Lexinfintech Holdings Ltd. · NASDAQ:LX
Lexinfintech — Q4 2022 Earnings Presentation
28 slides from Lexinfintech's earnings presentation, 2023
Slide 1: Investor Presentation: Fourth Quarter and Full Year 2022 Results
Investor Presentation Fourth Quarter and Full Year 2022 Results
Slide 2: Disclaimer
Disclaimer This presentation has been prepared by LexinFintech Holdings Ltd (the “Company”) pursuant to Section 5(d) of the U.S. Securities Act of 1933, as amended (the “Securities Act”) solely for informational purposes and is not an offer to buy or sell or a solicitation of an offer to buy or sell
Slide 3: Company Overview
01 Company Overview
Slide 4: Addressing the Market with Different Focus
Addressing the Market with Different Focus Core business supported by new growth opportunities Credit Facilitation Tech-Empowerment Installment Service Service E-commerce Platform Service 01
Slide 5: Commitment to 2C2B2F
Commitment to 2C2B2F Connecting consumers to business and financial institutions Business and Financial Institutions Consumers • Over 140 funding partners1 • Over 188 million registered users1 • Over 2600 merchant partners2 • Loan balance of Rmb99.6 billion1 1. As of 30 December 2022, or accumulativ
Slide 6: A Seamless Experience for New-Generation Consumers
A Seamless Experience for New-Generation Consumers Omni-channels and multipronged access for our users Consumer credit Maiya E-commerce 03
Slide 7: Empowering the Digitalization of Financial Institutions
Empowering the Digitalization of Financial Institutions Supporting financial institutions in the buildup of in-house capability and competitiveness Local Fintech deployment upgrade Channel co-building Digital infrastructure Product design Quality assets Risk management Operational efficiency Custome
Slide 8: Priorities Unchanged in Execution
Priorities Unchanged in Execution Staying compliant and competitive • Self-examination following the • Enhanced risk identification and same requirements as the 13 modeling platforms • Dynamic credit approval process Risk Compliance • Constant dialogue with regulators • Effective matching of individ
Slide 9: Optimize Customer Operation Strategy to Deal with External Uncertainty
Optimize Customer Operation Strategy to Deal with 工作不足External Uncertainty 明年计划 Premium Customer Focused • To increase the proportion of premium customers while controlling the access of high-pricing/high-risk customers • To take the initiative to seek the best balance of scale vs. risk • Stable ove
Slide 10: Lexin Accumulated Core Capabilities
Lexin Accumulated Core Capabilities Customer Service and Risk Management A Operation A • Abundant internal data B • High-quality external data • Customer operation by • Model iteration segmentation • AB Testing • Feature and qualification identification • Tailor-made products and services D B Techno
Slide 11: Lexin Smart Business Engine
Lexin Smart Business Engine Credit Application Approving Smart Business Engine Customer Alert Label Transaction Acquisition Summarize Acquisition Promoting Process Auto-Matching & Connecting Simulate IDSS Big Data Verify Insight Post Lending Collection & Quality Controlling 08
Slide 12: Lexin Eco-System
Lexin Eco-System Acquired high-quality customers through multi-scenarios Enlarged funding pool and consumption scenarios Increased scale and Lexin profitability Eco-System Empowered financial institutions Enriched data, optimized models and merchants & technology capabilities LePartner 09
Slide 13: Financial Update
02 Financial Update
Slide 14: 4Q22 Highlights
4Q22 Highlights Loan originations Total operating Net income created revenue generated 56.1 billion 3.05 billion 301.3 million Up 28.8% YoY Up 38.7% YoY Up 17.9% YoY 10
Slide 15: 4Q22 Highlights
4Q22 Highlights Revenue mix from APR for loan Mix within 24% Non-loan facilitation originations APR service 24.1% 83.3% 35.6% Diversified Down 0.2 ppt QoQ Up 2.9ppt QoQ revenue contribution 1. Loan originations represents the total amount of loans originated during each period, which includes both o
Slide 16: Key Financials
Key Financials (Rmb000) 4Q21 3Q22 4Q22 QoQ YoY Installment e-commerce platform service income 422,980 524,986 673,994 28.4% 59.3% Tech-empowerment service income 630,924 499,699 412,769 -17.4% -34.6% Credit facilitation service income 1,145,306 1,665,652 1,963,503 17.9% 71.4% Total operating revenue
Slide 17: Steady User Increase in Amount and Active Rate
Steady User Increase in Amount and Active Rate Number of Registered Users (In Millions) Number of Active Users (In Millions) QoQ QoQ +2.9% -6.1% 189 184 178 6.3 6.1 171 5.7 5.6 5.3 165 4Q21 1Q22 2Q22 3Q22 4Q22 4Q21 1Q22 2Q22 3Q22 4Q22 13
Slide 18: Steady Growth amid External Uncertainties
Steady Growth amid External Uncertainties Loan Originations (RMB bn) Outstanding Loan Balance (RMB bn) QoQ QoQ -0.2% +5.3% 56.2 56.1 49.1 99.6 43.6 43.2 94.6 85.9 86.6 83.8 4Q21 1Q22 2Q22 3Q22 4Q22 4Q21 1Q22 2Q22 3Q22 4Q22 1. Loan originations represents the total amount of loans originated during e
Slide 19: Stable V-shaped Trend Back to Normality
Stable V-shaped Trend Back to Normality Operating Revenue Breakdown of Operating Revenue (RMBm) QoQ +13.4% 22.1% 3,050 New Consumption-Driven, Locati on-Based Services Income 2,690 2,413 2,199 Technology-Driv en Pl atform Serv ices Income 1,712 13.5% 64.4% Credit-Driven Platform Services Income 4Q21
Slide 20: Operational Efficiency Continues to Optimize
Operational Efficiency Continues to Optimize Operating Expenses Breakdown of Operating Expenses (RMBm) QoQ -2.1% 745 15% 669 656 630 610 Sal es & Marketi ng 21% Research & Development 65% General & Administrative 4Q21 1Q22 2Q22 3Q22 4Q22 1. Breakdown of operating expenses for 4Q22 16
Slide 21: Profitability Held Strong
Profitability Held Strong Net Profit (RMBm) Net Margin QoQ QoQ +9.3% -3.0bps 301 11.6% 276 256 10.2% 9.9% 167 6.9% 4.8% 81 4Q21 1Q22 2Q22 3Q22 4Q22 4Q21 1Q22 2Q22 3Q22 4Q22 17
Slide 22: Steady Improvement amid Uncertainties
Steady Improvement amid Uncertainties 30+ Delinquency Ratio 90+ Delinquency Ratio QoQ QoQ +1bps -13bps 2.63% 2.66% 2.53% 4.85% 2.40% 4.61% 4.62% 4.40% 3.99% 1.92% 4Q21 1Q22 2Q22 3Q22 4Q22 4Q21 1Q22 2Q22 3Q22 4Q22 18
Slide 23: APR Continues to Fall as Planned
APR Continues to Fall as Planned APR Mix Within 24% APR QoQ QoQ -20bps +3ppt 83.3% 81.1% 80.4% 77.8% 27.6% 26.5% 59.3% 25.0% 24.6% 24.3% 24.1% 42.9% 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 3Q21 4Q21 1Q22 2Q22 3Q22 4Q22 1. APR refers to the average pricing of loan originations during each period 2. Mix within
Slide 24: Annual Summary
Annual Summary Loan Originations Outstanding Loan Balance (RMBbn) Operating Revenue (RMBbn) (RMBm) YoY YoY YoY -4.3% +15.9% -13.3% 214 99.6 205 11,381 9,866 85.9 2021 2022 2021 2022 2021 2022 Gross Margin Operating Expenses Net Profit (RMBm) (RMBm) YoY YoY YoY -19.8ppt +0.8% -64.6% 50.5% 2,679 2,700
Slide 25: Appendix
03 Appendix
Slide 26: P&L Statement
P&L Statement For the Three Months Ended December 31, For the Year Ended December 31, (In thousands, except for share and per share data) 2021 2022 2021 2022 RMB RMB US$ RMB RMB US$ Operating revenue: Credit facilitation service income 1,145,306 1,963,503 284,681 6,955,809 5,963,803 864,670 Loan fac
Slide 27: Balance Sheet (1)
Balance Sheet (1) As of (In thousands) December 31, 2021 December 31, 2022 RMB RMB US$ ASSETS Current assets Cash and cash equivalents 2,664,132 1,494,150 216,631 Restricted cash 1,305,435 1,267,512 183,772 Restricted time deposits 1,745,898 1,331,858 193,101 Short-term financing receivables, net 3,
Slide 28: Balance Sheet (2)
Balance Sheet (2) As of December 31 , (In thousands) December 31, 2021 2022 RMB RMB US$ LIABILITIES Current liabilities Accounts payable 15,705 25,970 3,765 Amounts due to related parties 23,102 4,669 677 Short-term borrowings 1,799,741 1,168,046 169,351 Short-term funding debts 3,101,381 4,385,253
LexinFintech Holdings — Q4 2022 Earnings Presentation on 6ix