D-MARKET Elektronik Hizmetler ve Ticaret AS · NASDAQ:HEPS
D-MARKET Elektronik Hizmetler ve Ticaret AS — D-Market Electronic Services & Trading (Hepsiburada) — Q2 2024 Earnings Presentation
32 slides from D-MARKET Elektronik Hizmetler ve Ticaret AS's earnings presentation, Sep 11, 2024
Slide 1: Q2 / H1 2024 Results Presentation
Q2 / H1 2024 Results Presentation September 11, 2024
Slide 2: Disclaimer
Disclaimer 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
Slide 3: Forward Looking Statements
Forward Looking Statements 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 S
Slide 4: Business Update
Business Update hepsiburada
Slide 5: Continued Upward Trajectory in Q2 / H1 2024
Continued Upward Trajectory in Q2 / H1 2024 IAS 29-Unadjusted GMV IAS 29-Unadjusted EBITDA H1 2024 Performance IAS 29-Unadjusted (TRY billion) (TRY million) ~420 bps (as % of GMV) above ~40 bps the 105%YoY 79.2% above guidance 2.0% 2.4% higher end of GMV growth 33.1 guidance range 787.4 1.5%(*) +
Slide 6: Hepsiburada: Most Recommended E-Commerce Brand in Türkiye
Hepsiburada: Most Recommended E-Commerce Brand in Türkiye Customers Selection 12.1M 3.0M 264M Active HB Premium SKUs Customers(1) Members(2) 36% YoY +61K YoY Order & Frequency Merchants 36.7M 10.6 75 ~101K Number of Order Active Orders(3) Frequency(4) NPS(5) Merchants in Q2‘24 33% YoY 23% YoY -0.3K
Slide 7: Win With Loyalty: HB Premium Program Is A Key Factor In Customer Loyalty
Win With Loyalty: HB Premium Program Is A Key Factor In Customer Loyalty Strategic Priorities Post Q2 2024 Strong NPS(1) Higher Frequency Enhanced Content Growing Base Win with loyalty: New partnership Hepsiburada Premium 84 36% with HB Premium NPS(1) Higher monthly order 9 points higher than HB NPS
Slide 8: Differentiation With Superior Delivery Services
Differentiation With Superior Delivery Services: Service Excellence Brings HepsiJet Further Market Penetration Strategic Priorities Proven Service Excellence Innovative Delivery Methods HJ - % Total Parcels Delivered(1) HJ XL - % Total Parcels Delivered(3) 6.8pp 8.9pp 73% 63% 68% 68% 59% 66% Q2’23 Q
Slide 9: Differentiation With Financial Services
Differentiation With Financial Services: Our Diverse Solution Set Is Gaining Traction Strategic Priorities Affordability Solutions Affordability Solutions GMV Penetration(1) 8.1% 5.8% 5.0% 6.1% 1.3M • Largest non-bank BNPL solution in the market 4.9% Orders with BNPL & shopping loan(2) • Highest CR
Slide 10: Hepsipay Is A Leading Payment Solutions Provider In Türkiye
Differentiation With Financial Services: Hepsipay Is A Leading Payment Solutions Provider In Türkiye Strategic Priorities Hepsipay Digital Wallet Auto Top-Up Feature LIVE! 16.7M Hepsipay Wallet Base(1) 1.7M HB prepaid cards issued(1) 19.5M cards stored at Hepsipay(1) Tops-up wallet automatically wit
Slide 11: Offering Our Services Off-Platform
Offering Our Services Off-Platform: HepsiJet and Hepsipay Continue Expanding to Third Parties Strategic Priorities HepsiJet’s External Customer Share Hepsipay’s One Click Checkout Solution HJ – Volume of External Customers(1) (million parcels) 2.0x 35.9% 2.8x 9.1 volume share of • “Pay with Hepsipay
Slide 12: Q3 2024 Guidance: Continued Profitable Growth
Q3 2024 Guidance: Continued Profitable Growth Guidance Q3 2024 IAS 29-Unadjusted GMV Growth (YoY) 70% - 75% IAS 29-Unadjusted around 2.2% EBITDA as % of GMV Q2 2024 Results 12
Slide 13: Financial Update
Financial Update hepsiburada
Slide 14: Solid Q2 Results; Strong First Half Performance
Solid Q2 Results; Strong First Half Performance GMV Gross Contribution Margin EBITDA as a % of GMV Q2’24 TRY 33.8 Bn 12.0% 1.1% +0.3 pp YoY 3.9% YoY +2.6 pp YoY +0.9 pp excl. YoY one-off (*) H1’24 TRY 73.1 Bn 11.2% 1.0% +0.5 pp YoY 21.6% YoY +1.8 pp YoY +0.8 pp YoY excl. one-off(*) (*): Excluding on
Slide 15: Q2 2024: Solid Performance In A Tough Macroeconomic Environment
Q2 2024: Solid Performance In A Tough Macroeconomic Environment GMV Gross Contribution(1) EBITDA US$ equivalent(2) $0.99 Bn $1.03 Bn $92.5 Mn $123.3 Mn $8.1 Mn $11.8 Mn TRY 3.0 Bn TRY 4.0 Bn TRY 265.3 Mn TRY 386.6 Mn 3.9% 2.6pp 0.9pp(*) (TRY billion) (as % of GMV) (as % of GMV) 33.8 12.0% 0.3pp 1.1%
Slide 16: Rising Non-Electronics Share In GMV In Line With Our Strategy
Rising Non-Electronics Share In GMV In Line With Our Strategy Q2’24: Solid KPIs GMV Breakdown(3) (TRY billion) 1P GMV (TRY billion) Non-Electronics GMV 36.7M 3P GMV Electronics GMV Number of Orders(1) 3.9% +5.1pp shift to non-electronics 33% YoY 33.8 33.8 32.5 32.5 6% YoY 28.9% excl. digital product
Slide 17: Revenue Diversification Contributing To Margin Improvement
Revenue Diversification Contributing To Margin Improvement Revenue Breakdown Gross Contribution Margin Revenue as a % of GMV (TRY million) 20.5% 22,373 12.0% 1.8pp 1,133 11.2% 18,569 3,290 10.5% 515 1,818 2,897 9.3% 9.3% 9.3% 2,552 12,260 10,113 10,113 8,456 15,053 13,684 Q1’23 Q2’23 Q1’24 Q2’24 H1’
Slide 18: Rising Profitability Through Higher Gross Contribution
Rising Profitability Through Higher Gross Contribution EBITDA as a % of GMV Bridge EBITDA as a % of GMV as a % of GMV -0.5% 0.9pp(*) 0.3pp 1.1% 0.8pp(*) -0.9% 0.5pp 1.0% Excl. 2.6% one-off 0.8% 0.8% -0.4% 0.1%(*) 1.1% 0.8% -0.1% Excl. -0.4% 0.5% one-off 0.3%(*) Excl. 0.3%(*) 0.3% one-off Excl. EBITD
Slide 19: Strong Cash Generation in H1 2024 on Continued Cash Discipline
Strong Cash Generation in H1 2024 on Continued Cash Discipline Cash Flow From Operating Activities (TRY million) 1,340 Free Cash Flow(1) (TRY million) Highest H1 FCF since IPO 472 -238 -741 -631 Q2’23 Q2’24 H1’23 H1’24 CAPEX(2) -645 % of GMV -1,042 TRY407 M TRY869 M -1,323 Q2’23 Q2’24 H1’23 H1’24 -0
Slide 20: Q2 / H1 2024: Key Takeaways
Q2 / H1 2024: Key Takeaways 1 Real GMV growth in Q2’24; 21.6% YoY in H1’24 2 Highest Gross Contribution Margin since IPO with 12.0% in Q2’24 3 Uptrend in EBITDA continued, reaching 1.1% of GMV in Q2’24 4 Highest first half FCF with TRY 472 Mn since IPO Generating B2B revenue through moving logistics
Slide 21: Q&A
Q&A hepsiburada
Slide 22: Appendix
Appendix hepsiburada
Slide 23: Summary Financials
Summary Financials (unaudited) (unaudited) (unaudited) (unaudited) TRY million Q2’24 Q2’23 YoY H1’24 H1’23 YoY Revenues 10,112.9 10,113.3 (0.0%) 22,373.1 18,569.3 20.5% Gross Contribution 4,048.9 3,036.0 33.4% 8,172.6 5,609.9 45.7% Gross Contribution margin(1) 12.0% 9.3% 2.6 pp 11.2% 9.3% 1.8 pp Ope
Slide 24: Consolidated Statements of Comprehensive Income/(Loss)
Consolidated Statements of Comprehensive Income/(Loss) 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 June 2024) Six Months Ended Three Months Ended unaudited unaudited unaudited unaudited
Slide 25: Consolidated Balance Sheets
Consolidated Balance Sheets Consolidated Balance Sheets (Amounts expressed in thousands of Turkish lira (TRY) in terms of the purchasing power of the TRY at 30 June 2024) unaudited unaudited 30 June 2024 31 December 2023 Assets: Current assets: Cash and cash equivalents 3,680,062 6,860,403 Restricte
Slide 26: Consolidated Statements of Cash Flows
Consolidated Statements of Cash Flows Consolidated Statements of Cash Flows (Amounts expressed in thousands of Turkish lira (TRY) in terms of the purchasing power of the TRY at 30 June 2024) (unaudited) (unaudited) 1 January – 30 June 2024 1 January – 30 June 2023 Income/Loss before income taxes (52
Slide 27: Non-IFRS Metrics Reconciliation (I/V)
Non-IFRS Metrics Reconciliation (I/V) Amounts expressed in million of Turkish lira (TRY) in terms of the purchasing power of the TRY at June 30, 2024. EBITDA (TRY million) Three months ended June 30, Six months ended June 30, 2024 2023 2024 2023 Income/ (loss) for the period (384.5) 1,511.9 (526.3)
Slide 28: Non-IFRS Metrics Reconciliation (II/V)
Non-IFRS Metrics Reconciliation (II/V) Amounts expressed in million of Turkish lira (TRY). IAS 29-Unadjusted EBITDA (TRY million) Three months ended June 30, Reversal of IAS 29 Reversal of IAS 29 IAS 29 Unadjusted IAS 29 Unadjusted 2024 Adjustment 2023 Adjustment 2024 2023 Income / (loss) for the pe
Slide 29: Non-IFRS Metrics Reconciliation (III/V)
Non-IFRS Metrics Reconciliation (III/V) Amounts expressed in million of Turkish lira (TRY). IAS 29-Unadjusted EBITDA (TRY million) Six months ended June 30, Reversal of IAS 29 Reversal of IAS 29 IAS 29 Unadjusted IAS 29 Unadjusted 2024 Adjustment 2023 Adjustment 2024 2023 Income / (loss) for the per
Slide 30: Non-IFRS Metrics Reconciliation (IV/V)
Non-IFRS Metrics Reconciliation (IV/V) REVENUES (TRY million) Three months ended June 30, Six months ended June 30, 2024 2023 2024 2023 Revenues 10,112.9 10,113.3 22,373.1 18,569.3 Reversal of IAS 29 adjustment 228.7 4,367.3 1,576.3 8,289.7 IAS 29-Unadjusted Revenues 9,884.2 5,746.0 20,796.8 10,279.
Slide 31: Non-IFRS Metrics Reconciliation (V/V)
Non-IFRS Metrics Reconciliation (V/V) Free Cash Flow (TRY million) Three months ended June 30, Six months ended June 30, 2024 2023 2024 2023 Net cash provided by /(used in) operating activities (237.6) (740.6) 1,340.5 (630.7) Capital expenditures (409.1) (301.4) (874.2) (694.3) Proceeds from the sal
Slide 32: Certain Definitions
Certain Definitions 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
D-Market Electronic Services & Trading (Hepsiburada) — Q2 2024 Earnings Presentation on 6ix