ikea group yearly summary 2015,pdf

8/17/2019 IKEA Group Yearly Summary 2015,PDF

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“IKEA is different from other companies I’ve workedHwang, who joined IKEA Korea in 2014 as a nationaIKEA Indirect Material Services.

“Other employers don’t let you be different, which mato be innovative or to respond to customer needs. Here lenged to be different, to step out of my comfort zone.

That’s one of the key strengths of the company. It’s howdifferent ways of doing things and offer a better service t

Seok aims to make the most of the opportunity and to a senior leader: “I want to develop as a person and leadership skills. My co-workers have been a great susearching for ways of doing things differently. And ththe more I want to be an ambassador and spread the IK

Seok HwangNational Purchaser,IKEA Indirect MaterialServices, South Korea

“We dare to be different”

Our rootsOur roots lie in the rugged landscape ofSmåland in Southern Sweden, where IKEA wasfounded seven decades ago. Life here wasn'talways easy. To make ends meet people had tobe resourceful, work hard together and make alot out of a little. This heritage formed our busi-ness idea and although the IKEA Group is nowa global company, our values remain the same.

Going forward, it is our culture of enthusiasm,togetherness and willpower that drives us toconstantly improve our way of working.

In everything we do, we focus on achievingour vision: to create a better everyday life forthe many people. And all around the worldco-workers who share our values make IKEAwhat it is today and will be tomorrow.

“I’m still inspired by the IKEA vision” “When I started I was amazed by the IKEA culture, like simplicity,honesty and straight-forwardness,” says Urszula Wilczak, the rstcashier hired when IKEA opened its rst store in Poland 25 yearsago. “It was fantastic to work in a company where values wereimportant, and to see that these values were not onl y talked about,but they were lived by every day – like when I watched our storemanager work hand in hand with us on the sales oor. This humanpart of the company is something I really believe in, and it is i n linewith my own values.”

For Urszula, the iconic stone wall in Småland is a symbol ofthe simplicity, hard work and beauty that IKEA stands f or. “At IKEAwe dare to try new things and we are allowed to make mistakeswhile trying,” she says.

“I am really grateful for all the fantastic, diverse, supportivepeople I’ve met at IKEA. People who share my values, people I’velearned from, and people I have helped to develop. I feel lucky –I’ve never had a dull moment to think about changing companies.I have been part of a fantastic IKEA journey.”

Urszula WStore ManaIKEA Targ

THE STONE WALL – a symbol for IKEAWhere we come from, people used the countless stones they cleared to grow crops, to buildwalls around their farmlands as a way of keeping the animals out. This thriftiness and inno-vation perfectly symbolises the IKEA spirit today: turning problems into possibilities.


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2 | THE IKEA VISION A

3 | OUR ROOTS

5 | A MESSAGE FROM PE

6 | IKEA GROUP AT A GL

7 | HIGHLIGHTS OF THE

10 | SUSTAINABLE GROW

15 | DEMO CRATIC DESIGN

20 | A GREAT PLACE TO W

25 | PEOPLE & PLANET PO

30 | FINANCE

35 | GROUP MANAGEMEN

The nancial year 2015 (referredto as FY15) of the IKEA Group ocompanies (INGKA Holding B.Vand its controlled entities) refersto the period between 1 Septemb2014 and 31 August 2015.

The IKEA Group franchises theretail system and methods from IKEA Systems B.V. in the NetheInter IKEA Systems B.V. is the oof the IKEA Concept and is the wwide IKEA franchisor.

Contents


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Thanks to all our f antastic co-workers, we’ve hadanother year of strong growth and I am very happyto see the good steps we are taking to ful ll ourstrategy “Growing IKEA Together – 2020”. Now, halfway through the journey, much has been accom-plished and by working together, we will continue tooffer our customers improved products and a betterexperience.

Sales (translated into Euro) increased by 11.2 %to € 31.9 billion and together with the rental incomefrom our shopping centre business, total revenueincreased by 11.5 % to€ 32.7 billion. Most of the growth came from com-parable stores, but also from reaching more peoplethrough new stores and services, from expandingonline and by creating meeting places for the futurein our shopping centres.

By investing responsibly, we have reached impor-tant milestones and I’m really proud of our deter-mination to make more sustainable products andsolutions affordable and available. In 2012 we decid-

ed to switch our entire l ighting range to LED, whichwe succeeded to do in September 2015, enablingmillions of households to save energy and money ontheir energy bills. We have decided to go “all-in” totackle climate change. As an example, IKEA Groupand IKEA Foundation committed to a total of € 1billion for climate action, consisting of € 600 millionby IKEA Group f or investment in renewable energy,building on the € 1.5 billion invested since 2009, and€ 400 million by IKEA Foundation to support commu-nities most impacted by climate change.

We are in a good place for the future, always on theway. Together we build a better IKEA, taking on chal-lenges and opportunities that lie ahead, continuing tobe a positive force in society by demonstrating socialcommitment and growing in a sustainable way.

Peter Agnefjäll,President and CEO, IKEA Group

» We are in a good place for the future,always on the way. Together we builda better IKEA, taking on challengesand opportunities that lie ahead. «

Together we build a better IKEA

P E T E R


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IKEA GROUPAT A GLANCEFY15

48 %Female managers

We want a workplace where 50 %of leadership positions are held bywomen and 50 % by men. Today, more than half of ourco-workers are women, as are48 % of our managers and 33 % ofGroup Management.

54 millionVisits to the catalogue app

An increase of 17 % comparedto FY14.

For climate action

Made up of an IKEA Group com-mitment of € 600 million for in-vestment in renewable energy,building on the € 1.5 billion invest -ed since 2009, and a € 400 millioncommitment from the IKEA Foun-dation, to support communitiesmost impacted by climate change.

€ 1 billion

Total sales FY15

Total sales translated into Euro in-creased by 11.2 % to € 31.9 billion.

€ 31.9 billion

F Y0 5 F Y1 4 FY 1514.9 28.7 31.9

Billions of Euros

Store visits

An increase of 7.7 %compared to FY14.

771 million

Shopping centre visitsto our 65 retail destinations.

450 million

IKEA Group stores

We opened 13 new storesin 9 countries.

We opened three new pick-up andorder points – in Spain, Norwayand Finland – and entered a new

market: South Korea.

*There are also more than 40 IKEA storesoperated by franchisees outside the IKEA Group.

328

FY 05 FY 14 F Y1 5196 315 328

Number of IKEA Group stores*

9,500

All-in for moresustainable sources

Now all of the cotton we use forour products comes from moresustainable sources 1.

In FY15, 50 % of our woodcame from more sustainablesources 2, and we are aiming for100 % by 2020.

Products acrossthe IKEA range

Every year we renew our range,launching approximately 2,500new products, designed by our in-house and contracted designers.

Bed &Bath

With our focus on "Bed & Bath"we provided the many people withsolutions for a better start, andend, to their day.

978Suppliers

By the end of FY15 we had 978home furnishing suppliers in 50countries. We form long-termpartnerships with suppliers:on average 11 years.

Operations in 43 countries

In addition to our 328 stores in 28countries, at the end of FY15 wehad 27 Trading Service Of ces in23 countries, 33 Distribution Cen -

tres and 15 Customer DistributionCentres in 17 countries, and 43IKEA Industry production units in11 countries.

IKEA FooSales at our resttros, Swedish Fco-worker resta

€ 1.6

Co-workers

RETAIL 116,500INDUSTRY20,500RANGE &SUPPLY 18,000

155,000

Net

An increase of 5to FY14.

€ 3.5

1 Cotton from more sustainable sourcesincludes cotton grown to the Better CottonStandard; by farmers working towards BetterCotton; and more sustainable cotton from theUSA (such as the ‘e3 Cotton Program’).2 More sustainable sources for wood are currentlyde ned as FSC™-certi ed or recycled wood.

€ 1 billionOnline sales

across 13 countries

1.9 billionVisits to IKEA.com

An increase of 21 % comparedto FY14.

I K E A G R O U P A


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HIGHLIGHTSOF THE YEAR

CELEBRATING STREET ART

We celebrated street art in our "Art event 2015” andmade the work of 12 international street artists availa-ble for our customers. This brought street art atan affordable price from various locations aroundthe world into the homes of the many people.

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MAKING LIFE SIMPLERWITH CORDLESS CHARGIN

Our new cordless charging solutions were duced in our stores in April 2015. The “Hcollection’s beautiful and functional homsuch as bedside tables, lamps and desks dcharging spots for mobile phones and tab

HEALTHIER, MORE SUSTAINABLEVEGGIE BALLS

With our new Veggie balls, we are offering an even wid-er variety of healthier and more sustainable foodin our restaurants and bistros. And with a carbonfootprint of just 5 % of that of traditional meatballs,they are better for the planet too.

H I G H L I G H T S O


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http://lifeathome.ikea.com/food/


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FOR US, GROWTH IS CLOSELY LINKED TO UNDERSTANDING PEOPLE’S LIVES AT HOME. WE IMPROVE OURKNOWLEDGE WITH CONSUMER RESEARCH AND BY VISITING CUSTOMERS IN THEIR HOMES TO SEE HOWTHEY LIVE. THESE INSIGHTS ARE USED TO IMPROVE OUR RANGE AND SERVICES, AND TO DECIDE ONLONG-TERM INVESTMENTS IN SUSTAINABLE GROWTH.

With people and their homes atheart, we look into global trendsand always ask ourselves: “Howdo people live today, and howwill they live tomorrow?” Insome parts of the world, manyof us will soon be living in bigcities, in smaller homes with-out our own cars. We will livelonger, and more of us will livealone or with many generationsall in one household.

As part of our constant re-search to improve our under-standing of how people live,we visit thousands of homesaround the world every year.By better understanding ourcustomers and involving themin our product developmentprocess, we can make productsand solutions that they reallywant and need. And by contin-ually exploring new ways to usematerials and more effectiveproduction techniques, we are

able to make better and moreaffordable products.We use the same approachwhen we develop our yearlythemes. The aim for last year’stheme, ”Bed & Bath”, was toprovide our customers withbetter solutions for how theycould have a better start, andend, to their day. With theinsights from our research weworked with partners through-out our whole value-chain,which enabled us to offer newand improved bedroom andbathroom products and solu-tions – a signi cant contributorto our growth in FY15.

With 328 stores in 28 coun-tries we are still small in mostmarkets, and we see manyopportunities to grow. Our long-term thinking means we canmake important investments inthe things our customers wantand expect from us, now and

in the future. For example, ournew store formats and servicesmake it easier for customersto visit IKEA by public trans-port, collect products near theirhomes, or have them delivered.We want to be accessible topeople whenever and whereverthey want, so we continue todevelop our online platforms fora better shopping experience.In addition, we keep makinginvestments across our valuechain to enable us and our cus-tomers to have a positive im-pact on people and the planet.

By collaborating with custom-ers, suppliers, NGOs, govern-ments and other partners, wecan develop a much deeperunderstanding of what they willneed from us in the future. Weknow that however much wegrow, our success will come fromour focus on people, their homesand making their life better.

Creating sustainable growth

billionIn FY15 our sales grew to € 31.9 billion,up 11.2 % compared to FY14.

31.9

S U S T A I N A B L


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We want to be even more acces-sible to the many people. Thismeans working hard to ensurewe make it easier for customersto shop with us, wherever andwhenever they want to visit our

stores and shopping centres,or our website and apps. Forexample, our pick-up and orderpoints make shopping with usmore convenient for people wholive far from a store or those

who don’t have a car. And byexpanding our shopping centres,we are creating opportunities tomeet more people.

Growing IKEA andreaching more customers

New stores in FY15• Kansas City, Merriam, US• Wuhan, China• Seoul, South Korea• Zwolle, the Netherlands• Hamar, Ringsaker, Norwa• Bremerhaven, Germany• Sydney, Marsden Park, A• Hangzhou, China• Mulhouse, Morschwiller• Bydgoszcz, Poland• Kaiserslautern, Germany• Bayonne, France• Xi’an, China

ONLINEOnline sales through our website and apps exceededEUR 1 billion in FY15.

Currently, we offer online shopping in 13 of our 28retail countries. We are continually exploring howwe can expand and improve the ways our custom-ers can nd out about our products and be inspiredby our range through digital channels, such as ourwebsite, apps and catalogue.

SHOPPING CENTRESWe now operate 40 shopping centres and 25 retailparks, and we have 20 projects in the pipelineacross several markets.

These family-friendly shopping centres all have anIKEA store as one of the main attractions. The LIVATcentre, adjacent to the IKEA Wuhan store in China,had more than 5 million visits from its opening on 30April to the end of August 2015.

PICK-UP AND ORDER POINTSOur three new pick-up and order points in Spain,Norway and Finland enable customers to see andbuy selected products from our range, as well ascollect pre-ordered purchases.

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LIFE AT HOME CAN BE VERY DIFFERENT FOR OUR CUSTOMERS AROUND THE WORLD. WE ARE CONSTANTLY LEARNINGABOUT THEIR NEEDS AND DREAMS TO PROVIDE MORE RELEVANT PRODUCTS AND SOLUTIONSFOR A BETTER LIFE AT HOME.

Life at home can be very differ-ent for our customers around theworld. But some things are thesame: home is a place to sleep,eat and store things. Through ex-tensive research – including visit-ing homes and interviewing cus-tomers – we discover even moreabout how people live, and someof the ndings are published inour "Life at home" report.

Last year we learned that thebedroom is the place where wecontemplate our day and rechargefor the next. And the bathroomcan be a hectic crossroads, often

meeting many different needswithin one household. These areimportant spaces in every home,no matter how big or small, orwhere in the world. That is why inFY15 we focused on the bedroomand bathroom – where every daystarts and ends, and where peoplecan be private, rest and relax.

We further developed our rangeof products for these areas,including new bedroom series,bathroom accessories and textilesto provide more space, storageand comfort. We also rebuilt theroom sets in most of our stores to

ensure they more closely re ect -ed real life for households in thelocal market. Co-workers acrossevery part of the IKEA Group hadan important part to play. Withextra training and more co-work-ers available in the bed and bathareas of our stores, we providedvisitors with further informationabout improved products, like ournew mattresses and quilts for agood night’s sleep. By workingtogether, we exceeded our salestarget while enabling millions ofcustomers to update and improvetheir bedrooms and bathrooms.

From research on life at home

to products in stores

million mattressesWe sold enough mattressesfor 8.6 million people to get agood night’s sleep, along with26 million pillows.

8.6

million cataloguesWith 213 million copies

printed in 32 languages,we brought inspiration andideas to millions of house-holds around the world.

213 “The Swedish word KRAFTSAcentrating everyone’s efforts andtogether, to get results. This wasgot all of us at IKEA Spain excimaking our ’Bed and Bath’ camsuccess.

Of course, we started with theTaking all our insights from the research, and conducting our owand home visits, we made sure wstood where we could make lifecreated inspiring room sets and stores to give visitors the ideas aneeded, including a complete seto support the total shopping expwas critical because we had learservices were very important to By responding to their feedbackproducts and solutions even moaffordable for consumers facingtimes in Spain.

Again, our co-workers were thmade a special effort to create bmunication and training to makeco-worker could play their part.the project together from the stameant we could achieve a lot. I’the KRAFTSAMLA spirit is he

Lidia Reixach,Sales Leader Bathroom,IKEA Spain

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Purchasing value is the total volume of home furnishingarticles purchased from suppliers. It includes both ourown IKEA Industry production units and external suppliers.

It takes a well-planned globalnetwork to manufacture anddistribute IKEA products in anef cient and cost-effective way.Each facility across the worldplays an important role in mak-ing IKEA products available tocustomers.

Retail,distributionand production

1 At the end of FY15, there wasa total of 375 IKEA stores in47 countries operated underfranchise agreements with InterIKEA Systems B.V. Of these,47 stores were operated by fran-chisees outside the IKEA Group.

328IKEA Group

stores located in28 countries 1

978suppliers in

50 countries 2

NORTHAMERICA

52 Stores 3 % Purchasing value 7 Distribution

centres 1 IKEA Industry

productionunit

RUSSIA 14 Stores 2 % Purchasing value 1 Distribution

centre 6 IKEA Industry

productionunits

EUROPE 229 Stores 60 % Purchasing value 19 Distribution


productionunits

ASIA 27 Stores 35 % Purchasing value 5 Distribution


productionunits

AUSTRALIA 6 Stores 1 Distribution

centre

SOUTHAMERICA

1 % Purchasingvalue

2 Includes IKEAIndustry whichaccounts for11 % of the total

production with43 production unitsin 11 countries

S U S T A I N A B L


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DEMOCRATIDESIGNEveryone has the right to a betteeveryday life. This belief steevery thing we do and it is why want all of our products to hav

great form, function and qualitbe produced sustainably and enable a more sustainable life home – all at a low price. We cthis Demo cratic Design.

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Making everyday life betterWe offer around 9,500 products, and every year werenew and refresh our range with around 2,500 productsso there is always something new to discover.

9,500 productsWE MAKE EVERY PRODUCT WITH DEMOCRATIC DESIGN PRINCIPLES IN MIND.IT’S WHAT MAKES OUR RANGE UNIQUELY IKEA.

Democratic Design is an idea withve dimensions – form, func -

tion, quality, sustainability andlow price – and provides endlesspossibilities for developing theIKEA product range and makinglife at home better and moresustainable.

Form is about the beauty ofeach thing, and also about howmuch better life becomes whenyou feel good about being athome.

Function is not only about how

well each thing works, but abouthow those things make everydaylife easier and more meaningful.

Quality is about lasting longerand ageing gracefully, andalso about how much easierthings become if the home canwithstand the wear and tearof the everyday. When peoplecan choose things that t theever-changing demands of life,then everyone will have good,long-lasting experiences.

Sustainability is not only about

producing in a way that’s goodfor the planet, but also abouthow life at home can become away of having a positive impacton the planet.

We always aim to exceed ourcustomers’ expectations with newdesigns, function, sustainability,good quality and a low price –but not at any price. Sourcingmore sustainable raw materialsand supporting good workingconditions are a prerequisite forsustainable business.

DEMOCRATICDESIGN

FORM

QUALITY FUNCTION

SUSTAINABILITY

Limited CollectionsWe always want to offer our customtiful and inspiring products. Last y12 design collections globally, on tchanges and new product families to our range.

The SPRUTT collection of storage, orgaaccessories makes the busiest times of daIt is super functional, has a graphic look affordable price.

“We used the ve elements of Democratic Designwhenever we met a design challenge,” says JonKarlsson who co-designed the NORRÅKER diningseries with Nike Karlsson.

Combining great quality craftsmanship witha familiar, homey feel, the chairs and table inthe series are ne examples of Democratic Design.

The visible ttings make assembly easier andenable us to offer the products to customers ata low price.

“Tough technical demands for public use inrestaurants resulted in a special look, a for m thatgives NORRÅKER a traditional feel with a modernScandinavian expression,” says Nike.

The design team integrated smart and us-er-friendly functions. “The stackable chairs savespace and the rounded table corners make it saferfor kids to run around. The hardwearing surfaceswithstand stains, and they are made out of sus-tainable, 100 % renewable material,” says Jon.

But no matter how great the quality, theproduct won’t sell unless it is also beautiful andaffordable. That’s why we chose solid birch, awonderful sustainable wood at the right price.

Creatingthe NORRÅKERdining series

» At every crossroad theteam has to agree onthe best possible choice,based on all ve elementsof Democratic Design.The design processis truly inclusive,with everyone

contributing. «Nike KarlssonDesigner

LOW PRICE

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Reviewing our rangeIn FY15, we reviewed and improved our basic rangeagainst Democratic Design principles. We weremaking sure that the range represents great designin every aspect – to make people’s lives even better.Our 365+ range is designed for all types of foodand any occasion. Re ecting changes in the way welive and eat, this new range makes every meal lookbeautiful, whether it’s a bowl of cereal on the sofa ora special dinner with friends and family.

MARCUS ENGMAN SHARES HIS INSIGHTS ON HOW WE PUTDEMOCRATIC DESIGN PRINCIPLES INTO PRACTICE EVERYDAY.

“We don’t only make things – wemake things better,” says MarcusEngman, Design Manager, IKEA ofSweden.

“Democratic Design (see imagepage 30) is one of the toolswe use to achieve our vision tocreate a better life for the manypeople,” says Marcus.

Most IKEA products are de-signed in Älmhult or at our productdevelopment centres in Asia, andmany of them are further devel-oped together with our suppliers

directly on the factory oor. “Our starting point is to de ne

what the key elements of the pro-cess mean for the product. Thenwe must nd a way to balancethe often contrasting demands ofform, function, quality, sustaina-bility and a low price.

“For example, our researchshows that customers view quali-ty in different ways,depending on the product andhow they intend to use it. Wealways check what’s on people’s

minds when it comes to quality. “The toughest challenge is

achieving a low price to make theproduct affordable. There are noshortcuts because there is a setcost for important raw materialslike steel or wood. So we need tobe very smart in how we chooseand use those materials to main-tain the quality and sustainabilitydimensions, while keeping theprice low.

“Part of the recipe is working to -gether as a team, close to the fac-

Getting under the skinof Democratic Design

In May 2015, hundreds of journalisin uencers in interior design and hofurnishing gathered in Älmhult for annual Democratic Design Day.

They were there to meet our dessneak peeks of new products and dwant to create a feeling of steppincollective brain that is IKEA – intdesign universe. It can sometimes it’s always fuelled with great curioty," says Marcus Engman, Design

of Sweden.

Democratic Design D

tory oor, and to our customers.IKEA has 15 in-house designersand approximately 150 on con -tract, plus engineers, packagingdesigners, materials specialists,product developers and commu-nication experts. Everybody’scontribution is so important.

“To have one really good ideayou need to start with lots of ideas,and then you narrow them down.We call our way of working the

‘Fun Funnel’. If you fail with oneconcept, you don’t have to start all

over, you just go back and pick upone of the others. It’s a faster wayof working and much more fun.

“If 250 ideas for a collectiongo into the Fun Funnel you couldget 100 prototypes but only 35 ofthose will become products thatreach the stores. More and moreproducts are developed directly onthe factory oor, where the design -ers work closely with the produc-tion specialists and craftsmen toutilise existing technology, theirexperience and know-how to max-

imise each dimic design. In thquicker and be

“The procesent internally. Design centre,products undeon display, so tsee what the oworking on.

“We are alwer in this way, creativity to mproducts for ou

Marcus EngmanDesign Manager,IKEA of Sweden

D E M O C R A T


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Quality matters

Innovation

Think how many times youturn the kitchen tap on and offevery day. We sold more thana million taps in FY15 and eachone is guaranteed for 10 years– that demands top quality.All our products are tested inthe development stages, usingstandard industry methods aswell as our own trials that sim-ulate the wear and tear of reallife at home.

Then we constantly checkthe quality of our products inuse by measuring customersatisfaction and collecting dataon product returns. The feed-back is used to continuouslychallenge ourselves to improveour customers’ experience ofour products. We took thisapproach with our kitchen andbathroom taps last year and

we are already seeing thatcustomers like the changes wemade.

To create a real movement,we set up a cross-organisationalteam to scrutinise the wholelifecycle from product devel-opment to delivering water inthe home. This led us to makemany changes, including morefocus on quality by using bettermaterials and components,different construction methods,and new ways of working in-house and with our suppliers.Then we toughened our tests tobetter re ect the everyday useof our taps.

It is early days, but theresults look promising – cus-tomer satisfaction for kitchenand bathroom taps rose by 30percentage points to 98 %.

WE ARE EXCITED BY TWO INNOVATIVE MATERIALS INTRODUCED TOOUR RANGE: THE REVOLUTIONARY M-BOARD AND NATURAL CORK.

» When working withinnovation, we try tobring people from dif-ferent competencyareas together. Factorymanagers, technicalexperts, designers andmaterial experts workon the factory oorcreating the products

from the start, buildingprototypes, makingmock-ups, and reallygetting to know thenew materials. «Johan EjdemoRange Development Leader,IKEA of Sweden

All IKEA tapswater and enethe mechanismwater ow wh

pressure. To hfriction that ochanging the tthe water, the been equippedceramic discs

» The new YTTRAN kitchen tap –with better design, construction,components and new packaging– is really appreciated by ourcustomers and co-workers. «

Antony SmithProduct Development Engineer,IKEA of Sweden

A new takeon an old materialWe have fallen in love withcork again. It happened whilesearching for the perfect mate-

rial for the SINNERLIG furniturecollection launched in FY15.Material and Innovation De-

veloper Jan Ahlsén and Britishdesigner Ilse Crawford, re-intro -duced us to fabulous cork.

“It’s natural, heat resistant,light, and repels dirt and stains.That makes it ideal for a tabletop prone to coffee and winestains. It’s also waterproof, easyto clean, and reduces noise,”says Jan.

Cork comes from the bark ofthe cork oak tree and has beensustainably harvested for cen-turies by removing some barkduring the summer when thetree is growing fast. The workis done by hand and the tree i snot harmed in any way.

Cork is mostly used to makewine stoppers. We used thematerial made from the off cuts,which supported the cork indus-try to maximise its alternativeusage.

A light materialwith heavy potentialInnovative thinking resulted ina new board with revolutionaryenvironmental and economicbene ts.

We have recycled our wastepaper for many years, but nowwe are using it ourselves tomake M-Board, while halving

the energy used in board mak-ing, reducing carbon emissionsand cutting our manufacturingcosts.

M-Board – “Miljöskiva” in

Swedish, which means envi-ronmental board – is 100 %recyclable and is as strong asboards such as MDF.

Most importantly, we have asustainable material at a lowprice to feed into the Demo-cratic Design process. The rstproducts will be launched in2016.

D E M O C R A T


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WE ARE DOING OUR HOMEWORK ON LIFE AT HOME IN INDIA BEFORE ENTERING THIS EXCITING NEW MARKET.

“We always look much more forthe similarities than differences,”says Mia Lundström. Until recent-ly, Mia was the Creative Directorof home furnishing at IKEA ofSweden and now she is our Lifeat home expert in India, wherewe are preparing to open our frststores.

“People have quite similarneeds at home throughout theworld. But of course there aredifferences such as the way theycook, how much space they haveand their traditions and style

preferences. “My role in India is to fully un-

derstand life at home – we want togrow our business based on strongknowledge of what people wantand need. We don’t want to rush

things, so we do a lot of researchand home visits to learn howpeople live. I’m very excited bythe opportunity to enable a better,more sustainable life at home inthis vibrant and culturally diversecountry of 1.2 billion people.

“Connecting home furnishingsand technology is an area wherewe have the biggest opportunityto inspire our future customers.The importance of technology inthe home is changing fast, withmore and more people owningmultiple devices, even when

space is limited and regardless ofhow much they earn.

“We are eager to support cus-tomers to overcome challengeslinked to health too. We can pro-vide solutions for reducing dust

and pollution – anin India. And we saving and cleaninis a priority for m

“Besides rich, vbig part of the Indstorage solutions asmall homes with members. I’m surerange will be attraing how importantIndian households

“We want to shbetter everyday lia humble way acr

markets. Our rootthinking about hoings is all about emany people to lino matter where wworld,” says Mia.

A leader in life at home

Mia Lundström, our Life at home expert at IKEA India.

For more stories on IKEAproducts, home furnishingand the IKEA Concept,check the “Our year IKEA2015”, published by InterIKEA Systems B.V. onwww.IKEA.com/ouryear .

Inter IKEA Systems B.V. is theowner of the IKEA Concept andis the worldwide IKEA franchisor.IKEA of Sweden AB is assignedby Inter IKEA Systems B.V. todefne the IKEA product rangeand develop the IKEA products.

Home make oversinspiring co-workers in ChinaCo-workers at IKEA Retail China submitted stories about their dreamsand frustrations with life at home as part of a national ‘home make-over’ competition. 110 lucky co-workers got the chance to maketheir dreams come true with the support of IKEA products and expertadvice. Find out more about their experiences on youtube.com/ watch?v=Eb9sOrjlmz4

» We wanted to ena-ble more co-workers tosee how home furnish-ing can improve life athome. By engaging andinspiring each other, wecan become home fur-nishings ambassadorsand meet our custom-ers’ needs better. «Licca LiCommunication and InteriorDesign Manager,IKEA China

Curious about more stories?

D E M O C R A T I

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A GREATPLACE TOWORKWe believe in people. Each of oco-workers brings their unique ideaand talent to work every day – theyare what makes IKEA great. We wan

to make sure every co-worker feelwelcomed and valued, and has the opportunity to develop their potentialBecause when our co-workers growso does IKEA.

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“MY SENIOR LEADER SAW SOMETHING IN ME, SOME POTENTIAL THAT I DIDN’T KNOW I HAD.”

Salma Azad was hesitant aboutbeing promoted at rst – it hap -pened so quickly! But this feelingdid not last long. In just nineyears, she has progressed fromSwedish Food Market Manager atthe IKEA Birmingham store, toDeputy Store Manager at the UK’slargest IKEA store in Wembley,London. Her success is a resultof working closely with her team,getting the best out of everyindividual to reach their common

goal – and of managers who rec-ognised her talent.

After developing her knowl-edge of IKEA through a rangeof positions in the store, Salmatook part in the Next GenerationProgramme: “It was a real ‘Wow!’moment for me,” she says. “Itgave me a deeper understandingof the company.”

She started the programme atthe same time as taking on a newrole, which left her feeling over-

whelmed. “It became physicallyimpossible to manage my newrole as a Market Hall Manager andcomplete the Next GenerationProject.” She knew she neededsupport, and she found it. “WhenI’ve felt challenged and pushedthere has always been someone Icould turn to. In this case it wasmy store manager who coachedme through the process, helpingme to prioritise and understandwhat I could set aside until later.”

The road to Wembley

Next GenerationProgrammeRun by IKEA UK and Ireland, the12 month programme providesopportunities to develop bothorganisational knowledge andleadership skills, using a learningin the business approach to accel-erate development from LeadingOthers to Leading Leaders.

Business Deveership ProgramA nine month national coursfuture senior ltheir talent. In managers comin-depth progr

When you grow, IKEA grows too!

Every one of our co-workers

has unique ambitions andskills. We invest in theirdevelopment based on indi-

vidual needs,

have the opporduring their ti

Investing in our leaders

» This programme hashelped me look at how Ilead, and as a result I’vegained a lot, personally and

professionally. Having peo-ple believe in you, while alsosupporting and challengingyou, is how you grow. «

Salma AzadDeputy Store MIKEA Wemble

The IKEA Wembley store is located close to the Wembley Stadium.

Our human

resource idea

To give down-to-earth, straight-forward peoplethe possibility togrow, both asindividuals and intheir professionalroles, so thattogether we arestrongly committedto creating a bettereveryday life for

ourselves and ourcustomers.

It didn’t stop there. Salmaenrolled in the Business Devel-opment Leadership Programme(BDLP) to develop her talent andleadership abilities even further.That rst feeling of uncertaintyseems a long time ago: “Thisprogramme has helped me lookat how I lead, and as a result I’vegained a lot, personally and pro-fessionally. Having people believein you, while also supporting andchallenging you, is how you grow.”

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DIVERSITY AND INCLUSION – ACTIVITIES IN FY15

Our approachInclusion is everyone’s job. Weupdated the IKEA Diversity andinclusion approach to supportmanagers in continuing tocreate a diverse and inclusiveenvironment that encourages

everyone to be themselves. InFY16 we will roll out workshopson the updated approach to allco-workers, so that we can usethe same approach when inte-grating diversity and inclusioninto our business, and therebyreach our goal to be a trulyinclusive workplace.

Gender equalityWe have interviewed leaders,asked co-workers for their opin-ions and evaluated our humanresources practices, to learnmore about gender diversityat IKEA, and where we can

improve. We found that there isa strong foundation, but that wecan do more to track progress,ensure co-workers are awareof goals and practices and stayfocused on achieving genderbalance at all levels.

LGBT inclusionWe want lesbian, gay, bisex-ual, and transgender (LGBT)co-workers to feel respected,valued and appreciated forwho they are – so we formed aworkgroup to create a plan to

support LGBT inclusion at IKEA.Work on this topic will continueand a LGBT inclusion plan will bedeveloped in FY16. We will alsobe nalising our Human Rightsand Equality Policy and Stand -ards, which will include refer-ences to sexual orientation andgender identity. IKEA Switzerland – a world leader in gender equality

In FY15, IKEA Switzerland be -came the rst company in theworld to reach the highest levelof gender equality certi cationfrom EDGE (Economic Dividendsfor Gender Equality) – the leading

global standard for gender equal-ity. EDGE assesses ve areas:equal pay for equivalent work,recruitment and promotion, lead-

ership development training andmentoring, exible working andcompany culture.

Simona Scarpaleggia, Coun -try Manager, IKEA Switzerland,explains how certi cation has

helped with the journey towardsgender equality: “With the EDGEcerti cation we had the oppor -tunity to verify whether our

ambition to treequally at IKEFor example, wened our compculture to prevunderrepresen

in managemenoffer different A TRULY INCLUSIVE WORKPLACE CONTRIBUTES TO OUR CREATIVITY ANDBUSINESS RESULTS

Commitment to diversity andinclusion means respecting eachco-worker’s individuality andencouraging everybody’s con-tribution. For Claudia Marshall,Distribution Area Manager NorthEurope, it’s all about valuing thedifferences in her team.

But encouraging diversitydoesn’t automatically mean peo-ple feel included. Claudia takes

the time to make sure all teammembers can contribute in what-ever way they feel comfortable.

“I strive to create a workclimate where everybody feelsrespected, supported and valued

for their participation and contri-bution to the business,” she says.

“The key is to make the most outof each individual’s strengths.Accepting and appreciating ourdifferences brings us together andimproves our business results.”

Originally from Germany,Claudia now works in Älmhult,Sweden, where she leads amanagement team of 10 peoplefrom Germany, Russia, Swedenand the UK. They are a diversegroup, each with their own uniqueexperiences. With their help,Claudia has managed to create anenvironment of genuine inclusion:

Inclusion in practice

Gender diversity IKEA Group(Share of women)

41 % of Extended Group Management48 % of all managers are women55 % of al l co-workers are women

As a strategic, long-term investment to becomemore gender equal on all levels, IKEA Industrylaunched the Female Potential Programme. 17 fe -male co-workers from seven countries were selectedto attend this 12 month programme where learning

on the factory oor is mixed with workshops on IKEAleadership fundamentals, culture and values. Eachparticipant has a mentor and a coach supportingtheir development. The short term goal is to encour-age participants to take on leadership roles after theprogramme.

More womenin IKEA Industry

”Our meetings are intense be-cause of the many different viewsrepresented – which lead to betterdiscussions and more creativity. Itmakes our team stronger and bet-ter. Diversity and inclusion shouldnot only be a phrase on a piece ofpaper, it’s a mind-set and shouldbe lived actively every day!”

Claudia MarshallDistribution Area ManagerNorth Europe

» Today 22 % ofIKEA Industryleaders are wom-en and the IKEA Group goal is 50 %.Women make up half of the world’spopulation and we want to attract

more talented women to be leadersin IKEA Industry. «Leif HultmanIKEA Industry Manager

of the INGKA Supervisory Boardare women (3 women)43 %

33 % of Group Management are women(3 women)

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THE IKEA CULTURE AND STRONG TEAMWORK CAN BE SEEN AND FELT EVERYWHERE AT IKEA INDUSTRYNANTONG, AND HAS PLAYED A BIG PART IN ITS SUCCESS, SAYS HUMAN RESOURCE MANAGER, ECHO CHEN.

As soon as you step inside IKEAIndustry Nantong you can tell itis different from other factoriesin China. It’s decorated with IKEAfurniture and textiles, plants and

owers. There’s an area wherestaff can relax and have a coffeebreak – the IK EA way. And breaks

are important when you’re pro-ducing 3 million BESTÅ, STUVA,KALLAX and INREDA productsevery year!

“Making co-workers feel athome is important. Because they

are important,” says HumanResource Manager Echo Chen.

Echo joined IKEA two yearsbefore the factory opened, and shetrained in Sweden to learn aboutthe IKEA culture. She brought theIKEA values into her recruitmentefforts for the new factory: “We

hired people with the right values.And we invested heavily in intro-ducing them to the IKEA cultureand training on safety and quality.Now, people feel like they are partof the global IKEA.”

Each month, the factory arrangesIKEA Day: a hundred co-work-ers and their families travel toShanghai to experience an IKEAstore and to see where the prod-ucts they are making, are sold.

“The bus is always fully booked.It makes all the difference for the

co-workers to really feel the IKEAculture and see their products inthe store”, says Echo.

In just two years IKEA Indus-try Nantong has grown from 165co-workers to 450, almost half

Teamwork is in our hearts

» Our humanistic values,our inclusive culture andour belief in people allcontribute to make IKEAa great place to work. «Petra HesserHuman Resource Manager,IKEA Group

Recruitment based on the IKEA values is key to tthe IKEA Industry factory in Nantong – and of alstores and distribution centres.

The IKEA values• Togetherness and

enthusiasm• Humbleness and willpower• Cost-consciousness• Constantly being “on the way” • Leadership by example

• Simplicity• Striving to m• Willingness t

delegate resp• Daring to be• Constant desiWe are now over 155,000

co-workers within the IKEA Group.

155,000

» Makingfeel at homtant. Becauimportant.

Echo CheHuman ResIKEA Indu

of whom are women. Many Nan-tong co-workers are proud IKEAambassadors, and they give thefactory top scores in our co-workersurvey, VOICE. Local authoritiespoint to IKEA Industry Nantong asa good example of sustainabilityperformance and human resources

management. And word has spreadthat it is a great place to work. Atthe Chinese New Year, when workerstraditionally look for new jobs, thefactory received over 500 applica -tions without advertising.

Echo believes that a strong teamis part of the factory’s success:

“In our factory we have passionfor people and we work as a teamwhere everyone is an equal, re-gardless of title or position. Team-work is in our hearts – it is ourvalues translated into our behav-

iour. Many employees have alreadygrown with IKEA and moved on tobe team leaders.”

IKEA Industry factory, Nantong, China

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PEOPLE ANDPLANETPOSITIVEOur vision to create a better everyday life goes beyond home furnising. We want our business to have positive impact on the world – fro

the communities where we sourcour materials, to the way our products enable our customers to live more sustainable life at home.

By sharing what we do, aspeaking up for what we believe inwe can be part of a positive changin society.

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€ 1 billion committedfor climate actionThis includes a € 600 mil-lion commitment from IKEAGroup to invest in renewableenergy, building on the € 1.5billion invested since 2009,and a € 400 million commit-ment from the IKEA Founda-tion to support communitiesmost impacted by climatechange.

Tackling climate change willrequire many big investmentslike this from both businessesand governments. We hopethat this announcement, whichwe made during a UN climatemeeting in Bonn in June 2015,will encourage similar invest-ments from others.

53 % renewable energyIn FY15 we produced renewa -ble energy equivalent to 53 %of the consumption in ouroperations. We are on trackto achieve our goal to reach

100 % by 2020.

Only LEDNow our entire lighting rangeis LED. This is good news forthe planet, and for custom-ers’ wallets, because LEDlight bulbs use up to 85 %less energy than traditionalincandescent bulbs, and lastup to 20 years.

CLIMATE CHANGE IS ONE OF THE BIGGEST CHALLENGES OF OUR TIME ANDWE ARE GOING ALL-IN TO TRANSFORM OUR BUSINESS AND BE PART OF THESOLUTION. RAPID ACTION IS NEEDED TO AVOID THE WORST IMPACTS. WEHAVE A CLEAR RESPONSIBILITY – AND AN OPPORTUNITY – TO MAKE OURBUSINESS BETTER AND MEET THE NEEDS OF OUR CUSTOMERS.

We want to produce as muchenergy from renewable sourcesas all of the energy we consumein our own operations, by 2020.This means we are investing inwind farms and solar panels togenerate energy that does notcome from fossil fuels. We alsoencourage our suppliers to switchto renewable energy and im-

prove ef ciency. Since FY12 wehave supported our suppliers toachieve an 18 % improvement inenergy ef ciency at their sites.

And we don't stop there! Wewant to inspire and enable themillions of visitors to our storesand to IKEA.com to live more sus-tainable lives. That is why we areconstantly offering more products

and services that enable our cus-tomers to save energy, water andwaste at home.

Going all-in means transform-ing our business and joining withothers to take a stand and call forpositive change.In December 2015, PeterAgnefjäll, our President and CEO,and Steve Howard, our Chief

Sustainability Of cer, were at theCOP21 climate change summit toshare the actions we are takingand to emphasise the importanceof bold policy measures for usand other businesses.

Everyone has a part to play intackling climate change and wewant to inspire others to takeaction.

Going all-in to tackleclimate change

» We are siding with customers on one ofthe biggest challenges of our time, and raising

our voice to encourage others to go all-into tackle climate change too. «

Peter AgnefjällPresident & CEO, IKEA Group

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LED bulbs are great for the

planet. They use up to 85 % lessenergy than incandescent bulbsand last up to 20 years. That iswhy, in 2012, we decided to goall-in and switch our entire light-ing range to LED. But back then,LED technology was consideredexpensive and it did not offer thedifferent colours of light – fromwarm to cool – that our custom-ers wanted.

As always, we believe that ourcustomers should not have tocompromise on function or price.We worked hard with our sup-pliers to develop the technology

and ensure we could offer LEDbulbs in a range of shapes, siz-es, and tones – all at affordableprices. By automating more ofthe production, we were able toreduce the recommended price

of our most popular bulb by

80 % compared to 2012, so thatmany more people could affordto make the switch to LED. Weaim to offer the lowest price LEDbulbs and built-in LED lamps onthe market.

In September 2015, wereached our target to only selllighting that is LED, or compatiblewith LED bulbs, enabling our cus-tomers to live a more sustainablelife at home and save money ontheir electricity bills.

Switching to more ef cientlighting is good for IKEA too. Sofar, 38 % of our stores have had

LED or other energy ef cientlighting installed. We aim toinvest € 100 million in LED andother ef cient lighting systems byFY17, saving each store thou-sands of Euros every year.

Only LED in our lighting range

In November 2014, wereceived special recognitionfrom the United Nations Envi-ronment Program’s en.lighteninitiative, for our commitmentto sell only LED bulbs in ourstores by September 2015.

Our customers bought 90million LED bulbs and lampsin FY15. If each of the 64 mil -lion LED bulbs sold replacedan incandescent bulb, theycould save enough energy topower more than half a mil-lion households for a year!*

*Calculation based on the electricityconsumption of an average Europeanhousehold.

» In September 2015, we reached ourtarget to only sell lighting that is LED,or compatible with LED bulbs, ena-bling our customers to live a moresustainable life at home and savemoney on their electricity bills. «

HÅRTE LED work lampgreen/silver-colour

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All-in for cotton frommore sustainable sourcesWe buy almost 1 % of the world’s yearly supplyof cotton, and now all of the cotton we use forour products comes from more sustainablesources.

35 million hectaresWe have been working with WWa decade to increase levels of ForCouncil (FSC™) certi cation globthe illegal timber trade. So far wFSC-certi ed forest by around 35

an area roughly the size of Germthan double the total area neededThe FSC is a global, not-for-pr

dedicated to the promotion of remanagement worldwide. We beliecerti cation is currently the best wthat the wood we use is from mosources.

50 % of w ood frommore sustainable sourcesWe reached our goal to source 50 % of woodfrom more sustainable sources two years aheadof schedule.

By August 2020, we aim to get 1 00 % of ourwood, paper and cardboard from more sustain-able sources, which we currently de ne as re -cycled or certi ed to the standards of the ForestStewardship Council™ (FSC). We are workingwith partners towards afuture where all wood is produced in ways that

prevent deforestation, protect wildlife and bio-diversity, and support communiti es who rely onforests for their income.

Raw materials frommore sustainable sources

1 From September 2015 onwards, all the cottonis from more sustainable sources, although a products produced using conventional cottonbe available in stores until they are sold out.2 Cotton from more sustainable sources includBetter Cotton Standard; by farmers working toand more sustainable cotton from the USA (suProgram’).

“This year is the beginning of a new era for cottonat IKEA.

All the cotton used for our products, from softfurnishings and bedding, to towels and rugs, nowcomes from more sustainable sources. This meansthat farmers supplying our cotton are trained tooptimise the use of inputs, such as water, syntheticfertilisers and pesticides, which increases their grossmargin. This is a great step and going forward, wewant to nd even more ways to support cotton pro -ducers around the world to be more sustainable.

Our hope is that cotton from more sustainablesources will one day be the only cotton available.

We are one of the founding members of BCI, aglobal organisation that aims to make cotton pro-duction better for the people who grow it, betterfor the environment it grows in, and better for thesector’s future.

Together with partners like BCI and WWF, we areworking in cotton-producing countries to providehands-on training and eld schools – so far we’veenabled around 110,000 farmers to learn moresustainable farming methods. We’ve got big am-

bitions to increase the global supply of more sus-tainable cotton and improve standards across thewhole industry – not just in our own supply chain.

We want to help make more sustainable cottonthe norm for everyone, not only for IKEA.”

MANY OF OUR PRODUCTS ARE MADE OF WOOD AND COTTON – BEAUTIFUL, NATURAL AND RENEWABLE MATERIALS.WE WANT TO MAKE SURE THESE MATERIALS ARE GROWN AND HARVESTED IN WAYS THAT ARE GOOD FOR PEOPLEAND THE PLANET.

Pramod Singh,IKEA Cotton Leader,IKEA of Sweden

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OUR VISION TO CREATE A BETTER EVERYDAY LIFE FOR THE MANYPEOPLE GOES BEYOND HOME FURNISHINGS.

We believe that everyone de-serves the right to prosper, re-gardless of their background andsituation. Across our business,from our 155,000 co-workers tothe millions of people who workin our extended supply chain, wecan make a difference to people’slives around the world.

What is IWAY?The IKEA Way on purchasingproducts, materials and servicesis our supplier code of conduct.It sets out our minimum require-ments for suppliers, covering

environment, social and workingconditions, and is a pre-conditionfor doing business with us.

IWAY helps us to developlong-term relationships with oursuppliers so that we can growtogether with shared values andunderstanding. Our IWAY develop-ers work with suppliers to supportthem in implementing IWAY and,

more importantly, to bring posi-tive impacts to the many peopleinvolved in the IKEA supply chain.Our 87 IWAY auditors carry outaround 2,000 audits per year.

IKEA Foundation supporting communitiesChildren are the most important people in theworld. They have the right to l earn, play andgrow. IKEA Foundation, the philanthropic arm ofStichting INGKA Foundation (the owner of theIKEA Group), supports projects in some of theworld’s poorest and most vulnerable communities– improving opportunities for children and theirfamilies.

Along with its partners around the world, theIKEA Foundation focuses on four i mportant areas

of a child’s life: a place to call home;a healthy start in life; a quality education; and asustainable family income. This year, the Founda-

tion committed an additional € 402020 (see page 50), to support sommunities most impacted by climat

Our customers and co-workerstant part. Through the Brighter Lugees campaign, for every LED in IKEA stores during the campaFoundation donates € 1 to the UN(UNHCR). As a result IKEA Founed € 10.8 million to improve acce

renewable energy and primary edaround 380,000 people in refugeAsia, Africa and the Middle East

Better lives for people

and communities

IWAY: more than just a checklist “I’m not a box ticker!” saysSophie Montavon – an IKEAIWAY auditor of seven years.

“I learned more in my rstyear as an auditor than inmy rst year at school. Boxtickers couldn’t do this job –you need to have a passionfor learning.”

Auditors are sometimesseen as focusing on checklistsrather than collaborating toachieve positive results. Weconsider our auditors as thehuman link between our sup-plier code of conduct – IWAY– and our suppliers.

“When we do an audit wehave to see things from thesupplier’s perspective. Ourrole is to understand howthey are working, to assessthem of course, but also toexplain why we are askingthings and to help them un-derstand the bene t to them.Ultimately, we are doing thisfor the health and safety ofpeople working at our sup-pliers, their families and theenvironment. It is so reward-ing when we see real changeand investment. It’s not justa paper exercise – we arereally making a difference.”

Sophie MontavonSustainabilityCompliance Auditor

Weaving a brighter future for families

Weaving is more than a jobto Sushila Devi – it’s a future.

“Before, I worked as a daylabourer, and was paid eachday,” says Sushil a. “But now

I get a monthly salary. I canplan my investments.” She is just one of the 10,000

weavers and other workers

involved in creating beautifulhandmade IKEA rugs in Indiaand Bangladesh, keeping theheritage of local crafts alive.We work with our suppliers in

these areas to make sure IKEArugs contribute to a betterlife for the people who makethem. This means decent

working conpay in factoriFor Sushila, opportunities

“Thanks to th

to send my chand start to dfuture.”

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FINANCE

Proft brings us resources to grow.

Through high investments in area

that generate growth and a better

customer experience, we saw oulargest sales increase ever in FY1

Thanks to our strong performance

we are able to continue to invest i

the future and follow our long-term

direction.


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Strong sales, continuedexpansion and a € 3.5 billionnet proftFY15 was a year of stronggrowth. Sales in comparablestores, the opening of newstores and online expansion allcontributed to the result. Wehave worked hard to improvethe quality of our home furnish-

ing offer and we continue tolower our prices.

Our marketsGrowth was well distributedacross our markets, and saleswere highest in Germany, theUS, France, the UK and Italy.In December we opened our

rst store in South Korea, andwe continued to advance ourretail plans in India. In total, weopened 13 new stores and threenew pick-up and order points,where customers can view aselection of the IKEA range and

pick up pre-ordered items.Our performanceIn FY15, total sales translated

into Euro increased by 11.2 %compared with FY14, to € 31.9billion. Adjusted for currencyimpact, total sales increased by8.9 % and sales in comparablestores grew by 5.1 %.

Together with the rental in-come from our shopping centres,total revenue was € 32.7 billion –11.5 % more than in FY14. This

increase is partially due to the€ 140 million increase in rentalincome from acquiring remainingshares of the shopping centrecompanies Inter IKEA CentreGroup and Ikano Retail Centres.

The biggest growth came fromcomparable stores, with newstores and online sales contrib-uting to the positive result. Wehad 1.9 billion visits to IKEA.com and online sales, estab-lished in 13 of our 28 markets,exceeded € 1.0 billion. IKEAFood increased sales by 9.5 %.

The cost percentage increased

from 31.2 % to 31.8 % due tolarger investments in businessand IT developments requiredfor the future growth of the IKEA

Group. Also, the acquisitionsof the shopping centres, whichhave a different cost structure,contributed to the increased costpercentage. The gross marginremained stable at 42.9 % withthe lower prices to the customersbeing offset with lower purchaseprices and increased ef ciency inour supply chain.

Our net nancial result de -creased slightly due to unfavour-able interest rate movements.This was partly compensated bycurrency gains. We did not incurany credit losses on our securi-ties portfolio. Net pro t was € 3.5billion, 5.5 % more than in FY14,which reinforces our strong nan -cial position for the coming yearsand provides a base for future in-vestments. Total assets increasedfrom € 44.7 billion to € 50.0billion, following the acquisitionsand growth of our business. Wemaintained an equity ratio of

70 %. In FY15 we paid a dividendto our owner, Stichting INGKAFoundation, of € 666 million(FY14 € 660 million).

Our fnancial year 2015

Currency ImpactThe IKEA Group is based in the Netherlands and therefore reportsits nancial results in Euro (€). This means that all gures inlocal currencies from the 43 countries in which we operate aretranslated into Euro and then accumulated. Since currencies

uctuate, companies will always face currency effects when doingthese translations, so in order to show the underlying trend whenadjusting for this effect, the IKEA Group also communicates thecurrency-adjusted development. For FY15, the currency adjustedsales growth was 8.9 %, while the straight conversion into Eurosshows a sales increase of 11.2 %.

GERMANY USA FRANCE UK ITALY

14 % 14 %

8 %7 % 5 %

TOP

SELLINGCOUNTRIES

Retail sales per country as a percentage of total IKEA Group sales

EUROPE AMERICA ASIA & RUSSIA AUSTRALIA

67 %

18 %10 % 5 %

SALESPER REGION

CHINA POLAND ITALY

25 %

19 %

8 %

TOP

PURCHACOUNTR

3 %

EUROPE ASIA NORTH AMERICA

60 %

35 %

PURCHAPER REGI


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In FY15, we committed to invest € 600 mil -lion in renewable energy projects, buildingon the € 1.5 billion invested in wind andsolar since 2009. This will help us to reachour target to produce as much energy fromrenewable sources as all of the energy weconsume in our operations, by August 2020.

We have committed to own and operate 314wind turbines around the world, up from 224in FY14, with new projects in Poland and theUS. We have invested in 750.000 solar panelson our buildings worldwide (up from 700.000).

In FY15, our 90 MW Glötesvålen wind farmin Sweden became fully operational. This

means that we now produce more energyfrom renewable sources in Sweden than weconsume in our buildings in all of the Nordiccountries. We have also reached this mile-stone in Canada and the US.

Ensuring long termresource independenceOur investments in resource independencego beyond renewable energy. For example, wehave acquired 33,600 hectares of forestin Romania, making it the rst country wherewe link ownership of sustainable wood supplyto local production and products in the store.We are committed to responsible forestmanagement and all forests we invest in will

be certi ed to the FSC forest managementstandard as soon as possible.

The IKEA Group has operated sfor many years, e.g. IKEA Mos Centres, our new shopping centrecreated through the merger of IntGroup, Ikano Retail Centres and a combined book value of € 6.0 there are 40 centres and 25 r etailcountries, and around 20 projectacross Europe, Russia and China

Owning and managing shoppilong-term commitment, which amore ef ciently and make betterresources when we invest in lanstore as a main attraction, the sh

create family-friendly meeting pmany people that come from neoor area, IKEA Centres’ single

is Russia, with 14 MEGA shoppwhich include an IKEA store. Tis China, where we now have thrcentres.

FY11–FY15 TAX

We are committed to managingour operations in a responsibleand sustainable way. Whereverthe IKEA Group is present withstores, distribution, manufactur-ing or any other business, we payour taxes in full compliance withnational and international taxrules and regulations.

Corporate income tax increased

to € 822 million, with an effec-tive corporate income tax rate of18.9 % (19.3 % in FY14). Localand other taxes, such as prop-erty, business and environmen-tal taxes together with customduties, totalled € 700 million. InFY15, our total tax charge wasmore than € 1.5 billion. We also

collected substantial taxes on

behalf of governments, such asVAT and employee taxes.

By growing our business wecreate jobs, both within the IKEAGroup and among our suppliersand partners, which contributesto the local economy by generat-ing tax incomes.

Taxes Our investmentsContinued growth and long-term pro tability givesus funds to invest. In FY15 we invested € 3.2 billion(FY14 € 2.2 billion) mainly in stores, shopping

centres and renewable energy, to bcustomers.

IKEA Centres –meeting places forthe many people

Over the last ve years (FY11–FY15), corporate income taxand other taxes amounted to approximately € 7.2 billion.

Renewable EnergyInvestments

Other Taxes and DutiesCorporate Income Tax 14

450MILLIONVISITS

more than 3.2

2,007CO-WORKERS

40 SHOPPINGCENTRES

PROJECTIN THE PIPELINE20


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CONSOLIDATED INCOME STATEMENT1st September 2014–31st August 2015

The included abbreviated nancial statements are an abridged version of the consolidated nancial statement of INGKA Holding B.V. asincluded in the Annual Report for the nancial year 2015. An unquali ed auditor’s report dated 1st December 2015, was issued on these nancial statements. INGKA Holding’s Annual Report for2015 will be available through the Dutch Chamber of Commerce. INGKA Holding’s consolidated nancial statements, from which theseabbreviated nancial statements have been derived, have been prepared in accordance with Part 9 of Book 2 of the Dutch Civil Code.

The IKEA Group total revenue includes sales of articles and the rental income from our shopping centre operations.

TOTAL REVENUE 2004–2015

(in millions of Euros) FY15 FY14Revenue 32,658 29,293Cost of sales 18,221 16,372Gross proft 14,437 12,921

Operating cost 10,388 9,128Operating income 4,049 3,793Total nancial income and expense 299 352Income before minority interests and taxes 4,348 4,145Tax 822 801Income before minority interests 3,526 3,344Minority interests 14 15Net income 3,512 3,329


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The majority of our assets are funded with our own money, re ected in Group Equityof € 34.9 billion. “Liabilities” consist of both long and short-term funding, as well asthe payables connected with running the business.

Property, plant and equipment 46 %Cash and securities 33 %Inventory 11 %Other xed assets 5 %Receivables 5 %

Group equity 70 %Other payables 12 %Short-term liabilities 10 %Other non-current liabilities 4 %Long-term liabilities 4 %

Property, plant and equipment 38 %Cash and securities 34 %Inventory 11 %Other xed assets 8 %Receivables 8 %

Group equityLong-term liabilitiesShort-term liabilitiesOther payablesOther non-current liabil

CONSOLIDATED BALANCE SHEET ASSETS

CONSOLIDATED BALANCE SHEETEQUITY AND LIABILITIES

(in millions of Euros) FY15 FY14Property, plant and equipment 22,840 17,322Other xed assets 2,515 2,984Total fxed assets 25,355 20,306Inventory 5,498 4,927Receivables 2,500 2,548Cash and securities 16,659 16,886Total current assets 24,657 24,361Total assets 50,012 44,667

(in millions of Euros) FY15Group equity 34,896 31Long-term liabilities 2,061Other non-current liabilities 1,971Total non-current liabilities 4,032 3,40Short-term liabilities 4,880Other payables 6,204Total current liabilities 11,084 9,6Total equity and liabilities 50,012 44,66


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Meet the IKEA GroupManagement team

Peter AgnefjällPRESIDENT & CEO

What are IKEA Group’sbiggest achievements this year?We did a fantastic job – and we did created better products, improved quand the shopping experience. We alwith sustainability and continued ou

journey to become more accessible people around the world.

What next?Next year is all about the f ood at IKalways, we have a lot more we wanto improve; our offer and how we mtomers, when and where they wantWhat is your favourite product?Our kitchens! I’m excited about builnew METOD kitchen in my summ

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Alistair DavidsonCHIEF FINANCIAL OFFICER

Can you describe your job as Group I have responsibility for the Financnavigation, Treasury, Taxes and Corpas well as the Risk, Compliance and Our team manages the IKEA Grou

What’s next in FY16?We have a very big year ahead of us.sell more than we’ve ever sold, and wprogressing in our multi-channel joua stronger customer focus.

Favourite product?The HÅRTE LED lamp. It has a gra modern design. I take one with mwhenever I go to somebody’s home

Lotta LyråSTRATEGY, PROCESS, ORGANISATION DEVELOPMENT AND IT MANAGER

What do you do?I work with the business strategy and the direc-tion we have as a company; describing why wewant to do certain things, what support is neededto work that way, and how we are going to do it.

Biggest learning in FY15?We are taking steps in really understanding what’simportant from a customer’s point of view – whatcustomer focus means and how it r equires us towork together in even better ways.

What makes you proud of IKEA?No matter how fantastic our results are we alwayshave the same humbleness and endless list ofopportunities for the future.

Jesper BrodinRANGE AND SUPPLY MANAGER

What do you do?We work across a whole chain; from develop-ing products, materials and technical solutions,through our suppliers, to nally bringing theproducts to our customers and IKEA stores.

What were the big achievements in FY15 ?One was the result of our focus on bedrooms andbathrooms. Not only did we enable millions of

families to afford their dreams, but it was donethanks to an amazing effort all across IKEAinvolving most co-workers!

Favourite product?We always strive to work long term with our suppli-ers. Now, through our social entrepreneur initiativewe also make it possible for people with high driveand talent but with small means to get into businesswith IKEA. So I am proud of those products.

Helen DuphornCORPORATE COMMUNICATION MANAGER

What do you do?I support our business leaders in r epresentingIKEA in a good way, both internally and externally.It is all about sharing who we are, how we workand what we do. Our leaders and specialists areIKEA’s faces to the world, and I am very proud ofthem and how they participate in the dialogue intheir communities.

Why work at IKEA Group?I love the people and our strong culture. We arepractical people who help each other, work hardtogether and have fun. I am also proud of ourmovement towards becoming People & Planetpositive.

Favorite product?My beautifully designed NORDLI bed!

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Leif HultmanIKEA INDUSTRY MANAGER

What are the achievements in FY15?Everyone in IKEA Industry contribour factories an even safer place to worked hard to improve quality and increased customer value while alsothree-year change program to integIKEA Group.

Any lessons?We can move mountains with the riand a strong commitment. If we dabold challenges, they usually pay offgoals and a common identity make

Why work at IKEA Group?I am truly energised and inspired byto people; everyone is seen as a taleindividual. People do business, and ithat make the difference.

Martin HanssonRETAIL & EXPANSION MANAGER

What is your responsibility? Can you de-scribe what your job is all about?It includes our retail markets, existing and futureones. It also includes many fantastic co-workersmeeting millions of customers in different chan-nels like the stores, on the web, through the IKEAcatalogue etc.

What were your highlights in FY15?This was one of our best years ever! We opened13 new stores, achieved great sales result andhad more visits to our stores and to our websitethan ever before.

Why work at IKEA Group?For the phenomenal spirit. We are a down-to-earth, non-hierarchical company that cares aboutthe individual. You can be who you are as aco-worker and it’s what you know and what youcan do that counts, not your titl e.

Petra HesserHUMAN RESOURCE MANAGER

Biggest achievements this fnancial year?We introduced our diversity and inclusion initiativebecause we know we are stronger when we wor kin diverse teams.

Why work at IKEA Group?

I like to work with a company that has a strongvision and I want to contribute to a better life forall our co-workers. This motivates and inspires meevery day, and I like that my effort is appreciated.

What’s next in FY16?We have decided to start an annual global TalentFocus Week. There will be various activities andevents to help our co-workers see what opportu-nities they have to grow and develop within IK EA.Our mind-set is that everyone is seen as a talent.

Steve HowardCHIEF SUSTAINABILITY OFFICER

What do you do?My job is to lead sustainability for the IKEA Group.I describe myself as being co-responsible forsustainability alongside everyone else at IKEA.

Biggest achievements this year?Our factories in China now have 49-hour workingweeks or less. In the past ve years we’ve achievedwhat took almost 70 years to achieve in the indus-trialised world. Also, our lighting range is 100 %LED, and we’ve launched veggie balls – a healthy,affordable, sustainable alternative to meat.

Why work at IKEA Group?I love the fact that we’re a values-driven busi-ness, where we can almost always construct abusiness case to do the right thing.

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IKEA Group of companies

CENTRESShopping centres

GROUP FUNCTIONSBusiness Navigation & Finance • Property

Corporate Communications • HRLegal & Governance • Sustainability

Risk Management & ComplianceStrategy, Process, Organisation & IT

PRODUCTION

43 Production Units

20,500 Co-workers

RETAIL &EXPANSION

328IKEA Group Stores

116,500Co-workers

RANGE &SUPPLY

9,500Products

27Trading Service Of ces

15 Customer Distribution

Centres33

Distribution Centres18,000

Co-workers

Stichting INGKA FoundationOwner of the IKEA Group

The IKEA Group of companies(INGKA Holding B.V. and itscontrolled entities) has an own -ership structure that ensuresindependence and a long-termapproach. Stichting INGKAFoundation in the Netherlands isour owner, and its funds can beused in only two ways: it can bereinvested in the IKEA Group ordonated for charitable purpos-es through the Stichting IKEAFoundation.

INGKA Holding B.V. is the par-

ent company of the IKEA Group,located in Leiden, the Nether-lands. As per 31st August 2015,its Supervisory Board consists of:Lars-Johan Jarnheimer (Chair -man), Stina Honkamaa Bergfors,Tore Bertilsson, Luisa Delgado,Jonas Kamprad, Göran Lindahl,and Lone Fønss Schrøder. IngvarKamprad, the founder of IKEA, issenior advisor to the SupervisoryBoard. The IKEA Group is led byits President and CEO, Peter Ag -nefjäll, together with the Group

Management team.The IKEA Group operates

throughout the whole valuechain from range strategy andproduct development to pro-duction, distribution and retail.This includes our own manufac-turing units, purchasing oper-ations of ces, distribution andcustomer distribution centres,shopping centres and 328 storesin 28 countries. In total, theIKEA Group has operations in43 countries.

CharityStichting IKEA Foundation

Management of nancial assetsStichting IMAS Foundation

The IKEA Group(INGKA Holding B.V. and its controlled entities)

Chairman of the supervisory board: Lars-Johan JarnheimerPresident and CEO: Peter Agnefjäll

ASSET MANAGEMENTFinancial & Core related assets

The IKEA Groupoperates stores underfranchise agreements

The IKEA Group is one of 13 franchisees, oper-ating IKEA stores under franchise agreementswith Inter IKEA Systems B.V., the owner ofthe IKEA Concept and the worldwide IKEAfranchisor. Inter IKEA Systems B.V. is based inthe Netherlands and owned by the Inter IKEAGroup. Inter IKEA Group and IKEA Group aretwo separate groups of companies with differ-ent management and different owners.

All IKEA franchisees – also IKEA franchiseesthat do not belong to the IKEA Group – pay a3 % franchise fee to Inter IKEA Systems B.V.The franchise fee gives us, as an IKEA retail-er, the right to operate stores under the IKEA

Concept and IKEA brand. It grants access tosystems, methods and proven solutions aswell as staff trainings, manuals and updatesof the IKEA concept such as store layouts,

ttings and display concepts.

Improvedfranchise system

In June 2015, a letter of intenstating that Inter IKEA Systwill acquire range, supply chufacturing entities from the The intention is to improve chise system and enable the companies to focus on their businesses and build furthersuccess. The transaction is iclosed by August 31, 2016.

The new structure allowsGroup to focus even more oacross all channels. We are speed in transforming the IK

a multichannel retailer and e-commerce in all markets. changing retail landscape thing and exciting agenda reqattention.

I K E A G R O U P O F C


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ikea group yearly summary 2015,pdf

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