Overview
The Strategic Report
Purpose and strategy
Delivering our strategy
0ur lines of business
Group performance
Governance
Financial statements
Additional information
77
Group performance
,QWKLVVHFWLRQZHH[SODLQKRZZHKDYH
GRQHWKLV\HDUDJDLQVWRXUNH\SHUIRUPDQFH
LQGLFDWRUV:HVHWRXWWKHƬQDQFLDOUHVXOWV
RIWKHZKROHJURXSDQGZHORRNDWRXU
SHUIRUPDQFHDVDVXVWDLQDEOH{DQGUHVSRQVLEOH
EXVLQHVV
Our progress against our KPls
:HKDYHDJDLQGHOLYHUHGVWURQJƬQDQFLDOUHVXOWV
WKLV\HDUDQGLPSURYHGDVSHFWVRIFXVWRPHUVHUYLFH
78 Group Finance Director’s introduction
*URXSƬQDQFLDOUHVXOWV
80
Group performance
2XUSURJUHVVDJDLQVWRXU.3,V
2XWORRN
,QFRPHVWDWHPHQW
'LYLGHQGV
&DVKƮRZ
1HWGHEW
7D[DWLRQ
&DSLWDOH[SHQGLWXUH
%DODQFHVKHHW
3HQVLRQV
&RQWUDFWXDOREOLJDWLRQV
DQG{FRPPLWPHQWV
90 Delivering societal and environmental
EHQHƬWV
2XUƬQDQFLDOSHUIRUPDQFH
2XUƬQDQFLDOVWUHQJWKJLYHVXVWKHDELOLW\WRLQYHVW
LQ{WKHWKLQJVWKDWVHWXVDSDUW
Delivering societal and environmental
EHQHƬWV
2XUJRDOLVWREHQHƬWVRFLHW\RXUFXVWRPHUVDQGRXU
RZQEXVLQHVVWKURXJKZKDWZHGRDQGKRZZHGRLW
90
91
Alternative performance measures
:HMXGJHDQGH[SODLQRXUSHUIRUPDQFHXVLQJ
FHUWDLQDOWHUQDWLYHSHUIRUPDQFHPHDVXUHV
7KHVHLQFOXGHWUHQGVLQXQGHUO\LQJUHYHQXH
DQGRSHUDWLQJFRVWVH[FOXGLQJWUDQVLWDGMXVWHG
DQGUHSRUWHG(%,7'$DGMXVWHGHDUQLQJVSHU
VKDUHQRUPDOLVHGDQGUHSRUWHGIUHHFDVKƮRZ
DQGQHWGHEWn$GMXVWHGoPHDQVWKDWDPHDVXUH
LVEHIRUHVSHFLƬFLWHPV:HGHVFULEHRQSDJH
ZKDWZHPHDQE\VSHFLƬFLWHPVDQGZH
KDYHGLVFORVHGVSHFLƬFLWHPVIRUWKLV\HDUDQG
WKHODVWWZR\HDUVLQQRWHWRWKHFRQVROLGDWHG
ƬQDQFLDOVWDWHPHQWV
7KHVHDOWHUQDWLYHSHUIRUPDQFHPHDVXUHV
DUHQRWGHƬQHGXQGHU,)56VRWKH\DUH
WHUPHGnQRQ*$$3oPHDVXUHV%XWWKH\DUH
FRQVLVWHQWZLWKKRZPDQDJHPHQWPHDVXUHV
WKHJURXSoVƬQDQFLDOSHUIRUPDQFH:HKDYH
GHƬQHGHDFKRIWKHVHPHDVXUHVRQSDJHV
WRZKHUHZHKDYHSURYLGHGPRUH
GHWDLOLQFOXGLQJ{UHFRQFLOLDWLRQVWRWKHQHDUHVW
PHDVXUHXQGHU{,)56
<RXFDQƬQGDUHYLHZRIWKHSHUIRUPDQFHRIRXUOLQHV
of business this year, from page
53
PC_FRONT.indb 77
5/15/2015 1:47:59 AM
78
BT Group plc
Annual Report 2015
Group Finance Director’s introduction
,Q)HEUXDU\ZHDQQRXQFHGRXUSURSRVHGDFTXLVLWLRQRI((IURP'HXWVFKH
7HOHNRPDQG2UDQJH7KHLQWHJUDWLRQRI%7ZLWK((ZLOODFFHOHUDWHRXU
PRELOLW\VWUDWHJ\DQGLQFUHDVHRXUFDSDFLW\IRUIXWXUHLQYHVWPHQWDQG
SURGXFWLQQRYDWLRQDQGLVDQH[FLWLQJSURVSHFW
2XUƬQDQFLDOREMHFWLYHVDUHWRUHGXFHQHWGHEWZKLOHLQYHVWLQJLQWKH
EXVLQHVVVXSSRUWLQJWKHSHQVLRQIXQGDQGSD\LQJSURJUHVVLYHGLYLGHQGV
2014/15 performance against our outlook
Outlook
Result
%URDGO\OHYHO
'RZQ
~EQs~EQ
~EQ
1RUPDOLVHGIUHHFDVKƮRZb
$ERYH~EQ
~EQ
Dividend per share
8Ss
8S
F~P
~P
Underlying revenue
excluding transita
Adjusted EBITDAb
Share buyback programme
“This year we’ve made some key investment
decisions. We’ve been able to do that because
RIRXUƬQDQFLDOVWUHQJWK$QGZHoYHGHOLYHUHG
RXUƬQDQFLDOUHVXOWVLQOLQHZLWKRUDKHDGRI
RXU{RXWORRNq
2XUƬQDQFLDOSHUIRUPDQFH
7KLV\HDUZHKDYHDJDLQGHOLYHUHG(%,7'$DQGIUHHFDVKƮRZJURZWK
8QGHUO\LQJUHYHQXHH[FOXGLQJWUDQVLWZDVGRZQEURDGO\OHYHOZLWK
ODVW\HDUDVWKHVWURQJJURZWKLQ%7&RQVXPHUZDVRƪVHWE\WKHLPSDFW
RIFKDOOHQJLQJPDUNHWVDQGUHJXODWRU\SULFLQJSUHVVXUHV2XUUHVXOWV
ZHUH{LQOLQHZLWKRUDKHDGRIWKHRXWORRNWKDWZHDQQRXQFHGDWWKH
VWDUW{RIWKH\HDU
2XUEDODQFHVKHHWUHPDLQVVWURQJDQGKDVHQDEOHGXVWRPDNHVRPHNH\
PRYHVLQWKHPDUNHWWKLV\HDUZLWKRXUSODQQHGDFTXLVLWLRQRI((DQG
VHFXULQJIXUWKHUH[FOXVLYHVSRUWVFRQWHQWLQRXU%7&RQVXPHUEXVLQHVV
:HDJUHHGWKHWULHQQLDOYDOXDWLRQRIWKH%73HQVLRQ6FKHPHJLYLQJ
FHUWDLQW\WRWKHUHTXLUHGGHƬFLWSD\PHQWVIRUWKHIROORZLQJWKUHH\HDUV
2YHUWKHSDVWVL[\HDUVZHKDYHUHGXFHGRXURSHUDWLQJFRVWVDQGFDSLWDO
H[SHQGLWXUHLQDJJUHJDWHE\DURXQG~EQ7KLV\HDUZHFRQWLQXHG
WKHJRRGSURJUHVVDOUHDG\PDGHLQWUDQVIRUPLQJRXUFRVWV,Q%7*OREDO
6HUYLFHVZHUHSOLFDWHGWKHIRUHQVLFDSSURDFKDSSOLHGLQWKH8.WRWKH
LQWHUQDWLRQDOEXVLQHVVDQGDFURVVWKHOLQHVRIEXVLQHVVZHLQFUHDVHG
SURGXFWLYLW\ZKLOHUHDOORFDWLQJRXUODERXUUHVRXUFHWREHPRUHHƯFLHQW
7KLVFRQWULEXWHGWRJURZWKLQDGMXVWHG(%,7'$RIWR~EQ
$GMXVWHGSURƬWEHIRUHWD[ZDV~EQXSDQGDGMXVWHG(36RI
SZDVDOVRXS7KHEHQHƬWRIRXUIRFXVLQUHFHQW\HDUVRQ
FDSLWDOH[SHQGLWXUHHƯFLHQFLHVDQGGHEWUHGXFWLRQKDYHƮRZHGWKURXJK
WRWKHVHPHWULFV
a8QGHUO\LQJUHYHQXHH[FOXGLQJWUDQVLWLVGHƬQHGRQSDJH
b$GMXVWHG(%,7'$DQGQRUPDOLVHGIUHHFDVKƮRZDUHGHƬQHGRQSDJH
Outlook for 2015/16
:HFRQWLQXHWRH[SHFWJURZWKLQXQGHUO\LQJUHYHQXHH[FOXGLQJWUDQVLWLQ
:HH[SHFWPRGHVWJURZWKLQDGMXVWHG(%,7'$7KLVLVGHVSLWH
a year-on-year impact of around ~PGXHWRORZHULQFRPHIURPERWK
ODGGHUSULFLQJDQGWKHVDOHRIUHGXQGDQWFRSSHUDKLJKHUSHQVLRQVRSHUDWLQJ
FKDUJHDQGKLJKHUOHDYHUFRVWV:HZLOODOVRLQFXUFRVWVUHODWLQJWRWKHODXQFK
RIRXU8()$&KDPSLRQV/HDJXHDQG8()$(XURSD/HDJXHFRQWHQWLQWKH\HDU
:HH[SHFWQRUPDOLVHGIUHHFDVKƮRZWREHDURXQG~EQ7KLVFRPSDUHV
ZLWK~PLQDQGLVGHVSLWHDQLQFUHDVHRIDURXQG~PLQ
RUGLQDU\SHQVLRQFRQWULEXWLRQV:HDUHPDNLQJQRFKDQJHWRRXUH[SHFWHG
GLYLGHQGDQGVKDUHEX\EDFNRXWORRN
Outlook for 2015/16
Underlying revenue excluding transita
Adjusted EBITDAb
1RUPDOLVHGIUHHFDVKƮRZb
Dividend per share
Share buyback
*URZWK
0RGHVWJURZWK
F~EQ
8Ss
F~P
a'HƬQHGRQSDJH
b'HƬQHGRQSDJH
,WUHPDLQVHVVHQWLDOWKDWZHVWD\IRFXVHGRQRXUFRUHEXVLQHVVZKLOHZH
PRYHLQWRQHZDUHDV,H[SHFWWKHFRPLQJ\HDUWREHERWKH[FLWLQJDQG
UHZDUGLQJIRURXUEXVLQHVV:HKDYHODLGWKHIRXQGDWLRQVWKDWSRVLWLRQ
XV{ZHOOIRUJURZWK
1RUPDOLVHGIUHHFDVKƮRZZDVXS~PDW~PDKHDGRIRXU
RXWORRNIRUWKH\HDURIDERYH~EQ6WURQJFDVKJHQHUDWLRQDFURVVWKH
JURXSKDVHQDEOHGXVWRLQYHVWLQRXUƬYHVWUDWHJLFJURZWKDUHDV
2XUFDSLWDOH[SHQGLWXUHZDV~EQ:HKDYHQRZSDVVHGPRUHWKDQ
PSUHPLVHVZLWKRXUVXSHUIDVWƬEUHEURDGEDQGQHWZRUNRYHU
WKUHHTXDUWHUVRIWKH8.7KLVLQFOXGHVSUHPLVHVZLWKLQ%'8.DUHDVDV
ZHFRQWLQXHWRPDNHSURJUHVVZLWKH[WHQGLQJWKHUHDFKRIƬEUHEH\RQG
RXU{FRPPHUFLDOIRRWSULQW
PC_FRONT.indb 78
Tony Chanmugam
Group Finance Director
0D\
5/15/2015 1:48:01 AM
Overview
The Strategic Report
Purpose and strategy
Delivering our strategy
0ur lines of business
Group performance
Governance
Financial statements
Additional information
79
*URXSƬQDQFLDOUHVXOWV
:HKDYHPDGHJRRGSURJUHVVDQGDJDLQGHOLYHUHGVWURQJƬQDQFLDOUHVXOWVIRUWKH\HDU
:HKDYHPDGHNH\GHFLVLRQVDQGDUHLQYHVWLQJLQWKHWKLQJVWKDWVHWXVDSDUW
2%
2%
adjusteda
10
500
5
2014
adjusteda
2015
2014
2015
0%
6%
14%
12%
2013
reported
adjusteda
£m
2,900
2,800
2,700
2,600
2,500
2,400
2,300
2,200
2,100
2,000
2014
2015
5,791
6,271
6,018
6,116
5,840
2015
2014
2015
1%
0%
3%
3%
2015
2014
2015
2014
2015
4%
7%
3%
12%
&KDQJH
p
10.9p
^
Net debt
At 31 March
2013
reported
normalisedd
a,WHPVSUHVHQWHGDVDGMXVWHGDUHVWDWHGEHIRUHVSHFLƬFLWHPV6HHSDJHIRUIXUWKHUGHWDLOV
b Before depreciation and amortisation.
c Before purchases of telecommunications licences.
6,000
2,450
4,000
2,000
2,171
2,300
2,782
£m
8,000
2,292
2,326
2,346
2,438
£m
2,480
2013
adjusteda
2014
Proposed full year dividend
<HDUHQGHG0DUFK
0
)UHHFDVKƮRZ
Year ended 31 March
2,120
reported
Capital expenditurec
Year ended 31 March
2,240
4%
5%
2,830
0
reported
2015
1%
0%
15
1,000
2013
2014
25.7
20
26.3
3,172
25
24.8
2,315
2,500
2,645
30
2,827
3,000
2,312
pence
35
2,656
£m
3,500
6,143
11,961
12,171
11,580
reported
2013
2015
5,119
2015
1%
0%
2014
7,028
2014
5,800
5,600
2013
Earnings per share
Year ended 31 March
2,000
6,000
31.5
2015
3URƬWEHIRUHWD[DWLRQ
Year ended 31 March
2,360
6,200
26.5
adjusteda
PC_FRONT.indb 79
12,447
12,312
11,500
28.2
2014
reported
1,500
£m
6,400
11,000
2013
2,000
EBITDA
Year ended 31 March
7,797
17,000
12,196
17,851
17,500
12,000
17,979
18,000
18,287
£m
12,500
18,287
£m
18,500
18,339
Operating costsb
Year ended 31 March
18,103
Revenue
Year ended 31 March
0
2014
2015
2014
2015
5%
7%
28%
16%
2013
2014
2015e
d6HHGHƬQLWLRQRQSDJHDQGVXPPDULVHGFDVKƮRZVWDWHPHQWRQSDJH
e,QFOXGHVWKHLPSDFWRIRXU~EQHTXLW\SODFLQJ6HHSDJH
5/15/2015 1:48:01 AM
80
BT Group plc
Annual Report 2015
Group performance
Our progress against our KPIs
Our progress against our KPIs
Trend in underlying revenue excluding transit
:HKDYHDJDLQGHOLYHUHGRQRXUWKUHHƬQDQFLDO.3,V
ZLWKVWURQJJURZWKLQDGMXVWHG(36DQGFDVKƮRZ
2XU{FXVWRPHUVHUYLFHSHUIRUPDQFHLVXSEXW
ZH{VWLOO{ZDQWWRGREHWWHU
:HXVHIRXUNH\SHUIRUPDQFHLQGLFDWRUV.3,VWRPHDVXUHKRZZHDUH
GRLQJDJDLQVWRXUVWUDWHJ\2XUƬQDQFLDO.3,VPHDVXUHWKHWUHQGLQ
XQGHUO\LQJUHYHQXHH[FOXGLQJWUDQVLWRXUDGMXVWHGHDUQLQJVSHUVKDUH
DQGQRUPDOLVHGIUHHFDVKƮRZ&XVWRPHUVHUYLFHLPSURYHPHQWLVDOVR
DYLWDOQRQƬQDQFLDO.3,IRUXV7KHVH.3,VDUHXVHGWRPHDVXUHWKH
YDULDEOHHOHPHQWVRIRXUVHQLRUH[HFXWLYHVoSD\HDFK\HDUDVVHWRXW
LQ{WKHReport on Directors’ RemunerationVHHSDJH
Our key measure of the
group’s revenue trend,
underlying revenue excluding
transit, was down 0.4%, in
line with the outlook we set at
the start of the year.
:HKDYHRXWOLQHGRXUSHUIRUPDQFHDJDLQVWHDFK.3,KHUHWRJHWKHUZLWK
DQH[SODQDWLRQLQLWDOLFVRIKRZZHGHƬQHHDFKPHDVXUH<RXFDQƬQG
UHFRQFLOLDWLRQVRIWKHƬQDQFLDOPHDVXUHVWRWKHFORVHVW,)56PHDVXUHLQ
WKHAdditional informationVHFWLRQRQSDJHVWR
Adjusted earnings per share
Outlook
Adjusted earnings per share
increased 12% to 31.5p.
2XUJRDOLVWRGHOLYHUVXVWDLQDEOHSURƬWDEOHUHYHQXH
JURZWK:HDLPWRDFKLHYHWKLVWKURXJKPDNLQJVWUDWHJLF
LQYHVWPHQWVDQGGHOLYHULQJRQRXUXQGHUO\LQJEXVLQHVV
$QGZHDUHVWLOOIRFXVLQJRQFRVWWUDQVIRUPDWLRQDFWLYLWLHV
WRGULYHRXWLQHƯFLHQF\LPSURYHRXUSURFHVVHVDQG
UHGXFH{RXUFRVWEDVH
1RUPDOLVHGIUHHFDVKƮRZLVH[SHFWHGWREHDURXQG~EQLQ
7KLVFRPSDUHVZLWK~PLQDQGLVGHVSLWHDQLQFUHDVHRI
DURXQG~PLQRUGLQDU\SHQVLRQFRQWULEXWLRQV
:HDUHWDUJHWLQJD%%%%DDFUHGLWUDWLQJRYHUWKHPHGLXPWHUP
)RUZHFRQWLQXHWRH[SHFWWRJURZRXUGLYLGHQGSHUVKDUHE\
DQGWRXQGHUWDNHDF~PVKDUHEX\EDFNWRKHOSRƪVHW
WKHGLOXWLYHHƪHFWRIPDWXULQJDOOHPSOR\HHVKDUHSODQV
,QWKLVZHLQFOXGHGWKHIROORZLQJVWDWHPHQW
p:HH[SHFWDGMXVWHG(%,7'$RI~ELOOLRQs~ELOOLRQLQ
ZLWKIXUWKHUJURZWKLQq
2XUDFWXDODGMXVWHG(%,7'$IRUZDV~PDWWKH
XSSHUHQGRIWKHUDQJHDQGZHFRQWLQXHWRH[SHFWPRGHVWJURZWKLQ
7KLVLVFRQVLVWHQWZLWKWKHVWDWHPHQWRI
IXUWKHUJURZWK
WKDW{ZHPDGHLQWKHVKDUHKROGHUFLUFXODU
7KHSURƬWHVWLPDWHDQGWKHSURƬWIRUHFDVWGRQRW
WDNHLQWRDFFRXQWDQ\LPSDFWRIWKHSURSRVHGDFTXLVLWLRQRI((7KHEDVLV
RISUHSDUDWLRQDQGDVVXPSWLRQVIRUWKHVHDUHVHWRXWLQWKHAdditional
information on page 222
2015
&KDQJH
1RUPDOLVHGIUHHFDVKƮRZ
We generated normalised free
FDVKƮRZRI~PZKLFK
was higher than our outlook
for the year of more than
£2.6bn and £380m above the
prior year.
3URƬWHVWLPDWHDQGSURƬWIRUHFDVWFRQVLGHUHGZLWKLQWKH
shareholder circular
2Q$SULOZHSXEOLVKHGDVKDUHKROGHUFLUFXODULQUHODWLRQWRRXU
SURSRVHGDFTXLVLWLRQRI((,QWKLVZHSURYLGHGLQIRUPDWLRQUHODWLQJ
WRRXUSURILWHVWLPDWHDQGRXUSURILWIRUHFDVW
7KLV{LQIRUPDWLRQFRQILUPHGRXURXWORRNDVVWDWHGRQ-DQXDU\
ZKHQZHSXEOLVKHGRXUXQDXGLWHGUHVXOWVIRUWKHWKLUGTXDUWHUDQGQLQH
PRQWKVWR'HFHPEHU
Outlook for 2015/16
:HFRQWLQXHWRH[SHFWJURZWKLQXQGHUO\LQJUHYHQXHH[FOXGLQJWUDQVLWLQ
:HH[SHFWPRGHVWJURZWKLQDGMXVWHG(%,7'$7KLVLVGHVSLWH
D\HDURQ\HDULPSDFWRIDURXQG~PGXHWRORZHULQFRPHIURP
ERWKODGGHUSULFLQJDQGWKHVDOHRIUHGXQGDQWFRSSHUDKLJKHUSHQVLRQV
RSHUDWLQJFKDUJHDQGKLJKHUOHDYHUFRVWV:HZLOODOVRLQFXUFRVWV
UHODWLQJWRWKHODXQFKRIRXU8()$&KDPSLRQV/HDJXHDQG8()$(XURSD
/HDJXHFRQWHQWLQWKH\HDU
0.5
2015
p
p
12
m
~m
2015
~
&KDQJH
Customer service improvement
Our customer service
improvement measure, ‘Right
First Time’ was up 4.7%
compared to 1.5% last year.
2015
1.5
6KDUHKROGHUVDSSURYHGWKHWUDQVDFWLRQRQ$SULODQGZHDUH
QRZDZDLWLQJDSSURYDOIURPWKH&RPSHWLWLRQDQG0DUNHWV$XWKRULW\
PC_FRONT.indb 80
5/15/2015 1:48:02 AM
Overview
The Strategic Report
Purpose and strategy
Delivering our strategy
0ur lines of business
%
1.0
2011
2012
2013
(0.4)
(3.1)
0.5
(1.9)
(1.0)
(3.0)
0.0
(0.5)
(1.5)
(2.0)
(2.5)
(3.0)
(3.5)
Governance
Financial statements
Additional information
2014
8QGHUO\LQJUHYHQXHUHƮHFWVWKHRYHUDOOSHUIRUPDQFHRIWKHJURXSWKDW
ZLOOFRQWULEXWHWRORQJWHUPSURƬWDEOHUHYHQXHJURZWK:HH[FOXGHWKH
LPSDFWRIDFTXLVLWLRQVDQGGLVSRVDOVIRUHLJQH[FKDQJHPRYHPHQWVDQG
VSHFLƬFLWHPVIURPWKLVPHDVXUH:HIRFXVRQWKHWUHQGLQXQGHUO\LQJ
UHYHQXHH[FOXGLQJWUDQVLWEHFDXVHWUDQVLWWUDƯFLVORZPDUJLQDQG
DƪHFWHGE\UHGXFWLRQVLQPRELOHWHUPLQDWLRQUDWHVZKLFKDUHRXWVLGH
RXUFRQWURO
2015
Adjusted earnings per share
Year ended 31 March
$GMXVWHGSURƬWDIWHUWD[JUHZWKLV\HDUUHƮHFWLQJWKHLPSDFWRI
RXUFRVWWUDQVIRUPDWLRQDFWLYLWLHVDORZHULQWHUHVWH[SHQVHDQGDORZHU
GHSUHFLDWLRQDQGDPRUWLVDWLRQFKDUJHWRJHWKHUZLWKDUHGXFWLRQLQWKH
HƪHFWLYHWD[UDWHIURPWR
30
$GMXVWHGHDUQLQJVSHUVKDUHJUHZWRS7KHZHLJKWHGDYHUDJH
QXPEHURIVKDUHVLQWKHPDUNHWLQFUHDVHGDVDUHVXOWRIDODUJHDOO
HPSOR\HHVKDUHSODQZKLFKPDWXUHGLQWKHVXPPHUDQGDQHTXLW\SODFLQJ
WRVXSSRUWRXUSODQQHGDFTXLVLWLRQRI((
15
28.2
26.3
23.4
20.7
20
31.5
pence
35
25
$GMXVWHGHDUQLQJVSHUVKDUHLVWKHDGMXVWHGSURƬWDIWHUWD[DWWULEXWDEOH
WRRXUVKDUHKROGHUVGLYLGHGE\WKHZHLJKWHGDYHUDJHQXPEHURIVKDUHV
LQLVVXH%HLQJDQnDGMXVWHGoPHDVXUHLWH[FOXGHVWKHLPSDFWRIVSHFLƬF
LWHPVDQGDVVXFKLWLVDFRQVLVWHQWZD\WRPHDVXUHWKHSHUIRUPDQFHRI
RXUEXVLQHVVRYHUWLPH
10
5
0
2011
2012
2013
2014
2015
1RUPDOLVHGIUHHFDVKƮRZ
Year ended 31 March
2,830
£m
2,900
2,700
2011
2012
2013
2,450
2,300
1,900
2,307
2,100
2,076
2,500
2,300
2014
2015
Customer service improvement
At 31 March
4.7
18.7
(4.0)
3.0
3.0
10.5
10
1.5
%
20
15
5
0
2010
2011
2012
81
%7&RQVXPHUUHYHQXHZDVXSZLWKVWURQJJURZWKLQWKHEURDGEDQG
DQG79FXVWRPHUEDVHVKHOSHGE\%76SRUW7KLVJURZWKZDVRƪVHWE\
GHFOLQHVLQRXURWKHUOLQHVRIEXVLQHVVPDLQO\UHƮHFWLQJUHJXODWRU\SULFH
FKDQJHVDQGORZHU8.SXEOLFVHFWRUUHYHQXHV:HH[SODLQPRUHDERXWWKH
SHUIRUPDQFHRIRXUOLQHVRIEXVLQHVVIURPSDJH
Trend in underlying revenue excluding transit
Year ended 31 March
0.5
Group performance
2013
2014
2015
2015a
7KHLQFUHDVHLQRXUQRUPDOLVHGIUHHFDVKƮRZUHƮHFWVIDYRXUDEOHZRUNLQJ
FDSLWDOPRYHPHQWVLQFOXGLQJWKHWLPLQJRI%76SRUWSURJUDPPHULJKWV
SD\PHQWVLQWKHSULRU\HDUJURZWKLQ(%,7'$ORZHURUGLQDU\SHQVLRQ
FRQWULEXWLRQVDQGORZHUWD[DQGLQWHUHVWSD\PHQWV7KHVHZHUHSDUWO\
RƪVHWE\KLJKHUQHWFDVKFDSLWDOH[SHQGLWXUHGXHWRWKHWLPLQJRIJUDQW
IXQGLQJFDVKUHFHLSWV
)UHHFDVKƮRZLVWKHFDVKZHJHQHUDWHIURPRXURSHUDWLRQVOHVVFDSLWDO
H[SHQGLWXUHDQGƬQDQFHFRVWV,WUHSUHVHQWVWKHFDVKDYDLODEOHWRLQYHVWLQ
WKHEXVLQHVVUHSD\GHEWVXSSRUWWKHSHQVLRQVFKHPHDQGSD\GLYLGHQGV
WRRXUVKDUHKROGHUV
1RUPDOLVHGIUHHFDVKƮRZH[FOXGHVVLJQLƬFDQWQRQRSHUDWLRQDO
SD\PHQWVDQGUHFHLSWVWKDWZRXOGGLVWRUWWKHPHDVXUH\HDURQ\HDU
6RLQFDOFXODWLQJQRUPDOLVHGIUHHFDVKƮRZZHWDNHRXWWKHLPSDFWRI
VSHFLƬFLWHPVSXUFKDVHVRIWHOHFRPPXQLFDWLRQVOLFHQFHVSHQVLRQGHƬFLW
SD\PHQWVDQGWKHWD[EHQHƬWIURPSHQVLRQGHƬFLWSD\PHQWV
:HKDYHLPSURYHGRXUFXVWRPHUVHUYLFHWKLV\HDUEXWZHDUHQRWVDWLVƬHG
DQGVWLOOZDQWWRGREHWWHU$OORIRXUOLQHVRIEXVLQHVVFRQWULEXWHGWR
WKLVLPSURYHPHQW:HGHOLYHUHGVLJQLƬFDQWO\EHWWHUUHSDLUSHUIRUPDQFH
DQGVKRUWHUOHDGWLPHVIRUSURYLGLQJ8.OLQHVDQGEURDGEDQG%7*OREDO
6HUYLFHVPDGHODUJHJDLQVLQGHOLYHULQJPRUHRILWVSURGXFWVZLWKLQWDUJHW
WLPHV/RRNLQJIRUZDUGZHQHHGWRLPSURYHRXUSURYLVLRQRI(WKHUQHW
VHUYLFHVDQGUHFRYHUPRUHTXLFNO\ZKHQZHGRIDLOWRPHHWRXUSURPLVHV
n5LJKW)LUVW7LPHoLVRXUNH\PHDVXUHRIFXVWRPHUVHUYLFH7KLVWUDFNV
KRZRIWHQZHNHHSWKHSURPLVHVZHPDNHWRRXUFXVWRPHUV7KLVFRXOG
EHDERXWNHHSLQJWRDSSRLQWPHQWWLPHVƬ[LQJIDXOWVZLWKLQDQDJUHHG
SHULRGRUDQVZHULQJFDOOVSURPSWO\DQGGHDOLQJZLWKTXHULHVRURUGHUV
HƯFLHQWO\$VZHOODVLPSURYLQJVHUYLFHDQGWKHFXVWRPHUH[SHULHQFH
NHHSLQJRXUSURPLVHVVKRXOGPHDQWKDWWKHUHLVOHVVZRUNWRGRLQ
FRUUHFWLQJRXUPLVWDNHVDQGVRUHGXFHVRXUFRVWV
a Cumulative improvement from 1 April 2009.
PC_FRONT.indb 81
5/15/2015 1:48:02 AM
BT Group plc
Annual Report 2015
Income statement
EBITDA
$GMXVWHG(%,7'$LQFUHDVHGWR~PƮDWDWWKH
XSSHUHQGRIRXURXWORRNRI~EQs~EQ
6,116
6,143
Depreciation and amortisation
2SHUDWLQJSURƬW
3,733
3,421
3,300
3,172
2,827
2,656
2,541
2,214
2,059
1HWƬQDQFHH[SHQVH
$VVRFLDWHVDQGMRLQWYHQWXUHV
3URƬWEHIRUHWD[DWLRQ
7D[DWLRQ
3URƬWIRUWKH\HDU
a([FOXGLQJGHSUHFLDWLRQDQGDPRUWLVDWLRQ
Revenue
2XUNH\UHYHQXHPHDVXUHXQGHUO\LQJUHYHQXHH[FOXGLQJWUDQVLW
ZDV{GRZQZKLFKLVLQOLQHZLWKRXURXWORRNIRUWKH\HDURI
EHLQJ{EURDGO\ƮDW
:HKDYHGLVFORVHGDGMXVWHG(%,7'$IRUHDFKRIRXUFXVWRPHUIDFLQJ
OLQHVRIEXVLQHVVLQQRWHWRWKHFRQVROLGDWHGƬQDQFLDOVWDWHPHQWV
Operating costs
:HUHGXFHGRSHUDWLQJFRVWVEHIRUHGHSUHFLDWLRQDQGDPRUWLVDWLRQE\
2XUWRWDORSHUDWLQJFRVWVEHIRUHGHSUHFLDWLRQDQGDPRUWLVDWLRQZHUH
GRZQ~PƮDWDW~P2XUDELOLW\WRUHGXFH
FRVWVZKLOHLQYHVWLQJUHƮHFWVRXUIRFXVRQFRVWFRQWURO8QGHUO\LQJ
RSHUDWLQJFRVWVEHIRUHGHSUHFLDWLRQDQGDPRUWLVDWLRQDQGH[FOXGLQJ
WUDQVLWGHFUHDVHG,QDJJUHJDWHZHKDYHUHGXFHGRSHUDWLQJFRVWV
DQGFDSLWDOH[SHQGLWXUHE\DURXQG~EQRYHUWKHODVWVL[\HDUVGHVSLWH
VLJQLƬFDQWLQYHVWPHQWDFURVVWKHEXVLQHVV
2SHUDWLQJFRVWVEHIRUHGHSUHFLDWLRQDPRUWLVDWLRQDQGVSHFLƬFLWHPV
Year ended 31 March
£m
12,500
5HSRUWHGUHYHQXHZKLFKLQFOXGHVVSHFLƬFLWHPVZDVGRZQ
$GMXVWHGUHYHQXHZDVDOVRGRZQDW~P
8QGHUO\LQJUHYHQXHH[FOXGLQJWUDQVLWZDVGRZQFRPSDUHGZLWKD
LQFUHDVHLQWKHSULRU\HDU:HKDGD~PQHJDWLYHLPSDFWIURP
IRUHLJQH[FKDQJHPRYHPHQWVD~PUHGXFWLRQLQWUDQVLWUHYHQXH
DQGDQ~PQHJDWLYHLPSDFWIURPGLVSRVDOV
*URZWKLQ%7&RQVXPHUZDVRƪVHWE\GHFOLQHVLQRXURWKHUOLQHVRI
EXVLQHVV%7&RQVXPHUUHYHQXHZDVXSZLWKVWURQJJURZWKLQ
WKHEURDGEDQGDQG79FXVWRPHUEDVHV:HDUHYHU\SOHDVHGZLWK
WKHSHUIRUPDQFHRI%76SRUWZKLFKKDVFRQWULEXWHGWRERWKWRSDQG
ERWWRPOLQHJURZWK2SHQUHDFKUHYHQXHZDVGRZQGULYHQE\
UHJXODWRU\SULFHFKDQJHVZKLFKZHUHSDUWO\RƪVHWE\WKHEHQHƬWRI
ƬEUHEURDGEDQGJURZWK%7%XVLQHVVXQGHUO\LQJUHYHQXHH[FOXGLQJ
WUDQVLWGHFOLQHGPDUJLQDOO\ZLWKORZHUFDOODQGOLQHYROXPHVUHƮHFWLQJ
WKHPLJUDWLRQRIFXVWRPHUVWREURDGEDQGDQG,3VHUYLFHV%7:KROHVDOH
XQGHUO\LQJUHYHQXHH[FOXGLQJWUDQVLWZDVGRZQ7KHLPSDFWRI
UHJXODWRU\SULFHFKDQJHVDQGDODUJHFRQWUDFWWHUPLQDWLRQZHUHSDUWO\
RƪVHWE\WKHUHFRJQLWLRQRIODGGHUSULFLQJUHYHQXH,Q%7*OREDO6HUYLFHV
8.SXEOLFVHFWRUUHYHQXHZDVORZHUZLWKWKLVSDUWO\RƪVHWE\RXU
KLJKJURZWKUHJLRQV
11,750
11,580
6,271
11,000
2015
EBITDA
7KURXJKWKHJURXSZLGHUHVWUXFWXULQJSURJUDPPHWKDWZHFRPSOHWHG
WKLV\HDUZHKDYHPDGHLQYHVWPHQWVWRUHGXFHFRVWVLQWKHORQJHUWHUP
7KHLQFUHPHQWDOFRVWVDVVRFLDWHGZLWKWKLVUHVWUXFWXULQJKDYHEHHQ
WUHDWHGDVVSHFLƬFLWHPV
31
Other
Operating costsa
127
18,339
Programme
rights charges
18,287
307
17,851
Net labour costs
Revenue
7KLVVKRZVKRZRXUFRVWWUDQVIRUPDWLRQDFWLYLWLHVDUHEHQHƬWLQJRXU
ERWWRPOLQH:HKDYHUHGXFHGFRVWVDQGKDYHVWLOOEHHQDEOHWRLQYHVW
ZKLOHLQFUHDVLQJRXUSURƬWDELOLW\
201
~P
FX, acquisitions
and disposals
~P
241
2015
~P
Transit & POLOs
<HDUHQGHG0DUFK
%HIRUHVSHFLƬFLWHPV
12,171
Summarised income statement
2014
82
<RXFDQVHHDIXOOEUHDNGRZQRIUHSRUWHGUHYHQXHE\PDMRUSURGXFWDQG
VHUYLFHFDWHJRU\LQQRWHWRWKHFRQVROLGDWHGƬQDQFLDOVWDWHPHQWV
PC_FRONT.indb 82
5/15/2015 1:48:02 AM
Overview
The Strategic Report
Purpose and strategy
Delivering our strategy
0ur lines of business
3D\PHQWVWRWHOHFRPPXQLFDWLRQVRSHUDWRUV32/2VZHUHGRZQ
SULPDULO\UHƮHFWLQJORZHUWUDQVLWYROXPHVa QHJDWLYHIRUHLJQH[FKDQJH
PRYHPHQWDQGORZHUFDOOYROXPHVLQ%7&RQVXPHU1HWODERXUFRVWVZHUH
GRZQDVZHLQFUHDVHGSURGXFWLYLW\ZKLOHUHDOORFDWLQJRXUODERXU
UHVRXUFHWREHPRUHHƯFLHQW7RWDOODERXUFRVWVLQFOXGLQJFDSLWDOLVHG
ODERXUZHUHGRZQE\OHVVDWDVDUHVXOWRIXVLQJPRUHLQGLUHFWODERXU
LQFDSLWDOSURMHFWVSULPDULO\LQ2SHQUHDFKGXHWRWKH%'8.SURJUDPPH
%76SRUWSURJUDPPHULJKWVFKDUJHVZHUH~P~P
XSUHƮHFWLQJDIXOOPRQWKVRIVSRUWVULJKWVFKDUJHV3URSHUW\
DQGHQHUJ\FRVWVZHUHKLJKHUZKLOHRWKHURSHUDWLQJFRVWVZHUHGRZQ
2WKHURSHUDWLQJFRVWVLQFOXGHVDOHVRIUHGXQGDQWFRSSHUZKLFK
JHQHUDWHGQHWLQFRPHRI~PDQGZHH[SHFWQREHQHƬWIURPWKLV
LQ{
Governance
Financial statements
Additional information
83
1HWLQWHUHVWRQSHQVLRQVRI~P~PZDVFKDUJHGDVD
VSHFLƬFLWHP7KHLQFUHDVHPDLQO\UHƮHFWVWKHKLJKHUGHƬFLWDW0DUFK
RI~EQFRPSDUHGWRWKHGHƬFLWRI~EQDW0DUFK
6SHFLƬFLWHPVDOVRLQFOXGHDWD[FUHGLWRI~P~P
UHƮHFWLQJWKHWD[RQVSHFLƬFLWHPVFKDUJHGZLWKLQSURƬWEHIRUHWD[
7KH{SULRU\HDULQFOXGHGDWD[FUHGLWRI~PRQWKHUHPHDVXUHPHQW
RI{GHIHUUHGWD[EDODQFHVIURPDUDWHRIWR7KHUHLVQRFUHGLW
WKLV\HDUDVWKHUDWHRIWD[IRULVXQFKDQJHGDW
<RXFDQVHHGHWDLOVRIDOOVSHFLƬFLWHPVFKDUJHGWRWKHLQFRPHVWDWHPHQW
LQWKHODVWWKUHH\HDUVLQQRWHWRWKHFRQVROLGDWHGƬQDQFLDOVWDWHPHQWV
3URƬWEHIRUHWD[
$GMXVWHGSURƬWEHIRUHWD[ZDVXSDW~P
2014/15 operating costsa
29%
Other
Group performance
36%
Net labour costs
7KHLQFUHDVHLQDGMXVWHGSURƬWEHIRUHWD[UHƮHFWVRXU(%,7'$
SHUIRUPDQFHDQGRXUIRFXVLQUHFHQW\HDUVRQFDSLWDOH[SHQGLWXUH
HƯFLHQFLHVDQGGHEWUHGXFWLRQZKLFKKDVUHVXOWHGLQORZHUGHSUHFLDWLRQ
DQGDPRUWLVDWLRQDQGDORZHUQHWƬQDQFHH[SHQVH
5HSRUWHGSURƬWEHIRUHWD[ZKLFKLQFOXGHVVSHFLƬFLWHPVZDVXS
WR{~P
:HGLVFXVVGHSUHFLDWLRQQHWƬQDQFHH[SHQVHDQGWD[LQODWHUVHFWLRQV
RI{WKLVSHUIRUPDQFHUHYLHZ
3%
Programme
rights charges
Earnings per share
$GMXVWHGHDUQLQJVSHUVKDUHLQFUHDVHGWRS
5HJXODWRU\MXGJPHQWVRQ(WKHUQHWSURGXFWSULFLQJLQSULRU\HDUVDQGDQ
DVVHVVPHQWRIFHUWDLQRWKHUKLVWRULFDOUHJXODWRU\PDWWHUVOHGWRDFKDUJH
RI~PLQWKH\HDU
:HKDGDSURSHUW\UDWLRQDOLVDWLRQQHWEHQHƬWRI~PEHLQJDSURƬWRI
~PRQWKHGLVSRVDORIDVXUSOXVEXLOGLQJLQ/RQGRQ.H\EULGJH+RXVH
SDUWO\RƪVHWE\D~PLQFUHDVHLQRQHURXVOHDVHSURYLVLRQV:HLQFXUUHG
FRVWVRI~PUHODWLQJWRWKHSURSRVHGDFTXLVLWLRQRI((2IWKHVH
~PKDYHEHHQUHFRJQLVHGLQRSHUDWLQJFRVWV~PZHUHGLUHFWO\
UHODWHGWRWKHVKDUHSODFLQJZHPDGHLQ)HEUXDU\DQGVRKDYH
EHHQ{UHFRJQLVHGLQHTXLW\DQG~PUHODWHWRƬQDQFLQJFRVWV
0.4
1.1
Interest
Other
31.5
2.0
2.0
28.2
2015
EBITDA
23
2014
25
Depreciation &
amortisation
6SHFLƬFLWHPVFKDUJHGDJDLQVWRSHUDWLQJFRVWVLQFOXGH~P
~PUHODWLQJWRWKHJURXSZLGHUHVWUXFWXULQJ
SURJUDPPHWKDWVWDUWHGLQ7KHVHFRVWVSULPDULO\UHODWHWR
OHDYHUVDQGSURSHUW\DQGQHWZRUNUDWLRQDOLVDWLRQ
27
0.5
:HUHFRJQLVHGUHYHQXHDQG(%,7'$RI~PEHLQJWKHSULRU\HDU
LPSDFWVRIODGGHUSULFLQJDJUHHPHQWVZLWKWKH8.PRELOHRSHUDWRUV
IROORZLQJWKH6XSUHPH&RXUWMXGJPHQWLQ-XO\
29
Other
6SHFLƬFLWHPVUHVXOWHGLQDQHWFKDUJHDIWHUWD[RI~P
~P
31
0.8
$VZHKDYHVDLGRQSDJHRXUFRPPHQWDU\LQWKLVSHUIRUPDQFHUHYLHZ
IRFXVHVRQWKHUHVXOWVEHIRUHVSHFLƬFLWHPVDVWKLVLVKRZPDQDJHPHQW
PHDVXUHVWKHRQJRLQJSHUIRUPDQFHRIWKHEXVLQHVV
33
Interest
6SHFLƬFLWHPV
Adjusted earnings per share
Year ended 31 March
1.9
<RXFDQVHHDGHWDLOHGEUHDNGRZQRIRXURSHUDWLQJFRVWVLQQRWHWRWKH
FRQVROLGDWHGƬQDQFLDOVWDWHPHQWV
Depreciation &
amortisation
a ([FOXGLQJGHSUHFLDWLRQDPRUWLVDWRQDQGVSHFLƬFLWHPV
$GMXVWHGHDUQLQJVSHUVKDUHLVRQHRIRXUNH\SHUIRUPDQFHLQGLFDWRUV
VHH{SDJHVDQGDQGKDVLQFUHDVHGRYHUWKHODVWWZR\HDUV
7KHJUDSKEHORZVKRZVWKHGULYHUVRIWKHULVHLQDGMXVWHGHDUQLQJVSHU
VKDUHRYHUWKLVSHULRG
0.3
19%
POLOs
EBITDA
8%
Property & energy
26.3
Network & IT
2013
5%
5HSRUWHGHDUQLQJVSHUVKDUHZKLFKLQFOXGHVVSHFLƬFLWHPVZDVS
XS
2XUHDUQLQJVSHUVKDUHLQIXWXUH\HDUVZLOOEHLPSDFWHGE\VKDUHRSWLRQV
PDWXULQJDQGVKDUHDZDUGVYHVWLQJXQGHURXUHPSOR\HHVKDUHSODQV
,W{ZLOODOVREHDƪHFWHGE\WKHDGGLWLRQDOVKDUHVZHLQWHQGWRLVVXHDV
SDUW{RIWKHSODQQHGDFTXLVLWLRQRI((6HHSDJHIRUPRUHGHWDLOV
Find out more
Our cost transformation
focus on page
23
PC_FRONT.indb 83
Fi d
5/15/2015 1:48:02 AM
84
BT Group plc
Annual Report 2015
Dividends
7KH%RDUGLVSURSRVLQJDƬQDOGLYLGHQGWRVKDUHKROGHUVRISXS
7KLVEULQJVWKHIXOO\HDUGLYLGHQGWRSXSDQGFRPSDUHVZLWK
DQLQFUHDVHLQWKHIXOO\HDUGLYLGHQGRI
7KLV\HDUoVGLYLGHQGLVDWWKHXSSHUHQGRIRXURXWORRNUDQJHUHƮHFWLQJ
RXUVWURQJƬQDQFLDOSHUIRUPDQFHWKLV\HDU,WZLOOEHSDLGVXEMHFWWR
VKDUHKROGHUDSSURYDORQ6HSWHPEHUWRVKDUHKROGHUVRQWKH
UHJLVWHURQ$XJXVW
Dividends per share
Year ended 31 March
15%
6.5 9.5
10.0
8.0
7.5 10.9
12.0
14%
8.5 12.4
pence
14.0
3.9
3.0
3.4
4.0
0.0
:HJHQHUDWHGQRUPDOLVHGIUHHFDVKƮRZRI~PXS~PRU
DQGKLJKHUWKDQRXURXWORRNRIDERYH~EQ
)UHHFDVKƮRZ
7KHLQFUHDVHLQQRUPDOLVHGIUHHFDVKƮRZUHƮHFWVIDYRXUDEOHZRUNLQJ
FDSLWDOPRYHPHQWVLQFOXGLQJWKHWLPLQJRI%76SRUWSURJUDPPHULJKWV
SD\PHQWVLQWKHSULRU\HDUJURZWKLQ(%,7'$ORZHURUGLQDU\SHQVLRQ
FRQWULEXWLRQVDQGORZHUWD[DQGLQWHUHVWSD\PHQWV7KHVHZHUHSDUWO\
RƪVHWE\KLJKHUQHWFDVKFDSLWDOH[SHQGLWXUHGXHWRWKHWLPLQJRIJUDQW
IXQGLQJFDVKUHFHLSWV%7&RQVXPHUGHOLYHUHGDSDUWLFXODUO\VWURQJFDVK
ƮRZSHUIRUPDQFHWKLV\HDU
:HVHFXUHG)$3UHPLHU/HDJXHIRRWEDOOULJKWVIRUDIXUWKHUWKUHH\HDUV
DQGZHSDLGDGHSRVLWRI~P:HDOVRSDLGDIXUWKHU~PIRURXU
H[LVWLQJ)$3UHPLHU/HDJXHIRRWEDOOEURDGFDVWULJKWV
6XPPDULVHGFDVKƮRZVWDWHPHQW
<HDUHQGHG0DUFK
%HIRUHVSHFLƬFLWHPV
6.0
2.0
&DVKƮRZ
2015
~P
~P
~P
(%,7'$
&DSLWDOH[SHQGLWXUHa
7D[DWLRQ
:RUNLQJFDSLWDOPRYHPHQWV
2WKHUQRQFDVKDQGQRQFXUUHQW
OLDELOLWLHVPRYHPHQWV
2,830
2,450
2,300
s
s
&DVKWD[EHQHƬWRISHQVLRQGHƬFLW
payments
6SHFLƬFLWHPV
2,782
2,171
2,292
Interest
b
2013
Interim
2014
2015
Final
2XUSROLF\LVWRSD\DSURJUHVVLYHGLYLGHQG
:HKDYHVHWRXWRXUGLYLGHQGH[SHFWDWLRQVIRULQRXU2XWORRN
RQSDJH
1RUPDOLVHGIUHHFDVKƮRZ
3XUFKDVHVRIWHOHFRPPXQLFDWLRQV
licences
5HSRUWHGIUHHFDVKƮRZ
3HQVLRQGHƬFLWSD\PHQWV
'LYLGHQGV
10
222
'LVSRVDOVDQGDFTXLVLWLRQV
6KDUHEX\EDFNSURJUDPPH
3URFHHGVIURPLVVXHRIRZQVKDUHV
Reduction in net debt from
FDVKƮRZV
1HWGHEWDW$SULO
Reduction in net debt from
FDVKƮRZV
1RQFDVKPRYHPHQWV
1HWGHEWDW0DUFK
(5,119)
(7,028)
(7,797)
a([FOXGLQJSXUFKDVHVRIWHOHFRPPXQLFDWLRQVOLFHQFHVDQGQHWRIJRYHUQPHQWJUDQWV
b ([FOXGLQJFDVKWD[EHQHƬWRISHQVLRQGHƬFLWSD\PHQWV
7KHQHWFDVKFRVWRIVSHFLƬFLWHPVZDV~P~P
PDLQO\FRPSULVLQJUHVWUXFWXULQJFRVWVRI~P~P
ODGGHUSULFLQJUHFHLSWVRI~P~QLODQGDQHWSURSHUW\
UDWLRQDOLVDWLRQEHQHƬWRI~PFRVWRI~P
/DVW\HDUWKHFDVKFRVWRIVSHFLƬFLWHPVLQFOXGHGSD\PHQWVRI~P
UHODWLQJWRWKHDFTXLVLWLRQRI(631oV8.DQG,UHODQG79FKDQQHOVEXVLQHVV
DQG~PUHODWLQJWRFODLPVDJDLQVWZKLFKZHKDYHSURYLVLRQV
PC_FRONT.indb 84
5/15/2015 1:48:02 AM
The Strategic Report
Purpose and strategy
Overview
Delivering our strategy
0ur lines of business
Group performance
Governance
Financial statements
Additional information
85
GHƬFLWDQGVKDUHEX\EDFN7KLV\HDUZHKDYHDOVRWDNHQLQWRDFFRXQW
WKH{IXQGLQJUHTXLUHPHQWVIRUWKHSODQQHGDFTXLVLWLRQRI((
5HSRUWHGIUHHFDVKƮRZZKLFKLQFOXGHVVSHFLƬFLWHPVDQGD~P
~PWD[EHQHƬWIURPSHQVLRQGHƬFLWSD\PHQWV
ZDV{~P~P
:HVSHQW~P~PRQRXUVKDUHEX\EDFNSURJUDPPH
WRKHOSFRXQWHUDFWWKHGLOXWLYHHƪHFWRIRXUDOOHPSOR\HHVKDUHRSWLRQ
SODQVPDWXULQJ([HUFLVHVRIVKDUHRSWLRQVJHQHUDWHGSURFHHGVRI
~P~P
<RXFDQVHHDUHFRQFLOLDWLRQIURPWKHQHWFDVKLQƮRZIURPRSHUDWLQJ
DFWLYLWLHVWKHPRVWGLUHFWO\FRPSDUDEOH,)56PHDVXUHWRQRUPDOLVHG
IUHHFDVKƮRZRQSDJH
*URVVGHEWWUDQVODWHGDWVZDSUDWHVDW0DUFKZDV~P
7KLVFRPSULVHGWHUPGHEWRI~PƬQDQFHOHDVHVRI~PDQG
RWKHUORDQVRI~P
:HLVVXHG~PRIWHUPGHEWLQWKHFDSLWDOPDUNHWV7KHHƪHFWLYH
6WHUOLQJLQWHUHVWUDWHRQWKLVƬYH\HDUERQGZDV7KLVLVVXDQFH
ZDVSDUWO\WRUHƬQDQFHPDWXULQJGHEWDQGDOVRWRPDNHVXUHZHKDYH
OLTXLGLW\WRUHƬQDQFHWHUPGHEWRI~PPDWXULQJLQHDUO\
,Q-XQHDQG-XO\RXUbPDQGbPERQGVPDWXUHGUHVXOWLQJ
LQDFDVKRXWƮRZRI~P
1HWGHEW
:HKDYHUHGXFHGQHWGHEWWR~PGRZQ~PUHƮHFWLQJ
~EQUDLVHGIURPWKHHTXLW\SODFLQJVXSSRUWLQJRXUSODQQHG
DFTXLVLWLRQRI((DVZHOODVWKHVWURQJFDVKJHQHUDWLRQRIWKHEXVLQHVV
:HKDYHLQFUHDVHGWKHOHYHORIRXULQYHVWPHQWVKHOGLQOLTXLGLW\IXQGV
DQGWHUPGHSRVLWVE\~PUHƮHFWLQJWKHFDVKJHQHUDWLRQRIWKH
EXVLQHVVWKHLVVXDQFHRIWHUPGHEWDQGWKH~EQUDLVHGIURPWKH
HTXLW\SODFHPHQW
:HKDYHDFKLHYHGWKLVZKLOHPDNLQJLQYHVWPHQWVIRUWKHIXWXUH
RIRXUEXVLQHVVLQFOXGLQJLQUHVHDUFKDQGGHYHORSPHQW and sports
FRQWHQWVXSSRUWLQJRXUSHQVLRQIXQGDQGfunding RXUVKDUH
EX\EDFNSURJUDPPH$QG{ZHKDYHSDLGSURJUHVVLYHGLYLGHQGVWRRXU
VKDUHKROGHUV
7KHLPSDFWRIIRUHLJQH[FKDQJHRQQHWGHEWLQFOXGHVWKHLPSDFWRI
WUDQVODWLRQRQƬQDQFHOHDVHVVKRUWWHUPERUURZLQJVLQYHVWPHQWV
DQGFDVKEDODQFHV It also includes tKHEHQHƬWRIWUDQVOating our debt
balanFHVWR6WHUOLQJDWVZDSUDWHV
:HFRQWLQXHWRWDUJHWD%%%%DDFUHGLWUDWLQJRYHUWKHPHGLXPWHUP
:HUHJXODUO\UHYLHZWKHOLTXLGLW\RIWKHJURXSDQGRXUIXQGLQJVWUDWHJ\
WDNHVDFFRXQWRIPHGLXPWHUPUHTXLUHPHQWVLQFOXGLQJWKHSHQVLRQ
7KHDGMXVWPHQWWRQHWGHEWWRUHPRYHWKHLPSDFWRIIDLUYDOXHKHGJH
DFFRXQWLQJLQFUHDVHGE\~P7KHDGMXVWPHQWIRUWKHXVHRIWKH
HƪHFWLYHLQWHUHVWPHWKRGGHFUHDVHGE\~P7KHVHZHUHSULQFLSDOO\
GXHWRKLJKHU6WHUOLQJLQWHUHVWUDWHV
7KHWDEOHEHORZVKRZVWKHNH\FRPSRQHQWVRIRXUQHWGHEWDQGRIWKHUHGXFWLRQWKLV\HDURI~P
~P
At
0DUFK
2015
2WKHU
Transfer to
2WKHU )DLUYDOXH
PRYH
Foreign ZLWKLQRQH
FDVK
year
ments H[FKDQJH
ƮRZ
At Term debt
1 April LVVXDQFH
PDWXULWLHV
'HEWGXHZLWKLQRQH\HDUa
s
Debt due after one year
s
11
s
s
s
s
s
s
s
s
s
s
10
9,074
,PSDFWRIFURVVFXUUHQF\VZDSVb
5HPRYDORIDFFUXHGLQWHUHVWDQGIDLUYDOXHDGMXVWPHQWVc
Gross debt
9,496
(339)
(39)
s
(54)
/HVV
&DVKHTXLYDOHQWV
&XUUHQWDVVHWVLQYHVWPHQWV
s
s
s
s
s
s
s
5HPRYDORIDFFUXHGLQWHUHVWc
1
1HWGHEW
s
7,028
(339)
s
s
(1,534)
s
s
(46)
s
1
2
s
10
5,119
a Including accrued interest and bank overdrafts.
b Retranslation of debt balances at swap rates where hedged by cross-currency swaps.
c5HPRYDORIDFFUXHGLQWHUHVWDSSOLHGWRUHƮHFWWKHHƪHFWLYHLQWHUHVWUDWHPHWKRGDQGUHPRYDORIIDLUYDOXHDGMXVWPHQWV
Share buyback
Non-cash movement
36
At 31 March 2015
5,119
876
320
Dividends
924
6SHFLƬFLWHPV
154
3HQVLRQGHƬFLW
payments
Disposal and
acquisitions
10
&DVKWD[EHQHƬWRI
SHQVLRQGHƬFLW
Normalised free
FDVKƮRZ
Non-cash movement
50
2,830
Share buyback
302
Dividends
At 31 March 2014
325
356
778
Disposal and
acquisitions
22
3HQVLRQGHƬFLW
payments
Proceeds from
LVVXHRIRZQVKDUHV
75
6SHFLƬFLWHPV
&DVKWD[EHQHƬWRI
SHQVLRQGHƬFLW
Proceeds from
LVVXHRIRZQVKDUHV
1,201
3,500
106
4,500
77
5,500
Normalised free
FDVKƮRZ
6,500
2,450
7,500
At 1 April 2013
£m
8,500
7,797
Movements in net debt
7,028
2YHUWKHODVWWZR\HDUVZHKDYHUHGXFHGQHWGHEWE\~EQDVVKRZQLQWKHJUDSKEHORZ
2,500
PC_FRONT.indb 85
5/15/2015 1:48:03 AM
86
BT Group plc
Annual Report 2015
7KHPDWXULW\SURƬOHRIRXUWHUPGHEWDQGWKHDSSOLFDEOHDYHUDJHFRXSRQUDWHLVVKRZQLQWKHJUDSKEHORZ
0DWXULW\SURƬOHRIJURVVGHEWH[FOXGLQJOHDVLQJDQGDYHUDJHFRXSRQUDWH
At 31 March
£m
1,800
9.5%
4.3%
2.8%
300
6.0%
2.7%
600
6.4%
6.9%
900
5.2%
1,200
5.5%
1,500
£ debt
$ swapped to £
2038
2037
2036
2035
2034
2033
2032
2031
2030
2029
2028
2027
2026
2025
2024
2023
2022
2021
2020
2019
2018
2017
2016
0
€ swapped to £
Financing and debt maturity
1HWƬQDQFHH[SHQVH
7RJHWKHUZLWKRXUFRPPLWWHGEDQNIDFLOLWLHVRI~EQWKHVHDUH
H[SHFWHGWRUHPDLQRXUOLTXLGLW\VRXUFHVIRUWKHIRUHVHHDEOHIXWXUH
2XU{FRPPLWWHGEDQNIDFLOLWLHVDUHDYDLODEOHXQWLO6HSWHPEHU
ZLWKWKHRSWLRQWRH[WHQGWKHƬYH\HDUWHUPDWWKHHQGRIWKHƬUVWDQG
VHFRQG\HDUV,IDJUHHGWKLVSURYLGHVDVHYHQ\HDUWHUPPDWXULQJLQ
6HSWHPEHU{
:HKDYHVKRZQEHORZDQRYHUYLHZRIRXUDYHUDJHJURVVGHEW
LQYHVWPHQWVDQGFDVKEDODQFHVDQGQHWGHEWDQGWKHUHODWHGZHLJKWHG
DYHUDJHLQWHUHVWUDWHVRYHUWKHSDVWWKUHH\HDUV
7KHPDMRUVRXUFHRIRXUFDVKLQƮRZLQUHFHQW\HDUVKDVEHHQWKHFDVK
JHQHUDWHGIURPRXURSHUDWLRQV
,Q)HEUXDU\ZHVLJQHGDQHZ~EQIDFLOLW\DJUHHPHQWLQ
UHODWLRQWRƬQDQFLQJWKHSURSRVHGDFTXLVLWLRQRI((7KLVIDFLOLW\ZLOO
EHDYDLODEOHXQWLOWKHHDUOLHURI$XJXVWDQGWKHcompletion
RI{WKH{DFTXLVLWLRQ
1RQHRIWKHVHIDFLOLWLHVKDGEHHQGUDZQGRZQDW0DUFK
:HUDLVHGWHUPGHEWLQWKHFDSLWDOPDUNHWVWRUHƬQDQFHPDWXULQJGHEW
'HEWGXHZLWKLQRQH\HDUDWKHGJHGUDWHVLV~P
$GMXVWHGQHWƬQDQFHH[SHQVHRI~PGHFUHDVHGE\~PDVZHKDYH
UHGXFHGRXUQHWGHEW
7KLVVKRZVDQLQFUHDVHLQWKHZHLJKWHGDYHUDJHLQWHUHVWUDWHRQQHW
GHEWWR7KLVLVGXHWRWKHHƪHFWRIFDUU\LQJKLJKHULQYHVWPHQW
EDODQFHVLQDGYDQFHRIGHEWPDWXULWLHVDQGSHQVLRQIXQGLQJLQ
7KH{ZHLJKWHGDYHUDJHLQWHUHVWUDWHRQJURVVGHEWZDVEURDGO\XQFKDQJHG
DW
<RXFDQVHHDUHFRQFLOLDWLRQRIQHWƬQDQFHH[SHQVHWRQHWLQWHUHVWFDVK
RXWƮRZLQQRWHWRWKHFRQVROLGDWHGƬQDQFLDOVWDWHPHQWV
<HDUHQGHG0DUFK
2015
~P
~P
~P
$YHUDJHJURVVGHEW
:HLJKWHGDYHUDJHLQWHUHVWUDWHRQJURVVGHEW
$YHUDJHLQYHVWPHQWVDQGFDVKEDODQFHV
:HLJKWHGDYHUDJHLQWHUHVWUDWHRQLQYHVWPHQWV
$YHUDJHQHWGHEW
:HLJKWHGDYHUDJHLQWHUHVWUDWHRQQHWGHEWa
a([FOXGHVLQWHUHVWUHODWLQJWRXQZLQGLQJRIGLVFRXQWRQSURYLVLRQVDQGGHULYDWLYHVQRWLQDGHVLJQDWHG
hedge relationship.
PC_FRONT.indb 86
5/15/2015 1:48:03 AM
Overview
The Strategic Report
Purpose and strategy
Delivering our strategy
0ur lines of business
Taxation
2XUHƪHFWLYHFRUSRUDWLRQWD[UDWHZDVFRPSDUHGZLWK
LQ{7KLVLVVOLJKWO\ORZHULQERWK\HDUVWKDQWKH8.FRUSRUDWLRQ
WD[UDWHRI
Our tax contribution
:HDUHSURXGWREHDPDMRUFRQWULEXWRUWRWKH8.HFRQRP\DQGKDYH
SDLG{RYHU~EQRI8.FRUSRUDWLRQWD[VLQFHSULYDWLVDWLRQLQ
7KLV\HDUZHSDLG8.FRUSRUDWLRQWD[RI~P~P
2XU{8.FRUSRUDWLRQWD[OLDELOLWLHVIRUWKH\HDUZHUHUHGXFHGE\WD[
GHGXFWLRQVRQRXUDOOHPSOR\HHVKDUHRSWLRQSODQPDWXULWLHVLQWKH
VXPPHURIDVZHOODVWKHWD[GHGXFWLEOHSHQVLRQGHƬFLWSD\PHQWV
%RWKWKHVHIDFWRUVZLOODOVRDƪHFWRXU8.FRUSRUDWLRQWD[SD\PHQWV
LQ:HSDLGQRQ8.FRUSRUDWHLQFRPHWD[HVRI~P
{~P
Group performance
Governance
Financial statements
Additional information
Tax expense
2XUWRWDOWD[H[SHQVHEHIRUHVSHFLƬFLWHPVZDV~P
~P7KLVLVQRWWKHVDPHDVWKHWRWDOFRUSRUDWLRQWD[ZHSDLGLQWKH
\HDUEHFDXVHRIGLƪHUHQFHVEHWZHHQWD[DFFRXQWLQJUXOHVDQGWKRVHIRU
PDNLQJFRUSRUDWLRQWD[SD\PHQWV
2XUHƪHFWLYHWD[UDWHRQSURƬWEHIRUHWD[DWLRQDQGVSHFLƬFLWHPV
LVVOLJKWO\ORZHUWKDQWKH8.VWDWXWRU\FRUSRUDWLRQWD[UDWH$VZH
KDYHVKRZQEHORZWKLVLVGXHWRWKHXVHRIQRQ8.ORVVHVSULRU\HDU
DGMXVWPHQWVDQGRWKHUWD[DGMXVWPHQWVZKLFKLQFOXGHWD[VDYLQJVIURP
FODLPLQJLQFHQWLYHVDQGUHOLHIV,QWKHDEVHQFHRIDQ\RWKHUIDFWRUV
ZH{ZRXOGH[SHFWRXUHƪHFWLYHWD[UDWHWREHDURXQGWKH8.FRUSRUDWLRQ
WD[UDWHDVWKHPDMRULW\RIRXUEXVLQHVVRFFXUVLQWKH8.
<HDUHQGHG0DUFK
%HIRUHVSHFLƬFLWHPV
2015
~P
~P
~P
,QDGGLWLRQWRSD\LQJ8.FRUSRUDWLRQWD[ZHSD\RWKHUWD[HVVXFKDV
(PSOR\HUoV1DWLRQDO,QVXUDQFHDQG%XVLQHVV5DWHVWKDWUHSUHVHQWD
VLJQLƬFDQWFRVWWRRXUEXVLQHVVHDFK\HDU:HDUHDOVRDPDMRUFROOHFWRU
RIWD[HVGLUHFWO\SD\LQJLQFRPHWD[DQG1DWLRQDO,QVXUDQFHGXHRQ
RXUSHRSOHoVZDJHVDQG9$7WRWKH8.([FKHTXHU:HGHVFULEHWKH
WRWDORIWKHWD[HVWKDWDUHDWUXHFRVWWRRXUEXVLQHVVDQGWKRVHWKDW
ZHFROOHFWDQGSD\RQEHKDOIRIRXUSHRSOHDQGFXVWRPHUVDVRXU
n7RWDO{7D[{&RQWULEXWLRQo
3URƬWEHIRUHWD[DWLRQ
1RQ8.ORVVHVXWLOLVHG
Prior year adjustments
7KLV\HDURXU7RWDO7D[&RQWULEXWLRQIRUWKH8.ZDV~EQ
~EQ7KH+XQGUHG*URXS7RWDO7D[&RQWULEXWLRQ6XUYH\IRU
UDQNHGXVDVWKHVL[WKKLJKHVW8.FRQWULEXWRU:HDOVRFRQWULEXWHG
~EQ~EQLQRXUODUJHVWQRQ8.MXULVGLFWLRQV
1RQGHGXFWLEOHLWHPV
2WKHUWD[DGMXVWPHQWV
20
s
Our approach to tax
(ƪHFWLYHWD[UDWH
19.9%
21.7%
22.5%
7KHZD\ZHDSSURDFKWD[LVVHWFHQWUDOO\DWDJURXSOHYHODQGLVDJUHHGE\
WKH%RDUG2XUPDLQIRFXVLVWRFRPSO\ZLWKWKHWD[ODZVDQGUHJXODWLRQV
LQHDFKRIWKHFRXQWULHVLQZKLFKZHGREXVLQHVV2XUJURXSWD[WHDP
VXSSRUWVUHJLRQDOPDQDJHPHQWWRPHHWORFDOWD[UHJXODWLRQVDQGUHYLHZV
SRWHQWLDOWD[H[SRVXUHVUHJXODUO\:HWDNHWKHEHQHƬWRIZLGHO\FODLPHG
WD[LQFHQWLYHVUHOLHIVDQGH[HPSWLRQVLQRUGHUWRUHGXFHWKHWD[FRVWWR
RXUEXVLQHVV7UDQVDFWLRQVEHWZHHQJURXSFRPSDQLHVDUHSDLGIRUDVLI
EHWZHHQXQFRQQHFWHGFRPSDQLHVDSSO\LQJ2(&'SULQFLSOHV
:HKDYHDQRSHQDQGHƪHFWLYHZRUNLQJUHODWLRQVKLSZLWK+05HYHQXH
{&XVWRPVDQGDUHFRPPLWWHGWRWKLVDSSURDFKZLWKORFDOWD[DXWKRULWLHV
DURXQGWKHZRUOG7KLVLQFOXGHVGLVFXVVLQJWKHWD[LPSDFWRIPDMRU
EXVLQHVVGHFLVLRQVZLWKWKHWD[DXWKRULWLHVZKHQWKH\KDSSHQ
87
7D[DW8.VWDWXWRU\UDWHRI
(ƪHFWLYHWD[FKDUJH
7KH8.FRUSRUDWLRQWD[UDWHKDVEHHQIDOOLQJDQQXDOO\VLQFH$SULO
,WFKDQJHGIURPWRRQ$SULODQGIURPWR
RQ$SULO7KLVKDVKDGDPDMRULQƮXHQFHRQRXUHƪHFWLYHWD[UDWH
LQUHFHQW\HDUV
:HKDYHVKRZQDUHFRQFLOLDWLRQRIUHSRUWHGSURƬWEHIRUHWD[DWLRQZKLFK
LQFOXGHVVSHFLƬFLWHPVWRWRWDOWD[H[SHQVHLQQRWHWRWKHFRQVROLGDWHG
ƬQDQFLDOVWDWHPHQWV
Tax losses
:HKDYH~EQRIWD[ORVVHV~EQWKDWZHKDYHQRW
JLYHQDQ\YDOXHWRRQRXUEDODQFHVKHHW
2IWKHVH~EQDUHFDSLWDOORVVHVDULVLQJLQWKH8.2IWKHUHPDLQLQJWD[
ORVVHVRI~EQPRVWDURVHLQRXUQRQ8.FRPSDQLHVLQHDUOLHUƬQDQFLDO
\HDUV:HPLJKWEHDEOHWRXVHWKHQRQ8.ORVVHVWRRƪVHWWD[OLDELOLWLHVLQ
WKHIXWXUHEXWWKLVZLOOGHSHQGRQXVPDNLQJSURƬWVLQFRXQWULHVZKHUHZH
KDYHSUHYLRXVO\PDGHORVVHV:HKDYHJLYHQPRUHGHWDLOVLQQRWHWRWKH
FRQVROLGDWHGƬQDQFLDOVWDWHPHQWV
PC_FRONT.indb 87
5/15/2015 1:48:03 AM
88
BT Group plc
Annual Report 2015
Capital expenditure
:HDUHPDNLQJVLJQLƬFDQWLQYHVWPHQWVLQRXUVWUDWHJLFJURZWKDUHDVDQG
WRLPSURYHRXUFXVWRPHUVHUYLFH%\FRQWLQXLQJWRWUDQVIRUPDQGGULYH
HƯFLHQFLHVZLWKLQRXUFDSLWDOSURJUDPPHVZHKDYHEHHQDEOHWRLQYHVWLQ
RXUJURZWKVWUDWHJ\ZLWKRXWLQFUHDVLQJRXURYHUDOOFDSLWDOH[SHQGLWXUH
2XUFDSLWDOH[SHQGLWXUHQHWRIJUDQWIXQGLQJZDV~P
~P:HKDYHVKRZQEHORZKRZWKLVZDVDSSOLHGDFURVVRXUPDMRU
FDSLWDOSURJUDPPHV
Balance sheet
Summarised balance sheet
2XUEDODQFHVKHHWUHƮHFWVRXUVLJQLƬFDQWLQYHVWPHQWLQWKHQHWZRUN
LQIUDVWUXFWXUHDVVHWVWKDWDUHWKHIRXQGDWLRQRIRXUEXVLQHVVDVZHOO
DVWKHZRUNLQJFDSLWDOZLWKZKLFKZHPDQDJHRXUEXVLQHVVGD\E\GD\
,W{DOVRUHƮHFWVWKHORQJHUWHUPIXQGLQJVWUDWHJ\ZLWKZKLFKZHƬQDQFH
RXULQYHVWPHQWVDQGRXUREOLJDWLRQWRWKHSHQVLRQIXQG
$W0DUFK
Capital expenditurea
Year ended 31 March
3URSHUW\SODQWHTXLSPHQW
VRIWZDUHDQGWHOHFRPVOLFHQFHV
£m
2015
~P
0RYHPHQW
~P
~P
2,500
*RRGZLOORWKHUDFTXLVLWLRQ
related intangible assets
2,000
2WKHUQRQFXUUHQWFXUUHQWDVVHWV
7UDGHRWKHUUHFHLYDEOHV
,QYHVWPHQWVFDVKFDVK
HTXLYDOHQWV
25,710
23,517
2,193
/RDQVRWKHUERUURZLQJV
7UDGHRWKHUSD\DEOHV
2WKHUFXUUHQWQRQFXUUHQWOLDELOLWLHV
1,500
1,000
Total assetsa
500
0
a
2013
2014
Broadband capex
Fibre capex
Network capex
Customer capex
2015
Support/Other capex
Excludes purchases of telecommunications licences.
2XUFDSLWDOH[SHQGLWXUHLQUHFHQW\HDUVKDVIRFXVHGRQXQGHUSLQQLQJ
RXUJURZWKVWUDWHJ\DQGLQSDUWLFXODURQH[SDQGLQJDQGHQKDQFLQJRXU
QH[WJHQHUDWLRQDFFHVVQHWZRUNZKLFKLQFOXGHVERWKƬEUHDQG(WKHUQHW
2QJRLQJLQYHVWPHQWVWKLV\HDUWRVXSSRUWRXUVWUDWHJ\LQFOXGH
r LQFUHDVLQJWKHIRRWSULQWRIRXUƬEUHEURDGEDQGQHWZRUNLQFOXGLQJ
H[WHQGLQJWKHUHDFKRIƬEUHWRUXUDODUHDVXQGHUWKH%'8.
SURJUDPPH:HKDYHQRZSDVVHGPRUHWKDQPKRPHVDQG
EXVLQHVVHVUHSUHVHQWLQJRYHUWKUHHTXDUWHUVRI8.SUHPLVHV
r FRQWLQXLQJWREXLOGRXU79FDSDELOLWLHVLQFOXGLQJ8OWUD+LJK'HƬQLWLRQ
DQG79(YHU\ZKHUHDVZHOODVHQKDQFLQJRXUFRQWHQWGLVWULEXWLRQ
QHWZRUN
r GHYHORSLQJRXUFDSDELOLWLHVDQGSURSRVLWLRQVIRU0RELOLW\DQG)XWXUH
9RLFHWRH[SORLWWKHFRQYHUJHQFHRIƬ[HGDQGPRELOHVHUYLFHV
r H[SDQVLRQRIRXUQH[WJHQHUDWLRQQHWZRUNVLQFOXGLQJH[SDQGLQJ
FDSDFLW\RQRXU,3([FKDQJHSODWIRUP
r FRQWLQXHGGHYHORSPHQWRIFXVWRPHUFRQWUDFWVSHFLƬFLQIUDVWUXFWXUH
IRURXUJOREDOFOLHQWVDQG
r LPSURYLQJFXVWRPHUH[SHULHQFHE\GHYHORSLQJQHZV\VWHPVDQG
UHSODFLQJHOHPHQWVRIRXUQHWZRUNWRUHGXFHIDXOWVDQGVSHHGXS
UHSDLU{WLPHV
:HUHFRJQLVHGJUDQWIXQGLQJRI~P~P
PDLQO\{UHODWLQJWRRXUFDSLWDODFWLYLW\RQWKH%'8.SURJUDPPH
2IRXUWRWDOFDSLWDOH[SHQGLWXUH~P~PDURVH
RXWVLGHWKH8.&DSLWDOH[SHQGLWXUHFRQWUDFWHGEXWQRW\HWLQFXUUHG
ZDV{~PDW0DUFK~P
Depreciation and amortisation
'HSUHFLDWLRQDQGDPRUWLVDWLRQUHGXFHGWR~PGXHWR
ORZHUFDSLWDOH[SHQGLWXUHLQUHFHQW\HDUVDVZHKDYHEHFRPHPRUH
HƯFLHQWLQGHOLYHULQJRXUFDSLWDOLQYHVWPHQWSURJUDPPHV2XUVRIWZDUH
GHYHORSPHQWFRVWVKDYHUHGXFHGKLVWRULFDOO\DQGVRPHRIRXUSUHYLRXV
QHWZRUNLQYHVWPHQWVEHFDPHIXOO\GHSUHFLDWHGLQERWKRI
ZKLFKDGGHGWRWKHRYHUDOOUHGXFWLRQLQGHSUHFLDWLRQDQGDPRUWLVDWLRQ
3URYLVLRQV
'HIHUUHGWD[OLDELOLW\
(24,902) (24,109)
(793)
3HQVLRQVQHWRIGHIHUUHGWD[
Total liabilities
7RWDOHTXLW\GHƬFLW
808
(592)
1,400
a([FOXGLQJGHIHUUHGWD[DVVHWUHODWLQJWRWKH%73HQVLRQ6FKHPH
2XUFRUHQHWZRUNLQIUDVWUXFWXUHLVLQFOXGHGZLWKLQSURSHUW\SODQWDQG
HTXLSPHQWVRIWZDUHDQGWHOHFRPPXQLFDWLRQVOLFHQFHV7KLVLVWKH
EDFNERQHRIWKH8.WHOHFRPVLQGXVWU\DQGDVLJQLƬFDQWFRUHDVVHWIRU
RXUEXVLQHVV7KHVHDVVHWVZHUHKHOGDWDQHWERRNYDOXHRI~EQ
DW0DUFK7KHQHWUHGXFWLRQRI~PLQWKH\HDUSULPDULO\
UHƮHFWVWKHUHODWHGGHSUHFLDWLRQDQGDPRUWLVDWLRQFKDUJHRI~P
H[FHHGLQJFDSLWDOH[SHQGLWXUHRI~P
*RRGZLOODQGRWKHUDFTXLVLWLRQUHODWHGLQWDQJLEOHDVVHWVLQFUHDVHGE\
~PSULPDULO\UHƮHFWLQJWKHLPSDFWRIIRUHLJQH[FKDQJHWUDQVODWLRQ
RIRYHUVHDVQRQFXUUHQWDVVHWV:HUHYLHZWKHUHFRYHUDEOHDPRXQWV
RIJRRGZLOODQQXDOO\DFURVV%7*OREDO6HUYLFHV%7%XVLQHVVDQG%7
&RQVXPHUWKHWKUHHFDVKJHQHUDWLQJXQLWVZKLFKKROGJRRGZLOO
DQG{DUH{VDWLVƬHGWKDWWKHVHVXSSRUWLWVFDUU\LQJYDOXHVHHQRWH
2WKHUQRQFXUUHQWDQGFXUUHQWDVVHWVDQGOLDELOLWLHVUHODWHSULPDULO\WR
RXUƬQDQFLDOLQVWUXPHQWVZKLFKZHKDYHGHVFULEHGLQQRWHWRWKH
FRQVROLGDWHGƬQDQFLDOVWDWHPHQWV
7UDGHDQGRWKHUUHFHLYDEOHVLQFUHDVHGE\~PWR~PZKLOH
WUDGHDQGRWKHUSD\DEOHVRI~PZHUH~PKLJKHUFRQWULEXWLQJ
WRWKHZRUNLQJFDSLWDORXWƮRZLQWKH\HDU)RUPRUHGHWDLOVVHHRXUFDVK
ƮRZVHFWLRQRQSDJH
,QYHVWPHQWVFDVKDQGFDVKHTXLYDOHQWVORDQVDQGRWKHUERUURZLQJV
DUHUHFRQFLOHGWRQHWGHEWRI~PLQQRWHWRWKHFRQVROLGDWHG
ƬQDQFLDOVWDWHPHQWV:HKDYHGLVFXVVHGQHWGHEWRQSDJH
3URYLVLRQVLQFUHDVHGE\~PWR~P:HKDYHDVLJQLƬFDQWSURSHUW\
SRUWIROLRZKLFKLQFOXGHVERWKRƯFHEXLOGLQJVDQGIRUPHUWHOHSKRQH
H[FKDQJHVVHHSDJH2QHURXVOHDVHSURYLVLRQVDPRXQWHGWR~P
:HKDYHVKRZQGHIHUUHGWD[PRYHPHQWVLQQRWHWRWKHFRQVROLGDWHG
ƬQDQFLDOVWDWHPHQWV3HQVLRQVQHWRIGHIHUUHGWD[LQFUHDVHGE\~EQ
WR~EQDQGDUHGLVFXVVHGEHORZ
,Q)HEUXDU\WKHFRPSDQ\LVVXHGPRUGLQDU\VKDUHVIRU~EQ
LQFRQWHPSODWLRQRIRXUSURSRVHGDFTXLVLWLRQRI((7KLVLVUHƮHFWHGLQ
WKHLPSURYHPHQWLQHTXLW\RIWKHJURXSDW0DUFKFRPSDUHG
ZLWKWKHSULRU\HDU
PC_FRONT.indb 88
5/15/2015 1:48:03 AM
$W-XQHWKHPDUNHWYDOXHRIDVVHWVZDV~EQDQGWKH
IXQGLQJGHƬFLWZDV~EQ7KHUHDUHDZLGHUDQJHRIDVVXPSWLRQV
WKDWFRXOGEHDGRSWHGIRUPHDVXULQJSHQVLRQOLDELOLWLHVDQGOHJLVODWLRQ
UHTXLUHVWKDWWKLVGHƬFLWLVEDVHGRQDSUXGHQWYLHZsIRUH[DPSOH
DVVXPLQJDORZHUIXWXUHLQYHVWPHQWUHWXUQWKDQPLJKWEHH[SHFWHG
LQ{SUDFWLFH
$\HDUGHƬFLWFRQWULEXWLRQSODQZDVDJUHHGUHƮHFWLQJ%7oVORQJWHUP
DQGVXVWDLQDEOHFDVKƮRZJHQHUDWLRQ8QGHUWKLVSODQZHPDGHGHƬFLW
SD\PHQWVRI~PLQ0DUFKDQG~PLQ$SULO)XUWKHU
SD\PHQWVRI~PZLOOEHPDGHLQHDFKRIDQG
EULQJLQJWKHWRWDOIRUWKHWKUHH\HDUVWR0DUFKWR~EQ
(8.0)
(6.1)
3.0
(7.0)
(1.5)
(4.1)
(6.0)
(9.0)
(11.0)
'HƬFLWQet of tax
Actuarial gains on assets
(10.0)
'HƬFLWDW 31 March 2015
7KHIXQGLQJRIRXUPDLQGHƬQHGEHQHƬWSHQVLRQSODQWKH%736
LV{VXEMHFWWROHJDODJUHHPHQWEHWZHHQ%7DQGWKH7UXVWHHRIWKH%736
DQGLVGHWHUPLQHGDWWKHFRQFOXVLRQRIHDFKWULHQQLDOYDOXDWLRQ7KHPRVW
UHFHQWWULHQQLDOIXQGLQJYDOXDWLRQDW-XQHDQGWKHDVVRFLDWHG
GHƬFLWFRQWULEXWLRQSODQZDVDJUHHGZLWKWKH7UXVWHHDQGFHUWLƬHGE\
WKH{6FKHPH$FWXDU\LQ-DQXDU\
(5.0)
Actuarial
movements
Actuarial losses on liabilities
BTPS funding valuation and future funding obligations
(4.0)
Cash
contributions
0.9
:HKDYHJLYHQPRUHLQIRUPDWLRQRQRXUSHQVLRQDUUDQJHPHQWVDQGRQ
WKHIXQGLQJDQGDFFRXQWLQJYDOXDWLRQVLQQRWHWRWKHFRQVROLGDWHG
ƬQDQFLDOVWDWHPHQWV
Income
statement
'HƬFLW
(£bn)
'HƬFLWFRQWULEXWLRQV
:HPDLQWDLQUHWLUHPHQWDUUDQJHPHQWVLQPRVWRWKHUFRXQWULHVZLWK
D{IRFXVRQWKHVHEHLQJDSSURSULDWHIRUWKHORFDOPDUNHWDQGFXOWXUH
0RYHPHQWVLQ,$6GHƬFLW
0.2
7KH%7566LVDFRQWUDFWEDVHGGHƬQHGFRQWULEXWLRQDUUDQJHPHQW
SURYLGHGE\6WDQGDUG/LIHXQGHUZKLFKPHPEHUVFKRRVHWKHLURZQ
LQYHVWPHQWVDQGUHFHLYHEHQHƬWVDWUHWLUHPHQWWKDWDUHOLQNHGWRWKH
SHUIRUPDQFHRIWKRVHLQYHVWPHQWV
89
7KHDFFRXQWLQJGHƬFLWQHWRIWD[KDVLQFUHDVHGLQWKH\HDUIURP~EQ
WR~EQ7KHPRYHPHQWVLQWKHGHƬFLWDUHVKRZQEHORZ
Regular contributions
7KH%736DQG%7566DUHQRWFRQWUROOHGE\WKH%RDUG7KH%736LV
PDQDJHGE\DVHSDUDWHDQGLQGHSHQGHQW7UXVWHH'HWDLOVRIWKH
JRYHUQDQFHRIWKH%736LWVƬQDQFLDOSRVLWLRQWKHSHUIRUPDQFHRILWV
LQYHVWPHQWVDQGDVXPPDU\RIPHPEHUEHQHƬWVDUHDYDLODEOHLQWKH
%736$QQXDO5HSRUWSXEOLVKHGE\WKH7UXVWHHLQ'HFHPEHU
RQ{WKH{%7367UXVWHHZHEVLWHZZZEWSHQVLRQVQHW
Additional information
Accounting position under IAS 19
(0.3)
:HSURYLGHDQXPEHURIUHWLUHPHQWSODQVIRURXUHPSOR\HHV7KHODUJHVW
RIWKHVHSODQVLVWKH%73HQVLRQ6FKHPH%736DGHƬQHGEHQHƬWSODQ
LQWKH8.$OWKRXJKFORVHGWRQHZPHPEHUVWKH%736VWLOOKDVDURXQG
DFWLYHPHPEHUVSHQVLRQHUVDQGGHIHUUHG
PHPEHUV7KH%75HWLUHPHQW6DYLQJ6FKHPH%7566LVWKHFXUUHQW
DUUDQJHPHQWIRU8.HPSOR\HHVZKRMRLQHGWKHJURXSDIWHU$SULO
,WKDVDURXQGDFWLYHPHPEHUV
Financial statements
1HWƬQDQFHFRVW
Overview
Governance
(0.3)
Pensions
Group performance
Service cost
0ur lines of business
(5.6)
Delivering our strategy
(1.4)
The Strategic Report
Purpose and strategy
'HƬFLWDt 1 April 2014
Overview
Deferred tax asset
$FWXDULDOJDLQVRQSODQDVVHWVIRUUHƮHFWDFWXDOLQYHVWPHQW
UHWXUQVLQWKH%736RYHUWKH\HDURIDURXQGZKLFKZHUHDERYHWKH
,$6GLVFRXQWUDWHRI
$IDOOLQWKHUHDOGLVFRXQWUDWHIRUWKH%736IURPWR
OHG{WRDQLQFUHDVHLQWKHOLDELOLWLHVZKLFKLVVKRZQDVDQDFWXDULDOORVVRQ
OLDELOLWLHV7KLVZDVSDUWLDOO\RƪVHWE\DIDOOLQOLDELOLWLHVUHƮHFWLQJVFKHPH
DQGPHPEHUVKLSH[SHULHQFHRYHUWKH\HDUIROORZLQJWKHXVHRIXSGDWHG
PHPEHUVKLSGDWD
Find out more
The BT Pension Scheme at
www.btpensions.net
PC_FRONT.indb 89
5/15/2015 1:48:03 AM
90
BT Group plc
Annual Report 2015
Contractual obligations and commitments
:HKDYHVHWRXWEHORZRXUSULQFLSDOFRQWUDFWXDOƬQDQFLDOREOLJDWLRQVDQG
FRPPLWPHQWVDW0DUFK<RXFDQVHHIXUWKHUGHWDLOVRQWKHVH
LWHPVLQQRWHVDQGWRWKHFRQVROLGDWHGƬQDQFLDOVWDWHPHQWV
QRWHLQFOXGHVGHWDLOVUHODWLQJWRRXUƬQDQFLDOFRPPLWPHQWVDQG
FRQWLQJHQWOLDELOLWLHV
Total
~P
/RDQVDQGRWKHU
ERUURZLQJVa
Finance lease obligations
9,387
Payments due by period
/HVV %HWZHHQ %HWZHHQ 0RUH
DQG WKDQ
WKDQ 1 and
years
1 year \HDUV 5 years
~P
~P
~P
~P
b 238
22
Operating lease obligations 6,524
&DSLWDOFRPPLWPHQWV
3URJUDPPHULJKWV
commitments
507
2,512
3HQVLRQGHƬFLWREOLJDWLRQV 8,721
Total
27,889
c
4,342
5,850
4,134 13,563
a([FOXGHVIDLUYDOXHDGMXVWPHQWVIRUKHGJHGULVNV
b,QFOXGHV~PRIDFFUXHGLQWHUHVWGXHZLWKLQOHVVWKDQRQH\HDU
c~PRIWKH~PZDVSDLGLQ$SULO
$W0DUFKRXUFDVKFDVKHTXLYDOHQWVDQGFXUUHQWDVVHW
LQYHVWPHQWVZHUH~P:HKDYHDQXQXVHGFRPPLWWHGERUURZLQJ
IDFLOLW\RI~EQDQGDQXQXVHG~EQFRPPLWWHGDFTXLVLWLRQIDFLOLW\
ZKLFKFDQEHDFFHVVHGWRIXQGRXUSODQQHGDFTXLVLWLRQRI((
7KHVHUHVRXUFHVDQGRXUIXWXUHFDVKJHQHUDWLRQDUHH[SHFWHGWRDOORZXV
WRVHWWOHRXUREOLJDWLRQVDVWKH\IDOOGXH
Delivering societal and
HQYLURQPHQWDOEHQHƬWV
:HZDQWWRPRYHEH\RQGMXVWEHLQJD
sustainable and responsible business leader
to completely integrating our purpose into all
WKDWZHVD\GRDQGGHOLYHU7KLVVKRXOGQRWRQO\
LPSURYHRXUEXVLQHVVSHUIRUPDQFHEXWPDNH
XVPRUHKHDOWK\DQGUHVLOLHQWRYHUDOO
2XUJRDOLVVXVWDLQDEOHSURƬWDEOHUHYHQXHJURZWKDQGZHDUHDEOH
WRGHPRQVWUDWHWDQJLEOHSURJUHVVLQEHQHƬWWLQJVRFLHW\DQGRXU
RZQEXVLQHVV:HKDYHVHWRXWEHORZVRPHLQQRYDWLRQVDQGQHZ
GHYHORSPHQWVIURPWKLV\HDUZKLFKVKRZWKDWVXVWDLQDELOLW\DQG
UHYHQXH{JHQHUDWLRQFDQEHPXWXDOO\UHLQIRUFLQJ
6RFLHWDOEHQHƬW
%XVLQHVVEHQHƬW
Connecting Africa project
provided satellite broadband to
up to 73,000 people
&RQQHFWLQJ$IULFDSURMHFWKDV
SDYHGWKHZD\IRUWKHODXQFK
RIDGGLWLRQDOFRPPHUFLDO96$7
RƪHULQJVLQ6RXWK$IULFD
30,000 people trained through
Get IT Together – over 25%
expected to experience a
reduction in social isolation as
a result
RISHRSOHJRRQWREX\
EURDGEDQG5HJLRQDOGLJLWDO
VNLOOVSURMHFWVUHLQIRUFHORFDO
JRYHUQPHQWUHODWLRQVKLSV
7.1Mt of customer CO2 emissions
abated, 11% more than last year,
LQFUHDVHGLQƮXHQFHRQFOLPDWH
policy
~EQRIUHYHQXHVFRQWULEXWLQJ
WRFDUERQDEDWHPHQW2YHU~P
RIFRVWVDYLQJVIURPHQHUJ\
UHGXFWLRQ~PRYHUWKHSDVW
VL[\HDUV
0DQ\RIRXUVRFLDODQGHQYLURQPHQWDOSURJUDPPHVDUHXQGHUSLQQHGE\
RXUSURDFWLYHDSSURDFKWRYROXQWHHULQJ:HKDYHJLYHQDQXSGDWHRQRXU
SURJUHVVRQSDJH
Supporting charities and communities
:HFRQWLQXHWRPDNHDQDGGLWLRQDOnLQYHVWPHQWLQVRFLHW\oHDFK\HDU
,QWKLVWRWDOOHG~P7KLVZDVPDGHXSRIDPL[WXUHRI
FDVKWLPHYROXQWHHUHGDQGLQNLQGFRQWULEXWLRQVHTXDWLQJWR
RIRXUSUHYLRXV\HDUoVDGMXVWHGSURƬWEHIRUHWD[7KLVEULQJVRXUWRWDO
LQYHVWPHQWWRDURXQG~PRYHUWKHSDVWVHYHQ\HDUVDQDYHUDJH
RI{RIDGMXVWHGSURƬWEHIRUHWD[HDFK\HDU
Total investment in society
Year ended 31 March 2015
1.01%
2013
2014
1.15%
32.5
1.12%
27.2
20
27.6
30
1.5%
27.1
1.9%
31.9
£m
40
10
0
2011
2012
2015
3HUFHQWDJHRISUHYLRXV\HDUoVDGMXVWHGSURƬWEHIRUHWD[DWLRQ
Investment – time, cash and in-kind support
PC_FRONT.indb 90
5/15/2015 1:48:03 AM
Overview
The Strategic Report
Purpose and strategy
Delivering our strategy
0ur lines of business
7KLV\HDUZHKHOSHGJHQHUDWH~PWRZDUGVJRRGFDXVHVPHDQLQJ
ZHKDYHDFKLHYHG~PFXPXODWLYHO\WRZDUGVRXUWDUJHWRI~EQ
E\:HFRQWLQXHWREXLOGRQRXUORQJWHUPSDUWQHUVKLSVZLWKRXU
VWUDWHJLFFKDULW\SDUWQHUV:HKDYHVXSSRUWHG&RPLF5HOLHIVLQFHLWV
ODXQFK\HDUVDJR2QWKHDSSHDOQLJKWWKLV\HDUDOOWHOHWKRQ
FDOOVZHUHKDQGOHGRYHURXUQHWZRUNSHDNLQJDWFDOOVSHUVHFRQG
2XU0\'RQDWHSODWIRUPKDQGOHGRYHU~PRIGRQDWLRQV5HG1RVH
'D\KDGDYHU\KLJKOHYHORIHPSOR\HHHQJDJHPHQWIURPDFURVV
WKHEXVLQHVVZLWKRYHUYROXQWHHUVSDUWLFLSDWLQJLQDYDULHW\RI
IXQGUDLVLQJDFWLYLWLHVsHTXLYDOHQWWR~PRIEHQHƬWLQNLQG
Developing a culture of tech literacy
:HDUHKHOSLQJWRIXQGWKH%DUHIRRW&RPSXWLQJSURMHFWWRKHOSSULPDU\
VFKRROWHDFKHUVJHWWRJULSVZLWKWKHQHZVFKRROVoFRPSXWLQJFXUULFXOXP
%7YROXQWHHUVDUHGHOLYHULQJWHDFKHUWUDLQLQJZRUNVKRSVDWVFDOH6LQFH
0DUFKWKHSURMHFWKDVSURYLGHGFRPSXWHUVFLHQFHUHVRXUFHVDQG
WUDLQLQJWRRYHUSULPDU\VFKRROWHDFKHUV7KLVHQDEOHVWHDFKHUV
ZLWKOLWWOHSUHYLRXVFRPSXWHUVFLHQFHNQRZOHGJHWRLQWHJUDWHDOJRULWKPV
DEVWUDFWLRQDQGGDWDVWUXFWXUHVLQWRWKHLUOHVVRQVZLWKFKLOGUHQIURP
WKHDJHRIƬYH)URPWKHDFDGHPLF\HDUZHZLOOGHYHORSDPRUH
FRPSUHKHQVLYHVFKRROVSURJUDPPHDFURVVWKH8.WRKHOSVXSSRUWRXU
DPELWLRQWRKHOSPFKLOGUHQE\
Creating a connected society
:HDUHEXLOGLQJRQRXUH[LVWLQJDPELWLRQWRGHOLYHUDFFHVVWRƬEUHEDVHG
SURGXFWVDQGVHUYLFHVWRQLQHRXWRIWHQSHRSOHLQWKH8.2XUQHZ
DPELWLRQLVn+HOSLQJPSHRSOHRYHUFRPHVRFLDOGLVDGYDQWDJH
WKURXJKWKHEHQHƬWVRXUSURGXFWVDQGVHUYLFHVFDQEULQJo7KLVLVDFOHDU
RSSRUWXQLW\WRVKRZKRZRXUSURGXFWVDQGVHUYLFHVFDQGHOLYHUVRFLDO
EHQHƬWDQGPDNHDUHDOGLƪHUHQFHWRSHRSOHDOORYHUWKHZRUOG:HFDQ
VKRZKRZFRPPXQLFDWLRQVWHFKQRORJ\DQGWKHVHUYLFHVZHGHOLYHU
FDQSRVLWLYHO\DGGUHVVNH\VRFLDOLVVXHVVXFKDVSRYHUW\VRFLDOPRELOLW\
DQ{DJHLQJSRSXODWLRQDQGGLVDELOLW\
7KLV\HDUZHSXEOLVKHGWKH6RFLDO5HWXUQRQ,QYHVWPHQWDQDO\VLVRIRXU
8.GLJLWDOLQFOXVLRQ7KLVLVKHOSLQJSULYDWHSXEOLFDQGYROXQWDU\VHFWRU
RUJDQLVDWLRQVWRPHDVXUHWKHLPSDFWRIEHLQJRQOLQH:HKDYHIRFXVHGRQ
PDWHULDORXWFRPHVWRLQGLYLGXDOV%7DQGWKH8.HFRQRP\)RUWKHƬUVW
WLPHWKLVKDVHQDEOHGXVWRPHDVXUHWKHVRFLDOLPSDFWRIRXUGLJLWDOVNLOOV
SURJUDPPHVDQGIHHGWKLVLQVLJKWEDFNLQWRWKHSURGXFWGHYHORSPHQW
F\FOH8VLQJWKLVPHWKRGRORJ\ZHKDYHFDOFXODWHGWKDWWKHEHQHƬWRI
JHWWLQJRQOLQHLVZRUWK~SHUSHUVRQSHU\HDUULVLQJWR~
IRU{DQDGYDQFHGXVHU
PC_FRONT.indb 91
Group performance
Governance
Financial statements
Additional information
91
Valuing Digital Inclusion
Year ended 31 March 2015
%HQHƬWV
60% of learners report
LPSURYHGFRQƬGHQFH
78% of learners stay
online after the
Get IT Together course
25% of learners
report a reduction
in social isolation
Reduced travel with
environmental savings
of 1.6m tonnes of CO2
So far we have helped 30,000
people take part in courses
and gain cRQƬdence and
competence in using the internet
We measure the social value
of someone going online in
the UK at £1,064 a year
Research by Just Economics for BT
'HOLYHULQJHQYLURQPHQWDOEHQHƬWV
7KLV\HDUZHKHOSHGRXUFXVWRPHUVUHGXFHWKHLUFDUERQHPLVVLRQV
E\WLPHVWKHHQGWRHQGFDUERQLPSDFWRIRXUEXVLQHVVIURP
0WWR0W7KLVZDVDQLPSURYHPHQWRQODVW\HDURIEXW
ZHVWLOOKDYHVRPHZD\WRJRWRDFKLHYHRXUJRDORIDUDWLR
:HDUHFRQWLQXLQJWRGHYHORSQHZSURGXFWVDQGVROXWLRQVWKDWFDQKHOS
RXUVXSSOLHUVDQGFXVWRPHUVUHGXFHWKHLUFDUERQHPLVVLRQV7KLV\HDU
ZH{JHQHUDWHGUHYHQXHVRI~EQJOREDOO\IURPWKHVHSURGXFWV
:HDUHXVLQJRXUUHVHDUFKFDSDELOLWLHVWRH[SORUHZD\VWRLPSURYHWKH
VXVWDLQDELOLW\FUHGHQWLDOVRIRXUSURGXFWVDQGVHUYLFHVDVZHKDYHGRQH
ZLWKRXUODWHVW+RPH+XE2XUUHVHDUFKLQFOXGHVLQYHVWLJDWLQJKRZRXU
SURGXFWVFDQUHGXFHFDUERQLPSDFWWKURXJKLPSURYHGHQHUJ\HƯFLHQF\
RUWKHXVHRIPRUHVXVWDLQDEOHPDWHULDOV:HDOVRDLPWRH[WHQGWKH
OLIHRIRXUSURGXFWVE\UHIXUELVKPHQWDQGUHXVH:HSURDFWLYHO\DSSO\
GHVLJQVSHFLƬFDWLRQVWRRXUQHZSURGXFWVDQGVHUYLFHVWRKHOSXVLGHQWLI\
LPSURYHPHQWRSSRUWXQLWLHVVXFKDVUHPRYLQJWKHLQVWDOODWLRQ&'VIURP
RXUQHZKXE
5/15/2015 1:48:04 AM
92
BT Group plc
Annual Report 2015
8SGDWHRQKRZZHDUHGHOLYHULQJRXUSXUSRVHs
:HFRQWLQXHWRGHPRQVWUDWHRXUOHDGHUVKLSLQGHOLYHULQJVRFLHWDODQGHQYLURQPHQWDOEHQHƬWVDQGZHKDYHHYROYHGRXUH[LVWLQJDPELWLRQV
WRJLYHIRFXVWRWZRRWKHUNH\DUHDV7HFK/LWHUDF\DQGWKH6RFLDO,PSDFWRIRXUSURGXFWVDQGVHUYLFHV2XWRIRXUVHYHQIRXQGDWLRQSHUIRUPDQFH
LQGLFDWRUVEHORZZHKDYHPDGHSURJUHVVDJDLQVWƬYHEXWIDLOHGWRPHHWWZRRXUVLFNQHVVDEVHQFHUDWHDQGRXUHWKLFDOWUDGLQJ
Our 2020 ambitions
2013/14 performance
2014/15 performance
8VHRXUVNLOOVDQGWHFKQRORJ\WRKHOS
JHQHUDWHPRUHWKDQ~EQIRUJRRGFDXVHV
~PUDLVHGIRUJRRG
causes
~PUDLVHGIRUJRRG
causes
&XPXODWLYHWRWDOVLQFH
~P
&XPXODWLYHWRWDOVLQFH
~P
,QVSLUHWZRWKLUGVRIRXUSHRSOHWRYROXQWHHU
by 2020a
RI%7SHRSOH
YROXQWHHULQJ
RI%7SHRSOH
YROXQWHHULQJ
,PSURYHXSRQ
RI%7SHRSOH
YROXQWHHULQJ
0RUHWKDQRXWRISHRSOHLQWKH8.ZLOO
KDYHDFFHVVWRƬEUHEDVHGSURGXFWVDQG
VHUYLFHV
RXWRISHRSOH
FDQDFFHVVƬEUHEDVHG
SURGXFWVDQGVHUYLFHV
RXWRISHRSOH
FDQDFFHVVƬEUHEDVHG
SURGXFWVDQGVHUYLFHV
&RQWLQXHWRLPSURYH
DJDLQVW
performance
+HOSLQJPSHRSOHRYHUFRPHVRFLDO
GLVDGYDQWDJHWKURXJKWKHEHQHƬWVRXU
SURGXFWVDQGVHUYLFHVFDQEULQJa
QDsQHZWDUJHW
QDsQHZWDUJHW
6WDUWWRGHOLYHU
against 2020 target
of 10m people
Building a
culture of Tech
Literacy
+HOSPFKLOGUHQUHFHLYHEHWWHUWHDFKLQJLQ
WHFKVNLOOVa
QDsQHZWDUJHW
QDsQHZWDUJHW
6WDUWWRGHOLYHU
against 2020 target
RIPFKLOGUHQ
Delivering
environmental
EHQHƬWV
+HOSRXUFXVWRPHUVUHGXFHFDUERQHPLVVLRQV
E\DWOHDVWWLPHVWKHHQGWRHQGFDUERQ
impact of our business
DFKLHYHG
DFKLHYHG
,PSURYHXSRQ
Supporting
charities and
communities
Creating a
connected
society
Status
Target for 2015/16
Page
&RQWLQXHWRLPSURYH
XSRQWRWDORI~P
90
32
91
91
91
91
Our foundations for being a sustainable and responsible business
Our foundations
2013/14 performance
2014/15 performance
Our
investment
,QYHVWPHQWLQUHVSRQVLEOHDQGVXVWDLQDEOH
EXVLQHVVSUDFWLFHVWREHPRUHWKDQRI
DGMXVWHGSURƬWEHIRUHWD[3%7
RI3%7LQYHVWHG
Our customers
Customer service: a measure across
RXUHQWLUHFXVWRPHUEDVH7DUJHWLVWR
FRQVLVWHQWO\LPSURYH5)7
Our employees
Status
Target for 2015/16
Page
RI3%7LQYHVWHG
0DLQWDLQRI3%7
LQYHVWHG
90
LPSURYHPHQW
LPSURYHPHQW
&RQWLQXHWRLPSURYH
5)7IURP
OHYHO
Employee engagement index: a measure of
RXUUHODWLRQVKLSZLWKRXUHPSOR\HHV
DFKLHYHG
DFKLHYHG
0DLQWDLQRULPSURYH
IURP
performance
Sickness absence rate: RIFDOHQGDUGD\V
ORVWWRVLFNQHVVDEVHQFH
FDOHQGDUGD\V
ORVWLQVLFNQHVV
FDOHQGDUGD\V
ORVWLQVLFNQHVV
0DLQWDLQRULPSURYH
IURP
performance
Ethical performance
DPHDVXUHRIRXUHPSOR\HHVoDZDUHQHVVDQG
training
DFKLHYHG
DFKLHYHG
0DLQWDLQRULPSURYH
IURP
performance
Our suppliers
Ethical trading: a measure of our supply
FKDLQUHYLHZZLWKVSHFLƬFIRFXVRQ+XPDQ
5LJKWV
IROORZXSZLWKLQ
WKUHHPRQWKV
IROORZXSZLWKLQ
WKUHHPRQWKV
IROORZXS
ZLWKLQWKUHHPRQWKV
IRUDOOWKRVHVXSSOLHUV
LGHQWLƬHGDVKLJK
PHGLXPULVN
Our
environmental
impact
CO2e emissions: a measure of our climate
FKDQJHLPSDFW
UHGXFWLRQLQQHW
&22e emission intensity
DJDLQVWOHYHOV
UHGXFWLRQLQQHW
&22e emission intensity
DJDLQVWOHYHOV
&RQWLQXHWRGHOLYHU
DJDLQVWWDUJHW
by December 2020
22
32
32
47
37
40
a New 2020 ambition
Target met
PC_FRONT.indb 92
Target failed
Ongoing
7RƬQGRXWPRUHDERXWRXUDPELWLRQVRXUPHWKRGRORJLHVDQGKRZRXU
results are calculated, take a look at www.bt.com/deliveringourpurpose
5/15/2015 1:48:04 AM