GENDER PAY GAP REPORT 2018WHAT IS THE GENDER PAY GAP?

The gender pay gap measures the difference in the average pay of men and women across an enreorganisaon, regardless of the role or the nature of their work, and can be the result of many factors,including the number of men and women in each role or the total number of men and women in theorganisaon.

WHAT IS OUR APPROACH/POLICY ON GENDER PAY?

At Pizza Hut Restaurants we are an equal opportunies employer and believe pay, bonus and posionshould be a reflecon of performance over any other factor, and all our employee pay reviews areconducted against that criteria, with our restaurant team member pay also a reflecon of age.

WHERE DO WE STAND - WHAT ARE OUR NUMBERS?

M FOVERALL £7.49M £7.83 F £7.217.9% GAP

MEAN

M FOVERALL £7.35M £7.46 F £7.055.5% GAP

MEDIAN

M FOVERALL £1,371M £1,436 F £1,27211.5% GAP

AVERAGE BONUS

M FOVERALL £751M £745 F £817-9.7% GAP

BONUS MEDIAN

25 +

OVERALL< 1818 - 2121 - 24

M F

M F

44% 56%36% 64%43% 57%43% 57%

50% 50%

COUNT % 50% 50%

GENDER PAY GAP AT SENIOR MANAGEMENT LEVEL

At our senior management levels we have an even 50/50 split of roles by gender, which reflects our policy of performance related pay rates through a gender pay gap favourable to female roles.

We also consciously consider our gender balance when reviewing the composion of our senior teamsand management roles so we have the right talent in the right places and an even balance of genderacross our business.

LOWER BANDLOWER MIDDLE BANDUPPER MIDDLE BANDUPPER BAND

M F39.2% 60.8%39.6% 60.4%

55.4% 44.6%50.4% 49.6%

EXPLAINING THE GENDER GAP

The majority of our employees are restaurant based and our restaurant pay structure belowmanagement level is based on age and the naonal minimum wage, not gender. The gender pay gapis a result of variaons in the numbers of male and female employees in each pay band (as illustratedbelow).

The majority of our employees in the lower pay bands are in our younger age brackets, witha signifia significantly higher level of female employees. Our upper middle and upper pay bands are very closeto a 50/50 gender split, with a slight leaning to more male employees. This has caused the total genderpay gap to exist. We are, however, proud that in several posions and levels we have more female employees in role than male.

SENIOR LEADERSHIP TEAM MEAN PAY GAP -2.5% SENIOR LEADERSHIP TEAM MEDIAN PAY GAP -8.4%

I, Kathryn Ausn, HR & Markeng Director, confirm that the informaon in this statement is accurate and the figures set out above have been calculated using the standard methodologies used in the Gender Pay Gap Regulaons 2017.

REFLECTIONS

We welcome the gender pay gap report and the focus it is ensuring on gender equality. We work hard to provide equal opportunies for all our employees and have introduced talent development training to provide emoonal and behavioural development to all our employees as well as skills led training.

Our Best of Me, Best of Us culture principles ensure our focus is on encouraging every individual to achieve their full potenal and to contribute to the success of their team.

The dThe data our report has provided will ensure we connue to focus on our recruitment pracces so we develop a broad, strong and balanced external talent pool which can benefit from our training and equal opportunity approach to promoon and career progression so we connue to strengthen our employee profile.

EXPLAINING BONUS

Bonus is calculated on performance with no gender consideraon taken into account.Employees become eligible for bonus once they reach Restaurant Management level.Total % receiving bonus: Male 4.4%, Female 2.9%.

A significant amount of bonus pay is generated at Restaurant General Manager (RGM) level.

61% of our RGMs are Male. 39% of our 39% of our RGMs are Female.

Our appointment of a Restaurant General Manager is a reflecon of performance, and the calculaonof bonus is based 100% on the profit performance of each restaurant against pre-defined targets.

Over the last 12 months, more restaurants with a Male Restaurant General Manager have achievedtheir profit target and therefore earned bonus than those with a Female Restaurant General Manager.Above Restaurant General Manager level, bonus is calculated against a combinaon of individualperformance against pre-defined targets and the holisc profit performance of the business.

M F61% 39%COUNT %