Annual Report 2023/24

Burberry is a British luxury brand headquartered in

London with alongstanding commitment to quality,

innovation, creativity and responsible business.

Our brand is built on the principles of Thomas Burberry,

who founded the Company in 1856. With his invention

of gabardine in 1879, Thomas revolutionised outerwear

and opened opportunities for adventurers toexplore

new spaces.

We continue that legacy today as we focus on bringing

our vision of Modern British Luxury to life.

MODERN BRITISH LUXURY

Photograph by Lord Lichfield

For further information, visit

Burberryplc.com

Strategic Report

Chair’s Letter 2

Chief Executive Officer’s Letter 4

FY 2023/24 Highlights 6

Non-Financial Highlights

Inspired by Heritage, Embracing Modernity 8

British Design, Responsible Craftsmanship 10

Creatively Driven, Positive Impact 12

Our Business Model 14

The Global Luxury Market in 2023 16

Our Strategy 18

Business Update 19

Financial Measures 22

Financial Review 24

Capital Allocation Framework 29

Environmental and Social Measures 30

Our Burberry Beyond Strategy 35

Product 37

Planet 41

People 48

Communities 58

Sustainability Bond – Use of Proceeds Report 64

Non-Financial and Sustainability Information Statement 65

Task Force on Climate-related Financial Disclosures 66

Stakeholder Engagement 80

Risk and Viability Report 83

Viability Statement 91

Corporate Governance Statement

Chair’s Introduction 94

Board of Directors 95

Executive Committee 100

Corporate Governance Report 101

Division of Responsibilities

Governance Structure and Division of Responsibilities 107

Composition, Succession and Evaluation

Board Evaluation 111

Report of the Nomination Committee 113

Audit, Risk and Internal Control

Report of the Audit Committee 118

Remuneration

Directors’ Remuneration Report 125

Directors’ Report 143

Financial Statements

Statement of Directors’ Responsibilities 148

Independent Auditor’s Report to the Members

ofBurberryGroup plc

149

Group Income Statement 160

Group Statement of Comprehensive Income 161

Group Balance Sheet 162

Group Statement of Changes in Equity 163

Group Statementof Cash Flows 164

Notes to the Financial Statements 165

Five-Year Summary 209

Company Balance Sheet 212

Company Statement of Changes in Equity 213

Notes to the Company Financial Statements 214

Shareholder Information 221

Burberry Annual Report 2023/24

Strategic Report | Chair’s Letter

STRONG PROGRESS TO ACHIEVE

OURAMBITIONS

Dear Shareholder,

It has been a challenging year. Since our CEO

Jonathan Akeroyd laid out his strategy to realise

Burberry’s potential as the Modern British Luxury

brand, there has been a slowdown in luxury demand

globally that has impacted our FY 2023/24 financial

results and made it harder to achieve our ambitions

asquickly as we would have liked.

Jonathan sets out in the following pages the progress

made in FY 2023/24 and his plans to adapt and

evolve Burberry’s creative expression, collections

andcustomer experience to reflect market conditions

and our own recent learnings. The Board remains

confident that Burberry’s strategic direction is right

and that Jonathan and our executive team have the

talent, energy and plans in place to deliver Modern

British Luxury for all of our stakeholders.

Governance and Board matters

In the context of a more challenging macroeconomic

environment the Board is mindful, more than ever, of the need

tooperate within a robust governance framework. During the

year, I have spoken to investors on a variety of topics, including

strategy, capital allocation, board composition and environmental

and social matters. We have concentrated on improving

ourgovernance disclosures within this Annual Report and

Ilookforward to continued engagement with shareholders

inthecoming year.

There have been a number of Board changes during FY 2023/24.

On behalf of the Board, I would like to thank Matthew Key,

whoretired from the Board on 12 July 2023, for his service to

Burberry, including as Audit Committee Chair. We welcomed

Kate Ferry, who joined the Board as Chief Financial Officer

on17 July 2023. Kate joined us from McLaren Group where,

asChief Financial Officer, she oversaw financial strategy

andinvestor relations.

It was also my pleasure to welcome Alessandra Cozzani who

joined the Board as an independent Non-Executive Director

on1 September 2023. Alessandra previously served as Chief

Financial Officer of Prada Group SpA and her financial and

luxury fashion expertise make her a valued addition to our

Board. Further information on Board recruitment and the

induction processes for Kate and Alessandra is provided

intheNomination Committee Report on pages 113 to 117.

Finally, Debra Lee will retire as a Non-Executive Director

following the 2024 Annual General Meeting (AGM). Since

joining the Board in October 2019, Debra’s insights and wise

counsel have helped influence how we do business. On behalf

of the Board, Ithank her for her valuable contribution to Burberry.

Shareholder returns

During FY 2023/24, we undertook a £400 million share buyback

programme and paid dividends of £233 million.

In accordance with our established Capital Allocation

Framework and progressive dividend policy, the Directors are

pleased to recommend a final dividend of 42.7p per ordinary

share, making the full year dividend 61.0p, subject to approval

atthe 2024 AGM. Thisisconsistent with FY 2022/23,

representing apay-out ratio of 83%, and reflects the Board’s

continued confidence in Burberry’s future growth,

notwithstanding currenttrading challenges.

Burberry Annual Report 2023/24

“The Board remains confident that Burberry’s strategic direction

isright and that Jonathan and our executive team have the talent,

energy and plans in place to deliver Modern British Luxury for all

ofour stakeholders.”

Looking ahead

As custodians of this extraordinary 168-year-old British brand,

we are committed to continuing to build on our founder

ThomasBurberry’s legacy. We are harnessing creativity to drive

responsible growth so that future generations can look back

and be proud of the steps we are taking to drive long-term

sustainable value, while making a positive contribution to our

people, our communities and our planet. Further information

onour Burberry Beyond sustainability strategy can be found

onpages 35 to 62.

With a shared vision of what it means to be the Modern British

Luxury brand, our colleagues across the world are building a

rich and exciting future for Burberry. I would like to thank them

for their passion and commitment over the past year. I would

also like to thank the Board and our shareholders for their

continued support.

Gerry Murphy

Chair

Burberry Annual Report 2023/24

Strategic Report | Chief Executive Officer’s Letter

Dear Shareholder,

Over the past year, we have focused on executing

our plan to realise Burberry’s potential as the Modern

British Luxury brand. While the progress we have

made on our journey is not yet reflected in our results,

which underperformed our original expectations

forFY 2023/24, we have made advances, starting

withthe launch of our new creative expression and

building to the delivery of Daniel Lee’s first collections.

Since September, we have seen a slowdown in luxury

demand globally. We are adapting to the additional

challenges that this presents while in a creative

transition. I am confident in our ability to successfully

navigate this period and continue to leverage the

unique attributes that make Burberry special to

achieve our growth ambition.

FY 2023/24 performance

In terms of our financial performance in FY 2023/24:

• Revenue was £2.97 billion, flat at constant exchange rates

(CER) and down 4% on a reported basis

• Adjusted operating profit was £418 million, down 25% at CER

• Reported operating profit was £418 million, down 36%

• Adjusted diluted earnings per share (EPS) was 73.9p, down

30% at CER

• Reported diluted EPS was 73.9p, down 41%

Regionally, Europe, Middle East, India and Africa (EMEIA) and

Asia Pacific grew in the full year at CER, while the Americas

continued to underperform. Tourism supported growth in Europe,

Japan and Southeast Asia, led by customers from Mainland China.

A new creative expression

We have a clear strategy to achieve our vision across brand,

product and distribution, supported by operational excellence,

people and talent, values and sustainability. In the past

12 months, wehave made advances in each of these areas.

Ourbrand ismore focused, our offer is more elevated and we

have continued to strengthen our distribution, while delivering

operational improvements.

As we implement our strategy, we can see how customers are

responding to our new creative expression and importantly

where the opportunities are. We are using what we have

learnedto fine-tune our approach, while adapting to the

externalenvironment.

Our British heritage is a position of strength and we are

leveraging and reinterpreting this to give a more contemporary,

modern feel to our storytelling. Focusing on what makes us

unique is helping to clarify what we stand for in the minds of

consumers. At the same time, we have amplified our messaging

through high-visibility activations, such as our takeover of

Harrods, which have driven awareness and consideration

among luxury consumers.

While we have received positive feedback from fashion insiders

about our new creative expression, we recognise the power

ofthe timeless, classic attributes that Burberry is known for

andwe are refining our storytelling so it incorporates more

ofthese elements. We are also shifting the emphasis of our

communications to place more focus on building desirability

around our key categories. This is important not only in areas

ofstrength, such as outerwear and softs, which outperformed

inthe year, but also in categories for which we are less well

known, such as bags and shoes and where we see significant

opportunities for expansion.

“I am confident in our ability to successfully navigate this period and

continue to leverage the unique attributes that make Burberry special

to achieve our growth ambition.”

DELIVERING THE TRANSITION

TOMODERN BRITISH LUXURY

Burberry Annual Report 2023/24

Evolving our collections

Since Daniel’s debut collection, which landed in stores

inSeptember, we have started to evolve our collections.

Ourseasonal fashion offer is now more elevated and relevant,

and this is resonating with our top clients. We will build on this

with our Winter 2024 collection, celebrating outerwear.

In parallel, we have begun to refresh our core offer with Burberry

Classics, released in March. With this collection, wehave

animated the Burberry Check in new colourways across anedit

of essential wardrobe pieces that include items made with at

least 50% organic or recycled materials. The initial response

from customers has been very encouraging and weare excited

about the opportunity here.

As Daniel grows in the role of Chief Creative Officer, we will

continue to build a more balanced offer between seasonal

fashion and core collections, which are particularly important in

the current market environment. We will also continue to expand

our offer across categories so we can provide our clients with

afull range of wardrobe staples.

We have invested significantly in the quality of our offer and

inthe choice of materials we are using, particularly in leather

goods. Our assortment of handbags is much more elevated

thanbefore with new image-driving shapes, such as the Knight

and Rocking Horse, which complement our existing core offer.

Building credibility in this area will take time, as it will in shoes

where we have started to establish a new, broader range.

Iremain excited about our plans for both categories and

convinced of the opportunity.

Elevating the customer experience

Burberry has a well-established retail network in high-visibility

locations that we have continued to strengthen over the year,

including a new store on Avenue Montaigne in Paris and our

newly refurbished store in Ocean Centre in Hong Kong S.A.R.,

China. The majority of our stores are now new or refurbished

and continue to perform ahead of comparable stores in terms

ofproductivity. We will continue to roll out our programme this

year, while increasing control of distribution in EMEIA to ensure

it reflects our elevated positioning.

E-commerce has been impacted by changes in consumer

behaviour, which have been widely reported across the sector.

Wecontinue to believe that digital is an important part of the

omnichannel journey and as such we are investing in elevating

the shopping experience on Burberry.com and in tools to

support our client advisors with remote selling.

Enabling delivery

Operational excellence remains key. Over the past year, we

have reconfigured our supply chain to deliver our new elevated

offer. We have also strengthened our internal manufacturing

capabilities with the acquisition and integration of a product

development business from one of our longstanding technical

outerwear partners. We will continue to focus on delivering

process and technology improvements to support the business.

I am proud that we have also continued to advance our

sustainability agenda this year, particularly in the areas of

responsible sourcing, circular business models, net zero and

inspiring young people. We are fully committed to building

onour momentum in this area in FY 2024/25.

Looking ahead

As we reflect on the past 12 months and look to the year

ahead,Iwould like to take this opportunity to thank my Burberry

colleagues for their continued passion and commitment. I also

want to thank our Burberry Board members for their support.

Ahuge amount of work has gone into operationalising our strategy

over the past year. We are fortunate to have such astrong and

complementary team.

In the context of a still uncertain external environment, we

expect the first half of FY 2024/25 to remain challenging and

the benefit of the actions we are taking to start coming through

from the second half. We remain confident in our strategy and

clear about our priorities, and we will continue to focus on

execution while staying agile.

Burberry remains an extraordinary brand and business with

aunique position within the UK and the luxury industry globally.

We are committed to seizing the opportunities that lie ahead

torealise our potential as the Modern British Luxury brand.

Jonathan Akeroyd

Chief Executive Officer

“We have a clear strategy to achieve our vision across brand, product

and distribution, supported by operational excellence, people and

talent, values and sustainability. In the past 12 months, we have made

advances in each of these areas.”

Burberry Annual Report 2023/24

FY 2023/24 HIGHLIGHTS

Total revenue

£2,968m

(FY 2022/23: £3,094m)

Revenue by region (£m) Revenue by channel (£m) Revenue by product (£m)

Operating profit

£418m

(2022/23: £657m)

Adjusted diluted EPS

73.9p

(2022/23: 122.5p)

Dividend per share

61.0p

(2022/23: 61.0p)

Diluted EPS

73.9p

(2022/23: 126.3p)

Cash (net of overdrafts)*

£362m

(2022/23: £961m)

Adjusted operating profit

£418m

(2022/23: £634m)

2023/ 24

£m

2022/ 23

£m

Asia Pacific

239 stores

1,286 1,297

EMEIA

100 stores

1,017 1,004

Americas

83 stores

603 743

2023/24

£m

2022/ 23

£m

Retail

2,400 2,501

Wholesale

506 543

Licensing

62 50

2023/24

£m

2022/ 23

£m

Accessories

1,055 1,125

Womenswear

860 867

Menswear

842 868

Childrenswear

andother

149 184

* The Group also had borrowings at 30 March 2024 of £299m (1 April 2023: £298m).

Strategic Report | FY 2023/24 Highlights

Burberry Annual Report 2023/24

422

Directly operated stores

9,336

Colleagues

219,377

People positively impacted in FY 2023/24

through community programmes

supportedby Burberry Group plc and

TheBurberryFoundation

45.9

Reduction in scope 3 emissions from

aFY2018/19 base year

Key raw materials in our products certified

or responsibly sourced in FY 2023/24

(asdefined in our Sustainable Raw

MaterialsPortfolio)

^ This metric was subject to external independent limited assurance by PricewaterhouseCoopers LLP (PwC). For the results of that assurance, see PwC’s Independent Limited

Assurance Report and Burberry’s Responsibility Basis of Reporting FY 2023/24 on Burberryplc.com/impact/Resource-Hub.

Burberry Annual Report 2023/24

Synonymous with British style, the Burberry HeritageTrench Coat has

beena wardrobe staple for over a century and is aglobal fashion icon.

INSPIRED BY HERITAGE,

EMBRACINGMODERNITY

Explore more online

With his invention of gabardine, Thomas

Burberry raised the bar for performance

outerwear. Weather resistant and

breathable, the fabric opened opportunities

for everyone from city dwellers to Arctic

adventurers to explore the outdoors.

A quintessentially British take on outerwear,

the Burberry Heritage Trench Coat is a global

fashion icon and emblematic of Burberry’s

positioning as the Modern British Luxury

brand. Classic styles are regularly reworked

and reinterpreted, reflecting the inspiration

we derive from our heritage.

Discover...

Our refocused brand storytelling

Page 19

Our elevated aesthetic across product categories

Page 20

Our strengthened distribution network

Page 21

Burberry Annual Report 2023/24

We are proud of our British manufacturing heritage. Our products are

designed with a focus on using certified and responsibly sourced materials.

BRITISH DESIGN,

RESPONSIBLE CRAFTSMANSHIP

Explore more online

We are proud to continue our

founder’slegacy of championing British

craft andproduction, and are focused

onmanufacturing excellence.

We make products at Burberry-owned

sites in the UK and Italy,as well as

incollaboration with anetwork of

globalsuppliers.

Over the last six years, we have

alsoacquired two businesses from

longstanding suppliers to enhance our

in-house capabilities in leather goods

and technical outerwear. This allows

useven greater control over the quality,

delivery and sustainability ofourproducts.

Target for

100%

of key raw materials in

ourproducts to be certified

or responsibly sourced

byFY2029/30 (as defined

inourSustainable Raw

MaterialsPortfolio)

Discover...

Our commitment to responsible craftsmanship

Page 37

How we are embedding circular business models

Page 38

Our pledge to reach Net Zero by 2040

Page 42

Burberry Annual Report 2023/24

As a responsible business, we are committed to delivering sustainable

long-term value whileplaying a positive role in society.

CREATIVELY DRIVEN,

POSITIVE IMPACT

Explore more online

Throughout its history, Burberry has been

inextricably linked to exploration of the

great outdoors. The environment continues

to be our inspiration today, and we are

playing our part in protecting it for future

generations by factoring sustainability

considerations into our business decisions.

We uphold Thomas Burberry’s values by

fostering creativity and championing British

artists and cultural institutions. His altruistic

legacy inspires the work of The Burberry

Foundation and our Burberry Inspire youth

empowerment programme.

Target to

positivelyimpact

500,000

people between FY 2022/23

and FY 2025/26, particularly

young people hailing from

underserved communities

Discover...

How we are evolving our culture

Page 49

How Burberry Inspire is helping young people to build

brighter futures

Page 59

Spark, Burberry’s volunteering and fundraising platform

Page 61

Burberry Annual Report 2023/24

Our purpose

We believe that Creativity Opens Spaces. The choices

wemakeas a Company and our long-term goals are shaped

byour desire to harness creativity to open new opportunities

and effect change.

Our values

Our purpose is supported by four values which encompass

whatwe expect from ourselves and each other. We are

creatively driven, forward thinking, open and caring, and

proudof our heritage.

Inspired by the principles ofour founder, Thomas Burberry, our purpose and values play an important role

inframing our business model and guiding how we operate.

OUR BUSINESS MODEL

Strategic Report | Business Model

Our business model is rooted in British craftsmanship

We combine traditional craftsmanship and innovative manufacturing techniques to create desirable products. Our design teams

arebased in London, where we are headquartered. We weave gabardine and make our Heritage Trench Coats at our mill and factory

in Yorkshire, UK. Our classic Burberry Check cashmere scarves are made in Scotland. We operate wholly-owned leather goods and

technical outerwear centres of excellence in Italy, and we work with a network of global suppliers.

We work to responsibly

source materials of the

highest quality to make

products that will stand the

test of time. When making

business decisions, we

consider environmental

impacts and the wellbeing

ofeveryone in our value chain,

from our people to our

communities.

We design products which

are elevated by our house

codes. Our teams collaborate

to innovate and deliver on our

common goals so that we

continually inspire and

delight our customers.

We sell our products through

our network of directly

operated and franchised

stores, online and via

wholesale channels.

Inspecial categories we

workwith licensing partners

to benefit from their product

and distribution expertise.

We continue our founder’s

legacy of championing

Britishcraft and production.

We manufacture our luxury

products at Burberry-owned

sites in theUK and Italy, and

in partnership with a network

of global suppliers.

Burberry Annual Report 2023/24

Our heritage and our future are inspired by the natural world

Outfitting adventurers for a variety of experiences, climates and terrains is core to the Burberry story. Thomas Burberry’s invention

ofgabardine revolutionised outerwear and opened opportunities for people to explore far-flung destinations as well as closer-to-home

rural and urban spaces. We continue Thomas Burberry’s pioneering legacy today.

Shareholders

We aim to create sustainable long-term

value for ourshareholders. We allocate

capital by reinvesting for organic growth,

paying dividends through a progressive

policy, allocating capital to strategic

inorganic investments, and delivering

additional returns to shareholders.

Formoreinformation see our Capital

Allocation Framework on page 29.

Customers

We create unique and engaging

opportunities for our customers to explore

theworld of Burberry and discover our

products. Webuild and reinforce connections

with our brand through memorable

experiences in-store and online.

People

Our people are our greatest asset and

westrive to provide a rich and rewarding

colleague experience. We aim to create

workplaces where our people can express

their creativity and feel a sense of belonging.

Weseek to protect and enhance the lives

ofthose in our supply chain, while respecting

and upholdinghuman rights across

ourvaluechain.

Communities

We are committed to supporting local

communities where we operate, with a

particular focus on assisting young people

through the work ofTheBurberry Foundation.

Our global youth empowerment programme,

Burberry Inspire, works in partnership with

local youth-focused organisations to create

opportunities for young people by unlocking

their creativity and amplifying their voices.

Environment

Under the banner of our Burberry

Beyondstrategy, we have set ambitious

science-based targets to reach Net Zero by

2040. We are working to reduce our impact

on the environment and protect nature.

Concurrently, we are building resilience

toenvironmental and social risks to ensure

the long-term success of our business.

We deliver value for all stakeholders while playing a positive roleinsociety

Burberry represents Modern British Luxury to the world. We do this by designing and manufacturing beautiful products,

engaging our customers, challenging ourselves tobe creative and continuing to be a sustainable and responsible

business. We listen to our stakeholders and innovate tocreate value for them.

Purpose-driven people are key to our performance

We are an open and inclusive employer. Weareguidedby our purpose and values. Ourpeople’s diversity of skills, backgrounds

andlife experiences drive innovation within our business. We are proud that our colleagues represent 132 nationalities across

33countries andterritories.

Burberry Annual Report 2023/24

THE GLOBAL LUXURY MARKET IN 2023

Strategic Report | The Global Luxury Market in 2023

1. Refers to number of countries and territories in which Burberry has a store presence or ships to directly and via partners.

2. All growth rates reported at current exchange rates, unless stated otherwise.

Source: Bain Altagamma Luxury Goods Worldwide Market Study, Fall 2023.

Burberryoperates within the globalpersonal luxury market, with a presence in over 140 countries

andterritories

around the world.

Below is an analysis ofrecent global market trends and performance for the year ending 31 December 2023.

Product categories

Across the luxury market, all product categories recorded low-

to mid-single-digit growth in 2023, slowing significantly from

the previous year’s double-digit growth rate. Apparel grew 5%

to 6%. Leather goods grew by 3% to 4%, largely driven by price

increases. Shoes grew 2% to 3%, impacted by the category’s

reliance on aspirational shoppers.

Channels and distribution

Following a robust performance in 2022, monobrand retail

stores sustained growth of 11% in 2023, while online channel

sales fell by5%. This was driven by growing customer desire for

in-store experiences, increasing tourism across regions, and a

decline in spending by aspirational consumers who have a

greater tendency to shop luxury online and to be affected by

macroeconomic uncertainty. Wholesale continued to lose

market penetration in 2023 as a result of consumers’ increasing

preference for direct-to-consumer channels.

The global personal luxury market reached €362 billion in 2023,

representing year-on-year growth of 8% at constant exchange

rates, and a deceleration from 15% growth in 2022. Growth rates

varied by region, with a slowdown occurring globally in the

second half of the year.

Asia

Mainland China’s personal luxury goods market grew by 9%

in2023

. Japan was the fastest growing region in Asia at 17%.

This growth was attributed to the recovery of Chinese tourism

following severe disruption during the COVID-19 pandemic,

aswell as a weakened yen. Excluding Mainland China and

Japan, the rest of Asia grew by 8% compared to the previous

year. Thiscan be attributed to tourism from Mainland China,

from which Hong Kong S.A.R., China, and Macau S.A.R., China,

benefited most. Southeast Asia, particularly hubs such as

Thailand, saw equally strong growth. Conversely, South Korea

showed a weakened performance due to macroeconomic

challenges and adverse tourism flows.

Americas

In the Americas, the luxury market declined by 8% compared

to2022. The decrease, which followed a strong performance

tothe prior year, was primarily linked to cautious spending

behaviour locally amid an uncertain macro-environment.

Factorssuch as inflation and the depletion of pandemic savings,

exemplified by the end of COVID-19 USA government stimulus

check payments, played a significant role. While these factors

notably affected aspirational shoppers, the top customer

groupremained resilient but directed their spending outside

theAmericas.

Europe (including the UK) and the

MiddleEast

Europe’s luxury market recorded 7% growth compared to 2022.

Growth surged in the first half, propelled by a strong increase

intourism across countries and territories, with tourism-linked

luxury spending, largely driven by American travellers, surpassing

pre-pandemic levels. The region faced a progressive slowdown

in the second half of the year, driven byasoftening inlocal

consumer spending as a result of challenging macroeconomic

conditions. The UK continued to be impacted by the withdrawal

of tax-free shopping and tourists diverting spending elsewhere.

The Middle East registered strong growth, driven by Dubai and

the growing relevance of Saudi Arabia asadestination for

luxury tourism expenditure.

Burberry Annual Report 2023/24

Key trends

The personal luxury market’s performance wassupported

bytourism spending, strong generational trends and resilient

demand from the top customer group. It was also bolstered

bysolid fundamentals, such as continued product elevation

andluxury brands’ power to inspire and engage customers.

Thefollowing key themes impacted the industry in2023:

Multi-generational demand and prioritisation

ofhigh-spending customers

The personal luxury market customer base continued to

expandacross generations, spend levels and geographies.

Demographically, Gen Y (born between 1981 and 1996) drove

45% of spending in 2023 and is projected to remain dominant,

while Gen Z (born between 1997 and 2012) held a 20% share

and is expected to grow rapidly to become the second largest

segment by 2030. Gen Z’s demand for impact and purpose

exceeds Gen Y’s pursuit of experiences and emotional

connections. By income bracket, high-spending customers are

increasingly taking share of the market, driven by the high-net-

worth and ultra-high-net-worth population continuing to expand

its wealth. Acknowledging this trend, brands are embracing

multi-generational segmentation, as well as having focused

client strategies to appeal to high-spending customers.

Brand marketing with a new influencer playbook

In response to rising performance marketing costs and data

policies around customer targeting, brands are working to build

deeper emotional connections with their customers. To increase

engagement, they are leveraging the personalities behind their

brands; telling stories that evoke their brand values; investing in

experiences; and collaborating with celebrities and influencers.

For more information see Our Strategy and Business Update sections on pages 18 to 21.

Source: McKinseyState of Fashion 2024.

Progressing our

responsibility

commitments

through Burberry

Beyond

Improving

operational delivery

and driving

efficiencies

Improving the retail

store experience

andfocusing on

conversion, while

elevating online

Building out our

product offer,

ensuring balance

between seasonal

and core collections

Enhancing

desirability and

deepening our

connection with

ourcustomers

How Burberry is responding

In response to key market trends, Burberry is focused on:

Brands are forging deeper relationships with more authentic

content creators and leveraging short videos on social media

ascustomers, particularly Gen Z, seek relatable and entertaining

content beyond the product offer. In doing so, brands are

increasingly willing to relinquish a degree of creative control.

Price elevation alongside refined valueproposition

The personal luxury market saw continued price elevation

across categories at both the entry and top end of the range,

while volumes also contracted. Brands are revisiting their value

propositions to cover the positioning gap and broadening their

offers to ensure they have compelling entry-price products.

Having a tailored pricing approach will be key for brands serving

aspirational clientele, while also targeting the top customer

group, particularly as volume growth is set to weaken further.

Increasing urgency around sustainability andfaster

pace of transformation

Brands continued to make progress in their sustainability

agendas. New regulations are coming into force spanning the

whole value chain, from sourcing and production to traceability

and end-of-life waste. Simultaneously, customers are demanding

more sustainable products. Addressing these needs requires

ashift towards greater supply chain transparency and due

diligence, the use of more sustainable materials, and embedding

sustainability targets across businesses.

Burberry Annual Report 2023/24

OUR STRATEGY

Strategic Report | Our Strategy

Our vision is to realise Burberry’s potential as the Modern British Luxury brand. We have a clear strategy

toachieve this across brand, product and distribution, supported by operational excellence, people and talent,

andvalues and sustainability.

Our ambition is to grow annual revenue to £4 billion. Underpinning this, we have set targets to double

ourleather goods sales, more than double shoe sales, double women’s ready-to-wear and grow outerwear

by1.5times. We also aim to improve store productivity to £25,000 per square metre per annum, and double

e-commerce sales, to reach ~15% retail penetration.

Modern British Luxury

Harness the power

ofourbrand

Bring all product

categoriesto full potential

Strengthen

distribution

Operations

Operational

excellence

People and talent Values and

sustainability

Burberry Annual Report 2023/24

BUSINESS UPDATE

Following the launch of our new creative expression in February

2023, we have focused on leveraging our Britishness and

reinterpreting our heritage to give our storytelling a more

contemporary, modern feel.

Bringing to life our first end-to-end expression of Modern British

Luxury, our Winter 2023 campaign celebrated our connection

tothe outdoors with a multicultural portrait of the British Isles.

Captured by Tyrone Lebon, imagery incorporated a distinctive

visual language and featured new and established house codes.

At the same time, we amplified our messaging and drove

awareness and consideration through high-visibility activations

inkey cities, including New York, Shanghai, Seoul and London.

Our series of city takeovers, Burberry Streets, celebrated the

arrival of our Winter 2023 collection in stores and online with

anurban twist.

During the year, we have focused on what makes Burberry

unique, reinforcing our connection with Britishness and our

heritage of the outdoors. We held our Summer 2024 show

inatent in Highbury Fields during London Fashion Week in

September 2023. Theevent helped amplify our brand visibility

and received positive press responses as well as good customer

engagement. OurSpring 2024 campaign focused on discovering

London’s urban landscape, underscoring our deep connection

withthe city.

We explored Burberry’s connection with craftsmanship and

nature with our Winter 2024 show, which was held at London’s

Victoria Park. The show told a cohesive story celebrating

outerwear, and was very well attended by some of the most

exciting talent from the worlds of art, film, music and sport.

FY 2024/25 Priorities

Enhance desirability and deepen the connection with

our customers

• Continue to refine brand expression, incorporating

more timeless, classic attributes in communications

• Increase product focus in storytelling, with

dedicated moments for key categories

• Prioritise marketing investment in Mainland China

and the USA to strengthen brand visibility and

consumer engagement

• Strengthen customer recruitment and engagement

through locally relevant campaigns and activations

Brand

English garden flowers and summer fruits coloured our Summer

2024 campaign which put a summertime spin on outdoor living.

Set against a Caribbean backdrop, the collection referenced

Burberry’s British heritage as well as our icons which were

reimagined for the summer season.

We believe our British heritage is a position of strength and

weare building on this. We are refining our storytelling so

itincorporates more of the timeless, classic attributes that

Burberry is known for. We are also shifting the emphasis of our

communications to building desirability around our key product

categories now that we have introduced our new aesthetic.

Burberry turns Harrods Knight Blue

In February 2024, we staged a takeover of Harrods to mark the department

store’s 175

anniversary. The event saw the storied building illuminated in

Burberry’s Knight Blue hue and its signature green canopies replaced with

tent-inspired awnings in a seasonal Burberry Check. Thetraditional green

uniforms of the store’s famed doormen were redesignedto feature a Knight

Blue Burberry Check, too.

To highlight Burberry’s heritage of exploration and links to the outdoors,

camping equipment featured in the department store’s windows and a Burberry

Camping Corner offered hiking accessories, including an exclusive water bottle

and a limited-edition orienteering map of the surrounding Knightsbridge

neighbourhood. A Burberry food truck offered a menu of British pastries

andhot drinks, while a picnic area featured benches in Knight Blue.

A dedicated rainwear space showcased Burberry trench coats and offered

insights into our brand’s heritage, while pop-up spaces housed a limited-edition

capsule collection, which included womenswear, menswear and childrenswear

pieces, as well as accessories.

An in-store digital experience offered a new way to interact with Burberry, while

an online take on the event was accessible via the multiplayer gameRoblox.

Burberry Annual Report 2023/24

Strategic Report | Business Update

Product

During FY 2023/24, we started to evolve our collections in line

with our new creative vision.

Our seasonal offer is now more elevated and relevant and this

isresonating with our top clients.

We have also begun to reinvigorate our larger, core offer.

InMarch, we released Burberry Classics, an edit of essential

wardrobe pieces animating the Burberry Check in new colourways.

The collection includes pieces made with at least 50% organic

or recycled materials. We are excited about the opportunity here.

In outerwear, we have a strong foundation in heritage

rainwearthat continues to attract customers to the brand.

Wecontinue to build on this momentum with new shapes and

fabrics. We have also introduced more diversity into our offer

with coats and jackets.

We dressed VIPs and brand ambassadors in Heritage Trench

Coats and new styles at our Summer 2024 and Winter 2024

shows. We also launched a new exclusive scarf and Trench

collection in partnership with Highgrove. The collection features

illustrations of Highgrove Gardens which surround the private

residence of His Majesty King Charles III and Queen Camilla.

In ready-to-wear, we have refined and elevated our seasonal

offer, including introducing a stronger feminine aesthetic.

Wehave also begun to evolve our assortment across price

points, particularly in Men’s, and are rebuilding our jersey offer.

Ourfocus is on building a complete everyday assortment

acrossready-to-wear.

We have invested significantly in the quality of our offer and

inthe choice of materials we are using, particularly in leather

goods, which performed broadly in line with the Group average.

We have introduced new image-driving shapes, including the

Knight and Rocking Horse, which complement our existing core

offer. We also continued to support the Burberry Check.

Scarves are an area of strength. We have a good cashmere

offerthat continues to attract customers to the brand. We have

re-energised the assortment with new colours and fabrics,

whileexpanding our fashion offer.

In shoes, we have started to develop a more complete offer

across functions which complements our ready-to-wear

collections and gives us the opportunity to provide our clients

with a full range of wardrobe staples. As part of our Winter 2023

collection, we partnered with Northampton, England-based

shoemaker Tricker’s to create an exclusive collection

oftraditionally crafted footwear.

During the year, we also launched our latest fragrance Burberry

Goddess, which has been highly successful.

FY 2024/25 Priorities

Build out our product offer, ensuring balance between

seasonal and core collections

• Build on outerwear category strengths

• Develop full product offer in ready-to-wear

• Balance assortment and increase visibility

incommunications for bags

• Expand softs category with focus on functions,

fabrics and colour

• Continue to develop shoe offer

Outerwear layers heritage and modernity

Our new creative vision for Burberry has focused on elevating outerwear through evolutions

in cuts, the incorporation of performance fabrics and craftsmanship. Classic pieces are

reinterpreted with new takes on shapes and textiles to create the iconic looks of tomorrow.

Trench coats, duffle coats and field jackets are reworked to feature tactile fabrics, including

moleskin, shearling and fleecy wool, while traditional craft techniques from the British Isles

are a nod to Burberry’s long-held tradition of championing craftsmanship. House codes,

including the Equestrian Knight Design and Burberry Check, are revisited and reinterpreted

in new and surprising ways. The approach has struck a chord with existing Burberry

customers while also appealing to new audiences.

Burberry Annual Report 2023/24

FY 2024/25 Priorities

Continued focus on operational delivery and

commitment to sustainability

• Unlock speed and elevate customer experience

withfocus on strategic categories

• Drive cost efficiencies

• Deliver process and technology improvements

• Maintain pace of delivering our sustainability targets

Distribution Operations

In terms of distribution, we enhanced and elevated the customer

experience in-store and online.

We have a well-established network of stores in high-visibility

locations, which we have continued to strengthen. The majority

of our stores, including most of our flagships, are now new

orrefurbished. We opened a new store on Avenue Montaigne

inParis in early 2024, and reopened refurbished stores in

NewBond Street, London and Ocean Centre, Hong Kong S.A.R.,

China. Our new and refurbished stores continue to perform

ahead of comparable stores in terms of productivity.

We have begun to elevate the shopping experience on

Burberry.com. The site reflects our new brand aesthetic and has

a greater focus on product with an improved customer journey.

We continue to invest in enhancing our omnichannel capabilities

and personalising the shopping experience for our customers.

To support our strategic priorities, we continued to deliver

operational improvements.

During the year, we reconfigured our supply chain to deliver

ournew elevated offer, and improved product availability across

our core replenishment lines. We have also strengthened our

internal manufacturing capabilities with the acquisition and

integration of a product development business from technical

outerwear partner Pattern SpA.

From a sustainability point of view, we continued to make strong

progress against our commitments across responsible sourcing,

circular business models, net zero and inspiring youngpeople.

We have evolved our refresh and repair aftercare services and

developed new circular business models, including our partnership

with Vestiaire Collective, enabling our customers to trade-in

their pre-loved Burberry pieces. We have also developed

plastic-free consumer packaging and launched our Burberry

Classics collection, continuing responsibly sourced materials.

We continued our efforts to positively impact the lives of young

people through dedicated programmes, such as Burberry

Inspire and the Thomas Burberry Prize for Print, as well as

partnerships with The BRIT School, Save the Children and the

Evening Standard Winter Survival Appeal. We also partnered

with Tate Britain to support artist Sarah Lucas on projects

celebrating British arts and culture.

Read more about our responsibility commitments

onpages35to 62.

FY 2024/25 Priorities

Enhance retail store experience, focus on conversion

and elevate online experience

• Continue to deliver store refurbishment programme

• Strengthen visual merchandising in store

• Focus on clienteling and styling

• Maximise commercial opportunity for Burberry.com

and expand omnichannel capabilities

• Rationalise wholesale channel with focus on EMEIA

Burberry Annual Report 2023/24

Strategic Report | Key performance indicators

FINANCIAL MEASURES

Revenue growth* Comparable sales growth* Adjusted operating

profitgrowth*

Adjusted operating profitmargin Adjusted diluted EPSgrowth Adjusted Group ROIC

This measures the appeal of the

Burberry brand to customers through

all of our saleschannels.

This measures the growth in

productivity of existing stores. It is

calculated as the annual percentage

increase in sales from retail stores

thathave been open for more than

12 months. It is adjusted for permanent

closures and refurbishments, and

includes all digital revenue.

This measure tracks our ongoing

operating profitability and reflects the

combination of revenue growth and

cost management.

This measures how we drive operational

leverage and disciplined cost control,

with thoughtful investment for future

growth building the long-term value

ofthe brand.

Growth in adjusted diluted EPS reflects

the increase in profitability of the

business, movement in the tax rate

andshare repurchase accretion.

Adjusted Group ROIC measures

theefficient use of capital on

investments. It is calculated as the

post-tax adjusted Group operating

profit divided by average adjusted

operating assets over the period.

Measured by Measured by

CER Revenue growth % CER Comparable store

salesgrowth %

CER Adjusted operating

profitgrowth %

Adjusted operating

profitmargin%

Adjusted diluted EPSgrowth% Adjusted Group ROIC %

flat -1% -25% 14.1% -40% 15.3%

2024

flat

2023

+5%

£2,968m

£3,094m

£2,826m

£2,344m

2022

+23%

2021

-10%

2024

-1%

2023

+7%

2022

+18%

2021

-9%

2024

£418m

2023

£634m

£523m

£396m

-25%

+8%

2022

+38%

2021

-8%

2024

14.1%

2023

20.5%

2022

18.5%

2021

16.9%

2024

-40%

2023

+30%

73.9p

122.5p

94.0p

67.3p

2022

+40%

2021

-14%

2024

15.3%

2023

28.6%

2022

24.6%

2021

17.0%

Performance Performance

FY 2023/24 revenue was flat at

constant exchange rates.

FY 2023/24 comparable sales

decreased by 1% in the year.

Adjusted operating profit in FY2023/24

decreased by 25% at constant

exchange rates. This was as aresult

of theinvestment in product cost and

increases in operating costs from the

store refurbishment programme.

Adjusted operating profit margin

declined by 640 bps which was 500

bps at constant exchange rates as a

result of a reduction of 170 bps in gross

margin at constant exchange rates

following increased stock provisions

and investment inproduct and an

increase in net operating expenses of

7% at constant exchange rates.

Adjusted diluted EPS decreased by

40% year-on-year, due to the reduction

in adjusted operating profit, the

increase in the tax rate partially offset

by the accretion from the share

buyback.

Adjusted Group ROIC decreased to

15.3%, mainly due to the decrease in

adjusted operating profit and the

increase in tax rate. Average operating

assets increased by12%.

* At constant exchange rates and adjusted for the 53

week in FY 2021/22.

Details of alternative performance measures are shown on pages 27 and 28.

Burberry Annual Report 2023/24

Revenue growth* Comparable sales growth* Adjusted operating

profitgrowth*

Adjusted operating profitmargin Adjusted diluted EPSgrowth Adjusted Group ROIC

This measures the appeal of the

Burberry brand to customers through

all of our saleschannels.

This measures the growth in

productivity of existing stores. It is

calculated as the annual percentage

increase in sales from retail stores

thathave been open for more than

12 months. It is adjusted for permanent

closures and refurbishments, and

includes all digital revenue.

This measure tracks our ongoing

operating profitability and reflects the

combination of revenue growth and

cost management.

This measures how we drive operational

leverage and disciplined cost control,

with thoughtful investment for future

growth building the long-term value

ofthe brand.

Growth in adjusted diluted EPS reflects

the increase in profitability of the

business, movement in the tax rate

andshare repurchase accretion.

Adjusted Group ROIC measures

theefficient use of capital on

investments. It is calculated as the

post-tax adjusted Group operating

profit divided by average adjusted

operating assets over the period.

Measured by Measured by

CER Revenue growth % CER Comparable store

salesgrowth %

CER Adjusted operating

profitgrowth %

Adjusted operating

profitmargin%

Adjusted diluted EPSgrowth% Adjusted Group ROIC %

flat -1% -25% 14.1% -40% 15.3%

2024

flat

2023

+5%

£2,968m

£3,094m

£2,826m

£2,344m

2022

+23%

2021

-10%

2024

-1%

2023

+7%

2022

+18%

2021

-9%

2024

£418m

2023

£634m

£523m

£396m

-25%

+8%

2022

+38%

2021

-8%

2024

14.1%

2023

20.5%

2022

18.5%

2021

16.9%

2024

-40%

2023

+30%

73.9p

122.5p

94.0p

67.3p

2022

+40%

2021

-14%

2024

15.3%

2023

28.6%

2022

24.6%

2021

17.0%

Performance Performance

FY 2023/24 revenue was flat at

constant exchange rates.

FY 2023/24 comparable sales

decreased by 1% in the year.

Adjusted operating profit in FY2023/24

decreased by 25% at constant

exchange rates. This was as aresult

of theinvestment in product cost and

increases in operating costs from the

store refurbishment programme.

Adjusted operating profit margin

declined by 640 bps which was 500

bps at constant exchange rates as a

result of a reduction of 170 bps in gross

margin at constant exchange rates

following increased stock provisions

and investment inproduct and an

increase in net operating expenses of

7% at constant exchange rates.

Adjusted diluted EPS decreased by

40% year-on-year, due to the reduction

in adjusted operating profit, the

increase in the tax rate partially offset

by the accretion from the share

buyback.

Adjusted Group ROIC decreased to

15.3%, mainly due to the decrease in

adjusted operating profit and the

increase in tax rate. Average operating

assets increased by12%.

* At constant exchange rates and adjusted for the 53

week in FY 2021/22.

Details of alternative performance measures are shown on pages 27 and 28.

Burberry Annual Report 2023/24

Strategic Report | Financial review

FINANCIAL REVIEW

Our financial performance in the year reflected the challenges of implementing a creative transition against

abackdrop of slowing luxury demand. In spite of this, goodprogress was made on refining our brand image,

evolving our product and strengthening distribution.

The performance metrics and commentary included in the Financial Review exclude adjusting items unless stated otherwise.

Thealternative performance measures presented in this section include: CER, adjusted profit measures, comparable sales,

freecashflow, cash conversion, adjusted EBITDA and net debt. The definitions of these alternative performance measures

areonpages 27 and 28.

Revenue

• Revenue of £2,968

million was flat to the

prior year at constant

exchange rates and

fell -4% on a reported

basis with comparable

store sales fell -1%

• Outerwear up 8%, led

by heritage rainwear

Adjusted

operating profit

• Adjusted operating

profit of £418 million

decreased 25% at

constant exchange

rates and 34% on

areported basis due

toa combination

ofincreased stock

provisions and

investment in product

and an increase in

property costs from

increased

depreciation from the

refurbishment

programme and

increased right of use

assets partially offset

by disciplined cost

control

• Adjusted operating

margin of 14.1%

decreased 500 bps at

constant exchange

rates and 640 bps on

a reported basis in line

with this

Summary income statement

Period ended

£ million

52 weeks

ended

30 March 2024

52 weeks

ended

1 April 2023

YoY % change

Reported FX

YoY % change

CER

Revenue 2,968 3,094 (4) flat

Cost of sales* (959) (912) 5 6

Gross profit* 2,009 2,182 (8) (3)

Gross margin* 67.7% 70.5% (280 bps) (170 bps)

Net operating expenses* (1,591) (1,548) 3 7

Net opex as a % of sales* 53.6% 50.0% 360 bps 330 bps

Adjusted operating profit* 418 634 (34) (25)

Adjusted operating profit margin* 14.1% 20.5% (640 bps) (500 bps)

Adjusting operating items – 23

Operating profit 418 657 (36)

Operating profit margin 14.1% 21.2% (710 bps)

Net finance charge** (35) (23) 52

Profit before taxation 383 634 (40)

Taxation (112) (142) (21)

Non-controlling interest (1) (2)

Attributable profit 270 490 (45)

Adjusted profit before taxation* 383 613 (37) (28)

Adjusted diluted EPS (pence)* 73.9 122.5 (40) (30)

Diluted EPS (pence) 73.9 126.3 (41)

Weighted average number of diluted

ordinary shares (millions) 366.2 388.0 (6)

* Excludes adjusting items. All items below adjusting operating items on a reported basis unless otherwise stated.

Fordetail,see note 6 of the Financial Statements.

** Includes adjusting finance charge of £nil (FY23: £2m).

Financial Performance

Revenue by channel

Period ended

£ million

52 weeks

ended

30 March 2024

52 weeks

ended

1 April 2023

YoY % change

Reported FX

YoY % change

CER

Retail 2,400 2,501 (4) 1

Comparable store sales growth -1% 7%

Wholesale 506 543 (7) (5)

Licensing 62 50 23 23

Revenue 2,968 3,094 (4) flat

Burberry Annual Report 2023/24

Retail

• Comparable store sales decreased -1% with a strong 10%

firsthalf growth more than offset by a decline of 8% in the

second half

• Space increased 2% leading to total retail revenue growth

of1% at constant exchange rates

• Retail revenue fell -4% on a reported basis following

aheadwind from foreign exchange

Comparable store analysis by region

Asia Pacific

Asia Pacific comparable store sales grew +3% in the year.

Thefourth quarter fell -17% on tough comparatives with local

customers challenged across the region

• Mainland China comparable store sales increased +2%

intheyear and fell -19% in the fourth quarter. The Mainland

Chinese customer group fell -12% in the fourth quarter with

tourism accounting for almost a quarter of the customer

group sales globally

• South Korea fell -8% in the year and -17% in the fourth quarter

with South Koreans purchasing abroad up double-digit

percentage, with tourist spend mainly in EMEIA and Japan

• Japan saw strong comparable store sales growth up +25%

inthe year and +18% in the fourth quarter

• South Asia Pacific rose +4% in the year with a slowdown in

the last quarter to -24% driven by a declining local customer

not fully offset by tourist spend

EMEIA

EMEIA saw comparable store sales up +4% in the year but down

-3% in the fourth quarter.

• The region benefited from strong tourist growth but with

some pressure from local consumer spending

Americas

• Americas fell -12% both in the year and in the fourth quarter

where we are continuing to see a relatively broad-based

decline in the region across our local customers

Comparable store analysis by product

By product, luxury customers continued to gravitate towards

categories for which we are known.

• We saw a very strong performance from our outerwear

thatgrew by a high single digit percentage in the year,

ledbyHeritage rainwear

• Scarves also performed well, up a double digit percentage

inthe year.

• Leather goods performed broadly in line with the group

average with a better performance from bags, while small

leather goods were slower as we developed the category

• Ready-to-wear for both men’s and women’s were below

thegroup average, declining by a mid singe digit percentage

in the year.

Store footprint

The transformation of our distribution network continued

duringthe year taking over 50% of the network now upgraded

to therefurbished concept.

• We opened 22 full price stores, closed 14 stores with 2 outlets

opened and 2 closed

• Including refurbishments, we increased the number

ofupdated stores by 79

• Most of our key doors are now new or refurbished including

our new store on Avenue Montaigne in Paris and the newly

refurbished store in Ocean Centre, Hong Kong S.A.R., China

• We now have over 50% of the network completed and plan to

finish the roll out by FY27

Wholesale

• Wholesale revenue decreased -5% at constant exchange

rates (-7% at reported rates) due to pressure intheAmericas

Licensing

• Licensing revenue grew 23% at both constant exchange rates

and reported exchange rates supported by the launch of our

latest fragrance, Burberry Goddess

Operating profit analysis

Adjusted operating profit

Period ended

£ million

52 weeks

ended

30 March

2024

52 weeks

ended

1 April

2023

YoY %

change

Reported FX

YoY %

change

CER

Revenue 2,968 3,094 (4) flat

Cost of sales* (959) (912) 5 6

Gross profit* 2,009 2,182 (8) (3)

Gross margin %* 67.7% 70.5% (280 bps) (170 bps)

Net operating

expenses* (1,591) (1,548) 3 7

Net operating

expenses as a %

ofsales* 53.6% 50.0% 360 bps 330 bps

Adjusted

operating profit* 418 634 (34) (25)

Adjusted

operating profit

margin %* 14.1% 20.5% (640 bps) (500 bps)

* Excludes adjusting items.

Adjusted operating profit declined 25% at constant exchange

rates and 34% reported with the margin down -500 bps and

-640 bps respectively:

• The gross margin was 67.7%, a decrease of 170 bps at

constant exchange rates and 280 bps at reported exchange

rates following increased stock provisions and investment in

product that was not fully offset by pricing. The impact related

to regional and channel mix effects and a benefit from

transportation costs broadly netted-off.

Burberry Annual Report 2023/24

• Adjusted net operating expenses rose by +7% at constant

exchange rates and +3% at reported exchange rates primarily

due to property costs from increased depreciation and

amortisation on the refurbishment programme, impairments,

rent increases and utility cost increases partially offset

bydisciplined cost control

• Reported adjusted operating profit was £418m, including

a£60m foreign exchange headwind in the year, achieving

areported adjusted operating margin of 14.1%

Adjusting items*

There were no adjusting items in the current year (FY23: £21m

net credit).

Period ended

£ million

52 weeks

ended

30 March

2024

52 weeks

ended

1 April

2023

The impact of COVID-19

Inventory provisions – 1

Rent concessions – 13

Store impairments – 6

Government grants – 2

COVID-19 adjusting items** – 22

Restructuring costs – (16)

Profit on sale of property – 19

Revaluation of deferred consideration

liability – (2)

Adjusting operating items – 23

Adjusting financing items – (2)

Adjusting items – 21

* For more details see note 6 of the Financial Statements.

** Includes £nil (FY23: £1m credit) that has been recognised through COGS.

The key adjusting items in the prior year are as follows:

• Total credit of £22m from COVID-19-related adjusting items

• £16m of restructuring costs

• Net £19m profit on the sale of an owned property in the USA

Adjusted profit before tax*

After an adjusted net finance charge of £35m (FY23: £21m),

adjusted profit before tax was £383m (FY23: £613m).

* For detail on adjusting items see note 6 of the Financial Statements.

Taxation*

The effective tax rate on adjusted profit increased to 29.2%

(FY23: 22.2%) primarily due to the increase in the UK corporation

tax rate. The reported tax rate on profit before taxation was

also29.2% (FY23: 22.4%).

* For detail see note 9 of the Financial Statements.

Total tax contribution

The Group makes a significant economic contribution to the

countries and territories where it operates through taxation

either borne by theGroup or collected on behalf of and paid to

the relevant tax authorities. In FY 2023/24, the total taxes borne

and collected globally by the Group amounted to £529 million.

In the UK, where the Group is headquartered and has significant

operations, Burberry paid business taxes of £157 million and

collected afurther £66 million of taxes on behalf of the UK

Exchequer. Forfurther information see Burberryplc.com.

Cash flow and leverage

Summary statement of cash flows

The following table is a representation of the cash flows,

excluding financing cash flows to align with our definition

offree cash flow.

Period ended

£ million

52 weeks

ended

30 March

2024

52 weeks

ended

1 April

2023

Adjusted operating profit 418 634

Depreciation and amortisation 379 344

Working capital (166) (76)

Other including adjusting items 34 10

Cash generated from operating

activities 665 912

Payment of lease principal and related

cash flows (235) (210)

Capital expenditure (208) (179)

Proceeds from disposal of non-current

assets – 32

Interest (20) (22)

Tax (139) (140)

Free cash flow 63 393

Free cash inflow* was £63m in the year (FY23: £393m).

The major components were:

• Cash generated from operating activities decreased

by£247m to £665m from £912m primarily due to a £216m

reduction in adjusted operating profit and a working capital

outflow of £166m, £90m greater outflow compared with last

year (FY23: £76m outflow) mainly due to higher inventory

following weaker than expected sell through.

• Capital expenditure of £208m (FY23: £179m) as we continued

to prioritise store refurbishments

• Proceeds from disposal of non-current assets were £nil

(FY23: £32m from the disposal of owned property)

• Tax cash of £139m, a decrease of £1m compared to the

prioryear with lower profitability offset by the higher UK

corporation tax rate

Cash net of overdrafts on 30 March 2024 was £362m

comparedto £961m on 1 April 2023. On 30 March 2024,

borrowings were £299m from the bond issue leaving cash net

of overdrafts and borrowings of £63m (1 April 2023: £663m).

With lease liabilities of £1,188m, net debt in the period was

£1,125m (1 April 2023: £460m). Net Debt/Adjusted EBITDA was

1.4x, above our target range of 0.5x to 1.0x. Theincrease

inleverage from 0.5x at 1 April 2023 has been driven bythe

lower profitability, working capital outflow and the share

buyback programme.

Period ended

£ million

52 weeks

ended

30 March

2024

52 weeks

ended

1 April

2023

Adjusted EBITDA – rolling 12 months 797 975

Cash net of overdrafts (362) (961)

Bond 299 298

Lease debt 1,188 1,123

Net Debt* 1,125 460

Net Debt/Adjusted EBITDA 1.4x 0.5x

* For a definition of free cash flow and net debt see page 28.

Strategic Report | Financial review

Burberry Annual Report 2023/24

Alternative performance measures

Alternative performance measures (APMs) are non-GAAP measures. The Board uses the following APMs to describe the Group’s

financial performance and for internal budgeting, performance monitoring, management remuneration target setting and external

reporting purposes.

APM Description and purpose GAAP measure reconciled to

Constant

Exchange

Rates (CER)

This measure removes the effect of

changes in exchange rates compared to

the prior period. The constant exchange

rate incorporates 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.

Results at reported rates

Comparable

Sales

The year-on-year change in sales from

stores trading over equivalent time

periods and measured at constant

foreign exchange rates. It also includes

online sales. This measure is used to

strip out the impact of permanent store

openings and closings, or those closures

relating to refurbishments, allowing

acomparison of equivalent store

performance against the prior period.

Retail Revenue:

Period ended YoY%

52 weeks ended

30 March 2024

52 weeks ended

1 April 2023

Comparable sales (1%) 7%

Change in space 2% (1%)

CER retail 1% 6%

week – (2%)

FX (5%) 6%

Retail revenue (4%) 10%

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 should be excluded to

provide a consistent and comparable

view of performance.

Reported Profit:

A reconciliation of reported profit before tax to adjusted profit

before tax and the Group’s accounting policy for adjusted profit

before tax are set out in the financial statements.

Outlook

In the year ahead, we will focus on deepening the connection

with our customers as we execute our priorities across

brand,product and distribution. We will continue to balance

investment inconsumer-facing areas with disciplined cost

control to support our growth ambition. In the context of a

stilluncertain external environment, we expect retail space to

be broadly stable with capex expected to be around

£150 million in FY25. We have retained the proposed dividend

for the current year in line with the capital allocation policy.

Based on foreign exchange rates effective as of 25 April 2024,

we now expect a currency headwind of around £30m to revenue

and around £20m to adjusted operating profit in FY25.

Store portfolio

Directly-operated stores

Stores

Con-

cessions Outlets Total

Franchise

stores

At 1 April 2023 219 138 56 413 35

Additions 22 8 2 32 1

Closures (14) (7) (2) (23) (3)

At 30 March 2024 227 139 56 422 33

Store portfolio by region*

Directly-operated stores

At 30 March 2024 Stores

Con-

cessions Outlets Total

Franchise

stores

Asia Pacific 122 94 23 239 9

EMEIA 46 36 18 100 24

Americas 59 9 15 83 –

Total 227 139 56 422 33

* Excludes the impact of pop-up stores.

Burberry Annual Report 2023/24

APM Description and purpose GAAP measure reconciled to

Free Cash Flow Free cash flow is defined as net cash

generated from operating activities less

capital expenditure plus cash inflows

from disposal of fixed assets and

including cash outflows for lease

principal payments and other lease

related items.

Net cash generated from operating activities:

Period ended £m

52 weeks ended

30 March 2024

52 weeks ended

1 April 2023

Net cash generated from

operatingactivities 506 750

Capex (208) (179)

Lease principal and related

cashflows (235) (210)

Proceeds from disposal

ofnon-current assets – 32

Free cash flow 63 393

Cash

Conversion

Cash conversion is defined as free cash

flow pre-tax/adjusted profit before tax.

Itprovides a measure of the Group’s

effectiveness in converting its profit

intocash.

Net cash generated from operating activities:

Period ended £m

52 weeks ended

30 March 2024

52 weeks ended

1 April 2023

Free cash flow 63 393

Tax paid 139 140

Free cash flow before tax 202 533

Adjusted profit before tax 383 613

Cash conversion 53% 87%

Net Debt Net debt is defined as the lease liability

recognised on the balance sheet plus

borrowings less cash net of overdrafts.

Cash net of overdrafts:

Period ended £m

As at

30 March 2024

As at

1 April 2023

Cash net of overdrafts 362 961

Lease liability (1,188) (1,123)

Borrowings (299) (298)

Net debt (1,125) (460)

Adjusted

EBITDA

Adjusted EBITDA is defined as operating

profit, excluding adjusting operating

items, depreciation of property, plant

and equipment, depreciation of right of

use assets and amortisation of intangible

assets. Any depreciation or amortisation

included in adjusting operating items are

not double counted. Adjusted EBITDA

isshown for the calculation of Net Debt/

EBITDA for our leverage ratios.

Reconciliation from operating profit to adjusted EBITDA:

Period ended £m

52 weeks ended

30 March 2024

52 weeks ended

1 April 2023

Operating profit 418 657

Adjusting operating items – (23)

Amortisation of intangible assets 42 37

Depreciation of property,

plantandequipment 103 95

Depreciation of right-of-use assets* 234 209

Adjusted EBITDA 797 975

* Excludes £nil depreciation on right-of-use assets included in adjusting items (FY23: £3m).

Strategic Report | Financial review

Burberry Annual Report 2023/24

CAPITAL ALLOCATION FRAMEWORK

Strategic Report | Capital Allocation Framework

Our strategy and targets are governed by our Capital

AllocationFramework, which we use to prioritise the use

ofcash. This framework addresses the investment needs of

thebusiness, regular dividend payments and additional returns

toshareholders. The framework also seeks to maintain an

appropriate capital structure for the business and a strong

balance sheet with a solid investment grade credit rating.

Net Debt/Adjusted Earnings Before Interest, Taxes,

Depreciation and Amortisation (EBITDA) was 1.4x at FY 2023/24

(FY 2022/23: 0.5x) on a rolling 12-month period, above our

target range of 0.5x to 1.0x. We continue to be a cash generative

business and are comfortable with this current leverage position

which is consistent with our policy to maintain an investment

grade credit rating as we go through our creative transition.

Thediagram below summarises the key priorities of ourframework.

Maintain a strong balance sheet with a solid investment grade credit rating

• Review the principal risks of the Group and relevant financial parameters, both historical and projected, including liquidity,

netdebt and measures covering balance sheet strength.

• These risks and financial parameters are considered by the Board when assessing the viability of the Group, as set out

onpages 83 to 92.

Capital structure metrics FY 2023/24 FY 2022/23

Cash net of overdrafts £362m £961m

Lease liability (£1,188m) (£1,123m)

Borrowings (£299m) (£298m)

Net debt (£1,125m) (£460m)

Net debt/EBITDA 1.4x 0.5x

Reinvest for

organicgrowth

Capital spend across store

portfolio, including new

spaces and refurbishments;

IT infrastructure, including

digital; and the supply chain.

Spend includes investment

inEnvironmental, Social

andGovernance initiatives,

for example, costs incurred

inmeeting our Sustainability

Bond use of proceeds

commitments set out

onpage64.

Progressive

dividendpolicy

The absolute amount

ofdividend per share will

remain stable or increase

ona full-year basis, broadly

targeting a pay-out of around

50% of adjusted earnings

pershare at reported rates

ofexchange. The interim

dividend pay-out is 30%

ofthe absolute value of the

prior year full-year dividend.

Inorganic strategic

investment

Investment in acquisitions

toour business activities,

which are expected to be

infrequent.

Return excess cash

to shareholders

Returns to shareholders

based on target leverage

range of 0.5x to 1.0x,

after considering future

cash generation and the

external environment.

1 2 3 4

Burberry Annual Report 2023/24

Strategic Report | Environmental and Social Progress

ENVIRONMENTAL AND SOCIAL MEASURES

^ This metric was subject to external independent limited assurance by PricewaterhouseCoopers LLP (PwC). For the results of that assurance, see PwC’s Independent Limited

Assurance Report and Burberry’s Responsibility Basis of Reporting FY 2023/24 on Burberryplc.com/impact/Resource-Hub.

Non-financial KPIs

We have developed non-financial measures to assess our performance against Burberry Beyond targets, with progress regularly

monitored by our Board.

For further details on environmental and social responsibility activities and FY 2023/24 progress against our Burberry Beyond

targets, see pages 35 to 62. The Group has considered the non-financial reporting requirements under sections 414CA and 414CB

ofthe Companies Act 2006 and has included details in theAnnual Report.

Objective Measure Performance

Product

Procure certified and

responsibly sourced

key raw materials

100% of key raw materials

in our products to be

certified or responsibly

sourced by FY 2029/30 (as

defined in our Sustainable

Raw Materials Portfolio)

• Percentage of key raw materials

inour products certified or

responsibly sourced (as defined

inour Sustainable Raw Materials

Portfolio) in FY 2023/24

• 55%^ of key raw materials in our products were

certified or responsibly sourced (as defined in our

Sustainable Raw Materials Portfolio) in FY 2023/24

• Percentage of certified or

responsibly sourced cotton

• 56% of cotton certified or responsibly sourced

inFY 2023/24

• Percentage of certified or

responsibly sourced synthetics

• 53% of synthetics certified or responsibly sourced

in FY 2023/24

• Percentage of certified or

responsibly sourced viscose

• 100% of viscose certified or responsibly sourced

in FY 2023/24

• Percentage of certified or

responsibly sourced wool

• 27% of wool certified or responsibly sourced

inFY2023/24

• Percentage of leather from

certified tanneries

• 100% of leather from certified tanneries in

FY2023/24, an increase from 96% in FY 2022/23

• Percentage of certified or

responsibly sourced feather

anddown

• 100% of feather and down certified or responsibly

sourced in FY 2023/24

Embed circular

businessmodels

Continue to evolve

aftercare offer and

trialnew circular

businessmodels

• Progress against aftercare offer • In FY 2023/24, we increased the number of

product categories eligible for our aftercare

services, including refresh treatments for

cashmere jumpers and shoe repairs

• 383 stores across 33 countries and territories

offer one or more aftercare services, compared

toover 300 stores in 33 countries and territories

inFY 2022/23

Key Performance Indicators (KPIs) help management to measure progress against our strategy.

Burberry Annual Report 2023/24

Objective Measure Performance

Product

Eliminate plastic

packaging

Eliminate plastic from

ourconsumer packaging

byFY2025/26

• Progress against consumer

packaging target

• In FY 2023/24, we made good progress against

our target by introducing new plastic-free

alternatives for our consumer packaging. Our pared

back offering consists of a reusable, 100% recycled

cotton shopper bag for larger purchases. In store,

smaller items are packaged in a Forest Stewardship

Council (FSC

) certified retail bag, whereas an

FSC

certified paper pouch is used topackage

online purchases

• 100% of consumer paper-based packaging

procured in FY 2023/24 was FSC

certified

Eliminate unnecessary

plastics used in

operational packaging and

maximise recycled content

(with at least 50% of

plastic to be made from

fully recycled content)

byFY2029/30

• Progress against operational

packaging target

• 53% of operational plastic packaging was made

from fully recycled content (a decrease of 8%

compared to FY 2022/23 due to a variation

inweight of packaging)

• We continued to work on eliminating unnecessary

plastics in operational packaging. For example,

inFY 2023/24, we replaced plastic void fill with

arecycled paper alternative across the majority

ofdistribution hub sites. We also replaced plastic

packaging tape with recycled paper sealing tape

intwo of our key distribution centres

Planet

Reach net zero

greenhouse gas (GHG)

emissions across

ourvalue chain by

FY2039/40

Across our own operations,

we commit to reducing

absolute scope 1 and 2

GHG emissions by 95%

byFY 2026/27 from a

FY2016/17 base year,

andto maintain this year

on year from FY 2026/27

through to FY 2039/40

• % reduction of scope 1 and scope 2

(market-based) emissions, relative

to FY 2016/17 base year

• In FY 2023/24, we maintained our performance

from the previous financial year, with a 93%

reduction in scope 1 and scope 2 (market-based)

emissions from a FY 2016/17 base year

• 100% of the electricity we consumed matched with

an equivalent amount of renewable generation

sourced from renewable tariffs, Energy Attribute

Certificates, or generated through on-site

renewables

• In FY 2023/24, our total energy consumption

decreased by 36% from a FY 2016/17 baseline and

by 3% from FY 2022/23

Across our extended

supply chain, we aim for

a46% reduction in scope

3GHG emissions by

FY2029/30 and a 90%

reduction in scope 3 GHG

emissions by FY 2039/40

(from FY 2018/19)

• % reduction of scope 3 emissions,

relative to FY 2018/19 base year

• 45.9%^ reduction in scope 3 emissions from

aFY2018/19 base year, and a 0.8% reduction

fromFY 2022/23

• Our FY 2022/23 total scope 3 emissions has been

restated due to a prior year error, as described

onpage 44, in line with our restatement policy

detailed in our Responsibility Basis of Reporting

FY2023/24 on Burberryplc.com. As a result of the

restatement, our FY 2022/23 scope 3 emissions

reduction is 45.5% from our FY 2018/19 base year.

A full category breakdown of our scope 3

emissions, including the restated figures for

FY2022/23, can be found in our Responsibility

Data Appendix 2023/24 on Burberryplc.com

^ This metric was subject to external independent limited assurance by PricewaterhouseCoopers LLP (PwC). For the results of that assurance, see PwC’s Independent Limited

Assurance Report and Burberry’s Responsibility Basis of Reporting FY 2023/24 on Burberryplc.com/impact/Resource-Hub.

1. In order to calculate the percentage of FSC

certified paper-based packaging, we have relied on the accuracy of the information supplied to us by our nominated packaging

suppliers regarding the value of certified paper packaging sold to Burberry.

Burberry Annual Report 2023/24

Objective Measure Performance

Planet

Embed sustainable

manufacturing

processes across our

supply chain

Extend our sustainable

manufacturing initiatives,

covering energy, water and

waste, both within our own

manufacturing and across

our supplychain

• Percentage of products delivered

by key supply chain partners

assessed against the ZDHC

Supplier to Zero (S2Z) programme

requirements

• 89% of products delivered by key supply chain

partners

assessed against the ZDHC S2Z

programme requirements in FY 2023/24

• Percentage of products delivered

by key supply chain partners

assessed against our water

conservation framework

• 83% of products delivered by key supply

chainpartners

assessed against our water

conservationframework

• Volume of raw material donations • Over 360,000 metres of fabric donated to avariety

of global non-profit organisations inFY2023/24

Protect nature

Contribute to sustainable

management of natural

forests and support zero

deforestation across our

products and supply chain

by FY2025/26

• Percentage of Canopy ‘Green Shirt’

rated viscose

• 100% of our viscose is Canopy ‘Green Shirt’ rated

in FY 2023/24

• Percentage of our leather from

certified tanneries

• Percentage of paper-based packaging

procured that is FSC

certified

• 100% of our leather was procured from certified

tanneries in FY 2023/24

• 96% of all paper-based packaging procured

inFY2023/24 was FSC

certified

People

Support inclusion

Achieve a 95% completion

rate globally for episodes

1and 2 of our online

Diversity, Equity and

Inclusion learning journey

• Percentage of colleagues who have

completed episodes 1 and 2 of the

online training

• 89% of colleagues have completed episode 1 and

90% of colleagues have completed episode 2

Increase representation

Ensure shortlists across all

recruitment campaigns are

gender balanced

• Percentage of female candidates

shortlisted

• In FY 2023/24, shortlists across all recruitment

campaigns consisted of 57% female, 41% male

and2% ‘other’ candidates

Aim to increase hiring

representation to 25%

ethnic minority candidates

in the UK

• Percentage of ethnic minority

candidates in the UK

• In FY 2023/24, hiring representation in the UK

consisted of 31% ethnic minority candidates

Aim to increase hiring

representation to 25%

Black/African-American

candidates in the USA

• Percentage of Black/African-

American candidates in the USA

• In FY 2023/24, hiring representation in the USA

consisted of 10% Black/African-American

candidates

Cultivate engagement

Create a workplace where

all our colleagues are

engaged with our brand,

purpose and values to

drive positive business

outcomes

• Colleague engagement scoreas

measured by our Glint survey

• Colleague engagement score of 74 points

Ensure our policies,

processes, practices and

resourcespromote equal

gender representation in

ourleadership population

• Number of women globally in

Director and above roles, divided

by the total number of Director and

above roles

• Women account for 57% of the leadership

population

Strategic Report | Environmental and Social Progress

1. Key supply chain partners refers to our direct supply chain partners, including finished goods vendors and raw material suppliers.

2. In order to calculate the percentage of FSC

certified paper-based packaging, we have relied on the accuracy of the information supplied to us by our nominated packaging

suppliers regarding the value of certified paper packaging sold to Burberry.

3. These values are based on candidates who chose to voluntarily disclose.

4. Employee engagement score as measured by Glint. Employee Engagement survey undertaken in September 2023. Engagement index based on completed survey responses only.

Burberry Annual Report 2023/24

Objective Measure Performance

People in our supply chain

Advance ethical

trading in our

supplychain

Continue to ensure our

responsible sourcing

standards and audit

requirements are upheld

by partners across our

supply chain (this applies

to finished goods

vendorsand key raw

materialsuppliers)

• Number of onsite social

compliance audits carried out in

the year

• 495^ onsite social compliance audits carried out

inFY 2023/24

• Number of desktop social

compliance assessments carried

out in the year

• 100^ desktop social compliance assessments

carried out in FY 2023/24

• Percentage of finished goods supply

chain partners undergoing a social

compliance audit or remaining

inscope from previous audit

• 71% of our finished goods supply chain partners

have had a social compliance audit or remained

inscope from previous audit

• Number of finished goods vendors

participating in the Vendor

Ownership Programme (VOP)

• 24 finished goods vendors participating in the

VOPas of FY 2023/24, an increase from 22 in

FY2022/23

• Number of workers reached

through the VOP

• Over 20,500 workers reached through the VOP,

a25% increase from FY 2022/23

Extend wellbeing

across our

supplychain

Extend our Supply Chain

Engagement Programmes

to further advance

wellbeing, livelihoods,

inclusivity and worker

voice across our

supplychain

• Number of finished goods

suppliers participating in our

Wellbeing Programme

• Number of finished goods supply

chain workers covered by the

Wellbeing Programme

• Nine finished goods suppliers participated in the

Wellbeing Programme

• 11,650 workers in the finished goods supply chain

covered by the Wellbeing Programme, an increase

from over 5,000 in FY 2022/23

• Number of calls to Burberry-

sponsored hotlines in the lastyear

• Number of workers covered

byhotlines

• 473 calls made to Burberry-sponsored worker

hotlines, compared to 502 in FY 2022/23

• Approximately 33,350 workers covered by

Burberry-sponsored hotlines, a 22% increase from

FY 2022/23

Communities

Inspire young people

to create better

futures

Positively impact 500,000

people between FY

2022/23 and FY 2025/26,

particularly young people

hailing from underserved

communities

• Number of people positively

impacted through community

programmes supported by Burberry

Group plc and The Burberry

Foundation in FY 2023/24

• Number of people positively

impacted cumulatively through

community programmes supported

by Burberry Group plc and The

Burberry Foundation since FY

2022/23

• 219,377 people positively impacted through

community programmes supported by Burberry

Group plc and The Burberry Foundation in FY

2023/24

• 380,162 people positively impacted cumulatively

through community programmes supported by

Burberry Group plc and The Burberry Foundation

since FY 2022/23

Increase volunteering

opportunities

forcolleagues

25% of Burberry

colleagues actively

engaged in volunteering

and fundraising activities

by FY 2025/26

• Percentage of colleagues engaged

in volunteering and fundraising

activities

• 8%

of colleagues engaged in volunteering and

fundraising activities in FY 2023/24

• Number of volunteering and

fundraising projects supported by

Burberry colleagues

• 139 volunteering and fundraising projects were

supported by Burberry colleagues in FY 2023/24

• Number of charities supported

through volunteering, match

funding and in-kind donations

• 92 charities were supported through volunteering,

match funding and in-kind donations

^ This metric was subject to external independent limited assurance by PricewaterhouseCoopers LLP (PwC). For the results of that assurance, see PwC’s Independent Limited

Assurance Report and Burberry’s Responsibility Basis of Reporting FY 2023/24 on Burberryplc.com/impact/Resource-Hub.

1. Figure excludes colleague headcount where there are data restrictions on the Spark volunteering and fundraising platform.

Burberry Annual Report 2023/24

Strategic Report | Environmental and Social Responsibility

A MORE SUSTAINABLE FUTURE

FOR LUXURY AND BEYOND

Burberry Annual Report 2023/24

Burberry is a global business operating in a variety of

environments and contexts. As an open and caring company,

weare committed to behaving responsibly towards our planet,

our people and the communities we impact, and we continue to

embed sustainable practices across our Company footprint.

Our Burberry Beyond strategy, with its Product, Planet, People

and Communities pillars, outlines the steps we are taking to

achieve our goals. We continue to make strong progress against

our 12 targets (see table below) and have been working to embed

and operationalise our strategy by collaborating with teams

across the business and our supply chain.

To ensure we continue to prioritise and act on our most

materialEnvironmental, Social and Governance (ESG) topics,

we will regularly conduct double materiality assessments in

linewith upcoming regulations, such as the European Union’s

Corporate Sustainability Reporting Directive (CSRD). Insights

from this assessment will act as our guiding principles for

complying withregulation requirements alongside any future

strategydevelopment.

We are in the process of completing our first double materiality

assessment and its preliminary findings have been used to

guide our disclosures for FY 2023/24.

Our Burberry Beyond strategy is supported by four pillars which encompass our key areas of focus.

Wehaveset12targets that allow us to track progress as we work towards creating lasting positive change.

Product Planet People Communities

Responsible

craftsmanship

1. Procure certified and

responsibly sourced

key raw materials

2. Embed circular

business models

3. Eliminate plastic

packaging

Climate Positive

4. Reach net zero

greenhouse gas

emissions across

ourvalue chain by

FY2039/40

5. Embed sustainable

manufacturing

processes across our

supply chain

6. Protect nature

Champion Diversity,

Equity and Inclusion

and people in our

supply chain

7. Support inclusion

8. Increase

representation

9. Advance ethical

trading in our supply

chain

10. Extend wellbeing

across our supply

chain

Positively impact

young people

11. Inspire young people

to create better

futures

12. Increase volunteering

opportunities for

colleagues

Read more from page 37 Read more from page 41 Read more from page 48 Read more from page 58

OUR BURBERRY BEYOND STRATEGY

As a brand with a deep connection to the outdoors, we strive to act responsibly with respect to

theenvironment, the communities in which we operate and those employed within our business

andwidersupplychain.

Burberry Annual Report 2023/24

Governance

Embedding Environmental and Social Responsibility into our

governance structures supports the delivery of our strategy

andour commitments.

The Board is responsible for ensuring our approach to

environmental and social matters is integrated into and

implemented across the business. The Board delegates regular

oversight of environmental matters to relevant Committees

responsible for governing the Group’s strategy on environmental

and social matters, including strategy and disclosures (as

outlined below).

Our Sustainability Committee, chaired by our CEO, is

responsible for the Product and Planet pillars of our Burberry

Beyond strategy. Together, these pillars and their targets

makeup our Group’s environmental agenda. The Committee

met nine times in FY 2023/24 and reported to the Board twice

on progress towards our environmental targets. Key actions

taken by the Committee in FY 2023/24 include approving

ourReBurberry consumer initiative and reviewing Burberry’s

preparations for complying with forthcoming ESG-related

regulations.

The Ethics Committee oversees the governance of our People

pillar, including the governance of human rights risks and due

diligence in our supply chain. Where risks are identified, they

are reported by management to the Ethics Committee, which

directly reports to the Audit Committee. The Ethics Committee

also has oversight of our Communities pillar as it reviews

theCompany’s charitable donations twice a year.

This governance structure ensures the implementation of all

four Burberry Beyond pillars across the business. The Board

receives regular updates and key information relating to

environmental and social matters.

Our full governance framework is outlined in the Corporate

Governance Statement on page 107.

Managing Environmental and Social

Responsibility

The CEO, who has accountability for Environmental and Social

Responsibility performance at executive level, delegates

managerial oversight of environmental and social responsibility

matters to our Corporate Responsibility team. This team, led

bythe Vice President of Corporate Responsibility, comprises

over 40 experts globally, with expertise ranging from carbon

accounting through to raw material sourcing and ethical trading.

The Corporate Responsibility team acts as a centre of excellence,

guiding the operationalisation of our strategy by collaborating

with teams across the business, including Sustainable Finance,

Sustainable IT, Legal, and Human Resources. We also have

Sustainable Manufacturing and Responsible Sourcing teams

embedded within our Supply Chain function ensuring the

delivery of our Burberry Beyond targets across our value chain.

Colleague engagement

We believe that all colleagues have a role to play in delivering

our Burberry Beyond strategy. We seek to inspire, educate and

equip our people with the tools to do so through training, events,

strategic communications and engagement opportunities.

Strategic Report | Environmental and Social Responsibility

In FY 2023/24, we grew our Sustainability Professionals

Network to over 350 members, representing multiple areas

ofthe business, including IT, Finance, Marketing and Internal

Manufacturing. The network, which is open to all Burberry

colleagues globally, is an active and engaged community

withmembers who support each other in decision-making,

information sharing and championing best practice. Members

have access to insights, events and webinars on topics

including Burberry Beyond updates, industry trends, best

practice and upcoming regulations.

This year, the Corporate Responsibility team conducted training

on a number of sustainability topics for teams across the business

(see Product section, pages 37 to 40, for further details). We will

continue to expand our sustainability training, with a particular

focus on developing the relevant skills, knowledge and

competencies required for colleagues to contribute to the

delivery of our strategy.

Reward

The remuneration of the Executive Directors is partly linked

toour progress in building a more sustainable future, including

progress towards the Group’s longer-term climate goals, via the

annual bonus plan and a sustainability underpin in the Burberry

SharePlan (BSP).

In FY 2023/24, 25% of the annual bonus for Executive Directors

was once again linked to performance against strategic objectives

linked to our strategy and brand as well as our environmental

and social targets. There will once again be a sustainability

underpin in the 2024 BSP award for the Executive Directors.

More details of this are set out in the Directors’ Remuneration

Report on pages 125 to 142.

In FY 2023/24 we began linking a proportion of our annual

corporate bonus plan for the wider workforce to the achievement

of sustainability metrics in our Product and Planet pillars.

Thishas been well received by colleagues and demonstrates

the value we place on sustainability as part of our strategy.

Traceability

Traceability enables us to assess and manage the

environmental and social risks associated with raw material

sourcing, while acting as an enabler for meeting wider strategic

goals, such as product and supply chain decarbonisation in

support of our net zero transition. Additionally, traceability is

central to the Company’s compliance with existing and

incoming ESG regulations.

In FY 2022/23, we set ourselves a target to have full traceability

of key raw materials by FY 2029/30 delivered through our

traceability programme. Using a third-party traceability tool,

wehave successfully implemented a traceability pilot for cotton,

wool and synthetics with our key suppliers, allowing us to track

these fibres back to the country of origin. We continue to scale

this programme at pace, with the ambition of reaching 80%

traceability of cotton, synthetics and wool by FY 2025/26,

andwill include additional materials in line with our FY 2029/30

raw material targets.

EMBEDDING BURBERRY BEYOND

Burberry Annual Report 2023/24

Introduction

Through textile innovation, Thomas Burberry elevated outerwear

performance and enhanced its ability to protect explorers from

the elements. Today, we are challenging ourselves to again

harness creativity to play our part in protecting our planet.

Inline with our Company’s strategy, we are incorporating

certified and responsibly sourced key raw materials into our

products, embedding circular business models into our ways

ofworking and eliminating plastic from our packaging, while

atthe same time reducing our use of resources.

Policies

Our Product pillar is underpinned by our Responsible Raw

Materials Sourcing Policy, which outlines our requirements for

value chain partners and colleagues, as well as our commitments

to responsible raw materials sourcing. The policy (available

onBurberryplc.com) also outlines our requirements with respect

to packaging, and animal welfare and testing.

Our Beauty licensee, Coty, publishes its own Against Animal

Testing Policy & Programme, which is available on Coty.com.

Approach

As part of our Product strategy, environmental considerations

are factored into the decisions we take with respect to the

design and manufacture of our products.

In FY 2023/24, we introduced the Sustainable Raw Materials

Portfolio, which details the certification and responsible

sourcing criteria accepted for each raw material we procure.

The document is regularly reviewed to ensure the best available

sourcing criteria are included and considered. We also set

targets for each business unit to track progress against use

ofthe guidelines, including setting performance objectives for

relevant teams and individuals. The Sustainable Raw Materials

Portfolio is already embedded within merchandising plans and

design briefs, resulting in all ready-to-wear clothing in our

Burberry Classics collection being made with a main material

containing at least 70% organic or 50% recycled content.

We also use consumer insights and our annual Brand Health

Tracker to inform this agenda and deepen customer engagement.

PRODUCT

Burberry Annual Report 2023/24

Procure certified and responsibly

sourcedkey raw materials

Target: 100% of key raw materials in our products are to be

certified or responsibly sourced by FY 2029/30 (as defined

inour Sustainable Raw Materials Portfolio)

In FY 2022/23, we set a target for all key raw materials in our

products to be certified and traceable by FY 2029/30. We have

since updated our target strategy to take a portfolio approach

to raw materials used in our products, recognising the need

formultiple raw material sourcing standards. Our Sustainable

Raw Materials Portfolio sets out the accepted certification and

responsible sourcing criteria across our raw materials, which

allow us to track our progress in this area. Our traceability

target to FY 2029/30 remains in place as a key enabler of our

Burberry Beyond strategy.

Progress

In FY 2023/24, 55%^ of key raw materials in our products were

certified or responsibly sourced (as defined in our Sustainable

Raw Materials Portfolio).

This financial year, six key raw materials (as listed below)

wereincluded in the scope of our target. These represent over

90% of the total volume (in weight) of main materials within

ourproducts.

Strategic Report | Environmental and Social Responsibility

recycled synthetics were strong driving forces of this year’s

performance. This is partly due to the launch of our Burberry

Classics collection, a core commercial range, where all

ready-to-wear clothing had a main material containing

responsibly sourced materials (at least 70% organic or 50%

recycled content). In addition, 100% of leather in FY 2023/24

was sourced from certified tanneries driven by strong

engagement with our sourcing teams and suppliers.

Furthermore, to support the delivery of our raw materials

targets, we delivered training to over 300 colleagues involved

inkey stages of the product development and raw material

sourcing processes. We also have a team leading the

development and integration of innovative materials. We are

working with an Italian supplier and third-party technology

supplier to develop and trial the use of hydroponic cotton.

Thiscotton is grown through soil-less farming in a vertical

greenhouse, resulting in the same high-quality cotton but with

lower water usage.

Embed circular business models

Target: Continue to evolve our aftercare offer and trial new

circular business models

We are working to create a more sustainable fashion industry

and meet changing consumer expectations. Burberry products

are expertly crafted using materials of the highest quality,

sothey are designed to last. Through innovations in circular

business models, we aim to keep products and materials

inusefor longer.

Progress

Aftercare

Our increasingly popular aftercare services ensure our

customers can enjoy their purchases for longer. In FY 2023/24,

we expanded our refresh and repair services to include

reproofing for select rainwear garments using organic

biodegradable solutions, refresh treatments for cashmere

jumpers, and shoe repairs.

Repair and refresh

By the end of FY 2023/24, over 380 stores across 33 countries

and territories offered one or more of our aftercare services.

Approximately 43,000 products were repaired or refreshed using

these services during the year. Please see our Responsibility

Data Appendix 2023/24 on Burberryplc.com for abreakdown

ofthese services.

To support client engagement, we rolled out a dedicated

services training series to just over 2,200 Retail Client Advisors,

so they can inform customers about our work in-store and via

our various customer service channels.

^ This metric was subject to external independent limited assurance by PricewaterhouseCoopers LLP (PwC). For the results of that assurance, see PwC’s Independent Limited

Assurance Report and Burberry’s Responsibility Basis of Reporting FY 2023/24 on Burberryplc.com/impact/Resource-Hub.

% of certified or responsibly sourced key raw materials FY 2023/24

Cotton 56%

Synthetics (nylon, polyester and TPU) 53%

Viscose 100%

Wool 27%

Leather 100%

Feather anddown 100%

Please refer to our Responsibility Data Appendix 2023/24 on

Burberryplc.com for detailed data and calculation methodology.

During FY 2023/24, we updated our calculation methodology

toalign with external reporting requirements and best practice

(see our Responsibility Basis of Reporting FY 2023/24 on

Burberryplc.com for details). We have made progress for all

keyraw materials, or maintained 100% certification, excluding

wool where we updated our methodology for calculating our

performance against target. Our Corporate Responsibility team

drove progress against our target by partnering with internal

teams and working with supply chain partners to champion

theuse of responsibly sourced materials. Organic cotton and

Burberry Annual Report 2023/24

Rental

This year, we continued exploring alternative ways for customers

to experience our products, including through rental partnerships

and adapted product offerings.

We continued our partnership with My Wardrobe HQ in the

UK,through which members can rent Burberry outerwear,

ready-to-wear, bags and accessories. Our most rented items

include dresses and bags, which are typically hired for a

four-day period. Our trial with Cocoon handbag subscription

service, which began in February 2023, is ongoing.

Resale

In FY 2023/24, we announced a partnership with global

luxuryresale platform Vestiaire Collective in the UK and USA.

Customers can trade in Burberry women’s outerwear and

handbags on the Burberry x Vestiaire Collective platform in

exchange for a Burberry gift card, which can be used in-store

oronline. All pre-loved Burberry pieces are available to

purchase globally through Vestiaire Collective.

Remake

We launched our first product upcycle programme during

FY2023/24. Using the cashmere upcycle service, customers in

the UK can have visible signs of wear and tear on their Burberry

cashmere scarf repaired with custom embroidery, appliqués

and personalised touches. This service helps extend the life

ofthe product while at the same time giving it a bespoke finish.

Burberry Annual Report 2023/24

Eliminate plastic packaging

Target: Eliminate plastic from our consumer packaging

byFY2025/26

Target: Eliminate unnecessary plastics used in operational

packaging and maximise recycled content (with at least 50%

of plastic to be made from fully recycled content) by FY 2029/30

Managing our use of plastic is key to reducing the environmental

impacts associated with our products and operations.

Progress

In FY 2023/24, we made good progress against our target to

eliminate plastic from our consumer packaging by introducing

new plastic-free alternatives.

To minimise and reduce waste, we now take a minimalist

approach to our consumer packaging. Our pared-back offering

comprises a reusable 100% recycled cotton shopper bag for

larger purchases and paper pouches or retail bags for smaller

items. All of our consumer paper-based packaging is widely

recyclable and (FSC

)

certified, reflecting our commitment to

support zero deforestation and sustainable forest management.

We also removed all hardware such as zips and snaps fromour

new plastic-free garment covers to facilitate recyclability, and

limited the types of purchases packaged with them to rainwear

and tailoring. Garment covers and dust bags are made with

60%recycled cotton.

1. In order to calculate the percentage of FSC

certified paper-based packaging, we have relied on the accuracy of the information supplied to us by our nominated packaging

suppliers regarding the value of certified paper packaging sold to Burberry.

Strategic Report | Environmental and Social Responsibility

We continued to work on eliminating unnecessary plastics

inoperational packaging by replacing plastic void fill with

arecycled paper alternative across the majority of distribution

hub sites. We also replaced plastic packaging tape with recycled

paper sealing tape in two of our key distribution centres.

Testingis ongoing in all other sites. Finally, we removed plastic

polybags used for shoes and now exclusively use dustbags

comprised of 60% recycled cotton. In FY 2023/24, 53% of

operational plastic packaging was made from fully recycled

content (compared to 61% in FY 2022/23).

We also collaborated with industry experts and The Fashion Pact

to progress our FY 2029/30 target to eliminate unnecessary

plastic in our operational packaging.

“Our 2025 plastic elimination target for

customer packaging goes hand in hand with

elevating the luxury customer experience.

For example, we have replaced our plastic

hangers with reusable, lightweight FSC

certified wooden hangers.”

Niclas Ekerot

Vice President, Retail Excellence

Burberry Annual Report 2023/24

PLANET

Introduction

Burberry’s heritage is embedded in the natural world.

ThePlanetpillar of our Burberry Beyond strategy outlines

howwe manage our most significant environmental impacts

anddependencies to mitigate material risks and realise

opportunities while contributing to global efforts to tackle

climate change and nature loss.

Policies

Our Global Environmental Policy (available on Burberryplc.com)

sets out our commitment to environmental responsibility

andthe standards we uphold across our value chain. These

principles are mandatory and apply to all of our operations

andsupply chain partners’ activities. Supplier environmental

performance is monitored systematically (see ‘Embed

sustainable manufacturing’ section on pages 45 to 46).

Approach

Climate Positive is our approach to delivering our Planet

pillarcommitments. We are working to reach netzero GHG

emissionsby FY 2039/40, extend our sustainable manufacturing

programmes, and contribute to the sustainable management

ofnatural forests.

Our pillar objectives are delivered by the Corporate

Responsibility and Sustainable Manufacturing teams working

inclose collaboration with other internal teams and supply chain

partners to drive performance against our targets. Through

cooperation between key operational teams, including Supply

Chain, Merchandising, Sourcing and Strategy, we ensure

environmental management remains integral to day-to-day

business processes and decisions.

Burberry Annual Report 2023/24

Reach Net Zero by 2040

Target: Reach net zero greenhouse gas emissions across our

value chain by FY 2039/40

Reducing GHG emissions and managing climate-related risks

are material to the long-term success of our business. We are

dedicated to reducing our scope 1, 2 and 3 emissions and are

embedding this commitment into our organisational strategy

with the ultimate aim of becoming Net Zero by 2040. Our

emissions reduction targets are aligned to a 1.5°C pathway

andhave been validated by the Science-Based Targets initiative

(SBTi) against their Corporate Net-Zero Standard. We are

assessing whether we will be required to set separate SBTi

FLAG (Forest, Land and Agriculture) targets within our overall

Net Zero by 2040 commitment.

Our approach to decarbonisation is to maximise absolute

reductions through effective energy efficiency and carbon

reduction projects, before compensating for any residual

emissions through high-integrity and certified carbon credits

inline with the SBTi’s Corporate Net-Zero Standard. See the

Global GHG emissions table on page 43 for the number

ofcarbon credits we purchased in FY 2023/24. Our Burberry

Beyond Climate Positive 2040 report details our strategic

direction and plan to reduce GHG emissions across our

operations and supply chain.

Progress

We are committed to business-wide decarbonisation, and

during FY 2023/24, focused on building the internal capacity

and momentum required to develop and operationalise our

long-term transition plan.

Delivering our Net Zero by 2040 target will require short-,

medium- and long-term solutions driven by a broad range of

teams across the business. In FY 2023/24, we began conducting

cross-functional strategy “sprints” to identify feasible and

effective solutions to our biggest blockers to achieving net zero

emissions by 2040. Using insights gathered from our scope 3

emissions data (see our Responsibility Data Appendix 2023/24

on Burberryplc.com for the emissions category breakdown),

weidentified impact areas and actions to address. These areas

cover each stage of our product lifecycle, from selection of raw

materials to circular initiatives.

Scope 1 and 2

Target: Across our own operations, we commit to reducing

absolute scope 1 and 2 GHG emissions by 95% by FY 2026/27

from a FY 2016/17 base year, and to maintain this year on year

from FY 2026/27 through to FY 2039/40

In FY 2018/19, we set an SBTi-approved target to reduce our

absolute scope 1 and 2 emissions by 95% by FY 2022/23

compared to a FY 2016/17 baseline. We set this commitment

knowing that the target was ambitious but with the intention

thatit would help us drive change at pace. With new plans now

inplace, we have extended the deadline to FY 2026/27 and will

maintain the 95% reduction year-on-year to FY 2039/40.

Strategic Report | Environmental and Social Responsibility

Scope 1 and 2 GHG emissions

Progress

We reduced absolute scope 1 and 2 emissions from our own

operations by 93% from our FY 2016/17 baseline, maintaining

our FY 2022/23 reduction performance.

Key to our emissions reductions from FY 2016/17 has been

thecontinued use of renewable electricity throughout our

operations. In FY 2023/24, we maintained the progress made

inthe previous financial year, with 100% of the electricity we

consumed matched with an equivalent amount of renewable

generation sourced from renewable tariffs, Energy Attribute

Certificates, or generated through on-site renewables. We now

have solar panels installed at our headquarters in London and

our distribution sites in Italy and the USA. We have also begun

improvement works at our distribution site in Blyth, UK, where

we are installing solar panels, furthering on-site generation

inour own operations.

In conjunction with our use of renewable electricity, we are

focused on delivering emissions reductions through energy

efficiency. In FY 2023/24, our total energy consumption

decreased by 36% from a FY 2016/17 baseline and by 3% from

FY 2022/23. Over the past financial year, we carried out a series

of energy audits across our retail stores, offices, manufacturing

sites and distribution hubs in line with the Energy Efficiency

Directive (EED) and Energy Savings Opportunity Scheme

(ESOS) energy regulations in the UK and Europe. Throughthese

audits we identified more immediate opportunities to increase

energy efficiency, including maximising lighting efficiencies

through LED upgrades and improving the management of heating

and cooling systems using temperature boundaries. We also

identified more ambitious improvements, such as upgrading

heating systems and replacing single-glazed windows in stores

to reduce heat loss.

Delivery of our scope 1 and 2 emissions reduction target

continues to be supported by ensuring our buildings meet high

energy efficiency standards. In FY 2023/24, we obtained the

LEED Gold certification in 32 additional stores and the BREEAM

Excellent certification at one more store, our Bond Street

flagship, making a total of 105 certified stores since FY 2018/19.

Total scope 1 and 2 market-based emissions (tonnes CO

e).

^ This metric was subject to external independent limited assurance by

PricewaterhouseCoopers LLP (PwC). For the results of that assurance, see

PwC’sIndependent Limited Assurance Report and Burberry’s Responsibility

BasisofReporting FY 2023/24 on Burberryplc.com/impact/Resource-Hub.

FY 2023/24

1,667^

FY 2022/23

1,667

FY 2021/22

1,835

FY 2016/17 – Baseline

24,570

Burberry Annual Report 2023/24

Global GHG emissions

Current reporting year 2023/24 Reporting year 2022/23 Reporting year 2021/22

Global

UK and

offshore only Global

UK and

offshore only Global

UK and

offshore only

Total energy including: purchase of electricity,

the operation of any facility, combustion of fuel

for facilities and vehicles/kWh 54,735,836^ 15,402,415 56,262,614 15,518,973 72,548,109 18,517,153

Scope 1 – Combustion of fuel and operation

offacilities (Tonnes CO

e) 1,545^ 1,056 1,585 1,082 1,768 1,311

Scope 1 – Combustion of fuel from owned

orleased transport (Tonnes CO

e) 122 3 82 2 67 1

Scope 2 – Electricity purchased and used for

operations (location based) (Tonnes CO

e) 17,308^ 1,998 17,692 1,872 25,866 2,390

Scope 1 and 2 – Total emissions (location based)

(Tonnes CO

e) 18,975^ 3,057 19,359 2,956 27,701 3,702

Scope 2 – Electricity purchased and used for

operations (market based) (Tonnes CO

e) 0^ 0 0 0 0 0

Scope 1 and 2 – Total emissions (market based)

(Tonnes CO

e) 1,667^ 1,059 1,667 1,084 1,835 1,312

Total emissions offset by Verified Emissions

Reduction Certificates (Tonnes CO

e) 1,667 1,059 1,667 1,084 1,835 1,312

Scope 1 and 2 intensity (location-based)

(TonnesCO

e per £1,000,000 sales revenue) 6.4 N/A 6.3 N/A 9.8 N/A

% of energy and electricity consumption (kWh)

sourced from renewable sources (%) 84%^ 63% 84% 62% 86% 61%

Burberry applies an operational control approach to defining its organisational boundaries. Data is reported for sites where

itisconsidered that Burberry has the ability to influence energy management. Data is not reported for sites where Burberry has

aphysical presence but does not influence the energy management for those sites, such as a concession within a department store.

Overall, the emissions inventory reported equates to 97% of our net selling space square footage. Burberry uses the Greenhouse

Gas Protocol (using a location- and market-based approach to reporting scope 2 emissions) to estimate emissions and applies

conversion factors from UK BEIS, IEA and RE-DISS. All material sources of emissions are reported. Refrigerant gases were deemed

not material and are not reported. Market-based emissions globally and for the UK relating to purchased electricity within our

operations (scope 2) are stated as zero due to us procuring an amount of renewable electricity equivalent to 100% of our annual

consumption. GHG emissions data reported is based on the period from 1 April 2023 to 31 March 2024. The Company’s financial

accounting period is from 2 April 2023 to 30 March 2024. However, references to FY 2023/24 for the selected Responsibility

indicators included in the Environmental and Social Responsibility section of Burberry’s Annual Report 2023/24 refer to the period

1 April 2023 to 31 March 2024.

^ This metric was subject to external independent limited assurance by PricewaterhouseCoopers LLP (PwC). For the results of that assurance, see PwC’s Independent Limited

Assurance Report and Burberry’s Responsibility Basis of Reporting FY 2023/24 on Burberryplc.com/impact/Resource-Hub.

Burberry Annual Report 2023/24

Strategic Report | Environmental and Social Responsibility

^ This metric was subject to external independent limited assurance by PricewaterhouseCoopers LLP (PwC). For the results of that assurance, see PwC’s Independent Limited

Assurance Report and Burberry’s Responsibility Basis of Reporting FY 2023/24 on Burberryplc.com/impact/Resource-Hub.

Total scope 3 emissions (tonnes CO

e).

^ This metric was subject to external independent limited assurance by

PricewaterhouseCoopers LLP (PwC). For the results of that assurance, see

PwC’sIndependent Limited Assurance Report and Burberry’s Responsibility

BasisofReporting FY 2023/24 on Burberryplc.com/impact/Resource-Hub.

* FY 2022/23 total scope 3 emissions has been restated due to a prior year error

asdescribed on page 44. Please see our Responsibility Data Appendix 2023/24

(onBurberryplc.com) for a full category breakdown of our scope 3 emissions including

the FY 2022/23 restated figures. Additional details of our methodology are available

in our Responsibility Basis of Reporting FY 2023/24 on Burberryplc.com.

Scope 3

Target: Across our extended supply chain, we aim for a 46%

reduction in scope 3 GHG emissions by FY 2029/30 and

a90% reduction in scope 3 GHG emissions by FY 2039/40

(from FY 2018/19)

Progress

During FY 2022/23, we reassessed our methodology for

calculating scope 3 GHG emissions, specifically in regards to

estimations within Category 1 (Purchased Goods and Services).

As a result, we have revised our spend-based calculations for

sub-categories within Category 1, accounting for 0.3% of total

scope 3 emissions in FY 2023/24. This is considered a change

in methodology for the baseline year, and the correction of

anerror in FY 2021/22 and FY 2022/23 data. In line with our

restatement policy, as described in our Responsibility Basis

ofReporting FY 2023/24 on Burberryplc.com, we have restated

our FY 2022/23 scope 3 emissions in order to correct this error.

To ensure clarity and consistency in the comparison between

our year-on-year performance, we have applied this new

methodology to our FY 2023/24 calculations as detailed in our

Responsibility Basis of Reporting FY 2023/24 (available on

Burberryplc.com). OurFY 2018/19 baseline and FY 2021/22

remain unchanged due to being below our restatement

threshold. As a result of the restatement, our FY 2022/23 scope

3 emissions reduction is45.5% from our FY 2018/19 base year.

Our methodology for accounting and reporting GHG emissions

is aligned with the Greenhouse Gas Protocol Corporate Value

Chain (Scope 3) Accounting and Reporting Standard. A full

category breakdown of our scope 3 emissions, including

therestated figures for FY 2022/23, can be found in our

Responsibility Data Appendix 2023/24 on Burberryplc.com.

Overall, in FY 2023/24, our scope 3 GHG emissions decreased

by 0.8% from FY 2022/23 and by 45.9%^ from our FY 2018/19

base year, against which we are measured for our 2030 and

2040 science-based targets.

Our scope 3 emissions performance in largely determined by

both the volume of products we produce and our product mix.

However, we continue to make targeted interventions to ensure

we are working to reduce our carbon emissions over the coming

years in line with our 2030 and net zero targets.

With the vast majority of our scope 3 GHG emissions arising

from our extended supply chain, we are focusing on five key

impact areas to drive action and progress: 1) Raw Materials,

2)Circularity and Reducing Product-related Waste, 3) Supply

Chain Decarbonisation, 4) Sustainable Transportation and 5)

Operational Decarbonisation. These impact areas are also the

focus of our cross-functional transition planning initiated this

financial year. Further details about initiatives under each of

these areas are provided in the Decarbonising our Value Chain

section of the Burberry Beyond Climate Positive 2040 report

onBurberryplc.com.

We have made additional progress in driving decarbonisation

across our purchased goods and services by increasing the

uptake of certified and responsibly sourced raw materials and

further investment into innovative materials.

As cashmere contributes significantly towards our raw material

emissions, we are part of a cross-industry Life Cycle Assessment

coordinated by Textile Exchange with the aim of improving

ourunderstanding of its environmental impact. This builds on

actions we are already taking to reduce emissions associated

with cashmere sourcing and production, including phasing out

the use of virgin cashmere in specific product categories.

We are also taking steps to reduce the amount of excess

materials generated and increase material donations to external

partners to both extend the life of materials already procured

and avoid further emissions associated with excess materials

(see page 46 for detail on textile and leather donations).

In other key impact areas, we are working to drive reductions

intransportation and logistics emissions. This includes reducing

the proportion of finished goods transported by air between

ourvendors to our hubs year on year, focusing instead on less

carbon-intensive modes of transport such as sea- and road-freight.

We are working with supply chain partners to promote energy

efficiency and transition to renewable electricity as part of

ouractions to reduce emissions. Specifically, we track energy

performance across our finished goods production sites.

InFY2023/24, 70% of our finished goods vendors globally

usedelectricity from renewable sources.

Scope 3 GHG emissions

FY 2023/24

409,994^

FY 2022/23

413,340*

FY 2021/22

513,243

FY 2018/19 – Baseline

758,542

Burberry Annual Report 2023/24

Embed sustainable manufacturing

Target: Continue to extend our sustainable manufacturing

initiatives, covering sustainable chemical management, water

and waste, both within our own manufacturing and across

oursupply chain

Our work with our value chain goes beyond reducing GHG

emissions to encompassing the sustainable management

ofresources and production processes. Our commitment to

implementing our sustainable manufacturing programme within

our supply chain ensures we are lowering both our dependencies

and our impact across key environmental topics. Our dedicated

Sustainable Manufacturing team is responsible for implementing

and monitoring this programme.

Progress

Chemicals

Our approach to sustainable chemical management is to drive

systemic change and achieve zero discharge of hazardous

chemicals across the industry. Our Chemical Management

Programme ensures safer products, reduced exposure for

communities in and adjacent to our supply chain, and cleaner

water and air emissions into the environment.

Our Burberry Manufacturing Restricted Substances List (MRSL)

prohibits all Perfluoroalkyl and Polyfluoroalkyl Substances

(PFAS) in addition to the Zero Discharge of Hazardous

Chemicals (ZDHC) MRSL. Our Burberry Product Restricted

Substances List (PRSL) ensures the safety of our products

through monitoring and robust testing standards.

We are implementing the ZDHC Supplier to Zero (S2Z)

programme across our value chain to ensure that the best

practices in sustainable chemical management are adopted.

InFY 2023/24, 89% of products were delivered by key supply

chain partners

assessed against the ZDHC S2Z programme

requirements. We work to continuously improve the quality of

our supply chain effluents and therefore require wet processors

to perform wastewater testing in line with the ZDHC Wastewater

Guidelines. The results are published annually on Burberryplc.com.

Over the last 10 years, along with our luxury peers, third-party

suppliers and external chemical experts, we have helped to

shape the direction of the industry on the chemical management

roadmap. Since 2014, Burberry has been an active member

ofthe ZDHC and, in 2023, our chemical management

implementation was recognised as Aspirational for the third

consecutive year, the highest attainable level in ZDHC’s Brands

to Zero Leader Programme.

For more details and data on our Chemical Management

Programme, please refer to our Responsibility Data Appendix

2023/24 on Burberryplc.com.

Water

We are committed to preserving water for future generations.

Our Water Conservation Programme focuses on increasing

resource efficiency, reducing our water impacts and increasing

water resilience. To achieve this, we work closely with our key

supply chain partners

, cultivating a culture of openness and

transparency to address our water impacts at the manufacturing

stages of our value chain.

As part of this programme, we have developed a water resilience

assessment to help us identify potential hotspots, defined as

sites where water management levels are disproportionate to

their levels of water intensity and risk. The assessment acts as

aroadmap to improve water management at our partners’ sites,

by promoting a better understanding of their water demand,

driving water efficiency and water recycling, and encouraging

greater disclosure.

In FY 2023/24, 83% of products were delivered by key supply

chain partners

assessed against our water conservation

framework. We have improved our resilience profile annually

through partner engagement, capacity building and direct

support. The percentage of products delivered by partners with

low levels of water resilience (Red/Hotspot) decreased from

11% in FY 2022/23 to 4.25%, while the percentage of products

delivered by partners with good levels of water resilience

(Green/Excellent) increased from 36.7% to 47.9%. For a full

breakdown of our assessment and results, please refer to our

Responsibility Data Appendix 2023/24 on Burberryplc.com.

Following our assessment, we work with potential hotspot sites

to co-develop strategies to improve their water resilience.

Weaim to have zero hotspots by 2030.

Additionally, we are working to understand our products’

waterfootprint to inform innovation efforts in water efficient

technologies and materials. Beyond our manufacturing value

chain, water is a key resource for raw material production.

Weare taking steps to mitigate our impacts and risks at this

stage of the value chain. For example, Burberry’s raw material

certification targets aim to embed best practice environmental

management, including minimising water impacts (see page 38

for more detail on these targets).

We report on our approach to managing water-related climate

risks, such as water stress and flooding, in our Task Force on

Climate-related Financial Disclosures (TCFD) on pages 66to79.

We are improving the reach of our assessment framework, and

in turn our supply chain profile, and we recognise the need for

greater collaboration to drive systemic change. See page 62 for

details of the partnerships we have established to deliver onthis.

83%

Key supply chain partners assessed in FY 2023/24

11%

4.75%

Supply chain partners with low levels of water resilience

Supply chain partners with good levels of water resilience

36.7%

48%

FY 2023/24 FY 2022/23

1. Key supply chain partners refers to our direct supply chain partners including finished goods vendors and raw material suppliers.

Note: Figures are based on % product units delivered by key supply chain partners

inthe relevant financial year.

Burberry Annual Report 2023/24

Strategic Report | Environmental and Social Responsibility

1. In order to calculate the percentage of FSC

certified paper-based packaging, we have relied on the accuracy of the information supplied to us by our nominated packaging

suppliers regarding the value of certified paper packaging sold to Burberry.

Working closely with our supply chain partners, we collaborate

to increase recycling and repurposing of textile and leather

offcuts through shared partners.

We continue to donate excess materials, including textile,

leather, yarns, trims and mannequins, to charities and design

schools globally. In FY 2023/34 we donated over 360,000 metres

of fabric to a variety of global non-profit organisations, including

the British Fashion Council, Leeds Beckett University, and

Progetto Quid.

Finished goods

We provide finished goods donations to schools, charities

andsocial enterprises. This includes our long-time partner and

UK based charity, Smart Works, which provides clothing and

coaching to help women secure employment. In FY 2023/24,

wedonated 2,650 items of business clothing to Smart Works

for clients to wear during jobinterviews. In the USA, we donated

over 2,000 units of clothing to Good360, an organisation

thatdistributes urgently needed goods to charities that need

themthe most.

Protect nature

Target: Contribute to sustainable management of natural

forests and support zero deforestation across our products

and supply chain by FY 2025/26

This year, we initiated the development of a nature strategy to

manage our most material nature-related impacts, dependencies,

risks and opportunities in our value chain and beyond. This will

build on our existing commitment to contribute to sustainable

management of natural forests and support zero deforestation,

and our alignment with the recommendations of the Taskforce

on Nature-related Financial Disclosures (TNFD).

Progress

Deforestation and sustainable forest management

In FY 2023/24, for the second straight year, 100% of our

procured viscose was ‘Green Shirt’ rated in Canopy’s Hot Button

Ranking. This ensures suppliers have been audited and assessed

as low risk of sourcing from Ancient and Endangered Forests,

and are ZDHC-compliant.

Regarding packaging, our retail bags and gift boxes are FSC

certified, guaranteeing that the paper used is made of responsibly

sourced wood fibre and does not come from endangered

forests. Additionally, we are enhancing our sustainable practices

by ramping up the sourcing of eco-friendly cardboard for both

consumer and operational packaging. In FY 2023/24, 96%

ofour paper-based packaging was FSC

certified

We are also committed to avoiding deforestation and forest

degradation driven by the sourcing of leather (please see our

Responsible Raw Materials Sourcing Policy on Burberryplc.com

for more details). In FY 2023/24, we sourced 100% of our

leather from certified tanneries (compared to 96% in FY 2022/23).

This increase in sourcing certified leather was driven by strong

engagement with our sourcing teams and suppliers.

Waste

We are committed to embedding circular principles and

reducing waste across our operations and direct supply chain.

Our waste hierarchy outlines our preferred approach to reducing

waste across our footprint, including at the design stage,

inthesupply chain and in merchandising. From most preferred

to least preferred, we endeavour to Rethink, Reduce, Reuse,

Recycle and Recover. Our preferred approach is to avoid waste

before it is created by designing and planning with circularity

and the inefficiencies that lead to waste creation in mind.

Where waste still occurs, we continue to expand existing routes

while developing new partnerships and solutions. We manage

our stock position closely by proactively allocating current stock

across channels and regions to meet demand.

To help our customers keep their Burberry products in use for

longer, we have been expanding our aftercare services and

embedding circular business models. More details regarding

our circularity programmes can be found on pages 38 to 39.

Operational waste

To minimise and reduce waste across our own operations in

FY2023/24, we diverted 100% of operational waste from landfill

with an average recycling rate of 74% in our own operations

(compared to 71% in FY 2022/23).

Non-stock waste

We have introduced Sustainability Principles to reduce the

overall impact of marketing activity, events, visual merchandising

and gifting. These Principles are mandatory for all external

partners and internal Marketing and Production teams. A key

component of the Sustainability Principles consists of detailed

guidance for extending the life of materials where possible,

asaligned to our waste hierarchy. For example, in collaboration

with UpCycle Labs, a UK-based recycling partner, we repurposed

our Bond Street flags from our London takeover in September

2023 into unique Thomas Burberry busts awarded to colleagues

recognised by our annual internal Icon Awards.

We prioritise re-use where possible, giving products and props

a second life. In FY 2023/24, we donated 20 metric tonnes

ofold props, retail furniture and visual merchandising to our

charity partner Vitruvium. This includes 43 rolls (approximately

13 metric tonnes) of carpet previously used in our FY 2023/24

shows and events. Following our most recent Burberry Winter

2024 show, we donated 193 custom fleece cushions to the

Royal Society for the Prevention of Cruelty to Animals (RSPCA)

London East, RSPCA Thanet and RSPCA Leybourne.

Donations

Textile and leather waste

We recognise the fashion industry’s shared challenge with

respect to the environmental impacts of excess fabric and

textile waste. Supply chain efficiency and management of

materials is a key area of focus. By putting in place systems to

optimise the procurement and utilisation of our materials and

finished goods, we can reduce their associated climate impacts.

Burberry Annual Report 2023/24

Partnerships with raw material producers

The Burberry Regeneration Fund supports regenerative farming

projects in our supply chain to promote biodiversity, improve

soil carbon and support livelihoods in local communities.

Inpartnership with PUR, a certified B Corp and provider

ofnature-based solutions, we work with wool producers

inAustralia to promote regenerative farming practices across

12farms. With support from PUR, the farmers are implementing

practices such as seeding new pasture grasses, setting aside

wildlife corridors, and installing new fencing and paddocks to

allow more rotational grazing.

In addition, we have partnered with a major cotton supplier to

trial sourcing cotton produced in Southern USA using organic

and regenerative practices. This cotton is certified by both the

Global Organic Textile Standard (GOTS) and Regenagri and

supports our mitigation of water- and biodiversity-related risks

by reducing water consumption, preserving soil health and

avoiding the use of harmful chemicals.

Protecting nature beyond our own value chain

In FY 2023/24, we took further action to support nature

protection and restoration beyond our own value chain.

Forexample, 2024 marks the second year of our three-year

ecological restoration and conservation programme in

partnership with the Hainan Provincial Bureau of International

Economic Development, the Educational Department of Hainan

Province, the Forestry Department of Hainan Province and

Hainan Reform and Development Research Foundation.

Inlinewith Mainland China’s national sustainability goals and

Burberry’s net zero agenda, this programme aims to restore

theecosystems in key areas across Hainan and preserve

theisland’s tropical forestry, mangrove ecosystems and

biodiversehabitats.

Burberry Annual Report 2023/24

PEOPLE

Introduction

People are at the heart of our business and operations and

ourdirect colleagues and those in our supply chain are critical

to our success. We work to create an inclusive culture and

environment where creative minds from different backgrounds

can collaborate and flourish.

We respect and uphold human rights wherever we operate and

we work to enhance the wellbeing of all workers in our supply

chain through dedicated initiatives. Read more from page 54.

Policies

Our people-focused policies and procedures are aligned to our

commitment to being an open, inclusive and caring employer,

and assist us in supporting our colleagues throughout their

career at Burberry.

Our Code of Conduct includes our key policies and processes

and sets the behaviours expected of our people and Burberry

business associates. It reiterates the principles of respect,

fairness and compliance inherent in our Company values,

andour intention as a business to comply with local laws

andregulations.

By championing inclusivity and diversity, we foster a workplace

culture where our people can thrive. Our Global Diversity, Equity

and Inclusion Policy includes clear guidelines and accountability

measures to ensure we attract and retain a diverse workforce.

For example, Burberry’s Global Parental Leave Policy offers all

eligibleemployees 18 weeks of parental leave at full pay and

theopportunity to work a 30-hour week at full pay for a further

four weeks on their return.

We review our Global Diversity, Equity and Inclusion Policy

annually and continue to work with external organisations to

ensure inclusive practices and procedures are upheld across

Burberry, where we exercise fairness and ensure that people

with disabilities are equally considered. We make reasonable

adjustments for people withdisabilities (including any

colleagues who have become disabled) throughout their

careerat Burberry and ensure our online materials, career site,

policies and processes are inclusive of people with both visible

and non-visible disabilities. For example, to support fair and

objective performance management, we provide training

andguidance for line managers that emphasises evaluating

colleagues based on skills, capability and demonstrated

performance. We also offer leaders and line managers

(including those involved in the recruitment process) training

covering unconscious bias awareness and mitigation strategies

to ensure all are candidates and colleagues assessed based

ontheir experience, merit and contributions.

Our operations are also governed by our Global Health and

Safety Policy, ensuring appropriate measures are in place to

provide safe and healthy environments for our people and those

visiting Burberry’s premises. We follow all applicable guidelines

and procedures relevant to our industry and locallaws.

We are committed to engaging with our people, customers

andsuppliers not only in accordance with legislation but also

ethically and with independence and integrity. Our Anti-Bribery

and Corruption Policy outlines the steps taken to prevent

bribery and corruption in connection with Burberry. Everyone

associated with Burberry is expected to conduct themselves

inaccordance with the highest ethical standards at all times.

Approach

Our approach to supporting our people and meeting

ourtargetsrequires collaboration between teams across

thebusiness. Weleverage the strengths and capabilities

ofdifferent departments and pool expertise and resources

toachieve ourtargets.

Our values underpin our Peoplestrategy. They serve as guiding

principles and help to maintain a positive, open and inclusive

culture while driving growth through high performance.

Our Diversity, Equity and Inclusion principles supplement our

values and are hardwired into how we operate as a business to

help us advance, understand and support our people globally.

Strategic Report | Environmental and Social Responsibility

Burberry Annual Report 2023/24

Evolving our culture with the values

thatunite us

We recognise and reward our people for what they do as well

ashow they demonstrate Burberry’s leadership behaviours.

These considerations shape merit and pay decisions, annual

bonus outcomes and awards under the Burberry Share Plan for

our senior leaders. A proportion of our colleague bonus is also

linked to the achievement of key targets in the Product and

Planet pillars of our Burberry Beyond strategy.

Elevating leadership capability

At Burberry, our leaders act as the guiding compass for our

people. Their actions and behaviours set the standard for

whatis expected and guide our organisation’s culture. During

FY2023/24, we focused on elevating leadership capabilities

and developing a more closely connected senior leadership

community. We introduced training for our Director and above

community. We also worked with an external partner to provide

our senior leadership community with sessions that identified

actions and behaviours that can elevate leadership qualities

andbolster engagement within teams.

Cultivating colleague engagement

Throughout FY 2023/24, we supported our people in building

behaviours and habits to maintain their engagement and

wellbeing. Alongside the continuation of our longstanding

summer and winter programmes, offering wellbeing days and

other benefits, we launched our first global B:Well Week,

featuring initiatives addressing mental, physical, social and

financial wellbeing.

Acknowledging the challenges presented by the macro-economic

environment, we launched a dedicated financial wellbeing

microsite in November as part of Talk Money Week. This platform

offers resources and guidance on various financial topics,

providing essential support for navigating economic complexities.

In FY 2023/24, we enhanced our Diversity, Equity and Inclusion

education programmes and introduced dedicated training

sessions on the topic of psychological safety. The sessions

explored how to create high-performing teams built on trust

anddiscussed barriers to driving a culture of inclusion, respect

andreflection.

Our global resolution framework supports our psychological

safety training. Launched in 2022, the initiative aims to foster

aculture of speaking up and ensuring early, consistent and

lasting resolution of employee concerns. Our global framework

has played a pivotal role in building trust and instilling a

people-centred, dialogue-driven approach to workplace

issues,and earned Burberry the Personnel Today HR Impact

Awardin2023.

This year, we introduced ‘Culture Hacks’

sessions,which brought teams together to boost

understanding ofour values. The immersive

sessions addressed how our Leadership Standards

guide our colleagues and empower them to work

in ways that align with our values while also

progressing our Company strategy.

Colleagues took part in a number of activities,

including outlining what our values mean to them

and demonstrating them through provided images.

Groups also developed two cartoon storyboards

depicting scenarios related to Burberry’s values.

In one storyline the characters adhered to Burberry’s

values and performed well,whereas inthe second,

they did not, which resulted in them encountering

performance-limiting obstacles.

Following the sessions, teams reported feeling

adeeper connection to and understanding

ofourvalues.

Culture Hacks

Burberry Annual Report 2023/24

Male: Total 3,106 (33%)

Female: Total 6,230 (67%)

1. See more details regarding our people data in our Responsibility Data Appendix 2023/24 available on Burberryplc.com.

2. Senior managers as defined in the Companies Act 2006 (Strategic Report and Directors’ Report) Regulations 2013.

Junior Managers

Total: 1,142

Female: 740

65%

Male: 402

35%

Senior Managers

Total: 452

Female: 258

57%

Male: 194

43%

Executive Committee

Total: 11

Female: 3

27%

Male: 8

73%

Leadership (Director and above)

Total: 331

Female: 190

57%

Male: 141

43%

Diversity, Equity and Inclusion pillars

Attracting and

retaining diverse talent

Fostering an open and

inclusive culture

Educating and raising

awareness

Implementing a global

approach

Diversity in our workforce

Understanding the diversity in our

workforce enables us to leverage the

strengths and experiences of our people

to deliver our business strategy.

In FY 2023/24, we launched a campaign

encouraging our colleagues to voluntarily

share their diversity information. This

data enables us to design policies and

initiatives to support a diverse, equitable

and inclusive workforce. For example,

wedeveloped a trans-inclusive language

guide to support our transgender and

non-binary colleagues, as well as those

connected to trans and non-binary

communities, to help facilitate

conversations on this topic.

All workforce

Total: 9,336

Empowering our people through Diversity, Equity and Inclusion

Our Diversity, Equity and Inclusion principles are woven into our global colleague journey, from fostering an open and inclusive

culture to investing in global education programmes, which encourage our people to be curious and challenge behaviours.

Strategic Report | Environmental and Social Responsibility

Burberry Annual Report 2023/24

Attracting and retaining diverse talent

Target 1: Ensure shortlists across all recruitment

campaigns are gender balanced

FY 2023/24 shortlists acrossall recruitment campaigns

consisted of 57% Female, 41%Male, 2% Other

Target 2: Aim to increase hiring representation to 25%

ethnic minority candidates in the UK

FY 2023/24, hiring representation in the UK consisted

of 31% ethnic minority candidates

Target 3: Aim to increase hiring representation to 25%

Black/African-American candidates in the USA

FY 2023/24, hiring representation in the USA consisted of 10%

Black/African-American candidates

We focus on ensuring that every stage of our recruitment

process is fair. Steps we have taken include ensuring all job

descriptions are gender neutral, using standardised interview

forms, and running mandatory unconscious bias training for

talent acquisition teams.

Our commitment to fair pay

We are committed to ensuring that all our colleagues are paid

ina way that is both fair and equitable. We are dedicated to the

promotion and adoption of the UK real Living Wage within our

own operations and are proud to be the first luxury retailer and

manufacturer to achieve accreditation as a UK real Living Wage

employer. In April 2024, we implemented a pay increase of 12%

for approximately 1,000 colleagues in the UK. This increase was

above the recommended 10% real Living Wage increase.

We are also dedicated to the promotion and adoption of the UK

real Living Wage across our supply chain. Our longest-standing

supplier, Johnstons of Elgin, the manufacturer of Burberry’s

Heritage Cashmere Scarves, also holds the Living Wage

Employer accreditation.

We are committed to paying all colleagues fairly and providing

them with competitive total reward. We regularly undertake pay

analysis to ensure total reward is in line with their level and

experience, and at a competitive and fair market rate. We have

voluntarily disclosed ethnicity pay and bonus gap data for three

consecutive years, underscoring our dedication to transparency

and monitoring progress.

Our talent acquisition strategy adopts an inclusive approach,

placing value on diversity, authenticity and passion in the

ever-evolving fashion landscape. We partner with our professional

community network and a range of creative institutions, including

The British Fashion Council, The Outsiders Perspective and

TheBRIT School, to bolster our diverse talent pipeline and drive

representation across the business.

In 2023, we announced a partnership with The

BRIT School to support fashion education and

assist young people from diverse backgrounds to

enter the creative industry. As part of the two-year

collaboration, we sponsored the school’s

University of the Arts London-accredited Fashion,

Styling and Textile course which covers a range of

technical skills, including textiles, pattern cutting,

photography, styling, fashion illustration and

graphic design.

Our sponsorship of the course enables the school

to maintain world-class facilities and provide

off-site educational visits at no cost to families.

We also participated in The BRIT School’s

enrichment programme, which facilitates

mentorship and panel sessions from industry

experts, including colleagues from our Product

Design teams.

In addition, we introduced the Burberry Stepping

Stones Bursary Prize, which provides financial

support to two graduating final-year students

fromglobal majority backgrounds pursuing

creativecareers.

The BRIT School

3. These values are based on candidates who chose to voluntarily disclose.

Burberry Annual Report 2023/24

We believe that talent can be found in a wide variety of locations.

We want to diversify where we find our talent, aswell as how

wehire our people. As part of this ambition, we have enhanced

our early careers talent acquisition programmes, including our

Graduate Design Programme and our Undergraduate Programme.

In September, we welcomed our first cohort of undergraduate

placement students into a range of functions across the business,

including Corporate Responsibility, Finance, Merchandising

andSupply Chain.

The programme begins with a Brand Immersion Day, during

which the students hear from leaders across the business about

Burberry’s unique history, brand values, iconic products and

global operations.

Our early careers development programmes

“I’ve already learnt a lot about Burberry

asaluxury fashion company and about

media marketing in general. I think this

placement gives an accurate representation

of what working in the fashion industry

isreally like.”

2023 Undergraduate Placement Student

Strategic Report | Environmental and Social Responsibility

We have several Employee Resource Groups (ERGs) across

Burberry to support our people and champion whatmatters

tothem. Our core ERGs are: Women Empowered, Empowered

Black Network (EBN), LATINX, Sustainability, Working Parents,

Asians in America, LGBTQIA+, Women inTech,and Disability

and Neurodiversity.

Founded by colleagues in our Creative, Digital and

Communications teams, our Disability and Neurodiversity

ERGis a network where members can feel understood and

empowered. It is also an environment where colleagues can

learn more about disability, the ways it impacts our workplace

and how to advocate for change.

Our Women Empowered ERG focuses on opening inclusive

spaces for members to connect, share experiences and

learnfrom each other. During the year, Women Empowered

joined forces with Women in Tech and participated in the

#IAmRemarkable Google empowerment pilot event, which took

participants on a journey to recognise their personal and

professional value and shared techniques onhowto be

comfortable with self promotion.

“As a sister to someone with a visible

disability, launching an ERG for Disability

andNeurodiversity is crucial and of great

significance to me. It plays a vital role in

raising awareness, promoting understanding,

and driving meaningful action toward

creating a more inclusive environment for

everyone at Burberry. It’s not just about

advocating for myself but also for my

brother and others like him.”

Disability and Neurodiversity ERG Co-founder

Championing inclusivity

This collaborative spirit not only elevates individual skills and

confidence but also creates a powerful network that champions

women’s rise to leadership positions and excellence across

Burberry. We continue to stay connected with our ERGs,

providing guidance on best practice to grow their influence

andimpact on our global workforce.

Investing in the development of our people

People are our most valuable asset. Webelieve that continuous

growth and development equips our people to adapt to evolving

demands and increases resilience in their roles. To support

personaldevelopment, we offer a range of in-person and virtual

resources, including our self-directed digital learning platform,

B Learning, and our internal ApprenticeshipProgramme.

Created in collaboration with our people and delivered by external

training providers, our Apprenticeship Programme offers Burberry

colleagues the opportunity to enhance their skills in over 30

disciplines by undertaking further education alongside their role.

We also raise awareness by facilitating conversations between

ourcolleagues and offering learning opportunities in an open

and supportive environment. By doing so, we empower our

Support Inclusion

89%

completion

ofEpisode

1 Mitigating Bias

90%

completion

ofEpisode

2Allyship

colleagues to become meaningful allies, fostering a culture

ofinclusivity andensuring that every member of the organisation

understands, respects and celebrates diversity, equity and

inclusion in their dailyinteractions and decision-making processes.

Burberry Annual Report 2023/24

* Submissions for the award were entered by organisations from around the world, ranging from large conglomerates to small businesses, government and non-profit

organisations. Entries were evaluated by a panel of veteran independent senior industry experts, Brandon Hall Group analysts and executives based on the following criteria:

1. Alignment to business need and environment

2. Programme design, functionality and delivery

3. Adoption, integration, user experience, innovation and creativity

4. Overall effectiveness, impact and measurable benefits

In line with our strategic priorities to drive

category growth and grow our elite client base,

our Retail Excellence team joined forces with

Condé Nast College of Fashion & Design to create

the Styling 101 Programme, a one-of-a-kind,

tailor-made training programme designed to

elevate retail teams’ styling and selling skills.

Over 90 top performing Client Advisors from our

global retail network embarked on a 16-week

learning journey, which included videos sharing

insights from both internal and external experts,

as well as challenging weekly styling tasks.

To boost engagement in the programme, we

featured industry leaders from Vogue, including

Global Editorial Director of Condé Nast, Dame

Anna Wintour CH DBE, former Editor-in-Chief of

British Vogue and European Editorial Director of

Vogue, Edward Enninful OBE, and Global Network

Lead and European Deputy Editor of Vogue,

SarahHarris. The learning journey concluded with

a regional in-person graduation moment during

which participants were awarded certificates from

Condé Nast College of Fashion&Design.

Styling 101

Empowering our Burberry leaders

We believe that great leadership guides our organisation,

setting the tone for our culture and inspiring our people to reach

their full potential. We have a structured framework of three

global programmes, each building upon the other, designed to

guide all Burberry leaders at pivotal milestones in their careers.

Our Manager Development Programme (MDP), Senior Manager

Development Programme (SMDP) and Executive Development

Programme (EDP) have been crafted to elevate leadership

capabilities and demonstrate our Leadership Standards.

Our EDP is tailored exclusively for Directors and above.

Thisprogramme is designed to develop senior leaders’

flexibility and agility, traits crucial for success, particularly

intimes of change and uncertainty. The initiative integrates

ourLeadership Standards and enhances leadership capabilities

through a blend of internally and externally led workshops,

peerdiscussions, networking opportunities and self-directed

development. Over seven months, participants engage in

10hours of learning, including a comprehensive six-month

one-on-one coaching component in collaboration with

behavioural change specialists MindGym.

In 2023, Burberry received the Gold Brandon Hall Award*

forBest Advance in Coaching and Mentoring, recognising

innovation for the design and implementation of our EDP.

Burberry Annual Report 2023/24

PEOPLE IN OUR SUPPLY CHAIN

Introduction

Our commitment to supporting our people and their wellbeing

extends to those across our value chain. Core to this agenda

isrespecting and upholding human rights, combating the risk

ofmodern slavery, and increasing transparency throughout

oursupply chain. We collaborate across our sector with our

partners and with external experts, to protect and nurture

luxurycraftsmanship and traditional techniques.

Policies

Our Responsible Business Principles are designed to ensure

thewellbeing of people involved in the manufacturing of our

products and safeguard all involved against human rights

breaches. These Principles are incorporated into our contractual

agreements with external partners during onboarding. They

include our Ethical Trading Code of Conduct, which sets out

standards to protect the rights of workers across our supply

chain, as well as policies that aim to protect vulnerable workers,

such as a Migrant Worker Policy and Child Labour and Young

Worker Policy. Any violations of our Ethical Trading Code

ofConduct must be remedied in line with our Partner

Non-Compliance Policy.

Approach

Supply chain risk assessment

To identify our most material human rights impacts, risks and

opportunities, we conduct a Human Rights Impact Assessment

(HRIA) of our operations and activities and those of our extended

supply chain every two years. We have implemented this process

since 2014, and continue to evolve and develop our due diligence

approach as well as our Ethical Trading Programme.

Our FY 2022/23 impact assessment identified four key areas

where human rights violations are more likely to be identified

across our finished goods vendors and raw materials suppliers.

These are:

• Working and living conditions, including access to

healthservices

• Worker voice

• Diversity, equity and inclusion

• Modern slavery

Over the last year we have implemented several mitigation

actions focused on these areas. These include:

• Developing an enhanced wellbeing strategy to support our

supply chain partners in improving working conditions and

workers’ happiness at work. We have also rolled out our

Health Programme, which provides workers with vital access

to health training and services, based on their needs

• Continuing to expand the reach of our Burberry-sponsored

NGO-operated hotlines, which are now accessible to

approximately 33,350 workers, a 22% increase from

FY2022/23

• Strengthening our collaboration with the International

Organisation for Migration (IOM) to provide our supply chain

partners with training and access to services regarding the

ethical recruitment of migrant workers in their own supply

chains. The training provides best practices to support the

integration of migrant workers into the local workshoppopulation

Strategic Report | Environmental and Social Responsibility

Burberry Annual Report 2023/24

Finished goods

production sites

679

Total workforce

infinished goods

production sites

62,230

Rest of Europe: 19% Italy: 76%

Asia Pacific: 5%

Male: 29% Female: 71%

Due diligence

During FY 2023/24, we refined our human rights strategic

approach for our wider value chain. To ensure we are prepared

for upcoming human rights due diligence legislation, we have

undertaken a robust review of our due diligence model with the

support of external experts to ensure it meets the expectations

of our external stakeholders, such as international regulations,

consumers, investors and governments. This included a gap

assessment, allowing us to develop an enhanced due diligence

approach, which has been validated by external consultants

andwill be implemented over the next year and beyond.

Our strategic approach, which supports our commitment to

fullyembed human rights into our business practices, consists

of four steps: Integrate, Enhance, Transform and Engage.

Fulldetails of our approach is available in our Transparency

inthe Supply Chain and Modern Slavery Statement FY 2023/24

available on Burberryplc.com.

Our human rights due diligence encompasses and integrates all

the activities we put in place to identify and manage social risks

in our product supply chains. Human rights due diligence dictates

the overarching set of activities we deem appropriate to:

• Assess the risk, in combination with the human rights impact

assessment and via supply chain partner onboarding

• Mitigate the risk, via our Ethical Trading Programme

• Prevent the risk, with capacity building activities and

risk-focused awareness raising sessions deployed by

international entities (such as IOM) designed to prevent

serious violations of human and labour rights of migrant

workers across our product supply chain

• Listen to and act on workers’ voice, with a specific grievance

mechanism managed by international hotline service providers

Our enhanced due diligence methodology is designed to ensure

a robust approach across all risk management dimensions

andprovide adequate abidance to upcoming key regulations

particularly those relevant to enforcing human rights protection.

Advance ethical trading in our supply chain

Target: Continue to ensure our responsible sourcing

standards and audit requirements are upheld by partners

across our supply chain (this applies to finished goods

vendors and key raw material suppliers)

Our Ethical Trading Programme aims to ensure that the

identification, monitoring and mitigation of human rights risks

are considered at every point along our value chain, as well as

adherence to our Responsible Sourcing Standards. To achieve

this, we have a programme of social compliance audits, in

addition to training and activities developed in collaboration

with experts on modern slavery and ethical trading risks,

aswellas with stakeholders in our value chain.

Audits to assess compliance with our Ethical Trading Code

ofConduct (social compliance audits) are carried out across

oursupply chain, with external partners conducting audits

insome cases. Under our current approach to due diligence,

allour supply chain partners are screened and assessed at

theonboarding stage to identify any human rights and modern

slavery risk. We conduct a desktop social compliance assessment

during onboarding before any new supply chain partner is

approved. This includes our partners acknowledging and signing

our Responsible Business Principles, to ensure mutual agreement

that any form of modern slavery is not permitted under any

circumstances. Based on the findings of the desktop risk

assessment, suppliers will either be approved for production

orwill require a full on-site social compliance audit. All audited

facilities receive a corrective action plan, with our Corporate

Responsibility team collaborating to monitor and support

implementation. As part of our regular monitoring activities,

weaim to ensure partners’ ongoing compliance and continuous

improvement against agreed corrective action plans, providing

support and guidance where needed. The frequency and types

of audits implemented are dependent on the individual partner’s

previous audit grading and the associatedrisk.

Progress

We have a target that all our material

finished goods suppliers

are audited against our Ethical Trading standards, and 71%

ofour finished goods suppliers were either audited or remained

inscope of their most recent audit in FY 2023/24.

Only 1% of our finished goods supply chain partners were

identified to have Critical or Business Critical findings and were

managed in line with our Critical procedure in FY 2023/24.

Themain areas of non-conformance with our standards were

related to health and safety

and working hours. We will continue

to work with our partners to identify the root cause of these

issues and implement actions to address and prevent them.

Where there is non-compliance, we require our supply chain

partners to implement a corrective action plan to make progress

and meet all our corporate responsibility standards.

1. Material meaning the top 80% of finished goods suppliers by volume and value or any finished goods supplier or material supplier who is deemed in need of an on-site social

compliance audit (thisisdecided based on our Social Risk matrix).

2. For example, inadequate training around health and safety, or inadequate fire safety management.

Burberry Annual Report 2023/24

Social Compliance Overview

FY2023/24

Onsite social

compliance audits

495

Desktop social

compliance

assessments

100

Finished goods

supply chain

partners that have

had a social

complianceaudit

orremained in scope

from previous audit

71%

^ This metric was subject to external independent limited assurance by PricewaterhouseCoopers LLP (PwC). For the results of that assurance, see PwC’s Independent Limited

Assurance Report and Burberry’s Responsibility Basis of Reporting FY 2023/24 on Burberryplc.com/impact/Resource-Hub.

Vendor Ownership Programme (VOP)

In order to promote social compliance audits throughout the

tiers of our supply chain, we continue to extend our capacity

building programme, the VOP. This programme provides our

VOP partners in the EMEIA region with support to develop and

run their own programme of social compliance audits within

their supply chains. Regular audits focused on human rights

aswell as on health and safety are conducted both by our VOP

partners’ appointed resources and by our internal Responsibility

team, against the Ethical Trading Code of Conduct. Based on

the results of the audit, improvement action plans are developed,

and shared with our partners’ supply chain, who work on

bridging the gaps identified.

Supply chain training

Training our supply chain partners to understand, identify,

mitigate and manage modern slavery risks is a key component

of our Ethical Trading Programme. Suppliers receive training

during onboarding to ensure they have a strong understanding

of the importance of transparency during social compliance

audits and of our critical issues.

We have continued our collaboration with the IOM, broadening

ourglobal programme of training on modern slavery to cover

country-specific risks facing migrant workers, fair and ethical

recruitment, employer responsibilities, migrant workers’ risks

and integration of migrant workers. This training reached

246supply chain partners across 15 countries and territories

andimpacted approximately 57,690 workers in FY 2023/24.

Strategic Report | Environmental and Social Responsibility

Vendor Ownership Programme

FY2023/24

vendors participating

in the VOP

Over

20,500

workers impacted

by the VOP

310

subcontractors

Covering

52%

of our EMEIA

supplychain

Worker grievance mechanisms

We seek to ensure that employees and workers in our supply

chain have access to confidential support and advice. We provide

grievance mechanisms for our employees, including a global

helpline which is managed by an independent company. We also

sponsor confidential hotlines run by NGOs for workers in our

supply chain which provide advice on workers’ rights and

wellbeing as well as confidential support.

Throughout the year, together with our NGO partner, we have

continued to conduct awareness-raising sessions to promote

the use of the confidential hotline to supply chain workers,

highlighting its benefits and all services provided.

Approximately 77% of all complaint calls have been addressed

and responded to, with the remaining cases still being

addressed by the suppliers with the support of the NGO.

Grievance resolution is regularly monitored by the Corporate

Responsibility team.

We ensure a continuous in-depth analysis and investigation of

supply chain related issues through training sessions, which we

facilitate and are delivered both by the Responsibility team and

external consultants. This year, training topics were primarily

regarding our new due diligence model that aligns to upcoming

EU human rights legislation, and how our VOP partners can

ensure their own due diligence processes are updated to meet

these new requirements.

We are committed to ensuring the programme remains effective

and to keep engaging new partners in the programme. During

FY 2023/24, we engaged three new partners across our EMEIA

supply chain. The programme is now in place at 24 suppliers

reaching 20,547 workers across 310 subcontractors, covering

52% of our EMEIA product supply chain.

Burberry Annual Report 2023/24

1. Scale of ratings starting from the lowest is Unsatisfactory, Acceptable, Good and Excellent.

Worker Grievance Mechanisms

FY2023/24

473

calls made to hotlines

Approximately

33,350

workers in our supply chain covered

byBurberry-sponsored confidential

workerhotlines

Approximately

80%

of the finished goods production sites we

source from are covered by national and/or

industrial collective bargaining agreements

Worker Wellbeing Programme

FY2023/24

finished goods

suppliers participated

in our Worker

Wellbeing

Programme

11,650

workers covered

bythe Worker

Wellbeing

Programme

Our Ethical Trading Code of Conduct recognises the right for

employees to join trade unions and have collective bargaining.

Approximately 80% of the finished goods production sites we

source from are covered by national and/or industrial collective

bargaining agreements and many have established union

representation, enabling workers to remain informed and

involved in discussions about their rights.

Further information on human rights and ethical trading can

befound on our website at Burberryplc.com. These include:

• Our Ethical Trading Code of Conduct and Human Rights Policy

• Our Transparency in the Supply Chain and Modern Slavery

Statement FY 2023/24

Extend wellbeing across our supply chain

Target: Extend our Supply Chain Engagement Programme to

further advance wellbeing, livelihoods, inclusivity and worker

voice across our supply chain

Our commitment to wellbeing extends beyond our people to

engage our supply chain partners in programmes which support

the wellbeing of workers across our supply chain. Since its

inception in 2018, we have continually expanded our Worker

Wellbeing Programme, building on its benefits year on year.

Progress

Worker Wellbeing Programme

In FY 2023/24, nine finished goods suppliers participated in our

Worker Wellbeing Programme, reaching 11,650 workers in our

supply chain. The programme aims to educate suppliers about

enhancing worker wellbeing in order to help improve employee

satisfaction as well attract and retain talent. In addition, we

engage with stakeholders to inform response actions, including

surveys to measure worker wellbeing, meeting with supply

chain partners to identify opportunities for improvement, and

formulate site-specific action plans.

Our goal is to ensure continuous improvement of wellbeing

performance across our suppliers, and this year 100% of our

participating suppliers achieved Good

performance.

Health Programme

Additionally in FY 2023/24, we extended our Health Programme

which was established in 2015. During the last financial year,

over 830 supply chain workers participated in the programme

and received approximately three hours training each.

To ensure the training is effective and relevant for the workers

participating, we collaborate with the supply chain partner

andmedical practitioner conducting the training, to identify

what health topics should be covered. The four broad training

modules are: women’s health, men’s health, general health and

mental health, and they include topics such as reproductive

health, cancer awareness and nutrition.

Burberry Annual Report 2023/24

COMMUNITIES

Introduction

We strive to do the right thing for our customers, our communities

and the world around us. Wecontinue our founder’s legacy by

supporting young people, championing ourcommunities and

collaborating with organisations to make apositive impact.

We give at least 1% of profit before tax (PBT) annually to charitable

causes, including amounts donated to The Burberry Foundation

(UK registered charity number 1154468). Established in 2008,

The Burberry Foundation is governed as a separate entity and

operates independently to Burberry Group plc. As such, itfollows

the regulations and laws applicable to charitable organisations

in the UK. The Burberry Foundation’s Board of four trustees

meets quarterly and is chaired by Christopher Holmes, Baron

Holmes of Richmond, MBE.

Policies

Our Community Investment Policy and Procedures sets out

ourapproach to community investment, charitable donations,

humanitarian relief, employee volunteering and fundraising.

Ourcommunity investment methodology aligns with the

Business for Societal Impact (B4SI) framework, a global

standard for measuring and managing social impact.

Approach

Our contributions are directed towards advancing our

Communities strategy, ensuring meaningful impact and

sustainable progress in our core focusareas.

In FY 2022/23, we refined our Communities strategy to

focusonimproving the lives of young people. We do this by

supporting charitable initiatives which inspire young people to

come together in safe environments to explore their creativity,

develop life skills and broaden career horizons.

Strategic Report | Environmental and Social Responsibility

Burberry Annual Report 2023/24

Inspire young people to create

better futures

Target: Positively impact 500,000 people between

FY2022/23 and FY 2025/26, particularly young people

hailing from underserved communities

Providing support to the communities we interact with is key to

delivering maximum positive impact. We continue to expand our

programmes to inspire young people globally, fostering

creativity and building critical life skills.

Progress

This year, 219,377 people were positively impacted through

community programmes supported by Burberry Group plc

andThe Burberry Foundation. This achievement adds to our

cumulative total of 380,162 people since FY 2022/23, advancing

our progress towards our target of 500,000 byFY2025/26.

Central to our performance on this target is our flagship

Burberry Inspire programme, which serves as the cornerstone

of our efforts in supporting young people.

Burberry Inspire

Burberry Inspire is a global programme dedicated to providing

safe spaces for young people to explore their creativity, develop

new skills and build a more positive future.

With a focus on young people aged 10 to 24, Burberry Inspire

brings all youth-focused activities conducted by The Burberry

Foundation and Burberry Group plc together under a single

identity. Burberry Group plc partnerships focus on in-school

programmes, and The Burberry Foundation on community-

based youth organisations. Through a network of partnerships

in nine regions across the world, the initiative has impact at both

global and local levels.

Burberry Inspire offers skills development in a variety of fields,

from creative arts and design to sports and STEM-related

activities, entrepreneurship and initiatives aimed at breaking

down educational barriers. The programme’s ambition is to

create opportunities for more than 500,000 young people

between FY 2022/23 and FY 2025/26 by unlocking their

creativity and driving positive change in their lives as well as

intheir communities.

The Burberry Inspire programme’s global reach

The Burberry Inspire programme is supported by a global network of partnerships across our key operational regions of EMEIA,

Americas and Asia Pacific.

Foundation Funded

1. The International Youth Foundation

(Global partner)

2. OnSide, UK

3. Save the Children, Poland

4. Girls Inc. of New York City

5. New York Edge

6. Heart of Los Angeles

7. Community Youth Center of San Francisco

8. CSV Milano

9. Co&So, Florence, Italy

10. Future for Youth Foundation, South Korea

11. Girl Scouts of Japan

12. Hong Kong Youth Arts Foundation

Foundation funded

Plc funded

Burberry Plc Funded

13. The BRIT School

14. The Outward Bound Trust

15. Castleford Tigers Foundation

16. Shanghai Youth Development Foundation

17. China Soong Ching Ling Foundation

Burberry Annual Report 2023/24

Creative Youth Development framework

At the heart of Burberry Inspire is a commitment to respecting

the diversity of young people’s lived experiences, valuing their

perspectives, elevating their authentic voices, and supporting

their creative development and expression. This approach to

youth development, referred to as Creative Youth Development

(CYD), recognises that creativity takes different forms. For

example, some young people may demonstrate their creative

spark through painting, music, theatre or dance, while others

may express themselves in a STEM-related field.

Drawing on insights from the CYD framework, Burberry Inspire

channels the power of creativity to cultivate young people’s

self-confidence, mental health and wellbeing, sense of identity

and belonging, and aspirations for the future. The programme’s

theory of change revolves around engaging and nurturing young

people’s creativity, providing well-designed opportunities for

growth and learning, and empowering them to contribute

positively to their communities.

Fostering creativity in education

We support fashion students from underrepresented groups

through charitable partnerships with creative institutions around

the world.

Since 2012, we have partnered with the Royal College of Art

(RCA) to establish a creative arts scholarship programme,

supporting the next generation of creative leaders from

underrepresented communities. This programme has expanded

globally to offer more equal access to creative arts programmes

at some ofthe world’s most esteemed creative institutions,

including The New School’s Parsons School of Design in New

York City, Institut Français de la Mode in Paris, and Central Saint

Martinsin London.

The expansion of the creative arts scholarships, alongside our

existing partnership with the RCA, is enabling over 50 students

tobenefit from education programmes in the arts between

2020 and 2025.

We also continue to donate fabrics, yarns and trims to charities

and design schools globally. In FY 2023/24, we donated over

28,500 metres of fabric to the British Fashion Council (BFC)

aspart ofits Student Fabric Initiative, which helps students

studying atBFC Colleges Council member universities to

access high quality materials. Inconjunction with the yearly

donation project, students were invited to submit a creative

design proposal, fullyrealisable using deadstock fabrics and/or

components. Burberry colleagues sat on the judging panel and

helped select four finalists to showcase their work at the BFC

Institute ofPositive Fashion Forum in April 2024.

Protecting communities

We support causes that are important to our colleagues

andback disaster relief.

For example, in September 2023, northern Africa was struck

bytwo devastating natural disasters: an earthquake in Morocco

and catastrophic flash flooding in Libya. In response, we

contributed to British Red Cross appeals for both events.

Ourdonations supported search-and-rescue operations and

provided vital assistance to those affected. Furthermore,

wematched colleague donations to these relief efforts,

doubling the impact of our support to the relevant British

RedCrossappeals.

In October 2023, The Burberry Foundation, supported by

donations made by Burberry Group plc and in collaboration

withSave the Children, established Life Chances to support

young people affected by the humanitarian crisis in Ukraine.

Theprogramme is part of a global partnership between

TheBurberry Foundation and Save the Children.

Life Chances focuses on supporting Ukrainian refugees and

Polish young people aged 14 to 18 in Poland. The programme

isimplemented in partnership with FRSI, Save the Children’s

local partner in Poland, and aims to enhance education, career

opportunities and emotional wellbeing, while empowering

young people to be agents of change in their communities.

Education and social activities are vital during times of crises,

fosteringpurpose, identity and belonging for young people.

Schools in Poland are struggling to meet the educational needs

of an expanding population of Ukrainian refugees.

Life Chances aims to bridge the gaps, offering holistic support

to young people as they adjust to life in their host country.

Theprogramme was developed in consultation with Ukrainian

refugees to prioritise their voices and needs. It was shaped by

the active involvement of young displaced adolescents, parents,

Save the Children partnership

Strategic Report | Environmental and Social Responsibility

caregivers, community leaders and professionals, including

teachers, librarians and social workers, as well as mental health

and psychosocial support specialists. Theirinput, blending

personal and professional experiences,has significantly

influenced the programme’scontent.

Burberry Annual Report 2023/24

219,377

people positively

impacted in

FY2023/24

380,162

people positively

impacted cumulatively

since FY 2022/23

We also provide match funding up to a value of £3,000 for team

activities involving five or more colleagues. This allows colleagues

to provide even more support to the causes they care about and

encourages teams to collaborate outside of their normal roles.

Spark, Burberry’s volunteering and

fundraising platform

Spark, launched in FY 2023/24, is our global volunteering

andfundraising platform, which collaborates with over two

million non-profit organisations across the globe. Acting as

acentral hub, the platform allows colleagues to get involved

involunteering activities or to create their own opportunities

asindividuals or part of a team. Colleagues can also raise funds

and apply for match funding through the platform, as well as keep

up to date with community activities and partnership launches.

Increase volunteering opportunities

forcolleagues

Target: 25% of Burberry colleagues actively engaged

involunteering and fundraising activities by FY 2025/26

Facilitating volunteering and fundraising opportunities for our

colleagues allows us to positively impact their wellbeing while

supporting the communities where we operate. Our people can

volunteer their time to causes which are particularly meaningful

to them or aligned to Burberry’s Communities strategy. This

approach means we can positively impact both our local and

global communities.

Progress

All Burberry colleagues are allotted up to three volunteering

days per year which, in FY 2023/24, they used to support 139

different volunteering and fundraising projects. During the

year,for the first time, Burberry colleagues were able to actively

support young people participating in the Burberry Inspire

programme through a variety of volunteering activities, including

workshops, leadership circles and collaborative creative projects.

These activities were in addition to local employee-led team

building initiatives and targeted skills-based opportunities,

suchas career advice panels.

Community Champions

Our global network of Community Champions helps to organise

and promote local community projects, supporting colleagues

to make a positive impact in their communities. We currently

have 115 Community Champions globally, with each member

facilitating volunteering and fundraising activities, raising

awareness of important causes, driving projects with Burberry’s

charity partners and initiating new local non-profit partnerships.

Acting as a Community Champion offers Burberry employees

opportunities to extend their skills beyond their usual roles, as

seen in a recent initiative led by Burberry’s Women in Technology

Group based in our Leeds office. Employees volunteered at

local schools to inspire the next generation and introduce them

to the diverse career paths available in technology. Activities

included panel discussions and interactive sessions on

business analysis. Through this initiative, over 200 young

people in Yorkshire were reached via volunteering.

Through our partnership with the Outward Bound Trust

education charity, Burberry Community Champions stepped

outof the work environment to inspire young people as part

ofaprogramme of overnight excursions and outdoor pursuits.

InFY2023/24, Community Champions worked with students

from secondary schools in London, Leeds, Castleford and

Keighley, all regions connected to Burberry. Through activities,

including abseiling, hiking and canoeing, the students were

encouraged to push their boundaries, awaken their curiosity

and build their resilience.

Volunteering and Fundraising

FY 2023/24

of colleagues actively

engaged in volunteering

and fundraising activities

2,799 total

volunteeringhours

139 volunteering and

fundraising projects

supported by Burberry

colleagues

92 charities supported

through volunteering,

matchfunding and

in-kinddonations

1. Figure excludes colleague headcount where there are data restrictions on the Spark

volunteering and fundraising platform.

Burberry Annual Report 2023/24

Textile Exchange

We are a member of the Textile Exchange, a global not-for-profit organisation driving positive action on climate change.

Weparticipate in the Textile Exchange’s annual Corporate Fibre and Materials Benchmark (CFMB) survey and in FY 2023/24, Burberry

colleagues across Corporate Responsibility, Materials Innovation and Supply Chain attended the Textile Exchange Conference.

Weare also part of a cross-industry Life Cycle Assessment (LCA) coordinated by the Textile Exchange to better understand

opportunities to improve the environmental impact of cashmere production (more details of this can be found on page 44).

Institute of Positive Fashion – Circular Fashion Innovation Network

We are part of the Circular Fashion Innovation Network, an industry-led programme spearheaded by the British Fashion Council

andUK Fashion and Textile Association in partnership with UK Research and Innovation.

The Fashion Pact

We are members of The Fashion Pact, a global initiative of companies in the fashion industry, which aims to forge a nature-positive,

net zero future for fashion. Our CEO is a member of the steering committee. This partnership provides support to both the Product

and Planet pillars of our Burberry Beyond strategy. As a member of The Fashion Pact, we collaborate with peers to support our

European suppliers with the transformation of energy use at their facilities through the European Accelerator Programme.

Theprogramme focuses on improving data collection, guidance on best practice and financing decarbonisation.

Corporate Water Leaders

We work closely with other brands as part of the Corporate Water Leaders group, a global network of working groups dedicated

tosolving industrial water challenges and furthering water stewardship. The initiative is led by Global Water Intelligence (GWI).

Weare members of the Textile and Leather Group, which brings major brands together to pave the way for greater operational

resilience and more environmentally sustainable business practices within the industry’s global supply chain.

UNFCCC Fashion Charter

Burberry is a signatory to the UN’s Fashion Industry Charter for Climate Action which aims to drive change across the fashion

industry, with an initial goal of reducing aggregate GHG emissions by 30% by 2030. Aligned with the goals of the Paris Agreement,

the Charter defines the issues that will be addressed by signatories. These include reducing carbon impacts at production stage,

selecting climate-friendly and sustainable materials, exploring circular business models, improving consumer dialogue and

awareness, and working with policymakers to catalyse scalable solutions.

ZDHC Foundation

Since 2014, Burberry has been an active member of the ZDHC. Burberry colleagues have served on the Board of the ZDHC

Foundation since June 2018 and, since December 2022, have chaired the ZDHC Board of Directors.

United Nations Global Compact

We are a longstanding member of the UN Global Compact and compete an annual Communication on Progress disclosure across

human and labour rights.

BSR Human Rights Working Group

We became members of Business for Social Responsibility (BSR) in 2022 and joined its Human Rights Working Group, which was

established to help companies implement the UN Guiding Principles on Business and Human Rights (UNGPs). It supports companies

in sharing best practices, challenges, and experiences implementing the UNGPs and provides insight on human rights approaches

and emerging issues.

We work with organisations to help us drive change and advance our Burberry Beyond strategy.

Ourpartnersinclude:

PARTNERING FOR IMPACT

Strategic Report | Environmental and Social Responsibility

Burberry Annual Report 2023/24

Allocation of proceeds

The proceeds of the Sustainability Bond have been allocated

across the three categories outlined in the Framework.

Inaccordance with the Framework, these eligible projects and

spend were completed within the three-year period preceding

and the financial years since the issuance of the Sustainability

Bond in September 2020. The allocation across categories

issummarised below.

Unallocated proceeds

There are no unallocated proceeds from the bond for FY2023/24.

All proceeds have been fully allocated across the three

categories in scope.

Project examples

Green buildings:

Projects include the financing or refinancing of properties with

relevant certification. For existing buildings, certification must

have been received within the last four years.

Certifications include:

a. LEED: Platinum or Gold level

b. BREEAM: Excellent or Outstanding level

Environmentally sustainable management of living natural

resources and land use

As in FY 2022/23, organic cotton does not meet the Eligibility

Criteria under the Framework document and therefore no

proceeds have been allocated for this fiscal year.

Pollution prevention and control

All of our consumer paper-based packaging is widely recyclable

and (FSC

)

certified, reflecting our commitment to support zero

deforestation and sustainable forest management.

In prior years, we allocated proceeds against packaging

procurement where recycled content was more than20%.

TheGreen Building allocation achieved the spend hurdle rate

inFY 2023/24, therefore we deselected the category for

assurance on the Use of Proceeds. It was, however, included

inthe scope 3 emissions section of the Sustainability report.

External assurance of the use of proceeds

Burberry has appointed PricewaterhouseCoopers LLP (PwC)

toprovide independent limited assurance over the allocation

ofuse of proceeds. Information subject to assurance is

denotedwith a ‘ ’. PwC’s Independent Limited Assurance Report

and Burberry’s Sustainability Bond Framework are available

onBurberryplc.com.

Categories of spend

Total allocation from

21 September 2017 to

30 March 2024

£m

United Nations

Sustainable Development

Goals (UNSDGs)

Green buildings 145.4 9

Environmentally sustainable management of living natural resources and land use 90.2 15

Pollution prevention andcontrol 64.4 12

Total 300.0

Burberry is committed to using its position and influence to

drive social and environmental improvements in the value

chain.We see innovation as key to advancing our sustainability

efforts, from the sourcing of raw materials to the manufacturing

of finished products and distribution through our stores and

wholesalers. We enlist the support of investors to deliver these

ambitions by linking Burberry’s Sustainability strategy to its

funding requirements.

Burberry issued a debut five-year sterling Sustainability Bond

on21 September 2020 for £300 million at a coupon of 1.125%

(the ‘Sustainability Bond’). Aspart of the Sustainability Bond

Framework

(the ‘Framework’), a commitment was made to

publish a use of proceeds report within one year of the issuance

of the bond and annually thereafter.

This report constitutes Burberry’s fourth use of proceeds report

to investors and covers the allocation of proceeds from the

Sustainability Bond by category per the Eligibility Criteria as

defined in the Framework.

Eligibility Criteria and oversight

Our Eligibility Criteria categories are:

• Green buildings

• Environmentally sustainable management of living natural

resources and land use

• Pollution prevention and control (including waste prevention,

waste reduction and waste recycling)

Burberry’s Responsibility targets are owned by senior leadership

across all regions and key functions and progress is reviewed

by the Sustainability Committee.

The Sustainability Committee was established in 2019 to review

and oversee the Group’s strategy on ESG issues related to our

Sustainability agenda. TheSustainability Committee convened

nine times during FY2023/24 and is chaired by our CEO.

More information on the Sustainability Committee can be

foundon page 36 of our Environment and Social Responsibility

section and page 107 where our full governance framework

isoutlined inthe Corporate Governance Statement.

In addition to the Sustainability Committee, ESG matters are

regularly discussed at the Ethics and Risk Committees and

updates are shared with the Board and the Audit Committee.

The Sustainability Committee considered the Eligibility Criteria

in the Framework and reviewed the spend on projects eligible

for financing under the Sustainability Bond and allocated the

proceedsaccordingly.

SUSTAINABILITY BOND –

USEOFPROCEEDS REPORT

1. The Framework can be found at: https://www.burberryplc.com/en/investors/debt.html.

2. In order to calculate the percentage of FSC

certified paper-based packaging, we have relied on the accuracy of the information supplied to us by our nominated packaging

suppliers regarding the value of certified paper packaging sold to Burberry.

Burberry has appointed PricewaterhouseCoopers LLP (PwC) to provide limited assurance over the allocation of use of proceeds. Information subject to assurance is denoted

witha

symbol. PwC’s Independent Limited Assurance Report and Burberry’s Sustainability Bond Framework are available on Burberryplc.com.

Strategic Report | Sustainability Bond – Use of Proceeds Report

Burberry Annual Report 2023/24

NON-FINANCIAL AND SUSTAINABILITY

INFORMATION STATEMENT

This section of the strategic report constitutes Burberry’s Non-Financial and Sustainability Information Statement, produced to comply

with sections 414CA and 414CB of the Companies Act 2006.

The information listed is incorporated by cross-reference.

Reporting

requirement

Policies and standards which govern

ourapproach

Information necessary to understand our business

and its impact, policy due diligence and outcomes

Environmental

matters

• Global Environmental Policy

• Responsible Sourcing Policy

• Chemical Management Standards

• Code of Conduct

• Environmental and Social Responsibility section,

pages35 to 62

• Impact section on Burberryplc.com

• Task Force on Climate-related Financial Disclosures

(TCFD), pages 66 to 79

Employees • Code of Conduct

• Our Culture and Values

• Global Health and Safety Policy

• Ethical Trading Code of Conduct

• Global Diversity, Equity and Inclusion Policy

• Directors’ Report, pages 143 to 146

• Directors’ Remuneration Report, pages 125 to 142

• Our Purpose and Values, page 14

• Stakeholder Engagement, pages 80 to 82

• Gender and Ethnicity Pay Gap Report on Burberryplc.com

• Environmental and Social Responsibility section,

pages35 to 62

Respect for

human rights

• Human Rights Policy

• Ethical Trading Code of Conduct

• Child Labour and Young Worker Policy

• Migrant Worker Policy

• Data Protection Policies

• Information Security Policies

• Model Wellbeing Policy

• Global Diversity, Equity and Inclusion Policy

• Partner Non-Compliance Policy

• Impact section on Burberryplc.com

• Transparency in the Supply Chain and Modern Slavery

Statement on Burberryplc.com

Social matters • Ethical Trading Code of Conduct

• Local Stakeholder Engagement Policy

• Volunteering and Match Funding

• Impact section on Burberryplc.com

Anti-corruption

and anti-bribery

• Anti-Bribery and Corruption Policy

• Cash Acceptance Policy

• Fraud Risk Management Policy

• Reflecting the needs of our stakeholders, People, page80

• Reflecting the needs of our stakeholders, Customers,

page 80

Additional

disclosure

• Our Business Model, page 14 to 15

• Environmental and Social Measures (Non-financial KPIs),

pages 30 to 33

• Risk and Viability Report, pages 83 to 90

• Our Purpose and Values, page 14

Strategic Report | Non-Financial and Sustainability Information Statement

Burberry Annual Report 2023/24

TASK FORCE ON CLIMATE-RELATED

FINANCIAL DISCLOSURES

FCA Listing Rule 9.8.6R (8)

The Company has included in its Annual Report climate-related financial disclosures consistent with the Task Force on Climate-

related Financial Disclosures (TCFD) recommendations and recommended disclosures.

TCFD recommendations and recommended disclosures Disclosure location within

Annual Report 2023/24

Governance

Disclose the organisation’s

governance around

climate-related risks and

opportunities.

a. Describe the Board’s oversight of climate-related risks

and opportunities.

Task Force on Climate-related

Financial Disclosures,

pages66 to 79.

b. Describe management’s role in assessing and managing

climate-related risks and opportunities.

Strategy

Disclose the actual and

potential impacts of

climate-related risks and

opportunities on the

organisation’s businesses,

strategy and financial

planning where such

information is material.

a. Describe the climate-related risks and opportunities

theorganisation has identified over the short, medium

andlong term.

Task Force on Climate-related

Financial Disclosures,

pages66 to 79.

Burberry Beyond Climate

Positive 2040 report on

Burberryplc.com.

b. Describe the impact of climate-related risks and

opportunities on the organisation’s businesses, strategy

andfinancial planning.

c. Describe the resilience of the organisation’s strategy,

taking into consideration different climate-related scenarios,

including a 2°C or lower scenario.

Risk management

Disclose how the

organisation identifies,

assesses and manages

climate-related risks.

a. Describe the organisation’s processes for identifying

andassessing climate-related risks.

Risk and Viability Report,

pages 83 to 90.

Task Force on Climate-related

Financial Disclosures,

pages66 to 79.

b. Describe the organisation’s processes for managing

climate-related risks.

c. Describe how processes for identifying, assessing and

managing climate-related risks are integrated into the

organisation’s overall risk management.

Metrics and targets

Disclose the metrics

andtargets used to assess

and manage relevant

climate-related risks and

opportunities where such

information is material.

a. Disclose the metrics used by the organisation to assess

climate-related risks and opportunities in line with its

strategy and risk management process.

Task Force on Climate-related

Financial Disclosures,

pages66 to 79.

b. Disclose scope 1, scope 2 and, if appropriate, scope 3

GHG emissions and the related risks.

Planet pages 41 to 47.

Task Force on Climate-related

Financial Disclosures,

pages66 to 79.

c. Describe the targets used by the organisation to manage

climate-related risks and opportunities and performance

against targets.

Task Force on Climate-related

Financial Disclosures,

pages66 to 79.

Strategic Report | Task Force on Climate-related Financial Disclosures

Burberry Annual Report 2023/24

^ This metric was subject to external independent limited assurance by PricewaterhouseCoopers LLP (PwC). For the results of that assurance, see PwC’s Independent Limited

Assurance Report and Burberry’s Responsibility Basis of Reporting FY 2023/24 on Burberryplc.com/impact/Resource-Hub.

Our approach to TCFD reporting

Burberry has a longstanding commitment to addressing the

impacts of climate change and is taking significant steps to

advance our decarbonisation agenda. Taking into consideration

the net zero commitments of the countries we operate in, we

have pledged to become Net Zero by 2040, which is ahead of

the UK Government’s Net Zero by 2050 target and the EU’s aim

to be ‘climate-neutral’ by 2050. Our emission reduction targets

are aligned to a 1.5°C pathway and have been validated by the

SBTi. To achieve this, we are committed to continued emissions

reductions across our business and supply chain. See the Planet

section on pages 41 to 47 for further details.

Since 2016, we have reduced our market-based scope 1 and 2

emissions by 93%, maintaining our commitment to consume

100% of our electricity from renewable sources. In addition,

wehave reduced our scope 3 emissions by 45.9%^ since our

FY2018/19 base year, against which we are measured for our

2030 and 2040 science-based targets.

We have adopted the recommendations of the TCFD and

sinceFY 2019/20 we have reported on its four thematic areas:

Governance, Strategy, Risk management, and Metrics and

targets. This section builds on our previous reports and

describes our approach to scenario analysis, the results of the

scenario analysis and the actions taken in response to these

results. Climate change and the transition to a low-carbon

economy also present opportunities for efficiency, innovation

and growth, all of which are built into our net zero ambition.

The Burberry TCFD Basis of Reporting outlines how we have

prepared the Financial Statements and disclosures, considering

relevant TCFD guidance publications and the principles for

effective disclosure. We have engaged EY as independent

auditors to provide a limited assurance statement in accordance

with ISAE 3000 on our FY 2023/24 TCFD disclosures. The TCFD

Basis of Reporting and Assurance Statement are available

onBurberryplc.com.

Governance

Board oversight

The Board is responsible for ensuring our approach to

sustainability is integrated into and implemented across the

business. The governance framework of committees and

advisory forums provide updates and key information to the

Board to ensure it can make informed decisions. Our governance

framework is outlined on page 107 and more detail on the

rolesof the Board and its Committees is set out in the Matters

Reserved for Board Decision, and its Committees’ terms of

reference, which are available in the Corporate Governance

section of Burberryplc.com. When reviewing annual budgets,

the Board considers climate-related issues, including spend

associated with our Burberry Beyond strategy. The Board also

considers colleague bonuses aligned to our responsibility

targets. TheBoard is also responsible for overseeing and

monitoring themanagement of risks and opportunities,

including those related to climate change.

Further information on the risk management approach is

included in the Risk and Viability Report on pages 83 to 90.

Management oversight

The Company’s strategy on environmental and climate-related

issues is governed by the Sustainability Committee, which

convened nine times in FY 2023/24 and is chaired by the CEO.

The Committee plays an important decision-making role in

supporting Burberry’s Responsibility strategy, with membership

including senior leaders from across the organisation who are

responsible for the execution of this within their respective

business areas. Topics discussed by the Sustainability

Committee in FY 2023/24 included the net zero transition plan,

ReBurberry initiatives and our nature strategy. The Company

Secretary or their designate is secretary to the Committee.

During FY 2023/24, the Board received two updates from the

Sustainability Committee, which included progress against the

Company’s sustainability-related goals and targets. The Board

also received an update on Burberry’s climate ambitions,

including the revision of our scope 1 and 2 carbon reduction

target, which was approved.

The Risk Committee, which is chaired by the CFO, receives

annual updates on the outputs of the climate-related scenario

analysis and related proposed TCFD disclosures led by the

Sustainable Finance team. The Audit Committee also receives

this update on an annual basis. The Board reviews our climate-

related reporting as part of its overall assessment of the fair,

balanced and understandable nature of the Annual Report.

Knowledge and skills

Burberry seeks to ensure that our Board and senior leadership

have the relevant knowledge and skills to help us build a

business that is both successful and responsible. Details on

thesustainability skills and experience of these Board members

can be found on pages 95 to 99.

We are committed to having a suitable pool of internal

sustainability experts across our business with the relevant

knowledge and skills to support decision-making. Team

members involved in the execution of the Burberry Beyond

strategy participate in external training courses and educational

events, including the Accounting for Sustainability Academy,

tokeep abreast of relevant climate- and nature-related topics.

We also educate employees on various sustainability-related

issues through frequent engagement, focused events, strategic

communications and volunteering opportunities. See

Embedding Burberry Beyond on page 36 for further details.

Remuneration

The remuneration of the Executive Directors is partly linked to

our progress in building a more sustainable future, including

progress towards the Group’s longer-term climate goals, via the

annual bonus plan and a sustainability underpin in the Burberry

Share Plan (BSP).

In FY 2023/24, 25% of the annual bonus for Executive Directors

was once again linked to performance against strategic objectives

linked to our strategy and brand as well as our environmental

and social targets. There will be a sustainability underpin in the

2024 BSP award for the Executive Directors.

In FY 2023/24 we began linking a proportion of our annual

corporate bonus plan for the wider workforce to the achievement

of sustainability metrics in our Product and Planet pillars.

Thishas been well received by colleagues and demonstrates

the value we place on sustainability as part of our strategy.

See Embedding Burberry Beyond on page 36 for further details.

Burberry Annual Report 2023/24

Our scenario analysis considers the impacts of both physical and transition risks:

Physical Risks Transition Risks

Definition These are risks related to the physical

impacts of climate change. They include

both acute weather events, such as

heatwaves, and chronic long-term climate

shifts, such as rising sea levels.

These are the risks that may occur while transitioning

toalower-carbon economy, such as policy, market,

reputation and liability risks. The level of risk depends

onthe nature and speed of the transition.

Timing of

impacts

Acute physical risks are already occurring,

and these are expected to happen

moreoften and with greater severity.

Chronicphysical risks are more likely

inthelong term.

The timing of transition risks is uncertain, but they

aremore likely to occur in the short to medium term.

Strategy

This section describes our key climate-related risks and

opportunities, their potential impact on our business and its

resilience to such impacts, which has been assessed using

scenario analysis as described below. Our strategy to address

climate-related risks is integrated into our business strategy

and decision-making in areas such as capital allocation,

investment appraisal, supply chain planning and raw

materialsourcing.

Our Burberry Beyond 2040 report details our strategic direction

and plan to reduce GHG emissions across our operations and

supply chain. With the majority of our GHG emissions arising

from our extended supply chain, we are focusing on five key

impact areas that each have defined actions to drive progress:

Raw Materials, Circularity, Product-related Waste, Supply Chain

Decarbonisation and Sustainable Transportation. Further details

on initiatives under each of these areas are provided in the

Decarbonising our Value Chain section of the Burberry Beyond

Climate Positive 2040 report, and in theEnvironmental and

Social Responsibility section on pages 35 to62.

Background to scenario analysis

Scenario analysis is a process for identifying and assessing

thepotential implications of a range of plausible future states

under conditions of uncertainty. Scenarios are hypothetical

constructs and not designed to deliver precise outcomes or

forecasts. Instead, scenarios provide a way for the business

toconsider how the future might look if certain trends continue

or certain conditions are met, and to assess Burberry’s

strategicresilience. Scenario analysis is led by Sustainable

Finance, with input from Supply Chain, Corporate Responsibility,

Commercial and Finance teams across the business.

Our approach to scenario analysis

Our scenario analysis incorporates the Company’s financial

forecasts, operational footprint, supply chain information and

environmental data to create a digital twin representation of the

business. The product portfolio is modelled based on our

strategy, with the Company’s value chain being modelled using

historical data. This information is combined with industry

reference scenarios on climate emission pathways, including

assessments by the Intergovernmental Panel on Climate

Change and International Energy Agency, to consider the

potential impact of physical and transition risks on the business.

In addition, we have considered the risk that a market shock

caused by transition to a low-carbon economy would impact the

Company’s cost of debt and how low-carbon innovations would

devalue the Company’s technology. We have concluded that

these risks are not significant at this time due to the Company’s

net cash position, focus on renewable energy consumption and

absence of carbon-intensive machinery. Wewill continue to

monitor and report on these risks.

Scenarios evaluated

The impact of physical and transition risks has been considered

over a range of emission trajectories and global average

temperatures. This is in line with the recommendations of the

TCFD to select a set of scenarios that cover a reasonable

varietyof future outcomes, both favourable and unfavourable.

We have also included a low-emissions scenario aligned to

theParis Agreement aspiration to limit global warming to 1.5°C,

asper the TCFD recommendation that organisations use a 2°C

or lower scenario.

These are defined opposite, alongside a summary of the

potential global impact of physical and transition risks under

these scenarios.

Time horizons considered

We have defined our time horizons as short term (five years),

medium term (five to 20 years) and long term (more than 20

years). The time horizon used for our detailed scenario analysis

is a short-term outlook of five years, during which we can

influence decisions through strategy, capital allocation, costs

and revenues. Typically, three years is used for our financial

andoperational planning, as this is sufficient to cover almost

allapproved capital expenditure projects, and most current

business development projects will be completed in the

three-year period. Our viability assessment is also aligned to

this time period, with going concern typically considered over

18 months. We have extended the period to five years using

agrowth assumption, which more closely aligns with our

expected asset lifetimes and strategic plans.

Strategic Report | Task Force on Climate-related Financial Disclosures

Burberry Annual Report 2023/24

1.5°C > 4°C2°C – 3°C

Average global temperature rise

compared to pre-industrial levels by 2100

Scenario description Global impact of climate-related risks over time

The world takes immediate and substantial

action in line with the Paris Agreement

tolower emissions.

To limit global warming to 1.5°C compared to pre-

industrial levels, collective global action will be needed.

The nature and speed of the transition to a low-carbon

economy are uncertain, but transition risks are more likely

to occur in the short to medium term. By taking such

collective action, the impact of physical risks occurring

inthe long term may be reduced.

The world partially implements policies

tolower emissions with no further

actionstaken.

If limited global action is taken to tackle climate change

and reduce GHG emissions, transition risks would reduce

in the short term. However, inaction would increase the

severity and frequency of physical risks in the long term.

The world takes limited or no actions

tolimitemissions.

Without any global action at all, transition risks would be

limited and the impact of physical risks would become

even greater in the long term.

Building on our detailed analysis, which covers a five-year time

horizon, we have also considered the impact of climate-related

risks in the short-to-medium time period of 10 years, which we

will use to support our strategy in this time frame.

Summary of scenario analysis results

Our scenario analysis considers the financial impact of

climate-related risks on Burberry. This entails estimating the

loss of value to the Company’s discounted cash flows over

thenext five years assuming no mitigating actions are taken.

Overall, the results of our scenario analysis indicate that the

physical and transition risks associated with climate change

could impact the business in the short, medium and long term.

The size of the impact will depend on the nature and speed

ofthe global transition towards a lower-carbon economy.

The1.5°C scenario would have most impact on Burberry in the

short-to-medium term before considering any mitigating actions.

Beyond a five-year time horizon, the level of uncertainty increases.

Transition risks are expected to be the most impactful in the

short-to-medium term, continuing the trends our five-year

scenario analysis have identified. Physical risks are expected

tobecome most impactful in the long term, with the size of the

impact dependent on the success of global initiatives to limit

the repercussions of climate change. These long-term physical

risks may disrupt our supply chain and create operational

challenges. Our commitment to more sustainable, low-impact

materials and our continued focus on innovation are key to

limiting this impact. We will remain agile and continue to monitor

this risk, informed by the latest scientific understanding of

climate change. We will also continue to consider and identify

how the results of our scenario analysis may be utilised to

inform future strategic planning where appropriate.

Each physical and transition risk was modelled independently

due to the complexity and uncertainty associated with

measuring the interconnectivity of risks and how they influence

each other. Planned future mitigating actions, including those to

deliver our ambition to be Net Zero by 2040, have not been

taken into consideration in the scenario analysis.

Summary of response to scenario analysis results

At Burberry, we believe our long-term success depends on

actively addressing the potential impact of climate-related

risksand adapting to potential opportunities. As such, we have

adopted strategies and actions to mitigate these risks and

ensure our strategy adapts to the potential opportunities. Where

such actions have quantifiable investments associated with

them, these are embedded within our Board-approved financial

plans, which are translated into annual budgets and detailed in

the Our Strategic Response section in the Risk tables on pages

70 to 74. We have also considered the impact of climate change

in the preparation of our Financial Statements, which can be

seen on page 165.

As the scientific understanding of climate change and

availability of data evolves, we expect greater rigour and

sophistication in the approach to scenario analysis. We aim

tocontinue developing and updating our scenario analysis

tosupport our assessment of the resilience of our business

strategy to climate-related risks and ensure relevant mitigating

strategies are in place.

The Risk tables on pages 70 to 74 show the detailed results of

our scenario analysis and our strategic response. The financial

impact represents the estimated loss of value to the Company’s

discounted cash flows over the next five years, assuming no

mitigating actions are taken. This impact has been rated as

‘High’, ‘Medium’ or ‘Low’, reflecting materiality to the Company’s

Financial Statements.

Burberry Annual Report 2023/24

Impact

Potential impact on Burberry’s cumulative discounted cash flows over five years, assuming no mitigating actions are taken:

Low: (<£1m – £25m) Medium: (£25m – £125m) High: (£125m – £250m)

How we modelled the risk

We quantified how extreme weather events and chronic

changes in the climate might disrupt manufacturing and

distribution of goods, damage assets and impact retail activities

leading to changes in consumption patterns. We have also

considered how chronic changes in climate may impact yields

of key raw materials we use.

Potential areas of impact

An increase in the frequency and severity of acute weather

events may impact raw material sourcing, disrupt operations

and damage facilities. Facility disruption may result from an

increased risk of tropical windstorms and floods in Asia as well

as increased risk of droughts and heatwaves in Asia, Europe

and the Americas.

The impact of physical risks will become more significant in the

medium and longer term, particularly in the >4°C and 2°C to

3°C scenarios. The impact of chronic physical risks, such as

increasing global temperatures, will be particularly impactful

over this time period.

Key assumptions

• Scenario analysis is based on our current asset base and

value chain. Planned changes to our asset base and sourcing

locations have not been taken into consideration in

quantifying the five-year earnings at risk

• We have considered the extent to which financial impacts

may be passed on to consumers. This has been assessed in

line with expectations of market capacity for price increases

and impact on net cash

Our strategic response

• We are committed to reducing our impact on the environment,

promoting more sustainable practices in our supply chain,

and ensuring that we build resilience in our operations

• We continue to develop our business continuity and

resilienceplans to allow us to respond to the impacts

ofphysical risks at key locations, such as our distribution

centres. Our Incident Management teams were convened

torespond to weather-related events in FY 2023/24

• We continue to consider how we can increase our

understanding of the impact current and future extreme

weather events have on our business, and we are

incorporating climate-related considerations into our supply

chain partner selection processes

• To mitigate water and nature-related risks, we have partnered

with a major cotton supplier to source cotton produced

usingboth organic and regenerative practices. Thiscotton

iscurrently in pilot production in our UK-based internal

manufacturing sites

• We require regular effluent testing and work with over

40wetprocessing facilities to monitor and improve effluent

management practices. We also work with suppliers to

identify water-saving opportunities, such as water recycling

and leak repairs

• We continue to monitor and adapt our supply chain to ensure

we are able to both mitigate climate-related risks to the

Group and achieve our Net Zero by 2040 ambition

• The quantifiable financial investments associated with

theseactions in our supply chain are included in Burberry’s

financial plans

See also: Planet, pages 41 to 47.

Physical risk

Global emissions environment

Average global temperature rise compared to

pre-industriallevels by 2100

> 4°C 2°C – 3°C 1.5°C

Impact Medium Medium Medium

Timeframe for most significant impact: long term

Strategic Report | Task Force on Climate-related Financial Disclosures

Detailed results of our scenario analysis

Burberry Annual Report 2023/24

Global emissions environment

Average global temperature rise compared to

pre-industriallevels by 2100

> 4°C 2°C – 3°C 1.5°C

Impact Low* Low Low

Timeframe for most significant impact: short to medium term

Policy risk

How we modelled the risk

We quantified how the implementation of carbon pricing may

result in increased costs associated with production,

distribution and raw materials.

Carbon prices and projected changes in these have been

considered at a country level.

Potential areas of impact

An increase in costs of production, distribution and raw

materials in the short to medium term, with a higher carbon

price required to achieve a lower temperature scenario.

* Under a >4°C scenario there is potential for a minimal positive impact due to

reversal of current carbon pricing policies.

Key assumptions

• Scenario analysis and quantification of the five-year earnings

at risk does not take into consideration our actions to be

NetZero by 2040 and therefore assumes a growth in GHG

emissions aligned to an average growth rate used in our

product forecast

• GHG emissions are based on our assured FY 2022/23 footprint

• We have considered the extent to which financial impacts

incurred may be passed on to consumers. This has been

assessed in line with expectations of market capacity for

price increases and impact on net cash. Global carbon prices

used in the modelling are shadow prices, which are a measure

of overall policy intensity and expected to increase on a

straight-line basis over the period. The annual carbon price

has been interpolated based on the final carbon price reached

at the end of the scenario modelling period. Theglobal

average carbon prices reached by the end of our scenario

modelling period are:

• 1.5°C = USD 75 per tonne

• 2°C – 3°C = USD 5 to USD 45 per tonne

• > 4°C = USD 0 per tonne

Our strategic response

• In FY 2022/23, we published our Burberry Beyond Climate

Positive by 2040 report, which detailed our baseline GHG

emissions footprint and our commitment to its reduction

• We have reduced our absolute scope 1 and 2 GHG emissions

by 93% from our FY 2016/17 base year and we will continue

toidentify the energy efficiency opportunities required to

reach our 95% reduction target by FY 2026/27. The financial

investment required within our internal manufacturing sites

tomeet this target is included in our financial plans

• Across our extended supply chain, we aim for a 46%

reduction in scope 3 GHG emissions by FY 2029/30. In FY

2023/24, our overall scope 3 emissions decreased by 45.9%^

from our FY 2018/19 base year, against which we are measured

for our validated science-based target. Our scope 3 emissions

remained relatively flat compared to FY 2022/23 with a 0.4%

reduction overall

• The remuneration of our Executive Directors is partly linked to

our progress in building a more sustainable future, including

progress towards our Group climate goals

• Our £300 million Revolving Credit Facility (RCF) is linked to

our scope 3 GHG emissions reduction target

• The quantifiable financial investments associated with these

actions are included in our financial plans. We will continue

toembed our net zero transition plan and monitor this through

KPIs applied across the business. We continue to monitor

regulatory and market developments in carbon pricing

toinform our strategy and financial plans

See also: Planet, pages 41 to 47.

^ This metric was subject to external independent limited assurance by PricewaterhouseCoopers LLP (PwC). For the results of that assurance, see PwC’s Independent Limited

Assurance Report and Burberry’s Responsibility Basis of Reporting FY 2023/24 on Burberryplc.com/impact/Resource-Hub.

Burberry Annual Report 2023/24

How we modelled the risk

We quantified how shifts in consumer preferences towards

more sustainable and less carbon intensive goods may impact

demand for our products.

Consumer preference shifts have been considered at

acountrylevel.

Potential areas of impact

A shift away from products constructed using less sustainable

raw materials, including animal-based products, towards

organic, regenerative or recycled fabrics. This shift is expected

to happen in the short to medium term, and more quickly in

geographical regions where public attention on sustainable

materials used to produce clothing is greater, such as Europe

and North America. The shift will be more apparent in a lower

temperature scenario, which assumes that a higher proportion

of consumers will adopt more sustainable choices.

Key assumptions

• Consumer perception of Burberry products is assumed to be

linked to the carbon footprint of sourcing raw materials,

production and distribution

• Scenario analysis is based on Burberry’s future Product

strategy and revenues, aligned with its updated strategic

vision and projected raw material usage

• We have considered how shifts in consumer preferences may

impact operating margin and net cash. This has been assessed

in line with our current cost structure

Our strategic response

• We are committed to sourcing certified and responsibly

sourced materials and aim to ensure that 100% of key raw

materials in our products will be certified or responsibly

sourced by FY 2029/30 (as defined in our Sustainable Raw

Materials Portfolio)

• We are a member of the Textile Exchange, which is a

not-for-profit organisation working to increase the global

market for sustainable fibres and to create certifiable

sustainability standards for key raw materials

• In March 2024, we released the Burberry Classics collection,

a core commercial range where all ready-to-wear clothing

inthe Summer 2024 collection has a main material which is

responsibly sourced (at least 70% organic or 50% recycled

content). Within beauty we also launched our first refillable

fragrance, Burberry Goddess, and have expanded our

refillable offering with selected new Burberry products and

fragrances

• We continue to invest in the exploration of materials

innovation, which will play a key role in our wider

decarbonisation efforts

• We continue to evolve our aftercare offer and trial new

circular business models. See Opportunities table on pages

75 to 76

• In FY 2023/24, we introduced new fabric- and paper-based

packaging, which allowed us to achieve our target of eliminating

plastic from our consumer packaging. All hardware and zips

have also been removed to facilitate recyclability. See more

on packaging on page 40

• In FY 2023/24, we delivered sustainability training to

over300 colleagues involved in the key stages of product

development and raw material sourcing processes to

accelerate the uptake of our responsible raw materials

sourcing principles

• The quantifiable investments associated with these

product-related initiatives are included in our financial plans

See also: Product, pages 37 to 40.

Market risk

Global emissions environment

Average global temperature rise compared to

pre-industriallevels by 2100

> 4°C 2°C – 3°C 1.5°C

Impact Low Medium High

Timeframe for most significant impact: short to medium term

Strategic Report | Task Force on Climate-related Financial Disclosures

Burberry Annual Report 2023/24

Reputation risk

Global emissions environment

Average global temperature rise compared to

pre-industriallevels by 2100

> 4°C 2°C – 3°C 1.5°C

Impact Low Low Low

Timeframe for most significant impact: short to medium term

How we modelled the risk

We quantified how climate activism due to negative perception

of our climate impact and strategy may result in reputational

damage, disruption to spending patterns and loss of revenue.

Society’s opinion with respect to the threat of climate change

has been considered at a country level.

Potential areas of impact

Society may engage in climate activism in the short to medium

term, with companies perceived as less sustainable being

targeted, decreasing revenue and reducing market share.

Despite minimal shifts in consumer preferences in the short term

under a >4°C scenario, a section of society may engage in general

activism against organisations due to their inaction in relation to

climate change, resulting in disruption and lost revenue.

Key assumptions

• Scenario analysis is based on Burberry’s future Product

strategy, aligned with its updated strategic vision

• We have considered the extent to which financial impacts

incurred may be passed on to consumers. This has been

assessed in line with expectations of market capacity for

price increases and impact on net cash

• Scenario analysis uses a performance percentile to

benchmark Burberry against its wider industry in terms

ofGHG emissions

Our strategic response

• Sustainability is an increasingly important factor in

consumers’ purchasing decisions. Consumers, particularly

younger generations, expect brands to have a clear and

comprehensive agenda with respect to sustainability and

social responsibility, including carbon reduction efforts;

sustainable raw material sourcing and traceability; fair labour

practices; diversity and inclusion; and protecting nature

• We are working to reduce our environmental footprint and

meaningfully support our global communities while seeking

totransform our industry

• Our Sustainability Principles provide our Marketing teams,

Production teams and external partners with a mandatory

andcomprehensive guide to reducing the overall impact

ofemissions from marketing activity, events, visual

merchandising and gifting

• In 2023, Burberry was ranked by CDP in the Leadership band,

receiving an A- for its climate change submission

• We continue to play a role in shaping policy and regulation

within our industry and are working collaboratively with

partners, suppliers and other organisations to achieve our

ambition. This includes the United Nations Global Compact,

The Fashion Pact, The UN Fashion Charter, RE100, Race to

Zero and Accounting for Sustainability which is part of the

King Charles III Charitable Fund

See also: Planet, pages 41 to 47, and Product,

pages 37 to 40.

Burberry Annual Report 2023/24

How we modelled the risk

We quantified how perceptions regarding involvement in

climate-change-driving activities, sustainability claims, and

failure to transition the business toward a low-carbon future

could lead to increased operating expenses through litigation.

Potential areas of impact

Potential operating expenses may arise from fines, settlements

and legal costs in the short to medium term.

Key assumptions

• Historical precedents and recent climate-related litigation

trends have been utilised in modelling the potential impacts

of climate change litigation on Burberry

Liability risk

Global emissions environment

Average global temperature rise compared to

pre-industriallevels by 2100

> 4°C 2°C – 3°C 1.5°C

Impact Low Low Low

Timeframe for most significant impact: short to medium term

Our strategic response

• We monitor and work to continuously improve processes

togain assurance that our licensees, suppliers, franchisees,

distributors and agents comply with Burberry’s contractual

terms and conditions, its ethical and business policies, and

relevant legislation

• Specialist teams at corporate and regional level, supported

by third-party specialists where required, are responsible for

ensuring the Group’s compliance with applicable laws, ethical

and business policies and regulations, and that employees

are aware of the policies, laws and regulations relevant

totheir roles

• Our Global Environmental Policy is part of our Responsible

Business Principles and sets out our commitment to

environmental responsibility and standards for compliance.

These principles are mandatory and apply to all of our

operations and supply chain partners’ activities, insofar

asthey relate to Burberry

See also: Risk and Viability Report, pages 83 to 90.

Strategic Report | Task Force on Climate-related Financial Disclosures

Burberry Annual Report 2023/24

Opportunities

In addition to these climate-related risks, there are also opportunities for mitigating risks and fostering growth for the business

during its transition towards a lower-carbon economy.

Burberry integrates its approach to identifying climate-related opportunities within its broader strategy aimed at effecting positive

change with sustainability as a focal point. Supported by the company’s overarching net zero ambition, the Sustainability Committee

plays a pivotal role in identifying, prioritising, and realising climate-related opportunities. The committee receives pertinent

opportunities from internal teams working on the Planet and Product pillars, which are then evaluated for feasibility and potential

impact. Examples of such climate-related opportunities are summarised below.

TCFD

opportunity

area

Opportunity

description

Actions taken to realise opportunities Time

horizon

ofimpact

Resource

efficiency

Use of more efficient

production and

distribution processes

We are currently working to replace gas boilers at our UK internal

manufacturing sites with more efficient electric boilers.

Short/medium

term

We work closely with other brands as part of the Corporate Water

Leaders group, a global network of working groups dedicated to

solving industrial water challenges and furthering water stewardship.

Short/medium

term

Move to more efficient

buildings

Improved building efficiency through obtaining LEED Gold

certification in 32 additional stores and BREEAM Excellent

certification at our flagship Bond Street store, making a total of 105

certified stores since FY 2018/19.

Short/medium

term

Energy

source

Use of lower-emission

sources of energy

100% of the electricity we consume is matched by an equivalent

amount of renewable generation, sourced from renewable tariffs

orEnergy Attribute Certificates, or generated through on-site

renewables. Solar panels have been installed at our headquarters

inLondon and our distribution sites in Italy and the USA.

Furthermore, we have begun improvement works at our distribution

site in Blyth, where we are also installing solar panels.

Short term

We have identified several opportunities to increase energy

efficiency in our own operations, including maximising lighting

efficiencies through LED upgrades, improving the management

ofheating and cooling systems using temperature boundaries, and

replacing single-glazed windows in stores to reduce heat loss.

Short term

Products

and services

Development and/or

expansion of low-

emission goods and

services

We released the Burberry Classics collection, a core commercial

range where all ready-to-wear clothing in our Summer 2024 collection

has a main material that is responsibly sourced (at least 70% organic

or 50% recycled content).

Short/medium

term

We offer Trench, Cashmere and Leather Refresh services globally

and continue to expand these initiatives. We expanded our refresh

and repair services to include cashmere jumpers, reproofing for

select rainwear garments using organic, biodegradable solutions,

and shoe repairs during FY 2023/24.

Short/medium

term

Development of new

products or services

through research and

development and

innovation

Our Senior Material Innovation Manager leads on identifying and

developing innovative materials that will help decarbonise our

business, with several materials in the pipeline, such as hydroponic

cotton, which is grown through soil-less farming in a vertical

greenhouse, helping to conserve water and minimise land use.

Short/medium

term

Resilience

Participation in

renewable energy

programmes and

adoption of energy

efficiency measures

As a member of The Fashion Pact, we are collaborating with peers

to support our European suppliers with the transformation of

energy use at their facilities through the European Accelerator

Programme. The programme focuses on improving data collection,

guidance on best practice and financing decarbonisation.

Short/medium

term

Resource substitutes/

diversification

We continue to invest in a traceability solution, which will enable us

to better manage risks and opportunities associated with our raw

material supply chains.

Short/medium

term

Burberry Annual Report 2023/24

Risk management

Climate change has been identified as a principal risk to

Burberry, see page 86 and has the potential to impact our

business in the short, medium and long term, as detailed in the

Strategy section on pages 68 to 76.

The overarching approach to identifying climate-related risks is

the same as for all principal risks and is described on pages 83

to 90. Additionally, for climate-related risks, we have undertaken

qualitative scenario analysis since FY 2018/19 and a quantitative

scenario analysis since FY 2019/20 to support our identification

and understanding of such risks.

For each principal risk we have a risk management framework

detailing the controls in place and those responsible for

managing the overall risk and the relevant mitigating controls.

We monitor risks throughout the year to identify changes in

principal risk profiles. Management of climate-related risks is

distributed throughout the organisation, depending on where

the risk resides. For example, climate-related risks in relation to

raw materials in the supply chain are managed by our Sourcing

team responsible for buying commodities.

The cross-functional TCFD working group previously defined

the risk management methodology and approach for identifying

and assessing climate-related risks and mitigating controls.

Using scenario analysis, the working group quantified climate-

related risks to Burberry and evaluated their size and scope.

This supported the working group in prioritising risks and

assessing the resilience of our business strategy to potential

climate-change impacts.

When sustainability and climate-related risks are assessed,

existing mitigating activities and controls are highlighted and,

where relevant and appropriate, additional activities and

controls are implemented if risks fall outside risk tolerance.

Progress against these mitigating activities is assessed by the

Risk Committee and is subject to independent review by Group

Internal Audit as part of the annual audit plan. During the year,

the Audit Committee reviewed the progress made against the

four TCFD pillars, the scenario analysis undertaken and the

proposed disclosure.

Climate-related risks and opportunities are continually

monitored as part of our Enterprise Risk Management

framework. This allows us to evaluate the relative significance

ofour risks based on their likelihood and impact, and to prioritise

accordingly. The business has also developed a risk platform,

which enables us to track our business objectives, including

those which create or protect financial, social, environmental

and reputational value.

We also monitor the environment for new and emerging risks

and to keep abreast of evolving regulatory requirements.

Wewillcontinue to develop our scenario analysis to improve

ourunderstanding of these risks and opportunities, aligning

ourstrategy and actions accordingly.

Metrics and targets

We have several metrics and targets in place to monitor and

manage the most significant risks and opportunities arising from

climate change. These are outlined in the table on pages 77

to78 and are linked to the risks modelled as part of the scenario

analysis and the opportunities identified by thebusiness.

TCFD

opportunity

area

Opportunity

description

Actions taken to realise opportunities Time

horizon

ofimpact

Markets

Access to new markets We continued our rental partnership with My Wardrobe HQ in

theUK, through which members can rent Burberry outerwear,

ready-to-wear, bags and accessories. We also continued our trial

with Cocoon, a luxury bag subscription service in the UK.

Short term

In the UK and USA, we partnered with global luxury resale platform,

Vestiaire Collective, in FY 2023/24, to make pre-loved Burberry

pieces available to purchase.

Short term

Launched in FY 2023/34, our first product upcycle service allows

UK customers to have visible signs of wear and tear on their

Burberry cashmere scarves repaired with custom embroidery,

applique and personalisation.

Short term

See more on our circularity initiatives in the Product section,

pages38 to 39.

Short/medium

term

We recognise the potential impact of climate change, which remains a principal risk for the business. While there are challenges

ahead, the business is well positioned to both address these and capitalise on the identified opportunities, which will arise in the

transition towards a lower-carbon economy. Our net zero ambition will be key in ensuring Burberry’s resilience to the potential

impacts of climate change, supported by our wider Burberry Beyond strategy (see Responsibility section pages 35 to 62) and

underpinned by ambitious targets, which are detailed in the Metrics and targets section on pages 77 to 78.

Strategic Report | Task Force on Climate-related Financial Disclosures

Burberry Annual Report 2023/24

Metrics Targets

Physical risks

Water

We monitor supply chain water management practices,

water intensity in absolute and relative terms, and water

risk based on the geographical area.

Our water risk assessment, which incorporates the WWF

Water Risk Filter, considers the basin physical risk (water

scarcity, water quality and flooding) of our partners’ sites,

the water intensity and the water management using

several KPIs. Our Water Conservation Framework rates

the level of water resilience of our partners’ sites as

hotspot, red, amber, green and excellent, and identifies

hotspots, which are defined as sites in areas ofhigh

water stress with inadequate water management with

respect to their water intensity.

In the case of hotspots, Burberry supports the supply

chain partners in developing action plans to improve their

level of water resilience, and monitors progress quarterly.

• Maintain regular assessment coverage of at least 80% of our

vendors and raw material suppliers

• We aim to have zero hotspots by 2030 and to monitor the

percentage of products delivered by supply chain partners

ratedas hotspot

Policy

GHG emissions

GHG emissions across scopes 1, 2 and 3. GHG emissions reductions:

• Burberry is committed to reducing absolute scope 1 and 2 GHG

emissions by 95% by FY 2026/27 from a FY 2016/17 base year

and to maintaining this year on year from FY 2026/27 to

FY2039/40. Scope 1 and 2 progress for FY 2023/24 is 93%

• Across our extended supply chain, we aim for a 46% reduction

inscope 3 GHG emissions by FY 2029/30 and a 90% reduction

in scope 3 GHG emissions by FY 2039/40 (from FY 2018/19).

InFY 2023/24, our overall scope 3 emissions decreased by 45.9%^

See our Responsibility indicator results on pages 30 to 33 and our

Global GHG emissions table on page 43.

Renewable electricity:

• We targeted the use of 100% renewable electricity across our

operational footprint by end of FY 2021/22. This target has been

achieved and maintained

See our full results on page 42.

These metrics and targets also support the Resource Efficiency

and Energy Source opportunity areas.

Sustainability Bond

Our Sustainability Bond proceeds are allocated

acrossthree categories outlined in the Framework as

EligibilityCriteria:

• Green buildings

• Environmentally sustainable management of living

natural resources and land use

• Pollution prevention and control (including waste

prevention, waste reduction and waste recycling)

This metric also supports the Resource Efficiency

opportunity area.

• The proceeds of the £300 million Sustainability Bond have

beenfully allocated across the three categories outlined in the

Framework. In accordance with the Framework, these eligible

projects and spend were completed within the three-year period

preceding and the financial years since the issuance of the

Sustainability Bond in September 2020

See the Use of Proceeds Report on page 64 for further details.

^ This metric was subject to external independent limited assurance by PricewaterhouseCoopers LLP (PwC). For the results of that assurance, see PwC’s Independent Limited

Assurance Report and Burberry’s Responsibility Basis of Reporting FY 2023/24 on Burberryplc.com/impact/Resource-Hub.

Burberry Annual Report 2023/24

Metrics Targets

Policy

Remuneration

• The remuneration of our Executive Directors is partly

linked to our progress in building a more sustainable

future. In addition, Burberry introduced sustainability

metrics to the annual corporate bonus plan for the

wider workforce with effect from FY 2023/24.

Moredetails of this are set out in the Directors’

Remuneration Report on pages 125 to 142

• In FY 2023/24, 25% of the annual bonus for Executive Directors

was linked to performance against strategic objectives linked

toour strategy and brand as well as our environmental and

socialtargets

• In FY 2023/24, a proportion of our annual corporate bonus plan

for the wider workforce was linked to performance against

sustainability metrics, including our GHG emissions and certified

or responsibly sourced material targets

Market

Product and sustainable raw materials

We measure the following metrics:

• Percentage of traceable and certified materials

• Total number of products refreshed using our

aftercare services. See Product on pages 38 to 39

forfurther details on our ambitions around circular

business models

• Percentage share of low-carbon materials procured

for use in Burberry products

• Percentage of revenue from low-carbon products.

Thisis based on the main material composition of our

key product categories. Details are available in our

CDP Climate disclosure

• 100% of key raw materials in our products to be certified or

responsibly sourced by FY 2029/30 (as defined in our

Sustainable Raw Materials Portfolio). Our six key raw materials;

cotton, synthetics, viscose, wool, leather and feather and down

represent over 90% of the total volume (in weight) of materials

within our products

These metrics and targets also support the Product and Services

opportunity area.

Reputation

Consumer sentiment

• Burberry aims to monitor consumer perception metrics

on the extent to which Burberry is considered a

socially responsible brand

• We remain committed to actively participating in

benchmarks such as CDP and the Workforce Disclosure

Initiative (WDI), and we continue to engage with indices

like the FTSE4Good Index, MSCI, and Sustainalytics

• N/A

Liability

Due diligence

Burberry monitors activity across its supply chain in line

with its Responsible Business Principles, which include

its Global Environmental Policy. Key metrics include:

• Number of supply chain audits and engagement

visitsconducted

• Supply chain chemical management assessment results

• Effluent testing results (available on Burberryplc.com)

• N/A

Strategic Report | Task Force on Climate-related Financial Disclosures

Burberry Annual Report 2023/24

Setting and monitoring targets is key to driving progress

towards our Burberry Beyond strategy, and we have an extensive

range of KPIs focusing on our four pillars of Product, Planet,

People and Communities. These KPIs are integral to ensuring

we both build a better world for the future generation and

safeguard the long-term success of our business. See our

Responsibility Data Appendix on Burberryplc.com, which includes

further details on how we monitor performance in thisspace

and the latest KPI data.

We have also considered the cross-industry climate-related

metrics and targets recommended by the TCFD, and will

continue to develop metrics and targets in relation to transition

risks, physical risks and opportunities where they are deemed

to facilitate comparability.

Our climate-related metrics and targets cover renewable energy

procurement and GHG emissions reductions across scopes

1,2and 3. Burberry has appointed PricewaterhouseCoopers LLP

(PwC) to provide independent limited assurance over selected

Responsibility indicators as part of our Burberry Beyond

strategy, as well as key metrics reported in our Global GHG

emissions table on page 43. Metrics assured by PwC are

denoted with a ^ throughout this Annual Report.

Reporting

We align our reporting on climate-related metrics to recognised

standards, including the GHG Protocol, the UK’s Streamlined

Energy and Carbon Reporting and the TCFD.

In line with the Large and Medium sized Companies and Groups

(Accounts and Reports) Regulations 2008 as amended by the

Companies Act 2006 (Strategic Report and Directors’ Report)

Regulations 2013, our GHG emissions are set out on page 43.

In recognition of the importance of the TCFD and Sustainability

Accounting Standards Board (SASB) being key ESG reporting

frameworks for our stakeholders, we continue to produce a

SASB-aligned disclosures report, which is available within our

Responsibility Data Appendix on Burberryplc.com.

As part of the development of our transition plan, we have

baselined the Company’s current position and set our net zero

ambition (which can be found within our Planet section on pages

41 to 47). We have continued to monitor the developments of the

UK Government’s Transition Plan Taskforce to ensure we align

with its requirements. A key focus for us in FY 2024/25 is the

alignment of our carbon disclosures with the UK’s Transition

Plan Taskforce framework, which includes details of how we

arealigning our business model, operations and products with

anet zero economy. Alongside this, we are developing climate

literacy training for Burberry colleagues to ensure our people

have the skills and knowledge needed to support the successful

delivery of our transition plan.

Since 2010, Burberry has been reporting to CDP, a not-for-profit

charity, which, with the richest and most comprehensive dataset

on corporate action on climate, is considered as a gold standard

for environmental reporting. In 2023, Burberry was ranked

byCDP in the Leadership band, receiving an A- for its climate

change submission.

We recognise that meeting our climate-related targets

isdependent on collective action. Foremost are countries

implementing their Paris Agreement-aligned commitments and

increasing them to more ambitious levels. Improving market

conditions for clean energy supply, such as the rate of installation

of renewable electricity in many countries, reducing costs and

the availability of purchase power agreements will help shift the

rate of decarbonisation at scale. We believe we have a role to

play in helping to shape the required policies and regulations.

We collaborate with partners, suppliers and other organisations

to achieve our ambition. These include the United Nations Global

Compact, The Fashion Pact, The UN Fashion Charter, RE100,

Race to Zero and Accounting for Sustainability which ispart

ofthe King Charles III Charitable Fund.

^ This metric was subject to external independent limited assurance by PricewaterhouseCoopers LLP (PwC). For the results of that assurance, see PwC’s Independent Limited

Assurance Report and Burberry’s Responsibility Basis of Reporting FY 2023/24 on Burberryplc.com/impact/Resource-Hub.

Burberry Annual Report 2023/24

Strategic Report | Stakeholder Engagement

STAKEHOLDER ENGAGEMENT

Burberry is committed to listening to our stakeholders and doing right by them to ensure our long-term success.

Section 172 (1) statement

In accordance with the Companies Act 2006 (the Act), the

Directors provide this statement to describe how they have

engaged with and had regard to the interests of our key

stakeholders when performing their duty to promote the

success of the Company, under section 172 of the Act.

The Board is aware of its obligations, both collectively and

individually, to promote the success of the Company for the

benefit of its stakeholders.

Ensuring regular, comprehensive engagement with our

stakeholders across the business helps us to understand their

perspectives and values mindful of the balance between

competing priorities of different stakeholder groups.

Thisknowledge influences decision-making and planning

bothat management and Board level, allowing us to deliver

ourstrategy, conscious ofthe potential impact of our actions.

Matters submitted to the Board for approval from various areas

ofthe business are required to identify which stakeholder groups

would be impacted and how, to enable the Board to engage in

informed discussions before reaching key strategicdecisions.

The Board’s areas of focus during FY 2023/24 and key

decisions made during the year, including how stakeholder

views were taken into account and the outcome of the

engagement, are set out on pages 104 to 105.

People

We want our people to thrive at Burberry and are committed to attracting and retaining the best talent for our business.

Why they matter to us

Our people are creative, highly skilled in their respective fields and have brand knowledge andinsights.

As Burberry’s greatest asset, weare committed to their professional and personal development.

Ensuring our workforce isengaged and motivated is an important driver for ourbusiness.

What matters to them

• Career development

• Operational efficiency

• Wellbeing

• Fostering a diverse, equitable and

inclusiveculture

Board engagement

Meaningful two-way communication between the Board and our workforce is crucial.

HowtheBoard has engaged:

• The Global Workforce Advisory Forum

(seepage 103 for more detail)

• Colleague surveys

• Attending and participating in global town

halls covering a variety of topics

• During FY 2023/24, Board members

participated in town halls in Mainland

China, the USA and a Global Town Hall for

the Finance and Business Services teams

Customers

We sell to and connect with our customers through directly operated stores, concessions and wholesale partners,

aswellas via Burberry.com.

Why they matter to us

By purchasing our products, our customers ensure Burberry’s viability as a business.

Weaimtomeet and exceed our customers’ expectations with highly creative products

ofexceptional quality. We provide them with exemplary customer service through a seamless

omnichannel experience and invite them to be part of our inclusive Burberry community.

What matters to them

• Product design, craftsmanship, innovation

and newness

• Customer service and brand experience

• Sustainability and circularity

• Addressing evolving customer habits and

changes in buying patterns in the context

of the macroeconomic climate

• Environmental and social impact

Board engagement

Understanding our customers and what they are looking for is key to the success of our brand.

HowtheBoard has engaged:

• Customer insights provided through

presentations from our CEO and senior

management team

• Presentations from regional presidents

andtheir markets

• Regular store visits, including our

refurbished Bond Street store, which was

toured as part of strategy meetings in

October 2023, and the Harrods takeover

event inFebruary 2024

• CEO visits to Mainland China, the USA,

Japan, South Korea, Southeast Asia

andAustralia

• Personal customer experience across

allofour channels

Burberry Annual Report 2023/24

Shareholders

Through our Group’s strategy, we are creating long-term sustainable value for our shareholders.

Why they matter to us

By investing in Burberry, our shareholders ensure our Company’s ability to trade and plan for the

future. By being open and transparent with our shareholders about our business and its strategy,

they can make informed decisions.

What matters to them

• Total shareholder return (TSR) through

share price appreciation and dividend

payments

• Operation of the Capital Allocation

Framework

• Quality of governance

• ESG and, inparticular, climate-related

strategies

• Profitability and business growth potential

Board engagement

The Board benefits from the views of the investment community in its decision-making.

HowtheBoard has engaged:

• Review of all shareholder communications,

including trading updates, results, the

Annual Report and Notice of Annual

General Meeting (AGM)

• AGM enables shareholders to

engagedirectly

• Investor meetings and results

presentations

• Updates provided to the Board on matters

of interest to investors

Communities

Burberry is committed to being a responsible business and supporting our communities.

Why they matter to us

Caring for our communities is one of Burberry’s core values. Through our Burberry Inspire

programme and by supporting The Burberry Foundation (UK registered charity number 1154468),

we are driving positive change in our communities and helping to build a more sustainable future

for young people.

What matters to them

• Positively impacting the communities living

and working around us

• Employment within our communities

• Increased focus on Environmental and

Social Responsibility initiatives

Board engagement

As a global business, the Board recognises the importance of supporting our communities.

HowtheBoard has engaged:

• Approval of the policy of donating at least

1% of PBT to charitable causes, including

The Burberry Foundation. (For more

information on the work of The Burberry

Foundation see page 58)

• Receiving updates on how Burberry

issupporting communities through

sustainability initiatives and projects

• Supporting employee volunteering and

fundraising programmes across the Group

1. Figure excludes colleague headcount where there are data restrictions of the Spark volunteering platform.

Burberry Annual Report 2023/24

Partners

We collaborate with a wide range of partners, including suppliers, companies, NGOs, civilsociety groups

andretailthirdparties.

Why they matter to us

Working collaboratively with our partners allows us to share knowledge and expertise while

exploring opportunities for innovation. We nurture close relationships with members of our

supply chain to drive social and environmental improvements for our communities.

What matters to them

• Increased focus on Environmental

andSocial Responsibility initiatives

• Driving collaboration and contributing

tothe UN SDGs

Board engagement

The Board recognises the importance of engaging with our partners to support our strategic goals.

Howthe Board has engaged:

• The Board receives regular updates on

sustainability-related matters in our supply

chain, including those related to climate

change and how we are working with

partners and suppliers to achieve our

sustainability targets

• The Board reviewed and approved the

Transparency in Supply Chain and Modern

Slavery Statement

• The Audit Committee receives updates

onethical audits across our supply chain

• Receiving updates on collaborations and

knowledge sharing with partners, including

industry experts and peers. Fordetails

ofthe organisations we are workingwith,

see page 62

Governments

Governments have wide-ranging influence on matters which impact Burberry, including the long-term retail environment,

employment laws, trade, environmental priorities, tax and other business matters.

Why they matter to us

Engaging with governments in the countries and territories where we operate facilitates Burberry’s

ability to perform as a business. We endeavour to understand their concerns and raise our own

so we can seek solutions to shared environmental, social, economic and governance issues.

What matters to them

• Industry/product policies such as taxes,

restrictions, trade, competition and

regulations

• Increased focus on Environmental

andSocial Responsibility initiatives

• Employment and workplace policies

• Domestic and local investment

Board engagement

As a global organisation, the Board is mindful of the impact local governments can have on our business.

How the Board has engaged:

• The Board is briefed on engagements

withgovernments throughout the year.

InFY 2023/24 this included developments

in domestic and international policies and

regulations, as well as tax matters such

astrade compliance, cross-border tax

agreements, corporate tax, and indirect

taxes such as VAT

• The Board is also briefed on key matters

including workplace regulations and the

evolving environmental and climate change

regulatory landscape to ensure readiness

for implementation

Strategic Report | Stakeholder Engagement

Burberry Annual Report 2023/24

Risk management approach

Our approach to risk

Burberry’s strategic objectives are at the centre of risk

management activities. Group Risk comprises risk management,

business resilience and insurance. The team assesses, prioritises

and manages risks to support the effectiveness of business

operations. Reporting of risk management activities is provided

throughout the year to the Risk Committee, Audit Committee

and the Board.

Group Risk supports the business to integrate risk into

decision-making, enabling the delivery of sustainable financial,

environmental, social and reputational value. By collaborating

closely with teams across all areas of the business, Group Risk

enhances risk identification and analysis to establish the

required mitigation profile to meet our strategic objectives and

manage risk to within Burberry’s risk appetite.

Our business resilience approach focuses on critical risks and

controls to business operations, and supports the management

of continuity plans in the event of the risk occurring or a

controlfailure. We hold test risk simulations with our business

functions and our Group Incident Management team, a senior

multi-disciplinary team established to manage global incidents,

which is chaired by our CEO.

Our insurance strategy is informed by our risk appetite, risk

tolerance and risk profile. Our Insurance team works closely

with risk management and business resilience to arrange

sufficient insurance cover for insurable risks.

Strategic Report | Risk and Viability Report

RISK AND VIABILITY REPORT

Risk management at Burberry supports value creation and protects existing value.

Risk appetite

The Group’s risk appetite is defined by the Board and outlines

the nature and extent of risk the Group is willing to take to

support responsible and sustainable growth. The Board

isultimately responsible for challenging management’s

development and implementation of effective systems of risk

identification, assessment and mitigation to within risk appetite.

The Board has delegated responsibility for reviewing the

effectiveness of the Group’s internal controls and risk

management arrangements to the Audit Committee. Ongoing

review of these controls is provided through the Risk

Committee, Sustainability Committee, Data Privacy Committee,

Ethics Committee, Group Treasury Committee and supporting

internal governance processes. Internal Audit provide

independent assurance to management and the Audit

Committee on the effectiveness of management actions.

The Group’s risk appetite was reviewed by the Risk Committee

and approved by the Board in March 2024.

Risk appetite statement

We seek to protect the long-term value and reputation of our

brand, maximising commercial benefits to support responsible

and sustainable growth within a defined risk tolerance.

We accept some risk in pursuit of growth through brand

elevation commensurate with our position in luxury fashion.

We approve capital investment in strategic projects and

accepta moderate level of risk in our dynamic pursuit

ofprofitable growth through our creativity and innovation,

balancing a reasonable return on capital with a proportionate

level of commercial risk within the approved Capital

AllocationFramework.

Complying with applicable laws and regulations and doing

theright thing are an essential part of our culture and underpin

our strategic ambition. In evaluating risks and opportunities,

weprioritise the interests and safety of our customers, people,

communities and the environment.

Principal risks

The Board considers principal risks to be the most significant

risks faced by the Group, including those most material to our

performance and those which could threaten our business

model or the future long-term solvency or liquidity of Burberry.

The Group considers short term to be up to two years, medium

term to be two to five years and long term more than five years.

The principal risks do not comprise all the risks and mitigating

actions associated with our business and are not set out in

priority order in the Annual Report. We conduct horizon scanning

to identify additional risks not known to management, or currently

deemed to be less material, which may also have an adverse

effect on our business.

Our risk framework is structured using the following categories

of risk: External, Strategic, Operational and Compliance.

Eachprincipal risk is linked to one of these categories and

mayimpact one or more of our strategic priorities.

Internal audit

Provide assurance over

the previous steps

Strategic milestones

Burberry’s strategic pillars

andmilestones

Internal risks

Identify internal risks

to keymilestones

Internal controls

Identify investments required

to manage risk exposure

to within risk tolerance

External risks

Risks that could impact

Burberry’s ambitions and objectives

Burberry Annual Report 2023/24

Principal risk assessment

We identify and manage risks which could prevent us creating

and protecting financial, environmental, reputational and social

value. At least twice per year, Group Risk conducts a full review

of the Group’s principal risks for endorsement by the Risk

Committee and approval by the Audit Committee. The review

includes an assessment of the comprehensiveness of the

Group’s principal risks, descriptions, movement, outlook,

tolerance levels, associated risks and the effectiveness

ofmitigating actions. Risks are reviewed in the context of the

external and internal operating environment. Where any risks

are outside tolerance, we identify additional plans to mitigate

the risk exposure within a reasonable time frame and monitor

the implementation of these plans.

Business risks

Our approach aligns the risks reported by our specialist

business functions with those identified in our principal risk

analysis. By aligning our risks, we are better able to support the

business by investing in appropriate Group and local controls.

In addition, we have focused areas of risk capability, for example

in our Legal, Brand Protection, IT, Finance and Corporate

Responsibility teams.

Strategic risk

Using our principal risk framework, Group Risk supports the

Group functions to conduct an annual risk assessment on the

key risks which may impede our ability to achieve our strategic

goals. In addition, scenario analysis and risk appetite mechanisms

are used to distinguish the key mitigating actions required to

manage them. Risks and mitigations are assigned owners and

monitored throughout the year.

The Board reviewed the strategic risk assessment in October2023.

Emerging risks

Emerging risks which have the potential to affect our business

on a medium to longer term view, continue to be assessed

alongside our principal risks as part of our risk management

process. We undertake horizon scanning through insights

fromtop-down and bottom-up risk workshops with internal

stakeholders, attending industry forums, and seeking specialist

professional consultation where required.

Review of principal risks

The Risk Committee endorsed the half-year and year-end risk

assessment in October 2023 and April 2024, and they were

approved by the Audit Committee in November 2023 and

May2024, respectively.

Within our half-year assessment, the Group split the

Macroeconomic and Geopolitical uncertainty principal risk,

incorporating Macroeconomic risk within Global consumer

demand and creating the separate classification and monitoring

of Geopolitical Uncertainty. No other changes to the Group’s

principal risks were made during the year.

At the year-end assessment of the Group’s principal risks,

Geopolitical Uncertainty was assessed to have increased

incomparison with the prior financial year. The increase

ingeopolitical activity has increased uncertainty in terms

offuture trading opportunities with certain countries, however,

wecontinue to closely monitor the global developments to

implement appropriate responses.

Strategic pillars

Harness the power of our brand

Bring all product categories to full potential

Strengthen distribution

Operations

Risk movement

Risk has remained stable since the prior financial year

Risk has increased since the prior financial year

Risk has decreased since the prior financial year

Risk tolerance

Low

We adopt a focused risk-based approach, seeking

toallocate resources to mitigate related key risks

wherever possible

Moderate

We adopt a risk-based approach that allocates

resources inline with strategic priorities

High

We have a greater willingness to tolerate risk

andprioritise resources in pursuit of other

strategicobjectives

Strategic Report | Risk and Viability Report

Burberry Annual Report 2023/24

Principal risk summary

Principal risk Movement Tolerance Link to strategy Category

1. Foreign exchange High

External

2. Geopolitical uncertainty

Moderate

3. Climate change Low

Strategic

4. Global consumer demand

Moderate

5. Image and reputation Low

6. Business interruption Low

Operational

7. Cyberattack/loss of data

Low

8. Supply chain Low

9. IT operations Moderate

10. People Low

11. Intellectual property (IP) and brand protection Low

Compliance

12. Regulatory risk and ethical/environmental standards

Low

External risks

1. Foreign exchange

Volatility in foreign exchange rates could have a significant

impact on the Group’s reported results. Burberry isexposed to

uncertainty through foreign exchange movements. Major events

in the macroeconomic and geopolitical environment could impact

foreign exchange rates, which in turn would have ramifications

for theGroup’s reported results.

Risk movement Risk tolerance Link to strategy

High

Examples of risks

• Changes in exchange rates between sterling and the regions

of Burberry’s operations may impact Burberry’s reported

revenues, margins, profits and cash flows

Mitigating actions

• Burberry hedges some external purchases of goods and

some intra-group balances using financial instruments

• Burberry monitors the overall impact of unhedged exchange

movements and provides guidance to shareholders if

exchange rates move on a quarterly basis

• Treasury and Group Finance teams, overseen by the Treasury

Committee, monitor Burberry’s foreign currency exposure.

Further details on Burberry’s approach to managing foreign

exchange risk are given in notes 18 and 27 to the Financial

Statements, pages 190 and 197

2. Geopolitical uncertainty

The Group operates in a wide range of markets and is exposed

to changing political developments and relationships between

governments which may impact consumer demand and affect

our people, reputation, supply chain, trade and ability to operate

within markets.

Risk movement Risk tolerance Link to strategy

Moderate

Examples of risks

• Civil unrest or uprising may impact the wellbeing of

customers, employees and third-party partners and disrupt

normal operations within the region or market affected

• Political instability in the markets in which we operate could

lead to the loss of a key market or changes in customer

sentiment towards Burberry

• Changes in governmental trade policy or international

commerce disputes (via increased customs/excise tariffs,

quotas) may restrict our ability or increase cost to move

product between countries

• Conflict between or within nations could result in sanctions,

restricting or preventing our ability to source, operate and

trade in key markets

• Instability in the geopolitical landscape could disrupt global

supply chains which may impact delivery times, as well as

impact the cost and/or availability of raw materials, energy

and products

Burberry Annual Report 2023/24

2. Geopolitical uncertainty continued

Mitigating actions

• Our strategy leverages its global reach across multiple

customer segments and regions to mitigate reliance

onaparticular customer group or nationality

• We engage external partners to support our specialist teams

with horizon scanning and monitoring of emerging and

current geopolitical developments relevant to our operations

• In the event of a geopolitical incident, our Incident

Management Framework would be invoked to assess the

severity of the incident and take appropriate remedial action

• Updates on geopolitical developments, scenario analysis

anddeep dives are reported to the Risk Committee,

AuditCommittee and Board as appropriate

• Assessment of geopolitical risk is included within approval

processes for new growth opportunities, including

expandingour store network and prospective franchise

andwholesalepartners

• Our supply chain strategy involves assessment and

management of geopolitical risk exposures, with a defined

risk framework for the selection and onboarding of new

vendors and suppliers

Strategic risks

3. Climate change

We recognise the importance of addressing long-term

environmental sustainability challenges and the impacts of

climate change on our business in reputational, operational

compliance and financial terms. Failure to implement appropriate

cross-functional action plans and strategies, such as incorporating

the recommendations of TCFD and our Net Zero by 2040

ambition, could hinder mitigation of long-term climate risks,

increase the risk of regulatory non-compliance, and cause

disruption to our operations, supply chain, reputation and

workforce, impacting Group profits.

Risk movement Risk tolerance Link to strategy

Low

Examples of risks

Physical climate risks:

• Acute physical risks: increased severity of extreme weather

events, from floods to droughts, could cause disruption to

ouroperations and supply chain; impact our business model;

and affect the sourcing of raw materials, as well as the

distribution of our products. Acute physical risks are already

occurring and are expected to happen more often and with

greater severity

• Chronic physical risks: longer-term shifts in climate patterns

and loss of biodiversity caused by changes in precipitation

patterns, rising mean temperatures and rising sea levels

could cause social, economic and operational challenges

Transitional climate risks:

• Reputation: failure of Burberry to meet expectations around

sustainability could lead to climate activism and threaten

relationships with employees, investors, regulators and

interest groups, which may result in a loss of Group revenues

• Market: perception of the sustainability of luxury fashion

products, their materials and associated GHG may have an

impact on consumer behaviours and purchasing decisions.

Failure to meet consumer demand for more sustainable

products and services could threaten our relationship with

consumers and may result in a loss of Group revenues

• Policy: increased environmental standards and policies,

suchas national or international carbon pricing mechanisms,

could affect operational and production costs and the

flexibility of operations

• Liability: litigation against activities which drive climate

change, resulting in potential operating expenses arising from

fines, settlements and legal costs

• More detail on each of the examples of climate change risks

are provided within the TCFD section from page 66

Mitigating actions

• Our response to managing physical, reputational, market,

policy and liability climate-related risks is detailed within our

TCFD section from page 66

4. Global consumer demand

Global consumer demand for Burberry’s products is subject

toseveral factors, including changes in the macroeconomic

environment, which may impact consumer disposable income

for spending in the luxury market and/or affect the cost of our

supply chain operations, and therefore our profitability.

Burberry’s product design, quality, product range, channels,

marketing and customer experience could also impact

consumer demand.

Risk movement Risk tolerance Link to strategy

Moderate

Examples of risks

• Changes in economic growth and/or inflation impacts luxury

industry consumption globally or in a key region, channel,

customer group or product line

• Product, marketing quality, design or our range of offerings

does not meet consumer expectations or respond to local

cultural sensitivities in a key market

• Global inventory planning and allocation differs from

consumer demand

Mitigating actions

• Our growth strategy aims to balance regional concentration

exposures with growth opportunities

• We consult with industry specialists to discuss emerging risks

and consumer preferences in the luxury industry, market

outlook and opportunities for growth

• We have expanded our product offering and services

towiden our target consumer base

• Regional teams provide input to Central Merchandising

andDesign teams on international product preferences and

customer feedback to guide product design and category

offerings which are balanced with global consistency

Strategic Report | Principal Risks

Burberry Annual Report 2023/24

• Cross-functional collaboration across Burberry’s customer-

facing teams enables us to align investment, major focus

areas and messaging across channels and regions

• We continually invest in our global refurbishment programme

• Our product range plan is informed by current market growth

and commercial investment

• Our global strategy provides flexibility to reallocate

inventoryto another region following regional disruption

orreduced demand

5. Image and reputation

We invest in building trust in our brand and protecting our

imageand reputation globally. Unfavourable incidents, unethical

behaviour or negative media coverage relating to the Group’s

people, practices, products or third-party suppliers could

damage the Group’s image and reputation, potentially lead to a

slowdown in sales as well as a loss of customers, and negatively

impact the value of our brand.

Risk movement Risk tolerance Link to strategy

Low

Examples of risks

• Regulatory non-compliance and/or unethical behaviour on

thepart of individuals or entities associated with the Group,

including failure to comply with the Group’s Code of Conduct

or Responsible Business Principles

• Culturally, socio-politically or regionally insensitive product

ormarketing content

• Unfavourable or erroneous media coverage or negative

discussions on social networks about the Group’s products,

content or practice

Mitigating actions

• Governance of reputational risks, issues and mitigations

isprovided through reporting and oversight to the Ethics,

Sustainability, Risk and Audit Committees

• Due diligence processes are followed ahead of engagements

with collaborators, influencers and/or celebrities

• We follow approval processes and editorial controls to ensure

all product and content is reviewed and signed off prior to

external release

• We perform risk assessments and document risk registers

ahead of all campaigns, runways and events

• We provide support and guidance on sustainability and ethical

practices throughout the organisation via team partnerships

• We provide annual training and monitor adherence to the

requirements of our Code of Conduct for our employees

andassociated third parties. Our supply chain ethical due

diligence programme includes supplier audits and supplier

training programmes

• We maintain product quality control processes to ensure our

products meet Burberry’s quality requirements and comply

with all applicable regulatory, chemical and safety standards

• We maintain our Incident Management Framework,

whichincludes monitoring of social networks and

responseprocedures

• Continued development of our global Diversity, Equity

andInclusion strategy

Operational risks

6. Business interruption

Global, regional or country level changes in the geopolitical

landscape, natural catastrophes, health emergencies or changes

in regulations may cause significant disruption to our operations,

as could events at a local level such as fire, security threats,

industrial action or quality control failures.

Risk movement Risk tolerance Link to strategy

Low

Examples of risks

• An incident at a key Burberry location, for example: fire,

flooding, extreme weather, social unrest, industrial strikes,

terrorism, which may disrupt or interrupt our operations

• Trade restrictions, sanctions or geopolitical conflict may

significantly prevent the flow of goods to and from key

locations or regions

• A major incident impacting a key third-party service provider,

supplier or vendor, which in turn causes disruption to Burberry’s

ability to operate normally

Mitigating actions

• Management has policies and procedures in place designed

to prevent, mitigate and manage business interruption risks,

for example our Business Resilience Policy and business

continuity plans. We have developed our Minimum Viable

Company (MVC) assessment, which captures our most

time-critical processes and is the keystone of our business

continuity and resilience strategy

• A Group incident management framework is in place to

ensure that incidents are reported, escalated and managed

effectively at the appropriate level, prioritising the safety and

wellbeing of our people, customers, environment and other

stakeholders

• We have a comprehensive insurance programme supported

by natural catastrophe modelling and insurance optimisation

studies in place to offset the financial consequences of

insured events, including fire, flood, natural catastrophes

andproduct liabilities

• We have robust security arrangements in place across our

store network and all Burberry premises, to protect our

people, visitors, assets and products

Burberry Annual Report 2023/24

Strategic Report | Principal Risks

7. Cyberattack/loss of data

A cyberattack may result in a system outage, impacting core

operations and/or resulting in a major data loss leading to

reputational damage and/or financial loss.

Risk movement Risk tolerance Link to strategy

Low

Examples of risks

• Cyberattack leading to unauthorised system access, leading

to operational disruption, data breach and/or the potential

theft of funds

• Attack on a service provider, supplier or wholesale customer

leading to data loss and/or disruption

• A social engineering attack attempting to exploit human

behaviour to gain access to the Group’s systems, resulting

incompromise of Burberry or customer data

• Ransomware attack causing business disruption and/or

majordata loss

• Credential compromise of customer or employee accounts

leading to business disruption and/or major data loss

• Compromise or misconfiguration of externally facing assets

causing business disruption and/or major data loss

• Personal and/or sensitive data loss or disclosure leading

toregulatory fines and/or reputational damage

• Non-compliance with related international and/or regional

regulatory requirements, for example, EU General Data

Protection Regulation (GDPR)

Mitigating actions

• We implement continuous improvement of 24/7/365 global

security monitoring and analytics capability supported by

security incident response processes

• We implement solutions to help detect personal and sensitive

data loss with improved control over user access management

• We have second line assurance checks reporting on control

effectiveness to Executive and IT management

• Governance is provided through a cross-functional

Cybersecurity Steering Group and separate Data Privacy

Steering Group with Executive membership and sponsorship,

with specialist steering groups for emerging data regulations

• We have enhanced the robustness and evaluation of

cybersecurity incident response plans via improved system

backups, continuity strategies and simulation exercises

• We have a culture of security that encourages and positively

reinforces secure employee behaviours, and is supported

bymandatory security training and awareness activities,

including phishing tests

• We maintain business financial controls to support fraud

detection/prevention

• We have enhanced our third-party due diligence and risk

reporting capabilities

• We have established processes to support embedding

ofsecurity requirements and objectives in new projects

andinitiatives

8. Supply chain

Inability to source raw materials, or to manufacture, procure

anddistribute finished products from suppliers on a timely basis

at the required quality, quantity and cost in accordance with

Burberry’s ethical and environmental standards may impact our

operational, financial and reputational performance.

Risk movement Risk tolerance Link to strategy

Low

Examples of risks

• Geopolitical or socio-political tensions could delay

transportation of product between countries, increase

transportation costs and/or impact the availability of the

workforce. Sanctions, countersanctions and trade compliance

challenges may also impact the effectiveness and efficiency

of our supply chain

• Failure by Burberry or its partners and suppliers to meet the

requirements of the dynamic ESG regulatory landscape could

result in operational restrictions (including prevention of

product delivery to intended destination), financial penalties

and/or brand reputational damage

• Loss of, or disruption in, the operations of one of Burberry’s

key suppliers, vendors and/or sub-contractors which supply

high-quality raw materials or support product manufacturing,

could impact the delivery (quality and/or timeliness) of our

product lines

• An incident (including, for example, social unrest, extreme

weather or fire) at a Burberry site or at those of our supply

chain partners, could put our people, reputation and the

timely delivery of finished goods at risk

• Fluctuations or disruptions to the availability and cost of our

operational inputs (including, for example, raw materials,

sustainable fabrics, energy, etc.) could impact end product

margins and/or timely delivery

Mitigating actions

• Governance of geopolitical risk and ethical practices in

thecontext of the supply chain with reporting to the Ethics

Committee, Risk Committee, Audit Committee and Board

asappropriate

• We have a defined risk framework for the selection and

onboarding of new vendors and suppliers

• The Group’s Responsible Business Principles and

Responsible Sourcing Policy are included within our Code

ofConduct, which forms part of our contractual agreements

with our suppliers and vendors

• We are investing in a comprehensive programme to

implement traceability through the supply chain to support

the Group’s raw material traceability targets and compliance

with emerging ESG regulations. Assurance for the

programme is provided by Internal Audit

• We continue to evolve our supply chain organisational design

to develop our manufacturing base and reduce dependence

on key sites, suppliers and vendors

• We have business continuity plans and insurance for

Burberry’s major distribution and manufacturing sites

• Our product suppliers and vendors are subject to a quality

control programme, which includes regular site inspections

and independent product testing

• We perform quality and quantity checks upon receipt

anddispatch of finished goods at our distribution centres

andretail stores

Burberry Annual Report 2023/24

9. IT operations

Failure to adequately provide, support or recover IT systems or

services underpinning critical processes across the Group,

including Retail, Digital, Supply Chain, HR and Finance, could

significantly impact the Group’s ability to operate.

Risk movement Risk tolerance Link to strategy

Moderate

Examples of risks

• Failure to provide stable and resilient technology platforms

that meet business demands across retail and corporate

environments could result in failure to deliver the strategy

andnegatively impact business operations due to poor

system performance and/or system outages

• Failure to provide technology platforms that meet customer

demands and support innovation could result in failure to

deliver the strategy and loss of revenue

• Extended technology refresh cycles leading to unsupported

hardware systems

Mitigating actions

• We have an established IT operating model, aligned with the

business strategy and functions

• Our mature governance framework is embedded with

Executive representation to support IT investment decisions,

key risk management and operating budgets

• We continuously implement controls to improve operation

ofthe Group’s IT systems, for example, preventative

maintenance, landscape health and third-party management

• We leverage technology partners to support service delivery

and continuous improvement

• We build resilience through Business Continuity and IT

Disaster Recovery plans and exercises

• We have a tested Group Incident Management framework in

place to report, escalate and appropriately respond to incidents

10. People

Changes and challenges in the external environment may

impact our ability to attract, motivate, develop and retain

employees and to maintain a workforce that encompasses

diverse backgrounds with the right capabilities to drive

performance and meet our strategic objectives.

Risk movement Risk tolerance Link to strategy

Low

Examples of risks

• Ability to retain talent and meet the needs of the future

workforce (for example, providing support during more

challenging macroeconomic economic conditions and

meeting the demands of a hybrid workforce), while remaining

competitive in the market in which we operate

• Sustained periods of attrition affecting business continuity,

organisational resilience and customer experience

• Loss of critical talent or business knowledge leading

topotential talent gaps in core business functions

• Ability to retain talent that is reflective of our diversity, equity

and inclusion ambition and the global markets we operate in

• Sustaining employee engagement, wellbeing and inclusion

ina more challenging environment and through ongoing

business change

• Potential adverse impact on our culture

Mitigating actions

• Management regularly reviews talent capabilities to ensure

alignment with evolving business needs, prioritising inclusive

hiring practices and internal talent pool to identify talent,

opportunities to upskill employees and to develop high

potential employees for critical roles

• Our reward philosophy provides colleagues across the Group

with a competitive total reward package, including fixed pay,

variable pay linked to performance, and a suite of benefits

that are market-aligned. Regular pay analysis is conducted

toensure our reward offering is competitive

• We have robust learning and development programmes

toenhance both technical skills and leadership capabilities

aligned to our Leadership Standards (for example, Manager,

Senior Manager and Executive Development Programmes

and comprehensive digital learning resources)

• We have Diversity, Equity and Inclusion policies and practices

with regular review/external benchmarking with industry best

practice to attract external talent and to design and deliver

initiatives and policies that are most important to our colleagues

at global and regional levels

• We offer various colleague engagement moments and

channels (for example, employee forums and colleague

surveys) to listen, gather feedback and take action

• We are committed to our ESG ambition and engage our

colleagues through various initiatives and partnerships

Burberry Annual Report 2023/24

Strategic Report | Principal Risks

Compliance risks

11. Intellectual property and brand protection

Sustained breaches of Burberry’s IP rights or allegations

ofinfringement by Burberry pose a risk to our brand.

Counterfeiting, copyright, trademark and design infringement

inthe marketplace could reduce demand for genuine Burberry

merchandise and impact the luxury positioning of the brand.

Failure to implement appropriate brand protection controls

inconnection with our commitment not to destroy unsaleable

finished products could negatively impact the integrity and

thesustained luxury positioning of the brand.

Risk movement Risk tolerance Link to strategy

Low

Examples of risks

• Counterfeiting and unauthorised use of trademarks and other

IP in the marketplace can reduce the demand for genuine

Burberry merchandise, impact revenues and damage

Burberry’s brand image

• External procedural delays can slow protection for new

branding and signifiers, and are subject to the varying

degrees of protection and enforcement opportunities

depending on the relevant national laws

• Increased challenges against Burberry’s IP rights by third

parties in response to claims of infringement as well as an

increase in bad faith filings

• Allegations from third parties of IP infringement by Burberry

could negatively impact Burberry’s reputation and result in

claims and financial loss through infringing products orcontent

• Distribution outside our authorised network and parallel trade

could negatively impact demand for Burberry products and

harm our luxury reputation

• Unauthorised trade in non-fungible tokens (NFTs) and virtual

items incorporating Burberry’s IP could damage Burberry’s

brand and impact our initiatives in the metaverse

Mitigating actions

• We conduct brand protection enforcement globally. Where

infringements are identified, these are addressed through

appropriate action, including criminal, civil and administrative

legal action and negotiated settlements

• We partner with enforcement agencies and digital and social

media platforms to disrupt the flow of counterfeit products

byenforcing at source level

• We continuously explore new and emerging threats and ways

to combat threats. Existing branding and new brand signifiers

are protected globally by trademarks, copyrights and designs

registered across all appropriate categories, extending into

new fields of activity, including the metaverse, and by

unregistered rights

• The Brand Protection team partners with the Design and

Creative Content teams to ensure that our products and content

do not infringe the rights of third parties, and to establish

adequate protections

• Brand protection controls have been implemented to

safeguard the brand in connection with our commitment to

stop destroying unsaleable finished products

• Our onboarding processes for new vendors involve a brand

protection risk assessment, and we work with vendors to

ensure they respect our IP

12. Regulatory risk and ethical/environmental

standards

The Group is subject to a broad spectrum of laws and regulations

in the various jurisdictions in which it operates. These include

laws and regulations relating to product safety, anti-bribery and

corruption, competition, data, corporate governance, employment,

environment, tax, trade compliance, sanctions, human rights,

and employee and customer health and safety. Changes to laws

and regulations, potential non-compliance or a major compliance

breach, could have a material impact on the business and our

financial performance.

Risk movement Risk tolerance Link to strategy

Low

Examples of risks

• Regulatory non-compliance (including, for example, failure to

comply with applicable data protection legislation, anti-money

laundering regulations, ESG regulations or applicable sanctions

legislation) by the Group or associated third parties working

on its behalf may result in financial costs and/or penalties,

supply chain disruption, legal proceedings and/or reputational

damage to our business

• Failure by the Group or associated third parties to act

inanethical manner consistent with our Code of Conduct,

Responsible Business Principles, or our Responsibility

agenda could result in reputational damage to the Group

• Tax is a complex area where laws and their interpretations

change frequently, including the requirement for increased

transparency. Differing interpretations globally or non-

compliance by Burberry and its associated third parties could

result in increased levels of tax authority challenge, financial

loss and/or reputational damage

• Additional customs duty, trade or non-tariff trade barriers,

and quotas may impact the cost of operations and efficiency

of our global supply chain

Mitigating actions

• Specialist teams at corporate and regional levels, supported

by third-party specialists where required, are responsible for

ensuring the Group’s compliance with applicable laws, tax

requirements, ethical and business policies and regulations,

and that colleagues are aware of the policies, laws and

regulations relevant to their roles. Teams report to specialist

committees (forexample, Sustainability Committee, Ethics

Committee, Data Privacy Committee, Audit Committee)

andBoard as appropriate

• Our Code of Conduct sets out policies and guidance to

ensure that our colleagues and third parties act lawfully

andin accordance with Burberry’s values, including our

Responsible Business Principles. Training on the Code of

Conduct for colleagues is conducted annually. For our supply

chain partners and other key partners, the Code of Conduct

forms part of our contractual agreements

• International tax developments are a key focus of attention,

with Burberry’s global Tax strategy reported to the Audit

Committee on an annual basis

• Our appropriately qualified Legal and Tax teams seek external

advice on legislative changes

• Our Authorised Economic Operator (AEO) and trade compliance

programme is in place to ensure we keep up to date with all

relevant regulations. We work closely with our third-party

specialists to ensure compliance

Burberry Annual Report 2023/24

Corporate planning process

Burberry’s annual corporate planning process consists of

preparing a long-term strategic plan, forecasting the current

year business performance and preparing a detailed budget

forthe following year. These plans form the basis for assessing

the longer-term prospects of the Group. Our strategic planning

process includes detailed reviews of the budget, forecasts and

long-term plans by our CEO and CFO in conjunction with our

Regional and Functional Management teams, followed by

apresentation and discussion of the long-term strategic plan

bythe Board. Delivery against the plan is monitored through

monthly reporting on actual performance, the annual budget

process and subsequent forecast updates.

The key assumptions considered in our strategic plan are future

sales performance by product, channel and geography; the

costto procure and produce our products; other expenditure

plans; cash generation and that there is no material long-term

impairment to the Burberry brand. We also consider the Group’s

projected liquidity, balance sheet strength and the potential

impact of the plan on shareholder returns. Where appropriate,

we have adjusted our planning process to include scenarios

relating to key assumptions as a result of the uncertain

macroeconomic and geopolitical environment.

Assessment of prospects

We remain confident in our ability to consolidate our position

inluxury fashion and are committed to our strategic vision for

Burberry. The Group’s strategy is set out on pages 18 to 21.

Strategic progress made in the current year includes our

refocused storytelling around Modern British Luxury, is helping

to clarify what we stand for, and how we are perceived, in the

minds of luxury consumers. This has helped drive double-digit

growth in elite customer numbers and spend. We have also

strengthened our distribution network with more than 50%

ofstores now new or refurbished.

The Group’s key priorities for FY 2024/25 are to continue to

refine brand expression, incorporating more timeless, classic

attributes in communications. We will increase product focus

instorytelling with dedicated moments to key categories and

prioritise marketing investment in Mainland China and the USA

to strengthen brand visibility and consumer engagement as well

as strengthen customer recruitment and engagement through

locally relevant campaigns and activations.

In product, we have a strong foundation in heritage rainwear

and will build out our core offer in FY 2024/25, ensuring balance

between seasonal and core collections. We will build on outerwear

category strengths and develop full product offer in ready-to-wear.

We have a well-established network of stores in high-visibility

locations, which we have continued to strengthen. We will

continue to deliver our store refurbishment programme and

strengthen visual merchandising in store. We will maximise

commercial opportunity for Burberry.com and expand

omnichannel capabilities and further rationalise our wholesale

channel with focus on EMEIA.

Our drive to deliver Operational excellence is directed towards

unlocking speed and continuing to elevate customer experience,

further embedding cost discipline and efficiencies and

delivering process and technology improvements.

We will continue to focus on our advanced environmental and

social responsibility agenda and deliver against Burberry

Beyond targets.

Balance sheet and liquidity: our objective is to manage the

business efficiently and flexibly, maintaining control and

preserving the long-term value of the Burberry brand while

ensuring we secure the financial headroom required to

fuelgrowth as market opportunities arise. The business

isexpectedto remain cash generative, creating further

optionalityfor investment.

Considering the continuing uncertain global consumer demand

and geopolitical environment, we have prepared several planning

scenarios based on a range of assumptions and potential

outcomes. In assessing the viability of the Group, the Board

hascarried out a robust assessment of the principal risks of the

Group, as set out in the Risk report on page 83, and the principal

risks and uncertainties as set out on page 84.

The Directors have considered the potential impact of the risks

on the viability of the Group.

Basis of assessment

The assessment of viability has been made with reference to

theGroup’s current position and expected performance over a

three-year period to March 2027. This is considered appropriate

for use by the Directors because:

• It aligns with the Group’s approach to long-range planning

• It is sufficient to almost cover all currently approved capital

expenditure projects

• As the Group has little contracted income, and as most

current business development projects will be completed

inthe three-year period, projections beyond this period will

contain long-term growth assumptions

Scenarios

We have developed a range of scenarios, which were informed

by a comprehensive review of macroeconomic scenarios using

third-party projections of macroeconomic data for the luxury

fashion industry and financial outcomes of risks materialising

across the industry over the last 10 years. In developing these

scenarios, the Directors have assumed there is no material

long-term impairment to the Burberry brand.

The Group central planning scenario reflects a balanced

projection aligned to the group’s strategy, a balanced assumption

for economic uncertainty and capital expenditure and dividends

in line with the Group’s capital Allocation Framework. It reflects

FY2024/25 and the subsequent two-year period to March 2027.

As a sensitivity, this central planning scenario has been flexed

by a 13% downgrade to revenues in FY 2024/25 and a 10%

reduction in revenues across the full three-year period,

aswellas the associated consequences for EBITDA and cash.

Management considers this represents a severe but plausible

downside scenario appropriate for assessing going concern

and viability. This was designed to test an even more challenging

trading environment as a result of macroeconomic uncertainty

together with the potential impacts of the Group’s other

principal risks, as described on pages 85 to 90.

VIABILITY STATEMENT

Strategic Report | Viability Statement

Burberry Annual Report 2023/24

For the purposes of the reverse stress test, we have considered

the plausibility of a scenario that erodes the remaining cash

headroom by reference to the lowest cash level in the annual

business cycle. This test identified that the amount of revenue

decline required on top of the severe but plausible scenario

before the Group requires additional fundraising over

thethree-year period to March 2027 was, in the Group’s

opinion,implausible.

The severe but plausible downside modelled the following risks

occurring simultaneously:

• A severe impact arising from a more severe and prolonged

reduction in the GDP growth assumptions across the markets

in which we operate, combined with a reduction to our global

consumer demand arising from a change in consumer

preference compared to our central planning scenario

• An increase in geopolitical tension which reduces GDP

growth assumptions compared to the central planning model

• A significant reputational incident, such as negative sentiment

propagated through social media

• The impact of a business interruption event, resulting

inatwoweek interruption arising from the supply chain

impact,and interruption to one of our channels following

atechnologyvulnerability

• A significant reputational incident such as negative sentiment

propagated through social media

• The occurrence of a one-time physical risk relating to climate

change in FY 2024/25 and the materialisation of a severe but

plausible ongoing market risk relating to climate change

inline with a scenario reflecting a 2°C global temperature

increase compared to pre-industrial levels

• The payment of a settlement arising from a regulatory

orcompliance-related matter

• A short-term impact of a 10% weakening in a key non-sterling

currency for the Group before it is recovered through

priceadjustment

• The repayment of the Sustainability Bond without raising

newfinance

This approach provides the Board reasonable comfort that the

Group’s going concern and viability positions have been

assessed to a severity level, which more than accommodates

the impact of one or more of the Group’s principal risks.

Funding

In assessing the viability of the Group, the Directors have also

considered the Group’s current liquidity and available facilities

(set out in note 27 of the Financial Statements), financial risk

management objectives and hedging activities (set out in note

27 of the Financial Statements). In our central planning and

severe but plausible downside scenarios, the Group maintained

the necessary liquidity levels.

The Group has a five-year £300 million 1.125% unsecured

sterling Sustainability Bond which is due for repayment in

September 2025, within the going concern and viability period.

The viability modelling undertaken includes the capacity for this

to be repaid in September 2025 during the period under review.

The Group has access to a £300 million Revolving Credit Facility

(RCF), currently undrawn and assumed to be available during

the going concern and viability assessment. The Group has

considered renewal of the RCF ahead of maturity in July 2026

and are confident that this will be available.

Conclusion

Based on this assessment, the Directors have a reasonable

expectation that the Group will be able to continue in operation

and meet its liabilities over the period to March 2027.

The Strategic Report up to and including page 92 was

approvedfor issue by the Board on 14 May 2024 and signed

onits behalf by:

Gemma Parsons

Company Secretary

Strategic Report | Viability Statement

Burberry Annual Report 2023/24

CORPORATE GOVERNANCE

STATEMENT

Chair’s Introduction 94

Board of Directors 95

Executive Committee 100

Corporate Governance Report 101

Division of Responsibilities

Governance Structure and Division of Responsibilities 107

Composition, Succession and Evaluation

Board Evaluation 111

Report of the Nomination Committee 113

Audit, Risk and Internal Control

Report of the Audit Committee 118

Remuneration

Directors’ Remuneration Report 125

Directors’ Report 143

Burberry Annual Report 2023/24

Corporate Governance Statement | Chair’s Letter

Board effectiveness

The Board conducted an externally facilitated evaluation of its

effectiveness during the year. This in-depth review covered the

performance of the Board as a whole as well as the effectiveness

of our Board Committees. I am pleased to report that the

outcome of the review was that the Board operates effectively.

There are nevertheless, a number of areas identified which

would enhance effectiveness and the Board will focus on these

duringFY 2024/25. Details of the process, conclusions and

recommendations are set out on page 111. We also report on the

actions taken during FY 2023/24 following last year’s internal

evaluation on page 112.

One of my duties as Chair of the Board is to review the

performance of my fellow Directors, a process which I carry

outeach year, with the aim of ensuring that each Board member

is able to contribute to the best of their ability. Inducting new

Directors thoroughly is critical to the continuing effectiveness of

the Board. The Nomination Committee has performed the annual

review of Directors’ time commitments and independence on

behalf of the Board and further information on its considerations

are contained within the Nomination Committee Report on

pages 113 to 117.

Employee voice

The Board continues to take opportunities to hear the view

ofBurberry employees through a variety of activities, including

meetings of the Global Workforce Advisory Forum. Forum

meetings provide my fellow Non-Executive Directors and me

with the opportunity to shine a light on Burberry’s culture, find

out whether our values are embedded and hear first-hand what

is top of mind for our colleagues around the world. It is very

valuable feedback and I am grateful to our Forum members

forparticipating and for their frank and constructive

commentsand advice.

Compliance with the UK Corporate

Governance Code

Burberry complied with the requirements of the UK Corporate

Governance Code during the financial year. In January 2024,

the Financial Reporting Council published its revised 2024 UK

Corporate Governance Code (the ‘new Code’) and we will be

reviewing our governance framework and practices in light of

these reforms to understand the impact and ensure readiness

to report against the new Code for FY 2025/26.

I am pleased with the way our governance processes have

operated during the year and served to support Burberry for

thelong term.

Gerry Murphy

Chair

CHAIR’S INTRODUCTION

Dear Shareholder,

On behalf of the Board, I am pleased to present the Corporate

Governance Report for the year ended 30 March 2024. This

report describes Burberry’s corporate governance framework

and procedures and summarises the work of the Board and

itsCommittees to illustrate how we have discharged our

responsibilities this year.

Areas of focus

It has been a busy year for your Board which has met more

frequently than usual and formally on eight occasions. I am

grateful to my fellow Board members for their engagement

andcommitment during the year. Our Board meetings, which

included an extended strategy session in October 2023, have

provided the Directors with a number of opportunities to

engage with executive management from across the business

and get to know newer members of the Executive Committee.

As we have reported elsewhere in this Annual Report,

FY2023/24 has brought some challenges and it has been more

important than ever that the Board has operated effectively

andfocused on the key issues. Areas of focus for the Board

during the year are set out on page 104. The overriding theme

for the Board has been to oversee the execution of Burberry’s

strategy, whilst supporting management in a challenging

tradingenvironment.

Board changes during FY 2023/24

Matthew Key retired as a Non-Executive Director following the

Annual General Meeting (AGM) on 12 July 2023, having served

over nine years on the Board. Following Matthew’s retirement,

Alan Stewart was appointed Chair of the Audit Committee.

On 17 July 2023, we welcomed Kate Ferry to the Board as Chief

Financial Officer (CFO) and, on 1 September, Alessandra Cozzani

joined Burberry as a Non-Executive Director and member of

theAudit and Nomination committees. More information on the

induction programmes for Kate and Alessandra can be found

inthe Nomination Committee Report on page 116. We have also

made some changes to our Board committees, with Danuta Gray

being appointed as a member of the Audit Committee and Alan

Stewart being appointed as a member of the Remuneration

Committee on 12 July 2023.

As announced on 12 April 2024, Debra Lee will retire as a

Non-Executive Director following the AGM in July 2024, having

served on the Board since 1 October 2019. I would like to thank

Debra for her wise counsel and service to the Board during the

last five years.

“The Board continues

to take opportunities

to hear the view of

Burberry employees

through a variety

ofactivities”

Burberry Annual Report 2023/24

Corporate Governance Statement | Board of Directors

BOARD OF DIRECTORS

Dr Gerry Murphy (68)

Chair

• Appointed as Chair: 12 July 2018

• Appointed: 17 May 2018

• Nationality: Irish

• Board skills

Key skills and experience

Gerry brings substantial international

and senior management experience

tothe Board, in addition to in-depth

knowledge of managing business

transformations. His understanding of

UK corporate governance requirements

and extensive experience in the retail

sector provides the Board with highly

relevant and valuable leadership as

Burberry continues to focus on delivering

long-term sustainable value for all

ourstakeholders.

Current appointments

• Chair, Tesco plc

• Trustee, The Burberry Foundation

• Senior Advisor, Perella Weinberg

• Mentor, J&A Mentoring

Previous appointments

• Chair: Tate & Lyle plc and The

Blackstone Group International (and

partner in the firm’s private equity

investment unit)

• Non-Executive Director: British

American Tobacco plc, Merlin

Entertainments plc, Reckitt Benckiser

plc, Abbey National plc and Novar plc

• CEO: Kingfisher plc, Carlton

Communications plc (now ITV), Exel

plc and Greencore Group plc

Jonathan Akeroyd (57)

Chief Executive Officer

• Appointed: 15 March 2022

• Nationality: British

• Board skills

Key skills and experience

Jonathan is an experienced leader with

astrong track record of building luxury

brands and driving profitable growth.

Hehas extensive experience across the

fashion and luxury goods sector, with

afocus on brand and product elevation

and strategic development, as well as

digital and global expansion. He shares

Burberry’s values and appreciation

ofcraftsmanship, creativity and quality.

Jonathan’s expertise and leadership

skills have been pivotal in advancing the

next phase of Burberry’s evolution.

Previous appointments

• CEO of Gianni Versace SpA

• President and CEO of Alexander

McQueen

• Harrods: various senior retail roles,

including Executive Merchandise

Director and Director of Menswear,

Sports and Childrenswear

Burberry’s Board is responsible for the long-term success of our Company and is accountable to its shareholders.

Committee key

Chair

Audit Committee

Nomination Committee

Remuneration Committee

Skills key

Operational excellence

Luxury brands

Digital and media

Environment/sustainability

Retail, sales and marketing

Financial expertise

Burberry Annual Report 2023/24

Corporate Governance Statement | Board of Directors

Orna NíChionna (68)

Senior Independent Director

• Appointed: 3 January 2018

• Nationality: Irish

• Board skills

Key skills and experience

Orna has strong UK plc and international

business experience, especially in the

consumer and retail markets. She also

brings to the Board significant strategic,

financial and governance experience.

Orna is a committed environmentalist

and was Chair of the Soil Association

(which campaigns for more

environmentally friendly food and

farming) for six years. Her passion for

the environment is an asset to Burberry

as we continue to drive positive change

and build a more sustainable future

through our ongoing Environmental and

Social Responsibility agenda.

Current appointments

• Trustee, Institute for Fiscal Studies

• Trustee and Chair, The Eden Trust

Previous appointments

• Senior Independent Director: Saga plc

Bupa, HMV, Northern Foods and Royal

Mail

• Non-Executive Director: Bank

ofIreland UK

• Interim Chair, The National Trust

• Chair, Founders Intelligence

• Partner, McKinsey & Company and

co-lead of its European Retail Practice

Fabiola Arredondo (57)

Independent Non-Executive

Director

• Appointed: 10 March 2015

• Nationality: American

• Board skills

Key skills and experience

Fabiola built and led a major division

ofYahoo! Inc. and brings relevant

international, strategic and operational

experience in the internet and media

sectors to the Board. Through her deep

engagement with the World Wildlife

Fund, Fabiola’s background also includes

overseeing sustainability initiatives.

Herdigital and consumer background,

coupled with her extensive international

non-executive directorship experience,

make Fabiola an important member

ofthe Board.

Current appointments

• Non-Executive Director: Campbell

Soup Company and Fair Isaac

Corporation

• National Council Member, World

Wildlife Fund for Nature

• Member, Council on Foreign Relations

• Board Member, FINRA Board

ofGovernors

• Managing Partner, Siempre Holdings

Previous appointments

• Non-Executive Director: Experian plc,

BOC Group plc (now Linde Group),

Saks Incorporated (now Hudson’s Bay

Company), Bankinter S.A., National

Public Radio, Rodale Inc., Intelsat Inc.,

Sesame Workshop and the World

Wildlife Fund UK and USA

• Senior executive roles at Yahoo! Inc.,

the BBC and Bertelsmann AG

Kate Ferry (51)

Chief Financial Officer

• Appointed: 17 July 2023

• Nationality: British

• Board skills

Key skills and experience

Kate is a highly experienced Chief

Financial Officer, having held roles

inboth public and private companies.

Inaddition to her financial acumen,

Katehas extensive experience driving

business transformation and strategic

development, and a deep understanding

of public markets. She has particular

expertise in the retail sector, as well as

an excellent understanding of the luxury

industry. In her early career, Kate

wasinvolved in numerous IPOs,

includingBurberry’s in 2002. Kate

isaCharteredAccountant.

Current appointments

• Non-Executive Director and Chair

ofthe Audit Committee, Greggs plc

• Trustee and Chair of the Audit

Committee, British Olympic

Foundation

Previous appointments

• Chief Financial Officer of McLaren

Group Limited

• Group Chief Financial Officer of Talk

Talk Telecom Group PLC

• Corporate Affairs Director

ofCarphone Warehouse PLC

• Director within the retail sector equity

research team at Merrill Lynch

Burberry Annual Report 2023/24

Alessandra Cozzani (61)

Independent Non-Executive

Director

• Appointed: 1 September 2023

• Nationality: Italian

• Board skills

Key skills and experience

Alessandra brings to Burberry both

financial expertise and a profound

understanding of the luxury market,

having spent over 20 years at Prada

Group. A highly experienced Chief

Financial Officer, Alessandra’s career

spans a variety of finance roles, including

financial management and control,

accounting, tax, treasury and insurance,

as well as investor relations. She started

her career as an auditor at Coopers

&Lybrand.

Current appointments

• Executive Director, Esselunga SpA

(Italian grocer)

Previous appointments

• Group Chief Financial Officer and

Executive Director of Prada SpA (listed

in Hong Kong S.A.R., China), previously

Group Investor Relations Director and

other financial management roles

within Prada Group

Sam Fischer (56)

Independent Non-Executive

Director

• Appointed: 1 November 2019

• Nationality: Australian

• Board skills

Key skills and experience

Sam has a wealth of global leadership

experience, including leading premium

heritage brands from across the lifestyle

and consumer sectors. He has a track

record in driving business growth

andadeep understanding of key Asian

markets, which is an asset to Burberry as

we continue to engage our communities

in the region with innovative products

and culturally relevant experiences.

Current appointments

• CEO, Lion Group

Previous appointments

• Senior executive roles at Diageo plc,

including President, Asia Pacific and

Global Travel, Executive Committee

member, Managing Director for

Greater China and Managing Director

for South East Asia

• Various commercial and general

management roles at Colgate-Palmolive,

including Managing Director for

CentralEurope

Ron Frasch (75)

Independent Non-Executive

Director

• Appointed: 1 September 2017

• Nationality: American

• Board skills

Key skills and experience

Ron has spent over 30 years working in

the retail industry. He has clear strategic

acumen, strong leadership skills and

wide-ranging experience of working

withluxury fashion brands. While at

Saks, he was instrumental in developing

the company’s private-label collections.

Ron’s merchandising skills and

experience within the fashion industry

will continue to play a pivotal role as

Burberry continues to grow and we

strengthen our performance in the

luxuryfashion market.

Current appointments

• CEO, Ron Frasch Associates LLC

• Non-Executive Director, Crocs Inc.

Previous appointments

• Non-Executive Director: MacKenzie

Childs and Aztech Mountain

• President and Vice Chairman, Saks

Fifth Avenue Inc.

• President and CEO, Bergdorf

Goodman

• President of the Americas for an

Italianlicensing company ofluxury

fashion brands

Burberry Annual Report 2023/24

Danuta Gray (65)

Independent Non-Executive

Director

• Appointed: 1 December 2021

• Nationality: British

• Board skills

Key skills and experience

Danuta is a highly experienced

Non-Executive Director and Chair with

astrong understanding of consumers,

technology, sales and marketing within

the UK and international business

markets gained through her executive

career. Her extensive UK plc board

experience and understanding of UK

governance requirements make her

astrong asset to our Board.

Current appointments

• Chair: Direct Line Insurance Group plc

and Croda International plc

• Board member, Employ Autism

Development

• Trustee, The Resolution Foundation

Previous appointments

• Chair, St Modwen Property plc

• Senior Independent Director,

Aldermore Bank plc

• Non-Executive Director and

Remuneration Committee Chair:

OldMutual plc and Page Group plc

• Non-Executive Director: Paddy Power

plc, Aer Lingus plc and UK Ministry

ofDefence

• CEO: Telefónica O2 and Executive

Director, Telefónica Europe plc

Debra Lee (69)

Independent Non-Executive

Director

• Appointed: 1 October 2019

• Nationality: American

• Board skills

Key skills and experience

Debra is one of the most influential

female voices in the entertainment

industry and has a deep understanding

of the American consumer and culture.

She is the former Chairman and CEO

ofBlack Entertainment Television,

whichunder her leadership became the

largestglobal provider of entertainment

fortheAfrican-American audience

andconsumers of black culture.

Debraisapassionate advocate for

womenandpeople from ethnically

diversebackgrounds.

Current appointments

• CEO and founder, Leading Women

Defined, Inc.

• Non-Executive Director: Warner Bros.

Discovery, Inc., Marriott International,

Inc. and The Proctor & Gamble Company

Previous appointments

• Chairman and Chief Executive Officer,

Black Entertainment Television LLC

• Non-Executive Director: Twitter, Inc.

and AT&T Inc.

• Attorney, Steptoe & Johnson

Antoine de Saint-Affrique (58)

Independent Non-Executive

Director

• Appointed: 1 January 2021

• Nationality: French

• Board skills

Key skills and experience

Antoine has a wealth of experience

intheconsumer sector, having led a

number of global brands throughout his

career. AsCEO of Danone, Antoine has

put sustainability at the heart of the

company’s strategy, setting priorities

which align purpose and performance.

While CEO of Barry Callebaut, Antoine

addressed the most pertinent challenges

in the chocolate supply chain. His

understanding of sustainability and the

consumer market makes him a valued

asset to our Board as we continue

tofocus on positively impacting the

environment and our communities.

Current appointments

• CEO and Director, Danone

• Non-Executive Director,

BarryCallebaut

Previous appointments

• CEO, Barry Callebaut

• President, Unilever Foods and

memberof the Group Executive

Committee at Unilever plc

• Non-Executive Director, Essilor

International

Corporate Governance Statement | Board of Directors

Burberry Annual Report 2023/24

Gemma Parsons

Company Secretary

• Appointed: 1 October 2018

• Nationality: British

Current appointments

• Fellow of the Chartered

Governance Institute and has

more than 26 years’ company

secretarial experience

• Member of the Chartered

Governance Institute’s

Company Secretaries’ Forum

and of the Association

ofGeneral Counsel and

Company Secretaries

oftheFTSE 100 (GC100)

Previous appointments

• Company Secretary of The

Berkeley Group Holdingsplc

• Deputy Company Secretary

of Smith & Nephew plc

• Deputy Company Secretary

ofTSB Banking Group plc

Alan Stewart (64)

Independent Non-Executive

Director

• Appointed: 1September 2022

• Nationality: British

• Board skills

Key skills and experience

Alan has extensive corporate finance

andaccounting experience gained from

a variety of industries, including retail and

leisure. He has considerable executive

leadership experience, including various

Chief Financial Officer positions within

top FTSE organisations. Alan is currently

a member of Chapter Zero, a community

of non-executive directors committed

toachieving net zero targets, and was

afounding member of the Accounting

ForSustainability CFO network. His keen

interest in sustainability is important to

the Board in driving Burberry’s climate

change strategy. Alan qualified as a

chartered accountant with Deloitte.

Current appointments

• Non-Executive Director and Chair

ofAudit Committee, Diageoplc

Previous appointments

• Non-Executive Director and Chair

ofRemuneration Committee,

ReckittBenckiser Group plc

• Non-Executive Director and

AuditCommittee Chair, Games

Workshop Group

• Chief Financial Officer, Tesco PLC

• Chief Financial Officer, Marks

&Spencer PLC

Directors whose tenure ceased

during FY2023/24:

• Matthew Key stepped down

as Non-Executive Director

andChair ofthe Audit

Committee on12 July 2023.

Burberry Annual Report 2023/24

Corporate Governance Statement | Executive Committee

Jonathan Akeroyd

Chief Executive Officer

Kate Ferry

Chief Financial Officer

Mark McClennon

Chief Information Officer

Delphine Sonder

Chief Merchandising

Officer

Nick Pope

Chief of Staff, Strategy

and Growth Projects

Edward Rash

General Counsel

Changes to the Executive Committee since FY 2022/23

• Kate Ferry joined the Committee on 17 July 2023

• Nick Pope joined the Committee on 18 September 2023

• Alexandra McCauley joined the Committee on 15 November 2023

• Ian Brimicombe was a member of the Committee until 17 July 2023

• Leonie Brantberg was a member of the Committee until 18 October 2023

• Melissa Johnston was a member of the Committee until 20 February 2024

Giorgio Belloli

Chief Digital, Customer

and Innovation Officer

Klaus Bierbrauer

Chief Supply Chain and

Industrial Officer

Gianluca Flore

Chief Commercial

Officer

Alexandra McCauley

Chief People Officer

EXECUTIVE COMMITTEE

Rod Manley

Chief Marketing Officer

100

Burberry Annual Report 2023/24

Corporate Governance Statement | Corporate Governance Report

CORPORATE GOVERNANCE REPORT

UK Corporate Governance Code compliance

The 2018 UK Corporate Governance Code (the Code) sets out the framework of governance for premium listed companies within

theUK. As a premium listed company, Burberry is subject to the Principles and Provisions of the Code, which is published by the

Financial Reporting Council (FRC) and can be found on its website: frc.org.uk. During FY 2023/24, Burberry complied in full with

theprovisions of the Code.

In January 2024, the FRC published a new version of the UK Corporate Governance Code, which will apply to Burberry from

FY2025/26, save for provision 29, which will apply from FY 2026/27. During the interim period, we will be assessing the impact

ofthe new Code on our current governance framework and any changes we may want to consider to ensure alignment.

This Corporate Governance Report provides an overview of the Board’s approach to governance and the work it has undertaken

during FY 2023/24. Details on how we have complied with the Code’s provisions and applied the Code’s principles can be found

throughout the Annual Report. Key highlights of the Company’s compliance along with cross references to other sections of the

Annual Report are detailed below.

How we apply the principles of the Code

Pages

Board leadership and company purpose

Chair’s Introduction 94

Strategic Report 2 to 92

The role of the Board 108 to 110

Purpose and culture 103 to 106

Stakeholder and workforce engagement 80 to 82

Division of responsibilities

Board composition 109, 116 and 117

Role of the Chair, Senior Independent Director, Non-Executive Directors and Company Secretary 109

Time commitment, external appointments, independence and tenure 110

Composition, succession and evaluation

Appointment to the Board and succession planning 113 to 117

Skills, experience and knowledge of the Board 113

Board diversity 116 to 117

Board evaluation 111 to 112

Audit, risk and internal control

Auditor independence and effectiveness of the audit 122 to 123

Principal and emerging risks 83 to 90

Risk management activities 83 to 90

Fair, balanced and understandable assessment 124

Viability Statement 91 to 92

Remuneration

Directors’ Remuneration Report 125 to 142

Directors’ Remuneration Policy 128

Engagement with stakeholders on remuneration 126 to 127

101

Burberry Annual Report 2023/24

Governance structure and division

ofresponsibilities

The Board (supported by its Committees) is collectively

responsible for how Burberry is directed and controlled.

Itsresponsibilities include:

• Promoting Burberry’s long-term success

• Setting its strategic aims and values

• Supporting leadership in delivering strategy

• Supervising and constructively challenging leadership on

theoperational running of the business

• Ensuring a framework of prudent and effective controls

• Reporting to shareholders on the Board’s stewardship

More information on the Company’s governance structure

canbe found on page 107.

Environmental, Social and Governance

Sustainability is an essential element of Burberry’s strategy

forwhich the Board is responsible. Accordingly, the Board is

also responsible for ensuring its approach to sustainability is

integrated into and implemented across the business, reflecting

the increasing importance of these topics to the Group and

society as a whole. The governance framework of committees

and advisory forums (as shown in the diagram on page 107)

provides regular updates and key information to the Board to

ensure that it is able to make informed decisions. Sustainability

is embedded into the remit of the committees where appropriate.

For more information on the Group’s Environmental and Social

priorities see pages 30 to 62.

Stakeholder engagement

As highlighted by the Code, the Board recognises

theimportance of identifying its key stakeholders and

understanding their perspectives and values. Through regular

dialogue and communication, the Board is mindful of all of

Burberry’s stakeholders when planning or making decisions

ofstrategic significance.

The Board has chosen to engage with the workforce through the

formally constituted Global Workforce Advisory Forum, which is

one of the methods set out in Code Provision 5. The Board uses

additional ways to understand employee views including the

Employee Engagement Survey and site visits. During the year,

the Board visited a number of stores and operations globally

and had opportunities to speak to colleagues.

Our Investor Relations team met with over 420 investors

duringthe financial year. Our Chair, Independent Non-Executive

Directors, Executive Committee and other members of senior

management met with 56 investors. This engagement included

presentations to investors and analysts following the release

ofthe Group’s quarterly, half- and full-year results (available on

the Group’s website, Burberryplc.com) and meetings with the

majority of the Group’s 20 largest investors. Topics discussed

ininvestor meetings included strategy, performance of product

changes and our sustainability agenda. The team also arranged

specific ESG engagements with investors and analysts.

At the 2023 AGM, all resolutions were passed, although the

Company received more than 20% of votes against the

re-appointment of Antoine de Saint-Affrique as a Non-Executive

Director of the Company. The Board acknowledges the outcome

of the vote and has actively engaged with significant shareholders

to understand their concerns. Further details can be found

onpage 115.

Our Investor Relations and Company Secretariat departments

act as the centre for ongoing communication with shareholders,

investors and analysts. The Board receives regular updates about

the views of the Group’s major shareholders and stakeholders

from these departments as well as via direct contact.

Further information on how the Board has engaged with its key

stakeholder groups can be found on pages 80 to 82.

Corporate Governance Statement | Corporate Governance Report

102

Burberry Annual Report 2023/24

MONITORING OUR CORPORATE CULTURE

Burberry’s purpose, Creativity Opens

Spaces, and the values that underpin it, form

the framework for how we operate and the

expectations we have of our colleagues.

During FY 2023/24, we continued to embed

Burberry’s Leadership Standards throughout

the organisation. The Board leads by

example and promotes the desired culture.

How the Board monitors culture

The Board uses a variety of mechanisms to listen to and

understand colleagues’ views. The Board has continued its

programme of interactions with Burberry colleagues, through

global site and store visits. Our Global Workforce Advisory Forum

(the Forum) continues to provide opportunities for insightful

andmeaningful discussions with colleague representatives.

TheForum brings together colleague representatives to meet

with members of the Board to discuss key topics. In FY 2023/24,

the Forum met three times and discussed reward and benefits,

sustainability, colleagues’ views and sentiment on whether

theyfeel able and comfortable to voice their thoughts and the

key things they feel inhibit Burberry delivering on operational

excellence. The Forum is chaired byour Chief People Officer with

each meeting attended by ourChair and one other Non-Executive

Director. The Forum has proportionate representation from all

areas of our business and the countries and territories in which

we operate. It provides amechanism for the Board to understand

whether the culture isembedded and aligns with Burberry’s

purpose and values.

The Board measures the progress on Burberry’s culture

bytracking against six key cultural indicators using insights

gathered through listening sessions, colleague surveys,

customer service surveys and people data on turnover, learning

and wellbeing. With the aim of supporting an inclusive culture

where colleagues can thrive, the Burberry values have been

connected to how colleagues are rewarded and recognised for

‘what they do’ and ‘how they do it’. Recognising that people

leaders play a pivotal role in our colleagues’ experience the

Leadership Standards are woven throughout the development

programmes with a focus on elevating leadership capabilities.

The Employee Engagement Survey, and data points referenced

for the culture indicators, tell us what our colleagues feel

itislike to work at Burberry. The overall sentiment from the

FY2023/24 survey and culture indicators provided a positive

response from colleagues, with good engagement, and an

increasing belief in our brand and prospects, indicating that

colleagues believe in Burberry’s purpose, are proud of the

product and services and are excited by Burberry’s future.

Fostering a thriving culture is an ongoing process and, for

FY2024/25, the Board will continue to oversee and support

efforts that drive behaviours and actions that shape a positive

culture at Burberry.

Our cultural indicators

Measure Description

Purpose Creativity Opens Spaces and guides our

interactions with each other, our customers

and communities.

Collaboration We listen, work well together and support each

other to get things done.

Learning We incorporate learning on critical topics into

our work to remain safe and secure.

Humanity We create safe environments for colleagues at

work and care about their health and wellbeing.

Execution We move quickly and reliably and create great

experiences for our customers.

Integrity We are fair and objective when dealing with

colleague behaviour and create psychological

safety for colleagues to speak up.

Corporate Governance Statement | Corporate Governance Report

103

Burberry Annual Report 2023/24

Area of focus Outcome

Strategy and Operations

• Review of regional updates

• Receive progress report on Value Chain

Excellenceprogramme

• Review of strategic progress and prioritisation of areas

offocus within the long-term strategic plan.

• Consider market trends and the implication on areas

ofstrategic focus including operational priorities,

productevolution and marketing.

• Support for operational priorities

• Approval of marketing plan

• Questioning, challenging and providing feedback

tothemanagement team and supporting the

programmesundertaken

Finance

• Approving the FY 2023/24 budget

• Review and scrutinise full and half year financial results

and trading announcements

• Review capital allocation framework

• Consider capital expenditure for flagship store offering

• Review FY 2024/25 budget scenarios and three year plan

• Review operational expenditure

• Approval of the FY 2023/24 budget and ‘in principle’ support

for the FY 2024/25 budget and three year budget forecasts

• Approval of financial statements

• Approval of £400m share buyback

• Approval of the recommendation to shareholders

topayafinal dividend of 44.5p per share

• Approval of two flagship stores

Culture and Colleagues

• Assess and monitor culture through the organisationculture

• Review progress against the Diversity, Equity and

Inclusionstrategy

• Considering the People Priorities for FY 2024/25

• Approval of senior management ethnicity target

• Support for the initiatives presented by management

Corporate Responsibility

• Discussion of the community and investment strategy

forFY 2024/25

• Review environmental targets

• Review of the Company’s Modern Slavery Statement

• Review of proposed environmental priorities further

toupdates from the Sustainability Committee

• Approval of donation of FY 2023/24 adjusted profit before

tax to social and community causes worldwide

• Approval of the Company’s Modern Slavery Statement

• Approval of environmental targets

Risk

• Consider cybersecurity risk

• Review of emerging and principal risks

• Consider the Company’s risk appetite

• Approval of tolerance levels of principal risks

• Approval of the Group’s Risk Appetite

Governance

• Review of Board evaluation planning and process

• Review of investor sentiment

• Receive feedback from the Global Workforce AdvisoryForum

• Annual review of governance related policies

• Approval of key areas of focus following board

evaluationprocess

• Approval of annual governance related policies

• Board insight and awareness of colleague sentiment through

Global Workforce Advisory Forum feedback

• Actions identified to improve the Board’s overalleffectiveness

Corporate Governance Statement | Corporate Governance Report

PRINCIPAL AREAS OF FOCUS

FOR THE BOARD DURING FY 2023/24

104

Burberry Annual Report 2023/24

Corporate Governance Statement | Corporate Governance Report

Return of capital to shareholders within

theCapital Allocation Framework

In May 2023, the Directors approved a further return of capital

to shareholders by way of a £400m buyback of shares in order

to maintain leverage within the target leverage range.

In making the decision to approve a further share buyback

programme, following the completion of a separate £400m

share buyback during FY 2022/23, the Directors took account

ofthe views of shareholders which were communicated to the

Board by way of feedback following executive management’s

meetings with institutional investors, feedback following results

presentations, investor roadshows and by advisors. When taking

the decision to approve the buyback, the Board considered the

impact on cash flow, distributable reserves and longer-term

financial stability of the business. The Board was mindful of the

commitment to deliver value to shareholders whilst balancing

the return with shareholders’ investment for long-term growth.

Sustainability strategy

Implementation of the sustainability strategy continues to be

akey focus of the Board and developments during FY 2023/24

areset out in the sections on environmental and social progress

commencing on page 30. Customers are becoming more

awareof the sustainability of our products, including source

ofmaterials and circularity, which is part of the story ofa

luxuryproduct. Shareholders expect Burberry to have sound

sustainability credentials and are looking for clarity and

transparency to support long-term viability. Our colleagues

identify with our sustainability goals and want to be part of

implementation. The importance of this to colleagues has been

highlighted by feedback presented at the Global Workforce

Advisory Forum where colleagues shared that they want to see

the sustainability strategy in action and share our journey with

customers. Burberry engages effectively with suppliers to

establish effective relationships. Communities benefit from

reduced environmental impact.

Value chain excellence programme

The Directors provided oversight of a programme which

commenced in FY 2022/23 focused on optimising the value

chain, including improving the consistency of the assortment

ofproduct across stores, management and sourcing of raw

material including reduction of waste, replenishment of product

in stores and focus on the critical path. In overseeing the

programme, the Board took into account customer satisfaction

gained both from trading performance but also feedback from

customers indicating their desire to make purchases from

thenew collection and for on-time delivery. Improvements

inoperational excellence accord with shareholder expectations

for seamless execution across the supply chain to support the

new creative direction and implementation of strategy.

KEY DECISIONS DURING FY 2023/24

As explained on page 80, the Board took the views of key stakeholders into account when making decisions

and conducting Board business. Three of the key decisions taken by the Board during FY 2023/24 are set out

below, with an explanation of the stakeholder engagement methods used and how the information gathered

from stakeholders informed the Board’s decisions.

Key stakeholders

Customers Communities

Shareholders Government

People Partners

105

Burberry Annual Report 2023/24

Corporate Governance Statement | Corporate Governance Report

Productivity

The Company continues to demonstrate and develop improving

levels of productivity, owing to strong human capital, training

and development programmes, and focus on elevating the

customer experience throughout our distribution and retail

networks. Further information about these aspects of the

business is provided on pages 19 to 21 and 48 to 57.

Other governance disclosures

The Group is committed to acting with integrity and

transparency on all tax matters and complying fully with

applicable tax laws, having regard to international standards

and guidance on tax practice and tax reporting. The Group will

only engage in responsible tax planning aligned with genuine

commercial economic activities. We will not use tax structures

or undertake artificial transactions, the sole purpose of which

isto create a contrived tax result. For example, we do not

participate in transactions with parties based in tax haven

jurisdictions when the transactions are not in the ordinary

course of Group trading business or which could be perceived

as artificially transferring value to low tax jurisdictions.

Directors’ attendance at Board and Committee meetings during FY 2023/24

This is expressed as the number of meetings attended out of the number that each Director was eligible to attend.

Board Audit Nomination Remuneration

Gerry Murphy 8/8 – 2/2 –

Jonathan Akeroyd 8/8 – – –

Kate Ferry

6/6 – – –

Orna NíChionna 8/8 – 2/2 4/4

Fabiola Arredondo 8/8 – 2/2 4/4

Alessandra Cozzani

6/6 3/3 1/1 –

Sam Fischer 8/8 – 2/2 4/4

Ron Frasch 8/8 4/4 2/2 4/4

Danuta Gray

8/8 3/3 2/2 4/4

Debra Lee

7/8 3/4 2/2 –

Antoine de Saint-Affrique 8/8 4/4 2/2 –

Alan Stewart

5 6

7/8 4/4 2/2 3/3

Matthew Key

2/2 1/1 1/1 1/1

1. Kate Ferry joined the Board on 17 July 2023.

2. Alessandra Cozzani joined the Board on 1 September 2023.

3. Danuta Gray joined the Audit Committee on 12 July 2023.

4. Debra Lee was unable to attend one Board meeting and one Audit Committee meeting due to prior business commitments.

5. Alan Stewart was unable to attend one Board meeting called at short notice as he was travelling.

6. Alan Stewart joined the Remuneration Committee on 12 July 2023.

7. Matthew Key resigned from the Board on 12 July 2023.

Wearealso committed to engaging in open and constructive

relationships with tax authorities in the territories in which

weoperate. The Group Tax strategy directs our tax planning,

reporting and compliance activities and is aligned with the

Group’s strategic objectives. Further information regarding

the Group Tax strategy is provided on Burberryplc.com.

Tax governance framework

The CFO is responsible for the Group Tax Strategy, the

effectiveness of tax risk management, tax processes and

transparency of disclosures. The Strategy is implemented by

theglobal tax and trade compliance teams with the assistance

of the finance leadership team. Compliance with the Group Tax

Strategy is reviewed on an ongoing basis as part of the regular

financial planning cycle. The Audit Committee is responsible

forreviewing the Group Tax Strategy at least once a year and

significant tax matters as they arise.

Share capital

Further information about the Company’s share capital,

including substantial shareholdings, can be found in the

Directors’ Report on page 143.

Board Meetings and Attendance

The Board held eight formal meetings during the financial year,

including an in-depth strategy session in London. If any Director

is unable to attend a meeting, they are given theopportunity

toprovide feedback on the accompanying material in advance

ofthemeeting. Details of attendance at Board and Committee

meetings can be found below.

During the year, the Board and Committee agendas were

shaped to ensure that discussion was focused on our key

strategies and responsibilities, as well as reviews of significant

issues arising during the year, such as changing macroeconomic

and geopolitical conditions. The Group’s ongoing performance

against strategic priorities is reviewed at all scheduled meetings.

The Chair and Non-Executive Directors held a closed

sessionwithout management present at each Board meeting.

Throughoutthe year, Directors spent time meeting investors

and interviewing candidates for both executive and non-executive

roles. In addition, Directors undertook store and site visits and

attended our fashion shows, town halls, brand events and

meetings of the Global Workforce Advisory Forum.

106

Burberry Annual Report 2023/24

Corporate Governance Statement | Division of Responsibilities

Governance structure at Burberry

The diagram below illustrates Burberry’s governance structure, flowing from the Board, which comprises

committees and advisory forums. Each has a defined scope, covering one or more of our key Environmental,

Social and Governance topics, and has a formalised reporting line. This structure ensures important matters are

monitored by the right people and establishes an information flow to the Board, enabling it to make informed

decisions and deliver its strategy. Further information on the role of the Board and its principal Committees

isonpage 108.

CEO Global Workforce

Advisory Forum

Nomination

Committee

Remuneration

Committee

Audit

Committee

Executive

Committee

Sustainability

Committee

Cultural Advisory

Council

Internal Diversity

and Inclusion

Council

Risk

Committee

Group Treasury

Committee

Ethics

Committee

Burberry Group plc Board

Data Privacy

Steering

Committee

Cybersecurity

Steering Group

Group Health and

Safety Committee

GOVERNANCE STRUCTURE

AND DIVISION OF RESPONSIBILITIES

Key

Decision-making

Advisory

Environmental, Social and Governance topics covered

Environment Ethics

Finance and Risk Legal/Compliance

People Communities

107

Burberry Annual Report 2023/24

Corporate Governance Statement | Division of Responsibilities

Roles and responsibilities

The Board

The Board is responsible for promoting Burberry’s long-term sustainable success. This is achieved through the establishment of an

effective governance framework, which the Board oversees, and keeping the interests of stakeholders at the fore in decision-making.

Information flows up and down the governance framework to ensure that all decision-making is well-informed, transparent and balanced.

The Board establishes the Group’s purpose and values and sets the Group’s strategy, including sustainability and climate goals,

ensuring alignment with our culture, and overseeing its implementation by management. The Board is also responsible for

oversight of the Group’s internal control and risk management, including the Group’s risk appetite.

Specific matters have been reserved for approval by the Board. Details of the key areas of focus of the Board during FY 2023/24

can be found on page 104, and a full schedule of matters reserved for the Board’s decision is available in the Corporate

Governance section of Burberryplc.com. Biographies of the members of the Board can be read on pages 95 to 99, and the

individual roles of directors and the division of responsibilities between them can be read on page 109.

The Board has established Committees to assist with exercising its authority.

Audit Committee

Chaired by Alan Stewart

Remuneration Committee

Chaired by Danuta Gray

Nomination Committee

Chaired by Gerry Murphy

Monitors the integrity of Financial

Statements, including disclosures

associated with the TCFD

recommendations, and provides

assurance to the Board that the

Group’s internal financial controls

and risk management systems are

appropriate and regularly reviewed.

Reviews the Internal Audit programme,

and oversees the work of the external

auditor, approving their remuneration

and recommending their appointment.

The Audit Committee is supported

by the Ethics Committee, the Risk

Committee and the Group Treasury

Committee.

The Audit Committee Report can be

read on pages 118 to 124.

Determines the policy for Executive

Director remuneration, aligning with

Burberry’s long-term strategic goals,

and having regard to the views of

shareholders or stakeholders. Sets

the remuneration for the Chair,

Executive Directors and senior

management.

Oversees the wider employee

reward policies.

The Directors’ Remuneration Report

can be read on pages 125 to 142.

Reviews the composition of

theBoard to ensure it remains

appropriate, so the Board is best

placed to fulfil its role. Ensures

plansare in place for the orderly

succession of both Board and senior

leadership positions. Oversees the

formal, rigorous and transparent

procedure for the appointment

ofnew Directors, keeping in mind

the importance of diversity in all its

forms and balancing skills

andexperience.

The Nomination Committee Report

can be read on pages 113 to 117.

The Committees may engage third-party consultants and independent professional advisors. They may also call upon

other Group resources to assist them in discharging their respective responsibilities. In addition to the Committee

members and the Company Secretary, external advisors and, on occasion, other Directors and members of our senior

management team attend Committee meetings at the invitation of the Chair of the relevant Committee.

The terms of reference for the Audit Committee, Remuneration Committee and Nomination Committee can be viewed

intheCorporate Governance section of Burberryplc.com.

CEO

The Board delegates the day-to-day responsibility for running the Group to the CEO, who is responsible for all commercial,

operational, risk and financial elements of the business. The CEO is also responsible for management and development of the

strategic direction of the Group, for consideration and approval by the Board.

Executive Committee

The Executive Committee assists the CEO in implementing the strategy as approved by the Board. Executive Committee members

are invited, as appropriate, to Board, Board Committee and strategy meetings to inform and update the Board on their areas

ofresponsibility.

108

Burberry Annual Report 2023/24

Board roles and the division

ofresponsibilities

Our Board currently comprises 12 members: the Chair, the CEO,

the CFO and nine independent Non-Executive Directors who

areexperienced and influential individuals, drawn from a wide

range of industries and backgrounds with the skills to promote

the long-term sustainable success of the Group. The Board has

determined that all Non-Executive Directors are independent

and the Chair was also considered to be independent

onappointment.

Directors’ biographies, tenures, key skills and experience and

external appointments are set out on pages 95 to 99.

All Directors are appointed to the Board for an initial fixed

three-year term, subject to annual re-election by shareholders

at the Company’s AGM. In accordance with the Code, all

Directors, with the exception of Debra Lee, will retire and offer

themselves for re-election at the 2024 AGM. Kate Ferry and

Alessandra Cozzani, who joined the Board on 17 July 2023 and

1 September 2023 respectively, will offer themselves for election

having joined the Board since the last AGM. Debra Lee will

cease to be a Non-Executive Director following the 2024 AGM.

To ensure the Board performs effectively, there is a clear

division of responsibilities between the leadership of the Board

and the executive leadership. The roles of the Chair, CEO and

Senior Independent Director are agreed by the Board and

areavailable to view in the Corporate Governance section

ofBurberryplc.com.

Our Chair

• Responsible for the Board’s overall effectiveness

indirectingBurberry

• Chairing Board meetings, Nomination Committee meetings

and the AGM, setting the Board agenda, and ensuring

Directors receive accurate, timely and clear information

• Ensuring there is effective communication between

theBoard, management, shareholders and the Group’s

widerstakeholders

• Promoting a culture of openness and constructive

debate,and facilitating effective contribution of all

Non-ExecutiveDirectors

• Overseeing the annual Board performance review and

addressing any subsequent actions

• Promoting the highest standards of corporate governance

• Ensuring the views of stakeholders are taken into account

when making decisions

Our Senior Independent Director

• Acting as a sounding board for the Chair

• Acting as an intermediary for the other Directors,

wherenecessary

• Chairing meetings in the absence of the Chair

• Being available to shareholders and stakeholders if they

haveany concerns which they have been unable to resolve

through normal channels

• Together with the Non-Executive Directors, assessing

theperformance of the Chair on an annual basis

• Leading the search and appointment process and

recommendation to the Board of a new Chair, if necessary

Our Non-Executive Directors

• Providing effective and constructive challenge to the Board

and scrutinising the performance of management against

agreed performance objectives

• Leading the appointment process for Executive Directors

• Assisting in the development and approval of the

Group’sstrategy

• Reviewing Group financial information and ensuring there

areeffective systems of governance, risk management

andinternal controls in place

• Ensuring there is regular, open and constructive dialogue

withshareholders

• Offering specialist knowledge to the Board

Our CEO

• Day-to-day management of the Group and leading the

Executive Committee

• Responsible for all commercial, operational, risk and financial

elements of the Group

• Developing the Group’s strategic direction and implementing

the agreed strategy, as approved by the Board

• Ensuring effective communication and information flows

tothe Board and the Chair

• Representing the Group to external stakeholders

• Responsible for the oversight of the following key functions:

Design, Marketing, Digital, Merchandising, Supply Chain,

Corporate Affairs, Human Resources, Strategy, Global

Commercial, Corporate Responsibility, Corporate

Communications and IT

• Responsible for oversight of Burberry’s sustainability agenda

and climate goals

Our CFO

• Supporting the CEO in developing the Group’s strategy

andits implementation

• Overseeing the global Finance and Business

Servicesfunctions and developing the Group’s Capital

Allocation Framework

• Responsible for establishing financial planning and

maintaining adequate internal controls over financial reporting

• Representing the Group to external stakeholders

• Responsible for the oversight of the following key functions:

Investor Relations, Internal Audit and Risk Management,

Business Continuity, Burberry Business Services, Finance,

Insurance, Tax, Treasury and Trade Compliance

Our Company Secretary

• Providing advice and support to the Chair and all Directors

• Ensuring the Board receives high-quality information and

resources in a timely manner so that the Board can operate

effectively at meetings and carry out its duties

• Assisting the Chair and Committee Chairs in setting the

agenda for Board and Committee meetings

• Advising and keeping the Board up to date with all matters

ofcorporate governance through regular papers and

updatesat meetings

• Facilitating the induction programme for new Directors and,

together with the Chair, assessing ongoing training needs

forall Directors

109

Burberry Annual Report 2023/24

Corporate Governance Statement | Division of Responsibilities

Time allocation

Executive Directors

Our Board’s Executive Directors are permitted to hold one

external non-executive directorship. Jonathan Akeroyd does not

hold any other external directorships. Kate Ferry is an independent

non-executive director of Greggs plc.

Non-Executive Directors

Each of our Non-Executive Directors has a letter of appointment

which sets out the terms and conditions of their directorship.

TheNon-Executive Directors are expected to devote the time

necessary to perform their duties properly. This is expected to

be approximately 20 days each year for basic duties. The Chair

and Senior Independent Director are expected to spend additional

time over and above this to carry out the extra responsibilities

their roles entail. A summary of these roles canbe found on

page 109 and full descriptions can be found inthe Corporate

Governance section of the Group’s website, Burberryplc.com.

The Board has noted changes to Non-Executive Directors’

external appointments during the year and confirms that they

were not perceived to impact their responsibilities to the

Company. In particular, the Board reviewed and approved in

advance Gerry Murphy’s appointment as a Non-Executive Director

and Chair of Tesco plc. In making this decision, the Board was

satisfied that Gerry would be able to continue to devote the

necessary time for the proper performance of his duties as

Chair of Burberry. The Board also noted that Gerry would step

down as Chair of Tate & Lyle plc, as he has since done.

The Board also considered Danuta Gray’s appointment as

aNon-Executive Director and Chair of Croda International plc

andwas content that she would continue to have sufficient time

to undertake her role at Burberry.

The Board considers that the Chair and all Non-Executive

Directors have fulfilled their required time commitment during

FY 2023/24. In making this assessment the Board considered

the views of certain shareholders regarding Antoine de

Saint-Affrique’s time commitments, further details of which can

be found in the Nomination Committee Report on page 115.

Independence of Non-Executive Directors

Each year, in accordance with its terms of reference, the

Nomination Committee reviews the independence of the

Non-Executive Directors (excluding the Chair), taking into

account a range of factors, including those set out in Provision

10 of the UK Corporate Governance Code.

As part of their deliberations for FY 2023/24, the Nomination

Committee gave particular regard to Fabiola Arredondo who

was appointed to the Board in March 2015 and has therefore

served on the Board for just over nine years. Following the

review, the Nomination Committee concluded that Fabiola’s

independence was not compromised and that all Non-Executive

Directors continue to be independent.

Please see page 115 for further information on the independence

assessment performed by the Nomination Committee.

Induction and training

The Company Secretary assists the Chair in designing and

facilitating a formal induction programme for new Directors and

their ongoing training. Each newly appointed Director receives

aformal and tailored induction programme to enable them to

function effectively as quickly as possible, while building a deep

understanding of the business. Each induction typically consists

of meetings with both Executive and Non-Executive Directors

and briefings from senior managers across our key business

areas and operations. In addition, Non-Executive Directors are

provided with opportunities to visit key stores, markets and

facilities. This includes visits to our various operating facilities

inthe UK and in their country or territory of residence.

Following the initial induction for Non-Executive Directors, an

understanding of the business is developed through ongoing

meetings and engagements as appropriate. Details of the

induction programmes implemented for Kate Ferry and

Alessandra Cozzani are set out in the Nomination Committee

Report on page 116.

The Chair considers the training needs of individual Directors

onan ongoing basis, and the Board has direct access to the

advice and services of the Company Secretary. To carry out

their duties, Directors may also obtain independent professional

advice, if necessary, at the Group’s expense. To further support

the Board’s ongoing training, at the March 2024 Board meeting,

theCompany’s external legal advisors delivered a legal and

governance update focusing on the Corporate Governance

andListing regime reforms and the Economic Crime and

Corporate Transparency Act 2023.

Managing conflicts of interest

All Directors have a duty under the Companies Act 2006 to

avoid a situation in which they have, or could have, a direct or

indirect conflict of interest or possible conflict of interest with

the Company and/or the Group.

Under the Company’s Articles of Association, the Board has

theauthority to approve situational conflicts of interest. It has

adopted procedures to manage and, where appropriate,

approve such conflicts.

Authorisations granted by the Board are recorded by the

Company Secretary in a register and are noted by the Board at

its next meeting. A review of situational conflicts that have been

authorised is undertaken by the Board annually.

Following the last review, the Board concluded that the

potentialconflicts had been appropriately authorised, that no

circumstances existed which would necessitate that any prior

authorisation be revoked or amended and that the authorisation

process continued to operate effectively.

110

Burberry Annual Report 2023/24

Corporate Governance Statement | Composition, Succession and Evaluation

COMPOSITION, SUCCESSION

ANDEVALUATION

Board evaluation

Evaluating our performance

The Board undertakes a formal annual review of its

effectiveness, which is designed to help identify opportunities

to improve and enhance its own performance and that of the

Group. The evaluation process is led by the Chair and includes

areview of the effectiveness of the Board as a whole, the

Board’s committees and each individual Director. Every three

years the review is facilitated externally.

For FY 2023/24, the Board decided to conduct an externally

facilitated effectiveness review undertaken by Milena Djurdjevic

of CalibroConsult. CalibroConsult is an independent Board

consultant and does not provide any other services to the

Group. During the course of her review, Ms Djurdjevic

interviewed the Chair, committee chairs, Executive and

Non-Executive Directors, the Company Secretary, members

ofthe Executive Committee and the external advisor to the

Remuneration Committee and the Company’s Auditor.

Theprocess also included attending a number of Board and

Committee meetings, both in person and virtually, in order to

observe meeting dynamics and reviewing the papers prepared

for the Board’s consideration.

Milena Djurdjevic sought views on a range of topics including

the effectiveness of Board composition and culture, the

relationships between the Board and executive team,

implementation and oversight of the strategic objectives

andprogress against the agreed areas of focus following the

FY2022/23 effectiveness review. The results were evaluated

and discussed at the March Board meeting, following which the

Board confirmed its view that the Board continues to operate

effectively within an inclusive and transparent environment.

A number of strengths were identified through the review

process, including:

• The Board is well run and highly effective, meetings are

inclusive and debate is open and free-flowing

• Non-Executive Directors are highly engaged and

supportiveof management.

• Board composition is considered to be diverse and

well-suited to helping management achieve its strategic

andbroader stakeholder objectives

• There is strong leadership of the Board and Board committees

enabling the Board to successfully maintain its effectiveness

despite there being a number of Board level changes

duringthe year

• The Board appreciates the CEO’s transparency which enables

the Board to better contribute to discussions

The review also identified certain areas for development and

action which have been agreed by the Board and are set out

below. Progress against these areas of focus will be monitored

during the year.

The evaluation process also concluded that the Audit,

Nomination and Remuneration committees continue to operate

well and to provide effective support to the Board in carrying

out its duties. Further information about the effectiveness

evaluations of each of the Committees and of individual

Directors conducted during the year can be found on pages

115,118, and 127.

Separate to the formal Board effectiveness review process, the

Senior Independent Director held a meeting of the Non-Executive

Directors, without the Chair being present, to review his

performance during the year. The unanimous view is that Gerry

Murphy continues to be highly effective and has continued to

provide strong leadership throughout FY 2023/24.

Areas of focus for FY 2024/25

Based on the feedback received during the assessment process, the Board agreed on the following areas of focus, which will be

monitored during the year.

Area for development Action

Strategy and operations The Board and management team will work together to refine the key strategic priorities and

determine a definitive plan and timetable for their implementation. Clear operational milestones

andKPIs will be agreed in order to measure progress and enable effective oversight of

strategyimplementation.

Develop a clear action plan to deliver growth in Burberry’s e-commerce business together with

key metrics which enable progress to be measured.

People and resources Ensure the organisation structure, roles, responsibility and accountability are clear and

configured tosupport strategy execution.

Ongoing focus on the talent agenda including leadership team succession and development.

TheBoard will also welcome opportunities for Non-Executive Directors to engage with

management on a more informal basis.

Board ways of working Revisit Board agendas and papers to ensure sufficient focus on key strategic pillars and areas

where Board input will help drive the business forward.

111

Burberry Annual Report 2023/24

Progress update on focus areas identified following FY 2022/23 Board effectiveness review

Area for development Action

Strategy, purpose and values

• Ongoing development of Board agendas

to ensure sufficient focus on big trends

including sustainability, e-commerce

andglobalisation

The Board receives regular scheduled updates on Sustainability and

e-commerce performance has been discussed in the CEO report for each

meeting in FY 2023/24 to date.

In addition, the agenda for annual strategy meetings in October 2023 included

updates on raw material innovation and e-commerce strategy. The Board also

had the opportunity to discuss consumer and technology trends with a panel

ofindustry experts. Topics included market dynamics in the luxury industry,

changing consumer expectations and the implications for Burberry.

• Consider ways to develop the Board’s

understanding of the opportunities and

risks presented by emerging technology

in the luxury industry

In October 2023, the Board received an update on the latest developments

forGenAI and its applications for the fashion industry.

People and culture

• Continued focus on developing the

long-term approach to executive

succession planning including increased

opportunities for Board members to

engage with colleagues informally

As part of the succession planning process, a programme has been developed to

bring Board members close to high potential and key talent across the business.

As part of this, individual Board members were connected with colleagues with

whom there was a natural fit in terms of skills and expertise.

Board members are also encouraged to meet those colleagues identified as key

talent when travelling around the business.

• Enhance the Board’s oversight of culture

and values, including how well they are

embedded across the business

See page 103 for information on the Board’s oversight of culture.

The Board attended a Purpose workshop to discuss bringing together Burberry’s

strategy, culture and sustainability ambitions. In November 2023, the Board

received an update following the annual Employee Engagement Survey covering

insights and areas of company-wide focus in response to the feedback received.

Board composition

• Review the size and composition of

theBoard including the potential use

ofadvisory support to supplement core

skills of Board members where necessary

In September 2023, the Board appointed Alessandra Cozzani to enhance

theluxury and finance expertise on the Board.

A full review of Board composition and succession planning was undertaken

aspart of the external Board performance review for FY 2023/24. Further

information isonpage 113.

Corporate Governance Statement | Composition, Succession and Evaluation

112

Burberry Annual Report 2023/24

Corporate Governance Statement | Report of the Nomination Committee

REPORT OF THE

NOMINATION COMMITTEE

Dear Shareholder,

On behalf of the Nomination Committee, I am pleased to

present this report which describes how we carried out our

responsibilities during the year.

Board succession planning and composition continues to be an

important area of focus for the Committee. During FY 2023/24,

the Committee recommended the appointment of Alessandra

Cozzani as an additional independent Non-Executive Director.

Matthew Key retired from the Board in July 2023 and, having

announced Kate Ferry’s appointment in March 2023, the Board

also welcomed Kate Ferry who joined the Board as Chief Financial

Officer in July. In our consideration of Board composition, we

concentrated on identifying candidates who would add to the

Board’s collective skills, experience and diversity. Our aim is

toensure the Board is capable of supporting and challenging

management in the execution of Burberry’s strategy and to

promote Burberry’s long-term growth.

During the financial year, we reviewed the talent pipeline for

theExecutive Committee and other senior management roles.

We also completed our annual governance processes.

As announced on 12 April 2024, Debra Lee, Independent

Non-Executive Director, will retire from the Board with effect

from the conclusion of the Company’s Annual General Meeting

on 16 July 2024.

Board and Committee composition

The Committee is responsible for keeping the structure, size

and composition of the Board and its Committees under review.

During FY 2023/24, the Committee oversaw the search and

appointment of Alessandra Cozzani as a Non-Executive Director

and member of the Audit and Nomination Committees on

1 September 2023. Alessandra is a highly experienced Chief

Financial Officer with a profound understanding of luxury

fashion and we are delighted that she has joined the Burberry

Board. More information on the appointment and search

process can be found on page 186.

“The Committee

operates effectively

and has taken a

rigorous approach

toBoard succession

and recruitment

throughout the year”

Areas of focus for FY 2023/24

• Board composition

• Recruitment of new Non-Executive Director

• Talent and executive succession planning

• Annual review of corporate governance

requirements

Gerry Murphy

Chair, Nomination Committee

In July 2023, the Committee recommended the appointment

ofDanuta Gray as a member of the Audit Committee and

AlanStewart was appointed as a member of the Remuneration

Committee on the same day.

The Nomination Committee has performed its annual review

ofDirectors’ time commitments and independence on behalf

ofthe Board. Further information is included within this

reporton pages 114 to 115 including the steps we have taken to

understand the views of shareholders who voted against the

re-election of Antoine de Saint-Affrique at the 2023 AGM, the

introduction of a new policy on Directors’ time commitments and

the rigorous assessment of Fabiola Arredondo’s independence

in light of the fact that she has now served on the Board for just

over nine years.

Committee Effectiveness

The Committee’s annual performance and effectiveness review

was undertaken as part of the externally facilitated Board

effectiveness review. The review confirmed that the Committee

operates effectively and has taken a rigorous approach

toboardsuccession and recruitment throughout the year.

Furtherinformation on the review process is set out on page 111.

Gerry Murphy

Chair, Nomination Committee

113

Burberry Annual Report 2023/24

Corporate Governance Statement | Report of the Nomination Committee

Principal role and responsibilities

As set out in the terms of reference, which are available on the

Company’s website, Burberryplc.com, the Nomination Committee

is responsible for a number of areas across three main categories

as listed below. The Committee reviews its terms of reference

annually to ensure they remain fit for purpose.

Board composition

• Reviewing the structure, size and composition of the Board

and its Committees to maintain the relevant balance of skills,

knowledge, experience, diversity and independence

• Identifying and making recommendations to the Board

onsuitable candidates to fill Board vacancies

Board and executive succession planning

• Developing succession plans to ensure Board membership

isrefreshed to meet the needs of the Company

• Overseeing the development of a diverse succession pipeline

for the Executive Committee and other key senior management

roles, in line with the talent management framework

Corporate governance

• Considering the independence and time commitments

ofNon-Executive Directors

• Making recommendations to the Board on election and

re-election of Directors at the AGM

• Reviewing the Board Composition and Diversity Principles

toensure they remain fit for purpose

Our proactive approach to succession planning ensures that the

Board maintains the right mix of skills, experience, knowledge

and tenure to effectively support and challenge. We believe that

diverse boards with appropriate competencies and values are

better boards. In line with the Board Composition and Diversity

Principles, all new Board appointments will continue to be

madeon merit and objective criteria. Our approach includes:

• Ensuring the search pool includes candidates from diverse

backgrounds with experience and insights relevant to the

Group’s strategic priorities.

• Taking into account Burberry’s purpose, culture and values,

aswell as changing business needs, while also having regard

to wider stakeholder requirements and environmental factors

• Promoting diversity, inclusion and equal opportunity. Our aim

is to ensure that at least 40% of the Board is female

Following appointments made during FY 2023/24, there is a

good balance between recently appointed Directors and those

who have served for longer periods on Burberry’s Board.

Directors’ time commitments

The Nomination Committee conducts an annual review of the

time required by Non-Executive Directors to fulfil their duties.

Italso assesses through performance evaluation if the time they

spend executing their roles is adequate.

Policy on Directors’ time commitments

During the year, the Committee introduced a policy on

Directors’ time commitments. It stipulates that Non-Executive

Directors will be expected to hold no more than four non-

executive directorships in public companies, including Burberry,

at any one time. Executive Directors should not undertake more

than one non-executive directorship of a FTSE 100 company or

any other significant appointment. The Board may exceptionally

approve non-compliance with this policy where compelling

andexceptional circumstances exist and the Board agrees this

ismerited in order for the Board to benefit from the individual

Director’s continuing appointment.

Directors are required to seek prior approval before taking

onany significant additional appointments and the Chair

undertakes this pre-approval on behalf of the Board. Specific

appointments may be brought to the full Board if the Chair

considers it necessary to do so. See page 110 for further

information on additional appointments during FY 2023/24.

The terms of appointment of the Non-Executive Directors

require that they should allocate sufficient time to meet the

expectations of their role. The Committee considered the

expected time commitment of the Chair and the Non-Executive

Directors, taking into account attendance at Board and Committee

meetings, as well as engagements outside of formally scheduled

Board and Committee meetings, and considered whether the

Nomination Committee membership and meeting attendance during the year

Committee member Member since Meeting attendance

Gerry Murphy (Chair) 17 May 2018 2/2

Fabiola Arredondo 10 March 2015 2/2

Alessandra Cozzani

1 September 2023 1/1

Sam Fischer 1 November 2019 2/2

Ron Frasch 1 September 2017 2/2

Danuta Gray 1 December 2021 2/2

Matthew Key

26 September 2013 1/1

Debra Lee 1 October 2019 2/2

Orna NíChionna 3 January 2018 2/2

Antoine de Saint-Affrique 1 January 2021 2/2

Alan Stewart 1 September 2022 2/2

1. Alessandra Cozzani joined the Committee on 1 September 2023 on her appointment as a Non-Executive Director.

2. Matthew Key resigned from the Committee on 12 July 2023 on his resignation from the Board.

114

Burberry Annual Report 2023/24

Non-Executive Directors had met the requirement. The Committee

also considered the external appointments of the Non-Executive

Directors and reviewed the register of Directors’ conflicts.

TheBoard is satisfied that all Directors continue to make

effective and valuable contributions to the Board and continue

to devote sufficient time to discharging their responsibilities

asdirectors of Burberry.

Update on Antoine de Saint-Affrique’s

timecommitment

At Burberry’s AGM in 2023, as in the prior year, some

shareholders expressed concerns about the number of Antoine

de Saint-Affrique’s other listed directorships and the potential

impact on his time commitment to Burberry. We have contacted

major shareholders who voted against Antoine’s re-election

tounderstand their views. The Chair of the Board has had

discussions with certain shareholders and explained that Antoine

has brought, and continues to bring, considerable business

andmanagement experience and exceptional knowledge of

sustainability and global consumer markets to Board discussions.

The Chair reviews each Non-Executive Director’s effectiveness

each year and, when considering Antoine’s performance,

specifically considered his ability to carry out his duties as a

Director given his other directorships. As reported on page 111,

an externally facilitated review of the Board’s performance took

place in FY 2023/24 and no concerns regarding Antoine’s ability

to devote time to his role at Burberry were raised.

Antoine’s attendance record has been exemplary: in FY 2022/23

and FY 2023/24, he attended 100% of the Board and Committee

meetings. He also attended the AGM and additional Board

callsand meetings during the year when required. In addition,

Antoine has participated in a number of additional opportunities

to meet colleagues and engage with other stakeholders

throughout the year. The Board considers that Antoine’s

attendance record further demonstrates his capacity to fulfil

hisobligations in each of his roles, even during exceptionally

demanding periods.

Antoine has spent his working life in large international

companies with globally renowned consumer brands. He is a

world-class Director and his wealth of knowledge and experience

would be hard to replace. Burberry’s experience of Antoine as

acommitted and engaged Director has been very positive, not

least in the areas of executive and global brand management,

sustainability and deep operational experience in our key

markets in Asia, Europe and North America.

In summary, the Board continues to believe that Antoine has

thecapacity to devote sufficient time to effectively discharge

his duties. He is a committed and engaged Director whose

skillsand experience enable him to bring aparticularly

valuableperspective to Board matters and he has consistently

demonstrated his ability to fulfil his obligations asaDirector,

including during exceptionally demanding periods. As an

executive of the highest calibre, we feel it would not be in the

best interests ofthe Company to deprive Burberry of Antoine’s

services. The Board will continue to monitor this position closely

and, should circumstances change, the Chair would take

appropriate action.

The Board, through the Nomination Committee, has therefore

determined that Antoine has sufficient time to meet his Board

responsibilities as required by Principle H of the UK Corporate

Governance Code and has decided to make an exception

tothenumber of roles which can be held by Non-Executive

Directors set out in the policy on Directors’ Time Commitments.

Thisposition will be kept under review and will be assessed

andconfirmed each year.

Directors’ independence

The Committee conducts an annual review of the independence

of the Non-Executive Directors on behalf of the Board. TheUK

Corporate Governance Code requires the Board to state its

reasons for concluding that a Director is independent

notwithstanding the existence of certain circumstances

whichare likely to impair or appear to impair that Director’s

independence. Provision 10 of the Code provides a non-exhaustive

list of such circumstances which should beconsidered,

including length of service.

As part of its annual review of the independence of the

Non-Executive Directors, the Committee paid particular regard

to the independence of Fabiola Arredondo who was appointed

to the Board on 15 March 2015 and has therefore served as

aDirector for just over nine years. When evaluating Fabiola’s

independence, the Committee assessed the degree of

objectivejudgement and challenge she demonstrated during

meetings. Itconcluded that she continues to make high-quality

contributions to the Board and in Committee meetings, providing

effective and constructive challenge to management, and

demonstrating objective and independent judgement. Onthe

basis of its rigorous assessment, the Committee determined

that Fabiola remains independent. The Committee also

considered the skills and experience that Fabiola brings to the

Board and determined that her continued presence on theBoard

is in the best interests of the Company at this time.

All Directors, with the exception of Debra Lee, will seek election

or re-election at the 2024 AGM.

Board and Committee effectiveness

As part of the annual Board evaluation, all members of the

Nomination Committee participated in an evaluation of the

Committee’s performance. The evaluation concluded that the

Committee operates well and continues to provide effective

support to the Board. Further details of the evaluation can

befound on pages 179 to 181.

Senior management talent and

successionplanning

The Committee monitored changes to the talent landscape

during the year and reviewed the talent pipelines for the

Executive Committee and other key leadership roles. When

considering the succession plans, the Committee reviewed

progress in increasing diversity of gender and ethnicity,

considered the core capabilities required to deliver the Group’s

strategic priorities and agreed plans to provide opportunities

for Board members to meet key senior executives in order

todeepen relationships and support engagement.

During FY 2023/24, the CEO provided regular updates to

theBoard and Board Committees to keep them informed

ofchanges to senior leadership and the composition of the

Executive Committee. TheCommittee supports the CEO in

hiring the right talent tostrengthen brand capabilities and

drivebusiness growth.

115

Burberry Annual Report 2023/24

Corporate Governance Statement | Report of the Nomination Committee

A review of Kate Ferry’s induction

Following the appointment of Kate Ferry in July 2023,

a detailed induction plan was created for Kate focused

on building her understanding of our purpose and

values and providing opportunities for product

immersion, meeting colleagues and travelling to

Burberry stores and manufacturing sites around the

world to meet and connect with the wider workforce.

The induction sessions gave Kate the opportunity to

get to know the business and build an understanding

of the key areas of focus for the Board and the Group.

The induction programme was complemented by

meetings with key external stakeholders, enabling

Kate to further deepen her business insights.

Herinduction programme included:

• Product immersion

• Visiting key stores and manufacturing sites

• Meeting with the Executive Committee, Regional

leads, Vice Presidents and the leadership team to

establish connections, raise visibility and deepen

business insights, with a view to identifying

prioritiesin relation to financing the business

andfinancialperformance

• Meeting with external stakeholders to further

deepen business insights

• Meeting with the external auditor and intense

familiarisation with Burberry finance processes,

internal controls and auditing and accounting

policies and procedures

Alessandra Cozzani’s induction

Following her appointment in September 2023, Alessandra

undertook induction sessions to provide her with an understanding

of Burberry’s business with special focus on purpose and

values, strategy and wider business objectives. The Company

Secretary assisted the Chair with the preparation and delivery

of a tailored and comprehensive induction programme, designed

to give Alessandra the opportunity to familiarise herself with

thebusiness and build an understanding of key areas of focus

for the Board and the Group. Alessandra had meetings with

individual Board members, including the Senior Independent

Director and the Chair of the Audit Committee and meetings

with Company advisors. The induction programme was also

complemented by the Board’s extended strategy sessions,

which took place shortly after Alessandra’s appointment and

included in-depth presentations on aspects ofthe business.

Board diversity

Burberry holds diversity, equity and inclusion at the core of

ourpeople strategy and our culture. The Committee considers

the importance of diversity when recommending candidates

forappointment to the Board. In accordance with the Board

Composition and Diversity Principles, we are committed to

ensuring women make up at least 40% of our Board and that at

least one Board member is from an ethnic minority background,

while continuing to ensure candidates are selected based

ontheir merit and wide-ranging experience, background,

knowledge, insights and skills. With the current Board

composition, these objectives have been exceeded.

As required by the Listing Rules, Burberry has reported on the

diversity targets introduced by the Financial Conduct Authority

in 2022 (see the table on page 117). We first reported these

targets in our Annual Report 2022/23. We are delighted to have

been recognised as being a top performer in the FTSE Women

Leaders report, having again exceeded its recommendations.

Atthe date of their report, women accounted for 50% of Board

members and 55% of Executive Committee members and their

direct reports. We are also pleased to have exceeded the Parker

Review Committee’s target for all FTSE 100 boards to have at

least one director from an ethnic minority background. During

the year, the Board approved a new target to have 15% ofsenior

management in the UK to come from ethnic minority

backgrounds by December 2027.

Board changes

The composition of the Board and its Committees continued

tobe a key area of focus for the Committee during FY 2023/24.

Through the appointment of Alessandra Cozzani as a Non-

Executive Director in September 2023, the Board has added

deep insight into luxury fashion as well as strengthening its

knowledge and experience of operational finance.

Non-Executive Director appointment

To assist with the recruitment of a new Non-Executive Director,

the Committee appointed search firm Egon Zehnder which

hasno connection to the Company or individual Directors.

Acandidate profile was developed in line with the Board

Composition and Diversity Principles, which would complement

the needs of the business and the Board as a whole. Egon

Zehnder was engaged by the Company during FY 2023/24

toprovide some additional HR services.

Having considered the shortlist, Committee members

interviewed the preferred candidates and recommended the

appointment of Alessandra Cozzani to the Board for approval.

The Committee further recommended that, on appointment to

the Board, she be appointed as a member of the Audit and

Nomination Committees.

The appointment involved a formal, rigorous and transparent

selection process based on merit and objective criteria, with

due consideration being given to a broad range of factors, such

as diversity of gender, social and ethnic backgrounds, cognitive

and personal strengths and the Group’s future strategic direction.

The majority of Board members met Alessandra during the

selection process.

Gender

Women Men

246

Tenure

0 – 3 years 3 – 6 years 6+ years

41 1 1 2 3

Nationality

Australian

Irish

French

American

Italian

British

Diversified Board

116

Burberry Annual Report 2023/24

Disclosures required under Listing Rule 9.8.6 as at 30 March 2024

The Financial Conduct Authority introduced a new Listing Rule on diversity and inclusion disclosures applying to financial periods

commencing on or after 1 April 2022. As at 30 March 2024 (being the reference date selected by the Board for the purposes

ofthisdisclosure), the Company complied with the regulatory targets set out in Listing Rule 9.8.6 R (9), as women made up 50.0%

oftheBoard, both the Senior Independent Director and the CFO were women, and the Board had two Directors from an ethnic

minority background.

We have provided this information in the reporting tables for the Board and Executive Committee below.

Reporting on gender identity or sex

Number of

Boardmembers

Percentage of

theBoard

Number of senior

positions on the

Board (CEO, CFO,

SID and Chair)

Number

inexecutive

management

Percentage

ofexecutive

management

Men 6 50.0 2 8 72.7

Women 6 50.0 2 3 27.3

Not specified/prefer not to say – – – – –

Reporting on ethnic background

Number of

Boardmembers

Percentage of

theBoard

Number of senior

positions on the

Board (CEO, CFO,

SID and Chair)

Number

inexecutive

management

Percentage

ofexecutive

management

White British or other White (including minority-white

groups) 10 83.4 3 9 81.8

Mixed/Multiple Ethnic Groups – – – – –

Asian/Asian British 1 8.3 1 1 9.1

Black/African/Caribbean/Black British 1 8.3 – – –

Other ethnic group, including Arab – – – 1 9.1

Not specified/prefer not to say – – – – –

The data was collected by asking each member of the Board and Executive Committee to indicate their gender and ethnicity

according to the categories presented in the table.

Operational excellence

83%

Luxury brands

25%

Digital and media

100%

Environment / sustainability

58%

Retail, sales and marketing

41%

Financial expertise

25%

Board skills

We recognise that having the right individuals in the boardroom

is critical. Directors need to have skills and experience that

align with the Company’s long-term strategy. Diverse and fresh

perspectives are also important, which is why the Committee

makes refreshment and succession planning a priority. A Board

skills matrix is used to identify current and expected skill gaps.

In addition, the identification of skills gaps on the Board was

informed by the output from the externally facilitated Board

effectiveness review reported in more detail on page 111.

117

Burberry Annual Report 2023/24

Corporate Governance Statement | Audit, Risk and Internal Control

REPORT OF THE

AUDIT COMMITTEE

Dear Shareholder,

I am pleased to present the FY 2023/24 report of the Audit

Committee. The purpose of this report is to describe how the

Committee carried out its responsibilities during the year.

Composition

There have been a number of changes to Committee

membership during the year. Matthew Key stepped down as

Chair of the Committee following his retirement from the Board

on 12 July 2023. I succeeded Matthew Key as Chair of the

Committee on the same day. Matthew chaired the Committee

for three years and I would like to take this opportunity to thank

him for his leadership of the Committee during this time. Danuta

Gray was appointed as a member of the Committee on 12 July

2023, and Alessandra Cozzani joined the Committee on her

appointment to the Board on 1 September 2023. All of the

Committee members have the appropriate knowledge, skills

and experience to fulfil the duties delegated to the Committee.

Areas of focus for FY 2023/24

The primary role of the Audit Committee is to monitor and

review the integrity of financial information and to provide

assurance to the Board that the Group’s internal controls

andrisk management processes are appropriate and regularly

reviewed. We also oversee the work of the external auditor,

approve its remuneration and recommend its appointment.

Details of how the Audit Committee has monitored EY’s

auditare available on page 122. In addition to the disclosure

requirements relating to audit committees under theCode, this

report sets out areas of particular focus for the Committee.

This year, we have focused on reviewing accounting judgements

relating toinventory provisioning and store impairments and

management’s assessment of uncertain tax positions.

The Committee reviewed and challenged management’s approach,

analysis and recommendations, taking into account input from

the external auditor, in order to assess the appropriateness of

the treatment in the Financial Statements. All matters reviewed

were concluded to the satisfaction of the Committee.

Further information on how the Audit Committee addressed

significant matters during the year is set out in the table

onpages 120 and 121.

“The Committee

fulfils its purpose,

iswell informed and

challenges where

appropriate.”

Areas of focus for FY 2023/24

• Cybersecurity

• Financial reporting estimates and judgements

• Process controls and regulatory changes

Alan Stewart

Chair, Audit Committee

In relation to the Group’s risk management, we carried out a

detailed review of management’s assessment of principal risks,

tolerance levels and mitigations, and concluded these were

appropriate. We reviewed management’s preparations for the

new CSRD regulations, and concluded the approach was

appropriate. We also considered the risks associated with

cybersecurity, including ransomware, and reviewed the revised

supply chain risk profile.

The Committee confirms that during FY 2023/24, the Group

complied with the mandatory audit processes and Audit

Committee responsibility provisions of the Competition

andMarkets Authority Statutory Audit Services Order 2014.

Thisreport describes the work of the Committee in discharging

its responsibilities.

Committee Effectiveness

The Committee’s annual effectiveness review was undertaken

as part of the externally facilitated Board effectiveness review,

and I am pleased to note that the review confirmed that the

Committee fulfils its purpose well, is well informed, and

challenges where appropriate. Further information on the

process is set out on page 111.

The Committee has an open and constructive relationship with

management. I thank the management team on behalf of the

Committee for its assistance during the year. I am confident

thatthe Committee has carried out its duties effectively and

toahigh standard during the year.

Alan Stewart

Chair, Audit Committee

118

Burberry Annual Report 2023/24

The role and main responsibilities

oftheCommittee

The main role and responsibilities of the Committee are set

outin written terms of reference, which are available on the

Company’s website, Burberryplc.com. As part of the Committee’s

annual review of its terms of reference, the Committee took into

consideration the requirements of the FRC’s ‘Audit Committees

and the External Audit: Minimum Standard’ (the Minimum

Standard) and determined that the key requirements of the

Minimum Standard are already being met. We will continue to

keep the requirements of the Minimum Standard under review.

In light of its key responsibilities, the Committee considered

thefollowing items of business during the financial year:

• Financial reports: the integrity of the Group’s Financial

Statements and formal announcements of the

Group’sperformance

• Accounting policies: the Committee reviewed and approved

management’s identification and determination of key

accounting judgements

• Risk and internal controls: the Group’s internal financial,

operational and compliance controls and risk identification

and management processes. Review of Group policies

foridentifying and assessing risks and arrangements

foremployees to raise concerns (in confidence) about

possibleimproprieties

• Cyber security: the Committee received an update on cyber

security strategy and the outcomes of a cyber attack simulation

exercise undertaken by management

• Viability: consideration of management’s assumptions and

disclosures relating to the Group’s Viability Statement asset

out on pages 91 to 92

• Internal Audit: review of the annual Internal Audit programme

and the consideration of findings of any internal investigations

and management’s response

• Process controls and efficiency: the Committee received

reports from management on design and product development

transition risks and controls. The Committee also received

updates from management on emerging regulatory

developments, including the key changes to the Board’s

responsibilities for systems of risk management and internal

control under the 2024 Corporate Governance Code

• Treasury matters: including reviewing proposed amendments

to the Treasury Policy, including the core cash policy

• External auditor: recommending the appointment of the external

auditor, approving their remuneration and overseeing their work.

Reviewing reports received from the external auditor. Reviewing

the effectiveness and independence ofthe external auditor

• Ethics update: the Committee received and considered

reports from management on the considerations of the Ethics

Committee, including the Group’s whistle blowing

arrangements and health and safety

• Legal and Brand Protection update: the Committee received

and considered reports from management on current and

emerging risks in the fields of Legal, Brand Protection and

Asset Profit and Protection, and the actions being taken,

orproposed, to mitigate such risks

• Sustainability Reporting: the Committee reviewed the

requirements of the TCFD and the progress made in relation

to the climate-related risk scenario analysis undertaken

inFY2023/24 to assess the impact of climate-related risks

onBurberry. The Committee also received an update

onpreparations for new CSRD regulations

• Group Tax Strategy: the Committee reviewed the Tax strategy

in the context of an evolving regulatory environment and

theGroup’s uncertain tax positions. The tax governance

framework can be found on page 106

Meetings and attendance

The Committee met formally four times during the year (see

thetable above). Where members were unable to attend, they

provided feedback to the Chair on the matters to be discussed

in advance of the meetings.

The Chair of the Committee met separately with representatives

of the external auditor, senior members of the Finance function

and the Senior Vice President, Internal Audit and Risk on a regular

basis, including prior to each Committee meeting. In addition,

he met with members of the Group Internal Audit team and other

members of management on an ad hoc basis as required to

fulfil his duties.

Regular attendees at Committee meetings included: the Chair of

the Board; CEO; CFO; Company Secretary; Senior Vice President,

Internal Audit and Risk; Senior Vice President, Group and

Corporate Finance; Vice President, Group Financial Controller;

General Counsel; and representatives of the external auditor.

Atthe end of each meeting, the Committee held closed meetings

with the external auditor and with the Senior Vice President,

Internal Audit and Risk, without management being present.

The Board is satisfied that Alan Stewart and Alessandra Cozzani

have recent and relevant financial experience, and that all

otherCommittee members have past employment experience

ineither finance or accounting roles, or broad consumer

experience and knowledge of financial reporting and/or

international businesses. As a whole, the Board is satisfied that

the Audit Committee has competence relevant to the business

sector. The biographies set out on pages 95 to 99 provide

details ofeach member’s background and experience.

Audit Committee membership and meeting attendance during the year

Committee member Member since Meeting attendance

Alan Stewart (Chair) 1 September 2022 4/4

Alessandra Cozzani 1 September 2023 3/3

Ron Frasch 7 November 2018 4/4

Danuta Gray 12 July 2023 3/3

Matthew Key

26 September 2013 1/1

Debra Lee

1 October 2019 3/4

Antoine de Saint-Affrique 1 January 2021 4/4

1. Matthew Key retired from the Board on 12 July 2023, and stepped down as Chair of the Audit Committee on that date.

2. Debra Lee was unable to attend one Audit Committee meeting due to a prior business commitment.

119

Burberry Annual Report 2023/24

Corporate Governance Statement | Audit, Risk and Internal Control

Significant matters

forthe year ended

30 March 2024

How the Audit Committee addressed these matters

Impairment assessment

ofright of use assets

andproperty, plant and

equipment held in retail

cash generating units

In November, March and May, the Committee considered management’s assessment of the

recoverability of the carrying value of assets held in retail cash generating units, including

property, plant and equipment and right-of-use assets relating to store leases. The Committee

considered the approach applied by management to review for potential indicators of impairment

of retail cash generating units and how current performance has impacted this. The Committee

reviewed and challenged the sensitivities applied to the estimates of future store performance

and reviewed management’s proposed disclosures relating to these uncertainties. The Committee

concluded that the carrying value of assets held in retail cash generating units and disclosures

contained in the Financial Statements for the period were appropriate.

The results of the impairment assessment of assets held in retail cash generating units, together

with related sensitivities, are set out in note 13 of the Financial Statements.

The appropriateness

ofthevaluation of the

recoverability of the cost

of inventory and the

resulting estimation

ofprovision required

In November, March and May, the Committee considered management’s assessment of the

recoverability of the cost of inventory and the resulting amount of provisioning required.

TheCommittee reviewed the Group’s current provisioning policy, the expected loss rates

oninventory held at the balance sheet date and the nature and condition of current inventory.

Thereview included analysis of actual inventory, noting the age and expected exit routes for the

remaining surplus inventory held at the balance sheet date and the actual loss rates experienced.

The Committee considered the sensitivity to the assumptions of loss rate and exit route and how

this aligned to the current performance of the business to understand how management

quantified the range of potential outcomes and level of estimation applied. The Committee

concluded that the inventory assets recognised and disclosures contained in the Financial

Statements for the period were appropriate. Movements in inventory provisioning and the related

sensitivities are set out in note 17 of the Financial Statements.

Uncertain tax positions

andthe Group’s more

significant tax exposures

and the appropriateness

ofany related provisions

and financial statement

disclosures

The Committee received regular updates of developments relating to discussions with tax

authorities and the status of any ongoing tax audits. The Committee reviewed and challenged

theappropriateness of assumptions and estimates applied to estimate the amount of assets and

liabilities to be recognised in relation to uncertain income tax and deferred tax positions and the

disclosure of any significant estimates applied to tax balances. The Committee also discussed

matters with external advisors, where significant estimation was required. The Committee

concluded that the assets and liabilities recognised and disclosures contained in the Financial

Statements for the period were appropriate. Details of movements in tax balances are set out

innotes 9 and 15 of the Financial Statements and further disclosure of tax contingent liabilities

isgiven in note 32.

Going Concern and

Viability

The Committee considered the going concern and viability analysis carried out by management.

The Committee considered the risks that could threaten the Group’s business model, future

performance, solvency, liquidity and reputation and how these were included in the severe but

plausible downside scenario which included an aggregation of several severe impacts of these

principal risks and the reverse stress test scenario alongside the current cash position, facilities

available to the Group and mitigating actions that could be taken. The Committee concluded that

a robust assessment had been carried out and, in all the scenarios considered, the Group was

able to maintain sufficient liquidity to continue trading.

The impact of climate risk

on the Group’s financial

reporting and financial

statements (TCFD)

The Committee considered the impact of climate risk on the financial statements and the TCFD

reporting on behalf of the Board. The Committee considered the approach taken by management

to further develop the digital twin model that had been updated with the latest Group

performance and locations.

The Committee noted the ongoing areas of market and consumer preference risk and physical

risks as being the most significant risks identified by the modelling. The Committee also noted

the ongoing increase in visibility of climate risk in the wider organisation and reviewed the

preparation for CSRD reporting that management have progressed in the year.

The Committee reviewed the disclosures in the Annual Report on behalf of the Board to ensure

that they were in compliance with the TCFD recommendations, and the assurance provided

bythe Group’s auditors.

120

Burberry Annual Report 2023/24

Significant matters

forthe year ended

30 March 2024

How the Audit Committee addressed these matters

Whether the Annual Report

is fair, balanced and

understandable

The Committee considered the Annual Report and Interim Report, on behalf of the Board, to

ensure that they were fair, balanced and understandable, in accordance with the requirements

ofthe UK Corporate Governance Code. The Committee reviewed the report from the Strategic

Report drafting team, comments arising from the review of the Financial Statements by senior

management and comments raised by the Group’s auditors.

The Committee also considered the use of alternative performance measures by the Group and

concluded that there is an appropriate balance between statutory and alternative performance

measures ensuring equal prominence.

The Committee concluded that the Annual Report, taken as a whole, is fair, balanced and

understandable and provides the information necessary to assess the Group’s performance,

business model and strategy.

Other matters During the year, the Committee also considered management’s papers on other subjects,

including the carrying value of goodwill and associated disclosures and significant judgements

relating to lease term where a judgement is taken on the likelihood of exercising options within

leases and impairment of receivables.

121

Burberry Annual Report 2023/24

Corporate Governance Statement | Audit, Risk and Internal Control

External auditor

EY commenced their first year of audit in FY 2020/21 following

acompetitive tender process. The current audit partner is

Michael Rudberg who has held the role since EY were appointed

as external auditor. The external audit contract will be put out

totender at least every ten years as required by regulation.

Thenext tender will be in respect of FY 2030/31 at the latest,

and the process will be led by the Committee.

The Audit Committee oversees and assesses the work

undertaken by EY, and in FY 2023/24 the Committee monitored

and reviewed activities including:

• The audit plan, including strategy, scope and materiality

• The approach to risk assessment, including in relation to

climate-related risks

• The approach to auditing controls, the use of data

analyticsand how the auditor demonstrated robust

professional scepticism

• The limited assurance work carried out on the TCFD disclosures,

which is a separate non-audit service provided by EY

• Reports at the half year and full year

During the year, the Committee met with the auditor without

members of management being present.

Independence and effectiveness

One of the Committee’s primary responsibilities is to make

arecommendation on the appointment, reappointment and

removal of the external auditor. Each year, the Committee

assesses the qualifications, expertise, resources and

independence of the external auditor and the effectiveness

ofthe previous audit process. Over the course of the year,

theCommittee reviewed the audit process and the quality

andexperience of the audit partners engaged in the audit to

satisfyitself that it received the highest quality audit possible.

Tosupport this assessment, a survey was sent to the Audit

Committee Chair, key members of the Finance team and

othermembers of the senior management team as part of

theyear-end process. The Committee considered the results

ofthesurvey and concluded that the external audit

processwaseffective.

The Committee’s recommendation on the appointment and

reappointment of the external auditor is free from influence

byathird party and there are no contractual obligations, which

restrict the Committee’s ability to make such a recommendation.

The Committee also reviewed the proposed audit fee and terms

of engagement for FY 2023/24. Details of the fees paid to the

external auditor during FY 2023/24 can be found in note 7 to the

Financial Statements.

Non-audit services

The Committee recognises that the independence of the

external auditor is an essential part of the audit framework and

the assurance that it provides. The Committee has adopted a

policy which sets out a framework for determining whether it is

appropriate to engage the Group’s auditor for non-audit services

and pre-approving non-audit fees. This policy was updated

during FY 2023/24 to reflect the Revised Ethical Standard

issued by the FRC in January 2024 which takes into account

recent revisions made to the International Ethics Standards

Board for Accountants’ Code of Ethics which helps ensure high

standards of independence and ethical behaviour are applied

consistently by UK audit firms and their networks.

The overall objective of the policy is to ensure that the

provisionof non-audit services does not impair the external

auditor’s independence or objectivity. This includes, but is not

limitedto,assessing:

• Any threats to independence and objectivity resulting from

the provision of such services; any safeguards in place to

eliminate or reduce these threats to a level where they would

not compromise the auditor’s independence and objectivity;

the nature of the non-audit services; and whether the skills

and experience of the audit firm make it the most suitable

supplier of the non-audit service

• The value of non-audit services that can be billed by the

external auditor is restricted by a cap, which is set at 70%

ofthe average audit fees for the preceding three years as

defined by the FRC

During FY 2023/24 the non-audit services provided by Burberry’s

external auditor did not exceed this cap.

Proposed fees above £100,000 are approved by the Chair

oftheAudit Committee. Non-audit services with a value below

£100,000 and which are in line with the Group’s policy have

been pre-approved by the Audit Committee. Compliance with

the policy of engaging the Group’s auditor for non-audit services

and pre-approving non-audit fees is reviewed and monitored

bythe Senior Vice President, Internal Audit and Risk. These fees

must be activity based and not success related. Atthe half-year

and year-end, the Audit Committee reviews all non-audit services

provided by the auditor during the period, and the fees relating

to these services.

During the year, the Group spent £0.3 million on non-audit

services provided by EY (9.7% of the average of Group audit

fees incurred over the last three years).

The rationale for using the external auditor to perform these

services was that EY was best able to provide the services we

require at a reasonable fee and within the terms of our policy.

No advisory services were provided by EY during FY 2023/24.

Where EY was selected to provide non-audit related services,

EY’s existing knowledge and experience of the Group were

taken into account. Significant non-audit work performed

byEYduring FY 2023/24 included:

• Review of the half-year financial statements; and

• Limited assurance over TCFD reporting.

Further details can be found in note 7 to the Financial Statements.

122

Burberry Annual Report 2023/24

Evaluation of internal controls

The Board is responsible for the Group’s internal controls

andrisk management procedures. Details of the Group’s risk

management processes and the management and mitigation

ofeach principal risk, together with the Group’s Viability

Statement, can be found in our Risk and Viability Report

onpages 83 to 92.

The Committee discharges its duties in respect of risk

management by:

• Determining the nature and extent of the principal and

emerging risks it is willing to accept to achieve the Group’s

strategic objectives (the Board’s risk appetite)

• Challenging management’s implementation of effective

processes of risk identification, assessment and mitigation

The Audit Committee is responsible for reviewing the

effectiveness of the Group’s internal controls. Ongoing review

of these controls is provided through internal governance

processes and the work of the Group is overseen by management,

particularly the work of the Group Internal Audit team and the

Risk Committee. Regular reports on these activities are provided

to the Audit Committee as reflected in the standing items on

theAudit Committee agenda.

The Board, through the Audit Committee, has conducted a

robust assessment of the principal and emerging risks and

internal control framework. It has considered the effectiveness

of the internal controls in operation across the Group for the

year covered by the Annual Report and Accounts and up to

thedate of its approval by the Board. This review covered the

material controls, including financial, operational and compliance,

as well as risk management processes. No significant control

weaknesses were identified. The internal controls are designed

to manage rather than eliminate the risk of not achieving

business objectives and can only provide reasonable and not

absolute assurance against material misstatement or loss.

The process followed by the Board, through the Audit

Committee, in regularly reviewing the system of internal

controls and risk management processes complies with the

Guidance on Risk Management, Internal Control and Related

Financial and Business Reporting issued by the FRC. It also

accords with the provisions of the Code.

Control environment

Our business model is based primarily on centralised design,

product development, supply chain and distribution operations

to supply products to global markets via retail, including digital

and wholesale channels. This is reflected in our internal control

framework, which includes centralised direction, resource

allocation, oversight and risk management of the key activities

of marketing, inventory management, as well as brand and

technology development. We have also established procedures

for the delegation of authorities to ensure that approval for

matters that are considered significant is provided at an

appropriate level. In addition, we have policies and procedures

in place that are designed to support risk management across

the Group. These include policies relating to treasury and

theconduct of employees and third parties with whom we

dobusiness, including prohibiting bribery and corruption.

Theseauthorities, policies and procedures are kept

underregular review.

The Group operates a “three lines of defence” model which

helps to achieve effective risk management and internal control

across the organisation.

• First line of defence: management owns and manages risk

and is also responsible for implementing corrective actions

toaddress process and control deficiencies

• Second line of defence: to help ensure the first line is

properly designed, established and operating effectively,

management has also established various risk management

and compliance functions to help build and/or monitor the

first line of defence. These include, but are not limited to,

functions such as Group Risk Management, Legal, Brand

Protection, Company Secretariat, Group Finance Compliance,

Health and Safety, Data Protection, Asset and Profit

Protection, and Business Continuity

• Third line of defence: Group Internal Audit provides the

AuditCommittee and management with independent and

objective assurance on the effectiveness of governance,

riskmanagement and internal controls. This includes the way

inwhich the first and second lines of defence achieve risk

management and control objectives

Internal Audit

The Group Internal Audit function is managed by the Senior

VicePresident, Internal Audit and Risk, who reports to the

CFObut has an independent reporting line to the Chair

oftheAudit Committee.

The scope of Internal Audit work is considered for each

operating company and Group function. This takes account

ofrisk assessments, input from senior management and the

Audit Committee, and previous audit findings. For example,

inFY 2023/24, there was continued emphasis on assurance

over controls to manage cybersecurity risk (particularly

ransomware and data exfiltration), and the maturity of controls

over IT projects and operations (including critical third parties).

There was also a continued focus on assessing the maturity

ofcontrols over core processes in inventory management,

Finance, Supply Chain, Digital, Legal and HR. Changes to the

Group’s risk profile are considered on an ongoing basis and

amendments are made to the internal audit plan as necessary

during the year. Any proposed changes to the plan are

discussed with the CFO and reported to the Audit Committee.

The effectiveness of Group Internal Audit is assessed every five

years, with the latest review having been reported in FY2019/20.

Ongoing visibility of the internal control environment is

providedthrough Internal Audit reports to management and

theAudit Committee. These reports are graded to reflect an

overall assessment of the control environment under review,

and thesignificance of any control weaknesses, including

fraudrisk,identified.

Remedial actions to address findings are identified and agreed

with management. The Audit Committee places emphasis on

actions being taken as a result of internal audits, and regular

reports are provided to the Audit Committee on the status

ofany overdue actions.

123

Burberry Annual Report 2023/24

Financial reporting

Management is responsible for establishing and maintaining

adequate internal controls over financial reporting. These are

designed to provide reasonable assurance regarding the

reliability of financial reporting and the preparation of Financial

Statements for external reporting purposes.

We have comprehensive planning, budgeting, forecasting and

monthly reporting and management review processes in place.

A summary of financial results, supported by commentary and

performance measures, is provided to the Board each month.

In relation to the preparation of Group Financial Statements,

thecontrols in place include:

• A centre of expertise responsible for reviewing new

developments in reporting requirements and standards to

ensure that these are reflected in Group accounting policies,

Financial Statements and disclosures

• A global finance function and governance structure

consisting of colleagues with the appropriate expertise

toensure that Group policies and procedures are correctly

applied. Effective management and control of the Finance

function is achieved through our finance leadership team,

consisting of key finance colleagues from the regions,

Burberry Business Services and our London headquarters

Our financial reporting process is supported by transactional

and consolidation finance systems. Reviews of financial

controls are carried out by senior members of the Finance

function. The results of these reviews are considered by the

Audit Committee as part of its monitoring of the performance

ofcontrols governing financial reporting.

The Audit Committee reviews the application of financial

reporting standards and any significant accounting judgements

made by management. These matters are also discussed with

the external auditor.

Fair, balanced and understandable

As a whole, the Annual Report and Accounts are required to be

fair, balanced and understandable, and to provide the information

necessary for shareholders to assess the Group’s position,

performance, business model and strategy. On behalf of the

Board, the Audit Committee considered whether the fair,

balanced and understandable statement could properly be

given on behalf of the Directors. The processes followed to

provide the Committee with assurance were considered and

theCommittee provided arecommendation to the Board that

the fair, balanced and understandable statement could be

givenonbehalf oftheDirectors.

Based on this recommendation, the Board is satisfied that it has

met this obligation. A summary of the Directors’ responsibilities

in relation to the Financial Statements is set out on page 148.

The Independent Auditor’s Report on pages 149 to 159 includes

a statement concerning the auditor’s reporting responsibilities.

Corporate Governance Statement | Audit, Risk and Internal Control

124

Burberry Annual Report 2023/24

Corporate Governance Statement | Directors’ Remuneration Report

DIRECTORS’

REMUNERATION REPORT

Dear Shareholder,

I am pleased to present to you the Directors’ Remuneration

Report for the year ended 30 March 2024 which has been

approved by both the Remuneration Committee (the Committee)

and the Board.

Directors’ Remuneration Policy review

Last year our renewed Directors’ Remuneration Policy was

approved by 91% of shareholders at the AGM in July 2023 and

Iwould once again like to thank shareholders for their engagement

and support. I am confident that this Policy continues to support

the delivery of our strategic priorities and provides alignment

with our culture and purpose.

Business context

FY 2023/24 has been a challenging year for Burberry which

hasbeen reflected in our reward outcomes. Our financial results

underperformed our original expectations as we executed our

strategy against a backdrop of slowing luxury demand. Revenue

was £2.97 billion (flatgrowth at CER*) and adjusted operating

profit was £418 million (down 25% at CER*). During the year

wehave madegood progress, refocusing our brand image,

evolving our product, strengthening distribution and delivering

operational improvements while continuing to adapt as we learn

from our experience. We remain confident in our ability to

successfully navigate this period and deliver our strategy to

realise Burberry’s potential as the Modern British Luxury brand

and we continue tobelieve our Directors’ Remuneration Policy

supports the business toachieve this.

Remuneration outcomes for FY 2023/24

Annual bonus for FY 2023/24

The annual bonus for the CEO and the CFO for FY 2023/24 was

based 75% on adjusted operating profit and 25% on performance

against strategic objectives linked to our strategy and brand

aswell as our environmental and social targets. In addition,

theCFO had strategic objectives in relation to cost strategy.

“We remain

confidentin our

ability to deliver our

strategy and believe

our Remuneration

Policy supports

thebusiness to

achievethis.”

Danuta Gray

Chair, Remuneration Committee

Our adjusted operating profit of £418 million (£478 million

atCER*) was below the threshold target. As a result, there was

no payout for the profit element.

While we made progress on executing our strategy, delivering

acreative transition during a global slowdown in luxury demand

has been challenging. Revenue performance for all regions

anddigital was behind target. However, progress was made

inenhancing our brand focus and elevation and we had positive

reactions to key brand events during the year. We also made

good progress during FY 2023/24 against our environmental and

social targets, including phasing out the use of virgin cashmere

incertain categories and progressing on our responsibly sourced

and certified key raw materials. There was good progress

ontheCFO’s specific objectives in relation to cost strategy,

including disciplined cost control throughout thebusiness.

The Committee judged that progress was made on refining our

brand image, evolving our product and strengthening distribution,

resulting in some of the strategic objectives being partially met.

However, in light of the business performance and broader

shareholder experience, the Committee and Jonathan Akeroyd

agreed that it would not be appropriate for him to receive

anannual bonus for FY 2023/24. The Committee determined

thatKate Ferry would receive an annual bonus for FY 2023/24

of£121,500, representing 9% of her maximum bonus.

TheCommittee considered that this level of bonus payout

wouldbe appropriate, taking into account theperformance

against strategic objectives (in particular her specific objectives

inrelation to cost strategy), as well as the excellent broader

contribution Kate has made since joining Burberry last July.

Kate will apply 50% of her net bonus to acquire Burberry shares.

2021 Burberry Share Plan award

The Burberry Share Plan (BSP) awards granted in 2021 will

vestin July 2024. This is the second annual vesting since the

BSP was established in 2020. As the current Executive Directors

were not employed by Burberry when the 2021 BSP awards

were granted, no awards are due to vest to them in 2024.

Details of the BSP awards granted to the Executive Directors

are set out on pages 132 to 134. BSP awards granted to other

participants in 2021 will vest in July 2024, further aligning our

management population with shareholder interests.

Areas of focus for FY 2023/24

• Executive reward

• Broader employee reward

• External environment and shareholder engagement

• External reporting

Details of agenda items discussed at each Committee

meeting are set out on page 141.

* This measure removes the effect of changes in exchange rates compared to the prior period.

125

Burberry Annual Report 2023/24

Approach to remuneration for FY 2024/25

Salary and Board fees

After full consideration of the broader context and the

approachfor the wider workforce, the Committee agreed that

neither Executive Director would receive a salary increase for

FY 2024/25. Similarly, it was agreed by the Committee and

theBoard respectively that there would be no increase to the

Chair’s fee or the Non-Executive Directors’ fees for FY 2024/25.

Annual bonus

The annual bonus structure will follow a similar framework

tothat in FY 2023/24. Executive Directors will be eligible for

amaximum bonus of 200% of salary. The annual bonus will be

based 75% on adjusted operating profit and 25% on performance

against strategic objectives for the CEO and the CFO linked to

our strategy and brand as well as our environmental and social

targets. Further details are provided on page 132.

BSP awards

In FY 2024/25, the CEO will be granted a BSP award of 162.5%

of salary and the CFO will be granted a BSP award of 150% of

salary. The Committee carefully considered the impact of share

price on the number of shares granted under the BSP and

shareholder guidance in relation to this. In light of the broader

challenges in the luxury market and likely management action

that will be required to deliver the strategy and drive the future

share price, the Committee considered that it would be better

able to judge whether a windfall gain had occurred at vesting

rather than at award. The Committee therefore determined not

to scale back awards at grant. However, the Committee will

carefully consider whether it would be appropriate to scale

backawards at the point of vesting and a framework has been

developed to assist the Committee in identifying whether

Executive Directors have benefited from windfall gains at that

time. The Committee will continue to monitor the share price

upto the time the BSP awards are granted in July.

BSP awards for FY 2024/25 will be granted on the same basis

as the awards in FY 2023/24. Reflecting the simplified vesting

schedule that was approved by shareholders at the AGM in

July2023, awards will vest after three years and will then be

subject to a two-year post-vesting holding period. Awards will

continue to be subject to the same performance underpins:

(i)revenue, (ii) ROIC and (iii) brand and sustainability.

TheCommittee considers that these underpins continue

torepresent a well-rounded and balanced approach to

safeguarding the financial stability of the business, delivering

our strategy and elevating the brand. Further details are

provided on page133.

Broader employee reward

During the year, the Committee took time to listen to feedback

from colleagues about reward at Burberry and to deepen its

knowledge of the broader employee reward context. Although

inflation is now decreasing globally, the Committee recognises

that there are ongoing cost-of-living challenges and high

interest rates and that these continue to have a disproportionate

impact on our more junior colleagues.

Burberry is committed to being a fair and responsible employer

and we are proud to be a Principal Partner of the Living Wage

Foundation and an accredited UK Living Wage employer. In April

2024, we implemented a pay increase of 12% for approximately

1,000 colleagues in the UK. This increase was above the

recommended 10% real Living Wage increase. All other eligible

colleagues will receive salary increases at the usual time in July

2024. Alongside our performance-based approach, we will also

use the 2024 merit review to provide greater increases to our

more junior colleagues. More details of this approach are set

out on page 129.

Burberry introduced sustainability metrics to the annual

corporate bonus plan for the wider workforce for FY 2023/24.

The corporate bonus payout for eligible colleagues was therefore

based on adjusted operating profit, sustainability metrics

andindividual performance. The introduction of sustainability

metrics has been well received and demonstrates the value

weplace on sustainability as part of our strategy and has

supported the business in driving performance against our key

sustainability priorities. In FY 2024/25 sustainability metrics

willcontinue to form part of the annual corporate bonus plan.

Remuneration Committee membership and meeting attendance during the year

Committee member Member since Meeting attendance

Danuta Gray (Chair) 1 December 2021 4/4

Fabiola Arredondo 10 March 2015 4/4

Sam Fischer 1 November 2019 4/4

Ron Frasch 1 September 2017 4/4

Matthew Key

26 September 2013 1/1

Orna NíChionna 3 January 2018 4/4

Alan Stewart

12 July 2023 3/3

1. Matthew Key stepped down from the Committee with effect from 12 July 2023.

2. Alan Stewart was appointed to the Committee with effect from 12 July 2023.

Corporate Governance Statement | Directors’ Remuneration Report

126

Burberry Annual Report 2023/24

In December 2023, we granted our annual award of free

sharesto all colleagues globally. We also offered ShareSave

in17 countries and territories, including to our new colleagues

inItaly following the acquisition of a product development

business from our longstanding partner, Pattern SpA. For our

management population, July 2023 saw the vesting of the 2020

BSP awards, the first annual vesting under the BSP since its

approval by shareholders in 2020.

Recognising the significance of meaningful communication

withour workforce, in March we once again held a dedicated

session with our Global Workforce Advisory Forum on

remuneration at Burberry. This meeting allowed Forum members

toprovide feedback on how we engage and communicate with our

colleagues on pay and benefits. Suggestions were shared around

how to further improve the colleague experience inaccessing

systems and supporting information relating topayand benefits.

Forum members also offered insights onthose benefits that are

highly valued by the wider workforce, includingboth financial

benefits and non-financial benefits such as training and

development. The Committee highly values the contributions

byForum members. I also ensure that the perspectives of our

workforce are considered in Committeemeetings.

Additional details on the broader workforce’s reward structure,

along with its alignment with the Executive Directors’

remuneration, can be found on page 129.

Committee effectiveness

The Committee’s annual performance and effectiveness review

was undertaken as part of the externally facilitated Board

effectiveness review and I am pleased to note that the review

confirmed that the Committee operates well and provides

effective support to the Board. Further information on the

process is set out on page 111.

2024 AGM

I look forward to receiving your support for the Directors’

Remuneration Report at the AGM on 16 July 2024.

Danuta Gray

Chair, Remuneration Committee

127

Burberry Annual Report 2023/24

AT A GLANCE

The Directors’ Remuneration Policy was approved by shareholders at the AGM on 12 July 2023 and is set out

infull intheDirectors’ Remuneration Report FY 2022/23, which can be found in the FY 2022/23 Annual Report

atBurberryplc.com.

Element Approach for FY 2023/24 Approach for FY 2024/25

Salary

Salaries from 1 July 2023:

• Jonathan Akeroyd (CEO) – £1,138,500

• Kate Ferry (CFO) – £675,000

(witheffectfrom the commencement

ofher employment)

After full consideration of the broader

context and the approach for the wider

workforce, no salary increases were awarded

for the Executive Directors for FY 2024/25.

Pension

Pensions for FY 2023/24 were in line with

themaximum employer pension contribution

available to the majority of the UK workforce

(currently 10% of salary).

No change for FY 2024/25.

Benefits

The cash benefits allowances for

FY2023/24were:

• Jonathan Akeroyd (CEO) – £50,000

• Kate Ferry (CFO) – £20,000 (with effect

from the commencement of her

employment)

Non-cash benefits principally include private

medical, long-term disability insurance and

lifeassurance.

No change for FY 2024/25.

Annual bonus

Maximum annual bonus of 200% of salary.

Performance measures:

• 75% adjusted operating profit

• 25% strategic objectives for the CEO

andthe CFO

Executives are required to invest 50%

ofanynet bonus into Burberry shares until

the shareholding guidelines are met.

Malus and clawback provisions apply.

No change for FY 2024/25.

Burberry Share Plan

Maximum annual award levels:

• Jonathan Akeroyd (CEO) – 162.5% of salary

• Kate Ferry (CFO) – 150% of salary

Awards vest in full after three years subject

to achievement of performance underpins

and are subject to a holding period to the

fifth anniversary of grant of award.

Details of the performance underpins for

the2023 awards are set out on page 132.

Malus and clawback provisions apply.

No change for FY 2024/25.

Details of the performance underpins for

the2024 awards are set out on page 133.

Shareholding

guidelines

300% of salary

Post-employment shareholding guideline

of300% of salary (oractual shareholding

iflower) for two years after stepping down

asan Executive Director.

No change for FY 2024/25.

Details of the principles the Committee took into account when developing the Directors’ Remuneration Policy, including Provision

40 of the UK Corporate Governance Code, are set out on page 212 of the FY 2022/23 Annual Report.

The Committee considers that the Directors’ Remuneration Policy operated as intended during FY 2023/24.

Corporate Governance Statement | Directors’ Remuneration Report

128

Burberry Annual Report 2023/24

BROADER EMPLOYEE REWARD AT BURBERRY

Element How we reward and support our colleagues

Base salary

All colleagues receive

afair and equitable

market-driven salary

We have:

• Reviewed salaries on an annual basis through our merit review process

• Implemented a pay increase in April 2024 of 12% for approximately 1,000 colleagues in the UK.

This was above the recommended 10% real Living Wage increase in recognition of ongoing

cost-of-living challenges our UK colleagues are facing

• Introduced a scaled approach for the 2024 merit review where we have differentiated

proportionately higher increases to our more junior colleagues. As in prior years, final merit

increases reflect individual performance. For example, in the UK, the salary budget was 4%,

with individual increases ranging from 0% to 8% depending upon individual performance and

organisational level

Executive Director alignment: There will be no increase to the base salaries of Executive

Directors with effect from 1 July 2024.

Benefits

All colleagues are eligible

to participate in a range

ofmarket-driven benefits,

including those promoting

wellbeing and supporting

saving for retirement

Our global benefits offer includes:

• Parental Leave Policy providing all eligible new parents with 18 weeks’ paid leave

• Wellbeing days (in addition to annual leave entitlement) providing paid time off during the year

• Volunteering Policy providing colleagues with three paid volunteering days per year

• Employee discount and product sales

• Long service awards at each five-year milestone

• Pension schemes available in line with local market practice

• Access to Employee Assistance Programme

Executive Director alignment: Executive Directors receive a pension allowance in line with the

rate available to the majority of the UK workforce. They are eligible for a range of market-typical

non-cash benefits.

Bonus

All colleagues are

eligiblefor short-term

performance-related pay

to recognise and reward

their contribution

We have:

• Introduced sustainability metrics to the corporate annual bonus plan, alongside the Group

adjusted operating profit target and individual performance

• Implemented further changes to our Retail Variable Pay Plan so that colleagues in retail who

participate in our retail bonus and commission plans are effectively incentivised and rewarded

for their performance through the delivery of store sales targets and specific retail KPIs

Executive Director alignment: Group adjusted operating profit, sustainability and individual

performance targets apply to the bonuses for the Executive Directors and participants in the

corporate annual bonus plan.

Share plans

All colleagues are eligible

to participate in Burberry

share plans to recognise

and reward their

contribution and to enable

them to share in our

futuresuccess

We offer the following share plans at Burberry:

• FreeShare Plan: gives all colleagues the opportunity to participate in our future success

through an annual award of free shares with a value of approximately £500

• ShareSave: provides the opportunity for colleagues to save monthly from their pay up to a

maximum of £500 per month and buy shares at a 20% discount to the market price at grant

• Burberry Share Plan (BSP): rewards approximately 700 of our senior colleagues for delivering

on our strategy which we believe will drive greater longer-term returns for our stakeholders.

Awards are granted annually and vest after three years. In July 2023, our 2020 BSP awards

vested, the first annual vesting under the BSP since it was approved by shareholders in 2020.

BSP awards will now continue to vest annually, subject to continued employment, with the next

annual vesting in July 2024

Executive Director alignment: Executive Directors are eligible to participate in our share plans.

At Burberry, our reward philosophy is to provide our colleagues across the Group with fair, equitable and

competitive total reward.Our remuneration framework is designed to support our purpose and values, and to

inspire our colleagues to deliver outstanding results. Our framework is cascaded across the Group and consists

of the following key components:

129

Burberry Annual Report 2023/24

ANNUAL REPORT ON REMUNERATION

FY 2023/24 total single figure remuneration for Executive Directors (audited)

The table below sets out the single figure of total remuneration received or receivable by the Executive Directors in respect of

FY2023/24 (and the prior financial year). The subsequent sections detail additional information for each element of remuneration.

Salary

£’000

Allowances

and benefits

£’000

Pension

£’000

Bonus

£’000

Burberry

Share Plan

(BSP)

£’000

All-employee

share plans

£’000

Prior company

buy-out

awards

£’000

Total

£’000

Total fixed

remuneration

£’000

Total variable

remuneration

£’000

Jonathan Akeroyd

Year to 30 March 2024 1,129 105 113 – – – – 1,347 1,347 –

Year to 1 April 2023 1,096 86 110 1,298 – – 1,699 4,289 1,292 2,997

Kate Ferry

Year to 30 March 2024

479 36 48 122 – – 1,278 1,963 563 1,400

1. Remuneration in the table above in relation to Kate Ferry for the year to 30 March 2024 relates to her period of employment as CFO from 17 July 2023.

2. The value shown in the prior company buy-out awards column for Jonathan Akeroyd represents the value of buy-out awards granted to him on 15 March 2022. Furtherdetails are

set out in the Directors’ Remuneration Report FY 2021/22. The value shown in the prior company buy-out awards column for Kate Ferry represents the value of her buy-out awards.

Further details are set out in the Directors’ Remuneration Report FY 2022/23.

Salary (audited)

The table below details annual salaries as at 1 April 2024. Taking into account business performance and the broader shareholder

experience, the Committee determined that annual salaries for the Executive Directors will not be increased from 1 July 2024.

Thebudgeted salary increase for our UK workforce for 2024 was 4%.

As at

30 March 2024

As at

1 July 2024 % change

Jonathan Akeroyd £1,138,500 £1,138,500 0%

Kate Ferry £675,000 £675,000 0%

Pension (audited)

The pension cash allowances for Jonathan Akeroyd and Kate Ferry are aligned to the maximum employer pension contribution

available to the majority of the UK workforce at 10% of base salary.

No Director has a prospective entitlement to receive a defined benefit pension.

Allowances and benefits (audited)

The table below details the cash allowances and non-cash benefits received by the Executive Directors during FY 2023/24

inaccordance with the Directors’ Remuneration Policy and as disclosed in the single figure table.

FY 2023/24 (£’000)

Cash

allowance

Private

medical

insurance

Life

assurance

Long-term

disability

insurance

Tax and legal

advice Other

Jonathan Akeroyd 50 15 17 21 2 –

Kate Ferry 14 1 2 1 18 –

1. Values shown above reflect the fact that Kate Ferry’s employment commenced on 17 July 2023.

2. The value shown in the tax and legal advice column for Kate Ferry reflects legal fees incurred in respect of her appointment.

There were no changes to benefits policies during the year.

Corporate Governance Statement | Directors’ Remuneration Report

130

Burberry Annual Report 2023/24

Annual bonus for FY 2023/24 (audited)

Both Executive Directors were eligible for a maximum bonus of 200% of base salary. As disclosed in the FY 2022/23 Annual Report,

Kate Ferry was eligible to participate in the FY 2023/24 bonus without any pro-rating in lieu of remuneration forfeited on leaving

herprevious employer. The annual bonus for FY 2023/24 was based 75% on Group adjusted operating profit performance

(atFY2022/23 CER) and 25% on strategic objectives including strategic, operational and environmental and social measures.

Adjusted operating profit performance

The table below sets out the targets and the performance achieved for FY 2023/24 in relation to the Group adjusted operating profit

performance measure:

Maximum

bonus opportunity

(% of salary)

FY 2023/24 Group adjusted operating profit targets FY 2023/24

Group adjusted

operating profit

achieved (CER

)Threshold Target Maximum

Jonathan Akeroyd

200% £666m £720m £774m £478m

Kate Ferry

1. This measure removes the effect of changes in exchange rates.

Adjusted operating profit for bonus purposes is calculated using the average exchange rates of FY 2022/23 and on a pro forma

basis. Details of pro forma results for FY 2023/24 are set out on page 25.

Based on the adjusted operating profit delivered, this element of the annual bonus will pay out at 0% (out of 75%).

Strategic performance

The following table summarises performance against the key strategic, operational and environmental and social measures

forFY2023/24:

Strategic objectives Performance in FY 2023/24

Strategy and brand • Good progress made in developing the brand through enhanced brand focus

• Positive reactions to key brand events

• Revenue performance for all regions and digital behind target

• Good progress in reconfiguring our supply chain to deliver our new elevated offer

• Acquisition and integration of a product development business from one of our longstanding technical

outerwear partners, enabling us to strengthen distribution and enhancing efficiencies andreliability

• Good progress on elevating the customer experience with on-target delivery of stores converted to new

concept during the year

Environmental and

social measures

• Phasing out the use of virgin cashmere in specific product categories

• Increased use of excess raw materials to support our decarbonisation agenda

• Sourced 56% of cotton certified as organic

• Communicated sustainable products and services across all marketing channels

• Good progress against our target by introducing new plastic-free alternatives for our consumerpackaging

• Stable colleague engagement score

In addition, good progress was made in relation to the CFO’s specific objectives in relation to cost strategy, including on disciplined

cost control throughout the business.

Annual bonus outcome for FY 2023/24

The Committee judged that progress was made on refining our brand image, evolving our product and strengthening distribution,

resulting in some of the strategic objectives being partially met. However, in light of the business performance and broader shareholder

experience, the Committee and Jonathan Akeroyd agreed that it would not be appropriate for him to receive an annual bonus for

FY2023/24. The Committee determined that Kate Ferry would receive an annual bonus for FY 2023/24 of £121,500, representing

9%ofher maximum bonus. The Committee considered that this level of bonus payout would be appropriate, taking into account the

performance against strategic objectives (in particular her specific objectives in relation to cost strategy), as well as the excellent

broader contribution Kate has made since joining Burberry last July.

Under the Directors’ Remuneration Policy, the Executive Directors are required to invest 50% of any net bonus earned into Burberry

shares until their shareholding guideline of 300% of salary is met. Kate Ferry will invest 50% of her net annual bonus for FY 2023/24

intoBurberry shares.

131

Burberry Annual Report 2023/24

Annual bonus for FY 2024/25

For FY 2024/25 the Executive Directors will be eligible for

amaximum bonus of 200% of salary. The annual bonus for

FY2024/25 will be based 75% on Group adjusted operating

profit performance (at FY 2023/24 CER) and25% on strategic

objectives. The adjusted operating profit targets are considered

to be commercially sensitive and will be disclosed in the

Directors’ Remuneration Report FY 2024/25.

The strategic objectives for FY 2024/25 for the CEO and the

CFO will continue to be based on a combination of strategic,

operational and environmental and social measures. For each

strategic area, the Committee will determine the payout in the

round, taking into account our progress in theyear against our

long-term objectives in these areas. Details of the progress

achieved and the Committee’s determination of bonus

outcomes will be provided in the Directors’ Remuneration

Report FY 2024/25.

Under the Directors’ Remuneration Policy, the Executive

Directors are required to invest 50% of any net bonus earned

into Burberry shares until their shareholding guideline of 300%

of salary is met.

Long-term incentive plan awards

The following section sets out details of:

• 2021 BSP awards vesting based on performance to FY 2023/24

• 2023 BSP awards granted during FY 2023/24

• 2024 BSP awards to be granted during FY 2024/25

2021 BSP awards vesting subject to

performance underpins to FY 2023/24

(audited)

Neither Executive Director was in role when the 2021 BSP

awards were granted and therefore no BSP awards will vest

toExecutive Directors based on performance to FY 2023/24.

2023 BSP awards granted during

FY2023/24 (audited)

The Committee granted a 2023 BSP award of 162.5% of salary

to Jonathan Akeroyd and of 150% of salary to Kate Ferry on

27 July 2023 in line with the Directors’ Remuneration Policy

approved by the shareholders at the 2023 AGM.

The table below summarises the BSP share awards granted to the Executive Directors during FY 2023/24.

Type of award Basis of award Shares awarded

Face value at grant

(£’000)

Performance

underpin period

Jonathan Akeroyd BSP share award 162.5% of salary 84,780 £1,850 3 years to 28 March 2026

Kate Ferry BSP share award 150% of salary 46,398 £1,012 3 years to 28 March 2026

Following the approval of the Directors’ Remuneration Policy by shareholders at the AGM in July 2023, 2023 BSP awards granted

tothe Executive Directors will vest in full three years from the grant date, subject to the performance underpins outlined below.

Theawards will be subject to a two-year holding period so that the total time horizon before any sale of shares (except to cover any

tax liabilities arising from the award) is five years for the entire award.

The face value of each award was calculated using the three-day average price prior to the date of grant (£21.8217), which was the

price used to determine the number of shares awarded.

BSP awards granted in 2023 are subject to the following underpins:

2023 BSP award

performance

underpins

Details

Revenue The level of Total Revenue at CER for the financial year which precedes the year of vesting being

at least £3,200 million

ROIC The level of Group ROIC at reported exchange rates for the financial year which precedes the

year of vesting being at least 1% above the Group’s WACC in the year of vesting (the Group’s

WACC was c.10% at the time of award)

Brand and sustainability

strategies

Reasonable progress having been achieved over the vesting period in respect of our strategy

toelevate our brand and to build a more sustainable future:

• Brand: when assessing the brand underpin the Committee will consider performance against

arange of relevant brand KPIs. This may include full-price sales, outerwear and leather goods

sales and progress on brand elevation, but it may also include other relevant metrics. These

metrics are all considered to be aligned with our strategy of elevating the brand to generate

long-term value for shareholders

• Sustainability: when assessing the sustainability underpin the Committee will consider whether

reasonable progress has been delivered against our sustainability and carbon reduction goals

to reduce scope 3 emissions by 46% by 2030 and to become Climate Positive by 2040 (as set

out on pages 50 to 67 of the FY 2022/23 Annual Report)

Corporate Governance Statement | Directors’ Remuneration Report

132

Burberry Annual Report 2023/24

If the Company does not meet one or more of the performance

underpins outlined on page 132 for the year of vesting, then the

Committee would consider whether it was appropriate to scale

back the level of payout under the BSP award. The intention

ofthe performance underpins is to provide a ‘safeguard’ to

ensure that the BSP awards do not pay out if the Company has

underperformed and vesting is not justified; the Committee will

take this intention into account when assessing the underpins.

In addition to the underpins described on page 132, the

Committee also retains the discretion to adjust the vesting

outcomeif it is not considered to be reflective of the underlying

financial or non-financial performance of the business orthe

performance of the individual, where underpins are no longer

considered appropriate or where the vesting outcome is not

considered appropriate in the context of the experience of

shareholders or other stakeholders.

2024 BSP awards to be granted in FY 2024/25

The Committee intends to grant 2024 BSP awards of 162.5%

ofsalary to the CEO and 150% of salary to the CFO. The

Committee carefully considered the impact of share price on

the number of shares granted under the BSP and shareholder

guidance in relation to this. In light of the broader challenges

inthe luxury market and likely management action that will be

required to deliver the strategy and drive the future share price,

the Committee considered that it would be better able to judge

whether a windfall gain had occurred at vesting rather than at

award. The Committee therefore determined not to scale back

awards at grant. However, the Committee will carefully consider

whether it would be appropriate to scale back awards at the

point of vesting and a framework has been developed to assist

the Committee in identifying whether Executive Directors have

benefited from windfall gains at that time. The Committee will

continue to monitor the share price up to the time of the grant

ofthe award in July.

The awards will vest in full three years following the date of

grant, subject to the performance underpins. The awards will be

subject to a two-year holding period so that the total time horizon

before any sale of shares (except to cover any tax liabilities

arising from the award) is five years for the entire award.

If the Company does not meet one or more of the performance

underpins outlined below, then the Committee would consider

whether it was appropriate to scale back the level of payout

under the BSP award. The Committee would retain discretion

todetermine the appropriate level of scale-back.

The Committee has reviewed the performance underpins and

determined thatthe underpins that applied to previous awards

continue toreflect a good overall balance of safeguarding the

financial stability of the business, delivery of the strategy and

elevation of the brand. The following performance underpins

will apply forthe 2024 awards:

2024 BSP award

performance

underpins

Details

Revenue The level of Total Revenue at CER for the financial year which precedes the year of vesting being

at least £3,200 million

ROIC The level of Group ROIC at reported exchange rates for the financial year which precedes theyear

of vesting being at least 1% above the Group’s WACC (currently c.10%) in the year ofvesting

Brand and sustainability

strategies

Reasonable progress having been achieved over the vesting period in respect of our strategy

toelevate our brand and to build a more sustainable future:

• Brand: when assessing the brand underpin the Committee will consider performance against

arange of relevant brand KPIs. Thismay include full-price sales, outerwear and leather

goodssales and progress on brand elevation, but it may also include other relevant metrics.

Thesemetrics are all considered to be aligned with our strategy of elevating the brand to

generate long-term value for shareholders

• Sustainability: when assessing the sustainability underpin the Committee will consider whether

reasonable progress has been delivered against our sustainability and carbon reduction goals

In addition to the underpins described above, the Committee also retains the discretion to adjust the vesting outcomeif it is not

considered to be reflective of the underlying financial or non-financial performance of the business or the performance of the

individual, where underpins are no longer considered appropriate or where the vesting outcome is not considered appropriate

inthecontext ofthe experience of shareholders or other stakeholders.

Payments to past Directors

There were no payments to past Directors above a de minimis limit of £3,000 during the year.

133

Burberry Annual Report 2023/24

Share interests and shareholding guideline (audited)

Executive Directors are subject to a shareholding guideline of 300% of base salary. There is no specific timeline in which

shareholding guidelines must be achieved. However, there is an expectation that Executive Directors make annual progress towards

their guideline, regardless of any annual bonus paid or shares vesting. In line with the Investment Association best practice guidance,

our shareholding guideline permits any incentive shares that have vested but are unexercised or that have not yet vested but are not

subject to any further performance conditions/underpins to count towards the shareholding requirement at 50% of their face value.

Other members of the Executive Committee are also subject to a shareholding guideline.

The following table sets out the total beneficial interests of the Executive Directors (and their connected persons) in ordinary shares

of Burberry Group plc as at 30 March 2024, as well as their progress against the shareholding guidelines. The table also summarises

conditional interests in share or option awards, with further detail of the underlying awards in the subsequent table.

Based on the three-month average share price to 30 March 2024 (our standard approach to assessing the guideline), neither

Jonathan Akeroyd nor Kate Ferry had met the guideline. Jonathan Akeroyd had exceeded his guideline (with a shareholding of 360%

of salary) as at 1 April 2023. He now holds more shares but the value of his shareholding as a percentage of his salary has decreased

given the decrease in share price. Given that Kate Ferry only joined the Company in July 2023, she has not yet met the guideline.

Beneficially held shares Share/option awards

Number of shares

beneficially

owned as at

30 March 2024

As % of salary

Shareholding

guideline

(% of salary)

Guideline met as

at 30 March 2024

Vested but

unexercised

awards

Unvested–

subject to

performance

underpins (BSP)

Unvested–

subject to

continued

employment

Jonathan Akeroyd 166,987 202% 300% No 0 188,911 26,493

Kate Ferry 33 0% 300% No 0 46,398 1,517

1. There have been no changes in the period up to and including 14 May 2024.

2. Based on the three-month average share price as at 30 March 2024 of £12.85.

3. In line with the shareholding guideline, only 50% of the face value of these shares counts towards the Executive Director’s shareholding guideline calculation (other than shares

under the all-employee SIP, which are held beneficially and count towards theExecutive Director’s shareholding guideline calculation). This also includes ShareSave options

(which do not count towards the Executive Director’s shareholding guideline calculation).

As former Executive Directors, Marco Gobbetti and Julie Brown are required to comply with Burberry’s post-employment

shareholding guideline in respect of share awards that vested on or after the date of the AGM in July 2020. Under this guideline

Marco was expected to retain a shareholding of 21,393 shares until 31 December 2023. As at 31 December 2023, Marco complied

with his obligation. Julie is expected to retain a shareholding of 10,350 shares until 1 April 2025. As at 30 March 2024, Julie complied

with her obligation.

The following table provides further underlying detail on the unvested awards at 30 March 2024 included in the table above.

Director Type of award Date of grant

Maximum number

of shares/options Performance period Vesting date(s)

Jonathan Akeroyd Buy-out

15 March 2022 24,643 N/A 15 June 2024

2022 BSP

27 July 2022 104,131 3 years to 29 March 2025

4 years to 28 March 2026

5 years to 27 March 2027

1/3 on 27 July 2025

1/3 on27 July 2026

1/3 on27 July2027

2023 BSP

27 July 2023 84,780 3 years to 28 March 2026 27 July 2026

ShareSave

15 December 2022 1,794 N/A 1 February 2028

SIP 15 December 2022 23 N/A 15 December 2025

SIP 14 December 2023 33 N/A 14 December 2026

Kate Ferry 2023 BSP

27 July 2023 46,398 3 years to 28 March 2026 27 July 2026

ShareSave

14 December 2023 1,484 N/A 1 February 2027

SIP 14 December 2023 33 N/A 14 December 2026

1. Further details in relation to the buy-out awards granted to Jonathan Akeroyd are set out on pages 202 to 203 of the FY 2021/22 Annual Report.

2. The performance underpins for the 2022 BSP award are set out on page 231 of the FY 2022/23 Annual Report.

3. The performance underpins for the 2023 BSP award are set out on page 132.

4. Vested BSP awards may not normally be sold until five years from the date of grant, other than to meet tax liabilities.

5. On 15 December 2022, Jonathan Akeroyd was granted a ShareSave option over 1,794 shares at an option price of £16.72 per share.

6. On 14 December 2023, Kate Ferry was granted a ShareSave option over 1,484 shares at an option price of £12.50 per share.

Corporate Governance Statement | Directors’ Remuneration Report

134

Burberry Annual Report 2023/24

Director remuneration relative to employees

The table below summarises the change in each Director’s base salary/fee, benefits and bonus received for FY 2023/24, FY 2022/23,

FY 2021/22 and FY 2020/21 compared to the prior year. The regulations require disclosure of the same data for employees of the

parent company. However, Burberry Group plc does not have any employees and therefore the table below includes data in respect

of the UK employee population for reference.

Year-on-year

change (%)

FY 2020/21 FY 2021/22 FY 2022/23 FY 2023/24

Salary/

fee

Allowances

and

benefits Bonus

Salary/

fee

Allowances

and

benefits Bonus

Salary/

fee

Allowances

and

benefits Bonus

Salary/

fee

Allowances

and

benefits Bonus

Executive

Directors

Jonathan

Akeroyd – – – N/A N/A N/A 0% 17.4% N/A 3.0% 22.5% -100%

Kate Ferry – – – – – – – – – N/A N/A N/A

Non-

Executive

Directors

Gerry Murphy -5.0% -93.3% – 5.3% -21.4% – 0% -75.4% – 3.0% 712.4% –

Fabiola

Arredondo -5.0% -100% – 5.3% N/A – 0% N/A – 3.0% -5.8% –

Alessandra

Cozzani – – – – – – – – – N/A N/A N/A

Sam Fischer -5.0% -100% – 5.3% N/A – 0% 1,453.6% – 3.0% -33.2% –

Ron Frasch -5.0% -100% – 5.3% N/A – 0% 171.1% – 3.0% 64.4% –

Danuta Gray – – – N/A N/A N/A 25.1% 1,267.2% – 17.0% 71.7% –

Debra Lee -5.0% -100% – 5.3% N/A – 0% N/A – 3.0% 0.4% –

Orna

NíChionna -3.5% -66.3% – 3.6% -21.7% – -0.9% 96.2% – -10.4% 20.8% –

Antoine de

Saint-Affrique N/A N/A N/A 0% N/A – 0% 155.2% – 3.0% 0.4% –

Alan Stewart – – – – – – N/A N/A N/A 34.5% 3.7% –

Former

Non-

Executive

Directors

Matthew Key -3.5% -100% – 3.6% N/A – 0% 133.3% – 1.6% -68.7% –

UK Employees 0% 0% -7.7% 0% 0% 233.3% 4.0% 0% -48.0% 4.0% 0% -85.6%

1. The comparator group includes all UK employees. As noted above, Burberry Group plc does not have any employees and therefore this group has been chosen to align with

thelocation of the Executive Directors and with the pay ratio reporting. For the comparator group of employees, the year-on-year salary changes include the annual salary review

in July but exclude any additional changes made in the year, for example on promotion. For FY 2021/22 benefits, the maximum employer pension contribution available to the

majority of the UK workforce was increased from 6% of salary to 10% of salary with effect from 1 January 2022. The change in the value of benefits shown for the Executive

Directors reflects the market cost of the same benefits.

2. In order to provide a meaningful comparison, the figures in the table above have been calculated on a full-year equivalent basis where Directors have served for part of the year only.

3. Where a Director was appointed during a financial year, it is not possible to calculate a percentage change for them and they are shown as N/A.

4. The Executive Directors did not receive an annual bonus for FY 2019/20 and therefore it is not possible to calculate a percentage change on bonus in respect of FY 2020/21.

Jonathan Akeroyd did not receive an annual bonus for FY 2021/22 and therefore it is not possible to calculate a percentage change on bonus in respect of FY 2022/23.

5. The Directors in role at the time voluntarily agreed to waive 20% of their salary/base fee for a three-month period between April and June 2020. This is reflected in the negative

changes shown in respect of FY 2020/21 and the corresponding positive changes shown in respect of FY 2021/22.

6. The allowances and benefits figures for FY 2020/21 for Gerry Murphy and Orna NíChionna were low due to the impact of COVID-19. In order to provide a meaningful comparison,

the percentage change figure for FY 2021/22 was calculated relative to the allowances and benefits figure for FY 2019/20.

7. Allowances and benefits increased for Non-Executive Directors during FY 2022/23 due to the return of regular in-person meetings.

8. Orna NíChionna was appointed as Senior Independent Director with effect from 2 April 2022.

9. Danuta Gray replaced Orna NíChionna as Remuneration Committee Chair on 1 September 2022.

10. Alan Stewart replaced Matthew Key as Audit Committee Chair on 12 July 2023.

135

Burberry Annual Report 2023/24

CEO pay ratios

The ratios set out in the table below compare the total remuneration of the CEO (as included in the single figure table on page 130)

tothe remuneration of the median UK employee as well as the UK employees at the lower and upper quartiles. The disclosure will

build up over time to cover a rolling 10-year period.

Year Method

percentile

pay ratio

(P25)

Median pay ratio

(P50)

percentile

payratio

(P75)

FY 2023/24 Option A 44:1 33:1 21:1

FY 2022/23 Option A 153:1 116:1 73:1

FY 2021/22 Option A 225:1 167:1 105:1

FY 2020/21 Option A 92:1 71:1 44:1

FY 2019/20 Option A 68:1 48:1 31:1

FY 2018/19 Option A 170:1 127:1 82:1

Notes regarding calculation

The ratios are calculated using option A in the disclosure regulations. The employees at the lower quartile, median andupper

quartile(P25, P50 and P75, respectively) were determined based on total remuneration using a valuation methodology consistent

with that used for the CEO in the single figure table on page 130. The employees were identified based on all UK employees as at

year end. This option was selected on the basis that it provided the most accurate means of identifying the median, lower and upper

quartileemployees.

The total remuneration in respect of FY 2023/24 for the employees identified at P25, P50 and P75 is £31k, £41k and £65k, respectively.

The base salary in respect of FY 2023/24 for the employees identified at P25, P50 and P75 is £26k, £37k and £57k, respectively.

The Committee considers pay ratios as one of many reference points when considering remuneration. Throughout the Group, pay

ispositioned to be fair and market-competitive in the context of the talent market for the relevant role, fairly reflecting local market

data and other relevant benchmarks (such as the UK Living Wage). The Committee notes the limited comparability of pay ratios

across companies and sectors, given the diverse range of business models and employee population profiles which exist

acrossthemarket.

A significant proportion of the CEO’s total remuneration is delivered in variable remuneration, and particularly via long-term share

incentives. In order to drive alignment withshareholders, the value ultimately received from share incentive awards is linked to

long-term share price movement. As a result, the pay ratio is likely to be driven largely by the CEO’s incentive outcomes and may

therefore fluctuate significantly on a year-to-year basis.

The pay ratio for FY 2023/24 has decreased compared to the ratio for FY 2022/23. This is primarily driven by the fact that Jonathan

Akeroyd did not receive a bonus for FY 2023/24 and was not in role to receive a BSP award that vested in respect of FY 2023/24.

The Committee considers that the median pay ratio for FY 2023/24 and the recent trends in the pay ratios are consistent with

Burberry’s remuneration framework and reflect the variable nature of the CEO’s total remuneration. The Committee believes the pay

ratio is consistent with our pay policies in the UK.

Corporate Governance Statement | Directors’ Remuneration Report

136

Burberry Annual Report 2023/24

Relative importance of spend on pay for FY 2023/24

The table below sets out the total payroll costs for all employees over FY 2023/24 compared to total dividends payable for the year

and amounts paid to buy back shares during the year. The average number of full-time equivalent employees is also shown for context.

Relative importance of spend on pay FY 2023/24 FY 2022/23

Dividends paid during the year (total) £m 233 203

% change +15%

Amounts paid to buy back shares during the year £m 400 400

% change 0%

Payroll costs for all employees £m 572 575

% change -1%

Average number of full-time equivalent employees 9,169 8,868

% change +3%

Service agreements

The table below sets out information on service agreements for the current Executive Directors. Executive Directors are subject

toannual re-election by shareholders at each AGM of the Company.

Date of current

serviceagreement

Date employment

commenced

Notice period to and

fromthe Company

Jonathan Akeroyd 19 October 2021 15 March 2022 12 months

Kate Ferry 14 March 2023 17 July 2023 12 months

The Non-Executive Directors serve under Letters of Appointment with the Company. Non-Executive Directors may continue to serve

subject to annual re-election by shareholders at each AGM of the Company, subject to six months’ notice by either party.

137

Burberry Annual Report 2023/24

2014/15

(AA)

2014/15

(CB)

2015/16

(CB)

2016/17

(CB)

2017/18

(CB)

2017/18

(MG)

2018/19

(MG)

2019/20

(MG)

2020/21

(MG)

2021/22

(MG)

2021/22

(JA)

2022/23

(JA)

2023/24

(JA)

Total remuneration

(£’000) 157 7,508 1,894 3,508 1,091 6,330 4,078 1,618 2,245 1,205 4,428 4,289 1,347

Bonus

(%ofmaximum) – 81% 0% 0% 51% 51% 60% 0% 25% – – 59% 0%

BSP (% of maximum) – – – – – – – – – – – – –

Legacy incentive plans (no longer in operation):

ESP (% of maximum) – – – – 5% – 25% 0% 5.5% – – – –

CIP

(% of maximum) – 75% 0% 0% – – – – – – – – –

RSP (% of maximum) – – 0% 19.3% – – – – – – – – –

Exceptional award

(% of maximum) – – – 61.7% 59.9% – – – – – – – –

1. Angela Ahrendts (AA, CEO to 30 April 2014), Christopher Bailey (CB, Chief Creative Officer and CEO from 1 May 2014 to 4 July2017), Marco Gobbetti (MG, CEO from 5 July 2017

to31 December 2021), Jonathan Akeroyd (JA, CEO from 15 March 2022).

2. The CIP was the Burberry Co-Investment Plan, a long-term incentive plan under which the final performance-based awards were granted in 2014. Details of this plan can be found

in the relevant Directors’ Remuneration Reports.

3. The exceptional award for Christopher Bailey relates to vesting of his 2014 exceptional share award as previously disclosed.

£177

(77% increase)

£110

(10% increase)

100

150

200

250

300

Burberry FTSE 100

2014 2015 2016 2017 2018 2019 2020 2021 2022 20242023

Ten-year performance graph and Chief Executive Officer’s remuneration

The following graph shows the Total Shareholder Return (TSR) for Burberry Group plc compared to the FTSE 100 Index assuming

£100 was invested on 31 March 2014. The FTSE 100 Index has been selected as the comparator because Burberry is a constituent

ofthe index. Data is presented on a spot basis and sourced from Datastream. Thetable below shows the total remuneration earned

by the incumbent CEO over the same 10-year period, along withthe percentage of maximum opportunity earned in relation to each

type of incentive. The total amounts are basedon the same methodology as used for the single figure of total remuneration for

FY2023/24 on page 130.

Corporate Governance Statement | Directors’ Remuneration Report

138

Burberry Annual Report 2023/24

Non-Executive Director remuneration (audited)

The table below sets out the single figure of total remuneration received or receivable by the Non-Executive Directors in respect

ofFY 2023/24 (and the prior financial year).

Year to 30 March 2024 Year to 1 April 2023

Fees

£’000

Benefits and

allowances

£’000

Total

£’000

Fees

£’000

Benefits and

allowances

£’000

Total

£’000

Non-Executive Directors

Gerry Murphy 436 9 445 423 1 424

Fabiola Arredondo 82 19 101 80 20 100

Alessandra Cozzani

48 13 61 – – –

Sam Fischer 82 21 103 80 31 111

Ron Frasch 82 36 118 80 22 102

Danuta Gray

117 5 122 100 3 103

Debra Lee 82 20 102 80 20 100

Orna NíChionna

102 3 105 114 3 117

Antoine de Saint-Affrique 82 19 101 80 19 99

Alan Stewart

107 2 109 47 2 49

Former Non-Executive Directors

Matthew Key

32 1 33 115 3 118

1. Fees include the base fee and additional Committee fees in line with the existing Directors’ Remuneration Policy.

2. For Non-Executive Directors other than the Chair, allowances include an attendance allowance for each meeting attended outside their country or territory of residence.

Non-Executive Directors appointed before 11 May 2023 currently receive £2,000 per meeting. Non-Executive Directors appointed from 11 May 2023 currently receive £2,000 for

meetings that involve inter-continental travel and £1,000 for other meetings outside their country or territory of residence. Allowances also include the reimbursement of certain

expenses incurred by the Non-Executive Directors in the performance of their duties, which are deemed by HM Revenue & Customs (HMRC) to be subject to UK income tax.

Anytax liabilities arising on the reimbursement of these costs will be settled by the Company. Amounts disclosed have been estimated and have been grossed up at the

appropriate tax rate, where necessary.

3. Fees for Alessandra Cozzani relate to the period from 1 September 2023 when she was appointed to the Board.

4. Fees for Danuta Gray in relation to FY 2022/23 include the Remuneration Committee Chair fee from 1 September 2022.

5. Fees for Orna NíChionna in relation to FY 2022/23 include the Remuneration Committee Chair fee for the period 2 April to 31 August 2022 and the Senior Independent Director fee.

6. Fees for Alan Stewart in relation to FY 2022/23 relate to the period from 1 September 2022 when he joined the Board and in relation to FY 2023/24 include the Audit Committee

Chair fee from 12 July 2023.

7. Fees for Matthew Key in relation to FY 2023/24 relate to the period to 12 July 2023 when he stepped down from the Board and include the Audit Committee Chair fee to this date.

Summary of Non-Executive Director fees for FY 2024/25

Following a review, the Chair’s fee and the base fee for the Non-Executive Directors will remain unchanged with effect from 1 July 2024.

The fee structure for the Non-Executive Directors for FY 2024/25 is set out in the table below.

Fee level

£’000

Chair

440

Non-Executive Director 82.8

Senior Independent Director 20

Audit Committee Chair 35

Remuneration Committee Chair 35

Attendance allowance

Up to 2

1. The Chair is not eligible for Committee-related fees or attendance allowances.

2. For Non-Executive Directors other than the Chair, allowances include an attendance allowance for each meeting attended outside their country or territory of residence.

Non-Executive Directors appointed before 11 May 2023 currently receive £2,000 per meeting. Non-Executive Directors appointed from 11 May 2023 currently receive £2,000

formeetings that involve inter-continental travel and £1,000 for other meetings outside their country or territory of residence.

3. Expenses incurred in the normal course of business are reimbursed and, as these are considered by HMRC to be taxable benefits, thetax due on these will also be met

bytheCompany.

139

Burberry Annual Report 2023/24

Non-Executive Director shareholdings (audited)

The table below summarises the total interests of the Non-Executive Directors (and their connected persons) in ordinary shares

ofBurberry Group plc asat30 March 2024 (or as at the date of stepping down, if earlier).

In line with the shareholding guideline, Non-Executive Directors hold shares with a market value at acquisition of £6,000 for each

year of their appointment. As at 30 March 2024 (or as at the date of stepping down, if earlier), all of the Non-Executive Directors who

had served more than one year since their appointment had fulfilled this guideline.

Total number of

shares owned

Non-Executive Directors

Gerry Murphy 15,000

Fabiola Arredondo 30,000

Alessandra Cozzani 0

Sam Fischer 3,000

Ron Frasch 2,738

Danuta Gray 3,000

Debra Lee 1,475

Orna NíChionna 3,067

Antoine de Saint-Affrique 1,100

Alan Stewart 2,226

Former Non-Executive Directors

Matthew Key 9,040

There have been no changes in the period up to and including 14 May 2024.

Remuneration Committee in FY 2023/24

Committee membership

Danuta Gray, Fabiola Arredondo, Sam Fischer, Ron Frasch and Orna NíChionna served as members of the Committee throughout the

year ended 30 March 2024. Matthew Key served as a member of the Committee until he stepped down from the Board on 12 July 2023.

Alan Stewart served as a member of the Committee from 12 July 2023.

Committee remit

The Committee’s terms of reference are published on Burberryplc.com.

In addition to setting the remuneration of the Executive Directors, the Committee continues to directly oversee theremuneration

arrangements for the Executive Committee, the Company Secretary and other members of senior management within its remit

asdetermined from time to time.

Corporate Governance Statement | Directors’ Remuneration Report

140

Burberry Annual Report 2023/24

Summary of meetings

The Committee typically meets four times a year. During FY 2023/24, the Committee held four scheduled meetings. Other ad hoc

discussions were held as required. Details of attendance at Committee meetings are set out on page 126. If any Committee members

are unable to attend a meeting, they are given the opportunity to discuss any of the agenda items with the Committee Chair in advance

of the meeting. The agenda items discussed at the four scheduled meetings are summarised below. Other Committee matters, including

the remuneration arrangements for Executive Committee members and others within the Committee’s remit, were determined

bytheCommittee outside the scheduled meetings.

May 2023

• Update on external environment from independent advisors

• FY 2022/23 incentive outcomes

• FY 2023/24 performance targets and incentive awards

• BSP 2023 awards, including underpins for Executive Directors

• FY 2023/24 senior executive remuneration

• Chair fees for FY 2023/24

• Approval of Directors’ Remuneration Report FY 2022/23 and 2023 Directors’ Remuneration Policy

• Update on share plan dilution

• Actions following FY 2022/23 Committee Effectiveness review

November 2023

• Update on external environment from independent advisors

• 2023 AGM season shareholder and proxy body feedback

• Incentives performance update

• All-employee share plan awards 2023

• Committee annual planner

February 2024

• Update on external environment from independent advisors

• Incentives performance update

• Overview of broader employee reward and proposed engagement with the Global Workforce

Advisory Forum

• UK Gender and Ethnicity Pay Gap Report for 2023/24 reporting year

• Update on Executive Committee members’ shareholding guideline compliance

• Committee areas of focus for FY 2023/24

March 2024

• Update on external environment from independent advisors

• Incentives performance update

• FY 2024/25 annual bonus plan proposals and proposed 2024 BSP awards

• Approach to Directors’ Remuneration Report FY 2023/24 and shareholder engagement strategy

• Feedback from the March 2024 meeting of the Global Workforce Advisory Forum

• Review of Committee’s terms of reference

Regular attendees at Committee meetings include the Chair of the Board, the CEO, the Company Secretary, the Chief People Officer,

the VP Head of Reward and representatives of the Committee’s advisors. Other members of the senior management team may attend

Committee meetings from time to time. No one is present when their own remuneration is being discussed.

141

Burberry Annual Report 2023/24

Advisors to the Committee

Deloitte was appointed as an independent advisor to the Committee in 2017 and reappointed in 2021 following a competitive tender

process. Deloitte is a founding member of the Remuneration Consultants’ Group (RCG), which is responsible for the development

and maintenance of the voluntary Code of Conduct that clearly sets out the role of executive remuneration consultants and the

professional standards by which they advise their clients. Fees are charged on a time and expenses basis and totalled £139,500

(plusVAT) during FY 2023/24. During the yearDeloitte also provided other consulting services (including mergers and acquisitions

and due diligence advice, technology implementation and analytics), tax compliance and advisory services. TheCommittee is satisfied

that advice received from Deloitte during the year was objective and independent and that all individuals who provided remuneration

advice to the Committee had no connections with Burberry or its Directors that may impair their independence. The Committee

reviewed the potential for conflicts of interest and judged that there wereappropriate safeguards against such conflicts.

Linklaters LLP also provided advice to the Committee in relation to the operation of the Company’s share plans, employment law

considerations and compliance with legislation.

Remuneration voting results

The table below shows the results of the latest remuneration-related shareholder votes on the Directors’ Remuneration Report

andthe Directors’ Remuneration Policy (both at the 2023 AGM).

AGM voting results Votes for Votes against Votes withheld

To approve the Directors’ Remuneration Report for the year ended

1 April 2023

285,752,634

(95.60%)

13,152,786

(4.40%) 18,947

To approve the Directors’ Remuneration Policy 271,202,999

(91.02%)

26,745,859

(8.98%) 975,510

The Committee and I continue to value the input of shareholders to help inform our thoughts on executive remuneration at Burberry.

Going forward, as part of our commitment to build on the constructive dialogue we have established, we look forward to continuing

to engage with you and receiving your support at the AGM in July.

This report has been approved by the Board and signed on its behalf by:

Danuta Gray

Chair, Remuneration Committee

14 May 2024

Corporate Governance Statement | Directors’ Remuneration Report

142

Burberry Annual Report 2023/24

Corporate Governance Statement | Directors’ Report

DIRECTORS’ REPORT

The Directors present their Annual Report and the audited

consolidated Financial Statements of the Company for the year

ended 30 March 2024. For the purposes of the Companies Act

2006, the following are incorporated by reference and shall be

deemed to form part of this Directors’ Report:

• Strategic Report on pages 2 to 92

• Corporate Governance Statement, which includes the Board

of Directors, the Corporate Governance Report and the

Directors’ Remuneration Report, on pages 93 to 146

• Global GHG emissions disclosure on page 43

The Directors consider that the Annual Report and Accounts,

taken as a whole, provide a fair, balanced and understandable

assessment of the Group’s business as necessary for

shareholders and wider stakeholders to assess:

• development and performance during the year

• its position at the end of the financial year

• strategy

• likely developments

• any principal risks and uncertainties

• how we have engaged with our people and stakeholders

For the purposes of compliance with the Disclosure Guidance

and Transparency Rules 4.1.5R(2) and 4.1.8R, the required

content of the management report can be found in the Strategic

Report together with sections of the Annual Report incorporated

by reference.

Share capital

Details of the issued share capital, together with details of

movement in the issued share capital of the Company during

the year, are shown in note 25 to the Financial Statements.

Thisis incorporated by reference and deemed to be part of this

report. The Company has one class of ordinary share of 0.05

pence each (Share), which carries no right to fixed income.

EachShare carries the right to one vote at general meetings

ofthe Company. The Shares are listed on the Official List and

traded on the London Stock Exchange. No person has any

special rights of control over the Company’s share capital

andall issued shares are fullypaid.

As at 30 March 2024, the Company had 363,815,743 Shares in

issue, including 5,232,720 held in treasury. At the AGM in 2023,

shareholders approved resolutions to allot Shares up to an

aggregate nominal value of £63,036, and to allot Shares for

cash other than pro rata to existing shareholders. In order to

retain maximum flexibility, resolutions will be proposed to

shareholders at this year’s AGM to renew these authorities but

shareholders will be asked to approve an additional resolution

which seeks authority to issue up to an additional 5% of issued

share capital other than pro rata to existing shareholders in

connection with an acquisition or specified capital investment.

Substantial shareholdings

As at 30 March 2024, the Company had been notified under

Rule 5 of the Disclosure Guidance and Transparency Rules

ofthe following major interests in its issued share capital:

Number of

Shares held

% of total

votingrights

BlackRock Inc. 27,729,908 6.62

Lindsell Train Limited 21,928,267 5.00

Massachusetts Financial

Services Company 20,668,065 5.10

Schroders plc 19,361,546 5.10

1. As at the date of notification to the Company.

Since 30 March 2024, the Company has received no further

notifications of major interests in its issued share capital.

Interests in own Shares

Details of the Group’s interests in its own Shares are set out

innote 25 to the Financial Statements.

Share buyback

In line with our capital allocation priorities and the authority

granted by the shareholders at the AGM in 2022 and 2023,

welaunched a £400 million share buyback programme in

June2023, which we completed in two tranches: June 2023

toSeptember 2023 and September 2023 to October 2023.

Intotal, 20,504,089 Shares with a nominal value of 0.05p each

were purchased and cancelled. Further details of the share

buyback can be found in note 25 to the Financial Statements.

The authority granted by shareholders at the 2023 AGM will

remain in place until a new authority is granted by shareholders

at the 2024 AGM, or 12 October 2024, whichever is the earlier.

No further purchases of Shares by the Company have been

made since the programme described above was completed

and the date of this report.

Transfer of Shares

There are no specific restrictions on the size of holding or

onthe transfer of Shares. The Directors are not aware of any

agreements between holders of Shares that may result in

restrictions on the transfer of securities or voting rights.

TheDirectors have no current plans to issue Shares other than

in connection with employee share plans.

Voting

Each Share carries one vote at general meetings of the

Company. Any Shares held in treasury have no voting rights.

Ashareholder entitled to attend, speak and vote at a general

meeting may exercise their right to vote in person, by proxy, or,

in relation to corporate members, by corporate representatives.

To be valid, notification of the appointment of a proxy must be

received not less than 48 hours before the relevant general

meeting at which the person named in the Form of Proxy proposes

to vote. The Directors may in their discretion determine that, in

calculating the 48-hour period, no account be taken of any part

of a day which is not a working day. Employees who participate

in the Share Incentive Plan (SIP) whose Shares remain in the

Burberry Group plc SIP Trust (SIP Trust) may give directions to

the trustees to vote on their behalf by way of a Form of Direction.

Dividend

The Directors recommend that a final dividend of 42.7p per

Share (FY 2022/23: 44.5p) in respect of the year ended

30 March 2024 be paid on 2 August 2024 to those persons

onthe Register of Members as at 28 June 2024.

An interim dividend of 18.3p per Share was paid to shareholders

on 26 January 2024 (FY 2022/23: 16.5p). This will make a total

dividend of 61.0p per Share in respect of the financial year to

30 March 2024. The aggregate dividends paid and recommended

in respect of the year to 30 March 2024 total £217 million

(FY2022/23: £230 million).

The Burberry Group plc ESOP Trust has waived all dividends

and future dividends payable by the Company in respect of the

Burberry Shares it holds until the Company is notified otherwise.

In addition, the SIP Trust has waived all dividends payableby

the Company during FY 2023/24 in respect of unappropriated

Burberry Shares it holds.

143

Burberry Annual Report 2023/24

Corporate Governance Statement | Directors’ Report

Revenue and profit

Revenue from continuing business during the year amounted

to£2,968 million (FY 2022/23: £3,094 million). The adjusted

operating profit for the year was £418 million (FY 2022/23:

£634 million).

The profit for the year attributable to equity holders of the

Company was £270 million (FY 2022/23: £490 million), a year

onyear decrease of 45% predominantly related to the reduction

of 170 bps in gross margin, an increase of 7% in operating costs

and an increase in the tax rate to 29.2%.

Financial instruments and risks

The Group’s financial risk management objectives and policies

are set out within note 27 of the Financial Statements. Note 27

also details the Group’s exposure to foreign exchange, share

price, interest, credit, capital and liquidity risks. This note is

incorporated by reference and deemed to form part of this report.

Going concern and viability

The going concern statements for the Group and the Company

are set out on pages 166 and 215 of the Financial Statements

and are incorporated by reference and shall be deemed to be

part of this report. The Directors’ assessment of the prospects

and viability of the Group over the next three years is set out in

the Strategic Report on pages 91 and 92. The Risk and Viability

Report can be found on pages 83 to 92.

The Directors considered it appropriate to adopt the going

concern basis of accounting when preparing the financial

statements.

Significant contracts – change of control

Pursuant to the Companies Act 2006, the Directors disclose

that, in the event of a change of control, the Company’s

borrowings under the Group’s currently undrawn £300 million

Revolving Credit Facility, dated 26 July 2021, could

becomerepayable.

On 3 April 2017, Burberry entered into an exclusive licensing

agreement with Coty pursuant to which Coty develops,

manufactures, markets, distributes and sells Burberry Beauty

products. The agreement took effect in October 2017, from

which time ongoing royalty payments have been payable to

Burberry. Pursuant to the Companies Act 2006, the Directors

disclose that a change in control of Burberry will, in limited

circumstances, result in Coty having a right of termination

ofthelicence agreement.

A small number of leases contain certain rights that may entitle

landlords to terminate or approve continuation of the leases

inthe event that a Burberry subsidiary is transferred out of the

Group or there is a change of control of Burberry Group plc;

none of these is considered to be significant in terms of the

potential impact on the business as a whole.

There are no arrangements between the Company and its

Directors or employees providing for compensation for loss

ofoffice or employment that occurs specifically because of a

takeover, merger or amalgamation. There are provisions in the

Company’s share plans, which could result in options or awards

vesting or becoming exercisable on a change of control. For

further information on the change of control provisions in the

Company’s share plans refer to the Directors’ Remuneration

Policy, which was approved by shareholders at the AGM on

12 July 2023. This is set out in full in the Directors’ Remuneration

Report, which can be found in the Annual Report 2022/23

onBurberryplc.com.

Independent auditor

In accordance with section 418(2) of the Companies Act 2006,

each of the Company’s Directors in office at the date of this

report confirms that:

• so far as the Director is aware, there is no relevant audit

information of which the Company’s external auditor is unaware

• the Director has taken all appropriate steps to ensure they

are aware of any relevant audit information, and to establish

that the Company’s external auditor is aware of that information

The Group’s current external auditor is EY and note 7 of

theFinancial Statements states their fees both for audit and

non-audit work. EY was appointed as the external auditor of

theCompany at the 2020 AGM following an independent audit

tender. A resolution to re-appoint EY as external auditor to the

Company for FY 2024/25 will be proposed at the 2024 AGM.

The Independent Auditor’s Report starting on page 149 sets out

the information contained in the Annual Report which has been

audited by the external auditor.

Employee share plans and share ownership

The Company is committed to employee share ownership

withtwo all-employee share plans available to employees at all

levels of the organisation. Further details of these share plans

are set out in the Directors’ Remuneration Report on page 129.

The Group intends to operate these all-employee share plans

during FY 2024/25 to grant awards of free Burberry Shares

(orequivalent cash-based awards as appropriate) to all eligible

employees globally, and to invite eligible employees, where

possible, to participate in the ShareSave scheme. The Directors

review the operation of these plans to ensure that they effectively

support the Group’s strategy and encourage greater alignment

by employees with the Group’s performance. Detailsof employee

share plans are set out in note 28 to the FinancialStatements.

Employee engagement

Burberry is an open and inclusive employer that strives to

openspaces for our people so they can express their creativity

and grow both personally and professionally. Our colleagues

represent 132 nationalities across 33 countries and territories

and we are proud of the diversity of our people and the rich

variety of skills and experiences they bring to our brand from

the many cultures and backgrounds they represent. We continue

to focus on evolving strategies for attracting and retaining

diverse top talent within the business that promote our cultural

values and ensure diverse representation across the business.

Further details about our people and our commitment to

diversity, equity and inclusion can be found on pages 48 to 51.

Pages 80 to 82 demonstrate how the Directors have had regard

towards employee interests and the principal decisions taken

by the Company during the financial year.

144

Burberry Annual Report 2023/24

Stakeholder engagement

Reflecting the importance of our stakeholders, an explanation

ofthe steps taken by the Directors to foster business relationships

with partners, including suppliers, customers and other

stakeholders, is set out on pages 80 to 82.

Global GHG emissions

The Directors understand they have a responsibility to consider

the impact on the environment and the likely consequences

ofany business decisions in the long term. Disclosure is in

linewith the FCA’s requirements for climate-related financial

disclosures and consistent with the TCFD recommendations

asset out on pages 66 to 79.

Health and safety

The Company has a global Health and Safety Policy approved by

the CEO on behalf of the Board. A safety-first approach is firmly

embedded in Burberry’s values and this approach was strongly

reinforced and measured across all our operational activities.

Governance of our Health and Safety strategy is maintained

through a Global Health and Safety Committee, which is chaired

by the General Counsel. Health and safety issues are also

considered by the Risk Committee and Audit Committee.

Eachregion has a local health and safety committee which

reports to the regional president. These committees assist with

the implementation of our Health and Safety strategy and help

to ensure all local regulatory and Burberry standards are

achieved and maintained.

Strategic direction on health and safety matters is provided

bythe Director of Health and Safety who is supported by

aglobal team. In line with industry best practice, our health

andsafety goals and objectives are set each year to continually

analyse our performance and support a process for

continuousimprovement.

Our unannounced global assurance audit programme continues

to measure health and safety performance within our managed

operations at a set frequency and tracks improvement actions

and risk reduction strategies through to closure.

Political donations

The Company did not make any political donations during the

year in line with its policy (FY 2022/23: £nil). In keeping with the

Group’s approach in prior years, shareholder approval isbeing

sought at the forthcoming AGM, as a precautionary measure,

forthe Company and its subsidiaries to make donations and/or

incur expenditure, which may be construed aspolitical by the

wider definition of that term included intherelevant legislation.

Further details are provided in the Notice of Meeting (the Notice).

Directors

The names and biographical details of the Directors as at

thedate of this report are set out on pages 95 to 99 and are

incorporated by reference into this report. With regard to the

appointment and resignation of Directors, the Company follows

the Code, and is governed by its Articles of Association, the

Companies Act 2006 and related legislation. At the 2024 AGM,

all Directors, with the exception of Debra Lee, will stand for

election or re-election as appropriate. The Notice sets out the

contributions and reasons for the election or re-election of each

Director. The service agreements of the Executive Directors and

the letters of appointment of the Non-Executive Directors are

available for inspection at the Company’s registered office on

request. Brief details of these are also included on page 137

ofthe Directors’ Remuneration Report. For information on the

Directors’ professional development, see page 110.

Directors’ Share interests

The interests in shares of the Directors holding office as at

30 March 2024 are shown within the Directors’ Remuneration

Report on pages 125 to 142. There were no changes to the

beneficial interests of the Directors between the period

30 March 2024 and 14 May 2024.

Directors’ powers and responsibilities

Subject to the Company’s Articles of Association, the Companies

Act 2006 and any directions given by special resolution, the

business of the Group will be managed by the Board, which

mayexercise all the powers of the Group, including powers

relatingto the issue and/or buying back of Shares by the Group

(subjectto any statutory restrictions or restrictions imposed by

shareholders at the AGM).

Directors’ insurance and indemnities

The Company maintains Directors’ and Officers’ liability

insurance, which gives cover for legal actions brought against

its Directors and Officers. In accordance with section 236

oftheCompanies Act 2006, qualifying third-party indemnity

provisions are in place for the Directors in respect of liabilities

incurred as a result of their office, to the extent permitted by

law. Both the insurance and indemnities applied throughout the

financial year ended 30 March 2024, and through to the date

ofthis report.

Branches

In accordance with the Companies Act 2006, the Group

discloses below the subsidiary companies that have branches

outside the UK:

• Burberry Limited: Hong Kong S.A.R., China and Republic ofKorea

• Burberry Brasil Comércio de Artigos de Vestuário

eAcessórios Ltda: Brazil

• Burberry Saudi Company Limited: Kingdom of Saudi Arabia

• Burberry Qatar W.L.L.: Qatar

• Burberry (Spain) Retail S.L.: Portugal

• Burberry (Shanghai) Trading Co., Ltd: Mainland China

Annual General Meeting (AGM)

The AGM of the Company will be held at 10:30am on Tuesday

16 July 2024 at Conrad London St. James, 22-28 Broadway,

London, SW1H 0BH. The Notice of this year’s AGM is available

toview on the Company’s website at Burberryplc.com.

The Directors consider that each of the proposed resolutions

tobe considered at the AGM is in the best interests of the

Company and its shareholders, and is most likely to promote the

success of the Company for the benefit of its shareholders as a

whole. The Directors unanimously recommend that shareholders

vote in favour of each of the proposed resolutions, as the

Directors intend to do in respect of their own shareholdings.

145

Burberry Annual Report 2023/24

Corporate Governance Statement | Directors’ Report

Amendments to Articles of Association

The Company’s Articles of Association were adopted at the 2021 AGM. No changes to the Articles of Association are being proposed

at this year’s AGM.

Disclosures pursuant to Listing Rule 9.8.4

Listing Rule Description of Listing Rule Reference

9.8.4(12) and (13) Waivers of dividends See Dividends paragraph on page 143

The Strategic Report from pages 2 to 92 and Directors’ Report from pages 143 to 146 have been approved by the Board on14 May 2024

in accordance with the Companies Act2006.

By order of the Board

Gemma Parsons

Company Secretary

14 May 2024

Burberry Group plc

Registered Office: Horseferry House, Horseferry Road, LondonSW1P 2AW

Registered in England and Wales

Registered number: 03458224

146

Burberry Annual Report 2023/24

FINANCIAL STATEMENTS

Statement of Directors’ Responsibilities 148

Independent Auditor’s Report to the Members

of Burberry Group plc

149

Group Income Statement 160

Group Statement of Comprehensive Income 161

Group Balance Sheet 162

Group Statement of Changes in Equity 163

Group Statement of Cash Flows 164

Notes to the Financial Statements 165

Five-Year Summary 209

Company Balance Sheet 212

Company Statement of Changes in Equity 213

Notes to the Company Financial Statements 214

Shareholder Information 221

Burberry Annual Report 2023/24

147

Financial Statements | Statement of Directors’ Responsibilities

STATEMENT OF DIRECTORS’ RESPONSIBILITIES

The Directors are responsible for preparing the Annual Report, the Directors’ Remuneration Report and the financial statements in

accordance with applicable laws and regulations.

Company law requires the Directors to prepare financial statements for each financial year. Under that law the Directors have

prepared the Group consolidated financial statements in accordance with the UK-adopted International Accounting Standards and

the Company financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom

Accounting Standards, comprising FRS 101 ‘Reduced Disclosure Framework’ and applicable law). Under company law the Directors

must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the

Group and the Company and of the profit or loss of the Group and the Company for that year. In preparing these financial statements

the Directors are required to:

• select suitable accounting policies and then apply them consistently;

• state whether applicable UK-adopted International Accounting Standards have been followed for the Group financial statements

and United Kingdom Accounting Standards, comprising FRS 101, have been followed for the Company financial statements,

subject to any material departures disclosed and explained in the Group and parent Company financial statements respectively;

• make judgements and accounting estimates that are reasonable and prudent;

• present information, including accounting policies, in a manner that provides relevant, reliable, comparable and understandable

information; and

• prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Group and Company will

continue in business.

The Directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Group and

Company’s transactions and disclose with reasonable accuracy at any time the financial position of the Group and Company

and enable them to ensure that the financial statements and the Directors’ Remuneration Report comply with the Companies

Act 2006. They are also responsible for safeguarding the assets of the Company and the Group and hence for taking reasonable

steps for the prevention and detection of fraud and other irregularities.

The Directors are responsible for the maintenance and integrity of the Company’s website. Legislation in the United Kingdom

governing the preparation and dissemination of financial statements may differ from legislation in other jurisdictions.

The Directors consider that the Annual Report, taken as a whole, is fair, balanced and understandable and provides the information

necessary for shareholders to assess the Group and the Company’s position and performance, business model and strategy.

Each of the Directors, whose names and functions are listed on pages 157 to 162 confirm that, to the best of their knowledge:

• the Company financial statements, which have been prepared in accordance with United Kingdom Generally Accepted Accounting

Practice (United Kingdom Accounting Standards, comprising FRS 101 ‘Reduced Disclosure Framework’, and applicable law), give a

true and fair view of the assets, liabilities, financial position and profit of the Company;

• the Group financial statements, which have been prepared in accordance with the UK-adopted International Accounting

Standards, give a true and fair view of the assets, liabilities, financial position and profit of the Group; and

• the Strategic Report includes a fair review of the development and performance of the business and the position of the Group and

the Company, together with a description of the principal risks and uncertainties that it faces.

These statements were approved by the Board on 14 May 2024 and signed on its behalf by:

Jonathan Akeroyd

Chief Executive Officer

148

Burberry Annual Report 2023/24

Financial Statements | Independent Auditor’s Report to the Members of Burberry Group plc

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS

OF BURBERRY GROUP PLC

Opinion

In our opinion:

• Burberry Group plc’s Group financial statements and Company financial statements (the “financial statements”) give a true and fair

view of the state of the Group’s and of the Company’s affairs as at 30 March 2024, and of the Group’s profit for the 52-week

period then ended;

• the Group financial statements have been properly prepared in accordance with UK-adopted International Accounting Standards;

• the Company financial statements have been properly prepared in accordance with United Kingdom Generally Accepted

Accounting Practice; and

• the financial statements have been prepared in accordance with the requirements of the Companies Act 2006.

We have audited the financial statements of Burberry Group plc (the ‘Company’) and its subsidiaries (the ‘Group’) for the 52-week

period ended 30 March 2024 which comprise:

Group Company

Balance sheet as at 30 March 2024 Balance sheet as at 30 March 2024

Income statement for the 52-week period then ended Statement of changes in equity for the 52-week period

then ended

Statement of comprehensive income for the 52-week period

then ended

Related notes A to M to the financial statements, including a

summary of material accounting policies

Statement of changes in equity for the 52-week period

then ended

Statement of cash flows for the 52-week period then ended

Related notes 1 to 32 to the financial statements, including a

summary of material accounting policies

The financial reporting framework that has been applied in the preparation of the Group financial statements is applicable law and

UK-adopted International Accounting Standards. The financial reporting framework that has been applied in the preparation of the

Company financial statements is applicable law and United Kingdom Accounting Standards, including FRS 101 “Reduced Disclosure

Framework” (United Kingdom Generally Accepted Accounting Practice).

Basis for opinion

We conducted our audit in accordance with International Standards on Auditing (UK) (ISAs (UK) and applicable law. Our responsibilities

under those standards are further described in the Auditor’s responsibilities for the audit of the financial statements section of our

report. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

Independence

We are independent of the Group and Company in accordance with the ethical requirements that are relevant to our audit of the

financial statements in the UK, including the FRC’s Ethical Standard as applied to listed public interest entities, and we have fulfilled

our other ethical responsibilities in accordance with these requirements.

The non-audit services prohibited by the FRC’s Ethical Standard were not provided to the Group or the Company and we remain

independent of the Group and the Company in conducting the audit.

149

Burberry Annual Report 2023/24

Financial Statements | Independent Auditor’s Report to the Members of Burberry Group plc

Conclusions relating to going concern

In auditing the financial statements, we have concluded that the directors’ use of the going concern basis of accounting in the

preparation of the financial statements is appropriate. Our evaluation of the directors’ assessment of the Group and Company’s

ability to continue to adopt the going concern basis of accounting included:

• In conjunction with our walkthrough of the Group’s financial statement close process, we confirmed our understanding of

management’s going concern assessment process and engaged with management early to understand and assess the key

assumptions made in their assessment.

• We checked the logic and arithmetical integrity of management’s going concern model that includes the cash forecasts for the

going concern assessment period covering the period up to 27 September 2025.

• We considered the appropriateness of the revenue and operating expense assumptions used to calculate the cash forecasts under

base case and severe but plausible case scenarios. In light of challenging trading conditions, we specifically challenged

management’s plausible downside case scenario to assess if it was sufficiently severe for the going concern assessment.

• We reviewed the Group’s debt agreements for any conditions precedent outside of management’s control and also reviewed

forecast compliance with covenant requirements in either the base or severe but plausible downside case scenarios during the

going concern assessment period.

• We agreed the 30 March 2024 cash and cash equivalents balance included in the going concern assessment to the Group’s year

end cash and cash equivalents balance.

• We assessed the reasonableness of the cashflow forecasts included in the going concern assessment by analysing management’s

historical forecasting accuracy and understanding the potential impact of principal risks such as geopolitical instability, global

consumer demand and the impact of climate change reflected in the forecasts.

• We evaluated the key assumptions by searching for contrary evidence to challenge these assumptions, including third party sector

forecasts and analyst expectations. Further, we tested these assumptions for consistency with the budget approved by the Board.

• We also challenged the measurement and completeness of the downside scenario modelled by management, whether the risks

considered are sufficiently severe, and how these compare with the principal risks and uncertainties of the Group.

• We considered the mitigating factors available and not included in the severe but plausible downside scenario that are within

control of the Group. This included review of the Group’s non-operating cash outflows and evaluating the Group’s ability to control

these outflows as mitigating actions if required.

• We reviewed the borrowings of the Group and noted that management include the repayment of the sustainability bond without

refinancing in the severe but plausible scenario as the bond is repayable within the going concern period.

• We considered whether the Group’s forecasts in the going concern assessment were consistent with other forecasts used by the

Group in its accounting estimates, including goodwill impairment, retail store impairment and deferred tax asset recognition.

• We performed reverse stress testing to identify the magnitude of decline in revenue that would lead to the Group utilising all

liquidity during the going concern assessment period and we have considered the likelihood of such a decline.

• We reviewed activity in the subsequent events period to assess for contrary indicators.

• We reviewed the Group’s going concern disclosures included in the Annual Report to assess that they were accurate, sufficiently

detailed and in conformity with the reporting standards.

We observe that in management’s base case and severe but plausible downside scenario, there is headroom without taking the

benefit of identified mitigations.

Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that,

individually or collectively, may cast significant doubt on the Group and Company’s ability to continue as a going concern for a period

up to 27 September 2025.

In relation to the Group and Company’s reporting on how they have applied the UK Corporate Governance Code, we have nothing

material to add or draw attention to in relation to the Directors’ statement in the financial statements about whether the Directors

considered it appropriate to adopt the going concern basis of accounting.

Our responsibilities and the responsibilities of the Directors with respect to going concern are described in the relevant sections of

this report. However, because not all future events or conditions can be predicted, this statement is not a guarantee as to the Group

and the Company’s ability to continue as a going concern.

150

Burberry Annual Report 2023/24

Financial Statements | Independent Auditor’s Report to the Members of Burberry Group plc

Overview of our audit approach

Audit scope

We performed an audit of the complete financial information of four components and audit procedures on

specific balances for a further four components.

The components where we performed full or specific audit procedures accounted for 79% of profit before

tax (on an absolute basis), 77% of Revenue and 75% of Total assets.

Key audit matters

Valuation of finished goods inventory provision.

Impairment and impairment reversals of retail store right-of-use assets and related property,

plant and equipment.

Provision for uncertain tax positions.

Materiality

Overall Group materiality of £19.2m which represents 5% of profit before tax.

An overview of the scope of the Company and Group audits

Tailoring the scope

Our assessment of audit risk, our evaluation of materiality and our allocation of performance materiality determine our audit scope

for each component within the Group. Taken together, this enables us to form an opinion on the consolidated financial statements.

We take into account size, risk profile, the organisation of the Group and effectiveness of Group-wide controls, changes in the

business environment, the potential impact of climate change and other factors such as recent internal audit results when assessing

the level of work to be performed at each component.

In assessing the risk of material misstatement to the Group financial statements, and to ensure we had adequate quantitative

coverage of significant accounts in the financial statements, we selected eight components covering entities within the

United Kingdom, Mainland China, Japan, South Korea, the United States and Hong Kong S.A.R., China, which represent the principal

business units within the Group.

Of the eight components selected, we performed an audit of the complete financial information of four components (“full scope

components”) which were selected based on their size or risk characteristics. For the remaining four components (“specific scope

components”), we performed audit procedures on specific accounts within that component that we considered had the potential for

the greatest impact on the significant accounts in the financial statements either because of the size of these accounts or their

risk profile.

The reporting components where we performed audit procedures accounted for 79% of the Group’s profit before tax (on an absolute

basis) (2023: 91% of the Group’s profit before tax on an absolute basis), 77% (2023: 78%) of the Group’s revenue and 75% (2023: 80%)

of the Group’s total assets. For the current year, the full scope components contributed 79% of the Group’s profit before tax (on an

absolute basis) (2023: 91% of Group’s profit before tax on an absolute basis), 57% (2023: 74%) of the Group’s revenue and 57%

(2023: 77%) of the Group’s total assets. The specific scope components contributed 20% (2023: 4%) of the Group’s revenue and 18%

(2023: 3%) of the Group’s total assets. The audit scope of these components may not have included testing of all significant

accounts of the component but will have contributed to the coverage of significant accounts tested for the Group.

Of the remaining components that together represent 21% of the Group’s profit before tax (on an absolute basis) (2023: 9% of

adjusted profit before tax on an absolute basis), none are individually greater than 4% (2023: 5%) of the Group’s profit before tax

(on an absolute basis). For these components, we performed other procedures, including analytical review procedures, testing of

consolidation journals and intercompany eliminations and foreign currency translation recalculations to respond to any potential

risks of material misstatement to the Group financial statements.

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The charts below illustrate the coverage obtained from the work performed by our audit teams.

Changes from the prior year

We decreased the number of full scope components from six to four in the current year and increased the number of specific scope

components from two to four. This reflects the change in contribution to the Group’s results across these entities and that a greater

number of procedures are directly performed by the primary audit team.

Involvement with component teams

In establishing our overall approach to the Group audit, we determined the type of work that needed to be undertaken at each of the

components by us, as the Group audit engagement team, or by component auditors from other EY global network firms operating

under our instruction. Of the four full scope components, audit procedures were performed on three of these directly by the Group

audit team. For the one full scope and three specific scope components, where the work was performed by component auditors,

we determined the appropriate level of involvement to enable us to determine that sufficient audit evidence had been obtained as a

basis for our opinion on the Group as a whole.

The Group audit team followed a programme of planned physical visits to the component teams in Mainland China and Hong Kong

S.A.R., China, and virtual site visits for the component teams in South Korea and Japan. The virtual visits involved video calls with

local management, including members of supply chain and marketing teams depending on the component, and with the local EY

component teams. These visits were designed to ensure that the Senior Statutory Auditor, physically or virtually, visited all those full

and specific scope audit locations not audited by the Group audit team at least once during the year. During all of these physical and

virtual visits, we held discussions on the audit approach and understood any issues arising from their work and were responsible for

the scope and direction of the audit process. We reviewed the component team’s working papers to validate that the required

procedures had been performed to the appropriate quality. We also virtually attended year end closing meetings at all components

and interacted regularly with the component teams throughout the year.

As the Group audit team, we performed the audit for the components in the United Kingdom and the United States. We also met in

person where possible, or virtually, with local management for these components. This, together with the additional procedures

performed at Group level, gave us appropriate evidence for our opinion on the Group financial statements.

79% 0% 21%

Full scope components Specific scope components Other procedures

57% 20% 23% 57% 18% 25%

Profit before tax

(on an absolute basis)

Revenue Total assets

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Climate change

Stakeholders are increasingly interested in how climate change will impact the Group. The Group has determined that the most

significant future impacts from climate change on its operations will be from climate transition risks, specifically market risks

associated with changing consumer preferences in a lower carbon economy. These are explained on pages 66 to 79 in the required

Task Force On Climate Related Financial Disclosures, and on pages 85 to 90 in the principal risks and uncertainties. The Group has

also explained their climate commitments on pages 30 to 33. All of these disclosures form part of the “Other information,” rather than

the audited financial statements. Our procedures on these unaudited disclosures therefore consisted solely of considering whether

they are materially inconsistent with the financial statements, or our knowledge obtained in the course of the audit or otherwise

appear to be materially misstated, in line with our responsibilities on “Other information”.

In planning and performing our audit, we assessed the potential impacts of climate change on the Group’s business and any

consequential material impact on its financial statements.

The Group has explained in their Basis of Preparation note how they have reflected the impact of climate change in their financial

statements, including how this aligns with their commitments in their sustainability strategy. There are no significant judgements or

estimates relating to climate change.

Our audit effort in considering the impact of climate change on the financial statements was focused on evaluating management’s

assessment of the impact of climate risk and their climate commitments, specifically on the finished goods inventory provision,

impairment of retail store right-of-use assets and related property, plant and equipment and going concern. We have assessed

whether these risks have been appropriately reflected in asset values, where values are determined through modelling future cash

flows, this primarily being impairment assessments following the requirements of UK-adopted International Accounting Standards.

As part of this evaluation, we performed our own risk assessment, supported by our climate change internal specialists and senior

members of the audit team. This included meetings with the Group’s Sustainability and Group Financial Reporting teams, a specific

climate change risk workshop and a review of peer disclosures and sector guidance on climate change to determine the risks of

material misstatement in the financial statements from climate change which needed to be considered in our audit.

We also challenged the Directors’ considerations of climate change risks in their assessment of going concern and viability and

associated disclosures. Where considerations of climate change were relevant to our assessment of going concern, these are

described above.

Based on our work, whilst we have not identified the impact of climate change on the financial statements to be a standalone key

audit matter, we have considered the impact on the following key audit matters: valuation of finished goods inventory provision; and

impairment and impairment reversals of retail store right-of-use assets and related property, plant and equipment. Details of the

impact, our procedures and findings are included in our explanation of key audit matters below.

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Key audit matters

Key audit matters are those matters that, in our professional judgment, were of most significance in our audit of the financial

statements of the current period, and include the most significant assessed risks of material misstatement (whether or not due to

fraud) that we identified. These matters included those which had the greatest effect on: the overall audit strategy, the allocation of

resources in the audit and directing the efforts of the engagement team. These matters were addressed in the context of our audit of

the financial statements as a whole, and in our opinion thereon, and we do not provide a separate opinion on these matters.

Risk Our response to the risk

Key observations communicated to

the Audit Committee

Valuation of finished goods

inventory provision

As described in the Audit

Committee Report (page 118),

Accounting Policies (page 168),

and Note 17 of the Consolidated

Financial Statements (page 189),

management raises a finished

goods inventory provision to

reflect where the expected net

realisable value is lower than

the carrying value of finished

goods inventory at the balance

sheet date. The Group has

£73m of inventory provisions,

representing 12.6% of the gross

value of inventory of £580m as

at 30 March 2024. Of the net

inventory of £507m, £475m

relates to finished goods.

The Group determines the

inventory provision considering

the aging of inventory by season,

identifying problem inventory and

considering historical loss rates,

and future sales forecasts and

the expected channel by which

the inventory will be exited. This

process is inherently judgmental

and there is therefore potential

for management bias in relation

to its allocation of inventory

to certain sales channels as

well as in relation to future

sales forecasts.

The Group audit team, full scope components teams and specific

scope component team performed the audit procedures over the

Group’s inventory valuation. The principal procedures performed

are described below.

We performed a walkthrough of the inventory provisioning

process, and identified and understood the design of key controls.

We evaluated the appropriateness of the Group’s inventory

provisioning policy. We assessed the inventory provisioning

model for each component for consistency with the Group’s

accounting policy.

We tested the integrity and accuracy of the provisioning model

and inputs (such as loss rates, seasonality and categorisation of

inventory), considering the source of information being used

by management.

Applying professional scepticism and in light of recent trading

conditions, we performed sensitivity analysis on management’s

expected sell through and loss rates of inventory.

We used inventory movement data for the current year and

analysed it to consider the inventory composition by season and

product type. We used this data to develop an expectation and

challenged management on any outliers identified.

We understood the planned sales channels and exit routes for

problem stock and challenged whether these were consistent

with prior periods, the overall sales profile of the Group and the

Board-approved forecasts used elsewhere across the Group.

We considered whether there was any evidence of management

bias in the exit routes and future sales forecasts used.

We performed analytical procedures around key assumptions and

corroborated to our work performed across other accounts to

identify and consider whether any contrary evidence existed.

We also used data to corroborate explanations from management

and to identify any contrary evidence related to the assumptions

used by management in identifying slow-moving inventory or

determining exit routes. We performed sensitivity analysis to

assess the significance and risk of changed assumptions on the

provision, primarily being the sell through, exit route and loss

rates applied. This included considering the potential impact

climate change may have on inventory provisioning.

We reviewed disclosures in the financial statements for appropriateness.

We are satisfied the

finished goods inventory

provisions are appropriate

and the Group’s disclosures

are appropriate.

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Key audit matters continued

Risk Our response to the risk

Key observations communicated to

the Audit Committee

Impairment and impairment

reversals of retail store right-

of-use assets and related

property, plant and equipment

As described in the Audit

Committee Report (page 118),

Accounting Policies (page 168),

and Notes 13 and 14 of the

Consolidated Financial

Statements (pages 186 to 187),

management assess the retail

store right-of-use assets and

related property, plant and

equipment for impairment

charges and reversals of

previous impairment charges.

The Group has £1,013m of

right-of-use assets and £406m

of property, plant and equipment

as at 30 March 2024.

In the 52 weeks to 30 March 2024

there was a net impairment

charge of £14m.

There is judgement and estimation

uncertainty involved in determining

the store forecast cash flows

to measure impairment charges

and reversals, in particular,

the revenue growth and profit

margin assumptions in light

of the current challenging

market conditions.

Our procedures on the carrying value of retail store right-of-use

assets and related property, plant and equipment were performed

centrally by the Group team.

Our procedures included, among others, performing a walkthrough

of the retail store impairment process and evaluating the design

of controls.

We reviewed and challenged the appropriateness of the Group’s

impairment policy.

We also reviewed board minutes and met with regional commercial

finance teams and general counsel to determine if any contrary

evidence existed in relation to the future plans for stores.

Management considered whether indicators of impairment

charges or reversals were present for the Group’s retail store

portfolio based on the Group’s latest forecast. We assessed the

completeness of the factors considered and assessed the

accuracy of the forecasted information in conjunction with our

testing of the Group’s forecasts further outlined below.

For the stores identified with indicators of impairment charge or

reversal, the Group prepared value-in-use impairment models.

Our procedures over the value-in-use calculations included:

• Assessing the methodology against the requirements of IAS 36

Impairment of Assets;

• Testing the integrity of the model and data inputs used back

to source data, for example agreeing store right-of-use asset

and related property, plant and equipment values back to

accounting records;

• Involving our valuations specialists to assess the

appropriateness of the discount rate used;

• Challenging assumptions used in cash flow forecasts such as

revenue growth and margin assumptions against historical

results, and third-party luxury sector forecasts;

• Performing sensitivity analysis on key assumptions and stress

testing calculations for stores most at risk of impairment;

• Challenging whether cash flow forecasts adequately factored

in known costs associated with physical and transition

climate-related risks and any cashflows required to meet

Burberry’s publicly stated climate commitments; and

• Assessing the disclosures in the financial statements,

including the requirement to disclose sensitivities where a

reasonably possible change in a key assumption would result

in a material change to the impairment charge or reversal

recorded. We tested management’s sensitivity analysis and

re-calculated the sensitivities disclosed as a result of changing

revenue assumptions.

We are satisfied that the

consideration of indicators

of impairment, value-in-use

impairment model

methodology, significant

underlying assumptions

and judgements applied

are reasonable and support

management’s conclusion

to recognise a net

impairment charge totalling

£14m against the retail

store right-of-use assets

and related property, plant

and equipment.

We are also satisfied

with the disclosure and

classification of the

impairment charges.

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Key audit matters continued

Risk Our response to the risk

Key observations communicated to

the Audit Committee

Provision for uncertain

tax positions

As described in the Audit

Committee Report (page 118),

Accounting Policies (page 168), and

Note 9 of the Consolidated Financial

Statements (page 181 to 182), the

Group is subject to tax regulation

in multiple jurisdictions and the

centralised operating structure of

the Group requires management

to exercise judgement in making

determinations as to the amount

of tax that is payable.

The Group is subject to tax

authority audits and has a number

of open tax enquiries in multiple

jurisdictions at any point in time.

As a result, the Group has

recognised a number of

provisions against uncertain tax

positions, the valuation of which

requires significant assumptions

and judgement. We focused on

this area due to the complexity,

subjectivity, quantification of the

provision and the judgement

around the trigger for recognition

or release impacting the provision

and the effective tax rate.

Our procedures on the uncertain tax position provisions were

performed centrally by the Group team, supported by subject

matter specialists and supported by overseas teams with

expertise in local tax regulations where appropriate.

Our procedures included:

• Performing a walkthrough of the tax provisioning process

and identifying key controls. We also evaluated the

appropriateness of the Group’s transfer pricing and

uncertain tax provisioning policies;

• Meeting with tax management to understand the Group’s

cross-border transactions, status of all significant matters,

including those provided for, and any changes to management’s

judgements in the year;

• Reading correspondence with tax authorities and external

advisors to inform our assessment of recorded estimates and

evaluate the completeness of the provisions recorded, directly

engaging with external advisors where appropriate. For the

most material case, we met external advisors to understand the

key judgements in the case, and utilised relevant internal

specialists. We requested, received, and reviewed a letter

directly obtained from management’s external legal counsel;

• Independently assessing management’s significant

assumptions and judgements to record or release provisions

following tax audits, settlements and the expiry of statute

of limitations;

• Testing the accuracy of the calculation of the year end

provisions by inspecting underlying documentation and

supporting schedules; and

• Evaluating the adequacy of tax disclosures.

We are satisfied that

management’s judgements

in relation to the extent of

provisions for uncertain tax

positions are appropriate.

We are also satisfied that

the tax disclosures are

appropriate.

Our application of materiality

We apply the concept of materiality in planning and performing the audit, in evaluating the effect of identified misstatements on the

audit and in forming our audit opinion.

Materiality

The magnitude of an omission or misstatement that, individually or in the aggregate, could reasonably be expected to influence the

economic decisions of the users of the financial statements. Materiality provides a basis for determining the nature and extent of

our audit procedures.

We determined materiality for the Group to be £19.2 million (2023: £30 million), which is 5.0% (2023: 4.7%) of profit before tax.

We believe that profit before tax provides us with the most relevant performance measure for the stakeholders of the Group, hence it

has been selected as the benchmark.

We determined materiality for the Company to be £22.3 million (2023: £21.5 million), which is 1% (2023: 1%) of total assets. For any

Company balances that are consolidated into the Group financial statements, an allocation of Group performance materiality was used.

Basis

• Profit before tax - £383 million

Materiality

• Materiality of £19.2m (5.0% of Profit before tax)

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Materiality continued

During the course of our audit, we reassessed initial materiality based on forecasts provided by management. Our final assessment

reflected the actual reported performance for the period.

Performance materiality

The application of materiality at the individual account or balance level. It is set at an amount to reduce to an appropriately low level

the probability that the aggregate of uncorrected and undetected misstatements exceeds materiality.

On the basis of our risk assessments, together with our assessment of the Group’s overall control environment, our judgement was

that performance materiality was 75% (2023: 75%) of our planning materiality, namely £14.4m (2023: £22.5m). We have set

performance materiality at this percentage due to our assessment of the Group’s overall control environment and the likelihood of

undetected misstatements.

Audit work at component locations for the purpose of obtaining audit coverage over significant financial statement accounts is

undertaken based on a percentage of total performance materiality. The performance materiality set for each component is based

on the relative scale and risk of the component to the Group as a whole and our assessment of the risk of misstatement at that

component. In the current year, the range of performance materiality allocated to components was £3m to £13m (2023: £4m

to £20m).

Reporting threshold

An amount below which identified misstatements are considered as being clearly trivial.

We agreed with the Audit Committee that we would report to them all uncorrected audit differences in excess of £1.0m (2023: £1.5m),

which is set at 5% of planning materiality, as well as differences below that threshold that, in our view, warranted reporting on

qualitative grounds.

We evaluate any uncorrected misstatements against both the quantitative measures of materiality discussed above and in light of

other relevant qualitative considerations in forming our opinion.

Other information

The other information comprises the information included in the annual report set out on pages 2 to 146, including Strategic Report

and Corporate Governance Statement, other than the financial statements and our auditor’s report thereon. The directors are

responsible for the other information contained within the annual report.

Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in

this report, we do not express any form of assurance conclusion thereon.

Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent

with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated.

If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise

to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there

is a material misstatement of the other information, we are required to report that fact.

We have nothing to report in this regard.

Opinions on other matters prescribed by the Companies Act 2006

In our opinion, the part of the directors’ remuneration report to be audited has been properly prepared in accordance with the

Companies Act 2006.

In our opinion, based on the work undertaken in the course of the audit:

• the information given in the strategic report and the directors’ report for the financial year for which the financial statements are

prepared is consistent with the financial statements; and

• the strategic report and the directors’ report have been prepared in accordance with applicable legal requirements.

Matters on which we are required to report by exception

In the light of the knowledge and understanding of the Group and the Company and its environment obtained in the course of the

audit, we have not identified material misstatements in the strategic report or the directors’ report.

We have nothing to report in respect of the following matters in relation to which the Companies Act 2006 requires us to report to

you if, in our opinion:

• adequate accounting records have not been kept by the Company, or returns adequate for our audit have not been received from

branches not visited by us; or

• the Company financial statements and the part of the Directors’ Remuneration Report to be audited are not in agreement with the

accounting records and returns; or

• certain disclosures of directors’ remuneration specified by law are not made; or

• we have not received all the information and explanations we require for our audit.

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Corporate Governance Statement

We have reviewed the directors’ statement in relation to going concern, longer-term viability and that part of the Corporate

Governance Statement relating to the Group and Company’s compliance with the provisions of the UK Corporate Governance Code

specified for our review by the Listing Rules.

Based on the work undertaken as part of our audit, we have concluded that each of the following elements of the Corporate

Governance Statement is materially consistent with the financial statements or our knowledge obtained during the audit:

• Directors’ statement with regards to the appropriateness of adopting the going concern basis of accounting and any material

uncertainties identified set out on page 144;

• Directors’ explanation as to its assessment of the Company’s prospects, the period this assessment covers and why the period is

appropriate set out on page 91;

• Director’s statement on whether it has a reasonable expectation that the Group will be able to continue in operation and meets its

liabilities set out on page 93;

• Directors’ statement on fair, balanced and understandable (FBU) set out on page 148;

• Board’s confirmation that it has carried out a robust assessment of the emerging and principal risks set out on page 123;

• The section of the annual report that describes the review of the effectiveness of risk management and internal control systems

set out on page 123; and

• The section describing the work of the audit committee set out on pages 118 to 121.

Responsibilities of directors

As explained more fully in the Directors’ Responsibilities Statement set out on page 148, the directors are responsible for the

preparation of the financial statements and for being satisfied that they give a true and fair view, and for such internal control as the

directors determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether

due to fraud or error.

In preparing the financial statements, the directors are responsible for assessing the Group and Company’s ability to continue as a

going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless

the directors either intend to liquidate the Group or the Company or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial statements

Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material

misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a

high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material

misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the

aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these

financial statements.

Explanation as to what extent the audit was considered capable of detecting irregularities,

including fraud

Irregularities, including fraud, are instances of non-compliance with laws and regulations. We design procedures in line with our

responsibilities, outlined above, to detect irregularities, including fraud. The risk of not detecting a material misstatement due to

fraud is higher than the risk of not detecting one resulting from error, as fraud may involve deliberate concealment by, for example,

forgery or intentional misrepresentations, or through collusion. The extent to which our procedures are capable of detecting

irregularities, including fraud, is detailed below.

However, the primary responsibility for the prevention and detection of fraud rests with both those charged with governance of the

Company and management. Our approach included the following:

• We obtained an understanding of the legal and regulatory frameworks that are applicable to the Group, and determined that

the most significant frameworks which are directly relevant to specific assertions in the financial statements are those that

relate to the reporting framework (UK adopted International Accounting Standards, UK GAAP, the Companies Act 2006 and

the UK Corporate Governance Code) and the relevant tax laws and regulations in the jurisdictions in which the Group operates.

In addition, we concluded that there are certain significant laws and regulations which may have an effect on the determination of

the amounts and disclosures in the financial statements, being the Listing Rules of the UK Listing Authority, and those laws and

regulations relating to health and safety, employees, environmental, social and anti-bribery and corruption practices.

• We understood how the Group is complying with those frameworks by making enquiries of management, including internal audit,

those responsible for legal and compliance procedures, and the company secretary. We corroborated our enquiries through our

review of Board minutes and papers provided to the Audit Committee, and observation in Audit Committee meetings, as well as

consideration of the results of our audit procedures across the Group.

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Explanation as to what extent the audit was considered capable of detecting irregularities,

including fraud continued

• We assessed the susceptibility of the Group’s financial statements to material misstatement, including how fraud might occur,

and met with finance and operational management from various parts of the business to understand where it considered there was

susceptibility to fraud. We also considered the current challenging trading conditions and performance targets and their potential

to influence management to manage earnings or influence the perceptions of analysts. We have determined there is a risk of fraud

associated to finished goods inventory provisions and a risk of management override in manual revenue journals that do not follow

the expected process. We considered the policies, processes and controls that the Group has established to address the risks

identified, including the design of controls over finished goods inventory provisions and each significant revenue stream. We also

considered the controls that the Group has that otherwise prevent, deter and detect fraud, and how senior management monitors

these controls. We performed audit procedures to address each identified fraud risk. These procedures were designed to provide

reasonable assurance that the financial statements as a whole are free from material misstatement due to fraud or error.

• Based on this understanding, we designed our audit procedures to identify non-compliance with such laws and regulations,

including providing specific instructions to full and specific scope component teams and, where necessary, using relevant

specialists. Our procedures included journal entries testing, with a focus on manual journal entries, consolidation journal entries

and journal entries indicating large or unusual transactions using data analytics. We based this testing on our understanding of the

business, enquiries of management, including internal audit, legal and other advisors, the company secretary and reading relevant

reports. We performed specific searches derived from forensic investigations experience and leveraged our data analytics

platform in performing our testing. We have also reviewed the whistleblowing reports issued during the year. Any instances of

non-compliance with laws and regulations identified that might have an impact on components were communicated to the

component audit teams and considered in our audit approach, if applicable.

• In addition, we completed procedures to conclude on the compliance of the disclosures in the Annual Report and Accounts with all

applicable requirements.

A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council’s

website at https://www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor’s report.

Other matters we are required to address

• Following the recommendation from the audit committee, we were appointed by the Company at its annual general meeting on

15 July 2020 to audit the financial statements for the Company for the period ending 27 March 2021, and subsequent financial

periods. The period of total uninterrupted engagement including previous renewals and reappointments is four years, covering the

period ending 30 March 2024.

• The audit opinion is consistent with the additional report to the audit committee.

Use of our report

This report is made solely to the Company’s members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act

2006. Our audit work has been undertaken so that we might state to the Company’s members those matters we are required to

state to them in an auditor’s report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume

responsibility to anyone other than the Company and the Company’s members as a body, for our audit work, for this report,

or for the opinions we have formed.

Michael Rudberg (Senior statutory auditor)

for and on behalf of Ernst & Young LLP, Statutory Auditor

London

14 May 2024

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GROUP INCOME STATEMENT

		52 weeks to	52 weeks to
		30 March	1 April
		2024	2023
	Note	£m	£m
Revenue	3	2, 968	3,094
Cost of sales		( 959)	(911)
Gross profit		2,009	2, 183
Operating expenses		( 1,604)	(1,572)
Other operating income		13	46
Net operating expenses	4	( 1,591)	(1,526)
Operating profit		418	657
Financing
Finance income		31	21
Finance expense		( 66)	(42)
Other financing charge		–	(2)
Net finance expense	8	( 35)	(23)
Profit before taxation	5	383	634
Taxation	9	( 112)	(142)
Profit for the year		271	492
Attributable to:
Owners of the Compan y		270	490
Non-controlling interest		1	2
Profit for the year		271	492
Earnings per share
Basic	10	74.1p	126. 9p
Diluted	10	73.9p	126.3p
		£m	£m
Reconciliation of adjusted profit before taxation:
Profit before taxation		383	634
Adjusting operating items:
Cost of sales (income)	6	–	(1)
Net operating expenses (income)	6	–	(22)
Adjusting financing items	6	–	2
Adjusted profit before taxation – non-GAAP measure		383	613
Adjusted earnings per share – non-GAAP measure
Basic	10	74.1p	123.1p
Diluted	10	73.9p	122.5p
Dividends per share
Interim	11	18.3p	16.5p
Proposed final (not recognised as a liability at 30 March / 1 April)	11	42.7p	44.5p

160

Burberry Annual Report 2023/24

Financial Statements | Group Statement of Comprehensive Income

GROUP STATEMENT OF COMPREHENSIVE INCOME

		52 weeks to	52 weeks to
		30 March	1 April
		2024	2023
	Note	£m	£m
Profit for the year		271	492
Other comprehensive income 1 :
Cash flow hedges	25	(3)	1
Foreign currency translation differences	25	(34)	14
Tax on other comprehensive income		1	(1)
Other comprehensive (loss) / income for the year, net of ta x		(36)	14
Total comprehensive income for the year		235	506
Total comprehensive income attributable to:
Owners of the Compan y		23 4	504
Non-controlling interest		1	2
		235	506

1. All items included in other comprehensive income may subsequently be reclassified to profit and loss in a future period.

161

Burberry Annual Report 2023/24

Financial Statements | Group Balance Sheet

GROUP BALANCE SHEET

		As at	As at
		30 March	1 April
		2024	2023
	Note	£m	£m
ASSETS
Non-current assets
Intangible assets	12	267	248
Property, plant and equipment	13	406	376
Right-of-use assets	14	1,013	950
Deferred tax assets	15	208	197
Trade and other receivables	16	52	52
		1,946	1,823
Current assets
Inventories	17	507	447
Trade and other receivables	16	340	307
Derivative financial assets	18	2	7
Income tax receivables		122	76
Cash and cash equivalents	19	441	1 ,026
Assets held for sale	13	12	–
		1,424	1,863
Total assets		3,370	3,686
LIABILITIES
Non-current liabilities
Trade and other payables	20	( 63)	(77)
Lease liabilities	21	( 959)	(902)
Borrowings	24	(299)	(29 8)
Deferred tax liabilities	15	( 1)	(1)
Provisions for other liabilities and charges	22	( 37)	(40)
		( 1,359)	(1,3 18)
Current liabilities
Trade and other payables	20	( 439)	(477)
Bank overdrafts	23	( 79)	(65)
Lease liabilities	21	(229)	(2 21)
Derivative financial liabilities	18	( 4)	(1)
Income tax liabilities		( 86)	(43)
Provisions for other liabilities and charges	22	(20)	(22)
		( 857)	(829)
Total liabilities		(2,216)	(2,147)
Net assets		1,154	1,539
EQUITY
Capital and reserves attributable to owners of the Company
Ordinary share capital	25	–	–
Share premium account		231	230
Capital reserve	25	41	41
Hedging reserve	25	2	4
Foreign currency translation reserve	25	198	232
Retained earnings		675	1, 026
Equity attributable to owners of the Company		1,147	1,533
Non-controlling interest in equity		7	6
Total equity		1,154	1,539

The consolidated financial statements of Burberry Group plc (registered number 03458224) on pages 148 to 208 were approved and

authorised for issue by the Board on 14 May 2024 and signed on its behalf by:

Jonathan Akeroyd

Chief Executive Officer

162

Burberry Annual Report 2023/24

Financial Statements | Group Statement of Changes in Equity

GROUP STATEMENT OF CHANGES IN EQUITY

			Attributable to owners
			of the Company
		Ordinary	Share				Non-
		share	premium	Other	Retained		controlling
		capital	account	reserves	earnings	Total	interest	Total equity
	Note	£m	£m	£m	£m	£m	£m	£m
Balance as at 2 April 2022		–	227	263	1,123	1,613	4	1,617
Profit for the year		–	–	–	490	490	2	492
Other comprehensive income:
Cash flow hedges	25	–	–	1	–	1	–	1
Foreign currency translation differences	25	–	–	14	–	14	–	14
Tax on other comprehensive income		–	–	(1)	–	(1)	–	(1)
Total comprehensive income for the year		–	–	14	490	504	2	506
Transactions with owners:
Employee share incentive schemes
Equity share awards		–	–	–	1 9	19	–	19
Tax on share awards		–	–	–	2	2	–	2
Exercise of share options		–	3	–	–	3	–	3
Purchase of own shares
Share buyback		–	–	–	(404)	(404)	–	(404)
Held by ESOP trusts		–	–	–	(1)	(1)	–	(1)
Dividends paid in the year		–	–	–	(2 03)	(203)	–	(2 03)
Balance as at 1 April 2023		–	230	277	1,026	1,533	6	1,53 9
Profit for the year		–	–	–	2 70	270	1	27 1
Other comprehensive income:
Cash flow hedges	25	–	–	(3)	–	(3)	–	(3)
Foreign currency translation differences	25	–	–	(3 4)	–	(34)	–	(34)
Tax on other comprehensive income		–	–	1	–	1	–	1
Total comprehensive income for the year		–	–	(36)	27 0	234	1	235
Transactions with owners:
Employee share incentive schemes
Equity share awards		–	–	–	1 6	16	–	16
Tax on share awards		–	–	–	(2)	(2)	–	(2)
Exercise of share options		–	1	–	–	1	–	1
Purchase of own shares
Share buyback		–	–	–	(4 02)	(402)	–	(402)
Dividends paid in the year		–	–	–	(233)	(233)	–	(233)
Balance as at 30 March 2024		–	23 1	241	675	1,147	7	1,154

163

Burberry Annual Report 2023/24

Financial Statements | Group Statement of Cash Flows

GROUP STATEMENT OF CASH FLOWS

		52 weeks to	52 weeks to
		30 March	1 April
		2024	2023
	Note	£m	£m
Cash flows from operating activities
Profit before ta x ation		383	634
Adjustments to reconcile profit before ta x ation to net cash flows:
Amortisation of intangible assets	12	42	37
Depreciation of property, plant and equipment	13	103	95
Depreciation of right-of-use assets	14	234	212
COVID-19-related rent concessions		–	(13)
Net impairment charge of property, plant and equipment	13	5	2
Net impairment charge of right-of-use assets	14	9	2
Loss/(gain) on disposal of intangible assets and property, plant and equipment		3	(19)
Gain on modification of right-of-use assets		( 4)	(2)
Loss/(gain) on derivative instruments		5	(2)
Charge in respect of employee share incentive schemes		16	19
Net finance expense		35	23
Working capital changes:
Increase in inventories		( 57)	(10)
Increase in receivables		( 32)	(17)
Decrease in payables and provisions		( 77)	(49)
Cash generated from operating activities		665	912
Interest received		32	18
Interest paid		( 52)	(40)
Taxation paid		( 139)	(140)
Net cash generated from operating activities		506	750
Cash flows from investing activities
Purchase of property, plant and equipment		( 158)	(136)
Purchase of intangible assets		( 50)	(43)
Proceeds from sale of property, plant and equipment		–	32
Initial direct costs of right-of-use assets		(4)	–
Payment in respect of acquisition of subsidiar y		( 19)	–
Net cash outflow from investing activities		(231)	(147)
Cash flows from financing activities
Dividends paid in the year	11	(233)	(203)
Payment of deferred consideration for acquisition of non-controlling interest	20	–	(6)
Payment of lease principal	21	(231)	(210)
Issue of ordinary share capital		1	3
Purchase of own shares through share buyback	25	( 400)	(400)
Purchase of own shares through share buyback – stamp duty and fees	25	(2)	(4)
Purchase of own shares by ESOP trusts		–	(1)
Net cash outflow from financing activities		( 865)	(821)
Net decrease in cash net of overdrafts		( 590)	(218)
Effect of exchange rate changes		(9)	2
Cash net of overdrafts at beginning of year		961	1,177
Cash net of overdrafts		362	961
		As at	As at
		30 March	1 April
		2024	2023
	Note	£m	£m
Cash and cash equivalents	19	441	1,026
Bank overdrafts	23	( 79)	(65)
Cash net of overdrafts		362	961

164

Burberry Annual Report 2023/24

Financial Statements | Notes to the Financial Statements

1. Basis of preparation

Burberry Group plc and its subsidiaries (the Group) is a global luxury goods manufacturer, retailer and wholesaler. The Group also

licenses third parties to manufacture and distribute products using the ‘Burberry’ trademarks. All of the companies which comprise

the Group are controlled by Burberry Group plc (the Company) directly or indirectly.

The consolidated financial statements of the Group have been prepared in accordance with the requirements of the Companies Act

2006 and UK-adopted International Accounting Standards (IFRS). These consolidated financial statements have been prepared

under the historical cost convention, except as modified by the revaluation of certain financial assets and financial liabilities at fair

value through profit or loss.

The consolidated financial statements are presented in £m. Financial ratios are calculated using unrounded numbers.

Consideration of climate-related matters

The Group has performed a climate-related scenario analysis as required by the Task Force on Climate-Related Financial

Disclosures. This scenario analysis takes into consideration different climate-related scenarios, including a 2°C or lower scenario.

Based on this scenario analysis, consideration has been given to the impact of climate-related risks on management’s judgements

and estimates, including inventory provisions and the impairment of property, plant and equipment and right-of-use assets.

The incurred costs and investments associated with our sustainability strategy are reflected in the Group’s financial statements,

including within inventories, property, plant and equipment, and operating profit.

The impact of climate-related risks on the consolidated financial statements for the 52 weeks to 30 March 2024 is not material.

This is due to the time horizons in which physical risks are expected to be most significant not aligning to the useful lives of our

assets and the investments we continue to make to mitigate market and policy risks.

The committed future financial investments associated with our sustainability strategy are included within our budget and

three-year forward-looking financial plans. These financial plans have been used to support our impairment reviews and going

concern and viability assessment. Future plans may incur additional investment on research and development, higher expenditure on

raw materials and other as yet unidentified costs.

Going concern

In considering the appropriateness of adopting the going concern basis in preparing the financial statements, the Directors have

assessed the potential cash generation of the Group. This assessment for any indicators that the going concern basis of preparation

is not appropriate covers the period from the date of signing the financial statements up to 27 September 2025.

The scenarios considered by the Directors include a severe but plausible downside scenario reflecting the Group’s base plan

adjusted for severe but plausible impacts from the Group’s principal risks. This central planning scenario is informed by a

comprehensive review of the macroeconomic scenarios using third-party projections of macroeconomic data for the luxury fashion

industry. The Group’s central planning scenario reflects a balanced projection aligned to the Group’s strategy, a balanced

assumption for economic uncertainty and capital expenditure and dividends in line with the Group’s capital allocation framework.

As a sensitivity, this central planning scenario has been flexed to reflect the aggregation of severe impacts arising linked to our

principal risks which in total represents a 13% downgrade to revenues in the 18 month period to September 2025, in comparison to

the base case, as well as the associated consequences for EBITDA and cash. Management consider this represents a severe but

plausible downside scenario appropriate for assessing going concern.

The severe but plausible downside modelled the following risks occurring simultaneously:

• A severe impact arising from a more severe and prolonged reduction in the GDP growth assumptions across the markets in which

we operate, combined with a reduction to our global consumer demand arising from a change in consumer preference compared

to our central planning scenario

• An increase in geopolitical tension which reduces GDP growth assumptions compared to the central planning model

• A significant reputational incident such as negative sentiment propagated through social media

• The impact of a business interruption event, resulting in a two week interruption arising from the supply chain impact,

and interruption to one of our channels

• The occurrence of a one-time physical risk relating to climate change in FY 2024/25 and the materialisation of a severe but

plausible ongoing market risk relating to climate change in line with a scenario reflecting a 2°C global temperature increase

compared to pre-industrial levels

• The payment of a settlement arising from a regulatory or compliance-related matter

• A short-term impact of a 10% weakening in a key non-sterling currency for the Group before it is recovered through

price adjustment

• Repayment of Sustainability Bond without raising new finance

165

Burberry Annual Report 2023/24

Financial Statements | Notes to the Financial Statements

1. Basis of preparation continued

Going concern continued

Further mitigating actions within management control would be available under this scenario, including working capital reduction

measures and limiting capital expenditure, but these were not incorporated into the downside modelling.

The Directors have also considered the Group’s current liquidity and available facilities. As at 30 March 2024, the Group Balance

Sheet reflects cash net of overdrafts of £362 million. In addition, the Group has access to a £300 million revolving credit facility

which matures in July 2026, which is currently undrawn. The £300 million sustainability bond matures within the going concern

period on 21 September 2025 and the revolving credit facility is considered to be available to be drawn within the severe but

plausible scenario in order to settle this repayment.

The Group is in compliance with the covenants for the revolving credit facility, and the borrowings raised via the sustainability bond

are not subject to covenants. Details of cash, overdrafts, borrowings and facilities are set out in notes 19, 23 and 24 respectively of

these financial statements. Whilst outside of the going concern assessment period, the Group have considered renewal of the

revolving credit facility ahead of maturity in July 2026 and are confident that this will be available.

In all the scenarios assessed, taking into account current liquidity and available resources and before the inclusion of any mitigating

actions within management control, the Group was able to maintain sufficient liquidity to continue trading through the going concern

period up to 27 September 2025. On the basis of the assessment performed, the Directors consider it is appropriate to continue to

adopt the going concern basis in preparing the consolidated financial statements for the 52 weeks ended 30 March 2024.

New standards, amendments and interpretations adopted in the period

A number of new amendments to standards are effective for the financial period commencing 2 April 2023 but they do not have a

material impact on the financial statements of the Group. Refer to note 9 and note 15 for further details on the impact of adoption of

amendments to IAS 12 Income taxes.

Standards not yet adopted

Certain new accounting standards and amendments to standards have been published that are not mandatory for the 52 weeks to

30 March 2024 and have not been early adopted by the Group. These standards are not expected to have a material impact on the

entity in the current or future reporting periods and on foreseeable future transactions, apart from IFRS 18 Presentation and

Disclosure in Financial Statements. IFRS 18, which is effective for reporting periods beginning on or after 1 January 2027, replaces

IAS 1 Presentation of Financial Statements and is expected to impact the presentation of the Group’s primary financial statements.

The amendment was issued on 9 April 2024 and the impact will be communicated in future periods following an assessment by

the Group.

Basis of consolidation

The Group’s annual financial statements comprise those of Burberry Group plc (the Company) and its subsidiaries, presented as a

single economic entity. The results of the subsidiaries are prepared for the same reporting year as the Company, using consistent

accounting policies across the Group.

The financial year is the 52 weeks ended 30 March 2024 (last year: 52 weeks ended 1 April 2023).

Subsidiaries are all entities (including special purpose entities) over which the Group has control. The Group controls an entity

when the Group is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to affect those

returns through its power over the entity. Subsidiaries are fully consolidated from the date on which control is transferred to the

Group and cease to be consolidated from the date on which control is transferred out of the Group. Where there is a loss of control

of a subsidiary, the consolidated financial statements include the results for the portion of the reporting period during which the

Group had control. Intra-group transactions, balances and unrealised profits on transactions between Group companies are

eliminated in preparing the Group financial statements. The Group treats transactions with non-controlling interests as transactions

with equity owners of the Group. For acquisitions of additional interests in subsidiaries from non-controlling interests, the difference

between any consideration paid and the relevant share acquired of the carrying value of net assets of the subsidiary is recorded in

equity. Gains or losses on disposals of interests in subsidiaries to non-controlling interests are also recorded in equity.

Key sources of estimation uncertainty

Preparation of the consolidated financial statements in conformity with IFRS requires that management make certain estimates and

assumptions that affect the measurement of reported revenues, expenses, assets and liabilities and the disclosure of

contingent liabilities.

If in the future such estimates and assumptions, which are based on management’s best estimates at the date of the financial

statements, deviate from actual circumstances, the original estimates and assumptions will be updated as appropriate in the period

in which the circumstances change.

Estimates are continually evaluated and are based on historical experience and other factors, including expectations of future events

that are believed to be reasonable under the circumstances. The key areas where the estimates and assumptions applied have a

significant risk of causing a material adjustment to the carrying value of assets and liabilities within the next financial year are

discussed below. Further details of the Group’s accounting policies in relation to these areas are provided in note 2.

166

Burberry Annual Report 2023/24

Financial Statements | Notes to the Financial Statements

1. Basis of preparation continued

Key sources of estimation uncertainty continued

Impairment, or reversals of impairment, of property, plant and equipment and right-of-use assets

Property, plant and equipment and right-of-use assets are reviewed for impairment if events or changes in circumstances indicate

that the carrying amount may not be recoverable. When a review for impairment is conducted, the recoverable amount of an asset

or a cash generating unit is determined based on value-in-use calculations prepared using management’s best estimates and

assumptions at the time. Refer to notes 13 and 14 for further details of retail property, plant and equipment, right-of-use assets

and impairment reviews carried out in the period and for sensitivities relating to this key source of estimation uncertainty.

Inventory provisioning

The Group purchases, manufactures and sells luxury goods and is subject to changing consumer demands and fashion trends.

The recoverability of the cost of inventories is assessed every reporting period, by considering the expected net realisable

value of inventory compared to its carrying value. Where the net realisable value is lower than the carrying value, a provision is

recorded. When calculating inventory provisions, management considers the nature and condition of the inventory, as well as

applying assumptions in respect of anticipated saleability of finished goods and future usage of raw materials. Refer to note 17

for further details of the carrying value of inventory and inventory provisions and for sensitivities relating to this key source of

estimation uncertainty.

Uncertain tax positions

In common with many multinational companies, the Group faces tax audits in jurisdictions around the world in relation to intragroup

transactions between associated entities within the Group. These tax audits are often subject to inter-government negotiations.

The matters under discussion are often complex and can take many years to resolve.

Tax liabilities are recorded based on management’s estimate of either the most likely amount or the expected value amount

depending on which method is expected to better reflect the resolution of the uncertainty. Given the inherent uncertainty in

assessing tax outcomes, the Group could, in future periods, experience adjustments to these tax liabilities that have a material

positive or negative effect on the Group’s results for a particular period.

Refer to note 9 for further details of management estimates surrounding the outcome of all matters under dispute or negotiation

between governments in relation to current tax liabilities recognised at 30 March 2024, and for sensitivities relating to this key

source of estimation uncertainty.

Key judgements in applying the Group’s accounting policies

Judgements are those decisions made when applying accounting policies which have a significant impact on the amounts

recognised in the Group financial statements. Further details of the Group’s accounting policies are provided in note 2.

Key judgements that have a significant impact on the amounts recognised in the Group financial statements for the 52 weeks

to 30 March 2024 and the 52 weeks to 1 April 2023 are as follows:

Where the Group is a lessee, judgement is required in determining the lease term at initial recognition, and throughout the lease

term, where extension or termination options exist. In such instances, all facts and circumstances that may create an economic

incentive to exercise an extension option, or not exercise a termination option, have been considered to determine the lease term.

Considerations include, but are not limited to, the period assessed by management when approving initial investment, together with

costs associated with any termination options or extension options. Extension periods (or periods after termination options) are only

included in the lease term if the lease is reasonably certain to be extended (or not terminated). Where the lease term has been

extended by assuming an extension option will be recognised, this will result in the initial right-of-use assets and lease liabilities at

inception of the lease being greater than if the option was not assumed to be exercised. Likewise, assuming a break option will be

exercised will reduce the initial right-of-use assets and lease liabilities.

Refer to note 21 for further details surrounding the judgements regarding the impact of breaks and options on lease liabilities.

167

Burberry Annual Report 2023/24

Financial Statements | Notes to the Financial Statements

2. Accounting policies

The material accounting policies of the Group are:

a) Revenue

The Group obtains revenue from contracts relating to sales of luxury goods to retail and wholesale customers. The Group also

obtains revenue through licences issued to third parties to produce and sell goods carrying ‘Burberry’ trademarks. Retail purchases

are paid at time of purchase while wholesale and licensing purchases are paid on short-term credit terms. Revenue is stated

excluding Value Added Tax and other sales-related taxes.

Retail and wholesale revenue

For retail and wholesale revenue, the primary performance obligation is the transfer of luxury goods to the customer. For retail

revenue this is considered to occur when control of the goods passes to the customer. For in-store retail revenue, control transfers

when the customer takes possession of the goods in store and pays for the goods. For digital retail revenue, control is considered to

transfer when the goods are delivered to the customer. The timing of transfer of control of the goods in wholesale transactions

depends upon the terms of trade in the contract. Principally for wholesale revenue, revenue is recognised either when goods are

collected by the customer from the Group’s premises, or when the Group has delivered the goods to the location specified in the

contract. Provision for returns and other allowances are reflected in revenue when revenue from the customer is first recognised.

A sales return liability and a corresponding return asset within gross inventory are recognised. Retail customers typically have the

right to return product within a limited time frame while wholesale customers typically have the right to return damaged and, under

agreement, certain current season products. Returns are initially estimated based on historical levels and adjusted subsequently as

returns are incurred.

Some wholesale contracts may require the Group to make payments to the wholesale customer for services directly relating to the

sale of the Group’s goods, such as the cost of staff handling the Group’s goods at the wholesaler. Payments to the customer directly

relating to the sale of goods to the customer are recognised as a reduction in revenue, unless in exchange for a distinct good or

service. These charges are recognised in revenue at the later of when the sale of the related goods to the customer is recognised or

when the customer is paid, or promised to be paid, for the service. Payments to the customer relating to a service which is distinct

from the sale of goods to the customer are recognised in operating costs.

The Group sells gift cards and similar products to customers, which can be redeemed for goods, up to the value of the card,

at a future date. Revenue relating to gift cards is recognised when the card is redeemed, up to the value of the redemption.

Unredeemed amounts on gift cards are classified as contract liabilities. Typically, the Group does not expect to have significant

unredeemed amounts arising on its gift cards.

Licensing revenue

The Group’s licences entitle the licensee to access the Group’s trademarks over the term of the licence. Hence revenue from

licensing is recognised over the term of access to the licence. Royalties receivable under licence agreements are usually based on

production or sales volumes and are accrued in revenue as the subsequent production or sale occurs. Any amounts received which

have not been recognised in revenue are classified as contract liabilities.

b) Segment reporting

As required by IFRS 8 Operating Segments, the segmental information presented in the financial statements is reported in a manner

consistent with the internal reporting provided to the Chief Operating Decision Maker. The Chief Operating Decision Maker, who is

responsible for allocating resources and assessing performance, has been identified as the Board of Directors.

The Group has centralised activities for designing, making and sourcing, which ensure a global product offering is sold through retail

and wholesale channels worldwide. Resource allocation and performance is assessed across the whole of the retail/wholesale

channel globally. Hence the retail/wholesale channel has been determined to be an operating segment.

Licensed products are manufactured and sold by third-party licensees. As a result, this channel is assessed discretely by the

Chief Operating Decision Maker and has been determined to be an operating segment.

The Group presents an analysis of its revenue by channel, by product division and by geographical destination.

c) Business combinations

The acquisition method of accounting is used to account for the acquisition of subsidiaries by the Group. The cost of an acquisition

is measured as the fair value of the assets given, equity instruments issued and liabilities assumed at the date of exchange.

Contingent payments are subsequently remeasured at fair value through the Income Statement. All transaction costs are expensed

to the Income Statement. Identifiable assets acquired and liabilities and contingent liabilities assumed in a business combination

are measured initially at their fair values at the acquisition date, irrespective of the extent of any non-controlling interest.

Non-controlling interests in subsidiaries are identified separately from the Group’s equity, and are initially measured either at

fair value or at a value equal to the non-controlling interests’ share of the identifiable net assets acquired. The choice of the basis of

measurement is an accounting policy choice for each individual business combination. The excess of the cost of acquisition together

with the value of any non-controlling interest over the fair value of the identifiable net assets acquired is recorded as goodwill. If the

cost of acquisition is less than the fair value of the net assets of the subsidiary acquired, the difference is recognised directly in the

Income Statement.

168

Burberry Annual Report 2023/24

Financial Statements | Notes to the Financial Statements

2. Accounting policies continued

d) Share schemes

The Group operates a number of equity-settled share-based compensation schemes under which services are received from

employees (including Executive Directors) as consideration for equity instruments of the Company. The cost of the share-based

incentives is measured with reference to the fair value of the equity instruments awarded at the date of grant, including share awards

and options. Appropriate option pricing models, including Black-Scholes, are used to determine the fair value of the option awards

made. The fair value takes into account the impact of any market performance conditions, but the impact of non-market performance

conditions is not considered in determining the fair value on the date of grant. Vesting conditions which relate to non-market

conditions are allowed for in the assumptions used for the number of share awards or options expected to vest. The estimate of the

number of share awards or options expected to vest is revised at each balance sheet date.

In some circumstances, employees may provide services in advance of the grant date. The grant date fair value is estimated for the

purposes of recognising the expense during the period between the service commencement period and the grant date.

The cost of the share-based incentives is recognised as an expense over the vesting period of the share awards, or options,

with a corresponding increase in equity.

When share awards or options are exercised, they are settled either via issue of new shares in the Company, or through shares held

in an Employee Share Option Plan trust or The Burberry Group plc SIP Trust (collectively known as the ESOP trusts), depending on

the terms and conditions of the relevant scheme. For new shares issued, the proceeds received from the exercise of share options,

net of any directly attributable transaction costs, are credited to share capital and share premium accounts. When ESOP shares are

used, any difference between the exercise price and their cost is recognised in retained earnings.

e) Leases

The Group is both a lessee and lessor of property, plant and equipment. A contract is, or contains, a lease if the contract conveys the

right to control the use of an identified asset for a period of time in exchange for consideration. An identified asset may be

specifically or implicitly specified. Control exists when the lessee has both the right to direct the use of the identified asset and the

right to obtain substantially all of the economic benefits from that use.

Lessee accounting

The Group’s principal lease arrangements where the Group acts as the lessee are for property, most notably the lease of

retail stores, corporate offices and warehouses. Other leases are for office equipment, vehicles, and supply chain equipment.

Lease terms are negotiated on an individual basis and contain a wide range of different terms and conditions.

The Group recognises all lease liabilities and the corresponding right-of-use assets on the Balance Sheet, with the exception of

certain short-term leases (12 months or less) and leases of low value assets, which are expensed as incurred. Leases and the

corresponding right-of-use assets are initially recognised when the Group obtains control of the underlying asset. Leases for new

assets are presented as additions to lease liabilities and right-of-use assets.

Lease liabilities are initially measured on a present value basis. Lease liabilities include the net present value of the following

lease payments:

• Fixed payments, less any incentives

• Variable lease payments that are based on a future index or rate

• Amounts expected to be payable by the lessee under residual value guarantees and

• The cost of exercising a purchase option if the lessee is reasonably certain to exercise that option

Where the lease contains an extension option or a termination option which is exercisable by the Group, as lessee, an assessment

is made as to whether the Group is reasonably certain to exercise the extension option, or not exercise the termination option,

considering all relevant facts and circumstances that create an economic incentive. Considerations may include the contractual

terms and conditions for the optional periods compared to market rates, costs associated with the termination of the lease and the

importance of the underlying asset to the Group’s operations.

Variable lease payments dependent upon a future index or rate are measured using the amounts payable at the commencement date

until the index or rate is known. Variable lease payments not dependent on an index or rate, including lease payments based on a

percentage of turnover, are excluded from the calculation of lease liabilities.

Payments are discounted at the incremental borrowing rate of the lessee, unless the interest rate implicit in the lease can be

readily determined.

Right-of-use assets are classified as property or non-property. The Group has elected not to apply the short-term exemption

to the property class of right-of-use assets. Where the exemption is applied to the non-property class of right-of-use assets,

lease payments are expensed as incurred. The low value asset exemption has been applied to the non-property class of assets

where applicable.

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2. Accounting policies continued

e) Leases continued

Lessee accounting continued

In circumstances where the Group is in possession of a property but there is no executed agreement or other binding obligation

in relation to the property, rent is expensed until such time the obligation becomes binding, at which point, a right-of-use asset

and lease liability will be recognised prospectively. These lease costs are disclosed as lease in holdover expenses. Refer to

notes 5 and 21.

Right-of-use assets are measured at cost comprising the following:

• The amount of the initial measurement of the lease liability

• Any lease payments made at or before the commencement date less any lease incentives received and

• Any initial direct costs incurred in entering into the lease

The Group recognises depreciation of right-of-use assets and interest on lease liabilities in the Income Statement over the lease

term. Repayments of lease liabilities are classified separately in the Statement of Cash Flows where the cash payments for the

principal portion of the lease liability are presented within financing activities, and cash payments for the interest portion are

presented within operating activities. Payments in relation to variable lease payments based on turnover, short-term leases and

leases of low value assets which are not included on the Balance Sheet are included within operating expenses.

Modifications to lease agreements, extensions to existing lease agreements and changes to future lease payments relating to

existing terms in the contract, including market rent reassessments and index-based changes, are presented as remeasurements of

the lease liabilities. The related right-of-use asset is also remeasured. If the modification results in a reduction in scope of the lease,

either through shortening the lease term or through disposing of part of the underlying asset, a gain or loss on disposal may arise

relating to the difference between the lease liabilities and the right-of-use asset applicable to the reduction in scope.

Right-of-use assets are included in the review for impairment of property, plant and equipment and intangible assets with finite

economic lives, if there is an indication that the carrying amount of the cash generating unit may not be recoverable.

COVID-19-Related Rent Concessions

The Group accounts for eligible COVID-19 related rent forgiveness as negative variable lease payments. Rent concessions are

recognised once a legally binding agreement is made between both parties, by derecognising the portion of the lease liability

that has been forgiven and recognising the benefit in the Income Statement. In the prior year, the Group recognised £13 million in

COVID-19-related rent concessions in the Income Statement within other operating income. This was presented as an adjusting item

(refer to note 6). In the Statement of Cash Flows, the forgiveness results in lower payments of lease principal. The negative variable

lease payments in the Income Statement comprise a non-cash item which is adjusted for to calculate cash generated from

operating activities. No COVID-19 related rent concessions were recognised in the 52 weeks to 30 March 2024.

f) Dividend distributions

Dividend distributions to Burberry Group plc’s shareholders are recognised as a liability in the period in which the dividend becomes

a committed obligation. Final dividends are recognised when they are approved by the shareholders. Interim dividends are

recognised when paid.

g) Pension costs

Eligible employees participate in defined contribution pension schemes, the principal one being in the UK with its assets held in an

independently administered fund. The cost of providing these benefits to participating employees is recognised in the Income

Statement as they fall due and comprises the amount of contributions from the Group to the schemes.

h) Intangible assets

Goodwill

Goodwill is the excess of the cost of acquisition together with the value of any non-controlling interest, over the fair value of

identifiable net assets acquired. Goodwill on acquisition is recorded as an intangible asset. Fair values are attributed to the

identifiable assets, liabilities and contingent liabilities that existed at the date of acquisition, reflecting their condition at that

date. Adjustments are also made to align the accounting policies of acquired businesses with those of the Group.

Goodwill is assigned an indefinite useful life. Impairment reviews are performed annually, or more frequently if events or changes in

circumstances indicate that the carrying value may not be recoverable. Impairment losses recognised on goodwill are not reversed in

future periods.

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2. Accounting policies continued

h) Intangible assets continued

Trademarks, licences and other intangible assets

The cost of securing and renewing trademarks and licences, and the cost of acquiring other intangible assets, is capitalised at

purchase price, or fair value if acquired through a business combination, and amortised by equal annual instalments over the period

in which benefits are expected to accrue, typically ten years for trademarks, or the term of the licence. The useful life of trademarks

and other intangible assets is determined on a case-by-case basis, in accordance with the terms of the underlying agreement and

the nature of the asset.

Computer software

Computer software costs are capitalised during the development phase at the point at which there is sufficient certainty that the

software will deliver future economic benefits to the Group. The cost of acquiring computer software (including licences and

separately identifiable development costs) is capitalised as an intangible asset at purchase price, plus any directly attributable cost

of preparing that asset for its intended use. Software costs are amortised on a straight-line basis over their estimated useful lives,

which may be up to seven years.

i) Property, plant and equipment

Property, plant and equipment, with the exception of assets in the course of construction, is stated at cost or deemed cost based on

historical revalued amounts prior to the adoption of IFRS, less accumulated depreciation and provision to reflect any impairment in

value. Assets in the course of construction are stated at cost less any provision for impairment and transferred to completed assets

when substantially all of the activities necessary for the asset to be ready for use have occurred. Cost includes the original purchase

price of the asset and costs attributable to bringing the asset to its working condition for its intended use.

Depreciation

Depreciation of property, plant and equipment is calculated to write off the cost or deemed cost, less residual value, of the assets in

equal annual instalments over their estimated useful lives at the following rates:

Type of asset	Category of property, plant and equipment	Useful life
Land	Freehold land and buildings	Not depreciated
Freehold buildings	Freehold land and buildings	Up to 50 years
Leasehold improvements	Leasehold improvements	Over the unexpired term of the lease
Plant and machiner y	Fixtures, fittings and equipment	Up to 15 years
Retail fixtures and fittings	Fixtures, fittings and equipment	Up to 5 years
Office fixtures and fittings	Fixtures, fittings and equipment	Up to 5 years
Computer equipment	Fixtures, fittings and equipment	Up to 7 years
Assets in the course of construction	Assets in the course of construction	Not depreciated

Profit/loss on disposal of property, plant and equipment and intangible assets

Profits and losses on the disposal of property, plant and equipment and intangible assets represent the difference between the net

proceeds and net book value at the date of sale. Disposals are accounted for when the relevant transaction becomes unconditional.

j) Assets held for sale

Non-current assets are classified as held for sale when their carrying amount is to be recovered principally through a sale transaction

rather than through continued use, and a sale within the next 12 months is considered to be highly probable. Assets classified as held

for sale cease to be depreciated and they are stated at the lower of carrying amount and fair value less cost to sell.

k) Impairment of non-financial assets

Assets that have an indefinite useful life are not subject to amortisation and are tested annually for impairment. Assets under

construction are also tested annually. Assets that are subject to amortisation or depreciation are reviewed for impairment whenever

events or changes in circumstance indicate that the carrying value may not be recoverable. An impairment loss is recognised for the

amount by which the carrying value exceeds its recoverable amount. The recoverable amount is the higher of an asset’s fair value

less costs to sell and value-in-use. For the purposes of assessing impairment, retail assets are grouped at the lowest levels for which

there are separately identifiable cash flows, being individual stores (cash generating units), and goodwill assets are considered at

the lowest level being monitored by management. Non-financial assets, other than goodwill, for which an impairment has been

previously recognised are reviewed for possible reversal of impairment at each reporting date.

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2. Accounting policies continued

l) Inventories

Inventories are stated at the lower of cost and net realisable value. Cost consists of all costs of purchase, costs of conversion,

design costs and other costs incurred in bringing the inventories to their first point of sale location and condition. The cost of

inventories is determined using a weighted average cost method, taking account of the fashion seasons for which the inventory was

offered. Where necessary, provision is made to reduce cost to no more than net realisable value having regard to the nature and

condition of inventory, as well as its anticipated utilisation and saleability.

m) Taxation

Tax expense represents the sum of the current tax expense and the deferred tax charge.

Current tax is based on taxable profit for the year. Taxable profit differs from net profit as reported in the Income Statement because

it excludes items of income or expense which are taxable or deductible in other years and it further excludes items which are never

taxable or deductible. The Group’s liability for current tax is calculated using tax rates which have been enacted or substantively

enacted at the balance sheet date.

Deferred tax is recognised, using the liabilities method, on temporary differences arising between the tax bases of assets and

liabilities and their carrying amounts in the consolidated financial statements. However, if the temporary difference arises from the

initial recognition of an asset or liability in a transaction other than a business combination that at the time of the transaction affects

neither accounting nor taxable profit or loss, and does not give rise to equal taxable and deductible temporary differences, no

deferred tax will be recognised. Deferred tax is determined using tax rates (and laws) that have been enacted or substantively

enacted at the balance sheet date and are expected to apply when the related deferred tax asset is realised or the deferred

tax liability is settled.

Deferred tax assets are recognised to the extent that it is probable that future taxable profits will be available against which the

temporary differences can be utilised.

Deferred tax is provided on temporary differences arising on investments in subsidiaries, except where the timing of the reversal

of the temporary difference is controlled by the Group and it is probable that the temporary difference will not reverse in the

foreseeable future.

Deferred tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets against current tax

liabilities and when deferred tax assets and liabilities relate to income taxes levied by the same taxation authority on either the same

taxable entities or different taxable entities where there is an intention to settle the balances on a net basis.

n) Provisions

Provisions are recognised when there is a present legal or constructive obligation as a result of past events, for which it is probable

that an outflow of economic benefits will be required to settle the obligation, and where the amount of the obligation can be reliably

estimated. When the effect of the time value of money is material, provision amounts are calculated based on the present value of

the expenditures expected to be required to settle the obligation. The present value is calculated using forward market interest rates

as measured at the balance sheet reporting date, which have been adjusted for risks specific to the future obligation.

Property obligations

A provision for the present value of future property reinstatement costs is recognised where there is an obligation to return the

leased property to its original condition at the end of a lease term. The reinstatement cost at the end of a lease usually arises due to

leasehold improvements and modifications carried out by the Group in order to customise the property during tenure of the lease.

As a result, the cost of the reinstatement provision is recognised as a component of the cost of the leasehold improvements in

property, plant and equipment when these are installed and amortised to the income statement over the expected life of the lease.

o) Share capital

Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new shares or options are shown in

equity as a deduction, net of tax, from the proceeds.

Where any Group company purchases the Company’s equity share capital (treasury shares), the consideration paid, including

any directly attributable incremental costs, is deducted from retained earnings. Where such shares are subsequently cancelled,

a transfer is made from retained earnings to the capital reserve, equivalent to the nominal value of the shares purchased and

subsequently cancelled. Where such shares are subsequently sold or reissued, any consideration received, net of any directly

attributable incremental transaction costs and the related income tax effects, is credited to retained earnings up to the value of the

consideration originally paid. Any additional consideration received is credited to the share premium account included in equity

attributable to owners of the Company.

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2. Accounting policies continued

p) Financial instruments

Financial instruments are initially recognised at fair value plus directly attributable transaction costs on the Balance Sheet when the

entity becomes a party to the contractual provisions of the instrument. A financial asset is derecognised when the contractual rights

to the cash flow expire or substantially all risks and rewards of the asset are transferred. A financial liability is derecognised when

the obligation specified in the contract is discharged, cancelled or expired.

At initial recognition, all financial liabilities are stated at fair value. Subsequent to initial recognition, all financial liabilities are stated

at amortised cost using the effective interest rate method except for derivatives which are held at fair value and which are classified

as fair value through profit and loss, except where they qualify for hedge accounting. Financial assets are classified as either

amortised cost or fair value through profit and loss depending on their cash flow characteristics. Assets with cash flows that

represent solely payments of principal and interest are measured at amortised cost. The fair value of the Group’s financial assets and

liabilities held at amortised cost mostly approximate their carrying amount due to the short maturity of these instruments. Where the

fair value of any financial asset or liability held at amortised cost is materially different to the book value, the fair value is disclosed.

The Group classifies its instruments in the following categories:

				Fair value
				measurement
Financial instrument category	Note	Classification	Measurement	hierarchy
Cash and cash equivalents	19	Amortised cost	Amortised cost	N/A
Cash and cash equivalents	19	Fair value through profit and loss	Fair value through profit and loss	2
Trade and other receivables	16	Amortised cost	Amortised cost	N/A
Trade and other payables	20	Other financial liabilities	Amortised cost	N/A
Borrowings	24	Other financial liabilities	Amortised cost	N/A
Leases	21	Lease liabilities	Amortised cost	N/A
Deferred consideration	20	Fair value through profit and loss	Fair value through profit and loss	3
Forward foreign exchange contracts	18	Fair value through profit and loss	Fair value through profit and loss	2
Forward foreign exchange contracts
used for hedging	18	Fair value – hedging instrument	Fair value – hedging instrument	2
Equity swap contracts	18	Fair value through profit and loss	Fair value through profit and loss	2

1. Cash flow hedge and net investment hedge accounting is applied to the extent it is achievable.

2. The fair value measurement hierarchy is only applicable for financial instruments measured at fair value.

3. Forward foreign exchange contracts used for hedging are classified as Fair value – hedging instruments under IFRS 9, however IAS 39 hedge accounting has been applied.

The measurements for financial instruments carried at fair value are categorised into different levels in the fair value hierarchy based

on the inputs to the valuation technique used. The different levels are defined as follows:

Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities that the Group can access at the

measurement date.

Level 2: inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly

or indirectly.

Level 3: includes unobservable inputs for the asset or liability.

Observable inputs are those which are developed using market data, such as publicly available information about actual events or

transactions. The Group has an established framework with respect to measurement of fair values, including Level 3 fair values. The

Group regularly reviews any significant inputs which are not derived from observable market data and considers, where available,

relevant third-party information, to support the conclusion that such valuations meet the requirements of IFRS. The classification

level in the fair value hierarchy is also considered periodically.

The fair value of those cash and cash equivalents measured at fair value through profit and loss, principally money market funds,

is derived from their net asset value which is based on the value of the portfolio investment holdings at the balance sheet date.

This is considered to be a Level 2 measurement.

The fair value of forward foreign exchange contracts, equity swap contracts and trade and other receivables, principally cash settled

equity swaps, is based on a comparison of the contractual and market rates and, in the case of forward foreign exchange contracts,

after discounting using the appropriate yield curve as at the balance sheet date. All Level 2 fair value measurements are calculated

using inputs which are based on observable market data.

The fair value of the contingent payment component of deferred consideration is considered to be a Level 3 measurement and is

derived using a present value calculation, incorporating observable and non-observable inputs. This valuation technique has been

adopted as it most closely mirrors the contractual arrangement.

The Group’s primary categories of financial instruments are listed below:

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2. Accounting policies continued

p) Financial instruments continued

Cash and cash equivalents

Cash and short-term deposits on the Balance Sheet comprise cash at banks and on hand and short-term highly liquid deposits with

a maturity of three months or less, that are readily convertible to a known amount of cash and subject to an insignificant risk of

changes in value. In the Statement of Cash Flows, cash and cash equivalents also include bank overdrafts, which are recorded under

current liabilities on the Balance Sheet.

While cash at bank and in hand is classified as amortised cost, some short-term deposits are classified as fair value through profit

and loss.

Cash and cash equivalents held at amortised cost are subject to impairment testing at each period end.

Trade and other receivables

Trade and other receivables are included in current assets, except for maturities greater than 12 months after the balance sheet date.

Most receivables are held with the objective to collect the contractual cash flows and are therefore recognised initially at fair value

and subsequently measured at amortised cost using the effective interest rate method, less provision for impairment. A provision for

the expected credit losses on trade receivables is established at inception. Expected credit loss rates are calculated by reviewing

lifetime expected credit losses using historic and forward-looking data. The amount of the movement in the provision is recognised

in the Income Statement.

Trade and other payables

Trade and other payables are included in current liabilities, except for maturities greater than 12 months after the balance sheet date.

Payables are recognised initially at fair value and subsequently measured at amortised cost using the effective interest rate method.

Borrowings

Borrowings are recognised initially at fair value, inclusive of transaction costs incurred. Borrowings are subsequently stated at

amortised cost and the difference between the proceeds (net of transaction costs) and the redemption value is recognised in the

Income Statement over the period of the borrowings using the effective interest rate method. Borrowings are classified as current

liabilities unless the Group has an unconditional right to defer settlement of the liability for at least 12 months after the balance

sheet date.

Deferred consideration

Deferred consideration is initially recognised at the present value of the expected future payments. It is subsequently remeasured

at fair value at each reporting period with the change in fair value relating to changes in expected future payments recorded in the

Income Statement as an operating expense or income. Changes in fair value relating to unwinding of discounting to present value are

recorded as a financing expense.

Derivative instruments

The Group uses derivative financial instruments to hedge its exposure to fluctuations in foreign exchange rates arising on certain

trading transactions. The principal derivative instruments used are forward foreign exchange contracts taken out to hedge highly

probable cash flows in relation to future sales, and product purchases. The Group also may designate forward foreign exchange

contracts or foreign currency borrowings as a net investment hedge of the assets of overseas subsidiaries.

When hedge accounting is applied, the Group documents at the inception of the transaction the relationship between the spot

element of the hedging instruments and hedged items, as well as its risk management objective and strategy for undertaking various

hedge transactions. The Group also documents its assessment, both at hedge inception and on an ongoing basis, of whether the

hedging instruments that are used in hedging transactions are highly effective in offsetting changes in fair values or cash flows of

hedged items.

Derivatives are initially recognised at fair value at the trade date and are subsequently remeasured at their fair value. The method

of recognising the resulting gain or loss depends on whether the derivative is designated as a hedging instrument, and if so, the

nature of the item being hedged. The Group designates certain derivatives as either: (1) hedges of the fair value of recognised assets

and liabilities or a firm commitment (fair value hedges); (2) hedges of highly probable forecast transactions (cash flow hedges);

(3) hedges of net investment of the assets of overseas subsidiaries (net investment hedges); or (4) classified as fair value through

profit and loss.

The forward elements of the hedging instrument are recognised in operating expenses.

Changes in the fair value relating to the spot element of derivatives that are designated and qualify as fair value hedges are recorded

in the Income Statement immediately, together with any changes in the fair value of the hedged item that is attributable to the

hedged risk.

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2. Accounting policies continued

p) Financial instruments continued

Derivative instruments continued

The effective portion of changes in the fair value relating to the spot element of derivatives that are designated and qualify as cash

flow hedges is deferred in other comprehensive income. The gain or loss relating to the ineffective portion of the gain or loss is

recognised immediately in the Income Statement. Amounts deferred in other comprehensive income are recycled through the

Income Statement in the periods when the hedged item affects the Income Statement. When a hedging instrument expires or is sold,

or when a hedge no longer meets the criteria for hedge accounting, any cumulative gain or loss existing in equity at the time remains

in equity and is recognised when the forecast transaction is ultimately recognised in the Income Statement. When a forecast

transaction is no longer expected to occur, the cumulative gain or loss that was reported in equity is immediately transferred to the

Income Statement within ‘net exchange gain/(loss) on derivatives – fair value through profit and loss’. If a derivative instrument is not

designated as a hedge, the subsequent change to the fair value is recognised in the Income Statement within operating expenses or

interest depending upon the nature of the instrument.

Where the Group hedges net investments in foreign operations through derivative instruments or foreign currency borrowings, the

gains or losses on the effective portion of the change in fair value of derivatives that are designated and qualify as a hedge of a net

investment, or the gains or losses on the retranslation of the borrowings are recognised in other comprehensive income and are

reclassified to the Income Statement when the foreign operation that is hedged is disposed of.

Cash settled equity swaps are classified as fair value through profit and loss.

q) Foreign currency translation

Functional and presentation currency

Items included in the financial statements of each of the Group’s entities are measured using the currency of the primary economic

environment in which the entity operates (the functional currency). The consolidated financial statements are presented in sterling

which is the Company’s functional and the Group’s presentation currency.

Transactions in foreign currencies

Transactions denominated in foreign currencies within each entity in the Group are translated into the functional currency at the

exchange rate prevailing at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies, which are

held at the year end, are translated into the functional currency at the exchange rate ruling at the balance sheet date (closing rate).

Exchange differences on monetary items are recognised in the Income Statement in the period in which they arise, except where

these exchange differences form part of a net investment in overseas subsidiaries of the Group, in which case such differences are

recognised in other comprehensive income.

Translation of the results of overseas businesses

The results of overseas subsidiaries are translated into the Group’s presentation currency of sterling each month at the average

exchange rate for the month, weighted according to the phasing of the Group’s trading results. The average exchange rate is used,

as it is considered to approximate the actual exchange rates on the date of the transactions. The assets and liabilities of such

undertakings are translated at the closing rates. Differences arising on the retranslation of the opening net investment in subsidiary

companies, and on the translation of their results, are recognised in other comprehensive income.

Goodwill and fair value adjustments arising on the acquisition of a foreign operation are treated as assets and liabilities of the foreign

operation and translated at the closing rate.

The principal exchange rates used were as follows:

	Average rate		Closing rate
	52 weeks to	52 weeks to	As at	As at
	30 March	1 April	30 March	1 April
	2024	2023	2024	2023
Euro	1.16	1.16	1.17	1.14
US Dollar	1.26	1.20	1.26	1.24
Chinese Yuan Renminbi	9.01	8.27	9.13	8.51
Hong Kong Dollar	9.84	9.43	9.89	9.73
South Korean Won	1,657	1,577	1,702	1,613
Japanese Yen	182	163	191	165

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2. Accounting policies continued

r) Adjusted profit before taxation

In order to provide additional understanding of the underlying performance of the Group’s ongoing business, the Group’s results

include a presentation of Adjusted operating profit and Adjusted profit before taxation (adjusted PBT). Adjusted PBT is defined as

profit before taxation and before adjusting items. Adjusting items are those items which, in the opinion of the Directors, should be

excluded in order to provide a consistent and comparable view of the performance of the Group’s ongoing business. Generally,

this will include those items that are largely one-off and/or material in nature as well as income or expenses relating to acquisitions

or disposals of businesses or other transactions of a similar nature, including the impact of changes in fair value of expected future

payments or receipts relating to these transactions. Adjusting items are identified and presented on a consistent basis each year

and a reconciliation of adjusted PBT to profit before taxation is included in the financial statements. Adjusting items and their related

tax impacts, as well as adjusting taxation items, are added back to/deducted from profit attributable to owners of the Company to

arrive at adjusted earnings per share. Refer to note 6 for further details on adjusting items and note 10 for details on adjusted

earnings per share.

3. Segmental analysis

The Chief Operating Decision Maker has been identified as the Board of Directors. The Board reviews the Group’s internal

reporting in order to assess performance and allocate resources. Management has determined the operating segments based on

the reports used by the Board. The Board considers the Group’s business through its two channels to market, being retail/wholesale

and licensing.

Retail/wholesale revenues are generated by the 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 speciality accounts. The flow

of global product between retail and wholesale channels and across our regions is monitored and optimised at a corporate level and

implemented via the Group’s inventory hubs and principal distribution centres situated in Europe, the USA, Mainland China and

Hong Kong S.A.R., China.

Licensing revenues are generated through the receipt of royalties from global licensees of beauty products, eyewear and from

licences relating to the use of non-Burberry trademarks in Japan.

The Board assesses channel performance based on a measure of adjusted operating profit. This measurement basis excludes the

effects of adjusting items. The measure of earnings for each operating segment that is reviewed by the Board includes an allocation

of corporate and central costs. Interest income and charges are not included in the result for each operating segment that is

reviewed by the Board.

	Retail/Wholesale		Licensing		Total
	52 weeks to	52 weeks to	52 weeks to	52 weeks to	52 weeks to	52 weeks to
	30 March	1 April	30 March	1 April	30 March	1 April
	2024	2023	2024	2023	2024	2023
	£m	£m	£m	£m	£m	£m
Retail	2,400	2,501	–	–	2,400	2,501
Wholesale	506	543	–	–	506	543
Licensing	–	–	63	51	63	51
Total segment revenue	2,906	3,044	63	51	2,969	3,095
Inter-segment revenue 1	–	–	( 1)	(1)	( 1)	(1)
Revenue from external customers	2,906	3,044	62	50	2,968	3,094
Depreciation and amortisation	( 379)	(341)	–	–	( 379)	(341)
Net impairment charge of property, plant and equipment	( 5)	(2)	–	–	( 5)	(2)
Net impairment charge of right-of-use assets	( 9)	(5)	–	–	( 9)	(5)
Other non-cash items:
Share-based payments	( 16)	(19)	–	–	( 16)	(19)
Adjusted operating profit	359	587	59	47	418	634
Adjusting items 4					–	21
Finance income					31	21
Finance expense					( 66)	(42)
Profit before taxation					383	634

1. Inter-segment transfers or transactions are entered into under the normal commercial terms and conditions that would be available to unrelated third parties.

2. Depreciation and amortisation for the 52 weeks to 1 April 2023 was presented excluding £3 million arising as a result of the Group’s restructuring programme, which was

presented as an adjusting item (refer to note 6).

3. Net impairment charge of right-of-use assets for the 52 weeks to 1 April 2023 was presented excluding a reversal of £6 million relating to charges as a result of the impact of

COVID-19 and a net charge of £3 million arising as a result of the Group’s restructuring programme, which were presented as adjusting items (refer to note 6).

4. Adjusting items relate to the Retail and Wholesale segment. Refer to note 6 for details of adjusting items.

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3. Segmental analysis continued

	Retail/Wholesale		Licensing		Total
	52 weeks to	52 weeks to	52 weeks to	52 weeks to	52 weeks to	52 weeks to
	30 March	1 April	30 March	1 April	30 March	1 April
	2024	2023	2024	2023	2024	2023
	£m	£m	£m	£m	£m	£m
Additions to non-current assets	399	350	–	–	399	350
Total segment assets	2,474	2,273	6	5	2,480	2,278
Goodwill					119	109
Cash and cash equivalents					441	1,026
Taxation					330	273
Total assets per Balance Sheet					3,370	3,686

Additional revenue analysis

All revenue is derived from contracts with customers. The Group derives retail and wholesale revenue from contracts with customers

from the transfer of goods and related services at a point in time. Licensing revenue is derived over the period the licence agreement

gives the customer access to the Group’s trademarks.

	52 weeks to	52 weeks to
	30 March	1 April
	2024	2023
Revenue by product division	£m	£m
Accessories	1,055	1,125
Women’s	860	867
Men’s	842	868
Children’s/Other	149	184
Retail/Wholesale	2,906	3,044
Licensing	62	50
Total	2,968	3,094

	52 weeks to	52 weeks to
	30 March	1 April
	2024	2023
Revenue by destination	£m	£m
Asia Pacific	1,286	1,297
EMEIA	1,017	1,004
Americas	603	743
Retail/Wholesale	2,906	3,044
Licensing	62	50
Total	2,968	3,094

1. EMEIA comprises Europe, Middle East, India and Africa.

Entity-wide disclosures

Revenue derived from external customers in the UK totalled £295 million for the 52 weeks to 30 March 2024 (last year: £257 million).

Revenue derived from external customers in foreign countries totalled £2,673 million for the 52 weeks to 30 March 2024 (last year:

£2,837 million). This amount includes £531 million of external revenues derived from customers in the USA (last year: £661 million)

and £648 million of external revenues derived from customers in Mainland China (last year: £683 million).

The total of non-current assets, other than financial instruments, and deferred tax assets located in the UK is £523 million

(last year: £485 million). The remaining £1,168 million of non-current assets are located in other countries (last year: £1,094 million),

with £352 million located in the USA (last year: £318 million) and £200 million located in Mainland China (last year: £235 million).

177

Burberry Annual Report 2023/24

Financial Statements | Notes to the Financial Statements

4. Net operating expenses

		52 weeks to	52 weeks to
		30 March	1 April
		2024	2023
	Note	£m	£m
Other operating income		( 13)	(12)
Selling and distribution costs		1,248	1,207
Administrative expenses		356	353
		1,591	1,548
Adjusting operating income	6	–	(34)
Adjusting operating expenses	6	–	12
		–	(22)
Net operating expenses		1,591	1,526

5. Profit before taxation

		52 weeks to	52 weeks to
		30 March	1 April
		2024	2023
	Note	£m	£m
Adjusted profit before taxation is stated after charging/(crediting):
Depreciation of property, plant and equipment
Within cost of sales		2	2
Within selling and distribution costs		84	76
Within administrative expenses		17	17
Depreciation of right-of-use assets
Within cost of sales		1	–
Within selling and distribution costs		214	191
Within administrative expenses		19	18
Amortisation of intangible assets
Within selling and distribution costs		1	1
Within administrative expenses		41	36
Loss on disposal of intangible assets		3	–
Gain on modification of right-of-use assets		( 4)	(2)
Net impairment charge of property, plant and equipment	13	5	2
Net impairment charge of right-of-use assets	14	9	5
Employee costs	28	572	565
Other lease expense
Property lease variable lease expense	21	111	125
Property lease in holdover expense	21	18	20
Non-property short-term lease expense	21	12	11
Net exchange loss on revaluation of monetary assets and liabilities		20	10
Net gain on derivatives – fair value through profit and loss		( 7)	(9)
Receivables net impairment charge		4	2

1. Depreciation of right-of-use assets within administrative expenses for the 52 weeks to 1 April 2023 was presented excluding £3 million arising as a result of the Group’s

restructuring programme, which was presented as an adjusting item (refer to note 6).

2. Net impairment charge of right-of-use assets for the 52 weeks to 1 April 2023 was presented excluding a reversal of £6 million relating to charges as a result of the impact of

COVID-19 and a net charge of £3 million arising as a result of the Group’s restructuring programme, which were presented as adjusting items (refer to note 6).

3. Employee costs for the 52 weeks to 1 April 2023 was presented excluding a charge of £10 million arising as a result of the Group’s restructuring programme, which was

presented as an adjusting item (refer to note 6).

178

Burberry Annual Report 2023/24

Financial Statements | Notes to the Financial Statements

6. Adjusting items

	52 weeks to	52 weeks to
	30 March	1 April
	2024	2023
	£m	£m
Adjusting items
Adjusting operating items
Impact of COVID-19:
Impairment reversal relating to retail cash generating units	–	(6)
Impairment reversal relating to inventor y	–	(1)
COVID-19-related rent concessions	–	(13)
COVID-19-related government grant income	–	(2)
Other adjusting items:
Gain on disposal of propert y	–	(19)
Restructuring costs	–	16
Revaluation of deferred consideration liabilit y	–	2
Total adjusting operating items	–	(23)
Adjusting financing items
Finance charge on adjusting items	–	2
Total adjusting financing items	–	2
Tax on adjusting items	–	6
Total adjusting items (post-tax)	–	(15)

		52 weeks to	52 weeks to
		30 March	1 April
		2024	2023
	Note	£m	£m
Analysis of adjusting operating items:
Included in Cost of sales (Impairment reversal relating to inventor y )		– (1)
Included in Operating expenses	4	–	12
Included in Other operating income	4	–	(34)
Total		–	(23)

No adjusting items have been recorded for the 52 weeks to 30 March 2024. Adjusting items related to prior periods were as follows:

Impact of COVID-19

Impairment of retail cash generating units

During the 52 weeks to 1 April 2023, a net impairment reversal of £6 million, and an associated tax charge of £1 million, were

recorded following the reassessment of the COVID-19 related impairment provision. Any charges or reversals from the reassessment

of the original impairment adjusting item, had they arisen, would have been included in this adjusting item. Refer to notes 13 and 14

for details of impairment of retail cash generating units.

Impairment of inventory

During the 52 weeks to 1 April 2023, reversals of inventory provisions of £1 million were recorded and presented as adjusting items.

This was relating to inventory which had been provided for as an adjusting item at the previous year end and had either been sold, or

was expected to be sold, at a higher net realisable value than had been assumed when the provision had been initially estimated. All

other charges and reversals relating to inventory provisions have been recorded in adjusted operating profit. Refer to note 17 for

details of inventory provisions.

COVID-19-related rent concessions

During the 52 weeks to 1 April 2023, eligible rent forgiveness amounts relating to COVID-19 were treated as negative variable

lease payments, which resulted in a credit of £13 million recorded within other operating income. This income was presented as

an adjusting item given that the amendment to IFRS 16 was only applicable for a limited period of time and it explicitly related to

COVID-19. The amendment expired on 30 June 2022 however the Group continued to apply the same accounting treatment applying

the principles of IFRS 9 for any ongoing COVID-19 related rent forgiveness. A related tax charge of £3 million was also recognised in

the prior year.

COVID-19-related grant income

During the 52 weeks to 1 April 2023, the Group recorded grant income of £2 million within other operating income relating to government

support to alleviate the impact of COVID-19. This income was presented as an adjusting item as it was explicitly related to COVID-19, and the

arrangements were expected to last for a limited period of time. A related tax charge of £1 million was also recognised in the prior year.

179

Burberry Annual Report 2023/24

Financial Statements | Notes to the Financial Statements

6. Adjusting items continued

Other adjusting items

Gain on disposal of property

During the 52 weeks to 1 April 2023, the Group completed the sale of an owned property in the USA for cash proceeds of £22 million

resulting in a net gain on disposal of £19 million, recorded within other operating income. The net gain on disposal was recognised as

an adjusting item, in accordance with the Group’s accounting policy, as it was considered to be material and one-off in nature.

A related tax charge of £5 million was also recognised in the prior year.

Restructuring costs

During the 52 weeks to 1 April 2023, restructuring costs of £16 million were incurred primarily as a result of the organisational

efficiency programme announced in July 2020, which completed last year. The costs principally related to impairment charges

on non-retail assets and redundancies and were recorded in operating expenses. They were presented as an adjusting item,

in accordance with the Group’s accounting policy, as the anticipated cost of the restructuring programme was considered material

and discrete in nature. A related tax credit of £4 million was also recognised in the prior year.

Items relating to the deferred consideration liability

On 22 April 2016, the Group entered into an agreement to transfer the economic right of the non-controlling interest in Burberry

Middle East LLC to the Group in exchange for consideration of contingent payments to be made to the minority shareholder over the

period ending 30 March 2024. Contingent payments of £5 million remain outstanding at 30 March 2024, which will be paid once all

required documentation is complete.

During the 52 weeks to 1 April 2023, a charge of £2 million in relation to the revaluation of this balance was recognised in operating

expenses. No tax was recognised as the future payments were not considered to be deductible for tax purposes. This was presented

as an adjusting item in accordance with the Group’s accounting policy, as it arose from changes in the value of the liability for

expected future payments relating to the purchase of a non-controlling interest in the Group.

7. Auditor remuneration

Fees incurred during the year in relation to audit and non-audit services are analysed below:

	52 weeks to	52 weeks to
	30 March	1 April
	2024	2023
	£m	£m
Audit services in respect of the financial statements of the Company and consolidation	0.5	0.5
Audit services in respect of the financial statements of subsidiary companies	2.9	2.7
Audit-related assurance services	0.1	0.2
Other non-audit-related services	0.2	0.1
Total	3.7	3.5

8. Financing

		52 weeks to	52 weeks to
		30 March	1 April
		2024	2023
	Note	£m	£m
Finance income – amortised cost		9	3
Bank interest income – fair value through profit and loss		22	18
Finance income		31	21
Interest expense on lease liabilities	21	( 43)	(31)
Interest expense on overdrafts		( 7)	(2)
Interest expense on borrowings		( 4)	(4)
Bank charges		( 1)	(1)
Other finance expense		( 11)	(4)
Finance expense		( 66)	(42)
Finance charge on adjusting items	6	–	(2)
Net finance expense		( 35)	(23)

1. During the 52 weeks to 1 April 2023, interest expense on lease liabilities of £31 million excluded £2 million arising as a result of the Group’s restructuring programme, which

was presented as an adjusting item (refer to note 6).

180

Burberry Annual Report 2023/24

Financial Statements | Notes to the Financial Statements

9. Taxation

Analysis of charge for the year recognised in the Group Income Statement:

	52 weeks to	52 weeks to
	30 March	1 April
	2024	2023
	£m	£m
Current ta x
UK corporation ta x
Current tax on income for the 52 weeks to 30 March 2024 at 25% (last year: 19%)	104	116
Double taxation relief	( 3)	(5)
Adjustments in respect of prior years 1	44	12
Foreign ta x	145	123
Current tax on income for the year	26	34
Adjustments in respect of prior years 1	(35)	3
	(9)	37
Total current ta x	136	160
Deferred ta x
UK deferred ta x
Origination and reversal of temporary differences	5	4
Adjustments in respect of prior years 1	(1)	–
Foreign deferred ta x	4	4
Origination and reversal of temporary differences	(28)	(26)
Adjustments in respect of prior years 1	–	4
	(28)	(22)
Total deferred ta x	(24)	(18)
Total tax charge on profit	112	142

1. Adjustments in respect of prior years relate mainly to adjustments to estimates of prior period tax liabilities and a net increase in provisions for uncertain tax positions (where

in some instances the provision also includes offsetting relief in a different jurisdiction) and tax accruals.

Analysis of charge for the year recognised in other comprehensive income and directly in equity:

	52 weeks to	52 weeks to
	30 March	1 April
	2024	2023
	£m	£m
Current ta x
Recognised in other comprehensive income:
Current tax (credit) / charge on exchange differences on loans (foreign currency translation reserve)	(1)	1
Total current tax recognised in other comprehensive income	(1)	1
Deferred ta x
Recognised in equit y :
Deferred ta x charge/(credit) on share options (retained earnings)	2	(2)
Total deferred tax recognised directly in equity	2	(2)

181

Burberry Annual Report 2023/24

Financial Statements | Notes to the Financial Statements

9. Taxation continued

The tax rate applicable on profit varied from the standard rate of corporation tax in the UK due to the following factors:

	52 weeks to	52 weeks to
	30 March	1 April
	2024	2023
	£m	£m
Profit before taxation	383	634
Tax at 25% (last year: 19%) on profit before taxation	97	120
Rate adjustments relating to overseas profits	–	1
Permanent differences	3	4
Current year tax losses not recognised	3	–
Prior year temporary differences and tax losses recognised	1	(3)
Adjustments in respect of prior years	8	19
Adjustments to deferred tax relating to changes in tax rates	–	1
Total taxation charge	112	142

Total taxation recognised in the Group Income Statement arises on the following items:

	52 weeks to	52 weeks to
	30 March	1 April
	2024	2023
	£m	£m
Tax on adjusted profit before taxation	112	136
Tax on adjusting items	–	6
Total taxation charge	112	142

Factors affecting future tax charges

Uncertain tax positions

The Group operates in numerous tax jurisdictions around the world and is subject to factors that may affect future tax charges

including transfer pricing, tax rate changes, tax legislation changes, tax authority interpretation, expiry of statutes of limitation,

tax litigation, and resolution of tax audits and disputes.

At any given time, the Group has open years outstanding in various countries and is involved in tax audits and disputes, some of

which may take several years to resolve. Provisions are based on best estimates and management’s judgements concerning the

likely ultimate outcome of any audit or dispute. Management considers the specific circumstances of each tax position and takes

external advice, where appropriate, to assess the range of potential outcomes and estimate additional tax that may be due.

At 30 March 2024 the Group recognised provisions of £91 million in respect of uncertain tax positions (increasing from £86 million

in 2023), being provisions of £131 million net of expected reimbursements of £40 million (last year: £103 million net of expected

reimbursements of £17 million). The majority of these provisions relate to the tax impact of intra-group transactions between the

UK and the various jurisdictions in which the Group operates, as would be expected for a Group operating internationally.

The Group believes that it has made adequate provision in respect of additional tax liabilities that may arise from open years, tax

audits and disputes. However, the actual liability for any particular issue may be higher or lower than the amount provided, resulting

in a negative or positive effect on the tax charge in any given year. A reduction in the tax charge may also arise for other reasons

such as an expiry of the relevant statute of limitations. Depending on the final outcome of tax audits which are currently in progress,

statute of limitations expiry, and other factors, an impact on the tax charge could arise. The tax impact of intra-group transactions is a

complex area and resolution of matters can take many years. Given the inherent uncertainty, it is difficult to predict the timing of

when these matters will be resolved and the quantum of the ultimate resolution. Management estimate that the outcome across all

matters under dispute or in negotiation between governments could be in the range of a decrease of £32 million, to an increase of

£47 million, in the uncertain tax position over the next 12 months.

Legislative changes

The OECD Pillar Two GloBE Rules introduce a global minimum corporate tax rate of 15% applicable to multinational enterprise groups with global

revenue over €750 million. All participating OECD members are required to incorporate these rules into national legislation. The Group will be

subject to the Pillar Two Model Rules from FY 2024/25 but does not meet the threshold for application of the Pillar One transfer pricing rules.

The Group applies the temporary exception from the accounting requirements for deferred taxes in IAS 12. Accordingly, the Group neither

recognises nor discloses information about deferred tax assets and liabilities related to Pillar Two income taxes.

UK legislation in relation to Pillar Two was substantively enacted on 20 June 2023 and applies to the Group for the reporting period

beginning 31 March 2024. The Group has performed an analysis of the potential exposure to Pillar Two income taxes. The analysis of the

potential exposure to Pillar Two income taxes is based on the most recently submitted Country by Country Reporting available for the

constituent entities in the Group (for the 52 weeks to 1 April 2023). Based on the analysis, the transitional safe harbour relief should apply in

respect of most jurisdictions in which the Group operates. Although there are a limited number of jurisdictions where the transitional safe

harbour relief may not apply, the Group does not expect a material exposure to Pillar Two income taxes in those jurisdictions.

182

Burberry Annual Report 2023/24

Financial Statements | Notes to the Financial Statements

10. Earnings per share

The calculation of basic earnings per share is based on profit or loss attributable to owners of the Company for the year divided by

the weighted average number of ordinary shares in issue during the year. Basic and diluted earnings per share based on adjusted

profit before taxation are also disclosed to indicate the underlying profitability of the Group.

	52 weeks to	52 weeks to
	30 March	1 April
	2024	2023
	£m	£m
Attributable profit for the year before adjusting items	270	475
Effect of adjusting items 1 (after taxation)	–	15
Attributable profit for the year	270	490

1. Refer to note 6 for details of adjusting items.

The weighted average number of ordinary shares represents the weighted average number of Burberry Group plc ordinary shares in

issue throughout the year, excluding ordinary shares held in the Group’s ESOP trusts and treasury shares held by the Company or its

subsidiaries. This includes the effect of the cancellation of 20.5 million shares during the period as a result of the share buyback

programmes (last year: 21.1 million). Refer to note 25 for additional information on the share buybacks.

Diluted earnings per share is based on the weighted average number of ordinary shares in issue during the year. In addition, account

is taken of any options and awards made under the employee share incentive schemes, which will have a dilutive effect when

exercised. Refer to note 28 for additional information on the terms and conditions of the employee share incentive schemes.

	52 weeks to	52 weeks to
	30 March	1 April
	2024	2023
	Millions	Millions
Weighted average number of ordinary shares in issue during the year	365.0	386.1
Dilutive effect of the employee share incentive schemes	1.2	1.9
Diluted weighted average number of ordinary shares in issue during the year	366.2	388.0

	52 weeks to	52 weeks to
	30 March	1 April
	2024	2023
	Pence	Pence
Earnings per share
Basic	74.1	126.9
Diluted	73.9	126.3
Adjusted earnings per share
Basic	74.1	123.1
Diluted	73.9	122.5

11. Dividends paid to owners of the Company

	52 weeks to	52 weeks to
	30 March	1 April
	2024	2023
	£m	£m
Prior year final dividend paid 44.5p per share (last year: 35.4p)	167	140
Interim dividend paid 18.3p per share (last year: 16.5p)	66	63
Total	233	203

A final dividend in respect of the 52 weeks to 30 March 2024 of 42.7p (last year: 44.5p) per share, amounting to £151 million, has

been proposed for approval by the shareholders at the Annual General Meeting subsequent to the balance sheet date. The final

dividend has not been recognised as a liability at the year end and will be paid on 2 August 2024 to the shareholders on the register

at the close of business on 28 June 2024. The ex-dividend date is 27 June 2024 and the final day for dividend reinvestment plan

(DRIP) elections is 12 July 2024.

183

Burberry Annual Report 2023/24

Financial Statements | Notes to the Financial Statements

12. Intangible assets

		Trademarks,
		licences and other		Intangible assets in
		intangible	Computer	the course of
	Goodwill	assets	software	construction	Total
Cost	£m	£m	£m	£m	£m
As at 2 April 2022	115	13	258	55	441
Effect of foreign exchange rate changes	–	–	1	–	1
Additions	–	1	13	32	46
Disposals	–	–	(42)	–	(42)
Reclassifications from assets in the course of construction	–	–	18	(18)	–
As at 1 April 2023	115	14	248	69	446
Effect of foreign exchange rate changes	(6)	–	(2)	–	(8)
Additions	–	1	8	44	53
Business combination	16	1	–	–	17
Disposals	–	–	(5)	(22)	(27)
Reclassifications from assets in the course of construction	–	–	30	(30)	–
As at 30 March 2024	125	16	279	61	481
Accumulated amortisation and impairment
As at 2 April 2022	6	7	169	19	201
Effect of foreign exchange rate changes	–	–	2	–	2
Charge for the year	–	1	36	–	37
Disposals	–	–	(42)	–	(42)
As at 1 April 2023	6	8	165	19	198
Effect of foreign exchange rate changes	–	–	(2)	–	(2)
Charge for the year	–	1	41	–	42
Disposals	–	–	(5)	(19)	(24)
As at 30 March 2024	6	9	199	–	214
Net book value
As at 30 March 2024	119	7	80	61	267
As at 1 April 2023	109	6	83	50	248

Impairment testing of goodwill

The carrying value of the goodwill allocated to cash generating units:

	As at	As at
	30 March	1 April
	2024	2023
	£m	£m
Mainland China	46	50
South Korea	24	26
Retail and W holesale segment 1	35	19
Other	14	14
Total	119	109

1. Goodwill which arose on acquisitions of Burberry Manifattura S.R.L. and Burberry Tecnica S.R.L. has been allocated to the group of cash generating units which make up the

Group’s Retail and Wholesale operating segment cash generating unit. This reflects the lowest level at which the goodwill is being monitored by management.

The Group tests goodwill for impairment annually or when there is an indication that goodwill might be impaired. The recoverable

amount of all cash generating units has been determined on a value-in-use basis. Value-in-use calculations for each cash generating

unit are based on projected pre-tax discounted cash flows together with a discounted terminal value. The cash flows have been

discounted at pre-tax rates reflecting the Group’s weighted average cost of capital adjusted for country-specific tax rates and risks.

Where the cash generating unit has a non-controlling interest which was recognised at a value equal to its proportionate interest in

the net identifiable assets of the acquired subsidiary at the acquisition date, the carrying amount of the goodwill has been grossed

up, to include the goodwill attributable to the non-controlling interest, for the purpose of impairment testing the goodwill attributable

to the cash generating unit. The key assumptions contained in the value-in-use calculations include the future revenues, the

operating profit margins achieved and the discount rates applied.

The value-in-use calculations have been prepared using management’s cost and revenue projections for the next three years to

27 March 2027 and a longer-term growth rate of 5% to 30 March 2029. A terminal value has been included in the value-in-use

calculation based on the cash flows for the year ending 30 March 2029, incorporating the assumption that growth beyond

30 March 2029 is equivalent to nominal inflation rates, assumed to be 2%, which are not significant to the assessment.

The value-in-use estimates indicated that the recoverable amount of the cash generating unit exceeded the carrying value for each of

the cash generating units. As a result, no impairment has been recognised in respect of the carrying value of goodwill in the year.

184

Burberry Annual Report 2023/24

Financial Statements | Notes to the Financial Statements

12. Intangible assets continued

Impairment testing of goodwill continued

The goodwill arising on the acquisition of Burberry Tecnica S.R.L. has been allocated to the group of cash generating units which

make up the Group’s retail/wholesale operating segment. This reflects the level at which the goodwill is being monitored by

management. For the material goodwill balances of Mainland China, South Korea and the Retail and Wholesale segment,

management has considered the potential impact of reasonably possible changes in assumptions on the recoverable amount of

goodwill. The sensitivities include applying a 10% reduction in revenue and gross profit and the associated impact on operating profit

margin from management’s base cash flow projections, considering the macroeconomic and political uncertainty risk on the Group’s

retail operations and on the global economy. Under this scenario, the estimated recoverable amount of goodwill in Mainland China,

South Korea and the Retail and Wholesale segment still exceeded the carrying value.

The pre-tax discount rates for Mainland China, South Korea and the Retail and Wholesale segment were 12%, 10% and 11%

respectively (last year: Mainland China 12%, South Korea 12%, and the Retail and Wholesale segment 12%). No reasonably possible

change in these pre-tax discount rates would result in the carrying value to exceed the estimated recoverable amount of goodwill.

The other goodwill balance of £14 million (last year: £14 million) consists of amounts relating to eight cash generating units, none of

which have goodwill balances individually exceeding £6 million as at 30 March 2024 (last year: £7 million).

13. Property, plant and equipment

			Fixtures,	Assets in the
	Freehold land	Leasehold	fittings and	course of
	and buildings	improvements	equipment	construction	Total
Cost	£m	£m	£m	£m	£m
As at 2 April 2022	116	550	348	47	1,061
Effect of foreign exchange rate changes	6	6	9	1	22
Additions	–	56	25	66	147
Disposals	(1)	(53)	(27)	(1)	(82)
Reclassifications from assets in the course of construction	–	26	11	(37)	–
As at 1 April 2023	121	585	366	76	1,148
Effect of foreign exchange rate changes	(2)	(27)	(8)	(3)	(40)
Additions	–	88	32	44	164
Business combination	–	–	1	–	1
Disposals	–	(69)	(47)	–	(116)
Reclassifications from assets in the course of construction	–	54	14	(68)	–
Reclassifications to assets held for sale	(28)	–	–	–	(28)
As at 30 March 2024	91	631	358	49	1,129
Accumulated depreciation and impairment
As at 2 April 2022	56	388	294	1	739
Effect of foreign exchange rate changes	4	6	8	–	18
Charge for the year	3	64	28	–	95
Disposals	(1)	(53)	(27)	(1)	(82)
Impairment charge on assets	–	2	–	–	2
As at 1 April 2023	62	407	303	–	772
Effect of foreign exchange rate changes	–	(17)	(8)	–	(25)
Charge for the year	2	69	32	–	103
Disposals	–	(69)	(47)	–	(116)
Impairment charge on assets	–	4	1	–	5
Reclassifications to assets held for sale	(16)	–	–	–	(16)
As at 30 March 2024	48	394	281	–	723
Net book value
As at 30 March 2024	43	237	77	49	406
As at 1 April 2023	59	178	63	76	376

185

Burberry Annual Report 2023/24

Financial Statements | Notes to the Financial Statements

13. Property, plant and equipment continued

During the 52 weeks to 30 March 2024, management carried out a review of retail cash generating units comprising right-of-use

asset and property, plant and equipment, for any indication of impairment or reversal of impairments previously recorded. Where

indications of impairment charges or reversals were identified, the impairment review compared the value-in-use of the cash generating

units to their net book values at 30 March 2024. The pre-tax cash flow projections used for this review were based on financial plans

of expected revenues and costs of each retail cash generating unit, approved by management, reflecting their latest plans over the

next three years to 27 March 2027. For the remainder of the asset life, the cashflows assume industry growth rates of 5% and cost

inflation rates appropriate to each store’s location, followed by longer-term growth rates of mid-single digits and inflation rates

appropriate to each store’s location. The pre-tax discount rates used in these calculations were between 10.2% and 12.1% (last year:

between 11.1% and 13.7%) based on the Group’s weighted average cost of capital adjusted for country-specific borrowing costs, tax

rates and risks for those countries in which a charge or reversal was incurred. Where indicators of impairment have been identified

and the value-in-use was less than the carrying value of the cash generating unit, an impairment of property, plant and equipment

and right-of-use asset was recorded. Where the value-in-use was greater than the net book value, and the cash generating unit had

been previously impaired, the impairment was reversed, to the extent that could be supported by the value-in use and allowing for

any depreciation that would have been incurred during the period since the impairment was recorded.

During the 52 weeks to 30 March 2024, a charge of £14 million (last year: net charge of £7 million) was recorded within net operating

expenses as a result of the annual review of impairment for retail store assets. A charge of £5 million (last year: charge of £2 million)

was recorded against property, plant and equipment and a charge of £9 million (last year: net charge of £5 million) was recorded

against right-of-use assets. Impairments previously charged as an adjusting item related to the impact of COVID-19 were

reassessed, resulting in no impairment charge or reversal being presented as an adjusting item in the current year (last year: net

reversal of £6 million recorded against right-of-use assets). Refer to note 14 for further details of right-of-use assets. Refer to note 6

for details of adjusting items.

The impairment charge recorded in property, plant and equipment related to six retail cash generating units (last year: two retail cash

generating units) for which the total recoverable amount at the balance sheet date is £15 million (last year: £1 million).

Management has considered the potential impact of changes in assumptions on the impairment recorded against the Group’s

retail assets. Given the macroeconomic and political uncertainty risk on the Group’s retail operations and on the global economy,

management has considered sensitivities to the impairment charge as a result of changes to the estimate of future revenues

achieved by the retail stores. The sensitivities applied are an increase or decrease in revenue of 10% from the estimate used to

determine the impairment charge or reversal. We have also considered retail cash generating units with no indicators of impairment

but with a significant asset balance. It is estimated that a 10% decrease/increase in revenue assumptions for the 52 weeks to

29 March 2025, with no change to subsequent forecast revenue growth rate assumptions, would result in a less than £19 million

increase/less than £9 million decrease in the impairment charge of retail store assets in the 52 weeks to 30 March 2024.

As at 30 March 2024, the Group had one freehold property that met the criteria to be classified as held for sale. This asset is required

to be recorded at the lower of carrying value or fair value less any costs to sell. As the fair value less any costs to sell exceeded the

carrying value, the related asset was recorded at its carrying value of £12 million. The sale of this property is expected to complete

within the next 12 months.

No assets were classified as held for sale at 1 April 2023. During the 52 weeks to 1 April 2023, the sale of three freehold properties

with a carrying value of £13 million, which were previously classified as assets held for sale, was completed resulting in a net gain on

disposal of £19 million.

186

Burberry Annual Report 2023/24

Financial Statements | Notes to the Financial Statements

14. Right-of-use assets

	Property right-
	of-use assets
Net book value	£m
As at 2 April 2022	880
Effect of foreign exchange rate changes	14
Additions	157
Remeasurements	113
Depreciation for the year	(212)
Impairment charge on right-of-use assets	(10)
Impairment reversal on right-of-use assets	8
As at 1 April 2023	950
Effect of foreign exchange rate changes	(27)
Additions	162
Business combination	2
Remeasurements	169
Depreciation for the year	(234)
Impairment charge on right-of-use assets	(9)
As at 30 March 2024	1,013

As a result of the assessment of retail cash generating units for impairment, an impairment charge of £9 million (last year: net

impairment reversal of £1 million) was recorded for impairment of right-of-use assets related to trading impacts. Refer to note 13

for further details of impairment assessment of retail cash generating units. The net impairment reversal in the prior year comprised

a reversal of £6 million arising from the change in assumption due to the impact of COVID-19 on the value-in-use of retail cash

generating units and a charge of £5 million relating to other trading impacts. The reversal relating to COVID-19 was presented as an

adjusting item (refer to note 6).

The impairment charge recorded in right-of-use assets relates to seven retail cash generating units (last year: three retail cash

generating units) for which the total recoverable amount at the balance sheet date is £44 million (last year: £17 million).

At 1 April 2023, a net impairment charge of £3 million was recognised in relation to non-retail right-of-use assets arising as a result of

the Group’s restructuring programmes and was presented as an adjusting item (refer to note 6).

As a result, the impairment charge for right-of-use assets was £9 million (last year: net impairment charge of £2 million).

15. Deferred taxation

Deferred tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets against current tax

liabilities and there is an intention to settle on a net basis, and to the same fiscal authority. The assets and liabilities presented in the

Balance Sheet, after offset, are shown in the table below:

	As at	As at
	30 March	1 April
	2024	2023
	£m	£m
Deferred tax assets	208	197
Deferred tax liabilities	( 1)	(1)
Net amount	207	196

	52 weeks to	52 weeks to
	30 March	1 April
	2024	2023
The movement in the deferred tax account is as follows:	£m	£m
At start of year	196	174
Effect of foreign exchange rate changes	(11)	2
Credited to the Income Statement	24	18
Business combination	(1)	–
Credited to Other comprehensive income	1	–
(Charged)/credited to Equit y	(2)	2
At end of year	207	196

187

Burberry Annual Report 2023/24

Financial Statements | Notes to the Financial Statements

15. Deferred taxation continued

The movement in the net deferred tax balances during the year is as follows:

		Unrealised
		inventory profit
		and other
	Capital	inventory	Share	Unused tax
	allowances	provisions	schemes	losses	Leases	Other	Total
	£m	£m	£m	£m	£m	£m	£m
As at 2 April 2022	19	97	5	3	32	18	174
Effect of foreign exchange rate changes	1	1	–	–	–	–	2
Credited/(charged) to the Income Statement	(6)	10	1	11	(1)	3	18
Credited to Equit y	–	–	2	–	–	–	2
As at 1 April 2023	14	108	8	14	31	21	196
Effect of foreign exchange rate changes	(1)	(7)	–	–	(1)	(2)	(11)
Credited/(charged) to the Income Statement	(11)	23	(3)	15	5	(5)	24
Business combination	–	–	–	–	–	(1)	(1)
Credited to Other comprehensive income	–	–	–	–	–	1	1
Charged to Equit y	–	–	(2)	–	–	–	(2)
As at 30 March 2024	2	124	3	29	35	14	207

1. Deferred balances within Other relate largely to temporary differences arising on other provisions and accruals.

Deferred tax assets are recognised for tax losses carried forward to the extent that the realisation of the related benefit through

future taxable profits is probable. The Group did not recognise deferred tax assets of £50 million (last year: £46 million) in respect of

losses and temporary timing differences amounting to £201 million (last year: £181 million) that can be set off against future taxable

income. There is a time limit for the recovery of £1 million of these potential assets (last year: £6 million) which ranges from one to

five years (last year: one to seven years).

The Group has recognised a deferred tax asset of £35 million (not including profit in stock consolidation adjustments) in Mainland

China, of which £25 million arises due to losses in FY 2022/23 and FY 2023/24. Group financial forecasts indicate that the subsidiary

in Mainland China is expected to generate future taxable profits which will enable the deferred tax asset to be utilised in full.

During the 52 weeks to 30 March 2024, the Group adopted the IAS 12 amendment for Deferred Tax related to Assets and Liabilities

arising from a Single Transaction. For jurisdictions where tax deductions do not follow IFRS 16 accounting, the Group recognises a

deferred tax asset on the lease liability and a separate deferred tax liability on the right-of-use asset. The Group applies jurisdictional

netting and the net position is included in the “Leases” column above.

Included within other temporary differences above is a deferred tax liability of £1 million (last year: £1 million) relating to unremitted

overseas earnings. No deferred tax liability is provided in respect of any future remittance of earnings of foreign subsidiaries where

the Group is able to control the remittance of earnings and it is probable that such earnings will not be remitted in the foreseeable

future, or where no liability would arise on the remittance. The aggregate amount of temporary differences in respect of unremitted

earnings is £255 million (last year: £281 million).

188

Burberry Annual Report 2023/24

Financial Statements | Notes to the Financial Statements

16. Trade and other receivables

	As at	As at
	30 March	1 April
	2024	2023
	£m	£m
Non-current
Other financial receivables	47	45
Other non-financial receivables	–	2
Prepayments	5	5
Total non-current trade and other receivables	52	52
Current
Trade receivables	189	184
Provision for expected credit losses	( 10)	(7)
Net trade receivables	179	177
Other financial receivables	27	25
Other non-financial receivables	86	59
Prepayments	33	32
Accrued income	15	14
Total current trade and other receivables	340	307
Total trade and other receivables	392	359

1. Other financial receivables include rental deposits and other sundry debtors.

2. Other non-financial receivables relates primarily to indirect taxes and other taxes and duties.

Included in total trade and other receivables are non-financial assets of £124 million (last year: £98 million).

The Group’s impairment policies and the calculation of any allowances for credit losses are detailed in note 27 in the credit

risk section.

17. Inventories

	As at	As at
	30 March	1 April
	2024	2023
	£m	£m
Raw materials	29	15
Work in progress	3	1
Finished goods	475	431
Total inventories	507	447

	As at	As at
	30 March	1 April
	2024	2023
	£m	£m
Total inventories, gross	580	504
Provisions	( 73)	(57)
Total inventories, net	507	447

Inventory provisions of £73 million (last year: £57 million) are recorded, representing 12.6% (last year: 11.4%) of the gross value of

inventory. The provisions reflect management’s best estimate of the net realisable value of inventory, where this is considered to be

lower than the cost of the inventory.

The cost of inventories recognised as an expense and included in cost of sales amounted to £922 million (last year: £874 million).

Taking into account factors impacting the inventory provisioning including the proportion of inventory sold through loss making

channels being higher or lower than expected, management considers that a reasonable potential range of outcomes could result

in an increase in inventory provisions of £15 million or a decrease in inventory provisions of £22 million in the next 12 months.

This would result in a potential range of inventory provisions of 8.8% to 15.3% as a percentage of the gross value of inventory as at

30 March 2024.

The net movement in inventory provisions included in cost of sales for the 52 weeks to 30 March 2024 was a charge of £39 million

(last year: release of £1 million). The total reversal of inventory provisions during the current year, which is included in the net

movement, was £15 million (last year: reversal of £22 million). In the prior year, a reversal of £1 million was included within both of

these amounts upon reassessment of the provision related to the impact of COVID-19 and was presented as an adjusting item.

Refer to note 6 for details of adjusting items.

189

Burberry Annual Report 2023/24

Financial Statements | Notes to the Financial Statements

18. Derivative financial instruments

Master netting arrangements

The Group’s forward foreign exchange contracts are entered into under International Swaps and Derivatives Association (ISDA)

master netting arrangements. In general, under such agreements the amounts owed by each counterparty on a single day in respect

of all transactions outstanding in the same currency are aggregated into a single amount that is payable by one party to the other.

In certain circumstances, such as when a default occurs, all outstanding transactions under the agreement are terminated, the

termination value is assessed and only a single net amount is payable in settlement of all transactions. The ISDA agreements do not

meet the criteria for offsetting in the Balance Sheet as the Group’s right to offset is enforceable only on the occurrence of future

events such as default. The Group has amended the ISDA agreement with two banks to require it to net settle its forward foreign

exchange contracts. There were no derivatives subject to net settlement agreements and offset on the Balance Sheet at 30 March

2024 (last year: nil). The Group’s Balance Sheet would not be materially different if it had offset its forward foreign exchange

contracts and equity swap contracts subject to the standard ISDA agreements.

Derivative financial assets

	As at	As at
	30 March	1 April
	2024	2023
	£m	£m
Forward foreign exchange contracts – fair value hedging instrument: cash flow hedges	–	–
Forward foreign exchange contracts – fair value through profit and loss	2	4
Equity swap contracts – fair value through profit and loss	–	3
Total position	2	7
Comprising:
Total current position	2	7

1. Forward foreign exchange contracts classified as fair value through profit and loss are used for cash management and hedging monetary assets and liabilities. At 30 March 2024,

all such contracts had maturities of no greater than three months from the balance sheet date (last year: no greater than three months from the balance sheet date).

Derivative financial liabilities

	As at	As at
	3 March	1 April
	2024	2023
	£m	£m
Forward foreign exchange contracts – fair value hedging instrument: cash flow hedges	(2)	(1)
Forward foreign exchange contracts – fair value through profit and loss	(1)	–
Equity swap contracts – fair value through profit and loss	(1)	–
Total position	( 4)	(1)
Comprising:
Total current position	( 4)	(1)

1. Forward foreign exchange contracts classified as fair value through profit and loss are used for cash management and hedging monetary assets and liabilities. At 30 March

2024, all such contracts had maturities of no greater than three months from the balance sheet date (last year: no greater than two months from the balance sheet date).

Net derivative financial instruments

The notional principal amounts of the outstanding forward foreign exchange and equity swap contracts at year end are:

	As at	As at
	30 March	1 April
	2024	2023
	£m	£m
Forward foreign exchange contracts – fair value hedging instrument: cash flow hedges	71	155
Forward foreign exchange contracts – fair value through profit and loss	439	332
Equity swap contracts – fair value through profit and loss	4	7

190

Burberry Annual Report 2023/24

Financial Statements | Notes to the Financial Statements

18. Derivative financial instruments continued

Effect of hedge accounting on the financial position and performance

The effects of the foreign currency cash flow hedging instruments on the Group’s financial position and performance are as follows:

	As at	As at
	30 March	1 April
	2024	2023
Foreign currency forwards
Carrying amount (assets)	–	–
Notional amount	–	£18m
Maturity date	–	Jun 2023 –
		Nov 2023
Hedge ratio	–	1:1
Change in spot value of outstanding hedging instruments since start of year	–	–
Change in value of hedged item used to determine hedge effectiveness	–	–
Weighted average hedged rate of outstanding contracts (including forward points) – EUR	–	1.1369
Carrying amount (liabilities)	(£2m)	(£1m)
Notional amount	£71m	£137m
Maturity date	May 2024 –	Jun 2023 –
	Aug 2024	May 2024
Hedge ratio	1:1	1:1
Change in spot value of outstanding hedging instruments since start of year	( £2m)	£1m
Change in value of hedged item used to determine hedge effectiveness	£2m	(£1m)
Weighted average hedged rate of outstanding contracts (including forward points) – EUR	1.1322	1.1221

The foreign currency forwards are denominated in the same currency as the highly probable future inventory purchases (EUR),

therefore the hedge ratio is 1:1.

The contractual maturity profile of non-current financial liabilities is shown in note 27. For further details of cash flow hedging,

refer to note 27 in the market risk section.

19. Cash and cash equivalents

	As at	As at
	30 March	1 April
	2024	2023
	£m	£m
Cash and cash equivalents held at amortised cost
Cash at bank and in hand	180	152
Short-term deposits	83	77
Cash and cash equivalents held at fair value through profit and loss	263	229
Short-term deposits	178	797
Total	441	1,026

Cash and cash equivalents classified as fair value through profit and loss relate to deposits held in low volatility net asset value

money market funds. The cash is available immediately and, since the funds are managed to achieve low volatility, no significant

change in value is anticipated. The funds are monitored to ensure there are no significant changes in value.

As at 30 March 2024 and 1 April 2023, no impairment losses were identified on cash and cash equivalents held at amortised cost.

191

Burberry Annual Report 2023/24

Financial Statements | Notes to the Financial Statements

20. Trade and other payables

	As at	As at
	30 March	1 April
	2024	2023
	£m	£m
Non-current
Other payables	3	–
Deferred income and non-financial accruals	9	20
Contract liabilities	51	57
Total non-current trade and other payables	63	77
Current
Trade payables	180	186
Other taxes and social security costs	45	50
Other payables	21	10
Accruals	165	199
Deferred income and non-financial accruals	11	14
Contract liabilities	12	13
Deferred consideration 2	5	5
Total current trade and other payables	439	477
Total trade and other payables	502	554

1. Other payables comprise interest and employee-related liabilities.

2. Deferred consideration relates to the acquisition of the economic right to the non-controlling interest in Burberry Middle East LLC on 22 April 2016. In the 52 weeks

to 30 March 2024 no payments were made in relation to Burberry Middle East LLC (last year: £6 million). Contingent payments of £5 million remain outstanding at

30 March 2024, which will be paid once all required documentation is complete.

Included in total trade and other payables are non-financial liabilities of £128 million (last year: £153 million).

Contract liabilities

Retail contract liabilities relate to unredeemed balances on issued gift cards and similar products, and advanced payments received

for sales which have not yet been delivered to the customer. Licensing contract liabilities relate to deferred revenue arising from the

upfront payment for the Beauty licence which is being recognised in revenue over the term of the licence on a straight-line basis,

reflecting access to the trademark over the licence period to 2032.

	As at	As at
	30 March	1 April
	2024	2023
	£m	£m
Retail contract liabilities	6	6
Licensing contract liabilities	57	64
Total contract liabilities	63	70

The amount of revenue recognised in the year relating to contract liabilities at the start of the year is set out in the following table.

All revenue in the year relates to performance obligations satisfied in the year. All contract liabilities at the end of the year relate to

unsatisfied performance obligations.

	52 weeks to	52 weeks to
	30 March	1 April
	2024	2023
	£m	£m
Retail revenue relating to contract liabilities	3	4
Deferred revenue from Beauty licence	7	6
Revenue recognised that was included in contract liabilities at the start of the year	10	10

192

Burberry Annual Report 2023/24

Financial Statements | Notes to the Financial Statements

21. Lease liabilities

	Property lease
	liabilities
	£m
Balance as at 2 April 2022	1,058
Effect of foreign exchange rate changes	20
Created during the year	157
Amounts paid	(243)
Discount unwind	33
Remeasurements	98
Balance as at 1 April 2023	1,123
Effect of foreign exchange rate changes	(30)
Created during the year	159
Business combination	1
Amounts paid	(274)
Discount unwind	43
Remeasurements	166
Balance as at 30 March 2024	1,188

	As at	As at
	30 March	1 April
	2024	2023
	£m	£m
Analysis of total lease liabilities:
Non-current	959	902
Current	229	221
Total	1,188	1,123

1. The amount paid of £274 million (last year: £243 million) includes £231 million (last year: £210 million) arising as a result of a financing cash outflow and £43 million (last year:

£33 million) arising as a result of an operating cash outflow.

2. Remeasurements relate largely to changes in the lease liabilities that arise as a result of extending the lease term on an existing lease, management’s reassessment of the

lease term based on existing break or extension options in the contract, as well as those linked to an inflation index or rate review. In the prior year, remeasurements included

COVID-19-related rent forgiveness of £13 million which was recognised as a credit in the Income Statement and was included as an adjusting item. Refer to note 6.

The Group enters into property leases for retail properties, including stores, concessions, warehouse and storage locations and office

property. The remaining lease terms for these properties range from a few months to 16 years (last year: few months to 15 years).

Many of the leases include break options and/or extension options to provide operational flexibility. Some of the leases for concessions

have rolling lease terms or rolling break options. Management assess the lease term at inception based on the facts and circumstances

applicable to each property including the period over which the investment appraisal was initially considered.

Potential future undiscounted lease payments related to periods following the exercise date of an extension option not included

in the lease term, and therefore not included in lease liabilities are approximately £434 million (last year: £399 million) in relation

to the next available extension option and are assessed as not reasonably certain to be exercised. Potential future undiscounted

lease payments related to periods following the exercise date of a break option not included in the lease term, and therefore not

included in lease liabilities, are approximately £113 million (last year: £130 million) in relation to break options which are expected to

be exercised. During the 52 weeks to 30 March 2024, significant judgements regarding breaks and options in relation to individually

material leases resulted in approximately £100 million (last year: £38 million) in undiscounted future cash flows not being included in

the initial right-of-use assets and lease liabilities.

Management reviews the retail lease portfolio on an ongoing basis, taking into account retail performance and future trading

expectations. Management may exercise extension options and negotiate lease extensions or modifications. In other instances,

management may exercise break options, negotiate lease reductions or decide not to negotiate a lease extension at the end

of the lease term. The most significant factor impacting future lease payments is changes management choose to make to the

store portfolio.

Future increases and decreases in rent linked to an inflation index or rate review are not included in the lease liability until the change

in cash flows is legally agreed. Approximately 19% (last year: 18%) of the Group’s lease liabilities are subject to inflation linked

reviews and 32% (last year: 30%) are subject to rent reviews. Rental changes linked to inflation or rent reviews typically occur on an

annual basis.

Many of the retail property leases also incur payments based on a percentage of revenue achieved at the location. Changes in future

variable lease payments will typically reflect changes in the Group’s retail revenues, including the impact of regional mix. The Group

expects the relative proportions of fixed and variable lease payments to remain broadly consistent in future years.

The Group also enters into non-property leases for equipment, advertising fixtures and machinery. Generally, these leases do not

include break or extension options. The most significant impact to future cash flows relating to leased equipment, which are primarily

short-term leases, would be the Group’s usage of leased equipment to a greater or lesser extent.

193

Burberry Annual Report 2023/24

Financial Statements | Notes to the Financial Statements

21. Lease liabilities continued

The Group’s accounting policy for leases is set out in note 2. Details of income statement charges and income from leases are set out

in note 5. The right-of-use asset categories on which depreciation is incurred are presented in note 14. Interest expense incurred on

lease liabilities is presented in note 8. Commitments relating to off-balance sheet leases are presented in note 26. The maturity of

undiscounted future lease liabilities are set out in note 27.

Total cash outflows in relation to leases in the 52 weeks ended 30 March 2024 are £417 million (last year: £396 million). This relates

to payments of £231 million on lease principal (last year: £210 million), £43 million on lease interest (last year: £33 million),

£113 million on variable lease payments (last year: £122 million), and £30 million on other lease payments principally relating to

short-term leases and leases in holdover (last year: £31 million).

22. Provisions for other liabilities and charges

	Property obligations	Other	Total
	£m	£m	£m
Balance as at 2 April 2022	49	15	64
Effect of foreign exchange rate changes	–	2	2
Created during the year	7	5	12
Utilised during the year	(3)	(1)	(4)
Released during the year	(4)	(8)	(12)
Balance as at 1 April 2023	49	13	62
Effect of foreign exchange rate changes	(3)	–	(3)
Created during the year	5	4	9
Utilised during the year	(1)	(1)	(2)
Released during the year	(2)	(7)	(9)
Balance as at 30 March 2024	48	9	57

The net charge in the year for property obligations is £3 million (last year: £3 million), relating to additional property reinstatement

costs. The net credit in the year for other provisions of £3 million (last year: net credit of £3 million) includes charges of £4 million

(last year: £5 million) relating to expected future outflows for property disputes, employee matters and tax compliance, and reversals

of £7 million (last year: £8 million) relating to employee matters and other property matters.

	As at	As at
	30 March	1 April
	2024	2023
	£m	£m
Analysis of total provisions:
Non-current	37	40
Current	20	22
Total	57	62

The non-current provisions relate to property reinstatement costs which are expected to be utilised within 14 years (last year:

15 years).

23. Bank overdrafts

Included within bank overdrafts is £78 million (last year: £65 million) representing balances on cash pooling arrangements in

the Group.

The Group has a number of committed and uncommitted arrangements agreed with third parties. At 30 March 2024, the Group held

£1 million (last year: £nil) bank overdrafts excluding balances on cash pooling arrangements.

The fair value of overdrafts approximates the carrying amount because of the short maturity of these instruments.

24. Borrowings

On 21 September 2020, Burberry Group plc issued medium term notes with a face value of £300 million and 1.125% coupon maturing

on 21 September 2025 (the sustainability bond). Proceeds from the sustainability bond have been used by the Group to finance projects

which support the Group’s sustainability agenda. There are no financial penalties for not using the proceeds as anticipated. Interest on

the sustainability bond is payable semi-annually. The carrying value of the bond at 30 March 2024 is £299 million (last year: £298

million); all movements on the bond are non-cash. The fair value of the bond at 30 March 2024 is £281 million (last year: £273 million).

On 26 July 2021, the Group entered into a £300 million multi-currency sustainability-linked revolving credit facility (RCF) with a

syndicate of banks, maturing on 26 July 2026. There were no drawdowns or repayments of the RCF during the current or previous

year, and at 30 March 2024 there were no outstanding drawings.

The Group is in compliance with the financial and other covenants within the facilities above and has been in compliance throughout

the financial period.

194

Burberry Annual Report 2023/24

Financial Statements | Notes to the Financial Statements

25. Share capital and reserves

Allotted, called up and fully paid share capital	Number	£m
Ordinary shares of 0.05p (last year: 0.05p) each
As at 2 April 2022	405,107,301	0.2
Allotted on exercise of options during the year	236,123	–
Cancellation of shares	(21,075,496)	–
As at 1 April 2023	384,267,928	0.2
Allotted on exercise of options during the year	51,904	–
Cancellation of shares	(20,504,089)	–
As at 30 March 2024	363,815,743	0.2

The Company has a general authority from shareholders, renewed at each Annual General Meeting, to repurchase a maximum of 10%

of its issued share capital. During the 52 weeks to 30 March 2024, the Company entered into agreements to purchase, at fair value,

a total of £400 million of its own shares, excluding stamp duty and fees, through two share buyback programmes of £200 million

each (last year: two share buyback programmes of £200 million each). Both programmes were completed during the year.

The cost of own shares purchased by the Company, as part of a share buyback programme, is offset against retained earnings, as

the amounts paid reduce the profits available for distribution by the Company. When shares are cancelled, a transfer is made from

retained earnings to the capital reserve, equivalent to the nominal value of the shares purchased and subsequently cancelled.

In the 52 weeks to 30 March 2024, 20.5 million shares were cancelled (last year: 21.1 million).

As at 30 March 2024 the Company held 5.2 million treasury shares (last year: 6.1 million), with a market value of £63 million (last year:

£157 million) based on the share price at the reporting date. The treasury shares held by the Company are related to the share

buyback programme completed during the 53 weeks to 2 April 2022. During the 52 weeks to 30 March 2024, 0.9 million treasury

shares were transferred to ESOP trusts (last year: 2.3 million). During the 52 weeks to 30 March 2024, no treasury shares were

cancelled (last year: none).

The cost of shares purchased by ESOP trusts are offset against retained earnings, as the amounts paid reduce the profits available

for distribution by the Company. As at 30 March 2024, the cost of own shares held by ESOP trusts and offset against retained

earnings is £34 million (last year: £42 million). As at 30 March 2024, the ESOP trusts held 1.9 million shares (last year: 2.3 million) in

the Company, with a market value of £23 million (last year: £60 million). In the 52 weeks to 30 March 2024 the ESOP trusts and the

Company have waived their entitlement to dividends.

Other reserves in the Statement of Changes in Equity consist of the capital reserve, the foreign currency translation reserve, and the

hedging reserves. The hedging reserves consist of the cash flow hedge reserve and the net investment hedge reserve.

			Hedging reserves	Foreign currency
	Capital	Cash flow	Net investment	translation
	reserve	hedges	hedge	reserve	Total
	£m	£m	£m	£m	£m
Balance as at 2 April 2022	41	(1)	5	218	263
Other comprehensive income:
Cash flow hedges – gains deferred in equit y		–	1	–	– 1
Foreign currency translation differences	–	–	–	14	14
Tax on other comprehensive income	–	(1)	–	–	(1)
Total comprehensive income for the year	–	–	–	14	14
Balance as at 1 April 2023	41	(1)	5	232	277
Other comprehensive income:
Cash flow hedges – losses deferred in equit y	–	(4)	–	–	(4)
Cash flow hedges – transferred to income	–	1	–	–	1
Foreign currency translation differences	–	–	–	(34)	(34)
Tax on other comprehensive income	–	1	–	–	1
Total comprehensive income for the year	–	(2)	–	(34)	(36)
Balance as at 30 March 2024	41	(3)	5	198	241

As at 30 March 2024 the amount held in the hedging reserve relating to matured net investment hedges is £5 million net of tax

(last year: £5 million).

195

Burberry Annual Report 2023/24

Financial Statements | Notes to the Financial Statements

26. Commitments

Financial commitments

The Group leases various retail stores, offices, warehouses and equipment under non-cancellable lease arrangements. The liabilities

for these leases are recorded on the Group’s Balance Sheet when the Group obtains control of the underlying asset. The Group has

additional commitments relating to leases where the Group has entered into an obligation but does not yet have control of the

underlying asset. The future lease payments to which the Group is committed, over the expected lease term, which are not recorded

on the Group’s Balance Sheet are as follows:

	As at	As at
	30 March	1 April
	2024	2023
	£m	£m
Amounts falling due:
Within 1 year	2	–
Between 2 and 5 years	49	14
After 5 years	120	9
Total	171	23

During the 52 weeks to 30 March 2024, the Group entered into two significant retail store lease agreements in EMEIA for which

possession of the property is not yet obtained. The Group has committed to £138 million in future undiscounted lease payments in

relation to these leases, which have expected lease terms of 12 and 15 years. A judgement has been made that the Group is

reasonably certain to exercise an extension option in relation to one of these leases, representing £38 million of the commitment.

Capital commitments

Contracted capital commitments represent contracts entered into by the year end for future work in respect of major capital

expenditure projects relating to property, plant and equipment and intangible assets, which are not recorded on the Group’s Balance

Sheet and are as follows:

	As at	As at
	30 March	1 April
	2024	2023
	£m	£m
Capital commitments contracted but not provided for:
Property, plant and equipment	67	38
Intangible assets	4	3
Total	71	41

196

Burberry Annual Report 2023/24

Financial Statements | Notes to the Financial Statements

27. Financial risk management

The Group’s principal financial instruments comprise derivative instruments, cash and cash equivalents, borrowings (including

overdrafts), deferred consideration, trade and other receivables, and trade and other payables arising directly from operations.

The Group’s activities expose it to a variety of financial risks: market risks (including foreign exchange risk and interest rate risk),

credit risk, liquidity risk and capital risk.

Risk management is carried out by the Group treasury department (Group Treasury) based on forecast business requirements

to reduce financial risk and to ensure sufficient liquidity is available to meet foreseeable needs and to invest in cash and cash

equivalents safely and profitably. The Group uses derivative instruments to hedge certain risk exposures. Group Treasury does not

operate as a profit centre and transacts only in relation to the underlying business requirements. The policies of Group Treasury are

reviewed and approved by the Board of Directors annually.

Market risk

Foreign exchange risk

The Group operates internationally and is exposed to foreign exchange risk arising from various non-sterling currencies.

The Group’s Income Statement is affected by transactions denominated in foreign currency. To reduce exposure to currency

fluctuations, the Group has a policy of hedging foreign currency denominated transactions by entering into forward foreign

exchange contracts (refer to note 18). These transactions are recorded as cash flow hedges. The Group’s foreign currency

transactions arise principally from purchases and sales of inventory.

The Group’s treasury risk management policy is to hedge, prior to market opening, 70-90% of its anticipated third party foreign

currency exposure by currency, by season and where the net currency exposure is greater than £20 million. Currently, the Group

does not hedge anticipated intercompany foreign currency transactions. The Group uses forward exchange contracts to hedge its

currency risk.

The Group designates the spot component of foreign currency forwards in hedge relationships and applies a ratio of 1:1. The forward

elements of the foreign currency forward are excluded from designation of the hedging instrument and are separately accounted for

as a cost of hedging and recognised in operating expenses on a discounted basis.

The Group determines the existence of an economic relationship between the hedging instrument and the hedged item based on the

currency, amount and timing of their respective cash flows. The Group assesses whether the derivative designated in each hedging

relationship is expected to be and has been effective in offsetting changes in cash flows of the hedged item using the dollar

offset method.

In these hedge relationships, ineffectiveness may arise if the timing of the forecast transaction changes from what was originally

estimated, or if there are changes in the credit risk of the Group or the derivative counterparty. There was no ineffectiveness in the

52 weeks ending 30 March 2024 (last year: no ineffectiveness).

The Group monitors the desirability of hedging the net assets of overseas subsidiaries when translated into sterling for reporting

purposes. The Group would use forward foreign exchange contracts to hedge net assets of overseas subsidiaries, relating to surplus

cash whose remittance is foreseeable. There were no outstanding net investment hedges as at 30 March 2024 (last year: no

outstanding net investment hedges).

At 30 March 2024, the Group has performed a sensitivity analysis to determine the effect of sterling strengthening/weakening by

10% (last year: 10%) against other currencies with all other variables held constant. The effect on translating foreign currency

denominated net cash, trade, intercompany and other financial receivables and payables and financial instruments at fair value

through profit or loss as at 30 March 2024 would have been to increase/decrease operating profit for the year by £4 million (last

year: increase/decrease £4 million) on a post-tax basis. The effect on translating forward foreign exchange contracts designated as

cash flow hedges as at 30 March 2024 would have been to decrease/increase equity by £6 million (last year: decrease/increase

£12 million) on a post-tax basis.

The following table shows the extent to which the Group has monetary assets and liabilities at the year end in currencies other than

the local currency of operation, after accounting for the effect of any specific forward foreign exchange contracts used to manage

currency exposure. Monetary assets and liabilities refer to cash, deposits, overdrafts, borrowings and other amounts to be received

or paid in cash. Amounts exclude intercompany balances which eliminate on consolidation. Foreign exchange differences on

retranslation of these assets and liabilities are recognised in net operating expenses.

		As at 30 March 2024			As at 1 April 2023
	Monetary	Monetary		Monetary	Monetary
	assets	liabilities	Net	assets	liabilities	Net
	£m	£m	£m	£m	£m	£m
Sterling	1	(2)	(1)	–	(2)	(2)
US Dollar	1	(6)	(5)	1	(18)	(17)
Euro	58	(66)	(8)	40	(59)	(19)
Chinese Yuan Renminbi	7	–	7	5	–	5
Other currencies	5	(33)	(28)	5	(34)	(29)
Total	72	(107)	(35)	51	(113)	(62)

197

Burberry Annual Report 2023/24

Financial Statements | Notes to the Financial Statements

27. Financial risk management continued

Market risk continued

Interest rate risk

The Group’s exposure to market risk for changes in interest rates relates primarily to cash, borrowings, short-term deposits

and overdrafts.

The floating rate financial liabilities at 30 March 2024 are £78 million (last year: £65 million) due to cash pool overdrafts. The fixed

rate financial liabilities at 30 March 2024 are borrowings of £299 million (last year: £298 million). If interest rates on floating rate

financial liabilities had been 100 basis points higher/lower (last year: 100 basis points), excluding the impact on cash pool overdraft

balances and with all other variables held constant, post-tax profit for the year would have been £nil (last year: £nil) lower/higher,

as a result of higher/lower interest expense.

The floating rate financial assets as at 30 March 2024 comprise short-term deposits of £261 million (last year: £874 million), interest

bearing current accounts of £nil (last year: £2 million) and cash pool asset balances of £85 million (last year: £67 million). At 30 March

2024, if interest rates on floating rate financial assets had been 100 basis points higher/lower (last year: 100 basis points), excluding

the impact on cash pool asset balances and with all other variables held constant, post-tax profit for the year would have been

£4 million (last year: £8 million) higher/lower, as a result of higher/lower interest income.

Credit risk

Trade receivables

The Group has no significant concentrations of credit risk. The trade receivables balance is spread across a large number of different

customers with no single debtor during the year representing more than 6% of the total balance due (last year: 5%). The Group has

policies in place to ensure that wholesale sales are made to customers with an appropriate credit history. Sales to retail customers

are made in cash or via major credit cards. In some retail locations, where the Group’s store is contained within a department store or

mall, for example a concession, the sales proceeds may be initially held by the operator of the wider location, giving rise to retail

debtors. In addition, receivables balances are monitored on an ongoing basis with the result that the Group’s exposure to bad debts

is not significant and default rates have historically been very low.

The Group applies the simplified approach when measuring the trade receivable expected credit losses. The approach uses a

lifetime expected loss allowance. To measure the expected credit losses, trade receivables have been grouped based on segment,

geographical region and the days past due. The expected loss rates are reviewed annually, or when there is a significant change in

external factors potentially impacting credit risk, and are updated where management’s expectations of credit losses change.

No changes have been made to the expected loss rates during the 52 weeks to 30 March 2024.

The expected credit loss allowance for receivables was determined as follows:

		Less than	Less than	Less than	Over
		1 month	2 months	3 months	3 months
	Current	overdue	overdue	overdue	overdue	Total
As at 30 March 2024	£m	£m	£m	£m	£m	£m
Trade receivables
Weighted average expected loss rate %	2%	5%	10%	12%	39%
Gross carrying amount of trade receivables	154	18	6	4	7	189
Loss allowance	(3)	(1)	(1)	(1)	(4)	(10)
As at 1 April 2023
Trade receivables
Weighted average expected loss rate %	2%	4%	6%	27%	37%
Gross carrying amount of trade receivables	151	19	8	3	3	184
Loss allowance	(3)	(1)	–	–	(3)	(7)

1. The loss allowance contains expected credit loss and specific loss provisions.

198

Burberry Annual Report 2023/24

Financial Statements | Notes to the Financial Statements

27. Financial risk management continued

Credit risk continued

Trade receivables continued

The closing loss allowances for receivables reconcile as follows:

	Receivables
	£m
As at 2 April 2022	7
Effect of foreign exchange rate changes	–
Impairment provision recognised in profit or loss during the year	3
Receivables written off during the year as uncollectable	(1)
Unused amount reversed	(2)
As at 1 April 2023	7
Effect of foreign exchange rate changes	–
Impairment provision recognised in profit or loss during the year	6
Receivables written off during the year as uncollectable	(1)
Unused amount reversed	(2)
As at 30 March 2024	10

In aggregate, as at 30 March 2024, the movement in the impairment provision on trade and other receivables and recorded in the

Income Statement was a net charge of £4 million (last year: £1 million), all of which relates to contracts with customers.

The maximum exposure to credit risk at the reporting date with respect to trade and other receivables is approximated by the

carrying amount on the Balance Sheet.

Receivables excluding trade receivables

The counterparty credit risk of other receivables is reviewed on a regular basis and the impairment is assessed as follows:

At inception the receivable is recorded net of expected 12 month credit losses. If a significant change in the credit risk occurs during

the life of the receivable, credit losses are recorded in the profit and loss account and the effective interest is calculated using the

gross carrying amount of the asset. If a loss event occurs, the effective interest is calculated using the amortised cost of the asset

net of any credit losses.

During the year ended 31 March 2013, the Group entered into a retail leasing arrangement in the Republic of Korea. As part of this

arrangement, a KRW 27 billion (£19 million) 15 year interest-free loan was provided to the landlord. The Group holds a registered

mortgage over the leased property for the equivalent value of the loan which acts as collateral. At 30 March 2024, the discounted fair

value of the loan is £13 million (last year: £14 million). The book value of the loan, recorded at amortised cost, is £14 million (last year:

£14 million). Other than this arrangement, the Group does not hold any other collateral as security. Management considers that the

security provided by the mortgage is sufficient risk mitigation and hence the credit loss relating to this receivable is not significant.

Other financial assets

With respect to credit risk arising from other financial assets, which comprise cash and short-term deposits and certain derivative

instruments, the Group’s exposure to credit risk arises from the default of the counterparty with a maximum exposure equal to the

carrying value of these instruments. The Group has policies that limit the amount of credit exposure to any financial institution and

only deposits funds with independently rated financial institutions with a minimum rating of ‘A’ other than where required for

operational purposes. A total of £8 million (last year: £6 million) was held with institutions with a rating below ‘A’ at 30 March 2024.

These amounts are monitored on a weekly basis by the Treasury Committee.

199

Burberry Annual Report 2023/24

Financial Statements | Notes to the Financial Statements

27. Financial risk management continued

Liquidity risk

The Group’s financial risk management policy aims to ensure that sufficient cash is maintained to meet foreseeable needs and close

out market positions. Due to the dynamic nature of the underlying business, Group Treasury aims to maintain flexibility in funding by

keeping committed credit lines available. For further details, refer to notes 23 and 24.

All short-term trade and other payables, accruals, and bank overdrafts mature within one year or less. The carrying value of all

financial liabilities due in less than one year is equal to their contractual undiscounted cash flows, with the exception of lease

liabilities. The undiscounted contractual cash flows for lease liabilities due in less than one year is £282 million (last year:

£237 million).

The maturity profile of the contractual undiscounted cash flows of the Group’s non-current financial liabilities, excluding derivatives

used for hedging, is as follows:

		As at 30 March 2024			As at 1 April 2023
	Lease			Lease
	liabilities	Other	Total	liabilities	Other	Total
	£m	£m	£m	£m	£m	£m
In more than 1 year, but not more than 2 years	228	302	530	227	–	227
In more than 2 years, but not more than 3 years	181	–	181	186	300	486
In more than 3 years, but not more than 4 years	161	–	161	142	–	142
In more than 4 years, but not more than 5 years	108	–	108	122	–	122
In more than 5 years	459	1	460	330	–	330
Total financial liabilities	1,137	303	1,440	1,007	300	1,307

As at 30 March 2024, other non-current financial liabilities relate to borrowings of £299 million (last year: borrowings of

£298 million). Refer to note 24.

Capital risk

The Board reviews the Group’s capital allocation policy annually. The Group’s capital allocation framework defines its priorities

for uses of cash, underpinned by its principle to maintain a strong balance sheet with a solid investment grade credit rating.

The framework has four priorities for the use of cash generated from operations:

• re-investment in the business to drive organic growth

• maintaining a progressive dividend policy

• continuing to pursue selective inorganic strategic investment and

• to the extent that there is surplus capital to these needs, providing additional returns to shareholders

At 30 March 2024, the Group had net cash of £362 million (last year: £961 million), borrowings of £299 million (last year: £298 million)

and total equity excluding non-controlling interests of £1,147 million (last year: £1,533 million). The borrowings at 30 March 2024

relate to medium term notes with a face value of £300 million (last year: £300 million). For further details, refer to note 24. Potential

additional sources of funding available to the Group include undrawn and additional bank facilities, longer-term debt and equity

funding. The Group’s current capital resources, together with the potential additional sources of funding, are considered sufficient to

address the Group’s capital risk.

200

Burberry Annual Report 2023/24

Financial Statements | Notes to the Financial Statements

28. Employee costs

Staff costs, including the cost of Directors, incurred during the year are as shown below. Directors’ remuneration, which is separately

disclosed in the Directors’ Remuneration Report on pages 125 to 142 and forms part of these financial statements, includes, for those

share options and awards where performance obligations have been met, the notional gains arising on the future exercise but

excludes the charge in respect of these share options and awards recognised in the Group Income Statement.

	52 weeks to	52 weeks to
	30 March	1 April
	2024	2023
	£m	£m
Wages and salaries	474	468
Social security costs	56	60
Pension costs	21	20
	551	548
Termination benefits	5	8
Share-based compensation (all awards and options settled in shares)	16	19
Total	572	575

Employee costs for the 52 weeks to 1 April 2023 included a charge of £10 million arising as a result of the Group’s restructuring

programme which was presented as an adjusting item. Refer to note 6 for further details.

Pension costs include contributions to the Group’s defined contribution plan for eligible employees.

The average number of full-time equivalent employees (including Executive Directors) during the year was as follows:

		Number of employees
	52 weeks to	52 weeks to
	30 March	1 April
	2024	2023
EMEIA	4,591	4,394
Americas	1,291	1,303
Asia Pacific	3,287	3,171
Total	9,169	8,868

1. EMEIA comprises Europe, Middle East, India and Africa.

Shares and share options granted to Directors and employees

The Group operates a number of equity-settled share-based compensation schemes for its Directors and employees; the fair value

charge relating to these schemes is £16 million (last year: £19 million). Details of each of these schemes are set out in this note.

The share option schemes have been valued using the Black-Scholes option pricing model. The share awards have been valued using

the closing price of an ordinary share at the date of grant.

The key inputs used in the Black-Scholes pricing model to determine the fair value include: the share price at the commencement

date; the exercise price attached to the option; the expected life of the option; an appropriate risk-free interest rate; a dividend yield

discount for those schemes that do not accrue dividends during the course of the vesting period; and expected share price volatility,

which is determined by calculating the historical annualised standard deviation of the market price of Burberry Group plc shares over

a period of time, prior to the grant, equivalent to the expected life of the option.

Where applicable, equity swaps have been entered into to cover future employer’s national insurance liability (or overseas

equivalent) that may arise in respect of these schemes.

201

Burberry Annual Report 2023/24

Financial Statements | Notes to the Financial Statements

28. Employee costs continued

Shares and share options granted to Directors and employees continued

The Burberry Share Plan 2020 (the BSP)

The BSP was approved by shareholders and adopted by the Company in the year ended 27 March 2021 to replace the Burberry Group

plc Executive Share Plan (ESP) as the Group’s main long-term incentive plan.

Under the BSP rules, participants may be awarded either conditional share awards or phantom awards, up to a maximum value of

three times base salary per annum. Awards may be subject to performance underpins. If the Company does not meet one or more of

the performance underpins over the relevant vesting period, the Remuneration Committee would consider whether it is appropriate

to scale back the level of pay-out under the BSP award. BSP awards made to the Executive Directors in the year ending 30 March

2024 will vest in full on the third anniversary of the grant date, subject to continued employment. For BSP awards made to Executive

Directors in years ending before 1 April 2023, one third of the award will vest on the third anniversary of the grant date, one third of

the award will vest on the fourth anniversary of the grant date and the remaining balance of the award will vest on the fifth

anniversary of the grant date, subject to continued employment.

Awards made to senior employees will not be subject to performance conditions or underpins, and will vest in full on the third

anniversary of the grant date, subject to continued employment.

During the year, the fair value charge relating to the BSP awards was £11 million (last year: £9 million) and the following grants were

made under the BSP:

					Targets
Date of grant	Options granted	Fair value	Participant group	Performance conditions/underpins	Threshold	Maximum
27 July 2023	838,107	£22.48	Management	Continued service	N/A	N/A
27 July 2023	131,178	£22.48	Executive Directors	Underpins: Total revenue	£3,200m	N/A
				ROIC	WACC	N/A
				Brand and sustainabilit y	Reasonable	N/A
					progress
23 November 2023	33,268	£15.04	Management	Continued service	N/A	N/A

The fair values for the above grants are equivalent to the closing price of an ordinary share on the grant date as follows:

	27 July	23 November
	2023	2023
Share price at contract commencement date	£22.48	£15.04

Obligations under this plan will be met either by market purchase shares, the transfer of treasury shares or by the issue of ordinary

shares of the Company, for which the ESOP trust may be used to facilitate the process.

202

Burberry Annual Report 2023/24

Financial Statements | Notes to the Financial Statements

28. Employee costs continued

Shares and share options granted to Directors and employees continued

The Burberry Share Plan 2020 (the BSP) continued

Movements in the number of BSP share awards outstanding are as follows:

	52 weeks to	52 weeks to
	30 March	1 April
	2024	2023
Outstanding at start of year	2,261,952	1,701,810
Granted during the year	1,002,553	1,253,633
Lapsed and forfeited during the year	(362,276)	(539,186)
Exercised in the year	(649,492)	(154,305)
Outstanding at end of year	2,252,737	2,261,952
Exercisable at end of year	13,260	2,519
Vesting after end of year	2,239,477	2,259,433

Share awards outstanding at the end of the year have the following terms:

	Number of	Number of
	awards as at	awards as at
	30 March	1 April
Term of the award	2024	2023
20 August 2020 – 23 July 2023	–	636,732
19 November 2020 – 19 November 2023	–	6,933
27 July 2021 – 27 July 2024	437,233	559,954
18 November 2021 – 18 November 2024	5,134	6,761
27 July 2022 – 27 July 2027	104,131	104,131
27 July 2022 – 27 July 2025	669,799	860,513
24 November 2022 – 24 November 2025	86,928	86,928
27 July 2023 – 27 July 2026	916,244	–
23 November 2023 – 23 November 2026	27,477	–
23 November 2023 – 27 July 2026	5,791	–
Total	2,252,737	2,261,952

The weighted average term of the BSP awards is three years, and the weighted average share price at the date of exercise for

awards exercised in the period was £21.56.

The Burberry Group plc Executive Share Plan (the ESP)

The ESP was approved by the shareholders and adopted by the Company in the year ended 31 March 2015, with the final grant made

on 27 February 2020.

Under the ESP, participants were awarded shares, structured as either nil-cost options, conditional share awards or phantom awards,

up to a maximum value of normally four times base salary per annum. Thresholds and targets for all ESP schemes have now been

assessed and the number of shares awarded has been approved.

Obligations under this plan will be met either by market purchase shares, the transfer of treasury shares or by the issue of ordinary

shares of the Company, for which the ESOP trust may be used to facilitate the process.

During the year, the fair value charge relating to the ESP awards was £nil (last year: £1 million).

Movements in the number of ESP share awards outstanding are as follows:

	52 weeks to	52 weeks to
	30 March	1 April
	2024	2023
Outstanding at start of year	285,906	1,259,041
Lapsed and forfeited during the year	(19,239)	(736,848)
Exercised during the year	(117,276)	(236,287)
Outstanding at end of year	149,391	285,906
Exercisable at end of year	149,391	132,378
Vesting after end of year	–	153,528

The weighted average first available exercise date for the ESP scheme is 30 March 2024.

203

Burberry Annual Report 2023/24

Financial Statements | Notes to the Financial Statements

28. Employee costs continued

Shares and share options granted to Directors and employees continued

One-off awards

The Company grants conditional share awards as one-off awards. Some of these awards vest in tranches which vary by award and

are dependent upon continued employment over the vesting period.

The fair values for these awards are equivalent to the closing price of an ordinary share on the grant date.

During the year, the fair value charge relating to the one-off awards was £1 million (last year: £5 million).

Movements in the number of one-off share awards outstanding are as follows:

	52 weeks to	52 weeks to
	30 March	1 April
	2024	2023
Outstanding at start of year	340,749	1,063,048
Granted during the year	24,135	7,720
Lapsed and forfeited during the year	( 4,128)	(537,605)
Exercised during the year	(312,216)	(192,414)
Outstanding at end of year	48,540	340,749
Exercisable at end of year	40,808	31,311
Vesting after end of year	7,732	309,438

The weighted average first available exercise date for the one-off awards is 19 October 2024, and the latest vesting date is 27 July 2026.

The weighted average share price at the date of exercise for awards exercised in the period was £20.81.

Other schemes

The Group also grants to employees options under the Burberry Group plc ShareSave Plan 2021 (ShareSave), and free shares under

a Burberry Group plc Share Incentive Plan (SIP) for employees in the UK, and the Burberry Group plc International Free Share Plan

2021 (IFSP) for employees outside the UK. In the 52 weeks to 30 March 2024 and 1 April 2023, options were granted under

ShareSave with a three-year and five-year vesting period.

Additional awards were granted under the SIP and the IFSP, offering employees awards of ordinary shares in the Company at a £nil

exercise price. All awards vest after three years and the vesting of these share awards is dependent on continued employment over

the vesting period.

The fair value charge for these schemes was £3 million (last year: £4 million).

204

Burberry Annual Report 2023/24

Financial Statements | Notes to the Financial Statements

29. Acquisition of subsidiary

On 2 October 2023, Burberry Italy S.R.L., Burberry’s wholly-owned subsidiary, acquired a 100% shareholding in Burberry Tecnica,

S.R.L., from Italian technical outerwear supplier, Pattern SpA, a company incorporated in Italy, for total cash consideration of

£19 million. Consideration for this acquisition did not includes any contingent or deferred consideration.

Based in Turin, the activities of the business acquired revolve around the engineering and production of Burberry products.

The acquisition allows the Group to secure capacity, build technical outerwear capabilities and further embed sustainability into

its value chain.

The assets and liabilities recognised as a result of the acquisition are as follows:

	Provisional
	Fair value
	£m
Net assets acquired
Acquired intangible assets	1
Property, plant and equipment	1
Inventories	2
Right-of-use assets	2
Lease liabilities	(1)
Employee-related liabilities	(1)
Deferred tax liabilit y	(1)
Net assets acquired	3
Goodwill arising on acquisition	16
Total cost of acquisition	19

No receivables or contingent liabilities were acquired as a result of the acquisition.

The values used in accounting for the identifiable assets and liabilities of the acquisition are provisional in nature as they are still

being determined. If necessary, adjustments will be made to these carrying values and the related goodwill, within 12 months of the

acquisition date.

The goodwill arising on the acquisition of £16 million reflects the expected synergies from the vertical integration of engineering and

production of technical outerwear within the Group’s supply chain, together with the value of the retained workforce. The goodwill

has been allocated to the group of cash generating units which make up the Group’s retail/wholesale operating segment. £13 million

of the goodwill is expected to be deductible for tax purposes, giving rise to an overall tax benefit with an estimated net present value

of approximately £1 million.

The acquired business has made a contribution to Group revenue of £nil and had a negligible impact on Group profit before taxation

since acquisition. If the acquisition had occurred at the beginning of the financial year, the impact on the Group’s revenue and profit

or loss would not have been material.

30. Related party transactions

Transactions between the Company and its subsidiaries, which are related parties of the Company, have been eliminated on

consolidation and are not disclosed in this note. Total compensation in respect of key management, who are defined as the

Board of Directors and certain members of senior management, is considered to be a related party transaction.

The total compensation in respect of key management for the year was as follows:

	52 weeks to	52 weeks to
	30 March	1 April
	2024	2023
	£m	£m
Salaries, short-term benefits and social security costs	7	9
Share-based compensation (all awards and options settled in shares)	2	4
Total	9	13

1. Pension cash allowance is included within salaries, short-term benefits and social security costs.

The Group donates each year to The Burberry Foundation, an independent charity which meets the criteria to be reported as a related

party in accordance with IFRS. Charitable donations to The Burberry Foundation for the 52 weeks to 30 March 2024 were £2 million

(last year: £2 million).

There were no other material related party transactions in the year.

205

Burberry Annual Report 2023/24

Financial Statements | Notes to the Financial Statements

31. Subsidiary undertakings and investments

In accordance with Section 409 of the Companies Act 2006 a full list of related undertakings as at 30 March 2024, including their

country of incorporation and percentage share ownership, is disclosed below. Unless otherwise stated, all undertakings are

indirectly owned by Burberry Group plc and operate in the country of incorporation. All the subsidiary undertakings have been

consolidated as at 30 March 2024.

	Country/territory		Holding	Registered
Company name	of incorporation	Interest	(%)	office
Burberry Pacific Pty Ltd	Australia	Ordinary shares	100	1
Burberry (Austria) GmbH	Austria	Ordinary shares	100	2
Sandringham Bahrain SPC W.L.L.	Bahrain	Ordinary shares	100	3
Burberry Antwerp N V	Belgium	Ordinary shares	100	4
Burberry Brasil Comércio de Artigos de Vestuário e	Brazil	Quota	100	5
Acessórios Ltda
Burberry Canada Inc	Canada	Common shares	100	6
Burberry (Shanghai) Trading Co., Ltd	Mainland China	Equity interest	100	7
Burberry Czech Rep s.r.o.	Czech Republic	Ordinary shares	100	8
Burberry France SASU	France	Ordinary shares	100	9
Burberry (Deutschland) GmbH	German y	Ordinary shares	100	10
Burberry Asia Holdings Limited	Hong Kong S.A.R., China	Ordinary shares	100	11
Burberry China Holdings Limited	Hong Kong S.A.R., China	Ordinary shares	100	11
Burberry Asia Limited	Hong Kong S.A.R., China	Ordinary shares	100	12
Burberry Hungary Kereskedelmi Korlátolt	Hungar y	Ordinary shares	100	13
Felelősség ű Társaság
Burberry India Private Limited	India	Ordinary shares	51	14
Burberry Ireland Investments Unlimited Company	Ireland	Ordinary A shares	100	15
		Ordinary B shares	100
Burberry Ireland Limited	Ireland	Ordinary shares	100	16
Burberry Italy (Rome) S.R.L.	Ital y	Quota	100	17
Burberry Italy S.R.L.	Ital y	Quota	100	17
Burberry Tecnica S.R. L	Ital y	Quota	100	18
Burberry Manifattura S.R.L.	Ital y	Quota	100	19
Burberry Japan K.K.	Japan	Ordinary shares	100	20
Burberry Kuwait General Trading Textiles and Accessories	Kuwait	Parts	49	21
Company \ With Limited Liabilit y 3
Burberry Macau Limited	Macau S.A.R., China	Quota	100	22
Burberry (Malaysia) Sdn. Bhd.	Malaysia	Ordinary shares	100	23
Horseferr y México S.A. de C.V.	Mexico	Ordinary (fixed) shares	100	24
		Ordinary (variable) shares	100
Horseferry México Servicios Administrativos, S.A. de C.V.	Mexico	Ordinary (fixed) shares	100	24
Burberry Netherlands B.V.	Netherlands	Ordinary shares	100	25
Burberry New Zealand Limited	New Zealand	Ordinary shares	100	26
Burberry Qatar W.L.L	Qatar	Ordinary shares	49	27
Burberry Korea Limited	Republic of Korea	Common stock	100	28
Burberry Retail LLC 4	Russian Federation	Participatory share	100	29
Burberry Saudi Company Limited	Kingdom of Saudi Arabia	Ordinary shares	100	30
Burberry (Singapore) Distribution Company PTE Ltd	Singapore	Ordinary shares	100	31
Burberry (Spain) Retail S.L.	Spain	Ordinary shares	100	32
Burberry (Suisse) SA	Switzerland	Ordinary shares	100	33
Burberry (Taiwan) Co., Ltd	Taiwan Area, China	Common shares	100	34
Burberry (Thailand) Limited	Thailand	Common shares	100	35

206

Burberry Annual Report 2023/24

Financial Statements | Notes to the Financial Statements

31. Subsidiary undertakings and investments continued

	Country of		Holding	Registered
Company name	incorporation	Interest	(%)	office
Burberry Turkey Giyim Toptan Ve Perakende Satış	Turke y	Ordinary shares	100	36
Limited Şirketi
Burberry FZ-LLC	United Arab Emirates	Ordinary shares	100	37
Burberry Middle East LLC	United Arab Emirates	Ordinary shares	49	38
Burberry (Espana) Holdings Limited	United Kingdom	Ordinary shares	100	39
Burberry (No. 7) Unlimited	United Kingdom	Ordinary shares	100	39
Burberry (UK) Limited	United Kingdom	Ordinary shares	100	39
Burberry Europe Holdings Limited	United Kingdom	Ordinary shares	100	39
Burberry Finance Limited	United Kingdom	Ordinary shares	100	39
Burberry Haymarket Limited	United Kingdom	Ordinary shares	100	39
Burberry Holdings Limited	United Kingdom	Ordinary shares	100	39
Burberry International Holdings Limited	United Kingdom	Ordinary shares	100	39
Burberry Latin America Limited	United Kingdom	Ordinary shares	100	39
Burberry Limited	United Kingdom	Ordinary shares	100	39
Burberry London Limited	United Kingdom	Ordinary shares	100	39
Burberrys Limited 1	United Kingdom	Ordinary shares	100	39
Sweet Street Developments Limited	United Kingdom	Ordinary shares	100	39
The Scotch House Limited	United Kingdom	Ordinary shares	100	39
Thomas Burberry Holdings Limited	United Kingdom	Ordinary shares	100	39
Thomas Burberry Limited	United Kingdom	Ordinary shares	100	39
Woodrow-Universal Limited	United Kingdom	Ordinary shares	100	39
Woodrow-Universal Pension Trustee Limited	United Kingdom	Ordinary shares	100	39
Burberry (Wholesale) Limited	United States	Class X common stock	100	40
		Class Y common stock	100
Burberry Limited	United States	Class X common stock	100	40
		Class Y common stock	100
Burberry North America, Inc.	United States	Common stock	100	41

2, 5

1. The Group has an indirect holding of 100% of the issued share capital through a nominee.

2. Held directly by Burberry Group plc.

3. The Group has a 100% share of profits of Burberry Middle East LLC as well as a 100% and majority share of profits in Burberry Middle East LLC’s subsidiaries in Kuwait and

Qatar respectively. The Group has the power to control these companies under the agreements relating to Burberry Middle East LLC.

4. Burberry Retail LLC’s stores have been closed since March 2022.

5. This subsidiary will take the audit exemption allowed under Section 479A of the Companies Act 2006 for the year ended 30 March 2024.

207

Burberry Annual Report 2023/24

Financial Statements | Notes to the Financial Statements

31. Subsidiary undertakings and investments continued

Ref	Registered office address
1	Level 5, 343	George Street, Sydney NSW 2000, Australia
2	Kohlmarkt 2, A1010 Wien, Austria
3	Building 2758, Flat no. 1081, Road 4650, Block 346, Manama/Sea Front, Bahrain
4	Waterloolaan 16, 1000, Brussel, Belgium
5	City of São Paulo, State of São Paulo, at Rua do Rocio, 350, 3rd Pavement of Condominium Atrium IX, suites No. 32,
	28th subdistrict, Vila Olímpia, CEP 04552-000, Brazil
6	100	King Street West, 1 First Canadian Place, Suite 1600, Toronto ON M5X 1G5, Canada
7	60th Floor (Actual Floor No.53), Wheelock Square, No. 1717 Nanjing West Road, Jing’an Districts, Shanghai 200040,
	People’s Republic of China
8	Praha 1, Pařížská 11/67, PSČ 11000, Czech Republic
9	56A rue du Faubourg Saint-Honoré, 75008, Paris, France
10	Königsallee 50, 40212, Düsseldorf, German y
11	Flat /RM 2201-02 & 09-14, 22/F Devon House, Taikoo Place, 979 King’s Road, Quarry Bay, Hong Kong
12	RM 01-02 & 09-14, 22/F Devon House, Taikoo Place, 979 King’s Road, Quarry Bay, Hong Kong
13	H-1068	Budapest Dózsa György út 84. B, Hungar y
14	10th Floor, International Trade Tower, Nehru Place, New Delhi, South East Delhi, Dehli 110019
15	Suite 9, Bunkilla Plaza, Bracetown Business Park, Clonee, Co. Meath., D15 XR27, Ireland
16	Suite 9, Bunkilla Plaza, Bracetown Office Park, Clonee, Co. Meath., D15 XR27, Ireland
17	Via Manzoni n.20, CAP, 20121, Milano, Ital y
18	Via Italia 6/A, 10093 Collegno (TO), Ital y
19	Via delle Fonti n.10, 50018 Scandicci, Ital y
20	5-14 Ginza 2-chome, Chuo-ku, Tokyo, Japan
21	Hawally, Block 8, Street 276, Plot 9301, Unit No 12, Floor 7, Kuwait
22	Avenida Dr. Sun Yat Sen, One Central Building, 1st floor, Shops 125-127, Macau
23	43-2, Plaza Damansara, Jalan Medan Setia 1, Bukit Damansara, 50490 Kuala Lumpur, Wilayah Persekutuan, Malaysia
24	Edgar Allan Poe 85-B, Col. Polanco, Delg. Miguel Hidalgo, Mexico City, 11560, Mexico
25	Pieter Cornelisz. Hooftstraat 50 H, 1071CA Amsterdam
26	Level 20, HSBC Tower, 188 Quay Street, Auckland, 1010, New Zealand
27	First Floor, Building No. 660, Street no. 364, Al Waab, Zone No.54, Al Marikh, Al Rayyan Municipality, Qatar
28	459, Dosan-daero, Gangnam-gu, Seoul, Republic of Korea
29	Ulitsa Petrovka, 16, floor 3, Premise I, rooms 47-53, 127051, Moscow, Russian Federation
30	1st Floor, The Plaza Building, P.O. Bo x 2392, Riyadh 12244, Kingdom of Saudi Arabia
31	391B	Orchard Road, #15-02/03, Ngee Ann City, 238874, Singapore
32	Passeig de Gràcia, 56, 08007, Barcelona
33	Route de Chêne 30A, c/o L&S Trust Services SA, 1208 Genève, Switzerland
34	5F. No 451 Changchun Rd, Songshan Dist, Taipei City 10547, Taiwan
35	No.127	Office 25.03; Level 25; Gaysorn Tower; Ratchadamri Road, Lumpini Sub-District; Pathumwan District; 10330 Bangkok; Thailand
36	Reşitpaşa Mahallessi Eski Büyükdere Cad. Windowist Tower Sit. No: 26/1 Sariyer/Istanbul, Turke y
37	Dubai Design District, Premises:, 312, 313, 314 & 315, Floor: 03, Building: 08, Dubai Design District, United Arab Emirates
38	Dubai Design District, Building 8, Level 3, Unit no 314 and 315 PO Box 83916, Dubai
39	Horseferry House, Horseferry Road, London, SW1P 2AW, United Kingdom
40	Corporation Service Company, 80 State Street, Albany, NY, 12207-2543, USA
41	Corporation Service Company, 251 Little Falls Drive, Wilmington, DE 19808, USA

32. Contingent liabilities

The Group is subject to claims against it and to tax audits in a number of jurisdictions which arise in the ordinary course of business.

These typically relate to Value Added Taxes, sales taxes, customs duties, corporate taxes, transfer pricing, payroll taxes, various

contractual claims, legal proceedings and other matters. Where appropriate, the estimated cost of known obligations has been

provided in these financial statements in accordance with the Group’s accounting policies. The Group does not expect the outcome

of current similar contingent liabilities to have a material effect on the Group’s financial position.

208

Burberry Annual Report 2023/24

Financial Statements | Five-Year Summary (UNAUDITED)

FIVE-YEAR SUMMARY (UNAUDITED)

To end of year

Revenue by channel

2020

£m

2021

£m

2022

£m

2023

£m

2024

£m

Retail 2,110 1,910 2,273 2,501 2,400

Wholesale 476 396 512 543 506

Retail/Wholesale 2,586 2,306 2,785 3,044

2,906

Licensing 47 38 41 50 62

Total revenue 2,633 2,344 2,826 3,094

2,968

Profit by channel

£m £m £m £m

£m

Retail/Wholesale

390 361 486 587 359

Licensing 43 35 37 47 59

Adjusted operating profit

433 396 523 634 418

Segmental analysis of adjusted profit

% % % % %

Retail/Wholesale gross margin 66.8 69.5 70.2 70.0 67.0

Retail/Wholesale operating expenses as a percentage of sales 51.7 53.8 52.7 50.7 54.6

Retail/Wholesale operating margin 15.1 15.7 17.5 19.3

12.4

Licensing operating margin 91.9 90.8 90.2 91.9

94.0

Adjusted operating profit margin 16.4 16.9 18.5 20.5

14.1

Summary profit analysis

£m £m £m £m

£m

Adjusted operating profit

433 396 523 634 418

Net finance income/(expense)

(19) (30) (31) (21) (35)

Adjusted profit before taxation

414 366 492 613 383

Adjusting items (245) 124 19 21 –

Profit before taxation 169 490 511 634

383

Taxation (47) (114) (114) (142) (112)

Non-controlling interest – – (1) (2)

(1)

Attributable profit 122 376 396 490

270

Retail/Wholesale revenue by product division

£m £m £m £m

£m

Accessories 948 841 1,017 1,125 1,055

Women’s 796 653 784 867 860

Men’s 715 668 807 868

842

Children’s/Other 127 144 177 184

149

Retail/Wholesale revenue by destination

£m £m £m £m

£m

Asia Pacific 1,040 1,203 1,276 1,297 1,286

EMEIA

961 628 813 1,004 1,017

Americas 585 475 696 743

603

Financial KPIs

% % % % %

Total revenue growth

-4 -10 +23 +5 –

Comparable store sales growth

-3 -9 +18 +7 -1

Adjusted operating profit growth

1, 3

-1 -8 +38 +8 -25

Adjusted operating profit margin

16.4 16.9 18.5 20.5 14.1

Adjusted diluted EPS growth

-4 -14 +40 +30 -40

Adjusted Group return on invested capital (ROIC)

20.0 17.0 24.6 28.6 15.3

1. Excludes the impact of adjusting items. Refer to note 2r for the Group’s policy on adjusting items.

2. EMEIA comprises Europe, Middle East, India and Africa.

3. Growth rate is year-on-year underlying change, i.e. at constant exchange rates.

209

Burberry Annual Report 2023/24

Financial Statements | Five-Year Summary (UNAUDITED)

To end of year

Earnings and dividends

2020

pence

per share

2021

pence

per share

2022

pence

per share

2023

pence

per share

2024

pence

per share

Adjusted earnings per share – diluted

78.7 67.3 94.0 122.5

73.9

Earnings per share – diluted 29.8 92.7 97.7 126.3

73.9

Diluted weighted average number of

ordinary shares (millions) 409.0 405.1 404.8 388.0

366.2

Dividend per share

Interim 11.3 – 11.6 16.5 18.3

Final

–

42.5 35.4 44.5

42.7

To end of year

Net cash flow

2020

£m

2021

£m

2022

£m

2023

£m

2024

£m

Adjusted profit before ta

ation 414 366 492 613 383

Adjusting items (245) 124 19 21 –

Profit before ta

ation 169 490 511 634 383

Depreciation and amortisation 331 277 313 344 379

Employee share scheme costs 3 12 16 19

Net finance expense 20 31 32 23

Decrease/(increase) in inventories 27 21 (22) (10)

(57)

Decrease

(increase) in receivables (10) (39) (5) (17) (32)

Increase/(decrease) in payables and provisions (84) (7) 81 (49)

(77)

Other cash items – (1) – –

–

Other non-cash items 169 (107) (17) (32)

Cash flow from operations 625 677 909 912

665

Net interest (19) (27) (30) (22) (20)

Tax paid (150) (58) (180) (140)

(139)

Net cash flow from operations 456 592 699 750

506

Capital expenditure (149) (115) (161) (179) (208)

Proceeds from disposal of non-current assets 3 27 8 32

–

Payment of lease principal and related cash flows (244) (155) (206) (210)

(235)

Free cash flow 66 349 340 393

Acquisitions (3) (4) (10) (6)

(

19)

Dividends (175) – (219) (203)

(233)

Purchase of shares through share buyback (151) – (153) (404)

(402)

Proceeds from borrowings 300 595 – –

–

Repayment of borrowings – (600) – –

–

Other 4 2 (4) 2

Exchange difference 9 (13) 7 2

(9)

Total movement in net cash 50 329 (39) (216)

(599)

Net cash 887 1,216 1,177 961 362

1. Excludes the impact of adjusting items. Refer to note 2r for the Group’s policy on adjusting items.

210

Burberry Annual Report 2023/24

Financial Statements | Five-Year Summary (UNAUDITED)

At end of year

Balance Sheet

2020

£m

2021

£m

2022

£m

2023

£m

2024

£m

Intangible assets 247 237 240 248 267

Property, plant and equipment 295 280 322 376 406

Right-of-use assets 834 818 880 950

1,013

Inventories 451 402 426 447

507

Trade and other receivables 306 322 328 359

392

Trade and other payables (550) (492) (572) (553)

(502)

Lease liabilities (1,126) (1,020) (1,058) (1,123)

(1,188)

Taxation (including deferred taxation) 214 148 221 229

243

Net cash 887 1,216 1,177 961

362

Borrowings (300) (297) (298) (298)

(299)

Other net assets (39) (54) (49) (57)

(47)

Net assets 1,219 1,560 1,617 1,539

1,154

Reconciliation of Adjusted

Group ROIC

2020

£m

2021

£m

2022

£m

2023

£m

2024

£m

Adjusted operating profit

433 396 523 634 418

Adjusted profit effective tax rate

22.3% 25.4% 22.2% 22.2% 29.2%

Adjusted net operating profit after ta

336 295 407 493 296

Net assets 1,219 1,560 1,617 1,539 1,154

Deduct cash net of overdrafts (887) (1,216) (1,177) (961)

(362)

Add back borrowings 300 297 298 298

299

Add back lease debt 1,126 1,020 1,058 1,123

1,188

Deduct net tax assets (214) (148) (221) (229)

(243)

Operating assets 1,544 1,513 1,575 1,770

2,036

Add back net liabilities related to adjusting items:

Deferred consideration 18 17 8 5 5

Restructuring liabilities/other 253 127 63 30

Adjusted operating assets 1,815 1,657 1,646 1,805

2,064

Average adjusted operating assets 1,686 1,736 1,651 1,726 1,935

Adjusted Group ROIC 20.0% 17.0% 24.6% 28.6%

15.3%

1. Excludes the impact of adjusting items. Refer to note 2r for the Group’s policy on adjusting items.

211

Burberry Annual Report 2023/24

Financial Statements | Company Balance Sheet

COMPANY BALANCE SHEET

Note

As at

30 March

2024

£m

As at

1 April

2023

£m

Fixed assets

Investments in subsidiaries D 1,572 1,553

1,572 1,553

Current assets

Trade and other receivables – amounts falling due after more than one year E 655 301

Trade and other receivables – amounts falling due within one year E

– 288

Derivative assets maturing within one year

– 3

Cash at bank and in hand

1 –

656 592

Creditors – amounts falling due within one year F (102) (67)

Derivative liabilities maturing within one year

(1) –

Net current assets

553 525

Total assets less current liabilities 2,125 2,078

Creditors – amounts falling due after more than one year F (61) (129)

Borrowings G (299) (298)

Net assets

1,765 1,651

Equity

Called up share capital I

– –

Share premium account

231 230

Capital reserve

1 1

Profit and loss account

1,533 1,420

Total equity

1,765 1,651

Profit for the year was £732 million (last year: £572 million). The Directors consider that, at 30 March 2024, £732 million (last year:

£718 million) of the profit and loss account is non-distributable.

The financial statements on pages 212 to 220 were approved and authorised for issue by the Board on 14 May 2024 and signed on its

behalf by:

Jonathan Akeroyd

Chief Executive Officer

212

Burberry Annual Report 2023/24

Financial Statements | Company Statement of Changes in Equity

COMPANY STATEMENT OF CHANGES IN EQUITY

Note

Called up share

capital

£m

Share premium

account

£m

Capital reserve

£m

Profit and loss

account

£m

Total

equity

£m

Balance as at 2 April 2022 – 227 1 1,437 1,665

Profit for the year – – – 572 572

Total comprehensive income for the year – – – 572 572

Employee share incentive schemes

Equity share awards – – – 19 19

Exercise of share options – 3 – – 3

Purchase of own shares

Share buyback – – – (404) (404)

Held by ESOP trusts – – – (1) (1)

Dividends paid in the year – – – (203) (203)

Balance as at 1 April 2023 – 230 1 1,420 1,651

Profit for the year – – – 732 732

Total comprehensive income for the year – – – 732 732

Employee share incentive schemes

Equity share awards – – – 16 16

Exercise of share options – 1 – – 1

Purchase of own shares

Share buyback I – – – (402) (402)

Dividends paid in the year J – – – (233) (233)

Balance as at 30 March 2024 – 231 1 1,533 1,765

213

Burberry Annual Report 2023/24

Financial Statements | Notes to the Company Financial Statements

A. Basis of preparation

Burberry Group plc (the Company) is the parent Company of the Burberry Group. Burberry Group plc is a public company which

is limited by shares and is listed on the London Stock Exchange. The Company’s principal business is investment and it is

incorporated and domiciled in the UK. The Company is registered in England and Wales and the address of its registered office is

Horseferry House, Horseferry Road, London, SW1P 2AW. The Company is the sponsoring entity of The Burberry Group plc ESOP Trust

and The Burberry Group plc SIP Trust (collectively known as the ESOP trusts). These financial statements have been prepared by

including the ESOP trusts within the financial statements of the Company. The purpose of the ESOP trusts is to purchase shares of

the Company in order to satisfy Group share-based payment arrangements.

Burberry Group plc and its subsidiaries (the Group) is a global luxury goods manufacturer, retailer and wholesaler. The Group also

licenses third parties to manufacture and distribute products using the ‘Burberry’ trademarks. All of the companies which comprise

the Group are controlled by the Company directly or indirectly. The consolidated financial statements of the Group have been

prepared in accordance with the requirements of the Companies Act 2006 and UK-adopted International Accounting Standards.

These consolidated financial statements have been prepared for public use and can be obtained at Horseferry House, Horseferry

Road, London, SW1P 2AW.

The financial statements of the Company have been prepared in accordance with Financial Reporting Standard 101 ‘Reduced

Disclosure Framework’ (FRS 101). The financial statements have been prepared on a going concern basis under the historical cost

convention, as modified by derivative financial assets and derivative financial liabilities measured at fair value through profit or loss,

and in accordance with the Companies Act 2006. As permitted by Section 408 of the Companies Act 2006, the Company has not

presented its own Income Statement.

The preparation of the financial statements in conformity with FRS 101 requires the use of certain critical accounting estimates. It also

requires management to exercise judgement in applying the Company’s accounting policies (refer to note C).

Financial Reporting Standard 101 – reduced disclosure exemptions

The Company has taken advantage of the applicable disclosure exemptions permitted by FRS 101 in the financial statements, which

are summarised below:

Standard Disclosure exemption

IFRS 2, ‘Share-based Payments’

• Para 45(b) – disclosure of number and weighted average exercise price of

share options

• Para 46–49 – disclosure of valuation techniques and inputs used for fair value

measurement of options

• Para 50–52 – disclosure of the effect of share-based payment transactions on the

entity’s profit and loss for the period.

IFRS 7, ‘Financial Instruments: Disclosures’ • Full exemption

IFRS 13, ‘Fair Value Measurement’

• para 91-99 – disclosure of valuation techniques and inputs used for fair value

measurement of assets and liabilities

IAS 1, ‘Presentation of the Financial Statements’ • para 10(d) – statement of cash flows

• para 10(f) – a statement of financial position as at the beginning of the preceding

period when an entity applies an accounting policy retrospectively or makes a

retrospective statement of items in its financial statements, or when it reclassifies

items in its financial statements

• para 16 – statement of compliance with all IFRS

• para 38 – present comparative information in respect of paragraph 79(a)(iv) of IAS 1

• para 38A – requirement for minimum of two primary statements, including

cash flow statements

• para 38B-D – additional comparative information

• para 111 – cash flow statement information

• para 134-136 – capital management disclosures

IAS 7, ‘Statement of Cash Flows’ • Full exemption

IAS 8, ‘Accounting Policies, Changes

in Accounting Estimates and Errors’

• para 30-31 – requirement for the disclosure of information when an entity has not

applied a new IFRS that has been issued but is not yet effective

IAS 24, ‘Related Party Disclosures’ • para 17 – key management compensation

• The requirements to disclose related party transactions entered into between two

or more members of a group, provided that any subsidiary which is a party to the

transaction is wholly owned by such a member

IAS 36, ‘Impairment of Assets’ • para 134(d)-134(f) and 135(c)-135(e)

214

Burberry Annual Report 2023/24

Financial Statements | Notes to the Company Financial Statements

A. Basis of preparation continued

Going concern

The Company financial statements are prepared on a going concern basis as set out in note 1 of the Group consolidated financial

statements of Burberry Group plc.

New standards, amendments and interpretations adopted in the period

A number of new amendments to standards are effective for the financial period commencing 2 April 2023 but they do not have a

material impact on the financial statements of the Company.

Standards not yet adopted

Certain new accounting standards and amendments to standards have been published that are not mandatory for the 52 weeks to

30 March 2024 and have not been early adopted by the Company as set out in note 1 of the Group consolidated financial statements

of Burberry Group plc.

B. Accounting policies

The following material accounting policies have been applied in the preparation of these financial statements. These policies have

been consistently applied to all the years presented, unless otherwise stated:

Share schemes

The Group operates a number of equity-settled share-based compensation schemes under which services are received from

employees (including Executive Directors) as consideration for equity instruments of the Company. Instruments used include awards

and options. The cost of the share-based incentives is measured with reference to the fair value of the equity instruments awarded at

the date of grant. Appropriate option pricing models, including Black-Scholes, are used to determine the fair value of the option

awards made.

The fair value takes into account the impact of any market performance conditions, but the impact of non-market performance

conditions is not considered in determining the fair value on the date of grant. Vesting conditions which relate to non-market

conditions are allowed for in the assumptions used for the number of share awards or options expected to vest. The estimate of the

number of options expected to vest is revised at each balance sheet date.

In some circumstances, employees may provide services in advance of the grant date. The grant date fair value is estimated for the

purpose of recognising the expense during the period between the service commencement period and the grant date.

The grant by the Company of share awards or options over its equity instruments to employees of subsidiary undertakings in the

Group is treated as a capital contribution. In the Company’s financial statements, the cost of the share-based incentives is

recognised over the vesting period of the awards as an increase in investment in subsidiary undertakings, with a corresponding

increase in equity. Where amounts are received from Group companies in relation to equity instruments granted to the employees of

the subsidiary undertaking, the amount is derecognised from investments in Group companies.

When share awards or options are exercised, they are settled either via issue of new shares in the Company, or through shares held

in the ESOP trusts, depending on the terms and conditions of the relevant scheme. For new shares issued, the proceeds received

from the exercise of share options, net of any directly attributable transaction costs, are credited to share capital and share premium

accounts. When ESOP shares are used, any difference between the exercise price and their cost is recognised in retained earnings.

Dividend distribution

Dividend distributions to Burberry Group plc’s shareholders are recognised as a liability in the year in which the dividend becomes a

committed obligation. Final dividends are recognised when they are approved by the shareholders. Interim dividends are recognised

when paid.

Investments in subsidiaries

Investments in subsidiaries are stated at cost, less any provisions to reflect impairment in value.

Impairment of investments in subsidiaries

Investments in subsidiaries are not subject to amortisation and are tested annually for impairment. An impairment loss is recognised

for the amount by which the carrying value exceeds its recoverable amount. The recoverable amount is the higher of an asset’s fair

value less costs to sell and value-in-use. For the purpose of assessing impairment, assets are grouped at the lowest level for which

there are separately identifiable cash flows (cash generating units). Investments for which an impairment has been previously

recognised are reviewed for possible reversal of impairment at each reporting date.

215

Burberry Annual Report 2023/24

Financial Statements | Notes to the Company Financial Statements

B. Accounting policies continued

Taxation

Tax expense represents the sum of the current tax expense and the deferred tax charge.

Current tax is based on taxable profit for the year. Taxable profit differs from net profit because it excludes items of income

or expense which are taxable or deductible in other years and it further excludes items which are never taxable or deductible.

The current tax liability is calculated using tax rates which have been enacted or substantively enacted by the balance sheet date.

Deferred tax is recognised, using the liabilities method, on temporary differences arising between the tax bases of assets

and liabilities and their carrying amounts in the financial statements. However, if the temporary difference arises from the initial

recognition of an asset or liability in a transaction other than a business combination that at the time of the transaction affects neither

accounting nor taxable profit or loss, and does not give rise to equal taxable and deductible temporary differences, no deferred tax

will be recognised. Deferred tax is determined using tax rates (and laws) that have been enacted or substantively enacted by the

balance sheet date and are expected to apply when the related deferred income tax asset is realised or the deferred tax liability

is settled.

Deferred tax assets are recognised to the extent that it is probable that future taxable profits will be available against which the

temporary differences can be utilised.

Financial instruments

A financial instrument is initially recognised at fair value on the Balance Sheet when the Company becomes a party to the contractual

provisions of the instrument. A financial asset is derecognised when the contractual rights to the cash flow expire or substantially all

risks and rewards of the asset are transferred. A financial liability is derecognised when the obligation specified in the contract is

discharged, cancelled or expires.

At initial recognition, all financial liabilities are stated at fair value. Subsequent to initial recognition, all financial liabilities are stated

at amortised cost using the effective interest rate method, except for derivatives which are held at fair value and which are classified

as fair value through profit and loss. Financial assets are classified as either amortised cost or fair value through profit and loss

depending on their cash flow characteristics. Assets with cash flows that represent solely payments of principal and interest are

measured at amortised cost. The fair value of the financial assets and liabilities held at amortised cost approximate their carrying

amount due to the use of market interest rates.

The Company classifies its instruments in the following categories:

Financial instrument category Note Classification Measurement

Cash and cash equivalents Amortised cost Amortised cost

Trade and other receivables E Amortised cost Amortised cost

Trade and other payables F Other financial liabilities Amortised cost

Borrowings G Other financial liabilities Amortised cost

Equity swap contracts Fair value through profit and loss Fair value through profit and loss

The Company’s primary categories of financial instruments are listed below:

Cash at bank and in hand

On the Balance Sheet, cash at bank and in hand comprises cash held with banks. Cash at bank and in hand held at amortised cost is

subject to impairment testing each period end.

Trade and other receivables

Trade and other receivables are included in current assets. Trade and other receivables with maturities greater than 12 months after

the balance sheet date are classified in trade and other receivables amounts falling due after more than one year. The assessment of

maturities of loan receivables takes into consideration any intention to renew the loan, where the loan is provided under a facility

which has a maturity of more than 12 months from the balance sheet date. Most receivables are held with the objective to collect the

contractual cash flows and are therefore recognised initially at fair value and subsequently measured at amortised cost using the

effective interest rate method, less provision for impairment. A provision for the expected loss on receivables is established at

inception. This is modified when there is a change in the credit risk. The amount of the movement in the provision is recognised in the

Income Statement.

Trade and other payables

Trade and other payables are included in current liabilities, except for maturities greater than 12 months after the balance sheet date.

Payables are recognised initially at fair value and subsequently measured at amortised cost using the effective interest rate method.

216

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Financial Statements | Notes to the Company Financial Statements

B. Accounting policies continued

Financial instruments continued

Borrowings

Borrowings are recognised initially at fair value, inclusive of transaction costs incurred. Borrowings are subsequently stated at

amortised cost and the difference between the proceeds (net of transaction costs) and the redemption value is recognised in the

Income Statement over the period of the borrowings using the effective interest rate method. Borrowings are classified in creditors

amounts falling due within one year unless the Company has an unconditional right to defer settlement of the liability for at least

12 months after the balance sheet date.

Derivative instruments

The Company uses equity swap contracts to economically hedge its exposure to fluctuations in the Company’s share price

which impacts the social security costs payable by Group companies in relation to share-based compensation schemes.

The equity swap contracts are initially recognised at fair value at the trade date and classified as fair value through profit and loss.

All subsequent changes in fair value are recognised in the Income Statement up to the maturity date.

Cash settled equity swaps are classified as fair value through profit and loss.

Foreign currency translation

Functional and presentation currency

Items included in the financial statements are measured using the currency of the primary economic environment in which the

Company operates (the functional currency). The financial statements are presented in sterling which is the Company’s functional

and presentation currency.

Transactions in foreign currencies

Transactions denominated in foreign currencies are translated into the functional currency at the exchange rate prevailing at the date

of the transaction. Monetary assets and liabilities denominated in foreign currencies, which are held at the year end, are translated

into the functional currency at the exchange rate ruling at the balance sheet date (closing rate). Exchange differences on monetary

items are recognised in the Income Statement in the period in which they arise.

Called up share capital

Called up share capital is classified as equity. Incremental costs directly attributable to the issue of new shares or options are shown

in equity as a deduction, net of tax, from the proceeds.

Where the Company purchases its own equity share capital (treasury shares), the consideration paid, including any directly

attributable incremental costs, is deducted from equity attributable to owners of the Company until the shares are cancelled,

reissued or disposed of. Where such shares are subsequently sold or reissued, any consideration received, net of any directly

attributable incremental transaction costs and the related income tax effects, is included in equity attributable to owners of

the Company.

C. Key sources of estimation uncertainty and judgements

Key sources of estimation uncertainty

Preparation of the financial statements in conformity with FRS 101 requires that management make certain estimates and

assumptions that affect the reported revenues, expenses, assets and liabilities and the disclosure of contingent liabilities. If in the

future such estimates and assumptions, which are based on management’s best estimates at the date of the financial statements,

deviate from actual circumstances, the original estimates and assumptions will be updated as appropriate in the period in which the

circumstances change.

Estimates are continually evaluated and are based on historical experience and other factors, including expectations of future events

that are believed to be reasonable under the circumstances. There were no key sources of estimation uncertainty for the 52 weeks to

30 March 2024 and 1 April 2023.

Key judgements in applying the Company’s accounting policies

Judgements are those decisions made when applying accounting policies which have a significant impact on the amounts

recognised in the Company’s financial statements. Further details of the Company’s accounting policies are provided in note B.

There were no key judgements arising in the current year or prior year that have a significant impact on the amounts recognised in

the Company’s financial statements for the 52 weeks to 30 March 2024 and 1 April 2023.

217

Burberry Annual Report 2023/24

Financial Statements | Notes to the Company Financial Statements

D. Investments in subsidiaries

£m

As at 1 April 2023 1,553

Additions 22

Impairment charges (3)

As at 30 March 2024 1,572

The Company has reviewed the recoverable value of its investments to identify if there is any indication of impairment of the carrying

value. Where applicable, the value in use has been estimated using management’s best estimates of future cash generation of

its investments.

The Company has not impaired the carrying value of its investments, apart from a £3 million impairment charge in relation to

Burberrys Limited, as their cash generation in the long-term is considered sufficient to support the carrying value. The subsidiary

undertakings and investments of the Burberry Group are listed in note 31 of the Group financial statements.

E. Trade and other receivables

As at

30 March

2024

£m

As at

1 April

2023

£m

Amounts owed by Group companies 654 300

Prepayments 1 1

Trade and other receivables – amounts falling due after more than one year

655 301

Amounts owed by Group companies – 288

Trade and other receivables – amounts falling due within one year

– 288

Total trade and other receivables 655 589

All amounts owed by Group companies are interest bearing and unsecured.

Included within amounts owed by Group companies falling due after more than one year are interest bearing loans receivable of

£300 million with a facility maturity date of 21 September 2025, and £354 million with a facility maturity date of 22 February 2029.

The interest rates applied to these loans are 1.125% and SONIA +0.9%, respectively.

The Company’s impairment policies and the calculation of the loss allowances under IFRS 9 are detailed in note H.

F. Creditors

As at

30 March

2024

£m

As at

1 April

2023

£m

Amounts owed to Group companies 61 129

Creditors – amounts falling due after more than one year 61 129

As at

30 March

2024

£m

As at

1 April

2023

£m

Amounts owed to Group companies 102 66

Other payables – 1

Creditors – amounts falling due within one year

102 67

Total creditors 163 196

Amounts owed to Group companies falling due after more than one year include interest bearing loans of £61 million (last year:

£129 million). The interest rate earned is set annually and was based on EURIBOR. The loan is unsecured and repayable on

17 June 2025.

Amounts owed to Group companies falling due within one year include interest bearing loans of £73 million repayable on 17 June

2024 (last year: £nil). The interest rate earned is set annually and was based on SONIA plus adjustment spread of +0.9% at the most

recent update. The remaining amounts of £29 million are unsecured, interest free and repayable on demand (last year: £66 million).

218

Burberry Annual Report 2023/24

Financial Statements | Notes to the Company Financial Statements

G. Borrowings

On 21 September 2020, Burberry Group plc issued medium term notes with a face value of £300 million and 1.125% coupon maturing

on 21 September 2025 (the sustainability bond). Proceeds from the sustainability bond have been used by the Group to finance

projects which support the Group’s sustainability agenda. There are no financial penalties for not using the proceeds as anticipated.

Interest on the sustainability bond is payable semi-annually. The carrying value of the bond at 30 March 2024 is £299 million

(last year: £298 million); all movements on the bond are non-cash. The fair value of the bond at 30 March 2024 is £281 million

(last year: £273 million).

H. Credit risk

The Company’s principal financial instruments comprise cash, borrowings, trade and other receivables and trade and other payables

arising directly from operations.

Trade and other receivables

The trade and other receivables balance comprises intercompany loans with companies within the Group. These Group companies

are assessed at each reporting date as to their ability to repay outstanding balances. The amounts owed by Group companies at

30 March 2024 comprise £654 million owed by Burberry Limited, and £nil owed by other Group companies (last year: £587 million

owed by Burberry Limited, and £1 million owed by other Group companies).

The counterparty credit risk of trade and other receivables is reviewed on a regular basis and assessed for impairment as follows:

At inception the receivable is recorded net of expected 12-month credit losses. If a significant increase in the credit risk occurs

during the life, credit losses are recorded in the profit and loss account and the effective interest is calculated using the gross

carrying amount of the asset. If a loss event occurs, the effective interest is calculated using the amortised cost of the asset net of

any credit losses.

The Company’s most significant debtor, Burberry Limited, is the holder of the Burberry brand and the main operating company of the

Group. Based on its liquidity and expected cash generation, the expected 12 months credit loss for Burberry Limited trade and other

receivables is not considered to be significant. As a result, no impairment has been recorded for amounts owed by Group companies

as at 30 March 2024.

Other financial assets

With respect to credit risk arising from other financial assets, which comprise cash and certain other receivables, the Company’s

exposure to credit risk arises from the default of the counterparty with a maximum exposure equal to the carrying value of these

instruments. The Company has policies that limit the amount of credit exposure to any financial institution and only deposits funds

with independently rated financial institutions with a minimum rating of ‘A’, other than where required for operational purposes.

I. Called up share capital

Allotted, called up and fully paid share capital Number £m

Ordinary shares of 0.05p (last year: 0.05p) each

As at 1 April 2023 384,267,928 0.2

Allotted on exercise of options during the year 51,904 –

Cancellation of shares (20,504,089) –

As at 30 March 2024 363,815,743 0.2

The Company has a general authority from shareholders, renewed at each Annual General Meeting, to repurchase a maximum of 10%

of its issued share capital. During the 52 weeks to 30 March 2024, the Company entered into agreements to purchase, at fair value, a

total of £400 million of its own shares, excluding stamp duty and fees, through two share buyback programmes of £200 million each

(last year: two share buyback programmes of £200 million each). Both programmes were completed during the year.

The cost of own shares purchased by the Company, as part of a share buyback programme, is offset against the profit and loss

account, as the amounts paid reduce the profits available for distribution by the Company. When shares are cancelled, a transfer

is made from the profit and loss account to the capital reserve, equivalent to the nominal value of the shares purchased and

subsequently cancelled. In the 52 weeks to 30 March 2024, 20.5 million shares were cancelled (last year: 21.1 million shares).

As at 30 March 2024, the Company held 5.2 million treasury shares (last year: 6.1 million), with a market value of £63 million (last

year: £157 million) based on the share price at the reporting date. The treasury shares held by the Company are related to the share

buyback programme completed during the 53 weeks to 2 April 2022. During the 52 weeks to 30 March 2024, 0.9 million treasury

shares were transferred to ESOP trusts (last year: 2.3 million). During the 52 weeks to 30 March 2024, no treasury shares were

cancelled (last year: none).

219

Burberry Annual Report 2023/24

Financial Statements | Notes to the Company Financial Statements

I. Called up share capital continued

The cost of shares purchased by ESOP trusts are offset against the profit and loss account, as the amounts paid reduce the profits

available for distribution by the Company. As at 30 March 2024, the cost of own shares held by ESOP trusts and offset against the

profit and loss account is £34 million (last year: £42 million). As at 30 March 2024, the ESOP trusts held 1.9 million shares (last year:

2.3 million) in the Company, with a market value of £23 million (last year: £60 million). In the 52 weeks to 30 March 2024 the ESOP

trusts and the Company have waived their entitlement to dividends.

J. Dividends

52 weeks to

30 March

2024

£m

52 weeks to

1 April

2023

£m

Prior year final dividend paid 44.5p per share (last year: 35.4p) 167 140

Interim dividend paid 18.3p per share (last year: 16.5p) 66 63

Total

233 203

A final dividend in respect of the 52 weeks to 30 March 2024 of 42.7p (last year: 44.5p) per share, amounting to £151 million, has

been proposed for approval by the shareholders at the Annual General Meeting subsequent to the balance sheet date. The final

dividend has not been recognised as a liability at the year end and will be paid on 2 August 2024 to the shareholders on the register

at the close of business on 28 June 2024. The ex-dividend date is 27 June 2024 and the final day for dividend reinvestment plan

(DRIP) elections is 12 July 2024.

K. Financial guarantees

On 26 July 2021, the Group entered into a £300 million multi-currency sustainability-linked revolving credit facility (RCF) with a

syndicate of banks, maturing on 26 July 2026. There were no drawdowns or repayments of the RCF during the current or previous

year and, at 30 March 2024, there were no outstanding drawings.

The Group is in compliance with the financial and other covenants within the facility and has been in compliance throughout the

financial period.

The companies acting as guarantor to the facility consist of Burberry Group plc, Burberry Limited, Burberry Asia Limited, Burberry

(Wholesale) Limited (US) and Burberry Limited (US). Based on the liquidity and expected cash generation of Burberry Limited, the

expected credit loss in respect of these financial guarantees, as at 30 March 2024, is not considered to be significant. As a result,

no liability has been recorded (last year: £nil).

A potential liability may arise in the future if one of the Group members defaults on these loan facilities. Each guarantor,

including Burberry Group plc, would be liable to cover the amounts outstanding, including principal and interest elements.

L. Audit fees

The Company has incurred audit fees of £0.1 million for the current year which are borne by Burberry Limited (last year: £0.1 million).

M. Employee costs

The Company has no employees and therefore no employee costs are included in these financial statements for the 52 weeks to

30 March 2024 (last year: £nil).

220

Burberry Annual Report 2023/24

SHAREHOLDER INFORMATION

General shareholder enquiries

Enquiries relating to shareholdings, such as thetransfer

ofShares, change of name or address, lost Share certificates

ordividend cheques, should be referred to the Company’s

registrar at:

Equiniti

Aspect House

Spencer Road, Lancing, West Sussex, BN99 6DA

Website: www.shareview.co.uk

American Depositary Receipts

We have a sponsored Level 1 American Depositary Receipt

(ADR) programme to enable US investors to purchase ADRs

inUS Dollars. Each ADR represents one Share.

For queries relating to ADRs in Burberry, please use the

following contact details:

BNY Mellon Shareowner Services

P.O. BOX 43006 Providence, RI 02940-3078, USA

Tel: toll free within the USA: +1 888 269 2377

Tel: international: +1 201 680 6825

Email enquiries: shrrelations@cpushareownerservices.com

Website: www.mybnymdr.com

Managing your shares online

Shareholders and employees can manage their Burberry

holdings online by registering with Shareview, a secure online

platform provided by Equiniti. Registration is a straightforward

process and allows shareholders to:

• access information on their shareholdings, including Share

balance and dividend information

• sign up for electronic shareholder communications

• buy and sell Shares

• update their records following a change of address

• have dividends paid into their bank account

• vote by proxy online in advance of general meetings

oftheCompany

Burberry encourages shareholders to sign up for electronic

communication as it allows information to be disseminated

quickly and efficiently and also reduces paper usage, which

makes a valuable contribution to our global footprint.

Website

The investor section of Burberry Group plc’s website,

Burberryplc.com, contains a wide range of information including:

• regulatory news

• Share price information

• dividend history, Share analysis and an investment calculator

• financial results announcements

• frequently asked questions

• financial calendar

It is also possible to sign up to receive email alerts for RNS

news and press releases relating to Burberry Group plc at

www.burberryplc.com/en/alerts.html.

Duplicate accounts

Shareholders who have more than one account due to

inconsistency in account details may avoid duplicate mailings

by contacting Equiniti and requesting the amalgamation of their

Burberry Share accounts.

Burberry Share dealing

Burberry Shares can be traded through most banks, building

societies or stockbrokers. Equiniti offers a telephone and

internet dealing service. Terms and conditions and details

ofthecommission charges are available on request.

For telephone dealing, please telephone 0345 603 7037

between 8.00am and 4.30pm, Monday to Friday, and for

internet dealing visit www.shareview.co.uk/dealing.

Shareholders will need their reference number, which can be

found on their Burberry Share certificate.

Annual General Meeting (AGM)

Our AGM will be held at 10:30am on Tuesday 16 July 2024 at

Conrad London St. James, 22-28 Broadway, London SW1H 0BH.

The Notice of Meeting, which includes details of the business

tobe conducted at the meeting, is available on our Company

website, Burberryplc.com.

The voting results for the 2024 AGM will also be accessible

onBurberryplc.com shortly after the meeting.

Our privacy policy

Please see the privacy policy on https://www.burberryplc.com/

en/investors/shareholder-centre/shareholder-privacy-notice.

html for details on how Burberry collects and uses shareholder

personal information.

Shareholder Information

221

Burberry Annual Report 2023/24

Dividends

An interim dividend for FY 2023/24 of 18.3p per Share was paid

on 26 January 2024. A final dividend of 42.7p per Share has

been proposed and, subject to approval at the AGM on 16 July

2024, will be paid according to the following timetable:

Ex-dividend date: 27 June 2024

Final dividend record date: 28 June 2024

Deadline for return of Dividend

Reinvestment Plan (DRIP) mandate forms: 12 July 2024

Final dividend payment date: 2 August 2024

The ADR local payment date will be approximately five

businessdays after the proposed dividend payment date for

ordinary shareholders.

Dividends can be paid by BACS directly into a UK bank account,

with the dividend confirmation being sent to the shareholder’s

address. This is the easiest way for shareholders to receive

dividend payments and avoids the risk of lost or out-of-date

cheques. A dividend mandate form is available from Equiniti

oronline at www.shareview.co.uk/info/directdividends. If you

are a UK taxpayer, please note that you are eligible for atax-

free dividend allowance in each tax year (£500 in the taxyear

from 6 April 2024 to 5 April 2025). See: https://www.gov.uk/

government/publications/reduction-of-the-dividend-allowance/

income-tax-reducing-the-dividend-allowance

Any dividends received above this amount will be subject

totaxation. Dividends paid on Burberry Shares held within

pensions and Individual Savings Accounts (ISAs) will

continuetobe tax-free. Further information can be found

atwww.gov.uk/tax-on-dividends.

Dividends payable in foreign currencies

Equiniti is able to pay dividends to shareholder bank accounts

inover 30 currencies worldwide through the Overseas Payment

Service. An administrative fee will be deducted from each

dividend payment. Further details can be obtained from Equiniti

or online at www.shareview.co.uk/info/ops.

Dividend Reinvestment Plan (DRIP)

The DRIP enables shareholders to use their dividends to buy

further Burberry Shares. Full details of the DRIP can be obtained

from Equiniti or online at www.shareview.co.uk/info/drip.

Electronic communication

Shareholders may at any time choose to receive all shareholder

documentation in electronic form via the internet, rather than

inpaper format. Shareholders who decide to register for this

option will receive an email each time a shareholder document

is published on the internet. Shareholders who wish to receive

documentation in electronic form should register online at

www.shareview.co.uk.

Equiniti offers a range of shareholder information and services

online at www.shareview.co.uk.

Financial calendar

AGM: 16 July 2024

First quarter trading update: 19 July 2024

Interim results announcement: November 2024

Third quarter trading update: January 2025

Preliminary results announcement: May 2025

Registered office

Burberry Group plc

Horseferry House

Horseferry Road

London SW1P 2AW

Registered in England and Wales

Registered number 03458224

ShareGift

Shareholders with a small number of shares, the value of

whichmakes them uneconomical to sell, may wish to consider

donating their shares to charity through ShareGift, a donation

scheme operated by The Orr Mackintosh Foundation.

AShareGift donation form can be obtained from Equiniti.

Furtherinformation is available at www.sharegift.org or by

telephone on 020 7930 3737.

Shareholder Information

222

Burberry Annual Report 2023/24

Tips on protecting your information

• Keep any documentation that contains your shareholder

reference number in a safe place and shred any

unwanteddocumentation

• Inform our registrar, Equiniti, promptly when you

changeaddress

• Be aware of dividend payment dates and contact Equiniti

ifyou do not receive your dividend cheque or, better still,

make arrangements to have the dividend paid directly into

your bank account

• Consider holding your shares electronically in a CREST

account via a nominee

Unauthorised brokers (boiler room scams)

Shareholders are advised to be very wary of any unsolicited

advice, offers to buy shares at a discount, or offers of free

company reports. These are typically from overseas-based

‘brokers’ who target UK shareholders, offering to sell them

whatoften turn out to be worthless or high-risk shares.

Theseoperations are commonly known asboiler rooms.

If you receive any unsolicited investment advice, obtain the

correct name of the person and organisation, and check that

they are properly authorised by the FCA before getting involved.

This can be done by visiting www.fca.org.uk/register/.

If you deal with an unauthorised firm, you will not be eligible to

receive payment under the Financial Services Compensation

Scheme if things go wrong.

If you think you have been approached by an unauthorised firm,

you should contact the FCA consumer helpline on 0800 111 6768

from the UK, or +44 207 066 1000 from outside the UK.

More detailed information can be found on the FCA website at

www.fca.org.uk/consumers/protect-yourself/unauthorised-firms.

223

Burberry Annual Report 2023/24

Disclaimer: The purpose of this Annual Report is to provide information to the members of Burberry Group plc. This document contains certain statements

withrespect to the operations, performance and financial condition of the Group including among other things, statements about expected revenues, margins,

earningsper share or other financial or other measures. Forward-looking statements appear in a number of places throughout this document and include

statements regarding our intentions, beliefs or current expectations and those of our officers, Directors and employees concerning, amongst other things,

ourresults of operations, financial condition, liquidity, prospects, growth, strategies, the business we operate and climate change, nature, circular economy and

broader sustainability-related targets and activities. These statements inherently involve uncertainty and are subject to a number of risks since future events and

circumstances can cause actual results and developments to differ materially from those anticipated and may not entirely be within our control. The forward-looking

statements reflect knowledge and information available at the date of preparation of this document and unless otherwise required by applicable law the Company

undertakes no obligation to update or revise these forward-looking statements. Nothing in this document should be construed as a profit forecast. All members,

wherever located, should consult any additional disclosures that the Company may make in any regulatory announcements or documents which it publishes.

TheCompany and its Directors accept no liability to third parties in respect of this document save as would arise under law of England and Wales. This document

does not constitute an invitation to underwrite, subscribe for or otherwise acquire or dispose of any Burberry Group plc shares, in the UK, or in the USA, or under

the USA Securities Act 1933 or any other jurisdiction.

Pages 1-224 are printed on Revive Offset which is made from 100% de-inked pulp recycled fibre. The cover of the report is

printedonColourplan White Frost. This Product is made from recycled materials and other controlled sources. Printed in the UK

byPureprint who are a Carbon Neutral Company using their technology. Both the manufacturing mills and printer are registered

totheEnvironmental Management System ISO14001 and are Forest Stewardship Council

( FSC

) chain-of-custody certified.