Joint Stock Company Kaspi.kz

Hello and welcome everyone to the CASBKZ first quarter 2025 financial results. If you would like to ask a question and you have joined the call via Zoom, please press the right hand icon on your screen. If you've joined us on the phone, please press star one on your telephone keypad. I will now hand you over to David Ferguson, Head of Investor Relations at CASBKZ to begin. David, please go ahead.

Great. Thank you, Maxine. Good afternoon. Good morning to everyone. Thanks a lot for joining us for our first quarter. 2025 financial results. I'm David Ferguson. I'm joined, as usual, by Michal Luntata, our CEO and co-founder, Yuri Dodenko, and Tengiz Mesici, our deputy CFOs, deputy CEOs, sorry. So, Michal will take you through the strategic update. I'll run you through the operational performance in the first quarter. I'll do that quickly. and then spend a bit more time on the guidance for the remainder of the year. There's a couple of moving parts to discuss, and then we'll open up the call for Q&A. So on that note, I'll hand it over to Mikael. Mikael, over to you. Thank you.

Hello, everyone. So let's just go through our first few performance. In general, we had a good first few. itself, it's performing at the levels which we expected within our expectations. The payments, you know, continue the strong growth. Revenue is plus 16%. I think I'm 21%. The marketplace in the first group grew 20% year over year, and the revenue 33%, and I think I'm 19%. and the FinTech origination volumes grew 17%, 18% revenue, 8% net income. The monthly transactions have been strong, and we continue to have a very engaged consumer base, and the revenue plus 21% net income plus 16%. The overall, the company's underlying performance is probably within our expectations. It could have been better on the GNV side. There was requirements to register smartphones, which was introduced in Kazakhstan, and that had a quite significant, you know, temporary impact on the demand for smartphones. And then on the Fintech side, you know, we see, the continuous high interest rate environment, which, again, will continue probably through this year. And we are here also introducing higher interest new deposit products, which I will talk a bit as well. So next slide, please. So the eGrossery, this is the business which we have started one of, you know, the fastest growing business. In our e-commerce, we continue scaling fast and expect to continue strong growth through the year. The active consumers reached almost 1 million. The GNV 64% up year-over-year, and then the purchases are 66% up year-over-year with 3.3 million purchases in the first few. As you know, we are operating in the three cities, three largest cities now, and we are planning to enter another two cities. So, the team continues to execute on the grocery, and you see the average ticket is very good, stable, and yeah, we just continue scaling because the country would simultaneously, as you know, is very good at continuously from an operational side, but also scale. And we are entering the new cities to support the growth, and we expect eGrocery to continue scaling fast through the year. New term deposits that we have launched for consumers. Those deposits are aiming at a higher interest rate. Our interest rate environment, has been, you know, basically due to all sorts of factors which have nothing to do with FASB itself. We are in the high interest environment, and there is a demand for deposits which, on the one hand, have high interest. On the other hand, those deposits are for sort of savings, where you can top-up deposit basically any time, but the term of deposit is actually saved through the three or six months. The deposits itself have been very successful on the market. As you can see, we went from basically nothing 84,000 consumers and almost 379 billion intenge of those deposits. So they're growing fast. There is a demand for those deposits. And therefore, this product has been quite successful. And we will be, you know, as you know, the strategy we have always had historically is those are the best consumers that are saving with you. and in the future, they're making purchases through all our other services, and therefore, investing into the acquiring the consumer deposits and the consumers with deposits have been part of our historical strategy always. Again, in the future, interest rates will go down, and therefore, there is additional opportunity for the, you know, for profitability. At this stage, we are in the high-interest environment. Therefore, we're taking advantage of this as well. We have been going through the different deposit terms upgrades. So this is just a bit of a timeline for you guys to understand. So for example, we did reduce the deposit in February of 24 from 14 to 15%. But then in 25, we do have the high interest environment. So we have introduced six month maturity deposit at 17%. Then we have increased the rate on all our current deposits from 14 to 15%. And then we introduced the pre-mortem maturity deposit at 18% interest rate. The way that we work with our consumers, for example, when we introduce, when we increase the rate of the existing deposit from 14 to 15%, we reprice our entire portfolio. That's the way our products work, and we have been doing this consistently for, you know, as long as we had basically the product. So that's something you should keep in mind. As soon as we increase the interest rate, we reprice our entire portfolio. So when we went from 14% to 15%, we therefore repriced – the existing portfolio of our custody deposit. And now, the fastest growing deposits are the ones which offer the higher interest rate of 18 and 17%. A couple of other things. We have raised Eurobonds. This is our first Eurobond, which we have successfully raised 650 million at 6.250%, which is due in 2030. Again, this was for us an opportunity to build a track record with fixed income investors, and this is the first Eurobond we have done. And, yeah, considering our strategy for international expansion and investments in Turkey more specifically, you know, it's good to be in a position of the financial strength. That's good to build a track record, but also specifically that transaction was successful, you know, Eurobond fundraising. We have also signed the agreement to acquire Rabobank, and this is a fully licensed bank, which doesn't really have any customers and doesn't have branch network. And this enables us to, you know, continue developing a FinTech product in Turkey. And also, our initial plan is that, you know, we'll invest roughly around $300 million in 2025 to fund our FinTech strategy in Turkey. So, Derrick, I'm back to you just to go through the platforms.