Sk Telecom Co., Ltd. · KRX:017670

Sk Telecom — Investor Presentation (November 2013)

15 slides from Sk Telecom's investor presentation, November 2013

  1. Slide 1: Investor Presentation November 2013

    APCPCWM_4828539:WP_GLOBAL_PFWP_GLOBAL_PF APCPCWM_4828539:WP_GLOBAL_PFWP_GLOBAL_P Investor Presentation November 2013

  2. Slide 2: Disclaimer

    APCPCWM_4828539:WP_GLOBAL_PFWP_GLOBAL_PF APCPCWM_4828539:WP_GLOBAL_PFWP_GLOBAL_P Disclaimer This material contains forward-looking statements with respect to the financial condition, results of operations and business of SK Telecom and its subsidiaries (the “Company”) and plans and objectives of the

  3. Slide 3: Table of Contents

    APCPCWM_4828539:WP_GLOBAL_PFWP_GLOBAL_PF APCPCWM_4828539:WP_GLOBAL_PFWP_GLOBAL_P Table of Contents Key Takeaways 3 Operating Results 8 Financial Results 11 Shareholder Return 14 2

  4. Slide 4: Key Takeaways: LTE Advanced & Wideband LTE

    APCPCWM_4828539:WP_GLOBAL_PFWP_GLOBAL_PF APCPCWM_4828539:WP_GLOBAL_PFWP_GLOBAL_P Key Takeaways LTE Advanced & Wideband LTE Š Launched world’s first LTE-Advanced (“LTE-A”) and Wideband LTE networks Fast data speed SKT’s Competitive Edge “LTE-A” Offers maximum speed of 150Mbps “SKT offers utilizing CA

  5. Slide 5: Key Takeaways: LTE Advanced & Wideband LTE Rollout

    APCPCWM_4828539:WP_GLOBAL_PFWP_GLOBAL_PF APCPCWM_4828539:WP_GLOBAL_PFWP_GLOBAL_P Key Takeaways LTE Advanced & Wideband LTE Rollout Š Multi-layered LTE networks offer solid reliability and optimal cost-efficiency LTE Rollout Schedule The Most Cost-efficient Network “Network integration and efficient

  6. Slide 6: Key Takeaways: Price plan evolution for data-era

    APCPCWM_4828539:WP_GLOBAL_PFWP_GLOBAL_PF APCPCWM_4828539:WP_GLOBAL_PFWP_GLOBAL_P Key Takeaways Price plan evolution for data-era Š Leading the industry wide transition to data-centric price plans Transition to Data Centric Price Plan Growth of MNO “ARPU growth” z Bucket plans (3G, LTE) z Data gift/s

  7. Slide 7: Key Takeaways: Marketing paradigm shift

    APCPCWM_4828539:WP_GLOBAL_PFWP_GLOBAL_PF APCPCWM_4828539:WP_GLOBAL_PFWP_GLOBAL_P Key Takeaways Marketing paradigm shift Š Service oriented marketing paradigm shift generating positive results Maximizing Customer Value Improving Mobile Operating Environment “Churn rate decreasing” “Active retention o

  8. Slide 8: Key Takeaways: Growth Businesses

    APCPCWM_4828539:WP_GLOBAL_PFWP_GLOBAL_PF APCPCWM_4828539:WP_GLOBAL_PFWP_GLOBAL_P Key Takeaways Growth Businesses Š SKT’s growth engines include Platform, B2B Solution, Media and Healthcare businesses SK Planet B2B Solutions Healthcare SK Broadband • Revenues reached KRW115bn in 3Q13, KRW306bn YTD 3Q

  9. Slide 9: Operating Results: Subscriber Numbers

    APCPCWM_4828539:WP_GLOBAL_PFWP_GLOBAL_PF APCPCWM_4828539:WP_GLOBAL_PFWP_GLOBAL_P Operating Results Š Subscriber Numbers 3Q13 3Q12 YoY 2Q13 QoQ z The churn rate recorded 2.25% in 3Q13 as a result of Subscribers ('000) 27,211 26,778 433 1.6% 27,140 71 0.3% Net adds 71 119 (48) -40.4% 110 (39) -35.6% t

  10. Slide 10: Operating Results: Operating Revenues (Non-consolidated)

    APCPCWM_4828539:WP_GLOBAL_PFWP_GLOBAL_PF APCPCWM_4828539:WP_GLOBAL_PFWP_GLOBAL_P Operating Results Š SK Telecom’s Operating Revenues (Non-consolidated) (KRW bn) 3Q13 3Q12 YoY 2Q13 QoQ z 3Q13 total operating revenues increased 4.0% YoY and Total operating revenue 3,223 3,097 125 4.0% 3,209 14 0.4% 0.

  11. Slide 11: Operating Results: Marketing Expenses & Capex

    APCPCWM_4828539:WP_GLOBAL_PFWP_GLOBAL_PF APCPCWM_4828539:WP_GLOBAL_PFWP_GLOBAL_P Operating Results Š Marketing Expenses & Capex (Non-consolidated) (KRW bn) 3Q13 3Q12 YoY 2Q13 QoQ z Marketing expenses is trending down as the Company’s Marketing expenses1) 827 1,035 (208) -20.1% 853 (26) -3.0% % of re

  12. Slide 12: Financial Results: Summary of Income Statement

    APCPCWM_4828539:WP_GLOBAL_PFWP_GLOBAL_PF APCPCWM_4828539:WP_GLOBAL_PFWP_GLOBAL_P Financial Results Š Summary of Income Statement (Consolidated) (KRW bn) 3Q13 3Q12 YoY 2Q13 QoQ z Operating revenues: SK Telecom (“SKT” or the Operating revenue 4,125 4,084 40 1.0% 4,117 8 0.2% “Company”) recorded 1.0% Y

  13. Slide 13: Financial Results: Operating Expenses (Consolidated)

    APCPCWM_4828539:WP_GLOBAL_PFWP_GLOBAL_PF APCPCWM_4828539:WP_GLOBAL_PFWP_GLOBAL_P Financial Results Š Operating Expenses (Consolidated) (KRW bn) 3Q13 3Q12 YoY 2Q13 QoQ z Labor costs: Increased 19.0% YoY as a result of the SK Labor cost 363 305 58 19.0% 359 4 1.1% M&C’s merger with SK Planet Commissio

  14. Slide 14: Financial Results: Balance Sheet (Consolidated)

    APCPCWM_4828539:WP_GLOBAL_PFWP_GLOBAL_PF APCPCWM_4828539:WP_GLOBAL_PFWP_GLOBAL_P Financial Results Š Balance Sheet (Consolidated) (KRW bn) 3Q13 3Q12 YoY 2Q13 QoQ Assets Total assets 25,933 26,058 (125) -0.5% 25,436 497 2.0% Current assets 5,382 5,443 (62) -1.1% 5,231 151 2.9% z Current assets: Decre

  15. Slide 15: Shareholder Return

    APCPCWM_4828539:WP_GLOBAL_PFWP_GLOBAL_PF APCPCWM_4828539:WP_GLOBAL_PFWP_GLOBAL_P Shareholder Return Š Maintain strong shareholder return policy ‘07 ‘08 ‘09 ‘10 ‘11 ‘12 z Paid annual cash dividend of KRW 9,400/share Dividend Policy DPS since 2007 including interim dividend of KRW Cash Dividend 1,000/

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