Slide 1: Q2 2020 Investor Presentation
Q2 2020 Investor Presentation August 2020
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: Yiren Digital
Yiren Digital Leading digital financial services platform in China Yiren Credit – Full spectrum of credit products with online/offline customer services channels Leading Digital Financial Yiren Wealth – One stop asset allocation-based online wealth Services management service for Mass Affluent Inves
Slide 5: Yiren Digital: Differentiated Business Model
Yiren Digital: Differentiated Business Model Positioning Digital Personal Financial Service Consumer Credit and Business Model Wealth Management Loan & AUM Based Monetization Recurring Service Fee Customer Value Long Term Value Capital Light 5
Slide 6: Yiren Digital At A Glance, Q2 2020
Yiren Digital At A Glance, Q2 2020 Leading Digital Wealth Management Platform Leading Consumer Creditech Player AUA Loan Balance Q2 2020 Q2 2020 ~RMB 28Bn ~RMB 33Bn No. of New Borrowers No. of Current Investors Q2 2020 Q2 2020 ~108K ~195K ~32K (non-P2P) AUA Non P2P Investments Customer Service ~RMB
Slide 7: Contents
Contents 1 Yiren Digital Overview 2 Business Highlights 3 Key Financial Highlights 7
Slide 8: Business Highlights
Business Highlights Leading Digital Personal Financial Services Platform in China Consumer Credit: Unique In-house Capabilities of Manufacturing Fixed Income Products With Full Spectrum of Online / Offline Channels Wealth Management: One-Stop Asset Allocation-based service for Mass Affluent Data and
Slide 9: Leading Digital Personal Financial Service Platform
Leading Digital Personal Financial Service Platform Wealth Management Unsecured Customer Wealth Management Market Finance Market in China in China (By outstanding balance, RMB trillion) 300 (By amount of investable assets, RMB trillion) 25 23 250 243 20 Prime Mass Affluent Borrowers Investors 200 15
Slide 10: Leading Creditech Platform
Leading Creditech Platform Omni-Channel Full Spectrum of Credit Product Diversified & Competitive Customer Services Funding Source With Balanced Credit Performance High Profit Generator Online Yield Retail Profit Contributor Nationwide Service Network Institutions Telemarketing Portfolio Repeat Cust
Slide 11: Extensive Data Set And Credit Decisioning Capabilities
Extensive Data Set And Credit Decisioning Capabilities Extensive Data Set Proprietary Decisioning Risk Grid Platform Big Data I Aggregation & Analysis 400+ Location Bank Statements Decisioning Rules Developed FICO II PBOC Credit Report Credit Card Chinese 1,000,000+ Online Banking Statements Market
Slide 12: Large and Expanding Borrowers Base
Large and Expanding Borrowers Base Cumulative Registered Borrowers Cumulative Served Borrowers (In thousands) (In millions) 100 6,000 88.4 90 5,000 4,918 80 70 4,000 60 50 3,000 40 2,000 30 20 1,000 10 0 0 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 1Q172Q173Q174Q171Q182Q18
Slide 13: 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 Fixed income for Mass Affluent Mass A
Slide 14: Yiren Wealth Business
Yiren Wealth Business Customer Acquisition One Stop Wealth Management Underlying Assets MMF Existing Customers Robo + Remote Financial Advisor Cash Hybrid Model Mgmt. Repeat Investment Bank WM Products Online Direct Acquisition Cross Sale KYC Fixed / Up sale Consumer Loans Income Channel Partnership
Slide 15: Accumulated Large P2P Investor Base
Accumulated Large P2P Investor Base AUA Per Investor1 Number of Current Investors1,2 (RMB billions) (RMB thousands) 151 152 212,381 60 141 143 141 143 144 150 185,326 140 134 127 120 50 120 110 97 40 83 90 1Q20 2Q20 30 Avg Investor Return 60 20 9% 9.0% 30 10 0 0 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q
Slide 16: Non-P2P Wealth Management Gaining Traction
Non-P2P Wealth Management Gaining Traction AUA Per Investor1 Number of Current Investors1,2 (RMB millions) (RMB thousands) 3,000 90 31,530 80 80 2,500 70 26,346 65 2,000 60 48 50 1Q20 2Q20 1,500 40 Non-P2P GMV 32 (RMB millions) 1,000 30 22 21 2,163 2,186 20 14 500 10 0 0 4Q18 1Q19 2Q19 3Q19 4Q19 1Q2
Slide 17: 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 18: Growth Strategy
Growth Strategy Maintain high quality customer credit asset growth through Online & Offline with new product offerings: short/small revolving loans, auto-loans Grow Wealth Management business through asset-allocation model with Wealth Management products: differentiate asset sourcing Develop data an
Slide 19: Contents
Contents 1 Yiren Digital Overview 2 Business Highlights 3 Key Financial Highlights 19
Slide 20: Loan Volume Driven by Our Borrowers
Loan Volume Driven by Our Borrowers Number of Borrowers Loans Facilitated (Million) (RMB Million) 135 9,674 115 108 2402 1839 2Q19 1Q20 2Q20 2Q19 1Q20 2Q20 20
Slide 21: Financial Metrics
Financial Metrics Net Revenue Net Income (RMB Million) (RMB Million) 17.7% 47.9% 24.4% 7.0% 1.9% -30.8% 2,217 154 19 2Q19 1Q20 2Q20 1,024 755 -232 2Q19 1Q20 2Q20 Take Rate (%) (1) (1) Take rate is calculated as net revenue (net of allowance of contract assets) divided by amount of loans originated.
Slide 22: Proven Credit Performance
Proven Credit Performance Cumulative M3+ NCO (as of June 30, 2020) 20% 18% 16% 14% 12% 10% 8% 6% 4% 2% 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 22
Slide 23: THANKS!
THANKS!
Slide 24: APPENDIX
APPENDIX
Slide 25: Income Statement
Unaudited Condensed Consolidated Statements of Operations (in thousands, except for share, per share and per ADS data, and percentages) Net revenue: Loan facilitation services Post-origination services Account management services Others Total net revenue Operating costs and expenses Sales and market
Slide 26: Cash Flow
Lj BASIN YIREN DIGITAL Cash Flow 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, 2019 2020 2020
Slide 27: Balance Sheet
Unaudited Condensed Consolidated Balance Sheets 1 BASE j ol YIREN DIGITAL Balan ce Sheet Gin thousands) heat December March3i, June 30, Tune 30, 31,2019 2020 2020 2020 RMB RMB RMB UsD Cash and cash equivalents 3,198,086 3,194,993 2,935,543 415,498 Restricted cash 71,056 43,001 90,879 12,863 Accounts
Slide 28: Operating Highlights and Reconciliation of GAAP to Non-GAAP Measures
Operating Highlights and Reconciliation of GAAP to Non-GAAP Measures LJ (in thousands, except for number of borrowers, number of investors and percentages) For the Three Months Ended For the Six Months Ended June30, March31, June30, June 30, Tune 30, June 30, June 30, 2019 2020 2020 2020 2019 2020 2
Slide 29: Delinquency Rates
Delinquency Rates Delinquency Rates Delinquent for 15-29 30-59 60-89 December 31, 2015 0.7% 1.2% : December 31, 2017 0.8% 3 0.8% December 31, 2019 1.2% 3 2 June 30, 2020 14% : 2.1% Online Channels December 31, 2016 0.5% 3 0.8% December 31, 2018 12% 2.3% 2.2% March 31, 2020 3 5.2% 3.8% December 31, 2
Slide 30: M3+ NCO by Vintage
M3+ NCO by Vintage Cj BASE Net Charge-Off Rate Loan Amount of Loans Accumulated M3+ Net Charge- Total Net Charge-Off Issued Facilitated Off Rate Period During the Period as of June 30, 2020 as of June 30, 2020 (in RMB thousands) (in RMB thousands) 53,805,112 5,057,850 2018 63,176,149 11,131,294 17.6
Slide 31: M3+ NCO by Vintage
M3+ NCO by Vintage £3 BASH M3+ Net Charge-Off Rate Loan Issued Month on Book Period 4 7 10 13 16 19 22 25 28 31 34 2015Q1 08% +-20% 34% 47% 57% 65% 71% 75% 717% 78% 78% 2015Q2 0.8% 23% 3.8% 52% 64% 73% 79% 83% 85% 87% 8.8% 2015Q3 04% 16% 31% 44% 56% 65% 7.1% 7.6% 7.9% 81% 8.4% 2015Q4 0.4% «1.6% 3.1%