McDonald Japan : Revision of Consolidated Financial Forecast for 2022

November 14, 2022

To whom it may concern,

McDonald's Holdings Company (Japan), Ltd.

Tamotsu Hiiro

Representative Director, President and CEO

(Code No.: 2702 TSE Standard)

Inquiries: Shuko Yoshida

Vice President, Chief Financial Officer

McDonald's Company (Japan), Ltd.

TEL: [phone]

Revision of Consolidated Financial Forecast for 2022

McDonald's Holdings (Japan), Ltd. announced today that at a Board of Directors meeting held on November 14, 2022, it was decided to revise the earnings forecast for the full fiscal year ending December 2022 (from January 1, 2022 to December 31, 2022) as follows, based on the recent performance trend and other factors.

1. Revision of Consolidated Financial Forecast (From January 1, 2022 - December 31, 2022)

				Income
				attributable to
	Revenue	Operating	Ordinary	owners of	EPS
	income	income	parent
Previous Forecast (A)	(million yen)	(million yen)	(million yen)	(million yen)	(yen) (sen)
333,000	35,000	34,000	21,500	161.70
Revised Forecast (B)	350,000	33,500	32,500	20,000	150.42
Variance in Amount (B-	17,000	- 1,500	- 1,500	- 1,500
A)
Variance in Percentage	+5.1	- 4.3	- 4.4	- 7.0
(%)
(Reference) Prior Year
Results	317,695	34,518	33,618	23,945	180.10
(FY 2021)

2. Reasons of Revision

We have been listening to customers' feedback to achieve sustainable business growth and earnings forecast announced in February this year. Also, we have been focusing on "Brand," "Menu and Value," "Restaurant and Digital," and "People" to enhance customer convenience and restaurant experience.

Synergistic effects from these initiatives resulted in consolidated net sales of 259.9 billion yen, an increase of 23.3 billion yen or 9.9% compared to the same period of the previous year, as announced today in the Summary of Financial Results for the Third Quarter of the Fiscal Year Ending December 31, 2022. On the

other hand, operating income was 27.1 billion yen and ordinary income was 26.5 billion yen, or down 1.4 billion yen and 1.2 billion yen, respectively, compared to the same period of the previous year due to the impact from changes in the business environment including the sharp appreciation of the yen, soaring material prices and energy costs.

In consideration of the above and the future business environment, the company has revised its consolidated full-year forecast for fiscal 2022.

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