Pershing Square Activist Presentation Deck

I. Overview of McDonald's (1) As a result of the Company's improved capital allocation, pre-tax unlevered free cash flow has increased from a five-year low of $2.0 billion in 2002 to $3.5 billion in 2004. EBITDA - CapEx Historical Pre-Tax Unlevered Free Cash Flow(1) Performance ($ in millions) $4,000 $3,000 $2,000 $1,000 $0 $2,199 Historical Financial Performance (Cont'd) 15.4% 2000 $2,134 14.4% 2001 EBITDA - CapEx $1,994 12.9% 2002 $3,205 7 18.7% Denotes Adjusted EBITDA - CapEx. Adjusted EBITDA is adjusted for certain non-recurring and non-cash expenses. 2003 Margin % $3,483 18.3% 2004 26% 22% 18% 14% 10% Margin (%)

View entire presentation