Dividend policy

Cash distribution of around DKK 3 billion to shareholders in 2020
For 2020, the Board of Directors proposes a total cash return to shareholders amounting to DKK 3 billion despite of significant restructuring costs. This is around 9% of the company’s market cap as of 31 December 2019.

The Board of Directors proposes a dividend of DKK 9 per share (DKK 0.9 billion) and a share buyback programme of up to DKK 2.1 billion.

Annual Commitment

(DKK billion)

FY 2020
Proposed

FY 2019
Proposed

FY 2018
Actual

FY 2017
Actual

FY 2016
Actual

Dividend (ordinary + interim)

0.9

1.8

1.9

4.0

1.5

Nominal dividend per share, DKK

9

18

18

36

13

Share buy-back programme

2.1

2.2

4.0

1.8

4.0

Total cash return

3.0

4.0

5.9

5.8

5.5


2020 dividend of DKK 9 per share
In 2019, Pandora paid out an ordinary dividend of DKK 9 per share and an interim dividend of DKK 9 per share in relation to the H1 2019 results. In total, Pandora paid out DKK 18 per share (DKK 1.8 billion) in 2019.

Based on the financial results of 2019, the Board of Directors proposes to return a total of around DKK 0.9 billion in dividend during 2020 (DKK 9 per share).

2019 share buyback programme of DKK 2.2 billion
In connection with the Annual Report 2018, Pandora announced its intention to buy back own shares of up to DKK 2.2 billion in a share buyback programme from 13 March 2019 to 19 March 2020. In 2019, a total of 6,645,636 shares have been bought back, corresponding to a transaction value of around DKK 1.8 billion. The purpose of the programme is to reduce Pandora’s share capital and to meet obligations arising from employee incentive programmes. At the Annual General Meeting 2020, the Board of Directors will propose to reduce the company's share capital by a nominal amount of DKK 8,000,000 by cancellation of 8,000,000 own shares of DKK 1, equal to 8% of the company's total share capital.

2020 share buyback programme of DKK 2.1 billion proposed
The Board of Directors proposes to launch a new share buyback programme in 2020, under which Pandora will buy back own shares to a maximum consideration of up to DKK 2.1 billion. The shares acquired during the programme will as in previous years primarily be used to reduce Pandora’s share capital and to meet obligations arising from employee incentive programmes. The share buyback programme will run from the Annual General Meeting (11 March 2020) to 5 March 2021 at the latest.