To:

Business Editor

3rd August 2017
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 2017
Highlights
Lower earnings due to renovation of London propertyStrategic review of The Excelsior, Hong Kong announced
Four new management contracts signed“While earnings will continue to be impacted into 2018 by the renovation of the London
property, the Group’s strong brand, healthy balance sheet and portfolio growth will support its
future performance.”
Ben Keswick
Chairman
Results

Combined total revenue of hotels under management(1)Underlying EBITDA (Earnings before interest, tax,
depreciation and amortization)(2)Underlying profit attributable to shareholders(3)Profit attributable to shareholders
Underlying earnings per share(3)Earnings 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)(unaudited)
Six months ended 30th June
2017
2016
US$m
US$m
643.8
644.8
61.5
15.0
15.0
US¢
1.19
1.19
1.50
US$
0.97
3.13
26%
8%

70.8
24.7
22.9
US¢
1.97
1.82
1.50
US$
0.93
3.10
25%
8%

Change
%
–13
–39
–34
%
–40
–35
%
+4
+1

(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 ventures.
(3) The Group uses ‘underlying profit’ in its internal financial reporting to distinguish between ongoing businessperformance 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.
(4) At 30th June 2017 and 31st December 2016, respectively.
(5) The Group’s freehold and leasehold interests are carried in the consolidated balance sheet at amortized cost. Both theadjusted net asset value per share and net debt/adjusted shareholders’ funds for 30th June 2017 and 31st December
2016 have been adjusted to include the market value of the Group’s freehold and leasehold interests which wereappraised as at 31st December 2016.
The interim dividend of US¢1.50 per share will be payable on 19th October 2017 to shareholders on the register of members
at the close of business on 25th August 2017.

- more -Page 2
MANDARIN ORIENTAL INTERNATIONAL LIMITEDHALF-YEARLY RESULTS FOR THE SIX MONTHS ENDED 30TH JUNE 2017
OVERVIEWGroup earnings were lower during the first half of the year primarily due to the impact of theongoing renovation of the London property. The collective results of the Group’s other hotels
were largely in line with the first half of 2016.
In June, the Group announced it was undertaking a review of its long-term strategic options
with regard to The Excelsior, Hong Kong, including testing market interest in a possible saleof the property for redevelopment.
PERFORMANCE
Underlying earnings before interest, tax, depreciation and amortization for the first six monthsof 2017 were US$62 million, down from US$71 million in the first half of 2016.
Underlying profit for the period was US$15 million, compared with US$25 million in 2016,
and underlying earnings per share were US¢1.19, compared with US¢1.97 in 2016. With nonon-trading items during the period, profit attributable to shareholders was also
US$15 million. This compares to US$23 million in 2016, after deducting US$2 million oftransaction costs related to the acquisition of Mandarin Oriental, Boston.
An interim dividend of US¢1.50 per share has been declared, unchanged from last year.
At 30th June 2017, the Group’s net debt was US$321 million, compared to US$297 million at
the end of 2016.
GROUP REVIEWOverall Group earnings were lower during the first half of the year mainly due to the impactof the ongoing phased renovation in London. The Group’s results were also negatively
impacted by inclusion for the first time of the traditionally weak first quarter of the Boston
hotel, which was acquired at the end of April 2016. Elsewhere, weaker results in Jakarta and
New York were more than offset by improved performances in Paris, Munich andWashington. Results across the rest of the portfolio, including Hong Kong, were broadly
stable.
- more -Page 3
The renovation of Mandarin Oriental Hyde Park, London remains on schedule, with the firstphase due to complete in August. The second phase, which will commence in September, is
expected to complete in the second quarter of 2018.

STRATEGIC REVIEW OF THE EXCELSIOR, HONG KONG
Following an announcement in June, the Group is pursuing strategic options for The
Excelsior, Hong Kong, which include the possible sale of the property for redevelopment.
The wholly-owned property, which is the Group’s only four star hotel, is situated on a primecommercial site that has approval for the development of a commercial building. The process
is continuing and a further announcement will be made once a decision is reached on thepreferred course of action.

NEW DEVELOPMENTS
The Group announced four management contracts during the first half of 2017. New hotels,each with branded residences, are scheduled to open in Dubai and Honolulu in 2020, and in
Melbourne in 2022. The Group has also taken over the management of a hotel in Santiago,
Chile, which will be rebranded as Mandarin Oriental, Santiago once an extensive guestroom
and public area renovation has been completed.

OUTLOOK
While earnings will continue to be impacted into 2018 by the renovation of the London
property, the Group’s strong brand, healthy balance sheet and portfolio growth will support its
future performance.

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

Total
US$m

Underlying
business
performance
US$m

Total
US$m

-

286.7
(189.1)
97.6(19.8)(55.3)
22.5

288.2(185.6)102.6(20.0)(52.3)
30.3

(1.8)
(1.8)

288.2
(185.6)102.6(20.0)(54.1)
28.5

597.4(383.4)214.0(39.7)(104.5)
69.8

(1.8)
(1.8)

597.4
(383.4)214.0(39.7)(106.3)
68.0

(6.2)
0.6

-

(6.2)
0.6

(5.9)
0.7

-

(5.9)
0.7

(12.1)
1.3-(12.1)
1.3

(5.6)

-

(5.6)

(5.2)

-

(5.2)

(10.8)-(10.8)

3.0
19.9
(4.7)
15.2

-

3.0
19.9
(4.7)
15.2

5.0
30.1
(5.6)
24.5

(1.8)
(1.8)

5.0
28.3
(5.6)
22.7

11.2
70.2
(13.7)
56.5

(0.3)
(2.1)
(2.1)

10.9
68.1
(13.7)
54.4

15.0
0.2
15.2

-

15.0
0.2
15.2

24.7
(0.2)
24.5

(1.8)
(1.8)

22.9
(0.2)
22.7

57.3
(0.8)
56.5

(2.1)
(2.1)

55.2
(0.8)
54.4

US¢

US¢

US¢

US¢

US¢

US¢

1.19
1.19

1.19
1.19

1.97
1.96

1.82
1.82

4.56
4.54

4.40
4.38

Underlying
business
performance
US$m

286.7
(189.1)
97.6(19.8)(55.3)
22.5

Financing charges
Interest income
Net financing charges
Share of results of associates
and joint ventures (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
2016
Underlying
Nonbusinesstrading
performance
items
Total
US$m
US$m
US$m

2016
Nontrading
items
US$m

2017
Nontrading
items
US$m

- more -Page 5Mandarin Oriental International Limited
Consolidated Statement of Comprehensive Income(unaudited)
Six months ended
30th June
2016
2017
US$m
US$m

Year ended
31st
December
2016
US$m

15.2

22.7

54.4

-

-

(3.1)
0.5

-

-

(2.6)

61.6

(4.3)

(56.1)

(0.5)
0.1

-

2.5
(0.4)

4.6

4.2

(1.7)

65.8

(0.1)

(55.7)

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

65.8

(0.1)

(58.3)

Total comprehensive income/(expense) for theperiod

81.0

22.6

(3.9)

Attributable to:Shareholders of the Company
Non-controlling interests

80.6
0.4

22.8
(0.2)

(3.0)
(0.9)

81.0

22.6

(3.9)

Profit for the period
Other comprehensive income/(expense)
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 gains/(losses) arising during the period
Cash flow hedges- net (losses)/gains arising during the period
Tax relating to items that may be reclassified
Share of other comprehensive income/(expense)of associates and joint ventures- more -Page 6

Mandarin Oriental International Limited
Consolidated Balance Sheet(unaudited)
At 30th June
2016
2017
US$m
US$m

At 31stDecember2016
US$m

Net assets
Intangible assets
Tangible assets
Associates and joint ventures
Other investments
Deferred tax assets

44.5
1,416.0
176.6
10.7
2.2

43.9
1,386.9
171.6
11.1
2.5

44.3
1,352.1
163.8
10.7
2.6

Non-current assets

1,650.0

1,616.0

1,573.5

Stocks
Debtors and prepayments
Current tax assets
Bank and cash balances

6.1
84.6
4.4
157.2

6.3
92.6
1.3
181.7

5.9
94.2
5.2
182.6

Current assets

252.3

281.9

287.9

Creditors and accruals
Current borrowings
Current tax liabilities(131.4)
(0.2)
(9.2)

(126.9)
(3.3)
(7.9)

(140.1)
(2.5)
(8.7)

Current liabilities(140.8)(138.1)(151.3)

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

111.5(477.8)(55.7)
(3.8)
(1.0)

143.8
(482.0)(57.5)
(1.0)
(1.7)

136.6
(477.4)(56.1)(3.2)-

1,223.2

1,217.6

1,173.4

Total equity
Share capital
Share premium
Revenue and other reserves

62.9
492.8
663.1

62.8
490.3
659.7

62.8
490.4
616.2

Shareholders’ funds
Non-controlling interests

1,218.8
4.4

1,212.8
4.8

1,169.4
4.0

1,223.2

1,217.6

1,173.4- more -Page 7
Mandarin 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 2017 (unaudited)
At 1st January 2017
Total comprehensive income
Dividends paid by the Company
Issue of shares
Share-based long-term incentive plans
Transfer
At 30th June 2017

62.8
0.1
62.9

490.4
2.4
492.8

286.2
0.1
(18.9)
267.4

501.2
15.0
(31.4)
16.5
501.3

(0.6)
(0.4)
(1.0)

(170.6)66.0(104.6)

1,169.4
80.6(31.4)
0.1
0.1
1,218.8

4.0
0.4
4.4

1,173.4
81.0(31.4)
0.1
0.1
1,223.2

Six months ended 30th June 2016 (unaudited)
At 1st January 2016
Total comprehensive income
Dividends paid by the Company
Share-based long-term incentive plans
At 30th June 2016

62.8
62.8

490.3
490.3

284.5
1.0
285.5

504.7
22.9
(37.7)
489.9

(2.7)
(2.7)

(112.9)(0.1)(113.0)1,226.7
22.8(37.7)
1.0
1,212.8

5.0
(0.2)
4.8

1,231.7
22.6(37.7)
1.0
1,217.6

Total comprehensive income for the six months ended 30th June 2017 included in revenue reserves comprised profit attributable to shareholders of
the Company of US$15.0 million (2016: US$22.9 million). There was no net fair value loss on other investments in 2017 (2016: nil).
(Consolidated Statement of Changes in Equity continued on page 8)- more -Page 8Mandarin Oriental International Limited
Consolidated Statement of Changes in Equity (continued)

Year ended 31st December 2016
At 1st January 2016
Total comprehensive income
Dividends paid by the Company
Dividends paid to non-controlling interests
Share-based long-term incentive plans
Transfer
At 31st December 2016

SharecapitalUS$m

Sharepremium
US$m

Capitalreserves
US$m

Revenue
reserves
US$m

Hedging
reserves
US$m

62.8
62.8

490.3
0.1
490.4

284.5
2.2
(0.5)
286.2

504.7
52.6
(56.5)
0.4
501.2

(2.7)
2.1
(0.6)

Attributabletoshareholders
Exchangeof thereserves
Company
US$m
US$m(112.9)(57.7)(170.6)

1,226.7(3.0)(56.5)
2.2
1,169.4

Attributable
to noncontrollinginterests
US$m

Total
equity
US$m

5.0
(0.9)
(0.1)
4.0

1,231.7(3.9)(56.5)(0.1)
2.2
1,173.4

Total comprehensive income for the year ended 31st December 2016 included in revenue reserves comprised profit attributable to shareholders of
the Company of US$55.2 million and net actuarial loss on employee defined benefit plans of US$2.6 million. There was no net fair value loss on otherinvestments in 2016.

- more -Page 9Mandarin Oriental International Limited
Consolidated Cash Flow Statement(unaudited)
Six months ended
30th June
2016
2017
US$m
US$m

Year ended
31st
December
2016
US$m

22.5
26.0
1.0
0.3
5.7
0.7
(7.0)
(4.5)
44.7

28.5
26.2
1.0
(15.5)
0.8
(5.5)
(7.6)
27.9

68.0
57.7
2.1
2.7
(3.8)
1.3
(10.4)(19.0)
98.6

Dividends and interest from associates andjoint ventures

2.0

4.3

9.1

Cash flows from operating activities

46.7

32.2

107.7

Investing activities
Purchase of tangible assets
Purchase of intangible assets
Payment on Munich expansion (note 8)
Acquisition of Mandarin Oriental, Boston (note 9)
Purchase of other investments
Advance to associates and joint ventures
Repayment of loans to associates and joint ventures
Sale of tangible assets(36.2)
(0.9)
(2.9)
(0.7)
(1.9)
0.8
-

(31.2)(0.7)(140.0)
(1.1)
(1.2)
-

(77.0)(2.7)(140.0)
(1.3)
(2.8)
0.9
0.1

Cash flows from investing activities(41.8)(174.2)(222.8)

-

-

51.5
(0.8)
(37.7)
(0.1)

51.5
(1.6)
(56.5)(0.1)(33.8)(28.9)
182.5
3.6
157.2

12.9
(129.1)
308.6
2.0
181.5

(6.7)
(121.8)
308.6
(4.3)
182.5

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

Financing activities
Drawdown of borrowings
Repayment of borrowings
Dividends paid by the Company (note 10)
Dividends paid to non-controlling interests(2.4)(31.4)Cash flows from financing activities
Net decrease 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- 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’. 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.
There are no new standards or amendments, which are effective in the current accounting
period and relevant to the Group’s operations, that have a significant effect on the Group’s
accounting policies. There have been no changes to the accounting policies described in
the 2016 annual financial statements.
2. REVENUE
Six months ended 30th June
2016
2017
US$m
US$m
By geographical area:
Hong Kong
Other Asia
EuropeThe Americas

109.8
51.5
72.9
52.5

109.3
51.8
87.3
39.8

286.7

288.2

3. EBITDA FROM SUBSIDIARIES (EARNINGS BEFORE INTEREST, TAX,
DEPRECIATION AND AMORTIZATION)
Six months ended 30th June
2016
2017
US$m
US$m
By geographical area:
Hong Kong
Other Asia
EuropeThe Americas

31.4
13.2
1.1
3.8

33.4
13.4
8.1
2.6

Underlying EBITDA from subsidiaries
Non-trading items- acquisition-related costs (note 7)

49.5

57.5

-

(1.8)

EBITDA from subsidiaries
Less: depreciation and amortization

49.5(27.0)

55.7(27.2)

Operating profit

22.5

28.5

- more -Page 11
4. SHARE OF RESULTS OF ASSOCIATES AND JOINT VENTURES
Depreciation
andEBITDA amortization
US$m
US$m

Six months ended
30th June 2017
By geographical area:
Other Asia
EuropeThe Americas

Six months ended
30th June 2016
By geographical area:
Other Asia
EuropeThe Americas

Operatingprofit/(loss)
US$m

Net
financingcharges
US$m

Tax
US$m

Net
profit/(loss)
US$m

10.2
0.9
0.9

(4.2)
(0.4)
(1.5)

6.0
0.5
(0.6)

(0.7)
(1.1)

(1.1)
-

4.2
0.5
(1.7)

12.0

(6.1)

5.9

(1.8)

(1.1)

3.0

10.1
0.6
2.6

(3.8)
(0.2)
(1.5)

6.3
0.4
1.1

(0.7)
(1.1)

(1.0)
-

4.6
0.4
-

13.3

(5.5)

7.8

(1.8)

(1.0)

5.0

5. TAX
Six months ended 30th June
2016
2017
US$m
US$m
Tax (charged)/credited to profit and loss is analyzed as follows:
Current tax
Deferred tax

By geographical area:
Hong Kong
Other Asia
EuropeThe Americas

(5.9)
1.2

(6.8)
1.2

(4.7)

(5.6)

(4.0)
(0.1)
(0.6)
-

(3.9)
(0.2)
(1.1)
(0.4)

(4.7)

(5.6)

Tax relating to components of other comprehensive income or expense comprises cash
flow hedges of US$0.1 million (2016: nil).
Tax on profits has been calculated at rates of taxation prevailing in the territories in which
the Group operates.
Share of tax of associates and joint ventures of US$1.1 million (2016: US$1.0 million) is
included in share of results of associates and joint ventures (note 4).
- more -Page 12
6. EARNINGS PER SHARE
Basic earnings per share are calculated on the profit attributable to shareholders of
US$15.0 million (2016: US$22.9 million) and on the weighted average number of
1,257.2 million (2016: 1,255.9 million) shares in issue during the period.
Diluted earnings per share are calculated on profit attributable to shareholders of
US$15.0 million (2016: US$22.9 million) and on the weighted average number of
1,261.0 million (2016: 1,261.2 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
2016
2017
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 sharecalculation

1,257.2

1,255.9

3.8

5.3

1,261.0

1,261.2

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
2016

2017

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¢

15.0

22.9

1.19

1.19

1.82

1.97

1.96

1.8

-

15.0

1.82

1.19

- more -

1.19

24.7

Page 13
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 gains andlosses arising from the sale of businesses, investments and properties; impairment of
non-depreciable intangible assets and other investments; provisions for the closure ofbusinesses; acquisition-related costs in business combinations; provisions against asset
impairment and writebacks; 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
2016
2017
US$m
US$m
Acquisition-related costs- administration expenses-

1.8

8. PAYMENT ON MUNICH EXPANSIONThe Group paid a further US$2.9 million instalment in respect of the land purchase pricefor the expansion of Mandarin Oriental, Munich during the six months ended 30th June
2017. As at 30th June 2017 and 31st December 2016, cumulative costs paid by the Groupamounted to US$19.8 million and US$16.9 million respectively, the majority of whichhave been included within Other Debtors pending transfer of title in the underlying land.
9. ACQUISITION OF MANDARIN ORIENTAL, BOSTONIn April 2016, the Group completed its US$140.0 million acquisition of Mandarin Oriental,
Boston, a hotel that the Group had managed since its opening in 2008. The consideration of
US$140.0 million represented the fair value of the tangible assets acquired at theacquisition date. There was no goodwill arising on acquisition.
10. DIVIDENDS
Six months ended 30th June
2016
2017
US$m
US$m
Final dividend in respect of 2016 of US¢2.50(2015: US¢3.00) per share

31.4

37.7

An interim dividend in respect of 2017 of US¢1.50 (2016: US¢1.50) per share amounting toa total of US$18.9 million (2016: US$18.8 million) has been declared by the Board and will
be accounted for as an appropriation of revenue reserves in the second half of the year
ending 31st December 2017.

- more -Page 14
11. CAPITAL COMMITMENTS
Total capital commitments at 30th June 2017 and 31st December 2016 amounted to
US$258.8 million and US$270.9 million respectively.
12. FINANCIAL INSTRUMENTS
Financial instruments by category
The fair values of financial assets and financial liabilities, together with carrying amounts at
30th June 2017 and 31st December 2016 are as follows:

30th June 2017
AssetsOther
investments
Debtors
Bank and cash
balances

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

53.3

-

10.7
-

-

10.7
53.3

10.7
53.3

157.2

-

-

-

157.2

157.2

210.5

-

10.7

-

221.2

221.2

-

(1.0)
-

-

(478.0)(1.0)(478.0)(1.0)(478.0)---(124.2)(124.2)(124.2)

-

(1.0)

-

(602.2)(603.2)(603.2)- more -Totalcarrying
amount
US$m

Fair
value
US$m

Page 15
12. FINANCIAL INSTRUMENTS (CONTINUED)
Financial instruments by category (continued)

31st December 2016
AssetsOther
investments
Debtors
Bank and cash
balances
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

Total
carrying
amount
US$m

Fair
value
US$m

65.8

-

10.7
-

-

10.7
65.8

10.7
65.8

182.6

-

-

-

182.6

182.6

248.4

-

10.7

-

259.1

259.1

-

-

-

(479.9)(479.9)(479.9)

-

(0.6)

-

(134.1)(134.7)(134.7)

-

(0.6)

-

(614.0)(614.6)(614.6)

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, which are classified as available-for-sale andmainly include club and school debentures, are determined using prices quoted bybrokers at the balance sheet date.
(b) Inputs for assets or liabilities that are not based on observable market data(‘unobservable inputs’)
The fair values of other unlisted securities, which are classified as available-for-sale, aredetermined using valuation techniques by reference to observable current market
transactions (including price-to earnings and price-to book ratios of listed securities ofentities engaged in similar industries) or the market prices of the underlying investmentswith certain degree of entity specific estimates.
- more -Page 16
12. FINANCIAL INSTRUMENTS (CONTINUED)
Fair value estimation (continued)(i) Financial instruments that are measured at fair value (continued)
There were no changes in valuation techniques during the six months ended 30th June 2017
and the year ended 31st December 2016.
The table below analyzes financial instruments carried at fair value at 30th June 2017 and31st December 2016, by the levels in the fair value measurement hierarchy:
Observablecurrent
markettransactions
US$m

Unobservable
inputs
US$m

Total
US$m

30th June 2017
AssetsAvailable-for-sale financial assets- unlisted investments

2.1

8.6

10.7

Liabilities
Derivative designated at fair value- through other comprehensive income

(1.0)

-

(1.0)

31st December 2016
AssetsAvailable-for-sale financial assets- unlisted investments

2.1

8.6

10.7

Liabilities
Derivative designated at fair value- through other comprehensive income

(0.6)

-

(0.6)

There were no transfers among the two categories during the six months ended
30th June 2017 and the year ended 31st December 2016.

- more -Page 17
12. 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 2017 and the year ended 31st December 2016 are
as follows:
Availablefor-salefinancialassets
US$m
At 1st January 2017
Additions

8.6-

At 30th June 2017

8.6

At 1st January 2016
Additions

8.1
0.5

At 31st December 2016

8.6(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.
13. 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$6.2 million(2016: US$6.5 million) received from the Group’s six (2016: 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
and prepayments, as appropriate.

- more -Page 18

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
Reputational Risk and Value of the Brand
Regulatory and Political Risk

For greater detail, please refer to pages 89 and 90 of the Company’s Annual Report for 2016, 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 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
Stuart Dickie
Directors- more -Page 19

The interim dividend of US¢1.50 per share will be payable on 19th October 2017 toshareholders on the register of members at the close of business on 25th August 2017. The
shares will be quoted ex-dividend on the Singapore Exchange and the London Stock
Exchange on 23rd and 24th August 2017, respectively. The share registers will be closed
from 28th August to 1st September 2017, 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 2017 interim
dividend by notifying the United Kingdom transfer agent in writing by 29th September
2017. The sterling equivalent of dividends declared in United States dollars will becalculated by reference to a rate prevailing on 4th October 2017.
Shareholders holding their shares through CREST in the United Kingdom will receive their
cash dividends in sterling only 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 25th August 2017, 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 24th August 2017.
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 30
hotels and eight residences in 20 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$3.9 billion as at 30th June 2017.
Mandarin Oriental’s aim is to be recognized as the world’s best luxury hotel group. This will beachieved by investing in the Group’s exceptional facilities and its people, while maximizing
profitability and long-term shareholder value. The Group regularly receives recognition andawards for outstanding service and quality management. The Group is committed to exceeding
its guests’ expectations through exceptional levels of hospitality, while maintaining its position
as an innovative leader in the hotel industry. 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, 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 -

Page 20
For further information, please contact:
Mandarin Oriental Hotel Group International Limited
James Riley / Stuart Dickie
Jill Kluge / Sally de Souza(852) 2895 9288
(852) 2895 9167

Brunswick Group Limited
Kirsten Molyneux(852) 3512 5053

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.