Slide 1: Twelve Months End 31 March 2018
TWELVE MONTHS END 31 MARCH 2018 MARCO GOBBETTI CHIEF EXECUTIVE OFFICER 1
Slide 2: Agenda and FY 2018 Highlights
AGENDA INTRODUCTION FINANCIAL RESULTS GUIDANCE STRATEGIC UPDATE Q&A FY 2018 HIGHLIGHTS • Results in line with our expectations • Group revenue +2% CER, adjusted for Beauty wholesale • Comparable store sales +3% CER • Adjusted operating profit growth +5% CER • Good performance in period of transition
Slide 3: FY 2018 Summary Financials
JULIE BROWN CHIEF OPERATING & FINANCIAL OFFICER FY 2018 SUMMARY FINANCIALS ---------- Change --------- Twelve months to 31 March 2018 2017 Reported CER £m £m FX Revenue 2,733 2,766 (1%) (1%) Revenue ex Beauty wholesale 2,660 2,595 2% 2% Adjusted operating profit 467 459 2% 5% ADJUSTED Adjusted opera
Slide 4: Group Revenue +2% (ex Beauty Wholesale)
GROUP REVENUE +2% (EX BEAUTY WHOLESALE) REVENUE GROWTH EX BEAUTY WHOLESALE +2% 0% +21% +3% £2,766m £2,727m £2,733m (1%) £6m (1%)* Total FY 2017 Retail Wholesale ex Licensing Beauty Total CER Currency Total FY 2018 Beauty wholesale *reported growth RETAIL & WHOLESALE REVENUE BY REGION (EX BEAUTY WHOL
Slide 5: Retail & Wholesale Revenue by Product; Income Statement
RETAIL & WHOLESALE REVENUE BY PRODUCT (EX BEAUTY WHOLESALE) YOY GROWTH YOY CER FY 2017 FY 2018 REPORTED GROWTH £2,570m £2,630m ACCESSORIES +1% +1% £1,046 m £1,032 m WOMENS APPAREL +2% +2% £792 m £808 m +4% +4% MENS APPAREL £624 m £647 m CHILDREN +8% +8% £108 m £117 m (26%) (26%) BEAUTY RETAIL £14 m
Slide 6: Adjusted Operating Margin +110bps CER; Free Cash Flow
ADJUSTED OPERATING MARGIN +110BPS CER ADJUSTED OPERATING margin FY 2018 operating margin drivers +110bps CER 17.7% CER COST SAVING PROGRAMME +50bps reported BEAUTY & CHANNEL MIX 17.1% reported 16.6% rates INFLATION & INVENTORY STRATEGIC INVESTMENTS FY 2017 FY 2018 FREE CASH FLOW Twelve months to 31
Slide 7: Movement in Net Cash; Two-Phase Transformation Journey
MOVEMENT IN NET CASH £590m (£106m) (£169m) £150m (£355m) (£27m) £892m £809m Reinvest for Progressive Strategic Return excess organic dividend flows to growth policy shareholders (Beauty) Mar 2017 FCF pre capex Capex Dividend Strategic Buyback Other inc FX on Mar 2018 investment cash Lease adjusted n
Slide 8: FY 2019 Outlook
FY 2019 OUTLOOK ALL GUIDANCE AT CER • Improving distribution impacts revenue • Retail space negative 1% impact • Wholesale (ex Beauty) low single digit percentage decline BROADLY • Cost savings to build, reaching £100m cumulative STABLE REVENUE AND • Adjusted EPS growth benefiting from expected tax
Slide 9: Operational Excellence
OPERATIONAL EXCELLENCE BUILD THE £120m F O U N D AT I O N Simplified AC C E L E R AT E Annualised cumulative Operating AND GROW savings expected Model Procurement £64m cumulative savings delivered ahead of plan IT Supply Chain FY 2018 FY 2020F Burberry Business Services, Leeds, UK Cost and efficienc
Slide 10: Our Strategy
OUR STRATEGY VISION Establish our position firmly in luxury fashion, inspiring customers with our unique british attitude COMMUNICATION DISTRIBUTION RICCARDO TISCI 10
Slide 11: Go-to-Market Approach; Leather Transformation
GO-TO-MARKET APPROACH FREQUENT, FRESH DELIVERIES CONTINUOUSLY ENGAGING CONSUMERS WITH NEWNESS LEATHER TRANSFORMATION NEW handBAG STYLES & ROADMAP Creating a new centre of excellence for leather goods 11
Slide 12: Communication; Retail Excellence
Paragraph relating to collage. COMMUNICATION The images in the background can be used as placeholders, or completely replaced with your own composition RETAIL EXCELLENCE NEW LEADERSHIP TEAM GLOBAL RETAIL LEADERS PROGRAMME digital CLIENTELING TOOL MERCHANT-LED PRODUCT TRAINING NEW CUSTOMER JOURNEY PI
Slide 13: Distribution Evolution
DISTRIBUTION EVOLUTION Refining our mainline portfolio GROWING BRAND ENHANCING wholesale RIGHTSIZING OUR OUTLET PENETRATION STRENGTHENING THIRD PARTY DIGITAL PARTNERSHIPS DIGITAL DISTRIBUTION REACH 150+ 44 2017 2018 MAKE GLOBAL REACH NEW INVENTORY FASHION- AVAILABLE ON CONSCIOUS FARFETCH CONSUMERS 1
Slide 14: Leadership Strength; Our Strategy
LEADERSHIP STRENGTH SIMPLIFIED GOVERNANCE CLARIFIED ACCOUNTABILITIES BUILDING THE RIGHT EXPERIENCE AND EXPERTISE IN OUR TOP LEADERSHIP POPULATION THROUGH PROMOTIONS AND NEW HIRES OUR STRATEGY VISION Establish our position firmly in luxury fashion, inspiring customers with our unique british attitude
Slide 15: Q&A / Appendix
Q&A APPENDIX 15
Slide 16: Disclaimer; Alternative Performance Measures
DISCLAIMER • The financial information contained in this presentation is unaudited. • 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
Slide 17: Retail Calendar; Adjusting Items
RETAIL CALENDAR Full Year will end Saturday nearest to the 31 March (e.g. 30 March 2019) For FY 2019, no material difference in comparability vs FY 2018 Some phasing impacts on quarterly revenues resulting from a difference in trading days (see table) Differences arising from changes in cale
Slide 18: Foreign Exchange Rates; FY 2019 Outlook
FOREIGN EXCHANGE RATES Spot rates ---------- Actual Average exchange rates ------- 30 April FY 2018 FY 2017 £1= 2018 Euro 1.14 1.13 1.19 US Dollar 1.38 1.33 1.30 Chinese Yuan Renminbi 8.71 8.79 8.73 Hong Kong Dollar 10.81 10.37 10.11 Korean Wong 1,473 1,473 1,487 Currency sensitivity: In FY 2018, a
Slide 19: IR Contacts; Reporting Calendar
IR CONTACTS Charlotte Cowley REPORTING CALENDAR VP, Investor Relations Q1 Trading Update 11 July 2018 charlotte.cowley@burberry.com AGM 12 July 2018 Annabel Gleeson Senior Investor Relations Manager Horseferry House annabel.gleeson@burberry.com Horseferry Road London Laura O’Neill SW1P 2AW Investor