News & offers AGM prizes. September top of the BT Tower! See inside for more information on our 2011 AGM held in London

Transcription

1 September 2011 News & offers AGM 2011 See inside for more information on our 2011 AGM held in London Sir Michael Rake Chairman BT shareholders' unlimited broadband and UK calls deal 250 prizes SEE INSIDE FOR MORE DETAILS Win an ipad2! SEE INSIDE FOR MORE DETAILS Win a trip to the top of the BT Tower! SEE INSIDE FOR MORE DETAILS

2 BT s 2011 AGM It was good to see so many shareholders in London for this year s AGM. At the meeting I outlined how much the changes we have seen over the past year have contributed towards making BT a better business. Thanks to the unrelenting efforts of our people and the leadership shown by the management team, the 2011 financial year has been characterised by a continuing increase in profits, as we prepare the foundations for a return to revenue growth. An important strand in the company s future is broadband a critical service for people and businesses. Our 2.5bn investment in superfast broadband delivered over fibre optic cable will make the UK one of the best connected countries in the world. Our super-fast network has now passed over 5m premises and the customer base has almost trebled in the last six months. It is critical for the productivity and future economic recovery of this country that we continue to roll out fibre at speed. We remain on course to reach two-thirds of the UK with super-fast broadband by the end of We continue to take a broad view of BT s responsibilities. Last year, we invested over 27m in activities that help communities and the environment. Shareholders at the AGM were invited to help BT make a further positive contribution by way of a 5 donation voucher for MyDonate, BT s new online commission-free fundraising service for UK charities. On the day, shareholders helped BT donate a total of 2,120 for a range of charities, with half of the proceeds going to Cancer Research UK. Sir Michael Rake Chairman I also outlined how the different parts of the BT business are doing, both in the UK and internationally. Pressing for fair and proper regulation is one part of ensuring BT can maximise its business. In America and elsewhere, we continue to push for more open markets. In the UK, we continue to press the regulator for the ability to access sports rights and movie rights from BSkyB at fair market prices. The company s financial performance means we are generating the cash we need to invest in the business, reduce our debt, support the pension fund and pay you, our shareholders, progressive dividends. I am pleased to report that shareholders approved a final dividend of five pence at the AGM, meaning a 7% increase in the full year dividend to 7.4 pence. You will find full details of the annual general meeting, including the voting results, online at Sir Michael Rake Chairman

3 Q1 Review Ian Livingston Chief Executive First quarter results add to our confidence in delivering our outlook. As many of you will have read, our latest quarterly financial results (published on 28 July 2011) showed that BT continues to make progress towards delivering our financial, operational and growth goals. I am proud of what our people continue to achieve, particularly as we operate in possibly the most competitive telecoms market in the world. Broadband is very much at the heart of many of our activities and BT Infinity, our super-fast fibre product, is doing well in the marketplace. In the last three months, a quarter of a million broadband customers have been added to our network. In total, 141,000 of these customers chose to take their broadband service via BT Retail that division s highest ever market share. Broadband also helped Openreach achieve its best revenue growth since it was formed five years ago. BT Global Services took 1.6bn of orders in the quarter with its 12-month rolling order intake up 8%. In addition, it made further progress in high growth economies and secured its largest ever contract in Latin America, where it now provides services to the Brazilian Post Office. Our group strategy is fundamentally about customer service delivery. We need to improve what we do for our customers. We do still get it wrong but we are working hard to improve our processes and our service delivery and therefore drive major cost transformation in the business. BT is looking to the future. Our fibre roll out programme is progressing at pace and we continue to develop great products and services for all our customer groups. We are making progress but we also recognise there is a lot more to do. Ian Livingston Chief Executive How we performed in Q1 (to 30 June 2011) Profit before tax 1 up 20% Revenue down 5% BT Global Services order intake was 1.6bn in the quarter Our copper line base grew for the third consecutive quarter BT Retail achieved its highest ever market share of broadband net additions with 141,000 new customers 1 Before specific items

4

5 Win an ipad 2! Are you a new user of the internet? Maybe you have helped someone else to get online? Last year, BT launched its new Get IT Together programme which aims to instill confidence and empower people to get online and make the most of what the internet has to offer. If you have recently discovered the wonders of the internet or helped others take their first steps to get online then we want to hear from you! Tell us your story: getittogether@bt.com and you will automatically be entered into our prize draw for one lucky person to win an ipad 2*. * Terms and conditions for the prize draw can be found at: Forward online Forward, our online shareholder magazine, makes it easy for you to keep up to date with new developments at BT. The content includes an exciting mix of videos and articles regularly refreshed and updated. See the latest articles including our Get IT Together campaign. Great shareholder offers Sign up for new story alerts Full stories and more are available on our online shareholder magazine at forward

6 Win an exciting trip to the top of the BT Tower!* Offer ends 31 October Become an e-shareholder by 31st October and you will be automatically entered into a free prize draw to win one of 250 trips for two people up the BT Tower. To be an e-shareholder you must have your dividend paid directly to your bank or building society and have signed up for e-communication. What s more, every new e-shareholder registered will receive a 40 wine voucher to spend at Naked Wines *. It was a unique experience, fabulous hospitality including a lovely lunch. Wonderful panoramic views and perfect weather to see forever. My grandaughter Sophie thought the whole experience one of the best she has had in London. John Toombs, winner from the February BT Tower prize draw Become an e-shareholder in two easy steps Step 1 Register your e-shareholder account Go to All you need is your Shareholder reference number (from your dividend tax voucher) and your address. Step 2 DIRECT DIVIDEND Choose direct dividend payment Fill in the form attached to your dividend form. Once you have received your activation code in the post, just add your bank account details. Simple! * Terms and conditions for the prize draw and Naked Wines voucher can be found at:

7

8 Contact information Telephone Shareholder helpline for general enquiries call: Freefone ( from outside the UK) Textphone ( from outside the UK) Post Equiniti, Aspect House, Spencer Road, Lancing, West Sussex, BN99 6DA, United Kingdom BT Group plc Registered office: 81 Newgate Street, London EC1A 7AJ. Registered in England and Wales No PHME: An easy and convenient way to trade BT shares and other securities Equiniti Investment Account As well as offering trading in certificated shares, Equiniti also offer a full nominee trading account (Investment Account). This offers shareholders and employees an easy and convenient way to trade shares in BT, as well as a full range of securities. It s FREE to open, once your account is active you can: Choose how you want to trade shares including BT shares Regular investment option commission from as little as 1.75 per trade SmartDeal bulk dealing option once a month allowing us to offer cheaper prices buy or sell from 5 per trade At-Best real-time internet and phone dealing, with immediate or price limit and stop options prices from Fund your account immediately using a debit card View your portfolio online available 24/7 Access market prices and in-depth financial information on the internet, including market data and company news Obtain the best available prices through a range of market makers View historic trade information, which is updated immediately after trading Visit today! Printed in England by Howitt Ltd Printed on Amadeus 50% Recycled Silk which is made from 50% de-inked, post consumer waste and 50% virgin fibre. Please recycle Cert no. C