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$JURZLQJ%7WRGHOLYHUVXVWDLQDEOHSURƬWDEOHUHYHQXHJURZWK Our strategy Broaden and deepen our customer relationships Transform our costs 'HOLYHU{VXSHULRU customer service Inputs Invest for growth Outputs & Outcomes Value creation TV and content Fibre Our culture Mobility DQGIXWXUH{ voice UK business markets Leading global companies A healthy organisation Our values Customer Team Honesty Change Pride :HDUH KHUHIRURXU customers :HKHOS HDFKRWKHU DFKLHYH{PRUH :HDUHKRQHVW DQG{UHVSHFWIXO :HDOOPDNH FKDQJH KDSSHQ :HDUHSURXG WRPDNHD GLƪHUHQFH Risks Find out more Our business model inputs on page 28 PC_FRONT.indb 5 Our business model outputs RXWFRPHV{RQSDJH 28 Our Governance on page 93 Our Risks on page 41 5/15/2015 1:46:55 AM BT Group plc Annual Report 2015 Key performance indicators :HPHDVXUHRXUSURJUHVVXVLQJIRXUNH\SHUIRUPDQFH LQGLFDWRUV.3,V 2XUNH\PHDVXUHRIWKHJURXSoVUHYHQXHWUHQGXQGHUO\LQJUHYHQXH H[FOXGLQJWUDQVLWZDVGRZQLQOLQHZLWKRXURXWORRNRIEURDGO\ ƮDW%7&RQVXPHUUHYHQXHZDVXSKHOSHGE\VWURQJJURZWKLQRXU ƬEUHEURDGEDQGDQG79FXVWRPHUEDVHV7KLVZDVRƪVHWE\GHFOLQHVLQ RXU{RWKHUOLQHVRIEXVLQHVVLQSDUWGXHWRUHJXODWRU\SULFLQJSUHVVXUHV :HJUHZDGMXVWHGHDUQLQJVSHUVKDUHE\1RUPDOLVHGIUHHFDVKƮRZ RI~PZDVXSDQGDKHDGRIRXURXWORRNIRUWKH\HDURIDERYH ~EQ2XUFRQWLQXHGIRFXVRQFRVWWUDQVIRUPDWLRQFDSLWDOH[SHQGLWXUH HƯFLHQFLHVDQGGHEWUHGXFWLRQKHOSHGXVDFKLHYHWKHVH )LQDOO\ZHKDYHLPSURYHGRXUFXVWRPHUVHUYLFHDOWKRXJKZHZDQWWR DFKLHYHPRUHn5LJKW)LUVW7LPHo5)7LVRXUNH\PHDVXUHRIFXVWRPHU VHUYLFHDQGLVXSFRPSDUHGZLWKDLQFUHDVHODVW\HDU$OOOLQHV RIEXVLQHVVFRQWULEXWHGWRWKLVLPSURYHPHQW:HGHOLYHUHGVLJQLƬFDQWO\ EHWWHUUHSDLUSHUIRUPDQFHDQGVKRUWHUOHDGWLPHVIRUSURYLGLQJ8.OLQHV DQGEURDGEDQG%7*OREDO6HUYLFHVPDGHODUJHJDLQVLQGHOLYHULQJPRUHRI LWVSURGXFWVZLWKLQWDUJHWWLPHV/RRNLQJDKHDGZH{QHHGWRLPSURYHRXU SURYLVLRQRI(WKHUQHWVHUYLFHVDQGUHFRYHUPRUHTXLFNO\ZKHQZHGRIDLO WRPHHWRXUSURPLVHV Trend in underlying revenue excluding transit Year ended 31 March 15 (2.0) 2011 2012 a Financial outlook which was 2013 2XWORRNa %URDGO\OHYHO given at the start of the year. 2014 2015 0 2011 2012 2013 2014 2015 Result 'RZQ 1RUPDOLVHGIUHHFDVKƮRZ Year ended 31 March Customer service improvement At 31 March £m 2,900 2014 18.7 1.5 2013 4.7 (4.0) 2012 2015 2015b 3.0 15 3.0 2,830 % 20 2,700 2,300 2012 2013 a Financial outlook which was given at the start of the year. 2XWORRNa $ERYH~EQ 10.5 2,307 2011 10 2,450 2,076 2,500 1,900 31.5 5 (3.0) 2,100 26.3 10 (2.5) 2,300 23.4 (0.4) 20 28.2 0.5 25 (1.5) (3.5) 2XUVWURQJƬQDQFLDOGLVFLSOLQHKDVKHOSHGXVIXQGLQYHVWPHQWVLQRXU ƬYHVWUDWHJLFJURZWKDUHDV:HDQQRXQFHGWKHSURSRVHGDFTXLVLWLRQRI ((IRU~EQVHFXUHGH[FOXVLYHULJKWVWR)$3UHPLHU/HDJXHIRRWEDOO PDWFKHVIRUDIXUWKHUWKUHH\HDUVDQGH[WHQGHGRXU$YLYD3UHPLHUVKLS 5XJE\ULJKWV$VZHOODVJURZLQJRXU(%,7'$DQGIUHHFDVKƮRZZHKDYH UHGXFHGRXUQHWGHEWDQGPDGHIXUWKHUVLJQLƬFDQWFRQWULEXWLRQVWRWKH %73HQVLRQ6FKHPH2XUSURSRVHGIXOO\HDUGLYLGHQGWRVKDUHKROGHUVLV SXS{ 30 (3.1) (1.9) (3.0) (1.0) :HKDYHPDGHIXUWKHUSURJUHVVLQWUDQVIRUPLQJRXUFRVWV'HVSLWH FRQWLQXLQJWRLQVRXUFHMREVQHWODERXUFRVWVZHUHGRZQDVZH 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Target 8SDWOHDVW Result 8S Find out more Our KPIs on page 80 PC_FRONT.indb 6 2XUƬQDQFLDOSHUIRUPDQFH from page 77 5/15/2015 1:46:56 AM Overview The Strategic Report Purpose and strategy Delivering our strategy 0ur lines of business Group performance Governance Financial statements Additional information 7 Financial highlights &KDQJH Proposed full year dividend <HDUHQGHG0DUFK 2015 &KDQJH p 10.9p ^ 2,500 2,400 6,271 6,018 6,116 5,840 2015 1% 0% 3% 3% 6,000 4,000 2,000 2,000 2013 2014 reported normalisedc 2015 2014 2015 5% 7% 28% 16% a Adjusted revenue by line of business Year ended 31 March 2015 11% Openreach 2014 5,119 2,700 2,600 2,300 5,791 11,580 £m 8,000 2,800 2,100 reported adjusteda 2015 Net debt At 31 March £m 2,900 2,200 6,143 11,961 12,171 4% 5% Free cash ƮRw Year ended 31 March 28% Openreach (including internal) 0 2013 2014 24% BT Consumer 15% BT Business 2015d a Adjusted EBITDA by line of business Year ended 31 March 2015 41% Openreach 38% BT Global Services 12% BT Wholesale 17% BT Global Services 17% BT Business 9% BT Wholesale 16% BT Consumer See page 54 for commentary on relative contributions by each line of business a,WHPVSUHVHQWHGDVDGMXVWHGDUHVWDWHGEHIRUHVSHFLƬFLWHPV6HHSDJHIRUIXUWKHUGHWDLOV b Before depreciation and amortisation. 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