BT 2003 Annual Report Download - page 147

Download and view the complete annual report

Please find page 147 of the 2003 BT annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.

Page out of 162

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
  • 9
  • 10
  • 11
  • 12
  • 13
  • 14
  • 15
  • 16
  • 17
  • 18
  • 19
  • 20
  • 21
  • 22
  • 23
  • 24
  • 25
  • 26
  • 27
  • 28
  • 29
  • 30
  • 31
  • 32
  • 33
  • 34
  • 35
  • 36
  • 37
  • 38
  • 39
  • 40
  • 41
  • 42
  • 43
  • 44
  • 45
  • 46
  • 47
  • 48
  • 49
  • 50
  • 51
  • 52
  • 53
  • 54
  • 55
  • 56
  • 57
  • 58
  • 59
  • 60
  • 61
  • 62
  • 63
  • 64
  • 65
  • 66
  • 67
  • 68
  • 69
  • 70
  • 71
  • 72
  • 73
  • 74
  • 75
  • 76
  • 77
  • 78
  • 79
  • 80
  • 81
  • 82
  • 83
  • 84
  • 85
  • 86
  • 87
  • 88
  • 89
  • 90
  • 91
  • 92
  • 93
  • 94
  • 95
  • 96
  • 97
  • 98
  • 99
  • 100
  • 101
  • 102
  • 103
  • 104
  • 105
  • 106
  • 107
  • 108
  • 109
  • 110
  • 111
  • 112
  • 113
  • 114
  • 115
  • 116
  • 117
  • 118
  • 119
  • 120
  • 121
  • 122
  • 123
  • 124
  • 125
  • 126
  • 127
  • 128
  • 129
  • 130
  • 131
  • 132
  • 133
  • 134
  • 135
  • 136
  • 137
  • 138
  • 139
  • 140
  • 141
  • 142
  • 143
  • 144
  • 145
  • 146
  • 147
  • 148
  • 149
  • 150
  • 151
  • 152
  • 153
  • 154
  • 155
  • 156
  • 157
  • 158
  • 159
  • 160
  • 161
  • 162

Total shareholder return
Total shareholder return (TSR) is the measure of the returns that a company has provided for its shareholders,
reflecting share price movements and assuming reinvestment of dividends. It is, therefore, a good indicator of
a company’s overall performance.
Over the last five years (as shown in the TSR chart below), BT initially performed very strongly, but, like many
stocks in the telecoms, media and technology (TMT) sector, suffered falls in its share price during the decline of
the past three years. BT’s TSR (as adjusted for the rights issue and demerger) over the last five years was
negative 63% compared to a FTSE 100 TSR fall of negative 32%. Substantially all of the five-year negative FTSE
performance has occurred over the past year (negative 29%) whereas BT’s TSR in the last 12 months was
negative 43%.
In the period between the demerger on 19 November 2001 and 31 March 2003, BT’s share price was roughly
in line with the European telecommunications sector after outperforming for most of the period. BT and the
European telecommunications sector have both under-performed the FTSE 100 index by around 10% (as shown
in the share price performance chart), over the 16 month period.
BT
FTSE 100
0
50
100
150
200
250
02/0301/0200/0199/0098/99
1 April 1998 = 100. Source: Datastream
The graph shows our TSR performance (adjusted for the rights issue and demerger of our
mobile business in the 2002 financial year) relative to the FTSE 100.
Source: Bloomberg
The graph shows relative price performance of BT and European Telco Sector using the
FTSE 100 as a base.
BT’s total shareholder return (TSR) performance
over five financial years to 31 March 2003
BT and European Telco Sector
Performance vs FTSE 100 since Demerger
(35)
(30)
(25)
(20)
(15)
(10)
(5)
0
5
10
15
BT
European Telco Sector
Nov
2001
Mar
2002
Mar
2003
Results announcements
Expected announcements of results:
1st quarter 31 July 2003
2nd quarter and half year 13 November 2003
3rd quarter and nine months February 2004
4th quarter and full year May 2004
2004 annual report and accounts published June 2004
Individual savings accounts (ISAs)
Information about investing in BT Group shares through an ISA may be obtained from Halifax Share Dealing
Limited, Trinity Road, Halifax, W.Yorkshire HX1 2RG (telephone 0870 242 5588). ISAs are also offered by
other organisations.
ShareGift
The Orr Mackintosh Foundation operates a charity share donation scheme for shareholders with small parcels
of shares whose value makes it uneconomic to sell them. Details of the scheme are available from ShareGift
at www.sharegift.org or telephone 020 7337 0501, or can be obtained from the Shareholder Helpline.
Unclaimed Assets Register
BT is among a growing number of companies who subscribe to the Unclaimed Assets Register, which provides
a search facility for financial assets, such as shareholdings and dividends which have become separated from
their owners. The Register donates a proportion of its public search fees to charity via ShareGift. For further
information on the Unclaimed Assets Register, visit www.uar.co.uk or telephone 0870 241 1713.
Additional information for shareholders
146 BT Annual Report and Form 20-F 2003