Inter IKEA 
Holding B.V.      
Annual Report 
FY23

Inter IKEA Holding B.V. Annual report FY23 
Page 2 of 58 
 
 
 
 
 
Contents 
 
REPORT FROM THE MANAGEMENT BOARD ........................................................................................ 3 
CONSOLIDATED BALANCE SHEET AS AT 31 AUGUST 2023 ............................................................... 14 
CONSOLIDATED PROFIT AND LOSS ACCOUNT FY23 ......................................................................... 15 
CONSOLIDATED CASH FLOW STATEMENT FY23 ................................................................................ 16 
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME FY23 ................................................. 17 
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS .............................................................. 18 
COMPANY BALANCE SHEET AS AT 31 AUGUST 2023 ........................................................................ 46 
COMPANY PROFIT AND LOSS ACCOUNT FY23 .................................................................................. 46 
NOTES TO COMPANY FINANCIAL STATEMENTS ............................................................................... 47 
OTHER INFORMATION .......................................................................................................................... 53

Inter IKEA Holding B.V. Annual report FY23 
Page 3 of 58 
 
 
 
 
REPORT FROM THE MANAGEMENT BOARD 
  
The Management Board of Inter IKEA Holding B.V. presents its Annual Report for the 12-month 
period ended 31 August 2023.  
 
General  
  
Inter IKEA Group  
Inter IKEA Holding B.V. (‘the Company’) is the ultimate parent company of the Inter IKEA Group 
(‘the Group’). The Company is fully owned and controlled by Inter IKEA Foundation. During the 
year, a restructuring took place, through which ownership and control of the Company was 
transferred from Interogo Foundation and Interogo Holding AG to Inter IKEA Foundation. Inter 
IKEA Foundation is at balance sheet date the Company’s 100% shareholder and ultimate owner. 
 
The Group consists of three core businesses: Franchise, Range and Supply. The three core 
businesses work together with franchisees and suppliers to co-create an even better IKEA offer 
and franchise system. The aim is to provide franchisees with best possible conditions for 
implementing and operating the IKEA Concept, and to create a strong platform for future 
expansion and growth. 
  
As at 31 August 2023, 12 franchisees operate more than 600 IKEA customer meeting points, 
including traditional stores, small stores and pick-up points, plus several test formats. 
Franchisees implement the IKEA Concept by marketing and selling the IKEA product range. With 
the exception of the IKEA Delft store in the Netherlands, all IKEA customer meeting points operate 
under franchise agreements with Inter IKEA Systems B.V. Each franchisee has the responsibility 
to run, manage and develop its local business. All franchisees are independent from and 
unrelated to Inter IKEA Group. 
  
Franchise  
Franchise includes Inter IKEA Systems B.V. – owner of the IKEA Concept and the IKEA franchisor – 
and its related businesses. Inter IKEA Systems B.V. continuously develops the IKEA Concept to 
ensure its successful implementation in new and existing markets. This enables IKEA to remain 
forward-looking in areas such as brand development, retail methods, sustainability, market 
potential and expansion. Franchise also includes IKEA Marketing & Communication AB, a 
company that creates and produces IKEA communication content for customers and other IKEA 
organisations. 
  
Range  
Range includes IKEA of Sweden AB and related businesses. Range works under assignments from 
Inter IKEA Systems B.V. and is mainly responsible for developing and designing the overall IKEA 
product range, including home furnishings and food. 
  
Supply 
Supply includes IKEA Supply AG, IKEA Industry AB, IKEA Components AB and related businesses. 
Inter IKEA Systems B.V. assigns IKEA Supply AG to source, sell and distribute IKEA products to IKEA 
franchisees. The majority of IKEA products (approximately 90%) is sourced from external 
suppliers across the globe. The operational relationships with these suppliers are operated 
through purchasing offices, located close to where the suppliers are. IKEA Supply AG manages 
and operates the IKEA supply chain together with its wholesale subsidiaries and external business

Inter IKEA Holding B.V. Annual report FY23 
Page 4 of 58 
 
 
 
 
partners, such as transporters, warehouse providers and custom brokers. Wholesale subsidiaries 
buy IKEA products from internal and external suppliers and sell them to IKEA franchisees. 
 
IKEA Industry is a strategic IKEA manufacturer that produces IKEA home furnishing products and 
develops unique IKEA capabilities and capacities in relevant parts of the value chain (e.g. material 
and manufacturing). IKEA Industry produces approximately 10% of the total IKEA range, with its 
main focus on wood-based furniture. Its operations are conducted through 33 production units 
that include forestry, sawmills, as well as production of board material, wood components and 
furniture. 
 
IKEA Components develops, sources, packs and supplies components such as screws and wooden 
dowels that are used to assemble IKEA furniture. 
  
Governance structure  
The Group’s governance is also organised through the three core businesses with the risk 
management structures, internal control and compliance tailored to their specific business needs 
and characteristics. The Group’s governance structure is based on two main considerations: to 
secure the growth and development opportunities of the IKEA Brand and the IKEA Concept, and 
to guarantee the Group’s independence and ability to maintain a long-term perspective.  The 
legal structure follows along the lines of governance with separate parent companies for each of 
the core businesses. The Company has two main governing bodies: the Management Board and 
the Supervisory Board.  
 
 
Financial information  
These financial statements cover the 12-month period from 1 September 2022 to 31 August 2023 
(‘FY23’). Comparative figures reflect the 12-month period from 1 September 2021 to 31 August 
2022 (‘FY22’). 
  
Profit and loss account  
Total operating income in FY23 amounts to EUR 29.1 billion (+5.4% compared to FY22), mainly 
generated through charged franchise fees and sales of goods to IKEA franchisees. Operating 
income development is directly linked to the retail sales of all IKEA franchisees worldwide since 
these sales drive the Group’s wholesale activities and form the basis for the franchise fees. 
 
In FY23, IKEA retail operations were  much less impacted by measures related to the Corona virus 
and most IKEA stores remained open without (severe) restrictions. Nonetheless, while sales in 
value increased, sales in volumes and number of products have not grown. Higher cost of living 
due to inflation and energy prices leads to thinner wallets, which means fewer people can afford 
to shop at IKEA. 
 
Most of our operating expenses comprise of cost of raw materials and consumables relating to 
the manufacturing and procurement of finished goods. Cost of raw materials and consumables 
also include transport, storage and handling cost. In FY23 – contrary to FY21 and FY22 – the 
inflation of these costs has stabilised and a downward trend is visible towards the end of the 
financial year. This resulted in a moderate increase of cost of raw materials and consumables 
(+1.8% cost increase compared to FY22), whereas in FY22, these costs rose with 10.7% compared 
to the year before.  Following this trend, in FY23, the Group has started lowering sales prices to 
IKEA franchisees, which should positively affect affordability for retail customers. Also the 
availability of products for our customers improved over the financial year.

Inter IKEA Holding B.V. Annual report FY23 
Page 5 of 58 
 
 
 
 
The remaining operating expenses include salary cost, utilities, fixed asset depreciation, rent and 
other costs related to day-to-day operations. Not considering the impairments recorded in FY22 
– mostly related to closing down operations in Russia and Belarus – these expenses have 
remained at the same level in FY23. Recruitment stops and organisational restructurings have 
supported in stabilising salary cost and other operating cost. During FY23, the Group’s co-worker 
base (measured in average FTE) reduced from 27,331 in FY22 to 24,944 in FY23. The reduction is 
mostly visible in IKEA Industry, following divestment of the Russian activities.  
 
In February 2022, subsequent to the Russian invasion into Ukraine, the international community 
imposed economic sanctions (with the aim to stop most business interactions with Russia). In 
June 2022, Inter IKEA Group announced to scale down all business and operations in Russia and 
Belarus. This resulted in all import and export to and from Russia and Belarus being stopped and 
the two purchasing and logistics offices in Moscow and Minsk closed permanently. In FY23, IKEA 
Industry divested its 4 Russian production units, concluding this process at the end of March 2023. 
  
As a result of the above, tangible fixed assets, supplier financing loans and inventories relating 
to the Russian operations were already impaired in FY22 and costs were provided for. In FY23, the 
sale of the Russian factories leads to a gain, consisting of multiple items such as the sale proceeds 
offset by closing costs and large currency effects. This gain should be viewed in combination with 
the impairments and costs recorded in FY22, resulting in an accumulated net loss.  
 
Financial income comprises income from hedging activities and favourable currency translation 
effects. Financial expenses comprise interest expenses connected to long- and short-term loans 
as well as unfavourable currency translation effects. 
 
The effective tax rate for FY23 is 15.8%, following the nominal tax rates in the Netherlands, 
Sweden and Switzerland where the majority of the Group’s businesses are located. The effective 
tax rate decreased by 7.9% compared to the previous year, mainly due to our Supply business 
returning to their normal profit level. The effective tax rate is now back in line with the effective 
tax rate in FY21 of 16.0%. 
  
In December 2017, the European Commission opened a formal investigation, with their Opening 
Decision published on 6 April 2018 which was complemented by their Decision published on 10 
July 2020, to examine whether decisions by the tax authorities in The Netherlands with regard to 
the corporate income tax paid by one of our subsidiaries, Inter IKEA Systems B.V., comply with 
European Union rules on state aid. The Company co-operates and responds to questions which 
the European Commission has in relation to this investigation.   
  
At this moment, although management considers the risk of a cash out flow unlikely, it is not 
possible to assess a financial impact, if any, of the outcome of this EC investigation. The 
aforementioned outcome is not expected to have a material adverse impact on the financial 
position of The Company.  The Company is actively monitoring and addressing these 
developments and believes that its corporate income tax position is appropriately reflected in the 
financial statements.  
  
Net profit for the year amounts to EUR 1.6 billion (FY22: EUR 0.7 billion). The increase versus 
previous year is primarily the result of the high purchasing and transportation costs in FY22 which 
were absorbed in our financial results at that time to limit sales price increases as much as 
possible. The FY23 net profit brings us back to profit levels we have had in the years prior to FY22.

Inter IKEA Holding B.V. Annual report FY23 
Page 6 of 58 
 
 
 
 
Balance sheet  
Most of the Group’s balance sheet positions as per 31 August 2023 have not changed significantly 
when compared to 31 August 2022. The largest impact on balance sheet positions resulted from 
the restructuring through which ownership and control of the Company was transferred from 
Interogo Foundation and Interogo Holding AG to Inter IKEA Foundation on 31 August 2023. 
Subsequent to this transfer of ownership and control, Inter IKEA Foundation performed a capital 
contribution to the Company of EUR 8.3 billion. This capital contribution consisted of the 
outstanding loan receivable on Inter IKEA Systems B.V. (EUR 5.4 billion) with the remaining 
amount received in cash (EUR 2.8 billion). 
 
Fixed assets primarily comprise the IKEA Proprietary Rights (“IP Rights”), relating to the IKEA 
trademark, protection rights, intellectual property rights and the rights to the IKEA catalogue, 
with a book value of EUR 9.1 billion.  
  
The Group owns several property buildings, offices and distribution centres across the world, 
including the IKEA Delft store. Additionally, the Group owns 33 IKEA furniture production units, 
mostly located in Europe, as well as two factories that produce furniture components (screws, 
plugs, etc.). In FY23, investments were made in extending or improving existing production units, 
and a new distribution centre in South China was taken into operation. The process of finding 
new ownership for the 4 Russian production units was finalised end of March 2023, when these 
assets were divested. 
 
Inventories mostly consist of IKEA products located in, or underway to distribution centres. 
Inventory levels were particularly low during FY20 and FY21 as transport constraints in 
combination with high customer demand posed a challenge in replenishing inventory to a 
desired level. During FY22, the Group’s inventory levels increased due to continued supply chain 
challenges and efforts made to secure a better availability of products for our customers. This 
increase in combination with high purchasing costs led to a large increase in value in prior year. 
Inventory values at the FY23 balance sheet date have come down following corrective measures 
and strong focus on working capital management. 
 
Receivables mainly relate to IKEA retailers for franchise fees and IKEA products sold and invoiced. 
In prior years, the Group held receivables on related parties (Interogo Holding AG). Due to the 
shareholder restructuring as described above, these receivables are now classified as third party 
receivables. 
  
Group equity increased from EUR 9.8 billion to EUR 17.8 billion. Main movements during the year 
were a EUR 1.9 billion dividend distribution to our former shareholder (Interogo Holding AG), a 
capital contribution of EUR 8.3 billion from our new shareholder (Inter IKEA Foundation), and net 
profit addition of EUR 1.6 billion. The Group’s equity ratio has improved from 40% in FY22 to 77% 
in FY23. 
  
Provisions are recognized for deferred taxes, legal disputes, product related claims, and 
organisational restructuring costs. In prior years, the non-current liabilities comprised of a EUR 
5.4 billion loan received from Interogo Holding AG. During the shareholder restructuring, this 
loan was injected by means of a capital contribution from Inter IKEA Foundation which reduced 
the non-current liabilities almost completely to nil. Current liabilities consist of short-term loans, 
trade payables and tax payables.

Inter IKEA Holding B.V. Annual report FY23 
Page 7 of 58 
 
 
 
 
Cash flows 
The decrease in inventory levels in combination with the regular profitability of our business has 
led to a positive cash flow from operating activities during FY23. This development has reduced 
the need for short-term financing considerably. The cash generated by operating activities was 
mainly used for investments into tangible fixed assets, and to distribute dividends to Interogo 
Holding AG. 
 
The Group monitors its cash position by using a cash flow forecast model to ensure the cash 
position is always sufficient to meet the financial obligations towards staff members, creditors, 
tax authorities and other third parties. 
 
 
Risk management  
 
Approach  
The Group is committed to protect the IKEA Concept and Brand, co-workers, visitors, customers, 
business partners and assets. Steering documents, frameworks, tools and working methods are 
in place, embedding risk management and compliance activities into day-to-day operations:  
 
• 
IKEA forever parts (vision, business idea, culture & values) are the foundation. The Group 
Code of Conduct and Policy House define Group-wide business requirements.  
• 
Business requirements are further specified in core business steering documents and 
implemented in day-to-day operations as suitable in local regulatory contexts.   
• 
Requirements imposed on IKEA franchisees and business partners are reflected in 
corresponding agreements, IConduct and IWAY.  
• 
A common risk management methodology is used to identify and assess key risks, 
resulting in risk registers and action plans.   
• 
Key internal control and compliance requirements are assessed across three lines of 
defence, using self-assessments, compliance reviews and internal audits. These 
requirements are also directed at preventing and detecting fraud. 
• 
A Raising Concern Line, incident- and crisis management processes are designed to 
detect and manage issues as they occur, and evaluations are performed to enable 
learning and continuous improvement.   
  
The Ethics Committee supervises and advises on the response to critical ethical dilemmas and 
handling of (potential) critical breaches of the IKEA business requirements. Legal entity Boards, 
the Inter IKEA Group Management Team (incl. Management Board) and the Audit Committee 
keep oversight and periodically discuss consolidated risk registers and compliance status. 
 
Key risks  
The Group’s overall risk appetite is low. In areas such as product quality & safety, business ethics, 
health and safety & security, the risk appetite is very low. Key risks are categorised in the 
categories described below. Detailed risk registers are in place to describe, prioritise and monitor 
the risks on core business and group levels. The risks are mitigated by a variety of measures as 
described under “Approach” above. 
  
Business transformation  
The Group is on a journey to transform the business in an omnichannel reality. This 
transformation will enable us to meet changing customer expectations and digital development, 
which is ever more important in an increasingly challenging environment, with expanding 
multichannel 
offerings, 
pure 
online 
players, 
price 
competitiveness 
and 
economic

Inter IKEA Holding B.V. Annual report FY23 
Page 8 of 58 
 
 
 
 
slowdown. Affordability and volume growth are important aspects of the Group’s operating 
business model in responding to these challenges. 
  
Wellbeing & co-worker engagement  
Co-worker wellbeing, engagement and leadership has been heavily challenged and stretched in 
the past few years due to high inflation, organisational changes and operational supply chain 
challenges. During FY23, organisational restructurings were announced and partly executed with 
the aim to reduce management layers and to create a better and more focused franchise system. 
This has dominated the agenda, putting pressure on many resources as we continue to drive 
business performance and transformation together.  
 
Geopolitics, supply chain disruptions & resource scarcity  
The pandemic, the war in Ukraine, resource scarcity, and increasing cost of raw materials have 
severely dominated and disrupted our supply chain during the past few years. From a risk 
perspective, the external environment stabilised at an elevated risk level with existing crises and 
geopolitical uncertainties remaining to pose serious threats to our business. Additionally, social 
and regulatory scrutiny of human rights and ethical sourcing across the supply chain reach new 
levels.  All examples of risks that require collaboration efforts to prioritise and enable agility, 
sustainability, traceability and resilience across the value chain.  
 
Sustainability 
The IKEA sustainability strategy is built around three global sustainability challenges: climate 
change, workplace inequality and unsustainable consumption. The potential effects of these 
challenges are becoming increasingly visible in our business operations, for example through 
resource scarcity.  
 
There is also an increasing (legal) demand for companies to demonstrate their environmental 
and social contributions in a more comparable and quantifiable way. The EU has issued a new 
Corporate Sustainability Reporting Directive (‘CSRD’) that requires companies to publicly report 
on their ESG goals and impact, and to disclose the financial risks of climate change. CSRD will be 
applicable to the Group as from FY26. With the world facing increasing environmental challenges, 
growing public opinion expect that a company’s success should be steered towards positive 
outcomes for people and planet, rather than financial growth and profits only. Failing to meet the 
requirements of laws, policies and treaties such as the Paris Agreement primarily poses the risk 
of brand and reputation damage. In some cases non-compliance can lead to business restrictions 
and financial exposures.  
 
More information around these topics is included in the IKEA Sustainability Report and the IKEA 
Climate Report. 
  
Digital, information security & data privacy  
Adoption of new (digital) ways of working accelerated quickly during the past few years, such as 
the use of new technologies in our range development, more digital interaction and information 
sharing with customers and suppliers in an omnichannel reality, and more remote working 
between co-workers. At the same time, cybersecurity threats continue evolving; lower barriers to 
entry for cyberthreat actors and more aggressive attack methods are all aggravating the risk. 
Protecting the business is a complex challenge with many technical, legal, organisational 
dimensions that require continuous focus. We are on a journey to transform our digital 
capabilities by making significant IT investments and embracing the opportunities from data and 
technology while continuously working on improving the way we protect and secure data.

Inter IKEA Holding B.V. Annual report FY23 
Page 9 of 58 
 
 
 
 
Business ethics, safety & security and regulatory compliance  
The Group operates in an international environment where practices vary in different local 
settings and, therefore, it is important to conduct business in an ethical manner in accordance 
with our code of conduct. Product safety is a top priority and an important basis to build customer 
trust. We are committed to sustainable and safe home furnishing and food products for our 
customers, safe and secure working environments for our co-workers across the value chain, and 
compliance with all regulatory requirements in any of our markets. In close cooperation with our 
franchisees and suppliers, the Group has clear processes in place to guarantee compliance with 
regulatory requirements in all markets. Despite having the highest standards we recognise the 
inherent risk to a breach in any of the above.  
 
Finance: Reporting & compliance risks  
The Group faces financial (reporting & compliance) risks, such as foreign currency exchange, 
commodity price increases, credit and tax risks. Increased attention on taxation of multinational 
companies is addressed through our Group-wide tax control framework, simplifying the Group 
structure and keeping tax, including transfer pricing and transparency high on the Group’s 
agenda. The resilience of our financial operations and controls are being stress-tested in times of 
supply chain disruptions, pandemic and transformation, further complicated by ever increasing 
regulations. It is critical to continue to invest in sustainable financial infrastructures and 
capabilities while staying focused on delivery and control of running business. For more details 
on the risks regarding financial instruments, we refer to section 15 of the financial statements.  
 
 
Sustainability 
  
People & Planet Positive strategy  
The IKEA sustainability agenda is described in the sustainability strategy “People & Planet 
Positive”. The strategy includes sustainability ambitions and commitments leading up to 2030, 
addressing the entire IKEA franchise system and value chain. 
  
The IKEA sustainability strategy secures a common sustainability agenda for all stakeholders in 
the IKEA value chain with a long-term perspective on the business. Profitability and responsibility 
are not opposing forces, on the contrary, they are interdependent. Long-term profitability can 
only be ensured by acting in a way that creates positive impact and trust among all stakeholders.  
  
The People & Planet Positive strategy provides a common framework for all trademark users and 
units to develop and integrate sustainability tactics and actions into their own business plans, but 
gives flexibility for local, market relevant approaches and solutions. Progress on the People & 
Planet Positive strategy is communicated through the IKEA Sustainability Report and a separate 
IKEA Climate Report.  
  
Suppliers  
The Group has a responsibility to secure good social, environmental and working conditions for 
the many people in the IKEA supply chain. The supplier code of conduct IWAY sets out our 
minimum requirements on environmental, social and working conditions. It is a starting point for 
developing shared values and expectations with our suppliers. Since its inception in 2000, IWAY 
has been regularly updated to address emerging social and environmental risks. IWAY entails a 
set of requirements applicable to every supplier. IKEA suppliers are responsible for 
communicating the content of the IKEA Supplier code of conduct to their employees and sub-
suppliers and ensuring that all required measures are implemented at their own operations.

Inter IKEA Holding B.V. Annual report FY23 
Page 10 of 58 
 
 
 
 
Co-workers  
With the base of IKEA values and leadership, together with compensation and benefits, co-
workers are provided with a safe working environment. The Inter IKEA Group code of conduct 
applies to all co-workers within the Group and can be found on our website.  
 
The Group has presence in many different countries. Equality, inclusion and diversity increase 
our understanding of each other. That is why the Group recruits for and embraces diversity – to 
engage with co-workers of all ages, backgrounds, mind-sets and perspectives. In an environment 
of openness where everyone is important, and feels comfortable to experiment and try new ways. 
All aspects of diversity, equality and inclusion are actively pursued across the whole Group. 
At Inter IKEA Group, we have a large representation of women in our co-worker and manager 
base, as we want to be an equal, diverse, and inclusive business. Specifically, in response to the 
Dutch legislation in respect of gender diversity in corporate boards, Inter IKEA Holding B.V. and 
Inter IKEA Systems B.V. have set a target of at least 40% of the least represented gender (male or 
female) in the respective Management Boards and the Supervisory Boards by the end of 2030. 
Both companies have defined the sub-top as the managers that are part of the respective 
management teams (which include the management board members) and aim to have equal 
representation (50%) of female and male for these bodies by the end of 2030.  
In FY23, the Management Board of both companies was 100% male. The Supervisory Board of 
Inter IKEA Holding B.V. had 2 female board members out of 6 members (33%), while Inter IKEA 
Systems B.V. did not yet have a Supervisory Board in FY23. There were no changes to the board 
composition in FY23. The Inter IKEA Group management team consisted of 10 members of which 
4 are female (40%). The management team of Inter IKEA Systems B.V. had 6 female members out 
of 12 members in total (50%) in FY23.  
In general, targets are within reach while recognising the required focus on Management Board 
positions in both companies. A specific action plan has been prepared to build long-term female 
leadership succession and to map a succession pipeline. In addition, regular actions ensure the 
gender balance on other levels. 
 
Environmental issues  
No material environmental issues occurred during FY23. Especially within the production units, 
much attention is given to compliance with environmental regulations through regular 
equipment verification and condition checks, and through active air emission monitoring and 
documentation.  
 
 
Development and innovation  
The Group continues to invest significant resources to make IKEA more affordable, accessible and 
sustainable for customers everywhere with the ambition to reach and interact with 3 billion 
people. To make that happen, the Group invests in new ways to shop, more sustainable ways of 
working, and an inspiring, functional and affordable IKEA product range. 
 
Meeting the customer 
The Group works closely with IKEA franchisees to bring the IKEA retail experience closer to where 
people live, work or socialise. This means locations in large cities or metropolitan areas, and an 
omnichannel offering that meets customer needs and provides a seamless and unique customer 
experience.

Inter IKEA Holding B.V. Annual report FY23 
Page 11 of 58 
 
 
 
 
In FY23, our expansion focused on better accessibility for our customers in existing IKEA markets. 
IKEA retailers opened more than 70 customer meeting points around the world. To complement 
and improve online sales channels, a majority of these new customer meeting points were small 
format stores and plan & order points in urban areas, such as Madrid, Almeria, Rome, Surabaya, 
Bavaro, Cabo, San Francisco and Toronto. The latest addition was a small store in the centre of 
Copenhagen tailored to local needs, both in terms of better accessibility for the city’s many cyclists 
as well as changing urban consumer behaviour. Furthermore, we continue expanding into new 
markets, with preparations to open the first IKEA store in Colombia, and a groundbreaking event 
in Auckland, New Zealand, where we expect to start retail operations in late 2025. 
 
There is a strong desire among consumers to change their lifestyles for the better and the Group 
wants to make healthier and more sustainable living possible for the many people. Many IKEA 
stores have implemented the Sustainable living shop which presents solutions and services to 
make changes in lifestyle that are easy and affordable, with focus on saving energy, water and 
waste, on prolonging the life of products, and on healthy and delicious alternative food options. 
 
Range development 
IKEA product range development delivered many new products this year. Some highlights are 
described below. 
 
FY23 marked 80 years since Ingvar Kamprad founded IKEA in 1943. To celebrate 80 years of 
design, we returned to our treasure chest to rediscover customers’ favourite designs. Iconic 
products were reimagined in fresh, joyful colours and new materials using the latest production 
techniques and materials in a collection called Nytillverkad. 
 
In line with our vision to create a better everyday life for the many people, we believe a safer life 
is a better life. VIHALS chest of drawers is the first globally available product with Anchor and 
Unlock – a stability feature to help reduce the risk of furniture tip-overs and a proof point to the 
innovations journey on clothing storage furniture stability. The Anchor and Unlock feature works 
as an incentive for customers to secure their chests or dressers: only when attached to a wall the 
unlock mechanism is enabled and multiple drawers of a chest can be opened simultaneously. 
Before the furniture is anchored, only a limited number of drawers can be used at a time. To 
reduce tip-over incidents and support people to live a safer life at home, we strongly believe in 
collaboration. For this reason, we have made a patent pledge that defines the requirements 
under which other can adopt the Anchor and Unlock innovation. By making this pledge, we hope 
to encourage other furniture manufacturers to consider this approach as well. 
 
Manufacturing and distribution 
The Group is constantly looking for new ways to make production more sustainable and energy-
efficient. Almost two-thirds of the IKEA climate footprint is directly connected to the supply chain, 
including production at suppliers. 
 
In June 2021, the Group launched a programme that enables our supply partners to consume 
100% renewable electricity through bundled frame agreements or Power Purchase Agreements 
that the Group takes part in. Due to the high interest from suppliers in the pilot countries, and 
the contribution to limiting carbon footprint, the programme will be extended to suppliers in 
Czech Republic, Germany, Italy, Sweden, Turkey, Lithuania, Portugal, Romania, Slovakia, and 
Vietnam. 
 
Finding new glue solutions is one of the main approaches to reducing the IKEA climate footprint, 
and most glue consumption is used in board production. As a result of innovation and several

Inter IKEA Holding B.V. Annual report FY23 
Page 12 of 58 
 
 
 
 
years of investigation, IKEA is now switching to bio-based alternatives to reduce fossil-based glue 
usage by 40%. Switching from fossil-based to bio-based glue solutions will be a stepwise 
approach, and the goal is to have most board-producing factories in the IKEA supply chain using 
glues that have lower climate footprints by FY30. In Kazlu Ruda, Lithuania, the first IKEA Industry 
factory is now using a glue system made of technical starch from corn in large-scale production. 
Technical starch is made from industrially grown plants that are separated from the food value 
chain. In parallel, multiple trials with other glue systems are being conducted. 
 
 
Outlook for financial year FY24 
  
The clear turnaround in purchasing and transportation costs continues into FY24 and we expect 
to further reduce sales prices to IKEA franchisees, which should increase affordability for retail 
customers. The expectation is that retail sales will grow modestly in FY24, directly contributing to 
the Group’s wholesale revenues and franchise fee income. The Group will be profitable in FY24. 
 
In FY24, we expect to experience the benefits from the restructuring program as the organisation 
is now put in place and co-workers are finding their new roles and responsibilities. Even more 
focus on and prioritisation of key initiatives that create the most impact for our business is needed 
to secure delivery. 
 
During FY24, while remaining prudent and cost conscious, investments in research activities and 
development by the core businesses Franchise, Range and Supply will continue. The Group will 
finance these investments from its own funds.

Inter IKEA Holding B.V. Annual report FY23 
Page 13 of 58 
 
 
 
 
MANAGEMENT BOARD  
  
  
  
  
  
Jon Abrahamsson Ring (Chairman)  
  
  
  
  
  
Martin van Dam  
  
  
  
  
  
Henrik Elm 
 
 
 
 
 
Delft, 2 November 2023

Inter IKEA Holding B.V. Annual report FY23 
Page 14 of 58 
 
 
 
 
CONSOLIDATED BALANCE SHEET AS AT 31 AUGUST 2023 
(before profit appropriation, in millions of EUR) 
 
 
 
(See accompanying notes)

Inter IKEA Holding B.V. Annual report FY23 
Page 15 of 58 
 
 
 
 
CONSOLIDATED PROFIT AND LOSS ACCOUNT FY23 
(in millions of EUR) 
 
 
 
(See accompanying notes)  
 
 
FY23
FY22
Net turnover
29,109
                                 
27,345
                                
Change in inventory of finished goods
(152)
                                     
204
                                      
Other operating income
106
                                      
29
                                        
Total operating income (17)
29,063
                               
27,578
                               
Cost of raw materials and consumables
23,824
                                
23,404
                                
Cost of outsourced work and other external costs
239
                                      
247
                                      
Salaries and wages
999
                                      
954
                                      
Social charges
236
                                      
235
                                      
Pension expenses
98
                                        
105
                                      
Depreciation and amortisation (4,5)
460
                                      
477
                                      
Impairments of tangible and intangible fixed assets (4,5)
-
149
                                      
Other operating expenses
961
                                      
973
                                      
Total operating expenses (18)
26,817
                               
26,544
                               
Operating result
2,246
                                 
1,034
                                 
Financial income
211
                                       
250
                                      
Financial expense
511
                                       
353
                                      
Financial income and expense (19)
(300)
                                    
(103)
                                    
Result before tax
1,946
                                 
931
                                     
Income tax (20)
307
                                      
221
                                      
Net result
1,639
                       
710

Inter IKEA Holding B.V. Annual report FY23 
Page 16 of 58 
 
 
 
 
CONSOLIDATED CASH FLOW STATEMENT FY23 
(in millions of EUR) 
 
 
 
 
FY23
FY22
Operating result
2,246
                                 
1,034
                                 
Adjusted for:
- Depreciation / amortisation (4,5)
460
                                      
477
                                      
- Impairments (4,5)
-
149
                                      
- Other value adjustments (4,5)
64
                                        
-
                                           
- Changes in provisions (11)
(6)
                                         
(127)
                                     
- Changes in financial fixed assets (6)
(3)
                                         
(15)
                                       
- Changes in working capital
1,243
                                   
(2,066)
                                 
Cash flow from business operations
4,004
                                  
(548)
                                     
Interest received
93
                                        
9
                                          
Interest paid
(507)
                                     
(351)
                                     
Income tax paid
(299)
                                    
(322)
                                    
Cash flow from operating activities
3,291
                                  
(1,212)
                                 
Investments in:
- Intangible fixed assets (4)
-
(3)
                                         
- Tangible fixed assets (5)
(347)
                                     
(233)
                                    
Disposals of:
- Tangible fixed assets (5)
7
                                          
13
                                        
Issuance of debt (6)
(56)
                                       
(16)
                                       
Repayment of borrowings (6)
4
                                          
33
                                        
Cash flow from investing activities
(392)
                                    
(206)
                                    
Repayment of long term financing (13)
(27)
                                       
(556)
                                    
Disbursement of long term financing (13)
-
115
                                      
Short term financing (8,14)
(3,867)
                                 
2,882
                                  
Dividend paid (10)
(1,850)
                                  
(1,000)
                                  
Capital contribution (10)
2,846
                                  
-
                                       
Cash flows from financing activities
(2,898)
                                
1,441
                                 
Net cash flow
1
                                          
23
                                        
Exchange rate and translation differences on cash
(16)
                                       
1
                                           
Changes in cash and cash equivalents
(15)
                                       
24
                                        
Cash and cash equivalents at beginning
184
                                      
160
                                      
Cash and cash equivalents at end
169
                                      
184
                                      
Net movement in cash
(15)
                                       
24

Inter IKEA Holding B.V. Annual report FY23 
Page 17 of 58 
 
 
 
 
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME FY23 
(in millions of EUR) 
 
 
 
 
FY23
FY22
Net result
1,639
                                   
710
                                       
Change in unrealised derivatives
(109)
                                     
(25)
                                       
Remeasurements of defined benefit pensions plans
(6)
                                         
7
                                           
Exchange rate differences
(97)
                                       
38
                                        
Realized exchange rate results
38
                                        
Other
(4)
                                         
3
                                          
Total comprehensive income
1,461
                                 
733

Inter IKEA Holding B.V. Annual report FY23 
Page 18 of 58 
 
 
 
 
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS 
 
1. 
CORPORATE INFORMATION 
 
Inter IKEA Holding B.V. (‘the Company’), was incorporated on 30 September 1992, is a private 
limited liability company under Dutch law and is registered as a financial holding under number 
27163852 in the trade register and has its corporate seat at Olof Palmestraat 1 in Delft. Inter IKEA 
Holding B.V. is the ultimate parent of a group of companies that together form the Inter IKEA 
Group (‘the Group’). 
 
On 31 August 2023, ownership and control of the Company was transferred from Interogo 
Foundation and Interogo Holding AG to Inter IKEA Foundation. The impact of this transfer of 
ownership and control on the Group’s financial statements have been disclosed in note 13 of the 
consolidated financial statements and in note 5 of the Company financial statements. 
 
The Company has issued 1 class A share and 125 class B shares. All shares are held by Inter IKEA 
Foundation as the 100% shareholder and ultimate owner. Shares entitle Inter IKEA Foundation to 
voting rights in the General Meeting as well as full rights to the distributable profits and reserves.   
 
These financial statements cover the 12-month period which ended at 31 August 2023 (‘FY23’). 
Comparative figures reflect the 12-month period which ended at 31 August 2022 (‘FY22’). 
 
 
2. 
BASIS OF PREPARATION 
 
Both the consolidated financial statements and the company financial statements have been 
prepared in accordance with Title 9, Book 2 of the Netherlands Civil Code. The accounting policies 
applied for measurement of assets and liabilities and the determination of results are based on 
the historical cost convention, unless otherwise stated in the further accounting principles. 
 
Application of Section 402, Book 2 of the Dutch Civil Code 
The Company’s financial information is included in the consolidated financial statements. For this 
reason, in accordance with Section 402, Book 2 of the Netherlands Civil Code, the separate profit 
and loss account of the Company exclusively states the share of the result of participating 
interests after tax and the other results after tax.  
 
Going Concern 
The financial statements have been prepared on the basis of the going concern assumption. 
 
 
3.  
SIGNIFICANT ACCOUNTING POLICIES  
 
General 
 
Assets and liabilities are measured at historical cost, unless otherwise stated in the further 
principles. 
 
An asset is recognised in the balance sheet when it is probable that the expected future economic 
benefits, that are attributable to the asset, will flow to the Company and the cost or value of the

Inter IKEA Holding B.V. Annual report FY23 
Page 19 of 58 
 
 
 
 
asset can be measured reliably. Assets that are not recognised in the balance sheet are 
considered as off-balance sheet assets. A liability is recognised in the balance sheet when it is 
expected that the settlement of an existing obligation will result in an outflow of resources 
embodying economic benefits and the amount of the obligation can be measured reliably. 
Provisions are included in the liabilities of the company. Liabilities that are not recognized in the 
balance sheet are considered off-balance sheet liabilities.  
 
An asset or liability that is recognised in the balance sheet, remains on the balance sheet if a 
transaction (with respect to the asset or liability) does not lead to a major change in the economic 
reality with respect to the asset or liability.  
 
An asset or liability is derecognised in the balance sheet when a transaction results in all or 
substantially all rights to economic benefits and all or substantially all of the risks related to the 
asset or liability being transferred to a third party. In such cases, the results of the transaction are 
directly recognised in the profit and loss account, taking into account any provisions related to 
the transaction. If assets are recognised of which the Company does not have the legal 
ownership, this fact will be disclosed. 
 
Functional and presentation currency 
The financial statements are presented in euros (‘EUR’), which is also the Company’s functional 
currency. All financial information in euros has been rounded to the nearest million, unless stated 
otherwise.  
 
Use of estimates 
The preparation of the financial statements requires management to form opinions and to make 
estimates and assumptions that have an impact on the application of principles and the reported 
values of assets and liabilities and of income and expenditure. Actual results may differ from 
these estimates. Estimates and the underlying assumptions are constantly assessed. Revisions to 
estimates are recognised prospectively.   
 
The following accounting policies are in the opinion of management the most critical for the 
purpose of presenting the financial position and require estimates and assumptions. 
• 
The useful life of fixed assets; 
• 
Obsolescence of stock; 
• 
Impairments; 
• 
Provisions; and 
• 
Taxation (including uncertain tax positions). 
Refer to the accounting policies of the respective balance sheet items for details on the 
assumptions made.  
 
Consolidation scope 
The consolidated financial statements include the financial information of the Company and its 
subsidiaries. Subsidiaries are participating interests in which the Company (and/or one or more 
of its subsidiaries) can exercise more than half of the voting rights in the general meeting, or can 
appoint or dismiss more than half of the managing directors or supervisory directors.  
 
Newly acquired participating interests are consolidated as from the date that decisive influence 
(control) can be exercised. Participating interests disposed of, remain included in the 
consolidation until the date of loss of this influence.

Inter IKEA Holding B.V. Annual report FY23 
Page 20 of 58 
 
 
 
 
 
For an overview of all subsidiaries included in the Group, reference is made to the listing of 
subsidiaries that has been filed by the Company at the Chamber of Commerce. 
 
Business combinations 
A business combination is a transaction whereby the Group obtains control over the assets and 
liabilities and the activities of the acquired party. Business combinations are accounted for using 
the 'purchase accounting' method on the date that control is transferred to the Group (the 
acquisition date). The transaction price is the cash consideration or equivalent agreed as part of 
the acquisition, or the fair value of the consideration transferred at the acquisition date. 
Transaction costs that are directly attributable to the business combination are allocated to the 
transaction price. In case of deferred payment of the consideration, the transaction price is the 
discounted value of the consideration. 
 
The Group recognises the identifiable assets and liabilities of the acquired party at the acquisition 
date. These assets and liabilities are recognised individually at their fair values, provided that it is 
probable that future economic benefits will flow to the Group (assets) or settlement will result in 
an outflow of resources embodying economic benefits (liabilities), and the cost or fair value 
thereof can be measured with reliability. 
 
Consolidation principles 
The consolidated financial statements are prepared by using uniform accounting policies for 
measurement and determination of the result of the Group.  
 
In the consolidated financial statements, intragroup shareholdings, liabilities, receivables and 
transactions are eliminated. Also, the results on transactions between group companies are 
eliminated to the extent that the results are not realised through transactions with third parties 
outside the Group and no impairment loss is applicable.  
 
Translation of foreign currencies 
At initial recognition, transactions denominated in a foreign currency are translated into the 
Company’s functional currency at the exchange rates at the date of the transactions. 
 
Monetary assets and liabilities denominated in foreign currencies are translated at the balance 
sheet date into the functional currency at the spot exchange rate applying on that date. Exchange 
differences resulting from the settlement of monetary items, or resulting from the translation of 
monetary items denominated in foreign currency, are recognised in profit and loss in the period 
in which the exchange difference occurs. Exempt from this are exchange differences on monetary 
items that are part of a net investment in a foreign operation. 
 
Non-monetary assets and liabilities denominated in foreign currency that are measured based 
on historical cost, are translated into the functional currency at the exchange rates as at the date 
of the transactions. 
 
The assets and liabilities that are part of the net investment in a foreign operation are translated 
into the functional currency at the exchange rate prevailing on the reporting date. The income 
and expenses of a foreign operation are translated into euros at the average exchange rate for 
the year. Currency translation differences are recognised in the translation reserve within equity.

Inter IKEA Holding B.V. Annual report FY23 
Page 21 of 58 
 
 
 
 
Financial instruments 
Financial instruments include trade and other receivables, cash, loans and other financing 
commitments, trade payables, other amounts payable and derivative financial instruments. 
 
Financial assets and liabilities are recognised in the balance sheet at the moment that the 
contractual risks or rewards with respect to that financial instrument originate. Financial 
instruments are derecognised if a transaction results in a considerate part of the contractual risks 
or rewards with respect to that financial instrument being transferred to a third party. 
 
Financial and non-financial contracts may contain terms and conditions that meet the definition 
of derivative financial instruments. Such an agreement is separated from the host contract and 
accounted as a stand-alone derivative if its economic characteristics and risks are not closely 
related to those of the host contract, a separate instrument with the same terms and conditions 
as the embedded derivative would meet the definition of a derivative, and the combined 
instrument is not measured at fair value with changes in fair value recognised in the profit and 
loss account. Financial instruments embedded in contracts that are not separated from the host 
contract are recognised in accordance with the host contract. Derivatives separated from the host 
contract are, in accordance with the measurement policy for derivatives for which no cost price 
hedge accounting is applied, measured at cost or lower fair value. 
 
A purchase or sale of non-derivative financial assets according to standard market conventions 
is, by class of financial assets and financial liabilities, systematically recognised or derecognised 
in the balance sheet on the settlement date (date of transfer). 
 
Financial instruments are initially measured at fair value, including discount or premium and 
directly attributable transaction costs. However, if financial instruments are subsequently 
measured at fair value through profit and loss, then directly attributable transaction costs are 
directly recognised in the profit and loss account at the initial recognition. After initial recognition, 
financial instruments are valued in the manner described below. 
 
Loans granted and other receivables  
Loans granted and other receivables are carried at amortised cost on the basis of the effective 
interest method, less impairment losses. The effective interest and impairment losses, if any, are 
directly recognised in the profit and loss account. Purchases and sales of financial assets that 
belong to the category loans granted and other receivables are accounted for at the transaction 
date. 
 
Trade and other receivables 
Receivables are measured after their initial recognition at amortised cost (except for derivatives) 
less allowance for uncollectible amounts.  
 
Non-current and current liabilities and other financial commitments  
Non-current and current liabilities and other financial commitments are measured after their 
initial recognition at amortised cost on the basis of the effective interest rate method. The 
effective interest is directly recorded in the profit and loss account. 
Redemption payments regarding non-current liabilities that are due next year, are presented 
under current liabilities.

Inter IKEA Holding B.V. Annual report FY23 
Page 22 of 58 
 
 
 
 
Derivatives and hedge accounting 
Derivatives are measured at fair value with recognition of all changes in value in the profit and 
loss account, except where hedge accounting is used to hedge the variability of future cash flows 
that affect the profit and loss account (cash flow hedge accounting). 
 
Cash flow hedge 
If cash flow hedge accounting is used, the effective portion of the fair value changes of the 
derivatives is initially recognised in other comprehensive income. As soon as the expected future 
transactions lead to the recognition of gains or losses in the profit and loss account, the 
respective amounts are transferred from the hedging reserve of other comprehensive income to 
the profit and loss account. The net result of these gains and losses is recognised as financial 
income and expenses.  
 
If a derivative no longer meets the conditions for hedge accounting, expires or is sold, or if the 
Company has decided to no longer apply hedge accounting, the hedging relationship is 
terminated. The deferred gains or losses recognised at the time of the termination of the hedging 
relationship remain in equity until the expected future transaction takes place. If the transaction 
is no longer expected to take place, the deferred gain or loss on the hedge recognised in equity 
is transferred to the profit and loss account. 
 
Conditions for hedge accounting 
The Company uses hedge accounting documentation, documenting the specific hedge 
relationships in the dedicated treasury management system and regularly assesses the 
effectiveness of the hedging relationships by establishing whether the hedge is effective or that 
there is no over-hedging. 
 
The Company documents at the inception of the transaction the relationship between hedging 
instruments and hedged items as well as its risk management objective and strategy for 
undertaking hedge transactions together with methods selected to assess hedge effectiveness. 
The Company also documents its assessment, both at hedge inception and on an ongoing basis, 
of whether the derivatives that are used in hedging transactions are effective in offsetting 
changes in future cash flows (the hedged items). The effectiveness test is performed by 
comparing the critical attributes of the hedging instrument with the hedged item, namely 
currency pair, maturity date and notional amount.  If there is an over-hedge, the related value 
based on the lower of cost or fair value is recognised directly in the profit and loss account. 
 
Impairment of financial assets 
Financial assets (e.g. long-term loans receivable) are assessed at each reporting date to 
determine whether there is objective evidence that they are impaired. A financial asset is 
impaired if there is objective evidence of impairment as a result of one or more events that 
occurred after the initial recognition of the asset, with negative impact on the estimated future 
cash flows of that asset, which can be estimated reliably. 
 
Objective evidence that financial assets are impaired includes default or delinquency by a debtor, 
indications that a debtor or issuer will enter bankruptcy, adverse changes in the payment status 
of borrowers or issuers, indications that a debtor or issuer is approaching bankruptcy, or the 
disappearance of an active market for a security.

Inter IKEA Holding B.V. Annual report FY23 
Page 23 of 58 
 
 
 
 
The entity considers evidence of impairment for financial assets measured at amortised cost. All 
individually significant assets are assessed individually for impairment. 
 
An impairment loss in respect of a financial asset stated at amortised cost is calculated as the 
difference between its carrying amount and the present value of the estimated future cash flows 
discounted at the asset’s original effective interest rate.  
 
Impairment losses are recognised in the profit and loss account and reflected in an allowance 
account against loans and receivables or investment securities held to maturity. Interest on the 
impaired asset continues to be recognised by using the asset's original effective interest rate.  
 
When, in a subsequent period, the amount of an impairment loss decreases, and the decrease 
can be related objectively to an event occurring after the impairment was recognised, the 
decrease in impairment loss is reversed through profit or loss (up to the amount of the original 
amortised cost). 
 
Offsetting financial instruments 
A financial asset and a financial liability are offset when the entity has a legally enforceable right 
to set off the financial asset and financial liability and the Company has the firm intention to settle 
the balance on a net basis, or to settle the asset and the liability simultaneously.  
 
Intangible fixed assets 
Intangible fixed assets are only recognised in the balance sheet when it is probable that the 
expected future economic benefits that are attributable to the asset will flow to the Company and 
the cost of that asset can be measured reliably. 
 
Intangible fixed assets are measured at acquisition or development cost, less accumulated 
amortisation and impairment losses.  
 
Expenditures made after the initial recognition of an acquired or constructed intangible fixed 
asset are included to the acquisition or construction cost if it is probable that the expenditures 
will lead to an increase in the expected future economic benefits, and the expenditures and the 
allocation to the asset can be measured reliably. If expenditures do not meet these conditions, 
they are recognised as an expense in the profit and loss account. 
 
The accounting principles for the recognition of an impairment are included under the section 
‘Impairment of fixed assets’. 
 
Proprietary Rights 
The Proprietary Rights include the IKEA trademark, protection rights, intellectual property rights 
and the rights to the IKEA catalogue.  
 
The IKEA Brand and IKEA Concept have shown strong income and cash flow performance over 
the last decades. We have the intent and ability to support the IKEA Brand with marketplace 
spending for the foreseeable future. Applicable Dutch accounting principles require us to 
amortise these Proprietary Rights based on expected economic life. Determining an expected 
economic life of the Proprietary Rights requires management assessment and is based on a 
number of factors, including: expected usage of the IKEA Brand and IKEA Concept, development

Inter IKEA Holding B.V. Annual report FY23 
Page 24 of 58 
 
 
 
 
of our market share, expectations on market development, consumer awareness and anticipated 
future expansion. Based on these factors, the expected economic life is set at 45 years. 
 
At the end of each financial year, the recoverable amount of the Proprietary Rights is assessed 
for impairment, even if there is no indication of impairment.  
 
Accounting for emission rights 
The group recognizes emissions certificates as current intangible assets. Emissions certificates 
are received from the government and traded on the market are initially measured at cost. This 
follows the same principle as for the intangible fixed assets set above.  
 
Development costs 
Internally developed software is carried at cost less accumulated amortisation and impairment 
losses. Amortisation is calculated using the straight-line method and starts when the software is 
ready for usage. Internally developed software is capitalized if the following conditions are met: 
the intention exists to complete the asset and after completion to use or sell it (including the 
availability of adequate technical, financial and other resources to achieve this), it is probable that 
the asset will generate future economic benefits, and the costs during the development phase 
can be determined reliably. The useful life differs per software platform. A legal reserve is formed 
for the capitalised development costs that have not yet been amortised. 
 
Tangible fixed assets 
Tangible fixed assets are recognised in the balance sheet when it is probable that the expected 
future economic benefits that are attributable to the asset will flow to the Company and the cost 
of that asset can be measured reliably. 
 
Land and buildings, machinery and equipment, construction in progress and other fixed 
operating assets are stated at cost less accumulated depreciation and impairment losses. The 
cost comprises the price of acquisition or manufacturing, plus other costs that are necessary to 
bring the assets to their location and in condition for their intended use. Investment grants are 
deducted from the cost of the assets to which the grants relate. Expenditure is only capitalised 
when it extends the useful life of the asset. Costs of major rebuilding, repairs or maintenance are 
capitalised at cost, when incurred and if the recognition criteria are met, using the component 
approach. All other repair and maintenance costs are charged directly to the profit and loss 
account.  
 
The Company applies the component approach for tangible fixed assets if important individual 
components of a tangible fixed asset can be distinguished from each other. Taking into account 
differences in useful life or expected pattern of use, these components are depreciated 
separately. 
 
Depreciation is recognised in the profit and loss account on a straight-line basis over the 
estimated useful lives of each item of the tangible fixed assets, taking into account any estimated 
residual value of the individual assets. Depreciation starts as soon as the asset is available for its 
intended use, and ends at decommissioning or divestment. No depreciation is recognised on 
land.

Inter IKEA Holding B.V. Annual report FY23 
Page 25 of 58 
 
 
 
 
Financial fixed assets 
Long-term loans receivable  
The accounting policies for Long-term loans receivable are included under the heading ‘Financial 
instruments’ 
 
Deferred tax assets 
The valuation of deferred tax assets is explained under the heading ‘Corporate income tax’. 
 
Impairment of fixed assets 
Tangible and intangible fixed assets are assessed at each reporting date whether there is any 
indication of an impairment. If any such indication exists, the recoverable amount of the asset is 
estimated. The recoverable amount is the higher of value in use and net realisable value. If it is 
not possible to assess the recoverable amount for an individual asset, the recoverable amount is 
assessed for the cash-generating unit (CGU) to which the asset belongs. 
 
When the carrying amount of an asset or CGU exceeds its recoverable amount, an impairment 
loss is recognised for the difference between the carrying amount and the recoverable amount. 
If there is an impairment loss for a CGU, the loss is first allocated to goodwill allocated to the CGU. 
Any residual loss is allocated to the other assets of the unit pro rata to their book values. 
 
Subsequently, at each reporting date, the entity assesses whether there is any indication that an 
impairment loss that was recorded in previous years has been decreased. If any such indication 
exists, then the recoverable amount of the asset or CGU is estimated.  
 
Reversal of a previously recognised impairment loss only takes place when there is a change in 
the assessment used to determine the recoverable amount since the recognition of the last 
impairment loss. In such case, the carrying amount of the asset (or CGU) is increased to its 
recoverable amount, but not higher than the carrying amount that would have applied (net of 
depreciation) if no impairment loss had been recognised in previous years for the asset (or CGU). 
 
Contrary to what is stated before, at each reporting date the recoverable amount is assessed for 
the following assets (irrespective of whether there is any indicator of an impairment): 
- 
intangible assets that have not been put into use yet; 
- 
intangible assets that are amortised over a useful life of more than 20 years (counting 
from the moment of initial operation/use). 
 
Disposal of fixed assets 
Fixed assets available for sale are measured at the lower of their carrying amount and net 
realisable value. 
 
Inventories 
Inventories are valued at the lower of cost and net realisable value. Cost includes the expenses 
for acquisition or manufacturing, plus other expenditure to bring the inventories to their present 
location and condition. Net realisable value is based on the most reliable estimate of the sales 
proceeds the inventories will generate, less costs still to make. Valuation of purchased goods is 
calculated based on the ‘first in – first out’ (FIFO) method which assumes that the goods purchased 
first, are the first goods to be sold.

Inter IKEA Holding B.V. Annual report FY23 
Page 26 of 58 
 
 
 
 
Other receivables 
The accounting policies applied for the valuation of other receivables are disclosed under the 
heading ‘Financial instruments’. 
 
Cash and cash equivalents 
Cash and cash equivalents are measured at nominal value. If cash and cash equivalents are not 
readily available, this is taken into account in the measurement. 
 
Cash and cash equivalents denominated in foreign currencies are translated at the balance sheet 
date in the functional currency at the exchange rate valid at that date. Reference is made to the 
accounting policies for foreign currencies. 
 
Shareholders’ equity 
Financial instruments that are designated as equity instruments by virtue of the economic reality 
are presented under shareholders’ equity. Payments to holders of these instruments are 
deducted from the shareholders’ equity as part of the profit distribution.  
 
Financial instruments that are designated as a financial liability by virtue of the economic reality 
are presented under liabilities. Interest, dividends, income and expenditure with respect to these 
financial instruments are recognised in the profit and loss as financial income or expense.  
 
Share Premium 
Amounts contributed by the shareholder(s) of the Company in excess of the nominal share 
capital, are accounted for as share premium. This also includes additional capital contributions 
by existing shareholders without the issue of shares or issue of rights to acquire shares of the 
Company.  
 
Translation reserve 
Exchange gains and losses arising from the translation of the functional currency of foreign 
operations to the reporting currency of the parent are accounted for in this legal reserve. In the 
case of the sale of a foreign operation, the associated accumulated exchange differences are 
transferred from the translation reserve to the profit and loss account. 
 
Legal reserve 
Other legal reserves consist of a legal reserve for capitalised development costs and a legal 
reserve for non-distributable profits.  
 
Provisions 
A provision is recognised if the following applies: 
1. the Company has a legal or constructive obligation arising from a past event;  
2. and the amount of the liability can be estimated reliably; 
3. and it is probable that an outflow of resources embodying economic benefits will be 
required to settle the obligation. 
If all or part of the payments that are necessary to settle a provision are likely to be fully or 
partially compensated by a third party upon settlement of the provision, then the compensation 
amount is presented separately as an asset. 
 
If the time value of money is material and the period over which the cash outflows are discounted 
is more than one year, provisions are measured at the present value of the best estimate of the

Inter IKEA Holding B.V. Annual report FY23 
Page 27 of 58 
 
 
 
 
cash outflows that are expected to be required to settle the liabilities and losses. The provisions 
are measured at nominal value if the time value of money is not material or If the period over 
which the cash outflows are discounted is no longer than one year. 
 
Provision for deferred tax liabilities 
The valuation of deferred tax liabilities is explained under the heading ‘Corporate income tax’. 
 
Pensions and other post-employment benefits 
The Company operates a number of pension plans, which have been established in accordance 
with the regulations and practices of the individual countries. The plans include both defined 
contribution plans and defined benefit plans. Accounting standard RJ 271 “Employee Benefits” 
offers the possibility to apply IFRS EU standards relating to the accounting treatment of pensions 
(IAS 19 “Employee Benefits”) in financial statements that have been prepared in accordance with 
Part 9, Book 2 of the Dutch Civil Code. This makes the IFRS standard for pension obligations a 
factual part of the Dutch guidelines (RJ 271.101). The Company applies IAS 19 to all post-
employment benefits.  
  
Defined contribution plans 
Obligations for contributions to defined contribution plans are expensed as the related service is 
provided. Prepaid contributions are recognised as an asset to the extent that a cash refund or a 
reduction in future payments is available.  
 
Defined benefit plans 
The net obligations in respect of defined benefit plans are calculated separately for each plan by 
estimating the amount of future benefits that employees have earned in the current and prior 
periods, discounting that amount and deducting the fair value of any plan assets.  
 
The calculation of defined benefit obligations is performed annually by a qualified actuary using 
the projected unit credit method. When the calculation results in a potential asset for the Group, 
the recognised asset is limited to the present value of economic benefits available in the form of 
any future refunds from the plan or reductions in future contributions to the plan (‘asset ceiling’). 
To calculate the present value of economic benefits, consideration is given to any applicable 
minimum funding requirements.  
 
Remeasurements of the net defined benefit liability, which comprise actuarial gains and losses, 
the return on plan assets (excluding interest) and the effect of the asset ceiling (if any, excluding 
interest), are recognised immediately in equity. The Group determines the net interest expense 
(income) on the net defined benefit liability (asset) for the period by applying the discount rate 
used to measure the defined benefit obligation at the beginning of the annual period to the net 
defined benefit liability (asset), taking into account any changes in the net defined benefit liability 
(asset) during the period as a result of contributions and benefit payments. Net interest expense 
and other expenses related to defined benefit plans are recognised in profit or loss. 
 
When the benefits of a plan are changed or when a plan is curtailed, the resulting change in 
benefit that relates to past service or the gain or loss on curtailment is recognised immediately 
in profit or loss. The Group recognises gains and losses on the settlement of a defined benefit 
plan when the settlement occurs.

Inter IKEA Holding B.V. Annual report FY23 
Page 28 of 58 
 
 
 
 
Provision for claims, disputes and lawsuits 
A provision for claims, disputes and lawsuits is established when it is expected that the Company 
will be sentenced in legal proceedings. The provision represents the best estimate of the amount 
for which the claim can be settled, including the costs of litigation. 
 
Non-current liabilities 
The valuation of non-current liabilities is explained under the heading ‘Financial instruments’. 
 
Revenue recognition 
The company usually recognizes revenue at the level of separate contracts. If it is necessary to 
reflect economic reality, revenue is recognized at the level of a group of contracts, for example 
where the Company has entered into several separate contracts, which have been negotiated as 
a total, separating the individual contracts in terms of pricing and profit margin that are closely 
related and are performed simultaneously or immediately after each other.  
 
Amounts that the Company receives for its own account (as principal) are recognized as revenue. 
Amounts that the Company receives for third parties (as an agent) are not recognized as revenue. 
Revenues only include the gross increases in economic potential that the Company has received 
or has receivable for its own account.  
 
The Company recognizes revenue for the amount to which the Company expects to be entitled 
in exchange for transferring promised goods, which is the transaction price. This amount 
excludes amounts received on behalf of third parties. 
 
Revenue is recognized per separate performance obligation. A performance obligation is a 
commitment in a contract to supply: 
- 
a distinct good or service or a combination of goods or services which are collectively 
distinguishable from other commitments in the contract; or 
- 
a range of distinct services that are largely the same.  
 
A promised good or promised service can be distinguished if the following criteria are met: 
- 
the buyer can use the benefits of the goods or services independently, whether or not 
jointly with resources that the buyer has or can obtain; and 
- 
the commitment to provide the goods or services is distinct from the other commitments 
contained in the contract.  
 
If a contract contains two or more commitments to provide goods or services which are 
separately distinguishable, the commitments are combined into a combination of goods or 
services that are collectively distinct from other commitments in the agreement.  
 
In the event of multiple performance obligations in a contract, the total transaction price is 
allocated to the performance obligations in proportion to the value of the performance 
obligations. The value is based on the stand-alone selling price per performance obligation. If the 
standalone sales price is not known, the Company uses estimates.  
 
Sale of goods 
Revenue from the sale of goods is accounted for in net turnover at the fair value of the 
consideration received or receivable, net of returns and allowances, trade discounts and volume 
rebates. Revenue from the sale of goods is recognised in the profit and loss account when the

Inter IKEA Holding B.V. Annual report FY23 
Page 29 of 58 
 
 
 
 
significant risks and rewards of ownership have been transferred to the buyer, the amount of the 
revenue can be determined reliably, recovery of consideration is probable, the associated costs 
and possible return of goods can be estimated reliably, and there is no continuing involvement 
with the goods. 
 
Franchise fees 
Franchise fees are received for the use of the IKEA trademarks, patents and software. Revenue is 
recognised when the amount of the consideration receivable can be determined reliably and 
recovery is probable. 
 
Change in inventory of finished goods 
Changes in inventories of finished products is related to the manufacturing activities of Supply. 
 
Revenue and expenses are allocated to the period to which they relate. 
 
Expenses 
Expenses, including interest, are determined with due observance of the aforementioned 
accounting policies and allocated to the year to which they relate. Foreseeable and other 
obligations as well as potential losses arising before the financial year-end are recognised if 
known before the financial statements are prepared and provided all other conditions for the 
recognition of a provision are met. 
 
Employee benefits 
Employee benefits are charged to the profit and loss account in the period in which the employee 
services are rendered and, to the extent not already paid, as a liability on the balance sheet. If the 
amount already paid exceeds the benefits owed, the excess is recognised as a current asset to 
the extent that there will be a reimbursement by the employees or a reduction in future payments 
by the Company. 
 
For benefits with accumulating rights and bonuses, the projected costs are taken into account 
during the employment. An expected payment resulting from profit-sharing and bonus payments 
is recognised if the obligation for that payment has arisen on or before the balance sheet date 
and a reliable estimate of the liabilities can be made. 
 
If a benefit is paid in case of non-accumulating rights (e.g., continued payment in case of sickness 
or disability), the projected costs are recognised in the period in which such benefit is payable. 
For existing commitments at the balance sheet date to continue the payment of benefits 
(including termination benefits) to employees who are expected to be unable to perform work 
wholly or partly due to sickness or disability in the future, a provision is recognised. 
 
The recognised liability relates to the best estimate of the expenditure necessary to settle the 
obligation at the balance sheet date. The best estimate is based on contractual agreements with 
employees (collective agreement and individual employment contract). Additions to and reversals 
of liabilities are charged or credited to the profit and loss account. 
 
The liability for benefits during employment is measured at present value of the expenditure 
expected to be required to settle the obligation.

Inter IKEA Holding B.V. Annual report FY23 
Page 30 of 58 
 
 
 
 
Leasing 
The Company may enter into finance and operating leases. A lease agreement under which the 
risks and rewards of ownership of the leased object are carried entirely or almost entirely by the 
lessee are classified as finance leases. All other leases are classified as operating leases. For the 
lease classification, the economic substance of the transaction is conclusive rather than the legal 
form. 
 
At inception of an arrangement, the Company assesses whether the lease classifies as a finance 
or operating lease.  
 
If the Company acts as lessee in an operating lease, the leased property is not capitalised. Benefits 
received as an incentive to enter into an agreement are recognised as a reduction of rental 
expense over the lease term. Lease payments and benefits regarding operating leases are 
recognised to the profit and loss account on a straight-line basis over the lease term, unless 
another systematic basis is more representative of the time pattern of the benefits from the use 
of the leased asset. 
 
Financial income and expenses 
Financial income is recognised in the profit and loss account on an accrual basis, using the 
effective interest rate method. Financial expenses and similar expenses are recognised in the 
period to which they belong. Hedge results are recorded in financial income and expense on a 
net basis.  
 
Corporate income tax 
Corporate income tax comprises the current and deferred corporate income tax payable and 
deductible for the reporting period. Corporate income tax is recognised in the profit and loss 
account except to the extent that it relates to items recognised directly to equity, in which case it 
is recognised in equity, or to business combinations. 
 
Current tax comprises the expected tax payable or receivable on the taxable profit or loss for the 
financial year, calculated using tax rates enacted or substantively enacted at the reporting date, 
and any adjustment to the tax payable in respect of previous years. If the carrying amounts of 
assets and liabilities for financial reporting differ from their values for tax purposes (tax base), 
this results in temporary differences. For taxable temporary differences, a provision for deferred 
tax liabilities is recognised.  
 
For deductible temporary differences, available tax losses and unused tax credits, a deferred tax 
asset is recognised, but only to the extent that it is probable that future taxable profits will be 
available for set-off or compensation. Deferred tax assets are reviewed at each reporting date 
and reduced to the extent that it is no longer probable that the related tax benefit will be realised. 
 
For taxable temporary differences relating to group companies, foreign branches, associates and 
joint ventures, a deferred tax liability is recognised, unless it is probable that the temporary 
difference will not reverse in the foreseeable future. The measurement of deferred tax liabilities 
and deferred tax assets is based on the tax consequences following from the manner in which 
the Company expects, at the balance sheet date, to realise or settle its assets, provisions, debts 
and accrued liabilities. Deferred tax assets and liabilities are measured at nominal value.

Inter IKEA Holding B.V. Annual report FY23 
Page 31 of 58 
 
 
 
 
Cash flow statement 
The cash flow statement is prepared using the indirect method. Cash and cash equivalents 
include cash and investments that are readily convertible to a known amount of cash without a 
significant risk of changes in value. Cash flows in foreign currency are translated into euros using 
the weighted average exchange rate for the reporting period. Currency translation differences 
with regard to cash and cash equivalents are presented separately in the cash flow statement. 
 
Receipts and payments of interest and income taxes are presented within the cash flows from 
operating activities. Payments of dividends are presented within the cash flows from financing 
activities.  
 
Cash flows from derivative financial instruments that are accounted for as fair value hedges or 
cash flow hedges, are classified in the same category as the cash flows from the hedged balance 
sheet items and are part of change working capital. Cash flows from derivative financial 
instruments whereby hedge accounting is no longer applied, are classified in accordance with 
the nature of the instrument, from the date at which hedge accounting is ended. 
 
Determination of fair value 
The fair value of a financial instrument is the amount for which an asset can be sold or a liability 
settled, involving parties who are well informed regarding the matter, willing to enter into a 
transaction and are independent from each other.  
• 
The fair value of listed financial instruments is determined on the basis of the exit price. 
• 
The fair value of non-listed financial instruments is determined by discounting the 
expected cash flows to their present value, applying a discount rate that is equal to the 
current risk-free market interest rate for the remaining term, plus credit and liquidity 
surcharges. 
• 
The fair value of derivatives involving the exchange of collateral is determined without 
the credit or liquidity surcharges since this risk is mitigated by the collateral exchange.  
 
Related parties and related party transactions 
Transactions with related parties are assumed when a relationship exists between the Company 
and a natural person or entity that is affiliated with the Company. This includes, amongst others, 
the relationship between the Company and its subsidiaries, shareholders, directors and key 
management personnel. Transactions are transfers of resources, services or obligations, 
regardless whether anything has been charged. 
 
Subsequent events 
Events that provide further information on the actual situation at the balance sheet date and that 
appear before the financial statements are being prepared, are recognised in the financial 
statements. Events that provide no further information on the actual situation at the balance 
sheet date are not recognised in the financial statements. When those events are relevant for the 
economic decisions of users of the financial statements, the nature and the estimated financial 
effects are disclosed in the financial statements.

Inter IKEA Holding B.V. Annual report FY23 
Page 32 of 58 
 
 
 
 
4. 
INTANGIBLE FIXED ASSETS 
 
Movements in intangible fixed assets were as follows: 
 
 
 
Proprietary Rights 
In 2011 the Company (through its subsidiary Inter IKEA Systems B.V.), acquired the beneficial 
interest of the IKEA Proprietary Rights (“IP Rights”) from Interogo Foundation for a total 
consideration of EUR 11,800 million. These Rights include the IKEA trademark, protection rights, 
intellectual property rights and the rights to the IKEA catalogue.  
 
Development costs 
Development costs relate to various internally developed software to gain economic benefits. The 
expected useful life is aligned with the expected economic benefits.  
 
 
 
 
 Proprietary 
rights 
 Developm. 
costs 
 Other 
 Total 
Balance as at 1 September 2022:
Purchase price
11,800
             
216
                   
5
                        
12,021
              
Accumulated amortisation and impairment
(2,437)
              
(215)
                  
-
                         
(2,652)
              
Carrying amount
9,363
               
1
                        
5
                        
9,369
              
Changes in carrying amount:
Amortisation
(273)
                  
(1)
                       
(1)
                       
(275)
                  
Other
1
                        
-
                         
(1)
                       
-
                         
Balance
9,091
              
-
                         
3
                        
9,094
              
Balance as at 31 August 2023:
Purchase price
11,800
             
216
                   
5
                        
12,021
              
Accumulated amortisation and impairment
(2,709)
              
(216)
                  
(2)
                      
(2,927)
              
Carrying amount closing
9,091
              
-
                         
3
                        
9,094
              
Estimated useful life (years)
45
                     
5
                        
3-5

Inter IKEA Holding B.V. Annual report FY23 
Page 33 of 58 
 
 
 
 
5. 
TANGIBLE FIXED ASSETS 
 
Movements in tangible fixed assets were as follows: 
 
 
 
Tangible fixed assets carried at cost do not include capitalised interest charges. 
 
Tangible fixed assets include an amount of EUR 15 million (FY22: EUR 18 million), which is pledged 
for debts to credit institutions. 
 
Construction in progress is mainly related to the factories and office buildings in Älmhult.  
 
 
 
 
 
 Land 
and 
buildings 
 Mach.
and
equip. 
 Constr.
in
progress 
 Other 
 Total 
Balance as at 1 September 2022:
Purchase price
1,472
                
1,182
                
190
                   
111
                    
2,955
                
Accumulated depreciation and impairment
(473)
                  
(731)
                  
(3)
                      
(87)
                    
(1,294)
               
Carrying amount
999
                  
451
                   
187
                   
24
                     
1,661
               
Changes in carrying amount:
Investments
14
                      
17
                      
311
                    
5
                        
347
                   
Disposals
(1)
                       
(6)
                      
-
                         
-
                         
(7)
                      
Translation differences
(59)
                    
(2)
                      
(7)
                      
(1)
                       
(69)
                    
Transfers
110
                   
64
                     
(180)
                 
6
                        
-
                         
Depreciation
(69)
                    
(105)
                  
-
                         
(11)
                     
(185)
                  
Other
(6)
                      
3
                        
(1)
                       
(1)
                       
(5)
                      
Balance
988
                  
422
                   
310
                   
22
                     
1,742
               
Balance as at 31 August 2023:
Purchase price
1,530
                
1,258
                
313
                   
120
                   
3,221
                
Accumulated depreciation and impairment
(542)
                  
(836)
                 
(3)
                      
(98)
                    
(1,479)
               
Carrying amount
988
                  
422
                   
310
                   
22
                     
1,742
               
Estimated useful life (years)
0-25
3-15
N/A
Various

Inter IKEA Holding B.V. Annual report FY23 
Page 34 of 58 
 
 
 
 
6. 
FINANCIAL FIXED ASSETS 
 
Movements in financial fixed assets were as follows: 
 
 
 
The deferred tax assets relate to deductible temporary differences. It is expected EUR 33 million 
will be offset within one year. 
 
The long term loans receivable mainly encompass supplier financing with a gross amount of EUR 
126 million (FY22: EUR 87 million), off-set by a provision of EUR 95 million (FY22: EUR 68 million) 
and a loan to one of our associates. The current part of the long term loans receivable has been 
presented under Receivables which is the gross outstanding amount.   
 
Other financial fixed assets relate to investments in associates.  
 
 
7. 
INVENTORIES 
 
 
 
A limited part of the trade goods is valued at the net realizable value. All other inventories are 
valued at cost. 
 
The movement in the provision for obsolescence for inventories is as follows: 
 Deferred
tax
asset 
 LT loans 
receivable 
 Other 
 Total 
Balance as at 1 September 2022:
185
                   
44
                     
41
                     
270
                   
Changes in carrying amount:
Investments
-
                         
-
                         
3
                        
3
                        
Additions
87
                     
-
                         
-
                         
87
                     
New loans
-
                         
56
                     
-
                         
56
                     
Used
(22)
                    
-
                         
-
                         
(22)
                    
Released
(9)
                      
-
                         
-
                         
(9)
                      
Repayments
-
                         
(4)
                      
-
                         
(4)
                      
Other
(8)
                      
8
                       
(3)
                      
(3)
                      
From long-term to current portion
-
                         
(3)
                      
-
                         
(3)
                      
Reclassification of  assets
(11)
                     
-
                         
-
                         
(11)
                     
Write-off
-
                         
(27)
                    
-
                         
(27)
                    
Balance
37
                     
30
                     
-
                         
67
                     
Balance as at 31 August 2023:
222
                   
74
                     
41
                     
337

Inter IKEA Holding B.V. Annual report FY23 
Page 35 of 58 
 
 
 
 
 
 
 
8. 
TRADE AND OTHER RECEIVABLES 
 
 
 
The trade and other receivables all have an estimated maturity shorter than one year. 
 
The carrying values of the recognised receivables approximate their respective fair values, given 
the short maturities of the positions and the fact that allowances for doubtful debts have been 
recognised, if necessary. 
 
 
 
 
9. 
CASH AND CASH EQUIVALENTS 
 
Cash and cash equivalents include an amount of EUR 15 million (FY22: EUR 19 million) relating to 
guarantees that are not immediately accessible. 
 
 
10. 
GROUP EQUITY 
 
For details on shareholders’ equity, refer to note 5 in the Company financial statements. 
 
 
11. 
PROVISIONS 
 
Movements in provisions can be specified as follows: 
FY23
FY22
Balance as at 1 September 2022:
131
                    
137
                   
Addition, charged to the profit and loss account
151
                    
32
                     
Write-offs charged against the provision
(27)
                    
(3)
                      
Release, credited to the profit and loss account
(10)
                    
(35)
                    
Balance as at 31 August 2023:
245
                   
131
                   
FY23
FY22
Trade receivables
3,142
                
3,326
                
Current portion of long-term loans receivable
81
                     
131
                    
Income tax receivable
88
                     
71
                      
Indirect tax receivable
182
                   
237
                   
Receivable on related parties
-
                         
2,889
               
Receivable on Interogo Holding AG
3,230
               
-
                         
Derivatives assets
15
                      
70
                     
Prepaid expenses and accrued income
84
                     
104
                   
Other receivables
65
                     
78
                     
Total
6,887
              
6,906
              
FY23
FY22
Amortised cost of outstanding receivables
3,142
                
3,336
                
Less: allowance for doubtful debts
-
                   
(10)
                    
Trade Receivables
3,142
               
3,326

Inter IKEA Holding B.V. Annual report FY23 
Page 36 of 58 
 
 
 
 
 
 
The Company has recognised a provision for deferred taxes for differences between valuation 
principles for financial reporting purposes and for tax purposes. It is expected EUR 8 million will 
be offset within one year.  
 
For details on the provision for pensions commitments in, the Netherlands and Switzerland refer 
to note 12. The remaining amount is divided over several countries.  
 
The provision in respect of claims, disputes and lawsuits mainly relates to product infringement 
claims and product liability involving the Company and/or its group companies.  
 
The provision for Other consists of different types of smaller provisions. The largest provision 
relating to tax expenses recorded for potential unfavourable outcomes in tax audits and disputes 
has been released in FY23 for an amount of EUR 12 million.  
 
 
12. 
PENSION AND OTHER POST-EMPLOYMENT BENEFITS 
 
 
 
The Group has a number of defined benefit pension plans in the Netherlands and Switzerland.  
 
There are minimum funding requirements applicable for the pension plans in the Netherlands 
and Switzerland as set out by local legislation.  
 
For most salaried employees in Sweden, the ITP 2 plan's defined-benefit pension commitments 
for old-age and family pensions are secured through insurance with Alecta. According to IAS 19, 
the pension plan ITP 2 financed through insurance with Alecta is a defined benefit plan that covers 
multiple employers. For the financial year ending 31 August 2023, the company has not had 
access to information in order to be able to report its proportional share of the plan's obligations, 
plan assets and costs, which meant that the plan was not possible to report as a defined benefit 
plan. The ITP 2 pension plan that is secured through insurance with Alecta is therefore reported 
as a defined contribution plan. Premiums for the defined-benefit old-age and family pensions are 
Pension
Deferred tax 
liability
 
Restructuring 
 Legal 
Claims 
Other
Total
Balance as at 1 September 2022:
6
                       
51
                     
-
                         
21
                     
46
                     
124
                   
Changes:
- Provisions made during the year
14
                      
3
                        
51
                      
-
                         
10
                     
78
                     
- Provisions used during the year
(2)
                      
(13)
                    
(7)
                      
-
                         
(8)
                      
(30)
                    
- Provisions released during the year
(1)
                       
(1)
                       
-
                         
(3)
                      
(18)
                    
(23)
                    
- Reclassification to assets / liabilities
-
                         
(11)
                     
(12)
                    
-
                         
-
                         
(23)
                    
- Other
1
                        
(4)
                      
-
                         
-
                         
(5)
                      
(8)
                      
Balance as at 31 August 2023:
18
                     
25
                     
32
                     
18
                     
25
                     
118
                   
FY23
FY22
Defined benefit obligation - funded plans
187
                  
163
                 
Defined benefit obligation - unfunded plans
65
                    
58
                   
Fair value on plan assets
(273)
                
(248)
               
Effect of asset ceiling
24
                    
23
                   
Net defined benefit liability
3
                      
(4)

Inter IKEA Holding B.V. Annual report FY23 
Page 37 of 58 
 
 
 
 
calculated individually and are dependent on, among other things, salary, previously earned 
pension and expected remaining period of service.  
 
The collective consolidation level is the market value of Alecta's assets as a percentage of the 
insurance commitments calculated according to Alecta's actuarial methods and assumptions. The 
collective consolidation level should normally be allowed to vary between 125 and 175 percent. In 
order to strengthen the level of consolidation if it is deemed to be too low, one measure may be 
to increase the agreed price for new subscriptions and changes of existing benefits. If the 
consolidation level exceeds 150 percent, premium reductions can be introduced. At the end of 
June 2023, Alecta's surplus in the form of the collective consolidation level amounted to 175 
percent (FY22: 185 percent). 
 
Movement in Net defined benefit liability  
 
 
 
The present value of the defined benefit liability is detailed as below: 
 
Plan assets 
The major categories of plan assets of the fair value of the total plan assets are, as follows: 
 
2023
2022
2023
2022
2023
2022
Balance at 1 September
221
             
378
            
(248)
           
(272)
            
(4)
                
106
            
Included in profit or loss
Current service cost
13
                
20
               
-
                   
-
                   
13
                
20
               
Past service cost
-
                   
1
                  
-
                   
-
                   
-
                   
1
                  
(Gain) / loss on settlements
-
                   
(14)
              
-
                   
-
                   
-
                   
(14)
              
Interest cost / (income)
7
                  
4
                 
(8)
                
(3)
                 
(1)
                 
1
                  
20
               
11
               
(8)
                
(3)
                 
12
                
8
                 
Included in OCI
Remeasurements of defined benefit pensions plans:
- Actuarial loss (gain) arising from:
   - demographic assumptions
1
                  
2
                 
-
                   
-
                   
1
                  
2
                 
   - financial assumptions
(7)
                 
(103)
           
-
                   
-
                   
(7)
                 
(103)
           
   - experience adjustment
2
                  
10
               
-
                   
-
                   
2
                  
10
               
- Return on plan assets excluding interest income
-
                  
20
               
60
               
20
               
60
               
Effect of movements in exchange rates 
2
                  
7
                 
(2)
                 
(9)
                 
-
                   
(2)
                
Effect of asset ceiling
-
                  
-
                   
-
                   
1
                  
23
               
(2)
                 
(84)
             
18
               
51
                
17
                
(10)
             
Other
Contributions paid by the employer
-
                   
(1)
                
(20)
              
(16)
               
(20)
              
(17)
              
Settlement payments by the employer
-
                   
(91)
              
-
                   
-
                   
-
                   
(91)
              
Settlement payments from plan assets
1
                  
2
                 
(1)
                 
(2)
                 
-
                   
-
                  
Participation contribution
9
                  
7
                 
(9)
                 
(7)
                 
-
                   
-
                  
Other
3
                  
(1)
                
(5)
                 
1
                  
(2)
                 
-
                  
13
                
(84)
             
(35)
              
(24)
              
(22)
              
(108)
           
Balance at 31 August
252
             
221
             
(273)
            
(248)
           
3
                  
(4)
                
Defined benefit
Fair value of
Net defined benefit
obligation
plan assets
liability (asset)

Inter IKEA Holding B.V. Annual report FY23 
Page 38 of 58 
 
 
 
 
 
 
The plan assets do not include investments in shares, issued debt or property owned by the 
Company. Total plan assets with a quoted market prices amounts to EUR 268 million (FY22: 
EUR 248 million). 
 
Defined benefit obligation 
 
Actuarial assumptions 
The principal weighted-average assumptions used in determining the defined benefit obligations 
are shown below: 
 
 
The pre-retirement mortality assumption has been calculated per country, based on generally 
accepted mortality tables, such as DUS14 for Sweden and BVG2020 Generational for Switzerland. 
 
The average duration of the defined benefit plan obligation at 31 August 2023 is 20 years (FY22: 
20 years). 
 
The Company expects to contribute EUR 20 million to its defined benefit pension plans in FY24. 
 
Sensitivity analysis 
Sensitivity analyses (in- and decrease by 0.5%) have been performed on both the discount rate 
and the salary increase rate, calculating the present value of the defined benefit obligation as at 
31 August 2023. 
 
 
 
 
13. 
NON-CURRENT LIABILITIES 
 
 
 
Debts to related party in FY22 related to a loan granted by Interogo Holding AG for the acquisition 
of the Proprietary Rights; EUR 5,400 million. In FY23, this loan was contributed by means of a 
capital contribution.  
FY23
FY22
Cash and cash equivalents
3
                        
4
                        
Equity instruments
94
                     
88
                     
Debt instruments
125
                   
113
                    
Real estate
45
                     
40
                     
Other
6
                        
3
                        
Total
273
                   
248
                  
FY23
FY22
Discount rate
3.2%
3.1%
Future salary increase rate
2.4%
2.2%
+50 bp
-50 bp
+50 bp
-50 bp
Present value defined benefit obligation
231
                   
276
                   
254
                   
250
                   
Salary increases
Discount rate
FY23
FY22
Debts to related party
-
                         
5,414
                
Other debts
86
                     
119
                    
Closing Balance
86
                     
5,533

Inter IKEA Holding B.V. Annual report FY23 
Page 39 of 58 
 
 
 
 
 
The movements in non-current liabilities can be specified as follows: 
 
 
 
 
14. 
CURRENT LIABILITIES 
 
 
 
Short-term borrowings at different finance institutions bear market interest rates according to 
local conditions for currencies involved.  
 
Other liabilities relate mainly to regular notional account borrowing from Interogo Holding AG. 
In FY22, when Interogo Holding AG was a Company shareholder, these accounts were presented 
as Payable related parties.  
 
All current liabilities have an estimated maturity shorter than one year.  
 
 
15. 
FINANCIAL INSTRUMENTS 
 
General  
During the normal course of business, the Company uses various financial instruments that 
expose it to currency, interest, cash flow, fair value, market, credit and liquidity risks. To control 
these risks, the Company has instituted a policy including a code of conduct and procedures that 
are intended to limit the risks of unpredictable adverse developments in the financial markets 
and thus for the financial performance of the Company.   
 
 
FY23
FY22
Principal amount
8,716
                
8,606
               
Repaid until 31 August
(3,169)
               
(2,625)
              
Outstanding principal amount as per 1 September
5,547
               
5,981
               
Contribution
(5,400)
              
-
                         
Repayments
(27)
                    
(556)
                  
Additions
-
                         
110
                   
	Difference in foreign currency translation
(15)
                    
12
                      
Outstanding principal amount as at 31 August
105
                   
5,547
               
Current as at 31 August
(19)
                    
(14)
                    
Non-current as at 31 August
86
                     
5,533
               
FY23
FY22
Current portion of long term debt
19
                      
14
                      
Short-term borrowings
127
                   
164
                   
Payable related parties
-
                         
5,791
                
Payable Interogo Holding AG
2,265
                
-
                   
Accounts payable trade
1,796
                
2,422
                
Income taxes payable
124
                   
52
                     
Indirect tax payable
212
                   
217
                   
Payable staff
160
                   
144
                   
Derivatives liabilities
28
                     
17
                      
Accrued liabilities and deferred income
194
                   
240
                   
Other Liabilities
114
                    
119
                    
Total
5,039
               
9,180

Inter IKEA Holding B.V. Annual report FY23 
Page 40 of 58 
 
 
 
 
Credit risk  
Credit risk arises principally from the Company’s loans and receivables presented under financial 
fixed assets, trade and other receivables and cash and cash equivalents. The maximum amount 
of credit risk that the Company incurs is EUR 7,393 million (FY22: EUR 7,360 million), consisting of 
EUR 337 million (FY22: EUR 270 million) financial fixed assets, EUR 6,887 million (FY22: EUR 6,906 
million) trade and other receivables and EUR 169 million (FY22: EUR 184 million) cash and cash 
equivalents. The credit risk is concentrated to trade receivables for EUR 3,142 million (FY22: EUR 
3,326 million) which mainly consists of 12 franchisees. Long standing relationships exist with 
these counterparties. Furthermore, the Company holds notional account receivables of EUR 3,230 
million (FY22: EUR 2,889 million) on Interogo Holding AG.  
 
Credit risk mitigating aspects 
For derivatives traded with banking partners, there is a collateral management process where 
the net asset or liability value is exchanged in the form of cash collateral with each counterparty. 
At year-end 2023, EUR 139 million was received as collateral against the positive value of 
derivative contracts, EUR 256 million was delivered as collateral against the negative value of 
derivative contracts. 
 
Interest rate risk and cash-flow risk 
The Company runs an interest rate risk on interest bearing assets and liabilities. For assets and 
liabilities with variable interest rate agreements, the Company runs a risk of future cash flows 
relating to the interest element. For fixed interest rate loans the Company runs a fair value risk. 
 
The Company has liabilities and receivables with the following interest rates: 
- 
Receivable on Interogo Holding AG EUR 3,230 million (daily floating %, currency specific 
base rate minus 5 basis points with a floor of 0%); 
- 
Payable Interogo Holding AG EUR 2,265 million via notional account (daily floating %, 
currency specific base rate plus 60 basis points). 
 
Currency risk 
The Company is exposed to currency risk on: 
• 
Franchise fees: the franchise fees are partly earned outside of the Euro zone, where the 
euro is the Company’s reporting currency. From a reporting perspective, the Company is 
therefore exposed to the volatility of foreign exchange market. The currency risk run on 
the positions is limited, considering the amounts involved and regular settlements 
combined. 
• 
Goods flows: the Company is exposed to foreign exchange rate risks arising from 
purchase and sales of goods, freight and indirect materials and services transactions. The 
currencies in which these transactions primarily are denominated are CNY, PLN, GBP and 
USD. The Company’s exchange rate risk is actively managed by using derivatives 
contracts. 
 
At year-end 2023, the total net fair value of the derivatives used to manage exchange risk is 
EUR 134 million negative (FY22: EUR 228 million positive). 
 
Hedge accounting is applied with the impact of effective hedging taken to other comprehensive 
income of EUR 160 million gain (FY22: EUR 51 million loss). The results of derivatives which did not 
meet the hedging criteria are directly reported under result from hedges in the profit and loss 
account and amount to EUR 4 million loss (FY22: EUR 265 million gain).

Inter IKEA Holding B.V. Annual report FY23 
Page 41 of 58 
 
 
 
 
 
The strategy to mitigate the currency risk is centralised and managed by the separate Treasury 
function within the Group, which is responsible for mitigating the Group’s financial risks. Based 
on the forecasted business plan, the Treasury function determines and is responsible for the risk 
management strategy. As a consequence, the Company has opted to recognise the realised 
hedge results (gains and losses) in financial income and expenses. 
 
The Company applies derivatives, including currency options and forward exchange contracts to 
control its risks. A minimum of 80% of the forecasted foreign exchange exposure should be 
hedged within 2 months of setting fixed rates. 
 
In FY23, the result from hedging recognised in the profit and loss account amounted to a gain of 
EUR 118 million (FY22: gain of EUR 216 million). 
 
Liquidity Risk 
The Company monitors its cash position by using liquidity planning. Management ensures that 
the cash position and facilities are sufficient to meet the company’s financial obligations towards 
creditors. 
 
A non-collaterised credit facility from Interogo with a headroom of EUR 1.3 BEUR is available to 
the Company. At balance sheet date the credit facility is not being used.   
 
Fair value 
The fair value of most of the financial instruments stated on the balance sheet, including 
receivables, cash and cash equivalents and current liabilities, is approximately equal to their 
carrying amount.  
 
 
16. 
COMMITMENTS AND CONTINGENT LIABILITIES 
 
The commitments can be detailed as follows: 
 
Purchase commitments 
The Group has entered into purchase agreements with external suppliers for a total value of 
EUR 3,714 million at 31 August 2023 (FY22: EUR 5,556 million). These agreements have different 
remaining periods, ranging up to 9 years. 
 
IT Services commitments 
The Group has entered into IT services agreements. This agreement includes both ‘Agreed 
Services’, such as maintenance, operations and infrastructure and ‘Consultancy Services”. The 
commitment for the coming year for these agreements amounts to approximately EUR 62 million 
(FY22: EUR 77 million). 
 
Distribution Services Commitments 
The Group has entered into agreements covering the services for distribution. These agreements 
have different remaining periods, ranging from 1 to 10 years. The commitment for the coming 
years for the distribution services amounts to approximately EUR 2,993 million (FY22: EUR 3,092 
million).

Inter IKEA Holding B.V. Annual report FY23 
Page 42 of 58 
 
 
 
 
Construction commitments 
Commitments for the construction of tangible fixed assets amount to EUR 2 million at 31 August 
2023 (FY22: EUR 49 million.) 
 
Operating leases – Group as lessee 
The Company and its subsidiaries have entered into several other lease and rental agreements 
for various periods. Future minimum rental payable under non-cancellable operating leases as at 
31 August 2023 is as follows:  
 
 
 
Lease payments recognised as expenses in FY23 amount to EUR 25 million (FY22: EUR 23 million).  
 
The contingent liabilities can be detailed as follows: 
 
Guarantees 
Issued guarantees towards external parties amounted to EUR 193 million at 31 August 2023 (FY22: 
EUR 194 million), mainly relating to VAT receivable positions with the Italian tax authority.   
 
Litigation 
The Company is or may become involved in legal proceedings, as well as in investigations (see 
also note 11) and disputes with respect to (f.e.) tax, product liability and safety incidents. When no 
estimate can be made of the financial consequences, if any, or if the risk of a future cash outflow 
is less than probable, no provisions have been recognised in the balance sheet. Management 
believes, based on legal advice, that no pending litigation to which the Company is a party will 
have a material adverse effect on the financial position or the results from operations. 
 
Uncertain tax positions 
We refer to note 20 of the financial statements. 
 
 
17. 
OPERATING INCOME 
 
The breakdown of operating income by revenue categories is as follows: 
 
 
 
 
The geographical distribution of operating income is as follows: 
 
FY23
FY22
Sales of goods
27,443
             
26,148
             
Franchise fees
1,406
                
1,285
                
Other revenue
214
                   
145
                   
Total
29,063
            
27,578

Inter IKEA Holding B.V. Annual report FY23 
Page 43 of 58 
 
 
 
 
 
 
18. 
OPERATING EXPENSES 
 
Salaries and wages 
During FY23, the average number of staff employed with the Group, converted into full-time 
equivalents, amounted to 24,944 people (FY22: 27,331 people) of which 23,888 (FY22: 26,325) were 
employed outside the Netherlands.  
 
The staffing level can be divided into the following staff categories: 
 
 
Other operating expenses 
The main categories within the other operating expenses are IT (EUR 449 million), general 
administrative expenses (EUR 189 million), rent, maintenance and utilities (EUR 126 million), and 
other staff expenses (EUR 91 million). 
 
 
19. 
FINANCIAL INCOME AND EXPENSE 
 
The financial income and expense can be specified as follows: 
 
 
 
 
20. 
INCOME TAXES 
 
The applicable weighted average tax rate is 15.8% (FY22: 23.7%), following the nominal tax rates 
in the Netherlands, Sweden and Switzerland where the majority of the Group’s businesses are 
located. The effective tax rate decreased by 7.9% compared to the previous year. This is mainly 
due to increased profitability in Switzerland (which has a lower nominal tax rate) compared to the 
previous year when profitability was adversely impacted by sharp sourcing and logistic cost 
increases in the supply chain. The tax rate is in line with the effective tax rate in FY21 (16.0%.) 
FY23
FY22
The Netherlands
1,246
                
1,013
                
European Union
14,545
              
13,477
              
Rest of the world
13,272
              
13,088
             
29,063
            
27,578
             
FY23
FY22
Franchise
2,219
                
2,034
               
Range
3,083
               
2,956
                
Supply
19,452
              
22,168
             
Other functions
190
                   
173
                   
24,944
            
27,331
             
FY23
FY22
Interest income
93
                     
9
                        
Result from hedges
118
                   
216
                   
Other financial income
-
                         
25
                     
Total
211
                   
250
                   
Interest expense
507
                   
351
                   
Other financial expense
4
                        
2
                        
Total
511
                   
353

Inter IKEA Holding B.V. Annual report FY23 
Page 44 of 58 
 
 
 
 
  
The tax expense recognised in the profit and loss account for FY23 amounts to EUR 307 million 
(FY22: EUR 221 million). 
 
The reconciliation between the applicable and the effective tax rate is as follows: 
 
 
 
The Group has unrecognised tax loss carry forwards available related to losses incurred in several 
countries for approximately EUR 51 million (FY22: EUR 157 million). No deferred tax asset has been 
recognised for these tax loss carry forwards due to uncertainty with respect to availability of 
taxable profits in the future within the limitations imposed in enacted tax legislation. 
  
Uncertain tax positions 
Corporate income tax is actively addressed by international institutions and local governments 
and the taxation of large multinational companies receives continued media attention. The 
Company is also subject to tax audits in various geographies, and is working pro-actively with 
local tax authorities.  
 
In December 2017, the European Commission opened a formal investigation, with their Opening 
Decision published on 6 April 2018 which was complemented by their Decision published on 10 
July 2020, to examine whether decisions by the tax authorities in The Netherlands with regard to 
the corporate income tax paid by one of our subsidiaries, Inter IKEA Systems B.V., comply with 
European Union rules on state aid. The Company co-operates and responds to questions which 
the European Commission has in relation to this investigation. At this moment, although 
management considers the risk of a cash out flow unlikely, it is not possible to assess a financial 
impact, if any, of the outcome of this EC investigation. The aforementioned outcome is not 
expected to have a material adverse impact on the financial position of The Company. 
 
The Company is actively monitoring and addressing these developments and believes that its 
corporate income tax position is appropriately reflected in the financial statements.  
 
 
21. 
TRANSACTIONS WITH RELATED PARTIES 
 
Related party transactions not on an arm's length basis have not occurred. 
 
FY23
FY22
Result before tax
1,946
                
931
                   
Income tax using the applicable tax rate in the Netherlands
502
                   
240
                   
Tax effect of:
- Other applicable tax rates abroad
(158)
                  
(62)
                    
- Exempt income
(27)
                    
(5)
                      
- Non-deductible expenses
20
                     
9
                        
(De)recognition of tax losses
(14)
                    
36
                     
Adjustment for prior periods
(20)
                    
(12)
                    
Changes in tax rates
(2)
                      
2
                        
Non-reclaimable withholding tax
13
                      
19
                      
Other
(7)
                      
(6)
                      
Tax expenses
307
                   
221

Inter IKEA Holding B.V. Annual report FY23 
Page 45 of 58 
 
 
 
 
Shareholder 
Transactions between the Company and its shareholder(s) during the year have all occurred at 
arm’s length. As per 31 August 2023 the shareholder changed from Interogo Foundation and 
Interogo Holding AG to Inter IKEA Foundation. Significant transactions have been disclosed in 
notes 8, 13 and 19 of the consolidated financial statements and in note 5 of the Company financial 
statements. Over the course of FY23 411 MEUR of net interest was paid to the previous 
shareholders relating notional accounts and the shareholder loan. In FY23 1,850 MEUR of 
dividend was paid to the previous shareholders. 
 
Group companies 
Since the company exercises influence on the business and financial policy, all companies 
belonging to the Group are treated as related parties. 
 
The remuneration of the managing directors and supervisory directors is included in note 7 of 
the Company financial statements. 
 
 
22. 
AUDITOR’S FEES 
 
The following fees were charged by KPMG Accountants N.V. to the company, its subsidiaries and 
other consolidated companies, as referred to in Section 2:382a(1) and (2) of the Netherlands Civil 
Code.  
 
 
 
The fees mentioned in the table for the audit of the FY23 financial statements relate to the total 
fees for the audit of the FY23 financial statements, irrespective of whether the activities have been 
performed during FY23. 
 
 
23. 
SUBSEQUENT EVENTS 
 
There are no significant subsequent events. 
 
 
KPMG
Other
Accountants
KPMG
Total 
EUR x 1,000
N.V.
Network
KPMG
Audit of financial statements
1,711
                 
2,029
               
3,740
               
Other audit engagements
582
                   
158
                   
740
                   
Tax-related advisory
-
                         
242
                   
242
                   
Other non-audit services
246
                   
258
                   
504
                   
2,539
               
2,687
               
5,226

Inter IKEA Holding B.V. Annual report FY23 
Page 46 of 58 
 
 
 
 
COMPANY BALANCE SHEET AS AT 31 AUGUST 2023 
(before profit appropriation, in millions of EUR) 
 
 
 
(See accompanying notes) 
 
COMPANY PROFIT AND LOSS ACCOUNT FY23 
(in millions of EUR) 
 
 
 
(See accompanying notes) 
 
 
FY23
FY22
Fixed assets
Financial fixed assets (3)
12,069
                                 
11,565
                                 
Total fixed assets
12,069
                               
11,565
                               
Current assets
Receivables (4)
5,695
                                  
25
                                        
Total current assets
5,695
                                 
25
                                        
TOTAL ASSETS
17,764
                     
11,590
                     
Shareholder's equity
Additional paid in capital
15,865
                                 
7,565
                                   
Other legal reserves
(15)
                                       
49
                                        
Other reserves
269
                                      
1,523
                                   
Result for the year
1,639
                                   
710
                                       
Total shareholder's equity (5)
17,758
                               
9,847
                                 
Current liabilities
6
                                          
1,743
                                  
TOTAL SHAREHOLDER'S EQUITY AND LIABILITIES
17,764
                     
11,590
                     
FY23
FY22
Share in net result from part. interests
1,700
                                   
715
                                       
Other results, net of income taxes
(61)
                                       
(5)
                                         
Net result
1,639
                                 
710

Inter IKEA Holding B.V. Annual report FY23 
Page 47 of 58 
 
 
 
 
NOTES TO COMPANY FINANCIAL STATEMENTS 
 
 
1. 
GENERAL 
 
The separate financial statements are part of the FY23 statutory financial statements of the 
Company. The financial information of the Company is included in the Company’s consolidated 
financial statements. 
 
If no further explanation is provided of items in the separate balance sheet and the separate 
profit and loss account, please refer to the notes to the consolidated balance sheet and profit and 
loss account. 
 
 
2. 
ACCOUNTING POLICIES 
 
The principles for the valuation of assets and liabilities and the determination of the result are 
the same as those applied to the consolidated financial statements, with the exception of the 
following principles:  
 
Participating interests in group companies 
Participating interests where significant influence can be exercised over the business and 
financial policy, are valued according to the equity method on the basis of net asset value. If 
measurement at net asset value is not possible because the information required for this cannot 
be obtained, the participating interest is measured according to the visible equity.  
 
The net asset value is calculated on the basis of the Company’s accounting policies. If the 
Company transfers an asset or a liability to a participating interest that is measured according to 
the equity method, the gain or loss resulting from this transfer is recognised to the extent of the 
relative interests of third parties in the participating interest (proportionate determination of 
result). Any loss that results from the transfer of current assets or an impairment of fixed assets 
is fully recognised. Results on transactions involving transfer of assets and liabilities between the 
Company and its participating interests and mutually between participating interests are 
eliminated to the extent that these cannot be regarded as having been realised.  
 
Participating interests with a negative net asset value are valued at nil. This measurement also 
covers any long-term receivables on the participating interests that are, in substance, an 
extension of the net investment. In particular, this relates to loans for which settlement is neither 
planned nor likely to occur in the foreseeable future. A share in the profits of the participating 
interest in subsequent years will only be recognised if and to the extent that the cumulative 
unrecognised share of loss has been absorbed. If the company fully or partially guarantees the 
debts of the relevant participating interest, or if has the constructive obligation to enable the 
participating interest to pay its debts (for its share therein), then a provision is recognised 
accordingly to the amount of the estimated payments by the Company on behalf of the 
participating interest.

Inter IKEA Holding B.V. Annual report FY23 
Page 48 of 58 
 
 
 
 
Shareholders’ equity 
As per year end, the financial instruments that have the legal form of equity, are presented in the 
equity of the separate financial statements. Refer to the accounting policies of the consolidated 
financial statements for accounting policies applied. 
 
Share of result of participating interests 
The share in the result of participating interests concerns the Company’s share in the results of 
the participating interests.  
 
If the Company transfers an asset or a liability to a participating interest that is measured 
according to the equity method, the gain or loss resulting from this transfer is recognised to the 
extent of the relative interests of third parties in the participating interest (proportionate 
determination of result). Any loss that results from the transfer of current assets or an 
impairment of fixed assets is fully recognised. Results on transactions involving transfer of assets 
and liabilities between the Company and its participating interests and mutually between 
participating interests are eliminated to the extent that these cannot be regarded as having been 
realised.  
 
The results of participating interests acquired or sold during the financial year are stated in the 
consolidated result from the date of acquisition or until the date of sale respectively. 
 
Corporate income tax 
The Company is the head of the fiscal unity. The Company recognises the portion of corporate 
income tax that it would owe as an independent tax payer, taking into account the allocation of 
the advantages of the fiscal unity. Settlement within the fiscal unity between the Company and 
its subsidiaries takes place through current account positions.  
 
 
3. 
FINANCIAL FIXED ASSETS 
 
The movement in financial fixed assets is as follows: 
 
 
 
In accordance with article 403, Book 2 of the Dutch Civil Code, the Company has guaranteed the 
liabilities of Inter IKEA Systems B.V., Inter IKEA Assets B.V., Inter IKEA Developments Holding B.V., 
Inter IKEA Development B.V., Inter IKEA Treasury B.V. and IKEA Social Entrepreneurship B.V. 
Long term 
loans 
receivable
Investm.
In part.
Interests
Deferred tax 
asset
Total
Balance as at 31 August 2022:
11,785
11,562
                
3
                          
11,565
                
Investments
38
145
                      
-
                           
145
                      
Additions
0
-
                           
19
                        
19
                        
Share in result of participating interests
715
1,700
                  
-
                           
1,700
                  
Dividends received
-992
(1,179)
                 
-
                           
(1,179)
                 
Exchange rate differences
0
(97)
                      
-
                           
(59)
                      
Remeasurement IAS19
0
(6)
                         
-
                           
(6)
                         
Change in unrealised result derivatives
0
(109)
                    
-
                           
(109)
                    
Realized exchange rate results
38
                       
Other
16
(7)
                         
-
                           
(7)
                         
Balance as at 31 August 2023:
11,562
12,047
               
22
                        
12,069

Inter IKEA Holding B.V. Annual report FY23 
Page 49 of 58 
 
 
 
 
Company financial statements of these subsidiaries are therefore not filed at the Trade Register 
of the Chamber of Commerce.  
 
For an overview of capital interests, reference is made to the listing of subsidiaries that has been 
filed by the Company at the Chamber of Commerce. 
 
 
4. 
RECEIVABLES 
 
 
 
The receivables all have an estimated maturity shorter than one year.  
 
 
5. 
SHAREHOLDERS’ EQUITY 
 
 
 
Issued capital 
The Company’s issued and outstanding share capital is comprised of 126 shares, each with a par 
value of EUR 1,000. The issued and paid-up share capital consists of 1 share class “A” and 125 
shares class “B”. 
FY23
FY22
Income tax receivable
18
                        
15
                        
Receivable on participating interests
5,575
                  
10
                        
Other receivables
102
                     
-
                           
Total
5,695
                 
25
                        
Share
Legal
Transl.
Other
Unappr.
premium
reserve
reserve
reserve
profit
Total
Balance as at 31 August 2021
7,565
         
128
             
(46)
             
1,035
         
1,433
         
10,115
        
Changes in financial year 2022:
Appropriation of result
-
                  
-
                  
-
                  
1,433
          
(1,433)
        
-
                  
Net result
-
                  
-
                  
-
                  
-
                  
710
             
710
             
Dividend paid
-
                  
-
                  
-
                  
(1,000)
        
-
                  
(1,000)
        
Transfer to / from legal reserve
-
                  
(71)
              
-
                  
71
                
-
                  
-
                  
Change in unrealised result derivatives
-
                  
-
                  
-
                  
(25)
             
-
                  
(25)
             
Remeasurements of defined benefit pensions plans
-
                  
-
                  
-
                  
7
                 
-
                  
7
                 
Exchange rate differences
-
                  
-
                  
38
               
-
                  
-
                  
38
               
Other
-
                  
-
                  
-
                  
3
                 
-
                  
3
                 
Balance as at 31 August 2022
7,565
         
57
               
(8)
                
1,523
         
710
             
9,847
         
Changes in financial year 2023:
Appropriation of result
-
                  
-
                  
-
                  
710
             
(710)
            
-
                  
Net result
-
                  
-
                  
-
                  
-
                  
1,639
          
1,639
          
Share premium
8,300
         
8,300
         
Dividend paid
-
                  
-
                  
-
                  
(1,850)
        
-
                  
(1,850)
        
Transfer to / from legal reserve
-
                  
(5)
                
-
                  
5
                 
-
                  
-
                  
Change in unrealised result derivatives
-
                  
-
                  
-
                  
(109)
            
-
                  
(109)
            
Remeasurements of defined benefit pensions plans
-
                  
-
                  
-
                  
(6)
                
-
                  
(6)
                
Exchange rate differences
-
                  
-
                  
(97)
              
-
                  
-
                  
(97)
              
Realized exchange rate results
-
                  
-
                  
38
               
-
                  
-
                  
38
               
Other
-
                  
-
                  
-
                  
(4)
                
-
                  
(4)
                
Balance as at 31 August 2023
15,865
       
52
               
(67)
              
269
            
1,639
         
17,758

Inter IKEA Holding B.V. Annual report FY23 
Page 50 of 58 
 
 
 
 
 
During the year, an ownership change took place and all shares were transferred from Interogo 
Foundation and Interogo Holding AG to Inter IKEA Foundation. Inter IKEA Foundation is at balance 
sheet date the Company’s 100% shareholder and ultimate owner. 
 
Share premium 
The share premium concerns the income from the issuing of shares in so far as this exceeds the 
nominal value of the shares (above par income). This also includes additional capital contributions 
by existing shareholders without the issue of shares or issue of rights to acquire shares of the 
Company.  
 
In FY23, the Company received a capital contribution of EUR 8.3 billion from its shareholder Inter 
IKEA Foundation. 
 
Legal reserve 
Other legal reserves mainly consist of a legal reserve for non-distributable profits in accordance 
with local legislation. 
 
Translation reserve 
Exchange gains and losses arising from the translation of the functional currency of foreign 
operations to the reporting currency of the parent are accounted for in this legal reserve. In the 
case of the sale of a participating interest, the associated accumulated exchange differences are 
transferred to the profit and loss account. The translation legal reserve of EUR -67 million (FY22: 
EUR -8 million) relates to investments in participating interests in various countries.  
 
Other reserves 
The financial statements for the reporting year 2023 have been adopted by the General Meeting 
on 2 November 2023. The General Meeting has adopted the appropriation of profit after tax as 
proposed by the Board of Management. 
 
A final dividend for FY22 (EUR 850 million) and an interim dividend for FY23 (EUR 1 billion) were 
paid to Interogo Holding AG during the year. These amounts have been deducted from the other 
reserves in shareholders’ equity.  
 
Unappropriated profit 
The General Meeting of Shareholders will be asked to approve the following appropriation of the 
FY23 net result: to add the net result to the other reserves.  
The Company can only make payments to the shareholders and other parties entitled to the 
distributable profit in so far as (1) the Company can continue to pay its outstanding debts after 
the distribution (the so-called distribution test), and (2) the shareholders’ equity exceeds the legal 
reserves and statutory reserves under the articles of association to be maintained (the so-called 
balance sheet test). If not, the Company’s management shall not approve the distribution.

Inter IKEA Holding B.V. Annual report FY23 
Page 51 of 58 
 
 
 
 
6. 
OFF BALANCE SHEET ASSETS AND LIABILITIES 
 
Fiscal Unity 
The Company forms a fiscal unity for corporate income tax purposes together with Inter IKEA 
Systems B.V., Inter IKEA Assets B.V., Inter IKEA Developments Holding B.V., Inter IKEA 
Development B.V., Inter IKEA Treasury B.V. and IKEA Social Entrepreneurship B.V.  
 
Guarantees 
Reference is made to Note 3. of the financial fixed assets with respect to guarantees provided to 
various subsidiaries according to article 403, Book 2 of the Dutch Civil Code. 
 
 
7. 
REMUNERATION MANAGEMENT AND SUPERVISORY BOARD 
 
The emoluments, including pension costs as referred to in Section 2:383(1) of the Netherlands 
Civil Code, charged in the financial year to the company, its subsidiaries and consolidated other 
companies amounted to EUR 3.4 million (FY22: EUR 2.7 million) for previous and current 
management board members, and EUR 0.5 million (FY22: EUR 0.5 million) for supervisory board 
members. 
 
 
8. 
SUBSEQUENT EVENTS 
 
There are no significant subsequent events.

Inter IKEA Holding B.V. Annual report FY23 
Page 52 of 58 
 
 
 
 
MANAGEMENT BOARD 
 
 
SUPERVISORY BOARD 
 
 
 
 
 
 
Jon Abrahamsson Ring (Chairman) 
 
Anders Dahlvig (Chairman) 
 
 
 
 
 
Martin van Dam 
 
 
Søren Hansen 
 
 
 
 
 
Henrik Elm 
 
 
 
Mathias Kamprad 
 
 
 
 
 
Véronique Laury 
 
 
 
 
 
John Olie 
 
 
 
 
 
Aline Santos 
 
 
 
 
 
 
 
Delft, 2 November 2023

Inter IKEA Holding B.V. Annual report FY23 
Page 53 of 58 
 
 
 
 
OTHER INFORMATION 
 
Articles of association relating to the allocation of the result 
 
In accordance with its Articles of Association, the Company keeps a Dividend Reserve A and a 
Dividend Reserve B. Holders of class A are entitled to Dividend Reserve A and holders of class B 
are entitled to Dividend Reserve B. In accordance with Article 4.1.2 of the Articles of Association, 
5% of the total aggregate par value of the class A shares is added to the Dividend Reserves A and 
the remainder is added to dividend reserve B.

Inter IKEA Holding B.V. Annual report FY23 
Page 54 of 58 
 
 
 
 
Independent auditor's report 
To: the General Meeting of Inter IKEA Holding B.V. 
Report on the audit of the accompanying financial statements 
Our opinion 
We have audited the financial statements for the year ended as at 31 August 2023 of Inter IKEA 
Holding B.V. (hereafter also referred to as ‘the Company’), based in Delft. 
In our opinion the accompanying financial statements give a true and fair view of the financial 
position of Inter IKEA Holding B.V. as at 31 August 2023 and of its result for the year ended on 31 
August 2023 in accordance with Part 9 of Book 2 of the Dutch Civil Code. 
The financial statements comprise: 
1 
the consolidated and company balance sheet as at 31 August 2023; 
2 
the consolidated and company profit and loss account for the year ended on 31 August 
2023; 
3 
the consolidated cash flow statement for the year ended on 31 August 2023; 
4 
the consolidated statement of comprehensive income for the year ended on 31 August 2023; 
and 
5 
the notes comprising a summary of the accounting policies and other explanatory 
information. 
Basis for our opinion 
We conducted our audit in accordance with Dutch law, including the Dutch Standards on 
Auditing. Our responsibilities under those standards are further described in the 'Our 
responsibilities for the audit of the financial statements' section of our report. 
We are independent of Inter IKEA Holding B.V. in accordance with the ‘Wet toezicht 
accountantsorganisaties’ (Wta, Audit firms supervision act), the 'Verordening inzake de 
onafhankelijkheid van accountants bij assurance-opdrachten' (ViO, Code of Ethics for 
Professional Accountants, a regulation with respect to independence) and other relevant 
independence regulations in the Netherlands. Furthermore, we have complied with the 
'Verordening gedrags- en beroepsregels accountants' (VGBA, Dutch Code of Ethics). 
We designed our audit procedures in the context of our audit of the financial statements as a 
whole and in forming our opinion thereon. The information in respect of fraud and non-
compliance with laws and regulations and going concern was addressed in this context, and we 
do not provide a separate opinion or conclusion on these matters. 
We believe the audit evidence we have obtained is sufficient and appropriate to provide a basis 
for our opinion. 
Information in support of our opinion 
Audit response to the risk of fraud and non-compliance with laws and regulations 
In the paragraph ‘Risk management’ of the annual report, the Management Board describes its 
procedures in respect of the risk of fraud and non-compliance with Iaws and regulations.

Inter IKEA Holding B.V. Annual report FY23 
Page 55 of 58 
 
 
 
 
As part of our audit, we have gained insights into the Company and its business environment, 
and assessed the design and implementation of the Company's risk management in reIation to 
fraud and non-compliance. Our procedures included, among other things, assessing the 
Company's code of conduct, the whistle blowing procedures, the compliance poIicy and its 
procedures to investigate indications of possible fraud and non-compIiance. 
Furthermore, we performed reIevant inquiries with the Management Board, Audit Committee 
and other reIevant functions, such as LegaI CounseI, Internal Audit and Risk and Compliance. As 
part of our audit procedures, we: 
— obtained an understanding of how the company uses information technology (IT) and the 
impact of IT on the financial statements, including the potential for cybersecurity incidents to 
have a material impact on the financial statements;  
— evaluated possible correspondence with supervisory authorities and regulators as well as 
legal confirmation letters. 
In addition, we performed procedures to obtain an understanding of the legal and regulatory 
frameworks that are applicable to the Company and identified the following areas as those 
most likely to have a material effect on the financial statements: anti-bribery and corruption, 
trade sanctions and export controls and product risk and safety compliance. 
As part of our yearly risk assessment, we, together with our forensic specialist, evaIuated the 
fraud and non-compliance risk factors to consider whether those factors indicate a risk of 
material misstatement in the financial statements. 
Based on the above and on the auditing standards, the following presumed fraud risks are 
relevant to our audit and we responded as follows: 
 
Management override of controls (a presumed risk) 
Risk: 
We addressed the inherent risk of management override of controls. This risk relates to 
presumed bias by management in making significant estimates and judgements as well as 
recording high risk (manual) journal entries that may represent a risk of material misstatement 
of the financial statements due to fraud.  
 
Responses: 
We have performed, amongst others, the following procedures: 
— evaluated the design and the implementation of internal controls that mitigate fraud risks, 
such as internal control measures related to non-routine journal entries and significant 
accounting estimates; 
— performed data analysis of high-risk journal entries. If instances of unexpected journal 
entries or other risks through our data analytics were identified, we performed additional audit 
procedures to address each identified risk, including testing of transactions back to source 
information;  
— evaluated key estimates and judgements for bias by management, including retrospective 
review prior year’s estimates, for example valuation of inventories and impairment tests; and

Inter IKEA Holding B.V. Annual report FY23 
Page 56 of 58 
 
 
 
 
— incorporated elements of unpredictability in our audit, which varied for each of the entities in 
scope. 
Our audit procedures did not reveal indications of fraud or suspicion of fraud in respect of 
management override of controls that are considered material for our audit. 
 
Revenue recognition (a presumed risk) 
Risk: 
We addressed the inherent risk of fraud in revenue recognition. This relates to the presumed 
management incentive that exists to overstate revenue. We considered that the risk of fraud in 
revenue recognition is focused on the cut-off period before year-end. 
Responses: 
We have performed, amongst others, the following procedures: 
— determined and evaluated the design and implementation of the process levels controls 
(including anti-fraud controls) as implemented by management with respect to revenue 
recognition and cut-off of revenue; 
— performed test of details over the cut-off of revenue at year-end by determining the 
fulfilment of performance obligations based on agreements and underlying supporting 
documentation; and 
— performed journal entry testing, especially taking into account high-risk criteria in relation to 
revenues and journal entries that increase revenue, including testing of transactions back to 
source information. 
 
Our audit procedures did not reveal indications of fraud or suspicion of fraud in respect of 
revenue recognition that are considered material for our audit. 
We communicated our risk assessment, audit responses and results to the Management Board 
and Audit Committee. 
Audit response to going concern 
Management Board has performed its going concern assessment and has not identified any 
going concern risks. To assess the Management Board’s assessment, we have performed, 
amongst others, the following procedures: 
— we considered whether the Management Board’s assessment of the going concern risks 
includes all relevant information of which we are aware as a result of our audit and we have 
inquired the Management Board on the key assumptions and principles underlying the 
Management Board’s assessment of going concern risks; 
— we evaluated the key assumptions and the sensitivity analyses used by the Management 
Board for the cash-flow forecasts and liquidity management; and 
— we evaluated the Company’s financial position as at year-end and compared it to previous 
years, developments in the business and any information of which we are aware as a result of 
our audit.

Inter IKEA Holding B.V. Annual report FY23 
Page 57 of 58 
 
 
 
 
The outcome of our risk assessment procedures did not give reason to perform additional audit 
procedures on management’s going concern assessment. 
Report on the other information included in the annual report 
In addition to the financial statements and our auditor's report thereon, the annual report 
contains other information. 
Based on the following procedures performed, we conclude that the other information: 
— is consistent with the financial statements and does not contain material misstatements; 
— contains all the information regarding the management report and the other information as 
required by Part 9 of Book 2 of the Dutch Civil Code. 
We have read the other information. Based on our knowledge and understanding obtained 
through our audit of the financial statements or otherwise, we have considered whether the 
other information contains material misstatements. 
By performing these procedures, we comply with the requirements of Part 9 of Book 2 of the 
Dutch Civil Code and the Dutch Standard 720. The scope of the procedures performed is less 
than the scope of those performed in our audit of the financial statements. 
The Management Board is responsible for the preparation of the other information, including 
the management report, in accordance with Part 9 of Book 2 of the Dutch Civil Code, and other 
information as required by Part 9 of Book 2 of the Dutch Civil Code. 
Description of the responsibilities for the financial statements 
Responsibilities of the Management Board and the Supervisory Board for the financial 
statements 
The Management Board is responsible for the preparation and fair presentation of the financial 
statements in accordance with Part 9 of Book 2 of the Dutch Civil Code. Furthermore, the 
Management Board is responsible for such internal control as the Management Board 
determines is necessary to enable the preparation of the financial statements that are free from 
material misstatement, whether due to fraud or error. 
As part of the preparation of the financial statements, the Management Board is responsible for 
assessing the company's ability to continue as a going concern. Based on the financial reporting 
framework mentioned, the Management Board should prepare the financial statements using 
the going concern basis of accounting unless the Management Board either intends to liquidate 
the Company or to cease operations, or has no realistic alternative but to do so. The 
Management Board should disclose events and circumstances that may cast significant doubt 
on the company's ability to continue as a going concern in the financial statements. 
The Supervisory Board is responsible for overseeing the company's financial reporting process. 
Our responsibilities for the audit of the financial statements 
Our objective is to plan and perform the audit engagement in a manner that allows us to obtain 
sufficient and appropriate audit evidence for our opinion. 
Our audit has been performed with a high, but not absolute, level of assurance, which means 
we may not have detected all material errors and fraud during our audit.

Inter IKEA Holding B.V. Annual report FY23 
Page 58 of 58 
 
 
 
 
Misstatements can arise from fraud or errors and are considered material if, individually or in 
the aggregate, they could reasonably be expected to influence the economic decisions of users 
taken on the basis of the financial statements. The materiality affects the nature, timing and 
extent of our audit procedures and the evaluation of the effect of identified misstatements on 
our opinion. 
We have exercised professional judgement and have maintained professional scepticism 
throughout the audit, in accordance with Dutch Standards on Auditing, ethical requirements 
and independence requirements. Our audit included among others: 
— identifying and assessing the risks of material misstatement of the financial statements, 
whether due to errors or fraud, designing and performing audit procedures responsive to 
those risks, and obtaining audit evidence that is sufficient and appropriate to provide a basis 
for our opinion. The risk of not detecting a material misstatement resulting from fraud is 
higher than for one resulting from errors, as fraud may involve collusion, forgery, 
intentional omissions, misrepresentations, or the override of internal control; 
— obtaining an understanding of internal control relevant to the audit in order to design audit 
procedures that are appropriate in the circumstances, but not for the purpose of expressing 
an opinion on the effectiveness of the Company's internal control; 
— evaluating the appropriateness of accounting policies used and the reasonableness of 
accounting estimates and related disclosures made by the Management Board; 
— concluding on the appropriateness of management's use of the going concern basis of 
accounting and based on the audit evidence obtained, whether a material uncertainty exists 
related to events or conditions that may cast significant doubt on the Company's ability to 
continue as a going concern. If we conclude that a material uncertainty exists, we are 
required to draw attention in our auditor's report to the related disclosures in the financial 
statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions 
are based on the audit evidence obtained up to the date of our auditor's report. However, 
future events or conditions may cause the company ceasing to continue as a going concern; 
— evaluating the overall presentation, structure and content of the financial statements, 
including the disclosures; and 
— evaluating whether the financial statements represent the underlying transactions and 
events in a manner that achieves fair presentation. 
We are solely responsible for the opinion and therefore responsible to obtain sufficient 
appropriate audit evidence regarding the financial information of the entities or business 
activities within the group to express an opinion on the financial statements. In this respect we 
are also responsible for directing, supervising and performing the group audit. 
We communicate with those charged with governance regarding, among other matters, the 
planned scope and timing of the audit and significant audit findings, including any significant 
findings in internal control that we identify during our audit. 
Amstelveen, 2 November 2023 
KPMG Accountants N.V. 
R.J. Aalberts RA