SK Telecom Co., Ltd. · KRX:017670

SK Telecom — FY2013 Earnings Presentation

14 slides from SK Telecom's earnings presentation, Jan 28, 2014

  1. Slide 1: Results for the Year Ended December 31, 2013

    Results for the Year Ended December 31, 2013 January 28th, 2014 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) 6 Appendix 9 2

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

    Financial Results  Summary of Income Statement (Consolidated) (KRW bn) 2013 2012 YoY 4Q13 3Q13 QoQ  SK Telecom (“SKT” or the “Company”) operating Operating revenue 16,602 16,141 461 2.9% 4,295 4,125 170 4.1% revenues recorded a 2.9% YoY increase led by the Operating expenses 14,591 14,411 180 1.2%

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

    Financial Results  Operating Expenses (Consolidated) (KRW bn) 2013 2012 YoY 4Q13 3Q13 QoQ  Labor costs increased 23.1% YoY as a result of the SK Labor cost 1,561 1,268 293 23.1% 395 363 32 8.7% M&C’s merger with SK Planet and increased number of Commissions paid 5,499 5,950 (451) -7.6% 1,366 1,350

  6. Slide 6: SK Telecom's Operating Revenues (Non-consolidated)

    Financial Results  SK Telecom’s Operating Revenues (Non-consolidated) (KRW bn) 2013 2012 YoY 4Q13 3Q13 QoQ  Total operating revenues increased 4.3% YoY led by LTE Total operating revenue 12,860 12,333 528 4.3% 3,316 3,223 93 2.9% subscriber growth and increased new business-related Mobile service

  7. Slide 7: Operating Results: ARPU

    Operating Results (Non-consolidated)  ARPU ARPU1) (KRW) 2013 2012 YoY 4Q13 3Q13 QoQ  Annual billing ARPU increased 4.6% YoY led by the Total ARPU 42,377 40,128 2,250 5.6% 44,448 42,780 1,668 3.9% Billing ARPU2) 34,551 33,016 1,535 4.6% 35,650 34,909 741 2.1% growth of LTE subscribers. Quarterly bi

  8. Slide 8: Operating Results: Subscriber Numbers

    Operating Results (Non-consolidated)  Subscriber Numbers YoY QoQ 2013 2012 4Q13 3Q13  The churn rate fell further to 2.1% in 4Q13, lowering Subscribers ('000) 27,352 26,961 391 1.5% 27,352 27,211 142 0.5% Net adds 391 409 (18) -4.3% 142 71 71 100.2% the annual average to 2.3% Activations 7,755 8,6

  9. Slide 9: Marketing Expenses & Capex

    Operating Results (Non-consolidated)  Marketing Expenses & Capex (KRW bn) 2013 2012 YoY 4Q13 3Q13 QoQ  Annual marketing expenses decreased 1.3% YoY as the Marketing expenses1) 3,428 3,474 (46) -1.3% 842 827 15 1.8% Company’s focus on retention reduces market % of revenues 26.7% 28.2% -1.5%p 25.4%

  10. Slide 10: Consolidated Income Statement

    Appendix  Consolidated Income Statement (KRW bn) 1Q12 2Q12 3Q12 4Q12 FY12 1Q13 2Q13 3Q13 4Q13 FY13 Operating revenue 3,932.9 3,968.4 4,084.4 4,155.7 16,141.4 4,065.7 4,117.0 4,124.6 4,294.8 16,602.1 Operating expenses 3,441.7 3,561.2 3,791.7 3,616.7 14,411.4 3,661.1 3,571.5 3,573.2 3,785.1 14,590.9

  11. Slide 11: SK Telecom Non-consolidated Income Statement

    Appendix  SK Telecom Non-consolidated Income Statement (KRW bn) 1Q12 2Q12 3Q12 4Q12 FY12 1Q13 2Q13 3Q13 4Q13 FY13 Operating revenue 3,007.4 3,068.6 3,097.5 3,159.2 12,332.7 3,112.1 3,209.1 3,222.9 3,316.3 12,860.4 Operating expenses 2,524.8 2,675.3 2,847.9 2,609.3 10,657.3 2,692.0 2,676.8 2,685.7 2

  12. Slide 12: Consolidated Balance Sheet

    Appendix  Consolidated Balance Sheet (KRW bn) 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 Total assets 26,546.9 25,773.4 26,058.5 25,595.6 25,408.8 25,436.4 25,933.5 26,608.1 Current assets 5,555.7 4,754.4 5,443.2 5,294.4 5,081.7 5,230.7 5,381.6 5,155.0 Cash and marketable securities 1) 2,456.9 1,698.6

  13. Slide 13: SK Telecom Non-consolidated Balance Sheet

    Appendix  SK Telecom Non-consolidated Balance Sheet (KRW bn ) 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 3Q13 4Q13 Total assets 23,106.7 22,271.9 22,526.5 22,249.5 22,391.5 22,147.4 22,416.2 22,827.4 Current assets 3,615.3 2,590.2 3,187.6 2,589.7 2,765.8 2,809.9 2,956.8 2,817.8 Cash and marketable securities 1)

  14. Slide 14: 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) 13

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