Inter IKEA Systems B.V It s all about HOME FURNISHING

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1 Inter IKEA Systems B.V It s all about HOME FURNISHING

2 Inter IKEA Systems B.V It begins with people s life at home the many people with big dreams and thin wallets.

3 Inter IKEA Systems B.V And a business idea that says we shall offer a wide range of well-designed, functional home furnishing products at prices so low that as many people as possible can afford them.

4 Inter IKEA Systems B.V Inspiring us to provide solutions to people s needs, dreams, aspirations and challenges in their everyday lives.

5 Inter IKEA Systems B.V This is why the IKEA vision is to create a better everyday life for the many people. It is the reason why IKEA exists, and why customers choose IKEA. It is why suppliers choose to work with IKEA. It is the driving force behind our success together with our business partners.

6 Inter IKEA Systems B.V Our long-term direction

7 Inter IKEA Systems B.V IKEA has a long-term direction called Growing IKEA Together, and from it come our main objectives: To be the leader in life at home To ensure growth and sustained long-term profitability

8 Inter IKEA Systems B.V and this direction guides us in everything we do a direction every supplier with whom we partner must understand

9 IKEA Supplying shortens the distance between customer needs and supplier possibilities.

10 The Supplying Process Suppliers turn large volumes of furniture into enormous amounts of flat packs IKEA supplying starts when a tree is planted in a verified reforestation area Products are designed and developed with supplying in mind; Supplying links the resources of thousands of suppliers Huge volumes of IKEA flat packs travel the world every day All the way from a tree in the forest into the homes of the many people IKEA stores make products available for visitors; Flat packs let every customer become a part of the supply chain

11 IKEA Tasks for Purchasing & Suppliers Source IKEA products with good function, quality, and sustainability at the lowest possible cost. Take responsibility to deliver customer experienced quality. Implement environmental and social demands Secure that the products are available to meet our customers our >327 stores at all times. Improve, develop and secure a professional relationship with our supplier partners. Work with continuous improvements in Best Buy, excellence in running operations and production. Recruit, retain and develop competence. Facilitate in bringing IKEA products from the Supplier to the Customer and the Customer s Expectations to the Supplier.

12 Or, More Simply Customers Suppliers

13 Customer Expectations on IKEA & Suppliers Sustainability Low Prices Happy Customers! Availability Quality

14 The Global Purchasing Network 9,500 products 1,074 suppliers in 55 countries 29 Trading Service Offices in 25 countries Purchasing by region Europe 62% Asia 34% North America 4%

15 Trading Area South Europe Purchasing Network 73 suppliers in 7 countries Belgium, France, Ireland, Italy, Portugal, Spain, and the UK 4 Trading Service Offices in 4 countries Milan, Italy Paris, France Madrid, Spain Porto, Portugal

16 Trading Area South Europe Category Frame The Categories within TA South Europe are: Flatline Wrapped, High Gloss Appliances Upholstery Frames Machine Woven Carpets Mattresses Plastic Metal Open & Close Leather & Artificial Leather Glass Paper & Wall Deco Represented by: 10 Business Teams

17 Total IKEA Material Frame: 40 Categories

18 Trading Area South Europe Business Figures FY11 Purchasing 4,282 article numbers 12.5% of total IKEA Turnover Retail Sales within TASE Region 30% of total IKEA Turnover 29% of IKEA Stores

19 I trust it s produced under good conditions. No negative effect on the environment. Respecting laws and peoples rights. Made in a sustainable way. It s a fantastic quality. It s easy to take home. It s easy to assemble. It has a great look and feel. It has a great functionality and easy to use. It s durable. It s safe and healthy. It s a very low price. It has very high value for my money. I can afford to make my home better. It has a lower price than from anywhere else.

20 Inter IKEA Systems B.V That s what we do and that s how we do it It s all about HOME FURNISHING!

21 Inter IKEA Systems B.V IKEA believes that Growing Together is the way to future growth and sustained long-term profitability for both IKEA and our Supplier Partners. IKEA wants to Grow Together with suppliers who are capable of developing their business and delivering higher customer satisfaction at a lower cost. Are you ready to meet the expectations of our customers?

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