The NOAH Conference 2012 was held on November 6th in London. İlker Baydar, the General Manager of Hepsiburada.com, Turkey's largest e-commerce company, presented at the conference. Hepsiburada.com has over 35% compound annual growth rate over the last 5 years, $300 million in annual revenues, and 3 million active customers as of October 2012. The presentation highlighted Hepsiburada.com's position as the dominant online retailer in Turkey and opportunities for continued growth.

1. Text
The NOAH Conference 2012
November 6, London
İlker Baydar
General Manager
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2. POWER of hepsiburada.com
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3. TURKEY’S LARGEST E-COMMERCE COMPANY
Over %35 CAGR over the last 5 years
Profitable in the net income level over the past 5 years
USD 300 mm in revenues with ca. 300 employees
Multi-category e-tailer with 32 categories and 350K SKUs
Most visited online retailer, 18 mm visits per month
3 mm active customers as of October 2012
600.000 products sold monthly
%30 of iPhone users downloaded HB application, ranked number 1 at Apple Store
%10 of our traffic comes from mobile
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4. EVOLUTION of hepsiburada.com
Our business has grown and developed over the last twelve years
Website relaunched as hepsiburada.com
Separation of head-
office and warehouse/
logistics to different
1st member of infoshop.com.tr 1st newspaper 2nd 1st TV
3rd warehouse 4th warehouse 5th warehouse locations for the first time in
1st desktop computer advertising warehouse advertising Company’s history
1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012
Installment Implementation 1st supplier integration via XML DataWareHouse iPhone
payments on of ERP system gateway management application
credit cards (SAP) Recommendation engine implemented system launched
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5. OUR DYNAMIC MARKET and MARKET OPPURTUNITY
• Turkey is a large and growing economy:
• GDP expected growth for 2012-2015 is 5-6% p.a. according to World Bank
• Over 75 mm population
• Retail market in excess of USD 450 bn value
Young Population Consumer spending dynamics
Median age %pop between 15 and 45 years old Total consumer spending CAGR 12-15E
28 50% %11,0
29 48% %17,5
36 47% %11,4
37 40% %8,4
39 44% %7,9
39 43% %4,5
40 38% %4,4
40 40% %1,9
45 36% %1,7
TurkStat, IDC New Media Market Model 2H2011, EIU
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6. OUR TARGET AUDIENCE
• Highest in Europe at monthly hours spent online
• % 47 of connected internet users are below 25 years old
Growing Internet Users Growing Internet Buyers
Internet users growth Internet users Internet penetration Online buyers growth Online buyers
(2011 - 2015E) (mm, 2015E) (%pop., 2015) (2011 - 2015E) (mm, 2015E)
8,8% 46 57% 18,6% 14
6,2% 109 51% 16,2% 195
6,0% 85 62% 15,5% 37
3,8% 535 40% 11,9% 49
3,4% 29 75% 9,1% 16
2,9% 59 89% 5,1% 212
2,3% 275 85% 3,5% 45
1,8% 58 91% 3,3% 40
1,0% 71 88% 1,2% 51
IDC WW New Media Market Model 2H2011
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7. OUR STRENGTH
Uniquely positioned to become the next-generation retail superpower
• 87% of visits from unpaid traffic
Market
Presence
• 50% of the traffic from organic search results
• 99% brand recognition within Internet commerce focus groups
Supplier
• Work with 2,400 active suppliers
Relations
• Integrate with all critical suppliers for inventory availability via XML gateways – about 60% of the revenue
• Have the power to put non-branded suppliers into leading local brands in 2-3 years
• High customer loyalty
• Over %70 of acquired customers in 2006 still shops from Hepsiburada
Customer • More than half of customers are multi category shoppers
Engagement
• Community built around customer reviews – more than 1 million as well as customer service since inception with
unconditional free return upon delivery
• Mature, evolving, feature rich technology platform
Infrastructure • %70 of orders are shipped within 24 hours
• Fully integrated with shipping companies
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8. OUR AMBITIONS
Uniquely positioned to become the next-generation retail superpower
• Hepsiburada is the most penetrated retailer in Turkey. 65% of shipment is outside of 3 big cities
• Turkish retail market is ca. USD 450 mm and growing, but still fragmented – Top 10 retailers control 27% in the US
Scalable
and 21% in the EU and only 6% in Turkey
Retailer
• Represents a potential grab of $60 - 80 bn of retail trade to scale players
• Our share in certain categories makes us not only the largest online player but a significant player in offline
Leader in
• Dominant market share of online commerce in all major categories
Online Retail
• Increasing share in categories where we expand by strategic sourcing – for examples trainers and strollers
• Experiment in competitive categories like fashion and shoes
• Continue to serve customer needs for selection, service and value
Customer • Ability to build long term customer relationships
Engagement
• Explore vertical opportunities when attractive and applicable
Financial • Further develop business model for growth at profitable levels
Results • Make smart investments to optimize margins and use marketing investment with full effect
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9. TURKEY’S LARGEST SHOPPING MALL
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10. Thank you
İlker Baydar
General Manager
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11. BACK UP
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12. Hepsiburada.com UNDISPUTED LEADER
IN TURKISH E-COMMERCE
• Loyal customer data base
• Difficult to replicate business model
• Powerful profitable platform
• Widest selection and supplier network
• Most penetrated retailer of country
• Fully integrated to shipping companies
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13. POWER of hepsiburada.com
• Power of hepsiburada.com platform allows in new product categories to enter
Exp: Sport shoes, diapers, mattresses, wheels
• Power to launch new brands. In many categories hepsiburada.com pushes non-branded
products
Exp: Stroller (7 % market share), treadmill (11 % market share)
• Already dominant player in many segments
Exp: Smartphones, treadmill, tablets, cosmetics, pet food
• No barrier for hepsiburada.com to introduce new product categories
• Strong supplier integration. 2400 active suppliers
• 350K SKU’s
• 600K products delivery per month
• Remarkable mobile traffic in Turkish internet market
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14. The RISE of MOBILE
10% of total traffic and 2% of revenue is generated from mobile
Visits Revenue Avarage Value
400% 322% 20%
2011 2012 2011 2012 2011 2012
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