D-MARKET Elektronik Hizmetler ve Ticaret AS · NASDAQ:HEPS
D-MARKET Elektronik Hizmetler ve Ticaret AS — D-Market Electronic Services & Trading (Hepsiburada) — Q2 2023 Earnings Presentation
37 slides from D-MARKET Elektronik Hizmetler ve Ticaret AS's earnings presentation, Aug 24, 2023
Slide 1: Q2 2023 Results Presentation
Q2 2023 Results Presentation August 24, 2023
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
hepsiburada Business Update
Slide 5: Q2 2023 Highlights: Positive Trajectory Maintained
Q2 2023 Highlights: Positive Trajectory Maintained IAS 29- Unadjusted GMV Total Orders Growth 100.5% YoY 42.9% YoY 27.5M 94.6% YoY inflation-adjusted(1) IAS 29- Unadjusted Gross Contribution 10.4% +2.1pp YoY NPS(4) 73 Market leader as a % GMV(2) IAS 29- Unadjusted 2.0% +4.7pp YoY HB Premium Program
Slide 6: Q2 2023 Guidance: Exceeded on Growth and Prudence
Q2 2023 Guidance: Exceeded on Growth and Prudence Guidance Actual IAS 29-Unadjusted GMV Growth ~95% 100.5% IAS 29-Unadjusted EBITDA as a 0.5% to 1.0% excluding 1.5% one-off(1) % of GMV (1): Reversal of the provision for the Competition Board investigation which was concluded in July 2023. For additi
Slide 7: Customer Frequency and Engagement: Robust Performance
Customer Frequency and Engagement: Robust Performance Total Orders(1) Q2’22 Q2’23 14.1M 27.5M 95% YoY (Order) Frequency(2) (LTM) Active Customers(3) Q2’22 Q2’22 Q2’23 Q2’23 5.2 8.1 11.7M 12.0M 57% YoY 3% YoY NOTE: Growth figures are between Q2 2023 and Q2 2022 unless otherwise indicated. The year-ov
Slide 8: Our Merchants: Digitizing E-Commerce
Our Merchants: Digitizing E-Commerce (LTM) Active Merchants(1) Merchant App for Our Business Partners Q2’22 Q2’23 88.7K 101.3K • Campaign Management 14% YoY My Account • Ad Management Notification Center Advertisement • Merchant Rating Report Number of SKUs(2) Accounting Q2’22 Q2’23 • Accounting and
Slide 9: Strategic Update: Progressing On Our Priorities
Strategic Update: Progressing On Our Priorities Win with customer loyalty and optimize marketing and advertising spend Clear differentiation with affordability & lending solutions as well as high-quality service levels on our platform and superior delivery services Pursue profitability through focus
Slide 10: HB Premium: Compelling Proposition Leading to a Growing Base
HB Premium: Compelling Proposition Leading to a Growing Base HB Premium Program For TRY 14.9/month For TRY 34.9/month Hepsiburada Competitor’s Premium Loyalty Program ~1.3 million 1.4x Free delivery Hepsiburada Premium Higher order frequency Members(1) after joining the program(2) Free return pick-u
Slide 11: Differentiation: The Most Diverse Affordability Solutions
Differentiation: The Most Diverse Affordability Solutions Hepsipay Debit Card Top-up to Wallet BNPL Shopping Loan Continue • For both online and physical • Top-up to wallet with loans • Buy now and pay in up to 12 • Instant point of sale loans for payments through integration with 3 installments – u
Slide 12: Differentiation: Strong Performance on a Solid Customer Base
Differentiation: Strong Performance on a Solid Customer Base Hepsipay Wallet Affordability Solutions Wallet Base(1) TPV as a % of Affordability GMV(2) Solutions GMV Penetration(3) (Millions) (%) Temporary decline due +56% to low lending appetite 12.5 Through Non-card Affordability Solutions of banks
Slide 13: Differentiation: Solid Progress in Delivery Service KPIs
Differentiation: Solid Progress in Delivery Service KPIs TPVFast as a and GMV(2) Service Through HepsiJet % of Reliable TPV asHJ a -%% of GMV Total (2) Delivered(3) Parcels +5.2pp HJ - % Next Day Delivery(1) 63% 66% 60% HepsiJet NPS(2) 88.9 84% 84% in Q2’23 83% Q2’22 Q1’23 Q2’23 HJ XL- % Orders Deli
Slide 14: Pursuing Profitability: Achieved Through Key Strengths and Cost Management
Pursuing Profitability: Achieved Through Key Strengths and Cost Management IAS 29-Unadjusted EBITDA as a % of GMV 2.0% Building Blocks for Profitability excluding 1.2% one-off(1) Key strengths and action points 1.5% 0.0% Optimization of Opex and Gross Increase share of -0.5% marketing and Contributi
Slide 15: Moving Off-Platform with Services: HepsiJet
Moving Off-Platform with Services: HepsiJet is Highly Preferred by Reputable Brands Hepsijet serves third parties A Selection of Off-Platform Client Portfolio of HepsiJet HJ - % Volume of External Customers(1) +2.7pp 24.8% 22.1% Q1’23 Q2’23 (1): Share of volume from other retailers’ operations deliv
Slide 16: Moving Off-Platform with Services: Hepsipay
Moving Off-Platform with Services: Hepsipay to become the leading Fintech Player Hepsipay Solid Base of Most Diverse Hepsipara Fast and Reliable Competitive Registered Customers Affordability Solutions Loyalty Program Payment Experience Advantage • Instant shopping loan, BNPL and top-up-to- • Earn c
Slide 17: Q3 2023/FY23 Outlook: Continued Growth and Positive EBITDA
Q3 2023/FY23 Outlook: Continued Growth and Positive EBITDA • ~110% GMV(1) growth compared to Q3 2022 Q3 2023 • EBITDA(1) as a % of GMV within the range of 0.5% to 1.0% FY23 • Full year positive EBITDA(1) (1): Figures are based on IAS 29-Unadjusted EBITDA and IAS 29-Unadjusted GMV figures. In 2023, w
Slide 18: Financial Performance
hepsiburada Financial Performance
Slide 19: Q2 2023 Financial Highlights: Robust Performance Across All Key Metrics
Q2 2023 Financial Highlights: Robust Performance Across All Key Metrics IAS 29-Unadjusted IAS 29-Unadjusted IAS 29-Unadjusted IAS 29-Unadjusted GMV Revenue Gross Contribution(1) EBITDA TRY 18.5Bn TRY 5.7Bn 10.4% of GMV 2.0% of GMV 1.5% of GMV excluding (2) one-off 101% YoY 101% YoY +2.1 pp YoY +4.7
Slide 20: GMV: Solid Growth
GMV: Solid Growth Solid Operational KPIs.. …resulting in strong GMV growth Number of Orders (TRY Billion) 1P GMV (TRY Billion) Non-Electronics GMV (million) 95% Electronics GMV 3P GMV 20% 27.5 excl. digital products +43% 14.1 19.0 19.0 32.9% 41.3% 13.3 13.3 Q2’22 Q2’23 36.0% 40.7% Q2’22 Q2’23 Active
Slide 21: Revenue and Gross Contribution Margin
Revenue and Gross Contribution Margin: Solid Revenue Performance On Strong Order Growth Revenue Breakdown and Bridge Gross Contribution Performance Revenue Gross Contribution Margin (TRY Million) IAS 29-Unadjusted Gross Contribution Margin Gross Contribution Margin 10.5% 10.4% +42.8% 9.8% 5,894 9.2%
Slide 22: EBITDA Performance: Improvement On Higher Gross Contribution and Frugality
EBITDA Performance: Improvement On Higher Gross Contribution and Frugality EBITDA as a % of GMV Bridge EBITDA as a % of GMV Shipping and Payroll and Q2’22 Q3’22 Q4’22 Q1’23 Q2’23 excluding EBITDA Gross Advertising packaging outsource Other EBITDA 2.0% one-off(2) % of GMV contribution exp. exp. staff
Slide 23: Free Cash Flow: Narrowed Down Negative Working Capital and One-off Cash Outflow
Free Cash Flow: Narrowed Down Negative Working Capital and One-off Cash Outflow Free Cash Flow(1) Cash Flow From Operating Activities TRY million 1,269 TRY million TRY 283 mn payment for the 277 427 litigation 1,549 settlement(2) -164 570 699 64 -607 TRY -324 mn excluding the cash -432 outflow for t
Slide 24: Q2 2023: Key Takeaways
Q2 2023: Key Takeaways 1 EBITDA as a % of GMV at 2.0%, exceeding guidance for Q2 2023 2 GMV growth at ~101%, exceeding guidance for Q2 2023 4.4pp improvement in Gross Contribution and 7.0pp rise in EBITDA as 3 a % of GMV Net income at TRY 881M through improved EBITDA, strong net 4 financial income a
Slide 25: Q&A
hepsiburada Q&A
Slide 26: Appendix
Appendix Consolidated Financial Statements Presentation of Financial and Other Information
Slide 27: Summary Financials
Summary Financials (unaudited) (unaudited) (unaudited) (unaudited) TRY million Q2’23 Q2’22 YoY H1’23 H1’22 YoY Revenue 5,893.6 4,126.0 42.8% 10,821.5 8,381.1 29.1% Gross Contribution 1,769.3 656.6 169.5% 3,269.2 1,178.7 177.4% Gross Contribution margin(1) 9.3% 5.0% 4.4pp 9.3% 4.3% 5.0pp Operating Ex
Slide 28: Operating Expenses
Operating Expenses Operating Expenses as a % of GMV Advertising Shipping and Packaging G&A(1) Total OPEX -2.6pp -0.8pp -2.1pp 11.1% excluding -0.3pp excluding one-off -1.6pp one-off Impact(2) 4.6% 4.5% Impact(2) 3.6% 9.3% 9.1% 4.4% -0.2pp 3.8% 2.9% 2.9% 2.7% 3.8% 8.6% 1.9% 2.0% Q2’22 Q1’23 Q2’23 Q2’
Slide 29: 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 June 2023 unless otherwise indicated.) Six Months Ended Three Months Ended unaudited unaudited unaudited
Slide 30: 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 2023 unless otherwise indicated.) unaudited unaudited Assets: 30 June 2023 31 December 2022 Cash and cash equivalents 4,867,634 6,307,3
Slide 31: 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 2023 unless otherwise indicated.) (unaudited) (unaudited) 1 January – 30 June 2023 1 January – 30 June 2022 Income
Slide 32: Non-IFRS Metrics Reconciliation (I/V)
Non-IFRS Metrics Reconciliation (I/V) EBITDA (TRY million) Three months ended June 30, Six months ended June 30, 2023 2022 2023 2022 Net income/ (loss) for the period 881.1 (782.7) 675.8 (2,081.4) Taxation on income - - - - Financial income 1,443.2 716.1 1,615.2 1,463.1 Financial expenses (714.8) (5
Slide 33: Non-IFRS Metrics Reconciliation (II/V)
Non-IFRS Metrics Reconciliation (II/V) IAS 29-Unadjusted EBITDA (TRY million) Three months ended June 30, Reversal of IAS 29 Reversal of IAS 29 2023 IAS 29 Unadjusted 2022 IAS 29 Unadjusted Adjustment 2023 Adjustment 2022 Net income/ (loss) for the period 881.1 (100.2) 981.3 (782.7) (567.2) (215.5)
Slide 34: Non-IFRS Metrics Reconciliation (III/V)
Non-IFRS Metrics Reconciliation (III/V) IAS 29-Unadjusted EBITDA (TRY million) Six months ended June 30, Reversal of IAS 29 Reversal of IAS 29 2023 IAS 29 Unadjusted 2022 IAS 29 Unadjusted Adjustment 2023 Adjustment 2022 Net income/ (loss) for the period 675.8 (225.5) 901.3 (2,081.4) (1,626.2) (455.
Slide 35: Non-IFRS Metrics Reconciliation (IV/V)
Non-IFRS Metrics Reconciliation (IV/V) REVENUE (TRY million) Three months ended June 30, Six months ended June 30, 2023 2022 2023 2022 Revenue 5,893.6 4,126.0 10,821.5 8,381.1 Reversal of IAS 29 adjustment 147.6 1,264.3 541.9 2,991.6 IAS 29-Unadjusted Revenue 5,746.0 2,861.7 10,279.6 5,389.5 GROSS C
Slide 36: 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, 2023 2022 2023 2022 Net cash provided by /(used in) operating activities (431.6) 570.0 (367.5) (1,734.4) Capital expenditures (175.6) (293.4) (404.6) (460.7) Proceeds from the sal
Slide 37: 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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