Lars Thorsén, Ikano Group CEO
Once again, it is time to summarise another exciting year, recapturing the events and activities that have affected our business and contributed to its continued growth.
Undoubtedly, Ikano Industry is one of our fastest growing businesses. The 78-hectare land purchase in Mexico marked the start of our ambitious project to establish a huge manufacturing cluster for mattresses destined to supply IKEA stores in the Americas already in 2021.
Ikano Reinsurance had another successful year in both the Life and Non-life segments and together with IKEA, the business is preparing the 2020 launch of HEMSÄKER home insurance - a simple and affordable solution for the many IKEA customers around the globe. Ikano Bostad faced tough market conditions head on and ended up with a record year in sales of new apartments. Add to this, our new leadership team at Ikano Bank launched a new strategy paving the way for speedy developments particularly in the area of digitalisation.
Two major openings in one year kept our retail colleagues busier than ever: IKEA Batu Kawan in Penang and the Toppen Shopping Centre in Johor Bahru, Malaysia, a 100% Ikano owned entity. All this, while preparing for the upcoming store openings in Manila and Mexico. Also, to be noted for 2019 is the recent re-branding of Quant Marketing to Ikano Insight. Specialised in data analytics, CRM and loyalty (including IKEA Family), we are convinced that our Insight colleagues will bring great value to Ikano and beyond.
As we develop and expand, we place great focus on what makes us unique. Our culture and our values guide us in our everyday decisions and help us to attract competent co-workers who share our aspirations. For all our Ikano businesses, we continue our work to become an even stronger partner to IKEA.
By the end of 2019, our Ikano family had grown to more than 6000 co-workers across the globe - dedicated to developing our businesses in line with our values and the long-term goal to be a fair and sustainable company - this makes me the proudest CEO in the world.
I am proud to be part of Ikano! It is so rewarding to belong to a company that is truly focused on people and values.
The presence of our company makes a marvellous difference in the Mexican labour market that traditionally views employees as numbers and results, and where turnover is very high. Being a part of Ikano, means that you are much more than that. You are a valued team member and this kind of culture will make us very attractive for talent.
At Ikano Industry in Mexico, we aim to be a workplace where being different is appreciated as well as doing everything on fair terms.
There is a lot of great talent waiting for us. Leaders with a people perspective that are looking for a place like Ikano, to grow and develop their teams, just waiting for the opportunity to contribute.
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We create possibilities for better living by offering simple, fair and affordable services, enabling a healthy economy for the many people. Our offer to consumers includes private label cards, credit cards, savings and loans. We deliver sales finance and customer insight services to retail partners and provide businesses with leasing and factoring solutions. We aim to grow significantly in the coming years by becoming a truly digital and entrepreneurial-driven bank – providing solutions that simplify people’s everyday life and help businesses grow.
No. of co-workers: 1,191
Business volume: EUR 6.2 billion
Deposit accounts: 234,000
Leasing contracts: 71,000
Private label cards: 2.9 million
Ikano Bank AB operates in Austria, Denmark, Finland, Germany, Norway, Poland, Sweden and the UK. Ikano Bank LLC operates in Russia.
Producing green electricity with solar panels is a good investment for both the climate and wallet. Ikano Bank’s new financing solution Ikano Jordnära enables more people to make the switch.
According to a survey by Swedish research company Kantar TNS Sifo in 2019, a majority of the Swedish homeowners are considering installing rooftop solar panels to reduce the household’s environmental impact and utility costs. The survey also shows that price is the main reason why people have not yet purchased solar panels. Starting in 2019 a collaboration between IKEA, SVEA Solar and Ikano Bank now makes an investment in sustainable energy possible for the many people on the Swedish market.
A pre-packaged offer of solar cell panels from SVEA Solar is available on the IKEA website under the brand name SOLSTRÅLE. To solve the financing, Ikano Bank offers Ikano Jordnära, a loan for a sum up to 250,000 SEK.
The switch to solar cells should not be more expensive compared to the current electricity bill. Our goal is to enable as many people as possible to choose environmentally friendly alternatives. Ikano Bank’s contribution is to make the investment in solar cells financially feasible.
At the moment, Ikano Jordnära is only available to IKEA and SVEA Solar customers. But in the future, it is possible that Ikano Bank will extend the loan to a variety of sustainable energy sources and not limited to solar energy. The name Jordnära refers to both generating your own energy and for sustainable solutions. It opens up for more similar loans in the future.
We offer space efficient, functional and sustainable homes at affordable prices for people at all stages of life. We develop, build, own and manage tenant-owned apartments, rental apartments, townhouses and nursing homes. We look for new ways to improve not only the homes we offer, but also the surroundings. We want to create communities where people meet, greet and look after one another. A place where people feel at home from the moment they step into their courtyard.
No. of co-workers: 451
Turnover: EUR 307 million
Market value of properties and landbank: EUR 1,670 million
Apt./townhouses under construction: 1,234
Rental apt.: 5,818 (438,000 m²)
Nursing homes: 5 (293 apt., 22,500 m²)
Offices: 2 (25,000 m²)
Landbank: 185,000 m²
Building rights: 10,000 (all phases)
Sweden: Gothenburg, Lund, Malmö, Stockholm, Uppsala, Västerås
Denmark: Copenhagen area
Every year we conduct customer satisfaction surveys, and also home visits, so co-workers can discover first-hand how apartment owners live and experience our products and services. During 2019, we found that our biggest strength was in how we treat our customers.
But working with customer satisfaction starts long before the apartment or neighbourhood is even built. It all starts with a workshop called Life, where we explore the area and its surroundings to figure out the right target group, and what their everyday needs are. Based on that, we plan the area, the size of the apartments and the outdoor environment. When it’s time to sell, we adjust the marketing to attract the specific target group, highlighting the features of the area and the apartments. The sales process goes on for about two years, and during this time, our buyers can choose the interior and visit the construction site. At this stage, we gather feedback on our interior design options and how they experience us as a company.
A few months after the customers have moved in, they are offered to take part in two different surveys where they can rate their new apartment and the contact they have had with Ikano Bostad.
Ikano Bostad co-workers also do home visits, enabling customers to show and explain in more detail what they like and where there is room for improvement.
It is a great opportunity for our co-workers to experience first-hand who our customers are and what it is like to live in our apartments and neighbourhoods.
All these insights are used to develop the interior design, materials, apartment layouts, outdoor environment as well as our own working processes – so that we can improve and simplify the many people’s lives even more. For example, we learned from one project in 2019, that all customers appreciated the courtyard, but only one-third of them had actually used it. So how can we create attractive courtyards that become natural places for our tenants to meet and hang out?
We also learned that the main reason for buying an apartment from us was the price, closely followed by the location, a valuable insight of our customers priorities. Further, the responses revealed that our main strength is in how we take care of our customers - something we are very proud to share.
Ikano Industry aims to be IKEA’s leading supplier of mattresses and related products. Combined, our two facilities in Rogozno and Krajenka, Poland, create one of the largest and most modern mattress production lines in Europe. Over the next 3-5 years, we will establish a manufacturing site in Mexico, extending our markets to also include the Americas. Our focus is to achieve sustainability and quality in everything we do while our company culture, characterised by teamwork and innovation, leads us forward.
No. of co-workers: 925
Turnover: EUR 107 million
Europe, Saudi Arabia, Qatar, Kuwait, Arab Emirates, Turkey, Israel.
Pioneering a new plant and community
In May 2019, Ikano Industry acquired 78 hectares of land in Saltillo, Mexico to establish a 200,000 m² manufacturing cluster for the production of foam-based comfort products designated for the Americas.
At this time, three co-workers from Ikano Industry in Poland packed their bags and set off on their life adventure - to establish a plant on new territory. One year later, the project is moving full-speed ahead and the Ikano family in Mexico is growing fast. We consider the team-building process to be our greatest success. The Ikano values are so universal that, despite our cultural differences, it hasn’t been difficult to find wonderful people who share them. Thanks to these people as well as the friendliness and cooperation of local authorities, our recognition is growing on the local market and we are creating a solid foundation for the future factory.
Today, our family consists of 34 members, and when the plant is finished, we expect to employ some 2000 co-workers. The new industry area in Saltillo will become a real community with nursery for children of co-workers and recreational areas for co-workers to meet up and BBQ, play football and relax. It’s a unique set-up that we hope will attract the enormous number of co-workers we need over the next 3–4 years.
By 2029, Ikano Industry is committed to deliver 950,000 foam mattresses, 750,000 spring mattresses and 1,000,000 upholstered units to IKEA stores in the Americas.
Ikano Re and Ikano Insurance Advisory provide reinsurance solutions and advisory services for the global operations of actors within the IKEA franchise system. Our offering covers areas such as transportation, property, liability and employees.
No. of co-workers: 12
Gross premiums written: EUR 86 million
We are moving forward with our initiative to consolidate the worldwide Ingka Employee Benefit Insurance coverage (Life, Disability, Accident and Medical) under two global insurers, and the reinsurance to Ikano Re is also developing successfully. With this initiative, we aim to secure sustainable insurance coverage and pricing for co-workers, while generating economies of scale and reducing costs. In addition, the large volume of detailed claims data (GDPR compliant) will give us the possibility to analyse and determine the root causes so that we can implement preventive risk management measures to e.g. reduce healthcare costs and improve the everyday lives of co-workers.
Co-workers in major markets like Russia, Canada, France and China are on board. By the end of 2019, more than 80,000 co-workers in 14 countries were covered by our employee benefit insurance.
A digital home insurance concept developed and owned by Ikano with the ambition to contribute to a more secure life at home for the many people. With the launch of HEMSÄKER, we expand the IKEA product offering from furniture to also include services. A pilot has been launched together with IKEA in Singapore and Switzerland, with more countries to follow.
IKEA creates a better everyday life for the many people at home and the protection of personal possessions is an important part of this. HEMSÄKER home insurance covers personal belongings in case of unexpected events like water damage, fire, theft or accidents.
With just a few clicks, you have protection for your things and the ones you love in your home.
We create a better everyday life for the many people by offering well-designed, affordable home furnishings through our IKEA stores and ecommerce in Singapore, Malaysia and Thailand. We provide a great day out at our Ikano centres – meeting places that are anchored by IKEA and the hub of life in our communities. Our team is now well on the way to bringing IKEA to Mexico in 2020, to the Philippines in 2021 and to Vietnam in the years ahead. With our co-workers and many partners, we are inspiring millions to make home count and live a more sustainable everyday life.
No. of co-workers: 3,432
Turnover: 758 million EUR
No. of catalogues released: 7.3 million
No. of visits: 30.6 million
No. of children to Småland: 232,000
No. of meatballs sold: 33 million
No. of chicken balls sold: 2.4 million
No. of veggie balls sold: 0.6 million
No. of visits: 71.6 million
Gross leasable m²: 545,000 incl. IKEA stores
No. of rented units: 1,680
When our new shopping centre Toppen in Johor Bahru, Malaysia, opened on November 13, 2019, some 50,000 people poured through the doors to explore our 116,849 square metres of retail space. Children squealed with delight in our splash park and blew bubbles in the garden. Families filled up our restaurants and cafes. Teenagers whizzed around the skateboarding park and lined up to try the rock-climbing wall. A month-long community festival kicked off with yoga sessions, art workshops and a TikTok enabled lip-sync competition that prompted many to sing and dance along to our Toppen tune!
The open-concept mall is anchored by our IKEA Tebrau store and has space for some 300 other tenants. Toppen means “great” in Swedish and, our great centre also has an open rooftop. So, the name is a reflection of its concept. The centre expects to attract about 15 million visits per year – driving many to our IKEA store at the same time.
With great shopping, tasty food and plans to host some 1,500 events per year, the Topp is set to become the heart and hub of the community for the people of South Malaysia – bringing our Meeting Place strategy to life like never before.
IKEA is on a journey to enable 1 billion people around the world reduce waste, conserve energy, save water and recycle more. Last year, our collaborations with Singapore’s National Environment Agency (NEA) earned us a place in the country’s masterplan for sustainable development. In June, we teamed up with the NEA to host the launch of its Say YES to Waste Less campaign. Next, we teamed up to give away some 18,000 IKEA recycling bins, increasing awareness on how to Recycle Right. In Thailand, we supported the WWF Eco-Schools program and worked with student leaders implementing sustainable solutions in their communities.
Last year, our IKEA stores launched a program to weigh every morsel of food thrown out in our restaurants and track sources of waste - from our food preparation process and possible over-production to customer left-overs. The heightened awareness helped our IKEA kitchen teams take small actions that have reduced food waste by up to 30%.
IKEA Batu Kawan
IKEA Bang Yai
Batu Kawan Link Building
For the year 2019, Ikano Group achieved a growth of 6 percent in turnover, including interest income from finance activities. We continued to invest in our businesses to ensure a sustainable growth. Among the numerous investments, EUR 57 million were made in our real estate business, EUR 121 million were processed for the construction of new IKEA stores and a shopping centre in Southeast Asia as well as for the first IKEA store in Mexico and EUR 32 million were invested to implement a new plant in Mexico for our Industry business.
As it is also important for us to show we care and act responsibly where we do business, we donated more than EUR 2 million to local communities and charities in 2019.
1. Lars Svensson - Head of Group Sustainability
2. Tomas Wittbjer - Business Leader Insurance
3. Malcolm Pruys - Country Manager IKEA Mexico
4. Sebastian Łuczyński - Managing Director Ikano Industry
5. Mats Håkansson* - Group Vice President
6. Yohann Adolphe* - Group CFO
7. Robert Jaaniste - Managing Director Ikano Bostad
8. Jean Champagne* - Head of Group HR
9. Henrik Eklund - Managing Director Ikano Bank
*Member of the Ikano S.A. Management Team
10. Daniel Skoghäll - Chairperson of the Board Ikano Bostad
11. Marie Gällstad* - Head of Group Communications
12. Lars Thorsén* - Group CEO
13. Karen Pflug - Managing Director Ikano Insight
14. Christian Rojkjaer - Managing Director IKEA Southeast Asia & Mexico
Thanks for reading! The time ahead will be challenging for all of us and as a long-term company we want to act responsibly. We hope that together, we can continue to find solutions that add value to people's lives and contribute to positive change.