Lexinfintech Holdings Ltd. · NASDAQ:LX
Lexinfintech — Q3 2022 Earnings Presentation
27 slides from Lexinfintech's earnings presentation, 2022
Slide 1: Investor Presentation Third Quarter 2022 Results
Investor Presentation Third Quarter 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 New consumption- Credit-driven Technology-driven driven location- platform services platform services based services 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 183 million registered users1 • Over 2600 merchant partners2 • Loan balance of Rmb94.6 billion1 1. As of 30 September 2022, or accumulati
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: 3Q22 Highlights
3Q22 Highlights Loan originations Total operating Net income created revenue generated 56.2 billion 2.69 billion 275.7 million Up 14.4% QoQ Up 11.5% QoQ Up 64.6% QoQ 10
Slide 15: Key Financials
Key Financials (Rmb000) 3Q21 2Q22 3Q22 QoQ YoY New Consumption-Driven, Location-Based 399,754 538,413 524,986 -2.5% 31.3% Services Income Technology-Driven Platform Services Income 803,737 436,194 499,699 14.6% -37.8% Credit-Driven Platform Services Income 1,765,304 1,438,223 1,665,652 15.8% -5.6% T
Slide 16: 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 +3.3% -7.2% 184 178 171 7.7 165 6.3 6.1 5.7 5.6 154 3Q21 4Q21 1Q22 2Q22 3Q22 3Q21 4Q21 1Q22 2Q22 3Q22 12
Slide 17: Steady Growth amid External Uncertainties
Steady Growth amid External Uncertainties Loan Originations (RMB bn) Outstanding Loan Balance (RMB bn) QoQ QoQ +14.4% +9.2% 55.8 56.2 94.6 49.1 92.9 43.6 43.2 86.6 86.0 83.8 3Q21 4Q21 1Q22 2Q22 3Q22 3Q21 4Q21 1Q22 2Q22 3Q22 1. Loan originations represents the total amount of loans originated during
Slide 18: Stable Increase Back to Normality
Stable Increase Back to Normality Operating Revenue Breakdown of Operating Revenue (RMBm) QoQ +11.5% 20% 2,969 New Consumption-Driven, Locati on-Based 2,690 Services Income 2,413 2,199 1,712 Technology-Driv en Pl atform Serv ices Income 19% 62% Credit-Driven Platform Services Income 3Q21 4Q21 1Q22 2
Slide 19: Increased Operating Efficiency to Ensure Profitability
Increased Operating Efficiency to Ensure Profitability Operating Expenses Breakdown of Operating Expenses (RMBm) QoQ -10.1% 745 722 16% 669 630 610 Sal es & Marketi ng 21% Research & Development 63% General & Administrative 3Q21 4Q21 1Q22 2Q22 3Q22 1. Breakdown of operating expenses for 3Q22 15
Slide 20: Profitability on Upward Trend
Profitability on Upward Trend Net Profit (RMBm) Net Margin QoQ QoQ +64.6% +3.3ppt 581 19.6% 256 276 11.6% 10.2% 167 6.9% 81 4.8% 3Q21 4Q21 1Q22 2Q22 3Q22 3Q21 4Q21 1Q22 2Q22 3Q22 16
Slide 21: Gradual Recovery from External Challenges
Gradual Recovery from External Challenges 30+ Delinquency Ratio 90+ Delinquency Ratio QoQ QoQ -24bps +3bps 2.63% 2.66% 4.85% 2.40% 4.61% 4.40% 3.99% 1.92% 3.68% 1.85% 3Q21 4Q21 1Q22 2Q22 3Q22 3Q21 4Q21 1Q22 2Q22 3Q22 17
Slide 22: APR Continues to Fall as Planned
APR Continues to Fall as Planned APR Mix Within 24% APR QoQ QoQ -30bps -0.7ppt 81.1% 80.4% 77.8% 28.4% 28.4% 27.6% 59.3% 26.5% 25.0% 24.6% 42.9% 24.3% 37.4% 37.6% 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 1Q21 2Q21 3Q21 4Q21 1Q22 2Q22 3Q22 1. APR refers to the average pricing of loan originations during ea
Slide 23: Appendix
03 Appendix
Slide 24: P&L Statement (1)
P&L Statement (1) For the Three Months Ended September 30, (In thousands, except for share and per share data) 2021 2022 RMB RMB US$ New Consumption-Driven, Location-Based Services 399,754 524,986 73,801 Technology-Driven Platform Services 803,737 499,699 70,247 Credit-Driven Platform Services 1,765
Slide 25: P&L Statement (2)
P&L Statement (2) For the Three Months Ended September 30, (In thousands, except for share and per share data) 2021 2022 RMB RMB US$ Operating expenses: Sales and marketing expenses (490,934) (424,544) (59,681) Research and development expenses (130,996) (140,560) (19,760) General and administrative
Slide 26: Balance Sheet (1)
Balance Sheet (1) As of (In thousands) December 31, 2021 September 30, 2022 RMB RMB US$ ASSETS Current assets Cash and cash equivalents 2,664,132 2,108,511 296,410 Restricted cash 1,305,435 1,236,978 173,892 Restricted time deposits 1,745,898 1,321,762 185,810 Short-term financing receivables 3,772,
Slide 27: Balance Sheet (2)
Balance Sheet (2) As of (In thousands) December 31, 2021 September 30, 2022 RMB RMB US$ LIABILITIES Current liabilities Accounts payable 15,705 33,438 4,701 Amounts due to related parties 23,102 3,802 534 Short-term borrowings 1,799,741 1,245,682 175,115 Short-term funding debts 3,101,381 3,908,918
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