Slides
Page 1
Q3 2024 Results Presentation December 10, 2024
Page 2
NOTES START FROM HERE AND GROW UP CONTENT BELOW THIS LINE CONTENT BELOW THIS LINE SUBTITLE BELOW THIS LINE TITLE CAN NOT GO ABOVE THIS LINE Restatement of Financial Information Pursuant to the International Accounting Standard 29, Financial Reporting in Hyperinflationary Economies (“IAS 29”), the financial statements of entities whose functional currency is that of a hyperinflationary economy must be adjusted for the effects of changes in a general price index. Turkish companies reporting under International Financial Reporting Standards (“IFRS”), including the Company, have been required to apply IAS 29 to their financial statements for periods ending on and after June 30, 2022. The Company’s consolidated financial statements as of and for the three and nine months ended September 30, 2024, including figures corresponding to the same periods of the prior year, reflect a statement pursuant to IAS 29. Under IAS 29, the Company’s financial statements are presented in terms of the measuring unit current as of September 30, 2024. All the amounts included in the financial statements which are not stated in terms of the measuring unit current as of the date that the reporting period are restated applying the general price index. Adjustments for inflation has been calculated considering the price indices published by the Turkish Statistical Institute (TurkStat). For the indices used, please refer to the press release. The information contained in documents we have previously filed or furnished with the U.S. Securities and Exchange Commission (“SEC”) is not directly comparable to the information presented below on an adjusted basis. Non-IFRS Financial Measures This presentation includes certain non-IFRS financial measures, including but not limited to Gross Contribution, IAS 29-Unadjusted Gross Contribution, IAS 29-Unadjusted Revenue, EBITDA, IAS 29-Unadjusted EBITDA, Free Cash Flow and Net Working Capital. These financial measures are not measures of financial performance in accordance with IFRS and may exclude items that are significant in understanding and assessing our financial results. Therefore, these measures should not be considered in isolation or as an alternative to profit/loss for the period or other measures of profitability, liquidity or performance under IFRS. You should be aware that the Company’s presentation of these measures may not be comparable to similarly titled measures used by other companies, which may be defined and calculated differently. We believe that these measures provide useful information to investors in understanding and evaluating our operating results in the same manner as our management and board of directors. In particular, we have included IAS 29-Unadjusted Revenue, IAS 29- Unadjusted Gross Contribution and IAS 29-Unadjusted EBITDA in this presentation because we believe their inclusion facilitates the understanding of Revenue, Gross Contribution and EBITDA restated in accordance with IAS 29 as well as our year on year growth and profitability guidance. See “Presentation of Financial and Other Information” in this presentation for a reconciliation of certain of these non-IFRS measures to the most directly comparable IFRS measure. Statement Regarding Unaudited Financial Information This presentation includes unaudited financial information as of and for the three and nine months ended September 30, 2024 and 2023, and as of December 31, 2023. The financial information has not been audited or reviewed by the Company’s auditors. The unaudited consolidated financial information include the accounts of the Company and its subsidiaries. All periods presented have been accounted for in conformity with IFRS and pursuant to the regulations of the SEC. Due to rounding, numbers presented throughout this presentation may not add up precisely to the totals provided and percentages may not precis ely reflect the absolute figures. 2 Disclaimer
Page 3
NOTES START FROM HERE AND GROW UP CONTENT BELOW THIS LINE CONTENT BELOW THIS LINE SUBTITLE BELOW THIS LINE TITLE CAN NOT GO ABOVE THIS LINE This presentation, the conference call webcast, press release and related communications include forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, Section 21E of the Securities Exchange Act of 1934, as amended and the Safe Harbor provisions of the US Private Securities Litigation Reform Act of 1995, and encompasses all statements, other than statements of historical fact contained in these communications, including but not limited to statements regarding (a) our future financial performance, including our revenue, operating expenses and our ability to achieve and maintain profitability; (b) our expectations regarding current and future GMV and EBITDA; (c) potential disruptions to our operations and supply chain that may result from (i) epidemics or natural disasters; (ii) global supply challenges; (iii) the ongoing conflicts in Ukraine and Syria, including their impact on Türkiye's border regions; (iv) changes in the competitive landscape in the industry in which the Company operates; (v) the high inflationary environment and/or (vi) currency devaluation; (d) the anticipated launch of new initiatives, businesses or any other strategic projects and partnerships; (e) our expectations and plans for short- and long-term strategy, including our anticipated areas of focus and investment, market expansion, product and technology focus, and projected growth and profitability; (f) our ability to respond to the ever-changing competitive landscape in the industry in which we operate; (g) our liquidity, substantial indebtedness, and ability to obtain additional financing; (h) our strategic goals and plans, including our relationships with existing customers, suppliers, merchants and partners, and our ability to achieve and maintain them; (i) our ability to improve our technology platform, customer experience and product offerings to attract and retain merchants and customers; (j) our ability to expand our base of Hepsiburada Premium members, and grow and externalize the services of our strategic assets; and (k) regulatory changes in the e-commerce law, corporate tax law and income tax law. These forward-looking statements can be identified by terminology such as “may”, “could”, “will,” “seek,” “expects,” “anticipates,” “aims,” “future,” “intends,” “plans,” “believes,” “estimates,” “targets”, “likely to” and similar statements. Among other things, quotations from management in this announcement, as well as our outlook and guidance, strategic and operational plans, contain forward-looking statements. These forward-looking statements are based on management’s current expectations. However, it is not possible for our management to predict all risks, nor can we assess the impact of all factors on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements we may make. These statements are neither promises nor guarantees but involve known and unknown risks, uncertainties and other important factors and circumstances that may cause Hepsiburada’s actual results, performance or achievements to be materially different from its expectations expressed or implied by the forward-looking statements, including conditions in the U.S. capital markets, negative global economic conditions, potential negative developments resulting from epidemics or natural disasters, other negative developments in Hepsiburada’s business or unfavorable legislative or regulatory developments. We caution you therefore against relying on these forward-looking statements, and we qualify all of our forward-looking statements by these cautionary statements. For a discussion of additional factors that may affect the outcome of such forward looking statements, see our 2023 annual report filed with the SEC on Form 20-F (File No. 001-40553), and in particular the “Risk Factors” section, as well as the other documents filed with or furnished to the SEC by the Company from time to time. Copies of these filings are available online from the SEC at www.sec.gov, or on the SEC Filings section of our Investor Relations website at https://investors.hepsiburada.com. These and other important factors could cause actual results to differ materially from those indicated by the forward-looking statements made in this press release. Any such forward-looking statements represent management’s estimates as of the date of this press release. These forward-looking statements should not be relied upon as representing the Company’s views as of any date subsequent to the date of this press release. All forward-looking statements in this press release are based on information currently available to the Company, and the Company and its authorized representatives assume no obligation to update these forward-looking statements in light of new information or future events. Accordingly, undue reliance should not be placed upon the forward-looking statements. 3 Forward Looking Statements
Page 4
Business Update
Page 5
NOTES START FROM HERE AND GROW UP CONTENT BELOW THIS LINE CONTENT BELOW THIS LINE SUBTITLE BELOW THIS LINE TITLE CAN NOT GO ABOVE THIS LINE Q3 2024 Results Major Milestone: First Positive Quarterly Operating Income Since IPO 5 Q3’21 Q4’21 Q1’22 Q2’22 Q3’22 Q4’22 Q1’23 Q2’23 Q3’23 Q4’23 Q1’24 Q2’24 Q3’24 -11.2% -10.4% -9.2% -7.2% -6.7% -2.2% -1.1% -0.3% -0.6% -0.6% -0.3% -0.1% 0.1% Operating Income/(Loss) as % of GMV Driving growth and delivering sustainable results First since IPO
Page 6
NOTES START FROM HERE AND GROW UP CONTENT BELOW THIS LINE CONTENT BELOW THIS LINE SUBTITLE BELOW THIS LINE TITLE CAN NOT GO ABOVE THIS LINE Q3 2024 Results (*): Excluding one-off item. One-off item in Q3’23 is the recording of USD 3,975,000 contribution amount from TurkCommerce towards the settlement of the two class action lawsuits. For additional details, please refer to our Form 6-K, furnished on December 5, 2023. Revenue in Q3’24 was TRY 12,241.6 million compared to TRY 12,036.6 million in Q3’23. Loss for Q3’24 was TRY 307.4 million an d for Q3’23 was TRY 285.5 million. Note: See “Certain Definitions” in the Appendix of this presentation for IAS 29-Unadjusted GMV, IAS 29-Unadjusted Gross Contribution and IAS 29-Unadjusted EBITDA definitions. GMV, IAS 29-Unadjusted GMV, Gross Contribution, IAS 29-Unadjusted Gross Contribution, EBITDA and IAS 29-Unadjusted EBITDA are non-IFRS figures. For reconciliations to the most comparable IFRS measures, please refer to the Appendix at the end of this presentation. 6 IAS 29-Unadjusted Gross Contribution Margin IAS 29-Unadjusted EBITDA as a % of GMV IAS 29-Unadjusted GMV Growth 12.4% +0.8 pp YoY 2.2% flat YoYQ3’24 Q3’24 69.9% excl. one-off(*) 10.3% 11.5% +2.1 pp YoY 1.2% +1.3 pp YoY Solid Q3 and 9M Results: Continued Upward Trajectory Gross Contribution Margin EBITDA as a % of GMVGMV Growth Guidance Guidance Adjusted for inflation excl. one-off(*) 9M’24 90.4% 9M’24 17.4% 12.5% +1.6 pp YoY 11.3% +1.9 pp YoY 2.3% +0.6 pp YoY excl. one-off(*) 1.0% +0.8 pp YoY excl. one-off(*)
Page 7
NOTES START FROM HERE AND GROW UP CONTENT BELOW THIS LINE CONTENT BELOW THIS LINE SUBTITLE BELOW THIS LINE TITLE CAN NOT GO ABOVE THIS LINE Q3 2024 Results Hepsiburada: Most Recommended E-Commerce Brand in Türkiye 7 Note: Figures are at September 30, 2024 or for Q3 2024 as relevant unless otherwise indicated. Growth figures are between Q3 2024 and Q3 2023 unless otherwise indicated. The year-over-year growth rates are calculated over full digit values. All other figures in single digits are rounded to the nearest digit. (1): (LTM) Active Customers are users (both unregistered users and members) who purchased at least one item listed on the pla tform within the 12-month period preceding the relevant date, including returns and cancellations. (2): As of November 30, 2024. (3): Number of Orders means the number of orders we received through our platform including returns and cancellations during the quarter. (4): Order Frequency means the average number of orders per Active Customer over a 12-month period preceding the relevant date. (5): According to the market research of FutureBright at the request of the Company. The NPS question is "How likely are you to recommend us on a scale from 0 to 10", and the calculation is to subtract the percentage of detractors (score 0 to 6) from the percentage of promoters (score 9 to 10). The score can be a number from -100 to 100. 12.3M Active Customers(1) Expanding Active Customers ~3.7M HB Premium Members(2) 32.0M Number of Orders(3) Increasing Customer Engagement 10.8 Order Frequency(4) ~100K Active Merchants Onboarding New Brands ~280M SKUs of Selection 75 Net Promoter Score(5) Highest NPS in the Turkish E-Commerce
Page 8
NOTES START FROM HERE AND GROW UP CONTENT BELOW THIS LINE CONTENT BELOW THIS LINE SUBTITLE BELOW THIS LINE TITLE CAN NOT GO ABOVE THIS LINE Q3 2024 Results Win With Loyalty: HB Premium Program Is A Key Factor In Customer Loyalty 84 HB Premium NPS(3) 9 points higher than HB NPS Stronger NPS Higher Retention 31% Higher monthly order frequency after joining the program(2) Increasing Adoption Strategic Priorities (1): As of November 30, 2024. (2): Comparison of average monthly order frequency of customers before and after joining HB Premium Program during Q3 2024. (3): According to the market research by FutureBright at the request of the Company. 8 ~3.7M HB Premium members(1) Partnership with Warner Bros. Discovery (acquired BluTV) Enriched Experience HB Premium Days “HB Premium Days” Campaign was held during 16-25th of July 4 M Products 130 M Visits 587K Orders with free shipment TRY 22 M Cash back earned 20K Merchants used HepsiAd
Page 9
NOTES START FROM HERE AND GROW UP CONTENT BELOW THIS LINE CONTENT BELOW THIS LINE SUBTITLE BELOW THIS LINE TITLE CAN NOT GO ABOVE THIS LINE Q3 2024 Results 9 (1): Based on data for the orders from retail (1P) and Marketplace (3P) operations. (2): Based on data for the orders from retail (1P) for Next Day Delivery. Data for Q3’24. (3): Based on data for the orders from retail (1P) and Marketplace (3P) operations delivered by HJ XL for parcels l arger than 40 deciliters. (4): According to our internal survey results. (5): Total volume from other retailers’ operations delivered by HepsiJet within HepsiJet’s total volume delivered. (6): Expansion of volume from other retailer’ operations in Q3’24 compared to Q3’23. HJ - % Total Parcels Delivered(1) Q3’23 Q2’24 Q3’24 67% 73% 74% +6.8pp Proven Service Excellence 88 NPS(4) in Q3’24 80% Next day performance(2) Q3’23 Q2’24 Q3’24 57% 68% 69% +12.4pp HJ XL - % Total Parcels Delivered(3) Strategic Priorities Differentiation With Superior Delivery Services; Offering HepsiJet Services Off-Platform HepsiJet’s External Customer Share Q3’23 Q3’24 24.8% 35.1% +10.3pp HJ – Volume Share of External Customers(5) (million parcels) 97% Off-platform clients’ volume growth in Q3’24 yoy(6)
Page 10
NOTES START FROM HERE AND GROW UP CONTENT BELOW THIS LINE CONTENT BELOW THIS LINE SUBTITLE BELOW THIS LINE TITLE CAN NOT GO ABOVE THIS LINE 10 Gaining Traction Q3’23 Q2’24 Q3’24 5.6% 8.1% 8.8% Affordability Solutions GMV Penetration(1) Total Lending Volume – LTM (TRY Billion)(3) • Largest non-bank BNPL solution in the market • Highest CR among other banks(4) with consumer finance loans • 10 partner banks for shopping loans(5) • 47% of total lending volume issued through partner banks • Up to 12 months maturity with BNPL • Up to 36 months maturity with shopping loan • Up to 36 months maturity with consumer finance loans 3.1x BNPL volume yoy in Q3’24 (1): Percentage represents total payments through BNPL, shopping loans and general purpose loans in GMV generated during the specified period. (2): Represents total number of orders where either BNPL, a shopping loan or a consumer finance loan was used over the last twelve months as of Q3 2024. (3): Represents total amount of loans given as BNPL, shopping loan, general purpose loan and consumer finance loan during the specified perio d. (4): Highest conversion rate when compared to 10 banks providing shopping loans on HB platform. (5): As of Q3 2024. (6): Company’s estimation for the full year of 2024, based on data published by Banking Regulation and Supervision Agency . Impact of general purpose loans Strategic Priorities 6.1% 6.5% 4.4 11.2 13.6 Q3’23 Q2’24 Q3’24 Differentiation With Financial Services: Our Affordability and Lending Solutions - Unmatched Proposition Target Market (2024E): US$40 bn(6) consumer loans Unmatched Proposition in the Market 8.8% GMV penetration in Q3’24
Page 11
NOTES START FROM HERE AND GROW UP CONTENT BELOW THIS LINE CONTENT BELOW THIS LINE SUBTITLE BELOW THIS LINE TITLE CAN NOT GO ABOVE THIS LINE (1): As of November 30, 2024. (2): Company’s estimate for the year 2024, based on data published by The Interbank Card Center (BKM). (3): Growth of total payment volume of off-platform retailers through one click checkout compared to Q2 2024. (4): Company’s estimate for the year 2024, based on data published by The Interbank Card Center (BKM) and The Ministry of Trade. 11 17.6M Hepsipay Wallet Customers(1) 2.1M HB prepaid cards issued(1) 21.1M cards stored at Hepsipay(1) Hepsipay Digital Wallet Strategic Priorities Differentiation With Financial Services: Hepsipay Is A Leading Payment Solutions Provider In Türkiye Hepsipay’s One Click Checkout Solution ~100% “Pay with Hepsipay” • TPV Growth QoQ(3) Target Market: US$263 bn(2) off-line payments with cards 127 Retailers already integrated • “Pay with Hepsipay”(1) Target Market: US$102 bn(4) total online payments
Page 12
NOTES START FROM HERE AND GROW UP CONTENT BELOW THIS LINE CONTENT BELOW THIS LINE SUBTITLE BELOW THIS LINE TITLE CAN NOT GO ABOVE THIS LINE 12 Legendary November Note: Based on preliminary results.
Page 13
NOTES START FROM HERE AND GROW UP CONTENT BELOW THIS LINE CONTENT BELOW THIS LINE SUBTITLE BELOW THIS LINE TITLE CAN NOT GO ABOVE THIS LINE Q4 2024 13 50% to 55% 1.8% to 2.0% Guidance Q4 2024 Outlook and FY 2024E: Continued Growth and Profitability FY 2024E around 75% 2.1% to 2.2% around +0.6pp YoY adjusted for inflation: around 13% (*): One-off item in Q3’23 is the recording of USD 3,975,000 contribution amount from TurkCommerce towards the settlement of the two class action lawsuits. For additional details, please refer to our Form 6-K, furnished on December 5, 2023. excl. one-off(*) IAS 29-Unadjusted EBITDA as % of GMV IAS 29-Unadjusted GMV growth
Page 14
NOTES START FROM HERE AND GROW UP CONTENT BELOW THIS LINE CONTENT BELOW THIS LINE SUBTITLE BELOW THIS LINE TITLE CAN NOT GO ABOVE THIS LINE 14 Kaspi.kz Expects to Acquire Majority Stake in Hepsiburada Transaction Summary • On October 17, 2024 Kaspi.kz signed a Stock Purchase Agreement with members of the Doğan Family to purchase Class A and Class B shares representing 65.41% of the total outstanding Class A and Class B shares of Hepsiburada. • The aggregate consideration for the transaction is approximately $1,127 million. Closing Conditions • The transaction remains subject to customary closing conditions and receipt of regulatory approvals by the Central Bank of the Republic of Türkiye, Banking Regulation and Supervision Agency and Information Technologies and Communication Authority in Türkiye. • Approval from the Turkish Competition Authority was granted on November 19, 2024. • The transaction is expected to close in the first quarter of 2025.
Page 15
Financial Update
Page 16
NOTES START FROM HERE AND GROW UP CONTENT BELOW THIS LINE CONTENT BELOW THIS LINE SUBTITLE BELOW THIS LINE TITLE CAN NOT GO ABOVE THIS LINE Q3 2024 Results (*): One-off item in Q3’23 is the recording of USD 3,975,000 contribution amount from TurkCommerce towards the settlement of the two class action lawsuits. For additional details, please refer to our Form 6-K, furnished on December 5, 2023. Revenue in Q3’24 was TRY 12,241.6 million compared to TRY 12,036.6 million in Q3’23. Loss is for Q3’24 was TRY 307.4 million and for Q3’23 was TRY 285.5 million. Note: See “Certain Definitions” in the Appendix of this presentation for GMV, EBITDA and Gross Contribution Margin definitions. EBI TDA is a non-IFRS measure. For reconciliation to the most comparable IFRS measure, please refer to the Appendix at the end of this presentation. 16 Gross Contribution Margin EBITDA as a % of GMVGMV 10.3% YoY 11.5% +2.1 pp YoY 1.2% +1.3 pp YoY Q3’24 9M’24 TRY 42.3 Bn excl. one-off(*) TRY 122.0 Bn 11.3% +1.9 pp YoY 1.0% +0.8pp YoY17.4% YoY excl. one-off(*) Solid Q3 Results and 9M Performance +0.9 pp YoY +0.6 pp YoY
Page 17
NOTES START FROM HERE AND GROW UP CONTENT BELOW THIS LINE CONTENT BELOW THIS LINE SUBTITLE BELOW THIS LINE TITLE CAN NOT GO ABOVE THIS LINE Q3 2024 Results (*): Excluding one-off item. One-off item in Q3’23 is the recording of USD 3,975,000 contribution amount from TurkCommerce towards the settlement of the two class action lawsuits. For additional details, please refer to our Form 6-K, furnished on December 5, 2023. See “Certain Definitions” in the Appendix of this presentation for GMV, EBITDA and Gross Contribution Margin definitions. EBITDA is a non-IFRS measure. For reconciliation to the most comparable IFRS measure, please refer to the Appendix at the end of this presentation. Revenue in Q3’24 was TRY 12,241.6 million compared to TRY 12,036.6 million in Q3’23. Loss for Q3’24 was TRY 307.4 million and for Q3’23 was TRY 285.5 million. (1): Gross Contribution as a % of GMV in Q3 2024 is the result of TRY 4,872.1 million divided by TRY 42.3 billion. For further information, please refer to our Form 6-K, furnished on December 10, 2024. (2): Hepsiburada reports its financial information in Turkish Lira (TRY). The USD figures presented on this slide have been translated for the convenience of the reader at an exchange rate of 34.0900 TRY/USD which is the announced buying rate by the Central Bank of Türkiye for September 30, 2024. 38.4 42.3 Q3’23 Q3’24 10.3% GMV Gross Contribution(1) EBITDA Q3’23 Q3’24 9.4% 11.5% 2.1pp Q3’23 Q3’24 -0.1%(*) 1.2% 1.3pp(*) (TRY billion) (as % of GMV) (as % of GMV) $1.24 Bn$1.13 Bn $142.9 Mn$105.8 Mn $14.9 Mn$3.9 MnUSD equivalent(2) TRY 4.9 BnTRY 3.6 Bn TRY 507.8 MnTRY 131.4 Mn Double-digit GMV growth Continued uptrend 0.9pp 0.3% Q3 2024: Solid Performance In A Continued Tough Macroeconomic Environment 17 Improvement mainly driven by scaling off-platform logistics Operating Income Q3’23 Q3’24 -1.1%(*) 0.1% 1.1pp(*) (as % of GMV) $1.0 Mn($7.2 Mn) TRY 32.4 Mn(TRY 245.1 Mn) First time positive in a quarter since IPO 0.7pp -0.6% Excl. one-off Excl. one-off
Page 18
NOTES START FROM HERE AND GROW UP CONTENT BELOW THIS LINE CONTENT BELOW THIS LINE SUBTITLE BELOW THIS LINE TITLE CAN NOT GO ABOVE THIS LINE Q3 2024 Results Note: See “Certain Definitions” in the Appendix of this presentation for GMV, Number of Orders and Order Frequency definitions. (1): The total number of orders we received through our platform including returns and cancellations. (2): Frequency means the average number of orders per Active Customer over a 12-month period preceding the relevant date. (3): In Q1 2024, we made several reclassifications among the categories under various domains to better reflect the electronics and n on-electronics split of our GMV. Accordingly, the consumer electronics (non-TV) category is reclassified to Mobile (from Books and Hobbies), automobile accessories and parts category to Technology (from Home and Garden), gaming co nsoles to Technology (from Books and Hobbies) and Tablet to Mobile (from Technology). 1P GMV 3P GMV (TRY billion) 34.5% 65.5% Q3’23 29.6% 70.4% Q3’24 38.4 42.3 10.3% GMV Breakdown(3) Non-Electronics GMV Electronics GMV (TRY billion) 18 32.0M Number of Orders(1) 19% YoY 5% YoY excl. digital products Q3’24: Solid KPIs 10.8 Order Frequency(2) 16% YoY 9% YoY excl. digital products +4.9pp shift to Marketplace 40.3% 59.7% Q3’23 42.9% 57.1% Q3’24 38.4 42.3 +2.6pp shift to non-electronics Rising Non-Electronics Share In GMV In Line With Our Strategy
Page 19
NOTES START FROM HERE AND GROW UP CONTENT BELOW THIS LINE CONTENT BELOW THIS LINE SUBTITLE BELOW THIS LINE TITLE CAN NOT GO ABOVE THIS LINE Q3 2024 ResultsNote: See “Certain Definitions” in the Appendix of this presentation for a definition of Gross Contribution Margin. (1): Other revenue includes Hepsiburada Premium, Hepsi Lojistik, Hepsipay and other revenue. (1) Q3’23 Q3’24 9M’23 9M’24 9.4% 11.5% 9.4% 11.3% +2.1pp +1.9pp as a % of GMV Gross Contribution Margin 19 Revenue Breakdown Revenue (TRY million) 32,262 36,610 9M’23 9M’24 +13.5% 8,838 1,573 1,215 410 Q3’23 8,041 1,668 1,786 746 Q3’24 12,037 12,242 +1.7% Revenue Diversification Contributing To Margin Improvement Sales of goods (1P) Marketplace (3P) Delivery services Other (1)
Page 20
NOTES START FROM HERE AND GROW UP CONTENT BELOW THIS LINE CONTENT BELOW THIS LINE SUBTITLE BELOW THIS LINE TITLE CAN NOT GO ABOVE THIS LINE Q3 2024 Results (*): Excluding one-off item. One-off item in Q3’23 is the recording of USD 3,975,000 contribution amount from TurkCommerce towards the settlement of the two class action lawsuits. For additional details, please refer to our Form 6-K, furnished on December 5, 2023. Loss for Q3’24 was TRY 307.4 million and for Q3’23 was TRY 285.5 million. EBITDA is a non-IFRS measures. For reconciliations to the most comparable IFRS measures, please refer to the appendix at the end of this presentation. See “Certain Definitions” in the appendix of this presentation for EBITDA and EBITDA as a percentage of GMV definition. Q3’23 Q3’24 EBITDA as a % of GMV Bridge EBITDA % of GMV 2.1% Gross contribution -0.1% Advertising exp. -0.3% Shipping and packaging exp. -0.4% Payroll and outsource staff exp. 0.0% Technology Expenses 0.0% Other OPEX, net EBITDA % of GMV 1.2% -0.1% 0.3% EBITDA as a % of GMV 20 Rising Profitability Through Higher Gross Contribution -0.5% Q3’23 Q4’23 Q1’24 Q2’24 Q3’24 -0.1% 0.3% 0.8% 1.1% 1.2% +1.3pp(*) 0.3% Excl. one-off(*) Excl. one-off(*) Excl. one-off(*)
Page 21
NOTES START FROM HERE AND GROW UP CONTENT BELOW THIS LINE CONTENT BELOW THIS LINE SUBTITLE BELOW THIS LINE TITLE CAN NOT GO ABOVE THIS LINE Q3 2024 Results 21 (TRY million) (TRY million) % of GMV 3,181 1,938 2,494 3,398 Q3’23 Q3’24 9M’23 9M’24 (1): Free Cash Flow is a non-IFRS measure defined as net cash provided by operating activities less capital expenditures plus proceeds from sale of property an d equipment. For reconciliation to the most comparable IFRS measure, please refer to the Appendix at the end of this presentation. (2): Capex is the sum of purchases of property and equipment and intangible assets and proceeds from the sale of property and equipment. CAPEX(2) Cash Flow From Operating Activities -0.9% -0.8% -1.1% -1.1% Q3’23 Q3’24 9M’23 9M’24 TRY1,305 M 2,831 1,579 1,390 2,093 Q3’23 Q3’24 9M’23 9M’24 Free Cash Flow(1) TRY359 M Strong Cash Generation in 9M 2024 on Continued Cash Discipline
Page 22
NOTES START FROM HERE AND GROW UP CONTENT BELOW THIS LINE CONTENT BELOW THIS LINE SUBTITLE BELOW THIS LINE TITLE CAN NOT GO ABOVE THIS LINE Q3 2024 Results 2.1pp improvement in Gross Contribution Margin First positive quarterly Operating Income since IPO Double- digit real GMV growth in Q3’24 Uptrend in EBITDA continued, reaching 1.2% of GMV in Q3’24 Oct’24: Change of control in ownership to Kaspi.kz (subject to customary closing conditions) 5 4 3 2 1 22 Q3 2024: Key Takeaways
Page 23
Q&A
Page 24
Appendix
Page 25
NOTES START FROM HERE AND GROW UP CONTENT BELOW THIS LINE CONTENT BELOW THIS LINE SUBTITLE BELOW THIS LINE TITLE CAN NOT GO ABOVE THIS LINE Q3 2024 Results Summary Financials 25 Source: Company Data Note: See “Certain Definitions” in the Appendix of definitions of Gross Contribution, Gross Contribution Margin, EBITDA and E BITDA as % of GMV. (1): Gross Contribution represented as a percentage of GMV. (2): Operating Expenses also includes cost of inventory sold. (3): EBITDA is a non-IFRS measure. For reconciliations to the most comparable IFRS measures, please refer to the Appendix at the end of this presentation. Amounts expressed in million Turkish lira (TRY) in terms of the purchasing power of the TRY at September 30, 2024. (unaudited) (unaudited) (unaudited) (unaudited) TRY million Q3’24 Q3’23 YoY 9M’24 9M’23 YoY Revenues 12,241.6 12,036.6 1.7% 36,610.3 32,262.2 13.5% Gross Contribution 4,872.1 3,607.6 35.1% 13,773.7 9,717.9 41.7% Gross Contribution margin(1) 11.5% 9.4% 2.1 pp 11.3% 9.4% 1.9 pp Net Operating Expenses(2) (Opex) (12,209.2) (12,281.6) (0.6%) (36,728.6) (32,940.8) 11.5% Net Opex as a % of GMV (28.8%) (32.0%) 3.2pp (30.1%) (31.7%) 1.6pp Operating Income/ (Loss) 32.4 (245.1) n.m. (118.3) (678.6) (82.6%) Income/ (Loss) for the Period (307.4) (285.5) 7.7% (880.6) 977.7 (190.1%) EBITDA(3) 507.8 131.4 286.5% 1,270.5 434.8 192.2% EBITDA as a % of GMV 1.2% 0.3% 0.9pp 1.0% 0.4% 0.6pp
Page 26
NOTES START FROM HERE AND GROW UP CONTENT BELOW THIS LINE CONTENT BELOW THIS LINE SUBTITLE BELOW THIS LINE TITLE CAN NOT GO ABOVE THIS LINE 26 Consolidated Statements of Comprehensive Income/(Loss) (Amounts expressed in thousands of Turkish lira (TRY) in terms of the purchasing power of the TRY at 30 September 2024) Note: The financial information for the three and nine months ended September 30, 2024 and 2023 has not been audited or reviewed by the Company’s auditors. The unaudited consolidated financial statements include the accounts of the Company and its subsidiaries. All periods presented have been accounted for in conformity with International Financial Reporting Standards (“IFRS”) and pursuant to the regulations of the SEC. Consolidated Statements of Comprehensive Income/(Loss) Nine Months Ended Three Months Ended unaudited unaudited unaudited unaudited 1 January - 30 September 2024 1 January - 30 September 2023 1 July - 30 September 2024 1 July - 30 September 2023 Revenues 36,610,265 32,262,212 12,241,606 12,036,566 Cost of inventory sold (22,836,568) (22,544,334) (7,369,502) (8,428,943) Shipping and packaging expenses (4,169,010) (2,987,556) (1,384,003) (1,147,303) Payroll and outsource staff expenses (4,230,616) (3,317,577) (1,504,762) (1,212,163) Advertising expenses (2,758,430) (2,133,313) (1,004,795) (864,102) Technology expenses (470,805) (383,216) (151,110) (136,919) Depreciation and amortization (1,388,824) (1,113,388) (475,361) (376,435) Other operating expenses (1,095,287) (1,013,251) (390,366) (349,380) Other operating income 220,964 551,817 70,683 233,615 Operating income/(loss) (118,311) (678,606) 32,390 (245,064) Financial income 2,445,831 3,771,090 824,348 752,284 Financial expenses (4,683,428) (3,302,982) (1,620,957) (1,346,379) Monetary gains/losses 1,475,340 1,188,177 456,858 553,693 Income/(loss) before income taxes (880,568) 977,679 (307,361) (285,466) Taxation on income - - - - Income/(loss) for the period (880,568) 977,679 (307,361) (285,466)
Page 27
NOTES START FROM HERE AND GROW UP CONTENT BELOW THIS LINE CONTENT BELOW THIS LINE SUBTITLE BELOW THIS LINE TITLE CAN NOT GO ABOVE THIS LINE Consolidated Balance Sheets (Amounts expressed in thousands of Turkish lira (TRY) in terms of the purchasing power of the TRY at 30 September 2024) Note: The financial information as of September 30, 2024 and December 31, 2023 has not been audited or reviewed by the Company’s auditors. The unaudited consolidated financial statements include the accounts of the Company and its subsidiaries. All periods presented have been accounted for in conformity with International Financial Reporting Standards (“IFRS”) and pursuant to the regulations of the SEC. 27 Consolidated Balance Sheets 30 September 2024 31 December 2023 Assets: Current assets: Cash and cash equivalents 4,256,239 7,472,319 Restricted cash 117,563 227,311 Financial investments 3,873,461 2,340,525 Trade receivables 3,338,213 3,224,340 Due from related parties 7,143 12,475 Loan receivables 543,211 - Inventories 6,911,430 5,386,845 Contract assets 35,936 30,475 Other current assets 776,673 1,174,259 Total current assets 19,859,869 19,868,549 Non-current assets: Property and equipment 720,076 683,028 Intangible assets 2,752,043 2,518,288 Right of use assets 1,065,354 768,322 Loan receivables 60,643 1,086 Other non-current assets 19,465 45,812 Total non-current assets 4,617,581 4,016,536 Total assets 24,477,450 23,885,085 Liabilities: Current liabilities: Bank borrowings 950,543 249,265 Lease liabilities 102,436 210,004 Wallet deposits 164,236 255,977 Trade payables and payables to merchants 14,888,003 14,350,927 Due to related parties 13,338 6,302 Provisions 33,815 111,036 Employee benefit obligations 326,062 393,194 Contract liabilities and merchant advances 1,916,107 1,935,286 Other current liabilities 1,113,938 1,027,633 Total current liabilities 19,508,478 18,539,624 Non-current liabilities: Bank borrowings - 3,816 Lease liabilities 646,303 165,505 Employee benefit obligations 128,328 141,680 Other non-current liabilites 526,666 547,292 Total non-current liabilities 1,301,297 858,293 Total Liabilities 20,809,775 19,397,917 Equity: Share capital 677,482 677,482 Other capital reserves 927,449 866,434 Share premiums 19,677,153 19,677,153 Treasury shares (230,749) (230,749) Accumulated deficit (17,383,660) (16,503,152) Total equity 3,667,675 4,487,168 Total equity and liabilities 24,477,450 23,885,085 unaudited unaudited
Page 28
NOTES START FROM HERE AND GROW UP CONTENT BELOW THIS LINE CONTENT BELOW THIS LINE SUBTITLE BELOW THIS LINE TITLE CAN NOT GO ABOVE THIS LINE Consolidated Statements of Cash Flows (Amounts expressed in thousands of Turkish lira (TRY) in terms of the purchasing power of the TRY at 30 September 2024) 28 Consolidated Statements of Cash Flows Note: The financial information for the nine months ended September 30, 2024 and 2023 has not been audited or reviewed by the Company’s auditors. The unaudited consolidated financial statements include the accounts of the Company and its subsidiaries. All periods presented have been accounted for in conformity with International Financial Reporting Standards (“IFRS”) and pursuant to the regulations of the SEC. (unaudited) (unaudited) 1 January – 30 September 2024 1 January – 30 September 2023 Income/(loss) before income taxes (880,568) 977,680 Adjustments to reconcile income/(loss) before income taxes to cash flows from operating activities: 6,200,967 4,922,793 Interest and commission expenses 4,419,307 2,407,128 Depreciation and amortization 1,388,824 1,113,388 Interest income on time deposits (620,936) (428,043) Interest income on financial investments (2,322) - Interest income on credit sales (877,774) (402,155) Provision for unused vacation liability 35,125 94,550 Provision for personnel bonus 238,381 208,055 Provision for legal cases 11,549 13,170 Provision for doubtful receivables 122,256 43,276 Provision for impairment of trade goods, net 29,476 137,375 Provision for post-employment benefits 48,875 59,304 Provision for share based payment 61,016 84,145 Adjustment for impairment loss of financial investments (343,120) (296,660) Provision competition board penalty - (171,984) Provision for Settlement of Legal Proceedings - 21,410 Provision for Turkish Capital Markets Board fee 2,162 43,818 Contribution income for settlement - (162,564) Net foreign exchange differences (403,056) (1,488,913) Change in provisions due to inflation (181,423) (328,693) Monetary effect on non-operating activities 2,272,627 3,976,186 Changes in working capital Change in trade payables and payables to merchants 724,005 90,456 Change in inventories (1,898,016) (1,846,175) Change in trade receivables (237,774) (825,018) Change in contract liabilities and merchant advances (74,711) 15,430 Change in contract assets (5,461) (10,348) Change in other liabilities (26,063) (28,205) Change in other assets and receivables (69,087) 6,528 Change in due from related parties 5,333 (2,710) Change in due to related parties 7,036 (2,720) Post-employment benefits paid (21,810) (25,658) Payments for concluded litigation (63,262) (532,444) Payments for personnel bonus (256,627) (238,704) Payments for unused vacation liabilities (6,177) (6,978) Collections of doubtful receivables - (224) Net cash provided by operating activities 3,397,785 2,493,703 Investing activities: Purchases of property and equipment and intangible assets (1,319,291) (1,121,860) Proceeds from sale of property and equipment 14,171 18,257 Purchase of financial instruments (9,540,307) (1,783,933) Proceeds from sale of financial investment 7,745,450 919,821 Interest received on credit sales 970,512 538,073 Interest income on time deposits and financial instruments 618,182 272,206 Net cash used in investing activities (1,511,283) (1,157,436) Financing activities: Proceeds from borrowings 2,064,848 625,132 Repayment of borrowings (1,261,709) (308,223) Interest and commission paid (4,099,753) (2,323,177) Lease payments (279,737) (284,605) Net cash used in financing activities (3,576,351) (2,290,873) Net increase/(decrease) in cash and cash equivalents (1,689,849) (954,606) Cash and cash equivalents at 1 January 7,471,184 11,774,645 Inflation effect on cash and cash equivalents (1,566,347) (3,792,571) Effects of exchange rate changes on cash and cash equivalents and restricted cash 37,361 1,474,671 Cash and cash equivalents at 30 September 4,252,349 8,502,139
Page 29
NOTES START FROM HERE AND GROW UP CONTENT BELOW THIS LINE CONTENT BELOW THIS LINE SUBTITLE BELOW THIS LINE TITLE CAN NOT GO ABOVE THIS LINE Q3 2024 Results 29 EBITDA Amounts expressed in million of Turkish lira (TRY) in terms of the purchasing power of the TRY at September 30, 2024. (TRY million) Three months ended September 30, Nine months ended September 30, 2024 2023 2024 2023 Income/ (loss) for the period (307.4) (285.5) (880.6) 977.7 Taxation on income - - - - Financial income 824.3 752.3 2,445.8 3,771.1 Financial expenses (1,621.0) (1,346.4) (4,683.4) (3,303.0) Depreciation and amortization (475.4) (376.4) (1,388.8) (1,113.4) Monetary gains 456.9 553.7 1,475.3 1,188.2 EBITDA 507.8 131.4 1,270.5 434.8 For additional details on the use of non-IFRS financial measures and a reconciliation to IFRS, please refer to our Form 6-K, furnished on December 10, 2024. Non-IFRS Metrics Reconciliation (I/V)
Page 30
NOTES START FROM HERE AND GROW UP CONTENT BELOW THIS LINE CONTENT BELOW THIS LINE SUBTITLE BELOW THIS LINE TITLE CAN NOT GO ABOVE THIS LINE Q3 2024 Results 30 IAS 29-Unadjusted EBITDA (TRY million) Three months ended September 30, 2024 Reversal of IAS 29 Adjustment IAS 29 Unadjusted 2023 Reversal of IAS 29 Adjustment IAS 29 Unadjusted 2024 2023 Income / (loss) for the period (307.4) (166.0) (141.4) (285.5) (444.7) 159.2 Taxation on income - - - - - - Financial income 824.3 15.1 809.2 752.3 272.6 479.7 Financial expenses (1,621.0) (13.9) (1,607.1) (1,346.4) (504.7) (841.7) Depreciation and amortization (475.4) (230.5) (244.9) (376.4) (253.7) (122.7) Monetary gains 456.9 456.9 - 553.7 553.7 - IAS 29-Unadjusted EBITDA 507.8 (393.5) 901.3 131.4 (512.5) 643.9 Amounts expressed in million of Turkish lira (TRY). Non-IFRS Metrics Reconciliation (II/V) For additional details on the use of non-IFRS financial measures and a reconciliation to IFRS, please refer to our Form 6-K, furnished on December 10, 2024.
Page 31
NOTES START FROM HERE AND GROW UP CONTENT BELOW THIS LINE CONTENT BELOW THIS LINE SUBTITLE BELOW THIS LINE TITLE CAN NOT GO ABOVE THIS LINE Q3 2024 Results 31 IAS 29-Unadjusted EBITDA (TRY million) Nine months ended September 30, 2024 Reversal of IAS 29 Adjustment IAS 29 Unadjusted 2023 Reversal of IAS 29 Adjustment IAS 29 Unadjusted 2024 2023 Income / (loss) for the period (880.6) (671.4) (209.2) 977.7 (82.7) 1,060.4 Taxation on income - - - - - - Financial income 2,445.8 256.5 2,189.3 3,771.1 1,708.5 2,062.6 Financial expenses (4,683.4) (408.6) (4,274.8) (3,303.0) (1,446.2) (1,856.8) Depreciation and amortization (1,388.8) (741.0) (647.8) (1,113.4) (774.2) (339.2) Monetary gains 1,475.3 1,475.3 - 1,188.2 1,188.2 - IAS 29-Unadjusted EBITDA 1,270.5 (1,253.5) 2,524.0 434.8 (759.0) 1,193.8 For additional details on the use of non-IFRS financial measures and a reconciliation to IFRS, please refer to our Form 6-K, furnished on December 10, 2024. Amounts expressed in million of Turkish lira (TRY). Non-IFRS Metrics Reconciliation (III/V)
Page 32
NOTES START FROM HERE AND GROW UP CONTENT BELOW THIS LINE CONTENT BELOW THIS LINE SUBTITLE BELOW THIS LINE TITLE CAN NOT GO ABOVE THIS LINE Q3 2024 Results REVENUES GROSS CONTRIBUTION Amounts expressed in million of Turkish lira (TRY). For additional details on the use of non-IFRS financial measures and a reconciliation to IFRS, please refer to our Form 6-K, furnished on December 10, 2024. (TRY million) Three months ended September 30, Nine months ended September 30, 2024 2023 2024 2023 Revenues 12,241.6 12,036.6 36,610.3 32,262.2 Reversal of IAS 29 adjustment 336.8 4,429.2 3,908.7 14,375.2 IAS 29-Unadjusted Revenues 11,904.8 7,607.4 32,701.6 17,887.0 (TRY million) Three months ended September 30, Nine months ended September 30, 2024 2023 2024 2023 Revenues 12,241.6 12,036.6 36,610.3 32,262.2 Cost of inventory sold (7,369.5) (8,428.9) (22,836.6) (22,544.3) Gross Contribution 4,872.1 3,607.6 13,773.7 9,717.9 Reversal of IAS 29 adjustment (233.8) 791.0 78.1 3,422.3 IAS 29-Unadjusted Gross Contribution 5,105.9 2,816.6 13,695.6 6,295.6 32 Non-IFRS Metrics Reconciliation (IV/V)
Page 33
NOTES START FROM HERE AND GROW UP CONTENT BELOW THIS LINE CONTENT BELOW THIS LINE SUBTITLE BELOW THIS LINE TITLE CAN NOT GO ABOVE THIS LINE Q3 2024 Results Free Cash Flow Net Working Capital Amounts expressed in million of Turkish lira (TRY) in terms of the purchasing power of the TRY at September 30, 2024. (TRY million) As of September 30, 2024 As of December 31, 2023 Current assets 19,859.9 19,868.5 Cash and cash equivalents (4,256.2) (7,472.3) Financial investments (3,873.5) (2,340.5) Current liabilities (19,508.5) (18,539.6) Bank borrowings, current 950.5 249.3 Lease liabilities, current 102.4 210.0 Net Working Capital (6,725.3) (8,024.6) For additional details on the use of non-IFRS financial measures and a reconciliation to IFRS, please refer to our Form 6-K, furnished on December 10, 2024. (TRY million) Three months ended September 30, Nine months ended September 30, 2024 2023 2024 2023 Net cash provided by operating activities 1,937.8 3,180.6 3,397.8 2,493.7 Capital expenditures (367.1) (365.6) (1,319.3) (1,121.9) Proceeds from the sale of property and equipment 8.3 16.1 14.2 18.3 Free Cash Flow 1,579.0 2,831.0 2,092.7 1,390.1 33 Non-IFRS Metrics Reconciliation (V/V)
Page 34
NOTES START FROM HERE AND GROW UP CONTENT BELOW THIS LINE CONTENT BELOW THIS LINE SUBTITLE BELOW THIS LINE TITLE CAN NOT GO ABOVE THIS LINE Q3 2024 Results 34 We provide a number of key operating performance indicators used by our management and often used by competitors in our industry. We define certain terms used in this presentation as follows: GMV as gross merchandise value which refers to the total value of orders/products sold through our platform over a given period of time (including value added tax (“VAT”) without deducting returns and cancellations), including cargo income (shipping fees related to the products sold through our platform) and excluding other service revenues and transaction fees charged to our merchants; Marketplace GMV as total value of orders/products sold through our Marketplace over a given period of time (including VAT without deducting returns and cancellations), including cargo income (shipping fees related to the products sold through our platform) and excluding other service revenues and transaction fees charged to our merchants; Share of Marketplace GMV as the portion of GMV sold through our Marketplace represented as a percentage of our total GMV; IAS 29-Unadjusted GMV as GMV presented on an unadjusted for inflation basis; IAS 29-Unadjusted Revenue as Revenue presented on an unadjusted for inflation basis; Gross Contribution as revenues less cost of inventory sold; IAS 29-Unadjusted Gross Contribution as Gross Contribution presented on an unadjusted for inflation basis; Gross Contribution margin as Gross Contribution represented as a percentage of GMV; EBITDA as profit or loss for the period plus taxation on income less financial income plus financial expenses, plus depreciation and amortization plus monetary gains/losses; IAS 29-Unadjusted EBITDA as EBITDA presented on an unadjusted for inflation basis; IAS 29-Unadjusted EBITDA as a percentage of GMV as IAS 29-Unadjusted EBITDA represented as a percentage of IAS 29-Unadjusted GMV; Free Cash Flow as net cash provided by operating activities less capital expenditures plus proceeds from sale of property and equipment; Number of Orders as the number of orders we received through our platform including returns and cancellations; (Order) Frequency are to the average number of orders per Active Customer over a 12-month period preceding the relevant date; Active Merchants as merchants who sold at least one item within the 12-month period preceding the relevant date, including returns and cancellations; and Active Customers are users (both unregistered users and members) who purchased at least one item within the 12-month period preceding the relevant date, including returns and cancellations. Digital products are non-cash games on our platform, such as sweepstakes and gamified lotteries, game pins and codes, gift vouchers, and the first monthly payment of Hepsiburada Premium membership subscription. Certain Definitions