ASIA FRANCHISE BUSINESS UNIT (FBU) Siddharth Varma, Managing Director

Transcription

1 ASIA FRANCHISE BUSINESS UNIT (FBU) Siddharth Varma, Managing Director

2 Yum! Asia FBU: Partnering For Growth China = 3,900 units Thailand = 480 units Asia FBU = 4,500+ units Asia FBU

3 Asia FBU: Collection of Diverse Economies 14 countries from Japan to Indonesia, and Fiji to Vietnam 600+ million population, 300+ million consuming class Population is young and growing 2010F 5 yr CAGR Units 4,500+ 5% System Sales (millions) ~$4,000 6% Operating Profit (millions) $ % Note: The 5 yr CAGR does not include the impact of KFC Taiwan which became part of YRI in 2010

4 Note: Units are 2010 forecast, Asia FBU also includes 312 A&W Restaurants, 62 Taco Bells, and 31 Long John Silvers Asia FBU: Great Brands and Great Partners Countries Units 13 2,804 #1 QSR in 5 markets 11 1,361 #1 Pizza in 9 markets 6 Franchisees Own 75% of Units

5 KFC: Most Loved QSR Refresh the Core An Iconic, Youthful Brand Offer Breakthrough Value Drive Accessibility

6 Pizza Hut: Leader in Casual Dining Premium Pizza More than Pizza Hot and On-Time New Solutions on Food Everyday Value Simplified Low Pricing

7 Phenomenal Sales Growth In Asia FBU Emerging Markets 5-yr System Sales CAGR % 21% 13% 2% Indonesia Malaysia Vietnam Other Dev. Asia (Primarily Japan) Units ,473 Note: Other Emerging Markets include Philippines, Cambodia, and Thailand A&W. Total Emerging Market 5 year CAGR = 15%.

8 Indonesia: Largest Asia FBU Emerging Market Tremendous Long Term Opportunity For Yum! Population = 240 million Median Age = 28 Urban Population = 52% Disposable Income Per Capita = $2,500 Eating out market = $32 billion (branded chain = $2 billion)

9 Iconic Restaurants in Indonesia

10 Pizza Hut is Destination Dining in Indonesia

11 Yum Indonesia: Defining the Category Market Position #1 #1 CDR Units* System Sales* (millions) $317 $141 5-yr CAGR 23% 18% Top Competition McDonald s = 98 Units Hoka Hoka Bento = 115 Units CFC = 130 Units Note: Yum! units and sales are 2010 Forecast, Competitor units are 2009 Indonesia also has 198 A&W Restaurants

12 Indonesia: YRI s Largest Developer KFC & Pizza Hut Units 10% CAGR F 1,100 KFC & PH Units by 2015 Note: Indonesia also has 198 A&W Restaurants

13 Vietnam: Fast Growing Emerging Market Population = 88 million Median Age = 27 Urban Population = 28% Disposable Income Per Capita = $1,800 Eating out market = $24 billion (QSR chain $1 billion)

14 Vibrant Assets in Vietnam

15 Vibrant Assets in Vietnam

16 Vietnam: Early Mover Advantage Market Position #1 #1 CDR Units* Launch Year Top Local Competition Pho 24 = 94 Units Lotteria = 70 Units * Yum! units and sales are 2010 Forecast, Competitor units are 2009

17 Vietnam: New Unit Explosion KFC & Pizza Hut Units % CAGR F 200 KFC & PH Units by 2015

18 Malaysia: Emerging Market on the Rise Population = 28 million Median Age = 25 Urban Population = 63% Disposable Income Per Capita = $8,000 Eating out market = $7 billion (branded chain $2 billion)

19 The Look of a Leader in Malaysia

20 The Look of a Leader in Malaysia

21 Malaysia: Dominant Brands Market Position #1 #1 CDR Units* System Sales* (millions) $468 $136 5-yr CAGR 17% 15% Top Competition McDonald s = 194 Units Secret Recipe = 172 units Old Town White Coffee = 152 units Note: Yum! units and sales are 2010 Forecast, Competitor units are 2009

22 Malaysia: Strong Foundation, Solid Growth Ahead KFC & Pizza Hut Units 9% CAGR F 1,000 KFC & PH Units by 2015 Note: Malaysia also has 38 A&W Restaurants

23 Explosive GDP Growth in Emerging Market Asia Projected Nominal GDP (US$ Trillion) U.S. / Euro Area Emerging Market Asia Source: JP Morgan Global Markets Symposium March 2010

24 Asia FBU Has a Long Runway for Growth Yum! Units Per Million People Yum! U.S Asia FBU Source: World Monitor 2010, 2010F Yum! Traditional units

25 Asia FBU: On the Ground Floor of Growth Large, young population that is growing Strong franchise partners who have pioneered markets Market leading brands Large foundation and a long runway for growth

26 Safe Harbor Statement This presentation, any related presentations and the related webcast contain forward-looking statements. We intend all forward-looking statements to be covered by the safe harbor provisions of the Private Securities Litigation Reform Act of Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts. Our forward-looking statements may include, among others, statements regarding unit development, profit growth, EPS growth or certain company initiatives and plans. Our forward-looking statements are subject to risks and uncertainties, which may cause actual results to differ materially from those projected. Factors that can cause our actual results to differ materially include, but are not limited to: economic and political conditions in the countries where we operate; currency exchange and interest rates; commodity, labor and other operating costs; competition, consumer preferences or perceptions; the impact of any widespread illness or food borne illness; the effectiveness of our operating initiatives and marketing; new product and concept development by us and our competitors; the success of our strategies for refranchising and international development; the continued viability of our franchise and license operators; our ability to secure and maintain distribution and adequate supply to our restaurants; publicity that may impact our business and/or industry; pending or future legal claims; our effective tax rates; our actuarially determined casualty loss estimates; government regulations; and accounting policies and practices. You should consult our filings with the Securities and Exchange Commission (including the information set forth under the captions Risk Factors and Forward-Looking Statements in our Annual Report on Form 10-K) for additional detail about factors that could affect our financial and other results. Forward-looking statements are based on current expectations and assumptions and currently available data and are neither predictions nor guarantees of future events or performance. You should not place undue reliance on forward-looking statements, which speak only as of the date hereof. We are not undertaking to update any of these statements.