Pizza Hut Is the World's Leading Casual Dining Chain

Home , Del Taco, KFC, Krystal (restaurant)

Information herein is as of 4/22/08

ThisThis presentationpresentation willwill includeinclude forward-lookingforward-looking statementsstatements thatthat reflectreflect management’smanagement’s expectationsexpectations basedbased onon currentlycurrently availableavailable data.data. However,However, actualactual resultsresults areare subjectsubject toto futurefuture eventsevents andand uncertainties.uncertainties. TheThe informationinformation inin thethe presentationpresentation relatedrelated toto projectionsprojections oror otherother forward-lookingforward-looking statementsstatements maymay bebe reliedrelied onon subjectsubject toto thethe safesafe harborharbor statementstatement postedposted onon ourour WebWeb site:site: www.yum.com.www.yum.com. Today’s Agenda

WelcomeWelcome ...... TimTim JerzykJerzyk

OpeningOpening RemarksRemarks ...... DavidDavid NovakNovak

DrivingDriving SustainedSustained GlobalGlobal GrowthGrowth ...... Rick Carucci

YRIYRI GrowthGrowth StrategyStrategy ...... GrahamGraham AllanAllan

BREAKBREAK

TacoTaco BellBell ...... GregGreg CreedCreed

PizzaPizza HutHut ...... ScottScott BergrenBergren

KFCKFC ...... GreggGregg DedrickDedrick

LUNCHLUNCH :: KFC,KFC, PizzaPizza HutHut && TacoTaco BellBell FoodFood InnovationInnovation Today’s Agenda

U.S.U.S. BrandsBrands BreakoutBreakout Sessions/Q&ASessions/Q&A #1#1 ...... LeadershipLeadership TeamTeam

BREAK:BREAK: MoveMove toto 2nd2nd BreakoutBreakout SessionSession

U.S.U.S. BrandsBrands BreakoutBreakout Sessions/Q&ASessions/Q&A #2#2 ...... LeadershipLeadership TeamTeam

BREAK:BREAK: Beverage/DessertBeverage/Dessert InnovationInnovation

Q&AQ&A ...... DavidDavid NovakNovak RickRick CarucciCarucci

ClosingClosing RemarksRemarks ...... DavidDavid NovakNovak

RestaurantRestaurant ToursTours atat KFCKFC andand TacoTaco BellBell Driving Shareholder Value thru Significant Share Buybacks

$ (million) $981

Q1 '04 Q1 '05 Q1 '06 Q1 '07 Q1' 08

$0.6 Bn $1.1 Bn $1.0 Bn $1.4 Bn

Not Your Ordinary Restaurant Company

BuildBuild Leading Leading Brands Brands inin China China inin Every Every SignificantSignificant Category Category

DriveDrive AggressiveAggressive International International ExpansionExpansion and and Build Build StrongStrong Brands Brands EverywhereEverywhere

DramaticallyDramatically Improve Improve U.S.U.S. Brand Brand Positions, Positions, ConsistencyConsistency and and Returns Returns

DriveDrive Industry-Leading,Industry-Leading, Long-Term Long-Term ShareholderShareholder and and Franchisee Franchisee ValueValue Not Your Ordinary Restaurant Company

BuildBuild Leading Leading Brands Brands inin China China inin Every Every SignificantSignificant Category Category

DriveDrive AggressiveAggressive International International ExpansionExpansion and and Build Build StrongStrong Brands Brands EverywhereEverywhere

DramaticallyDramatically Improve Improve U.S.U.S. Brand Brand Positions, Positions, ConsistencyConsistency and and Returns Returns

DriveDrive Industry-Leading,Industry-Leading, Long-Term Long-Term ShareholderShareholder and and Franchisee Franchisee ValueValue Global Consumer Leader in Shareholder Payout

3-Year Annual Average 2005 – 2007

8.8%

7.7%

7.3%

5.9%

5.2%

4.6%

4.3%

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

MeaningfulMeaningful DividendDividend

AND SignificantSignificant AddingAdding ShareShare ShareholderShareholder BuybacksBuybacks ValueValue Quarterly Dividend Growth

$0.25 ~4x Today… initial $0.20 27% increase, dividend from $0.15 to $0.15 $0.19 per share Doubled

$0.10 30% 15% Increase Increase $0.05 Initiated

$0.00

'04 Q3 1 '05 Q Note: split-adjusted (May 2007 2-for-1Q3 stock '05 split) quarterly dividend 7 Q1 '06 '0 Q3 '06 '07 Q1 '08 Q3 Q1 Driving Sustained Global Growth Driving Sustained Global Growth

New Growth Vehicles

Improving Competitive Positioning

Huge Unit Growth Opportunity

Favorable Global Earnings Portfolio

Sales Layers Leveraging Our Assets Growth-Oriented Earnings Portfolio

Operating Profit Operating Profit Mix % Growth Profit ’02 ’07 Target Impact

China 10 24 20 % + 5%

YRI 21 30 10 % + 3%

U.S. 69 46 5 % + 2%

+ 10%

Shifting Towards Higher Growth Businesses

Note: Operating profit mix % excludes corporate allocation Earnings Portfolio Driven by Global Growth

% of Total Operating Profit 2017 F 2007

24% 30% 40% China U.S. China China 46% U.S. U.S. 30% 30% YRI YRI

Note: Excludes corporate allocation New Unit Growth: Global Opportunity

Traditional Restaurants Restaurants per million people (‘000) 60

U.S. 18

Mainland 2.6 China (MLC) 2 3 YRI 12 U.S. MLC YRI Select Growth Markets: 2 Billion People

Population Yum! Restaurants Per (million) Restaurants Million People India 1,130 173 0.2 Indonesia 234 620 2.6 Brazil 190 69 0.4 Russia 141 140 1.0 Nigeria 135 0 0 Vietnam 85 46 0.5 Germany 82 123 1.5 France 63 166 2.6 Subtotal 2,060 1,337 0.6

Note: Traditional units as of Q1 2008 Unit Growth Acceleration: U.S.

Yum! U.S. Total Units* Avg Annual +275 +626 +551 +512 Increase 20,037

14,921

9,408

3,148 403

'60’70’80’90’00 * Taco Bell, Pizza Hut and KFC Unit Growth Acceleration: China

Yum! Mainland China Total Units

Avg Annual +24 +232 Increase 2,558

241 1

’87 ’97 ’07 Unit Growth Acceleration: YRI

Total Units

Avg Annual Increase +14 +121 (Select Growth Markets) 12,354 10,418 8,649 Select Growth Markets

’97 ’02 ’07 ’12 F Strong International Competitive Position

Total Units (000s)

Other Top 10 U.S. 53,598 QSR*

15,199 20,061 14,528

13,774 17,272 U.S. INTERNATIONAL

*Subway, Wendy’s, Burger King, Sonic, Arby’s, Jack in the Box, Domino’s, Papa John’s, Hardee’s, Popeye’s Source: Piper Jaffray restaurant benchmark book (September 2007) Competitive Position: Two Scale Players

International Marketing Spending ($ million)

$1,700

$800

Average of Other Top 10 $40 U.S. QSR Concepts

Note: Company estimates Power of Competitive Positioning

ScaleScale AdvantageAdvantage

Marketing Spend Higher Brand Awareness

Purchasing Power Greater Cost Efficiencies

Talent Base Stronger Leadership

AA VViirrttuuoouuss CCyyccllee Yum! Position Strengthening vs. McDonald’s Outside U.S.

Total Units Outside the U.S.

2002 2007 CAGR

11,798 15,400 +5%

17,61717,515 Flat

Difference (5,819) (2,075)

Note: Excludes corporate allocation Expanding Lead in South Africa

2002 2007

341 479

McDonald’s89 110

Advantage: KFC+252 +369 Taking the Lead in Middle East

2002 2007

293 462

McDonald’s338 450

Advantage: KFC(45) +12 Expanding Lead in Indonesia

2002 2007

181 300

McDonald’s105 105

Advantage: KFC+76 +195 New Growth Vehicles

EastEast DawningDawning PizzaPizza HutHut HomeHome ServiceService

TacoTaco BellBell InternationalInternational PizzaPizza HutHut DeliveryDelivery Summary: Sustaining Global Growth

Strong and Even Better Earnings Growth Model

Long Runway for Global Unit Growth

Improving Competitive Position

Incremental Growth Potential from New Concepts Achieving Explosive Growth Around the World Key Messages

• Strong and diverse business with consistent track record

• Category leading brands with huge upside

• Exciting potential in key growth markets

• High returns for shareholders Another strong year in 2007…

Profit ($MM)

$480

12%

$407

12% $372

9% $337

2004 2005 2006 2007

Notes: 2004 profit and growth do not include impact from expensing stock options Growth rates exclude Fx and the impact of the extra week in 2005 … built on record openings and healthy growth in unit volumes

New Openings Same Store Sales Growth

852 6% 780 785

2005 2006 2007 2005 2006 2007 Several key elements in consistent results

• Strength of local management – 15 Business Management Units – Local teams – $375MM of G&A in 2007

• Tradition of in-market innovation

• Local relevance

• Culture of discipline and urgency

• Balanced portfolio Well balanced portfolio

Developed Developing Markets Markets Total

Units 57% 43% 12,173 ’07 Growth (23) 486 463

System Sales 63% 37% $13B ’07 Growth /1 5% 18% 10%

Population /2 750M 4.3B 5.1B

GDP per Capita /2 $30K+ <$3K $8K

/1 Ex Fx /2 Data excludes US and China Significant franchise base driving majority of growth

Units New Unit Openings

12,173 852 11,710 785 13% 6% Equity 15% 6%

Franchise 85% 87% 94% 94%

2006 2007 2006 2007 KFC is already a global powerhouse…

YE 2007 Units 2007 Net Builds Africa 500 38 Americas 1,539 17 Asia 2,459 111 Australia/New Zealand 654 9 Europe 1,272 111 Middle East 462 50 Total 6,886 336 …and is bigger than McDonald's in many parts of the world YE 2007 Units

South Africa 479 110

Malaysia 402 176 Indonesia 300 105

Caribbean 246 154

Ecuador 76 15

UAE 67 51 Other 5,316 16,028 Total 6,886 16,639 KFC is positioned around Taste all around the world

• Global cohesion is significant development

• Respect for local culture – Menu – Marketing

• Credible, resonant and relevant point of difference

• Filter for new products and consumer communication Committed to making KFC a modern brand everywhere

Contemporary Assets Menu Innovation

Youthful Communication Big Brand Marketing Initiatives Actively pursuing major sales layers Beverages Actively pursuing major sales layers Breakfast Actively pursuing major sales layers Non-Fried Actively pursuing major sales layers Seafood PH competes in two growing channels

Dine-in Delivery/Takeaway International International Market Size ($B) Market Size ($B)

48 R G A

1% C 1 29 + 22 R CAG 14 0% +1

2002 2007 2002 2007

Note: Data from Euromonitor, excludes the US and China Pizza Hut is the world’s leading casual dining chain

International Units 1,966

~200 164 150 116

PH Dine-In TGI Friday's Chili's Outback Applebee's

Countries 100+ 38 24 20 17

Note: PH Dine-In excludes China. International units for other brands are an estimate based on publicly available information and may include China. Our strategy is to strengthen our casual dining offer

Pizza Pasta

Appetizers Desserts Our strategy is to strengthen our casual dining offer

Tea Time Day Part Value Layers

Assets Branded Service Hot is the cornerstone of our delivery positioning We are also testing a new delivery brand – PHD

Focused on delivery fundamentals

• Right locations

• Speed and value

• Simple menu and operations Taco Bell is an exciting opportunity for YRI

Current Status

• 15 markets today

• Meaningful scale in Central America

• Open in Monterrey, Mexico

• Launching in 3 other markets in ‘08 YRI targeting big growth markets like India

Current Status

• 33 KFC’s

• 137 Pizza Huts

• 3 PHD’s

• Taco Bell to be launched Building a great business in Russia

Current Status

• 118 Rostik/KFC’s

• Partner is great concept leader with proven record

• Senior operations leader is a YUM employee

• Aggressive unit growth plans Europe still has huge growth potential, especially for KFC

• France still breaking records

• Germany much stronger

• Spain doing well

• Poland growing fast

• Big plans in CIS countries Opportunities abound in many other parts of the world

Southeast Asia Middle East

Latin America Africa YRI generates high cash flow…

EBITDA Capital Expenditure US$ MM’s US$ MM’s

654

537

189 118

2006 2007 2006 2007 …and world class returns for shareholders

ROIC

18% 18%

2006 2007 Summary

• Strong base

• Category leading brands

• Huge growth potential

• Great returns TheThe BoldBold ChoiceChoice inin QSRQSR ClearClear BrandBrand PositionPosition TheThe BoldBold ChoiceChoice inin QSR!QSR!

Our Credibility Value Proposition We invented Mexican Fast Food The Last Affordable Fast Food Restaurant OurOur OpportunityOpportunity TTuurrnn MMeexxiiccaann QQSSRR sseeggmmeenntt lleeaaddeerrsshhiipp……

Mexican QSR Sales = $10.6B

BBaallaannccee

BBaajjaa FFrreesshh TTaaccoo BBeellll DDeell TTaaccoo

CChhiippoottllee

Source: NPD Crest OurOur OpportunityOpportunity ……ooff aa ssmmaalllleerr sseeggmmeenntt ooff tthhee QQSSRR ccaatteeggoorryy……

Total QSR Sales = $220B+

PPiizzzzaa Mexican QSR Sales = $10.6B

BBuurrggeerrss Ballance SSaannddwwiicchh

Bajja Frresh Taco Bellll CChhiicckkeenn Dell Taco

Chipotle MMeexxiiccaann Chipotle BBaallaannccee

Source: NPD Crest OurOur OpportunityOpportunity ……iinnttoo cclleeaarr ##22 QQSSRR sshhaarree bbrraanndd!! QSR Market Share Rankings – YE 2007 #1#1

#2#2

#3#3

#4#4

#5#5

Source: NPD Crest OurOur OpportunityOpportunity ……iinnttoo cclleeaarr ##22 QQSSRR sshhaarree bbrraanndd!!

QSR Market Share Rankings – YFEu 2tu0r0e7 #1#1

#2#2 AreasAreas ofof StrategicStrategic FocusFocus

Build Sales Layers Accelerate the Create a New & Utilize Multiple System to Bold Service Paradigm Messages Choice Assets ConsumerConsumer PerceptionsPerceptions ImprovingImproving

QSRQSR AttitudesAttitudes AboutAbout TacoTaco BellBell PennPenn && SchoenSchoen ResearchResearch

83 77 70 73 59 55

Early Dec ‘06 Late Mar ‘07 Mid Nov ‘07

Overall Northeast BuildingBuilding SalesSales LayersLayers

ExpandedExpanded DaypartsDayparts

MoreMore BalancedBalanced OptionsOptions

NewNew ProductProduct LayersLayers

EverydayEveryday ValueValue

BaseBase BusinessBusiness DrivenDriven byby MenuMenu PipelinePipeline NewsNews

2008 33 V’sV’s ofof ValueValue OurOur FundamentalFundamental OrganizingOrganizing PrinciplePrinciple WhyWhy PayPay More!More! MenuMenu ValidatedValidated Vs.Vs. InternalInternal andand ExternalExternal BenchmarksBenchmarks

CheesyCheesy DoubleDouble BeefBeef vs.vs. WhyWhy PayPay More!More! WinsWins vs.vs. BBVMBBVM McD’sMcD’s Double Double CheeseburgerCheeseburger •• PricePrice TopTop TwoTwo BoxBox •• OverallOverall tastetaste == •• QualityQuality ofof foodfood forfor thethe 84%84% moneymoney BetterBetter ValueValue •• AmountAmount ofof foodfood forfor thethe moneymoney •• PortabilityPortability

Repeat Purchase of > 4 (over 3 ½ weeks)!!

Source: Test Market Buyer Reaction Studies Performed by Restaurant Research Associates WhyWhy PayPay More!More!

InIn RestaurantsRestaurants BeginningBeginning MayMay 15th15th AA NewNew BeverageBeverage PlatformPlatform

JustJust inin TimeTime ForFor SummerSummer —Coming—Coming MayMay 15th15th KeyKey InsightsInsights

•• 99 MenuMenu itemsitems reducedreduced toto 99 gramsgrams ofof fatfat oror lessless •• PopularPopular productsproducts -- approximatelyapproximately 15%15% ofof basebase menumenu mixmix •• FrescoFresco MenuMenu AverageAverage reductionreduction inin fatfat gramsgrams –– almost almost 40%40% •• FrescoFresco MenuMenu AverageAverage reductionreduction inin caloriescalories –– almost almost 20%20% OurOur BiggestBiggest “Loser”:“Loser”: RancheroRanchero ChickenChicken SoftSoft TacoTaco

Fat(g)Fat(g) CaloriesCalories Base Fresco Base Fresco 14 4 270 170 71%71% 37%37% ApproachApproach ToTo DietingDieting DiffersDiffers ByBy GenderGender

TasteTaste First,First, FatFat First,First, TasteTaste FatFat Second!Second! Second!Second!

“If“If itit doesn’tdoesn’t “Looking“Looking goodgood isis tastetaste good,good, hardhard work”work” II won’twon’t eateat it”it” TrialTrial RemainsRemains TheThe ChallengeChallenge

Trial Repeat

69% 60% 27% 54% 15% 5% Cheesy G CBRB Fresco Cheesy G CBRB Fresco BreakfastBreakfast RemainsRemains aa BigBig OpportunityOpportunity StrategicStrategic MarketingMarketing TacticsTactics

••MultipleMultiple SalesSales LayersLayers

••DoublingDoubling thethe PipelinePipeline MultipleMultiple SalesSales LayersLayers DeliveringDelivering ResultsResults W1W1 W2W2 W3W3 W4W4

PrimaryPrimary TVTV

SecondarySecondary TVTV

BetterBetter ForFor YouYou CommittedCommitted toto MoreMore ThanThan DoublingDoubling ProductProduct PipelinePipeline •• 1111 productproduct teststests throughthrough AprilApril •• AtAt leastleast 88 moremore post-summerpost-summer CommittedCommitted toto MoreMore ThanThan DoublingDoubling ProductProduct PipelinePipeline •• 1111 productproduct teststests through AprilAlmostAlmost asas throughmanymany April teststests asas •• AtAt leastleast 2005200588 moremore -- 2007 2007 post-summerpost-summercombinedcombined You’llYou’ll SampleSample SomeSome ofof thesethese GreatGreat ProductsProducts

PricePrice ValueValue AbundantAbundant ValueValue QualityQuality ValueValue You’llYou’ll SampleSample SomeSome ofof thesethese GreatGreat ProductsProducts

PricePrice ValueValue AbundantAbundant ValueValue QualityQuality ValueValue AssetAsset TransformationTransformation IsIs NecessaryNecessary

OOtthheerr HHoollddoovveerr

FFuunnccttiioonnaall BBoolldd ChallengingChallenging inin ContextContext ofof PrioritiesPriorities

Equipment/ System New Asset Refresh Technology Capital Unit Growth to Support Growth Grilled to Order Functional 3% Annually POS to Bold Frutista Freeze Ops Improvements Other BOH, tbd RequiresRequires BreakthroughBreakthrough ThinkingThinking TheThe BoldBold ChoiceChoice CollectionCollection InIn EveryEvery DMADMA

Flex 2 Five M 2 Bold

Ty07 Prototype

Next 2 Ten K 2 Bold DeliveringDelivering BrandBrand PromisePromise ThruThru HospitalityHospitality

OptimalOptimal LaborLabor AccuracAccurac SpeedSpeed TodayToday NoNo OneOne CanCan DoDo BothBoth

Speed Accuracy 11 WWeennddyy’’ss CChhiicckk--ffiill--AA 22 CChheecckkeerrss KKrryyssttaall 33 TacoTaco BellBell BBoojjaanngglleess’’ 44 MMccDDoonnaalldd’’ss EEll PPoolllloo LLooccoo 55 LLoonngg JJoohhnn SSiillvveerr BBuurrggeerr KKiinngg 66 BBuurrggeerr KKiinngg HHaarrddeeee’’ss 77 AArrbbyy’’ss DDeell TTaaccoo 88 BBoojjaanngglleess’’ WWhhaattaabbuurrggeerr 99 TTaaccoo JJoohhnn’’ss CChheecckkeerrss 1010 CChhiicckk--ffiill--AA MMccDDoonnaalldd’’ss SummarySummary

•• ClearClear BusinessBusiness TurnaroundTurnaround UnderwayUnderway •• StrategicStrategic ClarityClarity toto DeliverDeliver FutureFuture PerformancePerformance –Build–Build SalesSales LayersLayers andand EmployEmploy MultipleMultiple MessagesMessages –Develop–Develop aa SystemSystem ofof BoldBold ChoiceChoice AssetsAssets –Create–Create aa NewNew ServiceService ParadigmParadigm

PUREPURE HUT:HUT: AA VISIONVISION THATTHAT GOESGOES BEYONDBEYOND PIZZAPIZZA ......

America’sAmerica’s FavoriteFavorite PizzaPizza PUREPURE HUT:HUT: AA VISIONVISION THATTHAT GOESGOES BEYONDBEYOND PIZZAPIZZA ......

RestaurantRestaurant QualityQuality PastaPasta PUREPURE HUT:HUT: AA VISIONVISION THATTHAT GOESGOES BEYONDBEYOND PIZZAPIZZA ......

AwardAward WinningWinning ChickenChicken ATTACKINGATTACKING BARRIERSBARRIERS ANDAND OPPORTUNITIESOPPORTUNITIES ChangingChanging TheThe CommodityCommodity GameGame KnockingKnocking DownDown BarriersBarriers AffordableAffordable ValueValue DeliveringDelivering MoreMore ThanThan JustJust PizzaPizza (i.e.(i.e. Pasta)Pasta) FoodFood TheThe WayWay YouYou WantWant ToTo EatEat TodayToday RedefiningRedefining TheThe CategoryCategory ...... OnlyOnly atat PizzaPizza HutHut HOWHOW LAYERINGLAYERING WORKSWORKS HOWHOW LAYERINGLAYERING WORKSWORKS AFFORDABLEAFFORDABLE && TASTESTASTES GREATGREAT ValueValue ForFor ManyMany

AFFORDABLEAFFORDABLE && TASTESTASTES GREATGREAT ValueValue ForFor OneOne

QualityQuality AtAt aa ValueValue PricePrice PointPoint NOWNOW DELIVERINGDELIVERING RESTAURANTRESTAURANT QUALITYQUALITY PASTAPASTA TuscaniTuscani PastaPasta

AWARDAWARD WINNINGWINNING CHICKENCHICKEN CompleteComplete ChickenChicken SolutionSolution AWARDAWARD WINNINGWINNING CHICKENCHICKEN WingStreetWingStreet BrandBrand EnablesEnables RevitalizeRevitalize AssetsAssets

WingStreetWingStreet Lite!Lite! CityscapeCityscape WSWS forfor SmallSmall TownsTowns THETHE WAYWAY YOUYOU WANTWANT TOTO EATEAT TODAYTODAY TheThe NaturalNatural

PremiumPremium IngredientsIngredients TheThe ‘Pure’‘Pure’ PositioningPositioning

Assets:Assets: UpgradingUpgrading ToTo AA NewNew Standard!Standard!

Dine-In Delivery Rural Small Town Suburban Metro Urban

4,000+ Stores 3,000+ Stores Vision:

Everywhere! SERVICE:SERVICE: AA CRITICALCRITICAL FOUNDATIONFOUNDATION ALLALL REALIZEDREALIZED ININ OUROUR ONGOINGONGOING 22 BUSINESSBUSINESS MODELMODEL

DineDine InIn DeliveryDelivery KillerKiller ProductsProducts

WindowWindow ## Multi-TierMulti-Tier MediaMedia TopicTopic CC Cont.Cont. TopicTopic BB Cont.Cont. TopicTopic AA Cont.Cont. TopicTopic DD

VibrantVibrant StoresStores

Unexpected Service Dine-In Delivery Unexpected Service Focus on guest Fast, On Time Consistent Service HMR Experts

BrandBrand PositioningPositioning

MenuMenu VisionVision

WinningWinning OperationsOperations PlatformPlatform