Dividend policy

 
Capital structure policy and cash distribution

Entering 2021, Pandora’s leverage is 0.5x EBITDA and thereby in the very low end of the capital structure policy. Based on the guidance, Pandora is – everything else equal and in the absence of cash distribution – likely to end 2021 with a leverage close to 0. This is a strong position to be in and would under normal circumstances allow for significant cash distribution to the shareholders in 2021.

Due to the unprecedented situation caused by the pandemic and the elevated uncertainty following this, Pandora will postpone further cash distribution until the pandemic is under sufficient control. Pandora stresses that the capital structure policy is unchanged. While we await a more stable and predictable situation, Pandora will preserve the cash and be ready to distribute it in an accelerated manner later on. In order to prepare for a potential re-initiation of cash distribution later in 2021, Pandora will ask the shareholders at the Annual General Meeting in March 2021 to authorise the Board of Directors to potentially pass one or more resolutions to distribute extraordinary dividends up to a total amount of DKK 15 per share until the next annual general meeting.

Annual Commitment

(DKK billion)

FY 2021
Proposed

FY 2020
Actual

FY 2019
Actual

FY 2018
Actual

FY 2017
Actual

Dividend (ordinary + interim)

-

0.8

1.8

1.9

4.0

Nominal dividend per share, DKK

-

9.0

18.0

18.0

36.0

Share buy-back programme

-

-

2.2

4.0

1.8

Total cash return

-

0.8

4.0

5.9

5.8