Slide 1: 2026 Second Quarter Results
KTG&G KT&G 2026 Second Quarter Results Investor Relations
Slide 2: Disclaimer
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
Slide 3: Dividend Future Plans
Dividend Future Plans KRW 2,000 (+KRW 600, 43%↑ vs. PY) per share DPS increase Aug 21 (transaction required by August 19) * (Timing and scale to be confirmed in consideration of Sept 7 (To be paid within 1 month from board resolution) share price trend going forward) * TBC 15.7% 14.0% 12.0% 0.0% 1)
Slide 4: Overall 4 quarters of double-digit operating profit growth
Overall 4 quarters of double-digit operating profit growth, 2 years of record-high H1 revenue (KRW 3.4 trn) 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 Successful market penetration of 「lil A
Slide 5: Revenue and Operating Profit
Revenue Operating Profit 2025 2026 2025 2026
Slide 6: 2Q 2026 Performance Highlights
1. 2Q 2026 Performance Highlights Revenue (KRW bn) Operating Profit (KRW bn) Net Income KRW 1.70 trn KRW 414.5 bn KRW 362.1 bn YoY +9.9% YoY +18.5% YoY +152.3% EPS KRW 3,509 YoY +164.2% EBITDA / EBITDA Margin KRW 494.4 bn YoY +17.4% 29.1% YoY +1.9%p
Slide 7: Tobacco Business
1. 2Q 2026 Performance Highlights Tobacco Business (unit : KRW bn) 414.5
Slide 8: Revenue, Operating Profit and Share of International Sales
2. Performance by Business Revenue (KRW bn) Operating Profit (KRW bn) Share of International Sales (volume) 2,426 1,961 9,704 8,773 2Q '25 2Q '26 2Q '25 2Q '26 2023 2024 2025 2026.1H
Slide 9: Revenue, Volume and Volume Share per Region
2. Performance by Business Revenue (KRW bn) Volume (bn sticks) Volume Share per Region 25. 25. 9% 8% 31. 3% 43. 5% 42. 8% 30. 6%
Slide 10: Revenue, KT&G Share of Market and Volume
2. Performance by Business Revenue (KRW bn) KT&G SoM1) Total Market / KT&G Volume1) (bn sticks) 67.9% 67.3% 66.7% 66.0% 65.4% 64.6% 1) Source : Korea Tobacco Association data based on shipment volumes to general stores, centralized logistics, specialized channels, etc.
Slide 11: Revenue and Stick Volume
2. Performance by Business Revenue (KRW bn) Stick Volume (bn sticks) 14.78 760.0 560 1,666 1,401
Slide 12: Korea Business and International Business
2. Performance by Business Korea Business International Business (bn sticks) 1) Convenience store offtake data
Slide 13: Revenue and Operating Profit
2. Performance by Business Revenue (KRW bn) Operating Profit (KRW bn) as Korea Family Month with promotions and individual brand campaigns drove sales 1616 1,742.0 99 62 590 496 2Q '25 2Q '26 2Q '25 2Q '26
Slide 14: Korea Revenue by Channel, International Revenue by Market
2. Performance by Business Korea Revenue by Channel (KRW bn) International Revenue by Market (KRW bn) promotions linked to Family Month and the high oil price relief subsidy as well as brand campaigns led to stronger demand across all channels 203 256 150 636 563 135 96 90 375 359 344 271 528 438 2Q
Slide 15: Revenue and Operating Profit
2. Performance by Business Revenue (KRW bn) Operating Profit (KRW bn) • Increased operating profit (YoY +15.8%) with higher revenue from as construction progresses development projects 0.3 3 17.0 170 10.9 109 141.0 16.7 167 116.1 1,410 1,161 2Q '25 2Q '26 2Q '25 2Q '26
Slide 16: Q&A
Q&A
Slide 17: Quarterly volume, revenue and operating profit data
( units : bn sticks, KRW bn ) 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 2
Slide 18: Consolidated and Standalone Balance Sheet
※ The results below are still under audit by the outside auditors and may be subject to change. Consolidated Standalone ( unit : KRW bn ) 2Q '26 YE‘25 ( unit : KRW bn ) 2Q '26 YE‘25 Current assets(a) 7,611.8 7,026.2 Current assets(a) 4,684.1 4,048.1 Cash(*) 1,639.1 1,278.2 Cash(*) 516.1 264.8 Trade
Slide 19: Consolidated and Standalone Income Statement
※ The results below are still under audit by the outside auditors and may be subject to change. Consolidated 1) Standalone ( unit : KRW bn ) 2Q '26 2Q '25 ( unit : KRW bn ) 2Q '26 2Q '25 Revenue 1,701.6 1,547.9 Revenue 1,155.0 1,046.4 Cost of goods sold 839.1 795.6 Cost of goods sold 572.3 560.1 Gro
Slide 20: Consolidated and Standalone Cash Flow
※ The results below are still under audit by the outside auditors and may be subject to change. Consolidated Standalone ( unit : KRW bn ) 2Q '26 2Q ’25 ( unit : KRW bn ) 2Q '26 2Q ’25 Cash and cash equivalents at April 1 913.5 1,136.0 Cash and cash equivalents at April 1 134.2 588.8 Cash flows from
Slide 21: Balance Sheet and Income Statement
※ The results below are still under audit by the outside auditors and may be subject to change. Balance Sheet Income Statement ( unit : KRW bn ) 2Q ’26 YE‘25 ( unit : KRW bn ) 2Q '26 2Q '25 Current assets 1,809.3 1,841.9 Revenue 193.9 202.7 Inventories 1,287.9 1,361.0 Cash and cash equivalents 136.0
Slide 22: Thank you
Thank you