SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form6-K
REPORT OF FOREIGN PRIVATE ISSUER
PURSUANT TO RULE13a-16 OR15d-16 OF
THE SECURITIES EXCHANGE ACT OF 1934
For the month of February 2020
Commission File Number1-14926
KT Corporation
(Translation of registrant’s name into English)
90,Buljeong-ro,
Bundang-gu,Seongnam-si,
Gyeonggi-do,
Korea
(Address of principal executive offices)
Indicate by check mark whether the registrant files or will file annual reports under cover of Form20-F or Form40-F:
Form20-F ☒ Form40-F ☐
Indicate by check mark if the registrant is submitting the Form6-K in paper as permitted by RegulationS-T Rule 101(b)(1): ☐
Indicate by check mark if the registrant is submitting the Form6-K in paper as permitted by RegulationS-T Rule 101(b)(7): ☐
Indicate by check mark whether by furnishing the information contained in this Form, the registrant is also thereby furnishing the information to the Commission pursuant to Rule12g3-2(b) under the Securities Exchange Act of 1934.
Yes ☐ No ☒
If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule12g3-2(b):82-
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.
| Dated: | February 6, 2020 | |
| KT Corporation | ||
| By: | /s/ Seunghoon Chi | |
| Name: | Seunghoon Chi | |
| Title: | Senior Vice President Investor Relations Officer | |
| By: | /s/ Youngkyoon Yun | |
| Name: | Youngkyoon Yun | |
| Title: | General Manager IR Team Head | |
KT 2019 Earnings ReleaseKT 2019 Earnings Release
Disclaimer This presentation has been prepared by KT Corp.(the “Company”) in accordance with K-IFRS. This presentation contains forward- looking statements, which are subject to risks, uncertainties, and assumptions. This presentation is being presented solely for your information and is subject to change without notice. No presentation or warranty, expressed or implied, is made and no reliance should be placed on the accuracy, actuality, fairness, or completeness of the information presented. st st The Company has applied new accounting standard of K-IFRS 1115 as of Jan 1 , 2018 and K-IFRS 1116 ‘Leases’ as of Jan 1 , 2019. There are no obligation to apply the new standard to previous financial statements. The Company, its affiliates 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. Any decision to purchase shares of the Company could be made solely on the Basis of information, which has been publicly filed with the Securities and Exchange Commission or the Korea Stock Exchange and distributed to all investors. 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. If you have any related questions to this material, please contact IR department. Tel : +82-2-3495-3557, 3254, 3564, 5343 Fax : +82-2-3495-5917 1Disclaimer This presentation has been prepared by KT Corp.(the “Company”) in accordance with K-IFRS. This presentation contains forward- looking statements, which are subject to risks, uncertainties, and assumptions. This presentation is being presented solely for your information and is subject to change without notice. No presentation or warranty, expressed or implied, is made and no reliance should be placed on the accuracy, actuality, fairness, or completeness of the information presented. st st The Company has applied new accounting standard of K-IFRS 1115 as of Jan 1 , 2018 and K-IFRS 1116 ‘Leases’ as of Jan 1 , 2019. There are no obligation to apply the new standard to previous financial statements. The Company, its affiliates 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. Any decision to purchase shares of the Company could be made solely on the Basis of information, which has been publicly filed with the Securities and Exchange Commission or the Korea Stock Exchange and distributed to all investors. 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. If you have any related questions to this material, please contact IR department. Tel : +82-2-3495-3557, 3254, 3564, 5343 Fax : +82-2-3495-5917 1
Contents 1 Financial Highlights 2 Business Overviews 3 Q&A 4 AppendixContents 1 Financial Highlights 2 Business Overviews 3 Q&A 4 Appendix
K-IFRS / Consolidated 1-1 Financial Highlights Income Statement (Unit: KRW bn) □ Operating Revenue 4Q18 3Q19 4Q19 QoQ YoY 2018 2019 YoY KRW 24.3tn, YoY +3.8% Operating Revenue 5,994.5 6,213.7 6,195.5 -0.3% 3.4% 23,460.1 24,342.0 3.8% § Service Revenue KRW 20.2tn, YoY +1.3% Service Revenue 5,021.1 5,058.1 5,144.5 1.7% 2.5% 19,985.2 20,246.3 1.3% Merchandise Revenue 973.4 1,155.6 1,050.9 -9.1% 8.0% 3,475.0 4,095.8 17.9% □ Operating Income KRW 1.15tn, YoY -8.8% Operating Expense 5,898.7 5,901.2 6,047.2 2.5% 2.5% 22,198.6 23,191.0 4.5% Operating Income 95.8 312.5 148.2 -52.5% 54.8% 1,261.5 1,151.0 -8.8% □ Net Income Margin 1.6% 5.0% 2.4% -2.6%p 0.8%p 5.4% 4.7% -0.7%p KRW 669.3bn, YoY -12.2% Deficit Deficit Deficit Non-op. Income/loss -83.3 -42.2 -120.2 -170.8 -171.4 Increased Increased Increased □ EBITDA Income before taxes 12.5 270.3 28.1 -89.6% 124.2% 1,090.7 979.7 -10.2% KRW 4.79tn, YoY +5.4% Net Income 18.1 213.3 -6.8 TR TR 762.3 669.3 -12.2% Margin 0.3% 3.4% -0.1% -3.5%p -0.4%p 3.2% 2.7% -0.5%p EBITDA 908.2 1,209.8 1,079.3 -10.8% 18.8% 4,543.3 4,790.0 5.4% Margin 15.2% 19.5% 17.4% -2.1%p 2.2%p 19.4% 19.7% 0.3%p 3K-IFRS / Consolidated 1-1 Financial Highlights Income Statement (Unit: KRW bn) □ Operating Revenue 4Q18 3Q19 4Q19 QoQ YoY 2018 2019 YoY KRW 24.3tn, YoY +3.8% Operating Revenue 5,994.5 6,213.7 6,195.5 -0.3% 3.4% 23,460.1 24,342.0 3.8% § Service Revenue KRW 20.2tn, YoY +1.3% Service Revenue 5,021.1 5,058.1 5,144.5 1.7% 2.5% 19,985.2 20,246.3 1.3% Merchandise Revenue 973.4 1,155.6 1,050.9 -9.1% 8.0% 3,475.0 4,095.8 17.9% □ Operating Income KRW 1.15tn, YoY -8.8% Operating Expense 5,898.7 5,901.2 6,047.2 2.5% 2.5% 22,198.6 23,191.0 4.5% Operating Income 95.8 312.5 148.2 -52.5% 54.8% 1,261.5 1,151.0 -8.8% □ Net Income Margin 1.6% 5.0% 2.4% -2.6%p 0.8%p 5.4% 4.7% -0.7%p KRW 669.3bn, YoY -12.2% Deficit Deficit Deficit Non-op. Income/loss -83.3 -42.2 -120.2 -170.8 -171.4 Increased Increased Increased □ EBITDA Income before taxes 12.5 270.3 28.1 -89.6% 124.2% 1,090.7 979.7 -10.2% KRW 4.79tn, YoY +5.4% Net Income 18.1 213.3 -6.8 TR TR 762.3 669.3 -12.2% Margin 0.3% 3.4% -0.1% -3.5%p -0.4%p 3.2% 2.7% -0.5%p EBITDA 908.2 1,209.8 1,079.3 -10.8% 18.8% 4,543.3 4,790.0 5.4% Margin 15.2% 19.5% 17.4% -2.1%p 2.2%p 19.4% 19.7% 0.3%p 3
K-IFRS / Consolidated 1-2 Financial Highlights Operating Expenses (Unit: KRW bn) □ Operating Expenses 4Q18 3Q19 4Q19 QoQ YoY 2018 2019 YoY KRW 23.2tn, YoY +4.5% Operating Expenses 5,898.7 5,901.2 6,047.2 2.5% 2.5% 22,198.6 23,191.0 4.5% § Labor Cost KRW 3.95tn, YoY +2.7% Labor Cost 1,006.1 959.4 1,001.8 4.4% -0.4% 3,845.8 3,951.1 2.7% § General Expense General Expense 2,499.1 2,433.5 2,579.7 6.0% 3.2% 9,801.4 9,799.6 -0.0% KRW 9.80tn, YoY -0.0% Cost of Service Provided 681.9 648.0 658.9 1.7% -3.4% 2,620.2 2,514.2 -4.0% § Cost of Service Provided Selling Expense 606.0 592.3 499.5 -15.7% -17.6% 2,034.1 2,277.9 12.0% KRW 2.51tn, YoY -4.0% Cost of Merchandise 1,105.6 1,268.0 1,307.3 3.1% 18.2% 3,897.0 4,648.1 19.3% § Cost of Merchandise KRW 4.65tn, YoY +19.3% (Unit: KRW bn) 4Q18 3Q19 4Q19* QoQ YoY 2018 2019* YoY □ Marketing Expenses Marketing Expenses 597.9 720.2 693.2 -3.8% 15.9% 2,312.1 2,738.2 18.4% KRW 2.74tn, YoY +18.4% ※ KT Separate, Profit from handset sales adjusted / Selling expenses + Advertising expenses ※ On 4Q19, membership pts used in FY19 are excluded from marketing exp. and deducted from revenue 4K-IFRS / Consolidated 1-2 Financial Highlights Operating Expenses (Unit: KRW bn) □ Operating Expenses 4Q18 3Q19 4Q19 QoQ YoY 2018 2019 YoY KRW 23.2tn, YoY +4.5% Operating Expenses 5,898.7 5,901.2 6,047.2 2.5% 2.5% 22,198.6 23,191.0 4.5% § Labor Cost KRW 3.95tn, YoY +2.7% Labor Cost 1,006.1 959.4 1,001.8 4.4% -0.4% 3,845.8 3,951.1 2.7% § General Expense General Expense 2,499.1 2,433.5 2,579.7 6.0% 3.2% 9,801.4 9,799.6 -0.0% KRW 9.80tn, YoY -0.0% Cost of Service Provided 681.9 648.0 658.9 1.7% -3.4% 2,620.2 2,514.2 -4.0% § Cost of Service Provided Selling Expense 606.0 592.3 499.5 -15.7% -17.6% 2,034.1 2,277.9 12.0% KRW 2.51tn, YoY -4.0% Cost of Merchandise 1,105.6 1,268.0 1,307.3 3.1% 18.2% 3,897.0 4,648.1 19.3% § Cost of Merchandise KRW 4.65tn, YoY +19.3% (Unit: KRW bn) 4Q18 3Q19 4Q19* QoQ YoY 2018 2019* YoY □ Marketing Expenses Marketing Expenses 597.9 720.2 693.2 -3.8% 15.9% 2,312.1 2,738.2 18.4% KRW 2.74tn, YoY +18.4% ※ KT Separate, Profit from handset sales adjusted / Selling expenses + Advertising expenses ※ On 4Q19, membership pts used in FY19 are excluded from marketing exp. and deducted from revenue 4
K-IFRS / Consolidated 1-3 Financial Highlights Financial Position (Unit: KRW bn) 4Q 18 3Q 19 4Q 19 QoQ YoY □ Debt Position § Borrowings: KRW 7.30tn Assets 32,188.8 33,661.3 34,061.3 1.2% 5.8% 2,703.4 2,128.4 2,305.9 Cash & Cash Equivalents 8.3% -14.7% § Net Debt: KRW 4.99tn Liabilities 17,457.6 18,430.1 18,874.3 2.4% 8.1% □ Debt Ratio Borrowings 6,648.3 6,408.3 7,298.9 13.9% 9.8% 14,731.3 15,231.1 15,187.0 Equity -0.3% 3.1% § Debt to Equity: 124.3% Capital Stock 1,564.5 1,564.5 1,564.5 0.0% 0.0% § Net Debt to Equity: 32.9% Net Debt 3,944.9 4,279.9 4,993.0 16.7% 26.6% 118.5% 121.0% 124.3% Debt / Equity 3.3%p 5.8%p Net Debt / Equity 26.8% 28.1% 32.9% 4.8%p 6.1%p Debt to Equity 125.6% 124.3% 123.1% 123.1% 121.0% 118.5% 116.5% Net Debt to Equity 108.6% 34.7% 32.9% 30.2% 26.8% 27.3% 26.7% 28.1% 24.8% 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 5K-IFRS / Consolidated 1-3 Financial Highlights Financial Position (Unit: KRW bn) 4Q 18 3Q 19 4Q 19 QoQ YoY □ Debt Position § Borrowings: KRW 7.30tn Assets 32,188.8 33,661.3 34,061.3 1.2% 5.8% 2,703.4 2,128.4 2,305.9 Cash & Cash Equivalents 8.3% -14.7% § Net Debt: KRW 4.99tn Liabilities 17,457.6 18,430.1 18,874.3 2.4% 8.1% □ Debt Ratio Borrowings 6,648.3 6,408.3 7,298.9 13.9% 9.8% 14,731.3 15,231.1 15,187.0 Equity -0.3% 3.1% § Debt to Equity: 124.3% Capital Stock 1,564.5 1,564.5 1,564.5 0.0% 0.0% § Net Debt to Equity: 32.9% Net Debt 3,944.9 4,279.9 4,993.0 16.7% 26.6% 118.5% 121.0% 124.3% Debt / Equity 3.3%p 5.8%p Net Debt / Equity 26.8% 28.1% 32.9% 4.8%p 6.1%p Debt to Equity 125.6% 124.3% 123.1% 123.1% 121.0% 118.5% 116.5% Net Debt to Equity 108.6% 34.7% 32.9% 30.2% 26.8% 27.3% 26.7% 28.1% 24.8% 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 5
K-IFRS / Separate 1-4 Financial Highlights CAPEX (Unit: KRW bn) Access Network □ 2019 CAPEX Backbone Network 3,711 § Executed KRW 3.26tn B2B Others § Focused on access network 3,313 3,257 investment for 5G □ CAPEX Breakdown 2,514 2,397 2,359 § Access Network: KRW 2.20tn 2,475 2,250 1,870 § Backbone Network: KRW 408.0bn 1,977 2,199 § B2B: KRW 366.5bn 1,362 1,133 1,316 1,196 § Others: KRW 283.7bn 1,035 466 476 452 428 241 408 492 497 448 261 394 517 367 362 298 736 305 499 330 284 258 259 227 189 2012 2013 2014 2015 2016 2017 2018 2019 6K-IFRS / Separate 1-4 Financial Highlights CAPEX (Unit: KRW bn) Access Network □ 2019 CAPEX Backbone Network 3,711 § Executed KRW 3.26tn B2B Others § Focused on access network 3,313 3,257 investment for 5G □ CAPEX Breakdown 2,514 2,397 2,359 § Access Network: KRW 2.20tn 2,475 2,250 1,870 § Backbone Network: KRW 408.0bn 1,977 2,199 § B2B: KRW 366.5bn 1,362 1,133 1,316 1,196 § Others: KRW 283.7bn 1,035 466 476 452 428 241 408 492 497 448 261 394 517 367 362 298 736 305 499 330 284 258 259 227 189 2012 2013 2014 2015 2016 2017 2018 2019 6
Contents 1 Financial Highlights 2 Business Overviews 3 Q&A 4 AppendixContents 1 Financial Highlights 2 Business Overviews 3 Q&A 4 Appendix
K-IFRS / Consolidated 2-1 Business Overview Wireless (Unit: KRW bn) 4Q18 3Q19 4Q19 QoQ YoY 2018 2019 YoY □ Wireless Revenue up by 0.2% YoY § Service revenue up by 0.7% YoY Wireless 1,689.6 1,756.4 1,738.5 -1.0% 2.9% 6,954.1 6,970.7 0.2% due to 5G subscriber increase Service 1,616.8 1,656.0 1,640.1 -1.0% 1.4% 6,523.5 6,566.3 0.7% Interconnection 72.7 100.4 98.3 -2.1% 35.2% 430.6 404.4 -6.1% (Unit: 1,000) [Wireless Subscriber] □ Net subscriber addition continues 21,922 21,771 21,549 21,333 21,120 20,920 20,662 20,378 § Wireless net adds of 802K 419 1,055 1,419 § 5G net additions of 1.4 million 14,090 14,124 14,165 14,049 13,993 § 5G penetration rate to be 10% 13,968 (Incl. 5G) 13,952 (Incl. 5G) (Incl. 5G) 13,918 of Handset subscribers 3,856 3,985 3,691 3,416 3,529 3,254 3,065 2,877 3,644 3,698 3,711 3,755 3,768 3,792 3,772 3,584 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 MVNO 2nd Device/IoT Handset 5G 8K-IFRS / Consolidated 2-1 Business Overview Wireless (Unit: KRW bn) 4Q18 3Q19 4Q19 QoQ YoY 2018 2019 YoY □ Wireless Revenue up by 0.2% YoY § Service revenue up by 0.7% YoY Wireless 1,689.6 1,756.4 1,738.5 -1.0% 2.9% 6,954.1 6,970.7 0.2% due to 5G subscriber increase Service 1,616.8 1,656.0 1,640.1 -1.0% 1.4% 6,523.5 6,566.3 0.7% Interconnection 72.7 100.4 98.3 -2.1% 35.2% 430.6 404.4 -6.1% (Unit: 1,000) [Wireless Subscriber] □ Net subscriber addition continues 21,922 21,771 21,549 21,333 21,120 20,920 20,662 20,378 § Wireless net adds of 802K 419 1,055 1,419 § 5G net additions of 1.4 million 14,090 14,124 14,165 14,049 13,993 § 5G penetration rate to be 10% 13,968 (Incl. 5G) 13,952 (Incl. 5G) (Incl. 5G) 13,918 of Handset subscribers 3,856 3,985 3,691 3,416 3,529 3,254 3,065 2,877 3,644 3,698 3,711 3,755 3,768 3,792 3,772 3,584 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 MVNO 2nd Device/IoT Handset 5G 8
K-IFRS / Consolidated 2-2 Business Overview Fixed Line (Unit: KRW bn) 4Q18 3Q19 4Q19 QoQ YoY 2018 2019 YoY □ Fixed Line Revenue down by 1.0% YoY Fixed Line 1,178.4 1,168.2 1,172.9 0.4% -0.5% 4,745.1 4,697.1 -1.0% Telephony 417.8 396.7 382.5 -3.6% -8.4% 1,708.3 1,578.5 -7.6% □ Telephony Broadband 500.3 503.3 503.0 -0.1% 0.5% 1,998.6 2,015.7 0.9% § Revenue down by 7.6% YoY Line lease 260.4 268.3 287.4 7.1% 10.4% 1,038.2 1,102.8 6.2% on subscriber and usage drop [Broadband Subscriber] (Unit: 1,000) □ Broadband 8,962 8,904 8,849 8,782 8,729 8,698 8,653 8,659 § Revenue up by 0.9% YoY on GiGA and net subscriber increase 61.0% 60.1% 59.0% 57.6% 56.0% 54.2% 51.9% 48.9% 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 Subscribers % of GiGA 9K-IFRS / Consolidated 2-2 Business Overview Fixed Line (Unit: KRW bn) 4Q18 3Q19 4Q19 QoQ YoY 2018 2019 YoY □ Fixed Line Revenue down by 1.0% YoY Fixed Line 1,178.4 1,168.2 1,172.9 0.4% -0.5% 4,745.1 4,697.1 -1.0% Telephony 417.8 396.7 382.5 -3.6% -8.4% 1,708.3 1,578.5 -7.6% □ Telephony Broadband 500.3 503.3 503.0 -0.1% 0.5% 1,998.6 2,015.7 0.9% § Revenue down by 7.6% YoY Line lease 260.4 268.3 287.4 7.1% 10.4% 1,038.2 1,102.8 6.2% on subscriber and usage drop [Broadband Subscriber] (Unit: 1,000) □ Broadband 8,962 8,904 8,849 8,782 8,729 8,698 8,653 8,659 § Revenue up by 0.9% YoY on GiGA and net subscriber increase 61.0% 60.1% 59.0% 57.6% 56.0% 54.2% 51.9% 48.9% 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 Subscribers % of GiGA 9
K-IFRS / Consolidated 2-3 Business Overview Media / Contents (Unit: KRW bn) 4Q18 3Q19 4Q19 QoQ YoY 2018 2019 YoY □ Media/Contents up by 13.5% YoY Media / Contents 648.7 701.3 707.6 0.9% 9.1% 2,414.3 2,740.0 13.5% □ Media Media 508.0 548.7 554.2 1.0% 9.1% 1,942.8 2,159.7 11.2% § IPTV net adds of 500K Contents 140.7 152.7 153.4 0.5% 9.0% 471.5 580.3 23.1% § Revenue up by 11.2% YoY [IPTV Subscriber] on high-ARPU subscriber expansion (Unit: 1,000) and platform revenue increase 8,351 8,229 8,113 7,966 7,851 7,775 7,672 7,573 □ Contents § Revenue up by 23.1% YoY on KTH’s T-commerce revenue growth and Genie Music’s subscriber expansion 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 ※ Number of IPTV subscribers above deviates from MSIT’s released figure below following IPTV law - Number of KT pay TV subscriber is 7,081,177 in 1H 2019 (6 month average) 10K-IFRS / Consolidated 2-3 Business Overview Media / Contents (Unit: KRW bn) 4Q18 3Q19 4Q19 QoQ YoY 2018 2019 YoY □ Media/Contents up by 13.5% YoY Media / Contents 648.7 701.3 707.6 0.9% 9.1% 2,414.3 2,740.0 13.5% □ Media Media 508.0 548.7 554.2 1.0% 9.1% 1,942.8 2,159.7 11.2% § IPTV net adds of 500K Contents 140.7 152.7 153.4 0.5% 9.0% 471.5 580.3 23.1% § Revenue up by 11.2% YoY [IPTV Subscriber] on high-ARPU subscriber expansion (Unit: 1,000) and platform revenue increase 8,351 8,229 8,113 7,966 7,851 7,775 7,672 7,573 □ Contents § Revenue up by 23.1% YoY on KTH’s T-commerce revenue growth and Genie Music’s subscriber expansion 1Q18 2Q18 3Q18 4Q18 1Q19 2Q19 3Q19 4Q19 ※ Number of IPTV subscribers above deviates from MSIT’s released figure below following IPTV law - Number of KT pay TV subscriber is 7,081,177 in 1H 2019 (6 month average) 10
K-IFRS / Consolidated 2-4 Business Overview Finance and Others (Unit: KRW bn) 4Q18 3Q19 4Q19 QoQ YoY 2018 2019 YoY □ Finance Revenue down by 1.0% YoY Finance 863.2 836.2 886.8 6.1% 2.7% 3,444.9 3,411.8 -1.0% Other Services 641.2 596.0 638.8 7.2% -0.4% 2,426.8 2,426.7 0.0% □ Other Services keep the previous IT / Solution 271.3 292.4 304.8 4.2% 12.4% 1,041.5 1,151.6 10.6% level § IT/Solution services revenue up Real Estate 128.5 81.3 82.7 1.7% -35.7% 474.6 345.0 -27.3% on continuous IDC business growth Others 241.3 222.2 251.3 13.1% 4.1% 910.6 930.2 2.2% § Real estate revenue down by 27.3% YoY due to less development projects (Unit: KRW bn) □ Merchandise Revenue up 4Q18 3Q19 4Q19 QoQ YoY 2018 2019 YoY by 17.9% YoY Merchandise 973.4 1,155.6 1,050.9 -9.1% 8.0% 3,475.0 4,095.8 17.9% 11K-IFRS / Consolidated 2-4 Business Overview Finance and Others (Unit: KRW bn) 4Q18 3Q19 4Q19 QoQ YoY 2018 2019 YoY □ Finance Revenue down by 1.0% YoY Finance 863.2 836.2 886.8 6.1% 2.7% 3,444.9 3,411.8 -1.0% Other Services 641.2 596.0 638.8 7.2% -0.4% 2,426.8 2,426.7 0.0% □ Other Services keep the previous IT / Solution 271.3 292.4 304.8 4.2% 12.4% 1,041.5 1,151.6 10.6% level § IT/Solution services revenue up Real Estate 128.5 81.3 82.7 1.7% -35.7% 474.6 345.0 -27.3% on continuous IDC business growth Others 241.3 222.2 251.3 13.1% 4.1% 910.6 930.2 2.2% § Real estate revenue down by 27.3% YoY due to less development projects (Unit: KRW bn) □ Merchandise Revenue up 4Q18 3Q19 4Q19 QoQ YoY 2018 2019 YoY by 17.9% YoY Merchandise 973.4 1,155.6 1,050.9 -9.1% 8.0% 3,475.0 4,095.8 17.9% 11
Contents 1 Financial Highlights 2 Business Overviews 3 Q&A 4 AppendixContents 1 Financial Highlights 2 Business Overviews 3 Q&A 4 Appendix
4-1 K-IFRS Income Statement (Unit: KRW bn) Consolidated 1Q 18 2Q 18 3Q 18 4Q 18 2018 1Q 19 2Q 19 3Q 19 4Q 19 2019 KT Separate 1Q 18 2Q 18 3Q 18 4Q 18 2018 1Q 19 2Q 19 3Q 19 4Q 19 2019 Operating revenue 5,710.2 5,806.9 5,948.5 5,994.5 23,460.1 5,834.4 6,098.5 6,213.7 6,195.5 24,342.0 Operating revenue 4,297.2 4,283.0 4,358.2 4,418.217,356.5 4,334.3 4,558.5 4,705.7 4,606.218,204.7 4,863.6 5,003.6 5,096.9 5,021.1 19,985.2 4,955.5 5,088.2 5,058.1 5,144.5 20,246.3 3,501.5 3,581.3 3,582.3 3,508.314,173.3 3,553.4 3,625.2 3,637.7 3,614.514,430.8 Service revenue Service revenue 1,740.8 1,763.7 1,760.1 1,689.6 6,954.1 1,732.5 1,743.4 1,756.4 1,738.5 6,970.7 1,713.8 1,735.5 1,731.4 1,655.0 6,835.7 1,705.2 1,715.7 1,729.4 1,708.6 6,858.8 Wireless Wireless Fixed line 1,198.8 1,181.5 1,186.4 1,178.4 4,745.1 1,167.0 1,188.9 1,168.2 1,172.9 4,697.1 Fixed line 1,186.4 1,176.3 1,174.7 1,167.1 4,704.6 1,156.2 1,161.6 1,154.6 1,141.4 4,613.9 Media/Contents 554.2 595.2 616.2 648.7 2,414.3 641.2 689.9 701.3 707.6 2,740.0 Media 318.7 357.2 353.5 362.3 1,391.7 377.4 408.4 410.5 410.4 1,606.6 Finance 832.7 866.7 882.3 863.2 3,444.9 839.0 849.8 836.2 886.8 3,411.8 Other service 282.5 312.3 322.6 323.9 1,241.4 314.7 339.5 343.2 354.1 1,351.5 Others 537.1 596.5 652.0 641.2 2,426.8 575.8 616.1 596.0 638.8 2,426.7 Merchandise rev. 846.6 803.4 851.5 973.4 3,475.0 878.9 1,010.4 1,155.6 1,050.9 4,095.8 Merchandise rev. 795.7 701.7 775.9 909.9 3,183.2 780.8 933.3 1,068.0 991.7 3,773.9 Operating expense 5,313.1 5,407.8 5,579.0 5,898.7 22,198.6 5,432.3 5,810.3 5,901.2 6,047.2 23,191.0 Operating expense 3,992.2 3,975.4 4,077.6 4,359.816,404.9 4,037.8 4,367.4 4,508.0 4,552.317,465.5 Service expense 4,368.6 4,499.6 4,640.2 4,793.2 18,301.6 4,489.4 4,680.3 4,633.2 4,739.9 18,542.9 Service expense 3,141.3 3,256.4 3,296.6 3,412.913,107.1 3,246.0 3,382.9 3,393.8 3,411.713,434.4 Labor expense 922.1 987.5 930.1 1,006.1 3,845.8 983.8 1,006.1 959.4 1,001.8 3,951.1 Labor expense 526.9 599.0 540.4 542.6 2,208.9 543.6 573.7 528.5 537.5 2,183.2 General expense 2,353.1 2,454.6 2,494.6 2,499.1 9,801.4 2,327.1 2,459.3 2,433.5 2,579.7 9,799.6 General expense 1,627.8 1,658.8 1,658.3 1,731.2 6,676.1 1,595.7 1,671.8 1,690.7 1,800.3 6,758.4 Cost of svc provided 649.7 609.8 678.8 681.9 2,620.2 606.3 601.0 648.0 658.9 2,514.2 Cost of svc provided 519.0 518.1 540.4 528.7 2,106.2 508.8 507.7 537.8 548.2 2,102.6 Selling expense 443.7 447.8 536.6 606.0 2,034.1 572.2 613.9 592.3 499.5 2,277.9 Selling expense 467.6 480.5 557.5 610.3 2,115.8 598.0 629.7 636.7 525.7 2,390.2 944.4 908.2 938.9 1,105.6 3,897.0 942.9 1,130.0 1,268.0 1,307.3 4,648.1 850.9 718.9 781.0 946.9 3,297.8 791.8 984.5 1,114.2 1,140.6 4,031.1 Merchandise cost Merchandise cost 397.1 399.1 369.5 95.8 1,261.5 402.1 288.2 312.5 148.2 1,151.0 305.0 307.7 280.6 58.4 951.6 296.4 191.1 197.7 53.9 739.2 Operating income Operating income N-OP income (loss) -44.1 -7.9 -35.4 -83.3 -170.8 -4.4 -4.7 -42.2 -120.2 -171.4 N-OP income (loss) 127.3 -21.3 -4.2 -167.7 -65.9 100.7 -1.8 -99.5 -112.0 -112.6 N-OP income 130.0 211.3 101.0 147.9 590.2 181.5 199.2 208.4 94.7 683.8 N-OP income 284.8 186.0 105.2 126.3 702.2 271.7 179.4 195.2 60.1 706.4 N-OP expense 173.2 220.5 133.5 228.4 755.6 186.5 199.1 252.3 214.0 851.9 N-OP expense 157.5 207.2 109.4 294.0 768.2 170.9 181.2 294.7 172.2 819.0 -1.0 1.2 -3.0 -2.7 -5.5 0.7 -4.8 1.7 -0.9 -3.3 Equity method (G/L) Income bf tax 353.0 391.2 334.0 12.5 1,090.7 397.7 283.6 270.3 28.1 979.7 Income bf tax 432.2 286.4 276.4 -109.3 885.7 397.2 189.4 98.2 -58.1 626.6 128.9 110.5 94.6 -5.6 328.4 138.0 80.5 57.0 34.9 310.4 115.4 76.5 73.8 58.8 324.5 104.5 49.7 25.8 14.8 194.8 Income tax Income tax 224.1 280.7 239.5 18.1 762.3 259.8 203.0 213.3 -6.8 669.3 Income from con. op 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 Income from disc. op Net income 224.1 280.7 239.5 18.1 762.3 259.8 203.0 213.3 -6.8 669.3 Net income 316.8 209.9 202.6 -168.1 561.2 292.6 139.7 72.4 -72.9 431.8 NI contribution to KT 197.0 251.0 222.5 18.0 688.5 231.1 173.9 189.7 24.4 619.2 EBITDA 1,228.9 1,221.2 1,184.9 908.2 4,543.3 1,309.5 1,191.3 1,209.8 1,079.3 4,790.0 EBITDA 1,046.6 1,039.4 1,003.1 779.7 3,868.8 1,108.1 997.7 999.3 872.6 3,977.8 EBITDA Margin 21.5% 21.0% 19.9% 15.2% 19.4% 22.4% 19.5% 19.5% 17.4% 19.7% EBITDA Margin 24.4% 24.3% 23.0% 17.6% 22.3% 25.6% 21.9% 21.2% 18.9% 21.9% 134-1 K-IFRS Income Statement (Unit: KRW bn) Consolidated 1Q 18 2Q 18 3Q 18 4Q 18 2018 1Q 19 2Q 19 3Q 19 4Q 19 2019 KT Separate 1Q 18 2Q 18 3Q 18 4Q 18 2018 1Q 19 2Q 19 3Q 19 4Q 19 2019 Operating revenue 5,710.2 5,806.9 5,948.5 5,994.5 23,460.1 5,834.4 6,098.5 6,213.7 6,195.5 24,342.0 Operating revenue 4,297.2 4,283.0 4,358.2 4,418.217,356.5 4,334.3 4,558.5 4,705.7 4,606.218,204.7 4,863.6 5,003.6 5,096.9 5,021.1 19,985.2 4,955.5 5,088.2 5,058.1 5,144.5 20,246.3 3,501.5 3,581.3 3,582.3 3,508.314,173.3 3,553.4 3,625.2 3,637.7 3,614.514,430.8 Service revenue Service revenue 1,740.8 1,763.7 1,760.1 1,689.6 6,954.1 1,732.5 1,743.4 1,756.4 1,738.5 6,970.7 1,713.8 1,735.5 1,731.4 1,655.0 6,835.7 1,705.2 1,715.7 1,729.4 1,708.6 6,858.8 Wireless Wireless Fixed line 1,198.8 1,181.5 1,186.4 1,178.4 4,745.1 1,167.0 1,188.9 1,168.2 1,172.9 4,697.1 Fixed line 1,186.4 1,176.3 1,174.7 1,167.1 4,704.6 1,156.2 1,161.6 1,154.6 1,141.4 4,613.9 Media/Contents 554.2 595.2 616.2 648.7 2,414.3 641.2 689.9 701.3 707.6 2,740.0 Media 318.7 357.2 353.5 362.3 1,391.7 377.4 408.4 410.5 410.4 1,606.6 Finance 832.7 866.7 882.3 863.2 3,444.9 839.0 849.8 836.2 886.8 3,411.8 Other service 282.5 312.3 322.6 323.9 1,241.4 314.7 339.5 343.2 354.1 1,351.5 Others 537.1 596.5 652.0 641.2 2,426.8 575.8 616.1 596.0 638.8 2,426.7 Merchandise rev. 846.6 803.4 851.5 973.4 3,475.0 878.9 1,010.4 1,155.6 1,050.9 4,095.8 Merchandise rev. 795.7 701.7 775.9 909.9 3,183.2 780.8 933.3 1,068.0 991.7 3,773.9 Operating expense 5,313.1 5,407.8 5,579.0 5,898.7 22,198.6 5,432.3 5,810.3 5,901.2 6,047.2 23,191.0 Operating expense 3,992.2 3,975.4 4,077.6 4,359.816,404.9 4,037.8 4,367.4 4,508.0 4,552.317,465.5 Service expense 4,368.6 4,499.6 4,640.2 4,793.2 18,301.6 4,489.4 4,680.3 4,633.2 4,739.9 18,542.9 Service expense 3,141.3 3,256.4 3,296.6 3,412.913,107.1 3,246.0 3,382.9 3,393.8 3,411.713,434.4 Labor expense 922.1 987.5 930.1 1,006.1 3,845.8 983.8 1,006.1 959.4 1,001.8 3,951.1 Labor expense 526.9 599.0 540.4 542.6 2,208.9 543.6 573.7 528.5 537.5 2,183.2 General expense 2,353.1 2,454.6 2,494.6 2,499.1 9,801.4 2,327.1 2,459.3 2,433.5 2,579.7 9,799.6 General expense 1,627.8 1,658.8 1,658.3 1,731.2 6,676.1 1,595.7 1,671.8 1,690.7 1,800.3 6,758.4 Cost of svc provided 649.7 609.8 678.8 681.9 2,620.2 606.3 601.0 648.0 658.9 2,514.2 Cost of svc provided 519.0 518.1 540.4 528.7 2,106.2 508.8 507.7 537.8 548.2 2,102.6 Selling expense 443.7 447.8 536.6 606.0 2,034.1 572.2 613.9 592.3 499.5 2,277.9 Selling expense 467.6 480.5 557.5 610.3 2,115.8 598.0 629.7 636.7 525.7 2,390.2 944.4 908.2 938.9 1,105.6 3,897.0 942.9 1,130.0 1,268.0 1,307.3 4,648.1 850.9 718.9 781.0 946.9 3,297.8 791.8 984.5 1,114.2 1,140.6 4,031.1 Merchandise cost Merchandise cost 397.1 399.1 369.5 95.8 1,261.5 402.1 288.2 312.5 148.2 1,151.0 305.0 307.7 280.6 58.4 951.6 296.4 191.1 197.7 53.9 739.2 Operating income Operating income N-OP income (loss) -44.1 -7.9 -35.4 -83.3 -170.8 -4.4 -4.7 -42.2 -120.2 -171.4 N-OP income (loss) 127.3 -21.3 -4.2 -167.7 -65.9 100.7 -1.8 -99.5 -112.0 -112.6 N-OP income 130.0 211.3 101.0 147.9 590.2 181.5 199.2 208.4 94.7 683.8 N-OP income 284.8 186.0 105.2 126.3 702.2 271.7 179.4 195.2 60.1 706.4 N-OP expense 173.2 220.5 133.5 228.4 755.6 186.5 199.1 252.3 214.0 851.9 N-OP expense 157.5 207.2 109.4 294.0 768.2 170.9 181.2 294.7 172.2 819.0 -1.0 1.2 -3.0 -2.7 -5.5 0.7 -4.8 1.7 -0.9 -3.3 Equity method (G/L) Income bf tax 353.0 391.2 334.0 12.5 1,090.7 397.7 283.6 270.3 28.1 979.7 Income bf tax 432.2 286.4 276.4 -109.3 885.7 397.2 189.4 98.2 -58.1 626.6 128.9 110.5 94.6 -5.6 328.4 138.0 80.5 57.0 34.9 310.4 115.4 76.5 73.8 58.8 324.5 104.5 49.7 25.8 14.8 194.8 Income tax Income tax 224.1 280.7 239.5 18.1 762.3 259.8 203.0 213.3 -6.8 669.3 Income from con. op 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 Income from disc. op Net income 224.1 280.7 239.5 18.1 762.3 259.8 203.0 213.3 -6.8 669.3 Net income 316.8 209.9 202.6 -168.1 561.2 292.6 139.7 72.4 -72.9 431.8 NI contribution to KT 197.0 251.0 222.5 18.0 688.5 231.1 173.9 189.7 24.4 619.2 EBITDA 1,228.9 1,221.2 1,184.9 908.2 4,543.3 1,309.5 1,191.3 1,209.8 1,079.3 4,790.0 EBITDA 1,046.6 1,039.4 1,003.1 779.7 3,868.8 1,108.1 997.7 999.3 872.6 3,977.8 EBITDA Margin 21.5% 21.0% 19.9% 15.2% 19.4% 22.4% 19.5% 19.5% 17.4% 19.7% EBITDA Margin 24.4% 24.3% 23.0% 17.6% 22.3% 25.6% 21.9% 21.2% 18.9% 21.9% 13
4-2 K-IFRS Balance Sheet (Unit: KRW bn) 1Q 18 2Q 18 3Q 18 4Q 18 1Q 19 2Q 19 3Q 19 4Q 19 1Q 18 2Q 18 3Q 18 4Q 18 1Q 19 2Q 19 3Q 19 4Q 19 Consolidated KT Separate 30,618.1 30,118.3 32,794.8 32,188.8 33,247.8 33,469.4 33,661.3 34,061.3 24,790.1 24,528.5 24,958.9 26,010.9 26,837.7 26,959.8 27,076.4 27,733.9 Assets Assets Current assets 11,078.6 10,847.2 13,812.8 11,894.3 12,396.1 11,818.3 11,716.7 11,725.1 Current assets 6,462.9 6,416.9 7,126.4 6,861.6 7,307.3 7,052.4 6,961.4 7,113.2 1,777.5 2,249.7 2,718.1 2,703.4 2,765.0 2,250.1 2,128.4 2,305.9 1,064.1 1,464.3 1,832.5 1,779.7 1,750.1 1,394.9 1,189.2 1,328.4 Cash & cash equi. Cash & cash equi. 3,636.7 3,740.1 3,951.1 3,874.9 4,129.5 4,364.8 4,108.2 3,931.5 2,997.9 2,977.9 2,969.0 2,968.8 3,357.8 3,451.0 3,300.9 3,108.0 Trade & other rec Trade & other rec Inventories 716.0 594.5 503.5 684.0 646.4 607.6 636.2 665.5 Inventories 450.7 360.4 298.5 465.3 446.4 404.8 437.6 477.1 Other current asset 4,948.5 4,262.9 6,640.1 4,631.9 4,855.2 4,595.7 4,843.9 4,822.2 Other current asset 1,950.3 1,614.4 2,026.4 1,647.8 1,753.1 1,801.7 2,033.7 2,199.7 - Prepaid_Contractcost 987.2 1,037.8 1,070.5 1,098.2 1,106.3 1,165.2 1,318.5 1,389.5 - Prepaid_Contractcost 1,005.8 1,048.7 1,090.8 1,127.8 1,134.5 1,210.6 1,368.1 1,432.1 - Contract assets 313.1 298.4 305.2 306.9 330.9 377.8 430.6 409.8 - Contract assets 289.1 274.7 282.5 285.3 300.2 339.1 384.4 382.2 Non-current assets 19,539.5 19,271.1 18,982.0 20,294.6 20,851.8 21,651.1 21,944.6 22,336.2 Non-current assets 18,327.1 18,111.6 17,832.5 19,149.3 19,530.4 19,907.4 20,115.0 20,620.6 Trade & other rec 689.2 770.1 678.8 810.6 690.4 867.9 943.6 1,238.0 Trade & other rec 624.1 705.1 611.1 766.3 641.7 806.4 888.0 1,186.5 P.P.E 13,161.7 13,000.0 12,855.3 13,068.3 12,811.1 13,192.8 13,349.7 13,785.3 P.P.E 11,008.2 10,777.8 10,645.3 10,864.4 10,656.7 10,914.5 11,092.4 11,448.0 5,688.5 5,501.0 5,448.0 6,415.7 7,350.3 7,590.4 7,651.3 7,312.9 6,694.9 6,628.7 6,576.1 7,518.6 8,232.0 8,186.5 8,134.5 7,986.2 Other current assets Other current assets - Prepaid_Contractcost 343.5 362.6 368.5 371.7 364.4 403.5 460.3 459.8 - Prepaid_Contractcost 331.4 336.9 349.8 360.0 351.4 398.9 457.0 444.2 - Contract assets 74.0 79.3 92.9 91.9 94.1 111.3 126.5 147.3 - Contract assets 64.0 69.3 82.5 81.6 84.0 101.4 112.5 95.8 16,474.1 15,681.3 18,093.3 17,457.6 18,509.4 18,464.8 18,430.1 18,874.3 12,320.3 11,869.2 12,091.3 13,299.2 14,099.7 14,076.5 14,122.0 14,837.2 Liabilities Liabilities Current liabilities 9,453.7 9,117.6 11,185.1 9,387.7 9,926.8 9,908.1 9,973.8 10,074.9 Current liabilities 5,899.2 5,943.6 5,822.2 5,908.5 6,283.8 6,238.7 6,471.1 6,728.1 Trade & other payables 6,974.4 6,199.7 8,700.2 6,948.2 7,264.0 7,980.9 7,709.7 7,597.5 Trade & other payables 4,074.7 3,602.2 3,887.7 4,002.4 4,472.4 5,118.4 5,006.4 5,025.7 1,534.3 1,940.0 1,417.0 1,368.5 1,149.0 583.6 915.7 1,185.7 1,230.1 1,688.7 1,179.3 1,181.4 948.5 380.4 744.7 1,052.5 Short-term borrowings Short-term borrowings 945.1 977.9 1,067.9 1,071.0 1,513.8 1,343.6 1,348.4 1,291.7 594.4 652.8 755.2 724.7 862.9 739.9 720.0 649.9 Others Others 270.8 281.0 289.3 300.7 302.9 304.4 304.1 313.6 274.4 280.0 287.4 301.1 302.1 306.7 304.2 314.5 - Contract liabilities - Contract liabilities Non-current liabilities 7,020.4 6,563.7 6,908.2 8,069.8 8,582.5 8,556.7 8,456.4 8,799.5 Non-current liabilities 6,421.1 5,925.5 6,269.1 7,390.7 7,815.9 7,837.8 7,650.9 8,109.1 Trade & other payables 667.9 661.0 658.2 1,409.3 1,132.7 1,110.0 1,125.6 1,082.2 Trade & other payables 728.4 711.1 706.2 1,460.1 1,524.9 1,476.1 1,454.2 1,371.5 5,155.0 4,664.5 4,953.2 5,279.8 5,641.1 5,673.2 5,492.6 6,113.1 5,007.5 4,515.1 4,815.8 5,132.1 5,502.7 5,549.0 5,371.1 5,975.5 Long-term borrowings Long-term borrowings Others 1,197.5 1,238.2 1,296.8 1,380.7 1,808.7 1,773.5 1,838.2 1,604.1 Others 685.2 699.4 747.1 798.5 788.3 812.6 825.6 762.1 - Contract liabilities 52.1 45.8 42.1 46.8 44.3 42.7 45.0 52.0 - Contract liabilities 47.6 41.7 38.8 43.7 41.4 40.1 42.4 49.1 14,144.0 14,437.0 14,701.5 14,731.3 14,738.5 15,004.6 15,231.1 15,187.0 12,469.8 12,659.4 12,867.6 12,711.7 12,738.0 12,883.3 12,954.3 12,896.7 Equity Equity 10,860.2 11,107.9 11,336.5 11,328.9 11,269.5 11,438.9 11,627.4 11,637.2 10,514.6 10,721.5 10,923.0 10,740.0 10,741.7 10,880.2 10,952.9 10,870.0 Retained earnings Retained earnings 144-2 K-IFRS Balance Sheet (Unit: KRW bn) 1Q 18 2Q 18 3Q 18 4Q 18 1Q 19 2Q 19 3Q 19 4Q 19 1Q 18 2Q 18 3Q 18 4Q 18 1Q 19 2Q 19 3Q 19 4Q 19 Consolidated KT Separate 30,618.1 30,118.3 32,794.8 32,188.8 33,247.8 33,469.4 33,661.3 34,061.3 24,790.1 24,528.5 24,958.9 26,010.9 26,837.7 26,959.8 27,076.4 27,733.9 Assets Assets Current assets 11,078.6 10,847.2 13,812.8 11,894.3 12,396.1 11,818.3 11,716.7 11,725.1 Current assets 6,462.9 6,416.9 7,126.4 6,861.6 7,307.3 7,052.4 6,961.4 7,113.2 1,777.5 2,249.7 2,718.1 2,703.4 2,765.0 2,250.1 2,128.4 2,305.9 1,064.1 1,464.3 1,832.5 1,779.7 1,750.1 1,394.9 1,189.2 1,328.4 Cash & cash equi. Cash & cash equi. 3,636.7 3,740.1 3,951.1 3,874.9 4,129.5 4,364.8 4,108.2 3,931.5 2,997.9 2,977.9 2,969.0 2,968.8 3,357.8 3,451.0 3,300.9 3,108.0 Trade & other rec Trade & other rec Inventories 716.0 594.5 503.5 684.0 646.4 607.6 636.2 665.5 Inventories 450.7 360.4 298.5 465.3 446.4 404.8 437.6 477.1 Other current asset 4,948.5 4,262.9 6,640.1 4,631.9 4,855.2 4,595.7 4,843.9 4,822.2 Other current asset 1,950.3 1,614.4 2,026.4 1,647.8 1,753.1 1,801.7 2,033.7 2,199.7 - Prepaid_Contractcost 987.2 1,037.8 1,070.5 1,098.2 1,106.3 1,165.2 1,318.5 1,389.5 - Prepaid_Contractcost 1,005.8 1,048.7 1,090.8 1,127.8 1,134.5 1,210.6 1,368.1 1,432.1 - Contract assets 313.1 298.4 305.2 306.9 330.9 377.8 430.6 409.8 - Contract assets 289.1 274.7 282.5 285.3 300.2 339.1 384.4 382.2 Non-current assets 19,539.5 19,271.1 18,982.0 20,294.6 20,851.8 21,651.1 21,944.6 22,336.2 Non-current assets 18,327.1 18,111.6 17,832.5 19,149.3 19,530.4 19,907.4 20,115.0 20,620.6 Trade & other rec 689.2 770.1 678.8 810.6 690.4 867.9 943.6 1,238.0 Trade & other rec 624.1 705.1 611.1 766.3 641.7 806.4 888.0 1,186.5 P.P.E 13,161.7 13,000.0 12,855.3 13,068.3 12,811.1 13,192.8 13,349.7 13,785.3 P.P.E 11,008.2 10,777.8 10,645.3 10,864.4 10,656.7 10,914.5 11,092.4 11,448.0 5,688.5 5,501.0 5,448.0 6,415.7 7,350.3 7,590.4 7,651.3 7,312.9 6,694.9 6,628.7 6,576.1 7,518.6 8,232.0 8,186.5 8,134.5 7,986.2 Other current assets Other current assets - Prepaid_Contractcost 343.5 362.6 368.5 371.7 364.4 403.5 460.3 459.8 - Prepaid_Contractcost 331.4 336.9 349.8 360.0 351.4 398.9 457.0 444.2 - Contract assets 74.0 79.3 92.9 91.9 94.1 111.3 126.5 147.3 - Contract assets 64.0 69.3 82.5 81.6 84.0 101.4 112.5 95.8 16,474.1 15,681.3 18,093.3 17,457.6 18,509.4 18,464.8 18,430.1 18,874.3 12,320.3 11,869.2 12,091.3 13,299.2 14,099.7 14,076.5 14,122.0 14,837.2 Liabilities Liabilities Current liabilities 9,453.7 9,117.6 11,185.1 9,387.7 9,926.8 9,908.1 9,973.8 10,074.9 Current liabilities 5,899.2 5,943.6 5,822.2 5,908.5 6,283.8 6,238.7 6,471.1 6,728.1 Trade & other payables 6,974.4 6,199.7 8,700.2 6,948.2 7,264.0 7,980.9 7,709.7 7,597.5 Trade & other payables 4,074.7 3,602.2 3,887.7 4,002.4 4,472.4 5,118.4 5,006.4 5,025.7 1,534.3 1,940.0 1,417.0 1,368.5 1,149.0 583.6 915.7 1,185.7 1,230.1 1,688.7 1,179.3 1,181.4 948.5 380.4 744.7 1,052.5 Short-term borrowings Short-term borrowings 945.1 977.9 1,067.9 1,071.0 1,513.8 1,343.6 1,348.4 1,291.7 594.4 652.8 755.2 724.7 862.9 739.9 720.0 649.9 Others Others 270.8 281.0 289.3 300.7 302.9 304.4 304.1 313.6 274.4 280.0 287.4 301.1 302.1 306.7 304.2 314.5 - Contract liabilities - Contract liabilities Non-current liabilities 7,020.4 6,563.7 6,908.2 8,069.8 8,582.5 8,556.7 8,456.4 8,799.5 Non-current liabilities 6,421.1 5,925.5 6,269.1 7,390.7 7,815.9 7,837.8 7,650.9 8,109.1 Trade & other payables 667.9 661.0 658.2 1,409.3 1,132.7 1,110.0 1,125.6 1,082.2 Trade & other payables 728.4 711.1 706.2 1,460.1 1,524.9 1,476.1 1,454.2 1,371.5 5,155.0 4,664.5 4,953.2 5,279.8 5,641.1 5,673.2 5,492.6 6,113.1 5,007.5 4,515.1 4,815.8 5,132.1 5,502.7 5,549.0 5,371.1 5,975.5 Long-term borrowings Long-term borrowings Others 1,197.5 1,238.2 1,296.8 1,380.7 1,808.7 1,773.5 1,838.2 1,604.1 Others 685.2 699.4 747.1 798.5 788.3 812.6 825.6 762.1 - Contract liabilities 52.1 45.8 42.1 46.8 44.3 42.7 45.0 52.0 - Contract liabilities 47.6 41.7 38.8 43.7 41.4 40.1 42.4 49.1 14,144.0 14,437.0 14,701.5 14,731.3 14,738.5 15,004.6 15,231.1 15,187.0 12,469.8 12,659.4 12,867.6 12,711.7 12,738.0 12,883.3 12,954.3 12,896.7 Equity Equity 10,860.2 11,107.9 11,336.5 11,328.9 11,269.5 11,438.9 11,627.4 11,637.2 10,514.6 10,721.5 10,923.0 10,740.0 10,741.7 10,880.2 10,952.9 10,870.0 Retained earnings Retained earnings 14
K-IFRS / Separate 4-3 Subscribers Wireless 1Q 18 2Q 18 3Q 18 4Q 18 1Q 19 2Q 19 3Q 19 4Q 19 QoQ YoY 1) Subscribers (Unit: 1,000) Total 20,378 20,662 20,920 21,120 21,333 21,549 21,771 21,922 0.7% 3.8% Net additions 363 284 258 200 213 216 222 150 -32.3% -25.0% Gross additions 1,211 1,160 1,200 1,179 1,181 1,133 1,077 1,067 -1.0% -9.5% 2) 848 876 942 978 968 917 855 917 Deactivation 7.2% -6.3% Churn rate 1.4% 1.4% 1.5% 1.6% 1.5% 1.4% 1.3% 1.4% 0.1%p -0.2%p LTE 15,867 16,224 16,612 16,971 17,393 17,383 17,169 17,153 -0.1% 1.1% 5G 419 1,055 1,419 34.5% - LTE+5G Penetration rate 77.9% 78.5% 79.4% 80.4% 81.5% 82.6% 83.7% 84.7% 1.0%p 4.3%p 3) 32,283 32,320 32,028 31,450 31,496 31,745 31,912 31,347 -1.8% -0.3% ARPU (KRW) Note 1) Subscribers: MSIT’s new guidelines for subscriber disclosure (Retroactively applied from 1Q14, MVNO included) Note 2) Deactivation: Mandatory deactivation included Note 3) ARPU = Wireless revenue* / Wireless subscribers** * Wireless revenue(3G, LTE, 5G and IoT included): Revenue of Voice and Data usage (Interconnection/Subscription fee excluded), VAS, Contract/ Bundled Discounts, and etc. included ** Wireless subscribers: Based on MSIT’s guidelines for average billed subscribers in quarter ※ 4Q19 ARPU KRW 32,111 without one-off accounting changes (QoQ +0.6%, YoY +2.1%) Wireline 1Q 18 2Q 18 3Q 18 4Q 18 1Q 19 2Q 19 3Q 19 4Q 19 QoQ YoY Subscribers (Unit: 1,000) Telephony 15,478 15,343 15,163 14,992 14,830 14,554 14,386 14,185 -1.4% -5.4% PSTN 12,080 11,949 11,786 11,637 11,489 11,343 11,192 11,052 -1.2% -5.0% VoIP 3,398 3,394 3,377 3,355 3,340 3,211 3,194 3,133 -1.9% -6.6% Broadband 8,653 8,659 8,698 8,729 8,782 8,849 8,904 8,962 0.7% 2.7% IPTV (OTV+OTS) 7,573 7,672 7,775 7,851 7,966 8,113 8,229 8,351 1.5% 6.4% ※ Number of IPTV subscribers above deviates from MSIT’s released figure below following IPTV law - Number of KT pay TV subscriber is 7,081,177 in 1H 2019 (6 month average) 15K-IFRS / Separate 4-3 Subscribers Wireless 1Q 18 2Q 18 3Q 18 4Q 18 1Q 19 2Q 19 3Q 19 4Q 19 QoQ YoY 1) Subscribers (Unit: 1,000) Total 20,378 20,662 20,920 21,120 21,333 21,549 21,771 21,922 0.7% 3.8% Net additions 363 284 258 200 213 216 222 150 -32.3% -25.0% Gross additions 1,211 1,160 1,200 1,179 1,181 1,133 1,077 1,067 -1.0% -9.5% 2) 848 876 942 978 968 917 855 917 Deactivation 7.2% -6.3% Churn rate 1.4% 1.4% 1.5% 1.6% 1.5% 1.4% 1.3% 1.4% 0.1%p -0.2%p LTE 15,867 16,224 16,612 16,971 17,393 17,383 17,169 17,153 -0.1% 1.1% 5G 419 1,055 1,419 34.5% - LTE+5G Penetration rate 77.9% 78.5% 79.4% 80.4% 81.5% 82.6% 83.7% 84.7% 1.0%p 4.3%p 3) 32,283 32,320 32,028 31,450 31,496 31,745 31,912 31,347 -1.8% -0.3% ARPU (KRW) Note 1) Subscribers: MSIT’s new guidelines for subscriber disclosure (Retroactively applied from 1Q14, MVNO included) Note 2) Deactivation: Mandatory deactivation included Note 3) ARPU = Wireless revenue* / Wireless subscribers** * Wireless revenue(3G, LTE, 5G and IoT included): Revenue of Voice and Data usage (Interconnection/Subscription fee excluded), VAS, Contract/ Bundled Discounts, and etc. included ** Wireless subscribers: Based on MSIT’s guidelines for average billed subscribers in quarter ※ 4Q19 ARPU KRW 32,111 without one-off accounting changes (QoQ +0.6%, YoY +2.1%) Wireline 1Q 18 2Q 18 3Q 18 4Q 18 1Q 19 2Q 19 3Q 19 4Q 19 QoQ YoY Subscribers (Unit: 1,000) Telephony 15,478 15,343 15,163 14,992 14,830 14,554 14,386 14,185 -1.4% -5.4% PSTN 12,080 11,949 11,786 11,637 11,489 11,343 11,192 11,052 -1.2% -5.0% VoIP 3,398 3,394 3,377 3,355 3,340 3,211 3,194 3,133 -1.9% -6.6% Broadband 8,653 8,659 8,698 8,729 8,782 8,849 8,904 8,962 0.7% 2.7% IPTV (OTV+OTS) 7,573 7,672 7,775 7,851 7,966 8,113 8,229 8,351 1.5% 6.4% ※ Number of IPTV subscribers above deviates from MSIT’s released figure below following IPTV law - Number of KT pay TV subscriber is 7,081,177 in 1H 2019 (6 month average) 15