Yum China Holdings, Inc. · NYSE:YUMC
Yum China — Investor Day (2023)
17 slides from Yum China's investor day presentation, 2023
Slide 1: Howard Huang, Chief Supply Chain Officer
Howard Huang Chief Supply Chain Officer
Slide 2: Cautionary Statements
Cautionary Statements Forward-Looking Statements. This presentation contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. We intend all forward-looking statements to be covered by the safe harbor
Slide 3: Yum China Has Built a World-Class Supply Chain
Yum China Has Built a World-Class Supply Chain Logistics Food Innovation Engineering Procurement Sustainability Food Safety Supply Chain Strategy Logistics Farms Suppliers Stores Centers 3
Slide 4: Four Key Pillars Fueling Business Growth
Four Key Pillars Fueling Business Growth 01 02 03 04 Food Safety Innovation Efficiency Sustainability Our #1 priority To maintain Reliable and agile Creating a competitive costs supply chain responsible and fulfill customer operation ecosystem needs 4
Slide 5: Holistic Food Safety and Quality Assurance Management System
01 Food Safety Holistic Food Safety and Quality Assurance Management System Risk Alert Smart Remote Store eQA1 iQA2 Smart Eyes Temperature Supervision Platform System End-to-end Digital Food Safety and Quality System Farms Suppliers Logistics Centers Stores 1. eQA: Intelligent quality assurance syst
Slide 6: Proactive Cost Management Mitigating Inflationary Pressure
02 Innovation Proactive Cost Management Mitigating Inflationary Pressure Food Material Market Price Index of Poultry 1 122 Non-food Material Cost Index of “Original Recipe Chicken”2 109 Equipment 2017 2018 2019 2020 2021 2022 2023 1H Logistics & Others All price indices are cumulative, 2017 index=10
Slide 7: Innovative Material Utilization for Further Cost Management
02 Innovation Innovative Material Utilization for Further Cost Management Full Utilization of White-feathered Broilers Exploring Other Chicken Breeds “817” Special Breed Chicken Fillet Chicken Bone Nibbler Juicy Whole Chicken Golden SPA Chicken Burger Chicken Wingtip Layer Chicken Chicken Soup Crisp
Slide 8: Investing in Infrastructure and Digital to Further Improve Efficiency
03 Efficiency Investing in Infrastructure and Digital to Further Improve Efficiency Farms Suppliers Transportation Logistics Centers Store End-to-End Intelligent Network to Intelligent Network Optimize Cost and Service Quality Capital Drive Operational Increase Automation Automation Expenditure Exce
Slide 9: Network and Transportation Efficiency Enhancement
03 Efficiency Network and Transportation Efficiency Enhancement Intelligent Netw ork Railway Optimize Logistics Center Locations & Redesign Coverage River Sea Collaborate with Suppliers to Save Inbound Cost Diversify Transport Mode to Manage Transportation Cost 9
Slide 10: Investing in Automation to Improve Efficiency
03 Efficiency Investing in Automation to Improve Efficiency Xi’an Logistics Center Nanxiang Logistics Center High Density Four-Way Shuttle System Automated Storage and Retrieval System 10
Slide 11: Expanding Infrastructure to Support Potential Growth
03 Efficiency Expanding Infrastructure to Support Potential Growth Nanning Logistics Center Future Now 3,000+ Logistics Network 5,000+ Logistics Network Cities and Towns Coverage Cities and Towns Coverage 1,900+ Cities and Towns Serving1 2018 Xi’an Logistics Center First Self-owned 45-50 Logistics C
Slide 12: Our Sustainability Efforts Focus on People and Environment
04 Sustainability Our Sustainability Efforts Focus on People and Environment Creating a Responsible Ecosystem PEOPLE FOOD ENVIRONMENT We CARE about our people We CARE about our customers We CARE about our environment with 'Fair, Care and Pride’ with safe & nutritious foods and minimizing our footpri
Slide 13: Three Environmental Sustainability Priorities
04 Sustainability Three Environmental Sustainability Priorities Targets BY 2035 63% Reduction in absolute Scope 1 and 2 GHG emissions Reduction in Scope 3 GHG 66.3% emissions from purchased goods per ton of goods Climate Circular Upstream purchased Action Economy Collaboration BY 2050 NET-ZERO Note:
Slide 14: Reduce Waste and Recycle More
04 Sustainability Reduce Waste and Recycle More Packaging Waste Recycle • Reusable Packaging Circular Economy • Used Cooking Oil Food • Packaging Waste • Reduce Food Loss and Waste • Coffee Grounds • Food bank 14
Slide 15: Explore New Business Opportunities in Supply Chain Services
Explore New Business Opportunities in Supply Chain Services 3rd Party Logistics Revenue ($ mn) Logistics x2 24 11 2021 2022 2023E Procurement Engineering Food Safety Sustainability 15
Slide 16: Foundation of Growth for Yum China
Foundation of Growth for Yum China
Slide 17: 2023 Yum China Investor Day
2023 YUM CHINA 2 0 INVESTOR DAY . Qrwrom TOL S t wm x