Last checked at 6 Aug 2009 10:07
| To: Business Editor | 6th August 2009 |
| For immediate release |
The following announcement was issued today to a Regulatory Information Service approved by the Financial Services Authority in the United Kingdom.
MANDARIN ORIENTAL INTERNATIONAL LIMITED
HALF-YEARLY RESULTS FOR THE SIX MONTHS ENDED 30TH JUNE 2009
Highlights
| • | Significant market weakness |
| • | US$78.5 million gain recorded on sale of Macau hotel |
| • | Strong financial position |
"It is expected that market conditions will remain poor for the remainder of the year. Mandarin Oriental is, however, in a strong competitive and financial position and should benefit over the longer term from the strength of its brand and the limited new supply of luxury hotels in its key markets."
Simon Keswick, Chairman
6th August 2009
Results
| | (unaudited) | | |
| Six months ended 30th June | | ||
| | 2009 | 2008 | Change |
| | US$m | US$m | % |
| Combined total revenue of hotels under management(1) | 389.7 | 520.2 | -25 |
| Earnings before interest, tax, depreciation and amortization | 34.5 | 86.2 | -60 |
| Underlying profit attributable to shareholders(2) | 1.1 | 36.1 | -97 |
| Profit attributable to shareholders | 74.2 | 36.1 | +106 |
| | US¢ | US¢ | % |
| Underlying earnings per share(2) | 0.11 | 3.68 | -97 |
| Earnings per share | 7.53 | 3.68 | +105 |
| Interim dividend per share | 2.00 | 2.00 | - |
| | US$ | US$ | % |
| Net asset value per share | 1.08 | 1.17 | -8 |
| Net asset value per share with leasehold properties valuation(3) | 2.11 | 2.32 | -9 |
| Net debt/shareholders’ funds | 11% | 17% | |
| Net debt/adjusted shareholders’ funds(3) | 6% | 9% | |
| (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) Underlying profit attributable to shareholders and underlying earnings per share exclude non-trading items. These are gains on disposals and provision against asset impairment. | |||
| (3) These calculations have been presented after adjusting for the market value of the Group’s leasehold interests. International Financial Reporting Standards (‘IFRS’) do not permit leasehold interests of owner-occupied land to be carried at valuation. The Group considers that the IFRS treatment does not reflect the economic substance of its underlying property investments. Therefore, the Group has presented the net asset value per share and net debt/shareholders’ funds taking into account the fair market value of leasehold interests as supplementary financial information in addition to the net asset value per share and net debt/shareholders’ funds based on IFRS measures. | |||
The interim dividend of US¢2.00 per share will be payable on 21st October 2009 to shareholders on the register of members at the close of business on 28th August 2009. The ex-dividend date will be on 26th August 2009, and the share registers will be closed from 31st August to 4th September 2009, inclusive.
MANDARIN ORIENTAL INTERNATIONAL LIMITED
HALF-YEARLY RESULTS FOR THE SIX MONTHS ENDED 30TH JUNE 2009
OVERVIEW
Mandarin Oriental's underlying results were significantly affected by the depressed demand resulting from the global economic downturn, while H1N1 influenza also had a negative impact on the travel market. The Group has responded by taking action to manage its costs, while at the same time maintaining its high service standards. During the period, the Group benefited from a gain on the sale of the Macau hotel.
PERFORMANCE
In the face of very difficult markets, Mandarin Oriental achieved earnings before interest, tax, depreciation and amortization for the first six months of 2009 of US$35 million, compared to US$86 million in the first half of 2008. The Company's underlying profit for the period was US$1 million, compared with US$36 million in 2008. Underlying earnings per share were US¢0.11, compared to US¢3.68 in 2008.
Including non-trading items, principally a US$78 million gain on the sale of the Group's 50% interest in its Macau hotel offset by a provision of US$5 million against asset impairment, the profit attributable to shareholders for the six months was US$74 million, compared with US$36 million in 2008. With the inclusion of non-trading items, the earnings per share were US¢7.53 compared with US¢3.68 for the first half of 2008.
An unchanged interim dividend of US¢2.00 per share has been declared.
GROUP REVIEW
Occupancy levels for most of the Group's hotels were substantially below those achieved in the same period last year due to declining travel levels worldwide. Average room rates have also been negatively affected, particularly in Asia.
Subsidiaries
The Group's 100%-owned Hong Kong hotels have both suffered from a significant decrease in occupancy, which led to deterioration in average room rates. The Tokyo hotel, which operates under a long-term lease, was also impacted by lower occupancy levels, as was the property in Manila. In Jakarta, the hotel remained closed throughout the period for extensive renovations, and will reopen in October of this year.
While results in Europe were also down, the region was less affected by the economic conditions. Demand for leisure travel, particularly in London, remained relatively resilient. Average rates in US dollar terms, however, were eroded by weaker currencies. In The Americas, the Group's subsidiary hotel in Washington D.C. maintained its results, but management fees from other hotels fell in response to declining revenues.
Associates and Joint Venture
The share of results of associates declined significantly due to widespread market weakness and the exclusion of the operating results for Macau which were accounted for in the gain on sale.
The average room rate was maintained in Bangkok, but occupancy levels were badly affected by the country's political uncertainties. In Singapore, occupancy weakened and average room rates suffered from competitive pressures. The Kuala Lumpur hotel also saw demand weaken significantly. Similarly, both New York and Miami suffered from falling occupancy and lower average rates.
DEVELOPMENTS
Mandarin Oriental currently operates 23 hotels and has a further 18 under development. These represent approximately 10,000 rooms in 25 countries, with 17 hotels in Asia, 14 in The Americas and ten in Europe and North Africa. In addition, the Group operates, or has under development, 13 Residences at Mandarin Oriental connected to the Group's properties.
Over the next six months, new Mandarin Oriental hotels are due to open in Barcelona, Marrakech and Las Vegas. The Group continues to liaise with the developers on the timing of the 15 other hotels under development, all of which, except Paris, are management contracts.
PEOPLE
Jonathan Gould retired from the Board at the end of June 2009, and was succeeded by Giles White on 1st July 2009.
OUTLOOK
It is expected that market conditions will remain poor for the remainder of the year. Mandarin Oriental is, however, in a strong competitive and financial position and should benefit over the longer term from the strength of its brand and the limited new supply of luxury hotels in its key markets.
Simon Keswick
Chairman
6th August 2009
| Mandarin Oriental International Limited | |||||||||||||||||
| Consolidated Profit and Loss Account | |||||||||||||||||
| (unaudited) | |||||||||||||||||
| Six months ended 30th June | Year ended 31st December | ||||||||||||||||
| 2009 | 2008 | 2008 | |||||||||||||||
| Non-trading | Non-trading | Non-trading | |||||||||||||||
| Underlying | items | Total | Underlying | items | Total | Underlying | items | Total | |||||||||
| US$m | US$m | US$m | US$m | US$m | US$m | US$m | US$m | US$m | |||||||||
| Revenue (note 2) | 205.2 | - | 205.2 | 266.6 | - | 266.6 | 530.0 | - | 530.0 | ||||||||
| Cost of sales | (142.3) | - | (142.3) | (162.8) | - | (162.8) | (324.5) | - | (324.5) | ||||||||
| Gross profit | 62.9 | - | 62.9 | 103.8 | - | 103.8 | 205.5 | - | 205.5 | ||||||||
| Selling and distribution costs | (15.7) | - | (15.7) | (17.2) | - | (17.2) | (36.6) | - | (36.6) | ||||||||
| Administration expenses | (34.2) | - | (34.2) | (42.3) | - | (42.3) | (82.7) | - | (82.7) | ||||||||
|
|
| ||||||||||||||||
| Operating profit (note 3) | 13.0 | - | 13.0 | 44.3 | - | 44.3 | 86.2 | - | 86.2 | ||||||||
| Financing charges | (10.0) | - | (10.0) | (15.0) | - | (15.0) | (29.4) | - | (29.4) | ||||||||
| Interest income | 2.0 | - | 2.0 | 6.5 | - | 6.5 | 12.4 | - | 12.4 | ||||||||
| Net financing charges | (8.0) | - | (8.0) | (8.5) | - | (8.5) | (17.0) | - | (17.0) | ||||||||
| Share of results of associates and joint venture (note 4) | (1.1) | (5.4) | (6.5) | 8.8 | - | 8.8 | 15.3 | - | 15.3 | ||||||||
| Gain on disposal of joint venture (note 5) | - | 78.5 | 78.5 | - | - | - | - | - | - | ||||||||
| Profit before tax | 3.9 | 73.1 | 77.0 | 44.6 | - | 44.6 | 84.5 | - | 84.5 | ||||||||
| Tax (note 6) | (2.8) | - | (2.8) | (8.9) | - | (8.9) | (18.3) | - | (18.3) | ||||||||
|
|
|
|
|
|
|
|
|
| |||||||||
| Profit after tax | 1.1 | 73.1 | 74.2 | 35.7 | - | 35.7 | 66.2 | - | 66.2 | ||||||||
|
|
|
|
|
|
|
|
|
| |||||||||
| Attributable to: | |||||||||||||||||
| Shareholders of the Company | 1.1 | 73.1 | 74.2 | 36.1 | - | 36.1 | 67.1 | - | 67.1 | ||||||||
| Minority interests | - | - | - | (0.4) | - | (0.4) | (0.9) | - | (0.9) | ||||||||
|
|
|
|
|
|
|
|
|
| |||||||||
| 1.1 | 73.1 | 74.2 | 35.7 | - | 35.7 | 66.2 | - | 66.2 | |||||||||
|
|
|
|
|
|
|
|
|
| |||||||||
| US¢ | US¢ | US¢ | |||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Earnings per share (note 7) | |||||||||||||||||
| - basic | 7.53 | 3.68 | 6.84 | ||||||||||||||
| - diluted | 7.50 | 3.64 | 6.79 | ||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||||||
| Mandarin Oriental International Limited | ||||||||||||||||||||||
| Consolidated Statement of Comprehensive Income | ||||||||||||||||||||||
| (unaudited) | Year ended | |||||||||||||||||||||
| Six months ended | 31st | |||||||||||||||||||||
| 30th June | December | |||||||||||||||||||||
| 2009 | 2008 | 2008 | ||||||||||||||||||||
| US$m | US$m | US$m | ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
| ||||||||||||
| Profit for the period | 74.2 | 35.7 | 66.2 | |||||||||||||||||||
| Other comprehensive income | ||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
| ||||||||||||||
| Revaluation of properties |
| - |
|
| - |
|
| (50.3) |
| |||||||||||||
| Revaluation of other investments |
| - |
|
| - |
|
| 0.2 |
| |||||||||||||
| Actuarial losses on employee benefit plans |
| - |
|
| - |
|
| (27.6) |
| |||||||||||||
| Net exchange translation differences |
|
|
|
|
|
| ||||||||||||||||
|
|
|
|
|
|
|
|
|
| ||||||||||||||
| - gains/(losses) arising during the period |
| 21.7 |
|
| 9.3 |
|
| (63.7) |
| |||||||||||||
| - transfer to profit and loss |
| - |
|
| (0.7) |
|
| (0.7) |
| |||||||||||||
|
|
|
|
|
|
|
|
|
| ||||||||||||||
|
|
|
|
|
|
| |||||||||||||||||
|
| 21.7 |
|
| 8.6 |
|
| (64.4) |
| ||||||||||||||
| Fair value gains/(losses) on cash flow hedges |
| 6.8 |
|
| 2.2 |
|
| (18.0) |
| |||||||||||||
| Share of other comprehensive income of associates |
|
|
|
|
|
| ||||||||||||||||
| and joint venture |
| 0.9 |
|
| (3.6) |
|
| (21.5) |
| |||||||||||||
| Tax relating to components of other comprehensive |
|
|
|
|
|
| ||||||||||||||||
| income |
| (1.3) |
|
| (0.6) |
|
| 24.7 |
| |||||||||||||
|
|
|
|
|
|
|
|
|
| ||||||||||||||
| Other comprehensive income for the period | 28.1 | 6.6 | (156.9) | |||||||||||||||||||
|
|
|
| ||||||||||||||||||||
|
| ||||||||||||||||||||||
| Total comprehensive income for the period | 102.3 | 42.3 | (90.7) | |||||||||||||||||||
|
|
|
| ||||||||||||||||||||
| Attributable to: | ||||||||||||||||||||||
| Shareholders of the Company | 102.6 | 42.5 | (87.2) | |||||||||||||||||||
| Minority interests | (0.3) | (0.2) | (3.5) | |||||||||||||||||||
|
|
|
| ||||||||||||||||||||
| 102.3 | 42.3 | (90.7) | ||||||||||||||||||||
|
|
|
| ||||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
| ||
| Mandarin Oriental International Limited | |||||||||||
| Consolidated Balance Sheet
| |||||||||||
| Restated | |||||||||||
| (unaudited) | At 31st | ||||||||||
| At 30th June | December | ||||||||||
| 2009 | 2008 | 2008 | |||||||||
| US$m | US$m | US$m | |||||||||
|
|
|
|
|
|
|
|
|
|
| ||
| Net assets | |||||||||||
| Intangible assets | 232.3 |
| 223.7 | 232.3 | |||||||
| Tangible assets | 897.0 | 1,017.5 | 860.8 | ||||||||
| Associates and joint venture | 135.3 | 178.0 | 155.5 | ||||||||
| Other investments | 4.1 | 3.2 | 3.9 | ||||||||
| Loans receivable | 4.8 | 5.0 | 4.8 | ||||||||
| Pension assets | 6.3 | 33.6 | 6.6 | ||||||||
| Deferred tax assets | 17.3 | 28.2 | 16.5 | ||||||||
| Other non-current assets | - | 1.2 | - | ||||||||
|
|
|
| |||||||||
| Non-current assets | 1,297.1 | 1,490.4 | 1,280.4 | ||||||||
|
|
| ||||||||||
|
|
|
|
|
|
| ||||||
| Stocks |
| 3.7 |
|
| 4.1 |
|
| 4.1 | |||
| Debtors and prepayments |
| 57.7 |
|
| 69.8 |
|
| 61.3 | |||
| Current tax assets |
| 15.1 |
|
| 4.6 |
|
| 15.2 | |||
| Cash at bank |
| 562.9 |
|
| 491.6 |
|
| 514.9 | |||
|
|
|
|
|
|
|
|
| ||||
| Current assets |
| 639.4 |
| 570.1 |
| 595.5 | |||||
|
|
|
|
|
|
|
|
| ||||
|
|
|
|
|
| |||||||
| Creditors and accruals |
| (79.7) |
|
| (86.7) |
|
| (92.9) | |||
| Current borrowings |
| (98.1) |
|
| (13.8) |
|
| (7.4) | |||
| Current tax liabilities |
| (4.9) |
|
| (9.1) |
|
| (5.2) | |||
|
|
|
|
|
|
| ||||||
| Current liabilities |
| (182.7) |
|
| (109.6) |
|
| (105.5) | |||
|
|
|
|
|
|
|
|
| ||||
|
|
|
|
|
|
|
|
| ||||
| Net current assets | 456.7 | 460.5 | 490.0 | ||||||||
| Long-term borrowings | (585.1) | (676.8) | (653.9) | ||||||||
| Deferred tax liabilities | (87.7) | (112.2) | (85.8) | ||||||||
| Pension liabilities | - | (0.1) | - | ||||||||
| Other non-current liabilities | (13.3) | (1.2) | (19.2) | ||||||||
|
|
|
| |||||||||
| 1,067.7 | 1,160.6 | 1,011.5 | |||||||||
|
|
|
| |||||||||
| Total equity | |||||||||||
| Share capital | 49.3 | 49.1 | 49.2 | ||||||||
| Share premium | 170.2 | 168.3 | 168.9 | ||||||||
| Revenue and other reserves | 843.4 | 935.4 | 788.3 | ||||||||
|
|
|
| |||||||||
| Shareholders' funds | 1,062.9 | 1,152.8 | 1,006.4 | ||||||||
| Minority interests | 4.8 | 7.8 | 5.1 | ||||||||
|
|
|
| |||||||||
| 1,067.7 | 1,160.6 | 1,011.5 | |||||||||
|
|
|
| |||||||||
|
|
|
|
|
|
|
|
|
| |||
| Mandarin Oriental International Limited | |||||||||||||||||||
| Consolidated Statement of Changes in Equity | |||||||||||||||||||
| Attributable to shareholders of the Company | |||||||||||||||||||
| Asset | Attributable | ||||||||||||||||||
| Share | Share | Capital | Revenue | revaluation | Hedging | Exchange | to minority | Total | |||||||||||
| capital | premium | reserves | reserves | reserves | reserves | reserves | Total | interests | equity | ||||||||||
| US$m | US$m | US$m | US$m | US$m | US$m | US$m | US$m | US$m | US$m | ||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
| Six months ended 30th June 2009 | |||||||||||||||||||
| At 1st January 2009 | 49.2 | 168.9 | 268.4 | 415.5 | 220.0 | (16.3) | (99.3) | 1,006.4 | 5.1 | 1,011.5 | |||||||||
| Total comprehensive income | - | - | - | 74.2 | - | 5.4 | 23.0 | 102.6 | (0.3) | 102.3 | |||||||||
| Dividends paid by the Company | - | - | - | (49.2) | - | - | - | (49.2) | - | (49.2) | |||||||||
| Issue of shares | 0.1 | 1.3 | - | - | - | - | - | 1.4 | - | 1.4 | |||||||||
| Employee share option schemes | - | - | 1.7 | - | - | - | - | 1.7 | - | 1.7 | |||||||||
|
|
|
|
|
|
|
|
|
|
| ||||||||||
| At 30th June 2009 | 49.3 | 170.2 | 270.1 | 440.5 | 220.0 | (10.9) | (76.3) | 1,062.9 | 4.8 | 1,067.7 | |||||||||
|
|
|
|
|
|
|
|
|
|
| ||||||||||
| Six months ended 30th June 2008 | |||||||||||||||||||
| At 1st January 2008 | 48.7 | 163.5 | 264.3 | 440.0 | 262.9 | (2.0) | (25.1) | 1,152.3 | 8.0 | 1,160.3 | |||||||||
| Total comprehensive income | - | - | - | 36.1 | - | 1.8 | 4.6 | 42.5 | (0.2) | 42.3 | |||||||||
| Dividends paid by the Company | - | - | - | (49.0) | - | - | - | (49.0) | - | (49.0) | |||||||||
| Issue of shares | 0.4 | 4.8 | - | - | - | - | - | 5.2 | - | 5.2 | |||||||||
| Employee share option schemes | - | - | 1.8 | - | - | - | - | 1.8 | - | 1.8 | |||||||||
|
|
|
|
|
|
|
|
|
|
| ||||||||||
| At 30th June 2008 | 49.1 | 168.3 | 266.1 | 427.1 | 262.9 | (0.2) | (20.5) | 1,152.8 | 7.8 | 1,160.6 | |||||||||
|
|
|
|
|
|
|
|
|
|
| ||||||||||
| Year ended 31st December 2008 | |||||||||||||||||||
| At 1st January 2008 | 48.7 | 163.5 | 264.3 | 440.0 | 262.9 | (2.0) | (25.1) | 1,152.3 | 8.0 | 1,160.3 | |||||||||
| Total comprehensive income | - | - | - | 44.2 | (42.9) | (14.3) | (74.2) | (87.2) | (3.5) | (90.7) | |||||||||
| Dividends paid by the Company | - | - | - | (68.7) | - | - | - | (68.7) | - | (68.7) | |||||||||
| Dividends paid to minority shareholders | - | - | - | - | - | - | - | - | (0.1) | (0.1) | |||||||||
| Issue of shares | 0.5 | 5.4 | - | - | - | - | - | 5.9 | - | 5.9 | |||||||||
| Employee share option schemes | - | - | 4.1 | - | - | - | - | 4.1 | - | 4.1 | |||||||||
| Change in attributable interests | - | - | - | - | - | - | - | - | 0.7 | 0.7 | |||||||||
|
|
|
|
|
|
|
|
|
|
| ||||||||||
| At 31st December 2008 | 49.2 | 168.9 | 268.4 | 415.5 | 220.0 | (16.3) | (99.3) | 1,006.4 | 5.1 | 1,011.5 | |||||||||
|
|
|
|
|
|
|
|
|
|
| ||||||||||
| Total comprehensive income for the six months ended 30th June 2009 included in revenue reserves comprises profit attributable to shareholders of the Company of US$74.2 million (2008: US$36.1 million). | |||||||||||||||||||
| Total comprehensive income for the year ended 31st December 2008 included in revenue reserves comprises profit attributable to shareholders of the Company of US$67.1 million, fair value gains on revaluation of other investments of US$0.1 million and actuarial losses on employee benefit plans of US$23.0 million. | |||||||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
| Mandarin Oriental International Limited | ||||||||||||||
| Consolidated Cash Flow Statement | ||||||||||||||
| Restated | ||||||||||||||
| (unaudited) | Year ended | |||||||||||||
| Six months ended | 31st | |||||||||||||
| 30th June | December | |||||||||||||
| 2009 | 2008 | 2008 | ||||||||||||
| US$m | US$m | US$m | ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Operating activities | ||||||||||||||
|
|
|
|
|
|
|
|
|
| ||||||
| Operating profit |
| 13.0 |
|
| 44.3 |
|
| 86.2 |
| |||||
| Depreciation |
| 18.4 |
|
| 19.3 |
|
| 37.8 |
| |||||
| Amortization of intangible assets |
| 0.8 |
|
| 0.6 |
|
| 1.5 |
| |||||
| Non-cash items |
| 2.0 |
|
| 0.6 |
|
| 3.2 |
| |||||
| Movements in working capital |
| (8.5) |
|
| (14.1) |
|
| 0.5 |
| |||||
| Interest received |
| 1.1 |
|
| 6.5 |
|
| 13.4 |
| |||||
| Interest and other financing charges paid |
| (9.5) |
|
| (17.9) |
|
| (31.8) |
| |||||
| Tax paid |
| (3.0) |
|
| (5.0) |
|
| (6.9) |
| |||||
|
|
|
|
|
|
|
|
|
| ||||||
|
| 14.3 |
|
| 34.3 |
|
| 103.9 |
| ||||||
| Dividends from associates and joint venture |
| 7.1 |
| 9.5 |
|
| 20.0 |
| ||||||
|
|
|
|
|
|
|
|
|
| ||||||
| Cash flows from operating activities | 21.4 | 43.8 | 123.9 | |||||||||||
| Investing activities | ||||||||||||||
|
|
|
|
|
|
|
|
|
| ||||||
| Purchase of tangible assets |
| (21.9) |
|
| (30.0) |
|
|
| (68.8) |
| ||||
| Investment in and loans to associates |
| (0.7) |
|
| - |
|
|
| - |
| ||||
| Purchase of intangible assets |
| (0.7) |
|
| (0.8) |
|
|
| (9.6) |
| ||||
| Advance of mezzanine loans |
| - |
|
| (1.6) |
|
| (1.4) |
| |||||
| Increase in other investments |
| (0.2) |
|
| (0.2) |
|
| (0.7) |
| |||||
| Proceeds on disposal of joint venture |
| 91.1 |
|
| - |
|
| - |
| |||||
| Capital distribution from associates |
| - |
|
| 22.4 |
|
| 23.2 |
| |||||
|
|
|
|
|
|
|
|
|
| ||||||
| Cash flows from investing activities | 67.6 | (10.2) | (57.3) | |||||||||||
| Financing activities | ||||||||||||||
|
|
|
|
|
|
|
|
|
| ||||||
| Issue of shares |
| 1.5 |
|
| 5.2 |
|
| 5.8 |
| |||||
| Drawdown of borrowings |
| 12.0 |
|
| 18.9 |
|
| 35.3 |
| |||||
| Repayment of borrowings |
| (6.5) |
|
| (9.3) |
|
| (11.9) |
| |||||
| Dividends paid by the Company (note 10) |
| (49.2) |
|
| (49.0) |
|
| (68.7) |
| |||||
| Dividends paid to minority shareholders |
| - |
|
| (0.1) |
|
| (0.1) |
| |||||
|
|
|
|
|
|
|
|
|
| ||||||
| Cash flows from financing activities | (42.2) | (34.3) | (39.6) | |||||||||||
| Effect of exchange rate changes | 1.3 | 0.2 | (4.4) | |||||||||||
|
|
|
| ||||||||||||
| Net increase/(decrease) in cash and cash equivalents | 48.1 | (0.5) | 22.6 | |||||||||||
| Cash and cash equivalents at beginning of period | 514.7 | 492.1 | 492.1 | |||||||||||
|
|
|
| ||||||||||||
| Cash and cash equivalents at end of period | 562.8 | 491.6 | 514.7 | |||||||||||
|
|
|
| ||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Mandarin Oriental International Limited | |||||||||||||||||||
| Notes to Condensed Financial Statements | |||||||||||||||||||
| 1. | ACCOUNTING POLICIES AND BASIS OF PREPARATION | ||||||||||||||||||
| The condensed financial statements have been prepared in accordance with IAS 34, Interim Financial Reporting. 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 of interim financial information. | |||||||||||||||||||
| In 2009, the Group adopted the following standards, and amendments and interpretations to existing standards which are relevant to its operations: | |||||||||||||||||||
|
|
|
|
|
|
| ||||||||||||||
| IFRS 8 | Operating Segments | ||||||||||||||||||
| IAS 1 (revised 2007) | Presentation of Financial Statements | ||||||||||||||||||
| IAS 23 (revised 2007) | Borrowing Costs | ||||||||||||||||||
| Amendments to IFRS 1 | Cost of an Investment in a Subsidiary, Jointly | ||||||||||||||||||
| and IAS 27 | Controlled Entity or Associate | ||||||||||||||||||
| Amendment to IFRS 2 | Vesting Conditions and Cancellations | ||||||||||||||||||
| Amendments to IFRS 7 | Improving Disclosures about Financial Instruments | ||||||||||||||||||
| IFRIC 16 | Hedges of a Net Investment in a Foreign Operation | ||||||||||||||||||
| Improvements to IFRSs (2008) | |||||||||||||||||||
|
|
|
|
|
|
| ||||||||||||||
| With the exception of amendments to IFRS 1 and IAS 27 included in the 2008 improvement project, there are no changes in accounting policies that affect the Group's financial statements resulting from adoption of the above standards, amendments and interpretations as they are consistent with the policies already adopted by the Group. | |||||||||||||||||||
| IFRS 8 'Operating Segments' supersedes IAS 14 'Segment Reporting' and requires the reporting of financial and descriptive information about an entity's reportable segments on the basis of internal reports that are regularly reviewed by its management. The profit measure that is reviewed by management is earnings before interest, tax, depreciation and amortization ('EBITDA'), the segmental information on this basis is shown in note 3. There is no change in the Group's reportable segments from 2008 as they are consistent with the internal reporting provided to management. The Group's reportable segments are set out in note 2. No operating segments have been aggregated to form the reportable segments. | |||||||||||||||||||
| As a result of adoption of IAS 1 (revised 2007), two new primary statements, 'Consolidated Statement of Comprehensive Income' and 'Consolidated Statement of Changes in Equity' have been presented in these interim financial statements. The former replaces the 'Consolidated Statement of Recognized Income and Expense' presented in the 2008 annual financial statements. This change in presentation has no effect on reported profit or loss, total income and expense or net assets for any period presented. | |||||||||||||||||||
| Amendments to IFRS 1 and IAS 27 'Cost of an Investment in a Subsidiary, Jointly Controlled Entity or Associate' remove the definition of the cost method from IAS 27 and allow an entity to recognize a dividend from subsidiary, jointly controlled entity or associate in profit and loss in its separate financial statements when its right to receive the dividend is established. There is no impact on the consolidated financial statements as the changes only affect the separate financial statements of the investing entity. | |||||||||||||||||||
| The improvements to IFRS (2008) comprise amendments to a number of IFRSs which have no significant impact on the results of the Group's financial statements. | |||||||||||||||||||
| The Group also early adopted the following standard and amendment to an existing standard which are relevant to its operations: | |||||||||||||||||||
|
|
|
|
|
|
|
|
| ||||||||||||
| IFRS 3 (revised 2008) Business Combinations | |||||||||||||||||||
| Amendment to IAS 27 Consolidated and Separate Financial Statements | |||||||||||||||||||
|
|
|
|
|
|
|
|
| ||||||||||||
| IFRS 3 (revised) and the related amendment to IAS 27 (both effective prospectively from 1st July 2009) require the immediate expensing of all acquisition-related costs, the inclusion in the cost of acquisition of the fair value at acquisition date of any contingent purchase consideration, the remeasurement of previously held equity interest in the acquiree at fair value in a business combination achieved in stages, and accounting for changes in a parent's ownership interest in a subsidiary undertaking that do not result in the loss of control as equity transactions. The early adoption of IFRS 3 (revised) and the related amendment to IAS 27 has no material impact on the Group's financial statements. | |||||||||||||||||||
| In addition, on implementation of IFRS 8, the Group early adopted an amendment to IFRS 8 'Operating Segments' (effective from 1st January 2010) included in the 2009 improvement project. The amendment clarifies that a measure of total assets should be disclosed in the financial statements only if that amount is regularly provided to management. | |||||||||||||||||||
| There have been no other changes to the accounting policies described in the 2008 annual financial statements. | |||||||||||||||||||
| Certain comparative figures have been reclassified to conform with current year presentation. | |||||||||||||||||||
| 2. | REVENUE | |||||||||
| Six months ended 30th June | ||||||||||
| 2009 | 2008 | |||||||||
| US$m | US$m | |||||||||
|
|
| |||||||||
| By geographical area: | ||||||||||
| Hong Kong and Macau | 74.1 | 106.6 | ||||||||
| Other Asia | 47.0 | 60.0 | ||||||||
| Europe | 52.8 | 68.8 | ||||||||
| The Americas | 31.3 | 31.2 | ||||||||
|
|
| |||||||||
| 205.2 | 266.6 | |||||||||
|
|
| |||||||||
| 3. | EARNINGS BEFORE INTEREST, TAX, DEPRECIATION | |||||||||
| AND AMORTIZATION ('EBITDA') | ||||||||||
| Six months ended 30th June | ||||||||||
| 2009 | 2008 | |||||||||
| US$m | US$m | |||||||||
|
|
| |||||||||
| By geographical area: | ||||||||||
| Hong Kong and Macau | 20.4 | 38.5 | ||||||||
| Other Asia | (1.4) | 6.4 | ||||||||
| Europe | 12.2 | 16.7 | ||||||||
| The Americas | 1.0 | 2.6 | ||||||||
| EBITDA | 32.2 | 64.2 | ||||||||
| Less: Depreciation and amortization | (19.2) | (19.9) | ||||||||
|
|
| |||||||||
|
|
| |||||||||
| Operating profit | 13.0 | 44.3 | ||||||||
|
|
| |||||||||
| 4. | SHARE OF RESULTS OF ASSOCIATES AND JOINT VENTURE | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Depreciation | Operating | Net | Net | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| and | (loss)/ | financing | (loss)/ | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| EBITDA | amortization | profit | charges | Tax | profit | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| US$m | US$m | US$m | US$m | US$m | US$m | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
| ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Six months ended 30th June 2009 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| By geographical area: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Hong Kong and Macau | 0.1 | - | 0.1 | - | - | 0.1 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Other Asia | 7.5 | (3.8) | 3.7 | (1.1) | (0.3) | 2.3 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| The Americas | 0.1 | (1.4) | (1.3) | (2.1) | (0.1) | (3.5) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
| ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 7.7 | (5.2) | 2.5 | (3.2) | (0.4) | (1.1) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Non-trading item in Other Asia: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Provision against asset | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| impairment (note 8) | (5.4) | - | (5.4) | - | - | (5.4) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
| ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
| ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2.3 | (5.2) | (2.9) | (3.2) | (0.4) | (6.5) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
| ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Six months ended 30th June 2008 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| By geographical area: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Hong Kong and Macau | 2.4 | (0.9) | 1.5 | (0.2) | (0.1) | 1.2 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Other Asia | 15.0 | (3.8) | 11.2 | (1.6) | (2.5) | 7.1 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| The Americas | 4.6 | (1.7) | 2.9 | (2.4) | - | 0.5 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
| ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 22.0 | (6.4) | 15.6 | (4.2) | (2.6) | 8.8 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
|
|
|
|
|
| ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 5. | GAIN ON DISPOSAL OF JOINT VENTURE | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| The sale of the Group's 50% interest in Mandarin Oriental, Macau was completed on 15th June 2009. The hotel was valued at US$205.0 million for the purpose of the sale. On disposal of its 50% interest, the Group received proceeds of US$91.1 million, with a post-tax gain of US$78.5 million. The Group continues to manage the hotel for a period of up to two years under a short-term management arrangement. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 6. | TAX | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Six months ended 30th June | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2009 | 2008 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| US$m | US$m | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
|
| ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Tax charged to profit and loss is analyzed as follows: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Current tax | 2.9 | 5.6 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Deferred tax | (0.1) | 3.3 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
|
| ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2.8 | 8.9 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
|
| ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Six months ended 30th June | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2009 | 2008 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| US$m | US$m | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
|
| ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| By geographical area: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Hong Kong and Macau | 2.1 | 5.0 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Other Asia | 1.0 | 1.5 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Europe | 0.7 | 4.0 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| The Americas | (1.0) | (1.6) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
|
| ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2.8 | 8.9 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
|
| ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Tax relating to components of other comprehensive income is analyzed as follows: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Cash flow hedges | 1.3 | 0.6 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
|
| ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 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 venture of US$0.4 million (2008: US$2.6 million) are included in share of results of associates and joint venture and share of other comprehensive income of associates and joint venture respectively. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 7. | EARNINGS PER SHARE | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Basic earnings per share are calculated on profit attributable to shareholders of US$74.2 million (2008: US$36.1 million) and on the weighted average number of 984.8 million (2008: 980.6 million) shares in issue during the period. The weighted average number excludes shares held by the Trustee of the Senior Executive Share Incentive Schemes. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Diluted earnings per share are calculated on profit attributable to shareholders of US$74.2 million (2008: US$36.1 million) and on the weighted average number of 988.8 million (2008: 991.8 million) shares after adjusting for the number of shares which are deemed to be issued for no consideration under the Senior Executive Share Incentive Schemes based on the average share price during the period. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| The weighted average number of shares is arrived at as follows: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Ordinary shares in millions | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| 2009 | 2008 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
|
| ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Weighted average number of shares in issue | 984.8 | 980.6 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Adjustment for shares deemed to be issued for no consideration | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| under the Senior Executive Share Incentive Schemes | 4.0 | 11.2 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
|
| ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Weighted average number of shares for diluted earnings per share | 988.8 | 991.8 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
|
| ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Additional basic and diluted earnings per share are also calculated based on profit attributable to shareholders excluding non-trading items. A reconciliation of earnings is set out below. | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
| Six months ended 30th June | |||||||||||||||||||||||||||
| 2009 | 2008 | ||||||||||||||||||||||||||
| Basic | Diluted | Basic | Diluted | ||||||||||||||||||||||||
| earnings | earnings | earnings | earnings | ||||||||||||||||||||||||
| per share | per share | per share | per share | ||||||||||||||||||||||||
| US$m | US¢ | US¢ | US$m | US¢ | US¢ | ||||||||||||||||||||||
|
|
|
|
|
|
| ||||||||||||||||||||||
| Profit attributable | |||||||||||||||||||||||||||
|
| to shareholders | 74.2 | 7.53 | 7.50 | 36.1 | 3.68 | 3.64 | ||||||||||||||||||||
| Non-trading items | |||||||||||||||||||||||||||
|
| (refer note 8) | (73.1) | (7.42) | (7.39) | - | - | - | ||||||||||||||||||||
|
|
|
|
|
|
| ||||||||||||||||||||||
| Underlying profit | |||||||||||||||||||||||||||
| attributable to | |||||||||||||||||||||||||||
| shareholders | 1.1 | 0.11 | 0.11 | 36.1 | 3.68 | 3.64 | |||||||||||||||||||||
|
|
|
|
|
|
| ||||||||||||||||||||||
| 8. | NON-TRADING ITEMS | ||||||||||||||||||||||||||
| Non-trading items are separately identified to provide greater understanding of the Group's underlying business performance. Items classified as non-trading items include the gain from disposal of a hotel interest and a provision against asset impairment, which are non-recurring in nature. | |||||||||||||||||||||||||||
| An analysis of non-trading items is set out below: | |||||||||||||||||||||||||||
| Six months ended 30th June | |||||||||||||||||||||||||||
| 2009 | 2008 | ||||||||||||||||||||||||||
| US$m | US$m | ||||||||||||||||||||||||||
|
|
| ||||||||||||||||||||||||||
| Gain on disposal of joint venture | 78.5 | - | |||||||||||||||||||||||||
| Provision against asset impairment | (5.4) | - | |||||||||||||||||||||||||
|
|
| ||||||||||||||||||||||||||
| 73.1 | - | ||||||||||||||||||||||||||
|
|
| ||||||||||||||||||||||||||
| 9. | CAPITAL COMMITMENTS | ||||||||||
| At 31st | |||||||||||
| At 30th June | December | ||||||||||
| 2009 | 2008 | 2008 | |||||||||
| US$m | US$m | US$m | |||||||||
| 94.2 | 67.7 | 91.1 | |||||||||
|
|
| ||||||||||
| 10. | DIVIDENDS | ||||||||||
| An interim dividend of US¢2.00 per share has been declared in respect of 2009 (2008: US¢2.00 per share). A final dividend of US¢5.00 per share amounting to a total of US$49.2 million has been paid in respect of 2008. This amount will be accounted for as an appropriation of revenue reserves in the year ending 31st December 2009. | |||||||||||
| 11. | RELATED PARTY TRANSACTIONS | ||||||||||
| There have been no related parties transactions that have taken place in the first six months of the current financial year or any changes in the related parties transactions described in the last Annual Report that have had or could have a material effect on the financial position or performance of the Group. | |||||||||||
| 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 the Company, 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 83 to 84 of the Company's Annual Report for 2008, 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 be disclosed by the Disclosure and Transparency Rules 4.2.7 and 4.2.8 issued by the Financial Services Authority of the United Kingdom. | ||||||||||||||||
| For and on behalf of the Board | |||||||||||||||||
| Edouard Ettedgui | |||||||||||||||||
| John R Witt | |||||||||||||||||
| Directors | |||||||||||||||||
| 6th August 2009 | |||||||||||||||||
| The interim dividend of US¢2.00 per share will be payable on 21st October 2009 to shareholders on the register of members at the close of business on 28th August 2009. The ex-dividend date will be on 26th August 2009, and the share registers will be closed from 31st August to 4th September 2009, inclusive. Shareholders will receive their dividends in United States Dollars, unless they are registered on the Jersey branch register where they will have the option to elect for sterling. These shareholders may make new currency elections for the 2009 interim dividend by notifying the United Kingdom transfer agent in writing by 2nd October 2009. The sterling equivalent of dividends declared in United States Dollars will be calculated by reference to a rate prevailing on 7th October 2009. Shareholders holding their shares through The Central Depository (Pte) Limited (‘CDP’) in Singapore will receive United States Dollars unless they elect, through CDP, to receive Singapore Dollars. |
| Mandarin Oriental Hotel Group | ||||||||||||||||
| Mandarin Oriental Hotel Group is an international hotel investment and management group with deluxe and first class hotels, resorts and residences in sought-after destinations around the world. The Group now operates, or has under development, 41 hotels representing over 10,000 rooms in 25 countries, with 17 hotels in Asia, 14 in The Americas and ten in Europe and North Africa. In addition, the Group operates, or has under development, 13 Residences at Mandarin Oriental connected to its properties. The Group has equity interests in many of its properties and net assets of approximately US$2.1 billion as at 30th June 2009. | ||||||||||||||||
| 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 by investing in the Group's exceptional facilities and its people, while maximizing profitability and long-term shareholder value. The Group regularly receives recognition and awards for outstanding service and quality management. 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 and has its primary share listing in London, and further 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 - | ||||||||||||||||
| For further information, please contact: | ||||||||||||||||
| Mandarin Oriental Hotel Group International Limited | ||||||||||||||||
| John R Witt | (852) 2895 9288 | |||||||||||||||
| Jill Kluge / Sally de Souza | (852) 2895 9167 | |||||||||||||||
| GolinHarris | ||||||||||||||||
| Kennes Young | (852) 2501 7987 | |||||||||||||||
| As permitted by the Disclosure and Transparency Rules of the Financial Services Authority of the United Kingdom, the Company will not be sending a printed version of the Half-Yearly Results announcement to shareholders. The Half-Yearly Results announcement will remain available on the Company's website, www.mandarinoriental.com, together with other Group announcements. | ||||||||||||||||