Slide 1: SK Telecom Results for FY2000
SK Telecom Results for FY2000 2001. 2.16
Slide 2: FY2000 Earnings Results
FY2000 Earnings Results
Slide 3: FY2000 Income Statement and Balance Sheet Summary
se Jan-Dec Jan-Dec % of % of (KRW billion) 00 99 Change 4Q 00 3Q 00 Change Revenue 5,761 4,285 34% 1,440 1,433 0.5% Operating Expenses 4,125 3,996 3% 940 888 6% Operating Income 1,636 289 466% 500 545 8% Non Operating Incorne 184 429 -57% 67 28 139% Non Operating Expenses 459 245 87% 175 121 45% Ord
Slide 4: Revenue breakdown
Ea (KRW billion) Bae 5,761 118 5,000 > 1,142 4,285 Cz 260 4000 5 3,545 801 we 3,000 129 2,000 F 1,000 + 0 f fl 1993 1999 2000 = Cellular Interconn. Paging & Others @ Data service Cellular revenue for FY2000 increased by 40% over the year. 1) Increased the average number of subscribers (7.830.000 — 1
Slide 5: Operating expenses increased by 3% in 2000
Operating expenses increased by 3% to #4,125 bn in 2000 from 3,996 bn in 1999. Marketing expenses for the FY2000 include: - Cellular commission: # 999 billion (including handset subsidies of # 666.8 billion) - Paging commission: # 20 billion - Retention commission: # 163 billion - Netsgo: # 7 billio
Slide 6: Interconnection Revenue/Cost
Interconnection Revenue/Cost (KRW million) Calculation Formula of Interconn. Fee 1,200,000 1,141,780 (KRW per Min)}2001(E)} 2000 | 1999 | 1998 {000000 + Lto M 63.59 | 68.94 | 100.14] 108.0 MtoL 16.64 | 16.62 15.6 15.6 MtoM 63.59 | 68.94 > > 801,042 800,000 + 729.379 Breakdown of Interconn. Revenue &
Slide 7: Non-Operating Income/Expenses
Non-Operating Income/Expenses 500 400 t Nor-operating income (KRW billion) r -245 Md 459 | 1998 1999 2000 Non-operating expense Non operating income decreased by 57% compared with that of 1999, due to the downturn of the interest rate and the decrease of the principal. Non operating expenses increas
Slide 8: EBITDA & Capex
EBITDA & Capex (KRW Billion) m EBITDA increased 101% in comparison with 1999 2000 that of FY1999. 1,220 2,453 = Capex increased W793.3 bn in comparison with that of FY1999 due to 1) the extension of 95A/B------- W213 bn 2) 95C investment------------~ W401.6 bn 3) new building construction---W 126 bn
Slide 9: Investments & Shareholders' Equity
Investments & Shareholders Equity (KRW Bil) Shareholders’ Equity has sharply increased in April, mainly 7,000 5 due to the issuance of 6.5% shares of total equity to POSCO in return for 27.7% stake of Shinsegi Telecom 6,000 + 5,966 1) Issue price per share : W 286,000 2) Number of shares issued : 5,
Slide 10: Debt and debt structure
(KRW Billion) 2,000 1,800 1,600 1,400 1,200 1,000 800 600 1998 1999 2000 L1Total Debt --— Debt-Cap 70% 60% 50% 40% 30% 20% 10% 0% The Company's interest bearing debt increased by 15% due to the issuance of domestic corporate bond. (W800 bn) Corporate bond worth #800 billion in total with 8% annual I
Slide 11: FY2000 Operating Review
FY2000 Operating Review
Slide 12: Cellular Subscriber Trend
Cellular Subscriber Trend 13 12 (Mn) 11.98 r THEE a4 65 1127 bts "81147 44 (%) 7 410.94 1091 10.93 Jan 00 Feb0O MarO0 Aprod May0O Jun00 uid0 Augd0 Se000 OctO0 Nov 00 Dec 00 # of Cellular Subscribers = Churn Rate 5 As a result of continued efforts to lower our market share, and the ban on cellular ha
Slide 13: Cellular ARPU Trend
Cellular ARPU Trend (KRW) 50,000 - 331 co, a “ 2,761 3,897 308 294 Ss : ae | mp 2 dee = ee ee J 2,065 2,673 2 oo 2,870 2,938 2,187 3397 f { . 40,000 30,000 20,000 Jan 00 Feb0O Mar 00 Apr0O May 00 un QQ Judd Aug QO Sep. 00 OctOO Nov 00 Dec 00 = Usage Charge & Monthly Fee &L-M Interconnection Charge M
Slide 14: Call Traffic Trend
Call Traffic Trend % 100 m= = Call traffic volume related with wired line service continues to decline. BSIKT to Local BSKT to M AM to SKT 40 WSKT to SKT B Local to SKT Jan 00 Mar 00 May 00 Jul00 Sep 00 Oct00 = Dee 00 13
Slide 15: Collection Rate
Collection Rate 100% m Decrease in the number of marginal subscribers attributed to gradual increase of collection rate. = Collection rate continued to grow after the third quarter. 7.1% 97.17 OX 06 go, 96.7%96.7%96.7% m Asaresult, the average collection rate for the year was around 97% Jan Feb Mar
Slide 16: n.TOP Performance
n.TOP Performance (000) m = The number of deployed handsets came to 4,813,000 as of December 31 and those using the 5,000 - 4.813 service with flat rate plan were at 896,000, about 18.6% of the total number of handsets deployed. 4,500 + 4.238 7 F m ~=©The competitive edge of n. TOP can be 4,000 + 3,
Slide 17: n.TOP Performance-continued
n.TOP Performance-continued 250 4 4,500 . , mA total of 2,879 contents were being provided by )174 185 contents providers as of September 30 and y #000 a total of 4,174 contents by 231 providers as of December 31 m0 3,500 mAs of February 2001, the first two handset 3,000 models based on CDMA 1x netw
Slide 18: Shinsegi Telecom (STi)
Shinsegi Telecom ( STi)
Slide 19: Shinsegi Telecom financial results
(KRW Billion) vanes vanes % Change Revenue 2,054 1,860 10% Operating Expenses 1,879 1,/65 T% Operating Incorne 175 95 84% Non Operating Income 40 52 -22% Non Operating Expenses 155 139 12% Ordinary Income 59 7 701% Income Before Tax 60 8 659% Tax 20 3 648% Net Income 40 5 665% EBITDA 461 117 293% (K
Slide 20: Cellular Subscriber Trend - STi
Cellular Subscriber Trend - sn (Mn) (%) 5 5 10 = Due to efforts to meet market share reduction g requirements imposed by the FTC and ban on handset subsidies, STI’s subscriber 4 8 decreased by 545,000 since May of 2000. 47 m= Market share (in 2000 ) 13.5% in Jan. > 13.1% in Dec. 4 6 ; ; @ ~=Churn ra
Slide 21: Cellular ARPU Trend - STi
Cellular ARPU Trend - sti 40,000 - (KRW «ARPUCInitial commission excluded) seen stable H eEaE af fun a ” ¢« MOU sharply increased in December due ee = to efforts to churn marginal subscribers out 121 30,000 120 + 412 99 107 20,000 . 1Q00 2Q00 3Q00 4Q 00 = Sign-up Fee = MEM Interconnection Charge = C
Slide 22: Management Outcome in FY2000 - STi
Management Outcome in FY2000 - sti @ Fortifying core competencies - Better Quality of Call : Launched IS-95A Dual Roaming Service (1,181 Local Areas) - Strong Brand Power: Conducted roaming with SKT (2.8million subscribers) Increased wireless data sales (KRW 5bn) @ Building Blocks for the Future - I
Slide 23: SK Teletech
SK Teletech
Slide 24: Financial Highlights - SK Teletech
Financial Highlights -SkTeletech (KRW Million) 2000 Increase 1999 Income Statement Revenue 258,059 120% 117,135 Cost of Sales 214,620 125% 95,417 Gross Profit on Sales 43,439 100% 21,718 Operating Expenses 31,312 86% 16,851 Operating Income 12,127 149% 4,867 Non Operating Expenses/Income (1,372) - 1
Slide 25: Management Outcome in FY2000 - SK Teletech
Management Outcome in FY2000 - sktTeletech m Revenue of SK Teletech increased by120% : '99. 117 bn - '00. 258 bn KRW m@ “SKY” handset manufactured and sold by SK Teletech was awarded the “ Excellent Product” by the Korea Efficiency Association. In light of customer satisfaction and brand preference,
Slide 26: SK Telink
SK Telink
Slide 27: Financial Highlights - SK Telink
Financial Highlights - SK Telink (KRW Millions) 2000 Increase 1999 Income Statement Revenue 58,611 44% 40,659 Operating Expenses 45,687 30% 35,163 Operating Income(Loss) 12,924 135% 5,496 Non Operating Income(Loss) (150) -149% 307 Ordinary Income 12,774 120% 5,803 Tax 3,773 1,742 Net Income 9,001 12
Slide 28: SK Telink
Sk Telink ¢ SK Telink, an affiliate of SKT,provides mobile phone users with direct access to international calls, pre and post paid calling card services,and bundling services including local, long distance,international,fax, and mobile calls for corporate customers. ¢ Recorded outgoing calls of 1O0
Slide 29: Appendix
Appendix 28
Slide 30: Cellular sales and interconnection breakdown
(KRW million) 2000 1999 1998 Total Cellular Sales (exclud.Interconn.) 4,501,003 3,224,303 2,241,075 Initial Connection Fee 187,865 219,915 140,835 Monthly Payment 2,034,246 1,446,185 1,013,306 Usage Charges 2,702,651 1,781,030 1,105,783 Value-Added Service & Others 88,836 27,378 9,596 Sales Discount
Slide 31: Marketing Expenses Breakdown
Il. Marketing Expenses Breakdown (KRW million) 2000 1999 1998 Marketing Expenses 1,404,860 2,227,226 1,121,458 Cellular Initial Commission 92,931 157,185 71,897 Cellular Monthly Commission 239,492 153,417 109,745 Cellular handset subsidy Total 666,845 1,572,979 728,334 Celfular handset subsidy 665,5
Slide 32: Ratio Analysis
lil. Ratio Analysis 2000 1999 1998 Liability-Equity Ratio 51.8% 66.0% 176% Debt-Equity Ratio 28.5% 39.5% 134% Net Debt - Equity Ratio 7.8% 24.8% 55% Long-term Debt-Equity Ratio 18.4% 23.1% 94% Debt-Cap Ratio 22.2% 28.3% 58% Net Debt-Cap Ratio 6.1% 17.8% 36% ROA 10.5% 4.9% 4% ROE 15.9% 8.1% 10% Curre
Slide 33: Selected Operating Data
IV. Selected Operating Data 2000 1999 1998 Number of employees 4,672 6,692 5,445 IS-95A/B Subscriber Capacity(000) 19,600 13,055 9,687 IS-95C Subscriber Capacity('000) 2,500 - - Analog Cell Site - 1,057 1,317 IS-95A/B Cell Site 3,841 3,027 2,323 IS-95C Cell Site 635 . # Fiber Optic Transmitter 37,32