2002/03 Preliminary Results

May 22, 2003

John Peace
Chairman

2002/03 Highlights
Exceeded expectations set at IPO Strong financial performance Excellent strategic progress Enhanced strong management team

Rose Marie Bravo

Chief Executive

Year Financial Highlights

Revenue (millions)

593.6 499.2 427.8

2000/2001

2001/2002

2002/2003

Retail

Wholesale

Licensing

Year Financial Highlights

Gross Margin
56.0%

50.3% 47.8%

2000/2001

2001/2002

2002/2003

Year Financial Highlights

Operating Income (millions)*

116.7 90.3 68.7

2000/2001

2001/2002

2002/2003

Margin

16.1%

18.1%

19.7%

* EBITA before IPO-related charges

Multiple Growth Opportunities

Update on Key Strategies

Products

Channels

Regions

Revenue by Product Category

Year 2002/03
Other 1% Licensing 10% Menswear 27% Accessories 29% Womenswear 33%

Growth Rates
Menswear Womenswear Accessories 9% 20% 35%

Product Milestones
Enhanced in-store positioning Increased accessory penetration Expansion of global licensee product Strengthened Spring/ Summer collection Icon evolution Gift destination

Wholesale Progress
North America UK & Europe Asia

Travel

Accessories Achievements

Accessories Achievements
Timepieces

Accessories Achievements
Eyewear

Apparel Achievements
Autumn/Spring Balance

Apparel Achievements
Cult Classic Evolution

Apparel Achievements
Duffle Evolution

Revenue by Channel of Distribution

Year 2002/03

License 10%

Growth Rates
Retail 46% 6% 9%

Retail 38%

Wholesale

Wholesale 52%

Licensing

Repositioning Progress in Spain

Wholesale Channel
Barcelona store impact Major customer developments accessory shop-in-shops co-staffing arrangements Merchandising initiatives Red Label International product Volumes stabilising

Japan

2002/03 Performance
10% volume growth Solid growth across categories Key drivers brand revitalisation efforts key product category emphasis sophisticated segmentation

Volume Growth Distribution

Accessories, Home

Blue/Black

Core Apparel

Japan

Key Initiatives
Organisation initiatives Accessories strategy work with licensees imports test Additional freestanding stores

Year 2002/03

Revenue by Region
RoW 1%

Asia 24% Europe 51% US 24%

Growth Rates
US Asia Europe 27% 47% 6%

Eugenia Ulasewicz
President US

US Development
Revenue Growth

27%

22%

2000/2001

2001/2002

2002/2003

US Development

Distribution Channels
Licenses 1%

Wholesale 25%

Retail 74%

US Development
Wholesale
Concentrated with prestige retailers Growth through adding products to existing doors improving in-store positioning and display

US Development
Retail
New York flagship 2003/04 initiatives 3 new stores 6 renovations

US Development
New York Store

US Development
2003/2004 Growth
New Stores Houston Las Vegas Tysons Corner Renovations San Francisco Boston Atlanta Costa Mesa Manhasset Oakbrook

US Development

Gifts Core Classics

Financial Review

Mike Metcalf
COO & CFO

Turnover
Growth

6 Months to 31 March
25.4m (5.8m) 39.4m 262.1m (0.9m) 320.2m

+ 22% overall + 24% at constant exchange rates Asia contributed 25.4 million (+ 9%) + 15% underlying growth

2001/02 Underlying growth

Asia

Exchange rates

Other

2002/03

Retail Revenue
Growth

6 Months to 31 March
28.8m (5.2m) 143.7m 27.7m

+ 55% overall + 30% underlying Double-digit same store growth Q4 impacted by external events
2001/02 Underlying growth Asia Exchange rates 2002/03

92.4m

Wholesale Revenue
6 Months 31 March
Growth + 4% overall + 6% underlying High single-digit growth across SS 03 Excellent shipping performance in Q4
2001/02 Underlying growth Asia Exchange rates Other 2002/03

9.1m 140.0m

(3.3m)

0.5m

(0.9m) 145.4m

Licensing Revenue
6 Months to 31 March
Growth + 4% overall + 9% underlying Japan the primary factor modest volume gain royalty rate increase Yen depreciation c. 5% Yen hedges secure 3 million gain vs. spot rates in 2002/03
2001/02 Underlying growth Asia Exchange rates 2002/03

2.6m 29.7m

(0.1m) (1.1m)

31.1m

Gross Profit Margin

Gross margin growth product mix

Performance by Half Year

% 56

55.7% 52.5%

56.2%

54

retail expansion other factors Asia acquisition effect

52

50

47.8%

48

46
First half 2001/02 Second half 2001/02 First half 2002/03 Second half 2002/03

Operating Expenses
Retail expansion and new store costs Asia integration Impairment charge Investment in infrastructure

Performance by Half Year

% 36 35 34 33 32 31 30
First half 2001/02 Second half 2001/02 First half 2002/03 Second half 2002/03

33.9% 30.3%

35.6%

36.9%

EBITA

6 Months to 31 March
Impact of Asia acquisitions Underlying growth momentum
9.4m 48.5m

6.2m

(2.5m)

61.6m

2001/02 Underlying growth

Asia

Exchange rates

2002/03

EBITA Margin

6 Months to 31 March
6 months to 31 March 2001/02 2002/03 Wholesale and retail Licence Total 9.5% 89.9% 18.6% 11.4% 92.3% 19.3%

Profit and Loss Account

Year to 31 March
2001/02 m 2002/03 Before IPO-related items m

EBITA Goodwill amortisation EBIT Net interest expense Pre-tax profit Tax Profit after tax EPS (pre-goodwill amortisation) Effective tax rate (excluding goodwill amortisation)

90.3 (4.9) 85.4 (0.6) 84.8 (28.3) 56.5 NM NM

116.7 (6.4) 110.3 (0.9) 109.4 (39.9) 69.5 14.9p 34.7%

Taxation
Rate higher than anticipated in 2002/03 non deductible elements prior year adjustment Projecting 33% tax rate

Cash Flow from Operations

Year to 31 March
2001/02 m EBITA Depreciation and similar charges Decrease (increase) in stocks Increase in debtors Increase (decrease) in creditors Other Cash flow from operations 90.3 14.0 (7.0) (5.2) (2.2) 0.2 90.1 2002/03 m 116.7 19.0 5.2 (2.4) 25.0 1.5 165.0

Cash Flow

Year to 31 March
2001/02 m Cash inflow from operations Net capital expenditure Tax paid Purchase of own shares Acquisition related payments Other Cash flow before dividends and financing items Net Cash at year end 90.1 (38.9) (17.6) (4.5) (0.4) 28.7 N/A 2002/03 m 165.0 (55.5) (30.6) (4.5) (26.8) (0.5) 47.1 79.6

Cash Flow and Capitalisation

Tax paid reduced by 7 million pre-IPO amounts paid via GUS balances 3 million deferrals in Asia (reversing in 2003/04) Final dividend (10 million) payable in August 3p per share for full year (20% payout ratio) Strong capitalisation

2003/04 Outlook
Considerable uncertainty for industry Retail continuing impact of events in Q4 2002/03 +10% expansion in selling space Wholesale initial orders indicate high single-digit growth for AW 03 potential impact of recent events on SS 04 volumes Japan licensee partners anticipate modest volume growth Current expectations meet consensus assuming improved conditions by Autumn

2002/03 Highlights
Exceeded expectations set at IPO Strong financial performance Excellent strategic progress Enhanced strong management team

Disclaimer
Certain statements made in this announcement are forward looking statements. Such statements are based on current expectations and are subject to a number of risks and uncertainties that could cause actual results to differ materially from any expected future results in forward looking statements. This announcement does not constitute an invitation to underwrite, subscribe for or otherwise acquire or dispose of any Burberry Group plc shares. Past performance is not a guide to future performance and persons needing advice should consult an independent financial adviser.