PT XLSMART Telecom Sejahtera Tbk

Ladies and gentlemen, good afternoon and welcome to Excel Smart's fourth quarter 2035 earnings call. My name is Christopher, head of Inventor Relations, and I will be coordinating today's call. Our presentation and financial results were released this morning and are available on our Inventor Relations website. Today's call will begin with prepared remarks from our management team, followed by a hybrid Q&A session. To answer questions, please type it in the Q&A box along with your full name and company. We will read your questions for management to address. If time permits, we may open your live or live follow-up questions. As a reminder, the session is being recorded. I would like to introduce our speakers for today's call. Mr. Rajiv Sethi, President Director and CEO. Mr. Anthony Susilo, Director and Chief Financial Officer. Mr. David Arcelor-Cortez, Director and Chief Commercial Officer for Consumer. Mr. Feroz Iqbal, Director and Chief Strategy and Home Business Officer. And with that, I will now hand over to Mr. Rajiv to begin with the management highlights.

Thank you Christopher and good afternoon everyone and thank you for joining us. As you know the company was formed in April of last year 2025. So this was the first year for ExitSmart and this quarter closes our first year post merger. And from our point of view, the message is very clear. Execution matters. And we are happy to state that we have delivered. If I speak about the merger, we have successfully completed the 2025 integration milestones. And most importantly, we've done this ahead of the plan. And it translates into operational efficiency, faster decision making, and a more disciplined cost base. Integration risk has materially reduced as we enter into the new year. Secondly, on synergies, we achieved our 2025 synergy targets with OPEC synergies exceeding our initial expectations. This gives us confidence that margin expansion is structural improvement that will continue in 2026 also. The heavy lifting on costs has largely been done. The focus now shifts to sustaining disciplines. Next on growth quality, revenue growth was supported by a fully consolidated subscriber base and more importantly a strong R2 uplift which was around 26% post merger. This was driven by pricing simplification and better customer experience. Choices which were deliberate and that prioritized value over volume and as we said earlier, in this market will want to play a responsible game and will encourage the market players to move into a situation which helps restore health to this industry. And we are also seeing clearer evidence that customers are willing to pay for a more consistent high quality service. Finally on the network, network consolidation has strengthened our performance across key metrics and this was complemented by our recent launch of 5G services in Jakarta, Surabaya, Bali and other cities. In summary, 2025 demonstrates disciplined execution across integration, cost, growth and network. We accept the year with a stronger foundation, reduce complexity and a clearer path to sustainable value creation going forward. If I move to next slide, Building on the highlights which I have just shared, I will go a level deeper into how this merger is being executed and what is being delivered on ground. Starting with network, this is the most complex integration stream and also the one that matters most for long term performance. We are on track to complete full network integration by first half of 2026. Progress so far has been encouraging. with visible improvements in coverage, capacity, and consistency. Importantly, we are managing this carefully, protecting service quality and minimizing operational risk, and both of these remain non-negotiable. On customer experience, we have seen integration benefits are already being felt and enjoyed by the customers. We have improved download speeds by up to 83% across a combined base. This is a real meaningful improvement that supports better engagement and underpins the ARPU uplift that we have seen post-merger. On synergies, execution has been strong. In the first year, we have delivered approximately USD 250 million across synergies, driven by OPEX efficiencies, procurement scale and network rationalizations. This confirms that the merger economics are playing out as expected and in some areas better than what we had initially planned. Finally, on business continuity, throughout the integration process, we have maintained service stability and sustained growth momentum. This disciplined approach has allowed us to transform the business without disrupting day-to-day operations. Overall, the message on this slide reinforces a simple point. Merger is being executed with control and discipline. delivering tangible gains today while we are preparing a solid foundation for the next phase of integration and value creation. If I move to the next slide which is talking about the integration progress and as I mentioned earlier, on the overall execution, the integration milestones were completed ahead of plan. This phase reflects strong governance, clear accountability and tight coordination across multiple teams. More importantly, it reduces execution risk as we move into the next phase of integration. On network, consolidation has progressed materially. We've integrated approximately 34,500 sites by December last year, delivering visible improvements in network performance and customer experience. By the end of Q4 25, around 70% of the sites have been consolidated. And as I said earlier, it puts us in a very strong position to finish most of the integration by H.26. From an organization perspective, the end state structure is now in place. We have harmonized processes and governance across the combined entity, creating clearer decision rights, faster execution and better cost control. In total, around 120 processes have been streamlined and standardized. Finally, on the cost base, we have structurally streamlined our cost base, including vendor consolidation and site optimization. These actions underpin the OPEX synergies already delivered and support sustainable efficiency going forward, rather than just short-term savings. To summarize, 2025 integration has been executed with speed and discipline. The foundation is now largely built. Risks are lower as we move forward and the focus shifts towards optimization and value extraction in a way moving away from integration to driving more value. The last part which I'm going to talk about is on the 5G rollouts. As we said earlier, this merger gave us an opportunity to ready a network for 5G. And we are delivering on that promise. And we believe 5G is a key pillar of our growth and differentiation strategy. We want to be leaders in 5G, simply put. Our focus is not just on rolling out 5G faster, but on delivering a clear, consistent and commercially meaningful 5G experience. Today we offer what we believe is the first true 5G experience in Indonesia. This is built on three core propositions. First, blanket city coverage. And this I believe is rare in many parts of the world. It's not only your home is covered or your workplace is covered. Wherever you go in a city, you will find 5G. Secondly, an auto 5G experience where customers with 5G devices can seamlessly access speeds up to 250 Mbps without complexity. There is no special plan for availing 5G benefits. And thirdly, a dedicated 5G spectrum which delivers more consistent speeds and better user quality, especially in high usage area. In terms of coverage, our 5G network is now live around 33 cities and continues to expand. Importantly, the experience is designed to be citywide and consistent with capacity strengthened where demand is highest. This approach ensures that network investment is closely aligned with actual usage and monetization potential. Equally important is brand clarity, where we have positioned 5G clearly across our portfolio of three brands. Four brands, if I may say. Excel prepaid, the post-paid brand prioritized, access, and smart pay. Each brand plays a distinct role avoiding overlap while maximizing reach. In summary, our 5G strategy is deliberate and focused, combining disciplined rollout, consistent experience, and clear brand positioning to support sustainable growth and long-term returns. I thought that was my last slide, but there's one more which is on the network side, and I'm happy to give you an update on that. By end of last year, our total BTS count reached more than 225,000, which is a 36% increase year-on-year. This reflects the post-merger consolidation of our network and continued investment in capacity, particularly in 5G. As expected, legacy technologies continue to decline as we optimize the network toward more efficient and higher performance platforms. On 5G, we continue to expand our footprint in a disciplined and targeted manner. As I said earlier, we launched our services and we expanded further in January, 2026. In addition to the expansion, we're also seeing external validation of our network quality. And I'm happy to announce that XLSmart was awarded the UCLA Speedtest Award for fastest 5G network in Indonesia, reinforcing our commitment to delivering a globally benchmarked high performance connectivity. This reflects the progress we have made in network design spectrum strategy, and execution quality. Overall, our network strategy is delivering on three fronts, scale, performance, and resilience, providing a strong foundation to support growth, accelerate 5G monetization, and maintain customer trust going forward. I'll now hand over to our CFO, Par Anthony, to walk us through the financial results.

Thank you, Parajit. Good afternoon, everyone. Let me now present you our key operating metrics, which reflect a clear shift towards quality growth. We know that it is quality growth because of the start-up price adjustment and also the broader industry pick-up rate. So let's start with the subscribers. Our mobile subscriber base become 33 million in Q4 2025. representing an 8% quarter-on-quarter decline. This decline was an intentional outcome, reflecting a tighter acquisition discipline, as well as a sharper focus on monetization and high-quality users. Most importantly, on a year-on-year basis, his consolidated base remains up by 24%, reflecting the post-merger scale of the business. If we look at the ARPU, this is where the benefits of our strategy are most visible. Blended ARPU increased by 15% queue-on-queue to become Rp44,800 in Q4 2025. This is mainly driven by the improvement across both in the prepaid as well as postpaid segments. And this reflects a pricing normalization, better customer mix, and confirms that we are capturing more value per users. In terms of the usage data traffic, it continues to grow despite of the lower subscriber base. Traffic reached almost 4,000 petabytes in Q4 2025, an increase of 47% year on year and 2% quarter on quarter. This growth in consumption per customer reinforces the positive relationship between network quality the engagement, as well as the monetization. So overall, these trends demonstrate that our strategy is working well. Our subscriber numbers have normalized, becoming better customer quality, reset intensity, and are to continue to improve. This positioning the business to be more sustainable and more profitable going forward basis.