Pt Xlsmart Telecom Sejahtera Tbk · IDX:EXCL
Pt Xlsmart Telecom Sejahtera Tbk — XL Axiata — Merger or Acquisition (March 2025)
25 slides from Pt Xlsmart Telecom Sejahtera Tbk's merger presentation, Mar 12, 2025
Slide 1: XL Axiata - Smartfren Merger: Creating a Digital Champion in Indonesia
» XL axtata L - Smartfren Merger: ing a Digital Champion in Indonesia Investor deck March 2025 12/03/2025
Slide 2: Agenda: XL Axiata Overview
Agenda O1. XL Axiata Overview 12/03/2025
Slide 3: XL Axiata's Achievements in 2024
XL Axiata’s Achievements in 2024 Delivering profitable growth with strong financials. Successful Structural 3 XL axiata Transformation and Ongoing process towards a Strategic Merger Strong Profitability Metrics - revenue grew 6% to IDR 34.4 trillion with g EBITDA margin improving to 52.0%, highest l
Slide 4: FY24 subscribers, revenue, EBITDA and PAT
(IDR in trillions) (in millions) Mobile subscribers -4% Total revenue 51.2 55.9 98.8 94.7 32.3 34.4 57.5 58.8 FY23 FY24 FY23 FY24 (IDR in trillions) (IDR in trillions) 26.4 5.3 EBITDA 23.9 4.8 PAT 17.9 15.9 1.8 1.3 FY23 FY24 FY23 FY24 Other telco
Slide 5: Total Dividends: strong dividend growth over five years
Total Dividends: XL Axiata has had strong dividend growth over the last five years (IDR in billions) +904 1120 636 552 552 339 216 2020 2021 2022 2023 2024 2025 Dividend yield1 0.6% 1.2% 1.6% 2.0% 2.4% 3.8% Dividend 30.3% 91.3% 42.9% 49.7% 50.6% 61.6% payout ratio2 1 Based off last closing share pri
Slide 6: Cash dividend distribution
Cash dividend distribution • XL Axiata is intending to disburse annual dividends in the amount of IDR1,120 billion, or IDR85.7 of dividends per share. • Dividend payment is dependent on XL Axiata’s capital adequacy, financial condition and other matters, taking into account the considerations of XL
Slide 7: Agenda: Corporate Action Plan
Agenda O2. Corporate Action Plan 12/03/2025
Slide 8: Current and post-merger shareholding structure
Current shareholding structure Post-merger shareholding structure • Merger ratio of 72:28 equity value split between XL Axiata and Smartfren respectively. Minority shareholders • XL Axiata will be the surviving entity and remain listed in IDX Minority 66.5%1 33.5% while issuing new shares to Smartfr
Slide 9: Outsized buy recommendations by research houses
Outsized “buy” recommendations by research houses 1... “To calculate NPV upside potential from the company’s guidance of US$300m-400m Hold (4) pretax synergies, we use…DCF method: Rp19.6tr-28tr…” 29% Broker 1 Buy (10) 71% “…mgmt. and controlling shareholders are expected to be well-prepared, lev
Slide 10: Merger timeline and definitive agreement
10 Dec 2024 Definitive 11 Dec 2024 OJK & MOCD Mar 2025 OJK 24 Mar 2025 25 Mar 2025 By 1H 2025 agreement OJK & MOCD approval We are MOCD effective Axiata XL Axiata & Merger Signing submission “in principle” here approval statement EGM Smartfren EGMs Day 1
Slide 11: Agenda: Unlocking Value - XLSmart
Agenda O3. Unlocking Value - XLSmart 12/03/2025
Slide 12: XLSmart
XLSmart • Combined pre-synergy enterprise value of over IDR104 trillion (~US$6.5 billion) • Strategic partnership between two of Asia’s leading digital telcos, Axiata, and one of Indonesia’s most renowned conglomerates, Sinar Mas • Merger will create scale and synergies, additionally allowing for ra
Slide 13: XLSmart will have a top-notch Board of Directors
XLSmart will have a top-notch Board of Directors Directors, each with more than 20 years of experience drawn equally from the ranks of both Axiata and Sinar Mas Rajeev Sethi President Director & Chief Executive Officer a? David Arcelus O: Director & Chief Commercial Officer Andrijanto Muljono Direct
Slide 14: Benefits for shareholders, country, customers and employees
+ Shareholders Country Customers Employees • Creation of a strong telco • Shared commitment to • Improved service quality and • Opportunity to work for a with greater ability to compete advance Indonesia’s digital customer experience from stronger and more aspirations and support • Improve sharehold
Slide 15: Key merger rationale
i) XLSmart has greater scale and is commercially stronger ii) Synergistic value and operational efficiencies iii) Local partnership and strong ecosystem support from shareholders iv) Financial resilience and improved returns
Slide 16: XLSmart pro-forma FY24 combined metrics
Standalone Pro-forma (FY24) (FY24) XLSmart Mobile subscribers ~58.8m ~35.5m ~94.3m Revenue (IDR tn) 34.4 11.4 45.8 Market share (%) 19%1 6%1 25%1 EBITDA (IDR tn) 17.9 4.6 22.5 Margin (%) 52.0% 40.0% 49.0% 1. Based off FY24 mobile revenue, except for Telkomsel (Q3’24) Note: Numbers may not add up due
Slide 17: Telco spectrum holdings and opportunities for XLSmart
Opportunities for XLSmart: Telco spectrum holdings (MHz): 165 152 • XLSmart has the most 50 135 efficient spectrum structure 40 to compete against other 50 telcos on an equal footing 90 30 40 • Larger spectrum holdings will 30 62 improve coverage and 45 60 45 network capacity, thereby 45 40 raising
Slide 18: Synergy key initiatives by function
Function Key initiatives Network footprint optimization : decommission 20-30% of sites from overlapped footprint Network and IT Targeted network expansion : selectively invest in targeted cities with a focus on profitability Procurement Vendor negotiation : leverage volume and price book matching to
Slide 19: Leading telecommunication and digital group; top Indonesian diversified group
Further synergy with wider ecosystem of companies of joint-controlling Leading telecommunication and Top Indonesian diversified group shareholders: digital group with businesses across key sectors, bringing in deep market knowledge and • ADA: Boost A2P, Big Data, AI and with presence over 9 countrie
Slide 20: Axiata and Sinar Mas track records
Axiata’s has a proven track record of in-country telco …while Sinar Mas’ is the go-to Indonesian partner consolidation and integration… with a history of successful JVs with international names Indonesia Sri Lanka Tech / Tech-adjacent Real estate / Infrastructure Bangladesh Cambodia Financial Energy
Slide 21: Integration priorities: people, network, service, customer experience
People Network Service Customer Network development optimization improvement experience and IT enhancement ● Ensure effective onboarding ● Deliver superior network ● Strengthen and simplify product ● Create best in class customer ● Reduction of hardware and and engagement coverage and quality portfo
Slide 22: Indonesia ARPU remains behind regional peers
Indonesia ARPU as a % of GDP/capita remains behind regional peers ARPU increases when the market consolidates ARPU1 as % of GDP per capita, 2023 (%): Market blended ARPU (IDR k): 2013-14 Indonesia 0.6% +4.3% Malaysia 0.8% 30 30 32 33 Philippines 0.8% 2013 2014 2015 2016 2021-22 India 0.9% Thailand 1
Slide 23: Home broadband and Enterprise ICT opportunities
Home: Opportunity to grow household Enterprise ICT: Digital transformation acceleration across enterprises in broadband penetration to meet peers Indonesia driving opportunities for enterprise solutions Fixed broadband household penetration (%): Telco-addressable Enterprise ICT Key trends in the Ind
Slide 24: Compelling rationale for the strategic merger
Compelling rationale for 1 the strategic merger 2 Execution teams mobilized 3 Leadership commitment • XLSmart has greater scale and is • XLSmart is highly confident in realizing • Axiata has a proven track record in in- commercially stronger an annual run rate pre-tax synergies of market consolidati
Slide 25: Thank You!
12/03/2025 Thank You! XL axiata 25