Yum China : 2Q 2023 Earnings Presentation

Second Quarter 2023 Results

1 August 2023

NYSE: YUMC and HKEX: 9987

Cautionary Statement on Forward-Looking Statements & Non-GAAP Measures

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," "commit," "outlook" 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, investment, dividend and share repurchase plans, liquidity, earnings, performance and returns of Yum China, anticipated effects of population and macroeconomic trends, the expected impact of the COVID-19 pandemic, pace of recovery of Yum China's business, the anticipated effects of our innovation, digital and delivery capabilities and investments on growth, beliefs regarding the long-term drivers of Yum China's business and GHG emissions reduction targets. 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, the changes in public health conditions, including the COVID-19 pandemic, our ability to control costs and expenses, including tax costs, as well as changes in political, economic and regulatory conditions in China. 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 captions "Risk Factors" and "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

Reached New Heights in Second Quarter

RMB to USD rate vs prior year		Q2
Q2: ~6% depreciation					YoY	Vs 19
2021	2022	2023
Total stores	11,023	12,170	13,602	+12%	+55%
Net new stores	298	53	422
				+25%	+25%
Revenue ($bn)1	2.45	2.13	2.65
System sales growth2	+14%	(16)%	+32%
Same-store sales growth2	+5%	(16)%	+15%
Restaurant margin	15.8%	12.1%	16.1%		+400bp	+140bp
Operating profit1 ($mn)	233	81	257	+216%	+26%
Adjusted operating profit1 ($mn)	237	82	259
Net income1 ($mn)	181	83	197	+138%	+11%
Diluted EPS1 ($)	0.42	0.20	0.47

Record Q2 net new stores

1,900+ cities nationwide

Record Q2 revenue

+25% YoY, +25% vs 2019

Operating profit 3x YoY

+26% vs 2019

RGM Strategy

Resilience-Growth-Moat

1 Stated in reported currency, includes the consolidation of Huang Ji Huang from April 2020, Suzhou KFC from August 2020 and Hangzhou KFC from December 2021.

2 Stated on a constant currency basis.

3

First Half Operating Profit Exceeded 2022 Full Year

RMB to USD rate vs prior year		1H
1H: ~7% depreciation				YoY	Vs 19
2021	2022	2023
Total stores	11,023	12,170	13,602	+12%	+55%
Net new stores	517	382	655
				+16%	+26%
Revenue ($bn) 1	5.01	4.80	5.57
System sales growth2	+24%	(10)%	+24%
Same-store sales growth2	+8%	(12)%	+11%
Restaurant margin	17.3%	13.0%	18.3%	+530bp	+160bp
Operating profit1 ($mn)	575	272	673	+147%	+33%
Adjusted operating profit1 ($mn)	582	275	678
Net income1 ($mn)	411	183	486	+166%	+22%
Diluted EPS1 ($)	0.95	0.43	1.15

Record 1H net new stores

On track to full year target

Record 1H revenue

+16% YoY, +26% vs 2019

1H 2023 Operating profit more than 2022 full year

+147% YoY, +33% vs 2019

RGM Strategy

Resilience-Growth-Moat

1 Stated in reported currency, includes the consolidation of Huang Ji Huang from April 2020, Suzhou KFC from August 2020 and Hangzhou KFC from December 2021.

2 Stated on a constant currency basis.

4

Dine-in, Takeaway and Delivery All Grew

DeliveryOff-premise

KFC Delivery

Get extra items at ¥1+,

New delivery member only

% of Company sales1

Delivery sales growth2

% of Company sales1

~37%	~35%	65%+	~65%
55%+
~29%
		+25% vs Q2 22

	Q2	2022	2023	Q2
	2021	~52%
	~43%
~35%	~36%		~41%	~45%
	+9% vs Q2 22
	Q2			Q2

1 Includes KFC (Hangzhou KFC included since December 2021) and Pizza Hut.	5
2 Stated on a constant currency basis.