1. 1 SK telecom A New Outlook on CMS How can CMS add value to SK Telecom within the CIC? CMS Team #1

2. 2 SK telecom 2 CURRENT CHALLENGES 3 RECOMMENDATIONS 5 SUMMARY TABLE OF CONTENTS 1 CMS IN THE CIC SYSTEM 4 EFFECTS

3. 3 SK telecom 1. CMS IN THE CIC SYSTEM Current organization structure and functions of CMS.

4. 4 SK telecom Previous Organization Structure SK Telecom’s original organization structure was very similar to many other companies in Korea. CEO Global Biz. C&IMNO Previous Structure Supporting

5. 5 SK telecom Organization Structure In 2008, SK Telecom implemented the CIC(Company In Company) system. CEO Global Biz. C&IMNO Supporting CMS Previous Structure

6. 6 SK telecom Organization Structure Supporting functions moved into CMS and a TTC(Top Team Coordinator) was added under the CEO to coordinate each CIC. CEO Global Biz. C&IMNO Supporting CMS TTC All supporting functions became the CMS CIC. The TTC is a committee that oversees a collaboration within the CIC system. Current Structure

7. 7 SK telecom 1 Specialize in their own business 2 Re-allocate key responsibilities 3 Greater flexibility to react to an external environment 4 Increases global competency Why the CIC System?

8. 8 SK telecom What exactly is CMS now? CMS has many functions that support each CIC and SK Telecom as a whole. Financial Services System Innovation Corporate Center Legal Services CR Strategy Public Relations Strategy Planning HR/FMI CMS

9. 9 SK telecom Examples of Specific Functions #1 The PR function in the CMS includes overseeing branding policies and PR campaigns that affect SK Telecom as a whole. Financial Services System Innovation Corporate Center Legal Services CR Strategy Public Relations Strategy Planning HR/FMI CMS Public Relations Responsible for corporate PR campaigns. Manages the corporate brand.

10. 10 SK telecom Examples of Specific Functions #2 Financial services in the CMS include functions such as Accounting, Purchasing, Asset Management. Financial Services System Innovation Corporate Center Legal Services CR Strategy Public Relations Strategy Planning HR/FMI CMS Financial Services Controls corporate finance. Accounting, Purchasing, Asset Management.

11. 11 SK telecom 2 CURRENT CHALLENGES 3 RECOMMENDATIONS 5 SUMMARY TABLE OF CONTENTS 1 CMS IN THE CIC SYSTEM 4 EFFECTS

12. 12 SK telecom 2. CURRENT CHALLENGES What we are facing now.

13. 13 SK telecom Challenge from the Restructuring Core Issue Decentralization

14. 14 SK telecom 1 Processes became un-standardized 3 Harder to maintain common corporate culture 2 Duplication of the work Decentralization As SK Telecom broke into 4 separate CICs, several difficulties arose due to decentralization. 4 Less internal communication and collaboration

15. 15 SK telecom 2 CURRENT CHALLENGES 3 RECOMMENDATIONS 5 SUMMARY TABLE OF CONTENTS 1 CMS IN THE CIC SYSTEM 4 EFFECTS

16. 16 SK telecom 3. RECOMMENDATIONS CMS Restructuring.

17. 17 SK telecom Recommendation We recommend structuring CMS into 3 distinct groups. CMS Strategy Coordination Team Value Center Shared Service Center