February 2015 Shareholder Exclusive Chairman’s message 2 Direct dividend information 4 Shareholder prize draws 10 We demonstrate the world’s fastest data transmission over fibre. A message from your Chairman In December, we marked 30 years since BT was privatised. This was the first privatisation where ordinary members of the public had the opportunity to buy shares. Take-up was enthusiastic and I am delighted that today around a million people own a stake in the company. Our shares were sold for 130p each when they made their stock market debut in 1984. They’ve delivered an average 10% return each year since then. You can see more about how we marked 30 years on pages 6 and 7. We continue to reward the many people for whom BT share dividends make a real difference. As announced last October, we paid an interim dividend of 3.9p per share on 9 February, an increase of 15%. We remain committed to paying progressive dividends underpinned by long-term growth in our cash flow. We are able to commit to that approach thanks in large part to the success of our investment in faster broadband, delivered over fibre optic cable. These faster services are now available to more than 21 million premises. The demand is heartening, with a new customer signing up for fibre broadband every 22 seconds, 24 hours a day. We made fibre broadband available to two-thirds of the UK with investors’ money, and won government tenders for public money to help in harder-to-reach (often rural) areas. To date, 1.5 million properties can access fibre broadband thanks to the publicly funded programme. That programme will ensure coverage to 90% of UK premises, with a new round of tenders planned to extend this to 95% by the end of 2017. We’ll compete for those tenders and also continue exploring ways to achieve beyond 95% coverage. BT Sport has entered its second year. We continue to see good growth in audience viewing figures for the Barclays Premier League and have more great content lined up for 2015, including the UEFA Champions League from August. 2 Last autumn we unveiled our new innovation programme – Ingenious. This included the launch in December of the UK’s first National Inventors’ Day, an event designed to celebrate Britain’s rich heritage of invention and inspire the next generation. To mark the occasion, BT and Huawei announced field trial speeds of up to three terabits per second, believed to be the fastest real-time super channel speeds ever achieved over an existing fibre link - the speeds are equivalent to transmitting around 100 HD films in a single second. We also ran a series of events and workshops for children, encouraging them to think more inventively. This year we’re marking the BT Tower’s 50th birthday. To celebrate, we’re offering one BT shareholder the chance to win a complete set of BT Tower Golden Jubilee merchandise. See page 10 for more details. Our goal is to deliver sustainable, profitable revenue growth supported by the investments we are making. We made notable progress towards this goal in 2014, and I am confident BT will make further progress in the period to come, delivering long-term value for our shareholders. Sir Michael Rake Chairman 9 February 2015 BT’s TV service is delivered live over fibre broadband in more than half the country. National Inventors’ Day paid tribute to the creativity and pioneering spirit of UK inventors. Fibre broadband is transforming the lives of people across the UK. BT Sport hosts some of the best live sporting action. 3 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. OR, complete the form attached to your tax voucher and pop it in the post. For more details go to www.shareview.co.uk Don’t delay – sign up today – the prize draws close on 31 March 2015. Why choose direct dividend payment? 4 It’s more secure. No trips to the bank. We’ll still send you a tax voucher. No fees for lost cheques. BT Tower trip Naked Wines At a height of nearly 600ft, the BT Tower gives you spectacular panoramic views of the city of London. Imagine visiting as our VIP guest and seeing the sights for yourself. All shareholders who register to receive dividends direct will automatically receive a £30 credit with Naked Wines when you order a 6 or 12-bottle case of wine. When you choose to receive your dividends direct by 31 March 2015, we’ll enter you into a draw to win two tickets for a breathtaking visit to the BT Tower*. 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*. iPad Air Take a break Win a new, 16GB, iPad Air*. Thin, lightweight and Wi-Fi enabled, it’s one of the best tablets around. Win a 3-night weekend break with Warner Leisure Hotels at one of 13 locations*. Stay in a stylish Signature room in a Country Hotel or Premier chalet at a Coastal Village, enjoy a range of daytime activities and be dazzled by evening entertainment. Delicious breakfasts and evening meals are also included. 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. All prize winners must be over 21 years of age. *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 March 2015. 5 A celebration of 30 years In December 2014, we marked the 30 years since BT was privatised with events for employees and shareholders and the opening of the London Stock Exchange on 3 December, the day BT shares first traded back in 1984. While much has changed over the last 30 years, BT has continued to lead the way through using the power of communications to make a better world by making connections, creating possibilities and delivering value. ened CFO, op am, BT change g u m k n c a to Ex Tony Ch ondon S L e h t on trading 2014 cember on 3 De 6 A cake to celebrate a slice o f history An or iginal share emplo holde yee w r and ith he forme r Buz r BT by sc arf thrills Sport brings the The launch of BT m fro t or sp , top-league and spills of live around the world We bring the fir st high speed In ternet services to home s and businesse s across the UK es who shared nning employe One of our wi oments’ their ‘magic m A magical expe rience for mo ther and daughter celebrating 30 years Laboratories, Working with Dolby lity, crystal clear we launch high-fide g llin conference ca Exclusive offer for shareholders on BT Infinity. Save £90 vs standard price We’d like you to experience BT Infinity,† our superfast fibre optic broadband. As a shareholder, you can get Unlimited BT Infinity with Unlimited UK* Weekend Calls for £20 a month (plus line rental for £16.99 a month).1 This is a big saving of £90 on this package (over an 18-month contract).2 This great price includes all the features you expect from BT Broadband. To get this exclusive deal, just follow the link below to see if we can connect your home. bt.com/broadband/shareholder £6.95 Hub delivery charge. †Not all lines in Infinity-enabled areas can support the Infinity service. Visit bt.com/infinity to see if your line can. *Means calls of up to an hour to 01, 02, 03, 0845 and 0870 numbers, excluding the Channel Islands. Other exclusions apply. Excludes indirect access numbers and dial-up internet access. 1. Unlimited BT Infinity 2 and Unlimited UK* Weekend Calls – £20 a month. Available by invitation only to new and existing BT Infinity customers who sign up to an 18-month minimum term and pay BT line rental. Standard line rental is £16.99 a month. You’ll pay £28 a month from month 19. Non-offer price for new BT Infinity customers: £20 a month for 3 months, then £26 a month for 15 months. £28 a month from month 19 / Existing customers non-offer price: £28 a month. Unlimited Infinity 2 includes Unlimited UK* Weekend Calls and a BT Home Hub (unless BT has already provided you with one). There’s a £6.95 delivery charge for the Home Hub. If you decide to stop your contract in the first year, we’ll charge you up to £65 towards the cost of your new BT Home Hub. You’ll need to pay by Direct Debit. Subject to availability, minimum line speed and computer specifications. Prices may change during contract period. See our terms and conditions at bt.com/terms Terms apply. 2. Savings: Calculated against the standard price of Unlimited Infinity 2: £20 a month for the first three months, then £26 a month on an 18-month contract. Calls to 0871 numbers will cost no more than 10.2ppm plus 15.97p set-up fee; calls to 070 numbers no more than 51ppm, with a maximum set-up charge of 51p. See bt.com/personal/pricing Shareholder offers BT Shop Fred. Olsen Cruises The BT Shop is always a great place to pick up the latest technology – whether it’s a phone, camera, Smart TV or laptop. As a shareholder, you’re entitled to some very special offers. Save up to 42% on the brand new BT8500 Nuisance Call Blocker range that blocks up to 100% of nuisance calls. There’s no better way to travel the world than on a cruise ship. BT shareholders can save up to £150 per person on a choice of four Fred. Olsen cruises in 2015. There is a variety of exciting destinations, including France, the Norwegian fjords, the Canary Islands and the Azores, and Madeira. To find out what’s available, call 0800 917 0514. Demand is usually very high, so we’re only able to make these offers available for a limited time. To book call 0800 0355 110 quoting GRP0095 and BTSHARE. Relax in style Hayloft Plants Take a few days out from the hustle and bustle of day-to-day life with Warner Leisure Hotels and save up to £350 per break on 2015 rooms. Plus BT shareholders can save an extra £10 per person per break. We’ve teamed up with Hayloft Plants for an exclusive shareholder offer. Save £10 when ordering three Helleborus Niger ‘Christmas Rose’, normally priced at £19.45 now available for just £9.45 plus free postage! Often seen flowering on Christmas Day hence its common name the ‘Christmas Rose’. To book, visit www.warnerleisurehotels.co.uk/bt or call 0800 1 388 399, quoting promotional code PHCBT. Bookings must be made by 31 March 2015. To order call 01386 426 245 or visit www.hayloftplants.co.uk/ROBT15 For more shareholder offers, go to www.bt.com/shareholderoffers 9 Shareholder prize draws We’re delighted to offer all shareholders the chance to enter three prize draws – see details below. All prize draws close on 31 March 2015. 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 things you do every day, like surfing the web, checking email, editing videos and photos, writing reports 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. To enter call 0800 138 5110 or go to www.bt.com/signup Fred. Olsen Cruise BT Tower turns 50! We’re offering one lucky shareholder the opportunity to win a 3-night Amsterdam mini cruise for two on board Fred.Olsen’s Braemar, departing 30 May 2015*. The prize includes accommodation, all meals, port charges and entertainment. This year we’re celebrating the BT Tower’s 50th birthday and one lucky shareholder could win a complete set of BT Tower Golden Jubilee merchandise*. To enter call 0800 138 5110 or go to www.bt.com/signup 10 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 All prize draws close on 31 March 2015. Managing your shares 24/7 View current market information and share prices, update your address and bank details and contact us through secure email by logging on and registering at www.shareview.co.uk Beware of fraudsters We would like to remind shareholders to be very mindful of unsolicited phone calls or correspondence concerning shareholding or investment matters. If you receive any unsolicited investment advice, make sure you record the name of the person, organisation, telephone number, address, etc and check they are properly authorised before you get involved. You can check on the Financial Conduct Authority’s (FCA) website at www.fca.org.uk or call its consumer helpline on 0800 111 6768. If you also tell Equiniti, it will liaise with the FCA and keep BT informed. 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 https://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. (Please include a daytime telephone number.) *calls from outside the UK 11 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. 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. Alternatively, you can complete the payment instruction form attached to your dividend cheque. 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. Go to www.bt.com/signup for more information on e-shareholding and to register your e-shareholder account. BT Group plc www.bt.com Registered office: 81 Newgate Street, London, EC1A 7AJ Registered in England and Wales No. 4190816. PHME: 73186 Design by mslgroup.co.uk Printed in England by DST (Output) Ltd Printed on FSC 130gsm Pavarotti Silk. All you need is your shareholder reference number (from your dividend tax voucher) and your email address. Then update your details to ‘email’ rather than ‘paper’. It couldn’t be easier!