Pandora_Annual_Report_2018

Key gures and nancial ratios stated in the consolidated nancial statements have been calculated in accordance with the Danish Finance Society’s guidelines. EBITDA Earnings before interest, tax, depreciation and amortisation EBIT Earnings before interest and tax (operating profit) EBITDA margin, % EBITDA / revenue EBIT margin, % EBIT / revenue NIBD Cash less loans and borrowings and other liabilities relating to obligations to acquire non-controlling interests (current and non-current) NIBD to EBITDA NIBD / EBITDA (rolling 12 months) Capital expenditure (CAPEX) Purchase of intangible assets and property, plant and equipment for the year, excluding acquisitions of subsidiaries Return on invested capital (ROIC), % EBIT / invested capital incl. goodwill Cash conversion, % Free cash flow before acquisitions / EBIT Retail like-for-like sales-out growth, % Revenue from Pandora owned concept stores and eSTOREs (excluding outlets) that have been owned and operated for more than 12 months relative to the same period last year Total like-for-like sales-out growth, % Revenue from concept stores and eSTOREs across all channels (excluding outlets) that have been operated for more than 12 months relative to the same period last year Organic growth, % Growth in external revenue in local currency relative to the same period last year adjusted for the acquisition/divestment of distributors and franchisee stores (the effect of converting wholesale to retail revenue and vice versa) Days sales outstanding (DSO) Last three months of wholesale and third-party distribution revenue relative to trade receivables Revenue growth, % (This year’s revenue - last year’s revenue) (rolling 12 months) Last year’s revenue Revenue growth, local currency, % (This year’s revenue at last years exchanges rates - last year’s revenue) (rolling 12 months) Last year’s revenue Gross margin, % Gross profit / revenue Effective tax rate, % Income tax expense / profit before tax Equity ratio, % Equity / total assets Payout ratio, % Dividends paid for the year / net profit Total payout ratio, % Dividends paid for the year plus value of share buyback / net profit EPS basic Net profit / average number of shares outstanding EPS diluted Net profit / average number of shares outstanding, including the dilutive effect of share options ‘in the money’ Pandora presents the following alternative performance measures not de ned according to IFRS (non-GAAP measures) in the Annual Report: Furthermore, a breakdown of ‘Operating working capital’, ‘Net working capital’ and ‘Invested capital’ is given on the section 3 front page. FORWARD-LOOKING STATEMENTS The Annual Report contains forward-looking statements, which include estimates of financial performance and targets. These statements are not guarantees of future performance and involve certain risks and uncertainties. Therefore, actual future results and trends may differ materially from what is forecast in this report due to a variety of factors. NOTE 5.6 Financial definitions P A N D O R A A N N U A L R E P O R T 2 0 1 8 C O N T E N T S G R O U P 9 6