Yum China Holdings, Inc. · NYSE:YUMC
Yum China — Investor Day (2021)
25 slides from Yum China's investor day presentation, 2021
Slide 1: Thomas Chen, Chief Marketing Officer
Thomas Chen Chief Marketing 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 Takeaways: Lead, Learn, Leapfrog
Key Takeaways 01 02 03 LEAD LEARN LEAPFROG overall coffee category the business model the competition with from COFFii & JOY Lavazza joint venture
Slide 4: Our Vision: Lead In Overall Coffee Business
OUR VISION Lead In Overall Coffee Business
Slide 5: Rapid Growth in China Coffee Market
Rapid Growth in China Coffee Market (RMB bn) 206 46 +25% Coffee Market Potential Supports Our Growth 76 160 26 22 8 49 14 2014 2020 2024E Coffee products Cafés Source: Frost & Sullivan Source: Frost & Sullivan
Slide 6: Already a Strong Coffee Player in China
Already a Strong Coffee Player in China with K Coffee 7,000+ 140 mn +30% NUMBER CUPS SOLD CUPS SOLD IN 2020 OF STORES1 2021 1H VS 2019 1H 1. As of June 30, 2021
Slide 7: Expand with COFFii & JOY and LAVAZZA
Expand with COFFii & JOY and LAVAZZA SPECIALTY COFFEE WITH AUTHENTIC ITALIAN ACCESSIBLE PRICE COFFEE EXPERIENCE 37 22 NUMBER NUMBER OF STORES1 OF STORES1 1. As of Aug. 31, 2021
Slide 8: Drive Presence Beyond Stores
Drive Presence Beyond Stores AT HOME FRESH COFFEE1 INSTANT COFFEE COFFEE MACHINE AWAY FROM HOME RESTAURANT AND BAR HOTEL OFFICE AND LARGE SPACE 1. Fresh coffee includes beans, ground, capsules and pods
Slide 9: Learn the Business Model from COFFii & JOY
Learn the Business Model from COFFii & JOY DISTINCTIVE CORE DIGITAL & SMALL STORE PRODUCTS DELIVERY FORMATS
Slide 10: Recent Performance of COFFii & JOY
Recent Performance of COFFii & JOY GROWTH LOYALTY DIGITAL 2x 2019 2Q 2x 40+% 2021 2Q Per store member Digital order sales Same store sales number1 contribution2 1. 2021 2Q vs.2019 2Q 2. % in 2021 1H
Slide 11: Build Distinctive Core Products
Build Distinctive Core Products Specialty Coffee Coffee Infusion Coffee-pairing
Slide 12: Drive Digital & Delivery
Drive Digital & Delivery Drive first Optimize loyalty Improve delivery purchase program experience Mon Tue Wed Thurs Fri
Slide 13: Expand With Small Store Formats
Expand With Small Store Formats Small space Off-premise occasions Strategic channels 20-40 sqm 40+% delivery sales mix1 Office lobby, campus 1. % in 2021 1H
Slide 14: Leapfrog The Competition with Lavazza Joint Venture
Leapfrog The Competition with Lavazza Joint Venture AUTHENTICITY AND STORE EXPANSION BEYOND STORES INVENTIVENESS
Slide 15: Lavazza Cafes Have Achieved Initial Success in Only 1 Year
Lavazza Cafes Have Achieved Initial Success in Only 1 Year GROWTH LOYALTY DIGITAL 7x ~50% 46% Store expansion: Member sales mix Digital order sales 22 stores, Aug. 31, 2021 vs in 2021 1H contribution 3 stores, Aug. 31, 2020 2021 1H
Slide 16: Enhance Inventiveness And Authenticity
Enhance Inventiveness And Authenticity Superior Unique Italian Customized Menu Italian Café Coffee Chef Recipes For China Experience
Slide 17: Accelerate Expansion With Multiple Store Formats
Accelerate Expansion With Multiple Store Formats FLAGSHIP NORMAL SMALL 150-250 sqm 100-150 sqm 70-100 sqm High street, prime location Shopping mall Community and office
Slide 18: Current Footprint: Shanghai
CURRENT FOOTPRINT SHANGHAI Jan. 2020 Jingan district, Crystal Galleria
Slide 19: Current Footprint: Hangzhou
CURRENT FOOTPRINT HANGZHOU July 2021 Hangzhou 501
Slide 20: Current Footprint: Beijing
CURRENT FOOTPRINT BEIJING Aug. 2021 Beijing Solana
Slide 21: Current Footprint: Guangzhou
CURRENT FOOTPRINT GUANGZHOU Aug.2021 ICC Mall
Slide 22: In the Pipeline: Shenzhen
IN THE PIPELINE SHENZHEN Expected Nov. 2021 Qiantan Mixc
Slide 23: Go Beyond Stores with Lavazza Coffee Products
Go Beyond Stores with Lavazza Coffee Products COFFEE BEANS AND CAPSULE AND READY TO GROUND MACHINE DRINK Introduce best-selling products to China in the next 1-2 years Leverage Yum China’s restaurant network and digital capabilities
Slide 24: Make Coffee a Meaningful Part of Yum China!
Make Coffee a Meaningful Part of Yum China! Aiming to open 1,000 Lavazza stores by 2025 Resuming store expansion of COFFii & JOY
Slide 25: Yum China
YumChina