Pandora

M&A Activity • Aug 8, 2017

PANDORA today announces that the Company has entered into an agreement to
acquire City Time S.L. (City Time), which owns the distribution rights to
PANDORA jewellery in Spain, Gibraltar and Andorra. The acquisition follows the
takeover of the distribution in Belgium and South Africa earlier in the year
and is consistent with PANDORA’s strategic intent to increase control of the
PANDORA brand and strengthen the owned and operated retail footprint.

“By taking over the distribution of PANDORA jewellery in Spain, we get direct
access to one of the larger jewellery markets in Europe. Our Spanish partner
has done a tremendous job in establishing a strong store network in the
country. The acquisition is in line with our strategic intent to take over
distribution and enables us to gain full control of the network in Spain and
realize the full potential of our brand in this promising market,” says Anders
Colding Friis, CEO in PANDORA.

PANDORA will pay the owners of City Time a total amount of around EUR 110
million (approximately DKK 820 million) for 100% of the share capital in City
Time. The multiple paid (EV/EBITDA) is in line with the price paid related to
PANDORA’s earlier distributor acquisitions. With the acquisition, PANDORA will
gain full control of the distribution rights to PANDORA jewellery in Spain,
Gibraltar and Andorra, as well as a fully operational set-up in Spain,
including a regional office and distribution centre in Madrid and around 500
employees. The agreement is subject to certain conditions to be fulfilled. The
transaction is expected to be finalized during Q4 2017.

The acquisition will grant PANDORA the opportunity to enter Spain directly.
With the agreement, PANDORA will add to its retail chain 51 PANDORA owned
concept stores located in Spain. Furthermore, PANDORA will take over
distribution to 15 franchisee concept stores and around 500 other points of
sales in Spain, Gibraltar and Andorra.

In 2016, City Time’s revenue, consisting of retail sales in the acquired
PANDORA stores and sell-in to the existing wholesale network in the region, was
approximately EUR 94 million in total (approximately DKK 700 million).

FINANCIAL GUIDANCE
PANDORA’s financial guidance for 2017 remains unchanged and the content of this
release will have no impact on PANDORA's outlook for 2017.

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
8,100 points of sale, including more than 2,100 concept stores.

Founded in 1982 and headquartered in Copenhagen, Denmark, PANDORA employs
around 21,500 people worldwide of whom around 12,400 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 Kristian Lysgaard
Vice President, Head of Investor Relations Director, Corporate Communications
+45 7219 5739 +45 7219 5774
mtje@pandora.net krly@pandora.net
Brian Granberg Martin Kjærsgaard Nielsen
Investor Relations Officer Head of Media Relations
+45 7219 5344 +45 5077 5271
brgr@pandora.net mnie@pandora.net