PT Sarana Menara Nusantara Tbk

Good afternoon and hello everyone. Welcome to Bahana Securitas' corporate access group call. Thank you for spending your valuable time to join us today. My name is Nicholas. I am the research analyst covering telco, tower, and tech at Bahana Securitas. Today I will be serving as your moderator. Please join me in welcoming today's speaker, Bapak Hatono Tanu Wijaya, Director of PT Sarana Menara Nusantara and Chief of Staff. accompanied by Bapak Adam Givhary, Advisor of PT Sarana Menara Nusantara, and Group Investor Relations, who will present the company's full year 2025 financial result, operational performance, and outlook for 2026. Without further ado, Pak Hartono, Pak Adam, the floor is yours. Please, Pak.

Thank you, Nico. Hi, everyone. Pak Hartono is sitting next to me due to the technical glitch, so we'll be sharing the screen together. It's good that we're next to each other, Pak. Yeah. So Pak Hartono is our director and chief of staff covering the group investor relations. I'm advisor to this role. So let's start with what we have released for full year 2025 audited results. that we announced March, 2026, right before LeBaron break. So I'm gonna share my screen. Let's go through the press release that we prepared, and we're gonna go through the presentation for the full year. And after that, we will wait for more, if Hartone has more remarks on the result, and then we can go to Q&A. So as you can see here, we reach a full year operating revenue of 13.3 trillion, representing a 4.6 trillion increase for 2025 compared to full year 2024. EBITDA reached 10.97 trillion, growing by 2.5%, while net profit after minority interest stood at 3.678 trillion, an increase of 10.3% year-on-year. So we think the result is because we look at what we see, what we have, despite challenging industry and macroeconomic condition, we have to focus on our core strength while improving areas where we can see improvement for better results. We leverage our operational scale. We basically try to get more business by using our scale, you know, on power and fiber, and then maintain strict cost management and drive ongoing efficiencies. As you know, we have a lot of different types of businesses, and we try to combine where we can see synergies between assets that we have That has been the topic of management doing every week, you know, where we can see efficiencies and try to leverage higher utilization on our assets. So we are now given we have 170,000 kilometers of fiber. We have, you know, 35,000 towers. We see that we have one of the largest independent digital telecommunication infrastructure provider. And then we have the most comprehensive range of services. So it allows us to provide solutions for our clients to operate different conditions, including consolidation or mergers that we have seen recently during 2025. So the merger of Excel Asiata and SmartFriend, you know, which opens up significant opportunities. They need us because more than, you know, 50% of the network is on our towers, and they use a lot of our fibers as well. And then we believe, you know, with 5G, further service enhancement will require our involvement with our services and, you know, assets, tower and fiber included. So now we see what we expect for the next 12 months that firstly we see consolidation can strengthen pricing discipline. I know that for the past quarters we've been talking about pricing discipline. We think in the infrastructure space we are among the leaders of pricing discipline. you know, data yield remain, you know, relatively low, but what we provide to the industry is actually something very efficient, you know, compared to where people would, you know, go out of pocket, you know, spend their own capital to build towers and fiber. We believe we provide the value for money when it comes to their network enhancement or network expansion. So we think with competition becoming more healthier, and I think I invite everybody on this call to together monitor this, whether 4G and 5G monetization is improving going forward here. We see several signs of improvement, but hopefully for Indonesians, give that the unique position as the fourth largest country in the world. So we think we should be monetizing this position better for everyone for the telcos for the fiber users for the internet service providers you know and then provide better revenue mix better revenue growth and then better opex allowance that would work well for our ability to provide services and infrastructure second the continued acceleration of economic digitalization uh we are hearing you know because of the war you know, the government is, you know, requiring one day of a week that, you know, ISN, you know, the state apparatus to work from home or from anywhere, right? So that would drive further digitalization, similar to what we saw in COVID, right? Yes. So I think there is an increase of dependencies of people using internet, you know, wherever they are, mobile or wired internet. So data traffic is shown to be growing robustly over the years, like WG Tager. And we expect this momentum to continue. And then the potential rollout of 5G will further support this trend. I think just as a matter of personal observation, before Lebaran, I experienced very bad 5G. But now after coming down, spending holiday for two weeks, I noticed that 5G in Jakarta is getting better. So I think That shows that better penetration of infrastructure in places like Jakarta even would still require more investment and will be there for people who ever need infrastructure in many forms. Number three, Indonesia is still in the early stages of AI and cloud technology, which will drive up, will further increase data traffic and the demand for enhanced connectivity. We expect, you know, further traffic growth, and then there will be requirement for data centers, fiber optic, and power generations. We have E40 energy. We have also several other functions under E40 that Bahadur can surely add some more on later on during this call. And then number four, you know, operators continue to adopt a satellite financial strategies for towers, fiber optic networks, provision of clean and renewable energy. I think we see this trend to continue. I think the requirement, for instance, you know, they require more dividends out of telcos, right? That means, you know, capacity for sale should remain low and whatever existing infrastructure should be used more optimistically, you know, going forward. So that's what we see during 2025 and should hopefully continue until 2026 and future years. So I'm going to move, Pak Hartono, if you want to add something.

Yeah, I think Padang is already well summarized by you. Maybe you can see the highlights and the financial unless there is any discussion.