Approved at the Annual
General Meeting
16 March 2023
Chair
ANNUAL REPORT 2022
WE GIVE A VOICE TO PEOPLE'S LOVES
Pandora A/S ·
Havneholmen 17-19 · 1561 Copenhagen V · Denmark · CVR no. 28505116
WE GIVE
A VOICE TO
PEOPLE'S
LOVES
OUR PURPOSE
CONTENTS
2022
THE BIG PICTURE
5 At a glance
6 Letter to the shareholders
7 Executive summary
10 Highlights 2022
12 Five-year summary
13 Financial guidance 2023
CORPORATE
GOVERNANCE
35 Corporate governance
39 Board of Directors
41 Executive Leadership Team
43 Shareholder information
FINANCIAL
STATEMENTS
51 Consolidated nancial
statements
91 Management statement
92 Independent auditor's report
96 Parent Company nancial
statements
FINANCIAL
REVIEW
46 Group performance
48 Group protability
49 Balance sheet and cash ows
Sustainability Report
Our Sustainability Report provides detailed
information on sustainability and our responsible
business behaviour. The Sustainability Report
serves as our supplementary document to the
United Nations Global Compact Communication
on Progress, which will be submitted later in 2023
using the new CoP digital platform, and as such
is our disclosure in accordance with sections
99(a), 99(b) and 107(d) of the Danish Financial
Statements Act. The report is available at
Annual Report
Our Annual Report is our detailed annual
disclosure relating to company performance,
strategy, corporate governance and
financial results. The report is available at
pandoragroup.com/investor/news-and-
reports/annual-reports and at cvr.dk following
approval at the Annual General Meeting.
Remuneration Report
Our Remuneration Report includes full
disclosure of Board and Executive Management
remuneration. The report is available at
pandoragroup.com/investor/corporate-
governance/remuneration-reports.
OUR BUSINESS
17 Our business model
18 Our Phoenix strategy
23 Industry trends
25 People and sustainability
29 Managing risks
4
16
34
50
45
THE WORLD'S LARGEST
JEWELLERY BRAND
recycled silver and
gold purchased in 2022
61%
million customer visits to
our stores and online
>600
million pieces of jewellery sold,
corresponding to three pieces every second
103
employees
1
32,000
points of sale in more
than 100 countries
6,500
DKK billion revenue
26.5
Pandora
in Paris
Our holiday
campaign took
over the streets
of Paris in
December 2022.
1
Average headcount through the year.
AT A GLANCE
PandoraJewelry theocialpandora Pandora-a-s theocialpandora @Pandora_Corp @theocialpandora pandoragroup.com
ANNUAL REPORT 2022
set in 100% recycled silver and gold - was a significant
milestone that points to the future of luxury.
We are proud that our efforts are noted, and in 2022 we were
one of a small number of global companies to achieve an ‘A’
score from the leading climate organisation, CDP, for our cli-
mate action.
Pandora reacted quickly to the war in Ukraine, stopping all
business with Russia and Belarus in February 2022. Pandora
was also the first corporate partner to answer UNICEF’s call
for support for its Ukraine response with a swift donation of
USD 1 million. Since 2019, Pandora has donated a total of USD
10 million towards UNICEF through donations and special
jewellery collections.
Looking ahead, we see significant growth opportunities both in
mature and less-developed markets. Continuing to deliver on
our Phoenix strategy, we will protect profitability while investing
for growth through network expansion and other initiatives. We
will also keep progressing towards our ambitious sustainability
targets.
Our 2022 results have been achieved thanks to the extraordinary
commitment of our colleagues around the world in what has been
a very demanding year. We have captured this spirit in our new
global employer brand, Craft the Incredible, which helps us attract
top talent and build a great workplace. This was reflected in our
employee surveys, which showed very high engagement
levels,
placing us in the top 5% of benchmark companies worldwide.
On behalf of the Board and the Executive Leadership Team,
we extend our sincere gratitude and thanks to employees, cus-
tomers and shareholders for their continued trust in Pandora.
UNLOCKING
OUR POTENTIAL
Pandora launched the Phoenix strategy nearly two years ago
– a strategy designed to drive sustainable growth by leverag-
ing our key assets: strong brand awareness, a global distribu-
tion network and industry-leading manufacturing capabilities.
Since then, we have been executing exceptionally well on
our strategic priorities, and in 2022 we saw the potential of
Phoenix begin to unfold.
Despite the significant disruptions from war, inflation and
the pandemic, we met our guidance from the beginning of
the year, delivering record-high revenue for four consecutive
quarters and growth in most key markets. These results show
the strength and resilience of Pandora’s business model.
Our brand awareness remains unrivalled, and Pandora
Moments, the core of our business, continues to resonate
with thousands of consumers every day. We also launched
new platforms, like Diamonds by Pandora, and exciting
collaborations like Keith Haring and Marvel.
We are also progressing on our digital transformation.
We are increasingly able to personalise our marketing com-
munications based on our strong customer data. We are also
upgrading our digital infrastructure, which will improve the
customer experience across all touchpoints.
Pushing boundaries and reshaping the industry
We wish to lead the way on sustainability and are rethinking
how jewellery is designed and produced with the planet and
its people in mind. In 2022, we made important progress on
our ambition to become a low-carbon, circular, and inclusive,
diverse and fair business. Our North America launch of
Diamonds by Pandora - lab-created diamonds that are
grown, cut and polished using 100% renewable energy and
In a year marked by global instability, Pandora delivered
on its targets and strategy. We successfully grew our largest
platform, Pandora Moments, and pushed the boundaries
of our industry with the launch of Diamonds by Pandora.
We are well positioned to navigate the current economic
downturn and come out strong.
LETTER TO THE SHAREHOLDERS
PETER A. RUZICKA
Chair of the Board of Directors
ALEXANDER LACIK
President & Chief Executive Ocer
ANNUAL REPORT 2022 THE BIG PICTURE
2018 20202019 2021 2022
6.4
22.8
5.9
3.9
5.8
23.4
19.0
21.9
6.7
26.5
Wholesale and
third-party distribution
7,349m
28% share of revenue
2022 was another year of growth and significant strategic
progress for Pandora. In a year with unforeseen external
challenges, we delivered solid revenue growth in all quarters
and acted as a responsible industry leader as we continued
to execute on our Phoenix growth strategy.
In 2022, Pandora delivered record-high revenue of DKK
26.5 billion, corresponding to organic revenue growth of 7%
compared to 2021. The growth was delivered across most
product platforms and geographies and is a testimony to the
strategic investments made in the last couple of years. These
developments, combined with operational efficiency and
agile execution, laid the foundation for a very strong year.
Pandora delivered solid results despite difficult market
conditions such as COVID-19 in China, inflationary pressure
and the war in Ukraine, and managed to deliver on the 2022
guidance despite these unforeseen headwinds. Despite the
DELIVERING GROWTH
DURING EXTRAORDINARY
TURBULENCE
challenges seen in 2022, Pandora’s customers remain loyal
and the brand strong. Our strong foundation, the desirability
of our products and our affordable luxury proposition place
us in a good position against the uncertain geopolitical and
economic backdrop of 2023.
Our efforts to drive sustainability continue to play a central
role in creating a resilient business. Our actions to make
Pandora low-carbon, circular and inclusive, diverse and fair
are the right thing to do as a corporate citizen and will help
us mitigate against the impacts of climate change, the
significant regulatory shift that is underway, and growing
consumer expectations.
On 5 October 2023, we will host a Capital Markets Day to
update our shareholders on our continued execution on
and progress of the strategy.
OUR CHANNELS
Revenue, DKK, and share of revenue, %
OUR GROWTH JOURNEY
DKK billion
Pandora online
stores
5,612m
21% share of revenue
Pandora physical
stores
13,503m
51% share of revenue
1
Presented on the basis of the applicable accounting standards at the time.
2
2019 and 2020 figures exclude Programme NOW restructuring costs.
Revenue
EBIT
2
EXECUTIVE SUMMARY
ANNUAL REPORT 2022 THE BIG PICTURE
2022:
2021:
Growing the core while fuelling with more
Pandora launched the Phoenix strategy in May 2021 and
execution is on track.
In 2022, our Moments incl. Collabs segment represented
73% of total revenue and delivered sell-out growth of 5%.
Brand metrics are strong, the core Pandora Moments platform
is growing, and important steps to build new product plat-
forms have been taken. Growing Moments is a key pillar in
our Phoenix strategy.
In order to drive additional revenue growth on top of Pandora
Moments, Pandora is leveraging existing product platforms
and launching new product platforms that are within or close
to the existing core business. A good example is our lab-
created diamonds collection, Diamonds by Pandora. Following
a test launch in the UK in 2021, we successfully launched the
Diamonds by Pandora collection in North America in August
2022. This is our first collection made with 100% recycled
silver and gold. With this collection, we aim to democratise
diamond jewellery by making it accessible to a wider audience.
Pandora ME is another product platform designed to drive
additional revenue growth, which primarily targets Genera-
tion Z. In 2022, Pandora ME grew 40% compared to 2021.
The Diamonds by Pandora and Pandora ME platforms are
both part of our second segment, Style, which represented
a 27% share of our business and delivered sell-out growth
of -1%. Style also includes Pandora Timeless and Pandora
Signature.
Read more about our Phoenix growth strategy on page 18.
Our key markets
In 2022, sell-out growth continued to be positive across
most key markets.
Our largest market, the US, saw an expected decline in 2022
following extraordinary growth in 2021 fuelled by government
stimulus cheques. Compared to a cleaner pre-pandemic base
in 2019, the performance in the US remained strong with
53% organic growth. Pandora continues to see ample growth
opportunities in the US in the mid-term, coming from both
Style
1.
US
30%
DKK 7,907m
30%
DKK 7,026m
2.
UK
14%
DKK 3,802m
14%
DKK 3,314m
3.
ITALY
10%
DKK 2,580m
10%
DKK 2,443m
4.
GERMANY
5%
DKK 1,307m
5%
DKK 1,191m
6.
FRANCE
4%
DKK 1,190m
5%
DKK 1,122m
7.
CHINA
3%
DKK 737m
5%
DKK 1,126m
Read more about
segment and revenue
information
in note 2.1
.
73%
27%
Moments incl. Collabs
OUR SEGMENTS
Share of revenue,
% of total
PUSHING THE
BOUNDARIES OF
SUSTAINABLE
JEWELLERY
Diamonds by Pandora is
made with 100% recycled
silver and gold, and with
lab-created diamonds
produced using 100%
renewable energy.
OUR KEY MARKETS
Share of revenue
5.
AUSTRALIA
5%
DKK 1,271m
5%
DKK 1,131m
1
2
3
4
6
7
5
ANNUAL REPORT 2022 THE BIG PICTURE
Innovative design, responsible
sourcing and craftsmanship are at
the heart of Pandora. The picture
illustrates the stone-setting
process of crafting a hand-
finished piece of jewellery.
higher brand awareness and network expansion. In 2022, we ac-
quired 49 stores from franchise partners in the US and opened
net 32 new concept stores. A part of our strategy is to further
strengthen our presence in the US, not least on the West Coast.
Our key markets in Europe delivered positive sell-out growth
in 2022. In 2021, these markets were impacted by tempo-
rary store closures due to COVID-19, but they saw a strong
rebound in 2022. The UK and Germany delivered double-digit
sell-out growth rates following solid execution. In Italy, we
started to see an impact from a weak macro backdrop in
the second half of 2022, and sell-out growth ended at 5% in
2022. In France, we detoxed the promotional level and ended
the year with sell-out growth of 4%.
Australia delivered sell-out growth of 6%, driven by healthy un-
derlying business and an easier comparison due to COVID-19
temporary store closures in 2021. Performance in China was
significantly impacted by the continued and widespread
COVID-19 restrictions during 2022 and sell-out growth was
-47%. China is the largest jewellery market in the world and
represents a significant opportunity for us. We have previously
communicated that we aim to triple our business in China com-
pared to 2019, but have postponed our investment to trans-
form our business in China until market conditions stabilise.
Pandora’s business outside of its seven key markets contin-
ued to grow in 2022. The largest markets outside of the seven
key markets are Spain and Mexico, which ended the year with
a revenue of DKK 1.1 billion and DKK 1.0 billion respectively.
Brand momentum remains strong
Our strong brand momentum continued in 2022 and Pandora
maintained a leading brand position. Pandora’s global unaided
brand awareness remained well ahead of the closest com-
petitor, and Pandora ranked number one in five out of seven
key markets. We also launched our new loyalty programme,
My Pandora, in France and continued our network expansion
to strengthen our brand and business even further. Addition-
ally, Pandora initiated selected and careful price increases
across its portfolio of products.
Financial performance
Total revenue reached DKK 26.5 billion, corresponding to
revenue growth of 8% in local currency. The EBIT margin
remained strong at 25.5% in 2022.
Distributions to shareholders in 2022, including both divi-
dends and share buybacks, totalled DKK 5.1 billion, equal to
11% of the market cap of Pandora at the end of 2022. For
2023, the Board proposes a dividend of DKK 16 per share
and a new share buy-back programme of DKK 2.4 billion until
30 June 2023 with an intention to go up to DKK 5.0 billion
over the course of the next 12 months, assuming no material
deterioration in the macroeconomic climate.
Pandora in a strong position to manage
uncertain macro environment
During 2022, the macroeconomic environment continued to
deteriorate. Inflation and higher interest rates are impacting
consumers across many countries. Up until now, Pandora has
demonstrated a good level of resilience against these head-
winds. As a consequence of the macro headwinds, Pandora
is implementing several preemptive measures. Should a re-
cession scenario become a reality, Pandora will be in a strong
position to manage macroeconomic turbulence thanks to
the company’s robust business model, favourable margin
structure, strong cash generation, low financial leverage
and conservative capital structure. We have implemented
prudent cost measures and will continue to do so, and our
strong starting point will also enable us to continue to invest
and accelerate during a recession as required.
Sustainability: top
ambitions and ratings
As the world’s largest jewellery
brand, we wish to lead our industry
on sustainability – a foundational
pillar of our growth strategy,
Phoenix. Our targets include
halving carbon emissions by 2030,
shifting entirely to recycled silver
and gold by 2025, and achieving
gender parity in our leadership
no later than 2030. With our
lab-created diamond jewellery we
show how a transformative and
more sustainable future of luxury
can take shape. Our sustainability
performance and disclosure has
received top ratings from leading
organisations such as CDP, Sus-
tainalytics, MSCI, Nordea and the
Danish Institute for Human Rights.
Read more about sustainability
on page 25.
ANNUAL REPORT 2022 THE BIG PICTURE
THE BIG PICTURE
Expanding the
Pandora network
In 2022, Pandora opened net 88 new
concept stores, of which 32 were opened
in the US, as well as 130 new owned and
operated shop-in-shops, of which the
majority were opened in Latin America.
These openings are part of the roughly
600 locations across our top markets
identified as part of our Phoenix strategy,
where we see potential to drive profitable
growth by opening new stores. Of these
stores, 50% are in the US and China and
80% are concept stores. It is attractive
to open new stores, as the EBIT margin is
accretive to the Group. Additionally, there
is a short payback period on the initial
CAPEX investment and an attractive,
low-risk profile.
In 2023, we will further capitalise on
these locations by opening net 50 to 100
concept stores. Read more about our
network expansion on page 22.
HIGHLIGHTS
2022
Pandora stops
business with Russia
and Belarus
On the day Russia invaded
Ukraine, Pandora decided to
stop all business with Russia and
Belarus. We also informed our
suppliers and business partners
that Pandora will not accept raw
materials, products or services
supplied directly or indirectly
from Russia or Belarus.
Additionally, we donated USD 1
million towards UNICEF’s human-
itarian relief work in Ukraine.
Before the war, Russia and Belarus
accounted for less than 1% of our
total revenue, and the business
was handled by local distributors.
Pandora does not have any
remaining assets tied up with
these distributors, and we no
longer count their stores as part
of the Pandora network.
Pandora brings lab-created
diamonds to North America
In August, we launched our highly antic-
ipated Diamonds by Pandora collection
in the US and Canada. The collection
features lab-created diamonds that are
grown using 100% renewable energy and
that have a carbon footprint that is only
5% when compared to mined diamonds.
It is also the first Pandora collection to be
crafted with 100% recycled silver and gold.
ANNUAL REPORT 2022
A
THE BIG PICTURE
North American
headquarters relocates
to New York City
In December, we announced the open-
ing of Pandora's new North American
headquarters located at Times Square in
New York City. The new office will create
around 130 full-time jobs. New York is
the largest commercial market in the US
and one of the largest commercial mar-
kets in the world. The new headquarters
will place Pandora in closer proximity of
leading talent as we continue our long-
term growth ambition in the US, for
example to increase market share and
double revenue in the US compared
to 2019. Our North America Hub in
Baltimore will remain at the current
location through at least 2026, and both
the Baltimore corporate office and the
logistics centre in Columbia, Maryland,
remain open and integral to our US
business operations.
Collaborations to grow
business and build brand
Collaborations with other brands enable
Pandora to reach more consumers around
the globe, and we have increased our
focus in this space. Sales from collabora-
tions have tripled over the past five years.
2022 saw superheroes arriving to our
stores with the popular launch of our first
Marvel X Pandora collection. By the end of
the year, the 14 carat gold-plated Marvel
Iron Man was the fourth best-selling
charm in Pandora’s full charms assort-
ment, and the Marvel Infinity 14 carat
gold-plated ring saw huge popularity and
was the top three best-seller in the rings
category.
We also launched our first art collabora-
tion with the aim of expanding our brand
into new cultural universes. The collabora-
tion was inspired by the late street artist
and activist Keith Haring, who was part of
the legendary New York art scene during
the 1980s. The collection features Haring’s
colourful and symbolic works, including
the barking dog, angel baby and signature
bold lines.
Recognised with “A”
score for transparency
on climate change
Pandora’s leadership in corporate trans-
parency and performance on climate
change received recognition by the
global environmental non-profit CDP,
securing a place on its annual ‘A List’.
Based on data reported through CDP’s
2022 Climate Change questionnaire,
Pandora was one of around 2% of
CDP-evaluated companies to achieve
an ‘A’ out of nearly 15,000 companies
scored. This was a milestone in our
journey to become a low-carbon business.
pieces in the
Keith Haring X
Pandora collection
12
of our total revenue came
from the Marvel X Pandora
collection
2.4%
ANNUAL REPORT 2022
FIVE-YEAR SUMMARY
DKK million 2022 2021 2020 2019 2018
Financial highlights
Revenue 26,463 23,394 19,009 21,868 22,806
Organic growth, % 7% 23% -11% -8% -2%
Sell-out growth, (like-for-like), %
2
4% 20% -12% -8% -4%
Earnings before interest, tax, depreciation
and amortisation (EBITDA) 8,716 7,838 4,999 6,148 7,421
Operating profit (EBIT) 6,743 5,839 2,684 3,829 6,431
EBIT margin, %
3
25.5% 25.0% 20.4% 26.8% 28.2%
Net financials -210 -461 -190 1 151
Net profit for the period 5,029 4,160 1,938 2,945 5,045
Financial ratios
Revenue growth, DKK, % 13% 23% -13% -4% 0%
Revenue growth, local currency, % 8% 24% -11% -6% 3%
Gross margin, % 76.3% 76.1% 75.6% 72.7% 74.3%
EBITDA margin, % 32.9% 33.5% 26.3% 28.1% 32.5%
EBIT margin, % 25.5% 25.0% 14.1% 17.5% 28.2%
Effective tax rate, % 23.0% 22.6% 22.3% 23.1% 23.4%
Equity ratio, % 33% 38% 37% 24% 33%
NIBD to EBITDA, x
3
0.8 0.4 0.5 1.1 0.8
Return on invested capital (ROIC), % 48% 59% 25% 27% 53%
Cash conversion incl. lease payments, % 39% 88% 183% 133% 86%
Net working capital, % of last 12 months' revenue 4.2% -5.0% -7.6% -1.3% 6.7%
Capital expenditure, % of revenue 4.9% 2.7% 2.6% 3.8% 5.0%
DKK million 2022 2021 2020 2019 2018
Stock ratios
Total payout ratio (incl. share buyback), %
4
100% 115% 65% 147% 104%
Dividend per share, proposed for the year, DKK 16.0 16.0 - 9.0 9.0
Dividend per share, paid, DKK 16.0 15.0 - 9.0 9.0
Earnings per share, basic, DKK 54.2 42.1 20.0 30.3 47.2
Earnings per share, diluted, DKK 53.7 41.7 19.9 30.1 47.0
Consolidated balance sheet
Total assets 22,013 18,542 19,984 21,571 19,244
Invested capital 13,961 9,884 10,540 14,268 12,071
Net working capital 1,104 -1,181 -1,447 -293 1,536
Net interest-bearing debt (NIBD) 6,794 2,882 3,151 9,019 5,652
Equity 7,167 7,001 7,389 5,249 6,419
Consolidated statement of cash flows
Cash flows from operating activities 4,434 6,228 5,975 6,775 6,624
Capital expenditure – total 1,290 641 491 822 1,129
Capital expenditure – property, plant and equipment
929 341 369 556 753
Free cash flows incl. lease payments 2,602 5,137 4,908 5,075 5,558
Sustainability
Scope 1, 2 & 3 emissions, tonnes CO equivalent 280,370 277,450 266,075 296,777 n/a
Recycled silver and gold, total, %
6
61% 54% 57% 60% n/a
Leadership Team gender ratio, female/male, %
7
29/71 23/77 n/a n/a n/a
1
Comparative figures have not been restated following the adoption of IFRS 16 Leases.
2
Sell-out growth includes sell-out from all concept stores, including partner owned and Pandora online. Sell-out growth is a like-for-like KPI and includes
stores which have been operating for +12 months and stores which are temporarily closed due to COVID-19. Other points of sales are not included in
sell-out growth.
3
2019 and 2020 figures exclude Programme NOW restructuring costs.
4
Excluding sale of treasury shares amounting to DKK 1.8 billion in Q2 2020.
5
Within limited assurance scope. The scope 2 emissions are calculated as market-based emissions. All emissions are in metric tonnes,
as aligned with the Greenhouse Gas Protocol.
6
Within limited assurance scope.
7
The Leadership Team comprises Vice Presidents, Senior Vice Presidents, members of the Executive Leadership Team and the Board of Directors.
ANNUAL REPORT 2022 THE BIG PICTURE
macroeconomic uncertainty and, as usual, will be narrowed
as visibility improves through the year. The low end of the
organic growth range would require a worsening of trading
conditions relative to today.
Whilst predicting near-term sales trends is currently chal-
lenging, Pandora’s strong brand position, solid financials, flex-
ible business model and position in affordable gifting make
the company well equipped to weather a potential recession
and at the same time seize relevant investment opportuni-
ties which may arise.
Revenue guidance
Pandora is currently planning for sell-out growth of flattish to
a decline of mid-single digits, depending on how macroeco-
nomic conditions progress through the year. Continued net-
Resiliency in an uncertain environment
The economic outlook for 2023 remains highly uncertain. High
inflation and rising mortgage rates suggest that consumer
spending will come under pressure. The brand has demonstrat-
ed strong resilience since macroeconomic conditions started
to worsen during 2022, and current trading remains encourag-
ing. For now, Pandora has seen some, but only limited, signs of a
shift in consumer spending. Nonetheless, Pandora will plan for
a range of scenarios, including a weakening of the current mac-
roeconomic backdrop. Our guidance considers external factors,
our own internal brand initiatives and current trading to form an
initial wide range.
Pandora is therefore currently targeting an organic growth
of -3% to 3% and an EBIT margin of Around 25%. The wid-
er-than-normal revenue guidance range reflects the elevated
ORGANIC GROWTH
-3% to 3%
EBIT MARGIN
Around 25%
work expansion is expected to add 2 to 3 percentage points
to growth and help lift organic growth to -3% to 3%. Forward
integration is expected to add around 1% revenue with reve-
nue growth in local currency ending at -2% to 4%.
The organic growth guidance can be illustrated as shown
above.
Profitability guidance
The EBIT margin guidance for 2023 is Around 25% and can
be illustrated as shown on the following page. Temporary
and non-recurring costs from 2022 drive a tailwind of 0.8
percentage points. Structural cost reductions and the price
increases implemented in Q4 2022 will be funding the invest-
FINANCIAL
GUIDANCE 2023
1
Sell-out growth (like-for-like) including temporarily closed stores.
ORGANIC GROWTH GUIDANCE
Percentage point approximations
2022
actuals
Sell-out
growth
1
Flattish
to mid
single-digit
decline
Network
expansion
Phasing of
sell-in &
other
2023
guidance
Forward
integra-
tion
Local
currency
growth
Foreign
exchange
2023
revenue
26.5
DKK billion
DKK billion
-1%2-3%
-3% to 3%
1% -2% to 4% -2%
25.4-27.0
ANNUAL REPORT 2022 THE BIG PICTURE
ments in our Phoenix strategy initiatives and future growth.
Higher-than-normal salary increases are expected to suppress
the EBIT margin by 1.0 percentage points. Foreign exchange
rates and commodity assumptions per 31 January 2023
currently represent a net headwind of 0.4 percentage points.
Lastly, operating leverage will mainly decide where Pandora
will end the year. The guidance also allows for an additional el-
ement of cost flexibility which could be utilised depending on
the growth outcome. The EBIT margin phasing through the year
is expected to be slightly more skewed towards the second
half than usual. This reflects, among others, phasing of costs,
hedged silver prices and foreign exchange rates.
2023 guidance – other parameters
Pandora expects to open net 50 to 100 concept stores and
50 to 100 owned and operated other points of sales in 2023.
CAPEX is expected to end at around 6% share of revenue,
primarily driven by investments into the store network, dig-
ital initiatives and crafting facilities. The effective tax rate is
expected to be 23% to 24%, unchanged from last year.
Capital Markets Day September
2021– financial targets
Pandora hosted a Capital Markets Day (CMD) in September
2021 and provided the following financial targets:
• 5-7% organic growth CAGR from 2021 to 2023
• 25-27% EBIT margin in 2023
Since the targets were communicated in September 2021,
the geopolitical and macroeconomic situation has worsened
significantly. Additionally, the 2023 targets did not include
any impact from COVID-19, which had a severe negative
impact on the performance in China in 2022. As previously
mentioned, the impact of these factors on the 2023 CMD
targets is uncertain but despite the headwinds the new 2023
EBIT margin guidance is just within the targeted range. In
relation to the organic growth target announced at the CMD,
the outcome is somewhat dependent on macroeconomic
conditions, but the upper end of the new 2023 guidance
would also see Pandora within the targeted CMD range.
Capital structure policy and
cash distribution
At the end of 2022, Pandora’s leverage ratio was only 0.8x
NIBD to EBITDA and consequently at the lower end of the
capital structure policy range of 0.5x to 1.5x. The increased
leverage of 0.4x versus 2021 primarily reflects significant
cash distributions to the shareholders as well as increased
inventories and higher CAPEX through the year.
During 2022, Pandora paid out DKK 5.1 billion to its share-
holders, equivalent to 11% of market cap as of 31 December
2022. DKK 1.5 billion was distributed as an ordinary dividend
of DKK 16 per share and DKK 3.6 billion were distributed
through share buybacks.
Pandora continues to be highly cash-generative and has ample
liquidity to continue cash distributions to shareholders. Pan-
dora has decided to update its dividend policy from previous-
ly targeting a 2% dividend yield to now paying a progressive
dividend (stable to increasing dividend per share). For 2023,
the Board proposes a dividend of DKK 16 per share and a new
share buyback of DKK 2.4 billion until 30 June 2023 with an in-
tention to go up to DKK 5.0 billion over the course of the next
12 months, assuming no material deterioration in the macro-
economic climate. The total cash distribution of DKK 6.4 billion
will be the highest in Pandora’s history. The Board already has
the authority to initiate a share buyback at any point in time.
Disclaimer: the guidance contains forward-looking statements, which include estimates of financial performance and targets. These state-
ments 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. Please also refer to the full disclaimer on page 90.
FOREIGN EXCHANGE AND COMMODITY
ASSUMPTIONS AND IMPLICATIONS
AS OF JANUARY
Average
2022
Average
2023
Financial impact
2023 Y-Y
USD/DKK 7.07 6.87
THB/DKK 0.20 0.20
GBP/DKK 8.73 8.45
CNY/DKK 1.05 1.02
AUD/DKK 4.91 4.81
Silver/USD (per ounce) 24.9 22.7
Revenue (DKK million) Approx. -500
EBIT (DKK million) Approx. -225
EBIT margin (foreign exchange) Approx. -1.0%
EBIT margin (commodities) Approx. 0.6%
EBIT MARGIN GUIDANCE BRIDGE
Percentage point approximations
Cost
reductions
& price
increases
Phoenix
investments
Temporary/
non-recurring
costs
2022
actuals
25.5%
0.8%
1.1% -1.0%
Annual
salary
increases
-1.0%
Foreign
exchange
Operating
leverage
(mid-point)
-1.0%
Commodities
0.6%
0.0%
2023
guidance
Around
25%
ANNUAL REPORT 2022 THE BIG PICTURE
STORY
“
1 2 3 4 5 6 7 8
Pandora, a line of lab-created diamond
jewellery currently available in UK, the
US and Canada. The US is the world’s
largest market for diamond jewellery,
and we aim to transform the market with
more affordable products that also have
reduced carbon emissions.
“A diamond is a diamond. Thanks to
innovation, lab-created diamonds are
exactly the same and just as beautiful
as mined diamonds, but grown in a
lab instead of mined from the ground.
We want to make diamond jewellery
accessible to a wider audience and for
more occasions. Diamonds are not only
forever, but for everyone,” says Joshua
Braman, Senior Vice President, Diamond,
Pandora.
Diamonds grown in the US
with low carbon emissions
Lab-created diamonds have the ex-
actly same optical, chemical, thermal
and physical characteristics as mined
diamonds and are graded by the same
standards known as the 4Cs – cut, co-
lour, clarity and carat. Our lab-created
diamonds are grown, cut and polished
using 100% renewable energy and have
a carbon footprint that is only 5% when
compared to mined diamonds. Pandora
no longer uses mined diamonds.
LAB-CREATED
DIAMONDS POINT
TO THE FUTURE
OF LUXURY
In the 1950s, scientists succeeded in
creating the first diamonds in a lab. The
diamonds were initially used mostly for
industrial purposes, but in recent years
the technology and quality have im-
proved, and today lab-created diamonds
are a growing part of the market for
diamond jewellery.
Following a successful test launch in the
UK, Pandora introduced Diamonds by
The lab-created diamonds are grown
in the US and point to a future of
low-carbon diamonds for jewellery. For
perspective, if all diamonds were mined
with the same low-carbon footprint as
our lab-created diamonds, it would save
more than 6 million tonnes of carbon
emissions annually – equivalent to
replacing all cars in New York City with
electric cars.
First collection with 100%
recycled silver and gold
To further reduce the climate impact of
our jewellery, it is the first Pandora col-
lection crafted with 100% recycled silver
and gold. This brings the greenhouse
gas emissions of the collection’s entry
product – a silver ring with a 0.15 carat
lab-created diamond (USD 300) – down
to 2.7 kg CO
2
e, which is equal to the aver-
age emissions of a t-shirt.
The new collection is a significant break-
through for Pandora, as the company has
committed to craft all its jewellery from
recycled silver and gold by 2025.
A growing market
The global diamond jewellery market is
a USD 84 billion industry. Lab-created
diamonds currently account for around
10%, but the segment is growing faster
than the rest of the market. North
America is the largest market for
lab-created diamond jewellery.
Begins with tiny seeds of
high-quality lab-created
diamonds
Seeds placed in
vacuum chamber with
very high heat
Chamber lled
with carbon-rich gas
Using 100% renewable ener-
gy, microwave energy heats
the gases and gas molecules
break apart
Carbon atoms bond to
the seeds and they grow
one layer at a time
The lab-created diamonds
are cut and polished using
100% renewable energy
Pandora chooses
lab-created diamonds
with high-quality grading
Lab-created diamonds
are set in jewellery crafted
using 100% recycled
silver and gold
One of my recent customers
was very excited about
Pandora’s sustainable
jewellery, as she was looking
for a gift to celebrate her
granddaughter’s PhD degree
in Environmental Science.
She was stunned by the
0.5ct lab-created diamond
necklace, which became a
surprise gift for the occasion.
MELISSA
Store Manager
ANNUAL REPORT 2022 STORY
“
OUR
BUSINESS
I love getting to know each
and every customer’s story.
I think it is truly unique for
my job. I value every step
of helping my customers
to anchor unforgettable
moments and to find
self-expression through
Pandora’s jewellery.
ANGIE
Sales Associate, Italy
17 Our business model
18 Our Phoenix strategy
23 Industry trends
25 People and sustainability
29 Managing risks
ANNUAL REPORT 2022
OUR BUSINESS
MODEL
BUY
INPUT
BUSINESS ACTIVITIES OUTPUT OUTCOME
Every day, millions of people express who they are and what
matters to them with their Pandora jewellery. Whether it is a display
of friendship or romance, or a love for art, gardening or our planet.
Our jewellery is a way to show these loves. That is our purpose:
We give a voice to people’s loves.
Crafting
at scale
Strong
marketing
and brand
Omnichannel
retail
operations
Design
inspired by
art and data
Efficient
distribution
Affordable
luxury with
sustainability
integrated from
source to sale
Industry-leading
profitable
growth
Natural resources:
Raw materials,
water and energy
Community:
Employees and
stakeholder engagement
Innovation:
Data and
design
Manufacturing:
Crafting facilities
Supply chain:
Supplier partnering
Financial:
Cash flows
Natural resources:
Processed materials,
emissions, waste and
waste water
Community:
Job creation and
tax contribution
Innovation:
Relevant and
personalised products
Manufacturing:
High-quality products
Supply chain:
Sustainable supply chain
Financial:
Shareholder returns
Responsible and
circular sourcing
ANNUAL REPORT 2022 OUR BUSINESS
B
R
A
N
D
G
R
O
W
T
H
P
I
L
L
A
R
S
V
A
L
U
E
S
D
E
S
I
G
N
P
E
R
S
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N
A
L
I
S
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O
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P
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A
T
I
O
N
S
C
A
L
E
E
X
C
E
L
L
E
N
C
E
WE GIVE
A VOICE TO
PEOPLE’S
LOVES
W
E
C
a
r
e
W
E
D
r
e
a
m
W
E
D
a
r
e
W
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v
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r
C
O
R
E
M
A
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K
E
T
S
F
O
U
N
D
A
T
I
O
N
Phoenix has four growth pillars aiming at delivering
sustainable and profitable revenue growth: brand, design,
personalisation and core markets. Phoenix centres around
the significant untapped opportunities within Pandora’s core
business. The gross list of opportunities is rich, and we have
deliberately prioritised the most important to guide
decision-making and the allocation of resources.
OUR PHOENIX
STRATEGY
In 2021, we launched our Phoenix growth
strategy with our purpose, We give a voice
to people’s loves. During 2022, we saw good
progress across our Phoenix initiatives,
which we will continue to build on in 2023.
On 5 October 2023, we will host a Capital
Markets Day to give an update on our
Phoenix strategy.
Phoenix builds
on our strong
foundation and
is focused on
the significant
untapped
opportunities
in Pandora's
core business.
ANNUAL REPORT 2022 OUR BUSINESS
Growth pillar 1: Brand
Pandora is a global affordable luxury brand with a high level
of consumer awareness, strong brand equity, and a loyal
customer base.
Our strong brand momentum continued in 2022 and
Pandora maintained a leading brand position. Pandora’s
global unaided brand awareness remained well ahead of the
closest competitor, and we ranked number one in five out
of seven key markets.
To ensure that Pandora continues to excite customers and
win the hearts of the new generations, we focus on increasing
brand desirability. Using behavioural science, data analytics
and social listening to understand our consumers, we can
create more engaging, authentic and culturally relevant brand
experiences across all touchpoints, including products,
campaigns, stores, the selling ceremony, online and more.
Over the past years, we have increased our media invest-
ments considerably, and we will continue to invest at a
competitive level to maintain brand awareness leadership in
today’s complex and fragmented media landscape.
Pandora’s
global
unaided brand
awareness
remained
well ahead of
the closest
competitor,
and we ranked
number one
in five out
of seven key
markets.
No. 1
ANNUAL REPORT 2022 OUR BUSINESS
The Pandora
product universe
Moments incl. Collabs
Pandora Moments, home of our iconic snake chain
bracelet and ten different jewellery themes, is the
core of our business. It allows for self-expression,
modern storytelling and collectability. We also col-
laborate with well-known brands to create jewellery
with characters and icons from universes like Marvel,
Walt Disney and Pixar. In total, Moments incl. Collabs
accounts for 73% of revenue.
Style
To fuel our brand with incremental growth, we offer our consumers
additional collections. In total, Style accounts for 27% of revenue.
Pandora Timeless offers sparkling
modern classic design with a twist and
includes Pandora Timeless Wish with
its wishbone motifs and distinct mesh
bracelets from Pandora Reflexions.
Pandora ME pays tribute to a Genera-
tion Z mindset in a uniquely bold and
customisable link chain design and
styling accents to reflect every aspect
of their personality.
Diamonds by Pandora seeks to democ-
ratise diamonds by using lab-created
diamonds elevated in designs of floating
and unique shapes lending a stand-alone
luxurious expression.
Another collection is Pandora Signature,
characterised by the Pandora logo, pavé,
hearts and beads adding a geometric
dimension and linear aesthetic.
Growth pillar 2: Design
Pandora has three clear design priorities: drive the core
(Moments), fuel the brand with more platforms, and establish
dedicated support models for each platform.
Pandora’s original charms and bracelet offering, Moments, has
formed the basis for the company’s success over the past two
decades. Today, Moments incl. Collabs accounts for 73% of total
revenue. We see ample opportunities to continue growing the
Moments business by ensuring a strong pipeline of innovation
behind charms and charm carriers, personalisation and collabo-
rations. Combined with commercial focus and visibility, this will
ensure we build on our core strength.
To fuel the brand with more, we added new product platforms
to our assortment which are designed to target specific con
-
sumer segments and drive incremental growth. New platforms
are considered low-risk opportunities, as they are built on
existing assets and infrastructure. When going to market, we in
-
troduce new platforms in steps to test, learn and adjust before
potentially scaling up. In 2022, we continued to roll out new
platforms such as Pandora ME and Diamonds by Pandora. In
2022, Pandora ME generated 40% in sell-out growth compared
to 2021 and we continued to diversify the platform’s proposi
-
tion by launching the first gold-plated pieces in October. These
gold-plated pieces accounted for a 16% share of revenue
within Pandora ME in the fourth quarter. Diamonds by Pandora
delivered sell-out growth of 130% and ended the year
at DKK
213 million in revenue. In 2022, the 0.15 carat lab-created
diamond ring was the bestseller among our customers.
In addition, strategic collaborations continue to drive growth.
The Marvel collaboration was successfully launched with the
goal of further expanding brand awareness and building
other co-created universes. In 2022, two Marvel collections
were launched and accounted for 2.4% of our total revenue.
ANNUAL REPORT 2022 OUR BUSINESS
markets.
We also see growth opportunities outside our key
markets, for example in Spain, Canada and Latin America.
Mexico is one example of a market in which growth opportuni-
ties have been successfully exploited. Pandora entered Mexico
in 2017 and has achieved strong growth in a relatively short
time span: revenue increased from DKK 122 million in 2017 to
DKK 994 million in 2022.
Read more about our geographical performance in our
Financial review on page 45
.
Our strong foundation
To succeed with the four growth pillars in our Phoenix
strategy, we are building on our strong foundation.
People — We work as a world-class team, leveraging our global
presence. Our operating model enables us to deliver a strong
and consistent customer shopping experience while we
constantly refine our ability to work as one global company
with one brand expression, shared processes and clear roles.
We strive to create a healthy performance culture powered by
innovative digital solutions where we craft the incredible.
Read more about people efforts on page 25
.
Digitalisation — The solid digital foundation we have built
enables us to deliver on our strategy. This includes more use
of data and advanced analytics, modern IT solutions, and
many other aspects of digitalising our business. We are also
unifying the tech and data platform that drives Pandora
today. We also invest in the back-end systems at our crafting
facilities, in our supply chain and in a new Enterprise
Resource Planning (ERP) system, which will support and
further enhance our digital foundation.
Sustainability — We believe high-quality jewellery, strong
business performance and high ethical standards go hand in
hand, and we craft our jewellery with respect for resources,
environment and people. Our ambition is to be an industry
leader in sustainability. We strive to become a low-carbon
and circular business that is also inclusive, diverse and fair
with a positive impact across our entire supply chain.
Read more about sustainability on page 25
.
Excellence — We will continue to improve our operational
excellence, expand and leverage our profitable store network
and continue embedding a cost-conscious mindset.
Scale — Pandora is the largest jewellery manufacturer in the
world, and we will continue to strengthen this part of our
organisation to benefit from our scale. Through an integrated
and sustainable supply base we will enable consumer-centric,
innovative products while at the same time driving continuous
optimisation of cost, quality and service. In 2022, we took the
first steps towards our new factory in Vietnam. As a result, we
decided to reorganise the legal structure and consolidate our
crafting activities into a separate manufacturing
sub-group. Read more about the intra-group
restructuring in note 3.3
in the Parent
Company financial statements.
Growth pillar 3: Personalisation
A key strength at Pandora is the direct relationship to mil-
lions of consumers through our strong owned and operated
retail network and online touchpoints. This connection pro-
vides rich insights on purchase history, website visits, email
and paid media, allowing Pandora to offer a better and more
personalised service throughout the customer journey.
In 2022, we launched the Personalisation Centre of Excellence
as the focal point for these efforts. The team works in
cross-functional “pods” based on mixed disciplines spanning
marketing, data science and technology. Each pod is respon-
sible for a critical customer group (for example repeat buyers
or gifters) and has specific goals to achieve (for example the
number of occasions where a gifter buys Pandora).
To further drive personalisation, we launched the loyalty
programme My Pandora in France. By offering members
exclusive benefits and effectively gathering customer data,
the programme has proven to significantly increase customer
value. My Pandora has over 520,000 members in France and
will be rolled out to more markets in 2023.
Growth pillar 4: Core markets
Pandora has a rich and diversified geographical presence
across the world. There are ample opportunities to grow
both our seven key markets and other markets.
The markets with the highest potential for growth are the US
and China, where our network footprints are underpenetrat-
ed. Additionally, the Pandora brand is not as strong in these
markets as in the UK, Italy and Australia, so there is potential
to drive revenue growth through higher brand awareness.
Markets like France and Germany also represent opportunities
for growth, as brand awareness is relatively low in these
Best-selling
bracelet
with 1.2
million
pieces sold
Our bracelets remain
popular among our
consumers as they
enable them to
express themselves
through beautiful
Pandora charms. In
2022, our heart-lock
Moments bracelet
was our best-selling
bracelet with more
than 1.2 million
pieces sold.
ANNUAL REPORT 2022 OUR BUSINESS
STORY
Central store in
New York City
The new incredible Evoke
store on Fifth Avenue in
New York City is a great
addition to our network
in the US. It is strategically
positioned to increase
brand accessibility to our
customers in the southern
part of Manhattan.
In 2022, we added 80 owned and oper-
ated concept stores through forward
integration, including two large franchise
acquisitions in North America. We took
over 37 stores from Ben Bridge Jeweler,
primarily on the US West Coast, and 13
stores from Panbor in Las Vegas.
We also acquired 25 concept stores and
nine shop-in-shops from our Portuguese
distributor, Visão do Tempo, to assume
full ownership of the business in Portugal.
“Our strong store network expansion
and optimisation efforts during 2022
EXPANDING
THE PANDORA
NETWORK
accretive, have a short payback period,
and the risk is low.
Another element in Pandora’s network
strategy is forward integration by taking
over partner stores. We assess possible
transactions on a case-by-case basis,
for example when a franchise contract
expires or if a partner wishes to exit the
business. We evaluate each opportunity
on a number of parameters, including
performance, future potential, opera-
tional set-up, proximity to other Pandora
stores, and scale.
We see significant potential in making
our brand more accessible in many of our
markets, and in 2022 Pandora opened
net 88 new concept stores and net 130
owned and operated shop-in-shops.
These stores are part of approximately
600 locations across our top 40 markets
that we have identified as the most at-
tractive opportunities to drive profitable
growth. The locations were selected
based on a detailed mapping and
evaluation of 13,000 global locations.
The business case for opening new stores
is attractive. New stores are EBIT margin
have resulted in a record number of
new openings with stellar performance
across the board while simulataneously
improving the quality of our existing
physical footprint. We expect this to
continue during 2023 with most of the
activities taking place in North America,
Latin America and parts of Asia,” says
Kai Aejmelaeus, Senior Vice President,
Omnichannel Network, Pandora.
In 2023, we expect to open net 50 to 100
concept stores and net 50 to 100 owned
and operated shop-in-shops.
ANNUAL REPORT 2022 STORY
In 2022, we announced plans to build a new
crafting facility in Vietnam, our first outside Thailand.
RESPONDING
TO A CHANGING
WORLD
Changes and global trends emerge that require
businesses to adapt and respond. For Pandora,
four major industry trends are of particular
relevance to our Phoenix growth strategy.
Macroeconomic uncertainty
The business landscape continues to undergo changes,
some of which have been accelerated by uncertainty shocks
like the pandemic, the Russian invasion of Ukraine, and global
supply chain disruptions and product shortages. According
to McKinsey’s Consumer Pulse
1
conducted in the US, con-
sumers are twice as pessimistic about the economy today as
they were throughout the pandemic.
PANDORA’S RESPONSE
Even though Pandora relies on discretionary consumer
spending, the fact that the majority of our revenue is gener-
ated from gifting and our affordable positioning provides a
level of resilience. Pandora is also in a healthy position due
to our favourable margin structure, strong cash generation
and low financial leverage. A stress-test of Pandora’s financial
capacity shows the company would still be highly profitable
even in a deep recession scenario. We saw proof of that in
2020, when the pandemic hit the hardest and yet the EBIT
margin for 2020 landed above 20%. We have fully variable ex-
penses that are mainly related to cost of goods sold, point-
of-sale materials, variable rent, freight costs and variable
salary. Additionally, most of our marketing expenses, which
accounted for 14.1% of revenue in 2022, can be adjusted
with short notice.
To mitigate risk related to macroeconomic uncertainty, we
already took several precautionary measures in 2022 by re-
ducing costs and reprioritising non-urgent initiatives such as
postponing expansion plans in Thailand. Further cost actions
are currently being taken. We also announced plans to build
a new crafting facility in Vietnam, our first outside Thailand.
By diversifying our geographical footprint, we become more
resilient to potential supply disruptions. Read more about
management’s judgements and estimates on page 58.
A seamless customer experience
While the physical store experience remains essential in an
industry that is all about experiencing the product, consum-
er demand for digital shopping has accelerated significantly
during the pandemic, and so has consumers’ expectations to
omnichannel services. Not least mobile shopping is moving
rapidly, with the global mobile commerce market valued at
USD 268 billion in 2021, expected to grow at a Compound
Annual Growth Rate (CAGR) of 27% until 2030.
PANDORA’S RESPONSE
To provide a seamless omnichannel shopping experience
that meets our customers’ preferences, Pandora has invested
significantly in digital capabilities in recent years. In 2022, we
migrated our largest market to a new e-commerce platform
optimised for mobile usage, and remaining markets are
scheduled for 2023. Reflecting a positive consumer response,
our online Net Promoter Score was 5 percentage points higher
compared to 2021 and exceeded our target for 2022.
In 2022, we also optimised our Click & Collect process
further so that we are now able to deliver to customers in
as little as two hours to meet last-minute gifting needs and
launched our new loyalty programme, My Pandora, in France.
1
McKinsey 2022.
INDUSTRY TRENDS
ANNUAL REPORT 2022 OUR BUSINESS
Running the business, sustainably
The requirements on global brands to operate with high
standards of responsible business across the sustainabil-
ity agenda continue to increase. Local governments are
increasing regulation, investors assess the sustainability
performance, and many consumers are highly engaged in the
debate. The correlation between average consumer pref-
erence and brand credentials in sustainability is still largely
uncharted, but indications are that groups of consumers
attach increasing importance to the subject when making
their purchasing decisions. Research from Boston Consulting
Group
1
found that 38% of consumers switched from their
preferred clothing brand to one with better environmental
and social practices.
PANDORA’S RESPONSE
As part of the Phoenix strategy, we wish to lead the way on
sustainability in the industry by becoming a low-carbon,
circular, and inclusive, diverse and fair business. In 2022,
New ways of working
COVID-19 has changed office routines across the world.
Flexible ways of working were born in response to the
pandemic but have since become a desirable job feature that
many employees expect their employer to provide. McKinsey’s
American Opportunity Survey
2
conducted among American
respondents shows that when people have the opportunity
to work flexibly, 87% take it. To attract and retain talent, many
companies are introducing solutions that meet employees’
expectations to flexibility and a healthy work-life balance.
PANDORA’S RESPONSE
Pandora is investing in the long-term well-being of our
employees, and our FutureWork principles for office
employees support new ways of working. New flexible
working policies include guidelines for virtual meetings,
a new e-learning platform, and a new digital people portal
that focuses on development, goal setting and career growth.
We have also introduced role model awards, expanded
our incentive programme, and launched digital tools for
day-to-day work and career growth.
Hiring top talent is essential for the continued growth of
Pandora, and in 2022 we launched a new employer brand,
Craft the Incredible, to attract great talent. We also built a
strong global recruitment team, opened a global Digital Hub
in London and moved our North American headquarters to
New York City to access an even larger talent pool.
Read more about our people efforts on page 25.
we made strong progress on our ambitious targets. We
launched the Diamonds by Pandora collection in North
America, featuring lab-created diamonds that are grown,
cut and polished using 100% renewable energy and set in
100% recycled silver and gold. We formalised our human
rights programme with a focus on key business areas where
impacts to people are highest. In 2022, we also conducted
a global employee listening survey with focus on inclusivity.
The survey showed an 86% inclusion score, above our
2025 target of 85%.
Through Pandora’s long-standing partnership with UNICEF,
we support children and adolescents around the world
through learning and skills development, rights awareness
and gender equality activities, just as we supported
UNICEF’s emergency relief work in Ukraine.
For the seventh consecutive year, we received the highest
ranking in MSCI’s annual sustainability rating.
1
Watchwire 2021.
2
McKinsey 2022.
Recyclable
silver dust
Silver dust is a
by-product of our
crafting process. Silver
dust is just as valuable
as silver grains and is
part of our recycled
metals process.
ANNUAL REPORT 2022 OUR BUSINESS
ANNUAL REPORT 2022 OUR BUSINESS
We are guided
by four values:
We
Dream
We
Dare
We
Care
We
Deliver
ANNUAL REPORT 2022 OUR BUSINESS
Our
sustainability
priorities
LOWCARBON
BUSINESS
CIRCULAR
INNOVATION
INCLUSIVE,
DIVERSE AND FAIR
CULTURE
ANNUAL REPORT 2022 OUR BUSINESS
UN SDGs
3
Achieved progress against target
Increase in emissions compared to baseline
Yet to be achieved
2019 2021: 54%
2022: 61%
2025
2019
2019
2021: 255,290
2022: 264,224
2022: 6%
2030
2030
SCOPES , AND
RECYCLED SILVER AND GOLD
SCOPE
(tonnes CO
2
e)
2019 2021: 22 ,16 0
2022: 16,146
2025
SCOPES AND
(tonnes CO
2
e)
ANNUAL REPORT 2022 OUR BUSINESS
OUR BUSINESS
At Pandora, we carefully monitor and
assess potential risks to the company
on an ongoing basis.
MANAGING
RISKS
Our approach to risk management
Our enterprise risk management is focused on early identification
and assessment of risks followed by mitigating actions to protect
the business. We see a well-functioning risk management process
as key to maintaining and building Pandora’s position as the world’s
largest jewellery brand.
Pandora’s Chief Financial Officer heads up the company’s Risk
Management Board, which consists of senior management represen-
tatives from across our value chain. All areas of our business report
their most significant risks to the Global Insurance & Risk Office,
along with assessments of those risks and an overview of implemented
mitigations and next milestones. To read more about our enterprise
risk management efforts, please visit pandoragroup.com.
Our key risks
The Board of Directors reviews and discusses key risks that could
threaten our business model or the future performance, solvency or
liquidity of Pandora. Key risks and our responses are further described
on the following pages.
The key risks do not represent all the risks associated with our busi-
ness. Other risks not presently identified or ones currently deemed to
be less material may also have an adverse effect on our business.
Brand and
product relevance
As a large, global brand, the strength and
integrity of our brand is a fundamental
asset. It is important that our product
offerings remain relevant to our
customers.
A lack of brand or product relevance or a severe
break of good business practices constitute a
significant business risk that could result in lower
traffic to our stores and online shopping sites and
reduce revenue.
• Create consumer-centric innovation, fuelled by consumer insights and rigorous testing
• Build brand awareness and desirability through competitive media investments
• Strengthen capabilities within data analytics and technology
• Deliver 360-degree brand experience across all consumer touchpoints online and oine
• Continue monitoring trademarks and patents and ghting infringements
• Continue Code of Conduct training in support of good business behaviour.
Brand access
We sell our products globally and rely
on a strong channel network and solid
insights to engage with consumers in their
preferred marketplace. A personalised
and unique shopping experience is im-
portant for developing customer loyalty.
Not being able to engage consumers and provide
them with a relevant omnichannel shopping expe-
rience can result in a decline in revenue.
• Engage store associates by continuing to develop the selling ceremony and oer relevant training
programmes
• Strengthen focus on personalisation of shopping experiences across channels
• Invest in improving digital and omnichannel customer experiences
• Continuously optimise the store network by relocating, opening and closing stores.
Global business
disruptions
As a consumer brand with a fully inte-
grated value chain, we depend on a fully
operational supply chain and unhindered
access to our sales channels.
Global disruptive events such as pandemics,
lockdowns, extreme climatic events, geopolitical or
social unrest can result in both lower revenue and
higher costs through changing consumer behaviour,
temporary store and crafting facility closures, labour
shortages and supply chain disruptions.
• Expansion of online distribution capacity
• Geographical and channel diversication
• Global Crisis Management team and increased focus on business continuity
• Ongoing review of supply chain - see mitigating actions under “Supply chain disruptions” below.
AREA DESCRIPTION RISK MITIGATION
ANNUAL REPORT 2022 OUR BUSINESS
Supply chain
disruptions
Pandora operates a fully integrated
value chain and most production is
in-house. Procurement of raw materials
and the ability to produce and distribute
nished products are critical for
meeting customer demand.
Breakdowns, political unrest, re, natural catastro-
phes etc. at Pandora’s or key suppliers’ sites may
result in disruption of our supply chain and have a
signicant impact on our nancial performance.
Having crafting facilities located exclusively in
Thailand elevates the risk of supply disruption.
• Dual sourcing where feasible
• Buers of production components and nished goods
• Crafting at two separate locations in Thailand
• A new crafting facility in Vietnam
• Engagement of external manufacturers to provide exibility
• Optimised B2B and B2C distribution capacity.
IT security
breaches
Reliable IT systems and infrastructure
are critical to the company’s ability to
operate eectively. We also have a duty
to safeguard the data of our customers,
partners and employees as well as our
own data.
Breaches of IT security, for example caused by
malware attacks, could have a severe impact on
Pandora’s ability to maintain operations for a
period of time and, hence, its nancial perfor-
mance. The disclosure of condential information
could compromise the privacy of customers or
other individuals.
• Comprehensive Cyber Security Programme to upgrade existing capabilities and regularly report
progress to the Board of Directors and the Executive Leadership Team
• Ongoing security monitoring supported by incident response teams
• Third-party vulnerability and security maturity assessments
• Cyber and information security awareness training and phishing tests for all business areas
• Specialised training for high-risk teams, including the Executive Leadership Team
• Data Ethics Policy established and Privacy Board operational.
Breakdown
of IT systems
Operating a global company with a fully
integrated value chain is dependent on
stable and ecient IT systems.
Pandora operates a number of legacy IT systems,
including ERP. If Pandora were to fail or otherwise
be unable to upgrade its IT systems in a timely,
precise and ecient manner, this could have a
negative eect on Pandora's operations and
nancial results. Furthermore, a lack of interoper-
ability and an obsolescence of core IT systems
could have consequences in terms of operational
eciency and business continuity.
• Investment in technology upgrades, including an ongoing upgrade of the ERP platform
• Cross-functional alignment and project groups to ensure timely implementation
of technology upgrades
• Ongoing standardisation and consolidation of IT systems across geographies
• Increased focus on business continuity plans.
Talent attraction
and succession
Pandora needs highly talented and
capable people across all key functions
and markets to drive growth and
sustainable performance and enable us
to deliver on our strategy.
Failure to attract, develop and retain the right
talent as well as maintaining a strong succession
pipeline for leadership and critical roles could be a
risk to delivery of our strategy.
• Frequent employee advocacy surveys to measure employee engagement and leadership
eectiveness to facilitate retention
• Chief Talent Ocer Programme to get to know our talent, develop them for future roles and build
succession depth
• Launch of Global Leadership Programme (Pandora RISE)
• Enhanced focus on employer branding with the targeted Employee Value Proposition, Craft the
Incredible
• Inclusion & Diversity goals as part of our strategic priorities linked to the Long-term Incentive
programme for senior leaders.
Responsible
business
behaviour
Pandora has a reputation for responsible
business behaviour. This reputation
benets the company in several ways,
from attracting new employees to
meeting consumer expectations.
If Pandora violates legislation, disregards
principles of good corporate citizenship or fails to
adhere to social or environmental standards, it
could damage our brand reputation.
• Mandatory ethics and compliance training
• Upgraded external access to our whistleblowing hotline
• Responsible Supplier Programme, including training and vendor audits
• Environmental, social and governance reporting to ensure transparent and credible disclosure
• Commitment to ambitious climate targets and other sustainability initiatives
• A tax strategy aimed at paying fair taxes in all markets where Pandora operates.
AREA DESCRIPTION RISK MITIGATION
ANNUAL REPORT 2022 OUR BUSINESS
Macroeconomic
development
As a global jewellery brand, Pandora
operates in a discretionary consumer
spending category and is exposed to a
weak macroeconomic environment and
general changes in consumer behaviour.
Adverse macroeconomic conditions and general
changes in consumer behaviour may result in
lower demand for our products and impact our
revenue.
• Continuous monitoring of the macroeconomic landscape
• Continuous monitoring of consumer behaviour and trends
• Pursuing exibility in cost base, including frequent break options in store leases
• Continued pursuit of cost savings, including preemptive measures already
implemented in late 2022
• Geographical diversication of revenue streams
• Stressing our aordable price positioning
• Option of “buy now, pay later” payment models.
Market
uctuations
Our products are made of precious
metals, mainly silver and gold. As a global
business, Pandora has signicant revenue
in USD, USD-related currencies and GBP.
Our crafting facilities are based in
Thailand and consequently we have
signicant net cost in THB.
Pandora is exposed to a weakening of the USD,
USD-related currencies and GBP and a strengthen-
ing of the THB and precious metal prices. Currency
uctuations and increases in the price of precious
metals can have a signicant impact on the compa-
ny’s nancial performance and cash ows.
• Hedging at least 50% of the combined annual commodity, exchange rate and interest rate risk.
However, at least 70% of the annual commodity exposure must be hedged
• Ongoing review of sales prices.
Facing up to environmental risks
We understand the need to prepare for the risks that
will arise from changing weather patterns, rising sea levels
and other climate impacts. In 2022, we carried out a
climate change scenario analysis as recommended by
the Task Force on Climate-Related Financial Disclosures.
In 2023, we will consider relevant mitigation actions.
Read more in our Sustainability Report 2022.
AREA DESCRIPTION RISK MITIGATION
ANNUAL REPORT 2022
1982
THE BEGINNING
In a small jeweller’s shop in modest surroundings in central
Copenhagen, Denmark, goldsmith Per Enevoldsen and his wife
Winnie set out on the journey of what will later become one of
the world’s largest jewellery brands.
From the beginning, they are driven by a desire
to offer women a universe of high-quality, hand-finished
and contemporary jewellery at affordable prices.
STORY
2000 2006
2014
1989
2010
2005
1982
40 YEARS
OF PANDORA
JEWELLERY
In 2022, Pandora celebrated its
40th anniversary. An exceptional
journey from a small shop in
Copenhagen to the world’s
largest jewellery brand.
Pandora is founded as a
small goldsmith shop called
Populair Smykker in
Copenhagen, Denmark.
Pandora’s signature charm
bracelet concept is launched
and Pandora gets its name. Ten
of the original charms are still
part of our collection today.
The first Pandora concept store
opens its doors in Hamburg,
Germany.
Pandora starts crafting jewellery
in Thailand, where Per Enevoldsen
holds the very first ring crafted.
Pandora is listed on the
Nasdaq Copenhagen stock
exchange.
Pandora’s first fully-owned
crafting facility opens in
Bangkok.
Pandora enters a ten-year
strategic alliance with The
Walt Disney Company.
ANNUAL REPORT 2022
2017 2020
2019
2021
2022
Our state-of-the-art, resource-
efficient, LEED Gold-certified
crafting facility opens in
Lamphun in Northern Thailand.
Our crafting facilities run on
100% renewable energy and we
set the ambition to become
carbon neutral in our own
operations by 2025.
Pandora enters long-term
partnership with UNICEF.
We introduce jewellery with
lab-created diamonds to reach
new customers and deliver on our
sustainability commitments.
Pandora reaches record-high
revenue and employs more
than 32,000 people worldwide.
It all began in 1982. Per Enevoldsen and
his wife Winnie Liljeborg opened a small
goldsmith's shop on the Danish shopping
street Nørrebrogade to sell jewellery un-
der the name Populair Smykker, Danish for
"popular jewellery". The first product was
a ring crafted from solid sterling silver.
Per and Winnie soon expanded into a
wholesale business and started sourcing
its jewellery from Thailand, a country
well-known for its craftsmanship tradi-
tion. In 1989, they established their own
crafting facility in Bangkok, which allowed
them to scale up production while keep-
ing quality high and prices affordable,
paving the way for our future success.
An icon that changed
jewellery
In 2000, Populair Smykker changed its
name to Pandora and launched the
iconic charm bracelet that sparked our
international breakthrough. Pandora
Moments invited customers to collect
and combine charms on a bracelet to
create their own unique piece of jewel-
lery that would express their individual-
ity and celebrate personal milestones.
The business grew quickly and expand-
ed beyond Denmark’s borders into
important new markets, including the US
and Canada in 2003 and Australia and
Germany in 2004.
In 2022 alone, around 65 million charms
were crafted, that is six million more
charms than in 2021.
A truly global jewellery
brand
Having become the world’s largest jewel-
lery brand, Pandora today offers a wide
selection of jewellery collections crafted
with a commitment to having the lowest
possible impact on the environment,
people and communities. We sell prod-
ucts in more than 100 countries through
6,500 physical and online stores, as well
as social media and other platforms.
STORY CONTINUES
ANNUAL REPORT 2022 STORY
ANNUAL REPORT 2022
ANNUAL REPORT 2022 CORPORATE GOVERNANCE
ANNUAL REPORT 2022 CORPORATE GOVERNANCE
and assess measures to manage, reduce or eliminate iden-
tified risks. The IACC function assists Pandora’s Executive
Management and the Audit Committee in identifying and
monitoring financial risks in the financial reporting process.
The Audit Committee reviews selected high-risk areas on a
frequent basis, including significant accounting estimates
and material changes to accounting policies.
Control activities
The financial information reported by Pandora A/S and its
subsidiaries follows a formalised and structured process and
is controlled by local controllers with local market knowledge
as well as the controlling function within Pandora Global
Business Services and Corporate Finance. The Group con-
trolling function is continuously trained in new accounting
and reporting requirements and monitors compliance with
relevant legislation on an ongoing basis.
The financial reporting process is dependent on the
Group’s IT systems. Any weaknesses in system controls
and related risks to the financial reporting are mitigated
by manual controls.
Each entity and Global Business Services assesses its control
environment through a self-assessment of the effectiveness
of the implemented controls. The IACC function evaluates
the effectiveness of the Group's control environment on an
ongoing basis and reports its findings to the Audit Committee.
Monitoring
Pandora’s internal control procedures and risk management
systems, including the whistleblowing function, are continu-
ously monitored, tested and documented.
The Audit
Committee
assists the
Board in
supervising
the financial
reporting
process.
Internal control and risk management
systems in relation to the financial
reporting process
The Board and Executive Management are responsible for
Pandora’s internal control and risk management systems in
relation to the financial reporting process.
Control environment
The Group’s internal control framework identifies key
processes, inherent risks and control procedures to reduce
and mitigate financial risks and ensure reliable financial
reporting.
The Audit Committee assists the Board in supervising the
financial reporting process and monitoring the effectiveness
of the internal control and risk management systems.
Executive Management is responsible for maintaining and
strengthening the overall control environment, identifying
weaknesses and ensuring necessary steps are taken to
mitigate financial risks through standardisation and process
optimisation.
A central Internal Audit and Compliance Controlling (IACC)
function has been established to help Pandora accomplish
its objectives by bringing a systematic and disciplined
approach to evaluating and improving the effectiveness
of internal control, compliance and governance processes.
The head of the IACC function reports directly to Pandora’s
Corporate Finance function with a dotted reporting line to
the Audit Committee Chair.
Risk assessment
The Board and Executive Management assess risks on an on-
going basis, including risks related to the financial reporting,
The Audit Committee monitors internal control and the
risk management process to ensure that identified risks
are mitigated.
In addition to monitoring of procedures and systems,
financial risks are reviewed through audits performed by
the IACC function.
Information and communication
Group entities are assigned dedicated controllers within
Corporate Finance to ensure a direct line of communication.
The Corporate Finance function reports to the Chief Financial
Officer.
In addition, the IACC function is present at all Audit Commit
-
tee meetings and provides regular status updates on the
control environment. Furthermore, the head of IACC has
regular meetings with the Chief FInancial Officer and meet-
ings with the Audit Committee without the presence of the
Leadership Team. This set-up ensures transparency and that
communication is shared with the Audit Committee on a
timely basis.
The Board has adopted an Investor Relations Policy that
requires all communication to stakeholders, including financial
reporting, to be conducted adequately, timely and openly –
both internally and externally – and to be conducted factually
and truthfully and in compliance with laws and applicable
regulations.
ANNUAL REPORT 2022 CORPORATE GOVERNANCE
Year of birth: 1964 Member since: 2019
Professional position:
Non-executive Board member.
Non-executive functions:
Chair of Royal Unibrew A/S and member of the
Boards of Axfood AB, Aspelin Ramm Gruppen AS
and AKA AS.
Skills and experience:
Vast operational experience with strategy execu-
tion and transformation as well as retail and brand
optimisation at executive level. Furthermore, Peter
A. Ruzicka contributes with experience from other
Board positions and insight into capital markets.
Year of birth: 1951 Member since: 2010
Professional position:
Executive Chair of Axcel Management A/S.
Non-executive functions:
Chair of Aktive Ejere (Active Owners Denmark), EKF
Danmarks Eksportkredit (Denmark’s Export Credit
Agency), Eksport Kredit Finansiering A/S and Danmarks
Skibskredit Holding A/S and member of the Board of its
subsidiary; Vice Chair of PostNord and Axcel Advisory
Board; member of the Boards of Frigast A/S, Nissens
A/S, Danmarks Eksport- og Investeringsfond and CBS
Executive Fonden; adjunct professor at Copenhagen
Business School.
Skills and experience:
Experience within areas such as general management,
capital markets, consumer sales and retail execution.
Year of birth: 1968 Member since: 2020
Professional position:
Executive chairman in Baker & Baker UK Ltd.
Non-executive functions:
Member of the Boards of Faerch Group, Salling Group
A/S, BioMar and AKK AB.
Skills and experience:
In-depth international insight into the consumer market,
experience advancing the social sustainability agenda and
experience of the complete value chain within large corpo
-
rate multinationals.
Year of birth: 1977 Member since: 2020
Professional position:
Deputy Chief Executive Officer of Lacoste.
Non-executive functions:
None.
Skills and experience:
Experience within international brand strategy,
digital transformation and vast experience in beauty
and cosmetics, high-growth pureplay digital environ
-
ments and lifestyle apparel retail.
Year of birth: 1964 Member since: 2021
Professional position:
Non-executive Board member.
Non-executive functions:
Member of the Board of Ahold Delhaize N.V. and
Senior Advisor to a number of private equity firms.
Skills and experience:
International consumer market insight, extensive expe-
rience advancing environmental and social sustainabili-
ty, and exposure to the full value chain.
Year of birth: 1971 Member since: 2021
Professional position:
Chief Financial Officer of IVC Evidensia Ltd.
Non-executive functions:
Member of the Board of Novozymes A/S.
Skills and experience:
Experience within areas such as international financial
and executive management from large corporate
multinationals.
Heine
Dalsgaard
Jan
Zijderveld
Christian Frigast
Deputy Chair
Catherine
Spindler
Marianne
Kirkegaard
BOARD OF
DIRECTORS
Year of birth: 1957 Member since: 2016
Professional position:
Non-executive Board member.
Non-executive functions:
Chair of Industrifonden and Min Doktor AB and member
of the Boards of Asker AB, Elekta AB and Bure Equity AB.
Skills and experience:
Experience within areas such as consumer goods,
retail execution, IT, digital, financial insights and capital
markets.
Birgitta
Stymne Göransson
Peter A. Ruzicka
Chair
The Board members’ full CVs are available
at pandoragroup.com.
ANNUAL REPORT 2022 CORPORATE GOVERNANCE CORPORATE GOVERNANCE
President & Chief Executive Officer (CEO)
Year of birth: 1965 Member since: 2019
Registered Executive Management.
Alexander Lacik has more than 30 years’ experience from large
global consumer goods companies. Before joining Pandora, he
was Chief Executive Officer of Britax Ltd., a British manufactur-
er of childcare products. He has also held Chief Executive Offi-
cer and senior management positions at Kasthall Golv & Mattor,
Procter & Gamble and Reckitt Benckiser, where he held a
number of positions, including head of Reckitt Benckiser North
America. He has a Bachelor’s degree in Business Administration
from the University of Växjö, Sweden.
Executive Vice President & Chief Financial Officer (CFO)
Year of birth: 1970 Member since: 2018
Registered Executive Management.
Anders Boyer has more than 20 years’ experience in finance,
business management and turnarounds. Prior to joining Pandora,
Anders held positions as Chief Financial Officer at Hempel and
GN Store Nord, and Finance Director and subsequently Regional
Director of ISS. Anders started his career at A.P. Moller-Maersk,
where he worked for ten years. He has an MSc in Finance and
Accounting from Copenhagen Business School, Denmark.
Chief Commercial Officer
Member since: 2020
Chief Supply Officer
Member since: 2020
Chief Digital & Technology Officer
Member since: 2019
Chief Human Resources Officer
Member since: 2023
Chief Product Officer
Member since: 2011
Stephen
Fairchild
Byron
Clayton
Anders
Boyer
David
Walmsley
Martino
Pessina
Jeerasage
Puranasamriddhi
EXECUTIVE
LEADERSHIP TEAM
Chief Marketing Officer
Member since: 2022
Mary Carmen
Gasco-Buisson
Alexander
Lacik
The Executive Leadership Team
members’ full CVs are available at
pandoragroup.com.
ANNUAL REPORT 2022 CORPORATE GOVERNANCE CORPORATE GOVERNANCE
Jan Feb Mar May Jun Jul Aug Sep Oct Nov DecApr
600
200
800
1,000
400
SHAREHOLDER
INFORMATION
Pandora’s capital structure policy is to maintain NIBD to
EBITDA between 0.5x and 1.5x. At the end of 2022, Pandora’s
leverage ratio was only 0.8x NIBD to EBITDA and thus at the
low end of the capital structure policy range. The increased
leverage of 0.4x versus 2021 primarily reflected significant
cash distributions to the shareholders and increased inven-
tories and higher CAPEX through the year.
Proposed distributions
Pandora continues to be highly cash-generative and has ample
liquidity to continue cash distribution to shareholders. For
2023, the Board proposes a dividend of DKK 16 per share and
a new share buyback of DKK 2.4 billion until 30 June 2023 with
an intention to go up to DKK 5.0 billion over the course of the
next 12 months, assuming no material deterioration in the
macroeconomic climate. The total cash distribution of DKK
6.4 billion will be the highest in Pandora’s history. The Board
already has the authority to initiate a share buyback at any
point in time.
Review of 2022 share buyback
and dividends
In 2022, Pandora paid out an ordinary dividend of DKK 16
per share. The total amount paid was around DKK 1.5 billion.
In 2022, reflecting macroeconomic concerns, the Pandora
share price decreased by 40% and ended the year with a clos-
ing price of DKK 488. The active capital allocation policy meant
that Pandora returned DKK 5.1 billion through cash distribu-
tions to shareholders in the calendar year, totalling 11% of the
total market capitalisation as of 31 December 2022.
The liquidity in the Pandora share remains strong with a free
float of 100% of total shares outstanding and around 86
million shares traded in 2022, corresponding to 89% of
shares outstanding.
In addition to being listed in Copenhagen, Pandora has
a sponsored level 1 American Depository Receipt (ADR)
programme. The ADRs are traded in the US over-the-counter
under the symbol PANDY. Further information regarding
the ADR programme can be found on our website:
pandoragroup.com.
Capital structure and cash allocation
Pandora’s capital structure serves to ensure that the com-
pany has sufficient financial flexibility to pursue its strategic
goals and preserve a stable financial structure based on a
strong balance sheet.
ANNUAL DISTRIBUTIONS
DKK billion
FY 2023
Proposed
FY 2022
Actual
FY 2021
Actual
FY 2020
Actual
FY 2019
Actual
Dividend (ordinary + interim) 1.4 1.5 1.5 0.8 1.8
Nominal dividend per share, DKK 16.0 16.0 15.0 9.0 18.0
Share buyback programme 5.0
1
3.6 3.3 - 2.2
Total cash return 6.4 5.1 4.8 0.8 4.0
1
Includes DKK 0.4 billion from already announced share buyback running until February 2023 and DKK 4.6 billion of new share buyback (with an intention to go up to DKK 5.0 billion)
expected to be paid out in 2023 calendar year, assuming no material deterioration in the macroeconomic climate.
Pandora shares have been listed on the Nasdaq
Copenhagen stock exchange since 2010. Pandora is
included in the blue chip OMX C25 index and has around
36,000 registered shareholders.
SHARE PRICE DEVELOPMENT
DKK
ANNUAL REPORT 2022 CORPORATE GOVERNANCE
Financial
calendar 2023
08 Feb Annual Report 2022
08 Feb Sustainability Report 2022
16 Mar Annual General Meeting
03 May Interim Report Q1 2023
15 Aug Interim Report Q2 2023
05 Oct Capital Markets Day
08 Nov Interim Report Q3 2023
Share information
Exchange Nasdaq
Copenhagen
Trading symbol PANDORA
Identification
number/ISIN
DK0060252690
Number of
shares
95,500,000 of DKK 1,
each with one vote
Share classes 1
GICS 25203010
Sector Apparel,
Accessories & Luxury
Goods
Segment Large
ADR information
ADR trading
symbol
PANDY
Programme
type
Sponsored level 1
programme
(J.P. Morgan)
Ratio (ADR:ORD) 4 ADRs : 1 ordinary
share (4:1)
ADR ISIN US 698 341 2031
In addition, Pandora repurchased shares at a total price of
DKK 3.6 billion in 2022, including DKK 0.7 billion from the pre-
vious buyback programme finalised on 4 February 2022.
Shareholders
As of 31 December 2022, Pandora had two major sharehold-
ers. Parvus Asset Management
1
has disclosed holding rights
to shares corresponding to 5.4% of the total outstanding
voting rights, and Blackrock
2
has disclosed holding rights to
shares corresponding to 8.6%.
As of 31 December 2022, the geographical split of
institutional investors was (% of share capital):
• UK 34%
• US 23%
• Denmark 13%
As of 31 December 2022, Pandora’s Board of Directors and
Executive Management held a total of 95,616 and 280,098
Pandora shares respectively, corresponding to 0.39% of the
total share capital.
Investor Relations
The Executive Management is responsible for the existence of
an Investor Relations function, which is responsible for ensur-
ing compliance with Pandora’s Investor Relations Policy. Inves-
tor Relations reports directly to the Chief Financial Officer.
The purpose of Pandora’s investor relations activities is to
ensure that relevant, accurate and timely information is made
available to the capital markets to serve as a basis for regular
trading and a fair pricing of the share. Prior to the announce-
ment of interim and annual reports, a four-week silent period
is in place. In addition, members of the Board of Directors and
Executive Management are only allowed to trade shares in a
four-week trading window following the announcement of in-
terim and annual reports. Pandora will ensure that the compa-
ny is perceived as visible, accessible, reliable and professional
by the capital markets and that Pandora is regarded among
the best relative to peers. This will be achieved by complying
with the rules and legislation for listed companies on Nasdaq
OMX as well as Pandora’s internal policies.
Company website
Our website (pandoragroup.com ) provides comprehen-
sive information about the company, its activities, share
performance and shareholders. Additionally, all company
announcements, including interim and annual reports, as
well as investor presentations, webcasts and conference call
transcripts are made available on the website in due time.
Furthermore, the website contains a constantly updated
financial and event calendar showing events and activities
related to investors. A comprehensive list of the 23 analysts
covering the Pandora share is maintained, including names,
institutions and contact details.
1
Parvus Asset Management Europe Limited, London, UK.
2
BlackRock, Inc., Wilmington, Delaware, US.
ANNUAL REPORT 2022 CORPORATE GOVERNANCE
46 Group performance
48 Group protability
49 Balance sheet and cash ows
FINANCIAL
REVIEW
net concept stores
opened in 2022. The store
openings were mainly in
the US and China and
are part of our ambition
to increase our overall
footprint in these
markets, closely linked to
our Phoenix strategy.
88
ANNUAL REPORT 2022
GROUP PERFORMANCE
2022 was yet another record-breaking year for Pandora as
revenue reached an all-time high. Pandora slightly exceeded
the financial guidance on organic growth and reached the
high end of the financial guidance on EBIT margin. This was
despite an increasingly challenging macroeconomic backdrop
throughout the year, COVID-19 restrictions in China
and the impact from a high comparative base in the US
owing to government stimulus cheques in 2021.
In the second year of the Phoenix growth strategy, organic
growth was 7% compared to 2021 and 17% compared to 2019.
Growth was driven by continued strong brand momentum
across major markets. Brand-specific investments in digital,
commercial and personalised marketing over the past three
years have been paying off whilst the launch of new platforms,
such as Diamonds by Pandora, has been well received.
Good momentum across most
key markets
Pandora delivered strong performance in most of its key
markets. The UK, our second-largest market, delivered strong
sell-out growth of 10% compared to 2021, driven by strong
demand for the Pandora Moments platform. Italy and Germany
saw solid sell-out growth and ended the year at 5% and
18%, respectively. In the second half of the year, Italy started
to see negative impact from the challenging macroeconomic
declined for Pandora and sell-out growth ended at -7%
compared to 2021, following the effect of government
stimulus cheques in 2021.
Moments incl. Collabs compounds
solid growth
The Moments incl. Collabs segment continued its solid per-
formance in 2022. Despite a challenging macro environment,
Pandora Moments incl. Collabs delivered positive sell-out
growth of 5% in 2022, underpinning its position as a leading
product category in the jewellery market, even in uncertain
times. Growing Pandora Moments is the number one priority
in the Phoenix strategy.
REVENUE BY KEY MARKET, YTD
DKK million 2022 2021
Sell out growth
(like-for-like)
Organic
growth
Share of revenue
FY 2022
Share of revenue
FY 2021
US 7,907 7,026 -7% -3% 30% 30%
China 737 1,126 -47% -39% 3% 5%
UK 3,802 3,314 10% 15% 14% 14%
Italy 2,580 2,443 5% 6% 10% 10%
Australia 1,271 1,131 6% 9% 5% 5%
France 1,190 1,122 4% 6% 4% 5%
Germany 1,307 1,191 18% 10% 5% 5%
Total top-7 markets 18,795 17,353 -2% 1% 71% 74%
Rest of Pandora 7,669 6,041 21% 23% 29% 26%
Total revenue 26,463 23,394 4% 7% 100% 100%
backdrop. France saw positive sell-out growth of 4%,
however Pandora is not satisfied with the performance. In
2022, Pandora focused on detoxing the promotional level
in France, with the aim of building a stronger base business to
capitalise on future ambitions.
Throughout 2022, China remained a drag on performance.
The COVID-19 restrictions in the market further delayed the
relaunch of the Pandora brand. China remains of high strate-
gic importance for Pandora.
Organic growth compared to 2019 remained very strong in
the US and ended at 53%. As expected, the US market
ANNUAL REPORT 2022 FINANCIAL REVIEW
Diamonds by Pandora shows potential
Pandora's second product segment, Style, delivered sell-out
growth of -1% in 2022, mainly dragged down by Signature.
The largest product platform within Style is Timeless, which
offers classical jewellery to our consumers. Timeless is also
Pandora's second-largest product platform and represents
significant opportunity for growth. Style also includes
Pandora ME, which is designed to target Generation Z and
grew 40% compared to 2021. Another product platform
within Style is Diamonds by Pandora, a collection of lab-
created diamond jewellery made out of 100% recycled
silver and gold. Pandora took the platform to North America
in August 2022, across 269 Pandora stores in the US and
Canada as well as online. The US is the world’s largest mar-
ket for lab-created diamond jewellery, estimated at around
USD 1.2 billion. The market is expected to continue to grow,
and lab-created diamonds are outpacing the diamond
industry's overall growth. In 2022, total revenue was DKK
213 million. The collection is available in the UK, the US
and Canada.
Store network development
In 2022, Pandora opened net 88 concept stores. The store
openings were mainly located in the US and China and are
part of Pandora’s ambition to increase its overall footprint
in these markets. The expansion comes with a significant
opportunity for further value creation, and we expect to
open an additional net 50 to 100 concept stores in 2023.
Furthermore, through 2022, Pandora converted 25 concept
stores and nine shop-in-shops in Portugal from third-party
distribution stores to Pandora-owned stores. Pandora also
took over 13 concept stores in Las Vegas from Panbor, and 37
concept stores from Ben Bridge Jeweler, primarily on the US
West Coast.
REVENUE BY CHANNEL
DKK million 2022 2021
Organic
growth
Growth in
local currency
Share of revenue
FY 2022
Share of revenue
FY 2021
Pandora owned
1
retail 19,115 15,922 11% 16% 72% 68%
- of which concept stores 12,150 9,133 21% 29% 46% 39%
- of which online stores 5,612 5,977 -10% -10% 21% 26%
- of which other points of sale 1,353 812 55% 57% 5% 3%
Wholesale 6,628 6,705 -2% -7% 25% 29%
- of which concept stores 3,508 3,737 -3% -13% 13% 16%
- of which other points of sale 3,120 2,968 -1% 0% 12% 13%
Third-party distribution 721 767 0% -7% 3% 3%
Total revenue 26,463 23,394 7% 8% 100% 100%
REVENUE BY SEGMENTS
DKK million 2022 2021
Sell-out growth
(like-for-like)
Growth in
local currency
Share of revenue
FY 2022
Share of revenue
FY 2021
Moments incl. Collabs 19,192 16,610 5% 11% 73% 71%
- Moments 16,578 14,699 3% 9% 63% 63%
- Collabs 2,614 1,911 20% 30% 10% 8%
Style 7,272 6,784 -1% 3% 27% 29%
- Timeless 4,362 4,091 -2% 2% 16% 17%
- Signature 1,883 1,990 -12% -9% 7% 9%
- ME 815 656 40% 21% 3% 3%
- Diamonds by Pandora 213 48 130% 298% 1% 0%
Total revenue 26,463 23,394 4% 8% 100% 100%
STORE NETWORK
Number of points of sale
1
2022 2021 Growth
Concept stores 2,542 2,454 88
- of which Pandora owned
2
1,653 1,423 230
- of which franchise owned 588 700 -112
- of which third-party distribution 301 331 -30
Other points of sale 3,985 4,080 -95
1
Pandora does not own any of the premises (Land and buildings) where stores are operated. Pandora exclusively operates stores from leased premises.
1
As of Q1 2022, Pandora excludes concept stores and
other points of sales from third-party distribution related
to Russia and Belarus. Comparative figures for 2021 were
restated accordingly.
2
Pandora does not own any of the premises (Land and
buildings) where stores are operated. Pandora exclusively
operates stores from leased premises.
ANNUAL REPORT 2022 FINANCIAL REVIEW
GROUP PROFITABILITY
Pandora delivered strong profitability again in 2022 with
EBIT increasing by 15%, a testimony to the operating
leverage in Pandora’s business model.
Moments incl. Collabs generated a gross margin of 75.6% while
Style generated a gross margin of 78.2% compared to 75.3%
and 78.1% in 2021, respectively. Overall, gross margin was
slightly up compared to 2021. The increase was mainly due
to favourable channel mix and overall efficiencies in produc-
tion. The increase was delivered despite the negative impacts
from higher commodity prices, which impacted gross margin
negatively by 0.9 percentage points. Furthermore, temporary
headwind of 0.5 percentage points from inventory buybacks
in connection with franchise acquisitions and non-recurring
COVID-19 cost in Thailand also depressed gross margin in
2022. Lastly, the impact on Pandora’s gross margin from
foreign exchange rates was neutral compared to 2021.
The OPEX ratio decreased by 0.3 percentage points compared
to 2021, despite higher sales and distribution expenses from
the expansion of owned and operated stores. Marketing
expenses ended at 14.1% of revenue in 2022, compared to
15.3% in 2021, and administrative expenses ended at 8.0% of
revenue compared to 8.7% in 2021. The EBIT margin ended at
25.5%, up 0.5 percentage points compared to 2021, despite
headwinds from rising inflation, higher interest rates and
geopolitical uncertainty. Pandora also wrote down DKK 50
COST OF SALES AND GROSS PROFIT
DKK million 2022 2021
Growth in
constant FX
Share of
revenue 2022
Share of
revenue 2021
Revenue 26,463 23,394 8% 100.0% 100.0%
Cost of sales -6,273 -5,590 7% -23.7% -23.9%
Gross profit 20,190 17,803 9% 76.3% 76.1%
OPERATING EXPENSES
DKK million 2022 2021
Growth in
constant FX
Share of
revenue 2022
Share of
revenue 2021
Sales and distribution expenses -7,602 -6,352 16% 28.7% 27.2%
Marketing expenses -3,720 -3,587 0% 14.1% 15.3%
Administrative expenses -2,125 -2,026 3% 8.0% 8.7%
Total operating expenses -13,448 -11,965 9% 50.8% 51.1%
EBIT
DKK million 2022 2021
EBIT
margin
EBIT
margin
Operating profit (EBIT) 6,743 5,839 25.5% 25.0%
EBIT margin
Gross margin
25.5%
76.3%
Highly
profitable
business
million of trade receivables related to Pandora’s exit from
the Russian market.
Net financial items ended at a cost of DKK 210 million com-
pared to DKK 461 million in 2021. The development was due
to favourable exchange rate movements. Total tax expenses
amounted to DKK 1.5 billion (2021: DKK 1.2 billion), corre-
sponding to an effective tax rate of 23.0% in 2022 compared
to 22.6% in 2021. The increase was a reflection of an overall
stronger performance combined with non-capitalised tax as-
sets. Lastly, net profit improved to DKK 5.0 billion compared
to DKK 4.2 billion in 2021.
Pandora lifted earnings per share (EPS) by 29% compared to
2021, with EPS ending at DKK 54.2 in 2022.
ANNUAL REPORT 2022 FINANCIAL REVIEW
BALANCE SHEET AND CASH FLOWS
Solid capital position
Net working capital ended at 4.2% of revenue in 2022. The
increase in net working capital of DKK 2.3 billion was mainly
driven by deliberate inventory build-up to protect availability,
in order to mitigate risk of stock-outs and disruptions in the
supply chain. In addition, the increase on inventory was also
driven by more openings of owned and operated stores and
revenue growth.
Free cash flows ended the year at DKK 2.6 billion, down from
DKK 5.1 billion, and is a reflection of the before mentioned
increases in inventory as well as higher CAPEX. Pandora
increased CAPEX from a 3% share of revenue in 2021 to a 5%
share of revenue in 2022, equal to a DKK 649 million increase
in absolute CAPEX. The increase in CAPEX was mainly due
to network expansion as Pandora opened net 88 concept
stores and 130 owned and operated shop-in-shops in 2022.
Additionally, taxes paid ended at DKK 1.8 billion in 2022
compared to DKK 0.8 billion in 2021, also impacting both
free cash flows and cash flows from operating activities neg-
atively. The increase in taxes paid related to tax from prior
year and higher tax paid for 2022. Cash flows from investing
activities increased to DKK 1.8 billion compared to DKK 0.6
billion in 2021, due to increasing acquisition activity and
higher CAPEX from network expansions and investments
in digital capabilities.
ROIC remained strong, landing at 48% in 2022 compared to
59% in 2021. The decrease was mainly a function of higher
invested capital due to the before mentioned inventory build-
up and increased right-of-use assets as a consequence of net
opened Pandora owned and operated concept stores at the
end of 2022. On a run-rate basis, new Pandora concept stores
are ROIC-accretive. The investments made support Pandora's
execution on the Phoenix growth strategy and Pandora sees
potential for expanding the ROIC going forward.
Balance sheet
Total non-current assets increased to DKK 14.3 billion at
the end of 2022 (2021: DKK 12.6 billion), mainly due to an
increase in goodwill from acquisitions, an overall higher
CAPEX spend across all asset types, higher right-of-use
assets coming from network expansion, and higher deferred
tax assets. The increase in current assets was mainly related
NET WORKING CAPITAL
Share of preceding 12 months' revenue 2022 2021 2020 2019 2018
Inventories 15.9% 12.8% 10.3% 9.8% 13.8%
Trade receivables 4.8% 4.3% 4.6% 7.5% 7.2%
Trade payables -11.8% -14.0% -16.9% -14.2% -9.9%
Other net working capital elements -4.7% -8.2% -5.6% -4.5% -4.5%
Total 4.2% -5.0% -7.6% -1.3% 6.7%
EPS growth
ROIC
29%
48%
to inventory build-up, which had reached a sustainable level
at the end of 2022.
Net interest-bearing debt amounted to DKK 6.8 billion at
the end of 2022 (2021: DKK 2.9 billion), corresponding to a
financial leverage of 0.8x (2021: 0.4x). The increase in net inter-
est-bearing debt was mainly driven by significant cash returns
to shareholders in 2022 through a combination of dividends
and share buybacks, equivalent to 11% of market cap at the
end of 2022, and increasing inventory levels.
At the end of 2022, equity in Pandora amounted to DKK 7.2
billion, roughly in line with DKK 7.0 billion in 2021. The increase
was driven by profit for the year offset by payout of DKK 5.1
billion to the company’s shareholders. In 2022, we paid out
DKK 1.5 billion in ordinary dividend and bought back own
shares for a total of DKK 3.6 billion.
ANNUAL REPORT 2022 FINANCIAL REVIEW
51 Consolidated financial statements
91 Management statement
92 Independent auditor's report
96 Parent Company financial statements
“
I love working with
Pandora’s exciting
digital transformation.
Considering the
ambitious journey
we are on, there are
immense opportunities
for everyone to grow
and I really enjoy being
part of the company’s
success.
PRASHANT
Delivery Manager,
Denmark
FINANCIAL
STATEMENTS
ANNUAL REPORT 2022 FINANCIAL STATEMENTS
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER
CONSOLIDATED INCOME STATEMENT
DKK million Notes 2022 2021
Revenue 2.1 26,463 23,394
Cost of sales 2.3, 3.1, 3.2 -6,273 -5,590
Gross profit 20,190 17,803
Sales, distribution and marketing expenses 2.3, 3.1, 3.2 -11,322 -9,939
Administrative expenses 2.3, 3.1, 3.2 -2,125 -2,026
Operating profit 2.1 6,743 5,839
Finance income 4.6 412 152
Finance costs 4.6 -622 -613
Profit before tax 6,533 5,378
Income tax expense 2.5 -1,504 -1,218
Net profit for the year 5,029 4,160
Earnings per share, basic (DKK) 4.2 54.2 42.1
Earnings per share, diluted (DKK) 4.2 53.7 41.7
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
DKK million Notes 2022 2021
Net profit for the year 5,029 4,160
Other comprehensive income:
Items that may be reclassified to profit/loss for the year
Exchange rate adjustments of investments in subsidiaries -196 370
Commodity hedging instruments:
- Realised in net cost of sales -1 -4
- Realised in net financials 46 -16
- Realised in inventories 241 -141
- Fair value adjustments -39 -219
Foreign exchange hedging instruments:
- Realised in net financials 110 249
- Fair value adjustments -61 -287
Tax on other comprehensive income, income/expense 2.5 23 83
Items that may be reclassified to profit/loss for the year, net of tax 123 36
Items not to be reclassified to profit/loss for the year
Actuarial gain/loss on defined benefit plans, net of tax 2.3 12 10
Items not to be reclassified to profit/loss for the year, net of tax 12 10
Other comprehensive income, net of tax 135 46
Total comprehensive income for the year 5,164 4,206
ANNUAL REPORT 2022 FINANCIAL STATEMENTS
ASSETS
DKK million Notes 2022 2021
Goodwill 4,822 4,418
Brand 1,057 1,057
Distribution 1,047 1,080
Other intangible assets 642 538
Total intangible assets 3.1 7,568 7,094
Property, plant and equipment 3.2 2,226 1,816
Right-of-use assets 3.3 2,978 2,532
Deferred tax assets 2.5 1,261 891
Other financial assets 249 222
Total non-current assets 14,282 12,555
Inventories 3.5 4,211 2,991
Trade receivables 3.6 1,262 1,009
Right-of-return assets 3.8 54 70
Derivative financial instruments 4.4, 4.5 231 69
Income tax receivable 2.5 155 68
Other receivables 1,024 738
Cash 794 1,043
Total current assets 7,731 5,988
Total assets 22,013 18,542
EQUITY AND LIABILITIES
DKK million Notes 20212022
Share capital 4.1 96 100
Treasury shares 4.1 -3,320 -3,416
Reserves 918 795
Proposed dividend 1,430 1,516
Retained earnings 8,044 8,007
Total equity 7,167 7,001
Provisions 3.7 363 416
Loans and borrowings 4.3, 4.4 3,130 2,765
Deferred tax liabilities 2.5 172 113
Total non-current liabilities 3,665 3,295
Provisions 3.7 21 26
Refund liabilities 3.8 628 724
Contract liabilities 3.8 136 163
Loans and borrowings 4.3, 4.4 4,458 1,161
Derivative financial instruments 4.4, 4.5 74 209
Trade payables 3.9, 4.4 3,131 3,267
Income tax payable 2.5 1,068 1,003
Other payables 4.4 1,666 1,694
Total current liabilities 11,181 8,246
Total liabilities 14,846 11,541
Total equity and liabilities 22,013 18,542
CONSOLIDATED BALANCE SHEET
AT 31 DECEMBER
ANNUAL REPORT 2022 FINANCIAL STATEMENTS
DKK million
Notes
Share
capital
Treasury
shares
Translation
reserve
Hedging
reserve
Dividend
proposed
Retained
earnings
Total
equity
2022
Equity at 1 January 100 -3,416 905 -110 1,516 8,007 7,001
Net profit for the year - - - - - 5,029 5,029
Other comprehensive income, net of tax - - -108 231 - 12 135
Total comprehensive income for the year - - -108 231 - 5,041 5,164
Share-based payments 2.3, 2.4 - 199 - - - -95 104
Purchase of treasury shares 4.1 - -3,588 - - - - -3,588
Cancellation of treasury shares 4.1 -5 3,486 - - - -3,481 -
Dividend paid 4.2 - - - - -1,516 2 -1,514
Dividend proposed 4.2 - - - - 1,430 -1,430 -
Equity at 31 December 96 -3,320 797 121 1,430 8,044 7,167
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER
2021
Equity at 1 January 100 -93 535 215 - 6,632 7,389
Net profit for the year - - - - - 4,160 4,160
Other comprehensive income, net of tax - - 370 -325 - 1 46
Total comprehensive income for the year - - 370 -325 - 4,161 4,206
Share-based payments 2.3, 2.4 - 1 - - - 209 210
Purchase of treasury shares 4.1 - -3,325 - - - - -3,325
Dividend paid 4.2 - - - - -1,481 2 -1,479
Dividend proposed 4.2 - - - - 2,997 -2,997 -
Equity at 31 December 100 -3,416 905 -110 1,516 8,007 7,001
ANNUAL REPORT 2022 FINANCIAL STATEMENTS
DKK million Notes 2022 2021
Operating profit 6,743 5,839
Depreciation and amortisation 1,973 1,999
Share-based payments 2.4 87 166
Change in inventories -1,012 -799
Change in receivables -531 -77
Change in payables and other liabilities -559 327
Other non-cash adjustments 4.7 -18 70
Finance income received 7 3
Finance costs paid -466 -468
Income tax paid 2.5 -1,790 -832
Cash flows from operating activities, net 4,434 6,228
Acquisition of subsidiaries and activities, net of cash acquired 3.4 -562 -66
Purchase of intangible assets -353 -289
Purchase of property, plant and equipment -838 -296
Change in other assets -36 17
Proceeds from sale of property, plant and equipment 5 2
Cash flows from investing activities, net -1,785 -631
Dividend paid 4.2 -1,514 -1,479
Purchase of treasury shares 4.1 -3,527 -3,325
Proceeds from loans and borrowings 4.3 4,994 1,315
Repayment of loans and borrowings 4.3 -1,985 -3,004
Repayment of lease commitments 4.3 -1,068 -991
Cash flows from financing activities, net -3,100 -7,484
Net increase/decrease in cash -452 -1,887
DKK million Notes 2022 2021
Cash and cash equivalents at 1 January 1,043 2,912
Exchange gains/losses on cash 4 18
Net increase/decrease in cash -452 -1,887
Cash and cash equivalents at 31 December 595 1,043
Cash balances 794 1,043
Overdraft -199 -
Cash and cash equivalents at 31 December 595 1,043
Cash flows from operating activities, net 4,434 6,228
- Finance income received -7 -3
- Finance cost. paid 466 468
Cash flows from investing activities, net -1,785 -631
- Acquisition of subsidiaries and activities, net of cash acquired 562 66
Free cash flows excl. lease payments 3,670 6,128
Free cash flows incl. lease payments 2,602 5,137
Unutilised committed credit facilities 4.4 6,693 6,023
The above cannot be derived directly from the income statement and the balance sheet.
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER
ANNUAL REPORT 2022 FINANCIAL STATEMENTS
Notes
The notes are grouped into five sections related to key
figures. The notes contain the relevant financial information
as well as a description of accounting policies applied for the
topics of the individual notes.
SECTION 1
BASIS OF PREPARATION 56
1.1 Principal accounting policies 57
1.2 New accounting policies and disclosures 58
1.3 Management’s judgements and
estimates under IFRS 58
SECTION 2
RESULTS FOR THE YEAR 59
2.1 Segment and revenue information 60
2.2 Government grants 62
2.3 Sta costs 62
2.4 Share-based payments 63
2.5 Taxation 64
SECTION 3
INVESTED CAPITAL AND
WORKING CAPITAL ITEMS 68
3.1 Intangible assets 69
3.2 Property, plant and equipment 72
3.3 Leases 73
3.4 Business combinations 74
3.5 Inventories 76
3.6 Trade receivables 76
3.7 Provisions 77
3.8 Contract assets and liabilities 77
3.9 Trade payables 78
CONTENTS
SECTION 4
CAPITAL STRUCTURE AND
NET FINANCIALS 79
4.1 Share capital 80
4.2 Earnings per share and dividend 80
4.3 Net interest-bearing debt 81
4.4 Financial risks 82
4.5 Derivative nancial instruments 84
4.6 Net nancials 86
4.7 Other non-cash adjustments 86
SECTION 5
OTHER DISCLOSURES 87
5.1 Contingent assets and liabilities 88
5.2 Related parties 88
5.3 Fees to independent auditor 88
5.4 Events occurring after the reporting period 88
5.5 Companies in the Pandora Group 89
5.6 Financial denitions 90
ANNUAL REPORT 2022 FINANCIAL STATEMENTS ANNUAL REPORT
This section introduces Pandora’s accounting policies
and significant accounting estimates.
A more detailed description of accounting policies
and significant estimates related to specific reported
amounts is presented in the respective notes. The
purpose is to provide transparency on the disclosed
amounts and to describe the relevant accounting
policy, significant estimates and numerical disclosure
for each note.
BASIS OF
PREPARATION
SECTION 1
Best-selling charm
in 2022
In 2022, our absolute best-seller charm was
the Murano Glass Sea Turtle Dangle Charm
which sold almost 300,000 pieces.
ANNUAL REPORT 2022 FINANCIAL STATEMENTS
Notes
2.1 Segment and revenue
information
2.2 Government grants
2.3 Staff costs
2.4 Share-based
payments
2.5 Taxation
3.1 Intangible assets
3.2 Property, plant and
equipment
3.3 Leases
3.4 Business
combinations
3.5 Inventories
3.6 Trade receivables
3.7 Provisions
3.8 Contract assets and
liabilities
4.2 Earnings per share and
dividend
4.3 Net interest-
bearing debt
4.5 Derivative financial
instruments
4.6 Net financials
ANNUAL REPORT 2022 FINANCIAL STATEMENTS
NOTE 1.1
PRINCIPAL ACCOUNTING POLICIES (CONTINUED)
ANNUAL REPORT 2022 FINANCIAL STATEMENTS ANNUAL REPORT
This section comprises notes related to the results
for the year, including reporting segment disclosures,
and provides additional information related to two of
Pandora’s performance measures: revenue and EBIT.
A detailed description of the results for the year is
given in the Financial review on page 45.
RESULTS FOR
THE YEAR
SECTION 2
Net profit
DKK million
2021: 4,160
5,029
Effective tax rate
2021: 22.6%
23.0%
EBIT margin
2021: 25.0%
25.5%
Revenue
DKK million
2021: 23,394
26,463
ANNUAL REPORT 2022 FINANCIAL STATEMENTS
ANNUAL REPORT 2022 FINANCIAL STATEMENTS
NOTE 2.1
SEGMENT AND REVENUE INFORMATION
(CONTINUED)
ANNUAL REPORT 2022 FINANCIAL STATEMENTS
ANNUAL REPORT 2022 FINANCIAL STATEMENTS
ANNUAL REPORT 2022 FINANCIAL STATEMENTS
NOTE 2.4
SHARE-BASED PAYMENTS
(CONTINUED)
ANNUAL REPORT 2022 FINANCIAL STATEMENTS
NOTE 2.5
TAXATION
(CONTINUED)
ANNUAL REPORT 2022 FINANCIAL STATEMENTS
NOTE 2.5
TAXATION
(CONTINUED)
ANNUAL REPORT 2022 FINANCIAL STATEMENTS
NOTE 2.5
TAXATION
(CONTINUED)
ANNUAL REPORT 2022 FINANCIAL STATEMENTS ANNUAL REPORT
The notes in this section describe the assets that form the basis
for the activities of Pandora and the related liabilities. Financial
risks are described in note 4.4.
In 2022, the increase in net working capital was mainly driven by
a deliberate inventory build-up to protect availability, in order to
mitigate risk of stock-outs and disruptions in the supply chain.
INVESTED CAPITAL
DKK million Notes 2022 2021
Intangible assets 3.1 7,568 7,094
Property, plant and equipment 3.2 2,226 1,816
Right-of-use assets 3.3 2,978 2,532
Other non-current financial assets 249 222
Non-current provisions 3.7 -363 -416
Net working capital 1,104 -1,181
Deferred tax, net 2.5 1,089 778
Currency derivatives, net 23 -27
Income tax receivables/payable, net -913 -935
Invested capital 13,961 9,884
WORKING CAPITAL
DKK million Notes 2022 2021
Inventories 3.5 4,211 2,991
Trade receivables 3.6 1,262 1,009
Trade payables 3.9 -3,131 -3,267
Operating working capital 2,342 732
Other receivables 1,078 808
Current provisions 3.7, 3.8 -649 -750
Commodity derivatives, net 133 -113
Contract liabilities -136 -163
Other payables -1,666 -1,694
Net working capital 1,104 -1,181
INVESTED CAPITAL
AND WORKING
CAPITAL ITEMS
SECTION 3
Invested capital
DKK million
2021: 9,884
Net working
capital/revenue
2021: -5.0%
CAPEX
DKK million
2021: 641
13,9614.2%1,290
ANNUAL REPORT 2022 FINANCIAL STATEMENTS
ANNUAL REPORT 2022 FINANCIAL STATEMENTS
NOTE 3.1
INTANGIBLE ASSETS
(CONTINUED)
ANNUAL REPORT 2022 FINANCIAL STATEMENTS
NOTE 3.1
INTANGIBLE ASSETS
(CONTINUED)
ANNUAL REPORT 2022 FINANCIAL STATEMENTS
NOTE 3.2
PROPERTY, PLANT AND EQUIPMENT
ANNUAL REPORT 2022 FINANCIAL STATEMENTS
ANNUAL REPORT 2022 FINANCIAL STATEMENTS
NOTE 3.3
LEASES
(CONTINUED)
ANNUAL REPORT 2022 FINANCIAL STATEMENTS
ANNUAL REPORT 2022 FINANCIAL STATEMENTS
ANNUAL REPORT 2022 FINANCIAL STATEMENTS
NOTE 3.6
TRADE RECEIVABLES
(CONTINUED)
ANNUAL REPORT 2022 FINANCIAL STATEMENTS
NOTE 3.8
CONTRACT ASSETS AND LIABILITIES
(CONTINUED)
ANNUAL REPORT 2022 FINANCIAL STATEMENTS ANNUAL REPORT
NET INTEREST-BEARING DEBT
DKK million 2022 2021
Loans and borrowings, non-current 1,017 1,041
Lease liabilities, non-current 2,113 1,724
Loans and borrowings, current 3,508 274
Lease liabilities, current 950 886
Cash -794 -1,043
Net interest-bearing debt 6,794 2,882
CAPITAL STRUCTURE
AND NET FINANCIALS
SECTION 4
This section includes notes related to Pandora’s capital structure and net
financials, including financial risks (see note 4.4).
As a consequence of its
operations, investments and financing, Pandora is exposed to a number of
financial risks that are monitored and managed by Pandora’s Group Treas-
ury. Pandora uses a number of derivative financial instruments to hedge its
exposures to fluctuations in commodity prices and currencies. Derivative
financial instruments are described in note 4.5.
Pandora’s capital structure policy is to maintain a leverage ratio (NIBD to
EBITDA ratio) between 0.5x and 1.5x (including leases in accordance with
IFRS 16). At 31 December 2022, the ratio was 0.8x (2021: 0.4x), reflecting
Pandora’s continued strong cash generation. In 2022, cash conversion ended
at 39% as a result of a deliberate decision to build up inventory.
Undrawn committed facilities of
DKK 6.7 billion underpin Pandora’s
strong liquidity position.
DKK 6.7bn
ANNUAL REPORT 2022 FINANCIAL STATEMENTS
ANNUAL REPORT 2022 FINANCIAL STATEMENTS
ANNUAL REPORT 2022 FINANCIAL STATEMENTS
Min Max
COMMODITY HEDGE
RATIO TARGET (%)
%
MONTHS AHEAD
%
MONTHS AHEAD
%
MONTHS AHEAD
%
MONTHS AHEAD
ANNUAL REPORT 2022 FINANCIAL STATEMENTS
NOTE 4.4
FINANCIAL RISKS
(CONTINUED)
ANNUAL REPORT 2022 FINANCIAL STATEMENTS
NOTE 4.4
FINANCIAL RISKS
(CONTINUED)
ANNUAL REPORT 2022 FINANCIAL STATEMENTS
ANNUAL REPORT 2022 FINANCIAL STATEMENTS
ANNUAL REPORT 2022 FINANCIAL STATEMENTS ANNUAL REPORT
OTHER
DISCLOSURES
SECTION 5
Third best-selling
ring in 2022
The Marvel Infinity ring from the Marvel X
Pandora collection was among our top three
best-selling rings overall in 2022. Since the
ring was introduced in early 2022, Marvel
fans and excited consumers have bought a
total of almost 135,000 pieces.
ANNUAL REPORT 2022 FINANCIAL STATEMENTS
ANNUAL REPORT 2022 FINANCIAL STATEMENTS
ANNUAL REPORT 2022 FINANCIAL STATEMENTS
Forward-looking statements
This Annual Report contains forward-looking statements, including, but not limited to, guidance, expectations, strategies, objectives and
statements regarding future events or prospects with respect to the Company’s future financial and operating results. Forward-look-
ing statements include, without limitation, any statement that may predict, forecast, indicate or imply future results, performance or
achievements, and may contain words such as “expect”, “estimate”, “intend”, “will be”, “will continue”, “will result”, “could”, “may”, “might”
or any variations of such words or other words with similar meanings. Forward-looking statements are subject to risks and uncertain-
ties that could cause the Company’s actual results to differ materially from the results discussed in such forward-looking statements.
Prospective information is based on management’s then current expectations or forecasts. Such information is subject to the risk that
such expectations or forecasts, or the assumptions underlying such expectations or forecasts, may change. The Company assumes no
obligation to update any such forward-looking statements to reflect actual results, changes in assumptions or changes in other factors
affecting such forward-looking statements. Some important risk factors that could cause the Company’s actual results to differ ma-
terially from those expressed in its forward-looking statements include, but are not limited to: economic and geopolitical uncertainty
(including interest rates and exchange rates), financial and regulatory developments, general changes in market trends and end-con-
sumer preferences, demand for the Company’s products, competition, the availability and pricing of materials used by the Company,
production and distribution-related issues, IT failures, litigation, pandemics, and other unforeseen factors. The nature of the Company’s
business means that risk factors and uncertainties may arise, and it may not be possible for management to predict all such risk factors,
nor to assess the impact of all such risk factors on the Company’s business or the extent to which any individual risk factor, or combina-
tion of factors, may cause results to differ materially from those contained in any forward-looking statement. Accordingly, forward-look-
ing statements should not be relied on as a prediction of actual results.
Key figures and financial ratios stated in the consolidated financial statements have been
calculated in accordance with the CFA Society Denmark guidelines.
Pandora presents the following alternative performance measures not defined according to IFRS (non-GAAP measures) in
the Annual Report:
Furthermore, a breakdown of ‘Operating working capital’, ‘Net working capital’ and ‘Invested capital’ is given on the section 3 divider.
NOTE 5.6
FINANCIAL DEFINITIONS
Revenue growth, % (The current year’s revenue - last year’s revenue)
Last year’s revenue
Revenue growth,
local currency, %
(The current year’s revenue at last year’s exchange rates - last year’s revenue)
Last year’s revenue
Gross margin, % Gross profit / revenue
Effective tax rate, % Income tax expense / profit before tax
Equity ratio, % Equity / total assets
Payout ratio, % Dividends paid for the year / net profit
Total payout ratio, % Dividends paid for the year plus value of share buyback / net profit
EPS basic Net profit / average number of shares outstanding
EPS diluted Net profit / average number of shares outstanding, including the dilutive
effect of share options ‘in the money’
Sell-out
growth,
(like-for-like) %
Like-for-like including stores which have
been operating for +12 months and
stores which are temporarily closed due
to COVID-19
Organic
growth, %
Revenue growth in local currency relative
to the same period in the comparative
year adjusted for the acquisition/
divestment of distributors and franchisee
stores (the effect of converting wholesale
to retail revenue and vice versa)
EBITDA Earnings before interest, tax, depreciation
and amortisation
EBITDA margin, % EBITDA / revenue
EBIT
Earnings before interest and tax
EBIT margin,%
EBIT / revenue
Free Cash Flows
Cash flows from operating activities,
excluding financial items and cash flows
from investing activities excluding acquisi-
tions of subsidiaries and activities
Capital expenditure
(CAPEX)
Purchase of intangible assets and
property, plant and equipment for the
year, excl. acquisitions of subsidiaries
Days sales
outstanding (DSO)
Last three months of wholesale and
third-party distribution revenue relative
to trade receivables from these channels
and not adjusted for VAT
Return on invested
capital (ROIC), %
EBIT / invested capital incl. goodwill
NIBD Loans, borrowings, capitalised leases and
other liabilities relating to obligations to
acquire non-controlling interests (current
and non-current) less cash
NIBD to EBITDA NIBD / EBITDA (rolling 12 months)
Cash conversion
incl. lease
payments, %
Free cash flows before acquisitions / EBIT
ANNUAL REPORT MANAGEMENT STATEMENT
Executive
Management
Board of
Directors
INDEPENDENT AUDITOR’S REPORT ANNUAL REPORT
INDEPENDENT AUDITOR’S REPORT
INDEPENDENT AUDITOR’S REPORT ANNUAL REPORT
DESCRIPTION OF
MATTER
CONSIDERATION OF THE
MATTER IN THE AUDIT
INDEPENDENT AUDITOR’S REPORTANNUAL REPORT
INDEPENDENT AUDITOR’S REPORT ANNUAL REPORT
CVR no. 30 70 02 28
FINANCIAL REVIEW
The Parent Company operates as the principal of Pandora,
and all inventories are consequently traded from the
crafting facilities in Thailand to wholesalers and sales
subsidiaries through the Parent Company. Similarly, all
inventories are returned from subsidiaries through the
Parent Company for the purpose of remelting any excess
inventory. Gross profit is therefore impacted by realised
losses from remelting activities and unrealised losses from
inventory write-downs. Fluctuations in market prices of
silver and gold also have a material impact on gross profit.
Apart from the sale of jewellery, the Parent Company
maintains and develops Group functions, including
administration, distribution, business development, retail
set-up, product development and risk management, which
all determine the activity level in the Parent Company.
The risk management activities carried out by the Parent
Company include hedging the Group’s risk relating to
commodity prices and exchange rates.
Revenue was DKK 16.7 billion (2021: DKK 13.6 billion), while
net profit was DKK 12.7 billion (2021: DKK 5.4 billion). The
increase in net profit was mainly related to the increasing
activity and gain from intra-group share transfer. In 2022,
Pandora A/S received dividends from subsidiaries of DKK
2.4 billion (2021: DKK 2.8 billion). At the end of 2022, equity
amounted to DKK 15.6 billion (2021: DKK 7.9 billion). The
increase was primarily driven by profit for the year partly
offset by paid dividend of DKK 16 per share, corresponding
to DKK 1.5 billion (2021: DKK 1.5 billion). Free cash flows
including lease payments ended at DKK 8.2 billion (2021:
DKK 3.0 billion) driven mainly by a strong result for the year.
Other events and impacts in 2022:
• In 2022, Pandora A/S continued its existing share
buyback programmes and launched a new share buyback
programme under which Pandora expects to buy back own
shares up to a maximum value of DKK 3.3 billion. A total of
6,595,620 treasury shares were acquired during the year,
corresponding to a total purchase price of DKK 3.6 billion.
• In 2022, Pandora initiated the expansion of the Group’s
crafting capacity in Vietnam to support the company’s
long-term growth. By diversifying its geographical footprint,
Pandora will become more resilient to potential supply
disruptions as well as strengthen its business continuity plans.
As a result, Pandora decided to reorganise its crafting
activities into a separate crafting sub-group by establishing
a new intermediate holding company, Pandora Production
Holding A/S, which will oversee the crafting activities across
the Group’s crafting facilities. Consequently, Pandora A/S
transferred its controlling equity investment in Pandora
Production Co. Ltd. to Pandora Production Holding A/S as a
contribution in-kind against shares in Pandora Production
Holding A/S. The intra-group transaction was carried out
at fair value, which resulted in a gain of DKK 5.9 billion and
is described in more detail in note 1.1 Principal accounting
policies
and note 3.3 Investments in subsidiaries
and business combinations,
including the significant
assumptions in measuring fair value.
DKK billion
revenue 2022
DKK billion
net prot 2022
16.7
12.7
ANNUAL REPORT 2022 PARENT COMPANY
INCOME STATEMENT
DKK million Notes 2022 2021
Revenue 2.1 16,686 13,583
Cost of sales -7,226 -6,440
Gross profit 9,460 7,143
Sales, distribution and marketing expenses 2.2, 3.1 -2,295 -2,082
Administrative expenses 2.2, 3.1 -1,261 -1,259
Operating profit 5,904 3,802
Gain from intra-group share transfer 3.3 5,917 -
Dividends from subsidiaries 3.3 2,437 2,848
Impairment of investments in subsidiaries 3.3 -60 -135
Finance income 4.5 652 222
Finance costs 4.5 -799 -509
Profit before tax 14,051 6,228
Income tax expense 2.4 -1,380 -808
Net profit for the year 12,671 5,420
STATEMENT OF COMPREHENSIVE INCOME
DKK million Notes 2022 2021
Net profit for the year 12,671 5,420
Other comprehensive income:
Items that may be reclassified to profit/loss for the year
Commodity hedging instruments:
- Realised in net cost of sales -1 -4
- Realised in net financials -2 -4
- Fair value adjustments -4 8
Foreign exchange hedging instruments:
- Realised in net financials 110 249
- Fair value adjustments -61 -287
Tax on other comprehensive income, hedging instruments,
income/expense 2.4 -9 8
Other comprehensive income, net of tax 33 -29
Total comprehensive income for the year 12,705 5,391
STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 31 DECEMBER
ANNUAL REPORT 2022 PARENT COMPANY
ASSETS
DKK million Notes 2022 2021
Intangible assets 3.1 3,705 3,573
Property, plant and equipment 23 31
Right-of-use assets 3.2 99 104
Investments in subsidiaries 3.3 11,140 5,257
Loans to subsidiaries 5.2 5,035 878
Other financial assets 26 12
Total non-current assets 20,028 9,855
Inventories 3.4 1,023 687
Trade receivables 14 13
Receivables from subsidiaries 5.2 3,690 6,829
Right-of-return assets 3.5 258 216
Derivative financial instruments 4.3, 4.4 231 69
Income tax receivable 37 27
Other receivables 403 116
Cash 37 142
Total current assets 5,692 8,099
Total assets 25,721 17,953
EQUITY AND LIABILITIES
DKK million Notes 2022 2021
Share capital 4.1 96 100
Treasury shares -3,320 -3,416
Reserves 329 216
Dividend proposed 1,430 1,516
Retained earnings 17,051 9,462
Total equity 15,586 7,877
Provisions 52 51
Loans and borrowings 4.2, 4.4 1,090 1,124
Deferred tax liabilities 2.4 163 93
Total non-current liabilities 1,306 1,269
Refund liabilities 3.5 1,941 1,674
Loans and borrowings 4.2, 4.4 3,506 298
Derivative financial instruments 4.3, 4.4 74 209
Payables to subsidiaries 4.4, 5.2 1,455 4,937
Trade payables 3.6, 4.4 786 831
Income tax payable 580 488
Other payables 4.4 486 371
Total current liabilities 8,829 8,807
Total liabilities 10,135 10,076
Total equity and liabilities 25,721 17,953
BALANCE SHEET
AT 31 DECEMBER
ANNUAL REPORT 2022 PARENT COMPANY
DKK million Notes
Share
capital
Treasury
shares
Hedging
reserve
Other
reserves
1
Dividend
proposed
Retained
earnings
Total
equity
2022
Equity at 1 January 100 -3,416 -20 236 1,516 9,462 7,877
Net profit for the year - - - - - 12,671 12,671
Other comprehensive income, net of tax - - 33 - - - 33
Total comprehensive income for the year - - 33 - - 12,671 12,705
Transfers - - - 80 - -80 -
Share-based payments 2.3 - 199 - - - -93 106
Purchase of treasury shares 4.1 - -3,588 - - - - -3,588
Cancellation of treasury shares 4.1 -5 3,486 - - - -3,481 -
Dividend paid - - - - -1,516 2 -1,514
Dividend proposed - - - - 1,430 -1,430 -
Equity at 31 December 96 -3,320 13 316 1,430 17,051 15,586
The Board of Directors will propose at the Annual General
Meeting that a dividend of DKK 16 per share, corresponding
to DKK 1.4 billion (2021: DKK 16 per share, corresponding to
DKK 1.5 billion), be distributed for 2022.
In 2021, an extraordinary dividend of DKK 15 per share was
paid, corresponding to DKK 1.5 billion.
In 2022, Pandora continued the share buyback programmes,
which resulted in repurchases of 6,595,620 treasury shares,
corresponding to DKK 3.6 billion (2021: 3,943,797 treasury
shares, corresponding to DKK 3.3 billion).
For further shareholder information on dividend payments,
see note 4.1 Share capital
to the consolidated financial
statements.
STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 31 DECEMBER
2021
Equity at 1 January 100 -93 9 198 - 6,830 7,044
Net profit for the year - - - - - 5,420 5,420
Other comprehensive income, net of tax - - -29 - - - -29
Total comprehensive income for the year - - -29 - - 5,420 5,391
Transfers - - - 38 - -38 -
Share-based payments 2.3 - 1 - - - 202 203
Effect of merger with subsidiary 3.3 - - - - - 45 45
Purchase of treasury shares 4.1 - -3,325 - - - - -3,325
Dividend paid - - - - -1,481 2 -1,479
Dividend proposed - - - - 2,997 -2,997 -
Equity at 31 December 100 -3,416 -20 236 1,516 9,462 7,877
¹ Other reserves include non-distributable reserves under Danish legislation relating to the capitalisation of internal development projects.
ANNUAL REPORT 2022 PARENT COMPANY
DKK million Notes 2022 2021
Operating profit 5,904 3,802
Depreciation and amortisation 238 286
Share-based payments 2.3 58 106
Change in inventories -335 -268
Change in intercompany receivables/payables 3,815 -1,629
Change in receivables -344 171
Change in payables and other liabilities 269 97
Other non-cash adjustments 4.6 -408 384
Finance income received 239 31
Finance costs paid -295 -369
Income tax paid -1,219 -513
Cash flows from operating activities, net 7,922 2,098
Acquisitions of subsidiaries and activities, net of cash acquired 3.3 3 138
Purchase of intangible assets -325 -253
Purchase of property, plant and equipment -3 -
Change in other financial assets -1 -
Dividends received
1
575 858
Cash flows from investing activities, net 249 743
Dividend paid -1,514 -1,479
Purchase of treasury shares 4.1 -3,527 -3,325
Proceeds from loans and borrowings 4.2 4,939 1,315
Repayment of loans and borrowings 4.2 -8,319 -1,412
Repayment of lease commitments 4.2 -28 -26
Cash flows from financing activities, net -8,449 -4,927
Net increase/decrease in cash -277 -2,086
DKK million Notes 2022 2021
Cash and cash equivalents at 1 January 142 2,228
Net increase/decrease in cash -277 -2,086
Cash and cash equivalents at 31 December -135 142
Cash balances 37 142
Overdrafts -172 -
Cash and cash equivalents at 31 December -135 142
Cash flows from operating activities, net 7,922 2,098
- Finance income received -239 -31
- Finance costs paid 295 369
Cash flows from investing activities, net 249 743
- Acquisition of subsidiaries and activities, net of cash acquired -3 -138
Free cash flows 8,225 3,041
Unutilised committed credit facilities
2
6,693 6,023
1
Non-cash dividends received amounted to DKK 1.9 billion (2021: DKK 2.0 billion).
2
See note 4.4 Financial risks to the consolidated financial statements.
STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 31 DECEMBER
The above cannot be derived directly from the income statement and the balance sheet.
ANNUAL REPORT 2022 PARENT COMPANY
Notes for the Parent Company
The notes are grouped into five sections related to key
figures. The notes contain the relevant financial information
as well as a description of accounting policies applied for the
topics of the individual notes. For some notes, reference is
made to notes in the consolidated financial statements.
SECTION 1
BASIS OF PREPARATION
1.1 Principal accounting policies 103
1.2 New accounting policies and disclosures 103
1.3 Management’s judgements and
estimates under IFRS 103
SECTION 2
RESULTS FOR THE YEAR
2.1 Revenue from contracts with customers 104
2.2 Sta costs 104
2.3 Share-based payments 104
2.4 Taxation 104
SECTION 3
INVESTED CAPITAL AND
WORKING CAPITAL ITEMS
3.1 Intangible assets 105
3.2 Leases 106
3.3 Investments in subsidiaries and business
combinations 106
3.4 Inventories 107
3.5 Contract assets and liabilities 107
3.6 Trade payables 107
CONTENTS
SECTION 4
CAPITAL STRUCTURE AND
NET FINANCIALS
4.1 Share capital 107
4.2 Liabilities from nancing activities 108
4.3 Derivative nancial instruments 108
4.4 Financial risks 108
4.5 Net nancials 109
4.6 Other non-cash adjustments 109
SECTION 5
OTHER DISCLOSURES
5.1 Contingent assets and liabilities 109
5.2 Related parties 110
5.3 Fees to independent auditor 110
ANNUAL REPORT 2022 PARENT COMPANY
The Parent Company financial statements show the finan-
cial position, results and cash flows of Pandora A/S on a
non-consolidated basis for the financial year 1 January to 31
December 2022.
Parent Company financial statements
The accounting policies of the Parent Company are un-
changed from last year and identical to the accounting
policies in Pandora’s consolidated financial statements, with
the following exceptions:
Foreign currency translation
Foreign exchange adjustments of balances accounted for as
part of the total net investment in entities that have a func-
tional currency other than DKK are recognised in profit for
the year as net financials in the Parent Company financial
statements.
Derivative financial instruments
The effective portion of realised and unrealised gains and
losses on all commodity hedging instruments is reconised
as cost of goods sold, while the ineffective portion is rec-
ognised in net financials. Derivative financial instruments
are treated as economic hedging if the hedge accounting
requirements in IFRS 9 are not met.
Dividends from subsidiaries
Dividends from investments in subsidiaries are recognised in
the financial year in which they are declared.
NOTE 1.1
PRINCIPAL ACCOUNTING
POLICIES
NOTE 1.2
NEW ACCOUNTING POLICIES AND DISCLOSURES
The description in note 1.2 New accounting policies and disclosures to the consolidated
financial statements regarding new standards issued effective for the Annual Report for 2022
fully covers the Parent Company as well.
Investments in subsidiaries
Investments in subsidiaries are measured at cost. Impair-
ment testing is carried out if there is any indication of
impairment, as described in Pandora's consolidated financial
statements. The carrying amount is written down to the
recoverable amount whenever the carrying amount exceeds
the recoverable amount. If the Parent Company has a legal
or constructive obligation to cover a deficit in subsidiaries, a
provision for this is recognised.
Intra-group restructuring
Transfer of shares for shares
Pandora A/S accounts for transactions in which an investment
in a subsidiary is acquired in exchange for shares in subsidiar-
ies, at the fair value of the shares transferred. As of the date
of the transfer of the shares, the investment in the subsidiary
is disposed of at fair value and the gain/loss is recognised in
the income statement.
Mergers
Mergers are accounted for at booked value based on the
consolidated accounts. As of the date of the transfer of the
business, the investment in the subsidiary is replaced by
the consolidated carrying amounts of underlying assets and
liabilities. The difference between the consolidated carrying
amounts and investment in subsidiary is recognised in equity.
Transfer of businesses without consideration are reflected
in the financial statements of the Parent Company from
the date of transfer, hence comparative information for the
transferred business has not been adjusted.
NOTE 1.3
MANAGEMENT’S JUDGEMENTS AND
ESTIMATES UNDER IFRS
SIGNIFICANT ACCOUNTING ESTIMATES
In the process of preparing the Parent Company financial statements, a number of accounting es-
timates and judgements have been made that affect assets and liabilities at the reporting date and
income and expenses for the reporting period. Management regularly reassesses these estimates
and judgements, partly on the basis of historical experience and a number of other factors in the
given circumstances, see note 1.3 Management’s judgements and estimates under IFRS
to the
consolidated financial statements.
For the significant accounting estimates related to the impairment of subsidiaries see note
3.3 Investments in subsidiaries and business combinations
and for the return and warranty
provision see note 2.1 Revenue from contracts with customers
and note 3.5 Contract
assets and liabilities.
Profit for the year was significantly impacted by gain from intra-group transfer of shares. Significant
accounting estimates are described in note 3.3 Investments in subsidiaries and business
combinations.
ANNUAL REPORT 2022 PARENT COMPANY
REVENUE BY SALES CHANNEL
DKK million 2022 2021
Third-party distribution 16,686 13,583
Total revenue 16,686 13,583
REVENUE BY SEGMENTS
DKK million 2022 2021
Moments incl. Collabs 12,117 9,496
- Moments 10,404 8,504
- Collabs 1,714 992
Style 4,569 4,087
- Timeless 2,540 2,266
- Signature 1,136 1,183
- ME 575 567
- Diamonds by Pandora 318 70
Total revenue 16,686 13,583
Goods transferred at a point in time 16,684 13,580
Services transferred over time 2 4
Total revenue 16,686 13,583
NOTE 2.1
REVENUE FROM CONTRACTS
WITH CUSTOMERS
ACCOUNTING POLICIES
Revenue is recognised when control of the products has been transferred to the subsidiaries.
Change of control of the products occurs when they have been delivered to the subsidiary and
no further obligation exists that can affect the transfer of control. The Parent Company provides
return rights to subsidiaries, which cover products received in subsidiaries for both returns and
warranty, based on historical return rates and current return liabilities in subsidiaries.
DKK million 2022 2021
Wages and salaries 850 760
Pensions 64 54
Share-based payments 58 106
Social security costs 16 7
Other staff costs 103 65
Total staff costs 1,090 993
Staff costs have been recognised in the income statement:
Sales, distribution and marketing expenses 530 497
Administrative expenses 561 496
Total staff costs 1,090 993
Average number of full-time employees during the year 898 797
The performance share programmes described in note 2.4
Share-based payments
to the consolidated financial state-
ments are issued by Pandora A/S. The value of shares granted to
employees in the Parent Company’s subsidiaries is recognised
in investments in subsidiaries. As described in note 2.4 Share-
based payments
to the consolidated financial statements,
the costs related to share-based payments were DKK 87 million
(2021: DKK 166 million), of which DKK 58 million relates to
Pandora A/S (2021: DKK 106 million).
NOTE 2.2
STAFF COSTS
NOTE 2.3
SHAREBASED PAYMENTS
NOTE 2.4
TAXATION
ACCOUNTING POLICIES
Income tax
Pandora A/S is taxed jointly with its Danish subsidiaries.
These subsidiaries are included in the joint taxation from
the date they are recognised in the consolidated financial
statements and up to the date on which they are no longer
consolidated. The jointly taxed Danish companies are
taxed under the on-account tax scheme.
Further information is provided in note 2.5 Taxation
to
the consolidated financial statements.
Revenue mainly comprises sales of jewellery to subsidiaries
carrying out the distribution. All sales are thus intra-group
sales. Contracts are generally five-year distribution con-
tracts.
Key management personnel at Pandora A/S represent the same individuals as key management
personnel of the Pandora Group. For information regarding remuneration of key management
personnel of Pandora A/S, see note 2.3 Staff costs
to the consolidated financial statements.
ANNUAL REPORT 2022 PARENT COMPANY
INCOME TAX EXPENSE
DKK million 2022 2021
Current income tax charge for the year
1
1,291 1,009
Change in deferred tax for the year 83 -180
Adjustment to current tax for prior years 9 -21
Adjustment to deferred tax for
prior years -3 -
Total income tax expense 1,380 808
Deferred tax on other comprehensive
income 9 -8
Tax on other comprehensive income 9 -8
1
Withholding taxes are included in current income tax charge for the year.
RECONCILIATION OF EFFECTIVE
TAX RATE AND TAX
2022 2021
% DKK million % DKK million
Profit before tax 14,051 6,228
Corporate tax rate in Denmark, 22% 22.0% 3,091 22.0% 1,370
Non-taxable dividend income -3.9% -536 -10.1% -627
Non-deductIble impairment expenses 0.1% 13 0.5% 30
Gain from intra-group share transfer -9.3% -1,302 - -
Non-deductible expenses and non-taxable income 0.5% 67 0.1% 3
Other adjustments incl. adjustment to tax for prior years 0.1% 9 -0.2% -14
Withholding taxes 0.3% 38 0.7% 46
Effective income tax rate/income tax expense 9.8% 1,380
13.0% 808
DEFERRED TAX
DKK million 2022 2021
Deferred tax at 1 January -93 -318
Recognised in the income statement -80 180
Recognised in other
comprehensive income -9 8
Recognised in equity,
share-based payments 19 37
Deferred tax at 31 December -163 -93
Deferred tax liabilities -163 -93
Deferred tax, net -163 -93
BREAKDOWN OF DEFERRED TAX
DKK million 2022 2021
Intangible assets -605 -552
Property, plant and equipment 9 10
Inventories 25 6
Provisions 380 329
Other assets and liabilities 28 114
Deferred tax, net -163 -93
NOTE 2.4
TAXATION
CONTINUED
NOTE 3.1
INTANGIBLE ASSETS
DKK million
Goodwill
1
Brand
1
Distri-
bution
Other
intangible
assets
Total
Cost at 1 January 1,139 1,044 1,541 1,273 4,997
Additions - - - 337 337
Disposals - - - -2 -2
Cost at 31 December 1,139 1,044 1,541 1,608 5,332
Amortisation and impairment losses
at 1 January - - 457 967 1,424
Amortisation for the year - - 30 173 203
Amortisation and impairment losses
at 31 December - - 487 1,140 1,627
Carrying amount at 31 December 1,139 1,044 1,054 467 3,705
Cost at 1 January 549 1,044 1,541 1,011 4,144
Additions from merger 590 - - - 590
Additions - - - 270 270
Disposals - - - -8 -8
Cost at 31 December 1,139 1,044 1,541 1,273 4,997
Amortisation and impairment losses
at 1 January - - 427 755 1,182
Amortisation for the year - - 30 130 160
Impairment loss for the year
2
- - - 82 82
Amortisation and impairment losses
at 31 December - - 457 967 1,424
Carrying amount at 31 December 1,139 1,044 1,084 306 3,573
1
The impairment test did not identify any need for impairment losses to be recognised, and no probable change in any key assump-
tions that would cause the carrying amount to exceed the recoverable amounts.
2
The impairment loss of DKK 82 million in 2021 relates to write-down of software applications. The loss has mainly been recognised
as sales, distribution and marketing expenses in the income statement.
ANNUAL REPORT 2022 PARENT COMPANY
LEASE LIABILITIES
DKK million 2022 2021
Non-current 74 83
Current 26 24
Total lease liabilities 100 107
Additions of right-of-use assets were DKK 20 million in 2022
(2021: DKK 3 million).
NOTE 3.2
LEASES
RIGHTOFUSE ASSETS
DKK million 2022 2021
Property 94 98
Cars 5 6
Total right-of-use assets 99 104
Amounts recognised in the balance sheet:
DKK million 2022 2021
Sales, distribution and marketing expenses 93 125
Administrative expenses 110 117
Total 203 242
NOTE 3.3
INVESTMENTS IN SUBSIDIARIES AND BUSINESS
COMBINATIONS
INVESTMENTS IN SUBSIDIARIES
DKK million 2022 2021
Cost at 1 January 5,499 6,457
Additions
1
7,120 4
Disposals
2
-1,202 -1,022
Additions relating to share-based payments 25 60
Cost at 31 December 11,442 5,499
Impairment at 1 January 242 107
Impairment for the year 60 135
Impairment at 31 December 302 242
Carrying amount at 31 December 11,140 5,257
1
In 2022, mainly relating to the investment into Pandora Production Holding A/S of DKK 7,114 million.
2
In 2022, mainly relating to the intra-group share transfer of Pandora Production Co. Ltd., Thailand, of DKK 1,197 million. In 2021,
DKK 899 million related to the merger of Pandora Jewelry Central Western Europe A/S into Pandora A/S, and DKK 114 million relat-
ed to the capital reduction in Pandora Jewelry Mexico.
Amortisation and impairment losses have been recognised in the
income statement as follows:
Depreciation on right-of-use assets charged to the income statement for the period was
DKK 26 million (2021: DKK 26 million).
Interest expense for the period was DKK 1 million (2021: DKK 1 million). Total cash outflows
relating to leases was DKK 29 million in 2022 (2021: DKK 26 million).
NOTE 3.1
INTANGIBLE ASSETS
CONTINUED
Lease liabilities are recognised in loans and borrowings.
Dividend received
In 2022, Pandora A/S received a total of DKK 2.4 billion in
dividends, mainly from subsidiaries in Thailand (DKK 1.1
billion), the UK (DKK 0.5 billion), and the US (DKK 0.3 billion).
In 2021, Pandora A/S received a total of DKK 2.8 billion in div-
idends, mainly from subsidiaries in Thailand (DKK 0.9 billion),
the US (DKK 0.7 billion), the UK (DKK 0.4 billion) and Spain
(DKK 0.3 billion).
Annual impairment test
As at 31 December 2022, the cost price of investments
in subsidiaries was assessed for impairment and Pandora
identified an indication of impairment. The impairment test
identified impairment charges for 2022 amounting to DKK 60
million (2021: DKK 135 million). The impairment was related
to investment in the subsidiary in South Africa.
The impairment test was based on a three-year forecast
and an applied market-specific discount rate in the range
of 18% to 22%. The growth rate applied was an estimate of
the expected growth for the market in the terminal period,
including the expected average inflation.
Transfer of Pandora Production Co. Ltd to
Pandora Production Holding A/S
In 2022, Pandora A/S made an intra-group restructur-
ing whereby its controlling equity investment in Pandora
Production Co. Ltd., Thailand, was transferred as a contri-
bution-in-kind to a newly established intermediate holding
company, Pandora Production Holding A/S.
ANNUAL REPORT 2022 PARENT COMPANY
DKK million 2022 2021
Finished goods 868 588
Point-of-sale materials 155 99
Total inventories at 31 December 1,023 687
Inventory write-downs at 1 January 253 259
Write-downs during the year 163 113
Utilised in the year -142 -119
Inventory write-downs at 31 December 274 253
NOTE 3.4
INVENTORIES
Inventory write-downs are recognised in cost of sales, DKK
152 million (2021: DKK 99 million), and operating expenses,
DKK 11 million (2021: DKK 14 million).
DKK million 2022 2021
Contract assets
Receivables from sale of products 1,046 5,430
Right-of-return assets 258 216
Total contract assets 1,304 5,646
Contract liabilities
Refund liabilities 1,941 1,674
Total contract liabilities 1,941 1,674
Refund liabilities
The Parent Company recognises a refund liability related to
return rights provided to subsidiaries. A corresponding right-
of-return asset is also recognised as part of contract assets.
The value of the right-of-return asset is determined by how
many of the returned products are expected to be sold.
Remaining products are written down to remelt value.
NOTE 3.5
CONTRACT ASSETS
AND LIABILITIES
NOTE 3.6
TRADE PAYABLES
Pandora generally accepts that vendors sell off their
receivables arising from the sale of goods and services to
Pandora to a third party. Pandora has established a supply
chain financing programme where vendors can sell off
their receivables from Pandora on 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 statement of cash flows (working capital within cash
flows from operations) and amounted to DKK 54 million at 31
December 2022 (2021: DKK 24 million).
See note 4.1 Share capital to the consolidated financial
statements.
NOTE 4.1
SHARE CAPITAL
The commercial and strategic rationale is explained in the Management’s review. For those rea-
sons, and the fact that the new holding structure impacts future cash flows for the Parent Com-
pany, it is management’s judgement that the transaction should be accounted for at fair value.
The intra-group transfer was carried out at the fair value of Pandora Production Co. Ltd, which
amounted to DKK 7.1 billion using a generally accepted valuation method in the form of a re-
turn-based discounted cash flow valuation model. A gain of DKK 5.9 billion is recognised within
Gain from intra-group share transfer in the income statement. The transaction is non-cash and
there is no impact on the statement of cash flows.
Input and assumptions applied in the discounted cash flow valuation model comprise
level 3 inputs only, as there are no quoted prices in active markets for an identical asset or
other observable market inputs.
The valuation is based on internal financial forecasts for the period 2023 to 2027, reflecting the
macroeconomic uncertainties as well as the cannibalisation effect from the new crafting facility
in Vietnam. In addition, the valuation is affected by the Group’s transfer pricing setup, a terminal
growth rate of 1.6% and an applied market specific discount rate post tax of 10%.
As an illustration of the sensitivity of the assumptions, a 0.5 percentage points increase/de-
crease in the discount rate would affect the valuation by approximately +/- DKK 0.4 billion,
and a 1.0 percentage point increase/decrease in the forecasted EBIT margin would affect the
valuation by approximately +/- DKK 0.6 billion.
Merger with Pandora Jewelry Central Western Europe A/S in 2021
In 2021, Pandora A/S merged with the 100%-owned subsidiary Pandora Jewelry Central
Western Europe A/S, with Pandora A/S as the surviving company. Assets obtained through the
merger consisted of goodwill (DKK 590 million), cash (DKK 17 million), other current assets (DKK
1,176 million) and total liabilities (DKK 839 million).
NOTE 3.3
INVESTMENTS IN SUBSIDIARIES AND BUSINESS
COMBINATIONS
CONTINUED
ANNUAL REPORT 2022 PARENT COMPANY
NOTE 4.2
LIABILITIES FROM FINANCING ACTIVITIES
TOTAL LIABILITIES FROM
FINANCING ACTIVITIES
DKK million
Financial
liabilities
1 January
Cash
flows,
net
1
New
leases Other
2
Financial
liabilities
31 December
Non-current borrowings 1,041 74 - -99 1,017
Non-current lease liabilities 83 - 13 -23 74
Current borrowings 274 2,935 - 272 3,481
Current lease liabilities 24 -28 7 23 26
Total liabilities from financing
activities 1,423 2,981 20 173 4,597
Non-current borrowings - 1,315 - -273 1,041
Non-current lease liabilities 105 - 2 -23 83
Current borrowings 2,976 -2,975 - 273 274
Current lease liabilities 27 -26 1 22 24
Total liabilities from financing
activities 3,107 -1,687 3 -1 1,423
1
Cash flows from loans and borrowings in the statement of cash flows include internal loan movements. The effect was an outflow
of DKK 6.4 billion in 2022 (2021: inflow of DKK 1.6 billion).
2
Includes the effect of the reclassification of the non-current portion of interest-bearing loans and borrowings to current due to the
passage of time. Further, it includes the effect of accrued but not yet paid interest on interest-bearing loans and borrowings and
upfront prepayment of lease liabilities. The Parent Company classifies interest paid as cash flows from operating activities.
As a consequence of its operations, investments and financ-
ing, Pandora A/S is exposed to a number of financial risks that
are monitored and managed by Pandora's Group Treasury.
The Parent Company’s financial risks and the management of
these are in all material respects identical to the disclosures
LIABILITIES FALL DUE AS FOLLOWS
DKK million
Within
1 year
Within
1 and 5 years
After more
than 5 years
Total
2022
Non-derivatives
Loans and borrowings 3,588 813 253 4,654
Lease liabilities 27 75 - 102
Payables to subsidiaries 1,455 - - 1,455
Trade payables 786 - - 786
Other payables 77 - - 77
Derivatives
Derivative financial instruments 74 - - 74
Total at 31 December 6,007 888 253 7,148
2021
Non-derivatives
Loans and borrowings 274 1,050 - 1,324
Lease liabilities 25 75 9 109
Payables to subsidiaries 4,937 - - 4,937
Trade payables 831 - - 831
Other payables 112 - - 112
Derivatives
Derivative financial instruments 209 - - 209
Total at 31 December 6,388 1,125 9 7,522
NOTE 4.4
FINANCIAL RISKS
NOTE 4.3
DERIVATIVE FINANCIAL INSTRUMENTS
All hedging is carried out by the Parent Company’s Treasury department. As all instruments
are also recorded in the Parent Company, all effects from financial instruments are shown in
note 4.5 Derivative financial instruments
to the consolidated financial statements.
made in note 4.4 Financial risks to the con solidated finan-
cial statements, unless otherwise stated below.
Credit risk
The Parent Company’s credit risk includes the risk related to
receivables from subsidiaries.
Contractual maturities of financial liabilities
The table below provides a breakdown of Pandora A/S’
financial liabilities similar to note 4.4 Financial risks
to the
consolidated financial statements.
ANNUAL REPORT 2022 PARENT COMPANY
FINANCE INCOME
DKK million 2022 2021
Reclassied from equity hedge reserves 19 53
Total finance income from derivative financial instruments 19 53
Finance income from loans and receivables measured at amortised cost:
Interest income from subsidiaries 300 31
Foreign exchange gains 330 138
Interest income, bank 2 -
Total finance income from loans and receivables 633 169
Total finance income 652 222
FINANCE COSTS
DKK million 2022 2021
Reclassified from equity hedge reserves 127 298
Total finance costs from derivative financial instruments 127 298
Finance costs from financial liabilities measured at amortised cost:
Interest costs to subsidiaries 2 11
Foreign exchange losses 524 120
Interest on loans and borrowings 100 34
Interest on lease liabilities 1 1
Other finance costs 46 45
Total finance costs from loans and borrowings 673 211
Total finance costs 799 509
NOTE 4.5
NET FINANCIALS
NOTE 4.6
OTHER NONCASH
ADJUSTMENTS
OTHER NONCASH ADJUSTMENTS
DKK million 2022 2021
Effects from exchange rate adjustments -146 5
Effects from derivative financial instruments -255 380
Other, incl. gains/losses from sale of
property, plant and equipment -7 -
Total other non-cash adjustments -408 384
Litigation
Pandora is a party to various legal proceedings with current
business partners, authorities and other third parties, related
to copyright, marketing conduct and pricing. None of these
proceedings is expected to have a material effect on Pando-
ra A/S’ financial position or future earnings.
Contractual obligations
Pandora A/S has entered into a number of long-term pur-
chase, sales and supply contracts in the course of the com-
pany’s ordinary business. Contractual obligations amounted
NOTE 5.1
CONTINGENT ASSETS
AND LIABILITIES
to DKK 794 million at 31 December 2022 (2021: DKK 491
million) and relate mainly to commercial collaborations and
IT contracts. Apart from the liabilities already recognised in
the balance sheet, the company does not expect to incur any
significant financial losses as a result of these contracts.
Other contingent liabilities
The Parent Company has issued guarantees totalling DKK 270
million at 31 December 2022 in favour of certain subsidiaries
related to securing local credit lines and rental agreements
(2021: DKK 508 million).
The Parent Company is jointly taxed with Danish subsidiaries.
The company is jointly and severally liable with other jointly
taxed Danish companies within the Group for income tax
and withholding taxes due on or after 1 July 2012 in the joint
taxation.
Contingent assets
See note 5.1 Contingent assets and liabilities to the con-
solidated financial statements.
ANNUAL REPORT 2022 PARENT COMPANY
TRANSACTIONS ENTERED INTO WITH RELATED PARTIES
DKK million 2022 2021
Income statement:
Sales to subsidiaries 16,679 13,577
Purchases from subsidiaries -6,739 -5,977
Recharges from subsidiaries -737 -589
Gain from intra-group share transfer 5,917 -
Dividends from subsidiaries 2,437 2,848
Finance income 300 31
Finance costs -2 -11
Total 17,855 9,880
Balance sheet:
Loans to subsidiaries, non-current 5,035 878
Trade receivables from subsidiaries 1,032 5,418
Loans to subsidiaries, current 2,658 1,411
Right-of-return assets 258 216
Payables to subsidiaries -1,455 -4,937
Refund liabilities -1,941 -1,674
Total 5,587 1,312
Development in impairment losses on trade receivables
Impairment at 1 January 39 24
Additions 5 15
Impairment at 31 December 44 39
NOTE 5.3
FEES TO INDEPENDENT
AUDITOR
NOTE 5.2
RELATED PARTIES
In addition to the related parties disclosed in note 5.2 Related parties to the consolidated
financial statements, related parties of Pandora A/S include the subsidiaries listed in note 5.5
Companies in the Pandora Group
to the consolidated financial statements.
DKK million 2022 2021
Fee for statutory audit 3 3
Other assurance engagements 1 1
Total audit related services 4 4
Other services 1 -
Total non-audit services 1 -
Total fees to independent auditor 5 4
The costs are recognised in the income statement as
administrative expenses.
ANNUAL REPORT 2022 PARENT COMPANY
CVR no. 28505116
Phone +45 3672 0044