KT&G (033780) Investor Day 2025 Presentation summary

Global growth and leadership journey

• Achieved strong global CC revenue growth with a 2020-23 CAGR of 4.7% and a 2024 vs. prior year increase of 28.1%.

• Operating profit for global CC rebounded by 60.6% in 2024 vs. prior year and is projected to rise 127.8% in 2025 H1 vs. 2024 H1.

• Shifted to a global-oriented structure, with global manufacturing and local procurement ratios expected to rise significantly by 2025.

• Outperformed KOSPI with a 57.4% increase in stock price and maintained top-tier global credit ratings (S&P A3, Moody's A-, AAA from domestic agencies).

• 2025 outlook targets double-digit operating profit growth and surpassing KRW 6 trillion in revenue.

Driving shareholder value

• Capital allocation strategy redefined to prioritize ROE and ROIC above cost of equity, balancing growth and returns.

• Dividend per share (DPS) set to increase to KRW 6,000 for FY 2025, a 300% increment over the previous year.

• Total shareholder return ratio projected at over 100% of net income, with significant share buybacks and treasury share cancellations.

• Cash return of KRW 3.7 trillion+ planned for 2024-2027, with a payout ratio above 50% and flexible buyback timing.

• Strong cash flow and stable debt ratio below 60% support enhanced shareholder returns.

New collaboration for the next growth

• Entered a global collaboration with Altria for joint acquisition and expansion in the nicotine pouch market.

• Secured leading market positions in Nordic countries and outlined plans for global expansion in Europe, Middle East, South Asia, and APAC.