Yiren Digital Ltd. · NYSE:YRD
Yiren Digital — Q1 2020 Earnings Presentation
32 slides from Yiren Digital's earnings presentation, June 2020
Slide 1: Q1 2020 Investor Presentation
Q1 2020 Investor Presentation June 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, Q1 2020
Yiren Digital At A Glance, Q1 2020 Leading Digital Wealth Management Platform Leading Consumer Creditech Player AUA Loan Balance Q1 2020 Q1 2020 ~RMB 32Bn ~RMB 42Bn No. of Current Investors No. of New Borrowers Q1 2020 Q1 2020 ~221K ~115K ~26K (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 88.1 90 5,000 4,810 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 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18
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) 151 152 143 144 150 239,852 60 141 143 141 212,381 134 127 120 50 120 110 97 40 83 90 4Q19 1Q20 30 Avg Investor Return 60 20 9% 9% 30 10 0 0 1Q17 2Q17 3Q17 4Q17 1Q18 2Q18 3Q18 4Q18 1Q1
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) 1,800 70 65 26,346 1,600 21,360 60 1,400 48 50 1,200 1,000 40 4Q19 1Q20 32 800 30 Non-P2P GMV 22 21 (RMB millions) 600 20 2,548 14 400 10 2,163 200 0 0 4Q18 1Q19 2Q19 3Q19 4Q19
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) 150 10,935 126 115 7,998 1839 1Q19 4Q19 1Q20 1Q19 4Q19 1Q20 20
Slide 21: Financial Metrics
Financial Metrics Net Revenue Net Income (RMB Million) (RMB Million) 16.4% 22.2% 47.9% 18.6% 17.1% 1.9% 2,364 404 369 1,980 1,024 19 1Q19 4Q19 1Q20 1Q19 4Q19 1Q20 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: Unit Economics
Unit Economics FY 2019 (per RMB 100 loan facilitated) 22.0 E Net Revenue Sales and marketing Origination and servicing General and administrative fj BASIN YIREN DIGITAL Allowance for contract — Tax and Other Net Income assets Expenses/Income LT DP ir
Slide 23: Proven Credit Performance
Proven Credit Performance Cumulative M3+ NCO (as of March 31, 2020) 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 23
Slide 24: THANKS!
THANKS!
Slide 25: APPENDIX
APPENDIX
Slide 26: Income Statement
Lj BASIN YIREN DIGITAL Income Statement Unaudited Condensed Consolidated Statements of Operations (an thousands, except for share, per share and per ADS data, and percentages) For the Three Months Ended ‘March 31, 2019 March 31,2020 March 31, 2020 RMB RMB usD ‘Net revenue: Loan facilitation services
Slide 27: Cash Flow
BAM 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 March 31, 2019 March 31, 2020. March 31, 2020 RMB UsD Net cash (used in)/ generated from ing activities (658,
Slide 28: Balance Sheet
Lj BASIN YIREN DIGITAL B a | ance S h e et Unaudited Condensed Consolidated Balance Sheets (in thousands) Asof December 31, 2019 ‘March 31, 2020 ‘March 31, 2020 RMB RMB UsD ‘Cash and cash equivalents 3,198,086 3,194,993 451,219 Restricted cash 71,056 43,001 6,073 Accounts receivable 3,308 33,902 4,7
Slide 29: Operating Highlights
BAM YIREN DIGITAL Operating Highlights Operating Highlights and Reconciliation of GAAP to Non-GAAP Measures (in thousands, except for number of borrowers, number of investors and percentages) For the Three Months Ended March 31, 2019 March 31, 2020 March 31, 2020 RMB RMB USD Amount of p2p investment
Slide 30: Delinquency Rates
BAM YIREN DIGITAL Delinquency Rates Delinquency Rates Delinquent for 15-29 30-59 60-89 December 31, 2015 0.7% : December 31, 2017 0.8% 3 ° ey s December 31, 2019 1.2% nN 3 2 December 31, 2015 0.5% 2 0.6% December 31, 2017 11% 11% 3 December 31, 2019 16% : 2.5% December 31, 2015 0.7% 2 3 December 31,
Slide 31: M3+ NCO by Vintage
M3+ NCO by Vintage Cj BASE M3+ 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 March 31, 2020 as of March 31, 2020 (in RMB thousands) (in RMB thousands) 2016 53,805,112 5.071.489 94% 2018 63,176,149
Slide 32: M3+ NCO by Vintage
M3+ NCO by Vintage Cj BASE M3+ Net Charge-Off Rate Loan Issued Month on Book Period 2015Q1 0.8% 2.0% 3.4% 4.7% 5.71% 6.5% 7.1% 7.5% 7.7% 7.8% 7.8% 2015Q3 0.4% 1.6% 3.1% 44% 5.6% 6.5% 7.1% 7.6% 7.9% 81% 84% 2016Q1 0.3% 1.2% 2.5% 3.6% 4.5% 5.2% 58% 64% 7.0% 7.4% 7.6% 2016Q3 0.3% 1.6% 3.1% 43% 5.4% 6.6