Yum China : 1Q 2024 Earnings Presentation

First Quarter 2024 Results

30 April 2024

NYSE: YUMC and HKEX: 9987

Cautionary Statement

This presentation contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. We intend all forward-looking statements to be covered by the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. . Forward-looking statements generally can be identified by the fact that they do not relate strictly to historical or current facts and by the use of forward-looking words such as "expect," "expectation," "believe," "anticipate," "may," "could," "intend," "belief," "plan," "estimate," "target," "predict," "project," "likely," "will," "continue," "should," "forecast," "outlook," "commit" or similar terminology. These statements are based on current estimates and assumptions made by us in light of our experience and perception of historical trends, current conditions and expected future developments, as well as other factors that we believe are appropriate and reasonable under the circumstances, but there can be no assurance that such estimates and assumptions will prove to be correct. Forward-looking statements include, without limitation, statements regarding the future strategies, growth, business plans, investments, store openings, capital expenditures, dividend and share repurchase plans, CAGR for system sales, operating profit and EPS, earnings, performance and returns of Yum China, anticipated effects of population and macroeconomic trends, pace of recovery of Yum China's business, the anticipated effects of our innovation, digital and delivery capabilities and investments on growth and beliefs regarding the long-term drivers of Yum China's business. Forward-looking statements are not guarantees of performance and are inherently subject to known and unknown risks and uncertainties that are difficult to predict and could cause our actual results or events to differ materially from those indicated by those statements. We cannot assure you that any of our expectations, estimates or assumptions will be achieved. The forward-looking statements included in this presentation are only made as of the date of this presentation, and we disclaim any obligation to publicly update any forward-looking statement to reflect subsequent events or circumstances, except as required by law. Numerous factors could cause our actual results or events to differ materially from those expressed or implied by forward-looking statements, including, without limitation: whether we are able to achieve development goals at the times and in the amounts currently anticipated, if at all, the success of our marketing campaigns and product innovation, our ability to maintain food safety and quality control systems, changes in public health conditions, our ability to control costs and expenses, including tax costs, as well as changes in political, economic and regulatory conditions in China, and those set forth under the caption "Risk Factors" in our Annual Report on Form 10-K and subsequent Quarterly Reports on Form 10-Q). In addition, other risks and uncertainties not presently known to us or that we currently believe to be immaterial could affect the accuracy of any such forward-looking statements. All forward-looking statements should be evaluated with the understanding of their inherent uncertainty. You should consult our filings with the Securities and Exchange Commission (including the information set forth under the caption "Management's Discussion and Analysis of Financial Condition and Results of Operations" in our Annual Report on Form 10-K and subsequent Quarterly Reports on Form 10-Q) for additional detail about factors that could affect our financial and other results. This presentation includes certain non-GAAP financial measures. Reconciliation of these non-GAAP financial measures to the most directly comparable GAAP measures are included in this presentation where indicated. You are urged to consider carefully the comparable GAAP measures and reconciliations.

2

A Solid First Quarter 2024

Solid Growth Despite High Base Last Year
System Sales Growth1		Diluted EPS		Operating Profit
On top of 17% growth in Q1'23		Grew YoY to $0.71		OP	Core OP2
+6% YoY		+4% or +10% ex F/X		$374 mn	$396 mn
Fueling Growth and Returning to Shareholders
Net New Stores		Total Stores		Dividends & Share Repurchases
Record Q1 openings		Reached key milestone		~2 times Q1 Operating Profit
378		15,022		$745 mn

1 Exclude the impact of foreign exchange
2 Core Operating Profit is defined as Operating Profit adjusted for Special Items, further excluding items affecting comparability and the impact of F/X. The Company uses Core Operating Profit for the purposes of	3
evaluating the performance of its core operations.

Surpassed 15,000 Stores with Accelerated Store Openings

Total Stores	15,022
		<4 years
		>10,000
		8 years
		>5,000
		25 years
	1
1987 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 24'Q1

378 net new stores in Q1

8% net new unit

contribution to sales in

Q11

Targets

• To open 1,500-1,700
  Net New Stores in 2024
• To reach 20,000 stores by 2026

1 Sales contribution from net new stores (YoY)

4

Maintaining Healthy New Store Payback

Through Flexible Store Formats and Reduced Capex

#1 Western QSR in China1

Penetrating into More Cities		Reduced		Healthy New
Leveraging Franchisees Strategically		Average Capex		Store Payback3

10,603 StoresTotal

307 Net New Stores

#1 Casual Dining in China1

3,425 Total

Stores

113 Net New Stores

24 Q1	Net New	Total
Stores	Stores
% in Tier 3-6	68%	56%
% of franchise	19%	11%

24 Q1	Net New	Total
Stores	Stores
% in Tier 3-6	60%	45%
% of franchise	-	5%

2,000+	~1.5 mn	~2	years
cities	RMB /store2

750+	~1.2 mn	~2-3years
cities	RMB / store2

1. In terms of system sales
2. Refers to stores opened in full year 2023
3. Refers to Average Pre-tax Cash Payback Period assuming yearly cashflow is same as year 1, after deduction of 3% license fee and before G&A expenses and income tax; based on stores opened between January

2022 to December 2022.

5

Record Cash Return to Shareholders, Supported by Strong Cash Generation and Healthy Cash Position

Returns to Shareholders1		FY Target2	$3.7bn $3bn+ $3.1bn
$mn
						~1,500	Returned since		Target to return	Net Cash by end
								spin-off		in 2024-262		of Mar 2024
						833	745	Quarterly Cash Dividends	+23%
					668	$0.10	$0.12	$0.13	.16
	473	442
		278			681	Q4 2017		Q4 2018	Q1 2023	Q1 2024
166
		102					Share Repurchases Plan in 2024
							64
							$1.25bn	$750mn	$500mn
2017	2018	2019	2020	2021	2022	2023	2024
							Q1
		Dividends	Share repurchase				Rule 10b5-1		Rule 10b-18
											In the U.S. & Hong Kong

1. Includes dividends and share repurchases. Share repurchase amount excludes 1% excise tax and commissions.
2. Based on current expectations, which may change based on market conditions, capital needs or otherwise. Subject to Board approval on dividends & share repurchases, as well as shareholders' approval on share

repurchases.

6

Driving Incremental Transactions and Sales

2024Q1	System		System		Same-store
+6% Sales Growth		+15%Transactions Growth		+5% Transactions Growth

Exciting New Products

Widen Price Range

Collaborate with IPs

Expand Customer Base

Happy fried egg in spicy sauce

chicken burger

Double layer beef burger combo at

RMB 19.9

Chinese New Year combo with SHANGHAI ANIMATION FILM STUDIO Co.Ltd toys

Semester card at RMB 19.9

7

Delivery Sales Grew Double Digits

Delivery Sales +12% YoY in Q1

• KFC lowered delivery fee and expanded one-person meal options to attract smaller orders
• Took actions to reduce rider costs - e.g., introducing platform riders at select locations, where their quality matches our dedicated riders

~31%

~32%

~53%

~71%

~53%

~53%

~33%

~29%

~10%

~10%

~29%

~5%

~36%

~39%

~37%

~37%

~24%

~18%

Q1'19

Q1'23

Q1'24

Q1'19

Q1'23

Q1'24

Sales mix by channels

Dine-in

Takeaway

Delivery

% of Company sales

8

Engaging Members to Enhance Loyalty

Grow Digital Sales		Grow Members		Drive Online Traffic

Digital order1				Members (mn) 2			Member sales %3
	89%	89%	89%			63%	62%	65%	65%
86%	60%
							~485
80%				52%					470+
							410+

Mini program

55%

360+

Super APP

300+

240+

Delivery

Local

services

aggregators

2019

2020

2021

2022

2023

2024 Q1

2019

2020

2021

2022

2023

2024 Q1

1. Includes KFC (Hangzhou KFC since December 2021 and Suzhou KFC since August 2020) and Pizza Hut.
2. KFC and Pizza Hut loyalty programs combined, as of period-end.
3. Includes KFC and Pizza Hut. From 2022, in addition to transactions in which members self-identified as members (i.e., through member QR code, using member coupons/vouchers, ordering via Super-Apps or

other own channels), member sales also include 1) transactions in which members order using our coupons/vouchers through third party e-commerce platforms, 2) Pizza Hut tableside orders paid through POS	9
terminals, provided members could otherwise be identified as members. 2021 data restated to reflect this change. Before restatement it was 61% in 2021 Q1 for KFC and Pizza Hut combined.

KFC Continues to Thrive

`

Q1 2024

+7%

System sales growth1

307

Net new stores

19.3%

Restaurant margin

$372mn

Operating profit

Photo: KFC store in Wuhan MAX Zone (武汉MAX科技园) 1Exclude the impact of foreign exchange