IKEAFinancial analysis

Evelien Daneels 2AF3

Overview

The company and its business idea Financial results (2011) Conclusion

The company & its business idea

Low prices Sweden 1943 World's largest furniture retailer 287 stores 26 countries

The company & its business idea

106500

165008000

Employees per region

EuropeNorth AmericaRussia, Asia & Aus-tralia

Financial results(IN MILLION OF EURO) 2011 2010Revenue*Cost of sales

25.17313.773

23.53912.454

Gross profitOperating cost

11.4007.808

11.0857.888

Operating incomeTotal financial income and expense

3.592165

3.19776

Income before minorityinterests and taxesTax

3.757

781

3.273

577

Income before minorityinterestsMinority interests

2.976

(10)

2.696

(8)

Net income 2.966 2.688

*The revenue includes sales of goods and rental income from commercial property.Source: http://www.ikea.com/ms/en_GB/about_ikea/facts_and_figures/facts_figures.html

Consolidated income statement

Financial results

2010 201122,000

23,000

24,000

25,000

26,000

Revenue (total sales)

Million e

uro

+6,9%

Financial results

79%

14%

7%

Sales per region

EuropeNorth AmericaRussia, Asia & Aus-tralia

Source: http://www.ikea.com/ms/en_GB/about_ikea/facts_and_figures/facts_figures.html

Financial results

2010 20112,500

2,600

2,700

2,800

2,900

3,000

Net income

Million e

uro

+10,3%

Financial results

2011: 7 new stores Costs are kept low

Financial resultsAssets Liabilities

Source: http://www.ikea.com/ms/en_GB/about_ikea/facts_and_figures/yearly_summary.html

Financial results

Investments 3 million EUR stores, factories and retail centers expansion of wind farms and solar power

sources Goal of 100% renewable energy

Conclusion

Growth Prices Raw material costs Efficient cost control + choice of

suppliers strong company

The Ikea concept