JANUARY MARCH 2017 BURBERRY. AUTHENTIC BRITISH HERITAGE Rooted in outerwear Made in UK ONE GLOBAL BRAND

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1 JANUARY MARCH 20 BURBERRY AUTHENTIC BRITISH HERITAGE Rooted in outerwear Made in UK ONE GLOBAL BRAND DIVERSIFIED BUSINESS MODEL By region and product BROAD CONSUMER APPEAL Across genders and generations Core luxury and millennial consumer AMBITIOUS GROWTH AND PRODUCTIVITY AGENDA STRONG FINANCIAL POSITION 1

2 REVENUE BY CHANNEL WHOLESALE: 25% LICENSING: 1% RETAIL: 74% FY 2015 % FY 2016 % H1 2016/ % RETAIL WHOLESALE* 1 (2) (14) LICENSING - (33) (54) 11 (1) (4) RETAIL COMPS 9% (1%) 0% Q3 2016/ 3% H1 2016/ REVENUE 1,159M UNDERLYING REVENUE GROWTH * FY 2015 EXCLUDES 5M OF BEAUTY SALES, INCLUDING BEAUTY SALES, WHOLESALE REVENUE INCREASED BY 6% UNDERLYING REVENUE BY PRODUCT DIVISION AND REGION BEAUTY: 7% % DECLINE CHILDRENS: 4% 9% GROWTH MENS: 24% UNCHANGED ACCESSORIES: 37% 1% DECLINE AMERICAS: 24% 12% DECLINE ASIA PACIFIC: 36% 1% DECLINE WOMENS: 28% 6% DECLINE EMEIA: 35% 40% 5% 1% GROWTH H1 2016/ RETAIL/WHOLESALE REVENUE 1,146M % GROWTH ON UNDERLYING BASIS 2

3 CHANGING LUXURY ENVIRONMENT 200BN LUXURY MARKET STILL GROWING 7% average annual sector growth since 2010 Growth now tempering 20 sales to be +1-2% at constant FX Beyond 20 expected to be 3-4% growth Subdued demand in most regions 212bn 218bn +7% 224bn +3% 253bn +1% FX 249bn 0% KEY CHANGES Digital innovation Customer behaviour Demographic shifts E GLOBAL PERSONAL LUXURY GOODS MARKET GROWTH AT CFX SOURCE: BAIN/ALTAGAMMA, OCTOBER 2016 OUTPERFORMING LUXURY SECTOR GROWTH FIVE KEY STRATEGIES Product Focus Productive Space E-Commerce Leadership Operational Excellence Inspired People OUTPERFORMANCE ACCELERATING OVER TIME About half coming from mainline retail productivity About one third from e-commerce Balance from new space, Beauty and growth from key wholesale partners Partly offset by continued improvement in quality of business Further rationalisation of traditional wholesale Reducing weight of outlets INVESTMENT TO DELIVER GROWTH About 10m in FY 20 About 20-25m in FY 2018 and FY 2019 FY 2016 RETAIL E-COMMERCE OTHER FY 2019 GOAL PRODUCTIVITY REVENUE NOT TO SCALE 3

4 FINANCIAL AMBITION REVENUE Outperform luxury sector growth, with outperformance accelerating over time INVESTMENT About 10m in FY 20 About 20-25m in FY 2018 and FY 2019 COST SAVINGS Around 20m in FY 20 At least 100m annualised by FY 2019 ONE-OFF COSTS Around 60m across the first two years IF AMBITIOUS TARGETS MET, PERFORMANCE-RELATED PAY CHARGE Around 20m new charge in FY 20 On top of 20m existing charge FIVE KEY STRATEGIES: PROGRESS YEAR TO DATE PRODUCT FOCUS PRODUCTIVE SPACE E-commerce Leadership Operational Excellence Inspired People Building a strategic approach to key categories Reducing assortments Greater visibility of fashion and newness Introducing end-to-end category management Increasing investment in training Completing roll out of one label strategy Implementing a new store profiling model Rolling out net promoter score Designing best practise back and front-of-house operations Launched redesigned website Developing customer app Developing best-in-class relationships and driving innovation with partners online Increasing efficiency of spend Simplifying processes Implementing new technology solutions Establishing Transformation Management Office Simplifying the organisation Developing our talent Building employee engagement Committed to sustainability From product breadth to product focus From new space to productive space From digital prowess to e-commerce leadership Focusing on efficiency and investing appropriately Implementing new ways of working, while committed to unique culture and values Ambitious growth and productivity agenda to: Outperform luxury sector growth, with outperformance accelerating over time Deliver at least 100m annualised cost savings by FY

5 PRODUCT FOCUS: FROM PRODUCT BREADTH TO PRODUCT FOCUS SIMPLIFYING OUR OFFER INCREASING INNOVATION TAILORING ASSORTMENT TO LOCAL CUSTOMER PRIORITISE KEY CATEGORIES Changing our ways of working PROGRESS YEAR TO DATE Further 15-20% SKU reduction Greater visibility of fashion and newness Introducing end-to-end category management Building a strategic approach to key categories Beginning with bags Detailed plans for other core categories Leveraging the offer at both ends of existing pricing architecture PRODUCTIVE SPACE: FROM NEW SPACE TO PRODUCTIVE SPACE DRIVING RETAIL PRODUCTIVITY, A MULTI-YEAR PROGRAMME Service and cultivation Product Operations TO IMPROVE Conversion Customer retention Sales per square foot PROGRESS YEAR TO DATE Increased investment in training Expanded activity of BPCs Designing a new customer feedback tool Based on net promoter score Completing roll out of one label strategy Implementing a new store profiling model Designing best practise retail operations Both back and front-of-house CONVERSION % SALES PER SQUARE FOOT SOURCE: COMPANY AND INDUSTRY ESTIMATES 5

6 E-COMMERCE LEADERSHIP: FROM DIGITAL PROWESS TO E-COMMERCE LEADERSHIP GROW BURBERRY.COM Mobile, especially conversion Asia penetration GROW WITH THIRD PARTIES Revenue Reach Reputation OMNICHANNEL NEXT STAGE OF EVOLUTION PROGRESS YEAR TO DATE Digital outperformed and grew in all regions Improvement in conversion in both mobile and desktop Launched redesigned website Developing customer app Third party revenue At retail value, over half the size of in-house digital revenues Innovating in social commerce MOBILE MIX OF TRAFFIC IMPROVEMENT IN CONVERSION VS FY 2015 OPERATIONAL EXCELLENCE: FOCUSING ON EFFICIENCY AND INVESTING APPROPRIATELY PROGRESS YEAR TO DATE Increasing efficiency of spend on Non-stock procurement Improved returns on marketing Simplifying processes and implementing new technology solutions, such as New system supporting a redesigned procurement process New inventory management system Establishing Transformation Management Office To drive and co-ordinate delivery of strategic initiatives 6

7 INSPIRED PEOPLE: IMPLEMENTING NEW WAYS OF WORKING, WHILE COMMITTED TO UNIQUE CULTURE AND VALUES CHANGING OUR WAYS OF WORKING Reducing complexity Enhancing effectiveness DEVELOPING OUR TALENT BUILDING ENGAGEMENT COMMITTED TO SUSTAINABILITY PROGRESS YEAR TO DATE Evolving our operating model Right size, right shape, right capabilities Ranked as top ten in the UK for attracting and retaining talent by LinkedIn Recognised as the industry leader in the Dow Jones Sustainability Index ESG / SUSTAINABILITY DOW JONES SUSTAINABILITY INDICES Industry leader in the Textiles, Apparel & Luxury Goods' sector LIVING WAGE FOUNDATION Principal Partner BURBERRY APPRENTICES Participants joined retail, internal manufacturing and distribution teams in the UK 20 ENVIRONMENTAL TARGETS Joined the Better Cotton Initiative Seed-funded Sustainable Fibre Alliance, focused on sustainable cashmere production Environmental best practice at leather tanneries 7

8 CAPITAL STRUCTURE 552m 660m PRIORITISE INVESTMENT IN BUSINESS MOVE TO PROGRESSIVE DIVIDEND Interim dividend up 3% to 10.5p BEYOND THIS, REVIEW Cash generation Relevant financial parameters NET CASH NET DEBT RATIO SHARE BUYBACK PROGRAMME Up to 150m starting in FY 20 Additional 50m to start upon completion of the first 100m commenced in July m completed as of 18 January 20 Future returns under regular review ( 370m) ( 416m) LEASE-ADJUSTED NET DEBT FIXED CHARGE COVER * SEE APPENDIX FOR DEFINITIONS REMUNERATION REMUNERATION POLICY PRINCIPLES Linked to the success and strategy of business Aligned with shareholder value creation Competitive in global talent market ANNUAL BONUS LINKED TO ADJUSTED PROFIT EXECUTIVE SHARE PLAN 50-60% on adjusted profit growth 20-25% on revenue growth 20-25% on efficient use of capital Measured over three years Vest over three and four years ALL EMPLOYEE PLANS Sharesave Free shares FY 2016 No annual bonus No performance-related share awards vested FY 2016 FY 2015 ADJUSTED PBT FY 2016 FY 2015 REVENUE FY 2016 FY 2015 Underlying growth -10% +7% -1% +11% ADJUSTED RETAIL/WHOLESALE ROIC 8

9 APPENDIX ADJUSTED MEASURES All metrics and commentary in this presentation are at reported FX and exclude adjusting items unless stated otherwise. Adjusting items are: A 26.1m charge in reported operating expenses relating to the fragrance and beauty licence intangible asset (H1 2015/16: 7.5m) A 12.8m charge in reported operating expenses relating to restructuring costs arising from the Group s cost and efficiency programme A 4.3m charge ( 3.2m in reported operating expenses and 1.1m in the reported net finance charge) relating to the deferred consideration on the purchase of the non-controlling interest in Burberry Middle East Put option liability finance charge of 1.0m in reported net finance charge relating to the third party 15% economic interest in the Chinese business (H1 2015/16: income of 9.3m) Underlying performance is presented in this presentation as, in the opinion of the Directors, it provides additional understanding of the ongoing performance of the Group. Underlying performance is calculated before adjusting items and removes the effect of changes in exchange rates compared to the prior period. This takes into account both the impact of the movement in exchange rates on the translation of overseas subsidiaries results and also on foreign currency procurement and sales through the Group's UK supply chain. Comparable sales is the year-on-year change in sales from stores trading over equivalent time periods and measured at constant foreign exchange rates. It also includes online sales. Certain financial data within this presentation have been rounded. 9

10 REVENUE AND OPERATING PROFIT 1,999 +8% 2,330 +% 2, % 2,515 (1%) RETAIL/ WHOLESALE MARGIN.8% %.5% % 16.3% % 15.4% 418 (11%) 11.7% H2 1,159 (4%) H2 145 (24%) H1 H1 FY 2013 FY 2014 FY 2015 FY 2016 FY 20 FY 2013 FY 2014 FY 2015 FY 2016 FY 20 REVENUE UNDERLYING GROWTH ADJUSTED OPERATING PROFIT UNDERLYING GROWTH STRONG CASH GENERATION 523m 536m 568m 503m 435m 287m 301m 296m 263m 182m FY 2013 FY 2014 FY 2015 FY 2016 H1 20 FY 2013 FY 2014 FY 2015 FY 2016 H1 20 DIVIDEND INVESTMENT* FRAGRANCE PAYMENT BUYBACK CASH INFLOW FROM OPERATIONS USES OF CASH * INVESTMENT IS CAPITAL EXPENDITURE PLUS ACQUISITION SPEND 10

11 FINANCIAL HIGHLIGHTS CHANGE SIX MONTHS TO 30 SEPTEMBER UNDERLYING REPORTED FX REVENUE 1,159 1,105 (4%) 5% ADJUSTED PBT (24%) (4%) ADJUSTED DILUTED EPS p (6%) NET CASH DIVIDEND PER SHARE 10.5p 10.2p 3% FY 2016 BREAKDOWN OF OPERATING EXPENSES OTHER IT EMPLOYEE COSTS MARKETING DEPRECIATION PROPERTY-RELATED COSTS FY 2016 ADJUSTED OPERATING EXPENSES* * EXCLUDING AMORTISATION OF FRAGRANCE AND BEAUTY LICENCE INTANGIBLE OF 15M AND STORE IMPAIRMENTS/ONEROUS LEASE PROVISIONS OF 45M 11

12 FY 20 OUTLOOK RETAIL WHOLESALE RETAIL/WHOLESALE PROFIT LICENSING Low single-digit % growth in retail revenue from net new space Down mid-teens % at constant FX in H2. Trends in both fashion and Beauty similar to H1 At 31 December exchange rates, c. 115m benefit to reported profit compared to FY 2016 rates Down about 20m at constant FX INTEREST c. 2m UNDERLYING TAX RATE c. 25% CAPITAL EXPENDITURE c. 130m EXCHANGE RATES FORECAST FULL YEAR AVERAGE RATES FOR FY 20 AVERAGE EXCHANGE RATES 31 December 31 October FY H1 H1 1= / 2015/16 EURO US DOLLAR CHINESE YUAN RENMINBI HONG KONG DOLLAR KOREAN WON 1,504 1,448 1,740 1,565 1,743 YEN* * FOR LICENSING REVENUE, TAKING INTO ACCOUNT THE CURRENT HEDGED POSITIONS 12

13 RETAIL/WHOLESALE SIX MONTHS TO 30 SEPTEMBER CHANGE RETAIL/WHOLESALE REVENUE 1, , % GROSS MARGIN AS % OF REVENUE 68.3% 68.7% (40bp) OPERATING EXPENSES (648.7) (610.8) AS % OF REVENUE (56.6%) (56.7%) 10bp ADJUSTED OPERATING PROFIT % AS % OF REVENUE 11.7% 12.0% (30bp) RETAIL/WHOLESALE RETAIL: 75% OF RETAIL/WHOLESALE REVENUE Up 2% underlying, up 11% at reported FX Comparable sales improved in second quarter (Q1: down 3%; Q2: up 2%) Unchanged for the half Digital grew in all regions WHOLESALE: 25% OF RETAIL/WHOLESALE REVENUE Down 14% underlying, down 6% at reported FX Actions to build and reinforce luxury brand positioning in US and Beauty GROSS MARGIN DOWN 40 BASIS POINTS TO 68.3% 70 bps positive impact from FX Apparel and accessories margin unchanged year-on-year Beauty negatively impacted by strategic actions OPERATING EXPENSES DOWN 1% UNDERLYING Ongoing tight cost control Initial 6m savings associated with our cost efficiency programme Offsetting underlying cost pressure and investment in growth initiatives 13

14 LICENSING REVENUE 1% of group revenue Down 54% underlying, down 51% at reported FX Planned expiry of Japanese licences OPERATING PROFIT Down 11m year-on-year Reflecting lower revenue and costs SIX MONTHS TO 30 SEPTEMBER REVENUE GROSS MARGIN AT 100% OPERATING EXPENSES (1.8) (4.1) OPERATING PROFIT OPERATING MARGIN 85.9% 84.3% /YEN RATE INCLUDES POSITIVE FX IMPACT OF 0.7M IN REVENUE AND GROSS MARGIN AND NIL IN OPEX INCOME STATEMENT ADJUSTING ITEMS OF 44.2M Primarily reflecting strategic actions SIX MONTHS TO 30 SEPTEMBER EFFECTIVE TAX RATE OF c.25.0% ON ADJUSTED PBT FOR FY 20 (FY 2016: 24.7%) NON-CONTROLLING INTEREST OF 1.1M Primarily reflects profit in China pre August 2016 FRAGRANCE AND BEAUTY LICENCE INTANGIBLE CHARGES (26.1) (7.5) RESTRUCTURING COSTS (12.8) - CHINA PUT OPTION LIABILITY FINANCE (CHARGE)/INCOME (1.0) 9.3 BME DEFERRED CONSIDERATION CHARGES (4.3) - ADJUSTING ITEMS (44.2)

15 CASH INFLOW FROM OPERATIONS SIX MONTHS TO 30 SEPTEMBER ADJUSTED OPERATING PROFIT RESTRUCTURING SPEND (9.3) - DEPRECIATION AND AMORTISATION EMPLOYEE SHARE SCHEME COSTS (INCREASE) IN INVENTORIES (60.9) (42.9) DECREASE/(INCREASE) IN RECEIVABLES 24.6 (2.1) (DECREASE) IN PAYABLES (10.6) (8.1) OTHER CASH INFLOW FROM OPERATIONS MOVEMENT IN NET CASH SIX MONTHS TO 30 SEPTEMBER CASH INFLOW FROM OPERATIONS PAYMENTS FOR NCI (68.8) - CAPITAL EXPENDITURE (43.2) (80.1) NET INTEREST TAX PAID (65.2) (56.4) OTHER FREE CASH FLOW DIVIDENDS (118.6) (112.5) SHARE BUYBACK (32.4) - ESOP TRUST PURCHASES/OTHER (10.7) 0.9 EXCHANGE DIFFERENCE 24.2 (14.9) MOVEMENT IN NET CASH (131.2) (93.4) NET CASH AT 31 MARCH NET CASH AT 30 SEPTEMBER

16 KEY BALANCE SHEET METRICS 12 MONTHS TO 31 MARCH NET CASH ( m) LEASE-ADJUSTED NET (DEBT) ( m) (416) (370) NET DEBT RATIO (x) FIXED CHARGE COVER (x) Lease-adjusted net debt is defined as five times minimum lease payments less net cash Net debt ratio is defined as lease-adjusted net debt divided by EBITDAR (being operating profit plus depreciation and amortisation plus minimum lease payments) Fixed charge cover is defined as EBITDAR/ interest plus minimum lease payments All metrics exclude adjusting items. Minimum lease payments now exclude expenses relating to onerous lease provisions of 20.1m in FY 2016 and 6.5m in FY 2015 WHOLESALE CYCLE EXCLUDING RUNWAY Season Market Oct 16 Nov 16 Dec 16 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan 18 Feb 18 Mar 18 Apr 18 May 18 Jun 18 Autumn 20 Autumn/Winter Winter 20 Spring 2018 Spring/Summer Summer 2018 Market (selling) Delivered to wholesale customers Sold to consumer 16

17 LUXURY GOODS SPEND BY NATIONALITY OTHER ASIAN: 10% JAPANESE: 10% REST OF WORLD: 7% CHINESE: 31% CHINESE CONSUMER ACCOUNTS FOR c.30% OF PERSONAL LUXURY GOODS MARKET CHINESE CONSUMER HAS BEEN A KEY GROWTH DRIVER OVER LAST TEN YEARS Chinese spend increased from Euro10bn to well over Euro70bn in 2015 EUROPEANS: 18% AMERICANS: 24% PERSONAL LUXURY GOODS MARKET 2015 SOURCE: BAIN/ALTAGAMMA MAY 2016 JAPAN BUILDING OUR LUXURY BUSINESS OPENED FIRST STORE SIX YEARS AGO Retail revenue doubled in FY 2016 Now over 2% of group retail/wholesale revenue BUILDING RETAIL PRESENCE Open free-standing stores in key markets Relocated Omotesando Opened Osaka and Shinjuku flagships Partner with department stores Currently six stores and 31 concessions (including 10 small childrenswear) BUILDING DIGITAL PRESENCE Working with leading social media platforms Transactional website live since 2011 Blur physical and digital in store Collect-in-store now available Pursue opportunities with third party digital players LONG-TERM VISION Luxury brand positioning About 8-10% of group revenue, in line with peers SHINJUKU, JAPAN

18 NO CHANGE IN REAL ESTATE STRATEGY () 16 () 18 () c.15 c.(15) c.215 FY 2013 FY 2014 FY 2015 FY 2016 FY 20F STORE OPENINGS STORE CLOSURES TRANSFERS* NUMBER OF MAINLINE STORES * ONE STORE TRANSFERRED FROM THAILAND FRANCHISEE IN FY 2014 STORE PORTFOLIO GLOBAL Directly-operated Stores Concessions Outlets Total Franchise stores At 31 March Additions Closures (13) (18) - (31) (14) At 31 December BY REGION Directly-operated At 31 December 2016 Stores Concessions Outlets Total Franchise Stores Asia Pacific EMEIA Americas Total

19 AMERICAN DEPOSITARY RECEIPT PROGRAMME Burberry has an American Depositary Receipt (ADR) programme that trades on the Over-The-Counter ('OTC') market in the US. An ADR is a receipt that is issued by a depositary bank representing ownership of a company's underlying ordinary shares. ADRs are quoted in US dollars and trade just like any other US security. The company has a sponsored Level 1 ADR programme for which The Bank of New York Mellon acts as Depositary. Ratio: 1 ADR = 1 ordinary share Exchange: OTC Symbol: BURBY CUSIP: 12082W204 OTC Markets: IR CONTACTS Charlotte Cowley Director of Investor Relations charlotte.cowley@burberry.com Bryony Dimmer Investor Relations Manager bryony.dimmer@burberry.com Megan Saia Investor Relations Coordinator megan.saia@burberry.com Horseferry House Horseferry Road London SW1P 2AW Tel: +44 (0) investor.relations@burberry.com artofthetrench.burberry.com

20 CALENDAR SECOND HALF TRADING UPDATE 19 April 20 PRELIMINARY RESULTS 18 May 20 ANNUAL GENERAL MEETING July 20 DISCLAIMER Certain statements made in this presentation are forward-looking statements. Such statements are based on current expectations and are subject to a number of risks and uncertainties that could cause actual results to differ materially from any expected future results in forward-looking statements. Burberry Group plc undertakes no obligation to update these forward-looking statements and will not publicly release any revisions it may make to these forward-looking statements that may result from events or circumstances arising after the date of this document. Nothing in this presentation should be construed as a profit forecast. All persons, wherever located, should consult any additional disclosures that Burberry Group plc may make in any regulatory announcements or documents which it publishes. All persons, wherever located, should take note of these disclosures. This presentation does not constitute an invitation to underwrite, subscribe for or otherwise acquire or dispose of any Burberry Group plc shares, in the UK, or in the US, or under the US Securities Act 1933 or in any other jurisdiction. Burberry is listed on the London Stock Exchange (BRBY.L) and is a constituent of the FTSE 100 index. ADR symbol OTC:BURBY. BURBERRY, the Equestrian Knight Device and the Burberry Check are trademarks belonging to Burberry which are registered and enforced worldwide. 20