STOCKMANN plc INTERIM REPORT January 1 - June 30, 2005

STOCKMANN plc STOCK EXCHANGE RELEASE August 11, 2005, at 12.15

STOCKMANN plc INTERIM REPORT January 1 - June 30, 2005

The Stockmann Group's profit on ordinary operations improved by 52 per cent in the second quarter. First-half sales were up 4.4 per cent to EUR 858.5 million (EUR 822.5 million in 2004). Seppälä more than doubled its first-half operating profit to EUR 9.8 million. Hobby Hall and the Department Store Division likewise reported improved operating profits. Stockmann Auto's operating profit decreased. Consolidated profit before taxes was EUR 25.9 million. The corresponding figure a year earlier, EUR 22.7 million, included EUR 2.3 million of other operating income. The return on capital employed was 16.0 per cent. The earnings estimate for 2005 is unchanged.

IFRS reporting

Stockmann adopted International Financial Reporting Standards (IFRS) on January 1, 2005. The comparative information used in this Interim Report is the 2004 figures according to IFRS, which were published at the annual level on February 15, 2005, and at the quarterly level on April 18, 2005. The accounting policies presented in the stock exchange release of April 18, 2005, have been observed in this Interim Report. The Interim Report is unaudited.

Sales and result

Stockmann's consolidated sales in the first half of 2005 were EUR 858.5 million, up EUR 36.0 million and 4.4 per cent on same-period sales. Net turnover was EUR 715.0 million, increasing by EUR 30.2 million and likewise by 4.4 per cent on the same period a year ago. International operations accounted for an increased share of consolidated sales, rising from 12 per cent to 16 per cent.

The Group's gross operating margin grew by EUR 18.0 million to EUR 239.7 million. The relative gross margin improved further and was 33.5 per cent (32.4 per cent). The relative gross margin improved on the comparison period in the Seppälä division and weakened slightly in the other divisions. The growth in the Group's relative gross margin was also attributable to the change in the sales mix: the proportion of low-margin Stockmann Auto's sales within consolidated sales decreased from the comparison period. Operating costs were up EUR 10.7 million. Depreciation increased by EUR 1.4 million. Operating profit on ordinary operations improved by EUR 5.9 million, net financial expenses increased by EUR 0.4 million and consolidated profit on ordinary operations before taxes grew by EUR 5.5 million. The growth in earnings was especially strong in the second quarter, when operating profit on ordinary operations before taxes rose by 52 per cent to EUR 24.2 million (EUR 15.9 million in 2004, excluding other operating income).

There was no other operating income in the report period, as against EUR 2.3 million in the comparison period. Consolidated operating profit increased by EUR 3.6 million on the comparison period, to EUR 26.2 million. Owing to the reduction in liquid assets, net financial expenses increased by EUR 0.4 million from the same period a year earlier and amounted to EUR 0.3 million. Profit before taxes rose by EUR 3.2 million to EUR 25.9 million.

Direct taxes were EUR 6.8 million, an increase of EUR 3.7 million on the previous year. The deferred taxes portion of taxes for the comparison period diminished due to the lowering of Finland's corporate tax rate from 29 per cent to 26 per cent from the beginning of 2004. The lowering of the tax rate reduced the deferred tax liability for the comparison period by EUR 2.6 million.

Net profit for the report period was EUR 19.1 million, compared with EUR 19.6 million a year earlier.

Earnings per share were EUR 0.36 (EUR 0.37) and diluted for options they were EUR 0.35 (EUR 0.36). The above-mentioned change in the deferred tax liability improved earnings per share in January-June 2004 by EUR 0.05. Equity per share was EUR 8.14 (EUR 9.05).

Sales and earnings trend by business segment

The Department Store Division's sales grew by 13 per cent to EUR 466.9 million. Sales in Finland were up 6 per cent. Sales by International Operations were boosted principally by the new department stores that were opened in Moscow in April and December 2004, the new Zara stores as well as by good same-store sales growth in all market areas. The Department Store Division's sales outside Finland grew by 46 per cent and their share of the division's sales rose to 24 per cent (18 per cent). The Department Store Division's operating profit increased by EUR 0.9 million to EUR 15.8 million (EUR 14.9 million). It was burdened by the start-up costs for new department stores and other stores abroad. The division's operating profit in the second quarter was EUR 15.2 million, an increase of EUR 3.7 million on the figure a year earlier.

Stockmann Auto's sales fell by 11 per cent to EUR 218.0 million. The division's operating profit was EUR 1.7 million, down EUR 4.0 million on the comparison period (EUR 5.7 million). Profit on ordinary operations decreased by EUR 1.7 million. Operating profit in the comparison period includes EUR 2.3 million of compensation received from the sale of the VW- Audi dealership in Helsinki's Herttoniemi district, which was booked in the second quarter. A major factor behind the drop in both sales and profit on ordinary operations was the transfer of the VW-Audi dealership in Herttoniemi to the importer as from 1 July 2004. Stockmann Auto's operating profit in the second quarter was EUR 1.5 million, representing an increase in operating profit on ordinary operations of EUR 0.2 million.

Hobby Hall's sales, EUR 103.2 million, were on a par with the comparison period (EUR 103.6 million). Sales in Finland diminished by one per cent owing to the cutback in the store network. Finland's distance retailing grew slightly and online sales continued their strong growth. Hobby Hall's sales in the Baltic countries grew by 3 per cent even though distance sales in Lithuania were wound up during the first part of the year. Hobby Hall's operating result increased by EUR 2.5 million to EUR 0.9 million (a loss of EUR 1.6 million). The division reported a second-quarter operating profit of EUR 0.2 million, an improvement of EUR 1.1 million on the figure a year earlier. Hobby Hall's positive earnings trend was due to the efficient carrying through of the programme aimed at improving cost- effectiveness and the gross margin.

Seppälä's sales increased by 13 per cent on the same period of last year and were EUR 69.9 million. Sales grew buoyantly (52 per cent) abroad, where they were lifted by the stores opened in Estonia, Latvia and Russia in 2004 as well as the good trend in like-for-like sales. In Finland too sales grew strongly, registering growth of 8 per cent. Thanks to higher sales and an improved relative gross margin, Seppälä's operating profit rose by a hefty EUR 5.9 million to EUR 9.8 million (EUR 3.9 million). Seppälä's second-quarter operating profit was EUR 8.4 million, or EUR 4.0 million higher than a year ago.

Financing and invested capital

The amount of liquid assets has been lowered as planned. Liquid assets amounted to EUR 14.4 million at the end of the report period, as against EUR 45.7 million a year earlier and EUR 41.4 million at the end of 2004.

Loan repayments were not made during the report period, nor have new long- term loans been drawn down. Interest-bearing liabilities at the end of June were EUR 99.0 million (EUR 67.9 million), of which EUR 15.1 million consisted of long-term liabilities. Share subscriptions made through the exercise of Loyal Customer share options and the options for the year 2000 added EUR 4.2 million to shareholders' equity. Capital expenditures amounted to EUR 22.1 million. Net working capital totalled EUR 233.6 million and decreased by EUR 3.9 million on the comparison period. The equity ratio was 61.3 per cent (67.6 per cent) in the report period. The equity ratio at the end of 2004 was 62.5 per cent.

The Group's capital employed diminished by EUR 12.1 million from June of the previous year and stood at EUR 533.8 million towards the end of the report period (EUR 535.9 million at the end of 2004). Over the past 12 months ROCE improved in line with higher earnings and the decrease in the amount of capital employed and was 16.0 per cent (14.8 per cent at the end of 2004).

New long-term financial targets

According to the Stockmann Board's estimate, in 2005 the Group will achieve the long-term financial targets that were set in 2001: a 15 per cent return on capital employed and an operating profit margin of at least 5 per cent. Accordingly, in June the Board of Directors confirmed the Group's new financial targets up to 2010. The objective is for the Group's return on capital employed to reach 20 per cent in 2010, with an operating profit margin of at least 8 per cent. The target for Group sales is to outpace the market. The equity ratio target has been set at a level of at least 50 per cent. The dividend policy will remain unchanged, the target being to pay dividends of at least 50 per cent of the profit on ordinary operations, nevertheless taking into account the financing required to grow the business.

Organizational changes

On June 17, 2005, Stockmann's Board of Directors appointed Seppälä Oy's managing director, Heikki Väänänen, B.Sc. (Econ.), as director of the Department Store Division and Group executive vice president, effective 1 November 2005. Heikki Väänänen will also act as the alternate to Group CEO Hannu Penttilä. The Department Store Division's present director, Jukka Hienonen, Stockmann's executive vice president, will resign from Stockmann's employ to become president and CEO of Finnair.

On July 11, 2005, Stockmann's Board of Directors appointed the sales director of Stockmann's Helsinki Department Store, Terhi Okkonen, eMBA, as managing director of Seppälä Oy and a member of the Stockmann Group's Management Committee, effective November 1, 2005.

Capital expenditures

Capital expenditures during the report period totalled EUR 22.1 million (EUR 27.9 million).

The biggest capital expenditure for the Department Store Division in 2005 is the department store that is to be opened in leased premises in the new section of the Jumbo Shopping Centre in Vantaa. The department store will have about 11 000 square metres of retail space and it will be opened in October 2005. Stockmann's share of the cost estimate for the project is about EUR 8 million.

A large-scale project for enlargement and modification works on the department store in the centre of Helsinki has got under way. The town plan change required for it was approved by the Helsinki City Council in June. According to the plan, the department store's commercial premises will be expanded 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 and maintenance areas will be built for the department store as well as access passages to the new customer car park. 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 115 million. The works are estimated to be completed phase by phase by the end of 2009.

During the latter part of the year the fourth Zara store in Finland will be opened at the Jumbo Shopping Centre in Vantaa and Stockmann Beauty stores will be opened in Jyväskylä and at the Sello Shopping Centre in Espoo. In early 2006, a Stockmann Beauty store will be opened in the Kamppi shopping mall in Helsinki.

The first Bestseller store operating on the franchising principle was opened in February at the Mega North Shopping Centre in Moscow. A further six new Bestseller stores will be opened in Russia during 2005. Apart from Moscow, Bestseller stores will also be opened in Kazan and St Petersburg. The flagship Zara store in Russia was opened in the heart of Moscow at the beginning of June. Russia's fifth and sixth Zara stores will be opened in Moscow in August.

The Department Store Division's capital expenditures came to EUR 17.3 million.

Stockmann Auto's capital expenditures amounted to EUR 2.5 million, of which an outlay of EUR 1.6 million was made on vehicles included in capital assets. Hobby Hall's capital expenditures amounted to EUR 0.6 million.

Seppälä's capital expenditures came to EUR 0.5 million. Seppälä opened its first store in Lithuania in Vilnius at the beginning of April. Seppälä is aiming to open new stores in Moscow and to expand its operations to St Petersburg during 2005. In addition, Seppälä is moving to expand its operations in both Latvia and Lithuania during 2005.

Other capital expenditures in the report period amounted to EUR 1.2 million.

Current projects

In May 2005 Stockmann made an agreement on building a department store and shopping centre on Nevsky Prospekt in the heart of St Petersburg. The approximately 10 000 square metre plot that will be obtained for this purpose is located beside the Vosstaniya Square underground station and in the immediate vicinity of the Moscow Station.

The shopping centre to be erected will have total floor space of at least 45 000 square metres and in addition to the Stockmann department store, it will also feature other retail shops as well as a modern car park.

The department store and shopping centre investment will have a price tag of about EUR 80-110 million, depending on the final floor space to be built. Stockmann will carry out and finance the construction project either independently or in cooperation with suitable investors. Plans call for opening the department store and shopping centre in 2008.

Shares and shareholders

The company's market capitalization at the end of June was EUR 1 588.5 million (EUR 1 030.9 million). At the end of 2004 the market capitalization was EUR 1 140.8 million.

Stockmann's shares outperformed both the HEX General Index and the HEX Portfolio Index during the report period. At the end of June the stock exchange price of the Series A share was EUR 29.50, compared with EUR 21.10 at the end of 2004, and the Series B share was likewise selling at EUR 29.50, as against EUR 21.70 at the end of 2004.

The Helsinki Stock Exchange decided on reducing the trading lot for Stockmann shares from 50 shares to 20 as from 1 July 2005.

The 4 900 Stockmann shares subscribed for in December 2004 with the share options for 2000 were entered in the Trade Register on March 16, 2005 and they were admitted for public trading on the Helsinki Stock Exchange together with existing shares on March 17, 2005. As a consequence of the subscriptions the share capital was increased by EUR 9 800.

In April, the Stockmann share options for the year 2000 were exercised to subscribe for 48 000 Stockmann plc Series B shares with a par value of 2 euros and in May for 30 850 Series B shares. As a consequence of the subscriptions the share capital was increased by a total of EUR 157 700. Entries in the Trade Register were made for the 48 000 shares on May 20, 2005, and for the 30 850 shares on June 29, 2005. They were accepted for public trading on the Helsinki Stock Exchange together with the existing shares on May 23, 2005 and June 30, 2005.

By exercising the A, B and C share options for 2000, which are quoted on the Helsinki Stock Exchange, further subscriptions can be made for a total of 2 246 100 new Series B shares with a par value of 2 euros. The subscription price for shares to be subscribed for by exercising the A options is now EUR 13.95, the price through exercise of the B options is EUR 14.95 and the price through exercise of the C options is EUR 15.95. The dividends payable annually are deducted from the subscription price. The subscription period for shares to be subscribed for by exercising the share options for 2000 ends on April 1, 2007.

A total of 343 902 Stockmann plc Series B shares with a par value of 2 euros were subscribed for with Stockmann Loyal Customer share options during the subscription period from May 2, 2005 to May 31, 2005. The subscription rights were exercised by 12 851 Stockmann Loyal Customers. As a consequence of the subscriptions the share capital was increased by EUR 687 804. The subscription price was EUR 8.81 per share. The shares were entered in the Trade Register on June 29, 2005, and they became available for public trading, together with the existing shares, on the Helsinki Stock Exchange on June 30, 2005. A total of 950 835 Stockmann Series B shares have been subscribed for with Loyal Customer share options during 2001-2005. The subscription period ended on May 31, 2005.

Following the above-mentioned increases, the share capital is 107 695 424 euros and the total number of Series B shares is 29 283 469.

Stockmann held 396 876 of its own Series B shares (treasury shares) at the end of June 2005, and they represented 0.7 per cent of all the shares outstanding and 0.1 per cent of all the votes. Their acquisition cost was a total of EUR 6.0 million.

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

Personnel strength

During the report period the Stockmann Group had an average payroll of 10 067 employees, or 1 042 more than in the comparison period. The growth in the number of employees was attributable mainly to the new department stores and other stores in Moscow. Converted to full-time staff, the average number of employees increased by 817 and was 8 135.

At the end of June 2005 the number of staff working abroad was 3 217 people. At the end of June of last year Stockmann had 2 205 people working abroad. The proportion of the total personnel who were working abroad increased from 23 per cent in the comparison period to 31 per cent.

Full-year outlook

Retail sales excluding the motor trade are estimated to increase by about 3 per cent in Finland in 2005. The volume of new vehicle sales is estimated to remain at the previous year's level. The economies of Russia and the Baltic countries are anticipated to continue growing at a faster rate than the Finnish market. The Stockmann Group's sales in 2005 are expected to come in at about EUR 1.85 billion.

The Group's third-quarter earnings are anticipated to improve on the previous year's figure.

The Department Store Division's full-year operating profit is estimated to improve, Hobby Hall's result to move into the black and Seppälä's operating profit to be markedly higher than in the previous year. Stockmann Auto's operating profit will fall significantly short of the figure reported last year. The Group's earnings estimate for the full year is unchanged. Stockmann's target is to post even better earnings in 2005 than in 2004.

Helsinki, August 11, 2005


Balance sheet, Group EUR millionsJune 30,June 30,Dec. 31,
Non-current assets
    Intangible assets25.630.524.4
    Property, plant and equipment272.9248.7268.4
    Long-term investments7.17.17.1
    Long-term receivables,
   Deferred tax assets2.91.12.0
Total non-current assets314.8291.9310.3
Current assets
   Interest-bearing receivables103.7101.5108.1
   Non interest-bearing88.280.994.2
   Available-for-sale investments0.01.20.0
   Securities held in current1.629.828.7
   Cash and cash equivalents12.715.912.7
Total current assets394.1414.9438.7
Total assets708.9706.9749.0
Minority interest0.00.00.0
Total equity434.9478.0467.9
Long-term borrowings,
interest-bearing Deferred tax liabilities 29.0 30.3 29.2 Current liabilities
Interest-bearing short-term debt83.916.852.7
Non interest-bearing short-term146.1130.6183.8
Total current liabilities230.0147.4236.6
Total equity and liabilities708.9706.9749.0
Equity ratio, per cent61.367.662.5
Gearing, per cent19.54.75.7
Cash flow from operations per0.260.281.62
share, EUR Interest-bearing net debt, -25.5 -83.8 -90.0 EUR mill.* Number of shares at June 30, 2005, 53 848 53 247 53 420 thousands Weighted average number of shares, 53 039 52 240 52 544 thousands Weighted average number of shares, 53 927 52 776 53 509 diluted, thousands

*Interest-bearing liabilities less cash in hand and at banks less securities held in current assets less interest-bearing debtors

Funds statement, Group 1-6/05 1-6/04 1-12/04 EUR millions Cash flow from operations 14.0 14.8 86.4 Cash flow into and from investments

   Capital expenditures-23.3-28.1-57.1
   Cash from non-current assets0.20.52.4
Cash flow into and from-23.1-27.5-54.7
investments, total Financial cash flow
   Subscriptions with options4.26.79.5
   Dividend paid-53.3-70.4-123.0
   Change in short-term loans,
increase (+), decrease (-)
Financial cash flow, total-17.9-63.0-111.7
Change in cash funds-27.0-75.6-79.9
Cash funds at start of the period41.4121.3121.3
Cash funds at end of the period14.445.741.4

Income statement, Group, EUR1-6/051-6/04Change1-12/04
millionsper cent
Revenue715.0684.841 445.0
Other operating income2.3-1002.4
Materials and consumables-475.4-463.13-951.5
Salaries and employee-104.6-99.06-202.2
Other operating expenses-92.3-87.26-183.3
Operating profit26.222.61679.8
Finance income and costs-0.30.1-0.9
Profit before tax25.922.71478.9
Income taxes*-6.8-3.1118-19.6
Profit for the period19.119.6-259.3
Minority interest0.00.0-30.0
Net profit for the period19.119.6-259.3
* The effect of the reduction of tax rate in Finland on the deferred tax liability in 2004 was EUR -2.6 million.

Earnings per share, EUR0.360.37-31.13
Earnings per share, diluted,0.350.36-31.11
Operating profit, per cent3.73.3115.5
Equity per share, EUR8.149.05-108.83
Return on equity, per cent,12.9*12.2
moving 12 months Return on capital employed, 16.0 * 14.8 per cent, moving 12 months Average number of employees, 8 135 7 318 11 7 812 converted to full-time staff

* No information according to IFRS for the year 2003


Segments Sales, EUR millions

Department Store Division466.9412.113938.8
Stockmann Auto218.0244.3-11437.1
Hobby Hall103.2103.60214.4
Eliminations + shared0.40.50.9
Group858.5822.541 735.0
Revenue, EUR millions
Department Store Division392.3346.213789.3
Stockmann Auto178.3200.3-11358.0
Hobby Hall85.786.3-1177.9
Eliminations + shared1.10.91.5
Group715.0684.841 445.0
Operating profit, EUR
Department Store Division15.814.9663.7
Stockmann Auto1.75.7-707.0
Hobby Hall0.9-1.6-2.9
Investments, gross, EUR
Department Store Division17.322.6-2348.8
Stockmann Auto2.52.6-24.4
Hobby Hall0.60.7-161.2
Assets, EUR millions30.6.0530.6.04Change31.12.04
per cent
Department Store Division429.9414.84443.1
Stockmann Auto109.194.915113.1
Hobby Hall97.4102.1-5102.2
liabilities, EUR millions
Department Store Division80.571.01396.5
Stockmann Auto39.436.3945.1
Hobby Hall10.411.6-1017.0
Market areasChange
1-6/051-6/04per cent1-12/04
Sales, EUR millions
Finland 1)717.7720.801 492.9
Baltic states 2)63.453.319119.5
Russia 3)77.448.460122.5
Group858.5822.541 735.0
Finland, per cent83.687.686.0
International operations,16.412.414.0
per cent Revenue, EUR millions
Finland 1)595.0597.601 237.9
Baltic states 2)53.945.718102.0
Russia 3)66.141.559105.1
Group715.0684.841 445.0
Finland, per cent83.287.385.7
International operations,16.812.714.3
per cent Operating profit, EUR millions
Finland 1)29.325.11776.9
Baltic states 2)0.9-2.2-1400.2
Russia 3)-3.9-0.32.7
Investments, gross,
million euros
Finland 1)13.79.54522.3
Baltic states 2)0.62.1-713.1
Russia 3)7.816.3-5233.5
Finland, per cent62.033.937.8
International operations,
per cent
Assets, EUR millionsChange
30.6.0530.6.04per cent31.12.04
Finland 1)557.8574.2-3602.2
Baltic states 2)69.075.7-970.9
Russia 3)82.157.04475.9
Finland, per cent78.781.280.4
International operations,21.318.819.6
per cent

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 changes in

Group, EUR millionsEquityfundfundreservefunds*
Equity December 31, 2003105.3147.
Translation differences
Deferred tax
liabilities/assets Depreciation
Own shares-6.2
Financial instruments0.3
Adjusted equity105.3147.
January 1, 2004
Options exercised1.25.5
Transfer to other funds-0.20.1
Cash flow hedges-0.3
Financial instruments0.4
Translation differences
Profit for the period
Equity June 30, 2004106.5152.
Equity December 31, 2004106.8154.
Options exercised0.83.4
Transfer to other funds0.00.0
Cash flow hedges-3.5
Translation differences
Profit for the period
Equity June 30, 2005107.7158.
* Excluding deferred tax liability

Statement of changes in equity Trans-

Group, EUR millionsinterestreserveearningsTotal
Equity December 31, 20030.0-0.1244.7547.1
Translation differences0.1-0.10.0
Deferred tax liabilities/assets-7.5-7.5
Own shares-6.2
Financial instruments-0.9-0.6
Adjusted equity January 1, 20040.00.0225.4522.0
Options exercised6.7
Transfer to other funds0.0-0.1
Cash flow hedges-0.3
Financial instruments0.4
Translation differences0.10.1
Profit for the period0.019.619.6
Equity June 30, 20040.00.1174.6478.0
Equity December 31, 20040.0-0.1161.9467.9
Options exercised4.2
Transfer to other funds0.10.1
Cash flow hedges-3.5
Translation differences0.00.0
Profit for the period0.019.119.1
Equity June 30, 20050.0-0.1128.1434.9

Contingent liabilities, Group 30.6.05 30.6.04 31.12.04 EUR millions

Mortgages on land and buildings1.71.71.7
Other commitments27.244.124.4
Lease agreements on business
premises, EUR millions Minimum rents payable on the basis of binding lease agreements on business premises
Within one year59.558.559.3
After one year346.9379.0397.5
Derivative instruments
Nominal value
Foreign exchange derivatives127.364.786.9
Interest rate derivatives35.035.035.0
Exchange rates

Income statement, Group, EUR millions Q2/05 Q1/05 Q4/04 Q3/04 Q2/04 Q1/04 quarterly, EUR millions

Other operating income0.
Materials and-247.3-228.1-266.6-221.8-230.2-232.9
consumables Salaries and employee -53.6 -51.0 -58.9 -44.2 -51.2 -47.8 benefits
Other operating expenses-47.3-45.0-54.0-42.1-43.3-43.9
Operating profit24.61.642.414.818.64.0
Finance income and costs-0.50.1-0.1-0.8-0.40.5
Profit before tax24.21.742.213.918.24.5
Income taxes*-6.3-0.5-12.6-3.9-1.9-1.2
Profit for the period17.91.229.710.016.43.2
Minority interest0.
Net profit for the17.91.229.710.016.43.2
period * The effect of the reduction of tax rate in Finland on the deferred tax liability in the second quarter 2004 was EUR -2.6 million. Earnings per share, EUR
Sales, EUR millions
Department Store253.5213.4310.2216.6212.4199.6
Stockmann Auto121.696.597.395.5126.4117.9
Hobby Hall42.760.564.646.247.056.6
Eliminations + shared0.
Revenue, EUR millions
Department Store212.5179.8260.8182.4178.4167.8
Stockmann Auto99.279.179.578.2103.496.8
Hobby Hall35.550.253.438.338.947.3
Eliminations + shared0.
Operating profit,
EUR millions Department Store 15.2 0.6 37.1 11.7 11.5 3.4 Division
Stockmann Auto1.
Hobby Hall0.20.71.5-2.7-0.9-0.7
This Interim Report is unaudited.

Reconciliation of Balance Sheet in the comparative period

Balance Sheet, IFRS June 30, 2004,FASAdjust-IFRS
Group, EUR millionsments
Non-current assets
    Intangible assets30.530.5
    Property, plant and equipment242.76.0248.7
    Long-term investments28.6-21.57.1
    Long-term receivables, interest-bearing0.93.74.5
   Deferred tax assets0.80.21.1
Total non-current assets303.5-11.6291.9
Current assets
   Interest-bearing receivables98.82.8101.5
   Non interest-bearing receivables80.980.9
   Available-for-sale investments1.21.2
   Securities held in current assets29.829.8
   Cash and cash equivalents15.915.9
Total current assets411.03.9414.9
Total assets714.5-7.7706.9
Minority interest0.00.0
Total equity502.2-24.2478.0
Long-term borrowings, interest-bearing48.92.251.1
Deferred tax liabilities23.46.930.3
Current liabilities
Interest-bearing short-term debt16.816.8
Non interest-bearing short-term debt123.27.4130.6
Total current liabilities140.07.4147.4
Total equity and liabilities714.5-7.7706.9
Raconciliation of income statement in the comparative period

Income statement, Group, EUR millionsFASAdjust-IFRS
Income statement January 1 - June 30, 20041-6/04ments1-6/04
Other operating income2.32.3
Materials and consumables-463.10.0-463.1
Salaries and employee benefits-99.0-99.0
Other operating expenses-92.45.3-87.2
Operating profit17.65.022.6
Finance income and costs5.1-5.00.1
Profit before tax22.70.022.7
Income taxes-4.00.9-3.1
Profit for the period18.70.819.6
Minority interest0.00.0
Net profit for the period18.70.819.6
Raconciliation of income statement in the comparative period

Income statement, Group, EUR millionsFASAdjust-IFRS
Income statement January 1 - June 30, 20044-6/04ments4-6/04
Other operating income2.32.3
Materials and consumables-230.20.0-230.2
Salaries and employee benefits-51.2-51.2
Other operating expenses-46.12.8-43.3
Operating profit15.92.718.6
Finance income and costs2.0-2.4-0.4
Profit before tax17.90.318.2
Income taxes-2.60.7-1.9
Profit for the period15.41.016.4
Minority interest0.00.0
Net profit for the period15.41.016.4
Reconciliation of net profit in the comparative period

EUR millions4-6/041-6/041-12/04
Net profit for the period before minority15,418,758,2
interest according to FAS Effects of adopting IFRS
Costs of share issue0.20.20.2
Finance income-0.1-0.1-0.3
Financial instuments0.30.20.4
Income taxes0.70.91.3
IFRS adjustments, total1.00.81.1
Net profit for the period acoording to IFRS16.419.659.3
Attributable to
To equity holders of the parent16.419.659.3
To minority interest0.00.00.0
Reconciliation of shareholders' equity in the comparative period

EUR millions1.1.0430.6.0431.12.04
Total equity according to FAS547.1502.2491.7
Effects of adopting IFRS
Finance income0.0-0.1-0.3
Financial instuments-0.6-0.30.2
Income taxes-7.5-6.6-6.2
Fund for own shares-6.2-6.1-6.1
IFRS adjustments, total-25.1-24.3-23.7
Total equity according to IFRS522.0478.0467.9
Attributable to
Equity holders of the parent522.0478.0467.9
Minority interest0.00.00.0


Hannu Penttilä CEO

DISTRIBUTION Helsinki Stock Exchange Principal media

A press and analyst conference will be held today, August 11, 2005, at 14.00 at the World Trade Center, Aleksanterinkatu 17, Helsinki.