Stockmann - Decisions of general meeting

Decisions by Stockmann’s Annual General Meeting

Helsinki, Finland, 2013-03-21 15:00 CET (GLOBE NEWSWIRE) -- STOCKMANN plc,
Decisions of annual general meeting 21.3.2013 at 16:00 EET 

The Annual General Meeting of Stockmann plc, held in Helsinki on 21 March 2013,
adopted the financial statements for the financial year 1 January - 31 December
2012, granted discharge from liability to the responsible officers and resolved
to pay a dividend of EUR 0.60 per share for the financial year 2012. The
General Meeting also decided on the composition and remuneration of the Board
of Directors and the selection and remuneration of the auditor in accordance
with the proposals presented. 

CEO's review

In his review at the Annual General Meeting, CEO Hannu Penttilä went through
main events during Stockmann's 150th anniversary year and the outlook for the
near future. In 2012 the share of the international revenue exceeded the
revenue in Finland for the first time. Operating profit of the Russian
operations became positive, even with the termination of the loss-making
Bestseller franchising included. All the department stores in Russia clearly
improved their results. Russian operations will play a key role in the Group's
earnings in the coming years. 

A strong focus on the Group's all online stores will continue in 2013. In
total, the capital expenditure during the year will be approximately EUR 60
million, i.e. on the previous year's level. The evaluation of the commercial
value of the Nevsky Centre shopping centre in St Petersburg is currently
ongoing. The aim is to resolve a possible real estate transaction during 2013.
The transaction would include the department store in St Petersburg to remain
in the shopping centre through a long-term lease agreement. 

The development of the retail market in the Nordic countries in the first
months of 2013 gives cause for concern. Stockmann's revenue has been lower than
expected, in particular in Finland, where consumer confidence and purchasing
power are at a low level. A possible new raise of the VAT in this economic
situation would cut consumers' purchasing power even further and it would have
a significant impact on employment situation in the trade sector. 

Also Stockmann has to pay special attention to the cost-effectiveness of its
operations. In order to achieve saving, both cost reductions and structural
measures are needed. The first-quarter operating result will, as in the
previous years, be negative due to normal seasonal variation. Stockmann's
target is to increase the Group's revenue for the full year, excluding the
terminated franchising operations, and to improve the operating profit. The
targets can be achieved if the markets, especially in Finland, become more
favorable than in the beginning of the year. 

Payment of dividends

The Annual General Meeting resolved that a dividend of EUR 0.60 per share be
paid for the 2012 financial year. The dividend will be paid on 18 April 2013 to
those shareholders who on the record date for the dividend payout, 26 March
2013, are entered in the shareholder register kept by Euroclear Finland Ltd. 

Composition and remuneration of the Board of Directors

The Annual General Meeting resolved, in accordance with the proposal of the
Board's Appointments and Compensation Committee, that eight members be elected
to the Board of Directors. In accordance with the Committee's proposal Rector
and Professor Eva Liljeblom, Managing Director Kari Niemistö, Charlotta
Tallqvist-Cederberg, M.Sc. (Econ.), Christoffer Taxell, LL.M., Carola
Teir-Lehtinen, M.Sc., and Managing Director Dag Wallgren were re-elected as
members of the Board of Directors. Following the announcement by the member of
the, Board Kaj-Gustaf Bergh, that he will no longer be available as a member,
Mr. Kjell Sundström, CEO of the Åbo Akademi Endowment was elected as a new
member. Mr Sundström has previously held several management positions within
the financial sector. The Board members' term of office will continue until the
end of the next Annual General Meeting. 

It was resolved to keep the Board members' remuneration unchanged, and the
remuneration will continue to be paid mainly in shares. 

Auditors

Jari Härmälä, Authorised Public Accountant was re-elected as the regular
auditor, and Anders Lundin, Authorised Public Accountant, was elected as a new
regular auditor. KPMG Oy Ab, a firm of authorised public accountants, will
continue as the deputy auditor. The auditors will be paid in accordance with
invoice. 

Organisational meeting of the Board of Directors

The Board of Directors, which convened after the Annual General Meeting,
re-elected Christoffer Taxell, LL.M., as its Chairman and Managing Director
Kari Niemistö as its Vice Chairman. The Board has assessed the independence of
its members in accordance with Recommendation 15 in the Finnish Corporate
Governance Code. According to the assessment all the eight members of the Board
elected at the Annual General Meeting on 21 March 2013 are independent of the
company. Five of the company's board members are independent of major
shareholders (Eva Liljeblom, Kari Niemistö, Per Sjödell, Kjell Sundström and
Carola Teir-Lehtinen). 

The Board of Directors elected Christoffer Taxell as Chairman of the
Appointments and Compensation Committee and Kari Niemistö, Charlotta
Tallqvist-Cederberg and Dag Wallgren as the other members of the committee. 

Further information:
Nora Malin, Director, Corporate Communications, tel. +358 9 121 3558

www.stockmanngroup.com


STOCKMANN plc

Hannu Penttilä
CEO


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