To:

Business Editor

30th July 2015
For immediate release

The following announcement was issued today to a Regulatory Information Service approvedby the Financial Conduct Authority in the United Kingdom.
MANDARIN ORIENTAL INTERNATIONAL LIMITEDHALF-YEARLY RESULTS FOR THE SIX MONTHS ENDED 30TH JUNE 2015
Highlights
 Challenging conditions in a number of key markets
 Acquisition of the Hotel Ritz, Madrid in a joint venture Hotel opens in Milan, and a new management contract for Beijing US$316 million rights issue fully subscribed“While challenging conditions in some of Mandarin Oriental’s key markets are expected toinfluence full-year performance, the Group should continue to benefit from its strong overall
competitive and financial position.”
Ben Keswick
Chairman
Results

Combined total revenue of hotels under management(1)Underlying EBITDA (Earnings before interest, tax,
depreciation and amortization)(2)EBITDA(2)Underlying profit before tax
Underlying profit attributable to shareholders(3)Profit attributable to shareholders
Underlying earnings per share(3)(4)
Earnings per share(4)Interim dividend per share
Net asset value per share(4)Adjusted net asset value per share(4)(5)
Net debt/shareholders’ funds
Net debt/adjusted shareholders’ funds(5)(unaudited)
Six months ended 30th June
2015
2014
US$m
US$m
671.4
640.9
82.2
81.2
40.9
33.4
32.4
US¢
2.92
2.84
2.00
US$
0.99
2.74
13%
5%

101.5
101.5
56.3
45.6
45.6
US¢
4.37
4.37
2.00
US$
0.95
2.93
51%
17%

Change
%
–5
–19
–20
–27
–27
–29
%
–33
–35
%
+4
–6

(1) Combined revenue includes turnover of the Group’s subsidiary hotels in addition to 100% of revenue from associate, joint
venture and managed hotels.
(2) EBITDA of subsidiaries plus the Group’s share of EBITDA of associates and joint venture.
(3) The Group uses ‘underlying profit’ in its internal financial reporting to distinguish between ongoing business performance andnon-trading items, as more fully described in note 7 to the condensed financial statements. Management considers this to be a
key measure which provides additional information to enhance understanding of the Group’s underlying business performance.
(4) The comparative figures in 2014 have been adjusted to reflect the effect of the rights issue completed in April 2015.
(5) The adjusted net asset value per share and net debt/adjusted shareholders’ funds have been adjusted to include the market valueof the Group’s freehold and leasehold interests which are carried in the consolidated balance sheet at amortized cost.
The interim dividend of US¢2.00 per share will be payable on 14th October 2015 to shareholders on the register of members at theclose of business on 21st August 2015.

- more -Page 2
MANDARIN ORIENTAL INTERNATIONAL LIMITEDHALF-YEARLY RESULTS FOR THE SIX MONTHS ENDED 30TH JUNE 2015

OVERVIEW
Against a background of challenging conditions, Mandarin Oriental continued to develop its
global hotel portfolio which now consists of 28 properties in operation, with a further 17
under development.

This follows the acquisition of a joint venture interest in the Hotel Ritz,

Madrid, the opening of Mandarin Oriental, Milan, and the announcement of a new
management contract for a second hotel in Beijing.

During the period the Group raised

US$316 million by way of a rights issue to fund a reduction in debt and its investment in
Spain.

PERFORMANCEThe Group’s results for the period were affected by softer demand in Hong Kong and Paris,
together with the impact of renovations at a number of properties. Underlying earnings
before interest, tax, depreciation and amortization for the first six months of 2015 were
US$82 million.

This compares with US$102 million in the first half of 2014, which

benefited from US$9 million of branding fees from Residences at Mandarin Oriental in
Bodrum.

Underlying profit for the period was US$33 million, compared to US$46 million in 2014, andunderlying earnings per share were US¢2.92 compared with US¢4.37 in 2014.

Profitattributable to shareholders was US$32 million, after deducting US$1 million of acquisitiontransaction costs, compared to US$46 million in 2014.

An unchanged interim dividend of US¢2.00 per share has been declared.

GROUP REVIEWIn Hong Kong, a decline in demand led to lower occupancy and average rates at the Group’s
two wholly-owned hotels.

Elsewhere in Asia, the Group’s hotels in Tokyo and Bangkok

benefited from increased visitor arrivals, while softer citywide corporate demand led to
weaker performances in Singapore, and in Kuala Lumpur where the hotel is also undergoing arenovation. In Europe, there was an improved performance in London, but challenging
conditions in Paris, a renovation in Munich and the strengthening of the US dollar led to a
- more -Page 3lower contribution from the region. In The Americas, the Group’s hotels, with the exceptionof New York which was being refurbished, benefited from positive trading conditions andproduced an increase in revenue per available room.

BUSINESS DEVELOPMENTS
In May, the Group acquired the Hotel Ritz, Madrid for €130 million (US$148 million) in a
50/50 joint venture with The Olayan Group. The hotel is to undergo a comprehensive
renovation in 2017, currently estimated to cost some €90 million (US$103 million).
Mandarin Oriental’s investment in the project, including the acquisition, renovation andtransaction expenses, is estimated to be €111 million (US$126 million).

Mandarin Oriental

is now managing the hotel under a long-term management agreement.

The Group has announced one new management contract for a 74-room hotel in the heart ofBeijing, China, scheduled to open in 2017.

The hotel, which will be the Group’s second in

the city, will occupy the top two floors of Hongkong Land’s new luxury retail centre locatedin the Wangfujing district.

The Group is to undertake a major £85 million (US$130 million)

refurbishment of Mandarin Oriental Hyde Park, London, which is scheduled to commence in2016 and last 18 months.

During the period, the Group ceased to manage its San Francisco

hotel.

Mandarin Oriental, Milan has just opened, and will be followed by a new resort in Marrakech
in September.

The opening of Mandarin Oriental, Doha is scheduled during the second halfof 2016.

Mandarin Oriental currently operates or has under development 45 hotels representing close
to 11,000 rooms in 24 countries, with 21 hotels in Asia, nine in The Americas and 15 inEurope, Middle East and North Africa.

In addition, the Group operates or has underdevelopment 15 Residences at Mandarin Oriental connected to its properties.

CORPORATE DEVELOPMENTSIn April 2015, the Group raised US$316 million in a fully subscribed 1 for 4 rights issue.
The proceeds of the issue were used to pay down debt in advance of the proposed
refurbishment of Mandarin Oriental Hyde Park, London and to fund the acquisition of a 50%
interest in the Hotel Ritz, Madrid.
- more -Page 4PEOPLE
Giles White will be retiring as a Director on 31st July 2015 and we would like to thank him
for his significant contribution to the Board.

He will be succeeded by Jeremy Parr, formerly

a senior partner of the international law firm Linklaters, who joins the Board on 1st August
2015.

OUTLOOK
While challenging conditions in some of Mandarin Oriental’s key markets are expected toinfluence full-year performance, the Group should continue to benefit from its strong overall
competitive and financial position.

Ben Keswick
Chairman- more -Page 5Mandarin Oriental International Limited
Consolidated Profit and Loss Account(unaudited)
Six months ended 30th June

Underlying
US$m

Total
US$m

295.2
(180.4)114.8(18.8)(53.4)
42.6

341.0(205.5)135.5(24.0)(54.3)
57.2

-

341.0
(205.5)135.5(24.0)(54.3)
57.2

679.9(410.0)269.9(44.7)(104.4)
120.8

-

679.9
(410.0)269.9(44.7)(104.4)
120.8

-

(8.0)
1.1

(8.9)
1.3

-

(8.9)
1.3

(19.9)
2.6-(19.9)
2.6

(6.9)

-

(6.9)

(7.6)

-

(7.6)

(17.3)-(17.3)

4.7
40.9
(7.2)
33.7

(0.5)
(1.0)
(1.0)

4.2
39.9
(7.2)
32.7

6.7
56.3
(10.6)
45.7

-

6.7
56.3
(10.6)
45.7

12.3
115.8
(19.0)
96.8

-

12.3
115.8
(19.0)
96.8

33.4
0.3
33.7

(1.0)
(1.0)

32.4
0.3
32.7

45.6
0.1
45.7

-

45.6
0.1
45.7

97.0
(0.2)
96.8

-

97.0
(0.2)
96.8

US¢

US¢

US¢

US¢

US¢

US¢

2.92
2.91

2.84
2.82

4.37
4.35

4.37
4.35

9.29
9.25

9.29
9.25

Underlying
US$m

Total
US$m

295.2
(180.4)114.8(18.8)(52.9)
43.1

(0.5)
(0.5)

Financing charges
Interest income

(8.0)
1.1

Net financing charges
Share of results of associates
and joint venture (note 4)
Profit before tax
Tax (note 5)
Profit after tax
Attributable to:Shareholders of the Company
Non-controlling interests

Revenue (note 2)
Cost of sales
Gross profit
Selling and distribution costs
Administration expenses
Operating profit (note 3)

Earnings per share (note 6)- basic- diluted

Year ended 31st December
2014
Nontrading
Underlying
items
Total
US$m
US$m
US$m

2014
Nontrading
items
US$m

2015
Nontrading
items
US$m

- more -Page 6

Mandarin Oriental International Limited
Consolidated Statement of Comprehensive Income(unaudited)
Six months ended
30th June
2014
2015
US$m
US$m

Year ended
31st
December
2014
US$m

32.7

45.7

96.8

-

-

(5.6)
0.9

-

-

(4.7)

(10.4)
(0.6)
0.1

0.9
(0.2)
3.3
(0.6)

(57.0)
(0.1)
4.0
(0.7)

(4.4)

1.6

(4.0)

(15.3)

5.0(57.8)

Other comprehensive (expense)/income for theperiod, net of tax(15.3)

5.0(62.5)

Total comprehensive income for the period

17.4

50.7

34.3

Attributable to:Shareholders of the Company
Non-controlling interests

16.8
0.6

50.6
0.1

35.0
(0.7)

17.4

50.7

34.3

Profit for the period
Other comprehensive (expense)/income
Items that will not be reclassified to profit or loss:
Remeasurements of defined benefit plans
Tax on items that will not be reclassified
Items that may be reclassified subsequently to
profit or loss:
Net exchange translation differences- net (loss)/gain arising during the period
Fair value losses on other investments
Fair value (losses)/gains on cash flow hedges
Tax relating to items that may be reclassified
Share of other comprehensive (expense)/incomeof associates and joint venture- more -Page 7

Mandarin Oriental International Limited
Consolidated Balance Sheet(unaudited)
At 30th June
2014
2015
US$m
US$m

At 31stDecember2014
US$m

Net assets
Intangible assets
Tangible assets
Associates and joint venture (note 8)
Other investments
Loans receivable
Pension assets
Deferred tax assets

44.5
1,279.8
170.2
11.3
6.1
2.2

45.0
1,431.6
113.8
10.1
13.2
2.5

45.6
1,315.1
101.6
10.5
7.3
2.2

Non-current assets

1,514.1

1,616.2

1,482.3

Stocks
Debtors and prepayments (note 9)
Current tax assets
Cash at bank

5.7
91.4
1.3
282.1

6.4
96.1
1.0
296.7

5.9
94.5
1.3
324.6

Current assets

380.5

400.2

426.3

Creditors and accruals
Current borrowings
Current tax liabilities(124.6)(2.3)(12.2)(131.7)(416.7)(14.2)(144.6)(217.0)(9.6)

Current liabilities(139.1)(562.6)(371.2)

Net current assets/(liabilities)
Long-term borrowings
Deferred tax liabilities
Pension liabilities
Other non-current liabilities

241.4(443.5)(62.9)(3.6)(162.4)(387.3)(65.9)
(0.7)
(3.4)

55.1
(510.7)(62.3)(3.0)

1,245.5

996.5

961.4

Total equity
Share capital (note 10)
Share premium
Revenue and other reserves

62.8
492.0
685.1

50.2
187.2
753.3

50.2
188.2
718.0

Shareholders’ funds
Non-controlling interests

1,239.9
5.6

990.7
5.8

956.4
5.0

1,245.5

996.5

961.4

- more -Page 8Mandarin Oriental International Limited
Consolidated Statement of Changes in Equity
Attributabletoshareholders
Exchangeof thereserves
Company
US$m
US$m

Attributable
to noncontrollinginterests
US$m

Total
equityUS$m

SharecapitalUS$m

Sharepremium
US$m

Capitalreserves
US$m

Revenue
reserves
US$m

Hedging
reserves
US$m

Six months ended 30th June 2015 (unaudited)
At 1st January 2015
Total comprehensive income
Dividends paid by the Company
Issue of shares
Employee share option schemes
Transfer
At 30th June 2015

50.2
12.6
62.8

188.2
303.2
0.6
492.0

283.1
1.1
(0.6)
283.6

495.6
32.4
(50.2)
477.8

(2.7)
(0.5)
(3.2)

(58.0)(15.1)(73.1)

956.4
16.8(50.2)
315.8
1.1
1,239.9

5.0
0.6
5.6

961.4
17.4
(50.2)
315.8
1.1
1,245.5

Six months ended 30th June 2014 (unaudited)
At 1st January 2014
Total comprehensive income
Dividends paid by the Company
Issue of shares
Employee share option schemes
Transfer
At 30th June 2014

50.2
50.2

186.6
0.6
187.2

282.1
1.2
(0.6)
282.7

473.6
45.4
(50.1)
468.9

(6.0)
2.7
(3.3)

2.5
2.5
5.0

989.0
50.6
(50.1)
1.2
990.7

5.7
0.1
5.8

994.7
50.7
(50.1)
1.2
996.5(Consolidated Statement of Changes in Equity continued on page 9)- more -Page 9Mandarin Oriental International Limited
Consolidated Statement of Changes in Equity (continued)

Year ended 31st December 2014
At 1st January 2014
Total comprehensive income
Dividends paid by the Company
Issue of shares
Employee share option schemes
Transfer
At 31st December 2014

SharecapitalUS$m

Sharepremium
US$m

Capitalreserves
US$m

Revenue
reserves
US$m

Hedging
reserves
US$m

50.2
50.2

186.6
1.6
188.2

282.1
2.6
(1.6)
283.1

473.6
92.2
(70.2)
495.6

(6.0)
3.3
(2.7)

Attributabletoshareholders
Exchangeof thereserves
Company
US$m
US$m

2.5
(60.5)(58.0)

989.0
35.0(70.2)
2.6
956.4

Attributable
to noncontrollinginterests
US$m

Total
equity
US$m

5.7
(0.7)
5.0

994.7
34.3
(70.2)
2.6
961.4

Total comprehensive income for the six months ended 30th June 2015 included in revenue reserves comprises profit attributable to shareholders of
the Company of US$32.4 million (2014: US$45.6 million). There was no net fair value loss on other investments in 2015 (2014: US$0.2 million).
Total comprehensive income for the year ended 31st December 2014 included in revenue reserves comprises profit attributable to shareholders of theCompany of US$97.0 million and net fair value loss on other investments of US$0.1 million.

- more -Page 10

Mandarin Oriental International Limited
Consolidated Cash Flow Statement(unaudited)
Six months ended
30th June
2014
2015
US$m
US$m

Year ended
31st
December
2014
US$m

Dividends and interest from associates

42.6
25.0
1.2
1.4
(17.6)
1.1
(6.9)
(4.6)
42.2
4.0

57.2
28.0
1.3
0.1
(14.8)
1.3(12.7)
(8.5)
51.9
5.3

120.8
62.4
2.6
1.5
2.2
2.6
(24.4)(21.4)
146.3
13.2

Cash flows from operating activities

46.2

57.2

159.5

Investing activities
Purchase of tangible assets
Purchase of intangible assets
Payment on Munich expansion (note 9)
Acquisition of Hotel Ritz, Madrid (note 8)
Purchase of other investments
Repayment of loans to associates
Sale of tangible assets(14.1)(0.6)(72.9)(0.7)-(14.6)(1.0)(16.9)(1.1)-(29.4)(2.9)(16.9)
(1.0)
4.3
0.3

Cash flows from investing activities(88.3)(33.6)(45.6)

Financing activities
Issue of shares (note 10)
Drawdown of borrowings
Repayment of borrowings
Dividends paid by the Company (note 11)315.8(261.2)(50.2)

142.3(135.9)(50.1)

512.5(540.8)(70.2)Cash flows from financing activities
Net (decrease)/increase in cash and cash equivalents
Cash and cash equivalents at beginning of period
Effect of exchange rate changes
Cash and cash equivalents at end of period

4.4(37.7)
324.3
(5.3)
281.3

(43.7)(20.1)
315.7
0.8
296.4

(98.5)
15.4
315.7
(6.8)
324.3

Operating activities
Operating profit
Depreciation
Amortization of intangible assets
Other non-cash items
Movements in working capitalInterest received
Interest and other financing charges paid
Tax paid- more -Page 11

Mandarin Oriental International Limited
Notes to Condensed Financial Statements
1. ACCOUNTING POLICIES AND BASIS OF PREPARATIONThe condensed financial statements have been prepared in accordance with IAS 34 ‘Interim
Financial Reporting’. The condensed financial statements have been prepared on a going
concern basis. The condensed financial statements have not been audited or reviewed by
the Group’s auditor pursuant to the UK Auditing Practices Board guidance on the review ofinterim financial information.
The following amendments which are effective in the current accounting period andrelevant to the Group’s operations are adopted in 2015:
Amendments to IAS 19
Annual Improvements to IFRSs

Defined Benefit Plans: Employee Contributions
2010 – 2012 Cycle
2011 – 2013 Cycle

Amendments to IAS 19 ‘Employee Benefits’ clarify the accounting requirements forcontributions from employees or third parties to defined benefit plans. The objective of theamendments is to simplify the accounting for contributions that are independent of thenumber of years of employee service, for example, employee contributions that arecalculated according to a fixed percentage of salary.
Annual Improvements to IFRSs 2010 – 2012 Cycle and 2011 – 2013 Cycle comprise anumber of non-urgent but necessary amendments to IFRSs. The amendments which are
relevant to the Group’s operations include the followings:
Amendment to IFRS 2 ‘Share-based Payment’ clarifies the definition of a ‘vesting
condition’ and separately defines ‘performance condition’ and ‘service condition’.
Amendment to IFRS 3 ‘Business Combinations’ clarifies that an obligation to pay
contingent consideration which meets the definition of a financial instrument is classified
as a financial liability or as equity, on the basis of the definitions in IAS 32 ‘Financial
Instruments: Presentation’. The standard is further amended to clarify that all non-equity
contingent consideration, both financial and non-financial, is measured at fair value at eachreporting date, with changes in fair value recognized in profit and loss.
Amendment to IFRS 8 ‘Operating Segments’ requires disclosure of the judgements madeby management in aggregating operating segments. This includes a description of thesegments which have been aggregated and the economic indicators which have beenassessed in determining that the aggregated segments share similar economic
characteristics.
Amendment to IAS 24 ‘Related Party Disclosures’ includes, as a related party, an entitythat provides key management personnel services to the reporting entity or to the parent of
the reporting entity (‘the management entity’). The reporting entity is not required todisclose the compensation paid by the management entity to the management entity’s
employees or directors, but it is required to disclose the amounts charged to the reporting
entity by the management entity for services provided.
- more -Page 12
1. ACCOUNTING POLICIES AND BASIS OF PREPARATION (CONTINUED)
Amendment to IFRS 3 ‘Business Combinations’ clarifies that IFRS 3 does not apply to theaccounting for the formation of any joint arrangement under IFRS 11. The amendment also
clarifies that the scope exemption only applies in the financial statements of the joint
arrangement itself.
Amendment to IFRS 13 ‘Fair Value Measurement’ clarifies that the portfolio exception in
IFRS 13, which allows an entity to measure the fair value of a group of financial assets andfinancial liabilities on a net basis, applies to all contracts within the scope of IAS 39 or
IFRS 9.
There have been no changes to the accounting policies described in the 2014 annual
financial statements upon the adoption of the above amendments to existing standards. The
adoption of these amendments do not have any significant impact on the results or financial
position of the Group.
The Group has not early adopted any standard, interpretation or amendment that has been
issued but is not yet effective.
2. REVENUE
Six months ended 30th June
2014
2015
US$m
US$m
By geographical area:
Hong Kong
Other Asia
EuropeThe Americas

114.7
48.3
97.6
34.6

125.4
62.4
121.6
31.6

295.2

341.0

3. EBITDA FROM SUBSIDIARIES (EARNINGS BEFORE INTEREST, TAX,
DEPRECIATION AND AMORTIZATION)
Six months ended 30th June
2014
2015
US$m
US$m
By geographical area:
Hong Kong
Other Asia
EuropeThe Americas

35.0
13.1
15.2
6.0

44.5
11.3
29.5
1.2

Underlying EBITDA from subsidiaries
Non-trading item
- Acquisition-related costs (note 7)

69.3

86.5

(0.5)

-

EBITDA from subsidiaries
Less depreciation and amortization

68.8(26.2)

86.5(29.3)

Operating profit

42.6

57.2

- more -Page 13
4. SHARE OF RESULTS OF ASSOCIATES AND JOINT VENTURE
Depreciation
andEBITDA amortization
US$m
US$m

OperatingprofitUS$m

Net
financingcharges
US$m

Tax
US$m

Net
profit/(loss)
US$m

Six months ended 30th June 2015
By geographical area:
Other Asia
10.4
(3.8)
Europe0.4
The Americas
2.1
(1.3)

6.6
0.4
0.8

(0.7)
(1.0)

(1.3)
(0.1)
-

4.6
0.3
(0.2)

Non-trading item
- Acquisition-related
costs (note 7)

12.9

(5.1)

7.8

(1.7)

(1.4)

4.7

(0.5)

-

(0.5)

-

-

(0.5)

12.4

(5.1)

7.3

(1.7)

(1.4)

4.2

(4.4)
(1.5)

8.2
0.9

(0.7)
(1.0)

(0.7)
-

6.8
(0.1)

15.0

(5.9)

9.1

(1.7)

(0.7)

6.7

-

-

-

-

-

-

15.0

(5.9)

9.1

(1.7)

(0.7)

6.7

Six months ended 30th June 2014
By geographical area:
Other Asia
12.6
EuropeThe Americas
2.4
Non-trading item
- Acquisition-related
costs (note 7)- more -Page 14
5. TAX
Six months ended 30th June
2014
2015
US$m
US$m
Tax charged to profit and loss is analyzed as follows:
Current tax
Deferred tax

By geographical area:
Hong Kong
Other Asia
EuropeThe Americas

7.4
(0.2)

10.5
0.1

7.2

10.6

4.2
0.5
2.6
(0.1)

6.1
0.8
3.7
-

7.2

10.6

Tax relating to components of other comprehensive income or expense is analyzed asfollows:
Cash flow hedges

0.1

(0.6)

Tax on profits has been calculated at rates of taxation prevailing in the territories in which
the Group operates.
Share of tax charge of associates and joint venture of US$1.4 million (2014:
US$0.7 million) is included in share of results of associates and joint venture (note 4).

- more -Page 15
6. EARNINGS PER SHARE
Basic earnings per share are calculated on the profit attributable to shareholders of
US$32.4 million (2014: US$45.6 million) and on the weighted average number of
1,142.4 million (2014: 1,044.4 million after adjusting for the rights issue completed in
April 2015) shares in issue during the period.
Diluted earnings per share are calculated on profit attributable to shareholders of
US$32.4 million (2014: US$45.6 million) and on the weighted average number of
1,147.8 million (2014: 1,047.5 million after adjusting for the rights issue completed in
April 2015) shares after adjusting for the number of shares which are deemed to be issued
for no consideration under the Share-based Long-term Incentive Plans based on the average
share price during the period.
The weighted average number of shares is arrived at as follows:
Ordinary shares in millions
2014
2015
Weighted average number of shares for basic earnings per
share calculation
Adjustment for shares deemed to be issued for no consideration
under the Share-based Long-term Incentive Plans
Weighted average number of shares for diluted earnings per
share calculation

1,142.4

1,044.4

5.4

3.1

1,147.8

1,047.5

Additional basic and diluted earnings per share are also calculated based on underlying
profit attributable to shareholders. A reconciliation of earnings is set out below:
Six months ended 30th June
2014

2015

Profit attributable toshareholders
Non-trading items(note 7)
Underlying profit
attributable toshareholders

Basic
Dilutedearnings earnings
per share per share
US$m
US¢
US¢

Basic
Dilutedearnings earnings
per share per share
US$m
US¢
US¢

32.4

45.6

2.84

2.82

4.35

4.37

4.35

-

1.0

33.4

4.37

2.92

- more -

2.91

45.6

Page 16
7. NON-TRADING ITEMS
Non-trading items are separately identified to provide greater understanding of the Group’s
underlying business performance. Items classified as non-trading include items such as
gains on disposals, provisions against asset impairment and writebacks, andacquisition-related costs in business combinations thereof as well as material items of a
non-recurring in nature that require inclusion in order to provide additional insight into
underlying business performance.
An analysis of non-trading items after interest, tax and non-controlling interests is set out
below:
Six months ended 30th June
2014
2015
US$m
US$m
Acquisition-related costs- administration expenses- share of results of associates and joint venture

0.5
0.5
1.0

-

8. ACQUISITION OF HOTEL RITZ, MADRIDIn May 2015, the Group acquired the Hotel Ritz, Madrid for €130 million (US$148 million)
in a 50/50 joint venture with The Olayan Group. The hotel is to undergo a comprehensive
renovation in 2017, currently estimated to cost some €90 million (US$103 million). The
Group’s investment in the project, including the acquisition, renovation and transaction
expenses, is estimated to be €111 million (US$126 million). The Group has invested
US$72.9 million to the joint venture in the first half of 2015.
9. MUNICH EXPANSIONIn March 2014, the Group announced that it had entered into an agreement with a developer
for the expansion of Mandarin Oriental, Munich. The expansion will include new hotel
rooms and facilities as part of a mixed-use complex estimated to open in 2021. The
Group’s total investment in the project, which will also include a refurbishment of theexisting hotel’s 73 rooms, is estimated at €124 million (US$149 million), in today’s terms.
As at 30th June 2015 and 31st December 2014, cumulative costs paid by the Group in
relation to the expansion project amounted to US$16.9 million respectively, which havebeen included within Other Debtors pending transfer of title in the underlying land.
10. ISSUE OF SHARESIn April 2015, the Group completed a 1 for 4 rights issue with 250.9 million new ordinary
shares issued, raising US$316.2 million of gross proceeds. The proceeds of the issue wereused to pay down debt in advance of the proposed refurbishment of Mandarin Oriental
Hyde Park, London and to fund the Group’s acquisition of a 50% interest in the Hotel Ritz,
Madrid. The Group paid expenses of US$1.7 million in connection with the rights issue inthe first half of 2015.
The Group issued 1.0 million new ordinary shares under the Share-based Long-term
Incentive Plans with proceeds of US$1.3 million in the first half of 2015.
- more -Page 17
11. DIVIDENDS
Six months ended 30th June
2014
2015
US$m
US$m
Final dividend in respect of 2014 of US¢5.00(2013: US¢5.00) per share

50.2

50.1

An interim dividend in respect of 2015 of US¢2.00 (2014: US¢2.00) per share amounting to a
total of US$25.1 million (2014: US$20.1 million) is declared by the Board and will be accounted
for as an appropriation of revenue reserves in the year ending 31st December 2015.
12. CAPITAL COMMITMENTS

Capital commitments

2015
US$m

At 30th June
2014
US$m

At 31stDecember
2014
US$m

319.4

167.6

166.5

13. FINANCIAL INSTRUMENTS
Financial instruments by category
The fair values of financial assets and financial liabilities, together with carrying amounts at
30th June 2015 and 31st December 2014 are as follows:

30th June 2015
AssetsOther
investments
Debtors
Bank balancesand other liquid
funds
Liabilities
Other non-current
liabilities
Borrowings
Trade and otherpayablesexcludingnon-financial
liabilities

Other
financial
instruments
Available- at amortized
for-sale
cost
US$m
US$m

Loans andreceivables
US$m

Derivatives
used forhedging
US$m

61.0

-

11.3
-

282.1

-

343.1

Total
carrying
amount
US$m

Fair
value
US$m

-

11.3
61.0

11.3
61.0

-

-

282.1

282.1

-

11.3

-

354.4

354.4

-

(3.6)
-

-

(445.8)(3.6)(445.8)(3.6)(445.8)---(119.4)(119.4)(119.4)

-

(3.6)

-

(565.2)(568.8)(568.8)- more -Page 18
13. FINANCIAL INSTRUMENTS (CONTINUED)
Financial instruments by category (continued)

31st December 2014
AssetsOther
investments
Debtors
Bank balancesand other liquid
funds
Liabilities
Other non-current
liabilities
Borrowings
Trade and otherpayablesexcludingnon-financial
liabilities

Other
financial
instruments
Available- at amortized
cost
for-sale
US$m
US$m

Total
carrying
amount
US$m

Fair
value
US$m

Loans andreceivables
US$m

Derivatives
used forhedging
US$m

63.2

-

10.5
-

-

10.5
63.2

10.5
63.2

324.6

-

-

-

324.6

324.6

387.8

-

10.5

-

398.3

398.3

-

(3.0)
-

-

(727.7)(3.0)(727.7)(3.0)(727.6)---(139.9)(139.9)(139.9)

-

(3.0)

-

(867.6)(870.6)(870.5)

Fair value estimation(i) Financial instruments that are measured at fair value
For financial instruments that are measured at fair value in the balance sheet, thecorresponding fair value measurements are disclosed by level of the following fair value
measurement hierarchy:(a) Quoted prices (unadjusted) in active markets for identical assets or liabilities (‘quoted
prices in active markets’)
The fair value of listed securities, which are classified as available-for-sale, is based onquoted prices in active markets at the balance sheet date. The quoted market price used
for listed investments held by the Group is the current bid price.
(b) Inputs other than quoted prices in active markets that are observable for the asset or
liability, either directly or indirectly (‘observable current market transactions’)
The fair values of derivative financial instruments are determined using rates quoted by
the Group’s bankers at the balance sheet date. The rates for interest rate swaps andforward foreign exchange contracts are calculated by reference to market interest rates
and foreign exchange rates.
The fair values of unlisted investments, which are classified as available-for-sale andmainly include club and school debentures, are determined using prices quoted bybrokers at the balance sheet date.
- more -Page 19
13. FINANCIAL INSTRUMENTS (CONTINUED)
Fair value estimation (continued)(i) Financial instruments that are measured at fair value (continued)(c) Inputs for assets or liabilities that are not based on observable market data(‘unobservable inputs’)
The fair value of other unlisted securities, which are classified as available-for-sale,is determined using valuation techniques by reference to observable current market
transactions (including price-to earnings and price-to book ratios of listed securities
of entities engaged in similar industries) or the market prices of the underlying
investments with certain degree of entity specific estimates.
There were no changes in valuation techniques during the periods.
The table below analyzes financial instruments carried at fair value at 30th June 2015 and31st December 2014, by the levels in the fair value measurement hierarchy:
Quotedprices inactivemarkets
US$m

Observablecurrent
market Unobservabletransactions
inputs
US$m
US$m

Total
US$m

30th June 2015
AssetsAvailable-for-sale financial assets- unlisted investments

-

3.0

8.3

11.3

Liabilities
Derivative designated at fair value- through other comprehensive
income

-

(3.6)

-

(3.6)

31st December 2014
AssetsAvailable-for-sale financial assets- unlisted investments

-

2.9

7.6

10.5

Liabilities
Derivative designated at fairvalue
- through othercomprehensive income

-

(3.0)

-

(3.0)

There were no transfers among the three categories during the periods.

- more -Page 20
13. FINANCIAL INSTRUMENTS (CONTINUED)
Fair value estimation (continued)(i) Financial instruments that are measured at fair value (continued)
Movement of financial instruments which are valued based on unobservable inputs during
the six months ended 30th June 2015 and the year ended 31st December 2014 are as follow:
Availablefor-salefinancialassets
US$m
At 1st January 2015
Additions7.6
0.7

At 30th June 2015

8.3

At 1st January 2014
Additions

6.2
1.4

At 31st December 2014

7.6(ii) Financial instruments that are not measured at fair value
The fair values of current debtors, bank balances and other liquid funds, current
creditors and current borrowings are assumed to approximate their carrying amounts
due to the short-term maturities of these assets and liabilities.
The fair values of long-term borrowings are based on market prices or are estimatedusing the expected future payments discounted at market interest rates.
14. RELATED PARTY TRANSACTIONSIn the normal course of business the Group undertakes a variety of transactions with certainof its associates and joint venture.
The most significant of such transactions are management fees of US$6.4 million(2014: US$7.2 million) received from the Group’s six (2014: five) associate and joint
venture hotels which are based on long-term management agreements on normal
commercial terms.
There were no other related party transactions that might be considered to have a material
effect on the financial position or performance of the Group that were entered into orchanged during the first six months of the current financial year.
Amounts of outstanding balances with associates and joint venture are included in debtors
and prepayments, as appropriate.

- more -Page 21

Mandarin Oriental International Limited
Principal Risks and Uncertainties
The Board has overall responsibility for risk management and internal control. The following
have been identified previously as the areas of principal risk and uncertainty facing theCompany, and they remain relevant in the second half of the year:







Economic and Financial Risk
Commercial and Market Risk
Pandemic, Terrorism and Natural Disasters
Key Agreements
Intellectual Property and Value of the Brand
Regulatory and Political Risk

For greater detail, please refer to pages 97 and 98 of the Company’s Annual Report for 2014, a
copy of which is available on the Company’s website www.mandarinoriental.com.
Responsibility Statement
The Directors of the Company confirm to the best of their knowledge that:(a) the condensed financial statements have been prepared in accordance with IAS 34;
and(b) the interim management report includes a fair review of all information required to bedisclosed by the Disclosure and Transparency Rules 4.2.7 and 4.2.8 issued by the Financial
Conduct Authority in the United Kingdom.

For and on behalf of the Board
Edouard Ettedgui
Stuart Dickie
Directors
30th July 2015

- more -Page 22

The interim dividend of US¢2.00 per share will be payable on 14th October 2015 toshareholders on the register of members at the close of business on 21st August 2015. The
shares will be quoted ex-dividend on the Singapore Exchange and the London Stock
Exchange on 19th and 20th August 2015, respectively. The share registers will be closed
from 24th to 28th August 2015, inclusive.
Shareholders will receive their cash dividends in United States dollars, unless they are
registered on the Jersey branch register where they will have the option to elect forsterling. These shareholders may make new currency elections for the 2015 interim
dividend by notifying the United Kingdom transfer agent in writing by 25th September
2015. The sterling equivalent of dividends declared in United States dollars will becalculated by reference to a rate prevailing on 30th September 2015.
Shareholders holding their shares through CREST in the United Kingdom will receive their
cash dividends only in sterling as calculated above. Shareholders holding their sharesthrough The Central Depository (Pte) Limited (‘CDP’) in Singapore will receive their cash
dividends in United States dollars unless they elect, through CDP, to receive Singapore
dollars.
Shareholders on the Singapore branch register who wish to deposit their shares into the
CDP system by the dividend record date, being 21st August 2015, must submit the relevant
documents to M & C Services Private Limited, the Singapore branch registrar, no later
than 5.00 p.m. (local time) on 20th August 2015.
Mandarin Oriental Hotel Group
Mandarin Oriental Hotel Group is an international hotel investment and management groupwith deluxe and first class hotels, resorts and residences in sought-after destinations around theworld. Having grown from a well-respected Asian hotel company into a global brand, theGroup now operates, or has under development, 45 hotels representing almost 11,000 rooms in
24 countries, with 21 hotels in Asia, nine in The Americas and 15 in Europe, Middle East andNorth Africa. In addition, the Group operates, or has under development, 15 Residences at
Mandarin Oriental connected to its properties. The Group has equity interests in a number of its
properties and adjusted net assets worth approximately US$3.4 billion as at 30th June 2015.
Mandarin Oriental’s aim is to be recognized widely as the best global luxury hotel group,
providing 21st century luxury with oriental charm in each of its hotels. This will be achieved byinvesting in the Group’s exceptional facilities and its people, while maximizing profitability andlong-term shareholder value. The Group regularly receives recognition and awards foroutstanding service and quality management. The strategy of the Group is to open the hotels
currently under development, while continuing to seek further selective opportunities for
expansion around the world.
The parent company, Mandarin Oriental International Limited, is incorporated in Bermuda andhas a standard listing on the London Stock Exchange as its primary listing, with secondary
listings in Bermuda and Singapore. Mandarin Oriental Hotel Group International Limited,which operates from Hong Kong, manages the activities of the Group’s hotels. Mandarin
Oriental is a member of the Jardine Matheson Group.
- end -

Page 23
For further information, please contact:
Mandarin Oriental Hotel Group International Limited
Edouard Ettedgui / Stuart Dickie
Jill Kluge / Sally de Souza(852) 2895 9288
(852) 2895 9167

Brunswick Group Limited
Vanessa Gourlay(852) 3512 5079

As permitted by the Disclosure and Transparency Rules of the Financial Conduct Authority in
the United Kingdom, the Company will not be posting a printed version of the Half-Yearly
Results announcement to shareholders. The Half-Yearly Results announcement will remain
available on the Company’s website, www.mandarinoriental.com, together with other Groupannouncements.