1. Brands… andthe restaurant/fast food industry Module10Presentation Curtis Vercruysse

2. Company Snapshot: Over 40,000 restaurants-KFC, Pizza Hut, and Taco Bell World leaders of chicken, pizza, and Mexican style food categories Four Divisions: U.S., China, International, India Over 70% of profits from outside U.S. Restaurants are 20% company owned, 75% franchisee owned, and 5% licensee owned

3. Revenue and Restaurant Breakdown:

4. Game Changer…

5. Sensitivity Analysis

6. Balance Sheet: ASSETS

7. Balance Sheet: LIABILITIES AND EQUITY

8. Pension Breakdown

9. Deferred Taxes Breakdown

10. Income Statement

11. Attribution of Equity

12. Other Notes • Assumed marginal tax rate of 37% seems appropriate, as effective tax rate has been increasing and was >30% in 2013 • Would have liked to see more detail on some of Yum’s expenses in the balance sheet • Breakdown “food and paper” by restaurant or geography • More detail on “occupancy and other related expenses” • Breakdown “general and administrative” • Advertising expense information

13. Questions???