Yum China Holdings, Inc. · NYSE:YUMC
Yum China — Investor Day (October 2017)
18 slides from Yum China's investor day presentation, Oct 18, 2017
Slide 1: 2017 Yum China Investor Day
2017 Yum China Investor Day STAY TRUE. AIM HIGH TST EEFELLI Micky Pant | CEO, Yum China OCT. 18 Shanghai YumChina
Slide 2: Cautionary Language Regarding Forward-Looking Statements
Cautionary Language Regarding Forward-Looking Statements Forward-Looking Statements. Our presentation may contain “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 stateme
Slide 3: Yum China by the numbers – a powerful business
Yum China by the numbers – a powerful business #1 Western QSR & $16.5Bn market cap* CDR brands in China #399 Fortune 500 2017** 7,747 stores in ~120mn members 1,100+ cities between KFC and Pizza Hut #1 restaurant operator 420,000+ employees In digital & delivery Strong management * As of the close o
Slide 4: World’s top 10 restaurant companies
World’s top 10 restaurant companies (Ranked by market cap) Market Cap Rank Company Store Count* (US$ bn) 1 McDonalds 132.8 37,011 2 Starbucks 80.8 26,736 3 Yum Brands 26.3 43,992 4 Yum China 16.5 7,747* 5 Restaurant Brands 15.6 23,423 6 Darden 9.8 1,701* 7 Chipotle 9.0 2,339 8 Domino’s 8.8 14,434* 9
Slide 5: One year since listing…
One year since listing… Share repurchase Dividend B authorization D initiation Strong financial Daojia A performance C acquisition 5
Slide 6: Financial highlights for 2017 first three quarters
Financial highlights for 2017 first three quarters System sales1 Restaurant margin Net income $6.0bn 19.3% $493mn ▲7%2 ▲ 2.3ppt ▲ 19% / +23% ex FX Adjusted EBITDA Diluted EPS Net cash $1,004mn $1.24 $1.6bn ▲ 12% / 16% ex FX ▲ 9% / 13% ex FX ▲ $604mn3 1 Company sales for 2017 first three quarters wer
Slide 7: National footprint with deep penetration
National footprint with deep penetration 5,000+ KFC stores 2,000+ Pizza Hut stores 1,100+ Cities with stores 800+ Cities with delivery service 17 Logistic centers 7
Slide 8: Potential to triple units over long term
Potential to triple units over long term Yum China Restaurant Penetration1 Cross-functional expertise (per million people) supporting unit growth #1 Restaurant development capability in 15 China • Proven record of development Deep internal know-how 5 • City database • Market insights Today Future Di
Slide 9: Potential headwinds to our success
Potential headwinds to our success 9
Slide 10: Diversified formats to support expansion - KFC
Diversified formats to support expansion - KFC 10
Slide 11: Diversified formats to support expansion – Pizza Hut
Diversified formats to support expansion – Pizza Hut 11
Slide 12: Unparalleled infrastructure
Unparalleled infrastructure • National supply chain • Unrivalled development capabilities • Industry leading marketing scale & coverage • Best in class operations • Robust IT infrastructure 12
Slide 13: Yum China is a responsible partner in communities across China
Yum China is a responsible partner in communities across China 10-year of One Yuan Donation Leverage digital & membership for charity RMB 170mn donated for children in 3.2 tons of potatoes sold poverty since 2008 through KFC App to help farmers in need 13
Slide 14: We are a caring company…
We are a caring company… KFC ANGEL THE FIRST LIGHT RESTAURANT FOUNDATION Best CSR Practice 2016 CSR 2016 Project Hope Award 2016 Innovation Award Contribution Award from China Enterprise CSR from China International from China Youth Annual Conference Philanthropic Movie Festival Development Foundati
Slide 15: Four key strategic priorities
Four key strategic priorities I. Focus on China Invest locally for growth II. Strengthen Core Business Improve stores, innovate menu, III. Digital and Delivery improve quality and value Invest and maintain lead IV. Innovation Product categories, formats and day parts 15
Slide 16: Yum China – Stay True: Aim High
A . YumChina STAY TRUE: AIM HIGH
Slide 17: Non-GAAP Definitions
Non-GAAP Definitions In an effort to provide investors with additional information regarding the Company's financial results and other financial information as determined by generally accepted accounting principles (GAAP), the company also discusses in these materials, the following Non-GAAP informa
Slide 18: Reconciliations of Reported Results to Non-GAAP Measures
Reconciliations of Reported Results to Non-GAAP Measures Reconciliation of Net Income to Adjusted EBITDA Quarter ended Year to date ended (In US$ million) 8/31/2017 8/31/2016 8/31/2017 8/31/2016 Net income – noncontrolling interests $ 10 $ 10 $ 21 $ 10 Net Income – Yum China Holdings, Inc. 211 192 4