Mandarin Oriental International Limited - Mandarin Oriental Hotel ...

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Page 16 2. REVENUE By geographical area: Hong Kong & Macau 106.3 Other Asia 111.0 Europe 123.3 The Americas 64.0 3. OPERATING PROFIT 2006 2005 US$m US$m 404.6 By geographical area: Hong Kong & Macau (1.8) Other Asia 9.0 Europe 28.4 The Americas 9.5 45.1 Gain on disposal of The Mark (refer note 4) 76.8 4. GAIN ON DISPOSAL OF THE MARK 161.5 38.3 106.8 92.6 399.2 2006 2005 US$m US$m 121.9 37.3 (6.4) 20.5 9.0 60.4 - The sale of the Group’s 100% interest in The Mark, New York was completed on 16th February 2006 for a gross consideration of US$150.0 million. The hotel was originally acquired in 2000 as part of the US$142.5 million acquisition of The Rafael Group. The pre-tax gain on this disposal is US$76.8 million, and the post-tax gain on the disposal is US$35.0 million. - more - 60.4
Page 17 5. SHARE OF RESULTS OF ASSOCIATES AND JOINT VENTURES 2006 2005 US$m US$m 6. By geographical area: Hong Kong & Macau 5.0 Other Asia 9.3 The Americas (1.3) 7. TAX 13.0 Current tax 50.6 Deferred tax (11.1) 3.6 6.2 (1.1) The Directors have reviewed the carrying values of all operating properties owned by associates and joint ventures at 31st December 2006 in consultation with the Group’s independent valuers. The Group’s share of the underlying net revaluation surplus of US$16.6 million has been dealt with in capital reserves (2005: net revaluation surplus of US$4.6 million to capital reserves). GAINS ON DISPOSAL OF ASSOCIATES On 8th June 2005, the Group completed the sale of its 40% investment in the partnership that leased the Kahala Mandarin Oriental hotel in Hawaii to its 60% partner, Kahala Royal Corporation (‘KRC’). The Group had exercised its put option in January 2005 pursuant to its rights under its partnership agreement with KRC. On completion, the Group received a gross consideration of US$97.1 million, which included the repayment of loans to an associate of US$4.1 million. The pre-tax gain on this disposal was US$50.3 million. After utilization of brought forward US tax losses, the post-tax gain on this disposal was US$36.1 million. In July 2005, the Group disposed of its investment in Reid Street Properties for a cash consideration of US$2.3 million resulting in a gain on disposal of US$2.0 million. 8.7 2006 2005 US$m US$m 39.5 12.7 12.1 Tax on profits has been calculated at rates of taxation prevailing in the territories in which the Group operates and includes a tax charge of US$41.8 million arising on the disposal of the Group’s 100% interest in The Mark, New York (refer note 4) . The 2005 tax on profits included a tax charge of US$14.2 million arising on the disposal of the Group’s 40% investment in Kahala Mandarin Oriental, Hawaii. This tax charge was calculated after utilizing brought forward tax losses in the United States of US$65.1 million and comprised current tax of US$2.5 million and deferred tax of US$11.7 million on temporary differences (refer note 6) . - more - 24.8
Page 1 and 2: To: Business Editor 6th March 2007
Page 3 and 4: Page 3 GROUP REVIEW Strong results
Page 5 and 6: Page 5 1. Improving continuously ou
Page 7 and 8: Page 7 The Excelsior, Hong Kong ach
Page 9 and 10: Page 9 With the exception of Paris,
Page 11 and 12: Page 11 Mandarin Oriental Internati
Page 13 and 14: Page 13 Mandarin Oriental Internati
Page 15: Page 15 Mandarin Oriental Internati
Page 19 and 20: Page 19 9. TANGIBLE ASSETS AND CAPI
Page 21 and 22: Page 21 12. TAX INCREMENT FINANCING
Page 23: NOTE TO EDITORS Mandarin Oriental H

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