THE IKEA BRAND DIRECTION. From today and every day going forward

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1 THE IKEA BRAND DIRECTION From today and every day going forward Inter IKEA Systems B.V. 2014

2 PURPOSE This document outlines the wished IKEA Brand position for all IKEA trademark users. It is built on the IKEA vision, the IKEA business idea, The Testament of a Furniture Dealer and our defined long-term home furnishing priorities - Living with Children, Organise your Living and Small Space Living. This direction serves as a guide for all IKEA trademark users in creating a strong global brand with room for many local accents. Our ambition is to make IKEA one of the most loved and trusted brands in the world by having as many people as possible to perceive IKEA as unique and meaningful. We want people to trust IKEA by giving them a clear picture, in their hearts and minds, of what we stand for. This will be achieved by aligning our forces and acting and talking as one brand. With the IKEA Concept as a strong base, we will continue to nurture and develop the IKEA Brand on both global and local levels. All of us have the responsibility to use the content in this document when building IKEA strategies and plans. Everything we do - from developing the IKEA offer to how we interact with consumers, co-workers, business partners and other stakeholders - contributes to building the IKEA Brand.

3 OUR ROOTS A LEGACY TO HONOR AND BUILD UPON We have come a long way since Ingvar Kamprad founded IKEA in From being a small entrepreneurial company in Småland in southern Sweden, selling furniture through a mail-order catalogue, IKEA has grown to become one of the most successful home furnishing brands in the world. Reaching and touching hundreds of millions of people and influencing their view on how to live a better life at home. Early on, Ingvar Kamprad chose a different way to do business. Based on a firm belief of being independent and self-financed, he chose not to enter the stock market. Instead he set up a franchise system for IKEA, owned by a foundation. This was his way to ensure that IKEA will last and continue to grow and be prosperous for many generations to come. Peter, Jonas and Mathias succeeded their father on all the foundations and boards during 2013 and The Kamprad family does not own the IKEA Concept, including the IKEA trademark, but they are committed to do their outmost to ensure that is has a long and thriving life within the ownership structure and franchise system Ingvar Kamprad set up. With a strong vision and willingness to make a difference, we have together accomplished something extraordinary. We all learned Ingvar s way of turning problems into possibilities. With a stubborn belief that everything can always become better, we shaped a unique IKEA culture. A culture built on togetherness, which is constantly nourished by enthusiastic, down-to-earth, straightforward people who are always searching for better ways forward. Even if it sometimes means doing the opposite of others or going the wrong way. By asking why? we have dared to try new things, which led to IKEA earning a reputation of being surprising and different. We have always acted as a modern brand, in tune with society and people's lives. From our early days, resourcefulness and cost-consciousness have been deeply rooted in our soul; low costs being the most important factor for creating low prices. Our firm belief in being cost-conscious and careful with resources together with our attitude to never accept the impossible has driven us to challenge and sometimes change the industry in which we operate. Yes, we have been successful. Not only in sales and expansion. We have been successful in reaching people and making IKEA known and loved by many people across the world. We have been inspired by people's everyday lives at home and

4 people have in return been inspired by our ideas, our solutions, our products, our catalogue, our website and our stores. But as we all know, most things still remain to be done. And there are so many possibilities for IKEA in the future! We are still small in most markets. There are so many more people to reach. Especially in markets we have not had the chance to get to know yet. It is our obligation to expand. Our past success is our legacy to honour and build upon. The challenges ahead might be complex, but let s not make them complicated! Our way forward is to keep on being a modern and optimistic company and work together to fulfil our vision: To create a better everyday life for the many people. The IKEA vision is more relevant today than ever before. SWEDEN AND IKEA OUR HERITAGE DEFINES US During the 19th century there was a movement amongst Swedish artists, authors and architects. With a strong interest for life at home and functionalism, they developed a clear standpoint that function was just as important as beauty. New home furnishing ideas based on simplicity flourished that form follows function and that children have the right to a home environment where they can develop and play. Ideas that have also inspired IKEA in what we believe create a better everyday life at home. A lot of change took place in Sweden during the 20th century. The strong social development during this period, such as democratisation, women s liberation and improvement in living conditions gave IKEA a good starting point. These developments in Swedish society shaped IKEA to be practical, informal and inclusive in how we interact with consumers, partners and co-workers. The fact that Ingvar Kamprad grew up in Småland, where people are selfreliant, creative, stubborn and thrifty, has shaped how we look upon things and nurtured our values. Sweden is often in the forefront in areas such as technology, safety, arts, science and sustainable solutions. The idea of equality between people has formed the Swedish culture to be open-minded, inclusive, curious and welcoming diversity - knowing that different views enrich us, make us wiser and spark creativity and innovation. In Sweden, everyone is expected to express his or her opinion and to work together to find a common agreement for everyone to follow. Values that the IKEA world embraces whole-heartedly.

5 THE WORLD AND IKEA THE CONSTANT CHANGE IN SOCIETY CREATES ROOM AND NEED FOR OUR DEVELOPMENT The world is in constant change. Our global society develops at a tremendous and ever-increasing speed. Everyone influences each other, no matter geographical distances. Something happens somewhere and the world knows it seconds later. It s a new everyday reality. Everyday life is becoming more connected and complex. More people move to bigger cities and live in smaller spaces. The demographic structures in society are changing. We live longer and fewer children are being born. Young people are more educated and move often. The shifts in the global economy influence the global business climate and also put constraints on people s private economy. The digital transformation of society is changing people's behaviours - both socially and professionally. Through social media,consumers are more in charge - always evaluating and communicating a brands credibility, services and products. The awareness of living a more sustainable and healthy life is making everyone expect more value for less. Having low prices with a meaning is more important than ever. But as Ingvar always has said: No challenge is so difficult that it can't be turned into a wonderful opportunity! The ever-changing society is our biggest opportunity. The IKEA Brand is a strong foundation to build upon. While we constantly act to change things for the better, let's not forget to keep on doing the things that we are appreciated for. People salute us for having low prices and for inspiring them with functional and creative home furnishing solutions. People enjoy a day out for the family in our stores and that shopping at IKEA means you'll get the possibility to take your furniture and accessories home the same day. However, we also have crucial areas that constantly need our attention and action if we want to continue to be successful and reach our wished position. One of the most important areas is the perception of our product quality, where many people don t trust IKEA. The importance of quality is increasing and overarching more dimensions than durability, such as sustainability, shopping experience, design, etc.

6 Time and convenience are factors that people increasingly evaluate when considering IKEA for their home furnishing. We need to provide more people with a shopping experience that is less stressful and time consuming and more joyful and rewarding. We want to create long-lasting relationships with our customers as well as being a great destination for a day out with family and friends. Self-choice and self-serve will always be at the core of the IKEA Concept. But people are questioning if we have relevant and good enough services to offer, and if so, if they are reliable. The IKEA Brand is perceived as not being surprising anymore, lacking news, vitality and a twinkle in the eye. People don't know if they can trust that IKEA operations take social and environmental responsibility, treating co-workers and suppliers in a good way. The IKEA Brand has become fragmented and we are not always clear on what we stand for. Being clear on our purpose and our beliefs is a prerequisite for people to trust us. Considerable challenges, but not impossible to overcome! Our job going forward is to continue to do what we're good at, and develop the areas where we need to be better. Only then will we be able to gain further trust for the IKEA Brand. PEOPLE'S LIFE AT HOME THE SOURCE OF OUR BUSINESS We all share the same basic human needs no matter where and how we live. Like a good night s sleep, cooking and eating a meal, or just being together. The source of the IKEA business lies in people's everyday life at home. People will always have needs and dreams about a functional and beautiful home. We have the possibilities to enable people to make their aspirations a reality. Our high level of knowledge about people's different living situations and living conditions is unique. It's how we combine knowledge with a genuine interest in people and use insights about life at home that will give us the opportunity to create relevant and unique home furnishing. Everyday life is constantly changing. New cultures, new traditions, new needs and dreams will keep our curiosity going and nurture our passion for people's lives at home. To be relevant, we must acknowledge the similarities and differences in size of living spaces, affordability and cultures.

7 The IKEA Brand stands for making everyday life at home better through functional, beautiful, sustainable and affordable home furnishings. Because when life at home is enjoyable, affordable and runs smoothly, life itself will be better too. We make use of our great assets and create even better solutions: to organise your living. to make the most of small spaces. And to support the changes in people's living situations, especially for those living with children. Because we want many more people to have the possibility to create the home they dream of together with IKEA. THE POWER OF EVERYDAY Special moments come and go but it is in the everyday that life happens. Everyone can relate to the everyday, no matter where and how you live. That's why we believe that the everyday is the most important and exciting day of the week. The everyday moments and even in the everyday frustrations is where we find our inspiration. It s in the everyday that the IKEA Concept is at its best, where we can show our full potential as a curious problem solver and be the enabler for a better everyday life at home. THE IKEA BRAND POSITION: IKEA CREATES A BETTER EVERYDAY LIFE FOR THE MANY PEOPLE This is our vision and also the brand position we wish and aim to reach. We have a unique and meaningful vision that is more valid than ever before. The vision describes the position we can claim in the hearts and minds of more and more of the many, individual, people. We will stand up for who we are and what we believe in. We will create an overall picture of IKEA that is globally consistent while allowing for local relevance. All of us have an important part to play in simplifying the complex world and finding the obvious solutions for things that seem complicated. Being in tune with society demands that we listen, get to know and engage in people.

8 To keep us on the right track, there are five roads we all need to follow. By believing and acting on all five of them, we will together succeed in fulfilling the IKEA vision and creating a strong brand position. FIVE ROADS FORWARD 1. DEMOCRATIC DESIGN - FIVE DIMENSIONS THAT MAKE US UNIQUE People are expecting more value for less. We offer a wide range of well-designed furniture and home furnishings that are relevant and appeal to the many different individuals. The IKEA range has its own profile, reflecting our way of thinking and is as simple and straightforward as we are ourselves. Our biggest advantage in design and product development is how we combine our unique understanding about people s needs at home with our knowledge about how to use new and old techniques in production. Through close cooperation with suppliers and by designing on the factory floor we ensure that every IKEA product is affordable, well made, functional, hardwearing and gives long-term enjoyment. While we constantly work to amplify the value of our offer, we always keep in mind that no effort will be spared to ensure that our prices are the lowest on every market. The IKEA business idea is manifested through Democratic Design. By creating products that meet all five dimensions of Democratic Design we will be unique - having a product range our customers and we love and feel proud of. Good function makes everyday life easier and more enjoyable. Good form adds beauty to a purposeful function. Good quality means that our products will last. And sustainability is how we take full responsibility across the whole value chain and provide the many individual people with solutions that enable living a more sustainable life at home. The low price is what makes IKEA products accessible to the many people. The combination of all five dimensions is what makes us truly unique. Only the IKEA Concept and our co-workers can deliver that. 2. INSPIRING HOME FURNISHING SOLUTIONS - FOR THE MANY DIFFERENT INDIVIDUALS All homes are full of possibilities. No matter people's living situations and living conditions, there is always room for better home furnishing solutions. Life at home is not the same everywhere. That is why we need to create home furnishing that is relevant to different markets in terms of function, size, finish/colours and price.

9 We want IKEA to be known and appreciated for inspiration and ideas that reflect an easier, happier, friendlier and a more natural and unconstrained way of life. We want to inspire people to show their own personalities at home and how it can be accomplished in an affordable way using the IKEA product range. We will create and share ideas on how to live a more sustainable life at home. Our unique home furnishing competence and insights about the many different ways of living is a great asset. By being curious and understanding the differences in living spaces, affordability and interest in home furnishing, we will have greater insights about people's aspirations, needs and dreams. And greater insights will fuel our creativity and enable us to show people endless possibilities of what their home can be. Through our solutions, we will manifest how home furnishing is an enabler in making everyday life much better. 3. ACCESSIBILITY - A RICHER IKEA EXPERIENCE FOR MORE PEOPLE Consumers want to shop in a way that suits them. While continuing to nurture the important role of IKEA stores as a source of inspiration that offers instant gratification and an attractive destination for a day out for family and friends, we embrace the change influenced by urbanisation, technology, sustainability and time available to make it easier for people to engage with IKEA whenever and wherever they choose. We want the IKEA Concept to be more attractive to more people, and build positive and long-lasting relationships with all our customers. Through a joyful and inspirational shopping experience, we make home furnishing with everything under one roof more accessible both in our stores and online. This also means having relevant and reliable services, as an option to do-ityourself, as well as having knowledgeable staff available when needed. We want to be the brand of choice that provides people with, not only a great offer, but also a richer and more rewarding experience. 4. GREAT PEOPLE CREATING A POSITIVE IMPACT We want to be a force for positive change. We have the possibility to make a significant and lasting impact both today and for future generations. This fantastic opportunity and responsibility will increase as we continue to grow. We will inspire more and more people to live sustainably at home, saving money and feeling good about making a positive difference in their own lives. We will also enable people to choose products that are sourced with care and respect for

10 people and the environment. By ensuring we take responsibility throughout the entire value chain, we can help create a better life for people and communities, acting in the best interest of children and supporting human rights. Sustainability is part of our everyday work and should be integrated into everything we do. Our strength comes from down-to-earth, straightforward people who dare to take actions for developing the IKEA business and themselves. We embrace diversity knowing that different experiences and backgrounds will collectively make us wiser and stronger. By always encouraging consumers, customers, coworkers and business partners to participate and engage in what we do, we will become not only meaningful and trusted, but better! Our success lies in great collaboration both within the IKEA world and together with others. We share our successes and failures as openly and transparently as we possibly can. And by being humble, simple and authentic in all our actions we will earn trust from the many people. 5. THE IKEA CULTURE AND VALUES - OUR WAY TO CONNECT Consumers choose not only the best products and the best prices. They choose companies and brands whose values they connect with. The IKEA values are rooted in humanism, common sense and simplicity. By living our values and sharing them openly, we invite customers and stakeholders to join and feel part of our progressive community. As always, we act with fairness and support in an honest and humble way. Our values and personality bring an emotional richness to the IKEA Brand and are reflected in our tone of voice. We constantly need to nurture our unique culture and be true to who we are, what we stand for and what we believe in. We continue to develop as a modern brand that stands for innovation, inclusiveness and authenticity - with a strong connection to Sweden. A brand that dares to be different, challenges conventions, strives for simplicity and always finds better ways forward. TOWARDS A GLORIOUS FUTURE - TOGETHER! All our actions, all our communication, every meeting with co-workers, consumers, customers, business partners and other stakeholders contribute to positioning the IKEA Brand. We will only make this happen by all IKEA trademark users working together across units, companies and countries

11 It's when everyone participates and makes meaningful contributions that we will reach our wished IKEA Brand position in people's minds and hearts. Our journey forward is to always strive for fulfilling the IKEA vision. To build on our strengths and to change where we are weak. By being a restless doer with a happy rebel heart and a straightforward tone of voice we dare to be different. We always bring forward what we believe in and stand up for who we are. With determination, humbleness and care, we question everything we do today that does not support how we want to be perceived. When we are inspired by what we do and say, we will inspire others too. It starts with us. As Ingvar always has said: Most things remains to be done. A glorious future!

12 Inter IKEA Systems B.V. 2014

Inter IKEA systems B.V ДОБРЕ ДОШЛИ VÄLKOMMEN WELCOME , Sofia, Bulgaria

Inter IKEA systems B.V ДОБРЕ ДОШЛИ VÄLKOMMEN WELCOME , Sofia, Bulgaria Inter IKEA systems B.V. 2012 ДОБРЕ ДОШЛИ VÄLKOMMEN WELCOME 04.02.2016, Sofia, Bulgaria Inter IKEA Systems B.V. 2015 What will we share today? Purchasing Operations area South East Europe Taskforce Bulgaria