D-MARKET Elektronik Hizmetler ve Ticaret AS · NASDAQ:HEPS
D-MARKET Elektronik Hizmetler ve Ticaret AS — D-Market Electronic Services & Trading — Q4 2021 Earnings Presentation
31 slides from D-MARKET Elektronik Hizmetler ve Ticaret AS's earnings presentation, Mar 24, 2022
Slide 1: Q4/ Full Year 2021 Results Presentation
Q4/ Full Year 2021 Results Presentation Mar 24, 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: Strong Execution Despite Macro Headwinds
Strong Execution Despite Macro Headwinds GMV(1) Revenue Gross Contribution Margin(1) Q4: TRY 9.4Bn +52% YoY Q4: TRY 2.8Bn +25% YoY Q4: 7.1% of GMV +2.7pp QoQ FY: TRY 26.2Bn +54% YoY FY: TRY 7.6Bn +19% YoY FY: 7.1% of GMV -1.9pp YoY (+80% 2yr CAGR) Number of Orders(1) Customer NPS(2) Hepsipay Wallet
Slide 5: Solid Performance in Challenging Q4 Environment
Solid Performance in Challenging Q4 Environment Continued Momentum in Growth Drivers Challenges in Q4… Active Customers(1) Frequency(2) (Millions) 25% 1. Macroeconomic volatility 10.7 11.3 23% 4.4 4.7 2. Supply constraints 9.0 3.9 3. Continued dynamics in post- Covid normalization and competitive la
Slide 6: Enhanced Customer Experience Solidifying Growth Momentum
Enhanced Customer Experience Solidifying Growth Momentum Market Leader in Super Convenience in Depth and Breadth in Diverse Affordability NPS(1) with 68 Customer Journey Selection Solutions • ~79% of 1P orders • Hybrid 1P – 3P model • Payment in installments, delivered by HepsiJet with over 90Mn SKU
Slide 7: Enriched Merchant Experience Along Merchant Lifecycle
Enriched Merchant Experience Along Merchant Lifecycle Merchant Lifecycle Smooth Onboarding 360 Degree Solution Customized Programs Management Experience Partner in eCommerce for Segments • HepsiPartner app • ~52% of total 3P volume • Around 29K women launched in Nov for easy delivered by HepsiJet(3)
Slide 8: Robust Logistics Network Across Turkey
Robust Logistics Network Across Turkey Hepsiburada fulfillment centers Total Area (K SQM) • 7 distribution centers İstanbul Nationwide 190 • 14 transfer hubs Kocaeli Ankara Erzurum • 165 cross-docks Logistics 135 • 2,150 carriers İzmir Diyarbakır Footprint • 2,690 PUDO points Adana 2020 2021 % Parce
Slide 9: Payment Companion Across Online and Offline: Progress
Payment Companion Across Online and Offline: Progress Hepsipay Performance Key Actions and Results in Q4 2021 Hepsipay Wallet Base(1) (Millions) 5.2 • Increased customer base within Hepsiburada reaching 5.2Mn open wallets at the end of 2021 • ~37% of total GMV passed through Hepsipay Wallet 1.9 • Is
Slide 10: Payment Companion Across Online and Offline: Roadmap
Payment Companion Across Online and Offline: Roadmap 1. Establish 2. Expand 3. Develop Full-Fledged Digital Wallet Affordability Solutions Further Fintech Capabilities • Penetration in Hepsiburada • BNPL solution launched for • Explore platform and channel customer base unbanked / unloaned consumers
Slide 11: On-Demand Grocery Delivery
On-Demand Grocery Delivery Selection Expansion • Multi merchant structure with end-to-end integration of national and regional retailers Grocery, Water and Flowers • Flexible infrastructure to run multiple operating models with vendors and adjacent verticals Customer Experience • Ecosystem of 60+ pa
Slide 12: Strong and Sustainable Growth in 2022
Strong and Sustainable Growth in 2022 Accelerate Growth Differentiate via Expand Strategic Drivers Logistics and Tech Assets • Attract new customers, • HepsiJet: Continue to • Hepsipay: Evolve into best- targeting women and youth differentiate with best-in-class in-class payment companion • Driver f
Slide 13: Looking Ahead
Looking Ahead Sizeable Opportunity and • 90% share of offline in total retail(1) Rising penetration • 10% share of online penetration to exceed 20% by 2025(1)(2) Continued Momentum in • GMV growth of around 50% in 2022(3) growth Path to • Improving margins by solid execution with disciplined cash Pr
Slide 14: Financial Performance
Financial Performance
Slide 15: Continued Growth Momentum
Continued Growth Momentum Active Customers(1) Frequency(2) Higher Order Volume 3 Millions # of transactions Millions 25% 23% 53% 11.3 4.7 53.5 3.9 9.0 3.5 34.9 6.5 22.3 2019 2020 2021 2019 2020 2021 2019 2020 2021 (1): Number of users (both unregistered users and members of the platform) who purchas
Slide 16: Cohort Analysis Support Continued Customer Engagement
Cohort Analysis Support Continued Customer Engagement Increasing Customer Loyalty Reflected in Growing GMV per Cohort… …and Order Frequency(2) GMV per Cohort Active Customer, TL(1) Average Number of Orders Placed by Cohort Active Customer per Year 5,000 10 4,500 26% 9 increase in GMV per cohort 4,00
Slide 17: Strong GMV Performance
Strong GMV Performance Quarterly Annual Growth YoY Growth YoY 56% 111% 54% 115% 50% 52% 2-year CAGR 2-year CAGR 80% 84% 81% 9.4 26.2 1P GMV 1P GMV 3P GMV 3P GMV (TRY Billion) 35% (TRY Billion) 32% 6.5 6.1 17.0 30% 40% 41% 65% 8.0 68% 70% 34% 60% 59% 66% Q4’20 Q3’21 Q4’21 2019 2020 2021 See “Certain
Slide 18: GMV Breakdown and Revenue Performance
GMV Breakdown and Revenue Performance GMV Breakdown(1) Revenue Development YoY 2% 23% 30% 35% 351% 25% 19% 8% Growth 23% 7,558 10% 6,376 2021 10% 2,759 51 58 30 2,200 422 19% Mobile 10% Appliances Technology Books & Hobbies Supermarket 18% Home & Garden Revenue Sales of Marketplace Delivery Other Re
Slide 19: Key Factors for Gross Contribution Margin
Key Factors for Gross Contribution Margin 3P Commission Rates CRM Discounts Gross Contribution Margin Weighted Average Marketplace Commission(1) CRM Discounts(2) Core Gross Contribution as a % of GMV (Q3’20=100) (TRY) (%) New Business One of the major 100 102 100 One of the major customer customer d
Slide 20: Operating Expenses
Operating Expenses Operating Expenses as a % of GMV 14.5% 14.3% 13.3% 3.7% 3.4% 3.6% 10.5% Advertising expenses as a % of GMV is Shipping and Packaging 3.2% 9.5% 1 higher due to our continued investment in growth as well as higher unit cost of advertising in the industry. 3.2% 7.1% 7.0% 5.7% Adverti
Slide 21: EBITDA as a Percentage of GMV Bridge
EBITDA as a Percentage of GMV Bridge EBITDA as a % of GMV Bridge -0.4% -2.2% -3.0% -1.4% -0.2% -7.2% EBITDA as a % of GMV Q4’20 Q4’21 TRY (182.7) million TRY (676.7) million Payroll and EBITDA % of GMV Gross contribution Advertising exp. outsource staff exp. Other OPEX* EBITDA % of GMV -2.3% -3.0% -
Slide 22: Cash Flow Performance
Cash Flow Performance Cash Flow From Operating Activities CAPEX TRY million TRY million 441.4 -37.3 258.4 -76.8 -100.1 89.5 44.9 -214.8 Q4’20 Q4’21 FY’20 FY’21 Q4’20 Q4’21 FY’20 FY’21 Free Cash Flow(1) Change in Net Working Capital(2) TRY million TRY million 341.4 1,038.1 221.3 461.3 393.3 230.0 -31
Slide 23: Q&A
Q&A
Slide 24: Appendix
Appendix Consolidated Financial Statements Presentation of Financial and Other Information
Slide 25: Summary Financials
Summary Financials (unaudited) (unaudited) (unaudited) (audited) Q4 FY TRY million Q4‘21 Q4’20 YoY FY’21 FY’20 YoY Revenue 2,759.1 2,199.7 25.4% 7,558.0 6,375.7 18.5% Gross Contribution 661.2 460.8 43.5% 1,848.5 1,526.6 21.1% Gross Contribution margin(1) 7.1% 7.5% (0.4pp) 7.1% 9.0% (1.9pp) Operating
Slide 26: Consolidated Statements of Comprehensive Loss
Consolidated Statements of Comprehensive Loss Consolidated Statements of Comprehensive Loss, TRY thousand Twelve Months Ended Three Months Ended unaudited audited unaudited unaudited 31 December 2021 31 December 2020 31 December 2021 31 December 2020 Revenues 7,558,021 6,375,727 2,759,149 2,199,704
Slide 27: Consolidated Balance Sheets
Consolidated Balance Sheets Consolidated Balance Sheets, TRY thousand unaudited audited Assets: 31 December 2021 31 December 2020 Cash and cash equivalents 3,947,085 592,643 Restricted cash 39,998 - Financial investments 1,024,437 - Trade receivables 224,691 157,107 Due from related parties 2,184 3,
Slide 28: Consolidated Statements of Cash Flows
Consolidated Statements of Cash Flows Consolidated Statements of Cash Flows, TRY thousand unaudited audited 1 January - 31 December 2021 1 January - 31 December 2020 Loss before income taxes (625,803) (474,517) Adjustments to reconcile profit/(loss) before income taxes to cash flows from operating a
Slide 29: Non-IFRS Metrics Reconciliation (I/II)
Non-IFRS Metrics Reconciliation (I/II) EBITDA (TRY million) Three months ended December 31, Twelve months ended December 31, 2021 2020 2021 2020 Net income/(loss) for the period 714.0 (322.8) (625.8) (474.5) Taxation on income - - - - Financial income 1,970.6 4.1 2,160.1 102.9 Financial expenses (53
Slide 30: Non-IFRS Metrics Reconciliation (II/II)
Non-IFRS Metrics Reconciliation (II/II) Free Cash Flow (TRY million) Three months ended December 31, Twelve months ended December 31, 2021 2020 2021 2020 Net cash provided by operating activities 44.9 258.4 89.5 441.4 Capital expenditures (76.8) (37.3) (214.8) (100.1) Proceeds from the sale of prope
Slide 31: 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 — Q4 2021 Earnings Presentation on 6ix