Stockmann - Decisions of general meeting

Decisions by Stockmann’s Annual General Meeting

STOCKMANN plc, Decisions of general meeting 23.3.2017 at 16:45 EET

The Annual General Meeting of Stockmann plc, held in Helsinki on 23 March 2017,
adopted the financial statements for the financial year 1 January - 31 December
2016, granted discharge from liability to the responsible officers and, in
accordance with the proposal of the Board of Directors, resolved not to pay a
dividend for the financial year 2016.

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. A permanent Shareholders' Nomination
Board will be appointed to yearly prepare proposals on the composition and
remuneration of the Board of Directors to the Annual General Meeting, and if
necessary to an Extraordinary General Meeting.

CEO’s review

At the Annual General Meeting, Stockmann’s CEO Lauri Veijalainen gave an
overview of Stockmann’s strategy implementation and financial performance in
2016. During the year, the company withdrew from several non-core businesses,
which helped the company to reach a positive operating result after two years of
losses. The department store operations in Russia were divested on 1 February
2016 and Hobby Hall on 31 December 2016. The company now focuses on retail
operations under the Stockmann and Lindex brands and real estate business. All
options are investigated also in the future to improve profitability and value
of the company.

Stockmann’s efficiency programme had an annual cost savings target of EUR 50
million, which was achieved by the end of 2016. Additional measures launched in
summer 2016 will bring more than EUR 20 million of further savings beginning
from this year. The Stockmann Group’s positive operating result in 2016 is proof
that the chosen direction is right. Stockmann expects the Group’s adjusted
operating profit in 2017 to improve, compared with 2016.

Composition and remuneration of the Board of Directors

In accordance with the proposal of the Shareholders' Nomination Board, the
Annual General Meeting resolved that eight members be elected to the Board of
Directors. In accordance with the Nomination Board’s proposal, Kaj-Gustaf Bergh,
Jukka Hienonen, Susanne Najafi, Leena Niemistö, Michael Rosenlew, Per Sjödell
and Dag Wallgren were re-elected as members of the Board of Directors. Following
the announcement by Torborg Chetkovich that she will no longer be available as
member, Esa Lager was elected as a new Board member. 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’ fixed annual remuneration unchanged,
and the remuneration will continue to be paid mainly in shares. The members of
the Board are also paid a meeting remuneration for each Board and committee
meeting, as decided by the Annual General Meeting.

Auditors

Henrik Holmbom, Authorized Public Accountant, and Marcus Tötterman, Authorized
Public Accountant, were re-elected as regular auditors. KPMG Oy Ab, a firm of
authorised public accountants, will continue as the deputy auditor. The auditors
will be paid in accordance with approved invoices.

Organisational meeting of the Board of Directors

The Board of Directors, which convened after the Annual General Meeting, elected
Jukka Hienonen as its Chairman, and Leena Niemistö as its Vice Chairman. The
Board has assessed the independence of its members in accordance with
Recommendation 10 in the Finnish Corporate Governance Code 2015. According to
the assessment six of the members of the Board are independent of the company
(Jukka Hienonen, Leena Niemistö, Kaj-Gustaf Bergh, Esa Lager, Michael Rosenlew
and Dag Wallgren). Five of the company's board members are independent of major
shareholders (Jukka Hienonen, Esa Lager, Susanne Najafi, Leena Niemistö, and Per
Sjödell).

The Board of Directors decided to establish an Audit Committee and a
Compensation Committee among its members. Dag Wallgren was elected as Chairman
of the Audit Committee, and Esa Lager and Michael Rosenlew were elected as the
other members of the committee. Jukka Hienonen was elected as Chairman of the
Compensation Committee and Kaj-Gustaf Bergh and Leena Niemistö as the other
members of the committee.

Further information:
Jukka Naulapää, Director, Legal Affairs, tel. +358 9 121 3850

www.stockmanngroup.com

STOCKMANN plc

Lauri Veijalainen
CEO

Distribution:
Nasdaq Helsinki
Principal media