I will be coordinating today's call. Our presentation and financial results were released this morning and are available on our investor relations website.

Today's call will begin with prepared remarks from our management team, followed by a hybrid Q&A session. To ask a question, please type it in the Q&A box, along with your full name and company.

We will read your question for management to address. If time permits, we may open your line for live follow-up questions.

As a reminder, the session is being recorded. I would like to introduce our speakers for today's call: Mr.

Rajeev Sethi, President Director and CEO; Mr. Antony Susilo, Director and Chief Financial Officer; Mr.

David Arcelus Oses, Director and Chief Commercial Officer for Consumer; Mr. Feiruz Ikhwan, Director and Chief Strategy and Home Business Officer.

With that, I will now hand over to Mr. Rajeev to begin with the management highlights.

Mr. Rajeev, you may kindly proceed.

Sure. Thank you, Christopher, and good afternoon, everyone, and thank you for joining us.

As the company was formed in April of last year, 2025. This was the first year for XLSMART, and this quarter closes our first year post-merger.

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.

Most importantly, we've done this ahead of the plan. 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've achieved our 2025 synergy targets with opex 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 cost has largely been done.

The focus now shifts to sustaining discipline. Next, on growth quality, revenue growth was supported by a fully consolidated subscriber base and, more importantly, a strong ARPU 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. As we said earlier, in this market we'll want to play a responsible game and will encourage the market players to move into a situation which helps restore health to this industry.

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 exit the year with a stronger foundation, reduced complexity, and a clearer path to sustainable value creation going forward.

If I move to the next slide, building on the highlights which I've just shared, I'll 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 are seeing integration benefits are already being felt and enjoyed by the customers.

We've improved download speeds by up to 83% across the combined base. This is a real, meaningful improvement that supports better engagement and underpins the ARPU uplift that we are seeing 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 rationalization.

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 pace 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.

As I said earlier, it puts us in a very strong position to finish most of the integration by H1 '26. Excuse me.

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 and moving away from integration to driving more value.

The last part which I'm going to talk about is on the 5G rollout. As we said earlier, this merger gave us an opportunity to ready our network for 5G, and we are delivering on that promise.

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 to 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'll 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. 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: XL Prepaid, the postpaid brand PRIORITAS, AXIS, and Smartfren.

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 are also seeing external validation of our network quality. I'm happy to announce that XLSMART was awarded the Ookla 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, Pak Antony, to walk us through the financial results. Anthony?

Thank you, Pak Rajeev. Good afternoon, everyone.

Let me now present you our key operating metrics, which reflect a clear shift toward quality growth. We know that this quality growth because of the starter pack price adjustment and also the broader industry recovery.

Let's start with the subscribers. Our mobile subscriber base become 73 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, this 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% QoQ to become Rp44.8 thousand in Q4 2025.

This 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 monetizations.

Overall, this trends demonstrate that our strategy is working well. While subscriber numbers have normalized becoming better customer quality, usage intensity and ARPU continue to improve.

This positioning the business to be more sustainable and more profitable growth going forward basis. Slide.

Now let me present the financial performance for full year 2025, where it reflects the impact of the disciplined pricing, integration execution, as well as a clear focus on value creation. We start with the revenue figures.

The 2025 revenues increased by 23% year-on-year basis to become Rp42.5 trillion, driven primarily by the data as well as digital services. This growth reflects the benefits of price rationalization, ARPU uplift, and also a larger consolidated base following to the merger.

On the quarterly basis, the revenue grew by 4% quarter on quarter, demonstrating a continued momentum despite of the subscriber normalizations. Moving on to the profitability, normalized EBITDA for full year 2025 increased by 13% to become Rp20.1 trillion, while reported EBITDA margins moderated at around 42%.

This reflects deliberate acceleration on integration activities, which created a near-term cost pressure. On the normalized basis, EBITDA margin remained healthy at 47%, underscoring the underlying strength of the core business.

At the bottom line, normalized PAT grew by 63% year on year to become IDR 3 trillion in full year 2025, supported by the stronger operating performance and improving operating leverage. Reported PAT continues to be impacted by integration-related costs, as well as the one-off items, which is temporary in nature and aligned with our transformation roadmap.

Overall, in the full year 2025, we demonstrate a strong financial outcome: the revenue growth supported by the pricing discipline, resilient in the profitability despite of the integration acceleration, as well as significant stronger normalized bottom line. This position is good for us as we move into full year 2026 with a clearer earnings profile and increasing contribution from synergies.

Next slide, please. This slide provides a quick reconciliation between our reported numbers and normalized EBITDA, as well as the PAT.

This will help us to clarify the underlying performance of the business during the integration phase. On EBITDA basis, reported EBITDA full year '25 was Rp17.8 trillion.

This includes Rp2.4 trillion of integration-related opex, mostly on the network cost and people cost. These are primarily associated with accelerated execution of merger initiatives.

If we exclude this one-off integration cost, the normalized EBITDA stands at around Rp20.1 trillion, reflecting the underlying strength of our core operations. At the bottom line, the reported PAT was impacted by integration opex and then accelerated depreciation and asset impairment.

Adjusting for these three items, the normalized PAT for full year 2025 will be 3.0 trillion, Rp3 trillion. These adjustments are temporary and integration-related, and they do not change the fundamental earnings capacity of the business as we move beyond the integration period.

Move on to the next slide. Following the normalized EBITDA and PAT, this slide basically walks you about the operating cost base of post the merger.

Reported opex increased by 18% quarter on quarter in Q4 '25, largely reflecting the integration-related expenses and the expanded scale of operation after the merger. On a normalized basis, excluding this integration cost, opex increased by around 6% QoQ, which is broadly in line with our business expansion.

This indicates that the cost discipline remains intact, and the majority of the increase is temporary and non-recurring in nature. From a cost mix perspective, the main drivers for QoQ increase coming from three factors mainly: number one, higher labor cost related to the integration activities; second one, increased sales and marketing to support 5G launch and network expansion; and then the third one, higher infrastructure expenses due to more sites and network integration.

These increases are structurally aligned with scale and integration rather than inefficiencies. That's it from me.

I shall now hand over back to Pak Rajeev to provide the full year 2026 guidance and the closing remarks. Thank you.

Sure. Thank you, Pak Antony.

As you mentioned, I will talk a bit more about the 2026 outlook. Starting with revenue, we expect revenue growth to be broadly in line with the overall market, which we believe should be recovering from a bad first half of 2025.

As all of us know, there's been a strong recovery in the second half of the year, and we expect that recovery to continue, and we'll want to participate in that market growth. This will reflect a very disciplined approach that will prioritize value and sustainable return over just volume-driven expansion.

EBITDA growth is targeted at approximately two times the revenue growth, supported by continued cost discipline, operating leverage, and the ongoing realization of merger synergies. Capitalized capex for 2026 is projected to be around Rp15 trillion IDR.

This may inch up higher depending on our ability to execute all the capex projects which we have. If we are able to do that, it may inch towards 20 trillion.

This level of investment is focused on strengthening network quality, completing integration, and supporting targeted 5G expansion, while maintaining financial discipline. On synergies, we are targeting a merger synergy of between $250 to $300 million in 2026, driven by efficiencies in network operations and vendor procurement.

Beyond 2026, we remain firmly on track to achieve our full synergy potential, which, as stated earlier, of between $300 to $400 million USD annually once the integration is fully completed, which should happen by end of this year. This was from me, and I conclude my summary and hand back to Chris.

Thank you, Pak Rajeev and Pak Antony for the presentation. Ladies and gentlemen, we will now proceed to the Q&A sessions.

As a reminder, the Q&A session will be a hybrid mode. To ask your question, you may type it in the Q&A box.

Please ensure to also type in your name and company name. If you'd like to have further clarification after your question, kindly use the raise hand button, and we will proceed to unmute your microphone.

Now, allow us some time to compile the question before we read it out to you. The first question comes from Piyush Choudhary from HSBC.

There are four questions. Let me just read the first one about the normalized EBITDA growth, which is only 1% QoQ when the revenue is up 4% QoQ.

Second question is about the outlook for mobile ARPU and how are the trends in first Q 2026 so far. Question number three: what is the fixed broadband ARPU and in fixed broadband, what is the outlook for both subs and ARPU?

Fourth the fourth question: any update on the potential spectrum auction timing and pricing? For the first question, I would like to invite Pak Antony to provide some clarity on that.

Okay. Thank you, Piyush.

On the first item regarding the normalized EBITDA, why the growth is only 1% while the revenue is up by 4%, I think like I explained by Pak Rajeev earlier that in Q4 we did a lot of campaign on the 5G anticipating the 5G launch. We are already entered to 33 cities in Q4 2025.

Because of that, then there is a additional cost increase from the sales marketing activities. I think that's the answer the number one.

On the second question, maybe Pak David?

Yeah. The outlook for mobile ARPU during 2026, if you take a look to the last couple of quarters, you can see that our ARPU has increased significantly.

Where did the ARPU growth come from? Two two areas.

One is because our subscribers use more, more gigabytes per subscriber, and number two, because our yield, our price, increased. ARPU increases because people use more and because what they use, it's more expensive.

If you have seen, our yield in the last two quarters have grown double-digit, it's almost a 10%, right? We have had a significant increase in the price per gigabyte, or the revenue per gigabyte, very very healthy.

I would say that in quarter one, you can expect more of the same. Our bet for good-quality subscribers is there.

I guess that we will see ARPUs moving in the correct direction, up, with prices also moving in the correct direction, and traffic coming as well. I would say that we could expect ARPUs to keep moving in the same direction.

Thank you, David. Next part, the FBB, I'd like to invite Pak Feiruz to provide some colors on the FBB.

Sure. Hi, Piyush.

Thanks for the question. For ARPU, typically we've not disclosed in terms of the fixed broadband ARPU.

Let me allow to give you a bit of color in terms of the outlook, right, for the subs and ARPU. You have seen the market and industry have seen some moderation in the ARPU, but I think suffice to say that any decline in ARPU that we see are much more moderated compared to the market.

I think that clearly reflects also our discipline, right, in pricing and focusing on higher-quality acquisitions. Then for my subscribers, there's a lot more demand, right?

I think the broadband demand remains structurally strong, right? In Indonesia, we see a huge opportunity for growth as data consumption increases, in particular in the home.

Having said that, I think we need to be responsible, right, in terms of capturing the growth and targeting the right segments by offering the right products and without, shall I say, destroying, right, the value.

Thank you. Thank you, Pak Feroz.

Maybe

Pak Rajeev? On the last one on this spectrum, Piyush, on the timing, we believe this should be completed and awarded by H1 of this year, the first half.

Pricing, I would not want to speculate. We just hope that the pricing is rational, which enables us to offer better services to the customers.

Thank you, Pak Rajeev. Now, please open the line for Piyush.

Yeah. Hi, thanks for all the answers.

Just two follow-ups. Firstly, which spectrum band are you using for 5G and are you deploying SA or NSA?

Secondly, on your kind of subscriber base of 73 million, how much is the 5G device penetration at the moment? Thank you.

Currently we are using NSA, and the spectrum which we are using is 2300. The device penetration, David, would you want to?

Yeah. Device penetration in the cities that we are launching, in the 33 cities that we are already up and running, we can say that the device penetration is around 20% in the cities.

In our own customer base could be close to that number as well. I would like to underline, in any case, that even though the device penetration today in those cities, of course, in more rural areas will be lesser, in the cities that we are launching it's around 20%, but the most important is that the replacement of the devices, the new devices that are coming are in a bigger percentage 5G devices.

Got it. Thanks, everyone.

Thank you, Piyush. Right, let's move on to the next question.

Next question from Sabrina from Trimegah Sekuritas. There are three questions.

First one: should we expect accelerated depreciation to continue only through first half 2026 in line with the completion of core integration, and it would be helpful if you could provide an indication of the magnitude? Question number two: noted a significant increase in salaries and allowance expenses.

Would you elaborate on the drivers? Is this related to cost associated with employee optimization, and should we expect this level to persist or normalize post first half 2026 once integration is completed?

Third question is: does your EBITDA guidance incorporate the potential cost related to this year's spectrum auction? For all the three questions, I would like to invite Pak Anthony to provide some colors on that.

Okay. On the first question on the accelerated depreciations, I think we mentioned that our full integrations will be completed by two years.

I understand that from Pak Rajeev presentation already mentioned the MOCN network already happens like 70% already, but then in terms of the accelerated depreciations, I think will not be finished by first half of 2026. It will still continue until end of 2026.

I believe the Q4 2026 hopefully will be already showing a lower rate, starting Q3, Q4. Because the heavy one in the first half, indeed, yes, correct.

Maybe Q3 also correct, but then Q4 will be tapering off to the last one. That's on the first one.

The second one, in terms of the significant increase in salary and allowance expenses in Q4, yes, it is mostly in the Q4 there is this cost increase associated to the employee optimizations. Yes, there is some program that management did in the company because we hear from the employees that some of the employees knows that they want the management to make some programs to offer them a resignation program.

It is based on mutual scheme program, and then some of the employees took that program. Because of that, then we incur quite a number of operating expenses in terms of personnel expenses.

These things only happens in December, this mutual scheme program. Next year, I think it will be very, very minimal, I would say.

Where we still see that there is some things that we can optimize, but it will be minimal. The biggest chunk already happens in 2025 in December 2025.

I think that's to answer number two. Number three: does your EBITDA guidance incorporate the potential cost after spectrum?

Today, this EBITDA guidance is before the spectrum auction, because at this moment we don't know how much is the spectrum fees that will be finalized by the government at this moment. This EBITDA guidance is still outside or exclude the spectrum auction.

Yeah. Thank you.

Thank you, Pak Antony. All right, now please open the line for Sabrina if you have any follow-up questions.

Hi, Pak Antony. Thanks, Chris, for the opportunity.

Maybe just one follow-up questions, but it's not related to my questions earlier. Just want to know about the ARPU momentum, because we track in January, I think there has been no bonus quotas being offered in January.

Are we seeing this trend to continue in February as well as March? Is this part of the pricing strategy to lift up the data yield going forward, or, as we know, that the festive season is approaching soon, right?

Are you guys planning to increase some bonus quota and therefore we should anticipate there could be some pressure in data yield for first Q?

Actually, no. As you say, the closer the festive period, the better the moment to monetize, let me put it this way.

Independent of that specific seasonality, I think our strategy, it's clear: we want high-value customers, and our strategy is going to be to try to avoid as much as possible these freebies or be, at least, very conscious of the price per gigabyte that we are charging. In that sense, again, you can see that in the last two quarters, we have been able to increase the revenue per gigabyte double-digit, 10%.

I think that shows very clearly that we are very serious on our strategy of repairing the market, number one, and going after the high-quality subscribers. This is our strategy and this is how we'll follow.

Thank you, David. Sabrina, do you have follow-up question?

Awesome. No further question from me.

Thank you very much, management.

All right, thank you. Let's move on to the next question from Ibnu Safari from BCA Life.

Now that XLSMART has exited its position in MORATEL, how will the company navigate its future focus? Second question: despite the year-over-year dip in FBB subscriber, will XLSMART continue to pursue its fixed-mobile convergence strategy or will you refocus primarily on your core mobile telco business?

Like to invite Mr. Rajeev to provide some color.

Yeah. I think exiting Moratel was decided pre-merger that the principal shareholders' investments in the subsidiary companies will be monetized, it's part of that.

It doesn't fundamentally change our future, especially on the home broadband or FBB, as you call it. The focus on this continues, and as we said earlier, we would want to work with any partner who is in a position to provide us access to home passes.

We are working with the biggest FLP providers in the market, fiber lease providers, and we'll continue to expand that part. The other part is whether FBB is an option for us or we'll go back to only mobile telco.

I think all of us realize that more and more consumption eventually will happen inside the home, it is super important for us as a mobile operator also to win the home market also. That focus will continue.

Towards that, we'll have both these strategies, which will be fiber at home and also FWA on 5G. Our 5G investment, as we spoke about, we are very proud about blanket 5G coverage in many cities, and we continue to roll that out.

All those cities will be using 5G FWA to provide a very attractive, alternative option for the customers to enjoy a fiber-like Wi-Fi experience at home. Short answer is, the focus will continue.

In fact, it'll be even more stronger as we move forward.

Thank you, Pak Rajeev. Now, I'd like to open the line for Mr.

Ibnu to ask follow-up question, please, if you have. Seems no follow-up question.

I think we can move on to the next question. The next question coming from Brian from UOB Kay Hian.

How much more integration cost should we expect in 2026? Would you provide some colors on when this cost will be booked?

Also, there is regarding accelerated depreciation, impairment cost, and personnel cost, would you provide what period will see this booked? I would like now to invite Mr.

Antony to provide the color.

Okay. On the integration cost for 2026, we expect the amount would be much much less than the 2025.

If you look at the 2025 figure, it's 2.4 trillion, but then I believe in the 2026 it will be less than Rp1 trillion. That's on the integration cost.

Then the question regarding the accelerated depreciation, I think on the accelerated depreciation I already mentioned a little bit, but if I just to give another color on the amount, the amount will be more or less around Rp5 trillion. In the 2025 it's around 4 trillion, 4.7, I believe, and then going up to around 5 trillion, slightly higher.

I think that's the answer the question. Thank you, Jeffrey.

All

right, thank you, Pak Antony. Brian from UOB, do you have any follow-up question?

No, thank you. Thank you, Brian.

All right, let's move on now. We have the question coming from Arthur Pineda from Citi.

There are two questions. First one is: where do you see the market growth levels in 2026?

Number two: can you help us identify the depreciation and amortization trend for 2026? What was the annual D&A being booked from the assets that were removed based on accelerated depreciation?

Oh, there are three questions. The third one: where do you see mobile and broadband user base into first Q 2026?

Do you see this reporting to growth, or do you still see some churn? I think we can start question one on the market growth level.

I'd like to invite David.

Hi, Arthur, good to see you. Actually, we don't usually give the guidance on how much the market can increase or not.

That's why when we gave the guidance, we say "in line with the market", right? We don't give a specific number.

Now, if you ask me, I think we have the correct momentum to believe that the market can grow healthily this year, unless again, something strange happens, right? I think we are in a correct momentum to have a good year.

Again, I don't want to say this too much because if you ask me two years ago in February, I would have said the same and then it didn't happen, right? Again, I am not able to give a number.

That's why when we give the guidance, we say "in line with the market".

Thank you, David. Second question, maybe Pak Anthony, can you give more color on the D&A?

Okay.

On the D&A for 2026, I think, as I mentioned earlier, this D&A consists of accelerated depreciation as well as because we are expanding around 7,000 sites, maybe around 8,000 sites in 2026. With that actions, the movement, we are expecting that the D&A for 2026 will increase maybe around 10%, 15% from 2025 figures.

Because accelerated depreciation still continue at Rp5 trillion, and then the normal depreciations, of course, because of the additional of new sites, then we have to start recognizing the depreciations. That's it, I think.

Thank you,

Pak Antony. The third question, where do you see on mobile and broadband users 2026?

I think David already give some colors, right, on that? Pak Feiruz, you want to give some colors on your broadband users part?

Sure. I think, hi, Arthur.

Typically, we don't provide guidance for the quarter. What we see is, I think the market remains competitive.

Having said that, we are very conscious and deliberate in trying to acquire a quality subscriber. I think that's the focus for

value, rather than just short-term volume growth, right? Volume growth.

Having said that, we've seen signs of stabilization, but it's still very early days. We still continue to improve and focus on getting the right customers, as well as improving the value for our existing base.

Thank you.

Thank you, Pak Feiruz. Arthur, do you have any follow-up question to ask?

Yes, please. Just a clarification with regard to the merger expenses being booked for 2026.

You mentioned 1 trillion earlier. Is that just for the opex side, and should we expect another 5 trillion for the asset impairments?

Is that how we should look at this?

Oh, you're referring to the 1 trillion integration cost, Arthur. Is that correct?

Yes, because in the earlier question, I think you responded with around 1 trillion integration costs. Is that just for opex,

and

should we assume an additional 5 trillion for asset accelerated depreciation? Is that how we should look at it?

In 2026, yes, there will be a one-time cost again, which is integration cost, which is hopefully less than Rp1 trillion. That one is related to network as well as to people.

Then for the second one is the accelerated depreciations, which is around Rp5 trillion, which is non-cash items. It's another one-time cost again that we have to incur this year.

Understood. Thank you very much.

Okay. Thank you.

Thank you, Arthur. Thank you, Pak Antony.

Now let's move on to the next question. Henry Tedja from Mandiri Sekuritas, two questions.

The first one is, what can we check about the integration cost outlook for this year, which I believe Pak Antony has already answered earlier. Second question regarding the effort to get the quality subscriber base: can we check whether the subs base decline trend will started to stop or slow down post the 4Q 2025?

Like to invite David to provide some colors on the subs trend from mobile.

Subscribers. The subscriber base, we usually, internally, we divide the subscribers in subscribers of less than three months that have been with us less than three months and subscribers that have been with us more than three months.

Those that have been with us long tenure, we call them high-quality, right? Usually, are high-ARPU, high-quality.

Most of the subscribers that you see that are disappearing are those that are less than three months. Who are those subscribers?

Those subscribers are subscribers that were buying again and again a SIM card: use and throw, use and throw. Probably we were counting them more than once.

It's not one subscriber, maybe was counted like five. That's number one.

Number two type, it's a very price-sensitive person who is willing to keep changing the SIM card because of a few gigabytes or a few rupiah up and down. Again, our strategy was, okay, we are not going to entertain those subscribers.

There are other operators where they can go and keep being entertained, but not us. We will protect our network in order to provide the best customer experience for the good-quality subscribers.

We started cleaning back in quarter three, quarter four, and in quarter one, I believe that we will still have some correction of this low-end, low-ARPU subscribers. Yeah.

In any case, again, our objective is to increase the amount of good-quality subscribers. That's our main topic rather than the overall or the total amount that we have.

That's a little bit the strategy. Probably in quarter one, you will see the total amount declining, but hopefully, internally, we will see the good-quality subscribers keep increasing, as we have seen in the last few months.

Thank you, Pak David. Henry, do you have follow-up question to ask?

Yes. Thank you, Pak Chris.

Perhaps two questions, two additional questions. The first one regarding the employee optimization cost: would you mind to share the exact amount of the cost for this employee optimization?

The second question, perhaps regarding the 5G: We are discussing about the 5G earlier in the presentation and then in terms of how big we spend in terms of the marketing expenses and also investment as well for the 5G, I'm just curious what will be the 5G impact for the XLS, perhaps in terms of the productivity and ARPU for the subscribers in here? Thank you.

Yep. I think on the first one, you spoke about the Q4 people cost because of the integration, separation of people.

Given the sensitivity, it's people involved, we would not want to get into too much details there. What we can confirm is most of the cost on account of that has been incurred in 2025.

There will be a small marginal cost as we move towards 2026, possibly in the first half, and it'll be much smaller than what we've incurred in last year. I think there are a couple of other questions, which is about the 5G cost, especially on the marketing, communication, sales part.

Yes, quarter four was higher because we were just launching 5G, and we had saved for that cost during the course of the year because we knew about the impending 5G launch. On the overall sales and marketing cost, there would be some quarters in quarter in in 2026 where we are spending more, in some quarters less, depending on the rollout of 5G and the seasonality as you would appreciate.

What I would encourage all of you to is to take a look at an average cost for 2026 on sales and marketing, which will be very similar to 2025. Obviously, the focus will shift more and more on 5G, especially in the cities where we are launching 5G, but the overall percentage will remain percentage to revenue will remain the same.

In terms of the ARPU increase, I think David can add a bit more color on this, but as we said, we believe 5G should be for everyone, and that's what we are doing. Most of the ARPU increase we believe would be consumption-led because people will tend to consume more because of better 5G experience, and there are certain specific plans which you are launching on 5G, which will also help us generate more revenue.

David, in case you want to get into more details.

No, as Pak Rajeev mentioned, right, our strategy of monetization, it's passive monetization in the sense that anyone with a 5G device access the 5G network. In that way, her customer experience will be much better and, hopefully, the usage and as a consequence the ARPU will be higher.

That's one, plus we have specific products, very attractive products at higher prices that will help us increase the ARPU. What we have seen in the very first month, two months that we have been already with the 5G, it's specifically that.

We see that the 5G devices in 5G areas, their ARPU is significantly higher than other devices in other areas, be it 5G devices in other areas or, of course, 4G devices in other areas. Again, it's exciting for us to see that, and now it's more about implementing this properly and continue the expansion of the 5G in more areas.

Thank you, David, for giving the color on the 5G. Henry, do you have any follow-up question on that?

No, I think it's clear. Thank you.

Thank you, management.

Thank you. Let's move on to the next question from Aurel, Aurelia Barus from Indo Premier.

There are two questions. The first one, on the sales and marketing expense: given the ongoing 5G expansion, do you expect 2026 outlook to follow the 4Q trend?

This one, I'd like to invite...

That's answered. That's already answered.

Already answered. Then the second question is on ARPU for FBB.

I think this one also already answered by Pak Feiruz. Aurel, do you have any follow-up question on that?

No, Pak, I'm good. Thank you.

All right, thank you. Now, I think there is a question from Sachin.

Unfortunately, he's not able to type. I would like now to unmute his line.

Sachin from UBS, will you please ask your question? Sachin, are you there?

Since Sachin is not responding, we will take your question offline after this call. That's, okay?

All right. Seems like that's it.

That's all the questions that we have for today's conference call. Thank you for participating.

That concludes our today's conference call, and thank you once again for everybody to participate. If you have any further questions, please reach out to Investor Relations.

Stay safe and healthy, and we look forward to speaking to you next quarter. Thank you.