6-K 1 d578005d6k.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 August 2013

Commission File Number 1-14926

 


 

KT Corporation

(Translation of registrant’s name into English)

 


 

206 Jeongja-dong

Bundang-gu, Seongnam-si

Gyeonggi-do

463-711

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  þ            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  þ

 

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: August 5, 2013

KT Corporation

By:

  /s/    YOUNGWOO KIM        
Name:   Youngwoo Kim
Title:   Vice President

By:

  /s/    JUNGSUP JUNG        
Name:   Jungsup Jung
Title:   Team Leader


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kt 2Q13

Earnings Release

kt, global ICT convergence leader

Investor Relations 2013. 8. 2 kt


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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.

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Contents

1 Financial Highlights

2 Business Overview

3 Q&A

4 Appendix

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K-IFRS / Consolidated

1-1 Financial Highlights

Income Statement

Operating revenue 5,757.0bn

(YoY) +0.8%/(QoQ) -5.7%

Operating income 348.3bn

(YoY) +0.7%/(QoQ) -5.2%

Net income 133.4bn

(YoY) -43.3%/(QoQ) -37.3%

EBITDA 1,228.1bn

(YoY) +9.8%/(QoQ) -1.4%

(Unit: KRW bn) 2Q13 2Q12 YoY 2Q13 1Q13 QoQ

Operating revenue 5,757.0 5,708.7 0.8% 5,757.0 6,104.5 -5.7%

Operating expense 5,408.8 5,363.1 0.9% 5,408.8 5,737.2 -5.7%

Operating income 348.3 345.7 0.7% 348.3 367.3 -5.2%

Margin (%) 6.0% 6.1% 0.0%p 6.0% 6.0% 0.0%p

Non-operating income (loss) -147.3 -48.7 202.4% -147.3 -72.0 104.6%

Income before income taxes 201.0 297.0 -32.3% 201.0 295.3 -31.9%

Net income 133.4 235.4 -43.3% 133.4 212.6 -37.3%

Margin (%) 2.3% 4.1% -1.8%p 2.3% 3.5% -1.2%p

EBITDA 1,228.1 1,118.9 9.8% 1,228.1 1,246.0 -1.4%

Margin (%) 21.3 19.6% 1.7%p 21.3% 20.4% 0.9%p

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K-IFRS / Consolidated

1-2 Financial Highlights

Major Subsidiaries

Consolidated from 4Q11

Operating Revenue

Operating Profit

798.8 740.7 776.7 47.8 55.0 46.9

2Q12 1Q13 2Q13

2Q12 1Q13 2Q13

Consolidated from 1Q11

134.8 154.4 153.8 14.5 31.6 21.0

2Q12 1Q13 2Q13

2Q12 1Q13 2Q13

Consolidated from 3Q12

174.3 194.1 216.3 21.9 25.1 22.6

2Q12 1Q13 2Q13

2Q12 1Q13 2Q13

(Unit: KRW bn)

55.5 131.3 155.0

44.5% 35.7% 16.1%

2Q12 1Q13 2Q13

Operating income contribution of subsidiaries

% of subsidiaries’ OP

Operating income contribution of subsidiaries=

Consolidated OP – kt stand alone OP

Contribution from subsidiaries increased due to improved performances of kt estate, kth and other subsidiaries

Subsidiaries’ financials are consolidated figures

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K-IFRS / Consolidated

1-3 Financial Highlights

Operating Revenue

• Operating revenue 5,757.0bn

(YoY) +0.8%/(QoQ) -5.7%

- Wireless revenue increased due to ARPU growth led by LTE subscriber expansion (YoY) +0.7%/(QoQ) -0.2%

- Wireline revenue decreased (YoY) -6.4%/(QoQ) -0.9%

- Media/Contents revenue increased

35.3% YoY stemmed from subscriber growth

- Finance/Rental revenue increased 14.3% YoY as kt Rental was consolidated

(Unit: KRW bn)

2Q13 2Q12 YoY 2Q13 1Q13 QoQ

Wireless 1,752.2 1,740.1 0.7% 1,752.2 1,756.6 -0.2%

Wireline 1,507.7 1,611.3 -6.4% 1,507.7 1,521.9 -0.9%

Media/Contents 334.9 247.6 35.3% 334.9 314.1 6.6%

Finance/Rental 965.2 844.1 14.3% 965.2 916.9 5.3%

Others 378.2 292.8 29.2% 378.2 431.8 -12.4%

Merchandise 818.9 972.8 -15.8% 818.9 1,163.3 -29.6%

Total 5,757.0 5,708.7 0.8% 5,757.0 6,104.5 -5.7%

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K-IFRS / Consolidated

1-4 Financial Highlights

Operating Expenses

‰ Operating expenses 5,408.8bn (YoY) +0.9%/(QoQ) -5.7%

- Real estate development cost and content sourcing fee led to YoY increase in the cost of service provided (YoY) +17.0%/(QoQ) -0.5%

- Less handset sales and decrease in the average handset price led cost of merchandise to fall

- (YoY) -20.1%/(QoQ) -32.7%

- Marketing cost fell due to less competition in wireless market (YoY) -7.0%/(QoQ) -10.4%

(Unit: KRW bn)

2Q13 2Q12 YoY 2Q13 1Q13 QoQ

Labor cost 813.3 744.0 9.3% 813.3 804.3 1.1%

General expenses 2,503.2 2,441.0 2.5% 2,503.2 2,403.9 4.1%

Cost of service provided 739.9 632.6 17.0% 739.9 743.6 -0.5%

Selling expenses 580.0 579.2 0.1% 580.0 638.0 -9.1%

Cost of merchandise 772.4 966.2 -20.1% 772.4 1,147.3 -32.7%

Total 5,408.8 5,363.1 0.9% 5,408.8 5,737.2 -5.7%

Marketing Cost (kt Stand alone, Profit from handset sales adjusted)

(Unit: KRW bn)

2Q13 2Q12 YoY 2Q13 1Q13 QoQ

Marketing Cost

624.9 671.9 -7.0% 624.9 697.6 -10.4%

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K-IFRS / Consolidated

1-5 Financial Highlights

Financial Position

‰ Debt Position

- Total Debt : 11,810bn

- Net Debt : 9,929bn

‰ Debt Ratio

- Liability to Equity : 156.0%

- Net Debt to Equity : 75.9%

(Unit: KRW bn)

2Q13 2Q12 YoY 2Q13 1Q13 QoQ

Assets 33,490.3 32,170.0 4.1% 33,490.3 34,074.9 -1.7%

Cash and cash 1,881.6 1,401.3 34.3% 1,881.6 1,492.5 26.1%

equivalents

Liabilities 20,409.5 19,474.2 4.8% 20,409.5 21,135.4 -3.4%

Borrowings 11,810.3 10,999.2 7.4% 11,810.3 11,587.6 1.9%

Equity 13,080.8 12,695.8 3.0% 13,080.8 12,939.5 1.1%

Capital stock 1,564.5 1,564.5 0.0% 1,564.5 1,564.5 0.0%

Net Debt 9,928.8 9,597.9 3.4% 9,928.8 10,095.1 -1.6%

Liabilities/Equity 156.0% 153.4% 2.6%p 156.0% 163.3% -7.3%p

Net Debt/Equity 75.9% 75.6% 0.3%p 75.9% 78.0% -2.1%p

166.0% 153.4% 155.4% 161.9% 163.3% 156.0%

Liabilities/Equity 79.4% 78.0%

Net Debt/Equity 75.6% 76.8% 75.9% 71.2%

1Q 12 2Q 12 3Q 12 4Q 12 1Q 13 2Q 13

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K-IFRS / kt Stand Alone

1-6 Financial Highlights

CAPEX

‰ Total Capex

- 2Q13 : 603.7bn

(YoY) -39.5%/(QoQ) 15.9%

- FY2013 Guidance : KRW 3.5 tn

‰ Wireline Capex

- 2Q13 : 228.1 bn

- FY 2013 Guidance : KRW 1.2 tn

‰ Wireless CAPEX

- 2Q13 : 182.2bn

- FY 2013 Guidance : KRW 1.6 tn

Overhead

Wireless

Wireline

998.5

149.6

560.4

288.5

2Q 12

521.1

136.0

247.1

138.0

1Q 13

(Unit: KRW bn)

603.7

193.4

182.2

228.1

2Q 13

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1 Financial Highlights

2 Business Overview

3 Q&A

4 Appendix

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K-IFRS / Consolidated

2-1 Business Overview

Wireless

ARPU growth from LTE subscriber expansion led to 0.7% YoY revenue increase

Wireless ARPU recorded KRW 31,615, up 1.6% QoQ

Smartphone subscribers stand at 11m, accounting for 66.7% of total subscribers

Continue to enhance service quality through differentiated pricing plans and bundled products of integrated All-IP network infra

(Unit: KRW bn)

2Q13 2Q12 YoY 2Q13 1Q13 QoQ

Service 1,495.2 1,455.8 2.7% 1,495.2 1,492.8 0.2%

Interconnection 141.9 170.1 -16.6% 141.9 137.8 3.0%

Others 115.0 114.2 0.7% 115.0 126.0 -8.7%

Wireless 1,752.2 1,740.1 0.7% 1,752.2 1,756.6 -0.2%

<Smartphone Subscribers> (Unit: 1,000 / %)

8,537 9,135 9,787 10,251 10,734 10,973

351 1,170 2,488 3,900 5,068 6,057

8,186 7,966 15.1% 30.8% 36.8%

2.1% 7.1% 7,299 6,351 23.6% 5,665 4,916

1Q12 2Q12 3Q12 4Q12 1Q13 2Q13

LTE Subscribers 3G Smartphone % of LTE

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K-IFRS / Consolidated

2-2 Business Overview

Wireline

Due to decrease in both subscriber and MOU of Telephony, total Wireline revenue fell 6.4% YoY

(Unit: KRW bn)

2Q13 2Q12 YoY 2Q13 1Q13 QoQ

Telephony 765.0 856.9 -10.7% 765.0 781.7 -2.1%

Broadband 442.0 431.1 2.5% 442.0 436.7 1.2%

Line lease 300.7 323.3 -7.0% 300.7 303.5 -0.9%

Wireline 1,507.7 1,611.3 -6.4% 1,507.7 1,521.9 -0.9%

Continue to enhance average revenue per line (ARPL) with the broadband as a pivotal bundle service with IPTV, VoIP, and mobile

<Wireline Subscribers> (Unit: 1,000 / %)

7,922 7,967 8,009 8,037 8,050 8,038

3,294 3,326 3,344 3,348 3,383 3,407

15,771 15,630 15,493 15,318 15,113 14,916

69% 70% 70% 71% 71% 68%

1Q12 2Q12 3Q12 4Q12 1Q13 2Q13

Broadband VoIP PSTN BB Bundled

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K-IFRS / Consolidated

2-3 Business Overview

Media / Contents

Expansion of kt Group Media subscribers led to 35.3% YoY revenue growth

kt Group Media Subscribers

OTV : 2.45m

OTS : 2.03m

Skylife only : 1.97m

(Unit: KRW bn)

2Q13 2Q12 YoY 2Q13 1Q13 QoQ

Media 292.1 233.1 25.3% 292.1 280.4 4.2%

Contents 42.8 14.5 195.5% 42.8 33.6 27.1%

Media/Contents 334.9 247.6 35.3% 334.9 314.1 6.6%

<Media Subscribers> (Unit: 1,000)

5,341 5,593 5,796 6,039 6,215 6,443

2,262 2,327 2,450

2,150 2,193 2,015

1,301 1,421 1,590 1,768 1,901 2,027

2,025 2,022 2,013 2,009 1,987 1,967

1Q12 2Q12 3Q12 4Q12 1Q13 2Q13

OTV OTS Skylife only

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K-IFRS / Consolidated

2-4 Business Overview

Finance / Rental

Finance/Rental revenue

Due to consolidation of kt Rental in 3Q12, revenue increased by 14.3% YoY

Other Services revenue

Revenues from real estate development led to 29.2% YoY revenue growth

(Unit: KRW bn)

2Q13 2Q12 YoY 2Q13 1Q13 QoQ

Finance/Rental 965.2 844.1 14.3% 965.2 916.9 5.3%

Finance 819.7 844.1 -2.9% 819.7 785.6 4.3%

Rental 145.5 0.0 - 145.5 131.3 10.9%

Other Service 378.2 292.8 29.2% 378.2 431.8 -12.4%

IT/Solution 167.5 161.2 3.9% 167.5 131.0 27.9%

Real estate 82.9 44.2 87.4% 82.9 192.4 -56.9%

Other Subsidiaries 127.8 87.4 46.2% 127.8 108.4 17.8%

Others

Merchandise

Due to less handset sales volume and fall in the average handset price, merchandise sales decreased by 15.8% YoY

(Unit: KRW bn)

2Q13 2Q12 YoY 2Q13 1Q13 QoQ

Merchandise 818.9 972.8 -15.8% 818.9 1,163.3 -29.6%

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Q & A

1 Financial Highlights

2 Business Overview

3 Q&A

4 Appendix

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1 Financial Highlights

2 Business Overview

3 Q&A

4 Appendix

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4-1 K-IFRS Quarterly Income Statements

(Unit: KRW bn)

Consolidated I/S 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13

Operating revenue 5,706 5,709 6,173 6,203 6,104 5,757

Service Revenue 4,708 4,736 4,860 4,885 4,941 4,938

Wireless 1,716 1,740 1,754 1,703 1,757 1,752

Fixed line 1,664 1,611 1,568 1,549 1,522 1,508

Media/Contents 231 248 266 323 314 335

Finance/Rental 836 844 939 955 917 965

Other service 262 293 332 355 432 378

Merchandise rev. 998 973 1,312 1,318 1,163 819

Operating expense 5,126 5,363 5,946 6,142 5,737 5,409

Service expense 4,128 4,397 4,689 4,874 4,590 4,636

Labor expense 737 744 760 835 804 813

General expense 2,364 2,441 2,510 2,712 2,404 2,503

Depreciation 763 773 874 857 879 880

Commissions 333 346 333 406 262 298

Advertising 24 40 40 47 32 38

Financial biz exp 693 701 675 703 632 675

Other general exp 550 581 589 699 599 612

Cost of svc provided 596 633 685 699 744 740

Cost of service 254 324 341 449 394 434

Interconnection fees 259 239 247 156 203 209

Other cost of service 83 69 97 94 147 98

Selling expense 431 579 734 628 638 580

Sales expense 399 549 694 588 592 530

Bad debt expense 33 30 40 40 46 50

Cost of merch sold 998 966 1,257 1,268 1,147 772

Operating income 580 346 227 61 367 348

EBITDA 1,343 1,119 1,101 919 1,246 1,228

N-OP income(loss) -58 -49 240 76 -72 -147

N-operating income 192 74 472 547 223 143

N-operating expense 255 130 236 476 296 293

Equity Method (G/L) 4 8 4 5 1 3

Income bf taxes 522 297 466 137 295 201

Income tax 117 62 97 4 83 68

Net income 405 235 370 101 213 133

NI contributable to kt 387 220 359 92 182 109

kt Stand Alone I/S 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13

Operating revenue 4,601 4,575 4,941 4,747 4,791 4,359

Service Revenue 3,640 3,622 3,639 3,562 3,679 3,560

Wireless 1,691 1,715 1,731 1,678 1,734 1,731

Fixed line 1,682 1,616 1,590 1,554 1,507 1,485

Media/Contents 102 110 122 132 130 132

Finance/Rental

Other service 164 180 196 198 307 212

Merchandise rev. 961 953 1,302 1,184 1,112 799

Operating expense 4,078 4,285 4,722 4,718 4,555 4,166

Service expense 3,085 3,320 3,480 3,559 3,438 3,389

Labor expense 606 605 599 691 641 635

General expense 1,517 1,594 1,573 1,751 1,563 1,607

Depreciation 725 734 736 731 732 723

Commissions 333 347 346 405 325 346

Advertising 22 38 36 41 30 39

Financial biz exp

Other general exp 438 476 455 573 476 500

Cost of svc provided 506 493 524 464 541 511

Cost of service 165 184 181 214 192 203

Interconnection fees 259 239 246 155 202 209

Other cost of service 83 70 97 95 147 98

Selling expense 457 627 784 653 693 637

Sales expense 437 607 758 629 657 597

Bad debt expense 20 21 26 24 36 39

Cost of merch sold 993 965 1,241 1,159 1,116 776

Operating income 523 290 219 29 236 193

EBITDA 1,247 1,024 955 760 968 916

N-OP income(loss) -64 -59 116 97 -70 -150

N-operating income 178 62 338 538 245 127

N-operating expense 243 122 222 441 316 277

Equity Method (G/L)

Income bf taxes 458 231 335 126 166 44

Income tax 98 44 71 228 26 9

Net income 361 187 263 -102 140 35

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4-2 K-IFRS Statement of Financial Position

(Unit: KRW bn)

Consolidated 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13

Asset 33,118 32,170 33,729 34,479 34,075 33,490

Current assets 10,919 9,831 10,486 10,483 10,546 10,108

Cash & cash equivalents 1,571 1,401 1,274 2,055 1,493 1,882

Trade & other rec 5,210 4,927 4,732 4,534 4,214 4,080

Inventories 895 942 801 935 1,215 866

Other current assets 3,242 2,560 3,678 2,959 3,625 3,280

Non-current assets 22,198 22,339 23,243 23,997 23,529 23,382

Trade & other rec 1,513 1,211 927 1,071 751 805

P.P.E 14,196 14,493 15,358 15,734 15,739 15,714

Other non-cur assets 6,490 6,635 6,958 7,191 7,039 6,864

Liabilities 20,669 19,474 20,522 21,315 21,135 20,409

Current liabilities 10,572 9,585 10,232 11,247 11,184 10,640

Trade & other payables 6,606 5,909 6,446 7,216 6,964 6,046

Short-term borrowings 3,074 2,832 2,968 3,187 3,356 3,798

Other current liabilities 892 843 819 844 864 796

Non-current liabilities 10,097 9,890 10,290 10,068 9,951 9,770

Trade & other payables 658 585 738 701 605 603

Long-term borrowings 8,377 8,167 8,449 8,237 8,231 8,012

Other non-cur liabilities 1,062 1,138 1,104 1,130 1,115 1,154

Equity 12,449 12,696 13,207 13,165 12,939 13,081

Net debt 9,880 9,598 10,142 9,369 10,095 9,929

kt Stand Alone 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13

Asset 27,126 26,412 25,978 26,509 25,766 24,876

Current assets 7,072 6,310 6,093 6,090 5,899 5,107

Cash & cash equivalents 809 791 501 1,173 531 794

Trade & other rec 4,740 4,500 4,264 3,951 3,608 3,352

Inventories 723 764 613 809 1,082 713

Other current assets 800 254 715 156 677 249

Non-current assets 20,054 20,103 19,885 20,419 19,867 19,768

Trade & other rec 1,396 1,099 788 926 600 648

P.P.E 13,464 13,744 13,604 13,009 12,854 12,723

Other non-cur assets 5,194 5,260 5,493 6,484 6,412 6,398

Liabilities 15,503 14,592 13,884 14,638 14,241 13,331

Current liabilities 7,347 6,582 6,181 7,338 7,294 6,752

Trade & other payables 4,824 4,322 4,059 4,966 4,542 3,701

Short-term borrowings 1,877 1,657 1,568 1,781 2,183 2,539

Other current liabilities 646 603 554 591 569 512

Non-current liabilities 8,155 8,010 7,703 7,300 6,947 6,579

Trade & other payables 611 543 697 676 577 568

Long-term borrowings 6,811 6,658 6,168 5,785 5,568 5,176

Other non-cur liabilities 734 809 838 838 802 835

Equity 11,623 11,821 12,094 11,871 11,525 11,545

Net debt 8,291 7,871 7,745 6,851 7,586 7,279

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4-3 Subscribers (kt only)

Wireless 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 QoQ YoY

Total Wireless Subscribers 17,435 17,389 17,416 17,436 17,371 17,354 -0.1% -0.2%

3G + LTE 16,599 16,488 16,480 16,502 16,443 16,439 0.0% -0.3%

WiBro 836 902 936 934 928 915 -1.5% 1.5%

Mobile Subscribers (*1,000)

Gross addition 1,423 1,271 1,502 1,280 1,273 1,224 -3.8% -3.7%

Deactivation 1,387 1,382 1,509 1,259 1,332 1,227 -7.9% -11.2%

Net addition 36 -111 -8 22 -59 -3 -94.4% -97.0%

Churn rate (%) 2.7% 2.8% 3.1% 2.5% 2.7% 2.5% -0.2%p -0.3%p

Subscribers 16,599 16,488 16,480 16,502 16,443 16,439 0.0% -0.3%

Mobile: 2G + 3G + LTE

Mobile ARPU (Won)

Wireless Service 28,722 29,447 29,970 30,697 31,116 31,615 1.6% 7.4%

Interconnection 3,869 3,531 3,571 1,858 2,920 3,060 4.8% -13.3%

ARPU: 3G+LTE

Wireless service : Voice + Data

Wireline 1Q12 2Q12 3Q12 4Q12 1Q13 2Q13 QoQ YoY

Subscribers (*1,000)

Telephony 19,065 18,957 18,837 18,666 18,496 18,323 -0.9% -3.3%

PSTN 15,771 15,630 15,493 15,318 15,113 14,916 -1.3% -4.6%

VoIP 3,294 3,326 3,344 3,348 3,383 3,407 0.7% 2.4%

Broadband 7,922 7,967 8,009 8,037 8,050 8,038 -0.1% 0.9%

IPTV 3,316 3,571 3,783 4,030 4,228 4,477 5.9% 25.4%

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Thank you kt