2019 ANNUAL RESULTS
Mandarin Oriental Hotel Group

2019 Annual Performance and Highlights• Re-opening of Hyde Park London hotel and Bangkok hotel• Commenced redevelopment of The Excelsior site
• Four new hotels opened, seven new projects announced• Fans of M.O. exceeded half a million members• Pledge to eliminate all single-use plastic on premises by March 2021

• Earnings benefited from London re-opening but impacted byclosure of The Excelsior, renovation in Bangkok and social unrest inHong Kong
MANDARIN ORIENTAL

2019 Annual Results Highlights
US $ m2019

2018^

Combined Total Revenue*

1,325

1,398

Group Revenue#567

614

Underlying EBITDA

155

188

restated^ The comparative figures in 2018 have been restated due to the adoption of the new accounting standard - IFRS 16 ‘Leases’* Includes revenue from the total portfolio of owned and managed hotels#Includes revenue from the Group’s subsidiary hotels as well as the Group’s management and branding activities

MANDARIN ORIENTAL

2019 Annual Results Highlights
2019

2018
restated

Underlying Profit Attributable to Shareholders (US $ m)

4165
#Net Non-Trading Losses (US $ m)

(97)

(22)

Underlying Earnings per Share (US ¢)

3.26

5.15

Total Dividends per Share (US ¢)

3.00

3.00

Adjusted Net Asset Value per Share (US $)

4.70

4.62

# Includes US$67 million (1%) decrease in valuation of The Excelsior site and US$29 million of accelerated depreciation of hotel assets andclosure costs

MANDARIN ORIENTAL

2019 Annual RevPAR Performance
600-1%

500

526 532400

US $ 300
200
100+1%-1%Asia^

279 280

201 2040•

314 3110%EMEA^

America2019
2018

TotalAll references to RevPAR are in US dollar terms on a like-for-like basis, unless otherwise stated. The like-for-like basis only includes hotels that weretrading in the portfolio for a full year for both 2018 and 2019. Mandarin Oriental, Bangkok has been included up until the end of February 2019 when thehotel closed for renovation, and the two Hong Kong hotels are included up until the end of June 2019, prior to the impact of the social unrest. Including
results for the full year for the two Hong Kong hotels, RevPAR of the overall portfolio decreased by 4% as compared to the prior year
Europe, Middle East and Africa

MANDARIN ORIENTALCURRENT GLOBAL PORTFOLIOLondon
Paris

New York

BostonWashington DCMiamiPrague

MunichGenevaBarcelona
Lake ComoMadrid
Milan
BodrumMarrakech
Doha

Beijing

Dubai

Abu Dhabi
Canouan

Guangzhou
Sanya
BangkokTokyo

ShanghaiHong Kong
Taipei
Macau

Kuala Lumpur
Singapore
JakartaSantiago

33 hotels
MANDARIN ORIENTAL

2019 Annual Hotel Performance
Asia – Overall RevPAR down 1%*
Mandarin Oriental, Hong Kong

Impacted by social unrest, though F&B resilientTokyo

Solid earnings and RevPAR performance

Singapore

Maintained strong performance from 2018

BangkokRiver Wing closed for renovation

Kuala Lumpur

Occupancy increased by 15%* The two Hong Kong hotels are included up until the end of June 2019, prior to the impact of the social unrest. Including results for the full year for these two hotels,

RevPAR of the Asia region decreased by 8% as compared to the prior year

MANDARIN ORIENTAL

2019 Annual Hotel Performance
EMEA – Overall RevPAR down 1%*
Paris

Increased occupancy despite ongoing protests

MunichLocal currency RevPAR up 7%Geneva

Reduced occupancy, stable ratesLondon

Quickly re-established leading position in the city

MadridOpening in late summer 2020

* Because Mandarin Oriental Hyde Park, London was partially closed during periods of both 2018 and 2019, its performance has been excluded from the RevPAR statistics.

MANDARIN ORIENTAL

2019 Annual Hotel Performance
America – Overall RevPAR up 1%
BostonRemains market leader despite increased supplyMiami

5% increase in RevPAR

New York

Market leading position, though revenues lower

Washington D.C.

Improvement needed despite RevPAR growth

MANDARIN ORIENTAL

Redevelopment of The Excelsior Site• Commenced on 1st May 2019

• Demolition is 40% complete• Constructions costs of some US$650 million and expected tocomplete in 2025
• The Excelsior contributed US$9 million in underlying EBITDA in
2019, compared to US$35 million in 2018

MANDARIN ORIENTAL

Strategy• To be recognised as the world's best luxury hotel group• Brand is the Group's most powerful asset• People underpin the Mandarin Oriental experience• Personalisation is key• Digital technologies are a major opportunity• Expanding the portfolio is a key priority• Colleagues must be empowered to innovate and to act sustainably
MANDARIN ORIENTALDEVELOPMENTDEVELOPMENT PORTFOLIO
Moscow

LondonLuzern

New York

Barcelona

DallasBoca Raton
Honolulu

Grand Cayman

Istanbul

BeijingNanjing

Tel Aviv
Dubai

ShenzhenMuscatManilaPhuketSaigonExpected to open within the next 5 years
Hotels (18)Residences (12)MANDARIN ORIENTAL

Development Strategy• Major city-centre and resort locations where brand is currently absent• Reinforce position in key markets• Grow hotel portfolio by an average of three new properties per year

MANDARIN ORIENTAL

No. of Projects

Number of Announced New Projects
8765432102014

2015201620172018

2019

Year
* Excluding the previously announced projects in Beirut (2015), Melbourne (2017) and Viña del Mar (2018) which are currently on hold

MANDARIN ORIENTAL

New Project
Mandarin Oriental Residences at 685 Fifth Avenue(Management contract)• 69 branded residences

MANDARIN ORIENTAL

New Project
Mandarin Oriental Etiler, Istanbul(Management contract)• Second luxury hotel in Istanbul• 158 rooms and 251 branded residences

MANDARIN ORIENTAL

New Project
Mandarin Oriental, Nanjing(Management contract)• Located on Qinhuai River• 106 rooms and suites

MANDARIN ORIENTAL

New Project
Mandarin Oriental Palace, Luzern(Management contract)• 146 rooms and suites

MANDARIN ORIENTAL

New Project
Mandarin Oriental, Dallas(Management contract)• 176 rooms and 100 branded residences

MANDARIN ORIENTAL

New Project
Mandarin Oriental, Tel Aviv
(Management contract)• 225 rooms and 231 branded residences• First luxury hospitality brand to enter the city

MANDARIN ORIENTAL

New Project
Emirates Palace, Abu Dhabi(Management contract)• 394 rooms and suites• To be rebranded as a Mandarin Orientalproperty after a phased renovation
completes• The Group’s second hotel in the United
Arab Emirates

MANDARIN ORIENTAL

Hotel Openings
Mandarin Oriental, Doha
Opened on 9th March 2019

Mandarin Oriental Jumeira, Dubai
Opened on 18th February 2019

Mandarin Oriental, Lago di Como
Opened on 15th April 2019

Mandarin Oriental Wangfujing,
Beijing
Opened on 15th March 2019

MANDARIN ORIENTAL

FINANCIAL REVIEWUnderlying EBITDA Performance
Key Highlights
US $ m2019

Underlying EBITDA

155

2018
restated188• Closure of The Excelsior had substantial impact on earnings• Impact of Hong Kong protests broadly offset by improved profitability andinsurance recovery in London• Tokyo underlying EBITDA up some 30%• EBITDA from associates and joint ventures lower due to Bangkok renovation• Management business lower due to one-off termination fees received in 2018
MANDARIN ORIENTAL

Financial Review
Non-trading Items
US $ mFire at Mandarin Oriental Hyde Park, London
Repair expenses and write-off of tangible assets andother incidental expenses
Insurance recovery for replacement of tangible assets
and other incidental expenses
Closure of The Excelsior, Hong Kong
Accelerated depreciation and amortisation and othercosts
Change in fair value of investment property underdevelopment
Change in fair value of other investments

Net non-trading losses

2019

2018
restated

(8)

(29)

930

(29)

(27)

(67)

-(2)
(97)

4(22)
MANDARIN ORIENTAL

Financial Review

Cash Flow Statement – Operating Activities
2019

US $ mrestated

Operating Activities
EBITDA from subsidiaries and non-cash items
Dividends and interest from associates and JVs
Working capital movement
Net interest and other financing charges paid
Tax paid
Total##2018132
6(3)
(16)
(6)
113

160
818(14)(19)
153

Includes the changes in fair value of The Excelsior site in 2019 and the changes in fair value of other investments in 2018

MANDARIN ORIENTAL

Financial Review

Cash Flow Statement – Investing Activities
2019

US $ m2018
restated

Investing activities
Net capital expenditure on existing properties
Capex for redevelopment of The Excelsior
Payment on Munich expansion
Net advance to associates and joint ventures
Others#Total
#(42)
(15)
(1)
(13)
(9)

(53)
(8)
(8)

(80)

(69)

Principally investment costs relating to Mandarin Oriental Ritz, Madrid
MANDARIN ORIENTAL

Financial Review

Summary Cash Flow Statement
US $ m2019

2018

Operating Activities
Investing Activities
Financing Activities
Net drawdown of borrowings
Dividends paid
Others
Net increase in cash
Opening cash balance 1st January
Effect of exchange rate changes
Closing cash balance 31st December

113
(80)

153
(69)

34(38)
(7)
22247
2271

28(38)
(7)
67
184
(4)
247

restated

MANDARIN ORIENTAL

Financial Review
Net Debt
US $ mNet debt
Adjusted shareholders’ funds#Gearing
Adjusted net asset value per share (US $)Hedging ratio on gross debt
Average tenor on debt
Cash
Undrawn committed debt facilities

2019

2018
restated

300
5,936
5%
4.70
47%
4.2 years
271
249

285
5,827
5%
4.62
44%
0.8 years
247
78• Weighted average interest rate on gross borrowings was 2.6% (2.6% in 2018)• EBITDA interest cover, including the Group's share of associates and joint ventures, was 8.6 times (10.7 times in 2018)#Includes the market value of the Group’s ownership interest in its freehold and leasehold properties
MANDARIN ORIENTAL

Financial Review

Future Significant Capital Commitments
US $Timing

Madrid restoration (Group’s 50% share)

30m

2020

Munich extension

137m

2020-24

Redevelopment of The Excelsior site

575m

2020-25

Total742m• The Group’s strong balance sheet is well-placed to fund capital commitments through the use of external
debt and cash reserves

MANDARIN ORIENTAL

Coronavirus Update• Significant impact to occupancy from late January in mainland Chinaand Hong Kong hotels• Other Asian hotels also affected, but so far to a lesser extent• Recent developments will impact Europe and Middle Eastern hotels• Too early to assess impact on 2020 results, full impact will dependon duration and geographic extent of the virus

MANDARIN ORIENTAL

2020 Outlook• Remain focused on long-term strategic priorities• Full year of earnings from the newly renovated London hotel• Full re-opening of Bangkok hotel• Absence of earnings from The Excelsior hotel• Mandarin Oriental Ritz, Madrid to open in late summer

MANDARIN ORIENTAL

Questions to investors@mohg.com