Financial Summary

Inter IKEA Group
Financial Summary
FY21

2 | Inter IKEA Group Financial Summary FY21
This document summarises Inter IKEA Group’s fnancial performance
for fnancial year 2021 (FY21). FY21 is the period from 1 September
2020 to 31 August 2021. Since Inter IKEA Group’s fnancial performance
is very closely connected to the retail sales performance of our
franchisees, we begin the fnancial summary there.
In FY21, the continuing effects of the global pandemic forced a large
number of IKEA stores to shut. Some were closed for even longer
periods in FY21 compared to FY20. When most stores re-opened in
late spring, customers returned and in FY21 IKEA stores welcomed
775 million visitors. This is below FY20 (825 million visits), causing
a store sales decline of 8%.
Despite lower store sales, total retail sales for FY21 were 5.8% higher
compared to FY20, driven by online sales and increased interest in
home furnishing. Online sales increased with 73%, and there was high
demand for ofce furniture and other multifunctional solutions for the
home.
FY21 resulted in total IKEA retail sales of EUR 41.9 billion (including
sales of IKEA products, food and services by IKEA franchisees)
compared to EUR 39.6 billion in FY20.
Keeping IKEA stores and warehouses stocked has been a challenge.
Supply chain disruptions led to a substantial drop in the availability of
products that we have yet to recover from. We expect this will continue
far into FY22. Across the IKEA value chain, great efforts will continue to
be made to keep our most popular products in stock.
Another challenge in FY21 was the steep global rise in transport and
raw material prices. This created additional costs for the whole IKEA
value chain.
Inter IKEA Group recorded total revenues of EUR 25.6 billion, including
wholesale sales to IKEA retailers, franchise fees and retail sales from
the IKEA Delft store, and a net proft of EUR 1.4 billion for FY21.
Introduction
Mexico
Slovenia
Services to
customers
Products sold
online
Products sold
through stores
3%
26%
71%
IKEA retail sales in billion EUR IKEA retail sales development
FY21 IKEA retail sales
775 million store visits
and two new markets entered
5
billion website
visits
FY20 FY21
FY19
€41.3
FY20
€39.6
FY21
€41.9
3 | Inter IKEA Group Financial Summary FY21
The IKEA
franchise system
Retail development
Inter IKEA Group works closely with IKEA
franchisees to bring the IKEA retail experience
closer to people – wherever they work, live or
socialise. This means new locations in large
cities or metropolitan areas, complemented by
an omnichannel offering that meets customer
needs and provides a seamless and unique
customer experience.
IKEA franchisees continue to test new ways of
meeting customers in inner cities with smaller
compact stores. Inter IKEA Systems B.V., the
owner of the IKEA Concept and worldwide
IKEA franchisor, has added IKEA plan and order
points to its menu of conceptualised customer
meeting points. This means testing is complete
and IKEA retailers can implement IKEA plan
and order points in their markets. In FY21,
franchisees opened six such locations with
plans to launch many more globally. In total,
around 45 new IKEA locations opened in FY21.
FY21 also saw the last worldwide publication of
the iconic IKEA catalogue after 70 years. Moving
beyond the catalogue allows us to focus our
time and resources on a better omnichannel
experience for IKEA customers.
IKEA is a franchise business. That means
many people and many companies with
different owners work under one IKEA brand
– all dedicated to creating a better everyday
life for the many people.
The diagram on the next page shows a
simplifed overview of the IKEA franchise
system. Inter IKEA Systems B.V., IKEA
of Sweden AB, IKEA Marketing &
Communication AB, IKEA Supply AG and IKEA
Industry AB are part of Inter IKEA Group.
Franchising is a system that encourages
everyone to contribute and collaborate.
The franchisor has the responsibility to
continuously develop the IKEA Concept
and ensure its implementation in new
and existing markets. Franchisees provide
valuable input based on consumer and
market insights.
The IKEA franchise system enables
continuous growth and is built on a model
that focuses on lowering costs, creating
lower prices and allowing for higher volumes.
With the global rise in raw material prices
and other costs related to sourcing and
supplying products, securing low prices
is a big challenge, but we continue to do
our utmost to deliver on our affordability
ambitions.
225,000
FY21 IKEA co-workers
around the world
217,000
FY20 IKEA co-workers
around the world
More IKEA facts & fgures for FY21 can be found on
about.ikea.com

4 | Inter IKEA Group Financial Summary FY21
Expansion
Between FY19 and the end of FY23, IKEA is
expanding into 17 new markets and opening
an average of 50 new locations per year
(including test locations). All, so customers can
touch and try IKEA products before they buy. At
the end of FY21 IKEA franchisees operated 458
traditional IKEA stores in 61 markets as well
as several test locations.
Although expansion plans and openings in
new markets were influenced by the pandemic,
IKEA franchisees have continued to meet new
customers in adapted and safe ways. In FY21
they opened a mix of traditional IKEA stores,
new smaller formats, e-commerce and test
locations.
In FY21 IKEA entered two new markets: Mexico
and Slovenia. The biggest milestone next year
will be the opening of IKEA Chile in Santiago,
which will bring IKEA to the many people in
South America.
In FY22 IKEA franchisees will enter three more
new markets: Puerto Rico, Philippines and
Oman.
Al-Homaizi
3 markets
House Market
3 markets
Sarton
3 markets
Miklatorg
4 markets

MAPA
1 market
Falabella
Northern Birch
1 market

Al-Futtaim
4 markets
Dairy Farm
4 markets
IKANO Group
4 markets
Al-Sulaiman
2 markets
Inter IKEA IKEA franchisees
Group
IKEA
service
providers
IKEA
product
suppliers
Inter IKEA Systems
owner of the IKEA Concept
and worldwide franchisor
IKEA of Sweden
develops and designs the
overall IKEA product range
IKEA Marketing &
Communication
develops and designs
communication content
IKEA Supply
sources and distributes
the IKEA product range
IKEA Industry
a strategic IKEA manufacturer
Ingka Group
32 markets
IKEA franchise system and value chain
This diagram shows a simplifed overview of key organisations in the IKEA franchise
system and value chain (excluding subsidiaries) The IKEA retail business operates in
61 markets through a franchise system. This infographic shows a simplifed overview.
Market information is accurate as of 31 August 2021. For more detailed information,
please visit
inter.ikea.com or about.ikea.com
5 | Inter IKEA Group Financial Summary FY21
Inter IKEA Holding B.V. is the holding
company of the Inter IKEA Group.
Inter IKEA Group has three core businesses:
Franchise, Range and Supply. The core
businesses work together with franchisees
and suppliers to co-create the IKEA offer
and franchise system. Inter IKEA Group
aims to provide the best possible conditions
for implementing and operating the IKEA
Concept, and to create a strong platform
for growth.
Franchise
Franchise consists of Inter IKEA Systems B.V.
and its subsidiaries, including IKEA Marketing
& Communication AB. Inter IKEA Systems
B.V. is the worldwide IKEA franchisor and the
owner of the IKEA Concept (which includes
the IKEA Brand). Inter IKEA Systems B.V.
continuously develops the IKEA Concept and
ensures its successful implementation in
new and existing markets. This enables IKEA
to remain forward-looking in areas such as
brand development, sustainability, people
and environment, market potential and
expansion. IKEA Marketing & Communication
AB develops and creates IKEA communication
content.
Range
Range includes IKEA of Sweden AB and
related businesses. It is responsible for
designing and developing the overall IKEA
product range, including home furnishings,
food and packaging solutions, under
assignment of Inter IKEA Systems B.V.
Supply
Supply includes IKEA Supply AG, IKEA
Industry AB, IKEA Components AB and
related businesses. Inter IKEA Systems
B.V. assigns IKEA Supply AG to source and
distribute IKEA products to IKEA franchisees.
Most IKEA products (89%) are sourced from
external suppliers across the globe. IKEA
Supply AG manages and operates the IKEA
supply chain together with its wholesale
subsidiaries and external business partners,
such as transport service providers,
warehouse providers and customs brokers.

Inter IKEA
Holding B.V.
Inter IKEA
Systems B.V.
IKEA of
Sweden AB
IKEA
Supply AG
IKEA
Industry AB
Franchise Range Supply

Inter IKEA Group
Overview of Inter IKEA Group
6 | Inter IKEA Group Financial Summary FY21
Ownership
Inter IKEA Group is ultimately owned by
Interogo Foundation, based in Liechtenstein.
Interogo Holding AG is a co-shareholder,
contributing capital and loans to Inter IKEA
Group. Interogo Foundation is the sole
controlling shareholder in Inter IKEA
Holding B.V.
IKEA Industry AB is a strategic IKEA
manufacturer owned by Inter IKEA Group
that produces IKEA home furnishing products
and develops unique IKEA manufacturing
capabilities in relevant parts of the supply
chain. IKEA Industry produces approximately
11% of the IKEA product range, with a main
focus on wood-based furniture.
IKEA Components AB develops, sources,
packs and supplies components, such as
screws and wooden dowels that are used to
assemble IKEA furniture.
Other functions
To support the core businesses, Inter IKEA
Group includes group functions for People &
Culture, Communication, Risk, Finance, Legal
and other activities.
IKEA Älmhult AB, which owns and operates
the IKEA Hotell and IKEA Museum, is also part
of Inter IKEA Group.
Manufacturing
and distribution
Inter IKEA Group is constantly looking for new
ways to make production more sustainable and
energy-efcient. Almost two-thirds of the IKEA
climate footprint is directly connected to the
supply chain, including production at suppliers.
In FY21, a new programme was launched to
accelerate the transition of 1,600 suppliers to
100% renewable energy. The programme will
frst roll out in three of our largest purchasing
countries: Poland, China and India. Achieving
100% renewable electricity with IKEA suppliers
in these countries will save 670,000 tonnes
of CO
2 emissions per year, equivalent to
approximately 3% of the total climate footprint
of the IKEA value chain.
IKEA Industry signed an agreement with Meva
Energy for green electricity production. The
technology by Meva Energy generates both
electricity and heating from wood waste
currently not possible to recycle and is today
either landflled or incinerated resulting in
air pollution. Compared to conventional
technology, it not only has an increased
electricity output, but also minimises any air
pollution – contributing to clean air.
21,298 2,898
1,517
187
FY21 full-time equivalent co-workers
per core business
Supply Range Franchise Other functions
7 | Inter IKEA Group Financial Summary FY21
Inter IKEA Group
FY21 fnancial results
The global pandemic affected our operating income in FY21. The
biggest cause was the steep increase in transport and raw material
prices in the second half of the fnancial year. The full impact of this
can be seen in the increased
costs of goods sold which reflects the
cost of sourcing, handling and distribution of IKEA products.
After fnancial income and expense, and income taxes, net income
of EUR 1,433 million was substantially lower compared to FY20. The
Inter IKEA Group consolidated income statement shows a simplifed
overview of this year’s fnancial performance.
Sales of goods
Sales of goods refers to wholesale sales of IKEA products to IKEA
franchisees. Inter IKEA Group also owns and operates one IKEA store
in Delft, the Netherlands. IKEA Delft’s retail sales are also included in
this line item.
As IKEA franchisees’ retail sales increased in FY21, Inter IKEA Group
wholesale sales went up as well. However, the global transport crisis
challenged us to keep IKEA stores well-supplied throughout
the year.
Consolidated income statement
In millions of EUR FY21 FY20
Sales of goods 24,282 22,387
Franchise fees 1,273 1,162
Other income 60 64
Total revenues 25,615 23,613
Costs of goods sold 21,137 18,860
Gross proft 4,478 4,753
Operational cost 2,622 2,529
Total operating income 1,856 2,224
Financial income and expense -151 -201
Result before tax

1,705 2,023
-272 -295

Income taxes Results from the sale of entities – 3
Net income 1,433 1,731
8 | Inter IKEA Group Financial Summary FY21
Inter IKEA Group manufactures about 11%
of the IKEA product range and sources
the remaining 89% from nearly 1,000
external suppliers. This includes both home
furnishing and food products.
Raw material prices increased dramatically
in the second half of FY21 following an
unfavourable combination of scarcity
and high demand. This resulted in higher
purchasing costs in FY21.
In addition, transport costs went up due
to the limited availability of containers
and carriers as a result of the pandemic.
To support low prices to customers in
accordance with our affordability ambition,
Inter IKEA Group did not increase wholesale
prices to the IKEA franchisees, which led to a
lower gross margin.
Franchise fees
In a franchise setup, one company pays
another
franchise fees for the right to use
its intellectual property. The IKEA franchise
offer includes the IKEA trademarks and IKEA
Concept.
IKEA franchisees pay Inter IKEA Group an
annual fee of 3% over their net sales. In
return, they are authorised to market and
sell the IKEA product range and operate
IKEA stores and other sales channels.
As retail sales increased in FY21, franchise
fee income rose accordingly.
Other income
Other income mainly consists of income from
selling the IKEA catalogue (fnal edition) and
other marketing materials created for IKEA
franchisees.
Cost of goods sold
Cost of goods sold describes the total
accumulated costs to manufacture and
distribute products. The cost of goods
sold relates to both wholesale and Delft
store sales.
Range development
The healthy IKEA Food range was expanded in
FY21 with the addition of
LÄTTLAGAT. Aimed at
people who are in a rush or with little time to
cook, it offers tasty, well-made food, carefully
composed in both flavour and nutritional
content. The ready-prepared meals give a
taste of homemade cooking that is served in
minutes. Choose between various plant-based
and meat-based balls that can be enjoyed at
home or at work.
LOKALT is a vibrant collection of handmade
textiles and ceramics where local traditions
meet traditional handicraft. It is the result
of a collaboration with contemporary local
designers and social entrepreneurs in Jordan,
Thailand and India. Every cushion cover, rug,
basket and bowl creates equality, inclusion
and livelihoods in regions where it is most
needed. LOKALT is a collection from IKEA
Social Entrepreneurship, which aims to create
long-term job opportunities and livelihoods for
vulnerable groups in a business partnership.
We identifed the millions of enthusiastic
gamers across the world as a truly crossdemographic group who have long been
overlooked from a life-at-home perspective.
So to design the new
IKEA gaming range
we teamed up with Republic of Gamers to
create the perfect gaming setup solutions and
comfortable ergonomic furniture, including all
the accessories, for a high-performance gaming
experience at affordable prices.
13.0%
gross proft %
in FY21
15.8%
gross proft %
in FY20

9 | Inter IKEA Group Financial Summary FY21
Operational cost
Operational cost includes co-worker costs, utilities, rent and other
costs related to day-to-day operations. This total went up slightly in
FY21 to EUR 2,622 million.
Costs rose for recruiting additional staff to handle a complex
transport and shipping environment in efforts to secure the
availability of products in IKEA markets. Further additional costs
came from building up and securing capabilities to address the
necessary strategic and transformational changes to improve the
whole IKEA value chain.
Investments were also made to improve the online IKEA sales
experience and the performance of our retail platforms. The
increases are partly offset by improved efciency of our operations
and lower travel costs due to global travel restrictions.
Financial income and expense
Financial income and expense are revenue and costs regarding loans,
investments and positions in foreign currencies. Favourable currency
developments partly offset the interest expenses.
Taxation
In FY21 the Inter IKEA Group tax charge was EUR 272 million – equal
to 16.0% of pre-tax income, compared to 14.6% in FY20. This resulted
from lower supply chain proftability due to increased raw material
prices and transport costs.
Inter IKEA Group’s total tax contribution amounted to EUR 1,916
million and mainly consisted of corporate income tax, custom duties,
VAT and payroll taxes.
VAT 695
Payroll 422
Customs 377
Corporate
income tax
398
FY21 total tax contribution by type of tax in million EUR
Other 24
Taxes incurred Taxes collected
FY21 operational cost per category
Staff and
travel costs
Bought services Depreciation/
amortisation
Other operating
expenses
9%
45%
26%
20%

10 | Inter IKEA Group Financial Summary FY21
Inter IKEA Group
balance sheet
The Inter IKEA Group balance sheet positions have not changed
signifcantly compared to 31 August 2020. Receivables went up,
liabilities went down, and the equity ratio increased from 45%
to 47%, demonstrating fnancial strength.
The consolidated balance sheet shows an overview of Inter IKEA
Group’s assets, equity and what is due to suppliers, partners and
other organisations.
Intangible fxed assets
In general terms, fxed assets are business property intended for
long-term use.
Intangible fxed assets are assets that lack physical
form like patents, trademarks, copyrights, and other intellectual
property. Intangible fxed assets form much of Inter IKEA Group’s
overall assets.
Most Inter IKEA Group intangible fxed assets are trademark rights
and other intellectual property rights. Inter IKEA Group purchased
these rights for EUR 11.8 billion in 2012. As a positive return is
expected for a long period, these costs are spread over a period of
45 years.
Consolidated balance sheet
In millions of EUR 31 Aug 2021 31 Aug 2020
Intangible fxed assets 9,711 10,004
Tangible fxed assets 1,702 1,691
Financial fxed assets 251 250
Total fxed assets 11,664 11,945
Inventories 3,752 3,661
Receivables 5,831 5,276
Cash and cash equivalents 160 225
Total current assets 9,743 9,162
Total assets 21,407 21,107
Group equity 10,115 9,541
Provisions 255 322
Non-current liabilities 5,429 5,979
Current liabilities 5,608 5,265
Total liabilities 11,292 11,566
Equity and liabilities 21,407 21,107
11 | Inter IKEA Group Financial Summary FY21
Of the EUR 1,433 million proft achieved during FY21, EUR 1,000
million will be distributed as a dividend to Interogo Holding AG, a
holding company that is fully owned by the Interogo Foundation.
The remaining EUR 433 million will be added to the Inter IKEA
Group equity.
Provisions are money set aside for pension commitments, deferred
taxes and claims.
Liabilities are money owed to others. Most Inter
IKEA Group non-current liabilities, which are due over a long period
of time, consist of a loan from Interogo Holding AG (a non-controlling
shareholder). Current liabilities are short-term loans, money due to
suppliers and the current portion of long-term loans from Interogo
Holding AG.
Tangible fxed assets
Tangible fxed assets are things like real estate and equipment
that you can physically touch and feel. Inter IKEA Group tangible
fxed assets are mainly factories and distribution centres. A new
distribution centre in Malaysia went operational in FY21.
Inter IKEA Group owns several ofces and distribution centres, the
IKEA Delft store, the IKEA Hotell and IKEA Museum, and around 42
factories. Most of the factories are in Europe. The majority produce
IKEA furniture, while two manufacture components, such as screws
and wooden dowels used to assemble IKEA furniture.
Inventories and receivables
Inventories mostly consist of IKEA products in warehouses. Inventory
levels went down in FY20 and remained low during FY21. Transport
constraints in combination with high customer demand created a
challenge to replenish inventory to a desired level.
Receivables is money owed to the Inter IKEA Group by business
partners. Most receivables relate to franchise fees and products sold
and invoiced to IKEA franchisees.
Group equity, provisions and liabilities
Equity is the capital invested by shareholders of Inter IKEA Group plus
accumulated profts over time. Equity increased by EUR 600 million
during FY21.
Note to reader: the included abbreviated fnancial statements are an abridged version of the consolidated fnancial statements of Inter IKEA Holding B.V. as included in the Annual Report for the
fnancial year 2021. An unqualifed auditor’s report dated 28 October 2021 was issued on these fnancial statements. Inter IKEA Holding B.V.’s consolidated fnancial statements, from which these
abbreviated fnancial statements have been derived, have been prepared in accordance with Part 9 of Book 2 of the Dutch Civil Code.
47%
equity ratio in FY21
45%
equity ratio in FY20
12 | Inter IKEA Group Financial Summary FY21
The IKEA logo and the IKEA wordmark are registered trademarks of Inter IKEA Systems B.V. All copyrights in the pictures used in this document are owned by Inter IKEA
Systems B.V. and may in no way be copied or reproduced without the consent of Inter IKEA Systems B.V.
© Inter IKEA Systems B.V. 2021
IKEA Facts & Figures FY21
Released 14 October 2021 Released 3 November 2021 Coming early 2022
IKEA Sustainability Report
People
& Planet
Positive
IKEA SUSTAINABILITY STRATEGY PUBLISHED: JUNE 2018
© Inter IKEA Systems B.V. 2018
For further information, please visit Inter.IKEA.com
Inter IKEA
Group Annual
Report FY21
Inter IKEA Group
List of subsidiaries
FY21
Inter IKEA Group Financial
Summary FY21
Inter IKEA Group Tax
Report FY21