Yiren Digital Ltd. · NYSE:YRD
Yiren Digital — Q4 2023 Earnings Presentation
31 slides from Yiren Digital's earnings presentation, Mar 21, 2024
Slide 1: Yiren Digital Investor Presentation
Yiren Digital Investor Presentation March,2024
Slide 2: Disclaimer
Disclaimer This presentation has been prepared by Yiren Digital solely for information purposes. This presentation does not constitute an offer to sell or issue or an invitation or recommendation to purchase or subscribe for any securities of the Company for sale in the United States or anywhere els
Slide 3: Our Vision
Our Vision “Our vision is to elevate customers' life quality by delivering AI-powered digital services, while also empowering the technological capabilities of selected sectors.” Better tech. Better life.
Slide 4: Company Overview
01 Company Overview
Slide 5: A Leading AI-Driven Financial & Lifestyle Services Platform
A Leading AI-Driven Financial & Lifestyle Services Platform Diversified Business Lines Driving Innovation and Value Financial Services Life & Property Insurance Consumption and lifestyle Revolving loan services provide Customized insurance services to cater to Satisfying diverse quality-of-life need
Slide 6: Financial Services: Technology Driven Loan Facilitation Model
Financial Services: Technology Driven Loan Facilitation Model Loan Repayment Customer Referral， Credit Application Collections & Risk Mgmt Services AI Risk/Anti-Fraud Borrowers Institutional Post-facilitation Provides Funding Funding Services Partners Intelligent KYC E-Signing Platform Funding
Slide 7: Revolving Financing Services
Revolving Financing Services Precise Targeting, Diverse Acquisition Precise-targeting Customers Multi-acquisition Channels • 100mn+ borrowers served • Social media marketing • Mainly aged 25-40 • E-commerce & life service platforms • Stable salary or self-employed • Offline consumption scenarios Rev
Slide 8: Strong Risk Control Capability
Strong Risk Control Capability 17 years of experience and data accumulation in the credit-tech business Extensive Strong capability to understand data across economic cycles and the lifecycle of loans. Data Accumulation Over 100 million of registered users, and millions of customers’ database 20+ Cr
Slide 9: Data-powered Flywheel to Drive Growth
Data-powered Flywheel to Drive Growth More customers and repeat users More data plugged into Better products our AI-driven system to and services make it more intelligent and efficient Deliver more Attract more partners personalized user with better offerings experience and diverse and terms service
Slide 10: Insurance: Providing Full Spectrum Products and Services
Insurance: Providing Full Spectrum Products and Services Competitive edges: 1）Nationwide business deployment 2）Experienced teams on property, life insurance and internet industry 3）Strong capacities in product innovation and market expansion Customer Acquistion Multi-layer of customer needs Product
Slide 11: Insurance Growth Strategy: 2B2C Model
Insurance Growth Strategy: 2B2C Model Customized Scenario-based Insurance Rich Application Scenarios products under 2B2C model Hexiang Insurance Medicine & Healthcare Travel & Leisure Serving both 2B and 2C clients 2B Corporate Clients with diversified products. After being served by Hexiang, workin
Slide 12: Insurance: Diverse and Rich Resources and Networks
Insurance: Diverse and Rich Resources and Networks As of Dec.31 2023, 130+ Partener Institutions Nationwide 1000+ insurance products on the shelf Our Partnering Insurers
Slide 13: Revenue Models and Monetization
Revenue Models and Monetization External funding Loan facilitation & Post origination partners service fees1 Financial Loan facilitation & Post origination service fees1 Services YRD licensed Guarantee service fees subsidary Financing service fees Insurance Insurance Insurance commissions Brokerage
Slide 14: Key Financial Highlights
02 Key Financial Highlights
Slide 15: What We Achieved in FY2023
What We Achieved in FY2023 +59% +80% +24% +185% yoy yoy yoy yoy Gross # of Borrowers Loans Facilitated Total Premiums merchandise Served volume - Substantial double-digit expansion in business size - Increasing profitability with improved operational efficiency - Strong cash position with ample free
Slide 16: Continuous Expansion in Borrower Base Driving Stable Volume Growth
Continous Expansion in Borrower Base Driving Stable Volume Growth Number of Borrowers Loans Facilitated (RMB Million) 4Q23: 4Q23: +14% QoQ 1,371,501 +19% QoQ 11,646 1,204,012 +59% YoY +72% YoY 9,814 1,013,972 8,156 862,226 872,235 737,320 6,784 6,299 6,420 556,094 4,934 508,746 4,607 1Q22 2Q22 3Q22
Slide 17: Insurance Brokerage Business: Key Strategic Pillar
Insurance Brokerage Business : Key Strategic Pillar Gross Written Premiums Cumulative Number of Insurance Clients (RMB Million) 4Q23: 4Q23: 1,283,102 -15% QoQ 1 +2% QoQ 1,256,762 -9% YoY 1 +39% YoY 1,133,069 1,428 1,007,238 1,335 1,332 924,824 866,874 1,209 755,819 997 923 633,431 806 798 1Q22 2Q22
Slide 18: Robust Revenue Growth with Increased Business Scale
Robust Revenue Growth with Increased Business Scale Net Revenue (RMB Million) (RMB Million) 4Q23: FY23: -3% QoQ +43% YoY +17% YoY 4,896 1,324 1,311 1,274 1,088 3,435 986 801 841 705 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23 FY22 FY23
Slide 19: Improved Profitability
Improved Profitablity GAAP Net Income (RMB Million) (RMB Million) 4Q23: FY23: +3% QoQ +74% YoY 2,080 +18% YoY 571 554 527 485 427 1,195 254 270 185 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23 FY22 FY23
Slide 20: Delinquency Rates
Delinquency Rates 1.5% 15-29 days 30-59 days 60-89 days 1.4% 1.3% 1.2% 1.3% 1.2%1.2% 1.2% 1.2% 1.1% 1.1% 1.1% 1.0% 1.0% 0.9% 0.9% 0.8% 0.8% 0.7% 0.7% 0.7% 0.6% 0.6% 0.5% FY19 FY20 FY21 FY22 1Q23 2Q23 3Q23 4Q23
Slide 21: Future Strategies
Future Strategies Financial service business Insurance brokerage Proactively adapting products and partnerships to 01 Expanding customer base and increasing line of credits for high quality borrowers through constantly-evolving AI systems and improved 02 embrace new regulations in the short-term, an
Slide 22: Investment Highlights
Investment Highlights Diversified Business Lines Driving Innovation and Value Comprehensive services covering a wide range of financial needs and consumption demands, strong synergies, healthy unit 01 economics with multiple growth drivers A Leading AI Business in the Making 02 Harnessing AI experti
Slide 23: Appendix
03 Appendix
Slide 24: Income Statement
Income Statement ee eee ee ae tate For the Three Months Ended For the Year Ended December 31, September 30, December 31, December 31, December 31, December 31, December 31, 2022 2023 2023, 2023, 2022 2023, 2023, RMB RMB RMB USD RMB RMB ‘USD ‘Net revenue: Loan facilitation services 525,137 586,883 T2
Slide 25: Cash Flow Data
Cash Flow Data Unaudited Condensed Consolidated Statements of Operations (in thousands, except for share, per share and per ADS data, and percentages) For the Three Months Ended For the Year Ended December sh September 30, December 31, December 31, December 31, December 31, December ss ae Net cash r
Slide 26: Balance Sheets
Balance Sheets Unaudited Condensed Consolidated Balance Sheets (in thousands) Asof December 31, September 30, December 31, December 31, 2022 2023 2023 2023 RMB RMB RMB USD Sesto alents 4,271,899 5,437,972 5,791,333 815,692 Trading securities - 74,185 76,053 10,712 Contract assets, net 626,739 826,08
Slide 27: Operating Highlights and Reconciliation of GAAP to Non-GAAP Measures
e) pe rati n g H l g h | l g h ts Operating Highlights and Reconciliation of GAAP to Non-GAAP Measures (in thousands, except for number of borrowers, number of insurance clients, cumulative number of insurance clients and percentages) For the Three Months Ended For the Year Ended December 31, Septem
Slide 28: Delinquency Rates
Delinquency Rates Delinquency Rates 15-29 days 30-59 days 60-89 days December 31, 2019 0.8% 1.3% 1.0% December 31, 2020 0.5% 0.7% 0.6% December 31, 2021 0.9% 1.5% 1.2% December 31, 2022 0.7% 1.3% 1.1% March 31, 2023 0.6% 1.2% 1.2% June 30, 2023 0.7% 1.1% 1.1% September 30, 2023 0.8% 1.2% 1.0% Decemb
Slide 29: NCOs
NCOs Net Charge-Off Rate Total Net Charge- Amount of Loans Accumulated M3+ Net Off Rate Loan Issued Facilitated Charge-Off as of December Period During the Period as of December 31, 2023 31, 2023 (in RMB thousands) (in RMB thousands) 9,614,819 746,687 22,623,101 1,070,819
Slide 30: NCOs by Vintage
NCOs by Vintage M3+ Net Charge-Off Rate Loan Issued Period Month on Book 4 7 10 13 16 19 22 25 28 Be 34 2019Q1 0.0% 0.8% 2.0% 3.4% 5.3% 5.9% 6.3% 6.3% 6.3% 6.3% 6.3% 2019Q2 0.1% 1.5% 4.5% 7.5% 8.8% 9.2% 9.9% 10.3% 10.6% 10.6% 10.6% 2019Q3 0.2% 2.9% 6.8% 9.0% 10.4% 12.0% 13.2% 13.8% 14.4% 14.6% 14.6%
Slide 31: THANKS!
THANKS! For more information, please contact our IR team at ir@yiren.com Welcome to follow us on our LinkedIn and X accounts @Yiren Digital Ltd.