STOCKMANN'S IFRS COMPLIANT COMPARATIVE QUARTERLY INFORMATION FOR 2004
STOCKMANN plc STOCK EXCHANGE RELEASE April 18, 2005, at 17.30
STOCKMANN'S IFRS COMPLIANT COMPARATIVE QUARTERLY INFORMATION FOR 2004
On 15 February 2005 Stockmann issued a release on comparative annual IFRS information for 2004. The release at hand presents information on the effects of the adoption of IFRS on the consolidated balance sheet, income statement, key ratios and segment information for 2004 on a quarterly basis. From Stockmann's point of view, the most significant effects of the transition to IFRS relate to the treatment of revaluation of assets, the Company's own shares, some vehicle leasing and hire-purchase agreements, the recognition of financial instruments and segment reporting.
GENERAL
Stockmann converted from Finnish Accounting Standards (FAS) to International Financial Reporting Standards (IFRS) on 1 January 2005. The Company has prepared an opening balance sheet as at the date of transition, which is 1 January 2004. The interim financial reports for 2005 will be presented in accordance with IFRS.
The change in accounting standards impacts, amongst others, the following accounting policies:
The measurement and revaluation of property, plant and equipment
Stockmann applies the cost model as defined in IAS 16 (Property, Plant and Equipment) when measuring property, plant and equipment. Contrary to the Company's prior accounting practice, depreciation on the revaluation surplus of buildings is recorded over their useful lives in the IFRS financial statements. An adjustment equivalent to the accumulated depreciation has been done to equity in the IFRS opening balance sheet. Deferred tax liabilities as required by IFRS have been recorded on the revaluations.
Finance lease agreements
Motor vehicles under finance lease agreements, used by Stockmann Auto as courtesy and showroom cars have been recognised in the IFRS financial statements in accordance with IAS 17 (Leases) as assets and liabilities. According to the previous practice, these agreements were disclosed in the notes.
Treasury shares
In accordance with IAS 39 (Financial Instruments: Recognition and Measurement) the Company's own shares held by it have not been recognised in the balance sheet. The elimination of these shares decreases non- current investments and equity when compared to what was reported previously.
Investments in companies listed on the stock exchange
In terms of IFRS, investments in listed companies are measured at fair value at balance sheet date in accordance with IAS 39 (Financial Instruments: Recognition and Measurement). The difference between the market value and book value is recognised in equity. Previously, investments in equity instruments were measured at no higher than cost.
Receivables
Hire-purchase agreements transferred to finance companies when financing customer motor vehicle purchases have been recognised in accordance with IAS 39 (Financial Instruments: Recognition and Measurement). Agreements where all risks, rewards and control have not transferred to the transferee, are recognised in the IFRS balance sheet in receivables and debts. Under the previous reporting, these agreements were disclosed only in the notes to the financial statements. The interest income on these agreements is recognised over the duration of the agreement, whereas previously it was recognised in total at the inception of the agreement. As from 1 January 2004, hire-purchase agreements have been recognised in accordance with IAS 39, in conjunction with the transitional provisions of IFRS 1.
Derivatives and hedge accounting
Derivatives are measured at fair value in accordance with IAS 39. Stockmann uses in its IFRS reporting IAS 39 compliant hedge accounting to hedge forecast foreign currency purchases and sales.
Deferred tax liabilities and assets
A deferred tax liability or asset is recognised for all temporary differences between the carrying amount of an asset or liability and its tax base in accordance with IAS 12 (Income Taxes). The most significant liabilities arise from revaluations included in the carrying amounts of buildings and property and the property, plant and equipment of foreign companies. In terms of the previous accounting practice, no deferred tax assets and liabilities were calculated on these differences.
Translation differences
Cumulative translation differences have been combined with retained earnings at the date of transition to IFRS, as permitted by IFRS 1.
The Finnish pension scheme (TEL)
Under FAS, pension expenses have been recognised in accordance with local regulations. The Finnish pension scheme (TEL) has been accounted for as a defined contribution plan under FAS. Under IFRS, the disability element of TEL is also accounted for as a defined contribution plan. At the date of transition to IFRS, the total TEL disability obligation is estimated at 17.5 million euros.
Segment reporting
The introduction of IFRS will result in a change in the current segment reporting structure. A property unit whose income consists mainly of intragroup rentals, will fall away. In the IFRS reporting, property held by the Group has been allocated to segments with business operations by including it in the assets of each segment. In the segment income statements, depreciation and other costs relating to the buildings will be reported instead of the previous internal rentals. Under IFRS, other operating income has been allocated to the segments, whereas under FAS they were reported at Group level.
The identification of segments is based on the Group structure and internal reporting. The primary or business segments are the Department Store Division, Stockmann Auto, Hobby Hall and Seppälä. The secondary or geographical segments are Finland, the Baltic states and Russia.
Financial statement presentation
Instead of being disclosed in finance income, as was the case under FAS, interest received on interest-bearing receivables is included in operating profit and disclosed in other income below gross margin in the Group's income statement. This change was made after the release issued on 15 February. The change increases the Group's operating profit and decreases finance income respectively. For the segments, interest received on interest-bearing receivables were already included in operating profit under FAS.
Share-based payments
IFRS 2 (Share-based Payment), published in February 2004, was adopted at the beginning of 2005. The adoption of the standard does not have a significant impact on Stockmann's result.
Cash flow statements
IFRS reporting does not result in material changes to Stockmann's cash flow statements.
BALANCE SHEETS
Balance Sheet, IFRS 1 January 2004, Ref. FAS Adjustments IFRS Group, EUR mill. ASSETS Non-current assets
Intangible assets | 30,5 | 30,5 | ||
Property, plant and equipment | 1 | 230,0 | 6,3 | 236,3 |
Long-term investments | 2 | 28,7 | -21,6 | 7,0 |
Long-term receivables | 0,9 | 0,9 | ||
Deferred tax assets | 4 | 0,8 | 0,3 | 1,2 |
Total non-current assets | 290,9 | -14,9 | 275,8 | |
Current assets | ||||
Inventories | 191,3 | 191,3 | ||
Interest-bearing receivables | 110,5 | 110,5 | ||
Non interest-bearing receivables | 86,8 | 86,8 | ||
Available-for-sale investments | 6 | 1,0 | 1,0 | |
Securities held in current assets | 101,8 | 101,8 | ||
Cash and cash equivalents | 19,5 | 19,5 | ||
Total current assets | 509,9 | 1,0 | 511,0 | |
Total assets | 800,8 | -14,0 | 786,8 | |
EQUITY AND LIABILITIES | ||||
Equity | 547,1 | -25,0 | 522,0 | |
Minority interest | 0,0 | 0,0 | ||
Total equity | 7 | 547,1 | -25,0 | 522,0 |
Long-term borrowings | 8 | 48,6 | 2,3 | 50,9 |
Deferred tax liabilities | 10 | 26,0 | 7,8 | 33,9 |
Current liabilities | ||||
Interest-bearing short-term debt | 16,3 | 16,3 | ||
Non interest-bearing short-term debt | 9 | 162,7 | 0,9 | 163,8 |
Total current liabilities | 179,0 | 0,9 | 180,1 | |
Total equity and liabilities | 800,8 | -14,0 | 786,8 | |
Balance Sheet, IFRS 31 March 2004, | Ref. | FAS Adjustments | IFRS |
Intangible assets | 40,9 | 40,9 | ||
Property, plant and equipment | 1 | 229,9 | 6,2 | 236,1 |
Long-term investments | 2 | 28,7 | -21,6 | 7,1 |
Long-term receivables | 3 | 0,7 | 1,8 | 2,5 |
Deferred tax assets | 4 | 0,8 | 0,5 | 1,4 |
Total non-current assets | 301,0 | -13,1 | 288,0 | |
Current assets | ||||
Inventories | 217,3 | 217,3 | ||
Interest-bearing receivables | 3 | 108,9 | 108,9 | |
Non interest-bearing receivables | 5 | 85,8 | 1,4 | 87,2 |
Available-for-sale investments | 6 | 1,1 | 1,1 | |
Securities held in current assets | 71,3 | 71,3 | ||
Cash and cash equivalents | 17,4 | 17,4 | ||
Total current assets | 500,7 | 2,4 | 503,1 | |
Total assets | 801,7 | -10,6 | 791,1 | |
EQUITY AND LIABILITIES | ||||
Equity | 480,4 | -25,6 | 454,7 | |
Minority interest | 0,0 | 0,0 | ||
Total equity | 7 | 480,4 | -25,6 | 454,8 |
Long-term borrowings | 8 | 49,2 | 2,3 | 51,5 |
Deferred tax liabilities | 10 | 25,9 | 7,7 | 33,6 |
Current liabilities | ||||
Interest-bearing short-term debt | 16,3 | 16,3 | ||
Non interest-bearing short-term debt | 9 | 229,8 | 5,1 | 234,9 |
Total current liabilities | 246,1 | 5,1 | 251,2 | |
Total equity and liabilities | 801,7 | -10,6 | 791,1 | |
Balance Sheet, IFRS 30 June 2004, Group, Ref. | FAS Adjustments | IFRS |
Intangible assets | 30,5 | 30,5 | ||
Property, plant and equipment | 1 | 242,7 | 6,0 | 248,7 |
Long-term investments | 2 | 28,6 | -21,5 | 7,1 |
Long-term receivables | 3 | 0,9 | 3,7 | 4,5 |
Deferred tax assets | 4 | 0,8 | 0,2 | 1,1 |
Total non-current assets | 303,5 | -11,6 | 291,9 | |
Current assets | ||||
Inventories | 185,6 | 185,6 | ||
Interest-bearing receivables | 3 | 98,8 | 98,8 | |
Non interest-bearing receivables | 5 | 80,9 | 2,8 | 83,7 |
Available-for-sale investments | 6 | 1,2 | 1,2 | |
Securities held in current assets | 29,8 | 29,8 | ||
Cash and cash equivalents | 15,9 | 15,9 | ||
Total current assets | 411,0 | 3,9 | 414,9 | |
Total assets | 714,5 | -7,7 | 706,9 | |
EQUITY AND LIABILITIES | ||||
Equity | 502,2 | -24,2 | 478,0 | |
Minority interest | 0,0 | 0,0 | ||
Total equity | 7 | 502,2 | -24,2 | 478,0 |
Long-term borrowings | 8 | 48,9 | 2,2 | 51,1 |
Deferred tax liabilities | 10 | 23,4 | 6,9 | 30,3 |
Current liabilities | ||||
Interest-bearing short-term debt | 16,8 | 16,8 | ||
Non interest-bearing short-term debt | 9 | 123,2 | 7,4 | 130,6 |
Total current liabilities | 140,0 | 7,4 | 147,4 | |
Total equity and liabilities | 714,5 | -7,7 | 706,9 |
Balance Sheet, IFRS 30 September 2004, Ref. FAS Adjustments IFRS Group, EUR mill. ASSETS Non-current assets
Intangible assets | 36,3 | 36,3 | ||
Property, plant and equipment | 1 | 241,5 | 5,8 | 247,3 |
Long-term investments | 2 | 28,6 | -21,5 | 7,1 |
Long-term receivables | 3 | 0,8 | 5,5 | 6,3 |
Deferred tax assets | 4 | 0,8 | 0,2 | 1,1 |
Total non-current assets | 308,0 | -9,9 | 298,0 | |
Current assets | ||||
Inventories | 237,1 | 237,1 | ||
Interest-bearing receivables | 3 | 97,8 | 97,8 | |
Non interest-bearing receivables | 5 | 71,3 | 4,5 | 75,7 |
Available-for-sale investments | 6 | 1,3 | 1,3 | |
Securities held in current assets | 39,7 | 39,7 | ||
Cash and cash equivalents | 13,5 | 13,5 | ||
Total current assets | 459,3 | 5,7 | 465,1 | |
Total assets | 767,3 | -4,2 | 763,1 | |
EQUITY AND LIABILITIES | ||||
Equity | 512,2 | -23,7 | 488,5 | |
Minority interest | 0,0 | 0,0 | ||
Total equity | 7 | 512,2 | -23,7 | 488,5 |
Long-term borrowings | 8 | 48,7 | 2,2 | 50,9 |
Deferred tax liabilities | 10 | 23,4 | 6,8 | 30,3 |
Current liabilities | ||||
Interest-bearing short-term debt | 16,9 | 16,9 | ||
Non interest-bearing short-term debt | 9 | 166,1 | 10,5 | 176,5 |
Total current liabilities | 183,0 | 10,5 | 193,5 | |
Total equity and liabilities | 767,3 | -4,2 | 763,1 | |
Balance Sheet, IFRS 31 December 2004, | Ref. | FAS | Adjustments | IFRS |
Intangible assets | 24,4 | 24,4 | ||
Property, plant and equipment | 1 | 262,7 | 5,7 | 268,4 |
Long-term investments | 2 | 28,0 | -21,0 | 7,1 |
Long-term receivables | 3 | 1,1 | 7,4 | 8,5 |
Deferred tax assets | 4 | 1,8 | 0,3 | 2,0 |
Total non-current assets | 318,1 | -7,7 | 310,3 | |
Current assets | ||||
Inventories | 195,0 | 195,0 | ||
Interest-bearing receivables | 3 | 102,3 | 102,3 | |
Non interest-bearing receivables | 5 | 93,7 | 6,3 | 100,1 |
Available-for-sale investments | 6 | 0,0 | 0,0 | |
Securities held in current assets | 28,7 | 28,7 | ||
Cash and cash equivalents | 12,7 | 12,7 | ||
Total current assets | 432,4 | 6,4 | 438,7 | |
Total assets | 750,4 | -1,3 | 749,0 | |
EQUITY AND LIABILITIES | ||||
Equity | 491,7 | -23,8 | 467,9 | |
Minority interest | 0,0 | 0,0 | ||
Total equity | 7 | 491,7 | -23,8 | 467,9 |
Long-term borrowings | 8 | 13,1 | 2,2 | 15,3 |
Deferred tax liabilities | 10 | 22,6 | 6,6 | 29,2 |
Current liabilities | ||||
Interest-bearing short-term debt | 52,7 | 52,7 | ||
Non interest-bearing short-term debt | 9 | 170,3 | 13,6 | 183,8 |
Total current liabilities | 223,0 | 13,6 | 236,6 | |
Total equity and liabilities | 750,4 | -1,5 | 749,0 |
1. According to the former accounting practice, no depreciation has been provided on the revaluation of buildings. At the end of 2003, accumulated depreciation of 10.8 million euros was deducted from the value of property, plant and equipment in the financial statements prepared under the previous accounting standards. The Company's share of property, plant and equipment in mutual real-estate companies relative to the Company's share of equity in these companies was added to property, plant and equipment in accordance with IFRS standards. The increase was 15.1 million euros at the end of 2003. The shares in mutual real-estate companies were included in long-term investments under the former accounting standards. At the end of 2003, courtesy and showroom cars to the value of 2.0 million euros used by Stockmann Auto and acquired by way of finance lease have been included in property, plant and equipment. The corresponding adjustments to the 2004 quarterly FAS balance sheets are 10.9 million euros for revaluations in the first quarter, 11.1 million euros in the second quarter, 11.2 million euros in the third quarter and 11.3 million euros at the end of the year, and 15.1 million euros for mutual real- estate companies in all the quarters. The value of vehicles acquired by way of finance lease was 1.9 million euros at the end of 2004.
2. At the end of 2003, treasury shares of 6.2 million euros were removed from long-term investments and shares in mutual real-estate companies of 14.8 million euros were transferred to property, plant and equipment in accordance with IFRS. Listed shares held by the Company have been classified in accordance with IAS 39 as assets available for sale and transferred from non-current assets to current assets. The carrying amount of these shares was 0.5 million euros at the end of 2003. The corresponding reclassifications to the 2004 FAS balance sheet are 6.2 million euros for treasury shares in the first and second quarters and 6.1 million euros for the end of the year and 14.8 million euros for mutual real-estate companies for all the quarters and 0.5 million euros for listed shares in the first, second and third quarters and 0.0 million euros at the end of the year.
3. In accordance with IAS 39 and IFRS 1, hire-purchase contracts that have been transferred to financing companies of 1.8 million euros in the first quarter, 3.7 million euros in the second quarter, 5.5 million euros in the third quarter and 7.4 million euros at the end of the year have been added to long-term receivables in the 2004 FAS financial statements. 1.4 million euros have been added to short-term receivables in the first quarter, 2.8 million euros in the second quarter, 4.1 million euros in the third quarter and 5.5 million euros at the end of the year.
4. In accordance with IFRS, deferred tax assets relating to the measurement of financial instruments and timing differences have been included in deferred tax assets.
5. Accrued income relating to the measurement of derivatives has been added to current non interest-bearing receivables.
6. Listed shares, with a carrying amount of 0.5 million euros, are included in available-for-sale financial assets in the IFRS balance sheet at the end of 2003. In the FAS balance sheet these shares are disclosed in non-current assets. Under IFRS, these shares are measured at their fair values. Most of these shares were sold in the last quarter of 2004.
7. STATEMENT OF CHANGES IN EQUITY
Statement of changes in equity Share Treasur Legal Other premium y share
Group, EUR mill. | Equity | fund | fund reserve | funds* | |
Equity 31 December 2003 | 105,3 | 147,1 | 6,2 | 0,2 | 43,7 |
Translation differences | |||||
Deferred tax liabilities/assets | |||||
Depreciation | |||||
Own shares | -6,2 | ||||
Financial instruments | 0,3 | ||||
Adjusted equity 1 January 2004 | 105,3 | 147,1 | 0,0 | 0,2 | 44,1 |
Options exercised | 0,0 | 0,2 | |||
Transfer to other funds | 0,1 | ||||
Cash flow hedges | -0,9 | ||||
Financial instruments | 0,4 | ||||
Dividends | |||||
Translation differences | |||||
Profit for the period | |||||
Equity 31 March 2004 | 105,3 | 147,3 | 0,0 | 0,2 | 43,6 |
Options exercised | 1,2 | 5,3 | |||
Transfer to other funds | -0,2 | 0,0 | |||
Cash flow hedges | 0,1 | ||||
Financial instruments | 0,5 | ||||
Translation differences | |||||
Profit for the period | |||||
Euity 30 June 2004 | 106,5 | 152,4 | 0,0 | 0,2 | 44,2 |
Options exercised | 0,0 | 0,0 | |||
Transfer to other funds | 0,0 | ||||
Cash flow hedges | -0,1 | ||||
Financial instruments | 0,5 | ||||
Share bonus |
Equity 30 September 2004 | 106,5 | 152,4 | 0,0 | 0,2 | 44,6 |
Options exercised | 0,4 | 2,3 | |||
Transfer to other funds | 0,0 | 0,0 | |||
Cash flow hedges | 0,3 | ||||
Financial instruments | -0,5 | ||||
Dividends | |||||
Translation differences | |||||
Profit for the period |
Statement of changes in equity Minority Translatio Retained n
Group, EUR mill. | interest | reserve | earnings | Total |
Equity 31 December 2003 | 0,0 | -0,1 | 244,7 | 547,1 |
Translation differences | 0,1 | -0,1 | 0,0 | |
Deferred tax | -7,5 | -7,5 |
Depreciation | -10,8 | -10,8 | ||
Own shares | -6,2 | |||
Financial instruments | -0,9 | -0,6 | ||
Adjusted equity 1 January | 0,0 | 0,0 | 225,4 | 522,0 |
Options exercised | 0,3 | |||
Transfer to other funds | -0,1 | 0,0 | ||
Cash flow hedges | -0,9 | |||
Financial instruments | 0,4 | |||
Dividends | -70,5 | -70,5 | ||
Translation differences | 0,1 | 0,1 | ||
Profit for the period | 0,0 | 3,2 | 3,2 | |
Equity 31 March 2004 | 0,0 | 0,1 | 158,2 | 454,8 |
Options exercised | 6,5 | |||
Transfer to other funds | 0,1 | -0,1 | ||
Cash flow hedges | 0,1 | |||
Financial instruments | 0,5 | |||
Translation differences | 0,0 | 0,0 | ||
Profit for the period | 0,0 | 16,4 | 16,4 | |
Euity 30 June 2004 | 0,0 | 0,1 | 174,6 | 478,0 |
Options exercised | 0,0 | |||
Transfer to other funds | 0,0 | |||
Cash flow hedges | 0,1 | 0,0 | ||
Financial instruments | 0,5 | |||
Share bonus | 0,0 | |||
Translation differences | 0,0 | 0,0 | ||
Profit for the period | 0,0 | 10,0 | 10,0 | |
Equity 30 September 2004 | 0,0 | 0,0 | 184,7 | 488,5 |
Options exercised | 2,7 | |||
Transfer to other funds | 0,0 | |||
Cash flow hedges | 0,2 | 0,5 | ||
Financial instruments | -0,5 | |||
Dividends | -52,8 | -52,8 | ||
Translation differences | 0,2 | 0,2 | ||
Profit for the period | 0,0 | 29,7 | 29,7 | |
Equity 31 December 2004 | 0,0 | -0,1 | 161,9 | 467,9 |
9. In accordance with IFRS, non interest-bearing current liabilities include an accrual relating to the measurement of derivatives. A liability, relating to car hire purchase agreements transferred, is also included in non interest-bearing current liabilities. This liability was 3.2 million euros in the first quarter of 2004, 6.4 million euros in the second quarter, 9.6 million euros in the third quarter and 12.9 million euros at the end of the year.
10. Tax liabilities arising from revaluations, from differences between the carrying amounts and tax bases of property, plant and equipment in foreign subsidiaries and from the measurement of financial instruments were added to deferred tax liabilities. At the end of 2004, these tax liabilities were as follows: 5.5 million euros relating to revaluations, 0.9 million euros relating to property, plant and equipment in foreign subsidiaries and 0.2 million euros relating to financial instruments.
INCOME STATEMENTS
Income statement, Group, EUR mill.
1 January-31 March 2004 | Ref. | FAS | Adjustments | IFRS |
Revenue | 336,0 | 0,0 | 336,0 | |
Other operating income | 11 | 0,0 | 0,0 | 0,0 |
Materials and consumables | -232,9 | 0,0 | -232,9 | |
Salaries and employee benefits | -47,8 | 0,0 | -47,8 | |
Depreciation | 12 | -7,3 | -0,1 | -7,5 |
Other operating expenses | 13 | -46,3 | 2,5 | -43,9 |
Operating profit | 1,6 | 2,3 | 4,0 | |
Finance income and costs | 14 | 3,1 | -2,6 | 0,5 |
Profit before tax | 4,8 | -0,3 | 4,5 | |
Income taxes | 15 | -1,4 | 0,1 | -1,2 |
Profit for the period | 3,4 | -0,2 | 3,2 | |
Minority interest | 0,0 | 0,0 | 0,0 | |
Net profit for the period | 3,4 | -0,2 | 3,2 | |
Income statement, Group, EUR mill. | ||||
1 January-30 June 2004 | Ref. | FAS | Adjustments | IFRS |
Revenue | 684,8 | 0,0 | 684,8 | |
Other operating income | 11 | 2,3 | 0,0 | 2,3 |
Materials and consumables | -463,1 | 0,0 | -463,1 | |
Salaries and employee benefits | -99,0 | 0,0 | -99,0 | |
Depreciation | 12 | -14,9 | -0,3 | -15,2 |
Other operating expenses | 13 | -92,4 | 5,3 | -87,2 |
Operating profit | 17,6 | 5,0 | 22,6 | |
Finance income and costs | 14 | 5,1 | -5,0 | 0,1 |
Profit before tax | 22,7 | 0,0 | 22,7 | |
Income taxes | 15 | -4,0 | 0,9 | -3,1 |
Profit for the period | 18,7 | 0,8 | 19,6 | |
Minority interest | 0,0 | 0,0 | 0,0 | |
Net profit for the period | 18,7 | 0,8 | 19,6 | |
Income statement, Group, EUR mill. | ||||
1 January-30 September 2004 | Ref. | FAS | Adjustments | IFRS |
Revenue | 1 015,4 | 0,0 1 015,4 | ||
Other operating income | 11 | 2,3 | 0,0 | 2,3 |
Materials and consumables | -684,9 | 0,0 | -684,9 | |
Salaries and employee benefits | -143,2 | 0,0 | -143,2 | |
Depreciation | 12 | -22,5 | -0,4 | -22,9 |
Other operating expenses | 13 | -136,7 | 7,5 | -129,3 |
Operating profit | 30,3 | 7,1 | 37,4 | |
Finance income and costs | 14 | 6,4 | -7,2 | -0,7 |
Profit before tax | 36,7 | -0,1 | 36,6 | |
Income taxes | 15 | -8,0 | 1,0 | -7,0 |
Profit for the period | 28,7 | 0,9 | 29,6 | |
Minority interest | 0,0 | 0,0 | 0,0 | |
Net profit for the period | 28,7 | 0,9 | 29,6 | |
Income statement, Group, EUR mill. | ||||
1 January-31 December 2004 | Ref. | FAS | Adjustments | IFRS |
Revenue | 1 445,0 | 0,0 1 445,0 | ||
Other operating income | 11 | 3,1 | -0,7 | 2,4 |
Materials and consumables | -951,5 | 0,0 | -951,5 | |
Salaries and employee benefits | -202,2 | 0,0 | -202,2 | |
Depreciation | 12 | -30,2 | -0,5 | -30,7 |
Other operating expenses | 13 | -192,9 | 9,6 | -183,3 |
Operating profit | 71,4 | 8,4 | 79,8 | |
Finance income and costs | 14 | 7,8 | -8,6 | -0,9 |
Profit before tax | 79,1 | -0,3 | 78,9 | |
Income taxes | 15 | -20,9 | 1,4 | -19,6 |
Profit for the period | 58,2 | 1,1 | 59,3 | |
Minority interest | 0,0 | 0,0 | 0,0 | |
Net profit for the period | 58,2 | 1,1 | 59,3 |
A profit of 0.7 million euros in the last quarter of the year was calculated on the sale of shares now to be valued at fair value, in accordance with the previous accounting standards. This profit has been transferred from other operating income to finance income in the IFRS financial statements.
12. Depreciation
Depreciation on the revaluations of 0.1 million euros for each quarter was added to the depreciation calculated according to former accounting standards.
13. Other operating expenses
Share issue costs of 0.2 million euros, formerly included in other operating expenses, were deducted in accordance with IFRS from the share premium in the second quarter. Interest income on interest-bearing receivables has been transferred from finance income to decrease other operating expenses. This interest income amounted to 2.4 million euros in the first quarter, 2.6 million euros in the second quarter, 2.1 million euros in the third quarter and 2.1 million euros in the last quarter of the year.
14. Finance income
Profit from sale of shares of 0.7 million euros, formerly included in other operating income, was transferred to finance income in the last quarter of the year. Income relating to the measurement of financial instrument was also added to finance income. This income was 0.4 million euros. Interest income from transferred Stockmann Auto leasing contracts of 0.3 million euros was deducted from finance income. This interest income will be recognized during the remaining contract period in the IFRS financial statements. Interest income on interest-bearing receivables has also been transferred from finance income to decrease other operating expenses. This interest income amounted to 2.4 million euros in the first quarter, 2.6 million euros in the second quarter, 2.1 million euros in the third quarter and 2.1 million euros in the last quarter of the year.
15. Taxes
Taxes are reduced by the decrease in deferred tax liabilities and assets arising from the IFRS adjustments, mainly due to a change in the Finnish tax rate.
SEGMENT INFORMATION
Segments
Sales, EUR mill. 1 January-31 March 2004 | FAS Adjustments | IFRS | |
Department Store Division | 199,6 | 0,0 | 199,6 |
Stockmann Auto | 117,9 | 0,0 | 117,9 |
Hobby Hall | 56,6 | 0,0 | 56,6 |
Seppälä | 28,6 | 0,0 | 28,6 |
Eliminations | 0,2 | 0,0 | 0,2 |
Group | 402,9 | 0,0 | 402,9 |
Revenue, EUR mill. | FAS Adjustments | IFRS | |
Department Store Division | 167,8 | 0,0 | 167,8 |
Stockmann Auto | 96,8 | 0,0 | 96,8 |
Hobby Hall | 47,3 | 0,0 | 47,3 |
Seppälä | 23,6 | 0,0 | 23,6 |
Eliminations | 0,5 | 0,0 | 0,5 |
Group | 336,0 | 0,0 | 336,0 |
Operating profit, EUR mill. | FAS Adjustments | IFRS | |
Department Store Division | 0,7 | 2,8 | 3,4 |
Stockmann Auto | 1,9 | 0,2 | 2,1 |
Hobby Hall | -0,7 | 0,0 | -0,7 |
Seppälä | -0,8 | 0,2 | -0,6 |
Eliminations | -2,1 | 2,6 | 0,5 |
Shared | 2,7 | -3,5 | -0,8 |
Group | 1,6 | 2,3 | 4,0 |
Investments, gross, EUR mill. | FAS Adjustments | IFRS | |
Department Store Division | 13,1 | 2,0 | 15,1 |
Stockmann Auto | 0,2 | 0,8 | 1,0 |
Hobby Hall | 0,4 | 0,0 | 0,4 |
Seppälä | 0,2 | 0,0 | 0,2 |
Shared | 3,6 | -2,8 | 0,8 |
Group | 17,6 | 0,0 | 17,6 |
Market areas | |||
Sales, EUR mill. | FAS Adjustments | IFRS | |
Finland 1) | 354,1 | 0,0 | 354,1 |
Baltic states 2) | 27,1 | 0,0 | 27,1 |
Russia 3) | 21,7 | 0,0 | 21,7 |
Group | 402,9 | 0,0 | 402,9 |
Revenue, EUR mill. | FAS Adjustments | IFRS | |
Finland 1) | 294,0 | 0,0 | 294,0 |
Baltic states 2) | 23,3 | 0,0 | 23,3 |
Russia 3) | 18,6 | 0,0 | 18,6 |
Group | 336,0 | 0,0 | 336,0 |
Operating profit, EUR mill. | FAS Adjustments | IFRS | |
Finland 1) | 4,1 | 2,1 | 6,1 |
Baltic states 2) | -2,2 | 0,3 | -2,0 |
Russia 3) | -0,2 | 0,0 | -0,2 |
Group | 1,6 | 2,3 | 4,0 |
Segments
Sales, EUR mill. 1 January-30 June 2004 | FAS Adjustments | IFRS | |
Department Store Division | 412,1 | 0,0 | 412,1 |
Stockmann Auto | 244,3 | 0,0 | 244,3 |
Hobby Hall | 103,6 | 0,0 | 103,6 |
Seppälä | 62,1 | 0,0 | 62,1 |
Eliminations | 0,5 | 0,0 | 0,5 |
Group | 822,5 | 0,0 | 822,5 |
Revenue, EUR mill. | FAS Adjustments | IFRS | |
Department Store Division | 346,2 | 0,0 | 346,2 |
Stockmann Auto | 200,3 | 0,0 | 200,3 |
Hobby Hall | 86,3 | 0,0 | 86,3 |
Seppälä | 51,2 | 0,0 | 51,2 |
Eliminations | 0,9 | 0,0 | 0,9 |
Group | 684,8 | 0,0 | 684,8 |
Operating profit, EUR mill. | FAS Adjustments | IFRS | |
Department Store Division | 9,4 | 5,4 | 14,9 |
Stockmann Auto | 3,1 | 2,6 | 5,7 |
Hobby Hall | -1,7 | 0,1 | -1,6 |
Seppälä | 3,5 | 0,4 | 3,9 |
Eliminations | -2,1 | 3,1 | 1,0 |
Shared | 5,4 | -6,6 | -1,2 |
Group | 17,6 | 5,0 | 22,6 |
Investments, gross, EUR mill. | |||
Department Store Division | 19,1 | 3,5 | 22,6 |
Stockmann Auto | 0,5 | 2,0 | 2,6 |
Hobby Hall | 0,7 | 0,0 | 0,7 |
Seppälä | 0,6 | 0,0 | 0,6 |
Shared | 6,9 | -5,5 | 1,4 |
Group | 27,9 | 0,0 | 27,9 |
Market areas | |||
Sales, EUR mill. | FAS Adjustments | IFRS | |
Finland 1) | 720,8 | 0,0 | 720,8 |
Baltic states 2) | 53,3 | 0,0 | 53,3 |
Russia 3) | 48,4 | 0,0 | 48,4 |
Group | 822,5 | 0,0 | 822,5 |
Revenue, EUR mill. | FAS Adjustments | IFRS | |
Finland 1) | 597,6 | 0,0 | 597,6 |
Baltic states 2) | 45,7 | 0,0 | 45,7 |
Russia 3) | 41,5 | 0,0 | 41,5 |
Group | 684,8 | 0,0 | 684,8 |
Operating profit, EUR mill. | FAS Adjustments | IFRS | |
Finland 1) | 20,7 | 4,4 | 25,1 |
Baltic states 2) | -2,8 | 0,6 | -2,2 |
Russia 3) | -0,3 | 0,0 | -0,3 |
Group | 17,6 | 5,0 | 22,6 |
Segments
Sales, EUR mill. 1 January-30 September 2004 | FAS Adjustments | IFRS | |
Department Store Division | 628,7 | 0,0 | 628,7 |
Stockmann Auto | 339,8 | 0,0 | 339,8 |
Hobby Hall | 149,8 | 0,0 | 149,8 |
Seppälä | 100,2 | 0,0 | 100,2 |
Eliminations | 0,7 | 0,0 | 0,7 |
Group | 1 219,2 | 0,0 1 219,2 | |
Revenue, EUR mill. | FAS Adjustments | IFRS | |
Department Store Division | 528,5 | 0,0 | 528,5 |
Stockmann Auto | 278,4 | 0,0 | 278,4 |
Hobby Hall | 124,5 | 0,0 | 124,5 |
Seppälä | 82,6 | 0,0 | 82,6 |
Eliminations | 1,3 | 0,0 | 1,3 |
Group | 1 015,4 | 0,0 1 015,4 | |
Operating profit, EUR mill. | FAS Adjustments | IFRS | |
Department Store Division | 18,5 | 8,1 | 26,6 |
Stockmann Auto | 3,9 | 2,7 | 6,6 |
Hobby Hall | -4,5 | 0,2 | -4,3 |
Seppälä | 8,5 | 0,6 | 9,1 |
Eliminations | -4,6 | 5,3 | 0,7 |
Shared | 8,5 | -9,8 | -1,3 |
Group | 30,3 | 7,1 | 37,4 |
Investments, gross, EUR mill. | FAS Adjustments | IFRS | |
Department Store Division | 28,0 | 5,2 | 33,1 |
Stockmann Auto | 1,1 | 2,4 | 3,5 |
Hobby Hall | 0,9 | 0,0 | 0,9 |
Seppälä | 1,0 | 0,0 | 1,0 |
Shared | 9,4 | -7,5 | 1,9 |
Group | 40,4 | 0,0 | 40,4 |
Market areas | |||
Sales, EUR mill. | FAS Adjustments | IFRS | |
Finland 1) | 1 058,2 | 0,0 1 058,2 | |
Baltic states 2) | 82,0 | 0,0 | 82,0 |
Russia 3) | 79,0 | 0,0 | 79,0 |
Group | 1 219,2 | 0,0 1 219,2 |
Revenue, EUR mill. | FAS Adjustments | IFRS | |
Finland 1) | 877,7 | 0,0 | 877,7 |
Baltic states 2) | 70,0 | 0,0 | 70,0 |
Russia 3) | 67,8 | 0,0 | 67,8 |
Group | 1 015,4 | 0,0 1 015,4 |
Operating profit, EUR mill. | FAS Adjustments | IFRS | |
Finland 1) | 33,8 | 6,1 | 39,9 |
Baltic states 2) | -3,6 | 1,0 | -2,6 |
Russia 3) | 0,1 | 0,0 | 0,1 |
Group | 30,3 | 7,1 | 37,4 |
Segments
Sales, EUR mill. 1 January-31 December 2004 | FAS Adjustments | IFRS | |
Department Store Division | 938,8 | 0,0 | 938,8 |
Stockmann Auto | 437,1 | 0,0 | 437,1 |
Hobby Hall | 214,4 | 0,0 | 214,4 |
Seppälä | 143,7 | 0,0 | 143,7 |
Eliminations | 0,9 | 0,0 | 0,9 |
Group | 1 735,0 | 0,0 1 735,0 | |
Revenue, EUR mill. | FAS Adjustments | IFRS | |
Department Store Division | 789,3 | 0,0 | 789,3 |
Stockmann Auto | 358,0 | 0,0 | 358,0 |
Hobby Hall | 177,9 | 0,0 | 177,9 |
Seppälä | 118,4 | 0,0 | 118,4 |
Eliminations | 1,5 | 0,0 | 1,5 |
Group | 1 445,0 | 0,0 1 445,0 | |
Operating profit, EUR mill. | FAS Adjustments | IFRS | |
Department Store Division | 53,0 | 10,8 | 63,7 |
Stockmann Auto | 4,2 | 2,9 | 7,0 |
Hobby Hall | -3,1 | 0,3 | -2,9 |
Seppälä | 16,4 | 0,8 | 17,1 |
Eliminations | -7,6 | 6,1 | -1,4 |
Shared | 8,6 | -12,4 | -3,8 |
Group | 71,4 | 8,4 | 79,8 |
Investments, gross, EUR mill. | FAS Adjustments | IFRS | |
Department Store Division | 39,6 | 9,2 | 48,8 |
Stockmann Auto | 2,2 | 2,2 | 4,4 |
Hobby Hall | 1,2 | 0,0 | 1,2 |
Seppälä | 1,2 | 0,0 | 1,2 |
Shared | 14,7 | -11,4 | 3,3 |
Group | 58,9 | 0,0 | 58,9 |
Market areas | |||
Sales, EUR mill. | FAS Adjustments | IFRS | |
Finland 1) | 1 492,9 | 0,0 1 492,9 | |
Baltic states 2) | 119,5 | 0,0 | 119,5 |
Russia 3) | 122,5 | 0,0 | 122,5 |
Group | 1 735,0 | 0,0 1 735,0 |
Revenue, EUR mill. | FAS Adjustments | IFRS | |
Finland 1) | 1 237,9 | 0,0 1 237,9 | |
Baltic states 2) | 102,0 | 0,0 | 102,0 |
Russia 3) | 105,1 | 0,0 | 105,1 |
Group | 1 445,0 | 0,0 1 445,0 |
Operating profit, EUR mill. | FAS Adjustments | IFRS | |
Finland 1) | 69,9 | 7,0 | 76,9 |
Baltic states 2) | -1,2 | 1,4 | 0,2 |
Russia 3) | 2,7 | 0,0 | 2,7 |
Group | 71,4 | 8,4 | 79,8 |
CONTINGENT LIABILITIES
Contingent liabilities, Group, EUR 31.3.2004 FAS Adjustments IFRS mill.
Mortgages on land and buildings | 1,7 | 0,0 | 1,7 | |
Pledges | 0,2 | 0,0 | 0,2 | |
Other commitments | 56,7 | -5,2 | 51,5 | |
Total | 58,6 | -5,2 | 53,4 | |
Contingent liabilities, Group, EUR | 30.6.2004 | FAS | Adjustments | IFRS |
Mortgages on land and buildings | 1,7 | 0,0 | 1,7 | |
Pledges | 0,2 | 0,0 | 0,2 | |
Other commitments | 52,5 | -8,4 | 44,1 | |
Total | 54,4 | -8,4 | 46,0 | |
Contingent liabilities, Group, EUR | 30.9.2004 | FAS | Adjustments | IFRS |
Mortgages on land and buildings | 1,7 | 0,0 | 1,7 |
Pledges | 0,2 | 0,0 | 0,2 |
Other commitments | 52,2 | -11,6 | 40,6 |
Total | 54,1 | -11,6 | 42,5 |
Contingent liabilities, Group, EUR 31.12.2004 | FAS | Adjustments | IFRS |
Mortgages on land and buildings | 1,7 | 0,0 | 1,7 |
Pledges | 0,2 | 0,0 | 0,2 |
Other commitments | 39,2 | -14,8 | 24,4 |
Total | 41,1 | -14,8 | 26,3 |
FAS | IFRS | FAS | IFRS | |
Profit and loss account, Group | Q4 | Q4 | Q3 | Q3 |
quarterly, EUR mill. | 2004 | 2004 | 2004 | 2004 |
Net turnover | 429,7 | 429,7 | 330,6 | 330,6 |
Other operating income | 0,8 | 0,1 | 0,0 | 0,0 |
Raw materials and services | -266,6 -266,6 | -221,8 | -221,8 | |
Staff expenses | -58,9 | -58,9 | -44,2 | -44,2 |
Depreciation | -7,7 | -7,8 | -7,6 | -7,7 |
Other operating expenses | -56,2 | -54,0 | -44,3 | -42,1 |
Operating profit | 41,1 | 42,4 | 12,7 | 14,8 |
Financial income and expenses, total | 1,3 | -0,1 | 1,3 | -0,8 |
Profit before taxes | 42,4 | 42,2 | 14,0 | 13,9 |
Income taxes | -12,9 | -12,6 | -4,1 | -3,9 |
Profit for the period | 29,5 | 29,7 | 10,0 | 10,0 |
Minority interest | 0,0 | 0,0 | 0,0 | 0,0 |
Netprofit for the period | 29,5 | 29,7 | 10,0 | 10,0 |
Key figures | ||||
Earnings per share, basic | 0,56 | 0,58 | 0,19 | 0,18 |
Earnings per share, diluted | 0,57 | 0,56 | 0,19 | 0,19 |
Total, balance sheet | 750,4 | 749,0 | 767,3 | 763,1 |
Return on equity, per cent | 65,5 | 62,5 | 66,8 | 64,0 |
Segments | ||||
Sales by division, EUR mill. | ||||
Department Store Division | 310,2 | 310,2 | 216,6 | 216,6 |
Stockmann Auto | 97,3 | 97,3 | 95,5 | 95,5 |
Hobby Hall | 64,6 | 64,6 | 46,2 | 46,2 |
Seppälä | 43,5 | 43,5 | 38,1 | 38,1 |
Eliminations | 0,2 | 0,2 | 0,2 | 0,2 |
Group | 515,8 | 515,8 | 396,7 | 396,7 |
Net turnover by division, EUR mill. | ||||
Department Store Division | 260,8 | 260,8 | 182,4 | 182,4 |
Stockmann Auto | 79,5 | 79,5 | 78,2 | 78,2 |
Hobby Hall | 53,4 | 53,4 | 38,3 | 38,3 |
Seppälä | 35,8 | 35,8 | 31,4 | 31,4 |
Eliminations | 0,2 | 0,2 | 0,4 | 0,4 |
Group | 429,7 | 429,7 | 330,6 | 330,6 |
Operating profit by division, EUR mill. | ||||
Department Store Division | 34,5 | 37,1 | 9,0 | 11,7 |
Stockmann Auto | 0,3 | 0,5 | 0,7 | 0,9 |
Hobby Hall | 1,4 | 1,5 | -2,8 | -2,7 |
Seppälä | 7,8 | 8,0 | 5,1 | 5,3 |
Eliminations | -3,0 | -2,1 | -2,5 | -0,3 |
Shared | 0,1 | -2,5 | 3,1 | 0,0 |
Group | 41,1 | 42,4 | 12,7 | 14,8 |
FAS | IFRS | FAS | IFRS | |
Profit and loss account, Group | Q2 | Q2 | Q1 | Q1 |
quarterly, EUR mill. | 2004 | 2004 | 2004 | 2004 |
Net turnover | 348,8 | 348,8 | 336,0 | 336,0 |
Other operating income | 2,3 | 2,3 | 0,0 | 0,0 |
Raw materials and services | -230,2 -230,2 -232,9 | -232,9 | ||
Staff expenses | -51,2 | -51,2 | -47,8 | -47,8 |
Depreciation | -7,6 | -7,7 | -7,3 | -7,5 |
Other operating expenses | -46,1 | -43,3 | -46,3 | -43,9 |
Operating profit | 15,9 | 18,6 | 1,6 | 4,0 |
Financial income and expenses, total | 2,0 | -0,4 | 3,1 | 0,5 |
Profit before taxes | 17,9 | 18,2 | 4,8 | 4,5 |
Income taxes | -2,6 | -1,9 | -1,4 | -1,2 |
Profit for the period | 15,4 | 16,4 | 3,4 | 3,2 |
Minority interest | 0,0 | 0,0 | 0,0 | 0,0 |
Netprofit for the period | 15,4 | 16,4 | 3,4 | 3,2 |
Key figures | ||||
Earnings per share, basic | 0,30 | 0,32 | 0,06 | 0,05 |
Earnings per share, diluted | 0,29 | 0,31 | 0,06 | 0,05 |
Total, balance sheet | 714,5 | 706,9 | 801,7 | 791,1 |
Return on equity, per cent | 70,3 | 67,6 | 59,9 | 57,5 |
Segments | ||||
Sales by division, EUR mill. | ||||
Department Store Division | 212,4 | 212,4 | 199,6 | 199,6 |
Stockmann Auto | 126,4 | 126,4 | 117,9 | 117,9 |
Hobby Hall | 47,0 | 47,0 | 56,6 | 56,6 |
Seppälä | 33,5 | 33,5 | 28,6 | 28,6 |
Eliminations | 0,3 | 0,3 | 0,2 | 0,2 |
Group | 419,6 | 419,6 | 402,9 | 402,9 |
Net turnover by division, EUR mill. | ||||
Department Store Division | 178,4 | 178,4 | 167,8 | 167,8 |
Stockmann Auto | 103,4 | 103,4 | 96,8 | 96,8 |
Hobby Hall | 38,9 | 38,9 | 47,3 | 47,3 |
Seppälä | 27,6 | 27,6 | 23,6 | 23,6 |
Eliminations | 0,5 | 0,5 | 0,5 | 0,5 |
Group | 348,8 | 348,8 | 336,0 | 336,0 |
Operating profit by division, EUR mill. | ||||
Department Store Division | 8,8 | 11,5 | 0,7 | 3,4 |
Stockmann Auto | 1,2 | 3,6 | 1,9 | 2,1 |
Hobby Hall | -1,0 | -0,9 | -0,7 | -0,7 |
Seppälä | 4,2 | 4,4 | -0,8 | -0,6 |
Eliminations | 0,0 | 0,5 | -2,1 | 0,5 |
Shared | 2,7 | -0,4 | 2,7 | -0,8 |
Group | 15,9 | 18,6 | 1,6 | 4,0 |
Group key financial ratios 2004 | FAS 2004 | Effect of | IFRS |
transition to | 2004 | ||
IFRS | |||
Operating profit | 71.4 | 8.4 | 79.8 |
Net profit for the period, EUR mill. | 58.2 | 1.1 | 59.3 |
Earnings per share, undiluted EUR | 1.11 | 0.02 | 1.13 |
Earnings per share, diluted EUR | 1.09 | 0.02 | 1.11 |
Total assets EUR mill. | 750.4 | (1.4) | 749.0 |
Return on capital employed, per cent | 14.3 | 0.5 | 14.8 |
Return on shareholders' equity, per cent | 11.2 | 1.0 | 12.2 |
Equity ratio, per cent | 65.5 | (3.0) | 62.5 |
Earnings per share: Profit for the period divided by the average number of shares during the period adjusted for share issues
Return on capital employed, per cent: Profit before taxes plus interest and other financial expenses, divided by capital employed, multiplied by 100
Capital employed: Total assets less deferred tax liability and other non- interest-bearing liabilities (average over the year)
Return on equity, per cent: Profit for the period, divided by capital and reserves plus minority interest (average over the year), multiplied by 100
Equity ratio, per cent: Capital and reserves plus minority interest, divided by total assets less advance payments received, multiplied by 100
STOCKMANN plc
Hannu Penttilä CEO
DISTRIBUTION Helsinki Exchanges Principal media
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