Burberry Group Plc · LSE:BRBY
Burberry — H1 FY22 Earnings Presentation
22 slides from Burberry's earnings presentation, November 2021
Slide 1: H1 FY22 presentation
H1 FY22 presentation "41 November 2021 SECURING THE POSITION OF A GLOBAL ICONIC LUXURY BRAND FY18-FY20 FY20-FY21- COVID-19 BUILD THE FOUNDATIONS STRENGHTEN FOUNDATIONS + Repositioned to luxury + Orientate the business to full price + Transformed product offer + AUR increase + Reset distribution to l
Slide 2: Summary of Progress
SUMMARY OF PROGRESS + Full-price comparable store sales up 18% in H1 FY22 as collections continued to attract a new, younger clientele to the brand + Strong performance from markets less impacted by the COVID-19 travel restrictions; Americas and Korea + Mainland China comparable store sales growth c
Slide 3: Revenue
£878m Revenue H1FY21 H1 GROUP REVENUE +45% (CER) £1,275m 469% #13% +45% 7% £1,213m +38% 44% 437% Retail Comp Retail Space Wholesale_—_Licensing Revenue FX Revenue H1 H1FY22 at CER FY22 reported Business mix H1 FY22 Licensing Wholesale 2% 20% Retail 78% Comparable Sales performance +37% vs LY £704m R
Slide 4: H1 Retail Comparable Growth vs FY20
H1 RETAIL COMPARABLE GROWTH VS FY20 es INCLUDING FULL-PRICE PERFORMANCE Asia Pacific 50% EMEIA_~ 23% Regional mix H1FY22 Comp -31% FP -30% EMEIA USFP +114% Mainland ChinaFP +42% Korea FP +79% Note: Comp - Comparable store sales at CER; FP — Full-price comparable store sales at CER 7 WE HAVE ALMOST D
Slide 5: 1 Based on average engagements in Q2 21/22 vs. Q2 20/21
9 1 Based on average engagements in Q2 21/22 vs. Q2 20/21 10
Slide 6: Group Quarterly Comp Store Sales Progression
GROUP QUARTERLY COMP STORE SALES PROGRESSION FULL-PRICE SALES GROWTH RISING STRONGLY IN THE LAST 4 QUARTERS 9% FY21 a 6% 45% Comparable store sales by quarter +1% Flat “5% -9% Q2 Q3 Q4vLLY QivLLY Q2vLLY Note: Against the previous year Q4 FY21 +32%, QIFY22 +90%, Q2 FY22+6% Full-price comparable store
Slide 7: Gross margin and adjusted operating profit margin improvement
180bp reported v LLY +210bp m Reported adjusted gross margin Gross margins up 210bp at CER & 69.6% Gross margin H1FY20 Gross margin Hi FY22 FULL-PRICE SALES GROWTH DELIVERS STRONG GROSS AND ADJUSTED OPERATING PROFIT MARGIN IMPROVEMENT AND CASH GENERATION Adjusted operating profit margins at Cash con
Slide 8: 1 Estimated earned conversation reach on Instagram and Twitter
1 Estimated earned conversation reach on Instagram and Twitter 15 16
Slide 9: Advancing Our Strategic Priorities: Customer Experience
ADVANCING OUR STRATEGIC PRIORITIES: CUSTOMER EXPERIENCE NEW STORE CONCEPT OMNICHANNEL DIGITAL ‘THE FREEDOM OF OUR, IMAGINATION New store concept roll out progressing at pace, Enhanced omnichannel journeys through sales Burberry .com takeovers for Summer with 15 stores completed by Q2 associate outre
Slide 10: Delivered on Our Industry-Leading ESG Global Agenda
DELIVERED ON OUR INDUSTRY-LEADING ESG GLOBAL AGENDA OUR ENVIRONMENT OUR PEOPLE OUR COMMUNITIES BECOME CLIMATE POSITIVE BUILD TRUE ALLYSHIP INVEST IN YOUTH AND CREATIVITY Announced biodiversity strategy at Widened scope of internal council, Expanded education programmes COP26, building on our pledge
Slide 11: Gross margin increase 120bps reported and 130bps at CER
21 * Gross margin increase 120bps reported and 130bps at CER 22
Slide 12: Adjusted operating costs 52% sales at CER
Adjusted operating costs 52% sales at CER ADJUSTED OPERATING PROFIT MARGIN IMPROVED TO 17% AT CER +£20m +£5m -£21m eet6m -£125m +£270m £216m -£20m £196m £51m HI FY21 Trading GM rate Cost savings Property Impairment —_Investment/ HI FY22 FX HI FY22 Operating profit increase gain headwind normalisatio
Slide 13: Net debt/EBITDA
25 £1,216m £1,143m Net debt/ Net debt/ EBITDA EBITDA 0.1x 0.3x 26
Slide 14: Medium Term Value Creation on Track
3 4 H1 FY 22 KEY TOPICS Revenue Margin accretion Strategic priorities Financials Value creation 27 27 * Based on FY20 base at CER MEDIUM TERM VALUE CREATION ON TRACK VALUE CREATED THROUGH OPERATIONS VALUE CREATED THROUGH CAPITAL ALLOCATION —_—— Target leverage range of 0.5-1.0x Net Debt/EBITDA from
Slide 15: Outlook Confirmed
OUTLOOK CONFIRMED * Strategy on track, focused on delivering ‘growth and acceleration’ phase + Markdown exit to be completed by end of this year * Strong wholesale order book with FY up in mid 30% and H2 around +15% vs LY * Currency headwind - c.£100m revenue headwind and c.£40m adjusted operating p
Slide 16: Appendix
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Slide 17: Disclaimer
DISCLAIMER The financial information contained in this presentation is unaudited. Certain statements made in this announcement 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 d
Slide 18: APM
APM Description and purpose ALTERNATIVE PERFORMANCE MEASURES GAAP measure reconciled to Adjusted Profit Adjusted profit measures are presented to provide additional consideration of the underlying performance of the Group's ongoing business. These measures remove the impact of those items which shou
Slide 19: Alternative Performance Measures
ALTERNATIVE PERFORMANCE MEASURES APM. Description and purpose GAAP measure reconciled to Adjusted EBITDA Adjusted EBITDA is defined as operating profit, excluding adjusting Reconciliation from operating profit to adjusted EBITDA: operating items, depreciation of property, plant and eq depreciation o
Slide 20: Guidance and historical margins
40 *Guidance based on constant exchange rates **Historical margins as reported with FY19 impacted by adverse FX (-110bps) and from FY20 adjusted operating profit is reported under IFRS16 (+110bps in FY20 v IAS17) 41
Slide 21: FY22 guidance notes
• Based on FX rates at 29 October 2021 • Note: all guidance based on FY21 CER 42 43
Slide 22: IR Contacts
IR CONTACTS Julian Easthope VP, Investor Relations julian.easthope@burberry.com Stephanie Crinnegan Investor Relations Director stephanie.crinnegan@burberry.com Sophie Parker Investor Relations Coordinator sophie.parker@burberry.com 44 44