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					Mandarin Oriental International Limited

     2001 Results Announcement by

Edouard Ettedgui, Chief Executive Officer
                   &
      John Witt, Finance Director
    2001 ANNUAL RESULTS HIGHLIGHTS

                                                                   Change vs
                                                        2001         2000%

Profit before Interest and Tax (US$m)                     41                23




•   Includes first full year trading with London and former Rafael hotels
•   9/11 impact on 2nd half PBIT (US$15m in 2001 vs US$36m in 2000)
•   Includes Washington development costs of US$4m; c. US$5m to be
    written back in 2002
  2001 ANNUAL RESULTS HIGHLIGHTS


                                            2001   2000

Profit before Interest and Tax (US$m)        41     53

Cashflow from Operating Activities (US$m)    14     31

Net Profit (US$m)                             4     18

Earnings per Share (US ¢)                   0.50   2.21

Dividends per Share (US ¢)                  0.50   1.35

Debt / Equity Ratio (%)                     42%    34%
              2001 PERFORMANCE


Second-half     •   Global recession and 11th September
impact          •   Significant reduction in US travel
                •   Comprehensive plans implemented at
                    hotel and corporate level
                •   Focus on marketing and cost
                    containment
                •   Maintaining guest satisfaction
            2001 PERFORMANCE


Continued    •   Projects in Tokyo and Washington
progress     •   New York project under construction
             •   First full year of operations in London
             •   The Oriental, Bangkok celebrates 125th
                 anniversary with successful room renovation
       THE WAY FORWARD



    “Our Mandarin Oriental brand will be
    recognised as one of the top three global
             luxury hotel groups.

We will operate at least 10,000 rooms in major
  business centres and key leisure destinations
 worldwide. And we will consistently achieve
       shareholders’ profit expectations.”
               PROGRESS TO DATE


Within top       •   Well recognised brand with strong
three luxury         company culture
global hotel     •   Distinctive, perfectly located hotels with
                     unique sense of place
groups
                 •   Trend-setting and award-winning
                     restaurants, bars and spas
                 •   Training and development programmes
                     in place
                 •   Record-breaking number of awards in
                     2001
                                   AWARDS LISTS




  Conde Nast Traveler – USA          Business Traveller – UK        Far Eastern Economic Review
        The Gold List              World’s Best Business Hotel     Highest Quality in Service / Products
     The Oriental, Bangkok            The Oriental, Bangkok         Hong Kong’s Leading Companies
 Mandarin Oriental, Hong Kong      Mandarin Oriental, Hong Kong    Companies that others try to emulate
Kahala Mandarin Oriental, Hawaii    Best Business Hotel Chain        Mandarin Oriental Hotel Group
Mandarin Oriental, San Francisco      Worldwide/Asia-Pacific
 Turnberry Isle Resort & Club,     Mandarin Oriental Hotel Group
            Florida
                  PROGRESS TO DATE


Growth strategy     •   Portfolio increased from 12 to 18 properties
gains               •   Additional three hotels under development
momentum            •   Strategic importance of London-New York-
                        Tokyo
                    •   Improved geographic spread of properties
                    •   50% of revenues now from The Americas and
                        Europe
                    •   30% increase in management fees since 1999
                    •   Leisure business over 35% of total room inventory
                2001 PERFORMANCE



Key Strategic     1.   Improve our competitive position
Objectives        2.   Towards 10,000 rooms under operation
                  3.   Leverage corporate core competencies
                  4.   Ensure strong cashflow
1   IMPROVE OUR COMPETITIVE POSITION



Worldwide     •   Most hotels enhanced their competitive
                  position
              •   Significant drop in visitor arrivals in
                  usually strong second half
1   IMPROVE OUR COMPETITIVE POSITION



Asia          Mandarin Oriental, Hong Kong
              •   61% occupancy (77% in 2000)
              •   Reduced corporate travel from US,
                  Europe and Japan
              •   Food and beverage revenues decline 15%
              •   Steady average rate but under pressure in
                  last quarter
1   IMPROVE OUR COMPETITIVE POSITION



Asia          The Excelsior, Hong Kong
              •   77% occupancy (87% in 2000)
              •   Declines in corporate and airline
                  business
              •   Steady average rate but under pressure
                  in last quarter
1   IMPROVE OUR COMPETITIVE POSITION



Asia          Mandarin Oriental, Manila
              Mandarin Oriental, Jakarta

              •   Negatively impacted by economic
                  uncertainty and weaker currencies
1   IMPROVE OUR COMPETITIVE POSITION



Asia          The Oriental, Singapore
              •   Improved competitive position
              •   Occupancy down from 81% to 69%,
                  due to fall in visitor arrivals
1   IMPROVE OUR COMPETITIVE POSITION



Asia          Mandarin Oriental, Macau
              •   6% increase in total revenue
              •   Leveraging of resort facilities
1   IMPROVE OUR COMPETITIVE POSITION



Asia          The Oriental, Bangkok
              •   Self-financed US$30m River Wing
                  renovation complete
              •   Continues to out-perform competition
              •   Lower occupancy and food and
                  beverage revenues
1   IMPROVE OUR COMPETITIVE POSITION



Asia           Mandarin Oriental, Kuala Lumpur
               • 10% increase in total revenues
               • Undisputed market leader
1   IMPROVE OUR COMPETITIVE POSITION



Europe        •   Benefited from London’s re-opening
                  and additional hotels in Munich and
                  Geneva acquired in May 2000
1   IMPROVE OUR COMPETITIVE POSITION



Europe        Mandarin Oriental Hyde Park, London
              •   Achieved 62% occupancy and US$453
                  average rate
              •   Significant drop in US visitors
              •   International recognition
              •   Firmly established within top tier of
                  London hotels
              •   Foliage Restaurant awarded Michelin Star
1   IMPROVE OUR COMPETITIVE POSITION



Europe        Mandarin Oriental, Munich
              • Continues as market leader
              • September events affect occupancy
1   IMPROVE OUR COMPETITIVE POSITION



Europe        Mandarin Oriental Hotel du Rhone, Geneva
              • Steady performance despite economy
              • Increased revenues by 12%
              • Michelin Star for Le Neptune
1   IMPROVE OUR COMPETITIVE POSITION



The Americas   •   Operating conditions challenging even
                   before 11th September
               •   Corporate and leisure travel down
1   IMPROVE OUR COMPETITIVE POSITION



The Americas   The Mark, New York
               •   Improved competitive position
               •   Room yields down 20%
1   IMPROVE OUR COMPETITIVE POSITION



The Americas   Kahala Mandarin Oriental, Hawaii
               • Second half decrease in occupancy
                 partially offset by higher room rate
1   IMPROVE OUR COMPETITIVE POSITION



The Americas   Mandarin Oriental, Miami
               • Subdued occupancy at 40%
               • Start up losses in first full year of
                 operation (Group’s 25% share)
1   IMPROVE OUR COMPETITIVE POSITION



The Americas   Mandarin Oriental, San Francisco
               Turnberry Isle Resort and Club, Florida
               Elbow Beach, Bermuda


               •   All three properties severely impacted
                   by decline in business and leisure travel
            TOWARDS 10,000 ROOMS
2             UNDER OPERATION


Progress with   •   Tokyo development proceeding
vision              •   171 rooms
                    •   Opening 2006
                    •   Ideal central location
                    •   US$37m investment with long term
                        lease agreement
            TOWARDS 10,000 ROOMS
2             UNDER OPERATION


Progress with   •   Washington DC development announced
vision              • 400 rooms
                    • Completion in Spring 2004
                    • 80% equity interest at US$19m
                    • US$ 35m TIF incentive from District of
                      Columbia
                    • Set to become the city’s most prominent
                      hotel
            TOWARDS 10,000 ROOMS
2             UNDER OPERATION


Progress with   •   New York 251-room hotel on track to
vision              open in late 2003
                •   Reviewing potential projects in key
                    global destinations
             LEVERAGE CORPORATE
3             CORE COMPETENCIES


Reorganisation   •   Positioned for growth
of corporate     •   Specialist areas supported
                      • Design and project management
support
                      • Information technology
                      • Market research
                 •   Corporate activity reduced in line with downturn
                 •   Regional sales forces largely maintained
             LEVERAGE CORPORATE
3             CORE COMPETENCIES


Reorganisation   •   Sharpened brand communications
of corporate         •   New advertising markets
support              •   Increased media coverage
                     •   Enhanced website – achieved US$3m in
                         annual revenues
4      ENSURE STRONG CASHFLOW



Fundamental   •   High level of fixed costs in luxury hotel
to growth         sector
              •   Cashflow impacted by September
                  events and economic downturn
              •   Cost-containment measures in hotels
                  and corporate level
              •   Healthy balance sheet
            FINANCIAL HIGHLIGHTS 2001

Summary cashflow                             2001             2000
                                            US$m             US$m
•   EBITDA from subsidiaries                    44               52
•   Dividends from associates                    6                5
•   Net financing charges paid                (28)            (21)
•   Other                                      (8)              (5)
                                           ----------        ----------
Operating Activities                            14               31


•   EBITDA from subsidiaries down by 15%
•   Financing charges increased due to higher borrowings, including full
    year effect of convertible bonds and refinancing costs
•   EBITDA (including associates) net interest cover of 2.1 (2.5 in 2000)
•   Tax loss carryforwards largely unrecognised
                   FINANCIAL HIGHLIGHTS 2001

                                                          2001         2000
                                                         US$m         US$m

      Operating Activities                                   14            31

      Investing Activities
          Capital expenditure on existing properties        (15)         (39)
          Acquisition of The Rafael Group                       -       (135)
          Other investments                                 (24)         (28)
                                                       ----------     ----------
                                                            (39)        (202)



•   ‘Other’ includes US$15m funding for New York and US$4m for Miami
•   New York’s remaining equity funding of c. US$45m, will be invested in 2002
             FINANCIAL HIGHLIGHTS 2001

                                           2001       2000
                                          US$m       US$m

Operating Activities                          14          31

Investing Activities                        (39)      (202)

Financing Activities
• Rights Issue                                   -       146
• Dividends                                  (12)       (10)
• Other                                        16         13
                                        ----------   ---------
     Net decrease in cash in the year        (21)       (22)
                                        ======       =====
           FINANCIAL HIGHLIGHTS 2001



    •   HK$ 3 billion facility – completed in August 2001
    • HK$1.7 refinancing in Hong Kong
    • Balance for future development opportunities

•   Average term of group borrowings now over five years
    FINANCIAL HIGHLIGHTS 2001



•   2001 Gearing
    • 42% including convertible debt in net debt
    • 31% assuming conversion of convertible
•   Group financial capacity
    • c. US$80m cash deposits
    • US$175m committed, unused facilities
            FINANCIAL HIGHLIGHTS 2001



•   Net Assets
    • Net assets per share – US$1.05 at 31 December 2001
      (US$1.15 – 2000)
    • c. US$75m decline in values; particularly on Hong Kong hotels
    • Revaluations have no net impact on P & L
              SUMMARY



Outlook   •   Too early to predict an end to today’s
              challenging environment
          •   Luxury hotel industry continues to be
              attractive sector:
              • Limited new supply
              • Demographic trends
              • Continued globalisation of markets
          •   Strongly positioned for global recovery
          •   Stakeholder support to achieve vision