Dividend policy

Capital structure policy and cash distribution

At the end of June 2021, Pandora’s leverage was only 0.4x NIBD to EBITDA and thereby just below the range in our capital structure policy of 0.5-1.5x. In May 2021, Pandora re-initiated cash distributions with a total of DKK 1 billion which was paid out from May to August (Pandora distributed an extraordinary dividend of DKK 5 per share in May and from May to August, Pandora repurchased DKK 0.5 billion worth of shares). At the same time, Pandora announced the intention to, all else equal, distribute a further DKK 1 billion per quarter in each of Q3 and Q4.

Given the continued strong performance in Q2, the ample liquidity and low leverage, Pandora has decided to continue 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 31 August 2021, and share buyback of up to DKK 0.5 billion.

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