D-Market Elektronik Hizmetler ve Ticaret A.S. (NASDAQ:HEPS) Q4 2023 Earnings Call Transcript

Page 2 of 2

Nilhan Onal Gokcetekin: So let me start with the second question, our high-level expectations for ’24. Our progress and results clearly prove that our strategy works. Our sustainable, profitable growth will remain unchanged, and we maintain our commitment to the strategic priorities, which I think is going to be very relevant for Turkey in this changing macroeconomic context. We are also with higher e-commerce penetration. We will be waiting — expecting a higher B2B revenues from HepsiJet and Hepsipay and further solidify our group’s position. We anticipate a more tough environment in the second half of the year, given the tight macroprudential policies. However, our ability to build on our strong value proposition, our tailored payment options and affordability will differentiate us and continue to make us relevant for consumer demand.

I think this also macro context we have could provide other opportunities like lower credit card costs, further differentiates us from our competitors as well. So as much as there is an expectation for reduced demand in overall Turkey with higher digital population coming to e-commerce with our right to win in this macroeconomic context, we believe that we will be relevant and strong throughout the year. This brings me to answering the first question about competitors. If we start with the macroeconomic context on the need for affordability, we have the widest solution in the market by far. With BNPL shopping loans, with our own consumer financing company with mix checkout and payouts. I think these are going to be more and more relevant and will make us more competitive.

And also from logistics, we have a very strong network that we are adding new features for delivery services every month for our consumers as well. So I think competition will remain is it in Turkey, but we are the local player with high agility, widest affordability solution and with highest NPS and that’s why I believe we will continue to have rights to win in ’24 in Turkey.

Operator: [Operator Instructions]

Helin Celikbilek: So, okay, we have another question via e-mail that asks for 2024 revenues and margins.

Seckin Koseoglu: Our progress and results clearly prove that our strategy works. Our focus on sustainable and profitable growth remains unchanged for 2024 as well. We maintain our commitment to proven strategic priorities, emphasizing precision and delivery services, affordable shopping options and the exclusive benefits of our premium program. Additionally, the upward trajectory of our B2B revenues, as Nilhan mentioned, from HepsiAd, HepsiJet, and Hepsipay will further rise and solidify our group’s position. So, in 2024, we believe that we will continue to trend in our profitable growth trajectory like we have done in 2023.

Operator: [Operator Instructions] Ladies and gentlemen, there are no further questions at this time. Ms. Nilhan, back to you.

Nilhan Onal Gokcetekin: Thank you so much for your patience and listening to our call. We wish you an amazing day and amazing evening. Thank you.

Operator: The conference is now concluded and you may disconnect your telephone. Thank you for calling and have a good afternoon.

Follow D-Market Elektronik Hizmetler Ve Ticaret Anonim Sirketi

Page 2 of 2