PANDORA ANNOUNCES ITS FINANCIAL RESULTS FOR 2010

No. 22
COMPANY ANNOUNCEMENT
15 March 2011

PANDORA ANNOUNCES ITS FINANCIAL RESULTS FOR 2010

REVENUE AND VOLUME GREW BY 92.6 % AND 38.8% RESPECTIVELY - DRIVEN BY STRONG REVENUE GROWTH ACROSS ALL REGIONS AND JEWELLERY CATEGORIES. NET PROFIT UP BY 86.2%

• Revenue increased by 92.6% to DKK 6,666 million compared to DKK 3,461 million in 2009

• Americas grew by 87.0% and constituted 43.7% of total sales
• Europe grew by 136.9% and constituted 42.9% of total sales
• Asia Pacific grew by 28.3% and constituted 13.4% of total sales
  
• Revenue from Charms grew by 82.5% and Silver & Gold charm bracelets revenue grew 50.3%
• Rings grew by 281.8% and Other jewellery grew by 185.2%. Together these two product groups represented 18.7% of revenue in 2010 – up from 11.6% in 2009

• Gross margin was 70.9% - slightly below the gross margin of 71.4% in 2009, primarily due to increase in commodity prices not being entirely offset by price increases

• EBITDA increased by 70.7% to DKK 2,684 million resulting in an EBITDA margin of 40.3% compared to 45.4% in 2009, primarily driven by increased commodity prices, structural changes, investments in marketing as well as an IPO bonus of DKK 91 million paid to all employees in Q4 2010. Adjusted for the IPO bonus, the EBITDA margin was 41.6%.

• EBIT increased by 69.7% to DKK 2,416 million resulting in an EBIT margin of 36.2%, negatively impacted by amortisation of DKK 183 million related to acquired distribution rights in PANDORA Jewellery Central Western Europe (“PANDORA CWE”)

• Net profit increased by 86.2% to DKK 1,871 million

• For the financial year 2010, the board of directors proposes a dividend of 35% of profit for the year after tax, corresponding to DKK 5 per share

• At the end of December 2010, PANDORA employed 4,985 people worldwide and sold its jewellery and other branded products through 10,618 points of sale (PoS) in more than 55 countries on six continents

Mikkel Vendelin Olesen, PANDORA’s Chief Executive Officer, said: “2010 was a remarkable year in PANDORA’s history, and I am both proud and very satisfied with the achievements we have accomplished together with our partners. While entering new markets that will contribute to our long-term development, we experienced strong growth in our existing markets and across all product categories. We increased branded sales and strengthened the awareness and perception of the PANDORA brand among our target audience. And we successfully integrated new businesses into the Group as well as new systems and procedures to prepare our organization for future growth. At the same time we listed the company on the stock exchange without losing momentum in our daily operations.”

FINANCIAL OUTLOOK FOR 2011
For 2011, PANDORA expects a revenue increase of no less than 25% and an EBITDA margin of minimum 40%.

We expect CAPEX to account for approximately 3% of total Group revenue and the effective tax rate to be approximately 18%.

ANNUAL REPORT 2010 AND Q4 FINANCIAL STATEMENT
Please notice that a full version of PANDORAs Annual Report 2010 has been released today and is available for download in the investor section of www.pandoragroup.com

Please also find, as appendix to this release, financial highlight for Q4 2010.

CONFERENCE CALL
The conference call for investors and financial analysts will be held today at 15.00 CET and can be accessed from our website: www.pandoragroup.com. The corresponding presentation will be available on the website three hours before the call.

The following numbers can be used by investors and analyst:
DK: +45 3272 7625
UK (International): +44 (0) 1452 555 566
US: +1 631 510 7498

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 50232838 when dialling into the conference.

ABOUT PANDORA
PANDORA designs, manufactures and markets hand-finished and modern jewellery made from genuine materials and at affordable prices. The PANDORA jewellery is sold in more than 55 countries on six continents through over 10,000 points of sale, including more than 420 PANDORA branded concept stores.

Founded in 1982 and headquartered in Copenhagen, Denmark, PANDORA employs over 5,000 people worldwide of whom more than 3,600 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 2010, PANDORA’s total revenue was DKK 6.7 billion (approximately EUR 895 million). For more information, please visit www.pandoragroup.com.

CONTACT
For further queries, please contact: