
Intangible fixed assets
In general terms, fixed assets are business property intended for long-term use. Intangible fixed assets are assets that lack physical form like patents, concepts and intellectual property. Intangible fixed assets form much of Inter IKEA Group overall assets.Most Inter IKEA Group intangible fixed assets are so-called proprietary rights for the IKEA trademarks and intellectual property. These rights were acquired for EUR 11.8 billion. As these rights are expected to provide a positive return over a long period of time, these costs are spread over a period of 45 years.
Tangible fixed assets
Tangible fixed assets include real estate and equipment that you can physically touch and feel. Inter IKEA Group tangible fixed assets are mainly factories and distribution centres.
Inter IKEA Group owns several offices and distribution centres, the IKEA Delft store, the IKEA Hotell and Museum, and around 42 factories. Most of the factories are located in Europe. The majority produce IKEA furniture, and two produce components like screws and wooden dowels used to assemble IKEA furniture.
This year new owners took over the Inter IKEA Group manufacturing facilities in Danville, USA and Konstantynow, Poland. The Konstantynow facility continues to supply IKEA customers with chairs made of solid wood.
Inventories and receivables
Inventories mostly consist of IKEA products in warehouses. Inventories reduced dramatically when stores re-opened after the lockdown. While the supply chain mobilised quickly, it took several weeks to restart production and address logistics challenges.

This year Inter IKEA Group supported franchisees by delaying payment obligations for goods sold. The company also extended loans to several IKEA suppliers to ensure they could re-start production after the lockdowns. Money owed under these agreements are reflected in this year’s receivables.
Group equity, provisions and liabilities
Equity is the capital invested by shareholders of the Inter IKEA Group plus accumulated profits over time. Equity increased with EUR 1.2 billion during FY20.
Of the EUR 1,731 million profit achieved during FY20, EUR 850 million will be distributed as a dividend to Interogo Holding AG, a holding company that is fully owned by the Interogo Foundation. The remaining EUR 881 million will be added to Inter IKEA Group equity.
Provisions are money set aside for pension commitments, deferred taxes and claims. Provisions decreased this year as a result of the changed funding for the IKEA of Sweden AB pension scheme.
Liabilities are money owed to others. Most Inter IKEA Group non-current liabilities, which are due over a long period of time, consist of loans from Interogo Holding AG (a non-controlling shareholder). As in FY19, Inter IKEA Group will continue to repay EUR 500 million each year. Current liabilities are short-term loans, money due to suppliers and the current portion of long-term loans from Interogo Holding AG.
Inter IKEA Group FY20 year in review
FY20 financial results