Ladies and gentlemen, thank you for standing by. I’m Constantinos, your Chorus Call Operator. Welcome and thank you for joining me the Hepsiburada Conference Call and Live Webcast to present and discuss the Second Quarter 2021 Financial Results. All participants will be in listen-only mode and the conference is being recorded. The presentation will be followed by a question-and-answer session. At this time, I would like to turn the conference over to Ms. Helin Celikbilek, Investor Relations Director. Ms. Celikbilek, you may now proceed.

Thanks operator. Thank you for joining us today for Hepsiburada second quarter 2021 earnings call. I’m pleased to be joined on the call today by our CEO, Murat Emirdağ; and our CFO, Korhan Öz. The following discussion including responses to your questions reflects management’s views as of today’s date only. We do not undertake any obligation to update or revise this information, except as required by law. Certain statements made on today’s call are forward-looking statements. Actual results may differ materially from these forward-looking statements. Please refer to today’s earnings release as well as the risk factors described in the safe harbor slide of today’s presentation, today’s press release, the 6-K and our Prospectus filed with the SEC on July 1, 2021, and other SEC filings for information about factors, which could caused our actual results to differ materially from these forward-looking statements. Also, we will reference certain non-IFRS measures during today’s call, please refer to the appendix of our supplemental slide deck as well as today’s earnings press release for a presentation of the most directly comparable IFRS measure as well as the relevant IFRS to non-IFRS reconciliation. As a reminder, a replay of this call will be available on the Investor Relations page of Hepsiburada website. With that, I will hand it over to our CEO, Murat. Murat Emirdağ: Thanks, Helin. We are so excited to have our first earnings call ever as the only NASDAQ listed Turkish company. Before we dive into the second quarter results, I would like to take a moment to give an overview of our Super App ecosystem and focus on some of the key fundamentals that contribute to the success of Hepsiburada. Hepsiburada is a homegrown company that has played a fundamental role in the development of e-commerce in Turkey over the…

Ladies and gentlemen, at this time, we will begin the question-and-answer session. The first question is from the line of Tiron, Cesar with Bank of America. Please go ahead.

Yes. Hi. Good morning or good afternoon, everyone. Thanks for the call and the opportunity to take questions. I have four questions. Sorry about that. The first one is on the outlook for the market in 2H. By reading the press release and also from your comments, do I understand correctly that the outlook for H2 seems to be a little bit tougher than what you expected, probably one or two months ago, and that you need to invest more than expected to achieve the same GMV number? I just wanted to check if I understood that right. My second question would be on the take rate for 2Q. Can you give us some indication on the take rate? And also help us broadly understand, it looks like it dropped a little bit. Third question would be on the contribution margin comments from the press release. I just wanted to understand better dimension of discounts that you’ve given to your customers for temporary marketing campaigns, if you can help with that? And then, the last question would be on dimension from the press release that you’ve observed some increased demand for lower margin products. I just wanted to understand, if that has reversed into Q3 and what do you attribute this to? Thank you so much. I’m sorry for the many questions. Korhan Öz: For the first one, outlook -- whether outlook looks tougher or not. Well, the recent trends observed -- we observed in Q2 and early Q3 are reflected on the outlook, as well as the seasonality of our market, which favors the second half of the year. And the Turkish market is at an inflection point. And this is the right time for us to prioritize our growth. That is why we raise capital and are focused…

The next question is from the line of Adisa, Miriam with Morgan Stanley. Please go ahead.

Hi, everyone. Thanks for taking my questions. Firstly, just following up on the take rate. So, you mentioned that you’ve seen a shift from electronics from 1P to 3P. Just wondering what has been driving that, and do you see that specifically as a permanent shift? And then, also just on the discounts that you also mentioned as well. How much of this was sort of driven by any competitive pressures? Were there sort of more competitive pressures than you anticipated at the start of the quarter? And if you could just comment on the current competitive environment that you’re seeing at the moment? And then, finally, just on the payments, I think, you mentioned that it was -- the development was ahead of expectations. If you could just give a bit more color on that that’d be great. Thank you. Korhan Öz: Thank you, Miriam. For the take rate, well, we continue to widen our collection with expanding merchant base and competitive prices in the market by our strategic margin investments, as well as discounts given to our customers for campaigns. Accordingly, we invested in certain non-electronic categories, such as supermarkets to drive our order frequency and also invested in electronic categories to fortify our markets position. Please note that we are very strong in electronics, and in electronics, the biggest opportunity comes from offline. On the competitive environment, let me hand over to Murat. Murat Emirdağ: Let me just quickly address competition and let me take next question. I mean, let me remind you that we operate in this attractive market that has a large, young, urbanized and tech savvy population. We have been operating in this market, along with several players for many years and proven our growth trajectory. So, the Turkish market is at an inflection point with a growing e-commerce penetration expected to exceed 20% within total retail by 2025. That said, roughly 90% of total retail is still offline. Hence, our largest opportunity is offline retail. And we would like to capitalize on this opportunity and create long-term value by expanding our customer base, order frequency, merchant base, our selection and maintaining our price competitiveness, and scaling our new strategic asset. And of course, our solid operational execution, capital efficiency, robust logistics network, deep technology capabilities, household brand name, hybrid business model and integrated ecosystem well position us for success. Third question, if I’m not mistaken is about HepsiPay. HepsiPay is correct?

Yes. Murat Emirdağ: So, HepsiPay is designed to be a companion wallet to spend, save and mobilize money in a flexible way across online and offline. Having acquired its license in 2016, HepsiPay marked this important milestone by launching this Cuzdanim, HepsiPay Wallet, as an embedded digital wallet on our platform on the 10th of June. As we mentioned, the daily penetration amongst eligible audience has been faster than our expectation, but yet, it’s too early to disclose numbers. But HepsiPay Wallet enables into returns, cancellations and cashback. Along with HepsiPay Wallet, HepsiPay also introduced papel program, a cashback points program that allows customers to earn, redeem points during purchases with the wallet on our platform. HepsiPay will enable peer-to-peer money transfers and will constantly explore new use case scenarios across online and offline. Actually in line with our Super App value proposition, we’ll continue to invest and scale our strategic assets to the benefit of our customers, including HepsiPay, which is well-positioned for strong long-term growth.

The next question is from the line of Tuncer, Aslı with Goldman Sachs. Please go ahead. Aslı Tuncer: Hi. Thank you very much for the presentation. And congratulations on the first set of results, post your IPO. So, I’ve got a couple of questions. First, on the active user base, are you able to share some sort of granularity around the actual growth rates? It will be important that just anything sort of anecdotal would be helpful as well. I know that there were a couple of questions on the take rate, but I couldn’t hear it clearly. My line was breaking up. So, the implied take rate for the second quarter is quite low. Is this a pure mix effect or is there any change in the take rates across categories, potentially due to competitive pressures? And is that something that will imply lower take rate going forward for the rest of the year and potentially beyond that? And my next question is, what are your expectations on profitability for the rest of the year? Where do you see most of the pressure coming from? And related to that, how is the profitability profile across your new business lines, especially HepsiExpress? Korhan Öz: Thank you, Aslı. For active user base, unfortunately, we do not share our active user base on a quarterly basis, but we will share the increase by the end of the year, as a year-end figure. However, our active user base and frequency keeps on increasing, I can give you this guidance. On the margin investment and the take rate effect, I can say, our gross contribution margin declined by 2.4 percentage points, reaching 8.3% compared to the second quarter of last year. And this is mainly due to dynamics in revenue growth. There is a…

The next question is from the line of Kılıçkıran Hanzade with JP Morgan. Please go ahead. HanzadeKılıçkıran: Thank you for the presentation. Majority of my questions are asked, but I have some more. The first one is about competition. How are you planning to respond to accelerated last-mile and fulfillment investments by Trendyol? I think, they are now much bigger than you on the fulfillment side. And how many merchants have been already onboard for fulfillment services? Because you had given some sort of statistics during the IPO, and I just wanted the developed ones here. And what is the share of total orders delivered by HepsiJet, what is the progress here? And you also mentioned about some share incentives to management, I think, which is not included in your payroll cost, in the second quarter. Can you please give some details about this? And finally about your working capital, there was a big relief in the second quarter. So, how should we think about this developing in the second half from a cash flow perspective? Thank you. Murat Emirdağ: Yes. Let me take the first question. Maybe let me just first remind you, our well-defined use-of-proceeds plan. As you remember, we have a very strong, well-defined use-of-proceeds, which includes exploration of our growth flywheel, scaling up our strategic assets, investing and scaling our operations, logistics and technology, infrastructure, and of course, driving project talent. Within that context, as we discussed briefly so far, we also definitely invested and scaled our capabilities across design. We operate a large, fast and scalable in-house logistics network with last-mile delivery, fulfillment and operations capabilities powered by our proprietary technology. I mean, as you remember, we mentioned as a result of its expansion, now HepsiJet achieved presence in every city in Turkey, reaching 137…

Ladies and gentlemen, there are no further questions at this time. I will now turn the conference over to management for any closing comments. Thank you. Murat Emirdağ: Thanks, operator. I would like to recap what you have heard from us today. Our vision is to lead digitalization of commerce. Today, we are one-stop-shop for our customers’ everyday needs from products and services to groceries and payment solutions. Our solid operational execution, capital efficiency, robust logistics network, deep technology capabilities, household brand name, hybrid business models and integrated ecosystem helped position us as a homegrown company to emerge as the first-ever NASDAQ listed Turkish company. We operate in an attractive market that has a large, young urbanized and tech savvy population. Again, let us remind you, the Turkish market is at an inflection point with the global e-commerce penetration expected to exceed 20% within total retail by 2025. That said, roughly 90% of total retail is still offline, offering a large opportunity for growth. And this is the right time for us to capitalize on these opportunities. Our key principle remains to prioritize growth, to create long-term value by attracting more customers, increasing our order frequency, adding more merchants, expanding our selection of catalogue, maintaining our price competitiveness and scaling our new strategic assets. With the use of funds raised in our recent IPO and our strong balance sheet, we will continue to invest in our region. Thank you for everyone for your time today. And we look forward to speaking with you again next quarter.

Ladies and gentlemen, the conference is now concluded and you may disconnect your telephone. Thank you for calling and have a pleasant evening.