Yiren Digital Ltd. · NYSE:YRD
Yiren Digital — Q2 2024 Earnings Presentation
30 slides from Yiren Digital's earnings presentation, Aug 20, 2024
Slide 1: Yiren Digital Investor Presentation
Yiren Digital Investor Presentation August,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 Service Fees 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 Revolving loans ranging from 4-200k
Slide 8: Strong Risk Control Capability
Strong Risk Control Capability 18 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 June.30 2024, 130+ Partner 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 2Q24
What We Achieved in 2Q24 +59% +47% -20% +40% yoy yoy yoy yoy Gross # of Borrowers Loans Facilitated Total Premiums merchandise Served volume - Sustainable growth in revenue and business scale - Strong cash position and ample free cash flow - Declared semi-annual dividends of no less than 10% of net
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) 1,491,756 2Q24: 2Q24: 12,936 1,371,501 1,352,200 +10% QoQ +9% QoQ 11,646 11,910 +47% YoY 1,204,012 +59% YoY 9,814 1,013,972 872,235 8,156 862,226 737,320 6,784 6,299 6,420 556,094 4,
Slide 17: Insurance Brokerage Business: Key Strategic Pillar
Insurance Brokerage Business : Key Strategic Pillar Gross Written Premiums Cumulative Number of Insurance Clients (RMB Million) 2Q24: 2Q24: 1,410,158 +16% QoQ +5% QoQ 1,343,660 -20% YoY +24% YoY 1,283,102 1,256,762 1,428 1,133,069 1,335 1,332 1,007,238 1,209 924,824 1,061 866,874 997 923 912 755,819
Slide 18: Resilient Business Structure Driving Sustainable Growth
Resilient Business Structure Driving Sustainable Growth Net Revenue GAAP Net Income (RMB Million) (RMB Million) 2Q24: 2Q24: +9% QoQ -16% QoQ +13% YoY -22% YoY 571 554 1,497 527 485 1,378 486 1,324 1,311 1,274 1,088 427 410 986 841 270 801 254 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23 1Q24 2Q24 2Q22 3Q22 4Q
Slide 19: Delinquency Rates
Delinquency Rates 15-29 days 30-59 days 60-89 days 1.6% 1.6% 1.5% 1.4% 1.4% 1.4% 1.2% 1.3% 1.2% 1.1% 0.9% 0.9% 0.9% 0.8% 0.7% 0.7% 0.6% 0.5% FY20 FY21 FY22 FY23 1Q24 2Q24
Slide 20: 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 21: 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 22: Appendix
03 Appendix
Slide 23: Income Statement
Income Statement 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 Six Months Ended Tune 30, March 31, June 30, June 30, June 30, June 30. June 30, 2023 2024 2024 2024 2023, 2024
Slide 24: 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 Six Months Ended June 30, March 31, June 30, June 30, June 30, June 30, June 30, 2023, 2024 2024 2024 2023, 2024 2
Slide 25: Balance Sheets
Balance Sheets ‘Unaudited Condensed Consolidated Balance Sheets (in thousands) Asof December 31, March3i, June 30, Tune 30, 2023 2024 2024 2024 RMB RMB RMB UsD Cash and cash ra ralents 5,791,333 5,903,995 5,496,932 756,403 3 77,967 83,89 8 36,787 g J p i Hl Ey 8 Loans at fair value 677,835, 655,058
Slide 26: Operating Highlights
Operating Highlights —_ 7 én thousands, except for number of borrowers, number of insurance clients, cumulative number of insurance clients and percentages) For the Three Months Ended For the Six Months Ended June 30, March 31, June30, June 30, June 30, June 30, June 30, 2023 2024 2024 2024 2023, 20
Slide 27: Delinquency Rates
Delinquency Rates Delinquency Rates 15-29 days 30-59 days 60-89 days December 31, 2020 0.5% 0.7% 0.6% December 31, 2022 0.7% 1.3% 1.1% March 31, 2024 0.9% 1.6% 1.4%
Slide 28: NCOs
NCOs Net Charge-Off Rate Amount of Loans Accumulated M3+ Net Total Net Charge- Loan Issued Facilitated Charge-Off Off Rate Period During the Period as of June 30, 2024 as of June 30, 2024 (in RMB thousands) (in RMB thousands) 2019 3,431,443 381,533 11.1% 2020 9,614,819 723,686 7.5% 2021 23,195,224 1
Slide 29: NCOs by Vintage
NCOs by Vintage M3+ Net Charge-Off Rate Loan Issued Peri Month on Book 2019Q1 0.0% 90.8% 2.0% 3.4% 5.3% 5.9% 63% 63% 63% 63% 63% 2019Q3 0.2% = 2.9% 6.8% 9.0% 10.4% 12.0% 13.2% 13.8% 144% 14.6% 14.6% 2020Q1 0.6% 92.3% 41% 5.2% 6.0% 62% 66% 7.3% 78% 7.9% 7.9% 2020Q3 1.1% 3.3% 5.1% 63% 7.1% 8.1% 87% 89
Slide 30: THANKS!
THANKS! For more information, please contact our IR team at ir@yiren.com Welcome to follow us on LinkedIn & X @Yiren Digital Ltd.