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Shareholder

Exclusive

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Chairman’s message

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Financial highlights

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E-shareholder info

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BT at the heart of sport

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Great offers

May 2013

Fantastic offers and inside

Our AGM will be held in E dinburgh on Wednesday

17 July 2013

Jake Humphrey, Clare Balding and Rio Ferdinand

BT Sport presenters, 2013

A message from your Chairman

We are making long-term investments in our future, and that of the UK.

Shareholder returns

Dividend per share

+12%

+7%

+14%

This year’s Summary financial statement & notice of meeting together with our Annual

Report & Form 20-F 2013 are now available on our website at www.btplc.com/annualreport

The last financial year saw your company continue to perform strongly on many measures, enabling us to again deliver our objective of paying sustainable and progressive dividends. For

2012/13, the Board is proposing a final dividend of 6.5p, up 14%.

This gives a full year dividend of

9.5p, also up 14%, reflecting our performance this year. We expect dividends to grow by 10% to 15% per year for the next two years.

We continue the important work of upgrading the UK’s broadband infrastructure. I am proud of the fact that we recently passed an important milestone when our engineers’ record-breaking deployment saw fibre broadband made available to 15 million homes and businesses – more than half of all UK premises. We remain on course to pass around 19 million premises (two thirds of the UK’s total) by the end of spring 2014, around 18 months ahead of our

+10–15%

+10–15% original schedule. We continue to bid for and win funds made available by government so that the deployment can go yet further – into areas where it would otherwise be unprofitable to invest.

And our BT Sport TV channels are due to launch shortly offering content that will include the very best rugby, some of the most thrilling Premier League football matches and live women’s tennis.

More details can be found at

www.btsport.com where you can also register your interest.

You can read the full details of our performance in our Annual Report

& Form 20-F 2013 online at www.btplc.com/annualreport

We enclose your AGM admission card/proxy card. Your votes are important to us, and if you’re not coming to the AGM, please use the proxy card to send us your voting instructions. If you’re coming to the AGM, please bring the admission card with you to help with identification and keep it until the end of the AGM to vote.

Our aim remains to drive profitable revenue growth. The investments we are making will support this ambition. We believe we have the right strategy to deliver long-term value for all our shareholders. We’ll continue to keep you regularly informed of how we are doing, both online and through our dividend mailings.

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2009/10 2010/11 2011/12 2012/13 2013/14 2014/15

Sir Michael Rake

Chairman

9 May 2013

Financial highlights

2012/13

Revenue

Year ended 31 March

£bn

20.5

19.0

17.5

16.0

14.5

reported adjusteda

2011 2012

2012

6%

4%

2013

2013

5%

5%

11.0

9.0

7.0

5.0

Operating costs c

Year ended 31 March

£bn

15.0

13.0

2011 2012

2012

6%

2013

2013

9%

EBITDA

Year ended 31 March

£bn

6.2

5.8

5.4

5.0

4.6

reported adjusteda

2011 2012

2012

6%

3%

2013

2013

1%

2%

Adjusted earnings per share a

Year ended 31 March

2013

26.6p

2012

Change

23.7p

12%

Free cash flow

Year ended 31 March

£bn

2.5

2.0

1.5

1.0

0.5

0

2011 reported normalisedb

2012

2012

15%

11%

2013

2013

1%

0%

Proposed full year dividend

Year ended 31 March

2013

9.5p

2012

Change

8.3p

14% a Items presented as adjusted are stated before specific items.

b Before specific items, purchases of telecommunications licences, pension deficit payments and the cash tax benefits of pension deficit payments.

c Before depreciation and amortisation and specific items.

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Become an e-shareholder and you could win one of our great prizes

You’ll receive shareholder communications electronically and have dividends paid direct to your bank or building society account.

Sign up

4

Become an e-shareholder in two easy steps

1. Register your e-shareholder account

Go to: www.btplc.com/signup

All you need is your Shareholder reference number and your email address.

2. Choose direct dividend payment

When you receive your activation code in the post, just add your bank or building society account details online. Simple!

A six bottle case of Moutard

Champagne

*

£30

Free voucher

Register as an e-shareholder and receive a

£30 credit to spend against an order of a

6 or 12 bottle case of wine with Naked Wines.

What’s more, all new e-shareholders will also be entered into a free prize draw to win a 6 bottle case of Moutard Champagne.

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 six pairs of tickets and the prize includes hospitality and a shared box.

Get your hands on a new touch screen tablet PC

*

A three night break away with Warner

Leisure Hotels

*

All new e-shareholders will also be entered into our free prize draw to win a 7” Scroll tablet PC

– a touch screen tablet PC designed for use both at home and on the move.

Sign up as an e-shareholder and be entered into our free prize draw and you could win a fabulous break at one of Warner’s Country hotels.

Great value half board breaks with all this included:

• 13 locations to choose from

• Stylish rooms

• Breakfast and delicious three course evening meals

• Daytime activities & facilities

• A variety of entertainment and dancing every evening

* To enter and for terms and conditions of all e-shareholder prize draws go to www.btplc.com/signup

All prize draws close on 31 July 2013.

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BT at the heart of sport

BT and sport are a natural fit.

BT plays a fundamental role at the heart of the UK.

Sport is for everyone, everywhere. And increasingly, the true values of sport are central to what BT stands for – connection, inclusion and community.

London 2012 was a great example of how the inspirational power of sport can bring us all together.

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BT was the most recognised domestic sponsor of London

2012, according to official

Nielsen research. BT was also voted as providing the “greatest corporate contribution” to the success of the Games

2016

BT is supporting the

British Paralympic team all the way to Rio 2016

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Multi-sensory rooms created in special needs schools through our partnership with

Lord’s Taverners, the UK’s leading youth cricket and sports disability charity

20,000 spectators on the streets of

Manchester to watch the 2013

BT Great CityGames for free

10,000 events at grassroots sports clubs and community groups providing volunteering opportunities through the BT sponsored Join In campaign this summer – part of our commitment to continue the

London 2012 legacy

Interested in volunteering? Join In!

Join In is a new national charity for volunteers, following the extraordinary success of the

Games Makers at London 2012.

For more details of the volunteering opportunities through Join In, visit www.joininuk.org

Five pairs of tickets are up for grabs for Join In’s fantastic

‘Go Local’ event on Friday 19th July on the Queen Elizabeth

Olympic Park. Enter our prize draw * for a memorable day of music, entertainment and special guests.

* Go to www.btplc.com/signup to enter. The prize draw closes on 30 June 2013.

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GREAT SPORT HAPPENS HERE

BT’s aim is to increase the number of customers enjoying high-quality sports on TV.

BT’s sport channels will launch in August 2013, showing live and exclusive sporting action including

Barclays Premier League football, Aviva Premiership rugby, coverage of Women’s Tennis Association (WTA) tournaments and Moto GP.

BT Sport will be engaging, approachable and inclusive and will actively support women’s sport.

38 live Premier League games

BT Sport will be showing, starting next season

12.45pm

kick-off time for the first game of the 2013/14 Premier League season on Saturday August

17th, live on BT Sport

NOW, WITH BT BROADBAND,

YOU CAN GET BT SPORT FOR FREE

THE BT SPORT PACK IS FREE FOR ALL

BT BROADBAND CUSTOMERS AND

COMES WITH THREE GREAT CHANNELS.

To gain EXCLUSIVE access to the biggest live games and the biggest names, sign up for BT Sport today at: www.btsport.com or call 0800 400 440

If you order BT Sport before the 1st August 2013, you also get free HD on TV for a year.

For all the latest news as we head to our launch this summer, follow @BTSport on Twitter.

21 global tournaments from the Women’s Tennis

Association (WTA), all on BT Sport

69 live rugby matches from the Aviva Premiership where BT will be the sole and exclusive broadcaster

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Great offers and a prize draw for

BT shareholders

Enter our prize draw

*

to win this great bundle:

Fujitsu AH512 laptop & 4GB Buffalo USB drive

* The prize draw closes on 31 July 2013. Go to www.btplc.com/signup to enter.

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Exclusive offers on the latest technology

Private medical insurance

Available for BT shareholders at the BT Shop.

Hurry, they’re only available for a limited time!

Visit www.bt.com/shop/shareholder or call 0800 917 0514.

Tickets to some of the best shows in town

Private medical insurance from AXA PPP healthcare – providing you with support when you need it.

Warner Leisure

Hotels. Just for grown-ups

*

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.

Take advantage of our BT Shareholder Offer and save up to 50% * on selected 3 & 4 night breaks PLUS save an EXTRA £10 off per person.

To book call: 0800 1 388 399 or visit

warnerleisurehotels.co.uk/phc quoting ref 87PHC.

This offer ends 24 June 2013.

For more of our great offers go to www.bt.com/shareholderoffers

* For terms and conditions go to www.bt.com/shareholderoffers

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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

*calls from outside the UK

Online

You can find information on how to manage your shareholdings at

https://help.shareview.co.uk

If your question is not answered by the information provided, you can send your enquiry via secure email from these pages.

Post

Equiniti, Aspect House,

Spencer Road, Lancing,

West Sussex, BN99 6DA,

United Kingdom

(Please include a daytime telephone number.)

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 registering and logging on 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 your 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.

PHME: 67067

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