FACTS & FIGURES

THE IKEA GROUP 2006

Best quality at the lowest price

THE OPENING of the rst IKEA store in Japan was one of the high points of the year, with more than 35,000 customers attending the premiere! The move is a natural step for IKEA. Im convinced that the time is right and that we can live up to the high demands of Japanese customers. Japan is the biggest consumer market after the USA. Most people live in small spaces, so what we offer in the shape of smart storage solutions and prices that are considerably lower than those of our competitors, is ideal for this market. In 2007 we will be opening another store in Tokyo, and we plan to open more in the next few years. IKEA is planning to open a total of 24 stores in 2007. A KEY to success is offering the best quality at the lowest price. Thats why IKEA has invested extra resources in quality assurance in the past year not least with our suppliers who shoulder much of the responsibility for the end product. This work is reected clearly in our new launches. THE 2007 IKEA RANGE
JRI SOOMGI

2006 was a good year for the IKEA Group with sales up by 17 percent and 16 new IKEA stores worldwide.

Anders Dahlvig, IKEA Group President and CEO.

sands of customers the chance to buy their works at a fraction of art gallery prices.
IN 2006 THE FOCUS was on bedrooms and kitchens. Over the next year we will be concentrating even more on life in the kitchen with a wide range of everything from complete kitchens to utensils, tableware and glassware in different styles and price brackets. Presenting all the new carefully thought-out kitchen storage solutions will be particularly interesting. WERE NOW AIMING for new targets. The focus for 2007 will centre on four factors: Reduced prices. Continued quality assurance at all levels. Expansion. Continued focus on social and environmental issues.

includes a new furniture series and a unique art project. IKEA STOCKHOLM is a high quality collection containing products for nearly everything in the home, but at a price well below what similar products would cost elsewhere. The IKEA art event series of limited editions of works by six Swedish artists will give thou-

ANDERS DAHLVIG, PRESIDENT AND CEO OF THE IKEA GROUP.

IKEA

News
For 2007, a third of our range is new! Here are a few of our exciting new products.
KITCHENS IKEA wants to make life in the kitchen easier, smarter and more fun! Thats why were planning kitchens from the inside out with smart storage and great functionality. New products include co-ordinated kitchen and dining room furniture, cabinets, kitchen utensils, glasses and tableware. Kitchens shouldnt just be easy to use they should also be easy to buy. Thats why IKEA has introduced a new service covering everything from nance to installation. We also want to be the best in the world at pots and pans and will be offering an expanded range to cover every need. IKEA STOCKHOLM is a new collection of more than 80 products: textiles, vases, bookshelves, tables, chairs, sofas, armchairs, lamps and the like. Theyre classics of modern design in materials of the highest quality featuring attention to detail and comfort. TEXTILES AND RUGS will be another major focus area for IKEA in 2007. This years textiles are centred on design and Scandinavian identity. Textiles such as blankets, rugs, curtains and cushions help to create unity and comfort in a home. All are co-ordinated to team well with the rest of the range. BEDROOMS IKEA will strengthen its bedrooms offer. Women and dreams will be the focus, as the majority of IKEA customers are women. The result is a variety of exciting new products. Whats more, two new series are being launched Latex mattresses and high-class mattresses made from natural materials.

IKEA

IKEA

IKEA

OUR VISION

OUR BUSINESS IDEA

To create a better everyday life for the many people.

To offer a wide range of well-designed, functional home furnishing products at prices so low that as many people as possible will be able to afford them.

Better, simpler and less expensive

For more than 60 years IKEA has worked hard to create a better everyday life for the many people. This work is about constantly trying to do everything a little better, a little simpler and even more efciently.
AT IKEA WE TALK about low price with meaning. This is about always seeing quality in relation to need for both form and function. WE DESIGN THE PRICE TAG rst. Thats the principle behind all product development at IKEA. Its about co-operation between people such as product developers, designers, technicians, purchasers, and those responsible for quality and the environment. The products are designed by both in-house and external designers. Their task is to make the maximum use of raw materials and production methods to create new products.

IKEA OF SWEDEN in lmhult INDIRA bedspread has been sold at IKEA IDEAS ARE TESTED as early as develops the range, which for more than 30 years at the same price, includes 9,500 products. the outline stage, with thanks to increased volumes. Its about understanding regard to design, function people, and their lives at and quality. Just as imporhome where new needs arise constantly. tant is to take into consideration the amount These needs are, to a large extent, the same of materials used, production opportunities, the world over, and thats why IKEA has the efcient distribution and environmental same basis of products in all stores. Our inuence. And, last but not least: that everytarget group is most people all over the world, thing is done at the lowest possible price. with the focus on families with limited Hollow legs and particleboard as lling income and living space. instead of solid wood are just some of the

Kitchens are becoming an increasingly important place in our homes. IKEA has everything from complete kitchens to coffee cups.

methods used to save resources. Products should be economical in the use of resources, easy to transport and preferably made of renewable or recycled materials. Waste created in the manufacturing process should, where possible, be used in the production of other items. Products should be recyclable too.

to the strictest criteria: if laws and regulations for chemicals and other substances are tightened up in any country where IKEA is active, IKEA adopts the new rules in other countries too.
LDIS is a new stackable box made using plastic from IKEA loading ledges used to transport goods.

CUSTOMERS LIVE WITH our products and should be able to feel condent that they dont contain substances that can cause allergies or other harmful effects. IKEA always strives to adhere

with our suppliers has resulted in an effective production organisation. IKEA has co-workers on site around the world who follow production to try out new ideas, negotiate prices, and check quality and social and working conditions at suppliers. Being close to suppliers is
CLOSE CO-OPERATION

IKEA

80,000
is the number of times our kitchen drawers are pushed in and out to pass our quality tests!

EKTORP
is one of the worlds bestselling sofas. If all the EKTORP sofas sold in a year were lined up, they would reach from lmhult in Sweden to New York City, USA!

5,000
different quality tests were carried out on IKEA products at the development stage alone. More tests are done during production.

important for co-operation to work both practically and in the long-term. The Swedwood Group is IKEAs own industrial group which makes woodbased furniture and wooden components. As well as ensuring the availability of important products, one of their most important tasks is an increased understanding of production conditions.

oors, lamps and plants, and everything in between. By displaying the range in room settings, we want to inspire customers and show them smart solutions, as well as provide tips and ideas for different living situations. IKEA stores also offer help with interior design, delivery, assembly, curtain-making etc.
TROFAST is a multifunctional piece of storage furniture made from recyclable solid wood.

EFFECTIVE DISTRIBUTION is an important piece of the jigsaw in achieving a low price. Its about simplifying and making the path from supplier to customer as cost-effective and environmentally-adapted as possible. Flatpacks play an important part, as they ensure IKEA is not transporting air, which helps keep costs down and reduce the impact on the environment. IKEA STORES

is our most important marketing channel. This years catalogue was printed in 175 million copies in 55 editions and 27 languages.
THE IKEA CATALOGUE

THE INTERNET is an information channel that is being used more and more. During the nancial year 2006 IKEA websites attracted 278 million hits all around the world. Shopping on the net accounts for a small but evergrowing proportion of total IKEA sales.

have everything for the home under one roof: kitchens and bathrooms, sofas and chairs, beds and textiles, rugs and

Our co-workers
The IKEA vision is to create a better everyday life for the many people. Its our co-workers around the world who transform this vision into reality. Today IKEA has more than 100,000 co-workers in 44 countries.
OUR HUMAN RESOURCE IDEA
MAGNUS GLANS

is simple: to give down-to-earth, straightforward people the opportunity to grow, both as individuals and in their professional roles, so that together we are committed to creating a better everyday life for ourselves and our customers.

Ivan Susak and his colleagues on the IKEA Helpdesk in lmhult help IKEA co-workers around the world with computer questions.
MAGNUS GLANS

AT IKEA WE TALK about co-workers rather than employees. The word co-workers is a better description of the way we see people and their values than employees. Whatever their role, co-workers are an important part of the whole, and its only by working together towards the same goals that we succeed. OUR CORPORATE CULTURE IS ABOUT

shared values, such as together, respect, simplicity, and cost-consciousness. IKEA encourages innovation and not being afraid of making mistakes.

Elisabet Morgado, a co-worker at the IKEA store in Badalona, Spain.

WANT TO WORK AT IKEA? IKEA

is growing fast and will be recruiting lots of new co-workers in the next few years. You can look for jobs on the website: www.IKEA.com.

Co-workers by function
Purchasing, distribution, wholesale, range and other 11,300 The Swedwood Group 12,900

Co-workers by region
Asia and Australia 3,500 North America 11,000

Retail 79,800

Europe 89,500

Social and environmental issues

At IKEA we talk about low price but not at any price. This means that all products must be manufactured in a responsible manner with as little effect on the environment as possible.
IKEA SUPPORTS DIFFERENT activities

IKEA has specially trained auditors who follow up IWAY demands and help suppliers with action plans. We also appoint independent auditors who carry out random checks and verify working methods and results.
IKEA CO-OPERATES

and projects to protect the environment and help create a better everyday life for everyone who works for our suppliers and their sub-contractors. This task is a continuous process and strives for constant improvement. Great progress has been made, but there is still much left to do, both within IKEA and at our suppliers.

with companies, organisations and authorities both globally and locally. Social and environmental responsibility issues are complex and require inuence from many parties. Thats why we work with organisations such as UNICEF, Save the Children and WWF. The focus is on preventing child labour and supporting responsible forestry in countries where IKEA is operational. to keep the best interests of the child in focus and works in accordance with the UN Convention on the Rights of the Child (1989). We do not accept child labour and work actively to prevent it occurring. There is a special code of conduct called The IKEA Way on Preventing Child Labour that all suppliers and sub-contractors must adhere to.

INCREASED AWARENESS AND RESPONSIBILITY

are important factors in our work on social and environmental issues at IKEA. All co-workers receive basic training in these areas. IKEA also has its own specially trained auditors and environmental co-ordinators. All to ensure that issues concerning the environment and social responsibility form a natural part of our daily work.

IKEA STRIVES

IKEA PRODUCTS must be manufactured under acceptable working conditions by suppliers who take responsibility for the environment. Suppliers who work with us must follow our code of conduct The IKEA Way on Purchasing Home Furnishing Products (IWAY). IWAY species the minimum requirements IKEA places on suppliers and what they can expect from IKEA. Suppliers, in turn, must be responsible for making sure their sub-contractors full the requirements. These include issues such as working environment, child labour, discrimination, minimum wage, overtime payment, freedom of association and collective bargaining, emissions into air and water, and the handling of waste and chemicals.

responsibly managed forests. IKEA does not accept timber from intact natural forests or from forests with a clearly dened high conservation value. IKEA has particular requirements for tropical hardwoods. They must be certied in accordance with current standards for responsibly managed forests. The long-term goal is for all wood used to make IKEA products to come from veried well-managed forests. The only current standard that meets this goal is that of the Forest Stewardship Council (FSC), which works to promote environmentally appropriate, socially responsible and economically viable use of the worlds forests.
WOOD MUST COME FROM

1. IKEA and UNICEF work together to prevent child labour in northern India. The project includes alternative learning centres (ALCs), which help tens of thousands of children to enter the ordinary school system.

DAVID ORR/IKEA

1
DAVID ORR/IKEA DAVID ORR/IKEA

2. Illness and disability in families can lead to children being forced to work. Thats why IKEA works with UNICEF and WHO to make sure newborn children and pregnant women in northern India are vaccinated.

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IKEA

3. IKEA runs development projects with organisations including WWF to contribute to the responsible management of forests around the world. IKEA also works on comprehensive action plans and, among other things, places demands on suppliers purchasing procedures.

MORE ON OUR WORK. Social & Environmental Responsibility Report 2005 describes our work on social and environmental issues in detail. Find it on: www.IKEA-group.IKEA.com

4. In co-operation with UNICEF and one of our suppliers, IKEA runs a project that gives women the opportunity to help support their families by embroidering cushions. These cushions are then sold as part of the PS GRINDTORP range in IKEA stores.

Ingvar Kamprad, who founded IKEA, talks to co-workers during a visit to Moscow, Russia.

From lmhult to Tokyo

1943 1951 IKEA is founded. The rst IKEA catalogue is distributed.
1955 IKEA starts to design its own products.

1956 Flatpacks key contributors to low price are introduced.

1958 The very rst IKEA store opens in lmhult, Sweden.

1963 The rst IKEA store outside Sweden opens in Norway.

1965 The IKEA store at Kungens Kurva outside Stockholm, Sweden, opens, and the self-serve concept is born.

1973 The rst IKEA store outside Scandinavia opens in Switzerland.

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HANS-JRGEN BURKARD

Simplicity is a virtue
THE NAME IKEA COMES FROM

the initials of the founder, Ingvar Kamprad, the farm Elmtaryd, and the village Agunnaryd where he grew up in Smland, Sweden. Ingvar Kamprad was only 17 when he registered the IKEA name and embarked on his business career selling pens, Christmas cards and packets of seeds. Five years later he introduced the rst furniture into the range in the form of RUT armchair. These humble origins have created the unique IKEA culture founded on values such as respect for money, the will to renew, and the courage to take on responsibility. Selfcriticism, humility and the ability to compensate for ones own shortcomings are other cornerstones of the IKEA culture, personied by Ingvar Kamprad himself. develop this culture than the founder himself. Ingvar Kamprad retired from his post as Group President in 1986 but continues to work tirelessly for the company as Senior Advisor to the board. He is

also a critical store customer, a watchdog for the IKEA concept and quality, a source of inspiration, and a visionary. Ingvar Kamprad has always had great faith in human nature and an individuals ability to create and change. What we want, we can and will do. Together. A glorious future! is a motto well known to co-workers from his Testament of a Furniture Dealer from 1976.
HIS LIFES WORK has contributed greatly to the IKEA vision: to create a better everyday life for the many people. Its a vision founded on a unique blend of humanitarianism and capitalism. The farmers son from Smland is today celebrated and acclaimed worldwide as an entrepreneur. But fame has not tempered Ingvar Kamprads enthusiasm for making sure customers get a good deal from IKEA. His instinct for practical details is classic and is complemented by an impressive knowledge of furniture design and production. He himself has said: No-one has made as many mistakes as I have.

NO-ONE HAS DONE MORE to

1978 BILLY bookcase an IKEA classic is born.

1985 The rst IKEA store opens in the USA.

1991 IKEA establishes the industrial group, Swedwood.

1995 The rst IKEA PS collection is launched.

1998 IKEA opens its rst store in China.

2000 IKEA opens its rst store in Russia.

2004 IKEA opens its rst store in Portugal.

2006 IKEA opens its rst store in Japan.

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The IKEA Group

The founder of IKEA, Ingvar Kamprad, has been keen to create an ownership structure and organisation that stand for long-term independence and security. Thats why the Stichting INGKA Foundation was set up in 1982 and the following organisation developed.
Stichting INGKA Foundation The foundation
The IKEA Group is owned by a foundation the Stichting INGKA Foundation which is registered in the Netherlands.

INGKA Holding B.V.

Parent company
INGKA Holding B.V. is the parent company of all IKEA Group companies.
INGKA Holding B.V Supervisory Board: Hans-Gran Stennert (Chairman), Peter Kamprad, Lars-Johan Jarnheimer, Gran Lindahl, Carl Wilhelm Roos, Bruno Winborg, Magdalena Gerger. Ingvar Kamprad (Senior Advisor).

The IKEA Group

The IKEA Group consists of a number of companies from the industrial group Swedwood to the retail companies that own the stores in each country.
IKEA Group Management: Anders Dahlvig (Group President and CEO), Ian Duffy, Hans Gydell (Group Vice President), Sren Hansen, Peter Hgsted, Lars Gejrot, Pernille Lopez, Mikael Ohlsson, Josephine Rydberg-Dumont, Gran Stark, Werner Weber.

Range
IKEA of Sweden develops the range which comprises some 9,500 products.

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IKEA Services B.V. IKEA Services AB

Work within the Group is supported by nine staff units in Holland (IKEA Services B.V.) and Sweden (IKEA Services AB).

Supply
The IKEA Group has: 45 trading service ofces in 31 countries 1,300 suppliers in 54 countries 26 distribution centres and 10 customer distribution centres in 16 countries. The Swedwood Group has: 36 factories and sawmills in nine countries.

Retail
The IKEA Group has 210 stores in 24 countries, and is the largest franchisee of the IKEA concept, which is owned by Inter IKEA Systems B.V.

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IKEA in brief
IKEA Group sales for the nancial year 2006 (1 September 200531 August 2006) totalled 17.3 billion euros.
Sales 19962006 (billions of euros)
17.3 14.8 12.8 11.0 11.3

4.4

1996

2002

2003

2004

2005

2006

Sales by region
Asia and Australia 3%

Top ve sales countries

Germany USA UK France Sweden 17% 12% 9% 9% 8%

Purchasing by region
North America 3%

North America 17%

Top ve purchasing countries

China Poland Italy Sweden Germany 18% 14% 8% 7% 6%

Asia 28%

Europe 80%

Europe 69%

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In 2006, IKEA stores around the world had a total of 458 million visitors.

THE IKEA GROUP OPENED 16 new stores during 2006. In August 2006 there were 237 IKEA stores in 34 countries/territories. The IKEA Group owns 210 IKEA stores in 24 countries. The other 27 stores are owned and run by franchisees outside the IKEA Group in the following 15 countries/territories: Australia (2), United Arab Emirates (2), Greece (2), Hong Kong (3), Iceland (1), Israel (1), Kuwait (1), Malaysia (1), the Netherlands (1), Saudi Arabia (2), Singapore (1), Spain (4), Taiwan (3), Turkey (2) and the USA (1). For a list of all IKEA Group stores, visit: www.IKEA-group.IKEA.com THE NUMBER OF CO-WORKERS

THE SWEDWOOD GROUP is the IKEA industrial group, producing wood-based furniture and components. It has 12,900 co-workers and 36 factories and sawmills in nine countries. THE IKEA RANGE comprises 9,500 products and is the same in IKEA stores all round the world. THE IKEA CATALOGUE was printed in 175 million copies in 55 editions and 27 languages. THE IKEA WEBSITES

attracted 278 million visitors.

in the IKEA Group is

104,000.
THE IKEA GROUP has operations in 44 countries: 45 trading service ofces in 31 countries 1,300 suppliers in 54 countries 26 distribution centres and 10 customer distribution centres in 16 countries.

FOR MORE INFORMATION ON IKEA,

please visit your local country site via www.IKEA.com or via our corporate website www.IKEA-group.IKEA.com

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MAGNUS GLANS

Facts & Figures produced in September 2006 by Corporate PR, IKEA Services AB. Printed on non-chlorine paper according to the criteria of the Nordic Swan Mark. Cost: 0.5 euros.

www. IKEA-group.IKEA .com