D-MARKET Elektronik Hizmetler ve Ticaret AS · NASDAQ:HEPS
D-MARKET Elektronik Hizmetler ve Ticaret AS — D-Market Electronic Services & Trading — Q1 2022 Earnings Presentation
23 slides from D-MARKET Elektronik Hizmetler ve Ticaret AS's earnings presentation, Jun 1, 2022
Slide 1: Q1 2022 Results Presentation
Q1 2022 Results Presentation June 1, 2022 1
Slide 2: 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 3: Business Update
Business Update
Slide 4: Q1 2022 Highlights: Strong Start to the Year
Q1 2022 Highlights: Strong Start to the Year GMV(1) Revenue Gross Contribution Margin(1) TRY 8.3Bn TRY 2.5Bn 8.3% of GMV +84% YoY +82% YoY -1.0pp YoY +1.2 pp QoQ Number of Orders(1) Customer NPS(2) Hepsipay Wallet Users(3) 15Mn 72 7.1Mn +63% YoY +4pp vs. Q4’21 +38% QoQ #1 in the market (1) See “Cert
Slide 5: Key Growth Drivers: Continued Momentum
Key Growth Drivers: Continued Momentum Growth Drivers Strong Performance Through… Active Customers(1) Frequency(2) (Millions) 27% 11.3 12.0 22% 4.9 • Strong customer experience enhanced 4.7 9.4 4.1 by logistics and data science • Robust 1P muscle • Long-tail merchant and selection Q1’21 Q2’21 Q3’21
Slide 6: Customer and Merchant Experience: Solid Progress
Customer and Merchant Experience: Solid Progress Fast, Reliable and Frictionless End-to-end Solution Partner Customer Experience for Merchants(6) • Market leader in NPS(1) with 72 in Q1’22 • 53% of parcel volume in 3P delivered by HepsiJet • Strong footprint on ~200K sqm(2) • 330 firms onboarded to
Slide 7: Hepsipay: From Payment Companion Into Fintech Player
Hepsipay: From Payment Companion Into Fintech Player Hepsipay Performance Key Developments in Q1 2022 Hepsipay Wallet Base(1) (Millions) 37.7% • First store credit solution, BNPL in the Turkish e-commerce 7.1 • Credit scoring based on internal customer value insight 5.2 combined with credibility ins
Slide 8: Our Strategic Approach: Execute with Clear Priorities
Our Strategic Approach: Execute with Clear Priorities Path to Profitability Accelerate Differentiate via logistics Expand growth drivers and technology strategic assets • Attract new customers, primarily • Continue to differentiate with best-in- • Evolve into best in-class fintech targeting women cl
Slide 9: Financial Performance
Financial Performance
Slide 10: Strong GMV Performance by Growth Drivers
Strong GMV Performance by Growth Drivers Strong Operational KPIs.. …resulting in solid GMV growth Number of Orders Growth YoY 95% 52% 84% (millions) +63.2% YoY 2-year CAGR 68% 81% 90% 15.0 9.4 9.2 1P GMV 8.3 3P GMV 35% (TRY Billion) 35% Q1’21 Q1’22 LTM Q1’21 Q1’22 4.5 Active Customers (millions) (1)
Slide 11: Revenue and Gross Contribution Performance
Revenue and Gross Contribution Performance Revenue Development Gross Contribution Margin YoY 92% 45% 44% 394% 82% Gross Contribution as a % of GMV Growth 2,528 9.3% 68 23 76 8.3% 8.3% 975 7.1% 1,386 4.3% Revenue Sales of Marketplace Delivery Other Revenue Q1’21 Q2’21 Q3’21 Q4’21 Q1’22 (Q1’21) Goods
Slide 12: Operating Expenses
Operating Expenses Operating Expenses as a % of GMV 15.1% 3.4% 11.7% 12.0% Shipping and Advertising expenses as a % of GMV is Packaging 3.6% 3.6% 1 higher due to our continued investment in growth as well as higher unit cost of advertising in the industry. 7.0% Advertising 2.1% 3.9% 3.2% G&A expense
Slide 13: EBITDA Performance
EBITDA Performance EBITDA as a % of GMV Bridge -2.3% EBITDA as a % of GMV -1.0% -3.7% -0.2% -2.3% Increased -3.2% customer -1.8% 1.7% discounts Continued -3.7% -8.0% investment in growth Lower share coupled with higher based payment YoY unit cost of expenses advertising -10.2% EBITDA Gross Advertisi
Slide 14: Cash Flow Performance
Cash Flow Performance Cash Flow From Operating Activities CAPEX TRY million TRY million 749.4 44.9 -36.3 -44.0 -122.5 -56.6 -582.4 -76.8 -1,242.5 -119.4 Q1’21 Q2’21 Q3’21 Q4’21 Q1’22 Q1’21 Q2’21 Q3’21 Q4’21 Q1’22 Free Cash Flow (1) Change in Net Working Capital (2) TRY million TRY million 705.4 943.
Slide 15: Q&A
Q&A
Slide 16: Appendix
Appendix Consolidated Financial Statements Presentation of Financial and Other Information
Slide 17: Summary Financials
Summary Financials (unaudited) (unaudited) (unaudited) TRY million Q1‘22 Q4’21 Q1’21 YoY QoQ Revenue 2,527.9 2,759.1 1,385.8 82.4% (8.4%) Gross Contribution 688.3 661.2 420.3 63.7% 4.1% Gross Contribution margin(1) 8.3% 7.1% 9.3% (1.0pp) 1.2pp Operating Expenses(2) (Opex) (2,893.1) (3,555.0) (1,516.
Slide 18: Consolidated Statements of Comprehensive Loss
Consolidated Statements of Comprehensive Loss Consolidated Statements of Comprehensive Loss, TRY thousand unaudited unaudited 1 January - 1 January – 31 March 2022 31 March 2021 Revenue 2,527,885 1,385,835 Cost of inventory sold (1,839,638) (965,458) Shipping and packaging expenses (298,285) (160,97
Slide 19: Consolidated Balance Sheets
Consolidated Balance Sheets Consolidated Balance Sheets, TRY thousand unaudited audited Assets: 31 March 2022 31 December 2021 Cash and cash equivalents 2,328,477 3,813,469 Restricted cash 39,206 39,998 Financial investments 1,290,051 1,158,052 Trade receivables 341,442 224,691 Due from related part
Slide 20: Consolidated Statements of Cash Flows
Consolidated Statements of Cash Flows Consolidated Statements of Cash Flows, TRY thousand Unaudited Unaudited 1 January - 31 March 2022 1 January - 31 March 2021 Loss before income taxes (239,713) (237,325) Adjustments to reconcile loss before income taxes to cash flows from operating activities: 68
Slide 21: Non-IFRS Metrics Reconciliation (I/II)
Non-IFRS Metrics Reconciliation (I/II) EBITDA (TRY million) Three months ended March 31, 2022 2021 Net loss for the period (239.7) (237.3) Taxation on income 0.0 0.0 Financial income 433.1 53.0 Financial expenses (307.6) (159.5) Depreciation and amortization (62.3) (27.1) EBITDA (302.9) (103.7) For
Slide 22: Non-IFRS Metrics Reconciliation (II/II)
Non-IFRS Metrics Reconciliation (II/II) Free Cash Flow (TRY million) Three months ended March 31, 2022 2021 Net cash used in operating activities (1,242.5) (122.5) Capital expenditures (119.4) (36.3) Proceeds from the sale of property and equipment 0.0 0.0 Free Cash Flow (1,361.9) (158.8) Net Workin
Slide 23: 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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