STOCKMANN plc QUARTERLY REPORT January 1 – March 31, 2007

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

Key figures
Q1/2007 Q1/2006 2006
Continuing operations

Sales EUR mill. 371.7 320.9 1 477.8
Revenue EUR mill. 311.4 269.4 1 239.6
Operating profit EUR mill. 8.2 0.8 99.9
Profit before taxes EUR mill. 8.0 1.1 99.4
Earnings per share EUR 0.11 0.02 1.39

Group total

Equity per share EUR 9.14 8.40 10.34
Cash flow from operating EUR mill. -38.6 -31.7 117.4
activities
Gearing per cent 19.7 18.4 -6.3
Equity ratio per cent 63.0 64.1 74.5
Weighted average number of thousands 55 353 54 077 54 310
shares

Return on capital employed, per cent 22.0 21.6 22.9
rolling 12 months

Financial reporting

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

Sales and result

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

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

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

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

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

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

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

Sales and earnings trend by business segment

The Department Store Division’s sales grew by 19 per cent to EUR 281.2
million. Sales in Finland were up 22 per cent. Sales in Finland were
increased substantially by running the Crazy Days campaign entirely in
March. International Operations’ sales were increased by the good like-
for-like retail performance by the department stores in Russia and the
Baltic countries, a fourth department store that was opened in Moscow in
mid-February as well as the new Bestseller stores. At the beginning of the
report period, problems were encountered in importing goods to Russia, but
they were resolved towards the end of the report period. The problems led
to a momentary shortage of goods, which slowed down sales growth. Sales
by International Operations nonetheless grew by 12 per cent, and its share
of the division’s sales was 25 per cent (26 per cent). The relative share
which International Operations occupy in the Department Store Division’s
sales, decreased in the first quarter because the Crazy Days campaign was
not run at the department stores abroad until April. The Department Store
Division’s operating result improved by EUR 7.9 million and was EUR 7.8
million (a loss of EUR 0.1 million). The trend in earnings from operations
in Finland was very profitable in the first quarter, mainly owing to the
effect of timing the Crazy Days campaign. Earnings from International
Operations were burdened by the start-up costs of the department store
opened in Moscow in February as well as by the new Bestseller stores. On
the other hand, sales and earnings at the department stores in Estonia and
Latvia were on an upward curve.

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

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

Financing and capital employed

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

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

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

Capital expenditures and current projects

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

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

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

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

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

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

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

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

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

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

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

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

Annual General Meeting

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

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

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

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

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

Shares and share capital

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

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

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

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

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

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

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

Personnel strength

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

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

Full-year outlook

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

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

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

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

Balance sheet, Group EUR millions 31.3.07 31.3.06 31.12.06
ASSETS
Non-current assets
Intangible assets 5.9 6.0 6.3
Property, plant and equipment 376.4 271.5 352.2
Available-for-sale investments 6.5 6.0 6.5
Deferred tax assets 2.5 3.4 2.5
Non-current assets, total 391.4 286.9 367.5
Current assets
Inventories 181.3 190.3 155.0
Receivables, interest-bearing 100.8 108.1 98.9
Receivables, non interest-bearing 111.3 85.7 87.0
Cash and cash equivalents 23.8 14.5 59.2
Current assets, total 417.2 398.6 400.1
Assets classified as held for sale 22.9
Assets, total 808.6 708.4 767.6
EQUITY AND LIABILITIES
Equity 509.5 454.4 571.6
Minority interest 0.0 0.0 0.0
Equity, total 509.5 454.4 571.6
Non-current liabilities, interest-bearing 43.4 13.4 23.4
Deferred taxes liabilities 26.2 26.9 26.2
Current liabilities
Current liabilities, interest-bearing 80.7 84.5
Current liabilities, non interest-bearing 148.8 126.5 146.4
Current liabilities, total 229.5 211.0 146.4
Liabilities associated with assets 2.6
classified as held for sale
Equity and liabilities, total 808.6 708.4 767.6

Equity ratio, per cent 63.0 64.1 74.5
Gearing, per cent 19.7 18.4 -6.3
Cash flow from operations per share, EUR -0.69 -0.58 2.15
Interest-bearing net debt, EUR mill. -0.5 -24.7 -134.7
Number of shares at March 31, thousands 55.855 54.483 55.662
Weighted average number of shares, 55.353 54.077 54.310
thousands
Weighted average number of shares, 55.879 54.995 55.178
diluted, thousands
Market capitalization, EUR mill. 1 826.7 1 788.1 2 028.6

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

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

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

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

Cash flow statement, Group EUR millions 1-3/2007 1-3/2006 1-12/2006
Cash flows from operating activities
Net profit for the financial year 6.1 8.4 104.7
Adjustments:
Deprecation 9.1 8.3 32.1
Other operating income -7.4 -34.4
Financial expenses 0.6 0.4 2.3
Financial income -0.4 -0.6 -1.8
Taxes paid 1.9 0.3 24.3
Other adjustments 0.8 -0.2 1.7
Changes in working capital:
Change in trade and other receivables -22.3 4.6 1.7
Change in inventories -26.3 -30.1 5.2
Change in trade payables and other -2.0 -7.9 11.2
liabilities
Interest paid -0.2 -0.7 -2.5
Interest received 0.4 0.6 1.1
Taxes paid -6.5 -7.4 -28.2
Net cash from operating activities -38.6 -31.7 117.4
Cash flows from investing activities
Investments in tangible and intangible -33.1 -13.2 -112.2
assets
Acquisition of subsidiary net cash -12.7
acquired
Disposal of subsidiaries less cash at 45.7 105.0
date of disposal
Capital expenditures on other investments -0.5
Cash from tangible assets 8.4
Cash from other investments 0.1 0.9
Dividends received 0.0 0.0 0.1
Net cash used in investing activities -33.1 32.6 -11.0
Cash flows from financing activities
Proceeds from issue of share capital 3.8 0.1 17.2
Change in short-term loans, increase (+), 80.7 51.2 -33.3
decrease (-)
Long-term loans, increase (+), decrease (- 20.0 10.0
)
Dividends paid -68.2 -56.2 -59.5
Net cash used in financing activities 36.3 -4.8 -65.6
Change in cash and cash equivalents -35.3 -3.9 40.8
Cash and cash equivalents at start of the 59.2 18.4 18.4
perod
Cash and cash equivalents at end of the 23.8 14.5 59.2
period

Income statement, 1-3/2007
Group, EUR millions Continuing Discontinued Total
operations operations
Revenue 311.4 311.4
Other operating income
Materials and consumables -191.6 -191.6
Wages, salaries and employee benefits -50.8 -50.8
expenses
Depreciation -9.1 -9.1
Other operating expenses -51.7 -51.7
Operating profit 8.2 8.2
Finance income and expenses -0.2 -0.2
Profit before tax 8.0 8.0
Income taxes -1.9 -1.9
Profit for the period 6.1 6.1

Earnings per share, EUR 0.11 0.11
Earnings per share, diluted, EUR 0.11 0.11
Operating profit, per cent 2.6 2.6
Equity per share, EUR 9.14
Return on equity, per cent, moving 12 21.2
months
Return on capital employed, per cent, 22.0
moving 12 months
Average number of employees, converted 8.259 8.259
to full-time staff
Investments 33.2 33.2

Income statement, 1-3/2006
Group, EUR 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 -48.3 -5.4 -53.7
benefits expenses
Depreciation -8.0 -0.3 -8.3
Other operating expenses -43.7 -2.6 -46.2
Operating 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 19.4
12 months
Return on capital employed, per 21.6
cent, moving 12 months
Average number of employees, 7 655 456 8 112
converted to full-time staff
Investments 14.9 14.9

Income statement, 1-12/2006
Group, EUR millions Continuing Discontinued Total
operations operations
Revenue 1 239.6 61.1 1 300.7
Other operating income 5.1 29.3 34.4
Materials and consumables -721.1 -52.5 -773.6
Wages, salaries and employee -199.3 -5.4 -204.7
benefits expenses
Depreciation -31.8 -0.3 -32.1
Other operating expenses -192.6 -2.6 -195.1
Operating profit 99.9 29.6 129.5
Finance income and expenses -0.5 0.0 -0.6
Profit before tax 99.4 29.6 128.9
Income taxes -24.2 -0.1 -24.3
Profit for the period 75.2 29.5 104.7

Earnings per share, EUR 1.39 0.54 1.93
Earnings per share, diluted, EUR 1.37 0.53 1.90
Operating profit, per cent 8.1 48.4 10.0
Equity per share, EUR 10.34
Return on equity, per cent, moving 19.4
12 months
Return on capital employed, per 22.9
cent, moving 12 months
Average number of employees, 7 923 114 8 037
converted to full-time staff
Investments 125.5 125.5

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

SEGMENT INFORMATION

Segments
Sales, EUR millions 1-3/2007 1-3/2006 Change 1-12/2006
per cent
Department Store Division 281.2 235.8 19 1 119.0
Hobby Hall 55.6 52.6 6 199.8
Seppälä 34.6 32.4 7 158.1
Shared 0.2 0.2 2 0.9
Continuing operations, total 371.7 320.9 16 1 477.8
Discontinued operations 74.8 74.8
Group 371.7 395.7 -6 1 552.6

Revenue, EUR millions 1-3/2007 1-3/2006 Change 1-12/2006
per cent
Department Store Division 236.3 198.5 19 941.3
Hobby Hall 46.2 43.6 6 165.9
Seppälä 28.7 26.8 7 130.8
Shared 0.1 0.5 -79 1.7
Continuing operations, total 311.4 269.4 16 1 239.6
Discontinued operations 61.1 61.1
Group 311.4 330.5 -6 1 300.7

Operating profit, EUR 1-3/2007 1-3/2006 Change 1-12/2006
millions per cent
Department Store Division 7.8 -0.1 79.5
Hobby Hall 1.5 1.0 49 7.1
Seppälä 0.8 0.8 1 21.1
Shared -1.8 -1.4 -8.0
Eliminations 0.0 0.6 0.2
Continuing operations, total 8.2 0.8 99.9
Discontinued operations 7.7 29.6
Group 8.2 8.5 -4 129.5

Investments,
gross, EUR millions 31.3.07 31.3.06 Change 31.12.06
per cent
Department Store Division 30.4 12.8 138 115.3
Hobby Hall 0.6 0.7 -24 3.2
Seppälä 2.0 1.2 69 6.1
Shared 0.2 0.2 9 0.9
Continuing operations, total 33.2 14.9 123 125.5
Discontinued operations
Group 33.2 14.9 123 125.5

Assets, EUR millions 31.3.07 31.3.06 Change 31.12.06
per cent
Department Store Division 633.2 485.0 31 557.9
Hobby Hall 111.6 111.1 0 104.0
Seppälä 36.3 29.1 25 38.0
Shared 27.5 60.4 -54 67.7
Continuing operations, total 808.6 685.5 18 767.6
Discontinued operations 22.9
Group 808.6 708.4 14 767.6

Non-interest-bearing 31.3.07 31.3.06 Change 31.12.06
liabilities, EUR millions per cent
Department Store Division 116.3 98.7 18 122.0
Hobby Hall 20.0 18.8 6 13.9
Seppälä 5.3 3.9 37 10.9
Shared 33.4 29.5 13 25.8
Continuing operations, total 175.0 150.8 16 172.6
Discontinued operations 2.6
Group 175.0 153.5 14 172.6

Market areas 1-3/2007
Continuing Discontinued Total
Sales, EUR millions operations operations
Finland 1) 281.4 281.4
Baltic states 2) 43.0 43.0
Russia 3) 47.3 47.3
Group 371.7 371.7
Finland, per cent 75.7 75.7
International operations, per cent 24.3 24.3

Continuing Discontinued Total
Revenue, EUR millions operations operations
Finland 1) 234.3 234.3
Baltic states 2) 36.6 36.6
Russia 3) 40.5 40.5
Group 311.4 311.4
Finland, per cent 75.2 75.2
International operations, per cent 24.8 24.8

Continuing Discontinued Total
Operating profit, EUR millions operations operations
Finland 1) 10.8 10.8
Baltic states 2) 2.5 2.5
Russia 3) -5.2 -5.2
Group 8.2 8.2
Finland, per cent 132.2 132.2
International operations, per cent -32.2 -32.2

Investments, 31.3.2007
gross, EUR millions Continuing Discontinued Total
operations operations
Finland 1) 14.3 14.3
Baltic states 2) 0.6 0.6
Russia 3) 18.3 18.3
Group 33.2 33.2
Finland, per cent 43.1 43.1
International operations, per cent 56.9 56.9

Continuing Discontinued Total
Assets, EUR millions operations operations
Finland 1) 567.3 567.3
Baltic states 2) 74.1 74.1
Russia 3) 167.3 167.3
Group 808.6 808.6
Finland, per cent 70.2 70.2
International operations, per cent 29.8 29.8
1) Department Store Divisions,
Stockmann Auto, Hobby Hall and Seppälä
2) Department Store Divisions,
Stockmann Auto, Hobby Hall and Seppälä
3) Department Store Divisions and
Seppälä

Market areas 1-3/2006
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
Finland, per cent 114.8 101.4
International operations, per cent -14.8 -1.4

Investments, 31.3.2006
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 1-12/2006
Continuing Discontinued Total
Sales, EUR millions operations operations
Finland 1) 1 123.7 74.8 1 198.6
Baltic states 2) 165.3 165.3
Russia 3) 188.8 188.8
Group 1 477.8 74.8 1 552.6
Finland, per cent 76.0 77.2
International operations, per cent 24.0 22.8

Continuing Discontinued Total
Revenue, EUR millions operations operations
Finland 1) 937.5 61.1 998.5
Baltic states 2) 140.6 140.6
Russia 3) 161.6 161.6
Group 1 239.6 61.1 1 300.7
Finland, per cent 75.6 76.8
International operations, per cent 24.4 23.2

Continuing Discontinued Total
Operating profit, EUR millions operations operations
Finland 1) 75.2 7.7 82.9
Baltic states 2) 21.0 21.0
Russia 3) 3.8 21.9 25.6
Group 99.9 29.6 129.5
Finland, per cent 75.2 64.0
International operations, per cent 24.8 36.0

Investments, 31.12.2006
gross, EUR millions Continuing Discontinued Total
operations operations
Finland 1) 64.0 64.0
Baltic states 2) 1.8 1.8
Russia 3) 59.7 59.7
Group 125.5 125.5
Finland, per cent 51.0 51.0
International operations, per cent 49.0 49.0

Continuing Discontinued Total
Assets, EUR millions operations operations
Finland 1) 594.8 594.8
Baltic states 2) 69.7 69.7
Russia 3) 103.1 103.1
Group 767.6 767.6
Finland, per cent 77.5 77.5
International operations, per cent 22.5 22.5
1) Department Store Divisions,
Stockmann Auto, Hobby Hall and Seppälä
2) Department Store Divisions,
Stockmann Auto, Hobby Hall and Seppälä
3) Department Store Divisions and
Seppälä

Statement of changes Share
in equity premium Legal
Group, EUR millions Equity* fund reserve
Equity December 31, 2005 109.0 166.5 0.2
Options exercised 0.1
Dividends
Translation differences
Profit for the period
Equity March 31, 2006 109.0 166.6 0.2
Equity December 31, 2006 111.7 183.4 0.2
Options exercised 0.5 2.6
Share bonus 0.2
Transfer to other funds 0.0
Cost of share issue
Dividends
Translation differences
Profit for the period
Equity March 31, 2007 112.2 186.2 0.2
* including share issue

Statement of changes Trans-
in equity Other lation Retained
Group, EUR millions funds** reserve earnings
Equity December 31, 2005 43.9 0.0 185.7
Options exercised 0.1
Dividends -59.5
Translation differences 0.0 0.0
Profit for the period 8.4
Equity March 31, 2006 43.9 0.0 134.7
Equity December 31, 2006 43.9 0.0 232.3
Options exercised
Share bonus 0.1
Transfer to other funds
Cost of share issue 0.5
Dividends -72.1
Translation differences 0.0 0.0
Profit for the period 6.1
Equity March 31, 2007 43.9 0.0 167.0
** excluding deferred tax liability

Statement of changes
in equity Minority
Group, EUR millions Total interest Total
Equity December 31, 2005 505.2 0.0 505.3
Options exercised 0.3 0.3
Dividends -59.5 -59.5
Translation differences 0.0 0.0
Profit for the period 8.4 0.0 8.4
Equity March 31, 2006 454.4 0.0 454.4
Equity December 31, 2006 571.6 0.0 571.6
Options exercised 3.1 3.1
Share bonus 0.3 0.3
Transfer to other funds 0.0 0.0
Cost of share issue 0.5 0.5
Dividends -72.1 -72.1
Translation differences 0.0 0.0
Profit for the period 6.1 0.0 6.1
Equity March 31, 2007 509.5 0.0 509.5

Contingent liabilities, 31.3.07 31.3.06 31.12.06
Group EUR millions
Mortgages on land and 1.7 1.7 1.7
buildings
Guarantees 1.5 1.5
Pledges 0.1 0.1 0.1
Total 3.3 1.7 3.2

Lease agreements on business
premises, EUR millions
Minimum rents payable on the
basis of binding lease
agreements on business
premises
Within one year 69.9 49.7 69.6
After one year 342.9 372.4 351.5
Total 412.8 422.1 421.1

Lease payments
Within one year 1.0 0.9 1.1
After one year 0.9 0.8 0.9
Total 1.9 1.7 2.0

Derivative instruments
Nominal value
Interest rate derivatives 5.3

Exchange rates
Country Currency 31.3.07 31.3.06 31.12.06

Russia RUB 34.6580 33.5460 34.6800
Estonia EEK 15.6466 15.6466 15.6466
Latvia LVL 0.7097 0.6961 0.6972
Lithuania LTL 3.4528 3.4528 3.4528

Income statement
quarterly, Q1 Q4 Q3 Q2
Group, EUR millions 2007 2006 2006 2006
Continuing operations
Revenue 311.4 389.6 281.1 299.5
Other operating income 0.0 0.4 0.0 4.7
Materials and consumables -191.6 -215.6 -166.1 -170.8
Wages, salaries and -50.8 -57.9 -44.2 -48.9
employee benefits expenses
Depreciation -9.1 -7.9 -7.9 -8.1
Other operating expenses -51.7 -58.1 -43.0 -47.7
Operating profit 8.2 50.5 19.8 28.7
Finance income and expenses -0.2 -0.5 0.5 -0.9
Profit before tax 8.0 50.1 20.4 27.9
Income taxes -1.9 -12.3 -5.0 -6.6
Profit for the period, 6.1 37.8 15.4 21.2
continuing operations
Discontinued operations
Profit for the period, 21.9
discontinued operations
Profit for the period 6.1 37.8 15.4 43.1

Earnings per share,
continuing operations, EUR
Basic 0.11 0.70 0.29 0.39
Diluted 0.11 0.69 0.28 0.39

Earnings per share,
discontinued operations,
EUR
Basic 0.00 -0.01 0.41
Diluted -0.01 0.00 0.40

Earnings per share, total,
EUR
Basic 0.11 0.70 0.28 0.80
Diluted 0.11 0.68 0.28 0.79

Q1 Q4 Q3 Q2
Sales, EUR millions 2007 2006 2006 2006
Department Store Division 281.2 363.4 249.0 270.8
Hobby Hall 55.6 55.5 45.5 46.2
Seppälä 34.6 45.3 40.2 40.2
Shared 0.2 0.2 0.2 0.3
Continuing operations, 371.7 464.4 334.9 357.6
total
Discontinued operations
Group 371.7 464.4 334.9 357.6

Revenue, EUR millions
Department Store Division 236.3 305.5 209.8 227.4
Hobby Hall 46.2 46.1 37.8 38.4
Seppälä 28.7 37.5 33.2 33.3
Shared 0.1 0.5 0.2 0.4
Continuing operations, 311.4 389.6 281.1 299.5
total
Discontinued operations
Group 311.4 389.6 281.1 299.5

Operating profit, EUR
millions
Department Store Division 7.8 44.3 13.1 22.2
Hobby Hall 1.5 3.4 2.1 0.6
Seppälä 0.8 7.3 5.4 7.6
Shared -1.8 -3.8 -0.9 -1.9
Eliminations 0.0 -0.6 0.1 0.2
Continuing operations, 8.2 50.6 19.8 28.7
total
Discontinued operations 21.9
Group 8.2 50.6 19.8 50.6

Income statement
quarterly, Q1 Q4 Q3 Q2
Group, EUR millions 2006 2005 2005 2005
Continuing operations
Revenue 269.4 379.3 262.0 274.0
Other operating income 0.0 7.0 0.0 0.0
Materials and consumables -168.7 -214.3 -155.7 -156.6
Wages, salaries and -48.3 -56.5 -41.8 -45.6
employee benefits expenses
Depreciation -8.0 -8.7 -6.7 -7.3
Other operating expenses -43.7 -52.8 -40.2 -41.7
Operating profit 0.8 53.9 17.5 23.1
Finance income and expenses 0.2 -2.0 0.6 -0.5
Profit before tax 1.1 52.0 18.2 22.5
Income taxes -0.3 -13.3 -4.7 -5.6
Profit for the period, 0.8 38.6 13.5 16.9
continuing operations
Discontinued operations
Profit for the period, 7.6 3.7 2.0 1.0
discontinued operations
Profit for the period 8.4 42.4 15.4 17.9

Earnings per share,
continuing operations, EUR
Basic 0.01 0.72 0.25 0.32
Diluted 0.01 0.71 0.25 0.31

Earnings per share,
discontinued operations,
EUR
Basic 0.14 0.07 0.04 0.02
Diluted 0.14 0.07 0.04 0.02

Earnings per share, total,
EUR
Basic 0.15 0.79 0.29 0.34
Diluted 0.15 0.78 0.29 0.33

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

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

Operating profit, EUR
millions
Department Store Division -0.1 37.8 12.1 15.2
Hobby Hall 1.0 4.3 0.9 0.2
Seppälä 0.8 14.5 6.9 8.4
Shared -1.4 -3.3 -1.4 -1.5
Eliminations 0.6 0.6 -0.9 0.7
Continuing operations, 0.8 53.9 17.5 23.1
total
Discontinued operations 7.7 4.1 1.9 1.5
Group 8.5 58.0 19.5 24.6

STOCKMANN plc

Hannu Penttilä
CEO

DISTRIBUTION
Helsinki Stock Exchange
Principal media

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