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  • 1. Appendix
  • 2. Definitions Capital Spending — Includes capital spending, excludes acquisitions of restaurants from franchisees. China Division — Includes mainland China, Thailand and KFC Taiwan businesses. General & Administrative (G&A) Costs — Include general & administrative costs and franchise and license expense. International Division — Countries & territories outside the U.S., excluding China Division, but including Hawaii. Local Currency — Represents the percentage change excluding the impact of foreign currency translation. These amounts are calculated by translating current-year results at prior-year average exchange rates. We believe elimination of the foreign currency translation impact provides better year-to-year comparability of sales trends without the distortion of foreign currency fluctuations. Net Unit Growth – Growth in system restaurants excluding the impact of acquisitions. Operating Margin — Represents operating profit dollars as a percentage of revenue dollars. Reported Currency — Represents the percentage change including the impact of foreign currency translation. All financial numbers in thi d fi il b i this document are in reported currency unless otherwise noted. t i td l th i td New Restaurant Openings — Include unconsolidated affiliates (joint ventures), company-owned and franchise restaurants and exclude license restaurants.
  • 3. Definitions Special Items — Include the GAAP income statement captions of Wrench litigation, AmeriServe and other charges (credits) from 1998-2005 and the cumulative effect of accounting change in 2003, net of tax. For the years 2008 through 2010, special items also include the gain on the sale of our minority interest in our Japan unconsolidated affiliate, U.S. refranchising (gain)/loss, charges relating to U.S. General and Administrative productivity initiatives and realignment of resources, as well as investments in our U.S. Brands. (The Company uses earnings before special items as a key performance measure of results of operations for purposes of evaluating performance internally. This non-GAAP measurement is not intended to replace the presentation of our financial results in accordance with GAAP. Rather, the company believes EPS before special items provides additional information to investors to facilitate the comparison of past and present operations, excluding items that the Company does not believe are indicative of our ongoing operations due to their size and/or nature.) Same-Store-Sales Growth — The estimated growth in sales of all restaurants that have been open one year or more regardless of ownership including unconsolidated affiliates (joint ventures), company-owned, franchise and license restaurants. System R t St Restaurants — I l d unconsolidated affiliates (joint ventures), company-owned, franchise and license t Include lid t d ffili t (j i t t ) df hi d li restaurants. System-Sales Growth includes the results of all restaurants regardless of ownership including unconsolidated affiliates (joint ventures), company-owned, franchise and license restaurants. Sales of unconsolidated affiliates (joint ventures), franchise and license restaurants generate franchise and license fees for the company (typically at a rate of 4% to 6% of sales). Unconsolidated affiliates (joint ventures), franchise and license restaurant sales are not included in company sales we present on the Condensed Consolidated Statements of Income; however, the franchise fees previously defined are included in the company’s revenues. We believe system-sales growth is useful to investors as a significant indicator of the overall strength of our business as it incorporates all our revenue drivers, company and franchise same-store sales as well as new-restaurant development. Total Units – Include unconsolidated affiliates (joint ventures), company-owned, franchise, and license restaurants. Traditional Restaurants — Includes unconsolidated affiliate (joint-venture), company-owned and franchise restaurants, but excludes license restaurants unless noted. (Note: all units referenced in the YRI section are Traditional Restaurants)
  • 4. Two Global Brands YRI System Restaurants By Geography Asia 36% Americas 22% 4,800+ Europe 6,900+ 22% Australia/ New Zealand Taco Bell/ 9% Long John Silver’s/ Silver s/ Middle East/ A&W South Africa 500+ 11% Note: 2007 system restaurants.
  • 5. Highly Diversified Growth Business YRI Overview ’02 – ’07 02 07 # of % of System System Sales Countries Sales CAGR Middle East/Africa 24 12% 24% Europe 30 31% 15% Asia/Australia / 21 38% 8% The Americas 37 19% 8% Note: Includes foreign-currency exchange impact
  • 6. Taco Bell – Key Driver of U.S. Performance U.S. Operating Profit 2008 F 1% Long John Silver’s 8% & KFC A&W 59% Taco Bell 32% Pizza Hut
  • 7. New Restaurant Openings WORLDWIDE 1,785 1,707 1,600+ , 1,554 1,515 1,489 1,498 1,497 1,450 1,438 1,264 1,078 ’98 ’99 ’00 ’01 ’02 ’03 ’04 ’05 ’06 ’07 ’08 F ’09 F Net Unit – +1 +1 – +1 +1 +1 +2 +1 +2 +2 +2 Growth % Note: Forecast rounded to nearest five.
  • 8. New Restaurant Openings CHINA DIVISION 550 506 500+ 409 396 357 302 297 266 167 138 128 ’98 ’99 ’00 ’01 ’02 ’03 ’04 ’05 ’06 ’07 ’08 F ’09 F Net Unit +22 +15 +18 +12 +25 +17 +18 +19 +15 +17 +16 +12 Growth % Note: Forecast rounded to nearest five.
  • 9. New Restaurant Openings YRI DIVISION 900 895 852 811 785 780 775 762 749 720 549 527 ’98 ’99 ’00 ’01 ’02 ’03 ’04 ’05 ’06 ’07 ’08 F ’09 F Net Unit – +3 +5 +5 +4 +3 +3 +4 +3 +4 +4 +4 Growth % Note: Forecast rounded to nearest five.
  • 10. New Restaurant Openings UNITED STATES 587 509 448 447 413 389 373 365 349 340 334 200+ ’98 ’99 ’00 ’01 ’02 ’03 ’04 ’05 ’06 ’07 ’08 F ’09 F Net Unit (1) (1) (1) (2) (2) (1) (1) (1) (2) (1) (1) - Growth % Note: Forecast rounded to nearest five.
  • 11. Same-Store-Sales Growth % WORLDWIDE 4 4 4 4 4 3 3 2 2 1 1 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 2006 2007 2008
  • 12. System-Sales-Growth % CHINA DIVISION 30 29 28 28 25 23 23 19 19 18 19 14 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4TD 2006 2007 2008 Note: Local currency basis.
  • 13. System-Sales Growth % YRI 11 11 10 9 9 9 8 8 8 8 7 6 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 TD 2006 2007 2008 Note: Local currency basis
  • 14. Same-Store-Sales Growth % UNITED STATES 5 3 3 2 2 1 1 1 0 0 (2) (3) Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4TD 2006 2007 2008
  • 15. Restaurant Margin WORLDWIDE % of Company Net Sales 16.0 15.4 15.1 15.2 14.8 14.5 14.8 14.6 14.5 14.0 13.5 13.5 ’98 ’99 ’00 ’01 ’02 ’03 ’04 ’05 ’06 ’07 ’08 F ’09 F * Beginning in 2002 with the adoption of SFAS 142, goodwill amortization is no longer reflected in margin Note: Forecast rounded to nearest 50 basis points.
  • 16. Restaurant Margin CHINA DIVISION % of Company Net Sales 20.4 20.1 20.3 19.8 19.3 18.0 18.0 17.8 17 4 17.4 17.4 17 4 14.9 14.9 ’98 ’99 ’00 ’01 ’02* ’03 ’04 ’05 ’06 ’07 ’08 F ’09 F * Beginning in 2002 with the adoption of SFAS 142, goodwill amortization is no longer reflected in margin Note: Forecast rounded to nearest 50 basis points.
  • 17. Restaurant Margin YRI DIVISION % of Company Net Sales 14.3 14.2 13.7 13.4 13.0 13.0 12.7 12 7 12.1 12.2 12.3 11.0 11.0+ ’98 ’99 ’00 ’01 ’02* ’03 ’04 ’05 ’06 ’07 ’08 F ’09 F * Beginning in 2002 with the adoption of SFAS 142, goodwill amortization is no longer reflected in margin Note: Forecast rounded to nearest 50 basis points.
  • 18. Restaurant Margin UNITED STATES % of Company Net Sales 16.0 15.7 15.2 15.2 14.6 14.6 13.8 13.8 13.6 13.3 13.0 12.0 ’98 ’99 ’00 ’01 ’02* ’03 ’04 ’05 ’06 ’07 ’08 F ’09 F * Beginning in 2002 with the adoption of SFAS 142, goodwill amortization is no longer reflected in margin Note: Forecast rounded to nearest 50 basis points.
  • 19. Operating Profit WORLDWIDE Operating Profit ($ million) $1,555 $1,480 $1,357 $1,262 , $1,240 $1 240 $1,155 $1,153 $1,059 $1,028 $1,030 $860 $891 ’98 ’99 ’00 ’01 ’02 ’03 ’04 ’05 ’06 ’07 ’08 F ’09 F Note: Forecast rounded to nearest five.
  • 20. Operating Profit CHINA DIVISION Operating Profit ($ million) $525-$550 $460 $375 $ 90 $290 $205 $211 $161 $120 $63 $56 $39 $20 $ ’98 ’99 ’00 ’01 ’02 ’03 ’04 ’05 ’06 ’07 ’08 F ’09 F Note: Forecast rounded to nearest five.
  • 21. Operating Profit YRI DIVISION Operating Profit $530 ($ million) $500 $480 $407 $372 $337 $280 $243 $242 $241 $205 $186 ’98 ’99 ’00 ’01 ’02 ’03 ’04 ’05 ’06 ’07 ’08 F ’09 F Note: Forecast rounded to nearest five. 2009 is negatively impacted due to the reallocation of $5 million of unallocated G&A reclassified as YRI G&A. 2009 is also negatively impacted by foreign currency translation of about $80 million.
  • 22. Operating Profit UNITED STATES Operating Profit ($ million) $802 $812 $777 $808 $760 $763 $739 $728 $735 $721 $695 $685 ’98 ’99 ’00 ’01 ’02 ’03 ’04 ’05 ’06 ’07 ’08 F ’09 F Note: Forecast rounded to nearest five. 2009 is negatively impacted due to the reallocation of $45 million of unallocated G&A reclassified as U.S. G&A.
  • 23. Top 5 Currencies Impact On Operating Profit 2007 Operating Profit ($MM) Chinese Yuan ~350 ~100 British Pound Australian Dollar ~75 75 Euro E ~50 50 Canadian Dollar ~50 Note: Operating profit rounded to nearest $25MM
  • 24. Operating Profit Margin WORLDWIDE % of Revenue 15.9 13.5 13.3 13.2 13.0 13.0 12.8 12 8 12.6 12 8 12.8 12.3 12.1 12.1 ’98 ’99 ’00 ’01 ’02* ’03 ’04 ’05 ’06 ’07 ’08 F ’09 F Note: Forecast rounded to nearest 50 basis points. Beginning in 2002 with the adoption of SFAS 142, goodwill amortization is no longer reflected in margin.
  • 25. Operating Profit Margin YRI DIVISION % of Revenue 17.5 17.6 17.5 17.0 15.8 15.7 15.6 15.4 5 15.3 14.5 11.9 10.5 ’98 ’99 ’00 ’01 ’02 ’03 ’04 ’05 ’06 ’07 ’08 F ’09 F Note: Forecast rounded to nearest 50 basis points. 2009 was negatively impacted due to the reallocation of $5 million of unallocated G&A reclassified as YRI G&A.
  • 26. Operating Profit Margin UNITED STATES % of Revenue 15.5 15.0 14.4 14.1 14.4 14.4 14.2 13.6 13.5 13.5 13 5 12.8 11.2 ’98 ’99 ’00 ’01 ’02 ’03 ’04 ’05 ’06 ’07 ’08 F ’09 F Note: Forecast rounded to nearest 50 basis points. 2009 is negatively impacted due to reallocation of $45 million of unallocated G&A reclassified as U.S. G&A.
  • 27. Debt & Interest Expense Debt Interest Expense, Net ($ billion) ($ million) 272 3.7 3.5 35 3.4 225 220 3.2 202 176 172 173 166 158 154 2.5 2.5 2.4 24 129 127 2.3 2.2 2.1 1.9 1.7 ’98 ’99 ’00 ’01 ’02 ’03 ’04 ’05 ’06 ’07 ’08 F ’09 F ’98 ’99 ’00 ’01 ’02 ’03 ’04 ’05 ’06 ’07 ’08 F ’09 F
  • 28. Reported Tax Rate Q1 Q2 Q3 Q4 Full Year 2003 32.6% 31.4% 28.8% 29.2% 30.2% 2004 31.8% 31 8% 26.8% 26 8% 29.4% 29 4% 24.8% 24 8% 27.9% 27 9% 2005 31.4% 23.0% 26.8% 22.7% 25.8% 2006 31.3% 31 3% 29.0% 29 0% 25.8% 25 8% 17.2% 17 2% 25.6% 25 6% 2007 30.6% 21.5% 25.5% 16.4% 23.7% 2008 31.6% 14.8% 21.6% AVG 31.6% 24.4% 26.3% 22.1% 26.6%
  • 29. Consistent Double-Digit EPS Growth +15% +15% +14% +13% 13% +13% +13% 13% +12% +10% Target at least 10% ’02 ’03 ’04 ’05 ’06 ’07 ’08 F ’09 F Note: Prior to special items. 2005 growth rate is also prior to the impact of expensing stock options.
  • 30. EPS Reconciliation ’98 ’99 ’00 ’01 ’02 ’03 ’04 ’05 ’06 ’07 ’08 F EPS before Special Items 0.72 1.03 0.91 0.81 0.91 1.03 1.18 1.27 1.46 1.68 1.89 Special Items (0.01) (0.05) (0.22) — 0.03 (0.02) 0.03 0.01 — — .03 Reported EPS 0.71 0.98 0.69 0.81 0.94 1.01 1.21 1.28 1.46 1.68 1.92 Note: EPS is adjusted for stock splits in 2002 and 2007. Starting in 2005, EPS includes options expense. The estimated impact of stock option expense on EPS is approximately $0.07 per share for periods subsequent to 2004.
  • 31. Significant Share Buybacks Average Diluted Shares Share Buybacks (million) ($ million) 20% reduction 611 597 564 541 490 1,700 1,410 , 1,056 983 569 ’04 ’05 ’06 ’07 ’08 F ’04 ’05 ’06 ’07 ’08 F Avg $34 $34 $20 $25 $25 Price* *Rounded and split adjusted
  • 32. Dividends On May 6th, 27% increase, $0.25 from $0.15 to $0.19 $0 19 per share h $0.20 Doubled $0.15 $0.10 30% 15% Increase Increase Initiated $0.05 $0 05 $0.00 4 5 5 6 6 7 7 8 8 '0 '0 '0 '0 '0 '0 '0 '0 '0 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Note: split-adjusted (May 2007 2-for-1 stock split) quarterly dividend
  • 33. Yum! 2009 Capital Plan ($ million) China YRI U.S. Total New Company Restaurants 240 140 75 455 Upgrade 70 55 85 210 Brand Projects 35 40 65 140 SUBTOTAL 345 235 225 805 Maintenance 15 30 50 95 Corp/Other 0 0 0 0 TOTAL 360 265 275 900
  • 34. EBITDA Note We do not measure cash flow from operating activities on a segment basis However, we believe segment EBITDA provides a basis. However reasonable approximation of the ongoing cash generated by our segments prior to interest and income taxes and is thus useful to management and investors. Operating profit does not reflect interest expense and income taxes, and on a segment basis, also does not reflect certain unallocated expenses and other gains and losses.
  • 35. EBITDA ($ million) U.S. ’03 ’04 ’05 ’06 ’07 ’08 F Operating profit $812 $777 $760 $763 $739 $685 Depreciation & amortization 240 267 266 259 247 225 Impairment 15 17 44 38 23 35 5 Year CAGR (2)% EBITDA $1,067 $1,061 $1,070 $1,060 $1,009 $945 YRI Division Operating profit $280 $337 $372 $407 $480 $530 Depreciation & amortization 86 99 107 115 161 145 Impairment 13 19 10 15 13 10 5 Year CAGR EBITDA $379 $455 $489 $537 $654 $685 +13% China Division Operating profit $161 $205 $211 $290 $375 $460 Depreciation & amortization 60 69 82 95 117 160 Impairment 6 5 8 7 7 10 5 Year CAGR EBITDA $227 $279 $301 $392 $499 $630 +23% Continued on next slide Note: Forecast rounded to nearest five
  • 36. EBITDA ($ million) Total YUM ’03 ’04 ’05 ’06 ’07 ’08 F Operating profit $1,059 $1,155 $1,153 $1,262 $1,357 $1,480 Depreciation & amortization 401 448 469 479 542 530 Impairment 34 41 62 60 43 55 5 Year CAGR EBITDA $1,494 $1,644 $1,684 $1,801 $1, 942 $2,065 +7% Reconciliation to Net Income $1,460 $1,594 Segment operating profit $1,253 $1,319 $1,343 (229) (257) Unallocated and corporate expenses (179) (204) (246) 6 9 Unallocated other income (expense) (3) (2) 9 24 11 Unallocated refranchising gain (loss) 4 12 43 - - Wrench litigation (expense) income (42) 14 2 1 - AmeriServe and other (charges) credits 26 16 2 (154) (166) Interest expense (173) (129) (127) ( (284) ) ( (282) ) Income taxes ( (268) ) ( (286) ) ( (264) ) Cumulative effect of accounting change (1) - - - - $824 $909 Net income $617 $740 $762 Continued next slide Note: Forecast rounded to nearest five
  • 37. EBITDA & Capital Spending ($ million) ’03 ’04 ’05 ’06 ’07 Capital Spending U.S. $395 $365 $333 $329 $304 International Division 135 121 96 118 189 China Division 111 118 159 165 246 Corporate 22 41 21 2 3 Total $663 $645 $609 $614 $742 U.S. EBITDA after CAPEX S f C EBITDA $1,067 $1,061 $1,070 $1,060 $1,009 Capital Spending 395 365 333 329 304 EBITDA after CAPEX $672 $696 $737 $731 $705 YRI EBITDA after CAPEX EBITDA $379 $455 $489 $537 $654 Capital Spending 135 121 96 118 189 EBITDA after CAPEX $244 $334 $393 $419 $465 Continued on next slide Note: Forecast rounded to nearest five
  • 38. EBITDA & Capital Spending ($ million) ’03 ’04 ’05 ’06 ’07 China EBITDA after CAPEX EBITDA $227 $279 $301 $392 $499 Capital Spending 111 118 159 165 246 EBITDA after CAPEX $116 $161 $142 $227 $253 YUM EBITDA after CAPEX EBITDA $1,494 $1,644 $1,684 $1,801 $1,942 Capital Spending 663 645 609 614 742 EBITDA after CAPEX $831 $999 $1,075 $1 075 $1,187 $1 187 $1,200 $1 200 Note: Forecast rounded to nearest five
  • 39. Yum! Return on Invested Capital (ROIC) ($ million, except percentages) ’03 ’04 ’054 ’06 ’07 Operating Profit 1,059 1,155 1,153 1,262 1,357 Closure & Impairment Charges/(Credits) 40 38 62 59 35 Refranchising Net Loss/(Gain) (4) (16) (43) (24) (11) Implicit Lease Interest Expense 139 155 164 196 227 External Interest Income 12 16 20 18 30 Total ROIC Income Pretax 1,262 1,322 1,356 1,511 1,638 ROIC Income after Tax 880 957 1,007 1,123 1,252 Net Asset Base1,5 3,186 3,337 3,309 3,657 3,812 PV of Operating Leases 1,538 1,570 1,706 2,209 2,333 Closure & Impairment Charges/(Credits) Since 19972 483 515 567 611 635 Total 5,207 5,422 5,582 6,477 6,780 ROIC Net Asset Base3 4,967 5,315 5,502 6,029 6,628 ROIC 17.7% 18.0% 18.3% 18.6% 18.9% 1T Total l assets less current liabilities (excluding debt/cap leases) and other liabilities and deferred credits l li bili i ( l di d b / l ) d h li bili i dd f d di 2Closure and impairment charges adjusted down for impairment on refranchised stores. 3Average net asset base for current and prior year 4 Includes impact of stock option expense under SFAS 123R, “Share-Based Payment” and 53rd Week 5 Asset balances adjusted for excess cash to reflect average operating cash needs
  • 40. U.S. Taco Bell
  • 41. U.S. Pizza Hut/Wingstreet
  • 42. U.S. KFC
  • 43. YRI Pizza Hut UK KFC Dubai Pizza Hut Taiwan KFC Europe
  • 44. China
  • 45. Yum! Investor Relations Contacts Tim Jerzyk . . . . . . . . . . . . . . . . . . . . . . SVP Investor Relations/Treasurer tim.jerzyk@yum.com Bruce Bishop . . . . . . . . . . . . . . . . . . . . Director, Investor Relations bruce.bishop@yum.com Ben Dunham . . . . . . . . . . . . . . . . . . . . Manager, Investor Relations benjamin.dunham@yum.com Ben Golden . . . . . . . . . . . . . . . . . . . . . Shareholder Coordinator ben.golden@yum.com Aidita Bartolomei . . . . . . . . . . . . . . . . . Institutional Investor Coordinator aidita.bartolomei@yum.com Siena Crabtree . . . . . . . . . . . . . . . . . . Executive Assistant siena.crabtree@yum.com Janet duPont . . . . . . . . . . . . . . . . . . . Executive Assistant janet.dupont@yum.com www.yum.com/investor 888/298-6986