D-Market Elektronik Hizmetler ve Ticaret A.S. (NASDAQ:HEPS) Q2 2023 Earnings Conference Call August 24, 2023 9:00 AM ET Conference Call Participants Ladies and gentlemen, thank you for standing by. I am Geli, your Chorus Call operator. Welcome, and thank you for joining the Hepsiburada Conference Call and Live Webcast to present and discuss the Second Quarter 2023 Financial Results. [Operator Instructions] Thanks, operator. Thank you for joining us today for Hepsiburada's second quarter 2023 earnings call. ...

Financial Performance - Revenue increased by 42.8% YoY to TRY 5893.6 million in Q2 2023[96] - Gross Contribution margin increased by 4.4 percentage points YoY to 9.3% of GMV in Q2 2023[165] - Net income was TRY 881.1 million for Q2 2023, compared to a net loss of TRY 782.7 million for Q2 2022[96] - IAS 29-Unadjusted EBITDA reached 2.0% of GMV in Q2 2023, a 4.7 percentage points YoY increase[70] - GMV grew by 43% YoY, reaching TRY 19.0 billion in Q2 2023[165] Operational Metrics - Total orders increased by 95% YoY to 27.5 million in Q2 2023[70] - Active Customers increased by 3% YoY to 12.0 million in Q2 2023[101] - (LTM) Active Merchants increased by 14% YoY in Q2 2023[120] - Number of SKUs increased by 50% YoY from 130.3 million to 194.7 million in Q2 2023[82] Hepsipay and Affordability Solutions - Hepsipay wallet base reached 12.5 million users in Q2 2023[67] - BNPL solutions saw 207K+ clients using their limits as of Q2 2023[67]

Exhibit 99.1 Hepsiburada Announces Second Quarter 2023 Financial Results ISTANBUL, August 24, 2023 - D-MARKET Electronic Services & Trading (d/b/a "Hepsiburada") (NASDAQ: HEPS), a leading Turkish e-commerce platform (referred to herein as "Hepsiburada" or the "Company"), today announces its unaudited financial results for the second quarter ended June 30, 2023. Restatement of financial information: Pursuant to the International Accounting Standard 29, Financial Reporting in Hyperinflationary Economies ("IAS ...

Financial Data and Key Metrics Changes - The company achieved a positive EBITDA of TRY 176 million, marking the highest level since its IPO in July 2021, with a year-on-year EBITDA as a percentage of GMV rising by 4.8 percentage points [3][21][28] - Revenue growth was reported at 16% year-on-year, with adjusted for inflation GMV growth at 78%, reaching TRY 14.8 billion [51][55] - The gross contribution margin improved to 9.3%, reflecting a 5.6 percentage point increase compared to the same quarter last year [25][56] Business Line Data and Key Metrics Changes - The share of marketplace GMV reached 68%, up from 65% in Q1 2022, indicating a strategic advantage in third-party operations [24] - Non-electronics categories in GMV split rose by 1.6 percentage points to 43% year-on-year, showcasing diversification in product offerings [24] - HepsiPay Wallet users increased to 11.8 million, a 66% rise year-on-year, with 87% of GMV generated by HepsiPay customers [41] Market Data and Key Metrics Changes - The number of merchants on the platform exceeded 100,000, reflecting a 21% year-on-year increase, with total orders around 74 million, marking a 61% growth [9][37] - The company reported a significant improvement in next-day delivery capabilities, rising to 84% year-on-year [15] - The active customer base remained nearly TRY 11.9 million, with signs of recovery post-earthquake [37] Company Strategy and Development Direction - The company aims to focus on sustainable differentiators, including affordability solutions and superior delivery services, to enhance customer retention and competitive positioning [5][10] - A strategic priority is to offer logistics and fintech solutions to third parties, unlocking new revenue streams and enhancing operational efficiency [46] - The company is committed to profitability through core operations and cost optimization, with a focus on customer loyalty via the Hepsiburada Premium program [10][38] Management's Comments on Operating Environment and Future Outlook - Management expressed cautious optimism for the second quarter, expecting continued strong growth driven by improved merchant onboarding and a focus on non-electronics [60][62] - The company acknowledged the impact of the February earthquake but noted a return to pre-earthquake levels in customer engagement by March [37][49] - Management emphasized the importance of optimizing discounts and operational expenditures to maintain profitability [70][72] Other Important Information - The company launched the HepsiPay debit card and introduced new customer loan features to enhance financial flexibility for users [48] - HepsiJet's performance in logistics showed a solid increase in third-party delivery services, contributing to overall growth [17][44] - The company reported a negative free cash flow of TRY 154 million in Q1 2023, an improvement from negative TRY 2.3 billion in Q1 2022, due to better working capital management [27] Q&A Session Summary Question: What are the main drivers behind the robust growth expected in the second quarter? - Management indicated that the growth rate in Q1 was significantly hampered by the earthquake, and excluding this factor, stronger growth was observed, leading to confidence in future performance [60] Question: Do you expect a positive trend to continue in the rest of the year? - Management expressed optimism about maintaining a positive trend, particularly with the onboarding of new merchants and a focus on non-electronics, which are expected to enhance margins [62] Question: How is the company managing discounts and operational expenditures? - Management confirmed ongoing optimization of customer discounts and operational expenditures to ensure profitability moving forward [70][72]

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 20-F ☐ REGISTRATION STATEMENT PURSUANT TO SECTION 12(b) OR (g) OF THE SECURITIES EXCHANGE ACT OF 1934 OR ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to OR ☐ SHELL COMPANY REPORT PURSUANT TO SECTION 13 OR 1 ...

Financial Data and Key Metrics Changes - In Q4 2022, the company generated positive free cash flow of TRY 1.1 billion compared to negative TRY 191 million a year ago, attributed to better working capital management and improved EBITDA [3][4] - For the full year 2022, free cash flow was nearly flat at negative TRY 416 million, with higher cash provided by operating activities [4] - The company achieved a negative 2.1% EBITDA as a percentage of GMV in 2022, marking a 4.4 percentage point year-on-year improvement [66] Business Line Data and Key Metrics Changes - The adjusted GMV grew by 104% in Q4 2022 compared to Q4 2021, with a full year GMV growth of around 4% [17][20] - Marketplace revenue grew by approximately 41%, while 1P revenue increased by 3% and other revenues, including advertising and fulfillment services, surged by 86% [24] - The share of non-electronics in GMV rose to 42% in 2022, reflecting the expansion of long-tail products [20] Market Data and Key Metrics Changes - E-commerce penetration in Turkey remains low at 15%, indicating significant growth potential [12] - The company reported a 39% increase in order frequency, reaching 6.6 orders per customer in 2022 [67] - The active customer base grew by over 900,000, totaling 12.2 million by year-end [42] Company Strategy and Development Direction - The company aims to focus on customer loyalty through its Hepsi Premium program, which has already attracted 840,000 members [54] - Plans to externalize payment services and logistics to other online retailers are in place, leveraging HepsiPay and HepsiJet for additional revenue streams [53][59] - The strategic focus includes improving profitability through a prioritized approach to core commerce and cost optimization [60] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving adjusted EBITDA breakeven in Q1 2023, despite challenges posed by recent earthquakes [64] - The company anticipates GMV growth of around 70% in Q1 2023 compared to Q1 2022, which is expected to exceed inflation [64] - Management highlighted the importance of digitalization in Turkish e-commerce and the potential for sustainable profitability [37] Other Important Information - The company has initiated a two-year program to support small and medium-sized enterprises in earthquake-affected regions, aiming to generate TRY 10 billion in GMV during this period [63] - HepsiJet's operational footprint expanded significantly, delivering 65% of Hepsiburada parcels in 2022, up from 50% in 2021 [58] Q&A Session Summary Question: Impact of new e-commerce regulation on revenue and marketing costs - Management welcomed the new regulation, expecting a reduction in marketing investment aligned with improved performance marketing and customer retention strategies [9][10] Question: CapEx guidance for 2023 - Management indicated that CapEx for 2023 would be similar to 2022, primarily focused on R&D and technology investments [11][12] Question: Competitive environment and customer acquisition - Management noted that Hepsiburada's local agility and resources provide a competitive advantage over global players like Amazon, emphasizing a strong market position [34][35]

Exhibit 99.1 Hepsiburada Announces Fourth Quarter and Full Year 2022 Financial Results ISTANBUL, March 22, 2023 - D-MARKET Electronic Services & Trading (d/b/a "Hepsiburada") (NASDAQ: HEPS), a leading Turkish e-commerce platform (referred to herein as "Hepsiburada" or the "Company"), today announces its unaudited financial results for the fourth quarter and full year ended December 31, 2022. Restatement of financial information: Pursuant to the International Accounting Standard 29, Financial Reporting in Hy ...

Financial Data and Key Metrics Changes - In Q3 2022, the company reported a GMV growth of 66% on an unadjusted basis, while adjusted for inflation, GMV declined by 9% [7][31] - Revenue grew by 93% on an unadjusted basis, and 7% when adjusted for inflation, despite the decline in GMV [35] - The gross contribution margin improved to 8.4%, a 4.5 percentage point increase year-on-year [8][38] - EBITDA as a percentage of GMV improved by 4.6 percentage points year-on-year to negative 5.8% [11][42] Business Line Data and Key Metrics Changes - Active customer base grew by 11% year-on-year, reaching 11.8 million [13] - Order frequency increased to 5.4, up from 4.4 a year ago [13] - Marketplace GMV accounted for approximately 68%, down from 70% a year ago [34] - The company achieved nearly six-fold growth in marketplace revenue, while 1P revenue declined by 7% [36] Market Data and Key Metrics Changes - Inflation in Türkiye reached about 80%, impacting consumer behavior and GMV growth [7] - The share of marketplace GMV fluctuated due to macroeconomic factors and customer behavior [34] Company Strategy and Development Direction - The company is focused on optimizing customer experience, expanding the merchant base, and improving marketing effectiveness [12] - A strategic shift towards profitability has led to reduced marketing spending and discounts [35] - The company raised its GMV growth guidance for the full year from around 60% to around 70% [27][49] Management Comments on Operating Environment and Future Outlook - Management acknowledged the competitive landscape and high marketing costs, while preparing for regulatory changes expected in January 2023 [53][55] - The company remains committed to disciplined cash and cost management to support its path to profitability [49] Other Important Information - The company reached a settlement agreement for class action lawsuits in the U.S., incurring a provision expense of approximately TRY258 million [10][40] - Hepsipay wallet usage grew significantly, with around 44% of GMV passing through it [20] Q&A Session Summary Question: Impact of new e-commerce loss on profitability and competition - Management noted that the market remains competitive with high marketing costs and is preparing for regulatory changes affecting marketing spending [53][55] Question: Plans for excess cash from reduced spending - Management indicated that cash generation will depend on GMV and promotional distribution, with further details to be discussed in upcoming quarters [58]

hepsiburada Q2 2022 Results Presentation September 28, 2022 1 Disclaimer SUBTITLE BELOW THIS LINE NOTES START FROM HERE AND GROW UP 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 of changes in a general price index. IAS 29 does not establish an absolute rate when hyperi ...

Financial Data and Key Metrics Changes - In Q2 2022, the company reported a 57% GMV growth and a 63% revenue growth on an unadjusted basis, while adjusted for inflation, GMV and revenue declined by 10% and 6% respectively compared to the same quarter last year [17][40] - The gross contribution margin was 5% in Q2, reflecting a 2.8-percentage-point decline year-on-year but a 1.7-percentage-point improvement compared to Q1 2022 [18][47] - Positive free cash flow of TRY185 million was generated in Q2, a significant improvement from negative TRY1.8 billion in Q1 [18][54] Business Line Data and Key Metrics Changes - Active customer base grew by 18% to 11.7 million, and order frequency increased by 23% to 5.2% year-on-year [19] - The active merchant base increased to nearly 89,000, contributing to a doubling of SKUs to 130 million [20] - Revenue from advertising solutions (HepsiAd) grew by approximately 54% [43] Market Data and Key Metrics Changes - The Consumer Confidence Index was at an all-time low of 63% in June but showed signs of recovery, rising to 72% in August [9] - The annual inflation rate reached 79% by the end of June, with inflation accounting impacting financial reporting [10][11] Company Strategy and Development Direction - The company aims to enhance its ecosystem beyond e-commerce, focusing on logistics, financial services, and cross-border operations [8] - The introduction of Hepsiburada Smart Store and Hepsiburada Premium reflects the company's commitment to innovation and customer-centric solutions [22][23] - The company is focused on improving cash flow and profitability through disciplined cost management and operational efficiency [60][62] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the challenging macroeconomic environment, emphasizing the need for effective inventory management and cost control [71][72] - The company raised its GMV growth guidance for the full year from around 50% to approximately 60% [34][64] - Management expressed confidence in the path to profitability, expecting EBITDA to improve from negative 6.5% last year to a range of negative 2.5% to negative 3% this year [34][65] Other Important Information - The implementation of IAS 29 for inflation accounting has become mandatory, affecting financial reporting [36] - The company is expanding its fintech services, with HepsiPay Wallet reaching 8 million users and a Buy Now Pay Later solution being launched [32] Q&A Session Summary Question: Free cash flow comparison to Q2 2021 - Management explained that seasonality affects cash flow, with higher inventory purchases in Q4 leading to negative cash flow in Q1, but they are working to improve cash flow performance [69][70] Question: EBITDA guidance clarification - Management stated that they cannot provide adjusted EBITDA guidance due to various factors affecting inflation accounting [76] Question: GMV guidance and competitive dynamics - Management noted that consumer behavior is shifting towards more affordable products due to inflation, impacting average order value and GMV growth [81][90] Question: Free delivery share and Hepsiburada Premium pricing - Management indicated that around 65% to 67% of GMV is covered by 3P cargo costs, and Hepsiburada Premium is priced at TRY9.9 per month [103][106] Question: Impact of new e-commerce law - Management mentioned it is too early to assess the impact of the new e-commerce law but anticipates a more favorable operating environment over time [116][119]