CALCULATION OF RATIOS OF YUM

2014 2015

1. PROFITABILITY RATIOS

Trading revenue 4503 4356

(-) Food and paper 1471 1348
(-) Operating Expenses 1227 1168

GROSS PROFIT 1805 1840

G.P RATIO 40.08439 42.24059

Food and paper 1471 1348

Payroll and employee benefits
1172 1131
Occupancy and other operating
expenses
1227 1168

General and administrative expenses 1028 1099

Franchise and license expenses 159 237

OPERATING EXPENSES 5057 4983

112.3029
 2016

4200
1269
1120

1811

43.11905

1269

1109

1120

1161
202

4861
 HORIZONTAL ANALYSIS OF
For Years Ended Mar 31-
2016 % 2015 %

ASSETS
Current assets:
Cash and cash equivalent 704 12.85141 737 9.126935
Accounts and notes receivables,net 370 6.75429 377 4.668731
Inventories 36 0.657174 229 2.835913
Prepaid expenses and other current assets 238 4.344651 242 2.996904
Advertising cooperative assets ,restricted 134 2.446148 103 1.275542
TOTAL CURRENT ASSETS 1482 27.05367 1688 20.90402
Property plant and equipment, net 2160 39.43045 4189 51.87616
Goodwill 541 9.875867 656 8.123839
Intangible assets, net 151 2.75648 271 3.356037
Investment in unconsolidated affiliates _ _ 61 0.755418
Other assets 370 6.75429 534 6.613003
Deferred income taxes 774 14.12924 676 8.371517
TOTAL ASSETS 5478 100 8075 100

LIABILITIES AND SHAREHOLDERS EQUITY (DEFICIT)

Current liabilities:
Accounts payable and other current liabilities 1132 20.66448 1985 24.58204
Income taxes payable 37 0.675429 77 0.95356
Short-term borrowings 66 1.204819 923 11.43034
Advertising cooperative liabilities 134 2.446148 103 1.275542
TOTAL CURRENT LIABILITIES 1369 24.99087 3088 38.24149
Long term debt 9061 165.4071 3054 37.82043
Other liabilities and deferred credit 704 12.85141 958 11.86378
TOTAL LIABILITIES 11134 203.2494 7100 87.9257
Redeemable non controlling interest _ _ 6 0.074303
Shareholder's equity:
Retained earnings(accumulated deficit) -5223 -95.345 1150 14.24149
Accumulated other comprehensive income(loss) -433 -7.90434 -239 -2.95975
TOTAL SHAREHOLDER'S EQUITY -5656 -103.249 911 11.28173
Non controlling interest _ _ 58 0.718266
TOTAL LIABILITIES, NON-CONTROLLING INTEREST
AND SHAREHOLDER'S EQUITY 5478 100 8075 100
 YUM
ORIZONTAL ANALYSIS OF CONSOLIDATED BALANCE SHEETS
For Years Ended Mar 31-2014, Mar 31-2015 and Mar 31-2016
2014 %

578 6.935445
325 3.899688
301 3.611711
254 3.047756
95 1.139909
1553 18.63451
4498 53.97168
700 8.399328
318 3.815695
52 0.62395
560 6.719462
653 7.835373
8334 100

1970 23.63811
77 0.923926
267 3.203744
95 1.139909
2409 28.90569
3077 36.92105
1235 14.81881
6721 80.64555
9 0.107991

1737 20.84233
-190 -2.27982
1547 18.56251
57 0.683945

8334 100
 YUM (P/L)
common size statement
INCOME 2014 2015 2016

Revenue from sale of goods and

services (Net of discounts)

4503 100.00% 4356 100.00% 4200 100.00%

Franchise and license fees and

income

2084 46.28% 2084 47.84% 2166 51.57%

Total Revenue (I) 6587 146.28% 6440 147.84% 6366 151.57%
EXPENSES

Food and paper

1471 32.67% 1348 30.95% 1269 30.21%

Payroll and
employee benefits

1172 26.03% 1131 25.96% 1109 26.40%

Occupancy and
other operating expenses

1227 27.25% 1168 26.81% 1120 26.67%

Company restaurants

3870 85.94% 3647 83.72% 3498 83.29%

General and administrative
expenses

1028 22.83% 1099 25.23% 1161 27.64%

Franchise and license expenses

159 3.53% 237 5.44% 202 4.81%

Closures and impairment

(income) expenses

18 0.40% 15 0.34% 14 0.33%

Refranchising (gain) loss

-16 -0.36% 23 0.53% -141 -3.36%

Other (income) expense

11 0.24% 17 0.39% 7 0.17%
Total cost and Expenses 5070 112.59% 5038 115.66% 4741 112.88%

EARNINGS BEFORE INTEREST

and TAX

1517 33.69% 1402 32.19% 1625 38.69%

Interest expense, net

143 3.18% 141 3.24% 307 7.31%

Income Before Income Taxes

1374 30.51% 1261 28.95% 1318 31.38%

Income tax provision

368 8.17% 325 7.46% 324 7.71%

Income from continuing
operations

1006 22.34% 936 21.49% 994 23.67%

Income from discontinued

operations, net of tax

45 1.00% 357 8.20% 625 14.88%

Net Income – YUM! Brands, Inc.

1051 23.34% 1293 29.68% 1619 38.55%