Amrest Holdings SE Group
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AmRest Holdings SE Group Independent Registered Auditor’s Report on the consolidated financial statements as at and for the year ended 31 December 2009 TRANSLATORS’ EXPLANATORY NOTE The following document is a free translation of the registered auditor’s opinion and report of the above-mentioned Polish Company. In Poland statutory accounts must be prepared and presented in accordance with Polish legislation and in accordance with the accounting principles and practices generally used in Poland. The accompanying translated report has not been reclassified or adjusted in any way to conform to accounting principles generally accepted in countries other than in Poland, but certain terminology current in Anglo-Saxon countries has been adopted to the extent practicable. In the event of any discrepancy in interpreting the terminology, the Polish version is binding. WorldReginfo - 276d3158-7172-4ca5-964c-7dc28d0ed834 Independent registered auditor’s report on the consolidated financial statements To the General Shareholders’ Meeting and the Supervisory Board of AmRest Holdings European Company This report contains 15 consecutively numbered pages and consists of: Page I. General information about the Group 2 II. Information about the audit 4 III. The Group’s results and financial position 5 IV. Discussion of consolidated financial statement components 6 V. The independent registered auditor’s statement 14 VI. Final information and comments 15 WorldReginfo - 276d3158-7172-4ca5-964c-7dc28d0ed834 The AmRest Holdings SE Group Independent registered auditor’s report on the financial statements as at and for the year ended 31 December 2009 I. General information about the Group (a) AmRest Holdings SE (the “Parent Company”) was established in the Netherlands in October 2000 as a joint-stock company. On 19 September 2008, the Commercial Chamber in Amsterdam registered the change in the legal status of the Parent Company to a European Company (Societas Europaea) and of its name to AmRest Holdings SE. On 22 December 2008, the Parent Company was entered in the Register of Businesses maintained by the District Court in Wrocław-Fabryczna, the 6th Business Department of the National Court Register, with the reference number KRS 0000320252. The Court also registered the changes in the Memorandum of Association of the Parent Company relating to the transition of the registered office of AmRest to Poland. The Parent Company’s registered office is currently located at pl. Grunwaldzki 25-27, Wrocław, Poland. (b) On 16 January 2009, the Parent Company was assigned a tax identification number (NIP) 1010002998 for making tax settlements. For statistical purposes, the Company was assigned a REGON number 020891041 on 5 January 2009. (c) As at 31 December 2009, the Parent Company’s registered share capital amounted to EUR 141,863.56 and consisted of 14,186,356 shares of EUR 0.01 par value each. (d) In the audited year, the Group’s operations comprised operating, through its subsidiaries, Kentucky Fried Chicken (“KFC”), “Pizza Hut”, “Burger King” and “Starbucks” restaurants in Poland, the Czech Republic, Hungary, Russia, Serbia and Bulgaria, and Applebee’s restaurants in the USA on the basis of franchise agreements, and proprietary restaurants “Rodeo Drive” and “Freshpoint” in Poland. (e) During the year, the following people were on the Parent Company’s Management Board: Wojciech Mroczyński Board Member Jacek Trybuchowski Board Member As of 12 January 2010, Jacek Trybuchowski resigned as member of the Management Board. On 13 January 2010, the Supervisory Board of the Parent Company passed a resolution appointing Piotr Boliński as a member of the Management Board of AmRest Holdings SE. (f) The Parent Company is an issuer of securities admitted to trading on the Warsaw Stock Exchange and, in accordance with the requirements of the Accounting Act, it has prepared the consolidated financial statements in accordance with the International Financial Reporting Standards (IFRS) as adopted by the European Union. 2 WorldReginfo - 276d3158-7172-4ca5-964c-7dc28d0ed834 The AmRest Holdings SE Group Independent registered auditor’s report on the financial statements as at and for the year ended 31 December 2009 I. General information about the Group (cont.) (g) As at 31 December 2009, the AmRest Holdings SE Group consisted of the following entities: Entity name Nature of equity Consolidation Auditor Type of opinion issued Balance sheet date relationship (% method shareholding) AmRest Holdings SE Parent Company N/A PricewaterhouseCoopers Sp. z o.o. unqualified 31 December 2009 AmRest Sp. z o.o. Subsidiary (100%) Acquisition PricewaterhouseCoopers Sp. z o.o. an opinion had not been issued 31 December 2009 accounting by the date of the opinion on the consolidated financial statements AmRest s.r.o. Subsidiary (100%) Acquisition PricewaterhouseCoopers Audit, s.r.o. an opinion had not been issued 31 December 2009 accounting by the date of the opinion on the consolidated financial statements International Fast Food Polska Sp. z Subsidiary (100%) Acquisition The Company was not obliged to perform - 31 December 2009 o.o. in liquidation accounting an audit. AmRest BK s.r.o. Subsidiary (100%) Acquisition The Company was not obliged to perform - 31 December 2009 accounting an audit. Pizza Hut s.r.o. Subsidiary (100%) Acquisition The Company was not obliged to perform - 31 December 2009 accounting an audit. AmRest Kft Subsidiary (100%) Acquisition PricewaterhouseCoopers Kft. an opinion had not been issued 31 December 2009 accounting by the date of the opinion on the consolidated financial statements AmRest Ukraina t.o.w. Subsidiary (100%) Acquisition The Company was not obliged to perform - 31 December 2009 accounting an audit. AmRest Coffee Subsidiary (82%) Acquisition The Company was not obliged to perform - 31 December 2009 Sp. z .o.o. accounting an audit. 3 WorldReginfo - 276d3158-7172-4ca5-964c-7dc28d0ed834 The AmRest Holdings SE Group Independent registered auditor’s report on the financial statements as at and for the year ended 31 December 2009 I. General information about the Group (cont.) Entity name Nature of equity Consolidation Auditor Type of opinion issued Balance sheet date relationship (% method shareholding) Bécsi út.13. Kft Subsidiary (100%) Acquisition The Company was not obliged to perform - 31 December 2009 accounting an audit. AmRest EOOD Subsidiary (100%) Acquisition TPA Horwath Audit OOD unqualified 31 December 2009 accounting AmRest Coffee s.r.o. Subsidiary (82%) Acquisition The Company was not obliged to perform an opinion had not been issued 31 December 2009 accounting an audit. by the date of the opinion on the consolidated financial statements AmRest Acquisition Subsidiary Inc. Subsidiary (100%) Acquisition The Company was not obliged to perform - 31 December 2009 accounting an audit. OOO AmRest Subsidiary (100%) Acquisition ZAO Marka Ltd. unqualified 31 December 2009 accounting OOO KFC Nord Subsidiary (100%) Acquisition The Company was not obliged to perform - 31 December 2009 accounting an audit. OOO Sistema Bistrogo Pitania Subsidiary (100%) Acquisition The Company was not obliged to perform - 31 December 2009 accounting an audit. AmRest Kávézó Kft Subsidiary (82%) Acquisition The Company was not obliged to perform - 31 December 2009 accounting an audit. AmRest D.O.O. Subsidiary (60%) Acquisition The Company was not obliged to perform - 31 December 2009 accounting an audit. AmRest LLC Subsidiary (100%) Acquisition The Company was not obliged to perform - 27 December 2009 accounting an audit. SCM Sp. z o.o. Subsidiary (51%) Acquisition The Company was not obliged to perform - 31 December 2009 accounting an audit. SCM s.r.o. Associate (40.50%) Equity accounting The Company was not obliged to perform - 31 December 2009 method an audit. 4 WorldReginfo - 276d3158-7172-4ca5-964c-7dc28d0ed834 The AmRest Holdings SE Group Independent registered auditor’s report on the financial statements as at and for the year ended 31 December 2009 II. Information about the audit (a) PricewaterhouseCoopers Sp. z o.o. was appointed auditor to the Group by Resolution No. 1 of the Supervisory Board of AmRest Holdings SE dated 13 January 2010, on the basis of paragraph 12, clause 1d) of the Company’s Memorandum of Association. (b) PricewaterhouseCoopers Sp. z o.o. and the key registered auditor conducting the audit are independent of the Group entities within the meaning of art. 56, clauses 2-4 of the Act on registered auditors and their self-government, registered audit companies and on public supervision dated 7 May 2009 (Journal of Laws No. 77, item 649). (c) The audit was conducted in accordance with the contract dated 20 July 2009, in the period from 23 November 2009 to 29 April 2010. 4 WorldReginfo - 276d3158-7172-4ca5-964c-7dc28d0ed834 The AmRest Holdings SE Group Independent registered auditor’s report on the financial statements as at and for the year ended 31 December 2009 III. The Group’s results and financial position The observations below are based on knowledge obtained during the audit of the consolidated financial statements. The consolidated financial statements do not take account of inflation. The consumer price index (from December to December) amounted to 3.5% in the audited year (3.3% in 2008). AmRest Holdings SE is the Parent Company of the Group, which in the audited year was composed of nineteen subsidiaries (including nineteen subsidiaries covered by consolidation); the data of one associate has been presented in the consolidated financial statements under the equity method. In the year preceding the audited year, the Group consisted of twenty-one subsidiaries (including twenty-one consolidated subsidiaries); the data of four associates was disclosed under the equity accounting method in the consolidated financial statements. The following factors had a significant impact on the Group’s results of operations and profitability for the year as well as on its financial position as at the balance sheet date: As at the end of the audited year, total assets of the Group amounted to PLN 1,151,095 thousand. Total assets increased by PLN 52,719 thousand (i.e.