McDonald Japan : Overview of Consolidated Financial Results for the Fiscal Year Ended December 31, 2022, and 2023 Earnings Forecast

February 8, 2023

To whom it may concern,

McDonald's Holdings Company (Japan), Ltd. Tamotsu Hiiro Representative Director, President and CEO

(Code No.: 2702 TSE Standard)

Inquiries: McDonald's Company (Japan), Ltd. Vice President, Chief Financial Officer Shuko Yoshida TEL: [phone]

Consolidated Financial Results for the Fiscal Year Ended December 31, 2022, and 2023

Earnings Forecast

McDonald's Holdings Company (Japan), Ltd. hereby announces its consolidated full-year results for the year ended December 31, 2022 (January 1, 2022 to December 31, 2022).

Highlights

• Achieved record annual All Store Sales of 717.5 billion yen
• Operating Income, Ordinary Income, and Net Income decreased due to the impact of rapid changes in the external environment
• Medium-termplan and various strategies and investments planned in FY 2023 to achieve steady growth

1. Consolidated Financial Results:

(In Millions of Yen)

					2022 Full-year
			Actual	Last Year's	vs. Last	vs. Last Year
			Results	Actual	Year
					Result
	All Store Sales*	717,589		652,047	+65,541	+10.1%
	Revenue	352,300		317,695	+34,605	+10.9%
	Consolidated Operating Income		33,807		34,518		-2.1%
			-710
	Consolidated Ordinary Income		32,813		33,618	-805	-2.4%
	Consolidated Net Income Attributable to		19,937		23,945	-4,007	-16.7%
	Owners of Parent
*All Store Sales: combined sales of company-operated and franchised restaurants
					2022 Full-year
					vs. Last Year
	Same-store Sales			+8.9%
	Same-store Guest Count			+3.2%
	Same-store Average Check			+5.5%

Amid a major shift in customer behavior and needs due to the COVID-19 pandemic, we have been striving to fulfill our social role to provide delicious, hot meals to our customers while working to prevent the spread of the virus, focusing on our purpose of Feeding and Fostering Communities.

All Store Sales reached 717.5 billion yen, an increase of 65.5 billion yen, +10.1% from the previous

year, setting a new record. On the other hand, due to the impact of changes in the external environment, such as soaring raw material prices, rising labor, distribution, and energy costs, and significant exchange rate fluctuations, Operating Income decreased 0.7 billion yen, or 2.1%, to 33.8 billion yen, Ordinary Income decreased 0.8 billion yen, or 2.4%, to 32.8 billion yen, and Net Income Attributable to Owners of the Parent decreased 4.0 billion yen, or 16.7%, to 19.9 billion yen, also due to temporary large impact of the accounting treatment of deferred tax assets in the previous fiscal year.

2. 2023 Consolidated Earnings Forecast

In 2023, while we thoroughly review costs, we will implement our three-pronged growth strategy in our Medium-term Plan announced in February 2022 and invest for the future, striving to enhance customer satisfaction through improved customer convenience and store experience.

We aim to outperform the previous year's results and achieve All Store Sales of 770 billion yen, Revenue of 374 billion yen, Consolidated Operating Income of 35 billion yen, and Consolidated Net Income of 33.5 billion yen.

		(In Millions of Yen)
	Full Year 2023
	Earnings Forecast	vs. Last Year
All Store Sales	770,000	+7.3%
Revenue
374,000	+6.2%
Consolidated Operating Income
35,000	+3.5%
Consolidated Ordinary Income
33,500	+2.1%
Consolidated Net Income Attributable to	21,000	+5.3%
Owners of Parent

(Note) The forecast above is based on the information currently available. A number of factors could cause actual results to differ materially

from expectations.

Medium-Term Plan Outline

• The three growth pillars
• • Brand: fulfill our social role based on Our Purpose
  • Menu & Value: offer menu items to a wider range of customers and dining occasions
  • Acceleration of investments in restaurant, digital, and people: create restaurant experiences that exceed customer expectations
  • • Open approximately 100 locations each year and reach a store count of at least 3,000 restaurants
    • Further evolve Experience of the Future by combining digital and people

② Financial Targets

All Store Sales	+100 billion yen
	Average Annual Growth
	Rate of around 5%.
Operating Income	Average Annual Growth
	Rate of 3 to 5%.
	Operating Income Margin
	of 10% or more
ROE	10% or more

EOD

*This document is distributed to Kabuto Club, Tokyo Chamber of Commerce Press Club, and Eating Out Industry Press Club.