Good afternoon, ladies and gentlemen. Welcome to XL Axiata's earnings call for full year 2022 financial year, ended 31st December 2022. My name is Christy. I am the Investor Relations for XL Axiata, and I will be your coordinator today. During the presentation, all participants are in a listen-only mode. After the speakers' remarks, there will be a question and answer session. The Q&A session will be hybrid mode to ensure that we can accommodate everyone. To ask questions, please type it in the Q&A box with your full name and company name, or we will not be able to address you properly. If we have time, we will circle back for follow-up questions. As a reminder, this session is being recorded for replay purposes. With me on the call today, Ibu Dian, our CEO, Pak Budi, our CFO, Pak David, our CCO for consumer, and Pak Abhijit, our CCO for enterprise and home. Ibu Dian will share the highlights for full year 2022, which will then be followed by the Q&A session. I will hand over the call to Ibu Dian. Ibu Dian, the floor is yours. Thank you, Christy. Good afternoon, everyone. Thank you for attending today's earnings call. 2022 was a great year for XL with our pioneering and consistent strategy execution of Digital Transformation and convergence. We have outperformed the industry despite the challenges that occurred both globally and domestically. Let's see our full year 2022 key highlights. Our revenue grew by 9% due to continued product innovation that are supported by our network excellence. Top-line growth positively impacts our EBITDA, which grew by 7% year-on-year with margin recorded at 49%. XL Axiata also booked stable CapEx growth. Our network excellence initiatives have been very fruitful as we are closing 2022 with a win in four categories based on December 2022 Opensignal's Mobile Network Experience report. For the second time in a row, we are the winner of the Download Speed Experience award with overall download speed averaging at 20.8 Mbps or 11% increase compared to July 2022. On top of that, we also obtained first rank on Video Experience, Games Experience, and also Voice App Experience. XL SATU, as our convergence package, continues its strong uptrend trajectory with 37% of our FTTH customers subscribed to it, a five percentage point increase compared to 32% in third quarter 2022. This is a result of digital-driven operations through our data analytics that enable us to do effective cross-sell and up-sell. Our Digital Transformation 2.0 strategy on mobile also evolved the experience on our own apps, which are myXL and AXISnet. Both apps have delivered a very strong result in 2022, which by end of December 2022, we recorded more than 25 million monthly active subscribers. I would also like to thank our stakeholders for the support and trust on our fundraising initiatives. Last year, we have successfully raised around IDR 8 trillion in funds, IDR 3 trillion through bonds and Sukuk in September, with very competitive pricing, and around IDR 5 trillion through rights issue. The funds obtain strengthen our balance sheet, allowing us to retain the AAA ratings and investment grade we currently have, and of course, balancing our debt profile to build up for potential interest rate increases in the future. Moving on to the next slide. This is on 2022 overview and also 2023 outlook. Throughout 2022, Indonesia telco industry remained rational with competition tracking slightly higher in the fourth quarter. This due to seasonal competition that happened in some areas, which we expect to subside in the coming quarters. Data consumption remains strong as we observe higher data package utilization from our subscribers, mainly driven by video streaming, a trend that will continue in 2023. We also observed all MNOs now shifting gears toward convergence, following the steps of our convergence proposition with adapting for lighter asset business model. As I've mentioned earlier, our investment in network infrastructure, digitalization, and spectrum usage optimization have improved our customer experience immensely. In 2022, our 4G BTS grew by 19%, with 44% of our sites are now fiberized. Our spectrum efficiency initiatives continue to be enhanced using NFVI technology to remove the disadvantage of relatively narrower spectrum bandwidth. On top of that, our end-to-end digital transformation enhanced organizational agility to adapt and cater to market needs and industry evolution. In 2023, opportunities remain promising in telco industry, not only in mobile, but especially in fixed broadband market, both for consumers and enterprise segments, due to its relatively lower market penetration. Not only smartphones that are connected to the internet at home, but a wide range of new devices, enabling the revolution of structural digital lifestyle. This is why our convergence offering is the right strategy to address the needs. Going into the new year, same risks continue to persist, such as weaker consumption due to macroeconomic pressures, risk of aggressive competition to return, as well as prolonged geopolitical issue impact on supply chain. Considering both opportunities and risk, we believe that Indonesia telco industry will grow higher compared to 2022 growth. Before we discuss numbers, allow me to provide you with more details on our key growth strategy that give us the win in 2022 and hopefully going forward. As well as what many of our investors have inquired, our convergence strategy and also goal for 2020 to be elaborated in this presentation. Next slide, please. Personalization has been a foundation of our growth. One of the keys to our growth has been personalization, which have pushed to the next level. We have already profiled more than 10,000 persona segments to whom we offer tailored propositions. We have already introduced AI-driven dynamic pricing to all our digital channels. With dynamic pricing, we are able to offer each customer a different price to the portfolio with the objective of maximizing the ARPU. Another big step has been the implementation of closed-loop feedback, where we have been able to capture more than 3 million customer feedbacks that help us improve the customer journeys. As a result, we have been able to multiply by 4 the revenue from personalization in digital channels and multiply by 4.5 the satisfaction of those customers. Next slide, please. This year, we will double down on our convergence strategy by adding more features and boosting our family proposition to provide an even more comprehensive ecosystem that is relevant to our customers, such as smart devices, ability to build your own XL packages to better suit their needs, flexibility to add any XL numbers to their convergence package, and eSIM that is soon to be launched by first half 2023. We will leverage on our converge and omnichannel touchpoints, unifying our distribution, taking advantage of over 130,000 touchpoints distribution synergies. On top of that, single family ID will make XL SATU in the best position to capture the opportunity in convergence. Next slide, please. To seize 2023 opportunity with convergence, our early moves towards convergence have helped generate strong momentum for XL SATU. This year, we will fuel the growth even larger by scaling up our XL Home. We aim to close 2023 with 450,000 Home connect and 150,000 converge subscribers. Next slide. This slide shows our key metrics for full year 2022, which I will not go through one by one, but the only thing that I want to highlight, that we closed the year with 57.5 million happy customers that support us, thus enabling XL to retain the ARPU of IDR 40,000, indicating that our additional subscribers are value accretive despite impact from fuel price hike and competitions. Next slide. We've been focusing on customer experience, and we will still focusing in customer experience going forward. Our 4G BTS count is at 91,600, a 19% growth year-on-year. 3G spectrum refarming is completed with 98% over 51,000 3G BTS has been shut down. Our network investment and strategy has led to better network experience, hence higher usage as evidenced by the 22% year-on-year increase in total traffic for full year 2022. As mentioned earlier during the presentation, our own apps recorded a 62% year-on-year increase in monthly average users with more than 25 million subs are on the platforms. More users on our own apps will sharpen our prediction on upcoming trends and customers' behaviors, enabling us to provide the right offers to the right customers at the right time. In the end, it will improve the offering acceptance rate and increasing ARPU. Our fiberized site as of December 2022, it is at 54%, an increase of 15 percentage point year-on-year. Pairing this with our spectrum refarming, a new technology adoption has put XL network ahead of the curve. Ultimately, the increased investment we have put in the past two years has helped making our network better and optimize our capital intensity. Finally, our guidance for the year. Next slide, please. We aim to grow our revenue by mid to high single digit or at least align or better than industry. For EBITDA, margin guidance at approximately 49%. Our CapEx guidance this year will be at IDR 8 trillion, with 70% of CapEx allocated to strengthen network quality as well as to increase digitalization. This excludes potential spectrum auction from the government. With that, I conclude my opening remarks. Back to you, Christy. Thank you, Ibu Dian, for the very thorough walkthrough of XL Axiata performance and strategy. Ladies and gentlemen, we will now proceed to the Q&A session. As a reminder, the Q&A session will be hybrid mode. To ask a question, you can type it in the Q&A box. Please ensure to use your full name and company name. After your question is answered, if you'd like further clarification, kindly use the raise hand button and we will call your name for you to proceed to unmute your mic. The first question come from Arthur Pineda of Citi. Were there any one-off bookings in fourth quarter 2022? What accounted for the sudden rise in financing expenses, and are any of these factor are still relevant to January? The other question will be on the D&A. What accounted for the QoQ jump in D&A expenses? Will it be possible for us to break out the growth momentum between mobile and fixed services for full year 2022 and fourth quarter 2023? Pak Budi, would you like to take on this question? Yeah. Arthur, thanks for the questions. There are two parts of this question. I will answer the first one related to the P&L. The other one will be answered by David related to the momentum of growth. Yeah. On the P&L impact, throughout the years, we've been working on rental negotiation with our towers provider partners. As you know, within that rental that we pay roughly around IDR 10 million per month consists of two. One portion is related to the maintenance, operational maintenance, the other one related to the rental itself. For the O&M, operational maintenance, the fee is actually subject to escalation. Every year, that fee will be adjusted up. We've been negotiating with our tower company to reduce overall TCO, overall total cost of the agreement, by reducing this O&M portion. Towards the DN in Q4, we got the deal closed with our tower provider, hence they agreed to reduce that O&M portion that's subject to escalation. As a result of that, there's a one-time adjustment related to IFRS 16 rebook, impacting our rental and reduction on rental. On the flip side, we got slightly higher on interest, financing cost, and also depreciations. That's what the one-time that happening in Q4. The total year, will it happen again? The answer is no, because it's only one-time, but the new structure will be applied 2030 onwards. That's the answer for the first questions. David, you want to answer the second? Yeah. Regarding the growth momentum, as you can see in the numbers, right? 2022 has been a very good year for us. The growth momentum is there. Quarter four, usually because of seasonality and because of some more competitive pressure, it's usually for us not the best of the quarters. Still we see internally very good growth drivers like the gigabytes used per subscriber, the market share that we are gaining. We see very positive growth momentum even in quarter four, we are positive also for 2023. Thank you, Pak Budi and Pak David. Next, there are question from Nicholas Santoso of Verdant. Is there a reason for the lower postpaid ARPU? Is it because of low-end postpaid users from Telkom migrating to XL? Second, why is the EBITDA margin guidance kept at 49? Will there be any room for this to improve to low 50s? I believe the first question will be addressed by Pak David. Yeah. Yeah. Correct. Regarding the lower postpaid ARPU, it's pushed by the regionalization of the offer. We are extending the postpaid offer of Prioritas to ex-Java, and to 13 tier 2 cities. When we do that, we usually go with regional pricing, and the ARPU that we are obtaining from them, it's a little bit lower. Overall, the lower ARPU is because we are expanding to tier 2 cities or and ex-Java cities. We still see a strong ARPU in Java in the tier 1 cities. Yeah. Let me take the second part of the questions. Thanks for the questions, Nicholas. On the EBITDA, we currently, based on the data, based on the estimate that we have, we are looking at 49%. As you know, however, we continue exploring any other opportunities. As you know, we implementing our operational excellence, and we very, basically always look for opportunities wherever is possible. Right now, we still kept our 49% as our guidance. Whether there's a room to be better than that, there's always a room. Right now, still, we're looking at 49% now. Nicholas, yeah. Thanks, Pak David. Thanks, Pak Budi. We actually have one follow-up question from Arthur Pineda. Arthur, you may unmute your mic. Hi, can you hear me? Yes, Arthur. Loud and clear. Hi. Yeah, just to clarify, can we get a quantification on the D&A and financing impact linked to this contract renegotiation? Just a second question is with regard to the pricing strategy. We've seen both Indosat and Telkomsel raise pricing in January and February. Has XL done the same so far? Thank you. Okay. Arthur, on the quantification of amount that hitting the P&L is somewhere around IDR 80 billion-IDR 100 billion, related to this IFRS adjustment that we book in 4Q. That's the amount. A one time, yeah, Arthur. Understood. There's no accelerated depreciation, is that correct? Yeah. There's no accelerated depreciation. It's more on the like a one time true-up on the depreciation. That one somewhere around IDR 200 billion-IDR 250 billion, the amount for depreciation related to the ROU for this IFRS 16. Understood. Okay. Thank you. Yeah. Regarding the pricing strategy, it's true. We have seen that both IOH and Telkomsel have increased their prices for the SIM cards, so the SP prices or the SP-related product prices. We have seen that they have increased those prices, probably in order to stop the use and throw behavior. We have done the same. Our prices of the SPs have been also increased, and our strategy is simple. Any product that goes with an SP or with a SIM card needs to be always, let's call it, worse than the equivalent digital or voucher one, so that the use and throw behavior is not incentivized. We have increased the prices of the SIM cards, and we have made the portfolio in such a way that it will always be better for a customer to buy a digital voucher or a packet rather than use and throw the same SIM card. Having said this, we are also going to increase, because this is just a small part of the revenue, right? The SP or the acquisition product is a very small part of the revenue. We are committed to keep growing, increasing prices, and we are going to do so in the coming weeks, not for the SP, which we have already done, but for the whole portfolio. Got it. Thank you very much. Thanks, Arthur. Thanks, Pak David. Thanks, Pak Budi. Next question is from Aqil Triyadi of Panin Sekuritas. What do you think about the 700 MHz frequency auction that will happen in first half of 2023? I think this question is addressed to Ibu Dian. Thank you, Aqil Triyadi, for the question. Last year, the government actually stated that they would conduct the auction for 700 first quarter 2023. Towards the end of 2022, actually, they revised the statement saying that the 700 would be auction in 2023. They didn't specify whether it will be in quarter 1, 2, or actually later of this year. With that revision of statement, we think that it will be in the second half of 2023, the reason is because we think that there are challenges in actually moving the analog TV to digital TV because the government needs to provide the STB for those who doesn't have digital television. Thank you, Ibu Dian. Next question is coming from Choong Chen Foong of CIMB. You mentioned big ticket items are already spent. Which are these items, can you quantify how much was charged in 2022? Will this be recurring in full year 2023, or these are not recurring? Chen Foong, thanks for the questions. Related to the big ticket items, as you know, one of the big 1 last year was the 3G spectrum refarming. That's a huge project that we took. A brave decision. Once the government decided, we accelerated quickly in Q1, Q2 last year, then finalized in Q4. As we spent a lot of our debt to ensure we get the optimum refarming of the spectrum result. As you know, we are now number 1 in terms of network quality as result of leveraging that, refarming that data spectrum. That's one of the ticket item. The other things that we did was the digitalization. That's another heavy lifting that we did last year. That, buddy, won't stop, we will continue on this digitalization journey. Hope that answer, Chen Foong. Thank you, Pak Budi. A follow-up question from Choong Chen Foong is why XL guided for flat EBITDA margin while we have mid to high single-digit revenue growth and big ticket items are already spent? Yeah, I think we answered that already, that we still keep our guidance at 49%, Chen Foong. As you know, we are very opportunistic, right? Whenever possible, our operational excellence is always there to become our main guideline. Whenever we make decision, whatever opportunity is there, we always try to strike and then get a better margin position. For now, I'm going to still keep what we call 49% as our guidance for this. In terms of our revenue, I think You want to comment? The- The revenue wide growth, big ticket, single-digit revenue growth only. High single-digit revenue. Yeah. Thank you, Pak Budi. There are question from Richard of Trimegah Sekuritas. I think the first question is on EBITDA margin guidance. It was conservative. We have addressed it. The next question is, do we anticipate any cost increases for 2023? Question, please. The one that currently we're looking at for 2023 is the cost for energy and electricity. As you know, Government already increased the energy and electricity last year, the fuel especially, 17%, but only for the consumer, not yet for the enterprises. That's the one that we continue watching out. Having said that, we've been actively also investing to ensure we got electricity productivity. A lot of initiatives been there to ensure that we can at least manage the impact to ensure it doesn't really hit badly on our P&L. That's one thing that we are anticipating for 2023. Thanks, Pak Budi. Choong Chen Foong also have the same question. Do we see any specific cost pressure? Foong, I believe that has been answered. Next question is from Henry Tedja of Mandiri Sekuritas. Can we provide more colors on the O&M negotiation that we have mentioned earlier, Pak Budi? What is the cost reduction that we will get from tower costs, and will it be applicable to all network sites? Your questions, Henry, related to O&M negotiation, right? How much the cost reduction. The one that we already booked in Q4 is pretty much the one year, top up. For our cost, it doesn't really impact for the beginning of the year, but total cost is the one that we're looking at. Because you can imagine, Henry, the portion of the O&M used to be 20% or 30%, and it's always being escalated every year based on certain parameter that we agreed with the vendor or with our company. That portion being reduced, then it will reduce total cost 10 years of the contract throughout the years. That's the one that we're looking at. In terms of numbers, roughly some contract 20%, 30%, now become 5%-10% only. I cannot give you the figures exactly, but I think roughly you can calculate. Thanks, Pak Budi. Follow-up question from Aqil Triyadi of Panin Sekuritas. How prepared are we for the auction of 700 MHz frequency? Ibu Dian. Yeah. Aqil, thank you very much for this follow-up questions. Of course, yeah, spectrum is probably the most important asset for any OPCOs or any MNOs. For our 700, what we know currently is that the available 700 spectrum, it will be actually divided by several packages. Currently we know that probably all of operators will actually are keen to get the spectrum of 700. For us, this also will be very important in getting this spectrum, because it will actually strengthening our capability for not only increasing capacity but also coverage, knowing that this is a lower band spectrum. At the moment, we are ready with funding for the spectrum if we win the spectrum, and we also already talked with the government on the importance of actually doing the spectrum auction as soon as possible. Thank you, Ibu Dian. Next question is from Lydia. Sorry, Bu? Yeah, okay, Christy. Oh, thank you. Continue. Next question is from Lydia of Eastspring. What is the proportion of postpaid subscriber between first and second tier cities? If we can share that. What is the mid-single digit growth guidance? How much is driven by ASP? Pak David, I think the question is yours, Pak. Yeah. I don't think I can share the proportion. Actually, let me maybe refresh a little bit. It's first and second tier cities, but it's also ex-Java. I cannot share the subscriber base that we have in ex-Java or second and first tier cities, but I can tell that the growth that we are seeing in general for the whole company, but also in Prioritas in those cities, it's big. Now to the second question regarding the mid-single digit growth guidance. Sorry, but what do you mean by ASP? How much of that is actually driven by our increases in pricing, Pak, for the top line revenue. Average selling price. Okay. Yeah. If we take a look also to 2022, I think there have been growth from two different areas. One is because we grow market share, and those additional subscribers are giving us additional revenue. The other part is because our subscribers consume more or spend more. That is our subscribers are spending more also comes from two things. One is from the price increases or the ASP, but also the other is the gigabytes per subscriber keeps increasing. Let's say that there are three drivers. One is the pricing or the, yeah, the price of the data. The other is more consumption of data per subscriber. The third one is increasing market share of subscribers. All the growth that we expect in 2023 also will be divided in those three drivers. It won't be only the ASP. It will be part of the ASP. As I was mentioning, we are going to increase prices starting in quarter one. We are going to do it soon, after the speed that we have already done. We also expect to grow the market share of subscribers, and we expect also a natural organic growth of data per subscriber that is already happening. Thank you, Pak David. Next question is from Choong Chen Foong of CIMB. Can we quantify the cost spend for the 3G shutdown and also digitalization in 2022? Was this all charged under OpEx in the P&L? Yeah. Chen Foong, there are two components, right? Mainly on CapEx, on this 3G shutdown, refarming, and also digitalization. For CapEx, as you know, it is not so much on OpEx because of rental. We are basically replacing the active equipment and also core equipments with 4G. That is the big give. Taking down the 3G equipment and replace it with the 4G. Mainly CapEx. There are some OpEx, like our 3G handset program. That impact OpEx or costs, to be precise. The one that hitting us. About the amount, for that I cannot really share the figures, but you can see the up and down year-on-year figures. Guesstimate how much profit, the amount related to it. Thanks, Pak Budi. Yeah. Next housekeeping question. Yeah. Thanks. A housekeeping question also from Foong, but related to the reserve for the new income tax law implementation that was impacting our labor expenses. Will this be in Q4 2022 only? Is this a one-off? It won't be one-off. It's going to be here to stay for this Article 21. You know what's the law, yeah, Chen Foong? It used to be, in Indonesia, if you have some allowance, tax allowance, for example, benefit, it's not subject to Article 21. You can treat it like a non-deductible expense in our P&L corporate. Now, since 2020, and 2021 actually, the government treat this as part of benefit that's subject to Article 21. We adjust it for 2022, it becomes the new norm for 2023 onwards, because that's required by the tax law. Thank you, Pak Budi. Yeah. Next question is from Richardson Raymond of Trimegah. How does management see higher possibilities this year? Stronger revenue growth or better OpEx control that will drive our EBITDA margin above our guidance? Okay. Regarding the revenue growth, as we were mentioning, we are expecting medium to high single digits growth, right? We are optimistic towards the year. We see that competition is becoming more rational, and the expected macroeconomic impact with all the inflation, et cetera, that started last year, we have not seen hurting the environment or the buying power of our subscribers. We are optimistic. We see that still the share of wallet of Indonesia's Telco, it's low, we know that we have room to grow. Again, being the competition more rational and with our plans to keep increasing prices, we are optimistic in the revenue side of the story. I'll let- Yeah Budi explain that. Yeah, just the same. On 49%, we will not comment. OpEx control is there. Whether it is going to be above guideline or not, we continue exploring. There is always a room for us to look around on our cost accounts that we are working on. Sorry, I am saying not straight to the numbers or figures here. Thanks, Pak David. Thanks, Pak Budi. Next question is from Etta Putra of Maybank. It is actually the same question also from Richardson's. This is regarding the FMC business model. How do we see this going forward? What will be the potential? Hi, Etta. This is Abhijit. Thank you for the question. We are very aggressive and ambitious about the FMC business model going forward. In the initial slides presented by Budian, you must have seen the figures about our aspiration to achieve 450,000 homes connect and 150,000 homes with our convergence product, which is XL SATU. FMC remains the key driver of our growth going forward. What is the business model, right? In the presentation, we also mentioned asset light. This is typically how we look at growth options. We do not necessarily have to inject huge amounts of CapEx. There are a lot of players in the industry who are willing to inject capital in infrastructure. What we do is we tie up with them through partnerships, so it becomes a CapEx light or a zero CapEx model for us. Mostly these partnerships are termed as build to suit or co-location models, where somebody injects the CapEx, builds the infrastructure, and we ride on that as a service company. The third element of your question was the business model and the integration with Link Net. There are two fundamental areas we are looking at. First is the synergies, and the work has progressed significantly around these. Where we are looking at backbone sharing, some pole sharing, transmission, and we will also be tying up on CPE, the consumer premises equipment. Trying to eke out synergies in all these areas. The second element also ties into the asset light, as I just mentioned, right? We will be looking at Link Net's deployment engine to see if we can leverage that to build out new areas for us to drive our FMC strategy. Thanks. Yeah. Christy, do you want to read out the next question? I think it is related to. Thanks, Pak Abhijit. Okay. Yeah, go ahead, Pak. Raymond, your question is expectations for how the FMC initiative will affect XL's total revenue in the short or long term. Well, in the short term, our focus is on getting homes connect on board. Once we have subscribers on board, that will drive revenue. In the short term, I think there will be an incremental kind of impact. Longer term, as stated in our strategy, we see ourselves as a very strong convergence player in this market. By that definition, obviously, significant portion of our revenues will come from FMC. By the way, we are looking at FMC not only in the consumer side or just homes. We are looking at that in enterprise side as well. Thanks, Pak Budi. Next question is from Choong Chen Foong regarding our increased fiberization rate that came up by close to 15 percentage points from 39 in FY 2021 to 54% in FY 2022. He asked how much of that was self-built and how much is leased, and do we have any target of fiberization for this year? Foong, the one that we did throughout 2022 is mostly on lease model. Not on build. Because as you know, we apply operational excellence, right? We always look at the cheapest, the fastest, and the highest return possible. And based on our calculation, the price lease in the market still very compelling for us compared if we invest ourselves. If you put the same fund as the same fund for the building up our own, the return is very low. Because the return is very better, we go with the lease model most of the time. Thank you, Pak Budi. As addition to that- Oh, sorry I think not only from the cost perspective, but from the practicality- Yeah it is also easier to do it in the lease model because those fiberization is through two tower- Okay which is also owned by tower company in leasing model with us. Yeah. Most of this fiber is provided by those tower provider. Yeah, correct. As you know, the practice in industry, right? If you roll out your own fiber through the tower company, there's some fee requested by tower company. For part of the deals, we work with the tower company to provide the fiberization with zero fee for the access. That's already very good on paper, and in practice as well. It's faster, as Bu Dian mentioned. The permit, everything already are there for us to execute. That's why we go ahead with this lease model more compared to if we do it self-build. Thanks, Pak Budi. Thanks, Bu Dian. In terms of target- Follow-up from Choong Chen Foong. Sorry, go ahead, Christy. No, Pak. Please, Pak. Yeah, in terms of target, as you know, every year we're adding more towers as well, right? 50%-60% is the one that we continue looking at because as our number of towers continue increasing, then the ratio we fiberizing compared to additional towers will also align together. Now we also have additional reason why we need to do this fiberization. Initially, this fiberization is not only supporting our 4G, but also for the 5G. Now for FMC as well, because for FMC, if we have already fiber as tower, then the last mile for FMC will be much more economical and faster. It depends on the archipelago as well, right. It's not always the best case to do fiberizations, as Bu Dian mentioned, depend on the opportunities that we're looking at, and depends on technicality and also situation on the specific fibers that we only do, so specific towers, then we do the fiberization. We're not always going to be 100% fiberized. Thanks, Pak Budi. Possible to address, Pak, the debt repayment that we have done in January 2023 and how it impact our debt profile? After we use up the 100% of the IDR 5 trillion cash coming from the rights issue, our position, in January, roughly I can give the figures, is somewhere between 53%-55% compared for the fixed and remaining with floating. That's the position post the repayment. Still not. Thanks, Pak Budi. 50/50, we are going towards that mix that we are aspiring. Okay, Pak. Next question is from Niko of Danareksa. What is the asset-light model that we are currently pursuing? Any specific telco areas that he is referring to? Second question is on our guidance regarding the financial expenses for towers. Christy, Niko, I will take the first question, right? Asset-light is not a new concept in the industry. All telcos have been looking on ways and means how to lighten the balance sheet. Right? By asset-light what we mean is, it is not necessary for us to own a particular asset in our functional value chain in order to serve our customers better. Few years ago, telcos started selling off their towers. That is one example of asset-light. Two, three years ago, XL also divested our data centers where we formed a JV with PDG where we have an equity stake. We are also looking to divest any other asset in the company which is not core to the business, and which helps to lighten our balance sheet and also serve our customers better. The most recent example of this was illustrated in my previous answer. In order to build a XL Home and build fiber in the access side of our network, we don't necessarily have to inject CapEx ourselves. There are a lot of players in the industry who are willing to inject capital in infrastructure in Indonesia. What we do is strike partnerships with them, which can take many forms, where they deploy the CapEx, build the asset, we ride on that asset to serve the customers. This is the most recent example. Second question, I think, to Pak Budi. Okay. Niko, on the questions related to financial expense for towers and the interest moving forward, will it come down? As I mentioned, the Q4, the one that we booked related to financial expense and interest related to the tower, that one is one time that also consists of some portion of our previous quarters. You have to normalize some of that situation if you want to forecast your Q1 onwards. Whereas for interest expense specific, after we repay our IDR 5 trillion loan using the Tri-Tiso result, obviously, our financial interest expense will be lower after that repayment onward. Thanks, Pak Budi. Housekeeping question coming from Henry Tedja of Mandiri Sekuritas related to the bundling cost of the 3G shutdown program, Pak, will it be normalizing in first quarter 2023, have we finished doing the 3G refarming? Yeah. As we mentioned, 3G refarming almost done. We can say done. Having said that, there's another situation that we are trying to tackle as well. The quality. As you know, voice service still needed. There's another program that we probably have to take care as a follow-up after the 3G. After the 3G shutdown, we can set to faster the adoption of our 3G refarming to 4G. Thank you, Pak. Next question is from Hendy Sugiarto of Jarvis. Do you see collaboration in terms of rolling out XL Home with infrastructure players like TOWR? Yeah. Can we provide Yeah, Christy, I will take that question. Hendy, hi. The short answer is yes. As we discussed previously. A couple of things. We are seeking to become an asset-light telco. That means we will leverage other people's infrastructure to serve our customers. As discussed, answered by Dian and Budi, many of these tower players are doing fiberization as well. They have a lot of experience in laying fiber, in maintaining towers, maintaining equipment. We see them as a natural partner in our drive to roll out fiber in the access network as well. On the FMC product push with XL Home and Link Net, it's early days yet. Link Net has taken our product and deployed it in their areas. I think currently we are seeing figures in the low single thousands. As we move forward, we will be ramping up. I think one point to note is, again, in Ibu Dian's presentation, we were mentioning that we are now ramping up our sales effort nationally to drive conversions better in the footprint, and we are working closely with Link Net on this topic as well. We can start driving conversions deeper into their footprint and our footprint. Thanks, Pak Bijit. Next question is from Richardson of Trimegah. He noticed that the CapEx is lower this year compared to last year. Is this going to be the run rate onwards? Hello, Richardson. Ibu Dian. Thank you for the question. As you might aware of that prior to 2021, our annual CapEx was around IDR 7 trillion-8 trillion. In 2021 and 2022, the CapEx was increased quite significantly, around IDR 9 trillion-10 trillion. The reason is because we had to shut down our 3G, we had to expand our 4G to replace the capacity and coverage that left by 3G technology. In 2023, because we already completed our 3G shutdown, that requirement is not there anymore. From this year moving forward, that will be our run rate for annual CapEx, which will be around IDR 7 trillion-8 trillion. This CapEx requirement will stay the same until there is a new technology coming in, which is 5G. We think that another high CapEx cycle for 5G will not come before 2026. Thank you, Ibu Dian. We have one last question from Ranjan Sharma of JP Morgan. Ranjan, go ahead and unmute your mic. Thank you, Christy. Thank you, management for the presentation and this opportunity. I have a bunch of questions. Maybe I can take them one by one. If I look at your presentation and you're on slide 10. The infrastructure costs are down from third quarter to fourth quarter. The first question is, what's behind this? Typically, these costs should be going up. Is this the capitalization of costs, so it's recorded as P&L and interest expense? Ranjan, as I explained earlier, that related to the one-time true-up on that because our result negotiation with our company is more on the IFRS 16 treatment reduction on the rental network. We got a higher ROU depreciation and financing cost. I think that's answered before. That drop from IDR 993 to IDR 662 in fourth quarter Yeah is primarily driven by capitalization of leases. Correct. Okay. From that perspective, if I look at your interest expense, it goes from IDR 700 billion to close to IDR 890 billion in the fourth quarter. Should we take that as a new run rate? You still have. interest expenses going up, interest rates going up. Yeah. This is not going to be a run rate. It's combination of few things, right? One, because of that capitalization. Second, because don't forget, we repay IDR 5 trillion, our debt, that will reduce the interest that hitting our P&L going forward. You have to mix the impact if you want to forecast. Got it. The depreciation and amortization of IDR 2.9 trillion because you have higher capitalization of leases? Yeah. Depreciation, roughly full year. That will be our base, but then it will depend on how we're going to roll out our CapEx going forward. Just going back to that, apart from CapEx, you have significant jump in leases. Your capitalized leases have gone from IDR 25 trillion at the end of 2021 to more than IDR 31 trillion in 2022, and that's been increasing through the year. Shouldn't that increase the P&L run rate? No, that balance, the increase happened in Q4 because of the one that I explained earlier. Okay tower O&M rent negotiation. Hence we capitalize, ROU increase the balance. Liabilities ROU. Got it. My last question is on the free cash flow. Even if I look at your 2022 numbers, if I just do a simple calculation of cash flow from operating activities minus CapEx, minus interest expenses paid, and minus lease liabilities, you have a negative free cash flow of IDR 1.4 trillion. When should we start thinking about XL becoming free cash flow positive? Yeah. As Bu Dian mentioned, as you can see, our CapEx on the high side in the last two years. Especially last year also, IDR 9 trillion in 2022. That's one of the driver for that cash flow operational. With this year, we back to the normal running rate of CapEx, it will significantly boost up the operational cash flow. In our indicated CapEx, we mentioned the one that we're going to spend around IDR 8 trillion. That will be the new guideline until the next technology coming. Okay. Got it. Thank you so much. Thank you, Ranjan. Thanks, Pak Budi. We have two more questions. We are in the last five minutes of the call. The first one will be from Niko Margaronis. How much percentage of our XL Home connection are based on fixed wireless access? And what is the incremental connection? Yeah. Thanks, Niko. Currently, actually none are on fixed wireless access. It's essential to distinguish between fixed wireless access and LTE. Currently, our customers on the fixed broadband are served through two technologies. One is fiber, and a small minority is served through a wireless router using our LTE network. I think in the future when 5G comes, then we will start looking at fixed wireless access. Currently, we are using the mobility spectrum LTE. Incremental connections predominantly will be based on fiber till the time 5G comes. Once that comes, we will evaluate the business case and see whether we can deploy more 5G in the last mile using FWA. Till such time, it is fiber. Thank you, Pak Abijit. Last question for today is coming from Hendy Sugiarto of Jarvis. He wants to know the economics and also the commercial thoughts surrounding the infrastructure rollout partner for fiberization. Pak Abijit, would you like to take this? Yeah. I think this is a key area, right? We've discussed in detail the asset-light model. Economics and the commercial model is a function of two things. One is who is the partner, and second thing is what is the business model that underpins the commercial model. There are a variety of infrastructure funds willing to deploy capital. There are a number of infrastructure players. We also spoke about tower providers. It really depends on who is entering this game. The economics is driven by their cost of capital, how much capital is required to deploy this, and then what kind of commercial arrangement they enter into us. There are a number of commercial models available in the market. I mentioned co-location, where, for example, a wholesale or an infrastructure builder will just come in and build a network, and then go and talk to any operator interested or any ISP who will come and do ride-on there on that work. The other type of model is what we call as build to suit, where we identify the areas where we are going to go in, and then we get somebody to come and build for us, and we do a long-term partnership. Really, the commercial model follows the business model and the economics of the infrastructure plan. I hope this answers your question, Hendy. All right. Thank you, Pak Bijit. That question concludes today conference call. Thank you, Ibu Dian, Pak Budi, Pak David, and Pak Bijit for your thorough and explanation. Thank you, everyone for your participation in today's call. As always, do get back to us if you need further information. Please stay safe and healthy, and we will see you next quarter. Thank you. Thank you. Thank you, everyone. Thank you. Have a good day. Thank you.