Based on the information here: https://www.kobo.com/help...
I believe the answer is yes, it does.

However, I think e-readers are not a great for viewing PDF files. PDF uses a fixed page size, and since the screen of the e-reader is quite small, zooming and panning is often necessary to be able to read the text. On the Kobo, as well as other e-readers using an e-ink display, this is quite slow and cumbersome. EPUB and HTML files, by contrast, are reflowed on the device to fit the page using an appropriate font size, which makes them much easier to read.

Thanks for info about PDF; I will check as I ordered yesterday the kobo ereader. I have only PDF that I want to read. I will test how it works, otherwise I will try to convert to html, using for example pdftohtml.net