Investor Presentation. May 2007

Transcription

1 Investor Presentation May 2007

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. 1

3 11:30 AM 05/07 Table of Contents 1. Industry Overview Q Operating Results 3. Growth Strategy 4. Commitment to Shareholders 2

4 11:30 AM 05/07 1. Industry Overview Q Operating Results 3. Growth Strategy 4. Commitment to Shareholders 3

5 Overview of Korean Wireless Market Wireless data market keeps growing despite the maturing market Mobile Telecommunications Market Penetration Wireless Data Market Growth (000s, %) 67.9% 32, % 33, % 36, % 38, % 40,197 (KRW Bn) 5-yr CAGR : 35.7% 3,284 3,685 2,424 1,736 1, Subscribers Penetration Source: MIC, NSO Source: Earnings release 4

6 2007 1Q 1 Competitive Landscape SK Telecom continues to demonstrate undisputed market leadership Market Share by Subscribers Revenue (000s, %) LGT 17.6% 7,212 (KRW Bn) 2,712 13,156 20,733 SKT 50.4% 1, KTF 32.0% SKT KTF LGT Marketing Expense to Sales EBITDA (%) 21.6% 27.7% 30.0% (KRW Bn) 1, SKT KTF LGT SKT KTF LGT 5

7 11:30 AM 05/07 1. Industry Overview Q Operating Results 3. Growth Strategy 4. Commitment to Shareholders 6

8 2007 1Q Results Solid performance in 1Q 2007 (KRW Bn) 1Q Q 2006 YoY 4Q Q 2006 QoQ Revenue 2,712 2, % 2, % Marketing Expense to Revenue 21.6% 17.3% 4.3%p 23.0% -1.4%p EBITDA (EBITDA Margin) 1,054 (38.9%) 1,029 (40.5%) 2.5% 1,030 (37.3%) 2.3% Net Income % % Capital Expenditure % % 7

9 11:30 AM 05/07 1. Industry Overview Q Operating Results 3. Growth Strategy 4. Commitment to Shareholders 8

10 Domestic Business Provide the best quality of services to all customer base in SKT through dual network for better choices and service satisfaction - Fully leverage the existing CDMA network proven for excellence and cost efficiency - Bring out new services supported by HSDPA network HSDPA Completed the nationwide coverage in 1Q 2007 Introduced SBSM Handsets in Aril 2007 Enhance ARPU through quality services Video Telephony & Related Value-Added Services - Phone-to-phone, web-to-phone & fixed-to-phone - Image coloring / lettering, image message call Roaming services High Speed Data Services - UCC : User created contents - T-Login : Hi-speed internet access - Full browsing : Mobile web browsing Convenience services utilizing USIM - GSM or WCDMA covers 80% of the world - Wireless financial services [ Credit card transaction, mobile banking and payment services, electronic certificates, membership cards, mobile gift cards, etc.] 9

11 Global Business Focus on gaining competitiveness in invested markets Vietnam Notable results thanks to the expanded network and differentiated tariff plans - Subscriber numbers : 1.83mn(end of Mar. 07) 0.37mn(end of Dec. 05) Significant growth potential in terms of penetration - expect to reach 57.3%* by 2010 from 23.9% as of 2006 U.S. Launched MVNO service in May 2006 to target tech savvy Americans & Korean expatriates Expand subscriber base through handset line-up and expansion of distribution channel * Source: Vietnam Government China June 2006: invested US$ 1 bn in China Unicom s CB Strategic alliance in 6 areas (Handset sourcing, platform, network etc.) 10

12 11:30 AM 05/07 1. Industry Overview Q Operating Results 3. Growth Strategy 4. Commitment to Shareholders 11

13 Improving Shareholder Value SK Telecom is committed to enhancing shareholder value Special Dividends : Approx. KRW 300 Bn for 2004 Stock Buyback : KRW 200 Bn for 2006 Stock Buyback : KRW 200 Bn for % 21% 25% 35% 40% KRW 408,000 % E Payout ratio DPS 12

14 THANK YOU KR000KXG 13