Yum China : Q3 2024 Presentation

Third Quarter 2024 Results

4 November 2024

NYSE: YUMC and HKEX: 9987

Strong Results 3Q24

Amid Challenging Market Conditions

Robust Sales Growth

System sales	Same-store	7 consecutive
growth1	sales growth1	quarters of
YoY:Q3 +4%	-3%	same-store
transaction
	-4% in Q2 2024	growth

Margin Expansion

	OP	Restaurant
	Margin	Margin
Q3 YoY	+100 bps	Steady
YoY on a	+140 bps	+50 bps
comparable basis2

			Strong Key Metric Performance
		Operating	Core Operating	Net	Diluted
		Profit	Profit3	Income	EPS
	YoY:	+15%	+18%	+22%	+33%
	Q3
1 Excludes the impact of foreign exchange ("F/X").
2 Restaurant Margin on a comparable basis excludes Items Affecting Comparability. OP Margin on a comparable basis further excludes foreign exchange impact and special items.
3 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.

Upsizing Capital Returns to Shareholders for 2024 - 2026

Capital Returns to Shareholders1
$mn						FY Target2
							~1,500
					668	833
	473	442				1,055	1,242
166		278
		102
						187
2017	2018	2019	2020	2021	2022	2023	2024
		Dividends	Share repurchase	Q3 YTD

(From 2017 to Nov 1st 2024)	$4.3bn
Total Capital Returned
(By end of Sep 2024)	$3.1bn
Net Cash3

Target to increase capital returns

by 50% in 2024-262

$3bn $4.5bn

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 and share repurchases, as well as shareholders' approval on share

repurchases.	4
3 Refers to $1,193mn cash, $1,338mn short-term investments and $933mn long-term bank deposits and notes, net of $315mn in short-term borrowings.

Opening New Stores to Capture Long-Term Opportunities

Total Stores	15,861
	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'Q3

Net new stores

438 in Q3

1,217 Q3 YTD

Net new unit

contribution to sales

7% in Q31

1 Sales contribution from net new stores (YoY).

5

Penetrating into More Cities - Good New Store Returns

Penetrating More Cities		Healthy New Store Payback2

#1 Western QSR in China1					Net New	Total
						24 Q3 YTD
	987 11,283 ~2,200		Stores	Stores
		% in Tier 3-6	58%	56%
	Net New Stores	Total	Cities
	Q3 YTD	Stores		% of franchise	27%	12%
#1 Casual Dining in China1				24 Q3 YTD	Net New	Total
						Stores	Stores
	294	3,606 800+
	% in Tier 3-6	60%	45%
	Net New Stores	Total	Cities
	Q3 YTD	Stores		% of franchise	7%	5%

~2

~2

~2

~2 ~2 years

2017 2019 2021 2023 2024Q3

3~4	3~4	~3	~3	2~3
		years

2017

2019

2021

2023

2024Q3

~80% of new stores3 turned profitable within 3 months of opening

1. In terms of 2023 system sales.
2. 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 July 2022 to

June 2023.	6
3 Refers to stores opened in the past two years.

Achieved Double-Digit Delivery Sales Growth

over the Past Decade

Delivery Sales Growth YoY

+18%	+14%
Q3	Q3 YTD

+19%

YoY in Q3

~34% ~32%

+11%

YoY in Q3

• KFC and Pizza Hut both gained market share on delivery platforms
• Took actions to reduce rider costs - e.g., introducing platform riders at select locations, where their quality matches our dedicated riders

~53%

~31% ~29%

~29%

~35% ~39%

~18%

~70%

~5%

~25%

~55% ~52%

~9% ~10%

~36% ~38%

Q3 YTD'19 Q3 YTD'23 Q3 YTD'24

Q3 YTD'19 Q3 YTD'23 Q3 YTD'24

Sales mix by channels	Dine-in	Takeaway	Delivery
% of Company sales

7

Digital Sales Exceeded $7 Billion in First Nine Months;

Total Members Surpassed 510 Million

Digital Sales Growth		Member Growth

Digital orders1

Members (mn)3	Member sales %4
	65%	65%

80%

86% 89% 89% 90%

60%	63%	62%

52%	510+
470+

55%>$7bn

Digital Sales2

Q3 YTD

2019 2020 2021 2022 2023 2024 Q3YTD

410+

360+

300+

240+

2019 2020 2021 2022 2023 2024 Q3YTD

1. Includes KFC (Hangzhou KFC since December 2021 and Suzhou KFC since August 2020) and Pizza Hut.
2. Sales at Company-owned stores where orderings were placed digitally.
3. KFC and Pizza Hut loyalty programs combined, as of period-end.
4. As a percentage of KFC and Pizza Hut's system sales in aggregate. 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 terminals, provided members could otherwise be identified as members. 2021 data restated to reflect this change. Before restatement, it was 61% in 2021 Q3 YTD for KFC and	8
Pizza Hut combined.

KFC Continuing to Thrive

	+6%			Q3 2024	352
		(2)%
System sales	Same-store	Net new stores
	growth1	sales growth1
`	18.3%			15.7%
Restaurant margin	OP margin
	(30) bps YoY			+10 bps YoY
	+30 bps YoY on a		+60 bps YoY on a
	comparable basis2		comparable basis2
	+6% YoY		+9% YoY
Operating profit		Core operating profit3

1. Excludes the impact of foreign exchange.
2. Restaurant Margin on a comparable basis excludes Items Affecting Comparability. OP Margin on a comparable basis further excludes foreign exchange impact and special items.
3. Defined as Operating profit adjusted for Special Items, further excluding Items Affecting Comparability and the impact of F/X.

Photo: KFC store in Chengdu City Center (成都领地中心)

Offering Innovative Products and Great Value

Breathing Fresh Energy into	Providing Great Value-for-money and Emotional Value
our Flagship Products

Original recipe chicken with curry	Spicy beef wrap	Crazy Thursday - chicken nugget with cumin,	Genshin Impact campaign includes
gravy and mashed potatoes		egg tart, single-bone chicken and original	themed stores, special combos,
		recipe chicken	souvenirs and game pack	10

Side-by-side KCOFFEE Cafes

Reached 500 Locations

Note: Side-by-side KCOFFEE Cafes are considered part of existing KFC stores and are not counted separately in Yum China's total store count.	11
Photos: KFC store in Chengdu City Center (成都领地中心)