American Meat Institute Foundation Animal Care and Handling Conference

March 18, 2009 Yum! Brands, Inc. • Worlds largest restaurant company (by unit count) with over 34,000 restaurants in over 100 countries and territories

• Parent company of KFC, , , Long John Silver’s and A&W Restaurants

• More than 850,000 employees worldwide

• Yum! Brands in U.S. - more than 20,000 restaurants (nearly 5,500 company and franchise in U.S.)

• Yum! Restaurants International - largest and fastest-growing division with nearly 11,000 restaurants outside U.S.

• Yum! Division - #1 market for new company development worldwide, with more than 2,000 restaurants Guiding Principle

Animal Treatment: We believe treating animals humanely is a key part of our quality assurance efforts. Animals should be free from mistreatment at all times. Our goal is to only do business with suppliers who provide an environment that is free from cruelty, abuse, and neglect. Operating Principles ¾ Animal Welfare is a Not a Competitive Issue ¾ Sound Policies and Audits are Derived from Research and Data ¾ Solicit Advice from Professional Animal Scientists, Veterinarians, and Experts from Academia ¾ Suppliers Must Be “At the Table” ¾ Pursue Genuine Improvements and Benefit; Perception Does Not Constitute Reality ¾ Our Customer is Our Barometer- ACTIVISTS ARE NOT The Fundamentals ¾ Solicit Sound Advice ¾ Engage Business Partners to Effect Real Benefit ¾ Realistic and Thoughtful Review of Technology and Techniques ¾ Establish Considered , Objective Policies and Audit Instruments ¾ Verify in the Field: Audits ¾ Educate the Customer KFC • Animal Welfare Advisory Council • Processing Plant Audit • Farm Level Audit • Policy Review • Technology Survey and Appraisal • Supplier Engagement • Website & Public Affairs KFC Animal Welfare Advisory Council

Dr. Bruce Webster University of Georgia Dr. Paul Siegel Virginia Polytechnic Dr. Charles Hofacre University of Georgia Dr. Wayne Kuenzel University of Arkansas Dr. Kellye Pfalzgraf Tyson Foods Dr. Steve Bolden Pilgrim’s Pride Kenny Raney Simmons Foods 2009: Aligning All Yum Brands

KFC Pizza Hut Taco Bell A&W LJS

Chicken, Beef, Pork, Dairy, Seafood

International: YRI & Yum China Structure The responsibility for Animal Welfare now falls under the corporate umbrella: Yum! Brands, Inc.

And under the supervision of Yum Global Quality Assurance Mike Liewen, VP Yum Global QA

Scott Brooks, DVM, Director of Yum Global QA Program Outline • Establish Species Specific Advisory Bodies • Utilize Existing KFC Audit Program For Poultry • Utilize Existing AMI Audit Program For Pork & Beef • Duplicate Existing KFC Audit Structure: Two Third Party Audits Annually by PAACO Certified Auditors International Opportunities

¾ Cultural Considerations ¾ Regulatory Obligations ¾ Economic Stresses ¾ Technological Limitations ¾ Feeding People ¾ System Marketing Imperative Two Points: Animal Welfare is Not a Competitive Issue ¾Can alignment be achieved for 95% of Food Retailers?

Activist Groups DO NOT Offer Solutions ¾Who seeks the counsel and approval of those who wish to see your business destroyed? Questions & Answers