Ingka Group (Ingka Holding B.V. and its controlled entities)
Annual Summary Report FY19
2019 Thinking Outside The Box.
People. Planet. Positive.
Contents
IKEA Annual Summary Report | FY19
Hej! [ A big Swedish hello to you!]
03 05 07 09 11 13
Letter to Shareholders This is the Year Opening Doors To Change Reducing Our Climate Footprint One Step at a Time People and the Planet Together is Better Building Better Lives Empowering Refugees Our Financial Year FY19 Transforming and Performing
15 16 17 19 21 23
Making Our Mark IKEA Retail and Ecommerce Taxes Taxes Taxes Taxes Taxes Taxes Consolidated Income Statement 1 September – 31 August Consolidated Balance Sheet 1 September – 31 August Consolidated Cash Flow Statement 1 September – 31 August Looking Forward to 2020 A Better Tomorrow
This is IKEA.
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IKEA Annual Summary Report | FY19
LETTER TO SHAREHOLDERS This is the year that’s seen us open in new markets, achieve solid sales and take the first steps on our transformation journey to becoming more accessible, convenient and people and planet positive. We’re in an exciting moment! It’s been a year of successes and challenges. Now it’s time to build on 75 years in the business of home furnishing and our deep knowledge of life at home, retail and logistics, to welcome the future’s challenges and opportunities. We’ve supported people to realize their dreams and and needs at home, but in reality, we’ve only just begun our journey Climate change is no longer a distant threat, but a visible reality, affecting the lives of many millions of people around the world. Disruption caused by climate change - already affecting our business today - will continue to increase business costs and harm the health and well being of our customers and coworkers everywhere, undermining the foundations of our success. Democratic Design continues to be what makes IKEA unique. Every IKEA product is designed to match a challenging-but-important formula that optimizes form, function, quality and sustainability at a low price, Because, combined with our knowledge of life at home, our range is how we make people’s everyday life better We’ve ignited the biggest transformation of our business is modern times, With our existing and new store formats, more delivery options, assembly and installation services and unique digital solutions, we’re becoming more accessible to people wherever they are, whenever they want. This journey is also about being more affordable and more sustainable, because it’s by transforming in all these ways that we’ll meet the needs of the many people. Now there are more invitations to discover IKEA, with Ingka Centers creating shopping centers that are even better experiences for a great day for the whole family. Our vision remains. Always to create a better everyday life for the many people We believe in the talented people behind IKEA and our future holds more opportunities to create even better places to work and develop. We also believe in our cutomers, and listening to and learning from them shows us the trends and shifts that lie ahead of us. Our values are at the heart of what we do, Simplicity, cost consciousness, entrepreneurship and togetherness are important to us. With humbleness, we want to lead by example and contribute to a better tomorrow for our customers, our business and ourselves.Most things remain to be done, There’s so much potential, and that’s what I’m excited about, Because the future we face is a glorious one.
Jesper Brodin President and CEO
Ingka Holdings B.V. and it’s controlled entities
04
Even though millions of people know us by name, we feel little is known about who we really are.
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IKEA Annual Summary Report | FY19
IKEA Annual Summary Report | FY19
To Change... For the past 75 years,
More affordable
we’ve been driven by the IKEA vision of creating a better everyday life for the many people. From flat packs to the veggie dog, we’ve always looked for ways to innovate and improve the way we meet the needs and dreams of our customers. Today, we see big global movements in technology, digitalisation, urbanisation and environmental awareness that fundamentally change the way we live and shop. For us, this means many challenges and vast new opportunities. But most of all, it means change.
All over the world, more people are improving their living situations and getting a chance at creating a better life and a better home. But space is tight, and most wallets are thin. As we grow, we must stay cost-effective so that we can reach an increasing number of customers with the products and services they want at prices they can afford.
Change everything (almost)
Today, convenience and accessibility is key. More people are moving into cities. Many don’t have, or even want, a car. People shop more online and expect faster and better services. To get closer to our customers, we need to offer a great experience in all channels – in our stores and shopping centres, in cities and online. And it all needs to be integrated with seamless services for delivery, assembly and installation that are both fast and sustainable.
To adapt to this new reality, we’ve ignited the biggest transformation in IKEA history – and we’re changing everything (almost). In order to reach more people than ever before, we’re creating new digital solutions and improving our delivery, assembly and installation services. We’re investing in our existing stores, opening new city stores and other touchpoints and continuing to integrate our retail business with our shopping centres. On top of this, we’re investing in innovative start-ups and companies that can help us move even faster. The transformation is also about becoming people and planet positive and making healthy and sustainable living an attractive and affordable choice for as many people as possible. As we transform, we’ve identified three critical challenges that we’re determined to turn into our greatest opportunities: affordability, accessibility and sustainability.
closer to our customers
People and planet positive Climate change, unsustainable consumption and inequality are real threats facing our business and our planet. Our values, size and reach give us an opportunity to lead. We want to grow a sustainable, fair and inclusive business that inspires and enables millions of people to live better everyday lives within the limits of the planet.
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Reducing Our Climate
FOOTPRINT Good D esign is S u s ta in a b l e De s ign Our homes and the way we live have a huge impact on the planet, our health and our wellbeing. Like most people, our customers want to enjoy a decent quality of life without negatively impacting the environment – but not at the expense of price, quality or convenience. Sustainability can’t be a luxury for the few. We know our customers want IKEA to help make living a more sustainable life affordable, attractive and accessible. By promoting sustainable home furnishing and food products, services, life-at-home knowledge and inspiration, we can make healthier and more sustainable living possible for the many people. To achieve this, we actively listen to people in each of our markets and work together with others to create meaningful connections and experiences. By 2030 our ambition is to inspire and enable more than 1 billion people to live a better everyday life within the limits of the planet.
Sustainabl e Grow th Sustainable Growthis circular. Just like our financial model, where out profit goes back into the business, we believe that trating waste as a new resource - the circular economy - will be a defining movement of out era.
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IKEA Annual Summary Report | FY19
2019 Sustainable Highlights...
93% We generated
AT A TIME. ONE STEP
renewable energy equivalent to 93% of the energy used in our operations
210,000 Produced renewable energy equivalent to 93% of the energy we use in our operations and in 2020 we are on track to exceed our goal to reach 100% Launched our Learning
In FY19 we: Committed to zero-emission home deliveries in five cities by 2020 and reached this milestone in Shanghai in January 2019
Tested urban farming to produce salad greens and herbs for our restaurants that are fresher and have a lower carbon footprint, compared to conventional production
at IKEA Greenwich to inspire customers about sustainable living through an immersive in-store experience
Phased out single-use plastic items for serving food in our IKEA restaurants and IKEA bistros in Canada and the UK, with other countries to follow in 2020 Updated our approach to instore and online communication and information to highlight the sustainability aspects and benefits of what IKEA has to offer
Engaged 60,000 around the world to adopt more sustainable everyday habits through our IKEA Better Living app
Hectares of responsibiliy managed
forests
920,000 Solar panels
on the roofs of our stores and warehouses
Launched 10 plant-based recipes that are good for our customers’ health and reduce greenhouse gas emissions, compared with meat alternatives Gave 47 million products a second life by repacking and reselling products in stores – that’s over 70% of all the products that could potentially go to waste
Our goal is to buy all of our major materials from more sustainable sources by 2020.
534 Wind Turbines
and 2 solar farms in 14 countries
Did you know? Our bathroom taps reduce water consumption up to 50% Our showersheads can help save up to 30% water & energy. Our kitchen taps reduce water consumption by up to 40%
50% 30% 40% 08
people and the
TOGETHER IS BETTER One E a r t h With only one planet and limited resources, the long-term prosperity of our communities depends on our shared effort to tackle the climate change and shift towards a more circular society. Our Ambition is to become climate positive by reducing more greenhouse gas emissions than our value chain emits. We’ll go all-in to transform our operations so that we contribute to a circular society that strives for zero waste. Taking climate action and becoming circular makes good business sense – and it’s what our customers expect.
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D i d Yo u K n o w ? The current trend is that there will be more plastic than fish in the world’s oceans by 2050. To help stem the flow of plastic into the ocean, we have committed to eliminating single-use plastic from the IKEA product range and food outlets by 2020.
A Waste- F r ee W o r l d Growing a successful sustainable business doesn’t just happen overnight,. That’s why we take a long-term approach to all that we do - customer by customer, product by product, experience by experience, and market by market, We successfully gave 47 million recovered products a second life. 38 million products were resold through the As-Is area, and more than 9 million products were repacked and sold. We are on an exciting journey to become 100% circular. Here you can read about two examples of how we’re turning materials that have traditionally been viewed as waste into beautiful, functional products.
IKEA Annual Summary Report | FY19
FÖRÄNDRING Change is in the air. Turning waste into products.
MUSSELBLOMMA Turning plastic waste into beautiful textiles
We’re also concerned about the plastic in our oceans. That’s why we created MUSSELBLOMMA using ocean found plastic, in collaboration with Spanish fishermen. With our partners, we’re looking for new ways to turn pollution into home furnishing products. With the help of our fishermen, we catch huge amounts of plastic pollution in their fishing nets daily. This waste is collected in containers, and then sorted, cleaned and turned into flakes, pellets, yarn and fabric. The result is seen in the MUSSELBLOMMA collection – a bag, two cushion covers and a tablecloth made from recycled plastic. The polyester fabric used in the collection is made from recycled plastic, which includes PET plastic waste that was collected by the Spanish fishermen. The project is in line with our commitment to becoming a circular business by 2030. Our goal is to have all our products and packaging materials to be based on renewable and/or recycled materials by 2030. We also aim to phase out single-use plastic from our product range by 2020, as single-use plastic products are one of the major contributors of plastic in our oceans.
While visiting northern India, Helene Davidsson - Sustainability Manager at Inter IKEA Systems B.V. - was shocked by the level of air pollution. Determined to help, she inspired the Better Air Now Initiative, which aims to reduce air pollution in the region by turning crop residues that would otherwise be burnt into renewable materials and products. The first result can be seen in the FÖRÄNDRING collection. With our Better Air Now initiative, we worked out ways to turn rice straw into products like the FÖRÄNDRING collection of baskets, rugs, bowls, and more. This not only results in beautiful, sustainably sourced products but also encourages rice growers to practice more sustainable farming. And in the end, we can all breathe a little easier.
According to the World Health Organization (WHO), 9 out of 10 people breathe polluted air. Air pollution is particularly problematic in India, with 95% of India’s population of 1.2 billion people breathing polluted air every day. In fact, nine out of the ten most polluted cities in the world are in Northern India. One of the major contributors to India’s air pollution is the burning of rice straw, a rice harvest residue.
G U N R I D Other Steps to Reduce Air Pollution
We’ve also developed GUNRID, an air purifying curtain to reduce indoor air pollution. The innovative textile breaks down common indoor air pollutants such as formaldehyde. The curtain uses a technology IKEA has been developing in collaboration with universities in Europe and Asia. In addition, the biggest IKEA franchisee the INGKA Group, is striving for zero emissions from home deliveries by 2025. As of January 2019, INGKA has already achieved zero emissions target for Shanghai, a year ahead of schedule. We are committed to actively reducing air pollutants and helping people to purify the air in their homes. We know that there is no single solution to solve air pollution and we are always in search of new ways to contribute to a world of clean air.
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BETTER LIVES
“By employing refugees, IKEA is charting a path that should inspire other forward-thinking businesses. Enabling refugees to realize their potential and contribute to the communities where they live—as co-workers, entrepreneurs, innovators, taxpayers, and consumers— is both an expression of humanitarian values and good business sense.” Fillipo Grandi, UN High Comissioner for Refugees
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IKEA Annual Summary Report | FY19
The IKEA Foundation is committed to helping people forced to flee their homes, and the communities who host them, improve their incomes so they can become more self-reliant.
Empowering refugees to fulfil their potential Millions of people around the world are displaced by violence, economic and environmental crises, and social persecution. When they arrive in a new place, they can find it challenging to integrate into their host community, but they often bring lots of talent skills and experience with them. Businesses like ours can play an important role in supporting them to build a new life, and contribute to the community and local economy. As the refugee crisis continues to unfold, we have been active in supporting local organizations with essential items needed to provide better conditions for newly arrived refugees. In FY19, many IKEA co-workers have volunteered and are continuing to volunteer their time and assistance to help refugees to re-establish their lives in new communities. And in some countries, we have started longer term programmes that help refugees integrate into the workforce.
Contributing to thriving Communities We want to play our part in contributing to thriving and inclusive local economies, We aim to have a positive impact on communities and people in our value chain and to use our voice to highlight important issues.
Our approach includes: partnering with community or-
ganizations to find solutions to social and environmental challenges; creating income opportunities for vulnerable people by working with social enterprises; investing in skills and work experience for refugees, migrants, people with disabilities, engaging our co-workers and customers to contribute to their local communities.
Welcoming refugees is not charity. For us, it is a chance to have a positive impact on individual lives and local communities, while also benefiting from more diverse skillsets in our workplaces.
Building skills for employment Our commitment to that diversity means we see the potential talent and everyone - including those who are struggling to access the labor market. We want to support people who lack skills, experience, or face other barriers, to find work with us or another employer. By reflecting the diversity of our local communities, we broaden our customer base into new countries and better understand our customer’s needs.
We’re supporting young people, people with disabil-
ities, people over 50 years old, migrants, refugees, and women who have been out of the workplace. In FY19, we ran in projects in 16 countries ,often in partnership with local NGOs in public bodies, providing skills development and work experience placements. We ramped up our commitment increasing Refugee inclusion this year. In FY19, stores in nine countries ran initiatives to support refugees’ skills development and help them find work within our companies. In five countries, we sold TILLTALANDE, a textile collection from the Jordan River Foundation, that has created 250 jobs for local Artisans and women refugees in Jordan in partnership with IKEA.
We’ve launched several initiatives to support refugees
and scale up our impact. By 2022, we aim to have 300 units supporting refugees with skills for employment initiatives. We’ll also contribute to creating more jobs for local artisans and female refugees in Jordan by selling their products in all countries.
co-creating change Asma arrived in Norway from Afghanistan in 2016, and in 2018, she became one of the newest recruits to the IKEA Furuset store in Oslo. “This project has changed my life 100%. I could not imagine at all that I would get a job within the first year of arriving in Norway, but I now have a part-time job and I make my own money. At the same time, I have colleagues and friends at work that I can talk to and keep practicing my Norwegian,” she says. Our skills for employment programs give refugees like Asma the chance to gain work experience and develop their language skills. The aim is to prepare them for future employment either with us or another company. It also enables them to actively contribute to their new communities.
250
Jobs Created
In FY19, we helped create 250 jobs for local Artisans and women refugees in Jordan in partnership with IKEA.
By advocating for positive change for refugees and Society we want to show other companies, organizations and key decision-makers the value of refugee integration into host communities and businesses.
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FACTS FACTS FACTS FACTS FACTS
AND FIGURES. 13
IKEA Annual Summary Report | FY19
Our Financial Year FY19 Transforming and Performing in a New World of Retail
2019 At a Glance
IKEA Retail
In 2019, we completed the first year of a three-year transformation program to build the future IKEA and to become more affordable, accessible and sustainable. We’re adapting the business model, the organisation, governance and processes to the challenges of fast-changing consumer behaviour, of digitalisation and automation trends and of a new competitive business environment.
IKEA Retail grew sales by 5.0% at constant currency and by 5.6% when including currency effects. The main contributors to our total IKEA Retail sales growth are Germany, Russia, France, the UK and Poland. The fastest-growing countries are Hungary, Russia and Romania.
During the year, we have invested in existing and new markets, moved into cities and tested new store formats resulting in capital expenditures of EUR 2.6 billion in 2019. We have invested in our digital development and provided better solutions for our coworkers to improve customer meetings. We have developed flexible and affordable services to shorten delivery times and improved ontime delivery for our customers. Summarizing 2019, we have both performed and transformed at the same time, showing continued growth of total Retail sales, based on strong growth of both store sales and online sales.
During the year, the positive sales growth from existing and new stores was complemented with strong online sales growth of more than 46%. The share of online in total IKEA Retail sales reached 11% in 2019. Kitchen and Bedroom furniture showed the strongest growth. Customer visits to IKEA stores remained at a strong level of 839 million. In addition, visits to IKEA.com increased by 10% to nearly 2.6 billion. Over the year we’ve opened 7 traditional stores, 11 smaller IKEA stores and IKEA planning studios in major cities like London, Moscow, New York and Paris. We also launched a new IKEA app, making it easier for customers to search, find and buy IKEA products, whenever and wherever.
Looking Ahead In 2020, we project continued growth in all sales channels and through expansion. As we are accelerating our business transformation, we plan for significant capital expenditures while also selling certain assets. In total, we are planning for investments significantly above last year’s level. Based on available liquidity, significant increase of external financing is not expected in the coming years. The principles of Ingka Group to secure long-term sustainable growth – earning money before we spend it as well as being innovative, cost-conscious and customer focused – remain unchanged. Our business transformation continues to be guided by principles of having the right speed and conscious risk taking while safeguarding our business and having a culture of performance and accountability. Above all and always, we are guided and inspired by our culture and values.
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MAKIN
FY19 – IKEA Retail sales per region 71%
18%
11%
Europe Americas Asia
FY19 – Top IKEA Retail selling countries 15%
13%
8%
7%
6%
NORTH AMERICA Germany the USA France
the U.K.
64 IKEA stores 14 Customer Distribution Centers 8 Distributions Centers
China
374 IKEA stores in 30
countries
In F19, our ecommerce sales grew by 46% • • • • • 15
839 million visits to IKEA stores 480 million visits to Ingka Centers meeting places 2.6 billion visits to IKEA.com 22.6million visits to the online IKEA catalouge 26 million visits to the IKEA store app IKEA Annual Summary Report | FY19
G OUR MARK RUSSIA 14 IKEA stores 1 Customer Distribution Centers 1 Distributions Centers 14 Ingka Center meeting places
ASIA 40 IKEA stores 9 Customer Distribution Centers 5 Distributions Centers 3 Ingka Center meeting places
EUROPE 246 IKEA stores 24 Customer Distribution Centers 15 Distributions Centers 28 Ingka Center meeting places
AUSTRAILIA 10 IKEA stores 3 Customer Distribution Centers 1 Distributions Centers
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CO
TA X E S
TA X E S TA X E S
OUR WIDER SOCIAL AND ECONOMIC IMPACT We’re strongly committed to managing our operations in a responsible way and to making a positive contribution to the societies in which we operate. We want to create long-term value through growth, a great customer experience and a positive impact on people and the planet. The taxes we pay are an important part of our wider economic and social impact. Ingka Group pays taxes in accordance with laws and regulations, wherever we are present, as a retailer or in any other role. In FY19, corporate income tax amounted to EUR 682 million globally (EUR 634 million in FY18), which equals an effective corporate tax rate of 27.2% (30.0% in FY18). In FY19, our total tax bill, including other taxes and duties such as property taxes, environmental taxes and customs duties, amounted to approximately EUR 1,140 million. Over the past five years (FY15–FY19), corporate income tax and other taxes and duties amounted to approximately EUR 6,888 million. In addition, we collected substantial tax amounts on behalf of governments, such as value added tax and employee taxes. Over these 5 years, we’ve also created tens of thousands of jobs, directly in our stores and warehouses, and indirectly with our external suppliers, which in turn generate taxable
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IKEA Annual Summary Report | FY19
EUR
6.9 billion
in corporate income tax over the last 5 years
Effective corporate tax rate (ETR) FY15–FY19 30.0% 24.9% 18.9%
FY15
27.2%
21.6%
FY16
FY17
FY18
FY19
The effective tax rate of 27.2% (2018: 30.0%) corresponds to an amount of EUR 0.7 billion incurred corporate income taxes.
ONSOLID C O N S O L I D AT E D I N C O M E S TAT E M E N T in millions of EUR
FY19
FY18
Sales of Goods
23, 986
23, 651
Franchise Fees
1,195
1,200
73
68
Total Revenues
25,254
24,919
Cost of Goods Sold
20,703
20,228
Gross Profit
4,551
4,691
Operational Cost
2,695
2,729
Total Operating income
1,856
1,962
-65
-257
1,791
1,705
-301
-256
-5
—
1,485
1,449
Other Income
Financial Income and Expense Total income Before Taxes Income Taxes Losses Form the Sale of Entities Net Income
* These comparative numbers are reclassified for comparability purposes. The included abbreviated financial information is derived from the consolidated financial statements of Ingka Holding B.V. This information is prepared in accordance with Part 9 of Book 2 of the Dutch Civil Code. An unqualified auditor’s report dated 18 November 2019 was issued on these financial statements. Ingka Holding’s Annual Report for financial year 2019 is available through the Dutch Chamber of Commerce. Ingka Group total revenue includes sales of goods, service income and rental income.
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CONSOL C O N S O L I D AT E D
BALANCE SHEET
FY19
FY18
Intagible Fixed Assets
2,240
2,124
Tangible Fixed Assets
24,451
23,565
Financial Fixed Assets
1,166
846
27,857
26,535
Inventories
2,273
2,027
Receivables
2,165
2,544
21,228
19,697
1,366
1,547
Total Current Assets
27,032
25,815
Total Current Assets
54,889
52,350
Assets (in millions of EUR)
Total Fixed Assets
Securities Cash and Short-Term Deposits
FY19 Total Assets - EUR 54,889 million
19
45%
6%
4%
Tangible Fixed Assets
Intangible and Financial Fixed Assets
Inventories
IKEA Annual Summary Report | FY19
6%
41%
Recievables
Cash and Short Term Deposits
LIDATED BALANCE SHEET Equity and Liabilities (in millions of EUR)
FY19
FY18
Group Equity
42,828
40,822
2,275
1,810
529
774
Total Non-Current Liabilities
2,804
2,584
Short-Term Loans
2,711
2,727
Other Current Liabilities
6,546
6,217
Total Current Liabilities
9,257
8,944
54,889 21,470
8,944 52,350 21,482
Provisions Non-Current Liabilities
Total and Liabilites EquityEquity and Liabilities
FY19 Total Equity and Liabilities - EUR 54,889 million
78% Group Equity
1% Non-Current Liabilities
4% Provisions
5%
12%
Short-Term Loans
Other Current Liabilities
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CONSOL C O N S O L I D AT E D
C A S H F L O W S TAT E M E N T in millions of EUR
OPERATING RESULT
FY19
FY18
1,962
1,296
488
860
81
(41)
(896)
(668)
1,697
1,387
ADJUSTED FOR:
Depreciation/amortisation Other value adjustments
63
Changes in provisions
Changes in financial fixed assets
(1)
Changes in working capital
Cash Flow From Business Operations
10
Interest Recieved
9
(69)
9
Income Tax Paid
(401)
(2015)
(413)
Cash Flow From Business Operations
1,101
677
Interest paid
(306)
INVESTMENTS IN:
(51)
Intangible Fixed Assets
(332)
Tangible Fixed Assets
Acquisition of Companies
Desinvestments in Tangible Fixed Assets
5
380
Cash Flow From Business Operations
21
(2)
IKEA Annual Summary Report | FY19
(16)
(280) (25)
(321)
LIDATED C A S H F L O W S TAT E M E N T in millions of EUR
OPERATING RESULT
Issuance of Debt
Repayment of Debt
Repayment of Borrowings Take-p of Long-term Debt
Take-up of Short-term Debt
FY19
FY18
1,962
1,296
(14)
(6)
(588)
(864)
463
1,269
—
95
57
166
Dividend Paid
(750)
(1,000)
Cash Flows From Financing Activities
(794)
(378)
(73)
(22)
Changes in Cash and Cash Equivalents
19 (54)
Cash anCash Equivalents at Beginning
284
302
(54)
(18)
Net Cash Flow
Exchange Rate and Translation Differences on Cash
Cash and Cash Equivalents at End Net Movement in Cash
230
4 (18)
284
* These financial statements cover the 12-month period which ended at the balance sheet date of 31 August 2019 (‘FY19’). Comparative figures reflect the 12-month period which ended at the balance sheet date of 31 August 2018 (‘FY18’). The cash flow statement is prepared using the indirect method. Cash and cash equivalents include cash and investments that are readily convertible to a known amount of cash without a significant risk of changes in value. Cash flows in foreign currency are translated into euros using the average rates. Currency translation differences with regard to cash
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Looking Forward to 2020 A Better Tomorrow
A sustainable world that provides a great quality of life for many people, respects human rights and protects the environment is possible. We can provide economic opportunities and empower people so they are able to better provide for themselves and their families. We can utilise the massive potential of renewable energy; we can develop exciting new products and services that help people live a more sustainable life at home; we can transform waste into resources; and protect our forests, farmlands, seas and rivers for future generations. We can help lift people out of poverty by providing good places to work throughout our value chain and contribute to creating a fairer and more equal society for the many people. IKEA can be a small, but significant, force in helping to create this more sustainable world. IKEA can grow in a way that creates opportunities and improves lives. As IKEA grows, we want to strengthen our positive impact and help meet the needs and aspirations of more families and households around the world. By 2020, around 500 IKEA Group stores will welcome an estimated 1.5 billion visitors per year, employ more than 200,000 co-workers, potentially generating 45-50 billion euro in turnover. However, while that growth brings many great opportunities, if we continue with a business as usual approach, our use of wood will almost double and our carbon emissions—across the value chain from raw material production to product end-of-life will increase from today’s 30 million tons to 50-60 million tons. We need to transform our business. To be able to fulfil future customer needs, promote equality and secure sustainable access to resources, while driving down emissions and maintaining our low prices, we need to do things differently. It’s no longer possible to use 20th century approaches to meet 21st century demands. Simply working towards being less bad will not get us where we need to be -we need transformational change - which means challenging old ways and embracing the new, being bold, innovative and committed to taking action. It means taking many steps, both large and small, that, together, will have transformational impact.
This is IKEA.
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IKEA Annual Summary Report | FY19
Colophon Amina Shareef IKEA Annual Report Typo Photo, School of VCD Professor Sanda Katila
Typefaces: Avenir Next & Bebas Neue Printing: Digitally Printed Stock: 32 lb stock
Sources 1
Annual Summary & Sustainability Report | FY19 | Ingka Group
2
Inter IKEA Holding BV Annual Report FY18
3
IKEA 2017 Yearly Summary
4
https://about.ikea.com/en/sust ainability/becoming-climate-pos itive/change-is-in-the-air
5
https://about.ikea.com/en/sust ainability/a-world-without-waste /turning-plastic-waste-into- bea utiful-textiles
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To learn more visit: www.ikea.com Contact Information: Tel +1-888-434-4532 www.ikea.com/ca/en/customer-service Headquarters: Leiden, Netherlands
