Pizza Hut

QSR BRANDS BHD (599171-D) A. A1. NOTES TO THE INTERIM FINANCIAL REPORT Basis of Preparation The interim financial report is unaudited and has been prepared in accordance with FRS 134: “Interim Financial Reporting” and paragraph 9.22 of the Bursa Malaysia Securities Berhad (“Bursa Securities”) Listing Requirements and should be read in conjunction with the Group’s audited financial statements for the year ended 31 December 2008. The accounting policies and presentation adopted by the Group in this interim financial report are consistent with those adopted in the annual financial statements for the financial year ended 31 December 2008. A2. Status on Qualification of Audited Financial Statements The audit report of the Group’s preceding year financial statement was not qualified. A3. Seasonality or Cyclicality of Operations The Group’s performance is generally affected by seasonal factors such as school holidays and festive seasons. A4. Unusual Items affecting Assets, Liabilities, Equity, Net Income or Cash flows There was no unusual item affecting assets, liabilities, equity, net income or cash flows during the financial period. A5. Changes in Accounting Estimates There were no changes in estimates of amount reported in prior interim period or financial year that have a material effect in the current financial quarter. A6. Debt and Equity Securities There was no issuance, cancellation, repurchases, resale and repayment of debt and equity securities for the financial period other than the following :(a) The number of warrants outstanding as at 30 June 2009 was 40,911,847. Each warrant entitles the holder of the right to subscribe for a new ordinary share of RM1.00 each in the Company at an exercise price of RM3.01 per share. The warrants will expire on 5 March 2013. (b) During the current period, the Company bought back 2,708,900 of its issued and paid-up shares from the open market at an average price of RM2.82 per share. Total consideration paid for the buybacks