Mandarin Oriental International Limited - Mandarin Oriental Hotel ...

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60 NOTES TO THE FINANCIAL STATEMENTS CONTINUED 19 Share capital Authorized MANDARIN ORIENTAL INTERNATIONAL LIMITED Ordinary shares in millions 2005 2004 2005 2004 US$m US$m Shares of US¢5 each 1,500.0 1,500.0 75.0 75.0 Issued and fully paid At 1st January 878.1 876.9 43.9 43.9 Repurchase of shares under share incentive schemes (2.2) – (0.1) – Issued under share incentive schemes 3.9 1.0 0.2 – Conversion of convertible bonds 112.8 0.2 5.7 – At 31st December 992.6 878.1 49.7 43.9 Outstanding under share incentive schemes (27.2) (26.1) (1.4) (1.3) At 31st December 965.4 852.0 48.3 42.6 20 Share premium 2005 2004 US$m US$m At 1st January 104.4 103.7 Repurchase of shares under share incentive schemes (2.2) – Issued under share incentive schemes 3.0 0.5 Conversion of convertible bonds 69.6 0.2 174.8 104.4 Outstanding under share incentive schemes (16.0) (15.4) At 31st December 158.8 89.0 21 Senior Executive Share Incentive Schemes The Senior Executive Share Incentive Schemes were set up in order to provide selected executives with options to purchase ordinary shares in the Company. The exercise price of the granted options is based on the average market price for the five trading days immediately preceding the date of grant of the options. Options are vested in tranches over a period of up to five years and are exercisable for up to ten years following the date of grant. Prior to the adoption of the 2005 Plan on 4th May 2005, ordinary shares were issued on the date of grant of the options to the Trustee of the Schemes, Mandarin Oriental Trustees Limited, a wholly-owned subsidiary undertaking, which holds the ordinary shares until the options are exercised. Under the 2005 Plan, ordinary shares may be issued upon exercise of the options. The shares issued under the Schemes held on trust by the wholly-owned subsidiary undertaking are, for presentation purposes, netted off the Company’s share capital in the consolidated balance sheet (refer note 19) and the premium attached to them is netted off the share premium account (refer note 20).
21 Senior Executive Share Incentive Schemes continued Movements for the year: 2005 2004 Weighted Weighted average average exercise Ordinary exercise Ordinary price shares price shares US$ in millions US$m US$ in millions US$m At 1st January 0.64 26.1 16.7 0.64 25.4 16.3 Granted 0.82 3.9 3.2 0.57 1.0 0.5 Exercised 0.50 (0.6) (0.3) 0.52 (0.3) (0.1) Repurchased and cancelled 1.05 (2.2) (2.3) – – – At 31st December 0.64 27.2 17.3 0.64 26.1 16.7 The weighted average share price during the year was US$0.86 (2004: US$0.60) per share. Outstanding at 31st December: Ordinary shares in millions Expiry dateExpiry date Exercise price US$ 2005 2004 2005 1.2 – 0.7 2006 1.4 0.9 0.9 2007 1.2 0.3 0.3 2008 0.5 – 0.8 6.2 6.3 2009 0.7 – 0.8 3.5 3.7 2010 0.5 – 0.7 5.9 6.2 2011 0.6 2.1 2.1 2012 0.4 – 0.5 2.1 2.1 2013 0.3 – 0.4 1.3 1.3 2014 0.6 1.0 1.0 2015 0.8 3.9 – Unallocated – 1.5 27.2 26.1 The fair value of options granted during the year determined using the trinomial valuation model was US$1.9 million (2004: US$0.3 million).The significant inputs into the model were share price of US$0.87 (2004: US$0.60), at the grant date, exercise price shown above, expected volatility based on the last three years of 36% (2004: 42%), dividend yield of 1.05% (2004: nil), option life disclosed above, and annual risk-free interest rate of 4.3% (2004: 4.2%). ANNUAL REPORT 2005 61
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MANDARIN ORIENTAL INTERNATIONAL LIM
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2 CONTENTS 01 Corporate Overview 03
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4 HIGHLIGHTS MANDARIN ORIENTAL INTE
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6 CHAIRMAN’S STATEMENT OVERVIEW M
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8 GROUP CHIEF EXECUTIVE’S REVIEW
Page 12 and 13: 10 GROUP CHIEF EXECUTIVE’S REVIEW
Page 14 and 15: 12 GROUP CHIEF EXECUTIVE’S REVIEW
Page 16 and 17: 14 OPERATING SUMMARY The operating
Page 18 and 19: 16 OPERATING SUMMARY CONTINUED EURO
Page 20 and 21: 18 INTERNATIONAL RECOGNITION Mandar
Page 22 and 23: 20 FINANCIAL REVIEW A CCOUNTING POL
Page 24 and 25: 22 FINANCIAL REVIEW CONTINUED Cash
Page 26 and 27: 24 FINANCIAL REVIEW CONTINUED TREAS
Page 28 and 29: 26 DIRECTORS’ PROFILES Simon Kesw
Page 30 and 31: 28 CONSOLIDATED PROFIT AND LOSS ACC
Page 32 and 33: 30 CONSOLIDATED STATEMENT OF RECOGN
Page 34 and 35: 32 PRINCIPAL ACCOUNTING POLICIES A
Page 36 and 37: 34 PRINCIPAL ACCOUNTING POLICIES CO
Page 42 and 43: 40 NOTES TO THE FINANCIAL STATEMENT
Page 72 and 73: 70 PRINCIPAL SUBSIDIARIES, ASSOCIAT
Page 74 and 75: 72 INDEPENDENT AUDITORS’ REPORT T
Page 76 and 77: 74 CORPORATE GOVERNANCE The Group
Page 78 and 79: 76 CORPORATE GOVERNANCE CONTINUED D
Page 80 and 81: 78 CORPORATE GOVERNANCE CONTINUED D
Page 82 and 83: 80 SHAREHOLDER INFORMATION Financia
Page 84 and 85: 82 MANDARIN ORIENTAL HOTEL GROUP CO
Page 86 and 87: 84 SALES AND RESERVATIONS OFFICES C
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