Slide 1: KT IR Presentation
KT IR PRESENTATION Investor Relations｜ 2017. 8.
Slide 2: Disclaimer
Disclaimer This presentation has been prepared by KT Corp. (“the Company”). 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
Slide 3: Contents
Contents 1 Business Overview 2 Financial Highlights 3 Appendix
Slide 4: 2Q17 Highlight
1-1 2Q17 Highlight Achieved operating profit of over KRW 400bn on strong BB/Media growth Affiliates’ solid contribution continued while ‘GiGA Genie’ subs reached 100k BB/media subs & revenue increased on strong competitiveness - GiGA internet subs reached 3.2 million backing 8 consecutive reve
Slide 5: Maintain M.I.T. leadership on GiGA competency
1-2 Maintain M.I.T. leadership on GiGA competency Acceleration of M.I.T. quality growth on GiGA Infra differentiation Continuous MNO net adds and strong Internet/IPTV revenue growth Wireless Revenue Broadband Revenue IPTV Revenue (Unit: KRW billion, KT Separate) (Unit: KRW billion, KT Separate)
Slide 6: Wireless: Subscriber
1-3 Wireless : Subscriber Strong net adds from new segments(2nd Device/IoT), MNO also recorded net adds Quality focused marketing on superior network and new products reflecting consumer usage pattern Wireless Subscriber Trends LTE Subscriber Trends (Unit: thousand) (Unit: thousand) 19,521 18,89
Slide 7: Wireless: ARPU
1-4 Wireless : ARPU Subs mix change on 2nd Device/IoT expansion leading to ARPU decline of YoY 2.1% Up-selling focused marketing by strengthening SPEC of higher-tariff service plans Wireless ARPU Trend Continuous Increase in Data Usage (Unit: KRW) (Unit: GB) 6.5 35,291 35,394 35,062 6.1 34,537 3
Slide 8: Wireless: Market
1-5 Wireless : Market Low churn sustained on market shift toward internal migration after HDRA Less market fluctuation parting from subsidy-driven competition Key Indicators MNP per day Internal Migration Ratio Churn Rate (Unit: 1,000) (Unit: 1,000, monthly avg.) 49% 49% 49% 47% 46% 17.4 39% 2.0
Slide 9: Fixed Line
1-6 Fixed Line Core Internet/IPTV competency offsets fixed line telephony decline Similar trend expected in the profit level on quality growth of Internet/IPTV Trend of major fixed line services Internet+IPTV rev. increase PSTN rev. decline (Unit: KRW billion, KT Separate) 274.5 135.1 144.3 105.
Slide 10: GiGA Internet
1-7 GiGA Internet GiGA accumulates 3.2mn subs, expecting to beat 2017 guidance of 3.5mn Actively leveraging superior GiGA infra and technology GiGA Internet Subscribers GiGA Internet 2.0 Speed Monthly Fee (3yr contract,bundled) (Unit: thousand) (Unit : KRW bn) 100Mbps KRW 20,000 GiGA Internet 1.
Slide 11: Media
1-8 Media Expect profit contribution on improved subs quality and VAS growth Acquired GiGA Genie 100K subs, accelerating evolution of media platform Media Subscriber Trend Media Revenue Trend (Unit: thousand) (Unit: KRW billion, Consolidated) 9,535 9,708 9,026 9,206 9,372 457 411 425 420 424 2,3
Slide 12: Drive platform business on 'Intelligent 5G'
1-9 Drive platform business on ‘Intelligent 5G’ Transforming into next generation’s platform operator focusing on 5 category Target to create revenue of more than 20% by 2020 from selected biz (KT Separate) PRESENT FUTURE IPTV+VR+AI leadership Media 7 million IPTV subscribers with high # of subs
Slide 13: CAPEX & Spectrum
K-IFRS / Separate 1-10 CAPEX & Spectrum Investment conducted for nationwide NB-IoT and newly acquired spectrum CAPEX to be within KRW2.4 trillion of guidance on efficient spending CAPEX Spectrum Access Network Backbone Network B2B 115 Others (Unit: KRW bn) 3,313 Newly 95 20 Acquired on 2,514 May
Slide 14: Financial Highlights: Major Subsidiaries
K-IFRS / Consolidated 1-11 Financial Highlights 2017 subsidiaries’ profit contribution to increase 10% to KRW400 billion level Stable profit contribution backed by strong subsidiaries’ performance Major Subsidiaries Master Card stake disposal of KRW 407bn Delay of Home-shopping commission
Slide 15: 2017 Target
1-12 2017 Target Revenue over KRW 22tn (con.), CAPEX under KRW 2.4tn (separate) Stable profit delivery on strengthened core business competitiveness 2016 2017(E) Revenue(con.) 22.7tn over 22tn Guidance CAPEX(separate) 2.36bn under 2.4tn Wireless Service Rev. + 1.7% 2% + % of LTE 85.0% 87% Fixed
Slide 16: Contents
Contents 1 Business Overview 2 Financial Highlights 3 Appendix
Slide 17: Financial Highlights: Income Statement
K-IFRS / Consolidated 2-1 Financial Highlights Income Statement (Unit: KRW bn) □ Operating Revenue 2Q16 1Q17 2Q17 QoQ YoY KRW 5,843bn, (YoY) +2.9% Operating revenue 5,677.6 5,611.7 5,842.5 4.1% 2.9% Service Revenue Service revenue 5,041.2 4,948.5 5,069.1 2.4% 0.6% KRW 5,069bn, (YoY) +0.6% Merchand
Slide 18: Financial Highlights: Operating Expenses
K-IFRS / Consolidated 2-2 Financial Highlights Operating Expenses (Unit: KRW bn) □ Operating Expenses 2Q16 1Q17 2Q17 QoQ YoY KRW 5,395bn, (YoY) +2.8% Operating Expenses 5,250.7 5,194.7 5,395.2 3.9% 2.8% Labor Cost Labor cost 856.5 869.8 872.1 0.3% 1.8% KRW 872bn, (YoY) +1.8% General expenses 2,439
Slide 19: Financial Highlights: Financial Position
K-IFRS / Consolidated 2-3 Financial Highlights Financial Position (Unti: KRW bn) □ Debt Position 2Q16 1Q17 2Q17 QoQ YoY Borrowings: KRW 6,525bn Assets 28,624.2 30,102.6 27,825.5 -7.6% -2.8% Net Debt: KRW 4,869bn Cash and cash equivalents 3,043.2 2,002.1 1,656.5 -17.3% -45.6% Debt 16,194.2 17,319
Slide 20: Contents
Contents 1 Business Overview 2 Financial Highlights 3 Appendix
Slide 21: K-IFRS Quarterly Income Statements
3-1 K-IFRS Quarterly Income Statements (Unit: KRW bn) Consolidated I/S 2Q 16 3Q 16 4Q 16 1Q 17 2Q 17 KT Separate I/S 2Q 16 3Q 16 4Q 16 1Q 17 2Q 17 Operating revenue 5,677.6 5,529.9 6,021.1 5,611.7 5,842.5 Operating revenue 4,203.5 4,101.6 4,522.9 4,161.4 4,292.6 Service Revenue 5,041.2 5,040.0 5,026
Slide 22: K-IFRS Statement of Financial Position
3-2 K-IFRS Statement of Financial Position (Unit: KRW bn) Consolidated 2Q 16 3Q 16 4Q 16 1Q 17 2Q 17 KT Separate 2Q 16 3Q 16 4Q 16 1Q 17 2Q 17 Asset 28,624.2 30,135.8 30,587.7 30,102.6 27,825.5 Asset 23,590.8 24,287.4 24,700.3 23,677.2 22,881.3 Current assets 8,838.8 10,105.2 9,643.3 9,858.1 7,592.8
Slide 23: Subscribers (KT Separate)
3-3 Subscribers (KT Separate) Wireless 2Q 16 3Q 16 4Q 16 1Q 17 2Q 17 QoQ YoY Subscribers (Unit: 1,000)1) Total (LTE+WCDMA) 18,378 18,678 18,892 19,234 19,521 1.5% 6.2% Net additions 198 300 214 342 287 -16.1% 45.0% Gross additions 1,134 1,241 1,244 1,242 1,224 -1.4% 8.0% 2) Deactivation 936 941 1,03
Slide 24: Thank you
Thank you