6-K 1 d862790d6k.htm FORM 6-K Form 6-K

 

 

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

 

 

Form 6-K

 

 

REPORT OF FOREIGN PRIVATE ISSUER

PURSUANT TO RULE 13a-16 OR 15d-16 OF

THE SECURITIES EXCHANGE ACT OF 1934

For the month of January 2015

Commission File Number 1-14926

 

 

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 Form 20-F or Form 40-F:

Form 20-F  x            Form 40-F  ¨

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1):  ¨

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-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 Rule 12g3-2(b) under the Securities Exchange Act of 1934.

Yes  ¨            No   x

If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(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: Jan 30, 2015
KT Corporation
By:  

/s/ Youngwoo Kim

Name:   Youngwoo Kim
Title:   Vice President
By:  

/s/ Jungsup Jung

Name:   Jungsup Jung
Title:   Director


LOGO

KT 2014
Earnings Release
Global No.1 KT
Investor Relations | 2015. 1. 30 kt


LOGO

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 representation or warranty, expressed or implied, is made and no reliance should be placed on the accuracy, actuality, fairness, or completeness of the information presented.
Please be informed that items included in our operating income have been prepared in accordance with K-IFRS 1001 released on October 17, 2012, which was revised to coincide with the Korean Accounting Standards for Non-Public Entities (“KAS-NPEs”). As such, our disposal gains from real estates and others have been excluded from our operating income.
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 should 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, 3564, 5529, 5343, 5344
Fax : 82-2-3495-5914
1


LOGO

Contents
1 Financial Highlights
2 Business Overview
3 Q&A
4 Appendix
2


LOGO

K-IFRS / Consolidated
1-1 Financial Highlights
Income Statement
Operating revenue 23,421.5bn
(YoY) -1.6%
Service revenue 19,961bn (YoY) 0.6%
Merchandise revenue 3,460.6bn (YoY) -12.8%
Operating loss 291.8bn
Early Retirement Program expenses included
Net loss 965.5bn
EBITDA 3,483.5bn
(Unit: KRW bn)
2014 2013 YoY 4Q14 3Q14 4Q13 QoQ YoY
Operating revenue 23,421.5 23,810.6 -1.6% 5,724.4 5,955.6 6,214.5 -3.9% -7.9%
Service revenue 19,961.0 19,844.1 0.6% 4,983.7 5,130.5 5,029.8 -2.9% -0.9%
Merchandise revenue 3,460.6 3,966.5 -12.8% 740.7 825.0 1,184.7 -10.2% -37.5%
Operating expense 23,713.4 22,971.3 3.2% 5,690.3 5,620.5 6,398.5 1.2% -11.1%
Operating income -291.8 839.4 TR 34.1 335.1 -184.0 -89.8% TG
Margin (%) -1.2% 3.5% -4.8%p 0.6% 5.6% -3.0% -5.0%p 3.6%p
Non-operating income (loss) -945.2 -844.6 RR -342.4 -245.3 -514.8 39.6% RR
Income -1,237.0 -5.2 RR -308.3 89.8 -698.8 TR RR
Net income -965.5 -60.2 RR -241.4 74.0 -542.5 TR RR
Margin (%) -4.1% -0.3% -3.9%p -4.2% 1.2% -8.7% -5.5%p 4.5%p
EBITDA 3,483.5 4,405.5 -20.9% 994.3 1,280.3 737.0 -22.3% 34.9%
Margin (%) 14.9% 18.5% -19.6%p 17.4% 21.5% 11.9% -4.1%p 5.5%p
3


LOGO

K-IFRS / Consolidated
1-2 Financial Highlights
Major Subsidiaries
(Unit: KRW bn)
Operating Revenue Operating Income
3,294.3 171.2
3,128.9
3,090.4 154.9
143.1
Consolidated from 4Q11
(KT’s share : 69.5%) 2012 2013 2014 2012 2013 2014
653.0 99.5
574.8
627.4 79.2 skyLife
65.8
Consolidated from 1Q11
(KT’s share : 49.9%) 2012 2013 2014 2012 2013 2014
1,070.0 110.2
Kt rental
885.3 98.1
716.2 84.1
Consolidated from 3Q12
(KT’s share : 58.0%) 2012 2013 2014 2012 2013 2014
Credit and check card usage increase led to revenue and operating income improvement
- Revenue : +6.6% YoY
- Operating income : +10.5% YoY
Revenue rose due to subscriber base expansion
- Revenue : +4.1% YoY
One-off expense led to decrease in operating income
- Operating income : -20.4% YoY
Revenue and operating income increase due to auto rental market growth
- Revenue : +20.9% YoY
- Operating income : +12.3% YoY
Subsidiaries’ financials are consolidated figures
4


LOGO

K-IFRS / Consolidated
1-3 Financial Highlights
Financial Position
Debt Ratio
Debt to Equity : 186.5% Net Debt to Equity : 92.3%
Debt Position
Borrowings : 12,774.5bn Net Debt : 10,885.8bn
ERP led to increase in Borrowings 11.2% YoY
(Unit: KRW bn)
4Q14 4Q13 YoY 4Q14 3Q14 QoQ
Assets 33,778.3 34,846.5 -3.1% 33,778.3 34,118.2 -1.0%
Cash and cash 1,888.7 2,070.9 -8.8% 1,888.7 2,041.3 -7.5%
equivalents
Debt 21,987.7 21,981.6 0.0% 21,987.7 22,192.2 -0.9%
Borrowings 12,774.5 11,483.9 11.2% 12,774.5 12,926.7 -1.2%
Equity 11,790.7 12,864.9 -8.4% 11,790.7 11,926.1 -1.1%
Capital Stock 1,564.5 1,564.5 0.0% 1,564.5 1,564.5 0.0%
Net Debt 10,885.8 9,413.0 15.6% 10,885.8 10,885.4 0.0%
Debt/Equity 186.5% 170.9% 15.6%p 186.5% 186.1% 0.4%p
Net Debt/Equity 92.3% 73.2% 19.2%p 92.3% 91.3% 1.1%p
161.4% 170.9% 172.3% 188.3% 186.1% 186.5%
Debt/Equity
71.0% 73.2% 79.8% 91.3% 91.3% 92.3%
Net Debt/Equity
2012 2013 1Q 14 2Q 14 3Q 14 4Q 14
5


LOGO

K-IFRS / KT Separate
1-4 Financial Highlights
CAPEX
Total CAPEX
FY2014: 2,514.1bn
Recorded run rate of 93.1% compared to FY2014 guidance of KRW 2.7tn
Wireless CAPEX
FY2014 : 900.5bn
Wireline CAPEX
FY2014 : 1,283.2bn
(Unit: KRW bn)
3,710.6
3,318.5 3,312.5
2,105.2 1,293.8 2,514.1
1,607.7
Wireless 900.5
Wireline
1,282.5
Others
1,273.3 1,106.2 1,283.2
736.2
437.5 499.2 330.4
2011 2012 2013 2014
6


LOGO

1 Financial Highlights
2 Business Overview
3 Q&A
4 Appendix
7


LOGO

K-IFRS / Consolidated
2-1 Business Overview
Wireless
Wireless service revenue recorded 7,314.8bn, increased by 4.8% YoY
Service revenue rose 6.4% YoY due to wireless ARPU growth through LTE subscriber expansion
Interconnection revenue decreased due to interconnection fee rate adjustment in
4Q
Continuous subscriber expansion and ARPU growth
Subscribers recorded 17.3m with net additions of 870K during 2014
LTE subscribers stood at 10.8m as of 4Q14, representing 62.4% of total subscribers (67.2% out of MNO)
Wireless ARPU recorded at KRW 35,283, increase 1.3% QoQ, 9.7% YoY, excluding one-off contents transaction revenue
(Unit: KRW bn)
2014 2013 YoY 4Q14 3Q14 4Q13 QoQ YoY
Service 6,309.8 5,932.4 6.4% 1,655.7 1,601.2 1,480.6 3.4% 11.8%
Interconnection 560.0 584.8 -4.2% 63.2 175.8 156.7 -64.1% -59.7%
Others 445.0 459.2 -3.1% 101.2 135.6 116.7 -25.4% -13.3%
Wireless 7,314.8 6,976.5 4.8% 1,820.0 1,912.7 1,753.9 -4.8% 3.8%
<Mobile Subscribers> (Unit: 1,000 / %)
34.7% 33.3% 32.3% 31.4% 30.6% 29.4% 28.7% 28.3%
20.7% 16.9% 14.6% 11.7% 9.3% 29.9% 25.9% 34.5%
47.9% 52.4% 56.1% 59.6% 62.4% 30.8% 36.8% 41.8%
1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14
LTE Smartphone 3G Smartphone 3G Feature Phone 8


LOGO

K-IFRS / Consolidated 2-2 Business Overview Wireline
Wireline revenue declined by 7.2% YoY
Telephony
Telephony revenue fell by 12.5% YoY, mainly due to line loss and MOU decline
Broadband
Despite subscriber net gains of 62K, broadband revenue fell by 0.4% YoY, as a result of increase in bundling discounts
Broadband Bundled ratio stood at 74.2% (Unit: KRW bn) 2014 2013 YoY 4Q14 3Q14 4Q13 QoQ YoY
Telephony 2,606.5 2,979.4 -12.5% 620.0 641.3 715.5 -3.3% -13.4%
Broadband 1,762.2 1,770.1 -0.4% 436.2 440.1 448.5 -0.9% -2.7%
Line lease 1,169.6 1,216.0 -3.8% 282.6 290.0 309.4 -2.5% -8.7%
Wireline 5,538.3 5,965.4 -7.2% 1,338.8 1,371 .41,473.4 -2.4% -9.1%
<Wireline Subscribers> (Unit: 1,000 / %)
8,050 8,038 8,041 8,067 8,037 8,039 8,107 8,129 18,496 18,323 18,173 18,018 17,789 17,615 17,469 17,259 71.4%
72.1% 72.5% 73.0% 73.4% 73.6% 74.2% 66.5%
1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14
Broadband Telephony BB Bundled ratio
9


LOGO

K-IFRS / Consolidated
2-3 Business Overview
Media / Contents
Media/Contents revenue grew 11.3% YoY
Media revenue increased 11.4% YoY due to IPTV subscriber expansion
IPTV media subscribers recorded 5.8m with net gains of 89K
Contents revenue increased by 11.2% YoY
KT music : Contents services revenue increased
KTH : Contents distribution revenue increased
(Unit: KRW bn)
2014 2013 YoY 4Q14 3Q14 4Q13 QoQ YoY
Media 1,330.6 1,194.7 11.4% 343.5 339.7 319.3 1.1% 7.6%
Contents 177.6 159.8 11.2% 17.7 56.3 35.2 -68.5% -49.6%
Media/ Contents 1,508.2 1,354.5 11.3% 361.2 396.1 354.5 -8.8% 1.9%
<Media Subscribers> (Unit: 1,000)
4,228 4,477 4,713 4,968 5,158 5,366 5,635 5,859
2,327 2,450 2,581 2,742 2,891 3,067 3,301 3,527
1,901 2,027 2,132 2,226 2,267 2,298 2,334 2,332
1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14
OTV OTS
10


LOGO

K-IFRS / Consolidated
2-4 Business Overview
Finance / Rental
Finance/Rental revenue
Finance revenue increased by 4.5% YoY, recording 3,400.7bn
Rental revenue increased by 26.9% YoY, recording 768.9bn
Other Service revenue
IT/Solution and Real estate sales decline led Other Service revenue to fall 15.3% YoY
Others
Merchandise
Due to changes in accounting policy regarding subsidy, Merchandise revenue declined by 12.8% YoY
(Unit: KRW bn)
2014 2013 YoY 4Q14 3Q14 4Q13 QoQ YoY
Finance/ Rental 4,169.7 3,859.9 8.0% 1,092.4 1,072.9 1,001.0 1.8% 9.1%
Finance 3,400.7 3,254.1 4.5% 883.6 867.1 834.1 1.9% 5.9%
Rental 768.9 605.8 26.9% 208.8 205.8 166.8 1.5% 25.2%
Other Service 1,430.0 1,687.8 -15.3% 371.3 377.5 447.0 -1.7% -16.9%
IT/Solution 629.8 758.8 -17.0% 168.1 173.6 255.8 -3.1% -34.3%
Real estate 210.8 408.6 -48.4% 39.9 62.3 61.1 -36.0% -34.8%
Other Subsidiaries 589.4 520.4 13.3% 163.2 141.7 130.0 15.2% 25.5%
(Unit: KRW bn)
2014 2013 YoY 4Q14 3Q14 4Q13 QoQ YoY
Merchandise 3,460.6 3,966.5 -12.8% 740.7 825.0 1,184.7 -10.2% -37.5%
11


LOGO

K-IFRS / Consolidated
2-5 Business Overview
Operating Expenses
Operating expenses was recorded at 23,713.4bn, representing increase of 3.2% YoY
Labor cost increased by 21.6% YoY mainly due to Early Retirement Program
Cost of service provided decreased by 15.9% YoY, due to declines in interconnection fee
Despite drop in the handset sales volumes, marketing cost rose both QoQ and YoY, mainly due to enhanced customer benefits and increased external sales of wireline services
(Unit: KRW bn)
2014 2013 YoY 4Q14 3Q14 4Q13 QoQ YoY
Labor cost 4,000.0 3,288.9 21.6% 807.3 635.8 858.3 27.0% -6.0%
General Expenses 10,714.7 10,162.1 5.4% 2,856.2 2,704.6 2,730.7 5.6% 4.6%
Cost of service provided 2,706.3 3,217.8 -15.9% 519.4 799.6 948.2 -35.0% -45.2%
Selling expenses 2,791.5 2,515.9 11.0% 606.0 740.4 705.4 -18.2% -14.1%
Cost of merchandise 3,500.9 3,786.5 -7.5% 901.5 740.0 1,155.9 21.8% -22.0%
Total 23,713.4 22,971.3 3.2% 5,690.3 5,620.5 6,398.5 1.2% -11.1%
Marketing Cost
(Unit: KRW bn)
(KT Separate, Profit from handset sales adjusted/Selling exp +
Advertising expenses)
2014 2013 YoY 4Q14 3Q14 4Q13 QoQ YoY
Marketing 3,152.8 2,681.1 17.6% 812.7 741.6 755.7 9.6% 7.5%
Cost
12


LOGO

Q & A
1 Financial Highlights
2 Business Overview
3 Q&A
4 Appendix
13


LOGO

1 Financial Highlights
2 Business Overview
3 Q&A
4 Appendix
14


LOGO

4-1 K-IFRS Quarterly Income Statements (Unit: KRW bn)
Consolidated I/S 4Q13 1Q14 2Q14 3Q14 4Q14 Operating revenue 6,214.5 5,846.1 5,895.5 5,955.6 5,724.4
Service Revenue 5,029.8 4,858.7 4,988.0 5,130.5 4,983.7 Wireless 1,753.9 1,783.4 1,798.8 1,912.7 1,820.0
Fixed line 1,473.4 1,420.1 1,408.0 1,371.4 1,338.8 Media/Contents 354.5 369.6 381.3 396.1 361.2
Finance/Rental 1,001.0 986.5 1,017.9 1,072.9 1,092.4 Other service 447.0 299.2 382.0 377.5 371.3
Merchandise rev. 1,184.7 987.4 907.5 825.0 740.7 Operating expense 6,398.5 5,694.0 6,708.5 5,620.5 5,690.3
Service expense 5,242.6 4,761.0 5,782.2 4,880.4 4,788.9 Labor expense 858.3 807.6 1,749.4 635.8 807.3
General expense 2,730.7 2,555.0 2,598.9 2,704.6 2,856.2 Depreciation 921.0 931.8 938.1 945.2 960.2
Commissions 364.6 329.3 354.6 360.6 347.1 Advertising 46.3 28.2 33.9 44.3 53.3
Financial biz exp 707.0 683.5 694.8 723.1 782.1 Other general exp 691.9 582.2 577.4 631.4 713.5
Cost of svc provided 948.2 656.9 730.4 799.6 519.4 Cost of service 608.6 376.9 450.2 497.3 342.8
Interconnection fees 264.4 216.3 223.2 251.9 105.9 Other cost of service 75.2 63.6 57.0 50.4 70.7
Selling expense 705.4 741.6 703.6 740.4 606.0 Sales expense 649.4 703.6 669.1 697.2 560.9
Bad debt expense 55.9 38.0 34.5 43.2 45.1 Cost of merch sold 1,155.9 933.0 926.3 740.0 901.5
Operating income -184.0 152.0 -813.0 335.1 34.1 EBITDA 737.0 1,083.9 125.1 1,280.3 994.3
N-OP income (loss) -514.8 -177.9 -179.5 -245.3 -342.4 N-operating income 221.2 111.8 159.9 10.0 231.3
N-operating expense 739.3 294.8 338.8 262.7 580.0 Equity Method (G/L) 3.3 5.2 -0.6 7.4 6.3
Income bf taxes -698.8 -25.9 -992.6 89.8 -308.3 Income tax -156.3 15.0 -235.4 15.8 -66.9
Income from con op -542.5 -40.9 -757.2 74.0 -241.4 Income from discon. Op 0.0 0.0 0.0 0.0 0.0
Net income -542.5 -40.9 -757.2 74.0 -241.4 NI contribution to KT -558.5 -72.0 -786.9 48.8 -244.3
KT Separate I/S 4Q13 1Q14 2Q14 3Q14 4Q14 Operating revenue 4,636.1 4,460.9 4,442.5 4,372.4 4,160.1
Service Revenue 3,549.2 3,485.6 3,558.3 3,637.6 3,520.6 Wireless 1,734.9 1,764.3 1,780.2 1,895.1 1,802.4
Fixed line 1,447.8 1,403.8 1,388.9 1,354.6 1,330.4 Media/Contents 160.3 158.6 162.4 170.3 179.8
Finance/Rental Other service 206.2 158.9 226.8 217.7 208.0
Merchandise rev. 1,086.9 975.2 884.2 734.8 639.5 Operating expense 4,902.4 4,438.4 5,399.0 4,174.3 4,143.6
Service expense 3,745.0 3,495.1 4,488.3 3,497.1 3,324.9 Labor expense 653.8 631.1 1,565.8 460.3 467.7
General expense 1,789.9 1,588.2 1,635.5 1,708.5 1,818.1 Depreciation 751.2 758.0 750.8 758.1 756.5
Commissions 404.7 328.4 360.1 375.8 406.4 Advertising 48.1 28.8 35.8 44.8 53.6
Other general exp 585.9 473.0 488.7 529.8 601.5 Cost of svc provided 583.6 483.7 515.4 561.0 446.9
Cost of service 243.0 204.3 235.7 259.0 271.0 Interconnection fees 264.3 215.7 222.2 251.1 104.8
Other cost of service 76.3 63.8 57.4 50.9 71.0 Selling expense 717.7 792.0 771.7 767.4 592.3
Sales expense 692.8 764.5 747.7 737.9 571.7 Bad debt expense 24.9 27.5 24.0 29.5 20.5
Cost of merch sold 1,157.5 943.4 910.6 677.2 818.7 Operating income -266.3 22.4 -956.5 198.1 16.5
EBITDA 484.9 780.4 -205.7 956.2 773.0 N-OP income (loss) -514.6 -28.3 -170.2 -218.5 -337.6
N-operating income 184.3 221.2 146.9 10.3 203.7 N-operating expense 698.9 249.5 317.1 228.8 541.3
Income bf taxes -780.9 -5.9 -1,126.7 -20.4 -321.1 Income tax -173.8 -1.5 -257.0 -17.0 -56.8
Net income -607.1 -4.4 -869.7 -3.4 -264.3 15


LOGO

4-2 K-IFRS Yearly Income Statements
(Unit: KRW bn) Consolidated I/S 2012 2013 2014 YoY
Operating revenue 23,856.4 23,810.6 23,421.5 -1.6% Service Revenue 19,255.5 19,844.1 19,961.0 0.6%
Wireless 6,913.4 6,976.5 7,314.8 4.8% Fixed line 6,392.3 5,965.4 5,538.3 -7.2%
Media/Contents 1,067.9 1,354.5 1,508.2 11.3% Finance/Rental 3,574.3 3,859.9 4,169.7 8.0%
Other service 1,307.6 1,687.8 1,430.0 -15.3% Merchandise rev. 4,600.9 3,966.5 3,460.6 -12.8%
Operating expense 22,647.1 22,971.3 23,713.4 3.2% Service expense 18,158.2 19,184.8 20,212.5 5.4%
Labor expense 3,075.8 3,288.9 4,000.0 21.6% General expense 10,096.9 10,162.1 10,714.7 5.4%
Depreciation 3,274.1 3,566.2 3,775.4 5.9% Commissions 1,417.7 1,260.1 1,391.7 10.4%
Advertising 150.4 161.0 159.6 -0.8% Financial biz exp 2,771.7 2,703.2 2,883.5 6.7%
Other general exp 2,483.0 2,471.6 2,504.5 1.3% Cost of svc provided 2,613.0 3,217.8 2,706.3 -15.9%
Cost of service 1,368.5 1,934.9 1,667.3 -13.8% Interconnection fees 901.3 885.5 797.3 -10.0%
Other cost of service 343.2 397.5 241.7 -39.2% Selling expense 2,372.5 2,515.9 2,791.5 11.0%
Sales expense 2,229.5 2,315.3 2,630.7 13.6% Bad debt expense 143.0 200.5 160.8 -19.8%
Cost of merch sold 4,489.0 3,786.5 3,500.9 -7.5% Operating income 1,209.2 839.4 -291.8 TR
EBITDA 4,483.3 4,405.5 3,483.5 -20.9% N-OP income (loss) 205.6 -844.6 -945.2 RR
N-operating income 1,286.1 608.6 513.0 -15.7% N-operating expense 1,098.5 1,459.8 1,476.4 1.1%
Equity Method (G/L) 18.1 6.6 18.2 175.7% Income bf taxes 1,414.8 -5.2 -1,237.0 RR
Income tax 277.9 55.0 -271.5 - Income from con op 1,137.0 -60.2 -965.5 RR
Income from discon. Op -31.5 0.0 0.0 - Net income 1,105.4 -60.2 -965.5 RR
NI contribution to KT 1,046.1 -162.4 -1,054.4 RR KT Separate I/S 2012 2013 2014 YoY
Operating revenue 18,863.2 17,937.1 17,435.8 -2.8% Service Revenue 14,462.7 14,259.4 14,202.1 -0.4%
Wireless 6,816.0 6,892.9 7,242.1 5.1% Fixed line 6,442.5 5,880.7 5,477.8 -6.9%
Media/Contents 465.8 569.5 671.0 17.8% Finance/Rental
Other service 738.3 916.2 811.3 -11.5% Merchandise rev. 4,400.5 3,677.7 3,233.7 -12.1%
Operating expense 17,802.4 17,627.1 18,155.3 3.0% Service expense 13,444.2 13,887.2 14,805.4 6.6%
Labor expense 2,500.7 2,557.0 3,124.9 22.2% General expense 6,434.7 6,543.5 6,750.2 3.2%
Depreciation 2,925.6 2,931.6 3,023.4 3.1% Commissions 1,431.1 1,403.6 1,470.8 4.8%
Advertising 136.7 161.7 163.0 0.8% Other general exp
Cost of svc provided 1,941.4 2,046.6 2,093.0 2.3% Cost of service 1,987.4 2,131.6 2,007.0 -5.8%
Interconnection fees 743.7 846.1 970.0 14.7% Other cost of service 898.8 885.8 793.8 -10.4%
Selling expense 344.9 399.8 243.1 -39.2% Sales expense 2,521.4 2,655.1 2,923.4 10.1%
Bad debt expense 2,430.2 2,513.3 2,821.8 12.3% Cost of merch sold 91.1 141.8 101.6 -28.4%
4,358.2 3,739.9 3,349.9 -10.4% Operating income 1,060.8 310.0 -719.5 TR
EBITDA 3,986.5 3,241.6 2,304.0 -28.9% N-OP income (loss) 88.9 -834.7 -754.7 RR
N-operating income 1,116.2 566.3 582.0 2.8% N-operating expense 1,027.3 1,400.9 1,336.7 -4.6%
Income bf taxes 1,149.8 -524.7 -1,474.1 RR Income tax 440.8 -132.4 -332.3 -
Net income 708.9 -392.3 -1,141.9 RR 16


LOGO

4-3 K-IFRS Statement of Financial Position
(Unit: KRW bn)
Consolidated 4Q13 1Q14 2Q 14 3Q 14 4Q14
Asset 34,846.5 34,317.5 34,116.4 34,118.2 33,778.3
Current assets 9,968.4 10,009.0 9,556.2 9,678.9 8,747.2
Cash & cash equivalents 2,070.9 1,694.8 2,315.8 2,041.3 1,888.7
Trade & other rec 3,739.1 3,402.7 3,584.3 3,600.8 3,692.8
Inventories 614.1 637.1 499.6 400.3 386.8
Other current assets 3,544.4 4,274.5 3,156.5 3,636.5 2,778.9
Non-current assets 24,878.1 24,308.5 24,560.2 24,439.3 25,031.2
Trade & other rec 813.5 639.1 753.1 731.5 848.9
P.P.E 16,387.0 16,314.2 16,368.6 16,161.9 16,486.4
Other non-cur assets 7,677.6 7,355.2 7,438.5 7,545.9 7,695.8
Liabilities 21,981.6 21,713.8 22,284.8 22,192.2 21,987.7
Current liabilities 11,187.7 11,227.9 10,706.1 10,338.2 10,001.5
Trade & other payables 7,413.8 7,079.2 6,494.5 6,568.7 6,416.0
Short-term borrowings 3,020.7 3,408.9 3,595.8 3,151.7 2,962.4
Other current liabilities 753.2 739.8 615.7 617.9 623.1
Non-current liabilities 10,793.9 10,485.9 11,578.7 11,853.9 11,986.2
Trade & other payables 1,058.9 908.3 919.9 954.8 909.2
Long-term borrowings 8,463.2 8,338.5 9,517.3 9,775.0 9,853.0
Other non-cur liabilities 1,271.8 1,239.2 1,141.5 1,124.0 1,224.0
Equity 12,864.9 12,603.7 11,831.6 11,926.1 11,790.7
Net Debt 9,413.0 10,052.6 10,797.3 10,885.4 10,885.8
KT Separate 4Q13 1Q14 2Q14 3Q14 4Q14
Asset 25,693.9 25,338.5 25,462.5 25,038.9 24,920.3
Current assets 4,711.8 4,476.2 4,403.5 4,228.1 3,836.5
Cash & cash equivalents 1,023.9 440.6 934.6 506.4 469.3
Trade & other rec 3,007.5 2,894.0 2,917.6 2,849.1 2,977.6
Inventories 478.4 480.2 311.1 270.7 201.9
Other current assets 202.0 661.3 240.2 601.8 187.8
Non-current assets 20,982.1 20,862.3 21,059.1 20,810.8 21,083.8
Trade & other rec 674.8 507.9 624.1 621.2 722.7
P.P.E 13,087.6 12,651.1 12,512.9 12,193.0 12,418.7
Other non-cur assets 7,219.7 7,703.3 7,922.1 7,996.6 7,942.4
Liabilities 14,649.8 14,372.0 15,378.5 14,970.2 15,314.4
Current liabilities 7,041.0 6,830.8 6,757.8 6,133.9 6,330.7
Trade & other payables 5,015.4 4,080.1 4,041.5 3,946.3 4,329.0
Short-term borrowings 1,582.8 2,286.9 2,358.3 1,835.0 1,632.0
Other current liabilities 442.9 463.8 358.0 352.6 369.7
Non-current liabilities 7,608.8 7,541.2 8,620.8 8,836.3 8,983.7
Trade & other payables 1,048.9 860.8 845.1 827.6 783.9
Long-term borrowings 5,703.1 5,829.9 7,022.1 7,277.5 7,363.5
Other non-cur liabilities 856.8 850.5 753.5 731.1 836.3
Equity 11,044.1 10,966.5 10,084.0 10,068.7 9,605.9
Net Debt 6,261.9 7,676.2 8,445.8 8,606.1 8,526.3
17


LOGO

4-4 Subscribers (KT only)
Wireless 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 QoQ YoY
Total Wireless Subscribers(*1,000) 17,371 17,354 17,205 17,300 17,293 17,564 17,955 18,080 0.7% 4.5%
3G + LTE 16,443 16,439 16,325 16,454 16,473 16,774 17,184 17,328 0.8% 5.3%
WiBro 928 915 880 846 820 790 771 753 -2.3% -11.0%
Mobile Subscribers(*1,000)
Gross addition 1,273 1,224 1,080 1,404 1,477 1,459 1,793 1,255 -30.0% -10.6%
Deactivation 1,332 1,227 1,195 1,274 1,458 1,159 1,383 1,111 -19.6% -12.8%
Net addition -59 -3 -114 129 19 301 410 144 -65.0% 11.0%
Churn rate (%) 2.7% 2.5% 2.4% 2.6% 2.9% 2.3% 2.7% 2.1% -0.6%p -0.5%p
Subscribers 16,443 16,439 16,325 16,454 16,473 16,774 17,184 17,328 0.8% 5.3%
? Mobile : WCDMA + LTE
Mobile ARPU (KRW)
Wireless Service 31,116 31,615 31,332 32,160 32,902 33,619 34,829 35,283 1.3% 9.7%
Interconnection 2,920 3,060 3,242 3,450 3,523 3,595 3,896 1,392 -64.3% -59.6%
ARPU: WCDMA+LTE Wireless service : Voice + Data
Wireline 1Q13 2Q13 3Q13 4Q13 1Q14 2Q14 3Q14 4Q14 QoQ YoY
Subscribers (*1,000)
Telephony 18,496 18,323 18,173 18,018 17,789 17,615 17,469 17,259 -1.2% -4.2%
PSTN 15,113 14,916 14,712 14,513 14,309 14,165 14,037 13,849 -1.3% -4.6%
VoIP 3,383 3,407 3,462 3,505 3,480 3,450 3,432 3,411 -0.6% -2.7%
Broadband 8,050 8,038 8,041 8,067 8,037 8,039 8,107 8,129 0.3% 0.8%
IPTV 4,228 4,477 4,713 4,968 5,158 5,366 5,635 5,859 4.0% 17.9%
18


LOGO

Thank you kt