Stockmann - Decisions of general meeting

Decisions by Stockmann’s Annual General Meeting

Helsinki, Finland, 2014-03-18 15:45 CET (GLOBE NEWSWIRE) -- STOCKMANN plc,
Decisions of annual general meeting 18.3.2014 at 16:45 EET 

The Annual General Meeting of Stockmann plc, held in Helsinki on 18 March 2014,
adopted the financial statements for the financial year 1 January - 31 December
2013, granted discharge from liability to the responsible officers and resolved
to pay a dividend of EUR 0.40 per share for the financial year 2013. 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

At the Annual General Meeting, CEO Hannu Penttilä gave an overview of
Stockmann's earnings performance and of the key events of his period as CEO
since 2001. The development trend was positive up to 2008, and during this time
Stockmann made three major capital expenditure decisions: the enlargement of
the Helsinki city centre department store, the construction of the Nevsky
Centre shopping centre in St Petersburg and the acquisition of the Swedish
fashion chain Lindex. 

The Nevsky Centre has evolved well, and its rental income - largely tied to the
euro - has also acted as protection against the weakened Russian rouble.
Lindex, in turn, has brought the Group a new, profitable business from Western
markets and balanced out the risks of operating in Russia. In 2013 the fashion
chain again posted the Group's best earnings performance. Lindex is also
developing into a global brand, a good example of which is its expansion into
China in autumn 2014. At the Helsinki city centre department store, the
original growth targets that were set have not been met in full, due mainly to
the decline in general consumption as a result of the financial crisis. The
department store has nevertheless defended its position amid the tougher
competition and has posted a good level of earnings despite the fall in
profitability at the other department stores in Finland. 

The slowdown in the economy in general is a critical factor affecting
Stockmann's future development. The Group's cost structure must be brought into
line with low or negative growth by increasing operating efficiency through the
use of new information systems, the centralised distribution centre and other
improvements. Earnings performance in 2013 would have been considerably weaker
without the cost savings already achieved. In maintaining growth, it will be
essential to continue developing digital services and systems, especially the
online stores and the multichannel approach. More efficient use of space must
also be achieved in existing stores. There is no need for any major capital
expenditure on new retail space. 

In terms of the Group's strategy, Russia is in a key position. A substantial
weakening in the value of the rouble, a decline in the purchasing power of
Russian consumers, economic sanctions imposed on Russia and possible counter
measures will force Stockmann to carefully weigh up the future strategic
options for the entire company. 

The sales figures for the current year so far have been very poor, but there
has been a clear improvement in March. The Ukraine crisis is reducing the
prospects for forecasting the state of the economy. Stockmann is monitoring
economic developments and will update its guidance regarding the Group's
earnings performance for 2014 if necessary. 

Payment of dividends

The Annual General Meeting resolved that a dividend of EUR 0.40 per share be
paid for the 2013 financial year. The dividend will be paid on 16 April 2014 to
those shareholders who on the record date for the dividend payout, 21 March
2014, 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.), Managing Director Per Sjödell, Managing
Director Kjell Sundstöm , 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 chairman of the board, Christoffer Taxell, LL.M., that
he will no longer be available as a member, CEO of the Föreningen
Konstsamfundet, Kaj-Gustaf Bergh, was elected as a new member. Mr Bergh has
been a member of the Stockmann board between 2007 and 2013. 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 and Anders Lundin, Authorised Public
Accountant were re-elected as the regular auditors, and. 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,
elected Managing Director Kaj-Gustaf Bergh 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 18 March 2014 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 Kaj-Gustaf Bergh 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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