September
2012
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Shareholder
Exclusive
Chairman’s message Page 2
E-shareholder info Page 4
Our London 2012
achievement Page 6
Great offers Page 8
Chief Executive’s
review Page 10
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Alistair Brownlee,
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A message from
your Chairman
I was delighted to see so many shareholders
in London for this year’s AGM.
At the meeting, I reported that we have
had another year of real delivery for all our
stakeholders, despite the economic headwinds
and uncertainty. We have continued to invest
in the business, including our £2.5 billion fibre
rollout programme, which is one of the largest
private sector commitments in the world. This
investment is taking fibre-based broadband to
cities, towns and rural areas, bringing significant
economic benefit to the UK. We also continue to
invest in new products, including Premier League
football broadcast rights, and improving our
service levels.
Our investment is not just in the UK. BT is a
leading provider of network services to global
corporations and we have built on this by
expanding into faster growth economies,
creating both exports and jobs for the UK
economy. We have agreed the 2011 pension
funding valuation and recovery plan with the
Trustee, as well as contributing a £2 billion lump
sum into the scheme, more than half the total
deficit, thus giving greater certainty to the
fund, to our pensioners and to our shareholders.
We have also improved our credit rating and
increased dividends for our shareholders.
As I said at the AGM, we believe that we have a
real responsibility to give something back to the
communities in which we operate. We make a
reality of this ideal through our various charitable,
environmental and energy savings programmes.
And, of course, we are proud sponsors of the
London 2012 Olympic and Paralympic Games.
We helped make them the most connected
Games ever, with over 80,000 connections
across 94 locations.
2
Alistair & Jonathan Brownlee,
Olympic medallists and BT ambassadors
I am pleased to report that shareholders at the
AGM approved a final dividend of 5.7 pence
(up 14%), meaning a 12% increase in the full year
dividend to 8.3 pence. You will find full details
of the AGM, including the voting results, online
at www.bt.com/forward
While our aim remains to drive profitable revenue
growth, the challenging environment we are
facing makes this more difficult, but we believe our
strategy will continue to deliver long-term value
for our shareholders.
Sir Michael Rake
Chairman
We helped make London 2012 the most
connected Games ever, with over 80,000
connections across 94 locations.
Oscar Pistorius, Olympic
athlete and BT ambassador
3
Become an e-shareholder
in two easy steps...
As an e-shareholder you receive your shareholder communications electronically
and have dividends paid directly into your bank or building society account.
1. Register your
e-shareholder
account
All you need is your
Shareholder reference
number (from your
dividend voucher) and
your email address. Go to
www.btplc.com/signup
2. Choose direct
dividend payment
Fill in the form attached to
your dividend form. Once
you have received your
activation code in the post,
just add your bank account
details online. Simple!
4
Sign up by
31 October 2012
and you could win
a VIP trip up the
BT Tower.*
Become an e-shareholder and be automatically
entered into a free prize draw to win one of
250 trips for two people to the top of the
BT Tower. To be an e-shareholder you must
have your dividend paid directly to your bank
or building society account and have signed up
for e-communication.
Sign up at www.btplc.com/signup
* Terms and conditions for the prize draw can be found at
www.btplc.com/signup
...and you could
be a winner
£10 off
BT Shop will provide all new e-shareholders with
a £10 voucher to spend against BT phones over
the value of £50.*
Win two nights in a
Country House hotel
Simply sign up as an e-shareholder by
31 October 2012 and you’ll automatically be
entered into a free prize draw to win a two-night
break courtesy of Hand Picked Hotels.*
The prize includes:
• accommodation with breakfast for two nights
in an executive bedroom
• pre-dinner glass of Champagne and canapés
on one night
* Terms and conditions for the BT Shop offer can be found at
www.bt.com/shop/eshareholder
Save £60
Every new e-shareholder registration will receive
a £60 voucher to spend at Naked Wines, valid
against your first order of £99.99 or more.*
• three course table d’hôte dinner on one night
• full traditional breakfast both mornings
* Terms and conditions for the Hand Picked Hotels prize draw can be
found at www.btplc.com/signup
* Terms and conditions for the Naked Wines voucher can be
found at www.btplc.com/signup
5
Our London 2012
achievement
1,000,000
Man hours
60Gb
Peak capacity of our network, the
equivalent to an entire Wikipedia
encyclopedia every five seconds
1,550
Wireless access points
80,000
As official communications services
partner for London 2012, we installed
infrastructure at 94 Olympic and
Paralympic locations, helping bring
the contests to the world. In the era of
social media and the smartphone, we
helped to make London 2012 the
most connected Games ever.
Being part of the
Olympic Stadium
on such a special
evening was
truly amazing,
and we enjoyed
every minute.
Connections across 94 locations
850+
Lin Merrick
BT shareholder and prize
draw winner May 2012
People on the ground at Games time
6
7
Take advantage of
our online offers...
Gourmet Society
GN Holidays
With the Gourmet Society dining card you can enjoy
a year’s worth of restaurant savings at the betterthan-half-price rate of just £29.95 (RRP £69.95).
Enjoy a fun-packed cruise, taking in Bruges,
Ghent, Ostend and an array of fabulous
Christmas markets.
ATG tickets
Hand Picked Hotels
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.
Enjoy a minimum saving of 15% on one or
two night breaks with the award-winning
Hand Picked Hotels.
For more of our great offers go to www.btplc.com/offers
8
...and enter our prize draw
to win this great bundle
Samsung N102SB
10.1 Netbook
BullGuard Internet
Security Software
8GB USB
Flash Drive
Go to btplc.com/signup to enter. The prize draw closes on 31 October 2012
9
Chief Executive’s
review
As many of you will have read, our latest
quarterly financial results (published on
25 July 2012) showed that we have delivered
another quarter of profit growth and the 11th
consecutive quarter of double-digit earnings
per share growth, although quarterly cash flow
was impacted by the timing of working capital
movements.
Our fibre roll-out is one of the biggest
engineering projects the UK has ever seen. Our
engineers are rolling out fibre at pace, bringing
fibre broadband to over 2m more homes and
businesses in the quarter and it’s now available
to over 11m premises. Our investment plans are
creating around 2,000 jobs in 2012 as we recruit
engineers to support our fibre plans and open
four new UK call centres.
Our fibre roll-out is
one of the biggest
engineering projects
the UK has ever seen.
We remain the leading provider of broadband
in the UK and added 85,000 retail broadband
customers in the quarter, representing 50% of
the DSL, LLU and fibre broadband market net
additions. BT Retail’s fibre broadband customer
base now stands at more than 700,000. In
BT Global Services revenue was impacted by
10
the tough conditions in Europe and the financial
services sector. We continue to intensify our
efforts to transform our cost base by driving
further material improvements in processes and
service and in network and systems rationalisation.
Despite the worst UK summer weather for over
100 years, our Openreach engineers have been
pulling out all the stops to deal with the extremely
high fault rates.
We are making progress. Our investments are
showing encouraging signs and we are becoming
a better and more efficient business. However,
the tough economic conditions reinforce the need
to do more and as a management team we know
there is more to do right across our business.
Ian Livingston
Chief Executive
We are making progress. Our investments
are showing encouraging signs and we are
becoming a better and more efficient business.
2m
Fibre broadband now
available to over 11m premises
Brought fibre broadband to over
2m more premises in the quarter
YouView
10%
Earnings per share
1 before specific items
1
1
Bundled YouView service to
launch in autumn 2012
11
Contact information
Shareholder helpline
For general enquiries call:
Freefone:
Online
Information on how to manage your
shareholdings can be found at
0808 100 4141 (+44 121 415 7178)*
https://help.shareview.co.uk
Textphone:
If your question is not answered by
the information provided you can
send your enquiry via secure email
from these pages.
0800 169 6907 (+44 121 415 7028)*
*calls from outside the UK
Post
Equiniti, Aspect House,
Spencer Road, Lancing, West Sussex,
BN99 6DA, United Kingdom
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BT Group plc
www.bt.com
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