GOVERNANCEANDMANAGEMENT• 35
CONCENTRATIONOF KEY FUNCTIONS INTHAILANDAND SUPPLYCHAINDISRUPTION
Our production and product development are concentrated inThailand and supply four distribution centres globally.
Description
Status
We have concentrated key functions inThailand, including
Production andNew Product Development. In addition,
we have one of four global distribution centres located in
Thailand.
We set up aThailandBusiness ContinuityManagement
Department in 2012 tomonitor any factors that could
impact operations or production.The Business Continuity
Plan for production has been testedwith satisfactory results.
Our operations are dependent on rawmaterials being
imported intoThailand and on the uninterrupted operation
of our facilities. In the past, political unrest inThailand has
occasionally caused brief disruptions to our supply chain.
Supply chain disruptions have not had any significant
impact on production or product development to date.
We continuously evaluate the benefit and risk of
concentrating production andproduct development in
Thailand.
Thailand, including Bangkok, is occasionally hit by heavy
monsoon rain, which can result in severe flooding.
We currently have seven crafting facilities inGemopolis,
an industrial zone outside Bangkok.This area is generally
well drained and protected from flooding.We have a
contingency plan inplace shouldflooding occur, although
there have been no significant disruptions todate.
In addition, we are planning to establish a new crafting
facility inNorthernThailand. Detailed planning for this
facilitywill begin in2015.
We operate four global distributions centres responsible
for supplying storeswithmerchandise throughout the year.
Amajor breakdown of ITor facilitieswith lengthy supply
chain outage as a result will impact PANDORA’s results.
Our global physical and information security requirements
ensure that our operations can be restored tominimise
impact on the business.
MAJORMARKETDEPENDENCY
PANDORA’s revenue is to some extent exposed to the development inmajormarkets.
Description
Status
We are exposed to performance and development in the
majormarkets.Themajormarkets have experienced solid
growth for a substantial period. In the event of a significant
market decline or loss of access to amarket, thiswill have
an impact onGroup results.
Majormarkets constituting 5% ormore of theGroup’s
revenue include theUS, Canada, theUK, Italy, Germany,
Russia andAustralia.
We continuously analyse the key drivers of potential growth
and failure inmajormarkets.
We have developedmarket-specific strategies to ensure
continued growth in ourmajormarkets.
