29th July 2021
The following announcement was issued today to a Regulatory Information Service approved by
the Financial Conduct Authority in the United Kingdom.
MANDARIN ORIENTAL INTERNATIONAL LIMITEDHALF-YEARLY RESULTS FOR THE SIX MONTHS ENDED 30TH JUNE 2021
HIGHLIGHTS⚫ Underlying losses reduced by 34% compared to the same period last year
⚫ Business levels increased in the second quarter⚫ Robust hotel development pipeline⚫ Strong liquidity and funding position“While trading conditions remain difficult, business volumes have begun to improve in markets
where vaccination programmes are being implemented effectively, particularly in the second
quarter, leading to a reduction in underlying losses. The Group’s development pipeline remains
robust, and the restored Mandarin Oriental Ritz, Madrid, opened to critical acclaim. A return toprofitability by the Group will be dependent on the removal of barriers to international travel,
particularly in Asia.”
Ben Keswick
ChairmanRESULTS

Combined total revenue of hotels under management(1)Revenue
Underlying EBITDA (Earnings before interest, tax,
depreciation and amortisation)(2)Underlying loss attributable to shareholders(3)Revaluation loss on investment property under development
Loss attributable to shareholders
Underlying loss per share(3)Loss 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
2021
2020
US$m
US$m
381.8
276.4
101.8
95.5
(17.0)(66.8)(89.1)(155.9)US¢(5.29)(12.34)
US$
2.63
3.95
18%
12%

(50.1)(101.8)(333.7)(435.5)US¢(8.06)(34.48)
US$
2.78
4.09
14%
10%

Change
%
+38
+7
+66
+34
+73
+64
%
+34
+64
%
–5
–3

(1) Combined revenue includes turnover of the Group’s subsidiary hotels in addition to 100% of revenue from associate, joint venture andmanaged 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 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.
(4) At 30th June 2021 and 31st December 2020, respectively.
(5) 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 2021 and 31st December 2020. The other freehold and leasehold interests are carried at amortised cost in the consolidated balance
sheet. Both the adjusted net asset value per share and net debt/adjusted shareholders’ funds for 30th June 2021 and 31st December 2020 haveincluded the market value of the Group’s freehold and leasehold interests which were appraised as at 31st December 2020.

- more -Page 2
MANDARIN ORIENTAL INTERNATIONAL LIMITEDHALF-YEARLY RESULTS FOR THE SIX MONTHS ENDED 30TH JUNE 2021

OVERVIEW
Operating conditions generally improved towards the end of the first half, with all hotels underoperation open in the second quarter. During the same period in the prior year, almost all
hotels were effectively closed. Performance did, however, vary by market, depending mostly
upon vaccination roll-out progress and the impact of government actions to curtail the spreadof the virus.

In most markets, the customer base was largely domestic and leisure-orientated.

Combined total revenue of hotels under management increased by 38% in the first half of 2021
compared to the equivalent period in 2020.
Government financial support in some markets and the Group’s ongoing cost containment
measures continued to benefit results.

FINANCIAL PERFORMANCE
Underlying losses before interest, tax, depreciation and amortisation (‘EBITDA’) for the firsthalf of 2021 were US$17 million, a 66% improvement compared to EBITDA losses of
US$50 million in the first half of 2020. Results benefited from an increase in business levels
in certain markets, continued cost control measures and government financial support.
The Group’s losses were entirely attributable to its portfolio of owned hotels.

Themanagement business was broadly breakeven in the period, due to increased management fees
and lower operating costs.

Underlying losses for the period were US$67 million, compared to US$102 million for the
first half of 2020.

Non-trading items comprised a 3%, or US$89 million, decrease in the valuation of the
Causeway Bay site under development as a result of market reductions in property values.
Total losses attributable to shareholders were US$156 million in the first half, compared to
US$436 million in the same period in 2020.

- more -Page 3
At 30th June 2021, net debt was US$590 million compared to US$506 million at the end of
2020, with the increase primarily due to investments made to develop the Causeway Bay site
and increase the size of the Munich hotel. The Group remains well funded, with headroom of
US$441 million in its available cash and committed facilities. The average tenor of theGroup’s debt facilities at 30th June 2021 was 2.6 years and gearing as a percentage of adjusted
shareholders’ funds was 12%, taking into account the market value of the Group’s properties.

No interim dividend will be paid in respect of 2021 first half results.

HOTEL PERFORMANCE
Occupancy levels varied significantly between hotels. In Asia, Mandarin Oriental, Hong
Kong delivered positive EBITDA in the first half of 2021, albeit still well below 2019 levels,
compared to a loss in the first half of 2020.
strong.

Demand in the Chinese mainland remained

Trading conditions in Southeast Asia were exceedingly difficult, with borders

remaining effectively closed and tight lockdown restrictions in some cities preventing foodand beverage and spa facilities from operating. In much of Europe, the Middle East andAmerica, COVID-19 restrictions slowly eased, allowing occupancy levels to start to recover.

NEW DEVELOPMENTS
Mandarin Oriental Ritz, Madrid opened in April after an extensive restoration and is expected
to become a flagship property for the brand.

The Group also assumed management of the Al Faisaliah hotel in Riyadh with effect fromMarch and this property will be rebranded as Mandarin Oriental Al Faisaliah, Riyadh in 2022
following its renovation. Two new management contracts were announced in the first half ofthe year: a resort on the beach in Da Nang, Vietnam and a city property in Hangzhou, China.
Mandarin Oriental Bosphorus, Istanbul will open in August 2021 and Mandarin Oriental,
Shenzhen is expected to open towards the end of the year.

PEOPLEThe last six months have continued to be a difficult period for the hospitality industry and I
would like to thank all Mandarin Oriental colleagues for their continued dedication andloyalty.

- more -Page 4James Watkins retired from the Board following today’s Board meeting.

On 20th May 2021,

it was announced that Craig Beattie would step down from the Board on 31st August 2021.
The Board would like to record its gratitude to both of them for their significant contribution
to the Group. As announced on 20th May 2021, Matthew Bishop will be appointed as a
Director and Chief Financial Officer of the Company with effect from 1st September 2021.

OUTLOOK
While trading conditions remain difficult, business volumes have begun to improve in markets
where vaccination programmes are being implemented effectively, particularly in the second
quarter, leading to a reduction in underlying losses.

The Group’s development pipeline

remains robust, and the restored Mandarin Oriental Ritz, Madrid, opened to critical acclaim.
A return to profitability by the Group will be dependent on the removal of barriers tointernational travel, particularly in Asia.

Ben Keswick
Chairman- more -Page 5Mandarin Oriental International Limited
Consolidated Profit and Loss Account(unaudited)
Six months ended 30th June
2021

2020
Total
US$m

Underlying
business
performance
US$m

Non-trading
Items
US$m

Total
US$m

-

101.8
(114.7)(12.9)(9.8)(44.8)

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

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

183.7(233.0)(49.3)(31.4)(97.5)-

183.7(233.0)(49.3)(31.4)(97.5)

22.1

-

22.1

14.4

-

14.4

(7.6)

0.7

(6.9)

Operating loss (note 3)(45.4)(89.1)(89.1)(89.1)(134.5)(81.1)(333.7)(333.7)(333.7)(414.8)(185.8)(474.9)(474.2)(474.9)(660.0)Financing charges
Interest income

(6.9)
0.5

-

(6.9)
0.5

(8.0)
1.1

-

(8.0)
1.1

(14.2)
1.6-(14.2)
1.6

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

(6.4)

-

(6.4)

(6.9)

-

(6.9)

(12.6)-(12.6)(15.0)(66.8)(66.8)(89.1)(89.1)(15.0)(155.9)(155.9)(13.5)(101.5)(0.3)(101.8)(333.7)(333.7)(13.5)(435.2)(0.3)(435.5)(26.8)(225.2)19.4(205.8)(474.2)(474.2)(26.8)(699.4)19.4(680.0)(66.8)(66.8)(89.1)(89.1)(155.9)(155.9)(101.8)(101.8)(333.7)(333.7)(435.5)(435.5)(205.9)0.1(205.8)(474.2)(474.2)(680.1)0.1(680.0)

US¢

US¢

US¢

US¢

US¢

US¢

(5.29)(5.29)(12.34)(12.34)(8.06)(8.06)(34.48)(34.48)(16.30)(16.30)(53.84)(53.84)

Revenue (note 2)
Cost of sales
Gross loss
Selling and distribution costs
Administration expenses
Other operating
income/(expense)
Change in fair value ofinvestment property underdevelopment

Loss before tax
Tax (note 5)
Loss after tax
Attributable to:Shareholders of the Company(note 6 & 7)
Non-controlling interests

Loss per share (note 6)- basic- diluted

Underlying
business
performance
US$m

Non-trading
Items
US$m

101.8
(114.7)(12.9)(9.8)(44.8)

Year ended 31st December
2020
Underlying
business
Non-trading
performance
Items
US$m
US$m

- more -

Total
US$m

Page 6

Mandarin Oriental International Limited
Consolidated Statement of Comprehensive Income(unaudited)
Six months ended
30th June
2021
2020
US$m
US$m
Loss for the period
Other comprehensive income/(expense)

Year ended
31st
December
2020
US$m(155.9)(435.5)(680.0)

-

-

5.2
(0.9)

-

-

4.3

(25.7)

1.3

80.0

2.7
(0.5)

(9.9)
1.6

(11.4)
1.9

(1.9)

(4.1)

1.8

(25.4)(11.1)

72.3

Other comprehensive (expense)/income for theperiod, net of tax(25.4)(11.1)

76.6

Total comprehensive expense for the period(181.3)(446.6)(603.4)Attributable to:Shareholders of the Company
Non-controlling interests(181.1)(0.2)(446.5)(0.1)(603.9)0.5(181.3)(446.6)(603.4)

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 (losses)/gains arising during the period
Cash flow hedges- net gains/(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 7

Mandarin Oriental International Limited
Consolidated Balance Sheet(unaudited)
At 30th June
2021
2020
US$m
US$m

At 31stDecember
2020
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

44.0
1,147.2283.6
2,447.1
216.3
15.5
17.7
5.0
4.8

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

45.4
1,181.5
297.4
2,528.3
231.6
16.1
17.8
5.5
5.1

Non-current assets

4,181.2

4,393.9

4,328.7

StocksCurrent debtors
Current tax assets
Bank and cash balances

5.5
99.2
3.0
137.7

5.9
62.3
2.2
187.1

6.0
71.7
3.1
164.6

Current assets

245.4

257.5

245.4

Current creditors
Current borrowings
Current lease liabilities
Current tax liabilities(138.7)
(2.6)
(6.7)
(9.5)

(130.1)(41.9)(7.0)(11.7)(144.6)(64.2)(7.0)(10.1)

Current liabilities(157.5)(190.7)(225.9)Net current assets
Long-term borrowings
Non-current lease liabilities
Deferred tax liabilities
Pension liabilities
Non-current creditors

87.9(725.1)(156.7)(47.7)
(0.3)
(7.4)

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

19.5(606.6)(170.1)(47.1)(0.3)(10.9)

3,331.9

3,670.0

3,513.2

Total equity
Share capital
Share premium
Revenue and other reserves

63.2
499.9
2,765.3

63.2
499.7
3,103.9

63.2
499.7
2,946.6

Shareholders’ funds
Non-controlling interests

3,328.4
3.5

3,666.8
3.2

3,509.5
3.7

3,331.9

3,670.0

3,513.2- more -Page 8Mandarin Oriental International Limited
Consolidated Statement of Changes in Equity
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

At 30th June 2021

63.2
63.2

499.7
0.2
499.9

260.3
(0.5)
259.8

(240.3)(155.9)0.3(395.9)2,943.4
2,943.4

(9.7)
2.1
(7.6)

(7.1)
(27.3)(34.4)

3,509.5(181.1)
3,328.4

3.7
(0.2)
3.5

3,513.2(181.3)3,331.9

Six months ended 30th June 2020 (unaudited)
At 1st January 2020
Total comprehensive income
Change in interest in a subsidiary
At 30th June 2020

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

63.2
63.2

499.7
499.7

260.3
260.3

434.8
(675.5)0.4(240.3)

2,943.4
2,943.4

(9.7)
(9.7)

(88.4)
81.3(7.1)

4,113.0(603.9)0.4
3,509.5

3.6
0.5
(0.4)
3.7

4,116.6(603.4)
3,513.2

Six months ended 30th June 2021 (unaudited)
At 1st January 2021
Total comprehensive income
TransferYear ended 31st December 2020
At 1st January 2020
Total comprehensive income
Change in interest in a subsidiary
At 31st December 2020

Hedging
reserves
US$m

Total
equityUS$mRevenue reserves as at 30th June 2021 included cumulative fair value loss on the investment property under development of US$631.3 million (US$401.0 million as at
30th June 2020 and US$542.2 million as at 31st December 2020).
__________________________________________________________________________________________________________________________________________- more -Page 9Mandarin Oriental International Limited
Consolidated Cash Flow Statement(unaudited)
Six months ended
30th June
2021
2020
US$m
US$m

Year ended
31st
December
2020
US$m

Operating activities
Operating loss
Depreciation, amortisation and impairment
Other non-cash items
Movements in working capitalInterest received
Interest and other financing charges paid
Tax paid(134.5)
35.4
88.1
(4.3)
0.3
(6.9)
(0.6)

(414.8)
37.4
335.6
(0.9)
1.3
(8.1)
(8.3)

(660.0)
124.2
472.8
1.4
1.8
(14.1)(9.6)

Cash flows from operating activities(22.5)(57.8)(83.5)

Investing activities
Purchase of tangible assets
Additions to investment property under development
Purchase of intangible assets
Payment on Munich expansion
Purchase of other investments
Purchase of an associate
Advance to associates and joint ventures
Repayment of loans to associates and joint ventures(10.0)(11.8)(0.8)(28.6)
(0.2)
(7.0)
0.5

(14.3)(11.1)(3.2)(0.4)(23.1)
0.4(38.9)(21.6)
(5.3)
(0.6)
(2.0)
(40.5)
0.4

Cash flows from investing activities(57.9)(51.7)(108.5)

Financing activities
Drawdown of borrowings
Repayment of borrowings
Principal elements of lease payments

117.8(61.3)
(1.3)

32.4
(3.6)

88.4
(0.1)
(6.0)

Cash flows from financing activities

55.2

28.8

82.3

Net decrease in cash and cash equivalents
Cash and cash equivalents at beginning of period
Effect of exchange rate changes(25.2)
164.6(1.7)(80.7)
270.7(2.9)(109.7)
270.7
3.6

Cash and cash equivalents at end of period

137.7

187.1

164.6

- more -Page 10

Mandarin Oriental International Limited
Notes to Condensed Financial Statements
1. ACCOUNTING POLICIES AND BASIS OF PREPARATION(a) Going Concern
The Group’s operations and financial performance were severely impacted by theunprecedented decline in both international and domestic travel since the COVID-19
pandemic began. Prior to the pandemic the Group had significant headroom in its
committed debt facilities and cash balances available to finance operating losses,
which was increased with new debt facilities in February 2021.
Operating conditions generally improved towards the end of the first half of 2021,
with all 34 hotels open in the second quarter. In the first half of 2021, the Group
incurred total cash outflow from operating activities of US$23 million, a significant
improvement from the same period in 2020.
A return of profitability by the Group will be dependent on the continued successfulroll-out of vaccination programmes and removal of barriers to travel.
The Group’s balance sheet is underpinned by equity interests in a number of prime
hotel properties which are carried on the Group’s balance sheet at historical cost lessdepreciation. Taking into account the market value of the Group’s property interests,
the adjusted shareholders’ funds were US$5.0 billion at 30th June 2021.
At 30th June 2021, the Group had total liquidity of US$441 million, comprising
US$303 million of undrawn committed facilities and US$138 million of cash balances.
The Group’s facilities are not subject to any cash flow covenants and had an averageremaining tenor of 2.6 years. This robust liquidity position enables the Group tosustain a prolonged downturn in the hospitality industry should that eventuate as wellas meet its capital commitments. Overall, the Group’s balance sheet position remains
strong.
In adopting the going concern basis for preparing the condensed financial statements,
the Directors have considered a stress-test cash flow forecast which assumes the
majority of the Group’s hotels are closed as a consequence of government restrictions
for a period of 12 months from the date of approval of the condensed financial
statements.
Having considered the outcome of the stress-test cash flow forecast, the Directors areof the opinion that the Group has sufficient financial resources to continue operating
for a period of at least 12 months from the date of approval of the condensed financial
statements. Accordingly, the condensed financial statements have been prepared ona going concern basis.

- more -Page 11
1. ACCOUNTING POLICIES AND BASIS OF PREPARATION (CONTINUED)(b) Basis of preparation
The 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.
There are no changes to the accounting policies as described in the 2020 annual
financial statements and the Group has not early adopted any standard or amendmentsthat have been issued but not yet effective, except as mentioned below:
Interest Rate Benchmark Reform – Phase 2: Amendment to IFRS 9, IAS 39, IFRS 7,
IFRS 4 and IFRS 16 (effective 1st January 2021)
The amendments provide practical expedient from certain requirements under the
IFRSs as a result of the reform which affect the measurement of financial assets,financial liabilities and lease liabilities, and a number of reliefs for hedging
relationships. The Group applied the amendments from 1st January 2021 and there isno significant impact on the Group’s consolidated financial statements.
COVID-19 Related Rent Concessions beyond 30th June 2021: Amendment to
IFRS 16 Leases (effective 1st April 2021)
The Group adopted and applied the practical expedient of the COVID-19 Related Rent
Concessions: Amendment to IFRS 16 Leases, published in June 2020 (‘2020
amendment’), in the 2020 annual financial statements. The 2021 amendment extends
the practical expedient in the 2020 amendment to eligible lease payments due on or
before 30th June 2022. By using the 2021 amendment, the Group continues to apply
the practical expedient consistently to all lease contracts with similar characteristics
and in similar circumstances, and does not assess these concessions as leasemodifications.

- more -Page 12
2. REVENUE
Six months ended 30th June
2021
2020
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

54.1
33.9
13.8

43.7
37.2
14.6

101.8

95.5

37.4
54.6
92.0

37.8
49.7
87.5

9.8

8.0

101.8

95.5

3. EBITDA FROM SUBSIDIARIES (EARNINGS BEFORE INTEREST, TAX,
DEPRECIATION AND AMORTISATION)
Six months ended 30th June
2021
2020
US$m
US$m
By geographical area:
Asia
EMEA
America

(7.0)
5.9
(8.9)

(15.5)(10.0)(18.2)

Underlying EBITDA from subsidiaries(10.0)(43.7)

Non-trading items (note 7)
Change in fair value of investment property
under development(89.1)(333.7)(99.1)(377.4)(35.4)(134.5)(37.4)(414.8)

EBITDA from subsidiaries
Underlying depreciation and amortisation fromsubsidiaries
Operating loss

For the six months ended 30th June 2021, the Group had received government grants of
US$18.1 million (2020: US$10.1 million). In addition, there were rent concessions of
US$2.1 million (2020: US$0.8 million). Both amounts were in relation to the COVID-19
pandemic. These subsidies were accounted for as other operating income.

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

Six months ended
30th June 2021
By geographical area:
Asia
EMEA
America

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

Operating
loss
US$m

Net
financingcharges
US$m

Tax
US$m

Net
loss
US$m

(3.0)
(3.5)
(0.5)

(5.2)
(1.2)
(1.2)

(8.2)
(4.7)
(1.7)

(0.9)
(0.2)
(0.8)

1.5
-

(7.6)
(4.9)
(2.5)

(7.0)

(7.6)

(14.6)(1.9)

1.5(15.0)

(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)For the six months ended 30th June 2021, the results of associates and joint ventures
included the Group’s share of government grants of US$0.7 million (2020: US$1.6 million).
In addition, there were rent concessions of US$0.1 million (2020: US$0.1 million). Bothamounts were in relation to the COVID-19 pandemic.
5. TAX
Six months ended 30th June
2021
2020
US$m
US$m
Tax (charged)/credited to profit and loss is analysed as follows:
Current tax
Deferred tax

By geographical area:
Asia
EMEA

(0.1)
0.1

(0.6)
0.3

-

(0.3)

(0.3)
0.3

(0.6)
0.3

-

(0.3)

Tax charge relating to cash flow hedges of US$0.5 million (2020: tax credit of
US$1.6 million) is included in other comprehensive income or expense.

- more -Page 14
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$1.5 million (2020: US$0.9 million)
is included in share of results of associates and joint ventures (note 4).
6. LOSS PER SHARE
Basic loss per share is calculated on loss attributable to shareholders of US$155.9 million(2020: US$435.5 million) and on the weighted average number of 1,263.2 million(2020: 1,263.2 million) shares in issue during the period.
Diluted loss per share is calculated on loss attributable to shareholders of
US$155.9 million (2020: US$435.5 million) and on the weighted average number of
1,263.6 million (2020: 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
2021
2020
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

1,263.2

0.4-

1,263.6

1,263.2

Additional basic and diluted loss per share are also calculated based on underlying loss
attributable to shareholders. A reconciliation of losses is set out below:
Six months ended 30th June
2021

Loss attributable toshareholders
Non-trading items(note 7)
Underlying loss
attributable toshareholders

2020

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

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

(155.9)(435.5)(12.34)(12.34)89.1(66.8)(34.48)(34.48)(8.06)(8.06)

333.7(5.29)- more -(5.29)(101.8)

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 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
2021
2020
US$m
US$m
Change in fair value of investment property
under development (note 8)(89.1)(333.7)

8. INVESTMENT PROPERTY UNDER DEVELOPMENT
Year ended
Six months ended
31st
30th June December
2020
2021
2020
US$m
US$m
US$m
Fair value at beginning of period
Exchange differences
Additions
Decrease in fair value

2,528.3(3.9)
11.8(89.1)

2,967.7
12.8
11.1(333.7)

2,967.7
12.1
23.4(474.9)Fair value at end of period

2,447.1

2,657.9

2,528.3

9. DIVIDENDS
No interim dividend in respect of the six months ended 30th June 2021 has been declaredby the Board (2020: nil).
10. CAPITAL COMMITMENTS
Total capital commitments at 30th June 2021 and 31st December 2020 amounted to
US$700.0 million and US$728.7 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 2021 and 31st December 2020 are as follows:
Fair value ofhedging
instruments
US$m

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

Other
financialliabilities
US$m

Total
carrying
amount
US$m

Fair
value
US$m

30th June 2021
Financial assets
measured at fair value
Other investments

-

15.5

-

-

15.5

15.5

Financial assets notmeasured at fair value
Debtors
Bank and cash balances

-

-

89.9
137.7

-

89.9
137.7

89.9
137.7

-

-

227.6

-

227.6

227.6

(8.2)

-

-

-

(8.2)

(8.2)

-

-

-

(727.7)(163.4)(727.7)(163.4)(727.7)(163.4)---(115.5)(115.5)(115.5)---(1,006.6)(1,006.6)(1,006.6)

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

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

Other
financialliabilities
US$m

Total
carrying
amount
US$m

Fair
value
US$m

31st December 2020
Financial assets
measured at fair value
Other investments

-

16.1

-

-

16.1

16.1

Financial assets notmeasured at fair value
Debtors
Bank and cash balances

-

-

60.5
164.6

-

60.5
164.6

60.5
164.6

-

-

225.1

-

225.1

225.1

(10.9)---(10.9)(10.9)---(670.8)(177.1)(670.8)(177.1)(670.8)(177.1)---(107.7)(107.7)(107.7)---(955.6)(955.6)(955.6)

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 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 2021
and the year ended 31st December 2020.
The table below analyses financial instruments carried at fair value at 30th June 2021 and31st December 2020, by the levels in the fair value measurement hierarchy:
Observable
marketcurrenttransactions
US$m

Unobservable
inputs
US$m

Total
US$m

30th June 2021
AssetsOther investments

5.4

10.1

15.5

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

(8.2)

-

(8.2)

31st December 2020
AssetsOther investments

5.4

10.7

16.1

(10.9)-(10.9)

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 2021
and the year ended 31st December 2020.

- 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 2021 and the year ended 31st December 2020are as follows:
Unlisted
investments
US$m
At 1st January 2021
Additions
Disposals

10.7
0.2
(0.8)

At 30th June 2021

10.1

At 1st January 2020
Additions
Disposals

11.3
0.6
(1.2)

At 31st December 2020

10.7(ii) Financial instruments that are not measured at fair value
The fair values of current debtors, bank and cash balances, current creditors, current
borrowings and current lease liabilities 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. The fair valuesof non-current lease liabilities are estimated using the expected future payments
discounted at market interest rates.
12. RELATED PARTY TRANSACTIONSJardine Strategic Limited (‘JSL’) became the parent company of the Group following thecompletion of the simplification of the Group’s parent company structure in April 2021.
Jardine Strategic Holdings Limited and JMH Bermuda Limited, a wholly-owned subsidiaryof the Group’s ultimate parent company, Jardine Matheson Holdings Limited (‘JMH’),amalgamated under the Bermuda Companies Act to form JSL, a wholly-owned subsidiaryof JMH. Both JMH and JSL are incorporated in Bermuda.
In the normal course of business, the Group undertakes a variety of transactions with its
associates and joint ventures and with JMH’s subsidiaries, associates and joint ventures.
The more significant of these transactions during the six months ended 30th June 2021 aredescribed below:
The Group managed six (2020: six) associate and joint venture hotels and received
management fees of US$2.6 million (2020: US$2.7 million) based on long-term
management agreements on normal commercial terms.
- more -Page 20
12. RELATED PARTY TRANSACTIONS (CONTINUED)The Group provided hotel management services to Hongkong Land (‘HKL’), a subsidiaryof JMH. Total management fees received from HKL amounted to US$0.6 million(2020: US$0.5 million), based on long-term management agreements on normal
commercial terms.
In respect of the Causeway Bay site under development, the Group paid consultancy feesof US$0.4 million (2020: US$0.6 million) to HKL in consideration for project management
consultancy services. In addition, Gammon Construction Limited (‘GCL’), an associate of
JMH, completed value of works of US$9.8 million (2020: US$11.1 million). The HKL
agreement and GCL contract were arranged 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 21

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

For greater detail, please refer to pages 123 and 124 of the Company’s 2020 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 will be paid inrespect of the six months ended 30th June 2021.

- more -Page 22

About Mandarin Oriental Hotel Group
Mandarin Oriental Hotel Group is an international hotel investment and management groupwith luxury hotels, resorts and residences in sought-after destinations around the world.
Having grown from its Asian roots over 50 years ago into a global brand, the Group now
operates 34 hotels and seven residences in 24 countries and territories, with each property
reflecting the Group’s oriental heritage and unique sense of place. Mandarin Oriental regularly
receives international recognition and awards for outstanding service and quality management,
and has a strong pipeline of hotels and residences under development. The Group has equity
interests in a number of its properties and adjusted net assets worth approximately
US$5.0 billion as at 30th June 2021.
Mandarin Oriental continues to drive its reputation as an innovative leader in luxury hospitality,
seeking selective opportunities to expand the reach of the brand, with the aim to maximise
profitability and long-term shareholder value.
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
Shevaun Leach(852) 2895 9288
(852) 2895 9167

Brunswick Group Limited
Sunitha Chalam(852) 3512 5050

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.