The PANDORA story 2014•7
The verdict concerned a case dating back to 2011 and
relates toCompanyAnnouncement No. 30 of 2August
2011, when theCompany announced its downward
adjustment of its revenue growth expectations, two
weeks earlier than the ordinary reporting date for the
Q2 2011 results.TheDistrict Court inGlostrup found
that theCompanywas obliged to announce a downward
adjustment of the revenue growth expectations for 2011,
no later than 18 July 2011. As previously communicated,
PANDORA’s position is that:
• theCompany acted properly during a swift and
unexpected downturn in sales bymaking a timely and
precise announcement adjusting its annual forecast in
light of new information and basedon an analysis of the
changingmarket dynamics in July 2011,
• theCompanyhas at all times been in full compliance
with all relevant rules and regulations for issuers of
shares.
EVENTSAFTERTHE REPORTING PERIOD
Germany
In January 2015, PANDORA entered into an agreement
withDHGGmbH (DHG) to take over up to 78 commercial
leaseholds inGermany formerly trading under the BiBa
name (a ladies fashion brand). PANDORAwill pay a
service fee toDHG formaking the leaseholds available.
All 78 leaseholds concern stand-alone stores located in
prime locations inGermany that fit well with our existing
concept store expansion strategy inGermany. During 2015,
PANDORAwill open owned and operated concept stores
in the new locations, some of whichwill be a relocation of
existing PANDORA-owned stores.
The total investment for thenewowned andoperated
stores, including establishment and relocationof stores
(including initial inventory in the stores), costs related to
temporarily inactive stores in the transitionperiod, service
fees toDHG aswell as all other costs related to store
implementation, is expected tobe around EUR50million
(approximatelyDKK370million), ofwhich themajoritywill
be recognised asCAPEX and inventories.The fundswill be
spent over the courseof 2015.
China
In February 2015, PANDORA entered an agreement with
Oracle Investment (Hong Kong) Limited (“Oracle”) about
joint distribution of PANDORA jewellery inChina from
1 July 2015 to31December 2018. At the end of the
agreement, PANDORAwill take over the full distribution of
PANDORA jewellery inChina.
PANDORAplans, through the cooperation, to
accelerate the store roll-out, enhance the retail focus and
make significant marketing investments in theChinese
market. Oraclewill contributewith its in-depth knowledge
of the retail market and theChinese consumer aswell as
their insight into theChinese real estatemarket, whichwill
aid PANDORA in securing themost attractive locations.
On1 July 2015, PANDORAwill, as part of the
agreement withOracle, purchase themajority of Oracle’s
assets inChina.The term of the agreement endsDecember
2018.The total amount tobe paid toOraclewill depend on
the realised revenue in 2018 andpart of the payment will
be delayed to endof the termof the agreement.The initial
payment toOracle is expected tobe approximatelyHKD
120million (or approximatelyDKK100million), depending
on the value of the assets at the time of the completion of
the agreement.The total payment will be in the range of
HKD200-500million (or approximatelyDKK 170-420
million).The agreement is subject to certain conditions to
be fulfilled.
Major shareholder announcement
On16 February 2015PANDORAwas notifiedbyBlackRock
InvestmentManagement (UK) Limited that BlackRock, Inc.
has increased its holding of shares inPANDORAA/S at 13
February 2015 to6,434,446 shares, corresponding to5.02%
of the share capital and the voting rights.
