Q1 2026 Kaspi.kz Earnings Call

May 11, 2026

Speaker #1: The Ferguson Kaspi, as usual, with me on the call. I've got our co-founder and CEO, Mikhail Antontsev. The rest of the management team, team members of the management team, Tengiz Masidzi, and you're indeed Denco, Deputy CEO.

David Ferguson: David Ferguson from Kaspi.kz. As usual, with me on the call, I've got our Co-Founder and CEO, Mikheil Lomtadze. The rest of the management team, key members of the management team, Tengiz Mosidze and Yuri Didenko, our deputy C-E-Os of the company. We're gonna do things a little bit differently to how we've done them in the past. For today and going forward, we're going to make the Q1 and the Q3 calls financial updates, and where relevant, updates to the guidance. There's no change to today. We'll keep the full year results and the interim results for more detailed calls when Mikheil will talk about the strategy, products, other initiatives going on in the company. I think this should be a more efficient way of doing things.

Speaker #1: CEOs of the company, we're going to do things a little bit differently to how we've done them in the past. So, for today and going forward...

Speaker #1: We're going to make the first quarter and the third quarter calls financial updates and where relevant, updates to the guidance. There's no change to today.

David Ferguson: There's no change to today. We'll keep the full year results and the interim results for more detailed calls when Mikheil will talk about the strategy, products, other initiatives going on in the company. I think this should be a more efficient way of doing things. Particularly, I know a lot of you have multiple companies reporting at the same time, and it should make for more interesting full year and interim results calls. On that note, I will hand over to Mikheil. He'll make a couple of introductory comments, and then I'll take you through the rest of the presentation. Mikheil, over to you.

Speaker #1: And then we'll keep the full-year results and the interim results for more detailed calls, when Mikhail will talk about the strategy, products, and other initiatives going on in the company.

Speaker #1: I think this should be a more efficient way of doing things, particularly as a lot of you have multiple companies reporting at the same time, and it should make for more interesting full-year and interim results calls.

David Ferguson: Particularly, I know a lot of you have multiple companies reporting at the same time, and it should make for more interesting full year and interim results calls. On that note, I will hand over to Mikheil. He'll make a couple of introductory comments, and then I'll take you through the rest of the presentation. Mikheil, over to you.

Speaker #1: So, on that note, I will hand over to Mikhail. He'll make a couple of introductory comments, and then I'll take you through the rest of the presentation.

Speaker #1: Mikhail, over to you.

Speaker #2: Thank you, David. Hello, everyone. So, our—you know, we have started the year and the first quarter with good growth and strong growth in e-commerce.

Mikheil Lomtadze: Thank you, David. Hello, everyone. You know, we have started the year in Q1 with good growth and strong growth in e-commerce, which was driven by the also higher purchasing frequency and some of the services, value-added services showing additional monetization faster than the GMV growth itself. Our e-commerce did grow 41% year-over-year on a constant currency and pro forma basis. Importantly, the transactions grew 43% year-over-year. The frequency of the quarterly purchases now reached 15, which is also quite a substantial growth of 44% year-over-year. We are remaining a very profitable company.

Speaker #2: which was driven by the also higher purchasing frequency and, some of the services, value-added services, showing, additional monetization faster than, than the GAV growth itself.

Speaker #2: So our e-commerce, we grew 41% year over year on a constant currency and performance basis. And importantly, the transactions grew 43% year over year.

Speaker #2: And then, frequency of the of the quarterly purchase now reached 15, which is which is also quite a substantial growth of 44%, year over year.

Speaker #2: we are remaining a, a, a very profitable, company. and, you know, we're, we're happy that, the board recommended, a dividend, of, 850 Tenge per EPS, which represents about 64% payout ratio.

Mikheil Lomtadze: You know, we're happy that the board recommended a dividend of KZT 850 per ADS, which represents about 64% payout ratio. I mean, the general sort of message for everyone is pretty simple, that we are creating a much larger, even a bigger, more diversified business. Now we're happy with both building on our strength of the super app, leading positions in our home market, Kazakhstan, but also, you know, creating additional growth in Türkiye. The one thing which I wanted to mention briefly, that e-commerce for us is important. As I mentioned before, you know, we are the company which is focused on the front end of the consumer and merchant relationship.

Mikheil Lomtadze: You know, we're happy that the board recommended a dividend of 850 per ADS, which represents about 64% payout ratio. I mean, the general sort of message for everyone is pretty simple that we are creating a much larger, even a bigger more diversified business. Now we're happy with both building on our strength of the super app leading positions in our home market Kazakhstan, but also, you know, creating additional growth in Türkiye. The one thing which I wanted to mention briefly, that e-commerce for us is important. As I mentioned before, you know, we are the company which is focused on the front end of the consumer and merchant relationship.

Speaker #2: I mean, the, the general, sort of, message, for, for everyone is, is pretty simple that we are, creating, a much larger and, you know, bigger, more diversified, more diversified business.

Speaker #2: And, and now we're, we're happy with the both building on our strength of the super app and leading positions in our home market, Kazakhstan, but also, you know, creating additional growth, in, in Turkey.

Speaker #2: the one thing which I wanted to mention briefly that e-commerce for us is, is important, as I mentioned before. You know, we are the company which is focused on the front end of the consumer and merchant relationship.

Speaker #2: And when I say front end of consumer and merchant relationship, I mean to the point where the purchase and sale decision is happening. And the purchase and sale decision is happening on e-commerce, where consumers are searching, reviewing, and buying, goods on the one end, in the future with, with the help of the AI agents and, on the other hand, you have merchants that are also creating those listings and, and getting additional sales.

Mikheil Lomtadze: When I say front end of consumer and merchant relationship, I mean to the point where the purchase and sale decision is happening. The purchase and sale decision is happening on e-commerce, where consumers are searching, reviewing, and buying goods on the one hand, in the future with the help of the AI agents. You know, on the other hand, you have merchants that are also creating those listings and getting additional sales. When you combine this together, on top of it you do have additional value-added services. The simplest today would be advertising and delivery value-added services, which have grown actually quite substantially, about 73% year over year. We remain very optimistic. We believe in the future of our company.

Mikheil Lomtadze: When I say front end of consumer and merchant relationship, I mean to the point where the purchase and sale decision is happening. The purchase and sale decision is happening on e-commerce, where consumers are searching, reviewing, and buying goods on the one hand in the future with the help of the AI agents. You know, on the other hand, you have merchants that are also creating those listings and getting additional sales. When you combine this together, on top of it you do have additional value-added services. The simplest today would be advertising and delivery value-added services, which have grown actually quite substantially, about 73% year over year.

Speaker #2: And when combined, this is either on top of it, you do have additional value-added services. The simplest today would be advertising and delivery, delivery value-added services, which have grown actually quite substantially, about 73% year over year. So we remain very optimistic.

Speaker #2: We believe in the future of our company, as you've probably been, already, learned that I made investment myself, alongside with tenant and other long-term shareholders, and I remain fully aligned and true believer in the company and, you know, we are really committed about some of the services we're working on.

Mikheil Lomtadze: We remain very optimistic. We believe in the future of our company. As you've probably been already learned that I have made a investment myself, alongside with Tencent and other long-term shareholders. I remain fully aligned and true believer in the company and, you know, we are really excited about some of the services we're working on. You know, hopefully during the year, as David mentioned, we'll be providing more detailed overview of some of the products we have been already launching. Then we'll be sharing with you how excited we are about the range of innovations which companies is launching and working on. That's, you know, pretty much everything from me at this stage. Back to you, David.

Mikheil Lomtadze: As you've probably been already learned that I have made a investment myself, alongside with Tencent and other long-term shareholders. I remain fully aligned and true believer in the company and, you know, we are really excited about some of the services we're working on. You know, hopefully during the year, as David mentioned, we'll be providing more detailed overview of some of the products we have been already launching. Then we'll be sharing with you how excited we are about the range of innovations which companies is launching and working on. That's, you know, pretty much everything from me at this stage. Back to you, David.

Speaker #2: So, you know, hopefully during the year, as David mentioned, we'll be providing a more detailed overview of some of the products we have already launching, and we'll be sharing with you how excited we are about the range of innovations which the company is launching and working on.

Speaker #2: so that's, you know, pretty much everything from me at this stage. Back to you, David.

Speaker #1: Sure. So thanks a lot, Mikhail. I'll run through the financials of the platform at the group level, and then we'll guide on the guidance.

Speaker #1: So just quickly to, to summarize, consolidated revenue of 31% year on year, and adjusted EBITDA of 9% year on year. I think the simple message, the first quarter on track with where we expected, to be.

David Ferguson: Sure. Thanks a lot, Mikheil. I'll run through the financials, both at the platform, at the group level, and then up guide on the guidance. Just quickly to sort of summarize, consolidated revenue up 31% year on year and adjusted EBITDA up 9% year on year. I think the simple message, the Q1 on track with where we expected to be. On the dividend, as Mikheil said, KZT 850 a share. This is the same amount as when we brought back the dividend for the Q4. We said at the time, extrapolate the amount throughout the 4 quarters of this year. It's consistent with what we've said and what you can assume for forecasting purposes. At a divisional level, marketplace GMV growth of 19%. This is constant currency pro forma.

Speaker #1: On the dividend, as Mikhail said, 850 Tenge per share. This is the same amount as when we brought back the dividend for the fourth quarter, and we said at the time, extrapolate the amount throughout the four quarters of this year.

Speaker #1: So, consistent with what we've said, and what you can assume for forecasting purposes. And then, at the divisional level, marketplace GMV growth of 19%. This is constant currency, pro forma.

Speaker #1: So just to remind people, we acquired that Tirada at the end of January. So on a reported basis, it's in the numbers for three months this quarter versus approximately two months in the first quarter of last year.

Speaker #1: Pro forma constant currency gives you a true indication—the real growth in the business. So, marketplace GMV of 19% on the same basis, e-commerce GMV of 41% year on year.

David Ferguson: Just to remind people, we acquired Hepsiburada at the end of January, on a reported basis, it's in the numbers for 3 months Q1 2024 versus approximately 2 months in Q1 2023. Pro forma constant currency gives you the true indication, the real growth in the business. Marketplace GMV up 19% on the same basis, e-commerce GMV up 41% year-on-year. That's sort of the true rate of growth in e-commerce. TPV up 14%, not affected to any material extent by Hepsiburada. TFE down 2% with average loan portfolio up 23%, and I'll talk a little bit more about that later on. Moving on to the segments.

Speaker #1: So that's sort of the true rate of growth in e-commerce. TPV of 14%, not affected. 20% material, extended by taxi, Tirada. TFV down 2%, but average loan portfolio of 23%.

Speaker #1: And I'll talk a little bit more about that. later. So moving on to the segments. As we talked about both at the full year results and for that matter, over the last 12 months, e-commerce is one of our most important areas of focus.

Speaker #1: And we'll be one of the main drivers of growth over the next couple of years. E-commerce GMV of 41% year on year. So again, constant currency, pro forma.

David Ferguson: As we talked about both at the full year results, and for that matter, over the last 12 months, e-commerce is one of our most important areas of focus and will be one of the main drivers of growth over the next couple of years. E-commerce GMV up 41% year-on-year. Again, constant currency pro forma, like for like, driven by purchases up 43% year-on-year. Here again, we've spoken about the importance of driving order growth both in Kazakhstan and in Turkey. You see the result of this or another way of looking at this, purchases for consumer on e-commerce up from 10.4 last year to 15 this year. That's really an indication that the existing consumer base is becoming more engaged.

Speaker #1: Like a like. Driven by purchases up 43% year on year. And here, again, we've spoken about the importance of driving order growth, both in Kazakhstan and in Turkey.

Speaker #1: You see the results of this or the way of looking at this. Purchases per consumer on e-commerce from 10.4 last year to 15 this year.

Speaker #1: That's really an indication that the existing compute consumer base is becoming more engaged as we scale and engage the consumer base to drive more opportunities and monetization around advertising, delivery, fintech, and so on.

Speaker #1: And it's the it's the, the, the foundation of sustainable healthy long-term profitability in e-commerce. So that metric we've been very much in the right direction.

Speaker #1: And contributing to the take rate increasing by 90 basis points year on year to 15.8%. Today, around half of the GMV is coming from Kazakhstan and Turkey.

David Ferguson: As we scale an engaged consumer base, it drives more opportunities for monetization around advertising, delivery, fintech and so on. It's the foundation of sustainable, healthy, long-term profitability in e-commerce. That metric moving very much in the right direction and contributing to the take rate increasing up 90 basis points year on year to 15.8%. Today, around half of the GMV is coming from Kazakhstan and Turkey, so the businesses are broadly equal in size and importance with the bulk of the marketplace business being 3P. The 1P component is coming primarily from Hepsi. Around a third of their GMV is 1P, with e-grocery in Kazakhstan also contributing. Again, to reinforce that point, you now see e-commerce revenue growing faster than GMV because of take rate expansion or because of growth in value-added services.

Speaker #1: So the businesses are broadly equal in size and importance. with the bulk of the marketplace business being 3P, the 1P component is coming primarily from Hepsi, around a third of their GMV is 1P.

Speaker #1: With e-grocery in Kazakhstan also contributing. Again, to reinforce that point, you now see e-commerce revenue growing faster than GMV because of take rate expansion or because of growth in value-added services.

Speaker #1: In this case, this is advertising and delivery revenue of 73% year-on-year, versus e-commerce revenue growth of 58% year-on-year. So again, with a more engaged user base, more opportunities to drive monetization, you see this coming through here.

David Ferguson: The 1P component is coming primarily from Hepsi. Around a third of their GMV is 1P, with e-grocery in Kazakhstan also contributing. Again, to reinforce that point, you now see e-commerce revenue growing faster than GMV because of take rate expansion or because of growth in value-added services. In this case, this is advertising and delivery revenue up 73% year on year versus e-commerce revenue growth up 58% year on year. Again, with a more engaged user base, more opportunities to drive monetization, and you see this coming through here.

Speaker #1: Revenue growth is, just to be clear, on the reported basis. And then if we look at marketplace growth, so again, just to keep in mind, e-commerce is around 60% of market GMV.

David Ferguson: In this case, this is advertising and delivery revenue up 73% year on year versus e-commerce revenue growth up 58% year on year. Again, with a more engaged user base, more opportunities to drive monetization, and you see this coming through here. The revenue growth is, just to be clear, on the reported basis. If we look at marketplace growth, again, just to keep in mind, e-commerce is around 60% of market GMV, marketplace GMV. The other 40% comes primarily from m-commerce and to a lesser extent, travel in Kazakhstan. GMV growing at a slower rate of 19% year on year, but with revenue growth up 49% and EBITDA up 12%. What we are seeing really is that that transition from offline to online retail or that transition from m-commerce to e-commerce is gathering momentum.

Speaker #1: Marketplace GMV, the other 40% comes primarily from M-commerce and to a lesser extent travel in Kazakhstan. GMV growing at a slower rate of 19% year on year.

Speaker #1: With revenue growth of 49% and EBITDA of 12%. And what we are seeing really is that that transition from offline to online retail or that transition from M-commerce to e-commerce is, is gathering momentum.

David Ferguson: The revenue growth is, just to be clear, on the reported basis. If we look at marketplace growth, again, just to keep in mind, e-commerce is around 60% of market GMV, marketplace GMV. The other 40% comes primarily from m-commerce and to a lesser extent, travel in Kazakhstan. GMV growing at a slower rate of 19% year on year, but with revenue growth up 49% and EBITDA up 12%. What we are seeing really is that that transition from offline to online retail or that transition from m-commerce to e-commerce is gathering momentum.

Speaker #1: Hence, the stronger growth from e-commerce versus overall marketplace GMV growth. Revenue of 49% marketplace and EBITDA of 12%. On the EBITDA, that primarily reflects the inclusion of HepsiTirada for the three-month period versus two months in 2025.

Speaker #1: As you know, as well as we said previously, the aim with Hepsi, Tirada is to keep it around EBITDA growth even this year. So you've got a full three-month consolidation of the business that's around EBITDA growth even, slightly positive.

David Ferguson: Hence the stronger growth from e-commerce versus overall Marketplace GMV growth revenue up 49% for Marketplace and EBITDA up 12%. On the EBITDA, that primarily reflects the inclusion of Hepsiburada for the 3-month period versus 2 months in 2025. As you know, as we've said previously, the aim with Hepsiburada is to keep it around EBITDA breakeven this year. You've got a full 3-month consolidation of a business that's around EBITDA breakeven, slightly positive, hence the slower EBITDA growth versus the revenue growth. Moving on to Payments. Payments, sorry, 14% TPV growth versus the guidance of around 15%. Revenue growing at a slower rate, up 7% year on year as a result of take rate compression.

Speaker #1: Hence, the slower EBITDA growth versus the revenue growth. Moving on to payments. Our payments 15% TPV growth versus, sorry, 14% TPV growth versus the guidance of around 15%.

Speaker #1: Revenue is growing at a slower rate of 7% year-on-year as a result of take rate compression. That is consistent with long-run trends driven by a change in product mix in favor of Hepsi, Tirada, and particularly Hepsi B2B payments.

Speaker #1: And overall flat EBITDA growth. Keep in mind that EBITDA excludes interest revenue. Interest revenue is around a quarter of payments revenue. And the EBITDA metric doesn't, doesn't capture that.

David Ferguson: Moving on to Payments. Payments, sorry, 14% TPV growth versus the guidance of around 15%. Revenue growing at a slower rate, up 7% year on year as a result of take rate compression. That is consistent with long run trends driven by change in product mix in favor of Kaspi QR and particularly Kaspi B2B payments and overall flat EBITDA growth. Keep in mind that EBITDA excludes interest revenue. Interest revenue is around a quarter of payments revenue and the EBITDA metric doesn't capture that. It's around a quarter of revenue, and it grew about 26% year on year.

Speaker #1: So it's around a quarter of revenue, and it grew about 26% year-on-year. So overall, payments is a large, more mature business, but still highly profitable and highly cash-generative, as well as strategically being the driver of engagement across our businesses in Kazakhstan.

David Ferguson: That is consistent with long run trends driven by change in product mix in favor of Kaspi QR and particularly Kaspi B2B payments and overall flat EBITDA growth. Keep in mind that EBITDA excludes interest revenue. Interest revenue is around a quarter of payments revenue and the EBITDA metric doesn't capture that. It's around a quarter of revenue, and it grew about 26% year on year. Overall, payments is large, more mature business, but still highly profitable and highly cash generative, as well as strategically being the driver of engagement across our other businesses in Kazakhstan. Moving on to fintech, and I'll spend a bit more time on this slide. First of all, average net loan portfolio growth of 23% versus TFE decline of 2% and versus the guidance for the year of 5% TFE growth.

Speaker #1: And then moving on to, fintech. I'll spend a bit more time on this slide. So first of all, average net loan portfolio growth of 23% versus TFV decline of 2% versus the guidance of the year of 5%, TFV growth.

Speaker #1: We deliberately choosing to prioritize longer-duration loans that generate revenue, that generate more revenue. So TFV is an indication of origination but TFV in itself doesn't drive revenue or financials.

David Ferguson: Overall, payments is large, more mature business, but still highly profitable and highly cash generative, as well as strategically being the driver of engagement across our other businesses in Kazakhstan. Moving on to fintech, and I'll spend a bit more time on this slide. First of all, average net loan portfolio growth of 23% versus TFE decline of 2% and versus the guidance for the year of 5% TFE growth. We're deliberately choosing to prioritize longer duration loans that generate revenue, that generate more revenue. TFE is an indication of origination, but TFE in itself doesn't drive revenue or financials. It's average loan portfolio that drives revenue, that drives bottom line of the business.

Speaker #1: It's average loan portfolio that drives revenue, that drives bottom line of the business. So we're favouring longer-duration loans, which generate more revenue. You can see the duration of portfolio has increased from 7.9 months to 9.3 months.

Speaker #1: Effectively, what's happening is BMPL, which is a small-ticket, short-duration product, is becoming smaller in the portfolio mix. Merchant financing and the general purpose loan, which are longer-duration loans, are becoming larger in the mix.

David Ferguson: We're deliberately choosing to prioritize longer duration loans that generate revenue, that generate more revenue. TFE is an indication of origination, but TFE in itself doesn't drive revenue or financials. It's average loan portfolio that drives revenue, that drives bottom line of the business. We're favoring longer duration loans which generate more revenue. You can see the duration of the portfolio is increased from 7.9 months to 9.3 months. Effectively, what's happening is BNPL, small ticket short duration, is becoming smaller in the portfolio mix. Merchant financing and the general purpose loan, which are the longer duration loans, are becoming larger in the mix. While this change is going on, you have this sort of divergence between loan portfolio growth or widening between loan portfolio growth and TFE growth.

Speaker #1: And while this change is going on, you have this sort of divergence between loan portfolio growth—or widening between loan portfolio growth and TFV growth.

Speaker #1: So the combination of 23% loan portfolio growth and a stable pricing fintech yield of 6% year on year translates into 25% revenue growth and 12% adjusted EBITDA growth year on year.

David Ferguson: We're favoring longer duration loans which generate more revenue. You can see the duration of the portfolio is increased from 7.9 months to 9.3 months. Effectively, what's happening is BNPL, small ticket short duration, is becoming smaller in the portfolio mix. Merchant financing and the general purpose loan, which are the longer duration loans, are becoming larger in the mix. While this change is going on, you have this sort of divergence between loan portfolio growth or widening between loan portfolio growth and TFE growth.

Speaker #1: And as we've talked about for now several years, the EBITDA growth is being impacted by a high funding cost, increased around 220 bps year on year on the back of the interest rate increases in Kazakhstan.

Speaker #1: Last year, it continues to rush the growth. Rates start to move down and hopefully now we are at the point where rates have peaked.

Speaker #1: That will be very helpful to, to, to growth next year. Profitability growth next year. I'll also just talk a little bit on the risk metrics because I've had a lot of questions on this over the last couple of months.

David Ferguson: The combination of 23% loan portfolio growth with stable pricing, fintech yields of 6% year-on-year translates into 25% revenue growth and 12% adjusted EBITDA growth year-on-year. As we've talked about for now several years, the EBITDA growth is being impacted by higher funding costs, increased around 220 bps year-on-year on the back of the interest rate increases in Kazakhstan last year, and continues to pressure growth. If rates start to move down, and hopefully now we are at the point where rates have peaked, that will be very helpful to growth next year, profitability growth next year. I'll also just talk a little bit on the risk metrics, because I've had a lot of questions on this over the last couple of months.

Speaker #1: If we want to look at—sort of understand—risk in the portfolio and the dynamic, how it's changing, first and second payment defaults, number one, delinquency rates are some of the best sort of real-time metrics that we can look at.

Speaker #1: So first and second payment defaults, people who've taken a loan immediately miss to, a payment. You can see the number one, the levels of default are low.

Speaker #1: 0.9 and 0.4%. That's extremely low. And number two, if you look at the trend going back to the beginning of 2023, it's broadly stable.

Speaker #1: There could be some variation at different periods, particularly due to seasonality. But overall, it's a pretty flat chart, pretty flat line. Similarly, on delinquency rates, looking across the portfolio, people who've just missed a payment.

David Ferguson: I'll also just talk a little bit on the risk metrics, because I've had a lot of questions on this over the last couple of months. If you wanna look at, sort of understand our risk in the portfolio and the dynamic, how it's changing, first and second payment defaults, number 1, and delinquency rates are some of the best sort of real-time metrics that we can look at. First and second payment default, people who've taken a loan and immediately missed a payment. You can see that number 1, the levels of defaults are low, 0.9% and 0.4%.

David Ferguson: If you wanna look at, sort of understand our risk in the portfolio and the dynamic, how it's changing, first and second payment defaults, number 1, and delinquency rates are some of the best sort of real-time metrics that we can look at. First and second payment default, people who've taken a loan and immediately missed a payment. You can see that number 1, the levels of defaults are low, 0.9% and 0.4%. That's extremely low. Number 2, if you look at the trend going back to the beginning of 2023, it's broadly stable. There can be some variation at different periods, particularly due to seasonality, but overall, it's a pretty flat chart, pretty flat line. Similarly, on delinquency rates, looking across the portfolio, people who've just missed a payment.

Speaker #1: A good indication, a good lead indicator for credit quality. Again, exactly the same sort of conclusion: 2.2%, a very low delinquency rate.

Speaker #1: Again, the trend broadly stable over the last couple of years. So what a lot of people are, are, are focused on appears, and then MPL metrics.

Speaker #1: It's also important when you look at appears to actually look at their, their sort of real-time risk metrics. To get a true understanding of the health of the portfolio.

David Ferguson: That's extremely low. Number 2, if you look at the trend going back to the beginning of 2023, it's broadly stable. There can be some variation at different periods, particularly due to seasonality, but overall, it's a pretty flat chart, pretty flat line. Similarly, on delinquency rates, looking across the portfolio, people who've just missed a payment. A good indication, a good lead indicator for, for credit quality. Again, exactly the same sort of conclusion, 2.2%, a very low delinquency rate. Again, the trend broadly stable over the last couple of years.

Speaker #1: On the back of those comments, cost of risk, again, broadly flat year-on-year, 10 basis points to 0.7% versus 0.6%. And on the MPL ratio, MPL ratio moving up, again, the same comments that I've made previously.

Speaker #1: The portfolio is shifting towards lower-risk merchant finance and car loan, the car loan being secured. What that means is that the probability of collection on MPLs is improving.

David Ferguson: A good indication, a good lead indicator for, for credit quality. Again, exactly the same sort of conclusion, 2.2%, a very low delinquency rate. Again, the trend broadly stable over the last couple of years. Whilst a lot of people are, are focused on peers and then NPL metrics, it's also important when you look at peers to actually look at their sort of real-time risk metrics to get a true understanding of the health of the portfolio. On the back of those comments, cost of risk, again, broadly flat year-on-year, up 10 bps to 0.7% versus 0.6%. On the NPL ratio, NPL ratio moving up. Again, the same comments that I've made previously.

Speaker #1: So, we keep more MPLs on the balance sheet. This ratio is effectively just the time, driven by the timing of write-off rather than the quality of the portfolio.

David Ferguson: Whilst a lot of people are, are focused on peers and then NPL metrics, it's also important when you look at peers to actually look at their sort of real-time risk metrics to get a true understanding of the health of the portfolio. On the back of those comments, cost of risk, again, broadly flat year-on-year, up 10 bps to 0.7% versus 0.6%. On the NPL ratio, NPL ratio moving up. Again, the same comments that I've made previously. As the portfolio is shifting towards lower risk merchant finance and car loan, the car loan being secured, what that means is that the probability of collection on NPLs is improving.

Speaker #1: As we keep more loans on the port, on the balance sheet, because the probability of collection is improving, with a higher probability, lower MPL coverage, particularly for car loan, which is a secured product.

Speaker #1: So, effectively, this coverage ratio is just a function of the change in the coverage ratio. It's just a function of the change in the mix of the loan portfolio in favor of lower-risk products that require lower levels of coverage.

Speaker #1: And as mix changes, that will determine how the MPL ratio coverage ratio changes over time. It's not a change in the underlying coverage of a specific product, necessarily.

David Ferguson: As the portfolio is shifting towards lower risk merchant finance and car loan, the car loan being secured, what that means is that the probability of collection on NPLs is improving. We keep more NPLs on the balance sheet. This ratio is effectively just the timing, driven by the timing of write-off rather than the quality of the portfolio. As we keep more loans on the balance sheet because the probability of collection is improving with a higher probability, lower NPL coverage, particularly for the car loan, which is a secured product. Effectively, this coverage ratio is just a function. The change in the coverage ratio is just a function of the change in mix of the loan portfolio in favor of lower risk products that require lower levels of coverage.

Speaker #1: So here are the reported consolidated numbers. Revenue of 31% year on year. EBITDA of 9% year on year. And net income flat down 1% year on year.

David Ferguson: We keep more NPLs on the balance sheet. This ratio is effectively just the timing, driven by the timing of write-off rather than the quality of the portfolio. As we keep more loans on the balance sheet because the probability of collection is improving with a higher probability, lower NPL coverage, particularly for the car loan, which is a secured product. Effectively, this coverage ratio is just a function. The change in the coverage ratio is just a function of the change in mix of the loan portfolio in favor of lower risk products that require lower levels of coverage.

Speaker #1: So, just to put a bit more colour around the net income trend, there are two things that are really driving it. One, higher interest expense.

Speaker #1: So, I mentioned funding costs in Kazakhstan have gone up 220 bps year on year. So, it's funding costs actually in both Kazakhstan and Turkey.

Speaker #1: Number one. And number two, COGS. What does that mean? That is driven by the inclusion of hefty borrower, which has this wonky business that comes with COGS for three months versus two months, previously.

David Ferguson: As mix changes, that will determine how the NPL ratio, coverage ratio changes over time. It's not a change in the underlying coverage of a specific product necessarily. Here are the reported consolidated numbers. Revenue up 31% year on year. EBITDA up 9% year on year, and net income flat, down 1% year on year. Just to put a bit more color around the net income trend, there's 2 things that are really driving it. One, higher interest expense. I mentioned funding costs in Kazakhstan have gone up 220 bps year on year. It's funding costs actually in both Kazakhstan and Turkiye, number 1. Number 2, COGS. What does that mean? That is just driven by the inclusion of Hepsiburada, which has this wonky business that comes with COGS for 3 months versus 2 months previously.

Speaker #1: Thereafter, if you look at the other cost lines, yes, we're making investments into Hefty Borrower. But if you look at the weight of the expense, which 10 products spend or sell, some marketing spend, it's weighing on profitability.

Speaker #1: It's actually relatively minor, under control, where we'd expect it to be. On the guidance: GMV around 20% for the full year—on track, unchanged. Same comment for DPV, 15%—on track, unchanged.

Speaker #1: And on the TFV, the around 55%, while trending below that, currently to some extent it's a mute point. The key is to drive faster revenue growth rather than necessarily to drive 5% TFV growth.

David Ferguson: Number 2, COGS. What does that mean? That is just driven by the inclusion of Hepsiburada, which has this wonky business that comes with COGS for 3 months versus 2 months previously. Thereafter, if you look at the other cost lines, yes, we're making investments into Hepsiburada. If you look at the weight of the extent to which tech and product spend or sales and marketing spend is weighing on profitability is actually relatively minor, under control where we'd expect it to be. On the guidance, GMV around 20% for the full year on track, unchanged.

Speaker #1: Overall, that's trending to around 5% on track, around 5% EBITDA growth for the year. Clearly above that in the first quarter, therefore implying, slower growth in, in, in sub-subsequent quarters.

David Ferguson: Thereafter, if you look at the other cost lines, yes, we're making investments into Hepsiburada. If you look at the weight of the extent to which tech and product spend or sales and marketing spend is weighing on profitability is actually relatively minor, under control where we'd expect it to be. On the guidance, GMV around 20% for the full year on track, unchanged. Same comment for TPV, 15% on track, unchanged. On the TFE, the around 5% whilst trending below that currently, to some extent it's a moot point. The key is to drive faster revenue growth rather than necessarily to drive 5% TFE growth. Overall, that's trending to around 5%. We're on track for around 5% EBITDA growth for the year.

Speaker #1: But pretty much exactly where we want to be at this point in time. So, on that note, let's open the call up to Q&A.

Speaker #1: Please, Elliot.

Speaker #2: Thank you. For our Q&A, if you would like to ask a question, please press the raise hand icon found on your screen. If you've joined the call by Zoom, or if you've joined us on the phone, please press star one (*) on your telephone to queue up.

Speaker #2: When preparing to ask you a question, please ensure your line is unmuted locally. First question comes from Gavor Khameni. Please state your company name and proceed with your question.

David Ferguson: Same comment for TPV, 15% on track, unchanged. On the TFE, the around 5% whilst trending below that currently, to some extent it's a moot point. The key is to drive faster revenue growth rather than necessarily to drive 5% TFE growth. Overall, that's trending to around 5%. We're on track for around 5% EBITDA growth for the year. Clearly above that in the Q1, therefore implying slower growth in sub-subsequent quarters, but pretty much exactly where we want to be at this point in time. On that note, let's open the call up to Q&A, please, Elliot.

Speaker #3: Hi there. This is Gavor Khameni from Autonomous Research. I have a few questions. The first one will be on Turkey, about your loss being narrowed significantly in Q1.

Speaker #3: you are guiding us toward, break-even EBITDA. Going forward, can you give us a sense of what sort of losses, shall we assume? for 2026, in Turkey?

David Ferguson: Clearly above that in the Q1, therefore implying slower growth in sub-subsequent quarters, but pretty much exactly where we want to be at this point in time. On that note, let's open the call up to Q&A, please, Elliot.

Speaker #3: Second one, we'll be on the market stake rate. We just showed a very decent increase in the first quarter. Can you give us a flavour of how much seasonality did you notice there in the first quarter?

Operator: Thank you. For our Q&A, if you would like to ask a question, please press the Raise Hand icon found on your screen if you've joined the call via Zoom. If you've joined us on a phone, please press star one on your telephone keypad. When preparing to ask your question, please ensure your line is unmuted locally. First question comes from Gabor Kemeny. Please state your company name and proceed with your question.

Speaker #3: And, and, and what shall we model here, going forward? Some guidance will be helpful. And then, finally, you made a point that Kazakh interest rates falling might impact your NII next year.

Speaker #3: can you give us some sensitivities to your, to your funding costs and your, and your NIM to, to falling Kazakh rates? And can you comment on what you actually expect?

Speaker #3: How do you actually expect Kazakh rates to develop from here? Thank you.

Gabor Kemeny: Hi there. This is Gabor Kemeny from Autonomous Research. I have a few questions. First one will be on Turkey, where your losses narrowed significantly in Q1. You are guiding us towards break-even EBITDA going forward. Can you give us a sense of what sort of losses shall we assume over 2026 in Turkey? Second one will be on the marketplace take rate, which showed a very decent increase in Q1. Can you give us a flavor how much seasonality do you notice there in Q1? What shall we model here going forward? Some guidance would be helpful. Finally, you made a point that Kazakh interest rates falling might impact your NII next year.

Speaker #2: Okay, Gavor. Thanks for the questions. Maybe I'll start and then, Mikhail may add some additional comments. So I'll, I'll do it in reverse. So on the last one, on interest rates, cuts, we don't assume any interest rate cuts in the guidance.

Speaker #2: This, this, this year. I think what you can do, what we can do, and what you can do is just look at trends in inflation later.

Speaker #2: And you can see that inflation appears to have peaked in Kazakhstan in September and has started to fall at quite a decent rate over the last couple of months.

Speaker #2: So that's an encouraging lead indicator. in terms of sensitivity, I would advise us to look at, the full year results presentation from last year because there you see, the impact we, we pulled out, the impact of last year's interest rate increases on the net income in, in, in Kazakhstan.

Gabor Kemeny: What shall we model here going forward? Some guidance would be helpful. Finally, you made a point that Kazakh interest rates falling might impact your NII next year. Can you give us some sensitivities to your, to your funding cost and your, and your NIM to falling Kazakh rates? Can you comment on how you actually expect Kazakh rates to develop from here? Thank you.

Speaker #2: So I think broadly, if I remember correctly, if you look at 2025 in Kazakhstan, interest rates moving, or our cost of funding moving up by somewhere between 100 to 150 bps, knocked around sort of 4% off the net income growth in Kazakhstan.

Gabor Kemeny: Can you give us some sensitivities to your, to your funding cost and your, and your NIM to falling Kazakh rates? Can you comment on how you actually expect Kazakh rates to develop from here? Thank you.

Speaker #2: But that was also the set out last year, so that would be a decent proxy for you to take. On the marketplace stake rate, I would say it's sort of anything to do with seasonality.

David Ferguson: Okay, Gabor, thanks for the questions. Maybe I'll start and then Mikheil may add some additional comments. I'll do it in reverse order. On the last one on interest rate cuts, we don't assume any interest rate cuts in the guidance this year. I think all you can do or we can do and all you can do is just look at trends in inflation data, and you can see that inflation, it has peaked in Kazakhstan in September and has started to fall at quite a decent rate over the last couple of months. That's an encouraging lead indicator.

Speaker #2: It's a function of advertising and delivering as being a trend of many years of growing value-added services. which has been additive to, to, to stake rate.

Speaker #2: And I would just look at, again, the sort of increase that you've seen last year, year-on-year, and use that as a proxy for what you might expect to see.

Speaker #2: This year, on Turkey, we guide EBITDA break-even—at least EBITDA break-even. We've also talked about free cash flow positive. It's the guardrails we're putting around this business.

David Ferguson: In terms of sensitivity, I would advise just to look at the full year results presentation from last year, because there you see the impact we called out the impact of last year's interest rate increases on the net income in Kazakhstan. I think broadly, if I remember correctly, if you look in 2025 in Kazakhstan, interest rates moving or our cost of funding moving up by somewhere between 100 to 150 bps knocked around sort of 4% off the net income growth in Kazakhstan. That was all sort of set out last year, so that would be a decent proxy for you to take. On the marketplace take rate, I wouldn't say it's sort of anything to do with seasonality.

Speaker #2: I wouldn't specifically comment on, net, net, net income. And I'd also just comment that the main focus is really driving engagement, making the investments to drive engagement on the platform, which will, you'll see first of all through the orders.

Speaker #2: And that's the best of the lead indicator for the progress that we're, we're, we're making.

Speaker #3: It's very clear. Thank you, David.

Speaker #2: Thanks, Gavor. next question, please.

Speaker #3: We now turn to Matt Makarov. Your line is open. Please go ahead.

David Ferguson: It's a function of advertising and delivery, and there's been a trend over many years of growing value-added services, which has been additive to take rate. I would just look at, again, the sort of the increase that you've seen last year on year, and use that as a proxy for what you might expect to see this year. On Turkey, we guide EBITDA breakeven, at least EBITDA breakeven. We've also talked about free cash flow positive as the guardrails we're putting around this business. I wouldn't specifically comment on net income. I'd also just comment that the main focus is really driving engagement, making the investments to drive engagement on the platform, which you'll see first of all through the orders, and that's the best sort of lead indicator for the progress that we're making.

Speaker #4: yeah.

Speaker #2: Hi, Matt.

Speaker #4: Hi. Sorry. Thank you for the presentation. I appreciate your comments regarding the first quarter being more focused on financials. But I have to ask about the, the 10% that recently acquired minority stake.

Speaker #4: So how should we think about any potential strategic synergies going forward from that? And whether it changes in any way you're positioning the super app in Kazakhstan, in Turkey.

Speaker #4: That's the first question. the second one is about the, the marketplace growth in, in Kazakhstan specifically. And, updates, on, smartphone situation has normalised. And whether you see any impact on the, from the current situation in the, in the Middle East on the electronic supply.

David Ferguson: I'd also just comment that the main focus is really driving engagement, making the investments to drive engagement on the platform, which you'll see first of all through the orders, and that's the best sort of lead indicator for the progress that we're making.

Speaker #4: and the third one, final one is on the guidance and, we saw EBITDA growth, trending above the full year guidance. it's 9%. but the guidance hasn't changed.

Gabor Kemeny: It's very clear. Thank you, David.

Speaker #4: So what kind of factors do you take into account when, kind of maintaining the, the guidance? Should we expect some heavier investments in Turkey or any other, any other reasons?

David Ferguson: Thanks, Gabor. Next question, please.

Speaker #4: Thank you.

Speaker #2: All right. Thanks for your, questions. Matt. I'll take, questions on sort of marketplace growth and guidance and maybe Mikhail will make a comment on both the 10% and his own in, in, in investments.

Operator: We now turn to Max Nekorov. Your line is open. Please go ahead.

Operator: We now turn to [Max Nekorov]. Your line is open. Please go ahead.

Max Nekorov: Oh, yeah.

Operator: Oh, yeah.

David Ferguson: Hi, Max.

Speaker #2: So, yeah, just keep in mind it's the first quarter. The first quarter is exactly where the smaller quarter of the year. Q4 is the most important quarter of the year.

Max Nekorov: Hi. Thank you for the presentation. I appreciate your comments regarding the first call being more focused on financials, but I have to ask about Tencent recently acquiring a minority stake. How should we think about any potential strategic synergies going forward from that and whether it changes in any way your positioning, the Super App in Kazakhstan and Turkey? That's the first question. The second one is about marketplace growth in Kazakhstan specifically and any updates on the smartphone situation. Has it normalized? Whether you see any impact from the current situation in the Middle East on the electronic supply.

Max Makarov: Hi. Thank you for the presentation. I appreciate your comments regarding the first call being more focused on financials, but I have to ask about Tencent recently acquiring a minority stake. How should we think about any potential strategic synergies going forward from that and whether it changes in any way your positioning, the Super App in Kazakhstan and Turkey? That's the first question. The second one is about marketplace growth in Kazakhstan specifically and any updates on the smartphone situation. Has it normalized?

Speaker #2: It's pretty much where we'd expect it to, to, to be. You will see, in subsequent quarters, the timing of investments, having more of an impact on EBITDA and the, the, the bottom line.

Speaker #2: So I wouldn't get carried away. That's the— the first thing. On the marketplace growth, I'd say no material. There may have been some disruption, but I'd say no material.

Speaker #2: Disruption. As a result of what's going on in the Middle East and supply chain, disruption. And broadly speaking—and it's a very general comment—the current macro situation is probably, of the current geopolitical situation, probably more positive than negative for Kazakhstan.

Max Makarov: Whether you see any impact from the current situation in the Middle East on the electronic supply. The third one, final one is on the guidance, and we saw EBITDA growth trending above the full year guidance. It is 9%, but your guidance hasn't changed. What kind of factors do you take into account when maintaining the guidance? Should we expect some heavier investments in Turkey or any other reasons? Yeah. Thank you.

Max Nekorov: The third one, final one is on the guidance, and we saw EBITDA growth trending above the full year guidance. It is 9%, but your guidance hasn't changed. What kind of factors do you take into account when maintaining the guidance? Should we expect some heavier investments in Turkey or any other reasons? Yeah. Thank you.

Speaker #2: Macro. But a lot depends on how things evolve over time. So that's on your second and third question. On 10%, Mikhail, is there anything you'd like to add?

Speaker #3: I mean, it's a, it's a, it's, it's exciting to have such a shareholder and, and the team that we're working on the transaction with in general.

David Ferguson: All right. Thanks for your questions, Max. I'll take the questions on sort of marketplace growth and guidance. Maybe Mikheil will make comments on both the Tencent and his own investment. Yeah, just keep in mind it's Q1. Q1 is exactly where it's the smallest quarter of the year. Q4 is the most important quarter of the year. It's pretty much where we'd expect it to be. You will see in subsequent quarters the timing of investment having more of an impact on EBITDA and the bottom line. I wouldn't get carried away. That's the first thing. On the marketplace growth, I'd say no material.

Speaker #3: We have the 10, you know, 10% is the pioneer of the super app business model. So, you know, but, you know, I don't really have anything specific to comment.

Speaker #3: But in general, when you look at Kaspi, Kaspi is the type of company which is, in the team, which is really hungry for, for knowledge and constant development and improving, and, and, and, and, and developing some of the really incredible innovative services which, yeah, which we always have a short pipeline of.

Speaker #3: So I guess, you know, having this relationship with, with 10%, and, you know, some other companies, actually benefiting, really, us, but also we have a lot to share.

David Ferguson: There may have been some disruption, but I'd say no material disruption as a result of what's going on in the Middle East and of supply chain disruption. Broadly speaking, and as a very general comment, the current macro situation is probably or the current geopolitical situation is probably more positive than negative for Kazakhstan macro. A lot depends on how things evolve over time. That's on your second and third question. On Tencent, Mikheil, is there anything you'd like to add?

Speaker #3: So, there's nothing really specific at the moment which I would like to discuss on this call. But again, you should always keep in mind that you are working with the company and with the management team, which is hungry and, as ever, is constantly learning.

Speaker #3: And constantly thinking, you know, what is the next, breakthrough product which is going to change consumer, evolutionarize, actually, consumer experience of the merchant experience.

Speaker #3: So having such a shareholder is a good thing for us. Thank you.

Speaker #4: Great. Thank you so much.

Mikheil Lomtadze: I mean, it's exciting to have such a shareholder and the team that was working on the transaction in general. We have been quite admirers of Tencent, you know, believing that Tencent is the pioneer of the super app business model. You know, but, you know, I don't really have anything specific to comment. In general, when you look at Kaspi.kz, Kaspi.kz is the type of company which is and the team, which is really hungry for knowledge and constant development and improving and developing some of the really incredible innovative services which we always have very strong pipeline of.

Speaker #3: We now turn to James Friedman. Please state your company, name, and proceed with your question.

Speaker #5: Hi, good evening, good morning. It's Jamie at Susquehanna. So, w-when you originally bought Kaspi, your observations were that the service quality was below what you are accustomed to delivering, and that you needed to invest in Kaspi, especially in terms of delivery.

Speaker #5: I was wondering where you think you are on that journey now. is, you know, and, and the metrics that you use, what are you focused on?

Speaker #5: How have you improved the service, and what are your future objectives with it?

Mikheil Lomtadze: I guess, you know, having this relationship with Tencent, and, you know, some other companies, actually benefiting really us. Also we have a lot to share. There is nothing really specific at the moment which I would like to discuss on this call. Again, you should always keep in mind that you're, you are working with the company and with the management team, which is as hungry and as ever, is constantly learning and constantly thinking, you know, what is the next breakthrough product which is going to change consumer, revolutionize actually consumer experience or the merchant experience? Having such a shareholder is a good thing for us. Thank you.

Speaker #3: So I guess I'll take this one, David. Yeah. So in terms of the, of the strategy, you know, the strategy in our understanding of the, of the word strategy is, is this is not the thing which you sort of turn on, on, on off from one call to another.

Speaker #3: So, we did have a substantial discussion about some of the metrics which were, we would like to, to bring our, our Turk business towards.

Speaker #3: And those metrics are really the Kaspi metrics, and they're related to the frequency of the consumer, purchases, speed of delivery, and accessibility of the financial options on Marketplace, which again drive the GST per consumer.

Operator: Great. Thank you so much. We now turn to James Friedman. Please state your company name and proceed with your question.

Speaker #3: So, those metrics have been improving, quite nicely. during last year, and we see pretty much the same, the same trend. Again, we, we, we re-retain again exactly the same focus.

James Friedman: Hi. Good evening, good morning. It's Jamie at Susquehanna. When you originally bought Hepsiburada, your observations were that the service quality was below what you are accustomed to delivering and that you needed to invest in Hepsi, especially in terms of delivery. I was wondering where you think you are in that journey now. Is, you know, and the metrics that you use, what do you focus on? How have you improved the service, and what are your future objectives with it?

Jamie Friedman: Hi. Good evening, good morning. It's Jamie at Susquehanna. When you originally bought Hepsiburada, your observations were that the service quality was below what you are accustomed to delivering and that you needed to invest in Hepsi, especially in terms of delivery. I was wondering where you think you are in that journey now. Is, you know, and the metrics that you use, what do you focus on? How have you improved the service, and what are your future objectives with it?

Speaker #3: So everything we do, of I, I, I need to make one sort of dis comment that it's where we would like that we deliver the same quality of the, of the experience in Turkey.

Speaker #3: Like, we, we do in our home market. So that's our goal. It doesn't mean that the experience currently is, is, am is as good as, as, as other, players in the market.

Speaker #3: and again, all the investments we're doing, they are around technology. They are around, organizing the, the data. So that it's readily available in the structure for real-time decision-making and, you know, some of the models which we're currently building, to enhance consumer and merchant experience.

Mikheil Lomtadze: I guess I will take this call, David. Yeah. In terms of the strategy, you know, the strategy in our understanding of the word strategy is this is not the thing which you sort of turn on or off from one call to another. We did have a substantial discussion about some of the metrics which we would like to bring our Turkey business towards. Those metrics are really the Kaspi.kz's metrics, and they're related to the frequency of the consumer purchases, speed of delivery, and accessibility of the financial options on the marketplace, which again drive the GMV per consumer.

Speaker #3: And then to deliver as, as, as quickly as possible, and deliver what we can or deliver on holidays, but actually deliver the items when consumers want them.

Speaker #3: So, if you think from the numbers perspective, this is where all the investments are going. And the increase that you saw in the investments was actually around those priorities.

Speaker #3: So we're, we're quite pleased. and that's what is reflected in the, in the growth as well. And the reason why we're pleased is that these decisions which we're making and, and the new initiatives which we're sort of rolling out and completing, on the, again, delivery payment options, the advertising products, personalization, risk management, marketing, all those are giving the, the results which you see in the growth.

Mikheil Lomtadze: Those metrics have been improving quite nicely during last year, and we see pretty much the same, the same trend. Again, we retain, you know, exactly the same focus. Everything we do, I need to make one sort of comment that we would like that we deliver the same quality of the experience in Turkey like we do in our home market. That's our goal. It doesn't mean that the experience currently is, I mean, is as good as other players on the market. And again, all the investments we're doing, they are around technology. They are around organizing the data so that it's readily available and is structured for real-time decision-making.

Speaker #3: And that's what keeps us really excited for such a large market. And just to go back again to our strategic strategy, is that the, the e-commerce in Kazakhstan, where we started our business, we started from sort of initial fintech payments and then e-commerce.

Speaker #3: And in Turkey, we're working backwards because we actually do have a very strong consumer base. We do have the, the, the strong base of the merchants.

Speaker #3: And we do have a, an online interaction and traffic, and engagement from both. So now what we need to do is we need really to roll out some of the services and technology which, which we have in-house and, and that's what you actually see some of the numbers for the first year.

Speaker #5: Okay. Great. And, when you, when you think about the engagement is increasing significantly, when you, when you think about where that could potentially go, how do you see that traveling?

Mikheil Lomtadze: You know, some of the models which we're currently building to enhance consumer and merchant experience. Then to deliver as quickly as possible, and deliver on the weekends or deliver on holidays, but actually deliver the items when consumers want them. If you think from the number perspective, this is where all the investments are going. The increase that you saw in the investments were actually around those priorities. We're quite pleased. That's what is reflected in the growth as well. The reason why we're pleased is that these decisions which we're making and the new initiatives which we're sort of rolling out and completing, on the again, delivery, payment options, the advertising products, personalization, risk management, marketing, all those are giving the results which you see in the growth.

Speaker #5: The, I think the statistics are that the average US consumer transacts e-commerce 40 times a year. I think the average Brazilian is about 10 times a year.

Speaker #5: So, where do you think that will travel to over the long term in Turkey, Miguel?

Speaker #3: Yeah. Well, I mean, David, in our, in our case, our sort of benchmark is really, what we have already achieved in our home market.

Speaker #3: And if you think in terms of our home market, you know, if I'm not mistaken, the numbers which we've discussed in the year-end was it about 27 purchases per consumer.

Mikheil Lomtadze: The reason why we're pleased is that these decisions which we're making and the new initiatives which we're sort of rolling out and completing, on the again, delivery, payment options, the advertising products, personalization, risk management, marketing, all those are giving the results which you see in the growth. That's what keeps us really excited for such a large market. Just to go back again to our strategic strategy is that the e-commerce in Kazakhstan, where we started our business, we started from sort of financial, fintech, payments, and then e-commerce. In Turkey, we're working backwards, because we actually do have very strong consumer base. We do have the strong base of the merchants, and we do have the online interaction and traffic, and the engagement from both.

Speaker #3: And I think, in, in, in, in our home market, in Kazakhstan. And there are about 7 purchases per consumer in Turkey. So that just gives you an understanding where, what we're really focused on.

Speaker #3: And again, we're not inventing anything. We're basically taking our playbook and we're focused, you know, on execution and making sure the technology and data supports it.

Mikheil Lomtadze: That's what keeps us really excited for such a large market. Just to go back again to our strategic strategy is that the e-commerce in Kazakhstan, where we started our business, we started from sort of financial, fintech, payments, and then e-commerce. In Turkey, we're working backwards, because we actually do have very strong consumer base. We do have the strong base of the merchants, and we do have the online interaction and traffic, and the engagement from both. Now what we need to do is we really need to roll out some of the services and technology which we have in-house. That what you actually see in some of the numbers for Q1.

Speaker #3: So, that's, that's where our primary focus on. And, and of course, this, this sort of engagement, you know, you are required to make some investments in order to explain your user experience, in order to market it.

Speaker #3: and, and that's why this year is more of the, you know, I would call it an investment year. We do have rules which we would like to still remain a, a profitable dividend-paying company.

Speaker #3: We do have a, a array of for the, for the decisions we make. But that's our focus. So we want to, to increase the consumer engagement.

Mikheil Lomtadze: Now what we need to do is we really need to roll out some of the services and technology which we have in-house. That what you actually see in some of the numbers for Q1.

Speaker #3: We want to have the right assortment for that engagement. We want to have the right merchant base. And, and delivery and the payment methods which support that.

Speaker #3: But the difference, again, as I mentioned, around 7 in Turkey and around 27 in, in, in, in Kazakhstan. And in Kazakhstan, growing really, really fast.

James Friedman: Okay, great. The engagement is increasing significantly. When you think about where that could potentially go, how do you see that traveling? I think the statistics are that the average US consumer transacts e-commerce 40 times a year. I think the average Brazilian is about 10 times a year. Where do you think that that will travel to over long term in Turkey, Mikheil?

Jamie Friedman: Okay, great. The engagement is increasing significantly. When you think about where that could potentially go, how do you see that traveling? I think the statistics are that the average US consumer transacts e-commerce 40 times a year. I think the average Brazilian is about 10 times a year. Where do you think that that will travel to over long term in Turkey, Mikheil?

Speaker #3: So, it will be even bigger this year. So, basically, that will be our sort of goal for Turkey.

Speaker #5: Okay. Perfect. Thank you. I'll jump back in the queue.

Speaker #3: Thank you, James.

Speaker #1: We now hand, hand over to Hamzad Kalikaran. Please state your company name and receive your question.

Speaker #6: Miguel, it's David. Thank you for the presentation. I'm Hamzad Kalikaran. I'm very happy to be at JP Morgan. if I may, I would like to ask a few questions on your strategy, for HEPC, explore this question has been partially answered.

Mikheil Lomtadze: Yeah. Well, I mean, David, in our case, our sort of benchmark is really what we have already achieved in our home market. If you think in terms of our home market, you know, if I'm not mistaken, the numbers which we have discussed in the year-end, was it about 27 purchases per consumer? I think in our home market in Kazakhstan, and there are about 7 purchases per consumer in Turkey. That just gives you an understanding where, what we're really focused on. Again, we're not inventing anything. We're basically taking our playbook, and we're focused, you know, on execution and making sure that technology and data supports it. That's where our primarily focus on.

Speaker #6: But, you have consuming some cash in Turkey after stepping up in marketing campaigns in the past few quarters. And this also seems to put some pressure on the working capital outlook.

Speaker #6: I mean, particularly in this quarter, which may be the seasonal shift. I wonder, how long will you continue on this strategy? And is there a specific KPI target that you would like to reach before normalizing the marketing activities?

Speaker #6: That's my first question. The second one is, we have also observed some decline in consumer financing activities in the first quarter in Turkey. Is this a deliberate decision, like pausing on HEPC pay products before you finalize your license approval in Turkey?

Mikheil Lomtadze: Of course, this sort of engagement, you know, you are required to make some investments in order to explain your user experience, in order to market it. That's why this year is more of the, you know, I would call it an investment year. We do have our rules, which we would like to still remain a very profitable dividend paying company. We do have a guardrails for the decisions we make, but that's our focus. We want to increase the consumer engagement. We want to have the right assortment for that engagement. We want to have the right merchant base and delivery and the payment methods which support that. The difference, again, as I mentioned, around seven in Turkey and around 27 in Kazakhstan.

Speaker #6: And the third one is that, after the initiatives that you have taken in Turkey, like lifting of the small ticket items which you have required successfully actually, have you achieved a more diversified GMB, GMB as per category?

Speaker #6: Thank you.

Speaker #3: Yeah. Thank you for the questions. so in terms of if I got them right, but you could tell me if I missed anything. So in terms of the, in terms of the consumer finance, on the consumer finance side, you know, we have, our, sort of way of really working both on the product side, but most importantly, risk management.

Mikheil Lomtadze: We want to have the right assortment for that engagement. We want to have the right merchant base and delivery and the payment methods which support that. The difference, again, as I mentioned, around seven in Turkey and around 27 in Kazakhstan. In Kazakhstan growing really, really fast, so it will be even bigger this year. Basically, that would be our sort of goal for Turkey.

Speaker #3: it's not only about originating consumer finance, but actually, it's about originating that to the right person at the right time with the right amount, but also in a way that the, the, the, the people are sort of repaying you, basically.

Mikheil Lomtadze: In Kazakhstan growing really, really fast, so it will be even bigger this year. Basically, that would be our sort of goal for Turkey.

James Friedman: Okay, perfect. Thank you. I'll drop back in the queue.

Jamie Friedman: Okay, perfect. Thank you. I'll drop back in the queue.

Speaker #3: So originating is, is when you originate the wrong consumer finance, it's, it's not an asset. It's a liability. For the company in terms of the risk.

Mikheil Lomtadze: Thank you, David.

Operator: We now hands over to Hanzade Kilickiran. Please state your company name and proceed with your question.

Speaker #3: So we have been, really happy with, with the way we have, rolled out the, you know, the new risk management system. And as we were rolling, rolling, rolling out this management system, you know, we basically slowed down the origination.

Hanzade Kilickiran: Hi, Mikheil, David. Thank you for the presentation. I'm Hanzade Kilickiran, covering Hepsiburada at JPMorgan. If I may, I would like to ask few questions on your strategy for Hepsi. Actually, this question has been partially answered. You have been consuming some cash in Turkey after stepping up in marketing campaigns in the past few quarters. This also seemed to put some pressure on the working capital outflows, I mean, particularly in this quarter, which may be though a seasonal shift. I wonder how long will you continue on this strategy. Is there a specific KPI target that you would like to reach before normalizing the marketing activities? That's my first question. The second one is, we have also observed some decline in consumer financing activities in Q1 in Turkey.

Speaker #3: For everybody's benefit on the call, the HEPC data has a fully owned consumer finance subsidiary. So actually, you know, we in Turkey can originate consumer loans.

Speaker #3: but we wanted to get first, the whole system, which, you know, Kaspi has to bring it to the, to, to our business in Turkey.

Speaker #3: And then, you know, we feel now increasingly comfortable with the, with the opportunities to do, more in the, in the consumer finance. So that's, that's on the consumer finance side.

Hanzade Kilickiran: The second one is, we have also observed some decline in consumer financing activities in Q1 in Turkey. Is this a deliberate decision like pausing on Hepsipay products before you finalize your license approval in Turkey? The third one is that, after the initiatives that you have taken in Turkey, like listing of the small ticket items, which you have been quite successful actually, have you achieved a more diversified GMV per category? Thank you.

Speaker #3: Again, we were not in a hurry. We didn't want to originate anything, above the normal course of business. And we were putting together the risk systems and data management, in order to do it at an extraordinary quality, which is acceptable at the, at the, at our level, like we have, you know, cost of risk a bit over 2 in, in Kaspi, which is world-class.

Hanzade Kilickiran: Is this a deliberate decision like pausing on Hepsipay products before you finalize your license approval in Turkey? The third one is that, after the initiatives that you have taken in Turkey, like listing of the small ticket items, which you have been quite successful actually, have you achieved a more diversified GMV per category? Thank you.

Speaker #3: So that's on the consumer finance side. In terms of the diversification, well, what we have done really, last year is, is, is which gave us, as you said, very strong results is we are focused on the, on the merchants.

Mikheil Lomtadze: Yeah. Thank you for the questions. In terms of if I got them right, but you please tell me if I missed anything. In terms of the consumer finance, on the consumer finance side, you know, we have our sort of way of really working both on the product side, but most importantly, you know, risk management. It's not only about originating consumer finance, but actually it's about originating that to the right person at the right time with the right amount, but also in a way that the people are sort of repaying you basically. Originating is when you originate the wrong consumer finance, it's not an asset, it's a liability for the company in terms of the risk.

Speaker #3: And, and we've realized that, that if we want to promote the merchants and give them the ability to sell the low ticket items, we actually had to improve our delivery experience, but also provide the reasonable delivery fees.

Speaker #3: So that's what we have done last year. we continue doing it this year. We also rolled out, you know, our, data-driven logistics platform, which actually, you know, completing this in, in the first queue.

Speaker #3: And that's something which, with the help of our, you know, LLM forecasting models, you know, that will give us a substantial improvement in the, in the speed of delivery and the, and the quality.

Speaker #3: And we're, we're, we're quite happy with the performance. And we see the low ticket items growing really fast, but also 3P growing faster than 1P.

Mikheil Lomtadze: We have been really happy with the way we have rolled out the, you know, the new risk management system. As we were rolling out the risk management system, you know, we basically slowed down the origination. If for everybody's benefit on the call, Hepsiburada has fully owned consumer finance subsidiary. Actually, you know, we in Turkey can originate consumer loans. We wanted to get first the whole system, which, you know, Kaspi.kz has, to bring it to our business in Turkey, and then, you know, we're still now increasingly comfortable with the opportunities to do more in the consumer finance. That's on the consumer finance side. Again, we were not in a hurry.

Speaker #3: So that's on the, on the merchant side and low ticket. In terms of marketing, again, we're data-driven company, so we're not really focused on just, you know, making sort of driving the, the, the, the, the traffic, at short term.

Speaker #3: So we're not driven by the weekly targets or whatever. We're really driven by, you know, putting the system in place, which enables us to be, to have a profitable growth in the future.

Speaker #3: So from that perspective, we, when we do marketing, we're not solving short-term targets. We're actually building the engine to generate a very sustainable, recurring, and repetitive target—traffic from our consumers.

Speaker #3: And yeah, that's what, we have done last year. And that's what we'll continue doing this year. And our goal is simple, that the consumers that we acquire, they continue to be engaged with us and deliver value and the profits in the, in the future.

Mikheil Lomtadze: We didn't want to originate anything above the normal course of business, and we're putting together the risk systems and data management in order to do it at extraordinary quality, which is acceptable at our level. Like we have, you know, cost of risk a bit over 2 in Kaspi.kz, which is world-class. That's on the consumer finance side. In terms of the diversification, well, what we have done really last year is which gave us, as you said, the very strong results, is we are focused on the merchants and we've realized that if we want to promote the merchants and give them ability to sell the low-ticket items, we actually had to improve our delivery experience but also provide the reasonable delivery fees.

Speaker #3: But, you know, initially, really don't need to invest in order for consumers to experience your products and services.

Speaker #5: thank you, Mihai. So, is there a reasonable to say that your initial target is more like frequency focus, I mean, to take out the Turkey's frequency numbers close to Kaspi?

Speaker #3: Well, our focus is to engage the consumer base. And engaging the consumer base comes with frequency. So frequency is just one indicator that consumers love your products, and they come back to you and shop with you frequently.

Speaker #3: So yes, you are correct.

Speaker #5: Thank you very much.

Speaker #3: Thank you, Hamza.

Speaker #1: Well, yeah, as I said again, the lesser of—please state your company name. Proceed with the question.

Mikheil Lomtadze: That's what we have done last year. We continue doing it this year. We also roll out, you know, our data-driven logistics platform. We're actually, you know, completing this in Q1, and that's something which with the help of our, you know, LLM and forecasting models, you know, that will give us a substantial improvement in the speed of delivery and the quality. We're quite happy with the performance, and we see the low-ticket items growing really fast, but also 3P growing faster than 1P. That's on the merchant side and low tickets. In terms of the marketing, again, we're a data-driven company, so we're not really focused on just, you know, making sort of driving the traffic in the short term.

Speaker #6: Hi, this is Sergei calling from, Greyhound Capital. good to see, results, improvement in Turkey. I have, two, three questions. one is, on Rabobank, has there been any updates?

Speaker #6: or is there any reason for the delay? and then on, in Kazakhstan, on the payment take rate, you mentioned already that come down quite a bit.

Speaker #6: is that the, is there a reason, what are the reasons behind that? Is it the shared QR code? And, have we seen worse in terms of the drop, or, what's the current, situation?

Speaker #6: And, and what can we expect, going forward there? And lastly, on 10 cents, you already briefly touched on it. I would like to understand, is it, purely passive investment from 10 cents, or more deeper cooperation?

Mikheil Lomtadze: We're not driven by the weekly targets or whatever. We're really driven by, you know, putting the system in place, which enables us to have a profitable growth in the future. From that perspective, when we do marketing, we're not solving the short-term targets. We are actually building the engine to generate a very sustainable, recurring and repetitive target traffic from our consumers. Yeah, that's what we have done last year, and that's what we will continue doing this year. Our goal is simple, that the consumers that we acquire, they continue to be engaged with us and deliver value and the profits in the future. You know, initially, you really do need to invest in order for consumers to experience your products and services.

Speaker #6: And is there potential that they acquire a big stake in your company from maybe our larger shareholders who want to sell? Thank you.

Speaker #2: All right, Sergei. Thank you for your questions. Dr. Stanley, start. Payments take rate is nothing to... I know we've spoken before about national payment system.

Speaker #2: It's nothing to do with that. If you look at the sort of, take rate decline and you look at it over the last three, three years, three to five years for that matter, I think you see that it's, it's broadly consistent, each year.

Speaker #2: And it's largely been driven by Kaspi QR at 95 bps and Kaspi B2B payments, which is a lower take rate product, growing in share. So it's purely mix mechanical.

Hanzade Kilickiran: Thank you, Mihai. Is it reasonable to say that your initial target is more like frequency focus? I mean, to take up the Turkey's frequency numbers close to Kaspi.kz?

Speaker #2: and it will continue to the extent that Kaspi QR continues to outperform other payment products. but I guess can't broadly go below 95 bits.

Hanzade Kilickiran: Thank you, Mihai. Is it reasonable to say that your initial target is more like frequency focus? I mean, to take up the Turkey's frequency numbers close to Kaspi.kz?

Mikheil Lomtadze: Well, our focus is engaged consumer base. An engaged consumer base comes with a frequency. Frequency is just one indicator that consumers love your products, and they come back to you and shop with you frequently. Yes, you are correct.

Speaker #2: let's go to the floor. So that's on that. On Rabobank, what update, nothing to report. base case remains. that we hope to close transaction over either summer.

Speaker #2: It's kind of out of our hands. The wheel's in, the wheel's, turning slowly, but we continue to work and aim for closing at that point.

Hanzade Kilickiran: Thank you very much.

Mikheil Lomtadze: Thank you, Hande.

Operator: We now turn to Sergei Belessarov. Please state your company name and proceed with your question.

Speaker #2: on 10 cents, I'm not sure if there's much we can add. And I wouldn't want to sort of speculate on their behalf about what they might do or might not do in the future.

Sergei Belessarov: Hi, this is Sergei calling from Greyhound Capital. Good to see the results improvement in Turkey. I have two, three questions. One is on Rabobank. Has there been any update or is there any reason for the delay? In Kazakhstan, on the payment take rate, you mentioned already it has come down quite a bit. Is that the reason? What are the reasons behind that? Is it the shared QR code? Have we seen the worst in terms of the drop or what's the current situation and what can we expect going forward? Lastly, on Tencent, you already briefly touched on it. I would like to understand, is it purely passive investment from Tencent or more deeper cooperation?

Sergej Belozerov: Hi, this is Sergei calling from Greyhound Capital. Good to see the results improvement in Turkey. I have two, three questions. One is on Rabobank. Has there been any update or is there any reason for the delay? In Kazakhstan, on the payment take rate, you mentioned already it has come down quite a bit. Is that the reason? What are the reasons behind that? Is it the shared QR code?

Speaker #2: Maybe that, I think your question is a question for 10 cents, not a question for, for Kaspi.

Speaker #6: Well, perhaps just if it's pure passive investment or a deeper cooperation, maybe if you could answer that, that would be great.

Speaker #2: Yeah. All right. Sorry. Yeah. Fair, fair question. It's primarily a financial investment.

Speaker #6: Perfect. Thank you very much.

Speaker #1: Well, now, Sergei, we're not glad yet. Please state your company name and proceed with your question.

Sergej Belozerov: Have we seen the worst in terms of the drop or what's the current situation and what can we expect going forward? Lastly, on Tencent, you already briefly touched on it. I would like to understand, is it purely passive investment from Tencent or more deeper cooperation? Is there potential that they acquire a bigger stake in your company from maybe our larger shareholders who want to sell? Thank you.

Speaker #2: Rabobank, you might be on mute.

Speaker #4: Hey, hey, good afternoon. I hope you can hear me now. yes, this is Ronna from Generous. maybe I've worked about three questions. First one, I guess, is just a follow-up, from the previous caller.

Speaker #4: So on the payment side, obviously the decline in take rate is understood, and you can see that in revenue reduction. But I was just trying to understand what are, what are the factors that are driving the drop in EBITDA, because you could see the EBITDA was flat on the annual basis.

Sergei Belessarov: Is there potential that they acquire a bigger stake in your company from maybe our larger shareholders who want to sell? Thank you.

David Ferguson: All right, Serge. Thank you for your questions. I'll certainly start. Payments take rate is nothing to I know we've spoken before about national payment system. It's nothing to do with that. If you look at the sort of take rate decline, you look at it over the last 3 years, 3 to 5 years for that matter, I think you'd see that it's broadly consistent each year. It's largely been driven by Kaspi QR at 95 bps and Kaspi B2B payments, which is a lower take rate product growing in share. It's purely mix mechanical. It will continue to the extent that Kaspi QR continues to outperform other payment products. I guess can't broadly go below 95 bps. That's kind of the floor. That's on that. On Rabobank, no update, nothing to report.

Speaker #4: So, if you could just comment on what the drivers there, there were. then going to the FinTech space, like you mentioned, you know, the focus is to grow, the car, car finance and, and merchant loans.

Speaker #4: could you maybe give some guidance on what the implications of that would be, in terms of, you know, on, on, on, on NIMS, you know, what are the respective lending rates for those segments vis-à-vis, unsecured loans and, and, BNDL?

Speaker #4: And the last one, just on the recent capital that you raised—the $600 million—if you could just give some insights into how that will be deployed.

Speaker #4: Will it all, will all that be injected into Turkey, or will there be some sort of split between Turkey and, Kazakhstan? Thank you.

David Ferguson: I guess can't broadly go below 95 bps. That's kind of the floor. That's on that. On Rabobank, no update, nothing to report. Base case remains that we hope to close the transaction over by the summer. It's kind of out of our hands. The wheels turn slowly, we continue to work and aim for closing at that point. On Tencent, I'm not sure if there's much we can add, and I wouldn't want to sort of speculate on their behalf about what they might do or might not do in the future. I think your question is a question for Tencent, not a question for Kaspi.kz.

Speaker #2: Yeah, thanks, Ronna. One of the last questions—the official line is 'general corporate purposes.' What does that, that, that mean? There's no one specific big bank project.

Speaker #2: But across both Kazakhstan and Turkey, there's multiple initiatives, growth initiatives. And this just gives us more flexibility, in how we fund those, those initiatives.

David Ferguson: Base case remains that we hope to close the transaction over by the summer. It's kind of out of our hands. The wheels turn slowly, we continue to work and aim for closing at that point. On Tencent, I'm not sure if there's much we can add, and I wouldn't want to sort of speculate on their behalf about what they might do or might not do in the future. I think your question is a question for Tencent, not a question for Kaspi.kz.

Speaker #2: And we're pretty pleased that we were able to raise the 600 million dollars at the 5.9% rate that we were able to do that at.

Speaker #2: So more flexibility at a, a cost that makes a lot of, sense, for us. So that's on that side of, of, of things. I mean, on, FinTech take rate, I think you should look at the trend over the last 12 of FinTech, pricing.

Sergei Belessarov: Well, perhaps just if it's pure passive investment or a deeper cooperation. Maybe if you could answer that would be great.

Sergej Belozerov: Well, perhaps just if it's pure passive investment or a deeper cooperation. Maybe if you could answer that would be great.

Speaker #2: You should look at the trend over the last 12 months, the gross level that's been broadly stable. I wouldn't want to provide guidance going forward, but I wouldn't expect it to, be dramatically different to, to, to that going forward.

David Ferguson: Yeah. All right. Sorry. Yeah. Fair, fair question. It's primarily a financial investment.

Sergei Belessarov: Perfect. Thank you very much.

Sergej Belozerov: Perfect. Thank you very much.

Speaker #2: If there was another question that I've forgotten.

Speaker #4: Take, take rate on payments. I think, you know, take rate on payments, it's answered exactly the same. It's quite simple, and that's what some, something which we have said on every quarter.

Operator: We now turn to Ronak Gadia. Please state your company name and proceed with your question.

Speaker #4: of our, of our, results. Basically, that, that 0.95% is the, is the, is the acquiring fee on the, on the QR codes. And, and it's a share of QR codes is increasing.

David Ferguson: Ronak, you might be on mute.

Ronak Gadia: Hey. Hey, good afternoon. Hope you can hear me now. Yes, this is Ronak from Dunross. Maybe, well, I've got about 3 questions. First one, I guess, is just a follow-up from the previous caller. On, on the payment side, obviously the decline in take rate is understood, and you can see that in the revenue reduction. I was just trying to understand what are the factors driving the drop in EBITDA? Because you could see the EBITDA was flat on a year-on-year basis. If you could just comment on what the drivers there were. Going to the Fintech space, like you mentioned, you know, the focus is to grow the car finance and merchants loans.

Ronak Gadhia: Hey. Hey, good afternoon. Hope you can hear me now. Yes, this is Ronak from Dunross. Maybe, well, I've got about 3 questions. First one, I guess, is just a follow-up from the previous caller. On, on the payment side, obviously the decline in take rate is understood, and you can see that in the revenue reduction. I was just trying to understand what are the factors driving the drop in EBITDA? Because you could see the EBITDA was flat on a year-on-year basis. If you could just comment on what the drivers there were. Going to the Fintech space, like you mentioned, you know, the focus is to grow the car finance and merchants loans.

Speaker #4: And there's about 0.5 roughly on the B2B payments, which is increasing even faster. So it's, it's, it's a function of the faster growing, you know, bigger, bigger numbers, on the, on, on the payment side.

Speaker #4: And in terms of the EBITDA margin, I mean, this is, like, what, 50%—50-plus percent EBITDA margin business. So, I mean, from that perspective, it's really a very profitable business.

Speaker #4: It's just such a, such a huge scale that there's no really, you know, economies of scale at this stage. I mean, it's, it's, it's a big business.

Ronak Gadia: Could you maybe give some guidance on what the implications of that would be, in terms of, you know, on the NIMS? You know, what are the respective lending rates for those segments vis-a-vis unsecured loans and BNPL? The last one, just on the recent capital that you raised, the $600 million, if you could just give some insight into how that will be deployed. Will all of that be injected into Turkey, or will there be some sort of split between Turkey and Kazakhstan? Thank you.

Ronak Gadhia: Could you maybe give some guidance on what the implications of that would be, in terms of, you know, on the NIMS? You know, what are the respective lending rates for those segments vis-a-vis unsecured loans and BNPL? The last one, just on the recent capital that you raised, the $600 million, if you could just give some insight into how that will be deployed. Will all of that be injected into Turkey, or will there be some sort of split between Turkey and Kazakhstan? Thank you.

Speaker #4: It's matured, we do, are making some innovations, in this field, like, you know, pay by pound, for example, which has cost, you know, to the 1 million digital users already.

Speaker #4: And, and, and growing quite nicely, but again, this is a brilliant business which delivers profitability on the one hand, but also, most importantly, actually delivers the engagement from the consumers and merchants, which is the backbone for anything we do now. Whether you think in terms of the e-commerce, or if you think in terms of AI technology and things like that, that's the big bone for, you know, future, you know, innovation.

David Ferguson: Yeah. Thanks, Ronak. On the last question, the official line is general corporate purposes. What does that mean? There's no one specific big bang project, but across both Kazakhstan and Turkey, there's multiple initiatives, growth initiatives, and this just gives us more flexibility in how we fund those initiatives. We're pretty pleased that we were able to raise the $600 million at the 5.9% rate that we were able to do that at. More flexibility at a cost that makes a lot of sense for us. That's on that side of things. I mean, on Fintech take rate, I think you should look at the trend over the last 12 of Fintech pricing. You should look at the trend over the last 12 months at the growth level.

Speaker #4: So the direct monetization is, is nice, very important, but actually, as far as I'm concerned from 5, 10 years perspective, it's secondary. It really gives us, it gives us a huge advantage of having, you know, incredibly high-quality data, which enables us to train our, our models to be very precise in their decision-making.

Speaker #4: So thanks, guys.

Speaker #6: Thank you.

David Ferguson: That's on that side of things. I mean, on Fintech take rate, I think you should look at the trend over the last 12 of Fintech pricing. You should look at the trend over the last 12 months at the growth level. It's been broadly stable. I wouldn't want to provide guidance going forward, but I wouldn't expect it to be dramatically different to that going forward. I think there was another question that I've forgotten.

Speaker #1: We have no further questions, so I'll hand back to you, David, for any final remarks.

Speaker #2: All right. So, thanks. Yes, thanks everyone for your time today. Please feel free to reach out if you'd like to follow up on anything.

Speaker #2: No, we've got a few guys in Kazakhstan this week, so looking forward to seeing you. So, thanks a lot and speak soon. Thank you.

David Ferguson: It's been broadly stable. I wouldn't want to provide guidance going forward, but I wouldn't expect it to be dramatically different to that going forward. I think there was another question that I've forgotten.

Speaker #2: Bye-bye.

Speaker #4: Thank you. Bye-bye.

David Ferguson: Take rates on payments. I think, you know, take rates on payments, answer is exactly the same. It's quite simple, and that was something which we have said on every quarter of our results, is basically that 0.95% is the acquiring fee on the QR codes. And the share of QR codes is increasing. There is about 0.5 roughly on the B2B payments, which is increasing even faster. It's a function of the faster growing, you know, bigger numbers on the payment side. In terms of the EBITDA margin or I mean, this is like what? 50-plus percent EBITDA margin business.

Mikheil Lomtadze: Take rates on payments. I think, you know, take rates on payments, answer is exactly the same. It's quite simple, and that was something which we have said on every quarter of our results, is basically that 0.95% is the acquiring fee on the QR codes. And the share of QR codes is increasing. There is about 0.5 roughly on the B2B payments, which is increasing even faster. It's a function of the faster growing, you know, bigger numbers on the payment side. In terms of the EBITDA margin or I mean, this is like what? 50-plus percent EBITDA margin business.

Mikheil Lomtadze: I mean, from that perspective, I mean, it's really a very profitable business. It's just such a huge scale that there is no really, you know, economies of scale at this stage. I mean, it's a big business. It's mature. We do are making some innovations in this field, like, you know, Kaspi Alaqan, for example, which has close, you know, to the 1 million registered users already and growing quite nicely. Again, this is a really big business which delivers profitability on the one hand, but also, most importantly, actually delivers the engagement from the consumers and merchants, which is the backbone for anything we do now.

Mikheil Lomtadze: Whether you think in terms of the e-commerce or if you think in terms of AI technology and things like that's the big bone for, you know, future innovation. The direct monetization is nice, very important, but actually, as far as I'm concerned from 5, 10 years perspective, it's secondary. What it really gives us this huge advantage of having, you know, incredibly high-quality data, which enables us to train our models to be very precise in their decision-making.

Ronak Gadia: That's it. Thanks, guys.

Ronak Gadhia: That's it. Thanks, guys.

Mikheil Lomtadze: Thank you.

Operator: We have no further questions. I'll hand back to you, David, for any final remarks.

David Ferguson: All right. Thanks, Elias. Thanks everyone for your time today. Please feel free to reach out if you'd like to follow up on anything. I know we've got a few guys in Kazakhstan this week, so looking forward to seeing you. Thanks a lot, and speak soon. Thank you. Bye-bye.

Mikheil Lomtadze: Thank you. Bye-bye.

Operator: Thank you, everyone. This concludes today's webinar. You may now disconnect from the call.