20231028_WIRG_Laporan Informasi dan Fakta Material_31482810_lamp2.pdf

                                            INVESTOR RELEASE PT
                                                 WIR ASIA TBK

                                 RESULTS SUMMARY
              THE NINE-MONTH PERIOD OF 2023
THE COMPANY'S PERFORMANCE GROWTH DURING THE NINE-MONTH
PERIOD OF 2023

PT WIR ASIA Tbk (IDX: “WIRG” or “the Company”), is a leading digital platform ecosystem
development company based on Augmented Reality (AR), Virtual Reality (VR), and Artificial
Intelligence (AI) in Southeast Asia. Through these AR, VR, and AI features, the Company provides
bespoke solution services and digital platform solution services, operating under a Business-to-
Business (B2B) and Business-to-Business-to-Consumer (B2B2C) / Business-to-Consumer (B2C)
business model to its partners from various sectors industries.

Bespoke solution services offer tailored digital solutions and experiences to meet the specific
requests and needs of partners and users, structured on a project basis, generating income
segments in brand development and IT consulting. On the other hand, digital platform solution
services deliver business digitalization solutions that prioritize interactive and immersive
experiences for the Company's partners and customers. This solution generates recurring income
and offers a high level of scalability, encompassing revenue segments such as the sale of various
goods via the platform, the sale of digital products via the platform, transaction commissions via
the platform, as well as promotions and advertising via the platform.




Graph 1(in Billion Rupiah): Financial performance growth for the nine-month period of 2022 and 2023.

In the nine-month period of 2023, the Company achieved a remarkable milestone by recording
consolidated revenue of IDR 1,876.2 billion, signifying a substantial year-on-year increase of 55.4%
(9M-2022: IDR 1,207.6 billion). Additionally, the Company reported EBITDA and net profit figures
of IDR 108.1 billion and IDR 52.1 billion, respectively, representing impressive year-on-year growth
rates of 81.9% (9M-2022: IDR 59.4 billion) and 40.4% (9M-2022: IDR 37.1 billion).


                                                                                                       1

    The Company's outstanding performance in the nine-month period of 2023 can be attributed to
    the successful expansion of its digital platform solution service revenue. This strategic business
    model expansion generated revenue in the segments of goods sales, transaction commissions via
    platforms, and promotions & advertising via platforms, totalling IDR 1,738.6 billion. This amount
    represents a substantial year-on-year increase of 64.5% (9M-2022: IDR 1.056.8 billion).



    OPERATING REVENUES




              Graph 2 (in Billion Rupiah): Revenue composition for the nine-month period of 2022 and 2023.12

    During the nine-month period in 2023, the Company recorded a total year-on-year consolidated
    revenue of IDR 1,876.2 billion, marking a significant growth of 55.4% (9M 2022: IDR 1,207.6 billion).
    Additionally, the company achieved notable growth in revenue from the goods sales & transaction
    via platform and promotion & advertising via platform, with consolidated revenue growing by IDR
    628.3 billion and IDR 53.4 billion respectively, reflecting increases of 65.5% and 54.9% compared
    to the nine-month period in 2022.

    This revenue growth underscores the Company's consistency and success in developing a platform-
    based solution ecosystem with high scalability, facilitated by its subsidiaries, namely, DAV,
    Mindstores, and Minar.




1
 Includes revenue from Software Application Development and Brand and IT Consulting
2
 Includes revenue from Digital Product Sales via Interactive Platform, Goods Sales via Interactive Platform,
Transaction Commission via Interactive Platform

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COST OF REVENUE
In the nine-month period of 2023, the company reported a cost of revenue amounting to IDR
1,681.5 billion, representing a year-on-year increase of 56.4% (9M 2022: IDR 1,075.1 billion). This
increase in the cost of revenue is closely aligned with the growth in revenue during the same period
in 2023, particularly in the goods sales segment and commission transactions via the platform,
which increased by IDR 608.5 billion or 64.6% compared to the previous year.

The segment involving the sale of goods and commission transactions via the platform typically
carries a lower profit margin compared to other revenue segments. However, it has experienced a
substantial increase in its contribution to the Company's total revenue due to rapid growth in this
segment. This shift has influenced the Company's gross profit margin for the nine-month period of
2023, resulting in a slight decrease to 10.4% compared to the previous year's 11.0%. Despite the
decline in the gross profit margin, the increased revenue in the sales of goods and commission
transactions via the platform has also driven higher utilization of the Company's digital platform
solution services, which has the potential to encourage growth in other revenue segments, such as
promotions and advertising via the platform.



OPERATING EXPENSES
The Company's operating expenses for the nine-month period of 2023 increased by 31.2% year-
on-year to reach IDR 119.1 billion (9M 2022: IDR 90.8 billion). This surge in operating expenses was
primarily driven by an increase in salaries, wages, and allowances, which expanded in response to
the addition of employees to support the Company's business growth.

Remarkably, the Company succeeded in elevating its operating profit margin from 3.5% to 4.0%
during the nine-month period of 2023. This accomplishment underscores the Company's
effectiveness in optimizing and managing resources to carry out its operational activities, aligning
perfectly with management's strategic goal of enhancing the Company's profitability.



EBITDA
The Company successfully recorded EBITDA of IDR 108.1 billion during the nine-month period of
2023, marking a significant increase of 81.9% year-on-year (9M 2022: IDR 59.4 billion). This growth
aligns with the Company's substantial increase in consolidated revenue, which reached IDR 1,876.2
billion, reflecting a year-on-year increase of 55.4%. Furthermore, the Company succeeded in
elevating its EBITDA margin during the nine-month period of 2023, from 4.9% to 5.8%.

This notable increase can be attributed to the successful implementation of the Company's strategic
initiatives in developing and optimizing business solutions based on immersive technology, Web 3.0,
and the Metaverse, incorporating features such as Augmented Reality (AR), Virtual Reality (VR), and
Artificial Intelligence (AI), particularly digital platform solutions known for its high scalability, suitable
for implementation and adoption across various industrial sectors.

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 NET INCOME
 The Company's consolidated net profit demonstrated very positive growth, reaching IDR 52.1
 billion, reflecting a remarkable year-on-year increase of 40.4% (9M 2022: IDR 37.1 billion). This
 increase is directly attributed to the continuous and sustainable growth of the Company's
 consolidated revenue throughout the nine-month period of 2023, highlighting a strong
 commitment to maintaining profitability.




 REMARK FROM MICHEL BUDI WIRJATMO, PRESIDENT DIRECTOR OF PT WIR ASIA
 Tbk

 “The Company has effectively maintained a highly positive growth momentum during the nine-
 month period of 2023, achieving revenue of IDR 1,876.2 billion, which represents a 55.4% increase
 from the same period in the previous year. This revenue growth was accompanied by increased
 profits, as the Company recorded EBITDA and net profit figures of IDR 108.1 billion and IDR 52.1
 billion, reflecting respective year-on-year increases of 81.9% and 40.4%. The Company is committed
 to sustaining this positive momentum by developing a “smart society’ solution ecosystem and the
 O2O (Online to Offline) Metaverse world in entering the Web 3.0 era continuously and sustainably.”




 SUMMARY OF FINANCIAL PERFORMANCE
                                                                                 9 (Nine) months period ended September 30
Description                                                                  2023                                       2022
Revenue                                                                            1,876,172,745,263                           1,207,591,029,747
Gross Profit                                                                         194,676,975,745                             132,427,489,935
Operating Income                                                                      75,577,741,303                              41,664,489,435
Net Income for the Year                                                               52,122,943,867                              37,126,807,923
Net Income for the Year attributable to:
Owners of Parent Entity                                                               49,982,390,953                             34,850,633,186
Non-Controlling Interest                                                               2,140,552,914                              2,276,174,737
Total Comprehensive Income                                                            48,929,411,770                             36,997,904,612

Description                                                           As of 30 September 2023                 As of 31 December 2022
 ¹Net Working Capital                                                                  249,744,601,144                          321,511,860,367
 Total Assets                                                                        1,030,911,358,423                          885,150,718,224
 Total Liabilities                                                                     341,603,860,627                          258,704,232,346
 Total Equity                                                                          689,307,497,796                          626,446,485,878
¹Net Working Capital = Total Current Assets - Total Current Liabilities


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