D-MARKET Elektronik Hizmetler ve Ticaret AS · NASDAQ:HEPS
D-MARKET Elektronik Hizmetler ve Ticaret AS — D-MARKET Electronic Services & Trading (Hepsiburada) — Q3 2021 Earnings Presentation
28 slides from D-MARKET Elektronik Hizmetler ve Ticaret AS's earnings presentation, Nov 23, 2021
Slide 1: Q3 2021 Results Presentation
Q3 2021 Results Presentation Nov 23, 2021 1
Slide 2: Forward Looking Statements
Forward Looking Statements This presentation includes forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, Section 21E of the Securities Exchange Act of 1934 and the Safe Harbor provisions of the US Private Securities Litigation Reform Act of 1995 that reflect
Slide 3: a N o N se) Oo
a N o N se) Oo
Slide 4: Q3 2021: Slowdown in Online Customer Activity
Q3 2021: Slowdown in Online Customer Activity Turkish Statistical Institute Interbank Card Center Retail Sales Index Growth(1) Online Card Transaction Volume Growth(2) 5% 21% 17% 3% 2% 13% 7% 2018 Q3 2019 Q3 2020 Q3 2021 Q3 -2% 2018 Q3 2019 Q3 2020 Q3 2021 Q3 TUIK’s public reports marked the lowest
Slide 5: a N =) N se) oO
a N =) N se) oO
Slide 6: Q3 2021 Business Update
Q3 2021 Business Update
Slide 7: Q3 2021 Highlights: Business Fundamentals
Q3 2021 Highlights: Business Fundamentals Number of Orders(1) GMV(1) GMV per Customer (1) EBITDA (2) 72% YoY 50% YoY 33% YoY -10.2% of GMV Increased customer All time 2-year CAGR Increased GMV per active discounts and advertising quarterly high at 84% customer (LTM) (9M’21 EBITDA: -5.7% of GMV) Reve
Slide 8: Q3 2021 Highlights: Growth Drivers
Q3 2021 Highlights: Growth Drivers Active Customers(1) Frequency(2) Active Merchants(3) SKU Number(4) 26% YoY 21% YoY 87% YoY 107% YoY Increase by 2.2M Increase by 0.8 Increase by 31K Increase by 40M to 10.7M to 4.4 to 67K to 77M NOTE: Growth figures are between Q3 2021 and Q3 2020 unless otherwise
Slide 9: Q3 2021 Highlights: Key Differentiators
Q3 2021 Highlights: Key Differentiators Household Brand(1) NPS Performance Customer Experience Logistics Footprint • Unique frictionless return service • 7 distribution centers (5) • Highest aided brand • Highest NPS • Next day delivery for • 14 transfer hubs awareness in the performance in the ~75%
Slide 10: Q3 2021 Highlights: Value-Added Services for Merchants
Q3 2021 Highlights: Value-Added Services for Merchants Last-Mile Delivery Fulfillment Service Ad Platform Merchant Training 53% 6FCs 12K 39K Onboarded merchant Ad solution for merchants Largest share in delivered Training sessions to help fulfillment across 6 incl. partnership with parcels volume in
Slide 11: Q3 2021 Highlights: Key Strategic Assets
Q3 2021 Highlights: Key Strategic Assets Evolving into best-in-class payment companion On-demand grocery delivery focusing on enhancing across online and offline ecosystem synergy, customer experience and selection Number of HepsiPay Wallet Base (millions) Hyper-localization 5x Ability to choose amo
Slide 12: Looking Ahead
Looking Ahead Strong Value Sizeable Opportunity Rising Penetration GMV Guidance Proposition 90% 2x TRY 24BN Share of offline Online penetration to Super app ecosystem Forecast on GMV in total retail(1) exceed 20% by 2025(2) with robust capabilities for 2021(3) (1) Turkey’s e-commerce market (exclusi
Slide 13: Q3 2021 Financial Performance
Q3 2021 Financial Performance
Slide 14: Strong GMV Performance by Growth Drivers
Strong GMV Performance by Growth Drivers Strong Operational KPIs… …resulting in robust GMV growth Number of Orders GMV 95% 38% 50% Growth YoY (million) (TRY Billion) 72% YoY 13.8 2-year CAGR 68% 86% 84% 13.1 1P GMV 3P GMV 6.5 8.0 6.1 5.9 30% 40% 31% 4.5 4.3 Q3’20 Q2’21 Q3’21 30% LTM Q3’20 Q3’21 43%
Slide 15: Key Factors for Revenue and Gross Contribution Margin
Key Factors for Revenue and Gross Contribution Margin 3P Commission Rates 3P Share in GMV CRM Discounts(2) Weighted Average Marketplace Commission(1) Share of Marketplace (3P) CRM Discounts (TRY) (Q3 2020 = 100) (%) +2pp +13pp 70% One of the major >13X 100 102 customer discount tools is CRM 57% disc
Slide 16: Increase in Total Customer Discounts and Shift to 3P Pressured Revenue and Gross Contribution Margin
Increase in Total Customer Discounts and Shift to 3P Pressured Revenue and Gross Contribution Margin Quarterly and 9M Revenue and Gross Contribution Performance Gross Contribution 8.8% 4.3% 9.8% 7.1% % of GMV 4,799 Revenue 4,176 Gross Contribution (TRY Million) 1,672 1,658 1,066 1,187 381 280 Q3’20
Slide 17: Operating Expenses Increased Mainly due to Advertising
Operating Expenses Increased Mainly due to Advertising Operating Expenses (% of GMV) 14.5% 12.7% 3.7% Advertising expenses as a % of GMV is 3.8% higher in Q3 2021 due to continued 8.6% 8.9% 1 investment in growth drivers which became more costly under intensified competitive environment Shipping and
Slide 18: EBITDA as a Percentage of GMV Bridge
EBITDA as a Percentage of GMV Bridge EBITDA % of GMV (YoY) Increased total customer Continued investment in growth discounts due to a) intensified drivers which became more costly 0.2% competition b) slowdown in under intensified competitive market growth rate environment -4.5% -3.9% -1.2% -0.7% 0.0
Slide 19: Cash Flow Performance
Cash Flow Performance Cash Flow from Operating Activities Free Cash Flow(1) TRY million 749.5 TRY million 705.4 154.5 136.1 76.2 60.5 -47.8 -76.5 -122.5 -158.8 -582.4 -639.0 Q1’20 Q2’20 Q3’20 Q1’21 Q2’21 Q3’21 Q1’20 Q2’20 Q3’20 Q1’21 Q2’21 Q3’21 Change in Net Working Capital Capital Expenditures TRY
Slide 20: Q&A
Q&A
Slide 21: Appendix
Appendix Consolidated Financial Statements Presentation of Financial and Other Information
Slide 22: Q3 2021: Summary Financials
Q3 2021: Summary Financials Q3 9M TRY million Q3‘21 Q3’20 YoY 9M’21 9M’20 YoY Revenue 1,658.3 1,671.7 (0.8%) 4,798.9 4,176.0 14.9% Gross Contribution 280.0 380.6 (26.4%) 1,187.3 1,065.8 11.4% Gross Contribution margin(1) 4.3% 8.8% (4.5pp) 7.1% 9.8% (2.7pp) Operating Expenses(2) (Opex) (2,355.0) (1,6
Slide 23: Income Statement
Income Statement Income Statement, TRY million Nine Months Ended Three Months Ended 30 September 2021 30 September 2020 30 September 2021 30 September 2020 Revenues 4,798,872 4,176,022 1,658,336 1,671,679 Cost of inventory sold (3,611,529) (3,110,236) (1,378,262) (1,291,116) Shipping and packaging e
Slide 24: Balance Sheet
Balance Sheet Balance Sheet, TRY million Assets: 30 September 2021 31 December 2020 Cash and cash equivalents 4,038,289 592,643 Restricted cash 16,665 Trade receivables 295,301 157,107 Due from related parties 1,343 3,408 Inventories 923,014 770,141 Contract assets 6,842 55,737 Other current assets
Slide 25: Cash Flow Statement
Cash Flow Statement Cash Flow Statement, TRY million Nine Months Ended Nine Months Ended 30 September 2021 30 September 2020 Loss before income taxes (1,339,792) (151,670) Adjustments to reconcile profit/(loss) before income taxes to cash flows from operating activities: 576,318 266,652 Interest and
Slide 26: Non-IFRS Metrics Reconciliation (I/II)
Non-IFRS Metrics Reconciliation (I/II) EBITDA (TRY million) Three months ended September 30, Nine months ended September 30, 2021 2020 2021 2020 Net loss for the period (778.4) (79.6) (1,339.8) (151.7) Taxation on income 0.0 0.0 0.0 0.0 Financial income 94.0 46.5 189.5 98.8 Financial expenses (175.7
Slide 27: Non-IFRS Metrics Reconciliation (II/II)
Non-IFRS Metrics Reconciliation (II/II) Free Cash Flow (TRY million) Three months ended September 30, Nine months ended September 30, 2021 2020 2021 2020 Net cash provided by / (used in) operating activities (582.4) (47.8) 44.6 182.9 Capital expenditures (57.0) (28.7) (138.0) (62.8) Proceeds from th
Slide 28: 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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