Q3 2O21
INTERIM FINANCIAL REPORT
3 November 2021 | Company Announcement No. 660
2
HIGHLIGHTS
02 Executive Summary
03 Financial Highlights
4
BUSINESS UPDATE
04 Business Update
06 Revenue Review
12 Profitability
15 Cash Flow & Balance Sheet
16 Financial Guidance
20 Sustainability
21 Other Events
23 Contact
24
FINANCIAL STATEMENTS
24 Financial Statements
28 Accounting Notes
37 Disclaimer
Our equity story
Pandora is a cross-generational brand with unmatched recognition that gives a voice to
people’s loves. Our jewellery is crafted and hand-finished to the highest ethical and
environmental standards at our state-of-the-art crafting facilities in Thailand and made to
inspire women to collect, create and combine genuine jewellery at affordable prices.
Pandora’s strategy focuses on delivering sustainable and profitable revenue growth
building on the vast untapped opportunities within our existing core business. A strong
cash generation and attractive cash return will remain.
CONTENTS
Executive
summary
Financial
highlights
Business
update
Revenue
review
Profitability
Cash Flow &
Balance sheet
Financial
guidance
Sustainability
Other events
& Contact
Financial
statements
Accounting
notes
3 NOVEMBER 2021 | INTERIM FINANCIAL REPORT Q3 2021 | COMPANY ANNOUNCEMENT No. 660 | page
2 | 37
EXECUTIVE SUMMARY
Strong momentum continued in Q3
- Financial guidance for 2021 upgraded on 1 November
Highlights
• The strong momentum continued in Q3 2021 with 9% organic growth vs Q3 2019 (14% vs Q3 2020), even
though 5% of the physical store network was temporarily closed due to COVID-19
• High quality growth driven by Moments while further decreasing the level of promotions
• US remained strong with sell-out growth vs 2019 of 59%
• Strong rebound in key European markets as stores reopened, delivering 11% sell-out growth vs 2019
• Performance in Asia, including China, remains weak and heavily impacted by COVID-19
• Online continued the strong performance with 94% organic growth vs Q3 2019 (2% vs Q3 2020)
• Moments performed well, supported by the launch of wearing occasions, such as bag holders and key rings
• Pandora Brilliance – democratizing diamonds. Test launch in UK confirms the potential. Sequential global roll-
out to start in 2022
• Pandora ME was relaunched on 30 September with the aim to become a new platform
• Strong EBIT margin at 20.2% driven by operating leverage
• On 1 November, the guidance was upgraded to “organic growth of 18-20%” (previously 16-18%) and EBIT
margin of “24.0-24.5%” (previously 23-24%)
• Pandora continues distributions to shareholders in Q4. The planned distributions, from both dividends and
share buybacks, total DKK 5.5 billion from May 2021 to February 2022
Sell-out growth in Q3 2021 vs Q3 2019 was 9%, and in line with organic growth. While the underlying gross margin
remains strong, it is impacted in the quarter by one-off costs related to COVID-19 in Thailand as well as the higher
silver prices.
Alexander Lacik, President and CEO of Pandora, says:
“We are very pleased with the strong sell-out growth in the third quarter. US, our largest market continued the
outstanding performance, yet again ahead of market growth. Europe delivered solid growth numbers as the impact
from COVID-19 declined. The Asia Pacific region on the other hand was plagued by COVID-19 related impacts. Online
had another stellar quarter. We drove strong growth from our core Moments platform, partly fuelled by the latest
wearables initiative. Today, we are also excited to announce that Pandora Brilliance, our first collection of lab-created
diamond jewellery, will be sequentially rolled out globally from 2022. Finally, we can confirm that despite COVID-19
our production in Thailand and our ability to meet demand have not been significantly impacted.“
Financial overview (excl. Programme NOW restructuring costs in 2020)
Q3 2021
Q3 2020
9M 2021
9M 2020
FY 2020
Organic growth, %
14%
-5%
32%
-19%
-11%
Sell-out growth incl. temporarily closed stores, %
5%
-2%
27%
-20%
-12%
Sell-out growth incl. temporarily closed stores, % vs 2019
9%
n/a
4%
n/a
n/a
Revenue, DKK million
4,728
4,070
14,383
11,118
19,009
Gross margin, %
75.5%
78.1%
76.3%
77.0%
76.5%
EBIT margin, %
20.2%
17.2%
22.0%
12.3%
20.4%
Executive
summary
Financial
highlights
Business
update
Revenue
review
Profitability
Cash Flow &
Balance sheet
Financial
guidance
Sustainability
Other events
& Contact
Financial
statements
Accounting
notes
3 NOVEMBER 2021 | INTERIM FINANCIAL REPORT Q3 2021 | COMPANY ANNOUNCEMENT No. 660 | page
3 | 37
FINANCIAL HIGHLIGHTS
DKK million
Q3 2021
Q3 2020
9M 2021
9M 2020
FY 2020
FY 2021 guidance
Key financial highlights
Organic growth, %
14%
-5%
32%
-19%
-11%
”18-20%”
Organic growth, % vs 2019
1
9%
n/a
6%
n/a
n/a
Sell-out growth incl. temporarily closed stores, %
5%
-2%
27%
-20%
-12%
Sell-out growth incl. temporarily closed stores, %,
vs 2019
1
9%
n/a
4%
n/a
n/a
Gross margin
2
, %
75.5%
78.1%
76.3%
77.0%
76.5%
EBIT margin
2
, %
20.2%
17.2%
22.0%
12.3%
20.4%
”24-24.5”
Revenue
4,728
4,070
14,383
11,118
19,009
Earnings before interest, tax, depreciation and
amortisation (EBITDA)
1,393
1,045
4,571
2,103
4,999
Operating profit (EBIT)
957
467
3,161
472
2,684
Net financials
-137
-24
-250
-286
-190
Net profit for the period
635
343
2,256
144
1,938
Financial ratios
Revenue growth DKK, %
16%
-8%
29%
-20%
-13%
Revenue growth, local currency, %
15%
-5%
33%
-19%
-11%
Gross margin, %
75.5%
78.2%
76.3%
75.8%
75.6%
EBITDA margin, %
29.5%
25.7%
31.8%
18.9%
26.3%
EBIT margin, %
20.2%
11.5%
22.0%
4.2%
14.1%
Effective tax rate, %
22.5%
22.5%
22.5%
22.5%
22.3%
Equity ratio, %
40%
30%
40%
30%
37%
NIBD to EBITDA excl. restructuring costs, x
0.5
1.1
0.5
1.1
0.5
Return on invested capital (ROIC), %
48%
22%
48%
22%
25%
Cash conversion incl. lease payments, %
53%
98%
38%
239%
183%
Net working capital, % of last 12 months revenue
0.2%
0.0%
0.2%
0.0%
-7.6%
Stock ratios
Total pay-out ratio (incl. share buyback)
3
, %
211%
0%
93%
872%
65%
Dividend per share, DKK
4
0
0
0
0
-
Quarterly dividend per share, DKK
5
5
0
10
0
-
Earnings per share, basic, DKK
6.4
3.6
22.7
1.5
20.0
Earnings per share, diluted, DKK
6.4
3.6
22.6
1.5
19.9
Consolidated balance sheet
Total assets
18,173
18,932
18,173
18,932
19,984
Invested capital
11,141
12,544
11,141
12,544
10,540
Net working capital
50
5
50
5
-1,447
Net interest-bearing debt (NIBD)
3,819
6,862
3,819
6,862
3,151
Equity
7,322
5,682
7,322
5,682
7,389
Consolidated statement of cash flow
Cash flow from operating activities
885
776
2,155
1,913
5,975
Capital expenditure – total
201
117
426
367
491
Capital expenditure - property, plant and
equipment
96
97
195
291
369
Free cash flow incl. lease payments
502
457
1,195
1,128
4,908
1
Revenue performance compared with 2020 is heavily distorted by COVID-19, as both years are impacted by store closures. Pandora has therefore added two
supplementary growth KPI’s vs 2019 to provide a cleaner view on the performance: Organic growth vs 2019 and Sell-out growth vs 2019.
2
2020 numbers are excluding Programme NOW restructuring costs.
3
Excluding sale of Treasury shares amounting to DKK 1.8 billion in Q2 2020.
4
Proposed dividend per share for the year.
5
Paid quarterly dividend per share for the period.
Executive
summary
Financial
highlights
Business
update
Revenue
review
Profitability
Cash Flow &
Balance sheet
Financial
guidance
Sustainability
Other events
& Contact
Financial
statements
Accounting
notes
3 NOVEMBER 2021 | INTERIM FINANCIAL REPORT Q3 2021 | COMPANY ANNOUNCEMENT No. 660 | page
4 | 37
BUSINESS UPDATE
Strong third quarter driven by Moments - execution on the Phoenix strategy continues at high speed
Pandora delivered solid revenue performance in Q3 2021, with sell-out growth of 9% vs 2019. The strong growth was
supported by Pandora’s biggest platform, Moments, which delivered sell-out growth of 11% vs 2019. The
performance of Moments in Q3 2021 was supported by the launch of Wearing occasions (7 DV’s of keyrings and bag
holders), which delivered an incremental 2% share of business in the quarter. Furthermore, the Wearing occasions
helped reengage existing consumers with the brand, and Pandora saw a positive halo effect supporting among others
a strong Bracelets performance. A key pillar in Pandora’s Phoenix strategy is to grow the Moments platform.
Overall, Pandora’s Global Business Unit Moments and Collabs generated 11% sell-out growth vs Q3 2019 while Style
and Upstream Innovation generated 2% sell-out growth vs Q3 2019.
The solid revenue performance was further supported by Pandora’s biggest market, US, representing 28% of revenue
in Q3 2021 vs 22% in Q3 2020. US sell-out growth vs Q3 2019 ended at 59% in Q3 2021 and continued the
accelerated growth seen in Q1 and Q2 2021, fuelled by the stimulus packages. YTD 2021 sell-out growth vs 2019 in
US was 59%. US represents a strategic priority for Pandora, and the strong performance is encouraging. The long-
term aim is to double the US business vs 2019. Market data continue to suggest that Pandora US is growing faster
than the market. Pandora expects the unusual growth in the US to slow down in Q4.
Performance in China continued to be unsatisfactory as sell-out growth vs 2019 was -45% in Q3 2021. The
performance was negatively impacted by typhoons in July followed by a COVID-19 outbreak. Pandora’s Chinese
stores were formally open in Q3, but traffic into stores was down -50% vs 2020 as most stores are located in cities
impacted by the COVID-19 outbreak. In Q3 – the second quarter in a row - Pandora was ranked the number 1 brand
in fashion jewellery on Tmall, ahead of both local and global brands. The first significant steps in the repositioning of
the brand was planned for H2 2021. However following the negative traffic development seen in Q3 due to COVID-
19, Pandora has decided to postpone a part of the planned DKK 0.2 billion media investment into 2022 – investing
in media with the purpose of among others driving traffic to the stores makes little sense as long as street traffic is
impacted by COVID-19. Pandora now expects to invest approximately DKK 0.1 billion in 2021.
As COVID-19 restrictions eased in Europe, Pandora’s network was almost fully open during Q3 with no stores closed
in the key markets Italy, Germany, UK and France vs 32% in Q2 and 71% in Q1. The opening of stores had a positive
impact on performance, and the markets delivered sell-out growth vs 2019 of 11% in Q3 vs -6% in Q2 and -17% in
Q1.
Online continued the strong performance in Q3 2021 with organic growth of 94% vs 2019 (2% vs 2020) and an 18%
share of revenue in Q3 2021 (21% in Q3 2020 and 10% in Q3 2019). As stores reopen and consumers return, the
online share of revenue is starting to normalise, but it is encouraging to see online revenue stay at a high level.
During Q3 2021, both of Pandora’s production sites in Thailand were impacted by COVID-19. Pandora has taken
significant precautionary measures, and the impact on production in Q3 was limited. The financial guidance assumes
there will be no major disruptions to the supply chain and that production in Thailand and with key suppliers continues
during Q4.
Executive
summary
Financial
highlights
Business
update
Revenue
review
Profitability
Cash Flow &
Balance sheet
Financial
guidance
Sustainability
Other events
& Contact
Financial
statements
Accounting
notes
3 NOVEMBER 2021 | INTERIM FINANCIAL REPORT Q3 2021 | COMPANY ANNOUNCEMENT No. 660 | page
5 | 37
Pandora continues to roll out omni-channel capabilities while protecting brand equity
At the Capital Markets Day 14 September 2021, Pandora introduced a number of initiatives to drive a more seamless
and personalised customer experience. These include roll-out of omni-channel capabilities and a new store concept.
In Q3, Pandora has successfully introduced Click and Collect in Italy, France, Australia and Germany. Click and Collect
is today available in 95% of Pandora stores in the key markets. In Q4 2021, Pandora will open the first three stores
based on its new concept in China, Italy and UK. The stores are intended as pilots before a potential global roll out in
2022.
In Q3, Pandora continued to successfully reduce promotions vs both 2020 and 2019, another step in protecting
brand equity. As communicated in Q2, with less inventory to clear, summer sale (impacting both Q2 and Q3) was
substantially smaller than in 2020 and around 60% below 2019. In key markets, the number of promotional days in
physical stores was furthermore lowered to 24 days in Q3 2021 compared with 32 days in Q3 2019. Online, there
were 26 promotional days across key markets in Q3 2021, down from 36 days in Q3 2019.
Pandora’s strong brand position was maintained, and one third of all Google searches for branded jewellery in Q3
2021 was for Pandora. Unaided brand awareness was strong in Q3 2021, but still differs from market to market
depending on maturity. The relative gap to competitors was unchanged in Q3 2021.
Pandora Brilliance to be launched globally and Pandora ME relaunched in Q3 2021
Pandora is pleased to announce the decision that Brilliance (sustainably lab-created diamonds), which has been tested
in the UK since early May, will be sequentially rolled out globally starting in 2022. Country details will be shared closer
to launch. This is the first significant step in positioning Brilliance as a new product platform next to Moments, with
the aim to reach minimum 5% of global revenue in the future.
The purpose of the test launch in the UK was to gain insights into the consumer response and the operational aspects
of selling a new collection. The test launch has confirmed the market opportunity for Pandora and has also generated
important insights for Pandora that will benefit the global launch.
Pandora relaunched the Pandora ME platform on 30 September 2021. Pandora ME targets Gen Z and has so far seen
strong engagement on social media.
Executive
summary
Financial
highlights
Business
update
Revenue
review
Profitability
Cash Flow &
Balance sheet
Financial
guidance
Sustainability
Other events
& Contact
Financial
statements
Accounting
notes
3 NOVEMBER 2021 | INTERIM FINANCIAL REPORT Q3 2021 | COMPANY ANNOUNCEMENT No. 660 | page
6 | 37
REVENUE REVIEW
Solid revenue development
The revenue growth development can be illustrated as follows (supplementary comments follows below):
Q3 growth composition vs Q3 2019
Q3 growth composition vs Q3 2020
COVID-19 continues to impact performance, however Q3 2021 was the least affected quarter so far. On average
around 5% of the stores were temporarily closed in Q3 2021 vs approximately 5% in Q3 2020 and down from an
average of 15% in Q2 2021 and 30% in Q1 2021. In addition, while stores in China were formally open in Q3, traffic
into the majority of the network was heavily impacted by COVID-19. Pandora still recommends to use performance
vs 2019 as the best indicator for performance (although performance vs 2019 is, of course, also impacted by COVID-
19), and cautions that performance vs 2020 need to be interpreted with care.
Q3 growth composition vs Q3 2019
Organic growth vs 2019 was up 9% in Q3 2021, driven by strong sell-out growth of also 9%. The organic growth was
positively impacted by relatively higher sell-in compared to Q3 2019. As part of Programme NOW, Pandora initiated
a commercial reset in 2019 to reduce inventory at wholesale partners. Sell-in to partners in Q3 2019 was therefore
unusually low.
*Sell-out growth incl. temporarily closed stores, %
Executive
summary
Financial
highlights
Business
update
Revenue
review
Profitability
Cash Flow &
Balance sheet
Financial
guidance
Sustainability
Other events
& Contact
Financial
statements
Accounting
notes
3 NOVEMBER 2021 | INTERIM FINANCIAL REPORT Q3 2021 | COMPANY ANNOUNCEMENT No. 660 | page
7 | 37
Revenue was negatively impacted by approximately 2pp from the closure of net 105 concept stores and +600 other
points of sale compared with Q3 2019.
Q3 growth composition vs Q3 2020
Pandora generated sell-out growth of 5% vs Q3 2020, while organic growth ended at 14%. The gap between sell-out
growth and organic growth is mainly driven by a normalisation of sell-in to franchise partners in Q3 2021vs Q3 2020.
In Q3 2020, the sentiment among franchise partners was still impacted by high uncertainty around COVID-19 ahead
of the Q4 peak season. This was reflected in a more cautious inventory approach among partners, impacting sell-in
and thereby organic growth negatively. In Q3 2021, Pandora has seen a normalisation of sell-in to partners and this
drives 6% organic growth in Q3. The inventory build-up will turn into sell-out in Q4, where Pandora expects sell-out
growth to be higher than sell-in growth.
Furthermore, Pandora saw strong performance in the Other points of sales in Q3 2021. Other points of sales were
hit hard in 2020, but have picked up strongly in 2021 and drove approximately 3% organic growth in Q3 2021.
Performance in Other points of sales is not included in the sell-out KPI.
Finally, revenue is negatively impacted by approximately 1pp from changes to the store network coming from the
closures of 73 concept stores and more than 350 Other points of sales compared to Q3 2020 - in line with guidance.
Executive
summary
Financial
highlights
Business
update
Revenue
review
Profitability
Cash Flow &
Balance sheet
Financial
guidance
Sustainability
Other events
& Contact
Financial
statements
Accounting
notes
3 NOVEMBER 2021 | INTERIM FINANCIAL REPORT Q3 2021 | COMPANY ANNOUNCEMENT No. 660 | page
8 | 37
REVIEW OF REVENUE BY CHANNEL
Pandora saw strong performance across all channels in Q3. Online continued the very strong results and almost
doubled vs Q3 2019, while simultaneously delivering positive organic growth vs Q3 2020. Pandora-owned concept
stores saw a sequential improvement in Q3, as stores reopened across most key markets. Pandora-owned concept
stores delivered -7% organic growth vs 2019, up from -16% in Q2 2021 and -41% in Q1 2021.
Organic growth in Pandora’s wholesale business was up 13% vs 2019 in Q3. In 2019, Pandora took a deliberate
decision to reduce inventory at wholesale partners. This is also visible from the year to date performance vs 2019 as
organic growth is higher than sell-out following the low sell-in to partners in 2019. Performance at third-party
distributors ended at -23% in Q3 2021 vs Q3 2019, significantly lower than the rest of the network. This is an effect
of geographical performance differences, as a high share of Pandora’s third party distribution is in Asia, which was
impacted by COVID-19 in Q3 with several markets in hard lock-down.
QUARTERLY REVENUE DEVELOPMENT BY CHANNEL
DKK million
Q3 2021
Q3 2020
Sell-out growth
vs 2020
Sell-out growth
vs 2019
Organic
growth vs 2020
Organic
growth vs 2019
Local currency
growth vs 2020
Share of
Revenue
Pandora owned
1
retail
3,096
2,799
4%
14%
6%
10%
9%
65%
- of which concept stores
2,057
1,836
6%
-7%
11%
44%
- of which online stores
873
841
2%
94%
2%
18%
- of which other points of sale
166
122
32%
1%
32%
4%
Wholesale
1,451
1,113
7%
0%
35%
13%
30%
31%
- of which concept stores
858
640
42%
25%
34%
18%
- of which other points of sale
592
473
25%
-2%
25%
13%
Third-party distribution
182
158
7%
0%
17%
-23%
17%
4%
Total revenue
4,728
4,070
5%
9%
14%
9%
15%
100%
1
Pandora does not own any of the premises (Land and buildings) where stores are operated. Pandora exclusively operates stores from leased premises.
YEAR-TO-DATE REVENUE DEVELOPMENT BY CHANNEL
DKK million
9M 2021
9M 2020
Sell-out growth
vs 2020
Sell-out growth
vs 2019
Organic
growth vs 2020
Organic
growth vs 2019
Local currency
growth vs 2020
Share of
Revenue
Pandora owned
1
retail
9,450
7,901
20%
9%
19%
6%
22%
66%
- of which concept stores
5,465
4,596
16%
-22%
22%
38%
- of which online stores
3,512
2,950
21%
144%
21%
24%
- of which other points of sale
474
356
34%
-11%
34%
3%
Wholesale
4,415
2,806
43%
-5%
67%
12%
63%
31%
- of which concept stores
2,459
1,532
75%
13%
66%
17%
- of which other points of sale
1,956
1,275
58%
10%
58%
14%
Third-party distribution
518
410
43%
-5%
31%
-23%
31%
4%
Total revenue
14,383
11,118
27%
4%
32%
6%
33%
100%
1
Pandora does not own any of the premises (Land and buildings) where stores are operated. Pandora exclusively operates stores from leased premises.
Executive
summary
Financial
highlights
Business
update
Revenue
review
Profitability
Cash Flow &
Balance sheet
Financial
guidance
Sustainability
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Financial
statements
Accounting
notes
3 NOVEMBER 2021 | INTERIM FINANCIAL REPORT Q3 2021 | COMPANY ANNOUNCEMENT No. 660 | page
9 | 37
REVIEW OF NETWORK DEVELOPMENT
Pandora closed net 14 concept stores in Q3 2021. Nine of the net closures are in UK and Ireland following an overall
pruning of the network. As communicated at the Capital Markets Day on 14 September 2021, Pandora sees
significant opportunities to expand the store network and expects to have more concept stores in 2023 than today.
Furthermore, Pandora took over 17 franchise concept stores in the UK and acquired 7 concept stores in the US. The
17 stores in the UK were taken over at the end of September, and the financial impact in Q3 is limited. Pandora did
not pay any goodwill for the UK stores, but bought back the inventory.
Finally, Pandora has also taken over 21 shop-in-shops (Other points of sales) in Spain from the franchise partner El
Corte Ingles.
Number of points of sale
Q3 2021
Q2 2021
Q3 2020
Growth
Q3 2021
/Q2 2021
Growth
Q3 2021
/Q3 2020
Concept stores
2,616
2,630
2,689
-14
-73
- of which Pandora owned
1
1,403
1,379
1,379
24
24
- of which franchise owned
710
745
809
-35
-99
- of which third-party distribution
503
506
501
-3
2
Other points of sale
4,105
4,095
4,463
10
-358
Total points of sale
6,721
6,725
7,152
-4
-431
1
Pandora does not own any of the premises (Land and buildings) where stores are operated. Pandora exclusively operates stores from leased premises.
Executive
summary
Financial
highlights
Business
update
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review
Profitability
Cash Flow &
Balance sheet
Financial
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3 NOVEMBER 2021 | INTERIM FINANCIAL REPORT Q3 2021 | COMPANY ANNOUNCEMENT No. 660 | page
10 | 37
REVIEW OF REVENUE BY KEY MARKET
The US continued the very strong performance in the quarter. This is the fifth quarter in a row, Pandora sees sell-out
growth above +20% and third quarter in a row above 50%. Q3 2021 sell-out growth vs 2019 ended at an encouraging
59% while sell-out growth vs 2020 ended at 29%. As mentioned previously, the performance in US is temporarily
supported by the stimulus packages. According to Bank of America’s global luxury report for Q3, the US market saw
growth of 55% vs Q3 2019. This is the third quarter in a row, Pandora outperforms market data in the luxury report.
The strong performance was driven by the Moments platform, which saw 65% sell-out growth vs 2019. The
promotional density continues to be low, and for Q3 2021 98% of sales was at full price.
Performance in the China market in Q3 2021 was significantly impacted by typhoons in July and a COVID-19 outbreak
later in the quarter. Sell-out growth vs 2019 ended at -45% in Q3 2021, a significant decrease from -13% in Q2 2021.
Traffic in the physical stores was down approximately -50% vs 2020 and -70% vs 2019. As mentioned above,
Pandora’s physical stores in China were open during Q3, but more than 80% of the stores saw a significant decline in
traffic due to COVID-19 restrictions. The negative impact was not recouped online. Pandora will take the first steps
to reposition the brand in Q4 2021 by among others increasing media investments. China is not expected to return
to growth before next year. China accounted for 5% of revenue in Q3 2021.
Pandora’s key European markets delivered 11% sell-out growth in Q3 vs 2019 and saw a sequential improvement vs
Q1 and Q2, as stores reopened. UK, Italy and Germany all ended at positive sell-out growth vs 2019 driven by a very
strong online performance, while France ended at -6% impacted by continued COVID-19 restrictions to enter malls
as well as the promo detox. With stores reopening, Pandora saw consumers returning to physical stores with
encouraging traffic trajectory throughout the quarter. Both Italy and Germany delivered positive sell-out growth vs
2019 in the physical stores of around 8% and 16%, respectively.
The Australian market had a tough quarter with sell-out growth vs 2019 ending at -22%, which is an effect of the
COVID-19 lockdowns across the market. On average almost 50% of stores were temporarily closed due to COVID-
19 in Q3 2021 compared to 13% in Q3 2020. Along with a number of other Asian markets, Australia was the market
most impacted by COVID-19 in the quarter. Performance in stores not closed due to COVID-19 indicates that the
underlying performance is healthy. Following the store closures, consumers turned to the online business, and
Australia saw 290% sell-out growth vs 2019. Currently no stores are closed in Australia and revenue growth is back in
plus.
Executive
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3 NOVEMBER 2021 | INTERIM FINANCIAL REPORT Q3 2021 | COMPANY ANNOUNCEMENT No. 660 | page
11 | 37
QUARTERLY REVENUE DEVELOPMENT BY KEY MARKET
DKK million
Q3 2021
Q3 2020
Sell-out growth
vs 2020
Sell-out growth
vs 2019
Organic growth
vs 2020
Local currency
growth
Share of
revenue
US
1,342
901
29%
59%
47%
51%
28%
China
233
350
-35%
-45%
-37%
-37%
5%
UK
637
617
-5%
12%
-3%
-2%
13%
Italy
527
484
7%
10%
9%
9%
11%
Australia
170
225
-31%
-22%
-25%
-25%
4%
France
221
222
-9%
-6%
0%
0%
5%
Germany
280
233
5%
30%
20%
20%
6%
Total top-7 markets
3,411
3,031
3%
16%
10%
11%
72%
Rest of Pandora
1,317
1,040
10%
-9%
26%
26%
28%
Total revenue
4,728
4,070
5%
9%
14%
15%
100%
YEAR-TO-DATE REVENUE DEVELOPMENT BY KEY MARKET
DKK million
9M 2021
9M 2020
Sell-out growth
vs 2020
Sell-out growth
vs 2019
Organic growth
vs 2020
Local currency
growth
Share of
revenue
US
4,504
2,523
77%
59%
88%
92%
31%
China
904
939
-2%
-36%
-5%
-5%
6%
UK
1,793
1,616
3%
-1%
8%
9%
12%
Italy
1,482
1,196
20%
-3%
24%
24%
10%
Australia
639
584
6%
-8%
4%
4%
4%
France
624
659
-8%
-14%
-5%
-5%
4%
Germany
712
597
-3%
1%
19%
20%
5%
Total top-7 markets
10,659
8,114
29%
14%
33%
35%
74%
Rest of Pandora
3,725
3,004
20%
-19%
27%
27%
26%
Total revenue
14,383
11,118
27%
4%
32%
33%
100%
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12 | 37
PROFITABILITY
Strong EBIT margin - up compared to Q3 2020 and back to Q3 2019 levels
EBIT margin development
The EBIT margin was 20.2% in Q3 2021, up from 17.2% in Q3 2020 (excluding restructuring costs). The Q3 2020 EBIT
margin was negatively impacted by COVID-19 as some partners still had a cautious approach affecting sell-in revenue.
EBIT margin in Q3 2021 is at the same level as the EBIT margin in Q3 2019 (excluding restructuring costs). Absolute
EBIT growth was 36% vs Q3 2020 and ended at DKK 957 million in Q3 2021 vs DKK 702 million in Q3 2020 and DKK
891 million in Q3 2019.
Pandora is pleased with the strong Q3 EBIT margin, which is mainly driven by the inherent operating leverage in
Pandora’s business model. Pandora continues to see the margin being supported by the unusually strong growth in
US. On the other hand, the Q3 2021 EBIT margin is negatively impacted by the continued impact from the pandemic
and the 5% of stores temporarily closed during the quarter as well as extraordinary costs in Thailand to mitigate the
COVID-19 risks. The extraordinary cost in Thailand impacted the EBIT margin negatively by approximately -1.2pp – a
one-off impact.
Additionally, Pandora received DKK 14 million in government support in Q3 2021, significantly lower than Q3 2020
(DKK 75 million). Furthermore, Pandora reached agreements of DKK 10 million in rent concessions with landlords in
Q3 2021 (DKK 36 million in Q3 2020). Less government support and rent concessions impacted the EBIT margin
negatively by -1.8pp in Q3 2021 vs Q3 2020.
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As previously communicated, cost savings generated as part of Programme NOW are expected to have a DKK 450
million incremental impact in 2021. Pandora continues to fully reinvest the cost savings in driving revenue. In Q3 2021,
this results in a net cost phasing of approximately 1pp expected to be reversed in Q4. Furthermore, the EBIT margin
in Q3 2021 is lifted by 1.5pp due to among others extraordinary (and temporary) vacancies in stores as well as lower
cost related to key money, following certain impairments in Q3 2020 and as key money is currently no longer paid in
many jurisdictions.
The EBIT margin was negatively impacted by rising commodity prices (mainly silver) leading to a headwind of around
-2.2pp. This is partly offset by favourable foreign exchange rate developments (mainly USD and Thai baht) of around
+1.4pp.
Finally, the EBIT margin is supported by a number of other factors with a net impact of 0.8pp. This includes, among
others, the positive impact of less promotions and a temporary negative impact of -0.5pp related to inventory taken
over as part of the forward integration during the quarter.
GROSS MARGIN
In Q3 2021, the gross margin decreased 2.6pp to 75.5% compared with 78.1% in Q3 2020 (excluding restructuring
cost) or 1.3pp from 76.8% in the first half of 2021. The underlying gross margin is unchanged and strong – the decline
is driven by an increase in silver prices and one-off costs related to COVID-19 and forward integration.
In Q3, Pandora took significant measures to protect employees and production in Thailand from COVID-19. This
included setting up temporary on-site lodging to mitigate the risk of infections. The gross margin in Q3 2021 was
suppressed by approximately -1.2pp due to these one-off costs. Pandora anticipates a similar scenario in Q4 2021.
As mentioned, Pandora took over 21 shop-in-shops from El Corte Ingles in Spain and 24 franchise concept stores in
US and UK. This temporarily drags down the gross margin by around -0.5pp compared with Q3 2020 due to the take-
over of inventory at wholesale value. Increasing commodity prices had a negative impact on the gross margin of -
2.2pp, partly offset by a favourable FX development, mainly from the Thai baht, of +1.5pp vs Q3 2020. Finally, the
gross margin was positively impacted by lower promotional activity (more full-price sell-through) offsetting some of
the negative impact mentioned above.
COST OF SALES AND GROSS PROFIT
DKK million
Q3 2021
Q3 2020
Growth
Share of
revenue
Q3 2021
Share of
revenue
Q3 2020
9M 2021
9M 2020
Growth
Share of
revenue
9M 2021
Share of
revenue
9M 2020
Revenue
4,728
4,070
16%
100.0%
100.0%
14,383
11,118
29%
100.0%
100.0%
Cost of sales
-1,158
-892
30%
-24.5%
-21.9%
-3,402
-2,555
33%
-23.7%
-23.0%
Gross profit
excl. restructuring costs
3,571
3,178
12%
75.5%
78.1%
10,981
8,563
28%
76.3%
77.0%
Restructuring costs
0
4
-100%
0%
0.1%
0
-138
-100%
0.0%
-1.2%
Gross profit
incl. restructuring costs
3,571
3,183
12%
75.5%
78.2%
10,981
8,425
30%
76.3%
75.8%
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14 | 37
OPERATING EXPENSES
Total operating expenses was DKK 2,614 million in Q3 2021, up 5% in constant foreign exchange rates compared to
Q3 2020, while the OPEX ratio declined to 55.3% in Q3 2021 from 60.8% in Q3 2020.
The increase vs Q3 2020 was mainly driven by Marketing expenses, in line with Pandora’s strategy to stay top of mind
with consumers. Marketing expenses in Q3 2021 constituted 15.9% of revenue, while year-to-date September was
14.7% and in line with Pandora’s expectations of a 13-15% marketing spend ratio. Sales and distribution expenses
was down -2% in constant foreign exchange rates vs Q3 2020 partly driven by extraordinary vacancies in stores – and
lower key money cost. In Q3 2021, Pandora received DKK 14 million in COVID-19 related government subsidies and
DKK 10 million in rent concessions, significantly lower than last year. Administrative expenses increased by 8%
compared with Q3 2020 in constant foreign exchange rates, mainly due to COVID-19 related savings last year but
also investments to further strengthen certain global functions, including People and Sustainability.
OPERATING EXPENSES
DKK million
Q3 2021
Q3 2020
Growth
Share of
revenue
Q3 2021
Share of
revenue
Q3 2020
9M 2021
9M 2020
Growth
Share of
revenue
9M 2021
Share of
revenue
9M 2020
Sales and distribution
expenses
-1,418
-1,433
-1%
30.0%
35.2%
-4,290
-4,267
1%
29.8%
38.4%
Marketing expenses
-752
-631
19%
15.9%
15.5%
-2,114
-1,665
27%
14.7%
15.0%
Administrative expenses
-444
-412
8%
9.4%
10.1%
-1,416
-1,257
13%
9.8%
11.3%
Total operating expenses
excl. restructuring costs
-2,614
-2,477
6%
55.3%
60.8%
-7,820
-7,190
9%
54.4%
64.7%
Restructuring costs
0
-239
-100%
0.0%
5.9%
0
-763
-100%
0.0%
6.9%
Total operating expenses
incl. restructuring costs
-2,614
-2,716
-4%
55.3%
66.7%
-7,820
-7,953
-2%
54.4%
71.5%
FINANCIAL EXPENSES AND TAX
Net financials in Q3 2021 came at a cost of DKK 137 million, which was higher than last year and primarily driven by
realized losses on FX hedging contracts.
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CASH FLOW & BALANCE SHEET
Net working capital remain at around zero - despite inventory build-up ahead of peak trading period
The net working capital continues to be strong and ended at 0.2% of the last 12 months revenue in Q3 2021
compared with -0.3% in Q2 2021 and 0.0% in Q3 2020. The net working capital continues to be around zero despite
further inventory build-up in Q3 2021 of almost DKK 0.6 billion. This comes on top of a DKK 0.2 billion build up in Q2
2021 and DKK 0.4 billion in Q1 2021. Pandora is building up inventory in order to decrease the risk of disruptions in
the supply chain as well as to decrease the risk of stock-outs ahead of the important Q4 trading period. Inventories
ended at DKK 3.2 billion in Q3 2021 vs DKK 2.6 billion in Q2 2021. Pandora expects inventories to decrease in Q4.
Trade receivables are slightly up vs Q2 2021 (DKK 0.1 billion) reflecting the increase in wholesale revenue, and
wholesale Days Sales Outstanding (DSO) ended at 33 days in line with last year, reflecting the healthy and balanced
sell-in to partners. Total DSO, including retail receivables, ended at 15 days by the end of September.
Free cash flow incl. lease payments ended at DKK 502 million corresponding to a cash conversion of 53% in Q3 2021.
CAPEX in the quarter remained low at 4% of revenue (3% year to date), partially due to postponement of certain
projects due to COVID-19 lockdowns. As communicated at the Capital Markets Day, CAPEX is expected to increase
in 2022.
The improved underlying performance, combined with the lapse of Programme NOW one-off restructuring costs as
well as lower invested capital are all positively impacting ROIC. ROIC ended Q3 at 48% - the highest level since Q4
2018 and up 26pp vs Q3 2020.
NET WORKING CAPITAL AS A SHARE OF THE LAST 12 MONTHS’ REVENUE
Share of preceding 12 months' revenue
Q3 2021
Q2 2021
Q1 2021
Q4 2020
Q3 2020
Inventories
14.4%
11.8%
12.3%
10.3%
13.7%
Trade receivables
3.6%
3.2%
3.1%
4.6%
3.2%
Trade payables
-11.0%
-10.3%
-11.8%
-16.9%
-12.7%
Other net working capital elements
-6.7%
-4.9%
-4.0%
-5.6%
-4.2%
Total
0.2%
-0.3%
-0.4%
-7.6%
0.0%
The financial leverage, NIBD to EBITDA excl. restructuring costs, was 0.5x by the end of September. This is in the low
end of the capital structure policy range of NIBD to EBITDA between 0.5 and 1.5x. Pandora continues to hold a strong
liquidity position and is well positioned for the continued elevated uncertainty related to COVID-19, while at the
same time continuing to distribute cash to shareholders. Pandora has per end of September 2021 paid out DKK 2.1
billion to shareholders in 2021 through a combination of extraordinary dividends and share buybacks and will pay out
another DKK 0.5 billion in extraordinary dividend in Q4 as well as DKK 2.9 billion in planned share buybacks before 4
February 2022.
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FINANCIAL GUIDANCE
Based on strong performance in the third quarter of 2021 and a recently revised forecast for the rest of the year,
Pandora upgraded the financial guidance for 2021 on 1 November. Organic growth was updated to “organic growth
of 18-20%” (previously “16-18%”) and “EBIT margin of 24.0-24.5%” (previously “23-24%”).
COVID-19 and the unusually high level of US growth continue to create increased uncertainty around the guidance.
REVENUE GUIDANCE
The revenue guidance of “18-20%” vs 2020 corresponds to an organic growth expectation of “5-7%” vs 2019.
The updated guidance is based on the assumption that approximately 5% of the stores will be temporarily closed or
severely impacted due to COVID-19 in Q4. This is the same as in the previous guidance. Today, around 4% of the
stores are temporarily closed or severely impacted due to COVID-19.
Furthermore, the guidance assumes two things related to COVID-19: 1) there will no new material COVID-19
restrictions implemented over and above what is currently in place as of today and 2) COVID-19 will have no major
negative impact on production and supply chain.
Full year, a negative impact on organic growth of -6% compared to 2020 is expected due to COVID-19. The -6%
impact is the net result of revenue lost in the temporarily closed stores and a partial online pickup of the lost revenue.
On the other hand, the COVID-19 stimulus packages in the US have positively contributed to the growth so far in
2021. Looking into 2022, there is high uncertainty on what the net impact of these two COVID-19 related factors
are.
US performance in Q4 2021 will be a key factor in determining where Pandora lands within the guidance range. It is
expected that the impact from US stimulus packages will be lower in Q4 2021, but the outcome is obviously
associated with high uncertainty.
China is expected to remain a drag on group performance for the rest of the year.
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PROFITABILITY GUIDANCE
The upgrade of the EBIT margin guidance is driven by operating leverage. Due to COVID-19 Pandora has decreased
the 2021investments in the repositioning of the brand in China and now expects to invest approximately DKK 100
million (0.5pp less drag on the EBIT margin in 2021).
On the other hand, Pandora incurs additional costs due to the significant precautionary measures related to COVID-
19 in Thailand. To protect employees and production, Pandora has among other initiatives set up temporary lodging
at the production sites. This carries an expected extraordinary cost of DKK 120 million or 0.5pp negative impact on
the EBIT margin. Half of this cost has already been recognized in Q3 2021 and the remainder is expected in Q4.
Current foreign exchange rates, if unchanged, are estimated to have a favourable impact on the EBIT margin in 2021
of approximately 1.0pp, compared to 2020. This is slightly up from around 0.9pp in the Q2 2021 Interim Financial
Report. The full-year impact from both foreign exchange and commodities at current rates is still expected to be
around 1pp negative impact on the EBIT margin in 2021.
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2021 GUIDANCE - OTHER PARAMETERS
CAPEX for 2021 is expected to be around DKK 0.8 billion (previously DKK 1.0 billion). The updated guidance for store
network development is net 50 concept store closures (previously 25-50 net closures). The effective tax rate is
expected to be 22-23%, in line with 2020 and unchanged from previous guidance.
CAPITAL STRUCTURE POLICY AND CASH DISTRIBUTION
At the end of September 2021, Pandora’s leverage was only 0.5x NIBD to EBITDA, at the very low end of our capital
structure policy of 0.5-1.5x. In May 2021, Pandora re-initiated cash distributions and has per end of September paid
out DKK 2.1 billion to shareholders through a combination of extraordinary dividends and share buybacks. Pandora
will pay out another DKK 0.5 billion in extraordinary dividend in Q4 as well as DKK 2.9 billion in planned share buybacks
before 4 February 2022.
From 5 May to 29 October 2021, Pandora has bought back more than 2.1 million shares at an average price of around
DKK 828 per share for a total value of almost DKK 1.8 billion, with a further DKK 2.2 billion remaining of the planned
program before 4 February 2022.
The extraordinary dividend of DKK 5 per share will be paid on 17 November 2021.
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FOREIGN EXCHANGE ASSUMPTIONS AND IMPLICATIONS
Average 2020
28 October 2021
FX ASSUMPTIONS AND
2021 Y-Y Financial
IMPLICATIONS
FX Rates
FX Rates
Impact
USD/DKK
6.5422
6.4169
THB/DKK
0.2091
0,193
GBP/DKK
8.3890
8,8169
CNY/DKK
0.9476
1,0030
AUD/DKK
4.5069
4,8271
REVENUE (DKK million)
-100 to -200
EBIT (DKK million)
100-200
EBIT margin
1.0%
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20 | 37
SUSTAINABILITY
Pandora’s key sustainability targets are listed below.
• Be carbon neutral in our own operations by 2025
• Reduce the total emissions across our own operations and value chain 50% by 2030
• Become net zero by 2040
• Use only recycled silver and gold in our jewellery by 2025
• Only use lab-created diamonds going forward
• Gender balance in all hiring and promotions into leadership at VP+ in order to achieve 1/3 women in
leadership by 2025 and reach full gender parity
1
no later than 2030
• Create workforce with proportionate share of underrepresented groups in geographies that allow data
registering
• 30% of the branding content budget will be spent with suppliers owned by women or
underrepresented groups
In Q3, Pandora announced its new science-based target, committing to halve its emissions across its operations and
value chain by 2030. It also made a long-term commitment to reach net zero emissions by 2040. This is the most
ambitious climate target in the jewellery industry.
Pandora also announced its new Inclusion and Diversity targets, notably committing to have 1/3 women in leadership
positions by 2025 and full gender parity no later than 2030. Additional targets were set to increase the share of
underrepresented groups across Pandora’s workforce and in the company’s customer engagement and marketing
communications.
Pandora is in the process of finalizing its Point of Sales Materials (POSM) and human rights strategies. We aim to share
more about both in early 2022.
1
Gender parity in leadership = equal no. of men and women in leadership positions from VP and up (incl. the Board of Directors) with +/- 5 pp variation, also allowing
for people not identifying as female or male.
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OTHER EVENTS
OTHER IMPORTANT EVENTS IN Q3 2021 AND AFTER THE REPORTING PERIOD
No subsequent events have occurred after the balance sheet date that required adjustment to or disclosure in the
consolidated financial statements.
FINANCIAL CALENDAR 2022
The financial calendar lists the expected dates of publication of financial announcements and the Annual
General Meeting in the 2022 financial year for Pandora A/S.
09 February 2022 Annual Report for 2021
10 March 2022 Annual General Meeting
04 May 2022 Interim Financial Report for the first quarter of 2022
16 August 2022 Interim Financial Report for the second quarter/first six months of 2022
08 November 2022 Interim Financial Report for the third quarter/first nine months of 2022
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2021 YEAR-TO-DATE DEVELOPMENT
REVENUE
Total revenue increased by 33% in local currency to DKK 14,383 million in the first 9 months (9M) of 2021 compared
with 9M 2020. Organic growth was 32% reflecting good underlying performance but also that 9M 2020 was heavily
impacted by COVID-19.
GROSS PROFIT AND COSTS
Gross profit was DKK 10,981 million in 9M 2021 (DKK 8,563 million in 9M 2020), resulting in a gross margin of 76.3%
in 9M 2021 and down -0.7pp vs 9M 2020 of 77.0% excluding restructuring costs.
Sales and distribution expenses excluding restructuring costs increased to DKK 4,290 million in 9M 2021 (DKK 4,267
million in 9M 2020), corresponding to 29.8% of revenue in 9M 2021 (38.4% in 9M 2020). The increase is the result of
variable costs related to the higher revenue, cost reductions implemented during the COVID-19 pandemic in 9M
2020 and less government support and rent concessions received in Q2 and Q3 2021. Rent concessions and
government support have been recognized in the profit and loss statement under Sales and Distribution expenses.
Marketing expenses excluding restructuring costs increased to DKK 2,114 million in 9M 2021 (DKK 1,665 million in
9M 2020), resulting in a share of revenue of 14.7% in 9M 2021 compared with 15.0% in 9M 2020.
Administrative expenses excluding restructuring cost increased to DKK 1,416 million in 9M 2021 compared with DKK
1,257 million in 9M 2020, corresponding to 9.8% of revenue in 9M 2021 (11.3% in 9M 2020). The increase in absolute
terms mainly reflects the COVID-19 savings recognised in 2020.
EBIT
EBIT for 9M 2021 was DKK 3,161 million – a significant increase compared with DKK 1,373 million excluding
restructuring costs for 9M 2020, resulting in an EBIT margin of 22.0% in 9M 2021 (12.3% in 9M 2020 excluding
restructuring costs). The significant improvement in the EBIT margin is mainly a result of strong operating leverage as
9M 2020 was very negatively impacted by COVID-19.
NET FINANCIALS
Net financials amounted to a cost of DKK 250 million in 9M 2021 vs a cost of DKK 286 million in 9M 2020.
INCOME TAX EXPENSES
Income tax expenses were DKK 655 million in 9M 2021 compared with a tax expense of DKK 42 million in 9M 2020,
implying an effective tax rate for the Group of 22.5% for 9M 2021 (22.5% in 9M 2020).
NET PROFIT
Net profit in 9M 2021 was DKK 2,256 million vs DKK 144 million in 9M 2020.
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23 | 37
CONTACT
CONFERENCE CALL
A conference call for investors and financial analysts will be held today at 11.00 CET and can be joined online at
www.pandoragroup.com. The presentation for the call will be available on the website before the call.
The following numbers can be used by investors and analysts:
DK: +45 35 44 55 77
SE: +46 85 66 42 651
UK (International): +44 33 33 000 804
US: +1 631 913 1422
Please use PIN: 129 83 883#
Link to webcast: https://streams.eventcdn.net/pandora/2021q3
ABOUT PANDORA
Headquartered in Cope nhag en , Den mark, Pandora employs 26,000 people worldwide and crafts its jewellery at two
LEED certified facilities in Thailand using mainly recycled silver and gold. Pandora is committed to leadership in
sustainability and has set science-based targets to reduce greenhouse gas emissions by 50% across its own
operations and value chain by 2030. The company is listed on the Nasdaq Copenhagen stock exchange and
generated sales of DKK 19.0 billion (EUR 2.5 billion) in 2020.
For more information, please contact:
INVESTOR RELATIONS
John Bäckman
VP, Investor Relations, Tax & Treasury
+45 5356 6909
jobck@pandora.net
CORPORATE COMMUNICATIONS
Mads Twomey-Madsen
VP, Corporate Communications & Sustainability
+45 2510 0403
madt@pandora.net
Kristoffer Malmgren
Director, Investor Relations
+45 3050 1174
kram@pandora.net
Johan Melchior
Director, External Relations
+45 4060 1415
jome@pandora.net
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FINANCIAL STATEMENTS
CONSOLIDATED INCOME STATEMENT
DKK million
Notes
Q3 2021
Q3 2020
9M 2021
9M 2020
FY 2020
Revenue
3
Cost of sales
-1,158
-888
-3,402
-2,693
-4,634
Gross profit
Sales, distribution and marketing expenses
-2,170
-2,094
-6,404
-6,095
-9,155
Administrative expenses
-444
-621
-1,416
-1,857
-2,536
Operating profit
Finance income
Finance costs
-189
-85
-384
-418
-507
Profit before tax
Income tax expense
-184
-100
-655
-42
-556
Net profit for the period
Earnings per share, basic, DKK
Earnings per share, diluted, DKK
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
DKK million
Q3 2021
Q3 2020
9M 2021
9M 2020
FY 2020
Net profit for the period
Other comprehensive income:
Items that may be reclassified to profit/loss for the
period
Exchange rate adjustments of investments in subsidiaries
-263
-481
-609
Fair value adjustment of hedging instruments
-243
-666
Tax on other comprehensive income, hedging instruments,
income/expense
-10
-24
-13
Items that may be reclassified to profit/loss for the
period, net of tax
-152
-144
-391
-292
-416
Items not to be reclassified to profit/loss for the period
Actuarial gain/loss on defined benefit plans, net of tax
Items not to be reclassified to profit/loss for the period,
net of tax
Other comprehensive income, net of tax
-152
-144
-391
-292
-410
Total comprehensive income for the period
-148
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CONSOLIDATED BALANCE SHEET
DKK million
Notes
2021
30 September
2020
30 September
2020
Full Year
ASSETS
Goodwill
9
Brand
Distribution
Other intangible assets
Total intangible assets
Property, plant and equipment
Right-of-use assets
10
Deferred tax assets
Other financial assets
Total non-current assets
Inventories
Trade receivables
7
Right-of-return assets
Derivative financial instruments
5,6
Income tax receivable
Other receivables
Cash
Total current assets
Total assets
EQUITY AND LIABILITIES
Share capital
Treasury shares
-1,186
-93
-93
Reserves
Retained earnings
Total equity
Provisions
Loans and borrowings
10
Deferred tax liabilities
Total non-current liabilities
Provisions
Refund liabilities
Contract liabilities
Loans and borrowings
10
Derivative financial instruments
5,6
Trade payables
Income tax payable
Other payables
Total current liabilities
Total liabilities
Total equity and liabilities
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CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
DKK million
Share
capital
Treasury
shares
Translation
reserve
Hedging
Reserve
Dividend
proposed
Retained
earnings
Total
equity
2021
Equity at 1 January
-93
Net profit for the period
Other comprehensive income, net of tax
-520
-9
-391
Total comprehensive income for the period
-520
Share-based payments
Purchase of treasury shares
-1,094
-1,094
Proposed dividend
-993
Dividend paid
-993
-993
Equity at 30 September
-1,186
-305
2020
Equity at 1 January
-1,964
Net profit for the period
Other comprehensive income, net of tax
-458
-292
Total comprehensive income for the period
-458
-148
Share-based payments
Purchase of treasury shares
-431
-431
Sale of treasury shares
-509
Dividend paid
-836
-826
Equity at 30 September
-93
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CONSOLIDATED STATEMENT OF CASH FLOW
1
Cash comprises cash at bank and in hand.
The above cannot be derived directly from the income statement and the balance sheet.
DKK million
Notes
Q3 2021
Q3 2020
9M 2021
9M 2020
FY 2020
Operating profit
Depreciation and amortisation
Share-based payments
Change in inventories
-593
-496
-1,131
-778
-96
Change in receivables
-53
Change in payables and other liabilities
-1,124
-528
Other non-cash adjustments
-65
-91
-207
-155
Interest etc. received
Interest etc. paid
-38
-68
-146
-166
-247
Income taxes paid
-105
-90
-354
-192
Cash flows from operating activities, net
Acquisitions of subsidiaries and activities, net of cash acquired
8
-52
-66
-6
-12
Purchase of intangible assets
-80
-30
-206
-92
-130
Purchase of property, plant and equipment
-97
-122
-195
-284
-374
Change in other non-current assets
-3
-4
Proceeds from sale of property, plant and equipment
Cash flows from investing activities, net
-231
-153
-459
-375
-484
Acquisitions of non-controlling interests
-42
-42
Dividend paid
-495
-993
-826
-825
Purchase of treasury shares
-842
-1,094
-431
-431
Sale of treasury shares
Proceeds from loans and borrowings
Repayment of loans and borrowings
-319
-3,005
-7,419
-9,073
Repayment of lease commitments
-241
-234
-711
-579
-839
Cash flows from financing activities, net
-1,430
-554
-3,796
-1,662
-3,571
Net increase/decrease in cash
-776
-2,100
-124
Cash at beginning of period
1
Exchange gains/losses on cash
-4
-21
-55
-62
Net increase/decrease in cash
-776
-2,100
-124
Cash at end of period
1
Cash flows from operating activities, net
885
776
2,155
1,913
5,975
- Interests etc. received
-1
0
-2
-2
-3
- Interests etc. paid
38
68
146
166
247
Cash flows from investing activities, net
-231
-153
-459
-375
-484
- Acquisition of subsidiaries and activities, net of cash acquired
52
0
66
6
12
Free cash flow excluding lease payments
744
691
1,907
1,707
5,747
Free cash flow including lease payments
502
457
1,195
1,128
4,908
Unutilised committed credit facilities
5,056
7,500
5,056
7,500
6,998
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ACCOUNTING NOTES
NOTE 1 – Accounting policies
The unaudited condensed consolidated interim financial statements have been prepared in accordance with IAS 34
‘Interim Financial Reporting’ as issued by the International Accounting Standards Board (IASB) and adopted by the
European Union and additional Danish disclosure requirements for interim financial reporting of listed companies.
The accounting policies applied are consistent with the accounting policies set out in the Annual Report 2020 apart
from the Covid-19-Related Rent Concessions beyond 30 June 2021 - amendment to IFRS 16 Leases.
Due to rounding, numbers presented throughout this report may not add up precisely to the totals and percentages
may not precisely reflect the absolute figures.
Pandora presents financial measures in the interim financial report that are not defined according to IFRS. Pandora
believes that these non-GAAP measures provide valuable information to investors and Pandora’s management when
evaluating performance. Since other companies might calculate these differently from Pandora, they may not be
comparable to the measures used by other companies. These financial measures should therefore not be considered
a replacement for measures defined under IFRS. For the definitions of other alternative performance measures used
by Pandora which are not defined by IFRS, refer to note 5.6 in the consolidated financial statements in the Annual
Report 2020.
New standards, interpretations and amendments adopted by Pandora
Pandora has adopted all new or amended standards (IFRS) and interpretations (IFRIC) as adopted by the EU and which
are effective for the financial year beginning on 1 January 2021. The implementation of these new or amended
standards and interpretations had no material impact on the financial statements for the period apart from the
amendment in IFRS 16. Pandora applied the extension of the practical expedient issued by IASB for all contracts with
rent concessions occurring as a direct consequence of COVID-19 and where it meets all conditions of the practical
expedient. The effect of the amendment and its impact on financial statements is presented in note 10.
NOTE 2 – Significant accounting estimates and judgements
In preparing the consolidated interim financial statements, Management makes various accounting estimates and
assumptions, which form the basis of presentation, recognition and measurement of Pandora’s assets and liabilities.
All significant accounting estimates and judgements are consistent with the description in the Annual Report 2020
to which we refer.
Due to COVID-19 outbreak and the limited visibility of the impact, Pandora will continue assessing the value of the
assets and relevant contracts, especially in case of new material lockdowns.
For information on liquidity risk, please refer to note 5.
NOTE 3 – Segment and revenue information
Pandora's activities are segmented on the basis of collections and consistent with the management reporting
structure.
The operating activities of the Group are divided into two operating segments: Moments and Collabs as well as Style
and Upstream Innovation. This structure was implemented as part of Pandora’s reorganisation in Q2 2020. The
comparative figures for 2020 have been restated to reflect the new segments and disaggregation of revenue by GBU
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collection structure has replaced revenue by product category in Q2 onwards. The two operating segments both
include all channels relating to the distribution and sale of Pandora products.
The non-unit driven revenue, comprising mainly of franchise fees, is allocated in the different revenue categories
proportionately.
Management monitors the profitability of the operating segments separately for the purpose of making decisions
about resource allocation and performance management. Segment results are measured at gross profit as presented
in the table below.
SEGMENT INFORMATION
DKK million
Moments and
Collabs
Style and
Upstream Innovation
Group
Q3 2021
Revenue
3,325
1,403
4,728
Cost of sales
-829
-328
-1,158
Gross profit
2,496
1,075
3,571
Operating expenses
-2,614
Consolidated operating profit (EBIT)
957
Profit margin (EBIT margin)
20.2%
Q3 2020
1
Revenue
2,848
1,222
4,070
Cost of sales
-629
-259
-888
Gross profit
2,219
964
3,183
Operating expenses
-2,716
Consolidated operating profit (EBIT)
467
Profit margin (EBIT margin)
11.5%
Restructuring costs
-235
Profit margin (EBIT margin) excl. restructuring costs
17.2%
9M 2021
Revenue
10,299
4,085
14,383
Cost of sales
-2,506
-897
-3,402
Gross profit
7,793
3,188
10,981
Operating expenses
-7,820
Consolidated operating profit (EBIT)
3,161
Profit margin (EBIT margin)
22.0%
9M 2020
1
Revenue
7,960
3,158
11,118
Cost of sales
-1,947
-746
-2,693
Gross profit
6,012
2,413
8,425
Operating expenses
-7,953
Consolidated operating profit (EBIT)
472
Profit margin (EBIT margin)
4.2%
Restructuring costs
-901
Profit margin (EBIT margin) excl. restructuring costs
12.3%
1
The ‘Garden’ collection has been re-allocated from Style and Upstream Innovation to Moments and Collabs in Q2 2021. Comparative figures for 2020 were restated
accordingly.
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REVENUE BY GLOBAL BUSINESS UNITS
DKK million
Q3 2021
Q3 2020
Sell-out
growth
vs 2020
Sell-out
growth
vs 2019
Share of
Revenue
9M 2021
9M 2020
1
Sell-out
growth
vs 2020
Sell-out
growth
vs 2019
Share of
revenue
Moments and Collabs
3,325
2,848
6%
11%
70%
10,299
7,960
27%
6%
72%
hereof Moments
2,948
2,440
8%
9%
62%
9,190
7,006
28%
3%
64%
hereof Collabs
377
408
-13%
22%
8%
1,109
954
23%
40%
8%
Style and Upstream Innovation
1,403
1,222
1,222
0%
2%
30%
4,085
3,158
23%
-4%
28%
hereof Timeless
722
660
0%
-18%
15%
2,435
1,827
28%
-18%
17%
hereof Signature
483
456
8%
43%
10%
1,294
1,065
1,065
20%
18%
9%
hereof Me
188
107
-41%
275%
4%
328
267
-13%
n/a
2%
hereof Brilliance
10
-
-
n/a
0%
28
-
-
n/a
0%
Total revenue
4,728
4,070
5%
9%
100%
14,383
11,118
27%
4%
100%
1
The ‘Garden’ collection has been re-allocated from Style and Upstream Innovation to Moments and Collabs in Q2 2021. Comparative figures for 2020 were restated
accordingly.
Goods transferred at a point in time
4,717
4,055
14,340
11,078
Services transferred over time
11
15
44
40
Total revenue
4,728
4,070
14,383
11,118
REVENUE DEVELOPMENT IN THE KEY MARKETS
DKK million
Q3 2021
Q3 2020
Growth in
local
currency
9M 2021
9M 2020
Growth in
local
currency
FY 2020
US
1,342
901
51%
4,504
2,523
92%
4,505
China
233
350
-37%
904
939
-5%
1,261
UK
637
617
-2%
1,793
1,616
9%
2,960
Italy
527
484
9%
1,482
1,196
24%
2,021
Australia
170
225
-25%
639
584
4%
1,120
France
221
222
0%
624
659
-5%
1,154
Germany
280
233
20%
712
597
20%
1,014
Total top-7 markets
3,411
3,031
11%
10,659
8,114
35%
14,036
Rest of Pandora
1,317
1,040
26%
3,725
3,004
27%
4,973
Total revenue
4,728
4,070
15%
14,383
11,118
33%
19,009
REVENUE BY CHANNEL
DKK million
Q3 2021
Q3 2020
Growth in
local
currency
9M 2021
9M 2020
Growth in
local
currency
FY 2020
Retail physical stores
1
2,223
1,958
12%
5,939
4,952
22%
7,943
Retail online stores
873
841
2%
3,512
2,950
21%
5,483
Wholesale and third-party distribution
1,633
1,271
29%
4,933
3,217
58%
5,583
Total revenue
4,728
4,070
15%
14,383
11,118
33%
19,009
1
Pandora does not own any of the premises (Land and buildings) where stores are operated. Pandora exclusively operates stores from leased premises.
The use of sales channels for the distribution of Pandora jewellery depends on the underlying market maturity and
varies within markets but is consistent when viewed between segments.
NOTE 4 – Seasonality of operations
Due to the seasonal nature of the jewellery business, higher revenue and profits are historically realised in the second
half of the year (the fourth quarter).
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NOTE 5 – Financial risks
Pandora’s overall risk exposure and financial risks, including risks related to commodity prices, foreign currency, credit,
liquidity and interest rates, are described in the disclosures in note 4.4 in the consolidated financial statements in the
Annual Report 2020.
Outstanding committed loan facilities (end of September 2021)
Available facilities
DKK million
Maturity date
Drawn amount
DKK million
Available
liquidity
Revolving Credit Facilities
7,064
April 2026
2,008
5,056
Total
7,064
2,008
5,056
NOTE 6 – Derivative financial instruments
Derivative financial instruments are measured at fair value and in accordance with level 2 in the fair value hierarchy
(IFRS 13).
See note 4.5 to the consolidated financial statements in the Annual Report 2020.
NOTE 7 – Trade receivables
NOTE 8 – Business combinations
Pandora took over 29 concept stores in the US in the period 1 January – 30 September 2021 in two business
combinations. Net assets acquired mainly consists of inventory and non-current assets and liabilities relating to the
stores. The total purchase price for acquisitions made in the period 1 January – 30 September 2021 was DKK 66
million. Based on the purchase price allocations, goodwill was DKK 12 million. Goodwill from the acquisitions is mainly
related to the synergies from converting the stores from wholesale to Pandora owned retail. Of the goodwill acquired,
DKK 12 million is deductible for income tax purposes.
Costs relating to the acquisitions were immaterial and are recognised as operating expenses in the income statement.
Contribution to Group revenue and net earnings from acquisitions for the period 1 January – 30 September 2021
was DKK 163 million and DKK 49 million respectively. Had all acquisitions in 2021 taken place on 1 January 2021,
Group revenue and net earnings for the period 1 January – 30 September 2021 would have been approximately DKK
214 million and DKK 68 million.
Due to the continued activity related to take over of stores on an ad hoc basis there will, at any given time, be purchase
price allocations that have not been finalised at the time of reporting. Outstanding items in these are considered
immaterial.
DKK million
2021
30 September
2020
31 December
Receivables related to third-party distribution and wholesale
605
600
Receivables related to retail revenue sales
197
270
Total trade receivables
801
870
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ACQUISITIONS
DKK million
9M 2021
FY 2020
Other intangible assets
13
-
Property, plant and equipment
84
4
Inventories
34
4
Cash
-
-
Assets acquired
131
8
Non-current liabilities
50
2
Other current liabilities
27
1
Liabilities assumed
77
3
Total identifiable net assets acquired
54
5
Goodwill arising on the acquisitions
12
2
Purchase consideration
66
7
Cash movements on acquisitions:
Consideration transferred regarding previous years
-
5
Net cash flow on acquisitions
66
12
Business combinations after the reporting period
No acquisitions took place after the reporting period.
NOTE 9 – Goodwill
DKK million
2021
30 September
2020
31 December
Cost at 1 January
4,247
4,416
Acquisition of subsidiaries and activities in the period
12
2
Exchange rate adjustments
100
-170
Cost at the end of the period
4,359
4,247
No impairment indication was identified based on the information regarding the market and the forecast. The latest
impairment test was carried out in 2020 and given the development since then, there continues to be substantial
headroom between the carrying amount and the value in use.
NOTE 10 – Assets and liabilities related to leases
Amounts recognised in the balance sheet:
RIGHT-OF-USE ASSETS
DKK million
2021
30 September
2020
31 December
Property
2,534
2,975
IT
3
5
Cars
15
18
Other
9
10
Total right-of-use assets
2,561
3,007
Out of the total decrease of DKK 0.4 billion in right-of-use-assets in the period 1 January – 30 September 2021, DKK
0.7 billion relates to depreciation and currency exchange movement, partially offset by a net increase of DKK 0.3
billion as a result of renewals of lease contracts and new leases. The development in right-of-use-assets is further
affected by the timing of renewals of lease contracts and new leases including the negotiation of more favourable
leasing terms.
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LEASE LIABILITIES
DKK million
2021
30 September
2020
31 December
Non-current
1,748
2,066
Current
887
993
Total lease liabilities
2,635
3,059
Lease liabilities are recognised in loans and borrowings in the balance sheet.
Amounts recognised in the income statement:
RECOGNISED DEPRECIATION ON RIGHT-OF-USE ASSETS CHARGED TO THE INCOME STATEMENT FOR THE PERIOD
DKK million
1 January –
30 September 2021
1 January –
30 September 2020
Property
780
879
IT
1
1
Cars
7
8
Other
3
4
Total depreciation on right-of-use assets for the period
792
892
OTHER ITEMS RELATING TO LEASES
DKK million
1 January –
30 September 2021
1 January –
30 September 2020
Interest income from sub-leases
-
1
Interest expense
-72
-70
Total interest for the period
-72
-70
Costs recognised in the period for short term and low value leases were DKK 33 million (2020: DKK 30 million).
Expenses are recognised on a straight line basis.
Total cash outflow relating to leases was DKK 978 million for the first 9 months in 2021 (2020: DKK 807 million). This
comprises of fixed lease payments in scope of IFRS 16 of DKK 711 million (2020: DKK 579 million), variable lease
payments of DKK 162 million (2020: DKK 128 million), interest paid of DKK 72 million (2020: DKK 70 million) and short
term and low value leases of DKK 33 million (2020: DKK 30 million). Payments related to variable leases and short
term and low value leases are not included in the lease liabilities.
Due to COVID-19, Pandora has received rent concessions from landlords in 2021 amounting to DKK 51 million (2020:
DKK 88 million) of which DKK 10 million has been recognized in Q3 2021 (Q3 2020: DKK 36 million). In addition,
repayment of certain fixed leases has been negotiated and a cash settlement has been agreed with landlords and
deferred with immaterial effect in 2021 (2020: DKK 83 million).
Amendment to IFRS 16 Leases
In March 2021, the IASB issued Covid-19-Related Rent Concessions beyond 30 June 2021 - amendment to IFRS 16
Leases. The IASB extended the period of the relief to lessees arising as a direct consequence of the COVID-19
pandemic from 30 June 2021 to 30 June 2022. As a practical expedient, a lessee may elect not to assess whether a
COVID-19 pandemic-related rent concession from a lessor is a lease modification. A lessee that makes this election
accounts for any change in lease payments resulting from the COVID-19 pandemic-related rent concession the same
way it would account for the change under IFRS 16, if the change was not a lease modification.
Pandora applied the extension of the practical expedient for all contracts with rent concessions occurring as direct
consequence of COVID-19 and where it meets all conditions of the practical expedient.
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As a result, rent concessions have been recognised in the profit and loss statement in 2021 amounting to DKK 51
million (2020: DKK 88 million) under Sales and Distribution expenses.
Overall financing cash flow is positively impacted by approximately DKK 51 million in 2021 (2020: DKK 171 million)
due to rent relief and rent deferrals.
NOTE 11 – Trade payables
The Group generally accepts that vendors sell-off their receivables arising from the sale of goods and services to the
Group to a third party. Pandora has established a supply chain financing programme where vendors can sell off their
receivables from Pandora at attractive terms, based on invoices approved by Pandora, but at the bank's sole
discretion. Pandora is not directly or indirectly a party to these agreements. The amounts payable to suppliers
included in the supply chain financing programme are classified as trade payables in the balance sheet as well as in
the cash flow statement (working capital within cash flow from operations) and amounts to DKK 44 million at 30
September 2021 (DKK 32 million at 30 September 2020).
NOTE 12 – Contingent liabilities
Reference is made to note 5.1 to the consolidated financial statements in the Annual Report 2020.
NOTE 13 – Related parties
Related parties with significant interests
Other related parties of Pandora with significant influence include the Board and the Executive Management of this
Company and their close family members. Related parties also include companies in which the persons have control
or significant interests.
Transactions with related parties
Pandora did not enter into any significant transactions with members of the Board or the Executive Management,
except for compensation and benefits received because of their membership of the Board, employment with
Pandora or shareholdings in Pandora.
NOTE 14 – Store network, other points of sale development
Q3 2021
Q2 2021
Q3 2020
Growth
Q3 2021
/ Q2 2021
Growth
Q3 2021
/Q3 2020
Other points of sale (retail)
279
257
232
22
47
Other points of sale (wholesale)
3,256
3,274
3,655
-18
-399
Other points of sale (third-party)
570
564
576
6
-6
Other points of sale, total
4,105
4,095
4,463
10
-358
Executive
summary
Financial
highlights
Business
update
Revenue
review
Profitability
Cash Flow &
Balance sheet
Financial
guidance
Sustainability
Other events
& Contact
Financial
statements
Accounting
notes
3 NOVEMBER 2021 | INTERIM FINANCIAL REPORT Q3 2021 | COMPANY ANNOUNCEMENT No. 660 | page
35 | 37
NOTE 15 – Store network, concept store development
1
Total concept stores
O&O concept stores
Number
of concept
stores
Q3 2021
Number
of concept
stores
Q2 2021
Number
of concept
stores
Q3 2020
Growth
Q3 2021
/ Q2 2021
Growth
Q32021
/Q3 2020
Number
of concept
stores
O&O
Q3 2021
Growth
O&O
stores
Q3 2021
/ Q2 2021
Growth
O&O
stores
Q3 2021
/Q3 2020
US
386
389
401
-3
-15
186
7
33
China
219
216
236
3
-17
203
1
-22
UK
211
215
217
-4
-6
155
14
16
Italy
146
145
146
1
0
107
1
0
Australia
123
122
123
1
0
41
2
4
France
122
121
121
1
1
78
1
1
Germany
135
137
139
-2
-4
132
-2
-3
All markets
2,616
2,630
2,689
-14
-73
1,403
24
24
1
Includes 7 key markets measured on revenue for FY 2020. All markets with 10 or more concept stores can be found in the Excel appendix uploaded on
www.pandoragroup.com
NOTE 16 – Commodity hedging
It is Pandora’s policy to hedge at least 70% of the Group’s expected gold and silver consumption based on a rolling
12-months production plan. The below table illustrates the timing of the hedges related to the purchase of silver for
production, i.e. excluding the time lag effect from inventory to Cost of sales (when the product is sold). The time-lag
from use in production to impact on Cost of sales is usually 2-7 months.
HEDGED AND REALISED PURCHASE PRICES (AT USE OF THE SILVER AND GOLD FOR PRODUCTION)
USD / OZ
Realised in
Q3 2021
Hedged
Q4 2021
Hedged
Q1 2022
Hedged
Q2 2022
Hedged
Q3 2022
Gold price
1,849
1,810
1,805
1,799
1,790
Silver price
25.06
25.59
26.22
26.57
23.68
Commodity hedge ratio, %
Realised
70-100%
70-90%
50-70%
30-50%
NOTE 17 – Subsequent events
As described in “Other events” in the Management review, Pandora is not aware of events after 30 September 2021,
which are expected to materially impact the Group’s financial position.
Executive
summary
Financial
highlights
Business
update
Revenue
review
Profitability
Cash Flow &
Balance sheet
Financial
guidance
Sustainability
Other events
& Contact
Financial
statements
Accounting
notes
3 NOVEMBER 2021 | INTERIM FINANCIAL REPORT Q3 2021 | COMPANY ANNOUNCEMENT No. 660 | page
36 | 37
QUARTERLY OVERVIEW
DKK million
Q3 2021
Q2 2021
Q1 2021
Q4 2020
Q3 2020
Key financial highlights
Organic growth, %
14%
84%
13%
4%
-5%
Organic growth, % vs 2019
9%
13%
-3%
n/a
n/a
Sell-out growth incl. temporarily closed stores, %
5%
62%
21%
1%
-2%
Sell-out growth incl. temporarily closed stores, % vs 2019
9%
7%
-5%
n/a
n/a
Gross margin, %
1
75.5%
77.1%
76.3%
75.7%
78.1%
EBIT margin, %
1
20.2%
25.2%
20.1%
31.8%
17.2%
Consolidated income statement
Revenue
4,728
5,155
4,500
7,891
4,070
Earnings before interests, tax, depreciations and
amortisations (EBITDA)
1,393
1,762
1,416
2,896
1,045
Operating profit (EBIT)
957
1,301
903
2,212
467
Net financials
-137
-21
-92
96
-24
Net profit for the period
635
992
628
1,794
343
Financial ratios
Revenue growth, DKK, %
16%
79%
8%
-1%
-8%
Revenue growth, local currency, %
15%
85%
13%
4%
-5%
Gross margin, %
75.5%
77.1%
76.3%
75.4%
78.2%
EBITDA margin, %
29.5%
34.2%
31.5%
36.7%
25.7%
EBIT margin, %
20.2%
25.2%
20.1%
28.0%
11.5%
Effective tax rate, %
22.5%
22.5%
22.5%
22.3%
22.5%
Equity ratio, %
40%
44%
41%
37%
30%
NIBD to EBITDA, excl. restructuring costs
2
, x
0.5
0.4
0.6
0.5
1.1
Return on invested capital (ROIC)
2
, %
48%
44%
29%
25%
22%
Cash conversion incl. lease payments (excl. IFRS 16), %
53%
98%
-65%
171%
98%
Net working capital, % of last 12 months revenue
0.2%
-0.3%
-0.4%
-7.6%
0.0%
Stock ratios
Total payout ratio (incl. share buyback), %
211%
76%
-
-
-
Consolidated balance sheet
Total assets
18,173
18,277
19,211
19,984
18,932
Invested capital
11,141
11,136
11,675
10,540
12,544
Net working capital
50
-57
-76
-1,447
5
Net interest-bearing debt (NIBD)
3,819
3,005
3,735
3,151
6,862
Equity
7,322
8,130
7,940
7,389
5,682
Consolidated statement of cash flow
Cash flow from operating activities
885
1,586
-316
4,062
776
Capital expenditure (CAPEX), DKK million
201
138
88
124
117
Capital expenditure, property, plant and equipment (CAPEX), DKK million
96
64
35
78
97
Free cash flow incl. lease payments (excl. IFRS 16), DKK
502
1,278
-586
3,780
457
1
2020 numbers are excluding Programme NOW restructuring costs.
2
Ratios are based on 12 months’ rolling EBITDA and EBIT, respectively.
3 NOVEMBER 2021 | INTERIM FINANCIAL REPORT Q3 2021 | COMPANY ANNOUNCEMENT No. 660 | page
37 | 37
MANAGEMENT STATEMENT
EXECUTIVE MANAGEMENT
BOARD
DISCLAIMER
This company announcement contains forward-looking statements, which include estimates of financial performance
and targets. These statements are not guarantees of future performance and involve certain risks and uncertainties.
Therefore, actual future results and trends may differ materially from what is forecast in this report due to a variety
of factors.
