SK Group Overview€¦ · Total Sales (Unit: U$ Billion) EBIT (Unit: U$ Billion) 2013 2014 2015 2016 2017 2013 2014 2015 2016 139.9 INFORMATION, 145.7 4 102.5 6 5 6 5 05 FY2017 Revenue

SK GROUP

OVERVIEW

2018

THE BEGINNING From Textiles

TEXTILES TO

PETROLEUM Vertical Integration

TELECOMMUNI-

CATIONS Expansion to ICT

SEMICONDUCTOR New Growth

SUSTAINABLE

INNOVATION Challenge and

Innovation

1953 Founded as Sunkyoung

Textiles

1969 Began polyester fabrication

1978 First Korean company to

Develop polyester films

1980 Privatization of Korean Oil

Corp-Yukong (now SK Energy)

1988 Began production from

Overseas oil fields (Yemen)

1991 Completed vertical integration

in energy business

1994 Acquisition of Korea Mobile

(now SK Telecom)

1996 World‟s first CDMA

2004 World‟s first satellite DMB

2007 Reorganized into a holding

Company

2012 Acquisition of Hynix

(now SK Hynix)

2013 Exports reached U$ 60

Billion (over 10% of Total

Korean exports)

2015 Launched integrated

holding company

by merging with the

SK C&C

2016 Expansion into

semiconductor materials

business

2017 Global expansion of

pharmaceutical facilities

04

Total Sales (Unit: U$ Billion)

EBIT (Unit: U$ Billion)

2013 2014 2015 2016

2013 2014 2015 2016

13

9.9

14

5.7

11

6.4

10

2.5

4.6

6.5

8.6

6.5

05

FY2017 Revenue

U$ 121.6 Billion

45%

37%

17%

ENERGY &

CHEMICALS

INFORMATION,

TELECOMMUNICATION

& SEMICONDUCTOR

LOGISTICS &

SERVICE

2017

2017

121.6

17.2

Energy &

Chemicals

Information,

Telecommunication &

Semiconductor

Logistics &

Service

55.8 Billion

U$

44.6 Billion

U$

21.3 Billion

U$

E&P, Future Energy, R&D

Oil Refining & Marketing

Petrochemicals

Lubricant

Petroleum, Petrochemical Products

Trading of Crude Oil

Fine Chemicals, Life Science

Chemical & Electronic Materials

Holding co. of LNG Distributors, Power Generation

LPG Marketing & Trading

New Medicine Development

CMO, APT, AI

Special Gas for Semiconductors

IT Solutions & Consulting

Mobile Service Provider

Semiconductor Memories

Platform Service

Wired/Wireless Telecom, Broadcasting Service

Mobile Platform

Repeater, Transmission, LTE

International Call & VoIP Service

Internet Portal, SNS/Messaging

Rental Service

06

Engineering, Plant Construction

Energy Distribution, Trade, Consumer Goods Business

Marine Transportation

Ranked Ist in Oil & Gas Sector and Telecommunication Sector

Telecommunication Sector

Oil & Gas Sector

07

2rd Largest in Market Capitalization (U$ 118.5 Bn)*

(Market Capitalization as of the end of 2017, U$ Billion)

48

0.0

11

8.5

10

8.6

95

.4

27

.6

99

.8

Global Fortune 500 | As of 2017 Global Revenue | As of 2017

Global Networks | As of 2017

Global Assets | As of 2017

U$ 63.8 Billion

U$ 27.6 Billion

95th

1st 2nd 3rd 9th 81st 95th 144th

270 Affiliates/Branches

08

09

* 16 subsidiaries as the members of SK SUPEX Council

SUPEX Council leads the

“Independent yet United”

Management System

*SUPEX is and abbreviation for SUPer-EXcellent level

SUPEX

Council*

Strategy

Committee

Communi-

cation

Committee

Energy ∙

Chemical

Committee

Corporate

Contribution

Committee

Global

Growth

Committee

Talent

Development

Committee

ICT

Committee

Making sure each

BOD is transparent,

also is focused on

shareholder value

Independent

Promoting group-wide

synergy through

SK SUPEX Council

United

10

Social Enterprise

Social Contributions

Corporate Partnership

Establishing and operating various social enterprises

- Happy School, Happy Lunchbox, Happy Green Recycling, etc.

Activating social enterprise ecosystem

Education, Scholarships

- Korea Foundation for Advanced Studies

Volunteer Work

- SK Pro Bono Volunteer Club, SK SUNNY

Supporting business partners on training, capital, tech.,

Overseas expansion, etc.

- Announced “Happy Partner Management” in 2005

- SK Corporate Partnership Academy

- SK Job Fair with Partner Companies

| China

SK SUNNY China, Forest development project,

Medical / Emergency Assistance, etc.

| Vietnam

Free surgery for children suffering from face deformities

| Kuwait

Supporting the Thukhur leaders for Kuwait

development initiative

| Columbia/Peru/Brazil Helping to repair natural disaster

(flood, earthquake, etc.)

11

Bio / Pharmaceuticals SK Holdings has subsidiaries with strong

competiveness in diverse business areas including

energy, chemicals, information and communications,

semiconductors, marketing and services. In 2015,

under the management policy of “reinforcing the

execution power to achieve excellent results,”

strategic investments were made from a long-term

perspective as part of the efforts to boost the value

of the current portfolio.

Also, SK Holdings will pave the foundation for

strong growth by conducting internally stable

management activities based on financial stability,

together with the efforts to strengthen our

governance structure. Moreover, we‟ll concentrate

our capabilities on enhancing our corporate value

by investing into the new growth engine businesses

that are expected to have high value in the future.

Semiconductor Materials

and Modules

Liquefied Natural Gas (LNG)

ICT Convergence

13

Information Technology (IT)

Service

Sales U$ 82.5 billion

Refinery

(Petroleum, Gas, and

Special Products) &

Marketing

Production of

Petroleum &

Petrochemical

Products

Lubricants

Base Oil

Production of

Petroleum &

Petrochemical

Products

Trading of Crude Oil &

Petroleum Products

Specialty Gas used in

Semiconductors and

Displays Manufacturing

Process

Global Contract

Development and

Manufacturing

organization

Global New Drug

Development

LPG Marketing

Global LPG Trading

LPG Import Base

Operation

Tank Terminal

PDH (Propane

De-Hydrogenation)

14

Exploration and Production

Batteries

Information & Electronics

Materials Future Energy

Green Chemicals

(Chemicals and Energy)

Life Science (Pharmaceuticals

and Biopharmaceuticals)

Chemicals Films

Photovoltaics

New Materials

Future Materials

LNG (Shale Gas)

Power Generation

Domestic and

Overseas City Gas

New and

Renewable Energy

Exploration &

Production


No.1 Energy Provider

in Korea

- The 2nd largest single-site

refinery (Ulsan Complex) in

the world (840,000 b/d CDU)

- Asphalt M/S No.1 in Korea

Global Top-tier

Chemical Company

- Market expansion

collaborating with global

Major companies

(Sinopec, SABIC, JX, etc.)

- Tech. innovation related to

eco-friendly products

(NexleneTM)

- Global major player

in Paraxylene sector

World’s No.1 Group III

Base Oil Producer

- Accounts more than 50%

Of III Group market

- Korea brand power No.1

in engine oil sector

for 14 consecutive years

- Operating JV LBO plants

with global partners

(Pertamina, JX, Repsol, etc.)

Sales U$ 25.5 billion Sales U$ 9.1 billion Sales U$ 2.6 billion

15

- 29 projects in 16 countries

with 623 million oil & gas

reserves and 73,000 boed

production


Eco-friendly Materials

- World‟s 1st successful

commercialization of

eco-friendly/bio functional

resin (‟09, ECOZENTM)

Life Science

- Total healthcare solution

provider-vaccine (domestic

M/S No.1), medicine, etc.


Production of Petroleum

and Petrochemical

Products

- Established as the nation‟s

third refinery in 1969

- An important role in the

supply of fuel oil to Gimpo

and Incheon International

Airports and energy to the

Seoul Metropolitan area

Global Trading Company

in the Energy Industry


16

- Professional traders with

global competitiveness

based on its sophisticated

risk management system

No.1 City Gas Distributor

in Korea


Global LNG Value Chain

Integration

- Shale gas E&P,

LNG direct Import,

LNG Trading,

LNG Terminal and

Power Plants Operation

- Accounts 22.5% of

Domestic Market

Global Specialty

Material Company -

A leader in Chemical

& Film Industry

- Global M/S No.1 in

Optical Film business for

LCD and No.4 producer

in Polyester film maker

- A leading company in

Polyurethane sector and

the first in the world to

commercialize „HPPO‟

plant


17

Sales N/A

Global New Drug

Development

- Become a Global Top Tier

Specialty Pharmaceutical

company that leads the

global market with the

development of

innovative next-generation

drugs


Global CDMO

- Contract development

and manufacturing

organization (CDMO)

in the global

pharmaceutical industry

- World leader in

continuous flow process

technology

- Exports over 85% of

total revenue based on

global customer base


Korea No. 1

LPG Player

- Accounts over 50% of

imported LPG distribution

- Top LPG trading co.

in Korea for over

20 years and big-scale

LPG terminal

(470,000 tons capacity)

- Business expansion

to PDH and coal power

plants


Leading Manufacturer

of Special Gas

- World‟s biggest supplier

of a specialty gas NF3,

WF6

- World‟s second biggest

of SiH4

Consulting

System Integration

IT Out Sourcing

Security Service

Mobile Communications (MNO)

IoT

Media/Home

Platform

DRAM

NAND Flash

CIS

Integrated and Personalized

Commerce

18

Mobile Platform

ICT Development

and Operation

High-Speed Internet

Telephone

IPTV

T Commerce

Corporate ICT Service

Repeaters

CPE(Giga-Wifi, Ap)

Smartphone R&D

FEMS

High-Efficiency Machinery

Transmission Equipment

LTE Equipment

The Nation‟s Best

International Call

Service Provider

Integrated Portal

Integrated Communication Messenger

Mobile Service


- Over 25 million mobile

subscriber (M/S 51%)

- Top ranking in the Korean

Customer satisfaction Index

for 16 consecutive years

- Global tech. leadership –

Winning „Prestigious LTE

Award at LTE World

Summit 2013

World No.2 Player

in DRAM Market

- No.4 in overall

semiconductor market

- Exports over 90% of total

revenue based on global

network (16 countries)

- World leading R&D

competitiveness

Offering Integrated &

Personalized Commerce

- SK Planet is committed to

operating Commerce Biz.

Platform and Commerce

Enabling Platform businesses

while focusing on the

Integrated & Personalized

Commerce.

- SK Planet has evolved into a

global service provider that

has already advanced into

some key overseas markets.

Sales U$ 26.3 billion Sales U$ 0.9 billion

19

Global ICT Service Leader

- Providing premium IT Services

in system integration,

outsourcing, info. Security, etc.

- The 1st Korean IT co. listed

in the Dow Jones

Sustainability Index World

for 3 consecutive years („12~)

- Expansion to new business

area with IT synergy :

Used car sales (No.1 in Korea),

Semiconductor module

distribution, etc.

The 1st Telecommunication

Company in Korea

Sales 2.5 billion


Korea’s Representing

Internet Company

- Operating a wide rage of

Internet services:

“Nate.com” web portal

which delivers content and

bulletin board services

from both online and

mobile platforms;

“NateOn”, a quick and

convenient integrated

communication messenger;

and “Cymera”, a self-portrait

photo app

The Nation’s Best Int’l

Call Service Provider


- Providing international call

service brand “00700”

- Offering a wide range of

wire-wireless communication

services including MVNO

service brand “SK 7mobile”,

satellite communication

service “SK Smart Sat”,

universal area code service,

and Internet calls

- Creating synergy effects

among the businesses of

security and B2B and B2C

communications by acquiring

NSOK, a security and guard

company

Evolving into a Platform

Company, Providing

New Customer value

- Over 25 million mobile

subscriber (M/S 51%)

- Top ranking in the

Korean Customer

satisfaction Index for

16 consecutive years

- Global tech. leadership –

Winning „Prestigious LTE

Award at LTE World

Summit 2013


Leading Technology

based Business Solution

- No.4 in overall

semiconductor market

- Exports over 90% of total

revenue based on global

network (16 countries)

- World leading R&D

competitiveness

Sales U$ 0.5 billion Sales U$ 0.2 billion

To Become the No.1

Partner in the Platform

Business

- Launched in March 2016

- Specializes in ICT

platforms based on the

expertise – obtained as a

former section of

SK Telecom and

SK Planet –

in the development and

operation of various

mobile platforms

20

Trading ICT Marketing Car-Life Energy Distribution Hotel Services

Manufacture of Kitchen and Home Appliances Rental Service of Home Appliances

Infrastructures Housing and Architecture Plants (Chemical, Power, Industrial)

Tanker Gas Carrier Bulk Carrier Bunkering Ship Management

21

Premium Kitchen

Appliances Company

- Incorporation into the SK family

in 2016

- Home appliance business has

solid brand power,

ranking first in the Korea

- Offering popular products in

more than 20 countries,

centering around the Middle East


Global Top Shipping Co.

in Resources Transport

- Largest domestic LNG

transportation operator

- Responsible for more than

1/3 of imported crude oil

in Korea

- Ranked 1st in M/S among

global bunkering operators


Build the Great – Global

Total Solution Provider

- Top-notch technical

expertise and outstanding

management capabilities in

infrastructure, housing,

plants, etc.

- 57 global projects in 22

countries with 33 overseas

affiliates/branches

- Received the highest score

on LEED Platinum grade

in Korea


22


World-class Trading &

Marketing Company

- 52 worksites in 15 countries,

industrial commodity trader

(coal, chemical and steel

products)

- Korea No. 1 mobile device

& petroleum product

distributor

- Korea Brand Power No. 1

in automobile maintenance

service sector for

12 consecutive years

EUROPE

U$ 2.1 Bn Assets


832 Talents

Assets size

U$ 27.6 Bn Assets


15,000 Talents

MENAT

U$ 0.4 Bn Assets


794 Talents

CHINA

U$ 11.6 Bn Assets


10,212 Talents

NORTH AMERICA

SOUTHEAST ASIA

U$ 5.3 Bn Assets


1,022 Talents

OCEANIA / REST OF ASIA

U$ 2.3 Bn Assets


507 Talents

LATIN AMERICA

U$ 0.9 Bn Assets


65 Talents

11.6 U$

Bn

5.3 U$

Bn

5.0 U$

Bn

2.1 U$

Bn

Bn 2.3

U$

U$

0.9 Bn

0.4 Bn

U$

24

U$ 5.0 Bn Assets


1,404 Talents

Assets: As of FY2017

Affiliates and Talents: As of April 2018

LPG business CHINA

BEIJING

TIANJIN

QINGDAO

JIANGSU

WUXI WUHAN

SHANGHAI

GUANGZHOU

SHENZHEN

SOUTH

CHINA SEA

NINGBO

XIAN

25

SUZHOU

CHONGQING

EV battery business

Lubricants business

Sales of TRAST patch, albumin, and other products

Polyurethane factory (system house)

Signed MOU with CSCEC

Asphalt research and marketing

Sales of copolyester, eco-friendly plastic

Sales subsidiary

Molecular diagnosis business

Polyester resin factory for adhesives

Memory semiconductor backend process

factory

Sales of copolyester,

eco-friendly plastic

Exploration and production (E&P)

NF3 production subsidiary

Blending plant

ICT convergence healthcare business

Semiconductor manufacturing

EPDM factory

LNG trading business in China

ICT convergence healthcare business

Prepreg factory

PET film factory

Sinopec-SK (Wuhan) Petrochemical Co, Ltd.

26

VIETNAM

THAILAND

INDIA

MALAYSIA

SINGAPORE

INDONESIA

LNG trading


Lubricants business

Steel trading business

Home appliances business

Base oil plant

City gas and power generation business


Online open market (11street)

Asphalt products trading business

and securing fixed market

Crude oil and petroleum products trading

LPG trading & LPG import terminal business

Petrochemical plant construction

27

KUWAIT IRAN

SAUDI ARABIA QATAR

OMAN

TURKEY

LIBIYA

YEMEN


Hospital information system project

Wasit Gas Plant construction project

Online open market (n11.com)

Turkey Eurasia tunnel

LNG project

LNG project

LNG project

Kitchen appliances business

Kuwait Elevated Substation project

28

RUSSIA

SPAIN

POLAND NETHERLANDS

GERMANY

FRANCE

UNITED KINGDOM


Base oil business

Base oil business

Joint development of next-generation

pneumococcal conjugate vaccines


Polyurethane plant (system house)

Lubricants business

Lubricants and base oil business


Signed for super engineering plastic

PPS supply and marketing

Shale gas development

in North America

LPG business

Mobile commerce platform

Fort Hills oil sands project


PET films, EVA sheets for solar cells,

polyurethane factory (system house)

Operating oil-producing field

Lubricants and base oil business


Esmeraldas oil refinery modernization

29

CANADA

USA

MEXICO

PERU

ECUADOR

ALBERTA

CALIFORNIA

OKLAHOMA

TEXAS GEORGIA

NEW JERSEY


and LNG project

30

Gas field development

Resources development


Mobile gift certificate service (cotoco)

JAPAN AUSTRALIA

SKMS / SK Management System

Happiness of Stakeholders

SK is fully aware that its employees are the focus of the

management and the pursuit of SUPEX can only be realized

when employees give their best. We believe that this will be

attained by our employees engaging in the “Voluntarily & Willingly

Brain Engagement (VWBE)” strategy.

Voluntarily & Willingly Brain Engagement (VWBE) “Pae-gi”

A representation of VWBE is Pae-gi, which means the

determination to succeed in one‟s work. Therefore, it is important

for SK People to embrace Pae-gi to create a favorable

environment for the SUPEX Quest. SK People equipped with

Pae-gi are self-motivated, challenge themselves by setting higher

goals and take progressive actions outside the box. They

endeavor to develop necessary competencies and achieve

higher performance through teamwork.

SK believes that its mission is to create greater happiness for its

numerous stakeholders. The ultimate goal that we pursue is

being happy by making those around us happy.

SUPEX Quest

In order to be a happier company, SK aims for the SUPEX, or

Super Excellent Levels. This is the highest goal that any person

can reach, and we continuously strive to achieve these levels.

32

Creation of

Greater

Happiness

Making Corporate

Contributions

Focus on Education,

Environment,

Health & Safety and

Social Services

Initiating and

Supporting

Social Enterprise

Established 14 SEs and

Supported 84 SEs by

Impact investing and

Entrepreneurship Program

Nurturing Social

Enterprise Ecosystem

Social Progress Credit:

Provide incentive based on

created social value

To-be Image

What We Do

33

This book consists of insights on how to promote

social enterprises and their ecosystem,

which will be suitable for social entrepreneurs,

academics in the relevant disciplines,

professionals providing intermediary support for

social entrepreneurs, as well as policy makers and

government officers.

This book offers the author‟s perspective

on the role of social enterprises in resolving

the social issue facing us today, and his vision on

how developing an ecosystem of social enterprises

will benefit a long-term development of our society.

Social Enterprises / 2014

34

KUWAIT

• Supporting the

Thukhur leaders

for Kuwait

Development

Initiative KENYA

• SK Happy Well

Development Project

ECUADOR

• Establishing Social Enterprises

• Helping to repair earthquake damage

VIETNAM

• Free surgery for children suffering

from facial deformities

• Building an IT training center

• Providing assistance to the Bihn Son region

COLOMBIA

• Supporting the

Korea Society

• Helping to repair

flood damage

BRAZIL

• Supporting repair of

damage caused by

Natural disasters

PERU

• Establishing

social enterprises

• Helping to repair

earthquake damage

CHINA

• Talent Development Project

• SK SUNNY China

• SK‟s Friendly Forest Development Project

• Emergency Assistance

• Medical Assistance

INDONESIA

• Emergency

relief project

• Installing an IT

training center

35

Documents

SK Group Overview€¦ · Total Sales (Unit: U$ Billion) EBIT (Unit: U$ Billion) 2013 2014 2015 2016 2017 2013 2014 2015 2016 139.9 INFORMATION, 145.7 4 102.5 6 5 6 5 05 FY2017 Revenue