Dividend policy

Capital structure policy and cash distribution

At the end of 2023, in line with expectations, Pandora’s leverage was 1.1x NIBD to EBITDA, consistent with being broadly in line with the mid-point of the capital structure policy of 0.5x-1.5x. The increase leverage of 0.3x vs. the end of 2022 at 0.8x reflects the decision to increase leverage from the low end of the capital structure range to around the mid-point.

Pandora aims for a leverage ratio of approximately 1.2x NIBD to EBITDA by the end of 2024. In line with the usual seasonality of the business, leverage will increase through the year, peaking in Q3 2024, and then fall back by year end.

Pandoras has paid out DKK 6.4 billion to shareholders in 2023, of which DKK 1.4 billion came from an ordinary dividend of DKK 16 per share and DKK 5.0 billion was distributed via share buybacks (DKK 0.4 billion related to the 2022 programme ending in early February 2023). For 2024, Pandora proposes a total cash distribution to shareholders of DKK 5.5 billion. Within this, Pandora proposes to pay a dividend of DKK 18 per share which represents an absolute amount of DKK 1.5 billion and a new share buyback amounting to DKK 4.0 billion which will commence on 8 February 2024 and be completed no later than 31 January 2025.