Burberry Group Plc · LSE:BRBY
Burberry — FY2022 Earnings Presentation
23 slides from Burberry's earnings presentation, May 18, 2022
Slide 1: FY22 presentation
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Slide 2: Securing the position of a global iconic luxury brand
SECURING THE POSITION OF A GLOBAL ICONIC LUXURY BRAND FY18-FY20 BUILD THE FOUNDATIONS + Repositioned to luxury + Transformed product offer + Reset distribution to luxury + Stable revenue and profit FY20-FY21 — COVID-19 STRENGTHEN FOUNDATIONS * Orientate the business to full price + AUR increase + Gr
Slide 3: Summary of FY22 performance
SUMMARY OF FY22 PERFORMANCE Strong full-price sales growth and record profit Continued impressive growth in Americas with FY22 full- price sales almost doubling vs pre-pandemic levels Mainland China and South Korea full-price sales up more than 50% and 80% vs LLY respectively EMEIA impacted by trave
Slide 4: Income statement
Adjusted Reported INCOME STATEMENT Period ended Revenue 2,826 2,344 21% 23% Gross profit 1,995 1,640 22% 24% ross margin % 70.6% 70.0% +60bp +60b Adjusted operating profit 523 396 32% 38% [Adjusted operating profit margin 18.5% 16.9% +160bp +2106} l|Adjusted diluted EPS 94.0p 67.3p 40% 49% Free cash
Slide 5: Impact of markdown in FY22
*Note: Impact of Markdown in FY22: -6% comp 9 10
Slide 6: Group quarterly comp store sales progression
GROUP QUARTERLY COMP STORE SALES PROGRESSION VS PRE-PANDEMIC LEVELS Q1 FY22 to Q3 FY22 quarterly sales growth vs LLY Q4 FY22 quarterly sales growth vs LLLY A \ a 26% 26% 17% 10% ™ Full Price = Comp +1% +0% 3% +0% QIv LLY Q2v LLY Q3vLLY Q4vLLLY Full price growth v LY 4121% +10% +15% +5% Comp growth v
Slide 7: Gross margin increase
* Gross margin increase 60bps reported and 60bps at CER 13 14
Slide 8: Strong free cash generation
STRONG FREE CASH GENERATION 700 140% 129% 600 120% 106% Average conversion 103% 500 93% 100% COVID-19 400 impacted 80% 300 60% 200 40% 100 20% 0 0% FYI7 FYI8 FYI9 FY20 Fy21 FY22 FCF pre capex Adjusted profit before tax Cash conversion All figures based on Reported FX STRONG FREE CASH GENERATION _ [|
Slide 9: Value creation
VALUE CREATION | nevenue > HIGH SINGLE-DIGIT REVENUE GROWTH* VALUE CREATED THROUGH MEANINGFUL MARGIN ACCRETION* | carravexrenorrune > REINVEST FOR ORGANIC GROWTH VALUE CREATED THROUGH ( CAPITAL ALLOCATION STRATEGIC INORGANIC INVESTMENTS. Target leverage range of 0.5-1.0x Net Debt/EBITDA * Based on F
Slide 10: FY23 outlook
FY23 OUTLOOK * Medium term guidance of HSD revenue CAGR at CER and meaningful margin accretion + Impact of COVID-19 related lockdowns in Q1 and macroeconomic uncertainty * Phasing between H1 and H2 likely to be affected by Mainland China lockdowns & investment plans + H1 Wholesale expected to be bro
Slide 11: Rodeo Drive store takeover
RODEO DRIVE STORE TAKEOVER 23
Slide 12: Burberry Supreme collection
BURBERRY SUPREME COLLECTION 24 MET GALA 25
Slide 13: Outerwear driving H2 performance
: OUTERWEAR -— DRIVING H2 PERFORMANCE 26 : LEATHER GOODS — LOLA CAMPAIGN JUST LAUNCHED 27
Slide 14: Customer experience: new store roll out programme
CUSTOMER EXPERIENCE: NEW STORE ROLL OUT PROGRAMME - PARIS 28 CUSTOMER EXPERIENCE: POP-UPS, POP INS KEY FOCUS OF BRAND INVESTMENT 29
Slide 15: ESG: 2017-2022 goals substantially met
ESG | 2017-2022 GOALS SUBSTANTIALLY MET Carbon neutral in 100% of Zero operational own operations electricity from waste to landfill globally renewable across key sites sources 9 99% of products 100% of cotton 92% of leather from certified sourced more . tanneries sustainably with >1 social or envir
Slide 16: 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 17: Alternative performance measures
ALTERNATIVE PERFORMANCE MEASURES APM Description and purpose GAAP measure reconciled to Constant Exchange Rates (CER) This measure removes the effect of changes in exchange rates and the 53rd week compared to the prior period. The constant exchange rate incorporates both the impact of the movement i
Slide 18: Alternative performance measures
ALTERNATIVE PERFORMANCE MEASURES APM. Description and purpose GAAP measure reconciled to Cash Conversion Cash conversion is defined as free cash flow pre-tax/adjusted profit before tax. les a measure of the Group's effectiveness in converting its profit into Period ended ‘53 weeks ended ‘52 weeks en
Slide 19: Guidance and historical margins
40 *Guidance based on constant exchange rates and from a FY 20 base **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 20: Retail & wholesale revenue by product v LY
RETAIL & WHOLESALE REVENUE BY PRODUCT V LY FY22 FY21 FY22 FY22 Reported CER Growth Growth £2,785m £2,306m 21% 23% Children’s & Other £177m £144m 23% 25% Men’s 21% 23% Women's £784m B653m 20% 22% Accessories alga seein 21% 24% FY22 FY21 42 ADJUSTING ITEMS 3 Inventory provisions (recognised in COGS) 1
Slide 21: Proposed dividend
* Proposed – 11.6p paid on 28 January with 35.4p proposed for approval at the AGM 44 • • • • • • Note: Adjusted operating profit and margins at reported rates: Adjusted operating margin 18.8% at FY20 CER and 19.0% at FY21 CER 45
Slide 22: Guidance based on FY22 CER
• Based on FX rates at 6 May 2022 • Note: all guidance based on FY22 CER 46 47
Slide 23: 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 48