• Group revenue in 2015 was DKK 16,737 million compared with DKK 11,942 million in 2014, corresponding to an increase of 40.2% or 28.9% in local currency:
  • Americas increased by 31.8% (14.6% increase in local currency)
  • Europe increased by 42.3% (37.1% increase in local currency)
  • Asia Pacific increased by 58.0% (45.1% increase in local currency)
  • Revenue from concept stores was 62.1% of revenue and increased 54.1% compared with 2014
• Gross margin was 72.9% in 2015 compared with 70.5% in 2014
• EBITDA increased by 44.7% to DKK 6,214 million in 2015, corresponding to an EBITDA margin of 37.1%, compared with 36.0% in 2014
• EBIT increased by 42.8% to DKK 5,814 million in 2015, corresponding to an EBIT margin of 34.7% compared with 34.1% in 2014
• Net profit increased by 18.6% to DKK 3,674 million in 2015, compared with a net profit of DKK 3,098 million in 2014
• Free cash flow was DKK 2,449 million in 2015, (or DKK 3,444 million excluding tax and interest expenses of DKK 995 million relating to settlement of transfer pricing audit) compared with DKK 3,868 million in 2014, a decrease of 36.7%
• For the financial year 2015, the Board of Directors proposes to increase the annual dividend by 44% compared with 2014, to a dividend of DKK 13 per share (approximately DKK 1.5 billion) and proposes cancellation of 5,240,348 shares equal to 4.28% of the total share capital
• Today PANDORA will initiate a new share buyback programme for up to DKK 4.0 billion to be executed during 2016 with the primary purpose of reducing the Company's share capital at the Annual General Meeting in 2017.

In connection with the full year results Anders Colding Friis, CEO of PANDORA, said:
"With 2015, another great year for PANDORA has come to an end. A strong top-line development added almost DKK 5 billion to our revenue, which was broadly distributed between geographic regions and product groups, all delivering double digit growth rates. Our focus on the branded store network continued and during the year we added almost 400 new concept stores globally. The strong top-line development was also reflected in our EBITDA, which increased more than 40%."

FINANCIAL GUIDANCE FOR 2016

	FY 2016 Guidance	FY 2015 Actual
Revenue, DKK billion	>19	16.7
EBITDA margin	>37%	37.1%
CAPEX, DKK million	Approx. 1,000	1,109
Effective tax rate	Approx. 21%	31.3%

In 2016, PANDORA will again focus on driving like-for-like growth in existing stores, and expanding the store network in newer as well as in more penetrated markets. Revenue is expected to increase to more than DKK 19 billion, with existing stores expected to contribute roughly one third of the growth, and expansion of the store network, contributing the remaining two thirds. Assuming current exchange rates, PANDORA expects a full year headwind effect from currencies on revenue of around 3% compared with 2015.

The EBITDA margin in 2016 is expected to be more than 37%. For 2016, the EBITDA margin is anticipated to be positively impacted by lower commodity prices. However, this is expected to be offset by an increase in production complexity. Furthermore, the EBITDA margin is expected to be positively impacted by increasing leverage on costs in PANDORA's more developed markets, but partially offset by PANDORA's expansion plans primarily in Asia. Due to costs, primarily related to the expansion in Asia, the EBITDA margin in the second half of the year is expected to be higher than in the first half.

CAPEX for the year is expected to be approximately DKK 1,000 million. The expected level of investments includes development of the crafting facilities in Thailand, investments in PANDORA's distribution network, including the announced accelerated expansion in China and Japan, as well as continued elevated IT investments. CAPEX in 2017 is expected to stay at an elevated level similar to 2016, due to continued investments in the aforementioned areas.

The effective tax rate for 2016 is expected to be approximately 21%, which compares to an effective tax rate of 31.3% in 2015 (or 22.2% excluding the additional tax expenses related to the settlement with the Danish Tax Authorities in May 2015, including the impact on the tax position of other group entities). The decrease is primarily due to the reduction of the Danish corporate tax rate from 23.5% in 2015 to 22% in 2016.

In 2016, PANDORA plans to continue to expand the store network and expects to add more than 250 new concept stores during the year of which roughly 60% are expected to be opened in the Europe region, 20% in Americas and 20% in Asia Pacific.

Expectations are based on the foreign exchange rates at the day of announcement.

DIVIDEND
As previously communicated, the Board of Directors aims to increase the nominal dividend per share annually. Following a strong financial performance in 2015, the Board of Directors proposes a dividend of DKK 13 per share for the year, corresponding to an increase of 44% compared with last year, and equivalent to DKK 1.5 billion, assuming 5,240,348 shares are cancelled at the Annual General Meeting in March 2016.

PANDORA shares are traded ex-dividend the day after the Annual General Meeting, which will be held on 16 March 2016. The dividend will be paid automatically via VP Securities on 21 March 2016.

SHARE BUYBACK PROGRAMME FOR 2015
In the 2014 Annual Report, PANDORA announced its intention to buy back own shares of up to DKK 3.9 billion during 2015 in a share buyback programme. As of 31 December 2015, a total of 5,384,673 shares had been bought back, corresponding to a transaction value of DKK 3.9 billion and an average purchase price of DKK 723.8. As of 31 December 2015, PANDORA owned a total of 6,063,915 treasury shares, corresponding to 4.96% of the share capital. The purpose of the programme is to reduce PANDORA's share capital and to meet obligations arising from employee share option programmes. As of 31 December 2015, the total potential obligation amounted to 823,567 shares due to the annual allocation of the Company's employee share option programme.

At the Annual General Meeting 2016, The Board of Directors will propose that the Company's share capital be reduced by a nominal amount of DKK 5,240,348 by cancellation of 5,240,348 own shares of DKK 1, equal to 4.28% of the Company's total share capital.

NEW SHARE BUYBACK PROGRAMME FOR 2016
The Board of Directors of PANDORA has decided to launch a share buyback programme in 2016, under which PANDORA expects to buy back own shares to a maximum consideration of DKK 4.0 billion, compared with DKK 3.9 billion in 2015. The share buyback programme is subject to an approval of an extension of the current authorisation to acquire own shares on behalf of the Company at the Annual General Meeting on 16 March 2016. Under the current authorisation approved at the Annual General Meeting in 2015 and applicable from 19 March 2015, the Company is allowed to acquire own shares with a total nominal value of up to 10% of PANDORA's share capital. PANDORA has bought back own shares corresponding to 3.8% of the share capital under this authorisation.

The Board of Directors intends to propose to PANDORA's shareholders at the Annual General Meeting in 2017 that PANDORA's share capital be reduced by shares purchased under the programme. PANDORA may also use shares purchased under the programme to meet obligations arising from employee share option programmes issued in 2016. The total obligation for the 2016 programme is expected to be approximately 100,000 shares.

The share buyback programme is implemented in accordance with the provisions of the European Commission's regulation no. 2273/2003 of 22 December 2003 (‘safe harbour'), which protects listed companies against violation of insider legislation in connection with share buybacks. The programme will end no later than 31 December 2016.

PANDORA has appointed Nordea Bank Danmark A/S (Nordea) as Lead Manager of the programme. Nordea will, under a separate agreement with the Company, buy back shares on behalf of PANDORA and make trading decisions in respect of PANDORA shares independently of and without influence from PANDORA.

The programme will be implemented under the authorisation and the following framework:

• The maximum total consideration for PANDORA shares bought back in the period of the programme is DKK 4.0 billion
• The programme will end no later than 31 December 2016
• The maximum number of shares to be bought per daily market session will be the equivalent to 25% of the average daily volume of shares in the Company traded on NASDAQ Copenhagen during the preceding 20 business days
• Shares cannot be purchased at prices higher than the two following prices:
  1. The price of the latest independent trade
  2. The price of the highest independent bid on NASDAQ Copenhagen

PANDORA may terminate the programme at any time. In the event such decision is taken, PANDORA shall give notice thereof, and Nordea shall consequently no longer be entitled to buy shares on behalf of PANDORA.

On a weekly basis the Company will issue an announcement in respect of transactions made under the programme.

ANNUAL REPORT 2015
PANDORA's Annual Report 2015 has been released today and is available for download in the investor section of www.pandoragroup.com.

CONFERENCE CALL
A conference call for investors and financial analysts will be held today at 10:00 a.m. 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) 20 3427 1906
US: +1 646 254 3366

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 "PANDORA" when dialling into the conference.

ABOUT PANDORA
PANDORA designs, manufactures and markets hand-finished and contemporary jewellery made from high-quality materials at affordable prices. PANDORA jewellery is sold in more than 100 countries on six continents through approximately 9,300 points of sale, including around 1,800 concept stores.

Founded in 1982 and headquartered in Copenhagen, Denmark, PANDORA employs more than 16,700 people worldwide of whom approximately 11,000 are located in Gemopolis, Thailand, where the company manufactures its jewellery. PANDORA is publicly listed on the NASDAQ Copenhagen stock exchange in Denmark. In 2015, PANDORA's total revenue was DKK 16.7 billion (approximately EUR 2.2 billion).

CONTACT
For more information, please contact:

INVESTOR RELATIONS                             Morten Raunholt Eismark                                              VP Group Investor Relations                          Phone +45 3673 8213                                     Mobile +45 3045 6719	MEDIA RELATIONS Kristian Lysgaard Director, Group Communications Phone +45 4323 1774 Mobile +45 2556 8561
Magnus Thorstholm Jensen Senior Investor Relations Officer Phone +45 4323 1739 Mobile +45 3050 4402