1. 0 2 4 6 8 10 12 14 16 18 2006 2007 2008 2009 2010 2011 2012 2013 KT’s IPTV Subscribers (Q3 2014) November NETMANIAS ONE-SHOT 14, 2014 © 2014 Netmanias • www.netmanias.com Source: KT n Pay TV subscribers in Korea n KT’s Broadband Subscribers vs. IPTV Subscribers (Q1 2005 – Q3 2014) 0.0 500.0 1,000.0 1,500.0 2,000.0 1Q 10 2Q 10 3Q 10 4Q 10 1Q 11 2Q 11 3Q 11 4Q 11 1Q 12 2Q 12 3Q 12 4Q 12 1Q 13 2Q 13 3Q 13 4Q 13 1Q 14 2Q 14 3Q 14 0.0% 10.0% 20.0% 30.0% 40.0% 50.0% 60.0% 70.0% 80.0% 90.0% 0 1 2 3 4 5 6 7 8 9 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2006 2007 2008 2009 2010 2011 2012 2013 2014 Subscribers [Million] IPTV Subscription Rate KT’s Broadband Subscribers = 8.04M KT’s IPTV Subscribers = 5.63M IPTV Subscription Rate = 69.5% n KT’s Quarterly Revenue Overview Mobile: $1.9B Wireline (Telephony, Broadband, Lease Line): $1.4B Media(IPTV)/Contents: $0.4B BC Card/KT Rental: $1.1B Others: $0.4B Merchandise (Handset): $0.8B As of Q3 2014, KT has 8 million Internet subscribers and 5.63 million IPTV subscribers, with 69.5% of IPTV subscription rate (% of IPTV out of total Internet subscription). Followed by SK (55.1%) and LG U+ (62.3%). Cable: 14.8M IPTV: 8.61M Satellite: 4.18M n KT’s IPTV subscriber growth (Q1 2005 – Q3 2014) 0 1 2 3 4 5 6 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2006 2007 2008 2009 2010 2011 2012 2013 2014 KT: 5.63M (55.7%) SK: 2.61M (25.8%) LG U+: 1.88M (18.5%) Subscribers [Million] Subscribers [Million] revenue declining making up for the declined revenue No. 1 reason for soaring IPTV subscription in Korea Q3 2014: $6B Steady growth Q3 2014: 10.1M KRW Billion