Sk Telecom Co., Ltd. · KRX:017670

Sk Telecom — Investor Presentation (February 2005)

13 slides from Sk Telecom's investor presentation, February 2005

  1. Slide 1: Investor Presentation

    Investor Presentation February 2005 This material has been prepared by SK Telecom for the information of investors of the company. This is not intended as an offer or solicitation for the purchase or sale of any financial instrument or securities. While reasonable care bas been taken to ensure that

  2. Slide 2: Discussion Topics

    Discussion Topics I. Korea Wireless Industry II. 2004 Results and 2005 Outlook III. Growth Strategy IV. Commitment to Shareholders 1

  3. Slide 3: I. Korea Wireless Industry

    I. Korea Wireless Industry 2

  4. Slide 4: I-1. Korean Telecommunications Market

    I - 1. Korean Telecommunications Market Mobile Telecommunications Market Trend Wireless Data Market Trend (’000s) (KRW bn) 75.9% 70.1% 67.9% 2,573 61.2% % 56.9% 36,586 85 32,342 33,592 A GR C 1,829 29,047 yr 26,816 5 1,133 548 234 2000 2001 2002 2003 2004 2000 2001 2002 2003 2004 Subscribers Penetra

  5. Slide 5: I-2. Competitive Landscape

    I - 2. Competitive Landscape Market Share ARPU (1) (KRW ) LGT 43,509 16.6% SKT 40,617 38,319 KTF 51.3% 32.1% SKT KTF LGT Revenue (2) Net Income (KRW Bn) (KRW Bn) 1,495 9,704 4,589 2,285 284 23 SKT KTF LGT SKT KTF LGT •All data as of year end 2004 4 1) Average ARPU of 4Q 2004 (excluding sign-up fee a

  6. Slide 6: II. 2004 Results and 2005 Guidance

    II. 2004 Results and 2005 Guidance 5

  7. Slide 7: II-1. Challenges in 2004

    II - 1. Challenges in 2004 Mobile Number Portability ƒ In January 2004, first phase of MNP commenced in time delayed manner which provided LGT and KTF with an opportunity to gain market share ƒ Competitors engaged in aggressive marketing campaigns to expand market share, compelling SKT to counter wi

  8. Slide 8: II-2. 2004 Results and 2005 Guidance

    II - 2. 2004 Results and 2005 Guidance 2004 2004 2003 YoY 2005 Target Results Results Growth Target (Unit: KRW billion unless noted) Revenue 9,800 9,704 9,520 1.9 % 10,000 Wireless Internet to Sales Ratio1) 20.0% 20.6 % 15.5 % 5.1 %p 24.0% Net Income N/A 1,495 1,943 (23.1%) N/A EBITDA Margin2) 42.0%

  9. Slide 9: II-3. Revenue Drivers: Wireless Data

    II - 3. Revenue Drivers: Wireless Data Wireless Data Revenue 2004 Review Breakdown ƒ Wireless internet revenue accounted for greater than 20% of cellular revenue (KRW Bn) ƒ Growth driven by: 24.0% – Higher penetration of high-end handsets (June® subscriber number reaching 3.6MM) 20.6% – Unlimited da

  10. Slide 10: II-4. Marketing Expense

    II - 4. Marketing Expense Marketing Expense 2004 Review ƒ Marketing expenditure amounted to 19.2% of total sales, 0.8% below 2004 guidance (KRW Bn) 18.8% 19.2% 18.5% ƒ Marketing expenditure stabilized through the 16.6% following efforts: – Self imposed market share control of 52.3%* 1,860 1,850 – Cl

  11. Slide 11: II-5. EBITDA Margin

    II - 5. EBITDA Margin EBITDA Margins 2004 Review ƒ 2004 EBITDA margin was 41.8% ƒ EBITDA margin declined on an YoY basis due to: Initiation of MNP – Increased marketing expenses under the MNP environment Interconnection – Asymmetric interconnection rate adjustments 48.6% 49.3% Rate Adjustments – Tar

  12. Slide 12: III. Growth Strategy

    III. Growth Strategy 11

  13. Slide 13: III-1. Growth Strategy

    III - 1. Growth Strategy ƒ Invest in business models where SKT can best leverage its core competencies ƒ Pursue global operation business on top of exports for sustainable growth ƒ Minimize risk exposure through Win-Win partnerships with local operators 12

SK Telecom — Investor Presentation (February 2005) on 6ix