Sk Telecom Co., Ltd. · KRX:017670
Sk Telecom — Non-Deal Roadshow (June 2004)
22 slides from Sk Telecom's roadshow presentation, June 2004
Slide 1: Korean Corporate Global Roadshow
The Federation of Korean Industries Korean Corporate Global Roadshow June 2004
Slide 2: Disclaimer
Disclaimer This presentation contains certain "forward looking statements". These forward looking statements include words or phrases such as SK Telecom or its management "believes", "expects", "anticipates", "intends", "plans", "foresees", or other words or phrases of similar import. Similarly, sta
Slide 3: Discussion Topics
Discussion Topics Strong Performance Global leader in 3G CDMA with strong performance across the board Growth Re-engaging exciting growth opportunities Story Regulatory Environment Impact from regulatory developments will be minimal Corporate SKT remains focused on world-class corporate gove
Slide 4: Record of Strong Performance
Record of Strong Performance
Slide 5: SK Telecom
SK Telecom Corporate Profile Summary Financial Data (Unit: KRW Bn) Dominant mobile telecom and wireless data Total Assets 13,415 service operator in Korea Largest domestic market share of 52% with a subscriber base of 18.5 million Total Debt 4,117 Superior financial performance with Korea’s Sh
Slide 6: Summary of 2004 1Q Results
Summary of 2004 1Q Results (Unit : KRW Bn unless noted) 2004 Target 2004 1Q On Track Subscriber (1000 persons) 18,800 18,439 3 Revenue 10,200 2,401 3 EBITDA* (Margin) 4,794 (47%) 1,063 (44.3%) 3 ARPU (Won) 46,000 43,623 3 Wireless data revenue (% of cellular revenue) 2,040 (20%) 392 (18.1%) 3 Market
Slide 7: A Clear Market Leader
A Clear Market Leader SKT KTF LGT Revenue (KRW Bn) 2,401 1,062 488 EBITDA Margin 44.3% 34% 15.2% ARPU (Won) 43,623 38,069 34,351 MOU 195 164 143 Subscribers (‘000) 18,499 11,519 5,546 Market Share 52.0% 32.4% 15.6% Wireless Data Revenue (% of cellular revenue) 18.1% 13.5% 6.8% 7 Source: SKT, KTF, LG
Slide 8: Continuing Growth Opportunities
Continuing Growth Opportunities
Slide 9: Attractive Korean Wireless Market
Attractive Korean Wireless Market Wireless Penetration Market Attributes (%) Leading wireless market with penetration expected to reach 75% in 2004 and still more 88. 7% room to grow 82. 7% 75. 0% 69. 8% 67. 7% Increasing penetration of wireless Internet 61. 2% 57. 0% with heavy usage of premium
Slide 10: Cementing Leadership in Wireless Data
Cementing Leadership in Wireless Data Wireless Data Revenue Trend EV-DO Market Share (KRW Bn) Bn) KTF ase 27% r e inc 392 % SKT : 48 73% T SK Market share as of March 31, 2004 265 EV-DO ARPU Comparison (KRW) 55, 304 48, 624 114 82 15, 658 12, 723 26 33 1Q03 1Q04 SKT KTF SKT KTF LGT Tot al ARPU Dat a
Slide 11: ARPU Growth Potential
ARPU Growth Potential Subscribers by Handset Type ARPU by Handset Type (%) (KRW) 18, 313 18, 499 Data ARPU Total ARPU 17, 857 18, 019 17, 365 17, 628 1.3% 3.4% 8.1% 14.0% 61,089 19.4% 26.9% June 19,102 48,362 58.9% EV-DO 60.6% 10,258 61.9% 61.5% 60.0% 58.3% 36,731 1x RTT 4,547 39.8% 36.0% 23,495 30.
Slide 12: Sustainable High ARPU from June
Sustainable High ARPU from June® (KRW, ’000 Persons) 2,319 2,100 1,905 1,678 1,504 1,385 113,313 1,243 94,555 ARPU Stabilizing 82,170 81,871 78,537 76,174 72,736 70,280 68,694 67,845 65,480 65,480 63,904 60,617 61,089 124 51,401 22,848 34,586 26,963 28,421 26,268 23,448 23,298 23,102 23,670 22,811 2
Slide 13: Increasing Portion of Data Revenue
Increasing Portion of Data Revenue Wireless Data Revenue Wireless Data Revenue Breakdown (KRW Bn) Bn) (KRW Bn) Bn) 392 18.1% 3% 12 392 29% 115 13.4% 265 6% 16 265 30% 79 7.6% 127 68% 265 127 6% 8 42% 53 170 64% 52% 66 1Q02 1Q03 1Q04 1Q02 1Q03 1Q04 Nate / June SMS Others Source: Company data 13
Slide 14: Preparing For New Business Opportunities
Preparing For New Business Opportunities Improve Profitability New Growth Momentum Value creation in network business Enter new convergence market Capitalize Value added service on core Voice Broadcasting offerings competences Telecom Wireless Internet Strengthen existing BM Finance Commerce New wir
Slide 15: Implementing New Growth Strategies
Implementing New Growth Strategies Investment in TU Media Mobile and Japan MBCO handsets Operating synergies and Satellite DMB cost reductions Automobile Profit sharing from equity investments Mobile Cash Card Convergence of Banking telecommunication and New Growth Financial finance Momentum
Slide 16: Regulatory Environment
Regulatory Environment SK Telecom
Slide 17: Regulatory Environment
Regulatory Environment Effective rate cut from CID fee reduction and contract-based discount packages Tariff Cut Competitors may not be able to sustain additional tariff cuts Magnitude of tariff cuts, if any, will be limited New interconnection settlement will be made based on LRIC Interconn
Slide 18: Declining Mobile Number Portability Impact
Declining Mobile Number Portability Impact Product High quality services Differentiation Enhanced wireless Internet services (June and MMS) Price Price gap not significant Competitiveness Efforts to eliminate perception of price gap Strong Brand Leadership in wireless market Reputation Ove
Slide 19: Enhancing Corporate Governance
Enhancing Corporate Governance
Slide 20: Corporate Governance
Corporate Governance Secured transparent transaction Announced transaction policy with SK system with SK Group companies Group companies to maintain transparency Additional sub-committees Established sub-committees to review established capex & decide on management compensation Reorganization of
Slide 21: Investment Highlights
Investment Highlights Strong Performance Global leader in 3G CDMA with strong performance across the board Growth Re-engaging exciting growth opportunities Story Regulatory Environment Impact from regulatory developments will be minimal Corporate SKT remains focused on world-class corporate
Slide 22: The End
SK Telecom