Phill starts with 1 pizza, cutting it in half. This means he now has 1*2=<<1*2=2>>2 slices of pizza.
He cuts each of these 2 slices in half, meaning he now has 2*2= <<2*2=4>>4 slices of pizza.
He then cuts these in half again, meaning he now has 4*2= <<4*2=8>>8 slices of pizza.
Phill hands out 2 slices to 2 of his friends, meaning he gave out 2*2= <<2*2=4>>4 slices
He hands out 1 slice to 3 others, so the total amount of slices handed out are 3+4=7 slices.
Since Phill started with 8 slices, this means he has 8-7= <<8-7=1>>1 slice remaining.
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