Pandora

The shareholders exercise their rights at the Annual General Meeting, which is the supreme governing body of the company. During the Annual General Meeting, among other duties, the shareholders elect the members of the Board of Directors (the Board), approve the Annual Report and adopt any proposed changes to the company's Articles of Association.

Pandora has a two-tier management structure composed of the Board and Executive Management. The Board outlines the overall vision, strategy and objectives of Pandora's business activities, supervises the performance of Executive Management and is responsible for overseeing the execution of Pandora's sustainability strategy, performance and targets. In addition, the Board is responsible for adopting the sustainability-related policies. This includes reviewing sustainability reporting and overseeing performance related to Pandora's strategic sustainability priorities and targets. Members of Executive Management are appointed by the Board. Executive Management is responsible for the day-to-day management and for the execution of Pandora's strategy.

Furthermore, Pandora has an Executive Leadership Team (the ELT), comprised of one woman and seven men, representing seven different nationalities. The team members are responsible for the day-to-day operations of their respective business areas and serve as a part of Pandora's overall leadership. Selected ELT members are also part of Pandora's Sustainability Board.

BOARD OF DIRECTORS

Composition The Board is comprised of seven members, all elected at the Annual General Meeting for a one-year term. Currently, the Board consists of four women and three men, representing five different nationalities. In accordance with section 139c of the Danish Companies Act, this is considered equal gender representation on the Board.

In accordance with the Danish Recommendations on Corporate Governance, 86% of the Board members are regarded as independent. Christian Frigast, due to his more than 12-year tenure on the Board, no longer maintains independence status. The composition of the Board is intended to ensure relevant and complementary competencies and diversity. This approach is instrumental in supporting Pandora's strategic goals and vision, while ensuring well-considered, diverse and judicious decision-making.

Board evaluation Each year, the Board conducts a board review focusing on its effectiveness and skills. The ideal mix of skills and experience required of Board members includes:

• Board experience • Retail • Executive management • Digitalisation • Sectoral experience • Sustainability • Marketing and brand • Finance • Governance

An external assessment of the Board's skills and effectiveness is conducted every three years to ensure objectivity and benchmarking. In 2024, the board effectiveness review was conducted with the support of an external provider to ensure objectivity and benchmarking. The results identified that the Board continues to be well-established and well-functioning, supported by a strong belief in the strategy and effectiveness in collaboration with the committees and Executive Management.

The Board held nine meetings in 2024. Its primary focus was to navigate Pandora carefully through uncertain macro-economic circumstances, including the implications from increased commodity prices and complex socio-political environments. Additionally, the Board ensured Pandora remains aligned with the next phase of the Phoenix strategy, announced during Pandora's Capital Markets Day in October 2023, which focuses on transforming the company into a full jewellery brand. Furthermore, the Board has overseen the integration of sustainability into relevant processes in Pandora, ensuring alignment with our strategic priorities and the sustainability targets.

Sustainability integration and governance Sustainability is deeply integrated in our strategic direction and how we conduct business. It is governed at the highest level by the Board, which approves Pandora's climate transition plan. Responsibility for the execution of the strategic sustainability priorities is delegated to Pandora's Sustainability Board. The Sustainability Board is responsible for the strategic priorities and integrating sustainability into business decisions and processes within their respective functions. Reporting to the ELT, and in some matters directly to the Board, the Sustainability Board is chaired by Pandora's Chief HR Officer and consists of nine senior leaders, including ELT members.

Two subject-specific committees (the Responsible Sourcing Committee and the Responsible Marketing Committee) and two task forces (Low Carbon & Nature Task Force and Corporate Sustainability Reporting Directive (CSRD) Task Force) oversee key sustainability areas on responsible sourcing, responsible marketing, our work on environmental impacts, CSRD implementation and compliance within the company. They convene regularly and report to the Sustainability Board. In 2024, we updated our double materiality assessment, as part of the requirements of the CSRD. The double materiality results were approved by Pandora's Sustainability Board, with the Board providing oversight to ensure alignment with strategic goals.

To support the Board in its duties, the Audit, Nomination and Remuneration Committees have been established. Each committee is responsible for carrying out various preparatory tasks within the Board's key areas of responsibility.

The Remuneration Committee is responsible for incentive schemes and remuneration, including those related to sustainability. More information can be found in the Remuneration Report.

RISK MANAGEMENT MATRIX

The Board of Directors (the Board) reviews and discusses key risks that could threaten Pandora's business model or the future performance, solvency or liquidity.

SUSTAINABILITY RISKS ASSESSMENT Sustainability risks are assessed on a quarterly basis and insights from the 2024 double materiality assessment have been incorporated into the enterprise risk management calibration process and reporting. We do not consider sustainability risks to be among our top risks. As part of our climate risk assessment, we evaluate risks across various criteria, with key risks reviewed by the Board. In 2022, we conducted a scenario analysis aligned with our risk management matrix to explore climate risks and opportunities across our value chain, identifying areas crucial to transitioning to low-carbon operations. Insights from an on-site risk assessment conducted at the end of 2024 at our crafting sites in Thailand, will enable us to proactively implement tangible recommendations to mitigate potential future supply chain disruptions caused by climate change.

INTERNAL CONTROL AND RISK MANAGEMENT The Board and Executive Management are responsible for Pandora's internal control and risk management systems in relation to the financial and sustainability reporting process.

Control environment The Group's internal control framework identifies key processes, inherent risks and control procedures to reduce and mitigate financial and sustainability risks and ensure reliable financial and sustainability reporting. The Audit Committee assists the Board in supervising the financial and sustainability 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 and sustainability 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. In 2024, the head of the IACC function reported to Pandora's Senior Vice President, Corporate Finance, with a dotted reporting line to the Audit Committee Chair. In 2025, the reporting line will be changed to the Chief Financial Officer, still with a dotted reporting line to the Audit Committee Chair.

Risk assessment The Board and Executive Management assess risks on an ongoing basis, including risks related to the financial and sustainability reporting, and they assess measures to manage, reduce or eliminate identified risks. The IACC function assists Executive Management and the Audit Committee in identifying and monitoring financial and sustainability risks in the reporting process. The Audit Committee frequently reviews selected high-risk areas, including significant accounting estimates and material changes to accounting policies. Pandora's Global Risk & Insurance function facilitates identification and monitoring of material enterprise risks and validates measurements taken to reduce the risks to an acceptable level.

Control activities The financial and sustainability 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 controlling function is continuously trained in new accounting, sustainability and reporting requirements and monitors compliance with relevant legislation and regulations on an ongoing basis. The financial and sustainability reporting process is dependent on the Group's IT systems. Any weaknesses in system controls and related risks to the financial and sustainability reporting are mitigated by manual controls. Each entity and Global Business Services assess their control environment through a self-assessment of the effectiveness of the implemented controls, including those related to sustainability. The sustainability processes continue to evolve alongside the maturation of the guidance of the requirements in this area. 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 continuously monitored, tested and documented. 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 and sustainability 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 Committee meetings and provides regular status updates on the control environment. Furthermore, the head of IACC has regular meetings with the Chief Financial Officer and meetings with the Audit Committee without the presence of the management team. This setup 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 and sustainability 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.

BUSINESS MODEL

Pandora is one of the world's most valuable brands, owning the space of jewellery with a meaning. Our unique business model builds on the Pandora brand and our in-house excellence. This translates into a fully integrated ecosystem, with both crafting and distribution at an unparalleled scale. With a strong commitment to sustainability, we deliver industry-leading growth and profitability while minimising our environmental footprint and supporting the communities we touch. Acknowledging both positive and negative impacts, as well as risks and opportunities, we have conducted a double materiality assessment, detailed on page 50.

KEY RESOURCES APPLIED

• An average of 37,000 employees globally
• State-of-the-art crafting facilities, powered by 100% renewable electricity
• Recycled silver and gold and lab-grown diamonds
• Water, energy and other raw materials

VALUE CREATED

• Safe and engaged workplace with an employee Net Promoter Score (eNPS) that puts us in the top 5% in the consumer sector globally
• 865 million customer visits to our stores and online channels, with more than 3 pieces sold every second
• DKK 1.7 billion paid in corporate income taxes
• DKK 5.5 billion in dividends and share buybacks to shareholders

OUR OPERATIONS

INNOVATIVE DESIGN World-class creative design process with built-in consumer testing

RESPONSIBLE SOURCING Materials sourced in a responsible, transparent and traceable way

HIGH-QUALITY JEWELLERY CRAFTING Artistry and craftsmanship unmatched in the industry

GLOBAL BRAND AND MARKETING Top brand equity in our key markets, guided by data and analytics

PACKAGING AND DISTRIBUTION Serving customers and stores by delivering the jewellery safely and on time

OMNICHANNEL RETAIL Personalised experiences for consumers, shoppers and brand lovers

PRODUCT REUSE AND REPAIR Remelt of returning surplus and faulty products and minor repair services

OUR SEGMENTS

The Core segment represents the charms and carriers and is covering the collections Pandora Moments, Pandora ME and Collabs. In 2024, Core made up 74% of revenue and delivered stable like-for-like growth of 2%.

Pandora Moments, which has been established as a key Pandora icon over two decades, is still by far the largest collection and contributes to growth with solid like-for-like growth of 3%. It remains an ever-evolving canvas for personal expression, resonating with customers who seek to capture and celebrate life's precious moments through our iconic charms.

Pandora ME has found a place in the market as a symbol of individuality and self-expression. It makes up 3% of our revenue, with another year of strong double-digit like-for-like growth of 13%.

Collabs are closely tied to storytelling, allowing customers to express their identities through iconic partnerships. In 2024, we launched an exciting collaboration with Netflix, beginning with designs inspired by the popular show Stranger Things. Collabs contributed 8% to our revenue, with a like-for-like decline of -9%, as 2023's "Disney 100" collection, celebrating Disney's centenary, had driven a strong surge in interest.

Fuel with more is made up of the collections Pandora Timeless, Pandora Signature, Pandora Lab-Grown Diamonds and the latest collection launched globally in the spring of 2024, PANDORA ESSENCE. Fuel with more made up 26% of revenue, up from 22% in 2023, as a result of strong like-for-like growth of 22%.

Pandora Timeless is by far the largest collection within Fuel with more, making up 20% of revenue. The momentum from 2023 was carried into 2024, underscoring that we are on the right path to be perceived as a full jewellery brand. Pandora Timeless generated like-for-like growth of 22%, striking a chord with consumers looking for elegance and craftmanship. Pandora Signature represented 3% of our revenue, and whilst the performance was impacted by a cleanup of the assortment, the collection continues to serve as an important offering for our customers.

The new PANDORA ESSENCE collection, which was launched globally in Q2 2024, was off to a solid start and already makes up 2% of revenue. The collection expands into the aesthetic space of organic, fluid and natural jewellery design, which constitutes 17% of the global jewellery market, and draws inspiration from the beauty and simplicity of nature's organic shapes.

Our Pandora Lab-Grown Diamonds collection continues to gain ground, with like-for-like growth of 43% in 2024. The collection has also had a notable positive halo effect on the Pandora brand, increasing consideration to purchase jewellery from any of the collections. We believe the demand for lab-grown diamonds will keep gaining traction, and to facilitate this we added our new microfine diamonds range towards the end of the year. Our goal is to become the most desirable brand in the category while making diamonds accessible to everyone.

OUR MARKETS

The US remains our largest market in terms of revenue, with a share of business of 31% in 2024, yet our market share is just around 2%. Despite a turbulent 2024 for US consumers, like-for-like growth was strong, driven by the brand momentum, and was further enhanced by the BE LOVE campaign and the positive halo effect from Pandora Lab-Grown Diamonds. This translated into like-for-like growth of 8% and organic growth of 14%, as network expansion further fuelled the growth.

Our key markets in Europe delivered like-for-like growth of 4% and a combined share of business of 31%. Growth here was predominantly driven by Germany, which delivered very strong like-for-like growth of 45%, coming into 2024 with strong brand momentum that carried on throughout the year. This momentum was supported by the always-on media model and the BE LOVE campaign, that resonates very well with the consumers. France delivered like-for-like growth of -5% and organic growth of 2%.

In the UK, like-for-like growth ended at -2% with organic growth at 0%, in a market which is impacted by dampened consumer sentiment. In Italy, we delivered like-for-like growth of -7% and organic growth of -3%. Pandora's brand metrics are moving in the right direction for France, the UK and Italy, although this is yet to translate into higher in-store traffic in a still tough consumer environment.

Australia was impacted by low consumer sentiment and subdued purchasing power with like-for-like growth ending at -4%.

China delivered like-for-like growth of -21%. The Chinese economy is still navigating its recovery from the pandemic's aftermath, with significant impact on our business in China. In 2023, following the lifting of restrictions, we initiated a restaging of the brand focusing on Shanghai. While performance in Shanghai is better than in the rest of mainland China, the demand generation is not yet sufficient to establish an attractive business model. We remain committed to build the brand in China and are currently considering the next steps on the journey. During 2025, the store network will be optimised with an anticipated closure of at least 50 stores. The closures has minimal impact on the growth from network expansion in 2025.

In Rest of Pandora, Pandora continued to demonstrate the broad-based appeal of the brand across numerous geographies where brand penetration is still building with a long runway ahead. Like-for-like growth was strong at double-digit levels of 13%, which reflected broad-based growth with strong contributions from many markets. Spain, Canada, Mexico and Poland are the biggest markets in this segment and delivered a combined like-for-like growth of 8%. Overall, Rest of Pandora ended 2024 with a revenue of DKK 10.6 billion.

SUSTAINABILITY — A CORNERSTONE OF OUR STRATEGY Sustainability is integral to Pandora's operations and remains a cornerstone of the Phoenix strategy. Our approach includes setting some of the industry's most ambitious sustainability targets to lower environmental impact while driving positive outcomes for the people and communities we engage with.

Our three strategic sustainability priorities – low-carbon business, circular innovation and fostering an inclusive, diverse and fair culture – remained central to our 2024 performance, driving our actions and underscoring our commitment to responsible practices across the value chain.

This report shows how our sustainability initiatives support the Phoenix strategy. The Sustainability Statements detail impacts, risks and opportunities (IROs) and address our material sustainability matters identified through our double materiality assessment, which informs our disclosures in alignment with the Danish Financial Statements Act.

Note: In 2024, we have reassessed Pandora's calculation methodology and data for Scope 3 based on updated knowledge. This led to adjustments in total emissions (tonnes CO2e), with decreases of 44,951 in 2020 (-15%), 49,524 in 2021 (-15%), and 16,340 in 2022 (-5%), as well as an increase of 8,423 in 2023 (+3%).

Substances of concern and substances of very high concern

Pandora has not disclosed quantitative data on the total amounts of substances of concern (SoC) or substances of very high concern (SVHC) generated, used, or procured in tonnes for the reporting period.

Chemical management approach

Pandora's chemical management programme ensures adherence to global standards and compliance with local regulatory requirements, from raw materials to finished goods. The company is certified against ISO IEC 17025 (testing and calibration laboratories) and is the first company in Thailand, and one of the few globally within the jewellery manufacturing industry, to achieve this certification.

The chemical management approach is organised around three focus areas:

• Safer input: Safety data sheets are required, passed test certificates are obtained, and records of all substances are maintained. Non-compliant substances are discontinued after careful review.
• Safer process: Continuous progress is driven across four targets: zero accidents, zero health risks, zero waste and zero non-compliance, governed by ISO 45001 and 14001 certifications.
• Safer output: Wastewater is treated on-site before distribution to industrial treatment, with quality regularly monitored to meet or exceed local legal requirements. Hazardous waste is treated according to local legal requirements, including zero landfill.

REACH compliance and restricted substances

To help ensure regulatory compliance, Pandora applies comprehensive requirements for controlling and monitoring hazardous substances. The company's chemical requirements are based on its Restricted Substances List (RSL), which comprises substances restricted in usage pertaining to products and raw materials. The RSL is monitored by senior management in Crafting & Supply Quality and is aligned with regulatory requirements, including REACH (European Regulation (EC) No. 1907/2006 and its amendments REACH Annex XVII Item 63), and provides clear measures for chemical safeguards and workplace safety.

These safeguards extend beyond Pandora throughout the value chain and are communicated to suppliers as part of supplier contracts and sourcing documents. Suppliers must provide safety data for all substances, and test certificates are required as evidence of compliance. The health and safety impacts of products are continuously governed by the ISO 9001 certification of crafting facilities. As in previous years, there were no reported critical incidents of non-compliance concerning the health and safety impacts of products in 2024.

Future developments

Pandora continues to work in accordance with its "Together Towards Zero" campaign, focusing on zero accidents culture, zero health risks, zero waste and zero non-compliance. In 2025, the company will explore how to set targets to advance its chemical management programme. In 2024, Pandora updated its Global Environmental Policy, which guides work with all environmental topics, including chemicals, and serves as a foundation to develop future guidelines and frameworks.

Resource outflows

Circular Jewellery Metrics (2024)

• 100% recycled silver and gold: As of August 2024, all Pandora jewellery is crafted using 100% recycled silver and gold sourced from certified, responsible refiners. This achievement reduces dependency on newly mined crafting metals by almost three-quarters by volume.

• 100% man-made stones: All stones used in Pandora jewellery are man-made.

• Share of silver in purchased product materials: 67% (2023: 68%)

Product Durability & Design

Pandora's jewellery is designed to be high-quality and durable, crafted with care and attention to detail. The company emphasizes craftsmanship that blends centuries-old techniques with modern production methods.

Packaging Materials

• Consumer-facing packaging is FSC®-certified
• The company is exploring opportunities to switch to more sustainable raw materials with lower environmental impact for packaging and visual merchandising materials

Lab-Grown Diamonds

Pandora continues to expand its lab-grown diamonds collection, demonstrating how innovation can replicate nature while reducing environmental impact compared to mined diamonds.

Circularity Strategy

Circularity is fundamental to Pandora's approach to becoming a low-carbon business. The company's "Advancing Circularity" strategic pillar focuses on circularity in products and services across the value chain, though specific numerical targets for product repairability or take-back programs are not disclosed in this report.

Waste

Waste Management Approach

Pandora applies a comprehensive approach to waste management guided by its "Together Towards Zero" campaign, which includes four focus areas:

1. Zero accidents culture
2. Zero health risks
3. Zero waste
4. Zero non-compliance

This campaign is designed and run by the Safety, Health & Environment leadership team and employees at Pandora's crafting facilities in Thailand, governed by ISO 45001 and 14001 certifications.

Hazardous Waste

Hazardous waste is treated according to local legal requirements, including zero landfill practices. For some solid waste types, Pandora partners with waste disposal suppliers to find ways to reuse materials.

Wastewater

Wastewater is treated on-site before distribution to industrial treatment facilities. Wastewater quality is regularly monitored to ensure it meets or exceeds local legal requirements.

Packaging Waste

Packaging materials, including plastic and paper, contribute to waste in the downstream value chain. These impacts are identified as potentially harmful to the environment and can lead to financial and reputational risks if unaddressed. The company is working to map procurement of point-of-sale materials and store fixtures and furniture to address environmental impacts.

Scope 3 Emissions from Waste

Category 5 (Waste generated in operations) accounted for 5,790 tonnes CO2e in 2024 (2023: 6,741 tonnes CO2e), representing a 14% decrease.

Note: While waste management processes and policies are described, the report does not provide a comprehensive quantitative breakdown of total waste generated by type (hazardous vs. non-hazardous) or by disposal method (recycled, landfilled, incinerated) in tonnes for 2024.

WHISTLEBLOWER HOTLINE We are committed to fostering a transparent and supportive environment through our whistleblower programme. Our Whistleblower Policy, aligned with the Danish Whistleblower Act and the EU Whistleblower Directive, provides a clear and secure process for employees to confidentially raise concerns.

The policy outlines a clear process for addressing issues raised through our whistleblower channels, including our dedicated hotline. Reports can be submitted confidentially through the EQS system or a designated whistleblower inbox. IACC reviews each case reported through the EQS system and directs it to the appropriate team. In certain cases, external consultants are engaged due to time constraints or data-sharing regulations.

In 2024, we took further steps to build awareness around our whistleblower programme. As part of our ongoing Speak Up! campaign, we launched mandatory whistleblower e-learning to ensure all employees are informed about the hotline and their right to safe, anonymous reporting. The e-learning aims to empower employees with knowledge of the Whistleblower Policy and assure them of fair and protected case handling. Speak Up! posters are displayed in our offices, crafting facilities, distribution centres and stores globally, reinforcing our commitment to a transparent culture.

In 2024, 233 cases were reported through the whistleblower platform, covering issues such as harassment, discrimination, racism and minor grievances. None of the cases had a severe impact on our business operations or a material financial impact.

Pandora also offers employees various social protections and promotes work-life balance. We provide safeguards against income loss due to major life events, including sickness, unemployment, workplace injuries and acquired disabilities, parental leave and retirement. Coverage for social protections varies across Panama, Singapore, South Africa and the US due to differences in local regulations and government programmes.

Based on the narrative text, Pandora recorded 114 work-related accidents with absence, resulting in a lost-time injury frequency rate of 1.72, compared to 1.38 in 2023. However, no specific tabular data is presented for health and safety metrics in the extracted report text.