INTERIM REPORT FOR Q2 2013 - SECOND QUARTER REVENUE INCREASES 53.3% DRIVEN BY STRONG PERFORMANCE ACROSS ALL REGIONS

COMPANY ANNOUNCEMENT - No. 106

• Group revenue in Q2 2013 was DKK 1,931 million, an increase of 53.3% compared to Q2 2012:
  • Americas increased by 52.1% (54.3% increase in local currency)
  • Europe increased by 59.3% (59.8% increase in local currency)
  • Asia Pacific increased by 43.5% (42.4% increase in local currency)

• Gross margin decreased to 66.0% in Q2 2013 (compared to a gross margin of 67.9% in Q2 2012)

• EBITDA increased by 140.9% to DKK 530 million for the quarter, corresponding to an EBITDA margin of 27.4% (compared to an EBITDA margin of 17.5% in Q2 2012)

• EBIT was DKK 483 million for the quarter, an increase of 179.2%, corresponding to an EBIT margin of 25.0% (compared to an EBIT margin of 13.7% in Q2 2012)

• Net profit for the quarter was DKK 431 million (compared to a net profit of DKK 63 million in Q2 2012)

• Free cash flow was DKK 102 million in Q2 2013 (compared to DKK 91 million in Q2 2012)

• During Q2 2013, PANDORA bought back 1,149,683 shares at a total value of DKK 210 million. In 2013, PANDORA has bought back shares worth DKK 271 million of the on-going DKK 700 million share buyback programme
  

FINANCIAL GUIDANCE FOR 2013
PANDORA expects revenue for 2013 to be approximately DKK 8 billion and expects an EBITDA margin of approximately 27%.

PANDORA expects CAPEX to be around DKK 400 million. The CAPEX figure excludes the one-off payment of DKK 190 million related to the purchase of IP rights from Trollbeads A/S in Q1 2013.

The effective tax rate is expected to be approximately 19%.

During 2013 PANDORA expects to open approximately 175 Concept stores.

CEO Allan Leighton said:

"As we announced on 30 July, when we increased the financial guidance for 2013, the solid performance reported for Q1 2013 has continued across all major markets in the second quarter, with strong sales from newly launched products, high replenishment rates and healthy sell-out from the Concept stores.

Our strategy of delivering affordable luxury is becoming increasingly relevant, and although there are still many areas in which we can improve we are pleased with our progress."

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

T o 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 25754822 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 70 countries on six continents through approximately 10,300 points of sale, including approximately 950 Concept stores.

Founded in 1982 and headquartered in Copenhagen, Denmark, PANDORA employs over 6,900 people worldwide of whom 4,900 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 2012, PANDORA's total revenue was DKK 6.7 billion (approximately EUR 900 million). For more information, please visit www.pandoragroup.com.

CONTACT
For further queries, please contact:

INVESTOR RELATIONS

Morten Eismark
VP Group Investor Relations
Phone +45 3673 8213
Mobile +45 3045 6719

Magnus Thorstholm Jensen
Investor Relations Officer
Phone +45 4323 1739
Mobile +45 3050 4402

MEDIA RELATIONS

Jakob Risom Langelund
Press Officer
Phone +45 3673 0634
Mobile +45 6165 6540