BT 2015 Annual Report Download - page 90

88 BT Group plc
Annual Report 2015
Capital expenditure
e are ain sinificant investents in our strateic rowth areas and
to iprove our custoer service.  continuin to transfor and drive
eciencies within our capital proraes we have been able to invest in
our rowth strate without increasin our overall capital ependiture.
ur capital ependiture net of rant fundin was  011
. e have shown below how this was applied across our aor
capital proraes.
20142013 2015
£m
Capital expenditurea
Year ended 31 March
Customer capex
Fibre capex
Network capex
Broadband capex Support/Other capex
0
500
1,000
1,500
2,000
2,500
a Excludes purchases of telecommunications licences.
ur capital ependiture in recent ears has focused on underpinnin
our rowth strate and in particular on epandin and enhancin our
net eneration access networ which includes both fibre and thernet.
noin investents this ear to support our strate include
 increasin the footprint of our fibre broadband networ includin
etendin the reach of fibre to rural areas under the UK
prorae. e have now passed ore than  hoes and
businesses representin over three-uarters of UK preises
 continuin to build our  capabilities includin Ultra-ih efinition
and  verwhere as well as enhancin our content distribution
networ
 developin our capabilities and propositions for obilit and uture
oice to eploit the converence of fied and obile services
 epansion of our net eneration networs includin epandin
capacit on our  chane platfor
 continued developent of custoer contract-specific infrastructure
for our lobal clients and
 iprovin custoer eperience b developin new sstes and
replacin eleents of our networ to reduce faults and speed up
repairties.
e reconised rant fundin of 9 011 1
ainlrelatin to our capital activit on the UK prorae.
f our total capital ependiture 1 011 9 arose
outside the UK. apital ependiture contracted but not et incurred
was0 at 1 arch 01 011 00.
Depreciation and amortisation
epreciation and aortisation reduced  to  due to
lower capital ependiture in recent ears as we have becoe ore
ecient in deliverin our capital investent proraes. ur software
developent costs have reduced historicall and soe of our previous
networ investents becae full depreciated in 011 both of
which added to the overall reduction in depreciation and aortisation.
Balance sheet
Summarised balance sheet
ur balance sheet reects our sinificant investent in the networ
infrastructure assets that are the foundation of our business as well
as the worin capital with which we anae our business da b da.
talso reects the loner-ter fundin strate with which we finance
our investents and our obliation to the pension fund.
t 1 arch
2015

01

oveent

ropert plant  euipent
software and telecos licences 11 1 09
oodwill  other acuisition
related intangible assets 19 10 
ther non-current  current assets 1 1000 
rade  other receivables  11 0
nvestents cash  cash
euivalents 9 9 1
Total assetsa25,710 23,517 2,193
oans  other borrowins 9 91 
rade  other paables  1 1
ther current  non-current liabilities  01 1
rovisions   1
eferred ta liabilit 9 9 119
ensions net of deferred ta 10 1 1
Total liabilities (24,902) (24,109) (793)
7RWDOHTXLW\GHƬFLW 808 (592) 1,400
a([FOXGLQJGHIHUUHGWD[DVVHWUHODWLQJWRWKH%73HQVLRQ6FKHPH
ur core networ infrastructure is included within propert plant and
euipent software and telecounications licences. his is the
bacbone of the UK telecos industr and a sinificant core asset for
our business. hese assets were held at a net boo value of 1.bn
at 1 arch 01. he net reduction of 09 in the ear priaril
reects the related depreciation and aortisation chare of 
eceedin capital ependiture of .
oodwill and other acuisition-related intanible assets increased b
 priaril reectin the ipact of forein echane translation
of overseas non-current assets. e review the recoverable aounts
of oodwill annuall across  lobal ervices  usiness and 
onsuer the three cash eneratin units which hold oodwill
andaresatisfied that these support its carrin value see note 1.
ther non-current and current assets and liabilities relate priaril to
our financial instruents which we have described in note  to the
consolidated financial stateents.
rade and other receivables increased b 0 to  while
trade and other paables of  were 1 hiher contributin
to the worin capital outow in the ear. or ore details see our cash
ow section on pae .
nvestents cash and cash euivalents loans and other borrowins
are reconciled to net debt of 119 in note  to the consolidated
financial stateents. e have discussed net debt on pae .
rovisions increased b 1 to . e have a sinificant propert
portfolio which includes both oce buildins and forer telephone
echanes see pae . nerous lease provisions aounted to 1.
e have shown deferred ta oveents in note 9 to the consolidated
financial stateents. ensions net of deferred ta increased b 0.bn
to .1bn and are discussed below.
n ebruar 01 the copan issued  ordinar shares for 1.0bn
in conteplation of our proposed acuisition of . his is reected in
the iproveent in euit of the roup at 1 arch 01 copared
with the prior ear.