STOCKMANN plc QUARTERLY REPORT January 1 - March 31, 2007

The Stockmann Group's sales from continuing operations grew by 16 per cent to EUR 371.7 million (EUR 320.9 million in 2006). Profit from continuing operations before taxes grew substantially and was EUR 8.0 million (EUR 1.1 million). Owing to the effect of other operating income that was booked in the comparison period, the entire Group's profit before taxes decreased by EUR 0.7 million in the report period. Earnings per share were EUR 0.11. The earnings estimate for 2007 is unchanged.

Key figures Q1/2007 Q1/2006 2006 Continuing operations

SalesEUR mill.371.7320.91 477.8
RevenueEUR mill.311.4269.41 239.6
Operating profitEUR mill.8.20.899.9
Profit before taxesEUR mill.8.01.199.4
Earnings per shareEUR0.110.021.39
Group total
Equity per shareEUR9.148.4010.34
Cash flow from operatingEUR mill.-38.6-31.7117.4
activities
Gearingper cent19.718.4-6.3
Equity ratioper cent63.064.174.5
Weighted average number ofthousands55 35354 07754 310
shares Return on capital employed, per cent 22.0 21.6 22.9 rolling 12 months

Financial reporting

Stockmann adopted International Financial Reporting Standards (IFRS) on January 1, 2005. The accounting policies and calculation methods applied in the Quarterly Report are the same as those in the 2006 financial statements. In the financial reporting for 2006, Stockmann Auto and the Zara business in Russia are treated as discontinued operations in accordance with IFRS 5. The figures are unaudited.

Sales and result

Stockmann's consolidated sales, eliminating the Stockmann Auto business for the comparison period, were up 15.8 per cent. Net of the elimination, sales decreased by 6.1 per cent to EUR 371.7 million (EUR 395.7 million). The exceptionally strong sales growth was due to running the Department Store Division's Crazy Days campaign at the department stores in Finland entirely in March. The Group's sales abroad amounted to EUR 90.3 million, an increase of 15 per cent. Sales from continuing operations in Finland grew by 16.0 per cent to EUR 281.4 million. International operations accounted for an increased share of consolidated sales, rising from 20 per cent to 24 per cent. Revenue was EUR 311.4 million, as against EUR 330.5 million in the comparison period.

There was no other operating income. In the comparison period, other operating income of EUR 7.4 million came from the capital gain on the disposal of Stockmann Auto.

The gross margin on the Group's operations rose by EUR 10.5 million to EUR 119.8 million and the relative gross margin was 38.5 per cent (33.1 per cent).

The relative gross margin improved at all the business units. The Group's relative gross margin was furthermore improved by the discontinuance of low-margin vehicle sales as from the beginning of March 2006. Operating expenses increased by EUR 2.6 million and depreciation by EUR 0.8 million. Because of other operating income booked in the comparison period, consolidated operating profit diminished by EUR 0.3 million to EUR 8.2 million. Operating profit from continuing operations grew by EUR 7.4 million to EUR 8.2 million (EUR 0.8 million). The growth in operating profit from continuing operations was affected significantly by timing the Crazy Days campaign differently from the comparison period.

Net financial income and expenses decreased by EUR 0.4 million and were EUR 0.2 million negative (EUR 0.2 million).

Profit before taxes was EUR 8.0 million, down EUR 0.7 million on the figure a year earlier. Profit from continuing operations before taxes grew by EUR 6.9 million. Direct taxes were EUR 1.9 million, an increase of EUR 1.6 million on the previous year. In the comparison period, earnings included EUR 7.4 million of tax-free capital gains. Net profit for the report period was EUR 6.1 million, compared with EUR 8.4 million a year earlier. Profit from continuing operations in the period increased by EUR 5.3 million.

Earnings per share were EUR 0.11 (EUR 0.16) and diluted for options they were EUR 0.11 (EUR 0.15). Equity per share was EUR 9.14 (EUR 8.40).

Sales and earnings trend by business segment

The Department Store Division's sales grew by 19 per cent to EUR 281.2 million. Sales in Finland were up 22 per cent. Sales in Finland were increased substantially by running the Crazy Days campaign entirely in March. International Operations' sales were increased by the good like- for-like retail performance by the department stores in Russia and the Baltic countries, a fourth department store that was opened in Moscow in mid-February as well as the new Bestseller stores. At the beginning of the report period, problems were encountered in importing goods to Russia, but

they were resolved towards the end of the report period.The problems led
to a momentary shortage of goods, which slowed down sales growth.Sales
by International Operations nonetheless grew by 12 per cent, and its share of the division's sales was 25 per cent (26 per cent). The relative share which International Operations occupy in the Department Store Division's sales, decreased in the first quarter because the Crazy Days campaign was not run at the department stores abroad until April. The Department Store Division's operating result improved by EUR 7.9 million and was EUR 7.8 million (a loss of EUR 0.1 million). The trend in earnings from operations in Finland was very profitable in the first quarter, mainly owing to the effect of timing the Crazy Days campaign. Earnings from International Operations were burdened by the start-up costs of the department store opened in Moscow in February as well as by the new Bestseller stores. On the other hand, sales and earnings at the department stores in Estonia and Latvia were on an upward curve.

Hobby Hall reported sales growth of 6 per cent to EUR 55.6 million (EUR 52.6 million). Sales grew in both Finland and the Baltic countries. Online sales continued to grow buoyantly, accounting for 53 per cent of Hobby Hall's distance retailing sales in Finland (44 per cent). In the Baltic countries too, online sales showed strong growth. Thanks to the increase in the relative gross margin and effective cost management, Hobby Hall's operating profit improved by EUR 0.5 million and was EUR 1.5 million (EUR 1.0 million).

Seppälä's sales increased by 7 per cent on the same period of last year and were EUR 34.6 million. Sales grew strongly in Russia and the Baltic countries, where they were boosted by the new stores that were opened towards the end of 2006 and at the beginning of 2007 as well as by the good like-for-like sales trend. Sales abroad grew by 42 per cent and their share of Seppälä's total sales rose to 27 per cent (21 per cent). The relative gross margin improved, but fixed costs and depreciation also increased because of the heavy investments in opening new stores. Seppälä's operating profit in the report period was on a par with the comparison period, or EUR 0.8 million.

Financing and capital employed

Liquid assets amounted to EUR 23.8 million at the end of the report period, as against EUR 14.5 million a year earlier and EUR 59.2 million at the end of 2006.

Interest-bearing liabilities at the end of March were EUR 124.1 million (EUR 97.9 million), of which EUR 43.4 million consisted of long-term borrowings (EUR 13.4 million). EUR 20.0 million of new long-term borrowings was drawn down during the report period. Capital expenditures amounted to EUR 33.2 million. Net working capital amounted to EUR 244.6 million at the end of March, as against EUR 254.9 million a year earlier and EUR 194.5 million at the end of 2006. The dividend of EUR 72.1 million for the 2006 financial year, which was declared by a resolution of the Annual General Meeting on March 20, 2007, was paid out on March 30. Subscriptions made by exercising the share options for 2000 added EUR 3.1 million to shareholders' equity. The equity ratio was 63.0 per cent at the end of March (64.1 per cent). The equity ratio at the end of 2006 was 74.5 per cent. Gearing was 19.7 per cent at the end of March (18.4 per cent). At the end of 2006, gearing was 6.3 per cent negative.

The return on capital employed over the past 12 months was 22.0 per cent (22.9 per cent at the end of 2006). The Group's capital employed increased by EUR 81.3 million from March of the previous year and stood at EUR 633.6 million towards the end of the report period (EUR 595.0 million at the end of 2006).

Capital expenditures and current projects

Capital expenditures during the report period totalled EUR 33.2 million (EUR 14.9 million).

The construction works for the major enlargement and transformation project for the department store in the centre of Helsinki are continuing. The project involves expanding the department store's commercial premises by about 10 000 square metres by converting existing premises to commercial use and by building new retail space. In addition, completely new goods handling, servicing and customer parking areas will be built. After the enlargement the Helsinki department store will have a total of about 50 000 square metres of retail space. The total cost estimate for the project is approximately EUR 145 million. The works will be carried out stage by stage and are estimated to reach completion in 2010. During the report period, the project required an investment of about EUR 11.4 million.

A new Stockmann Beauty store was opened in Joensuu in February. The fifteenth store in the Stockmann Beauty chain will be opened in Rovaniemi in the autumn.

In February 2007, the Department Store Division opened a fourth department store in Moscow, in the Mega Shopping Centre on the south-east side of town. The department store has over 10 000 square metres of retail space. Stockmann's portion of the total costs of the department store, which was built in leased premises, were EUR 16.5 million, of which EUR 5.8 million was an outlay in the report period. Operations have started up according to plan.

Four new Bestseller stores were opened in Russia in the report period: in St Petersburg, Moscow, Kazan and Samara. Stockmann now has a total of 15 Bestseller stores in Russia. The sixth Bestseller store in St Petersburg will be opened towards the end of April. Later this year, a second store will be opened in Samara, as well as one store each in Rostov-on-Don and Novosibirsk.

The first two Stockmann Nike stores were opened in St Petersburg in February. Towards the end of the year, stores will be opened in Rostov-on- Don, Nizhny Novgorod, Novosibirsk and Samara.

In 2006 Stockmann purchased a 10 000-odd square metre commercial plot on Nevsky Prospect, St Petersburg's high street. The plot is located next to the Vosstaniya Square underground station, in the immediate vicinity of Moscow Station. On this plot, Stockmann will erect the Nevsky Centre shopping centre that will have about 100 000 square metres of gross floor space, of which about 50 000 square metres will be store and office space. A full-scale Stockmann department store with about 20 000 square metres of retail space has been planned for the shopping centre, along with other retail stores, office premises and an underground car park. The department store and shopping centre investment will have a price tag of about EUR 135 million. On the plot for the Nevsky Centre development, the old buildings have been torn down, and the actual construction works are under way. The completion schedule for the building has been specified, and plans call for opening the department store and shopping centre in spring 2009. During the report period, the project required an investment of about EUR 8.2 million.

Stockmann has signed a preliminary agreement on opening Moscow's fifth Stockmann department store in leased premises in the Metropolis Shopping Centre that is being built right near the city's centre. The department store will have a total of about 8 000 square metres of floor space, and Stockmann's investment in the project will be about EUR 12 million. The objective is to open the department store in autumn 2008.

The Department Store Division's capital expenditures totalled EUR 30.4 million.

Hobby Hall's capital expenditures amounted to EUR 0.6 million. Hobby Hall launched distance retailing in Lithuania in February 2007 and will start a similar launch in Russia towards the end of 2007. In April, Hobby Hall introduced a new distance retailing information system that will increase the efficiency of the company's commercial and administrative functions.

Seppälä's capital expenditures came to EUR 2.0 million. Seppälä opened two stores in Russia during the report period. Seppälä's objective is to open further 10-15 stores in Latvia, Lithuania and Russia during 2007 and to start operations in Ukraine. Seppälä is presently upgrading its cash register system, which will become fully operational during the summer.

Other capital expenditures in the report period amounted to EUR 0.2 million.

Annual General Meeting

The Annual General Meeting of Stockmann plc, held on March 20, 2007, passed a resolution to elect seven members to seats on the Board of Directors in accordance with the proposal by the Board's Appointments and Compensation Committee. Following the announcement by Lasse Koivu, Chairman of the Board of Directors, that he will no longer be available as a member of the company's Board of Directors, the Annual General Meeting re-elected Erkki Etola, managing director, Oy Etola Ab; Professor Eva Liljeblom; Kari Niemistö, managing director, Oy Selective Investor Ab; Christoffer Taxell, LL.M.; Carola Teir-Lehtinen, Senior Vice President, Corporate Communications, Fortum Corporation; and Henry Wiklund, managing director, Svenska litteratursällskapet I Finland r.f., to seats on the Board of Directors and elected Kaj-Gustaf Bergh, managing director, Föreningen Konstsamfundet r.f., as a new member for a period of office up to the end of the next Annual General Meeting.

At its organization meeting on March 20, 2007, the Board of Directors elected Christoffer Taxell as its chairman and re-elected Erkki Etola as its vice chairman. The Board of Directors elected Christoffer Taxell chairman of the Appointments and Compensation Committee and re-elected as the other members of the committee Erkki Etola, Eva Liljeblom and Henry Wiklund.

Elected as regular auditors were Jari Härmälä, Authorized Public Accountant, and Henrik Holmbom, Authorized Public Accountant. KPMG Wideri Oy Ab, Authorized Public Accountants, will continue as the deputy auditor.

Under the new Companies Act, a shareholder who has not been registered in the book-entry system does not have the right to participate in a general meeting. Accordingly, the Annual General Meeting resolved to amend Article 12 of the Articles of Association in line with the new Companies Act.

The Annual General Meeting passed a resolution to authorize the Board of Directors to decide on transferring a maximum of 373 134 of the company's own Series B shares (treasury shares) in one or more instalments. The authorization will be valid for five years.

Shares and share capital

The company's market capitalization at the end of March was EUR 1 826.7 million (EUR 1 788.1 million). At the end of 2006 the market capitalization was EUR 2 028.6 million.

Stockmann's share prices underperformed both the OMX Helsinki index and the OMX Helsinki Cap index during the report period. At the end of March the stock exchange price of the Series A share was EUR 32.67, compared with EUR 36.40 at the end of 2006, and the Series B share was selling at EUR 32.73, as against EUR 36.48 at the end of 2006.

The 192 865 Stockmann shares subscribed for in December 2006 with the share options for the year 2000 were entered in the Trade Register on February 28, 2007, and they were admitted to public trading on the Helsinki Stock Exchange together with existing shares on March 1, 2007. As a consequence of the subscriptions the share capital was increased by EUR 385 730. Following the increase, the share capital was EUR 111 709 806. At March 31, 2007, Stockmann had 24 564 243 Series A shares and 31 290 660 Series B shares.

A total of 238 709 shares were subscribed for during January 1-March 30, 2007, with the share options for 2000. Of these, 18 000 shares were entered in the Trade Register on April 10, 2007 and they became available for public trading, together with the existing shares, on Helsinki Stock Exchange on April 11, 2007. As a consequence of the subscriptions the share capital was increased by EUR 36 000. In respect of 220 709 shares, the Board of Directors approved the subscriptions in its meeting on April 26, 2007. The share capital increase resulting from these subscriptions is EUR 441 418. After the above-mentioned increases, the share capital is EUR 112 187 224, with a total of 24 564 243 series A shares and 31 529 369 series B shares in issue.

On the basis of the share options for the year 2000, it was possible to subscribe for a total of 2 500 000 new series B shares, and the options were exercised during the subscription period for a total of 2 499 800 series B shares. The subscription period ended on April 1, 2007.

Stockmann held 373 134 of its own Series B shares (treasury shares) at the end of March 2007. They comprised 0.7 per cent of all the shares outstanding and 0.1 per cent of all the votes. The shares were bought back at a total price of EUR 5.6 million.

The company's Board of Directors does not have valid authorizations to increase the share capital, to float issues of convertible bonds or bonds with warrants, or to buy back its own shares.

Personnel strength

During the report period, the Stockmann Group had an average payroll of 10 308 employees, or 322 more than in the comparison period. The number of employees was raised by the department stores and other stores in Russia and the Baltic countries, but lowered by the disposal of Stockmann Auto at the beginning of March 2006. Stockmann's average number of employees, converted to full-time staff, increased by 149 and was 8 259.

At the end of March 2007, the number of staff working abroad was 3 790 people. At the end of March 2006, Stockmann had 3 064 people working abroad. The proportion of the total personnel who were working abroad was 34 per cent (32 per cent).

Full-year outlook

Major changes have not occurred in the operating environment, nor have operational risks changed materially from what was stated in the Annual Report.

Retail sales are estimated to increase by about 3 per cent in Finland in 2007. The markets in Russia and the Baltic countries are set to continue growing faster than the Finnish market. Stockmann's sales are estimated to come in at about EUR 1.6 billion.

Profit from continuing operations in the second quarter of 2007 will be weaker than in the previous year, because the Crazy Days campaign was run in the first quarter at the department stores in Finland. Profit from continuing operations in the comparison period was furthermore improved by a non-recurring capital gain of EUR 4.7 million.

Earnings in 2006 included substantial non-recurring items as a consequence of the disposal of businesses. In 2007, these will be markedly smaller than in the previous year. The Group is carrying out a number of major investments. The start-up costs of the investments that will become operational during the year will be a factor burdening the result for 2007. Because of the decrease in non-recurring items, the Group's profit before taxes will come in lower than in 2006. The objective is, however, to post improved operating profit from continuing operations compared with 2006.

Balance sheet, Group EUR millions 31.3.07 31.3.06 31.12.06 ASSETS Non-current assets

   Intangible assets5.96.06.3
   Property, plant and equipment376.4271.5352.2
   Available-for-sale investments6.56.06.5
   Deferred tax assets2.53.42.5
Non-current assets, total391.4286.9367.5
Current assets
   Inventories181.3190.3155.0
   Receivables, interest-bearing100.8108.198.9
   Receivables, non interest-bearing111.385.787.0
   Cash and cash equivalents23.814.559.2
Current assets, total417.2398.6400.1
Assets classified as held for sale22.9
Assets, total808.6708.4767.6
EQUITY AND LIABILITIES
Equity509.5454.4571.6
Minority interest0.00.00.0
Equity, total509.5454.4571.6
Non-current liabilities, interest-bearing43.413.423.4
Deferred taxesliabilities26.226.926.2
Current liabilities
Current liabilities, interest-bearing80.784.5
Current liabilities, non interest-bearing148.8126.5146.4
Current liabilities, total229.5211.0146.4
Liabilities associated with assets2.6
classified as held for sale Equity and liabilities, total 808.6 708.4 767.6
Equity ratio, per cent63.064.174.5
Gearing, per cent19.718.4-6.3
Cash flow from operations per share, EUR-0.69-0.582.15
Interest-bearing net debt, EUR mill.-0.5-24.7-134.7
Number of shares at March 31, thousands55.85554.48355.662
Weighted average number of shares,55.35354.07754.310
thousands Weighted average number of shares, 55.879 54.995 55.178 diluted, thousands Market capitalization, EUR mill. 1 826.7 1 788.1 2 028.6

Equity ratio, per cent = 100 x (Equity + minority interest) / Total assets less advance payments received

Gearing, per cent = 100 x Interest-bearing liabilities less cash and cash equivalents / Equity total

Interest-bearing net debt = Interest-bearing liabilities less cash and cash equivalents less interest-bearing liabilities

Market capitalization, EUR mill. = Number of shares multiplied by the quotation for the respective share series on the balance sheet date

Cash flow statement, Group EUR millions 1-3/2007 1-3/2006 1-12/2006 Cash flows from operating activities Net profit for the financial year 6.1 8.4 104.7 Adjustments:

    Deprecation9.18.332.1
    Other operating income-7.4-34.4
    Financial expenses0.60.42.3
    Financial income-0.4-0.6-1.8
    Taxes paid1.90.324.3
    Other adjustments0.8-0.21.7
Changes in working capital:
    Change in trade and other receivables-22.34.61.7
    Change in inventories-26.3-30.15.2
    Change in trade payables and other-2.0-7.911.2
    liabilities
Interest paid-0.2-0.7-2.5
Interest received0.40.61.1
Taxes paid-6.5-7.4-28.2
Net cash from operating activities-38.6-31.7117.4
Cash flows from investing activities
Investments in tangible and intangible-33.1-13.2-112.2
assets Acquisition of subsidiary net cash -12.7 acquired Disposal of subsidiaries less cash at 45.7 105.0 date of disposal
Capital expenditures on other investments-0.5
Cash from tangible assets8.4
Cash from other investments0.10.9
Dividends received0.00.00.1
Net cash used in investing activities-33.132.6-11.0
Cash flows from financing activities
Proceeds from issue of share capital3.80.117.2
Change in short-term loans, increase (+),80.751.2-33.3
decrease (-) Long-term loans, increase (+), decrease (- 20.0 10.0 )
Dividends paid-68.2-56.2-59.5
Net cash used in financing activities36.3-4.8-65.6
Change in cash and cash equivalents-35.3-3.940.8
Cash and cash equivalents at start of the59.218.418.4
perod Cash and cash equivalents at end of the 23.8 14.5 59.2 period

Income statement,1-3/2007
Group, EUR millionsContinuing DiscontinuedTotal
operationsoperations
Revenue311.4311.4
Other operating income
Materials and consumables-191.6-191.6
Wages, salaries and employee benefits-50.8-50.8
expenses
Depreciation-9.1-9.1
Other operating expenses-51.7-51.7
Operating profit8.28.2
Finance income and expenses-0.2-0.2
Profit before tax8.08.0
Income taxes-1.9-1.9
Profit for the period6.16.1
Earnings per share, EUR0.110.11
Earnings per share, diluted, EUR0.110.11
Operating profit, per cent2.62.6
Equity per share, EUR9.14
Return on equity, per cent, moving 1221.2
months Return on capital employed, per cent, 22.0 moving 12 months Average number of employees, converted 8.259 8.259 to full-time staff Investments 33.2 33.2

Income statement,1-3/2006
Group, EUR millionsContinuing DiscontinuedTotal
operationsoperations
Revenue269.461.1330.5
Other operating income0.07.47.4
Materials and consumables-168.7-52.5-221.2
Wages, salaries and employee-48.3-5.4-53.7
benefits expenses
Depreciation-8.0-0.3-8.3
Other operating expenses-43.7-2.6-46.2
Operating profit0.87.78.5
Finance income and expenses0.20.00.2
Profit before tax1.17.78.7
Income taxes-0.3-0.1-0.3
Profit for the period0.87.68.4
Earnings per share, EUR0.020.140.16
Earnings per share, diluted, EUR0.010.140.15
Operating profit, per cent0.312.62.6
Equity per share, EUR8.40
Return on equity, per cent, moving19.4
12 months Return on capital employed, per 21.6 cent, moving 12 months Average number of employees, 7 655 456 8 112 converted to full-time staff Investments 14.9 14.9

Income statement,1-12/2006
Group, EUR millionsContinuing DiscontinuedTotal
operationsoperations
Revenue1 239.661.11 300.7
Other operating income5.129.334.4
Materials and consumables-721.1-52.5-773.6
Wages, salaries and employee-199.3-5.4-204.7
benefits expenses
Depreciation-31.8-0.3-32.1
Other operating expenses-192.6-2.6-195.1
Operating profit99.929.6129.5
Finance income and expenses-0.50.0-0.6
Profit before tax99.429.6128.9
Income taxes-24.2-0.1-24.3
Profit for the period75.229.5104.7
Earnings per share, EUR1.390.541.93
Earnings per share, diluted, EUR1.370.531.90
Operating profit, per cent8.148.410.0
Equity per share, EUR10.34
Return on equity, per cent, moving19.4
12 months Return on capital employed, per 22.9 cent, moving 12 months Average number of employees, 7 923 114 8 037 converted to full-time staff Investments 125.5 125.5

Earnings per share, EUR = (Profit before taxes - minority interest - income taxes) / Average number of shares, adjusted for share issues Return on equity, per cent, moving 12 months = 100 x Profit for the period (12 months) / (Equity + minority interest) (average over 12 months) Return on capital employed, per cent, moving 12 months = 100 x (Profit before taxes + interest and other financial expenses) (12 months) / Capital employed (average over 12 months)

SEGMENT INFORMATION Segments Sales, EUR millions 1-3/2007 1-3/2006 Change 1-12/2006 per cent

Department Store Division281.2235.8191 119.0
Hobby Hall55.652.66199.8
Seppälä34.632.47158.1
Shared0.20.220.9
Continuing operations, total371.7320.9161 477.8
Discontinued operations74.874.8
Group371.7395.7-61 552.6
Revenue, EUR millions1-3/20071-3/2006Change1-12/2006
per cent
Department Store Division236.3198.519941.3
Hobby Hall46.243.66165.9
Seppälä28.726.87130.8
Shared0.10.5-791.7
Continuing operations, total311.4269.4161 239.6
Discontinued operations61.161.1
Group311.4330.5-61 300.7
Operating profit, EUR1-3/20071-3/2006Change1-12/2006
millionsper cent
Department Store Division7.8-0.179.5
Hobby Hall1.51.0497.1
Seppälä0.80.8121.1
Shared-1.8-1.4-8.0
Eliminations0.00.60.2
Continuing operations, total8.20.899.9
Discontinued operations7.729.6
Group8.28.5-4129.5
Investments,
gross, EUR millions31.3.0731.3.06Change31.12.06
per cent
Department Store Division30.412.8138115.3
Hobby Hall0.60.7-243.2
Seppälä2.01.2696.1
Shared0.20.290.9
Continuing operations, total33.214.9123125.5
Discontinued operations
Group33.214.9123125.5
Assets, EUR millions31.3.0731.3.06Change31.12.06
per cent
Department Store Division633.2485.031557.9
Hobby Hall111.6111.10104.0
Seppälä36.329.12538.0
Shared27.560.4-5467.7
Continuing operations, total808.6685.518767.6
Discontinued operations22.9
Group808.6708.414767.6
Non-interest-bearing31.3.0731.3.06Change31.12.06
liabilities, EUR millionsper cent
Department Store Division116.398.718122.0
Hobby Hall20.018.8613.9
Seppälä5.33.93710.9
Shared33.429.51325.8
Continuing operations, total175.0150.816172.6
Discontinued operations2.6
Group175.0153.514172.6

Market areas1-3/2007
ContinuingDiscontinuedTotal
Sales, EUR millionsoperationsoperations
Finland 1)281.4281.4
Baltic states 2)43.043.0
Russia 3)47.347.3
Group371.7371.7
Finland, per cent75.775.7
International operations, per cent24.324.3
ContinuingDiscontinuedTotal
Revenue, EUR millionsoperationsoperations
Finland 1)234.3234.3
Baltic states 2)36.636.6
Russia 3)40.540.5
Group311.4311.4
Finland, per cent75.275.2
International operations, per cent24.824.8
ContinuingDiscontinuedTotal
Operating profit, EUR millionsoperationsoperations
Finland 1)10.810.8
Baltic states 2)2.52.5
Russia 3)-5.2-5.2
Group8.28.2
Finland, per cent132.2132.2
International operations, per cent-32.2-32.2
Investments,31.3.2007
gross, EUR millionsContinuingDiscontinuedTotal
operationsoperations
Finland 1)14.314.3
Baltic states 2)0.60.6
Russia 3)18.318.3
Group33.233.2
Finland, per cent43.143.1
International operations, per cent56.956.9
ContinuingDiscontinuedTotal
Assets, EUR millionsoperationsoperations
Finland 1)567.3567.3
Baltic states 2)74.174.1
Russia 3)167.3167.3
Group808.6808.6
Finland, per cent70.270.2
International operations, per cent29.829.8
1) Department Store Divisions,
Stockmann Auto, Hobby Hall and Seppälä 2) Department Store Divisions, Stockmann Auto, Hobby Hall and Seppälä 3) Department Store Divisions and Seppälä

Market areas1-3/2006
ContinuingDiscontinuedTotal
Sales, EUR millionsoperationsoperations
Finland 1)242.674.8317.5
Baltic states 2)36.636.6
Russia 3)41.741.7
Group320.974.8395.7
Finland, per cent75.680.2
International operations, per cent24.419.8
ContinuingDiscontinuedTotal
Revenue, EUR millionsoperationsoperations
Finland 1)202.661.1263.7
Baltic states 2)31.131.1
Russia 3)35.735.7
Group269.461.1330.5
Finland, per cent75.279.8
International operations, per cent24.820.2
ContinuingDiscontinuedTotal
Operating profit, EUR millionsoperationsoperations
Finland 1)0.97.78.6
Baltic states 2)1.31.3
Russia 3)-1.4-1.4
Group0.87.78.5
Finland, per cent114.8101.4
International operations, per cent-14.8-1.4
Investments,31.3.2006
gross, EUR millionsContinuingDiscontinuedTotal
operationsoperations
Finland 1)9.09.0
Baltic states 2)0.20.2
Russia 3)5.75.7
Group14.914.9
Finland, per cent60.460.4
International operations, per cent39.639.6
ContinuingDiscontinuedTotal
Assets, EUR millionsoperationsoperations
Finland 1)524.0524.0
Baltic states 2)73.873.8
Russia 3)87.722.9110.6
Group685.522.9708.4
Finland, per cent76.474.0
International operations, per cent23.626.0
1) Department Store Divisions,
Stockmann Auto, Hobby Hall and Seppälä 2) Department Store Divisions, Stockmann Auto, Hobby Hall and Seppälä 3) Department Store Divisions and Seppälä

Market areas1-12/2006
ContinuingDiscontinuedTotal
Sales, EUR millionsoperationsoperations
Finland 1)1 123.774.81 198.6
Baltic states 2)165.3165.3
Russia 3)188.8188.8
Group1 477.874.81 552.6
Finland, per cent76.077.2
International operations, per cent24.022.8
ContinuingDiscontinuedTotal
Revenue, EUR millionsoperationsoperations
Finland 1)937.561.1998.5
Baltic states 2)140.6140.6
Russia 3)161.6161.6
Group1 239.661.11 300.7
Finland, per cent75.676.8
International operations, per cent24.423.2
ContinuingDiscontinuedTotal
Operating profit, EUR millionsoperationsoperations
Finland 1)75.27.782.9
Baltic states 2)21.021.0
Russia 3)3.821.925.6
Group99.929.6129.5
Finland, per cent75.264.0
International operations, per cent24.836.0
Investments,31.12.2006
gross, EUR millionsContinuingDiscontinuedTotal
operationsoperations
Finland 1)64.064.0
Baltic states 2)1.81.8
Russia 3)59.759.7
Group125.5125.5
Finland, per cent51.051.0
International operations, per cent49.049.0
ContinuingDiscontinuedTotal
Assets, EUR millionsoperationsoperations
Finland 1)594.8594.8
Baltic states 2)69.769.7
Russia 3)103.1103.1
Group767.6767.6
Finland, per cent77.577.5
International operations, per cent22.522.5
1) Department Store Divisions,
Stockmann Auto, Hobby Hall and Seppälä 2) Department Store Divisions, Stockmann Auto, Hobby Hall and Seppälä 3) Department Store Divisions and Seppälä

Statement of changesShare
in equitypremiumLegal
Group, EUR millionsEquity*fundreserve
Equity December 31, 2005109.0166.50.2
Options exercised0.1
Dividends
Translation differences
Profit for the period
Equity March 31, 2006109.0166.60.2
Equity December 31, 2006111.7183.40.2
Options exercised0.52.6
Share bonus0.2
Transfer to other funds0.0
Cost of share issue
Dividends
Translation differences
Profit for the period
Equity March 31, 2007112.2186.20.2
* including share issue

Statement of changesTrans-
in equityOtherlationRetained
Group, EUR millionsfunds**reserveearnings
Equity December 31, 200543.90.0185.7
Options exercised0.1
Dividends-59.5
Translation differences0.00.0
Profit for the period8.4
Equity March 31, 200643.90.0134.7
Equity December 31, 200643.90.0232.3
Options exercised
Share bonus0.1
Transfer to other funds
Cost of share issue0.5
Dividends-72.1
Translation differences0.00.0
Profit for the period6.1
Equity March 31, 200743.90.0167.0
** excluding deferred tax liability

Statement of changes

in equityMinority
Group, EUR millionsTotalinterestTotal
Equity December 31, 2005505.20.0505.3
Options exercised0.30.3
Dividends-59.5-59.5
Translation differences0.00.0
Profit for the period8.40.08.4
Equity March 31, 2006454.40.0454.4
Equity December 31, 2006571.60.0571.6
Options exercised3.13.1
Share bonus0.30.3
Transfer to other funds0.00.0
Cost of share issue0.50.5
Dividends-72.1-72.1
Translation differences0.00.0
Profit for the period6.10.06.1
Equity March 31, 2007509.50.0509.5

Contingent liabilities, 31.3.07 31.3.06 31.12.06 Group EUR millions Mortgages on land and 1.7 1.7 1.7 buildings

Guarantees1.51.5
Pledges0.10.10.1
Total3.31.73.2
Lease agreements on business
premises, EUR millions Minimum rents payable on the basis of binding lease agreements on business premises
Within one year69.949.769.6
After one year342.9372.4351.5
Total412.8422.1421.1
Lease payments
Within one year1.00.91.1
After one year0.90.80.9
Total1.91.72.0
Derivative instruments
Nominal value
Interest rate derivatives5.3
Exchange rates
CountryCurrency31.3.0731.3.0631.12.06
RussiaRUB34.658033.546034.6800
EstoniaEEK15.646615.646615.6466
LatviaLVL0.70970.69610.6972
LithuaniaLTL3.45283.45283.4528

Income statement

quarterly,Q1Q4Q3Q2
Group, EUR millions2007200620062006
Continuing operations
Revenue311.4389.6281.1299.5
Other operating income0.00.40.04.7
Materials and consumables-191.6-215.6-166.1-170.8
Wages, salaries and-50.8-57.9-44.2-48.9
employee benefits expenses
Depreciation-9.1-7.9-7.9-8.1
Other operating expenses-51.7-58.1-43.0-47.7
Operating profit8.250.519.828.7
Finance income and expenses-0.2-0.50.5-0.9
Profit before tax8.050.120.427.9
Income taxes-1.9-12.3-5.0-6.6
Profit for the period,6.137.815.421.2
continuing operations Discontinued operations Profit for the period, 21.9 discontinued operations Profit for the period 6.1 37.8 15.4 43.1 Earnings per share, continuing operations, EUR
Basic0.110.700.290.39
Diluted0.110.690.280.39
Earnings per share,
discontinued operations, EUR
Basic0.00-0.010.41
Diluted-0.010.000.40
Earnings per share, total,
EUR
Basic0.110.700.280.80
Diluted0.110.680.280.79
Q1Q4Q3Q2
Sales, EUR millions2007200620062006
Department Store Division281.2363.4249.0270.8
Hobby Hall55.655.545.546.2
Seppälä34.645.340.240.2
Shared0.20.20.20.3
Continuing operations,371.7464.4334.9357.6
total Discontinued operations Group 371.7 464.4 334.9 357.6 Revenue, EUR millions
Department Store Division236.3305.5209.8227.4
Hobby Hall46.246.137.838.4
Seppälä28.737.533.233.3
Shared0.10.50.20.4
Continuing operations,311.4389.6281.1299.5
total Discontinued operations Group 311.4 389.6 281.1 299.5 Operating profit, EUR millions
Department Store Division7.844.313.122.2
Hobby Hall1.53.42.10.6
Seppälä0.87.35.47.6
Shared-1.8-3.8-0.9-1.9
Eliminations0.0-0.60.10.2
Continuing operations,8.250.619.828.7
total
Discontinued operations21.9
Group8.250.619.850.6

Income statement

quarterly,Q1Q4Q3Q2
Group, EUR millions2006200520052005
Continuing operations
Revenue269.4379.3262.0274.0
Other operating income0.07.00.00.0
Materials and consumables-168.7-214.3-155.7-156.6
Wages, salaries and-48.3-56.5-41.8-45.6
employee benefits expenses
Depreciation-8.0-8.7-6.7-7.3
Other operating expenses-43.7-52.8-40.2-41.7
Operating profit0.853.917.523.1
Finance income and expenses0.2-2.00.6-0.5
Profit before tax1.152.018.222.5
Income taxes-0.3-13.3-4.7-5.6
Profit for the period,0.838.613.516.9
continuing operations Discontinued operations Profit for the period, 7.6 3.7 2.0 1.0 discontinued operations Profit for the period 8.4 42.4 15.4 17.9 Earnings per share, continuing operations, EUR
Basic0.010.720.250.32
Diluted0.010.710.250.31
Earnings per share,
discontinued operations, EUR
Basic0.140.070.040.02
Diluted0.140.070.040.02
Earnings per share, total,
EUR
Basic0.150.790.290.34
Diluted0.150.780.290.33
Q1Q4Q3Q2
Sales, EUR millions2006200520052005
Department Store Division235.8344.3228.4244.4
Hobby Hall52.663.443.942.7
Seppälä32.445.140.139.9
Shared0.20.20.20.2
Continuing operations,320.9453.1312.6327.3
total
Discontinued operations74.8117.4109.6130.6
Group395.7570.5422.3457.9
Revenue, EUR millions
Department Store Division198.5289.0191.9204.8
Hobby Hall43.652.636.435.5
Seppälä26.837.333.132.9
Shared0.50.50.60.8
Continuing operations,269.4379.3262.0274.0
total
Discontinued operations61.196.489.9106.8
Group330.5475.7351.9380.9
Operating profit, EUR
millions
Department Store Division-0.137.812.115.2
Hobby Hall1.04.30.90.2
Seppälä0.814.56.98.4
Shared-1.4-3.3-1.4-1.5
Eliminations0.60.6-0.90.7
Continuing operations,0.853.917.523.1
total
Discontinued operations7.74.11.91.5
Group8.558.019.524.6

STOCKMANN plc

Hannu Penttilä CEO

DISTRIBUTION Helsinki Stock Exchange Principal media

A press and analyst conference will be held today, April 26, 2007, at 14.00 at the World Trade Center, Aleksanterinkatu 17, Helsinki.





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