Sir Michael Rake
Chairman
Business Performance
Revenues up by 2% to £20.7 billion
Pre-tax profit* £2.5 billion
Earnings per share* up 5% at 23.9p
Free cash flow up 11% at £1.5 billion
* Before specific items
Dividends
Dividends per share
15.1
15.8
11.9
10.4
8.5
2003/4
2004/5
2005/6
2006/7
2007/8
Charitable support
Bringing it all together
for London 2012
Ian Livingston
CEO
FY 2007/8 – Group financial headlines
Group revenue
EBITDA
(1)
Earnings per share
Free cash flow
Dividend
(1) Before specific items
(1)
£20.7bn
2%
£5.8bn
3%
23.9p
5%
£1.5bn
11%
15.8p
5%
Group Revenue – 13% growth over 4 years
21
20
£bn 19
18
17
2003/4
2004/5
2005/6
2006/7
2007/8
Earnings per Share* - 41% growth in 4 years
Pence per
share
* Before specific items
24
23
22
21
20
19
18
17
16
15
14
2003/4 2004/5 2005/6 2006/7 2007/8
Strength in mix of customers and businesses
FY 2007/8 – revenue by customer
Corporate
Consumer
24%
26%
Carrier
37%
13%
Business
BT is truly a global company
UK
Russia / CEE
North America
91,300 employees
400 employees
3,800 employees
Revenue £17.2bn
Revenue £730m
Western Europe
Revenue £28m
10,500 employees
Revenue £2.6bn
Latin America
Asia Pac
900 employees
MEA
5,000 employees
Revenue £76m
200 employees
Revenue £132m
Revenue £34m
112,000 BT people
Revenue £20.7bn in 07/08
Corporate
Strong growth in revenue driven by very strong global order
book
Corporate Revenue
8000
7000
6000
£m
5000
4000
3000
2003/4
2004/5
2005/6
2006/7
2007/8
Carrier - Openreach
• 28,000,000 lines
• 13,000,000 broadband connections
• Service to over 450 communicator
providers
• Reduced access network faults by 10%
• Provision and repair lead times halved
Broadband availability by country
DSL Coverage by country June 2007
100% 99%
97% 95%
90%
82%
78%
10%
OECD
Weighted
Average
Source : OECD Telecommunications
Database
Carrier - BT Wholesale
Affected by regulatory
change
Decline in low margin transit
Introduced family of 21CN
‘smart’ broadband services
• Higher speeds
• Flexible bandwidth
• Quality control for video
£1.8bn of contracts signed in
2007/8
BT Business
Helping businesses do what they do best
BT Business - Tradespace
BT
Business
11
Revenue growth
9
7
5
3
%
1
-1
-3
-5
-7
From 5% decline to 5% growth (annual 05/06 to
07/08)
Consumer
Serving 15 million households
UK’s No.1 retail broadband provider
- 4.4m connections
Value for money
Innovative products
Service
Consumer - delivering value for money
Calls – Package prices more than halved in 2 years
- Anytime from £14.50 to £5.95
- Evenings/Weekends from £5.50 to £2.70
Broadband – Prices halved since 2001
- Speeds up 16 fold
And – Calling BT is now free
Consumer - BT Total Broadband – innovative
BT ToGo
products
Security & Storage
BT Broadband Talk
Entertainm
ent
Wireless
Network
s
Monitoring
and Control
Gaming
Home IT advisor
Priorities
No. 1 for customer service
Investing in platforms, globally
Agility
Continue to deliver for customers and shareholders
Customer service
• Dissatisfaction with telephony repair reduced by 25%
• Broadband repair & help – dissatisfaction reduced by a
third
• 17% reduction in complaint volumes
• Abandoned calls halved
But – a lot more to do
Next Generation Broadband: A bold vision for
the UK
UK’s biggest super fast broadband
investment: £1.5 bn
Accessible by up to 10 million homes by
2012
Range of speeds up to 100mbps: with
>1,000mbps potential
BUT we need the barriers to investment
removed
2
What it means for consumers
TODAY…
Fast
internet..
.
Instant
messaging…
VoIP…
BT Vision…
iPlayer
…
8
TOMORRO
W…
Multi viewing HD
TV...
Advanced HD
gaming…
HD video
conferencing…
A world of new
possibilities
The
Mail
The Sun
Priorities
No. 1 for customer service
Investing in platforms, globally
Agility
Continue to deliver for customers and shareholders