30th July 2020
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 2020
Highlights

Underlying loss of US$102 million

Majority of hotels closed during second quarterGroup’s balance sheet and funding position remain robust“The Group saw substantial underlying losses in the first half of the year as a consequence of
the COVID-19 pandemic. A material recovery in business levels is not expected until 2021 at
the earliest and a significant further loss is therefore likely in the second half of 2020. The
Board remains confident that the Group’s robust financial position and strong brand will enable
Mandarin Oriental to weather the downturn and return to profit when luxury travel begins torecover.”
Ben Keswick
Chairman

Results

Combined total revenue of hotels under management(1)Revenue
Underlying EBITDA (Earnings before interest, tax,
depreciation and amortisation)(2)Underlying (loss)/profit attributable to shareholders(3)Loss attributable to shareholders
Underlying (loss)/earnings per share(3)Loss per share
Interim dividend per share
Net asset value per share(4)Adjusted net asset value per share(4)(5)
Net debt/shareholders’ funds(4)Net debt/adjusted shareholders’ funds(4)(5)
(1)
(2)
(3)

(4)
(5)

(unaudited)
Six months ended 30th June
2020
2019
US$m
US$m
276.4
641.0
95.5
279.6
(50.1)(101.8)(435.5)US¢(8.06)(34.48)
US$
2.90
4.34
11%
8%

69.1
10.7
(12.1)
US¢
0.85(0.96)
1.50
US$
3.26
4.70
7%
5%

Change
%
–57
–66
N/A
N/A
N/A
%
N/A
N/A
N/A
%
–11
–8

Combined revenue includes turnover of the Group’s subsidiary hotels in addition to 100% of revenue from associate, joint venture and managed hotels.
EBITDA of subsidiaries plus the Group’s share of EBITDA of associates and joint ventures.
The Group uses ‘underlying profit’ in its internal financial reporting to distinguish between ongoing business performance and non-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.
At 30th June 2020 and 31st December 2019, respectively.
The Group’s investment property under development is carried at fair value on the basis of valuations carried out by independent valuers at 30th June 2020 and 31st
December 2019. The other freehold and leasehold interests are carried at amortised cost in the consolidated balance sheet. Both the adjusted net asset value pershare and net debt/adjusted shareholders’ funds for 30th June 2020 and 31st December 2019 have included the market value of the Group’s freehold and leaseholdinterests which were appraised as at 31st December 2019.

- more -Page 2
MANDARIN ORIENTAL INTERNATIONAL LIMITEDHALF-YEARLY RESULTS FOR THE SIX MONTHS ENDED 30TH JUNE 2020
OVERVIEWAll of the Group’s hotels were either closed or operated at single-digit percentage occupancy
levels for much of the second quarter. Combined total revenue of hotels under management
fell by 57% in the first half of 2020 compared to the equivalent period in 2019, with the
majority of this decline occurring in the second quarter, which saw combined total revenues
86% lower than the same period last year. A number of cost containment measures have been
implemented, but significant underlying losses were incurred in the first half of the year.
FINANCIAL PERFORMANCE
Underlying losses before interest, tax, depreciation and amortisation for the first half of 2020
were US$50 million, compared to earnings of US$69 million in the first half of 2019.
Underlying losses for the period were US$102 million, compared to an underlying profit of
US$11 million in the first half of 2019.
The biannual revaluation of The Excelsior site at 30th June 2020 resulted in a non-cash
decrease of 10% or US$334 million, as a result of a decline in open market office and retailrents in Hong Kong in the first half of the year. Together with the underlying loss, thisresulted in a total loss attributable to shareholders for the period of US$436 million.
At 30th June 2020, net debt was US$412 million compared to US$300 million at the end of
2019. This reflected US$52 million of capital expenditure during the period, primarily in
relation to the renovation of Mandarin Oriental Ritz, Madrid and the redevelopment of
The Excelsior site. Gearing was 8% of adjusted shareholders’ funds, compared to 5% at theend of 2019. The Group’s financial position remains robust and it is well-placed to weather a
prolonged downturn.

At 30th June 2020, the Group had US$187 million of cash reserves andUS$217 million in available, committed debt facilities.
In light of the substantially reduced levels of business, no interim dividend will be paid.
HOTEL PERFORMANCEIn Europe and America, all hotels were closed from late March onwards.

Hotels in Asia andthe Middle East mostly remained open during the first half, although operating at very low
occupancy levels once anti-pandemic restrictions and border controls were imposed.

- more -Page 3
The Group’s flagship Hong Kong hotel remained open, but with single-digit percentage
occupancy levels for most of the second quarter, and the hotel made a loss during the first half.
It did, however, benefit from a partial recovery in food & beverage business when government
anti-pandemic measures were relaxed.

The remainder of the Group’s owned hotels also

incurred losses in the second quarter, despite cost containment measures.
On a more positive note, in June the Group’s hotels on the Chinese mainland saw a significant
recovery in occupancy levels to some 40%. Elsewhere, a number of the Group’s hotels havebegun to reopen in anticipation of some demand but, in many cases, this demand is expected toremain low and not in line with normal market conditions.
NEW DEVELOPMENTS
A management contract was signed in July 2020 for a new hotel and residences project inVienna, which is scheduled to open in 2023.
PEOPLEOn behalf of the Board, I would like to thank all our colleagues for their continuing dedication,
hard work and professionalism during such challenging times.
I stepped down as Managing Director on 15th June 2020 and was succeeded by John Witt, who
joins the Board. I will continue as Chairman.
OUTLOOK
The Group saw substantial underlying losses in the first half of the year as a consequence of the
COVID-19 pandemic.

A material recovery in business levels is not expected until 2021 at theearliest and a significant further loss is therefore likely in the second half of 2020.

The Board

remains confident that the Group’s robust financial position and strong brand will enable
Mandarin Oriental to weather the downturn and return to profit when luxury travel begins torecover.

Ben Keswick
Chairman- more -Page 4
Mandarin Oriental International Limited
Consolidated Profit and Loss Account(unaudited)
Six months ended 30th June

2020

Total
US$m

Underlying
business
performance
US$m

Non-trading
Items
US$m

-

95.5
(122.1)(26.6)(16.2)(52.7)

279.6(185.8)93.8(21.2)(58.8)

14.4

-

14.4

Operating (loss)/profit (note 3)(81.1)(333.7)(333.7)

Financing charges
Interest income

(8.0)
1.1

Net financing charges
Share of results of associates andjoint ventures (note 4)

Revenue (note 2)
Cost of sales
Gross (loss)/profit
Selling and distribution costs
Administration expenses
Other operating
income/(expense)
Change in fair value ofinvestment property underdevelopment(Loss)/profit before tax
Tax (note 5)(Loss)/profit after tax
Attributable to:Shareholders of the Company(note 6 & 7)
Non-controlling interests(Loss)/earnings per share (note 6)- basic- diluted

Underlying
business
performance
US$m

Non-trading
Items
US$m

95.5
(122.1)(26.6)(16.2)(52.7)

Year ended 31st December
2019

2019
Total
US$m

Underlying
business
performance
US$m

Non-trading
Items
US$m

Total
US$m

-

279.6
(185.8)93.8(21.2)(58.8)

566.5(364.7)201.8(38.8)(117.2)-566.5(364.7)201.8(38.8)(117.2)

11.8(32.3)(20.5)

25.2(32.7)(7.5)(333.7)(414.8)25.6

8.8(23.5)

8.8
2.1

71.0

(67.3)(100.0)(67.3)(29.0)

-

(8.0)
1.1

(9.4)
1.8

-

(9.4)
1.8

(18.1)
3.4-(18.1)
3.4

(6.9)

-

(6.9)

(7.6)

-

(7.6)

(14.7)-(14.7)(13.5)(101.5)(0.3)(101.8)(333.7)(333.7)(13.5)(435.2)(0.3)(435.5)

(1.6)
16.4
(5.8)
10.6

(23.5)
0.7(22.8)

(1.6)
(7.1)
(5.1)
(12.2)(1.7)
54.6(13.5)
41.1(100.0)3.3(96.7)(1.7)(45.4)(10.2)(55.6)(101.8)(101.8)(333.7)(333.7)(435.5)(435.5)

10.7
(0.1)
10.6

(22.8)(22.8)(12.1)(0.1)(12.2)

41.2
(0.1)
41.1

(96.7)(96.7)(55.5)(0.1)(55.6)

US¢

US¢

US¢

US¢

US¢

US¢

(8.06)(8.06)(34.48)(34.48)0.85
0.85(0.96)(0.96)

3.26
3.26(4.39)(4.39)- more -Page 5Mandarin Oriental International Limited
Consolidated Statement of Comprehensive Income(unaudited)
Six months ended
30th June
2020
2019
US$m
US$m
Loss for the period
Other comprehensive (expense)/income

Year ended
31st
December
2019
US$m(435.5)(12.2)(55.6)

-

(0.6)

3.4

-

2,943.4
0.1

2,943.4(0.6)-

2,942.9

2,946.2

1.3

12.8

25.0

(9.9)
1.6

(2.4)
0.4

(0.4)
0.1

(4.1)

2.0

3.1

(11.1)

12.8

27.8

Other comprehensive (expense)/income for theperiod, net of tax(11.1)

2,955.7

2,974.0

Total comprehensive (expense)/income for theperiod(446.6)

2,943.5

2,918.4

Attributable to:Shareholders of the Company
Non-controlling interests(446.5)(0.1)

2,943.5-

2,918.4-(446.6)

2,943.5

2,918.4

Items that will not be reclassified to profit or loss:
Remeasurements of defined benefit plans
Revaluation surplus of right-of-use assets before
transfer to investment property underdevelopment (note 8)
Tax on items that will not be reclassified
Items that may be reclassified subsequently to
profit or loss:
Net exchange translation differences- net gains arising during the period
Cash flow hedges- net losses arising during the period
Tax relating to items that may be reclassified
Share of other comprehensive (expense)/incomeof associates and joint ventures- more -Page 6

Mandarin Oriental International Limited
Consolidated Balance Sheet(unaudited)
At 30th June
2020
2019
US$m
US$m

At 31stDecember2019
US$m

Net assets
Intangible assets
Tangible assets
Right-of-use assets
Investment property under development (note 8)
Associates and joint ventures
Other investments
Deferred tax assets
Pension assets
Non-current debtors

49.5
1,147.3297.9
2,657.9
208.9
15.3
11.5
0.8
4.8

50.4
1,179.6305.5
3,020.3
208.6
16.2
12.0
4.9

53.0
1,174.6
300.3
2,967.7
203.1
15.9
10.6
1.3
6.2

Non-current assets

4,393.9

4,797.5

4,732.7

StocksCurrent debtors
Current tax assets
Bank and cash balances

5.9
62.3
2.2
187.1

5.8
99.2
2.0
211.1

6.2
97.2
1.9
270.7

Current assets

257.5

318.1

376.0

Current creditors
Current borrowings
Current lease liabilities
Current tax liabilities(130.1)(41.9)(7.0)(11.7)(147.7)(2.5)(6.9)(17.5)(166.0)(2.5)(7.0)(19.1)

Current liabilities(190.7)(174.6)(194.6)

Net current assets
Long-term borrowings
Non-current lease liabilities
Deferred tax liabilities
Pension liabilities
Non-current creditors

66.8(557.2)(166.2)(58.0)(9.3)

143.5(544.3)(173.3)(58.1)
(2.6)
(1.5)

181.4
(568.6)(168.4)(59.4)(0.2)(0.9)

3,670.0

4,161.2

4,116.6

Total equity
Share capital
Share premium
Revenue and other reserves

63.2
499.7
3,103.9

63.1
499.7
3,594.8

63.2
499.7
3,550.1

Shareholders’ funds
Non-controlling interests

3,666.8
3.2

4,157.6
3.6

4,113.0
3.6

3,670.0

4,161.2

4,116.6- more -Page 7
Mandarin Oriental International Limited
Consolidated Statement of Changes in Equity

Six months ended 30th June 2020 (unaudited)
At 1st January 2020
Total comprehensive income
Change in interest in a subsidiary
At 30th June 2020
Six months ended 30th June 2019 (unaudited)
At 1st January 2019
Total comprehensive income
Dividends paid by the Company
Issue of shares
Share-based long-term incentive plans
Change in interest in a subsidiary
Transfer
At 30th June 2019

Attributable
to Attributable
to nonshareholders
Exchangeof the controlling
reserves
interests
Company
US$m
US$m
US$m

Share
capitalUS$m

Sharepremium
US$m

Capitalreserves
US$m

Asset
Revenue revaluation
reserves
reserves
US$m
US$m

63.2
63.2

499.7
499.7

260.3
260.3

434.8
(435.5)0.3(0.4)

2,943.4
2,943.4

(8.7)
(8.7)

(88.4)(2.3)(90.7)

4,113.0(446.5)
0.3
3,666.8

3.6
(0.1)
(0.3)
3.2

4,116.6(446.6)
3,670.0

63.1
63.1

497.8
0.1
1.8
499.7

262.5
0.3
(1.8)
261.0

525.0
(12.6)(18.9)
0.2
493.7

2,943.4
2,943.4

0.6
(2.1)
(1.5)

(116.6)14.8(101.8)1,232.4
2,943.5(18.9)
0.1
0.3
0.2
4,157.6

3.8
(0.2)
3.6

1,236.2
2,943.5(18.9)
0.1
0.3
4,161.2

Hedging
reserves
US$m

Total
equityUS$mRevenue reserves as at 30th June 2020 included cumulative fair value loss on the investment property under development of US$401.0 million.
(Consolidated Statement of Changes in Equity continued on page 8)- more -Page 8Mandarin Oriental International Limited
Consolidated Statement of Changes in Equity (continued)
Attributable
to Attributable
to nonshareholders
Exchangeof the controlling
reserves
interests
Company
US$m
US$m
US$m

Share
capitalUS$m

Sharepremium
US$m

Capitalreserves
US$m

Revenue
reserves
US$m

Asset
revaluation
reserves
US$m

Hedging
reserves
US$m

Year ended 31st December 2019
At 1st January 2019
Total comprehensive income
Dividends paid by the Company
Issue of shares
Share-based long-term incentive plans
Change in interest in a subsidiary
Transfer

63.1
0.1
-

497.8
0.1
1.8

262.5
(0.3)
(1.9)

525.0
(52.6)(37.9)
0.2
0.1

2,943.4
-

0.6
(0.6)
-

(116.6)28.2-

1,232.4
2,918.4(37.9)
0.2
(0.3)
0.2
-

3.8
(0.2)
-

1,236.2
2,918.4(37.9)
0.2(0.3)-

At 31st December 2019

63.2

499.7

260.3

434.8

2,943.4-(88.4)

4,113.0

3.6

4,116.6- more -Total
equityUS$mPage 9Mandarin Oriental International Limited
Consolidated Cash Flow Statement(unaudited)
Six months ended
30th June
2020
2019
US$m
US$m

Year ended
31st
December
2019
US$m

Operating activities
Operating (loss)/profit
Depreciation and amortisation
Other non-cash items
Movements in working capitalInterest received
Interest and other financing charges paid
Tax paid(414.8)
37.4
335.6
(0.9)
1.3
(8.1)
(8.3)
(57.8)

2.1
59.7
(8.0)
(22.0)
1.7(10.4)(3.7)
19.4(29.0)
91.9
69.0
(3.1)
3.4
(19.2)
(6.0)
107.0

-

3.2

5.9

Cash flows from operating activities(57.8)

22.6

112.9

Investing activities
Purchase of tangible assets
Additions to investment property under development
Purchase of intangible assets
Payment on Munich expansion
Purchase of other investments
Advance to associates and joint ventures
Repayment of loans to associates and joint ventures(14.3)(11.1)(3.2)(0.4)(23.1)
0.4(27.9)
(4.0)
(2.8)
(0.7)
(0.9)
(15.8)
0.4(41.7)(15.1)
(8.3)
(1.1)
(1.1)
(16.7)
3.6

Cash flows from investing activities(51.7)(51.7)(80.4)

Financing activities
Issue of shares
Drawdown of borrowings
Repayment of borrowings
Principal elements of lease payments
Dividends paid by the Company (note 9)

32.4
(3.6)
-

0.1
537.7
(523.3)(3.2)(18.9)

0.1
555.8(522.3)(6.4)(37.9)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

28.8(80.7)
270.7
(2.9)
187.1

(7.6)
(36.7)
246.8
1.0
211.1

(10.7)
21.8
246.8
2.1
270.7

Dividends and interest from associates andjoint ventures- more -Page 10

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’ and on a going concern basis. The condensed financial statements
have not been audited or reviewed by the Group’s auditors pursuant to the UK Auditing
Practices Board guidance on the review of interim financial information.
The Group had early adopted the ‘Interest Rate Benchmark Reform: Amendments to IFRS
9, IAS 39 and IFRS 7’ (effective 1st January 2020) for the Group’s annual reporting period
commencing 1st January 2019.
There are no changes to the accounting policies as described in the 2019 annual financial
statements other than the following changes in relation to government grants. Other
amendments which are effective in 2020 and relevant to the Group’s operations, do nothave a significant effect on the Group’s accounting policies. The Group has not early
adopted any other standard or amendments that have been issued but not yet effective.
Government grants
Grants from government are recognised at their fair values where there is reasonableassurance that the grants will be received, and the Group will comply with the conditions
associated with the grants.
Grants that compensate the Group for expenses incurred are recognised in the profit andloss as other income on a systematic basis in the period in which the expenses arerecognised. Unconditional grants are recognised in the profit and loss as other income
when they become receivable.
Grants related to assets are deducted in arriving at the carrying value of the related assets.
2. REVENUE
Six months ended 30th June
2020
2019
US$m
US$m
By geographical area:
Asia
Europe, Middle East and Africa (‘EMEA’)
America

Revenue from contracts with customers:
Recognised at a point in time
Recognised over time
Revenue from other sources:
Rental income- more -

43.7
37.2
14.6

150.2
77.6
51.8

95.5

279.6

37.8
49.7
87.5

104.8
164.8
269.6

8.0

10.0

95.5

279.6

Page 11
3. EBITDA FROM SUBSIDIARIES (EARNINGS BEFORE INTEREST, TAX,
DEPRECIATION AND AMORTISATION)
Six months ended 30th June
2020
2019
US$m
US$m
By geographical area:
Asia
EMEA
America(15.5)(10.0)(18.2)

44.6
13.0
2.3

Underlying EBITDA from subsidiaries(43.7)

59.9

-

(7.7)

-

7.7

-

(6.5)

(333.7)
-

8.8
(0.4)

(333.7)1.9(377.4)61.8(37.4)(34.3)(414.8)(25.4)
2.1

Non-trading items (note 7)Fire at Mandarin Oriental Hyde Park, London- repair expenses and write-off of tangible
assets and other incidental expenses- insurance recovery for replacement oftangible assets and other incidental expenses
Closure of The Excelsior, Hong Kong
- other costs
Change in fair value of investment property
under development
Change in fair value of other investments

EBITDA from subsidiaries
Underlying depreciation and amortisation fromsubsidiaries
Non-trading items (note 7)
Closure of The Excelsior, Hong Kong
- accelerated depreciation and amortisation
Operating (loss)/profit

Included in other operating income were government grants, the majority of which were insupport of employee retention, of US$10.1 million in relation to the COVID-19 pandemic forthe six months ended 30th June 2020.

- more -Page 12
4. SHARE OF RESULTS OF ASSOCIATES AND JOINT VENTURES
Depreciation
andEBITDA amortisation
US$m
US$m

Six months ended
30th June 2020
By geographical area:
Asia
EMEA
America

Six months ended
30th June 2019
By geographical area:
Asia
EMEA
America

Operating(loss)/
profitUS$m

Net
financingcharges
US$m

Tax
US$m

Net
(loss)/
profit
US$m

(0.5)
(2.4)
(3.5)

(4.5)
(0.2)
(1.4)

(5.0)
(2.6)
(4.9)

(1.0)
(0.9)

0.9
-

(5.1)
(2.6)
(5.8)

(6.4)

(6.1)

(12.5)(1.9)

0.9(13.5)

9.1
(2.0)
2.1

(6.1)
(0.2)
(1.3)

3.0
(2.2)
0.8

(0.9)
(1.2)

(1.0)
(0.1)

1.1
(2.2)
(0.5)

9.2

(7.6)

1.6

(2.1)

(1.1)

(1.6)

Included in share of results of associates and joint ventures were the Group’s share ofgovernment grants, the majority of which were in support of employee retention, of
US$1.6 million in relation to the COVID-19 pandemic for the six months ended
30th June 2020.
5. TAX
Six months ended 30th June
2020
2019
US$m
US$m
Tax (charged)/credited to profit and loss is analysed as follows:
Current tax
Deferred tax

By geographical area:
Asia
EMEA
America

(0.6)
0.3

(8.7)
3.6

(0.3)

(5.1)

(0.6)
0.3
-

(2.9)
(1.9)
(0.3)

(0.3)

(5.1)

Tax credit relating to cash flow hedges of US$1.6 million (2019: US$0.4 million) is
included in other comprehensive income or expense.

- more -Page 13
5. TAX (CONTINUED)
Tax on profits has been calculated at rates of taxation prevailing in the territories in which
the Group operates.
Share of tax credit of associates and joint ventures of US$0.9 million (2019: tax charge of
US$1.1 million) is included in share of results of associates and joint ventures (note 4).
6. EARNINGS PER SHARE
Basic loss/earnings per share are calculated on loss attributable to shareholders of
US$435.5 million (2019: US$12.1 million) and on the weighted average number of
1,263.2 million (2019: 1,262.6 million) shares in issue during the period.
Diluted loss/earnings per share are calculated on loss attributable to shareholders of
US$435.5 million (2019: US$12.1 million) and on the weighted average number of
1,263.2 million (2019: 1,263.2 million) 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
2020
2019
Weighted average number of shares for basic earnings per sharecalculation
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

1,263.2

1,262.6-

0.6

1,263.2

1,263.2

Additional basic and diluted loss/earnings per share are also calculated based on underlying
loss/profit attributable to shareholders. A reconciliation of earnings is set out below:
Six months ended 30th June
2020

Loss attributable toshareholders
Non-trading items(note 7)
Underlying (loss)/
profit attributable
to shareholders

2019

Basic
Dilutedloss
loss
per share per share
US$m
US¢
US¢

Basic
Diluted(loss)/(loss)/
earnings earnings
per share per share
US$m
US¢
US¢

(435.5)(12.1)(34.48)(34.48)333.7(101.8)(0.96)(0.96)

0.85

0.85

22.8

(8.06)- more -(8.06)

10.7

Page 14
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 items include fair value
gains or losses on revaluation of investments property under development and investments
which are measured at fair value through profit and loss; gains and losses arising from thesale of businesses, investments and properties; impairment of non-depreciable intangible
assets and other investments; provisions for the closure of businesses; acquisition-related
costs in business combinations; and other credits and charges of a non-recurring nature that
require inclusion in order to provide additional insight into underlying businessperformance.
An analysis of non-trading items after interest, tax and non-controlling interests is set out
below:
Six months ended 30th June
2020
2019
US$m
US$m
Fire at Mandarin Oriental Hyde Park, London- repair expenses and write-off of tangible assets
and other incidental expenses- insurance recovery for replacement of tangible
assets and other incidental expenses
Closure of The Excelsior, Hong Kong
- accelerated depreciation and amortisation- other costs
Change in fair value of investment property
under development (note 8)
Change in fair value of other investments- more -

-

(7.7)

-

7.7

-

(25.3)(5.9)(333.7)
-

8.8
(0.4)

(333.7)(22.8)

Page 15
8. INVESTMENT PROPERTY UNDER DEVELOPMENT
Following the closure of The Excelsior, Hong Kong, by the end of March 2019, its use
has been changed from a hotel property to a commercial property for redevelopment.
The site was revalued and transferred from a right-of-use asset held at historicaldepreciated cost to an investment property under development subject to regularvaluation reviews. The revaluation surplus of US$2,943.4 million was recognised to theasset revaluation reserve through other comprehensive income on 31st March 2019.
Subsequent fair value change of the investment property under development has beenrecognised as a non-trading item in the profit and loss.
Six months ended
30th June
2020
2019
US$m
US$m

Year ended
31st
December
2019
US$m

Fair value at beginning of period
Transfer from right-of-use assets on 31st March
Exchange differences
Additions(Decrease)/increase in fair value

2,967.7
12.8
11.1(333.7)2,993.6
13.9
4.0
8.8

2,993.6
25.5
15.9(67.3)

Fair value at end of period

2,657.9

3,020.3

2,967.7

9. DIVIDENDS
Six months ended 30th June
2020
2019
US$m
US$m
No final dividend in respect of 2019(2018: US¢1.50 per share)

-

18.9

No interim dividend in respect of 2020 has been declared by the Board (2019: US¢1.50 per
share amounting to a total of US$19.0 million).
10. CAPITAL COMMITMENTS
Total capital commitments at 30th June 2020 and 31st December 2019 amounted to
US$736.7 million and US$765.6 million, respectively.

- more -Page 16
11. FINANCIAL INSTRUMENTS
Financial instruments by category
The fair values of financial assets and financial liabilities, together with carrying amounts at
30th June 2020 and 31st December 2019 are as follows:

Fair value ofhedging
instruments
US$m

Fair value
Financialthroughassets at
profit and loss amortised cost
US$m
US$m

Other
financialliabilities atamortised
costs
US$m

Total
carrying
amount
US$m

Fair
value
US$m

30th June 2020
Financial assets
measured at fair value
Other investments

-

15.3

-

-

15.3

15.3

Financial assets notmeasured at fair value
Debtors
Bank and cash balances

-

-

51.3
187.1

-

51.3
187.1

51.3
187.1

-

-

238.4

-

238.4

238.4

(9.3)

-

-

-

(9.3)

(9.3)

-

-

-

(599.1)(173.2)(599.1)(173.2)(599.1)(173.2)---(106.4)(106.4)(106.4)---(878.7)(878.7)(878.7)

Financial liabilities
measured at fair value
Derivative financial
instruments
Financial liabilities notmeasured at fair value
Borrowings
Lease liabilities
Trade and other payable
excluding non-financial
liabilities- more -Page 17
11. FINANCIAL INSTRUMENTS (CONTINUED)
Financial instruments by category (continued)

Fair value ofhedging
instruments
US$m

31st December 2019
Financial assets
measured at fair value
Other investments
Derivative financial
instruments
Financial assets notmeasured at fair value
Debtors
Bank and cash balances

Financial liabilities
measured at fair value
Derivative financial
instruments
Financial liabilities notmeasured at fair value
Borrowings
Lease liabilities
Trade and other payable
excluding non-financial
liabilities

Fair value
Financialthroughassets at
profit and loss amortised cost
US$m
US$m

Other
financialliabilities atamortised
costs
US$m

Total
carrying
amount
US$m

Fair
value
US$m

-

15.9

-

-

15.9

15.9

1.5
1.5

15.9

-

-

1.5
17.4

1.5
17.4

-

-

61.4
270.7

-

61.4
270.7

61.4
270.7

-

-

332.1

-

332.1

332.1

(0.9)

-

-

-

(0.9)

(0.9)

-

-

-

(571.1)(175.4)(571.1)(175.4)(571.1)(175.4)---(132.4)(132.4)(132.4)---(878.9)(878.9)(878.9)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) 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 and caps
and forward foreign exchange contracts are calculated by reference to market interest
rates and foreign exchange rates.
The fair values of unlisted investments mainly include club and school debentures, aredetermined using prices quoted by brokers at the balance sheet date.
- more -Page 18
11. FINANCIAL INSTRUMENTS (CONTINUED)
Fair value estimation (continued)(i) Financial instruments that are measured at fair value (continued)(b) Inputs for assets or liabilities that are not based on observable market data(‘unobservable inputs’)
The fair values of other unlisted investments are determined using valuation techniquesby reference to observable current market transactions (including price-to earnings andprice-to book ratios of listed securities of entities engaged in similar industries), or themarket prices of the underlying investments with certain degree of entity specificestimates or discounted cash flow by projecting the cash flows from these investments.
There were no changes in valuation techniques during the six months ended 30th June 2020
and the year ended 31st December 2019.
The table below analyses financial instruments carried at fair value at 30th June 2020 and
31st December 2019, by the levels in the fair value measurement hierarchy:
Observable
marketcurrenttransactions
US$m

Unobservable
inputs
US$m

Total
US$m

30th June 2020
AssetsOther investments

4.6

10.7

15.3

Liabilities
Derivative financial instruments at fair value- through other comprehensive income

(9.3)

-

(9.3)

4.6

11.3

15.9

1.5

-

1.5

6.1

11.3

17.4

(0.9)

-

(0.9)

31st December 2019
AssetsOther investments
Derivative financial instruments at fair value- through other comprehensive income
Liabilities
Derivative financial instruments at fair value- through other comprehensive income

There were no transfers among the two categories during the six months ended
30th June 2020 and the year ended 31st December 2019.

- more -Page 19
11. 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 2020 and the year ended 31st December 2019are as follows:
Unlisted
investments
US$m
At 1st January 2020
Additions
Disposals

11.3
0.4
(1.0)

At 30th June 2020

10.7

At 1st January 2019
Additions

9.1
2.2

At 31st December 2019

11.3

(ii) Financial instruments that are not measured at fair value
The fair values of current debtors, bank and cash balances, 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.
12. RELATED PARTY TRANSACTIONSIn the normal course of business, the Group undertakes a variety of transactions with certainof its associates and joint ventures.
The most significant of such transactions are management fees of US$2.7 million(2019: US$7.3 million) received from the Group’s six (2019: six) 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 ventures are included in debtors
as appropriate.

- more -Page 20

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. The risk of a global pandemic,
such as COVID-19, had been highlighted as a key risk.







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

For greater detail, please refer to pages 115 and 116 of the Company’s 2019 Annual Report, acopy 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 Guidance 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
James Riley
Craig Beattie
Directors
Dividend Information for Shareholders
In light of the substantially reduced levels of business, no interim dividend in respect of the2020 financial year will be paid.

- more -Page 21

About 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 its Asian roots into a global brand, the Group now operates 33
hotels and seven residences in 23 countries and territories, with each property reflecting theGroup’s oriental heritage and unique sense of place. Mandarin Oriental has a strong pipelineof hotels and residences under development. The Group has equity interests in a number of its
properties and adjusted net assets worth approximately US$5.5 billion as at 30th June 2020.
Mandarin Oriental’s aim is to be recognised as the world’s best luxury hotel group. This will
be achieved by investing in the Group’s exceptional facilities and its people, and seeking
selective opportunities for expansion around the world, while maximising profitability andlong-term shareholder value. The Group regularly receives recognition and awards foroutstanding service and quality management. The Group is committed to exceeding its guests’
expectations through exceptional levels of hospitality, while maintaining its position as aninnovative leader in the hotel industry.
The parent company, Mandarin Oriental International Limited, is incorporated in Bermuda andhas a standard listing on the London Stock Exchange, with secondary listings in Bermuda andSingapore. 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 theJardine Matheson Group.
- end For further information, please contact:
Mandarin Oriental Hotel Group International Limited
James Riley / Craig Beattie
Sally de Souza(852) 2895 9288
(852) 2895 9167

Brunswick Group Limited
David Ashton(852) 3512 5063

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