A financial analysis of the IKEA company. I discuss the net income, the balance sheet and the income on the food in restaurants.

1. Financial analysis IKEA
Els Matthys

2. IKEA company
• Home products company
• Swedish
• Since 1943
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3. IKEA company
• Not quoted on the Stock Exchange
• 280 stores in 26 countries
– Still growing
• Analysis based on
annual results
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4. Consolidated income statement
• Net income:
2009  2010: + 154 mln €
• Revenue: *Revenue includes sales of goods and rental income
from commercial property
2009  2010: + 1693 mln €
• Gross profit:
2009  2010: + 1117 mln €
(more costs in 2010)
Source: http://www.ikea.com/ms/nl_BE/pdf/yearly_summary/Welcome_inside_2010_update.pdf 4

5. Consolidated income statement
Increase of the net income:
 2010: 12 new stores +
*Revenue includes sales of goods and rental income
investments other stores from commercial property
 Sales increase: + 2,4%
Overall sales: + 7,7%
 more income
Source: http://www.ikea.com/ms/nl_BE/pdf/yearly_summary/Welcome_inside_2010_update.pdf 5

6. Consolidated balance sheet - assets
• Assets:
2009  2010:
37,1 bln €  41,3 bln €
( + 4168 mln €)
• Property, plant and equipment:
2009  2010:
14,2 bln €  15,9 bln €
(+ 1776 mln €)
Thanks to the 12 new stores
• Cash and securities:
2009  2010: + 2621 mln €
Total increase: about 4 bln €
Source: http://www.ikea.com/ms/nl_BE/pdf/yearly_summary/Welcome_inside_2010_update.pdf 6

7. Consolidated balance sheet – equity
and liabilities
• Group equity:
2009  2010: + 3066 mln €
 More stores = more equity
Source: http://www.ikea.com/ms/nl_BE/pdf/yearly_summary/Welcome_inside_2010_update.pdf 7

8. Low food prices
• Low food prices in restaurants:
2 advantages:
1. People come for food,
see products, tempting to buy
1. Profit on the food:
2010: 1,1 bln € turnover
Source: http://www.ikea.com/ms/nl_BE/pdf/yearly_summary/Welcome_inside_2010_update.pdf 8

9. Belgian stores
• Turnover IKEA
2010: 747 mln €
2009  2010: + 3,2%
• Turnover average Belgian furniture stores
2009  2010: + 1,3%
• IKEA future:
2011: 65 mln € for expansion + new stores
New stores on the list: Antwerp and Bergen
Source: http://www.beursduivel.be/ 9

10. Thanks for your attention
Els Matthys - 2 AF 01