annual report years burberry pioneered clothing protects people elements outfitting polar explorers inspiring people embrace outdoors create outerwear affords wearer freedom function protection style whatever weather strategic report chair letter chief executive officer letter highlights heritage innovation strategy business model global luxury market business update financial measures financial review capital allocation framework people culture sustainability burberry section statement stakeholder engagement non financial sustainability information statement risk viability report viability statement corporate governance statement chair introduction board directors executive committee corporate governance report governance structure division responsibilities composition succession evaluation report nomination committee report audit committee directors remuneration report directors report financial statements statement directors responsibilities independent auditor report members burberry group plc group income statement group statement comprehensive income group balance sheet group statement changes equity group statement cash flows notes financial statements five year summary company balance sheet company statement changes equity notes company financial statements shareholder information information visit burberryplc com burberry annual report dear shareholder particularly difficult year burberry creative transition launched struggled gain traction customers backdrop macroeconomic uncertainty luxury market proved challenging anticipated resulting first half loss suspension dividend payments board took decisive action change course stabilise business return sustainable profitable growth aimed delivering improvement second half july appointed joshua schulman chief executive officer ceo replacing jonathan akeroyd stepped left company mutual agreement board josh proven leader outstanding record building global luxury brands driving profitable growth already strong understanding brand extensive experience luxury fashion key realising burberry full potential read letter follows josh sets board analysis burberry recent underperformance burberry forward transformation plan reignite brand desire improve performance drive long term value creation placing customer centre everything shareholder returns context ongoing challenging macroeconomic environment board focusing strengthening competitive position balance sheet underpin long term growth mentioned july took decision suspend dividend payments respect line capital allocation framework prudent approach support business execute burberry forward transformation whilst priority reinvest business intention return progressive dividend policy soon possible board welcomes discussions shareholders directors held several meetings financial year variety topics including strategy dividends board composition executive remuneration environmental social matters see page information board changes addition appointment new ceo non executive composition board continued evolve december announced appointment stella king independent non executive director stella joined board april wealth luxury industry experience profound understanding asian luxury consumers thanks years experience working within asia pacific region information board recruitment induction processes josh stella provided nomination committee report pages debra lee stepped board agm last july announced fabiola arredondo antoine saint affrique sam fischer retire non executive directors following agm debra fabiola sam antoine played important role burberry journey behalf board thank contributions service company sustainable business sustainability continues important area focus board continued monitor progress burberry beyond commitments heritage deeply connected outdoors remain committed delivering goals strengthening burberry resilience lowering environmental impacts supporting people communities spirit continued expand burberry inspire flagship programme burberry foundation working partnership youth focused organisations support young people create positive impact global local level looking ahead early stages business transformation navigating current global uncertainty made even challenging policy decisions impacted sales increased operating costs burberry forward requires step change global cost base ensure burberry competitive fit future regrettably change could impact around jobs across burberry around half board confident josh leadership burberry forward set business path sustainable profitable growth seen significant improvement brand sentiment second half encouraging resilience core scarf outerwear categories much clearer shared vision future continue write next chapter burberry storied history one built strengths celebrates heritage like josh board convinced burberry best days lie ahead transformation journey would possible without passion commitment people demonstrated ability evolve adapt past challenging months would like take opportunity thank well board customers shareholders continued support gerry murphy chair strategic report chair letter setting burberry path sustainable profitable growth burberry annual report shared vision continue build next chapter burberry storied history one leverages strengths celebrates heritage looking ahead future burberry annual report dear shareholder deeply honoured writing burberry chief executive officer joined burberry challenging time business moved far fast disappointing results brand expression modern expense celebrating heritage introduced unfamiliar brand codes customers prioritised niche seasonal fashion obscuring timeless core collections pursued brand elevation took pricing high resulted significant financial underperformance yet first months reaffirmed belief burberry extraordinary luxury brand quintessentially british equal parts heritage innovation luxury brand founded principle clothing protect people weather never relevant today clear burberry opportunity authenticity already rekindling unique creative commercial alchemy defined burberry best still early turnaround optimistic ever burberry best days ahead performance disappointing first half moved urgency course correct stabilise business position burberry return sustainable profitable growth revenue million reduction constant exchange rates adjusted operating profit million reduction constant exchange rates reported operating loss million reduction adjusted diluted earnings per share eps loss per share pence reduction constant exchange rates reported diluted eps loss per share pence reduction burberry forward november set burberry forward strategic plan reignite brand desire improve performance drive long term value creation made immediate interventions reset brand storytelling enhance visual merchandising stores online align product focus core categories actions resulted significant improvement comparable retail sales second half year relative first half shifted timeless british luxury brand expression campaigns including always burberry weather wrapped burberry delivered strongest improvement seen brand desirability three years taken decisive action reassert authority core categories outerwear scarves iconic products take centre stage stores seeing early success styles carry beloved brand codes including burberry check aligned pricing category authority changes positive response customers gives confidence path ahead heart burberry forward commitment restoring culture creative commercial alchemy rigorously focused customer ensure organisation fit purpose demanding dynamic global market proposed changes aimed enhancing collaboration increasing agility aligning cost base size drive efficiency profitability protecting investment consumer facing areas expect proposed changes unlock additional million savings enabling continue fund biggest growth opportunities incremental previously announced million cost savings programme bringing combined annualised savings million looking ahead still early stages turnaround challenging macroeconomic environment focus accelerating early progress made reigniting brand desire requisite topline growth confident get back generating billion annual revenue time rebuilding margins driving strong cash generation years burberry embraced innovation exploration would like thank colleagues around world efforts reignite brand desire deliver turnaround brand resilient enduring kinds weather committed seizing opportunities lie ahead joshua schulman chief executive officer strategic report chief executive officer letter opportunity authenticity burberry annual report still early transformation optimistic ever burberry best days ahead burberry annual report asia pacific stores emeia stores americas stores retail wholesale licensing accessories womenswear menswear childrenswear strategic report highlights highlights total revenue revenue region revenue channel revenue product burberry annual report adjusted diluted eps diluted eps operating loss profit cash net overdrafts adjusted operating profit people positively impacted community programmes supported burberry group plc burberry foundation reduction scope emissions base year key raw materials products certified responsibly sourced defined sustainable raw materials portfolio group also borrowings march march metric subject external independent limited assurance ernst young llp results assurance see independent limited assurance report burberry sustainability basis reporting burberryplc com burberry annual report acclaimed anglo irish explorer sir ernest shackleton wears burberry gabardine three expeditions early century including mission cross south pole board endurance strategic report heritage innovation heritage innovation steeped british culture heritage reflects belief clothing protect people weather luxury brand driven deliver innovation products authentic roots inspiring customers aged thomas burberry establishes burberry basingstoke england company founded principle clothing protect people weather equestrian knight design ekd crowd sourced public competition create new logo brand imbued symbolism represents protection innovation burberry forward looking spirit banner reads prorsum translates latin forwards signalling company direction travel equipped burberry gabardine tent clothing norwegian explorer roald amundsen team become first people reach south pole thomas invents gabardine lightweight breathable weatherproof tearproof cloth genius lies small pockets air allow ventilation textile innovation marks milestone burberry creative legacy invented thomas burberry tielocken coat patented predecessor trench coat proves popular among officers world war coat closes strap buckle fastening features single button collar thomas burberry creates burberry trench coat design born function protect military personnel world war detail serves purpose epaulettes originally displayed officer rank rings used attach equipment features burberry trench remain today burberry annual report king george grants burberry first royal warrant tailor burberry check registered trademark introduced trench coat lining instantly recognisable world burberry check one iconic brand codes burberry sponsors record breaking flight croydon cape town aeroplane called burberry aviators flying officer arthur clouston betty kirby green wear burberry mid always burberry weather used slogan often accompanied satirical century images depicting range weather conditions queen elizabeth grants burberry royal warrant weatherproofer burberry becomes official outerwear supplier british women olympic team participating tokyo olympics buyer burberry paris store flash inspiration preparing fashion presentation british ambassador sir patrick reilly removes burberry check lining coat uses wrap luggage create umbrella cover burberry check accessory born burberry annual report burberry first luxury brand create instagram account inspire customers engaging beautiful creative digital content burberry acquires factory castleford yorkshire continues make heritage trench coats today burberry opens first bond street london store strategic report heritage innovation proud holder royal warrant harnessing virtual reality technology transforming coffee cups high end packaging burberry unique take luxury fashion experience sets apart peers following initial public offering burberry listed london stock exchange july burberry granted royal warrant outfitter prince wales burberry launches first transactional website serving customers usa company changes name burberrys burberry burberry foundation established charitable trust dedicated helping young people realise potential power creativity burberry donates percentage annual group profit tax charitable causes burberry first luxury brand live stream autumn winter show online bringing collection homes millions people around world burberry launches expansion commerce website burberry com serve countries languages burberry first luxury brand enable customers around world interact shop products online burberry annual report burberry evolves creative expression brand introducing new wordmark refreshed version ekd burberry celebrates heritage launch new book burberry richly illustrated volume filled material burberry archive well additional sources covid pandemic burberry retools factory castleford england make personal protective equipment ppe british national health service nhs burberry leverages global supply chain manufacture source pieces ppe donated nhs healthcare charities burberry granted royal warrant outfitter king charles iii burberry announces partnership victoria albert museum multi year collaboration see fashion gallery redeveloped renamed burberry gallery upon reopening spring burberry opens centre excellence leather goods scandicci italy burberry foundation launches burberry inspire youth engagement programme designed empower young people yorkshire creativity burberry annual report burberry annual report place customer centre everything brand timeless british luxury product lead outerwear distribution align distribution product customer strategy people reignite high performance culture burberry forward november announced burberry forward strategic plan reignite brand desire improve performance drive long term value creation opportunity authenticity next phase focus reconnecting brand founding principle design clothing protect people weather leaning heritage leveraging strengths disciplined approach believe opportunity authenticity part evolving brand expression product offer appeal broad base luxury customers refreshed strategy outlines clear path forward placing customer centre everything focuses four pillars drive transformation burberry annual report brand timeless british luxury since burberry created practical stylish solutions customers today staying true british roots juxtaposing heritage innovation reignite brand desire pivoting timeless british luxury celebrate britishness way customers easily understand using culturally relevant talent storytelling reflects british wit style imagery features iconic london landmarks british countryside making brand instantly recognisable balance seasonal fashion messages campaigns focused category authority always burberry weather campaign celebrates longstanding heritage outerwear celebrate iconic brand signifiers including burberry check equestrian knight design ekd disciplined use heritage brand codes allowing strengthen brand identity strategic report strategy burberry annual report product lead outerwear luxury brand founded principle clothing protect people weather building outerwear authority heroing iconic scarves product strategy anchored principle opportunity authenticity today leaning unique strengths leading core category outerwear strengthening soft accessories aim earn authority complementary categories ready wear natural extension core offering alongside leather goods shoes complement assortment sharpening childrenswear offer align pricing category authority restoring good better best pricing architecture luxury context focus clear consistent branding celebrating iconic burberry check brand signifiers subtle overt ways across products balance assortment seasonal buy focusing key styles burberry annual report distribution align distribution product customer strategy embracing customer centred approach across channels striking right balance prominence productivity profitability align distribution product customer strategy focused striking right balance prominence productivity profitability across channels place customer centre everything stores demonstrate category authority amplifying iconic outerwear scarves increasing product density shop floor roll scarf bars trench destinations across store network build demand categories burberry com reflect category focus commercially relevant product assortment styling appeals luxury customers also improving functionality create inspiring customer friendly online shopping experience optimise presence key wholesale doors continuing focus strategic accounts align long term vision time see opportunities strengthen position key luxury retail commerce partners well global travel retail strategic report strategy burberry annual report reignite high performance culture across business focused organising growth improving executional discipline fostering greater team accountability ensure effectively tracking progress reviewing reporting mechanisms metrics leverage data driven decision making continue uphold commitment sustainability fundamental part key consideration colleagues customers stakeholders people reignite high performance culture enabling colleagues deliver burberry forward enhancing cross functional collaboration rekindling creative commercial alchemy creative commercial alchemy product merchandising marketing design burberry annual report strategic report business model business model respect hold unique heritage equalled desire innovate create beautiful products relevant today luxury customer founding principle inspired weather burberry founded principle clothing protect people weather original performance material gabardine invented thomas burberry breathable weatherproof fabric revolutionised outerwear opened spaces wearers explore outdoors providing warmth protection elements years burberry championed british craft production proudly uphold legacy today preserving traditional craftsmanship driving innovation areas business source seek use responsibly sourced materials highest quality make long lasting products making business decisions consider environmental impacts wellbeing people supply chain design create beautiful products inspired brand heritage elevated instantly recognisable brand signifiers based london headquarters design product merchandising teams work together ensure products delight inspire customers make weave gabardine craft iconic heritage trench coats mill factory yorkshire classic burberry check cashmere scarves made scotland long term partner johnstons elgin operate wholly owned leather goods technical outerwear centres excellence italy work network global suppliers sell sell products directly operated stores concessions wholesale partners globally well via burberry com provide exceptional customer service ensure seamless experience across store online channels products including eyewear beauty work licensing partners benefit product distribution expertise business model rooted innovation british heritage burberry annual report purpose values inspired principles founder purpose values guide operate business purpose creativity opens spaces supported four values uphold every day creatively driven forward thinking open caring proud heritage nurture creativity within business people foster talent creativity purpose driven environment people diversity skills backgrounds life experiences help drive innovation within business proud colleagues represent nationalities across countries territories customers customers heart everything build reinforce connections customers desirable products iconic brand signifiers create unique experiences provide exciting opportunities customers engage brand shareholders aim create sustainable long term value shareholders allocate capital reinvesting organic growth subject capital available allocate dividends strategic inorganic investments additional returns shareholders information see capital allocation framework page people people greatest asset endeavour provide rich rewarding colleague experience aim create workplaces people grow express creativity foster sense belonging also seek protect enhance livelihoods people supply chain respecting upholding human rights communities support local communities operate particular focus driving positive change lives young people work burberry foundation global youth empowerment programme burberry inspire works partnership local organisations create opportunities young people environment dedicated responsible business working reduce impact environment includes managing climate nature related risks ensure long term success resilience business governments engage governments range topics including environmental social economic governance issues work governments seek solutions mutual concerns positive force wherever business partners work collaboratively partners include suppliers retail third parties non governmental organisations ngos civil society groups explore shared opportunities development innovation drive social environmental improvements communities strive deliver long term sustainable value stakeholders burberry annual report global personal luxury goods market experienced first slowdown nearly years excluding covid related decline estimated total volume billion market declined current exchange rates performance fell short industry forecasts revised downward year overall market driven strong tourism varying regional dynamics however key trends value money purchases shifting consumer preferences continued price increases impacted sector overall performance leading profitability challenges brands suppliers key trends strong tourism tourist spending increased accounted around market middle eastern american tourists gained share travelling particularly europe tourism surpassed pre pandemic levels europe sales generated american tourists achieved three times pre covid levels chinese tourist turnover grew double digits recovering two thirds pre covid levels less attractive destination luxury shoppers due withdrawal tax free shopping strong british pound japan benefited strong tourism particularly first half prices aligned weakening yen compared europe japan attracted aspirational customers fewer transactions smaller average spend largely driven chinese visitors chinese tourism expected grow pressures local market drive consumers abroad value money customers increasingly shifted spending luxury items value oriented purchases often trading non luxury brands trend led declines full price channel stores online conversely value focused channels outlets performed strongly solidifying role key entry points luxury market demand second hand items surged almost doubling size compared particularly hard luxury categories including watches jewellery customers continue focus value market become increasingly competitive growing pressure non luxury brands second hand platforms shrinking yet elevated customer base luxury customer base contracted first time losing approximately million customers compared decline driven aspirational customers gen customers shifting toward value oriented purchases due sustained high prices particularly western markets japan result older generations baby boomers gen gained share alongside top customers accounted approximately market value response brands seeking engage lost customers particularly among younger demographics adding intrinsic value products across price ranges strengthening connection brands dna offering personalisation profitability challenges continued price increases luxury market averaging following significant price elevation previous year discouraged traffic led decline demand particularly soft luxury categories shoes leather goods well watches decline volumes resulted margin cost pressures brands suppliers necessitating effective supply chain management product categories soft luxury product categories declined shoes experienced sharpest decrease declining demand within category hampered continued price elevation increasing competition sports outdoor brands leather goods declined top customers timeless pieces sustained category customers selective purchases small leather goods performed well among gen shoppers sales bolstered rising demand hyper personalisation sales apparel resilient category aside beauty eyewear jewellery came flat performance supported top price items shift toward minimalist understated designs strategic report global luxury market global luxury market burberry operates global personal luxury market presence across countries territories worldwide following analysis recent global market trends performance calendar year ending december refers number countries territories burberry store presence ships directly via partners since end luxury market faced even greater uncertainty driven evolving geopolitical dynamics ongoing economic headwinds refers covid related market decline volume decreased estimated billion billion excluding downturn marked first slowdown since growth rates current exchange refer compared unless stated otherwise burberry annual report source bain altagamma luxury goods worldwide market study edition channels across luxury market monobrand stores reported decline notable drop traffic volumes partially offset improved store conversion rates outlet channel sales grew due consumers growing preference purchases perceive delivering value money online channels saw decline however reflected rebalancing trend following swings caused covid pandemic wholesale also declined travel retail recorded solid growth thanks acceleration tourism strong performance beauty eyewear regions asia mainland china luxury market contracted driven macroeconomic challenges dampened domestic spending lag impact stimulus measures japan best performing country region growing year attributed strong increase tourism favourable yen exchange rate particularly first half growth rest asia modest south korea benefited increased tourism local consumption remained weak hong kong china macau china southeast asian markets suffered lack chinese customers limited intra regional tourism americas luxury market americas flat following decline usa delivered sequential improvement green shoots emerging despite fluctuating consumer confidence market performance supported top tier luxury shoppers aspirational customers focused spending value oriented purchases foot traffic key cities slowed travel especially europe increased outside usa canada negatively impacted ongoing slowdown tourism mainland china latin america reported growth driven increased tourism mexico europe including middle east europe luxury market grew compared driven international tourism surpassed pre pandemic levels largely supported middle eastern american mainland chinese visitors although latter yet fully return pre covid spending levels holiday destinations italy spain benefited central europe faced challenges due limited numbers luxury oriented tourists picture varied across middle east mature markets including united arab emirates maintaining robust growth areas experiencing demand normalisation burberry annual report brand timeless british luxury strategic report business update business update first half challenging business moved quickly away core offer difficult luxury market period significant underperformance november introduced burberry forward strategic plan reignite brand desire improve performance drive long term value following pages highlight actions taken year across key strategic pillars launched several campaigns activations brought brand identity life unveiled dedicated campaign rocking horse bag may featuring brand ambassadors bright jun hyun tang wei furthered connection outdoors winter campaign shot lake district england evoked feeling warmth protection also offered glimpse craftsmanship artisanal excellence behind enduring house codes heritage trench car coats burberry check cashmere scarf made series november introduced burberry forward strategy pivoting timeless british luxury highlighting british heritage history innovation alongside beloved brand codes timeless british luxury brand expression allows capitalise strengths communicate customers consistent meaningful way given lead times business able impact marketing first advance product store experience among first changes highlight heritage well britishness storytelling part placed greater emphasis iconic product brand signifiers including burberry check rather less familiar brand codes introduced recent years always burberry weather campaign first activation brought timeless british luxury life campaign reintroduced warmer spirit uniquely british wit celebrating iconic outerwear shapes including trench quilt aviator puffer duffle star cast festive season released wrapped burberry content series featuring couples friends families around globe joyfully celebrating holidays burberry also shared stories captured burberry unique spirit burberry portraits series showcasing customers cultural icons including dame joanna lumley richard grant personal connections brand followed london love summer campaign second chapter always burberry weather february campaign highlighted trench coat serendipity getting caught london rain falling love winter show represented first fashion show fully conceived part timeless british luxury brand expression contrast modern venues recent shows presented winter runway show tate britain continuing longstanding commitment british arts culture inspired weekend exodus london splendour british country house show featured parade iconic british outerwear silhouettes luxurious fabrications met positive response press consumers collection land september accompanied dedicated campaign priorities deliver consistent brand storytelling uniquely burberry uniquely british campaigns leverage brand codes deepen immersion popular culture strengthen cultural relevance partnerships highgrove tate britain reinforce category authority across campaigns activations burberry annual report always burberry weather campaign celebrates outerwear showcasing timeless narrative recognisably burberry quintessentially british campaign title draws slogan archives highlights purpose functionality clothes protection unpredictable british weather set backdrop british countryside iconic landmarks first phase campaign featured talent including olivia colman brand ambassador barry keoghan england footballer eberechi eze launched october encompassing celebration including cinematic vignettes global pop ups window displays store activations second phase campaign always burberry weather london love launched february showcased summer collection designed transition seasons heroed outerwear offer campaign inspired late early british romantic comedies celebrating everyday romances ordinary londoners featured talent including richard grant kate winslet naomi campbell always burberry weather burberry annual report product lead outerwear priorities introduce next generation quilts downs rainwear refresh replenishment styles newness support new handbag lines fuel momentum began year product weighted seasonal fashion insufficient emphasis core outerwear categories core customer segments since evolved assortments niche modern look timeless aesthetic broader universal appeal among luxury customers second half year introduced greater discipline branding across product categories placing stronger emphasis instantly identifiable burberry branding designs including iconic heritage trench burberry check ekd outerwear expanded product families beyond rainwear including quilts cashmere coats highlighted breadth offer always burberry weather campaign softs particularly scarves continue hero category burberry year increased storytelling boosted visibility scarves across customer touchpoints launched online virtual scarf try feature burberry com allowing showcase breadth offer lightweight silk scarves wool cashmere options various colours styles building heritage innovation first luxury brand develop new products biotech start spiber inc introduced blended scarf using innovative new material called brewed protein lab grown fibre produced fermentation plant based renewable ingredients extended offer capes natural adjacency heritage core offer outerwear scarves well received customers also introduced elevated luxury fabrics treatments outerwear capes across categories realigned pricing reflect category authority introduced good better best pricing positions within luxury context across categories including ready wear leather goods shoes also evolved approach branding expressed subtle overt ways connect broader range luxury customers first half year launched burberry classics collection featured bold check jackets matching trousers shoes contrast introduced subtle check trims jersey ready wear knitwear handbags shoes later year embraced broad array luxury consumers autumn winter collections shown runway showroom february first designed timeless british luxury brand expression new approach price balance branding collections arrive stores september strategic report business update burberry annual report distribution align distribution product customer strategy priorities roll scarf bars pilot trench destinations amplify key wholesale activations continuing optimise network elevate outlet higher average unit retail continue update commerce styling broader appeal improve functionality drive conversion taken swift action reflect evolved product customer strategy across distribution network reasserting authority core categories adapting approach styling across channels aim broaden burberry appeal reach wider luxury audience stores increased product density introduced mannequins support cross selling categories gave prominence core category outerwear front stores window displays reflect timeless british luxury campaigns highlighting core products alongside seasonal fashion looking ahead introducing designated trench destinations elevate storytelling showcase heritage iconic pieces also roll scarf bars stores presence prominent locations key luxury markets remains strength continue enhance retail network newly refurbished new york city store east street reopened november launch prototype scarf bar store exclusive made order service castleford trench coat available leather suede store opening event attended guests including cher tyra banks cara delevingne key new refurbished store openings included sanlitun beijing marina bay sands singapore post street san francisco time reviewed network outlets closed two outlet locations burberry com refined storytelling embody timeless british luxury rebalancing offer commercial options also updated product styling universal appeal evolved language introduced visual filters make easier customers find products burberry annual report people reignite high performance culture enhanced cross functional collaboration support strategic priorities worked pace rekindle creative commercial alchemy strengthen link product merchandising design marketing teams result beginning see agile effective decision making product planning marketing initiatives maintaining open dialogue people essential fostering open inclusive culture august launched heard listening strategy comprised annual engagement survey pulse survey increased number employee listening forums based feedback leaders take actions teams across functions following engagement survey executive committee agreed introduce new decision making principles processes strengthen accountability ensure right capabilities data driven decision making create value scale strengthen leadership team welcomed number new senior appointments including jonathan kiman chief marketing officer laura dubin wander regional president americas paul price chief product merchandising planning officer announced appointment charlotte baldwin chief information officer ensure leaders visible engaged accountable increased frequency interactions people leadership team including regular cadence global town hall meetings priorities implement customer focused organisational structures agile ways working roll new clienteling capability organise growth strategic report business update burberry annual report burberry annual report strategic report key performance indicators financial measures revenue growth measures appeal burberry brand customers sales channels performance revenue constant exchange rates declined year comparable sales growth measures growth productivity existing stores calculated annual percentage increase sales retail stores open months adjusted permanent closures refurbishments includes digital revenue performance comparable store sales declined year cer adjusted operating profit growth measure tracks ongoing operating profitability reflects combination revenue growth cost management performance adjusted operating profit year reduction constant exchange rates measured cer revenue growth measured cer comparable store sales growth measured cer adjusted operating profit growth constant exchange rates adjusted week details alternative performance measures shown pages page adjusted group roic flat burberry annual report adjusted operating profit margin measures drive operational leverage disciplined cost control thoughtful investment future growth building long term value brand performance adjusted operating margin year adjusted diluted eps growth growth adjusted diluted eps reflects increase profitability business movement tax rate share repurchase accretion performance adjusted diluted eps loss per share year decrease adjusted group roic adjusted group roic measures efficient use capital investments calculated post tax adjusted group operating profit divided average adjusted operating assets period performance adjusted group roic decreased year due decrease net operating profit tax measured adjusted operating profit margin measured adjusted diluted eps growth measured adjusted group roic burberry annual report strategic report financial review financial review summary income statement period ended weeks ended march weeks ended march yoy change reported yoy change cer revenue cost sales gross profit gross margin bps bps adjusted net operating expenses net opex sales bps bps adjusted operating profit adjusted operating margin bps bps adjusting operating items operating loss profit operating margin bps net finance expense loss profit taxation taxation non controlling interest attributable loss profit adjusted profit taxation adjusted diluted eps pence diluted eps pence weighted average number diluted ordinary shares millions excludes adjusting items items adjusting operating items reported basis unless otherwise stated group incurred attributable loss weeks march effect dilutive shares antidilutive therefore included calculation diluted loss per share period detail see note financial statements financial performance year included challenging first half revenue constant exchange rates second half group moved pace implement burberry forward strategic plan reignite brand desire improve performance drive long term value creation improved second half meant revenue performance declined full year constant exchange rates offset adjusted operating loss made first half year adjusted operating profit full year metrics commentary financial review exclude adjusting items unless stated otherwise alternative performance measures presented section include cer adjusted loss profit measures comparable sales free cash flow cash conversion adjusted ebitda net debt definitions alternative performance measures pages revenue revenue million constant exchange rates reported exchange rates retail store comparable sales gross margin gross margin reduction bps constant exchange rates bps reported exchange rates reduction primarily due action taken year reverse inventory overhang discounting product recognising charge inventory provisions adjusted operating profit adjusted operating profit million reduction constant exchange rate reported exchange rates adjusted net operating expenses constant exchange rates compared prior year reported exchange rates reported operating loss year million million adjusting items charge relating restructuring expenses burberry forward transformation programme burberry annual report financial performance revenue revenue channel period ended million weeks ended march weeks ended march yoy change reported yoy change cer retail comparable store sales growth wholesale licensing revenue comparable store sales fell contribution space leading decline retail sales constant exchange rates decline reported rates asia pacific comparable store sales declined mainland china declined year south korea fell year japan remained growth year boosted tourist spend mainly chinese customers south asia pacific declined year emeia comparable store sales declined growth local customers partially offset decline tourist spending business home market continues seriously impacted withdrawal vat refunds overseas visitors made least competitive destination europe tourist shopping americas comparable store sales fell year globally americas customer line regional performance comparable store analysis product outerwear scarves continued perform better group average year ready wear performed broadly line group average year leather goods lagged group average year store footprint opened stores year closed directly operated stores march store portfolio directly operated stores franchise stores stores con cessions outlets total march additions closures march store portfolio region march directly operated stores franchise stores stores con cessions outlets total asia pacific emeia americas total excludes impact pop stores wholesale wholesale revenue declined constant exchange rates reported exchange rates result strategic review partners well challenging consumer demand environment burberry annual report strategic report financial review licensing licensing revenue grew constant exchange rates reported exchange rates driven continued strength fragrance operating loss profit analysis adjusted operating profit adjusted operating profit million adjusted operating margin gross margin declined bps constant exchange rates bps reported exchange rates driven mostly inventory exit address overhang actions delivered gross inventory constant exchange rates reported exchange rates march adjusted net operating expenses reduced constant exchange rates reported exchange rates driven tight cost control alongside reduction variable costs delivered million structural savings organisational efficiency programme initiated year foreign exchange headwind impacting adjusted operating profit million adjusting items period ended million weeks ended march weeks ended march restructuring costs total adjusting items restructuring costs million nil incurred arising primarily result burberry forward transformation programme initiated period costs principally related redundancies consulting costs recorded operating expenses net finance charge net finance charge year million million includes interest lease liabilities million net financing charge million increase year primarily due additional million borrowings year adjusted loss profit tax adjusted net finance expense million million adjusted loss tax million adjusted profit tax million taxation group adjusted effective tax rate reported effective tax rate reduction reported tax rate versus driven reduced profitability causing routine disallowed expenses prior year adjustments greater impact cash flow leverage summary statement cash flows following table representation cash flows excluding financing cash flows align definition free cash flow period ended million weeks ended march weeks ended march adjusted operating profit depreciation amortisation working capital including adjusting items cash generated operating activities payment lease principal related cash flows capital expenditure proceeds disposal non current assets interest tax free cash flow free cash flow million year million major components cash generated operating activities decreased million million due primarily million reduction adjusted operating profit partially offset working capital inflow million million outflow driven lower inventory levels capital expenditure million million million store network reduced compared prior year net interest paid increased million million million due additional borrowings year lower average cash balances throughout year tax paid reduced million million million reflecting lower profitability burberry annual report final dividend million paid year however dividend payments suspended july order maintain strong balance sheet enable investment burberry long term growth cash net overdrafts march million march million march borrowings million million bond raised year addition existing million sustainability bond maturing september resulted net debt million lease liabilities million march net cash million lease liabilities net debt period million march million net debt adjusted ebitda increase leverage march driven lower profitability leverage temporarily elevated group focusing returning normalised level organically actions taken rebuild profitability group existing million revolving credit facility rcf well million rcf entered year remain undrawn period ended million weeks ended march weeks ended march adjusted ebitda cash net overdrafts bond lease debt net debt net debt adjusted ebitda organising growth heart burberry forward commitment restoring culture creative commercial alchemy rigorously focused customer plan underpinned step change productivity simplification financial discipline proposing implement organisational changes aimed enhancing collaboration across business increasing agility driving efficiency profitability protecting investment consumer facing areas reimagining burberry way ensure organisation fit future demanding dynamic global market expect proposed changes unlock additional million savings enabling continue fund biggest growth opportunities incremental previously announced million cost savings programme bringing expected combined annualised savings million expect proposed incremental savings come operating expenses increased efficiency spend procurement real estate reduction people related costs associated one costs across programmes largely cash expected total around million million exceptional cost balance outlook positioning brand return sustainable profitable growth remain confident strategic plan improve performance drive long term value creation focus year ahead build early progress made reigniting brand desire also deliver margin improvement alongside continued focus simplification productivity cash flow context still uncertain external environment expect retail space broadly stable capital expenditure around million expect wholesale revenue decline mid teens percentage first half progress burberry forward expect restructuring charge around million deliver around million annualised cost savings million delivered based foreign exchange rates effective may impact year year exchange rate movements expected million headwind revenue million headwind adjusted operating profit burberry annual report strategic report financial review alternative performance measures alternative performance measures apms non gaap measures board uses following apms describe group financial performance internal budgeting performance monitoring management remuneration target setting external reporting purposes apm description purpose gaap measure reconciled constant exchange rates cer measure removes effect changes exchange rates compared prior period constant exchange rate incorporates impact movement exchange rates translation overseas subsidiaries results also foreign currency procurement sales group supply chain results reported rates comparable sales year year change sales stores trading equivalent time periods measured constant foreign exchange rates also includes online sales measure used strip impact permanent store openings closings closures relating refurbishments allowing comparison equivalent store performance prior period retail revenue period ended yoy weeks ended march weeks ended march comparable sales change space cer retail retail revenue adjusted profit adjusted profit measures presented provide additional consideration underlying performance group ongoing business measures remove impact items excluded provide consistent comparable view performance reported profit reconciliation reported profit tax adjusted profit tax group accounting policy adjusted profit tax set financial statements free cash flow free cash flow defined net cash generated operating activities less capital expenditure plus cash inflows disposal fixed assets including cash outflows lease principal payments lease related items net cash generated operating activities period ended weeks ended march weeks ended march net cash generated operating activities capex lease principal related cash flows proceeds disposal non current assets free cash flow cash conversion cash conversion defined free cash flow pre tax adjusted loss profit tax provides measure group effectiveness converting profit cash net cash generated operating activities period ended weeks ended march weeks ended march free cash flow tax paid free cash flow tax adjusted loss profit tax cash conversion burberry annual report apm description purpose gaap measure reconciled net debt net debt defined lease liability recognised balance sheet plus borrowings less cash net overdrafts cash net overdrafts period ended march march cash net overdrafts lease liability borrowings net debt adjusted ebitda adjusted ebitda defined operating loss profit excluding adjusting operating items depreciation impairment property plant equipment depreciation impairment right use assets amortisation impairment intangible assets depreciation amortisation impairment included adjusting operating items double counted adjusted ebitda shown calculation net debt ebitda leverage ratios period ended weeks ended march weeks ended march operating loss profit adjusting operating items amortisation impairment intangible assets depreciation impairment property plant equipment depreciation impairment right use assets adjusted ebitda definition adjusted ebitda updated reflect exclusion impairment right use non current assets income statement impact included within adjusted operating loss profit prior change adjusted ebitda million weeks ended march burberry annual report strategic report capital allocation framework capital allocation framework strategy targets governed capital allocation framework use prioritise use cash framework addresses investment needs business dividend payments additional returns shareholders framework also seeks maintain appropriate capital structure business strong balance sheet investment grade credit rating capital allocation principles remain unchanged given current trading environment short term taking prudent approach conserve cash secure liquidity support business burberry forward transformation temporary implications application framework including declaring dividend respect keeping future capital returns review intend return paying dividend soon possible net debt adjusted earnings interest taxes depreciation amortisation adjusted ebitda rolling month period target range continue cash generative business comfortable current leverage position consistent policy maintain investment grade credit rating deliver sustainable profitable growth drive cash flow strategic plan confident organically lever business target range time diagram summarises key priorities framework reinvest organic growth capital spend across store portfolio including new spaces refurbishments infrastructure including digital supply chain spend includes investment environmental social governance initiatives progressive dividend policy subject capital available reinvested organic growth second priority payment dividend absolute amount dividend per share remain stable increase full year basis broadly targeting pay around adjusted earnings per share reported rates exchange interim dividend pay would typically absolute value prior year full year dividend inorganic strategic investment third priority capital allocation investment acquisitions complement business activities expected infrequent return excess cash shareholders allocation capital first three priorities framework excess cash would returned shareholders determination excess cash based leverage range considering future cash generation external environment maintain strong balance sheet investment grade credit rating review principal risks group relevant financial parameters historical projected including liquidity net debt measures covering balance sheet strength risks financial parameters considered board assessing viability group set pages capital structure metrics cash net overdrafts lease liability borrowings net debt net debt ebitda burberry annual report strategic report people culture people culture introduction global organisation operating countries territories well positioned leverage diverse talents perspectives people create exceptional luxury products experiences customers around world brand rich heritage innovation inspires colleagues continue push boundaries endeavour lead luxury market section outlines supporting people drive burberry forward also details actions taking cultivate colleague growth belonging ensure people realise full potential people greatest asset strive foster environment ideas creativity flourish colleagues thrive building purpose creativity opens spaces values open caring creatively driven forward thinking proud heritage encourage creative minds different backgrounds come together collaborate innovate excel reigniting high performance culture key success burberry forward creating culture allows fully mobilise creativity talent people roadmap achieving four pillars organising growth authentic leadership talent centre purpose belonging burberry annual report strategic report people culture reignite high performance culture focused organising growth streamlining operating model bringing clarity roles demonstrating authentic leadership enhancing decision making capabilities supporting colleagues professional development purpose values also aim build greater connections brand people colleagues feel fulfilled work inspired perform best organising growth focus organising growth clear organisational structures defined roles responsibilities provide foundation high performance culture reviewed structure business implement agile organisation colleagues clarity roles expectations need deliver throughout burberry modelling customer centricity bringing decision making processes closer customer modelled ceo joshua schulman chose replace chief commercial officer instead realigned regional presidents report directly rekindle creative commercial alchemy also actively strengthened cross collaboration product merchandising design marketing teams enabled reuniting london based colleagues one roof newly renovated london headquarters horseferry house period organisational change rollout burberry forward ensured colleagues regularly updated increasing cadence global regional functional town halls amplifying leadership communications supported executive committee joshua used events bring colleagues journey refreshed strategy sharing optimism future burberry providing clarity burberry forward means business colleagues authentic leadership cultivating authentic leadership crucial inspiring colleagues enabling deliver burberry forward strategy focus urgency optimism support introduced leading forward comprised two initiatives leaders managers leaders framework launched march three aims bring clarity create connection strive forward designed equip colleagues knowledge skills tools lead clarity inspire confidence drive impactful change framework delivered collaboratively learning events regular meetings online resources series interviews senior leaders peer coaching circles launch leaders framework hosted internal keynote speaker panel discussion focusing power optimism resilience creating high performance culture leaders received practical guidance activate key themes within teams managers new development training line managers announced colleagues due roll comprising virtual skills based learning sessions supported line manager playbook development training designed set consistent experience management colleagues line managers enabling high performance culture talent centre believe continuous growth development key unlocking potential people putting talent centre strategy prioritising opportunities growth building adaptable resilient workforce enabled thrive refreshed talent review performance processes ensure create clear plans colleagues progress within burberry highlighted focus career development within leadership development programmes designed guide burberry leaders pivotal milestones careers including manager senior manager executive level programmes attended colleagues throughout year participants reporting improvements key leadership skills including communication delegation accountability programmes since superseded leaders managers initiatives also evolved suite independent learning materials colleagues launch digital learning platform november provides demand access broad range upskilling resources empowers colleagues every level take ownership learning growth platform allows users create bespoke playlists shared colleagues topics including leadership transformation goal setting end non retail colleagues accessed resources available internal apprenticeship programme continues key development tool colleagues number participants growing past two financial years created collaboration people delivered external training providers programme offers burberry colleagues opportunity diversify skill set choosing complete apprenticeship one disciplines across business colleagues gain qualifications degree level working full time allowing maintain momentum careers time craft path continued support apprentices learning journeys maintained dropout rate well national average january unveiled redesigned burberry careers website offers enhanced user experience simplified application process details benefits opportunities development site illustrates values heritage life burberry existing prospective colleagues alike burberry annual report purpose belonging generate greater sense belonging among colleagues creating moments everyone come together includes increased drumbeat global regional functional town halls focus strategic progress well internal events celebrate key moments brand campaigns runway shows value colleagues voices recognise need provide varied ways share views launched heard listening strategy offer multiple avenues leaders colleagues engage open honest dialogue part strategy conducted pulse survey august expanded annual engagement survey october enlisting support leaders encourage participation engagement survey achieved completion rate comments reviewed considered members executive committee alongside workforce advisory forum brings together colleagues board members discuss key topics also created employee listening forums offer opportunities direct dialogue employee listening forums attended senior leaders designed identify root causes key issues propose solutions implement sustainable change recognising celebrating diversity colleagues fundamental maintaining culture inclusion belonging read commitment diversity equity inclusion build awareness allyship see page equestrian knight club marked third year internal retail reward recognition programme equestrian knight club ekc established ekc honours outstanding achievements client advisors exemplify thomas burberry entrepreneurial spirit forward thinking mindset setting new standards sales excellence recognising exceptional performance stores customer service reflects ongoing commitment placing talent centre burberry fostering high performance culture across customer touchpoints definitely made confident efficient helping develop strategic thinking make informed decisions also prepared take new challenges internally encouraged put forward promotions available mba apprenticeship graduate burberry annual report sustainability information burberry beyond strategy basis preparation governance management section statement stakeholder engagement value chain open caring company endeavour act responsibly respect environment communities operate employed within business wider supply chain strategic report sustainability burberry sustainability burberry social disclosures workforce occupational health safety people supply chain communities governance business conduct disclosures anti bribery corruption animal welfare tax transparency environmental disclosures climate change chemical management water conservation biodiversity ecosystems resource use circular economy burberry annual report burberry beyond strategy social environmental responsibility key aspect burberry operates business great importance colleagues customers burberry beyond strategy encompasses work respect sustainability related impacts risks opportunities exist within value chain product planet people communities pillars strategy aims strengthen burberry resilience reducing environmental footprint ensuring company behaves responsibly towards planet people communities impact following pages provide detailed information regarding strategic priority including policies actions targets steps taken deliver strategy basis preparation scope data data section based period april march unless otherwise stated avoidance doubt company financial accounting period march march however references indicators included sustainability burberry section pages refer period april march sustainability data covers global operations financial year material changes company operations value chain business activities triggered rebaselining sustainability data publish separate sustainability basis reporting document burberryplc com provides details scope assured data targets well assumptions exclusions apply also added footnotes data tables subsequent pages explain significant estimates assumptions made frameworks legislation section contains climate related financial disclosure consistent task force climate related financial disclosures tcfd pages comply companies strategic report climate related financial disclosure regulations listing rule energy carbon data reported page comply streamlined energy carbon reporting requirements also publish transparency supply chain modern slavery statement burberryplc com annual basis accordance modern slavery act california transparency supply chains act canada fighting forced labour child labour supply chains act australia modern slavery act non financial key performance indicators kpis developed non financial measures assess performance burberry beyond targets progress regularly monitored board details environmental social sustainability activities progress burberry beyond targets see pages group considered non financial reporting requirements sections companies act included details annual report sustainability information thresholds restatements restatements sustainability data clearly indicated reason provided information sustainability data methodologies including greenhouse gas emissions ghg restatement policy found sustainability basis reporting burberryplc com external assurance engaged ernst young llp provide external independent limited assurance statement accordance isae tcfd disclosures specific sustainability data denoted outcomes assurance see practitioner limited assurance report burberryplc com governance management board oversight board responsible ensuring approach sustainability integrated implemented across business governance framework committees advisory forums provides updates key information board ensure make informed decisions outlined corporate governance statement pages detail roles board terms reference committee set matters reserved board decision committees terms reference available corporate governance section burberryplc com reviewing annual budgets board considers sustainability related issues including spend associated burberry beyond strategy capital expenditure relating improving energy efficiency operations colleague bonuses aligned sustainability targets board also responsible overseeing monitoring management risks opportunities including related climate change information risk management approach included risk viability report pages management oversight ceo accountability sustainability performance executive level delegates managerial oversight environmental social responsibility matters corporate responsibility team led vice president corporate responsibility team expertise ranges carbon accounting sustainable raw material sourcing ethical trading corporate responsibility team acts centre excellence guiding execution burberry beyond strategy collaborating teams across business including sustainable finance sustainable information technology legal product supply chain human resources company strategy environment related issues burberry beyond governed sustainability committee convened three times chaired ceo committee plays important decision making role supporting burberry environmental agenda membership including senior leaders across organisation responsible execution strategy within respective business areas topics discussed sustainability committee included future climate related disclosure requirements product sustainability reburberry services board received two updates sustainability committee included progress company sustainability related goals targets board also received update burberry decarbonisation plans disclosures burberry annual report ethics committee oversees company governance strategy relating social agenda including governance human rights risks due diligence supply chain risks identified reported management ethics committee reports directly audit committee ethics committee also oversight community investment work reviews company charitable donations twice year board also receives annual update company community agenda approves budget charitable donations risk committee chaired cfo responsible managing monitoring sustainability related impacts risks opportunities oversight company climate related financial risk disclosures preparations upcoming reporting regulations audit committee also receives updates company preparation upcoming regulatory requirements recommends annual sustainability risk related disclosures approval board board reviews sustainability reporting part overall assessment fair balanced understandable nature annual report knowledge skills burberry seeks ensure board senior leadership relevant knowledge skills help build business successful responsible details regarding board members sustainability skills experience included biographies section pages aim educate colleagues various sustainability related topics frequent engagement communications focused events volunteering opportunities internal communications include weekly fast fact series monthly sustainability newsletter consisting product launches industry news updates learning resources launched choose future climate game designed burberry colleagues burberry colleagues digital tool tailored colleague owned learning experience designed equip teams knowledge need enable sustainability related decision making game introduced across marketing retail functions march first versions available english simplified chinese traditional chinese korean japanese also launched online modern slavery training programme mandatory colleagues supply chain corporate responsibility procurement relevant human resources roles addition provided training around supply chain product development colleagues sustainability topics including product sustainability responsible sourcing burberry beyond strategy beyond digital engagement also connect colleagues person events sustainable product reburberry showcase event invited colleagues learn various burberry sustainability initiatives experience circular services firsthand including cashmere leather refresh services fragrance refills attendees could also meet teams working sustainability including colleagues internal manufacturing team building capabilities across business ensure teams relevant sustainability related knowledge skills support decision making team members involved execution burberry beyond strategy participate external training courses educational events including accounting sustainability academy keep abreast relevant climate nature related topics continue expand sustainability training particular focus developing relevant skills knowledge competencies required colleagues contribute delivery strategy remuneration remuneration executive directors partly linked progress building sustainable future including progress towards group longer term climate goals via annual bonus plan sustainability underpin burberry share plan bsp annual bonus executive directors linked performance strategic objectives linked strategy brand well sustainability targets sustainability underpin bsp award executive directors since linked proportion discretionary annual corporate bonus plan wider workforce achievement sustainability metrics statement sustainability due diligence continued meet prepare current future due diligence legislation line expectations external stakeholders international regulators consumers investors governments cross functional team experts set focus developing aligned approach human rights environmental due diligence builds well established due diligence practices identifying opportunities strengthen integrate processes across social environmental risks impacts enhancing effectiveness overall due diligence framework approach prioritises improving labour conditions creating positive impacts driving efforts address endemic human rights issues advocating sustainable change across industry key stakeholders full details approach available transparency supply chain modern slavery statement available burberryplc com risk management internal controls overarching approach identifying sustainability related risks principal risks detailed pages risk including climate change supply chain impacts risk management framework detailing controls place responsible managing overall risk relevant mitigating controls monitor risks throughout year identify changes principal risk profiles management sustainability related risks distributed throughout organisation depending risk resides example climate related risks relation raw materials supply chain managed raw material procurement team responsible buying materials sustainability related risks assessed existing mitigating activities controls highlighted relevant appropriate additional activities controls implemented risks fall outside risk tolerance progress mitigating activities assessed appropriate committee responsible monitoring associated risk described management oversight section page sustainability related risks opportunities continually monitored part enterprise risk management framework allows evaluate relative significance risks based likelihood impact prioritise accordingly business also developed risk platform enables track business objectives including create protect financial social environmental reputational value also scan new emerging risks keep abreast evolving regulatory requirements strategic report sustainability burberry burberry annual report section statement stakeholder engagement burberry committed listening stakeholders right ensure long term success section statement accordance companies act act directors provide statement describe engaged regard interests key stakeholders performing duty promote success company section act board aware obligations collectively individually promote success company benefit stakeholders making decisions director ensures act way consider good faith would likely promote burberry success benefit members whole regard among matters issues set section factor likely consequences decision long term decisions taken directors aimed ensuring burberry stable viable future directors consider macroeconomic geopolitical factors might impact burberry long term monitor trends global personal luxury goods market identify principal emerging risks might impact business key decisions taken pursue burberry forward transformation programme stabilise burberry financial position demonstrate directors considered consequences decisions support burberry long term information global luxury market found page information principal risks found page information key decisions found page interests employees burberry people whether direct colleagues people supply chain fundamental success business board decisions aimed fostering positive culture burberry values core board decision support burberry forward strategy supports long term future people information people found page information burberry forward pillar reignite high performance culture found page information board engages employees found page fostering company business relationships suppliers customers others customers heart burberry board monitors brand sentiment customer engagement well assessing trading performance luxury goods business supply chain core success burberry seeks promote apply ethical conduct principles business engagement relationships suppliers reports executive management board monitors relationships information customers brand found burberry forward section pages business update section pages information supplier relationships found page impact operations community environment acting responsibly respect environment communities operate key focus burberry information environment communities operate found sustainability burberry section pages maintaining reputation high standards business conduct board periodically reviews approves burberry code conduct key policies aimed upholding highest standards business conduct information business conduct burberry found pages acting fairly members company making decisions board considers outcomes support burberry long term future promote interests company members whole way burberry acts fairly members information board engagement shareholders found page burberry annual report strategic report sustainability burberry ensuring regular comprehensive engagement stakeholders across business helps understand perspectives values mindful maintaining balance competing priorities different stakeholder groups knowledge influences decision making planning management board level allowing deliver strategy conscious potential impact actions matters submitted board approval various areas business required identify stakeholder groups would impacted enables board engage informed discussions reaching key strategic decisions board focus areas key decisions made year set pages stakeholder views taken account engagement outcomes set pages engage stakeholders work partners drive change deliver sustainable value stakeholder engage engage example outcomes engagement customers sell connect customers directly operated stores concessions wholesale partners well via burberry com customers ensure burberry viability business aim inspire excite desirable products exceptional quality provide exemplary customer service seamless omnichannel experience invite explore burberry innovative ways engage customers messaging products marketing campaigns social media company websites global consumer research store events board receives customer insights presentations ceo senior managers well regional presidents board members regularly visit store locations globally attend special events store openings fashion shows board members attended reopening east street store new york summer winter fashion shows london renewed focus outerwear scarves core product categories burberry always burberry weather campaign although early stages transformation evidence positive response customers shareholders group strategy creating long term sustainable value shareholders investing burberry shareholders ensure company ability trade plan future open transparent shareholders business strategy allows make informed decisions engage directly shareholders quarterly trading updates results presentations investor meetings annual general meeting agm board members attend investor meetings results presentations shareholders opportunity engage directly board agm board reviews major shareholder communications receives regular updates matters interest investors non executive directors held meetings investors addition investor meetings executive directors members senior management team investor concerns considered board approving key decisions set page details shareholder engagement found page corporate governance statement burberry annual report stakeholder engage engage example outcomes engagement people want people thrive burberry committed attracting retaining best talent business people creative highly skilled respective fields burberry greatest asset committed development ensuring workforce engaged motivated important driver business supporting wellbeing enhancing skills training representing voices diversity equity inclusion agenda key priorities addition colleague surveys ceo led seven global town halls colleagues global workforce advisory forum waf also provides opportunity non executive directors hear directly employees detail found page results colleague engagement led development reigniting high performance culture pillar burberry forward colleagues shown appreciation increased communication transparency feedback colleagues led greater focus learning development new digital learning platform partners collaborate wide range partners including suppliers companies retail third parties working collaboratively partners allows share knowledge expertise exploring opportunities innovation nurture close relationships members supply chain drive social environmental improvements communities board receives briefings updates engaging partners achieve sustainability targets updates ethical audits across supply chain long term partners support focus core categories driving operational efficiency lowering environmental social impact continue explore opportunities develop products using innovative responsibly sourced raw materials expanding circular business models governments governments wide ranging influence matters impact burberry including long term retail environment employment laws trade environmental social priorities tax business matters engaging governments countries territories operate supports burberry ability perform business endeavour understand concerns raise seek solutions shared environmental social economic governance issues board briefed engagements governments throughout year well key matters including economic trade investment outlook vat workplace regulations evolving environmental climate change regulatory landscape ensure readiness implementation continue communicate governments key issues solutions instance participating round tables providing evidence consultations industry partners communities burberry committed responsible business supporting communities company open caring strive support communities burberry foundation registered charity number flagship burberry inspire programme driving positive change communities helping build sustainable future young people board approves budget charitable donations including burberry foundation board also receives updates burberry supporting communities well opportunities support local projects organisations expanded burberry inspire programme supported launch young leaders programme positively impacts lives young people also provided employee volunteering opportunities connected communities burberry supporting transformation fashion gallery part multi year partnership uniting two icons british culture burberry annual report value chain burberry beyond strategy addresses sustainability related impacts risks opportunities across value chain visual breaks value chain detail strategic report sustainability burberry upstream value chain operations downstream value chain tier tier name tier scope example facility process tier raw material producers extraction production raw semi raw materials raw material extraction agriculture farming mechanical fibre processing example ginning process separating cotton fibres cotton seeds tier raw material processors treatment fibre yarn spinner yarn supplier fibre dyer scourer unfinished leather supplier tier raw material suppliers raw material processes trim supplier fabric supplier finished leather supplier weaver converter tier finished goods suppliers manufacturing finished products factory cutting sewing finishing garment occurs including internal manufacturing tier company managed assets physical sites operated burberry offices retail stores distribution centres hubs local fulfilment centres lfcs retailing distribution distribution marketing purchasing products customers sales channels licensees franchises wholesalers use phase consumer use products customer care end life product end life phase prevent reduce reuse recycle disposal burberry annual report climate change introduction burberry longstanding commitment addressing impacts climate change taking significant steps advance decarbonisation agenda scope emission reduction targets aligned pathway validated science based targets initiative sbti targets support climate related risk mitigation underpin company approach adapting climate change providing framework decarbonisation efforts across value chain section contains climate related financial disclosures consistent task force climate related financial disclosures tcfd recommendations recommended disclosures compliance companies strategic report climate related financial disclosure regulations listing rule since reported four thematic areas governance strategy risk management metrics targets year updated reporting align upcoming reporting regulatory standards stakeholder expectations builds previous reports describes approach scenario analysis results scenario analysis actions taken response results burberry tcfd basis reporting outlines prepared financial statements disclosures considering relevant tcfd guidance publications principles effective disclosure engaged independent practitioners provide limited assurance statement accordance isae tcfd disclosures specific sustainability data denoted results assurance see independent limited assurance report burberry tcfd sustainability basis reporting burberryplc com environmental disclosures burberry heritage deeply connected outdoors delivering environmental commitments key area focus company climate crisis water security biodiversity loss significant challenges faced businesses society large ability address challenges play important role burberry long term success section highlights burberry beyond strategy mitigates risks realises opportunities supports management significant environmental impacts dependencies burberry annual report tcfd index outlining reported key disclosure requirements tcfd recommendations recommended disclosures disclosure location within annual report governance disclose organisation governance around climate related risks opportunities describe board oversight climate related risks opportunities governance management pages describe management role assessing managing climate related risks opportunities strategy disclose actual potential impacts climate related risks opportunities organisation businesses strategy financial planning information material describe climate related risks opportunities organisation identified short medium long term climate change pages action sections climate change pages chemical management page water conservation pages biodiversity ecosystems page resource use circular economy pages describe impact climate related risks opportunities organisation businesses strategy financial planning describe resilience organisation strategy taking consideration different climate related scenarios including lower scenario risk management disclose organisation identifies assesses manages climate related risks describe organisation processes identifying assessing climate related risks risk management internal controls page describe organisation processes managing climate related risks risk viability report pages describe processes identifying assessing managing climate related risks integrated organisation overall risk management metrics targets disclose metrics targets used assess manage relevant climate related risks opportunities information material disclose metrics used organisation assess climate related risks opportunities line strategy risk management process targets sections metrics sections climate change pages chemical management page water conservation pages biodiversity ecosystems pages resource use circular economy pages disclose scope scope appropriate scope ghg emissions related risks describe targets used organisation manage climate related risks opportunities performance targets strategic report sustainability burberry burberry annual report approach strategy climate change identified principal risk burberry potential impact business short medium long term strategy address climate related risks integrated business strategy decision making areas capital allocation investment appraisal supply chain planning raw material sourcing background scenario analysis scenario analysis process identifying assessing potential implications range plausible future states conditions uncertainty scenarios hypothetical constructs designed deliver precise outcomes forecasts instead scenarios provide way business consider future may look certain trends continue certain conditions met assess burberry strategic resilience climate related risk scenario analysis led sustainable finance input supply chain corporate responsibility commercial finance teams across business approach scenario analysis scenario analysis incorporates company financial forecasts operational footprint supply chain information environmental data create digital twin representation business product portfolio modelled based strategy company value chain modelled using historical data information combined industry reference scenarios climate emission pathways including assessments intergovernmental panel climate change international energy agency consider potential impact physical transition risks business physical transition risk modelled independently due complexity uncertainty associated measuring interconnectivity risks influence planned future mitigating actions including deliver ambition net zero taken consideration scenario analysis addition considered risk market shock caused transition low carbon economy would impact company cost debt low carbon innovations would devalue company technology concluded risks significant time due company cash position focus renewable energy consumption absence carbon intensive machinery continue monitor report risks scenarios evaluated impact physical transition risks considered range emission trajectories global average temperatures line recommendations tcfd select set scenarios cover reasonable variety future outcomes favourable unfavourable also included low emissions scenario aligned paris agreement aspiration limit global warming per tcfd recommendation organisations use lower scenario defined alongside summary potential global impact physical transition risks scenarios scenario analysis considers impacts physical transition risks physical risks transition risks definition risks related physical impacts climate change include acute weather events heatwaves chronic long term climate shifts rising sea levels risks may occur transitioning lower carbon economy policy market reputation liability risks level risk depends nature speed transition timing impacts acute physical risks already occurring expected happen often greater severity chronic physical risks likely long term timing transition risks uncertain likely occur short medium term physical risk policy risk market risk reputation risk liability risk burberry annual report strategic report sustainability burberry average global temperature rise compared pre industrial levels scenario description global impact climate related risks time average global temperature rise world takes immediate substantial action line paris agreement lower emissions limit global warming compared pre industrial levels collective global action needed nature speed transition low carbon economy uncertain transition risks likely occur short medium term taking collective action impact physical risks occurring long term may reduced world partially implements policies lower emissions actions taken limited global action taken tackle climate change reduce ghg emissions transition risks would reduce short term however inaction would increase severity frequency physical risks long term world takes limited actions limit emissions without global action transition risks would limited impact physical risks would become even greater long term time horizons considered defined time horizons short term five years medium term five years long term years time horizon used detailed scenario analysis short term outlook five years influence decisions strategy capital allocation costs revenues typically three years used financial operational planning sufficient cover majority approved capital expenditure projects current business development projects completed period viability assessment also aligned time period going concern typically considered months purposes scenario analysis extended period five years using growth assumption closely aligns expected asset lifetimes strategic plans furthermore used detailed five year analysis consider climate related risks may evolve years guide development climate strategy results scenario analysis output scenario analysis considers financial impact climate related risks burberry entails estimating loss value company discounted cash flows next five years assuming mitigating actions taken overall results scenario analysis indicate physical transition risks associated climate change could impact business short medium long term size impact depend nature speed global transition towards lower carbon economy level uncertainty increases beyond five year horizon short medium term scenario would impact burberry considering mitigating actions market risk key driver impact transition risks expected impactful short medium term continuing trends five year scenario analysis identified relate events policies market behaviour either current anticipated come effect near future physical risks expected become impactful long term size impact dependent success global initiatives limit repercussions climate change long term physical risks may disrupt supply chain create operational challenges commitment procure certified responsibly sourced raw materials continued focus innovation key limiting impact remain agile continue monitor risk informed latest scientific understanding climate change also continue consider identify results scenario analysis may utilised inform future strategic planning appropriate burberry annual report physical risk global emissions environment average global temperature rise compared pre industrial levels financial impact medium medium medium timeframe significant impact long term modelled risk quantified extreme weather events chronic changes climate might disrupt manufacturing distribution goods damage assets impact retail activities leading changes consumption patterns also considered chronic changes climate may impact yields key raw materials use potential areas impact increase frequency severity acute weather events may impact raw material sourcing disrupt operations damage facilities facility disruption may result increased risk tropical windstorms floods asia well increased risk droughts heatwaves asia europe americas impact physical risks become significant medium longer term particularly scenarios impact chronic physical risks increasing global temperatures particularly impactful time period key assumptions scenario analysis based current asset base value chain planned changes asset base sourcing locations taken consideration quantifying five year earnings risk considered extent financial impacts may passed consumers assessed line expectations market capacity price increases impact net cash model updated capture broader range uncertainty climate data strategic response identified climate related risks found within actions sections pages indicated risk type icons financial impact potential impact burberry cumulative discounted cash flows five years assuming mitigating actions taken low million million medium million million high million million detailed risk analysis section details approach results scenario analysis modelled risk financial impact reflects estimated loss company discounted cash flows next five years assuming mitigating actions taken impact categorised high medium low reflecting materiality company financial statements adjusted financial impact thresholds ensure severity risk impacts appropriately reflected disclosure burberry annual report market risk global emissions environment average global temperature rise compared pre industrial levels financial impact high medium low timeframe significant impact short medium term modelled risk quantified shifts consumer preferences towards sustainable less carbon intensive goods may impact demand products consumer preference shifts considered country level potential areas impact shift away products constructed using less sustainable raw materials including animal based products towards organic regenerative recycled fabrics shift expected happen short medium term quickly geographical regions public attention sustainable materials used produce clothing greater europe north america shift apparent lower temperature scenario assumes higher proportion consumers adopt sustainable choices key assumptions consumer perception burberry products assumed linked carbon footprint sourcing raw materials production distribution model updated align consumer perception across scenarios year one analysis scenario analysis based burberry product strategy revenues aligned updated strategic vision projected raw material usage considered shifts consumer preferences may impact operating margin net cash assessed line current cost structure strategic report sustainability burberry policy risk global emissions environment average global temperature rise compared pre industrial levels financial impact low low low timeframe significant impact short medium term modelled risk quantified implementation carbon pricing may result increased costs associated production distribution raw materials carbon prices projected changes considered country level potential areas impact increase costs production distribution raw materials short medium term higher carbon price required achieve lower temperature scenario scenario potential minimal positive impact due reversal current carbon pricing policies key assumptions scenario analysis quantification five year earnings risk take consideration actions net zero therefore assumes growth ghg emissions aligned average growth rate used product forecast ghg emissions based assured footprint considered extent financial impacts incurred may passed consumers assessed line expectations market capacity price increases impact net cash global carbon prices used modelling shadow prices measure overall policy intensity expected increase straight line basis period annual carbon price interpolated based final carbon price reached end scenario modelling period global average carbon prices reached end scenario modelling period usd per tonne usd usd per tonne usd per tonne burberry annual report reputation risk global emissions environment average global temperature rise compared pre industrial levels financial impact low low low timeframe significant impact short medium term modelled risk quantified climate activism due negative perception climate impact strategy may result reputational damage disruption spending patterns loss revenue society opinion respect threat climate change considered country level potential areas impact society may engage climate activism short medium term companies perceived less sustainable targeted resulting decreased revenue reduced market share despite minimal shifts consumer preferences short term scenario section society may engage general activism organisations due inaction relation climate change resulting disruption lost revenue key assumptions scenario analysis based burberry product strategy aligned updated strategic vision considered extent financial impacts may passed consumers assessed line expectations market capacity price increases impact net cash scenario analysis uses performance percentile benchmark burberry wider industry terms ghg emissions liability risk global emissions environment average global temperature rise compared pre industrial levels financial impact low low low timeframe significant impact short medium term modelled risk quantified perceptions regarding involvement climate change driving activities sustainability claims failure transition business towards low carbon future could lead increased operating expenses litigation potential areas impact potential operating expenses may arise fines settlements legal costs short medium term key assumptions historical precedents recent climate related litigation trends utilised modelling potential impacts climate change litigation burberry burberry annual report strategic report sustainability burberry opportunities addition climate related risks quantified scenario analysis burberry continues identify act upon climate related opportunities aimed supporting company overarching net zero ambition sustainability committee plays pivotal role identifying prioritising realising climate related opportunities committee receives pertinent opportunities internal teams working environmental agenda evaluated feasibility potential impact well alignment key priorities examples climate related opportunities summarised tcfd opportunity area opportunity description actions taken realise opportunities time horizon impact resource efficiency use efficient production distribution processes work ongoing replace gas boilers internal manufacturing sites efficient electric boilers short medium term work closely brands part corporate water leaders group global network working groups dedicated solving industrial water challenges furthering water stewardship short medium term move efficient buildings improved building efficiency obtaining leed gold certification additional stores breeam excellent certification one additional location making total certified sites since short medium term energy source use lower emission sources energy electricity consume matched equivalent amount renewable generation sourced renewable tariffs energy attribute certificates generated site renewables short term continue monitor real time electricity consumption identify act anomalous consumption patterns significant impact drive energy efficiency across retail sites short term products services development expansion low emission goods services november released exclusive childrenswear capsule made surplus fabric yarns previous collections outerwear pieces featured label room multiple owners write names reinforcing circular theme collection short medium term offer trench cashmere leather refresh services globally continue expand initiatives short medium term corporate responsibility team works closely buying product development teams embed sustainability opportunities seasonal merchandise plans short medium term development new products services research development innovation material innovation team leads identifying developing innovative materials help decarbonise business october launched scarf made blend containing brewed proteintm developed biotech start spiber inc fermented plant based ingredients brewed proteintm lower ghg emissions well reduced water land use compared traditional animal derived materials cashmere short medium term resilience participation renewable energy programmes adoption energy efficiency measures member fashion pact collaborate peers support european suppliers transform energy use facilities european accelerator programme programme focuses improving data collection guidance best practice financing decarbonisation short medium term resource substitutes diversification continue expand traceability programme enable better identify risks opportunities associated raw material supply chains short medium term burberry annual report policies global environmental policy establishes burberry commitment reducing climate related risks preventing minimising potential negative impacts environment along burberry value chain policy applies burberry operations compliance mandatory business associates business associates include individual entity business company associated burberry including supply chain partners carry processing provide goods directly indirectly supplied burberry burberry engages key stakeholders including industry partners government bodies ngos setting implementing policy effectively regular training communication key aspects environmental programmes business associates must appoint senior management responsible compliance ensure subcontractors adhere policy policy made publicly available burberryplc com shared employees contractors new business associates onboarding part contractual compliance obligations ceo executive director board accountable policy implementation oversight burberry ethics committee targets emissions reduction targets aligned pathway validated sbti corporate net zero standard methodology measuring progress towards emissions targets aligned greenhouse gas protocol corporate accounting reporting standard details ghg accounting methodology found sustainability basis reporting burberryplc com actively monitor changes external guidance standards corporate emissions targets bodies sbti iso continue evolve targets required net zero reach net zero ghg emissions across value chain performance continued make meaningful progress towards net zero target sustained reductions across scope ghg emissions approach decarbonisation maximise absolute reductions effective energy efficiency carbon reduction projects compensating residual emissions high integrity certified carbon credits line sbti corporate net zero standard scope across operations commit reducing absolute scope ghg emissions base year maintain year year performance achieved reduction baseline continued progress towards target reflects year year decrease scope emissions achieved reductions gas consumption across several burberry sites warmer winter temperatures energy efficiency measures replacement gas boilers internal manufacturing sites scope across extended supply chain aim reduction scope ghg emissions reduction scope ghg emissions summary response scenario analysis burberry believe long term success depends actively addressing potential impact climate related risks adapting potential opportunities adopted strategies actions mitigate risks ensure strategy adapts potential opportunities actions quantifiable investments associated embedded within board approved financial plans translated annual budgets also considered impact climate change preparation financial statements found page scientific understanding climate change availability data evolves expect greater rigour sophistication approach scenario analysis aim continue developing updating scenario analysis support assessment resilience business strategy climate related risks ensure relevant mitigating strategies place details targets metrics aligned identified climate related risks found within targets metrics sections pages indicated risk type icons burberry annual report strategic report sustainability burberry actions continued focus five key impact areas drive action progress net zero target operational decarbonisation raw materials circularity reducing product related waste supply chain decarbonisation sustainable transportation operational decarbonisation scope emissions reductions approach operational decarbonisation maximise absolute reductions effective energy efficiency carbon reduction projects previously compensated residual scope emissions high integrity certified carbon credits ceased practice focusing instead investments drive absolute reductions maintained progress made previous financial years electricity consumed matched equivalent amount sourced renewable tariffs energy attribute certificates generated site renewables including solar panels installed select sites italy usa conjunction use renewable electricity focused delivering emissions reductions energy efficiency targets place hubs lfcs internal manufacturing sites total energy consumption decreased baseline energy related investments continued manufacturing site keighley including partial removal gas heating alongside window lighting upgrades improve energy efficiency reduce heat loss addition energy audit undertaken manufacturing site italy burberry tecnica identify improvements managing heating cooling systems using temperature boundaries align closely operational timings delivery scope emissions reduction target continues supported ensuring buildings meet high energy efficiency standards obtained leed gold certification additional stores breeam excellent certification one location making total certified sites since raw materials raw materials targets continue progress target key raw materials products certified responsibly sourced defined sustainable raw materials portfolio among benefits across strategy drives carbon intensity products using materials see page details progress date work reduce relative intensity existing materials also investing expanding portfolio exploring innovative alternatives textile innovation textile innovation thomas burberry elevated outerwear performance enhanced ability protect explorers elements today continue create innovative products inspire protect customers introduced scarf made blend containing brewed protein developed biotech start spiber inc fermented plant based ingredients brewed protein lower ghg emissions well reduced water land use compared traditional animal derived materials comprising wool cashmere brewed protein resulting scarf maintained attributes associated burberry products namely luxury quality warmth protection durability targets progress reduction scope emissions since reduction scope emissions since performance target performance scope ghg emissions decreased base year measured science based targets making progress reducing emissions scope performance continues largely determined volume mix products produce product strategy evolves part burberry forward continue undertake targeted interventions address emissions hotspots across value chain ensuring level emissions reductions maintained target year burberry annual report innovation required across stage material life cycle need increased circularity recognised throughout fashion industry example working closely innovation sustainable manufacturing teams identify suitable textile textile recycling solutions participation industry wide life cycle assessment lca studies known warmth performance high quality cashmere used creation iconic scarves better understand impact cashmere scope emissions participating cross industry lca coordinated textile exchange collaboration aim establish scientifically rigorous method assessing environmental impact cashmere production developing practical methodology key ensuring feasibility industry wide applicability details ghg emissions methodology see sustainability basis reporting burberryplc com circularity reducing product related waste minimising excess materials increasing material donations recognise fashion industry shared challenge respect environmental impacts carbon footprint generating excess fabric textile waste engaged colleagues across burberry identify key levers reduce generation excess fabrics exploration involved stakeholders design merchandising product development supply chain finance teams aim improving inventory optimisation identifying efficiencies across value chain result task force established oversee reduction use excess fabrics sponsored chief product merchandising planning officer chief supply chain industrialisation officer continue donate excess materials including textiles leather yarns trims mannequins charities design schools globally donated metres fabric information non stock donations found page promoting circular business models also continue trial new circular business models evolve reburberry range services including aftercare offer help extend life burberry products part commitment circularity efforts critical lever longer term decarbonisation business see pages information circular business models addition details regarding efforts reduce environmental impact packaging found pages supply chain decarbonisation engaging supply chain partners worked tier tier supply chain partners identify decarbonisation opportunities including ways increase energy efficiency transition renewable energy phase fossil fuels engagement able reinforce awareness carbon reduction targets emphasise critical role partners play achieving member fashion pact collaborate peers european accelerator programme programme aim enable informed decision making focus developing harmonised environmental data points covering energy water waste ease increasing reporting burden suppliers also improving access quality primary data brands sustainable transportation reducing transportation logistics emissions focused improving internal tracking measures air freight result targeted interventions reduced proportion goods transported air freight compared continue focus driving costs emissions utilising air freight business travel reductions identified opportunities strengthen travel policy maximise efficiency necessary travel increase visibility sustainability related communications employees point booking saw reduction emissions associated business travel continue working closely new travel partner ensure colleagues recognise carbon impact journeys make informed decisions reflective travel policy burberry annual report strategic report sustainability burberry metrics total scope ghg emissions total scope emissions market based tonnes scope emissions intensity tonnes per sales revenue scope global offshore global offshore global offshore total energy including purchase electricity operation facility combustion fuel facilities vehicles kwh scope combustion fuel operation facilities tonnes scope combustion fuel owned leased transport tonnes scope electricity purchased used operations location based tonnes scope total emissions location based tonnes scope electricity purchased used operations market based tonnes scope total emissions market based tonnes total emissions offset verified emissions reduction certificates tonnes scope intensity location based tonnes per sales revenue energy electricity consumption kwh sourced renewable sources burberry applies operational control approach defining organisational boundaries data reported sites considered burberry ability influence energy management data reported sites burberry physical presence influence energy management sites concession within department store overall emissions inventory reported equates net selling space square footage burberry uses greenhouse gas protocol using location market based approach reporting scope emissions estimate emissions applies conversion factors desnz international energy agency iea according geography material sources emissions reported refrigerant gases deemed material reported market based emissions globally relating purchased electricity within operations scope stated zero due procuring amount renewable electricity equivalent annual consumption ghg emissions data reported based period april march avoidance doubt company financial accounting period march march however references selected metrics included sustainability section burberry annual report refer period april march information methodology found sustainability basis reporting burberryplc com figure used calculate progress scope science based target metric subject external independent limited assurance ernst young llp results assurance see independent limited assurance report burberry sustainability basis reporting burberryplc com burberry annual report energy operations total electricity kwh percentage electricity renewable sources total gas kwh total fuel owned leased transport kwh total energy kwh percentage energy renewable sources energy efficiency energy relative net selling space kwh energy facility type internal manufacturing distribution centres stores offices total energy facilities excluding energy vehicles number stores leed breeam certification renewable sources includes site generation green tariffs energy attribute certificates includes purchase electricity operation facility combustion fuel facilities vehicles accepted certifications leed platinum gold level breeam outstanding excellent level metric subject external independent limited assurance ernst young llp results assurance see independent limited assurance report burberry sustainability basis reporting burberryplc com scope baseline cat purchased goods services cat capital goods cat fuel energy related activities included scope cat upstream transportation distribution cat waste generated operations cat business travel cat employee commuting cat downstream transportation distribution cat end life treatment sold products cat franchises scope total scope total upstream scope total downstream note scope categories included deemed relevant footprint excluded target reporting boundary information methodology found sustainability basis reporting burberryplc com energy supply chain percentage tier supply chain partners using renewable electricity global percentage tier supply chain partners using renewable electricity emeia percentage tier supply chain partners using renewable electricity asia pacific burberry annual report strategic report sustainability burberry chemical management introduction committed eliminating use hazardous chemicals across supply chain supporting fashion industry shift zero discharge hazardous chemicals aim ensure safety people products create time protecting environment implementing best practices pollution management across supply chain section covers response potential pollution impacts arising supply chain activities also addresses work prevent mitigate potential pollution risks including management harmful chemical substances approach chemical management programme ensures safer products reduced exposure supply chain workers communities adjacent supply chain cleaner water air soil environs production sites achieve goal committed implementing monitoring continuously improving chemical management programme use latest guidelines zero discharge hazardous chemicals zdhc roadmap zero burberry chemical management manual burberry product restricted substances list prsl policies global environmental policy outlines commitment eliminate harmful chemicals prevent environmental pollution across supply chain chemical management requirements within global environmental policy regularly reviewed ensure latest guidelines adopted supply chain partners details global environmental policy found page believe promoting safe use chemicals supply chain ensure safer products reduce production related air water soil pollution policy requires partners adhere manufacturing restricted substances list mrsl aligned zdhc mrsl addendum prohibiting perfluoroalkyl polyfluoroalkyl substances pfas additionally committed implementation zdhc supplier zero programme across supply chain ensure best practices chemical management adopted monitor effectiveness drive continuous improvement also committed adopting monitoring disclosing wastewater quality zdhc wastewater guidelines wwg results published annually burberryplc com addition supply chain partners must comply prsl ensures safety products robust testing standards targets eliminate hazardous chemicals goal eliminate use hazardous chemicals across supply chain define annual targets implementation chemical management programme requirements line three key pillars zdhc roadmap zero input process output input targets relate mrsl conformity chemicals used supply chain process targets relate adoption assessment requirements output targets relate conformity effluents zdhc wwg targets apply timings financial year april march seek increase target levels year based progress achieved previous financial year targets defined terms percentage product units delivered partners progress set targets reviewed monthly internally quarterly supply chain partners deviations performance compared defined target escalated business units supply chain partners monthly basis report chemical management performance supply chain collect data related mrsl conformance achievement wastewater test results dedicated zdhc platform performance products delivered tier tier supply chain partners reported chemical inventory conformance mrsl additionally tier tier supply chain partners obtained certification increase compared previous financial year reflecting continuous improvements supply chain chemical management system full detailed breakdown achievements refer metrics section page financial year use compliant chemicals good chemical management practices site resulted high level conformity effluent achieved compliance zdhc wwg mrsl parameters conventional parameters conformity heavy metal requirements zdhc wwg results represent mapped wet processing partners across tier tier performed wastewater testing line zdhc wwg increase compared previous financial year burberry annual report metrics chemical management supply chain partners tier tier tier tier tier tier percentage products delivered partners reported mrsl conformance average mrsl conformance count chemicals percentage products delivered partners assessed zdhc supplier zero programme requirements percentage products delivered suppliers rated level previously named progressive level zdhc supplier zero programme requirements percentage product delivered supply chain partners disclosed wastewater testing per zdhc wwg conformance zdhc wwg mrsl parameters wastewater test reports mrsl detection includes supply chain partners burberry sources directly include apply subcontractors data collection began therefore previous financial years available conformant chemicals listed zdhc platforms chemicals may registered conformance information readily available conformity applies entire facility chemical inventory specific burberry production applies tier supply chain wastewater conformity reflection entire facility discharge specific burberry production actions chemical management programme chemical management programme applicable supply chain partners involved manufacturing products regularly monitor implementation requirements outlined global environmental policy chemical management manual across supply chain includes setting monitoring annual internal external targets also conduct regular awareness sessions chemical management programme ensure internal teams supply chain partners well informed respect objectives implement requirements within defined timelines supply chain partners use chemicals production process required report chemical conformance mrsl least quarterly mandate partners improve chemical conformance provide support identify solutions challenges encountered manufacturing processes collaborate formulators explore alternatives chemicals used manufacturing processes aim finding innovative high performing options augmented safety profiles require supply chain partners assess chemical management systems programme requirements require supply chain wet processing partners perform wastewater testing line zdhc wwg november published annual wastewater testing trend analysis report available burberryplc com report outlines effluent testing carried burberry supply chain partners event non conformity zdhc wwg partners must conduct root cause analysis rca corrective action plan cap prevent reoccurrence capacity building capacity building cornerstone chemical management programme support external stakeholders zdhc chemical formulators solution providers conduct knowledge enhancing sessions supply chain partners assist chemical management journey launched supply chain collaborative learning community enables tier tier partners share best practices addressing common challenges improving chemical management practices additionally require supply chain partners participate zdhc training programmes serve enabler enhancing chemical management performance joint implementation along luxury peers third party suppliers external chemical experts helped shape direction industry chemical management roadmap since active member zdhc chemical management implementation recognised champion fourth consecutive year highest attainable level zdhc brands zero leader programme burberry annual report strategic report sustainability burberry water conservation introduction aim conserve water across operations value chain working supply chain partners promote water stewardship section covers water conservation programme focuses increasing resource efficiency reducing water impacts increasing water resilience manufacturing operations approach water conservation programme expect partners improve overall level water resilience particularly areas high water stress defined areas high high risk water availability adversely impacting ability meet human ecological demand water approach managing water related risks involves mapping tier tier supply chain identify facilities areas high water stress work partners implement water resilience assessment acts roadmap improve water management promoting better understanding water demand driving water efficiency recycling encouraging greater disclosure assessment helps identify potential hotspots sites water management levels disproportionate levels water intensity risk set targets source sustainable certified raw materials including organic recycled significantly reduce water impacts raw material extraction phase information raw material targets found page policies part global environmental policy commit assessing water risk value chain regularly monitor industrial domestic water withdrawal discharge consumption including source destination information also commit reducing water consumption across operations engaging partners water conservation programme supply chain partners required ensure safe water sanitation hygiene facilities times line commitments assess water risk facilities report track water withdrawal discharge details global environmental policy found page targets addressing hotspots supply chain aim zero hotspots target supports commitment ensure supply chain water resilient achieve zero hotspots work closely supply chain partners perform water resilience assessment part water assessment assess three variables basin status risk using water risk filter sites water intensity absolute relative understand dependency potential impact availability partners water management best class practices three variables help identify potential hotspots support water conservation programme also internal targets monitoring level water resilience areas water stress including carrying water assessment supply chain partners considered high high terms physical water risk also set targets respect collection water inventory data related main materials helps identify potential areas improvement support decision making terms innovation performance two facilities identified hotspots among direct partners compared baseline year identified five facilities monitor partners quarterly ensure improvements made change hotspot status actions water withdrawal accounting continued develop water accounting methodology encompass wet processing manufacturing facilities including subcontracted upstream supply chain partners tier tier identification volume water withdrawn manufacture products basis better understand impacts dependencies manage water related risks current focus developing accounting methodology facilities material use water involved manufacturing processes include facilities carrying wet operations dying finishing tanning leather information received updated accounting enable identify facilities operating higher water stress areas support making informed decisions relating water conservation programme targets burberry annual report water assessment direct supply chain partners tier tier tier tier tier tier supply chain coverage green excellent amber red hotspot note figures weighted based percentage product units delivered direct supply chain partners includes supply chain partners burberry sources directly include apply subcontractors capacity building within supply chain products delivered direct tier supply chain partners assessed water conservation framework improved resilience profile annually partner engagement capacity building direct support percentage products delivered partners low levels water resilience red hotspot decreased percentage products delivered partners good levels water resilience green excellent increased partners identified red hotspot action plans requested monitored quarterly basis review status actions ensure progress corporate water leaders members corporate water leaders cwl global network working groups dedicated solving industrial water challenges furthering water stewardship initiative led global water intelligence gwi part textile leather group brings major brands together pave way greater operational resilience environmentally sustainable business practices within industry global supply chain along brands textile leather group developed common water framework outlines key guiding principles fashion industry water leveraging existing tools initiatives framework aims align streamline increasing requirements brands thus reducing reporting burden supply chain extreme weather events mapping started mapping via supplier survey occurrence impact extreme weather events value chain aim raise awareness among stakeholders support strategies help prevent mitigate water related risks raw material sourcing innovation also taking steps mitigate impacts water related risks raw material production phase value chain burberry certified responsibly sourced raw material targets information page aim embed best practice environmental management including minimising water impacts example organic cotton typically requires less water cultivation compared conventional virgin cotton global organic textile standard gots organic cotton standard ocs certifications included sustainable raw materials portfolio help mitigate water impact recognise opportunities lie driving material innovation developing new materials technologies deliver high quality fabrics reduce environmental impact deliver products sustainability benefits example trialled innovative dyeing technology polyester use water technique represents opportunity help mitigate risk water stress replacing conventional dyeing technology burberry annual report strategic report sustainability burberry biodiversity ecosystems introduction committed protecting nature contributing global efforts tackle nature loss ongoing management natural capital requires concerted approach protecting biodiversity ecosystems across value chain section details response managing mitigating nature related impacts within value chain approach meet commitment protect biodiversity ecosystems across value chain continue expand assessment material nature related impacts dependencies risks opportunities line recommendations taskforce nature related financial disclosures tnfd conducted initial biodiversity materiality assessment using materiality screening tool developed science based targets network sbtn allowed identify material economic activities linked commodities associated pressures nature assessment focused pressure categories grouped five nature related issue areas issue areas based drivers nature loss defined intergovernmental science policy platform biodiversity ecosystem services ipbes global assessment land water sea use change resource exploitation climate change pollution invasive alien species allowed conduct detailed assessments using tools wwf biodiversity risk filter increased understanding specific pressures nature status nature ecosystem dependencies related material direct operations manage material nature related impacts dependencies risks opportunities follow sbtn nature action framework framework outlines measures avoid reduce negative impacts biodiversity support restoration regeneration practices state nature recover transform underlying systems address drivers nature loss particular reduce negative impacts biodiversity ensure environmental considerations factored decisions take respect design sourcing manufacture products part product strategy example set target key raw materials products certified responsibly sourced driven sustainable raw materials portfolio available within sustainability basis reporting burberryplc com portfolio sets accepted certification responsible sourcing criteria across raw materials regularly reviewed ensure credible sourcing criteria included policies global environmental policy committed assessing reporting biodiversity impacts dependencies risks opportunities line best practice marketing campaigns activities follow sustainability principles marketing production furthermore require business associates undertake action related biodiversity ecosystem protection including compliance applicable nature protection legislation details global environmental policy found page work raw material sourcing guided responsible raw materials sourcing policy policy available burberryplc com outlines requirements business associates colleagues well commitments ensuring materials sourced responsible way respects human rights minimises negative environmental impacts policy also specifies requirements respect packaging animal welfare testing targets raw materials sourcing key raw materials products certified responsibly sourced defined sustainable raw materials portfolio performance key raw materials products certified responsibly sourced defined sustainable raw materials portfolio financial year six key raw materials cotton synthetics including polyester nylon tpu leather wool feather viscose included scope target representing total volume weight materials within products details target calculation methodology including exclusions found sustainability basis reporting available burberryplc com traceability raw materials traceability key raw materials performance traceability target remains place key enabler burberry beyond strategy leveraging third party traceability tool successfully implemented traceability project cotton wool synthetics key suppliers successfully concluded pilots progressed scaling phase strategic supply chain partners scope metric applies main materials filling composition within specific material either cotton synthetics including polyester nylon thermoplastic polyurethane tpu polyurethane leather wool feather viscose metric subject external independent limited assurance ernst young llp results assurance see independent limited assurance report burberry sustainability basis reporting burberryplc com burberry annual report supporting zero deforestation committed contributing sustainable management natural forests supporting zero deforestation across products supply chain performance progress towards commitment contribute sustainable management natural forests zero deforestation measured performance certified responsibly sourced viscose see metrics section page performance percentage forest stewardship council fsc certified paper based packaging see metrics section page actions managing nature related impacts risks opportunities means implementing actions following approach avoid reduce continue mitigate negative impacts nature managing materials source permit use material listed endangered international union conservation nature natural resources iucn red list threatened species considered endangered within national border individual nation state addition animal plant materials used burberry must sourced compliance cites convention international trade endangered species wild fauna flora monitor closely collaborate procurement teams guide decisions using risk assessment tools highlighted within tnfd guidance reduce negative impacts nature biodiversity continue increase sourcing responsible raw materials including recycled organic materials also supporting regenerative agricultural practices also able minimise water impacts contribute climate change mitigation efforts ensure supply chain resilience future continued refining responsible sourcing criteria ensure align ambition industry best practice see sustainable raw materials portfolio sustainability basis reporting burberryplc com details made progress respect key raw materials maintained certification see metrics section page details maintained leather sourced certified tanneries sourced certified suppliers result engagement suppliers sourcing teams organic cotton also driving force year performance particularly due iconic trench collection included gabardine made organic cotton recycled synthetics also played significant role driven expansion outerwear collection heightened focus performance materials support implementation raw materials targets delivered training nearly colleagues across business including teams involved key stages product development raw material sourcing internal manufacturing processes continue explore developments integrate next generation materials including working italian supplier develop trial use hydroponic cotton cotton grown soil less farming vertical greenhouse resulting high quality cotton produced reduced water usage restore regenerate since burberry partnered pur support responsible wool standard rws certified australian wool farmers adopting regenerative farming practices initiative focuses improving soil health biodiversity pasture resilience enhanced farm management turn provides key learnings work support regenerative principles within sourcing burberry continues support hainan net zero project collaboration department forestry hainan bureau international economic development hainan reform development research foundation initiative dedicated ecological conservation restoration efforts across hainan china particular focus preserving island tropical rainforests mangrove ecosystems diverse habitats past two project years collaboration led significant progress ecological restoration wuzhishan area approximately million square metres tropical rainforest restored meanwhile chengmai county square metres new mangroves planted around million square metres existing mangrove ecosystems restored project third year continue support ecosystem conservation hainan province transform recognise importance collaboration drive coordinated action protect restore nature biodiversity burberry also signatory fashion pact supports objectives focusing actions relating safeguarding planet fashion pact unlock programme support development system create incentives cotton farmers shift lower climate impact cotton farming practices also supported fashion pact work enabling joint action towards deforestation conversion free fashion supply chains collaboration involves identifying fashion relevant areas key deforestation natural ecosystem conversion identification opportunities industry act collectively burberry also became member steering committee nature biodiversity peer group peers organisations aim group connect peers regular meetings enable sharing experiences best practice view opening opportunities collaborative projects burberry annual report strategic report sustainability burberry metrics certified responsibly sourced key raw materials percentage key raw materials products certified responsibly sourced defined sustainable raw materials portfolio percentage certified responsibly sourced cotton percentage certified responsibly sourced synthetics nylon polyester tpu percentage certified responsibly sourced viscose percentage certified responsibly sourced wool percentage leather certified tanneries percentage certified responsibly sourced feather note scope metric applies main materials filling composition within specific material either cotton synthetics polyester nylon tpu leather wool feather viscose materials defined key make total volume weight main materials within products details target calculation methodology including exclusions found sustainability basis reporting available burberryplc com key raw materials percentage product volume cotton synthetics nylon polyester tpu viscose wool leather feather note percentage product volume refers percentage total number products containing commodity main material raw materials certification targets included table means aggregate percentage materials referenced equal product volume tpu excluded feather refers percentage products containing feather filling opposed percentage products feather main materials resource use circular economy introduction circularity minimising environmental social impacts resource use within value chain core part burberry beyond strategy dedicated reducing impacts material product use scaling circular efforts support efforts drive circular economy section details work across circular business models packaging waste circular business approach working create sustainable luxury fashion industry meet changing consumer expectations burberry products expertly crafted using materials highest quality designed last innovations circular business models expanding reburberry services aim keep products materials use longer targets embed circular business models continue evolve aftercare offer trial new circular business models performance end stores across countries territories offered one reburberry aftercare services products repaired refreshed using services year year year decrease result changes calculation methodology resulted personalisation services longer counted aftercare services detailed breakdown reburberry aftercare services see page also expanded rental resale initiatives continued remake trials see details actions section page metric subject external independent limited assurance ernst young llp results assurance see independent limited assurance report burberry sustainability basis reporting burberryplc com burberry annual report actions reburberry aftercare services reburberry aftercare services help extend life products expanded aftercare services sneaker refresh shoe repair trench reproofing canvas cleaning leather repair across four new geographies united arab emirates canada italy taiwan area china addition launched rewaxing repairs expanded scarf refresh service include new fibre blends also onboarded new service vendors support aftercare service network rental year continued exploring alternative ways customers experience products including rental partnerships adapted product offerings continued rental subscription partnership cocoon bag rental also launched new rental partnership luxury fashion marketplace hurr focuses renting iconic products selection womenswear pieces including trench coats cashmere scarves resale continued partnership global luxury resale platform vestiaire collective usa burberry vestiaire collective platform customers trade women outerwear ready wear shoes handbags well men outerwear exchange burberry gift card used store online pre loved burberry pieces available purchase globally vestiaire collective remake expanded cashmere upcycle service launched usa mainland china enabling customers repair burberry cashmere scarf custom embroidery darning service helps extend life product time giving bespoke finish also reinforced commitment supporting circular economy exclusive childrenswear capsule made using excess raw materials creative partnerships education launched first reimagining materials competition partnership london college fashion centre sustainable fashion competition reinforces burberry focus circularity design using surplus materials challenged students repurpose materials creative innovative way providing opportunity gain first hand experience managing real industry brief students applied selected nine finalists one winner winning student awarded cash prize internship burberry trench restored continue celebrate iconic trench coat look new innovative ways bring trench life customers trench restored initiative sources trench coats pre one carefully authenticated repaired cleaned reproofed burberry factory castleford yorkshire collectable pieces feature proudly restored burberry neck chain come custom designed packaging including numbered swing ticket hosted trench pop within isetan department store shinjuku tokyo restored trenches available purchase also launched reburberry pop selfridges london celebrating shared commitment circularity space offered customers chance discover repair resell customisation services explore second hand archive pieces including selection restored trenches burberry annual report strategic report sustainability burberry packaging approach managing use plastic key reducing environmental impacts associated products operations maintained plastic free consumer packaging committed exploring lower impact alternatives across new packaging developments also aim eliminate unnecessary plastics operational packaging increase use fully recycled materials track monitor origin timber products used packaging aim ensure packaging fsc certified fsc certification provides globally recognised standard responsible forest management mitigating deforestation risks supporting circular economy working support circular economy aftercare services circular business models members circular fashion innovation network cfin industry led programme steered british fashion council bfc fashion textile ukft supports guides creation circular fashion ecosystem part contributed cfin interim report one year convening listening testing contributed industry led extended producer responsibility epr sandbox project support ukft bfc british retail consortium brc project resulted industry backed white paper launched ukft sustainability conference london paper key findings emphasised need government action enable circular economy create variable epr textile scheme works metrics reburberry aftercare services number stores offering one aftercare services number countries territories stores offering one aftercare services number stores offering repair services number stores offering refresh services total number products repaired using aftercare offer total number products refreshed using aftercare offer breakdown number products repaired using aftercare offer trench coats leather outerwear ready wear scarves footwear prior year data comparable following update calculation methodology excludes personalisation services categories included therefore data previous years available policies global environmental policy provides detailed guidance packaging suppliers sustainable manufacturing practices regarding chemical water usage well nature protection legislation deforestation regulation details global environmental policy found page addition responsible sourcing policy outlines requirements value chain partners commitments responsible raw materials sourcing including materials used business consumer business business packaging responsible raw materials sourcing policy also includes commitment protecting endangered species habitats ancient forests endangered forests areas known illegal logging excluding outlet consumer packaging part efforts minimise waste deplete existing stock previous branded oak pistachio packaging utilise existing stock global outlet stores burberry annual report metrics packaging percentage plastic packaging made minimum recycled plastic percentage paper based packaging procured fsc certified note order calculate percentages recycled content fsc certified paper based packaging relied accuracy information supplied packaging manufacturers directly managed nominated burberry regarding packaging sold burberry figures based total spend scope packaging packaging made entirely least weight plastic paper materials reported percentage plastic packaging made minimum recycled plastic increased kpi threshold recycled plastic content minimum minimum therefore previously reported data updated reflect new threshold targets consumer packaging eliminate plastic consumer packaging eliminate plastic packaging eliminate unnecessary plastics used operational packaging maximise recycled content least plastic made fully recycled content performance part packaging rebrand removed plastic consumer packaging continued use plastic free alternatives paper based packaging widely recyclable paper based packaging procured fsc certified increased kpi threshold plastic packaging recycled content minimum recycled content resulted plastic packaging made minimum recycled content addition cotton used consumer packaging made minimum recycled content actions regulatory preparation focused efforts preparing upcoming regulations including ecodesign sustainable products regulation espr included creating packaging material impact matrix inform future packaging developments reducing weight packaging without jeopardising quality functionality excluding outlet consumer packaging part efforts minimise waste deplete existing stock previous branded oak pistachio packaging utilise existing stock global outlet stores consumer packaging reduce resource use linked seasonality replaced seasonal check box wraps standard cotton ribbon made recycled cotton continue offer pared back consumer packaging option digital consumers selecting signature gift wrapping burberry annual report strategic report sustainability burberry waste management approach committed minimising resource use reducing waste across operations supply chain line waste hierarchy gives priority waste prevention followed reuse recycling finally disposal preferred approach avoid waste created designing planning circularity mind waste still occurs aim maximise proportion sent reuse recycling policies global environmental policy sets commitment minimise resource use reduce waste across operations supply chain line waste hierarchy policy also commits quantifying tracking publicly reporting waste management progress details global environmental policy found page actions operational waste minimise reduce waste across operations diverted operational waste landfill average recycling rate operations compared continue implement waste segregation within operations minimising contamination within waste streams maximising volume reused recycled line burberry waste hierarchy nearly five tonnes plastic polybags hangers sites recycled new polybags hangers part ongoing closed loop project external partner teams returned refurbished horseferry house head office london part efforts improve office waste segregation promote recycling among colleagues increased number bin types available implemented clearer signage sites aligns locations department environment food rural affairs new business waste regulation operational waste consists dry mixed recycling cardboard plastic paper confidential paper general waste organic waste glass wood metal leftover materials non stock waste continue champion sustainability principles reduce overall impact marketing events visual merchandising gifting key component sustainability principles detailed guidance extending life materials possible aligned waste hierarchy prioritise internal reuse possible including giving props second life example decreased window rotations iconic store windows initiative aims eliminate unnecessary set builds reduce resource use store fixtures expanded initiative stores stores globally promote internal reuse visual merchandising across store network client events continue foster creativity within local communities donations props furniture materials established partnership immersive theatre company punchdrunk ltd donations square metres bespoke lilac carpets previously used shows following harrods takeover february donated metres fabric rope reloved revolution creative manufacturing initiative working partnership people experienced homelessness upcycle materials furniture also introduced new volunteering concept colleagues longstanding partner onside youth focus fostering circular design principles donated materials plinths decorative sculptures flooring roofing upholstery samples legacy youth zone onside west london burberry store design challenge challenge saw young people design pitch store concept panel judges guided volunteer mentors burberry architecture team participants gained hands experience applying design principles architectural concepts retail spaces winning team receiving trip sloane street store information colleague volunteering programmes found pages burberry annual report metrics operational waste percentage operational waste diverted landfill percentage average recycling rate operations note operational waste consists dry mixed recycling cardboard plastic paper confidential paper general waste organic waste glass wood metal leftover materials scope metric covers key italy operations comprising burberry internal manufacturing facilities distribution centre northern england burberry head office burberry office leeds retail stores burberry manufacturing site distribution centres italy well burberry distribution centres vineland shanghai manufacturing established waste management programme supply chain partners focusing reducing production waste including production losses cuts defective material reevaluating waste cannot avoided waste programme focuses following priority areas reduction first priority prevent minimise waste manufacturing enhancing material utilisation efficiency performed case study analyse root causes inefficiencies processes find opportunities optimising current processes exploring technologies capable improving manufacturing efficiencies revaluing waste cannot prevented seek opportunities repurpose highest possible level waste hierarchy involves transforming manufacturing waste valuable resources example working closely internal innovation team identify suitable textile textile recycling solutions mindset shift aim drive zero waste culture among internal external stakeholders raising awareness waste impact connection resources also aim enhance processes improve material utilisation efficiency explore revaluation opportunities includes training programmes supply chain partners manufacturing waste tier total textile waste tonnes textile waste diverted disposal tonnes note data previous financial years comparable due updates data collection calculation methodology metrics textile waste refers production related textile leather waste waste diverted disposal refers production waste prepared reuse recycling textile donations metres fabric donated includes donations variety global non profit organisations including bfc leeds beckett university progetto quid burberry annual report strategic report sustainability burberry social disclosures workforce introduction purpose creativity opens spaces articulates core belief guided burberry since founded imagination innovation ingenuity push boundaries open new opportunities customers communities purpose supported values open caring creatively driven forward thinking proud heritage values intrinsic burberry express best underpinning culture values help ensure working burberry means entering inclusive space perspectives shared freely creativity encouraged employee development wellbeing prioritised approach year transformation approach people defined burberry forward strategy objectives organise growth strengthen leadership ensure talent centre efforts help colleague feel connected purpose diversity equity inclusion remains essential fulfilling purpose believe attracting diverse talent fostering inclusive culture communities feel sense belonging enables greater creativity innovation increased collaboration improved business performance people direct colleagues supply chain heart business operations respect uphold human rights wherever operate work enhance wellbeing workers supply chain dedicated initiatives section highlights commitment diversity equity inclusion initiatives safeguard health human rights wellbeing people also enable make positive impact society burberry annual report accountability participation benchmarks including ftse women leaders review voluntary disclosure ethnicity data annual gender pay gap reporting pillar builds commitment transparency drive greater data disclosure governance engagement building suite learning tools pillar continues diversity equity inclusion learning journey global colleagues consolidate groups one global equity council systems alongside anytime feedback platform partnerships organisations including outsiders perspective business disability forum pillar focuses leverage partnerships better support representation inclusion continue enact strategy recognise importance continually listening colleagues ensuring aware views world around prominent colleague customer base asia launched dedicated asia council comprising colleagues across continent council focus share scope insights matters region diversity equity inclusion perspective explore evolve strategy better support local needs cultural nuances mind also continued work closely global network employee resource groups ergs raise awareness champion inclusion well cultural advisory council garner insights offer external lens initiatives building awareness allyship alongside diversity equity inclusion training actively cultivate opportunities throughout year raise awareness among colleagues encourage critical thinking promote allyship believe authentic inclusive culture fostered people enabled lead conversations issues matter colleagues hosted number events discussions around key topics calendar moments including disability december celebrated international day persons disabilities hosting talk yasmin sheikh founder director diverse matters renowned disability advocate talk discussed importance disability inclusion business meaning disability beyond stereotypes medical versus social models disability ethnicity black history month invited colleagues across business participate conversation event explore importance representation reclaiming narratives empowering also hosted virtual book club celebrate black authors power storytelling gender part international women day celebrations hosted webinar invest uplift others wellness expert clare kenny exploring live alignment matters sharing practical tools protect mental wellbeing international men day hosted conversation event vice president reward cultural advisory council member hussain manawer discuss men mental health champions men actively participate educating young people healthy masculinity policies people focused policies procedures aligned commitment open caring employer assist supporting colleagues throughout career burberry code conduct supports commitment outlining key policies processes behaviours colleagues must adhere following local laws regulations available languages code enables people make informed ethical sustainable decisions acts daily guide colleagues partners behave interact one another included within code burberry confidential policy protects colleagues external parties providing independent method speaking serious concerns available countries territories present legally permitted burberry confidential global helpline available online well via telephone believe fostering inclusive culture enables better support people creative everything policies support global diversity equity inclusion policy sets global standards ensure creating culture minimises barriers creates moments colleagues feel represented listened celebrated throughout business make reasonable adjustments people disabilities including colleagues become disabled throughout career burberry ensure online materials policies processes inclusive people visible non visible disabilities example support fair objective performance management provide training guidance line managers emphasises evaluating colleagues based skills capability demonstrated performance also continue work external organisations including business disability forum ensure people disabilities equally considered expanded guidance sexual harassment clarify look use reporting mechanisms global parental leave policy offers weeks paid leave employees months continuous service regardless gender policy applicable colleagues responsibility care child including biological mother father adoptive parent guardian step parent similarly bereavement leave policy supports bereaved parents including foster adoptive intended parents pregnancy loss loss child commitment diversity equity inclusion diversity equity inclusion strategy underscores commitment living burberry values underpinned belief everyone burberry responsible bringing commitment life listening valuing amplifying voices colleagues around world ensure burberry reflects rich diversity people customers communities fosters culture true inclusion belonging principles diversity equity inclusion strategy woven global colleague journey fostering open inclusive culture investing global education programmes encourage people curious challenge behaviours focused strategy three key areas burberry annual report strategic report sustainability burberry lgbtqia celebrate pride month organised colleague led panel lived experiences support people different sexual orientations throughout year also invited range external speakers discuss experiences inclusivity allyship included dave wilkin founder talent development platform ten thousand coffees jacqui rhule dagher founder legally lesbians jerome yau ceo aids concern founder hong kong marriage equality growing inclusive talent pipelines believe collective strength lies diversity backgrounds experiences continue review recruitment process ensure fair impartial addition using tools like gender decoders diversity data monitoring standardised interview forms also continue deliver interviewing impact programme supports hiring managers best practice interviewing decision making inclusive talent acquisition processes supported range talent partnership sponsorship programmes help ensure individuals underrepresented minority ethnic backgrounds given access career opportunities burberry programmes include creative arts scholarships central saint martins london stepping stones bursary prize partnership brit school ongoing partnership outsiders perspective burberry inspire programme helps young people across globe build better futures addition programmes also continue nurture talent supporting institutions globally burberry insights days surplus material donations recent example includes burberry saturday club partnership british fashion council non profit organisation national saturday club see information commitment fair equitable pay practices burberry committed paying colleagues equally work equal value providing colleagues across organisation competitive total reward part reward reviews regularly undertake pay analysis ensure meet commitment pay colleagues line level experience competitive fair market rate also proud first luxury retailer manufacturer achieve accreditation real living wage employer living wage foundation dedicated promotion real living wage within operations april implemented pay increase recommended real living wage increase gender ethnicity pay gap reporting since line regulations reported gender pay gap figures annually employee population makes third global workforce also voluntarily reported ethnicity pay gap figures fourth consecutive year reflecting commitment transparency creating lasting change continually monitoring progress gender ethnicity pay gaps distinct equal pay comparison pay men women carrying equivalent roles reported median gender pay gap mean gender pay gap median ethnicity pay gap mean ethnicity pay gap strive impact pay gaps positively continue focus efforts creating opportunities development well monitoring progress support industry reports benchmarks includes ftse women leaders review recognised burberry seventh consecutive year top performer women leadership investing ethnicity maturity matrix rated level star employer commitment creating inclusive equitable workplace burberry saturday club march burberry held first masterclass partnership british fashion council national saturday club non profit organisation focus engaging young people disadvantaged backgrounds underrepresented communities masterclasses aim develop skills encourage creativity provide insight future career pathways fashion business saturday club hosted london college fashion burberry textile design team spoke young people aged day day responsibilities textile designer well role wider creative process global luxury brand replicate textile design process young people set group based activity called work collaboratively create mood board exploring set theme burberry masterclass one series events saw british fashion council connect national saturday club industry professionals help inform young people education choices rewarding career pathways initiative aim embolden young people become next generation innovators imaginative thinkers burberry annual report metrics workforce total employee headcount direct operations percentage employee headcount significant operating location emeia americas asia pacific percentage employee headcount business function consumer design enabling retail supply chain percentage employee headcount age category years old years old years old employee engagement score points points points note data march function provides essential support services activities keep burberry core business running smoothly efficiently including finance human resources legal facilities management engagement score derived colleague listening surveys conducted microsoft viva glint platform based two key questions reflects average voluntary responses annual employee engagement survey ran october reduction score compared prior year reflects challenges faced first half however following launch burberry forward strategy november continued measure engagement found general colleagues showed increasing levels optimism fiscal year progressed information methodology found sustainability basis reporting burberryplc com workforce gender workforce female male junior managers female male senior managers female male leadership director female male executive committee female male note data march senior managers defined companies act strategic report directors report regulations information methodology found sustainability basis reporting burberryplc com metric subject external independent limited assurance ernst young llp results assurance see independent limited assurance report burberry sustainability basis reporting burberryplc com burberry annual report strategic report sustainability burberry supporting inclusion percentage employees completing episodes online diversity equity inclusion learning journey episode mitigating bias episode allyship episode microaggressions intersectionality episode online diversity equity inclusion learning journey launched therefore applicable previous financial years increasing representation shortlists across recruitment campaigns female male values based candidates choose voluntarily disclose occupational health safety introduction safety first mindset global health safety team aims ensure wellbeing employees customers contractors visit locations implementing measures prevent accidents injuries ill health involves proactively identifying potential hazards assessing risks implementing effective control measures support teams across global operations committees communications training internal management standards empower colleagues support health safety wellbeing aligning burberry internal standards local legal requirements place work approach aligned industry best practice adopt plan check act approach managing health safety burberry plan plan health safety considerations global activities set commitments health safety statement intent within global health safety policy targets place continuously risk assess order improve health safety standards across operations put health safety risk reduction plans action mitigate eliminate hazards using hierarchy controls includes training employees implementing new safety procedures making necessary changes equipment processes preparing emergencies check continuously evaluate performance health safety measures determine whether effective aligned established policies objectives goals involves tracking incident reports conducting audits safety inspections collecting data safety metrics act depending outcome evaluations take proactive actions improve non compliance safety standards correcting unsafe conditions rectifying procedural deficiencies incidents occur investigation process incorporates root cause analysis identify underlying causes issues policies committed providing safe healthy environment colleagues customers anyone visits works burberry premises global health safety policy details key processes involved ensuring maintain highest standards health safety throughout global operations policy reviewed key stakeholders renewed annual basis contains overarching statement intent signed endorsed ceo policy publicly available burberryplc com well internal intranet displayed noticeboards locations accessible employees targets burberry sets annual health safety objectives internal targets supported safety management system programmes aimed continually improving performance strive ensure maintain safe healthy environment employees customers visit work premises burberry annual report actions continuous improvements global health safety team global health safety team continued support operational areas proactive advice achievable solutions help global teams across corporate retail supply chain team supported business effective risk reduction strategies respect enabling creative vision health wellbeing health safety team played supporting role helping drive global wellbeing strategy ground level team led focus mental health support strengthening partnerships around mental health education wellbeing support teams globally working partnership internal functions support colleagues visitors contractors customers health agenda delivered across five working pillars wellbeing mental health ergonomics occupational health assistive technology training governance communications health safety management system updated refined refreshed health safety policies standards related operations activities relaunched global health safety policy several languages continued review add new management standards suite guidance documents standards cover health safety topics including health safety management chemical management fire emergency planning training development health safety training remains key focus area company developed new interactive business relevant training content specific colleague roles though training needs assessment tna tool set objectives deliver training classroom digital targeted content support enable teams confidently manage drive high health safety standards across business areas health safety essentials training module mandatory training requirement colleagues globally classroom courses delivered attendees equates hours training delivered global health safety team continues remain date latest developments occupational health safety global assurance audit programme partnership external partners completed unannounced health safety assurance audits across global business areas part global assurance audit programme every year review update republish audit protocol align trends changes safety developments including collaborating departments incorporating diversity equity inclusion sustainability information targeted risk reduction fire safety emergency planning health safety team continued prioritise fire safety management area importance ongoing focus emphasis remained embedding global minimum standards education programmes prevent fire safety issues reduce gaap fire findings additionally continued set targeted training relation emergency preparedness retail locations completing training third party accreditation partnering commercial procurement function global health safety team launched contractor accreditation project across europe middle east americas addresses risks related ongoing monitoring due diligence higher risk third party suppliers required carry works burberry managed environments scope new process cover contractors providing burberry maintenance facilities cleaning visual merchandise construction security activities evolving organisation global supply chain health safety team continued evolve globally consistent health safety supply chain strategy burberry managed locations appropriate evaluated performance local fulfilment centres particularly burberry employees located events campaigns brand moments throughout financial year health safety team built collaborations internal colleagues external specialist support ensure safe delivery global brand moments including two runway shows burberry annual report strategic report sustainability burberry people supply chain introduction commitment supporting people wellbeing extends across value chain core agenda respecting upholding human rights combating risk modern slavery increasing transparency throughout supply chain collaborate across sector partners external experts protect nurture luxury craftsmanship traditional techniques approach identify material human rights impacts risks opportunities conduct human rights impact assessment hria operations activities extended supply chain every two years implemented process continue evolve develop due diligence approach detailed page well ethical trading programme recent impact assessment identified four key areas human rights violations likely identified across finished goods vendors raw materials suppliers working living conditions including access health services worker voice specific providing remedy diversity equity inclusion modern slavery including migrant worker recruitment journeys implemented several mitigation actions focused areas detailed pages policies code conduct guides actions supports partners make informed ethical sustainable decisions developed line commitments experience many years code includes ethical trading code conduct human rights policy sets standards protect rights workers across supply chain well policies aim protect vulnerable workers migrant worker policy child labour young worker policy policies within code conduct underpinned ethical trading initiative base code international bill human rights fundamental conventions international labour organization review policies latest best practice guidelines emerging regulatory requirements update needed seek apply code conduct business associates include limited raw material suppliers finished goods suppliers subcontractors supporting facilities non stock suppliers construction contractors licensees franchisees compliance code conduct condition working burberry whether directly indirectly policies made publicly available burberryplc com shared new business associates onboarding available colleagues via burberry world internal colleague intranet targets advance ethical trading supply chain continue ensure responsible sourcing standards audit requirements upheld partners across supply chain applies finished goods vendors key raw material suppliers performance financial year site social compliance audits carried across tier supply chain among tier supply chain partners either audited remained scope recent audit vendor ownership programme vop expanded four new partners place partners globally addition pilot due diligence initiative manages risks associated migrant workers support external consultants seen encouraging results also strengthened accountability processes support internal teams make responsible sourcing decisions assist managing risks across supply chain enhance supply chain engagement continue implement supply chain engagement programmes advance wellbeing livelihoods inclusivity worker voice across supply chain performance continued make significant progress enhancing expanding social impact programmes including expanding worker wellbeing programme new supply chain partners launching grievance mechanism emeia tier supply chain partners available approximately workers actions continued implement actions focusing key impact risk areas across operations supply chain working conditions ethical trading programme financial year continued implement robust auditing compliance programmes effectively identify manage mitigate potential violations code conduct metric subject external independent limited assurance ernst young llp results assurance see independent limited assurance report burberry sustainability basis reporting burberryplc com burberry annual report material based production volumes value length relationship burberry example inadequate training around health safety inadequate fire safety management supply chain partners selected based volumes value length relationship ensures programme addresses risk within majority tier supply chain emeia target material tier suppliers audited ethical trading standards tier suppliers either audited remained scope recent audit supply chain partners identified critical business critical findings managed line critical procedure analyse audit findings global scale understand focus remediation social impact programmes financial year main areas non conformance standards across audits conducted related health safety working hours continue work partners identify root cause issues implement actions address prevent non compliance require supply chain partners implement corrective action plan make progress meet ethical trading standards information ethical trading programme found modern slavery transparency supply chain statement burberryplc com one area focus risk mitigation potential risks associated migrant workers small number partners italy employ migrant workers implemented reinforced due diligence process assess remediate prevent instances actual potential negative impacts workers approach includes extensive assessment conducted unannounced basis supply chain partner operating procedures spanning working rights employment practices fiscal due diligence internal due diligence review burberry purchasing practices identify connections sourcing policies non conformities identified audit programme action plans tailored supply chain partner support capacity address prevent negative impacts partners assessed identified non conformities around working hours issued action plans working remediating impacts observed reassessed quarter following initial assessment validate improvements vendor ownership programme vendor ownership programme vop core element prevent risk supply chain vop provides key supply chain partners support develop run due diligence programme within extended supply chains line standards vop supports efforts uphold ethical standards actively works prevent modern slavery risks partners continued engagement along extensive support training regular audits focused human rights well health safety conducted vop partners certain cases third party auditors using ethical trading code conduct guide based results audit improvement action plans developed shared partners supply chain turn bridge gaps identified worker grievance mechanisms ensure employees workers supply chain access confidential support advice burberry confidential global grievance mechanism available stakeholders including key rightsholder groups employees supply chain workers communities customers expanded burberry confidential launched online hotline workers emeia region initiative disseminated across tier suppliers starting early also sponsor confidential hotlines run ngos workers asia pacific apac supply chain provide advice workers rights wellbeing well confidential support throughout year together ngo partner continued conduct awareness raising sessions promote use confidential hotlines supply chain workers highlighting benefits services provided approximately complaint calls addressed remaining cases still addressed suppliers support ngo grievance resolution regularly monitored corporate responsibility team human rights supply chain training training supply chain partners understand identify mitigate manage modern slavery risks key component ethical trading programme suppliers receive training onboarding ensure strong understanding importance transparency social compliance audits critical issues continued collaboration international organization migration iom broadening global programme training modern slavery cover country specific risks facing migrant workers fair ethical recruitment employer responsibilities migrant workers risks integration migrant workers training reached supply chain partners across countries territories impacted approximately workers internal colleague training worked external learning developer create online modern slavery training programme allowed designate form training mandatory key teams including supply chain product development corporate responsibility human resources new approach internal training meant able provide vital training much larger group internal employees financial year employees completed training burberry annual report strategic report sustainability burberry equal treatment opportunities migrant workers part continued risk prevention efforts extended collaboration iom develop pilot project raise awareness fair ethical management migrant workers aimed build capacities tier partners internal manufacturing facilities italy effectively manage migrant worker recruitment employment practices well meeting standards set migrant worker policy worker wellbeing programme tier suppliers participated worker wellbeing programme reaching workers supply chain programme aims identify hidden risks proactive worker engagement additionally intended educate suppliers ways enhance worker wellbeing foster higher employee satisfaction support talent attraction retention engage stakeholders inform response actions including launching surveys measure worker wellbeing meeting supply chain partners identify opportunities improvement formulating site specific action plans performance achieved participating suppliers follows high satisfaction high satisfaction acceptable satisfaction low low satisfaction health programme extended health programme new supply chain partners across asia month period supply chain workers participated programme received approximately two hours training ensure training effective relevant workers participating collaborate supply chain partners medical practitioners conducting training determine health topics covered four broad training modules women health men health general health mental health focus topics reproductive health cancer awareness nutrition metrics people supply chain number tier supply chain partners number total workforce tier supply chain percentage female workers tier supply chain percentage male workers tier supply chain percentage tier production sites covered national industrial collective bargaining agreements refers number workers employed facilities finished goods supply chain social compliance audits assessments number site social compliance audits carried year full audit site follow audit site number desktop social compliance assessments carried year percentage tier supply chain partners social compliance audit remained scope previous audit percentage tier supply chain partners meet ethical trading standards breakdown tier supply chain partners social compliance audit performance critical major minor excellent note data denoted due changes scope calculation methodology taking place previous years data therefore applicable decrease number site audits conducted compared previous financial year due transition risk based approach managing human rights modern slavery risks began details approach found page finished goods supply chain partners identified critical business critical findings managed line critical procedure main areas non conformance standards related health safety working hours continue work partners identify root cause issues implement actions address prevent details found transparency supply chain modern slavery statement available burberryplc com grading refers accepted pre approved audit confirmed responses aggregated converted score ranging determines overall level satisfaction different score ranges structured follows high satisfaction high satisfaction acceptable satisfaction low satisfaction low satisfaction metric subject external independent limited assurance ernst young llp results assurance see independent limited assurance report burberry sustainability basis reporting burberryplc com burberry annual report human rights training number colleagues sourcing procurement human resources teams receive training human rights number supply chain partners participating iom training number workers impacted iom training vendor ownership programme number tier supply chain partners involved vop number subcontractors reached vop number workers reached vop percentage tier supply chain partners emeia involved vop worker hotlines number calls burberry sponsored worker hotlines number complaints number consulting requests number psychological support requests number factories covered hotlines number workers covered hotlines factories include finished goods vendors subcontractors supporting facilities licensees raw materials suppliers health programme number supply chain workers impacted health programme note data denoted due kpi collected time period first reported year first year data became available wellbeing programme number tier supply chain partners participating wellbeing programme number tier supply chain workers covered wellbeing programme burberry annual report communities introduction strive right thing customers communities world around continue founder legacy supporting young people championing communities collaborating organisations make positive impact since committed giving least profit tax pbt annually charitable causes including amounts donated burberry foundation registered charity number established burberry foundation governed separate entity operates independently burberry group plc follows regulations laws applicable charitable organisations burberry foundation board four trustees meets quarterly chaired christopher holmes baron holmes richmond mbe approach contributions directed towards advancing communities strategy ensuring meaningful impact sustainable progress core focus area improving lives young people today billion young people aged making largest generation history set make global workforce believe supporting young people early age particularly experienced challenging circumstances crucial preventing youth unemployment associated long term effects mental health also building positive future global communities economy focusing geographic locations operations reach support charitable initiatives inspire young people come together safe environments explore creativity develop life skills broaden career horizons burberry inspire programme implements creative youth development cyd framework commitment respecting diversity young people lived experiences valuing perspectives elevating authentic voices supporting creative development expression approach youth development recognises creativity takes different forms example young people may demonstrate creative spark painting music theatre dance others may express areas relating science technology engineering mathematics stem drawing insights cyd framework burberry inspire channels power creativity cultivate young people self confidence mental health wellbeing sense identity belonging aspirations future programme theory change revolves around engaging nurturing young people creativity providing well designed opportunities growth learning empowering contribute positively communities burberry colleagues receive three volunteer days per year access internal volunteering platform connects charitable organisations opportunities within local communities facilitating volunteering fundraising opportunities colleagues allows positively impact wellbeing supporting communities operate colleagues volunteer time causes particularly meaningful aligned burberry communities strategy approach means positively impact local global communities policies community investment policy procedures sets approach community investment charitable donations humanitarian aid employee volunteering fundraising community investment methodology aligns business societal impact framework policy extends burberry group plc operations including wholly majority owned subsidiaries believe implementing policy consistently across operations make significant lasting impact communities burberry corporate responsibility team ethics committee oversee govern implementation policy policy available staff via burberry world internal colleague intranet targets inspire young people create better futures positively impact people particularly young people hailing served communities performance financial year people positively impacted community programmes supported burberry group plc burberry foundation achievement adds cumulative total people since exceeding target increase volunteering opportunities colleagues burberry colleagues engage volunteering fundraising activities performance burberry colleagues actively engaged volunteering fundraising activities increase compared colleagues engaged world health organization adolescent health www int accessed march positively impacted refers number people directly reached community programmes line business societal impact framework includes individuals directly participate benefit initiatives training mentoring access resources services metric subject external independent limited assurance ernst young llp results assurance see independent limited assurance report burberry sustainability basis reporting burberryplc com strategic report sustainability burberry burberry annual report burberry inspire programme global reach international youth foundation global partner onside save children poland girls inc new york city new york edge heart los angeles community youth center san francisco csv milano florence italy future youth foundation south korea girl scouts japan funded burberry foundation funded burberry hong kong youth arts foundation brit school castleford tigers foundation outward bound trust shanghai youth development foundation china soong ching ling foundation haja center south korea actions expanding burberry inspire burberry inspire global flagship programme dedicated providing safe spaces young people explore creativity develop new skills build positive future focus young people underserved communities aged burberry inspire brings youth focused activities conducted burberry foundation burberry group plc together single identity burberry group plc partnerships focus school programmes burberry foundation community based youth organisations network partnerships nine regions across world initiative impact global local levels burberry inspire offers skills development variety fields creative arts design sports stem related activities entrepreneurship initiatives aimed breaking educational barriers programme ambition create opportunities young people unlocking creativity driving positive change lives well communities burberry inspire programme introduced two new partners italy haja center south korea expansion broadened programme reach positively impacting young people bringing total number partners inspiring young leaders also introduced first cohort young leaders part newly launched young leaders programme ensure diversity young people lived experiences perspectives remains core burberry inspire programming developed initiative bring together young leaders amplify voices address social issues local communities comprised young change makers nine burberry inspire partners around world initiative designed develop next generation leaders offering unique development opportunities fostering greater confidence self expression programme involved series weekly skills workshops learning sessions work experience round table discussions support development young leader provide insight passions transformed meaningful careers participants matched burberry mentors mentors guided throughout programme helped navigate next steps workforce initiative also provided valuable volunteering opportunity burberry employees allowing engage deeply programme contribute impact young leaders programme continue annually throughout duration burberry inspire programme burberry annual report showcasing creativity burberry inspire august burberry foundation hosted first burberry inspire showcase bringing together young people across united kingdom celebration collaboration creativity hosted burberry inspire partner onside burberry business services office leeds event saw young people onside youth zones present project worked within last year unveiling arts mural performance scene oliver demonstration burberry inspire kit car project presentation anti knife crime lifestyle apparel brand showcase highlighted transformative impact burberry inspire programme developing design camps future youth south korea support burberry inspire future youth fyf developed design camps introduce young people creative problem solving hands opportunities build sustainable design models interactive workshops specifically developed introduce participants new concepts encourage see creators fyf focuses young people rural communities creative opportunities readily available neighbouring cities fyf year one programme results showed young people made significant gains creativity self expression including one young person shared enjoyed freedom create whatever wanted without set constraints activity elevate essence girls inc new york city march supported burberry inspire partner girls inc new york city annual conference named elevate essence conference brings together young women schools across new york city day activities centred mental health wellness host burberry volunteers including vice president human resources vice president marketing communications joined support day events part welcome cheer squad helping activity stations workshops mainstage educational presentations empowering colleagues volunteering burberry offer colleagues three paid volunteering days year give back causes care volunteering highlight included colleagues coming together ahead festive season support two burberry inspire partners wearing festive jumpers aid save children annual christmas jumper day colleagues orchestrated wrapped burberry gift drive support national youth charity onside using array items donated corporate teams gifts wrapped hand festive packaging distributed youth zones across london leeds ensuring young people something special open christmas strategic report sustainability burberry burberry annual report metrics positively impacted number people positively impacted community programmes supported burberry group plc burberry foundation number people positively impacted cumulatively community programmes supported burberry group plc burberry foundation since positively impacted refers number people directly reached community programmes line business societal impact framework includes individuals directly participate benefit initiatives training mentoring access resources services figure may align financial year contribution certain partners burberry reports impact year impact reports received partners colleague volunteering percentage colleagues actively engaged volunteering fundraising activities number volunteering fundraising projects supported burberry colleagues total number volunteering hours number charities supported volunteering match funding kind donations note prior year data comparable result change data collection methodology following launch new volunteering platform figure excludes colleague headcount volunteering platform subject data restrictions including mainland china united arab emirates except dubai metric subject external independent limited assurance ernst young llp results assurance see independent limited assurance report burberry sustainability basis reporting burberryplc com burberry annual report strategic report sustainability burberry governance business conduct disclosures commitment responsible business drives forward supports long term success people company ethical practices embedded ways working mitigate risks reduce potential negative impacts associated operating business everyone working burberry expected adhere code conduct section describes company approach key ethical business conduct topics including anti bribery corruption animal welfare tax transparency key ethical business conduct topics covered within relevant sections including social environmental statements lays policies processes behaviours third parties associated burberry must comply ensure acting accordance values right stakeholders details policies processes found code conduct burberry annual report anti bribery corruption introduction burberry open caring organisation value underpinned desire responsible strive right thing people customers communities world around complying applicable laws regulations right thing embedded company culture adhere support international efforts combat bribery corruption accordance united nations convention corruption including bribery act failure comply applicable anti bribery anti corruption laws whether burberry directly within wider operations could expose legal liabilities financial penalties reputational damage loss stakeholder trust approach anti bribery anti corruption policy place ensure integrity direct indirect business operations compliance policy mandatory employees contractors third parties associated burberry policy shared onboarding process part mandatory employee training committed investigating reports concerns promptly thoroughly independently objectively multiple channels concerns raised including via line management asset profit protection human resources burberry confidential used employees contractors business associates reports handled accordance burberry confidential whistleblowing policy available burberryplc com open culture high standards accountability ethical behaviour zero tolerance retaliation concerns raised policies anti bribery anti corruption policy outlines steps taken prevent bribery corruption connection burberry explains bribery corruption facilitation payments sets obligations business associates details burberry expectations respect gifts hospitality burberry general counsel responsible implementing policy policy made available employees contractors third party business associates times via burberryplc com share copy policy third party business associates part onboarding process require contractual assurances comply policy condition working policy also made available burberry employees part mandatory annual anti bribery anti corruption training covers content policy actions responsible business principles sent responsible business principles letters key vendors dispatched every two years letters serve reminders vendors regarding business practices burberry code conduct gifts hospitality policy update amended gifts hospitality policy relation client engagement gifting revising parameters around frequency new approach provides narrower focus designed lead impactful gifting client engagement teams burberry annual report animal welfare introduction burberry deeply committed principles practices require animals supply chain treated care respect believes animal welfare utmost importance approach capture maintenance breeding raising transportation handling animals must undertaken observing highest animal welfare standards compliance applicable local animal welfare social environmental laws burberry defined specific sourcing requirements animal based materials identified certification programmes promote ethical farming practices enhance supply chain transparency burberry ban use real fur exotic skins policies respect animal welfare responsible raw materials sourcing policy outlines requirements value chain partners colleagues well commitments responsible raw materials sourcing policy available burberryplc com also outlines requirements respect packaging animal welfare testing beauty licensee coty publishes animal testing policy program available coty com actions raw materials target progress made good progresses journey achieving target key raw materials certified responsibly sourced defined sustainable raw materials portfolio available within sustainability basis reporting burberryplc com portfolio based certification programmes sourcing criteria promote ethical farming practices enhance supply chain transparency industry collaboration burberry also part textile exchange animal welfare working group aims create strategies propose approaches setting long term material commitments achieve industry change tax transparency introduction global luxury retailer wholesaler manufacturer operating retail locations worldwide take environmental social corporate governance responsibilities seriously tax strategy enables fulfil responsibilities respect applicable taxes approach burberry committed acting integrity transparency tax matters complying fully applicable tax laws regard international standards guidance tax practice tax reporting group engage responsible tax planning aligned genuine commercial economic activities use tax structures undertake artificial transactions sole purpose create contrived tax result example participate transactions parties based tax jurisdictions transactions ordinary course group trading business could perceived artificially transferring value low tax jurisdictions strive ensure tax filings accurate submitted timely basis discover inadvertent errors tax returns correspondence tax authorities disclose promptly vice president tax global tax trade compliance teams regular communication revenue customs hmrc customer compliance manager specialist hmrc teams promote professional collaborative working relationship burberry low tolerance tax risk proactively engages advisors achieve certainty tax position group processes policies governance designed identify mitigate material tax risks complex ever changing international tax environment national regulatory developments changes way business mean always element tax risk uncertainty inherent group operations end formalised tax risk identification measurement monitoring reporting processes manage risks ensure appropriate mitigation steps taken significant tax risks progress mitigating actions reported regularly audit committee burberry seeks engage open constructive dialogue hmrc tax authorities territories operate policies group tax strategy directs tax planning reporting compliance activities aligned group strategic objectives information regarding group tax strategy found burberryplc com actions total taxes borne collected globally group amounted million group headquartered significant operations burberry paid business taxes million collected million taxes behalf exchequer paid million plastic packaging tax environmental taxes information found total tax contribution section burberryplc com strategic report sustainability burberry burberry annual report strategic report non financial sustainability information statement non financial sustainability information statement section strategic report constitutes burberry non financial sustainability information statement produced comply sections companies act information listed incorporated cross reference reporting requirement policies standards govern approach information necessary understand business impact policy due diligence outcomes environmental matters global environmental policy responsible sourcing policy chemical management standards code conduct sustainability burberry section pages impact section burberryplc com task force climate related financial disclosures tcfd pages employees code conduct culture values global health safety policy ethical trading code conduct global diversity equity inclusion policy directors report pages directors remuneration report pages purpose values page stakeholder engagement pages gender ethnicity pay gap report burberryplc com sustainability burberry section pages respect human rights human rights policy ethical trading code conduct child labour young worker policy migrant worker policy data protection policies information security policies model wellbeing policy global diversity equity inclusion policy partner non compliance policy impact section burberryplc com transparency supply chain modern slavery statement burberryplc com social matters ethical trading code conduct local stakeholder engagement policy volunteering match funding impact section burberryplc com anti corruption anti bribery anti bribery anti corruption policy cash acceptance policy fraud risk management policy reflecting needs stakeholders people page reflecting needs stakeholders customers page additional disclosure business model pages environmental social measures non financial kpis pages risk viability report pages purpose values page burberry annual report strategic report risk viability report risk viability report risk management burberry supports growth protects existing value approach risk group risk effective risk management fundamental achieving business objectives protecting reputation delivering added value stakeholders group risk team encompassing enterprise risk management business resilience insurance supports integration risk decision making collaborating teams across business group risk enhances risk identification analysis establishing required mitigation profile meet group strategic objectives manage risk within burberry risk appetite business resilience approach focuses critical risks controls business operations supports management continuity plans event risk occurring control failure conduct risk simulations business functions group incident management team chaired ceo manage global incidents insurance strategy informed risk appetite tolerance profile ensures sufficient cover insurable risks close collaboration enterprise risk management business resilience teams regulatory developments management steering committee established review current practices recommend changes required revised provision corporate governance code apply group focused identifying defining material controls ensure addressing impactful areas approach facilitates continuous improvement control framework concentrate refining controls enhancing board reporting within existing risk management framework preserving agility needed drive sustainable business growth operational efficiency risk management framework group risk management framework encompasses risk governance risk appetite risk processes demonstrated figures pages respectively framework aligned objectives iso assist business functions conducting risk management activities support achievement business objectives provide clear governance communicating outcomes risk management relevant internal external stakeholders foundation group risk management framework involves assessing internal external environment short medium term internal environment includes example employees suppliers capabilities resources infrastructure resilience culture objectives external environment concerns customer shareholder expectations regulations competitors luxury industry trends raw material volatility economy geopolitical environment group risk continually assesses potential changes environments support business areas risk management framework burberry annual report risk governance board responsible risk management internal control framework across burberry setting monitoring burberry risk appetite review principal risks facing business along corresponding mitigation strategies implemented audit committee oversight advice board current risk exposures assessing effectiveness risk management internal control framework ongoing basis behalf board risk ethics committees oversight key risks reporting audit committee formal groups ongoing risk monitoring decision making risks issues escalated business functions committees found page leadership teams monitoring risk landscape communicating insights within function maintaining business area register enterprise risks controls tracking control performance implementing appropriate governance leadership teams risk ethics committees audit committee board figure risk governance bottom approach top approach risk appetite group risk appetite defined board outlines nature extent risk group willing take support responsible sustainable growth board ultimately responsible challenging management development implementation effective systems risk identification assessment mitigation within risk appetite board delegated responsibility reviewing effectiveness group internal controls risk management arrangements audit committee ongoing review controls provided risk governance figure internal audit team provides independent assurance management audit committee effectiveness management actions group risk appetite reviewed risk committee approved board may burberry annual report strategic report risk viability report risk assessment group risk management framework supports colleagues quantifying likelihood impact identified risks risk response risks prioritised based risk position relative defined risk tolerance develop implement strategies prevent detect direct remediate risks including risk transfer insurance creation contingency plans necessary manage risks within risk tolerance controls developed clear ownership governance reporting effectiveness criteria risk reporting monitoring risk governance set figure page framework allows monitor risk factors effectiveness mitigation strategies ensuring ongoing protection alignment risk appetite tolerance clear escalation process events occur analyse root causes identify opportunities enhance controls maintain clear open communication channels provide training support colleagues continuous risk monitoring escalation audit assurance internal audit performs assurance activities including regular risk based internal audits directed annual internal audit plan reviewed approved audit committee culture supports positive dialogue business internal audit fostering two way information flow enable identification implementation process improvements annual internal audit plan aligned principal risks remains dynamic incorporate changes risk profile throughout year principal risks board considers principal risks significant risks faced group including material group performance could threaten business model future long term solvency liquidity burberry purpose risk management group considers short term two years medium term two five years long term five years principal risks outlined annual report encompass risks mitigating actions associated business listed order priority continuously conduct horizon scanning identify emerging risks could adversely impact business principal risk linked one risk categories external strategic operational compliance may impact one strategic priorities principal risk assessment identify manage risks could hinder ability create protect value achieving group strategic objectives throughout year continually review risks providing summaries risk committee audit committee least twice annually risks reviewed within context external internal operating environment review includes assessment comprehensiveness group principal risks descriptions movements tolerance levels associated risks effectiveness mitigating actions manage risks within tolerance risks outside tolerance develop additional plans mitigate risk exposure within reasonable time frame monitor implementation plans risk identification continuously identify risks across areas business evaluating potential impact organisational objectives within internal external environment risks categorised principal risk aligned risk categories external strategic operational compliance figure risk process audit assurance risk identification reporting monitoring risk assessment risk response risk culture risk appetite statement seek protect long term value reputation brand operations maximising commercial benefits support responsible sustainable growth within defined risk tolerance accept risk pursuit growth brand elevation commensurate position luxury fashion approve capital investment strategic projects accept moderate level risk dynamic pursuit profitable growth creativity innovation balancing reasonable return capital proportionate level commercial risk within approved capital allocation framework complying applicable laws regulations right thing essential part culture underpin strategic ambition evaluating risks opportunities prioritise interests safety customers people communities environment risk process core risk management framework lies risk culture intrinsically linked risk appetite cultivate risk aware environment strong communication leadership integration risk daily activities continuous learning consistent risk terminology accountability transparency top bottom communication burberry annual report strategic risk using principal risk framework risk management process group risk supports business functions embedding risk management within annual strategic plans board approval additionally scenario analysis risk appetite mechanisms employed identify key mitigating actions required manage risks board reviewed risks embedded within strategic plans october march emerging risks board considers emerging risks still evolving impacts likelihoods highly uncertain continuously assess emerging risks alongside principal risks part risk management process horizon scanning undertaken insights top bottom risk workshops internal stakeholders attending industry forums seeking specialist professional consultation required review principal risks risk management framework risk committee endorsed half year year end risk assessment principal emerging risks october april approved audit committee november may respectively year end assessment group principal risks following changes implemented foreign exchange principal risk expanded financial risk encompassing foreign exchange interest rates credit risk liquidity risk new principal risk strategic transformation introduced reflect large transformation programme currently underway within group principal risk cyberattack loss data renamed cybersecurity loss data results non compliance data regulations addressed within regulatory risk ethical environmental standards principal risk business interruption risk removed incorporated within principal risks predominantly supply chain eliminate duplication additionally operational business interruption risks addressed within operations people regulatory risk ethical environmental standards cybersecurity market risks addressed within global consumer demand risk tolerance level people principal risk updated moderate reflect changes within transformation programme principal risk movements following principal risks increased financial year geopolitical uncertainty reflecting heightened volatility instability across key regions includes trade tariffs divergent government policies may implications macroeconomy financial markets supply chains core operating regions global consumer demand driven economic pressures impacting purchasing behaviours worldwide people risk following transformational changes within organisation alongside wider uncertainty macroeconomic environment strategic pillars brand timeless british luxury product lead outerwear distribution align distribution product customer strategy culture reignite high performance culture risk movement risk remained stable since prior financial year risk increased since prior financial year risk decreased since prior financial year risk tolerance low adopt focused risk based approach seeking allocate resources mitigate related key risks wherever possible moderate adopt risk based approach allocates resources line strategic priorities high greater willingness tolerate risk prioritise resources pursuit strategic objectives viability assessment risk included viability assessment burberry annual report strategic report principal risks principal risk summary principal risk movement tolerance link strategy category financial risk new low external geopolitical uncertainty increased moderate climate change stable low strategic global consumer demand increased moderate image reputation stable low strategic transformation new moderate cybersecurity stable low operational supply chain stable low operations stable moderate people increased moderate intellectual property brand protection stable low compliance regulatory risk ethical environmental standards stable low overall tolerance remains low maintain high tolerance foreign exchange risk burberry annual report external risks financial risk risk movement new risk tolerance low burberry global operations exposed risks currency volatility interest rate fluctuations credit exposure wholesale partners suppliers financial institutions significant volatility foreign exchange rates could impact reported results fluctuations interest rates borrowing positions may affect financial performance maintaining sufficient liquidity essential meeting financial obligations supporting operations increased leverage could impact cost availability financing mitigating actions burberry hedges external purchases goods intra group balances using financial instruments burberry monitors overall impact unhedged exchange movements provides guidance shareholders exchange rates move quarterly basis treasury group finance teams overseen treasury committee monitor burberry foreign currency interest rate exposure liquidity risk treasury committee monitors group cash position manages financing requirements ensure sufficient cash maintained meet foreseeable needs close market positions group cash flow liquidity position regularly reported board group performs scenario testing four year plan includes various risk scenarios impact cash flow available liquidity review financial position third parties engaging contractual agreements receive management information review financial positions regularly details burberry approach managing foreign exchange interest rates liquidity given note financial statements geopolitical uncertainty risk movement increased risk tolerance moderate group operates wide range markets exposed geopolitical uncertainty stemming political instability wars civil unrest terrorism changes government policies may lead sanctions tariffs quotas geopolitical instability could impact consumer demand affect people reputation supply chain trade ability source operate within markets mitigating actions group engages external partners support specialist teams horizon scanning monitoring emerging current geopolitical developments relevant operations event geopolitical incident incident management framework would invoked assess severity incident take appropriate remedial action updates geopolitical developments scenario analysis deep dives reported risk committee audit committee board appropriate assessment geopolitical risk integrated approval processes investment new growth opportunities including expanding store network engaging prospective franchise wholesale partners within supply chain onboarding risk framework considers geopolitical risk selection suppliers vendors strategy leverages global reach across multiple customer segments regions mitigate reliance particular customer group nationality overall tolerance remains low maintain high tolerance foreign exchange risk burberry annual report strategic report principal risks strategic risks climate change risk movement stable risk tolerance low recognise importance addressing long term environmental sustainability challenges impacts climate change business reputational operational compliance financial terms failure comply regulatory changes aimed addressing global ghg emissions carbon taxation esg reporting requirements could result financial penalties impact reputation mitigating actions response managing climate related risks detailed within tcfd section pages global consumer demand risk movement increased risk tolerance moderate global consumer demand burberry products subject several factors including external influences changes macroeconomic environment including inflation extreme weather public health crisis may impact consumer spending luxury market consequently profitability commercial appeal burberry products impacted design choices sustainability preferences perceived quality breadth range pricing architecture distribution channels marketing activities customer experience well changes market competition could impact consumer demand growth opportunities significant differences global inventory planning allocation consumer demand could also impact profitability mitigating actions group consults industry specialists discuss emerging risks consumer preferences luxury industry market outlook opportunities growth discussions inform global inventory planning allocation marketing strategy financial plan group continually reviews stores commercial performance alongside market opportunities region inform commercial investment strategy product range plan balance carry forward replenishment newness informed analysis previous seasonal performance collection inputs regions market trends opportunities customer feedback competition pricing architecture considers offering price tier appeal broad luxury consumer audience execution considers foreign exchange market movements group tracks customer journey using key performance metrics example net promoter score identify address areas improvement track progress towards strategic objectives image reputation risk movement stable risk tolerance low group invests building trust brand protecting image reputation globally unfavourable incidents unethical behaviour failure demonstrate cultural social sensitivity negative media coverage relating group people practices products third party suppliers could damage group image reputation could lead slowdown sales loss customers could negatively impact value brand mitigating actions governance reputational risks issues mitigations provided ethics sustainability risk audit committees group undertakes due diligence processes prior engagements collaborators influencers celebrities performs documented risk assessments ahead campaigns runways events group operates strict approval processes editorial controls ensure product content reviewed signed prior external release group ensures adherence sustainability cultural ethical practices throughout organisation providing training guidance materials support teams group provides annual training monitors adherence requirements code conduct employees associated third parties group maintains incident management framework includes continuous monitoring social networks response procedures strategic transformation risk movement new risk tolerance moderate failure successfully deliver group burberry forward strategy including delivering benefits transformation programme foster resilience commercial growth could result underperformance peers mitigating actions established programme management office pmo overseen senior vice president strategy transformation governs delivery strategic programmes pmo hosts regular cadence steering committees meetings assess manage progress risks dependencies impacts tracked using project management tools frequently communicated audit committee board burberry annual report executive committee sponsors manage aligned workstreams collaborate business cross functionally operating clear transparent communication support efficient effective decisions enhance business long term partnering topical specialists transformation programme frequently scans changes external environment may impact strategy conducts benchmarking business capabilities performance peers market operational risks cybersecurity risk movement stable risk tolerance low cyberattack may result system outage impacting core operations resulting major data loss leading regulatory non compliance reputational financial damage nature attack could include social engineering ransomware credential compromise accounts externally facing assets target burberry third party provider mitigating actions group implements continuous improvement global security monitoring analytics capability supported security incident response processes group manages solutions help detect personal sensitive data loss improved control user access management group conducts second line assurance checks reporting control effectiveness executive management governance provided cross functional cybersecurity steering group separate data privacy steering group executive membership sponsorship specialist steering groups oversee emerging data regulations group cybersecurity incident response plans via system backups continuity strategies simulation exercises group works build culture security encourages positively reinforces secure employee behaviours supported mandatory security training awareness activities including phishing tests maintenance business financial controls support fraud detection prevention enhancement third party due diligence risk reporting capabilities supply chain risk movement stable risk tolerance low internal external factors could impact ability source raw materials manufacture procure distribute finished products suppliers timely basis required quality quantity cost accordance burberry ethical environmental standards disruptions stem various events including delay critical path external events extreme weather example floods natural hazards example earthquakes geopolitical events example trade restrictions trade sanctions terrorism industrial strikes social unrest cyberattacks critical supplier vendor insolvency outages data loss property damage infectious diseases result production halted deliveries delayed could lead financial reputational losses mitigating actions group defined onboarding risk framework selection new vendors suppliers foster strong relationships vendors suppliers review portfolio annually group detailed critical path aligned target seasonal delivery dates key milestones design stage include prototype review engineering validation industrialised production group responsible business principles responsible raw materials sourcing policy included within code conduct forms part contractual agreements suppliers vendors group continues evolve supply chain organisational design develop manufacturing distribution reduce dependence key sites suppliers vendors product suppliers vendors subject quality control programme includes regular site inspections independent product testing ensure compliance applicable regulatory chemical safety standards also perform quality quantity checks upon receipt dispatch finished goods distribution centres retail stores group closely tracks global shipments performance advance forward planning timely issue resolution meet delivery targets group business continuity plans major distribution manufacturing sites minimum viable company mvc assessment focusing time critical processes central group business continuity resilience strategy group comprehensive insurance programme supported natural catastrophe modelling insurance optimisation studies offset financial consequences insured events including fire flood extreme weather product liabilities burberry annual report strategic report principal risks group regularly reviews diversity equity inclusion policy practices use industry best practice attract external talent design deliver initiatives policies important colleagues global regional levels group offers various colleague engagement moments channels employee forums global functional town halls enterprise wide working groups colleague surveys listen gather feedback take action compliance risks intellectual property brand protection risk movement stable risk tolerance low counterfeiting copyright trademark design infringement marketplace could reduce demand genuine burberry merchandise impact luxury positioning brand challenges burberry rights allegations infringement burberry pose risk brand distribution outside authorised network parallel trade could negatively impact demand burberry products harm luxury reputation mitigating actions proud heritage seek protect brand reputation brand protection policy provides details manage risks policy available colleagues reviewed annually ensure relevance conduct brand protection enforcement globally group partners enforcement agencies digital social media platforms external lawyers peer brands disrupt flow counterfeit infringing products monitoring market reducing visibility counterfeits infringing items enforcing source level includes online monitoring take activities legal action appropriate existing branding new brand signifiers protected trademarks copyright registering designs across appropriate categories relevant markets brand protection team partners product design creative content teams ensure products content respect rights third parties establish adequate protections operations risk movement stable risk tolerance moderate inadequate technology support recovery system service outage underpinning critical processes across group including retail digital supply chain human resources finance could significantly impact group ability operate failure provide technology meets consumer expectations empowers innovation could impact consumer demand products services mitigating actions group established operating model aligned burberry forward strategy functions group mature governance framework embedded executive representation support investment decisions key risk management operating budgets group continuously implements controls improve operation systems including preventative maintenance landscape health third party management group leverages technology partners support service delivery continuous improvement group builds resilience business continuity disaster recovery plans exercises group incident management framework place report escalate appropriately respond incidents people risk movement increased risk tolerance moderate changes challenges internal external environment may impact ability attract motivate develop retain employees maintain workforce encompasses diverse backgrounds right capabilities drive performance meet strategic objectives mitigating actions executive committee senior leaders committed reviewing key talent capabilities align evolving business needs prioritising inclusive hiring practices internal movement talent reward philosophy provides colleagues across group competitive total reward package including fixed pay variable pay linked performance suite benefits market aligned regular pay analysis conducted ensure reward offering competitive group focuses learning development efforts two key populations leaders director colleagues line managers anyone manages people launched leading forward addresses leaders drive burberry forward new leaders leadership framework managers new suite line manager training programmes rolled burberry annual report regulatory risk ethical environmental standards risk movement stable risk tolerance low group subject broad spectrum laws regulations various jurisdictions operates include laws regulations relating products compliant use technology corporate fraud anti bribery corruption anti money laundering competition data corporate governance employment esg tax trade compliance sanctions human rights employee customer health safety changes laws regulations potential non compliance major compliance breach could material impact business financial performance mitigating actions specialist teams corporate regional levels supported third party specialists required provide advice support group compliance applicable laws tax requirements ethical business policies regulations teams aid colleagues understanding policies laws regulations relevant roles teams provide detailed reports specialist committees sustainability committee risk committee ethics committee data privacy committee audit committee board appropriate code conduct sets policies guidance ensure colleagues third parties act lawfully accordance burberry values training code conduct colleagues conducted annually supply chain partners key partners code conduct forms part contractual agreements vendor due diligence covers new existing supply chain partnerships ethical trading programme includes announced unannounced vendor audits review third party performance human rights policy governance framework global health safety policy sets clear commitments health safety standards risk hazard identification continuous improvement strategies within global operations operate global risk assessment process retail stores corporate offices supply chain environments reviewed quarterly incident audit trends discussed quarterly global health safety committee group believes fostering culture everyone feels comfortable speaking whether propose idea raise concerns ask help support established two platforms communication burberry resolution hub whistleblowing line burberry confidential whistleblowing line available employees supply chain partners supports identification prevention fraudulent activities within group associated third parties international tax developments key focus attention burberry tax strategy reported audit committee annual basis authorised economic operator aeo trade compliance programme place ensure keep date relevant regulations work closely third party specialists ensure compliance group operates monthly fraud investigation forum supports identification prevention fraudulent activities within organisation burberry annual report strategic report viability statement viability statement corporate planning process burberry annual corporate planning process consists preparing long term strategic plan forecasting current year business performance preparing detailed budget following year plans form basis assessing longer term prospects group strategic planning process includes detailed reviews budget forecasts long term plans ceo cfo conjunction regional functional management teams followed presentation discussion long term strategic plan board delivery plan monitored monthly reporting actual performance annual budget process subsequent forecast updates key assumptions considered strategic plan future sales performance product channel geography cost procure produce products expenditure plans cash generation material long term impairment burberry brand also consider group projected liquidity balance sheet strength appropriate adjusted planning process include scenarios relating key assumptions result uncertain macroeconomic geopolitical environment assessment prospects november announced burberry forward strategic plan reignite brand desire improve performance drive long term value creation next phase focus reconnecting brand founding principle design clothing protect people weather leaning heritage leveraging strengths disciplined approach believe greatest opportunity authenticity evolving product offer appeal broad base luxury customers group strategy set pages group key priorities continued focus productivity simplification financial discipline implement burberry forward optimised operating model improving ways working across organisation throughout retail network focused improving productivity reassessed contracts third parties drive procurement savings positioning brand return sustainable profitable growth supported strong cash generation balance sheet strength remain confident strategic plan improve performance drive long term value creation group approach balance sheet liquidity manage business efficiently flexibly maintaining control preserving long term value burberry brand ensuring secure financial headroom required fuel growth market opportunities arise considering continuing uncertain global consumer demand geopolitical environment prepared several planning scenarios based range assumptions potential outcomes assessing viability group board carried robust assessment principal risks group set risk report page principal risks uncertainties set pages directors considered potential impact risks viability group basis assessment assessment viability made reference group current position expected performance three year period march considered appropriate use directors aligns group approach long range planning sufficient almost cover currently approved capital expenditure projects group little contracted income current business development projects completed three year period projections beyond period contain long term growth assumptions scenarios developed range scenarios informed comprehensive review macroeconomic scenarios using third party projections macroeconomic data luxury fashion industry reflects current uncertain outlook financial outcomes risks materialising across industry last years developing scenarios directors assumed material long term impairment burberry brand group central planning scenario reflects balanced projection aligned group strategy balanced assumption economic uncertainty investment capital expenditure marketing consists subsequent two year period march sensitivity central planning scenario stressed downgrade revenues reduction revenues across full three year period well associated consequences ebitda cash burberry annual report management considers represents severe plausible downside scenario appropriate assessing going concern viability designed test even challenging trading environment result geopolitical macroeconomic uncertainty together potential impacts group principal risks described pages purposes reverse stress test considered plausibility scenario erodes remaining cash headroom reference lowest cash level annual business cycle test identified amount revenue decline required top severe plausible scenario group requires additional fundraising three year period march group opinion implausible severe plausible downside modelled following risks occurring simultaneously severe prolonged reduction gdp growth assumptions across markets operate combined reduction global consumer demand arising change consumer preference compared central planning scenario increase geopolitical tension leads incremental unmitigated tariff risks compared central planning model significant reputational incident negative sentiment propagated social media impact business interruption event resulting two week interruption arising supply chain impact interruption one channels occurrence one time physical risk relating climate change materialisation severe plausible ongoing market risk relating climate change line scenario reflecting global temperature increase compared pre industrial levels payment settlement arising regulatory compliance related matter impact delivering anticipated cost savings burberry forward transformation programme short term impact weakening key non sterling currency group recovered price adjustment approach provides board reasonable comfort group going concern viability positions assessed severity level accommodates impact one group principal risks funding assessing viability group directors also considered group current liquidity available facilities set note financial statements financial risk management objectives hedging activities set note financial statements central planning severe plausible downside scenarios group maintained necessary liquidity levels group million unsecured sterling sustainability bond due repayment september within going concern viability period group central planning scenario includes repayment million sustainability bond existing cash drawing million revolving credit facility rcf viability assessment rely upon either million million rcfs drawn instead assumes mitigating actions within management control would taken including working capital measures limiting capital expenditure variable marketing costs conclusion based assessment directors reasonable expectation group able continue operation meet liabilities period march strategic report including page approved issue board may signed behalf gemma parsons company secretary burberry annual report chair introduction board directors executive committee corporate governance report governance structure division responsibilities composition succession evaluation report nomination committee report audit committee directors remuneration report directors report corporate governance statement burberry annual report corporate governance statement chair letter chair introduction also announced fabiola arredondo antoine saint affrique sam fischer stand election agm would like thank debra fabiola antoine sam service company extensive knowledge experience brought board discussions throughout tenures information appointment processes induction programmes josh stella found nomination committee report page board effectiveness board conducted internally facilitated evaluation effectiveness year pleased report outcome review confirmed board committees continue operate effectively also identified areas focus summarised page update progress actions identified effectiveness review conducted respect also provided page one duties chair board review performance fellow directors annually aim process ensure board members able contribute best ability similarly induction process designed support new directors help effective roles quickly possible critical continuing effectiveness board nomination committee performed annual review directors time commitments independence behalf board information considerations contained within nomination committee report pages colleague voice period change board continues take opportunities hear understand views burberry colleagues variety ways including global workforce advisory forum town hall meetings attending meetings provides fellow non executive directors opportunities shine light burberry culture witness values embedded hear key issues concerns directly colleagues across business global workforce advisory forum meetings particularly valuable feedback mechanism grateful forum members participation well frank constructive comments advice corporate governance code reforms reforms corporate governance code published frc january reviewing governance framework practices understand impact ensure readiness report new code active year board reflected number additional board board committee meetings held year grateful fellow board members engagement continued commitment pleased way governance processes operated year served support burberry long term gerry murphy chair board continues take opportunities hear understand views burberry colleagues dear shareholder behalf board pleased present corporate governance report year ended march report describes burberry corporate governance framework procedures also summarises work board committees illustrate discharged responsibilities year areas focus reported elsewhere annual report brought number challenges result difficult volatile macroeconomic environment matters specific burberry important ever board focus key issues benefit stakeholders course year held meetings shareholders also attended meeting hosted investor forum discuss business performance governance topics including relation change ceo meetings sought reassure shareholders regarding board focus understanding addressing reasons behind decline burberry performance burberry forward refreshed strategic plan launched november clearer articulation burberry priorities marks return focusing strongest categories traditional core customers board meetings included extended strategy session october provided directors number opportunities engage executive management across business period transformation information board areas focus year set page board changes number board changes year jonathan akeroyd stepped board july debra lee retired non executive director following annual general meeting agm july appointed joshua schulman board chief executive officer july josh proven ability build global brands drive profitable growth key credentials leading burberry next phase transformation december announced appointment stella king joined board non executive director member nomination committee april burberry annual report corporate governance statement board directors board directors burberry board responsible long term success company accountable shareholders committee key chair audit committee nomination committee remuneration committee skills key retail sales marketing financial expertise luxury fashion operational excellence general management digital media regional markets china asia pacific americas luxury brands excluding fashion sustainability gerry murphy chair appointed chair july appointed may nationality irish british board skills key skills experience gerry brings substantial international senior management experience board addition depth knowledge managing business transformations understanding corporate governance requirements extensive experience retail sector provides board highly relevant valuable leadership burberry continues focus delivering long term sustainable value stakeholders current appointments chair tesco plc trustee burberry foundation senior advisor perella weinberg mentor mentoring previous appointments chair tate lyle plc blackstone group international partner firm private equity investment unit non executive director british american tobacco plc merlin entertainments plc reckitt benckiser plc abbey national plc novar plc ceo kingfisher plc carlton communications plc itv exel plc greencore group plc joshua schulman chief executive officer appointed july nationality american board skills key skills experience joshua accomplished chief executive officer held number ceo senior executive roles global luxury fashion retail businesses extensive retail industry experience spans years across merchandising wholesale brand management europe asia strong track record delivering brand transformations driving growth globally joshua shares board ambition build burberry unique british heritage deliver growth unlock brand full potential current appointments trustee director elton john aids foundation previous appointments ceo michael kors coach jimmy choo president bergdorf goodman nmg international non executive director farrow ball senior executive roles yves saint laurent gucci burberry annual report orna níchionna senior independent director appointed january nationality irish board skills key skills experience orna highly experienced non executive director brings extensive international business knowledge particularly consumer retail sectors passion sustainability demonstrated role chair eden trust led european retail practice mckinsey company subsequently held number advisory roles across retail luxury goods businesses deep understanding retail strategy transformations operating efficiency current appointments trustee deputy chair institute fiscal studies trustee chair eden trust previous appointments senior independent director saga bupa hmv northern foods royal mail non executive director bank ireland interim chair national trust chair founders intelligence partner mckinsey company lead european retail practice kate ferry chief financial officer appointed july nationality british board skills key skills experience kate highly experienced chief financial officer held roles public private companies addition financial acumen kate extensive experience driving business transformation strategic development deep understanding public markets particular expertise retail sector well excellent understanding luxury industry early career kate involved numerous ipos including burberry kate chartered accountant current appointments non executive director chair audit committee greggs plc trustee chair audit committee british olympic foundation previous appointments chief financial officer mclaren group limited group chief financial officer talk talk telecom group plc corporate affairs director dixonscarphone plc director within retail sector equity research team merrill lynch fabiola arredondo independent non executive director appointed march nationality american board skills key skills experience fabiola built led major division yahoo inc brings relevant international strategic operational experience internet media sectors board deep engagement world wildlife fund fabiola background also includes overseeing sustainability initiatives digital consumer knowledge coupled extensive international non executive directorship experience equips provide critical insight global market dynamics digital innovation sustainability challenges current appointments non executive director campbell soup company fair isaac corporation national council member world wildlife fund nature member council foreign relations board member finra board governors managing partner siempre holdings previous appointments non executive director experian plc boc group plc linde group saks incorporated hudson bay company bankinter national public radio rodale inc intelsat inc sesame workshop world wildlife fund usa senior executive roles yahoo inc bbc bertelsmann burberry annual report corporate governance statement board directors alessandra cozzani independent non executive director appointed september nationality italian board skills key skills experience alessandra brings burberry financial expertise profound understanding luxury market spent years prada group highly experienced chief financial officer alessandra career spans variety finance roles including financial management control accounting tax treasury insurance well investor relations started career auditor coopers lybrand current appointments executive director esselunga spa italian grocer previous appointments group chief financial officer executive director prada spa listed hong kong china previously group investor relations director financial management roles within prada group sam fischer independent non executive director appointed november nationality australian board skills key skills experience sam wealth global leadership experience including leading premium heritage brands across lifestyle consumer sectors track record driving business growth deep understanding key asian markets asset burberry continue engage communities region innovative products culturally relevant experiences current appointments ceo lion group previous appointments senior executive roles diageo plc including president asia pacific global travel executive committee member managing director greater china managing director south east asia various commercial general management roles colgate palmolive including managing director central europe ron frasch independent non executive director appointed september nationality american board skills key skills experience ron spent years working retail industry clear strategic acumen strong leadership skills wide ranging experience working luxury fashion brands saks instrumental developing company private label collections ron merchandising skills experience within fashion industry continue play pivotal role strengthen performance luxury fashion market current appointments ceo ron frasch associates llc non executive director crocs inc previous appointments non executive director mackenzie childs aztech mountain president vice chairman saks fifth avenue inc president ceo bergdorf goodman president americas italian licensing company luxury fashion brands burberry annual report danuta gray independent non executive director appointed december nationality british board skills key skills experience danuta highly experienced non executive director chair strong understanding consumers technology sales marketing within international business markets gained executive career extensive plc board experience understanding governance requirements make strong asset board current appointments chair direct line insurance group plc croda international plc board member employ autism development trustee resolution foundation previous appointments chair modwen property plc senior independent director aldermore bank plc non executive director remuneration committee chair old mutual plc page group plc non executive director paddy power plc aer lingus plc ministry defence ceo telefónica executive director telefónica europe plc antoine saint affrique independent non executive director appointed january nationality french board skills key skills experience antoine wealth experience consumer sector led number global brands throughout career ceo danone antoine put sustainability heart company strategy setting priorities align purpose performance ceo barry callebaut antoine addressed pertinent challenges chocolate supply chain understanding sustainability consumer market makes valued asset board continue focus positively impacting environment communities current appointments ceo director danone previous appointments non executive director barry callebaut ceo barry callebaut president unilever foods member group executive committee unilever plc non executive director essilor international stella king independent non executive director appointed april nationality italian board skills key skills experience stella brings wealth luxury industry experience deep understanding asian consumers worked asia pacific region years chief chinese business officer moncler stella responsible developing strategies meet needs chinese consumers world prior role stella president asia pacific moncler played pivotal role driving growth region current appointments senior advisor fountainvest advisor limited previous appointments chief chinese business officer moncler president asia pacific moncler president asia pacific sergio rossi non executive director stone island part moncler group burberry annual report alan stewart independent non executive director appointed september nationality british board skills key skills experience alan extensive corporate finance accounting experience gained variety industries including retail leisure considerable executive leadership experience including various chief financial officer positions within top ftse organisations alan currently member chapter zero community non executive directors committed achieving net zero targets founding member accounting sustainability cfo network keen interest sustainability important board driving burberry climate change strategy alan qualified chartered accountant deloitte current appointments non executive director chair audit risk committee haleon plc previous appointments non executive director chair audit committee diageo plc non executive director chair remuneration committee reckitt benckiser group plc non executive director audit committee chair games workshop group chief financial officer tesco plc chief financial officer marks spencer plc gemma parsons company secretary appointed october nationality british gemma fellow chartered governance institute years company secretarial experience member chartered governance institute company secretaries forum association general counsel company secretaries ftse previous appointments company secretary berkeley group holdings plc deputy company secretary smith nephew plc deputy company secretary tsb banking group plc directors whose tenure ceased jonathan akeroyd stepped ceo july debra lee stepped non executive director july corporate governance statement board directors burberry annual report corporate governance statement executive committee executive committee edward rash general counsel changes executive committee since jonathan akeroyd member committee july joshua schulman joined committee july gianluca flore member committee july jonathan kiman joined committee september paul price joined committee december mark mcclennon member committee december nick pope member committee december rod manley member committee december delphine sonder member committee december giorgio belloli member committee january charlotte baldwin joined committee march klaus bierbrauer chief supply chain industrial officer kate ferry chief financial officer joshua schulman chief executive officer charlotte baldwin chief information officer paul price chief product merchandising planning officer jonathan kiman chief marketing officer alexandra mccauley chief people officer burberry annual report corporate governance statement corporate governance report corporate governance report corporate governance code compliance burberry applied principles provisions corporate governance code code published financial reporting council frc found website frc org board considers company complied full provisions code year january frc published new version corporate governance code apply burberry save provision apply interim period assessing impact new code current governance framework changes may want consider ensure alignment corporate governance report provides overview board approach governance work undertaken details complied code provisions applied code principles found throughout annual report key highlights company compliance along cross references sections annual report detailed apply principles code pages board leadership company purpose chair introduction strategic report role board purpose culture stakeholder workforce engagement division responsibilities board composition role chair senior independent director non executive directors company secretary time commitment external appointments independence tenure composition succession evaluation appointment board succession planning skills experience knowledge board board diversity board evaluation audit risk internal control auditor independence effectiveness audit principal emerging risks risk management activities fair balanced understandable assessment viability statement remuneration directors remuneration report directors remuneration policy engagement stakeholders remuneration burberry annual report governance structure division responsibilities board supported committees collectively responsible burberry directed controlled responsibilities include promoting burberry long term success setting strategic aims values supporting leadership delivering strategy supervising constructively challenging leadership operational running business ensuring framework prudent effective controls reporting shareholders board stewardship information company governance structure found page sustainability sustainability essential element burberry strategy board responsible accordingly board also responsible ensuring approach sustainability integrated implemented across business reflecting increasing importance topics group society whole governance framework committees advisory forums shown diagram page provides regular updates key information board ensure able make informed decisions sustainability embedded remit committees appropriate information group environmental social priorities see pages stakeholder engagement burberry recognise identifying stakeholders engaging purposefully vital informed decision making long term success line code board prioritises understanding perspectives values key stakeholders ensuring voices reflected strategic decisions examples key decisions board made year key stakeholder groups considered found page workforce engagement board chosen engage workforce formally constituted global workforce advisory forum accordance code provision forum facilitates direct dialogue employees enabling perspectives shape decision making board uses additional ways understand employee views including employee engagement survey site visits town halls year board members visited stores operational sites worldwide engaging directly colleagues gain first hand insights local challenges opportunities shareholder engagement investor relations team conducted meetings investors financial year addition chair independent non executive directors executive committee members senior management conducted excess meetings around investors engagement included presentations investors analysts following release group quarterly half full year results available group website burberryplc com meetings majority group largest investors topics discussed investor meetings included governance matters management changes remuneration well strategy regional performance financial outlook team also arranged specific esg engagements investors analysts transparency accountability underpin approach shareholder wider stakeholder engagement agm resolutions passed acknowledged concerns votes opposed reappointment antoine saint affrique non executive director board discussed concerns shareholders investors explaining board fully satisfied antoine devoted exemplary time effort commitment role burberry consistently upholding time commitment making significant contributions decision making announced december antoine since decided stand election agm investor relations company secretariat departments act centre ongoing communication shareholders investors analysts board receives regular updates views group major shareholders departments well direct contact information burberry engaged key stakeholder groups found pages burberry annual report board supports burberry purpose culture values decisions strategy policies board monitors culture embedded throughout burberry using number mechanisms described report number significant changes including appointment new ceo changes executive committee launch updated strategic plan burberry forward following changes colleagues feedback annual heard engagement survey company culture generally neutral corporate governance statement corporate governance report monitoring corporate culture throughout period transition colleagues exhibited resilience confidence brand rich heritage arrival new ceo joshua schulman met spirit hopeful optimism approach transparency consistency open communication well received one four burberry forward pillars reignite high performance culture aims cultivate culture support creation sustainable value advance business objectives embark strategic journey evolving six indicators previously used measure culture refined set four indicators closely align vision culture indicators culture measure culture measure description purpose collaboration purpose belonging create environment colleagues strive achieve clear goal sense pride working burberry execution organising growth act integrity transparency consistency build trust inspire engagement promote ethical behaviours humanity integrity authentic leadership leaders genuine self aware guided strong values learning talent centre prioritise growth development colleagues burberry annual report culture indicators purpose belonging path reigniting high performance culture includes building sense belonging aligning colleagues intrinsic motivations company values significant transitions summer autumn noted neutral engagement score pulse engagement surveys neutral response balanced strong consistent sense pride burberry heritage across company following launch burberry forward representatives board met global workforce advisory forum gather feedback burberry forward strategy colleagues shared encouraging feedback many expressing increasing optimism updated strategy changes leadership represent proactive steps toward securing burberry future organising growth committed creating culture colleagues feel empowered equipped driven consistently deliver world class standards engagement survey revealed colleagues good understanding expected however dissatisfaction exists regarding burberry decision making processes light insights executive committee promptly established decision making working group includes colleagues various business areas examine improve decision making burberry date report working group met ten times identified key areas explore enhance decision making burberry authentic leadership recognising leaders pivotal cultivating strong company culture committed creating environment leaders exemplify burberry values surveys hear general colleagues feel supported line managers encouraged seek new better ways accomplish tasks empower leaders necessary tools insights effectively guide teams made significant strides increasing number engagement moments leaders talent centre growth colleagues priority focused ensuring effective frameworks support empower professional development provide colleagues opportunity enhance career development launched learning platform world leading one stop content library gives colleagues access training external providers industry leaders well custom compliance learning content addition self paced learning opportunities also offered three targeted development programmes colleagues management positions burberry continues provide apprenticeship programmes permanent colleagues based england collaboration accredited external provider courses cover wide range topics relevant various functions within organisation information found page conclusion drive burberry forward focused reigniting high performance culture people feel sense belonging motivation responsibility desire succeed continue listen colleagues show heard following actions communicating changes pace culture insight tools board employs range strategies actively listen colleagues collect feedback gaining deeper insight burberry culture hybrid sessions attended chair one non executive director hear directly colleagues across group topics relate burberry culture global workforce advisory forum employee resource groups ergs voluntary colleague led groups help foster diverse inclusive culture within burberry current ergs include disability neurodiversity inclusion lgbtqia mosaic sustainability women tech working parents employee resource groups engagement pulse surveys provide valuable insights colleague sentiment assessing overall job satisfaction perception culture leadership organisational values help identify areas improvement part heard listening strategy burberry hosts two surveys annually engagement survey pulse survey colleague surveys global town hall encourage colleagues levels share thoughts concerns topics discussed open feedback loop fosters transparency builds trust keeps leadership connected colleague perspectives global town hall feedback leverage internal communication platforms measure engagement reach cultural alignment insights platforms help refine communication strategies enhance transparency foster culture growth open communication across organisation internal communications platforms use newly deployed learning platform assess strengthen culture continuous development analysing learning trends participation rates popular topics collaboration levels reveal well culture supports growth innovation inclusivity learning platforms burberry annual report area focus outcome strategy operations approve burberry forward strategic refresh supported four pillars representing strategic objectives review marketing plan review regional updates receive progress report organisational design programme consider market trends implications areas strategic focus including operational priorities product evolution marketing communication burberry forward strategic plan half year results november questioning challenging providing feedback leadership team supporting programmes undertaken finance review budget review budget three year budget forecasts review scrutinise full half year financial results trading announcements review capital allocation financing consider optimal store portfolio capital expenditure flagship store offering review operational expenditure approval budget support budget approval annual report financial statements approval million bond due june used general corporate purposes approval extension term group million revolving credit facility rcf november additional million rcf march decision suspend dividend payments approval store openings closures refurbishment culture colleagues assess monitor culture colleague engagement survey various metrics review progress diversity equity inclusion strategy consider people priorities support initiatives presented leadership including support reignite high performance culture pillar burberry forward transformation programme corporate responsibility consider proposals charitable community activities investment review environmental targets review company modern slavery statement review proposed environmental priorities updates sustainability committee approval donation million social community causes worldwide approval company modern slavery statement approval environmental targets risk review group risk appetite review emerging principal risks approval tolerance levels principal risks approval group risk appetite governance conduct annual board effectiveness review review investor sentiment engage employees including attendance global workforce advisory forum annual review governance related policies agree key areas focus arising board effectiveness review approve appointment new ceo new non executive director board insight awareness colleague sentiment corporate governance statement corporate governance report principal areas focus board burberry annual report key decisions review capital allocation framework decision withdraw dividend board reached decision july board decided suspend dividend payments shareholders take financial measures protect balance sheet capacity invest burberry long term growth board reviewed forecast financial performance likely impact macroeconomic factors group funding position board detailed discussions supported company brokers likely long term consequences decision board considered impact conserving cash protecting balance sheet would company ability make investments would support burberry growth viability long term stakeholder interests taken account shareholders board determined shareholders interests take measures order preserve long term financial health group people measures taken improve financial position would assist preserving creating jobs long term partners securing burberry long term future would support business partners suppliers future lenders debt holders impact paying dividends whether business remained within financial covenants agreed lenders approve burberry forward strategic refresh board reached decision board directors conducted depth review strategy year board deliberations included presentations led ceo members executive committee senior leaders covering aspects business including brand communications product channel optimisation supply chain financial performance well trends luxury fashion board approved burberry forward strategic refresh four supporting pillars explained strategic report pages likely long term consequences decision implementation burberry forward expected support growth positive financial performance long term stakeholder interests taken account customers board considered reignite desire brand develop product strategy delight customer well ensure customer focused approach across channels shareholders board view strategic refresh promotes sustainable performance group long term people focus high performance culture lead improved colleague engagement enhanced sense belonging explained section statement page board took views key stakeholders account making decisions conducting board business two key decisions taken board set explanation stakeholder engagement methods used information gathered stakeholders informed board decisions key stakeholders customers communities shareholders government people partners burberry annual report board meetings attendance board held eight formal meetings financial year including depth strategy session london director unable attend meeting given opportunity provide feedback accompanying material advance meeting details attendance board committee meetings found year board committee agendas shaped ensure discussion focused key strategies responsibilities well reviews significant issues arising productivity company continues demonstrate develop improving levels productivity owing strong human capital training development programmes focus elevating customer experience throughout distribution retail networks information aspects business provided pages tax governance framework cfo responsible group tax strategy effectiveness tax risk management tax processes transparency disclosures strategy implemented global tax trade compliance teams assistance finance leadership team compliance group tax strategy reviewed ongoing basis part regular financial planning cycle audit committee responsible reviewing group tax strategy least year significant tax matters arise information regarding group tax strategy found page provided burberryplc com year changing macroeconomic geopolitical conditions group ongoing performance strategic priorities reviewed scheduled meetings chair non executive directors held closed session without management present board meeting throughout year directors spent time meeting investors interviewing candidates executive non executive roles addition directors undertook store site visits attended fashion shows town halls brand events meetings global workforce advisory forum share capital information company share capital including substantial shareholdings found directors report page directors attendance board committee meetings attendance record shows total eligible meetings board audit nomination remuneration gerry murphy joshua schulman jonathan akeroyd kate ferry orna níchionna fabiola arredondo alessandra cozzani sam fischer ron frasch danuta gray debra lee antoine saint affrique alan stewart jonathan akeroyd retired board july kate ferry unable attend one meeting due short period medical leave debra lee retired board following last agm july directors attended scheduled meetings absences noted due meeting held short notice corporate governance statement corporate governance report burberry annual report governance structure burberry diagram illustrates burberry governance structure flowing board comprises committees advisory forums defined scope covering one key environmental social governance topics formalised reporting line structure ensures important matters monitored right people establishes information flow board enabling make informed decisions deliver strategy information role board principal committees page corporate governance statement division responsibilities governance structure division responsibilities burberry group plc board ceo nomination committee audit committee remuneration committee global workforce advisory forum executive committee sustainability committee group treasury committee risk committee ethics committee cultural advisory council data privacy steering committee cybersecurity steering group global health safety committee key decision making advisory environmental social governance topics covered environment ethics finance risk legal compliance people communities burberry annual report board responsible promoting burberry long term sustainable success achieved establishment effective governance framework board oversees keeping interests stakeholders fore decision making information flows governance framework ensure decision making well informed transparent balanced board establishes group purpose values sets group strategy including sustainability climate goals ensuring alignment culture overseeing implementation management board also responsible oversight group internal control risk management including group risk appetite specific matters reserved approval board details board key areas focus found page full schedule matters reserved board decision available corporate governance section burberryplc com biographies members board found pages individual roles directors division responsibilities found page board established committees assist exercising authority board board delegates day day responsibility running group ceo responsible commercial operational risk financial elements business ceo also responsible management development strategic direction group consideration approval board ceo executive committee assists ceo implementing strategy approved board executive committee members invited appropriate board board committee strategy meetings inform update board areas responsibility executive committee committees may engage third party consultants independent professional advisors may also call upon group resources assist discharging respective responsibilities addition committee members company secretary external advisors occasion directors members senior management team attend committee meetings invitation chair relevant committee terms reference audit committee remuneration committee nomination committee viewed corporate governance section burberryplc com monitors integrity financial statements including disclosures associated tcfd provides assurance board group internal financial controls risk management systems appropriate regularly reviewed reviews internal audit programme oversees work external auditor approving remuneration recommending appointment behalf board audit committee supported ethics committee risk committee group treasury committee audit committee report found pages determines policy executive director remuneration aligning burberry long term strategic goals regard views shareholders stakeholders sets remuneration chair executive directors senior management oversees wider employee reward policies directors remuneration report found pages reviews composition board ensure remains appropriate board best placed fulfil role ensures plans place orderly succession board senior leadership positions oversees formal rigorous transparent procedure appointment new directors keeping mind importance diversity forms balancing skills experience ensuring alignment purpose values culture nomination committee report found pages audit committee chaired alan stewart remuneration committee chaired danuta gray nomination committee chaired gerry murphy roles responsibilities corporate governance statement division responsibilities burberry annual report board roles division responsibilities board currently comprises members chair ceo cfo nine independent non executive directors experienced influential individuals drawn wide range industries backgrounds skills promote long term sustainable success group board determined non executive directors independent chair also considered independent appointment directors biographies tenures key skills experience external appointments set pages directors appointed board initial fixed three year term subject annual election shareholders company agm accordance code directors exception fabiola arredondo sam fischer antoine saint affrique retire offer election agm joshua schulman stella king joined board july april respectively offer election joined board since last agm ensure board performs effectively clear division responsibilities leadership board executive leadership roles chair ceo senior independent director agreed board available view corporate governance section burberryplc com chair responsible board overall effectiveness directing burberry chairing board meetings nomination committee meetings agm setting board agenda ensuring directors receive accurate timely clear information ensuring effective communication board management colleagues shareholders group wider stakeholders promoting culture openness constructive debate facilitating effective contributions non executive directors overseeing annual board effectiveness review addressing subsequent actions promoting highest standards corporate governance ensuring views stakeholders taken account making decisions senior independent director acting sounding board chair acting intermediary directors necessary chairing meetings absence chair available shareholders stakeholders concerns unable resolve normal channels together non executive directors assessing performance chair annual basis leading search appointment process recommendation board new chair necessary non executive directors providing effective constructive challenge board scrutinising performance management agreed performance objectives leading appointment process executive directors assisting development approval group strategy reviewing group financial information ensuring effective systems governance risk management internal controls place ensuring regular open constructive dialogue shareholders offering specialist knowledge board ceo day day management group leading executive committee responsible commercial operational risk financial elements group developing group strategic direction implementing agreed strategy approved board ensuring effective communication information flows board chair representing group external stakeholders responsible oversight following key functions design marketing digital merchandising supply chain corporate affairs human resources strategy global commercial corporate responsibility corporate communications responsible oversight burberry sustainability agenda climate goals cfo supporting ceo developing group strategy implementation overseeing global finance business services functions developing group capital allocation framework responsible establishing financial planning maintaining adequate internal controls financial reporting representing group external stakeholders responsible oversight following key functions investor relations internal audit risk management business continuity burberry business services finance insurance tax treasury trade compliance company secretary providing advice support chair directors ensuring board receives high quality information resources timely manner board operate effectively meetings carry duties assisting chair committee chairs setting agenda board committee meetings advising keeping board date matters corporate governance regular papers updates meetings facilitating induction programme new directors together chair assessing ongoing training needs directors burberry annual report time allocation executive directors board executive directors permitted hold one external non executive directorship joshua schulman director trustee elton john aids foundation charitable foundation kate ferry independent non executive director greggs plc non executive directors non executive directors letter appointment sets terms conditions directorship non executive directors expected devote time necessary perform duties properly expected approximately days year basic duties chair senior independent director expected spend additional time carry extra responsibilities roles entail summary roles found page full descriptions found corporate governance section group website burberryplc com board noted changes non executive directors external appointments year confirms perceived impact responsibilities company accordance authority delegated nomination committee chair reviewed approved advance appointment alan stewart non executive director haleon plc making decision chair satisfied alan would able continue devote necessary time proper performance role burberry board also considered gerry murphy appointment non executive director chair tesco plc danuta gray appointment non executive director chair croda international plc content gerry danuta continue sufficient time undertake roles burberry board considers chair non executive directors fulfilled required time commitment making assessment board considered views certain shareholders regarding antoine saint affrique time commitments details found page independence non executive directors year accordance terms reference nomination committee reviews independence non executive directors excluding chair taking account range factors including set provision corporate governance code part deliberations nomination committee gave particular regard fabiola arredondo appointed board march therefore served board years following review nomination committee concluded fabiola independence compromised non executive directors continue independent please see page information independence assessment performed nomination committee induction training company secretary assists chair designing facilitating formal induction programme new directors ongoing training newly appointed director receives formal tailored induction programme enable function effectively quickly possible building deep understanding business induction typically consists meetings executive non executive directors briefings senior managers across key business areas operations addition non executive directors provided opportunities visit key stores markets facilities includes visits various operating facilities country territory residence following initial induction non executive directors understanding business developed ongoing meetings engagements appropriate details induction programmes implemented joshua schulman stella king set nomination committee report page chair considers training needs individual directors ongoing basis board direct access advice services company secretary carry duties directors may also obtain independent professional advice necessary group expense managing conflicts interest directors duty companies act avoid situation could direct indirect conflict interest possible conflict interest company group company articles association board authority approve situational conflicts interest adopted procedures manage appropriate approve conflicts authorisations granted board recorded company secretary register noted board next meeting review situational conflicts authorised undertaken board annually following last review board concluded potential conflicts appropriately authorised circumstances existed would necessitate prior authorisation revoked amended authorisation process continued operate effectively corporate governance statement division responsibilities burberry annual report board evaluation evaluating performance board undertakes formal annual review effectiveness designed help identify opportunities improve enhance performance group evaluation process led chair includes review effectiveness board whole board committees individual director every three years review facilitated externally accordance corporate governance code last externally facilitated review completed financial year board decided conduct internal effectiveness review utilising board outlook platform provides customisable questionnaire based framework designed use data analytics identify strengths opportunities improvement questionnaires finalised chair chairs audit nomination remuneration committees supported company secretary addition board members members executive senior management team regularly attend board board committee meetings invited complete questionnaires chair also met director consider individual performance supplement review challenging market conditions leadership changes experienced reflected feedback highlighted need board embed key lessons learned period strengthen ways working refocus long term value creation ensure sustained resilience growth key themes takeaways identified across areas stronger performance opportunities improvement corporate governance statement composition succession evaluation composition succession evaluation number strengths identified review process including board aligned key operational priorities business board culture collaborative responsive built trust commitment sustainability well articulated aligning board global standards demonstrating strong ethical sourcing supply chain oversight stakeholder management proactive particularly shareholders board management relationship collaborative information flow timely review also identified potential areas development action agreed board set progress areas focus monitored discussed results review board confirmed view board continues operate effectively within inclusive transparent environment audit nomination remuneration committees continue operate well provide effective support board carrying duties information effectiveness evaluations committees individual directors conducted year found pages nomination committee report includes details page evaluation skills experience directors addition formal board effectiveness review process senior independent director held meeting non executive directors without chair present review performance year review confirmed gerry murphy effective chair well respected board continued provide strong leadership throughout areas focus based feedback received assessment process board agreed following areas focus monitored year area development action strategy operations embed leading indicators risk dashboards board ways working strengthen oversight commercial operational performance enhance decision making support delivery short long term strategic goals enhance monitoring digital transformation disruption innovation enhance monitoring supply chain efficiency resilience geopolitical risk enhance board awareness current evolving competitive landscape consumer trends people resources undertake thorough review board members collective critical skills experience relative burberry future business needs optimise board succession planning board ways working review board processes papers support better oversight decision making burberry annual report progress update focus areas identified following board effectiveness review area development action strategy operations board management team work together refine key strategic priorities determine definitive plan timetable implementation clear operational milestones kpis agreed order measure progress enable effective oversight strategy implementation management instigated review value proposition conjunction external advisors consider proposed adjustments brand positioning product customer segment prioritisation outputs discussed board building work ceo presented refreshed strategy ambition board across four strategic pillars brand communications product channel supply chain together proposals reignite high performance culture order translate strategy action deliver ambition specific action plans strategic pillars also discussed board board confirmed support strategic direction outlined management plan refined finalised burberry forward announced november alongside half year results schedule kpis track delivery plan subsequently developed develop clear action plan deliver growth burberry commerce business together key metrics enable progress measured board received updates burberry commerce business july october new kpis identified enable progress measured people resources ensure organisation structure roles responsibility accountability clear configured support strategy execution number changes key roles since joining burberry july ceo reviewed leadership team ensure appropriately configured support execution burberry forward ongoing focus talent agenda including leadership team succession development board also welcome opportunities non executive directors engage management informal basis nomination committee received updates ceo chief people officer organisational evolution key talent succession development board members continue attend town halls visit stores factories attend public events possible enable engage management colleagues regularly board ways working revisit board agendas papers ensure sufficient focus key strategic pillars areas board input help drive business forward ongoing action additional items introduced necessary ensure board meetings focused discussing key strategic topics corporate governance statement composition succession evaluation burberry annual report corporate governance statement report nomination committee report nomination committee dear shareholder behalf nomination committee pleased present report describes carried responsibilities year introductory letter focuses primarily changes board membership report also covers committee responsibilities new director selection induction processes board composition diversity directors time commitments see page read board succession planning see page read ceo non executive director induction see pages read board diversity succession planning committee continued focus board succession planning aim build board requisite skills experience support executive management execution burberry strategy realising burberry full potential effective committee must react burberry circumstances consider skills attributes required address burberry long term needs july committee recommended board appointment joshua schulman ceo josh proven leader outstanding record building global luxury brands driving profitable growth initially short listed search new non executive director luxury experience well known nomination committee search extended include potential future ceos committee also oversaw search appointment stella king non executive director member nomination committee april stella brings considerable experience burberry core category outerwear extensive knowledge asian markets line committee ongoing work refresh board composition announced december fabiola arredondo antoine saint affrique would step non executive directors following agm july may announced sam fischer would also step non executive director following agm july second half committee considered approved updates ceo review leadership team ahead implementing changes committee remains committed ensuring burberry balanced board supports company long term success committee effectiveness committee annual performance review confirmed committee operates effectively took account long term needs business approach board succession planning recruitment year gerry murphy chair nomination committee gerry murphy chair nomination committee areas focus recruitment new ceo board succession planning board composition diversity annual review corporate governance requirements effective committee must react burberry circumstances consider skills attributes required address burberry long term needs burberry annual report corporate governance statement report nomination committee committee member member since meeting attendance gerry murphy chair may fabiola arredondo march alessandra cozzani september sam fischer november ron frasch september danuta gray december debra lee october orna níchionna january antoine saint affrique january alan stewart september debra lee resigned committee july retirement board retail sales marketing financial expertise luxury fashion operational excellence general management digital media regional markets china asia pacific americas sustainability luxury brands excluding fashion summary meetings committee met five times including unscheduled meetings called deal ongoing processes hoc matters arose details attendance committee meetings set stella king joined committee april appointment non executive director committee role responsibilities set terms reference available burberryplc com committee responsibilities across three main areas board composition reviews structure size composition board committees ensure right balance skills knowledge experience diversity independence identifies makes recommendations board suitable candidates fill board vacancies board executive succession planning develops succession plans ensure board membership refreshed meet needs company oversees development diverse succession pipeline executive committee key senior management roles line approach ensure talent centre company corporate governance considers independence time commitments non executive directors reviews board composition diversity principles ensure remain fit purpose board composition succession planning right blend skills knowledge experience boardroom ensures effective board diverse fresh perspectives contribute well rounded discussions lead effective decision making board considers skills matrix guide inform succession plans criteria prospective board appointments chart shows blend skills experience board date report burberry annual report board satisfied directors continue make effective valuable contributions board devote sufficient time discharging responsibilities directors burberry part assessment noted danuta gray currently chair two listed companies addition role burberry however committee satisfied danuta continues sufficient time meet board responsibilities committee confirmed directors met policy directors time commitments apart danuta gray whose additional commitments approved committee exception policy directors independence committee also conducts annual review independence non executive directors behalf board corporate governance code requires board state reasons concluding director independent notwithstanding existence certain circumstances likely impair appear impair director independence provision code provides non exhaustive list circumstances considered including length service served years board since appointed march committee paid particular regard assessing independence fabiola arredondo noting impartiality contribution board committee meetings including degree rigour challenge discussions decision making basis rigorous assessment committee confirmed view fabiola remains independent directors exception fabiola arredondo sam fischer antoine saint affrique seek election election agm line board composition diversity principles board appointments continue made merit objective criteria approach includes ensuring search pool includes candidates diverse backgrounds experience insights relevant group strategic priorities taking account burberry purpose culture values well changing business needs also regard wider stakeholder requirements environmental factors promoting diversity inclusion equal opportunity aim ensure least board female least one board member ethnic minority background board tenure good balance board recently appointed directors longer tenure directors time commitments nomination committee conducts annual assessment time required non executive directors effectively discharge responsibilities also assesses performance evaluation whether time spend executing roles sufficient year committee reviewed directors time commitments ensure complied policy directors time commitments introduced according policy non executive directors expected hold four non executive directorships public companies including burberry one time executive directors undertake one non executive directorship listed company significant appointment exceptional compelling circumstances board may approve exemption policy agrees merited order board benefit individual director continuing appointment directors required obtain prior approval taking significant additional appointments chair undertakes pre approval behalf board deemed necessary chair may escalate specific appointments consideration full board terms appointment non executive directors require allocate sufficient time meet expectations role committee considered expected time commitment chair non executive directors taking account attendance board committee meetings well engagements outside formally scheduled board committee meetings assessed whether non executive directors met requirement committee also considered external appointments non executive directors reviewed register directors conflicts burberry annual report corporate governance statement report nomination committee induction ceo joining board july joshua commenced rapid comprehensive induction process provide deep insight burberry business products brand well understand key stakeholders joshua induction process outlined ceo induction process building joshua existing knowledge burberry products brand met members creative team develop deep insight creative approach product development meetings members executive committee regional presidents key functional heads visits stores offices usa asia pacific regions visits burberry manufacturing sites italy attendance burberry supplier conference meeting major shareholders engaging external stakeholders gain industry insights comprehensive briefing company secretary directors duties governance standards regulatory responsibilities introducing colleagues site visits global town halls opportunities interact burberry people board diversity board committed driving progress promoting diversity line board composition diversity principles principles set clear objectives aligned listing rules recommendations ftse women leaders review parker review throughout board maintained objective ensuring least members female date report women make board held key leadership roles cfo senior independent director reflecting commitment board diversity inclusive leadership burberry recognised top performer report ftse women leaders review october date used submission report women accounted executive committee members direct reports date report board least one director ethnic minority background compliant parker review target ftse companies however board compliant target part year review explained non executive director appointment timeline sets key stages process culminated nomination committee recommendation appoint stella king board selection process undertaken accordance board composition diversity principles considered variety factors including gender ethnic background unique strengths experience alignment burberry strategic vision culture values purpose timeline appointment process stage building brief nomination committee agreed attributes skills required focusing experience luxury fashion markets relevant burberry stage candidate search committee appointed external search firm egon zehnder assist appointment process firm provided diverse list candidates initial interviews conducted chair short list selected interviews committee members ceo company confirms egon zehnder connection company individual directors save engaged company provide executive recruitment services stage review assessment interviews short listed candidates interviewed number committee members well ceo chief people officer preferred candidate selected stage recommendation committee made final recommendation board appoint stella king non executive director stage induction comprehensive induction programme organised company secretary chair board stella induction began appointment formally effective included observing march board meeting attending sessions members senior leadership team company secretary burberry annual report diversified board gender women men tenure years years years nationality australian french italian irish american british board also recognises embraces importance benefits diversity inclusiveness board committee level march board committee gender diversity follows nomination committee women audit committee women remuneration committee women board composition diversity principles reflect changes incorporated version corporate governance code calls companies consider diversity wider sense moving beyond specific protected characteristics board commitment diversity leadership burberry reflected goal senior management come ethnic minority backgrounds december target outlined annual report date report senior management came ethnic minority background disclosures required listing rule march board selected march reference date disclosure last day consistent reporting date selected prior year date company complied targets gender diversity set listing rule however company comply target ethnic diversity date board continued meet obligation maintain required gender diversity addition women hold senior independent director cfo roles following resignation debra lee july board composition female however following appointment stella king april board female board complied requirement least one director ethnic minority background departure jonathan akeroyd july debra lee july following departures board temporarily meet requirement however appointment stella king april ethnic diversity target met data table collected inviting board executive committee member self identify gender ethnicity using specified categories number board members percentage board number senior positions board ceo cfo sid chair number executive management percentage executive management men women specified prefer say number board members percentage board number senior positions board ceo cfo sid chair number executive management percentage executive management white british white including minority white groups mixed multiple ethnic groups asian asian british black african caribbean black british ethnic group specified prefer say burberry annual report also oversaw forensic review causes recent business performance undertaken independent advisor committee considered key findings across execution area together initiatives identified management address opportunities identified review committee satisfied management applied robust consistent accounting policies provided committee sensitivities assumptions forward looking trading also reviewed challenged going concern assessment severe plausible scenarios considered liquidity needs group order recommend viability statement pages board information committee addressed significant matters year set table pages relation group risk management carried detailed review management assessment principal risks tolerance levels mitigations concluded appropriate also reviewed management preparations new corporate sustainability reporting directive csrd regulations revised provision corporate governance code concluded approach appropriate committee confirms group complied mandatory audit processes audit committee responsibility provisions competition markets authority statutory audit services order report describes work committee discharging responsibilities frc review year frc wrote chair board informing board burberry group plc annual report march included selection review part corporate reporting review operating procedures audit committee pleased outcome review noted questions queries frc wished raise company frc role consider compliance reporting standards verify information provided therefore given scope inherent limitations review benefit detailed knowledge group would appropriate infer assurance review annual report accounts correct material aspects committee effectiveness committee annual effectiveness review undertaken part internal review board committee effectiveness pleased note review confirmed committee fulfils purpose well well informed challenges appropriate information process set page alan stewart chair audit committee corporate governance statement report audit committee report audit committee alan stewart chair audit committee areas focus scrutinising financial performance financial reporting estimates judgements monitoring assessing risk management internal control frameworks dear shareholder pleased present report audit committee describes committee main activities areas focus year areas focus primary purpose committee oversee integrity financial reporting provide assurance board company internal control risk management processes operating effectively committee also oversees work external auditor details monitored audit available page year focused reviewing group financial performance taken consideration determining appropriate accounting estimates relating impairment property plant equipment right use assets inventory provisioning uncertain tax positions burberry annual report committee member member since meeting attendance alan stewart chair september alessandra cozzani september ron frasch november danuta gray july debra lee october antoine saint affrique january debra lee retired board july stepped member audit committee date role main responsibilities committee main role responsibilities committee set written terms reference available burberryplc com part committee annual review terms reference committee took consideration requirements frc audit committees external audit minimum standard minimum standard determined key requirements minimum standard already met continue keep requirements minimum standard review light key responsibilities addition specific topics mentioned committee chair letter committee considered following items business financial year financial reports integrity group financial statements formal announcements group performance accounting policies committee reviewed approved management identification determination key accounting judgements risk internal controls group internal financial operational compliance controls risk identification management processes cybersecurity committee received update cybersecurity risk governance viability consideration management assumptions disclosures relating going concern group viability statement set pages internal audit review annual internal audit programme consideration findings internal investigations well management response process controls efficiency committee received updates management design product development transition risks controls emerging regulatory developments treasury matters including reviewing approval proposed amendments treasury policy external auditor recommending appointment external auditor approving remuneration overseeing work reviewing reports received external auditor reviewing effectiveness independence external auditor ethics update committee received considered reports management considerations ethics committee including group approach human rights whistleblowing arrangements legal brand protection update committee received considered reports management current emerging risks fields legal data protection brand protection asset profit protection health safety actions taken proposed mitigate risks sustainability reporting committee reviewed requirements tcfd progress made relation climate related risk scenario analysis undertaken assess impact climate related risks burberry committee also received update preparations impending esg regulations group tax strategy committee reviewed group tax strategy context evolving regulatory environment group uncertain tax positions tax governance framework found page committee composition debra lee stepped member committee following retirement board july changes committee composition announced december antoine saint affrique step board member audit committee upon conclusion agm july board satisfied alan stewart alessandra cozzani recent relevant financial experience committee members collectively appropriate knowledge skills experience either finance accounting roles broad consumer experience knowledge financial reporting international businesses whole board satisfied audit committee appropriate knowledge skills experience relevant business sector fulfil duties delegated committee biographies set pages provide details member background experience burberry annual report corporate governance statement report audit committee significant matters year ended march audit committee addressed matters impairment assessment right use assets property plant equipment held retail cash generating units november march may committee considered management assessment recoverability carrying value assets held retail cash generating units including property plant equipment right use assets relating store leases committee considered approach applied management review potential indicators impairment retail cash generating units current performance impacted committee reviewed challenged sensitivities applied estimates future store performance reviewed management determination store impairments proposed disclosures impairments sensitivities relating uncertainties committee concluded carrying value assets held retail cash generating units disclosures contained financial statements period appropriate results impairment assessment assets held retail cash generating units together related sensitivities set note financial statements appropriateness valuation recoverability cost inventory resulting estimation provision required november march may committee considered management assessment recoverability cost inventory resulting amount provisioning required committee reviewed group current provisioning policy expected loss rates inventory held balance sheet date nature condition current inventory review included analysis actual inventory noting age expected exit routes remaining surplus inventory held balance sheet date actual loss rates experienced focusing specifically elevated levels inventory relating recently aged seasons committee considered sensitivity assumptions loss rate exit route aligned current performance business future expectations inventory management initiatives understand management quantified range potential outcomes level estimation applied committee concluded inventory assets recognised disclosures contained financial statements period appropriate movements inventory provisioning related sensitivities set note financial statements uncertain tax positions group significant tax exposures appropriateness related provisions financial statement disclosures november march may committee received regular updates regarding developments relating discussions tax authorities status ongoing tax audits committee reviewed challenged appropriateness assumptions estimates applied estimate amount assets liabilities recognised relation uncertain income tax deferred tax positions disclosure significant estimates applied tax balances committee also discussed matters external advisors significant estimation required committee concluded assets liabilities recognised disclosures contained financial statements period appropriate details movements tax balances set note financial statements disclosure tax contingent liabilities given note meetings attendance committee met formally five times year see table page chair committee met separately representatives external auditor senior members finance function senior vice president internal audit risk regular basis including prior committee meeting addition met members group internal audit team members management hoc basis required fulfil duties regular attendees committee meetings included chair board ceo cfo company secretary senior vice president internal audit risk vice president group financial controller general counsel representatives external auditor end meeting committee held closed meetings external auditor senior vice president internal audit risk without management present burberry annual report significant matters year ended march audit committee addressed matters going concern viability committee considered risks could threaten group business model future performance solvency liquidity reputation also looked included severe plausible downside scenario included aggregation several severe impacts principal risks reverse stress test scenario alongside current cash position facilities available group well mitigating actions could taken committee concluded robust assessment carried scenarios considered group able maintain sufficient liquidity continue trading impact climate risk group financial reporting financial statements tcfd csrd considerations committee considered impact climate risk financial statements tcfd reporting behalf board committee considered approach taken management develop digital twin model updated latest group performance locations committee noted ongoing areas market consumer preference risk physical risks significant risks identified modelling committee also noted ongoing increase visibility climate risk wider organisation reviewed preparations progressed management year csrd reporting committee reviewed disclosures annual report behalf board ensure compliance tcfd recommendations assurance provided group auditors whether annual report fair balanced understandable committee considered annual report interim results behalf board ensure fair balanced understandable accordance requirements corporate governance code committee reviewed report strategic report drafting team comments arising review financial statements executive directors comments raised group auditor committee also considered use alternative performance measures group concluded appropriate appropriate balance statutory alternative performance measures ensuring equal prominence committee concluded burberry annual report taken whole fair balanced understandable provides information necessary assess group performance business model strategy matters year committee also considered management papers subjects including carrying value goodwill associated disclosures significant judgements relating lease term judgement taken likelihood exercising options within leases recoverability deferred tax assets relating losses impairment receivables burberry annual report corporate governance statement report audit committee external auditor ernst young llp commenced first year audit following competitive tender process current audit partner michael rudberg held role since appointed external auditor rudberg served audit partner five years following announcement results replaced ben marles audit partner line policy rotation audit partners committee considered given capabilities effectiveness external audit relationship burberry external audit contract put tender end current required period years next tender respect latest process led committee audit committee oversees assesses work undertaken committee monitored reviewed activities including audit plan including audit strategy scope materiality approach risk assessment including factors impacting external environment burberry business strategy approach emerging topics csrd reporting requirements corporate governance reform approach auditing controls use data analytics auditor demonstrated robust professional scepticism limited assurance work carried tcfd disclosures key data points corporate responsibility disclosures strategic report including carbon emissions supplier audits group sustainability performance separate non audit services provided reports half year full year assessing auditor demonstrated professional scepticism committee considered level objectivity demonstrated challenging group approach significant judgements estimates year committee met auditor without members management present independence effectiveness one committee primary responsibilities make recommendation appointment reappointment removal external auditor year committee assesses qualifications expertise resources independence external auditor effectiveness previous audit process course year committee reviewed audit process quality experience audit partners engaged audit satisfy received highest quality audit possible support assessment survey sent audit committee chair key members finance team members senior management team part year end process committee considered results survey concluded external audit process effective committee recommendation appointment reappointment external auditor free influence third party contractual obligations restrict committee ability make recommendation committee also reviewed proposed audit fee terms engagement details fees paid external auditor found note financial statements non audit services committee recognises independence external auditor essential part audit framework assurance provides committee adopted policy sets framework determining whether appropriate engage group auditor non audit services pre approving non audit fees policy reflects international ethics standards board accountants code ethics helps ensure high standards independence ethical behaviour applied consistently audit firms networks overall objective policy ensure provision non audit services impair external auditor independence objectivity includes limited assessing threats independence objectivity resulting provision services safeguards place eliminate reduce threats level would compromise auditor independence objectivity nature non audit services whether skills experience audit firm make suitable supplier non audit service value non audit services billed external auditor restricted cap set average audit fees preceding three years defined frc non audit services provided burberry external auditor exceed cap proposed fees approved advance chair audit committee non audit services value line group policy pre approved audit committee compliance policy engaging group auditor non audit services pre approving non audit fees reviewed monitored senior vice president internal audit risk fees must activity based success related half year year end audit committee reviews non audit services provided auditor period fees relating services year group spent million non audit services provided average group audit fees incurred last three years rationale using external auditor perform services best able provide services require reasonable fee within terms policy advisory services provided selected provide non audit related services existing knowledge experience group taken account significant non audit work performed review half year financial statements limited assurance tcfd reporting turnover certificates limited assurance certain environmental social key performance indicators details found note financial statements burberry annual report evaluation internal controls board responsible group internal controls risk management procedures details group risk management processes management mitigation principal risk together group viability statement found risk viability report pages committee discharges duties respect risk management determining nature extent principal emerging risks willing accept achieve group strategic objectives board risk appetite challenging management implementation effective processes risk identification assessment mitigation audit committee responsible reviewing effectiveness group internal controls ongoing review controls provided internal governance processes work group overseen management particularly work group internal audit team risk committee regular reports activities provided audit committee reflected standing items audit committee agenda board audit committee conducted robust assessment principal emerging risks internal control framework considered effectiveness internal controls operation across group year covered annual report accounts date approval board review covered material controls including financial operational compliance well risk management processes significant control weaknesses identified internal controls designed manage rather eliminate risk achieving business objectives provide reasonable absolute assurance material misstatement loss process followed board audit committee regularly reviewing system internal controls risk management processes complies guidance risk management internal control related financial business reporting issued frc also accords provisions code control environment business model based primarily centralised design product development supply chain distribution operations supply products global markets via retail including digital wholesale channels reflected internal control framework includes centralised direction resource allocation oversight risk management key activities marketing inventory management well brand technology development also established procedures delegation authorities ensure approval matters considered significant provided appropriate level addition policies procedures place designed support risk management across group include policies relating treasury conduct employees third parties business including prohibiting bribery corruption authorities policies procedures kept regular review group operates three lines defence model helps achieve effective risk management internal control across organisation first line defence management owns manages risk also responsible implementing corrective actions address process control deficiencies second line defence help ensure first line properly designed established operating effectively management also established various risk management compliance functions help build monitor first line defence include limited functions group risk management legal brand protection company secretariat group finance compliance health safety data protection asset profit protection business continuity third line defence group internal audit provides audit committee management independent objective assurance effectiveness governance risk management internal controls includes way first second lines defence achieve risk management control objectives internal audit group internal audit function managed senior vice president internal audit risk reports cfo independent reporting line chair audit committee scope internal audit work considered operating company group function takes account risk assessments input senior management audit committee previous audit findings example continued emphasis assurance controls manage cybersecurity risk particularly ransomware data exfiltration maturity controls projects operations including critical third parties also continued focus assessing maturity controls core processes inventory management finance supply chain digital legal human resources changes group risk profile considered ongoing basis amendments made internal audit plan necessary year proposed changes plan discussed cfo reported audit committee effectiveness group internal audit assessed every five years latest review completed april ongoing visibility internal control environment provided internal audit reports management audit committee reports graded reflect overall assessment control environment review significance control weaknesses including fraud risk identified remedial actions address findings identified agreed management audit committee places emphasis actions taken result internal audits regular reports provided audit committee status overdue actions burberry annual report corporate governance statement report audit committee financial reporting management responsible establishing maintaining adequate internal controls financial reporting designed provide reasonable assurance regarding reliability financial reporting preparation financial statements external reporting purposes comprehensive planning budgeting forecasting monthly reporting management review processes place summary financial results supported commentary performance measures provided board month relation preparation group financial statements controls place include centre expertise responsible reviewing new developments reporting requirements standards ensure reflected group accounting policies financial statements disclosures global finance function governance structure consisting colleagues appropriate expertise ensure group policies procedures correctly applied effective management control finance function achieved finance leadership team comprising key finance colleagues regions burberry business services london headquarters financial reporting process supported transactional consolidation finance systems reviews financial controls carried senior members finance function results reviews considered audit committee part monitoring performance controls governing financial reporting audit committee reviews application financial reporting standards significant accounting judgements made management matters also discussed external auditor fair balanced understandable whole annual report accounts required fair balanced understandable provide information necessary shareholders assess group position performance business model strategy behalf board audit committee considered whether fair balanced understandable statement could properly given behalf directors processes followed provide committee assurance considered committee provided recommendation board fair balanced understandable statement could given behalf directors based recommendation board satisfied met obligation summary directors responsibilities relation financial statements set page independent auditor report pages includes statement concerning auditor reporting responsibilities summary meetings committee typically meets four times year committee held five meetings agenda items discussed summarised table details attendance committee meetings set page may reviewing integrity group financial statements preliminary results statement reviewing year end key accounting judgements estimates external auditor year end audit results report internal audit update reviewing internal audit forward plan risk internal controls reviewing group internal financial operational compliance controls risk identification management process reviewing company going concern viability statement prior approval board consideration group tcfd disclosures corporate governance code compliance effectiveness external auditor july readiness esg regulations preparations provision corporate governance code review design product development operational processes inventory shrinkage controls review burberry annual report november half year financial reporting matters external auditor review half year planning risk management update including review principal risks disclosure half year results internal controls update fraud risk assessment internal audit update forward plan legal risk update ethics committee update review supply chain human rights february report forensic review causes recent business performance external audit lead audit partner rotation march pre year end update significant judgements estimates disclosures external audit control update observations tax update approval tax strategy treasury update policy review esg reporting including update csrd omnibus proposals tcfd disclosures risk management including review principal emerging risks internal audit update review governance matters including committee terms reference update subsidiary company accounts cybersecurity update review financial reporting matters burberry annual report dear shareholder pleased present directors remuneration report year ended march approved remuneration committee committee board business context challenging year burberry disappointing start year led first half operating loss suspension dividend however refreshed management team led new ceo joshua schulman stabilised business put place burberry forward strategic plan reignite brand desire improve performance drive long term value creation board encouraged improvements seen customers responding new timeless british luxury brand expression seen improvement brand sentiment operating difficult macroeconomic backdrop still early stages transformation confident actions josh leading position business return sustainable profitable growth time ceo transition context july josh joined burberry new ceo replacing jonathan akeroyd stepped left company mutual agreement board josh extensive experience luxury fashion outstanding record building global luxury brands american national josh joined burberry track record driving transformative growth value creation ceo global luxury fashion retail businesses josh previously ceo fashion brands michael kors coach also served brand president prior neiman marcus group president bergdorf goodman also served ceo jimmy choo held senior leadership roles yves saint laurent gucci corporate governance statement directors remuneration report directors remuneration report danuta gray chair remuneration committee areas focus ceo transition shareholder engagement executive reward broader employee reward external environment external reporting details agenda items discussed committee meeting set page still early stages transformation confident actions josh leading position business return sustainable profitable growth time burberry annual report ceo remuneration arrangements board determined josh extensive experience luxury fashion would instrumental revitalising burberry performance shareholders interests remuneration package offered sufficient attractive enough recruit ceo josh calibre talent market remaining within structure shareholder approved directors remuneration policy corporate governance expectations designing remuneration package committee also conscious luxury talent market proven high calibre leaders small limited listed luxury companies globally many peers privately owned organisations setting josh remuneration committee carefully considered market practice two key reference points listed companies similar size complexity burberry global luxury competitors committee mindful listed luxury peers considerably larger burberry listed headquartered outside subject different investor expectations therefore committee sought simply match median either peer group rather taken holistic approach ensure overall remuneration levels set appropriately josh salary set entitled standard benefits pension allowance salary aligned arrangements majority workforce receive cash benefits allowance predecessor received means overall level fixed pay broadly unchanged josh incentives set line predecessor maximum annual bonus salary annual burberry share plan bsp award salary line directors remuneration policy based internal policy international relocations josh eligible receive reasonable costs associated relocation new york london support provided limited period time focused initially josh move london provision housing allowance months details regarding josh relocation support set page ceo bonus considering approach bonus committee mindful importance recruiting ceo would able address challenges facing burberry need incentivise achieve short term actions navigate burberry challenges lay foundations future success mind performance measures chosen josh eligibility bonus full financial year recognising would employed majority reflected position company supported initial turnaround focus committee agreed would inappropriate disincentivising josh bonus subject original targets set start year predecessor especially given rapidly changing business context fact josh involvement developing original business plan taking account significant challenges uncertainty time committee determined would appropriate modify josh bonus entirely dependent key operational strategic measures committee critically assessed extent performance operational strategic measures achieved recognising excellent progress josh made committee determined would receive annual bonus representing maximum bonus required use net bonus acquire burberry shares satisfied shareholding guideline salary details josh performance committee assessment set page typical bonus framework used outlined page ceo recruitment award set committee mindful importance setting remuneration package would sufficient attract ceo josh calibre would recognise fact hired market would deliver strong alignment shareholders outset remuneration committee membership meeting attendance year committee member member since meeting attendance danuta gray chair december fabiola arredondo march sam fischer november ron frasch september orna níchionna january alan stewart july committee members attended scheduled meetings absences noted due meetings held short notice burberry annual report corporate governance statement directors remuneration report remuneration decisions cfo annual bonus outcome annual bonus cfo based adjusted operating profit performance strategic objectives adjusted operating profit million million cer threshold target result payout profit element based assessment strategic objectives committee determined kate ferry would receive annual bonus representing maximum bonus committee considered level bonus payout would appropriate recognition contribution challenging year key role played development delivery initial stages burberry forward kate use net bonus acquire burberry shares bsp award outcome bsp awards granted vest july current executive directors employed burberry bsp awards granted awards due vest bsp awards granted participants vest july aligning management population shareholder interests bsp awards granted year july company granted bsp awards executive directors management population prior grant committee carefully considered impact share price number shares due granted determined would better able judge whether windfall gain occurred vesting rather grant committee original intention set last year directors remuneration report therefore maintain awards normal levels however recognition extreme share price volatility experienced following first quarter trading update ceo transition announcements mid july committee exercised discretion align award price grant average price determined longer period business days july announcements effectively reduced number shares granted bsp participants including executive directors addition committee continue monitor share price changes consider whether would appropriate scale back awards point vesting disclosed annual report framework developed assist committee identifying whether executive directors benefited windfall gains details provided page committee therefore agreed grant josh share award maximum face value salary committee noted level award median value buy awards granted ftse ceos last four years performance based incentive stretching performance targets measured three years designed specifically recruit josh align interests shareholders incentivising deliver growth share price performance targets award directly linked shareholder value creation burberry total shareholder return tsr performance maximum target requires burberry share price double base price anticipated would result burberry entering ftse level performance attained exceeded time recruitment award vests would evidence positive direction burberry forward strategy josh leadership based historic analysis tsr performance ftse luxury peers expect tsr required achieve maximum vesting would represent upper decile performance details regarding josh recruitment award set pages shareholder consultation committee places great importance views shareholders recognises benefits ongoing open dialogue therefore consulted major shareholders key proxy bodies following josh appointment explain context around recruitment remuneration arrangements would like take opportunity thank many shareholders took part consultation exercise committee pleased find majority shareholders appreciated circumstances josh recruitment supportive design josh ongoing remuneration arrangements approach annual bonus recruitment award committee mindful feedback received shareholders consultation took account determining final level bonus payout former ceo jonathan akeroyd left burberry july treated accordance directors remuneration policy received salary cash benefits allowance pension allowance july thereafter eligible receive payment lieu months notice comprising salary cash benefits allowance pension allowance paid equal monthly instalments subject mitigation entitled annual bonus unvested share awards lapsed full departure received payment lieu accrued untaken annual leave provided reasonable assistance prepare file tax returns respect tax years company also arranged continuation medical insurance cover jonathan family balance receive payments including loss office accordance post employment shareholding guidelines jonathan required hold burberry shares july details regarding jonathan leaving arrangements set page measure removes effect changes exchange rates compared prior period burberry annual report making payment annual corporate bonus plan instead pay one discretionary recognition award current eligible colleagues recognise thank commitment contribution start implement burberry forward strategy year committee took opportunity listen feedback colleagues reward performance burberry learn broader employee reward also improved communications make easier colleagues understand engage reward example relation benefits employee share plans march held session global workforce advisory forum dedicated reward performance burberry gave forum members opportunity provide feedback share suggestions number topics insights highly valued committee also ensure perspectives workforce considered committee meetings additional information broader workforce reward structure together alignment executive directors remuneration set page committee effectiveness committee annual performance effectiveness review undertaken part internally facilitated board effectiveness review pleased note review confirmed committee operates well provides effective support board information process set page directors remuneration policy renewal current directors remuneration policy approved agm accordance normal three year cycle due expire agm advance committee undertake full review policy ensure appropriately aligns burberry forward strategy look forward engaging shareholders year understand views remuneration burberry discuss proposed changes policy look forward receiving support directors remuneration report agm july danuta gray chair remuneration committee approach remuneration salary board fees full consideration broader context approach taken wider workforce committee agreed neither executive director would receive salary increase similarly agreed committee board respectively would increase chair fee non executive directors fees annual bonus annual bonus structure executive directors follow similar framework cfo executive directors eligible maximum bonus salary annual bonus based adjusted operating profit performance strategic measures aligned burberry forward strategy including key sustainability measures details provided page bsp awards bsp operate line directors remuneration policy consider design bsp continued use restricted share plan part full review directors remuneration policy ahead agm line approach last year ceo granted bsp award salary taking account cfo performance development role since joining burberry key part expected play executing burberry forward strategy committee decided increase bsp award salary bsp awards granted basis awards awards vest three years subject two year post vesting holding period awards continue subject performance underpins revenue roic iii brand sustainability committee considers underpins continue represent well rounded balanced approach safeguarding financial stability business delivering burberry forward strategy elevating brand details provided page broader employee reward burberry committed fair responsible employer used scaled approach pay review provide proportionately higher salary increases junior colleagues intend adopt similar approach pay review april principal partner living wage foundation accredited living wage employer implemented pay increase colleagues outside london colleagues london recommended rates set living wage foundation positively impacted approximately colleagues burberry annual report corporate governance statement directors remuneration report glance directors remuneration policy approved shareholders agm july set full directors remuneration report found annual report burberryplc com element approach approach base salary salaries july jonathan akeroyd ceo july joshua schulman ceo july kate ferry cfo full consideration broader context approach wider workforce salary increases awarded executive directors pension pensions line maximum employer pension contribution available majority workforce currently salary change benefits cash benefits allowances jonathan akeroyd ceo july kate ferry cfo allowance jonathan akeroyd pro rated reflect portion year employed burberry joshua schulman receive cash benefits allowance non cash benefits principally include private medical long term disability insurance life assurance joshua schulman received reasonable costs associated relocation new york london details set page change annual bonus maximum annual bonus salary performance measures adjusted operating profit strategic objectives set committee chair statement joshua schulman bonus modified details set page executive directors required invest net bonus burberry shares shareholding guideline met malus clawback provisions apply change maximum annual bonus opportunity performance measures ceo cfo adjusted operating profit strategic objectives burberry share plan maximum annual award levels joshua schulman ceo salary kate ferry cfo salary awards vest full three years subject achievement performance underpins subject holding period fifth anniversary grant award details performance underpins awards set page malus clawback provisions apply committee decided increase bsp award level cfo salary set page maximum annual award levels joshua schulman ceo salary kate ferry cfo salary details performance underpins awards set page recruitment award set committee chair statement joshua schulman granted recruitment award salary details including performance conditions apply recruitment award set pages shareholding guideline salary post employment shareholding guideline salary actual shareholding lower two years stepping executive director change details principles committee took account developing directors remuneration policy including provision corporate governance code set page annual report committee considers directors remuneration policy operated intended burberry annual report broader employee reward burberry burberry reward philosophy provide colleagues across group fair equitable competitive total reward remuneration framework designed support strategy inspire colleagues deliver outstanding results framework cascaded across group consists following key components base salary colleagues receive fair equitable market driven salary benefits colleagues eligible participate range market driven benefits including promoting wellbeing supporting saving retirement reward support colleagues global benefits offer includes parental leave policy providing eligible new parents weeks paid leave wellbeing days addition annual leave entitlement providing paid time year volunteering policy providing colleagues three paid volunteering days per year employee discount product sales long service awards five year milestone pension schemes available line local market practice access employee assistance programme executive director alignment executive directors receive pension allowance line rate available majority workforce eligible range market typical non cash benefits reward support colleagues review salaries annual basis pay review process pay review built scaled approach introduced pay review provided proportionately higher increases junior colleagues principal partner living wage foundation accredited living wage employer april implemented pay increase colleagues outside london colleagues london second year row recommended rates set living wage foundation executive director alignment increase base salaries executive directors variable pay colleagues eligible short term performance related pay recognise reward contribution share plans colleagues eligible participate burberry share plans recognise reward contribution enable share future success reward support colleagues making payment annual corporate bonus plan instead pay one discretionary recognition award current eligible colleagues recognise thank commitment contribution start implement burberry forward strategy evolved retail variable pay plan align reward business objectives performance metrics assessed independently enhanced payout structure provides greater recognition exceptional results additionally retail variable pay plan places emphasis role specific contributions ensuring colleagues rewarded relation areas directly influence executive director alignment following appointment ceo participated modified bonus plan cfo received bonus payout relation performance strategic objectives reward support colleagues offer following share plans burberry freeshare plan gives colleagues opportunity participate future success annual award free shares value approximately sharesave provides opportunity colleagues save monthly pay maximum per month buy shares discount market price grant burberry share plan bsp rewards approximately senior colleagues delivering long term strategy awards granted annually vest three years subject continued employment next annual vesting july executive director alignment executive directors eligible participate share plans burberry annual report corporate governance statement directors remuneration report annual report remuneration total single figure remuneration executive directors audited table sets single figure total remuneration received receivable executive directors respect prior financial year subsequent sections detail additional information element remuneration salary allowances benefits pension bonus burberry share plan bsp employee share plans prior company buy awards total total fixed remuneration total variable remuneration executive directors joshua schulman year march kate ferry year march year march former executive director jonathan akeroyd year march year march remuneration table relation joshua schulman year march relates period employment ceo july remuneration table relation kate ferry year march relates period employment cfo july remuneration table relation jonathan akeroyd year march relates period employment ceo july value shown prior company buy awards column kate ferry represents value buy awards details set directors remuneration report salary audited table details annual salaries march apply july taking account business performance broader shareholder experience committee determined annual salaries executive directors increased july budgeted salary increase workforce march july change joshua schulman kate ferry jonathan akeroyd annual salary departure burberry july pension audited pension cash allowances executive directors aligned maximum employer pension contribution available majority workforce base salary director prospective entitlement receive defined benefit pension allowances benefits audited table details cash allowances non cash benefits received executive directors accordance directors remuneration policy disclosed single figure table cash allowance private medical insurance life assurance long term disability insurance tax legal advice relocation costs executive directors joshua schulman kate ferry former executive director jonathan akeroyd values shown reflect fact joshua schulman employment commenced july values shown reflect fact jonathan akeroyd employment ceased july values shown tax legal advice column include legal fees incurred respect joshua schulman appointment jonathan akeroyd departure accordance policy wider workforce jonathan akeroyd received payment respect days untaken accrued annual leave changes benefits policies year value shown relocation costs column joshua schulman reflects costs temporary accommodation grossed tax home search assistance transportation goods connection relocation new york london joshua also eligible receive housing allowance per month gross months five months allowance included relocation costs column remainder included subsequent directors remuneration reports appropriate burberry annual report annual bonus audited executive directors eligible maximum bonus base salary cfo annual bonus based group adjusted operating profit performance cer strategic objectives including strategic operational environmental social measures details modified approach ceo annual bonus set page adjusted operating profit performance table sets targets performance achieved relation group adjusted operating profit performance measure group adjusted operating profit targets group adjusted operating profit achieved cer threshold maximum target maximum stretch maximum maximum maximum kate ferry measure removes effect changes exchange rates adjusted operating profit bonus purposes calculated using average exchange rates pro forma basis details pro forma results set page based adjusted operating profit delivered element annual bonus pay cfo strategic performance committee mindful challenges presented continuity kate provided ceo transition similarly following launch burberry forward strategy november kate worked closely joshua stabilise business implement initial stages strategic plan assessment cfo performance year committee considered kate achievements following strategic objectives delivering operating costs initiatives partnership ceo kate delivered number operating costs initiatives unlock savings resulting achievement million cost savings rigorous focus leadership contributed adjusted operating profit million million cer compared uncertain outlook interim results november key cost saving initiatives led kate partnership ceo included headcount reduction initiation cost savings programme bringing expected combined annualised savings million managing cash flow despite significantly lower profitability kate strong management working capital capital expenditure resulted free cash flow million broadly flat last year reducing inventory kate worked partnership ceo restore scarcity inventory model swift action address inventory overhang implement tighter seasonal buys resulted reduction gross inventory versus last year cer corporate funding cash management kate led efforts maintain cash balances consistent strong balance sheet investment grade credit rating maintained access debt capital markets meet group trading strategic needs throughout transformation period maintained balanced portfolio debt terms maturity sources finance achieved extending million revolving credit facility rcf november securing additional million rcf march issuing million bond december bringing total amount june bond million maintaining investment grade credit rating driving people strategy kate executed ceo drive organisational clarity within finance function including making number key appointments leadership team supported ceo executing broadly across business finance colleagues expressed increased optimism engagement second half year reflected results engagement surveys committee also took account kate significant contribution stabilising business challenging period cost savings drove positioned business well exited addition played key role onboarding new ceo supporting development delivery initial stages burberry forward based committee assessment performance strategic measures element pay cfo annual bonus outcome considering performance delivered committee determined cfo would receive annual bonus representing maximum bonus committee considered level bonus payout would appropriate taking account kate performance directors remuneration policy executive directors required invest net bonus earned burberry shares shareholding guideline salary met kate therefore invest net annual bonus burberry shares burberry annual report corporate governance statement directors remuneration report ceo annual bonus joshua eligible bonus full financial year recognising would employed majority committee mindful importance recruiting ceo would able navigate burberry challenges faced incentivising achieve short term actions well laying foundations future success set page deemed inappropriate ceo annual bonus subject original targets set start financial year predecessor therefore committee set operation ceo annual bonus entirely dependent operational strategic measures assessment ceo performance year committee considered joshua achievements following strategic objectives resetting strategic focus core product categories communicated burberry forward strategy announcement november joshua aligned product focus core categories seen evolve visual merchandising give greater prominence outerwear scarves well refresh marketing strategy detail set joshua moved pace restore scarcity inventory model swift action address inventory overhang implement tighter seasonal buys resulted reduction gross inventory versus last year cer joshua also brought discipline number new products future seasonal assortments improved year year sell spring summer collections repositioning marketing strategy joshua executed brand repositioning focus timeless british luxury mix heritage modern elements resulted positive brand momentum second half joshua delivered number marketing campaigns successful resetting improving perception burberry brand including always burberry weather outerwear campaign wrapped burberry festive campaign london love campaign burberry winter show february extremely well received delivered significant increase views press coverage total reach compared burberry winter show result saw brand desirability brand affinity reach highest level three years refreshing pricing architecture joshua worked quickly implement refreshed pricing architecture aligning prices category authority ensuring product available variety price points result autumn collection saw low single digit reduction average unit retail aur compared autumn collection intake margin improved change strategic focus new approach marketing strategy pricing architecture well received customers particularly positive sales momentum scarves outerwear categories joshua immediate actions reset brand storytelling enhance visual merchandising stores online align product focus core categories resulted significant improvement comparable retail sales second half relative first half delivering operating costs initiatives since appointment partnership cfo joshua accelerated pace delivery number operating cost initiatives unlock savings resulting achievement million cost savings key cost saving initiatives second half included headcount reduction initiation cost savings programme bringing expected combined annualised savings million driving people strategy joshua moved quickly drive organisational clarity make changes leadership structure deliver burberry forward strategy put customer centre everything swiftly made number key appointments enhance executive team simplified organisational structure return refurbished global headquarters horseferry house london complete reuniting creative commercial teams enhance collaboration productivity initial response colleagues joshua positive especially relation leadership style authenticity clarity vision borne feedback joshua burberry forward strategy january march meetings global workforce advisory forum colleagues also expressed optimism engagement surveys since joshua appointment well delivery strategic objectives joshua moved pace execute turnaround advance strategy reignite brand desire improve performance drive long term value creation following appointment worked quickly stabilise business uncertain macroeconomic backdrop luxury slowdown established positive relationships investors focus controlling costs focused trading improved marketing contributed adjusted operating profit million million cer compared uncertain outlook interim results november actions positioned business well exited although much work execution strategy joshua made immediate impact business ensuring moved positive momentum based assessment joshua performance taking consideration feedback received shareholders consultation committee determined would appropriate ceo receive bonus representing maximum bonus joshua met shareholding guideline salary invest net annual bonus burberry shares burberry annual report annual bonus executive directors eligible maximum bonus salary annual bonus based group adjusted operating profit performance cer strategic measures aligned burberry forward strategy including key sustainability measures adjusted operating profit targets considered commercially sensitive disclosed directors remuneration report strategic objectives ceo cfo include measures linked burberry forward assessing performance area committee consider key measures linked strategy including customer brand product distribution culture cost sustainability strategic measure committee determine payout round taking account progress year details progress achieved committee determination bonus outcomes provided directors remuneration report directors remuneration policy executive directors required invest net bonus earned burberry shares shareholding guideline salary met long term incentive plan awards following section sets details bsp awards vesting based performance bsp awards granted bsp awards granted bsp awards vesting subject performance underpins audited neither executive director role bsp awards granted therefore bsp awards vest executive directors based performance bsp awards granted audited committee granted bsp award salary joshua schulman salary kate ferry july line directors remuneration policy approved shareholders agm table summarises bsp share awards granted executive directors type award basis award shares awarded face value grant performance underpin period joshua schulman bsp share award salary years march kate ferry bsp share award salary years march jonathan akeroyd granted bsp award following departure july bsp awards granted executive directors vest full three years grant date subject performance underpins outlined page awards subject two year holding period total time horizon sale shares except cover tax liabilities arising award five years entire award number shares vest include additional shares respect dividend equivalent payable award prior bsp grant date committee carefully considered impact share price number shares due granted determined would better able judge whether windfall gain occurred vesting rather grant set last year directors remuneration report committee original intention maintain bsp awards normal levels however committee continued monitor share price grant date recognition share price volatility experienced following first quarter trading update ceo transition announcements july determined exercise discretion align award price grant average price calculated longer period business days july effectively reduced number shares granted bsp participants including executive directors addition committee continue monitor share price changes consider whether would appropriate scale back awards point vesting disclosed last year framework developed assist committee identifying whether executive directors benefited windfall gains burberry annual report corporate governance statement directors remuneration report bsp awards subject following performance underpins bsp award performance underpins details revenue level total revenue cer least million roic level group roic reported exchange rates least group weighted average cost capital wacc time vesting group wacc time award brand sustainability strategies reasonable progress achieved vesting period respect strategy elevate brand build sustainable future brand assessing brand underpin committee consider performance range relevant brand kpis may include full price sales outerwear leather goods sales progress brand elevation may also include relevant metrics metrics considered aligned strategy elevating brand generate long term value shareholders sustainability assessing sustainability underpin committee consider whether reasonable progress delivered sustainability carbon reduction goals company meet one performance underpins outlined committee would consider whether appropriate scale back level payout bsp award intention performance underpins provide safeguard ensure bsp awards pay company underperformed vesting justified committee take intention account assessing underpins addition underpins described committee also retains discretion adjust vesting outcome considered reflective underlying financial non financial performance business performance individual underpins longer considered appropriate vesting outcome considered appropriate context experience shareholders stakeholders bsp awards granted committee intends grant bsp awards salary executive directors set committee chair statement page committee decided increase cfo award salary recognition performance development role since joining burberry well key part expected play executing burberry forward strategy committee carefully considered impact share price number shares granted bsp shareholder guidance relation committee considered would better able judge whether executive directors benefited windfall gain vesting using windfall gain framework developed support committee committee continue monitor share price time grant award july awards vest full three years following date grant subject performance underpins awards subject two year holding period total time horizon sale shares except cover tax liabilities arising award five years entire award number shares vest include additional shares respect dividend equivalent payable award company meet one performance underpins outlined page committee would consider whether appropriate scale back level payout bsp award committee would retain discretion determine appropriate level scale back burberry annual report committee reviewed performance underpins determined underpins applied previous bsp awards continue reflect good overall balance safeguarding financial stability business delivery strategy elevation brand committee also reviewed level bsp underpins taking account purpose act safeguard ensure awards pay company underperformed opposed stretching performance targets light challenging macroeconomic environment commercial context burberry committee updated revenue roic underpins bsp awards ensure relevant appropriate following performance underpins apply bsp awards bsp award performance underpins details revenue level total revenue cer least million roic reasonable progress achieved vesting period respect group return invested capital taking account group weighted average cost capital group wacc currently brand sustainability strategies reasonable progress achieved vesting period respect brand sustainability strategies brand committee consider progress basket brand strategy related kpis aligned burberry forward strategy sustainability committee consider whether reasonable progress achieved sustainability carbon reduction goals addition performance underpins described committee also retains discretion adjust vesting outcome considered reflective underlying financial non financial performance business performance individual underpins longer considered appropriate vesting outcome considered appropriate context experience shareholders stakeholders payments past directors payments past directors minimis limit year joining arrangements joshua schulman joshua schulman appointed burberry july joshua appointment backdrop macroeconomic uncertainty challenging time burberry setting remuneration committee mindful importance attracting ceo deep luxury fashion expertise joshua proven leader outstanding record building global luxury brands driving profitable growth board determined experience luxury fashion would instrumental revitalising burberry business therefore shareholders interests remuneration package offered sufficient attractive enough recruit ceo joshua calibre talent market joshua remuneration package set line directors remuneration policy included annual base salary pension cash allowance base salary line maximum employer contribution available majority workforce eligible receive maximum discretionary annual cash bonus base salary required invest net bonus payment burberry shares satisfied shareholding guideline salary joshua also eligible maximum bsp award base salary order ensure competitive remuneration package developed would attract joshua burberry granted recruitment award december line directors remuneration policy set grant joshua recruitment award took place following consultation exercise largest shareholders key proxy bodies enabled share context joshua recruitment remuneration arrangements understand views type award basis award shares awarded face value grant performance period joshua schulman recruitment share award salary years july face value award calculated using business day average price prior date joshua appointment number shares vest include additional shares respect dividend equivalent payable recruitment award recruitment award subject two year post vesting holding period july burberry annual report corporate governance statement directors remuneration report performance targets award directly linked shareholder value creation burberry total shareholder return tsr performance vesting award requires company meet following stretching absolute tsr targets straight line vesting threshold maximum absolute tsr targets threshold maximum maximum maximum joshua schulman absolute tsr performance measured relative base price business day average price date joshua appointment committee noted level award median value buy awards granted ftse ceos last four years joshua recruitment award granted facilitate recruitment pursuant listing rule bespoke terms similar terms bsp except individual limit awards disapplied shares vesting recruitment award subject sales tax holding requirement july clawback december number shares recruitment award basis determining joshua entitlement shares terms relating adjustment capitalisation issue rights issue open offer subdivision consolidation reduction capital variation capital cannot altered joshua advantage without prior approval shareholders general meeting except minor amendments benefit administration award take account change legislation obtain maintain favourable tax exchange control regulatory treatment joshua burberry recruitment award pensionable terms bsp rules apply recruitment award committee carefully considered award satisfied circumstances reasonable attract ceo joshua calibre market appropriately structured align shareholders outset recruitment award reported single figure table line directors remuneration policy based internal policy international relocations joshua eligible receive reasonable costs associated relocation new york london details set page addition joshua eligible receive benefits including private medical insurance life assurance long term disability insurance employee discount reasonable assistance tax returns participation employee share plans joshua granted buy awards leaving arrangements jonathan akeroyd jonathan akeroyd left burberry july paid salary cash benefits allowance pension allowance received contractual benefits date shown single figure table page thereafter eligible receive payment lieu months notice comprising salary cash benefits allowance pension allowance paid equal monthly instalments subject mitigation receive annual bonus respect unvested share awards lapsed departure burberry accordance policy wider workforce received payment respect untaken accrued annual leave also provided reasonable assistance prepare file tax returns respect tax years company also arranged private medical insurance jonathan family continued balance jonathan receive payments including loss office former executive director jonathan required comply burberry post employment shareholding guideline respect share awards vested date agm july details jonathan shareholding guideline compliance march set page burberry annual report share interests shareholding guideline audited executive directors subject shareholding guideline base salary specific timeline shareholding guideline must achieved however expectation executive directors make annual progress towards guideline regardless annual bonus paid shares vesting line investment association best practice guidance shareholding guideline permits incentive shares vested unexercised yet vested subject performance conditions underpins count towards shareholding requirement face value members executive committee also subject shareholding guideline following table sets total beneficial interests executive directors connected persons ordinary shares burberry group plc march well progress shareholding guideline table also summarises conditional interests share option awards detail underlying awards subsequent table based three month average share price march standard approach assessing guideline neither joshua schulman kate ferry met guideline joined burberry relatively recently demonstrated progress towards guideline beneficially held shares share option awards number shares beneficially owned march salary shareholding guideline salary guideline met march vested unexercised awards unvested subject performance conditions recruitment award unvested subject performance underpins bsp awards unvested subject continued employment executive directors joshua schulman kate ferry former executive director jonathan akeroyd changes period including may based three month average share price march line shareholding guideline face value shares counts towards executive director shareholding guideline calculation shares employee share incentive plan sip held beneficially count towards executive director shareholding guideline calculation also includes sharesave options count towards executive director shareholding guideline calculation table shows jonathan akeroyd shareholding july employment ended reflects lapse unvested share awards shareholding guideline calculation based three month average share price prior date june final tranche jonathan buy award vested net number shares included additional shares respect dividend equivalent payable award former executive directors jonathan akeroyd julie brown required comply burberry post employment shareholding guideline respect share awards vested date agm july guideline jonathan expected retain shareholding shares july julie expected retain shareholding shares april march jonathan julie complied obligation following table provides underlying detail unvested awards march included table executive director type award date grant maximum number shares options performance period vesting date joshua schulman bsp july years march july recruitment award december years july july sip december december kate ferry bsp july years march july bsp july years march july sharesave december february sip december december sip december december performance underpins bsp award set page annual report performance underpins bsp award set page performance conditions recruitment award granted joshua schulman set pages vested bsp awards may normally sold five years date grant meet tax liabilities december kate ferry granted sharesave option shares option price per share burberry annual report corporate governance statement directors remuneration report director remuneration relative employees table summarises change director base salary fee benefits bonus received compared prior year regulations require disclosure data employees parent company however burberry group plc employees therefore table includes data respect employee population reference year year change salary fee allowances benefits bonus executive directors joshua schulman kate ferry non executive directors gerry murphy fabiola arredondo alessandra cozzani sam fischer ron frasch danuta gray orna níchionna antoine saint affrique alan stewart former directors jonathan akeroyd debra lee employees comparator group includes employees noted burberry group plc employees therefore group chosen align location executive directors pay ratio reporting comparator group employees year year salary changes include annual salary review july exclude additional changes made year example promotion benefits maximum employer pension contribution available majority workforce increased salary salary effect january change value benefits shown executive directors reflects market cost benefits order provide meaningful comparison figures table calculated full year equivalent basis directors served part year director appointed financial year possible calculate percentage change shown executive directors receive annual bonus therefore possible calculate percentage change bonus respect jonathan akeroyd receive annual bonus therefore possible calculate percentage change bonus respect directors role time voluntarily agreed waive salary base fee three month period april june reflected negative changes shown respect corresponding positive changes shown respect allowances benefits figures gerry murphy orna níchionna low due impact covid order provide meaningful comparison percentage change figure calculated relative allowances benefits figure allowances benefits increased non executive directors due return regular person meetings orna níchionna appointed senior independent director effect april danuta gray replaced orna níchionna remuneration committee chair september alan stewart replaced matthew key audit committee chair july jonathan akeroyd left burberry july debra lee stepped board july joshua schulman appointed ceo july burberry annual report ceo pay ratios ratios set table compare total remuneration ceo included single figure table page remuneration median employee well employees lower upper quartiles disclosure build time cover rolling year period year method percentile pay ratio median pay ratio percentile pay ratio option option option option option option option notes regarding calculation ratios calculated using option disclosure regulations employees lower quartile median upper quartile respectively determined based total remuneration using valuation methodology consistent used ceo single figure table page employees identified based employees year end option selected basis provided accurate method identifying lower quartile median upper quartile employees line regulations ceo total remuneration respect calculated total jonathan akeroyd remuneration july joshua schulman remuneration july total remuneration respect employees identified respectively base salary respect employees identified respectively committee considers pay ratios one many reference points considering remuneration throughout group pay positioned fair market competitive context talent market relevant role fairly reflecting local market data relevant benchmarks real living wage committee notes limited comparability pay ratios across companies sectors given diverse range business models employee population profiles exist across market significant proportion ceo total remuneration delivered variable remuneration particularly via long term share incentives order drive alignment shareholders value ultimately received share incentive awards linked long term share price movement result pay ratio likely driven largely ceo incentive outcomes may therefore fluctuate significantly year year basis pay ratio increased compared ratio reflects fact jonathan akeroyd receive annual bonus role receive bsp award vested respect therefore ceo total remuneration included fixed elements pay increase pay ratio primarily driven fact joshua schulman received target bonus year resulting larger single figure compared committee considers median pay ratio recent trends pay ratios consistent burberry remuneration framework reflect variable nature ceo total remuneration committee believes pay ratio consistent pay policies burberry annual report corporate governance statement directors remuneration report relative importance spend pay table sets total payroll costs employees compared total dividends amounts paid buy back shares year average number full time equivalent employees also shown context relative importance spend pay dividends paid year total change amounts paid buy back shares year change payroll costs employees change average number full time equivalent employees change dividends paid year reflect final dividend paid august service agreements table sets information service agreements current executive directors executive directors subject annual election shareholders agm company date current service agreement date employment commenced notice period burberry joshua schulman july july months kate ferry march july months non executive directors serve letters appointment company non executive directors may continue serve subject annual election shareholders agm company subject six months notice either party burberry annual report increase decrease burberry ftse ten year performance graph chief executive officer remuneration following graph shows total shareholder return tsr burberry group plc compared ftse index assuming invested march ftse index selected comparator burberry constituent index majority period shown data presented spot basis sourced datastream table shows total remuneration earned incumbent ceo year period along percentage maximum opportunity earned relation type incentive total amounts based methodology used single figure total remuneration page total remuneration bonus maximum bsp maximum legacy incentive plans longer operation esp maximum cip maximum rsp maximum exceptional award maximum christopher bailey chief creative officer ceo may july marco gobbetti ceo july december jonathan akeroyd ceo march july joshua schulman ceo july cip burberry investment plan long term incentive plan final performance based awards granted details plan found relevant directors remuneration reports exceptional award christopher bailey relates vesting exceptional share award previously disclosed burberry annual report corporate governance statement directors remuneration report non executive director remuneration audited table sets single figure total remuneration received receivable non executive directors respect prior financial year year march year march fees benefits allowances total fees benefits allowances total non executive directors gerry murphy fabiola arredondo alessandra cozzani sam fischer ron frasch danuta gray orna níchionna antoine saint affrique alan stewart former non executive director debra lee fees include base fee additional fees payable senior independent director audit committee chair remuneration committee chair line existing directors remuneration policy non executive directors chair allowances include attendance allowance meeting attended outside country territory residence non executive directors appointed may currently receive per meeting non executive directors appointed may currently receive meetings involve inter continental travel meetings outside country territory residence allowances also include reimbursement certain expenses incurred non executive directors performance duties deemed revenue customs hmrc subject income tax tax liabilities arising reimbursement costs settled company amounts disclosed estimated grossed appropriate tax rate necessary fees alessandra cozzani relation relate period september appointed board fees alan stewart relation include audit committee chair fee july fees debra lee relate period july stepped board summary non executive director fees following review chair fee base fee non executive directors remain unchanged effect july fee structure non executive directors set table fee level chair non executive director senior independent director audit committee chair remuneration committee chair attendance allowance chair eligible committee related fees attendance allowances non executive directors chair allowances include attendance allowance meeting attended outside country territory residence non executive directors appointed may currently receive per meeting non executive directors appointed may currently receive meetings involve inter continental travel meetings outside country territory residence expenses incurred normal course business reimbursed considered hmrc taxable benefits tax due also met company burberry annual report non executive director shareholdings audited table summarises total interests non executive directors connected persons ordinary shares burberry group plc march date stepping earlier line shareholding guideline non executive directors hold shares market value acquisition year appointment march date stepping earlier non executive directors served one year since appointment fulfilled guideline total number shares owned non executive directors gerry murphy fabiola arredondo alessandra cozzani sam fischer ron frasch danuta gray orna níchionna antoine saint affrique alan stewart former non executive director debra lee changes total number shares owned period including may remuneration committee committee membership danuta gray fabiola arredondo sam fischer ron frasch orna níchionna alan stewart served members committee throughout year ended march committee remit committee terms reference published burberryplc com addition setting remuneration executive directors committee continues directly oversee remuneration arrangements executive committee company secretary members senior management within remit determined time time burberry annual report corporate governance statement directors remuneration report summary meetings committee typically meets four times year committee held seven meetings hoc discussions held required details attendance committee meetings set page committee members unable attend meeting given opportunity discuss agenda items committee chair advance meeting agenda items discussed seven meetings summarised committee matters including remuneration arrangements executive committee members others within committee remit determined committee outside scheduled meetings may update external environment independent advisors incentive outcomes performance targets incentive awards bsp awards including performance underpins executive directors senior executive remuneration chair fees approval directors remuneration report update share plan dilution early july remuneration aspects ceo transition late july bsp awards including award price participants performance underpins ceo review external independent advisors september agm season shareholder proxy body feedback recruitment award ceo performance conditions annual bonus plan strategic objectives ceo appointment external independent advisors november update external environment independent advisors recruitment award ceo shareholder engagement remuneration incentives performance update employee share plan awards committee annual planner december recruitment award ceo shareholder engagement remuneration march update external environment independent advisors incentives performance update annual bonus plan proposals proposed bsp awards approach directors remuneration report overview broader employee reward feedback march meeting global workforce advisory forum gender ethnicity pay gap report reporting year overview timeline renewal directors remuneration policy agm update executive committee members shareholding guideline compliance review committee terms reference regular attendees committee meetings include chair board ceo company secretary chief people officer vice president reward representatives committee advisors members senior management team may attend committee meetings time time attendees present remuneration discussed burberry annual report advisors committee deloitte appointed independent advisor committee reappointed following competitive tender process deloitte founding member remuneration consultants group rcg responsible development maintenance voluntary code conduct clearly sets role executive remuneration consultants professional standards advise clients fees charged time expenses basis totalled plus vat year deloitte also provided consulting services tax compliance advisory services committee satisfied advice received deloitte year objective independent individuals provided remuneration advice committee connections burberry directors may impair independence committee reviewed potential conflicts interest judged appropriate safeguards conflicts committee also obtained independent advice farient advisors executive compensation consultancy farient member rcg fees charged time expenses basis totalled plus vat committee satisfied advice received farient advisors year objective independent individuals provided remuneration advice committee connections burberry directors may impair independence committee reviewed potential conflicts interest judged appropriate safeguards conflicts september committee ran competitive tender process appointment committee advisors following deloitte reappointed linklaters llp also provided advice committee relation operation company share plans employment law considerations compliance legislation remuneration voting results table shows results latest remuneration related shareholder votes directors remuneration report directors remuneration policy agm voting results votes votes votes withheld approve directors remuneration report year ended march agm approve directors remuneration policy agm committee continue value input shareholders help inform thoughts executive remuneration burberry going forward part commitment build constructive dialogue established look forward continuing engage receiving support agm july report approved board signed behalf danuta gray chair remuneration committee may burberry annual report substantial shareholdings march company notified rule disclosure guidance transparency rules following major interests issued share capital number shares held total voting rights lindsell train limited massachusetts financial services company schroders plc date notification company april company notified norges bank holds shares representing total voting rights company received notifications major interests issued share capital since march interests shares details group interests shares set note financial statements share buyback reporting period share buyback programmes undertaken authority granted shareholders agm remain place new authority granted shareholders agm october whichever earlier transfer shares specific restrictions size holding transfer shares directors aware agreements holders shares may result restrictions transfer securities voting rights directors current plans issue shares connection employee share plans voting share carries one vote general meetings company shares held treasury voting rights shareholder entitled attend speak vote general meeting may exercise right vote person proxy relation corporate members corporate representatives valid notification appointment proxy must received less hours relevant general meeting person named form proxy proposes vote directors may discretion determine calculating hour period account taken part day working day employees participate sip whose shares remain burberry group plc sip trust sip trust may give directions trustees vote behalf way form direction corporate governance statement directors report directors report directors present annual report audited consolidated financial statements company year ended march purposes companies act following incorporated reference shall deemed form part directors report strategic report pages corporate governance statement includes board directors corporate governance report directors remuneration report pages global ghg emissions disclosure page directors consider annual report accounts taken whole provide fair balanced understandable assessment group business necessary shareholders wider stakeholders assess development performance year position end financial year strategy likely developments principal risks uncertainties engaged people stakeholders purposes compliance disclosure guidance transparency rules required content management report found strategic report together sections annual report incorporated reference share capital details issued share capital together details movement issued share capital company year shown note financial statements incorporated reference deemed part report company one class ordinary share pence share carries right fixed income share carries right one vote general meetings company shares listed official list traded london stock exchange person special rights control company share capital issued shares fully paid march company shares issue including held treasury agm shareholders approved resolutions allot shares aggregate nominal value allot shares cash pro rata existing shareholders well resolution issue additional issued share capital pro rata existing shareholders connection acquisition specified capital investment order retain maximum flexibility resolutions proposed shareholders year agm renew authorities burberry annual report april burberry entered exclusive licensing agreement coty pursuant coty develops manufactures markets distributes sells burberry beauty products agreement took effect october time ongoing royalty payments payable burberry pursuant companies act directors disclose change control burberry limited circumstances result coty right termination licence agreement small number leases contain certain rights may entitle landlords terminate approve continuation leases event burberry subsidiary transferred group change control burberry group plc considered significant terms potential impact business whole arrangements company directors employees providing compensation loss office employment occurs specifically takeover merger amalgamation provisions company share plans could result options awards vesting becoming exercisable change control information change control provisions company share plans refer directors remuneration policy approved shareholders agm july set full directors remuneration report annual report burberryplc com independent auditor accordance section companies act company directors office date report confirms far director aware relevant audit information company external auditor unaware director taken appropriate steps ensure aware relevant audit information establish company external auditor aware information group current external auditor note financial statements states fees audit non audit work appointed external auditor company agm following independent audit tender resolution reappoint external auditor company proposed agm independent auditor report starting page sets information contained annual report audited external auditor employee share plans share ownership company committed employee share ownership two employee share plans available employees levels organisation details share plans set directors remuneration report page group intends operate employee share plans grant awards free burberry shares equivalent cash based awards appropriate eligible employees globally invite eligible employees possible participate sharesave scheme directors review operation plans ensure effectively support group strategy encourage greater alignment employees group performance details employee share plans set note financial statements dividend order improve balance sheet capacity invest burberry long term growth directors declared final dividend interim dividend recommended dividends paid respect year march million burberry group plc esop trust waived dividends future dividends payable company respect burberry shares holds company notified otherwise addition sip trust waived dividends payable company respect unappropriated shares holds revenue profit revenue continuing business year amounted million million adjusted operating profit year million million loss year attributable equity holders company million profit million year year decrease predominantly related reduction revenue bps reduction gross margin gave rise reduction adjusted operating profit adjusting items charge million resulted reduction operating loss profit increase effective tax rate driven reduced profitability resulted reduction loss taxation financial instruments risks group financial risk management objectives policies set within note financial statements note also details group exposure foreign exchange share price interest credit capital liquidity risks note incorporated reference deemed form part report going concern viability going concern statements group company set pages financial statements incorporated reference shall deemed part report directors assessment prospects viability group next three years set strategic report pages risk viability report found pages directors considered appropriate adopt going concern basis accounting preparing financial statements significant contracts change control pursuant companies act directors disclose event change control company borrowings group currently undrawn million revolving credit facility dated july could become repayable company borrowings group currently undrawn million revolving credit facility dated march could become repayable burberry annual report corporate governance statement directors report political donations company make political donations year line policy nil keeping group approach prior years shareholder approval sought forthcoming agm precautionary measure company subsidiaries make donations incur expenditure may construed political wider definition term included relevant legislation details provided notice annual general meeting notice directors names biographical details directors date report set pages incorporated reference report regard appointment resignation directors company follows code governed articles association companies act related legislation agm directors exception antoine saint affrique fabiola arredondo sam fischer stand election election appropriate notice sets contributions reasons election election director service agreements executive directors letters appointment non executive directors available inspection company registered office request brief details also included page directors remuneration report information directors training see page directors share interests interests shares directors holding office march shown within directors remuneration report pages changes beneficial interests directors period march may directors powers responsibilities subject company articles association companies act directions given special resolution business group managed board may exercise powers group including powers relating issue buying back shares group subject statutory restrictions restrictions imposed shareholders agm directors insurance indemnities company maintains directors officers liability insurance gives cover legal actions brought directors officers accordance section companies act qualifying third party indemnity provisions place directors respect liabilities incurred result office extent permitted law insurance indemnities applied throughout financial year ended march date report employee engagement burberry open inclusive employer strives open spaces people express creativity grow personally professionally colleagues represent nationalities across countries territories proud diversity people rich variety skills experiences bring brand many cultures backgrounds represent continue focus evolving strategies attracting retaining diverse top talent within business promote cultural values ensure diverse representation across business details people commitment diversity equity inclusion found pages pages demonstrate directors regard employee interests principal decisions taken company financial year stakeholder engagement reflecting importance stakeholders explanation steps taken directors foster business relationships partners including suppliers customers stakeholders set pages global ghg emissions directors understand responsibility consider impact environment likely consequences business decisions long term disclosure line fca requirements climate related financial disclosures consistent tcfd recommendations set pages health safety company global health safety policy approved ceo behalf board safety first approach firmly embedded burberry values approach strongly reinforced measured across operational activities governance health safety strategy maintained global health safety committee chaired general counsel health safety issues also considered risk committee audit committee region local health safety committee reports regional president committees assist implementation health safety strategy help ensure local regulatory burberry standards achieved maintained strategic direction health safety matters provided director health safety supported global team line industry best practice health safety goals objectives set year continually analyse performance support process continuous improvement unannounced global assurance audit programme continues measure health safety performance within managed operations set frequency tracks improvement actions risk reduction strategies closure burberry annual report branches accordance companies act group discloses subsidiary companies branches outside burberry limited hong kong china republic korea burberry brasil comércio artigos vestuário acessórios ltda brazil burberry saudi company limited kingdom saudi arabia burberry qatar qatar burberry spain retail portugal burberry shanghai trading ltd mainland china annual general meeting agm agm company held wednesday july horseferry house horseferry road london notice year agm available view company website burberryplc com directors consider proposed resolutions considered agm best interests company shareholders likely promote success company benefit shareholders whole directors unanimously recommend shareholders vote favour proposed resolutions directors intend respect shareholdings amendments articles association company articles association adopted agm changes articles association proposed year agm disclosures pursuant listing rule listing rule description listing rule reference details long term incentive schemes required uklr see pages waivers dividends see dividend paragraph page strategic report pages directors report pages approved board may accordance companies act order board gemma parsons company secretary may burberry group plc registered office horseferry house horseferry road london registered england wales registered number burberry annual report financial statements statement directors responsibilities statement directors responsibilities directors responsible preparing annual report directors remuneration report financial statements accordance applicable laws regulations company law requires directors prepare financial statements financial year law directors prepared group consolidated financial statements accordance adopted international accounting standards company financial statements accordance united kingdom generally accepted accounting practice united kingdom accounting standards comprising frs reduced disclosure framework applicable law company law directors must approve financial statements unless satisfied give true fair view state affairs group company profit loss group company year preparing financial statements directors required select suitable accounting policies apply consistently state whether applicable adopted international accounting standards followed group financial statements united kingdom accounting standards comprising frs followed company financial statements subject material departures disclosed explained group parent company financial statements respectively make judgements accounting estimates reasonable prudent present information including accounting policies manner provides relevant reliable comparable understandable information prepare financial statements going concern basis unless inappropriate presume group company continue business directors responsible keeping adequate accounting records sufficient show explain group company transactions disclose reasonable accuracy time financial position group company enable ensure financial statements directors remuneration report comply companies act also responsible safeguarding assets company group hence taking reasonable steps prevention detection fraud irregularities directors responsible maintenance integrity company website legislation united kingdom governing preparation dissemination financial statements may differ legislation jurisdictions directors consider annual report taken whole fair balanced understandable provides information necessary shareholders assess group company position performance business model strategy directors whose names functions listed pages confirm best knowledge company financial statements prepared accordance united kingdom generally accepted accounting practice united kingdom accounting standards comprising frs reduced disclosure framework applicable law give true fair view assets liabilities financial position profit company group financial statements prepared accordance adopted international accounting standards give true fair view assets liabilities financial position profit group strategic report includes fair review development performance business position group company together description principal risks uncertainties faces statements approved board may signed behalf joshua schulman kate ferry chief executive officer chief financial officer burberry annual report financial statements independent auditor report members burberry group plc independent auditor report members burberry group plc opinion opinion burberry group plc group financial statements company financial statements financial statements give true fair view state group company affairs march group loss week period ended group financial statements properly prepared accordance adopted international accounting standards company financial statements properly prepared accordance united kingdom generally accepted accounting practice financial statements prepared accordance requirements companies act audited financial statements burberry group plc company subsidiaries group week period ended march comprise group company balance sheet march balance sheet march income statement week period ended statement changes equity week period ended statement comprehensive income week period ended related notes financial statements including summary material accounting policies statement changes equity week period ended statement cash flows week period ended related notes financial statements including summary material accounting policies financial reporting framework applied preparation group financial statements applicable law adopted international accounting standards financial reporting framework applied preparation company financial statements applicable law united kingdom accounting standards including frs reduced disclosure framework united kingdom generally accepted accounting practice basis opinion conducted audit accordance international standards auditing isas applicable law responsibilities standards described auditor responsibilities audit financial statements section report believe audit evidence obtained sufficient appropriate provide basis opinion independence independent group company accordance ethical requirements relevant audit financial statements including frc ethical standard applied listed public interest entities fulfilled ethical responsibilities accordance requirements non audit services prohibited frc ethical standard provided group company remain independent group company conducting audit burberry annual report financial statements independent auditor report members burberry group plc conclusions relating going concern auditing financial statements concluded directors use going concern basis accounting preparation financial statements appropriate evaluation directors assessment group company ability continue adopt going concern basis accounting included conjunction walkthrough group financial statement close process confirmed understanding management going concern assessment process engaged management early understand assess key assumptions made assessment checked logic arithmetical integrity management going concern model includes cash forecasts going concern assessment period covering period september considered appropriateness revenue operating expense assumptions used calculate cash forecasts base case severe plausible case scenarios light current geopolitical environment uncertain global consumer demand specifically challenged management plausible downside case scenario assess sufficiently severe going concern assessment reviewed group debt agreements conditions precedent outside management control also reviewed forecast compliance covenant requirements base severe plausible downside case scenarios going concern assessment period agreed march cash cash equivalents balance included going concern assessment group year end cash cash equivalents balance reviewed borrowings group noted management include repayment sustainability bond scenarios bond repayable within going concern period assessed reasonableness cashflow forecasts included going concern assessment analysing management historical forecasting accuracy consistency going concern assessment information obtained areas audit goodwill impairment retail store impairment deferred tax asset recognition evaluated key assumptions searching contrary evidence challenge assumptions including third party sector forecasts analyst expectations tested assumptions consistency budget approved board challenged measurement completeness severe plausible scenario modelled management whether risks considered sufficiently severe compare principal risks uncertainties group considered mitigating factors available within control group included review group operating non operating cash outflows evaluating group ability control outflows mitigating actions required performed review management reverse stress test identify magnitude decline revenue would lead group utilising liquidity going concern assessment period considered likelihood decline reviewed activity subsequent events period assess contrary indicators reviewed group company going concern disclosures included annual report assess disclosures consistent basis upon board concluded conformity reporting standards based work performed identified material uncertainties relating events conditions individually collectively may cast significant doubt group company ability continue going concern period september relation group company reporting applied corporate governance code nothing material add draw attention relation directors statement financial statements whether directors considered appropriate adopt going concern basis accounting responsibilities responsibilities directors respect going concern described relevant sections report however future events conditions predicted statement guarantee group company ability continue going concern burberry annual report financial statements independent auditor report members burberry group plc overview audit approach audit scope performed audit complete financial information four components audit procedures specific balances five components performed central procedures financial statement line items detailed tailoring scope section key audit matters valuation finished goods inventory provision impairment impairment reversals retail store right use assets related property plant equipment provision uncertain tax positions materiality overall group materiality represents revenue overview scope company group audits tailoring scope current year audit scoping updated reflect new requirements isa revised followed risk based approach developing audit approach obtain sufficient appropriate audit evidence base audit opinion performed risk assessment procedures input component auditors identify assess risks material misstatement group financial statements identified significant accounts disclosures identifying components audit work needed performed respond identified risks material misstatement group financial statements considered understanding group business environment changes specific components macroeconomic geopolitical factors applicable financial reporting framework group system internal control entity level existence centralised processes applications relevant internal audit results potential impact climate change determined centralised audit procedures would performed revenue cost sales finance income expenses goodwill included within intangible assets indefinite lives right use assets lease liabilities impairment impairment reversal right use assets related property plant equipment deferred tax assets derivative financial assets liabilities inventory provision cash cash equivalents borrowings provision uncertain tax positions income tax identified nine components individually relevant group due relevant events conditions underlying identified risks material misstatement group financial statements associated reporting components pervasive risk material misstatement group financial statements significant risk area higher assessed risk material misstatement group financial statements associated components also considered materiality financial size component relative group individually relevant components identified significant accounts audit work needed performed components applying professional judgement considered group significant accounts centralised procedures would performed reasons identifying financial reporting component individually relevant component size component account balance relative group significant financial statement account balance considered whether remaining group significant account balances yet subject audit procedures aggregate could give rise risk material misstatement group financial statements determined additional components group required included identified components work would performed determined scope assign component nine components selected designed performed audit procedures entire financial information four components full scope components five components designed performed audit procedures specific significant financial statement account balances disclosures financial information component specific scope components scoping address risk material misstatement key audit matter set key audit matters section report burberry annual report financial statements independent auditor report members burberry group plc changes prior year changed specific scope components prior year include component italy increase coverage group audit involvement component teams establishing overall approach group audit determined type work needed undertaken components group audit engagement team component auditors operating instruction group audit team continued follow programme planned visits designed ensure senior statutory auditor visits virtually person least individually relevant component teams year current year audit cycle virtual visits undertaken primary audit team component teams china hong kong china korea japan senior statutory auditor also performed person visit united states america business senior statutory auditor visit component team italy work performed individually relevant component performed group audit team visits involved holding meetings local management discussing year end audit procedures performed component teams communicating procedures would performed centrally group audit team reviewing relevant working papers discussing issues arisen group audit team interacted regularly component teams appropriate various stages audit reviewed relevant working papers responsible scope direction audit process relevant section key audit matters details level involvement component auditors enable determine sufficient audit evidence obtained basis opinion group whole together additional procedures performed group level gave appropriate evidence opinion group financial statements climate change stakeholders increasingly interested climate change impact group group determined significant future impacts climate change operations climate transition risks specifically market risks associated changing consumer preferences lower carbon economy explained pages required task force climate related financial disclosures pages principal risks uncertainties climate commitments group also explained pages disclosures form part information rather audited financial statements procedures unaudited disclosures therefore consisted solely considering whether materially inconsistent financial statements knowledge obtained course audit otherwise appear materially misstated line responsibilities information planning performing audit assessed potential impacts climate change group business consequential material impact financial statements group explained note consideration climate related matters reflected impact climate change financial statements including aligns commitments sustainability strategy significant judgements estimates relating climate change audit effort considering impact climate change financial statements focused evaluating management assessment impact climate risk physical transition climate commitments specifically valuation finished goods inventory provision impairment retail store right use assets related property plant equipment assessed whether risks appropriately reflected asset values values determined modelling future cash flows following requirements adopted international accounting standards part evaluation performed risk assessment supported climate change internal specialists senior members audit team held meetings group sustainability financial reporting supply chain teams determine risks material misstatement financial statements climate change needed considered audit also challenged directors considerations climate change risks assessment going concern viability associated disclosures considerations climate change relevant assessment going concern described based work whilst identified impact climate change financial statements standalone key audit matter considered impact following key audit matters valuation finished goods inventory provision impairment impairment reversals retail store right use assets related property plant equipment details impact procedures findings included explanation key audit matters burberry annual report financial statements independent auditor report members burberry group plc key audit matters key audit matters matters professional judgment significance audit financial statements current period include significant assessed risks material misstatement whether due fraud identified matters included greatest effect overall audit strategy allocation resources audit directing efforts engagement team matters addressed context audit financial statements whole opinion thereon provide separate opinion matters risk response risk valuation finished goods inventory provision described report audit committee page accounting policies page note consolidated financial statements page management raises finished goods inventory provision reflect expected net realisable value lower carrying value finished goods inventory balance sheet date group inventory provisions representing gross value inventory march net inventory relates finished goods group determines inventory provision considering aging inventory season identifying problem inventory considering historical loss rates future sales forecasts expected channel inventory exited process inherently judgmental therefore potential management bias relation allocation inventory certain sales channels well relation future sales forecasts performed walkthrough inventory provisioning process identified understood design key controls evaluated appropriateness group inventory provisioning policy assessed inventory provision model relevant component consistency group accounting policy tested integrity accuracy inventory provisioning models inputs considering source information used management applied professional scepticism light current geopolitical environment uncertain global consumer demand performed sensitivity analysis management expected sell loss rates inventory used inventory movement data current year analysed consider inventory composition season product type used data develop expectation challenged management outliers identified understood planned sales channels exit routes surplus inventory challenged whether consistent prior periods overall sales profile group board approved forecasts used elsewhere across group considered whether evidence management bias exit routes sales forecasts used performed analytical procedures key assumptions corroborated work performed across accounts identify consider whether contrary evidence existed used data corroborate explanations management identify contrary evidence related assumptions used management identifying slow moving inventory performed sensitivity analysis assess significance risk changed assumptions provision primarily sell exit route loss rates applied included considering potential impact climate change may inventory provisioning reviewed disclosures financial statements appropriateness including requirement disclose sensitivities reasonably possible change key assumption would result material change valuation finished goods inventory provision key observations communicated audit committee satisfied finished goods inventory provisions appropriate group disclosures appropriate scoped audit respond risk involvement component teams audit work performed address risk undertaken group audit team supported overseas professionals burberry annual report financial statements independent auditor report members burberry group plc key audit matters continued risk response risk impairment impairment reversals retail store right use assets related property plant equipment described report audit committee report page accounting policies page notes consolidated financial statements pages management assess retail store right use assets related property plant equipment impairment charges reversals previous impairment charges group right use assets property plant equipment march weeks march net impairment charge judgement estimation uncertainty involved determining store forecast cash flows measure impairment charges reversals particular revenue growth profit margin assumptions light current geopolitical environment uncertain global consumer demand performed walkthrough retail store impairment process understood design key controls reviewed challenged appropriateness group impairment policy reviewed board minutes met regional commercial finance teams strategy teams general counsel determine contrary evidence existed relation future plans stores management considered whether indicators impairment charges reversals present group retail store portfolio based group latest forecast assessed completeness factors considered assessed accuracy forecasted information conjunction testing group forecasts outlined stores identified indicators impairment charge reversal group prepared value use impairment models procedures value use impairment models included assessed methodology requirements ias impairment assets tested integrity model data inputs used back source data example agreeing store right use asset related property plant equipment values back accounting records involved valuations specialists assess appropriateness discount rates used challenged assumptions used cash flow forecasts revenue growth gross margin assumptions historical results third party luxury sector forecasts latest analyst reports performed sensitivity analysis key assumptions stress testing calculations stores risk impairment challenged whether cash flow forecasts adequately factored known costs associated physical transition climate related risks cashflows required meet burberry publicly stated climate commitments assessed disclosures financial statements including requirement disclose sensitivities reasonably possible change key assumption would result material change impairment charge reversal recorded key observations communicated audit committee satisfied consideration indicators impairment methodology significant underlying assumptions judgements reasonable support management conclusion net impairment charge year also satisfied disclosure classification impairment charges scoped audit respond risk involvement component teams audit work performed address risk undertaken group audit team supported overseas professionals burberry annual report financial statements independent auditor report members burberry group plc key audit matters continued risk response risk provision uncertain tax positions described report audit committee page accounting policies page note consolidated financial statements pages group subject tax regulation multiple jurisdictions centralised operating structure group requires management exercise judgement making determinations amount tax payable group subject tax authority audits number open tax enquiries multiple jurisdictions point time result group recognised number provisions uncertain tax positions valuation requires significant assumptions judgement group recognised provisions respect uncertain tax positions march focused area due complexity subjectivity quantification provision judgement around trigger recognition release impacting provision effective tax rate performed walkthrough tax provisioning process understood design key controls evaluated appropriateness group transfer pricing uncertain tax provisioning policies met tax management understand group cross border transactions status significant matters including provided changes management judgements year read correspondence tax authorities tax opinions external advisors inform assessment recorded estimates evaluate completeness provisions recorded including direct engagement external advisors appropriate material case met external advisors understand key judgements case utilised relevant internal specialists also requested received reviewed letter directly obtained management external legal counsel independently assessed management significant assumptions judgements record release provisions following tax audits settlements expiry statute limitations tested accuracy calculation year end provisions inspecting underlying documentation supporting schedules evaluated adequacy tax disclosures financial statements including requirement disclose sensitivities reasonably possible change key assumption would result material change provision uncertain tax positions key observations communicated audit committee satisfied management judgements relation extent provisions uncertain tax positions appropriate also satisfied tax disclosures appropriate scoped audit respond risk involvement component teams audit work performed address risk undertaken group audit team supported overseas professionals specialists changes key audit matters compared prior financial year application materiality apply concept materiality planning performing audit evaluating effect identified misstatements audit forming audit opinion materiality magnitude omission misstatement individually aggregate could reasonably expected influence economic decisions users financial statements materiality provides basis determining nature extent audit procedures determined materiality group million million revenue profit tax current trading environment loss tax measure would resulted materiality expectations users financial statements therefore considered performance metrics relevant users financial statements determined revenue appropriate basis determined materiality company million million total assets company balances consolidated group financial statements allocation group performance materiality used course audit reassessed initial materiality based forecasts provided management final assessment reflected actual reported performance period burberry annual report financial statements independent auditor report members burberry group plc performance materiality application materiality individual account balance level set amount reduce appropriately low level probability aggregate uncorrected undetected misstatements exceeds materiality basis risk assessments together assessment group overall control environment judgement performance materiality planning materiality namely set performance materiality percentage due assessment group overall control environment likelihood undetected misstatements audit work undertaken component locations purpose responding assessed risk material misstatement group financial statements performance materiality set component based relative scale risk component group whole assessment risk misstatement component current year range performance materiality allocated components reporting threshold amount identified misstatements considered clearly trivial agreed audit committee would report uncorrected audit differences excess set planning materiality well differences threshold view warranted reporting qualitative grounds evaluate uncorrected misstatements quantitative measures materiality discussed light relevant qualitative considerations forming opinion information information comprises information included annual report set pages including strategic report corporate governance statement financial statements auditor report thereon directors responsible information contained within annual report opinion financial statements cover information except extent otherwise explicitly stated report express form assurance conclusion thereon responsibility read information consider whether information materially inconsistent financial statements knowledge obtained course audit otherwise appears materially misstated identify material inconsistencies apparent material misstatements required determine whether gives rise material misstatement financial statements based work performed conclude material misstatement information required report fact nothing report regard opinions matters prescribed companies act opinion part directors remuneration report audited properly prepared accordance companies act opinion based work undertaken course audit information given strategic report directors report financial period financial statements prepared consistent financial statements strategic report directors report prepared accordance applicable legal requirements matters required report exception light knowledge understanding group company environment obtained course audit identified material misstatements strategic report directors report nothing report respect following matters relation companies act requires report opinion adequate accounting records kept company returns adequate audit received branches visited company financial statements part directors remuneration report audited agreement accounting records returns certain disclosures directors remuneration specified law made received information explanations require audit burberry annual report financial statements independent auditor report members burberry group plc corporate governance statement reviewed directors statement relation going concern longer term viability part corporate governance statement relating group company compliance provisions corporate governance code specified review listing rules based work undertaken part audit concluded following elements corporate governance statement materially consistent financial statements knowledge obtained audit directors statement regards appropriateness adopting going concern basis accounting material uncertainties identified set page directors explanation assessment company prospects period assessment covers period appropriate set page director statement whether reasonable expectation group able continue operation meets liabilities set page directors statement fair balanced understandable set page board confirmation carried robust assessment emerging principal risks set page section annual report describes review effectiveness risk management internal control systems set page section describing work audit committee set pages responsibilities directors explained fully directors responsibilities statement set page directors responsible preparation financial statements satisfied give true fair view internal control directors determine necessary enable preparation financial statements free material misstatement whether due fraud error preparing financial statements directors responsible assessing group company ability continue going concern disclosing applicable matters related going concern using going concern basis accounting unless directors either intend liquidate group company cease operations realistic alternative auditor responsibilities audit financial statements objectives obtain reasonable assurance whether financial statements whole free material misstatement whether due fraud error issue auditor report includes opinion reasonable assurance high level assurance guarantee audit conducted accordance isas always detect material misstatement exists misstatements arise fraud error considered material individually aggregate could reasonably expected influence economic decisions users taken basis financial statements explanation extent audit considered capable detecting irregularities including fraud irregularities including fraud instances non compliance laws regulations design procedures line responsibilities outlined detect irregularities including fraud risk detecting material misstatement due fraud higher risk detecting one resulting error fraud may involve deliberate concealment example forgery intentional misrepresentations collusion extent procedures capable detecting irregularities including fraud detailed however primary responsibility prevention detection fraud rests charged governance company management obtained understanding legal regulatory frameworks applicable group determined significant relate reporting framework adopted international accounting standards gaap companies act corporate governance code relevant tax laws regulations jurisdictions group operates addition concluded certain significant laws regulations may effect determination amounts disclosures financial statements listing rules listing authority laws regulations relating health safety employees environmental social anti bribery corruption practices understood group complying frameworks making enquiries management including internal audit responsible legal compliance procedures company secretary corroborated enquiries review board minutes papers provided audit committee observation audit committee meetings well consideration results audit procedures across group burberry annual report financial statements independent auditor report members burberry group plc assessed susceptibility group financial statements material misstatement including fraud might occur meeting finance operational management various parts business understand considered susceptibility fraud also considered performance targets potential influence management manage earnings determined risk fraud associated risk management override controls manual revenue journals obtained understanding related party transactions significant transactions occurring related parties year considered policies processes controls group established address risks identified including design controls significant revenue stream also considered controls group otherwise prevent deter detect fraud senior management monitors controls performed audit procedures address identified fraud risk procedures designed provide reasonable assurance financial statements whole free material misstatement due fraud error based understanding designed audit procedures identify non compliance laws regulations procedures involved providing specific instructions full specific scope component teams necessary using relevant specialists procedures included journal entry testing focus manual journal entries consolidation journal entries journal entries indicating large unusual transactions using data analytics based testing understanding business enquiries management including internal audit legal advisors company secretary reading relevant reports also reviewed whistleblowing reports issued year instances non compliance laws regulations identified might impact components communicated component audit teams considered audit approach applicable addition completed procedures conclude compliance disclosures annual report accounts applicable requirements description responsibilities audit financial statements located financial reporting council website https www frc org auditorsresponsibilities description forms part auditor report matters required address following recommendation audit committee appointed company annual general meeting july audit financial statements company period ending march subsequent financial periods period total uninterrupted engagement including previous renewals reappointments five years covering periods ended march march audit opinion consistent additional report audit committee use report report made solely company members body accordance chapter part companies act audit work undertaken might state company members matters required state auditor report purpose fullest extent permitted law accept assume responsibility anyone company company members body audit work report opinions formed michael rudberg senior statutory auditor behalf ernst young llp statutory auditor london may burberry annual report financial statements group income statement group income statement weeks ended march note weeks march weeks march revenue cost sales gross profit operating expenses operating income net operating expenses operating loss profit financing finance income finance expense net finance expense loss profit taxation taxation loss profit year attributable owners company non controlling interest loss profit year loss earnings per share basic diluted reconciliation adjusted profit taxation loss profit taxation adjusting operating items net operating expenses adjusted loss profit taxation non gaap measure adjusted loss earnings per share non gaap measure basic diluted dividends per share interim proposed final recognised liability march march burberry annual report financial statements group statement comprehensive income group statement comprehensive income weeks ended march note weeks march weeks march loss profit year comprehensive loss income cash flow hedges foreign currency translation differences tax comprehensive income comprehensive loss year net tax total comprehensive loss income year total comprehensive loss income attributable owners company non controlling interest items included comprehensive income may subsequently reclassified profit loss future period burberry annual report financial statements group balance sheet group balance sheet weeks ended march note march march assets non current assets intangible assets property plant equipment right use assets deferred tax assets trade receivables current assets inventories trade receivables derivative financial assets income tax receivables cash cash equivalents assets held sale total assets liabilities non current liabilities trade payables lease liabilities borrowings deferred tax liabilities derivative financial liabilities provisions liabilities charges current liabilities trade payables bank overdrafts lease liabilities borrowings derivative financial liabilities income tax liabilities provisions liabilities charges total liabilities net assets equity capital reserves attributable owners company ordinary share capital share premium account capital reserve hedging reserve foreign currency translation reserve retained earnings equity attributable owners company non controlling interest equity total equity consolidated financial statements burberry group plc registered number pages approved authorised issue board may signed behalf joshua schulman kate ferry chief executive officer chief financial officer burberry annual report financial statements group statement changes equity group statement changes equity weeks ended march attributable owners company note ordinary share capital share premium account reserves retained earnings total non controlling interest total equity balance april profit year comprehensive income cash flow hedges foreign currency translation differences tax comprehensive income total comprehensive income year transactions owners employee share incentive schemes equity share awards tax share awards exercise share options purchase shares share buyback dividends paid year balance march loss year comprehensive income cash flow hedges foreign currency translation differences total comprehensive loss year transactions owners employee share incentive schemes equity share awards dividends paid year balance march burberry annual report financial statements group statement cash flows group statement cash flows weeks ended march note weeks march weeks march cash flows operating activities loss profit tax adjustments reconcile profit tax net cash flows amortisation intangible assets depreciation property plant equipment depreciation right use assets impairment charge intangible assets impairment charge property plant equipment impairment charge right use assets loss disposal intangible assets gain modification right use assets gain loss derivative instruments charge respect employee share incentive schemes net finance expense working capital changes decrease increase inventories decrease increase receivables decrease payables provisions cash generated operating activities interest received interest paid taxation paid net cash generated operating activities cash flows investing activities purchase property plant equipment purchase intangible assets proceeds sale property plant equipment initial direct costs right use assets proceeds termination lease payment respect acquisition subsidiary net cash outflow investing activities cash flows financing activities dividends paid year proceeds borrowings payment deferred consideration acquisition non controlling interest payment lease principal payment termination lease issue ordinary share capital purchase shares share buyback purchase shares share buyback stamp duty fees net cash inflow outflow financing activities net increase decrease cash net overdrafts effect exchange rate changes cash net overdrafts beginning year cash net overdrafts note weeks march weeks march cash cash equivalents bank overdrafts cash net overdrafts burberry annual report financial statements notes financial statements basis preparation burberry group plc subsidiaries group global luxury goods manufacturer retailer wholesaler group also licenses third parties manufacture distribute products using burberry trademarks companies comprise group controlled burberry group plc company directly indirectly consolidated financial statements group prepared accordance requirements companies act adopted international accounting standards ifrs consolidated financial statements prepared historical cost convention except modified revaluation certain financial assets financial liabilities fair value consolidated financial statements presented financial ratios calculated using unrounded numbers consideration climate related matters group performed climate related scenario analysis required task force climate related financial disclosures scenario analysis takes consideration different climate related scenarios including lower scenario based scenario analysis consideration given impact climate related risks management judgements estimates including inventory provisions impairment property plant equipment right use assets incurred costs investments associated sustainability strategy reflected group financial statements including within inventories property plant equipment operating profit impact climate related risks consolidated financial statements weeks march material last year material due time horizons physical risks expected significant aligning useful lives assets investments continue make mitigate market policy risks committed future financial investments associated sustainability strategy included within budget three year forward looking financial plans financial plans used support impairment reviews going concern viability assessment future plans may incur additional investment research development higher expenditure raw materials yet unidentified costs going concern considering appropriateness adopting going concern basis preparing financial statements directors assessed potential cash generation group assessment covers period minimum months date signing financial statements directors also considered forecast period september indicators going concern basis preparation appropriate scenarios considered directors include severe plausible downside scenario reflecting group base plan adjusted severe plausible impacts group principal risks central planning scenario informed comprehensive review macroeconomic scenarios using third party projections macroeconomic data luxury fashion industry reflects current uncertain outlook group central planning scenario reflects balanced projection continued focus stabilise business position brand profitable sustainable growth sensitivity central planning scenario stressed reflect aggregation severe impacts arising linked principal risks total represents downgrade revenues month period september well associated consequences ebitda cash management considers represents severe plausible downside scenario appropriate assessing going concern severe plausible downside modelled following risks occurring simultaneously severe prolonged reduction gdp growth assumptions across markets operate combined reduction global consumer demand arising change consumer preference compared central planning scenario increase geopolitical tension leads incremental unmitigated tariff risks compared central planning scenario significant reputational incident negative sentiment propagated social media impact business interruption event resulting two week interruption arising supply chain impact interruption one channels occurrence one time physical risk relating climate change materialisation severe plausible ongoing market risk relating climate change line scenario reflecting global temperature increase compared pre industrial levels payment settlement arising regulatory compliance related matter impact delivering anticipated cost savings burberry forward transformation programme short term impact weakening key non sterling currency group recovered price adjustment burberry annual report financial statements notes financial statements basis preparation continued going concern continued mitigating actions within management control would taken scenario including working capital reduction measures limiting capital expenditure variable marketing costs directors also considered group current liquidity available facilities march group balance sheet reflects cash net overdrafts million addition group access million revolving credit facility million rcf matures november million revolving credit facility million rcf matures march currently undrawn million sustainability bond matures within going concern period september group central planning scenario includes repayment million sustainability bond existing cash drawing million rcf going concern assessment rely upon either million million rcfs instead assumes mitigating actions within management control would taken details cash overdrafts borrowings facilities set notes respectively financial statements scenarios assessed taking account liquidity available resources group able maintain sufficient liquidity continue trading throughout going concern period september basis assessment performed directors consider appropriate continue adopt going concern basis preparing consolidated financial statements weeks ended march new standards amendments interpretations adopted period number amendments standards effective weeks march material impact financial statements group standards yet adopted certain new accounting standards amendments standards published yet mandatory weeks march early adopted group group assessing impact standards financial statements results communicated future periods including impact classification measurement financial instruments amendments ifrs ifrs effective reporting period beginning march may impact group group expect material impact ifrs presentation disclosure financial statements group primary financial statements ifrs effective reporting period beginning march subject endorsement replaces ias presentation financial statements basis consolidation group annual financial statements comprise burberry group plc company subsidiaries presented single economic entity results subsidiaries prepared reporting year company using consistent accounting policies across group financial year weeks ended march last year weeks ended march subsidiaries entities group control group controls entity group exposed rights variable returns involvement entity ability affect returns power entity subsidiaries fully consolidated date control transferred group cease consolidated date control transferred group loss control subsidiary consolidated financial statements include results portion reporting period group control intra group transactions balances unrealised profits transactions group companies eliminated preparing group financial statements group treats transactions non controlling interests transactions equity owners group acquisitions additional interests subsidiaries non controlling interests difference consideration paid relevant share acquired carrying value net assets subsidiary recorded equity gains losses disposals interests subsidiaries non controlling interests also recorded equity key sources estimation uncertainty preparation consolidated financial statements conformity ifrs requires management make certain estimates assumptions affect measurement reported revenues expenses assets liabilities disclosure contingent liabilities future estimates assumptions based management best estimates date financial statements deviate actual circumstances original estimates assumptions updated appropriate period circumstances change burberry annual report financial statements notes financial statements basis preparation continued key sources estimation uncertainty continued estimates continually evaluated based historical experience factors including expectations future events believed reasonable circumstances key areas estimates assumptions applied significant risk causing material adjustment carrying value assets liabilities within next financial year discussed details group accounting policies relation areas provided note impairment reversals impairment property plant equipment right use assets property plant equipment right use assets reviewed impairment reversals impairment events changes circumstances indicate carrying amount may recoverable review impairment conducted recoverable amount asset cash generating unit determined based value use calculations prepared using management best estimates assumptions time refer notes details retail property plant equipment right use assets impairment reviews carried period sensitivities relating key source estimation uncertainty inventory provisioning group purchases manufactures sells luxury goods subject changing consumer demands fashion trends recoverability cost inventories assessed every reporting period considering expected net realisable value inventory compared carrying value net realisable value lower carrying value provision recorded calculating inventory provisions management considers nature condition inventory well applying assumptions respect anticipated saleability finished goods future usage raw materials refer note details carrying value inventory inventory provisions sensitivities relating key source estimation uncertainty uncertain tax positions common many multinational companies group faces tax audits jurisdictions around world relation intra group transactions associated entities within group tax audits often subject inter government negotiations matters discussion often complex take many years resolve tax liabilities recorded based management estimate either likely amount expected value amount depending method expected better reflect resolution uncertainty given inherent uncertainty assessing tax outcomes group could future periods experience adjustments uncertain tax positions material positive negative effect group results particular period refer note details management estimates surrounding outcome matters dispute negotiation governments relation current tax liabilities recognised march sensitivities relating key source estimation uncertainty key judgements applying group accounting policies judgements decisions made applying accounting policies significant impact amounts recognised group financial statements details group accounting policies provided note key judgements significant impact amounts recognised group financial statements weeks march weeks march follows group lessee judgement required determining lease term initial recognition throughout lease term extension termination options exist instances facts circumstances may create economic incentive exercise extension option exercise termination option considered determine lease term considerations include limited period assessed management approving initial investment together costs associated termination options extension options extension periods periods termination options included lease term lease reasonably certain extended terminated lease term extended assuming extension option recognised result initial right use assets lease liabilities inception lease greater option assumed exercised likewise assuming break option exercised reduce initial right use assets lease liabilities refer note details surrounding judgements regarding impact breaks options lease liabilities burberry annual report financial statements notes financial statements accounting policies material accounting policies group revenue group obtains revenue contracts relating sales luxury goods retail wholesale customers group also obtains revenue licences issued third parties produce sell goods carrying burberry trademarks retail purchases paid time purchase wholesale licensing purchases paid short term credit terms revenue stated excluding value added tax sales related taxes retail wholesale revenue retail wholesale revenue primary performance obligation transfer luxury goods customer retail revenue considered occur control goods passes customer store retail revenue control transfers customer takes possession goods store pays goods digital retail revenue control considered transfer goods delivered customer timing transfer control goods wholesale transactions depends upon terms trade contract principally wholesale revenue revenue recognised either goods collected customer group premises group delivered goods location specified contract provision returns allowances reflected revenue revenue customer first recognised sales return liability corresponding return asset within gross inventory recognised retail customers typically right return product within limited time frame wholesale customers typically right return damaged agreement certain current season products returns initially estimated based historical levels adjusted subsequently returns incurred wholesale contracts may require group make payments wholesale customer services directly relating sale group goods cost staff handling group goods wholesaler payments customer directly relating sale goods customer recognised reduction revenue unless exchange distinct good service charges recognised revenue later sale related goods customer recognised customer paid promised paid service payments customer relating service distinct sale goods customer recognised operating costs group sells gift cards similar products customers redeemed goods value card future date revenue relating gift cards recognised card redeemed value redemption unredeemed amounts gift cards classified contract liabilities typically group expect significant unredeemed amounts arising gift cards licensing revenue group licences entitle licensee access group trademarks term licence hence revenue licensing recognised term access licence royalties receivable licence agreements usually based production sales volumes accrued revenue subsequent production sale occurs amounts received recognised revenue classified contract liabilities segment reporting required ifrs operating segments segmental information presented financial statements reported manner consistent internal reporting provided chief operating decision maker chief operating decision maker responsible allocating resources assessing performance identified board directors group centralised activities designing making sourcing ensure global product offering sold retail wholesale channels worldwide resource allocation performance assessed across whole retail wholesale channel globally hence retail wholesale channel determined operating segment licensed products manufactured sold third party licensees result channel assessed discretely chief operating decision maker determined operating segment group presents analysis revenue channel product division geographical destination business combinations acquisition method accounting used account acquisition subsidiaries group cost acquisition measured fair value assets given equity instruments issued liabilities assumed date exchange contingent payments subsequently remeasured fair value income statement transaction costs expensed income statement identifiable assets acquired liabilities contingent liabilities assumed business combination measured initially fair values acquisition date irrespective extent non controlling interest non controlling interests subsidiaries identified separately group equity initially measured either fair value value equal non controlling interests share identifiable net assets acquired choice basis measurement accounting policy choice individual business combination excess cost acquisition together value non controlling interest fair value identifiable net assets acquired recorded goodwill cost acquisition less fair value net assets subsidiary acquired difference recognised directly income statement burberry annual report financial statements notes financial statements accounting policies continued share schemes group operates number equity settled share based compensation schemes services received employees including executive directors consideration equity instruments company cost share based incentives measured reference fair value equity instruments awarded date grant including share awards options appropriate option pricing models including black scholes used determine fair value option awards made fair value takes account impact market performance conditions impact non market performance conditions considered determining fair value date grant vesting conditions relate non market conditions allowed assumptions used number share awards options expected vest estimate number share awards options expected vest revised balance sheet date circumstances employees may provide services advance grant date grant date fair value estimated purposes recognising expense period service commencement period grant date cost share based incentives recognised expense vesting period share awards options corresponding credit equity share awards options exercised settled either via issue new shares company shares held employee share option plan trust burberry group plc sip trust collectively known esop trusts depending terms conditions relevant scheme new shares issued proceeds received exercise share options net directly attributable transaction costs credited share capital share premium accounts esop shares used difference exercise price cost recognised retained earnings leases group lessee property plant equipment contract contains lease contract conveys right control use identified asset period time exchange consideration identified asset may specifically implicitly specified control exists lessee right direct use identified asset right obtain substantially economic benefits use lessee accounting group principal lease arrangements group acts lessee property notably lease retail stores corporate offices warehouses leases advertising fixtures office equipment vehicles supply chain equipment lease terms negotiated individual basis contain wide range different terms conditions group recognises lease liabilities corresponding right use assets balance sheet exception certain short term leases months less leases low value assets expensed incurred leases corresponding right use assets initially recognised group obtains control underlying asset leases new assets presented additions lease liabilities right use assets lease liabilities initially measured present value basis lease liabilities include net present value following lease payments fixed payments less incentives variable lease payments based future index rate amounts expected payable lessee residual value guarantees lease contains extension option termination option exercisable group lessee assessment made whether group reasonably certain exercise extension option exercise termination option considering relevant facts circumstances create economic incentive considerations may include contractual terms conditions optional periods compared market rates costs associated termination lease importance underlying asset group operations variable lease payments dependent upon future index rate measured using amounts payable commencement date index rate known variable lease payments dependent index rate including lease payments based percentage turnover excluded calculation lease liabilities payments discounted incremental borrowing rate lessee unless interest rate implicit lease readily determined right use assets classified property non property group elected apply short term exemption property class right use assets exemption applied non property class right use assets lease payments expensed incurred low value asset exemption applied non property class assets applicable burberry annual report financial statements notes financial statements accounting policies continued leases continued lessee accounting continued circumstances group possession property executed agreement binding obligation relation property rent expensed time obligation becomes binding point right use asset lease liability recognised prospectively lease costs disclosed lease holdover expenses refer notes right use assets measured cost comprising following amount initial measurement lease liability lease payments made commencement date less lease incentives received initial direct costs incurred entering lease group recognises depreciation right use assets interest lease liabilities income statement lease term repayments lease liabilities classified separately statement cash flows cash payments principal portion lease liability presented within financing activities cash payments interest portion presented within operating activities payments relation variable lease payments based turnover short term leases leases low value assets included balance sheet included within operating expenses modifications lease agreements extensions existing lease agreements changes future lease payments relating existing terms contract including market rent reassessments index based changes presented remeasurements lease liabilities related right use asset also remeasured modification results reduction scope lease either shortening lease term disposing part underlying asset gain loss disposal may arise relating difference lease liabilities right use asset applicable reduction scope right use assets included review impairment property plant equipment intangible assets finite economic lives indication carrying amount cash generating unit may recoverable dividend distributions dividend distributions burberry group plc shareholders recognised liability period dividend becomes committed obligation final dividends recognised approved shareholders interim dividends recognised paid pension costs eligible employees participate defined contribution pension schemes principal one assets held independently administered fund cost providing benefits participating employees recognised income statement fall due comprises amount contributions group schemes intangible assets goodwill goodwill excess cost acquisition together value non controlling interest fair value identifiable net assets acquired goodwill acquisition recorded intangible asset fair values attributed identifiable assets liabilities contingent liabilities existed date acquisition reflecting condition date adjustments also made align accounting policies acquired businesses group goodwill assigned indefinite useful life impairment reviews performed annually frequently events changes circumstances indicate carrying value may recoverable impairment losses recognised goodwill reversed future periods trademarks licences intangible assets cost securing renewing trademarks licences cost acquiring intangible assets capitalised purchase price fair value acquired business combination amortised equal annual instalments period benefits expected accrue typically years trademarks term licence useful life trademarks intangible assets determined case case basis accordance terms underlying agreement nature asset computer software computer software costs capitalised development phase point sufficient certainty software deliver future economic benefits group cost acquiring computer software including licences separately identifiable development costs capitalised intangible asset purchase price plus directly attributable cost preparing asset intended use software costs amortised straight line basis estimated useful lives may seven years burberry annual report financial statements notes financial statements accounting policies continued property plant equipment property plant equipment exception assets course construction stated cost deemed cost based historical revalued amounts prior adoption ifrs less accumulated depreciation provision reflect impairment value assets course construction stated cost less provision impairment transferred completed assets substantially activities necessary asset ready use occurred cost includes original purchase price asset costs attributable bringing asset working condition intended use depreciation depreciation property plant equipment calculated write cost deemed cost less residual value assets equal annual instalments estimated useful lives following rates type asset category property plant equipment useful life land freehold land buildings depreciated freehold buildings freehold land buildings years leasehold improvements leasehold improvements unexpired term lease plant machinery fixtures fittings equipment years retail fixtures fittings fixtures fittings equipment years office fixtures fittings fixtures fittings equipment years computer equipment fixtures fittings equipment years assets course construction assets course construction depreciated profit loss disposal property plant equipment intangible assets profits losses disposal property plant equipment intangible assets represent difference net proceeds net book value date sale disposal disposals accounted relevant transaction becomes unconditional assets held sale non current assets classified held sale carrying amount recovered principally sale transaction rather continued use sale within next months considered highly probable assets classified held sale cease depreciated stated lower carrying amount fair value less costs sell impairment non financial assets assets indefinite useful life subject amortisation tested annually impairment assets construction also tested annually assets subject amortisation depreciation reviewed impairment whenever events changes circumstance indicate carrying value may recoverable impairment loss recognised amount carrying value exceeds recoverable amount recoverable amount higher asset fair value less costs sell value use purposes assessing impairment retail assets grouped lowest levels separately identifiable cash inflows individual stores cash generating units goodwill assets considered lowest level monitored management non financial assets goodwill impairment previously recognised reviewed possible reversal impairment reporting date inventories inventories stated lower cost net realisable value cost consists costs purchase costs conversion design costs costs incurred bringing inventories first point sale location condition cost inventories determined using weighted average cost method taking account fashion seasons inventory offered necessary provision made reduce cost net realisable value regard nature condition inventory well anticipated utilisation saleability burberry annual report financial statements notes financial statements accounting policies continued taxation tax expense represents sum current tax expense deferred tax charge current tax based taxable profit year taxable profit differs profit loss reported income statement excludes items income expense taxable deductible years excludes items never taxable deductible group liability current tax calculated using tax rates enacted substantively enacted balance sheet date deferred tax recognised using liabilities method temporary differences arising tax bases assets liabilities carrying amounts consolidated financial statements however temporary difference arises initial recognition asset liability transaction business combination time transaction affects neither accounting taxable profit loss give rise equal taxable deductible temporary differences deferred tax recognised deferred tax determined using tax rates laws enacted substantively enacted balance sheet date expected apply related deferred tax asset realised deferred tax liability settled deferred tax assets recognised extent probable future taxable profits available temporary differences utilised deferred tax provided temporary differences arising investments subsidiaries except timing reversal temporary difference controlled group probable temporary difference reverse foreseeable future deferred tax assets liabilities offset legally enforceable right offset current tax assets current tax liabilities deferred tax assets liabilities relate income taxes levied taxation authority either taxable entities different taxable entities intention settle balances net basis provisions provisions recognised present legal constructive obligation result past events probable outflow economic benefits required settle obligation amount obligation reliably estimated effect time value money material provision amounts calculated based present value expenditures expected required settle obligation present value calculated using forward market interest rates measured balance sheet reporting date adjusted risks specific future obligation property obligations provision present value future property reinstatement costs recognised obligation return leased property original condition end lease term reinstatement cost end lease usually arises due leasehold improvements modifications carried group order customise property tenure lease result cost reinstatement provision recognised component cost leasehold improvements property plant equipment installed amortised income statement expected life lease share capital ordinary shares classified equity incremental costs directly attributable issue new shares options shown equity deduction net tax proceeds group company purchases company equity share capital treasury shares consideration paid including directly attributable incremental costs deducted retained earnings shares subsequently cancelled transfer made retained earnings capital reserve equivalent nominal value shares purchased subsequently cancelled shares subsequently sold reissued consideration received net directly attributable incremental transaction costs related income tax effects credited retained earnings value consideration originally paid additional consideration received credited share premium account included equity attributable owners company burberry annual report financial statements notes financial statements accounting policies continued financial instruments financial instruments initially recognised fair value plus directly attributable transaction costs balance sheet entity becomes party contractual provisions instrument financial asset derecognised contractual rights cash flow expire substantially risks rewards asset transferred financial liability derecognised obligation specified contract discharged cancelled expires initial recognition financial liabilities stated fair value subsequent initial recognition financial liabilities stated amortised cost using effective interest rate method except derivatives held fair value classified fair value profit loss except qualify hedge accounting financial assets classified either amortised cost fair value profit loss depending cash flow characteristics assets cash flows solely represent payments principal interest measured amortised cost fair value group financial assets liabilities held amortised cost mostly approximate carrying amount due short maturity instruments fair value financial asset liability held amortised cost materially different book value fair value disclosed group classifies instruments following categories financial instrument category note classification measurement fair value measurement hierarchy cash cash equivalents amortised cost amortised cost cash cash equivalents fair value profit loss fair value profit loss trade receivables amortised cost amortised cost trade payables financial liabilities amortised cost borrowings financial liabilities amortised cost leases lease liabilities amortised cost deferred consideration fair value profit loss fair value profit loss derivative contracts fair value profit loss fair value profit loss derivative contracts used hedging fair value hedging instrument fair value hedging instrument cash flow hedge net investment hedge accounting applied extent achievable fair value measurement hierarchy applicable financial instruments measured fair value derivative contracts used hedging classified fair value hedging instruments ifrs however ias hedge accounting applied measurements financial instruments carried fair value categorised different levels fair value hierarchy based inputs valuation technique used different levels defined follows level quoted prices unadjusted active markets identical assets liabilities group access measurement date level inputs quoted prices included within level observable asset liability either directly indirectly level includes unobservable inputs asset liability observable inputs developed using market data publicly available information actual events transactions group established framework respect measurement fair values including level fair values group regularly reviews significant inputs derived observable market data considers available relevant third party information support conclusion valuations meet requirements ifrs classification level fair value hierarchy also considered periodically fair value cash cash equivalents measured fair value profit loss principally money market funds derived net asset value based value portfolio investment holdings balance sheet date considered level measurement fair value derivative contracts trade receivables principally cash settled equity swaps based comparison contractual market rates case derivative contracts discounting using appropriate yield curve balance sheet date level fair value measurements calculated using inputs based observable market data fair value contingent payment component deferred consideration considered level measurement derived using present value calculation incorporating observable non observable inputs valuation technique adopted closely mirrors contractual arrangement burberry annual report financial statements notes financial statements accounting policies continued financial instruments continued group primary categories financial instruments listed cash cash equivalents cash short term deposits balance sheet comprise cash banks hand short term highly liquid deposits maturity three months less readily convertible known amount cash subject insignificant risk changes value statement cash flows cash cash equivalents also include bank overdrafts recorded current liabilities balance sheet cash bank hand classified amortised cost short term deposits classified fair value profit loss cash cash equivalents held amortised cost subject impairment testing period end trade receivables trade receivables included current assets except maturities greater months balance sheet date receivables held objective collect contractual cash flows therefore initially recognised fair value subsequently measured amortised cost using effective interest rate method less provision impairment provision expected credit losses trade receivables established inception expected credit loss rates calculated reviewing lifetime expected credit losses using historic forward looking data amount movement provision recognised income statement trade payables trade payables included current liabilities except maturities greater months balance sheet date payables initially recognised fair value subsequently measured amortised cost using effective interest rate method borrowings borrowings initially recognised fair value net transaction costs incurred borrowings subsequently stated amortised cost difference proceeds net transaction costs redemption value recognised income statement period borrowings deferred consideration deferred consideration initially recognised present value expected future payments subsequently remeasured fair value reporting period change fair value relating changes expected future payments recorded income statement operating expense income changes fair value relating unwinding discounting present value recorded financing expense derivative instruments group uses derivative financial instruments hedge exposure fluctuations foreign exchange interest rates arising certain operating financing transactions derivatives instruments initially recognised fair value trade date remeasured fair value subsequent balance sheet dates method recognising resulting gain loss depends whether derivative designated hedging instrument nature item hedged derivatives qualify hedge accounting gains losses remeasurement recognised income statement operating expense income adoption ifrs group elected continue apply hedge accounting guidance ias financial instruments recognition measurement fair value hedge accounting derivative instruments classified fair value hedges hedge group exposure changes fair value recognised asset liability changes fair value derivative instrument recognised part carrying value derivative instrument income statement changes fair value hedged item attributable hedged risk recognised part carrying value hedged item income statement hedge longer meets criteria hedge accounting adjustment carrying amount hedged item amortised income statement remaining period maturity burberry annual report financial statements notes financial statements accounting policies continued financial instruments continued derivative instruments continued cash flow hedge accounting derivative instruments classified cash flow hedges hedge group exposure changes cash flows attributable particular risk associated recognised asset liability unrecognised firm commitment highly probable forecast transaction effective portion changes fair value relating derivative instruments designated qualify cash flow hedges deferred comprehensive income gain loss relating ineffective portion gain loss recognised immediately income statement amounts deferred comprehensive income recycled income statement periods hedged item affects income statement hedging instrument expires sold hedge relationship terminated hedge longer meets criteria hedge accounting cumulative gain loss existing equity time remains comprehensive income recognised forecast transaction ultimately recognised income statement forecast transaction longer expected occur cumulative gain loss reported equity immediately transferred income statement foreign currency translation functional presentation currency items included financial statements group entities measured using currency primary economic environment entity operates functional currency consolidated financial statements presented sterling company functional group presentation currency transactions foreign currencies transactions denominated foreign currencies within entity group translated functional currency exchange rate prevailing date transaction monetary assets liabilities denominated foreign currencies held year end translated functional currency exchange rate ruling balance sheet date closing rate exchange differences monetary items recognised income statement period arise except exchange differences form part net investment overseas subsidiaries group case differences recognised comprehensive income translation results overseas businesses results overseas subsidiaries translated group presentation currency sterling month average exchange rate month weighted according phasing group trading results average exchange rate used considered approximate actual exchange rates date transactions assets liabilities undertakings translated closing rates differences arising retranslation opening net investment subsidiary companies translation results recognised comprehensive income goodwill fair value adjustments arising acquisition foreign operation treated assets liabilities foreign operation translated closing rate principal exchange rates used follows average rate closing rate weeks march weeks march march march euro dollar chinese yuan renminbi hong kong dollar south korean japanese yen adjusted profit taxation order provide additional understanding underlying performance group ongoing business group results include presentation adjusted operating profit adjusted profit taxation adjusted pbt adjusted pbt defined profit taxation adjusting items adjusting items items opinion directors excluded order provide consistent comparable view performance group ongoing business generally include items largely one material nature restructuring charges well income expenses relating acquisitions disposals businesses transactions similar nature including impact changes fair value expected future payments receipts relating transactions adjusting items identified presented consistent basis year reconciliation adjusted pbt profit taxation included financial statements adjusting items related tax impacts well adjusting taxation items added back deducted profit attributable owners company arrive adjusted earnings per share refer note details adjusting items note details adjusted earnings per share burberry annual report financial statements notes financial statements segmental analysis chief operating decision maker identified board directors board reviews group internal reporting order assess performance allocate resources management determined operating segments based reports used board board considers group business two channels market retail wholesale licensing retail wholesale revenues generated sale luxury goods burberry full price stores concessions outlets digital commerce well burberry franchisees prestige department stores globally multi brand speciality accounts flow global product retail wholesale channels across regions monitored optimised corporate level implemented via group inventory hubs principal distribution centres situated europe usa mainland china hong kong china licensing revenues generated receipt royalties global licensees beauty products eyewear licences relating use non burberry trademarks japan board assesses channel performance based measure adjusted operating profit measurement basis excludes effects adjusting items measure earnings operating segment reviewed board includes allocation corporate central costs interest income charges included result operating segment reviewed board retail wholesale licensing total weeks march weeks march weeks march weeks march weeks march weeks march retail wholesale licensing total segment revenue inter segment revenue revenue external customers depreciation amortisation impairment charge intangible assets impairment charge property plant equipment impairment charge right use assets net movement inventory provisions non cash items share based payments adjusted operating loss profit adjusting items operating loss profit finance income finance expense loss profit taxation inter segment transfers transactions entered normal commercial terms conditions would available unrelated third parties depreciation right use assets weeks march presented including charge million arising result group restructuring programme last year nil presented adjusting item refer note impairment charge right use assets weeks march presented including million relation non retail right use assets arising result group restructuring programme last year nil presented adjusting item refer note adjusting items relate retail wholesale segment refer note details adjusting items retail wholesale licensing total weeks march weeks march weeks march weeks march weeks march weeks march additions non current assets total segment assets goodwill cash cash equivalents taxation total assets per balance sheet burberry annual report financial statements notes financial statements segmental analysis continued additional revenue analysis revenue derived contracts customers group derives retail wholesale revenue contracts customers transfer goods related services point time licensing revenue derived period licence agreement gives customer access group trademarks revenue product weeks march weeks march accessories womenswear menswear childrenswear retail wholesale licensing total revenue destination weeks march weeks march asia pacific emeia americas retail wholesale licensing total emeia comprises europe middle east india africa entity wide disclosures revenue derived external customers totalled million weeks march last year million revenue derived external customers foreign countries totalled million weeks march last year million amount includes million external revenues derived customers usa last year million million external revenues derived customers mainland china last year million total non current assets financial instruments deferred tax assets located million last year million remaining million non current assets located countries last year million million located usa last year million million located mainland china last year million burberry annual report financial statements notes financial statements net operating expenses note weeks march weeks march operating income selling distribution costs administrative expenses adjusting operating expenses net operating expenses profit taxation note weeks march weeks march profit taxation stated charging crediting depreciation property plant equipment within cost sales within selling distribution costs within administrative expenses depreciation right use assets within cost sales within selling distribution costs within administrative expenses amortisation intangible assets within selling distribution costs within administrative expenses net movement inventory provisions within cost sales loss disposal intangible assets gain modification right use assets impairment charge property plant equipment impairment charge right use assets impairment charge intangible assets employee costs lease expense property lease variable lease expense property lease holdover expense non property short term lease expense net exchange loss revaluation monetary assets liabilities net gain derivatives fair value profit loss receivables impairment charge depreciation right use assets weeks march presented including charge million arising result group restructuring programme last year nil presented adjusting item refer note impairment charge right use assets weeks march presented including million relation non retail right use assets arising result group restructuring programme last year nil presented adjusting item refer note employee costs weeks march presented including charge million arising result group restructuring programme last year nil presented adjusting item refer note burberry annual report financial statements notes financial statements adjusting items weeks march weeks march total adjusting operating items tax adjusting items total adjusting items post tax restructuring costs weeks march restructuring costs million last year nil incurred arising primarily result burberry forward transformation programme initiated period majority expected conclude end associated costs recorded within operating expenses largely cash costs principally related redundancies million consultancy costs million restructuring related costs million costs presented adjusting item accordance group accounting policy anticipated cost restructuring programme considered material discrete nature related tax credit million last year nil also recognised current year cumulative costs largely cash costs related burberry forward transformation programme expected total million auditor remuneration fees incurred year relation audit non audit services analysed weeks march weeks march audit services respect financial statements company consolidation audit services respect financial statements subsidiary companies audit related assurance services non audit related services total financing note weeks march weeks march finance income amortised cost finance income fair value profit loss finance income finance expense lease liabilities finance expense overdrafts interest expense borrowings finance expense bank charges finance expense net finance expense burberry annual report financial statements notes financial statements taxation analysis charge year recognised group income statement weeks march weeks march current tax corporation tax current tax income weeks march last year double taxation relief adjustments respect prior years foreign tax current tax income year adjustments respect prior years total current tax deferred tax deferred tax origination reversal temporary differences adjustments respect prior years foreign deferred tax origination reversal temporary differences adjustments respect prior years total deferred tax total tax charge profit adjustments respect prior years relate mainly adjustments estimates prior period tax liabilities net increase provisions uncertain tax positions instances provision also includes offsetting relief different jurisdiction tax accruals analysis charge year recognised comprehensive income directly equity weeks march weeks march current tax recognised comprehensive income current tax credit exchange differences loans foreign currency translation reserve total current tax recognised comprehensive income deferred tax recognised equity deferred tax charge share options retained earnings total deferred tax recognised directly equity burberry annual report financial statements notes financial statements taxation continued tax rate applicable profit varied standard rate corporation tax due following factors weeks march weeks march loss profit taxation tax last year profit taxation rate adjustments relating overseas profits permanent differences current year tax losses recognised prior year temporary differences tax losses recognised adjustments respect prior years total taxation charge total taxation recognised group income statement arises following items note weeks march weeks march tax adjusted loss profit taxation tax adjusting items total taxation charge factors affecting future tax charges uncertain tax positions group operates numerous tax jurisdictions around world subject factors may affect future tax charges including transfer pricing tax rate changes tax legislation changes tax authority interpretation expiry statutes limitation tax litigation resolution tax audits disputes given time group open years outstanding various countries involved tax audits disputes may take several years resolve provisions based best estimates management judgements concerning likely ultimate outcome audit dispute management considers specific circumstances tax position takes external advice appropriate assess range potential outcomes estimate additional tax may due march group recognised provisions million respect uncertain tax positions last year million provisions million net expected reimbursements million last year million net expected reimbursements million majority provisions relate tax impact intra group transactions various jurisdictions group operates would expected group operating internationally group believes made adequate provision respect additional tax liabilities may arise open years tax audits disputes however actual liability particular issue may higher lower amount provided resulting negative positive effect tax charge given year reduction tax charge may also arise reasons expiry relevant statute limitations depending final outcome tax audits currently progress statute limitations expiry factors impact tax charge could arise tax impact intra group transactions complex area resolution matters take many years given inherent uncertainty difficult predict timing matters resolved quantum ultimate resolution management estimate outcome across matters dispute negotiation governments could range decrease million increase million uncertain tax position next months legislative changes oecd pillar two globe rules introduce global minimum corporate tax rate applicable multinational enterprise groups global revenue million participating oecd members required incorporate rules national legislation group subject pillar two model rules meet threshold application pillar one transfer pricing rules group applies temporary exception accounting requirements deferred taxes ias accordingly group neither recognises discloses information deferred tax assets liabilities related pillar two income taxes legislation relation pillar two substantively enacted june applies group reporting period beginning march group performed analysis potential exposure pillar two income taxes analysis potential exposure pillar two income taxes based recently submitted country country reporting available constituent entities group weeks march based analysis transitional safe harbour relief apply respect jurisdictions group operates although limited number jurisdictions transitional safe harbour relief may apply group expect material exposure pillar two income taxes jurisdictions burberry annual report financial statements notes financial statements earnings per share calculation basic earnings per share based profit loss attributable owners company year divided weighted average number ordinary shares issue year basic diluted earnings per share based adjusted profit taxation also disclosed indicate underlying profitability group weeks march weeks march attributable loss profit year adjusting items effect adjusting items taxation attributable loss profit year refer note details adjusting items weighted average number ordinary shares represents weighted average number burberry group plc ordinary shares issue throughout year excluding ordinary shares held group esop trusts treasury shares held company subsidiaries diluted earnings per share based weighted average number ordinary shares issue year addition account taken options awards made employee share incentive schemes dilutive effect exercised refer note additional information terms conditions employee share incentive schemes weeks march millions weeks march millions weighted average number ordinary shares issue year dilutive effect employee share incentive schemes diluted weighted average number ordinary shares issue year weeks march pence weeks march pence loss earnings per share basic diluted adjusted loss earnings per share basic diluted group incurred attributable loss weeks march effect employee share incentive schemes antidilutive therefore included calculation diluted loss per share period dividends paid owners company weeks march weeks march prior year final dividend paid per share last year interim dividend paid nil per share last year total directors elected declare interim final dividend respect weeks march last year burberry annual report financial statements notes financial statements intangible assets cost goodwill trademarks licences intangible assets computer software intangible assets course construction total april effect foreign exchange rate changes additions business combination disposals reclassifications assets course construction march effect foreign exchange rate changes additions disposals reclassifications assets course construction march accumulated amortisation impairment april effect foreign exchange rate changes charge year disposals march effect foreign exchange rate changes charge year disposals impairment charge assets march net book value march march impairment testing goodwill carrying value goodwill allocated cash generating units march march mainland china south korea retail wholesale segment total goodwill arose acquisitions burberry manifattura burberry tecnica allocated group cash generating units make group retail wholesale operating segment cash generating unit reflects lowest level goodwill monitored management group tests goodwill impairment annually indication goodwill might impaired recoverable amount cash generating units determined value use basis value use calculations cash generating unit based projected pre tax discounted cash flows together discounted terminal value cash flows discounted pre tax rates reflecting group weighted average cost capital adjusted country specific tax rates risks cash generating unit non controlling interest recognised value equal proportionate interest net identifiable assets acquired subsidiary acquisition date carrying amount goodwill grossed include goodwill attributable non controlling interest purpose impairment testing goodwill attributable cash generating unit key assumptions contained value use calculations include future revenues operating profit margins achieved discount rates applied value use calculations prepared using management cost revenue projections next three years april longer term growth rate march last year march terminal value included value use calculation based cash flows year ending march incorporating assumption growth beyond march equivalent nominal inflation rates assumed last year beyond march significant assessment value use estimates indicated recoverable amount cash generating unit exceeded carrying value cash generating units result impairment recognised respect carrying value goodwill year burberry annual report financial statements notes financial statements intangible assets continued impairment testing goodwill continued material goodwill balances mainland china south korea retail wholesale segment management considered potential impact reasonably possible changes assumptions recoverable amount goodwill sensitivities include applying reduction revenue gross profit associated impact operating profit margin management base cash flow projections considering macroeconomic political uncertainty risk group retail operations global economy scenario estimated recoverable amount goodwill mainland china south korea retail wholesale segment still exceeded carrying value pre tax discount rates mainland china south korea retail wholesale segment respectively last year mainland china south korea retail wholesale segment reasonably possible change pre tax discount rates would result carrying value exceeding estimated recoverable amount goodwill goodwill balance million last year million consists amounts relating eight cash generating units none goodwill balances individually exceeding million march last year million property plant equipment cost freehold land buildings leasehold improvements fixtures fittings equipment assets course construction total april effect foreign exchange rate changes additions business combination disposals reclassifications assets course construction reclassifications assets held sale march effect foreign exchange rate changes additions disposals reclassifications assets course construction march accumulated depreciation impairment april effect foreign exchange rate changes charge year disposals impairment charge assets reclassifications assets held sale march effect foreign exchange rate changes charge year disposals impairment charge assets march net book value march march burberry annual report financial statements notes financial statements property plant equipment continued weeks march management carried review retail cash generating units comprising right use asset property plant equipment indication impairment reversal impairments previously recorded indications impairment charges reversals identified impairment review compared value use cash generating units net book values march pre tax cash flow projections used review based financial plans expected revenues costs retail cash generating unit approved management reflecting latest plans next three years april remainder asset life cash flows assume industry growth rates last year cost inflation rates appropriate store location followed longer term growth rates mid single digits last year mid single digits inflation rates appropriate store location pre tax discount rates used calculations last year based group weighted average cost capital adjusted country specific borrowing costs tax rates risks countries charge incurred indicators impairment identified value use less carrying value cash generating unit impairment property plant equipment right use asset recorded weeks march charge million last year million recorded within net operating expenses result annual review impairment retail store assets charge comprised million last year million recorded property plant equipment million last year million recorded right use assets refer note details right use assets impairment charge recorded property plant equipment related retail cash generating units last year six retail cash generating units total recoverable amount balance sheet date million last year million management considered potential impact changes assumptions impairment recorded group retail assets given macroeconomic political uncertainty risk group retail operations global economy management considered sensitivities impairment charge result changes estimate future revenues achieved retail stores sensitivities applied increase decrease revenue estimate used determine impairment charge reversal estimated decrease increase revenue assumptions weeks march change subsequent forecast revenue growth rate assumptions would result million increase million decrease impairment charge retail store assets weeks march last year million increase million decrease assets classified held sale march weeks march group completed sale freehold property previously classified held sale million resulting net gain disposal nil right use assets net book value property right use assets non property right use assets total right use assets april effect foreign exchange rate changes additions business combination remeasurements depreciation year impairment charge right use assets march effect foreign exchange rate changes additions remeasurements depreciation year impairment charge right use assets march result assessment retail cash generating units impairment impairment charge million last year million recorded impairment right use assets related trading impacts refer note details impairment assessment retail cash generating units impairment charge prior year arose impairment right use assets related trading impacts impairment charge recorded right use assets relates retail cash generating units last year seven retail cash generating units total recoverable amount balance sheet date million last year million march impairment charge million recognised relation non retail right use assets arising result group restructuring programme presented adjusting item refer note result total impairment charge right use assets million last year million burberry annual report financial statements notes financial statements deferred taxation deferred tax assets liabilities offset legally enforceable right offset current tax assets current tax liabilities intention settle net basis fiscal authority assets liabilities presented balance sheet offset shown table march march deferred tax assets deferred tax liabilities net amount movement deferred tax account follows weeks march weeks march start year effect foreign exchange rate changes credited income statement business combination credited comprehensive income charged equity end year movement net deferred tax balances year follows capital allowances unrealised inventory profit inventory provisions share schemes unused tax losses leases total april effect foreign exchange rate changes credited charged income statement business combination credited comprehensive income charged equity march effect foreign exchange rate changes credited charged income statement march deferred balances within relate largely temporary differences arising provisions accruals deferred tax assets recognised tax losses carried forward extent realisation related benefit future taxable profits probable group recognise deferred tax assets million last year million respect losses temporary timing differences amounting million last year million set future taxable income time limit recovery million potential assets last year million ranges one years last year one five years group recognised deferred tax asset million including profit stock consolidation adjustments mainland china million arises due losses group financial forecasts indicate subsidiary mainland china expected generate future taxable profits enable deferred tax asset utilised full jurisdictions tax deductions follow ifrs accounting group recognises deferred tax asset lease liability separate deferred tax liability right use asset group applies jurisdictional netting net position included leases column included within temporary differences deferred tax liability million last year million relating unremitted overseas earnings deferred tax liability provided respect future remittance earnings foreign subsidiaries group able control remittance earnings probable earnings remitted foreseeable future liability would arise remittance aggregate amount unremitted earnings respect deferred tax liability provided million last year million burberry annual report financial statements notes financial statements trade receivables march march non current financial receivables prepayments total non current trade receivables current trade receivables provision expected credit losses net trade receivables financial receivables non financial receivables prepayments accrued income total current trade receivables total trade receivables financial receivables include rental deposits sundry debtors non financial receivables relates primarily indirect taxes taxes duties included total trade receivables non financial assets million last year million group impairment policies calculation allowances credit losses detailed note credit risk section inventories march march raw materials work progress finished goods total inventories march march total inventories gross provisions total inventories net inventory provisions million last year million recorded representing last year gross value inventory provisions reflect management best estimate net realisable value inventory considered lower cost inventory cost inventories recognised expense included cost sales amounted million last year million taking account factors impacting inventory provisioning including proportion inventory sold loss making channels higher lower expected management considers reasonable potential range outcomes could result increase inventory provisions million decrease inventory provisions million next months would result potential range inventory provisions percentage gross value inventory march net movement inventory provisions included cost sales weeks march charge million last year million total reversal inventory provisions current year included net movement million last year million burberry annual report financial statements notes financial statements derivative financial instruments master netting arrangements group derivative contracts entered international swaps derivatives association isda master netting arrangements general agreements amounts owed counterparty single day respect transactions outstanding currency aggregated single amount payable one party certain circumstances default occurs outstanding transactions agreement terminated termination value assessed single net amount payable settlement transactions isda agreements meet criteria offsetting balance sheet group right offset enforceable occurrence future events default group amended isda agreement two banks require net settle forward foreign exchange contracts derivatives subject net settlement agreements offset balance sheet march last year none group balance sheet would materially different offset forward foreign exchange contracts interest rate swaps equity swap contracts subject standard isda agreements derivative financial assets liabilities fair value notional amounts derivatives analysed hedge type follows march march asset liability asset liability fair value notional value fair value notional value fair value notional value fair value notional value forward foreign exchange contracts cash flow hedges forward foreign exchange contracts fair value profit loss equity swap contracts fair value profit loss interest rate swaps fair value hedging instrument total position comprising total current position total non current position forward foreign exchange contracts classified fair value profit loss used cash management hedging monetary assets liabilities march contracts maturities greater months balance sheet date last year greater three months balance sheet date group entered interest rate swaps reduce level fixed rate debt accordance group treasury policy entered swaps fair value hedge relationships million medium term note mtn fixed rate bond effect hedge accounting financial position performance impact hedging instruments group financial position performance follows march carrying amount notional amount maturity date change fair value used measuring ineffectiveness period foreign currency forwards assets jun jan foreign currency forwards liabilities jun oct interest rate swaps assets interest rate swaps liabilities jun march carrying amount notional amount maturity date change fair value used measuring ineffectiveness period foreign currency forwards assets foreign currency forwards liabilities may aug interest rate swaps assets interest rate swaps liabilities burberry annual report financial statements notes financial statements derivative financial instruments continued impact fair value hedged item balance sheet march follows carrying amount accumulated fair value adjustments change value hedged item used determine hedge ineffectiveness mtn fixed rate bond change value cash flow hedges used determine hedge ineffectiveness march million foreign currency forwards denominated currency highly probable future inventory purchases eur therefore hedge ratio weighted average hedged rate outstanding contracts including forward points eur last year terms interest rate swap contracts match terms borrowings including notional amounts maturity interest settlement interest rate reset dates therefore group established hedge ratio hedging relationships underlying risk derivative contract identical hedged item contractual maturity profile non current financial liabilities shown note details cash flow hedging refer note market risk section cash cash equivalents march march cash cash equivalents held amortised cost cash bank hand short term deposits cash cash equivalents held fair value profit loss short term deposits total cash cash equivalents classified fair value profit loss relate deposits held low volatility net asset value money market funds cash available immediately since funds managed achieve low volatility significant change value anticipated funds monitored ensure significant changes value march march impairment losses identified cash cash equivalents held amortised cost burberry annual report financial statements notes financial statements trade payables march march non current payables deferred income non financial accruals contract liabilities total non current trade payables current trade payables taxes social security costs payables accruals deferred income non financial accruals contract liabilities deferred consideration total current trade payables total trade payables payables comprise interest employee related liabilities deferred consideration relates acquisition economic right non controlling interest burberry middle east llc april weeks march payments million made relation burberry middle east llc last year payments contingent payments million remain outstanding march paid required documentation complete included total trade payables non financial liabilities million last year million contract liabilities retail contract liabilities relate unredeemed balances issued gift cards similar products advanced payments received sales yet delivered customer licensing contract liabilities relate deferred revenue arising upfront payment beauty licence recognised revenue term licence straight line basis reflecting access trademark licence period march march retail contract liabilities licensing contract liabilities total contract liabilities amount revenue recognised year relating contract liabilities start year set following table revenue year relates performance obligations satisfied year contract liabilities end year relate unsatisfied performance obligations weeks march weeks march retail revenue relating contract liabilities deferred revenue beauty licence revenue recognised included contract liabilities start year burberry annual report financial statements notes financial statements lease liabilities property lease liabilities non property lease liabilities total lease liabilities balance april effect foreign exchange rate changes created year business combination amounts paid discount unwind remeasurements balance march effect foreign exchange rate changes created year amounts paid discount unwind remeasurements balance march march march analysis total lease liabilities non current current total amount paid million last year million includes million last year million including million paid termination lease representing financing cash outflow million last year million representing operating cash outflow remeasurements relate largely changes lease liabilities arise result extending lease term existing lease management reassessment lease term based existing break extension options contract well linked inflation index rate review group enters property leases retail properties including stores concessions warehouse storage locations office property remaining lease terms properties range months years last year months years many leases include break options extension options provide operational flexibility leases concessions rolling lease terms rolling break options management assess lease term inception based facts circumstances applicable property including period investment appraisal initially considered potential future undiscounted lease payments related periods following exercise date extension option included lease term therefore included lease liabilities approximately million last year million relation next available extension option assessed reasonably certain exercised potential future undiscounted lease payments related periods following exercise date break option included lease term therefore included lease liabilities approximately million last year million relation break options expected exercised weeks march significant judgements regarding breaks options relation individually material leases made last year million undiscounted future cash flows included initial right use assets lease liabilities management reviews retail lease portfolio ongoing basis taking account retail performance future trading expectations management may exercise extension options negotiate lease extensions modifications instances management may exercise break options negotiate lease reductions decide negotiate lease extension end lease term significant factor impacting future lease payments changes management choose make store portfolio future increases decreases rent linked inflation index rate review included lease liability change cash flows legally agreed approximately last year group lease liabilities subject inflation linked reviews last year subject rent reviews rental changes linked inflation rent reviews typically occur annual basis many retail property leases also incur payments based percentage revenue achieved location changes future variable lease payments typically reflect changes group retail revenues including impact regional mix group expects relative proportions fixed variable lease payments remain broadly consistent future years group also enters non property leases equipment advertising fixtures machinery generally leases include break extension options significant impact future cash flows relating leased equipment primarily short term leases would group usage leased equipment greater lesser extent burberry annual report financial statements notes financial statements lease liabilities continued group accounting policy leases set note details income statement charges income leases set note right use asset categories depreciation incurred presented note interest expense incurred lease liabilities presented note commitments relating balance sheet leases presented note maturity undiscounted future lease liabilities set note total cash outflows relation leases weeks march million last year million relates payments million lease principal last year million million lease interest last year million million variable lease payments last year million million lease payments principally relating short term leases leases holdover last year million provisions liabilities charges property obligations restructuring costs costs total balance april effect foreign exchange rate changes created year utilised year released year balance march effect foreign exchange rate changes created year utilised year released year balance march provision restructuring costs relates burberry forward transformation programme initiated period included adjusting item refer note details adjusting items net charge year property obligations million last year million relating future property reinstatement costs net charge year provisions million last year net credit million includes charges million last year million relating expected future outflows employee matters tax compliance reversals million last year million relating employee matters property matters march march analysis total provisions non current current total non current provisions relate property reinstatement costs expected utilised within years last year years burberry annual report financial statements notes financial statements borrowings march march maturity carrying value fair value carrying value fair value bank overdrafts mtn sustainability linked bond sep mtn fixed rate bond jun total bank overdrafts includes million last year million representing balances cash pooling arrangements group well nil last year million relating number committed uncommitted arrangements agreed third parties fair value overdrafts approximates carrying amount due short maturity instruments proceeds sustainability bond used group finance projects support group sustainability agenda movements bond non cash financial penalties using proceeds anticipated interest sustainability bond payable semi annually proceeds bond million movements bond non cash group entered interest rate swaps reduce level fixed rate debt accordance group treasury policy entered swaps fair value hedge relationships bond interest bond payable semi annually group million multi currency revolving credit facility rcf syndicate banks maturing november year group entered million multi currency rcf syndicate banks maturing march agreement contains option allow group extend additional one year exercisable consent syndicate drawdowns repayments rcfs current prior year march outstanding drawings group compliance financial covenants within facilities compliance throughout financial period share capital reserves allotted called fully paid share capital number ordinary shares last year april allotted exercise options year cancellation shares march allotted exercise options year march company general authority shareholders renewed annual general meeting repurchase maximum issued share capital share buy back programme current period prior weeks march company entered agreements purchase fair value total million shares excluding stamp duty fees two share buy back programmes million programmes completed prior year cost shares purchased company part share buy back programme offset retained earnings amounts paid reduce profits available distribution company shares cancelled transfer made retained earnings capital reserve equivalent nominal value shares purchased subsequently cancelled weeks march shares cancelled last year million march company held million treasury shares last year million market value million last year million based share price reporting date treasury shares held company related share buy back programme completed weeks april weeks march million treasury shares transferred esop trusts last year million weeks march treasury shares cancelled last year none cost shares purchased esop trusts offset retained earnings amounts paid reduce profits available distribution company march cost shares held esop trusts offset retained earnings million last year million march esop trusts held million shares last year million company market value million last year million weeks march esop trusts company waived entitlement dividends reserves statement changes equity consist capital reserve foreign currency translation reserve hedging reserves hedging reserves consist cash flow hedge reserve net investment hedge reserve burberry annual report financial statements notes financial statements share capital reserves continued capital reserve hedging reserves foreign currency translation reserve total cash flow hedges net investment hedge balance april comprehensive income cash flow hedges losses deferred equity cash flow hedges transferred income foreign currency translation differences tax comprehensive income total comprehensive income year balance march comprehensive income cash flow hedges losses deferred equity cash flow hedges transferred income foreign currency translation differences total comprehensive income year balance march march amount held hedging reserve relating matured net investment hedges million net tax last year million commitments financial commitments group leases various retail stores offices warehouses equipment non cancellable lease arrangements liabilities leases recorded group balance sheet group obtains control underlying asset group additional commitments relating leases group entered obligation yet control underlying asset future lease payments group committed expected lease term recorded group balance sheet follows march march amounts falling due within year years years total weeks march group entered two significant retail store lease agreements emeia march possession property one leases yet obtained remains financial commitment weeks march group agreed landlord exit one agreements remaining financial commitment respect agreement march group also operating commitments million capital commitments contracted capital commitments represent contracts entered year end future work respect major capital expenditure projects relating property plant equipment intangible assets recorded group balance sheet follows march march capital commitments contracted provided property plant equipment intangible assets total burberry annual report financial statements notes financial statements financial risk management group principal financial instruments comprise derivative instruments cash cash equivalents borrowings including overdrafts trade receivables trade payables arising directly operations group activities expose variety financial risks market risks including foreign exchange risk interest rate risk credit risk liquidity risk capital risk risk management carried group treasury department group treasury based forecast business requirements reduce financial risk ensure sufficient liquidity available meet foreseeable needs invest cash cash equivalents safely profitably group uses derivative instruments hedge certain risk exposures group treasury operate profit centre transacts relation underlying business requirements policies group treasury reviewed approved board directors annually market risk foreign exchange risk group operates internationally exposed foreign exchange risk arising various non sterling currencies group income statement affected transactions denominated foreign currency reduce exposure currency fluctuations group policy hedging foreign currency denominated transactions entering forward foreign exchange contracts refer note transactions recorded cash flow hedges group foreign currency transactions arise principally purchases sales inventory group treasury risk management policy hedge prior market opening anticipated third party foreign currency exposure currency season net currency exposure greater million currently group hedge anticipated intercompany foreign currency transactions group uses forward exchange contracts hedge currency risk group designates spot component foreign currency forwards hedge relationships applies ratio forward elements foreign currency forward excluded designation hedging instrument separately accounted cost hedging recognised operating expenses discounted basis group determines existence economic relationship hedging instrument hedged item based currency amount timing respective cash flows group assesses whether derivative designated hedging relationship expected effective offsetting changes cash flows hedged item using dollar offset method hedge relationships ineffectiveness may arise timing forecast transaction changes originally estimated changes credit risk group derivative counterparty ineffectiveness weeks ending march last year ineffectiveness group monitors desirability hedging net assets overseas subsidiaries translated sterling reporting purposes group would use forward foreign exchange contracts hedge net assets overseas subsidiaries relating surplus cash whose remittance foreseeable outstanding net investment hedges march last year outstanding net investment hedges march group performed sensitivity analysis determine effect sterling strengthening weakening last year currencies variables held constant effect translating foreign currency denominated net cash trade intercompany financial receivables payables financial instruments fair value profit loss march would increase decrease operating profit year million last year increase decrease million post tax basis effect translating forward foreign exchange contracts designated cash flow hedges march would decrease increase equity million last year decrease increase million post tax basis following table shows extent group monetary assets liabilities year end currencies local currency operation accounting effect specific forward foreign exchange contracts used manage currency exposure monetary assets liabilities refer cash deposits overdrafts borrowings amounts received paid cash amounts exclude intercompany balances eliminate consolidation foreign exchange differences retranslation assets liabilities recognised net operating expenses march march monetary assets monetary liabilities net monetary assets monetary liabilities net sterling dollar euro chinese yuan renminbi currencies total burberry annual report financial statements notes financial statements financial risk management continued market risk continued interest rate risk group exposure market risk changes interest rates relates primarily cash borrowings short term deposits overdrafts interest rate risk risk fair value financial instrument fluctuate changes market interest rates group exposure risk changes market interest rates relates primarily group long term debt obligations fixed interest rates group manages interest rate risk balanced portfolio fixed variable rate loans borrowings group net debt position group policy ensure forecast net debt fixed rate subject minimus position facilitate group enters interest rate swaps agrees exchange specified intervals difference fixed variable rate interest amounts calculated reference agreed upon notional principal amount march taking account effect interest rate swaps approximately group long term borrowings floating rate interest last year none floating rate financial liabilities march million last year million due cash pool overdrafts borrowings swapped fixed interest rate floating interest rate fixed rate financial liabilities march borrowings million last year million interest rates floating rate financial liabilities basis points higher lower last year basis points excluding impact cash pool overdraft balances variables held constant post tax profit year would million last year nil lower higher result higher lower interest expense floating rate financial assets march comprise short term deposits million last year million interest bearing current accounts million last year nil cash pool asset balances million last year million march interest rates floating rate financial assets basis points higher lower last year basis points excluding impact cash pool asset balances variables held constant post tax profit year would million last year million higher lower result higher lower interest income credit risk trade receivables group significant concentrations credit risk trade receivables balance spread across large number different customers single debtor year representing total balance due last year group policies place ensure wholesale sales made customers appropriate credit history sales retail customers made cash via major credit cards retail locations group store contained within department store mall example concession sales proceeds may initially held operator wider location giving rise retail debtors addition receivables balances monitored ongoing basis result group exposure bad debts significant default rates historically low group applies simplified approach measuring trade receivable expected credit losses approach uses lifetime expected loss allowance measure expected credit losses trade receivables grouped based segment geographical region days past due expected loss rates reviewed annually significant change external factors potentially impacting credit risk updated management expectations credit losses change changes made expected loss rates weeks march expected credit loss allowance receivables determined follows march current less month overdue less months overdue less months overdue months overdue total trade receivables weighted average expected loss rate gross carrying amount trade receivables loss allowance march trade receivables weighted average expected loss rate gross carrying amount trade receivables loss allowance loss allowance contains expected credit loss specific loss provisions burberry annual report financial statements notes financial statements financial risk management continued credit risk continued trade receivables continued closing loss allowances receivables reconcile follows receivables april effect foreign exchange rate changes impairment provision recognised profit loss year receivables written year uncollectable unused amount reversed march effect foreign exchange rate changes impairment provision recognised profit loss year receivables written year uncollectable unused amount reversed march aggregate march movement impairment provision trade receivables recorded income statement net charge million last year million relates contracts customers maximum exposure credit risk reporting date respect trade receivables approximated carrying amount balance sheet receivables excluding trade receivables counterparty credit risk receivables reviewed regular basis impairment assessed follows inception receivable recorded net expected month credit losses significant change credit risk occurs life receivable credit losses recorded profit loss account effective interest calculated using gross carrying amount asset loss event occurs effective interest calculated using amortised cost asset net credit losses year ended march group entered retail leasing arrangement republic korea part arrangement krw billion million year interest free loan provided landlord group holds registered mortgage leased property equivalent value loan acts collateral march discounted fair value loan million last year million book value loan recorded amortised cost million last year million arrangement group hold collateral security management considers security provided mortgage sufficient risk mitigation hence credit loss relating receivable significant financial assets respect credit risk arising financial assets comprise cash short term deposits certain derivative instruments group exposure credit risk arises default counterparty maximum exposure equal carrying value instruments group policies limit amount credit exposure financial institution deposits funds independently rated financial institutions minimum rating required operational purposes total million last year million held institutions rating march amounts monitored weekly basis treasury committee burberry annual report financial statements notes financial statements financial risk management continued liquidity risk group financial risk management policy aims ensure sufficient cash maintained meet foreseeable needs close market positions due dynamic nature underlying business group treasury aims maintain flexibility funding keeping committed credit lines available details refer note short term trade payables accruals bank overdrafts mature within one year less carrying value financial liabilities due less one year equal contractual undiscounted cash flows exception lease liabilities undiscounted contractual cash flows lease liabilities due less one year million last year million maturity profile contractual undiscounted cash flows group non current financial liabilities excluding derivatives used hedging follows march march lease liabilities total lease liabilities total year years years years years years years years years total financial liabilities march non current financial liabilities relate borrowings million last year borrowings million refer note capital risk board reviews group capital allocation policy annually group capital allocation framework defines priorities uses cash underpinned principle maintain strong balance sheet solid investment grade credit rating subject availability capital framework four priorities use cash generated operations investment business drive organic growth maintaining progressive dividend policy continuing pursue selective inorganic strategic investment extent surplus capital needs providing additional returns shareholders march group net cash million last year million borrowings million last year million total equity excluding non controlling interests million last year million borrowings march relate medium term notes face value million last year million details refer note potential additional sources funding available group include undrawn additional bank facilities longer term debt equity funding group current capital resources together potential additional sources funding considered sufficient address group capital risk burberry annual report financial statements notes financial statements employee costs staff costs including cost directors incurred year shown directors remuneration separately disclosed directors remuneration report pages forms part financial statements includes share options awards performance obligations met notional gains arising future exercise excludes charge respect share options awards recognised group income statement weeks march weeks march wages salaries social security costs pension costs termination benefits equity settled share based payment charge total employee costs weeks march include charge million arising result group restructuring programme presented adjusting item refer note details pension costs include contributions group defined contribution plan eligible employees average number full time equivalent employees including executive directors year follows number employees weeks march weeks march emeia americas asia pacific total emeia comprises europe middle east india africa shares share options granted directors employees group following share based compensation schemes operation year share based compensation scheme participants maximum vesting period options awards granted method settlement vesting requirements burberry share plan bsp award schemes executive directors years equity cash continued service conditional upon meeting underpins total revenue roic reasonable progress respect strategy elevate brand build sustainable future burberry share plan bsp award schemes management years equity cash continued service executive share plan esp nil cost option schemes management years equity cash thresholds targets esp schemes assessed number shares awarded approved sharesave saye option schemes employees years equity cash continued service free share plan award schemes employees years equity cash continued service recruitment share award ceo years equity continued service conditional upon burberry achieving specified total shareholder return performance end three year period applicable equity swaps entered cover future employer national insurance liability overseas equivalent may arise respect schemes fair value charge relating burberry share plan bsp award schemes sharesave saye schemes free share plan schemes million million million respectively last year million million million respectively fair value charge relating remaining schemes million last year million burberry annual report financial statements notes financial statements employee costs continued movements year number weighted average exercise price waep movements share based compensation schemes year follows weeks ended march burberry share plan bsp award schemes executive share plan esp nil cost option schemes sharesave saye option schemes free share plan award schemes recruitment share award awards waep options waep options waep awards waep awards waep outstanding march granted forfeited exercised outstanding march exercise price range weighted average remaining contractual life years exercisable march weeks ended march burberry share plan bsp award schemes executive share plan esp nil cost option schemes sharesave saye option schemes free share plan award schemes recruitment share award awards waep options waep options waep awards waep awards waep outstanding april granted forfeited exercised outstanding march exercise price range weighted average remaining contractual life years exercisable march weighted average share price date exercise awards exercised vested period last year burberry annual report financial statements notes financial statements employee costs continued valuation models key assumptions used year awards granted bsp schemes july november december fair value respectively values based closing share price ordinary share date grant sharesave saye option schemes valued using black scholes option pricing model recruitment share award valued using monte carlo pricing model assumptions applied options granted respective periods follows saye scheme black scholes weeks ended march weeks ended march grant date december december expected dividend yield expected volatility year year term risk free interest rate year year term expected life option years weighted average exercise price share price grant weighted average fair value options granted year year term recruitment share award monte carlo weeks ended march grant date december expected dividend yield expected volatility risk free interest rate expected life awards years discount post vesting restrictions share price grant weighted average fair value awards granted volatility determined calculating historical annualised standard deviation market price burberry group plc shares period time prior grant equivalent expected life option acquisition subsidiary october burberry italy burberry wholly owned subsidiary acquired shareholding burberry tecnica italian technical outerwear supplier pattern spa company incorporated italy total cash consideration million result acquisition net assets million acquired goodwill million recognised adjustments acquisition accounting weeks march related party transactions transactions company subsidiaries related parties company eliminated consolidation disclosed note total compensation respect key management defined board directors certain members senior management considered related party transaction total compensation respect key management year follows weeks march weeks march salaries short term benefits social security costs share based compensation awards options settled shares termination benefits total pension cash allowance included within salaries short term benefits social security costs group donates year burberry foundation independent charity meets criteria reported related party accordance ifrs charitable donations burberry foundation weeks march million last year million material related party transactions year burberry annual report financial statements notes financial statements subsidiary undertakings investments accordance section companies act full list related undertakings march including country incorporation percentage share ownership disclosed unless otherwise stated undertakings indirectly owned burberry group plc operate country incorporation subsidiary undertakings consolidated march company name country territory incorporation interest holding registered office burberry pacific pty ltd australia ordinary shares burberry austria gmbh austria ordinary shares sandringham bahrain bahrain ordinary shares burberry antwerp belgium ordinary shares burberry brasil comércio artigos vestuário acessórios ltda brazil quota burberry canada inc canada common shares burberry shanghai trading ltd mainland china equity interest burberry czech rep czech republic ordinary shares burberry france sasu france ordinary shares burberry deutschland gmbh germany ordinary shares burberry asia holdings limited hong kong china ordinary shares burberry china holdings limited hong kong china ordinary shares burberry asia limited hong kong china ordinary shares burberry hungary kereskedelmi korlátolt felelősségű társaság hungary ordinary shares burberry india private limited india ordinary shares burberry ireland investments unlimited company ireland ordinary shares ordinary shares burberry ireland limited ireland ordinary shares burberry italy rome italy quota burberry italy italy quota burberry tecnica italy quota burberry manifattura italy quota burberry japan japan ordinary shares burberry kuwait general trading textiles accessories company kuwait capital units burberry macau limited macau china quota burberry malaysia sdn bhd malaysia ordinary shares horseferry méxico mexico ordinary fixed shares ordinary variable shares horseferry méxico servicios administrativos mexico ordinary fixed shares burberry netherlands netherlands ordinary shares burberry new zealand limited new zealand ordinary shares burberry qatar qatar ordinary shares burberry korea limited republic korea common stock burberry retail llc russian federation participatory share burberry saudi company limited kingdom saudi arabia ordinary shares burberry singapore distribution company pte ltd singapore ordinary shares burberry spain retail spain ordinary shares burberry suisse switzerland ordinary shares burberry taiwan ltd taiwan area china common shares burberry thailand limited thailand common shares burberry annual report financial statements notes financial statements subsidiary undertakings investments continued company name country incorporation interest holding registered office burberry turkey giyim toptan perakende satış limited şirketi turkey ordinary shares burberry llc united arab emirates ordinary shares burberry middle east llc united arab emirates ordinary shares burberry espana holdings limited united kingdom ordinary shares burberry unlimited united kingdom ordinary shares burberry limited united kingdom ordinary shares burberry europe holdings limited united kingdom ordinary shares burberry finance limited united kingdom ordinary shares burberry haymarket limited united kingdom ordinary shares burberry holdings limited united kingdom ordinary shares burberry international holdings limited united kingdom ordinary shares burberry latin america limited united kingdom ordinary shares burberry limited united kingdom ordinary shares burberry london limited united kingdom ordinary shares burberrys limited united kingdom ordinary shares sweet street developments limited united kingdom ordinary shares scotch house limited united kingdom ordinary shares thomas burberry holdings limited united kingdom ordinary shares thomas burberry limited united kingdom ordinary shares woodrow universal limited united kingdom ordinary shares woodrow universal pension trustee limited united kingdom ordinary shares burberry wholesale limited united states class common stock class common stock burberry limited united states class common stock class common stock burberry north america inc united states common stock group indirect holding issued share capital nominee held directly burberry group plc group share profits burberry middle east llc well majority share profits burberry middle east llc subsidiaries kuwait qatar respectively group power control companies agreements relating burberry middle east llc burberry retail llc stores closed since march subsidiary take audit exemption allowed section companies act year ended march burberry annual report financial statements notes financial statements subsidiary undertakings investments continued ref registered office address level george street sydney nsw australia kohlmarkt wien austria building flat road block manama sea front bahrain waterloolaan brussels belgium city são paulo state são paulo rua rocio pavement condominium atrium suites subdistrict vila olímpia cep brazil king street west first canadian place suite toronto canada floor actual floor wheelock square nanjing west road jing districts shanghai people republic china praha pařížská psč czech republic rue faubourg saint honoré paris france königsallee düsseldorf germany flat devon house taikoo place king road quarry bay hong kong devon house taikoo place king road quarry bay hong kong budapest dózsa györgy hungary floor international trade tower nehru place new delhi south east delhi delhi india one spencer dock north wall quay dublin ireland one spencer dock north wall quay dublin ireland via manzoni cap milano italy via italia collegno italy via delle fonti scandicci italy ginza chome chuo tokyo japan hawally block street plot unit floor kuwait macaushop unit mezzanine level shop unit level shoppes four seasons estrada baía senhora esperança taipa macau plaza damansara jalan medan setia bukit damansara kuala lumpur wilayah persekutuan malaysia edgar allan poe col polanco delg miguel hidalgo mexico city mexico pieter cornelisz hooftstraat amsterdam netherlands level hsbc tower quay street auckland new zealand first floor building street waab zone marikh rayyan municipality south doha qatar dosan daero gangnam seoul republic korea ulitsa petrovka floor premise rooms moscow russian federation floor building olaya street olya district riyadh kingdom saudi arabia orchard road ngee ann city singapore passeig gràcia barcelona spain route chêne trust services genève switzerland changchun songshan dist taipei city taiwan office level gaysorn tower ratchadamri road lumpini sub district pathumwan district bangkok thailand reşitpaşa mahallessi eski büyükdere cad windowist tower sit sariyer istanbul turkey dubai design district premises floor building dubai design district united arab emirates dubai design district building level unit box dubai united arab emirates horseferry house horseferry road london united kingdom corporation service company state street albany usa corporation service company little falls drive wilmington usa contingent liabilities group subject claims tax audits number jurisdictions arise ordinary course business typically relate value added taxes sales taxes customs duties corporate taxes transfer pricing payroll taxes various contractual claims legal proceedings matters appropriate estimated cost known obligations provided financial statements accordance group accounting policies group expect outcome current similar contingent liabilities material effect group financial position burberry annual report financial statements five year summary unaudited five year summary unaudited end year revenue channel retail wholesale retail wholesale licensing total revenue profit channel retail wholesale licensing adjusted operating profit segmental analysis adjusted profit retail wholesale gross margin retail wholesale operating expenses percentage sales retail wholesale operating margin licensing operating margin adjusted operating profit margin summary profit analysis adjusted operating profit net finance expense adjusted profit loss taxation adjusting items profit loss taxation taxation non controlling interest attributable profit loss retail wholesale revenue product division accessories womenswear menswear childrenswear retail wholesale revenue destination asia pacific emeia americas financial kpis total revenue growth comparable store sales growth adjusted operating profit growth adjusted operating profit margin adjusted diluted eps growth adjusted group return invested capital roic excludes impact adjusting items refer note group policy adjusting items emeia comprises europe middle east india africa growth rate year year underlying change constant exchange rates burberry annual report financial statements five year summary unaudited end year earnings dividends pence per share pence per share pence per share pence per share pence per share adjusted earnings loss per share diluted earnings loss per share diluted diluted weighted average number ordinary shares millions dividend per share interim final end year net cash flow adjusted profit loss tax adjusting items profit loss taxation depreciation amortisation employee share scheme costs net finance expense decrease increase inventories decrease increase receivables increase decrease payables provisions cash items non cash items cash flow operations net interest tax paid net cash flow operations capital expenditure proceeds disposal non current assets payment lease principal related cash flows free cash flow acquisitions dividends purchase shares share buyback proceeds borrowings repayment borrowings exchange difference total movement net cash net cash excludes impact adjusting items refer note group policy adjusting items burberry annual report financial statements five year summary unaudited end year balance sheet intangible assets property plant equipment right use assets inventories trade receivables trade payables lease liabilities taxation including deferred taxation net cash borrowings net assets net assets reconciliation adjusted group roic adjusted operating profit adjusted profit effective tax rate adjusted net operating profit tax net assets deduct cash net overdrafts add back borrowings add back lease debt deduct net tax assets operating assets add back net liabilities related adjusting items deferred consideration restructuring liabilities adjusted operating assets average adjusted operating assets adjusted group roic excludes impact adjusting items refer note group policy adjusting items group adjusted effective tax rate weeks march purposes group roic calculation effective tax rate used burberry annual report financial statements company balance sheet company balance sheet weeks ended march note march march fixed assets investments subsidiaries current assets trade receivables amounts falling due one year trade receivables amounts falling due within one year derivative assets maturing within one year cash bank hand creditors amounts falling due within one year derivative liabilities maturing within one year borrowings net current assets total assets less current liabilities creditors amounts falling due one year borrowings net assets equity called share capital share premium account capital reserve profit loss account total equity loss year million last year profit million directors consider march million last year million profit loss account non distributable financial statements pages approved authorised issue board may signed behalf joshua schulman kate ferry chief executive officer chief financial officer burberry annual report financial statements company statement changes equity company statement changes equity weeks ended march note called share capital share premium account capital reserve profit loss account total equity balance april profit year total comprehensive income year employee share incentive schemes equity share awards exercise share options purchase shares share buyback dividends paid year balance march loss year total comprehensive loss year employee share incentive schemes equity share awards dividends paid year balance march burberry annual report financial statements notes company financial statements basis preparation burberry group plc company parent company burberry group burberry group plc public company limited shares listed london stock exchange company principal business investment incorporated domiciled company registered england wales address registered office horseferry house horseferry road london company sponsoring entity burberry group plc esop trust burberry group plc sip trust collectively known esop trusts financial statements prepared including esop trusts within financial statements company purpose esop trusts purchase shares company order satisfy group share based payment arrangements burberry group plc subsidiaries group global luxury goods manufacturer retailer wholesaler group also licenses third parties manufacture distribute products using burberry trademarks companies comprise group controlled company directly indirectly consolidated financial statements group prepared accordance requirements companies act adopted international accounting standards consolidated financial statements prepared public use obtained horseferry house horseferry road london financial statements company prepared accordance financial reporting standard reduced disclosure framework frs financial statements prepared going concern basis historical cost convention modified derivative financial assets derivative financial liabilities measured fair value profit loss accordance companies act permitted section companies act company presented income statement preparation financial statements conformity frs requires use certain critical accounting estimates also requires management exercise judgement applying company accounting policies refer note financial reporting standard reduced disclosure exemptions company taken advantage applicable disclosure exemptions permitted frs financial statements summarised standard disclosure exemption ifrs share based payments para disclosure number weighted average exercise price share options para disclosure valuation techniques inputs used fair value measurement options para disclosure effect share based payment transactions entity profit loss period ifrs financial instruments disclosures full exemption ifrs fair value measurement para disclosure valuation techniques inputs used fair value measurement assets liabilities ias presentation financial statements para statement cash flows para statement financial position beginning preceding period entity applies accounting policy retrospectively makes retrospective statement items financial statements reclassifies items financial statements para statement compliance ifrs para present comparative information respect paragraph ias para requirement minimum two primary statements including cash flow statements para additional comparative information para cash flow statement information para capital management disclosures ias statement cash flows full exemption ias accounting policies changes accounting estimates errors para requirement disclosure information entity applied new ifrs issued yet effective ias related party disclosures para key management compensation requirements disclose related party transactions entered two members group provided subsidiary party transaction wholly owned member ias impairment assets para burberry annual report financial statements notes company financial statements basis preparation continued going concern company financial statements prepared going concern basis set note group consolidated financial statements burberry group plc new standards amendments interpretations adopted period number new amendments standards effective weeks march material impact financial statements company standards yet adopted certain new accounting standards amendments standards published yet mandatory weeks march early adopted company set note group consolidated financial statements burberry group plc accounting policies following material accounting policies applied preparation financial statements policies consistently applied years presented unless otherwise stated share schemes group operates number equity settled share based compensation schemes services received employees including executive directors consideration equity instruments company instruments used include awards options cost share based incentives measured reference fair value equity instruments awarded date grant appropriate option pricing models including black scholes used determine fair value option awards made fair value takes account impact market performance conditions impact non market performance conditions considered determining fair value date grant vesting conditions relate non market conditions allowed assumptions used number share awards options expected vest estimate number options expected vest revised balance sheet date circumstances employees may provide services advance grant date grant date fair value estimated purpose recognising expense period service commencement period grant date grant company share awards options equity instruments employees subsidiary undertakings group treated capital contribution company financial statements cost share based incentives recognised vesting period awards increase investment subsidiary undertakings corresponding increase equity amounts received group companies relation equity instruments granted employees subsidiary undertaking amount derecognised investments group companies share awards options exercised settled either via issue new shares company shares held esop trusts depending terms conditions relevant scheme new shares issued proceeds received exercise share options net directly attributable transaction costs credited share capital share premium accounts esop shares used difference exercise price cost recognised retained earnings dividend distribution dividend distributions burberry group plc shareholders recognised liability year dividend becomes committed obligation final dividends recognised approved shareholders interim dividends recognised paid investments subsidiaries investments subsidiaries stated cost less provisions reflect impairment value impairment investments subsidiaries investments subsidiaries subject amortisation tested annually impairment impairment loss recognised amount carrying value exceeds recoverable amount recoverable amount higher asset fair value less costs sell value use purpose assessing impairment assets grouped lowest level separately identifiable cash flows cash generating units investments impairment previously recognised reviewed possible reversal impairment reporting date burberry annual report financial statements notes company financial statements accounting policies continued taxation tax expense represents sum current tax expense deferred tax charge current tax based taxable profit year taxable profit differs net profit excludes items income expense taxable deductible years excludes items never taxable deductible current tax liability calculated using tax rates enacted substantively enacted balance sheet date deferred tax recognised using liabilities method temporary differences arising tax bases assets liabilities carrying amounts financial statements however temporary difference arises initial recognition asset liability transaction business combination time transaction affects neither accounting taxable profit loss give rise equal taxable deductible temporary differences deferred tax recognised deferred tax determined using tax rates laws enacted substantively enacted balance sheet date expected apply related deferred income tax asset realised deferred tax liability settled deferred tax assets recognised extent probable future taxable profits available temporary differences utilised financial instruments financial instrument initially recognised fair value balance sheet company becomes party contractual provisions instrument financial asset derecognised contractual rights cash flow expire substantially risks rewards asset transferred financial liability derecognised obligation specified contract discharged cancelled expires initial recognition financial liabilities stated fair value subsequent initial recognition financial liabilities stated amortised cost using effective interest rate method except derivatives held fair value classified fair value profit loss financial assets classified either amortised cost fair value profit loss depending cash flow characteristics assets cash flows solely represent payments principal interest measured amortised cost fair value financial assets liabilities held amortised cost approximate carrying amount due use market interest rates company classifies instruments following categories financial instrument category note classification measurement cash cash equivalents amortised cost amortised cost trade receivables amortised cost amortised cost trade payables financial liabilities amortised cost borrowings financial liabilities amortised cost equity swap contracts fair value profit loss fair value profit loss company primary categories financial instruments listed cash bank hand balance sheet cash bank hand comprises cash held banks cash bank hand held amortised cost subject impairment testing period end trade receivables trade receivables included current assets trade receivables maturities greater months balance sheet date classified trade receivables amounts falling due one year assessment maturities loan receivables takes consideration intention renew loan loan provided facility maturity months balance sheet date receivables held objective collect contractual cash flows therefore initially recognised fair value subsequently measured amortised cost using effective interest rate method less provision impairment provision expected loss receivables established inception modified change credit risk amount movement provision recognised income statement trade payables trade payables included current liabilities except maturities greater months balance sheet date payables initially recognised fair value subsequently measured amortised cost using effective interest rate method burberry annual report financial statements notes company financial statements accounting policies continued financial instruments continued borrowings borrowings initially recognised fair value inclusive transaction costs incurred borrowings subsequently stated amortised cost difference proceeds net transaction costs redemption value recognised income statement period borrowings using effective interest rate method derivative instruments company uses equity swap contracts economically hedge exposure fluctuations company share price impacts social security costs payable group companies relation share based compensation schemes equity swap contracts initially recognised fair value trade date classified fair value profit loss subsequent changes fair value recognised income statement maturity date cash settled equity swaps classified fair value profit loss foreign currency translation functional presentation currency items included financial statements measured using currency primary economic environment company operates functional currency financial statements presented sterling company functional presentation currency transactions foreign currencies transactions denominated foreign currencies translated functional currency exchange rate prevailing date transaction monetary assets liabilities denominated foreign currencies held year end translated functional currency exchange rate ruling balance sheet date closing rate exchange differences monetary items recognised income statement period arise called share capital called share capital classified equity incremental costs directly attributable issue new shares options shown equity deduction net tax proceeds company purchases equity share capital treasury shares consideration paid including directly attributable incremental costs deducted equity attributable owners company shares cancelled reissued disposed shares subsequently sold reissued consideration received net directly attributable incremental transaction costs related income tax effects credited retained earnings value consideration originally paid additional consideration received credited share premium account included equity attributable owners company key sources estimation uncertainty judgements key sources estimation uncertainty preparation financial statements conformity frs requires management make certain estimates assumptions affect reported revenues expenses assets liabilities disclosure contingent liabilities future estimates assumptions based management best estimates date financial statements deviate actual circumstances original estimates assumptions updated appropriate period circumstances change estimates continually evaluated based historical experience factors including expectations future events believed reasonable circumstances key areas estimates assumptions applied significant risk causing material adjustment carrying value assets liabilities discussed details company accounting policies relation areas provided note impairment investments subsidiaries investments subsidiaries subject amortisation tested annually impairment review potential impairment conducted recoverable amount determined based higher investment fair value less costs sell value use calculations prepared basis management assumptions estimates estimates also applied whether reverse certain investment impairments management taken view impairment charge appropriate investments burberrys limited burberry italy given balance sheet march performance year present value future cashflows refer note details investments burberry annual report financial statements notes company financial statements key sources estimation uncertainty judgements continued key judgements applying company accounting policies judgements decisions made applying accounting policies significant impact amounts recognised company financial statements details company accounting policies provided note key judgements arising current year prior year significant impact amounts recognised company financial statements weeks march march investments subsidiaries march additions impairment charges march company reviewed recoverable value investments identify indication impairment carrying value applicable value use estimated using management best estimates future cash generation investments company impaired carrying value investments apart million impairment charge relation burberrys limited million charge relation burberry italy cash generation long term considered sufficient support carrying value current year impairment charge subject high level estimation uncertainty subsidiary undertakings investments burberry group listed note group financial statements trade receivables march march amounts owed group companies prepayments trade receivables amounts falling due one year amounts owed group companies prepayments trade receivables amounts falling due within one year total trade receivables amounts owed group companies interest bearing unsecured included within amounts owed group companies falling due one year interest bearing loans receivable million facility maturity date june million facility maturity date february interest rates applied loans sonia respectively included within amounts owed group companies falling due within one year interest bearing loans receivable million facility maturity date september interest rates applied loan company impairment policies calculation loss allowances ifrs detailed note burberry annual report financial statements notes company financial statements creditors march march amounts owed group companies creditors amounts falling due one year march march amounts owed group companies payables creditors amounts falling due within one year total creditors payables comprise interest amounts owed group companies falling due one year include interest bearing loans million last year million interest rate earned set annually based sonia recent update loans unsecured repayable june amounts owed group companies falling due within one year include interest bearing loans million repayable june last year million interest rate earned set annually based euribor remaining amounts million unsecured interest free repayable demand last year million borrowings march march maturity carrying value fair value carrying value fair value mtn sustainability linked bond sep mtn fixed rate bond jun total proceeds sustainability bond used group finance projects support group sustainability agenda financial penalties using proceeds anticipated interest sustainability bond payable semi annually proceeds bond movements bond non cash group entered interest rate swaps reduce level fixed rate debt accordance group treasury policy entered swaps fair value hedge relationships bond interest bond payable semi annually interest rate swaps held company company access group million multi currency revolving credit facility rcf syndicate banks maturing november year group entered million multi currency rcf syndicate banks maturing march company also access agreement contains option allow group extend additional one year exercisable consent syndicate drawdowns repayments rcfs current prior year march outstanding drawings company compliance financial covenants within facilities compliance throughout financial period burberry annual report financial statements notes company financial statements credit risk company principal financial instruments comprise cash borrowings trade receivables trade payables arising directly operations trade receivables trade receivables balance comprises intercompany loans companies within group group companies assessed reporting date ability repay outstanding balances amounts owed group companies march comprise million owed burberry limited nil owed group companies last year million owed burberry limited nil owed group companies counterparty credit risk trade receivables reviewed regular basis assessed impairment follows inception receivable recorded net expected month credit losses significant increase credit risk occurs life credit losses recorded profit loss account effective interest calculated using gross carrying amount asset loss event occurs effective interest calculated using amortised cost asset net credit losses company significant debtor burberry limited holder burberry brand main operating company group based liquidity expected cash generation expected month credit loss burberry limited trade receivables considered significant result impairment recorded amounts owed group companies march financial assets respect credit risk arising financial assets comprise cash certain receivables company exposure credit risk arises default counterparty maximum exposure equal carrying value instruments company policies limit amount credit exposure financial institution deposits funds independently rated financial institutions minimum rating required operational purposes called share capital allotted called fully paid share capital number ordinary shares last year march allotted exercise options year march company general authority shareholders renewed annual general meeting repurchase maximum issued share capital share buy back programme current period prior weeks march company entered agreements purchase fair value total million shares excluding stamp duty fees two share buy back programmes million programmes completed prior year cost shares purchased company part share buyback programme offset profit loss account amounts paid reduce profits available distribution company shares cancelled transfer made profit loss account capital reserve equivalent nominal value shares purchased subsequently cancelled weeks march shares cancelled last year million shares march company held million treasury shares last year million market value million last year million based share price reporting date treasury shares held company related share buyback programme completed weeks april weeks march million treasury shares transferred esop trusts last year million weeks march treasury shares cancelled last year none cost shares purchased esop trusts offset profit loss account amounts paid reduce profits available distribution company march cost shares held esop trusts offset profit loss account million last year million march esop trusts held million shares last year million company market value million last year million weeks march esop trusts company waived entitlement dividends burberry annual report financial statements notes company financial statements dividends weeks march weeks march prior year final dividend paid per share last year interim dividend paid nil per share last year total directors elected declare interim final dividend respect weeks march last year financial guarantees companies acting guarantor facilities described note consist burberry group plc burberry limited burberry asia limited burberry wholesale limited burberry limited based liquidity expected cash generation burberry limited expected credit loss respect financial guarantees march considered significant result liability recorded last year nil potential liability may arise future one group members defaults loan facilities guarantor including burberry group plc would liable cover amounts outstanding including principal interest elements audit fees company incurred audit fees million current year borne burberry limited last year million employee costs company employees therefore employee costs included financial statements weeks march last year nil burberry annual report shareholder information shareholder information website investors section burberry group plc website burberryplc com contains wide range information including regulatory news share price information dividend history share analysis investment calculator financial results announcements frequently asked questions financial calendar also possible sign receive email alerts rns news press releases relating burberry group plc www burberryplc com alerts duplicate accounts shareholders one account due inconsistencies account details may avoid duplicate mailings contacting equiniti requesting amalgamation burberry share accounts burberry share dealing burberry shares traded banks building societies stockbrokers equiniti offers telephone internet dealing service terms conditions details commission charges available request telephone dealing please telephone monday friday internet dealing visit www shareview dealing shareholders need reference number found burberry share certificate annual general meeting agm agm held wednesday july burberry headquarters horseferry house horseferry road london notice meeting includes details business conducted meeting available company website burberryplc com voting results agm also accessible burberryplc com shortly meeting shareholder privacy notice please see shareholder privacy notice https www burberryplc com investors shareholder centre shareholder privacy notice html details burberry collects uses shareholders personal information general shareholder enquiries enquiries relating shareholdings transfer shares change name address lost share certificates dividend cheques referred company registrar equiniti aspect house spencer road lancing west sussex website www shareview telephone managing shares online shareholders employees manage burberry holdings online registering shareview secure online platform provided equiniti registering simple offers range benefits allowing shareholders access shareholding information view share balance dividend history key shareholder details real time opt electronic communications receive shareholder updates reports notifications quickly securely via email buy sell shares conveniently equiniti share dealing service update personal details easily update address contact information banking details ensure smooth communication dividend payments secure dividends payments option dividends paid directly bank account avoiding lost outdated cheques vote online general meetings participate company decisions submitting vote proxy online advance burberry encourages shareholders register electronic communications enabling faster efficient information sharing also contributing environmental sustainability reducing paper usage makes valuable contribution global footprint register www shareview american depositary receipts sponsored level american depositary receipt adr programme enable investors purchase adrs dollars adr represents one burberry ordinary share queries relating adrs burberry please use following contact details bank new york mellon shareholder correspondence box providence usa tel toll free within usa tel international email enquiries shrrelations cpushareownerservices com website www mybnymdr com burberry annual report financial calendar agm july first quarter trading update july interim results announcement november third quarter trading update january preliminary results announcement may registered office burberry group plc horseferry house horseferry road london registered england wales registered number sharegift shareholders small number shares value makes uneconomical sell may wish consider donating shares charity sharegift donation scheme operated orr mackintosh foundation sharegift donation form obtained equiniti information available www sharegift org telephone tips protecting information keep documentation contains shareholder reference number safe place shred unwanted documentation inform registrar equiniti promptly change address aware dividend payment dates contact equiniti receive dividend cheque better still make arrangements dividend paid directly bank account consider holding shares electronically crest account via nominee unauthorised brokers boiler room scams shareholders advised wary unsolicited advice offers buy shares discount offers free company reports typically overseas based brokers target shareholders offering sell often turn 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shareholder information services online www shareview shareholder information burberry annual report www burberryplc com