Investor Presentation May 2013 0
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 statements about the Company s beliefs and expectations, are forward-looking statements. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results or performance of the Company to be materially different from any future results or performance expressed or implied by such forward-looking statements. The Company does not make any representation or warranty, expressed or implied, as to the accuracy or completeness of the information contained in this management presentation, and nothing contained herein is, or shall be relied upon as, a promise or representation, whether as to the past or the future. Such forward-looking statements were based on current plans, estimates and projections of the Company and the political and economic environment in which the Company will operate in the future, and therefore you should not place undue reliance on them. Forward-looking statements speak only as of the date they are made, and the Company undertakes no obligation to update publicly any of them in light of new information or future events. Additional information concerning these and other risk factors are contained in the Company s latest annual report on Form 20-F and in the Company s other filings with the U.S. Securities and Exchange Commission (SEC).
Contents 1. MNO Marketing strategy Tariff plans Subscribers ARPU Marketing expenses & CAPEX 2. Growth businesses (non-mno) B2B IPTV Platform 3. Financial results for 1Q13
1. MNO Marketing strategy SK Telecom management is focused on shifting the marketing paradigm to retention Retention programs Reduced marketing expenses New price plans Churn reduction plans T&T Sharing plan - Unlimited on-net voice calls All Sharing plan - Unlimited on&off-net voice calls Implemented early termination penalty program in Nov. 2012 - Over 90% of new subscribers Other retention focused initiatives launched/planned Increase service stickiness Reduce MNP and churn Reduce marketing expenses Enhanced upgrade plan Upgrade program that provides more benefits to long-term subscribers Subsidy regulation KCC closely monitoring market activities Legislation to regulate subsidy levels in preparation 1
1. MNO Tariff plans Introduced new price plans to accelerate move towards data and enhance retention - Launched T&T and All Sharing plans in March and April, respectively T&T and All sharing plans Price plan 35 On-net Voice Off-net (min.) Data Price (net of discount) 80 550M 27,800 45 130 1.1G 33,750 55 180 2G 40,750 65 Unlimited 280 5G 48,250 75 Unlimited mobile 8G 56,250 85 Unlimited 12G 65,000 mobile and 100 fixed 16G 76,000 Current status of new tariff plan Strong uptake - After 3 days: 0.2m subscribers 2 weeks: 0.6m end of April: 1.2m Attractive pricing - Non-aggressive, but competitive in terms of benefits and pricing Up-selling effect - LTE subscribers choosing to remain at existing or move up to a higher plan to maintain data allotment - 2G and 3G subscribers upgrading to higher LTE price plans Retention oriented programs - Have and will continue to introduce retention focused programs and encourage data usage Note: Additional KRW 3,000 for unlimited voice plan 2
1. MNO Subscribers LTE and smartphone subscribers continue to show steady growth Retention-centric paradigm shift to lead to decrease in churn rate Subscribers 1Q13 1Q12 YoY 1Q13 4Q12 QoQ Subscribers ('000) 27,030 26,556 473 27,030 26,961 68 Net adds 68 4 64 68 183 (115) Activations 2,013 1,983 31 2,013 2,138 (125) Deactivations 1,945 1,978 (34) 1,945 1,955 (10) Monthly churn rate (%) 2.4% 2.5% -0.1%p 2.4% 2.4% 0.0%p Average subscribers ('000) 26,974 26,558 416 26,974 26,856 117 Smartphone subscribers ('000) 16,647 12,574 4,072 16,647 15,979 668 LTE subscribers ('000) 9,334 1,766 7,568 9,334 7,530 1,804 Subscribers by network (m) 23.0 8.2 12.7 15.9 14.8 24.3 25.7 11.6 9.8 26.6 27.0 27.0 0.6 7.5 9.3 19.0 14.5 13.0 6.9 5.0 4.7 LTE WCDMA CDMA Total subscribers exceeded 27m as of 1Q13 Despite intense market competition in 1Q13, the churn rate decreased marginally YoY as focus turned to retention activities LTE subscribers reached 9.3m in 1Q13 and exceeded 10m recently. Over 35% of SKT s subscribers are on the LTE service The number of smartphone subscribers exceeded 16m, accounting for more than 60% of the subscriber-base 2008 2009 2010 2011 2012 1Q13 Smartphone subscribers (m) 18.0 15.0 12.0 9.0 6.0 3.0 0.0 16.0 16.6 200.0% 11.1 150.0% Smartphones 59.3% 61.6% 100.0% 0.5 3.9 41.7% 50.0% % of total 1.9% 15.2% subscribers 0.0% 2009 2010 2011 2012 1Q13 3
1. MNO ARPU ARPU continues to show solid growth boosted by the rise in LTE subscribers Expect billing ARPU to maintain positive momentum ARPU ARPU 1) (KRW) 1Q13 1Q12 YoY 1Q13 4Q12 QoQ Total ARPU 40,450 39,136 1,314 40,450 41,171 (721) Billing ARPU 2) 33,668 32,245 1,423 33,668 33,761 (93) Led by continued LTE subscribers growth, 1Q13 billing ARPU increased 4.4% YoY - LTE ARPU recorded KRW 48,400 in 1Q13, 44% higher than the billing ARPU 1) Includes SK Planet's earnings 2) The billing ARPU excludes sign-up fee from mobile service revenues 33.8 33.7 ARPU is expected to rise further as the higher ARPU LTE subscriber-base expands and data traffic increases Billing ARPU (KRW 000) 33.0 32.2 32.9 33.1 4.4% YoY 31.0 1Q12 2Q12 3Q12 4Q12 1Q13 1Q13 ARPU comparison (KRW 000) 50.0 30.0 48.4 41.2 17% 33.7 44% 10.0 LTE Smartphone Billing ARPU 4
1. MNO Marketing expenses & CAPEX Retention-based service paradigm shift to stabilize market CAPEX expected to decrease approximately 26% YoY in 2013 Marketing expenses & CAPEX (KRW bn) 1Q13 1Q12 YoY 1Q13 4Q12 QoQ Marketing expenses 1) 907 725 181 907 754 153 % of revenues 29.1% 24.1% 5.0%p 29.1% 23.9% 5.3%p Capital expenditures 351 482 (131) 351 972 (621) % of revenues 11.3% 16.0% -4.8%p 11.3% 30.8% -19.5%p 1) Marketing expenses = marketing related commissions + advertising expense 1,100 1,000 900 800 700 600 500 400 (KRW bn) 300 200 100 - Marketing expenses 725 24.1% 960 1,035 31.3% 33.4% 754 23.9% 907 29.1% 1Q12 2Q12 3Q12 4Q12 1Q13 200.0% 150.0% Marketing expenses 100.0% 50.0% % of revenues 0.0% Marketing expenses rose 25% YoY, and 20% QoQ due to the heated LTE market competition. As of mid-march, marketing intensity has cooled sharply CAPEX decreased sharply following the completion of the nationwide LTE network rollout in FY12 CAPEX (KRW bn) 482 58 424 616 61 555 788 80 708 972 105 867 351 29 322 Non-network Network 1Q12 2Q12 3Q12 4Q12 1Q13 5
2. Growth businesses Overview SK Telecom is at the forefront of new growth businesses Leveraging core competencies - wide market presence, large subscriber-base, expertise in network management Growth business domains & entities 100% App. Store M-commerce LBS B2B solution Healthcare 50.56% IPTV B2B solution - Actively pursuing opportunities in five major growing segments ranging from solutions for small retailers to energy management for commercial building, to smart cloud solutions Healthcare - Providing mobile solutions for individuals, patients, hospitals, as well as remote diagnostic solutions - Strong partnerships with Seoul National University Hospital, Seegen and NanoEnTek Platform - Core businesses (T store, 11 th Street and T map) recording continued strong growth - Merger with SK M&C expected to generate significant on/offline synergy IPTV - Growing fixed IPTV ( Btv ) to be complemented by rising mobile Btv subscribers 6
2. Growth businesses B2B solutions business Targeting B2B revenues of KRW 1.8 tn in 2013, up 26% YoY Solutions segment to drive growth of B2B business B2B solutions revenues (KRW bn) 150 1,600 Solution as % of B2B revenues 130 1,400 110 1,200 90 1,000 1,500 Five core solution businesses 100% 90% 80% 70% 60% Smart Store - Integrated sales, promotion, client management solutions and POS device for franchise shops and small enterprises Smart Work - Industry-specific customized solutions as well as installment of ICT infrastructure to enhance productivity, efficiency and security 70 50 30 10 48 73% 83 800 600 400 200 270 19% 528 29% 50% 50% 40% 30% 20% 10% Smart Cloud - Cloud solution based on mobile technology that offers the highest in security standards and big data-related services Green & Safety - Solutions to increase energy efficiency and safety of manufacturing facilities and commercial buildings 1Q12 1Q13-2012 2013 (E) 2015 (E) 0% M-Ad & Payment - Mobile advertising and payment solutions including coupons, settlements, authentication and other value-added services 7
2. Growth businesses IPTV business Targeting fixed/mobile IPTV subscribers of 7m by 2015 Mobile IPTV to show strong growth as demand for mobility and convenience increase IPTV subscribers & ARPU Solution services Expanding IPTV market share with bundled services - Bundled offering, a compelling reason for IPTV subscription to 92% of IPTV subscribers (Dec. 2012, KCC) 8.0 7.0 6.0 Subscribers (m) ARPU (KRW) 15,424 15,629 7.0 18,000 17,000 16,000 - Targeting 7m subscribers by 2015 Robust IPTV revenue growth to continue - Rising monthly fees and paid-content sales bolstered by 5.0 4.0 14,125 4.0 + α 15,000 14,000 growing home-shopping commissions and advertisements 3.0 2.0 1.0 0.9 1.7 2.1 13,000 12,000 11,000 Mobile IPTV - Paying subscribers now stand at 0.6m. Service launch in Oct. 2012 0.0 2011 2012 1Q13 2013 (E) 2015 (E) 10,000 - Expect to reach 2m subscribers by 2013 ARPU excludes mobile IPTV - Continuing to differentiate the service with exclusive mobile broadcast rights for Major League Baseball and 1-hour turnaround in screening of popular terrestrial-tv programs 8
2. Growth businesses Platform business Targeting annual revenues of KRW 1.5tn in 2013 SK planet s merger with SK M&C provides for an integrated on/offline marketing and big data opportunities, enhancing growth of commerce and content platforms SK planet revenues 11st transaction volume (KRW 0.7 tn) 0.6 0.5 0.4 1.8 1.6 1.4 1.2 1 1.03 50% 1.54 1.4 (KRW tn) 1.27 1.2 1.08 1.11 1.11 1.11 1 131 112 0.8 73 0.6 53 44 0.4 0.2 0 1Q12 2Q12 3Q12 4Q12 1Q13 200 180 160 140 120 100 80 60 40 20 0 Web + Mobile Mobile (KRW bn) 0.3 0.2 0.1 0.24 0.30 0.8 0.6 0.4 0.2 T store registered users 25 (m) 20 15.2 15 13.6 17.1 18.8 19.8 6E-16 1Q12 1Q13 0 2012 2013 (E) 10 5 Note: SK M&C merger reflected in 1Q13 and 2013(E) figures -0.1 0 1Q12 2Q12 3Q12 4Q12 1Q13 9
2. Growth businesses Data-centric era SKT is leading the industry towards an age of true mobile broadband data and is transforming its businesses to maximize the new opportunities Data-centric era creates new business opportunities SKT is leading the paradigm shift Rapid proliferation of LTE technology: fixed mobile, voice data, one device multi devices Data-centric era to spur growth of telco businesses and create new business opportunities LTE-A will broaden opportunities for new growth Competitive paradigm Retention focused management activities Adopting data-centric price plan Business model transformation At the forefront of new growth businesses, leveraging the large subscribers-base and network management expertise Combining ICT and connectivity with different industries to widen business scope 10
3. Financial results Consolidated Income Statement Operating revenues increased YoY due to increased sales from expanding LTE subscribers and new businesses Operating income decreased as a result of increased investments in FY12 and a rise in marketing expenses over the same period Summary of Income Statement (Consolidated) (KRW bn) 1Q13 1Q12 YoY 1Q13 4Q12 QoQ Operating revenues 4,113 3,970 143 4,113 4,197 (85) Operating expenses 3,702 3,470 232 3,702 3,653 49 Operating income 411 499 (89) 411 545 (134) Operating margin 10.0% 12.6% -2.6%p 10.0% 13.0% -3.0%p Net profit or loss from non-operating items 17 (104) Income from continuing operations before income tax 122 17 106 (88) 428 395 33 428 650 (222) Consolidated net income 346 300 46 346 519 (173) Net margin 8.4% 7.6% 0.8%p 8.4% 12.4% -4.0%p Majority interests Minority interests 354 306 (8) (6) 48 354 523 (169) (2) (8) (4) (4) Operating revenues: SK Telecom ( SKT or the Company ) recorded a 2% QoQ decrease due to the seasonal effect from decreased days. However, operating revenues grew 4% YoY, led by the growth of LTE subscribers, new businesses including B2B solutions, and the merger of SK M&C with SK Planet Operating income: Decreased 18% YoY due to the increase in depreciation costs stemming from SKT s network capital investment and a rise in marketing expenses. EBITDA slid 1% YoY Consolidated net income: Increased 15% YoY as positive earnings from SK Hynix contributed KRW 33 bn to pre-tax profits EBITDA 1) 1,093 1,108 (15) 1,093 1,248 (156) EBITDA margin 26.6% 27.9% -1.3%p 26.6% 29.7% -3.2%p 1) EBITDA = Operating income + Depreciation (including R&D-related depreciation) 11
3. Financial results Consolidated operating expenses Operating expenses increased due to labor cost, commissions paid, advertising, depreciation, and COGS Operating expenses (Consolidated) (KRW bn) 1Q13 1Q12 YoY 1Q13 4Q12 QoQ Labor 449 356 93 449 325 123 Commissions paid 1,451 1,415 36 1,451 1,470 (19) Advertising 65 70 (5) 65 138 (73) Depreciation 1) 682 608 74 682 704 (22) Network interconnection 253 296 (44) 253 201 51 Leased line 63 68 (4) 63 63 0 Frequency usage fees 50 51 (1) 50 52 (2) Cost of goods sold 321 271 49 321 308 13 Others 369 336 33 369 392 (23) Operating expenses 3,702 3,470 232 3,702 3,653 49 1) Includes R&D-related depreciation Labor costs: Increased YoY due to the increase in employees as a result of the SK M&C s merger with SK Planet. This, coupled with the seasonal New Year-bonuses contributed to the QoQ increase Commissions paid: Increased YoY mainly due to the rise in SKT s marketing expenses. The QoQ decrease resulted from reduction in commissions of subsidiaries Advertising: Decreased QoQ due to the base effect of increased year-end advertisement in 4Q12 Depreciation: Increased YoY due to SKT s increased network-related capital investment in FY12. While decrease in depreciable assets led to a QoQ decrease Cost of goods sold: Increased on YoY and QoQ basis due to the merger of SK M&C with SK Planet 12
3. Financial results Consolidated Balance Sheet Asset decreased due to debt repayment and a decrease in the number of consolidating subsidiary companies Balance Sheet (Consolidated) (KRW bn) 1Q13 1Q12 YoY 1Q13 4Q12 QoQ Total assets 25,409 26,547 (1,138) 25,409 25,596 (187) Current assets 5,082 5,556 (474) 5,082 5,294 (213) Cash & marketable securities 1,493 2,457 (964) 1,493 1,445 48 Non-current assets 20,327 20,991 (664) 20,327 20,301 26 Property & equipment 9,604 8,962 643 9,604 9,740 (136) Intangible assets 4,390 4,681 (291) 4,390 4,434 (44) Investment assets 5,809 6,160 (352) 5,809 5,586 222 Total liabilities 13,041 14,155 (1,114) 13,041 12,741 300 Current liabilities 6,287 6,583 (295) 6,287 6,175 112 Short-term borrowings 160 1,140 (980) 160 600 (440) Current portion of long-term debt 1) 910 607 303 910 893 17 Non-current liabilities 6,754 7,572 (818) 6,754 6,566 188 Bonds payable & long-term borrowings 5,750 6,315 (565) 5,750 5,348 402 Total shareholders' equity 12,368 12,392 (24) 12,368 12,855 (487) Interest-bearing debt 2) 6,670 7,917 (1,247) 6,670 6,684 (14) Debt/Equity ratio 3) 53.9% 63.9% -10.0%p 53.9% 52.0% 1.9%p 1) Includes current portion of long-term payables related to payment of frequency license fee 2) Interest-bearing debt = Short-term borrowings + Current portion of long-term debt + Bonds payable & long-term borrowings 3) Debt/Equity ratio = Interest-bearing debt / shareholders' equity Assets Current assets: Decreased 9% YoY as SKT s debt repayment reduced cash. Sale of Paxnet and SKY Property 1) reduced current assets by 4% QoQ Non-current assets: Decreased 3% YoY due to the decrease in the number of consolidating subsidiaries 1) 1) Number of consolidating subsidiaries decreased (32 29) as a result of the sale of Paxnet and SKY Property Liabilities Current liabilities: Decreased 4% YoY due to the SKT s debt payment. The 2% QoQ rise was due to the increase in dividends payable Non-current liabilities: Decreased 11% YoY due to the reduction in SKT s long-term debt. The 3% QoQ increase resulted from SKT s issuance of bonds Shareholders equity The 4% QoQ decrease resulted from SKT s dividends payable allocation in 1Q13 13
3. Financial results Non-consolidated operating revenues Operating revenues increased YoY due to increased LTE subscribers and sales from new businesses Operating revenue declined QoQ due to a decrease in number of working days Operating revenues (Non-consolidated) (KRW bn) 1Q13 1Q12 YoY 1Q13 4Q12 QoQ Mobile service 2,727 2,621 106 2,727 2,782 (55) Interconnection 210 254 (44) 210 166 44 New business & others 1) 175 132 43 175 211 (36) Total operating revenues 3,112 3,007 105 3,112 3,159 (47) 1) Includes sales from leased line, fixed-line resale, solution and other businesses 3,000 2,500 2,000 3,007 132 254 3,069 Operating Revenues (KRW bn) 3,097 138 157 264 252 2,621 2,666 2,689 3,159 166 3,112 211 175 210 2,782 2,727 1Q12 2Q12 3Q12 4Q12 1Q13 Mobile Service Revenue Interconnection New Business & Others 1Q13 total operating revenues increased 3.5% YoY, led by the growth of LTE subscribers and increased new business-related sales including B2B solutions. The 1.5% QoQ decrease was due to the seasonal effect arising from reduced days in February - Interconnection: Decreased YoY resulting from the adoption of lower interconnection rates and reduced call volume. The QoQ increase was due to the retroactive adjustment of the new interconnection rates in 4Q12 - New business & others: Increased YoY on strong sales of B2B businesses. While the QoQ decrease was due to the base effect of B2B-related year-end sales increase in 4Q12 14
Appendix Consolidated Income Statement (KRW bn) 1Q12 2Q12 3Q12 4Q12 1Q13 Operating revenues 3,969.7 4,007.9 4,125.5 4,197.4 4,112.6 Operating expenses 3,470.4 3,592.3 3,824.8 3,652.8 3,702.0 Labor cost 355.5 292.9 309.4 325.5 448.6 Commissions paid 1,414.5 1,548.2 1,592.9 1,469.5 1,450.8 Advertising 69.9 99.7 92.8 137.7 64.9 Depreciation 1) 608.3 607.5 659.1 703.7 681.9 Network interconnection 296.2 273.5 286.2 201.4 252.5 Leased line 67.5 65.4 68.5 63.2 63.4 Frequency usage fees 51.4 47.4 53.2 52.1 50.2 Cost of goods sold 271.4 299.3 418.5 307.9 320.7 Others 335.7 358.5 344.1 391.8 368.9 Operating income 499.3 415.6 300.7 544.6 410.6 EBITDA 1,107.6 1,023.1 959.8 1,248.3 1,092.6 EBITDA margin 27.9% 25.5% 23.3% 29.7% 26.6% Non-operating items (104.4) (105.1) (105.4) 105.6 17.3 Interest income 32.4 24.9 22.2 20.5 17.6 Interest expense 97.0 102.4 102.9 110.0 89.2 Others, net (39.8) (27.5) (24.7) 195.1 88.9 Income from continuing operations before tax 394.9 310.5 195.3 650.2 427.9 Income (loss) from discontinued operations 2) (9.9) (123.8) 0.1 (5.7) - Consolidated net income 300.4 120.6 175.6 519.1 345.9 Majority interests 306.4 143.4 178.9 523.0 354.2 Minority interests (6.0) (22.8) (3.2) (3.9) (8.2) 1) Includes R&D-related depreciation 2) Losses from discontinuation of satellite DMB business 15
Appendix SK Telecom Non-consolidated Income Statement (KRW bn) 1Q12 2Q12 3Q12 4Q12 1Q13 Operating revenues 3,007.4 3,068.6 3,097.5 3,159.2 3,112.1 Operating expenses 2,524.8 2,675.3 2,847.9 2,609.3 2,692.0 Labor 174.8 123.6 118.6 115.0 205.3 Commissions paid 1,266.3 1,444.7 1,559.2 1,282.8 1,364.1 Marketing commissions 689.0 898.7 986.5 690.3 871.8 Other commissions 577.3 546.0 572.7 592.5 492.3 Advertising 36.2 61.7 48.3 63.6 34.7 Depreciation 1) 427.1 427.4 467.4 513.2 503.6 Network interconnection 225.8 206.7 216.2 147.9 176.4 Leased line 56.5 55.5 57.2 58.2 53.8 Frequency usage fees 51.0 47.9 53.2 52.1 50.2 Others 287.2 307.8 327.8 376.6 303.9 Operating income 482.7 393.3 249.5 549.9 420.1 EBITDA 909.8 820.7 716.9 1,063.1 923.7 EBITDA margin 30.3% 26.7% 23.1% 33.7% 29.7% Non-operating items (48.8) (97.6) (87.6) 105.4 (39.9) Interest income 21.0 12.8 9.8 8.9 8.4 Interest expense 71.0 79.6 80.7 86.9 72.8 Others, net 1.2 (30.8) (16.7) 183.4 24.5 Income from continuing operations before tax 433.8 295.7 161.9 655.3 380.2 Net income 345.0 231.4 148.0 518.4 302.2 1) Includes R&D-related depreciation 16
Appendix Consolidated Balance Sheet (KRW bn) 1Q12 2Q12 3Q12 4Q12 1Q13 Total assets 26,546.9 25,773.4 26,057.9 25,595.6 25,408.8 Current assets 5,555.7 4,754.4 5,442.5 5,294.4 5,081.7 Cash and marketable securities 1) 2,456.9 1,698.6 1,687.6 1,444.5 1,493.0 Accounts receivable 2,485.8 2,455.7 2,494.4 2,537.0 2,920.7 Short-term loans 96.8 86.4 91.6 84.9 93.3 Inventories 184.1 226.4 238.6 242.1 205.1 Other current assets 332.2 287.3 930.4 985.8 369.6 Non-current assets 20,991.2 21,018.9 20,615.3 20,301.1 20,327.2 Property & equipment 8,961.5 9,035.8 9,295.3 9,740.2 9,604.1 Intangible assets 4,681.1 4,574.3 4,479.4 4,434.1 4,389.9 Investment assets 6,160.2 6,150.2 5,721.3 5,586.3 5,808.6 Other non-current assets 1,188.3 1,258.6 1,119.3 540.5 524.5 Total liabilities 14,154.9 13,272.7 13,498.9 12,740.8 13,041.1 Current liabilities 6,582.6 5,322.3 5,311.7 6,174.9 6,287.1 Short-term borrowings 1,139.6 784.5 552.8 600.2 160.0 Accounts payable 1,720.6 1,671.3 1,726.1 2,124.9 1,966.5 Current portion of long-term debt 606.9 366.8 366.9 892.9 910.3 Other current liabilities 3,115.5 2,499.7 2,665.9 2,556.9 3,250.4 Non-current liabilities 7,572.3 7,950.5 8,187.2 6,565.9 6,754.0 Bonds payable & long-term borrowings 6,315.4 6,682.5 6,856.8 5,348.5 5,750.3 Long-term payables - other 710.3 710.7 713.6 715.5 565.6 Post-employment benefit obligation 93.1 102.3 117.2 86.5 102.3 Other non-current liabilities 453.4 454.9 499.6 415.4 335.8 Total shareholders' equity 12,392.0 12,500.6 12,558.9 12,854.8 12,367.7 Capital stock 44.6 44.6 44.6 44.6 44.6 Capital surplus 2,924.7 2,924.7 2,924.7 2,924.7 2,924.8 Retained earnings 11,359.3 11,501.0 11,610.8 12,124.7 11,890.3 Capital adjustments (3,215.4) (3,215.4) (3,215.4) (3,213.6) (3,276.8) Other comprehensive income/loss 2) 229.4 216.9 175.8 (25.6) 2.2 Minority interests 1,049.3 1,028.8 1,018.4 1,000.0 782.6 1) Cash & marketable securities includes cash & cash equivalent, marketable securities & short-term financial instruments 2) Other comprehensive income/loss include gains or losses on valuation of investment securities and derivatives 17
Appendix SK Telecom Non-consolidated Balance Sheet (KRW bn) 1Q12 2Q12 3Q12 4Q12 1Q13 Total assets 23,106.7 22,271.9 22,526.5 22,249.5 22,391.5 Current assets 3,615.3 2,590.2 3,187.6 2,589.7 2,765.8 Cash and marketable securities 1) 1,488.7 546.4 544.0 445.9 631.3 Accounts receivable 1,814.8 1,755.8 1,769.9 1,790.3 1,871.3 Short-term loans 85.8 75.4 81.5 75.4 84.7 Inventories 3.2 14.4 13.8 16.0 10.5 Other current assets 222.8 198.2 778.5 262.1 168.0 Non-current assets 19,491.4 19,681.7 19,338.9 19,659.8 19,625.7 Property & equipment 6,057.2 6,280.6 6,550.3 7,119.1 7,043.8 Intangible assets 3,641.2 3,591.3 3,532.1 3,494.1 3,419.4 Investment assets 9,230.4 9,200.1 8,781.0 8,649.5 8,810.6 Other non-current assets 562.5 609.6 475.5 397.1 351.9 Total liabilities 11,411.6 10,366.2 10,542.4 9,872.5 10,326.9 Current liabilities 5,087.3 3,667.2 3,600.9 4,343.1 4,591.6 Short-term borrowings 500.0 200.0-330.0 40.0 Accounts payable 1,455.9 1,230.4 1,169.8 1,557.3 1,430.3 Current portion of long-term debt 568.1 331.2 333.9 713.1 710.4 Other current liabilities 2,563.3 1,905.6 2,097.2 1,742.7 2,410.9 Non-current liabilities 6,324.3 6,699.0 6,941.5 5,529.4 5,735.3 Bonds payable & long-term borrowings 5,086.7 5,447.8 5,632.2 4,340.4 4,764.4 Long-term payables 705.5 702.8 705.6 705.6 555.4 Post-employment benefit obligation 32.7 40.2 46.9 35.0 42.0 Other non-current liabilities 499.5 508.2 556.8 448.4 373.5 Total shareholders' equity 11,695.1 11,905.7 11,984.1 12,377.0 12,064.7 Capital stock 44.6 44.6 44.6 44.6 44.6 Capital surplus 2,920.9 2,920.9 2,920.9 2,920.9 2,920.9 Retained earnings 11,592.0 11,822.2 11,901.5 12,414.0 12,128.4 Capital adjustments (3,156.9) (3,157.1) (3,157.1) (3,157.1) (3,157.1) Other comprehensive income/loss 2) 294.5 275.0 274.1 154.6 127.8 1) Cash & marketable securities includes cash & cash equivalent, marketable securities and short-term financial instruments 2) Other comprehensive income/loss includes gains or losses on valuation of investment securities and derivatives 18