Sk Telecom Co., Ltd. · KRX:017670
Sk Telecom — Investor Presentation (August 2001)
17 slides from Sk Telecom's investor presentation, August 2001
Slide 1: SK Telecom
SK Telecom August, 2001
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation contains forward-looking statements with respect to the financial condition, results of operations and business of SK Telecom and plans and objectives of the management of SK Telecom. Statements that are not historical facts, including statements about SK
Slide 3: New Market through Segmentation
New Market through Segmentation Refined Refined Segmentation Segmentation Structure Structure New New Segment Segment Product Product Current New l “Ting” Kids Kids Kids Kids - Brand for 13~17age launched in Aug.’ Aug.’01 13 - Market Potential : 13 ~~ 17 17 age age Junior Junior “TTL” Low penetratio
Slide 4: Surging 2.5G subscribers under subsidy ban
Surging 2.5G subscribers under subsidy ban Monthly Monthly 2.5G Subscriber 2.5G Subscriber 2.5G Subscriber 2.5G Subscriber Comparison Comparison 1,000,000 As of July, 2001 (Subscribers) (Subscribers) 813,443 (Aug. 10th) SKT Market Share 88% Jan Feb Mar Apr May Jun Jul Aug 2001 (E) * Source : Compani
Slide 5: ARPU 2G vs. 2.5G (June, 2001)
ARPU 2G vs. 2.5G (June, 2001) ARPU ARPU Wireless Wireless Internet Internet ARPU ARPU (KRW) (KRW) * Excluding Interconnection & Sign-up fee l Wireless Internet Revenue = n.Top + Phone Mail l WI ARPU : Internet-able Handset base 4
Slide 6: Unparalleled Leader in Wireless Internet
Unparalleled Leader in Wireless Internet WI WI Revenue Revenue Comparison Comparison WI WI Monthly Monthly ARPU ARPU Comparison Comparison (KRW Bn Bn)) 1st Half, 2001 (KRW) 1st Half, 2001 * ARPU : Average WI Monthly Revenue / * Source : Companies Presentation, MIC Deployed Internet-able Handsets (Ju
Slide 7: From Entertainment To Information gathering
From Entertainment To Information gathering December, December, 2000 2000 June, June, 2001 2001 1) Character Download (23.6%) Content Hit * 1) Character Download (22.1%) 2) Chatting (10.4%) 2) Ringtone Download (8.6%) 3) Ringtone Download (5.7%) 3) Location Based Services (7.1%) 4) Games & Quiz (3.6
Slide 8: New Platforms for Wireless internet
New Platforms for Wireless internet PC PC n. TOP n. TOP VMT * PDA Handset Handset Wireless Wireless Internet Internet Services Services Any Any Time, Time, Any Any Place, Place, Any Any Device, Device, Full Full Customization Customization * Vehicle Mounted Terminal 7
Slide 9: New Platforms for Wireless Internet (Cont.)
New Platforms for Wireless Internet (Cont.) PDA PDA VMT VMT n.TOP Contents l l l l l l l Launching Date Target Market 8
Slide 10: Revenue Growth
Revenue Growth Revenue l Strong ARPU offset the subscriber Revenue reduction (KRW Billion) - Average Subs in 1H 2001 reduced by 2.4% QoQ - 0.5% +1.5% l Wireless Internet & VAS revenue continued to grow - WI & VAS revenue portion in 1H ‘01 increased to 5% from 2.3% of 1H ‘00 l Limited Tariff cut Impa
Slide 11: Upward ARPU Trend
Upward ARPU Trend Voice Voice ARPU ARPU Wireless Wireless Internet Internet ARPU ARPU (KRW) (KRW) (KRW) (KRW) Voice MOU rease 10 % Inc a se In cre 12 8% * ARPU : Excluding Interconnection & Sign-up fee * Gross base revenue divided by total subscribers 10
Slide 12: Focus on Profitability
Focus on Profitability EBITDA EBITDA Margin Margin l Moderate Competition - Handset subsidy ban continues - Down to 3 players from market consolidation l Strengthened Leadership - SK Shinsegi merger planned Jan. 2002 l Limited Regulation Impact Maintain current Profitability * EBITDA defined as Oper
Slide 13: Strong Cash Flow trend
Strong Cash Flow trend EBITDA EBITDA -- Capex Capex l SK Shinsegi Merger Synergy (KRW Bn) - 2 trillion won from 2001 to 2003 EBITDA Capex l Recoup 2.5G investment 626 - Flexible 3G deployment 944 - Successful migration from 2G to 2.5G 96 l Focus on wireless business Cash surplus * EBITDA defined as
Slide 14: Impact from possible tariff adjustment
Impact from possible tariff adjustment (a) Tariff Cut Demand Case Case Study Study :: ARPU ARPU Trend Trend (KRW) (KRW) l Public (NGO) Tariff cut (13%) (b) l MOFE Expected Results l Low tariff adjustment - due to weak competitors l Minimal impact on revenue - due to rising MOU (a) ARPU : Excluding I
Slide 15: Asymmetric regulations
Asymmetric regulations Current Current regulations regulations on on SKT SKT Further Further regulations regulations ?? l Competitive wireless industry l Tariff regulation by MIC - SKT : KTF : LGT = 50% : 34% : 16% l LM interconnection revenue - Fixed Local line (KT:HTI = 98% : 2%) - 63.6 won for SK
Slide 16: Summation : Shareholder Value Management
Summation : Shareholder Value Management Growth from Wireless Internet Sustainable high Profitability as well as Voice ² Less Competitive market ² Rising ARPU and Subscribers ² Flexible and smooth migration to 3G ² Successful take-off of 2.5G service ² Shinsegi Merger Synergies ² Shinsegi revenue wi
Slide 17: Thank you
Thank you www.sktelecom.com 16