FINANCIAL REVIEW• 57
DEVELOPMENT INNETWORKINGCAPITAL
Share of
Share of
2014 vs.
revenue revenue
DKKmillion
2014
2013 2013 (%)
2014
2013
Inventories
1,684
1,490
13.0% 14.1% 16.5%
Trade receivables
1,110
895
24.0% 9.3% 9.9%
Trade payables
-804
-539
49.2% -6.7% -6.0%
Other
-1,556
-837
85.9% -13.0% -9.3%
Total
434
1,009 -57.0% 3.6% 11.2%
BALANCE SHEET
ANDCASH FLOW
PANDORA generated a free cash flow of DKK 3,868
million in 2014 comparedwithDKK 1,956million in2013
corresponding to a cash conversion of 124.9% compared
with 88.1% in 2013.The improved cash flowwas primarily
driven by increasing profits aswell as a favourable
movement inworking capital.
Operatingworkingcapital at theendof 2014was16.7%of
revenue, comparedwith20.5%at theendof 2013.
InventorieswereDKK1,684million, up13.0%on2013,
primarilydrivenbyhigherproductionasaconsequenceof high-
er revenue.Comparedwith2013, silver andgoldpricesaffected
inventorieswithadecreaseof approximately17%.However,
thisdecreasewasmore thanoffset by thehigherproduction.
Trade receivables increased toDKK1,110million in2014
(9.3%of revenue) fromDKK895million in2013 (9.9%of
revenue).
Tradepayables increased toDKK804million in2014
comparedwithDKK539million in2013.The increasewas
primarily related toahigher level of activity.
PANDORA invested a total of DKK 455million in
capital expenditure (CAPEX) in 2014, including intangible
assets of DKK 164millionmainly related to keymoney
in connectionwith the opening of PANDORA-owned
stores and IT investments. Investments in property, plant
and equipment of DKK291millionmainly consisted of
investments in crafting facilities inThailand, office reloca-
tions and leasehold improvements related to the opening
of several stores during the year. CAPEXwas 3.8% of 2014
revenue.
During2014,DKK2,400millionwasused topurchase
own shares related to the sharebuybackprogramme launched
on18February2014.At 31December2014, PANDORAheld
7,216,058 treasury shares, corresponding to5.6%of the share
capital.
Interest-bearingdebtwasDKK10millionat theendof 2014
comparedwithDKK49millionat theendof 2013.
Cashamounted toDKK1,131millionat theendof 2014
comparedwithDKK686millionat theendof 2013.
Net interest-bearingdebt (NIBD) at theendof 2014was
DKK -1,121millioncorresponding toa ratioof -0.3 toEBITDA
(NIBD/EBITDA).
