ANNUAL REPORT 2020/21

1 ANNUAL REPORT 2020/21 ANNUAL REPORT 2020/21 INHERENT IN EVERY BURBERRY GARMENT IS FREEDOM Thomas BurberryCONTENTSS trategic Report2 Highlights6 Chairman s Letter10 Chief Executive Officer s Letter14 Purpose16 Business Model18 Investment Case20 Luxury Market Environment24 Strategy45 Key Performance Indicators48 Group Financial Highlights55 Capital Allocation Framework56 Supporting Our Stakeholders During COVID-1960 Environmental, Social and Governance67 Our People74 Our Communities83 The Environment 92 Sustainability Bond94 Non-Financial Information Statement96 Stakeholder Engagement104 Board Engagement106 Risk and Viability Report133 Task force on Climate-Related Financial Disclosures (TCFD)

2 138 Risk Management Activities in FY 2020/21140 Our Viability StatementCorporate Governance Statement146 Board Leadership and Company Purpose 146 Chairman s Introduction148 Board of Directors152 Executive Committee153 Corporate Governance Report155 Principal areas of focus for the Board during FY 2020/21162 Division of Responsibilities162 Governance Structure and Division of Responsibilities166 Composition, Succession and Evaluation166 Board Evaluation168 REPORT of the Nomination Committee173 Audit, Risk and Internal Control173 REPORT of the Audit Committee180 Remuneration 180 Directors Remuneration Report204 Directors ReportFinancial Statements210 Statement of Directors Responsibilities211 Independent Auditor s REPORT to the Members of Burberry Group plc224 Group Income Statement225 Group Statement of Comprehensive Income226 Group Balance Sheet227 Group Statement of Changes in Equity228 Group Statement of Cash Flows229 Notes to the Financial Statements287 Five-Year Summary290 Company Balance Sheet291 Company Statement of Changes in Equity292 Notes to the Company

3 Financial Statements300 Shareholder Information1 FINANCIAL AND OPERATIONAL HIGHLIGHTSR evenue by region1,2,3 Americas 475m, -15% at CER Number of stores: 86 Europe, Middle East, India and Africa (EMEIA) 628m, -35% at CER Number of stores: 120 Asia Pacific 1,203m, +16% at CER Number of stores: 209 Period ending m27 March 202128 March 2020 Retail1,9102,110 Wholesale396476 Licensing3847 Period ending m27 March 202128 March 2020 Accessories841948 Women s653796 Men s668715 Children s, Beauty and other144127 Total revenue by channel Retail/wholesale revenue by destinationRevenue by product2 Retail/wholesale revenue by product division1.

4 All references to revenue growth on page 2 are presented at Constant Exchange Rates (CER). See page 49 for reconciliation to total Retail/wholesale For more detail on performance see Group Financial Highlights on pages 48 to REPORT | At a GlanceRevenueAdjusted operating profitAdjusted diluted EPSCash (net of overdrafts)*Operating profitDiluted EPSA lternative performance measures, including adjusting measures, are defined on page 53. Pro forma FY 2019/20 results are included to better indicate the impact of adoption of IFRS 16 Leases in FY 2019/20. These pro forma results are estimations of the results for FY 2019/20 if the previous accounting standard for leases, IAS 17 Leases, had been applied.

5 *The Group also had borrowings at March 2021 of 297m (March 2020: 300m). 2,344m2018201920202021 2,633m 2,733m 2,720m2017 2,766m 433m 396m2018201920202020 Pro forma2021 404m 467m 438m2017 459mPro forma 189m 521m20182019202020202021 160m 410m 437m2017 forma 1,216m2018201920202021 887m 892m 837m2017 809mDividend per REPORT | At a GlanceEnvironmental, Social and Governance (ESG) highlightsAs a purposeful, values-driven brand, we are committed to being a force for good in the world. We champion diversity, equity and inclusion and prioritise the wellbeing of our people.

6 We support our communities, in particular young people, providing them with the skills, confidence and opportunities to succeed. We are building a more sustainable future for luxury by reducing our environmental impacts and helping transform our industry. Below are some of our achievements in these areas over the past year. Read more about this on pages 60 to Rolled out a new global Diversity and Inclusion strategy and policy Launched an industry-leading global Parental Leave policy Maintained a leading position in the FTSE 100 for women in leadership for the third straight year, according to the 2020 Hampton-Alexander Review REPORT Included in the 2021 Bloomberg Gender-Equality Index for the first time, scoring 10 percentage points more than the company average The first luxury company to partner with organisations including the Business Disability Forum.

7 Investing in Ethnicity and the Stonewall Diversity Champions Programme, and one of the first of our peers to join The Valuable 500 ENVIRONMENT Reduced our market-based emissions by 92% since 2016 Currently source 93%^ of our electricity from renewable sources Reduced our scope 1 and 2 emissions by 84% compared to FY 2016/17 and reduced our scope 3 emissions from purchased goods and services by nearly 8,700 tonnes Launched ReBurberry Edit, a selection of key pieces from the Spring/Summer 2020 collection, crafted from the latest sustainable materials Launched dedicated in-store aftercare spaces and piloted Trench Refresh and Leather Restore services Launched ReBurberry Fabric programme with the British Fashion Council, donating more than 7,000 metres of leftover fabrics to fashion students across 33 schoolsCOMMUNITIES Manufactured and donated Personal Protective Equipment (PPE)

8 To medical and care professionals Contributed to COVID-19 vaccine development and distribution through early donations to the University of Oxford s emergency vaccine research and UNICEF s COVID-19 Vaccines Appeal Supported charities, including FareShare, The Trussell Trust and The Felix Project, helping tackle food poverty across the UK Partnered with Marcus Rashford MBE and charities supporting youth in the UK, USA and Asia Expanded creative arts scholarships, supporting underrepresented students ^See page 654 Strategic REPORT | At a GlanceCHAIRMAN S LETTER WE WILL CONTINUE TO BE GUIDED BY THE SAME COMMITMENT TO DOING WELL BY DOING RIGHT BY ALL OUR STAKEHOLDERS.

9 6 Strategic REPORT | Chairman s LetterDear Shareholder, More than a year has passed since the beginning of the COVID-19 pandemic. Like the rest of the world, everyone at Burberry has experienced great upheaval as we have had to adapt to living and doing business differently. As the crisis continues to evolve, ensuring the safety of our colleagues and our customers while meeting the challenges presented by the global health emergency remains our top the past year, under the stewardship of Marco Gobbetti, we relied on our purpose, Creativity Opens Spaces, to guide us in completing the first phase of our brand transformation, whilst at the same time acting responsibly in everything we do.

10 Responding to COVID-19To respond to the upheaval caused by the pandemic, we looked hard at our cost base, reducing investment in non-urgent areas whilst protecting our people and our allowed us to take the following actions: We maintained base pay for all employees who were unable to fulfil their roles because of store or site closures We did not rely on government employment support in the UK, home to more than a third of our global workforce Our senior leaders took a 20% pay cut from April through June 2020 The Board of Directors also took a voluntary 20% reduction in their base salary and fees from April through June 2020, with the equivalent cash amount donated to The Burberry Foundation COVID-19 Community Fund.