Company Announcements

• The Group Incident Management Team (GIMT) was set up to co-ordinate the business response to the COVID-19 outbreak. The

Group's response is being managed through five key workstreams led by the Executive Committee and chaired by our CEO.

• The health and safety of our people is paramount. The key focus of our response has been on our people, our customers and our communities. We have prioritised their wellbeing and communicated regularly with all our

stakeholders.

• We have devised a plan of strategic initiatives to navigate through this period of decreased demand and capture opportunities as consumer confidence and markets rebound.

• Burberry has significant financial headroom in the form of £0.9 billion cash balances including £0.3 billion drawn from the Revolving Credit Facility. The Group has completed detailed stress testing to understand the extent to which the Group could withstand a loss of sales

within the limits of its available financial resources. Details of this stress testing are set out in the viability assessment on page 117.

• We closed sites across Asia, EMEIA and the Americas, ahead or in line with government restrictions in order to prevent the spread of COVID-19 and ensure our employees', our customers' and our communities' safety and wellbeing. This includes the closure of our head

office in London as well as internal manufacturing sites across the UK and in Italy.

• As part of our overarching response we are monitoring the regulatory landscape. We are engaging regularly with government and local authorities in each of our core geographies to ensure we have the right support for our business and for our people.

• We are managing cash and costs to protect the Group's liquidity. A comprehensive cost mitigation programme has been established, which includes delaying discretionary capital

expenditure to focus only on that which is essential and to strengthen the brand.

• We keep product, inventory and supply chain under constant review to maintain supply chain operations while optimising buying commitments.

• We have adapted our technology for greater home working to ensure all vital operations and projects remain on track. A dedicated support page and helpline has been set up to support

employees with any concerns they have.

• We have defined a strategy that leverages our

brand appeal and global reach across multiple

customer segments and regions to mitigate

reliance on a particular customer group, however, we recognise the importance of

Mainland China and the Chinese consumer to

the luxury industry, as explained in the Global

Chinese Consumer Spending risk.

• In the short term, we continue to assess shifts

occurring in the industry and with customers

to ensure our plans are dynamic and responsive

to the market.

• We monitor external macroeconomic and

regulatory changes and perform horizon

scanning supported by insights from the

Treasury and Strategy teams into

macroeconomic trends.

• Our steering committee continually monitors

the evolving impact of the post-transition

trading relationship between the UK and the

EU, and oversees our approach.

• While the transition period until 31 December

2020 offers temporary relief, we are prepared

for a no-trade-deal scenario at the end of 2020

across all business activities, including supply

chain, trade compliance, intellectual property

and people.

• We engage with UK Government departments

and other external stakeholders to ensure they

are fully informed of our circumstances.

• FY 2019/20 marked the end of our multi-year strategy's first phase, which focused on re-energising the brand, optimising our distribution networks and ensuring a smooth creative

transition to reflect Riccardo Tisci's vision for Burberry.

• The strategy team and creative business owners for each pillar co-ordinate delivery of the programme, monitor the risks associated with each of the major programmes, and track progress and benefits.

• We have increased our focus on measuring progress in our transformation. We have designed a set of lead indicators to assess progress in product, communications, store

performance and service.

• We continued to strengthen consumers' perception of our brand, signalling luxury through our campaigns and disruptive media experiences.

• We continued to deliver newness and exceptional product, having established our new product architecture and strengthening in leather.

• We have made good headway in transforming our distribution channels by aligning our mainline stores to the new creative vision, and completing the transition of our US wholesale to

luxury fashion.

• On digital, we remained focus on strengthening our relationship with customers with unexpected and innovative activations, such as games and social drops.

• Our Inspired People initiatives include leading the Groupwide Engagement Survey. This has shown a marked increase in the understanding of our strategic goals and transformation plan within the Group.

• Within the business, we prioritised building resilience in a period characterised by exceptional uncertainty by taking a series of rapid actions across four areas: protecting our people and communities; tightly managing cash and costs; securing our product, inventory and supply chain; and driving revenue.

• We have devised a plan of strategic initiatives set out on page 30 to navigate through this period of decreased demand due to the COVID-19 pandemic and capture opportunities as consumer confidence and markets rebound.

• Training and monitoring of adherence by personnel to the requirements in the Group's Responsible Business Principles.

• Codified incident management policy, monitoring of social networks and response procedures.

• Oversight of mitigation of reputational issues by the Ethics and Risk Committees.

• The Group has established Corporate Responsibility (CR) standards, which aim to ensure compliance with labour, human rights, health and safety and environmental standards across our operations and extended supply chain.

• Supplier audits and supplier training programmes are examples of the actions and programmes that have been put in place in day-to-day operations.

• Strengthening our approval processes and editorial controls to ensure all product and content is reviewed and signed off prior to external release.

• Onboarding of a Director of Diversity and Inclusion; development of a global Diversity and Inclusion strategy, and the creation of an External Advisory Council comprised of thought leaders across the diversity and inclusion landscape to provide insight and help raise

Burberry's consciousness and understanding of social issues. Creation of an Internal Diversity and Inclusion Council to support the implementation of the strategy.

• Increasing awareness of and training with respect to Burberry's Model Well‑being Policy to all people who engage with model on Burberry's behalf, including employees, freelancers, casting agents, contractors and

external third parties to ensure they adhere to the policy.

• Burberry took prompt action across Asia to comply with local health guidelines and protect our people, our customers and our communities.

• Scenario planning and analysis was undertaken to understand the long-term impact of the global pandemic on Mainland China, including a review of the fixed and variable cost strategy.

• Prior to the outbreak of COVID-19 there had been significant focus on building brand heat in Mainland China. A clear strategy had been set, including building new strategic social partnerships, such as with Tencent, and strategic locations and making customer

experiences, storytelling and products more locally relevant. This strategy will continue assuming China continues to rebound from COVID-19.

• Development and execution of Mainland China

strategy, including specific product designed for Lunar New Year and additional marketing spend to support growth targets.

• Investment in inventory and technology to support Mainland China digital across our own platforms and those of our third-party partner platforms.

• Supporting investment and growth strategies in other global markets to reduce Burberry's exposure to an individual country or group of customers.

• Burberry seeks to hedge anticipated foreign currency transactional cash flows using financial instruments. These are mainly in Burberry's centralised supply chain and wholesale business. Burberry does not hedge intragroup foreign currency transactions at present.

• Burberry monitors the desirability of hedging the net assets of non-pound sterling subsidiaries when translated into pound sterling for reporting purposes. We have only entered into modest transactions for this purpose in the current and previous year.

• Burberry monitors the overall impact of unhedged exchange movements and provides guidance to shareholders if exchange rates move on a quarterly basis.

• Governance provided through a cross-functional Cyber Security Steering Group with Executive membership and sponsorship.

• Continued investment in Information Security

capabilities.

• Second line assurance checks reporting on control effectiveness to Executive and IT management through monthly scorecards.

• 24/7/365 Security Monitoring and Analytics

capability supported by robust security incident

response processes.

• Information Security Advisory function to embed security in new projects and initiatives.

• Security Training and Awareness and phishing

tests rolled out to employees globally with

completion monitoring.

• Implementation of solutions to help detect personal and sensitive data loss with improved control over user access management.

• Test responses to cybersecurity incidents

through simulations.

• Data Privacy Steering Committee, a cross-functional group to review data controls around existing systems and assess the potential data risks (from both a legal and reputational perspective) associated with new IT, Marketing, Retail and Digital initiatives across Burberry.

• Ongoing collaboration between the Data Protection office, Legal, IT and Information Security functions to ensure policies are adhered to with respect to the appropriate collection, security, storage, retention and

deletion of personal data.

Leadership and Culture

• The Leadership Development Programme ran for its second year, with two additional cohorts going through the programme to engage and equip leaders. The programme comprises 360 feedback, coaching and a three-day event. To date, the Executive Committee, senior leadership team and 150 leaders have completed the programme.

• A third global Employee Engagement Survey was carried out in July 2019, with results published in September. We saw overall engagement increase by 1%, with 87% of employees confirming that they were proud to work at Burberry. Leaders are held accountable for delivering against agreed action plans.

• Leaders were equipped with regular strategy updates, including talking points and regular leaders calls aimed at the director plus population, to engage their teams on the strategic direction and build a sense of belonging to the inclusive culture at Burberry. The Engagement Survey illustrated a positive shift that 'senior leaders give employees a clear picture of the direction Burberry is headed' (from 69% in 2018 to 71% in 2019).

Talent and Careers

• The identification of all critical roles was completed across the business and succession planning for all Executive Committee, Senior Leadership and key creative and commercial roles was carried out.

• A framework for talent management was defined and presented to the Board of Directors; a new VP of Talent joined the organisation and will help embed the evolution of our talent management approach.

• Inclusive Leadership training was delivered to 90% of all people leaders, including Retail Managers at Retail Conferences, and is now being offered as a part of our regular learning curriculum.

• A recruitment toolkit and accompanying training was rolled out for all hiring

managers, ensuring that we get diverse and representative talent with the right organisational fit in a fair and consistent manner.

Reward & Recognition

• A simplified, more effective performance management process across the business has been rolled out with a five-point performance rating scale and a new framework for quarterly

performance conversations between all managers and their direct reports.

• A new set of reward plans to drive increased sales and ATV was rolled out for the retail population in EMEIA and the Americas; a

further rollout for Asia is planned for the upcoming year.

• A review of our compensation plans for which over a third of our workforce is eligible has been conducted to ensure alignment between the wider workforce and the new Directors'

Remuneration Report (which will be proposed for approval at the 2020 AGM).

Diversity and Inclusion and Employee Relations

• The onboarding of a new Director of Diversity and Inclusion has been completed as well as the development of Burberry's global Diversity and Inclusion strategy, which was presented to the Board of Directors in March.

• An External Advisory Council, comprised of thought leaders from across the diversity and inclusion landscape, as well as an Internal

Diversity and Inclusion Council, comprising Burberry employees, have been established to act as a sounding board for the

implementation of the global Diversity and Inclusion strategy.

• The onboarding of a new VP of Employee Relations has seen the refinement of the Employee Relations operating model and a

revision of our core policies and procedures.

• The rollout of a new global parental leave policy has seen an increase in the amount of paid leave globally for all employees,

with all new parents receiving 18 weeks' paid leave and four weeks on reduced hours when they return to work.

• The celebration of global events such as World Mental Health Day, International

Women's Day and Black History Month (in the USA) saw great participation across our global employee population.

Wellbeing

• The rollout of the Smarter Working programme, underpinned by Microsoft technology platform and a new flexible working policy, has allowed employees to work more flexibly.

• 63 employees across the UK, Hong Kong S.A.R. and the UAE have now been trained as qualified mental health first aiders, with

further courses scheduled.

• Our Employee Assistance Program is now available to all employees globally, offering a range of services, including individual counselling.

• Establishment of an IT Portfolio Forum with

Executive representation to support IT investment decisions and oversee delivery of prioritised IT programmes and initiatives.

• IT function has been strengthened with clear alignment between the IT teams, the strategic pillars, business functions and operations.

• Implementation of Controls to help maintain the continuity of the Group's IT systems, including business continuity and IT recovery plans, which would be implemented in the event of a major failure.

• A tested Group incident management framework is in place to report, escalate and respond to high‑impact events.

• We have policies and procedures in place designed to ensure the health and safety of our employees and to deal with major incidents, including business continuity and disaster recovery.

• The Group continues to evolve its supply chain organisational design to develop its manufacturing base, reducing dependence on key sites and vendors.

• A Group incident management framework is in place to ensure that incidents are reported and managed effectively. Across the Group, our

Incident Management Teams managed 16 incidents in the year. The two longest running incidents were related to the Hong Kong S.A.R. disruptions and the COVID-19 pandemic. In both cases, teams worked to mitigate the

impact on our employees, customers and the business. The remainder of these incidents were localised to fire and flood related issues or

interruptions in the regular running of stores, offices and systems.

• Our Group Incident Management Team and Regional Incident Management Teams all took part in training and incident management exercises involving large parts of the Group, our customers and media relations function. Our

plans as tested during the year were found to be effective.

• Our product suppliers and vendors are subject to a quality control programme, which includes regular site inspections and independent

product testing.

• Robust security arrangements are in place across our store network to protect people and products in case of security incidents.

• Business continuity plans are in place for our 10 main sites, including our three major distribution centres and our two UK factories. Business continuity plans are being developed for our third factory, Burberry Manifattura in Italy.

• The Group's key IT systems are protected to prevent and minimise any potential interruption. This includes resilient design and the provision of disaster recovery services to continue operating within pre-agreed times in case of a major incident. Our plans as tested during the year were found to be effective.

• Management regularly reviews and manages business continuity and disaster recovery risks, recognising that these plans cannot always ensure the uninterrupted operation of the business, particularly in the short term.

• A comprehensive insurance programme is in place to offset the financial consequences of insured events, including fires, flood, natural catastrophes and product liabilities.

• The Group monitors and seeks to continuously improve processes to gain assurance that its licensees, suppliers, franchisees, distributors and agents comply with the Group'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 polices, laws and regulations relevant to their roles.

• Ethical trading, environmental sustainability and community investment matters reported to the Ethics Committee, Risk Committee and the Board.

• Assurance processes are in place to monitor compliance in a number of key risk areas, with results being reported to our Risk Committee and Audit Committee.

• We have an established framework of policies that aim to drive best practice across our direct and indirect operations, including our Responsible Business Principles and Global Environmental Policy. Policies available at

Burberryplc.com, are owned by senior leadership and are issued to all supply chain partners. Their implementation is monitored on a regular basis.

• We have established a Data Privacy Steering Committee to oversee compliance with applicable data legislation.

• International tax reform is a key focus of attention with significant developments reported to the Audit Committee.

• We have a wide range of global programmes that tackle educational inequality, foster community cohesion and enhance social and economic empowerment.

• Rollout of annual mandatory training to all employees and to targeted functions

to ensure awareness and compliance with our policies governing anti-bribery and anti-corruption (ABAC), Market Abuse Regulations, annual conflict declarations, criminal finances, anti-money laundering and privacy.

• Our culture and policies encourage employees to speak up and report any issues

without fear of retribution. A global confidential employee helpline is in place in almost all countries where we have retail or corporate locations, and where it is legally permitted. All calls and emails are logged and independently reviewed and followed up. During the year 158 cases were received and the results and

themes are reviewed by the Ethics Committee. No significant issues were identified from these cases during the year.

• In accordance with our ABAC policy, annual training is required to be performed. This year the annual e-learning module was rolled out to all corporate staff and manufacturing and retail employees of manager level and above, a total of 3,614 employees. The training reached a 96% completion rate. Any incidents or potential areas of concern are investigated by highly

experienced investigators in our Asset and Profit Protection team and ABAC risks are covered as part of the scope of Internal Audit reviews. During the year there were no ABAC‑related issues.

• The Group's global Brand Protection team is responsible for brand protection efforts globally, online and offline.

Where infringements are identified these are addressed through a mixture of criminal, civil and administrative legal action and negotiated settlements.

• Trademarks, copyrights and designs are registered globally across all appropriate categories.

• The Brand Protection team partners closely with the design and merchandising teams to ensure that our products do not infringe the rights of third parties and to ensure that we have adequate protections in place prior to market entry.

• The teams explore new and emerging threats and ways to combat threats.

• The team partners regionally with enforcement agencies and our digital partners to minimise the visibility of counterfeit and parallel trade products both online and offline.

• We aim to disrupt the flow of counterfeit products by enforcing at source level.

• Brand protection controls have been implemented to safeguard the brand in connection with our commitment to stop destroying unsaleable finished products.

Physical Risks

• To help identify future areas for focus to mitigate climate-related physical risks we completed three scenario analysis workshops,

which assessed long-term environmental, social and technological trends.

• In the short term, we are conducting specific analysis of the acute risk of our locations and operations.

• We have assessed the climate change risk in our finished goods and raw material supply chain by evaluating the exposure, vulnerability

and readiness of the countries we operate in and where our key supply chain partners are located.

• In our own operations and supply chain we continue to use the WWF water risk assessment tool and the Aqueduct Water Risk Atlas to

identify current risks, anticipate potential future strains on water resources, and understand emerging long-term risks.

• We use science-based targets to focus our efforts in order to address GHG emissions along our entire value chain. This is described in our Responsibility section (page 67).

• We support a number of industry initiatives that address climate change impacts, including the Ellen MacArthur Foundation's Make

Fashion Circular Initiative, New Plastics Economy Global Commitment, UN Fashion Industry Charter for Climate Change, The

Fashion Pact and the SFA.

• We invest in programmes that help to sustain our industry and supplier communities, specifically initiatives that tackle educational inequality, support social and economic development and community cohesion.

• In FY 2019/20, we established a Regeneration Fund to support insetting projects in the supply chain that will reduce the carbon impact of our raw materials and improve biodiversity and local

producer livelihoods.

• We continuously engage and educate employees around the topic of climate change through focused events, strategic communications and volunteering opportunities.

Transitional Risks

• Through our memberships with various industry bodies, associations (for example, The Climate Group) and external assurance partners, we contribute to consultations and are kept informed of upcoming environmental legislative changes.

• Environmental sustainability matters are reported to the Sustainability Steering Group, the Ethics Committee, the Risk Committee and the Board.

• Our longstanding responsibility programmes, coupled with our 2022 Responsibility goals, are driving continuous improvements in moving beyond social and environmental compliance.

• We identify and explore scarce resources while also developing alternative materials through research and development.

• Our target is for 100% of our products to have more than one positive attribute by 2022.

• We continue to increase our sustainable product mix, by including recycled content, bio-based materials and more sustainable cotton in our collections. We have also worked directly with cotton growers in the USA to develop a fully traceable organic cotton supply for the future.

• In FY 2019/20 we assessed the potential impact of commodity price changes over the medium term.

• In FY 2019/20 we introduced our product sustainability messaging to make customers aware of our improved sustainability credentials. We also increased sustainability messaging in brand-related communications.

• As part of scenario analysis workshops we assessed long-term technological trends that could significantly impact our business model.

• Our IT Innovation team is exploring new systems and ways in which sustainability priorities can be supported by advancements

in technology.

• We continue to increase our focus on zero-waste mindset across the business and have a clearly defined waste hierarchy. We have

established a waste baseline and are setting targets and KPIs that will cover operational, manufacturing and finished goods waste as well as packaging. Since FY 2018/19 we have publicly committed to not destroying unsaleable finished products.

• Our climate goals are approved by the Science Based Targets initiative (SBTi) and in line with the Paris Agreement goal of reducing carbon levels to keep the global temperature increase under 1.5˚C.

• In line with the increased expectations of our stakeholders, we are providing more transparency in our corporate reporting, as well as disclosing a number of Environmental, Social and Governance (ESG) investor indices.