1. growing IKEA Together © Inter IKEA Systems B.V. 2011 IKEA & Global Compliance Alex Chen & Alexandra Spiridoulias

2. growing IKEA Together © Inter IKEA Systems B.V. 2011 © Inter IKEA Systems B.V. 2008 To create a better everyday life for the many people.

3. growing IKEA Together © Inter IKEA Systems B.V. 2011 © Inter IKEA Systems B.V. 2008 We shall offer a wide range of well-designed, functional home furnishing products at prices so low that as many people as possible will be able to afford them.

4. growing IKEA Together © Inter IKEA Systems B.V. 2011 All over the world  OUR RANGE 9.500 articles developed by IKEA of Sweden.  IKEA GROUP Last year the IKEA Group had operations in 41 countries. 29 Trading Service Offices in 25 countries, 27 Distribution Centers and 11 Customer Distribution Centers in 16 countries.

5. growing IKEA Together © Inter IKEA Systems B.V. 2011 All over the world  IKEA STORES 325 stores in 38 countries. In addition 45 IKEA franchise stores in 26 Countries/territories.  IKEA VISITORS Last year the IKEA Group stores had 626 million visitors and the IKEA websites had 712 million visits.  IKEA SUPPLIERS Last year IKEA had 1,074 suppliers in 55 countries.

6. growing IKEA Together © Inter IKEA Systems B.V. 2011 IKEA & Global Compliance  How does IKEA work with global compliance in more than 30 countries? ― Product Requirement & Compliance Specialists Alexandra Spiridoulias – Canada Alex Chen - China

7. growing IKEA Together © Inter IKEA Systems B.V. 2011 Agenda  Law Information – how IKEA retail countries provide IKEA of Sweden with local country requirements  Testing – how IKEA of Sweden takes the local country information and implements into IKEA products  Asia article number – to secure the fulfillment of demands in all markets  Market interventions – how IKEA of Sweden/Retail Countries deal with products that do not comply or may present a safety issue

8. growing IKEA Together © Inter IKEA Systems B.V. 2011 Law Information  How does it all begin? ― Law Information reports coming in from the Specialists in each country ― Common report is used by all countries — Issuer — Country involved — Law/regulation/standard involved — Summary of the new/upcoming change — Assessment

9. growing IKEA Together © Inter IKEA Systems B.V. 2011 Develop IKEA basic product requirements  Laws, standards and requirements in our sales countries.  Specialists SO/DS  NGO´s  Consumer  Authorities  Legislation  Standardisation IKEA of Sweden Business Area IKEA Of Sweden Product Requirement &Complianc e Trading /Supplier

10. growing IKEA Together © Inter IKEA Systems B.V. 2011 IKEA Basic Product Requirements  IKEA Specifications — Material — Product Requirements General — Product Requirements Furniture — Test Methods — IKEA of Sweden Guide — Packaging — Marking

11. growing IKEA Together © Inter IKEA Systems B.V. 2011 Standardization  Globally – 11 countries are participating  IKEA Canada Participates in: –CAC - Canadian Advisory Committee… –CSA – Canada Standards Association –ASTM International –ICPHSO

12. growing IKEA Together © Inter IKEA Systems B.V. 2011 Standardization  IKEA China Participates in: −Furniture Standardization Committee (SAC/TC480) −Textile Standardization Committee (SAC/TC209) −China Hygiene Inspection Association (Food- contact & Cosmetic) −Toy/Children Standardization Committee (SAC/TC253)

13. growing IKEA Together © Inter IKEA Systems B.V. 2011 Standardization IKEA Standardization Work in China Director Communication member Secretary-general Technical member Deputy Director Drafting/change standards. Voting. Give input, Get early info. No voting IKEA participation

14. growing IKEA Together © Inter IKEA Systems B.V. 2011 Testing  IKEA Test Lab (Sweden): − Accredited according ISO 17025 by SWEDAC − Performing product development and risk assessments

15. growing IKEA Together © Inter IKEA Systems B.V. 2011 Testing  IKEA Testing Lab & Training Center (China): −CNAS, CPSC approved −Continue development of new test methods −Performing Developing, Production and Verifying tests

16. growing IKEA Together © Inter IKEA Systems B.V. 2011 Testing  IKEA also requests verification testing by 3 rd party accredited laboratories − IKEA laboratories do not have the capacity to test the full range every year − If a country has a specific legal requirement on a specific product, that product will be tested in a lab in that country

17. growing IKEA Together © Inter IKEA Systems B.V. 2011 Asian Article Number  One IKEA range on a global market, how do we comply worldwide? − Asian article numbers were developed because to meet country or regional legislation demands regarding marking − Used within IKEA since 2008 on Asian markets

18. growing IKEA Together © Inter IKEA Systems B.V. 2011 Market Follow-up  How do we report safety deviations to IKEA of Sweden? − Global Alarm Reporting System − Corrective Actions – E.g. Recall Detect and describe Assessment Immediate corrective action Define cause Corrective action Follow-up Take Learning's

19. growing IKEA Together © Inter IKEA Systems B.V. 2011 Market intervention  Market Intervention decided and coordinated by IKEA of Sweden − Primary goal is to maximize customer awareness of a product defect or hazard − Aim is to warn customers and prevent further incidents

20. growing IKEA Together © Inter IKEA Systems B.V. 2011 Market intervention IKEA of Sweden  Decide on action  Form the Recall Team  Create time plan  Prepare the information that is to be communicated  Co-ordinate the action between all countries  Follow-up and evaluate effectiveness of actions  Take learning's and share within organization IKEA retail counties  Receiving info from IKEA of Sweden  Identifying contact person  Assembling team in retail  Notification to local authorities  Work that needs to be completed in short period of time  Launching of recall  Monthly reporting  Follow-up

21. growing IKEA Together © Inter IKEA Systems B.V. 2011 Recall  Global IKEA recall − FÖRSTÅ coffee/tea maker

22. growing IKEA Together © Inter IKEA Systems B.V. 2011 Recall  Recalls that do not involve all markets − ELGÅ FENSTAD sliding door

23. growing IKEA Together © Inter IKEA Systems B.V. 2011 당신을 감사하십시오 Tack Thank you 谢谢