Pandora's DKK 4.0 Billion Share Buyback: A Strategic Move for Shareholder Value

On February 7, 2024, Pandora A/S, the world's largest jewellery brand, announced a new share buyback programme worth DKK 4.0 billion. This strategic move aims to reduce the company's share capital and meet obligations arising from company incentive programmes. The programme, executed in accordance with Regulation (EU) No 596/2014, is set to run from February 8, 2024, until January 31, 2025, both days inclusive.

The share buyback programme is divided into three tranches, with the first two concluding on June 11, 2024, and September 27, 2024, respectively. The third tranche, valued at DKK 1.4 billion, is set to commence on September 30, 2024, and finish no later than January 31, 2025. Pandora has appointed BNP as the sole lead manager for this final tranche.

As of late September 2024, Pandora has repurchased a significant number of shares under the programme, with the following transactions made:

| Number of Shares | Average Purchase Price (DKK) | Transaction Value (DKK) |
| --- | --- | --- |
| 2,293,235 | 2,519,887,963 | 5,772,718,814 |
| 12,034 | 1,139.42 | 13,711,749 |
| 17,735 | 1,158.15 | 20,539,852 |
| 27,508 | 1,134.81 | 31,216,389 |
| 8,000 | 1,112.97 | 8,903,790 |
| 5,168 | 1,110.70 | 5,740,074 |
| Total | | 5,836,488,848 |

With these transactions, Pandora owns a total of 2,247,981 treasury shares, corresponding to 2.7% of the Company's share capital.

The share buyback programme has several strategic objectives:

1. Reducing share capital: By repurchasing shares, Pandora aims to decrease its share capital, which can lead to a higher earnings per share (EPS) for remaining shareholders. This can potentially increase the company's stock price and make it more attractive to investors.
2. Meeting obligations from incentive programmes: The share buyback programme also helps Pandora fulfill its commitments to employee incentive plans. By repurchasing shares, the company can meet its obligations to employees and executives, ensuring that they receive the promised shares or cash equivalents.
3. Enhancing shareholder value: By reducing the number of outstanding shares, Pandora can increase the value of each share, benefiting existing shareholders. This can also make the company more appealing to new investors, potentially leading to increased investment and further growth.
4. Signaling confidence in the company's future: The decision to repurchase shares can be seen as a vote of confidence in Pandora's future prospects. By investing in its own shares, the company is demonstrating its belief in its ability to generate sufficient cash flows to support both its operations and shareholder returns.

In conclusion, Pandora's DKK 4.0 billion share buyback programme is a strategic move that aligns with the company's long-term growth plans. By reducing its share capital, meeting incentive programme obligations, enhancing shareholder value, and signaling confidence in its future, Pandora is positioning itself for continued success in the global jewellery market.