Sk Telecom Co., Ltd. · KRX:017670
Sk Telecom — CSFB Asian Investment Conference 2002
29 slides from Sk Telecom's conference presentation, March 2002
Slide 1: Moving Towards Next Generation Wireless Internet Services
Moving Towards Next Generation Wireless Internet Services CSFB Asian Investment Conference Hong Kong, March 2002 [email protected]
Slide 2: Contents
Contents Q Dominant Market Position Q ARPU Growth Strategies Q Wireless Internet Strategies ³ Multi-Platform Model ³ Financial Enabler Model 2
Slide 3: Dominant Market Position
Q Dominant Market Position Q ARPU Growth Strategies Q Wireless Internet Strategies ³ Multi-Platform Model ³ Financial Enabler Model 3
Slide 4: Robust Financial Performance
Robust Financial Performance 2000 2001 Difference Revenue KRW 5.8 tril KRW 6.2 tril +9% EBITDA KRW 2.5 tril KRW 3.1 tril +25% EBITDA Margin 44% 53% +9 ppts Return on Equity 16% 20% +4 ppts Capex/ Revenue 32% 18% -14 ppts Net Debt/EBITDA 0.2x 0.7x -- Year-End ARPU KRW 42,184 KRW 48,467 +14% Note: Fig
Slide 5: Subscriber Growth Continuing
Subscriber Growth Continuing Market Penetration Market Share SKT’s Market Share Restriction April Aug July Dec 2003(E) Top Asian 2000 2000 2001 2001 countries (current)* * Average of HK, Singapore and Taiwan 5
Slide 6: Outstanding Subscriber Quality
Outstanding Subscriber Quality Widening premium of ARPU & MOU relative to KTF and LGT MOU(minute) ARPU(W) SKT KTF LGT SKT KTF LGT Note: Outgoing MOU only Note: Excluding Sign-up & Interconnection fee 6
Slide 7: Value Enhancement from the Merger
Value Enhancement from the Merger SKT merged with Shinsegi back in January, 2002 SKT owned Shinsegi Share 70% ¶ All Canceled Minority Shareholders’ 30% ¶ Distribute 3% of SKT Treasury Stock Before Merger After Merger Change Number of Shares 89,152,670 89,152,670 No Change EBITDA 3.1tril.(W) 3.9t
Slide 8: ARPU Growth Strategies
Q Dominant Market Position Q ARPU Growth Strategies Q Wireless Internet Strategies ³ Multi-Platform Model ³ Financial Enabler Model 8
Slide 9: No Voice Cannibalization
No Voice Cannibalization (KRW) Data ARPU Voice ARPU ARPU : 9
Slide 10: ARPU by Handset Type
ARPU by Handset Type Voice ARPU Wireless Internet ARPU (KRW, As of Dec, 2001) (KRW, As of Dec, 2001) Color Phone Color Phone 10
Slide 11: Trend of 2.5G & Color Handsets
Trend of 2.5G & Color Handsets 57.8 30.0 23.0 3.5 4.3 0.4 0.1 2000.12 2001. 6 2001.12 2002(E) 2.5G Color 11
Slide 12: ARPU Enhancement through Segmentation & Bundling
ARPU Enhancement through Segmentation & Bundling Reach High ARPU through NATE, CNIP, CRBT bundling ARPU : 12
Slide 13: Wireless Internet Strategies
Q Dominant Market Position Q ARPU Growth Strategies Q Wireless Internet Strategies ³ Multi-Platform Model ³ Financial Enabler Model 13
Slide 14: Technology Savvy Korean
Technology Savvy Korean Fixed Broadband Penetration(1) SKT’s 2.5G Penetration(2) 60% 55% 25% 49% Color handset 21% 50% 44% 19% 20% Non-Color 4% 40% 36% 15% 3% 15% 2% 27% 11% 30% 10% 1% 19% 7% 20% 5% 11% 5% 10% 5% 0% 0% 1Q 2Q 3Q 4Q 1Q 2Q 3Q 4Q Jul Aug Sep Oct Nov Dec 2000 2000 2000 2000 2001 2001 200
Slide 15: Leader in 2.5G Market
Leader in 2.5G Market 2.5G Subs (000’s) 2.5G Subs / Total Subs 28% 6,074 2.5G M/S 73% 5,108 as of Feb 4,181 3,487 2,692 1,903 1,287 775 418 SKT KTF LGT Note: As of Feb. 2002 15
Slide 16: Growth Potential of Wireless Internet
Growth Potential of Wireless Internet Wireless Internet User Breakdown(1) Content Usage Pattern Others 1.8% 100% E-lottery/ 0.2% Shopping 80% News/Sports 2.0% 60% E-mail/Chatting 4.7% Stocks/Banking 5.0% 40% Location/Travel/ 6.4% Traffic 20% Adult 9.5% Games/ 30.3% 0% Entertainment User Mix Revenue
Slide 17: EV-DO Network & Handset Roll-out Plan
EV-DO Network & Handset Roll-out Plan Q Data Speed up to 2.4 Mbps / Providing Multimedia Focused Contents Q Enlarge through 27 major city until May 2002 ( CapEx : 200 bil won). Q EV-DO phones are color, have 40 polyphonic tones and video enabled Feb 2002 May 2002 Jun 2002 Aug 2002 Non-VOD Non-VODHan
Slide 18: Axes of Wireless Internet Revenue
Axes of Wireless Internet Revenue Multi-Platform Wireless Fixed Line Build Personal Platform Broadcasting business Value Creation through Wireless Internet Financial Enabler Develop Financial Enabler business M-Finance M-Commerce Payment Infrastructure 18
Slide 19: Multi-Platform Model
Q Dominant Market Position Q ARPU Growth Strategies Q Wireless Internet Strategies ³ Multi-Platform Model ³ Financial Enabler Model 19
Slide 20: The Multi-Platform Model
The Multi-Platform Model Q Provide customers with seamless and personalized Internet services Mobile Platform Single point of entry Handset to the Internet Handset PDA VMT(1) PDA VMT(1) Fixed Platform Multi-Device Integration PC Home TV Appliance Home PC TV Appliance Note : NATE is the brand name fo
Slide 21: Evolution of Multi-Platform Services
Evolution of Multi-Platform Services Q Service evolution and our focus areas for 2002 2,000 1G 2G 3G 384 Still Imaging Video Streaming Remote Medical Service Data Transmission Speed - k bps Video Conference 144 Audio Streaming VOD 128 Text Messaging Mobile TV Location- Mobile Advertising Voice Based
Slide 22: on Handset
on Handset Q From basic applications to high-powered multimedia services Mobile Location Based Mobile NATE Wizard Mobile Coupon Broadcasting Service Advertising NATE Wizard NATE Air Coupack NATE Drive Mobile AD Support GVM/JAVA News / Movie / Adult Discount Coupons: Map Localized Ads Application Fas
Slide 23: on PC
on PC Q Closely linked to the wireless Internet • Mail • Photo Mail • My NATE • Photo Printing • Photo Album • Community • Messaging • PC-Phone Sync Service • Life • PIMS (Personal Information Management Service) • e-mail Management • Entertainment • Money Content Mall • Ring Tone & Picture • Shoppi
Slide 24: on PDA
on PDA Launched in November 2001 Q Recreates PC based Internet environment anytime, anywhere Wireless Service Full Functionality Transforms the standalone PDA into a Improved user interface for heavy full-featured communications device users 24
Slide 25: on VMT
on VMT Launched in February 2001 Q Total transportation and related information for life on the go Navigation Search Real Time Traffic Convenience Information Information Emergency Favorites Services 25
Slide 26: Financial Enabler Model
Q Dominant Market Position Q ARPU Growth Strategies Q Wireless Internet Strategies ³ Multi-Platform Model ³ Financial Enabler Model 26
Slide 27: The Financial Enabler Model
The Financial Enabler Model SKT’s Financial Enabler Business Benefits to SKT Resources Payment Services Financial Portal Customer Base (16 mm Q Petty Cash Q Billing and Payment Q Transaction Subscribers) Settlement Fee Q Bank Account Q Person to Person Management Q Payment Fee Brand Q MONETA Card Q
Slide 28: Financial Enabler Services: An Example
Financial Enabler Services: An Example Q Lock in customers and leverage our subscriber base for M-commerce Q Low risk strategic alliances involving no equity investment MONETA Card Q Currently, an IC chip installed multi-function credit card ³ Credit Card ³ Transportation ³ e-Money ³ Membership Q Wi
Slide 29: Thank You !
Thank You ! [email protected] 29