BT 2007 Annual Report Download - page 6

A number of changes to the Board have occurred since I last
wrote to you. Sir Anthony Greener stepped down as Deputy
Chairman and from the Board on 30 September 2006 after six
years and I would like to thank him for his very significant
contribution to the development of our strategy. His successor is
Maarten van den Bergh, who has been a non-executive director
since September 2000. Maarten, who prior to his retirement was
president of the Royal Dutch Petroleum Company, also chairs
the Remuneration Committee and is our senior independent
director. And I’d like to welcome two new directors, Deborah
Lathen and Franc¸ois Barrault. Deborah, who is president of
Washington-based Lathen Consulting, joined the Board as a
non-executive director in February 2007. She brings strong US
business and policy experience to BT, including as a previous
chief of the Cable Services Bureau at the US Federal
Communications Commission. Franc¸ois joined the Board on
24 April 2007 as Chief Executive BT Global Services (in which
role he succeeds Andy Green who became CEO of Group
Strategy and Operations). As President of BT International,
Franc¸ois established a record of exceptional growth in BT’s
operations outside the UK.
................................................................................................................................................
Services that have
transformed our
customers’ idea
of what is possible
................................................................................................................................................
DELIVERING OUR PLAN
I would like to thank shareholders and customers for their
confidence in our strategy and the loyalty they have shown in
the past six years.
I’d also like to thank our Chief Executive, Ben Verwaayen, the
other members of the Board – both executive and non-
executive – and all BT people for their efforts and unwavering
support. If I cannot entirely resist the temptation to look back
over the past six years, it is because that is the best way of
acknowledging what they have achieved.
Back in 2001 your company’s net debt had risen to nearly
£30 billion. In response, in May 2001, your Board put in place
an action plan to reduce debt, manage costs and enhance our
abilities to serve our customers even more effectively. That plan
has been delivered.
Debt was brought under control by a combination of the
largest ever rights issue in UK corporate history and the disposal
of a number of businesses including Yell (our international
directories and e-commerce business) and our interests in Japan
and Spain. O2 (previously Cellnet) was demerged and Concert
(our international joint venture with AT&T) was unwound. These
structural changes have provided commercial and financial
flexibility for the group and our debt in recent years has reduced
to sustainable levels.
We have rigorously managed our costs, taking a disciplined
approach to eliminating waste and duplication, wherever
possible using our own technology to become more cost
effective.
During that period, new technologies have given customers
access to a range of services – high-speed broadband, fixed-
mobile convergence and next-generation TV – that have
transformed their idea of what is possible. Our efforts in UK
broadband and in global networked IT service have been very
successful.
LOOKING FORWARD
Looking ahead, your company is positioned for success. With a
new Chairman and an experienced CEO at the helm, and a
workforce experienced in the business of transformation, the
signs are very positive. It has been a privilege to be involved
with BT’s journey to this point; I shall, of course, continue to
follow its future progress with great interest and pleasure.
Sir Christopher Bland
Chairman
16 May 2007
BT Group plc Annual Report & Form 20-F 5
Overview