Burberry : Preliminary results for the year ended 31 March 2018

*See page 12 for definitions of alternative performance measures

• Riccardo Tisci appointed as Chief Creative Officer from March 2018
• Strategic acquisition to create centre of excellence for luxury leather goods
• Collections resonated with new customers and top-tier clients
• Retail excellence programme supported increased conversion in all regions
• Started evolution of distribution including strategic retail store closures as planned
• Launched collaboration with Farfetch, expanded reach to over 150 countries
• Cumulative cost savings of £64m, ahead of plan; Burberry Business Services live
• Successfully completed transfer of Beauty to Coty strategic partnership as planned

FY 2019 outlook

• Trading in line with guidance
• On track to deliver cumulative cost savings of £100m
• New share buyback of £150m announced

'In a year of transition, we are pleased with our performance as we began to execute our strategy. While the task of transforming Burberry is still before us, the first steps we implemented to re-energise our brand are showing promising early signs. With Riccardo Tisci now on board and a strong leadership team in place, we are excited about the year ahead and remain fully focused on our strategy to deliver long-term sustainable value.'

Marco Gobbetti, Chief Executive Officer

All metrics and commentary in the Group Financial Highlights and Business and Financial Review exclude adjusting items unless stated otherwise.

^#Constant exchange rates (CER) 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.

The following alternative performance measures are presented in this announcement: adjusted performance measures, comparable sales, revenue excluding Beauty wholesale, free cash flow, cash conversion and lease-adjusted net debt. The definition of these alternative performance measures are set out in the Appendix on page 12.

Cumulative cost savings are savings compared to FY 2016 operating expenses.

Certain financial data within this announcement have been rounded.

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