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]

[Financial and Operational Highlights](index=2&type=section&id=Financial%20and%20Operational%20Highlights) Q2 and H1 2022 saw strong unadjusted growth, but IAS 29 led to reported declines and wider EBITDA losses [Second Quarter 2022 Highlights](index=2&type=section&id=Second%20Quarter%202022%20Highlights) In Q2 2022, Hepsiburada demonstrated strong growth in user engagement with an 8.0% increase in orders and a 17.5% rise in active customers year-over-year. However, due to hyperinflation accounting (IAS 29), reported Gross Merchandise Value (GMV) decreased by 9.7% to TRY 9.6 billion, and revenue fell by 6.2%. On an unadjusted basis, GMV grew significantly by 57.3%. The company's EBITDA loss widened to TRY 593.8 million from TRY 404.3 million in Q2 2021, though it showed a sequential improvement from Q1 2022 Q2 2022 Key Metrics (YoY, IAS 29 Adjusted) | Metric | Q2 2022 | Q2 2021 | YoY Change | | :--- | :--- | :--- | :--- | | **GMV** | TRY 9.6 billion | TRY 10.6 billion | -9.7% | | **Revenue** | TRY 2,985.2 million | TRY 3,183.9 million | -6.2% | | **Number of Orders** | 14.1 million | 13.1 million | +8.0% | | **Active Customers** | 11.7 million | 9.9 million | +17.5% | | **Frequency** | 5.2 | 4.2 | +23.2% | | **EBITDA** | (TRY 593.8 million) | (TRY 404.3 million) | - | | **Net Loss** | (TRY 566.3 million) | (TRY 484.1 million) | - | - On an unadjusted for inflation basis, **GMV** grew by **57.3%** to **TRY 9.2 billion**, and **EBITDA** as a percentage of **GMV** improved by **0.5 percentage points** compared to Q2 2021[8](index=8&type=chunk) [First Half 2022 Highlights](index=2&type=section&id=First%20Half%202202%20Highlights) For the first half of 2022, the company reported a 3.1% increase in inflation-adjusted GMV to TRY 19.7 billion, driven by a significant 30.7% growth in the number of orders. Revenue grew by 4.6%. On an unadjusted basis, GMV saw robust growth of 69.1%. However, EBITDA loss for the period more than doubled to TRY 1,430.2 million, and free cash flow turned negative at TRY 1,612.3 million compared to a positive flow in H1 2021 H1 2022 Key Metrics (YoY, IAS 29 Adjusted) | Metric | H1 2022 | H1 2021 | YoY Change | | :--- | :--- | :--- | :--- | | **GMV** | TRY 19.7 billion | TRY 19.1 billion | +3.1% | | **Revenue** | TRY 6,063.9 million | TRY 5,798.8 million | +4.6% | | **Number of Orders** | 29.1 million | 22.3 million | +30.7% | | **EBITDA** | (TRY 1,430.2 million) | (TRY 635.8 million) | - | | **Net Loss** | (TRY 1,505.9 million) | (TRY 849.9 million) | - | | **Free Cash Flow** | (TRY 1,612.3 million) | TRY 1,009.4 million | - | - On an unadjusted for inflation basis, **GMV** for the first half of 2022 grew by **69.1%** to **TRY 17.5 billion**[8](index=8&type=chunk) [Management Commentary and Outlook](index=3&type=section&id=Management%20Commentary%20and%20Outlook) Management highlighted strong engagement and strategic initiatives, raising GMV guidance and projecting improved EBITDA margins [CEO Commentary](index=3&type=section&id=CEO%20Commentary) The CEO highlighted the challenging macroeconomic environment with rising inflation. Despite this, the company achieved 31% order growth in H1 2022, driven by an 18% increase in active customers and a 23% rise in order frequency. Key strategic initiatives launched include the 'Hepsiburada Premium' subscription service, which gained 200,000 members in two months, and a 'Buy Now, Pay Later' (BNPL) solution used by over 100,000 customers. The company remains focused on its path to profitability - **Order growth** in H1 2022 was **31%**, driven by an **18%** increase in **active customers** and a **23%** increase in order frequency year-over-year[9](index=9&type=chunk) - Launched 'Hepsiburada Premium', a paid subscription service, which reached **200,000 members** within two months of its July launch[11](index=11&type=chunk) - The company's **Buy-Now-Pay-Later (BNPL)** solution has been utilized by over **100,000 customers** by the end of August[12](index=12&type=chunk) [Financial Outlook](index=5&type=section&id=Financial%20Outlook) The company raised its full-year 2022 GMV growth guidance from around 50% to approximately 60% on an unadjusted for inflation basis. It also initiated guidance for full-year 2022 EBITDA as a percentage of GMV, expecting a range of negative 3.0% to negative 2.5%, a significant improvement from negative 6.5% in 2021, signaling a strong focus on profitability - Raised full-year 2022 **GMV** growth guidance to around **60%** (from **~50%**) on an unadjusted for inflation basis[22](index=22&type=chunk) - Expects full-year 2022 **EBITDA** as a percentage of **GMV** to be between **-3.0%** and **-2.5%** (unadjusted for inflation), an improvement from **-6.5%** in 2021[22](index=22&type=chunk) [Key Business Developments](index=6&type=section&id=Key%20Business%20Developments) Key business developments include robust unadjusted GMV and order growth, expanded merchant base, logistics, and financial services [GMV and Order Growth](index=6&type=section&id=GMV%20and%20Order%20Growth) Unadjusted for inflation, Q2 2022 GMV grew 57.3% to TRY 9.2 billion. The growth was primarily driven by an 8% increase in order volume, supported by a 23% rise in customer order frequency. The company noted that the pass-through effect of inflation on average order value is not fully correlated, especially in non-FMCG categories, due to factors like inventory carryover and competitive dynamics - Q2 2022 order growth of **8%** was driven by a **23%** increase in order frequency (to **5.2**) and a **17.5%** increase in the **active customer base** (to **11.7 million**)[24](index=24&type=chunk) - The pass-through of inflation to average order value is limited in many categories due to inventory carryover, competitive pressures, and consumers substituting for more affordable alternatives[25](index=25&type=chunk) [Marketplace](index=6&type=section&id=Marketplace) The active merchant base grew by 45.5% year-over-year to 88,700 in Q2 2022, and the number of SKUs more than doubled to 130.3 million. The share of Marketplace (3P) GMV decreased to 64% from 69% in Q2 2021, indicating a rising share of direct sales (1P) which demonstrates the adaptability of the company's hybrid business model - **Active merchant base** increased to **88.7 thousand** in Q2 2022 from **61 thousand** in Q2 2021[26](index=26&type=chunk) - **Number of SKUs** more than doubled to **130.3 million** as of June 30, 2022, from **62.9 million** a year prior[26](index=26&type=chunk) - The **Marketplace (3P) share of GMV** was **64%** in Q2 2022, down from **69%** in Q2 2021, as the share of direct sales (1P) increased[27](index=27&type=chunk) [Logistics and Financial Services](index=7&type=section&id=Logistics%20and%20Financial%20Services) The company's logistics arm, HepsiJet, significantly expanded its role, delivering 57% of total Marketplace parcels in Q2 2022, up from 34% a year ago. In financial services, the Hepsipay wallet reached 8.0 million customers, with 39% of total GMV passing through it. The new BNPL solution, launched in Q1 2022, has already been used by over 100,000 customers - **HepsiJet**, the last-mile delivery service, delivered **57%** of total Marketplace parcels in Q2 2022, a significant increase from **34%** in Q2 2021[32](index=32&type=chunk) - **HepsiLojistik**, the fulfillment-as-a-service business, served **513 clients** by the end of Q2 2022[34](index=34&type=chunk) - The **Hepsipay wallet** reached **8.0 million customers** by the end of Q2 2022, processing approximately **39%** of total **GMV** during the quarter[36](index=36&type=chunk) - The **Buy-Now-Pay-Later (BNPL)** solution, launched in Q1 2022, was used by over **100,000 customers** as of the end of August 2022[38](index=38&type=chunk) [Strategic Assets and ESG](index=8&type=section&id=Strategic%20Assets%20and%20ESG) Strategic assets continued to scale, with Hepsiburada Market (on-demand grocery) expanding its retailer network, and Hepsiburada Seyahat (flight tickets) selling roughly 37,000 tickets in Q2. The company also emphasized its ESG commitments, having signed the UN Global Compact and pledged to the UN Women's Empowerment Principles, alongside launching social responsibility initiatives - **Hepsiburada Market** (formerly HepsiExpress) expanded its on-demand delivery ecosystem to **105 retailers**[40](index=40&type=chunk) - **Hepsiburada Seyahat** sold approximately **37,000 flight tickets** in Q2 2022, up from **27,000** in the previous quarter[41](index=41&type=chunk) - The company committed to The United Nations Women's Empowerment Principles as part of its ESG efforts[44](index=44&type=chunk) [Hepsiburada Financial Review](index=9&type=section&id=Hepsiburada%20Financial%20Review) The financial review details IAS 29's impact on revenue, gross contribution, and expenses, leading to increased net losses and negative EBITDA [Restatement of Financial Information (IAS 29)](index=9&type=section&id=Restatement%20of%20Financial%20Information%20(IAS%2029)) Due to Türkiye being categorized as a hyperinflationary economy, the company has applied IAS 29 to its financial statements. All figures are presented in terms of the measuring unit current as of June 30, 2022. This involves restating non-monetary items and comparative periods using a general price index, which significantly impacts year-over-year comparisons - The company applied International Accounting Standard **29** (**IAS 29**) for financial reporting in a hyperinflationary economy, effective for periods ending on or after June 30, 2022[3](index=3&type=chunk) - Financial statements are presented in the measuring unit current as of June 30, 2022. Comparative periods are also restated to this unit, and a gain or loss on the net monetary position is included in the income statement[4](index=4&type=chunk)[50](index=50&type=chunk) [Revenue Analysis](index=10&type=section&id=Revenue%20Analysis) Inflation-adjusted revenue for Q2 2022 decreased by 6.2% YoY to TRY 2,985.2 million. This was driven by declines in 1P sales (-3.3%), Marketplace revenue (-6.2%), and delivery service revenue (-32.2%). The primary reason for the decline, despite an 8% growth in order volume, was the limited pass-through of high inflation to average order values Q2 2022 Revenue Breakdown (Inflation Adjusted, YoY) | Revenue Stream | Q2 2022 (TRY million) | Q2 2021 (TRY million) | YoY Change | | :--- | :--- | :--- | :--- | | Sale of goods (1P) | 2,403.9 | 2,486.0 | -3.3% | | Marketplace revenue (3P) | 303.2 | 323.2 | -6.2% | | Delivery service revenue | 234.8 | 346.5 | -32.2% | | **Total Revenue** | **2,985.2** | **3,183.9** | **-6.2%** | - The **revenue** decline in **1P** and **3P** operations was mainly due to the limited pass-through effect of inflation on average order value[54](index=54&type=chunk) [Gross Contribution Analysis](index=10&type=section&id=Gross%20Contribution%20Analysis) On an inflation-adjusted basis, the gross contribution margin as a percentage of GMV declined by 2.8 percentage points to 5.0% in Q2 2022 from 7.8% in Q2 2021. This was primarily due to the revenue decline from limited inflation pass-through and a significantly higher inflation impact on the cost of inventory sold, exacerbated by higher inventory turnover days compared to the previous year Q2 Gross Contribution (Inflation Adjusted, YoY) | Metric | Q2 2022 | Q2 2021 | YoY Change | | :--- | :--- | :--- | :--- | | **Gross Contribution** | TRY 475.0 million | TRY 827.8 million | -42.6% | | **Gross Contribution Margin (% of GMV)** | 5.0% | 7.8% | -2.8 pp | - The decline in **gross contribution margin** was caused by lower **revenue** and a higher inflation impact on cost of inventory sold, which was amplified by higher inventory turnover days in Q2 2022[59](index=59&type=chunk) [Operating Expenses Analysis](index=11&type=section&id=Operating%20Expenses%20Analysis) Net operating expenses as a percentage of GMV rose by 3.9 percentage points in Q2 2022. This was mainly driven by a 4.0 pp increase in cost of inventory sold (as a % of GMV) due to the IAS 29 inflation adjustment and a 1.3 pp rise in payroll expenses. These increases were partially offset by improved efficiency, leading to a 1.3 pp decrease in advertising expenses and a 1.1 pp decrease in shipping expenses as a percentage of GMV - Advertising expenses as a percentage of **GMV** decreased by **1.3 pp** due to enhanced marketing efficiency and a focus on customer retention[61](index=61&type=chunk)[64](index=64&type=chunk) - Payroll expenses as a percentage of **GMV** rose by **1.3 pp**, driven by talent onboarding, salary increases, and higher share-based payment expenses[61](index=61&type=chunk)[63](index=63&type=chunk) - Shipping and packaging expenses as a percentage of **GMV** declined by **1.1 pp**, reflecting a decrease in the number of parcels delivered and limited price increases from delivery partners[61](index=61&type=chunk)[65](index=65&type=chunk) [Net Loss and EBITDA](index=13&type=section&id=Net%20Loss%20and%20EBITDA) The net loss for Q2 2022 increased to TRY 566.3 million from TRY 484.1 million in Q2 2021. EBITDA was negative TRY 593.8 million, a decline from negative TRY 404.3 million in the prior year, corresponding to an EBITDA margin of -6.2% of GMV. The margin decline was driven by lower gross contribution and higher payroll costs, partially offset by efficiencies in advertising and shipping. Sequentially, the EBITDA margin improved by 2.1 percentage points from Q1 2022 - **Net loss** for Q2 2022 was **TRY 566.3 million**, an increase from a **net loss** of **TRY 484.1 million** in Q2 2021[69](index=69&type=chunk) - **EBITDA** as a percentage of **GMV** declined by **2.4 pp** YoY to **-6.2%** in Q2 2022, mainly due to a lower **gross contribution margin**[70](index=70&type=chunk) - Sequentially, the **EBITDA margin** improved by **2.1 pp** from **-8.3%** in Q1 2022 to **-6.2%** in Q2 2022, driven by better **gross contribution** and cost efficiencies[71](index=71&type=chunk) [Balance Sheet and Cash Flow Analysis](index=14&type=section&id=Balance%20Sheet%20and%20Cash%20Flow%20Analysis) The company ended Q2 2022 with total cash and financial investments of approximately TRY 4.0 billion. Net working capital was negative TRY 2,025.8 million. Net cash provided by operating activities was TRY 396.7 million, a significant decrease from the prior year but a strong improvement from Q1 2022. Free cash flow was positive at TRY 184.6 million for the quarter - **Capital expenditures (Capex)** were **TRY 212.1 million** in Q2 2022, with over **60%** related to capitalized employee costs for platform development[73](index=73&type=chunk) - **Net cash provided by operating activities** was **TRY 396.7 million** in Q2 2022, a decrease from **TRY 1,376.3 million** in Q2 2021 but a significant improvement from negative cash flow in Q1 2022[75](index=75&type=chunk) - **Free cash flow** was positive at **TRY 184.6 million** in Q2 2022, compared to positive **TRY 1,299.8 million** in Q2 2021[77](index=77&type=chunk) - **Total cash and cash equivalents** stood at **TRY 2,685.9 million**, with an additional **TRY 1,338.8 million** in **financial investments** as of June 30, 2022[79](index=79&type=chunk)[80](index=80&type=chunk) [Additional Information](index=15&type=section&id=Additional%20Information) Recent developments include significant amendments to the Turkish E-commerce Law and a planned CEO transition [Regulatory Changes](index=15&type=section&id=Regulatory%20Changes) The Turkish Parliament approved amendments to the E-commerce Law in July 2022, aimed at preventing unfair competition. Key provisions, effective on various dates starting January 1, 2023, include limits on advertising spend, restrictions on providing financial services, a ban on private label products, and new licensing requirements for large e-commerce platforms - An amendment to the Turkish E-commerce Law was approved on July 1, 2022, to prevent unfair competition and monopolistic practices[83](index=83&type=chunk) - New regulations include limits on advertising expenditures (effective Jan 1, 2023), restrictions on financial services (effective Jan 1, 2024), and a ban on private label products (effective Jan 1, 2024)[84](index=84&type=chunk) [Management Changes](index=16&type=section&id=Management%20Changes) Hepsiburada announced a CEO transition. Murat Emirdag will step down for personal reasons effective January 1, 2023, and will be succeeded by Nilhan Onal. Ms. Onal joins from Amazon Europe, where she held several senior leadership roles. Mr. Emirdag will remain on the board as a non-executive director - **CEO** Murat Emirdag will step down as of January 1, 2023, and will transition to a non-executive director role on the board[87](index=87&type=chunk) - Nilhan Onal, formerly of Amazon Europe and Procter & Gamble, has been appointed as the new **CEO**, effective January 1, 2023[87](index=87&type=chunk)[88](index=88&type=chunk) [Consolidated Financial Statements](index=17&type=section&id=Consolidated%20Financial%20Statements) The consolidated financial statements summarize the balance sheet, comprehensive loss, and cash flow positions under IAS 29 [Consolidated Balance Sheets](index=17&type=section&id=Consolidated%20Balance%20Sheets) The unaudited consolidated balance sheet as of June 30, 2022, shows total assets of TRY 8.33 billion and total equity of TRY 2.68 billion. Key current assets include TRY 2.69 billion in cash and cash equivalents and TRY 2.23 billion in inventories. Key current liabilities include TRY 4.21 billion in trade payables and payables to merchants Consolidated Balance Sheet Highlights (As of June 30, 2022) | Account | Amount (TRY thousands) | | :--- | :--- | | **Total Assets** | **8,328,060** | | Cash and cash equivalents | 2,685,882 | | Inventories | 2,227,251 | | **Total Liabilities** | **5,648,489** | | Trade payables and payables to merchants | 4,213,224 | | **Total Equity** | **2,679,571** | [Consolidated Statements of Comprehensive Loss](index=19&type=section&id=Consolidated%20Statements%20of%20Comprehensive%20Loss) The unaudited consolidated statement of comprehensive loss for the three months ended June 30, 2022, reports total revenues of TRY 2.99 billion and a net loss for the period of TRY 566.3 million. For the six months ended June 30, 2022, revenues were TRY 6.06 billion with a net loss of TRY 1.51 billion Statement of Comprehensive Loss Summary (Unaudited) | Period | Revenues (TRY thousands) | Net Loss (TRY thousands) | | :--- | :--- | :--- | | **Three Months Ended June 30, 2022** | 2,985,245 | (566,283) | | **Six Months Ended June 30, 2022** | 6,063,868 | (1,505,900) | [Consolidated Statements of Cash Flows](index=20&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) For the six months ended June 30, 2022, the company reported net cash used in operating activities of TRY 1.28 billion. Net cash used in investing activities was TRY 361.4 million, and net cash used in financing activities was TRY 292.3 million. This resulted in a net decrease in cash and cash equivalents for the period Cash Flow Summary (Six Months Ended June 30, 2022) | Cash Flow Activity | Amount (TRY thousands) | | :--- | :--- | | Net cash (used in)/provided by operating activities | (1,279,262) | | Net cash used in investing activities | (361,381) | | Net cash used in financing activities | (292,341) | | **Net (decrease)/increase in cash and cash equivalents** | **(1,932,984)** | [Non-IFRS Financial Measures and Definitions](index=22&type=section&id=Non-IFRS%20Financial%20Measures%20and%20Definitions) This section defines non-IFRS measures like EBITDA and Free Cash Flow, providing their reconciliations and key operational metric definitions [Use of Non-IFRS Financial Measures](index=22&type=section&id=Use%20of%20Non-IFRS%20Financial%20Measures) The company uses non-IFRS measures such as EBITDA, Free Cash Flow, and Net Working Capital to monitor underlying business performance. The report provides definitions for these metrics and reconciles them to the most directly comparable IFRS measures. For example, EBITDA is reconciled from net loss, and Free Cash Flow is reconciled from net cash provided by operating activities - **EBITDA** is defined as profit or loss plus taxation, net financial expenses, depreciation, and amortization[102](index=102&type=chunk) - **Free Cash Flow** is defined as net cash from operating activities less capital expenditures plus proceeds from the sale of property and equipment[102](index=102&type=chunk) Q2 2022 EBITDA Reconciliation (TRY million) | Line Item | Amount | | :--- | :--- | | Net loss for the period | (566.3) | | Taxation on income | - | | Financial income | 518.1 | | Financial expenses | (413.2) | | Depreciation and amortization | (101.6) | | Monetary gains/(losses) | 24.2 | | **EBITDA** | **(593.8)** | [Certain Definitions](index=25&type=section&id=Certain%20Definitions) This section defines key operating performance indicators used by management. Definitions are provided for GMV (gross merchandise value), Active Customer (a user who purchased in the last 12 months), Frequency (average orders per active customer), and Active Merchant (a merchant who sold at least one item in the last 12 months) - **GMV** (**Gross Merchandise Value**) is the total value of orders sold through the platform, including VAT and shipping fees, before returns and cancellations[117](index=117&type=chunk) - **Active Customer** is defined as a user who purchased an item within the preceding **12-month** period[117](index=117&type=chunk)

hepsiburada Q1 2022 Results Presentation June 1, 2022 1 Forward Looking Statements SUBTITLE BELOW THIS LINE NOTES START FROM HERE AND GROW UP 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 Safe Harbor provisions of the US Private Securities Litigation Reform Act of 1995, and encompasses ...

Exhibit 99.1 Hepsiburada Announces First Quarter 2022 Financial Results ISTANBUL, June 1, 2022 - 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 first quarter ended March 31, 2022. First Quarter 2022 Financial and Operational Highlights Commenting on the results, Mr. Emirdag, CEO of Hepsiburada said: "We had a solid start to the ye ...

PART I [Key Information](index=16&type=section&id=Item%203.%20Key%20Information) Details significant risks including net losses, intense competition, Turkish macroeconomic instability, concentrated voting control, and internal control weaknesses [Risk Factors](index=16&type=section&id=D.%20Risk%20Factors) Faces substantial risks including consistent net losses, intense competition, Turkish macroeconomic instability, and founder's controlling voting power Historical Net Losses | Fiscal Year | Net Loss (TRY million) | | :--- | :--- | | 2021 | 700.1 | | 2020 | 474.5 | | 2019 | 131.6 | - Two material weaknesses in internal control over financial reporting were identified in FY2021: Ineffective controls over the review of complex and unusual transactions in accordance with IFRS, and ineffective information technology general controls (ITGCs) for a recently developed IT product, including a lack of segregation of duties[160](index=160&type=chunk)[161](index=161&type=chunk)[163](index=163&type=chunk) - Due to high inflation, Turkey is classified as a hyperinflationary economy under IFRS (IAS 29), requiring the company to restate its financial statements for periods ending on or after June 30, 2022[176](index=176&type=chunk)[184](index=184&type=chunk) - The founder and chairwoman holds **71.1%** of the total voting power through super-voting Class A shares (**15 votes per share**), making the company a 'controlled company' under Nasdaq rules[215](index=215&type=chunk)[217](index=217&type=chunk)[220](index=220&type=chunk) - The Turkish Competition Authority (TCA) is investigating the company for alleged anti-competitive agreements in labor markets. A provision of **TRY 127.5 million** was recognized for a potential fine, which could range from **2% to 4%** of the previous year's annual net revenue[134](index=134&type=chunk) [Information On The Company](index=79&type=section&id=Item%204.%20Information%20On%20The%20Company) Overview of Hepsiburada's history, hybrid business model, integrated ecosystem, organizational structure, and leased fulfillment centers [History and Development of the Company](index=79&type=section&id=A.%20History%20and%20Development%20of%20the%20Company) Founded in 2000, Hepsiburada evolved from 1P to 3P marketplace, launched logistics, and became the first Nasdaq-listed Turkish company - The company was founded in 2000 as a 1P e-commerce platform and launched its 3P Marketplace in 2015[258](index=258&type=chunk)[261](index=261&type=chunk) - Became the first-ever Nasdaq-listed Turkish company on July 1, 2021[266](index=266&type=chunk) - Acquired Doruk Finansman, a consumer finance company, in February 2022 to offer diversified consumer financing solutions[268](index=268&type=chunk) [Business Overview](index=83&type=section&id=B.%20Business%20Overview) Operates a leading hybrid commerce platform in Turkey, connecting customers and merchants with an expanding ecosystem of strategic assets Key Business Metrics | Metric (as of Dec 31, 2021) | Value | | :--- | :--- | | Active Customers | 11.3 million | | Active Merchants | ~75,000 | | SKUs | >90.3 million | | Order Frequency (FY2021) | 4.7 | | Aided Brand Awareness (2021) | 99% | - In 2021, the 3P Marketplace model accounted for approximately **68%** of the company's Gross Merchandise Value (GMV), with the 1P Direct Sales model comprising the remaining **32%**[278](index=278&type=chunk)[309](index=309&type=chunk)[324](index=324&type=chunk) - The company is building an ecosystem of strategic assets including: **HepsiExpress**: On-demand grocery and essentials delivery, **Hepsipay**: Digital wallet, BNPL, and payment solutions, **HepsiJet**: In-house last-mile delivery service covering all 81 cities in Turkey, **HepsiLojistik**: Fulfillment-as-a-service for merchants, **HepsiGlobal**: Cross-border e-commerce platform[302](index=302&type=chunk)[376](index=376&type=chunk)[388](index=388&type=chunk) - The logistics network includes **7 fulfillment centers**, **165 cross-docks**, and over **2,690 pick-up & drop-off (PUDO) points** as of December 2021[280](index=280&type=chunk)[382](index=382&type=chunk) [Organizational Structure](index=125&type=section&id=C.%20Organizational%20Structure) Turkish joint stock company with wholly-owned subsidiaries operating its payment, logistics, and fintech strategic assets - The company's main operating subsidiaries are: **D-Ödeme**: Operates Hepsipay (e-money and payment services), **D-Fast**: Operates HepsiJet (last-mile delivery), **Hepsi Finansal**: Holding company for fintech, including Doruk Finansman[441](index=441&type=chunk)[442](index=442&type=chunk)[443](index=443&type=chunk) - The acquisition of Doruk Finansman, a consumer finance company, was completed on February 28, 2022, for a total transaction value of **TRY 20 million**[441](index=441&type=chunk)[446](index=446&type=chunk) [Property, Plant and Equipment](index=126&type=section&id=D.%20Property%2C%20Plant%20and%20Equipment) Primary physical assets are seven leased fulfillment centers across Turkey, totaling **143.5 thousand square meters**, with owned warehouse equipment Fulfillment Center Network | Fulfillment Center Location | Size (thousand sq. meters) | | :--- | :--- | | Gebze/Kocaeli | 85.0 | | Tuzla | 12.0 | | İzmir | 15.4 | | Ankara | 11.5 | | Adana | 12.6 | | Diyarbakır | 4.3 | | Erzurum | 2.6 | | **Total** | **143.5** | - All fulfillment centers are operated under lease agreements with third parties[447](index=447&type=chunk) [Operating And Financial Review And Prospects](index=128&type=section&id=Item%205.%20Operating%20And%20Financial%20Review%20And%20Prospects) Analyzes FY2021 financial performance, highlighting revenue growth, widening net loss from investments, and boosted IPO-driven liquidity [Operating Results](index=158&type=section&id=A.%20Operating%20Results) FY2021 revenues grew **18.5%** while net loss widened to **TRY 700.1 million** due to increased operating expenses, partially offset by financial income Consolidated Statements of Comprehensive Loss | Metric (TRY million) | 2021 | 2020 | YoY Change (%) | | :--- | :--- | :--- | :--- | | **Revenues** | **7,558.0** | **6,375.7** | **+18.5%** | | Sales of goods | 6,134.4 | 5,301.9 | +15.7% | | Marketplace revenues | 601.3 | 603.2 | -0.3% | | Delivery services revenue | 740.2 | 445.9 | +66.0% | | **Operating Loss** | **(1,843.5)** | **(181.0)** | **+918.5%** | | **Net Loss** | **(700.1)** | **(474.5)** | **+47.5%** | - The increase in net loss was primarily driven by higher operating expenses: **Advertising expenses** increased by **131.9%** to **TRY 1.5 billion**, **Payroll and outsource staff expenses** increased by **147.8%** to **TRY 806.1 million**, which includes **TRY 206.5 million** in share-based payment expenses[576](index=576&type=chunk)[578](index=578&type=chunk)[579](index=579&type=chunk) - Financial income surged to **TRY 2.16 billion** in 2021 from **TRY 102.9 million** in 2020, mainly due to foreign exchange gains on U.S. dollar-denominated cash balances following the IPO[585](index=585&type=chunk) [Liquidity and Capital Resources](index=162&type=section&id=B.%20Liquidity%20and%20Capital%20Resources) Liquidity significantly improved in 2021 due to IPO proceeds, despite negative free cash flow driven by increased capital expenditures - Received approximately **$469.3 million** in net proceeds from its July 2021 IPO, substantially boosting its cash position[589](index=589&type=chunk)[849](index=849&type=chunk) Liquidity and Capital Resources Summary | Metric (TRY million) | 2021 | 2020 | | :--- | :--- | :--- | | Cash and cash equivalents | 3,813.5 | 592.6 | | Net Working Capital | (2,584.6) | (1,160.3) | | Free Cash Flow | (124.1) | 341.4 | - Capital expenditures increased to **TRY 228.5 million** in 2021 from **TRY 100.1 million** in 2020, driven mainly by website development costs. A significant increase is expected in 2022 due to inflation, currency depreciation, and investments in strategic assets like HepsiJet and Hepsipay[618](index=618&type=chunk)[619](index=619&type=chunk)[620](index=620&type=chunk) [Research and Development, Patents and Licenses, etc.](index=174&type=section&id=C.%20Research%20and%20Development%2C%20Patents%20and%20Licenses%2C%20etc.) Conducts R&D at two Istanbul centers, protecting intellectual property through trademarks, copyrights, and patents, holding **one patent** and **ten pending applications** - The company operates two certified R&D centers in Istanbul[627](index=627&type=chunk) - As of December 31, 2021, the company held **one patent** and had **ten pending patent applications**[628](index=628&type=chunk) [Directors, Senior Management And Employees](index=174&type=section&id=Item%206.%20Directors%2C%20Senior%20Management%20And%20Employees) Outlines leadership, compensation, and workforce, covering board composition, executive compensation, and employee growth [Directors and Senior Management](index=174&type=section&id=A.%20Directors%20and%20Senior%20Management) Led by a **nine-member** board, chaired by the founder, with a legal proceeding against the founder posing a potential risk to her board position - The Board of Directors is composed of **nine members**, led by founder and Chairwoman Hanzade Vasfiye Doğan Boyner[631](index=631&type=chunk)[634](index=634&type=chunk) - A legal proceeding from 2016, related to the founder's previous board membership at Petrol Ofisi between 2007-2010, is ongoing. An adverse outcome could require her to step down from her position as a director of the Company[658](index=658&type=chunk)[663](index=663&type=chunk) [Compensation](index=184&type=section&id=B.%20Compensation) Total compensation for executives and board members was **TRY 224.8 million** in 2021, with a new Incentive Plan adopted post-IPO including cash and equity awards - Total compensation for executive officers and board members was **TRY 224.8 million** for the year ended December 31, 2021[677](index=677&type=chunk) - A new Incentive Plan was adopted in March 2021, which includes cash awards, RSUs, and PSUs. The cash award portion of **TRY 121.2 million** was paid in Q4 2021 following the successful IPO[678](index=678&type=chunk)[683](index=683&type=chunk) - The equity portion of the incentive plan reserves up to **6.5 million Class B ordinary shares**, which will vest over a **three-year period** beginning **18 months** after the IPO date[687](index=687&type=chunk)[689](index=689&type=chunk) [Board Practices](index=186&type=section&id=C.%20Board%20Practices) Board established audit, risk, and corporate governance committees, relying on foreign private issuer and controlled company exemptions from Nasdaq rules - The board has three key committees: Audit, Risk, and Corporate Governance[700](index=700&type=chunk) - As a foreign private issuer and a controlled company, the company relies on exemptions from certain Nasdaq corporate governance standards, including the requirement for a majority-independent board and a fully independent compensation committee[713](index=713&type=chunk)[877](index=877&type=chunk) [Employees](index=189&type=section&id=D.%20Employees) Employee base grew significantly to **3,789** by year-end 2021, primarily in **Operations (1,145 employees)** and **Call Center (694 employees)**, with no union representation Employee Count by Year | Year | Number of Employees | | :--- | :--- | | 2021 | 3,789 | | 2020 | 2,432 | | 2019 | 1,218 | - The company's employees are not represented by any labor unions[721](index=721&type=chunk) [Major Shareholders And Related Party Transactions](index=191&type=section&id=Item%207.%20Major%20Shareholders%20And%20Related%20Party%20Transactions) Details ownership structure, with founder holding majority voting power, and transactions with Doğan family-controlled entities [Major Shareholders](index=191&type=section&id=A.%20Major%20Shareholders) Founder Hanzade Vasfiye Doğan Boyner holds **71.1%** of total voting power, making Hepsiburada a 'controlled company', with other significant shareholders including TurkCommerce B.V Major Shareholders and Voting Power | Shareholder | Class B Share % | Total Voting Power % | | :--- | :--- | :--- | | Hanzade V. Doğan Boyner | 10.4% | 71.1% | | Vuslat Doğan Sabancı | 17.0% | 5.5% | | Yaşar B. Doğan Faralyalı | 17.0% | 5.5% | | Arzuhan Doğan Yalçındağ | 15.5% | 5.0% | | TurkCommerce B.V. | 16.6% | 5.4% | - The company is a controlled company due to the founder's majority voting power, which is derived from Class A shares that carry **15 votes per share**[723](index=723&type=chunk)[725](index=725&type=chunk) [Related Party Transactions](index=194&type=section&id=B.%20Related%20Party%20Transactions) Conducts market-term transactions with Doğan family-controlled entities and has a post-IPO Shareholders' Agreement granting TurkCommerce B.V. certain governance rights - In 2021, the company engaged in transactions with entities controlled by the Doğan family, totaling **TRY 89.7 million** in purchases and **TRY 8.6 million** in sales[735](index=735&type=chunk) - A post-IPO Shareholders' Agreement grants TurkCommerce B.V. the right to nominate one director and provides veto rights over certain decisions as long as it maintains at least a **7.5%** ownership stake[748](index=748&type=chunk)[751](index=751&type=chunk) - The company maintains directors' and officers' (D&O) liability insurance with an aggregate coverage of **$30 million**[743](index=743&type=chunk) [Financial Information](index=200&type=section&id=Item%208.%20F%C4%B1nanc%C4%B1al%20Informat%C4%B1on) Covers ongoing class action lawsuits alleging misleading IPO statements and the company's policy to retain earnings for growth - The company is a defendant in two putative class action lawsuits filed in New York in September and October 2021. The complaints allege that the IPO Registration Statement contained misleading statements regarding the company's revenue and GMV growth[757](index=757&type=chunk)[758](index=758&type=chunk)[759](index=759&type=chunk) - The company has never declared or paid cash dividends and intends to retain all available funds for future operations and expansion[762](index=762&type=chunk) [Additional Information](index=203&type=section&id=Item%2010.%20Additional%20Information) Details articles of association, material contracts, Turkish exchange controls, and U.S. federal income tax considerations for ADS holders - Dividends paid to holders of ADSs who are not tax residents in Turkey are subject to a **15% withholding tax**[245](index=245&type=chunk)[788](index=788&type=chunk) - The company does not believe it was a Passive Foreign Investment Company (PFIC) for the 2021 taxable year and does not expect to be treated as one in the foreseeable future, though this is a factual determination made annually[174](index=174&type=chunk)[813](index=813&type=chunk) [Quantitative And Qualitative Disclosures About Market Risk](index=214&type=section&id=Item%2011.%20Quantitative%20And%20Qualitative%20Disclosures%20About%20Market%20Risk) Exposed to foreign currency and interest rate risks, assessed to minimize adverse effects and maintain optimal capital structure - The company's primary market risks are foreign currency risk and interest rate risk[829](index=829&type=chunk) [Description Of Securities Other Than Equity Securities](index=214&type=section&id=Item%2012.%20Descr%C4%B1pt%C4%B1on%20Of%20Secur%C4%B1t%C4%B1es%20Other%20Than%20Equ%C4%B1ty%20Secur%C4%B1t%C4%B1es) Details terms of American Depositary Shares (ADSs), their representation of Class B ordinary shares, and associated fees payable by holders - Each American Depositary Share (ADS) represents one Class B ordinary share[833](index=833&type=chunk) - ADS holders are subject to various fees payable to the depositary, including up to $5.00 per 100 ADSs for issuance or cancellation and up to $0.05 per ADS for cash distributions[834](index=834&type=chunk) Part II [Material Modifications To The Rights Of Security Holders And Use Of Proceeds](index=220&type=section&id=Item%2014.%20Material%20Modifications%20To%20The%20Rights%20Of%20Security%20Holders%20And%20Use%20Of%20Proceeds) Post-IPO, the company received **$469.3 million** in net proceeds, using **$148.2 million** for general corporate purposes by year-end 2021 - The company received net proceeds of approximately **$469.3 million** from its IPO in July 2021[849](index=849&type=chunk) - As of December 31, 2021, **$148.2 million** of the IPO proceeds had been used for general corporate purposes, including working capital and capital expenditures[852](index=852&type=chunk) [Controls And Procedures](index=220&type=section&id=Item%2015.%20Controls%20And%20Procedures) Management concluded disclosure controls were ineffective as of December 31, 2021, due to two material weaknesses in internal financial controls - Management concluded that disclosure controls and procedures were not effective as of December 31, 2021[854](index=854&type=chunk) - Two material weaknesses were identified: **Complex IFRS Transactions**: Ineffective controls led to an overstatement of stock-based compensation fair value (**TRY 54 million** adjustment) and misclassification of time deposits (**TRY 133.6 million** reclassification), **IT General Controls (ITGCs)**: A lack of segregation of duty controls and proper documentation for access rights and software changes for a new IT product[858](index=858&type=chunk)[859](index=859&type=chunk)[860](index=860&type=chunk) - A remediation plan is underway, which includes forming a dedicated IFRS team, engaging third-party consultants, expanding internal control staff, and improving IT control procedures[860](index=860&type=chunk) [Principal Accountant Fees And Services](index=224&type=section&id=Item%2016C.%20Principal%20Accountant%20Fees%20And%20Services) Total fees to Guney Bagimsiz Denetim Ve Serbest Muhasebeci Mali Musavirlik A.S. for FY2021 were **TRY 9.6 million**, primarily for pre-approved audit services Principal Accountant Fees | Fee Category (TRY million) | 2021 | 2020 | | :--- | :--- | :--- | | Audit Fees | 8.6 | 4.3 | | Audit-related Fees | 1.0 | 3.8 | | Tax Fees | — | — | | All Other Fees | — | — | | **Total Fees** | **9.6** | **8.1** | [Corporate Governance](index=226&type=section&id=Item%2016G.%20Corporate%20Governance) As a foreign private issuer and controlled company, Hepsiburada leverages Nasdaq exemptions, following Turkish corporate governance practices - The company relies on exemptions available to foreign private issuers and controlled companies, and does not comply with several Nasdaq corporate governance rules, including: Requirement for a majority-independent board of directors, Requirement for compensation and nomination committees to be composed entirely of independent directors, Certain requirements for shareholder approval of transactions[877](index=877&type=chunk)[878](index=878&type=chunk) Part III [Financial Statements](index=231&type=section&id=Item%2018.%20Financial%20Statements) Audited consolidated financial statements for D-MARKET Elektronik Hizmetler and subsidiaries for FY2021 and 2020 are presented under IFRS Consolidated Balance Sheets | (in thousands TRY) | 2021 | 2020 | | :--- | :--- | :--- | | **Total Assets** | **7,881,363** | **1,964,957** | | Total Current Assets | 7,085,012 | 1,689,831 | | **Total Liabilities** | **5,205,187** | **2,752,289** | | Total Current Liabilities | 5,000,549 | 2,656,145 | | **Total Equity** | **2,676,176** | **(787,332)** | Consolidated Statements of Comprehensive Loss | (in thousands TRY) | 2021 | 2020 | 2019 | | :--- | :--- | :--- | :--- | | **Revenues** | **7,558,021** | **6,375,727** | **2,603,735** | | Operating Loss | (1,843,528) | (181,012) | 101,115 | | **Loss for the year** | **(700,078)** | **(474,516)** | **(131,647)** | | **Total comprehensive loss** | **(703,368)** | **(476,500)** | **(132,869)** | Consolidated Statements of Cash Flows | (in thousands TRY) | 2021 | 2020 | 2019 | | :--- | :--- | :--- | :--- | | Net cash from operating activities | 89,476 | 441,361 | 363,780 | | Net cash used in investing activities | (1,095,785) | (99,947) | (53,340) | | Net cash from financing activities | 3,291,191 | (18,887) | (170,721) | | **Cash at end of year** | **3,812,605** | **592,281** | **281,982** |

D-MARKET Elektronik Hizmetler ve Ticaret Anonim Sirketi (NASDAQ:HEPS) Q4 2021 Earnings Conference Call March 24, 2022 9:00 AM ET Company Participants Helin Celikbilek - Investor Relations Director Mehmet Murat Emirdağ - Chief Executive Officer Halil Korhan Öz - Chief Financial Officer Conference Call Participants Miriam Josiah - Morgan Stanley Hanzade Kilickiran - JPMorgan Operator Ladies and gentlemen, thank you for standing by. I am Gail, your Chorus Call Operator. Welcome and thank you for joining the He ...

[Financial and Operational Highlights](index=1&type=section&id=Hepsiburada%20Announces%20Fourth%20Quarter%20and%20Full%20Year%202021%20Financial%20Results) [Fourth Quarter 2021 Highlights](index=1&type=section&id=Fourth%20Quarter%202021%20Financial%20and%20Operational%20Highlights) In Q4 2021, Hepsiburada achieved **significant growth** in **Gross Merchandise Value (GMV)** and **order volume**, with a **52.5%** and **53.4% increase year-over-year**, respectively. The **active customer base expanded to 11.3 million**. However, **EBITDA declined to negative TRY 676.7 million** due to **increased advertising and payroll expenses**. Notably, the company reported a **net income of TRY 714.0 million**, **primarily driven by substantial net foreign exchange gains** Q4 2021 Key Metrics vs. Q4 2020 | Metric | Q4 2021 (TRY) | Q4 2020 (TRY) | Change (YoY) | | :--- | :--- | :--- | :--- | | GMV | 9.4 billion | 6.1 billion | +52.5% | | Revenue | 2.76 billion | 2.20 billion | +25.4% | | Number of Orders | 17.4 million | 11.3 million | +53.4% | | Active Customers | 11.3 million | 9.0 million | +24.8% | | Frequency | 4.7 | 3.9 | +22.9% | | Active Merchants | 75.0 thousand | 44.7 thousand | +67.9% | | EBITDA | (676.7 million) | (182.7 million) | -270.4% | | Net Income/(Loss) | 714.0 million | (322.8 million) | n.m. | - The **shift to profitability** in Q4 was **primarily due to TRY 1.66 billion in net foreign exchange gains** from **U.S. dollar-denominated bank deposits**, compared to a negligible gain in Q4 2020[4](index=4&type=chunk) - The **decline in EBITDA** was **mainly attributed to increased advertising and payroll expenses**, and to a lesser extent, **lower gross contribution**[4](index=4&type=chunk) [Full Year 2021 Highlights](index=2&type=section&id=Full%20Year%202021%20(Unaudited)%20Financial%20and%20Operational%20Highlights) For the full year 2021, Hepsiburada's **GMV grew by 54.0% to TRY 26.2 billion**, **surpassing its guidance**. **Revenue increased by 18.5%**, with the **slower growth rate relative to GMV reflecting a strategic shift towards the marketplace model**. The company experienced a **significant decline in EBITDA to negative TRY 1.63 billion**, **driven by higher customer discounts, advertising costs, and payroll expenses**. The **net loss for the year was TRY 625.8 million**, which was **mitigated by significant foreign exchange gains** Full Year 2021 Key Metrics vs. Full Year 2020 | Metric | 2021 (TRY) | 2020 (TRY) | Change (YoY) | | :--- | :--- | :--- | :--- | | GMV | 26.2 billion | 17.0 billion | +54.0% | | Revenue | 7.56 billion | 6.38 billion | +18.5% | | Number of Orders | 53.5 million | 34.9 million | +53.4% | | Share of Marketplace GMV | 67.9% | 59.0% | +8.9 pp | | EBITDA | (1.63 billion) | (87.8 million) | n.m. | | Net Loss | (625.8 million) | (474.5 million) | +31.9% | | Free Cash Flow | (124.1 million) | 341.4 million | n.m. | - The difference between the **54.0% GMV growth** and **18.5% revenue growth** is **mainly due to an 8.9 percentage point shift in GMV mix towards the Marketplace (3P)**, where **revenue is recognized on a net basis**, and **higher campaign costs**[8](index=8&type=chunk) - The **decline in EBITDA** was **attributed to lower gross contribution** (especially from Q3 discounts), **increased advertising costs**, and **higher payroll expenses amid intensified competition**[8](index=8&type=chunk) [CEO Commentary](index=2&type=section&id=CEO%20Commentary) The CEO highlighted the company's **strong Q4 performance**, which led to **exceeding the full-year GMV growth outlook** despite **currency volatility** and a **competitive market**. For 2022, the strategy focuses on **scaling growth drivers**, **enhancing logistics and technology**, and using **data-driven marketing**. A **key priority** is achieving **sustainable growth** and **improving profitability** through **disciplined cash and cost management**, with a **commitment to leading the digitalization of commerce in Turkey** - The company **exceeded its full-year GMV growth outlook**, reaching **TRY 26 billion**, **driven by strong execution** in the fourth quarter[6](index=6&type=chunk) - In 2022, the company will **focus on scaling growth drivers**, **building on strategic assets**, and **investing in logistics, technology, and data-driven marketing**[7](index=7&type=chunk) - A **high priority for the future** is pursuing **sustainable growth** by **improving profitability** through **disciplined cash and cost management**[10](index=10&type=chunk) - Recent innovations include the **nationwide rollout of HepsiJet XL** for large items and the **introduction of a buy-now-pay-later solution** within the **Hepsipay Wallet**[9](index=9&type=chunk) [Financial Outlook and Business Developments](index=4&type=section&id=Financial%20Outlook) [Financial Outlook](index=4&type=section&id=Financial%20Outlook) For the full year 2022, Hepsiburada expects **approximately 50% GMV growth** compared to 2021, despite uncertainties from regional geopolitical headwinds and high inflation. The company anticipates **Q1 2022 GMV growth to be stronger** than the rest of the year. Management has **no plans to raise additional capital** in the next 18 months and is **focused on improving margins** through **disciplined cash and cost management** - The company **expects to achieve around 50% GMV growth** for the full year of 2022 compared to 2021[16](index=16&type=chunk) - **GMV growth in Q1 2022 is expected to be higher** than the growth rate for the rest of the year[14](index=14&type=chunk) - The company has **no plans to raise capital** during the next 18 months and will **focus on improving margins and profitability**[16](index=16&type=chunk) [Key Business Developments](index=4&type=section&id=Key%20Business%20Developments) The company's **key business developments centered on strong performance** during the **peak 'Legendary November' season**, **driven by its hybrid 1P-3P model and affordability solutions**. Growth was **fueled by an expanding customer base and increased order frequency**. The **Marketplace continued to scale**, with **significant increases in active merchants and SKUs**. **Customer experience remained a focus**, evidenced by a **high Net Promoter Score** and **enhancements in logistics services like HepsiJet**. **Strategic assets Hepsipay and HepsiExpress saw rapid user adoption and service expansion**, including the **launch of a BNPL solution**. The company also **continued its commitment to social programs**, notably **empowering women entrepreneurs** [GMV and Order Growth](index=5&type=section&id=GMV%20and%20Order%20Growth) **Q4 2021 GMV grew 52.5% YoY to TRY 9.4 billion**, with **orders reaching a quarterly high of 17.4 million** (**+53.4% YoY**). This growth was **driven by a combination of an increased Active Customer base** (to **11.3 million**) and **higher purchase frequency** (to **4.7**). For the full year, **GMV grew 54% to TRY 26.2 billion**, with **total orders up 53.4% to 53.5 million** - **Q4 2021 GMV growth of 52.5% was achieved on top of a strong 115% GMV growth** in Q4 2020[21](index=21&type=chunk) - For the full year 2021, **GMV per Active Customer grew by 23.4%**, and **frequency per new cohort customer increased by approximately 19%** compared to 2020[22](index=22&type=chunk)[23](index=23&type=chunk) [Marketplace](index=5&type=section&id=Marketplace) The **Marketplace's share of total GMV increased to 65.4%** in Q4 2021. The **active merchant base grew by nearly 68% YoY to 75,000**, and the **number of SKUs more than doubled to 90.3 million**. The company **enhanced merchant support** through the new HepsiPartner app and **expanded its value-added services**. **HepsiJet delivered 52% of Marketplace parcels** in Q4, and **fulfillment services (HepsiLojistik) were expanded to all seven distribution centers** Marketplace Metrics (as of Dec 31, 2021) | Metric | Q4 2021 | vs. Q4 2020 | | :--- | :--- | :--- | | Share of Marketplace GMV | 65.4% | +5.0 pp | | Active Merchant Base | 75.0 thousand | +67.9% | | Number of SKUs | 90.3 million | +103% | - **HepsiJet delivered 52% of total Marketplace parcels** in Q4 2021, a **significant increase** from **16%** for the full year 2020[28](index=28&type=chunk) - **Value-added services showed strong adoption**: **HepsiLojistik (fulfillment) served 191 merchants**, and **HepsiAd (adtech) was used by over 25,000 merchants** in 2021[29](index=29&type=chunk)[30](index=30&type=chunk) [Customer Experience](index=6&type=section&id=Customer%20Experience) Hepsiburada **maintained its Net Promoter Score (NPS) leadership** in the Turkish e-commerce market with a **score of 68**. The company's **logistics arm, HepsiJet, was instrumental in this**, **delivering 79% of retail (1P) orders on the next day** in 2021 and **handling nearly 50% of total platform parcels**. In February 2022, the company **completed the nationwide rollout of HepsiJet XL**, its **two-man handling service for large items**, which **achieved a 98% customer satisfaction score** in Q4 2021 - **Maintained NPS leadership** in the Turkish e-commerce market with a **score of 68** in December 2021[33](index=33&type=chunk) - **HepsiJet delivered 79% of retail (1P) orders on the next day** in 2021 and **handled nearly 50% of total Hepsiburada parcels** for the year[38](index=38&type=chunk) - **HepsiJet XL**, the **two-man handling cargo service**, was **rolled out to all 81 cities in Turkey by February 2022** and **recorded a ~98% customer satisfaction score** in Q4 2021[39](index=39&type=chunk) [New Strategic Assets (Hepsipay and HepsiExpress)](index=7&type=section&id=New%20Strategic%20Assets:%20Hepsipay%20and%20HepsiExpress) **Hepsipay Wallet reached 5.2 million customers** by the end of 2021, with **37% of total GMV passing through it** in Q4. A **key development was the launch of a 'Buy Now Pay Later' (BNPL) solution** in early Q1 2022. The company also **acquired consumer finance company Doruk Finansman to expand its fintech capabilities**. **HepsiExpress**, the **on-demand grocery service**, **expanded its ecosystem to over 60 brands across roughly 2,100 stores** - **Hepsipay Wallet reached 5.2 million customers** by year-end 2021, just six months after its launch[41](index=41&type=chunk) - **Launched the first end-to-end digital 'Buy Now Pay Later' (BNPL) solution** in the Turkish e-commerce market in Q1 2022[43](index=43&type=chunk) - **Acquired consumer finance company Doruk Finansman** in February 2022 to offer additional financing solutions to customers[44](index=44&type=chunk) - **HepsiExpress expanded to include over 60 brands** from national and regional retailers across **approximately 2,100 stores** in 2021[46](index=46&type=chunk) [Social Consciousness, Diversity and Inclusion](index=8&type=section&id=Social%20Consciousness,%20Diversity%20and%20Inclusion) The company **continued its 'Technology Empowerment for Women Entrepreneurs' program**, launched in 2017. As of December 31, 2021, the program has **reached 28,781 women entrepreneurs** across Turkey, with **approximately 13,000 benefiting from free shipping incentives**. The initiative **received eight awards** in 2021 - As of December 31, 2021, the **'Technology Empowerment for Women Entrepreneurs' program has reached 28,781 women entrepreneurs**[49](index=49&type=chunk) [Financial Review](index=9&type=section&id=Hepsiburada%20Financial%20Review) [Revenue](index=9&type=section&id=Revenue) Full-year 2021 **revenue grew 18.5% to TRY 7.56 billion**, while **Q4 2021 revenue grew 25.4% to TRY 2.76 billion**. The **significant gap between revenue growth and the much higher GMV growth** (**54.0% for FY21**) is **primarily due to the strategic shift towards the Marketplace (3P) model**, where **revenue is recognized on a net commission basis**, and an **increase in customer discounts which are deducted from revenue** Revenue by Segment (TRY million) | Segment | FY 2021 (TRY) | FY 2020 (TRY) | YoY % Change | | :--- | :--- | :--- | :--- | | Sale of goods (1P) | 6.13 billion | 5.30 billion | +15.7% | | Marketplace revenue (3P) | 601.3 million | 603.2 million | -0.3% | | Delivery service revenue | 740.2 million | 445.9 million | +66.0% | | **Total Revenue** | **7.56 billion** | **6.38 billion** | **+18.5%** | - The **0.3% decline in full-year Marketplace revenue**, despite a **77.2% growth in Marketplace GMV**, was **mainly due to higher customer discounts**, particularly in Q3 2021[59](index=59&type=chunk) - **Delivery service revenue grew 66.0%** in 2021, **driven by a 53.4% rise in order numbers** and an **expansion of HepsiJet's services to third parties**[60](index=60&type=chunk) [Gross Contribution](index=11&type=section&id=Gross%20Contribution) For the full year 2021, **gross contribution increased by 21.1% to TRY 1.85 billion**. However, the **gross contribution margin as a percentage of GMV declined by 1.9 percentage points to 7.1%**, **primarily due to increased customer discounts amid intensified market competition**, especially in Q3 2021. The **margin showed significant sequential improvement** in Q4 2021, **rising 2.7 percentage points from Q3 2021** Gross Contribution Analysis | Metric | FY 2021 (TRY) | FY 2020 (TRY) | Change | | :--- | :--- | :--- | :--- | | Gross Contribution | 1.85 billion | 1.53 billion | +21.1% | | Gross Contribution Margin (% of GMV) | 7.1% | 9.0% | -1.9 pp | - The **decline in the annual gross contribution margin** was **mainly due to increased customer discounts**, particularly in Q3 2021, resulting from a slowdown in market growth and intensified competition[66](index=66&type=chunk) - The **gross contribution margin improved significantly by 2.7 percentage points** in Q4 2021 compared to Q3 2021, **due to a reduction in customer discounts** despite the peak shopping season[64](index=64&type=chunk) [Operating Expenses](index=12&type=section&id=Operating%20Expenses) Full-year 2021 **net operating expenses increased by 42.3% to TRY 9.33 billion**. This was **driven by a 131.8% surge in advertising expenses to TRY 1.50 billion** and a **164.2% rise in payroll expenses to TRY 859.3 million**, which **included share-based payments**. **Shipping expenses also grew 76.2%**. Despite the absolute increase, **net operating expenses as a percentage of GMV improved by 2.9 percentage points to 35.6%**, **mainly due to a lower cost of inventory sold as a percentage of GMV from the shift to the marketplace model** Operating Expenses as a % of GMV | Expense Category | FY 2021 | FY 2020 | Change (pp) | | :--- | :--- | :--- | :--- | | Advertising expenses | 5.7% | 3.8% | +1.9 pp | | Payroll and staff expenses | 3.3% | 1.9% | +1.4 pp | | Shipping and packaging expenses | 3.6% | 3.2% | +0.5 pp | | Cost of inventory sold | 21.8% | 28.5% | -6.7 pp | - The **131.8% increase in advertising expenses** in 2021 was **due to investments in brand and growth drivers** in a highly competitive environment, leading to **costlier GMV growth**[71](index=71&type=chunk)[72](index=72&type=chunk) - The **164.2% increase in payroll expenses** was due to **talent onboarding for core operations and strategic assets**, **salary rises**, and **TRY 259.7 million in share-based payment expenses**[73](index=73&type=chunk) [Share Based Payment](index=14&type=section&id=Share%20Based%20Payment) The company made a **cash settlement payment of TRY 121.2 million** in Q4 2021 related to its share-based payment plan, **triggered by the successful IPO**. For the **equity-settled portion of the plan**, the company **recorded an expense of TRY 138.5 million** as of December 31, 2021, related to **vesting conditions**. **No provision has been made for performance target-based payments as the criteria have not yet been set** - The company paid the **cash-settled part of its pre-IPO incentive plan** in Q4 2021, amounting to **TRY 121.2 million**[78](index=78&type=chunk) - As of December 31, 2021, the company **recorded TRY 138.5 million as an expense** for the **equity-settled portion of the plan** based on **vesting conditions**[79](index=79&type=chunk) [Financial Income and Expenses](index=14&type=section&id=Financial%20Income%20and%20Expenses) For the full year 2021, the company recorded a **significant increase in financial income to TRY 2.16 billion**, **primarily driven by TRY 2.01 billion in foreign exchange gains** on its **U.S. dollar-denominated bank deposits (including IPO proceeds)** due to the **Turkish Lira's depreciation**. **Financial expenses also rose to TRY 1.02 billion**, **mainly from foreign exchange losses on U.S. dollar-denominated trade payables** and **higher commission expenses for early collection of credit card receivables** - Full-year **financial income surged to TRY 2.16 billion** from **TRY 102.9 million** in 2020, **mainly due to a TRY 2.01 billion increase in foreign exchange gains**[82](index=82&type=chunk) - The **FX gains were generated from U.S. dollar-denominated bank deposits and financial investments** following the **IPO**, as the USD appreciated **26.6%** against the TRY during the year[82](index=82&type=chunk) - Full-year **financial expenses increased to TRY 1.02 billion** from **TRY 396.4 million** in 2020, **driven by FX losses on USD-denominated trade payables** and **higher credit card commission costs**[83](index=83&type=chunk)[84](index=84&type=chunk) [Net Income / Loss and EBITDA](index=15&type=section&id=Net%20Income%20/%20Loss%20and%20EBITDA) In Q4 2021, the company reported a **net income of TRY 714.0 million**, a **significant turnaround from a net loss of TRY 322.8 million** in Q4 2020, **driven by TRY 1.66 billion in net foreign exchange gains**. For the full year 2021, the **net loss widened to TRY 625.8 million** from **TRY 474.5 million** in 2020. Full-year **EBITDA was negative TRY 1.63 billion**, a **sharp decline from negative TRY 87.8 million** in 2020, resulting in an **EBITDA margin of -6.2% of GMV** Profitability Metrics (TRY million) | Metric | FY 2021 (TRY) | FY 2020 (TRY) | Q4 2021 (TRY) | Q4 2020 (TRY) | | :--- | :--- | :--- | :--- | :--- | | Net Income/(Loss) | (625.8 million) | (474.5 million) | 714.0 million | (322.8 million) | | EBITDA | (1.63 billion) | (87.8 million) | (676.7 million) | (182.7 million) | | EBITDA as % of GMV | (6.2)% | (0.5)% | (7.2)% | (3.0)% | - The **full-year decline in EBITDA as a percentage of GMV** was **driven by a 1.9pp decrease in gross contribution margin**, a **1.9pp rise in advertising expenses**, and a **1.4pp rise in payroll expenses**[88](index=88&type=chunk) [Capital Expenditures](index=15&type=section&id=Capital%20Expenditures) **Capital expenditures for the full year 2021 more than doubled to TRY 214.8 million**, compared to **TRY 100.1 million** in 2020. The **investments were primarily directed towards product developments for the app, website, and mobile platforms**, as well as the **purchase of property and equipment to support growing operations** Capital Expenditures (TRY million) | Period | 2021 (TRY) | 2020 (TRY) | | :--- | :--- | :--- | | Full Year | 214.8 million | 100.1 million | | Q4 | 76.8 million | 37.3 million | [Liquidity and Capital Resources](index=16&type=section&id=Liquidity%20and%20Capital%20Resources) As of year-end 2021, the company held a **strong liquidity position** with **total cash and financial investments of approximately TRY 5.0 billion**, **significantly boosted by IPO proceeds**. **Free cash flow for the year was negative TRY 124.1 million**, a **decrease from positive TRY 341.4 million** in 2020, **mainly due to lower cash from operations**. **Negative net working capital increased**, **reflecting higher trade payables from increased business volume**. **Short-term bank borrowings were reduced** [Net Working Capital](index=16&type=section&id=Net%20Working%20Capital) **Negative net working capital increased to TRY 2.46 billion** as of December 31, 2021, from **negative TRY 1.16 billion** a year prior. This increase was **mainly driven by a TRY 2.04 billion rise in trade payables and payables to merchants**, **reflecting higher inventory procurement and operational expenses**. The **inventory balance also increased by TRY 869.3 million to mitigate supply chain risks** - **Negative net working capital more than doubled**, **primarily due to a significant increase in trade payables and payables to merchants**[91](index=91&type=chunk)[92](index=92&type=chunk) [Cash Flow](index=16&type=section&id=Cash%20Flow) For the full year 2021, **net cash provided by operating activities decreased significantly to TRY 89.5 million** from **TRY 441.4 million** in 2020. Consequently, **free cash flow turned negative to TRY 124.1 million** from a **positive TRY 341.4 million** in the prior year. The **decline in operating cash flow was primarily due to non-cash net foreign exchange differences and changes in working capital components like inventories and receivables** Cash Flow Summary (TRY million) | Metric | FY 2021 (TRY) | FY 2020 (TRY) | | :--- | :--- | :--- | | Net Cash from Operating Activities | 89.5 million | 441.4 million | | Free Cash Flow | (124.1 million) | 341.4 million | [Total Cash and Bank Borrowings](index=17&type=section&id=Total%20Cash%20and%20Bank%20Borrowings) As of December 31, 2021, **total cash and cash equivalents stood at TRY 3.95 billion**, a **substantial increase from TRY 592.6 million** at the end of 2020, **mainly due to IPO proceeds**. The company also held **TRY 1.02 billion in financial investments**. **Approximately 98.4% of the cash was held in U.S. dollars**. **Short-term bank borrowings decreased to TRY 193.2 million** from **TRY 347.4 million** - **Total cash and cash equivalents increased to TRY 3.95 billion**, **primarily from IPO proceeds**[98](index=98&type=chunk) - The company held an additional **TRY 1.02 billion in financial investments**, consisting of **U.S. dollar-based mutual funds**[99](index=99&type=chunk) - **Short-term bank borrowings were reduced to TRY 193.2 million** from **TRY 347.4 million year-over-year**[100](index=100&type=chunk) [Consolidated Financial Statements (Unaudited)](index=19&type=section&id=CONSOLIDATED%20FINANCIAL%20STATEMENTS) [Consolidated Balance Sheets](index=19&type=section&id=CONSOLIDATED%20BALANCE%20SHEETS) The consolidated balance sheet as of December 31, 2021, shows **total assets of TRY 7.88 billion**, a **significant increase from TRY 1.96 billion** in 2020. This was **driven by a surge in current assets**, **particularly cash and financial investments from the IPO**. **Total liabilities increased to TRY 5.08 billion** from **TRY 2.75 billion**, **mainly due to higher trade payables**. **Total equity turned positive to TRY 2.80 billion** from a **deficit of TRY 787.3 million**, **reflecting the capital increase from the IPO** Balance Sheet Summary (TRY thousands) | Item | 31 Dec 2021 (TRY Thousands) | 31 Dec 2020 (TRY Thousands) | | :--- | :--- | :--- | | **Total Assets** | **7.88 billion** | **1.96 billion** | | Total Current Assets | 7.09 billion | 1.69 billion | | **Total Liabilities** | **5.08 billion** | **2.75 billion** | | Total Current Liabilities | 4.87 billion | 2.66 billion | | **Total Equity** | **2.80 billion** | (787.3 million) | [Consolidated Statements of Comprehensive Loss](index=20&type=section&id=CONSOLIDATED%20STATEMENTS%20OF%20COMPREHENSIVE%20LOSS) The consolidated statement of comprehensive loss for the twelve months ended December 31, 2021, reports a **net loss of TRY 625.8 million**, compared to a **net loss of TRY 474.5 million** in 2020. The **operating loss widened significantly to TRY 1.77 billion** from **TRY 181.0 million**. However, this was **substantially offset by net financial income**, **primarily from foreign exchange gains**. For Q4 2021, the company **posted a net income of TRY 714.0 million**, a **reversal from a net loss of TRY 322.8 million** in Q4 2020 Comprehensive Loss Summary (TRY thousands) | Item | Twelve Months 2021 (TRY Thousands) | Twelve Months 2020 (TRY Thousands) | | :--- | :--- | :--- | | Revenues | 7.56 billion | 6.38 billion | | Operating loss | (1.77 billion) | (181.0 million) | | (Loss)/income for the period | (625.8 million) | (474.5 million) | | Basic and diluted loss per share | (1.92) | (1.46) | [Consolidated Statements of Cash Flows](index=21&type=section&id=CONSOLIDATED%20STATEMENTS%20OF%20CASH%20FLOWS) For the year ended December 31, 2021, **net cash provided by operating activities was TRY 89.5 million**, a **sharp decrease from TRY 441.4 million** in 2020. **Net cash used in investing activities was TRY 1.01 billion**, **mainly for purchases of financial investments and capital expenditures**. **Net cash provided by financing activities was TRY 3.29 billion**, **dominated by proceeds from the IPO**. The company ended the year with a **net increase in cash and cash equivalents of TRY 2.37 billion** Cash Flow Summary (TRY thousands) | Item | 1 Jan – 31 Dec 2021 (TRY Thousands) | 1 Jan – 31 Dec 2020 (TRY Thousands) | | :--- | :--- | :--- | | Net cash provided by operating activities | 89.5 million | 441.4 million | | Net cash used in investing activities | (1.01 billion) | (99.9 million) | | Net cash provided by / (used in) financing activities | 3.29 billion | (18.9 million) | | **Net increase in cash and cash equivalents** | **2.37 billion** | **322.5 million** | [Supplementary Information](index=23&type=section&id=Supplementary%20Information) [Use of Non-IFRS Financial Measures](index=23&type=section&id=Use%20of%20Non-IFRS%20Financial%20Measures) This section defines and provides reconciliations for the **non-IFRS measures** used in the report: **EBITDA, Free Cash Flow, and Net Working Capital**. Management uses these metrics to **monitor underlying business performance, plan operations, and make strategic decisions**. **EBITDA is reconciled from net income/loss**, **Free Cash Flow from net cash from operating activities**, and **Net Working Capital from current assets and liabilities**. The **definition of Net Working Capital was revised in Q4 2021 to also exclude financial investments from current assets** - **EBITDA is defined as profit or loss for the period plus tax, financial expenses, depreciation, and amortization, less financial income**[116](index=116&type=chunk) - **Free Cash Flow is defined as net cash from operating activities less capital expenditures, plus proceeds from the sale of property and equipment**[116](index=116&type=chunk) - **Net Working Capital is defined as current assets (excluding cash, cash equivalents, and financial investments) minus current liabilities (excluding current bank borrowings and lease liabilities)**[116](index=116&type=chunk)[123](index=123&type=chunk) [Certain Definitions](index=26&type=section&id=Certain%20Definitions) This section provides definitions for **key operating performance indicators** used throughout the report. These include **Gross Merchandise Value (GMV), Active Customer, Frequency, and Gross Contribution**. These metrics are used by management and are **common in the e-commerce industry to gauge performance** - **GMV (Gross Merchandise Value)**: **Total value of orders sold through the platform, including VAT and shipping fees, before returns and cancellations**[128](index=128&type=chunk) - **Active Customer**: A user who purchased an item within the preceding 12-month period[128](index=128&type=chunk) - **Frequency**: The average number of orders per Active Customer over the preceding 12-month period[128](index=128&type=chunk) [Additional Information](index=17&type=section&id=Additional%20Information) The company provides updates on two key matters. First, the **acquisition of Doruk Finansman A.Ş., a Turkish consumer finance company, was completed on February 28, 2022**. Second, **two putative class-action lawsuits were filed against the company in New York in 2021 related to its IPO registration statement**. The company believes the **claims are without merit and plans to defend itself vigorously** - The **acquisition of consumer finance company Doruk Finansman was closed on February 28, 2022**[101](index=101&type=chunk) - **Two class-action lawsuits were filed in the U.S. alleging that the IPO registration statement omitted necessary facts**. The company plans to **vigorously defend against these claims**[103](index=103&type=chunk) [Forward Looking Statements](index=28&type=section&id=Forward%20Looking%20Statements) This section contains **standard legal disclaimers regarding forward-looking statements** made in the press release. It cautions that these statements, which include **financial outlook and strategic plans**, are based on current expectations and are **subject to numerous risks and uncertainties**. These risks include **macroeconomic conditions, the COVID-19 pandemic, supply chain disruptions, geopolitical conflicts, and competition**. Readers are advised **not to place undue reliance on these statements** - **Forward-looking statements include future GMV expectations, plans for new initiatives, and projections on growth and profitability**[132](index=132&type=chunk) - These statements involve **known and unknown risks**, including **global economic conditions, supply chain challenges, the conflict in Ukraine, and competitive pressures**, which could cause **actual results to differ materially**[132](index=132&type=chunk)[133](index=133&type=chunk)

D-MARKET Elektronik Hizmetler Tic. A.. (NASDAQ:HEPS) Q3 2021 Results Earnings Conference Call November 23, 2021 8:00 AM ET Company Participants Helin Celikbilek - Investor Relations Director Murat Emirda - Chief Executive Officer Korhan Öz - Chief Financial Officer Conference Call Participants Cesar Tiron - Bank of America Merrill Lynch Miriam Adisa - Morgan Stanley Cem Ãœnal - Goldman Sachs Hanzade Klçkran - JP Morgan Operator Ladies and gentlemen, thank you for standing by. I am Myrtle, your Chorus Call o ...