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COMPANY PROFILE

Burberry Group plc

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PUBLICATION DATE: 30 Apr 2018
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TABLE OF CONTENTS

TABLE OF CONTENTS

Company Overview ........................................................................................................3

Key Facts ......................................................................................................................... 3
Tickers ............................................................................................................................. 4
Business Description .....................................................................................................5
Corporate Strategy .........................................................................................................6
History ............................................................................................................................. 7
Key Employees .............................................................................................................13
Key Employee Biographies .........................................................................................14
Major Products & Services ..........................................................................................17
SWOT Analysis .............................................................................................................18
Top Competitors ...........................................................................................................22
Company View ..............................................................................................................23
Locations And Subsidaries .........................................................................................26
Financial Overview .......................................................................................................27

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Company Overview

Company Overview

COMPANY OVERVIEW
Burberry Group plc (Burberry or 'the company') designs, produces and sells luxury products. The
company’s product portfolio comprises apparel and accessories women, men and children. Burberry
distributes its products under Burberry brand through a diversified network of retail, wholesale and
licensing channels worldwide. It conducts business operations through Burberry mainline stores, outlets,
concessions and digital commerce as well as Burberry franchisees, department stores and multi-brand
specialty account stores. The company also merchandises products online through its portal,
burberry.com. It has operational presence across Asia Pacific, Europe, Middle East, India and Africa
(EMEIA) and the Americas. Burberry is headquartered in London, the UK.

The company reported revenues of (British Pounds) GBP2,732.8 million for the fiscal year ended March
2018 (FY2018), a decrease of 1.2% over FY2017. In FY2018, the company’s operating margin was 15%,
compared to an operating margin of 14.3% in FY2017. In FY2018, the company recorded a net margin of
10.7%, compared to a net margin of 10.4% in FY2017.
Key Facts

KEY FACTS

Head Office Burberry Group plc

Horseferry House
Horseferry Road
London
England
London
England
GBR
Phone 44 207 8061328
Fax
Web Address www.burberryplc.com
Revenue / turnover (GBP Mn) 2,732.8
Revenue (USD Mn) 4,177.3
Financial Year End March
Employees 9,752
London Stock Exchange (LON) BRBY
Ticker

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Tickers

TICKERS
BRBY

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Business Description

BUSINESS DESCRIPTION
Burberry Group plc (Burberry or ‘the company’) is involved in manufacturing and distribution of apparels
and accessories for men, women, and children. The company distributes its products through a
diversified network of retail, wholesale and licensing channels worldwide. Its women category products
include coats and jackets, trench coats, jackets, quilts and puffers, ponchos, capes, dresses and
jumpsuits, knitwear and sweatshirts; makeup products for face, eyes, lips and nails; fragrances;
accessories such as belts, jewelry, hats and gloves, umbrellas and sunglasses as well as shoes.

Under men category, the company offers clothing such as formal and casual shirts, knitwear, sweatshirts,
polos and t-shirts, jeans, swimwear, trousers and shorts; accessories such as bags, wallets, ties, belts,
cufflinks and key rings; scarves including cashmere and lightweight scarves. Shoes including sneakers,
sandals and espadrilles, loafers and brogues and other children wear garments. In FY2017, the company
operated 209 mainline stores, 200 concession stores and 60 outlets.

The company operates through two business channels: Retail/Wholesale and Licensing.

The Retail/Wholesale business channel is engaged in sale of luxury goods through Burberry mainline
stores, concessions, outlets and digital commerce, as well as Burberry franchisees, prestige department
stores globally and multi-brand specialty accounts. In FY2017, the company directly operated 469 stores
including 213 in Asia-Pacific, followed by EMEA(153), and the Americas (103). In FY2017, the company’s
accessories represented 38% of retail/wholesale revenue, followed by women’s wear (29%), men’s wear
(22%), children wear (4%) and beauty (7%). In FY2017, the Retail/Wholesale business channel
generated revenue of GBP2,741.1 million, accounting for 99.1% of the company’s total revenue.

Licensing business channel of Burberry includes receipt of royalties from global licensees of eyewear,
timepieces and childrenswear as well as from non-Burberry in Japan. In FY2017, the Licensing segment
reported revenues of GBP24.9 million, accounting for 0.9% of the company’s total revenue.

The company sells its products through online platform Burberry.com; and third-party wholesale
customers. Geographically, the company operates in three regions; Asia Pacific, Europe, Middle East,
India and Africa (EMEIA) and the Americas. In FY2017, the Asia Pacific accounted for 39% of the
company’s total revenues, followed by Europe, Middle East, India and Africa (EMEIA) region with 36.2%
and Americas 24.8%.

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Company Overview

Corporate Strategy

CORPORATE STRATEGY
Burberry intends to create and deliver enhanced shopping experiences to its customers by designing
various crafted apparel products using latest innovations and techniques.

In line with its strategy, the company focuses on building a strategic approach to core product categories;
developing end-to-end category management; enhancing store assortment; simplifying the product offer;
elevating service and training; improving customer cultivation and retention and investing on in-store
operations.

The company developed a strategy that targets customers and market price then introduces products by
innovation and creativity. Burberry’s new product launches include DK88 signature collection, the Bridle
bag and the Buckle bag family. In April 2017, Burberry entered into a strategic partnership with Coty, a
global beauty company to improve its beauty business. Further Burberry is developing its product
category by building its outerwear in cashmere and developing small leather goods.

Burberry also focuses on product functions including merchandising, planning, design, product
development, supply chain and marketing and also aims is to improve collaboration and customer/product
focus throughout the product- development life cycle. Burberry developed a new store profiling model that
tailors product offer to reflect the particular store profile.

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History

HISTORY

Acquisitions/Mergers/Takeovers

Year: 2018

In May, the company announced its plans to acquire luxury leather goods business in Italy from CF&P.

New Products/Services

Year: 2017

In October, Burberry launched summer collection.

Contracts/Agreements

Year: 2018

In February, the company entered into a partnership with Farfetch, the leading global technology platform
for the fashion industry. With the partnership, Burberry focused on strengthening the e-commerce
presence.

Corporate Changes/Expansions

Year: 2017

In May, the company opened its new business services center in Leeds, the UK.

Contracts/Agreements

Year: 2017

In April, the company entered into a partnership with Coty, a beauty company. The partnership is
expected to boost the Burberry's luxury beauty products.

Corporate Changes/Expansions

Year: 2017

In May, Burberry opened new stores at Clearfork, Texas, the US.

New Products/Services

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Year: 2016

The group launched My Burberry Black, a new perfume for women.

Acquisitions/Mergers/Takeovers

Year: 2016

Burberry acquired the remaining 15% economic interest in its China business, which is held by Sparkle
Roll Holdings Limited (Sparkle Roll), a non-group company.

New Products/Services

Year: 2016

The group introduced Mr. Burberry, a new fragrance for men.

New Products/Services

Year: 2016

Burberry launched a new app for Apple TV, which offers access to a selection of Burberry Acoustic music
videos from British artists; beauty tutorials; and highlights from the brand's previous runway shows.

Corporate Changes/Expansions

Year: 2015

The group announced that it will invest over £50 million ($80.6 million) to develop a new manufacturing
and weaving facility in South Bank, Leeds. The facility is scheduled to be completed by 2019.

Contracts/Agreements

Year: 2015

Burberry and Kakao announced a global partnership to offer Korean audiences direct access to
Burberry's runway shows, campaigns and events.

Contracts/Agreements

Year: 2015

Burberry announced a new digital collaboration with the Shinsegae Group, the luxury department store, to
launch Burberry SSG.com store. The store will be accessible in South Korea across all mobile, tablet and

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desktop devices. Through this launch, the group intends to provide seamless experience of the brand
both in physical stores and online to the Korean consumers.

Corporate Changes/Expansions

Year: 2015

The group opened its first freestanding store in Osaka, Japan. The new store consists of largest Burberry
product assortment in Osaka, including Made in England trench coats.

New Products/Services

Year: 2015

Burberry launched a new channel on Apple Music. The channel will present the group's collaborations
with emerging British artists, and feature performances, songs and films alongside regular playlists.

Corporate Changes/Expansions

Year: 2015

The group opened its first flagship store in Seoul, South Korea.

Plans/Strategy

Year: 2015

Burberry announced plans to consolidate its Prorsum, London and Brit collections into a new single
'Burberry' label by the end of 2016.

Corporate Changes/Expansions

Year: 2014

Burberry opened a flagship store in Shangai, China. The group opened a flagship store in Los Angeles,
the US. The company opened its first Burberry Beauty Box in Seoul, Korea.

New Products/Services

Year: 2013

The group launched Brit Rhythm, a new fragrance for men.

Corporate Changes/Expansions

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Year: 2013

Burberry opened The Burberry Beauty Box. It features the full Burberry Beauty collection of make-up and
fragrance, as well as limited edition beauty products. It also houses Burberry accessories including
sunglasses, scarves and a limited selection of bags, available only in the store.

Corporate Changes/Expansions

Year: 2012

The group opened new flagship store in Hong Kong. The store is the brand's largest in the Asia Pacific
region. Burberry also opened flagship store in Chicago.

Corporate Changes/Expansions

Year: 2010

Burberry opened its first store in Lebanon.

Contracts/Agreements

Year: 2010

The group entered into an agreement to acquire the stores and related assets in China, which were
operated by its long-standing franchisees.

Corporate Changes/Expansions

Year: 2009

The group reopened its Omotesando store in Tokyo, Japan. Burberry opened its global headquarters at
Horseferry House in Westminster.

Contracts/Agreements

Year: 2008

Burberry formed a joint venture covering parts of the Middle East with its franchisee, The Jashanmal
Group. The joint venture created a new company named Burberry Middle East. It manages all Burberry
retail and wholesale distribution within the UAE markets including Dubai and Abu Dhabi, as well as Qatar,
Oman and Kuwait under a 15-year agreement.The group signed a joint venture agreement with its
licensing partners, Sanyo and Mitsui, to develop the distribution of Burberry's international non-apparel
products in Japan.

Spin-off

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Year: 2006

GUS completed the spin-off of Burberry.

Contracts/Agreements

Year: 2005

Burberry and Luxottica Group, one of the global leaders in the eyewear sector, entered into a 10-year
licence agreement for the design, production and worldwide distribution of prescription frames and
sunglasses under the Burberry name.

Corporate Changes/Expansions

Year: 2004

The group opened its first store in Stoleshnikov, Russia.

Stock Listings/IPO

Year: 2002

GUS floated around 25% of Burberry on the London Stock Exchange.

Contracts/Agreements

Year: 1980

Burberry entered into a licensing arrangement with Mitsui and Sanyo. Sanyo is a Japan-based company
mainly engaged in the manufacture and sale of textile products.

Corporate Changes/Expansions

Year: 1970

Burberry expanded its retail business, particularly in the US, and increased the licensing of the Burberry
brand.

Contracts/Agreements

Year: 1964

The group entered into an agreement with Mitsui, a multi-lateral business that ranges from product sales,
worldwide logistics and financing, for the distribution of its outerwear products in Japan.

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Acquisitions/Mergers/Takeovers

Year: 1955

The group was acquired by GUS, the retail and business services group.

Commercial Operation

Year: 1920

Burberry started selling its products in Japan.

Corporate Changes/Expansions

Year: 1909

Burberry opened its first French store on the Boulevard Malesherbes in Paris.

Corporate Changes/Expansions

Year: 1891

The group's retail business expanded to London, the UK, when a shop was opened in the Haymarket
selling outerwear to sportsmen.

New Products/Services

Year: 1880

Thomas Burberry developed a fabric that was resistant to tearing and weatherproof whilst remaining
breathable, which he called gabardine.

Incorporation/Establishment

Year: 1856

Burberry was established by Thomas Burberry, when he opened a clothing shop in Basingstoke,
England.

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Key Employees

KEY EMPLOYEES

Name Job Title Board Compensation

Gerry Murphy Chairman Executive Board
Gavin Haig Chief Commercial Officer Senior Management
Riccardo Tisci Chief Creative Officer Senior Management
Christopher Bailey Chief Creative Officer, Senior Management 1894000 GBP
President
Steve Sacks Chief Customer Officer Senior Management
Luc Goidadin Chief Design Officer Senior Management
Marco Gobbetti Chief Executive Officer, Executive Board
Director
Andrew Maag Chief Executive Officer- Senior Management
EMEA and Americas
Julie Brown Chief Financial Officer, Chief Executive Board
Operating Officer
Fumbi Chima Chief Information Officer Senior Management
Judy Collinson Chief Merchandising Officer Senior Management
Leanne Wood Chief People Officer, Senior Management
Corporate Affairs Officer
Orna NiChionna Director Non Executive Board
Ron Frasc Director Non Executive Board
Orna NiChionn Director Non Executive Board
Fabiola Arredondo Director Non Executive Board 166000 GBP
Ian Carter Director Non Executive Board 196000 GBP
Jeremy Darroch Director Non Executive Board 80000 GBP
Stephanie George Director Non Executive Board 183000 GBP
Matthew Key Director Non Executive Board 85000 GBP
Dame Carolyn McCall Director Non Executive Board 83000 GBP
Gianluca Flore President-Americas Senior Management

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Key Employee Biographies

KEY EMPLOYEE BIOGRAPHIES

Gavin Haig

Board:Senior Management
Job Title:Chief Commercial Officer
Since:2018

Mr. Gavin Haig has been the Chief Commercial Officer at the company since 2018. Previously he served
as Chief Executive Officer at Belstaff. He served as Managing Director at Cartier, where he led
commercial teams. He also served various senior positions at Alfred Dunhill and Wedgwood.

Riccardo Tisci

Board:Senior Management
Job Title:Chief Creative Officer
Since:2018

Mr. Riccardo Tisci has been the Chief Creative Officer at the comapny since 2018. Previously, he Tisci
served as Creative Director from 2005 to 2017 in Givenchy.

Christopher Bailey

Board:Senior Management
Job Title:Chief Creative Officer, President
Since:2017
Age:46

Mr. Christopher Bailey has been the President and Chief Creative Officer of the company since 2017.
Prior to this, Mr. Bailey served as Chief Executive Officer of the company from 2014 to 2017 and the
Chief Creative Officer from 2009 to 2017. He had joined the company in 2001 as a Design Director. Prior
to joining the company, he was a Senior Designer of Womenswear at Gucci from 1996 to 2001; and the
Womenswear Designer at Donna Karan from 1994 to 1996.

Marco Gobbetti

Board:Executive Board
Job Title:Chief Executive Officer, Director
Since:2017

Mr. Marco Gobbetti been the Chief Executive Officer and Director of the company since 2017. Prior to
this, Mr. Gobbetti served as chief executive and chairman of French luxury leather group Celine from
2008 to 2017.

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Andrew Maag

Board:Senior Management
Job Title:Chief Executive Officer-EMEA and Americas

Julie Brown

Board:Executive Board
Job Title:Chief Financial Officer, Chief Operating Officer
Since:2017
Age:56

Ms. Brown has been the Chief Operating and Financial Officer at Burberry since 2017. Previosuly, she
served as the Chief Financial Officer at Smith & Nephew from 2013 to 2017. Ms. Brown also worked at
ICI and AstraZeneca from 1987, where she held the positions of Vice President of Group Finance, Vice
President of Corporate Strategy, Regional Vice President Latin America and Interim Group Chief
Financial Officer. Currently, Ms. Brown serves as a Non Executive Director at Roche Holding.

Fumbi Chima

Board:Senior Management
Job Title:Chief Information Officer

Judy Collinson

Board:Senior Management
Job Title:Chief Merchandising Officer
Since:2017

Ms. Judy Collinson has been the Chief Merchandising Officer of the company since 2017. Prior to this,
she served as senior vice president-merchandising for Christian Dior for a period of five years. Earlier,
Ms. Collinson also served in Barneys New York, where she served in several leadership positions
including executive vice president and women’s general merchandising manager.

Leanne Wood

Board:Senior Management

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Job Title:Chief People Officer, Corporate Affairs Officer

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Major Products & Services

MAJOR PRODUCTS & SERVICES

Burberry designs, produces and sells luxury products across women's, men's and children’s apparel and
accessories, and beauty categories. The group's key products include the following:

Products:

Apparel
Bags
Scarves
Shoes
Key charms
Travel and digital
Belts
Hats and gloves
Umbrellas
Sunglasses and opticals
Jewellery
Home accessories
Ponchos and stoles
Candles and home scents
Gifts
Wallets
Ties
Watches
Fragrances
Makeup products
Make-up bags

Brand:

Burberry

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SWOT Analysis

SWOT ANALYSIS
Burberry Group plc (Burberry or 'the company') designs, produces and sells luxury products. Structured
operating model, extensive distribution network and revenue growth are its key strengths. whereas,
decline in operational performance of the company remain a concern. In the future, fast changing fashion
trends and pricing pressure, growing counterfeit goods market and intense competition might affect its
operations. However, growing online retail market in the UK, new contracts and agreements and growing
clothing and footwear industry in Europe might benefit its operations.

Strength Weakness

Structured Operating Model Declining Operational Performance

Extensive Distribution Network
Revenue Growth
Opportunity Threat

Growing Online Retail Market in the UK Intense Competition

Growing Clothing and Footwear Industry in Europe Growing Counterfeit Goods Market
Strategic Partnerships Fast Changing Fashion Trends and Pricing Pressure

Strength

Structured Operating Model

Burberry maintains a structured operating model. Under this model, the business is structured by
channel, region and product division, supported by core corporate functions. The group sells its products
to the end consumer through retail, wholesale, and licensing channels. The retail channel includes
mainline stores, concessions within department stores, digital commerce and outlets, whereas wholesale
channel includes sale of products to department stores, multi-brand specialty accounts, travel retail and
franchisees, and beauty products to nearly 80 distributors worldwide. In addition, licensing channel
includes income from Burberry's licensees, from Japan and from global product licensees (eyewear and
watches) and the European wholesale children's licensee. In FY2017, the retail/wholesale channel
accounted for 99.1% of the total revenues, and licensing 0.9%. Furthermore, Burberry operates in three
regions: Asia Pacific, EMEIA, and the Americas. Asia Pacific accounted for 39% of the total revenues in
FY2017, EMEIA 36.2%, and the Americas 24.8%. Under product mix, the group offers womenswear,
menswear, kidswear, accessories, and beauty products. Womenswear represented nearly 29% of the
retail/wholesale channel revenues in FY2017, menswear 22%, childrenswear 4%, accessories 38%, and
beauty products 7%. The group's corporate functions are classified into design, product development and
sourcing, merchandising and planning, supply chain, marketing, and customer insight, among others.
Therefore, the group's structured operating model provides it with a competitive advantage over its peers
and allows it to serve diverse range of customers.

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Extensive Distribution Network

Burberry operates through owned distribution network and third-party distribution network. The company’s
directly operated stores include 469 stores, or which 213 are located in Asia-Pacific, EMEA (153), the
Americas (103). Further ,it operates 209 mainline stores, of which62 in Asia Pacific, 73 in EMEIA and 74
in the Americas; Burberry operates 200 concession stores worldwide, of which 135 are in Asia Pacific, 57
in EMEIA and eight in the Americas region. The company operates 60 outlets, of which 16 are in Asia
Pacific, 23 in EMEIA and 21 in the Americas region. The group's owned distribution network also consists
of digital commerce (burberry.com), Third party distribution network consists of 48 Burberry franchise
stores. Thus, strong distribution network enables the group to reach an extensive customer base and
penetrate into the markets.

Revenue Growth

The company reported strong revenue growth in FY2017. Strong growth in revenue helps the company
gain investors' confidence and improving its ability to allocate adequate funds for future growth prospects.
In FY2017, Burberry reported revenues of GBP2,766 million as compared to GBP2,514.7 million in
FY2016, representing an annual growth of 9.9%. The growth in revenue was primarily due to strong
performance from its retail business. Total sales of Burberry retail business grew by 15.7% in FY2017 as
compared to previous fiscal year due growth in accessories by 14.5%; women’s wear by 8.6%; men’s
wear by 13.6%; and children’s wear by 19.1%.

Weakness

Declining Operational Performance

Burberry's operational performance decline in FY2017 despite growth in revenue by 9.9%. The company
reported decline in the operating income from GBP402.9 in FY2016 to GBP394.3 in FY2017. It also
reported a decline in the net income from GBP309.5 in FY2016 to GBP286.8 in FY2017. Its operating
margin operating margin was 14.2% in FY2017 compared to 16% in FY2016.

Opportunity

Growing Online Retail Market in the UK

The company stands to benefit from growing online retailing, which provides consumers the convenience
of shopping from home. With the increase in interactive methods and limitless content, the retail e-
commerce is growing at a faster rate. Rising internet penetration, user-friendly interface of web portals,
enhanced discounts and offers, changing consumer patterns and purchasing power are driving the
growth of e-retail market. The company took several initiatives to enhance its e-commerce operations. Its
e-commerce portals offer diverse range of products in various competitive prices and provide several
delivery options which enhance the shopping experiences of its customers and also enable the company
to increase the portal visits of these sites. Customers can also choose their favorable options based on
their preferred time and location. Burberry merchandises these products through its e-commerce portal

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burberry.com which further enrich its digital functionalities and technologies of these sites. According to
in-house research report, the online retail market reached a value of GBP41,389.7 million in 2015 and is
expected to further grow at a CAGR of 8% during 2015-20 to reach a value of GBP60,896.3 million by the
end of 2020. In terms of category, apparel, accessories, luggage & leather goods accounted for 26.1% of
total online sales in the UK, followed by electrical & electronics (24.1%), food & grocery (23.1%), other
(12.9%), sports & leisure equipment (5.7%), music, video & entertainment software (4.2%) and books,
news and stationery (3.8%). It could further enhance its competitive position in the e-commerce market,
which would help the company to enhance its sales through brand awareness and user friendly features
through its websites. Besides, it will save on the operating costs, which are much lower in the online retail
format as compared to physical store format. As the company holds strong presence in the UK, therefore
growing online market in the UK could increase the demand of company’s offerings.

Growing Clothing and Footwear Industry in Europe

The company stands to benefit from growing clothing and footwear industry in Europe. According to the in
house research report, the European footwear and clothing market reached US$429 billion by the end of
2015 and is expected to reach approximately US$499 billion by 2020. The European sales are expected
to account for 26% of the global total sales. Womenswear clothing is expected to account for 58.1% of
the total European retail sales followed by Menswear clothing at 29.4% and Childrenswear clothing at
12.6%. Women's footwear is expected to account for 53.7% of the total European retail sales followed by
Men's footwear for 27.6% and Children's footwear for 18.7%. Germany sales is expected to lead with a
share of 16.3% of the total sales followed by UK 14.7%, Italy 12.9%, Russia 11.6%, France 10.5%, Spain
6.5%, Turkey 4%, Poland 3.7%, The Netherlands 3.2%, Austria 2.4%, Sweden 2.3%, Belgium 2%,
Norway 1.5%, Portugal 1.5%, Denmark 1.1%, Romania 1.1%, Finland 1%, Ireland 0.7% Greece 0.7%,
Ukraine 0.6%, Hungary 0.6%, Czech Republic 0.5%, Slovakia 0.4% and Bulgaria 0.2%. The growth will
be primarily driven by growing world population, expanding base of middle class consumers, rising
standards of living, increasing household income and per capita spends. The growing market also offers
opportunity to increase market share beside sales.

Strategic Partnerships

Strategic partnerships enable the company to further expand its business operations. In February 2018,
the company entered into a partnership with Farfetch, a global technology platform for the fashion
industry. The partnership is expected to further strengthen the e-commerce presence of Burberry. In April
2017, the company entered into a partnership with Coty, Inc., a US-based provider of beauty products.
The partnership is expected to improve Burberry's luxury beauty products portfolio. Such contracts and
agreements could provide the company ample growth avenues and improve its financial performance.

Threat

Intense Competition

Burberry faces stiff competition in the global retail and apparel industry. The group faces competition from
other mainline stores, department stores, outlets and mass merchandisers. The primary competitive
factors in the markets are brand name recognition, sourcing, product styling, quality, presentation and

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pricing, timeliness of product development and delivery, store ambiance, customer service and
convenience. The retail apparel industry has low entry barriers which makes it easy for competitors to
enter. The group faces competition from companies like Hermes, Kering, Debenhams, Next, Christian
Dior SE, among others. In the international markets, Burberry faces high competition not only from the
global players but also from the local brands. Therefore, the group is vulnerable to extensive pricing
pressures adopted by competitors. The intense competition in the retail and apparel industry could put
pressure on prices and may lead to loss of market share for the group.

Growing Counterfeit Goods Market

The huge influx of counterfeit products could affect the company's business operations. Penetration of
counterfeit merchandise could lower the company's sales and affect its profit margins. Customers could
mistakenly purchase counterfeit products bearing fake labels, low quality of the products affect consumer
confidence and spoils the brand image of the genuine company. According to the International Chamber
of Commerce (ICC), counterfeiting and piracy are estimated to cost G20 countries over US$125 billion
every year. It is also estimated that 2.5 million jobs could be destroyed by counterfeiting and piracy.
Through low price offerings, the imitated goods affect the company's financial performance and brand
image. As the company deals with several national branded footwear, apparel and accessories products
at discounted prices, it is exposed to such challenges.

Fast Changing Fashion Trends and Pricing Pressure

The company which specializes in consumer fashion apparel and accessories could get affected by
rapidly changing fashion trends. An inherent characteristic of the fashion apparel industry is the short life
cycle of products, dependence on trends, the seasonality of sales and the susceptibility to abnormal
changes in weather conditions. Its business depends principally on the customer preferences and the
changing trends. The company has to adapt quickly to these changes to increase or maintain its business
in the competitive apparel industry. Usually, urban outfitters takes the decisions relating to the product
designs several months in advance and the customer acceptance cannot be measured. The company’s
business could be at risk as it manufactures its clothes well in advance and the trends may change by the
time the merchandise reach the customers. Presently, all the retail players are facing the pricing pressure
throughout the supply chain which includes introduction of new or enhanced products at lower price;
reduction of wholesale prices on existing products; increase in the retailer demands for allowances,
incentives and other forms of economic support and control over production and operating expenses.
Failure to anticipate, identify or react properly to changes in styles, trends, desired images or brand
preferences, could have a material adverse effect on the company’s sales, financial condition and the
results of its operations.

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Top Competitors

TOP COMPETITORS
The following companies are the major competitors of Burberry Group plc

Christian Dior SE
Debenhams plc
Hermes International SA
Kering SA
LVMH Moet Hennessy Louis Vuitton SE
Next Plc
Pandora A/S
Richemont SA

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Company View

COMPANY VIEW
A statement by Sir John Peace, the Chairman at Burberry, is given below. The statement has been taken
from the group's FY2017 annual report.

Last year I highlighted the fundamental changes taking place in the luxury sector and in consumer
behaviour. These were influenced by a challenging global environment, which had impacted the
performance of the sector as a whole, as demand slowed sharply in many of Burberry’s key markets. To
stay ahead of these changes and to create future value for shareholders, we announced an acceleration
of our productivity and efficiency agenda, particularly looking at our ways of working. We identified
significant future organic revenue growth opportunities and a programme of actions to deliver at least
£100m of annualized cost savings by FY 2019.

The Board also considered with Christopher Bailey, the shape of the leadership team required to
maximize our growth opportunities and to successfully implement these plans. It was concluded that there
was a need for a new chief executive with strong luxury retail experience to lead on the commercial,
operational and financial elements of the business, who could partner closely with Christopher, who
would continue his leadership of the brand and design elements of the business as President and Chief
Creative Officer. Since taking on the combined role of Chief Creative and Chief Executive Officer,
Christopher has made significant progress against a backdrop of challenging market conditions. The
Board is appreciative of his efforts in working with the Board to identify a new chief executive to partner
with him on the execution of our growth plans.

As Carol Fairweather and John Smith had signalled their intention to step down as Chief Financial Officer
and Chief Operating Officer respectively, focus was also on the succession of these roles, with the
decision to combine them to align with the change programme.
The Board unanimously supported the appointment of Marco Gobbetti as Chief Executive Officer who will
join the Board on 5 July 2017 (with Christopher transitioning to his new role at that time), and Julie Brown
who joined the Board as Chief Operating and Financial Officer on 18 January 2017. The Board believes
that the combination of Christopher’s creative talent and vision for Burberry and Marco’s extensive skills
in luxury and retail, as well as Julie’s financial and commercial track record, will provide strong leadership
for the next phase of Burberry’s evolution.

The Board would like to thank Carol Fairweather for her immense contribution to Burberry over the past
ten years, and John Smith for his contribution to Burberry over the past seven years, first as a non-
executive director and latterly as Chief Operating Officer. We wish them all the best for the future.

Financial performance and shareholder returns

As a whole, the luxury sector has continued to remain challenging during the year, with some signs of
improvement during the second half. We have made strategic long-term choices to strengthen the brand
and reposition Burberry for growth over time, and good progress with the implementation of our
programme including the establishment of our five key pillars to underpin our growth and productivity
agenda. More detail on our progress is set out in Christopher’s letter and in this Report.

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Company Overview

Burberry has delivered 2016/17 revenues of £2.8bn (down 2% underlying), and adjusted profit before tax
of £462m (up £42m and down 21% underlying). This was in part impacted by a decrease in licensing
profit due to the planned expiry of our Japanese licenses and other actions we have taken to build and
reinforce our brand positioning. We also delivered the planned £20m of cost savings in FY 2017. This is
expected to build to c. £50m in FY 2018 and is on track to deliver the target of at least £100m annualized
in FY 2019.

The Group ended the year with a strong cash balance of £809m, up £149m year-on-year after £97m of
share buyback and £164m of dividends. Consequently, the Board has recommended a 5% increase in
the full year dividend to 38.9p, in line with our progressive dividend policy resulting in a 50% pay-out ratio
based on adjusted earnings per share. This reflects the Board’s confidence in the future growth of the
business.

Our approach to capital allocation is based on a framework which defines our priorities for uses of cash,
underpinned by our principle to maintain a strong balance sheet with solid investment grade credit
metrics. This underlines our commitment to increasing shareholder returns over time, which remains a
key priority for the Board.

Over the past five years, Burberry has returned around £700m to shareholders through dividends, and in
April 2017 completed £100m of a £150m announced share buyback. A further share buyback of £300m
will be completed in FY 2018, in addition to the £50m already announced. This is inclusive of the
distribution of the Coty upfront sum.

Other Board developments

The composition of the Board has evolved significantly over the past few years with the appointment of
four new non-executive directors and one longer-serving Board member stepping down. Further changes
are planned over the coming year. The aim is to continue to refresh the Board while ensuring stability and
continuity, particularly in the context of significant management change.

Following a previous review of the Board Committees, changes were implemented during the year. This
included the appointment of Jeremy Darroch as Chair of the Audit Committee and Fabiola Arredondo as
Chair of the Remuneration Committee, as well as changes to the composition of those Committees.

People and pay

Our new Remuneration Policy will be presented to shareholders for their vote at our upcoming Annual
General Meeting (AGM), and so our Remuneration Committee Chair Fabiola Arredondo has been
meeting with our shareholders and consulting with them on the proposed Policy.

Governance and diversity

The Board seeks to operate to the highest standards of corporate governance. The work of the Board and
its Committees during the year, along with the assessment of its performance, is set out in the Corporate
Governance Report on pages 70 to 86. Burberry continues to support diversity in all its forms across the
organization including the Board. While all Board appointments are made on merit, the Board continues

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Company Overview

to believe in the importance of a diverse Board and has always had strong gender diversity amongst its
membership, including at executive level. The Board will continue to monitor diversity, including across
the business, and to take such steps as it considers appropriate to maintain its position as a meritocratic
and diverse business.

Looking ahead

To conclude, this has been an important year of change for Burberry, not only due to macro trends but
also the way that Burberry operates as a business. Looking ahead to 2017/18, we will continue to focus
on our brand, our products and the execution of our key strategies. Although there is still much to be done
as Burberry continues its multi-year programme, the Board firmly believes that the new leadership team
coupled with the actions we are taking, will significantly enhance our ability to deliver long-term
sustainable growth.

Finally, I would like to thank all of our people for their hard work and dedication, particularly during this
time of change for Burberry. I would also like to thank the Board for its hard work and commitment to
Burberry, and to thank you, our shareholders, for your support over the past 12 months.

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Company Overview

Locations And Subsidaries

LOCATIONS AND SUBSIDARIES

Head Office

Burberry Group plc

Horseferry House
Horseferry Road
London
England
London
England
GBR
Phone:44 207 8061328
www.burberryplc.com

Other Locations and Subsidiaries

Burberry (Deutschland) GmbH Burberry (Malaysia) Sdn. Bhd

DEU MYS
Burberry (Suisse) SA Burberry (Wholesale) Limited
CHE USA
Burberry Antwerp N.V. Burberry Asia Limited
BEL HKG
Burberry Canada Inc Burberry Czech Rep s.r.o.
CAN CZE
Burberry France SASU Burberry Italy Retail Limited
GBR
Burberry Pacific Pty Ltd Burberry Spain (UK) Limited
AUS GBR
Burberry USA Holdings Inc Burberry Wholesale 2005 Limited
USA GBR
Castleford Industries, Ltd Castleford Tailors, Ltd
USA USA
Hampstead (UK) Limited Temple Works Limited
GBR GBR
Thomas Burberry Limited Woodrow-Universal Pension Trustee Limited
GBR GBR

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Financial Overview

FINANCIAL OVERVIEW

Summarized Statement
*Note: Eliminations not included, all figures in Million except per share data.

Parameters Currency 2014 2015 2016 2017 2018

Income Statements
Total Revenue GBP 2,329.80 2,523.20 2,514.70 2,766.00 2,732.80
Gross Profit GBP 1,658.50 1,765.50 1,762.70 1,933.10 1,897.40
Operating Income GBP 445.40 440.30 402.90 394.30 410.30
Net Income GBP 322.50 336.30 309.50 286.80 293.50
Diluted Normalized EPS GBP 0.78 0.81 0.80 0.88 0.74
Balance Sheet
Total Current Assets GBP 1,210.30 1,334.00 1,494.90 1,638.60 1,541.70
Total Assets GBP 1,965.50 2,173.20 2,314.30 2,413.40 2,223.00
Total Current Liabilities GBP 631.70 580.80 539.00 565.10 552.90
Total Liabilities GBP 800.10 772.30 749.30 720.90 802.50
Total Equity GBP 1,165.40 1,400.90 1,565.00 1,692.50 1,420.50
Total Common Shares GBP 443.64 444.74 445.04 445.17 418.28
Outstanding
Cash Flow
Cash from Operating Activities GBP 425.20 454.90 411.30 560.70 678.40
Cash from Investing Activities GBP -153.60 -154.40 -137.50 -95.60 -44.90
Cash from Financing Activities GBP -151.80 -164.70 -167.10 -342.20 -536.10
Net Change in Cash GBP 105.90 149.70 108.10 148.90 82.90

Detailed Statement
*Note: Eliminations not included, all figures in Million except per share data.

Parameters Currency 2014 2015 2016 2017 2018

Income Statements
Revenue GBP 2,329.80 2,523.20 2,514.70 2,766.00 2,732.80
Total Revenue GBP 2,329.80 2,523.20 2,514.70 2,766.00 2,732.80
Cost of Revenue, Total GBP 671.30 757.70 752.00 832.90 835.40
Gross Profit GBP 1,658.50 1,765.50 1,762.70 1,933.10 1,897.40
Selling/ General/ Admin. GBP 1,075.30 1,187.60 1,214.10 1,332.00 1,307.60
Expenses, Total
Depreciation/ Amortization GBP 122.90 122.70 130.80 142.40 123.20

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Unusual Expense (Income) GBP 14.90 14.90 14.90 64.40 0.00

Other Operating Expenses, Total GBP 0.00 0.00 0.00 0.00 56.30
Total Operating Expense GBP 1,884.40 2,082.90 2,111.80 2,371.70 2,322.50
Operating Income GBP 445.40 440.30 402.90 394.30 410.30
Other, Net GBP -3.30 1.70 9.10 -4.00 -3.60
Net Income Before Taxes GBP 444.40 444.60 415.60 394.80 412.60
Provision for Income Taxes GBP 112.10 103.50 101.00 107.10 119.00
Net Income After Taxes GBP 332.30 341.10 314.60 287.70 293.60
Minority Interest GBP -9.80 -4.80 -5.10 -0.90 -0.10
Net Income Before Extra. Items GBP 322.50 336.30 309.50 286.80 293.50
Net Income GBP 322.50 336.30 309.50 286.80 293.50
Income Available to Com Excl GBP 322.50 336.30 309.50 286.80 293.50
ExtraOrd
Income Available to Com Incl GBP 322.50 336.30 309.50 286.80 293.50
ExtraOrd
Dilution Adjustment GBP 0.00 0.00 0.00 0.00 0.00
Diluted Net Income GBP 322.50 336.30 309.50 286.80 293.50
Diluted Weighted Average Shares GBP 447.30 447.80 446.10 442.20 429.40
Diluted EPS Excluding ExtraOrd GBP 0.72 0.75 0.69 0.65 0.68
Items
Diluted Normalized EPS GBP 0.78 0.81 0.80 0.88 0.74
DPS - Common Stock Primary GBP 0.32 0.35 0.37 0.39 0.41
Issue
Balance Sheet
Cash GBP 275.40 252.30 282.10 268.70 195.60
Short Term Investments GBP 270.10 365.10 429.70 574.80 719.70
Cash and Short Term GBP 545.50 617.40 711.80 843.50 915.30
Investments
Accounts Receivable - Trade, Net GBP 169.50 192.00 201.60 194.80 126.10
Total Receivables, Net GBP 212.90 243.50 253.00 246.70 172.70
Total Inventory GBP 419.80 436.60 486.70 505.30 411.80
Prepaid Expenses GBP 27.50 28.10 35.40 38.10 40.30
Other Current Assets, Total GBP 4.60 8.40 8.00 5.00 1.60
Total Current Assets GBP 1,210.30 1,334.00 1,494.90 1,638.60 1,541.70
Property/ Plant/ Equipment, Total GBP 849.30 970.30 1,078.20 1,176.30 1,106.00
- Gross
Accumulated Depreciation, Total GBP -450.90 -533.80 -652.00 -776.70 -792.40
Property/ Plant/ Equipment, Total GBP 398.40 436.50 426.20 399.60 313.60
- Net
Goodwill, Net GBP 80.20 88.80 88.80 99.60 88.40
Intangibles, Net GBP 115.20 104.70 100.80 70.50 91.70

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Long Term Investments GBP 2.60 2.20 2.40 2.60 2.60

Note Receivable - Long Term GBP 42.30 60.50 66.50 76.40 69.20
Other Long Term Assets, Total GBP 116.50 146.50 134.70 126.10 115.80
Total Assets GBP 1,965.50 2,173.20 2,314.30 2,413.40 2,223.00
Accounts Payable GBP 174.30 159.80 167.20 172.30 153.20
Accrued Expenses GBP 188.60 225.00 190.70 245.60 263.50
Notes Payable/ Short Term Debt GBP 143.00 65.20 51.50 34.30 23.20
Other Current liabilities, Total GBP 125.80 130.80 129.60 112.90 113.00
Total Current Liabilities GBP 631.70 580.80 539.00 565.10 552.90
Total Long Term Debt GBP 0.00 0.00 0.00 0.00 0.00
Total Debt GBP 143.00 65.20 51.50 34.30 23.20
Deferred Income Tax GBP 1.00 0.90 0.60 0.40 4.20
Minority Interest GBP 42.60 50.60 55.90 5.30 4.90
Other Liabilities, Total GBP 124.80 140.00 153.80 150.10 240.50
Total Liabilities GBP 800.10 772.30 749.30 720.90 802.50
Common Stock, Total GBP 0.20 0.20 0.20 0.20 0.20
Additional Paid-In Capital GBP 204.80 207.60 209.80 211.40 214.60
Retained Earnings (Accumulated GBP 850.10 1,046.10 1,182.00 1,210.10 987.20
Deficit)
Other Equity, Total GBP 110.30 147.00 173.00 270.80 218.50
Total Equity GBP 1,165.40 1,400.90 1,565.00 1,692.50 1,420.50
Total Liabilities & Shareholders' GBP 1,965.50 2,173.20 2,314.30 2,413.40 2,223.00
Equity
Total Common Shares GBP 443.64 444.74 445.04 445.17 418.28
Outstanding
Cash Flow
Net Income/ Starting Line GBP 445.40 440.30 402.90 394.30 410.30
Depreciation/ Depletion GBP 105.60 104.00 111.90 121.30 105.80
Amortization GBP 33.00 34.60 35.20 30.20 25.50
Non-Cash Items GBP 48.30 25.00 28.90 71.10 28.80
Changes in Working Capital GBP -207.10 -149.00 -167.60 -56.20 108.00
Cash from Operating Activities GBP 425.20 454.90 411.30 560.70 678.40
Capital Expenditures GBP -154.00 -155.70 -138.00 -104.10 -106.00
Other Investing Cash Flow Items, GBP 0.40 1.30 0.50 8.50 61.10
Total
Cash from Investing Activities GBP -153.60 -154.40 -137.50 -95.60 -44.90
Financing Cash Flow Items GBP 0.70 -3.40 -0.70 -68.90 -3.00
Total Cash Dividends Paid GBP -130.70 -144.90 -157.70 -164.40 -169.40
Issuance (Retirement) of Stock, GBP -21.80 -16.40 -8.70 -108.90 -363.70
Net

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Issuance (Retirement) of Debt, GBP 0.00 0.00 0.00 0.00 0.00

Net
Cash from Financing Activities GBP -151.80 -164.70 -167.10 -342.20 -536.10
Foreign Exchange Effects GBP -13.90 13.90 1.40 26.00 -14.50
Net Change in Cash GBP 105.90 149.70 108.10 148.90 82.90
Cash Interest Paid GBP 2.60 2.60 1.70 1.50 1.60
Cash Taxes Paid GBP 111.10 114.40 94.80 131.60 118.40

Summarized Interim Statement

Income Statements Currency Sep-2016 (6 Mar-2017 (6 Sep-2017 (6 Mar-2018 (6

Months) Months) Months) Months)
Total Revenue GBP 1,158.50 1,607.50 1,263.40 1,469.40
Gross Profit GBP 795.00 1,138.10 874.00 1,023.40
Operating Income GBP 102.40 291.90 126.50 283.80
Net Income GBP 72.00 214.80 92.90 200.60
Diluted Normalized EPS GBP 0.18 0.50 0.24 0.47
Balance Sheet Currency Sep-2016 Mar-2017 Sep-2017 Mar-2018
Total Current Assets GBP 1,422.30 1,638.60 1,447.70 1,541.70
Total Assets GBP 2,246.90 2,413.40 2,168.80 2,223.00
Total Current Liabilities GBP 587.70 565.10 567.90 552.90
Total Liabilities GBP 741.50 720.90 735.90 802.50
Total Equity GBP 1,505.40 1,692.50 1,432.90 1,420.50
Total Common Shares Outstanding GBP 445.10 445.17 438.50 418.28
Cash Flow Currency Sep-2016 (6 Mar-2017 (12 Sep-2017 (6 Mar-2018 (12
Months) Months) Months) Months)
Cash from Operating Activities GBP 118.30 560.70 223.60 678.40
Cash from Investing Activities GBP -43.20 -95.60 -52.70 -44.90
Cash from Financing Activities GBP -230.50 -342.20 -312.20 -536.10
Net Change in Cash GBP -131.20 148.90 -154.90 82.90

Detailed Interim Statement

Income Statements Currency Sep-2016 (6 Mar-2017 (6 Sep-2017 (6 Mar-2018 (6

Months) Months) Months) Months)
Total Revenue GBP 1,158.50 1,607.50 1,263.40 1,469.40
Cost of Revenue, Total GBP 363.50 469.40 389.40 446.00
Gross Profit GBP 795.00 1,138.10 874.00 1,023.40
Total Operating Expense GBP 1,056.10 1,315.60 1,136.90 1,185.60

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Operating Income GBP 102.40 291.90 126.50 283.80

Net Income GBP 72.00 214.80 92.90 200.60
Diluted Normalized EPS GBP 0.18 0.50 0.24 0.47
Revenue GBP 1,158.50 1,607.50 1,263.40 1,469.40
Other Operating Expenses, Total GBP 692.60 846.20 747.50 739.60
Other, Net GBP -2.10 -1.10 -1.00 -1.00
Net Income Before Taxes GBP 102.00 292.80 128.30 284.30
Provision for Income Taxes GBP 28.90 78.20 35.30 83.70
Net Income After Taxes GBP 73.10 214.60 93.00 200.60
Minority Interest GBP -1.10 0.20 -0.10 0.00
Net Income Before Extra. Items GBP 72.00 214.80 92.90 200.60
Income Available to Com Excl GBP 72.00 214.80 92.90 200.60
ExtraOrd
Income Available to Com Incl GBP 72.00 214.80 92.90 200.60
ExtraOrd
Dilution Adjustment GBP 0.00 0.00 0.00 0.00
Diluted Net Income GBP 72.00 214.80 92.90 200.60
Diluted EPS Excluding ExtraOrd Items GBP 0.16 0.49 0.21 0.47
DPS - Common Stock Primary Issue GBP 0.11 0.28 0.11 0.30
Diluted Weighted Average Shares GBP 444.30 440.10 434.80 424.00
Balance Sheet Currency Sep-2016 Mar-2017 Sep-2017 Mar-2018
Total Current Assets GBP 1,422.30 1,638.60 1,447.70 1,541.70
Total Assets GBP 2,246.90 2,413.40 2,168.80 2,223.00
Total Current Liabilities GBP 587.70 565.10 567.90 552.90
Total Liabilities GBP 741.50 720.90 735.90 802.50
Total Equity GBP 1,505.40 1,692.50 1,432.90 1,420.50
Cash & Equivalents 568.40 843.50 677.20 915.30
Cash and Short Term Investments GBP 568.40 843.50 677.20 915.30
Accounts Receivable - Trade, Net GBP 175.10 194.80 191.90 126.10
Total Receivables, Net GBP 218.70 246.70 233.60 172.70
Total Inventory GBP 573.50 505.30 445.10 411.80
Prepaid Expenses GBP 48.50 38.10 47.10 40.30
Other Current Assets, Total GBP 13.20 5.00 44.70 1.60
Property/ Plant/ Equipment, Total - GBP 424.80 399.60 347.90 313.60
Net
Intangibles, Net GBP 176.30 170.10 171.10 180.10
Long Term Investments GBP 2.60 2.60 2.60 2.60
Note Receivable - Long Term GBP 80.10 76.40 69.90 69.20
Other Long Term Assets, Total GBP 140.80 126.10 129.60 115.80
Accounts Payable GBP 176.10 172.30 174.50 153.20

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Accrued Expenses GBP 200.70 245.60 254.10 263.50

Notes Payable/ Short Term Debt GBP 39.30 34.30 22.90 23.20
Other Current liabilities, Total GBP 171.60 112.90 116.40 113.00
Total Long Term Debt GBP 0.00 0.00 0.00 0.00
Total Debt GBP 39.30 34.30 22.90 23.20
Deferred Income Tax GBP 1.70 0.40 0.50 4.20
Minority Interest GBP 5.40 5.30 5.10 4.90
Other Liabilities, Total GBP 146.70 150.10 162.40 240.50
Common Stock, Total GBP 0.20 0.20 0.20 0.20
Additional Paid-In Capital GBP 210.40 211.40 212.90 214.60
Retained Earnings (Accumulated GBP 1,031.50 1,210.10 987.20 987.20
Deficit)
Other Equity, Total GBP 263.30 270.80 232.60 218.50
Total Liabilities & Shareholders' Equity GBP 2,246.90 2,413.40 2,168.80 2,223.00
Total Common Shares Outstanding GBP 445.10 445.17 438.50 418.28
Cash Flow Currency Sep-2016 (6 Mar-2017 (12 Sep-2017 (6 Mar-2018 (12
Months) Months) Months) Months)
Cash from Operating Activities GBP 118.30 560.70 223.60 678.40
Cash from Investing Activities GBP -43.20 -95.60 -52.70 -44.90
Cash from Financing Activities GBP -230.50 -342.20 -312.20 -536.10
Net Change in Cash GBP -131.20 148.90 -154.90 82.90
Net Income/ Starting Line GBP 102.40 394.30 126.50 410.30
Depreciation/ Depletion GBP 58.30 121.30 52.90 105.80
Amortization GBP 18.60 30.20 13.80 25.50
Non-Cash Items GBP 42.70 71.10 23.50 28.80
Cash Taxes Paid GBP 65.20 131.60 49.50 118.40
Cash Interest Paid GBP 0.80 1.50 0.70 1.60
Changes in Working Capital GBP -103.70 -56.20 6.90 108.00
Capital Expenditures GBP -43.20 -104.10 -52.70 -106.00
Other Investing Cash Flow Items, GBP 0.00 8.50 0.00 61.10
Total
Financing Cash Flow Items GBP -68.80 -68.90 0.00 -3.00
Total Cash Dividends Paid GBP -118.60 -164.40 -123.00 -169.40
Issuance (Retirement) of Stock, Net GBP -43.10 -108.90 -189.20 -363.70
Foreign Exchange Effects GBP 24.20 26.00 -13.60 -14.50

Capital Market Ratios

Key Ratios July 11,2018

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P/E (Price/Earnings) Ratio 24.70

EV/EBITDA (Enterprise Value/Earnings Before Interest, Taxes, Depreciation and 0.00
Amortization)
Enterprise Value/Sales 0.00
Enterprise Value/Operating Profit 0.00
Enterprise Value/Total Assets 0.00
Dividend Yield 0.02
Market Cap 7,144.16
Enterprise Value 0.00

Note: The above ratios are based on

the share price as of July 11,2018,
they are absolute numbers
Annual Ratios

Key Ratios Unit Currency 2013 2014 2015 2016 2017

Growth Ratios
Sales Growth % 0.00 0.00 16.57 8.30 -0.34
Operating Income Growth % 0.00 0.00 28.80 -1.15 -8.49
EBITDA Growth % 0.00 0.00 22.98 0.00 -3.68
Net Income Growth % 0.00 0.00 26.82 4.28 -7.97
EPS Growth % 0.00 0.00 -4.72 2.80 -1.18
Working Capital Growth % 0.00 0.00 43.57 30.18 26.91
Equity Ratios
EPS (Earnings per Share) USD 0.00 0.57 0.72 0.75 0.69
Dividend per Share USD 0.00 0.29 0.32 0.35 0.37
Dividend Cover Absolute 0.00 1.96 2.25 2.13 1.88
Book Value per Share USD 0.00 2.30 2.63 3.15 3.52
Cash Value per Share USD 0.00 0.00 0.00 0.00 0.00
Profitability Ratios
Gross Margin % 0.00 72.15 71.19 69.97 70.10
Operating Margin % 0.00 17.30 19.12 17.45 16.02
Net Profit Margin % 0.00 12.72 13.84 13.33 12.31
Profit Markup % 0.00 259.03 247.06 233.01 234.40

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PBT Margin (Profit Before Tax) % 0.00 17.55 19.07 17.62 16.53
Return on Equity % 0.00 25.00 27.67 24.01 19.78
Return on Capital Employed % 0.00 29.24 33.39 27.65 22.69
Return on Assets % 0.00 14.56 16.41 15.47 13.37
Return on Fixed Assets % 0.00 44.35 58.98 52.47 49.17
Return on Working Capital % 0.00 85.81 76.98 58.46 42.15
Cost Ratios
Operating Costs (% of Sales) % 0.00 82.70 80.88 82.55 83.98
Administration Costs (% of Sales) % 0.00 45.19 46.15 47.07 48.28
Liquidity Ratios
Current Ratio Absolute 0.00 1.72 1.92 2.30 2.77
Quick Ratio Absolute 0.00 1.09 1.25 1.55 1.87
Cash Ratio Absolute 0.00 0.76 0.86 1.06 1.32
Leverage Ratios
Debt to Equity Ratio Absolute 0.00 0.13 0.12 0.05 0.03
Net Debt to Equity Absolute 0.00 0.36 0.36 0.23 0.21
Debt to Capital Ratio Absolute 0.00 0.11 0.11 0.04 0.03
Efficiency Ratios
Asset Turnover Absolute 0.00 1.14 1.19 1.16 1.09
Fixed Asset Turnover Absolute 0.00 4.89 5.85 5.78 5.90
Inventory Turnover Absolute 0.00 1.59 1.60 1.74 1.55
Current Asset Turnover Absolute 0.00 2.07 1.92 1.89 1.68
Capital Employed Turnover Absolute 0.00 1.97 2.00 1.80 1.61
Working Capital Turnover Absolute 0.00 4.96 4.03 3.35 2.63
Capex to Sales % 0.00 8.80 6.61 6.17 5.49
R&D to Sales % 0.00 0.00 0.00 0.00 0.00

Interim Ratios

Key Ratios Currency September March September March Ratio Type

01,2016 01,2017 01,2017 01,2018
EPS (Earnings per GBP 0.16 0.49 0.21 0.47 Equity Ratios
Share)
Dividend per Share GBP 0.11 0.28 0.11 0.30 Equity Ratios
Book Value per Share GBP 3.38 3.80 3.27 3.40 Equity Ratios
Current Ratio Absolute 2.42 2.90 2.55 2.79 Liquidity Ratios

Burberry Group plc Page 34

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