BT 2007 Annual Report Download - page 2

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BT is one of the world’s leading
providers of communications
solutions and services operating
in 170 countries.
Our vision is to be dedicated
to helping customers thrive
in a changing world.
Our mission is to be the leader
in delivering converged
networked services.
BT Group plc is a public limited company registered in England and Wales and listed on the London and New York stock
exchanges. It was incorporated in England and Wales on 30 March 2001 as Newgate Telecommunications Limited with the
registered number 4190816. Its registered office address is 81 Newgate Street, London EC1A 7AJ. The company changed its name
to BT Group plc on 11 September 2001. Following the demerger of O2 in November 2001, the continuing activities of BT were
transferred to BT Group plc.
British Telecommunications plc is a wholly-owned subsidiary of BT Group plc and encompasses virtually all the businesses and
assets of the BT group. The successor to the statutory corporation British Telecommunications, it was incorporated in England and
Wales as a public limited company, wholly owned by the UK Government, as a result of the Telecommunications Act 1984.
Between November 1984 and July 1993, the UK Government sold all of its shareholding in British Telecommunications plc in three
public offerings.
This is the annual report for the year ended 31 March 2007. It complies with UK regulations and is the annual report on Form
20-F for the US 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 notice of
meeting (including summary financial statements) for the year ended 31 March 2007 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 ‘2007 financial year’ refers to the year
ended 31 March 2007. Unless otherwise stated, all non financial statistics are at 31 March 2007.
Please see cautionary statement regarding forward-looking statements on page 158.
A number of measures quoted in this annual report are ‘non GAAP’ measures. These include EBITDA and profit before specific
items, earnings per share before specific items, net debt and free cash flow. The rationale for using non GAAP measures and
reconciliations to the most directly comparable IFRS indicator are provided on pages 30, 34-35, 44, 78, 100, 101 and 102.
BT Group plc Annual Report & Form 20-F
Overview
2 BT at a glance
4 Chairman’s message
6 Chief Executive’s statement
Report of the Directors
9 Business review
30 Financial review
49 Corporate governance
Financial statements
74 Statement of directors’
responsibility
75 Report of the independent auditors
77 Consolidated financial statements
143 Glossary of terms and US equivalents
144 Report of the independent auditors –
parent company
145 Financial statements of BT Group plc
148 Subsidiary undertakings and associate
149 Quarterly analysis of revenue
and profit
150 Selected financial data
154 Financial statistics
156 Operational statistics
Shareholder information
158 Additional information
for shareholders
169 Cross reference to Form 20-F
172 Glossary of terms
174 BT products and services mentioned
in this report
175 Index