Q2 2026 KT&G Corp Earnings Call

August 6, 2026

Aaron Lee: Ladies and gentlemen, thank you for attending today. We will now begin the conference call for KT&G's 2026 Q2 earnings report. After the presentation from KT&G, there will be a Q&A session with the participants to the call. If you wish to participate with a question, please press star and the number one. We will now begin with KT&G's presentation for 2026 Q2 earnings. Ladies and gentlemen, I'm Aaron Lee, Head of Investor Relations at KT&G. Thank you for attending KT&G's 2026 Q2 earnings report. Today's presentation will be provided in English in simultaneous interpretation, and the Q&A session in consecutive interpretation. The materials can be found via the live webcast screen or downloaded from the company website. Please allow me to introduce the management team in attendance today.

Operator: Ladies and gentlemen, thank you for attending today. We will now begin the conference call for KT&G's 2026 Q2 earnings report. After the presentation from KT&G, there will be a Q&A session with the participants to the call. If you wish to participate with a question, please press star and the number one. We will now begin with KT&G's presentation for 2026 Q2 earnings.

Speaker #1: Ladies and gentlemen, thank you for attending today. We will now begin the conference call for KT&G's Q2 2026 earnings report. After the presentation from KT&G, there will be a Q&A session with the participants on the call.

Speaker #1: If you wish to participate with a question, please press star followed by the number 1. We will now begin with KT&G's presentation for the second quarter 2026 earnings.

Speaker #1: Ladies and gentlemen, I'm Aaron Lee, Head of Investor Relations at KT&G. Thank you for attending KT&G's 2026 second quarter earnings report. Today's presentation will be provided in English with simultaneous interpretation, and the Q&A session will have consecutive interpretation.

Aaron Lee: Ladies and gentlemen, I'm Aaron Lee, Head of Investor Relations at KT&G. Thank you for attending KT&G's 2026 Q2 earnings report. Today's presentation will be provided in English in simultaneous interpretation, and the Q&A session in consecutive interpretation. The materials can be found via the live webcast screen or downloaded from the company website. Please allow me to introduce the management team in attendance today.

Speaker #1: The materials can be found via the live webcast screen or downloaded from the company website. Please allow me to introduce the management team in attendance today.

Speaker #1: With us, we have: Mr. Sanghak Lee, Chief Finance and Operating Officer; Mr. Yongchan Yoon, Chief Strategy Officer; Mr. Changku Ho, Chief Marketing Officer; Mr. Minseok Kwon, Chief of Global Business; Mr. Dongpil Kim, Chief of NGP; Mr. Sangjun Woo, Chief of Real Estate; Mr. Yongbeom Kim, Head of Finance Office; and Mr. Seungkyu Han, Chief of Future Strategy at KGC.

Aaron Lee: With us we have Mr. Sang Hak Lee, Chief Finance and Operating Officer, Mr. Yoon Young-chan, Chief Strategy Officer, Mr. Chang Gu Huh, Chief Marketing Officer, Mr. Min Suk Kwon, Chief of Global Business, Mr. Dong Pil Kim, Chief of NGP, Mr. Sang Jun Woo, Chief of Real Estate, Mr. Yong Beom Kim, Head of Finance Office, and Mr. Seung Han, Chief of Future Strategy at KGC. Please be advised that the earnings we are about to present today have yet to be audited by the outside auditor, therefore, are subject to change in the audit process, and any forward-looking information discussed in the call today may differ from the actual results to be reported in the future. With that, we will begin the 2026 Q2 earnings report. Today's presentation consists of key items from our consolidated results and earnings for each business segment.

Speaker #1: Please be advised that the earnings we are about to present today have yet to be audited by the outside auditor; therefore, any changes during the audit process and any forward-looking information discussed on the call today may differ from the actual results to be reported in the future.

Speaker #1: With that, we will begin the 2026 second quarter earnings report. Today's presentation consists of key items from our consolidated results and earnings for each business segment.

Speaker #1: After the presentation, we will proceed to Q&A with the management team in attendance. First, please allow me to invite Mr. Sanghak Lee, our COO and CFO, to share with you updates on our shareholder returns, as well as the results that the board today highlights from our 2026 Q2 results and updates on our annual guidance.

Aaron Lee: After the presentation, we will proceed to Q&A with the management team in attendance. First, please allow me to invite Mr. Sang Hak Lee, our COO and CFO, to share with you updates on our shareholder returns as resolved at the Board today, highlights of our 2026 Q2 results, and updates on our annual guidance. Ladies and gentlemen, this is Sang Hak Lee, COO and CFO of KT&G. Thank you for attending KT&G's 2026 Q2 earnings report. First, starting on our shareholder return. Earlier today, our Board of Directors resolved for the execution of the 2026 interim dividends. The Board has decided to raise DPS by KRW 600 to KRW 2,000 per share. The record date for this interim dividend will be 21 August, and the dividends will be paid out on 7 September. Details will be uploaded on our company website on a later date.

Speaker #1: Ladies and gentlemen, this is Sanghak Lee, COO and CFO of KT&G. Thank you for attending KT&G's Q2 2026 earnings report. First, starting on our shareholder return.

Sang-Hak Lee: Ladies and gentlemen, this is Sang Hak Lee, COO and CFO of KT&G. Thank you for attending KT&G's 2026 Q2 earnings report. First, starting on our shareholder return. Earlier today, our Board of Directors resolved for the execution of the 2026 interim dividends. The Board has decided to raise DPS by KRW 600 to KRW 2,000 per share. The record date for this interim dividend will be 21 August, and the dividends will be paid out on 7 September. Details will be uploaded on our company website on a later date.

Speaker #1: Earlier today, our Board of Directors resolved for the execution of the 2026 interim dividends. The Board has decided to raise DPS by $601, to $2,001 per share.

Speaker #1: The record date for this interim dividend will be August 21, and the dividends will be paid out on September 7. Details will be uploaded on our company website at a later date.

Speaker #1: Based on our profit growth and capacity for shareholder returns, we have increased the amount and the portion of our interim dividend, and are assessing the possibility of increasing the DPS for our year-end dividend as well.

Aaron Lee: Based on our profit growth and capacity for shareholder returns, we have increased the amount and the portion of our interim dividend and are assessing the possibility of increasing the DPS for our year-end dividend as well. We will proceed with share buyback and cancellation in the H2 as planned, the scale and timing of which will be decided based on comprehensive assessment of the market situation and our capital policy. We are also preparing for a new round of mid to long-term shareholder return plan to transfer our elevated corporate value into shareholder value, on which our CEO will communicate with the market in the Q4. Moving on to our key results of the Q2. The robust growth of the tobacco business drove our consolidated earnings in Q2 as well.

Sang-Hak Lee: Based on our profit growth and capacity for shareholder returns, we have increased the amount and the portion of our interim dividend and are assessing the possibility of increasing the DPS for our year-end dividend as well. We will proceed with share buyback and cancellation in the H2 as planned, the scale and timing of which will be decided based on comprehensive assessment of the market situation and our capital policy. We are also preparing for a new round of mid to long-term shareholder return plan to transfer our elevated corporate value into shareholder value, on which our CEO will communicate with the market in the Q4. Moving on to our key results of the Q2. The robust growth of the tobacco business drove our consolidated earnings in Q2 as well.

Speaker #1: And we will proceed with share buyback and cancellation in the second half as planned. The scale and timing of which will be decided based on a comprehensive assessment of the market situation and our capital policy.

Speaker #1: We are also preparing for a new round of mid- to long-term shareholder return plans to transfer our elevated corporate value into shareholder value. Our CEO will communicate this with the market in the fourth quarter.

Speaker #1: And moving on to our key results of the second quarter. The robust growth of the tobacco business drove our consolidated earnings in Q2 as well.

Speaker #1: Consolidated revenue reached 1.7 trillion won, and operating profit was 414.5 billion won, rising 18.5%. With this, we recorded the highest ever H1 revenue for two years and four consecutive quarters of double-digit growth in operating profit.

Aaron Lee: Consolidated revenue reached KRW 1.7 trillion, operating profit KRW 414.5 billion, rising 18.5%. With this, we recorded highest ever H1 revenue for 2 years and 4 consecutive quarters of double-digit growth in operating profit. Our international cigarette business recorded triple growth of volume, revenue, and operating profit for 9 quarters in a row. As the ASP growth trend continued through pricing and mix improvement, volumes grew 7.3%, revenue 18.9%, and operating profit 45.6%. Our NGP business reinforced brand competitiveness and profitability as the lil AIBLE platform successfully penetrated the market, with higher contribution from high ASP sticks leading to profit growth outpacing the revenue growth. In Korea, as the category's penetration increases, our market share rose to 48.2%, solidifying lil's market-leading position. Overseas, strong sales in key markets and a low base effect as the device supply chain normalized led to 35.9% in revenue growth.

Sang-Hak Lee: Consolidated revenue reached KRW 1.7 trillion, operating profit KRW 414.5 billion, rising 18.5%. With this, we recorded highest ever H1 revenue for 2 years and 4 consecutive quarters of double-digit growth in operating profit. Our international cigarette business recorded triple growth of volume, revenue, and operating profit for 9 quarters in a row. As the ASP growth trend continued through pricing and mix improvement, volumes grew 7.3%, revenue 18.9%, and operating profit 45.6%. Our NGP business reinforced brand competitiveness and profitability as the lil AIBLE platform successfully penetrated the market, with higher contribution from high ASP sticks leading to profit growth outpacing the revenue growth. In Korea, as the category's penetration increases, our market share rose to 48.2%, solidifying lil's market-leading position. Overseas, strong sales in key markets and a low base effect as the device supply chain normalized led to 35.9% in revenue growth.

Speaker #1: Our international cigarette business recorded triple growth in volume, revenue, and operating profit for nine quarters in a row. As the ASP growth trend continued through pricing and mix improvement, volumes grew 7.3%, revenue 18.9%, and operating profit 45.6%.

Speaker #1: Our NGP business reinforced brand competitiveness and profitability as the little able platform successfully penetrated the market, with higher contribution from high ASP sticks leading to profit growth outpacing revenue growth.

Speaker #1: In Korea, as the category's penetration increased, our market share rose to 48.2%, solidifying LIL's market-leading position. Overseas, strong sales in key markets and a low-base effect as the device supply chain normalized led to 35.9% revenue growth.

Speaker #1: The strength in our platform competitiveness and heat-not-burn— we are investing in R&D at twice the level of last year. In the second half, we will launch a new platform equipped with innovative heating technology in Korea, and launch our HNB products independently in two overseas markets, all in line with our growth strategy.

Aaron Lee: To strengthen our platform competitiveness in heat-not-burn, we are investing in R&D twice as much as last year. In the H2, we will launch a new platform equipped with innovative heating technology in Korea and launch our HNB products independently in 2 markets overseas, all in line with our growth strategy. Our HFF business also continued its growth trajectory this quarter, supported by promising results in Korea. Promotions maximizing market activation opportunities like the Family Month and individual brand campaigns led to 7.8% revenue growth and double-digit growth in operating profit. Our global nutrition business is also making significant attempts based on various partnerships. In China, we started to supply ginseng materials to a certain global F&B player in launching a new energy drink, which is currently being sold in large distribution channels.

Sang-Hak Lee: To strengthen our platform competitiveness in heat-not-burn, we are investing in R&D twice as much as last year. In the H2, we will launch a new platform equipped with innovative heating technology in Korea and launch our HNB products independently in 2 markets overseas, all in line with our growth strategy. Our HFF business also continued its growth trajectory this quarter, supported by promising results in Korea. Promotions maximizing market activation opportunities like the Family Month and individual brand campaigns led to 7.8% revenue growth and double-digit growth in operating profit. Our global nutrition business is also making significant attempts based on various partnerships. In China, we started to supply ginseng materials to a certain global F&B player in launching a new energy drink, which is currently being sold in large distribution channels.

Speaker #1: Our HFF business also continued its growth trajectory this quarter, supported by promising results in Korea. Promotions maximizing market activation opportunities, like Family Month and individual brand campaigns, led to 7.8% revenue growth and double-digit growth in operating profit.

Speaker #1: Our global nutrition business is also making significant progress through various partnerships. In China, we have started to supply ginseng materials to a global SMB player and are launching a new energy drink, which is currently being sold through major distribution channels.

Speaker #1: In the U.S., through our partnership with Altria, we have expanded our localized product portfolio, with products going through pilot tests in key retail channels.

Aaron Lee: In the US, through our partnership with Altria, we have expanded our localized product portfolio with products going through pilot tests in key retail channels. Reflecting our H1 results and our projections for the H2, we are also revising up our 2026 annual guidance. We are now raising our revenue growth target from the previous 3% to 5%, to 5% to 7%, and operating profit growth target from 6% to 8%, to now 10% to 13%. We will do our utmost in the H2 as well to achieve this guidance target as we maintain our profit-based growth trend. We ask for your unwavering support for KT&G going forward. Thank you. Now, we will move on to details on our 2026 Q2 earnings on page six. In the Q2, robust growth from our tobacco business drove consolidated earnings, while HFF and real estate businesses also grew.

Sang-Hak Lee: In the US, through our partnership with Altria, we have expanded our localized product portfolio with products going through pilot tests in key retail channels. Reflecting our H1 results and our projections for the H2, we are also revising up our 2026 annual guidance. We are now raising our revenue growth target from the previous 3% to 5%, to 5% to 7%, and operating profit growth target from 6% to 8%, to now 10% to 13%. We will do our utmost in the H2 as well to achieve this guidance target as we maintain our profit-based growth trend. We ask for your unwavering support for KT&G going forward. Thank you. Now, we will move on to details on our 2026 Q2 earnings on page six. In the Q2, robust growth from our tobacco business drove consolidated earnings, while HFF and real estate businesses also grew.

Speaker #1: Reflecting our first-half results and our projections for the second half, we are also revising up our 2026 annual guidance. We are now raising our revenue growth target from the previous 3 to 5 percent to 5 to 7 percent, and operating profit growth target from 6 to 8 percent to now 10 to 13 percent.

Speaker #1: We will do our utmost in the second half as well to achieve this guidance target, as we maintain our profit-based growth trend. We ask for your unwavering support for KT&G going forward.

Speaker #1: Thank you. And now, we will move on to details of our Q2 2026 earnings on page 6. In the second quarter, robust growth from our tobacco business drove consolidated earnings, while HFF and real estate businesses also grew.

Speaker #1: Consolidated revenue rose by $9.9% to $1.7016 trillion won. Operating profit growth outpaced the revenue growth, rising by 18.5% to $414.5 billion won. Net income was lifted by higher operating profit and currency-related non-operating profits, rising $152.3% to $362.1 billion won, EPS grew by 164.2% to $3,509 won.

Aaron Lee: Consolidated revenue rose by 9.9% to KRW 1.7016 trillion. Operating profit growth outpaced the revenue growth, rising by 18.5% to KRW 414.5 billion. Net income was lifted by higher operating profit and currency-related non-operating profits, rising 152.3% to KRW 362.1 billion. EPS grew by 164.2% to KRW 3,509. EBITDA rose by 17.4% to KRW 494.4 billion, with EBITDA margins at 29.1%. Next, the factors behind movement in earnings on page seven. Starting with the tobacco business. Increase in volume from International CC and NGP sticks added KRW 43.1 billion. Improved product mix and pricing was a KRW 34.6 billion impact, and dollar appreciation against the won was KRW 15.8 billion increment, totaling to KRW 60.5 billion increase in profit from the tobacco business. HFF and real estate also saw profit growth of KRW 3.8 billion and KRW 2.8 billion respectively.

Sang-Hak Lee: Consolidated revenue rose by 9.9% to KRW 1.7016 trillion. Operating profit growth outpaced the revenue growth, rising by 18.5% to KRW 414.5 billion. Net income was lifted by higher operating profit and currency-related non-operating profits, rising 152.3% to KRW 362.1 billion. EPS grew by 164.2% to KRW 3,509. EBITDA rose by 17.4% to KRW 494.4 billion, with EBITDA margins at 29.1%. Next, the factors behind movement in earnings on page seven. Starting with the tobacco business. Increase in volume from International CC and NGP sticks added KRW 43.1 billion. Improved product mix and pricing was a KRW 34.6 billion impact, and dollar appreciation against the won was KRW 15.8 billion increment, totaling to KRW 60.5 billion increase in profit from the tobacco business. HFF and real estate also saw profit growth of KRW 3.8 billion and KRW 2.8 billion respectively.

Speaker #1: EBITDA rose by 17.4% to ₩494.4 billion, with EBITDA margins at 29.1%. Next, the factors behind the movement in earnings can be found on page 7. Starting with the tobacco business.

Speaker #1: Increase in volume from international CC and NGP sticks added 43.1 billion won. Improved product mix and pricing was a 34.6 billion won impact, and dollar appreciation against the won was 15.8 billion won increment, totaling to 60.5 billion won increase in profit from the tobacco business, HFF and real estate also saw profit growth of 3.8 billion won and 2.8 billion won respectively.

Speaker #1: As a result, consolidated operating profit grew 18.5% to 414.5 billion won. Let's move on to the results from each business segment on page 8.

Aaron Lee: As a result, consolidated operating profit grew 18.5% to KRW 414.5 billion. Let's move on to the results from each business segment on page eight. First, on the tobacco business. Tobacco business revenue was driven by the strong growth of International CC and Korea NGP, rising 11.7% to KRW 1.2185 trillion. Operating profit was supported by Korea and International CC, and the profit center growth of NGP to grow 18.8%, with margins also growing 1.9 percentage points. Also, as business expanded via over CCC, the share of international business in tobacco continued to rise to reach 65.1%. Breaking down the tobacco business into segments on page nine. Beginning with International CC. Our international business continued its strong growth momentum despite the prolonged external uncertainties. In the Middle East, we managed to secure various alternative routes to see growth in both shipment and local sales volume.

Sang-Hak Lee: As a result, consolidated operating profit grew 18.5% to KRW 414.5 billion. Let's move on to the results from each business segment on page eight. First, on the tobacco business. Tobacco business revenue was driven by the strong growth of International CC and Korea NGP, rising 11.7% to KRW 1.2185 trillion. Operating profit was supported by Korea and International CC, and the profit center growth of NGP to grow 18.8%, with margins also growing 1.9 percentage points. Also, as business expanded via over CCC, the share of international business in tobacco continued to rise to reach 65.1%. Breaking down the tobacco business into segments on page nine. Beginning with International CC. Our international business continued its strong growth momentum despite the prolonged external uncertainties. In the Middle East, we managed to secure various alternative routes to see growth in both shipment and local sales volume.

Speaker #1: First, on the tobacco business. Tobacco business revenue was driven by the strong growth of international CC and Korea NGP, rising 11.7% to 1.2185 trillion won.

Speaker #1: Operating profit was supported by Korea and international CC, and the profit-centered growth of NGP, which grew 18.8%, with margins also growing by 1.9 percentage points.

Speaker #1: Also, as business expanded via overseas CC, the share of international business in tobacco continued to rise, reaching 65.1%. Breaking down the tobacco business into segments is shown on page 9.

Speaker #1: Beginning with international CC, our international business continued its strong growth momentum despite prolonged external uncertainties. In the Middle East, we managed to secure various alternative routes to see growth in both shipment and local sales volumes.

Speaker #1: Strong volume growth continued in key regions, including Africa and Eurasia. With this, total international sales volume grew 7.3% year-on-year to 17.92 billion sticks. ASP also maintained its solid growth, with pricing and product mix improvement leading to the international CC business recording triple growth in volume, revenue, and profit for nine consecutive quarters now.

Aaron Lee: Strong volume growth continued in key regions including Africa and Eurasia. With it, total international sales volume grew 7.3% year-on-year to 17.92 billion sticks. ASP also maintained its solid growth with pricing and product mix improvement, leading to the International CC business recording triple growth of volume, revenue, and profit for 9 quarters in a row now. Next to Korea CC on page 10. In Q2, the total cigarette market volume decline was mitigated, shrinking only 1.2% YOY. We reinforced our market-leading position as we continued to increase our market share and minimized our volume decline to 0.6%, with our revenue rising 1.1%. Next is page 11 on NGP. In the Korean NGP business, strong sales of the lil AIBLE platform led to higher contribution from higher ASP sticks and improved profitability. Profit growth outpaced revenue growth as a result.

Sang-Hak Lee: Strong volume growth continued in key regions including Africa and Eurasia. With it, total international sales volume grew 7.3% year-on-year to 17.92 billion sticks. ASP also maintained its solid growth with pricing and product mix improvement, leading to the International CC business recording triple growth of volume, revenue, and profit for 9 quarters in a row now. Next to Korea CC on page 10. In Q2, the total cigarette market volume decline was mitigated, shrinking only 1.2% YOY. We reinforced our market-leading position as we continued to increase our market share and minimized our volume decline to 0.6%, with our revenue rising 1.1%. Next is page 11 on NGP. In the Korean NGP business, strong sales of the lil AIBLE platform led to higher contribution from higher ASP sticks and improved profitability. Profit growth outpaced revenue growth as a result.

Speaker #1: Next to Korea CC on page 10. In Q2, the total cigarette market volume decline was mitigated, shrinking only 1.2% year on year. We reinforced our market-leading position as we continued to increase our market share and minimized our volume decline to 0.6%, with our revenue rising 1.1%.

Speaker #1: Next is page 11 on NGP. In the Korean NGP business, strong sales of the lowable platform led to higher contribution from high ASP sticks and improved profitability.

Speaker #1: Profit growth outpaced revenue growth as a result. International NGP was lifted by expanded sales in key markets, including Russia, and the partial impact from the low-base effect of the device supply disruption in the previous year.

Aaron Lee: International NGP was lifted by expanded sales in key markets including Russia, and partial impact from the low base effect of the device supply disruption in the previous year. Allow me to elaborate on the performance on page 12. In Korea, while the HNB category's penetration of the market continued to grow and competition intensified, the lil AIBLE platform and new stick products were well-received in the market, recording 48.2% in market share for KT&G. In the international business, upgraded device launches in Russia, a key market, continued to show effect, leading to moderate growth in stick volumes. Next on page 13, the HFF business. With promotions for the Family Month campaign and individual brand campaigns in Korea, Q2 HFF revenue grew by 1.5%. As high profit channels, including online, expanded and costs improved, operating profit was boosted by 61.3%. Breaking down Korea and international on page 14.

Sang-Hak Lee: International NGP was lifted by expanded sales in key markets including Russia, and partial impact from the low base effect of the device supply disruption in the previous year. Allow me to elaborate on the performance on page 12. In Korea, while the HNB category's penetration of the market continued to grow and competition intensified, the lil AIBLE platform and new stick products were well-received in the market, recording 48.2% in market share for KT&G. In the international business, upgraded device launches in Russia, a key market, continued to show effect, leading to moderate growth in stick volumes. Next on page 13, the HFF business. With promotions for the Family Month campaign and individual brand campaigns in Korea, Q2 HFF revenue grew by 1.5%. As high profit channels, including online, expanded and costs improved, operating profit was boosted by 61.3%. Breaking down Korea and international on page 14.

Speaker #1: Allow me to elaborate on the performance on page 12. In Korea, while the HNB category's penetration of the market continued to grow and competition intensified, the Lil Aible platform and new stick products were well-received in the market, recording a 48.2% market share for KT&G.

Speaker #1: In the international business, upgraded device launches in Russia, a key market, continued to show effect, leading to moderate growth in stick volumes. Next, on page 13, the HFF business.

Speaker #1: With promotions for the Family Month campaign and individual brand campaigns in Korea, Q2 HFF revenue grew by 1.5%. As high-profit channels, including online, expanded and costs improved, operating profit was boosted by 61.3%.

Speaker #1: Breaking down Korea and international in page 14: In Korea, promotions for Family Month and high oil price relief subsidies, as well as individual brand campaigns, led to expanded sales across all channels, with overall revenue rising by 7.8%.

Aaron Lee: In Korea, promotions for Family Month and high oil price relief subsidies and individual brand campaigns led to expanded sales across all channels, with overall revenue rising by 7.8%. Overseas, reduced sales in China due to inventory adjustment led to lower revenue year-on-year. Lastly, on page 15 for real estate. Real estate revenue grew as construction rates progressed in development projects including Anyang, Mia, East Daejeon, rising 10.2% YOY. Operating profit also grew by 15.8% with higher revenue from development projects. This concludes our 2026 Q2 earnings release presentation. We are now happy to take your questions.

Sang-Hak Lee: In Korea, promotions for Family Month and high oil price relief subsidies and individual brand campaigns led to expanded sales across all channels, with overall revenue rising by 7.8%. Overseas, reduced sales in China due to inventory adjustment led to lower revenue year-on-year. Lastly, on page 15 for real estate. Real estate revenue grew as construction rates progressed in development projects including Anyang, Mia, East Daejeon, rising 10.2% YOY. Operating profit also grew by 15.8% with higher revenue from development projects. This concludes our 2026 Q2 earnings release presentation. We are now happy to take your questions.

Speaker #1: Overseas, reduced sales in China due to inventory adjustment led to lower revenue year-on-year. Lastly, on page 15, for real estate: real estate revenue grew as construction rates progressed and development projects, including Anyang, Mia, East Daejeon, rising 10.2% year-on-year.

Speaker #1: Operating profit also grew by 15.8%, with higher revenue from development projects. This concludes our 2026 second quarter earnings release presentation. We are now happy to take your questions.

Speaker #2: 지금부터 질의응답을 시작하겠습니다. 질문을 하실 분은 전화기 버튼에 별표와 1번을 누르시기 바랍니다. 질문을 취소하시려면 별표와 2번을 누르시면 됩니다. Now, the Q&A session will begin. Please press star 1.

Operator: Now Q&A session will begin. Please press star one, that is star and one, if you have any questions. Questions will be taken according to the order you have pressed the number star one. For cancellation, please press star two, that is star and two on your phone.

Operator: [Foreign language]

[Translator 1]: Now Q&A session will begin. Please press star one, that is star and one, if you have any questions. Questions will be taken according to the order you have pressed the number star one. For cancellation, please press star two, that is star and two on your phone.

Speaker #2: That is star one. If you have any questions, questions will be taken according to the order you have pressed the number star one.

Speaker #2: For cancellation, please press star 2. That is, star and 2 on your phone. 처음으로 질문해 주실 분은 메리츠증권의 김정욱 이입니다. The first question will be provided by Jeongwook Kim from Meritz Securities.

Aaron Lee: 처음으로 질문해 주실 분은 메리츠증권의 김정욱 위입니다. The first question will be provided by Jongwook Kim from Meritz Securities. Please go ahead with your question.

Operator: [Foreign language]

[Translator 1]: The first question will be provided by Jongwook Kim from Meritz Securities. Please go ahead with your question.

Speaker #2: Please go ahead with your question.

Speaker #3: 아, 예. 질문 주셔서 감사합니다. 총 세 가지 질문 드리고 싶은데요. 첫 번째로 2분기 국내 관련 총수요 감소폭이 기존 자연 감소폭 대비 좀 축소가 됐습니다. 그래서 이 요인에 대한 설명 부탁드리고요.

Jongwook Kim: 질문 기회 주셔서 감사합니다. 총 세 가지 질문드리고 싶은데요. 첫 번째로 2분기 국내 관련 총수요 감소폭이 기존 자연 감소폭 대비 축소가 됐습니다. 그래서 이 요인에 대한 설명 부탁드리고요. 이런 부분이 하반기에도 지속 가능성이 있는지 말씀 좀 부탁드립니다. 두 번째는 NGP 쪽이고요. lil AIBLE 성공 요인과 국내 시장 성장 관련해서 전망 말씀 부탁드리고요. 마지막으로 주주환원인데요. 하반기 신주주환원 정책에 대해서 가이드라인과 방향성에 대한 코멘트 부탁드립니다. 감사합니다.

Jongwook Kim: [Foreign language]

Speaker #3: 이런 부분이 하반기에도 지속 가능성이 있는지 말씀 좀 부탁드립니다. 두 번째는 NGP 쪽이고요. 릴 에이블 성공 요인과 국내 시장 성장 관련해서 전망 좀 말씀 부탁드리겠습니다.

Speaker #3: 마지막으로 이제 주주 환원인데요. 하반기 신(新) 주주환원 정책에 대해서 가이드라인과 방향성에 대한 코멘트 좀 부탁드립니다. 감사합니다.

Speaker #2: Thank you for taking my question. I would like to ask three questions. First, in the second quarter, we've seen that the natural erosion of your domestic combustible cigarette business actually narrowed compared to the past.

Aaron Lee: Thank you for taking my question. I would like to ask three question. First thing, in Q2, we've seen that the natural erosion of your domestic combustible cigarette business had actually narrowed compared to the past. I would like to understand as to the reason why, and whether you believe that this trend will continue onwards into H2. Second question has to do with your NGP business. What do you think are the key success factors that's driving the growth of lil AIBLE? Also, what's your outlook going forward? The third question is, would like to gain some more direction and guidance of the new shareholder return policy, which you will be announcing in H2.

[Translator 2]: Thank you for taking my question. I would like to ask three question. First thing, in Q2, we've seen that the natural erosion of your domestic combustible cigarette business had actually narrowed compared to the past. I would like to understand as to the reason why, and whether you believe that this trend will continue onwards into H2. Second question has to do with your NGP business. What do you think are the key success factors that's driving the growth of lil AIBLE? Also, what's your outlook going forward? The third question is, would like to gain some more direction and guidance of the new shareholder return policy, which you will be announcing in H2.

Speaker #2: So I would like to understand the reason why, and whether you believe this trend will continue into the second half of the year.

Speaker #2: The second question has to do with your NGP business. What do you think are the key success factors that are driving the growth of lil, and also, what's your outlook going forward?

Speaker #2: And the third question is, I would like to gain some more direction and guidance on the new shareholder return policy, which you will be announcing in the second half of the year.

Speaker #2: 네, 첫 번째 총수요 감소폭이 기존 자연 감소폭 대비 축소된 요인과 하반기 지속 가능성에 대해서는 마케팅 본부장님께서, 두 번째 질문인 릴 에이블 성공 요인 및 국내 시장 성장 전망에 대해서는 NGP 사업 본부장님께서, 세 번째 질문 주신 하반기 신주주환원 정책 가이드라인 방향성에 대해서는 총괄 본부장님께서 답변 드리도록 하겠습니다.

Aaron Lee: 첫 번째, 총수요 감소폭이 기존 자연 감소폭 대비 축소된 요인과 하반기 지속 가능성에 대해서는 마케팅본부장님께서, 두 번째 질문인 lil AIBLE 성공 요인 및 국내 시장 성장 전망에 대해서는 NGP사업본부장님께서, 세 번째 질문 주신 하반기 신주주환원 정책 가이드라인 방향성에 대해서는 총괄부문장님께서 답변드리도록 하겠습니다.

Aaron Lee: [Foreign language]

Speaker #3: 예, 안녕하십니까. 마케팅 본부장 하추안구입니다. 질의하신 내용 중 국내 관련 총수요 감소폭의 축소 원인과 하반기 지속 가능성에 대해 말씀드리겠습니다. 관련 총수요는 인구 감소 등에 따른 자연 감소분과 HMB 액상 등 대체 제품으로의 수요 이전 영향으로 연간 약 4% 수준의 감소세를 보여왔습니다.

Chang Gu Huh: 안녕하십니까? 마케팅본부장 하창구입니다. 질의하신 내용 중 국내 관련 총수요 감소폭의 축소 원인과 하반기 지속 가능성에 대해 말씀드리겠습니다. 관련 총수요는 인구 감소 등에 따른 자연 감소분과 HNB 액상 등 대체 제품으로의 수요 이전 영향으로 연간 약 4% 수준의 감소세를 보여왔습니다. 다만 올해 2분기에는 관련 총수요가 약 145억 개비로 전년 동기 대비 약 1.2% 감소하는 데 그쳐 과거 대비 감소세가 줄어든 것이 사실입니다. 이는 올해 4월 시행된 담배사업법 개정에 따라 합성 니코틴 액상형 담배로의 수요 이전이 둔화된 영향이 일부 있는 것으로 저희는 판단하고 있습니다. 그러나 이를 구조적인 변화로 단정하기에는 이르다고 보며, 하반기에도 총수요 변화 추이를 지속적으로 모니터링 할 생각을 가지고 있습니다. 이상입니다.

Chang Gu Huh: [Foreign language]

Speaker #3: 다만, 올해 2분기에는 관련 총수요가 약 145억 개비로 전년 동기 대비 약 1.2% 감소하는 데 그쳐, 과거 대비 감소세가 줄어든 것이 사실입니다. 이는 올해 4월 시행된 담배사업법 개정에 따라 합성 니코틴 액상형 담배로의 수요 이전이 둔화된 영향이 일부 있는 것으로 저희는 판단하고 있습니다.

Speaker #3: 그러나 이를 구조적인 변화로 단정하기에는 이르다고 보며, 하반기에도 총수요 변화 추이를 지속적으로 모니터링할 생각을 가지고 있습니다. 이상입니다.

Speaker #2: I am CMO 허창구. I will be responding to your question about the reason why we've seen a narrower decline in terms of the total volume.

Aaron Lee: I am CMO, Ha Chang-gu. I will be responding to your question about the reason why we've seen narrower decline in terms of the total volume. If you look at the total CC demand, it naturally eroded due to the decline in population, also because the demand is shifting to other alternative products like HNB, Heat-not-Burn, and e-vapor products. There was around 4% yearly decline. In Q2, if you look at the total demand, it was 14.5 billion sticks, which is down only by 1.2% versus last year. You would see that the decline is narrowing. We think part of the reason is because of the slower demand shift to synthetic nicotine e-vapor products following the amendment to the Act on Tobacco Business, which took effect in the month of April.

[Translator 2]: I am CMO, Ha Chang-gu. I will be responding to your question about the reason why we've seen narrower decline in terms of the total volume. If you look at the total CC demand, it naturally eroded due to the decline in population, also because the demand is shifting to other alternative products like HNB, Heat-not-Burn, and e-vapor products. There was around 4% yearly decline. In Q2, if you look at the total demand, it was 14.5 billion sticks, which is down only by 1.2% versus last year. You would see that the decline is narrowing. We think part of the reason is because of the slower demand shift to synthetic nicotine e-vapor products following the amendment to the Act on Tobacco Business, which took effect in the month of April.

Speaker #2: If you look at the total CC demand, it naturally eroded due to the decline in population, but also because the demand is shifting to other alternative products like HNB, heat-not-burn, and e-vapor products.

Speaker #2: There was around a 4% yearly decline. But in the second quarter, if you look at the total demand, it was 14.5 billion sticks, which is down only by 1.2% versus last year.

Speaker #2: So you would see that the decline is narrowing. And we think part of the reason is because of the slower demand shift to synthetic nicotine, e-vapor products, following the amendment to the Act on Tobacco Business, which took effect in the month of April.

Speaker #2: Having said that, we believe that it is, however, too early to say that this is a structural change. So, we will closely monitor the demand trend going forward, as well as the key drivers for change.

Aaron Lee: Having said that, we believe that it is however too early to say that this is a structural change. We will closely monitor demand trend going forward as well as key drivers for change.

[Translator 2]: Having said that, we believe that it is however too early to say that this is a structural change. We will closely monitor demand trend going forward as well as key drivers for change.

Speaker #3: 예, 안녕하십니까. NGP 사업본부장 김동필입니다. 질의하신 릴 에이블 성공 요인과 국내 시장 성장 전망에 대해서 말씀드리겠습니다. 회사는 기존 에이블 2.0 플랫폼보다 업그레이드된 에이블 3.0을 금년 6월에 전국으로 확대하였으며, 업그레이드된 플랫폼의 경우 예열 시간 단축 및 초고속 충전 등 사용자의 편의성을 개선한 점이 소비자들의 긍정적인 반응으로 이어졌다고 봅니다.

Dong Pil Kim: 안녕하십니까? NGP사업본부장 김동필입니다. 질의하신 lil AIBLE 성공 요인과 국내 시장 성장 전망에 대해서 말씀드리겠습니다. 회사는 기존 AIBLE 2.0 플랫폼보다 업그레이드된 lil AIBLE 3.0을 금년 6월에 전국으로 확대하였으며, 업그레이드된 플랫폼의 경우 예열 시간 단축 및 초고속 충전 등 사용자의 편의성을 개선한 점이 소비자들의 긍정적인 반응으로 이어졌다고 봅니다. 그 결과 lil AIBLE 디바이스와 전용 스틱 판매가 빠르게 확대되었으며, 스틱 점유율도 48.2%를 기록해 이와의 격차를 약 3%포인트까지 확대하였습니다. 향후에도 lil AIBLE을 포함한 기존 플랫폼의 경쟁력을 지속적으로 강화할 계획입니다. 업그레이드된 플랫폼을 지속적으로 출시하여 NGP 시장의 성장 모멘텀을 이어나갈 계획입니다.

Dong-Pil Kim: [Foreign language]

Speaker #3: 그 결과, 릴 에이블 디바이스와 전용 스틱 판매가 빠르게 확대되었으며, 스틱 점유율도 48.2%를 기록해 이와의 격차를 약 3%포인트까지 확대하였습니다. 향후에도 릴 에이블을 포함한 기존 플랫폼의 경쟁력을 지속적으로 강화할 계획입니다.

Speaker #3: 업그레이드된 플랫폼을 지속적으로 출시하여 NGP 시장의 성장 모멘텀을 이어나갈 계획입니다.

Speaker #2: Next, responding to your question about the key success drivers behind LOWABLE and our take on the market outlook for the domestic market, I am NGP Chief, Kim Dong-pil.

Aaron Lee: Responding to your question about the key success drivers behind lil AIBLE, and what our take in terms of the market outlook is for the domestic market. I am NGP Chief, Kim Dong-pil. The company had expanded the rollout of lil AIBLE 3.0 in month of June, which is an upgraded version compared to the existing lil AIBLE 2.0 platform. If you take a look at this upgraded platform, it provided a better convenience to our users by reducing the pre-heat time and providing high-speed charging, which received quite positive response from our consumers. As a result, we were able to see a very fast uptake in the sales of the sticks for lil AIBLE as well as the device. Out of the total stick market, the share of market had recorded 48.2%, and we were able to widen the gap with the number two player by 3 percentage points.

[Translator 2]: Responding to your question about the key success drivers behind lil AIBLE, and what our take in terms of the market outlook is for the domestic market. I am NGP Chief, Kim Dong-pil. The company had expanded the rollout of lil AIBLE 3.0 in month of June, which is an upgraded version compared to the existing lil AIBLE 2.0 platform. If you take a look at this upgraded platform, it provided a better convenience to our users by reducing the pre-heat time and providing high-speed charging, which received quite positive response from our consumers. As a result, we were able to see a very fast uptake in the sales of the sticks for lil AIBLE as well as the device. Out of the total stick market, the share of market had recorded 48.2%, and we were able to widen the gap with the number two player by 3 percentage points.

Speaker #2: The company expanded the rollout of Able 3.0 in the month of June, which is an upgraded version compared to the existing Able 2.0 platform.

Speaker #2: If you take a look at this upgraded platform, it provided better convenience to our users by reducing the preheat time and providing high-speed charging, which received quite a positive response from our customers.

Speaker #2: As a result, we were able to see a very fast uptake in the sales of the sticks for lil Able as well as the device, and out of the total stick market, the share of market had recorded 48.2%.

Speaker #2: And we were able to widen the gap with the number two player by three percentage points. Going forward, our plan is to continuously strengthen the competitiveness of our existing platform, including that of low-able, and we will continue to roll out more upgraded versions of the platform in the NGP market so that we can continue on with the growth momentum.

Aaron Lee: Going forward, our plan is to continuously strengthen the competitiveness of our existing platform, including that of lil AIBLE. We will continue also to roll out more upgraded version of the platform in the NGP market so that we can continue on with the growth momentum.

[Translator 2]: Going forward, our plan is to continuously strengthen the competitiveness of our existing platform, including that of lil AIBLE. We will continue also to roll out more upgraded version of the platform in the NGP market so that we can continue on with the growth momentum.

Speaker #3: 네, 수석 부사장 이상학입니다. 질의하신 내용 중에 새로운 주주환원 정책의 방향성에 대해서 잠깐 말씀드리겠습니다. 앞서 말씀드린 바와 같이, 회사는 4분기에 새로운 중장기 주주환원 정책을 발표할 예정입니다.

Sang Lee: 네, 수석부사장 이상학입니다. 질의하신 내용 중에 새로운 주주 환원 정책의 방향성에 대해서 잠깐 말씀드리겠습니다. 앞서 말씀드린 바와 같이 회사는 4분기에 새로운 중장기 주주 환원 정책을 발표할 예정입니다. 24년 11월에 발표한 기업가치 제고 계획 중에 자사주 소각 목표를 20% 조기에 달성함에 따라서 최근 주가 상승과 또 글로벌 피어사의 배당 성향 등을 고려해서 배당 강화 중심의 주주 환원 정책을 검토하고 있습니다. 아울러서 자사주 매입 소각 역시 주주 환원의 중요한 축으로 그대로 유지하며, 시장 상황과 기업가치 제고 효과를 종합적으로 고려해서 운영할 계획입니다. 이러한 배당 강화 기조의 첫 단계로 금년도 중간배당을 600원 인상했으며, 기말배당 인상도 함께 검토하고 있습니다. 아울러 연간 배당에서 중간배당이 차지하는 비중도 소폭 확대해서 연중 주주 환원을 강화했습니다.

Sang-Hak Lee: [Foreign language]

Speaker #3: 2024년 11월에 발표한 기업가치 제고 계획 중에 자사주 소각 목표를 20% 조기에 달성함에 따라서 최근 주가 상승과 또 글로벌 피어사의 배당 성향 등을 고려해서 배당 강화 중심의 주주환원 정책을 검토하고 있습니다.

Speaker #3: 아울러 자사주 매입·소각 역시 주주환원의 중요한 축으로 그대로 유지하며, 시장 상황과 기업가치 제고 효과를 종합적으로 고려하여 운영할 계획입니다. 이러한 배당 강화 기조의 첫 단계로 금년도 중간 배당을 600원 인상했으며, 기말 배당 인상도 함께 검토하고 있습니다.

Speaker #3: 아울러, 연간 배당에서 중간 배당이 차지하는 비중도 소폭 확대해 연중 주주 환원을 강화했습니다.

Speaker #2: Taking your question on the upcoming shareholder return program, which we will be sharing in the second half of the year, I am Lee Sang-hak, Chief Finance and Operating Officer, responding to your question.

Aaron Lee: Taking your question on the upcoming shareholder return program, which we will be sharing in H2 of the year. I am Lee Sang-hak, Chief Finance and Operating Officer, responding to your question. As I've mentioned at the opening, during Q4, the company will be announcing its new mid to longer term shareholder return program. Since we achieved treasury share cancellation target under the value of plan of November 2024 at 20% earlier than planned and expected, in light of the increases in the share price that we are seeing, and considering the payout ratio of our global peers, we are currently looking at developing shareholder return policy with a strong focus on strengthening dividend payout.

[Translator 2]: Taking your question on the upcoming shareholder return program, which we will be sharing in H2 of the year. I am Lee Sang-hak, Chief Finance and Operating Officer, responding to your question. As I've mentioned at the opening, during Q4, the company will be announcing its new mid to longer term shareholder return program. Since we achieved treasury share cancellation target under the value of plan of November 2024 at 20% earlier than planned and expected, in light of the increases in the share price that we are seeing, and considering the payout ratio of our global peers, we are currently looking at developing shareholder return policy with a strong focus on strengthening dividend payout.

Speaker #2: As I mentioned at the opening, during the fourth quarter, the company will be announcing its new mid- to longer-term shareholder return program. Since we achieved the treasury share cancellation target under the value-up plan of November 2024 at 20%—earlier than planned and expected—and in light of the increases in the share price that we are seeing, and considering the payout ratio of our global peers, we are currently looking at developing a shareholder return policy with a strong focus on strengthening dividend payout.

Speaker #2: Share buyback and cancellation will also be an important pillar of our shareholder return program, and we will implement the program considering overall aspects, including the market situation and effects on KT&G value enhancement.

Aaron Lee: Share buyback and cancellation will also be an important pillar of our shareholder return program. We will implement the program considering the overall aspects, including market situation and effects on corporate value enhancement. Under such progressive stance on dividend payout, as the first step, we decided to increase interim dividend by KRW 600 and are also considering increasing the year-end dividend as well. We also increased the share of interim payout against the annual distribution so as to strengthen shareholder return during the calendar year.

[Translator 2]: Share buyback and cancellation will also be an important pillar of our shareholder return program. We will implement the program considering the overall aspects, including market situation and effects on corporate value enhancement. Under such progressive stance on dividend payout, as the first step, we decided to increase interim dividend by KRW 600 and are also considering increasing the year-end dividend as well. We also increased the share of interim payout against the annual distribution so as to strengthen shareholder return during the calendar year.

Speaker #2: Under such a progressive stance on dividend payout, as the first step, we decided to increase the interim dividend by 600 won and are also considering increasing the year-end dividend as well.

Speaker #2: We also increased the share of interim payout against the annual distribution so as to strengthen shareholder return during the calendar year. 다음으로 질문해 주실 분은 KB증권의 류은혜 님입니다.

Aaron Lee: 다음으로 질문해 주실 분은 KB증권의 류은혜 님입니다. The following question will be presented by Eunhye Ryu from KB Securities. Please go ahead with your question.

Operator: [Foreign language]

Speaker #2: The following question will be presented by Yumi Ryu from KB Securities. Please go ahead with your question. 안녕하세요, KB증권 류은혜입니다. 질문 기회 감사드립니다. 저 두 가지 질문 드리려고 하는데요.

[Translator 1]: The following question will be presented by Eunhye Ryu from KB Securities. Please go ahead with your question.

Eunhye Ryu: 안녕하세요. KB증권 류은혜입니다. 질문 기회 감사드립니다. 저 두 가지 질문드리려고 하는데요. 첫 번째로 해외 궐련 관련해서 최근 달러 상황 감안하셔서 하반기 ASP와 수량 성장률 전망 부탁드리려고 하고요. 그리고 두 번째로는 자사주 관련해서 하반기 매입 소각 진행 시점 공유 가능하신 부분이랑 비핵심 자산 유동화 재원 활용한 플러스알파 프로그램 진행 가능성 여쭤보고 싶습니다. 감사합니다.

Eun Ae Ryu: [Foreign language]

Speaker #2: 첫 번째로, 해외 관련해서 최근 달러 상황을 감안하셨을 때 하반기 ASP와 수량 성장률 전망 부탁드리려고 하고요. 그리고 두 번째로는 자사주 관련해서 하반기 매입 및 소각 진행 시점 공유 가능하신 부분이랑, 기획 신자산 유동화 재원 활용한 플러스 알파 프로그램 진행 가능성 여쭤보고 싶습니다.

Speaker #2: Thank you. I am Yu Eun-hye from KB Securities. Thank you for taking my question. Today, I have two questions that I wish to ask. The first one has to do with your global CC business.

Aaron Lee: I am Eunhye from KB Securities. Thank you for taking my question. I have two questions that I wish to ask. The first one has to do with your Global CC business. In light of the strong dollar environment, what is your H2 outlook in terms of the volume as well as ASP trend? My second question relates to the timing of when you're going to do your share buyback, and when you will implement the cancellation of such treasury shares. Is there any possibility of you implementing the Plus Alpha Program, which is for the non-core asset liquidation?

Speaker #2: In light of the strong dollar environment, what is your second half outlook in terms of volume as well as the ASP trend? My second question relates to the timing of when you are going to do your share buyback and when you will implement the cancellation of such treasury shares.

Speaker #2: And also, is there any possibility of you implementing the plus alpha program, which is for the non-core asset liquidation? 네, 첫 번째 질문인 강달러 상황 속 해외 관련 수량 및 ASP 상승 전망에 대해서는 해외 사업 본부장님께서, 두 번째 질문인 자사주 매입 소각 진행 시점과 기획신자산 유동화 재원을 활용한 플러스 알파 프로그램 진행 가능성에 대해서는 총괄 부문장님께서 답변드리도록 하겠습니다.

Aaron Lee: 네, 첫 번째 질문인 강달러 상황 속 해외 궐련 수량 및 ASP 상승 전망에 대해서는 해외사업본부장님께서, 두 번째 질문인 자사주 매입 소각 진행 시점과 비핵심 자산 유동화 재원을 활용한 플러스알파 프로그램 진행 가능성에 대해서는 총괄부문장님께서 답변드리도록 하겠습니다.

Aaron Lee: [Foreign language]

Min Suk Kwon: 안녕하십니까? 해외사업본부장 권민석입니다. 질의하신 수량 및 ASP 상승 전망에 대해 말씀드리겠습니다. 해외 건련은 24년과 25년에 이어 올해 상반기에도 두 자릿수 수량 성장을 기록하였습니다. 특히 아프리카, 중남미 등 신시장뿐만 아니라 러시아와 인도네시아 등 직접 사업 국가에서도 좋은 성장세를 이어가고 있습니다. ASP 역시 24년과 25년 모두 환율 효과를 제외하고도 두 자릿수 성장을 기록했습니다. 올해도 견조한 상승세를 유지할 것으로 보고 있습니다. 신규 육성 국가 확대와 가격 인상 그리고 고가 신제품 출시를 통한 믹스 개선이 지속되면서 26년과 27년에도 수량과 ASP 성장을 안정적으로 이어나갈 것으로 기대하고 있습니다. 이상입니다.

Min-Seok Kwon: [Foreign language]

Speaker #3: 안녕하십니까. 해외사업본부장 권민석입니다. 질의하신 수량 및 ASP 상승 전망에 대해 말씀드리겠습니다. 해외 관련은 2024년과 2025년에 이어 올해 상반기에도 두 자릿수 수량 성장을 기록하였습니다.

Speaker #3: 특히 아프리카, 중남미 등 신시장뿐만 아니라 러시아와 인도네시아 등 직접 사업 국가에서도 고른 성장세를 이어가고 있습니다. ASP 역시 2024년과 2025년 모두 환율 효과를 제외하고도 두 자릿수 성장을 기록했습니다.

Speaker #3: 올해도 견조한 상승세를 유지할 것으로 보고 있습니다. 신규 육성 국가 확대와 각 가격 인상, 그리고 고가 신제품 출시를 통한 믹스 개선이 지속되면서 2026년과 2027년에도 수량과 ASP 성장을 안정적으로 이어나갈 것으로 기대하고 있습니다.

Speaker #3: 이상입니다.

Speaker #2: Thank you. Responding to your question, I am Kwon Minseok, Chief of Global Business. I will talk about our second-half outlook for volume and ASP growth.

Aaron Lee: Thank you. Responding to your question, I am Kwon Min Seo, Chief of Global Business. I will talk about our H2 outlook for volume and ASP growth. If you look at our Global CC business in the H1 of the year, we also reported a double-digit volume growth, as was the case back in 2024 and 2025. We've been able to drive growth not only around the new markets, which include Africa and Latin America, but also in countries where we directly engage in the business, which are Russian market and Indonesia. We've been able to achieve an evenly spread growth across these regions.

[Translator 2]: Thank you. Responding to your question, I am Kwon Min Seo, Chief of Global Business. I will talk about our H2 outlook for volume and ASP growth. If you look at our Global CC business in the H1 of the year, we also reported a double-digit volume growth, as was the case back in 2024 and 2025. We've been able to drive growth not only around the new markets, which include Africa and Latin America, but also in countries where we directly engage in the business, which are Russian market and Indonesia. We've been able to achieve an evenly spread growth across these regions.

Speaker #2: If you look at our global CC business in the first half of the year, we also reported double-digit volume growth, as was the case back in 2024 and 2025.

Speaker #2: We've been able to drive growth not only in new markets, which include Africa and Latin America, but also in countries where we directly engage in the business, which are the Russian market and Indonesia.

Speaker #2: We've been able to achieve evenly spread growth across these regions. If you look at the ASP trend as well, even if you exclude the impact of FX movements in '24 and '25, we were still able to drive double-digit growth, and we are expected to continue with that robust uptrend this year as well.

Aaron Lee: If you look at ASP trend as well, even if you exclude the impact of FX movement in 2024 and 2025, we still were able to drive a double-digit growth, and we are expected to continue on with that robust uptrend this year as well. By leveraging increases in the sales price, the ASP, and improving the product mix, focusing on premium product, we are able to sustain the improvement in ASP trajectory, and hence we believe that for 2026 and 2027 as well, we will be able to maintain a quite steady trend in terms of volume and ASP.

[Translator 2]: If you look at ASP trend as well, even if you exclude the impact of FX movement in 2024 and 2025, we still were able to drive a double-digit growth, and we are expected to continue on with that robust uptrend this year as well. By leveraging increases in the sales price, the ASP, and improving the product mix, focusing on premium product, we are able to sustain the improvement in ASP trajectory, and hence we believe that for 2026 and 2027 as well, we will be able to maintain a quite steady trend in terms of volume and ASP.

Speaker #2: By leveraging increases in the sales price, the ASP, and improving the product mix focusing on premium products, we are able to sustain that improvement in the ASP trajectory. Hence, we believe that for '26 and '27 as well, we will be able to maintain a quite steady trend in terms of volume and ASP.

Sang Lee: 네, 수석부사장 이상학입니다. 자사주 매입과 비핵심 자산 유동화 등에 대해 말씀드리겠습니다. 먼저 올해 계획한 자사주 매입 소각은 하반기 중 실행할 계획임을 말씀드리겠습니다. 다만 최근 국내 증시의 변동성이 확대되고 있는 만큼, 회사는 주주 가치 제고 효과를 극대화하는 방향으로 그 시기와 규모 등을 면밀하게 종합적으로 검토하고 있으며, 이사회 논의를 거쳐 확정할 예정입니다. 다음, 자산 유동화 부분 말씀드리겠습니다. 회사는 24년, 25년 두 해에 걸쳐서 약 1조 원 규모 자산 유동화를 통해 Plus Alpha Program의 주주 환원과 성장 투자를 시행하였습니다. 향후에는 실적 성장에 기반한 배당 확대, 자사주 매입 소각 등을 주주 환원 정책의 중심으로 생각하고 있으며, 추가적인 비핵심 자산 유동화는 현재 CapEx 투자가 줄어들고 있고, Free Cash가 늘어나는 그런 현금 흐름의 추세, 주주 환원 이행 정도, 글로벌 성장 투자 등을 종합적으로 고려해서 추진할 계획입니다.

Sang-Hak Lee: [Foreign language]

Speaker #3: 네, 수급 분화상 이상학입니다. 자사주 매입과 기획 신자산 유동화 등에 대해 말씀드리겠습니다. 먼저, 올해 계획한 자사주 매입 소각은 하반기 중 실행할 계획임을 말씀드리겠습니다. 다만, 최근 국내 증시의 변동성이 확대되고 있는 만큼, 회사는 주주가치 제고 효과를 극대화하는 방향으로 그 시기와 규모 등을 면밀하게 종합적으로 검토하고 있으며, 이사회 논의를 거쳐 확정할 예정입니다.

Speaker #3: 다음 자산 유동화 부분 말씀드리겠습니다. 회사는 2024년, 2025년 두 해에 걸쳐서 약 1조 원 규모 자산 유동화를 통해 플러스 알파의 주주 환원과 성장 투자를 시행하였습니다.

Speaker #3: 향후에는 실적, 실적 성장에 기반한 배당 확대, 자사주 매입·소각 등을 주주환원 정책의 중심으로 생각하고 있습니다. 추가적인 기획신자산 유동화는 현재 CAPEX 투자가 줄어들고 있고, Free Cash가 늘어나는 현금 흐름의 추세, 주주환원 이행 정도, 글로벌 성장 투자 등을 종합적으로 고려해서 추진할 계획입니다.

Speaker #2: I am Lee Sang-hak, Chief Financial and Operating Officer. We'll take your question on the timing of the share buyback and cancellation. I can tell you that the share buyback and cancellation is planned for this year and will take place in the second half of the year.

Aaron Lee: I am Lee Sang-hak, Chief of Finance and Operating Officer, will take your question on the timing of share buyback and cancellation. I will tell you that share buyback and cancellation is planned for this year, and it will take place in H2. However, because of high market volatility that we see in the stock market, we are trying to decide on the best timing and scale that will maximize shareholder value enhancement. The BOD will make their decisions after thorough deliberation. In terms of our plan for further monetizing our assets, through KRW 1 trillion of asset monetization, we made incremental shareholder return and had made growth investment under our Plus Alpha program.

[Translator 2]: I am Lee Sang-hak, Chief of Finance and Operating Officer, will take your question on the timing of share buyback and cancellation. I will tell you that share buyback and cancellation is planned for this year, and it will take place in H2. However, because of high market volatility that we see in the stock market, we are trying to decide on the best timing and scale that will maximize shareholder value enhancement. The BOD will make their decisions after thorough deliberation. In terms of our plan for further monetizing our assets, through KRW 1 trillion of asset monetization, we made incremental shareholder return and had made growth investment under our Plus Alpha program.

Speaker #2: However, because of the high market volatility that we see in the stock market, we are trying to decide on the best timing and scale that will maximize shareholder value enhancement.

Speaker #2: And so the BOD will make their decision after thorough deliberation. In terms of our plan for further monetizing and our asset, through 1 trillion won of asset monetization, we made incremental shareholder return and had made investment into had made growth investment under our plus alpha program.

Speaker #2: We believe that a progressive dividend payout stance is an important pillar for us, and share buyback and cancellation shall be based on the earnings growth of the company, which will form a key pillar behind the shareholder return program that we implement.

Aaron Lee: We believe that progressive dividend payout stance is an important pillar for us. Share buyback and cancellation shall be based on the earnings growth of the company, which will form a key pillar behind the shareholder return program that we implement. In terms of the monetization from non-core assets, the decision will be made when necessary and in light of the movement in their CapEx spending and rising free cash flow. After considering cash flow and shareholder return implementation and global growth investment, we will make the decision to implement such monetization.

[Translator 2]: We believe that progressive dividend payout stance is an important pillar for us. Share buyback and cancellation shall be based on the earnings growth of the company, which will form a key pillar behind the shareholder return program that we implement. In terms of the monetization from non-core assets, the decision will be made when necessary and in light of the movement in their CapEx spending and rising free cash flow. After considering cash flow and shareholder return implementation and global growth investment, we will make the decision to implement such monetization.

Speaker #2: In terms of the monetization from non-core assets, it will be the decision will be made when necessary and in light of the movement in the capital expenditure spending and rising free cash flow after considering cash flow and shareholder return implementation and global growth investment, we will make the decision to implement such monetization.

Operator: 다음으로 질문해 주실 분은 신한투자증권의 조상훈 님입니다.

Operator: [Foreign language]

Speaker #2: 다음으로 질문해 주실 분은 신한투자증권의 조상훈 님입니다. The following question will be presented by Seonghun Cho from Shinhan Investment & Securities. Please go ahead with your question.

Aaron Lee: The following question will be presented by Cho Sang-hoon from Shinhan Investment & Securities. Please go ahead with your question.

[Translator 1]: The following question will be presented by Cho Sang-hoon from Shinhan Investment & Securities. Please go ahead with your question.

Speaker #3: 네, 안녕하세요. 신한 조상훈입니다. 질문 기회 감사드리고요. 저도 이제 세 가지 질문이 있는데요. 먼저, 올해 MZP 신규 플랫폼 런칭 계획 관련해서 공유해 주시면 감사드리겠고요.

Cho Sang-hoon: 네, 안녕하세요. 신한 조상훈입니다. 질문 기회 감사드리고요. 저도 세 가지 질문이 있는데요. 먼저, 올해 NGP 신규 플랫폼 론칭 계획 관련해서 공유해 주시면 감사드리겠고요. 두 번째는 지금 이 지정학적 리스크가 좀 장기화가 되고 있는 것 같습니다, 예상 대비. 그래서 저희가 이제 메인 시장인 중동 쪽에 판매라든지 유통, 마케팅 이런 전반적인 전략 변화의 여부가 좀 있으실지가 또 궁금하고요. 마지막으로는 앞서 말씀해 주시긴 했는데 건기식 관련해서 Altria하고 지금 진행하시는 미국 건기식 사업 진출이라든지, 아니면 원료 B2B 사업 관련해서 업데이트 같이 주시면 감사드리겠습니다.

Sang-hoon Cho: [Foreign language]

Speaker #3: 두 번째는 지금 이 지정학적 리스크가 좀 장기화되고 있는 것 같습니다, 예상 대비. 그래서 저희가 이제 메인 시장이 중동 쪽에, 판매라든지 유통, 마케팅 이런 전반적인 전략 변화의 여부가 좀 있으실지가 또 궁금하고요.

Speaker #3: 마지막으로는, 뭐 앞서 말씀해 주시긴 했는데, 건기식 관련해서 알트리아하고 지금 진행하시는 미국 건기식 사업 진출이라든지, 아니면 원료 B2B 사업 관련해서 좀 업데이트 같이 주시면 감사드리겠습니다.

Speaker #2: Thank you for taking my question. I am 조상훈 from Shinhan Investment & Securities. I have three questions for you today. I would like to understand your plans for the new MZP platform rollout.

Aaron Lee: Thank you for taking my question. I am Cho Sang-hoon from Shinhan Investment & Securities. I have three questions for you today. I would like to understand about your plans on new NGP platform rollout. Second question is, it seems like the geopolitical risk is extending much more than we had originally expected. I'd like to know what implication it has on your strategies regarding the Middle Eastern market in terms of sales, distribution, as well as your marketing plans. Third question has to do with your HFF business. Would like to get some update on how you're collaborating with Altria for your business endeavors in the US. Can you also provide us an update with your raw material B2B business?

[Translator 2]: Thank you for taking my question. I am Cho Sang-hoon from Shinhan Investment & Securities. I have three questions for you today. I would like to understand about your plans on new NGP platform rollout. Second question is, it seems like the geopolitical risk is extending much more than we had originally expected. I'd like to know what implication it has on your strategies regarding the Middle Eastern market in terms of sales, distribution, as well as your marketing plans. Third question has to do with your HFF business. Would like to get some update on how you're collaborating with Altria for your business endeavors in the US. Can you also provide us an update with your raw material B2B business?

Speaker #2: And the second question is, it seems like the geopolitical risk is extending much more than we had originally expected. I'd like to know what implication this has on your strategies regarding the Middle Eastern market in terms of sales, distribution, as well as your marketing plans.

Speaker #2: The third question has to do with your HFF business. I would like to get some updates on how you're collaborating with Altria for your business endeavors in the US. Also, can you provide us with an update on your raw material B2B business?

Aaron Lee: 네, 첫 번째 질문인 올해 NGP 신규 플랫폼 론칭 계획에 대해서는 NGP 사업본부장님께서, 두 번째 질문인 지정학적 리스크 장기화에 따른 중동 지역의 전략 변화 여부에 대해서는 해외사업본부장님께서, 그리고 세 번째, Altria사와 진행하는 미국 건기식 사업 진출 및 원료 B2B 사업 관련 업데이트는 전략기획본부장님께서 답변드리도록 하겠습니다.

Aaron Lee: [Foreign language]

Speaker #2: 네, 첫 번째 질문인 올해 MZP 신규 플랫폼 런칭 계획에 대해서는 MZP 사업 본부장님께서, 두 번째 질문인 지정학적 리스크 장기화에 따른 중동 지역의 전략 변화 여부에 대해서는 해외사업 본부장님께서, 그리고 세 번째 알트리아사와 진행하는 미국 건기식 사업 진출 및 원료 B2B 사업 관련 업데이트는 전략기획 본부장님께서 답변드리도록 하겠습니다.

Speaker #3: 안녕하십니까. MZP 사업 본부장 김동필입니다. 질의하신 H&B 신규 플랫폼 출시 계획 및 기대 효과에 대해서 말씀드리겠습니다. 회사는 소비자 니즈를 반영한 신규 플랫폼 출시를 통해서 MZP의 포트폴리오 경쟁력을 지속적으로 강화할 계획을 가지고 있습니다.

Dong Pil Kim: 안녕하십니까. NGP 사업본부장 김동필입니다. 질의하신 HNB 신규 플랫폼 출시 계획 및 기대 효과에 대해서 말씀드리겠습니다. 회사는 소비자 니즈를 반영한 신규 플랫폼 및 스틱 출시를 통해서 NGP의 포트폴리오 경쟁력을 지속적으로 강화할 계획을 가지고 있습니다. 국내의 경우에는 새로운 가열 기술을 적용한 신규 플랫폼을 3분기 중에 출시할 예정입니다. 신규 플랫폼의 경우에는 신규 소비자 유입에 긍정적으로 작용되어 HNB 침투율 확대에 기여할 것으로 예상하고 있습니다. 해외의 경우에도 시장 특성에 맞춰서 플랫폼 포트폴리오를 지속적으로 확대하고 있습니다. 주력 시장인 러시아의 경우에는 금년 6월에 업그레이드된 lil SOLID 4.0 출시와 더불어서 유통 커버리지를 전국으로 확대하는 한편, 소비자의 선택의 폭을 넓히기 위해서 스틱 신제품도 지속적으로 확대할 계획을 가지고 있습니다. 해외 시장에서도 회사는 플랫폼의 경쟁력을 지속적으로 강화해 나갈 예정입니다. 이상입니다.

Dong-Pil Kim: [Foreign language]

Speaker #3: 국내의 경우에는 새로운 가열 기술을 적용한 신규 플랫폼을 3분기 중에 출시할 예정입니다. 신규 플랫폼의 경우에는 신규 소비자 유입에 긍정적으로 작용되어 H&B 침투율 확대에 기여할 것으로 예상하고 있습니다.

Speaker #3: 해외의 경우에도 시장 특성에 맞추어서 플랫폼 포트폴리오를 지속적으로 확대하고 있습니다. 주력 시장인 러시아의 경우에는 금년 6월에 업그레이드된 솔리드 4.0 출시와 더불어서 유통 커버리지를 전국으로 확대하는 한편, 소비자의 선택의 폭을 넓히기 위해서 저희들이 스틱 신제품도 지속적으로 확대할 계획을 가지고 있습니다.

Speaker #3: 해외 시장에서도 해외 회사는 플랫폼의 경쟁력을 지속적으로 강화해 나갈 예정입니다. 이상입니다.

Speaker #2: I am 김동필, MZP Chief, responding to your question about our rollout plans for the new platform. The company will continuously strengthen our MZP portfolio by rolling out new platforms, as well as introducing sticks that really incorporate the needs of our consumers.

Aaron Lee: I am Kim Dong-pil, NGP Chief, responding to your question about our rollout plan for new platform. Now, company will continuously strengthen our NGP portfolio by rolling out new platforms as well as introducing sticks that really incorporate the needs of our consumers. In the case of the domestic market, we will be introducing a new platform during Q3 that uses the new heating technology. In the case of these new platforms, it will truly support and help acquiring new consumers, and it will also contribute to expanding the penetration rate of heat-not-burn products. In the case of the overseas market, we are also continuously expanding on our platform portfolio that best incorporates the market characteristics. Russia being our core market, in June, we released lil SOLID 4.0, we've also expanded on our distribution coverage.

[Translator 2]: I am Kim Dong-pil, NGP Chief, responding to your question about our rollout plan for new platform. Now, company will continuously strengthen our NGP portfolio by rolling out new platforms as well as introducing sticks that really incorporate the needs of our consumers. In the case of the domestic market, we will be introducing a new platform during Q3 that uses the new heating technology. In the case of these new platforms, it will truly support and help acquiring new consumers, and it will also contribute to expanding the penetration rate of heat-not-burn products. In the case of the overseas market, we are also continuously expanding on our platform portfolio that best incorporates the market characteristics. Russia being our core market, in June, we released lil SOLID 4.0, we've also expanded on our distribution coverage.

Speaker #2: In the case of the domestic market, we will be introducing a new platform during the third quarter that uses the new heating technology. In the case of these new platforms, they will truly support and help acquire new consumers, and will also contribute to expanding the penetration rate of heat-not-burn products.

Speaker #2: In the case of the overseas market, we are also continuously expanding our platform portfolio to best incorporate the market characteristics. Russia being our core market, in June we released SOLID 4.0, and we've also expanded our distribution coverage. In order to provide more choice to our consumers, we have plans to continuously adopt and introduce new stick products.

Aaron Lee: In order to provide more choice to our consumers, we have plans to continuously adopt and introduce new stick products. In the global overseas market, we also have plans to further strengthen our competitiveness in terms of the platform that we offer.

[Translator 2]: In order to provide more choice to our consumers, we have plans to continuously adopt and introduce new stick products. In the global overseas market, we also have plans to further strengthen our competitiveness in terms of the platform that we offer.

Speaker #2: So, in the global overseas market, we also have plans to further strengthen our competitiveness in terms of the platform that we offer.

Speaker #3: 해외사업본부장 권민석입니다. 질의하신 지정학적 리스크 장기화에 대한 회사 전략에 대해 말씀드리겠습니다. 현재 중동 매출은 전체 해외 관련 매출의 약 20% 수준입니다.

Min Suk Kwon: 해외사업본부장 권민석입니다. 질의하신 지정학적 리스크 장기화에 대한 회사 전략에 대해 말씀드리겠습니다. 현재 중동 매출은 해외 관련 매출의 약 20% 수준입니다. 과거 대비 비중이 많이 낮아졌고요. 지역 포트폴리오가 다변화되는 만큼 중동 사업이 전체 해외 관련 실적에 미치는 영향은 제한적이라고 판단을 하고 있습니다. 전쟁 발발 직후 신속하게 다양한 대안 루트를 확보를 하였고, 공급망을 안정적으로 관리해 왔습니다. 그 결과 올해 상반기에도 현지 판매가 견조한 성장세를 이어나가고 있습니다. 원가 측면에서도 그 영향을 제한적으로 보고 있습니다. 핵심 원부자재는 장기 계약과 가격 협상을 통해 안정적으로 관리하고 있습니다. 운송비 역시 전체 매출에서 차지하는 비중이 크지 않아서 수익성에 미치는 영향은 제한적입니다. 회사는 앞으로도 지정학적 리스크에 대한 선제적 대응, 안정적 공급망 운영을 바탕으로 중동 지역에서의 판매 성장세를 이어나갈 계획입니다. 이상입니다.

Min-Seok Kwon: [Foreign language]

Speaker #3: 과거 대비 비중이 많이 낮아졌고요. 지역 포트폴리오가 다변화되는 만큼 중동 사업이 전체 해외 관련 실적에 미치는 영향은 제한적이라고 판단하고 있습니다. 전쟁 발발 직후 신속하게 다양한 대안 루트를 확보하였고, 공급망을 안정적으로 관리해 왔습니다.

Speaker #3: 그 결과, 올해 상반기에도 현지 판매가 견조한 성장세를 이어나가고 있습니다. 원가 측면에서도 그 영향은 제한적으로 보고 있습니다. 핵심 원부자재는 장기 계약과 가격 협상을 통해 안정적으로 관리하고 있습니다.

Speaker #3: 그 운송비 역시 전체 매출에서 차지하는 비중이 크지 않아서 수익성에 미치는 영향은 제한적입니다. 회사는 앞으로도 지정학적 리스크에 대한 선제적 대응과 안정적인 공급망 운영을 바탕으로 중동 지역에서의 판매 성장세를 이어나갈 계획입니다.

Speaker #3: 이상입니다.

Speaker #2: I am 권민석, Chief of Global Business, responding to your question about geopolitical risk. Revenue from the Middle Eastern market is around 20% of our global CC sales, so it was lower than the levels of the past.

Aaron Lee: I'm Kwon Min-seok, Chief of Global Business, responding to your question about the geopolitical risk. Revenue from Middle Eastern market is around 20% of our global CC sales, so it was lower than the levels of the past. We have actually regionally diversified portfolio, so the impact from the Middle Eastern geopolitical conflict on our global CC performance is somewhat constrained or limited. After the war broke out, we very quickly found alternative transfer routes and managed stable operation of the overall supply chain. As a result, we were able to drive a healthy and solid sales growth in H1. On the cost side, the impact is also quite limited because although there are some price pressures on the raw materials, core material price is actually stably managed based on the long-term contract that we have and subject to the price negotiations.

[Translator 2]: I'm Kwon Min-seok, Chief of Global Business, responding to your question about the geopolitical risk. Revenue from Middle Eastern market is around 20% of our global CC sales, so it was lower than the levels of the past. We have actually regionally diversified portfolio, so the impact from the Middle Eastern geopolitical conflict on our global CC performance is somewhat constrained or limited. After the war broke out, we very quickly found alternative transfer routes and managed stable operation of the overall supply chain. As a result, we were able to drive a healthy and solid sales growth in H1. On the cost side, the impact is also quite limited because although there are some price pressures on the raw materials, core material price is actually stably managed based on the long-term contract that we have and subject to the price negotiations.

Speaker #2: We have actually regionally diversified portfolio, so the impact from the Middle Eastern geopolitical conflict on our global CC performance is somewhat constrained or limited.

Speaker #2: And after the war broke out, we very quickly found alternative transport routes and managed stable operation of the overall supply chain. As a result, we were able to drive healthy and solid sales growth in the first half of the year.

Speaker #2: On the cost side, the impact is also quite limited because, although there are some price pressures on the raw materials, core material prices are actually stably managed based on the long-term contract that we have, and are subject to price negotiations.

Aaron Lee: Transport costs also account for a very small portion of the entire cost base. Going forward, to cater to or to respond to the geopolitical risk, we will continue to take on a preemptive response and based on stable management of our supply chain, we will continue on with an uptrend in the Middle Eastern market.

[Translator 2]: Transport costs also account for a very small portion of the entire cost base. Going forward, to cater to or to respond to the geopolitical risk, we will continue to take on a preemptive response and based on stable management of our supply chain, we will continue on with an uptrend in the Middle Eastern market.

Speaker #2: Transport costs also also account for a very small portion of the entire cost base. Going forward, you know, to cater to or to respond to the geopolitical risk, we will continue to take on a preemptive response and base based on stable management of our supply chain we will continue on with an uptrend in the Middle Eastern market.

Speaker #3: 저렇게 본부장 윤영찬입니다. 알트리아 협력 음료 사업 및 원료 B2B 사업 추진 계획에 대해 말씀드리겠습니다. 회사는 건기식 사업을 B2C와 B2B를 함께 육성하는 방향으로 추진하고 있습니다.

Young Yoon: 전략기획본부장 윤영찬입니다. Altria 협력 음료 사업 및 원료 B2B 사업 추진 계획에 대해 말씀드리겠습니다. 회사는 건기식 사업을 B2C와 B2B를 함께 육성하는 방향으로 추진하고 있습니다. 우선 Altria사와 협력하는 음료 사업의 경우 지난 6월부터 미국 시장에서 테스트 마켓을 진행하고 있습니다. 올해 4분기까지 에너지 드링크 등 총 5개 제품에 대한 테스트를 완료한 후 본격적인 제품 출시를 추진할 계획입니다. 원료 B2B 사업에서도 사업 가능성을 확인하기 위한 다양한 시도를 이어가고 있습니다. 해외에서는 중국 스타벅스에 홍삼 원료를 공급해 신규 에너지 드링크를 출시하는 등 의미 있는 레퍼런스를 확보했습니다. 국내에서는 기존의 정관장 브랜드 자산을 활용해 이마트, 롯데칠성, 신라 면세점 등 주요 F&B 기업과 유통 채널에 홍삼 원료를 공급하고 콜라보 제품을 출시하거나 PB 상품으로 개발하는 등 사업 영역을 확대하고 있습니다. 회사는 이러한 초기 협업 경험을 바탕으로 주요 F&B 기업과의 원료 공급 및 공동 제품 개발을 확대해 나갈 계획입니다.

Young-Chan Yoon: [Foreign language]

Speaker #3: 우선, 알트리아사와 협력하는 음료 사업의 경우, 지난 6월부터 미국 시장에서 테스트 마켓을 진행하고 있습니다. 올해 4분기까지 에너지 드링크 등 총 다섯 개 제품에 대한 테스트를 완료한 후, 본격적인 제품 출시를 추진할 계획입니다.

Speaker #3: 원료 B2B 사업에서도 사업 가능성을 확인하기 위한 다양한 시도를 이어가고 있습니다. 해외에서는 중국 스타벅스의 홍삼 원료를 공급해 신규 에너지 드링크를 출시하는 등 의미 있는 레퍼런스를 확보했습니다.

Speaker #3: 국내에서는 기존의 정관장 브랜드 자산을 활용해 이마트, 롯데, 칠성, 신라, 면세점 등 주요 F&B 기업과 유통 채널에 홍삼 원료를 공급하고, 콜라보 제품을 출시하거나 PB 상품으로 개발하는 등 사업 영역을 확대하고 있습니다.

Speaker #3: 회사는 이러한 초기 협업 경험을 바탕으로 주요 F&B 기업과의 원료 공급 및 공동 제품 개발을 확대해 나갈 계획입니다.

Speaker #2: Responding to your question about our cooperation with Altria and the health function of the food category, as well as the raw material B2B business, I am CSO Yoon Young-chan.

Aaron Lee: Responding to your question about our cooperation with Altria and the health functional foods category, as well as raw material B2B business. I am CSO Yoon Young-chan. The company's approach to HFF is to nurture both B2C and B2B business at the same time. We are cooperating with Altria in our beverage business and have started test marketing in the US market since June, and we will complete the market test of our five products, including energy drinks, by Q4, and will start to push for a full product launch. In B2B, the material B2B business, we are also testing various different business opportunities and looking at business feasibility as well. We are building meaningful references globally as we supplied red ginseng to Starbucks China to be used in a new energy drink product, and also in Korea using the brand equity of 정관장.

[Translator 2]: Responding to your question about our cooperation with Altria and the health functional foods category, as well as raw material B2B business. I am CSO Yoon Young-chan. The company's approach to HFF is to nurture both B2C and B2B business at the same time. We are cooperating with Altria in our beverage business and have started test marketing in the US market since June, and we will complete the market test of our five products, including energy drinks, by Q4, and will start to push for a full product launch. In B2B, the material B2B business, we are also testing various different business opportunities and looking at business feasibility as well. We are building meaningful references globally as we supplied red ginseng to Starbucks China to be used in a new energy drink product, and also in Korea using the brand equity of 정관장.

Speaker #2: The company's approach to HFF is to nurture both B2C and B2B business at the same time. We are cooperating with Altria in our beverage business and have started test marketing in the US market since June, and we will complete the market test of our five products including energy drinks by the fourth quarter, and we'll start to push for a full product launch.

Speaker #2: In the material B2B business, we are also testing various different business opportunities and looking at business feasibility as well. We are building meaningful references globally, as we supplied red ginseng to Starbucks China to be used in a new energy drink product. Also, in Korea, using the brand equity of 정관장, we're expanding the business scope by supplying red ginseng to major F&B companies like Emart, 롯데칠성, and 신라 DFS.

Aaron Lee: We're expanding the business scope by supplying red ginseng to major F&B companies like E-mart, Lotte Chilsung, and Shilla DFS, and also rolling out collaboration products or private brand PB products. Based upon such initial collaboration, we are continuously going to expand joint development with major F&B companies going forward in developing and also in supplying the products.

[Translator 2]: We're expanding the business scope by supplying red ginseng to major F&B companies like E-mart, Lotte Chilsung, and Shilla DFS, and also rolling out collaboration products or private brand PB products. Based upon such initial collaboration, we are continuously going to expand joint development with major F&B companies going forward in developing and also in supplying the products.

Speaker #2: And also rolling out collaboration products, or private brand (PB) products. Based upon such initial collaboration, we are continuously going to expand joint development with major F&B companies going forward, in developing and also in supplying the products.

Speaker #1: 마지막으로 질문해 주실 분은 한화투자증권의 한유정민입니다. The last question will be presented by 유정한 from Hanwha Investment & Securities. Please go ahead with your question.

Aaron Lee: 마지막으로 질문해 주실 분은 한화투자증권의 한유정 님입니다.

Operator: [Foreign language]

Operator: The last question will be presented by You Jeong Han from Hanwha Investment & Securities. Please go ahead with your question.

[Translator 1]: The last question will be presented by You Jeong Han from Hanwha Investment & Securities. Please go ahead with your question.

Speaker #4: 안녕하세요. 질문 기회 주셔서 감사하고, 호실적 축하드립니다. 저는 총 세 가지 질문이 있습니다. 첫 번째로는 저희 해외 공장 가동 현황이랑, 그리고 해외 공장 안정화 후에 비용 절감 효과가 어느 정도 되는지 궁금하고요.

Han Yoo-jung: 안녕하세요. 질문 기회 주셔서 감사하고 호실적 축하드립니다. 저는 총 세 가지 질문이 있습니다. 첫 번째로는 저희 해외 공장 가동 현황이랑 그리고 해외 공장 안정화 후에 비용 절감 효과가 어느 정도 되는지 궁금하고요. 두 번째로는 하반기에도 이익 증가율이 매출 증가율을 상회할 수 있을지 컬러 주시면 감사하겠고요. 세 번째로는 방금 답변 주신 거의 연장선일 것 같은데, 저희 건기식에서 2분기에 믿을 수 있는 맛이 나오는 게 오랜만인 것 같아요. 그래서 이런 수익성 개선 흐름이 지속 가능할 수 있을지 질문드리고 싶습니다. 감사합니다.

Han Yoo-jung: [Foreign language]

Speaker #4: 두 번째로는 하반기에도 이익 증가율이 매출 증가율을 상회할 수 있을지 컬러 주시면 감사하겠고요. 세 번째로는 방금 답변 주신 거의 연장선일 것 같은데, 저희 건기식에서 2분기에 미드신들 매출이 나오는 게 오랜만인 것 같아요.

Speaker #4: 그래서 이런 수익성 개선 흐름이 지속 가능할 수 있을지 질문드리고 싶습니다. 감사합니다.

Speaker #2: I am Han Yoo-jung from Hanwha Securities. I have three questions that I would like to ask. First is an update on your overseas plant utilization, and also, what's the potential cost savings that you can gain from this?

Aaron Lee: I am Han Yoo-jung from Hanwha Securities. I have three questions that I would like to ask. First is an update on your overseas plant utilization also what's the potential cost savings that you can gain from this. Second is, in the H2 of the year, do you believe that your operating profit improvement will continue to outpace your top-line growth? My third question is, it's a follow-up question from the previous question that was asked. In your HFF business, it's been a while since we've seen a mid-single-digit profit, and you were able to achieve that in the Q2. So I'm wondering whether such improvement in the bottom line can continue onwards into the future.

[Translator 2]: I am Han Yoo-jung from Hanwha Securities. I have three questions that I would like to ask. First is an update on your overseas plant utilization also what's the potential cost savings that you can gain from this. Second is, in the H2 of the year, do you believe that your operating profit improvement will continue to outpace your top-line growth? My third question is, it's a follow-up question from the previous question that was asked. In your HFF business, it's been a while since we've seen a mid-single-digit profit, and you were able to achieve that in the Q2. So I'm wondering whether such improvement in the bottom line can continue onwards into the future.

Speaker #2: And second, in the second half of the year, do you believe that your operating profit improvement will continue to outpace your top-line growth?

Speaker #2: And my third question is a follow-up from the previous question that was asked. In your HFF business, it's been a while since we've seen a mid-single-digit profit, and you were able to achieve that in the second quarter.

Speaker #2: And so I'm wondering whether such improvement in the bottom line can continue onward into the future.

Speaker #1: 네, 첫 번째 질문인 해외 공장 가동 현황 및 해외 공장 안정화 후 비용 절감 효과에 대해서는 전략 기획 본부장님께서, 두 번째 질문인 영업 하반기에도 영업 이익 증가율이 매출 증가율을 상회하는 수익성 중심 성장이 이어질 것인지에 대해서도 전략 기획 본부장님께 답변 주시고요.

Aaron Lee: 네, 첫 번째 질문인 해외 공장 가동 현황 및 해외 공장 안정화 후 비용 절감 효과에 대해서는 전략기획본부장님께서, 두 번째 질문인 하반기에도 영업이익 증가율이 매출 증가율을 상회하는 수익성 중심 성장이 이어질 것인지에 대해서도 전략기획본부장님께서 답변주시고요. 세 번째 질문인 건기식에 지금 2분기 실적과 같이 이익 흐름이 하반기에도 지속 가능한지에 대해서는 KGC 전략본부장님께서 답변주시겠습니다.

Aaron Lee: [Foreign language]

Speaker #1: 세 번째 질문인 건기식의 이번 2분기 실적과 같이 이익 흐름이 하반기에도 지속 가능한지에 대해서는 KDC 전략본부장님께서 답변 주시겠습니다.

Speaker #3: 전략기획본부장 윤영찬입니다. 질의하신 해외 공장 가동 현황 및 예상 비용 절감 효과에 대해 말씀드리겠습니다. 회사는 글로벌 생산체제로의 전환을 차질 없이 추진하고 있습니다.

Young Yoon: 전략기획본부장 윤영찬입니다. 질의하신 해외 공장 가동 현황 및 예상 비용 절감 효과에 대해 말씀드리겠습니다. 회사는 글로벌 생산 체제로의 전환을 차질 없이 추진하고 있습니다. 지난해 카자흐스탄 공장을 준공한 데 이어 올해는 인도네시아 제2공장을 가동 시작했고요. 해외 생산 비중도 지난해 49%에서 2028년까지 60% 이상으로 확대해 생산 효율성과 글로벌 공급망 경쟁력을 지속적으로 높여나갈 계획입니다. 비용 측면에서도 점진적인 개선 효과를 기대하고 있습니다. 인도네시아 공장은 국내 대비 낮은 인건비를 바탕으로 제조 원가를 약 20% 절감할 수 있을 것으로 예상되며, 카자흐스탄 공장은 유라시아경제연합 역내 무관세 공급을 통해 올해부터 관세 절감 효과가 본격적으로 나타날 것으로 기대하고 있습니다. 특히 이러한 비용 절감 효과는 공장 가동률이 안정화되고 생산 물량이 확대될수록 더욱 커질 것으로 보고 있습니다. 회사는 해외 관련 수요 증가에 맞춰 인도네시아 초고속기 설비 도입 등 생산 효율화 투자도 지속적으로 추진해 원가 경쟁력을 추가로 높여나갈 계획입니다.

Young-Chan Yoon: [Foreign language]

Speaker #3: 지난해 카자흐스탄 공장을 준공한 데 이어, 올해는 인도네시아 제2공장을 가동 시작했습니다. 해외 생산 비중도 지난해 49%에서 2028년까지 60% 이상으로 확대해 생산 효율성과 글로벌 공급망 경쟁력을 지속적으로 높여 나갈 계획입니다.

Speaker #3: 비용 측면에서도 점진적인 개선 효과를 기대하고 있습니다. 인도네시아 공장은 국내 대비 낮은 인건비를 바탕으로 제조 원가를 약 20% 절감할 수 있을 것으로 예상되며, 카자흐스탄 공장은 유라시아 경제연합 역내 무관세 공급을 통해 올해부터 관세 절감 효과가 본격적으로 나타날 것으로 기대하고 있습니다.

Speaker #3: 특히 이러한 비용 절감 효과는 공장 가동률이 안정화되고 생산 물량이 확대될수록 더욱 커질 것으로 보고 있습니다. 회사는 해외 관련 수요 증가에 맞춰 인도네시아 초고속기 설비 도입 등 생산 효율화 투자도 지속적으로 추진해 원가 경쟁력을 추가로 높여 나갈 계획입니다.

Speaker #2: I am CSO 윤영찬, responding to your question about the update on our overseas plan and also expected cost savings. I can tell you that the company is on a smooth sail as we migrate to global production.

Aaron Lee: I am CSO Yoon Young-chan, responding to your question about the update of our overseas plant also expected cost savings. I can tell you that the company is on a smooth sail as we migrate to global production. Following the completion of Kazakhstan plant last year, our number 2 Indonesian plant commenced its operations this year. Global share of our total production will be scaled from 49% of last year to more than 60% by 2028. Through such expansionary implementation of production, we are going to further strengthen our production efficiency also the competitiveness of our global supply chain. On the cost side, we are also looking forward to a gradual improvement. We expect lower manufacturing costs by about 20% from Indonesia due to lower labor cost.

[Translator 2]: I am CSO Yoon Young-chan, responding to your question about the update of our overseas plant also expected cost savings. I can tell you that the company is on a smooth sail as we migrate to global production. Following the completion of Kazakhstan plant last year, our number 2 Indonesian plant commenced its operations this year. Global share of our total production will be scaled from 49% of last year to more than 60% by 2028. Through such expansionary implementation of production, we are going to further strengthen our production efficiency also the competitiveness of our global supply chain. On the cost side, we are also looking forward to a gradual improvement. We expect lower manufacturing costs by about 20% from Indonesia due to lower labor cost.

Speaker #2: Following the completion of the Kazakhstan plant last year, our number two Indonesian plant commenced its operations this year, and the global share of our total production will be scaled from 49% last year to more than 60% by 2028.

Speaker #2: With such expansionary implementation of production, we are going to further strengthen our production efficiency and also the competitiveness of our global supply chain. On the cost side, we are also looking forward to a gradual improvement.

Speaker #2: We expect lower manufacturing costs by about 20% from Indonesia due to lower labor costs, and we will start to see cost savings from the Kazakhstan plant start to emerge starting this year, benefiting from the Eurasia tariff expansion.

Aaron Lee: We will start to see cost savings from Kazakhstan plant start to emerge starting this year, benefiting from the Eurasia tariff exemption. Impact of such cost saving will also continue to amplify once utilization of the plant stabilizes and production scales. Also, in tandem with our overseas demand growth, we will be installing high-speed equipment in our Indonesian plant. We will invest into enhancing production efficiency also lifting our cost competitiveness.

[Translator 2]: We will start to see cost savings from Kazakhstan plant start to emerge starting this year, benefiting from the Eurasia tariff exemption. Impact of such cost saving will also continue to amplify once utilization of the plant stabilizes and production scales. Also, in tandem with our overseas demand growth, we will be installing high-speed equipment in our Indonesian plant. We will invest into enhancing production efficiency also lifting our cost competitiveness.

Speaker #2: Tariff exemption, excuse me. The impact of such cost savings will also continue to amplify once utilization of the plant stabilizes and production scales. Also, in tandem with our overseas demand growth, we will be installing high-speed equipment in our Indonesian plant, and we will invest in enhancing production efficiency and further lifting our cost competitiveness.

Speaker #3: 전략기획본부장입니다. 질의하신 하반기 수익성 중심 성장 지속 가능성에 대해 말씀드리겠습니다. 상반기에는 매출이 전년 대비 12.1% 성장한 가운데, 영업이익은 22.6% 증가하며 매출 성장률을 상회하는 이익 중심 성장을 달성했습니다.

Young Yoon: 전략본부장입니다. 질의하신 하반기 수익성 중심 성장 지속 가능성에 대해 말씀드리겠습니다. 상반기에는 매출이 전년 대비 12.1% 성장한 가운데 영업이익은 22.6% 증가하며 매출 성장률을 상회하는 이익 중심 성장을 달성했습니다. 이는 일회성 요인이 아니라 제품 믹스 개선과 원가 경쟁력 강화에 기반한 구조적인 수익성 개선의 결과입니다. 금일 상향 제시한 연간 가이던스 역시 이러한 흐름이 하반기에도 이어질 것으로 전제하고 있습니다. 핵심 사업인 담배와 건기식 모두 매출 성장과 함께 수익성 개선이 지속될 것으로 기대하고 있습니다. 해외 관련은 단가 인상 및 믹스 개선을 통한 ASP 상승이 지속될 전망이며, 국내 NGP도 lil AIBLE 플랫폼 확대와 고가 스틱 믹스 개선 효과가 지속되며 이익 개선에 기여할 것으로 전망하고 있습니다.

Young-Chan Yoon: [Foreign language]

Speaker #3: 이는 일회성 요인이 아니라, 제품 믹스 개선과 원가 경쟁력 강화에 기반한 구조적인 수익성 개선의 결과입니다. 금일 상향 제시한 연간 가이던스 역시 이러한 흐름이 하반기에도 이어질 것으로 전제하고 있습니다.

Speaker #3: 핵심 사업인 담배와 건기식 모두 매출 성장과 함께 수익성 개선이 지속될 것으로 기대하고 있습니다. 해외 관련은 단가 인상 및 믹스 개선을 통한 ASP 상승이 지속될 전망이며, 국내 NGP도 릴레이블 플랫폼 확대와 고가 스틱 믹스 개선 효과가 지속되며 이익 개선에 기여할 것으로 전망하고 있습니다.

Speaker #2: This is the CSO again, responding to your question regarding our profit-driven growth going forward. If you look at the first half of this year, revenue recorded 12.1% year-over-year growth, while operating profit grew 22.6%, demonstrating that we achieved profit-led growth that exceeded the top-line uptrend.

Aaron Lee: This is the CSO again, responding to your question relating to our profit-driven growth going forward. If you look at the H1 of this year, revenue recorded 12.1% year-over-year growth, while operating profit grew 22.6%, demonstrating that we achieved profit-led growth that exceeded the top-line uptrend. This is because of improvements in product mix, stronger cost competitiveness, which is underpinned by structural profitability improvement rather than it being a one-time event. Today, we shared with you an annual guidance, which has been revised upward, and that revision is based on the premise that such trend will continue onwards into the H2 of the year. We expect our core businesses of tobacco and HFF business will see both top-line and bottom-line improvements. On higher unit price and better mix, Global CC ASP is also expected to uptrend.

[Translator 2]: This is the CSO again, responding to your question relating to our profit-driven growth going forward. If you look at the H1 of this year, revenue recorded 12.1% year-over-year growth, while operating profit grew 22.6%, demonstrating that we achieved profit-led growth that exceeded the top-line uptrend. This is because of improvements in product mix, stronger cost competitiveness, which is underpinned by structural profitability improvement rather than it being a one-time event. Today, we shared with you an annual guidance, which has been revised upward, and that revision is based on the premise that such trend will continue onwards into the H2 of the year. We expect our core businesses of tobacco and HFF business will see both top-line and bottom-line improvements. On higher unit price and better mix, Global CC ASP is also expected to uptrend.

Speaker #2: And this is because of improvements in product mix and stronger cost competitiveness, which is underpinned by structural profitability improvements, rather than it being a one-time event.

Speaker #2: And today, we shared with you annual guidance, which we have revised upward, and that revision is based on the premise that such trends will continue onwards into the second half of the year.

Speaker #2: And we expect our core businesses of tobacco and HFF business will see both top-line and bottom-line improvements. And on higher unit price and better mix, global CCASP is also expected to uptrend. For domestic NGP business, on little-able platform expansion and high ASP stick mix improvement, we expect profit contributions will continue onwards.

Aaron Lee: For domestic NGP business, on lil AIBLE platform expansion and high ASP stick mix improvement, we expect profit contributions will continue onwards.

[Translator 2]: For domestic NGP business, on lil AIBLE platform expansion and high ASP stick mix improvement, we expect profit contributions will continue onwards.

Speaker #3: KDC 전략본부장 한승준입니다. 마지막 질문이신 건기식 2분기 호실적 및 수익성 중심 성장 가능성에 대해서 답변드리도록 하겠습니다. 2026년에는 건기식 사업에 있어서 국내 사업 전반의 비용 효율화 노력을 지속하는 가운데, 브랜드 중심 경영으로 글로벌 메가 브랜드를 육성하여 브랜드 경쟁력에 기반한 양적, 질적인 성장을 동시에 달성하겠습니다.

Seung Han: KGC 전략본부장 한승준입니다. 마지막 질문이신 건기식 2분기 호실적 및 수익성 중심 성장 가능성에 대해서 답변드리도록 하겠습니다. '26년에는 건기식 사업에 있어서 국내 사업 전반의 비용 효율화 노력을 지속하는 가운데, 브랜드 중심 경영으로 글로벌 메가 브랜드를 육성하여 브랜드 경쟁력에 기반한 양적, 질적인 성장을 동시에 달성하겠습니다. 특히 회사는 하반기에도 추석 프로모션에 집중하는 등 수익성 중심의 경영을 지속하도록 하겠습니다. 감사합니다.

Seung Han: [Foreign language]

Speaker #3: 특히 회사는 하반기에도 추석 프로모션에 집중하는 등 수익성 중심의 경영을 지속하도록 하겠습니다. 감사합니다.

Aaron Lee: Yes, I'm from KGC, responding to your question about our outlook for HFF business as we move into H2. In 2026, we are focusing our efforts on gaining cost efficiencies underpinned by the brand equity that we have, and implementing that and incorporating that into our business. Supported by the brand competitiveness, we are going to drive growth in terms of both quality and volume as well. In H2, in time for the Chuseok holidays, we will be running extensive promotions to further drive up profitability.

[Translator 2]: Yes, I'm from KGC, responding to your question about our outlook for HFF business as we move into H2. In 2026, we are focusing our efforts on gaining cost efficiencies underpinned by the brand equity that we have, and implementing that and incorporating that into our business. Supported by the brand competitiveness, we are going to drive growth in terms of both quality and volume as well. In H2, in time for the Chuseok holidays, we will be running extensive promotions to further drive up profitability.

Speaker #2: Yes, I'm from KGC and responding to your question about our outlook for the HFF business as we move into the second half of the year.

Speaker #2: In 2026, we are focusing our efforts on gaining cost efficiencies, underpinned by the brand equity that we have, and implementing that and incorporating it into our business.

Speaker #2: Supported by brand competitiveness, we are going to drive growth in terms of both quality and volume as well. In the second half of the year, in time for the Chuseok holidays, we will be running extensive promotions to further drive up profitability.

Speaker #4: 네, 이상으로 KT&G 2026년 2분기 경영실적 발표 컨퍼런스콜을 모두 마치도록 하겠습니다. 참석해 주신 여러분들께 진심으로 감사드리며, 모두의 건강과 안녕을 기원드립니다. 추가적인 질문은 언제든지 IR센터로 연락 주시기 바랍니다.

Aaron Lee: 네, 이상으로 KT&G 2026년 2분기 경영실적 발표 컨퍼런스 콜을 모두 마치도록 하겠습니다. 참석해 주신 여러분들께 진심으로 감사드리며, 모두의 건강과 안녕을 기원드립니다. 추가적인 질문은 언제든지 IR센터로 연락 주시기 바랍니다. 감사합니다.

Speaker #4: 감사합니다.

Operator: [Foreign language]

Speaker #2: This brings us to the end of the second quarter 2026 earnings conference call of KT&G. Thank you all for joining us today. I wish everyone good health, and if you have any other unanswered questions, please do not hesitate to contact us.

Aaron Lee: This brings us to the end of the Q2 2026 earnings conference call of KT&G. Thank you all for joining us today. I wish everyone good health. If you have any other unanswered questions, please do not hesitate to contact us. Thank you.

[Translator 2]: This brings us to the end of the Q2 2026 earnings conference call of KT&G. Thank you all for joining us today. I wish everyone good health. If you have any other unanswered questions, please do not hesitate to contact us. Thank you.

Browse all earnings call transcripts

Q2 2026 KT&G Corp Earnings Call

Request TrialDemo

KT&G

Earnings