SK Telecom Co., Ltd. · KRX:017670

SK Telecom — Q1 2013 Earnings Presentation

15 slides from SK Telecom's earnings presentation, May 2, 2013

  1. Slide 1: Results for the Quarter Ended March 31, 2013

    Results for the Quarter Ended March 31, 2013 K-IFRS , Non-audited May 2nd, 2013 0

  2. Slide 2: Disclaimer

    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 management of the Company. Statements that are not historical facts, including s

  3. Slide 3: Table of Contents

    Table of Contents Financial Results 3 Operating Results (Non-consolidated) 7 Appendix 10 IR Contacts 14 2

  4. Slide 4: Financial Results: Summary of Income Statement (Consolidated)

    Financial Results  Summary of Income Statement (Consolidated) (KRW bn) Q1 '13 Q1 '12 YoY Q1 '13 Q4 '12 QoQ  Operating revenues: SK Telecom (“SKT” or the Operating revenue 4,113 3,970 143 4,113 4,197 (85) “Company”) recorded a 2% QoQ decrease due to the Operating expenses 3,702 3,470 232 3,702 3,65

  5. Slide 5: Financial Results: Operating Expenses (Consolidated)

    Financial Results  Operating Expenses (Consolidated) (KRW bn) Q1 '13 Q1 '12 YoY Q1 '13 Q4 '12 QoQ  Labor costs: Increased YoY due to the increase in Labor cost 449 356 93 449 325 123 employees as a result of the SK M&C‟s merger with SK Commissions paid 1,451 1,415 36 1,451 1,470 (19) Planet. This,

  6. Slide 6: Financial Results: Balance Sheet (Consolidated)

    Financial Results  Balance Sheet (Consolidated) (KRW bn) Q1 '13 Q1 '12 YoY Q1 '13 Q4 '12 QoQ Assets Total assets 25,409 26,547 (1,138) 25,409 25,596 (187)  Current assets: Decreased 9% YoY as SKT‟s debt repayment Current assets 5,082 5,556 (474) 5,082 5,294 (213) reduced cash. Sale of Paxnet and S

  7. Slide 7: SK Telecom's Operating Revenues (Non-consolidated)

    Financial Results  SK Telecom’s Operating Revenues (Non-consolidated) (KRW bn) Q1 '13 Q1 '12 YoY Q1 '13 Q4 '12 QoQ  1Q13 total operating revenues increased 3.5% YoY, led Mobile service revenue 2,727 2,621 106 2,727 2,782 (55) by the growth of LTE subscribers and increased new Interconnection reven

  8. Slide 8: Operating Results: ARPU

    Operating Results (Non-consolidated)  ARPU 1) ARPU (KRW) Q1 '13 Q1 '12 YoY Q1 '13 Q4 '12 QoQ  1Q13 billing ARPU increased KRW 1,423 YoY, 4.4%, led Total ARPU 40,450 39,136 1,314 40,450 41,171 (721) by the growth of LTE subscribers Billing ARPU2) 33,668 32,245 1,423 33,668 33,761 (93) 1) Includes S

  9. Slide 9: Operating Results: Subscriber Numbers

    Operating Results (Non-consolidated)  Subscriber Numbers Q1 '13 Q1 '12 YoY Q1 '13 Q4 '12 QoQ  Total subscribers exceeded 27m as of 1Q13 Subscribers ('000) 27,030 26,556 473 27,030 26,961 68 Net adds 68 4 64 68 183 (115)  Despite the intense market competition in 1Q13, the Activations 2,013 1,983

  10. Slide 10: Operating Results: Marketing Expenses & Capex

    Operating Results (Non-consolidated)  Marketing Expenses & Capex (KRW bn) Q1 '13 Q1 '12 YoY Q1 '13 Q4 '12 QoQ  Marketing expenses rose 25% YoY, and 20% QoQ due 1) Marketing expenses 907 725 181 907 754 153 to the heated LTE market competition. As of mid- % of revenue 29.1% 24.1% 5.0%p 29.1% 23.9%

  11. Slide 11: Appendix: Consolidated Income Statement

    Appendix  Consolidated Income Statement (KRW bn) Q1 '12 Q2 '12 Q3 '12 Q4 '12 Q1 '13 Operating revenue 3,969.7 4,007.9 4,125.5 4,197.4 4,112.6 Operating expenses 3,470.4 3,592.3 3,824.8 3,652.8 3,702.0 Labor cost 355.5 292.9 309.4 325.5 448.6 Commissions paid 1,414.5 1,548.2 1,592.9 1,469.5 1,450.8

  12. Slide 12: Appendix: Non-consolidated Income Statement

    Appendix  SK Telecom Non-consolidated Income Statement (KRW bn) Q1 '12 Q2 '12 Q3 '12 Q4 '12 Q1 '13 Operating revenue 3,007.4 3,068.6 3,097.5 3,159.2 3,112.1 Operating expenses 2,524.8 2,675.3 2,847.9 2,609.3 2,692.0 Labor cost 174.8 123.6 118.6 115.0 205.3 Commissions paid 1,266.3 1,444.7 1,559.2 1

  13. Slide 13: Appendix: Consolidated Balance Sheet

    Appendix  Consolidated Balance Sheet (KRW bn) Q1 '12 Q2 '12 Q3 '12 Q4 '12 Q1 '13 Total assets 26,546.9 25,773.4 26,057.9 25,595.6 25,408.8 Current assets 5,555.7 4,754.4 5,442.5 5,294.4 5,081.7 Cash and marketable securities1) 2,456.9 1,698.6 1,687.6 1,444.5 1,493.0 Accounts receivable 2,485.8 2,45

  14. Slide 14: Appendix: Non-consolidated Balance Sheet

    Appendix  SK Telecom Non-consolidated Balance Sheet (KRW bn) Q1 '12 Q2 '12 Q3 '12 Q4 '12 Q1 '13 Total assets 23,106.7 22,271.9 22,526.5 22,249.5 22,391.5 Current assets 3,615.3 2,590.2 3,187.6 2,589.7 2,765.8 Cash and marketable securities1) 1,488.7 546.4 544.0 445.9 631.3 Accounts receivable 1,814

  15. Slide 15: IR Contacts

    IR Contacts Dong Seop Kim (82-2-6100-1464, sunson@sk.com) Seung Oh Yoon (82-2-6100-1632, monsta@sk.com) Jae Bum Park (82-2-6100-1660, jb.park@sk.com) Won Tuh Chung (82-2-6100-1550, wt.chung@sk.com) Woo Sun Cho (82-2-6100-1638, woosun.cho@sk.com) Jung Hyun Kim (82-2-6100-1582, jane.kim@sk.com) 14

SK Telecom — Q1 2013 Earnings Presentation on 6ix