Hepsiburada - Earthquake update - uniquely positioned

Hepsiburada joins relief efforts following the earthquake

Hepsiburada in action post earthquake. has been one of the most active corporations in Turkey facilitating help across the quake hit region. Given its business model and its unique reach, Hepsiburada is ideally positioned to connect various government institutions, companies and NGOs, as quickly as possible, with the region. Below is a list of some of the actions and activities -initiated by the company within 48 hours following the quakes- worth highlighting.

1. Hepsiburada - The management administered a total of TL38 million in orders within the first 24 hours working directly with the Earthquake Relief Campaign of the Ministry of Commerce,

2. HepsiPay - Working with various NGOs and the Turkish Ministry of Commerce, Hepsiburada has issued a digital payment card to help facilitate any funding activity for earthquake victims and survivors. The card is in wide use across the country. Some TL59 million in aid money is collected and transferred in less than 24 hours.

3. HepsiLogistics/HepsiJet - In the first 48 hours of the earthquake, Hepsiburada delivered electrical heaters, thermal underwear, diapers, sanitary pads, various clothing and blankets to Hatay and Gaziantep.

4. HepsiLogistics - Hepsiburada has also provided and continues to provide transportation/logistics support and delivery for all products and services related to earthquake relief efforts purchased on its platform. The company allocated five large trailer trucks to deliver the goods exclusively to the quake hit region.

5. HepsiLogistics - Additional five trucks are dispatched to help with the logistics needs of various municipalities, NGOs and public institutions in the region.

6. Hepsiburada earthquake fund - has commissioned a fund totaling TL10 million to provide financial support to the quake hit cities in the region.

These are some of the early actions introduced by the company. We congratulate the management for being proactive here. Some of these initiations could also be business accretive looking forward; but it is premature to talk about these for now. We will keep you posted if and when we hear more.

Management statement about the quakes’ impact on Hepsiburada itself

1. All employees are accounted for. None of Hepsiburada employees including the outsourced staff have lost their lives as a result of the earthquake. The management is prepared to provide any relevant support to its employees if and when necessary.

2. No damage to the HQ and fulfillment center in and around Istanbul. Hepsiburada’s physical assets, buildings used as its Istanbul headquarters and offices, and its Gebze fulfillment center, where most employees are based, are unaffected as they are outside the quake zone.

3. Minor damage reported at a few transfer centers. Some nine cross-dock points (parcel transfer centers) of HepsiJet, out of a network of 190 in total, have been directly hit and hence will have to be relocated. The management estimates the cost of this relocation at a maximum $200K in 2023, or circa 0.07% of our full year 2022 opex estimate.

4. Active merchants in the region - payments. The number of active merchants on the Marketplace that have their registered addresses in the affected ten cities is circa 6,500 out of over 94,000 in the network. Hepsiburada has advanced its payments that were due --for transactions that have already been invoiced, by one week.

5. Sales with some outlook. Below is a direct quote from today's release concerning sales during the week of earthquakes and the aftermath.

"As expected during natural disasters, Hepsiburada has observed a temporary decline in overall customer demand on its platform, and the number of orders received during the week starting February 6th, compared to the preceding week, as well as compared to the same week of the past year. Hepsiburada believes that this decline may have been caused by the loss of traffic and demand from those ten cities affected by the earthquake and its decision to put major marketing campaigns, events and media advertising on hold out of respect for the nationwide mourning. Hepsiburada anticipates that a recovery in customer demand may occur gradually once the situation stabilizes."