Global Growth Company & Cash Machine

Sanford BernsteinStrategic Decisions Conference

May 29, 2008

Global Growth Company & Cash Machine

Sanford BernsteinStrategic Decisions Conference

May 29, 2008

David NovakYum! Brands Chairman & CEO

David NovakYum! Brands Chairman & CEO

Power of Yum!

GLOBAL PORTFOLIO

GLOBAL GROWTH

GLOBAL CASH GENERATION

Not Your Ordinary Restaurant Company

% of Total Operating Profit

Note: Excludes corporate allocation

2017 F

China

U.S.

2007

46%U.S.

30%YRI

24%China

30%U.S.

30%YRI

40%China

Consistent Double-Digit EPS Growth

Note: Prior to special items. 2005 growth rate is also prior to the impact of expensing stock options.

+13% +13%

+15%

+13%+14%

+15%

+11%

’02 ’03 ’04 ’05 ’06 ’07 ’08 F

Targetat least

10%

Targetat least

10%

Significant Share Buybacks

569

1,056 983

1,410

’04 ’05 ’06 ’07

611597

564

541

’04 ’05 ’06 ’07

Share Buybacks($ million)

Average Diluted Shares(million)

12%reduction

AvgPrice*

$20 $25 $25 $34

*Rounded and split adjusted

Commitment to Dividends

$0.00

$0.05

$0.10

$0.15

$0.20

$0.25

Q3 '04

Q1 '05

Q3 '05

Q1 '06

Q3 '06

Q1 '07

Q3 '07

Q1 '08

Note: split-adjusted (May 2007 2-for-1 stock split) quarterly dividend

On May 6th,27% increase, from $0.15 to

$0.19 per share

Initiated15%

Increase

30% Increase

Doubled

~4x initial

dividend

Dramatically ImproveU.S. Brand Positions,

Consistency and Returns

Dramatically ImproveDramatically ImproveU.S. Brand Positions,U.S. Brand Positions,

Consistency and ReturnsConsistency and Returns

Drive Aggressive International

Expansion and BuildStrong Brands

Everywhere

Drive Drive Aggressive InternationalAggressive International

Expansion and BuildExpansion and BuildStrong BrandsStrong Brands

EverywhereEverywhere

Build Leading Brands in China in Every

Significant Category

Build Leading Brands Build Leading Brands in China in Every in China in Every

Significant CategorySignificant Category

Drive Industry-Leading, Long-Term Shareholder and Franchisee

Value

Drive Drive IndustryIndustry--Leading, LongLeading, Long--Term Term Shareholder and FranchiseeShareholder and Franchisee

ValueValue

4 Key Strategies to Drive Growth

Bigger Brands New Growth Brands

East DawningEast Dawning

Build Leading Brands in China

• New Proteins• Breakfast

Expansion• Delivery• Drive-thru

• New Cities• Tea Time• New Menu

. . . with World-Class Infrastructure and Long-Term Competitive Advantage

“Sysco-like”Distribution

Business

“Sysco-like”Distribution

Business

TargetedManufacturing

TargetedManufacturing

Unmatched National Development

Capability

Unmatched National Development

Capability

National Scale — 500 CitiesNational Scale — 500 Cities

UnparalleledTalent &

Experience

UnparalleledTalent &

Experience

Leverage Existing Brands

Emerging/New Markets

New Brands

•Non-Fried•Beverages•New Proteins•Breakfast

•Non-Fried•Beverages•New Proteins•Breakfast

•Enhanced Dine-In

•Dedicated Delivery

•Enhanced Dine-In

•Dedicated Delivery

•India•Russia•Western Europe•Africa

•India•Russia•Western Europe•Africa

Drive Aggressive YRI Expansion

Yum! Restaurants InternationalYum! Restaurants International

U.S. YRI

Note: Traditional units only (2007)

Mainland China

18,000Restaurants

2,600Restaurants

300million300300

millionmillion

12,000Restaurants

5+billion

5+5+billionbillion

1.3billion1.31.3

billionbillion

Restaurants PerMillion People

Huge YRI Growth Opportunity

60 2 3

Permanent Sales LayersPermanent Sales LayersPermanent Sales Layers

Dramatically Improve U.S. Brands

Refranchising and RestructuringRefranchising and RestructuringRefranchising and Restructuring

Investments in Brand RepositioningInvestments in Brand RepositioningInvestments in Brand Repositioning

+

+

Business TransformationBusiness Transformation

Asset Leverage Opportunity

2.0

1.1

1.9

1.01.5

0.8

Top 10%Company

System Top 10%Company

System Top 10%Company

System

2007 Average Unit Volume($ million)

2.0

System

Vision for Sales Layers

• More Balanced Options

• New Dayparts

• Everyday Value

• Contemporary Beverages & Destination Desserts

• New Proteins

• Contemporary Assets

• More Balanced Options

• New Dayparts

• Everyday Value

• Contemporary Beverages & Destination Desserts

• New Proteins

• Contemporary Assets

Leveraging 35,000 Restaurant AssetsLeveraging 35,000 Restaurant Assets

Transforming Our U.S. Business

HMRPizzaPizza

Fried, Grilled,Portable and MoreFried ChickenFried Chicken

Mexican-InspiredPowerhouseMexican FoodMexican Food

FROMFROM TOTO

PizzaPastaChicken

Dramatically ImproveU.S. Brand Positions,

Consistency and Returns

Dramatically ImproveU.S. Brand Positions,

Consistency and Returns

Drive Aggressive International

Expansion and BuildStrong Brands

Everywhere

Drive Aggressive International

Expansion and BuildStrong Brands

Everywhere

Build Leading Brands in China in Every

Significant Category

Build Leading Brands in China in Every

Significant Category

Drive Industry-Leading, Long-Term Shareholder and Franchisee

Value

Drive Drive IndustryIndustry--Leading, LongLeading, Long--Term Term Shareholder and FranchiseeShareholder and Franchisee

ValueValue

4th Key Strategy: Drive Value

Drive High ROIC

Focus investments on high-return opportunities

Mainland China brands

Franchise development at YRI

Maintain strong discipline with Maintain strong discipline with ““earn the right to ownearn the right to own””principleprinciple

Reduce company ownership in U.S.Reduce company ownership in U.S.

Source: Thomson Financial Data; ROIC = EBIT (1 – Effective Tax Rate) / (Total Equity + Total Debt)

2007 ROIC

A Global Leader in Returns

11%

11%

18%

19%

22%

25%

27%

36%

Global Leader in Shareholder Payout

Source: Thomson Financial Data Payout = (Dividends + Repurchase) / Average Market Capitalization

3-Year Annual Average2005 – 2007

4.3%

4.6%

5.2%

5.2%

5.9%

7.3%

7.7%

8.8%

Not Your Ordinary Restaurant Company

YRIYRIYRI

Growth“Greatest Potential”

GrowthGrowth“Greatest Potential”

U.S.U.S.U.S.

Value“Asset Leverage”

ValueValue“Asset Leverage”

ChinaChinaChina

Growth“First Inning”

GrowthGrowth“First Inning”

Opportunity to Invest inOverseas and Emerging Markets

Opportunity to Invest inOverseas and Emerging Markets

Commitment to Shareholders

Leader in International Development

Build Significant, Sustainable Sales Layers

Leader in Free Cash Flow and Returns

Leader in Shareholder Payouts

Leader in International Development

Build Significant, Sustainable Sales Layers

Leader in Free Cash Flow and Returns

Leader in Shareholder Payouts

AT LEAST 10% EPS GROWTHAT LEAST 10% EPS GROWTHAT LEAST 10% EPS GROWTH

22

Yum!: A Defining Global Company

People Focused Culture: Where everyone makes a difference

Breakthrough Results with Breakthrough Innovation

Giving to Others: World Food Program

People Focused Culture: Where everyone makes a difference

Breakthrough Results with Breakthrough Innovation

Giving to Others: World Food Program