Upload
others
View
1
Download
0
Embed Size (px)
Citation preview
November 2010
Investor Presentation
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.
3
1. Wireless market overview
Contents
2. Financial results
4. Shareholder return
3. Growth strategy
· B2B business
· Service platform
· B2C business
4
1. Wireless market overview
70.1%75.9% 79.4%
83.2%89.8% 93.8%
98.3%102.8%
5
Overview of Korean wireless market
Wireless market trend Wireless market’s total and data revenue
Source: Company data
(Units: Million, %) (Units: KRW Tn)
Despite the Korean wireless market showing penetration rate of over 100%, the market is expected to show continued increase in market penetration and growth in revenue
Total subscribers WCDMA subscribersPenetration
Total revenue Total data revenue
2003 2004 2005 2006 2007 2008 2009
33.636.7 38.3
40.243.5 45.6
47.9
0.2 5.716.5
24.8
50.2
3Q2010
29.3
1Q 09 2Q 09 3Q 09 4Q 09 1Q 10 2Q 10 3Q 10
5.25
5.56 5.615.68
5.575.74
1.01 1.07 1.081.14 1.12 1.20
5.83
1.28
6
Competitive landscape
Market share by subscribers
Source: Company data, as of September 30, 2010
SKT50.7%
KT (Mobile)31.5%
LG U+ (Mobile)17.8%
(Units: 000s, %)
25,44515,831
8,933
SK Telecom continues to demonstrate undisputed market leadership
Mobile service revenue(Units: KRW Bn)
SKT KT LGU+
3,181
1,766
883
3Q 2010
7
2. Financial results
Financial results – 3Q 2010
8
Revenue
Marketing Expense*(Ratio to Revenue)
Operating Income
EBITDA
Net Income
Capital Expenditure
3Q 2010
3,181
751(23.9%)
519
1,065
364
487
3Q 2009(KRW Bn)
YoY (%)
△1.5%(△1.0%p)
△16.1%
△3.7%
△12.5%
69.3%
4.1%3,057
762(24.9%)
619
1,106
416
288
Note: * Marketing Expense to Sales ratio is calculated in accordance with KCC guideline
2Q 2010 QoQ (%)
△2.8%(△1.3%p)
△10.8%
△1.9%
0.9%
63.8%
3.0%3,089
772(25.3%)
582
1,085
364
297
9
3. Growth strategy
· B2B business
· Service platform
· B2C business
0
50
100
150
200
250
300
350
'09 '10 1Q '10 2Q '10 3Q '10 4Q
B2C business Smartphone adoption impact
Adoption trend of smartphone and new data price plan
(Units: Million)
2.50
1.22
0.73
2.33
1.21
0.67
0.22
All-in-one price plan users (55 or above)
41%
59%40%36%64% 60%
56%
44%
All-in-one price plan users (55 below)
0.46
Accumulated smartphone users
3.30(E)
Galaxy S6/22
Unlimiteddata service
8/16
Currently 80%
of new subscribers to
All-in-one price plan
are taking All-in-one
55 or higher which
provide unlimited data
service
Smartphone and new data price plan users
10
B2C business
(Units: KRW 1000s)
Smartphone adoption impact
Smartphone ARPU has increased 4% each for the last two quarters to KRW 57,000
Further growth expected due to adoption of high-end smartphone like Galaxy S
57
55
53 240
’10 1 Q 2Q 3Q
4%
4%
Increased ARPU of smartphoneARPU of smartphone
Smartphone ARPU
11
B2C business Competitive data-centric network
Network portfolio strategy
Deploy 6FA WCDMA service from 4FA service
3FA for data, 3FA for voice
Introduce LTE service in 2011Nation wide
1
6 sector solution to double the data capacity at 1,000BTSsBase
TransceiverStation area
2
Build over 10,000 data Femtocell* in 2011
17,000 Wi-Fi zones in 2010, more will be built in 2011
*Data Femtocell: Low output, extra small cellular base station for in-building use
Data heavyarea
(such as in-building)
3
Meet the wireless internet demand which is expected to increase 20~30 times for the next three years
12
B2B business Growth of B2B business
Growing mobile office numbersGrowing revenue
2Q 3Q
190.735%
660257.0
580
340 240
80
’09 ’10 3Q ’10 4QE
(Units: Company)(Units: KRW Bn)
Supplied smartphone to POSCO, KBS etc.
Constructed mobile office, mobile groupware or SFA* *SFA: Sales Force Automation
Number of corporate customers installing mobile office is expected to increase 94% YOY
B2B sales of 3Q was KRW 257 billion, 35% increase QoQ
SKT will strive to achieve the sales target of KRW 1 trillion for 2010
240
8071%
14%
Increased B2B salesB2B sales
66.3
Increased number of companies installing m-officeNumber of companies installing m-office
13
Progress
Progress & planCategory
Providing mobile office settingsto corporate to enhance their productivity and efficiency
B2B business
Content
’10 3Q: 580 companies
Striving to expand ConnectedWorkforce
ConnectedManagement
ConnectedHealthcare
Developing and expandingmobile workforce service by supplying mobile businesssolution specially fit SMB* needs
*SMB: Small and Medium Businesses
Setting up HIS**, EMR*** formedical institutions to operateu-healthcare platform andindividualized health portals
**HIS: Hospital Information System***EMR: Electronic Medical Record
’10 4Q: Service commercializationtogether with Duzonbizon
’10 4Q: SK Consortium for smartcare service will open pilot serviceEstablishing JV with majorgeneral hospital before longCurrently developing HIS andother healthcare solutions
14
Progress
Progress & planCategory
Providing ICT-based smallbranches to financial institutions
B2B business
Content
’11 1H: Service commercializationtogether with Korea Exchange Bank
Planning expansion to financeindustry other than banking, alsoto overseas
Developing education serviceplatform by combining educationcontent and ICTPreparing overseas expansionincluding China
Providing safety, security andmaintenance information of car through MIV* technology
*MIV: Mobile In Vehicle
’10 4Q: Complete R&D ’11 1Q: Open pilot service’11 2Q: Service commercializationtogether with Chungdahm Learning
’11 4Q-’12 1Q: Applying high-techremote control system to RenaultSamsung Motors over SM5
Keep discussing with otherdomestic/foreign companies
ConnectedFinance
ConnectedLearning
ConnectedCar
15
Service platform SKT’s service platform
Service platform
Convergence of necessary software and hardware for creating various services
Hardware
O/S kernel
TerminalO/S
Middleware
Application
Android OS
Linux
Galaxy S
Flash
YouTube
SKT’s target area(Service platform)
Service platform
Platform
Platform providing various services not using hardware or O/S kernel but software
16
Service platform Strategy
Expansion strategy
Category Major service platform
LBS
Commerce
Messaging
Contentdistribution
e-book, T store,TV portal, PM*
SNS
B2B Connected health/car/education,smart office
Common platform
ISF**, personalization engine, OMS***, WPAN mobile ad
*PM: Personal Media
**ISF: Intelligent Service Framework
***OMS: Opinion Mining System
Major service platform
Open API**** on the service platform- T map, T store, SMS/MMS, etc.
Focus on service platform development - Established Product Development Factory
within the service division
Total KRW 1 trillion of CapEx/OpEx will be made over the next 3 years
In the future, much of the non-network investment will be reassigned to this area
****API: Application Programming Interface
Proactively support killer service platforms of marketable/technology proven businesses
17
Service platform example
By disclosing the API of T map service, other application developers can create many kinds of business model based on T map service
Ultimately creating family of T map related business models(e.g How to enjoy the best restaurant)
Example: LBS – T map
Fast road guidance wireless update, simple sync
Application developer
Service platform
18
19
4. Shareholder return
20
Shareholder return
Special cash dividend: 2007 (KRW 100 Bn)
Payout ratio DPS
2006
8,000
2008
9,400
2010
Cash dividend amount to be similar to 2009
Completed share buy back* in October: total amount KRW 210 Bn
Occasionally cash dividend has been supplemented by share buyback
Cashdividend(KRW)
Note: * These shares cannot be cancelled according to the Korean law
2009
9,400
2007
8,000
1,400
2005
9,400
2008
Totalshareholder
return(KRW Bn)
20072005 2006
791 801 775 680119209 93
2009Share buyback
21
Q & A