Investor Presentation. May 2010

Transcription

1 Investor Presentation May 2010

2 Disclaimer This presentation has been prepared by SK Telecom Co., Ltd. ( the Company ). This presentation is being presented solely for your information and is subject to change without notice. No representation or warranty, expressed or implied, is made and no reliance should be placed on the accuracy, fairness or completeness of the information presented. The Company, its affiliates, advisers or representatives accept no liability whatsoever for any losses arising from any information contained in the presentation. This presentation does not constitute an offer or invitation to purchase or subscribe for any shares of the Company, and no part of this presentation shall form the basis of or be relied upon in connection with any contract or commitment. The contents of this presentation may not be reproduced, redistributed or passed on, directly or indirectly, to any other person or published, in whole or in part, for any purpose. 2

3 Contents 1. Wireless market overview 2. Financial results 3. Growth strategy B2C business B2B business 4. Shareholder return 3

4 1. Wireless market overview 4

5 Overview of Korean wireless market Despite the Korean wireless market showing penetration rate over 100%, market itself is experiencing steady growth through the increase in wireless data market along with the rapid WCDMA subscriber base expansion Wireless market trend Wireless market s total revenue and data revenue (Units: Million, %) 75.9% 70.1% % % 83.2% % 98.3% 93.8% (Units: KRW Bn) 15,459 16,578 17,844 18,825 20,107 21,317 22, ,803 2,500 3,285 3,726 3,886 3,809 4, Q 2010 Total subscribers WCDMA subscribers Penetration ( Total revenue Total data revenue (1) Source: Company data Note: (1) SMS tariff cut 5

6 Competitive landscape SK Telecom continues to demonstrate undisputed market leadership Market share by subscribers (Units: 000s, %) Service revenue (Units: KRW Bn) Q 2010 LGT (Mobile) 17.9% SKT 50.7% 12,101 8,786 6,462 15,368 24,825 3,018 3,531 1,683 KT (Mobile) 31.4% 867 SKT KT (Mobile) LGT (Mobile) (1) Source: Company Data, as of March 31, 2010 Note: (1) Adopted K-IFRS, as of January 1,

7 2. Financial results 7

8 Financial results 1Q 2010 SK Telecom has shown a meaningful revenue growth YoY despite the tariff cut Operating income decreased YoY due to the market competition which led to a subscriber increase allowing 50.7% market share (KRW Bn) 1Q Q 2009 QoQ (%) 1Q 2009 YoY (%) Revenue 3,018 3, % 2, % Marketing Expense (Ratio to Revenue) 846 (28.0%) 807 (26.0%) 4.8% (2.0%p) 661 (23.0%) 28.0% (5.1%p) Operating Income % % EBITDA 975 1, % % Net Income % % Capital Expenditure % % 8

9 3. Growth strategy B2C business B2B business 9

10 B2C business Quantum jump in wireless data market Achieve a quantum jump in the wireless data market by leading the market s transformation into a open data business model Services Offer singular data price plans that cover multiple devices Singular price plan for multiple-device usage Target Data flat rate price plan 166% (Number of Subscriber) Handset (SmartPhone) Net Book Note Book PSP NDSL e-book MP3P PMP 3 mil. 3.5 mil. 5 mil. Voice/SMS Internet Game Book Multimedia Contents Open T-Store to Android market s and handset vendors Application stores T-Store Q % 10 mil. Individual application developers Handset vendor s application market Android market 0.5 mil. 0.7 mil Q

11 B2C business Quantum jump in wireless data market Lead the expansion of smartphone user base who are generating a higher level of data ARPU through the strengthened smartphone line-up and the reinforced network efficiency Target Device plans in 2010 (Number of Subscriber) Strengthen smartphone line-up by introducing devices embedded with various operating systems, i.e. Android, Windows Mobile, Symbian etc smartphones out of 55 new models - The majority will be Android-embedded Embed Wi-Fi function on 30 handsets Launch Non-DRM MP3 playable handsets Smartphone user 500% 2.5 mil. Networks Expand 3G capacity through WCDMA infra reinforcement and HSPA+ commercialization Establish Wi-Fi zones by utilizing broadband and Wibro networks Construct 10 thousand open Wi-Fi zones in areas with high customer needs primarily 0.5 mil. 0.7 mil Q The data ARPU of the recent popular smartphone users was approximately four times higher than that of feature phone users 11

12 B2B business IPE concept Promote a business model in which SKT supports the enhancement of other industries productivity, based on Smart & Green information and communication technology(ict) Business Model Industry A Industry B Industry C SKT s information and communication technology Share increased benefit together SK Telecom Pursue win-win strategies by collaborating with major players in other industries Support growth of not only the corporations but also the industry/public field as a whole, and share the increased benefits together 12

13 B2B business IPE strategy Implement IPE business in both domestic and overseas B2B markets by leveraging SKT s ICT assets Introduce IPE service to the global market by utilizing SK group s worldwide network SK Telecom s cutting-edge ICT based on Connectivity Vision Instrumented with Sensor : Strengthening functions of facilities, equipments and products by using transistors, sensors and RFID tags (SKT s B2B revenue) Interconnected with Network Intelligent with Computing : Establishing seamless mutual connections by combining mobile, fixed, local, and long distance networks : Embedding intelligence through software development and super-computing technologies KRW 1 tril. KRW 20 tril. Industry Domain Target Market Finance Healthcare Automobile Retail SME* Distribution Education Construction Domestic & Global Public Domain City Infrastructure Public Healthcare Public Education Become a leading global ICT company with B2B revenue of KRW 20 trillion *Note: * Small and Medium Enterprise 13

14 4. Shareholder return 14

15 Shareholder return Shareholder return is one of the most important values of SK Telecom s management % 21% 25% 35% 40% KRW 8,000 KRW 9,400 KRW 9,400 Cash dividend amount to be similar to * 2007* 2008* 2009 Payout ratio DPS Cash dividends Special cash dividends: 2004 (KRW 300 Bn), 2007 (KRW 100 Bn) Note: * Share buybacks (KRW 200 Bn), 2007 (KRW 118 Bn), 2008 (KRW 93 Bn) 15

16 Q & A 16