NOTES
100•Consolidated financial statements
PANDORAANNUAL REPORT2014
EVENTSAFTERTHE REPORTING PERIOD
5.8
Germany
In January 2015, PANDORA entered into an agreement
withDHGGmbH (DHG) to take over up to78 commercial
leaseholds inGermany formerly trading under the BiBa
name (a ladies fashionbrand). 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 the new owned and operated
stores, including establishment and relocation of 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 to be around EUR 50million
(approximatelyDKK 370million), of which themajority
will be recognised as CAPEX and inventories.The fundswill
be spent over the course of 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.
SECTION 5: OTHER DISCLOSURES, CONTINUED
PANDORAplans, through the cooperation, to accelerate
the store roll-out, enhance the retail focus andmake
significant marketing investments in theChinesemarket.
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.
On 1 July 2015, PANDORAwill, as part of the
agreement withOracle, purchase themajority of Oracle’s
assets inChina.The termof the agreement endsDecember
2018.The total amount tobe paid toOraclewill depend on
the realised revenue in2018 and part of the payment will
be delayed to endof the term of the agreement.The initial
payment toOracle is expected to be 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 approximatelyDKK170-420
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.
