Yiren Digital Ltd. · NYSE:YRD
Yiren Digital — Q4 2021 Earnings Presentation
31 slides from Yiren Digital's earnings presentation, 2022
Slide 1: Yiren Digital Investor Presentation 4Q21&FY21
Yiren Digital Investor Presentation 4Q21&FY21 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 Key Financial Updates 2 Business Models and Strategies 3
Slide 4: 4Q21 Highlights
4Q21 Highlights +21% +47% +244% 36% qoq yoy yoy Wealth New Loans Insurance Management as under loan Adj. Net Income Brokerage % of Total facilitation Premium Revenue model Note: Excluding the impact of the one-time business disposal expenses in 4Q20, adjusted net income in 4Q21 saw an increase of 24
Slide 5: Wealth Management Gaining Traction
Wealth Management Gaining Traction Client Asset Per Investor1 Number of Active Investors2 (RMB millions) (RMB thousands) 450,000 427,873 424,366 20,000 285 300 290 400,000 385,536 259 280 18,000 243 270 260 16,000 250 240 350,000 230 307,107 192 220 300,000 14,000 210 172 200 190 12,000 180 250,000
Slide 6: Loan Volume Driven by Our Borrowers
Loan Volume Driven by Our Borrowers Number of Borrowers Loans Facilitated (Thousands) (RMB Million) 618 6,842 548 6,170 5,253 434 4,930 4,203 346 3,207 189 143 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 Note 1: The decline in loan volumes facilitated was due to the scale back of our
Slide 7: Financial Metrics
Financial Metrics Net Revenue Non-GAAP Net Income (RMB Million) (RMB Million) 331 321 1,232 1,161 1,100 1,125 1,023 1,021 200 181 96 80 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 3Q20 4Q20 1Q21 2Q21 3Q21 4Q21 Note 1: The company has been proactively optimizing its product structure and shifting towards a shorter
Slide 8: Delinquency Rates
Delinquency Rates 15-29 days 30-59 days 60-89 days 1.8% 1.7% 1.5% 1.3% 1.2% 1.0% 1.0% 0.9% 0.9% 0.8% 0.8% 0.8% 0.8% 0.7% 0.7% 0.6% 0.7% 0.6% 0.5% 0.5% 0.5% FY18 FY19 FY20 1Q21 2Q21 3Q21 4Q21 Note: Delinquency rate uptick in 4Q21 was driven by the deterioration of offline asset amid the pandemic. The
Slide 9: Contents
Contents 1 Key Financial Updates 2 Business Models and Strategies 9
Slide 10: Yiren Digital: A Leading Digital Personal Financial Management Platform
Yiren Digital: A Leading Digital Personal Financial Management Platform Credit-Tech Wealth Management Comprehensive Financial Management Needs Cash account Investment accounts Insurance account liquidity Management Wealth Appreciation Wealth Protection Consumption Investment Protection 10 10
Slide 11: Wealth Management Business Mapping
Wealth Management Business Mapping Customer Spectrum Positioning Products Retail Investors Corporates l 7000+financial products from over 200 financial u One-stop online wealth Credit-Tech CreditEase Ecosystem institutions management platform targeting the mass affluent l Non-financial products and
Slide 12: Yiren Wealth: One-stop Online Wealth Management Platform
Yiren Wealth: One-stop Online Wealth Management Platform Robot + Remote Consulting Underlying Assets Diverse Acqusition Channels Hybrid Model Legacy Customers Repeat Investors Cash Mgmt. Online Direct Acquisition Cross-selling KYC / Upselling Channel Partnership Mutual Selected Funds Tele-sales Port
Slide 13: Yiren Select: 'Finance plus life' Super-app Strategy
Yiren Select: ‘Finance plus life’ Super-app Strategy Serving you in a broader way Targeting Four Key Common Need Scenarios Health Study Lifestyle Family Medical treatment, Investment lessons, Membership malls, Parenting education, health managment, career management, selected entry lux, training cam
Slide 14: Hexiang Insurance: Business Model and Differentiation
Hexiang Insurance: Business Model and Differentiation • Differentiated positioning：Providing comprehensive customized and scenario-based insurance services • Competitive edges：1）Nationwide business deployment 2）Experienced teams on property, life insurance and internet industry 3）Strong capacities i
Slide 15: Hexiang Growth Strategy: 2B2C Model
Hexiang 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 with diversified products. 2B Corporate Clients After being served by Hexiang, working w
Slide 16: Credit Tech: Technology Driven Loan Facilitation Model
Credit Tech: 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: Credit-tech Business Mapping
Credit-tech Business Mapping Diversified product matrix, covering different senarios Unsecured revolving loans SME loans Online Young Internet customers/ employees with stable income Online Covering a variety of life scenarios Small business and flexible credit needs owners Offline with recurring op
Slide 18: Full Spectrum of Credit Products: Small Revolving Loans
Full Spectrum of Credit Products : Small Revolving Loans 1 2 Customer Acquisition Channels Self-Developed Diversified Consumption Scenarios New Consumption Platforms Lifestyle Financial Services E-commerce Offers flexible installment-based Travel Entertainment payment options Average Principal Amt L
Slide 19: Full Spectrum of Credit Products: SME Loans
Full Spectrum of Credit Products : SME loans SMEs Across Varied Industries Diversified Channel Partners Tech-driven Credit Service SaaS Machine Learning & Model Building Data-driven Risk Pricing E-commerce Cross-platform Customized Service Accumulatively Served Offline Stores Offers fast-track insta
Slide 20: Revenue Models and Monetization
Revenue Models and Monetization Hexiang Insurance Broker Insurance commissions Wealth Yiren Wealth Management Platform Transaction based service fees External funding Loan facilitation/post facilitation service fees (Customer acquisition, risk partners profiling, collection, etc.) Credit-Tech Loan L
Slide 21: Growth Strategy
Growth Strategy 1 Integrating different business lines 3 Credit-tech: In response to to explore customers’ long-term Consumption regulatory direction, transitioning to C comprehensive financial (moving to 24% APR customers)+ B management needs strategy (SMEs) Wealth Appreciation Protection 4 Driving
Slide 22: 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 23: Appendix
APPENDIX 23
Slide 24: Income Statement
fj HASH YIREN DIGITAL In come State ment 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 Deceniber September 30, December December December December December 31,2020
Slide 25: Cash Flow Data
YIREN DIGITAL 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 September 30, December December December December December 31,2020 2021 31,2021
Slide 26: Balance Sheet
{BASH Balance Sheet Unaudited Condensed Consolidated Balance Sheets S| vIREH DIGITAL (in thousands) As of December 31, September 30, December 31, December 31, 2020 2021 2021 2021 RMB RMB RMB USD Cash and cash equivalents 2,469,909 2,328,380 2,864,543 449,511 Restricted cash 237.239 91,830 80,800 126
Slide 27: Operating Highlights
Operating Highlights ss HASH Operating Highlights and Reconciliation of GAAP to Non-GAAP Measures (in thousands, except for number of borrowers, number of investors and percentages) For the Three Months Ended For the Year Ended. December 31, September 30, December 31, December 31, December 31, Decem
Slide 28: Delinquency Rates
Delinquency Rates Delinquency Rates (Loan Facilitation Model) 5-29 days 30-59 days 60-89 da December 31, 2015 1.3% 1.9% 1.5% December 31, 2017 0.5% 08% 0.6% December 31, 2019 3 13% 1.0% December 31, 2021 E 15% 1.2% Online Channels December 31, 2016 0.8% 1.1% 1.7% December 31, 2018 ° RS 2 a xs Decemb
Slide 29: M3+ NCO by Vintage
M3+ NCO by Vintage Net Charge-Off Rate (Loan Facilitation Model) Accumulated M3+ Net Total Net Charge-Off Loan Amount of Loans Charge-Off Rate Issued Facilitated as of December 31, as of December 31, Period During the Period 2021 2021 “as Sa s30g2a«SSCSC«S SCS 2016 3,749,815 317,288 8.5% 20175043494
Slide 30: M3+ NCO by Vintage
M3+ NCO by Vintage M3+ Net Charge-Off Rate (Loan Facilitation Model) i fea Month on Book 2015Q1 10% 19% 28% 3.7% 43% 48% 5.1% 5.3% 53% 5.3% 5.2% 2015Q3 0.6% 2.2% 3.8% 5.0% 5.9% 65% 6.7% 68% 6.7% 6.7% 6.7% 2016Q1 0.6% 0.9% 1.3% 1.7% 20% 22% 24% 2.7% 2.9% 3.0% 32% 2016Q3 04% 1.7% 2.7% 41% 53% 65% 7.7%
Slide 31: Thanks!
THANKS! 31