Jakarta, Indonesia, February 16, 2023 – PT GoTo Gojek Tokopedia Tbk (IDX: GOTO, “GoTo Group” or the “Company”), the largest digital ecosystem in Indonesia, today announced that it has further accelerated its profitability timelines. The Company expects adjusted EBITDA¹ to become positive within the fourth quarter of 2023. Group Contribution Margin² is set to become positive within the first quarter of 2023, accelerated by four quarters compared to previous guidance. The new profitability timeline, which will bring the company very close to positive operating cash flow, comes as a result of GoTo’s strategic plan based on revenue optimization, cost management and ecosystem product growth.

The news was announced today by Andre Soelistyo, GoTo Group CEO, during a townhall at which the company shared its accelerated profitability strategy and employees were informed that they will return to the office to enable closer collaboration.

Andre said: “The success of our business has long been understood in terms of our rapid pace of growth, driven by our ability to solve problems at scale, while providing value to consumers, merchants, drivers and society as a whole. However, having achieved such scale, we must now prioritize sustainable profitability over rapid growth, while continuing the product innovation that will ensure long term value creation for GoTo and its stakeholders.

“Over the past year, we have been implementing a plan designed to accelerate our profitability, based on revenue optimization, cost management, as well as ecosystem product growth. As a result of the ongoing successful implementation of this plan, we expect to turn adjusted EBITDA positive within the fourth quarter of 2023. We have the right team in place, and sufficient funds to execute on our plan, as we focus relentlessly on building Indonesia's most impactful technology ecosystem that creates value for all.”

Jacky Lo, GoTo Group CFO said: “We have been making great progress. Contribution margin in the fourth quarter of 2022 has exceeded guidance, while GTV and gross revenue were both well within our guidance range, demonstrating our ability to grow healthily while progressing rapidly towards profitability. We are conducting regular reviews to ensure optimum implementation of these strategies with a focus on building our core businesses, while reviewing divestment opportunities for non-core assets, as we center our efforts on reaching our profitability objectives by the end of this year.”

GoTo’s strategic plan, implementation of which began in early 2022, is based on:

• Revenue optimization - covers commission structure improvement opportunities in on-demand services and e-commerce including those announced in December 2022 and January 2023. Also covers the development of new, higher margin revenue lines such as advertising, premium transport services as well as the ongoing introduction of new lending products.
• Cost management - an ongoing, top to bottom analysis of every line item to ensure every cost provides the necessary return on investment that supports the company’s profitability timeline. This involves the optimization of incentive spending through better targeting, common rewards and more focused marketing, as well as a broad range of additional cost saving initiatives. Such initiatives include the development of shared technology infrastructure, middle layer applications and tools, optimization of the cost of operations and further assessment of organizational effectiveness and efficiency.
• Ecosystem product growth - GoTo’s competitive advantage lies in its unrivaled product ecosystem across on-demand services, e-commerce and financial technology. The company will focus on further developing the foundational products that will leverage this advantage, enabling it to solve more problems for customers leading to higher quality growth over the long term.

Operational Highlights for FY 2022 and 4Q 2022³:

Select highlights from the Company’s fourth quarter 2022 performance are also being released today ahead of official 4Q 2022 earnings:

• 4Q 2022
• Group GTV⁴ - GoTo Group remained resilient in 4Q 2022 with Group GTV growing by 18% year-on-year to IDR 162 Tn. On a quarter-on-quarter basis, GTV growth for 4Q 2022 was within the guidance range provided during 3Q 2022 earnings, with all segments seeing positive growth.
• Gross revenue⁵ - GoTo Group has achieved 4Q 2022 Gross Revenue in the upper range of the provided guidance.
• Contribution margin - The Group’s consistent focus on the path to profitability has enabled Group Contribution Margin as a percentage of GTV for 4Q 2022 to exceed the guidance provided during 3Q 2022 earnings.
• FY 2022
• Group GTV - For the full year, the Company has shown solid growth in FY 2022. Overall Group GTV increased by 33% year-on-year on a proforma basis to IDR 613 Tn, meeting the FY 2022 guidance.
• Gross Revenue - Overall Group Gross Revenue for FY 2022 was in the upper range of the provided guidance.
• Contribution margin - FY 2022 Contribution Margin exceeded the guidance range.

Full details of GoTo Group’s performance in the fourth quarter as well as full year 2022, will be disclosed on the Company’s 4Q and FY 2022 earnings call, which will take place in March.

• End -

About GoTo Group

PT GoTo Gojek Tokopedia Tbk (GoTo Group) is the largest digital ecosystem in Indonesia. GoTo’s mission is to “empower progress” by offering technology infrastructure and solutions that help everyone to access and thrive in the digital economy. The GoTo ecosystem consists of on-demand services (mobility, food delivery, and logistics), e-commerce (third party marketplaces + official stores, instant commerce, interactive commerce, and rural commerce), and financial technology (payments, financial services, and technology solutions for merchants) through the Gojek, Tokopedia, and GoTo Financial platforms.

Notes

1 GoTo Group calculates the adjusted EBITDA, a non-IFAS financial measure, beginning with loss before income tax and adjusting for (i) depreciation and amortization expenses; (ii) finance income; (iii) interest expenses; (iv) loss on impairment of assets of disposal group classified as held for sale; (v) (reversal)/loss on impairment of investment in associates; (vi) loss on impairment of goodwill; (vii) fair value adjustment of financial instruments; (viii) loss on impairment of intangible and fixed assets; (ix) share-based compensation costs (including for the Gotong Royong Program); and (x) non-recurring items.

2 GoTo Group calculates the Contribution Margin, a non-IFAS measure, beginning with net revenues and deducting total cost of revenues, a portion of sales and marketing expenses relating to the promotional excess and product marketing and others consists of mainly withholding taxes related to sales and marketing expenses and other insignificant expenses.

3 Comparisons are made against the pro forma financial information for the year ended December 31, 2021, which were derived from the audited consolidated historical financial information of GoTo Group and Tokopedia and certain adjustments and assumptions have been made regarding our Group after giving effect to the acquisition of Tokopedia, had Tokopedia been consolidated since 1 January 2021. Comparisons are made against the pro forma operating metrics for the year ended December 31, 2021, which were derived from the historical operating metrics of GoTo Group and Tokopedia and certain adjustments and assumptions have been made regarding our Group after giving effect to the acquisition of Tokopedia, had Tokopedia been consolidated since 1 January 2021. Such numbers and figures are presented for illustrative purposes only and may not be an indication of what the Company's financial position or results of operations would have been or for any future periods. Please refer to “Unaudited and Pro Forma Financial Information”.

4 GTV means gross transaction value, an operating measure representing.

1. the sum of the time value of the transactions from on-demand services.
2. the sum of the value of the products and services recorded on our e-commerce segment.
3. the sum of the total payments volume, or TPV processed through our platform of financial technology services.
4. and excluding amounts from intercompany transactions between entities within the Company that were eliminated upon consolidation.

5 Gross revenue represents the total Rupiah value attributable to GoTo Group from each transaction, without any adjustments for incentives paid to driver-partners and merchant partners or promotions to end-users, over the period of measurement. For a reconciliation of net revenue to gross revenue, please refer to the section “Non-IFAS Financial Measures.”

Forward-Looking Statements

This document may contain forward-looking information or forward-looking statements (collectively, “forward-looking information”). All information contained in this communication that is not clearly historical in nature or that necessarily depends on future or subsequent events is forward-looking information prepared as of the date hereof and is based upon the opinions and estimates of management and the information available to management as of the date hereof. In some cases, forward-looking information can be identified by the use of forward-looking terminology such as "expect", "likely", "may", "will", "should", "intend", "anticipate", " potential", "proposed", "estimate" and other similar words, expressions and phrases, performance or achievements to be materially different from future results, performance or achievements expressed or implied by such forward-looking information. Any estimates, investment strategies or views expressed in this document are based upon current market conditions, and/or data and information provided by unaffiliated third parties, and are subject to change without notice. To the extent any information in this document was obtained from third party sources, the Company has not independently verified that information, and there is a risk that the assumptions made and conclusions drawn by the Company based on such information are not accurate. Except as required by law, the Company disclaims any obligation to update or revise any forward-looking information, whether as a result of new information, events or otherwise. Readers are cautioned not to put undue reliance on this forward-looking information.

Non-IFAS Financial Measures

To supplement GoTo Group's consolidated financial statements, which are prepared and presented in accordance with statements of financial accounting standards in Indonesia (IFAS), GoTo Group uses the following non-IFAS financial measures including gross revenues, contribution margin and adjusted EBITDA, to understand and evaluate GoTo Group's core operating performance. However, the definitions of GoTo Group's non-IFAS financial measures may be different from those used by other companies, and therefore, may not be comparable. Furthermore, these non-IFAS financial measures have certain limitations in that they do not include the impact of certain expenses that are reflected in GoTo Group's consolidated financial statements that are necessary to run GoTo Group's business. Thus, these non-IFAS financial measures should be considered in addition to, not as substitutes for, or in isolation from, measures prepared in accordance with IFAS.

These non-IFAS measurements are not intended to replace the presentation of the GoTo Group's financial results in accordance with IFAS. Rather, GoTo Group believes that the presentation of Adjusted EBITDA provides additional information to investors to facilitate the comparison of past and present results, excluding those items that GoTo Group does not believe are indicative of GoTo Group's ongoing operations due to their size and/or nature . In addition, GoTo Group also presents the Contribution Margin that may provide additional information to investors in relation to the results excluding the non-variable expenses and other income/ expenses. Contribution margin and adjusted EBITDA presented herein may not be comparable to similarly entitled measures presented by other companies, who may use and define this measure differently. Accordingly, you should not compare this non-IFAS measure to those presented by other companies.

Unaudited and Pro Forma Financial Information

GoTo Group furnished the pro forma consolidated statement of profit or loss and other comprehensive income as if Tokopedia had been consolidated by GoTo for all the periods presented in this document. The pro forma consolidated statement of profit or loss and other comprehensive income have been prepared based on the Company’s combined historical financial information, excluding the amount of historical financial information recognised as intercompany elimination item. Pro forma consolidated statement of profit or loss and other comprehensive income is not intended to be a complete presentation of the GoTo Group’s financial performance or results of operations had the transactions been concluded as of and for the periods indicated. In addition, these pro forma information are provided for illustrative and informational purposes only and are not necessarily indicative of the GoTo Group’s future results of operations or financial condition as an independent, publicly traded company.

The pro forma financial information included in this document has been prepared by and is the responsibility of management. This pro forma information has not been audited, reviewed, examined, or applied any procedures with respect to the pro forma financial information, included in this document . Accordingly, there are no opinions or any other form of assurance expressed with respect to any and all pro forma financial information presented in this document.

The pro forma financial information included in this document (i) is presented based on currently available information and estimates and assumptions that the GoTo Group’s management believes are reasonable as of the issuance date of this document; (ii) is intended for informational purposes only; and (iii) does not reflect all decisions that are undertaken by the GoTo Group after the acquisition.

While the pro forma financial information is helpful in illustrating the financial characteristics of the consolidated companies, it is not intended to illustrate how the consolidated companies would have actually performed if the acquisition of Tokopedia in fact occurred on the date of acquisition or to project the results of operations or financial position for any future date or period.

In addition, GoTo Group also furnished the result for the three months ended September 30, 2022 and December 31, 2022 and 2021 in this document. The information for September 30, 2022 is extracted from the consolidated financial statements of the Company as of and for the nine months ended September 30, 2022 (with the period of nine months ended presented as comparative) that have not been reviewed or audited. The consolidated financial statements as of September 30, 2022 and for the nine months ended September 30 2022 and 2021, have been prepared by and are the responsibility of management. This financial information has not been audited, reviewed, examined, or applied any procedures with respect to the consolidated financial information for the three months ended September 30, 2022 and December 31, 2022 and 2021, included in this document. Accordingly, there are no opinions or any other form of assurance expressed with respect to any and all interim and all information for the period of three months ended on September 30, 2022 and December 31, 2022 and 2021 financial information and the pro forma for the year ended December 31, 2021 presented in this document.

Operating Metrics

GTV or Gross Transaction Value means gross transaction value, an operating measure representing the sum of (i) the value of on-demand services transactions; (ii) the value of e-commerce transactions for products and services; and (iii) the total payments volume processed through our financial technology services, excluding any inter-company transactions.

Contacts:

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