INTERIM REPORT FOR Q3 2013 - REVENUE GROWTH CONTINUED WITH IMPROVED PROFITABILITY ACROSS ALL REGIONS

COMPANY ANNOUNCEMENT - No. 127

• Group revenue in Q3 2013 was DKK 2,255 million, an increase of 25.7% or 32.9% in local currency, compared to Q3 2012:
  • Americas increased by 7.6% (14.9% increase in local currency)
  • Europe increased by 46.5% (50.5% increase in local currency)
  • Asia Pacific increased by 37.7% (57.7% increase in local currency)

• Gross margin increased to 66.2% in Q3 2013, compared to a gross margin of 64.1% in Q3 2012

• EBITDA increased by 51.5% to DKK 762 million for the quarter, corresponding to an EBITDA margin of 33.8%, compared to an EBITDA margin of 28.0% in Q3 2012

• EBIT was DKK 708 million for the quarter, an increase of 52.9%, corresponding to an EBIT margin of 31.4%, compared to an EBIT margin of 25.8% in Q3 2012

• Net profit for the quarter was DKK 612 million, compared to a net profit of DKK 380 million in Q3 2012

• Free cash flow was DKK 363 million in Q3 2013, compared to DKK -88 million in Q3 2012

• During Q3 2013, PANDORA bought back 1,014,887 shares at a total value of DKK 220 million. In 2013, PANDORA has bought back shares worth DKK 491 million of the on-going DKK 700 million share buyback programme

FINANCIAL GUIDANCE FOR 2013
PANDORA expects revenue for 2013 to be approximately DKK 8.6 billion and expects an EBITDA margin of approximately 30%.

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 as well as the investment related to the acquisition of the distributor in Brazil.

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

During 2013 PANDORA expects to open approximately 195 Concept stores.

In connection with the Q3 2013 results, CEO Allan Leighton said:

"We are pleased with the third quarter result, which confirms that the business has re-established a base platform to build from. Third quarter was also the last quarter with the easy comparative figures created by last years' stock balancing programme. This obviously means that we are now entering a phase with more modest headline growth, but still underpinned by strong operating performance."

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 87940111 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 1,000 Concept stores.

Founded in 1982 and headquartered in Copenhagen, Denmark, PANDORA employs over 7,300 people worldwide of whom 5,200 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: