Kt Corporation · KRX:030200
Kt — FY2020 Earnings Presentation
21 slides from Kt's earnings presentation, Feb 9, 2021
Slide 1: KT 2020 Earnings Release
KT 2020 Earnings ReleaseKT 2020 Earnings Release
Slide 2: Disclaimer
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 c
Slide 3: Financial Highlights / Business Overview / Appendix
2 Financial Highlights 3 Business Overview 4 Appendix 32 Financial Highlights 3 Business Overview 4 Appendix 3
Slide 4: 2020 Highlights
1 2020 Highlights Earnings growth with expansion of growth business and profitability Financial improvement in core business (unit: KRW) Service Revenue Service Revenue (Consolidated) 20.8 tr. (YoY +0.4%) (KT separate) 15.1 tr. (YoY +1.0%) Operating Profit Operating Profit 1.18 tr. (YoY +2.1%) 0.88
Slide 5: 2021 Management Plan
2 2021 Management Plan The year of transforming into Digico(Digital Platform Company) from Telco Cash Cow B2B biz Platform biz Enhancing Profitability Growth Acceleration Establishing Growth Basis 1 DX Acceleration based on Restructuring group portfolio High value subs base expansion 2 ABC capabilit
Slide 6: 2021 Guidance
3 2021 Guidance Focusing on service revenue growth via transforming into ‘Digico’ (Unit: KRW tr) (Unit: KRW tr) 25 +α 4% growth 24.3 15.1 23.9 14.9 2019 2020 2019 2020 2021(E) 2021(E) 63 2021 Guidance Focusing on service revenue growth via transforming into ‘Digico’ (Unit: KRW tr) (Unit: KRW tr) 25
Slide 7: Financial Highlights
1 KT Change Story 2 Financial Highlights 3 Business Overview 4 Appendix 71 KT Change Story 2 Financial Highlights 3 Business Overview 4 Appendix 7
Slide 8: Consolidated Income Statement
K-IFRS / Consolidated 1 Income Statement • Service revenue increased YoY, whereas total revenue down -1.7% YoY due to decrease in Handset sales and Finance/Real estate revenues • Total Operating income up +2.1% YoY with efficient cost spending (Unit: KRW bn) 4Q19 3Q20 4Q20 QoQ YoY 2019 2020 YoY Oper
Slide 9: Consolidated Operating Expenses
K-IFRS / Consolidated 2 Operating Expenses (Unit: KRW bn) 4Q19 3Q20 4Q20 QoQ YoY 2019 2020 YoY Operating Expenses 6,038.7 5,708.8 6,040.5 5.8% 0.0% 23,182.5 22,732.6 -1.9% Labor Cost 1,001.8 1,082.3 1,053.8 -2.6% 5.2% 3,951.1 4,123.7 4.4% General Expense 2,571.2 2,386.9 2,435.4 2.0% -5.3% 9,791.1 9,
Slide 10: Consolidated Financial Position
K-IFRS / Consolidated 3 Financial Position (Unit: KRW bn) 4Q 19 3Q 20 4Q 20 QoQ YoY Assets 34,540.1 35,860.5 33,662.3 -6.1% -2.5% Cash & Cash Equivalents 2,305.9 2,990.9 2,634.6 -11.9% 14.3% Liabilities 19,356.6 20,204.0 18,110.9 -10.4% -6.4% Borrowings 7,298.9 7,850.9 7,316.1 -6.8% 0.2% Equity 15,1
Slide 11: Separate CAPEX
K-IFRS / Separate 4 CAPEX • CAPEX total 2.87 trillion won executed in 2020 - Access Network 1,592.6bn, Backbone Network 531.8bn, B2B communications 418.7bn, others 328.9bn (Unit: KRW bn) Access Network Backbone Network 3,711 B2B Others 3,313 3,257 2,872 2,514 2,397 2,359 2,475 2,250 1,870 1,977 2,19
Slide 12: Business Overview
1 KT Change Story 2 Financial Highlights 3 Business Overview 4 Appendix 121 KT Change Story 2 Financial Highlights 3 Business Overview 4 Appendix 12
Slide 13: Separate KT - Wireless
K-IFRS / Separate 1 KT - Wireless ∙ Wireless service revenue up +1.6% YoY with 5G subscribers growth ∙ Total number of 5G subscribers recorded 3.62 million(25% of Handset subscribers) (Unit: KRW bn) 4Q19 3Q20 4Q20 QoQ YoY 2019 2020 YoY Wireless 1,705.4 1,742.1 1,733.4 -0.5% 1.6% 6,847.1 6,933.8 1.3%
Slide 14: Separate KT – Fixed Line/IPTV
K-IFRS / Separate 2 KT – Fixed Line/IPTV ∙ Telephony revenue down -7.3% YoY and Broadband revenue maintained last year’s level despite interconnection rates decrease ∙ IPTV revenue up +7.7% YoY with consistent subs growth and platform revenue growth (Unit: KRW bn) 4Q19 3Q20 4Q20 QoQ YoY 2019 2020 Yo
Slide 15: Separate KT – B2B and others
K-IFRS / Separate 3 KT – B2B and others ∙ B2B revenue up +2.0% YoY with increasing demands in IDC business and Cloud business expansion (Unit: KRW bn) 2019 2020 YoY 4Q19 3Q20 4Q20 QoQ YoY 2,719.1 2,774.0 2.0% B2B 725.9 690.3 707.9 2.5% -2.5% 1,064.3 1,068.7 0.4% Corporate Fixed Line 268.9 266.9 266.
Slide 16: Major subsidiaries
K-IFRS / consolidated(each subsidiary) 4 Major subsidiaries ∙ BC card and KT Estate revenues down -4.2% and -24.9% YoY, respectively, due to COVID-19 causing slump in credit cards and rental business ∙ Contents subsidiaries revenue up +9.6% YoY with volume growth in both music distribution and T-Com
Slide 17: Appendix
1 KT Change Story 2 Financial Highlights 3 Business Overview 4 Appendix 171 KT Change Story 2 Financial Highlights 3 Business Overview 4 Appendix 17
Slide 18: K-IFRS Income Statement
1 K-IFRS Income Statement (Unit: KRW bn) Consolidated 1Q 19 2Q 19 3Q 19 4Q 19 2019 1Q 20 2Q 20 3Q 20 4Q 20 2020 KT Separate 1Q 19 2Q 19 3Q 19 4Q 19 2019 1Q 20 2Q 20 3Q 20 4Q 20 2020 Operating revenue 5,834.4 6,098.5 6,213.7 6,195.5 24,342.0 5,831.7 5,876.5 6,001.2 6,207.3 23,916.7 Operating revenue
Slide 19: K-IFRS Balance Sheet
2 K-IFRS Balance Sheet (Unit: KRW bn) Consolidated 1Q 19 2Q 19 3Q 19 4Q 19 1Q 20 2Q 20 3Q 20 4Q 20 KT Separate 1Q 19 2Q 19 3Q 19 4Q 19 1Q 20 2Q 20 3Q 20 4Q 20 Assets 33,247.8 33,469.4 33,661.3 34,540.1 32,631.0 34,003.4 35,860.5 33,662.3 Assets 26,837.7 26,959.8 27,076.4 28,212.7 27,069.1 27,578.0 2
Slide 20: Separate Subscribers
K-IFRS / Separate 3 Subscribers Wireless 1Q 19 2Q 19 3Q 19 4Q 19 1Q 20 2Q 20 3Q 20 4Q 20 QoQ YoY 1) Subscribers (Unit: Thousands) Total 21,333 21,549 21,771 21,922 21,976 22,133 22,333 22,305 -0.1% 1.7% 213 216 222 150 55 157 200 Net additions -28 N/A N/A 1,181 1,133 1,077 1,067 938 1,030 1,033 Gros
Slide 21: Slide 21