Dividend policy

Capital structure policy and cash distribution

At the end of March 2021, Pandora’s leverage continued to be in the low end of the capital structure policy at 0.6x NIBD to EBITDA. The capital structure policy remains unchanged at 0.5-1.5x NIBD to EBITDA. The leverage would, everything else being equal and in the absence of cash distribution, likely be close to zero at the end of 2021. At the Annual General Meeting on 11 March 2021, Pandora’s shareholders granted the authority to the Board of Directors to pass one or more resolutions to distribute extraordinary dividends of up a total of DKK 15 per share. Given the strong performance in Q1, the ample liquidity and low leverage in combination with the successful refinancing of its Revolving Credit Facilities, Pandora has decided to re-initiate distributions to its shareholders. During the next three months, up to DKK 1 billion will be distributed through a combination of extraordinary dividend of DKK 5 per share, that will be paid on 18 May 2021, and share buyback of up to DKK 500 million.

Assuming no significant worsening of COVID-19, it is Pandora’s intention to initiate further cash distribution programmes in Q3 and Q4 2021.

Annual Commitment

(DKK billion)

FY 2021
Announced

FY 2020
Actual

FY 2019
Actual

FY 2018
Actual

FY 2017
Actual

Dividends in total

0.5

0.8

1.8

1.9

4.0

Nominal dividend per share, DKK

5.0

9.0

18.0

18.0

36.0

Share buy-back programme

0.5

-

2.2

4.0

1.8

Total cash return

1.0

0.8

4.0

5.9

5.8