BT 2003 Annual Report Download - page 2

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BT is one of Europe’s leading providers of telecommunications services. Its
principal activities include local, national and international telecommunications
services, higher-value broadband and internet products and services, and IT
solutions. In the UK, BT serves over 20 million business and residential
customers with more than 29 million exchange lines, as well as providing
network services to other licensed operators.
Contents
Financial headlines 3
Chairman’s message 4
Chief Executive’s statement 6
Business review 8
Our commitment to society 24
Five-year financial summary 26
Financial review 28
Board of directors and Operating Committee 50
Report of the directors 52
Corporate governance 53
Report on directors’ remuneration 58
Statement of directors’ responsibility 73
Report of the independent auditors 74
Consolidated financial statements 75
United States Generally Accepted Accounting Principles 127
Subsidiary undertakings, joint ventures and associates 135
Quarterly analysis of turnover and profit 136
Financial statistics 138
Operational statistics 139
Risk factors 140
Additional information for shareholders 141
Glossary of terms and US equivalents 156
Cross reference to Form 20-F 157
Index 160
BT Group plc is a public limited company registered in England and Wales, with listings on the London and New York stock exchanges.
This is the annual report for the year ended 31 March 2003. It complies with UK regulations and is the annual report on Form 20-F
for the Securities and Exchange Commission to meet US regulations.
This annual report has been sent to shareholders who have elected to receive a copy. A separate annual review and summary
financial statement for the year ended 31 March 2003 has been issued to all shareholders.
In this annual report, references to ‘‘BT Group’’, ‘‘BT’’, ‘‘the group’’, ‘‘the company’’, ‘‘we’’ or ‘‘our’’ are to BT Group plc (which
includes the continuing activities of British Telecommunications plc) and its subsidiaries and lines of business, or any of them as the
context may require.
References to the ‘‘financial year’’ are to the year ended 31 March of each year, e.g. the ‘‘2003 financial year’’ refers to the year
ended 31 March 2003. Unless otherwise stated, all non-financial statistics are at 31 March 2003.
Please see cautionary statement regarding forward-looking statements on page 142.
BT Annual Report and Form 20-F 2003 1