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NOTES
104 • Consolidated financial statements
PANDORA ANNUAL REPORT 2016
SECTION 4: CAPITAL STRUCTURE AND NET FINANCIALS, CONTINUED
4.2 EARNINGS PER SHARE AND DIVIDEND
2016
2015
Profit attributable to equity holders, DKK million
6,025
3,674
Weighted average number of ordinary shares
114,162,672 118,981,186
Effect of share options
581,252
823,567
Weighted average number of ordinary shares adjusted for the effect of dilution
114,743,924 119,804,753
Basic earnings per share, DKK
52.8
30.9
Diluted earnings per share, DKK
52.5
30.7
There have been no transactions between the reporting date and the date of completion of the Annual Report involving shares that would have significantly
changed the number of shares or potential shares in PANDORA A/S.
Dividend
At the end of 2016, proposed dividend (not yet declared)
was DKK 9.00 per share (2015: DKK 13.00 per share),
corresponding to DKK 1,007 million. Declared dividend of
DKK 13.00 per share, corresponding to DKK 1,511 million
in 2015, was paid to the shareholders in 2016. No dividend
was paid on treasury shares.
Dividend paid has had no effect on the Group’s tax
expense for the year.
Distributable reserves
When calculating the amount available for distribution of
dividend, treasury shares are deducted from distributable
reserves.
Accounting policies
Dividend proposed is recognised as a liability at the date
of the adoption at the Annual General Meeting (declaration
date). Extraordinary dividend is recognised as a liability at the
declaration date.
4.3 NET INTEREST-BEARING DEBT
DKK million
2016
2015
Loans and borrowings, non-current
3,008
2,350
Other liabilities, non-current¹
334
203
Loans and borrowings, current
3
257
Cash
-897
-889
Net interest-bearing debt
2,448
1,921
1
Put options to acquire non-controlling interests have been reclassified to be
included in net interest-bearing debt (NIBD). Consequently NIBD and NIBD
to EBITDA have been recalculated for 2015.
Capital management
The principal objectives of PANDORA’s capital management
are to ensure shareholders a competitive return on their
investment and to ensure that PANDORA will be able to meet
all the commitments set out in the loan agreements with the
banks. The basis of PANDORA’s capital management is the
NIBD to EBITDA ratio. It is the policy of the Group that this
ratio should be between 0 and 1 on a 12-month rolling basis.
At 31 December 2016, the NIBD to EBITDA ratio was 0.3
(2015: 0.3).
In June and November 2016, PANDORA added an
additional DKK 2,500 million in committed credit facilities.
Total committed credit facilities amount to DKK 7,500
million (2015: DKK 5,000 million). DKK 1,000 million
are committed until June 2019 and DKK 6,500 million are
committed until June 2021.
Accounting policies
Subsequent to initial recognition, interest-bearing loans and
borrowings are measured at amortised cost using the effective
interest rate method. Gains and losses are recognised in the
income statement when the liabilities are derecognised as
well as through the effective interest rate method. Amortised
cost is calculated by taking into account any discount or
premium at inception, and fees and other costs.
PANDORA has entered into put options with non-
controlling interests of certain Group entities. The put
option gives the non-controlling shareholder the right to sell
its non-controlling interest to PANDORA at a predefined
exercise price, which is based on the revenue realised.
Financial liabilities relating to the acquisition of non-
controlling interests is measured at fair value as if the put
options have been exercised already. The value is determined