Pandora — Earnings Release 2014

Aug 12, 2014

-- Group revenue in Q2 2014 was DKK 2,544 million, an increase of 31.7% or
37.1% in local currency, compared with Q2 2013:
-- Americas increased by 5.0% (11.7% increase in local currency)
-- Europe increased by 65.7% (63.9% increase in local currency)
-- Asia Pacific increased by 57.0% (75.3% increase in local currency)
-- The gross margin increased to 70.7% in Q2 2014, compared with a gross
margin of 66.0% in Q2 2013
-- EBITDA increased by 68.5% to DKK 893 million for the quarter, corresponding
to an EBITDA margin of 35.1%, compared with an EBITDA margin of 27.4% in Q2
2013
-- Net profit for the quarter was DKK 662 million, compared with a net profit
of DKK 431 million in Q2 2013
-- Free cash flow was DKK 547 million in Q2 2014 compared with DKK 102 million
in Q2 2013
-- During Q2 2014, PANDORA bought back 1,744,863 own shares at a total value
of DKK 658 million as part of the on-going DKK 2.4 billion share buyback
programme.

UPGRADED FINANCIAL GUIDANCE FOR 2014
Based on the strong performance in the first half of the year, PANDORA has
decided to increase revenue guidance for 2014 to more than DKK 11.0 billion
(previously guided more than DKK 10.5 billion). The EBITDA margin expectation
is unchanged, and is expected to be approximately 35%.

                       FY 2014  FY 2013
                  New guidance   actual

-------------------------------------------

Revenue, DKK billion >11.0 9.0
EBITDA margin approx. 35% 32.0%
CAPEX, DKK million approx. 550 490
Effective tax rate approx. 20% 19%

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PANDORA plans to continue to expand the store network and now expects to add
more than 275 new concept stores in 2014 compared to previously expected more
than 225. A proportionally higher share of owned and operated (O&O) stores is
expected to be opened in the second half, compared to last year.

In connection with the Q2 2014 results, CEO Allan Leighton said:
“We have had another exceptionally strong quarter with positive progress across
all regions. The growth was primarily driven by our new markets in Europe and
Asia as well as by the UK. The US is generally performing well except for the
Northeast where our plan to refresh the network has begun. All product
categories had good growth, and Rings particularly so, with revenue from that
category increasing 200% in the quarter.”

CONFERENCE CALL
A conference call for investors and financial analysts will be held today at
10.00 CET and can be accessed online at www.pandoragroup.com. The presentation
for the call will be available on the website one hour before the call.

The following numbers can be used by investors and analysts:
DK: +45 3272 8018
UK (International): +44 (0) 1452 555 131
US: +1 866 682 8490

To help ensure that the conference begins in a timely manner, please dial in 5
minutes prior to the scheduled starting time. Participants will have to quote
confirmation code 67998331 when dialling into the conference.

ABOUT PANDORA
PANDORA designs, manufactures and markets hand-finished and modern jewellery
made from genuine materials at affordable prices. PANDORA jewellery is sold in
more than 80 countries on six continents through approximately 10,000 points of
sale, including more than 1,200 concept stores.

Founded in 1982 and headquartered in Copenhagen, Denmark, PANDORA employs more
than 9,000 people worldwide of whom approximately 7,000 are located in
Gemopolis, Thailand, where the company manufactures its jewellery. PANDORA is
publicly listed on the NASDAQ OMX Copenhagen stock exchange in Denmark. In
2013, PANDORA’s total revenue was DKK 9.0 billion (approximately EUR 1.2
billion). For more information, please visit www.pandoragroup.com.

CONTACT
For more information, please contact:

INVESTOR RELATIONS MEDIA RELATIONS
Morten Eismark Jakob Risom Langelund
VP Group Investor Relations Press Officer
Phone +45 3673 8213 Phone +45 3673 0634
Mobile +45 3045 6719 Mobile +45 6165 6540
Magnus Thorstholm Jensen
Investor Relations Officer
Phone +45 4323 1739
Mobile +45 3050 4402