Yiren Digital Ltd. · NYSE:YRD
Yiren Digital — Q2 2021 Earnings Presentation
31 slides from Yiren Digital's earnings presentation, August 2021
Slide 1: Q2 2021 Investor Presentation
Q2 2021 Investor Presentation August 2021 1
Slide 2: Safe Harbor Statement
Safe Harbor Statement This material contains forward-looking statements. These statements constitute “forward-looking” statements within the meaning of Section 21E of the Securities Exchange Act of 1934, as amended, and as defined in the U.S. Private Securities Litigation Reform Act of 1995. These f
Slide 3: Contents
Contents 1 Yiren Digital Overview 2 Business Highlights 3 Key Financial Highlights 3
Slide 4: Business Highlights
Business Highlights Leading Digital Personal Financial Services Platform in China Wealth Management: One-Stop Asset Allocation-based Service for the Mass Affluent Investors Consumer Credit: Full Spectrum of Credit Products with Both Online & Offline Channels Data and Technology at Core Strong Indust
Slide 5: Positioned as a Leading Digital Personal Financial Management Platform
Positioned as a Leading Digital Personal Financial Management Platform Income Generation Protection Consumption 5 5
Slide 6: Differentiated Business Model
Differentiated Business Model Positioning Digital Personal Management Service Consumer Credit and Business Model Wealth Management Loan & AUM Based Monetization Recurring Service Fee Customer Value Long Term Value Capital Light 6
Slide 7: Yiren Digital At A Glance, Q2 2021
Yiren Digital At A Glance, Q2 2021 Leading Digital Wealth Management Platform Leading Consumer Credit-Tech Player Total Client Asset Loan Balance Q2 2021 Q2 2021 ~RMB 14.7Bn ~RMB 12.5Bn No. of Active Investors1 No. of Borrowers Served Q2 2021 Q2 2021 ~386K ~434K Investor Service Customer Service AI
Slide 8: Contents
Contents 1 Yiren Digital Overview 2 Business Highlights 3 Key Financial Highlights 8
Slide 9: Massive Opportunity in China's Personal Financial Services Industry
Massive Opportunity in China’s Personal Financial Services Industry Wealth Management Consumer Credit Increasing Investment Customer Finance Needs Market in China (in RMB trillion) (By outstanding balance, RMB trillion) 350 40% 25 319 22.6 37% % 300 15 ： 30% 20 AGR 250 C 26% Mass Affluent Prime 192
Slide 10: Our Wealth Management Strategy
Our Wealth Management Strategy Total Investable Asset Service Needs Disruptive Wealth Model Assets UHNW Estate Planning Tax Advisory >RMB 100 M Immigration Philanthropy HNW Alternatives Education RMB 10 M - 100 M …… …… Cash Management One Stop Financial Advisory Mutual Funds for Mass Affluent Mass A
Slide 11: Wealth Management Business Model
Wealth Management Business Model Diverse Acqusition Channels Robo+Remote FA Hybrid Model Underlying Assets Existing Customers Cash Mgmt. Repeat Investment Online Direct Acquisition Cross Sale KYC / Up sale Equities Stocks Channel Partnership Portfolio Review Mutual Selected Funds and Rebalancing Inv
Slide 12: One-Stop Insurance Solution
One-Stop Insurance Solution Professionally Designed Investor Awareness Education System Seminar series, short-videos, articles KYC Intelligent KYC Robo+IA model, analyze customer needs Customized Plan Diverse Product Portfolio 190+ products from 20+ insurance companies, product comparison & Service
Slide 13: Tech Driven Approach To User Retention & Conversion
Tech Driven Approach To User Retention & Conversion Yiri: AI-Based Financial Assistant Education Financial Literacy Investment Q&A Products Consumer Loans Insurance Planning Fund of Funds … Customer Investment Strategy Intelligent KYC Onboarding Recommendation Engine Tech Layer Yiren Financial Cloud
Slide 14: Full Spectrum of Credit Products: ST Revolving Loans
Full Spectrum of Credit Products : ST Revolving Loans 1 2 Membership-based Multi-consumption Scenarios New Consumption Platform Lifestyle Financial Services E-commerce Offers flexible installment-based Travel Entertainment payment options Average Principal Amt Loan Tenure Target Customer Base < RMB2
Slide 15: Full Spectrum of Credit Products: Secured Auto Loans
Full Spectrum of Credit Products : Secured Auto Loans Customer Acquisition Channels Focused on 2nd & 3rd tier cities Nationwide Service Network Average auto value: ~RMB 70k Customer Referrals Targets new and second-hand car owners Average Principal Amt Loan Tenure Target Customer Base ~RMB 70,000 Av
Slide 16: Technology Driven Loan Facilitation Model
Technology Driven Loan Facilitation Model Loan Repayment Customer Referral， Credit Application Collections & AI Risk/Anti-Fraud Risk Mgmt Services Institutional Borrowers Post-facilitation Funding Provides Funding Services Partners Intelligent KYC E-Signing Platform Funding 16
Slide 17: Growth Strategy
Growth Strategy Grow Wealth Management business through asset-allocation model with Wealth Management products: differentiate asset sourcing Maintain high quality customer credit asset growth through Online & Offline with new product offerings: short/small revolving loans, auto-loans Develop data an
Slide 18: Contents
Contents 1 Yiren Digital Overview 2 Business Highlights 3 Key Financial Highlights 18
Slide 19: Wealth Management Gaining Traction
Wealth Management Gaining Traction Client Asset Per Investor1 Number of Active Investors2 (RMB millions) (RMB thousands) 450,000 16,000 243 260 250 385,536 400,000 5% 25. 240 14,000 230 220 192 210 350,000 200 307,107 12,000 172 190 180 300,000 170 10,000 160 150 250,000 115 140 8,000 130 120 200,00
Slide 20: Loan Volume Driven by Our Borrowers
Loan Volume Driven by Our Borrowers Number of Borrowers Loans Facilitated (Thousands) (RMB Million) 434 5,253 4,930 346 4,202 3,207 2,402 189 1,839 143 115 108 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 20
Slide 21: Financial Metrics
Financial Metrics Net Revenue Non-GAAP Net Income (RMB Million) (RMB Million) 200 181 1,161 1,100 1,125 1,024 1,023 96 80 19 755 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 -232 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 21
Slide 22: Proven Credit Performance
Proven Credit Performance 25% Cumulative M3+ NCO (as of June 30, 2021) 20% 15% 10% 5% 0% 4 7 10 13 16 19 22 25 28 31 34 2015Q1 2015Q2 2015Q3 2015Q4 2016Q1 2016Q2 2016Q3 2016Q4 2017Q1 2017Q2 2017Q3 2017Q4 2018Q1 2018Q2 2018Q3 2018Q4 2019Q1 2019Q2 2019Q3 2019Q4 2020Q1 2020Q2 2020Q3 2020Q4 22
Slide 23: APPENDIX
APPENDIX 23
Slide 24: Income Statement
‘Unaudited Condensed Consolidated Statements of Operations (in thousands, except for share, per share and per ADS data, and percentages) f j BASH YIREN DIGITAL For the Three Months Ended For the Six Months Ended Jane 30, March 31, Tune 30, June 30, June 30, ‘June 30, Tune 30, 2020 2021 2021 2021 202
Slide 25: Cash Flow Data
Cash Flow Data BASE YIREN DIGITAL 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, 2020 2021 2021
Slide 26: Balance Sheet
Balance Sheet Unaudited Condensed Consolidated Balance Sheets Gn thousands) Asof December 31, March 31, Tune 30, ‘Tune 30, 2020 2021 2021 2021 RMB RMB RMB UsD and cash equivalents 2,469,909 2,362,310 2,192,500 339,575 Accounts receivable 122,742 148,114 228,554 35,399 Contract cost 65,529 62.061 44,
Slide 27: Operating Highlights and Reconciliation of GAAP to Non-GAAP Measures
Operating Hig! jights and Reconciliation of GAAP to Non-GAAP Measures Gn thousands, except for number of borrowers, number of investors and percentages) Operating Highlights Amount of investment in current investment products ‘Number of investors in current investment products Amount of loans facili
Slide 28: Delinquency Rates
. Delinquency Rates (Loan Facilitation Model) —) N Delinquency Rates 15-29 days 30-59 days _ 60-89 days fj BAS YIREN DIGITAL All Loans December 31, 2015 13% 19% 15% December 31, 2016 0.6% 0.8% 0.7% December 31, 2017 05% 0.8% 0.6% December 31, 2018 1.0% 18% 17% December 31, 2019 0.8% 13% 10% December
Slide 29: M3+ NCO by Vintage
M3+ NCO by Vintage ASH Net Charge-Off Rate (Loan Facilitation Model) Loan Amount of Loans Accumulated M3+ Net Total Net Charge-Off Issued Facilitated Charge-Off Rate Period During the Period as of June 30, 2021 as of June 30, 2021 (in RMB eens) (in RMB thousands) 2016 3 749, 815 319.425 8.5% 2018 4,
Slide 30: M3+ NCO by Vintage
M3+ NCO by Vintage OAS M3+ Net Charge-Off Rate (Loan Facilitation Model) Loan Issued Month on Book Period 4 OE) 16 19 22 25 28 31 34 2015Q1 1.0% 1.9% 2.8% 3.7% 43% 48% 5.1% 53% 53% 53% 5.2% 2015Q2 1.1% 2.8% 4.2% 53% 62% 67% 7.0% 7.0% 69% 68% 68% 2015Q3 0.6% 2.2% 3.8% 5.0% 5.9% 65% 67% 68% 67% 67% 67
Slide 31: THANKS!
THANKS! 31