INTERIM REPORT FOR Q3 2014: REVENUE INCREASES 26% DRIVEN BY ALL REGIONS - EBITDA INCREASES BY 33.8% WITH EBITDA MARGIN OF 35.9%

• Group revenue in Q3 2014 was DKK 2,845 million, an increase of 26.2% or 24.6% in local currency, compared with Q3 2013:
  • Americas increased by 17.7% (17.8% increase in local currency)
  • Europe increased by 30.4% (27.4% increase in local currency)
  • Asia Pacific increased by 43.2% (40.5% increase in local currency)
  • Revenue from concept stores was 55.9% of revenue and increased 43.0%

• The gross margin increased to 70.3% in Q3 2014, compared with a gross margin of 66.2% in Q3 2013

• EBITDA increased by 33.8% to DKK 1,020 million for the quarter, corresponding to an EBITDA margin of 35.9%, compared with an EBITDA margin of 33.8% in Q3 2013

• Net profit for the quarter was DKK 725 million, compared with a net profit of DKK 612 million in Q3 2013

• Free cash flow was DKK 567 million in Q3 2014 compared with DKK 363 million in Q3 2013

• During Q3 2014, PANDORA bought back 1,944,341 own shares at a total value of DKK 817 million as part of the on-going DKK 2.4 billion share buyback programme. For the first nine months of the year, 4,591,734 shares have been bought back, corresponding to a transaction value of DKK 1,792 million.
  

UPGRADED FINANCIAL GUIDANCE FOR 2014
Based on the strong performance in the third quarter of the year, PANDORA has decided to increase revenue guidance for 2014 to more than DKK 11.5 billion (previously guided more than DKK 11.0 billion). The EBITDA-margin is expected to be more than 35%, against previously guided approximately 35%. Furthermore, CAPEX is now expected to be approximately DKK 500 million (previously guided approximately DKK 550 million), primarily due to timing of a planned expansion of the production facilities in Thailand into 2015.

PANDORA plans to continue to expand the store network and now expects to add more than 300 new concept stores in 2014 compared to previously expected more than 275. A proportionally higher share of owned and operated (O&O) stores is expected to be opened in the fourth quarter, compared to the same period last year.

In connection with the Q3 2014 results, CEO Allan Leighton said:
"We are pleased with another strong performance, with our highest revenue and EBITDA in any quarter to date. All regions continued to perform well, driven by expansion of the store network, improving store execution, and continuously relevant products. In addition, the result of our focus on rings is particularly pleasing, with revenue for the category almost doubling 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 98099271 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 9,800 points of sale, including more than 1,300 concept stores.

Founded in 1982 and headquartered in Copenhagen, Denmark, PANDORA employs more than 11,000 people worldwide of whom approximately 7,800 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.