Pershing Square Activist Presentation Deck

Appendix Set forth herein is a table which details our assumptions regarding potential operating improvements. Assumptions: Upside Operating Improvements Transaction / Assumptions McOpCo EBITDA Improvement 275bps FY 2006E Financial Data: McOpCo Revenue McOpCo EBITDA Current EBITDA Margin New Margins New McOpCo EBITDA G & A Savings: Improving to $50k per unit Unit Level Assumption: -50k per unit G&A Allocation Assumptions: McOpCo Brand McDonald's Savings ($ in mm) McOpCo Brand McDonald's -35k per unit G&A Allocation Assumptions: McOpCo Brand McDonald's $15,429 $1,130 7.3% 10.1% 1,554 G & A Savings: Improving to YUM! Levels Unit Level Assumption: Savings ($ in mm) McOpCo Brand McDonald's 55 25.0% 75.0% $125 $375 25.0% 75.0% $250 $750 Segment McOpCo Brand McDonald's Total McOpCo Brand McDonald's Total Pr Forma 2006E EBITDA Less: FY'05E Net Debt Less: Minority Interest (Market Value) Equals: Market Value of Equity PF FY'05E Diluted Shares Outstanding (mm) Estimated Share Price $1,554 4.464 6,018 McOpCo Brand McDonald's Total $1,679 4,839 6,518 Less: FY'05E Net Debt Less: Minority Interest (Market Value) Equals: Market Value of Equity PF FY'05E Diluted Shares Outstanding (mm) Estimated Share Price $1,804 5,214 7,018 Less: FY'05E Net Debt Less: Minority Interest (Market Value) Equals: Market Value of Equity PF FY'05E Diluted Shares Outstanding (mm) Estimated Share Price Estimated EV/'06E EBITDA Multiple 7.0x 13.5x 7.0x 13.5x 7.0x 13.5x Final Revised Proposal.ppt Pro Forma Enterprise Value $10,878 60,263 $71,141 8,065 1,906 $61,171 1,186 $52 $11,753 65,326 $77,078 8,065 2,081 $66,933 1,186 $56 $12,628 70,388 $83,016 8,065 2,256 $72,696 1,186 $61

View entire presentation