INTERIM REPORT FIRST QUARTER 2017: PANDORA REPORTS 9% REVENUE GROWTH AND CONTINUED STRONG PROFITABILITY

FINANCIAL HIGHLIGHTS

• Group revenue in Q1 2017 increased by 9% (8% in local currency) to DKK 5,159 million compared with Q1 2016, in line with PANDORA's earlier communicated expectations of single digit growth in Q1 2017
  • Revenue from PANDORA owned retail increased 39% (39% in local currency) and represented 38% of Group revenue. Like-for-like sales growth for PANDORA owned concept stores was 8%
  • Revenue from EMEA increased 5% (9% in local currency) driven by good performance in France and Italy, however impacted by the depreciation of the British pound
  • Revenue from Americas decreased 5% (-9% in local currency), including a negative impact from network restructuring in the US
  • Strong performance in important growth markets in Asia Pacific with revenue up 44% (40% in local currency). Asia Pacific is now 25% of Group revenue
  • Full jewellery brand ambition on track as revenue from Rings, Earrings and Necklaces and Pendants all grew more than 40% with the three categories now representing 25% of Group revenue
• Gross margin was 73.3% (Q1 2016: 74.6%) impacted by headwinds from currency and product mix
• EBITDA increased 7% to DKK 1,879 million, EBITDA margin was 36.4% (Q1 2016: 37.1%)
• Free cash flow was DKK 1,182 million (Q1 2016: DKK 1,356 million)
• During the quarter, PANDORA returned DKK 1,332 million to shareholders through an ordinary dividend of DKK 9 per share (corresponding to DKK 1,007 million) and share buyback of DKK 325 million
• Related to the Q1 2017 results, PANDORA will pay out a quarterly dividend of DKK 9 per share to shareholders (corresponding to DKK 1,006 million)
• Full year guidance remains unchanged including Group revenue of DKK 23-24 billion and EBITDA margin of approximately 38%

Commenting on the results, Anders Colding Friis, CEO of PANDORA, said:
"We are satisfied by this quarter's results, having delivered good sales growth, including 8% like-for-like growth in our PANDORA owned concept stores, and continued strong profitability.

We are very pleased with the performance in our important growth markets, with Italy, France and China continuing to show strong sales growth. Additionally, some of our most developed markets continue to perform, with revenue from Australia up 27%. However, the retail climate in the US remains difficult, which was reflected in our performance in the US for the quarter.

We continue to make progress towards our ambition to become a full jewellery brand, with revenue from Rings, Earrings and Necklaces and Pendants growing combined 48% for the quarter."

CONFERENCE CALL
A conference call for investors and financial analysts will be held today at 11.00 CET and can be joined 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 38 48 75 13
UK (International): +44(0) 203 427 1906
US: +1 646 254 3366

To participate, please quote confirmation code "PANDORA" when dialling into the conference.

FINANCIAL CALENDAR 2017

16 May 2017 PANDORA shares are traded ex-dividend
18 May 2017 Payment of quarterly dividend
25 May 2017 Payment of quarterly dividend for ADR holders

8 August 2017 Interim Report for the first six months of 2017
15 August 2017 PANDORA shares are traded ex-dividend
17 August 2017 Payment of quarterly dividend
24 August 2017 Payment of quarterly dividend for ADR holders

7 November 2017 Interim Report for the first nine months of 2017
14 November 2017 PANDORA shares are traded ex-dividend
16 November 2017 Payment of quarterly dividend
23 November 2017 Payment of quarterly dividend for ADR holders

CONTACT
For more information, please contact: