Stockmann - Company Announcement

Stockmann to sell Hobby Hall business to Finnish SGN Group

STOCKMANN plc, Company Announcement 28.4.2016 at 7:59 EET

In December 2014, Stockmann announced it would focus on developing its Stockmann
and Lindex brands and its real estate business. The divestment of Hobby Hall
completes Stockmann’s strategic aim to withdraw from non-core business
operations.

Stockmann has signed an agreement to sell the business operations of Hobby Hall
to the Finnish SGN Group. The transaction will be completed on 31 December 2016,
and the business will be transferred on 1 January 2017. The transaction price is
not expected to have a significant effect on Stockmann’s result. The transaction
includes Hobby Hall’s assets and liabilities and all of its business operations,
excluding logistics, as of the date of transfer. When the transaction takes
place, Hobby Hall’s sales and support personnel in all locations will be
transferred to SGN as existing employees.

“We are pleased to have found a strong, committed Finnish owner for Hobby Hall.
SGN Group wants to develop Hobby Hall as a profitable, modern e-commerce
operator. The divestment enables Stockmann to focus on its Stockmann and Lindex
brands and real estate business in line with its strategy,” says Lauri
Veijalainen, Stockmann’s interim CEO.

“Hobby Hall is a well-known brand and has a wide customer base and popular
online store. We believe that these qualities will benefit both parties when
combined with SGN Group’s strong financial standing, long-term operational focus
and expertise. To support our wholesale expertise and strong cooperation with
retailers, we want to build a multichannel operation that will consolidate its
position in people’s daily lives and in Finnish homes,” says Sam Nieminen, CEO
of SGN Group.

Stockmann has also signed an agreement to transfer Hobby Hall’s logistics
operations to Posti as of 1 May 2016. The agreement covers warehousing services
for Hobby Hall’s products, logistics services for its online store, including
deliveries and the product returns centre, and the transport of products to the
Hobby Hall store in Tammisto, Vantaa. All of Hobby Hall’s warehouse personnel
will transfer to Posti as existing employees.

Hobby Hall’s 2015 revenue was EUR 86 million and its operating result EUR -5.7
million. At the end of the year, Hobby Hall had about 340 employees, of whom
around 130 worked in warehouse operations. Stockmann will continue to report
Hobby Hall’s result in the Stockmann Retail segment in 2016. Hobby Hall’s assets
will be reported as assets available for sale on the balance sheet.

Established in 1933, SGN Group is a strong, continuously developing Finnish
family business in the commerce sector. Its areas of business include sports,
recreational and household goods, agriculture, environmental management and
industrial equipment, and snowmaking and snow-management equipment. The Group
also has significant business operations in Russia and Sweden. The SGN Group
comprises Agritek Oy, Kessu Oy, S.G. Nieminen Oy, SGN Sportia Oy, SGN Sportecom
Oy, SGN Tekniikka Oy, SSF Spraying Systems Finland Oy, Sumeko Oy, Team Sportia
AB and Truebell Finland Oy. Its net sales are approximately EUR 154 million and
it has around 200 employees. The Group’s head office is in Vantaa.
http://www.sgn.fi/

For further information, please contact:
Lauri Veijalainen, interim CEO, Stockmann, tel. +358 9 121 5062
Nora Malin, Communications Director, Stockmann, tel. +358 9 121 3558
Sam Nieminen, CEO, SGN Group, tel. +358 40 552 7040
Helena Peltola, Communications Manager, SGN Group, tel. +358 50 561 5895

www.stockmanngroup.com

STOCKMANN plc

Lauri Veijalainen
Interim CEO

Distribution:
Nasdaq Helsinki
Principal media