Sandeep Kohli, Managing Director Sandeep Kohli, Managing Director Yum! India Yum! India
Sandeep Kohli, Managing DirectorSandeep Kohli, Managing Director
Yum! IndiaYum! India
1.1 billion people, 1/6 of the world’s population, growing at 1.5% per year
7%+ GDP growth expected in the future
300 million middle class and growing
Service sector creating huge number of young consumers
400 malls under development, retail landscape changing
India . . . Huge Potential Market for Yum!
Source: Government agencies/Goldman Sachs
Largest, fastest growing Pan India restaurant company
Fully resourced, local management team
Highly educated workforce . . . 90%+ with college degrees
Highly preferred employer
Network of well-resourced, committed franchise partners
Distribution and supply chain in place
Yum! India . . . Strong Capability to Drive Expansion
Pizza Hut India History
Started in 1996
Two franchisees began development
International brand with Indian heart — products, service, assets
Consistently voted as the most trusted food-service brand
Pizza Hut
29
2
127
’96 ’97 ’98 ’99 ’00 ’01 ’02 ’03 ’04 ’05 F
Where We Are Today
8 franchisees
Pizza Hut largest QSR brand in India, growing at 40%
Wide brand appeal, pizzas starting at 50 rupees ($1.10)
31 cities31 cities
Total Restaurants
Established a National Presence
Pune
CochinCoimbatore
Vizag
Baroda
Jodhpur
Agra
Amritsar
Jalandhar
Pondicherry
Surat
Ahmedabad
Ludhiana
Mathura
Meerut
Kanpur
Mysore
Mangalore
Hubli
Vapi
Development on Pace for an Emerging Market
9
132
29
1 2 3 4 5 6 7 8 9 10
Pizza Hut IndiaTotal Restaurants by Market
Pizza HutIndia
KFCChina
Years of DevelopmentYears of Development
Solid Unit Economics in Early Phase
23%Cash Flow Margin (Pre-royalty)
300Cash Investment ($ thousands)
400+Average Unit Volume ($ thousands)
Growth Plan for 2006
5New Cities
Number of New Openings
35New Restaurants
KFC India History
Started in 1995 — first western QSR
Faced political issues in first attempt (’95 – ’96)
Relaunched in ’03 — new asset design, wider vegetarian menu
Equity restaurant opened in Hyderabad in ’05
KFC
11
1
’95 ’96 ’97 ’98 ’99 ’00 ’01 ’02 ’03 ’04 ’05 F
Where We Are Today
5 franchisees and company investment has begun
Developed vegetarian menu . . . 1/3 of population
KFC rice meal starting at 50 rupees ($1.10)
In six cities: Bangalore, Hyderabad, Calcutta, Pune, Chandigarh, Ludhiana
Total Restaurants
KFC Menu
299 40 49 77 87 89 99
36 39 67 73
Vegetarian Items
Vegetarian Meals
Solid Unit Economics in Early Phase
20%Cash Flow Margin (Pre-royalty)
500Cash Investment ($ thousands)
600+Average Unit Volume ($ thousands)
KFC Growth Plan for 2006
3New Cities
Number of New Openings
15New Restaurants
Why We Are So Optimistic about India
Tremendous long-term GDP growth potential
Large middle class, growing rapidly
Open landscape for well-executed brands
Yum! success factors
Infrastructure in place
Local team, supply chain established, well-resourced franchisees
5,000+ strong local Yum! family — deep rooted operating capability
Pizza Hut, a highly trusted brand
Full speed ahead on development