Kaspi.kz JSC Q4 FY2024 earnings call

• Strong 4Q performance with all platforms showing growth. Payments TPV up 30%, Marketplace GMV up 39%, Fintech financing volumes up 21%. - Innovations include gift cards (over 50,000 purchases), e-Grocery (97% GMV growth, 84% transactions growth), Kaspi POS Register (35% of merchants using, processed 1.2 trillion payments), business deposit (77,000 merchants using, 443% growth in amounts), Buy-Inventory-Now-Pay-Later. - Hepsiburada acquisition closed in Jan, with regulatory approvals, first payment made, second to be paid mid-summer. - Focus on consumer and merchant Super Apps, continuous innovation in services.

Payments: TPV grew 30%, revenue 19%, net income 22%; Marketplace: GMV grew 39%, revenue 43%, net income 32%; Fintech: Financing volumes grew 21%, net income 28%. Consolidated: Revenue grew 28%, net income 28% in 4Q; full year revenue 32%, net income 25%. Payments TPV contribution, Marketplace GMV contribution, etc. were discussed with growth details.

• 20% bottom line guidance for 2025, excluding Turkey. - Funding Hepsiburada transaction from cash flow, no dividend in 4Q and first half. - Plan to return excess cash to shareholders in second half of 2025. - Simplified guidance approach, focusing on high-level metrics like GMV, TPV, TFV.

• Regional geopolitical trends impacting investor perception. - Currency volatility and its potential effect on P&L. - Changes in interest rates affecting fintech bottom line growth. - Consumer sentiment challenges due to macroeconomic transitions.

Q: About guidance, how does the 20% compare to last year's performance?

A: 20% guidance is a reflection of the scale of the business, with factors like yield dilution and rate changes affecting bottom line.

Q: What's the plan for Hepsiburada's integration and international expansion?

A: Kaspi sees opportunities in Turkey's mobile services and merchants, but Hepsiburada is an independent public company with its own management, and Kaspi will focus on product innovation and service launching.

Q: How do you view the macro environment in Kazakhstan and its impact?

A: Stable environment with consumer and merchant trends consistent, but fintech may be affected by currency weakness and interest rate changes.

Q: Clarification on BNPL for merchants and regulation impact?

A: Buy-Inventory-Now-Pay-Later is both fintech and payments product; regulation discussions are ongoing but no material impact imminent.