BT 2007 Annual Report Download - page 5

I am delighted to report that our proposed full year dividend is
15.1 pence per share, 27% higher than last year, moving to a
two-thirds pay out ratio a year earlier than we had previously
announced. We expect to increase the dividend, taking into
account our earnings growth, cash generation and our ongoing
investment needs. In addition, because of the financial strength
of the company we are introducing a new £2.5 billion share buy
back programme which we expect to be completed by
31 March 2009.
BUSINESS PROGRESS
We continued to implement our strategy for profitable growth.
New wave revenue now accounts for 36% of our total business.
We are a major player in the global networked IT services
market, meeting the needs of our customers around the world.
In the UK, we have around 11 million broadband lines over
which we are able to offer all our customers – consumer, SME,
corporate and wholesale – a more accessible, faster and richer
broadband experience.
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We are committed to
operating in an ethical,
sustainable and socially
responsible way
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OUR WIDER RESPONSIBILITIES
I am extremely proud of the fact that, for the sixth consecutive
year, BT was the highest placed telecommunications company in
the Dow Jones Sustainability Index. We are committed to
operating in an ethical, sustainable and socially responsible way,
and to having a positive impact on all those communities whose
lives we touch.
As the corporate social responsibility agenda evolves, so does
our strategy. We are, for example, increasingly emphasising
three new priorities:
stackling climate change. We are committed to cutting our
CO
2
emissions by 80% from 1996 levels by 2016 and to
helping customers and suppliers cut theirs through the more
effective use of communications technology. The fact that our
Chief Executive, Ben Verwaayen, is chairing the CBI’s climate
change task force indicates how seriously we take this issue.
senabling sustainable economic growth. We are increasingly
integrating sustainability in all our business processes.
shelping to build a more inclusive society. We are looking at
the ways in which communications technology can help to
build a fairer, more inclusive society.
PENSIONS
Investment performance on assets in the BT Pension Scheme
(BTPS) was very good, with year end value at a record
£38 billion. During the year, BT and the trustees of BTPS agreed
the triennial funding of the scheme. Under a new and more
conservative actuarial methodology, the deficit at 31 December
2005 was calculated as £3.4 billion.
BT has agreed to make deficit payments equivalent to
£280 million a year for ten years, with the first three years’
instalments paid up front – £840 million was paid into the
scheme by 30 April 2007. I believe this is a fair and prudent
deal for pensioners and shareholders, and demonstrates that
your company stands fully behind its pension obligations.
YOUR BOARD
I will be stepping down as Chairman in the autumn after more
than six challenging and fascinating years with BT. Sir Mike Rake
will take over as your next Chairman in September. Mike is
currently chairman of KPMG International; he has demonstrated
outstanding leadership of this major global organisation during a
time of turbulence and change. He will bring extensive
international experience to BT as it continues to position itself as
a truly global company.
Overview
Chairman’s message
4BT Group plc Annual Report & Form 20-F
The 2007 financial year was a very good one for your company
– our results once again were excellent. Revenue grew by 4%
and earnings per share before specific items grew by 16% to
22.7 pence. We continued to invest in technologies, networks
and systems that will, we believe, transform our customers’ lives
and businesses, along with their experience of dealing with BT.
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