Yum China Holdings, Inc. · NYSE:YUMC
Yum China — Investor Day (2019)
25 slides from Yum China's investor day presentation, 2019
Slide 1: Innovation Powering Growth: 2019 Yum China Investor Day
in YumChina Innovation Powering #& Growth > O 2019 YUM CHINA INVESTOR DAY
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: Joey Wat, Chief Executive Officer
JOEY WAT CHIEF EXECUTIVE OFFICER
Slide 4: Our First KFC Store in Shanghai
Our First KFC Store in Shanghai 4
Slide 5: Meet Our Experienced Leadership Team
Meet Our Joey Wat Jacky Lo Johnson Huang Jeff Kuai Ted Lee Angela Ai Chief Chief Financial General General General Manager Chief Executive Officer Manager KFC Manager Pizza Little Sheep & East Development Experienced Officer China Hut China Dawning Officer Leadership Team Steven Li Shella Ng Danny T
Slide 6: The World's Most Innovative Pioneer In The Restaurant Industry
The World’s Most Innovative Pioneer In The Restaurant Industry 6
Slide 7: Largest Restaurant Company in China
5,900+ KFC stores 2,200+ Pizza Hut stores Largest Restaurant 1,200+ cities with stores Company in China 1,100+ cities with delivery service 20 Logistics centers store distribution center 7
Slide 8: We've Proven We Can Grow at Scale
We’ve Proven We Can Grow at Scale 8,484 9 160 MN 50 MN 3x 48% total stores by the consecutive more KFC more Pizza Hut delivery sales in operating profit end of 2018 quarters of system members members 2018 vs. 2014 growth from 2016 sales growth since compared with compared with to 20181 spin-off four
Slide 9: Yum China Has a Long Runway for Growth
Yum China Has a Long Runway for Growth 9
Slide 10: China Restaurant Market: Growing to be The World's Largest
China Restaurant Market: Growing to be The World’s Largest Top three restaurant markets: Growth outlook 2018-2023 Total restaurant market 2023 CAGR 2018-23 Delivery market size 2023 CAGR 2018-23 ($ billion) (%) ($ billion) (%) ~990 8% ~55 15% ~970 3% ~21 8% ~580 2% ~15 10% SOURCE: iResearch, Nationa
Slide 11: Yum China: Lots of Growth Still Ahead
Yum China: Lots of Growth Still Ahead Room to increase penetration And ~1,000 more cities to penetrate Number of KFC and Pizza Hut stores per million people, 2018 35.5 33.5 22.8 5.8 5.8 Series Urbanization 60% 81% 77% 84% Rate, 2018 SOURCE: National Bureau of Statistics of China, Worldometers, Yum!
Slide 12: Our Strategy for Profitable Growth
Our Strategy for Profitable Growth SUSTAINABLE PLATFORM FOR GROWTH YUM CHINA BRAND PORTFOLIO ENABLED BY THREE PILLARS ACROSS BRANDS DIGITAL DATA DELIVERY AND CROSS FUNCTIONAL CAPABILITIES HR Finance Supply Chain Legal Operation IT Public Affairs Development Marketing SUPPORTED BY FOUNDER’S MENTALITY
Slide 13: Four Key Differentiators
Hard-to- Match Capabilities Four Key Disruptive Differentiators Unique Innovation Culture &Talent High-impact Partnerships 13
Slide 14: Best-in-Class Development Capabilities
~1,000 development 900+ stores and asset managers remodeled in 2018 Best-in-Class Development BEST-IN-CLASS DEVELOPMENT Capabilities CAPABILITIES 10+ store formats ~30% cost savings developed for KFC and of new store build for Pizza Hut to meet different KFC and Pizza Hut1 consumer needs 1 Compariso
Slide 15: Aggressively Expanding Store Portfolio
Yum China new openings, 2016-18 ~2 new Number of stores stores a day Aggressively 819 Expanding Store 691 575 Portfolio Series 2016 2017 2018 15
Slide 16: Advanced Nationwide Supply Chain
1,200+ current cities Harbin 1,000+ greenfield cities Advanced Shenyang Urumqi Beijing Hohhot Tianjin 20 Dalian Nationwide Shijiazhuang Qingdao Jinan Lanzhou Xian Zhengzhou Xuzhou Logistics centers Supply Chain Suzhou Nanjing Shanghai Lhasa Chengdu Chongqing Wuhan Hangzhou Ningbo Nanchang Changsha 2
Slide 17: Continuously Enhancing Our Digital Capabilities
160mn KFC and 50mn Pizza Hut members Multiple privilege programs Continuously INSIGHTS Enhancing Our Digital ecosystem Digital Seamless online and offline experience Capabilities ANALYTICS AI forecasting Dynamic dispatching DATA and scheduling 17
Slide 18: Committed to Disruptive Innovation
Single Bone Chicken 热 辣 香 骨 鸡 Committed to Disruptive Innovation 18
Slide 19: Committed to Disruptive Innovation
AI Order Recommendation Committed to Disruptive Innovation 19
Slide 20: Committed to Disruptive Innovation
Hub and Spoke Model Traditional Dine-in Store Delivery Dessert & Committed to Support Drink Store Disruptive Innovation Dessert & Drink 20
Slide 21: Leveraging Capabilities to Accelerate Growth
Leveraging Capabilities to Accelerate Growth Opportunities Scale Competitive Capabilities and know- advantage how 21
Slide 22: High Impact Partnerships with Industry Leaders
High Impact Partnerships with Industry Leaders Formed strategic Agreed on exclusive Target to open 100+ partnerships1 for a rights with CNPC in stores at gas stations period of 20 years franchise business over the next 3 years 1 With Sinopec sales company and CNPC 22
Slide 23: Building a Better Work Environment
Building a Better Work Environment Top Employer 2019 Bloomberg Gender-Equality RGM NO.1 in China Index 2019 (Restaurant General Manager) Recognize commitment to 1 of 3 Chinese companies Provide qualified RGMs with creating a diverse and selected family health insurance (incl. inclusive space t
Slide 24: Strengthening the Communities We Serve
Strengthening the Communities We Serve One Yuan Grow Local KFC KFC Angel Donation Charity Initiative Reusable Basket Restaurants 40+ million nutritious Provided training to 860 Target to reduce 2,000 Offered 200+ jobs for meals provided local farmers in Yunan tons of paper packaging staff wi
Slide 25: We Have a Long Runway for Growth
We Have a Long Runway for Growth Unrivalled Hard-to- Disruptive High-impact Unique position match innovation partnerships culture and in China capabilities talent 25