INTERIM REPORT FOR Q3 2011

No. 44
COMPANY ANNOUNCEMENT
22 November 2011

INTERIM REPORT FOR Q3 2011

GROUP REVENUE WAS DKK 1,569 MILLION. EBITDA MARGIN WAS 34.2%. NET PROFIT WAS DKK 341 MILLION.

• Group revenue declined by 12.2% in Q3 2011 (8.1% decline in local currency) to DKK 1,569 million compared to DKK 1,788 million in Q3 2010:
• Americasincreased by 4.1% (13.0% increase in local currency)
• Europedeclined by 28.6% (27.1% decline in local currency)
• Asia Pacific declined by 1.0% (3.0% decline in local currency)

• Gross margin increased to 73.6% in Q3 2011 (compared to a gross margin of 73.2% in Q3 2010)

• EBITDA margin was 34.2% in Q3 2011 (compared to an EBITDA margin of 45.1% in Q3 2010), EBITDA decreased by 33.6% to DKK 536 million

• EBIT margin was 32.2% in Q3 2011 (compared to an EBIT margin of 41.6% in Q3 2010), EBIT decreased by 31.9% to DKK 506 million

• Reported net profit decreased by 41.3% to DKK 341 million in Q3 2011 (compared to a net profit of DKK 581 million in Q3 2010)

• Free cash flow was DKK 37 million in Q3 2011 (compared to DKK 30 million in Q3 2010)

Marcello Bottoli, interim CEO, said:
"Our performance in Q3 2011 has been far from satisfactory. However, we have implemented or are in the process of implementing the corrective actions identified in our commercial, product and marketing areas as well as in our organisation that we communicated to the market on 2 August 2011. Based on results year to date and our plans for the key Christmas period, we expect to meet the full year guidance communicated in August.Finally, the strategic review we are performing with the help of external consultants is approaching its end and we plan to present the final assessment as well as a complete update on the implementation of operational changes and 2012 guidance at the time of 2011 full year earnings release in February 2012."

UNCHANGED FINANCIAL OUTLOOK FOR 2011
For 2011, PANDORA continues to expect revenue in line with 2010 and an EBITDA margin in the low thirties. We expect CAPEX to amount to approximately DKK 230 million and the effective tax rate to be approximately 18%.

CONFERENCE CALL
A conference call for investors and financial analysts — hosted by interim CEO Marcello Bottoli and CFO Henrik Holmark — will be held today at 10.00 CET and can be accessed from our website:www.pandoragroup.com. The corresponding presentation will be available on the website one hour before the call.

The following numbers can be used by investors and analysts:
DK: +45 32 72 76 25
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 code29675568when 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 65 countries on six continents through 10,000 points of sale, including more than 550 PANDORA branded Concept stores.

Founded in 1982 and headquartered in Copenhagen, Denmark, PANDORA employs over 5,000 people worldwide of whom 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: