IKEA INSIGHT DECK Growth markets and strategic initiatives April 2013 1 A Service MATTHEW STYCH Research Director Contents 1. Introduction 2. Major Strategic Initiatives 3. Key Markets 4. Conclusions & Implications 5. Further Reading 2 All data correct at time of publishing. 1. Introduction 1. Introduction Corporate Structure: Inter IKEA Group - the franchisor The IKEA brand and retail concept is owned by Inter IKEA Holding, which is ultimately owned by Interogo Foundation - controlled by IKEA founder Ingvar Kamprad and his family. Interogo Foundation (Liechtenstein) Inter IKEA Holding Service SA (Belgium) Franchise Division Inter IKEA Systems BV (The Netherlands) Inter IKEA Holding SA (Luxembourg) Retail Centre Division Inter IKEA Centre Group A/S* (Denmark) Property Division Vastint Holding BV (The Netherlands) Finance Division Includes Inter IKEA Investment AB (Sweden) The franchise division derives revenue by charging IKEA stores a franchise fee, calculated as 3% of revenue. The division also owns the Delft Netherlands store, which is frequently used as the live testing ground for new products and initiatives. 4 Operates shopping centres, with IKEA as anchor tenant, in China, Czech Republic, France, Germany, Italy, Poland, Portugal, Slovakia, Spain and Switzerland. Holding company for a variety of property related investments, such as the Strand East residential district development in London, and the forthcoming ventures into budget hotel operation and student accommodation development across Europe. © IKEA © IKEA © Moxy Inter IKEA Investments AB The finance division administers holdings in a variety of financial investments. The division also includes Inter IKEA Investments AB, which invests in unlisted Swedish businesses. 1. Introduction Corporate Structure: INGKA Group - the franchisee The IKEA brand owner (Inter IKEA Holding) and the owner of the majority of IKEA stores around the world (INGKA Holding) are separate entities with different shareholders and supervisory board members. IKEA Founder Ingvar Kamprad does, however, retain an influence over the INGKA Group, through his role as Senior Advisor to the board. Stichting INGKA Foundation (Netherlands) INGKA Holding BV (Netherlands) Industrial Groups (Swedwood International AB, Sweden; Swedspan International sro, Slovakia) Retail (Country operations) Range Strategy, Design, Supply Chain (IKEA of Sweden AB, Sweden) INGKA Group owns the IKEA stores in most of the major retail markets in which it is present. 5 Mikael Ohlsson (President and CEO) Petra Hesser (HR) Helen Duphorn (Corporate Communications) Torbjörn Lööf (IKEA of Sweden) Noel Wijsmans (Vice President/Retail) Jesper Brodin (Supply Chain) Leif Hultman (Industry) Steve Howard (Sustainability) Alistair Davidson (Head of Staff) Peter Agnefjäll (pictured), Deputy CEO. Peter Agnefjäll (pictured) will assume the CEO position on 1 Sept 2013. © IKEA IKEA Group Executive Management consists of: