Kt Corporation · KRX:030200
Kt — Investor Presentation (February 2005)
16 slides from Kt's investor presentation, February 2005
Slide 1: KT Investor Presentation
KT Investor Presentation February 2005
Slide 2: Disclaimer
Disclaimer This presentation has been prepared by KT Corp. 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 representation or
Slide 3: Table of Contents
Table of Contents I. Major achievements since privatization II. Vision 2010 III. Management focus in 2005 IV. Appendix 2
Slide 4: I. Major achievements since privatization
I. Major achievements since privatization “ Successful response “Strengthened efficiency” “ Established to competition ” Six Sigma Restructuring solid shareholder Management Innovation program return policy” 314 11.85 261 11.52 3,000 44,094 2.13 37,797 1.46 720 Revenue Operating profit Employee numb
Slide 5: II. Vision 2010
II. Vision 2010 WiBro Home N Ubiquitous Fixed-Wireless Tele-Broadcasting Integration Convergence Realize 2010 Growth Voice-Data Integration IT service Contents Build Media Stagnant Growth 2006 top-line Foundation 2004 2005 e t w o rk ” OP Margin 20% , All IP N , Bc N Labor / Sales 18% T T H “F CAPEX
Slide 6: III. Management focus in 2005
III. Management focus in 2005 1. Increase subscriber base for WiBro service 2. Minimize fixed-line revenue decline 3. Invest for future growth 4. 2005 Key targets 5. Solid shareholder return “ Establishing a solid base for future growth ” 5
Slide 7: III-1. Increase subscriber base for WiBro service
III-1. Increase subscriber base for WiBro service Broadband 2005 WiBro 1st place winner in beauty contest Subscribers : 6.07m → 6.60m - Proven best qualified operator Market share : 51% → 53% - Entitled to choose most preferred bandwidth Launching FTTH in 2005 - Migrate 60% of DSL subs to FTTH by 20
Slide 8: III-2. Minimize fixed-line revenue decline
III-2. Minimize fixed-line revenue decline Adopt mobile VAS to fixed voice service (KRW Trillion) Mobile handset functions added to cordless phone 11.85 - Launched “Ann” in Nov. 2004 / 121,695 subs (Dec.2004) Customized ring-back tone service 38% - Launched “Ringo” in Apr. 2004 / 2.04 million subs (
Slide 9: III-3. Invest for future growth
III-3. Invest for future growth 2004 2005(E) 8.7% 10.3% 50.3% 34.8% 42.9% 37.4% 13.6% 2.0% CAPEX CAPEX KRW 1.82 trn Below KRW 2.2 trn Business Supportive (R&D,etc) Infrastructure New Growth business : WiBro, Home N, IP media, BcN, FTTH, etc 8
Slide 10: III-4. 2005 Key targets
III-4. 2005 Key targets (KRW Trillion) 2004 2005 (E) Revenue 11.85 11.90 Operating profit 2.13 Over 2.1 EBITDA 4.41 Over 4.4 CAPEX 1.82 Below 2.2 9
Slide 11: III-5. Sustainable shareholder return policy
III-5. Sustainable shareholder return policy “ Maintain same level of returns as 2004 ” “ Interim dividend adopted ” 634 630 625 Interim dividend 212 or Share buyback & cancellation 412 422 422 213 2003 2004 2005 (E) Regular Dividend Buyback & Cancellation Interim Dividend 10
Slide 12: Appendix
Appendix 1. Main agenda for AGM 2. WiBro 3. Advantage of FTTH 4. KTF : Growth within Growth 11
Slide 13: Appendix 1: Main agenda for AGM
Appendix 1: Main agenda for AGM Agenda 1 : Approval of Balance Sheet, Income Statement & Statement of Appropriation of Retained Earnings of 2004 Agenda 2 : Amendment of Articles of Incorporation - Introduction of the written voting system : Exercise voting rights without attending the AGM Agenda 3 :
Slide 14: Appendix: WiBro
Appendix 2 : WiBro Service Positioning Why KT? Largest subscriber base Affordable price - 6M broadband &11.7M wireless subscribers Mobility 3G Voice/Video Cost advantage Telemetics conference - Utilize KT’s nationwide & KTF’s wireless IP network to minimize CAPEX LBS VoIP media Total market expected
Slide 15: Appendix: Advantage of FTTH
Appendix 3 : Advantage of FTTH +43% +40% -18% VAS 42,000 HD IP media 9.8 10,300 29,300 Video/Audio/Education 7.0 8,500 on demand Home surveillance Appliance control Remote Health care Broadband Subscribers OPEX / line ARPU (million subscribers) (KRW:won) (KRW:WON) FTTH unadopted FTTH adopted 14
Slide 16: Appendix: KTF – Growth within growth
Appendix 4 : KTF – Growth within growth 2004 2005 (E) Changes Management focus Fully leverage MNP Focus on profit - opportunity improvement Subscribers 11.7M 12.3M 0.6M KT – Resale subs. 2.2M 2.5M 0.3M Service revenue 4.59 4.84 +5% (KRW trillion) OP Margin 11.4% 14.4% 3% p EBITDA Margin 35.2% 39%~41