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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. PERFORMANCE AND Ingka Group ownership structure and governance 78 Ingka Group franchises the IKEA Retail system GOVERNANCE Supervisory Board 79 and methods from Inter IKEA Systems B.V. in the Netherlands. Inter IKEA Systems B.V. is the INDICES 80 owner of the IKEA Concept and the worldwide IKEA franchisor. This is Ingka Group Russia 14 Stores 14 Shopping Centres North America Europe 1 Store Distribution site 62 Stores 244 Stores 1 Customer Distribution site 5 Pick-up and Order Points 13 Pick-up and Order Points 8 Store Distribution sites 28 Shopping Centres 11 Customer Distribution sites 16 Store Distribution sites 22 Customer Distribution sites Asia Ingka Group is: 37 Stores 2 Pick-up and Order Points • Part of the IKEA legacy. 3 Shopping Centres • Responsible for representing the 5 Store Distribution sites IKEA brand in 30 markets. 1 Customer Distribution site • A strategic business partner in the IKEA franchise system, representing 90% of total IKEA 367 Australia retail sales in FY18. IKEA stores in 10 Stores • The main partner in logistics 1 Store Distribution site and service operations and in 2 Customer Distribution site providing digital developments 30 countries and solutions to Inter IKEA Group. In FY18 we had ecommerce • The main development and in 29 of 30 markets and innovation partner to Inter IKEA ecommerce sales grew by 45% Systems B.V., the owner of the IKEA Concept and worldwide IKEA franchisor. 3 | Ingka Group Annual & Sustainability Summary Report FY18 This is Ingka Group | Introduction THIS IS INGKA GROUP THIS IS INGKA GROUP | OUR BUSINESS | PEOPLE AND PLANET POSITIVE | GROUP FINANCIAL PERFORMANCE AND GOVERNANCE | INDICES 4 | Ingka Group Annual & Sustainability Summary Report FY18 This is Ingka Group | Introduction Who we are e are Ingka Group and We operate 367 thriving IKEA stores we’re driven both by the that welcome over 830 million visits vision to create a better per year and receive 2.35 billion visits everyday life for the to IKEA.com. Together they generated Wmany people, and by our strong values, EUR 34.8 billion in total retail sales in which include togetherness, simplicity, FY18. Ingka Centres owns and manages leading by example and giving and over 40 vibrant shopping centres across taking responsibility. This unique Europe, Russia and China, always foundation was laid many years ago, anchored by an IKEA store. Ingka when Ingvar Kamprad founded Ingka Investments helps to develop what we to bring IKEA into people’s lives – and do today, and contributes to our financial it’s what continues to unite our 158,400 freedom with a long-term perspective, colleagues and how we work today. by purposefully investing in our IKEA Retail business and helping us to become We’ve come a long way, and during people and planet positive – again, in line our journey we have brought the IKEA with our key values. Brand to 30 countries and into millions of homes. We play a key role in the We’re curious about the world strategic development of IKEA in areas around us and want to make a positive such as logistics and digital, and our difference in people’s lives. Together with co-workers generate around 90% our customers, partners and others in of the total IKEA sales. We operate society, we’ll lead home furnishing into that business in our retail markets the future, creating a better everyday life as a franchisee of the IKEA franchise for more of the many people by putting system, which has existed since the our customer’s needs at the heart of all 1980s to support a strong and vital that we do. And as we embark on one IKEA Concept. Our core business of the biggest transformations in IKEA is IKEA, but we also operate two history, our belief that a better everyday important businesses that complement life starts at home continues to drive us, what we do: Ingka Centres and Ingka and has never been more important in Investments. people’s lives. 5 | Ingka Group Annual & Sustainability Summary Report FY18 49.4% Ingka Group 2.35 billion Female visits to IKEA.com managers At a glance FY18 Today, more than half 182 million of our co-workers visits to the are women, as are catalogue and 158,400 co-workers 49% of our managers and 44%* of Group store apps Management. IKEA Retail 152,100 Ingka Centres 2,250 Ingka Holding B.V. and its controlled entities Other 4,050 *This number has changed for FY18 due to a new management structure. EUR 367 IKEA stores in 30 countries 34.8 441 billion total retail sales 124 million IKEA Family At the end of FY18 we also had: (EUR 34.1 billion in FY17) members 45 Shopping Centres in 14 countries We own and operate 441 wind turbines in Belgium, 20 Pick-up and Order Points in 11 countries Canada, Denmark, Finland, France, Germany, Ireland, 31 Store Distribution sites in 18 countries Total retail sales translated into Euro increased by Lithuania, Poland, Portugal, Sweden, the UK and the Our most loyal customers are members of IKEA 37 Customer Distribution sites in 16 countries 1.9%. Adjusted for currency impact, total retail sales USA. We also have 900,000 solar panels on the roofs of Family. And more than 38,000 new members 29 out of 30 markets offering ecommerce increased by 4.7%. Total revenue EUR 37.1 billion. our stores and warehouses. join every day! We have EUR partnerships with 58 social 30% entrepreneurs corporate income tax and social businesses in 14 countries Refugees in 11 countries are 1.5billion net profit Corporate income tax amounted to EUR 0.6 billion receiving support to develop globally, which equals an effective corporate tax rate of (EUR 2.5 billion in FY17) 30% (24,9% in FY17). Our total tax bill, including other new skills for employment taxes and duties, amounted to approx. EUR 1.1 billion. We own approx. 180,000 Over hectares of responsibly 437,50 0 kg 230% managed forests 838 million growth in Home Solar The forests we own are in Estonia, Latvia, Lithuania, IKEA store visits of food was The number of Home Solar customers grew by 230%, Romania and the USA. and each customer saved or will save on average EUR saved 400 per year on their energy bill. 475 million Shopping Our food waste initiative saved Centre visits nearly 865,000 meals from going to waste in our kitchens This is Ingka Group | A message from Jesper Brodin A MESSAGE FROM JESPER BRODIN We’re excited about creating our future 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! t’s been a year of successes same day, or next. And few can offer a and challenges. Now it’s time well-designed range of such value for to build on 75 years in the money. business of home furnishing and Iour deep knowledge of life at home, Our vision remains, always, to retail and logistics, to welcome the create a better everyday life for future’s challenges and opportunities. the many people. So, after many This pairs with doing our part to good years in kitchens and bedrooms, address climate change and become we’ve boosted our offer in living rooms people and planet positive. We’ve with more comfortable, lower priced supported people to realise their sofas and fresh solutions for organising dreams and needs at home, but in and storage. In all our markets – reality, we’ve only just begun our including India, where we embarked journey. on a new adventure by opening a store in Hyderabad – our IKEA stores are We live in fast-changing times. reflecting this new, modern approach. We know the world’s population is growing and more people will move to Climate change is no longer a big cities.
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