Slides
Page 2
This presentation is prepared and provided for the convenience of investors and shareholders prior to the completion of the external audit. Therefore, certain contents are subject to change during the auditing process. The financial information in this presentation is based on K-IFRS standards. This presentation and related discussions contain certain forward -looking statements related to expected future business, financial performance and/or the industry forecasts which are uncertain. Therefore, the recipients of this presentation shall be aware of that the forward -looking statements set forth herein may not correspond to the actual results.
Page 3
Dividend Future Plans (+KRW 600, 43%↑ vs. PY) Aug 21 (transaction required by August 19) Sept 7 (To be paid within 1 month from board resolution) DPS increase (Timing and scale to be confirmed in consideration of share price trend going forward) 15.7% 14.0% 12.0% 0.0% KRW 2,000 per share * * TBC 1) Treasury shares cancelled in full in April ‘26
Page 4
Int’l CC Rapid growth in quantity and quality amid uncertainties in the macro-environment, as triple growth (volume-revenue-OP) continues for 9 quarters Overall 4 quarters of double-digit operating profit growth, 2 years of record-high H1 revenue(KRW3.4 trn) NGP Successful market penetration of 「lil Aible」 boosted brand competitiveness and profitability as stronger contribution from high-ASP sticks led to profit growth outpacing revenue growth HFF Revenue and profit growth driven by core brands and high-margin channel promotions, Entered the global market for materials and beverages, accelerating the 「Global Nutrition Business」
Page 5
Revenue Operating Profit 2025 2026 2025 2026
Page 6
YoY +18.5%YoY +9.9% 29.1% YoY +1.9%p Revenue (KRW bn) Operating Profit (KRW bn) EPS EBITDA / EBITDA Margin Net Income KRW 1.70 trn KRW 414.5 bn KRW 362.1 bn YoY +152.3% KRW 3,509 YoY +164.2% 1. 2Q 2026 Performance Highlights KRW 494.4 bn YoY +17.4%
Page 7
Tobacco Business 414.5 1. 2Q 2026 Performance Highlights (unit : KRW bn)
Page 8
2. Performance by Business 8,773 9,704 1,961 2,426 2Q '25 2Q '26 2Q '25 2Q '26 2023 2024 2025 2026.1H Revenue (KRW bn) Operating Profit (KRW bn) Share of International Sales (volume)
Page 9
42. 8% 30. 6% 31. 3% 43. 5% 25. 9% 25. 8% Revenue (KRW bn) Volume (bn sticks) Volume Share per Region 2. Performance by Business
Page 10
64.6% 65.4% 66.0% 66.7% 67.3% 67.9% Total Market / KT&G Volume1) (bn sticks)Revenue (KRW bn) KT&G SoM1) 1) Source : Korea Tobacco Association data based on shipment volumes to general stores, centralized logistics, specialized channels, etc. 2. Performance by Business
Page 11
1,401 1,666 560 760.0 14.78 Revenue (KRW bn) Stick Volume (bn sticks) 2. Performance by Business
Page 12
1) Convenience store offtake data Korea Business International Business (bn sticks) 2. Performance by Business
Page 13
590 496 1616 1,742.0 2Q '25 2Q '26 62 99 2Q '25 2Q '26 as Korea Family Month promotions and individual brand campaigns drove sales with Revenue (KRW bn) Operating Profit (KRW bn) 2. Performance by Business
Page 14
promotions linked to Family Month and the high oil price relief subsidy as well as brand campaigns led to stronger demand across all channels 344 271 96 90 150 135 2Q '25 2Q '26 438 528 359 375 563 636 256 203 2Q '25 2Q '26 Korea Revenue by Channel (KRW bn) International Revenue by Market (KRW bn) 2. Performance by Business
Page 15
1,161 1,410 167 170 109 3 2Q '25 2Q '26 as construction progresses • Increased operating profit (YoY +15.8%) with higher revenue from development projects 116.1 16.7 10.9 2Q '25 2Q '26 0.3 17.0 141.0 Revenue (KRW bn) Operating Profit (KRW bn) 2. Performance by Business
Page 17
1Q '25 2Q '25 3Q '25 4Q '25 FY ‘25 1Q ‘26 2Q ‘26 Volume 27.84 30.24 33.15 26.53 117.76 29.86 31.73 NGP 3.43 3.74 4.04 3.57 14.78 3.52 4.07 Korea 1.53 1.53 1.82 1.51 6.39 1.60 1.85 international 1.90 2.21 2.22 2.06 8.39 1.92 2.22 CC 24.41 26.50 29.11 22.96 102.98 26.34 27.66 Korea 8.74 9.80 10.69 8.53 37.76 8.33 9.74 international 15.67 16.70 18.42 14.43 65.22 18.01 17.92 Revenue 988.1 1,090.5 1,232.3 1,056.3 4,367.2 1,155.9 1,218.5 NGP 159.0 196.1 279.1 255.9 890.1 241.0 242.7 Korea 138.5 140.1 168.3 140.4 587.3 140.4 166.6 international 20.5 56.0 110.8 115.5 302.8 100.6 76.1 CC 822.7 877.3 970.8 798.9 3,469.6 912.5 970.5 Korea 373.6 408.3 446.6 363.6 1,592.1 352.9 412.8 international 449.1 468.9 524.2 435.3 1,877.5 559.6 557.7 Semi-products 6.4 17.1 (17.5) 1.5 7.5 2.4 5.3 Operating Profit 252.9 321.9 371.8 204.7 1,151.2 321.6 382.5 OP Margin 25.6% 29.5% 30.2% 19.4% 26.4% 27.8% 31.4% Revenue 314.4 220.6 359.8 242.2 1,137.0 332.6 223.8 Korea 244.7 161.6 304.7 173.9 884.9 265.3 174.2 international 69.7 59.0 55.1 68.3 252.1 67.3 49.6 Operating Profit 18.2 6.2 71.5 7.4 103.3 27.9 10.0 OP Margin 5.8% 2.8% 19.9% 3.1% 9.1% 8.4% 4.5% Revenue 100.4 143.7 146.1 322.5 712.7 116.9 158.3 Development 72.1 116.1 117.9 116.3 422.4 99.4 141.0 Rental 16.7 16.7 17.6 16.9 68.0 17.2 17.0 Subsidiaries 11.6 10.9 10.6 189.3 222.3 0.3 0.3 Operating Profit 10.4 17.7 20.7 32.2 80.9 14.0 20.5 OP Margin 10.4% 12.3% 14.2% 10.0% 11.4% 12.0% 13.0% Revenue 88.3 93.1 88.7 92.8 362.8 98.1 101.0 Pharmaceutical 63.9 62.5 60.9 66.8 254.1 63.6 61.6 Cosmetics 24.4 30.6 27.8 26.0 108.7 34.5 39.4 Operating Profit 4.1 4.1 1.4 (1.4) 8.3 1.0 1.5 OP Margin 4.6% 4.4% 1.6% -1.5% 2.3% 1.0% 1.5% ( units : bn sticks, KRW bn ) Tobacco Health- Functional Food Real Estate Others
Page 18
2Q '26 YE‘25 Current assets(a) 7,611.8 7,026.2 Cash(*) 1,639.1 1,278.2 Trade and other receivables 2,048.8 1,691.4 Inventories 3,100.1 3,284.8 Others 823.8 771.8 Non-current assets 7,424.2 7,162.9 Property, plant, and equipment 3,033.4 2,823.0 Investment property 656.9 665.0 Others 3,733.9 3,674.9 Total assets 15,036.0 14,189.1 Current liabilities(b) 3,732.7 3,236.8 Non-current liabilities 1,580.5 1,616.1 Total liabilities(c) 5,313.2 4,852.9 Total equity(d) 9,722.8 9,336.2 Current ratio(a/b) 203.9% 217.1% Debt-to-equity ratio(c/d) 54.6% 52.0% 2Q '26 YE‘25 Current assets(a) 4,684.1 4,048.1 Cash(*) 516.1 264.8 Trade and other receivables 2,424.0 2,043.8 Inventories 1,301.0 1,359.0 Others 443.0 380.5 Non-current assets 7,245.1 7,316.2 Property, plant, and equipment 1,435.4 1,392.8 Investment property 504.0 556.1 Others 5,305.7 5,367.3 Total assets 11,929.2 11,364.3 Current liabilities(b) 3,029.3 2,633.5 Non-current liabilities 1,083.4 1,182.5 Total liabilities(c) 4,112.7 3,816.0 Total equity(d) 7,816.5 7,548.3 Current ratio(a/b) 154.6% 153.7% Debt-to-equity ratio(c/d) 52.6% 50.6% Consolidated Standalone ※ The results below are still under audit by the outside auditors and may be subject to change. ( unit : KRW bn ) ( unit : KRW bn ) (*) Cash and cash equivalents, current other financial assets, current fair value through profit or loss
Page 19
2Q '26 2Q '25 Revenue 1,701.6 1,547.9 Cost of goods sold 839.1 795.6 Gross profit 862.5 752.3 Selling, general and administrative expense 448.0 402.5 Operating profit 414.5 349.8 Other income/expenses 44.6 (175.4) Financial gain/loss 13.3 11.4 Net income from continuing operations 362.1 145.0 Net income from discontinued operations 0 -1.5 Net income 362.1 143.5 Gross profit margin 50.7% 48.6% Operating profit margin 24.4% 22.6% Net income margin 21.3% 9.3% 2Q '26 2Q '25 Revenue 1,155.0 1,046.4 Cost of goods sold 572.3 560.1 Gross profit 582.7 486.3 Selling, general and administrative expense 258.1 198.8 Operating profit 324.6 287.5 Other income/expenses 112.5 (166.3) Financial gain/loss 21.3 69.6 Net income 347.8 153.6 Gross profit margin 50.4% 46.5% Operating profit margin 28.1% 27.5% Net income margin 30.1% 14.7% ※ The results below are still under audit by the outside auditors and may be subject to change. Consolidated 1) Standalone ( unit : KRW bn ) ( unit : KRW bn ) 1) 1) Due to the temporary suspension of US cigarette sales in ’21. 4Q, the financial items of the US cigarette business (US subsidiary) has been segregated from net income from continuing operations and reclassified as a separate account of ‘net income from discontinued operations’.
Page 20
2Q '26 2Q ’25 Cash and cash equivalents at April 1 913.5 1,136.0 Cash flows from operating activities 765.5 388.1 Cash generated from operations 1,003.3 596.5 Income tax paid (237.8) (208.3) Cash flows from investing activities (256.9) (255.0) Acquisition of property, plant and equipment (217.1) (348.2) Cash flows from financing activities (430.8) (132.4) Net increase in cash and cash equivalents 77.8 0.7 Effect of exchange rate fluctuation 91.0 2.8 Cash and cash equivalents at June 30 1,082.3 1,139.5 2Q '26 2Q ’25 Cash and cash equivalents at April 1 134.2 588.8 Cash flows from operating activities 438.8 337.3 Cash generated from operations 633.8 509.4 Income tax paid (195.0) (172.1) Cash flows from investing activities 28.2 (282.4) Acquisition of property, plant and equipment (68.6) (97.2) Cash flows from financing activities (419.0) (150.0) Net increase in cash and cash equivalents 48.0 (95.1) Effect of exchange rate fluctuation 16.3 (28.8) Cash and cash equivalents at June 30 198.5 464.9 ※ The results below are still under audit by the outside auditors and may be subject to change. Consolidated Standalone ( unit : KRW bn ) ( unit : KRW bn )
Page 21
2Q ’26 YE‘25 Current assets 1,809.3 1,841.9 Inventories 1,287.9 1,361.0 Cash and cash equivalents 136.0 50.9 Others 385.4 430.0 Non-current assets 780.0 753.2 Property, plant and equipment 320.3 320.8 Intangible assets 25.2 25.0 Others 434.5 407.4 Total assets 2,589.3 2,595.1 Current liabilities 138.3 127.9 Non-current liabilities 104.2 100.0 Total liabilities 244.7 227.9 Total equity 2,344.6 2,367.2 2Q '26 2Q '25 Revenue 193.9 202.7 Cost of goods sold 84.4 99.1 Gross profit 109.5 103.6 Selling, general and administrative expense 99.8 98.5 Operating profit 9.7 5.1 Other income/expense -1.0 -7.8 Financial gain/loss 2.4 2.7 Net income 10.4 0.2 ※ The results below are still under audit by the outside auditors and may be subject to change. Income StatementBalance Sheet ( unit : KRW bn ) ( unit : KRW bn )