Slides
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1 1 2Q 2025 Results Presentation August 27, 2025
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2 Disclaimer The following presentation contain statements about future events and expectations that are forward-looking statements by the management of PT XLSMART Telecom Sejahtera Tbk. relating to financial trends for future periods, compared to the results for previous periods, characterised by the use of words and phrases such as and other similar expressions. Forward looking information is based on current views and assumptions including, but not limited to, prevailing economic and market conditions. Our business operates in an ever-changing macro environment. As such, any statement in this presentation that is not a statement of historical fact is a forward-looking statement that involves known and unknown risks, uncertainties and other factors which may cause actual results, performance and achievements to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. This presentation does not constitute an offer or invitation to sell, or any solicitation of any offer to subscribe for or purchase any securities and nothing contained herein shall form the basis of any contract or commitment whatsoever. No reliance may be placed for any purposes whatsoever on the information contained in the presentation or on its completeness, accuracy or fairness. None of the Company nor any of its shareholders, directors, officers or employees nor any other person accepts any liability whatsoever for any loss howsoever arising from any use of this presentation or its contents or otherwise arising in connection therewith. shall mean Indonesian Rupiah. Any discrepancies between individual amounts and totals are due to rounding.
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3 Key Highlights
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4 Key highlights 4 Stronger Positioning: Enhanced reach through three-brand strategy, wider distribution Modernizing our Network: Consolidation creates strong momentum to build high capacity, larger reach and future-ready network Synergy on Track: Network integration progressing as planned, increased customer experience for our subscribers Larger scale Post Merger: 2.5 months of consolidated performance post-merger
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5 Unlocking long-term value The strategic vision of XLSMART merger 5 Leaner, Smarter, Stronger • Unlock savings thru network consolidations & shared platforms • Drive disciplined execution to reinvest strategically in future growth • Accelerate returns by streamlining partner ecosystem Maximize Scale • Expand network footprint while optimizing spectrum utilization and coverage • Strengthen our distribution footprint across Indonesia • Harness our enlarged scale to drive greater cost efficiency Laying Foundation for Long-Term Upside • Build capacity to expand FBB, enterprise connectivity, and digital monetization • Enable agile rollout, smarter pricing driven by superior user experience & stronger network quality • Strengthen our commitment to connecting every Indonesian for a better life Scale Advantage Synergy Potential Platform for Growth
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6 Building value from the consolidation Significant progress achieved post-merger Technology Commercial People • Rapid network expansion via NR and MOCN* • Integrated Managed Service and NOC • Fast-track vendor consolidation • Maintain three brands post-merger • Monetization of CX improvement • Harmonizing field force and digital tools • New BOD & BOC line-up from Day 1 • Unified culture across regions • Strong, ongoing employee engagement * National Roaming & Multi Operator Core Network
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7 Integration and synergy update Off to a good start with network integration on track Better user experience Key Priorities Progress Highlights Impact Delivered* Network integration, and other key areas: IT, people, commercial More coverage for SF subs Higher traffic Appointed network integration vendors Commercial rollouts in all regions Improve customer experience in XLSMART network Integration to complete in 8 quarters Culture & people alignments * Measured based on sampled cities that have completed integration
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8 8 Network integration significantly increases coverage and improves user experience 156 new cities now accessible for SF subscribers with 11,000 sites enabled +12% 54,337 377 109,170 2Q 24 49,471 8 160,341 2Q 25 163,884 209,820 +28% 2G 3G 4G BTS Count 2Q24 BTS numbers are pre-merger, 2Q25 numbers are post-merger Fastest National Roaming activation: 100% completed in 60 days Bigger spectrum portfolio post-merger Wider coverage for 475 cities across Indonesia
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9 Unified vendor ecosystem enables faster rollout & better cost control. Network consolidation eliminates duplication and maximizes asset utilization. Establishes platform to capture new digital and enterprise opportunities Strategic investment to scale up performance Investment for the future Executing a bold, strategic, capex plan to modernize our infrastructure and build a high capacity, future-ready network.
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10 Accelerating digital engagement across three brands 10 29% Stronger user base via app unification, more than 50% adoption rate Higher value contributed from Own Apps Riding the digital momentum to grow more active users in myXL AXISNet - mySmartfren Revenue ContributionOwn App Users Growth 2Q 24 2Q 25 32.1 41.4 YoY growth 2-yr CAGR 18% 2Q 23 2Q 24 2Q 25 2Q23 and 2Q24 numbers are pre-merger, 2Q25 numbers are post-merger
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11 Financial & Operational Highlights
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122Q24 and 1Q25 numbers are pre-merger, 2Q25 numbers are post-merger Mobile Subscribers (Mn) Traffic (PB) FBB Subs (Mn) 56.9 1.6 2Q 24 57.1 1.8 1Q 25 80.7 1.9 2Q 25 58.5 58.8 82.6 +41% +40% Prepaid Postpaid 43 38 36 91 85 84 2Q 24 1Q 25 2Q 25 Prepaid Postpaid 44 40 36 Blended 0.27 1.02 0.98 2Q 24 1Q 25 2Q 25 +268% -4% 2Q 24 1Q 25 2Q 25 2,660 2,848 3,817 +43% +34% 2Q24 and 1Q25 numbers are pre-merger, 2Q25 numbers are post-merger Enlarged subs base post-merger with higher data traffic 43 37 89 84 1H 24 1H 25 1H 24 1H 25 5,269 6,665 +26% 44 38
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13 EBITDA (IDR Bn) PAT (IDR Bn)* EBITDA Margin (%) 490 388 -1,607 490 388 313 2Q 24 1Q 25 2Q 25 -36% -19% Revenue (IDR Bn) 8,017 7,887 9,579 598 2Q 24 716 1Q 25 923 2Q 25 8,615 8,603 10,502 +22% +22% Data & digital services Others 2Q24 and 1Q25 numbers are pre-merger, 2Q25 numbers are post-merger Revenue growth post merger driven by scale Stronger mobile base supported revenue. EBITDA & PAT impacted by integration cost 15,840 17,466 1,216 1H 24 1,639 1H 25 17,056 19,105 +12% 1,037 -1,218 1,037 701 1H 24 1H 25 -32% PAT Normalized PAT 4,503 4,321 4,4874,503 4,321 4,973 2Q 24 1Q 25 2Q 25 +10% +15 EBITDA Normalized EBITDA 8,958 8,8088,958 9,294 1H 24 1H 25 +4% 2Q 24 1Q 25 2Q 25 52% 52% 50% 50% 43% 47% EBITDA margin Normalized EBITDA margin 1H 24 1H 25 53% 53% 46% 49%
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14 Normalized EBITDA and PAT Reported EBITDA 4,321 4,487 8,808 Integration costs (Opex) - 486 486 Normalized EBITDA 4,321 4,973 9,294 (in IDR Bn) 1Q 25 2Q 25 1H 25 Normalized EBITDA and PAT are adjusted to reflect the one-off items which occur during integration period & asset impairment. Reported PAT 388 (1,607) (1,218) Integration cost (Opex)* - 379 379 Accelerated depreciation - 739 739 Asset impairment - 802 802 Normalized PAT* 388 313 701 * Adjusted with corporate income tax rate Business fundamentals remain strong despite one-off adjustments, ongoing integration
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15 Operating Expenses (IDR Bn) 4,110 4,280 6,007 2Q 24 1Q 25 2Q 25 +46% +40% Interconnection and Other Direct Expenses increased 48% Link Net, higher revenue as impact from merger. Labor Costs employees from merger impact, integration cost, additional employees from LN FBB subs acquisition. Sales & Marketing sales commission, offset by higher advertising & promotion cost. Infrastructure of sites and network integration post merger. Regulatory Costs due to increased frequency fee from additional spectrums acquired post merger, higher license & USO fee impact from enlarged revenue. Supplies and Overhead increased 69% YoY for integration, higher G&A. 2Q24 and 1Q25 numbers are pre-merger, 2Q25 numbers are post-merger Cost base expansion after merger Opex growth driven by expanded operations and integration efforts 8,094 10,287 1H 24 1H 25 +27% Operating Expenses (IDR Bn) 2Q 24 1Q 25 2Q 25 1H 24 1H 25 Interconnection and Other Direct Expenses 676 810 999 1,295 1,809 Labor Costs 461 515 1,103 819 1,618 Sales and Marketing 546 389 527 1,079 916 Infrastructure 1,165 1,261 1,494 2,397 2,755 Regulatory Costs 1,155 1,221 1,705 2,296 2,925 Supplies and Overhead 106 84 180 208 264 Total 4,110 4,280 6,007 8,094 10,287
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16 FY25 Guidance
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17 in-line with the market (As reported: 20% - 30% growth*) Low to mid 40% IDR 20 Tn 25 Tn ** FY25 guidance 1 2 3 Revenue growth EBITDA margin Capital expenditure *vs legacy XL Axiata (pre-merger) 2024 performance **Include CAPEX required for network integration US$ 100 200 Mn *** 4 Merger synergies ***Gross synergies
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18 https://www.xlsmart.co.id/ Thank you!
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19 Free Cash Flow (IDR Bn) Capitalized Capex (IDR Bn) Free Cash Flow defined as EBITDA minus Capitalized Capex Gross & Net Debt (IDR Bn) Gearing Ratios (x) 10,831 23,189 9,436 21,929 1H 24 1H 25 4,145 2,331 1H 24 1H 25 -44% Gross Debt Net Debt 4,813 6,477 1H 24 1H 25 +35% 0.60 1.32 2.54 3.60 0.53 1.25 2.46 3.53 1H 24 1H 25 Gross debt to EBITDA Gross debt to EBITDA (incl. Fin lease) Net debt to EBITDA Net debt to EBITDA (incl. Fin lease) 2Q24 and 1Q25 numbers are pre-merger, 2Q25 numbers are post-merger Increase in debt and gearing due to merger consolidation
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20 Interest Rate Profile Maturities (IDR Tn) 3.6 1.478% 22% IDR Fixed IDR Floating 2025 2026 2027 & beyond 2.1 2.9 18.3 Borrowing profile