D-MARKET Elektronik Hizmetler ve Ticaret AS · NASDAQ:HEPS
D-MARKET Elektronik Hizmetler ve Ticaret AS — D-Market Electronic Services & Trading (Hepsiburada) — Q3 2022 Earnings Presentation
29 slides from D-MARKET Elektronik Hizmetler ve Ticaret AS's earnings presentation, Dec 6, 2022
Slide 1: Q3 2022 Results Presentation
Q3 2022 Results Presentation December 6, 2022
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
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Slide 5: Q3 2022: Consistent Progress Despite Continued Macro Challenges
Q3 2022: Consistent Progress Despite Continued Macro Challenges Unadjusted for Inflation Adjusted for Inflation(1) GMV(2) TRY 10.7Bn 66% YoY TRY 11.0Bn -9% YoY 9M’22: 68% YoY 9M’22: -1% YoY Revenue TRY 3.2Bn 93% YoY TRY 3.3Bn 7% YoY Gross TRY 1.1Bn 9.8% of GMV 8.4% of GMV TRY 915Mn Contribution(2) +
Slide 6: Path to Profitability: Consistent Progress
Path to Profitability: Consistent Progress Solid revenue growth with continued rise in gross contribution margin and… Revenue (TRY million) Gross Contribution(1) % of GMV +6.9% +4.5pp 3.071 3.296 3.196 3.281 8.4% 5.0% 3.9% 3.7% Q3’21 Q1’22 Q2’22 Q3’22 Q3’21 Q1’22 Q2’22 Q3’22 …improving EBITDA under
Slide 7: Growth Drivers: Continued Momentum Supported by Strong CX
Growth Drivers: Continued Momentum Supported by Strong CX Growth Drivers Customer Experience Active Customers(1) Frequency(2) Customer NPS Performance(5) (Millions) 11% 21% 11.8 5.4 +10 points 10.7 4.4 76 75 72 65 68 Leadership in NPS Q3’21 Q4’21 Q1’22 Q2’22 Q3’22 Q3’21 Q4’21 Q1’22 Q2’22 Active Merc
Slide 8: Logistics: Robust Capabilities Solidifying Growth and CX
Logistics: Robust Capabilities Solidifying Growth and CX • Delivered 84% of 1P orders within next day(2) Operational Footprint(1) Last-Mile • Delivered 62% of parcel volume in 3P(3) (HepsiJet) Hepsiburada fulfillment centers • New: live-track before delivery İstanbul Kocaeli Ankara Erzurum XL • Deli
Slide 9: FinTech: Enhancing Capabilities via HepsiPay
FinTech: Enhancing Capabilities via HepsiPay Hepsipay Wallet Performance Key Developments Post Q3 2022 Wallet Base(1) TPV as a % of GMV(2) (Millions) 14.6% (%) • Wallet redesigned and re-launched with new features: 10 mn 9.2 Wallet 44% • P2P money transfers 8.0 40% 39% Customers(3) 7.1 37% • New top
Slide 10: Other Strategic Assets: Complementing Our Ecosystem
Other Strategic Assets: Complementing Our Ecosystem • Search ads, display ads and sponsored ads • 10K merchants used HepsiAd in Q3 2022 • Focus on enriching product capabilities • Cross-border execution (live in Azerbaijan) • 5.3 million SKUs active in HepsiGlobal ecosystem • Focus on testing and op
Slide 11: Guidance for FY22: GMV Guidance Raised
Guidance for FY22: GMV Guidance Raised GMV growth Raised to around 70% (Unadjusted for Inflation) EBITDA Unchanged at a range of -2.5% to -3.0% of GMV (Unadjusted for Inflation) Note: For the full year of 2022, year-over-year GMV growth guidance was initially provided on June 1, 2022 as “around %50”
Slide 12: Financial Performance
hepsiburada Financial Performance
Slide 13: GMV: Supported by Growth Drivers
GMV: Supported by Growth Drivers GMV Breakdown and Bridge GMV (TRY Billion) Adjusted for Inflation -9% YoY IAS29 adjustment Unadjusted for Inflation +0.2Bn 12.0 +66.0% GMV Q3'21 10.7 11.0 Adj. for Inflation 2.8 3.5 3.4 6.5 1.5 2.0 7.3 7.5 4.5 GMV Q3’21 Sales of Goods (1P) Marketplace (3P) GMV Q3’22
Slide 14: Revenue: Solid Growth
Revenue: Solid Growth Revenue Breakdown and Bridge Adjusted for Inflation Revenue 7% YoY (TRY Million) IAS29 adjustment Unadjusted for Inflation +75Mn +93.3% 3,071 3,206 3,281 52 74 79 Revenue Q3'21 172 345 353 Adj. for 367 Inflation 397 406 957 1,658 23 173 3.206 30 2,390 2,444 1,432 Revenue Q3’21
Slide 15: Gross Contribution: Continued Momentum
Gross Contribution: Continued Momentum Quarterly Gross Contribution Performance Unadjusted for Inflation Gross Contribution as a % of GMV Adjusted for Inflation (%) 9.8% 9.3% 8.3% 8.3% 8.4% 8.3% 8.9% 7.8% 7.1% 5.4% +3.4pp QoQ 5.0% improvement 4.3% 3.7% 3.9% Q1’21 Q2’21 Q3’21 Q4’21 Q1’22 Q2’22 Q3’22
Slide 16: OPEX: Continued Discipline in Cost Management
OPEX: Continued Discipline in Cost Management Operating Expenses as a % of GMV (Adjusted for Inflation) Impact of the settlement provision expense one-off Advertising Shipping and Packaging G&A(1) Total OPEX (1) amounting to TRY 257.9 mn impact (one-off) -3.8pp -0.7pp +4.3pp -0.1pp 7.1% 7.2% 3.7% 3.
Slide 17: EBITDA: Continued Progress on Path to Profitability
EBITDA: Continued Progress on Path to Profitability EBITDA as a % of GMV Bridge (Adjusted for Inflation) EBITDA as a % of GMV Q1’21 Q2’21 Q3’21 Q4’21 Q1’22 Q2’22 Q3’22 Unadjusted & -3.5% (2) excl. one-off -1.0% 0.7% -1.8% -2.3% -2.7% 3.8% -3.3% -3.2% -3.7% -3.5% -10.4% -2.7% -5.8% -4.2% -3.8% Adjust
Slide 18: Cash Flow: Positive Free Cash Flow in Q3 2022
Cash Flow: Positive Free Cash Flow in Q3 2022 Free Cash Flow (1) (Adjusted for Inflation) Cash Flow From Operating Activities (Adjusted for Inflation) TRY million TRY million 214.4 331.1 441.5 541.6 -177.6 -50.4 -1,290.4 -1,185.8 -1,914.4 -1,784.9 Q3’21 Q4’21 Q1’22 Q2’22 Q3’22 Q3’21 Q4’21 Q1’22 Q2’2
Slide 19: Summary Balance Sheet: Solid Cash Position, Resilient to Fluctuations
Summary Balance Sheet: Solid Cash Position, Resilient to Fluctuations Cash & Debt Overview (Adjusted for Inflation) Total Cash by Currency (%) Total Debt by Currency (%) TRY million September 30, 2022 December 31, 2021 0% Total Cash (1) 4,340.0 7,576.4 28% Total Assets 8,892.3 12,414.6 TRY0.3bn Debt
Slide 20: QoQ Key Highlights: Consistent Improvements
QoQ Key Highlights: Consistent Improvements 1 2 3 4 5 Improvement in Improvement in Improvement in Improvement in Improvement in Gross Contr. Margin(1) OPEX lines EBITDA Net Loss Free Cash Flow(2) • 8.4% gross contribution • Advertising exp. as a % • Negative TRY 638 mn • TRY 571 mn net loss in • Fr
Slide 21: Q&A
hepsiburada Q&A
Slide 22: Appendix
Appendix Consolidated Financial Statements Presentation of Financial and Other Information
Slide 23: Summary Financials
Summary Financials (Adjusted for Inflation) (unaudited) (unaudited) (unaudited) (unaudited) TRY million Q3‘22 Q3’21 Q3 YoY 9M’22 9M’21 9M YoY Revenue 3,281.2 3,070.8 6.9% 9,772.8 9,278.7 5.3% Gross Contribution 915.4 466.2 96.4% 1,828.3 2,162.7 (15.5%) Gross Contribution margin(1) 8.4% 3.9% 4.5pp 5.
Slide 24: Consolidated Statements of Comprehensive Loss
Consolidated Statements of Comprehensive Loss Consolidated Statements of Comprehensive Loss (Amounts expressed in thousands of Turkish lira (TRY) in terms of the purchasing power of the TRY at 30 September 2022 unless otherwise indicated.) Nine Months Ended Three Months Ended unaudited Unaudited una
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 September 2022 unless otherwise indicated.) unaudited unaudited(1) Assets: 30 September 2022 31 December 2021 Cash and cash equivalents 3,47
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 September 2022 unless otherwise indicated.) Unaudited Unaudited 1 January - 30 September 2022 1 January - 30 September 2
Slide 27: Non-IFRS Metrics Reconciliation (I/II)
Non-IFRS Metrics Reconciliation (I/II) EBITDA (Adjusted for Inflation) (TRY million) Three months ended September 30, Nine months ended September 30, 2022 2021 2022 2021 Net loss for the period (571.5) (1,511.2) (2,183.6) (2.421.1) Taxation on income - - - - Financial income 450.8 165.8 1,584.0 354.
Slide 28: Non-IFRS Metrics Reconciliation (II/II)
Non-IFRS Metrics Reconciliation (II/II) Free Cash Flow (Adjusted for Inflation) (TRY million) Three months ended September 30, Nine months ended September 30, 2022 2021 2022 2021 Net cash provided by /(used in) operating activities 541.6 (1.185.8) (801.8) 47.9 Capital expenditures (210.6) (104.5) (5
Slide 29: 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
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