2Q26 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 2Q26 Highlights 2 Financial Highlights 3 Business Overview 4 Appendix Contents
4 Transform into AX Platform Company 2Q26 Highlights OP declined due to prior-year base(real estate pjt.*), while achieving QoQ turnaround Financials Operating Profit RevenueCons. Sep. Operating Profit Revenue (Unit: KRW) * Gwangjin-gu Lotte Eastpole Apartment 1-1 Management Strategy Value-up & Shareholder Return Announced progress & plan(Aug.12) Value-up Plan KRW 250bn (FY26 Value up plan) Share Buyback/ Cancellation Asia AX Connectivity Hub Demand –driven expansionby 2031 of AIDC capacity(+1 GW) & Subsea cable(+90 Tbps) AX growth drivers B2BIndustry specific AX/ B2C Hyper-personalized AX / Future growth AX ‘Zero Trust’-based Cyber security & IT Governance Integration / Prevention Framework / Workforce expansion / External expert collaboration Network infrastructure Enhancement of network quality & capacity / Advancing future network technologies 6,679.9bn (QoQ -1.5%, YoY -10.1%) 648.3bn (QoQ +34.3%, YoY -36.1%) 4,523.5bn (QoQ -6.4%, YoY +3.3%) 313.9bn (QoQ +23.9%, YoY -17.0%) KRW 600 2Q26 DPS1 1)Record date(‘26.7.29), Payment(‘26.8.13), 2)Trust contract for acquisition of treasury share('26.03.10~'26.9.9)
5 AX Platform Company AX Enhance profitability AssetOptimization Additional Shareholder Return FY2028 Financial Target and Action plans1-2
1 2Q26 Highlights 2 Financial Highlights 3 Business Overview 4 Appendix Contents
7 Financial Highlights1 (Unit: KRW bn) 1) OP Margin1 = Operating Income/Service Revenue 2Q25 1Q26 2Q26 QoQ YoY Operating Revenue 7,427.4 6,778.4 6,679.9 -1.5% -10.1% Service Revenue 5,817.8 5,733.4 5,922.9 3.3% 1.8% Sale of goods 1,609.6 1,045.0 757.0 -27.6% -53.0% Operating Expense 6,412.6 6,295.7 6,031.6 -4.2% -5.9% Operating Income 1,014.8 482.7 648.3 34.3% -36.1% Margin 13.7% 7.1% 9.7% 2.7%p -4.0%p Margin1 17.4% 8.4% 10.9% 2.5%p -6.5%p Non-op. Income/Loss -39.9 29.8 -2.2 Turned to loss Narrowing loss Income before taxes 974.9 512.5 646.1 26.1% -33.7% Net Income 733.3 388.3 480.6 23.7% -34.5% Margin 9.9% 5.7% 7.2% 1.5%p -2.7%p EBITDA 1,990.7 1,440.0 1,589.4 10.4% -20.2% Margin 26.8% 21.2% 23.8% 2.5%p -3.0%p CAPEX 712.6 363.7 509.1 40.0% -28.6% K-IFRS / Consolidated • Revenue -10.1% YoY due to prior-year base effect (real estate pjt.) and lower wireless revenue following the appreciation program • OP -36.1% YoY followed by prior-year base effect and decline of KT separate OP
8 CAPEX2 ■ 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) • 1 H26 Total CAPEX Execution : KRW 718.0bn(KT Separate), KRW 154.8bn(Major Subsidiaries) 2,412 2,300 2,144 718 907 824 796 155 2023 2024 2025 1H26 KT Major Subsidiaries 3,319 3,124 2,940 873
1 2Q26 Highlights 2 Financial Highlights 3 Business Overview 4 Appendix Contents
10 KT - Wireless • Service revenue down -1 .8% YoY, reflecting the impact of the customer appreciation program’26.02~07 and subs. churn during the penalty waiver period (5G penetration : 83.2%) • Enhancing profitability through personalized AX and stronger digital distribution channels 1 (Unit: KRW bn) 2Q25 1Q26 2Q26 QoQ YoY Wireless 1,781.7 1,757.4 1,749.7 -0.4% -1.8% Wireless Service 1,704.8 1,683.0 1,674.9 -0.5% -1.8% Interconnection 76.9 74.3 74.8 0.7% -2.7% Wireless Subscribers (Unit: Thousands) K-IFRS / Separate 26,445 27,491 28,328 28,985 29,162 7,649 8,057 8,368 8,749 9,048 6,180 6,574 6,974 7,019 7,059 2,795 2,649 2,487 2,324 2,247 10,866 11,048 11,156 11,070 11,147 2Q25 3Q25 4Q25 1Q26 2Q26 Handset(5G) Handset(exc. 5G) 2nd device & IoT MVNO
11 KT - Fixed Line • Broadband : +1.1% YoY rev. growth, due to increase in GiGA subs. and value-added services • Media : -0.5% YoY rev. decline, as weaker advertising and PPV* revenue offset IPTV subs. 2 (Unit: Thousands) Broadband Subscribers (Unit: Thousands) IPTV Subscribers 2Q25 1Q26 2Q26 QoQ YoY Fixed Line 1,334.5 1,321.6 1,314.8 -0.5% -1.5% Broadband 631.4 640.2 638.0 -0.3% 1.1% Media 526.9 526.0 524.5 -0.3% -0.5% Home Telephony 176.2 155.4 152.3 -2.0% -13.6% Subscribers GiGA (%) (Unit: KRW bn) K-IFRS / Separate 10,073 10,135 10,170 10,188 10,231 2Q25 3Q25 4Q25 1Q26 2Q26 69.7% 70.0% 70.1% 70.1% 70.2% 9,490 9,520 9,533 9,520 2Q25 3Q25 4Q25 1Q26 2Q26 9,544 *PPV : Pay-Per-View
12 KT - B2B Services3 (Unit: KRW bn) B2B Services Revenue Revenue of AX biz. 2Q25 1Q26 2Q26 QoQ YoY B2B Service 922.7 872.4 901.1 3.3% -2.3% (Unit: KRW bn) (Unit: KRW bn) K-IFRS / Separate • Rev. -2.3% YoY due to the prior-year base(Design&Build), while achieving QoQ turnaround driven by balanced growth in AX and corporate telecom business YoY -2.3% 922.7 932.7 858.6 872.4 901.1 2Q25 3Q25 4Q25 1Q26 2Q26 QoQ +3.3% 2Q25 3Q25 4Q25 1Q26 2Q26 kt cloud KT AX biz. 300.7 358.1 369.6 350.8 367.8 ※ KT AX biz. : Subsea cable, AICC, AI/IT service, etc. YoY +22.3% QoQ +4.8%
13 Major Subsidiaries4 • kt cloud rev. +19.8% YoY by increased DC Gasan,‘25.11 utilization and Design & Build business expansion • kt estate rev. +80.1% YoY supported by growth in hotel business and new development* project Revenue of Major Subsidiaries (consolidated) 2Q25 1Q26 2Q26 QoQ YoY BC Card 909.8 873.7 930.7 6.5% 2.3% kt skylife 247.2 239.0 249.9 4.6% 1.1% Content Subsidiaries* 143.5 146.4 166.4 13.7% 16.0% kt cloud 221.5 250.1 265.4 6.1% 19.8% kt estate 160.4 237.4 288.9 21.7% 80.1% *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 546.1 197.3 132.1 168.8 259.3 2Q25 3Q25 4Q25 1Q26 2Q26
1 2Q26 Highlights 2 Financial Highlights 3 Business Overview 4 Appendix Contents
15 K-IFRS Income Statement1 (Unit: KRW bn) Consolidated 2Q25 3Q25 4Q25 1Q26 2Q26 KT Separate 2Q25 3Q25 4Q25 1Q26 2Q26 Operating revenue 7,427.4 7,126.7 6,845.0 6,778.4 6,679.9 Operating revenue 4,772.8 5,109.0 4,760.2 4,834.6 4,523.5 Service revenue 5,817.8 5,920.8 5,949.4 5.733.4 5,922.9 Service revenue 4,131.7 4,179.9 4,122.5 4,069.1 4,079.3 Sale of goods 1,609.6 1,205.9 895.6 1.045.0 757.0 Handset revenue 641.1 929.1 637.7 765.5 444.2 Operating expense 6,412.6 6,588.6 6,617.7 6.295.7 6,031.6 Operating expense 4.304.1 4,768.1 4,664.9 4,520.7 4,134.5 Cost of Service 5,129.9 5,304.6 5,548.9 5.165.6 5,235.8 Cost of Service 3.677.4 3,837.8 4,042.6 3,721.5 3,719.3 Labor cost 1,119.4 1,167.6 1,184.0 1.173.9 1,173.9 Labor cost 463.0 492.8 431.9 497.0 494.0 General expense 2,639.7 2,725.9 2,788.9 2.592.7 2,596.0 General expense 1.856.0 1,956.7 2,052.3 1,866.7 1,855.4 Cost of service 755.8 778.5 701.2 746.3 813.9 Cost of service 690.6 707.4 656.5 658.3 668.0 Selling expense 615.1 632.6 874.8 652.7 651.9 Selling expense 667.8 680.9 901.9 699.5 701.8 Cost of Goods sold 1,282.6 1,283.9 1,068.7 1.130.2 795.8 Cost of Devices sold 626.7 930.3 622.4 799.2 415.2 Operating income 1,014.8 538.2 227.3 482.7 648.3 Operating income 468.7 340.9 95.3 313.9 389.0 N-OP income (loss) -39.9 55.3 -89.5 29.8 -2.2 N-OP income (loss) -46.2 39.3 -4.3 101.4 -9.1 N-OP income 351.4 132.7 264.5 365.9 254.0 N-OP income 317.6 72.6 217.8 378.9 227.7 N-OP expense 407.1 74.2 367.7 342.9 284.4 N-OP expense 363.9 33.2 222.2 277.5 236.7 Equity Method (G/L) 15.7 -3.3 13.7 6.9 28.3 Income bf tax 974.9 593.4 137.9 512.5 646.1 Income bf tax 422.5 380.2 90.9 415.3 380.0 Income tax 241.6 148.2 46.5 124.2 165.5 Income tax 64.5 90.5 42.2 75.3 94.7 Net income 733.3 445.3 91.5 388.3 480.6 Net income 358.0 289.7 48.7 340.0 285.3 NI contribution to KT 687.9 391.5 111.7 352.2 440.1 EBITDA 1,990.7 1,503.9 1,197.3 1.440.0 1,589.4 EBITDA EBITDA Margin 1.281.7 1,153.8 900.2 1,110.6 1,171.7 EBITDA Margin 26.8% 21.1% 17.5% 21.2% 23.8% 26.9% 22.6% 18.9% 23.0% 25.9%
16 K-IFRS Balance Sheet2 Consolidated 2Q25 3Q25 4Q25 1Q26 2Q26 KT Separate 2Q25 3Q25 4Q25 1Q26 2Q26 Assets 42,193.3 43,012.8 42,948.6 43,510.0 44,685.0 Assets 29,008.7 29,049.2 29,677.6 30,116.3 30,444.5 Current assets 14,385.4 15,123.6 13,977.5 14,527.1 14,821.6 Current assets 7,022.2 7,127.8 7,212.5 7,521.4 7,181.9 Cash & cash equivalents 3,794.4 3,890.3 3,507.0 2,860.1 3,049.8 Cash & cash equi. 1,419.9 1,095.5 1,585.9 1,268.9 1,210.4 Trade & other receivables 3,955.6 4,215.7 3,963.7 4,192.1 4,109.3 Trade & other rec. 2,958.1 3,186.5 2,915.7 3,220.9 2,906.4 Inventories 443.9 443.8 416.1 537.5 625.7 Inventories 166.7 155.2 94.3 173.4 270.7 Other current asset 6,191.5 6,573.7 6,090.7 6,937.4 7,036.9 Other current asset 2,477.5 2,690.7 2,616.6 2,858.2 2,794.5 - Prepaid_Contract cost 1,304.0 1,450.7 1,484.6 1,445.5 1,416.4 - Prepaid_Contract cost 1,389.3 1,549.9 1,583.8 1,557.2 1,526.1 - Contract assets 744.2 805.2 764.9 754.8 735.6 - Contract assets 667.8 707.8 630.0 613.4 604.1 Non-current assets 27,808.0 27,889.2 28,971.0 28,982.9 29,863.4 Non-current assets 21,986.5 21,921.4 22,465.1 22,594.9 23,262.6 Trade & other rec 378.3 422.1 463.1 453.5 492.6 Trade & other rec 278.9 319.9 362.9 352.8 395.3 Tangible assets 14,226.4 14,121.1 14,258.5 13,862.1 13,695.9 Tangible assets 10,913.7 10,748.7 10,932.3 10,563.9 10,402.1 Other current assets 13,203.3 13,346.0 14,249.5 14,667.3 15,674.9 Other current assets 9,941.2 10,028.4 10,357.6 10,868.1 11,685.4 - Prepaid_Contract cost 631.5 629.2 614.5 679.4 666.6 - Prepaid_Contract cost 625.6 624.1 595.2 658.5 636.4 - Contract assets 146.1 173.2 261.4 302.8 279.9 - Contract assets 116.1 140.1 226.8 258.7 257.7 Liabilities 23,316.2 23,752.8 23,490.6 23,516.4 24,253.7 Liabilities 14,165.6 13,986.4 14,451.0 14,361.4 14,444.4 Current liabilities 12,123.5 12,223.6 11,692.8 12,642.1 13,162.5 Current liabilities 7,074.7 6,539.8 6,862.3 7,478.4 7,411.2 Trade & other payables 7,077.7 7,770.5 6,868.7 6,933.6 6,781.3 Trade & other payables 4,459.9 4,545.4 4,592.5 4,515.9 4,240.6 Short-term borrowings 2,934.3 2,454.1 2,499.5 3,531.8 4,179.5 Short-term borrowings 1,895.4 1,310.4 1,323.8 2,018.1 2,279.7 Others 2,111.4 1,999.0 2,324.5 2,176.8 2,201.7 Others 719.5 684.1 946.0 944.4 890.9 - Contract liabilities 330.3 228.1 207.8 205.6 183.0 - Contract liabilities 204.8 198.3 185.7 186.8 162.8 Non-current liabilities 11,192.7 11,529.2 11,797.8 10,874.3 11,091.2 Non-current liabilities 7,090.9 7,446.6 7,588.7 6,883.0 7,033.1 Trade & other payables 383.7 386.6 328.3 295.6 613.5 Trade & other payables 666.8 649.8 622.1 544.2 838.2 Long-term borrowings 7,815.9 8,078.2 8,286.0 7,304.8 7,091.3 Long-term borrowings 5,184.4 5,499.5 5,744.9 5,006.6 4,725.0 Others 2,993.2 3,064.4 3,183.5 3,273.9 3,386.5 Others 1,239.7 1,297.2 1,221.7 1,332.2 1,470.0 - Contract liabilities 36.6 33.4 31.9 33.5 29.0 - Contract liabilities 28.0 27.3 24.8 29.0 25.0 Equity 18,877.1 19,259.9 19,458.0 19,993.6 20,431.3 Equity 14,843.1 15,062.8 15,226.6 15,754.9 16,000.1 Retained earnings 14,739.9 14,986.2 14,964.3 15,174.5 15,470.0 Retained earnings 12,156.4 12,301.6 12,219.9 12,417.4 12,555.8 (Unit: KRW bn)
17 Subscribers3 Wireless Subscribers 2Q 25 3Q 25 4Q 25 1Q 26 2Q 26 QoQ YoY Total 27,491 28,328 28,985 29,162 29,501 1.2% 7.3% - MNO 19,842 20,271 20,618 20,413 20,453 0.2% 3.1% - MVNO 7,649 8,057 8,368 8,749 9,048 3.4% 18.3% 5G Handset1) 10,866 11,048 11,156 11,070 11,147 0.7% 2.6% Churn rate2) 1.0% 1.2% 1.0% 1.7% 0.9% -0.8%p -0.1%p ARPU (KRW)3) 35,236 35,295 35,335 34,781 34,412 -1.1% -2.3% 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 2Q 25 3Q 25 4Q 25 1Q 26 2Q 26 QoQ YoY Telephony 11,174 11,039 10,890 10,739 10,603 -1.3% -5.1% - PSTN 7,988 7,851 7,716 7,578 7,447 -1.7% -6.8% - VoIP 3,186 3,188 3,174 3,161 3,156 -0.2% -1.0% Broadband 10,073 10,135 10,170 10,188 10,231 0.4% 1.6% IPTV (GTV+GTS) 9,490 9,520 9,533 9,520 9,544 0.2% 0.6% (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 2H 2025 is 9,123,463 (6-month average)
