Mandarin Oriental International Limited - Mandarin Oriental Hotel ...

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