To:

Business Editor

28th July 2016
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 2016
Highlights
 Challenging conditions in a number of key markets
 Underlying earnings 26% lower
 Acquisition of Mandarin Oriental, Boston complete“Challenging trading conditions are expected to continue to impact the Group’s performance
during the second half of the year. Nevertheless, the Group benefits from its strong
competitive position and balance sheet.”
Ben Keswick
Chairman
Results

Combined total revenue of hotels under management(2)Underlying EBITDA (Earnings before interest, tax,
depreciation and amortization)(3)Underlying profit attributable to shareholders(4)Profit attributable to shareholders
Underlying earnings per share(4)Earnings per share
Interim dividend per share
Net asset value per share(5)Adjusted net asset value per share(5)(6)
Net debt/shareholders’ funds(5)Net debt/adjusted shareholders’ funds(5)(6)(unaudited)
Six months ended 30th June
2016(1)
2015
US$m
US$m
640.9
643.8
70.8
24.7
22.9
US¢
1.97
1.82
1.50
US$
0.97
2.83
25%
9%

82.2
33.4
32.4
US¢
2.92
2.84
2.00
US$
0.98
2.84
11%
4%

Change
%
–14
–26
–29
%
–33
–36
–25
%
-

(1) Per share numbers reflect the Company’s rights issue in March 2015.
(2) Combined revenue includes turnover of the Group’s subsidiary hotels in addition to 100% of revenue from associate,joint venture and managed hotels.
(3) EBITDA of subsidiaries plus the Group’s share of EBITDA of associates and joint ventures.
(4) 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.
(5) At 30th June 2016 and 31st December 2015, respectively.
(6) The adjusted net asset value per share and net debt/adjusted shareholders’ funds have been adjusted to include themarket value of the Group’s freehold and leasehold interests which are carried in the consolidated balance sheet atamortized cost.
The interim dividend of US¢1.50 per share will be payable on 12th October 2016 to shareholders on the register of members
at the close of business on 19th August 2016.

- more -Page 2
MANDARIN ORIENTAL INTERNATIONAL LIMITEDHALF-YEARLY RESULTS FOR THE SIX MONTHS ENDED 30TH JUNE 2016

OVERVIEWThe Group faced challenging trading conditions in a number of its key markets in the firsthalf of the year, resulting in lower earnings for the period.

PERFORMANCE
Underlying earnings before interest, tax, depreciation and amortization for the first six
months of 2016 were US$71 million, down from US$82 million in the first half of 2015.

Underlying profit for the period was US$25 million, compared with US$33 million in 2015,
and underlying earnings per share were US¢1.97, compared with US¢2.92 in 2015. Profit
attributable to shareholders for the period was US$23 million, compared with
US$32 million in 2015, after deducting acquisition transaction costs in both periods.

An interim dividend of US¢1.50 per share has been declared, compared to US¢2.00 per
share last year.

GROUP REVIEWThe Group experienced softer demand in many of its key markets, particularly Hong Kong,
London and Paris.

There was also an adverse impact from a rooms renovation programmein Washington D.C.

The Group did benefit from a positive trading environment in Tokyo,

a return to normal operations in Munich following a public area renovation, and acontribution from the newly acquired Mandarin Oriental, Boston.

BUSINESS DEVELOPMENTS
On 27th April 2016, the Group acquired Mandarin Oriental, Boston for US$140 million, ahotel the Group has managed since it opened in October 2008.

The previously announced

18 month renovation of Mandarin Oriental Hyde Park, London is scheduled to begin in
September 2016.

The hotel will be renovated in two stages that will allow it to remain

open during the renovation period, albeit with reduced facilities and room inventory.

- more -Page 3
Mandarin Oriental currently operates 29 hotels and eight residences in 19 countries andterritories. The Group has a strong pipeline of hotels and residences under development,with the next hotel opening in Doha in the first half of 2017.

On 5th July, the Groupannounced that it will brand and manage luxury Residences at Mandarin Oriental adjacentto Mandarin Oriental, Bali.

An initial 30 branded residences are scheduled to becompleted at the same time as the hotel opens in mid-2018.

PEOPLEOn 1st April 2016, James Riley was appointed as Group Chief Executive replacing Edouard
Ettedgui, who remains on the Board as a non-executive Director.
Board on 1st August 2016.

Y.K. Pang will join the

We were saddened by the death of Lord Leach in June 2016.

He made a significant contribution to the Group and his wise counsel will be greatly missed.

OUTLOOK
Challenging trading conditions are expected to continue to impact the Group’s performance
during the second half of the year.

Nevertheless, the Group benefits from its strong

competitive position and balance sheet.

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

(1.8)
(1.8)

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

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

(0.5)
(0.5)

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

607.3(362.1)245.2(37.0)(100.4)
107.8

(0.5)
(0.5)

607.3
(362.1)245.2(37.0)(100.9)
107.3

(5.9)
0.7

-

(5.9)
0.7

(8.0)
1.1

-

(8.0)
1.1

(13.7)
1.9-(13.7)
1.9

(5.2)

-

(5.2)

(6.9)

-

(6.9)

(11.8)-(11.8)

5.0
30.1
(5.6)
24.5

(1.8)
(1.8)

5.0
28.3
(5.6)
22.7

4.7
40.9
(7.2)
33.7

(0.5)
(1.0)
(1.0)

4.2
39.9
(7.2)
32.7

11.0
107.0
(16.6)
90.4

(0.5)
(1.0)
(1.0)

10.5
106.0
(16.6)
89.4

24.7
(0.2)
24.5

(1.8)
(1.8)

22.9
(0.2)
22.7

33.4
0.3
33.7

(1.0)
(1.0)

32.4
0.3
32.7

90.3
0.1
90.4

(1.0)
(1.0)

89.3
0.1
89.4

US¢

US¢

US¢

US¢

US¢

US¢

1.97
1.96

1.82
1.82

2.92
2.91

2.84
2.82

7.53
7.50

7.44
7.41

Underlying
business
performance
US$m

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

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
2015
Underlying
Nonbusinesstrading
performance
items
Total
US$m
US$m
US$m

2015
Nontrading
items
US$m

2016
Nontrading
items
US$m

- more -Page 5Mandarin Oriental International Limited
Consolidated Statement of Comprehensive Income(unaudited)
Six months ended
30th June
2015
2016
US$m
US$m

Year ended
31st
December
2015
US$m

22.7

32.7

89.4

-

-

(5.4)
0.9

-

-

(4.5)

(4.3)

(10.4)(43.3)

-

(0.6)
0.1

(0.6)
-

4.2

(4.4)

(11.7)(0.1)(15.3)(55.6)

Other comprehensive expense for the period, netof tax(0.1)(15.3)(60.1)

Total comprehensive income for the period

22.6

17.4

29.3

Attributable to:Shareholders of the Company
Non-controlling interests

22.8
(0.2)

16.8
0.6

29.3
-

22.6

17.4

29.3

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 arising during the period
Revaluation of other investments- transfer to profit and loss
Fair value losses on cash flow hedges
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
2015
2016
US$m
US$m

At 31stDecember2015
US$m

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

43.9
1,386.9
171.6
11.1
2.5

44.5
1,279.8
170.2
11.3
6.1
2.2

44.1
1,255.0
164.4
10.2
2.8

Non-current assets

1,616.0

1,514.1

1,476.5

Stocks
Debtors and prepayments
Current tax assets
Bank and cash balances

6.3
92.6
1.3
181.7

5.7
91.4
1.3
282.1

6.0
89.9
1.8
308.6

Current assets

281.9

380.5

406.3

Creditors and accruals
Current borrowings
Current tax liabilities(126.9)
(3.3)
(7.9)

(124.6)(2.3)(12.2)(138.6)
(4.2)
(9.3)

Current liabilities(138.1)(139.1)(152.1)

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

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

241.4
(443.5)(62.9)(3.6)

254.2(436.2)(59.8)(3.0)

1,217.6

1,245.5

1,231.7

Total equity
Share capital
Share premium
Revenue and other reserves

62.8
490.3
659.7

62.8
492.0
685.1

62.8
490.3
673.6

Shareholders’ funds
Non-controlling interests

1,212.8
4.8

1,239.9
5.6

1,226.7
5.0

1,217.6

1,245.5

1,231.7- 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 2016 (unaudited)
At 1st January 2016
Total comprehensive income
Dividends paid by the Company
Issue of shares
Employee share option schemes
Transfer
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

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

Total comprehensive income for the six months ended 30th June 2016 included in revenue reserves comprises profit attributable to shareholders of
the Company of US$22.9 million (2015: US$32.4 million). There was no net fair value loss on other investments in 2016 (2015: 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 2015
At 1st January 2015
Total comprehensive income
Dividends paid by the Company
Issue of shares
Employee share option schemes
Transfer
At 31st December 2015

SharecapitalUS$m

Sharepremium
US$m

Capitalreserves
US$m

Revenue
reserves
US$m

Hedging
reserves
US$m

50.2
12.6
62.8

188.2
301.4
0.7
490.3

283.1
2.3
(0.9)
284.5

495.6
84.2
(75.3)
0.2
504.7

(2.7)
(2.7)

Attributabletoshareholders
Exchangeof thereserves
Company
US$m
US$m(58.0)(54.9)(112.9)956.4
29.3(75.3)
314.0
2.3
1,226.7

Attributable
to noncontrollinginterests
US$m

Total
equity
US$m

5.0
5.0

961.4
29.3
(75.3)
314.0
2.3
1,231.7

Total comprehensive income for the year ended 31st December 2015 included in revenue reserves comprises profit attributable to shareholders of theCompany of US$89.3 million. There was no net fair value loss on other investments in 2015.

- more -Page 9Mandarin Oriental International Limited
Consolidated Cash Flow Statement(unaudited)
Six months ended
30th June
2015
2016
US$m
US$m

Year ended
31st
December
2015
US$m

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

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

107.3
50.6
2.3
2.2
(1.6)
2.0
(12.1)(18.5)
132.2

Dividends and interest from associates andjoint ventures

4.3

4.0

8.0

Cash flows from operating activities

32.2

46.2

140.2

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

Investing activities
Purchase of tangible assets
Purchase of intangible assets
Acquisition of Mandarin Oriental,
Boston (note 8)
Acquisition of Hotel Ritz, Madrid (note 9)
Purchase of other investments
Advance to joint ventures
Repayment of loans to associates
Sale of other investments(31.2)(0.7)(14.1)(0.6)(50.0)(1.5)(140.0)
(1.1)
(1.2)
-

(72.9)(0.7)-(73.3)
(0.9)
(0.1)
0.6
0.8

Cash flows from investing activities(174.2)(88.3)(124.4)

Financing activities
Issue of shares (note 10)
Drawdown of borrowings
Repayment of borrowings
Dividends paid by the Company (note 11)
Dividends paid to non-controlling interests

51.5
(0.8)
(37.7)(0.1)

315.8(261.2)(50.2)-

314.0(261.5)(75.3)-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

12.9(129.1)
308.6
2.0
181.5

4.4
(37.7)
324.3
(5.3)
281.3

(22.8)
(7.0)
324.3
(8.7)
308.6

- 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.
The following amendments which are effective in the current accounting period andrelevant to the Group’s operations are adopted in 2016:
Amendments to IFRS 11

Accounting for Acquisitions of Interests in Joint
Operations
Amendments to IAS 1
Disclosure Initiative: Presentation of Financial
Statements
Amendments to IAS 16 and IAS 38 Clarification of Acceptable Methods of Depreciation
and Amortization
Annual Improvements to IFRSs
2012 – 2014 Cycle

Amendments to IFRS 11 ‘Joint Arrangements’ introduce new guidance on the accounting
for the acquisition of an interest in a joint operation that constitutes a business. Acquirersof such interests shall apply all of the principles on business combinations accounting in
IFRS 3 ‘Business Combinations’, and other IFRSs, that do not conflict with the guidance in
IFRS 11 and disclose the information that is required in those IFRSs in relation to businesscombinations.
Amendment to IAS 1 is part of the International Accounting Standards Board’s initiatives
to improve the effectiveness of disclosure in financial reporting. Amendments to IAS 1
clarify that companies shall apply professional judgments in determining what information
to disclose and how to structure it in the financial statements. The amendments include
narrow-focus improvements in the guidance on materiality, disaggregation and subtotals,
note structure, disclosure of accounting policies and presentation of items of othercomprehensive income arising from equity accounted investments.
Amendments to IAS 16 ‘Property, Plant and Equipment’ and IAS 38 ‘Intangible Assets’clarify that the use of revenue-based methods to calculate the depreciation or amortizationof an asset is not appropriate because revenue generated by an activity that includes the useof an asset generally reflects factors other than the consumption of the economic benefits
embodied in the asset. The amendments to IAS 38 further clarify that revenue is generally
presumed to be an inappropriate basis for measuring the consumption of the economic
benefits embodied in an intangible asset. This presumption however, can be rebutted incertain limited circumstances.
Annual Improvements to IFRSs 2012 – 2014 Cycle comprise a number of non-urgent but
necessary amendments.

- more -Page 11
1. ACCOUNTING POLICIES AND BASIS OF PREPARATION (CONTINUED)
There have been no changes to the accounting policies described in the 2015 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
2015
2016
US$m
US$m
By geographical area:
Hong Kong
Other Asia
EuropeThe Americas

109.3
51.8
87.3
39.8

114.7
48.3
97.6
34.6

288.2

295.2

3. EBITDA FROM SUBSIDIARIES (EARNINGS BEFORE INTEREST, TAX,
DEPRECIATION AND AMORTIZATION)
Six months ended 30th June
2015
2016
US$m
US$m
By geographical area:
Hong Kong
Other Asia
EuropeThe Americas

33.4
13.4
8.1
2.6

35.0
13.1
15.2
6.0

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

57.5

69.3

(1.8)

(0.5)

EBITDA from subsidiaries
Less depreciation and amortization

55.7(27.2)

68.8(26.2)

Operating profit

28.5

42.6

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

Six months ended
30th June 2016
By geographical area:
Other Asia
EuropeThe Americas
Non-trading items- acquisition-related
costs (note 7)

Six months ended
30th June 2015
By geographical area:
Other Asia
EuropeThe Americas
Non-trading items- acquisition-related
costs (note 7)

OperatingprofitUS$m

Net
financingcharges
US$m

Tax
US$m

Net
profit/(loss)
US$m

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

-

-

-

-

-

-

13.3

(5.5)

7.8

(1.8)

(1.0)

5.0

10.4
0.4
2.1

(3.8)
(1.3)

6.6
0.4
0.8

(0.7)
(1.0)

(1.3)
(0.1)
-

4.6
0.3
(0.2)

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

- more -Page 13
5. TAX
Six months ended 30th June
2015
2016
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

(6.8)
1.2

(7.4)
0.2

(5.6)

(7.2)

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

(4.2)
(0.5)
(2.6)
0.1

(5.6)

(7.2)

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

0.1

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 ventures of US$1.0 million (2015:
US$1.4 million) is included in share of results of associates and joint ventures (note 4).

- more -Page 14
6. EARNINGS PER SHARE
Basic earnings per share are calculated on the profit attributable to shareholders of
US$22.9 million (2015: US$32.4 million) and on the weighted average number of
1,255.9 million (2015: 1,142.4 million) shares in issue during the period.
Diluted earnings per share are calculated on profit attributable to shareholders of
US$22.9 million (2015: US$32.4 million) and on the weighted average number of
1,261.2 million (2015: 1,147.8 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
2015
2016
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

1,255.9

1,142.4

5.3

5.4

1,261.2

1,147.8

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
2015

2016

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¢

22.9

32.4

1.82

1.82

2.82

2.92

2.91

1.0

1.8

24.7

2.84

1.97

- more -

1.96

33.4

Page 15
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 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
2015
2016
US$m
US$m
Acquisition-related costs- administration expenses- share of results of associates and joint ventures

1.8
-

0.5
0.5

1.8

1.0

8. ACQUISITION OF MANDARIN ORIENTAL, BOSTON
On 27th April 2016, the Group completed its US$140 million acquisition of Mandarin
Oriental, Boston, a hotel that the Group has managed since its opening in 2008. The
consideration of US$140 million represented the fair values of the tangible assets acquiredat the acquisition date. There was no goodwill arising on acquisition.
9. ACQUISITION OF HOTEL RITZ, MADRIDIn May 2015, the Group acquired a 50% interest in the Hotel Ritz, Madrid for €65 million(US$73.3 million) in a joint venture with The Olayan Group, with Mandarin Oriental
managing the hotel under a long-term management agreement. The hotel is to undergo acomprehensive renovation in 2017, currently estimated to cost a total of some €90 million,of which the Group’s share will be €45 million (US$50 million).
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 and US$1.9 million (US$3.6 million
expenses in aggregate) in connection with the rights issue in the first half and the second
half of 2015, respectively.
The Group issued 1.0 million and 0.3 million new ordinary shares under the share-based
long-term incentive plans with proceeds of US$1.3 million and US$0.1 million(US$1.4 million proceeds in aggregate) in the first half and the second half of 2015,
respectively.
- more -Page 16
11. DIVIDENDS
Six months ended 30th June
2015
2016
US$m
US$m
Final dividend in respect of 2015 of US¢3.00(2014: US¢5.00) per share

37.7

50.2

An interim dividend in respect of 2016 of US¢1.50 (2015: US¢2.00) per share amounting to a
total of US$18.8 million (2015: US$25.1 million) has been declared by the Board and will be
accounted for as an appropriation of revenue reserves in the year ending 31st December 2016.
12. CAPITAL COMMITMENTS
Total capital commitments at 30th June 2016 and 31st December 2015 amounted to
US$341.1 million and US$321.4 million, respectively.
13. FINANCIAL INSTRUMENTS
Financial instruments by category
The fair values of financial assets and financial liabilities, together with carrying amounts at
30th June 2016 and 31st December 2015 are as follows:

30th June 2016
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

Total
carrying
amount
US$m

Fair
value
US$m

64.4

-

11.1
-

-

11.1
64.4

11.1
64.4

181.7

-

-

-

181.7

181.7

246.1

-

11.1

-

257.2

257.2

-

(1.7)
-

-

(485.3)(1.7)(485.3)(1.7)(485.3)

-

(1.2)

-

(117.9)(119.1)(119.1)

-

(2.9)

-

(603.2)(606.1)(606.1)- more -Page 17
13. FINANCIAL INSTRUMENTS (CONTINUED)
Financial instruments by category (continued)

31st December 2015
AssetsOther
investments
Debtors
Bank and cash
balances
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

61.2

-

10.2
-

-

10.2
61.2

10.2
61.2

308.6

-

-

-

308.6

308.6

369.8

-

10.2

-

380.0

380.0

-

(3.0)
-

-

(440.4)(3.0)(440.4)(3.0)(440.3)---(133.5)(133.5)(133.5)

-

(3.0)

-

(573.9)(576.9)(576.8)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 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.
- more -Page 18
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 theunderlying investments with certain degree of entity specific estimates.
There were no changes in valuation techniques during the six months ended 30th June
2016 and the year ended 31st December 2015.
The table below analyzes financial instruments carried at fair value at 30th June 2016
and 31st December 2015, 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 2016
AssetsAvailable-for-sale financial assets- unlisted investments

-

2.1

9.0

11.1

Liabilities
Derivative designated at fair value- through other comprehensive
income

-

(2.9)

-

(2.9)

31st December 2015
AssetsAvailable-for-sale financial assets- unlisted investments

-

2.1

8.1

10.2

Liabilities
Derivative designated at fair value- through other comprehensive
income

-

(3.0)

-

(3.0)

There were no transfers among the three categories during the six months ended
30th June 2016 and the year ended 31st December 2015.

- more -Page 19
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 2016 and the year ended 31st December 2015 are
as follows:
Availablefor-salefinancialassets
US$m
At 1st January 2016
Additions8.1
0.9

At 30th June 2016

9.0

At 1st January 2015
Additions

7.6
0.5

At 31st December 2015

8.1

(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.
14. 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$6.5 million(2015: US$6.4 million) received from the Group’s six (2015: 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 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:







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 2015, 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 Rules 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 21

The interim dividend of US¢1.50 per share will be payable on 12th October 2016 toshareholders on the register of members at the close of business on 19th August 2016. The
shares will be quoted ex-dividend on the Singapore Exchange and the London Stock
Exchange on 17th and 18th August 2016, respectively. The share registers will be closed
from 22nd to 26th August 2016, 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 2016 interim
dividend by notifying the United Kingdom transfer agent in writing by 23rd September
2016. The sterling equivalent of dividends declared in United States dollars will becalculated by reference to a rate prevailing on 28th September 2016.
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 19th August 2016, 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 18th August 2016.
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 29
hotels and eight residences in 19 countries and territories, with each property reflecting theGroup’s oriental heritage and unique sense of place. Mandarin Oriental has a strong pipeline of
hotels and residences under development, with the next hotel opening planned in Doha. The
Group has equity interests in a number of its properties and adjusted net assets worth
approximately US$3.6 billion as at 30th June 2016.
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
and long-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 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 22
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
Susan Ho

(852) 3512 5069

As permitted by the Disclosure Rules 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.