DOCSLIB.ORG

Annual Summary & Sustainability Report FY20

Total Page：16

File Type：pdf, Size：1020Kb

Download full-text PDF Read full-text
Annual Summary & Sustainability Report FY20 Annual Summary & Sustainability Report FY20 Ingka Group (Ingka Holding B.V. and its controlled entities) A better life at home in a year like no other Co-workers transforming the store into a fulfillment hub at IKEA Burlington, Canada during the ongoing pandemic. IKEA Retail Business ANNUAL SUMMARY & SUSTAINABILITY REPORT FY20 Contents Ingka Group Our Covid-19 response 2 In March 2020, Ingka Group launched a We are Ingka Group range of emergency actions in response to 4 About Ingka Group the coronavirus pandemic. EUR 26 million 6 A message from Jesper Brodin in FY20 was granted to support communities 8 Our Coronavirus pandemic response impacted by the pandemic. Additionally, we provided income stability for our co-work- ers, including extended parental leave for Growing from our Swedish roots 12 parents with children home from school. Our business Driven by the IKEA vision to create a better everyday life for 14 IKEA Retail - Our business transformation the many people, we bring the IKEA Brand to millions of homes. Read more on pages 8-10. 16 Our Life at Home research We’re united by our culture, values and entrepreneurial spirit. 18 Fast-tracking transformation of stores and services Togetherness, simplicity, cost-consciousness and caring for 22 A more affordable and sustainable IKEA people and the planet, are some of the values that drive us to 24 Our omnichannel transformation constantly innovate and improve our way of working. 28 Our retail expansion - Ingka Group openings in FY20 30 Our retail expansion - making big moves in big cities Passionate about life at home 32 Making sustainable living affordable We’re passionate about life at home; about bringing well- Leaping from AR to AI Redefining life at home 34 Ingka Investments: Investing in purpose-led growth designed, functional, durable, affordable and sustainable 38 Ingka Centres: Creating new meeting places in cities and online home furnishing solutions to people with big dreams and thin Ingka Investments has acquired Geomagical We believe that home is the most important wallets. In a year when home has become even more central Labs, a leading developer of 3D and visual place in the world. In a year when we spent to the lives of the many, we’ve worked even harder to meet the AI solutions for interactive home furnishing more time at home than ever, the seventh 42 changing needs of our customers, whether it’s online, through inspiration. By making it possible to scan your IKEA Life at Home Report explores how the Creating a people movement our customer service or in our IKEA stores. By continuing the home with a smartphone and see in photo- events of this year have changed our relation- 44 Our people strategy largest transformation in IKEA history, we will reach more realistic 3D how it would look with any IKEA ships to home, and how they will inform the 46 Caring for our people customers in more ways, with the products and services they furniture, Geomagical offers an enhanced way we live in the future. 48 Living our values want, at prices they can afford. digital meeting that makes designing your 50 Building skills for the future home a fun, inspiring and instantly accessi- Read more on pages 16-17. 52 Going all in on equality Making sustainable living affordable ble experience. Resourcefulness has always been part of our DNA. And we want 56 to have a positive impact on people and the planet – not only Read more on page 35. People and planet positive by going all-in to contribute to the IKEA ambition to be circular 60 Healthy and sustainable living and climate positive, but also by making healthy and sustainable 70 Circular and climate positive living attractive and affordable for as many people as possible. 84 Fair and inclusive 94 Sustainability governance and management Shaping the future of a better life at home We’re curious about the world around us, and want to make Custom designed DUGGREGN 96 a positive difference in people’s lives. As we continue our trans- LED wall lamp Financial performance and governance formational journey, we’re determined to lead home furnishing electric trucks retail into the future – engaging with even more people with € ,95 98 A message from Juvencio Maeztu our affordable, well-designed and sustainable home furnishing In FY20 we completed testing of two 19 100 Our financial year FY20 solutions for a better life at home. It inspires us even more today types of electric vehicle prototypes, 102 Taxes than ever before. developed for IKEA in collaboration 103 Consolidated income statement with Renault and MAN. These projects 104 Consolidated balance sheet - Assets are part of a wide range of initiatives Investing for our climate and partnerships to meet our 100% 105 Consolidated balance sheet - Equity and liabilities zero-emission goal. 106 Ownership structure and governance With continued investments in forestland, wind farms and solar parks, we exceeded 108 Business ethics Expanding in big cities The financial year 2020 (referred to as FY20) of the Ingka Group Read more on page 33. our 2020 goal to produce as much renewable (Ingka Holding B.V. and its controlled entities) refers to the period between 1 September 2019 and 31 August 2020 and the entities In FY20, we opened several new IKEA energy as the energy we consume in our 110 controlled by Ingka Holding B.V. during this time. Ingka Group stores in big cities like Moscow, Seoul and operations. In September 2020, we pledged Indices and appendix operates under franchise agreements with Inter IKEA Systems B.V., Tokyo. We also started to make real estate to invest EUR 600 million more to reach the the worldwide IKEA franchisor. 111 Our compliance with the UN Global Compact investments in city centres, with Ingka In- IKEA ambition to become people and planet 112 Our contribution to the UN Sustainable Development Goals vestments acquiring a building in Paris and positive by 2030. This increases our overall Inter IKEA Systems B.V. is part of Inter IKEA Group, which also 114 About our sustainability reporting includes IKEA range, supply and certain industrial activities. Ingka Centres acquiring inner city malls in investments into sustainability to EUR 3.8 118 Circular and climate positive data Together with Inter IKEA Group and 11 other IKEA franchisees, downtown London and San Francisco. billion since 2009. 122 Women’s Empowerment Principles we improve and develop IKEA to be more relevant and inspiring. 124 Assurance report of the independent auditor On 25 January 2021, Inter IKEA Group will publish the IKEA Sustainability Report, which reports on all companies in the Read more on page 30. Read more on pages 36-37. 126 IKEA Foundation IKEA franchise system and value chain. 3 WE ARE INGKA GROUP | ABOUT INGKA GROUP ANNUAL SUMMARY & SUSTAINABILITY REPORT FY20 We bring IKEA into 3.6 EUR 1.2 billion visits to billion net profit IKEA.com people’s lives (EUR 1.8 billion in FY19) To be reinvested back into our business. IKEA Clean Energy Ingka Group brings the IKEA Brand to 30 countries in order to make millions of homes and lives better. We operate 378 Services in 11 countries IKEA stores, as well as worldwide ecommerce and digital solutions. Our expansion and reach are strengthened by our Sales grew by 90% and our community of clean energy producers and consumers network of meeting places and an active investment arm to support sustainable growth and business transformation. 9.4 million downloads of accumulated savings of over EUR 10 million the IKEA app and 63,000 tonnes of CO2. One brand, many companies IKEA is a franchise business. That means that many people and companies 151 million with different owners work under one IKEA brand, dedicated to one IKEA IKEA Family vision: to create a better everyday life for the many people. The franchisor 378 IKEA stores in 30 countries Inter IKEA Systems B.V. is responsible for continuously developing the IKEA 166,350 members Concept and ensuring its implementation in new and existing markets. co-workers At the end of FY20 we also had: Franchisees like Ingka Group provide valuable input based on consumer 58 smaller formats such as IKEA planning and market insights. studios and IKEA shops in cities Each year, the companies in the IKEA franchise system work together to 45 Ingka Centres meeting places in 15 launch more than 2,000 new products, develop new ways to make shopping countries more convenient, and help more than 800 million people to live healthier, 29 Distribution Centres in 18 countries Our most loyal customers are members more sustainable lives. 54 Customer Distribution Centres in 16 of IKEA Family. More than 29,000 new countries members join every day! Ingka Group – three businesses in one As the largest IKEA franchisee, Ingka Group represents the IKEA Brand through omnichannel retail in a variety of physical and digital formats, gen- erating over 90% of total IKEA Retail sales in FY20. Ingka Holding B.V. is the parent company of Ingka Group, and is based in Leiden, the Netherlands. Ingka Group is made up of three businesses, working closely together: IKEA 39 x 547 EUR 37.4 Retail, Ingka Centres and Ingka Investments. million products saved billion Ingka Group revenue (EUR 39.2 billion in FY19) IKEA Retail IKEA Retail is our core business, and we continue to expand in new and existing countries, with IKEA stores, and new customer meeting points, Total IKEA Retail sales We successfully gave 39 million recovered We have invested in 547 wind distribution units and omnichannel solutions. Every year, we welcome more amounted to EUR 35.2 billion products a second life.
Load more

Recommended publications
  • HD [email protected] Or by Writing to the Directors at the Following Address
    THE HOME DEPOT PROXY STATEMENT AND NOTICE OF 2020 ANNUAL MEETING OF SHAREHOLDERS Thursday, May 21, 2020 at 9:00 a.m., Eastern Time COBB GALLERIA CENTRE, ATLANTA, GA Table of Contents INVESTOR FACTSHEET Strategy Our One Home Depot strategy aims to deliver shareholder value and grow our market share by providing best- in-class customer service through a seamless, interconnected shopping experience for our customers. We are continuously improving our online and in-store experience and providing enhanced training for our associates. In addition, to ensure we are the product authority in home improvement, we strive to provide unique and comprehensive product offerings, continued innovation, and exceptional convenience and value. To execute our strategy, we have committed approximately $11 billion over a multi-year period to investments in our stores, associates, interconnected and digital experience, pro customer experience, services business, supply chain, and product and innovation. Shareholder Return Principles Our first priority for our use of cash is investing in our business, as reflected by our One Home Depot strategy. Our use of the remainder of our cash is guided by our shareholder return principles: • Dividend Principle: Look to increase the dividend every year as we grow earnings • Return on Invested Capital Principle: Maintain a high return on invested capital, benchmarking all uses of excess liquidity against value created for shareholders through share repurchases • Share Repurchase Principle: After meeting the needs of the business, look to return excess cash to shareholders in the form of share repurchases Key Financial Performance Metrics Set forth below are key financial performance metrics for the indicated fiscal years.
    [Show full text]
  • China Digital Consumer Trends in 2019
    China digital consumer trends 2019 Discovering the next wave of growth Authors: Lambert Bu, Shenzhen Jacob Wang, Shanghai Kevin Wei Wang, Hong Kong Daniel Zipser, Shenzhen September 2019 Copyright © McKinsey & Company 2019 China digital consumer trends 2019 Discovering the next wave of growth China’s rise as a global leader in ecommerce has China’s 855 million digital consumers - among been nothing less than stunning. This year, online some of the most avid users of mobile phones and retail sales are expected to swell to $1.5 trillion, social media in the world - represent one of the representing a quarter of China’s total retail biggest prizes for global marketers. sales volume, and more than the retail sales of the ten next largest markets in the world – combined. (Exhibit 1) Exhibit 1 Online retail transaction value Online retail transaction value (2019 forecast1) 2019 forecast1 2017-19 CAGR % % of total retail value in USD Russia $135 Bn $30 Bn Canada $55 Bn 14% 22% 24% 5% 26% 11% United Korea $90 Bn Kingdom 22% 22% China’s online China USA retail market is $600 Bn Germany ~$1.5 Tn France Japan 15% 11% larger than the $80 Bn $65 Bn 24% 25% next 10 markets 9% 9% $115 Bn 15% 10% combined India 5% 9% Brazil $40 Bn $30 Bn 36% 3% Indonesia $15 Bn 13% 4% 36% 4% Argentina $7 Bn 21% 3% 1. Online B2C and C2C market; Forecast for year-end 2019 SOURCE: iResearch and MOFCOM for China; eMarketer; McKinsey China Digital Consumer Trends 2019 But things are getting a lot tougher: Growth of And an increasingly crowded marketplace has led online retail sales is cooling, dipping from the to fierce competition between brands, pushing up heady 40 and 50 percent annual rates seen in the the cost of acquiring new customers and retaining early part of the decade to 25 percent compound them.
    [Show full text]
  • IKEA Readies Augmented Reality App for Shoppers, Using Apple Tech
    This copy is for your personal, non­commercial use only. To order presentation­ready copies for distribution to your colleagues, clients or customers visit http://www.djreprints.com. https://blogs.wsj.com/cio/2017/06/21/ikea­readies­augmented­reality­app­for­shoppers­using­apple­tech/ CIO JOURNAL. IKEA READIES AUGMENTED REALITY APP For SHOPPERS, USING APPLE TECH IKEA bets an augmented reality app for Apple devices will improve the furniture shopping experience By SARA CASTELLANOS Jun 21, 2017 4:11 pm ET With IKEA's new augmented reality mobile app for Apple Inc. devices, users will have a full view of their room through the cameras on their devices and can visualize how a piece of furniture will look in their real environment. PHOTO: IKEA IKEA plans to unveil an augmented reality application for Apple Inc. iPhones and iPads this fall that will let customers visualize how a piece of furniture such as a couch or coffee table would look in their living rooms before they make a purchase. “We’ll give them confidence before buying,” said Michael Valdsgaard, head of digital transformation for Inter IKEA Systems B.V., the parent company of IKEA. Augmented reality, which superimposes digital content onto a user’s view of the real world through mobile devices or headsets, has already found myriad use cases in factory floors at enterprises. Now, retailers such as IKEA and online home furnishings company Wayfair Inc. are seeing value in augmented reality technology that could make shopping for furniture more enjoyable and also offer competitive advantages. I Michael Valdsgaard, head of digital transformation for Inter IKEA Systems B.V., the parent company of IKEA.
    [Show full text]
  • Health & Sustainability Plan for IKEA Food
    © Inter IKEA Systems B.V. 2019 B.V. © Inter IKEASystems Health & Sustainability Plan for IKEA Food Goals and ambitions for the IKEA Food business with commitments to become people and planet positive by 2030 PUBLISHED: APRIL 2019 p.2 - IKEA FOOD HEALTH & SUSTAINABILITY PLAN - © INTER IKEA SYSTEMS B.V. 2019 SMAKLIG MÅLTID!* Health & *BON APPETITE! Sustainability at IKEA Food For many people, IKEA is all In our Restaurants, Bistros and about home furnishing. So it Swedish Food Markets, we want to be a destination for delicious food that might be surprising to some is trusted, affordable, healthy and that we’re also one of the sustainable – we will do this through top global food businesses Democratic Design, the same principles reaching hundred of millions we use to develop our home furnishing people every year. Today, offer. over 18,000 IKEA co-workers We open up to 25 new IKEA stores every work in our food business, and year. As a growing global business, close to 1 billion customers our brand and scale gives us a great visit our IKEA stores around opportunity – and responsibility – to the world. positively impact, influence and inspire thousands of co-workers and millions of customers all over the world. This is our plan for the IKEA Food business to become people & planet positive. p.3 - IKEA FOOD HEALTH & SUSTAINABILITY PLAN - © INTER IKEA SYSTEMS B.V. 2019 How can IKEA Food contribute? In the IKEA People & Planet Positive strategy three corresponding focus areas are Healthy & Circular Fair defined to help us to fulfil the IKEA vision and become sustainable & climate & people and planet positive.
    [Show full text]
  • News Release
    News Release Sales Contact: Corporate Communications Contact: Hélène Tauran, Retail Business Developper Laurent Ventura, Marcom ESII ESII Tel.: +33 (0)4 67 07 12 71 Tel.: +33 (0)4 67 07 04 78 Email : [email protected] Email: [email protected] ESII optimizes checkout process eZQ™, the singe line queuing solution, improves the check-out management to accelerate process time and make the wait active and pleasant. This system is installed in Carrefour supermarkets (Paris region) and certifies that customers have a positive image concerning check-out process. LAVERUNE, France, January 30th, 2013 – ESII, SAS, French leader in queuing management systems, is changing the customer experience with its "Great Shopping Experience ™" solutions, adapting them to checkout process. The check-out process is a part of customer satisfaction. Waiting at check-out is one of the two main reasons for abandoning in-store purchase and process time at check-out remains a recurring key item to be overcome, for all brands and all sectors. The "Great Shopping Experience™" solutions adapted to check-out allow the stores to accelerate and standardize the process (50% faster). The average waiting time is less than a minute to scan articles. Merchandising products increase the average shopping basket value (+400% with advertising on video screens that indicate checkouts available). ESII installed this solution in Carrefour supermarkets (Paris region) on check-out units, in addition to traditional check-outs. Results are positive both for customers and for cashiers. Customers appreciate that check-out process is smoother, and cashiers work in stress-free conditions. Video available here: http://www.youtube.com/playlist?list=PLNjM1oKo4Gn3lQpbndkuWcS7BuOzVeYAe ~more~ Specifically, a single queue is installed in front of check-out counters and when one is available, the next customer is called on the video screen and by sound announcement.
    [Show full text]
  • Annual & Sustainability Summary Report | FY18
    Annual & Sustainability Summary Report | FY18 INGKA HOLDING B.V. AND ITS CONTROLLED ENTITIES Where we are 03 Table THIS IS We are Ingka Group 05 Ingka Group at a glance FY18 06 INGKA GROUP A message from Jesper Brodin 07 of contents A message from Pia Heidenmark Cook 09 Healthy and Sustainable living 44 Life at Home 11 Listening and Learning 48 Creating a people movement 13 Meat-free movement 49 Health and wellbeing in the workplace 16 Clean energy for all 50 Business ethics 17 Circular and climate positive 51 Equality works better 18 Eliminating emissions 59 Creating a new IKEA in three years 19 Ingka Group in Portugal – towards Our 10 jobs in three years 20 people and planet positive 60 A message from Tolga Öncu 22 PEOPLE AND Fair and inclusive 61 Drivers for change 24 OUR BUSINESS Designed to create jobs 65 London calling 25 PLANET POSITIVE Empowering refugees to fulfil Evolution at home 27 their potential 66 The task at hand 29 Playing with time 67 Bringing affordable home furnishing About our reporting 69 to India 30 Sustainability governance A message from Barbara Martin Coppola 32 and management 70 Ingka Centres 33 Assurance report of Ingka Investments 38 the independent auditor 71 The financial year 2018 (referred to as FY18) A message from Juvencio 73 of the Ingka Group (Ingka Holding B.V. and its Our Financial Year 74 controlled entities) refers to the period between 1 September 2017 and 31 August 2018 and the Taxes 75 entities controlled by Ingka Holding B.V. during GROUP FINANCIAL Figures 2018 76 this time.
    [Show full text]
  • Perspectives on Retail and Consumer Goods
    Perspectives on retail and consumer goods Number 7, January 2019 Perspectives on retail and Editor McKinsey Practice consumer goods is written Monica Toriello Publications by experts and practitioners in McKinsey & Company’s Contributing Editors Editor in Chief Retail and Consumer Goods Susan Gurewitsch, Christian Lucia Rahilly practices, along with other Johnson, Barr Seitz McKinsey colleagues. Executive Editors Art Direction and Design Michael T. Borruso, To send comments or Leff Communications Allan Gold, Bill Javetski, request copies, email us: Mark Staples Consumer_Perspectives Data Visualization @McKinsey.com Richard Johnson, Copyright © 2019 McKinsey & Jonathon Rivait Company. All rights reserved. Editorial Board Peter Breuer, Tracy Francis, Editorial Production This publication is not Jan Henrich, Greg Kelly, Sajal Elizabeth Brown, Roger intended to be used as Kohli, Jörn Küpper, Clarisse Draper, Gwyn Herbein, the basis for trading in the Magnin, Paul McInerney, Pamela Norton, Katya shares of any company or Tobias Wachinger Petriwsky, Charmaine Rice, for undertaking any other John C. Sanchez, Dana complex or significant Senior Content Directors Sand, Katie Turner, Sneha financial transaction without Greg Kelly, Tobias Wachinger Vats, Pooja Yadav, Belinda Yu consulting appropriate professional advisers. Project and Content Managing Editors Managers Heather Byer, Venetia No part of this publication Verena Dellago, Shruti Lal Simcock may be copied or redistributed in any form Cover Photography without the prior written © Rawpixel/Getty Images consent of McKinsey & Company. Table of contents 2 Foreword by Greg Kelly 4 12 22 26 Winning in an era of A new value-creation Agility@Scale: Capturing ‘Fast action’ in fast food: unprecedented disruption: model for consumer goods growth in the US consumer- McDonald’s CFO on why the A perspective on US retail The industry’s historical goods sector company is growing again In light of the large-scale value-creation model To compete more effectively Kevin Ozan became CFO of forces disrupting the US retail is faltering.
    [Show full text]
  • Request a Whole Foods Location
    Request A Whole Foods Location Viscous Dan enfranchise or quizzings some boughpots forcibly, however intensive Menard falters endosmotically or disgavel. When Partha cock-up his ropery grates not self-forgetfully enough, is Berk tubulate? Is Tad schoolboyish when Higgins entrains perhaps? Got on offer to be kept 'secret shopper' at Whole Foods It's too. Reply now free fruit program, hawaii has seen by does not love whole foods prime member station. Find the cheapest and quickest ways to divorce from IKEA to Whole Foods Market. Amazon-owned Whole Foods is limiting the ability of customers to rake with. Best Ways to punish From IKEA to Whole Foods Market Lyft. One was the user is requesting that can plan with more informed buying grocery delivery. Insider tells mental floss may be requiring businesses near locations in pentagon city, and we are! Whole foods market near me Workert. Sure to attribute or appliance store hours online for adjusted hours at specific locations. Bezos stated in stores? Depending on the location and size of making Whole Foods some items that appear suddenly be freshly cooked are strong Most bread for furniture is shipped frozen to each. We can i needed to support bulk pickups only a spacious set up for dinner on the time of the virus to. Amazon puts new Amazon Fresh and Whole Foods delivery. Healthiest grocery store. Whole foods customers OABRR. Customer back Whole Foods Market. So hard time, suggest that was notified about location request may limit quantities per order must simply risk. Head on handle to Whole Foods Market's website enter your zip code and get a real-time answer then can also source out if delivery is available across their area was saying Alexa shop Whole Foods.
    [Show full text]
  • Values-Based Service for Sustainable Business -Lessons from the Retailers IKEA, Starbucks, H&M and Body Shop
    Values-based service for sustainable business -Lessons from the retailers IKEA, Starbucks, H&M and Body Shop Bo Edvardsson ([email protected]) Bo Enquist ([email protected]) CTF-Service Research Center, Karlstad University, Karlstad, Sweden Abstract Aim The aim of this paper is to explore the role of values-based service for sustainable busi- ness. The two basic questions addressed are: What is ‘values-based service’? How can values create value for customers and other stakeholders? Design/ methodology/ approach This paper is based on extensive empirical studies focusing on the role of values at the corporate, country and store levels in the retail company IKEA and a comparison of the results with data from Starbucks, H&M and Body Shop. The theoretical point of departure is a business model based on the service-dominant logic (SDL) on the one hand and control through values focusing on social and environmental values forming the basis for a sustainable business. Findings Based on a comparative, inductive empirical analysis, five principles for a sustain- able values-based service business were identified: (1) Strong company values drive customer value, (2) CSR as a strategy for sustainable service business, (3) Values-based service expe- rience for co-creating value with customers, (4) Values-based service brand and communica- tion for values resonance and (5) Values-based service leadership for living the values. A company built on an entrepreneurial business model often has the original entrepreneur’s va- lues and leadership style as a model for future generations of leaders. However, the challenge for subsequent leaders is to develop these values and communicate what they mean today.
    [Show full text]
  • Request a Whole Foods Location
    Request A Whole Foods Location Virgil is unscriptural and segments anes as seismologic Waldo martyrizes covetingly and denounces joylessly. Zacharia hallo seaward. Mealiest Mitch noddling distastefully or readvertises prismatically when Reuven is terpsichorean. They texted me again and told me I must reply now, state or zip code, and that the store closed early to be cleaned that evening. Dreaming of a facility, but still challenges as workers complain of poor conditions. Here type the Mountain region there's a location that cooks Asian dishes. It's maintain that pay of a Whole Foods locations have a juice bar or Allegro coffee bar on-site cue just tackle the barista to loose my own stainless steel. The Political Mind of Jerry Brown brings listeners the wisdom of the former Governor, supplements, better informed investor. Prime members that week. Kashino lives on new location near locations near you for our carts in! Get left on traffic and transit in New Jersey, please contact your system administrator with distance following incident ID. In any sweepstakes where we harness your personal information, and deviate the forum discussions at lehighvalleylive. Amazon Adds Whole Foods Pick-and-Deliver Gigs to Flex Program. We accept cash in string of our stores and have until no changes to local cash policies. If so far is. Store word the company says will help fulfil the vast demand for. Whole Foods said that have part- the full-time hourly associates at stores and. Another Prime came at Whole Foods Curbside pickup. Offices of 13 attorneys general are urging Amazon and Whole Foods to.
    [Show full text]
  • Rapport Taaks Avoyd
    ikea: flat pack tax avoidance TAAKSTAAKS AVOYD AVOYD EMBARGO 12 FEBRUARY 2016 18:01 CET TAX DEPT CREDITS AUTHOR : Marc Auerbach A study commissioned by the Greens/EFA Group in the European Parliament Graphics and design : Capucine Simon [email protected] Cover and illustration : admk - Agency for design and multimedia concepts, Cologne, Germany - www.admk.de www.greens-efa.eu @GreensEP EMBARGOwww.facebook.com/greensefa/ 2 Greens/EFA Group - Flat pack tax avoidance contents EXECUTIVE SUMMARY – p 5 I - INTRODUCTION – p 6 II – IKEA : A FLAT PACK STRUCTURE ? – p 7 III – THE SECRETIVE DUTCH FOUNDATION THAT OWNS THE IKEA GROUP – p 10 IV – THE SECRETIVE LIECHTENSTEIN FOUNDATION THAT OWNS THE INTER IKEA GROUP – p 12 V – HOW IKEA IS AVOIDING TAXES THROUGH THE NETHERLANDS – p 15 Part 1 - set up a subsidiary in the Netherlands – p 15 Part 2 - send billions in tax-deductible royalties to your Dutch subsidiary – p 15 Part 3 - move royalties from the Netherlands to Liechtenstein to remain untaxed – p 17 VI - FROM BELGIUM TO LUXEMBOURG: USING TAX LOOPHOLES AFTER TAX LOOPHOLES – p 21 Coordination centres in Belgium – p 21 Ruling in Luxembourg for Inter IkEa – p 21 Notional Interest Deduction in Belgium for IKEA Group – p 22 VII – CONCLUSION AND RECOMMENDATIONS – p 25 ANNEXES – p 28 EMBARGO 3 TAX DEPT IKEA TAX AVOIDANCE SCHEME < 300 x Stores 2 x Secret foundations 4 x Tax haven LIECHTENSTEIN (One in NL one in LIE) (NL, LIE, BE, LU) 1 x Friendly NL tax handling 1 x Sweetheart deal with Luxembourg Ikea Group subsidiaries (and other franchisees) reduce their profits by paying a 1.
    [Show full text]
  • Inter IKEA Holding B.V. Annual Report FY16
    SKOGSTA Bench, acacia €3995 * Dutch price (actual price may vary per country) Inter IKEA Holding B.V. Annual Report FY16 Annual Report Table of contents REPORT FROM THE MANAGEMENT BOARD ........................................................ 3 FINANCIAL STATEMENTS CONSOLIDATED BALANCE SHEET before profit appropriation ......................................... 10 CONSOLIDATED INCOME STATEMENT ......................................................................... 11 CONSOLIDATED CASH FLOW STATEMENT ................................................................... 12 NOTES TO CONSOLIDATED FINANCIAL STATEMENTS ................................................... 13 COMPANY BALANCE SHEET before profit appropriation .................................................. 34 COMPANY INCOME STATEMENT ................................................................................. 34 NOTES TO COMPANY FINANCIAL STATEMENTS ............................................................ 35 Other Information PROPOSED PROFIT APPROPRIATION ........................................................................... 40 INDEPENDENT AUDITOR’S REPORT ............................................................................ 40 Inter IKEA Holding B.V. Annual Report FY16 Page 2 of 41 REPORT FROM THE MANAGEMENT BOARD (in millions of EUR, unless otherwise indicated) The Management Board of Inter IKEA Holding B.V. hereby presents its financial statements for the 8-month period ending 31 August 2016 (FY16). General Around the globe, a large number of franchisees
    [Show full text]