May 2014
Shareholder
Exclusive
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Chairman’s message
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Shareholder offers
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E-shareholder info
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Our investment in
fibre broadband is
transforming lives.
As a result of our strong performance this year, the
Board is proposing a final dividend of 7.5p, up 15%.
This gives a full year dividend of 10.9p, also up 15%.
We remain committed to paying progressive dividends
to our shareholders and expect dividends to grow by
10%-15% for each of the next two years.
We have continued to invest in the long-term health of
our business. We have brought fibre broadband in reach
of more than 19m UK premises – around two thirds of the
country. Our rollout is well ahead of our original target and
we are now rapidly expanding into rural areas as part of the
Broadband Delivery UK programme.
We successfully launched BT Sport in the year. We are
making premium sports content widely available at
significantly lower prices than previously provided in the
market. Nine months on from launch, we have around
3m direct BT Sport customers and with our wholesale
deals, it is now in around 5m homes.
You can read full details of our performance in
our Annual Report & Form 20-F 2014 online
at www.bt.com/annualreport
We enclose your AGM admission card/proxy card.
Your votes are important to us, so if you are not able
to come to the AGM, please use the proxy card to send
us your voting instructions. If you are coming to the
AGM, please bring the admission card with you to help
with identification and keep it until the end of the
meeting to vote.
Our goal is to deliver sustainable, profitable revenue
growth supported by the investments we are making.
We made notable progress towards this goal in the year.
I am confident BT will make further progress in the period
to come, delivering long-term value for our shareholders.
2
adjustedb
adjustedb
£m
13,500
2,400
13,000
2,300
2,292
2,100
2,307
2,200
2,000
2012
12,000
2013
2014
2013
2014
1%
0%
5%
7%
reported
normalised c
Adjusted earnings per shareb
Year ended 31 March
2014
2013
12,500
28.2p
26.3p
7%
a Certain results for the years ending 31 March 2013 and 2012 have been restated.
b Items presented as adjusted are stated before specific items.
11,500
11,000
6,116
2013
2014
1%
2%
1%
0%
13,363
£m
2,500
13,126
Operating costsd
Year ended 31 March
2,450
Free cash flow
Year ended 31 March
2,300
5,840
5,791
reported
2012a
reported
adjustedb
12,171
1%
0%
2014
12,447
2014
5%
5%
2013a
12,312
2013
2012a
12,196
2014
reported
Change
Sir Michael Rake
Chairman
7 May 2014
2013a
2,171
This has been an important year for BT. Our investments
are delivering and contributed to a strong set of results.
While our customer service improved this year, it was
not good enough. This was partly because our resources
were stretched by the widespread flooding across the UK
and the strong demand for BT Sport. We are making our
networks more resilient, recruiting more engineers and
contact centre agents and investing to improve our systems
and processes. We need to deliver a step-change to provide
a superior service to all our customers.
2012a
2,318
The investments we are
making are delivering – for both
BT and the UK
17,000
18,287
17,500
Our Notice of meeting 2014
together with our Annual Report
& Form 20-F 2014 are now
available on our website at
www.bt.com/annualreport
18,287
18,000
18,339
18,500
18,103
19,000
6,143
£m
6,200
6,100
6,000
5,900
5,800
5,700
5,600
6,034
£m
19,500
5,861
EBITDA
Year ended 31 March
19,397
Revenue
Year ended 31 March
18,987
A message from
your Chairman
Financial highlights 2013/14
2013a
2014
2013
2014
6%
9%
1%
0%
Proposed full year dividend
Year ended 31 March
2014
2013
Change
10.9p
9.5p
15%
c Before specific items, purchases of telecommunication licenses, pension deficit
payments and the cash tax benefit of pension deficit payments.
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d Before depreciation and amortisation.
Shareholder prize
draw and offers
BT Shop
Fred. Olsen Cruise
The BT Shop has some very special shareholder offers.
Save up to 40% on the BT Aura 1500 Range, for
instance, or £40 off the new BT Home SmartPhone S.
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 for a limited period.
There’s no better way to travel the world than on a
cruise ship. BT shareholders can save up to 25% on a
choice of four European Fred. Olsen Cruises in 2014.
To book call 0800 0355 150 quoting GRP0095 and
promotion code BTSHARE. Bookings must be made
by 30 June 2014. Visit www.fredolsencruises.com
for more information.
Holiday Extras
Warner Hotels
Holiday Extras is the market leader for discounted
airport parking, airport hotels, travel insurance and
for adding other elements to the holiday to make
travel easier. BT shareholders can save up to 20%
on airport add-ons. Simply call 0800 083 8746
and quote the code WC926.
BT shareholders can save up to 50% on hundreds
of rooms at Warner Leisure Hotels and an extra £20
per person on all Warner Leisure breaks. If you think
you deserve time out from the hustle and bustle of
day-to-day life and want to relax in style, then call
0800 1 388 399 any time before 31 July 2014,
quoting the code PHCBT.
Enter our prize draw to win a Lenovo 15" laptop with
Windows 8 and 500GB capacity*. To enter, simply call
0800 138 5110 or go to www.bt.com/signup
We’re giving all shareholders a chance to win a Lenovo
15" laptop, offering a perfect blend of professional style,
performance and security*.
With an HD display, AccuType keyboard, enhanced
graphics, integrated webcam and dual stereo speakers,
it’s great for handling your everyday computing needs.
*For the laptop prize draw terms and conditions
call 0800 138 5110 or go to www.bt.com/signup
Prize draw closes on 31 July 2014
For more shareholder offers,
go to www.bt.com/shareholderoffers
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Become an
e-shareholder for
a chance to win
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. We’re offering anyone who signs
up to become an e-shareholder by 31 July 2014 a chance to
win some great prizes.
Tickets to a top London venue
Become an e-shareholder and you could win a pair
of tickets to a top London venue.
We’ve got eight pairs of tickets and the prize includes
hospitality and seats in a shared VIP box*.
How do I sign up?
Step one
iPad mini
Naked Wines
Relaxing break
Win a new, Space Grey 16GB iPad mini.
Thin, light and wi-fi enabled, it’s one of the
very best tablets around*.
All new e-shareholders will automatically receive a
£30 credit with Naked Wines when you order a six
or 12-bottle case of wine.
Win a three-night weekend break for two people at
one of Warner Leisure’s historic house hotels.
Register online at www.bt.com/signup
or scan the QR code and give us
your email address and add your
shareholder reference number
from your AGM proxy card.
Step two
Look out for your activation code
in the post. When you receive it,
add your bank or building society
details online.
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What’s more, all new e-shareholders will be entered
into a prize draw to win a six-bottle case of
Moutard Champagne*.
Receive half board accommodation in an upgraded
Signature style room, enjoy live entertainment each
night and make use of the sport and leisure facilities*.
*To enter, sign-up and become an e-shareholder. For terms and conditions for all e-shareholder prize draws go to
www.bt.com/signup All prize draws close on 31 July 2014.
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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.
*calls from outside the UK
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.
If it sounds too good to be true, it probably is.
You can check on the Financial Conduct Authority’s (FCA) website at
www.fca.org.uk or call their consumer helpline on 0800 111 6768.
If you also tell Equiniti, they will liaise with the FCA and keep BT informed.
BT Group plc
www.bt.com
Registered office: 81 Newgate Street, London EC1A 7AJ
Registered in England and Wales No. 4190816.
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