CEO'S REVIEW IN STOCKMANN'S ANNUAL GENER

STOCKMANN plc STOCK EXCHANGE RELEASE March 30, 2004, at 16.00

CEO'S REVIEW IN STOCKMANN'S ANNUAL GENERAL MEETING ON MARCH 30, 2004

Stockmann's first-quarter profit on ordinary operations will improve markedly on last year's figure, said Stockmann's CEO Hannu Penttilä in his review at the company's Annual General Meeting in Helsinki on March 30, 2004. First-quarter operating profit will nevertheless fall short of last year's result because the capital gain booked on the disposal of the Tapiola department store property was included in the first-quarter result last year.

In his review of the year at Stockmann's Annual General Meeting in Helsinki on March 30, 2004, CEO Hannu Penttilä observed that the Group will henceforth have only limited possibilities for organic growth in the domestic market. Growth will be sought abroad - in Russia and the Baltic countries. Last year, sales abroad accounted for 11 per cent of aggregate sales. The proportion will rise quickly this year because the Riga

department store will be in operation for its first full year, and in Moscow two new department stores and 2-3 new Zara stores will be opened. Seppälä too is continuing its expansion in Latvia and will open its first stores in Russia as well. Penttilä believes that the Stockmann Group will not have any difficulty reaching its strategic objective of generating at least a third of sales and earnings abroad by 2008.

Penttilä says that the outlook for the Stockmann Group this year and in the near future is promising. The Company has had a very good start to the year, with the department stores and Seppälä performing especially well. The sales trend in March has also been strong and first-quarter profit on ordinary operations will improve markedly on last year's figure. First- quarter operating profit will nevertheless fall short of last year's result because the capital gain booked on the disposal of the Tapiola department store property was included in the first-quarter result last year.

The growth in the Stockmann Group's sales this year is estimated to be at least on a par with 2003 and to top 1.8 billion euros. Stockmann's target is for the Group to post higher profit before extraordinary items in 2004 than it did in 2003.

STOCKMANN plc

Hannu Penttilä CEO

DISTRIBUTION Helsinki Exchanges Principal media





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