Burberry : Interim results for 26 weeks ended 29 September 2018

*See page 11 for definitions of alternative performance measures

• Exceptional response to new creative vision, including rebranding and Riccardo's debut collection
• Successful launch of new go-to-market model, with social selling innovation contributing to building brand heat
• Consumer perception shifting; significant increase in engagement on Instagram and WeChat. Organic endorsement from some of the world's most followed influencers
• Strong wholesale response to new product;distribution headwind through to FY 2020, as guided, with majority of negotiations now completed
• Managing business dynamically in period of transition to deliver financial objectives and protect the brand

Outlook

• Maintaining FY 2019 guidance including delivery of cumulative cost savings of £100m

All metrics and commentary in the Interim Review exclude adjusting items unless stated otherwise.

^# Constant exchange rates (CER) removes the effect of changes in exchange rates compared to the prior period. This takes into account both the impact of the movement in exchange rates on the translation of overseas subsidiaries' results and also on foreign currency procurement and sales through the Group's UK supply chain.

With effect from 1 April 2018, Burberry is preparing its full year consolidated financial statements to a Saturday within seven days of the 31 March. The 26-week period ended 29 September 2018 has one fewer day than the prior year comparative period ended 30 September 2017. For more detail please see page 9.

The following alternative performance measures are presented in this announcement: adjusted performance measures, comparable sales, revenue excluding Beauty wholesale and free cash flow. The definitions of these alternative performance measures are set out in the Appendix on page 11.

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

Certain financial data within this announcement have been rounded.

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