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Page 1: 06- Yum! India - library.corporate-ir.netlibrary.corporate-ir.net/library/11/117/117941/items/176210/06- Yum... · Pizza Hut India History;Started in 1996; ... Faced political issues

Sandeep Kohli, Managing DirectorSandeep Kohli, Managing Director

Yum! IndiaYum! India

Page 2: 06- Yum! India - library.corporate-ir.netlibrary.corporate-ir.net/library/11/117/117941/items/176210/06- Yum... · Pizza Hut India History;Started in 1996; ... Faced political issues

1.1 billion people, 1/6 of the world’s population, growing at 1.5% per year

7%+ GDP growth expected in the future

300 million middle class and growing

Service sector creating huge number of young consumers

400 malls under development, retail landscape changing

India . . . Huge Potential Market for Yum!

Source: Government agencies/Goldman Sachs

Page 3: 06- Yum! India - library.corporate-ir.netlibrary.corporate-ir.net/library/11/117/117941/items/176210/06- Yum... · Pizza Hut India History;Started in 1996; ... Faced political issues

Largest, fastest growing Pan India restaurant company

Fully resourced, local management team

Highly educated workforce . . . 90%+ with college degrees

Highly preferred employer

Network of well-resourced, committed franchise partners

Distribution and supply chain in place

Yum! India . . . Strong Capability to Drive Expansion

Page 4: 06- Yum! India - library.corporate-ir.netlibrary.corporate-ir.net/library/11/117/117941/items/176210/06- Yum... · Pizza Hut India History;Started in 1996; ... Faced political issues

Pizza Hut India History

Started in 1996

Two franchisees began development

International brand with Indian heart — products, service, assets

Consistently voted as the most trusted food-service brand

Page 5: 06- Yum! India - library.corporate-ir.netlibrary.corporate-ir.net/library/11/117/117941/items/176210/06- Yum... · Pizza Hut India History;Started in 1996; ... Faced political issues

Pizza Hut

29

2

127

’96 ’97 ’98 ’99 ’00 ’01 ’02 ’03 ’04 ’05 F

Where We Are Today

8 franchisees

Pizza Hut largest QSR brand in India, growing at 40%

Wide brand appeal, pizzas starting at 50 rupees ($1.10)

31 cities31 cities

Total Restaurants

Page 6: 06- Yum! India - library.corporate-ir.netlibrary.corporate-ir.net/library/11/117/117941/items/176210/06- Yum... · Pizza Hut India History;Started in 1996; ... Faced political issues

Established a National Presence

Pune

CochinCoimbatore

Vizag

Baroda

Jodhpur

Agra

Amritsar

Jalandhar

Pondicherry

Surat

Ahmedabad

Ludhiana

Mathura

Meerut

Kanpur

Mysore

Mangalore

Hubli

Vapi

Page 7: 06- Yum! India - library.corporate-ir.netlibrary.corporate-ir.net/library/11/117/117941/items/176210/06- Yum... · Pizza Hut India History;Started in 1996; ... Faced political issues

Development on Pace for an Emerging Market

9

132

29

1 2 3 4 5 6 7 8 9 10

Pizza Hut IndiaTotal Restaurants by Market

Pizza HutIndia

KFCChina

Years of DevelopmentYears of Development

Page 8: 06- Yum! India - library.corporate-ir.netlibrary.corporate-ir.net/library/11/117/117941/items/176210/06- Yum... · Pizza Hut India History;Started in 1996; ... Faced political issues
Page 9: 06- Yum! India - library.corporate-ir.netlibrary.corporate-ir.net/library/11/117/117941/items/176210/06- Yum... · Pizza Hut India History;Started in 1996; ... Faced political issues

Solid Unit Economics in Early Phase

23%Cash Flow Margin (Pre-royalty)

300Cash Investment ($ thousands)

400+Average Unit Volume ($ thousands)

Page 10: 06- Yum! India - library.corporate-ir.netlibrary.corporate-ir.net/library/11/117/117941/items/176210/06- Yum... · Pizza Hut India History;Started in 1996; ... Faced political issues

Growth Plan for 2006

5New Cities

Number of New Openings

35New Restaurants

Page 11: 06- Yum! India - library.corporate-ir.netlibrary.corporate-ir.net/library/11/117/117941/items/176210/06- Yum... · Pizza Hut India History;Started in 1996; ... Faced political issues

KFC India History

Started in 1995 — first western QSR

Faced political issues in first attempt (’95 – ’96)

Relaunched in ’03 — new asset design, wider vegetarian menu

Equity restaurant opened in Hyderabad in ’05

Page 12: 06- Yum! India - library.corporate-ir.netlibrary.corporate-ir.net/library/11/117/117941/items/176210/06- Yum... · Pizza Hut India History;Started in 1996; ... Faced political issues

KFC

11

1

’95 ’96 ’97 ’98 ’99 ’00 ’01 ’02 ’03 ’04 ’05 F

Where We Are Today

5 franchisees and company investment has begun

Developed vegetarian menu . . . 1/3 of population

KFC rice meal starting at 50 rupees ($1.10)

In six cities: Bangalore, Hyderabad, Calcutta, Pune, Chandigarh, Ludhiana

Total Restaurants

Page 13: 06- Yum! India - library.corporate-ir.netlibrary.corporate-ir.net/library/11/117/117941/items/176210/06- Yum... · Pizza Hut India History;Started in 1996; ... Faced political issues

KFC Menu

299 40 49 77 87 89 99

36 39 67 73

Vegetarian Items

Vegetarian Meals

Page 14: 06- Yum! India - library.corporate-ir.netlibrary.corporate-ir.net/library/11/117/117941/items/176210/06- Yum... · Pizza Hut India History;Started in 1996; ... Faced political issues

Solid Unit Economics in Early Phase

20%Cash Flow Margin (Pre-royalty)

500Cash Investment ($ thousands)

600+Average Unit Volume ($ thousands)

Page 15: 06- Yum! India - library.corporate-ir.netlibrary.corporate-ir.net/library/11/117/117941/items/176210/06- Yum... · Pizza Hut India History;Started in 1996; ... Faced political issues

KFC Growth Plan for 2006

3New Cities

Number of New Openings

15New Restaurants

Page 16: 06- Yum! India - library.corporate-ir.netlibrary.corporate-ir.net/library/11/117/117941/items/176210/06- Yum... · Pizza Hut India History;Started in 1996; ... Faced political issues

Why We Are So Optimistic about India

Tremendous long-term GDP growth potential

Large middle class, growing rapidly

Open landscape for well-executed brands

Yum! success factors

Infrastructure in place

Local team, supply chain established, well-resourced franchisees

5,000+ strong local Yum! family — deep rooted operating capability

Pizza Hut, a highly trusted brand

Full speed ahead on development