Background of KFC

Background of KFC The first KFC restaurant was opened in 1973 on Jalan Tunku Abdul Rahman. Today there are more than 390 KFC Restaurants nationwide and still counting. Great tasting chicken has become synonymous with KFC; and has been enjoyed by Malaysians ever since. In fact, KFC Malaysia has developed a distinctive Malaysian personality of its own.

Especially for Malaysians We are an establishment that is run by Malaysians and managed by Malaysians; we took it upon ourselves to create a selection of food that would make Malaysia proud on the international scene. Kentucky Nuggets, for example, was conceived in Malaysia and then found its way to KFC worldwide. Today, Kentucky Nuggets is one of KFC's successes. "Meals on Wheels" was also developed in Malaysia. It was created for the purpose of bringing great tasting chicken to places where a KFC Restaurant might not be available. So, any offices or companies can hold functions at any place and anytime! All our achievements add to our Malaysian identity. But it has only been possible because you invited us to share your lives.

Something for Malaysians Thank You, Malaysia... Ultimately, KFC Malaysia has a lot to thank Malaysians for. Especially their support through the years. At KFC, we recognize that improving the quality of life and economic vitality of the communities in which we conduct business is in the best interest of our company, our patrons, our employees and our industry. And to show our appreciation for Malaysian support for making us a market leader; all of us here at KFC Malaysia wanted to give something back to the community. So, Projek Penyayang KFC was developed to provide food to 80 homes every quarter. Projek Penyayang KFC was founded in 1995 in an effort to enable thousands of orphans and underprivileged children to enjoy KFC meals. Over 6,500 children are treated to a finger lickin' good food every year. This year marks the 10th Anniversary of Projek Penyayang. This in turn, was followed by Tabung Penyayang KFC, a charitable fund, whose sole purpose was to help orphanages in Malaysia. Tabung Penyayang was founded in 1997, to help children and the needy through various CSR programme. Tabung Penyayang KFC is a unique fund as it represents a percentage of revenue generated from the sale of KFC's Kids' Fun Meals. In August 1999, KFC introduced its 'Tabung Penyayang' KFC Collection Box as an extension to the Tabung Penyayang KFC Programme. Collection boxes are placed at all KFC restaurants enabling customers to contribute and be apart of this charitable effort.

Today, 3 of KFC Restaurants are run by speech and hearing-impaired staffs that was designed to serve physically challenged individuals. They serve to dispel the myth that a disability impede a person from leading a normal life and gives them a sense of confidence and self-esteem. These 3 restaurants are located in Peninsular and East Malaysia. First is at Sentul Raya, in Kuala Lumpur, second is at Saujana, in Sarawak and the third is at Tanjung Aru, Sabah. Currently, we are still conducting other programmes for Malaysian charities. And we will continue to extend a corporate helping hand whenever and wherever we can. 1 OUR PASSION: To satisfy our customers every time they visit our restaurants and to do it better than our competitors • •

KFC and Ayamas offer customers delicious food, good value, and customerfocused teams Our associates in all our restaurants and integrated Strategic Business Units are trained to serve customers in the best possible way

2 OUR FORMULA FOR SUCCESS: People capability comes first - satisfied customers and profitability follow •

If we have the right people, properly trained, then satisfied customers and profitability will follow o We recognize that we are a people-dependent business o There are about 26,000 people working for the KFCH o Our people must be more motivated, better trained, and better resourced than the competition. This will ensure that we have happy customers, which will lead to more profit.

3 HOW WE LEAD: Know and drive the business, and build and align teams • •

Take responsibility for and be passionate about exceeding customer needs Be committed to executing 100% CHAMPS at the restaurants. This means ensuring that o C : Cleanliness is maintained at our restaurants at all times o H : We are hospitable and courteous at all times

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A : We always ensure that orders are taken accurately M : We maintain our restaurants to the best standards P : Our products are of the highest quality S : Our service is speedy

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Support restaurant teams with reliable services and tools Act like an owner Know and drive the business o Understand the demands and issues affecting the business o Demonstrate a sense of urgency to get results and improve performance o Sort through complex issues and take appropriate action o Continually raise the bar on your own and others' performance, via a "beat year ago" mentality

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Build and align teams o Use the power of people to solve problems and drive results, and invite input and ideas from everyone o Articulate strategy o Continually build capability, selecting talented people and promptly addressing non-performers o Communicate, communicate, communicate

4 HOW WE WIN: Be the best at providing customers with branded restaurant choice and branded products •

Run great restaurants via o Customer and sales mindset and behaviour o People capability first o High visibility leadership and coaching o CHAMPS execution o Processes and discipline around Profit and Loss ("P&L") and Balanced Scorecard ("BSC")

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Run most efficient integrated Strategic Business Units ("SBUs") o Customer and sales mindset and behaviour o People capability first o High visibility leadership and coaching o STAR audit execution o Processes and discipline around P&L and BSC

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Differentiate the brands in everything we do o Strategic brand analysis

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Brand identity system - identifying what we stand fort

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Drive explosive expansion o Fully penetrate all profitable market segments o Execute expansion and re-imaging plans and deliver on a timely basis o Strengthen unit economics and organization capability o Continuously explore new and innovative business channels

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Lead the way in product innovation o Ensure world class concepts and operational execution o Develop new and innovative product concepts o Constantly provide customers with menu variety to stay relevant

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Convert cash flow into high value o Get out of low return assets o Leverage what we own o Invest in high return opportunities

5 HOW WE WORK TOGETHER: Our leadership principles • •

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Customer Focus - We listen and respond to the voice of the customer Belief in people - We believe in people, trust positive intentions, encourage ideas from everyone and actively develop a workforce that is diverse in style and background Recognition - We find reasons to celebrate the achievements of others, and have fun doing it Coaching and Support - We coach and support each other Accountability - We do what we say, we are accountable Excellence - We take pride in our work and have a passion for excellence Positive Energy - We execute with positive energy and intensity Teamwork - We practice team together, team apart