STOCKMANN plc INTERIM REPORT January 1 – March 31, 2006

STOCKMANN plc STOCK EXCHANGE RELEASE April 26, 2006, at 11.30

STOCKMANN plc INTERIM REPORT January 1 – March 31, 2006

Major changes took place in the Group structure during the report period
when Stockmann divested the Zara business in Russia as from January 1,
2006 and the Stockmann Auto business as from March 1, 2006. As a
consequence of the disposals, the Stockmann Group’s aggregate sales
decreased by 1.2 per cent to EUR 395.7 million (EUR 400.6 million in
2005). Consolidated sales, eliminating the divested businesses, were up
7.7 per cent. Other operating income of EUR 7.4 million came from the
capital gain on the divestment of Stockmann Auto. Profit before taxes
increased by EUR 7.0 million and was EUR 8.7 million (EUR 1.7 million in
2005). The earnings estimate for 2006 is unchanged.

Changes in the Group structure

On January 20, 2006, Stockmann agreed to sell the entire shares
outstanding in its subsidiary Stockmann Auto Oy Ab to Veho Group Oy Ab,
the Ford businesses in Turku and Espoo to SOK as well as Stockmann Auto’s
VW-Audi business to Helsingin VV-Auto Oy, a Kesko Group company, for a
total price of about EUR 70 million. The Finnish Competition Authority
approved the transactions at the end of February, and Stockmann’s entire
vehicle business was transferred to the new owners on March 1, 2006. In
the same connection, Stockmann and Veho launched wide-ranging loyal
customer cooperation in the area of vehicle sales and services.

Stockmann sold its subsidiary engaged in the Zara business in Russia to
the owner of the brand, the Inditex Group of Spain, under an agreement
signed on January 30, 2006. In 2002 Stockmann and Inditex concluded an
agreement on the basis of which Stockmann received, up to 2010,
franchising rights to trade under the Zara brand in Russia. By the end of
2005, Stockmann opened seven Zara stores in Russia, and operations got off
to a good start. Sales generated by Stockmann’s Zara stores in Russia
amounted to just over EUR 46 million in 2005. In step with strong economic
growth, the Russian market has become an increasingly interesting
environment for retailers. Accordingly, Inditex and Stockmann decided by
mutual agreement to terminate their previous contractual arrangements and
concentrate henceforth on expanding their own business operations in
Russia. Under the agreement that has been made, the business in Russia has
been carried on for the account of Inditex as from January 1, 2006, and
the final agreement will be made by May 31, 2006, providing that the State
Antimonopoly Committee of the Russian Federation approves the transaction.
The purchase price is about EUR 41.5 million. The capital gain, to be
booked in the second quarter, will improve the Group’s earnings
substantially in 2006. Stockmann will continue the Zara business in
Finland.

In this Interim Report, both Stockmann Auto and the Zara business in
Russia are treated as discontinued operations in accordance with IFRS 5.

Sales and result

Stockmann’s consolidated sales, stripping out the Zara business in Russia
and the Stockmann Auto business for both years, grew by 7.7 per cent. Net
of these eliminations, sales decreased by 1.2 per cent to EUR 395.7
million (EUR 400.6 million). The Group’s sales abroad amounted to EUR 78.3
million, an increase of 13 per cent. Sales in Finland were down one per
cent to EUR 317.5 million. International operations accounted for an
increased share of consolidated sales, rising from 17 per cent to 20 per
cent and representing 24 per cent of continuing operations. Revenue was
EUR 330.5 million, as against EUR 334.1 million in the comparison period.

The gross margin on the Group’s operations rose by EUR 3.3 million to EUR
109.3 million and the relative gross margin was 33.1 per cent (31.7 per
cent). Hobby Hall’s relative gross margin improved, and for the Department
Store Division and Seppälä it was at the previous year’s level. The
improvement in the relative gross margin was attributable to the peeling
off of low-margin vehicle sales as from the beginning of March. Operating
costs increased by EUR 3.9 million and depreciation diminished by EUR 0.2
million. Operating profit was up by EUR 6.9 million to EUR 8.5 million
(EUR 1.6 million).

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

Net financial income and expenses improved by EUR 0.1 million and amounted
to a gain of EUR 0.2 million (EUR 0.1 million).

Profit before taxes was EUR 8.7 million, up EUR 7.0 million on the figure
a year earlier. Direct taxes were EUR 0.3 million, decreasing by EUR 0.2
million on the figure a year earlier. The capital gain on the sale of
shares in Stockmann Auto Oy Ab is tax-free in its entirety. Net profit for
the report period was EUR 8.4 million, compared with EUR 1.2 million a
year earlier.

Earnings per share were EUR 0.16 (EUR 0.02) and diluted for options they
were EUR 0.15 (EUR 0.02). Equity per share was EUR 8.40 (EUR 7.81).

Sales and earnings trend by business segment

The Department Store Division’s sales grew by 14 per cent to EUR 235.8
million. Sales in Finland were up 9 per cent. Sales were spurred by the
new department store that was opened in the Jumbo Shopping Centre in
Vantaa in October. International Operations’ sales were increased by the
good like-for-like retail performance by the department stores in Russia
and the Baltic countries as well as by the Bestseller stores that were
opened in Russia. Sales by International Operations grew by 32 per cent
and its share of the division’s sales rose to 26 per cent (23 per cent).
The Department Store Division’s operating result fell by EUR 0.3 million
and was EUR 0.1 million negative (profit of EUR 0.2 million in the first
quarter of 2005). Earnings in the report period were burdened by the start-
up costs for the department store that was opened in the Jumbo Shopping
Centre in Vantaa. International Operations reported positive earnings
growth, especially owing to the marked improvement in the results posted
by the department stores that were opened in Riga and Moscow in 2003 and
2004.

Because the volume and timing of mail order catalogues differed from last
year, Hobby Hall’s sales declined by 13 per cent to EUR 52.6 million (EUR
60.5 million). Online sales continued their robust growth, making up 44
per cent of Hobby Hall’s distance sales in Finland (31 per cent) and 29
per cent of Hobby Hall’s distance sales in Estonia (16 per cent). Thanks
to the increase in the relative gross margin and effective cost
management, Hobby Hall’s operating profit improved by EUR 0.3 million and
was EUR 1.0 million (EUR 0.7 million).

Seppälä’s sales increased by 8 per cent on the same period of last year
and were EUR 32.4 million. Sales grew strongly in the Baltic countries and
Russia, where they were boosted by the new stores that were opened towards
the end of 2005 and at the beginning of 2006 as well as by the good like-
for-like sales trend. Due to the energetic establishment of new stores,
fixed costs rose more quickly than sales. This led to a dip in Seppälä’s
operating profit, which was down EUR 0.5 million to EUR 0.8 million (EUR
1.3 million).

Stockmann Auto’s sales in January-February were EUR 74.5 million and it
reported operating profit of EUR 7.7 million. The operating profit figure
includes the EUR 7.4 million capital gain on the disposal of the Stockmann
Auto businesses. Stockmann Auto was transferred to the new owners on March
1, 2006.

Financing and capital employed

Liquid assets amounted to EUR 14.5 million at the end of the report
period, as against EUR 16.2 million a year earlier and EUR 18.4 million at
the end of 2005.

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
March were EUR 97.9 million (EUR 82.7 million), of which EUR 13.4 million
consisted of long-term borrowings (EUR 14.9 million). Capital expenditures
amounted to EUR 14.9 million. Net working capital totalled EUR 254.9
million and increased by EUR 17.0 million from the beginning of the year.
The lower amount of non-interest bearing liabilities increased net working
capital. The dividend of EUR 59.5 million for the 2005 financial year,
which was declared by a resolution of the Annual General Meeting on March
21, 2006, was paid out on March 31. In 2005 the dividend was paid in
April, whereby in the comparative figures it is treated as a distribution
of profits and a liability to shareholders. The equity ratio increased on
the comparison period and was 64.1 per cent (54.8 per cent). The equity
ratio at the end of 2005 was 66.4 per cent.

The return on capital employed over the past 12 months improved as a
result of the higher earnings and was 21.6 per cent (19.6 per cent at the
end of 2005). The Group’s capital employed increased by EUR 55.4 million
from March of the previous year and stood at EUR 552.3 million towards the
end of the report period (EUR 552.5 million at the end of 2005).

Capital expenditures and current projects

Capital expenditures during the report period totalled EUR 14.9 million
(EUR 8.9 million).

The construction works for the major enlargement and transformation
project for the department store in the centre of Helsinki got under way.
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 125 million. It is estimated that the
works will be completed stage by stage by 2010.

The twelfth Stockmann Beauty store was opened in Helsinki in March. During
the first part of the year, three Bestseller stores were opened in Russia:
two in St Petersburg and one in Kazan.

At the end of 2006, the Department Store Division is planning to open a
fourth department store in Moscow in the Mega Shopping Centre that will go
up on the southeast side of the city. The cost estimate for the department
store and other retail outlets that are to be built in leased premises is
about EUR 16 million for Stockmann’s part of the investment. A further
objective is to open another seven new Bestseller stores in Russia during
2006.

In 2005 Stockmann signed an agreement on the purchase of 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. Stockmann will erect
on the plot a shopping centre with about 50 000 square metres of gross
floor space. According to plans, this will be the site of a full-scale
Stockmann department store with about 20 000 square metres of retail
space, other retail stores, a hotel and an underground car-park. The
department store and shopping centre investment will have a price tag of
about EUR 120 million. Plans call for opening the department store and
shopping centre in autumn 2008.

The Department Store Division’s capital expenditures totalled EUR 12.8
million.

Hobby Hall’s capital expenditures amounted to EUR 0.7 million.

Seppälä’s capital expenditures came to EUR 1.2 million. During the report
period, Seppälä opened in Russia a store in both St Petersburg and Kazan.
During 2006, Seppälä intends to open a further ten or so stores in Latvia,
Lithuania and Russia.

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

Annual General Meeting

The Annual General Meeting resolved on March 21, 2006, in accordance with
the proposal of the Board’s Appointments and Compensation Committee, that
seven members be elected to seats on the Board and re-elected the
incumbent directors, Lasse Koivu, managing director, Föreningen
Konstsamfundet r.f.; 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 rf; for
a term of office up to the end of the next Annual General Meeting.

At its organization meeting on March 21, 2006, the Board of Directors re-
elected Lasse Koivu as its chairman and Erkki Etola as its vice chairman.
The Board of Directors re-elected Lasse Koivu chairman of the Appointments
and Compensation Committee and re-elected as the other members of the
committee Erkki Etola, Eva Liljeblom and Henry Wiklund.

Re-elected as regular auditors were Wilhelm Holmberg, Authorized Public
Accountant, and Henrik Holmbom, Authorized Public Accountant. KPMG Oy Ab
will continue as the deputy auditor.

The Annual General Meeting approved the Board of Directors’ proposal on
the granting of share options to Stockmann’s Loyal Customers. The total
maximum of 2 500 000 share options will be granted without consideration
to Stockmann’s Loyal Customers in disapplication of shareholders’ pre-
emptive subscription rights. The subscription rights are to be disapplied
because by granting the share options, the company will offer Loyal
Customers a benefit that rewards them for their continued patronage and at
the same time improves Stockmann’s competitive position. The share options
will be granted to Loyal Customers whose purchases during January 1, 2006
– December 31, 2007, together with purchases made on parallel cards for
the same account, are at least EUR 6 000 in total amount. For purchases of
at least EUR 6 000, a Loyal Customer will receive 20 share options without
consideration. In addition, for each full 500 euros by which the purchases
exceed EUR 6 000, the Loyal Customer will receive an additional two share
options. Each share option will entitle its holder to subscribe for one
Stockmann plc Series B share. The subscription price is the volume-
weighted average price of the Series B share on the Helsinki Stock
Exchange during the period February 1 – February 28, 2006, which is EUR
33.35. On the record date for each dividend payout, the subscription price
of a share subscribed for with the share options will be lowered by the
amount of the dividends that may be declared after March 21, 2006, and
prior to the share subscription. The subscription periods for the shares
are May 2, 2008 – May 31, 2008, May 2, 2009 – May 31, 2009 and May 2, 2010
– May 31, 2010. As a consequence of the subscriptions, the company’s share
capital can be increased by a maximum of EUR 5 000 000.

The Annual General Meeting passed the Board of Directors’ proposal on the
granting of share options to key employees of the Stockmann Group. A total
of 1 500 000 share options will be granted to key employees belonging to
the senior and middle management of Stockmann and its wholly-owned
subsidiary in disapplication of shareholders’ pre-emptive subscription
rights. The disapplication of the subscription right is made because the
share options are part of the Group’s incentive and commitment-building
scheme for key employees and is an important element in maintaining the
company’s competitiveness in the international recruitment market. Of the
share options, 375 000 will bear the marking 2006A, 375 000 the marking
2006B, 375 000 the marking 2006C, and 375 000 the marking 2006D. The
subscription period for shares with share option 2006A is March 1, 2008 –
March 31, 2010; with share option 2006B, March 1, 2009 – March 31, 2011;
with share option 2006C, March 1, 2010 – March 31, 2012; and with share
option 2006D, March 1, 2011 – March 31, 2013. The subscription period for
shares will not, however, commence with the 2006B and 2006D share options
unless the Group’s financial targets criteria as determined by the Board
of Directors prior to the distribution of these share options have been
met. Those share options 2006B and 2006D in respect of which the criteria
determined by the Board of Directors have not been met shall lapse in the
manner decided by the Board of Directors. Each share option will entitle
its holder to subscribe for one Stockmann plc Series B share, whereby a
total maximum of 1 500 000 shares can be subscribed for with the share
options. The subscription price for each share through the exercise of the
2006A and 2006B share options is the volume-weighted average price of the
company’s Series B share on the Helsinki Stock Exchange during the period
February 1 – February 28, 2006, plus 10 per cent, amounting to EUR 36.69
per share. The subscription price with the 2006C and 2006D share options
is the volume-weighted average price of the company’s Series B share on
the Helsinki Stock Exchange during the period February 1 – February 28,
2008, plus 10 per cent. On the record date for each dividend payout, the
subscription price of the shares to be subscribed for with share options
will be lowered by the amount of dividends declared after the commencement
of the period for determining the subscription price and prior to the
share subscription. As a consequence of the subscriptions, the company’s
share capital can be increased by a maximum of EUR 3 000 000.

The Annual General Meeting passed a resolution to authorize the Board of
Directors to decide on transferring a maximum of 396 876 of the company’s
own Series B shares (treasury shares) in one or more instalments. The
authorization will be valid for one year.

Shares and shareholders

The company’s market capitalization at the end of March was EUR 1 788.1
million (EUR 1 378.8 million). At the end of 2005 the market
capitalization was EUR 1 761.3 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 32.50, compared
with EUR 32.11 at the end of 2005, and the Series B share was selling at
EUR 33.08, as against EUR 32.53 at the end of 2005.

The 23 350 Stockmann shares subscribed for in December 2005 with the share
options for 2000 were entered in the Trade Register on February 28, 2006,
and they were admitted to public trading on the Helsinki Stock Exchange
together with existing shares on March 1, 2006. As a consequence of the
subscriptions, the share capital was increased by EUR 46 700. Following
the increase, the share capital was EUR 108 966 084. At March 31, 2006,
Stockmann had 24 564 234 Series A shares and 29 918 799 Series B shares.

Stockmann held 386 946 of its own Series B shares (treasury shares) at the
end of March 2006 and they represented 0.7 per cent of all the shares
outstanding as well as 0.1 per cent of the total votes. The shares were
bought back at a total price of EUR 5.8 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 its own shares.

Personnel strength

During the report period the Stockmann Group had an average payroll of 9
986 employees, or 205 more than in the comparison period. The department
store in the Jumbo Shopping Centre and the new stores in Moscow and St
Petersburg brought an increase in the number of employees, but the
personnel strength was reduced by the disposals of the Zara business in
Russia at the beginning of 2006 and Stockmann Auto at the beginning of
March. The personnel of Zara in Russia and Stockmann Auto transferred to
the new owners’ employ under the terms of their current employment
contracts. Stockmann’s average number of employees, converted to full-time
staff, increased by 159 and was 8 112.

At the end of March 2006 the number of staff working abroad was 3 064
people. At the end of March 2005, Stockmann had 3 016 people working
abroad. The proportion of the total personnel who were working abroad was
32 per cent (31 per cent).

Full-year outlook

Retail sales excluding the motor trade are estimated to increase by about
2-3 per cent in Finland in 2006. The markets in Russia and the Baltic
countries are set to continue growing faster than the Finnish market.
Because of the divestment of the vehicle business and the Zara business in
Russia, Stockmann’s sales in 2006 will be lower and are estimated to come
in at just over EUR 1.6 billion. Sales generated by continuing operations
are estimated to grow.

The capital gain on the sale of the company that was engaged in the Zara
business in Russia will improve second-quarter earnings significantly. In
the second quarter, earnings from continuing operations are also expected
to improve on the previous year. For the full year in 2006, Stockmann’s
target is for the Group to post markedly higher profit before taxes in
2006 than it did in 2005.

Balance sheet, Group EUR millions 31/3/06 31/3/05 31/12/05
ASSETS
Non-current assets
Intangible assets 6.0 9.1 7.6
Property, plant and equipment 271.5 284.1 303.1
Available-for-sale investments 6.0 7.1 6.0
Non-current receivables, 7.0 4.3
interest-bearing
Deferred tax assets 3.4 2.4 3.5
Non-current assets, total 286.9 309.7 324.5
Current assets
Inventories 190.3 228.3 212.0
Receivables, interest-bearing 108.1 111.8 107.5
Receivables, non interest-bearing 85.7 89.3 99.2
Cash and cash equivalents 14.5 16.2 18.4
Current assets, total 398.6 445.6 437.0
Assets classified as held for sale 22.9
Assets, total 708.4 755.3 761.5
EQUITY AND LIABILITIES
Equity 454.4 414.2 505.3
Minority interest 0.0 0.0 0.0
Equity, total 454.4 414.3 505.3
Non-current liabilities, interest-bearing 13.4 14.9 13.7
Deferred taxes liabilities 26.9 29.0 28.2
Current liabilities
Current liabilities, interest-bearing 84.5 67.8 33.6
Current liabilities, non interest-bearing 126.5 229.4 180.7
Current liabilities, total 211.0 297.1 214.3
Liabilities associated with assets 2.6
classified as held for sale
Equity and liabilities, total 708.4 755.3 761.5

Equity ratio 64.1 54.8 66.4
Gearing 18.4 16.0 5.7
Cash flow from operations per share -0.58 -0.57 1.53
Interest-bearing net debt -32.7 -52.4 -83.3
Number of shares at March 31 54 483 53 425 54 460
Weighted average number of shares
Weighted average number of shares 54 077 53 017 53 350
Equity ratio 54 995 54 361 54 129

Cash flow statement, Group EUR millions 1-03/2006 1-03/2005 1-12/2005
Cash flows from operating activities
Net profit for the financial year 8.4 1.2 76.9
Adjustments 0.8 8.5 57.8
Changes in working capital -33.3 -35.8 -18.8
Financial items -0.1 0.7 -2.6
Taxes paid -7.4 -4.9 -31.3
Net cash from operating activities -31.6 -30.3 81.9
Cash flows from investing activities
Group companies divested 45.7 11.7
Cash from other investments 0.1 0.1 1.7
Investments in tangible and intangible -13.2 -9.7 -58.1
assets
Net cash used in investing activities 32.6 -9.6 -44.7
Net cash used in financing activities -4.8 14.7 -60.2
Change in cash and cash equivalents -3.9 -25.2 -23.0
Cash and cash equivalents at start of the 18.4 41.4 41.4
period
Cash and cash equivalents at end of the 14.5 16.2 18.4
period

Income statement, 1-03/2006
Group, EUR millions Continuing Discontinued Total
operations operations
Revenue 269.4 61.1 330.5
Other operating income 0.0 7.4 7.4
Materials and consumables -168.7 -52.5 -221.2
Wages, salaries and employee benefits -48.3 -5.4 -53.7
expenses
Depreciation -8.0 -0.3 -8.3
Other operating expenses -43.7 -2.6 -46.2
Operating profit 0.8 7.7 8.5
Finance income and expenses 0.2 0.0 0.2
Profit before tax 1.1 7.7 8.7
Income taxes -0.3 -0.1 -0.3
Profit for the period 0.8 7.6 8.4

Earnings per share, EUR 0.02 0.14 0.16
Earnings per share, diluted, EUR 0.01 0.14 0.15
Operating profit, per cent 0.3 12.6 2.6
Equity per share, EUR 8.40
Return on equity, per cent, moving 12 19.4
months
Return on capital employed, per cent, 21.6
moving 12 months
Average number of employees, converted 7 655 456 8 112
to full-time staff
Investments 14.9 14.9

Income statement, 1-03/2005
Group, EUR millions Continuing Discontinued Total
operations operations
Revenue 249.5 84.6 334.1
Other operating income 0.0 0.0 0.0
Materials and consumables -157.0 -71.1 -228.1
Wages, salaries and employee -43.6 -7.3 -51.0
benefits expenses
Depreciation -7.3 -1.3 -8.5
Other operating expenses -40.6 -4.4 -45.0
Operating profit 1.0 0.6 1.6
Finance income and expenses 0.2 -0.1 0.1
Profit before tax 1.3 0.4 1.7
Income taxes -0.4 -0.1 -0.5
Profit for the period 0.9 0.3 1.2

Earnings per share, EUR 0.02 0.00 0.02
Earnings per share, diluted, EUR 0.02 0.00 0.02
Operating profit, per cent 0.4 0.7 0.5
Equity per share, EUR 7.81
Return on equity, per cent, moving 13.2
12 months
Return on capital employed, per 15.7
cent, moving 12 months
Average number of employees, 7,045 909 7,954
converted to full-time staff
Investments 7.6 1.3 8.9

Income statement, 1-12/2005
Group, EUR millions Continuing Discontinued Total
operations operations
Revenue 1 164.9 377.7 1 542.6
Other operating income 7.0 0.0 7.0
Materials and consumables -683.6 -311.9 -995.5
Wages, salaries and employee -187.6 -30.4 -218.0
benefits expenses
Depreciation -29.9 -5.8 -35.8
Other operating expenses -175.2 -21.5 -196.7
Operating profit 95.6 8.1 103.7
Finance income and expenses -1.7 0.8 -0.9
Profit before tax 93.9 8.9 102.8
Income taxes -24.0 -2.0 -26.0
Profit for the period 69.9 6.9 76.9

Earnings per share, EUR 1.31 0.13 1.44
Earnings per share, diluted, EUR 1.29 0.13 1.42
Operating profit, per cent 8.2 2.2 6.7
Equity per share, EUR 9.34
Return on equity, per cent, moving 15.8
12 months
Return on capital employed, per 19.6
cent, moving 12 months
Average number of employees, 7 503 1 034 8 537
converted to full-time staff
Investments 54.3 2.7 57.0

SEGMENT INFORMATION

Segments
Sales, EUR millions 1-03/2006 1-03/2005 Change 1-12/2005
per cent
Department Store Division 235.8 207.0 14 1 024.1
Hobby Hall 52.6 60.5 -13 210.5
Seppälä 32.4 30.0 8 155.2
Shared 0.2 0.2 -4 0.9
Continuing operations, total 320.9 297.7 8 1 390.7
Discontinued operations 74.8 102.9 -27 460.6
Group 395.7 400.6 -1 1 851.3

Revenue, EUR millions 1-03/2006 1-03/2005 Change 1-12/2005
per cent
Department Store Division 198.5 174.3 14 860.0
Hobby Hall 43.6 50.2 -13 174.7
Seppälä 26.8 24.8 8 128.1
Shared 0.5 0.2 121 2.1
Continuing operations, total 269.4 249.5 8 1 164.9
Discontinued operations 61.1 84.6 -28 377.7
Group 330.5 334.1 -1 1,542.6

Operating profit, EUR 1-03/2006 1-03/2005 Change 1-12/2005
millions per cent
Department Store Division -0.1 0.2 65.4
Hobby Hall 1.0 0.7 47 6.1
Seppälä 0.8 1.3 -43 31.1
Shared -1.4 -0.1 -7.3
Eliminations 0.6 -1.1 0.3
Continuing operations, total 0.8 1.0 -20 95.6
Discontinued operations 7.7 0.6 8.1
Group 8.5 1.6 425 103.7

Investments,
gross, EUR millions 31.03.2006 31.03.2005 Change 31.12.2005
per cent
Department Store Division 12.8 5.8 118 42.1
Hobby Hall 0.7 0.3 152 1.3
Seppälä 1.2 0.2 500 3.4
Shared 0.2 0.4 -53 2.3
Continuing operations, total 14.9 6.7 122 49.1
Discontinued operations 2.2 -100 7.9
Group 14.9 8.9 67 57.0

Assets, EUR millions 31.03.2006 31.03.2005 Change 31.12.2005
per cent
Department Store Division 485.0 450.9 8 463.7
Hobby Hall 111.1 106.8 4 106.3
Seppälä 29.1 27.4 6 31.2
Shared 60.4 46.7 29 39.3
Continuing operations, total 685.5 631.8 8 640.5
Discontinued operations 22.9 123.5 -81 121.1
Group 708.4 755.3 -6 761.5

Non-interest-bearing 31.03.2006 31.03.2005 Change 31.12.2005
liabilities, EUR millions per cent
Department Store Division 98.7 86.3 14 110.4
Hobby Hall 18.8 17.0 11 15.3
Seppälä 3.9 4.2 -8 10.9
Shared 29.5 106.4 -72 32.9
Continuing operations, total 150.8 214.0 -30 169.4
Discontinued operations 2.6 44.4 -94 39.6
Group 153.5 258.4 -41 209.0

Market areas 1-03/2006
Continuing Discontinued Total
Sales, EUR millions operations operations
Finland 1) 242.6 74.8 317.5
Baltic states 2) 36.6 36.6
Russia 3) 41.7 41.7
Group 320.9 74.8 395.7
Finland, per cent 75.6 80.2
International operations, per cent 24.4 19.8

Continuing Discontinued Total
Revenue, EUR millions operations operations
Finland 1) 202.6 61.1 263.7
Baltic states 2) 31.1 31.1
Russia 3) 35.7 35.7
Group 269.4 61.1 330.5
Finland, per cent 75.2 79.8
International operations, per cent 24.8 20.2

Continuing Discontinued Total
Operating profit, EUR millions operations operations
Finland 1) 0.9 7.7 8.6
Baltic states 2) 1.3 1.3
Russia 3) -1.4 -1.4
Group 0.8 7.7 8.5

Investments, 31.03.2006
gross, EUR millions Continuing Discontinued Total
operations operations
Finland 1) 9.0 9.0
Baltic states 2) 0.2 0.2
Russia 3) 5.7 5.7
Group 14.9 14.9
Finland, per cent 60.4 60.4
International operations, per cent 39.6 39.6

Continuing Discontinued Total
Assets, EUR millions operations operations
Finland 1) 524.0 524.0
Baltic states 2) 73.8 73.8
Russia 3) 87.7 22.9 110.6
Group 685.5 22.9 708.4
Finland, per cent 76.4 74.0
International operations, per cent 23.6 26.0
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 areas 1-03/2005
Continuing Discontinued Total
Sales, EUR millions operations operations
Finland 1) 234.7 96.5 331.2
Baltic states 2) 32.7 32.7
Russia 3) 30.3 6.5 36.7
Group 297.6 102.9 400.6
Finland, per cent 78.9 93.7 82.7
International operations, per cent 21.1 6.3 17.3

Continuing Discontinued Total
Revenue, EUR millions operations operations
Finland 1) 195.8 79.1 274.9
Baltic states 2) 27.8 27.8
Russia 3) 25.9 5.5 31.4
Group 249.5 84.6 334.1
Finland, per cent 78.5 93.5 82.3
International operations, per cent 21.5 6.5 17.7

Continuing Discontinued Total
Operating profit, EUR millions operations operations
Finland 1) 4.3 0.2 4.5
Baltic states 2) -0.2 -0.2
Russia 3) -3.1 0.4 -2.7
Group 1.0 0.6 1.6

Investments, 31.03.2005
gross, EUR millions Continuing Discontinued Total
operations operations
Finland 1) 4.1 1.3 5.4
Baltic states 2) 0.3 0.3
Russia 3) 2.3 0.9 3.2
Group 6.7 2.2 8.9
Finland, per cent 61.0 59.7 60.7
International operations, per cent 39.0 40.3 39.3

Continuing Discontinued Total
Assets, EUR millions operations operations
Finland 1) 487.4 112.5 600.0
Baltic states 2) 74.2 74.2
Russia 3) 70.2 10.9 81.2
Group 631.8 123.5 755.3
Finland, per cent 77.1 79.4
International operations, per cent 22.9 20.6
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 areas 1-12/2005
Continuing Discontinued Total
Sales, EUR millions operations operations
Finland 1) 1 106.8 414.1 1 520.9
Baltic states 2) 140.8 140.8
Russia 3) 143.1 46.5 189.6
Group 1 390.7 460.6 1 851.3
Finland, per cent 79.6 89.9 82.2
International operations, per cent 20.4 10.1 17.8

Continuing Discontinued Total
Revenue, EUR millions operations operations
Finland 1) 923.2 338.3 1,261.5
Baltic states 2) 119.7 119.7
Russia 3) 122.0 39.4 161.4
Group 1,164.9 377.7 1,542.6
Finland, per cent 79.3 89.6 81.8
International operations, per cent 20.7 10.4 18.2

Continuing Discontinued Total
Operating profit, EUR millions operations operations
Finland 1) 92.2 3.1 95.4
Baltic states 2) 7.3 7.3
Russia 3) -4.0 5.0 1.0
Group 95.6 8.1 103.7

Investments, 31.12.2005
gross, EUR millions Continuing Discontinued Total
operations operations
Finland 1) 31.8 2.7 34.6
Baltic states 2) 1.7 1.7
Russia 3) 15.6 5.1 20.7
Group 49.1 7.9 57.0
Finland, per cent 64.8 34.9 60.7
International operations, per cent 35.2 65.1 39.3

Continuing Discontinued Total
Assets, EUR millions operations operations
Finland 1) 489.3 98.2 587.4
Baltic states 2) 72.2 72.2
Russia 3) 79.0 22.9 101.9
Group 640.5 121.1 761.5
Finland, per cent 76.4 77.1
International operations, per cent 23.6 22.9
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 Share Treasury
in equity premium share
Group, EUR millions Equity fund fund
Equity December 31, 2004 106.8 154.8 0.0
Transfer to other funds 0.0
Cash flow hedges
Dividends
Translation differences
Profit for the period
Equity March 31, 2005 106.8 154.8 0.0
Equity Dec. 31, 2005 109.0 166.5 0.0
Cost of share issue 0.1
Dividends
Translation differences
Profit for the period
Equity March 31, 2006 109.0 166.6 0.0
* excluding deferred tax liability

Statement of changes Trans-
in equity Legal Other lation
Group, EUR millions reserve funds* reserve
Equity December 31, 2004 0.2 44.4 0.2
Transfer to other funds
Cash flow hedges -2.0
Dividends
Translation differences 0.0
Profit for the period
Equity March 31, 2005 0.2 42.4 0.2
Equity Dec. 31, 2005 0.2 43.9 0.0
Cost of share issue
Dividends
Translation differences 0.0
Profit for the period
Equity March 31, 2006 0.2 43.9 0.0
* excluding deferred tax liability

Statement of changes
in equity Retained Minority
Group, EUR millions earnings Total interest Total
Equity December 31, 2004 161.9 467.9 0.0 467.9
Transfer to other funds 0.1 0.1 0.1
Cash flow hedges -2.0 -2.0
Dividends -53.0 -53.0 -53.0
Translation differences 0.0 0.0
Profit for the period 1.2 1.2 0.0 1.2
Equity March 31, 2005 110.1 414.3 0.0 414.3
Equity Dec. 31, 2005 185.7 505.2 0.0 505.3
Cost of share issue 0.1 0.3 0.3
Dividends -59.5 -59.5 -59.5
Translation differences 0.0 0.0 0.0
Profit for the period 8.4 8.4 0.0 8.4
Equity March 31, 2006 134.7 454.4 0.0 454.4
* excluding deferred tax
liability

Contingent liabilities, 31/3/06 31/3/05 31/12/05
Group EUR millions
Mortgages on land and 1.7 1.7 1.7
buildings
Pledges 0.1 0.2 0.1
Other commitments 1.7 18.7 15.5
Total 3.5 20.6 17.3

Lease agreements on business
premises, EUR millions
Minimum rents payable on the
basis of binding lease
agreements on business
premises
Within one year 49.7 60.0 66.0
After one year 372.4 363.5 383.4
Total 422.1 423.5 449.5

Derivative instruments
Nominal value
Foreign exchange derivatives 5.3 177.0 10.4
Interest rate derivatives 35.0

Exchange rates
Country Valuutta 31/3/06 31/3/05 31/12/05

Russia RUB 33.5460 36.1500 33.9200
Estonia EEK 15.6466 15.6466 15.6466
Latvia LVL 0.6961 0.6960 0.6962
Lithuania LTL 3.4528 3.4528 3.4528

Income statement
quarterly, Q1 Q4 Q3 Q2 Q1
Group, EUR millions 2006 2005 2005 2005 2005
Continuing operations
Revenue 269.4 379.3 262.0 274.0 249.5
Other operating income 0.0 7.0 0.0 0.0 0.0
Materials and -168.7 -214.3 -155.7 -156.6 -157.0
consumables
Wages, salaries and -48.3 -56.5 -41.8 -45.6 -43.6
employee benefits
expenses
Depreciation -8.0 -8.7 -6.7 -7.3 -7.3
Other operating -43.7 -52.8 -40.2 -41.7 -40.6
expenses
Operating profit 0.8 54.0 17.5 23.0 1.0
Finance income and 0.2 -2.0 0.6 -0.5 0.2
expenses
Profit before tax 1.1 52.0 18.2 22.5 1.3
Income taxes -0.3 -14.4 -3.6 -5.6 -0.4
Profit for the period, 0.8 37.6 14.5 16.9 0.9
continuing operations
Discontinued operations
Profit for the period, 7.6 4.8 0.9 1.0 0.3
discontinued operations
Profit for the period 8.4 42.4 15.4 17.9 1.2

Earnings per share, EUR
Basic. continuing 0.02 0.70 0.27 0.32 0.02
operaions
Diluted, continuing 0.01 0.69 0.27 0.31 0.02
operations

Earnings per share, EUR
Basic, discontinued 0.14 0.09 0.02 0.02 0.00
operations
Diluted, discontinued 0.14 0.09 0.02 0.02 0.00
operations

Q1 Q4 Q3 Q2 Q1
Sales, EUR millions 2006 2005 2005 2005 2005
Department Store 235.8 344.3 228.4 244.4 207.0
Division
Hobby Hall 52.6 63.4 43.9 42.7 60.5
Seppälä 32.4 45.1 40.1 39.9 30.0
Shared 0.2 0.2 0.2 0.2 0.2
Continuing operations, 320.9 453.1 312.6 327.3 297.7
total
Discontinued operations 74.8 117.4 109.6 130.6 102.9
Group 395.7 570.5 422.3 457.9 400.6

Revenue, EUR millions
Department Store 198.5 289.0 191.9 204.8 174.3
Division
Hobby Hall 43.6 52.6 36.4 35.5 50.2
Seppälä 26.8 37.3 33.1 32.9 24.8
Shared 0.5 0.5 0.6 0.8 0.2
Continuing operations, 269.4 379.3 262.0 274.0 249.5
total
Discontinued operations 61.1 96.4 89.9 106.8 84.6
Group 330.5 475.7 351.9 380.9 334.1

Operating profit, EUR
millions
Department Store -0.1 37.8 12.1 15.1 0.2
Division
Hobby Hall 1.0 4.3 0.9 0.2 0.7
Seppälä 0.8 14.5 6.9 8.4 1.3
Shared -1.4 -7.0 -0.9 0.7 -0.1
Eliminations 0.6 4.3 -1.4 -1.5 -1.1
Continuing operations, 0.8 53.9 17.5 23.0 1.0
total
Discontinued operations 7.7 4.1 1.9 1.5 0.6
Group 8.5 58.0 19.5 24.5 1.6

This Interim Report is
unaudited.

Income statement
quarterly, Q4 Q3 Q2 Q1
Group, EUR millions 2004 2004 2004 2004
Continuing operations
Revenue 344.2 247.1 241.6 236.4
Other operating income 0.1 0.0 0.0 0.0
Materials and -192.5 -148.8 -135.0 -145.7
consumables
Wages, salaries and -53.9 -40.2 -46.0 -42.9
employee benefits
expenses
Depreciation -7.8 -7.2 -7.4 -7.0
Other operating -48.7 -37.7 -38.6 -39.3
expenses
Operating profit 41.3 13.1 14.7 1.5
Finance income and -0.2 -0.9 -0.4 0.7
expenses
Profit before tax 41.1 12.3 14.3 2.2
Income taxes -12.4 -3.5 -0.8 -0.5
Profit for the period, 28.8 8.7 13.5 1.7
continuing operations
Discontinued operations
Profit for the period, 1.0 1.3 2.8 1.5
discontinued operations
Profit for the period 29.7 10.0 16.4 3.2

Earnings per share, EUR
Basic. continuing 0.56 0.16 0.27 0.03
operaions
Diluted, continuing 0.54 0.17 0.26 0.03
operations

Earnings per share, EUR
Basic, discontinued 0.02 0.02 0.05 0.02
operations
Diluted, discontinued 0.02 0.02 0.05 0.02
operations

Q4 Q3 Q2 Q1
Sales, EUR millions 2004 2004 2004 2004
Department Store 303.1 210.3 208.1 196.3
Division
Hobby Hall 64.6 46.2 47.0 56.6
Seppälä 43.5 38.1 33.5 28.6
Shared 0.2 0.2 0.3 0.2
Continuing operations, 411.4 294.9 288.8 281.8
total
Discontinued operations 104.3 101.8 130.8 121.1
Group 515.8 396.7 419.6 402.9

Revenue, EUR millions
Department Store 254.8 177.0 174.7 165.0
Division
Hobby Hall 53.4 38.3 38.9 47.3
Seppälä 35.8 31.4 27.6 23.6
Shared 0.2 0.4 0.5 0.5
Continuing operations, 344.2 247.1 241.6 236.4
total
Discontinued operations 85.5 83.5 107.2 99.6
Group 429.7 330.6 348.8 336.0

Operating profit, EUR
millions
Department Store 36.5 10.9 11.1 3.0
Division
Hobby Hall 1.5 -2.7 -0.9 -0.7
Seppälä 8.0 5.3 4.4 -0.6
Shared -1.2 -1.1 -0.4 -0.8
Eliminations -3.5 0.7 0.5 0.5
Continuing operations, 41.3 13.1 14.7 1.5
total
Discontinued operations 1.1 1.6 3.9 2.5
Group 42.4 14.8 18.6 4.0

This Interim Report is
unaudited.

STOCKMANN plc

Hannu Penttilä
CEO

DISTRIBUTION
Helsinki Stock Exchange
Principal media

A press and analyst conference will be held today, April 26, 2006, at
14.00 at the World Trade Center, Aleksanterinkatu1 7, Helsinki.