China Investor Conference

September 12 13, 2012

Forward Looking Statements

This presentation will include forward-looking statements that reflect managements 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.

Strengthening an Industry Leader

Vincent Huang

Celebrating the 4,000th store

1987 1st store 2004 1,000 stores 2007 2,000 stores 2010 3,000 stores 2012 4,000 stores

KFC: #1 QSR brand in China

store count comparison Store count gap widening vs. competition 3701 3244 2872 2497 2140 1557 1243 548 412
2001

1822 1135 1291 1468

766 538
2002

979 575
2003

639
2004

735
2005

783

876

1010

2006

2007

2008

2009

2010

2011

Enjoy first mover advantage in lower-tier cities

Store count 1829 1872

969 McD 499 McD T1-T2 cities T1/T2 cities T3-T6 cities T3+ cities

Rooted in China most evident in lower-tier cities

A Winning Formula to Take KFC Brand Deep Within China An aspirational and iconic brand, yet affordable Premier site of best trade zones First chance to experience Western food and culture Ideal place for rewarding children, friends gathering, a break from shopping

A preferred QSR brand deeply rooted in China

A series of strategic brand building blocks over the years
Today

Daypart / Service extensions (e.g. Delivery, 24 hours)

5+ Years ago

New Fast Food (vs. conventional model)

10+ Years ago

Position brand as Rooted in China

Day One

KFC heritage (fried chicken)

The New Fast Food business model

Great tasting and safe food; high-quality and speedy (what conventional fast food offers) Balanced in nutrition; healthy life style Rooted in China, continuous innovations

Build signature products in every category

Main meals
Colonels original recipe Zinger Dragon twister Curry pork rice

Build signature products in every category

Snacks & sides
Hot wing New Orleans wing Popcorn chicken Seafood star

Build signature products in every category

Beverages & desserts
9 lives juice Coffee float Egg tart

Build signature products in every category

Breakfast
Puff pastry sandwich Congee Dough stick Soy milk

Offer meaningful menu variety to broaden brand appeal

Roasted products Non-poultry choice Destination beverages & desserts Irresistible local flavors

Offer balanced choices and encourage healthy eating

Corn salad Juice Chinese veggie appetizer Veggie soup

Continuous consumer education on healthy eating

Thematic advertising, tray mats, booklets, packaging Sponsorship for studies on health and nutrition

16

Promote regular exercise with grass-root sport events

Teens KFC 3on3 Basketball Championship Teens Fitness Dance Program Good Morning Program

1.8 million students joined from 4,200 schools in 2012

176,800 participants from 500 cities in 2012

Winning over competition on New Fast Food image

(Top 2 box %) chicken expert food taste menu variety innovative balanced choice promote regular exercise rooted in China
Data source: Brand Image Tracking in 47 cities, 2012 Q1+Q2

KFC 57* 59* 56* 55* 43* 41* 53*

McD 39 49 47 40 33 33 35

*Significant difference 95% confidence level

18

Open 24 hours to serve various customer needs

Breakfast Weekday lunch Afternoon break Dinner special Overnight Delivery

KFC Breakfast: High Quality, Nutritious, Affordable

More and more people eat breakfast out of home with spending 3-5 yuan KFC 6 yuan breakfast value combo, competitive to Chinese QSR and convenient stores Other successful breakfast products

Becoming a preferred place for workday lunch

Shorter meal time around 30-40 min. and price-sensitive KFC 15 yuan weekday lunch value combos, an everyday affordable option Offer both Western and Chinese choices

A convenient and comfortable place for afternoon break

Afternoon tea time habit is becoming more popular
Coffee shops, bakery & retail, casual dinning

KFC Build your own tea sets at 9 yuan received very positive response Developing more destination beverages and desserts
22

22

Dinner: Offer abundant food choices for a relaxing time

Home meal replacement for young couples, or a quick meal before evening activities Have more time to enjoy good food vs. lunch Less price-sensitive Initial positive results from Dinner Special

Overnight: KFC is the best place to go

Many people out at midnight, especially in regions with warmer climate So convenient to find a KFC in large cities, the only place open in small cities Offer premium light meals

The largest food delivery brand in China

Meet fast growing consumer needs in 190 cities
Improving living conditions and increasing family income Busy life style no time to cook or not good at cooking Big party size

Charge delivery fee Online ordering transactions: 55%+

A convenient and popular place for Chinese consumers

Trade zones Commercial Residential
Transportation & other

Customers & key need states Kids & family Teens

Everyday affordable meal place

Adults

Family gathering, reward children

Friend gathering

Service formats Sit down On-the-go Drivethrough Delivery

Continue to drive sales growth from all dayparts

SS WPSA (RMB mm)
250 200 150 64 100 38 50 59 0 May YTD 2010 May YTD 2011 May YTD 2012
199 177 224

35 73 Del/24/BF Dinner Afternoon Lunch

16

25 69

41 64

44

72

Summary
The #1 QSR brand in China Growing faster than competition and well penetrated into lower tier cities Positioning as New Fast Food to become a welcome part of consumers life Recent key initiatives in leveraging assets and growing sales from all dayparts

Pizza Hut Dine-In Expanding a Casual Dining Powerhouse

Candy Chan

The Western Restaurant right next door for Chinese consumers

Hei Long Jiang

Northeast
Ji Lin Xin jiang Gan Su Inner Mongolia Liao Ning

North
He Bei Shan Xi

2011 New Openings: 114

Beijing Ning Xia Qing Hai

Shan Dong Jaing Su

Northwest
Tibet Si Chuan

He Nan

East Shanghai
Hu Bei An Hui Jiang Xi Hu Nan Fu Jian Guang Dong

700+ stores 160+ cities 30 provinces

Southwest
Gui Zhou Yun Nan

Guang Xi

South

Hai Nan

Multiple years of record growth

System Sales Growth %

35 32 22 13 2011 2009 2010

2012 Q2 YTD

Pizza & More: Anchor of success for the brand

Building the Best WCDR Menu

20%+ menu changes, twice a year

Enhance pizza expert position thru innovations or promotions

Page 35

Protein Variety: Steak, anyone?

Rice and Pasta, in case you dont feel like Pizza today

Drinks that deserve a spotlight of their own

Desserts for a perfect finishing touch

Leverage Assets to capture different dayparts

Afternoon Tea

Tea Time

Breakfast Working Day Lunch

Lunch Break at Pizza Hut Happy Restaurant : 3-course meal at a great price

Served by the best Operations Team in China

Chinese consumers love Pizza Hut: great success even in lower tier cities
Tier 4-6 vs. Tier 1-3

WPSA

Margin

1,000th store is not a distant goal

Picture of beautiful asset

Pizza Hut Home Service Developing Leading Delivery Brand

Candy Chan

Food Delivery Market continues to grow as lifestyles change

Food Delivery Market Penetration Food Delivery Usage (Times per quarter)

Times

49%
50%

15 35% 11

40% 30% 20% 10%

2010

2011

Base: All contact respondents

Base: P3M Food Delivery Users In SH

The Best Delivery Brand: Professional, Rich Varieties, Affordable

140 stores 13 cities

Meaningful variety to cater to local Chinese needs

Chinese menu items gaining in popularity

Weekly Units Sold

300 250 200 150 100 50 0 Chinese Rice Rice Noodle 2011 Q2YTD 2012

Transaction momentum stronger than ever

50% 40% 40% 30% 22% 20% 10% 0% 17%

24% Transaction Growth Rate

2009

2010

2011 Q2YTD 2012

Chinese Consumer habits changing rapidly: Rapid growth of e-Commerce and Media Digitalization
Media Consumption shifting to digital We reach customers in an e-way
- Search Engines - Video Streaming Websites
12 10 8 6 4 2 0 2009
Data sourceCMMS (46 cities)

- Social Media

e-Media

2.4

3.6

- SMS - Taobao, Sina Weibo

7.3

6.9

Traditional

2011

Our online ordering has increased dramatically over the last two years

40%+

Ove r 50% a re e -o rd e rs
Convenience Higher check average

Ap p s ta rte d in 2012

Lower order-taking costs

Consumers love what we have to offer, PHHS, a brand with bright future
I can have either Chinese or Western. I can even order Rice! Great! FA, PHHS user , TJ I was a bit surprised to find Rice Noodle and Hot Veggie. But am pleasantly surprised at the good quality of such. - FA, PHHS User, Shang Hai

With this pricing, its very competitive compared to QSR like KFC or McDs. YA, WQSR User, Nan Jing

I always thought its the same brandOh now I realize that the two brands are related by independent. PH Delivery is focused on DeliveryNo wonder its very professional. (WQSR User, FA, Nan Jing)

53

Made significant improvement to business model

# of PHHS units

Investment mode

$$

$$$
54

Pizza Hut Home Service brand will further expand nation wide

55

Little Sheep Enhancing A Great Brand

Angela Loh

Little Sheep: Todays discussion

Part of Yum!s #1 Growth Strategy A growing, mainstream Chinese category Brand with a strong foundation Strong category leader A bright future
Extend the brand Even stronger business model

Yum! Brands Strategies

Build Leading Drive Aggressive Brands in INTERNATIONAL CHINA Expansion and Build in Every Strong Brands Significant Everywhere Category

Dramatically Improve U.S. Brand Positions, Consistency and Returns

Drive IndustryLeading, Long-Term SHAREHOLDER & FRANCHISEE Value

What is HOT POT?

Hot Pot = Metal Pot + Soup Base + Fresh Raw Ingredients DIY Cooking

Why Consumers Love the Concept?

Rich flavor Lots of varieties, balanced choices Personal preferred taste Fun DIY cooking, convenient Great social gathering with friends & families Value for money

Hot Pot A Growing, Mainstream Category

%
100 90 80 70 60 50 40 30 20 10 0

Hot Pot Category: P3M Penetration

61

63

67 59 58

62

57

59

61

61

Total Base 1637

Tier 1 952

Tier 2 341

Tier 3 344

Teens 237

YA 655

OA 352

FA 393

Male 824

Female 813

Hot Pot U&A Study - Feb,2012. 12 cities in China tier 1, tier 2, tier 3

Hot Pot A Growing, Mainstream Category

China Catering Service
$300 Bn+ Industry

US $ Billion
350 300 250 200 150 100 50 0 2007 Today

318

2x

Hot Pot Category

Catering Share: 8% - 10%

152

Data source: catering service sales data sourced on National Bureau of Statistics of China and with 2007-2009 data calculated Hotpot category sales data sourced on industry report

Little Sheep: A Strong Foundation

Founded in 1999 First store in Baotou, Inner Mongolia IPO in HK in 2008 Cover 140+ cities in China, plus HK, Macau 27 stores in the US, Canada, Japan
Units
350 ~450

First unit open 1999

Category Leading Brand Equity

(Base=1000) Top of Mind Brand Awareness % Little Sheep Hai Di Lao Xiabu Xiabu Dong Lai Shun 32 8 4 2 P3M Visit Brand % 42 14 6 6 Most Often Brand % 29 8 4 1 Most Favorite Brand % 33 10 2 3

Base: P3M Hotpot users Data source: BIT survey on Jan 2012 in 12 cities

A Bright Future: Extend the Brand

Build Big Brand using Yum! China signature approach
Broaden menu Satisfy consumer changing needs Optimize service model

Proven track record extending big brands

KFC Rooted in China, Integrated in life Pizza Hut Dine In Complete Western casual dining experience Pizza Hut Home Service: Not just pizza delivery, but home meal replacement

A Bright Future Signature Menu

Hot pot expert: with secret recipe Lamb expert: Majority sourced from Inner Mongolia Variety: 120+ dishes - meat, seafood, vegetables, starches

A Bright Future New Service model

A Bright Future: Even Stronger Business Model

Leverage Yum! Chinas world-class restaurant support know-how
Operations Development Food innovation SCM Logistics Integration Underway: Synergies, Enhanced Capability

A Bright Future
Turning the most successful Hot Pot restaurant brand in the world

Little Sheep

into a significant part of Yum! Chinas business portfolio

Building Competitive Advantage Across China

Don Miller

China: Big Opportunity for Restaurant Industry

GDP/Personal income growth remain among best globally Middle class large and growing Government efforts to raise living standard for low income Government creating new retail opportunities thru designated development zones Restaurant chain market share remains low High purchase intent for world-class brands with high standards

Profitable Development, New Breakthrough Pace

Mainland China New Restaurant Openings New step change

700 in 2012

New Breakthrough Founded on Proven Capability

Development team on the ground in every province (except Tibet) 1,000+ Development professionals Extensive people development programs Advanced technical know-how and strong execution Database of 770+ cities Rich catalog of learning 4,700+ new build decisions
3,900+ data points on QSR ~700 data points on Casual Dining

Significant Growth Opportunity Remains

Government Plan in Next 5 Years 20+ New City Clusters

Growing Consuming Class

300+ million today

New Transport Infrastructure

Airports, Railway, Mass Transit

Rapid Retail Sector Growth

Shopping Malls, Hypermarts

Category-Leading, Powerhouse Brands

Penetration far beyond top tier, coastal cities

KFC - Strong Unit Economics

KFC New Units Today Average Unit Volume ($ million) Average Transactions (000) Cash Margin Cash Investment ($000) $1.4 - $1.5

340+ 20% - 22% $560

Strong Returns Sales 2.5X Investment

Note: FX rate US$ = 6.3454 RMB

KFC A Balanced Mix of Tiers, Large and Small

KFC: Unit %, Tier 3 & Below

Today, Half of Units in Lower Tier Cities

Pizza Hut Dine-In - Strong Unit Economics

Pizza Hut Dine-In New Units Today Average Unit Volume ($ million) Average Transactions (000) Cash Margin Cash Investment ($000) $1.4 - $1.5

70+ 23% - 26% $570

Strong Returns Sales Are 2.5X Investment

Note: FX rate US$ = 6.3454 RMB

Pizza Hut Re-accelerating Pace in Lower Tiers

Disciplined approach: Adjusting pace as necessary

Pizza Hut Also Growing Well Beyond Top Tier

Pizza Hut: Unit %, Tier 3 & Below

Unrivaled Strength Entering New Cities

Strong consumer acceptance in new cities Despite lower level of disposable income Direct competition in new cities virtually non-existent Capability ready day one - Operations, SCM, logistics Relatively lower costs versus top tier labor, rental New city unit economics best across our portfolio

Robust New City Pace

200+ New Cities, last 3 years

KFC & Pizza Hut combined

100 in Past 12 months

Entering New Cities, Both Coastal and Inland

YiNing T5 LuanNan T5

YinKou

T3 QingXian T4 ChuZhou T4

YanAn T4

XiChang T4

LingXiang T5

LouDi T4

LeCong T5

KFC New Entry City Unit Economics

New Cities last 12 months Today Average Unit Volume ($ million) Average Transactions (000) Cash Margin Cash Investment ($000) $1.4 - 1.5

300+ 25%+ $560

Lower cost structure Labor, Rent

Note: FX rate US$ = 6.3454 RMB Sales data used for Y12 P7 YTD

Pizza Hut Dine-In New Entry City Unit Economics

New Cities last 12 months Today Average Unit Volume ($ million) Average Transactions (000) Cash Margin Cash Investment ($000) $1.5 - $1.6

70+ 29%+ $570

Lower cost structure Labor, Rent

Note: FX rate US$ = 6.3454 RMB Sales data used for Y12 P7 YTD

Building Know-How in New Business Models

Transportation sites Delivery (to home or office)
24 Hours

Drive-thru Late night (24 Hours) Hypermarkets, shopping malls

Taking our brands to an increasing variety of trade zones

Discipline and Rigor For Every Unit Decision

Continuous market mapping and trade zone identification Detailed site selection process, one unit at a time Disciplined multi-step project approval Cross-functional governance for final new unit approval Rigorous construction and opening process ensure standards Feedback from post-opening analysis, every store

Record Milestones in 2012 700 New Units + 300 Remodels 1,000 New Assets

5,000+ Units by YE

Summary
Development remains a key growth driver World class Development capability Taking our Brands across all of China Not limited by our own resources