The document outlines the agenda for a company meeting, including welcome remarks, introductions, a presentation on China division growth strategy, and tours. It then provides details on the company's performance, including consistent double-digit earnings growth, share buybacks, same-store sales growth, and new unit growth. The remainder discusses strategies for growing brands in China across various restaurant categories to capitalize on the large market opportunity.

2. Today’s Agenda
Welcome . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Tim Jerzyk
Introduction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . David Novak
China Division Growth Strategy . . . . . . . . . . . . . Sam Su
BREAK
Division “Trade Show” . . . . . . . . . . . . . . . . . . . . . Division & Brand Senior
Management
Tour of Muhammad Ali Center

3. Information herein is as of 4/22/08
This presentation will include forward-looking
statements that reflect management’s
expectations based on currently available data.
However, actual results are subject to future
events and uncertainties. The information in the
presentation related to projections or other
forward-looking statements may be relied on
subject to the safe harbor statement posted on
our Web site: www.yum.com.

5. Power of Yum!
GLOBAL PORTFOLIO
GLOBAL GROWTH
GLOBAL CASH GENERATION

6. Consistent Double-Digit EPS Growth
+15% +15%
+14%
+13% +13% +13%
+11%
Target
Target
at least
at least
10%
10%
’02 ’03 ’04 ’05 ’06 ’07 ’08 F
Note: Prior to special items. 2005 growth rate is also prior to the impact of expensing stock options.

7. Significant Share Buybacks
Adding Shareholder Value
Average Diluted Shares
Share Buybacks
(million)
($ million)
12%
611
1,410
597 reduction
1,056
983
564
569 541
’04 ’05 ’06 ’07 ’04 ’05 ’06 ’07
Avg $34
$20 $25 $25
Price*
*Rounded and split adjusted

8. Driving Shareholder Value
Same-Store-Sales Growth
New Unit Growth
High Return on Invested Capital

9. Same-Store-Sales Growth
Brand Vision for Sales Layers
• More Balanced Options
• New Dayparts
• Everyday Value
• Contemporary Beverages & Destination Desserts
• New Proteins
• Contemporary Assets
Leveraging 35,000 Restaurant Assets

10. Asset Leverage Opportunity
2007 Average Unit Volume
($ million)
2.0
2.0 1.9
1.5
1.1 1.0
0.8
Top 10% System Top 10% System Top 10% System System
Company Company
Company

11. High-Return Unit Growth – China
China Division
506
New Restaurants
en
Driv 409
ty
i
Equ 396
357
302 297
’02 ’03 ’04 ’05 ’06 ’07
Strategic
Advantage
Largest Nationwide Development Capability

12. High-Return Unit Growth – YRI
YRI Division
Traditional New Restaurants
852
811
780 785 Company
749 720 6%
94%
Franchise Driven
’02 ’03 ’04 ’05 ’06 ’07
Strategic
Advantage
700+ Franchisees . . . across 110+ Markets

13. Increasing Return on Invested Capital
18% ROIC
• Extensive Equity Investment in Mainland China
• Broad-based YRI Franchise Growth
• Substantially Increased U.S. Franchise Ownership
• Increased Asset Leverage through Sales Layers

14. The Dynasty Model
Our Goal
Our Goal
Be the Best in the World at Building Great Brands and Running Great Restaurants!
Our Passion Our Formula for Success
Our Passion Our Formula for Success
Customer Mania . . . People Capability First . . .
put a YUM on customers’ faces satisfied customers and profitability follow
around the world
How We Lead
How We Lead
(with intentionality)
1. Step Change Thinkers
2. Know How Builders
3. Action Drivers
4. People Growers
How We Grow
How We Grow
Build Drive Aggressive, Dramatically Drive Industry-
Leading Brands in International Expansion Improve U.S. Brand Leading, Long-Term
China in Every and Build Strong Brands Positions, Consistency Shareholder and
Significant Category Everywhere and Returns Franchisee Value

15. A Winning Culture
how we win
together
(hwwt)2
believe in all people
we are customer maniacs
go for breakthrough
build know how
take the hill teamwork
recognize! recognize! recognize!

16. Yum!: A Defining Global Company
People Focused Culture: Where everyone
makes a difference
Breakthrough Results with Breakthrough
Innovation
Giving to Others: World Food Program
16

19. Build Leading Brands
Across China

20. YUM’s #1 Growth Strategy
Build Leading Brands
Build Leading Brands
Across China
Across China
in Every
in Every
Significant Category
Significant Category
Drive
Drive
Aggressive International
Aggressive International
Expansion and Build
Expansion and Build
Strong Brands
Strong Brands
Everywhere
Everywhere
Dramatically Improve
Dramatically Improve
U.S. Brand Positions,
U.S. Brand Positions,
Consistency and Returns
Consistency and Returns
Drive
Drive
Industry-Leading, Long-Term
Industry-Leading, Long-Term
Shareholder and Franchisee
Shareholder and Franchisee
Value
Value

21. Building a Portfolio of Category-Leading
Brands
Western
Western
Western Home Chinese Other New
Other New
Casual
Casual
QSR Delivery QSR Concepts
Concepts
Dining
Dining
?
East Dawning

22. Strong Profit Growth in a Scale Business
China Division
($ million)
26%+
26%+
5-Year CAGR
5-Year CAGR
$375
$290
$205
$120
’02 ’04 ’06 ’07

23. Yum! China
Huge
Huge
Restaurant
Restaurant
Opportunity
Opportunity
Portfolio of Brands
Portfolio of Brands
to Capture Opportunity
to Capture Opportunity
Big Investments
Big Investments
In Support Capability
In Support Capability

24. A Huge Opportunity
— Best growth market of 21st Century —
China
Population
Urban 500 million
Total 1.3 billion
U.S. Total Population
300 million

25. Biggest Growth Opportunity for
Restaurant Industry in 21st Century
Double-digit GDP/personal income growth last 4 years
Over 18 million people enter cities each year
Restaurant chain market share < 3%
U.S. Chain Brands = 60% of U.S. QSR market
High purchase intent for Western brands
Consumer demand for quality growing sharply

26. Big Opportunity Deserves a Big Goal
“To become
the best restaurant company
not only in China but the world”
Yum Restaurants China
Team Mission Statement
At Pepsi spin-off (October 1997)

27. Yum! China
Huge
Huge
Restaurant
Restaurant
Opportunity
Opportunity
Portfolio of Brands
Portfolio of Brands
to Capture Opportunity
to Capture Opportunity
Big Investments
Big Investments
In Support Capability
In Support Capability

28. Building Leading Brands in Multiple Key
Categories
YUM! China
Restaurant Categories
QSR
Casual Delivery
QSR Chinese
Dining
East Dawning
1987 1990 2001 2005
1987 1990 2001 2005

29. KFC the Leader in QSR
#1 QSR
“Life is tastier with KFC”
AUV = $1.3 million

30. KFC Well Positioned to Capture Huge
Opportunity
The leading QSR brand by wide margin
In over 450 cities
Reach & frequency at all-time high
Yet plenty of room for growth
As well positioned in China as McDonald’s was in the U.S.
Strong unit economics enable expansion

31. KFC’s Positioning: Go Beyond
Traditional QSR
Go Beyond the Traditional
Traditional QSR
Maintain the core (QSCV)
Core QSR strengths QSCV
Offer variety
Focus on few products to
generate volume
Focus on product taste
Focus on product consistency
(industrialize) Offer balanced choices
Encourage balanced meals &
Value drivers (“up size”)
regular exercise
Educate consumer on
Eat a lot of same product
healthy life style
frequently

32. KFC Leads in Major Food-Related
Measures…
Top 2 box% KFC
Chicken expert 67*
Food expert 61*
Good taste 73*
Food variety 66*
Interesting new products 65*
Data source: BIT March 2008 *Significant difference versus nearest competition,
N=1900 in 47 cities 95 confidence level

33. … and in Many Brand Imagery Attributes
Top 2 box% KFC
The leading QSR brand in China 65*
A brand I can trust 71*
The QSR brand I like most 63*
Deeply rooted in China 61*
Data source: BIT March 2008 *Significant difference versus nearest competition,
N=1900 in 47 cities 95 confidence level

34. Building a Big Brand at KFC
Community
Involvement
In-Store Experience
Menu
designed for Broad Appeal
Rooted in China
integrated into their life

35. KFC Menu Design Strategy
The chicken expert, but not chicken only
Different cooking platform to enhance variety
Meaningful side items to support balanced choices
Variety for different day parts, including breakfast
Products adapted to local tastes
Innovation Key to KFC’s Menu in China. . .

36. KFC Innovation in Chicken, Other Proteins
Chicken
Fish Series
Sandwiches

37. KFC Innovation in Snacks, Soups & Salads
Soups,
Salads
Snack
Variety

38. KFC Innovation in Desserts, Beverages
Hot & Cold Drinks
Desserts

39. Beyond Menu, KFC’s In-Store Experience
Second to None
Passionate crew brings Customer Mania to life
Up-to-date interior design
Dedicated hostess program in every store
Chicky program, a big hit with Kids
Birthday parties
Kids fun club - educational content

40. Community Involvement That’s Deeply
Rooted
Hostess as “community ambassador”
Community events / Festival celebration
Chicky program
KFC National Youth 3-on-3 Basketball Tournament
Largest grass-roots sports program in China history
Encourage healthy lifestyle
Charity program a critical part of brand building
First Light Foundation

41. KFC Brand Ready to Grow Even Bigger
• New sales layers
• Multiple proteins
• Multiple day parts
• Delivery
• New cities

42. Strong Growth for Pizza Hut Casual
Dining
Casual Dining
Restaurants 351
254
204
155
119
95
’02 ’03 ’04 ’05 ’06 '07

43. Pizza Hut the Clear Category Leader in
Casual Dining
Complete casual dining experience
Few Western competitors
In over 80 cities
Developing at rapid pace
Highly profitable business
Proven economics beyond top-tier cities

44. A Unique Western Casual Dining Brand
For most Chinese, a first experience with western dining
Pizza varieties - Pan, Thin & Crispy, Stuffed Crust
Expertise and innovation well beyond Pizza
Sautéed Pasta, Risotto
Regional cuisine – from Italy, from other origins
Complete meals -- appetizer, soup, salad, drinks, dessert

45. A Premium Casual Dining Experience
Escape from the ordinary
Upscale décor package
“5-Star” feel
In-store activities – e.g., country festivals
Fun, special moments
Tea Time afternoon day part

46. Pizza Hut Home Service an Emerging
Growth Brand
Pizza Hut Home Service
First in China to offer pizza delivery
Already a proven business model
Over 50 units today
Entering new cities

47. Delivery Brand with Everyday
Affordability
Functionally focused
Simplifying consumers’ daily routine
New traditional dough
Fast bake time
Non-pizza menu to enhance varieties

48. Delivery with Differentiated Service
Easy ordering
Well-trained Call Center staff
Online ordering
Delivery time promise
Neat, professional drivers

49. East Dawning: Our First Foray into
Chinese QSR
East Dawning

50. Bold Intentions to Build the Leading
Chinese QSR Brand
East Dawning
14 units today
Strong SSS growth
Improving AUVs
Inaugural TV launched

51. A Promising Future
East Dawning
KFC graduate
Higher frequency
Balanced in nature
Moving beyond Shanghai

52. East Dawning – The Choice of Chinese
QSR
East Dawning
Chinese Fast Food Meets KFC’s Standards

53. Yum! China
Huge
Huge
Restaurant
Restaurant
Opportunity
Opportunity
Portfolio of Brands
Portfolio of Brands
to Capture Opportunity
to Capture Opportunity
Big Investments
Big Investments
In Support Capability
In Support Capability

54. Making Bigger Investment in China
Unmatched Support Capabilities
Development
Logistics
Enabling Rapid
Growth in Our
Food Safety/Quality
High-Return
Brands
Food Innovation
Manufacturing
Call Center / Online Ordering

55. Unrivaled Development Capability
Today . . . 600+ Development professionals on the
ground
Extensive people development programs
Technical know-how and execution
Incentive programs drive superior results
Database of 450+ cities
2,500+ investment decisions in our database

56. Penetrating Beyond the Big Cities
KFC – % of New Builds by Tier
Tier 3,4,5,6 51%
Tier 1,2 50 % 48 % 49%
2005 2006 2007

57. New Opportunities in Non-Traditional
Units
• Today, over 25 Drive-Thru units
• Entering new destinations
– Airports, Bus & Train Stations

58. Operating Our Own Logistics Since Day
One
Today, A Powerful Advantage
Distribution Centers: 11
Satellite DC: 5
Processing: 2

59. World Class Logistics Infrastructure
Multiple Brands, Three Temperatures (Dry, Chilled, Frozen)

60. Investing in Logistics to Support Future
Growth
World-class distribution system
Support world-class restaurant operation
Food safety, ensure cold temp chain
Network plan for future store, volume growth
Increased efficiency with scale

61. Food Safety and Quality a Top Priority
Our Food Safety approach cited as strong model for China
Collaborating with government at many levels
Credibility with consumers and regulatory officials
Supplier commitment to our standards growing
As a whole, the industry is moving in the right direction

62. Food Product Innovation a Core Value for
China
Brands focused on developing new sales layers
Multiple categories: Proteins, Snacks, Desserts, Drinks
Launched 80+ new products annually across our brands
Over 170 products in our pipeline at any time
Team understands local palate, unique food culture
Intent to make breakthroughs in big payoff area:
Chinese Fast Food

63. Manufacturing When it Makes Sense
Targeted support for portfolio of growing brands
Pizza Dough Commissary Egg Tart Commissary
Destination Dessert

64. Call Center, Online Ordering to
Strengthen the Brand Experience
Investing in technology, services to make Brands more
accessible
Multiple national call centers, across China
Well-trained staff ready to take customer orders
Online ordering for added convenience
Capabilities scalable for multiple brands

65. Yum! China
Huge
Huge
Restaurant
Restaurant
Opportunity
Opportunity
Portfolio of Brands
Portfolio of Brands
to Capture Opportunity
to Capture Opportunity
Big Investments
Big Investments
In Support Capability
In Support Capability

66. Sustainable Competitive Advantages
Entering 3rd decade in Mainland China, first in market
Talented, tenured team… on the ground in Shanghai
Portfolio of category-leading Brands
Top tier Development team (600+ people)
Own major distribution network
Food Innovation, Food Safety systems “best in class”
Targeted manufacturing where it makes sense

67. Mainland China Market Potential
20,000+ Restaurants

68. Yum! China
Q&A
Yum! China Leadership Panel
Sam Su President, Yum! China
Lily Hsieh Chief Financial Officer
Angela Loh Chief Marketing Officer
Joaquin Pelaez Chief Support Officer