1Q26 Earnings Release
2 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 change without notice. No presentation or warranty, expressed or implied, is made and no reliance should be placed on the accuracy, actuality, fairness, or completeness of the information presented. The Company has applied new accounting standard of K-IFRS 1115 as of Jan 1st, 2018 and K-IFRS 1116 ‘Leases’ as of Jan 1st, 2019. There are no obligation to apply the new standard to previous financial statements. If you have any questions related to this material, please contact the IR department. Tel: +82-70-4193-4036
1 1Q26 Highlights 2 Financial Highlights 3 Business Overview 4 Appendix Contents
4 1Q26 Highlights 6,778.4bn (YoY -1.0%) 482.7 bn (YoY -29.9%) 4,834.6bn (YoY +3.3%) 313.9bn (YoY -21.5%) OP declined due to high base effect from prior-year real estate project*Financials Operating Profit RevenueCons. Sep. Operating Profit Revenue (Unit: KRW) Management Strategy FY26-28Shareholder Return Policy Shareholder Return ✓Resource: 50% of adjusted net income (KT separate) ✓Method: Cash dividend, share buyback & cancellation ✓Adjustments: Non-cash and non-recurring items ✓FY26 Guidance : Minimum KRW 2,400 per share ✓Build customer trust and growth foundation - Advance Cyber security/ Network Infra / IT Infra ✓Secure AX growth drivers - Industry-specific AX / Hyper- personalized AX / Future growth AX ✓Steady execution of Value-up plan AX Platform Company Qualified High-dividend company Tax Benefits 1) Record date('26.5.27), Payment('26.6.11), 2) Trust contract for acquisition of treasury shares ('26.03.10~'26.9.9) * Gwangjin-gu Lotte Eastpole Apartment DPS KRW 600 1Q26 Dividend1 KRW 250bn (FY26 Value-up Plan) Share buyback /Cancellation2 1-1
1 1Q26 Highlights 2 Financial Highlights 3 Business Overview 4 Appendix Contents
6 Income Statement1 (Unit: KRW bn) 1) OP Margin1 = Operating Income/Service Revenue 1Q25 4Q25 1Q26 QoQ YoY Operating Revenue 6,845.1 6,845.0 6,778.4 -1.0% -1.0% Service Revenue 5,700.4 5,949.4 5,733.4 -3.6% 0.6% Sale of goods 1,144.7 895.6 1,045.0 16.7% -8.7% Operating Expense 6,156.3 6,617.7 6,295.7 -4.9% 2.3% Operating Income 688.8 227.3 482.7 112.3% -29.9% Margin 10.1% 3.3% 7.1% 3.9%p -2.9%p Margin1 12.1% 3.8% 8.4% 4.6%p -3.7%p Non-op. Income/Loss 23.1 -89.5 29.8 Turned to profit 29.4% Income before taxes 711.8 137.9 512.5 271.7% -28.0% Net Income 566.8 91.5 388.3 324.7% -31.5% Margin 8.3% 1 .3% 5.7% 4.4%p -2.6%p EBITDA 1,657.4 1,197.3 1,440.0 20.3% -13.1% Margin 24.2% 1 7.5% 21.2% 3.8%p -3.0%p K-IFRS / Consolidated • Revenue -1.0% YoY due to slower growth of wireless biz. and base effect of real-estate project • OP -29.9% YoY due to base effect of real-estate project in 2025 and increased costs
7 Operating Expenses2 (Unit: KRW bn) [Selling Expense (KT Separate)] (Unit: KRW bn) • Operating expenses +2.3% YoY impacted by higher selling expense and labor cost, despite lower depreciation expense K-IFRS / Consolidated 1Q25 4Q25 1Q26 QoQ YoY Operating Expenses 6,156.3 6,617.7 6,295.7 -4.9% 2.3% Labor Cost 1,121.8 1,184.0 1,173.9 -0.9% 4.6% General Expense 2,655.8 2,788.9 2,592.7 -7.0% -2.4% - Depreciation 968.7 969.9 957.3 -1.3% -1.2% Cost of Service 738.4 701.2 746.3 6.4% 1.1% Selling Expense 598.0 874.8 652.7 -25.4% 9.1% Cost of Goods sold 1,042.3 1,068.7 1,130.2 5.8% 8.4% 1Q25 4Q25 1Q26 QoQ YoY Selling Expense 625.5 883.8 687.3 -22.2% 9.9%
8 Balance Sheet3 • Net debt-to-equity ratio -3.9%p followed by lower borrowings (Unit: KRW bn) K-IFRS / Consolidated 129.8% 127.3% 122.8% 132.7% 130.0% 123.5% 123.3% 120.7% 117.6% 38.5% 33.5% 30.3% 37.8% 43.8% 36.8% 34.5% 37.4% 39.9% 1Q24 2Q24 3Q24 4Q24 1Q25 2Q25 3Q25 4Q25 1Q26 Debt/Equity Net Debt/Equity Mar. 31, 2025 Dec. 31, 2025 Mar. 31, 2026 QoQ YoY Assets 42,185.6 42,948.6 43,510.0 1.3% 3.1% Cash & Cash equivalents 3,133.0 3,507.0 2,860.1 -18.4% -8.7% Liabilities 23,847.3 23,490.6 23,516.4 0.1% -1.4% Borrowings 11,169.5 10,785.6 10,836.6 0.5% -3.0% Equity 18,338.3 19,458.0 19,993.6 2.8% 9.0% Capital Stock 1,564.5 1,564.5 1,564.5 - - Net Debt 8,036.5 7,278.6 7,976.5 9.6% -0.7% Debt / Equity 130.0% 120.7% 117.6% -3.1%p -12.4%p Net Debt / Equity 43.8% 37.4% 39.9% 2.5%p -3.9%p
9 CAPEX4 ■ Major Subsidiaries’ CAPEX Includes Finance, Media, DC/Cloud, Real Estate, etc. ■ KT Separate CAPEX Access network, Backbone Network, B2B and etc. K-IFRS / Separate and major subsidiaries (Unit: KRW bn) • 1Q26 Total CAPEX Execution : KRW 304.2bn(KT Separate), KRW 59.5bn(Major Subsidiaries) 2,412 2,300 2,144 304 907 824 796 59 2023 2024 2025 1Q26 KT Major Subsidiaries 3,319 3,124 2,940 364
1 1Q26 Highlights 2 Financial Highlights 3 Business Overview 4 Appendix Contents
11 KT - Wireless • Wireless service revenue +0.4% YoY with subscriber trends returning to net additions following the early termination fee waiver period (5G penetration 82.7%) • Enhancing profitability through personalized AX and stronger digital distribution channels 1 (Unit: KRW bn) 1Q25 4Q25 1Q26 QoQ YoY Wireless 1,753.1 1,811.0 1,757.4 -3.0% 0.2% Wireless Service 1,676.8 1,735.7 1,683.0 -3.0% 0.4% Interconnection 76.3 75.3 74.3 -1.3% -2.5% Wireless Subscribers (Unit: Thousands) K-IFRS / Separate 7,259 7,649 8,057 8,368 8,749 5,832 6,180 6,574 6,974 7,019 2,802 2,795 2,649 2,487 2,324 10,552 10,866 11,048 11,156 11,070 1Q25 2Q25 3Q25 4Q25 1Q26 Handset(5G) Handset(exc.5G) 2nd device & IoT MVNO 26,445 27,491 28,328 28,985 29,162
12 KT - Fixed Line • Broadband rev up +1.8% YoY, due to increase in GiGA subscribers and value-added services • Media rev. up +1.3% YoY, backed by IPTV net adds and higher uptake of premium plans 2 (Unit: Thousands) Broadband Subscribers (Unit: Thousands) IPTV Subscribers 1Q25 4Q25 1Q26 QoQ YoY Fixed Line 1,311.7 1,333.0 1,321.6 -0.9% 0.8% Broadband 628.7 636.8 640.2 0.5% 1.8% Media 519.2 538.3 526.0 -2.3% 1.3% Home Telephony 163.8 157.9 155.4 -1.6% -5.1% Subscribers GiGA (%) (Unit: KRW bn) K-IFRS / Separate 9,984 10,073 10,135 10,170 10,188 1Q25 2Q25 3Q25 4Q25 1Q26 69.4% 69.7% 70.0% 70.1% 70.1% 9,438 9,490 9,520 9,533 9,520 1Q25 2Q25 3Q25 4Q25 1Q26
13 KT - B2B Services3 (Unit: KRW bn) Corp.Broadband/Data Revenue Revenue of AI/IT ※ AI/IT rev includes: AX platform-based including AICC, IoT, Multi/Hybrid Cloud, and Smart Mobility 1Q25 4Q25 1Q26 QoQ YoY B2B Service 892.2 858.6 872.4 1.6% -2.2% (Unit: KRW bn) (Unit: KRW bn) ※ Corp. Broadband/Data rev includes: Leased line, Kornet, VPN, Global data K-IFRS / Separate • B2B revenue -2.2% YoY due to ongoing streamlining of low-margin businesses and completion of large-scale DC Design&Build project YoY +2.7% 335.4 338.3 329.3 331.4 335.4 1Q25 2Q25 3Q25 4Q25 1Q26 280.7 317.6 294.3 247.4 274.2 1Q25 2Q25 3Q25 4Q25 1Q26 YoY -2.3%
14 Major Subsidiaries4 • kt cloud rev. remained flat YoY, as public sector orders and higher occupancy at Gasan DC offset lower DC Design & Build revenue • kt estate rev. +72.9% YoY supported by growth in hotel business and new development* project Revenue of Major Subsidiaries (consolidated) 1Q25 4Q25 1Q26 QoQ YoY BC Card 872.0 934.9 873.7 -6.6% 0.2% kt skylife 242.9 247.4 239.0 -3.4% -1.6% Content Subsidiaries* 143.7 155.3 146.4 -5.7% 1.9% kt cloud 249.1 277.9 250.1 -10.0% 0.4% kt estate 137.3 234.8 237.4 1.1% 72.9% *kt nasmedia,kt studiogenie(Genie music, Storywiz, and others incl.) *Earnings of PlayD was reflected up to 1Q25(disposed on Apr. 3,2025) Subsidiaries’ OP Contribution (Unit: KRW bn) K-IFRS / Consolidated(each subsidiary) (Unit: KRW bn) Excluding one-off(Gwangjin-gu real-estate PJT) gains (proportion) * Daejeon HR Center 288.7 546.1 197.3 132.1 1Q25 2Q25 3Q25 4Q25 1Q26 168.8
1 1Q26 Highlights 2 Financial Highlights 3 Business Overview 4 Appendix Contents
16 K-IFRS Income Statement1 (Unit: KRW bn) Consolidated 1Q25 2Q25 3Q25 4Q25 1Q26 KT Separate 1Q25 2Q25 3Q25 4Q25 1Q26 Operating revenue 6,845.1 7,427.4 7,126.7 6,845.0 6.778.4 Operating revenue 4,682.0 4,772.8 5,109.0 4,760.2 4,834.6 Service revenue 5,700.4 5,817.8 5,920.8 5,949.4 5.733.4 Service revenue 4,044.5 4,131.7 4,179.9 4,122.5 4,069.1 Sale of goods 1,144.7 1,609.6 1,205.9 895.6 1.045.0 Handset revenue 637.5 641.1 929.1 637.7 765.5 Operating expense 6,156.3 6,412.6 6,588.6 6,617.7 6.295.7 Operating expense 4,281.9 4.304.1 4,768.1 4,664.9 4,520.7 Cost of Service 5,114.1 5,129.9 5,304.6 5,548.9 5.165.6 Cost of Service 3,620.7 3.677.4 3,837.8 4,042.6 3,721.5 Labor cost 1,121.8 1,119.4 1,167.6 1,184.0 1.173.9 Labor cost 460.2 463.0 492.8 431.9 497.0 General expense 2,655.8 2,639.7 2,725.9 2,788.9 2.592.7 General expense 1,875.7 1.856.0 1,956.7 2,052.3 1,866.7 Cost of service 738.4 755.8 778.5 701.2 746.3 Cost of service 647.5 690.6 707.4 656.5 658.3 Selling expense 598.0 615.1 632.6 874.8 652.7 Selling expense 637.4 667.8 680.9 901.9 699.5 Cost of Goods sold 1,042.3 1,282.6 1,283.9 1,068.7 1.130.2 Cost of Devices sold 661.2 626.7 930.3 622.4 799.2 Operating income 688.8 1,014.8 538.2 227.3 482.7 Operating income 400.1 468.7 340.9 95.3 313.9 N-OP income (loss) 23.1 -39.9 55.3 -89.5 29.8 N-OP income (loss) 48.2 -46.2 39.3 -4.3 101.4 N-OP income 199.1 351.4 132.7 264.5 365.9 N-OP income 158.2 317.6 72.6 217.8 378.9 N-OP expense 167.9 407.1 74.2 367.7 342.9 N-OP expense 110.0 363.9 33.2 222.2 277.5 Equity Method (G/L) -8.2 15.7 -3.3 13.7 6.9 Income bf tax 711.8 974.9 593.4 137.9 512.5 Income bf tax 448.3 422.5 380.2 90.9 415.3 Income tax 145.0 241.6 148.2 46.5 124.2 Income tax 82.9 64.5 90.5 42.2 75.3 Net income 566.8 733.3 445.3 91.5 388.3 Net income 365.4 358.0 289.7 48.7 340.0 NI contribution to KT 539.8 687.9 391.5 111.7 352.2 EBITDA 1,657.4 1,990.7 1,503.9 1,197.3 1.440.0 EBITDA EBITDA Margin 1,210.6 1.281.7 1,153.8 900.2 1,110.6 EBITDA Margin 24.2% 26.8% 21.1% 17.5% 21.2% 25.9% 26.9% 22.6% 18.9% 23.0%
17 K-IFRS Balance Sheet2 Consolidated 1Q25 2Q25 3Q25 4Q25 1Q26 KT Separate 1Q25 2Q25 3Q25 4Q25 1Q26 Assets 42,185.6 42,193.3 43,012.8 42,948.6 43,510.0 Assets 29,041.0 29,008.7 29,049.2 29,677.6 30,116.3 Current assets 14,458.5 14,385.4 15,123.6 13,977.5 14,527.1 Current assets 7,016.3 7,022.2 7,127.8 7,212.5 7,521.4 Cash & cash equivalents 3,133.0 3,794.4 3,890.3 3,507.0 2,860.1 Cash & cash equi. 1,150.6 1,419.9 1,095.5 1,585.9 1,268.9 Trade & other receivables 4,217.8 3,955.6 4,215.7 3,963.7 4,192.1 Trade & other rec. 3,209.5 2,958.1 3,186.5 2,915.7 3,220.9 Inventories 853.9 443.9 443.8 416.1 537.5 Inventories 190.2 166.7 155.2 94.3 173.4 Other current asset 6,253.8 6,191.5 6,573.7 6,090.7 6,937.4 Other current asset 2,465.9 2,477.5 2,690.7 2,616.6 2,858.2 - Prepaid_Contract cost 1,325.3 1,304.0 1,450.7 1,484.6 1,445.5 - Prepaid_Contract cost 1,405.7 1,389.3 1,549.9 1,583.8 1,557.2 - Contract assets 597.9 744.2 805.2 764.9 754.8 - Contract assets 521.4 667.8 707.8 630.0 613.4 Non-current assets 27,727.1 27,808.0 27,889.2 28,971.0 28,982.9 Non-current assets 22,024.7 21,986.5 21,921.4 22,465.1 22,594.9 Trade & other rec 336.3 378.3 422.1 463.1 453.5 Trade & other rec 241.1 278.9 319.9 362.9 352.8 Tangible assets 14,398.1 14,226.4 14,121.1 14,258.5 13,862.1 Tangible assets 11,068.3 10,913.7 10,748.7 10,932.3 10,563.9 Other current assets 12,992.7 13,203.3 13,346.0 14,249.5 14,667.3 Other current assets 9,856.6 9,941.2 10,028.4 10,357.6 10,868.1 - Prepaid_Contract cost 462.3 631.5 629.2 614.5 679.4 - Prepaid_Contract cost 454.8 625.6 624.1 595.2 658.5 - Contract assets 208.3 146.1 173.2 261.4 302.8 - Contract assets 182.3 116.1 140.1 226.8 258.7 Liabilities 23,847.3 23,316.2 23,752.8 23,490.6 23,516.4 Liabilities 14,409.3 14,165.6 13,986.4 14,451.0 14,361.4 Current liabilities 13,134.6 12,123.5 12,223.6 11,692.8 12,642.1 Current liabilities 7,265.4 7,074.7 6,539.8 6,862.3 7,478.4 Trade & other payables 6,952.5 7,077.7 7,770.5 6,868.7 6,933.6 Trade & other payables 4,258.8 4,459.9 4,545.4 4,592.5 4,515.9 Short-term borrowings 3,649.1 2,934.3 2,454.1 2,499.5 3,531.8 Short-term borrowings 2,263.0 1,895.4 1,310.4 1,323.8 2,018.1 Others 2,533.0 2,111.4 1,999.0 2,324.5 2,176.8 Others 743.6 719.5 684.1 946.0 944.4 - Contract liabilities 244.1 330.3 228.1 207.8 205.6 - Contract liabilities 217.8 204.8 198.3 185.7 186.8 Non-current liabilities 10,712.7 11,192.7 11,529.2 11,797.8 10,874.3 Non-current liabilities 7,144.0 7,090.9 7,446.6 7,588.7 6,883.0 Trade & other payables 372.4 383.7 386.6 328.3 295.6 Trade & other payables 672.0 666.8 649.8 622.1 544.2 Long-term borrowings 7,520.5 7,815.9 8,078.2 8,286.0 7,304.8 Long-term borrowings 5,417.6 5,184.4 5,499.5 5,744.9 5,006.6 Others 2,819.9 2,993.2 3,064.4 3,183.5 3,273.9 Others 1,054.4 1,239.7 1,297.2 1,221.7 1,332.2 - Contract liabilities 48.4 36.6 33.4 31.9 33.5 - Contract liabilities 37.5 28.0 27.3 24.8 29.0 Equity 18,338.3 18,877.1 19,259.9 19,458.0 19,993.6 Equity 14,631.7 14,843.1 15,062.8 15,226.6 15,754.9 Retained earnings 14,197.4 14,739.9 14,986.2 14,964.3 15,174.5 Retained earnings 11,965.0 12,156.4 12,301.6 12,219.9 12,417.4 (Unit: KRW bn)
18 Subscribers3 Wireless Subscribers 1Q 25 2Q 25 3Q 25 4Q 25 1Q 26 QoQ YoY Total 26,445 27,491 28,328 28,985 29,162 0.6% 10.3% - MNO 19,186 19,842 20,271 20,618 20,413 -1.0% 6.4% - MVNO 7,259 7,649 8,057 8,368 8,749 4.6% 20.5% 5G Handset1) 10,552 10,866 11,048 11,156 11,070 -0.8% 4.9% Churn rate2) 1.0% 1.0% 1.2% 1.0% 1.7% 0.7%p 0.7%p ARPU (KRW)3) 34,856 35,236 35,295 35,335 34,781 -1.6% -0.2% 1) 5G Handset : Retroactively applied from 1Q23 based on the change of subscriber disclosure criteria by the MSIT (excludes 5G 2nd Device and 5G IoT) 2) Churn rate : Based on MNO subscribers (excludes IoT) 3) ARPU = Wireless revenue* / Wireless subscribers** * Wireless revenue(3G, LTE, 5G incl.): Revenue of Voice/Data usage (Interconnection/Subscription fee exc.), VAS, Contract/ Bundled Discounts, and etc. incl. ** Wireless subscribers: Based on MSIT’s guidelines for average billed subscribers in quarter (IoT/M2M exc.) Fixed Line Subscribers 1Q 25 2Q 25 3Q 25 4Q 25 1Q 26 QoQ YoY Telephony 11,320 11,175 11,039 10,890 10,740 -1.4% -5.1% - PSTN 8,122 7,988 7,851 7,716 7,578 -1.8% -6.7% - VoIP 3,198 3,186 3,188 3,174 3,161 -0.4% -1.1% Broadband 9,984 10,073 10,135 10,170 10,188 0.2% 2.0% IPTV (GTV+GTS) 9,438 9,490 9,520 9,533 9,520 -0.1% 0.9% (Unit: Thousands) K-IFRS / Separate (Unit: Thousands) ※ Number of IPTV subscribers above differs from MSIT figures that follow the IPTV law - Number of KT pay TV subscribers in 1H 2025 is 9,028,900 (6-month average)
