Yum China Holdings, Inc. · NYSE:YUMC
Yum China — Investor Day (2021)
27 slides from Yum China's investor day presentation, 2021
Slide 1: Joey Wat, Chief Executive Officer
Joey Wat Chief Executive 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: Key figures: stores, revenue, operating profit, cash flow
11,023 Total stores1 ~3,500 Net new adds2 $8.3 bn Total revenue3 50%+ OP growth4 $4.5 bn Operating Cash Flows5 1. As of June 30, 2021 2. Cumulative from Jan. 1, 2017 to June 30, 2021, including Huang Ji Huang 3. As of Dec. 31, 2020, in reported currency 4. Reported currency 2020 vs. 2016 5. 2017 to
Slide 4: Fortify business resiliency, accelerate growth
Fortify business Resiliency Accelerate Growth
Slide 5: Unprecedented Store Expansion Pace
Unprecedented Store Expansion Pace Resilient Expansion Model Source: National Bureau of Statistics of China
Slide 6: Unprecedented Store Expansion Pace
Unprecedented Store Expansion Pace Resilient Expansion Model Source: National Bureau of Statistics of China
Slide 7: Enabled by Key Competitive Advantages
TH. YumChina Enabled by Key Competitive Advantages World-class Supply End-to-end Rrequinngyarron Chain Network Digital Capabilities
Slide 8: Unwavering Commitment to Menu Innovation
Unwavering Commitment to Menu Innovation Strengthen Expand Broaden Explore Core Categories Dayparts Food Choices Regional Menu Crispy Air chicken on-the-bone Late night street food Coconut drink Hot and dry noodle Hand-tossed pizza dough Afternoon tea Plant-based meat Steamed dumplings
Slide 9: Our World-class Supply Chain Enables Accessibility, Reliability & Agility
Our World-class Supply Chain Enables Accessibility, Reliability & Agility
Slide 10: Using Digitalization to Transform Store Operations
Using Digitalization to Transform Store Operations Super brain Smart delivery Pocket manager
Slide 11: Stores and employees 2016 vs 2021 1H
Stores 11,023 7,562 +45% 2016 2021 1H Employees 420,000 426,000 Flattish 2016 2021 1H
Slide 12: Going Forward, We Face Challenges & Opportunities
Going Forward, We Face Challenges & Opportunities Regional Consumer Intensified Outbreak Sentiment Competition
Slide 13: Fortify business resiliency, accelerate growth
Fortify business Resiliency Accelerate Growth
Slide 14: China Macro Economy Continues to Support Growth
China Macro Economy Continues to Support Growth Annual urban population increase (2021-2025) Total KFC & Pizza Hut stores per mn people1 22 ~10 mn 13 4 2 Henan Jiangxi Jiangsu Shanghai 1. As of Dec. 31, 2020 Source: National Bureau of Statistics, CBN, Public data on Yum! Brands’ IR website
Slide 15: Embrace Opportunities in the New Normal
Embrace Opportunities in the New Normal Off-Premise New New Retail Retail One-Person Meal RMB660 bn+ 25-35% Single-dining Market size expected average trend is rising representing 15-20% of the annual growth from overall foodservice market1 2020-20252 Source: 1. Based on the iResearch report publish
Slide 16: Aim to Reach 20,000 Store Milestone
Aim to Reach 20,000 Store Milestone
Slide 17: KFC Remains Resilient and Nimble
KFC Remains Resilient and Nimble 7,600+ 1,430 +75% +15% Operating Total stores 1 Net new adds 2 Delivery profit growth 4 sales growth 3 1. As of June 30, 2021; 2. Net new adds from July 1, 2019 to June 30, 2021; 3. 2021 1H vs 2019 1H in constant currency; 4. 2021 1H vs. 2019 1H in reported currency
Slide 18: Pizza Hut Innovates to Grow
Pizza Hut Innovates to Grow 2,400+ Total stores 1 170+ Net new adds 2 +40% Delivery sales growth 3 +25% Operating profit growth 4 1. As of June 30, 2021; 2. Net new adds from July 1, 2019 to June 30, 2021; 3. 2021 1H vs 2019 1H in constant currency; 4. 2021 1H vs. 2019 1H in reported currency
Slide 19: Make Coffee a Meaningful Part of Yum China
Make Coffee a Meaningful Part of Yum China
Slide 20: Unprecedented Store Expansion Pace
Unprecedented Store Expansion Pace Resilient Expansion Model Source: National Bureau of Statistics of China
Slide 21: Fortify business resiliency, accelerate growth
Fortify business Resiliency Accelerate Growth
Slide 22: Explore Opportunities in Supply Chain
Explore Opportunities in Supply Chain
Slide 23: Strengthen Digital Capabilities to Empower Growth
Strengthen Digital Capabilities to Empower Growth Joint venture with Intelligence digital leaders Store Strengthen in-house digital infrastructure AI Automation R&D Center Collaboration with Cutting-edge ecosystem partners Disruptive Technology 2021 YUMC Investor Day Fortifying Resiliency, Accelerat
Slide 24: Create a Responsible Ecosystem
Create a Responsible Ecosystem Goals and commitments Commit to setting science- based emissions reduction targets, in line with SBTi (Science Based Target initiative) criteria Reach net-zero value chain Greenhouse Gas (GHGs) emissions by 2050 Environment People Food
Slide 25: Strive to Make the World a Better Place
Strive to Make the World a Better Place One-Yuan Donation COVID-19 Support Community Support Employee Empowerment 14 years of commitment Top Employer in Only Mainland China Industry Leader for the China for the third company included in Restaurant & Leisure Facilities consecutive year 2021 Bloomberg
Slide 26: Reinforce RGM#1 Culture
Reinforce RGM#1 Culture
Slide 27: Yum China
YumChina