KPMG LLP Suite 2600 400 West Market Street Louisville, KY 40202

Independent Accountant’s Review Report

The Board of Directors YUM! Brands, Inc.:

We have reviewed the accompanying Statement of Greenhouse Gas Emissions and Water Withdrawal (the Statement of GHG Emissions and Water Withdrawal) for the year ended December 31, 2018 of YUM! Brands, Inc. YUM Brands, Inc.’s management is responsible for preparing and presenting the Statement of GHG Emissions and Water Withdrawal in accordance with the World Resources Institute/World Business Council for Sustainable Development (WRI/WBCSD) Greenhouse Gas Protocol: A Corporate Accounting and Reporting Standard, Revised Edition for Scope 1 and 3 and the WRI/WBCSD Greenhouse Gas Protocol Scope 2 Guidance; an amendment to the GHG protocol Corporate Standard, and the Water Withdrawal criteria set forth in Note 1. Our responsibility is to express a conclusion on the Statement of GHG Emissions and Water Withdrawal based on our review.

Our review was conducted in accordance with attestation standards established by the American Institute of Certified Public Accountants. Those standards require that we plan and perform the review to obtain limited assurance about whether any material modifications should be made to the Statement of GHG Emissions and Water Withdrawal in order for it to be presented in accordance with the criteria. A review is substantially less in scope than an examination, the objective of which is to obtain reasonable assurance about whether the Statement of GHG Emissions and Water Withdrawal is in accordance with the criteria, in all material respects, in order to express an opinion. Accordingly, we do not express such an opinion. We believe that our review provides a reasonable basis for our conclusion.

As described in Note 1, GHG Emissions and Water Withdrawal data are subject to measurement uncertainties resulting from limitations inherent in the nature and the methods of determining such data. The selection of different but acceptable measurement techniques can result in materially different measurements. The precision of different measurement techniques may also vary.

Based on our review, we are not aware of any material modifications that should be made to the Statement of GHG Emissions and Water Withdrawal of YUM! Brands, Inc. for the year ended December 31, 2018, in order for it to be presented in accordance with the WRI/WBCSD Greenhouse Gas Protocol: A Corporate Accounting and Reporting Standard, Revised Edition for Scope 1 and 3 and the WRI/WBCSD Greenhouse Gas Protocol Scope 2 Guidance; an amendment to the GHG protocol Corporate Standard and the Water Withdrawal criteria set forth in Note 1.

Louisville, July 24, 2019

KPMG LLP is a limited liability partnership and the U.S. member firm of the KPMG network of independent member firms affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity.

Statement of Greenhouse Gas Emissions and Water Withdrawal For the year ended December 31, 2018

2018 2018 CO2e Market-Based (metric Location-Based Emissions tonnes (MT)) (metric tonnes (MT)) Scope 1 48,046.50 48,046.50 Scope 2 159,402.58 155,439.22 Subtotal: Gross Scope 1 & 2 207,449.08 203,485.72 Scope 3 28,941,866.03 28,941,866.03 Total: Gross Scope 1, 2, & 3 29,149,315.11 29,145,351.75

2018 Water Withdrawal Equity Stores Mega liters (Mega liters) Withdrawal 2,133.4

See accompanying Independent Accountants’ Review Report and notes to Statement of Greenhouse Gas Emissions and Water Withdrawal.

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Notes to the Statement of Greenhouse Gas Emissions and Water Withdrawal For the year ended December 31, 2018

Note 1: The Company

Organization

Yum! Brands, Inc., based in Louisville, Kentucky, has over 48,000 restaurants in more than 140 countries and territories. The Company’s restaurant brands are – KFC, Pizza Hut and Taco Bell – which operate in the chicken, pizza and Mexican-style food categories.

The Company has participated in the Carbon Disclosure Project (CDP) since 2010, publicly reporting on our progress towards reducing emissions and will continue to do so going forward. Between the CDP and our annual Corporate Sustainability Report (CSR), stakeholders will be able to review our progress towards reducing our emissions.

Basis of Presentation

The Statement of Greenhouse Gas (GHG) Emissions and Water Withdrawal (the Statement) has been prepared based on a calendar reporting year ended December 31, 2018.

▪ Scope 1 and Scope 3 GHG emissions information has been prepared in accordance with the World Resources Institute / World Business Council for Sustainable Development (WRI/WBCSD) Greenhouse Gas Protocol: A Corporate Accounting and Reporting Standard, Revised Edition.

▪ Scope 2 GHG emissions information has been prepared in accordance with the WRI/WBCSD GHG Protocol Scope 2 Guidance: An amendment to the GHG Protocol Corporate Standard.

Collectively, the Greenhouse Gas Protocol: A Corporate Accounting and Reporting Standard, Revised Edition and the GHG Protocol Scope 2 Guidance: An amendment to the GHG Protocol Corporate Standard are referred to as the GHG Protocol.

The GHG emissions included in the Statement includes all direct (Scope 1), indirect (Scope 2) GHG emissions generated from all company-operated locations as defined under the operational control method and indirect (Scope 3) GHG emissions from all franchise facilities.

At the close of business of October 31, 2016 Yum’s China division was spun-off into an independent, publicly traded company under the name of Yum! China Holdings, Inc. As a result, the China business now operates under a franchise agreement and GHG emissions are included under Scope 3. These emissions have been calculated directly from reported energy consumption at the restaurant level.

The water withdrawals included in the Statement includes all water withdrawal generated from all company- operated locations. Total water withdrawals include total of all withdrawals from municipal water utilities. Withdrawals from municipal water utilities is determined from utility invoices.

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Notes to the Statement of Greenhouse Gas Emissions and Water Withdrawal For the year ended December 31, 2018

Estimation Uncertainties

Environmental and energy use data, and water withdrawal data included in the Statement of GHG Emissions and Water Withdrawal are subject to rounding as well as to measurement uncertainties resulting from limitations inherent in the nature and the methods used for determining such data. The selection of different but acceptable measurement techniques can result in materially different measurements. The precision of different measurement techniques may also vary.

Consumption is based on raw data when available. When raw data is unavailable, we estimate consumption based on the average consumption from the most comparable facilities within the same geographic location. When this data was not available for water withdrawal, cost data was used to estimate the value.

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Notes to the Statement of Greenhouse Gas Emissions and Water Withdrawal For the year ended December 31, 2018 Note 2: GHG Reporting

Greenhouse Gases

GHG emissions include four of the seven greenhouse gases covered by the Kyoto Protocol – carbon dioxide

(CO2), methane (CH4), nitrous oxide (N2O), and hydrofluorocarbons (HFCs). Perfluorocarbons (PFCs), nitrogen trifluoride (NF3) and sulphur hexafluoride (SF6) emissions have been omitted from our reporting as we do not use coolants that generate these greenhouse gases.

GHG Emission Factors

GHG Emission Source Emission Factor Source

World Resource Institute (2015). GHG Protocol tool for stationary combustion. Version 4.1

& 3

CO2 CH4 N2O CO2e Natural gas 201.944 0.504 0.095 202.543 g CO2e/kWh

Heating Liquefied Petroleum

Scope 1 Gases 227.142 0.504 0.095 227.741 g CO2e/kWh Gas/Diesel oil 2676.492 10.114 5.743 2692.349 g CO2e/liter

GHG Protocol (2015) Refrigeration and Air

& 3 GWP

Conditioning Equipment calculation tool

Scope 1 R-404A 3260 Refrigerants R-410A 1725

EPA Federal Register; Revisions to the Greenhouse Gas Reporting Rule, 2013 Type Diesel 10245.32 g CO2e/gal Diesel 2697.49 g CO2e/L Gasoline/Petrol 8814.48 g CO2e/gal Scope 1 & 3

Transport Fuel Gasoline/Petrol 2319.683 g CO2e/L

DEFRA UK Government Greenhouse gas reporting: conversion factors 2017

CO2 CH4 N2O CO2e Travel Scope 3 Business g CO2e/passenger.km (Average all 280.71 0.01533761 1.39857143 282.123909 Business Air Travel flight types)

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Notes to the Statement of Greenhouse Gas Emissions and Water Withdrawal For the year ended December 31, 2018

US Environmental Protection Agency eGRID 2016 (Published 2018):

eGRID CO2 CH4 N2O CO2e eGRID Subregion Name Acronym (g/kWH) (g/kWH) (g/kWH) (g/kWH) AKGD ASCC Grid 486.375 0.035 0.005 488.639 AKMS ASCC Miscellaneous 228.212 0.010 0.002 228.997 AZNM WECC Southwest 473.387 0.036 0.005 475.838 CAMX WECC 239.433 0.015 0.002 240.352 ERCT ERCOT All 457.743 0.034 0.005 459.975 FRCC FRCC All 458.889 0.034 0.005 461.008 HIMS HICC Miscellaneous 522.543 0.043 0.007 525.578 HIOA HICC Oahu 754.269 0.082 0.013 759.865 MROE MRO East 756.684 0.071 0.012 761.711 MROW MRO West 561.915 0.052 0.009 565.820 NEWE NPCC New England 253.174 0.041 0.005 255.696 NWPP WECC Northwest 295.377 0.028 0.004 297.286 NYCW NPCC NYC/Westchester 288.397 0.010 0.001 288.972 NYLI NPCC Long Island 534.475 0.057 0.007 537.954 NYUP NPCC Upstate NY 133.655 0.010 0.001 134.236 RFCE RFC East 343.902 0.023 0.004 345.687 RFCM RFC 576.987 0.030 0.008 580.094 RFCW RFC West 564.011 0.049 0.009 567.655 RMPA WECC Rockies 620.406 0.062 0.009 624.491 SPNO SPP North 640.628 0.068 0.010 645.082 SPSO SPP South 566.230 0.043 0.007 569.190

: US Purchased Electricity GHG Emission Factors (Location Based) Electricity GHG Purchased : Emission US SRMV SERC Valley 380.512 0.023 0.003 381.992 SRMW SERC Midwest 731.455 0.037 0.012 735.933 SRSO SERC South 494.129 0.039 0.006 496.735 Scope 2 SRTV SERC Valley 537.701 0.042 0.008 540.969 SRVC SERC /Carolina 365.269 0.030 0.005 367.467 US Average US Average 452.884 0.036 0.006 455.480

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Notes to the Statement of Greenhouse Gas Emissions and Water Withdrawal For the year ended December 31, 2018

International Energy Agency (IEA 2016) (Published 2018)

CO2 CH4 N2O CO2e Country (g/kWH) (g/kWH) (g/kWH) (g/kWH) Australia 758.70 0.20 3.00 761.90 Brazil 120.00 0.10 0.20 120.30 Canada 149.50 0.20 0.70 150.40 France 52.30 0.10 0.20 52.60 India 725.80 0.70 4.10 730.60

: International Purchased Electricity Electricity Purchased : International Russia 357.80 0.20 0.80 358.80 South Africa 945.20 0.30 4.50 950.00 GHG Emission Factors (location based)

Scope 2 United Kingdom 281.70 0.60 1.30 283.60

RE-DISS - European Residual Mixes (Published 2019)

CO2e Country (g/kWH)

(Market based) France 53.18 Purchased Electricity Purchased Scope 2: International GHG Emission Factors United Kingdom 380.96

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Notes to the Statement of Greenhouse Gas Emissions and Water Withdrawal For the year ended December 31, 2018

International Energy Agency (IEA 2016) (Published 2018) CO2 CH4 N2O CO2e Country (g/kWH) (g/kWH) (g/kWH) (g/kWH)

Angola 149.5 0.2 0.7 150.4 Antigua 213.0 0.3 0.6 213.9 Argentina 376.0 0.3 0.6 376.9 Armenia 725.8 0.7 4.1 730.6 Aruba 213.0 0.3 0.6 213.9 Australia 758.7 0.2 3.0 761.9 Austria 150.9 0.3 0.6 151.8 Azerbaijan 433.2 0.2 1.6 435.0 Bahamas 213.0 0.3 0.6 213.9 Bahrain 704.6 0.3 0.4 705.3 Bangladesh 561.9 0.3 0.5 562.7 Barbados 213.0 0.3 0.6 213.9 Belarus 377.7 0.2 0.2 378.1 Belgium 171.8 0.5 0.8 173.1 Bermuda 213.0 0.3 0.6 213.9 Bolivia 483.3 0.8 1.2 485.3 Bonaire 464.2 0.4 1.6 466.2 Botswana 1347.7 0.4 6.4 1,354.5 Brazil 120.0 0.1 0.2 120.3 Brunei 605.4 0.3 0.3 606.0 Bulgaria 471.7 0.1 2.0 473.8 Cambodia 534.0 0.3 2.5 536.8

(Location Based) (Location Factors Emission GHG Electricity Purchased 3: Scope Canada 149.5 0.2 0.7 150.4 Chile 442.8 0.2 1.7 444.7 China 627.4 0.3 3.0 630.7 Colombia 220.2 0.3 0.8 221.3

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Notes to the Statement of Greenhouse Gas Emissions and Water Withdrawal For the year ended December 31, 2018

CO2 CH4 N2O CO2e Country (g/kWH) (g/kWH) (g/kWH) (g/kWH) Columbia 213.0 0.3 0.6 213.9 Cost Rica 12.0 0.0 0.0 12.0 Costa Rica 12.0 0.0 0.0 12.0 Croatia 229.5 0.1 0.9 230.5

Curacao 510.4 0.5 1.2 512.1 Cyprus 657.6 0.6 1.5 659.7 Czech Republic 530.2 0.1 2.2 532.5 Denmark 206.6 0.1 1.0 207.7 Dominica 213.0 0.3 0.6 213.9 Dominican Republic 598.5 0.5 1.6 600.6 Ecuador 279.5 0.6 1.1 281.2 Egypt 459.5 0.3 0.5 460.3 El Salvador 262.6 1.7 2.8 267.1 Finland 116.6 0.2 0.6 117.4 France 52.3 0.1 0.2 52.6 92.5 0.0 0.1 92.6 Germany 446.7 0.3 2.0 449.0 Ghana 200.1 0.2 0.3 200.6 Gibraltar 755.7 0.7 1.7 758.1 Grand Cayman 213.0 0.3 0.6 213.9 Greece 520.3 0.2 1.8 522.3 Grenada 213.0 0.3 0.6 213.9 Guadeloupe 52.3 0.1 0.2 52.6

(Location Based) (Location Factors Emission GHG Electricity : Purchased 489.6 0.3 1.9 491.8 Guatemala 407.7 5.2 9.8 422.7 Guyana 213.0 0.3 0.6 213.9 Scope 3 Honduras 385.0 1.0 1.9 387.9 Hong Kong 734.8 0.2 2.8 737.8 Hungary 272.5 0.4 1.4 274.3 Iceland 0.3 0.0 0.0 0.3 India 725.8 0.7 4.1 730.6 Indonesia 729.1 0.3 2.8 732.2

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Notes to the Statement of Greenhouse Gas Emissions and Water Withdrawal For the year ended December 31, 2018

CO2 CH4 N2O CO2e Country (g/kWH) (g/kWH) (g/kWH) (g/kWH) Iraq 1056.3 1.0 2.3 1059.6 Ireland 413.4 0.3 1.3 415.0 Israel 566.2 0.2 1.7 568.1 Italy 330.6 0.4 1.0 332.0 Jamaica 656.8 0.6 1.5 658.9 Japan 543.8 0.4 1.7 545.9 Jordan 496.7 0.3 0.4 497.4 Kazakhstan 504.7 0.2 1.9 506.8 Kenya 188.2 0.3 0.6 189.1 Korea 521.4 0.2 1.9 523.5 Kosovo 1125.1 0.3 5.0 1130.4 Kuwait 620.7 0.5 1.1 622.3 Kyrgyzstan 556.4 0.3 1.9 558.6 Latvia 117.0 0.1 0.1 117.2 Lebanon 706.5 0.7 1.7 708.9 Lesotho 589.4 0.3 1.9 591.6 Lithuania 139.4 0.3 0.5 140.2 Luxembourg 205.2 1.4 2.2 208.8 Malawi 589.4 0.3 1.9 591.6 Malaysia 654.9 0.3 2.3 657.5 Malta 651.2 0.6 1.5 653.3 Martinique 52.3 0.1 0.2 52.6 Mauritius 788.5 2.2 6.1 796.8 Mexico 464.3 0.4 1.1 465.8 Military - Africa 589.4 0.3 1.9 591.6 Military - Asia 614.5 0.4 2.6 617.5 Military - Europe 309.7 0.2 1.1 311.0 Military - Europe 309.7 0.2 1.1 311.0

(Location Based) (Location Factors Emission GHG Electricity Purchased 3: Scope Military - Latin 365.1 0.2 1.3 366.6 America Military - MENA 589.4 0.3 1.9 591.6 Military - US 365.1 0.2 1.3 366.6 Military-Asia 614.5 0.4 2.6 617.5 Military-Europe 309.7 0.2 1.1 311.0 Military-Latin 365.1 0.2 1.3 366.6 America Military-MENA 589.4 0.3 1.9 591.6 Moldova 501.4 0.2 0.3 501.9

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Notes to the Statement of Greenhouse Gas Emissions and Water Withdrawal For the year ended December 31, 2018

CO2 CH4 N2O CO2e Country (g/kWH) (g/kWH) (g/kWH) (g/kWH) Mongolia 1194.6 0.3 5.3 1,200.2 Morocco 680.9 0.2 2.7 683.8 Mozambique 67.2 0.0 0.0 67.2 Myanmar 352.2 0.2 0.2 352.6 Namibia 58.5 0.0 0.3 58.8

Nepal 725.8 0.7 4.1 730.6 Netherlands 464.2 0.4 1.6 466.2 ased) New Zealand 104.7 0.0 0.1 104.8 Nicaragua 345.5 3.1 5.2 353.8 Nigeria 413.6 0.2 0.2 414.0 ocation B ocation

L Norway 8.0 0.0 0.0 8.0 Oman 471.1 0.2 0.3 471.6 Pakistan 391.8 0.4 0.7 392.9 Panama 241.1 0.4 1.1 242.6 Paraguay 0.1 0.0 0.0 0.1 Peru 263.9 0.2 0.5 264.6 Philippines 606.7 0.3 2.6 609.6 Poland 719.6 0.3 3.3 723.2 Portugal 286.7 0.4 1.4 288.5 213.0 0.3 0.6 213.9 Qatar 486.4 0.2 0.3 486.9 Romania 320.6 0.1 1.2 321.9 Russia 357.8 0.2 0.8 358.8 Saipan 489.6 0.3 1.9 491.8 Saudi Arabia 713.6 0.5 1.1 715.2 Serbia 729.2 0.2 3.2 732.6 Singapore 393.6 0.6 1.0 395.2

( Factors Emission GHG Electricity Scope Purchased 3: Slovakia 157.8 0.1 0.6 158.5 Slovenia 258.7 0.1 1.1 259.9 South Africa 945.2 0.3 4.5 950.0 Spain 245.8 0.3 1.0 247.1 Sri Lanka 606.8 0.4 2.5 609.7 St. Kitts 213.0 0.3 0.6 213.9 St. Lucia 213.0 0.3 0.6 213.9 St. Maarten 213.0 0.3 0.6 213.9

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Notes to the Statement of Greenhouse Gas Emissions and Water Withdrawal For the year ended December 31, 2018

CO2 CH4 N2O CO2e Country (g/kWH) (g/kWH) (g/kWH) (g/kWH) St. Vincent 213 0.3 0.6 213.9 Suriname 425.5 0.4 1 426.9 Swaziland 589.4 0.3 1.9 591.6 Sweden 12.2 0.0 0.1 12.3 Switzerland 27.9 0.2 0.3 28.4 Taiwan 587.0 0.4 2.3 589.7 Tanzania 251.9 0.2 0.3 252.4 Thailand 477.2 1.8 3.6 482.6 Trinidad 538.1 0.3 0.3 538.7 Tunisia 434.9 0.2 0.2 435.3 Turkey 464.5 0.1 1.5 466.1 Uganda 589.4 0.3 1.9 591.6 UK 278.2 0.6 1.3 280.1 Ukraine 422.7 0.1 1.8 424.6 United Arab 660.8 0.3 0.4 661.5 Emirates United 278.2 0.6 1.3 280.1 Kingdom United 452.9 0.036 0.006 455.5 States* USVI 489.6 0.3 1.9 491.8 Venezuela 301.1 0.2 0.4 301.7 Vietnam 448.6 0.1 1.6 450.3

Scope 3: Purchased Electricity GHG Emission Factors (Location Based) (Location Factors Emission GHG Electricity Purchased 3: Scope West Bank 655.2 0.4 0.8 656.4 Zambia 52.9 0.0 0.2 53.1 Zimbabwe 868.6 0.4 4.4 873.4

*US Environmental Protection Agency eGRID Published in 2018 (US Average)

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Notes to the Statement of Greenhouse Gas Emissions and Water Withdrawal For the year ended December 31, 2018

Global Warming Potentials The GHG emissions were calculated using the Global Warming Potentials (GWP) from the International Panel on Climate Change (IPCC) Fifth Assessment Report, as shown for gases below, and the country appropriate emission factors listed above.

Global Warming Potentials (GWP) from the International Panel on Climate Change (IPCC) Fifth Assessment Report (AR5) CO2 1 CH4 28 N2O 265

Green energy purchases are reflected in the Company’s market-based Scope 2 GHG emissions. The Company has not traded, sold, purchased, transferred or banked any carbon allowances.

Note 3: Scope 1, Scope 2 and Scope 3: GHG Emissions by Type The following table presents the Company’s GHG Emissions by scope and greenhouse gas* for the reporting period in metric tonnes:

CH4 N20 HFC CO2 Emissions CO2e Emissions Emissions Emissions Emissions (mt)** (mt) (mt)** (mt)** (mt)

Scope 1 43,097.97 98.05 18.56 4,831.92 48,046.50 Scope 2* 155,095.33 55.73 288.15 0.00 155,439.22 Scope 3 28,793,462.22 5,901.80 1,390.05 141,111.95 28,941,866.03 Total 28,991,655.53 6,055.58 1,696.77 145,943.87 29,145,351.75

*Scope 2 data reflects the location-based approach.

** Transportation, purchased goods, and end of life were not broken into CH4 and N2O

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Notes to the Statement of Greenhouse Gas Emissions and Water Withdrawal For the year ended December 31, 2018 Note 4: Scope 2 GHG Emissions by Approach

The following table presents the Company’s GHG Emissions by scope and method for the reporting period in metric tonnes of CO2e:

Market Based Location Based

CO2e CO2e Emissions Emissions (metric tCO2e) (metric tCO2e)

Scope 1 48,046.50 48,046.50

Scope 2 - Location Based 145,621.97 155,439.22 - Residual Mix 13,780.61 0.00

Scope 2 Total 159,402.58 155,439.22

Gross Scope 1 and 2 207,449.08 203,485.72

Adjusted emissions factors due to residual mix are only available in European countries (France, Germany, Netherlands, Spain, & United Kingdom), all other countries are not available, which may result in double counting between electricity consumers.

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Notes to the Statement of Greenhouse Gas Emissions and Water Withdrawal For the year ended December 31, 2018 Note 5: Scope 1 and Scope 2: GHG Emissions by Region (metric tonnes CO2e)

Market Based Location Based Country Scope 1 Scope 2 Total Scope 1 Scope 2 Total Australia 426.04 15,672.33 16,098.37 426.04 15,672.33 16,098.37 Brazil 655.37 83.48 738.85 655.37 83.48 738.85 Canada 122.32 123.65 245.97 122.32 123.65 245.97 France 233.96 334.68 568.64 233.96 331.03 564.99 India 3,027.81 15,302.74 18,330.55 3,027.81 15,302.74 18,330.55 Russia 863.84 3,371.13 4,234.96 863.84 3,371.13 4,234.96 South Africa 396.50 17,730.51 18,127.00 396.50 17,730.51 18,127.00 UK 3,093.11 13,445.93 16,539.04 3,093.11 10,009.62 13,102.73 USA 39,227.56 93,338.14 132,565.70 39,227.56 92,814.73 132,042.29 Total 48,046.50 159,402.58 207,449.08 48,046.50 155,439.22 203,485.72

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