BT Group plc Annual General Meeting. 15 July 2015

Transcription

1 BT Group plc 2015 Annual General Meeting 15 July 2015

2 BT Group plc Sir Michael Rake, Chairman

3 Investing for growth Our investments will help us deliver our goal of sustainable, profitable revenue growth Our investment in fibre broadband is transforming the UK Rollout is on budget and ahead of schedule We will take the UK from superfast to ultrafast BT Sport Extended our FA Premier League content Exclusive UEFA Champions League and UEFA Europa League from this summer on 12.5bn acquisition of EE Approved by shareholders Awaiting approval from Competition and Markets Authority

4 Delivering returns for our shareholders Dividend per share Outlook 6.9p +7% 7.4p +12% 8.3p +14% 9.5p +15% 10.9p +14% 12.4p % 2009/ / / / / / /16 8.5p proposed final dividend, up 13%, giving a full year dividend of 12.4p, up 14%

5 Share price performance Since last AGM 1 Update Last these 3 financial from last year?... years 1 40% 35% 30% 25% 20% 29% 20% 140% 120% 100% 80% 69% 123% 15% 60% 10% 5% 0% -5% 0% FTSE Sector BT 40% 20% 0% 28% FTSE Sector BT 1 Total Shareholder Return which includes dividends; to 30 June 2015

6 Our purpose: to use the power of communications to make a better world We care about our customers experience. Always. We bring the benefits of a connected society to everyone. We support our communities through our people and technology. We are taking a more inclusive approach to growth Our products and services will help 10m people overcome social disadvantage by 2020 Our industry can help the world live within its resources Our products and services are helping customers reduce their carbon impact Our people want to work for a company that has a deep sense of purpose Our people and technology generated over 83m for good causes this year More than 1 in 4 BT people volunteered time MyDonate is the only online giving platform that is both non profit and takes no commission We launched a new ambition to help 5m children receive better teaching in computing and tech skills by 2020

7 Financial objectives Deliver sustainable, profitable revenue growth Grow EBITDA Grow free cash flow Invest in business Reduce net debt Support pension fund Pay progressive dividends

8 BT Group plc Gavin Patterson, Chief Executive

9 Overview A ground-breaking year for BT Strong financial discipline is helping us fund strategic investments Key strategic decisions made Planned acquisition of EE New FA Premier League rights Ultrafast broadband investment

10 FY 2014/15 group results 1 YoY change Revenue 17,851m (0.4)% 2 Profit before tax 3,172m 12% EPS 31.5p 12% Free cash flow 3 2,830m 16% 1 before specific items 2 year-on-year change in underlying revenue excluding transit 3 before specific items, pension deficit payments and the cash tax benefit of pension deficit payments

11 Our purpose, goal, strategy and culture Our purpose Our goal Our strategy To use the power of communications to make a better world A growing BT: to deliver sustainable profitable revenue growth Broaden and deepen our customer relationships Deliver superior customer service Transform our costs Invest for growth Fibre TV and content Mobility and future voice UK business markets Leading global companies Our culture A healthy organisation

12 Deliver superior customer service -25% -11% 60 +3, % +4.7% Achieved so far Consumer complaints down >25% Business complaints down 11% All 60 Ofcom minimum service levels exceeded by Openreach 2,500 new engineers and >500 new contact centre agents recruited Speed of delivery of main Global Services products improved by 25% Right First Time improvement across BT All lines of business contributed Future plans Acting on insight Measuring customer interactions on and offline, allowing prompt intervention Keeping customers connected Targeted network maintenance to reduce faults Creating great systems and tools Easy-to-use interfaces for our contact centre advisors and customers, with engineer tracking Working end-to-end Improving customer and supplier processes and interactions Supporting our people New training to encourage ownership and accountability

13 Customer service and cost transformation work together Legacy copper cabinets Typically have high fault rates Next generation copper cabinets Will save c.35,000 faults in 2015/16 Will reduce installation time Use fewer components, and Cost less

14 Cost transformation 6-year cost base 1 reduction Capex 3,088m 1,471m 1,016m 949m 1,308m 132m 611m Opex 16,305m Capex 2,326m Opex 11,580m 2008/9 2009/ / / / / / /15 1 opex is before specific items, depreciation & amortisation. Capex is before purchase of telecommunications licences. 2008/9 opex estimated for impact of historic Other Operating Income restatement

15 % of premises passed Invest for growth Fibre Rollout on budget and ahead of schedule Fibre take-up >22m premises passed 20% 19% Over three-quarters of the UK Building in hard-to-reach areas c.4.2m now connected Up >50%, 19% of those passed 1.2m external fibre customers, more than doubled YoY Ultrafast trials starting Ten-year vision of up to 500Mbps across most of the UK Premium 1Gbps fibre broadband service for high-demand customers 18% 16% 14% 12% 10% 8% 6% 4% 2% 0% Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2012/ / /15

16 Invest for growth TV and content BT TV New set-top boxes 1.14m BT TV customers, up 14% YoY New services and capabilities introduced in year Extra Box, our multi-room service Buy-to-Keep movies and box sets TV Everywhere, enabling customers to watch on multiple devices Sky Sports 1&2 on YouView Without recording New content With recording Coming in September

17 Invest for growth TV and content Continued growth BT Sport 3.3m direct customers, 5.2m including wholesale Encouraging viewing figures Average daily audience up 15% YoY FA Premier League viewing up 10% YoY 26 matches last season peaked >1m viewers An exciting future, with key content secured FA Premier League football secured until 2019 doubling the number of matches Exclusive UEFA Champions League and UEFA Europa League from the summer free to BT TV customers Aviva Premiership Rugby extended until 2021 Wide football portfolio Expected number of matches per year FA Premier League clubs will be featured on BT Sport Current rights >115 c.60 c From 2016/17 1 Based on number of times FA Premier League clubs have appeared, averaged over the past three UEFA Champions League & UEFA Europa League seasons

18 Invest for growth Mobility and future voice From 5 per month Launched this year Business New 4G mobile plans Selling top 20 most popular handsets BT One Phone Consumer Three SIM-only deals offering: 4G plus unlimited access to >5m BT Wi-fi hotspots Free BT Sport on the App Family-friendly features like spending caps >100,000 customers already EE acquisition Creating the UK's leading converged communications provider A true UK digital champion Approved by shareholders in April Awaiting approval from Competition and Markets Authority (expected by 31 March 2016) Good for competition, investment and innovation Consumers and businesses will benefit from: The best of fibre broadband and wi-fi (from BT) and the best 4G connectivity (from EE) New services and bundles that offer great value for money

19 Invest for growth UK business markets From sole traders to UK corporates Building on strength in connectivity to underpin customer relationships Investment 3 key products in VoIP launched portfolio 1 2 Strong growth in business fibre base up c.60% YoY Data & networking seeing accelerating growth Developing strong hosted voice products to attract new customers and reduce churn 3 Developing more bundled products to increase cross-selling, helped by system and sales organisation improvements 1 Continued investment in IT services Focused on higher-margin managed services 2 3 Multiple numbers to one phone

20 Invest for growth Leading global companies Serving c.6,500 large corporate and public sector customers in >170 countries Consolidated our position as a global leader for managed networked IT services New products and services launched Cyber security services - BT Assure Threat Defence High-quality conferencing services 9% revenue increase in high-growth regions New cloud-based unified comms services in AMEA New cloud-enabled data centres in Argentina, Colombia and South Africa Targeted investment in our network

21 In conclusion: a strong platform for growth We ve delivered on the numbers particularly cash flow An improving picture on customer service Good progress on cost transformation We are in a position to invest for the future EE acquisition will help us become the UK s leading communications provider

22 BT Group plc 2015 AGM 15 July 2015

23 For & Discretion Against Vote Withheld Overall Res No. Description Total % Total % Total % Total 12 Re-elect Jasmine Whitbread 5,168,220, % 25,193, % 11,024, % 5,204,438, Elect IsabeI Hudson 5,187,593, % 5,454, % 11,385, % 5,204,433, Reappointment of auditors 4,901,099, % 196,006, % 107,336, % 5,204,442, Remuneration of auditors 5,001,459, % 94,954, % 108,030, % 5,204,444, Authority to allot shares 4,883,621, % 298,203, % 22,623, % 5,204,448, Authority to allot shares for cash* 5,150,424, % 17,056, % 36,965, % 5,204,446, Authority to purchase own shares* 5,179,841, % 12,298, % 12,298, % 5,204,438, Articles of Association* 5,174,349, % 16,225, % 13,852, % 5,204,427, days notice of meetings* 4,753,408, % 437,303, % 13,738, % 5,204,450, Authority for political donations 5,071,062, % 117,694, % 15,673, % 5,204,429,687 * Special Resolutions

24 Resolution Description 1 Reports and accounts 2 Remuneration report 3 Final Dividend 4-12 Re-election of directors 13 Elect Isabel Hudson 14 Reappointment of auditors 15 Remuneration of auditors 16 Authority to allot shares 17 Authority to allot shares for cash* 18 Authority to purchase own shares* 19 Articles of Association* days notice of meetings* 21 Authority for political donations * Special Resolutions

25 Poll on all Resolutions Using your Admission Card/Proxy Card: If voting all shares for, place a cross (X) in For box If voting all shares against, place a cross (X) in Against box If withholding vote, place (X) in Vote withheld box If splitting vote, indicate the number of shares voting for against and Vote withheld Please sign the card Place completed card in ballot box as you leave Please ask a marshal if you have any questions

26 For & Discretion Against Vote Withheld Overall Res No. Description Total % Total % Total % Total 12 Re-elect Jasmine Whitbread 5,168,220, % 25,193, % 11,024, % 5,204,438, Elect IsabeI Hudson 5,187,593, % 5,454, % 11,385, % 5,204,433, Reappointment of auditors 4,901,099, % 196,006, % 107,336, % 5,204,442, Remuneration of auditors 5,001,459, % 94,954, % 108,030, % 5,204,444, Authority to allot shares 4,883,621, % 298,203, % 22,623, % 5,204,448, Authority to allot shares for cash* 5,150,424, % 17,056, % 36,965, % 5,204,446, Authority to purchase own shares* 5,179,841, % 12,298, % 12,298, % 5,204,438, Articles of Association* 5,174,349, % 16,225, % 13,852, % 5,204,427, days notice of meetings* 4,753,408, % 437,303, % 13,738, % 5,204,450, Authority for political donations 5,071,062, % 117,694, % 15,673, % 5,204,429,687 * Special Resolutions

27 Poll on all Resolutions Using your Admission Card/Proxy Card: If voting all shares for, place a cross (X) in For box If voting all shares against, place a cross (X) in Against box If withholding vote, place (X) in Vote withheld box If splitting vote, indicate the number of shares voting for against and Vote withheld Please sign the card Place completed card in ballot box as you leave Please ask a marshal if you have any questions

28 Poll on all Resolutions Using your Admission Card/Proxy Card: If voting all shares for, place a cross (X) in For box If voting all shares against, place a cross (X) in Against box If withholding vote, place (X) in Vote withheld box If splitting vote, indicate the number of shares voting for against and Vote withheld Please sign the card Place completed card in ballot box as you leave Please ask a marshal if you have any questions

29 Poll on all Resolutions Using your Admission Card/Proxy Card: If voting all shares for, place a cross (X) in For box If voting all shares against, place a cross (X) in Against box If withholding vote, place (X) in Vote withheld box If splitting vote, indicate the number of shares voting for against and Vote withheld Please sign the card Place completed card in ballot box as you leave Please ask a marshal if you have any questions