McDonalds Europe SAFEFOODERA Ljubljana, Slovenia 8th February 2007 Dr. Bizhan pourkomailian

Company Overview Over 31,000 Restaurants Globally (over 6,300 in Europe) Over 31,000 Restaurants Globally (over 6,300 in Europe) In 119 countries Globally (41 in Europe) In 119 countries Globally (41 in Europe) Work with Farms, Processors, Logistics and Restaurants Work with Farms, Processors, Logistics and Restaurants But own only a percentage of Restaurants But own only a percentage of Restaurants Franchise System in Europe 63% Franchise System in Europe 63% System employees: 1.6 million (over 200,000 in Europe) System employees: 1.6 million (over 200,000 in Europe) Customers Per Day: 54 million Globally Customers Per Day: 54 million Globally

Company Strategy QSC-V (Quality, Service, Cleanliness & Value) QSC-V (Quality, Service, Cleanliness & Value) Th be the best and preferred quick service restaurant Th be the best and preferred quick service restaurant Quality focus not quantity Quality focus not quantity Moving from fast food to good food fast Moving from fast food to good food fast Environmental focus Environmental focus

Company Focus People – to be the best employer People – to be the best employer Product – to provide gold standard Product – to provide gold standard Place – the customers preferred place to eat Place – the customers preferred place to eat Price – affordable for all Price – affordable for all Promotion – to share good works Promotion – to share good works

The European McDonalds Supply Chain

The Supply Chain

McDonalds Europe Supply Chain Strategic Sourcing Strategic Sourcing The 3 legged stool: Corporation – Franchisees – Suppliers The 3 legged stool: Corporation – Franchisees – Suppliers Exclusive, certified facilities Exclusive, certified facilities Handshake agreements, Trust Handshake agreements, Trust Long term win-win partnership, risk sharing Long term win-win partnership, risk sharing Rigorous product and service specifications Rigorous product and service specifications Strong focus on quality, product specification and environmental audits Strong focus on quality, product specification and environmental audits Assured Supply Assured Supply