STOCKMANN plc INTERIM REPORT January 1 – June 30, 2007

THE TIMING OF CRAZY DAYS CAMPAIGN IN FINLAND AND STRONG OUTLAYS ON
FURTHERING GROWTH IN RUSSIA WEAKEN THE SECOND-QUARTER RESULT AS EXPECTED

In January-June, the Stockmann Group’s sales from continuing operations
grew by 6.5 per cent to EUR 722.4 million (EUR 678.4 million in 2006).
Profit from continuing operations before taxes was EUR 21.4 million (EUR
28.9 million). The operational result from continuing operations in
Finland and the Baltic countries improved. The costs of starting up new
units and customs clearance problems in the first part of the year
burdened earnings in Russia. The clear decrease in Hobby Hall’s April
sales owing to the adoption of a new accounting policy also affected the
result. Owing primarily to significant other operating income in the
comparison period, the entire Group’s profit before taxes decreased in the
report period. Earnings per share were EUR 0.29. The earnings estimate for
2007 is unchanged. The objective is to post improved operating profit from
continuing operations in 2007 compared with 2006.

Key figures
1-6/2007 1-6/2006 2006
Continuing operations

Sales EUR mill. 722.4 678.4 1 477.8
Revenue EUR mill. 605.6 568.9 1 239.6
Operating profit EUR mill. 22.3 29.6 99.9
Profit before taxes EUR mill. 21.4 28.9 99.4
Earnings per share EUR 0.29 0.40 1.39

Group total

Equity per share EUR 9.34 9.23 10.34
Cash flow from operating EUR mill. 2.2 23.3 117.4
activities
Gearing per cent 17.4 2.1 -6.3
Equity ratio per cent 66.7 77.3 74.5
Weighted average number of thousands 55 486 54 111 54 310
shares

Return on capital employed, per cent
rolling 12 months 16.3 26.2 22.9

Financial reporting

Stockmann adopted International Financial Reporting Standards (IFRS) on
January 1, 2005. The Interim Report has been prepared in accordance with
IAS 34 and the accounting policies and calculation methods used are the
same as those applied 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

Operating profit from continuing operations fell by EUR 7.3 million to EUR
22.3 million (EUR 29.6 million). A non-recurring capital gain of EUR 4.7
million was booked in the comparison period. Stripping out the non-
recurring item in the comparison period, earnings improved in Finland and
the Baltic countries. Consolidated earnings were burdened by the costs of
starting up a new department store in Moscow as well as by the energetic
establishment of new Bestseller stores and Seppälä stores in Russia. Hobby
Hall’s sales and earnings were weakened by the change in the way sales are
recorded, which has deferred the recording of part of sales. Furthermore,
the customs clearance problems that hampered sales in Russia in the first
part of the year caused a need for larger-than-normal discounts, thereby
cutting into the gross margin and earnings in the second quarter. The
trend in second-quarter sales and earnings was weakened by the timing of
the Crazy Days campaign, which was run entirely in March in Finland.

Stockmann’s consolidated sales, eliminating the Stockmann Auto business
for the comparison period, were up 6.5 per cent. Net of the elimination,
sales decreased by 4 per cent to EUR 722.4 million (EUR 753.3 million).
The Group’s sales abroad amounted to EUR 190.6 million, an increase of 19
per cent. Sales from continuing operations in Finland grew by 3 per cent
to EUR 531.8 million. International operations accounted for an increased
share of consolidated sales, rising from 24 per cent to 26 per cent.
Revenue was EUR 605.6 million, as against EUR 568.9 million in the
comparison period. There was no other operating income. In the comparison
period, other operating income amounted to EUR 34.0 million, consisting
mainly of capital gains on the transfer of discontinued operations.

The gross margin on the Group’s operations rose by EUR 12.0 million to EUR
249.9 million and the relative gross margin was 41.3 per cent (37.8 per
cent). The Department Store Division and Seppälä reported an improved
relative gross margin on their operations. For the Group as a whole, the
relative gross margin was improved by the discontinuance of low-margin
vehicle sales as from the beginning of March 2006.

Operating expenses increased by EUR 13.7 million and depreciation by EUR
1.2 million. Primarily owing to the impact of the EUR 34.0 million of
other income on operations during the comparison period, consolidated
operating profit was down by EUR 36.9 million to EUR 22.3 million.

Net financial income and expenses decreased by EUR 0.3 million and were
EUR 0.9 million negative (EUR 0.6 million negative).

Profit before taxes was EUR 21.4 million, down EUR 37.1 million on the
figure a year earlier. Direct taxes were EUR 5.0 million, decreasing by
EUR 2.0 million on the figure a year earlier. In the comparison period,
earnings included EUR 29.3 million of tax-free capital gains. The Group’s
second-quarter net profit was EUR 10.2 million, compared with EUR 43.1
million a year earlier.

Earnings per share in the report period were EUR 0.29 (EUR 0.95) and
diluted for options they were likewise EUR 0.29 (EUR 0.94). Equity per
share was EUR 9.34 (EUR 9.23).

Sales and earnings trend by business segment

The Department Store Division’s sales grew by 7 per cent to EUR 542.2
million. The operational result grew by 11 per cent. Sales in Finland were
up 4 per cent. 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. In Russia, the
problems encountered in goods imports in the early months of the year led
to a temporary shortfall of merchandise, slowing sales growth. The
department stores in Estonia and Latvia reported an excellent sales trend.
Sales by International Operations grew by 16 per cent and its share of the
Group’s sales rose to 28 per cent (25 per cent). The relative gross margin
improved in the report period. The Department Store Division’s operating
profit in the first half of the year came to EUR 19.3 million (EUR 22.1
million). Earnings in the comparison period include a non-recurring
capital gain of EUR 4.7 million that was booked in the second quarter.
Earnings generated by the businesses in Finland and the Baltic countries
were on a positive trend in the report period. Earnings from International
Operations were burdened by the start-up costs of the department store
that was opened in Moscow in February and the new Bestseller and Nike
stores as well as the larger-than-normal discounts in the second quarter
due to delays in customs clearance at the start of the year. Running the
entire Crazy Days campaign in March exerted a drag on the growth in second-
quarter sales and earnings in Finland. The division’s operating profit in
the second quarter was EUR 11.5 million (EUR 22.2 million).

Hobby Hall reported sales growth of 3 per cent to EUR 101.7 million (EUR
98.8 million). Sales increased in the Baltic countries, and in Finland
they remained at the same level as in the previous year. Hobby Hall’s
relative gross margin was at the level of a year earlier. Hobby Hall’s
second-quarter sales figures were affected by the new information system
that went into operation in April, whereby the recording of sales was
deferred during the change-over month. Online sales continued to grow
strongly, accounting for 60 per cent of Hobby Hall’s distance retailing in
Finland (45 per cent). Online sales were buoyant in the Baltic countries
as well, amounting to 26 per cent of Hobby Hall’s distance retailing in
the Baltic area (18 per cent). Earnings were affected by the clearly lower
sales figures in April compared with a year ago because of the adoption of
a new accounting policy. Hobby Hall’s operating profit in the first half
of the year amounted to EUR 0.5 million (EUR 1.6 million). The second-
quarter operating result was EUR 0.9 million negative (EUR 0.6 million).

Seppälä’s sales increased by 8 per cent on the same period of last year
and were EUR 78.1 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,
especially in Russia. Seppälä’s operating profit in the report period was
EUR 6.6 million (EUR 8.4 million). Second-quarter operating profit
amounted to EUR 5.8 million (EUR 7.6 million).

Financing and capital employed

Liquid assets totalled EUR 20.2 million at the end of June, as against EUR
14.8 million a year earlier and EUR 59.2 million at the end of 2006.

Interest-bearing liabilities at the end of June were EUR 110.6 million
(EUR 25.5 million), of which EUR 30.2 million consisted of long-term
borrowings (EUR 23.4 million). EUR 20.0 million of new long-term
borrowings were drawn down during the report period. Capital expenditures
amounted to EUR 63.9 million. Net working capital amounted to EUR 224.8
million at the end of June, as against EUR 245.0 million a year earlier
and EUR 194.5 million at the end of 2006. Dividend payouts totalled EUR
72.1 million. Subscriptions made by exercising the share options for the
year 2000 added EUR 3.1 million to shareholders’ equity. The equity ratio
was 66.7 per cent (77.3 per cent) at the end of June. The equity ratio at
the end of 2006 was 74.5 per cent. Gearing was 17.4 per cent at the end of
June (2.1 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 16.3 per cent
(22.9 per cent at the end of 2006). In step with the hefty capital
expenditure programme, the Group’s capital employed increased by EUR 103.6
million from June of the previous year and stood at EUR 630.9 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 63.9 million
(EUR 32.5 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 28.6
million. Stockmann has succeeded in carrying out the extensive project
without hampering the department store’s profitability. The department
store’s sales increased during the report period.

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 latter part of the year.

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 investment in the department store, which
was built in leased premises, was EUR 16.5 million, of which EUR 5.8
million was an outlay in the report period. Operations have started up
according to plan.

Five new Bestseller stores were opened in Russia in the report period: two
in St Petersburg and one store each in Moscow, Kazan and Samara. Stockmann
now has a total of 16 Bestseller stores in Russia. 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, a third store will be opened in St
Petersburg as well as one store each 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. In June, an
agreement was concluded with Technopolis Plc, under which the company will
take out a lease on the shopping centre’s approx. 4 300 square metre
office section for subletting to its customer companies. 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 construction works are under way.
Stockmann’s objective is to open the department store and commercial
centre in spring 2009. During the report period, the project required an
investment of about EUR 13.3 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. Stockmann is
engaged in negotiations on opening several new department stores in
Russia.

The Department Store Division’s capital expenditures totalled EUR 56.6
million.

Hobby Hall’s capital expenditures amounted to EUR 1.4 million. Hobby Hall
launched distance retailing in Lithuania in February and will start a
similar launch in Russia towards the end of the year. Hobby Hall is also
planning to start up online sales in Sweden during 2008. 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 5.6 million. In the report
period, Seppälä opened one store in Tampere, Finland, one in Pärnu,
Estonia, and one in Vilnius, Lithuania. In Russia, Seppälä opened six
stores: three in St Petersburg as well as one in Moscow, Samara and
Yaroslavl. Seppälä is seeking to open a total of 7 new stores in Russia
during the latter part of the year. The start-up of operations in Ukraine
is also in the pipeline, but because of the poor availability of
commercial sites, it is estimated that this will be done in 2008. Seppälä
is presently upgrading its cash register system, which went into operation
in Finland in the spring.

Other capital expenditures in the report period amounted to EUR 0.3
million.

Shares and share capital

The company’s market capitalization at the end of June was EUR 1 776.8
million (EUR 1 732.4 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 June
the stock exchange price of the Series A share was EUR 31.90, compared
with EUR 36.40 at the end of 2006, and the Series B share was selling at
EUR 31.50, 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.

Share options for 2000 were exercised in March to subscribe for 238 709
shares. Of these, 18 000 shares were entered in the Trade Register on
April 10, 2007, and 220 709 shares on May 14, 2007. They were accepted for
public trading on the Helsinki Stock Exchange together with the old shares
on April 11, 2007 and May 15, 2007. As a consequence of the subscriptions,
the share capital was increased by EUR 477 418. Following the increase,
the share capital was EUR 112 187 224.

A total of 2 500 000 new Series B shares were eligible for subscription on
the basis of the share options for 2000. During the subscription period, a
total of 2 499 800 Stockmann Series B shares were subscribed for with the
share options. The subscription period ended on April 1, 2007.

At June 30, 2007, Stockmann had 24 564 243 Series A shares and 31 529 369
Series B shares.

Stockmann held 369 560 of its own Series B shares (treasury shares) at the
end of June 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 Annual General Meeting in 2007 authorized the Board of Directors to
decide on the transfer of the company’s own Series B shares in one or more
instalments. The authorization will be valid for five years. 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
435 employees, or 441 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 379 and was 8 367.

At the end of June 2007 the number of staff working abroad was 3 976
people. At the end of June of last year Stockmann had 3 175 people working
abroad. Their proportion of the total personnel was 37 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 3-4 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 be just
over EUR 1.6 billion.

The result from continuing operations in the third quarter of 2007 is
estimated to be on a par with the previous year, and fourth-quarter
earnings are set to exceed last year’s figure.

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 still is to
post improved operating profit from continuing operations compared with
2006.

Balance sheet, Group EUR millions 30.6.07 30.6.06 31.12.06
ASSETS
Non-current assets
Intangible assets 11.2 5.9 6.3
Property, plant and equipment 392.0 278.9 352.2
Available-for-sale investments 6.5 6.0 6.5
Non-current receivables, 0.2
interest-bearing
Deferred tax assets 2.5 3.4 2.5
Non-current assets, total 412.1 294.5 367.5
Current assets
Inventories 156.2 145.7 155.0
Receivables, interest-bearing 98.5 105.0 98.9
Receivables, non interest-bearing 93.5 89.0 87.0
Cash and cash equivalents 20.2 14.8 59.2
Current assets, total 368.5 354.5 400.1
Assets, total 780.6 649.0 767.6
EQUITY AND LIABILITIES
Equity 520.3 501.8 571.6
Minority interest 0.0 0.0 0.0
Equity, total 520.3 501.8 571.6
Non-current liabilities, interest-bearing 30.2 23.4 23.4
Deferred taxes liabilities 26.2 26.9 26.2
Current liabilities
Current liabilities, interest-bearing 80.4 2.1
Current liabilities, non interest-bearing 123.5 94.8 146.4
Current liabilities, total 203.8 96.8 146.4
Equity and liabilities, total 780.6 649.0 767.6

Equity ratio, per cent 66.7 77.3 74.5
Gearing, per cent 17.4 2.1 -6.3
Cash flow from operations per share, EUR 0.04 0.43 2.15
Interest-bearing net debt, EUR mill. -8.1 -94.6 -134.7
Number of shares at June 30, thousands 56 094 54 768 55 662
Weighted average number of shares, 55 486 54 111 54 310
thousands
Weighted average number of shares, 55 752 54 867 55 178
diluted, thousands
Market capitalization, EUR mill. 1 776.8 1 732.4 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 1-6/2007 1-6/2006 1-12/2006
Cash flows from operating activities
Net profit for the financial year 16.3 51.5 104.7
Adjustments:
Deprecation 17.5 16.4 32.1
Other operating income -34.0 -34.4
Financial expenses 1.5 1.2 2.3
Financial income -0.6 -0.6 -1.8
Taxes paid 5.0 7.0 24.3
Other adjustments 1.3 0.1 1.7
Changes in working capital:
Change in trade and other receivables 0.4 19.7 1.7
Change in inventories -1.2 14.6 5.2
Change in trade payables and other -26.3 -35.9 11.2
liabilities
Interest paid -0.8 -1.4 -2.5
Interest received 0.5 0.5 1.1
Taxes paid -11.6 -15.9 -28.2
Net cash from operating activities 2.2 23.3 117.4
Cash flows from investing activities
Investments in tangible and intangible -62.2 -32.2 -112.2
assets
Acquisition of subsidiary net cash -12.7
acquired
Disposal of subsidiaries less cash at 81.6 105.0
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 0.1 0.1 0.1
Net cash used in investing activities -62.1 49.6 -11.0
Cash flows from financing activities
Proceeds from issue of share capital 5.8 4.3 17.2
Change in short-term loans, increase (+), 67.3 -31.5 -33.3
decrease (-)
Long-term loans, increase (+), decrease (- 20.0 10.0 10.0
)
Dividends paid -72.1 -59.3 -59.5
Net cash used in financing activities 21.0 -76.5 -65.6
Change in cash and cash equivalents -38.9 -3.5 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 20.2 14.8 59.2
period

Income statement, 1-6/2007
Group, EUR millions Continuing Discontinued Total
operations operations
Revenue 605.6 605.6
Other operating income
Materials and consumables -355.6 -355.6
Wages, salaries and employee benefits -103.3 -103.3
expenses
Depreciation -17.5 -17.5
Other operating expenses -106.9 -106.9
Operating profit 22.3 22.3
Finance income and expenses -0.9 -0.9
Profit before tax 21.4 21.4
Income taxes -5.0 -5.0
Profit for the period 16.3 16.3

Earnings per share, EUR 0.29 0.29
Earnings per share, diluted, EUR 0.29 0.29
Operating profit, per cent 3.7 3.7
Equity per share, EUR 9.34
Return on equity, per cent, moving 12 13.6
months
Return on capital employed, per cent, 16.3
moving 12 months
Average number of employees, converted 8 367 8 367
to full-time staff
Investments 63.9 63.9

Income statement, 1-6/2006
Group, EUR millions Continuing Discontinued Total
operations operations
Revenue 568.9 61.1 630.0
Other operating income 4.7 29.3 34.0
Materials and consumables -339.5 -52.5 -392.0
Wages, salaries and employee -97.1 -5.4 -102.5
benefits expenses
Depreciation -16.1 -0.3 -16.4
Other operating expenses -91.4 -2.6 -94.0
Operating profit 29.6 29.6 59.1
Finance income and expenses -0.6 0.0 -0.6
Profit before tax 28.9 29.6 58.5
Income taxes -6.9 -0.1 -7.0
Profit for the period 22.0 29.5 51.5

Earnings per share, EUR 0.40 0.55 0.95
Earnings per share, diluted, EUR 0.40 0.54 0.94
Operating profit, per cent 5.2 48.4 9.4
Equity per share, EUR 9.23
Return on equity, per cent, moving 23.3
12 months
Return on capital employed, per 26.2
cent, moving 12 months
Average number of employees, 7 760 228 7 988
converted to full-time staff
Investments 32.5 32.5

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 1-6/2007 1-6/2006 Change 1-12/2006
per cent
Department Store Division 542.2 506.6 7 1 119.0
Hobby Hall 101.7 98.8 3 199.8
Seppälä 78.1 72.6 8 158.1
Shared 0.4 0.5 -10 0.9
Continuing operations, total 722.4 678.4 6 1 477.8
Discontinued operations 74.8 74.8
Group 722.4 753.3 -4 1 552.6

Revenue, EUR millions 1-6/2007 1-6/2006 Change 1-12/2006
per cent
Department Store Division 455.9 425.9 7 941.3
Hobby Hall 84.4 82.0 3 165.9
Seppälä 64.8 60.1 8 130.8
Shared 0.5 0.9 -45 1.7
Continuing operations, total 605.6 568.9 6 1 239.6
Discontinued operations 61.1 61.1
Group 605.6 630.0 -4 1 300.7

Operating profit, EUR 1-6/2007 1-6/2006 Change 1-12/2006
millions per cent
Department Store Division 19.3 22.1 -13 79.5
Hobby Hall 0.5 1.6 -67 7.1
Seppälä 6.6 8.4 -21 21.1
Shared -4.0 -3.3 -8.0
Eliminations -0.2 0.8 0.2
Continuing operations, total 22.3 29.6 99.9
Discontinued operations 29.6 29.6
Group 22.3 59.1 -62 129.5

Investments,
gross, EUR millions 30.6.07 30.6.06 Change 31.12.06
per cent
Department Store Division 56.6 28.5 99 115.3
Hobby Hall 1.4 1.6 -14 3.2
Seppälä 5.6 1.8 214 6.1
Shared 0.3 0.6 -52 0.9
Continuing operations, total 63.9 32.5 97 125.5
Discontinued operations
Group 63.9 32.5 97 125.5

Assets, EUR millions 30.6.07 30.6.06 Change 31.12.06
per cent
Department Store Division 594.6 442.7 34 557.9
Hobby Hall 107.7 102.1 5 104.0
Seppälä 40.3 29.3 37 38.0
Shared 38.1 74.8 -49 67.7
Continuing operations, total 780.6 649.0 20 767.6
Discontinued operations
Group 780.6 649.0 20 767.6

Non-interest-bearing 30.6.07 30.6.06 Change 31.12.06
liabilities, EUR millions per cent
Department Store Division 89.9 80.2 12 122.0
Hobby Hall 21.2 10.7 97 13.9
Seppälä 9.3 6.4 45 10.9
Shared 29.3 24.4 20 25.8
Continuing operations, total 149.7 121.7 23 172.6
Discontinued operations
Group 149.7 121.7 23 172.6

Market areas 1-6/2007
Continuing Discontinued Total
Sales, EUR millions operations operations
Finland 1) 531.8 531.8
Baltic states 2) 88.5 88.5
Russia 3) 102.1 102.1
Group 722.4 722.4
Finland, per cent 73.6 73.6
International operations, per cent 26.4 26.4

Continuing Discontinued Total
Revenue, EUR millions operations operations
Finland 1) 443.1 443.1
Baltic states 2) 75.2 75.2
Russia 3) 87.3 87.3
Group 605.6 605.6
Finland, per cent 73.2 73.2
International operations, per cent 26.8 26.8

Continuing Discontinued Total
Operating profit, EUR millions operations operations
Finland 1) 24.3 24.3
Baltic states 2) 7.0 7.0
Russia 3) -9.0 -9.0
Group 22.3 22.3
Finland, per cent
International operations, per cent

Investments, 30.6.2007
gross, EUR millions Continuing Discontinued Total
operations operations
Finland 1) 33.5 33.5
Baltic states 2) 1.2 1.2
Russia 3) 29.2 29.2
Group 63.9 63.9
Finland, per cent 52.4 52.4
International operations, per cent 47.6 47.6

Continuing Discontinued Total
Assets, EUR millions operations operations
Finland 1) 535.6 535.6
Baltic states 2) 72.9 72.9
Russia 3) 172.1 172.1
Group 780.6 780.6
Finland, per cent 68.6 68.6
International operations, per cent 31.4 31.4
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 1-6/2006
Continuing Discontinued Total
Sales, EUR millions operations operations
Finland 1) 518.4 74.8 593.2
Baltic states 2) 75.4 75.4
Russia 3) 84.6 84.6
Group 678.4 74.8 753.3
Finland, per cent 76.4 78.8
International operations, per cent 23.6 21.2

Continuing Discontinued Total
Revenue, EUR millions operations operations
Finland 1) 432.3 61.1 493.4
Baltic states 2) 64.2 64.2
Russia 3) 72.5 72.5
Group 568.9 61.1 630.0
Finland, per cent 76.0 78.3
International operations, per cent 24.0 21.7

Continuing Discontinued Total
Operating profit, EUR millions operations operations
Finland 1) 20.1 7.7 27.8
Baltic states 2) 9.9 9.9
Russia 3) -0.4 21.9 21.5
Group 29.6 29.6 59.1
Finland, per cent 68.0 47.0
International operations, per cent 32.0 53.0

Investments, 30.6.2006
gross, EUR millions Continuing Discontinued Total
operations operations
Finland 1) 24.2 24.2
Baltic states 2) 0.5 0.5
Russia 3) 7.8 7.8
Group 32.5 32.5
Finland, per cent 74.5 74.5
International operations, per cent 25.5 25.5

Continuing Discontinued Total
Assets, EUR millions operations operations
Finland 1) 493.4 493.4
Baltic states 2) 74.1 74.1
Russia 3) 81.5 81.5
Group 649.0 649.0
Finland, per cent 76.0 76.0
International operations, per cent 24.0 24.0
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 0.6 3.5
Share bonus 0.2
Transfer to other funds
Dividends
Translation differences
Profit for the period
Equity June 30, 2006 109.5 170.2 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 June 30, 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
Share bonus 0.2
Transfer to other funds 0.0
Dividends -59.5
Translation differences 0.0 0.0
Profit for the period 51.5
Equity June 30, 2006 43.9 0.0 177.9
Equity December 31, 2006 43.9 0.0 232.3
Options exercised
Share bonus 0.2
Transfer to other funds
Cost of share issue 0.9
Dividends -72.1
Translation differences 0.0 0.0
Profit for the period 16.3
Equity June 30, 2007 43.9 0.1 177.7
** 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 4.1 4.1
Share bonus 0.4 0.4
Transfer to other funds 0.0 0.0
Dividends -59.5 -59.5
Translation differences 0.0 0.0
Profit for the period 51.5 0.0 51.5
Equity June 30, 2006 501.8 0.0 501.8
Equity December 31, 2006 571.6 0.0 571.6
Options exercised 3.1 3.1
Share bonus 0.4 0.4
Transfer to other funds 0.0 0.0
Cost of share issue 0.9 0.9
Dividends -72.1 -72.1
Translation differences 0.0 0.0
Profit for the period 16.3 0.0 16.3
Equity June 30, 2007 520.3 0.0 520.3

Contingent liabilities, 30.6.07 30.6.06 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
Total 3.2 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 68.3 65.3 69.6
After one year 337.8 341.0 351.5
Total 406.1 406.3 421.1

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

Derivative instruments
Nominal value
Interest rate derivatives 5.2

Exchange rates
Country Currency 30.6.07 30.6.06 31.12.06

Russia RUB 34.8070 34.2400 34.6800
Estonia EEK 15.6466 15.6466 15.6466
Latvia LVL 0.6963 0.6961 0.6972
Lithuania LTL 3.4528 3.4528 3.4528

Income statement
quarterly, Q2 Q1 Q4 Q3
Group, EUR millions 2007 2007 2006 2006
Continuing operations
Revenue 294.2 311.4 389.6 281.1
Other operating income 0.4 0.0
Materials and consumables -164.0 -191.6 -215.6 -166.1
Wages, salaries and -52.6 -50.8 -57.9 -44.2
employee benefits expenses
Depreciation -8.4 -9.1 -7.9 -7.9
Other operating expenses -55.1 -51.7 -58.1 -43.0
Operating profit 14.1 8.2 50.5 19.8
Finance income and expenses -0.8 -0.2 -0.5 0.5
Profit before tax 13.3 8.0 50.1 20.4
Income taxes -3.2 -1.9 -12.3 -5.0
Profit for the period, 10.2 6.1 37.8 15.4
continuing operations
Discontinued operations
Profit for the period,
discontinued operations
Profit for the period 10.2 6.1 37.8 15.4

Earnings per share,
continuing operations, EUR
Basic 0.18 0.11 0.70 0.29
Diluted 0.18 0.11 0.69 0.28

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

Earnings per share, total,
EUR
Basic 0.18 0.11 0.70 0.28
Diluted 0.18 0.11 0.68 0.28

Q2 Q1 Q4 Q3
Sales, EUR millions 2007 2007 2006 2006
Department Store Division 261.0 281.2 363.4 249.0
Hobby Hall 46.0 55.6 55.5 45.5
Seppälä 43.5 34.6 45.3 40.2
Shared 0.2 0.2 0.2 0.2
Continuing operations, 350.7 371.7 464.4 334.9
total
Discontinued operations
Group 350.7 371.7 464.4 334.9

Revenue, EUR millions
Department Store Division 219.6 236.3 305.5 209.8
Hobby Hall 38.1 46.2 46.1 37.8
Seppälä 36.1 28.7 37.5 33.2
Shared 0.4 0.1 0.5 0.2
Continuing operations, 294.2 311.4 389.6 281.1
total
Discontinued operations
Group 294.2 311.4 389.6 281.1

Operating profit, EUR
millions
Department Store Division 11.5 7.8 44.3 13.1
Hobby Hall -0.9 1.5 3.4 2.1
Seppälä 5.8 0.8 7.3 5.4
Shared -2.1 -1.8 -3.8 -0.9
Eliminations -0.1 0.0 -0.6 0.1
Continuing operations, 14.1 8.2 50.6 19.8
total
Discontinued operations
Group 14.1 8.2 50.6 19.8

Income statement
quarterly, Q2 Q1 Q4 Q3
Group, EUR millions 2006 2006 2005 2005
Continuing operations
Revenue 299.5 269.4 379.3 262.0
Other operating income 4.7 0.0 7.0 0.0
Materials and consumables -170.8 -168.7 -214.3 -155.7
Wages, salaries and -48.9 -48.3 -56.5 -41.8
employee benefits expenses
Depreciation -8.1 -8.0 -8.7 -6.7
Other operating expenses -47.7 -43.7 -52.8 -40.2
Operating profit 28.7 0.8 53.9 17.5
Finance income and expenses -0.9 0.2 -2.0 0.6
Profit before tax 27.9 1.1 52.0 18.2
Income taxes -6.6 -0.3 -13.3 -4.7
Profit for the period, 21.2 0.8 38.6 13.5
continuing operations
Discontinued operations
Profit for the period, 21.9 7.6 3.7 2.0
discontinued operations
Profit for the period 43.1 8.4 42.4 15.4

Earnings per share,
continuing operations, EUR
Basic 0.39 0.01 0.72 0.25
Diluted 0.39 0.01 0.71 0.25

Earnings per share,
discontinued operations,
EUR
Basic 0.41 0.14 0.07 0.04
Diluted 0.40 0.14 0.07 0.04

Earnings per share, total,
EUR
Basic 0.80 0.15 0.79 0.29
Diluted 0.79 0.15 0.78 0.29

Q2 Q1 Q4 Q3
Sales, EUR millions 2006 2006 2005 2005
Department Store Division 270.8 235.8 344.3 228.4
Hobby Hall 46.2 52.6 63.4 43.9
Seppälä 40.2 32.4 45.1 40.1
Shared 0.3 0.2 0.2 0.2
Continuing operations, 357.6 320.9 453.1 312.6
total
Discontinued operations 74.8 117.4 109.6
Group 357.6 395.7 570.5 422.3

Revenue, EUR millions
Department Store Division 227.4 198.5 289.0 191.9
Hobby Hall 38.4 43.6 52.6 36.4
Seppälä 33.3 26.8 37.3 33.1
Shared 0.4 0.5 0.5 0.6
Continuing operations, 299.5 269.4 379.3 262.0
total
Discontinued operations 61.1 96.4 89.9
Group 299.5 330.5 475.7 351.9

Operating profit, EUR
millions
Department Store Division 22.2 -0.1 37.8 12.1
Hobby Hall 0.6 1.0 4.3 0.9
Seppälä 7.6 0.8 14.5 6.9
Shared -1.9 -1.4 -3.3 -1.4
Eliminations 0.2 0.6 0.6 -0.9
Continuing operations, 28.7 0.8 53.9 17.5
total
Discontinued operations 21.9 7.7 4.1 1.9
Group 50.6 8.5 58.0 19.5

STOCKMANN plc

Hannu Penttilä
CEO

DISTRIBUTION
OMX Nordic Exchange Helsinki
Principal media

A press and analyst conference will be held today, August 9, 2007, at
14.00 at the World Trade Center, Aleksanterinkatu 17, Helsinki.