PANDORA Annual Report 2014 - page 9

6•The PANDORA story 2014
PANDORAANNUAL REPORT2014
KEY EVENTS IN 2014
Middle East
InMarch2014, PANDORA signed an agreement to acquire
100% of the shares in PanMeA/S.The transactionwas
closed on 16 January 2015 upon fulfilment of certain
conditions. PanMeA/S holds the rights to distribute
PANDORA jewellery in theUAE, Bahrain, Qatar and
Oman. PANDORA paid a one-time cashpayment of DKK
110million, primarily related to the rights to distribute
PANDORA jewellery in theUAE, Bahrain, Qatar and
Oman, and non-current assets and inventories related to11
concept stores and three shop-in-shops in theUAE.
Japan
In September 2014, PANDORA signed an agreementwith
Bluebell on joint distributionof PANDORA jewellery in
Japan from1 January2015.Through the cooperation,
PANDORAplans to accelerate the store roll-out, enhance the
retail focus andmake significantmarketing investments in
the Japanesemarket. Bluebellwill contributewith in-depth
knowledgeof the retailmarket and the Japanese consumer as
well as its insight into the Japanese real estatemarket.
As part of the agreement withBluebell, PANDORAwill
purchase the assets related to the distributionof PANDORA
jewellery in Japan in a non-cash transaction on 1 January
2015.The initial term of the agreement is five years. Upon
termination of the agreement, PANDORAwill take over the
full distribution of PANDORA jewellery in Japan.The total
amount to be paid toBluebell will depend on the realised
revenue in 2019 andwill be in the range of HKD 74-220
million (or approximatelyDKK52-156million).
Hannoush (US)
InAugust 2014, PANDORA acquired 27 concept stores
fromUS jeweller Hannoush, as part of a process to refresh
the network in theNortheasternUS, which has been
underperforming relative to the rest of theUS. Following
the transaction five of the stores located outside the
Northeast were sold to a franchisee, resulting in a net total
of 22 stores acquired.
The transaction value totalledUSD 28million (DKK162
million), including locations, inventories andother assets.
Initial in-store remodelling costs are estimated at USD6
million (DKK37million), bringing the total investment to
USD34million (DKK199million).
Organisational changes
Chairman of the Board of Directors
InMarch 2014, PANDORA announced that Marcello
Bottoli would be standing down from his role as Chairman
of the Board due to other professional commitments. At an
ExtraordinaryGeneral Meeting inOctober, Peder Tuborgh
was elected as newmember of the Board of Directors, and
the Board of Directors subsequently constituted itself with
Peder Tuborgh as newChairman.
CEO
InAugust, PANDORA announced that Anders Colding
Friis will succeedAllan Leighton as CEO inMarch 2015.
At that time, Allan Leightonwill be stepping down from
his role as CEO. At the next Annual General Meeting, the
current Board of Directors will recommendAllan Leighton
as newCo-Deputy Chairman of the Board.
CFO
PeterVekslund, former SeniorVice President, Head of
Finance, succeededHenrikHolmark as CFOof PANDORA
on1 January 2015. As announced inAugust 2014, Henrik
Holmark stepped down from his role as CFOof PANDORA
to joinDr.MartensAirwair Group Ltd as CFO.
Indictment
InNovember, theDistrict Court inGlostrup passed its
verdict in a case against PANDORA concerning potential
breach of section 27(1) of the SecuritiesTradingAct, cf.
section 93(6), cf. subsection 1. PANDORAwas found to
be in breach of this section in the SecuritiesTradingAct
and the Companywas to pay a fine of DKK 2million.
PANDORA has appealed the verdict to the Eastern
HighCourt.
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