Slide 1: Yiren Digital Investor Presentation 3Q22
Yiren Digital Investor Presentation 3Q22 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: 3Q22 Highlights
3Q22 Highlights +36% +31% +34% +6.2pp yoy yoy yoy yoy Number of Net Income Total Insurance Total Client Borrowers Margin Premiums Asset Served Continued improvement in profitability and recovery in scale growth 4
Slide 5: Wealth Solutions Gaining Traction
Wealth Solutions Gaining Traction Total Client Asset Number of Active clients from Hexiang and Yiren Select (RMB Million) 25,000 23,380 700,000 22,796 621,137 600,000 578,562 20,000 19,261 17,415 500,000 427,873 424,366 14,660 15,000 400,000 385,536 10,679 307,107 300,000 10,000 200,000 5,000 100,00
Slide 6: Loan Volume Driven by Our Borrowers
Loan Volume Driven by Our Borrowers Number of Borrowers Loans Facilitated (RMB Million) 827,767 737,320 12,000 618,131 9,541 10,000 548,495 8,000 434,153 6,842 6,170 6,299 345,939 6,000 5,253 4,930 4,771 Quarterly avg. 4,000 in 1H22 2,000 0 1Q21 2Q21 3Q21 4Q21 1H22 3Q22 1Q21 2Q21 3Q21 4Q21 1H22 3Q22
Slide 7: Financial Metrics
Financial Metrics Net Revenue GAAP Net Income (RMB Million) (RMB Million) 1,600 1,506 500 1,400 439 450 1,232 1,200 1,125 400 1,100 1,021 350 331 321 1,000 841 300 270 800 753 250 Quarterly avg. 220 200 in 1H22 200 181 Quarterly avg. 600 in 1H22 150 400 100 200 50 0 0 1Q21 2Q21 3Q21 4Q21 1H22 3Q22 1
Slide 8: Delinquency Rates
Delinquency Rates 15-29 days 30-59 days 60-89 days 2.0% 1.9% 1.5% 1.5% 1.4% 1.3% 1.2% 1.1% 1.0% 1.0% 0.9% 0.9% 0.8% 0.7% 0.7% 0.6% 0.6% 0.5% FY19 FY20 FY21 1Q22 2Q22 3Q22 Note: The asset quality is stabilizing and improving quarter over quarter as the company has finished its strategic product re-st
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 Holistic Wealth Comprehensive Financial Management Solutions Cash account Insurance account Investment accounts liquidity Management Wealth Protection Wealth Appreciation Consumption + Business Protection Investment
Slide 11: 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 Partners Services Intelligent KYC E-Signing Platform Funding 11
Slide 12: Credit-tech Business Mapping
Credit-tech Business Mapping Diversified product matrix, covering different scenarios 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 Offline owners with recurring O
Slide 13: 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 E-commerce Platforms Lifestyle Financial Services E-commerce Offers flexible installment-based Travel Entertainment payment options Average Principal Amt Loan T
Slide 14: 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 15: Holistic Wealth Solutions
Holistic Wealth Solutions Customer Spectrum Positioning Products Retail Clients Corporates l Partnering with over 200 corporates/institutions u One-stop holistic wealth Credit-Tech CreditEase Ecosystem solutions platform targeting l Catering to the comprehensive the mass affluent needs of mass afflu
Slide 16: Hexiang Insurance: Business Highlight and Differentiation
Hexiang Insurance: Business Highlight 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 capaciti
Slide 17: 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
Slide 18: Yiren Select: One-stop Holistic Wealth Solution Platform
Yiren Select: One-stop Holistic Wealth Solution Platform Holistic Wealth Selected Life Study Investment Financial product and institutional service Health management Self-improvement Asset Allocation partners suppliers sports and Leisure and child Knowledge and education strategy Yiren Communities -
Slide 19: Revenue Models and Monetization
Revenue Models and Monetization Hexiang Insurance Broker Insurance commissions Holistic Wealth Yiren Select Platform Advertising fees External funding Loan facilitation/post facilitation service fees (Customer acquisition, partners risk profiling, collection, etc.) Credit-Tech Loan Loan facilitation
Slide 20: 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 Solutions Protection 4 Driving up
Slide 21: Massive Opportunity in China's Personal Financial Services Industry
Massive Opportunity in China’s Personal Financial Services Industry Wealth Solution Consumer Finance Increasing Investment Needs Market in China (in RMB trillion) (By outstanding balance, RMB trillion) 400 23.4 348 350 50.0% 8% 300 Mass Affluent Prime R ： 250 Clients Borrowers 15.9 C AG 216 200 174
Slide 22: Appendix
APPENDIX 22
Slide 23: Income Statement
Unaudited Condensed Consolidated Statements of Operations a nv (in thousands, except for share, per share and per ADS data, and percentages) ( j A A ee oi fe} YIREN DIGITAL Income Statement For the Three Months Ended For the Nine Months Ended ‘September 30, September 30, September 30, September 30,
Slide 24: Cash Flow Data
Cash Flow Data | HA Sil 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 Nine Months Ended September 30, September 30, September 30, September 30, September 30, September 30, 202
Slide 25: Balance Sheet
Unaudited Condensed Consolidated Balance Sheets in thousands BAS Balance Sheet Gn howants) As of S| YIREN i December 31, June 30, September 30, _ September 30, 2021 2022 2022 2022 RMB RMB RMB UsD Cash and cash equivalents 2,864,543 4,354,487 3,612,972 507,904 Restricted cash 80,800 7921 48,346 6,796
Slide 26: Operating Highlights
. . . Operating Highlights and Reconciliation of GAAP to Non-GAAP Measures 4 BAS Operating Highlights Ginthowsands, except for number of borrowers number of iayestorsand percentages) Ete For the Three Months Ended For the Nine Months Ended ‘September 30, September 30, September 30," September 30, Se
Slide 27: Delinquency Rates
Delinquency Rates Delinquency Rates (Loan Facilitation Model) 15-29 da 30-59 d: December 31, 2019 3 # 3 December 31, 2021 3 2 8 June 30, 2022 3 14% 15% December 31, 2019 3 21% 16% December 31, 2021 3 E 3 June 30, 2022 3 11% 1.2% December 31, 2019 3 3 3 December 31, 2021 3 3 14% June 30, 2022 3 n SS
Slide 28: 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 Septempber 30, 2022__as of Septempber 30, 2022 (in RMB thousands) (in RMB thousands) 2020 9,614,819 76
Slide 29: M3+ NCO by Vintage
M3+ NCO by Vintage ss HASH M3+ Net Charge-Off Rate (Loan Facilitation Model) Loan Issued Month on Book Period 4 7 10 «13 16 19 2 25 28 31 M 2019Q1 0.0% 0.8% 2.0% 3.4% 53% 59% 63% 63% 63% 63% 6.3% 2019Q2 0.1% 1.5% 4.5% 7.5% 88% 92% 9.9% 10.3% 10.6% 10.6% 10.6% 2019Q3 0.2% 2.9% 6.8% 9.0% 10.4% 12.0% 1
Slide 30: Thanks!
THANKS! 30