Annual Report 2011 - Mandarin Oriental Hotel Group

2 EBITDA (earnings before interest, tax, depreciation and amortization)
and operating profit from subsidiaries
Annual Report 2011 49
2011 2010
US$m US$m
Analysis by geographical area
– Hong Kong 81.0 61.5
– Other Asia 18.8 18.5
– Europe 28.8 26.2
– The Americas 1.7 3.3
Underlying EBITDA from subsidiaries 130.3 109.5
Gain on One Hyde Park lease space (refer note 7) 10.1 –
Provisions against asset impairment (refer note 7) (1.6 ) –
EBITDA from subsidiaries 138.8 109.5
Less depreciation and amortization (49.7 ) (44.6 )
Operating profit 89.1 64.9
Analysis by activity
– Hotel ownership 106.1 91.4
– Hotel management 32.7 18.1
EBITDA from subsidiaries 138.8 109.5
– Hotel ownership 58.6 48.7
– Hotel management 30.5 16.2
Operating profit 89.1 64.9
The following items have been (credited)/charged in arriving at operating profit:
Rental income (10.5 ) (10.1 )
Interest income from mezzanine loans (0.4 ) (0.5 )
Depreciation of tangible assets (refer note 9) 47.1 42.2
Amortization of intangible assets (refer note 8) 2.6 2.4
Operating lease payments 22.7 16.9
Employee benefit expense
– Salaries and benefits in kind 220.2 189.2
– Defined benefit pension costs (refer note 12) 0.6 1.7
– Defined contribution pension costs 0.4 0.6
– Share-based payment 2.6 3.7
223.8 195.2
Net foreign exchange (gain)/loss (0.2 ) 0.3
Auditors’ remuneration
– Audit 1.2 1.0
– Non-audit services 0.5 0.8
1.7 1.8
Operating profit included the following non-trading items
– Gain on One Hyde Park lease space (refer note 7) (10.1 ) –
– Provisions against asset impairment (refer note 7) 1.6 –