D-MARKET Elektronik Hizmetler ve Ticaret AS · NASDAQ:HEPS
D-MARKET Elektronik Hizmetler ve Ticaret AS — D-Market Electronic Services & Trading (Hepsiburada) — Q3 2024 Earnings Presentation
34 slides from D-MARKET Elektronik Hizmetler ve Ticaret AS's earnings presentation, Dec 10, 2024
Slide 1: Q3 2024 Results Presentation
Q3 2024 Results Presentation December 10, 2024
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
Business Update hepsiburada
Slide 5: Major Milestone: First Positive Quarterly Operating Income Since IPO
Major Milestone: First Positive Quarterly Operating Income Since IPO Operating Income/(Loss) as % of GMV First since IPO 0.1% -0.3% -0.3% -0.1% -0.6% -0.6% -1.1% -2.2% -6.7% -7.2% -9.2% -10.4% -11.2% Q3’21 Q4’21 Q1’22 Q2’22 Q3’22 Q4’22 Q1’23 Q2’23 Q3’23 Q4’23 Q1’24 Q2’24 Q3’24 Driving growth and del
Slide 6: Solid Q3 and 9M Results: Continued Upward Trajectory
Solid Q3 and 9M Results: Continued Upward Trajectory IAS 29-Unadjusted IAS 29-Unadjusted IAS 29-Unadjusted GMV Growth Gross Contribution Margin EBITDA as a % of GMV 9M’24 90.4% 12.5% +1.6 pp YoY 2.3% +0.6 pp YoY excl. one-off(*) Guidance Guidance Q3’24 69.9% 12.4% +0.8 pp YoY 2.2% flat YoY excl. one
Slide 7: Hepsiburada: Most Recommended E-Commerce Brand in Türkiye
Hepsiburada: Most Recommended E-Commerce Brand in Türkiye Expanding Increasing Onboarding Highest NPS in the Active Customers Customer Engagement New Brands Turkish E-Commerce 12.3M Active Customers(1) 32.0M Number of Orders(3) ~100K Active Merchants 75 Net Promoter Score(5) ~3.7M HB Premium Members
Slide 8: Win With Loyalty: HB Premium Program Is A Key Factor
Win With Loyalty: HB Premium Program Is A Key Factor In Customer Loyalty Strategic Priorities HB Premium Days Increasing Adoption ~3.7M “HB Premium Days” Campaign was held during 16-25th of July HB Premium members(1) 31% Higher Retention Higher monthly order frequency after joining the program(2) 4M
Slide 9: Differentiation With Superior Delivery Services
Differentiation With Superior Delivery Services; Offering HepsiJet Services Off-Platform Strategic Priorities Proven Service Excellence HepsiJet’s External Customer Share HJ – Volume Share of External Customers(5) HJ - % Total Parcels Delivered(1) (million parcels) +6.8pp 67% 73% 74% 80% +10.3pp 97%
Slide 10: Differentiation With Financial Services: Affordability and Lending
Differentiation With Financial Services: Our Affordability and Lending Solutions - Unmatched PropositionStrategic Priorities Gaining Traction Unmatched Proposition in the Market Affordability Solutions GMV Penetration(1) 8.8% • Largest non-bank BNPL solution in the market 8.1% 5.6% 8.8% • Highest CR
Slide 11: Hepsipay Is A Leading Payment Solutions Provider
Differentiation With Financial Services: Hepsipay Is A Leading Payment Solutions Provider In Türkiye Strategic Priorities Hepsipay Digital Wallet Hepsipay’s One Click Checkout Solution 17.6M Hepsipay Wallet Customers(1) ~100% “Pay with Hepsipay” • TPV Growth QoQ(3) 2.1M HB prepaid cards issued(1) 12
Slide 12: Legendary November
Legendary November Note: Based on preliminary results. 12
Slide 13: Q4 2024 Outlook and FY 2024E
Q4 2024 Outlook and FY 2024E: Continued Growth and Profitability Guidance FY 2024E Q4 2024 IAS 29-Unadjusted GMV growth 50% to 55% around 75% adjusted for inflation: around 13% IAS 29-Unadjusted EBITDA as % of GMV 1.8% to 2.0% 2.1% to 2.2% around +0.6pp YoYexcl. one-off(*) (*): One-off item in Q3’23
Slide 14: Kaspi.kz Expects to Acquire Majority Stake in Hepsiburada
Kaspi.kz Expects to Acquire Majority Stake in Hepsiburada • On October 17, 2024 Kaspi.kz signed a Stock Purchase Agreement with members of the Doğan Family to purchase Class A and Class B shares representing 65.41% of the total Transaction outstanding Class A and Class B shares of Hepsiburada. Summa
Slide 15: Financial Update
Financial Update hepsiburada
Slide 16: Solid Q3 Results and 9M Performance
Solid Q3 Results and 9M Performance GMV Gross Contribution Margin EBITDA as a % of GMV 9M’24 TRY 122.0 Bn 11.3% 1.0% +0.6 pp YoY 17.4% YoY +1.9 pp YoY +0.8pp YoY excl. one-off(*) Q3’24 TRY 42.3 Bn 11.5% 1.2% +0.9 pp YoY 10.3% YoY +2.1 pp YoY +1.3 pp YoY excl. one-off(*) (*): One-off item in Q3’23 is
Slide 17: Q3 2024: Solid Performance in Continued Tough Environment
Q3 2024: Solid Performance In A Continued Tough Macroeconomic Environment GMV Gross Contribution(1) Operating Income EBITDA USD equivalent(2) $1.13 Bn $1.24 Bn $105.8 Mn $142.9 Mn ($7.2 Mn) $1.0 Mn $3.9 Mn $14.9 Mn TRY 3.6 Bn TRY 4.9 Bn (TRY 245.1 Mn) TRY 32.4 Mn TRY 131.4 Mn TRY 507.8 Mn (TRY billi
Slide 18: Rising Non-Electronics Share In GMV In Line With Strategy
Rising Non-Electronics Share In GMV In Line With Our Strategy Q3’24: Solid KPIs GMV Breakdown(3) (TRY billion) 1P GMV (TRY billion) Non-Electronics GMV 32.0M 3P GMV Electronics GMV Number of Orders(1) 10.3% +2.6pp 19% YoY 42.3 shift to non-electronics 42.3 38.4 38.4 5% YoY 29.6% excl. digital produc
Slide 19: Revenue Diversification Contributing To Margin Improvement
Revenue Diversification Contributing To Margin Improvement Revenue Breakdown Gross Contribution Margin Revenue as a % of GMV (TRY million) +13.5% +2.1pp +1.9pp 36,610 11.5% 11.3% +1.7% 32,262 12,037 12,242 9.4% 9.4% 8,041 8,838 1,668 1,573 1,786 1,215 410 746 Q3’23 Q3’24 9M’23 9M’24 Q3’23 Q3’24 9M’2
Slide 20: Rising Profitability Through Higher Gross Contribution
Rising Profitability Through Higher Gross Contribution EBITDA as a % of GMV Bridge EBITDA as a % of GMV -0.1% +1.3pp(*) -0.3% 1.2% 1.1% -0.4% 0.0% 1.2% 0.0% 0.8% 2.1% -0.5% Excl. one-off(*) 0.3% 0.3% 0.3% Excl. one-off(*) -0.1% EBITDA Gross Advertising Shipping Payroll Technology Other EBITDA Excl.
Slide 21: Strong Cash Generation in 9M 2024
Strong Cash Generation in 9M 2024 on Continued Cash Discipline Cash Flow From Operating Activities (TRY million) 3,181 3,398 2,494 Free Cash Flow(1) 1,938 (TRY million) 2,831 2,093 Q3’23 Q3’24 9M’23 9M’24 1,579 1,390 CAPEX(2) % of GMV TRY359 M TRY1,305 M Q3’23 Q3’24 9M’23 9M’24 -0.9% -0.8% -1.1% -1.
Slide 22: Q3 2024: Key Takeaways
Q3 2024: Key Takeaways 1 Double- digit real GMV growth in Q3’24 2 First positive quarterly Operating Income since IPO 3 2.1pp improvement in Gross Contribution Margin 4 Uptrend in EBITDA continued, reaching 1.2% of GMV in Q3’24 5 Oct’24: Change of control in ownership to Kaspi.kz (subject to customa
Slide 23: Q&A
Q&A hepsiburada
Slide 24: Appendix
Appendix hepsiburada
Slide 25: Summary Financials
Summary Financials (unaudited) (unaudited) (unaudited) (unaudited) TRY million Q3’24 Q3’23 YoY 9M’24 9M’23 YoY Revenues 12,241.6 12,036.6 1.7% 36,610.3 32,262.2 13.5% Gross Contribution 4,872.1 3,607.6 35.1% 13,773.7 9,717.9 41.7% Gross Contribution margin(1) 11.5% 9.4% 2.1 pp 11.3% 9.4% 1.9 pp Net
Slide 26: Consolidated Statements of Comprehensive Income/(Loss)
Consolidated Statements of Comprehensive Income/(Loss) Consolidated Statements of Comprehensive Income/(Loss) (Amounts expressed in thousands of Turkish lira (TRY) in terms of the purchasing power of the TRY at 30 September 2024) Nine Months Ended Three Months Ended unaudited unaudited unaudited una
Slide 27: 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 2024) unaudited unaudited 30 September 2024 31 December 2023 Assets: Current assets: Cash and cash equivalents 4,256,239 7,472,319
Slide 28: 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 2024) (unaudited) (unaudited) 1 January – 30 September 2024 1 January – 30 September 2023 Income/(loss) before
Slide 29: Non-IFRS Metrics Reconciliation (I/V)
Non-IFRS Metrics Reconciliation (I/V) Amounts expressed in million of Turkish lira (TRY) in terms of the purchasing power of the TRY at September 30, 2024. EBITDA (TRY million) Three months ended September 30, Nine months ended September 30, 2024 2023 2024 2023 Income/ (loss) for the period (307.4)
Slide 30: Non-IFRS Metrics Reconciliation (II/V)
Non-IFRS Metrics Reconciliation (II/V) Amounts expressed in million of Turkish lira (TRY). IAS 29-Unadjusted EBITDA (TRY million) Three months ended September 30, Reversal of IAS 29 Reversal of IAS 29 IAS 29 Unadjusted IAS 29 Unadjusted 2024 Adjustment 2023 Adjustment 2024 2023 Income / (loss) for t
Slide 31: Non-IFRS Metrics Reconciliation (III/V)
Non-IFRS Metrics Reconciliation (III/V) Amounts expressed in million of Turkish lira (TRY). IAS 29-Unadjusted EBITDA (TRY million) Nine months ended September 30, Reversal of IAS 29 Reversal of IAS 29 IAS 29 Unadjusted IAS 29 Unadjusted 2024 Adjustment 2023 Adjustment 2024 2023 Income / (loss) for t
Slide 32: Non-IFRS Metrics Reconciliation (IV/V)
Non-IFRS Metrics Reconciliation (IV/V) REVENUES (TRY million) Three months ended September 30, Nine months ended September 30, 2024 2023 2024 2023 Revenues 12,241.6 12,036.6 36,610.3 32,262.2 Reversal of IAS 29 adjustment 336.8 4,429.2 3,908.7 14,375.2 IAS 29-Unadjusted Revenues 11,904.8 7,607.4 32,
Slide 33: Non-IFRS Metrics Reconciliation (V/V)
Non-IFRS Metrics Reconciliation (V/V) Free Cash Flow (TRY million) Three months ended September 30, Nine months ended September 30, 2024 2023 2024 2023 Net cash provided by operating activities 1,937.8 3,180.6 3,397.8 2,493.7 Capital expenditures (367.1) (365.6) (1,319.3) (1,121.9) Proceeds from the
Slide 34: 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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