4•The PANDORA story 2014
PANDORAANNUAL REPORT2014
EXECUTIVE SUMMARY
FINANCIAL REVIEW
In2014, PANDORA delivered a solid performance in
revenue, margins and cash flow, which all exceeded full
year expectations. Strong revenue growthwas seen across
all major regions.
• Group revenue in 2014wasDKK 11,942million
comparedwithDKK9,010million in 2013:
• Americas increased by 19.3% (20.6% increase in
local currency)
• Europe increasedby 41.1% (38.8% increase in local
currency)
• Asia Pacific increased by 53.5% (58.1% increase in
local currency)
• Grossmarginwas 70.5% in2014 comparedwith66.6%
in 2013
• EBITDA increased by 49.0% toDKK 4,294million and
the EBITDAmarginwas 36.0% in 2014 comparedwith
32.0% in2013
• EBIT increased by 51.9% toDKK 4,072million,
corresponding to an EBITmargin of 34.1% in 2014
comparedwith 29.8% in 2013
• Net profit increased by 39.5% toDKK 3,098million in
2014 comparedwith a net profit of DKK 2,220million
in 2013
• Free cash flowwasDKK 3,868million in 2014
comparedwithDKK1,956million in 2013
• In 2014, PANDORA bought back 5,875,257 own shares
at a purchase price value of DKK2,400million
• For the financial year 2014, the Board of Directors
proposes a dividend of DKK 9.0per share, correspon-
ding to a pay-out ratio of 35.1% comparedwith 37.1%
in 2013. Including the share buyback in 2014 the
total pay-out ratiowas 112.7% comparedwith68.6%
in 2013.
FINANCIALGUIDANCE FOR2015
2015
2014
Guidance
Actual
Revenue, DKKbillion
>14
11.9
EBITDAmargin
approx. 37% 36.0%
CAPEX, DKKmillion
approx. 800
455
Effective tax rate
approx. 20% 20.0%
In2015, PANDORAwill continue to focus on driving like-
for-like growth in the existing stores, aswell as expanding
the store network innewer aswell as inmore penetrated
markets. Revenue is expected to increase tomore than
DKK 14billion, with the two growthdrivers expected
to contribute equally.The EBITDAmargin is expected to
increase from36.0% in2014 to approximately 37% in
2015.The increase includes an expected gain from lower
hedged commodity prices compared to 2014, tempered by
continued investments in infrastructure. Expectations are
basedonunchanged currency rates.
CAPEX for the year is expected to be approximately
DKK 800million.The expected level of investments
includes development of the crafting facilities inThailand,
investments in theCompany’s distribution network,
including the announced accelerated expansion in
Germany, China and Japan, aswell as significant IT
investments. CAPEX in the period 2016-2017 is expected to
continue to stay at an elevated level similar to2015, due to
continued investments in the aforementioned areas.
PANDORA plans to continue to expand the store
network and expects to addmore than 300 new concept
stores in2015.This includes an expected opening of
around60newowned andoperated concept stores in
Germany following the recent acquisitionof up to78 lease-
holds in the country.The geographic split of the remaining
concept store openings is expected tobe similar to the
concept store openings in2014.
