Pandora A/S
PANDORA CLOSES TRANSFER PRICING TAX AUDIT FOR 2009 TO 2014 WITH DANISH TAX AUTHORITIES

Pandora A/S 

07.05.2015 08:20

Dissemination of a Adhoc News, transmitted by DGAP - a service of EQS Group
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The issuer is solely responsible for the content of this announcement.

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PANDORA announces that the Company has made a settlement with the Danish Tax
Authorities ('SKAT') regarding a transfer pricing audit for the period 2009 to
2014. SKAT and PANDORA did not agree on the applicable pricing methodology
within the Group. Following a dialogue with SKAT, PANDORA has decided to make a
settlement whereby, PANDORA will recognise a higher proportion of the Group's
profit in Denmark. 

According to the settlement, PANDORA will pay a sum of DKK 995 million to SKAT
covering tax payments and interest for the 6 year period. 

Excluding the additional tax payments, PANDORA's reported tax rate for the
financial year 2015 is expected to be around 22% compared to previously guided
'around 20%'. For the financial year 2016, PANDORA's reported tax rate is
expected to be around 21%. 

The settlement will have no impact on the ongoing share buyback programme or
any planned capital expenditures. 

ACCOUNTING IMPLICATIONS
PANDORA will pay the full amount in 2015, which will have a cash flow impact of
DKK 995 million. 

PANDORA accrues for estimated tax expenses, and has as of 31 December 2014 made
accruals for DKK 610 million related to these specific payments. The additional
DKK 364 million will impact income tax expenses for 2015 in the profit and loss
statement with a further financial item of DKK 21 million. 

FINANCIAL GUIDANCE FOR 2015
Beside the effect on the effective tax rate, the content of this release will
have no impact on PANDORA's outlook for 2015. Revenue is expected to be more
than DKK 14 billion. The EBITDA margin is expected to be approximately 37% and
CAPEX for the year is expected to be approximately DKK 800 million. Effective
tax rate is expected to be approximately 30%, including the additional tax
payments (previously guided approximately 20%). 

ABOUT PANDORA
PANDORA designs, manufactures and markets hand-finished and modern jewellery
made from genuine metals at affordable prices. PANDORA jewellery is sold in
more than 90 countries on six continents through approximately 9,900 points of
sale, including more than 1,400 concept stores. 

Founded in 1982 and headquartered in Copenhagen, Denmark, PANDORA employs more
than 11,400 people worldwide of whom approximately 7,900 are located in
Gemopolis, Thailand, where the company manufactures its jewellery. PANDORA is
publicly listed on the NASDAQ Copenhagen stock exchange in Denmark. In 2014,
PANDORA's total revenue was DKK 11.9 billion (approximately EUR 1.6 billion).
For more information, please visit www.pandoragroup.com. 

CONTACT
For more information, please contact:

INVESTOR RELATIONS           MEDIA RELATIONS               
Morten Eismark               Kristian Lysgaard             
VP Group Investor Relations  Director, Group Communications
Phone +45 3673 8213          Phone +45 4323 1774           
Mobile +45 3045 6719         Mobile +45 2556 8561          
Magnus Thorstholm Jensen                                   
Investor Relations Officer                                 
Phone +45 4323 1739                                        
Mobile +45 3050 4402
News Source: NASDAQ OMX



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Language:     English
Company:      Pandora A/S
              
               
              Denmark
Phone:        
Fax:          
E-mail:       
Internet:     
ISIN:         DK0060252690
WKN:          
 
End of Announcement                             DGAP News-Service
 
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