56• FINANCIAL REVIEW
PANDORAANNUAL REPORT2014
REGIONAL
EBITDAMARGINS
2014
vs. 2013
2014
2013
(%pts)
Americas
41.4% 42.6% -1.2%
Europe
43.3% 36.1% 7.2%
Asia Pacific
49.5% 37.8% 11.7%
Unallocated costs
-7.4% -7.4%
-
Group EBITDAmargin
36.0% 32.0% 4.0%
SENSITIVITYANALYSIS
ONCURRENCY
1
Change in
DKKmillion
exchange rate Revenue
EBITDA
USD
+10% 452
164
CAD
+10%
84
73
AUD
+10%
81
60
GBP
+10% 169
138
EUR
+1%
31
21
THB
+10%
-
-163
1
Revenue and EBITDAwouldhave been impactedby the above
amounts if exchange rates in2014had beenhigher than the real-
ised exchange rates.The impact would have been the opposite if
exchange rates had been lower.
EBITDA
EBITDA for 2014 increasedby 49.0% toDKK 4,294
million, resulting in an EBITDAmargin of 36.0% compared
with 32.0% in 2013.
TheEBITDAmargin forAmericaswas 41.4%, down1.2
percentagepoints comparedwith2013.Thedecreasewas
partiallydue to the inclusionof Brazil inOtherAmericas
(previously included inOther Europe),whichhadadiluting
effect onmargins of approximatelyonepercentagepoint.
Furthermore, EBITDAmarginwas negatively impactedby the
purchaseof inventory fromanet total of 22concept stores
fromUS jewellerHannoushatwholesalepriceswhichwill
continue to impact EBITDAnegativelyuntil soldout.The
EBITDAmarginwas alsoaffectedby the improvement ingross
margin from lower rawmaterial prices,whichwas partially
offset bynominallyhigher customs cost inCanadaandBrazil.
TheEBITDAmargin for Europe increased from36.1% in
2013 to43.3% in2014.The increase inEuropewas primarily
drivenby the increase ingrossmarginaswell as improved
leverageon thecost base froman increase in revenue -
primarily in theUK, ItalyandFrance.
TheEBITDAmargin forAsiaPacific region improvedby
11.7percentagepoints to49.5% in2014.The improvement
was primarilydrivenbyhigher revenue in the regionaswell
as improvedgrossmargin.
Unallocated costswere 7.4% of revenue in 2014
comparedwith 7.4% in 2013.
EBITDA is impacted by different currencies. A 10% increase
in average exchange rates for themain currencies (1%
deviation for EUR) would impact EBITDA by approximately
DKK164million for USD, DKK 138million for GBP, DKK
73million for CAD, DKK21million for EUR, DKK 60
million forAUD andDKK -163million forTHB.
EBIT
EBIT for 2014 increased toDKK4,072million (2013:DKK
2,681million), an increaseof 51.9%comparedwith2013,
resulting inanEBITmarginof 34.1% for 2014versus 29.8%
in2013.
NET FINANCIALS
Net financials amounted toanexpenseofDKK200million in
2014comparedwith incomeofDKK61million in2013.The
decrease innet financialswasmainly related tounrealised
exchange rate losses.
INCOMETAX EXPENSE
Income tax expensewasDKK 774million in2014
comparedwithDKK522million in 2013, corresponding to
an effective tax rate of 20% for 2014 comparedwith 19%
in2013.
