2010-10-27 07:00:00 CEST
2010-10-27 07:00:04 CEST
REGULATED INFORMATION
Stockmann - Interim report (Q1 and Q3)
STOCKMANN plc INTERIM REPORT 1 JANUARY - 30 SEPTEMBER 2010
STOCKMANN plc
Interim report
27.10.2010 at 8.00
STOCKMANN plc INTERIM REPORT 1 JANUARY - 30 SEPTEMBER 2010
STOCKMANN'S OPERATING PROFIT GREW SOMEWHAT
The Stockmann Group's third-quarter revenue was up by 8.1 per cent to EUR
420.7 million (EUR 389.3 million). Third-quarter operating profit was also
up, amounting to EUR 18.4 million (EUR 17.7 million). Consolidated revenue
for the report period January-September was up by 6.2 per cent to EUR
1 245.0 million (EUR 1 172.2 million). Consolidated operating profit for
January-September was up by EUR 16.0 million, to a total of EUR 40.2
million (EUR 24.3 million). The profit for the period was EUR 41.2 million
(EUR 15.1 million). Stockmann's earnings per share were EUR 0.58
(EUR 0.24).
Key figures 7-9/2010 7-9/2009 Index
Revenue EUR mill. 420.7 389.3 108
Operating profit EUR mill. 18.4 17.7 104
Profit before taxes EUR mill. 11.9 8.9 134
Earnings per share EUR 0.19 0.27* 70
1-9/2010 1-9/2009 Index 2009
Revenue EUR mill. 1 245.0 1 172.2 106 1 698.5
Operating profit EUR mill. 40.2 24.3 166 85.3
Profit before taxes EUR mill. 29.8 5.5 545 61.3
Earnings per share EUR 0.58 0.24* 145 0.82
Equity per share EUR 11.90 11.36 105 11.96
Cash flow from EUR mill. -16.4 -8.1 146.8
operating activities
Key ratios
Net gearing per cent 97.8 94.0 72.1
Equity ratio per cent 41.7 43.4 44.1
Number of shares, thousands 71 802 64 295* 65 995
wighted average,
diluted
Return on capital per cent 6.7 5.2 5.8
employed, rolling 12
months
*Adjusted for 2009
share issues
REVENUE AND EARNINGS
Since the start of 2010 Stockmann has been reporting its revenue exclusive
of value added tax (VAT), instead of including VAT in the sales figures,
in order that its reported figures are like-for-like and indicate the
actual trend regardless of changes in VAT. The figures for 2009 are also
presented exclusive of VAT.
The recovery in consumer demand, the strengthening of consumer confidence
and the measures taken by all divisions to strengthen their competitive
position were evident in the Stockmann Group's revenue (excl. VAT), which
was up by 6.2 per cent to EUR 1 245.0 million (EUR 1 172.2 million).
January-September revenue in Finland was up by 3.9 per cent to EUR 669.4
million. The Group's revenue abroad amounted to EUR 575.6 million, an
increase of 9.0 per cent. The Swedish krona, the Norwegian krone and the
Russian rouble all strengthened against the euro during the first nine
months of the year. If like-for-like exchange rates are used, the Group's
revenue abroad is on a par with the previous year. Revenue abroad
accounted for 46.2 per cent (45.1 per cent) of the Group's total revenue.
There was no other operating income in the first nine months of the year.
The Group's January-September operating gross margin grew by EUR 69.8
million, to a total of EUR 623.7 million. The relative gross margin was
50.1 per cent (47.3 per cent). In all divisions the relative gross margin
was up year on year. Operating costs increased by EUR 52.2 million and
depreciation by EUR 1.4 million.
The Group's January-September operating profit grew by EUR 16.0 million,
to a total of EUR 40.2 million.
Net financial expenses fell by EUR 8.4 million, to EUR 10.4 million (EUR
18.8 million). The decrease was attributable to the low level of interest
rates, the non-recurring foreign exchange gains and a decrease in average
debt capital. The arrangement fees for the refinanced loans added to the
net financial expenses during the report period.
Profit before taxes for the period amounted to EUR 29.8 million, which was
EUR 24.4 million more than a year earlier. Taxes for the period, a total
of EUR 11.4 million, included a decrease in deferred tax liability of EUR
16.3 million booked for the unrealized exchange rate loss on the currency
loan, and a tax accrual of EUR 4.9 million. Due to the decrease in
deferred tax liability, the total taxes for the period resulted in an
improved earnings figure. The positive tax effect on earnings was EUR 1.8
million greater than a year earlier.
The Stockmann Group's third-quarter revenue was up by 8.1 per cent to EUR
420.7 million (EUR 389.3 million). Third-quarter operating profit was also
up, amounting to EUR 18.4 million (EUR 17.7 million).
Earnings per share for the first nine months of the year amounted to EUR
0.58 (EUR 0.24) and, diluted for options, EUR 0.57 (EUR 0.24). Equity per
share was EUR 11.90 (EUR 11.36).
REVENUE AND EARNINGS PERFORMANCE BY OPERATING SEGMENT
Department Store Division
Hobby Hall's business was transferred to the Department Store Division as
of the start of 2010, and Oy Hobby Hall Ab was merged with the parent
company on 30 June 2010. The Department Store Division's January-September
figures include Hobby Hall, and so the previous year's figures used for
comparison have been adjusted accordingly. The Department Store Division's
revenue was up by 4.1 per cent to EUR 726.6 million (EUR 698.0 million).
Revenue in Finland was up by 4.4 per cent. One of the factors accelerating
the revenue growth has been the progress made in the enlargement and
transformation project at the Helsinki department store, especially the
opening of the new Delicatessen premises. If the international operations
of Hobby Hall, which were discontinued in 2009, are excluded from the
Department Store Division's like-for-like figures for 2009, the Division's
revenue shows an increase of 5.4 per cent and the euro-denominated revenue
of international operations an increase of 8.9 per cent. Revenue abroad
accounted for 24 per cent (23 per cent) of the Division's total revenue.
The growth in international operations' revenue was attributable to the
opening of the new Stockmann department store in Moscow's Golden Babylon
shopping centre on 4 March 2010 and the strengthening of the rouble
against the euro. As a result of the good level of sales and the good
stock situation, there was a clear increase in the relative gross margin
in the first nine months of the year. The Department Store Division's
operating profit was up by EUR 12.6 million, to EUR 1.9 million (EUR -10.7
million).
Third-quarter revenue was up by 9.0 per cent to EUR 235.0 million. The
operating profit was EUR 1.4 million, compared with an operating result of
EUR -2.8 million in the same period a year earlier. The expenses
associated with the opening of the enlargement of the Helsinki department
store as well as the launch of the Nevsky Centre in St Petersburg and the
Stockmann web store are burdening also the third-quarter result.
Lindex
Lindex's January-September revenue totalled EUR 413.1 million, which was
11.1 per cent more than a year earlier (EUR 371.7 million). Revenue in
Finland was up by 2.7 per cent and in other countries by 12.4 per cent.
The relative gross margin increased in January-September. Lindex's
operating profit was at the level of a year earlier.
Third-quarter revenue was up by 9.5 per cent to EUR 149.4 million. The
relative gross margin showed a year-on-year improvement. Due to the
accelerated expansion, the fixed costs grew faster than the gross margin.
Operating profit decreased to EUR 16.2 million, compared with EUR 18.1
million in the same period a year earlier.
Seppälä
Seppälä's revenue increased by 4.2 per cent year on year, to a total of
EUR 105.3 million (EUR 101.1 million). Revenue was up by 2.0 per cent in
Finland and 8.5 per cent abroad. Revenue abroad accounted for 35 per cent
(33 per cent) of Seppälä's total revenue. Revenue in Russia was up by 15
per cent. As a result of the good level of sales and the good stock
situation, there was a clear increase in the relative gross margin in the
first nine months of the year. Seppälä's operating profit grew by EUR 3.1
million, to EUR 6.2 million (EUR 3.1 million).
Seppälä's third-quarter revenue remained at the previous year's level and
was EUR 36.8 million. The relative gross margin improved. Due to the
increase in fixed costs, operating profit was down by EUR 0.6 million to a
total of EUR 2.2 million.
FINANCING AND CAPITAL EMPLOYED
Liquid assets totalled EUR 22.9 million at the end of September, as
against EUR 22.7 million a year earlier and EUR 176.4 million at the close
of 2009.
At the end of September, interest-bearing liabilities stood at EUR 850.7
million (EUR 781.9 million), of which EUR 544.1 million (EUR 780.9
million) was long-term debt. At the close of 2009, interest-bearing
liabilities amounted to EUR 789.2 million, of which EUR 786.9 million was
long-term debt. The portion of the long-term debt that falls due in
December 2011 was refinanced early, in July. EUR 650 million of the new
loan will mature in 2015, and EUR 50 million in 2013.
January-September capital expenditure amounted to EUR 107.1 million.
Net working capital amounted to EUR 149.3 million at the end of September,
as against EUR 200.3 million a year earlier and EUR 110.6 million at the
close of 2009. Dividend payouts totalled EUR 51.2 million. Stock level was
higher than in the previous year, mainly due to the expansion of store
network as well as stronger Swedish krona and Russian rouble.
At the end of September, the equity ratio was 41.7 per cent (43.4 per
cent). At the close of 2009 the equity ratio was 44.1 per cent. Net
gearing at the end of September was 97.8 per cent (94.0 per cent). At the
end of 2009 net gearing was 72.1 per cent.
The return on capital employed over the past 12 months was 6.7 per cent
(5.2 per cent in 2009). The Group's capital employed grew by EUR 107.2
million in the year since September 2009, amounting to a total of EUR
1 698.5 million at the end of September 2010 (EUR 1 640.9 million at the
close of 2009).
CAPITAL EXPENDITURE
Capital expenditure during the first nine months of the year totalled EUR
107.1 million (EUR 105.0 million).
Department Store Division
Moscow's fifth and the Group's fourteenth Stockmann department store was
opened on 4 March 2010 in the Golden Babylon shopping centre in the
Rostokino district in north Moscow. Stockmann's capital expenditure on the
department store, which has a total retail space of about 10 000 square
metres, amounts to EUR 16.0 million. During January-September, the project
required an investment of EUR 8.0 million. The start of the department
store's operation has met expectations.
The major enlargement and transformation project at the Helsinki city
centre department store is approaching completion, as planned. The project
has involved expanding the department store's commercial premises by about
10 000 square metres by converting existing premises to commercial use and
by building new space. Other elements of the project include construction
of new goods handling and servicing facilities and a car park. After the
enlargement, the Helsinki department store will have a total retail space
of about 50 000 square metres. The estimated cost of the enlargement part
of the project is about EUR 200 million, in addition to which significant
repair and renovation work has been carried out in the old property in
connection with the project. The new and remodelled premises have been
opened in stages. The entire project will be finished in November 2010.
During the first nine months of the year, the project required an
investment of EUR 16.6 million.
In 2006, Stockmann purchased a commercial plot of approximately 10 000
square metres on Nevsky Prospect, St Petersburg's high street. The plot is
located next to the Vosstaniya Square metro station and in the immediate
vicinity of the Moscow railway station. The Nevsky Centre shopping centre,
comprising about 100 000 square metres of gross floor space, is being
built for Stockmann on this plot and will be inaugurated on 11 November
2010. The Nevsky Centre will contain a total of about 50 000 square metres
of stores and offices. This will include a Stockmann department store of
about 20 000 square metres, along with other retail stores and office
premises. There will also be an underground car park. The total capital
expenditure is estimated to be about EUR 185 million. The leasing of
premises to outside parties has proceeded as planned, and all the retail
premises have been leased. During the first nine months of the year, the
project required an investment of EUR 35.7 million.
Stockmann department stores in Finland made the transfer to multichannel
trading with the launch of the Stockmann web store at the address
stockmann.com. In its early stages, the new online store's selection will
include the following department store product categories: women's, men's
and children's fashion, sport, home furnishing and electronics. The
product and service selection will be expanded during the autumn and
winter. The online store delivers products to addresses in Finland. When
creating the new online store, good use was made of the distance retailing
expertise of Hobby Hall, now part of the Department Store Division, and of
the investments made in this operation. The Stockmann web store has a
significantly different profile from that of Hobby Hall, which will
continue its operations as a separate brand. The Department Store
Division's organisation therefore includes three distinct distance
retailing brands: Hobby Hall, Stockmann and the Academic Bookstore.
In Russia, two Bestseller stores were opened and one was closed during
January-September.
One Stockmann Beauty store in Finland was closed.
In July, Stockmann purchased a property next to its Tallinn department
store for EUR 1.6 million, which will enable the department store to
expand in the future.
The Department Store Division's capital expenditure totalled EUR 84.8
million.
Lindex
In the first nine months of the year, Lindex opened six stores in the
Czech Republic, three in Russia, two in Finland and in Sweden, and one in
each of Norway, Estonia, Lithuania and Slovakia.
The company's franchising partner opened three new Lindex stores in Saudi
Arabia and one in Dubai. A new franchising partner opened its first store
in Bosnia and Herzegovina.
Lindex opened its lindex.com online store in Finland in May.
Since the end of September, Lindex has opened two stores in Norway and one
in each of Sweden, the Czech Republic and Slovakia. Lindex has closed one
store in Finland and one in Sweden since the end of September.
Lindex's capital expenditure totalled EUR 17.9 million.
Seppälä
In the first nine months of the year, Seppälä opened three stores in both
Finland and Russia, and two in Estonia.
Seppälä's capital expenditure totalled EUR 3.1 million.
Other capital expenditure
The Group's other capital expenditure came to a total of EUR 1.3 million.
NEW PROJECTS
Department Store Division
The opening of a new Stockmann department store in Ekaterinburg is planned
for March 2011. Prior to this, part of the premises reserved for the
department store is being used by chain stores of the Stockmann Group.
Stockmann has signed a contract for the enlargement of its Tampere
department store, which operates in leased premises. The enlargement will
increase the department store's retail space to 15 000 square metres, up
by about 4 000 square metres from the present 11 000 square metres. Access
will also be constructed from the department store to a car park to be
built under Hämeenkatu street. Stockmann's share of the total investment
is approximately EUR 6 million. The aim is to open the new premises by the
end of 2012.
The Department Store Division is to open 1-2 new Bestseller stores in
Russia in the latter part of the year.
When the lease for Stockmann's central warehouse in Russia, located in
Moscow, expires, the warehouse will be transferred to new leased premises
in the Moscow region at the turn of the year.
Lindex
In early December, the lindex.com online store, Lindex Shop Online, will
be opened throughout the EU. After this, it will be possible to purchase
Lindex fashion items via the internet in 27 European countries.
Lindex will continue to expand its store network and anticipates that it
will open a total of nearly 10 new stores in the Czech Republic, Slovakia,
Russia and the Nordic countries in the latter part of the year. In
addition, one franchising store is planned to be opened in Saudi Arabia
and two in Bosnia and Herzegovina.
The expansion will continue next year. A number of stores will be opened
in various countries in early 2011. In March, Lindex will open its first
store in Poland in the city of Walbrzych. Lindex currently has 15 stores
in Central Europe, and the objective is to open a total of 100 stores
within five years in Poland, the Czech Republic and Slovakia.
Seppälä
Seppälä is also continuing to expand its store network, and will open 4-6
stores in Russia in the latter part of the year.
SHARES AND SHARE CAPITAL
The company's market capitalization at the end of September was EUR
2 091.4 million (EUR 1 304.6 million). At the end of 2009 the market
capitalization stood at EUR 1 396.7 million.
During the first nine months of the year, Stockmann shares outperformed
both the OMX Helsinki index and the OMX Helsinki Cap index. At the end of
September, the price of the Series A shares was EUR 30.49, compared with
EUR 20.50 at the end of 2009, and the Series B shares were selling at EUR
28.57, as against EUR 19.00 at the end of 2009.
A total of 52 047 Stockmann plc Series B shares with a nominal value of
EUR 2 were subscribed with Stockmann Loyal Customer share options in May.
The new shares were registered in the Trade Register and became subject to
public trading alongside the old shares on NASDAQ OMX Helsinki Ltd on 30
June 2010. As a consequence of the subscriptions the share capital was
increased by EUR 104 094.
On 30 September 2010, the number of Stockmann Series A shares totalled
30 627 563 and Series B shares 40 518 437.
The company does not hold any of its own shares and the Board of Directors
has no valid authorisations to purchase shares of the company.
PERSONNEL
The Group's average personnel exceeded the figure for the same period a
year earlier. There was an increase in personnel especially in Russia,
with the opening of a new department store there and the preparations for
the opening of Stockmann's Nevsky Centre. The Group's personnel total was
also boosted by the expansion of Lindex's store network. The additional
retail space in the Helsinki department store has boosted the department
store's average number of personnel in Finland.
The Group's average number of personnel in the first nine months of the
year was 14 825, which was 239 more than for the same period in 2009.
Converted to full-time equivalents, Stockmann's average number of
employees increased by 194, to a total of 11 196.
The Group's personnel expenses amounted to EUR 259.0 million, compared
with EUR 236.6 million a year earlier. Personnel expenses accounted for
20.8 per cent (20.2 per cent) of revenue.
At the end of September 2010, Stockmann had 8 419 employees working
abroad. The corresponding figure a year earlier was 7 952 employees. The
proportion of employees working abroad was 54 per cent (55 per cent).
RISK FACTORS
No change has occurred in the general risk factors since the publication
on 11 February 2010 of the review presented in the Board Report on
Operations. Particular risks in the short term concern changes in the
shopping behaviour of consumers in Stockmann's market areas.
AB Lindex (publ) has through legal proceedings requested to be eligible to
deduct in Swedish taxation the losses of approximately EUR 70 million
incurred by the Lindex Group's German subsidiary. In 2008 the Gothenburg
Administrative Court of Appeal overturned the favourable decisions that AB
Lindex had received in the County Administrative Court, and as a
consequence Lindex was obliged to refund to the tax authorities
approximately EUR 23.8 million in taxes and interest. The taxes that were
refunded had no effect on the Stockmann Group's earnings, because
Stockmann recognised the refunded amount of tax and interest as a
reduction in Lindex's equity in the acquisition cost calculation. AB
Lindex appealed against the decision of the Administrative Court of Appeal
to the Supreme Administrative Court of Sweden, which in the summer of 2009
decided not to review the case. Further action by the company in this case
will depend on the result of the legal process described below concerning
the elimination of double taxation between AB Lindex and Lindex GmbH.
AB Lindex (publ) and its German subsidiary, Lindex GmbH, have requested
the German and Swedish competent authorities to eliminate the double
taxation arising from intra-Group transactions in the tax years 1997-2004
on the basis of the EC Arbitration Convention and the tax treaty between
Germany and Sweden. The double taxation resulted from the presumptive
income tax payable by Lindex GmbH, which meant that a total of EUR 94
million was added to the taxable income of Lindex GmbH. Depending on the
decision of the authorities, AB Lindex could receive a partial or full
refund of the approximately EUR 26 million in taxes paid on the
aforementioned income. The tax effect of the claim has not been recognised
in the income statement.
OUTLOOK FOR THE REMAINDER OF 2010
The economic environment has improved somewhat during the year. Despite
problems in a number of the national economies in southern Europe, there
has been a decrease in uncertainty on the global financial markets and the
availability of longer term financing has improved. Currency exchange rate
fluctuations are fairly strong, which reflects uncertainty about the
longer term direction of economic performance. Nevertheless, in the Nordic
countries and in Russia there are signs that consumer confidence is
strengthening and that consumer demand has started to grow. In the Baltic
countries, too, the market has begun to show moderate growth after a big
fall.
During 2009, which was a challenging year, a number of measures aimed at
improving the profitability of the business were undertaken in each
division of the Stockmann Group. As a consequence, the revenue of all
divisions has increased and the relative gross margin has improved during
the first nine months of the year. The pre-opening costs related to
bringing the new investment projects into use and the expansion of
operations have burdened the result especially in the second and third
quarters of the year. Revenue growth is expected to continue, and it is
anticipated that completion of the major investment projects and new store
openings will boost sales in the latter part of the year. The global
growth in demand has led to shortages of production capacity and raw
materials (i.e. cotton and polyester) and delays in autumn deliveries.
This has had a negative impact on sales during recent months. The company
has now specified its assessment of operating profit for the full year,
the specified assessment indicating that operating profit will be about 15-
30 per cent better than in 2009.
ACCOUNTING POLICIES
This Interim Report has been prepared in compliance with IAS 34. The
accounting policies and calculation methods applied are the same as those
in the 2009 financial statements. Since the start of 2010, Stockmann has
been reporting its revenue exclusive of value added tax (VAT), instead of
including VAT in the sales figures. The figures for 2009 are also
presented exclusive of VAT. The Department Store Division's January-
September figures include Hobby Hall, and so the previous year's figures
used for comparison have been adjusted accordingly. The figures are
unaudited.
Statement of financial position, 30.9.2010 30.9.2009 31.12.2009
EUR mill.
ASSETS
NON-CURRENT ASSETS
Intangible assets 116.5 109.7 108.3
Goodwill 768.6 686.8 685.4
Property, plant, equipment 688.5 577.8 619.5
Non-current receivables 0.5 0.1 0.6
Available for sale investments 5.0 5.0 5.0
Deferred tax asset 5.7 5.2 5.1
NON-CURRENT ASSETS 1 585.0 1 384.7 1 423.9
CURRENT ASSETS
Inventories 282.2 260.2 196.1
Interest bearing receivables 48.5 99.7 44.5
Non-interest bearing receivables 93.8 95.4 86.5
Cash and cash equivalents 22.9 22.7 176.4
CURRENT ASSETS 447.3 478.0 503.4
ASSETS 2 032.4 1 862.7 1 927.4
EQUITY AND LIABILITIES
SHAREHOLDERS' EQUITY
Equity attributable to equity holders of 846.3 807.9 850.2
the parent
Minority interest -0.0 -0.0 -0.0
SHAREHOLDERS' EQUITY 846.3 807.9 850.2
LONG-TERM LIABILITIES
Deferred tax liability 58.7 65.3 70.1
Long-term liabilities, interest-bearing 544.1 780.9 786.9
Provisions 1.4 1.5 1.5
NON-CURRENT LIABILITIES 604.2 847.6 858.5
CURRENT LIABILITIES
Short-term interest-bearing liabilities 306.7 1.0 2.3
Short term interest-free liabilities 275.2 206.1 216.4
CURRENT LIABILITIES 581.8 207.2 218.7
TOTAL EQUITY AND LIABILITIES 2 032.4 1 862.7 1 927.4
Key figures 30.9.2010 30.9.2009 31.12.2009
Equity ratio, per cent 41.7 43.4 44.1
Net gearing, per cent 97.8 94.0 72.1
Cash flow from operations per share, EUR -0.23 -0.13 2.23
Interest-bearing net debt, EUR mill. 779.4 659.6 568.3
Number of shares in the end of the 71 146 71 094 71 094
period, thousands
Weighted average number of shares, 71 115 63 870 65 676
thousands *
Weighted average number of shares, 71 802 64 295 65 995
diluted, thousands *
Market capitalization, EUR mill. 2 091.4 1 304.6 1 396.7
*) Figures 2009 have been adjusted for
2009 share issue.
STATEMENT OF CASH FLOWS, IFRS 09/2010 09/2009 12/2009
EUR millions
Cash flows from operating activities
Profit/loss for the period 41.2 15.1 54.0
Adjustments for:
Depreciation, amortisation & impairment 44.7 43.3 58.4
loss
Gains (-) and Losses (+) of disposals of 0.0 -0.3 -0.3
fixed assets and other non-current assets
Interest and other financial expenses 15.7 20.0 28.4
Interest income -5.3 -1.2 -4.4
Tax on income from operations -11.4 -9.7 7.3
Transactions without cash flow
Other adjustments 0.5 -0.6 -0.4
Working capital changes:
Increase (-) / decrease (+) in -78.0 -35.6 27.7
inventories
Increase (-) /decrease(+) in trade and -14.2 7.4 -1.8
other receivables
Increase (+) / decrease (-) in short-term 17.0 -28.0 7.2
interest-free liabilities
Interest and other financial expenses -15.4 -23.5 -32.9
paid
Interest received 0.6 1.6 2.1
Other financing items 0.0 0.0 0.0
Income taxes paid -11.7 3.2 1.4
Net cash from operating activities -16.4 -8.1 146.8
Cash flows from investing activities
Purchase of tangible and intagible assets -110.2 -110.1 -152.9
Proceeds from sale of tangible and 0.3 27.5 71.1
intangible assets
Disposal of subsidiaries, net of cash 0.0 5.6 5.6
disposed of
Proceeds from sale of investments 0.0 1.8 1.8
Dividends received 0.2 0.2 0.2
Net cash used in investing activities -109.7 -75.0 -74.3
Cash flows from financing activities
Proceeds from issue of share capital 1.5 138.0 137.0
Proceeds from sale of own shares 5.1 5.1
Proceeds from short-term borrowings 277.1 0.0 0.0
Repayment of short-term borrowings -50.0 -19.3 -19.3
Increase(+)/ decrease(-) in short-term 0.0 0.0
borrowings
Proceeds from long-term borrowings 396.0 200.0 200.0
Repayment of long-term borrowings -601.7 -216.2 -216.2
Payment of finance lease liabilities -1.1 -0.7
Dividends paid -51.2 -38.0 -38.0
Net cash used in financing activities -29.4 69.6 67.9
Net increase/decrease in cash and cash -155.5 -13.5 140.4
equivalents
Cash and cash equivalents at beginning of 176.4 35.2 35.2
the period
Cheque account with overdraft facility -0.5 -0.7 -0.7
Cash and cash equivalents at beginning of 175.9 34.5 34.5
the period
Net increase/decrease in cash and cash -155.5 -13.5 140.4
equivalents
Effects of exchange rate fluctuations on 1.5 0.7 1.0
cash held
Changes in fair value (cash and cash
equivalents)
Cash and cash equivalents at the end of 22.9 22.7 176.4
the period
Cheque account with overdraft facility -1.1 -1.0 -0.5
Cash and cash equivalents at the end of 21.8 21.7 175.9
the period
Income statement, Group, EUR 1-9/2010 1-9/2009 Change 1-12/2009
millions %
REVENUE 1 245.0 1 172.2 6 1 698.5
Other operating income 0.0 0.3 0.3
Materials and consumables -621.3 -618.3 0 -880.8
Wages, salaries and employee -259.0 -236.6 9 -327.4
benefits expenses
Depreciation and amortisation -44.7 -43.3 3 -58.4
Other operating expenses -279.9 -250.0 12 -346.8
OPERATING PROFIT 40.2 24.3 66 85.3
Finance income and expenses -10.4 -18.8 45 -24.0
PROFIT/LOSS BEFORE TAX 29.8 5.5 61.3
Tax on income from operations 11.4 9.7 -18 -7.3
PROFIT/LOSS FOR THE PERIOD 41.2 15.1 54.0
note
Other comprehensive income, 1-09/2010 1-09/2009 Change 1-12/2009
EUR mill. %
PROFIT/LOSS FOR THE PERIOD 41.2 15.1 54.0
Other comprehensive income
Exchange differences on 6.6 0.6 1.9
translating foreign operations
Cash flow hedges -2.8 -3.1 -10 -1.4
Other comprehensive income for 3.8 -2.5 0.5
the year net of tax
TOTAL COMPREHENSIVE INCOME FOR 45.0 12.6 54.5
THE YEAR
Total comprehensive income
attributable to:
Equity holders of the parent 45.0 12.6 54.5
Minority interest 0.0 0.0 0.0
Key figures 30.9.2010 30.9.2009 Change 31.12.2009
%
EPS undiluted (EUR), adjusted 0.58 0.24 145 0.82
for share issue *
EPS diluted (EUR), adjusted 0.57 0.24 144 0.82
for share issue *
Operating profit, per cent of 3.2 2.1 5.0
turnover
Equity per share, EUR 11.90 11.36 5 11.96
Return on equity, per cent, 9.7 4.7 7.0
moving 12 months
Return on capital employed, 6.7 5.2 5.8
per cent, moving 12 months
Average number of employees, 11 196 11 002 2 11 133
converted to full-time staff
Investments, EUR millions 107.1 105.0 2 152.8
*) Figures 2009 have been
adjusted for 2009 share issue.
Statement of changes in equity, Group Share Share Hedging
EUR millions 1 - 09 / 2009 capital* premium reserve**
fund
BALANCE AT BEGINNING OF THE PERIOD 123.4 186.1 1.4
Changes in equity for
Dividend distribution
New share issue 18.8
Options exercised
Share premium
Net gain/loss of own shares
Transaction costs for equity
Total comprehensive income for the year 0.0 -3.1
Other changes
Deferred taxes' share of period movements
Other changes
SHAREHOLDERS' EQUITY TOTAL 09 / 2009 142.2 186.1 -1.7
Statement of changes in equity, Group Share Share Hedging
EUR millions 1 - 09 / 2010 capital* premium reserve**
fund
BALANCE AT BEGINNING OF THE PERIOD 142.2 186.1 0.0
Changes in equity for
Dividend distribution
New share issue 0.1
Options exercised
Share premium
Sale of own shares
Transaction costs for equity
Total comprehensive income for the year 0.0 -2.8
Other changes
Deferred taxes' share of period movements
Other changes
SHAREHOLDERS' EQUITY TOTAL 09 / 2010 142.3 186.1 -2.7
*Including share issue.
** Adjusted with deferred tax liability.
Statement of changes in equity, Reserve for Other Trans
Group EUR millions 1 - 09 / 2009 invested reserves lationdiffe
unrestric-ted rences
equity
BALANCE AT BEGINNING OF THE PERIOD 124.1 44.1 -6.8
Changes in equity for
Dividend distribution
New share issue
Options exercised
Share premium 122.2
Net gain/loss of own shares
Transaction costs for equity -2.9
Total comprehensive income for the 0.0 0.6
year
Other changes
Deferred taxes' share of period
movements
Other changes
SHAREHOLDERS' EQUITY TOTAL 09 / 243.3 44.1 -6.2
2009
Statement of changes in equity, Reserve for Other Trans
Group EUR millions 1 - 09 / 2010 invested reserves lationdiffe
unrestric-ted rences equity
BALANCE AT BEGINNING OF THE PERIOD 243.3 44.1 -4.9
Changes in equity for
Dividend distribution
New share issue
Options exercised
Share premium 1.3
Sale of own shares
Transaction costs for equity
Total comprehensive income for the 6.6
year
Other changes
Deferred taxes' share of period
movements
Other changes
SHAREHOLDERS' EQUITY TOTAL 09 / 244.6 44.1 1.6
2010
Statement of changes in Retained Total Minority Total
equity, Group earnings interest
EUR millions 1 - 09 / 2009
BALANCE AT BEGINNING OF THE 216.9 689.1 0.0 689.1
PERIOD
Changes in equity for
Dividend distribution -38.0 -38.0 -38.0
New share issue 18.8 18.8
Options exercised 1.0 1.0 1.0
Share premium 122.2 122.2
Net gain/loss of own shares 5.1 5.1 5.1
Transaction costs for equity -2.9 -2.9
Total comprehensive income 15.2 12.6 0.0 12.6
for the year
Other changes
Deferred taxes' share of
period movements
Other changes 0.0 0.0 0.0
SHAREHOLDERS' EQUITY TOTAL 09 200.2 807.9 807.9
/ 2009
Statement of changes in Retained Total Minority Total
equity, Group earnings interest
EUR millions 1 - 09 / 2010
BALANCE AT BEGINNING OF THE 239.4 850.2 0.0 850.2
PERIOD
Changes in equity for
Dividend distribution -51.1 -51.1 -51.1
New share issue 0.1 0.1
Options exercised 0.7 0.7 0.7
Share premium 1.3 1.3
Sale of own shares
Transaction costs for equity
Total comprehensive income 41.2 45.0 0.0 45.0
for the year
Other changes
Deferred taxes' share of
period movements
Other changes
SHAREHOLDERS' EQUITY TOTAL 09 230.3 846.3 846.3
/ 2010
Contingent liabilites, Group 30.9.2010 30.9.2009 31.12.2009
EUR millions
Mortages on land and 201.7 201.7 201.7
buildings
Pledges 0.3 1.0 0.9
Liabilities of adjustments of 38.8 30.8 33.8
VAT deductions made on
investments to immovable
property
Total 240.8 233.5 236.4
Lease agreements on business
premises, EUR millions
Minimum rents payable on the
basis of binding lease
agreements on business
premises
Within one year 164.7 145.7 155.6
After one year 613.0 581.4 625.8
Total 777.7 727.0 781.4
Lease payments, EUR millions
Within one year 6.6 7.3 7.5
After one year 14.3 19.7 19.1
Total 20.9 27.0 26.6
Derivate contracts, EUR
millions
Nominal value
Currency derivatives 519.8 315.6 296.4
Electricity derivates 2.5 3.5 3.2
Total 522.2 319.1 299.6
Exchange rates
Country
Russia RUB 41.6923 43.9800 43.1540
Estonia EEK 15.6466 15.6466 15.6466
Latvia LVL 0.7094 0.7079 0.7093
Lithuania LTL 3.4528 3.4528 3.4528
Norway NOK 7.9680 8.4600 8.3000
Sweden SEK 9.1421 10.2320 10.2520
Segment
information, Group
EUR millions
Operating segments
Revenue 1.1.-30.9.2010 1.1.-30.9.2009 Change 1.1.-31.12.2009
%
Department Store 726.6 698.0 4 1,030.0
Division 1)
Lindex 413.1 371.7 11 527.0
Seppälä 105.3 101.1 4 139.5
Unallocated 1.5 1.9
Group 1 245.0 1 172.2 6 1 698.5
Operating profit 1.1.-30.9.2010 1.1.-30.9.2009 Change 1.1.-31.12.2009
%
Department Store 1.9 -10.7 22.8
Division 1)
Lindex 37.8 38.0 -1 62.4
Seppälä 6.2 3.1 99 8.0
Unallocated -5.7 -6.1 -7 -7.9
Eliminations
Group 40.2 24.3 66 85.3
Investments, gross 1.1.-30.9.2010 1.1.-30.9.2009 Change 1.1.-31.12.2009
%
Department Store 84.8 85.8 -1 125.7
Division 1)
Lindex 17.9 15.7 15 22.2
Seppälä 3.1 3.3 -8 4.5
Unallocated 1.3 0.2 0.4
Group 107.1 105.0 2 152.8
Assets 1.1.-30.9.2010 1.1.-30.9.2009 Change 1.1.-31.12.2009
%
Department Store 892.6 781.3 14 764.8
Division 1)
Lindex 998.1 875.2 14 870.4
Seppälä 104.8 118.1 -11 119.8
Unallocated 36.8 87.9 -58 172.3
Group 2 032.4 1 862.6 9 1 927.4
Information from
market areas
Revenue 1.1.-30.9.2010 1.1.-30.9.2009 Change 1.1.-31.12.2009
%
Finland 2) 669.4 644.0 4 948.0
Sweden and Norway 341.8 308.5 11 439.2
3)
Baltic states, 85.8 96.0 -11 129.6
Czech Republic
and Slovakia 2)
Russia and Ukraine 148.1 123.7 20 181.8
2)
Group 1 245.0 1 172.2 6 1 698.5
Finland, % 53.8 54.9 55.8
International 46.2 45.1 44.2
operations, %
Operating profit 1.1.-30.9.2010 1.1.-30.9.2009 Change 1.1.-31.12.2009
%
Finland 2) 17.4 17.4 0 54.3
Sweden and Norway 38.5 37.6 2 61.5
3)
Baltic states, -1.3 -5.3 -75 -4.4
Czech Republic and
Slovakia 2)
Russia and Ukraine -14.3 -25.4 -44 -26.0
2)
Group 40.2 24.3 66 85.3
Finland, % 43.2 71.6 63.6
International 56.8 28.4 36.4
operations, %
1) Hobby Hall has
been integrated to
Department store
division in the
beginning of year
2010.
Reference data for
year 2010 is
adjusted according
to changes in
segments
structure.
2) Department
store division,
Lindex, Hobby
Hall, Seppälä
3) Lindex
Income statement,
Group, EUR millions Q3 Q2 Q1 Q4
quarterly, EUR millions 2010 2010 2010 2009
Revenue 420.7 451.7 372.6 526.3
Other operating income 0.0 0.0 0.0 0.0
Materials and consumables -210.2 -220.2 -190.9 -262.5
Wages, salaries and employee -82.7 -90.4 -85.8 -90.8
benefits expenses
Depreciation and -15.3 -15.2 -14.2 -15.1
amortisation
Other operating expenses -94.0 -95.0 -90.8 -96.8
Operating profit (loss) 18.4 30.9 -9.2 61.0
Finance income and expenses -6.6 -3.2 -0.6 -5.2
Profit (loss) before tax 11.9 27.8 -9.8 55.8
Income taxes 1.5 -2.1 12.0 -17.0
Profit for the period 13.4 25.7 2.2 38.9
Earnings per share, EUR
Basic ** 0.19 0.36 0.03 0.58
Diluted ** 0.18 0.36 0.03 0.58
Revenue, EUR millions
Department Store Division * 235.0 265.5 226.0 332.0
Lindex 149.4 148.1 115.7 155.3
Seppälä 36.8 37.7 30.8 38.4
Unallocated -0.5 0.5 0.1 0.5
Group 420.7 451.7 372.6 526.3
Operating profit (loss), EUR
millions
Department Store Division * 1.4 8.8 -8.2 33.5
Lindex 16.2 19.5 2.1 24.4
Seppälä 2.2 4.8 -0.9 4.9
Unallocated -1.4 -2.2 -2.1 -1.7
Group 18.4 30.9 -9.2 61.0
*) Hobby Hall has been
integrated to Department
store division
Reference data for year 2009
is adjusted according to
changes in segments
structure.
**) Figures 2009 have been
adjusted for 2009 share
issue.
Income statement,
Group, EUR millions Q3 Q2 Q1 Q4
quarterly, EUR millions 2009 2009 2009 2008
Revenue 389.3 429.7 353.2 541.3
Other operating income 0.0 0.3 0.1
Materials and consumables -201.0 -220.1 -197.2 -273.5
Wages, salaries and employee -74.3 -82.6 -79.7 -92.9
benefits expenses
Depreciation and -14.0 -14.7 -14.6 -14.2
amortisation
Other operating expenses -82.3 -84.0 -83.7 -102.4
Operating profit (loss) 17.7 28.6 -22.0 58.4
Finance income and expenses -8.8 -5.1 -4.8 -12.7
Profit (loss) before tax 8.9 23.5 -26.9 45.7
Income taxes 8.0 -1.4 3.1 -25.8
Profit for the period 16.9 22.0 -23.8 19.9
Earnings per share, EUR
Basic ** 0.27 0.35 -0.38 0.32
Diluted ** 0.27 0.35 -0.38 0.32
Revenue, EUR millions
Department Store Division * 215.6 257.5 224.9 357.8
Lindex 136.5 136.5 98.6 141.0
Seppälä 36.7 35.6 28.8 42.8
Unallocated 0.6 0.1 0.8 -0.3
Group 389.3 429.7 353.2 541.3
Operating profit (loss), EUR
millions
Department Store Division * -2.8 8.4 -16.2 36.5
Lindex 18.1 19.7 0.2 20.3
Seppälä 2.9 3.0 -2.8 4.2
Unallocated -0.5 -2.5 -3.1 -2.6
Group 17.7 28.6 -22.0 58.4
*) Hobby Hall has been
integrated to Department
store division
Reference data for year 2009
is adjusted according to
changes in segments
structure.
**) Figures 2009 have been
adjusted for 2009 share
issue.
STOCKMANN
Assets
EUR mill. 30/09/2010 30.9.2009 31/12/2009
Acquisition cost at the beginning of 964.8 945.3 945.3
the period
Translation difference +/- 16.1 11.7 12.2
Increases during the period 107.1 105.0 160.9
Decreases during the period -18.3 -115.9 -153.5
Transfers between items 0.0 0.0
Acquisition cost at the end of the 1 069.7 946.1 964.8
period
Accumulated depreciation at the -237.0 -245.7 -245.7
beginning of the period
Translation difference +/- -0.9 -2.9 -3.5
Depreciation on reductions 18.0 33.3 70.6
Depreciation during the period -44.7 -43.3 -58.4
Accumulated depreciation at the end -264.6 -258.7 -237.0
of the period
Carrying amount at the beginning of 727.8 699.6 699.6
the period
Carrying amount at the end of the 805.1 687.5 727.8
period
Goodwill
EUR mill. 30/09/2010 30/09/2009 31/12/2009
Acquisition cost at the beginning of 685.4 646.5 646.5
the period
Translation difference +/- 83.2 40.3 39.0
Acquisition cost at the end of the 768.6 686.8 685.4
period
Carrying amount at the beginning of 685.4 646.5 685.4
the period
Carrying amount at the end of the 768.6 686.8 685.4
period
Total 1 573.7 1 374.3 1 413.2
Definitions to key figures:
Equity ratio, per cent = 100 x Equity + minority interest / Total assets
less advance payments received
Net gearing, per cent = 100 x Interest-bearing net financial liabilities /
Equity total
Interest-bearing net debt = Interest-bearing liabilities less cash and
cash equivalents less interest-bearing receivables
Market capitalization = Number of shares multiplied by the quotation for
the respective share series on the balance sheet date
Earnings per share, adjusted for share issues = 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)
STOCKMANN plc
Hannu Penttilä
CEO
DISTRIBUTION
NASDAQ OMX
Principal media
A press and analyst conference in Finnish will be held today 27 October
2010 at 9.00 a.m. at the Fazer restaurant F8 Easy on the 8th floor of
Stockmann's Helsinki city centre department store. Entrance
Aleksanterinkatu 52 B (on the right side of the department store's main
entrance).
NEW WEB ADDRESS FOR STOCKMANN'S INVESTOR INFORMATION
Stockmann has opened its stockmann.com webstore at www.stockmann.com. At
the same time, Stockmann's investor pages moved to the address
www.stockmanngroup.fi. The webstore also has a link to the investor pages.
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