Yiren Digital Ltd. · NYSE:YRD
Yiren Digital — Q2 2023 Earnings Presentation
24 slides from Yiren Digital's earnings presentation, Aug 17, 2023
Slide 1: Yiren Digital Investor Presentation 2Q 2023
Yiren Digital Investor Presentation 2Q 2023 1
Slide 2: Disclaimer
Disclaimer This presentation has been prepared by Yiren Digital solely for information purposes. This presentation does not constitute an offer to sell or issue or an invitation or recommendation to purchase or subscribe for any securities of the Company for sale in the United States or anywhere els
Slide 3: Company Overview
fj HAS YIREN Sei] Company Overview » .,.,°,°|©;«€©«©™©5»]»«=©=©—lCUOC,Z7?’rrm®: ee
Slide 4: We are an AI-Driven One-stop Financial & Lifestyle Services Platform
We are an AI- Driven One-stop Financial & Lifestyle Services Platform Life l Property Driving business growth through Insurance product innovation, customization, agent development and digitalization Continuous product innovation to cater to diversified consumption Consumption & scenarios Financial
Slide 5: Financial Services: Technology Driven Loan Facilitation Model
Financial Services: 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 5
Slide 6: Acquire High-Quality Borrowers through Diversified Consumption Scenarios
Acquire High-Quality Borrowers through Diversified Consumption Scenarios 1 2 Self-Developed Multi-acquistion Channels E-commerce Platform Lifestyle Financial Services E-commerce Offers flexible installment-based Travel/Entertainment payment options Average Principal Amt Loan Tenure Target Customer B
Slide 7: Insurance: Providing Full Spectrum Products + Services
Insurance: Providing Full Spectrum Products + Services • Competitive edges：1）Nationwide business deployment 2）Experienced teams on property, life insurance and internet industry 3）Strong capacities in market expansion Customer Acquistion Multi-layer of customer needs Product Strategy Entrepreneur ri
Slide 8: Insurance Growth Strategy: 2B2C Model
Insurance 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, workin
Slide 9: Revenue Models and Monetization
Revenue Models and Monetization Insurance Brokerage Insurance commissions Insurance External funding Loan facilitation & Post origination partners service fees1 Financial Loan facilitation & Post origination Services service fees1 YRD licensed subsidary Guarantee service fees Financing service fees
Slide 10: Key Financial & Operational Highlights
Key Financial & Operational Highlights 10
Slide 11: What We Achieved in 2Q23
What We Achieved in 2Q23 +67% +50% +82% +354% yoy yoy yoy yoy Cumulative Gross Total Insurance # of Borrowers Insurance merchandise Premiums Served Clients volume 11
Slide 12: Insurance Business: Key Growth Pillar
Insurance Business : Key Growth Pillar Gross Written Premiums Cumulative Number of Insurance Clients (RMB Million) 1,133,069 1,335 1,332 1,007,238 924,824 866,874 997 923 755,819 806 798 633,431 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 12
Slide 13: Continuous Expansion in Borrower Base Driving Stable Volume Growth
Continous Expansion in Borrower Base Driving Stable Volume Growth Number of Borrowers Loans Facilitated (RMB Million) 8,156 1,013,972 872,235 6,784 862,226 6,420 6,299 737,320 4,934 4,607 556,094 508,746 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 13
Slide 14: Robust Revenue and Profitability through Challenging Environments
Robust Revenue and Profitablity through Challenging Environments Net Revenue GAAP Net Income (RMB Million) (RMB Million) 1,324 527 485 1,088 427 986 841 801 705 270 254 185 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 14
Slide 15: Delinquency Rates
Delinquency Rates 15-29 days 30-59 days 60-89 days 1.5% 1.3% 1.2% 1.3% 1.2% 1.2% 1.1% 1.1% 1.1% 1.0% 0.9% 0.8% 0.7% 0.7% 0.7% 0.6% 0.6% 0.5% FY19 FY20 FY21 FY22 1Q23 2Q23 15
Slide 16: Appendix
APPENDIX 16
Slide 17: Income Statement
Lj BASIN YIREN DIGITAL Unaudited Condensed Consolidated Statements of Operations (in thousands, except for share, per share and per ADS data, and percentages) For the Three Mouths Ended For the Six Mouths Ended June 30, March 31, June 30, Tune 30, Tune 30, Tune 30, Tune 30, 2022 2023 2023 2023 2022
Slide 18: Cash Flow Data
Cash Flow Data 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, | March31, June 30, June 30, ‘June 30, June 30, June 30, 2022 2023 2023, 2
Slide 19: Balance Sheets
Balance Sheets Unaudited Condensed Consolidated Balance Sheets (in thousands) BASH YIREN DIGITAL As of December 31, March 31, Tune 30, Tune 30, 2022 2023 2023 2023 RMB RMB RMB UsD Cash and cash equivalents 4,271,899 5,077.21 5,808,775 801,067 Restricted cash 88,796 55,062 15,777 2,176 Accounts recei
Slide 20: Operating Highlights
Operating Highlights | HAE Operating Highlights and Reconciliation of GAAP to Non-GAAP Measures YIREN DIGITAL (in thousands, except for number of borrowers, number of insurance clients, cumulative number of insurance clients and percentages) For the Three Months Ended For the Six Months Ended June 3
Slide 21: Delinquency Rates
Delinquency Rates HAI YIREN DIGITAL Delinquency Rates 15-29 os 30-59 a 60-89 S December 31, 2020 0.5% 0.7% 0.6% December 31, 2022 0.7% 1.3% 1.1% June 30,2023 0.7% 1.1% 1.1%,
Slide 22: NCOs
YIREN DIGITAL NCOs Net Charge-Off Rate Amount of Loans Accumulated M3+ Net Total Net Charge-Off Loan Issued Facilitated Charge-Off Rate Period During the Period as of June 30, 2023 as of June 30, 2023 (in RMB thousands) (in RMB thousands) 2020 9,614,819 767.540 8.0% 871,590 3.9% 2022 22,623,101 jf
Slide 23: NCOs by Vintage
NCOs by Vintage Loan Issued M3+ Net Charge-Off Rate Month on Book Period 4 7 10 13 16 19 22 25 28 31 34 2019Q1 0.0% 0.8% 2.0% 3.4% 5.3% 5.9% 6.3% 6.3% 6.3% 6.3% 6.3% 2019Q2 0.1% 1.5% 4.5% 7.5% 88% 9.2% 9.9% 10.3% 10.6% 10.6% 10.6% 2019Q3 0.2% 2.9% 6.8% 9.0% 10.4% 12.0% 13.2% 13.8% 14.4% 14.6% 14.6%
Slide 24: Thanks!
THANKS! 24