September 2015 Shareholder Exclusive A message from your Chairman Direct dividend information BT Mobile Shareholder offer Shareholder prize draws 1 3 7 9 We use the power of communications to make a better world A message from your Chairman We held our annual general meeting at Old Billingsgate in London this year. You can find full details of the meeting, including the voting results, online at www.bt.com/btagm2015 At the meeting I reported on a very positive year. Our financial results continued to meet or exceed expectations, while we maintained our record for investing in the longterm value of the business with major announcements in areas such as broadband and mobile. We also grew our dividend in line with guidance we gave at the start of the year. I am pleased to report that at the AGM our shareholders approved a final dividend of 8.5p (up 13%), meaning a 14% increase in the 2015 full year dividend to 12.4p per share. The launch of BT Mobile started well with more than 100,000 mobile customers signing up for a BT SIM in the first three months. We aim to accelerate our mobile presence with the purchase of EE and have made a strong case for the Competition and Markets Authority to approve the acquisition. This will allow us to create a true UK digital champion, providing customers with greater choice and value and helping to deliver the UK’s connected future. We’ve recently launched BT Sport Europe, the new home of UEFA Champions League football, which is free for our BT TV customers. We’re also leading the way on Ultra HD TV. Our BT Sport Ultra HD channel is the first live sports channel in Europe offering picture quality four times that of normal high definition. The rollout of superfast broadband over fibre optic cables is one of our most significant investments. Four out of five UK premises can now access these services from BT. Our rollout is on course to get overall UK coverage of superfast services to 95% by the end of 2017. Our ambition is to go even further. During the year we announced plans to move most of the UK from superfast to ultrafast services in the coming years. These investments serve the interests of shareholders, customers and the nation as a whole. Our goal is to deliver sustainable, profitable revenue growth supported by the investments we are making. We made progress towards this goal last year, and I am confident BT will continue to make further progress, delivering long-term value for our shareholders. We’ve also been investing to improve customer service and are seeing some results. Openreach is running ahead of all 60 minimum service levels set by the regulator, Ofcom. We’re not yet where we want to be, but we’ve made progress and remain ambitious for the year ahead. Sir Michael Rake Chairman 7 September 2015 1 BT Sport Europe is the new home of UEFA Champions League football and it’s free for our BT TV customers Our investment in fibre broadband is transforming lives Our rollout of superfast broadband over fibre optic cables continues and four Items presented as adjusted are before specifithese c items. services from BT outa of five UK premises canstated now access 2 Receive your dividends direct and have a chance to win one of our great prizes Why not receive your dividends direct to your bank or building society account? All you need to do is call us with your bank details on 0808 100 4141 – it’s free. For more details go to www.shareview.co.uk Don’t delay – sign up today – the prize draws close on 31 October 2015. Why choose direct dividend payment? 3 It’s more secure. No trips to the bank. One tax voucher in May for all dividends in the previous tax year No fees for lost cheques. BT Tower trip Get away from it all At nearly 600ft tall, the BT Tower gives you spectacular panoramic views of the city of London. You can visit as our VIP guest and see the sights for yourself. Win a 3-night weekend break with Warner Leisure Hotels at any one of their stylish hotels*. Stay in a standard room and enjoy a range of daytime activities including full use of the leisure and sports facilities. Delicious breakfasts and evening meals are also included. Simply choose to receive your dividends direct by 31 October 2015 and we’ll enter you into the draw to win two tickets for a memorable visit to the BT Tower.* All prize winners must be over 21 years of age. iPad Air Naked Wines Win a new, 16GB iPad Air*. Thin, lightweight and Wi-Fi enabled, it’s one of the best tablets around. All shareholders who register to receive dividends direct will automatically receive a £30 credit with Naked Wines when ordering a 6 or 12-bottle case of wine. It has a re-engineered 9.7-inch Retina display, the revolutionary Touch ID fingerprint sensor, a powerful A8X chip with 64-bit architecture, a new iSight camera, an improved FaceTime HD camera, faster wireless, iOS 8, iCloud and up to 10 hours of battery life. It also comes with great apps for productivity and creativity. What’s more, all shareholders who choose direct dividends will be entered into a prize draw to win a 6-bottle case of Moutard Champagne*. *To enter, sign up to receive direct dividends. For all prize draw terms and conditions, go to www.bt.com/signup All prize draws close on 31 October 2015. 4 Making a difference in local communities BT has always believed in the powerful impact of volunteering, and using the power of communications to make a better world. Every day our people use their passion, expertise and skills to make a difference in their local communities, and we encourage our employees and other stakeholders to give their time to release the potential of others. Releasing the potential of thousands of disabled children You can join in and support grassroots sports clubs BT’s partnership with the Lord’s Taverners – the cricket charity supporting disabled and disadvantaged young children – is now in its sixth year. Together we have funded the installation of 20 multi-sensory rooms in special education needs schools across the UK, helping to improve the lives of thousands of disabled children with complex communication problems. BT has launched the ‘BT School Champion’ volunteering programme matching an employee to each school we’re supporting, building a deeper connection that lives on beyond the opening of the sensory room. BT continues its partnership with Join In, the London 2012 legacy volunteering charity, with the aim of building a national network of volunteers supporting grassroots sports clubs across the UK. Hundreds of BT employees have given their time to date, and many have signed up to become Join In ‘Local Leaders’ with additional responsibility for coordinating volunteer support in their local areas. BT’s Paralympic Ambassador Jonnie Peacock opened the latest sensory room at the Samuel Pepys School in his home county of Cambridgeshire. He said, “To witness the effects that these multi-sensory rooms have on young people’s lives is incredible.” Find out more at www.bt.com/betterfuture 5 Find out how you can volunteer at www.joininuk.org The Supporters Club continues to grow Supporting the growth of Wheelchair Rugby The Supporters Club, BT Sport’s partnership with Comic Relief, aims to build a better world by bringing people together through sport. Earlier this year BT entered a three-year partnership with GB Wheelchair Rugby, supporting the elite Great Britain squad who compete at international level in addition to helping wheelchair rugby to grow at grassroots level. Commonly referred to as ‘murderball’, wheelchair rugby is one of the most thrilling disability sports to play – and to watch! BT Sport customers can sign up to make monthly donations of £1, £3 or £5 to The Supporters Club and to date the initiative has raised £4.3 million, with almost 100,000 customers giving each month. The Supporters Club gives grants to charities who use sport to change the lives of disadvantaged young people. The funding works to improve achievement in school, tackle exploitation and abuse, and increase skills, opportunities and employment. One such charity is the Homeless FA, where our funding delivers a football training centre project, developing life skills and teaching sports leadership to young people experiencing homelessness. The work of the Homeless FA will feature in a documentary from BT Sport films at the end of the year. From 12 to 16 October, eight elite wheelchair rugby teams from around the world will compete in the BT World Wheelchair Rugby Challenge at the Copper Box Arena on the Queen Elizabeth Olympic Park. The GB squad are hoping for victory, as they prepare for the Rio 2016 Paralympic Games next September. Find out more at www.bt.com/disabilitysport Find out more at www.btsport.com/thesupportersclub 6 Get an Amazon.co.uk Gift Card* when you switch to BT Mobile today Shareholders will receive an Amazon.co.uk Gift Card credited with up to £30 when you switch to BT Mobile. Just follow the steps to switch to BT Mobile and claim your gift card using the link below. 500MB Plan 500MB data 200 minutes Unlimited texts 12-month contract £20 Amazon.co.uk Gift Card 2GB Plan Use code BTM091528 to claim your gift card 2GB data 500 minutes Unlimited texts 12-month contract £30 Amazon.co.uk Gift Card 20GB Plan 20GB data Unlimited minutes Unlimited texts 12-month contract £30 Amazon.co.uk Gift Card Follow the steps below to claim your gift card: Switch now. Visit bt.com/shareholdermobile or call 0800 032 6620 UK calls to UK landlines (starting 01,02,03) and UK mobiles, standard UK texts and data within the UK. You cannot share your data connection with other devices – known as tethering. Speeds vary by location, coverage and demand. One minute minimum call charge. Service numbers beginning 084, 087, 09 and 118 have an access charge of 30p per minute plus a service charge set by the company you call. 0800 numbers and calls to voicemail included. Compatible phone needed, may need unlocking. 500MB Plan customers get a £20 Amazon.co.uk Gift Card and 2GB and 20GB Plan customers get a £30 Amazon.co.uk Gift Card Available to new BT Mobile SIM customers ordering the service between the 7/09/2015 and 31/10/2015. By invitation only for BT shareholders. BT Mobile is subject to the standard terms of services. The voucher is non-transferable. One voucher per SIM order. Excludes other offers. You will be able to redeem this voucher 14 days after activation of your BT Mobile SIM by going to the link at bt.com/shareholderclaim. Vouchers must be claimed by 31/12/ 2015. Cannot be used with employee offers. No cash alternative. This offer is only available for a purchase made on Amazon.co.uk. Any purchase made will be subject to Amazon standard terms of sale or service. See our terms and conditions at bt.com/legalstuff. *Amazon.co.uk is not a sponsor of this promotion. Amazon.co.uk Gift Cards (“GCs”) may be redeemed on the Amazon.co.uk website towards the purchase of eligible products listed in our online catalogue and sold by Amazon.co.uk or any other seller selling through Amazon.co.uk. GCs cannot be reloaded, resold, transferred for value, redeemed for cash or applied to any other account. Amazon.co.uk is not responsible if a GC is lost, stolen, destroyed or used without permission. See www.amazon.co.uk/gc-legal for complete terms and conditions. GCs are issued by Amazon EU S.à r.l. All Amazon ®, ™ & © are IP of Amazon.com, Inc. or its affiliates. 7 Shareholder offers BT Shop Save £100 on the BT Home SmartPhone S, our home smartphone that blocks nuisance calls, it also has the ability to surf the web, check emails, update Facebook, and download apps, all on your home phone! To find out what’s available, call 0800 917 0514 or visit www.bt.com/shop/shareholder Demand is usually very high, so we’re only able to make these offers available for a limited period. Fred. Olsen Cruise Theatre tickets Award-winning Fred. Olsen Cruise Lines operates a stylish fleet which can access many ports that larger cruise ships cannot, taking you ‘right to the heart’ of over 200 destinations around the world. Ideal for individual or group travel and with a fantastic 10% discount off all cruises for BT shareholders, friendly Fred. Olsen has just the cruise holiday for you! BT has teamed up with Ambassador Select to bring all BT shareholders a selection of the best shows and ticket offers from around the UK. Check out their offers at bt.ambassadorselect.com To book call 0844 871 7615 and quote the offer code PROMO-NETWORK Terms and conditions apply. To book call Fred. Olsen Cruise Lines Reservations Team on 0800 0355 110, quoting GRP0095 and promotional code ‘BTSHARE’. www.fredolsencruises.com For more shareholder offers, go to www.bt.com/shareholderoffers 8 Shareholder prize draws We’re delighted to offer all shareholders the chance to enter three prize draws – see details below. iPad mini 3 One lucky shareholder could win a brand new Apple iPad mini 3*. With 16GB memory and Wi-Fi, the iPad mini 3 comes with powerful apps for the everyday things you do, like surfing the web, checking email, editing videos and photos, listening to music and reading books. There are hundreds of thousands of apps on the App Store, so whether it’s photography, gaming, travelling or managing your finances, you’ll find an app that will help you do it better. This prize draw closes on 31 October 2015. To enter call 0800 138 5110 or go to www.bt.com/signup BT Christmas Concert BT Rugby Chris Hollins is back to present a wonderful concert of festive delights, from traditional carols to favourite hits at the BT Christmas Concert on Monday 14 December. Wheelchair rugby is a thrilling sport to watch, and we’re giving five shareholders the chance to win a pair of tickets to the BT World Wheelchair Rugby Challenge*. We’re offering two shareholders the chance to really get into the Christmas spirit and win a pair of tickets to this great performance*. This prize draw closes on 31 October 2015. To enter call 0800 138 5110 or go to www.bt.com/signup 9 You’ll be watching GB vs France at the Copper Box Arena, London at 19.30 on Monday 12 October. Don’t miss out – prize draw closes on 30 September 2015. To enter call 0800 138 5110 or go to www.bt.com/signup *To enter and request prize draw terms and conditions, call 0800 138 5110 or go to www.bt.com/signup Become an e-shareholder As an e-shareholder, everything’s more straightforward. We’ll communicate with you electronically and your dividends will be paid directly into your bank or building society account. It’s easier and quicker all round. our sure y s are e k a M il t deta k at c a t n co hec ct – c w.co.uk e r r o c evie .shar www How do I sign up? Step one Step two Register online at www.bt.com/signup or scan the QR code, give us your email address and add your shareholder reference number (from your dividend tax voucher). Look out for your activation code in the post. When you receive it, add your bank or building society details online. Simple! If you already receive your dividends direct to your bank or building society account, you can become an e-shareholder by signing up to receive your communications electronically. All you need is your shareholder reference number and your email address. Go to www.bt.com/signup for more information on e-shareholding and to register your e-shareholder account. Then update your details to ‘email’ rather than ‘paper’. It couldn’t be easier! Introducing Consolidated Tax Vouchers From the 2015/16 UK tax year, we will send you Consolidated Tax Vouchers. By choosing to receive your dividends direct to your bank or building society, you will automatically receive an annual consolidated tax voucher with our annual mailing in May, giving you all your BT dividend tax information for the previous tax year in one statement. SEPT MAY Separate tax vouchers for each dividend. One tax voucher in May for all dividends paid in the previous tax year. FEB 10 Don’t be a target for share fraud Fraudsters use persuasive, high-pressure tactics to scam investors. They may offer to sell you shares that turn out to be fake or worthless, or to buy your shares at a high price if you pay an upfront fee. Either way, the promised profits won’t materialise and you’ll probably lose your money. Here’s how to avoid investment scams. How to avoid share fraud Report a scam 1 Reject cold calls If you’ve been cold called with a high-risk offer to buy or sell shares, chances are it’s a high risk investment or a scam. You should treat the call with extreme caution. The safest thing to do is hang up. If you suspect that you have been approached by fraudsters please tell the FCA using the share fraud reporting form at www.fca.org.uk/scams, where you can find out more about investment scams. You can also call the FCA Consumer Helpline on 0800 111 6768. 2 Check the firm on the FS Register at www.fca.org.uk/register The Financial Services Register is a public record of all the firms and individuals in the financial services industry that are regulated by the Financial Conduct Authority (FCA). If you have lost money to investment fraud, you should report it to Action Fraud on 0300 123 2040 or online at www.actionfraud.police.uk 3 Get impartial advice Think about getting impartial financial advice before you hand over any money. Seek advice from someone unconnected to the firm that has approached you. Find out more at www.fca.org.uk/scamsmart Remember: if it sounds too good to be true, it probably is! Contact information Shareholder helpline For general enquiries call: Freefone: 0808 100 4141 (+44 121 415 7178*) Textphone: 0800 169 6907 (+44 121 415 7028*) BT Shop: 0800 917 0514 Online Post You can find information on how to manage your shareholdings at help.shareview.co.uk Equiniti, Aspect House, Spencer Road, Lancing, West Sussex, BN99 6DA, United Kingdom If your question is not answered by the information provided, you can send your enquiry via secure email from these pages. *calls from outside the UK BT Group plc www.bt.com Registered office: 81 Newgate Street, London, EC1A 7AJ Registered in England and Wales No. 4190816. PHME: 75789 Printed in England by Communisis plc Printed on FSC 130gsm Pavarotti silk Design by mslgroup.co.uk (Please include a daytime telephone number.)