BT 2004 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 operators.
Contents
Financial headlines 2
Chairman’s message 3
Chief Executive’s statement 4
Operating and financial review 6
Business review 6
Five-year financial summary 24
Financial review 26
Our commitment to society 47
Board of directors and Operating Committee 49
Report of the directors 51
Corporate governance 52
Report on directors’ remuneration 58
Statement of directors’ responsibility 72
Report of the independent auditors 73
Consolidated financial statements 74
United States Generally Accepted Accounting Principles 124
Subsidiary undertakings, joint ventures and associates 134
Quarterly analysis of turnover and profit 135
Financial statistics 136
Operational statistics 137
Risk factors 138
Additional information for shareholders 140
Glossary of terms and US equivalents 154
Cross reference to Form 20-F 155
Index 158
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 2004. 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 2004 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, eg the ‘‘2004 financial year’’ refers to the year
ended 31 March 2004. Unless otherwise stated, all non-financial statistics are at 31 March 2004.
Please see cautionary statement regarding forward-looking statements on page 141.
BT was incorporated in England and Wales on 30 March 2001 as Newgate Telecommunications Limited with the registered number
4190816. The company changed its name to BT Group plc on 11 September 2001. Following the demerger of mmO
2
in November
2001, the continuing activities of BT were transferred to BT Group.
BT Group’s registered office address is 81 Newgate Street, London EC1A 7AJ.