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Table of contents

  • Page 1
    ... information Additional information Financial statements Financial statements Strategy Governance Governance Overview Performance Performance Strategy Use the document controls located in the top right corner to help you navigate through this report. Business Business Overview Overview

  • Page 2
    BT Group plc Annual Report & Form 20-F 2012 Additional information Financial statements Governance Performance Strategy Business Overview Overview

  • Page 3
    ...'BT Group', 'BT', 'the group', 'the company', 'we' or 'our' are to BT Group plc (which includes the activities of British Telecommunications plc) and its subsidiaries and lines of business, internal service units, or any of them as the context may require. References to '2014', '2013', '2012', '2011...

  • Page 4
    ... 70 Reports of the Board Committees 89 Directors' information 90 General information 93 Shareholders and Annual General Meeting Governance Additional information Financial statements The best network provider 94 164 72 sustainable business leader A responsible and Look out for...17 Page number...

  • Page 5
    ... from their employee share plans in 2013. We are also recognising the achievements in our UK business by paying each of our UK team members a £250 bonus in addition to their normal pay increase. Since I joined BT I have worked to streamline and refresh the Board, to make sure we have the right team...

  • Page 6
    ... full year dividend 2012 External revenue and adjusted EBITDA by line of business Financial statements Additional information External revenue 9% 15% 40% Adjusted EBITDAa 10% 2012 2011 Change 8.3p 7.4p 12% 40% 30% 36% 20% BT Global Services BT Retail BT Wholesale Openreach a Items...

  • Page 7
    ... Business' for UK SMEs BT Global Services - a global leader The wholesaler of choice The best network provider A responsible and sustainable business leader Read more on page 24 25 Strategy 25 25 26 26 A better future Customer service delivery Read more on customer service delivery on page Cost...

  • Page 8
    ... serve through these customer-facing units...BT Global Services BT Retail Openreach Performance BT Wholesale Read more on page 10 Read more on page 11 Read more on page 11 Read more on page 11 Governance ...by using these resources Brand & reputation People Networks & platforms Innovation...

  • Page 9
    ... 94 37% retail share of DSL, LLU and fibre broadband market at 31 March 2012 Number of Olympic Games locations we are delivering the communications network across Total operating cost savings over the last three years BT Global Services order intake >170 £560m Investment in global research and...

  • Page 10
    ... employees) 60% Cumulative reduction in our carbon emissions intensity per unit of value added compared with 1997 Our MyDonate online service for charitable giving is free of charge Around 3,000 charities registered for MyDonate in its first year 1m UK SME customers Business Overview Overview

  • Page 11
    ... consultancy so fast broadband speeds are essential to helping her succeed. I love the freedom and ï¬,exibility our BT package gives our family. Alice Harold Mum and freelance digital consultant Additional information Financial statements Governance Performance Strategy Business Overview...

  • Page 12
    ... 14 UK Small and medium-sized enterprises 15 Large corporate and public sector customers 16 Wholesale customers 18 Regulation 18 European Union regulation 18 UK Regulation 19 Overseas regulation Business Additional information Financial statements Governance Performance Strategy Overview Overview

  • Page 13
    ... BT Wholesale Openreach Asia Pacific Governance Additional information Financial statements BT Innovate & Design BT Operate BT Global Services BT Global Services is a global leader in managed networked IT services, serving the needs of customers in more than 170 countries worldwide. We provide...

  • Page 14
    ...CPs' networks. Our business is subject to regulation that requires us to sell services to all CPs on an open and equal basis, meaning that external CPs can buy services from us on the same terms as BT's lines of business. To make Additional information Financial statements Governance Performance...

  • Page 15
    ... offer customers in response to market trends. How we are organised to serve our customers Customers Large corporate & public sector customers UK Consumers UK SMEs Wholesale customers BT Retail BT Global Services BT Wholesale Openreach Customer-facing units Business this work effectively...

  • Page 16
    ...TV services, provided that there is suitable regulatory intervention to allow fair access to premium content. Financial statements Governance Performance Strategy Wi-fi Wi-fi networks allow customers to access the internet out of the home at hotspot locations as an alternative to using mobile...

  • Page 17
    ... as call waiting and free inclusive 0800 and 0845 minutes. We also offer alternative payment options such as Line Rental Saver which reduces the line rental charge if customers pay for a whole year upfront. We are the only company to provide BT Basic, a simple, low-cost telephone service available...

  • Page 18
    ... data centres, unified communications and security solutions. We also provide hardware, computing support services and consultancy. We work with most leading vendors including Cisco, Microsoft, Citrix, HP, NetApps and Symantec. 1,046 400 200 0 2011 2012 2013 2014 2015 Large corporate and public...

  • Page 19
    ... information Financial statements Governance Strategy Products and services We build and run global networks and provide services such as UCC, customer relationship management (CRM), data centre services and managed security solutions supported by professional services skills. We deliver value...

  • Page 20
    ... information Financial statements Governance Performance Internationally, we compete with the wholesale divisions of local incumbents and alternative network operators as well as global wholesale telecoms companies. Wholesale Line Rental (WLR) Openreach sells WLR which is used by CPs to offer...

  • Page 21
    ... meeting the mandatory Government security assurance levels required to support PSN opportunities in the UK. Capacity, call-based products and IP Exchange We sell a wide range of capacity and call-based products and services, both regulated and unregulated, using both traditional and IP technologies...

  • Page 22
    ... regulator to carry out a review of the US Business Access market to help us get fairer terms and lower prices from the incumbent operators for wholesale products in this important market. Additional information Financial statements Governance Performance Strategy Business Ofcom During 2013...

  • Page 23
    ...helps me deliver a better service to my clients. For example, my eCommerce clients expect 24/7 support and with super-fast broadband at home it is straightforward to step in immediately if there's an emergency out of hours." Performance Additional information Financial statements Governance Business...

  • Page 24
    ...'Brand for Business' for UK SMEs 25 BT Global Services - a global leader 25 The wholesaler of choice 26 The best network provider 26 A responsible and sustainable business leader 28 How we measure our progress 28 Adjusted earnings per share 28 Adjusted free cash ï¬,ow 28 Customer service improvement...

  • Page 25
    .... The total order intake for our global business was £6.7bn during the year with an over 60% increase in orders from these faster growing economies. We aim to provide the best service in the market and our 'right first time' programme remains at the core of our service improvement programme. We...

  • Page 26
    ...cantly improved service levels for our customers. Details of the performance on customer service delivery for each of our lines of business can be found in the Performance section on page Business 41 Additional information Financial statements Governance Performance Strategy Cost transformation We...

  • Page 27
    ... customers. BT Global Services is adding further value by offering industry-specific solutions and expertise to customers. We have also made investments in customer service and billing and in our virtual data-centres. › the superior cost and bandwidth performance of fixed networks over wireless...

  • Page 28
    ...continue to have an effect on our wholesale business. We are working to identify growth opportunities that will help mitigate the impact. BT Global Services - a global leader We are already a leader in the market for managed networked IT services. We have been recognised by Gartner, Inc., a leading...

  • Page 29
    ...and improving the work-life balance of employees. Businesses are also able to use high quality voice and video calls - helping them to reduce time and money spent on travel, while still gaining the benefit of direct customer contact. This also helps lower CO2 emissions. Overview Overview Strategy...

  • Page 30
    ... and secure networks to allow the services needed for people and businesses to thrive. Getting this right is also essential for building trust in BT, which contributes to the value of our brand. Access to fibre broadband A recent independent report predicts that fibre broadband will result in...

  • Page 31
    ...operations after capital expenditure and finance costs and reï¬,ects the cash available to invest in the business, repay debt, support the pension scheme and pay dividends. Our free cash ï¬,ow measure changed from reported free cash ï¬,ow to adjusted free cash ï¬,ow in 2012 to align with management...

  • Page 32
    ...number of IT applications by 11% over the year, which has helped BTID and BTO to underpin significant cost reduction. 58 Additional information Financial statements Governance Performance Pay and benefits Strategy Employee representation Business Networks and platforms Overview Overview...

  • Page 33
    ... performed trials using TV white space radio technology to get better broadband to locations on the Isle of Bute Financial statements Governance a Countries where BT, directly or working with partners, has an MPLS network service. Performance Strategy Business Overview Overview Strategy...

  • Page 34
    ...telecoms operators, low value spend, or where there are specific customer requirements. In 2012 the average number of days between the invoice date and the date of the payment run for the invoice was 61 days (2011: 64 days). In the UK we provide access to a financing scheme which offers contracted...

  • Page 35
    ... n s e Risk reporting Improving the way we report risks to senior management, by providing a clearer focus on the key areas of concern. This makes it easier for our managers to take account of risks in their decision making. Risk evaluation Financial statements Additional information Enhancing our...

  • Page 36
    ... unit provide assurance over the effectiveness of their risk management processes. Group Risk Panel Line of business & service unit audit & risk committees Assurance Management Line of business & service unit leadership teams Additional information Financial statements Governance Performance...

  • Page 37
    ...and management of risk on our major contracts. Our independent review programme continues to help us identify lessons learned and to promote best practice through the business. Business Additional information Financial statements Governance Performance Strategy Overview Overview Strategy Our risks

  • Page 38
    ...ensure better alignment and growth in underlying revenue excluding transit now carries a 20% weighting as a performance measure in our incentive share awards (see page 80). Business Additional information Financial statements Governance Performance Strategy Overview Overview Strategy Our risks 35

  • Page 39
    ... regular checks on our business using Internal Audit teams as well as external providers. We review our business operations to ensure that our policies have been complied with. Business Additional information Financial statements Governance Performance Strategy Overview Overview Strategy Our risks

  • Page 40
    Supply chain Business Additional information Financial statements Governance Performance Strategy We are dependent on our supply chain for the delivery of goods and services on time, to cost and to specification. Failure of any of our critical suppliers to meet agreed requirements could adversely ...

  • Page 41
    ... BT Global Services - a global leader CLSA Asia-Pacific Markets is Asia's leading independent brokerage and investment group. It chose BT to provide a fully managed voice, data, and trading systems solution across 14 countries in the Asia Pacific region, the UK, and the US. Under the seven-year...

  • Page 42
    ... 50 Group financial performance 50 Group results 51 Income statement 53 Cash ï¬,ow and net debt 56 Taxation 57 Capital expenditure 57 Balance sheet 58 Pensions 59 Other information Business Additional information Financial statements Governance We measure performance of our customer-facing lines of...

  • Page 43
    ... spend around £300m on a share buyback programme in 2013 which will counteract the dilutive effect of all-employee share option plans maturing in 2013 and add to shareholder returns. 2012 performance We have delivered financial results for the year in line with or ahead of our targets. Underlying...

  • Page 44
    ... information Financial statements Governance Performance Business Cost transformation We have continued to improve the efficiency of our operations helping to deliver a 4% reduction in net operating costs (2011: 7% reduction). We achieved this through: › increasing our use of shared service...

  • Page 45
    ... from our cost saving initiatives as set out above. Additional information Financial statements Governance Performance Strategy Business Contracts signed in 2012 included: NHS contracts 2012 was our busiest year ever in the delivery of our large NHS contracts and communications services. We...

  • Page 46
    ... statements -200 -219 -130 Governance Performance Strategy 290 Capital expenditure increased by 12% (2011: 17% decrease) due to customer contract commitments, additional expenditure to support the delivery of new contracts in EMEA and Latin America, as well as continued network investment...

  • Page 47
    ...the capacity of our network, lowers the cost of bandwidth, brings our network closer to businesses and enhances our Ethernet and IP capabilities to offer new services. Strategy Additional information Financial statements Governance Performance 53% BT's retail net additions BT's retail share of DSL...

  • Page 48
    ... managed services to our wholesale customers. Key facts Total order intake of around £750m MNS revenue represents 27% of external revenue MEAS available at more than 13,000 mobile base station sites Over 200 CP customers for global IP Exchange Governance Additional information Financial statements...

  • Page 49
    ...in an exchange area. Additional information Financial statements Governance Performance Strategy Business Contracts Net operating costs reduced by 6% (2011: 5% decline) but increased by 3% (2011: 3%) excluding transit costs, as detailed above. Overview Overview Performance Line of business...

  • Page 50
    ...1% (2011: 13% decrease) as efficiency improvements were offset by higher labour costs due to additional engineering activity and increased leaver costs. Customer service delivery We have improved our delivery performance for new copper lines. We worked with industry to establish a target lead-time...

  • Page 51
    ...taxation from two years previously. BT's community investment Customer service delivery KPI When customers do need to contact us with a query or to report a problem with their service, we aim to meet their needs through one call with our 'right first time' programme. We measure our success through...

  • Page 52
    ... target to reduce our SAR to 2.21%. Sickness absence rate 2010 2011 2012 2010 2011 2012 Performance Additional information Financial statements Governance 2010 2011 2012 2012 This saw a corresponding reduction in our sick pay costs. Employee engagement KPI We measure our success in this area...

  • Page 53
    ... £266m Full year dividend 8.3p 12% 2012 7.4p 7% 2011 6.9p 6% 2010 a Items presented as adjusted are stated before specific items. See page 166 for further details. b See definition on page 169. Additional information Financial statements Governance Strategy Business Overview Overview

  • Page 54
    ... Business Additional information Financial statements Governance 2012 Summarised income statement Year ended 31 March Before specific items Revenue Other operating income Operating costsa EBITDA Depreciation and amortisation Operating profit Net finance expense Associates and joint ventures...

  • Page 55
    ... our 2013 target of above £6.0bn a year early. The 3% and 4% increase in 2012 and 2011, respectively, reï¬,ect the benefits from our cost transformation activities. An analysis of EBITDA by line of business is provided in note 4 to the consolidated financial statements. Net pension interest...

  • Page 56
    ... be paid, subject to shareholder approval, on 3 September 2012 to shareholders on the register on 10 August 2012. Additional information Financial statements Governance Performance 17.3 Strategy 3.0 2.6 Business Earnings per share Overview Overview Performance Group financial performance...

  • Page 57
    ... management policy is to reduce net debt over time while investing in the business, supporting the pension scheme and paying progressive dividends. In order to meet this objective we may issue or repay debt, issue new shares, repurchase shares or adjust the amount of dividends paid to shareholders...

  • Page 58
    ... Financial statements Performance Strategy 110 Business Net debt re-measurement of hedged risks under fair value hedges and the use of the effective interest method. Currency denominated balances are retranslated to Sterling at swap rates where hedged. Overview Overview Performance Group...

  • Page 59
    ...to spend around £300m in 2013 on a share buyback programme which will counteract the dilutive effect of all-employee share option plans maturing in 2013 and add to shareholder returns. Tax expense Strategy Additional information Financial statements Governance Performance Our effective tax rate on...

  • Page 60
    ... continuing strategy to improve customer service delivery and invest for the future of the business. In 2012 our capital expenditure comprised investment in: › increasing the footprint of our fibre broadband network › extending our WBC coverage › providing additional Ethernet ports to support...

  • Page 61
    ... make a £2.0bn lump sum pension deficit payment, half the funding deficit at 30 June 2011. Overview We provide retirement plans for employees. The largest of these plans is the BT Pension Scheme (BTPS), a defined benefit plan in the UK. Although closed to new members, the BTPS still has around...

  • Page 62
    ... of 2011. Performance Additional information Financial statements Governance a Excludes fair value adjustments for hedged risks. b Includes £262m of accrued interest within less than one year. Strategy Business Other information At 31 March 2012 we had cash, cash equivalents and current asset...

  • Page 63
    ... scale network investments necessary to support national backhaul and access. Joel Stradling Current Analysis The wholesaler of choice With the average adult in the UK now spending almost half their waking hours using the services we provide or support, BT's communications provider customers know...

  • Page 64
    ...'s report 75 Committee for Sustainable and Responsible Business Chairman's report 76 Report on Directors' Remuneration 89 Directors' information 90 General information 93 Shareholders and Annual General Meeting Business Additional information Financial statements Governance Performance Strategy 62...

  • Page 65
    ... reporting and executive pay and shareholder voting rights. Sir Michael Rake Chairman 9 May 2012 Additional information Financial statements As Chairman of BT, I explain how your company has been governed over the year, the main activities that have been carried out by the Board and its Committees...

  • Page 66
    ... Chanmugam a Gavin Patterson a e Key to membership of Board Committees a b c Operating Audit & Risk Remuneration d e f Nominating & Governance Sustainable and Responsible Business BT Pensions g Equality of Access Board Additional information Financial statements Other appointments include...

  • Page 67
    ...as risk, control, governance and sustainable business. Prior to his retirement in 2007, Phil's roles included group finance director of HBOS, chairman of Insight Investment and Clerical Medical and chief executive of Zurich Life and Eagle Star Life. Business Overview Overview Governance Board of...

  • Page 68
    ... Additional information Financial statements Governance Performance Audit & Risk Committee Nominating & Governance Committee Remuneration Committee BT Pensions Committee Committee for Sustainable and Responsible Business Equality of Access Board The reports of the following Committees are set...

  • Page 69
    ... Group Risk Register. It agrees the corporate governance framework, including giving authority to the key management Committee, the Operating Committee, to make decisions on operational and other matters. The roles and powers of this Committee are set out on page 69. A formal statement of the Board...

  • Page 70
    ...the year, and the Board also considered the company's approach to tax and private shareholders and had a review Additional information Financial statements 4% Governance Performance Strategy Business Roles of the Chairman and the Chief Executive Role of the non-executive directors Overview...

  • Page 71
    ... ahead of each Board meeting and at other appropriate times, and to take account of their duties as directors. Strategy Additional information Financial statements Governance Performance Access to wider external perspective Focus of work Whether the Audit & Risk Committee members are receiving suf...

  • Page 72
    ... BT Global Services on 1 January 2010. Jeff previously spent around 25 years with Electronic Data Systems in the US. Performance CEO, BT Wholesale Appointed CEO, BT Wholesale on 1 September 2011. Nigel was formerly BT Business Managing Director, BT Retail. Additional information Financial statements...

  • Page 73
    ... the Annual Report & Form 20-F about the design and operation of internal controls or weaknesses in the controls, including any fraud involving management or other employees who have a significant role in the company's financial controls. The Board, as required by UK law, takes responsibility for...

  • Page 74
    ...the Annual Report & Form 20-F 2011, together with annual, half-year and quarterly results for recommendation to the Board. We are keen to interact with management below executive level and representatives from finance and internal audit have been invited to attend meetings. The Committee sets time...

  • Page 75
    ... procedures within BT and have a code of ethics for the Chief Executive, Group Finance Director and senior finance managers as required by the Sarbanes-Oxley Act. Corporate governance developments 31 August 2011. Strategy Overview Overview Governance Reports of the Board Committees

  • Page 76
    ...Governance Committee meetings are sent, at their request, to directors who are not members of the Committee, where appropriate to do so. Governance and compliance Governance and compliance programme During the year we have reviewed and endorsed BT group-wide policies on marketing development funds...

  • Page 77
    ... Pensions Committee Chair's report We received regular reports on the performance of the BTPS and held two joint meetings with the BTPS Trustee board in 2012 to discuss the BTPS performance, investment strategy and any proposed changes. Business Additional information Financial statements Governance...

  • Page 78
    ...an annual statement which is set out in our Better Future report. The group annually approves investment for sustainable and responsible business. For the year ended 31 March 2012, this investment target was a minimum of 1% of adjusted profit before taxation (based on 2011 results). This investment...

  • Page 79
    ...2010-2012, that will vest in May 2012. c Pension allowance paid in cash. calculated using the closing market share price of 214.5p on 8 May 2012. Additional information Financial statements Governance Performance Strategy Business Overview Overview Governance Reports of the Board Committees

  • Page 80
    ... a number of performance-related bonus schemes across the group › business unit performance measures are cascaded down through the organisation › BT offers employment conditions that reï¬,ect our values and are commensurate with a large publicly listed company, including high standards of health...

  • Page 81
    ... deficit payments. In 2011 the measure was reported free cash ï¬,ow. The use of adjusted free cash ï¬,ow more closely Financial statements Governance Performance Annual bonus Strategy Remuneration in 2012 Business Annual bonuses in 2012 were assessed by the Committee based on a number of...

  • Page 82
    ... remuneration Performance Incentive Share Plan 10 Strategy Business aligns remuneration metrics with results delivered by the group's trading activities and key measures of performance in our reported results. Remuneration in 2013 Overview Overview Governance Reports of the Board Committees

  • Page 83
    ...years. This measure has been retained under the current remuneration policy, although a free cash ï¬,ow measure was added for awards granted in 2009 and 2010, and in 2011 an additional underlying revenue growth (excluding transit) measure was added. The following table shows the vesting levels of BT...

  • Page 84
    ... the Board. This policy is not mandatory. Current shareholdings are shown on page 83. No element of non-executive remuneration is performancerelated. Non-executive directors do not participate in BT's bonus or employee share plans and are not members of any of the company pension schemes. Committee...

  • Page 85
    ... an annual fee of £50,000 and the benefit of free BA ï¬,ights. Additional information Financial statements Governance Outside appointments Performance Strategy Business Directors' service agreements and letters of appointment Overview Overview Governance Reports of the Board Committees

  • Page 86
    .... Financial statements Additional information Governance Performance 40 Strategy This graph illustrates, as required by the Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, the performance of BT Group plc measured by TSR relative to a broad equity market...

  • Page 87
    ... Board Committee meetings from overseas on an intercontinental basis. h Carl Symon retired as a director on 13 January 2012. cover, professional subscriptions. Additional information Financial statements Governance a Pension allowance paid in cash for 2012 - see 'Pensions' on page 87. b Annual...

  • Page 88
    ... market price of a BT share for the three days prior to grant. It is expected that awards will be granted in June 2012. Additional information Financial statements Governance Performance Strategy Business Deferred Bonus Plan (DBP) awards at 31 March 2012 Overview Overview Governance Reports...

  • Page 89
    ... group of 25 companies, 40% is linked to a three-year cumulative free cash ï¬,ow measure and 20% to a measure of underlying revenue growth (excluding transit) over three years. Additional information Financial statements Governance Performance Strategy - Business Share awards under long-term...

  • Page 90
    ... schemes, and the company made no payments towards retirement provision. BT provides him with a lump sum death in service benefit of £1m. Additional information Financial statements Governance During the year no awards of shares were granted under the ESIP. Performance The market price of BT...

  • Page 91
    ... company paid £50,000 into his personal pension plan, plus a cash payment of £219,999 representing the balance of the pension allowance for 2012. BT also provides him with a death in service lump sum benefit of four times his salary. Overview Overview Governance Reports of the Board Committees

  • Page 92
    ... Directors' information The directors are responsible for preparing the Annual Report, the Report on Directors' Remuneration and the Financial statements in accordance with applicable law and regulations. Company law requires the directors to prepare financial statements for each financial year...

  • Page 93
    ...in the rules and forms of the SEC. The Chief Executive and Group Finance Director have also provided the certifications required by the Sarbanes-Oxley Act. General information US Regulation New York Stock Exchange BT, as a foreign issuer with American Depositary Shares listed on the New York Stock...

  • Page 94
    ... of risk management and control, report to management and the Audit & Risk Committee on the status of specific areas identified for improvement and promote effective risk management in the lines of business and internal service units operations Overview Overview Governance General information

  • Page 95
    ... as defined in the 2006 Act. During 2012, the company's wholly-owned subsidiary, British Telecommunications plc, made payments totalling £3,550 (2011: £11,935). No loans were made to any political party by any company in the BT Group. Overview Overview Governance General information

  • Page 96
    ... to meet BT's obligations under our employee share plans. At 9 May 2012 a total of 363m shares were retained as treasury shares. All the shares were purchased in an on-market programme of buying back BT shares from November 2003 to 31 July 2008. By order of the Board Substantial shareholdings At...

  • Page 97
    ... network programme delivery. LOCOG knew that BT would deliver on time and that the services and networks it provided would meet its testing communications requirements. Additional information Financial statements Governance Performance Strategy Business The best network provider London 2012...

  • Page 98
    ... policies 4. Segment information 5. Other operating income 6. Operating costs 7. Employees 8. Audit, audit related and other non-audit services 9. Specific items 10. Taxation 11. Earnings per share 12. Dividends 13. Intangible assets 14. Property, plant and equipment 15. Associates and joint...

  • Page 99
    ...or Performance Additional information Financial statements Governance we have not received all the information and explanations we require for our audit. the directors' statement, set out on page 89, in relation to going concern; the part of the Corporate Governance Statement relating to the company...

  • Page 100
    ...in conditions, or that the degree of compliance with the policies or procedures may deteriorate. PricewaterhouseCoopers LLP London, United Kingdom 9 May 2012 Additional information Financial statements Governance Performance Strategy Business Overview Overview Financial statements Report of...

  • Page 101
    ...provided in note 9. 1,629 2 11 (127) - 1,502 2 19.4p 18.5p Additional information Financial statements 15 9 Governance Performance Attributable to: Equity shareholders of the parent Non-controlling interests 1,836 1 166 - 2,002 1 Strategy Business Before specific items £m Overview...

  • Page 102
    ... relating to retirement benefit obligations Exchange differences on translation of foreign operations Fair value movements on available-for-sale assets Fair value movements on cash ï¬,ow hedges: - net fair value losses - recognised in income and expense - reclassified and reported in non-current...

  • Page 103
    ... balance sheet At 31 March Non-current assets Intangible assets Property, plant and equipment Derivative financial instruments Investments Associates and joint ventures Trade and other receivables Deferred tax assets Open/View in Microsoft Excel 2012 £m 3,127 14,388 886 68 153 169 626 19,417 2011...

  • Page 104
    ...(17) 11 Total equity £m 169 1,029 (5,503) 1,350 496 (4) (2,632) (263) 81 19 4 (4) (2,626) 4,953 (543) 68 91 8 1,951 2,003 (2,908) 577 179 (149) (589) 75 17 20 (17) 1,308 a The allotted, called up, and fully paid ordinary share capital of BT Group plc at 31 March 2012 and 31 March 2011 was £408m...

  • Page 105
    ... in provisions and other liabilitiesa Cash generated from operations Income taxes paid Income tax repayment for prior years Net cash inï¬,ow from operating activities Cash ï¬,ow from investing activities Interest received Dividends received from associates and joint ventures Proceeds on disposal of...

  • Page 106
    ... life expectancy of the members, the salary progression of our current employees, the return that the pension fund assets will generate in the time before they are used to fund the pension payments, price inï¬,ation and the discount rate used to calculate the net present value of the future pension...

  • Page 107
    ... estimated total contract costs, or other Additional information Financial statements Governance Performance 3. Significant accounting policies Revenue Strategy Business 2. Critical accounting estimates and key judgements continued Goodwill The recoverable amount of cash generating units...

  • Page 108
    ... of future benefit that employees have earned in return for their service to date. That benefit is discounted to determine its present value using a rate which is the yield at the balance sheet date on AA credit rated corporate bonds that have maturity dates approximating the term of the group...

  • Page 109
    ...the balance sheet date. Basis of consolidation The group financial statements consolidate the financial statements of BT Group plc ('the company') and its subsidiaries, and they incorporate its share of the results of associates and joint ventures using the equity method of accounting. Accounting...

  • Page 110
    ...same periods in which the associated expenditure is recognised. Grants that compensate the group for the cost of an asset are recognised in the income statement in other operating income on a straight line basis over the useful life of the asset. Overview Overview Financial statements Notes to the...

  • Page 111
    ... of the group. Equity settled share-based payments are measured at fair value (excluding the effect of non market-based vesting conditions) at the date of grant, but including any market-based performance criteria and the impact of non-vesting conditions (for example the requirement for employees to...

  • Page 112
    ...the inclusion of service and finance costs and plan administration costs in the income statement; Strategy Business 3. Significant accounting policies continued • IFRIC 19 'Extinguishing Financial Liabilities with Equity Instruments' and Overview Overview Financial statements Notes to the...

  • Page 113
    ...rationale for using non-GAAP measures is explained on pages 166 to 169. c Net finance expense includes specific item income of £197m in 2012 (2011: £79m expense, 2010: £268m expense). See note 9. Additional information Financial statements 19,307 Governance Performance Strategy Business...

  • Page 114
    ... and BT Wholesale by £49m and £8m, respectively (2010: £46m and £9m). There is no impact on line of business EBITDA and there is no impact on total group results. Internal revenue and costs Intra group revenue generated from the sale of regulated products and services is based on market price...

  • Page 115
    ... 2011 Property, plant and equipment Intangible assets Capital expenditure BT Global Services £m 338 160 498 BT Retail BT Wholesale £m £m 355 79 434 246 83 329 Openreach £m 982 105 1,087 Other £m 169 73 242 Total £m 2,590 Additional information 2,090 500 Financial statements BT Global...

  • Page 116
    ... instruments, investments and deferred tax assets, are based on the location of the assets. Governance Non-current assets Performance 2012 £m 2011 £m 2010 £m Strategy Business 4. Segment information continued Revenue by products and services Overview Overview Financial statements Notes...

  • Page 117
    ... (2011: £444m, 2010: £491m) in respect of internally developed computer software. 7. Employees 2012 Number of employees in the groupa UK Non-UK Total employees Year end 000 73.9 15.1 89.0 Average 000 74.7 16.0 90.7 2012 Number of employees in the groupa BT Global Services BT Retail BT Wholesale...

  • Page 118
    ... suitable measure to consider. This represented 17% of the total fees in 2012 (2011: 18%, 2010: 17%). The BT Pension Scheme is an associated pension fund as defined in the Companies (Disclosure of Auditor Remuneration and Liability Limitation Agreements) (Amendment) Regulations 2011. In the year...

  • Page 119
    ... a result of the change in the UK statutory corporation tax rate from 26% to 24% effective in 2013 but enacted in 2012, and from 28% to 26% effective in 2012 but enacted in 2011. Additional information Financial statements (420) Governance Share of results of associates and joint ventures (Pro...

  • Page 120
    ...disposal of business Other deferred tax assets not recognised Associates and joint ventures Adjustments in respect of prior periods Tax credit in respect of settlement of open tax years Re-measurement of deferred tax balances Other Total taxation (expense) credit and effective tax rate Exclude speci...

  • Page 121
    ...year. Additional information Financial statements Governance Excess capital allowances £m Retirement benefit Share-based obligationsa payments £m £m Performance Strategy Business 10. Taxation continued Tax components of other comprehensive income Overview Overview Financial statements...

  • Page 122
    ...number of shares (millions) Basic earnings per share Diluted earnings per share 2012 2,002 7,763 310 128 8,201 25.8p 24.4p 2011 1,502 7,750 252 114 8,116 19.4p 18.5p 2010 1,028 7,988 13.3p 12.9p Additional information 7,740 174 74 Financial statements Governance Performance Strategy Business...

  • Page 123
    ... in these financial statements. The proposed dividend will be payable to all shareholders on the Register of Members on 10 August 2012. 13. Intangible assets Brands, customer relationships and technology £m Telecoms licences and other £m Internally developed software £m Cost At 1 April 2010...

  • Page 124
    ... - - 21 Total £m 1,432 6 - (39) (42) 1,357 (7) (11) The discount rate used in performing the value in use calculation in 2012 was 9.2% (2011: 10.0%) for all CGUs. The perpetuity growth rate for BT Global Services was 2.5% (2011: 2.5%) and 2.0% (2011: 2.0%) for all BT Retail CGUs. There were no new...

  • Page 125
    ... to assets in the course of construction in 2012 include interest capitalised at a weighted average borrowing rate of 7.3% (2011: 7.8%). Additional information 627 Financial statements Governance Performance Strategy Business 14. Property, plant and equipment Overview Overview Financial...

  • Page 126
    ...March 2012 are set out on page 163. 16. Inventories Consumables Work in progress Finished goods 17 40 47 104 28 46 47 121 Additional information Financial statements At 31 March 2012 £m 2011 £m Governance Performance Strategy Business 15. Associates and joint ventures Overview Overview...

  • Page 127
    124 At 31 March Non-current Other assetsa of £84m (2011: £71m). 2012 £m 169 2011 £m 286 a Other assets includes costs relating to the initial set up, transition or transformation phase of long-term networked IT services contracts of £85m (2011: £215m) and prepayments and leasing debtors ...

  • Page 128
    ... income 2012 £m 821 54 875 2011 £m 762 69 831 a Non-current payables mainly relate to operating lease liabilities and deferred gains on a prior period sale and finance leaseback transaction. Strategy Business 17. Trade and other receivables continued Overview Overview Financial statements...

  • Page 129
    ... for property rationalisation costs and £nil (2011: £24m) relating to the BT Global Services restructuring programme. Additional information Financial statements Governance Performance At 31 March 2012 £m 2011 £m Strategy Business 19. Provisions Overview Overview Financial statements...

  • Page 130
    ...to a maximum of 5% Additional information Increases in pensions in payment are based upon CPI Financial statements Governance At 31 March 2012 Performance Strategy Business 20. Retirement benefit plans Background Overview Overview Financial statements Notes to the consolidated financial...

  • Page 131
    ...position, performance of its investments and a summary of member benefits are available in the BTPS Annual Report typically published by the Trustee in May or June each year. Accounting under IAS 19 Group income statement The expense or income arising from all group pension arrangements recognised...

  • Page 132
    ... (2011: £70m) related to unfunded pension arrangements. £6m (2011: £6m, 2010: £6m) of contributions to defined contribution plans were outstanding at 31 March 2012 and are reported under trade and other payables in the group balance sheet. Additional information Financial statements (1,830...

  • Page 133
    ... in the group cash ï¬,ow statement Contributions by employees Benefits paid Other movements Exchange differences Other movements At 1 April 2011 Current service cost Interest expense on pension plan liabilities Expected return on pension plan assetsa Included in the group income statement Actuarial...

  • Page 134
    ... invested around £2.0bn of cash in a portfolio of global corporate bonds. Under IAS 19 plan assets must be valued at the bid market value at the balance sheet date. For the main asset categories: • securities listed on recognised stock exchanges are valued at closing bid prices • properties...

  • Page 135
    ...% 1.83 - n/a - 2012 % 4.95 3.05 2.30c 3.05 2011 % 5.50 3.40 2.40d 3.40 Additional information Rate used to discount liabilities IAS 19 requires that the discount rate is determined by reference to market yields at the reporting date on high quality corporate bonds. The currency and term of these...

  • Page 136
    ...the discount rate, inï¬,ation, salary increases and life expectancy all have a significant effect on the measurement of scheme liabilities. The following table provides an indication of the sensitivity of the IAS 19 pension liability at 31 March 2012, and of the income statement charge for 2013, to...

  • Page 137
    ... year. Additional information Financial statements 25.5 27.7 28.3 1.1 Governance 6.35 4.90 3.20 2.20 3.20 3.20 2.20 Performance Nominal rates (per year) Real rates (per year)a Strategy 77.6% 57.0% Business 20. Retirement benefit plans continued Overview Overview Financial statements...

  • Page 138
    ... rate required to meet the benefits of current employed members reduce to 13.5% of pensionable salaries (including employee contributions) from 13.6% with effect from 1 June 2012. Under the 2008 recovery plan, the group made payments of £525m in December 2009 and 2010, and £505m in March 2011...

  • Page 139
    ...the scheme and pay benefits to members not covered by the Crown Guarantee. There are limits on the amounts paid by the PPF and this would not give exactly the same benefits as those provided by the scheme. 21. Share-based payments Governance Additional information Financial statements The company...

  • Page 140
    ... millions 1 - - - - 1 Normal dates of vesting and exercise (based on calendar years) 2012 2013 2014 2015 2016 Total Additional information Financial statements Governance Performance Strategy Business 21. Share-based payments continued Overview Overview Financial statements Notes to the...

  • Page 141
    ... for BT and the comparator group at the end of the three-year performance period, using each company's volatility and dividend yield, as well as the cross correlation between pairs of stocks. Additional information Financial statements 2012 2011 2010 Governance Performance Strategy Business...

  • Page 142
    ... accounts. Additional information Financial statements 210 Governance Performance Current assets Available-for-sale Loans and receivables Fair value through profit and loss 505 8 - 1 7 11 Strategy At 31 March 2012 £m 2011 £m Business 21. Share-based payments continued Overview...

  • Page 143
    ... below. Apart from finance leases, all borrowings as at 31 March 2012 and 2011 were unsecured. Additional information Financial statements Governance Performance Strategy Business 24. Loans and other borrowings Overview Overview Financial statements Notes to the consolidated financial...

  • Page 144
    ... and network assets. The group's obligations under finance leases are secured by the lessors' title to the leased assets. Additional information Financial statements Obligations under finance leases at the balance sheet date are analysed as follows: Governance Performance a Adjustments...

  • Page 145
    ... information Financial statements Governance Performance value movements on derivatives recycled from the cash ï¬,ow reserve. The items generating these foreign exchange movements are in designated hedge relationships. Strategy Business 25. Finance expense and income Overview Overview...

  • Page 146
    ... has been no change in the nature of the group's risk profile between 31 March 2012 and the date of approval of these financial statements. Governance Additional information Financial statements Strategy Performance Interest rate risk management Management policy The group has interest-bearing...

  • Page 147
    ...Additional information Financial statements A 1% decrease in interest rates would have broadly the same impact in the opposite direction. Governance Performance Sensitivities Interest rates The group is exposed to volatility in the income statement and shareholders' equity arising from changes...

  • Page 148
    ...2011 Outlook Positive Stable Foreign exchange risk management Management policy The purpose of the group's foreign currency hedging activities is to protect the group from the risk that eventual future net inï¬,ows and net outï¬,ows will be adversely affected by changes in exchange rates. The Board...

  • Page 149
    ... - - 344 344 Total £m 75 513 1,023 1,611 a The group holds cash collateral of £350m (2011: £104m) in respect of derivative financial assets with certain counterparties. Additional information Financial statements Governance 733 80 2,558 351 Performance Strategy Outstanding cross-currency...

  • Page 150
    ... market conditions on trading-related financial assets. Governance Performance Strategy a The group holds cash collateral of £350m (2011: £104m) in respect of derivative financial assets with certain counterparties. Business 26. Financial instruments and risk management continued Overview...

  • Page 151
    ... over time whilst investing in the business, supporting the pension scheme and paying progressive dividends. In order to meet this objective, the group may issue or repay debt, issue new shares, repurchase shares, or adjust the amount of dividends paid to shareholders. The group manages the capital...

  • Page 152
    ...at closing rates as at the relevant reporting date. Future variable interest rate cash ï¬,ows were calculated using the most recent rate applied at the Governance Performance Strategy Business 26. Financial instruments and risk management continued Overview Overview Financial statements Notes...

  • Page 153
    ... dates and the mark to market position is settled in Price risk The group has limited exposure to price risk. Additional information Financial statements Governance Performance Strategy Business 26. Financial instruments and risk management continued Overview Overview Financial statements...

  • Page 154
    ...559m) and interest rate swaps of £217m (2011: £66m). Additional information Financial statements Governance Performance 1,023 Strategy Business 26. Financial instruments and risk management continued Fair value of financial instruments Overview Overview Financial statements Notes to the...

  • Page 155
    ... exchange contracts were estimated using discounted cash ï¬,ow models and market rates of interest and foreign exchange at the balance sheet date. Financial statements 569 Governance Performance Strategy 686 - - - Business 26. Financial instruments and risk management continued Overview...

  • Page 156
    ... 3 - uses inputs for the asset or liability that are not based on observable market data, such as internal models or other valuation methods. Level 1 £m Level 2 £m Level 3 £m Total £m Financial assets at fair value Non-current and current derivative financial assets - Derivatives designated as...

  • Page 157
    ...in the income statement in respect of Level 3 assets held at 31 March 2012. Governance At 1 April 2010 Additions Disposals 12 20 (5) Performance - - 302 267 - - 302 267 Strategy Business 26. Financial instruments and risk management continued Overview Overview Financial statements Notes...

  • Page 158
    ...information Forward currency contracts Cash ï¬,ow 176 - 2 1 to 6 months Financial statements Governance Hedged item Hedging instruments Notional principal Hedge type £m Performance Strategy Business 26. Financial instruments and risk management continued Overview Overview Financial...

  • Page 159
    ... years 3 months Purchase of US Dollar denominated retail devices Total a See note 24. Forward currency contracts Cash ï¬,ow 213 2 629 2 302 1 to 6 months Other derivatives Governance Additional information Financial statements The group's policy is not to use derivatives for trading purposes...

  • Page 160
    ...pension entitlements, share options and other long-term incentive plans is shown in the audited part of the Report on Directors' Remuneration, which forms part of the consolidated financial statements. Amounts paid to the group's retirement benefit plans are set out in note 20. There were a number...

  • Page 161
    ... the balance sheet date but not yet incurred was as follows: Strategy Additional information Financial statements Governance Performance At 31 March Property, plant and equipment Computer software Total 2012 £m 431 2 433 2011 £m 467 - 467 Future minimum operating lease payments for the group were...

  • Page 162
    ... the BT Group plc company balance sheet, the BT Group plc company reconciliation of movement in equity shareholders' funds, the BT Group plc accounting policies and related information. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom...

  • Page 163
    ... from shareholders' equity at cost. Business Additional information Financial statements Governance Performance Strategy BT Group plc accounting policies Cash Cash includes cash in hand and bank deposits repayable on demand. Share-based payments The company does not incur a charge for share-based...

  • Page 164
    ... by: Governance Additional information Financial statements Sir Michael Rake Chairman Ian Livingston Chief Executive Tony Chanmugam Group Finance Director Performance 408 62 27 (1,018) 9,696 408 62 27 (1,078) 10,276 Strategy - Business BT Group plc company balance sheet Overview Overview...

  • Page 165
    ...at cost. permitted by Section 408(3) of the Companies Act 2006, no profit and loss account of the company is presented. Additional information Financial statements Governance Performance Strategy Business BT Group plc company reconciliation of movement in equity shareholders' funds Overview...

  • Page 166
    ... Communications related services and products provider Communications related services and products provider Technology equipment retailer Global managed network service provider Broadband service provider Global managed network service provider Group interest in allotted capitalc 100% ordinary...

  • Page 167
    ... Chief Executive, Comic Relief Additional information Financial statements Governance Performance BT is one of our longeststanding partners and has made an amazing contribution to Sport Relief from the start. They provide Comic Relief with the systems, call centres and network support that...

  • Page 168
    ... 171 Selected financial data 173 Financial and operational statistics 175 Information for shareholders 189 Cross reference to Form 20-F 193 Glossary of terms Strategy Additional information Financial statements Governance Performance Business 166 Alternative performance measures Overview Overview

  • Page 169
    .... The alternative performance measures we use may not be directly comparable to similarly titled measures used by other companies. Business Additional information Financial statements Governance Performance Strategy Introduction Specific items The group's income statement and segmental analysis...

  • Page 170
    ... between operating profit and adjusted EBITDA for our lines of business is set out in Segment information, note 4 to the consolidated financial statements. Performance Strategy Business Underlying revenue trends Overview Overview Additional information Alternative performance measures

  • Page 171
    .... Our use of the term adjusted free cash ï¬,ow does not mean that this is a measure of the funds that are available for distribution to shareholders. Governance Additional information Financial statements Performance Strategy Business Earnings per share Overview Overview Additional information...

  • Page 172
    ... set out below. Year ended 31 March Net cash inï¬,ow from operations Add back pension deficit payment Included in cash ï¬,ows from investing activities Net capital expenditure Interest received Dividends received from associates and joint ventures Sales (purchases) of non-current financial assets...

  • Page 173
    ...445 (442) 2,003 25.8p 24.4p Year ended 31 March 2011 Revenue Other operating income Operating costs Operating profit Net finance expense Share of post tax profits of associates and joint ventures Profit on disposal of interest in associate Profit before taxation Taxation Profit for the period...

  • Page 174
    ... actual dividends paid and/or year end exchange rate on proposed dividends. Additional information 8,066 8,223 21.1p 15.8p 31.4c Financial statements Profit (loss) for the year Adjusted Specific items Governance Performance 2,356 Strategy Business Summary group income statement Overview...

  • Page 175
    ...) Total parent shareholders' equity (deficit) Non-controlling interests Total equity (deficit) Additional information Financial statements Governance Performance Strategy 1,174 Business Summary group cash ï¬,ow statement Overview Overview Additional information Selected financial data

  • Page 176
    ...nance lease creditors) less deferred and current tax assets, retirement benefit asset, cash and cash equivalents, derivative financial assets and investments. Additional information Financial statements Governance Performance Strategy 9,460 Business Financial statistics Overview Overview

  • Page 177
    ... cable. e Exchange lines include analogue lines and digital channels sold through BT Global Services, BT Retail and BT Wholesale. 10,919 4,551 15,470 11,802 4,917 16,719 13,051 5,423 18,474 14,514 5,992 20,506 15,793 6,750 22,543 Additional information Financial statements Governance...

  • Page 178
    ...; the BT Pension Scheme recovery plan, operating charge, regular contributions and interest; capital expenditure; effective tax rate; shareholder returns including growing dividends and share buyback; growth opportunities in networked IT services, the pay-TV services market, broadband and mobility...

  • Page 179
    ...rate between Sterling and the US Dollar affect the US Dollar equivalent of the Sterling price of the company's ordinary shares on the London Stock Exchange and, as a result, are likely to affect the market price of the ADSs on the New York Stock Exchange. Background BT Group plc is a public limited...

  • Page 180
    ...) purposes, of BT shares. Rights issue An explanatory note on the effects of the rights issue on the CGT position relating to BT shareholdings is available from the Shareholder Helpline (see page 188). Demerger of O2 - CGT calculation Strategy Additional information Financial statements Governance...

  • Page 181
    ... information Financial statements Governance Performance amount of the final dividend of 57 pence per ADS to be paid to holders of ADSs will be based on the exchange rate in effect on 3 September 2012, the date of payment to holders of ordinary shares. Strategy Business Dividends Overview...

  • Page 182
    ... information Financial statements Governance 2007 2008 2009 2010 2011 2012 Total shareholder return TSR is the measure of the returns that a company has generated for its shareholders, reï¬,ecting share price movements and assuming reinvestment of dividends. BT's TSR for the 2012 financial year...

  • Page 183
    ... small numbers of shares as donations. Further information about ShareGift may be obtained by telephoning 020 7930 3737 or from www.sharegift.org or alternatively, from the Shareholder Helpline (see page 188). Performance Additional information Financial statements Governance Exchange rates BT...

  • Page 184
    ... offer. Any dividend which has not been claimed for ten years after it was declared or became due for payment will be forfeited and will belong to the company. Performance Strategy Business Articles of Association (Articles) Overview Overview Additional information Information for shareholders

  • Page 185
    ... committee at the request of the Board; or performs any other services which the Board consider extend beyond the ordinary duties of a director. Additional information Financial statements Governance Performance (ii) unless the transfer form to be registered is properly stamped to show payment...

  • Page 186
    ... due to retire. Additional information Financial statements Directors' appointment and retirement Under BT's Articles there must be at least two directors, who manage the business of the company. The shareholders can vary this minimum and/or decide a maximum by ordinary resolution. The Board and...

  • Page 187
    ... and the consequences under UK, US federal, state and local, and other laws, of the ownership and disposition of ordinary shares or ADSs. Additional information Financial statements Governance Performance Strategy Business Overview Overview Additional information Information for shareholders

  • Page 188
    ...exchange rates in effect on the date of sale or other disposition and the settlement date. However, in the case of Additional information Financial statements Governance Performance Strategy Business Taxation of dividends Overview Overview Additional information Information for shareholders

  • Page 189
    ... corporations and other customers that require global communications connectivity, are insignificant to the group's financial condition and results of operations. Governance Performance Strategy Business ordinary shares traded on an established securities market that are sold by a cash...

  • Page 190
    ...Summary financial statement & notice of meeting Annual Report & Form 20-F Better future: our annual sustainability report EAB Annual Report Quarterly results releases Current Cost Financial Statements Statement of Business Practice (The Way We Work) Electronic communication Shareholders can choose...

  • Page 191
    [email protected] Financial statements Additional information A full list of BT contacts and an electronic feedback facility is available at www.bt.com/talk Governance Performance Strategy Business Private shareholders Overview Overview Additional information Information for shareholders

  • Page 192
    ... of the company Financial highlights Group financial performance Group results Selected financial data Information for shareholders Exchange rates Not applicable Not applicable 4B Business overview 4C Organisational structure 4D Property, plants and equipment 5 5A Operating and financial...

  • Page 193
    ...Retirement benefit plans Share-based payments Board of Directors Reports of the Board Committees Report on Directors' Remuneration Our resources Group financial performance Income statement Operating costs Consolidated financial statements Notes to the consolidated financial statements Employees...

  • Page 194
    ... shareholders Dividends Articles of Association (Articles) Dividends Directors' information Going concern 59 53 158 178 181 89 8B Significant changes 9 9A The offer and listing Offer and listing details Information for shareholders Stock exchange listings Share and ADS prices Not applicable...

  • Page 195
    ... information Financial statements Governance Performance Purchases of equity securities by the issuer and affiliated purchasers Change in registrant's reporting accountant Corporate Governance Strategy Business Required Item in Form 20-F Item Where information can be found in this Annual...

  • Page 196
    ... applications CP: communications provider CPI: Consumer Prices Index CR: corporate responsibility ESIP (BT Group Employee Share Investment Plan): a plan under which BT can provide free shares to employees, and employees can buy shares in BT from pre-tax salaries Ethernet: a widely-deployed network...

  • Page 197
    ... measured on a daily basis, as tracked by independent analysts, Datastream. It uses the official closing prices for a company's shares, adjusted for all capital actions and dividends paid Governance T Performance S Strategy Business Overview Overview Additional information Glossary of terms

  • Page 198
    ... wholesale line rental - a product supplied by Openreach which is used by CPs to offer telephony services using their own brand, pricing structure and billing, but using BT's network Strategy Additional information Financial statements Governance Performance Y YouView: a service which combines free...

  • Page 199
    196 Notes Additional information Financial statements Governance Performance Strategy Business Overview Overview

  • Page 200
    Notes Additional information Financial statements Governance Performance Strategy Business Overview Overview

  • Page 201
    198 Notes Additional information Financial statements Governance Performance Strategy Business Overview Overview

  • Page 202
    Notes Additional information Financial statements Governance Performance Strategy Business Overview Overview

  • Page 203
    200 Notes Additional information Financial statements Governance Performance Strategy Business Overview Overview

  • Page 204
    Additional information Financial statements Governance Performance Strategy Business Overview Overview

  • Page 205
    ...Matt which is made from 75% de-inked, post-consumer waste and 25% virgin fibre. Please recycle Additional information Printed in England by Pindar Scarborough Ltd Design by saslondon.com Typeset by RR Donnelley Financial statements Governance Performance Strategy Business Overview Overview