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PANDORA ANNUAL REPORT 2016
58 • SHAREHOLDER INFORMATION
SHARE PRICE DEVELOPMENT 2016
Feb
Jan
Mar Apr May Jun Jul Aug Sep Oct Nov Dec
500
600
700
800
900
1,000
DKK
PANDORA shares have been listed on the Nasdaq OMX
Copenhagen stock exchange since 5 October 2010.
PANDORA is included in the blue chip index OMX C20.
In 2016, the lowest closing price was DKK 764 on 9
February 2016 and the highest closing price was DKK 999.5
on 24 May 2016. At the end of 2016, the share price was
DKK 924, corresponding to an increase of 6% compared
with the end of 2015. By comparison, OMX C20 decreased
13% during the year, while OMX C20 CAP decreased 2%.
Around 125 million PANDORA shares were traded in
2016 with an average trading volume of around 497,000
shares per day.
CAPITAL STRUCTURE AND CASH ALLOCATION
PANDORA’s capital structure is aimed at providing sufficient
financial flexibility to pursue the Company’s strategic goals,
while maintaining a stable financial structure based on a
conservative balance sheet.
Consequently, PANDORA targets a net interest-bearing debt
to EBITDA ratio of 0-1. PANDORA will aim to keep the interest-
bearing debt level at the lower end of the target interval, while
the range allows for financial flexibility throughout the year.
PANDORA’s financial gearing ratio may temporarily exceed the
targeted range in case of larger acquisitions.
Net interest-bearing debt to EBITDA was 0.3x as of 31
December 2016.
PANDORA’s guiding principles for the use of free cash
flow are as follows:
1. Repayment of interest-bearing debt if financial gearing is
outside the Company’s capital structure policy
2. Funding of organic growth opportunities or other value-
creating opportunities, including forward integration
3. Distribution to the Company’s shareholders through
dividend and share buyback programmes aimed at
reducing the Company’s share capital
PANDORA aspires to increase the nominal dividend per
share annually, while returning any additional excess cash
via share buyback programmes.
DIVIDEND
For the financial year 2015, PANDORA paid out ordinary
dividend of DKK 13 per share, corresponding to DKK
1.5 billion in total. From 2017, PANDORA proposes to
supplement the ordinary dividend with three extraordinary
quarterly dividends.
Following a strong financial performance in 2016, the Board
of Directors proposes to return DKK 4.0 billion in dividend in
2017. This includes an ordinary dividend of DKK 9 per share
and additionally three extraordinary quarterly dividends of DKK
9 per share in relation to Q1 2017, Q2 2017 and Q3 2017. In
total, PANDORA will pay out a total of DKK 36 per share in
2017.
SHARE BUYBACK PROGRAMME
In 2016, PANDORA bought back 4,641,992 own shares,
corresponding to 4.0% of the share capital, and at a total
value of DKK 4.0 billion. At the Annual General Meeting,
SHAREHOLDER INFORMATION