NOTES
Consolidated financial statements •85
SECTION 4
CAPITAL S RUCTURE
ANDNET FINANCIALS
CASHCONVERSION
TOTALPAYOUTRATIO
SHAREBUYBACK
2,400
DKKmillion
124.9%
112.7%
This section includes notes related toPANDORA’s
capital structure andnet financials, including financial
risks (see note 4.4). As a consequenceof its operations,
investments and financing, PANDORA is exposed to a
number of financial risks that aremonitored andman-
aged via PANDORA’sGroupTreasury. PANDORAuses a
number of financial instruments tohedge its exposure to
fluctuations in commodity prices and similar. Financial
instruments aredescribed innote 4.5.
Thebasis of PANDORA’s capitalmanagement is the
NIBD/EBITDA ratio,whichManagement seeks tomain-
tainbetween 0 and 1. At 31December 2014, the ratio
was -0.3. PANDORA’s ability to keep this low ratio is
basedon the high cash conversion. The cash conversion
was 124.9% in 2014 comparedwith 88.1% in 2013.
14%
GBP
38%
USD
8%
Other
26%
EUR
7%
CAD
7%
AUD
1-3months ahead
4-6months ahead
7-9months ahead
9-12months ahead
100
90
80
70
60
50
40
30
20
10
0
%
90-100%
MIN
.
MAX
.
MIN
.
MAX
.
MIN
.
MAX
.
MIN
.
MAX
.
70-90%
50-70%
30-50%
COMMODITYHEDGERATIO
REVENUEBREAKDOWNBYCURRENCY
