Kaspi.kz JSC Q1 FY2025 earnings call

• Payments: Decent volume growth, TPV up 23%, take rate 1.13%, revenue +16%, net income +21%. • Marketplace: GMV up 20%, revenue +33%, net income +19%, impacted by smartphone registration requirements and macro uncertainty. • e-Grocery: Scaling fast with active consumers near 1 million, GMV and purchases growing. • Deposits: Introduced higher interest products (18% on 3-month, 17% on 6-month deposits). • Euro Bonds: Raised $650 million at 6.250% due 2030. • Rabobank Acquisition: Licensed bank in Turkey to develop fintech products. • $300 million investment in Tokyo for fintech strategy.

Payments: Revenues grew +16%, net income +21%. Marketplace first group grew 20% Y/Y, revenue 33%, net income 19%. Fintech origination volumes grew 17%, revenue 18%, net income 8%. e-Grocery: Active consumers almost 1 million, GMV 64% Y/Y, purchases 66% Y/Y with 3.3 million purchases in Q1. Deposits: 84,000 consumers and ~379 billion Tenge in deposits. Hepsiburada: Suffered net loss of TRY355 million due to political boycotts in March and higher loan loss provisions.

• GMV growth revised to 15%-20% from 25%-30% due to smartphone regulations and macro uncertainty. • TPV outlook unchanged. • TFV growth around 15% at lower end. • Impact of 10% tax on investment revenue and National Bank reserve increase, expected to reduce net income by ~200 bps.

• Temporary impact of smartphone registration requirements on demand. • High interest rate environment affecting fintech. • Political boycotts in Turkey impacting Hepsiburada's GMV and revenue. • Potential 10% tax on investment revenue and National Bank reserve increase affecting net income.

Q: On macro uncertainty in Kazakhstan and Turkey boycotts, what's the situation?

A: David Ferguson discussed macro factors like lower oil prices and currency volatility, and stated no change in Turkey outlook.

Q: Can you elaborate on the Rabobank acquisition and Turkey strategy?

A: Mikheil Lomtadze talked about the approval process for the acquisition and the $300 million investment for fintech innovation in Turkey.

Q: How does the smartphone impact affect guidance?

A: David Ferguson explained smartphone price increase due to registration requirements and expected normalization in the second half.

Q: What about deposit costs and lending?

A: David Ferguson discussed funding cost increase of 100-250 bps annualized and no change in lending pricing.

Q: Any details on the Rabo acquisition and Turkey boycott?

A: David Ferguson addressed acquisition funding from Kaspi's resources and Mikheil Lomtadze mentioned boycott impact is better directed to Hepsiburada management.