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IKEA Canada 2017Summary Report

© Inter IKEA Systems B.V. 2017

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Hej,

I’m delighted to welcome you to IKEA Canada’s 2017 Summary Report. In it, we share with you our accomplishments from this past year. We continue to strive each and every day to create a better everyday life for the many people, for both our customers and our co-workers, and also be a leader in the Canadian retail landscape. This past year we made considerable progress toward these goals.

This year, Canadians saw continued high housing costs and mounting debt, resulting in record low discretionary income. As a result, we concentrated on what makes IKEA unique – understanding how Canadians live, and offering relevant products and inspiring home furnishing solutions at the lowest possible prices.

Fiscal Year 2017 was a good year for IKEA Canada as we continued to see positive sales growth through all channels. Our overall sales grew to $2.17 billion, which represents an increase of 5.9 per cent for total sales.

In October, we celebrated a major milestone for IKEA – 40 years in Canada! To commemorate the occasion, IKEA hosted the Then & Now Exhibit in Toronto. The exhibit invited visitors to journey through the decades to see how IKEA has helped shape life in Canada. It’s incredible that IKEA Canada started in Richmond, BC with 65 co-workers. Today, we’ve grown to more than 6,300 co-workers!

We also made progress in our coast to coast expansion strategy:

• We opened our 13th store in Halifax in September.

• We will open a new store in Quebec City in 2018 and London in 2019.

• We opened 12 Collection Points, owned and operated by third-party providers, to make shopping at IKEA easier in all 10 provinces.

• We broke ground on a new customer distribution centre in Beauharnois, QC and announced a third centre in Richmond, BC. Both will ensure our products are available when and where our customers want to shop.

This year also marked a personal milestone for me at IKEA. In February, I was honoured to join IKEA Canada as President. Since arriving in Canada, I have travelled the country visiting our stores to meet our incredible co-workers. The passion IKEA Canada co-workers have for home furnishings and meeting our customers in a caring and honest way continues to impress me.

That’s why I’m committed to ensuring that IKEA continues to be a Great Place to Work. Some of the ways we worked towards this in 2017 include launching a new RRSP program for all co-workers, committing to providing schedules four weeks in advance and offering guaranteed hours for all co-workers.

As we look forward to 2018, we see the “Beautiful Possibilities” that lie ahead of us. We will continue to lead by example with our low prices and democratic design that will allow Canadians to create the beautiful kind of home they want. To a glorious future!

Take care,

Marsha Smith

President IKEA Canada

MARSHA SMITHPRESIDENT, IKEA CANADA

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TABLE OF CONTENTS06 Fiscal Year 2017 Milestones

08 Financial and Business Update

10 Celebrating 40 Years in Canada

12 Life at Home

14 Democratic Design

16 Customer in the Centre

18 Sustainability

24 Becoming More Accessible to the Many Canadians

26 A Great Place to Work

30 Safer Life at Home

32 A Look Ahead to 2018

34 IKEA in Canada

36 Meet our Management Team

38 About IKEA Canada

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FISCAL YEAR 2017 MILESTONES

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FISCAL YEAR 2017 ECONOMIC CONTRIBUTIONS

Ernst & Young was commissioned by IKEA Canada (“IKEA”) to quantify the company’s total economic and tax contributions during Fiscal Year 2017. This study considered IKEA’s $2.2b of retail sales, management, and service and distribution centres. Through its operations and capital investments, IKEA delivers value to households, businesses and governments across Canada in the form of jobs, taxes, and purchases from domestic suppliers.FISCAL YEAR

2017 BUSINESS PERFORMANCEIKEA Canada continued to experience positive sales growth in Fiscal Year 2017*, further reinforcing our position as the leader in life at home in Canada. Total sales reached $2.17 billion, an increase of 5.9 per cent from the previous year.

In 2017, IKEA Canada continued its journey to become the world’s leading multichannel home furnishing retailer, making the shopping experience more accessible for the many Canadians. In response, IKEA Canada’s online visitation jumped to 95 million, an increase of 8.7 per cent from 2016. Meanwhile, IKEA stores across the country opened their doors to more than 28 million visitors in 2017.

With the influx in online visitors, IKEA Canada’s eCommerce sales also continued to grow. In 2017, online sales reached $184.6 million, a 26.7 per cent uplift over last year. Food sales also complemented store growth, with sales totalling $90.3 million, an increase of 5.8 per cent.

For the fourth year in a row, IKEA Canada successfully maintained its position as market leader in the home furnishing category, seeing an increase in market share of 0.2 per cent to 9.6 per cent.

*September 1, 2016 – August 31, 2017

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40TH ANNIVERSARYIn Fiscal Year 2017, IKEA Canada celebrated 40 years of creating a better everyday life for the many Canadians.

Since opening our first store in Richmond in 1976 with 65 co-workers, we have grown to 13 stores in British Columbia, Alberta, Manitoba, Ontario, Quebec and Nova Scotia, six Pick-up and Order Points, 13 Collection Points, an eCommerce channel, two distribution centres and more than 6,300 co-workers.

Fiscal Year 2017 was the perfect time to reflect on the past 40 years, while looking forward to our lofty ambitions for the next 40.

IKEA THEN & NOW EXHIBIT

In October 2016, IKEA hosted the Then & Now exhibit at the Design Exchange, Canada’s Design Museum.

We invited visitors to journey through the decades to see how IKEA has helped shape life at home in Canada. From our humble roots in Älmhult, Sweden through to the present day and beyond, IKEA Then & Now showed the story of IKEA in Canada – and featured many products from our customers’ homes right here in Canada!

The exhibit also featured an iconic IKEA ball pit – for adults and children alike – and visitors had an opportunity to see themselves on the cover of the 2017 IKEA Catalogue. IKEA Then & Now also provided visitors with access to IKEA global Head of Design, Marcus Engman, and Senior Product Designer Henrik Preutz. Both shared more about how IKEA works with Democratic Design, our unique take on design that focuses on not just making things, but making things better.

CO-WORKER CELEBRATIONS

We know that our success is largely due to the dedication and skills of our more than 6,300 co-workers across the country. IKEA saw a unique opportunity to engage our co-workers by encouraging them to participate in several 40th anniversary celebrations. These included a design contest, an opportunity to win a trip to Toronto to visit the IKEA Then & Now exhibit and a chance to star in a collaborative and energetic music video set to a bilingual mix of songs.

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LIFE AT HOMEIKEA wants to inspire and reach as many people as possible, making us the leaders in “Life at Home.” That’s why we regularly explore Canadians’ needs, dreams, and frustrations with their spaces to truly understand what will make life at home better for them.

Insights gathered through research, customer surveys and IKEA co-worker visits to more than 400 homes across Canada in 2017 told us more about people’s needs and dreams. These insights revealed two key trends that shape how Canadians live their lives at home: urbanization and technology. These trends have transformed our lives and our homes, creating a shared space where various activities take place rather than distinct rooms that separate people.

These insights enable each of our stores across Canada to reflect local living situations, presenting realistic rooms that inspire customers to create easy, simple and affordable updates to their homes.

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DEMOCRATIC DESIGNDESIGN FOR EVERYONE: BETTER PRODUCTS, BETTER HOMES

At IKEA, we believe that quality and design should be affordable to the many, and our products should improve our customers’ lives at home. We believe that good design means making products that are more than just beautiful, but also innovative in how they work, able to withstand daily use, sustainably produced and affordable for everyone.

This design philosophy is known as Democratic Design and consists of five key design pillars that are at the heart of every IKEA product. A well-designed product should combine form, function, quality, and sustainability, all at a low price. Our product developers must find the right balance of these five elements throughout every step of the design process.

In Fiscal Year 2017, we launched several new products and improved classic design.

POÄNG

In September 2016, the POÄNG armchair turned 40. While Scandinavian in design, it was actually created by Japanese designer Noburu Nakamura. This iconic armchair has offered 40 years of style and comfort. By being as efficient as possible and keeping waste to a minimum, we also managed to lower the price over the years. Today, POÄNG is our bestselling armchair, with over 30 million sold worldwide and one million sold every year in Canada.

SMART LIGHTING

In April 2017, we launched Smart Lighting, where the lighting products are plug-and-play, meaning there’s no need for new wiring or hiring an electrician. TRÅDFRI products mean you can immediately change the light using the remote control. This is an example of how something simple like a lightbulb can do so much more than allow people to have better light.

KUNGSBACKA

KUNGSBACKA is a new kitchen door style released in Fiscal Year 2017 and is the result of a truly sustainable design that helps save the earth’s resources. The door front is modern and sleek and is made of recycled wood wrapped in a plastic film. The film is made of recycled plastic bottles, which reduces waste and gives the plastic new use.

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CUSTOMER IN THE CENTREAs life changes and evolves, it becomes increasingly important for IKEA to truly understand our customers. Our vision is to create a better everyday life for the many people, and we recognize that our customers are at the heart of everything we do.

We are incredibly proud of our world-class Customer Support Centre, based in Montreal, and the key role these co-workers play in helping our customers across the country. Last year alone, our Customer Support Centre had 1.5 million connections with customers, and we are pleased that 75 per cent of all calls were answered within 60 seconds.

EXCEPTIONAL CUSTOMER EXPERIENCE ACROSS ALL TOUCHPOINTS

Canadians are more time-crunched than ever, which is why we continue to evolve our shopping experience. In such a large country, it is important to offer a variety of options that can be used to make shopping at IKEA even easier. We want our customers to have a positive experience every time, no matter which shopping option they choose.

The IKEA store will always be central to the shopping experience to ensure that customers can touch and feel our products. As we look to make IKEA more accessible and convenient, we want to offer new and inspiring ways for customers to shop with us. New options – Click & Collect, Pick-up and Order Points, the rollout of Collection Points, continuous improvements in our eCommerce and customer-focused distribution channels – make shopping online affordable for many more Canadians.

CUSTOMER-FACING CO-WORKERS

In 2017, IKEA Canada continued to invest in developing our co-workers and improving our services to meet and exceed customer expectations. We know success relies on helpful, friendly and knowledgeable co-workers who have the tools and opportunities to take care of the customer.

We increased the number of co-workers on the sales floor to make sure customers have an experience that is friendly, fast, easy and above all, seamless. In the coming year, we’ll continue to support this same customer experience throughout our multichannel environment.

CUSTOMER SUPPORT CENTRE FACTS AND FIGURES

1.5 million interactions with customers

More than 47,500 interactions on social media

75 per cent of calls answered in 60 seconds

11,000 interactions via chat

WHAT OUR CUSTOMERS ARE SAYING

“The service I have received from not only one, but two of your staff has left me in awe. I used the chat feature and connected with George. He was friendly, helpful, and didn’t provide me with an explanation to just ‘go away’. He had his co-worker Natasha contact me to finalize and explain the next steps for ordering. She touched base frequently to provide me with updates… and went out of her way to ensure that I was a satisfied customer.” - Sandra

“I would just like to say thank you for the excellent customer service and seamless process of ordering products from your online store. All of the parts included in each box were successfully accounted for, and the delivery of the products ordered was excellent.” - Jacquie

“I wish to thank the IKEA staff responsible for looking after my concern. Customer service of this nature is greatly appreciated and does not go unnoticed.” - Paul

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SUSTAINABILITYWE’RE BUILDING A SUSTAINABLE FUTURE

IKEA is committed to taking a leading role in building a sustainable future. From the beginning, we have focused on resource efficiency. This keeps our costs low and passes on low prices to our customers, creating a better everyday life for the many people. In more recent years, we have committed to transforming our business to have a positive impact on people and the natural world.

ALL-IN FOR A CLEAN ENERGY FUTURE

IKEA Canada generates renewable energy equivalent to approximately four times the energy we consume across the country. The IKEA Group has committed to energy independence by 2020: to produce more renewable energy than the total energy consumed in all of our operations worldwide. IKEA Canada accomplished this milestone in 2015.

In January 2017, IKEA Canada announced the purchase of a second wind farm in southern Alberta. The 88MW Wintering Hills project, located about 130 km east of Calgary, has 55 turbines that together generate enough equivalent electricity to power 54 IKEA stores or 26,000 typical Canadian homes. In 2013, IKEA Canada purchased the 20-turbine 46MW Pincher Creek wind farm, located about 215 km south of Calgary.

Over the summer and fall of 2017, we began construction on our Burlington and Ottawa stores to outfit them with rooftop solar panel installations, joining the Etobicoke, Vaughan and North York stores, which have had rooftop solar installations since 2010.

SUSTAINABLE LIVING FOR THE MANY PEOPLE

IKEA Canada wants our product range to inspire a more sustainable life at home, and customers are on board. We continue to experience strong sales of products that enable water savings, energy savings, waste reduction and sorting, and healthy living. In 2017, sales of these products increased by 7 per cent.

ENABLING LOW CARBON MOBILITY

In March 2017, IKEA switched on 10 new Level 3 DC fast chargers for electric vehicles – two at each store in Ontario. These charge points provide free rapid charging along 400-series highways to support virtually carbon-free intercity travel. Funding for these 10 units came from the Ontario Ministry of Transportation as part of the Electric Vehicle Chargers Ontario grant program. These chargers are in addition to the two Level 2 electric vehicle chargers at each IKEA location across Canada.

WORKING TOWARDS A CIRCULAR ECONOMY

IKEA recognizes the need to accelerate the transition to a circular economy, which maximizes the value and usefulness of material in our society. The growth of today’s linear economy requires ever-greater use of virgin raw materials and produces excessive waste. We see great opportunity in the transition to a circular economy – to deepen relationships with our customers, add value throughout the useful life of our products, and offer solutions for products when our customers are finished with them.

We offer a free take-back and recycling service for household batteries and lightbulbs, as well as a mattress removal and recycling service for a small fee with a new mattress delivery. In many markets, we have held collection events for various products, with a promotional offer for customers who brought in an item they were finished using or that had reached its complete lifecycle.

IKEA Canada is also a founding partner and supporter of the Circular Economy Lab, a collaborative initiative to advance Canada’s transition to a circular economy.

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CO-CREATING WITH SOCIAL ENTERPRISES

IKEA sees business as a force for positive change, and social enterprises use the power of business to address challenges in our society.

With this philosophy, IKEA Canada is proud to have partnered with Setsuné Indigenous Fashion Incubator on the co-creation of a limited-edition collection of textile products made from salvaged IKEA textile waste. The collection was called ÅTERSTÄLLA, which in Swedish means to restore, heal or redecorate. The material, which was destined to become waste, was instead “upcycled” into 2,000 handmade products for preparing and storing food around a traditional Indigenous kitchen. Working with salvaged IKEA textiles also represented the traditional philosophy of “let nothing go to waste.” The collection launched at IKEA Etobicoke in June 2017 and was available while supplies lasted.

SUPPORTING CHILDHOOD DEVELOPMENT

IKEA Canada supports childhood development in each of the markets in which we operate. With one in five children in Canada at risk of going to school on an empty stomach, IKEA Canada partnered with the Breakfast Club of Canada in November 2016. We committed to provide one school breakfast for each breakfast sold at an IKEA restaurant throughout that month.

IKEA co-workers also volunteered their time to pack breakfast bags to be delivered to schools close to each IKEA Canada unit. In addition, IKEA contributed cooking and eating products to support breakfast programs across the country. In total, IKEA Canada has contributed approximately $120,000 to Breakfast Club of Canada in food, home furnishings and financial contribution over the past year. We have committed to continue this partnership for at least two more years.

STANDING WITH COMMUNITIES AND CO-WORKERS IN NEED

When flooding isolated and damaged parts of Quebec and the Ottawa Valley in May 2017, IKEA Canada supported our co-workers, their families and the local communities. Affected co-workers received three paid days to account for being unable to leave their homes, the need to repair their homes, or to support immediate family members who may have been affected. IKEA also contributed $10,000 to the Canadian Red Cross on behalf of our Ottawa, Montreal and Boucherville stores to support immediate relief efforts for those in greatest need.

As wildfires ravaged the interior of British Columbia in summer 2017, IKEA Canada again offered support to our affected co-workers. We donated $10,000 to the Canadian Red Cross on behalf of our two BC stores. IKEA will also support the reforestation process later through our ongoing partnership with Tree Canada. In 21 years, we’ve planted over 30,000 trees and shrubs together across the country.

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EXPANSIONIn 2017, we built IKEA Halifax,

designed as the most sustainable IKEA store in Canada and a

flagship for future developments.

RENEWABLE ENERGYThrough our two wind farms in Alberta and rooftop solar installations, IKEA Canada produces renewable energy equivalent to more than four

times our energy consumption across the country.

SEAFOODAll seafood sold at IKEA

restaurants and Swedish Food Markets is third-party certified as responsibly sourced by the

Marine Stewardship Council and Aquaculture Stewardship Council.

COTTONAll cotton in IKEA products

comes from more sustainable sources (through the Better Cotton Initiative

or equivalent standard).

ELECTRIC MOBILITYAll IKEA Canada stores feature

electric vehicle charging stations to support the adoption of near-zero-emissions transportation.

SOCIAL IMPACTIKEA is proud of our 21 year

partnership with Tree Canada, greening communities across the

country. We also support childhood development through our partnership

with Breakfast Club of Canada, making sure as many children as possible have access to a healthy

morning meal.

FLAT PACKIKEA is known for our

iconic “flat pack” method of packaging, which dramatically

decreases the number of shipments required and the

associated emissions.

IWITNESS GLOBAL CITIZENS PROGRAM

Each year, IKEA sends co-workers to visit programs the IKEA

Foundation funds through Good Cause Campaigns. Co-workers have visited UNICEF, Save the

Children and UNHCR programs in Malawi, Kosovo, Jordan, and

South Africa.

WASTE DIVERSIONSIn stores, sorting and recycling programs at each location divert

85 per cent of waste material from landfill.

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BECOMING MORE ACCESSIBLE TO THE MANY CANADIANSIn Fiscal Year 2017, IKEA Canada continued our journey to become the world’s leading multichannel home furnishing retailer. For IKEA Canada, this means creating a more convenient, enjoyable and affordable shopping experience for the many Canadians, no matter how or when they choose to interact with IKEA.

CANADIAN EXPANSION JOURNEY CONTINUES

In 2015, IKEA Canada announced our ambition to double in size by 2025 and expand from coast to coast. To achieve this goal, IKEA Canada will open in new locations with existing formats and also introduce some new formats.

The journey began in Halifax when we announced the first store in Atlantic Canada, which opened in late September 2017. We are proud that IKEA Halifax was constructed to operate as the most sustainable IKEA store in Canada and will be the first to be LEED certified. We began construction on a new store in Quebec City in June 2016 and we announced a store for London, Ontario in October 2017. With one new store already open and two coming soon, our plans to double the number of stores in Canada are well on their way.

PICK-UP AND ORDER POINTS

Since December 2015, IKEA Canada has launched six Pick-up and Order Point locations in southern Ontario and Quebec City. At one-tenth the size of a traditional IKEA store, the Pick-up and Order Points give customers the option to pick up their online or store purchases closer to home. At these locations, customers can also access support services and computer stations to view the entire product range, with the help of IKEA co-workers. Customers can also browse a small range of the most popular IKEA products, which are available for immediate takeaway. The success of the Pick-up and Order Points shows that IKEA customers are excited to shop the brand in more accessible ways.

COLLECTION POINTS

IKEA Canada also made great strides in making the brand more accessible to the many Canadians in all 10 provinces in 2017, with the launch of new Collection Point locations. Successfully introduced in 2016, Collection Points allow customers to buy products online and pick them up closer to home for substantially less than the average cost of home delivery in the market. Owned and operated by third-party service providers, 12 new Collection Points were introduced in 2017, bringing the total to 13 locations.

CLICK & COLLECT

Customers welcomed the rollout of Click & Collect service at all IKEA Canada stores in 2017. Click & Collect is tailored to meet the needs of time-crunched IKEA customers who want to take advantage of the convenience of picking up their purchases without shopping in store.

IMPROVING DISTRIBUTION TO BETTER REACH OUR CUSTOMERS

IKEA Canada is also making improvements to our logistics and distribution networks to better reach our customers. We broke ground in 2017 on a new customer distribution centre in Beauharnois, QC, which will replace the existing Brossard Distribution Centre. We plan to open the Beauharnois Customer Distribution Centre in late 2019. To improve the shopping experience for customers in western Canada, IKEA will also open a new customer distribution centre in Richmond, BC in spring 2018. Both the Beauharnois and Richmond Customer Distribution Centres will further enable IKEA to have our products in the right location, closer to our customers.

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RECRUITMENT AND TALENT APPROACH

Our values-based recruitment continues to attract high-potential co-workers and leaders to our organization. Last year alone saw 71,221 applications for roles at IKEA.

As we look to double the number of co-workers in the coming years, it is imperative that we also foster talent within IKEA. Last year saw the rollout of programs that provide exceptional learning and development opportunities, including a high-potential program and a deputy store manager program. Programs such as these are vital to support our coast to coast expansion plans.

We truly believe every IKEA co-worker is considered a talent and we work to provide exceptional learning and career opportunities. One of the ways we do this is through our Talent Week. This is a global week-long event that occurs simultaneously in all IKEA units and countries around the world. Co-workers have the opportunity to connect with each other and explore all the different ways to grow with IKEA. In 2017, over 45,000 co-workers participated globally. All Canadian co-workers were invited to several events and activities designed to help them discover the many ways they can grow and develop their careers at IKEA.

In Fiscal Year 2017, 2,253 new co-workers joined IKEA Canada and we are now a dedicated team of more than 6,300 co-workers nationwide across retail, properties and distribution services.

IKEA is a place where down-to-earth, hard-working individuals can thrive and be successful. We create an environment where co-workers can stretch and develop but where we can also take care of them. It is our ambition to be seen as a unique, meaningful and trusted company and employer.

IKEA co-workers are our best ambassadors and the key to developing our business and delivering results. They are instrumental in how the IKEA brand is seen across the country in the overall customer experience, sales, after-sales support and the overall store experience.

TACK!Tack, or “thank you” in Swedish, is the IKEA annual employee recognition initiative. This year, IKEA Canada said Tack by contributing an extra $1,235 into every full-time co-worker’s RRSP.

A GREAT PLACE TO WORK

A MODERN AND HUMANISTIC WORKPLACE

Staying true to our strong culture and values, IKEA Canada wants to be seen as an honest and trustworthy company. We want our workplace to be attractive, modern, humanistic and inclusive.

With the ambition to be one of Canada’s top employers, we are focused on better recognizing the realities of our valuable co-workers today. This means offering flexibility to our co-workers to meet the demands of life outside IKEA, while understanding the needs of the business. In Fiscal Year 2017, we successfully implemented four-week scheduling so our co-workers can better plan their lives and incorporate a better work-life balance.

To further support co-workers and position ourselves as a Great Place to Work, we will offer every co-worker a minimum of 12 hours or more of work each week before the end of Fiscal Year 2018. We continue to add more full-time opportunities in many of our units so that co-workers see IKEA as a long-term career. These positive changes – along with the implementation of a more competitive Group RRSP program for co-workers and Total Rewards offering – will help us attract and retain future talent to support our growth.

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BY THE NUMBERS:

CANADA’S GREENEST EMPLOYER

For the ninth consecutive year, IKEA Canada has been named one of Canada’s Greenest Employers by Mediacorp Canada Inc. We are committed to having a positive effect on people and the planet and our more than 6,300 co-workers make sustainability a part of their everyday work. As a company, we have made strong commitments to be a leader for a sustainable future. We also want our co-workers to be proud to work for a company that is committed to tackling social and environmental challenges.

FORBES BEST EMPLOYER

In 2017, we were delighted to be named one of the Best Employers in Canada by Forbes Magazine.

We have 6,300 active co-workers

53 per cent of IKEA managers are female

Our oldest co-worker is 79 years old

Our longest-serving co-worker has worked 37 years

IKEA received 71,221 applications

We hired 2,253 new co-workers

“Each morning I am thankful to wake up and face the workday smiling. I know that I am heading to a place of inspiration, forward thinking and positive change. A place where no idea is wrong and the possibilities for learning and growth are endless. Working at IKEA means that I get to be me while teaming alongside a group of supportive, passionate and unique individuals.”

- Karina Sales Team Leader, IKEA Etobicoke

“I’ve had five different job titles, earned a Bachelor in Design, started my professional career, gained an amazing mentor, took part on countless projects and initiatives, planted many trees, received co-worker of the month, was one of Santa’s elves, drove through the Rockies, had a picnic in Peggy’s Cove and watched a completely new store come to life. All of this happened in 7 years, thanks to IKEA”

- Chanel Graphics co-worker, IKEA Vaughan

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CHILDREN’S IKEA

IKEA puts a special focus on children’s products, which must meet the highest standards of quality and safety worldwide.

Co-workers spend time each year learning about children’s developmental needs, safety and health. Our Child Safety First training programs teach them about IKEA products that are designed for children to learn and discover.

IKEA thoroughly tests each part and designs products through the eyes of a child. Then, if products are used in a different way than intended, they are still safe and secure.

We test IKEA children’s products to strict national and international safety standards at our own third-party-accredited test laboratory in Älmhult, Sweden. We also conduct safety checks of our products at independent, accredited test laboratories and institutes around the world.

From continued product innovation to the high standards we set for ourselves, we continue to look for ways to set a leading example within the home furnishings industry.

Secure it!

SAFER LIFE AT HOMEWe all want our homes to be a safe place. When we work together, we can reduce the risk of accidents.

Safety is a top priority at IKEA and we have taken a leading role in raising awareness of safety hazards in Canadian homes. These are some of the bold moves IKEA Canada has taken:

• We were the first Canadian retailer to only sell cordless blinds.

• We are raising awareness about the hazards of furniture tip-over in Canadian homes.

• We now only carry chests of drawers that comply with the voluntary ASTM standards for stability.

• We partner with Canada’s leading national charitable organization, Parachute, who is dedicated to preventing injuries and saving lives.

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A LOOK AHEAD TO 2018MAKE ROOM FOR LIFE

The world is changing. Life is changing. Home is changing. Urbanization and technology continue to change our lives everywhere. People are moving from the country to cities like never before.

This means new living conditions for the many people, and breaking conventions around the traditional living room, which allows us to redefine this space. For many it’s now a space to meet with friends and family, celebrate with good food and conversation, play with children, and renew physically and mindfully. The possibilities are endless!

To support this change, our stores have remodeled their living room showrooms to inspire customers with affordable and relevant home furnishing solutions to meet the unique needs of their living room space.

BEAUTIFUL POSSIBILITIES

In Fiscal Year 2018, IKEA Canada will finalize our Retail Direction for the next 10 years. At IKEA, we are clear about our vision to create a better everyday life for the many people. This vision is central to our Retail Direction and it is anchored in our inclusive and optimistic point of view on the world.

Our job is to side with the many Canadians who are increasingly time-starved, commuting and working longer hours than ever before, and in record levels of debt. In a world filled with uncertainty, expectations, and everyday pressures, we want to be a force for good to show Canadians what is possible – in their homes and in the world. The Beautiful Possibilities positioning was introduced in Fiscal Year 2018 and will be central to how we communicate with Canadians and how we invite them to participate with our brand.

A GREAT PLACE TO WORK

At IKEA, we wish to create a unique, meaningful and trusted place to work; a place to have a career. One of the many ways IKEA is caring of our co-workers is through implementing a new Employment Standards Policy. We will continue to commit to our co-workers through providing guaranteed hours, great rewards and benefits and ahead-of-time schedules, so all co-workers can plan their life in advance.

BECOMING MORE ACCESSIBLE

In Fiscal Year 2018, IKEA continues to move ahead with our ambition to double the number of stores from 12 to 24 and expand from coast to coast. We recently announced a new store in London, Ontario and construction is underway on IKEA Quebec City, which will open in summer 2018. Additionally, a new Customer Distribution Centre in Richmond, BC will further enable IKEA to have products closer to our customers, when it opens in spring 2018.

IKEA STORES

WINDFARM

COLLECTION POINTS

PICK-UP & ORDER POINTS

01 NANAIMO, BC

02 VICTORIA, BC

05 KELOWNA, BC

10 SASKATOON, SK

11 REGINA, SK

28 FREDERICTON, NB

29 BATHURST, NB

30 SAINT JOHN, NB

31 MONCTON, NB

32 CHARLOTTETOWN, PE

33 NEW GLASGOW, NS

34 SYDNEY, NS

35 ST. JOHN’S, NL

03 COQUITLAM, BC

04 RICHMOND, BC

06 EDMONTON, AB

07 CALGARY, AB

12 WINNIPEG, MB

17 NORTH YORK, ON

19 VAUGHAN, ON

18 BURLINGTON, ON

21 ETOBICOKE, ON

23 OTTAWA, ON

24 MONTREAL, QC

26 BOUCHERVILLE, QC

36 HALIFAX, NS

27 QUEBEC CITY, QC (SUMMER 2018)

14 LONDON, ON (FALL 2019)

08 DRUMHELLER, AB

09 PINCHER CREEK, AB

13 WINDSOR, ON

14 LONDON, ON

15 KITCHENER, ON

16 ST. CATHARINES, ON

22 WHITBY, ON

27 QUEBEC CITY, QC

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DISTRIBUTION CENTRE

20 MISSISSAUGA, ON

25 BROSSARD, QC

04 RICHMOND, BC (SPRING 2018)

37 BEAUHARNOIS, QC (FALL 2019)

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IKEA IN CANADA

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MEET OUR MANAGEMENT TEAM

IKEA CANADA MANAGEMENT TEAM01 Lauren MacDonald 04 Stephen Bobko 07 Liz Wilson 10 Tanya Bevington 13 Geoffrey Macdonald Marketing Manager HR Manager Deputy Retail Manager Communications Manager Deputy Chief Financial Officer

02 Niclas Karlsson-Järnkrok 05 Laura Barbisan 08 Bruno Dumas 11 Brendan Seale 14 Bilkis Zachariah Deputy Retail Manager Sales Manager Sales Manager Sustainability Manager Chief Financial Officer

03 Kathy Davey 06 Gerard Bos 09 Andreas Grill 12 Marsha Smith Communication & Customer Experience Manager Logistics Manager President Interior Design Manager

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MEET OUR STORE MANAGERS

RANDY GATT Vaughan Store Manager

JANET MCGOWAN North York Store Manager

ANNIKA LENOIR Quebec City Store Manager

SUE COULET Halifax Store Manager

SANDY EVINOU Calgary Store Manager

JULIE BELANGER Customer Support Centre Manager

ISABELLE AUCLAIR Boucherville Store Manager

ZULFIYA NURGALIEVA Ottawa Store Manager

LENA WIRMOLA Burlington Store Manager

IVANA COLATOSTI Etobicoke Store Manager

ALAIN CLOUTIER Montreal Store Manager

STEVEN FOSTER Coquitlam Store Manager

ROBINDER MAKKAR Edmonton Store Manager

JENNIFER ALLEN Winnipeg Store Manager

BRIGITTE BABIKIAN eCommerce Manager

XIAO CHEN Richmond Store Manager

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ABOUT IKEA CANADAIKEA Group is a leading home furnishing retailer with 357 stores in more than 29 countries worldwide, which are visited by 817 million people every year. IKEA Canada has 13 stores, an eCommerce virtual store, six Pick-up and order Points and 13 Collection Points. The company also announced plans to open new stores in Quebec City and London, Ontario. Last year, IKEA Canada welcomed 28 million visitors to its stores and 95 million visitors to the IKEA.ca website. Founded in 1943, IKEA’s business philosophy is to offer a wide range of products of good design and function at prices so low, the majority of people can afford them. For more information on IKEA Canada, please visit: www.IKEA.ca.