Pandora

Report Publication Announcement • Jan 11, 2018

On Tuesday 16 January at 10:30 CET, PANDORA will be hosting a Capital Markets
Day in Copenhagen, Denmark for analysts, institutional investors and media.

At the event, PANDORA will present the Company’s strategic direction towards
2022, which includes an ambition to increase revenue annually in the period
2018-2022 with 7-10% in local currency, while maintaining a solid EBITDA margin
of around 35% beginning from 2018.

PANDORA holds an industry-leading position as the world largest jewellery
manufacturer with the most recognised brand in the industry. Leveraging its
fully integrated value chain, PANDORA will address the ample growth
opportunities in the jewellery market through:

-- Innovate affordable jewellery:
Strengthening its charms and bracelet category leadership, while
significantly growing other jewellery categories including rings, earrings
and necklaces & pendants
-- Agile manufacturing:
Leveraging its newly built production facilities and innovation centre to
innovate jewellery manufacturing
-- Digitalised brand experience:
Building towards leadership in the digital space and delivering a
personalised brand experience across channels supported by
a continued significant marketing spend with an increasing focus on digital
media
-- Winning omni-channel retail:
Transforming from a wholesale to predominately retail business, opening
PANDORA owned concept stores supplemented by acquisitions of franchisee
stores, offering strong financial value to shareholders

INNOVATE AFFORDABLE JEWELLERY
As a category leader and innovator, PANDORA will continue to drive growth in
the charms and bracelet category. On top, PANDORA will significantly grow
rings, earrings and necklaces & pendants and has an ambition to generate around
50% of revenue from those categories by 2022. Innovation and continuous product
newness are key components to spark consumer demand, and therefore PANDORA will
launch a minimum of 1 new innovative jewellery concept per year and increase
its annual collections from 7 to 10.

AGILE MANUFACTURING
PANDORA has recently established the largest innovation centre for finished
jewellery in the world. Utilising this and its new manufacturing facilities in
Thailand, PANDORA will expand its manufacturing capabilities to deliver a
diversified and innovative product offering while increasing efficiency and
agility.

DIGITALISED BRAND EXPERIENCE
To address changing consumer behaviour, PANDORA will make a step change on
digital marketing, which in 2022 will represent more than 60% of marketing
spend (from around 30% today). PANDORA will strengthen its share of voice in
the market and spend more than DKK 2.5 billion on marketing, corresponding to
around 8% of revenue.

WINNING IN OMNI-CHANNEL RETAIL
PANDORA will increase its owned and operated footprint, opening around 200
concept stores per year (hereof around 65% PANDORA owned) and acquire 75-150
franchise concept stores per year. In 2022, around 2/3 of concept stores will
be owned and operated by PANDORA. PANDORA has an ambition to grow the eSTORE to
represent 10-15% of revenue, while integrating the online and physical channels
by offering consumers omni-channel fulfilment and service functionalities. The
multi-branded part of the network will either be transformed into fully branded
points of sale (shop-in-shops) or closed.

As part of the presentations, the following forward-looking statements will be
disclosed:

-- Group revenue
, in the period 2018-2022, is expected to increase annually with 7-10% in
local currency
-- PANDORA expects annual like-for-like growth in PANDORA owned concept
stores (including eSTORE) to be low- to mid-single digit
-- PANDORA expects annual revenue tailwind of DKK 500-1,000 million from
forward integration
-- PANDORA expects to add around net 200 concept stores annually in
2018-2022
-- Group
EBITDA margin, in the period 2018-2022, is expected to be around 35%.
Compared to current levels, the EBITDA margin will be negatively impacted
by
-- a broader and more innovative product portfolio, and
-- an increasing share of PANDORA owned stores
-- CAPEX
, in the period 2018-2022, as a percentage of annual revenue is expected to
be around 5%
-- The effective tax rate
in the period is expected to be 21-22%.

The event will be webcasted live at: investor.pandoragroup.com and be made
available on the Company’s website after the event.

All presentation material will be available on the day at:
investor.pandoragroup.com/presentations.cfm.

ABOUT PANDORA
PANDORA designs, manufactures and markets hand-finished and contemporary
jewellery made from high-quality materials at affordable prices. PANDORA
jewellery is sold in more than 100 countries on six continents through around
7,700 points of sale, including more than 2,300 concept stores.

Founded in 1982 and headquartered in Copenhagen, Denmark, PANDORA employs more
than 23,800 people worldwide of whom around 13,200 are located in Thailand,
where the Company manufactures its jewellery. PANDORA is publicly listed on the
Nasdaq Copenhagen stock exchange in Denmark. In 2016, PANDORA's total revenue
was DKK 20.3 billion (approximately EUR 2.7 billion).

CONTACT
For more information, please contact:

INVESTOR RELATIONS MEDIA RELATIONS
Magnus Thorstholm Jensen Martin Kjærsgaard Nielsen
Vice President, Head of Investor Relations Global Head of Media Relations
+45 7219 5739 +45 50 77 52 71
mtje@pandora.net mnie@pandora.net
Christian Møller
Investor Relations Officer
+45 7219 5361
chmo@pandora.net