A new drive for growth in Asia Pacific, Middle East and Africa

A new drive for growth in Asia Pacific, Middle East and Africa Kevin Taylor President, Asia Pacific, Middle East and Africa, & Global Logistics November 2013

3 years ago we launched a series of investments to accelerate our growth in the emerging markets Achieving double digit revenue growth across all three high growth regions Asia Pacific May 2010 Latin America November 2011 Middle East & Africa February 2012 Delivered on our 3 year plan to significantly grow our business 20 new products and services launched 8 new technology showcases Launched a Global IP Exchange hub in Singapore Established an Asia Pacific Health Practice Opened a new global development centre in Malaysia 75 new logos since the launch of the investment programme Expanded infrastructure and network reach across Brazil, Mexico and Colombia More than 40,000 customer connections Launched BT Ethernet Connect, BT Assure, BT Compute, BT Contact, BT One and BT Conferencing 42 new customers signed within the first year 9 new products & services 3 new network nodes launched in the Middle East 12 additional countries now covered in Africa New expanded offices in Durban and Johannesburg New regional network operations center in Durban Significant investment South Africa infrastructure

As a result we have achieved a leadership position in Asia Pacific Recognised as best in class and a leader in the Asia Pacific market Asia Pacific business performance Awarded the Best Managed Service Provider at the Telecom Asia Awards for the 4 th year running Best Managed Service Provider Best Unified Communications as a Service Asia Pacific Cloud-based Contact Center Service Provider of the Year # new logos # of deals Win rate Positioned by Gartner as a leader in the Asia Pacific (2012) and Global Network Service Providers Magic Quadrant (2013) and Communications Outsourcing and Professional Services Magic Quadrant for the 4th consecutive year. 2010 2011 2012 Pipeline value Average deal size Featured in the emerging set of global service providers for EMEA, Americas and Asia, I2012 A leader in the IDC MarketScape: Asia Pacific Next-Generation Telecom - ICT Services 2013 Vendor Analysis BT has been very committed to continuing to invest and enhance its capabilities in the region. Over the past 12 months, BT has launched numerous new offerings and service enhancements to its already broad portfolio of services in Asia Pacific. The new investments announced today across the wider AMEA region show that BT does not rest on its laurels but continues to strive for service excellence to better serve its customers. Charles Anderson, Associate VP and Head of Telecoms & Mobility, IDC Asia Pacific *Gartner, Global Network Service Provider Magic Quadrant, Neil Rickard and Robert Mason, March 2013 & Gartner, Asia Pacific Network Service Provider Magic Quadrant, To Chee-Eng, Kenshi Tazaki, Vincent Fu & Bjarne Munch, November 2012 & Gartner, Magic Quadrant for Communications Outsourcing and Professional Services, Eric Goodness, Christine Tenneson, October 2013. Gartner does not endorse any vendor, product or service depicted in our research publications, and does not advise technology users to select only those vendors with the highest ratings. Gartner research publications consist of the opinions of Gartner's research organization and should not be construed as statements of fact. Gartner disclaims all warranties, expressed or implied, with respect to this research, including any warranties of merchantability or fitness for a particular purpose.

Since then we have combined our Asia Pacific, Middle East and Africa businesses Where historically trade routes have always been at the heart of doing business Rising GDP Expected to generate 44% of global growth by 2025 UAE & China Trade up 40% Population growth Middle class Expected to account for 75% of the worlds population by 2030 3 billion people will enter the middle class by 2030 Chinese investment in 49 African counties

Today we are announcing a new drive for growth in Asia Pacific, Middle East and Africa

BT Global Services is investing again to accelerate the growth of our business in Asia Pacific, Middle East and Africa Focussed on 3 investment areas 1 Greater strength in our people 2 Capability that is more competitive 3 A differentiated service experience 400+ new people including 300 in key emerging markets such as Indonesia, Vietnam, Malaysia, China, India, Africa, Turkey, Middle East 50+ new industry experts - mainly CPG, FSI, Health, Logistics Over 60 new professional services people in 11 markets New value added services licenses - enabling an extended portfolio offering Improved infrastructure - through 5 new IP and Ethernet PoPs, 4 NNIs and enhanced satellite capability Integrated core portfolio in security, cloud, mobility services, UCC and contact centres. Over 5 new industry solutions e.g. Health Analytics, Point of Sales solutions, Trace Delivering Field services across 8 countries in India, Singapore, Hong Kong, China, Japan, Turkey, Indonesia and South Africa. New Strategic Service Assurance Centre in Malaysia providing 24x7 incident management capabilities for complex customers

It is driven by our customers expanding in Asia, Middle East and Africa Where we see a target addressable market of 32bn across 3 segments Our business 47% Emerging multinationals 6% Targeted domestic 47% Global multinationals 54% Emerging multinationals 6% Targeted domestic 40% Global multinationals Our market 26% Targeted domestic 57% Emerging multinationals 17% Global multinationals 3 years ago Now 1 Global multinationals 2 Emerging multinationals 3 Targeted domestic 95% are expanding in the region Emerging economies like Indonesia, Malaysia, Turkey are witnessing high investments by global multinationals US, France, UK and Germany headquartered companies are seen to be the most active 89% are expanding in the region or globally Nearly 40% of companies in Forbes and Fortune list are headquartered in Asia, Middle East & Africa Companies headquartered in emerging markets nearly doubled in the Fortune list between 2009 and 2013 Driven by an aging population and booming middle class population A focus on the expanding health market With targeted opportunities emerging from other sectors such as education, financial services, telecom and government

1 Global multinationals Why are they expanding? Companies are aggressively expanding their production and sales footprint to tap into the increase in consumer spending Building new R&D and service facilities to take advantage of the low cost and highly skilled labour in the region As a result they need a partner who can Help them expand quickly with an understanding of the local market in terms of language, regulation and culture. Help deliver a consistent and reliable global service to their customers. Few companies can offer such worldclass, global, innovative and sustainable solutions to help us achieve our ambitious vision and, in this context, we are delighted to be able to continue our partnership with BT. From our early participation in an innovation Hot House, TNT was closely involved with the development of BT Global Trace. It is a great example of BT and a customer innovating together to help solve a major industry problem. We were also impressed with BT s extensive global network, their desire and ability to improve the services continuously through innovation, and in-country resources, particularly in the Asia Pacific region

2 Emerging multinationals Why are they expanding? Decentralise power to share resources and develop new offerings. Regional expansion within clusters like South East Asia, Middle East and Sub-Saharan Africa As a result they need a partner who can Offer increased agility and flexibility - to transform themselves from a local to a global player Improve efficiency and reducing cost, whilst offering a consistent and reliable service to their customers BT worked with us to design a managed security solution that fits Kordsa Global s global network security standardization and management requirements in order to improve our operational reliability. Important factors in selecting BT for this solution were the commitment of the management and a competitive total cost of ownership. The reason we chose BT Global Services, is that compared to its competitors, it can provide us with more comprehensive programmes and higher levels of services. We highly value the BT investment and commitment as well as its local presence in the Chinese market. BT was able to quickly identify Emirates business demands as both an airline company driven by efficiency and a customer-centric approach. This deal will significantly enhance Emirates ability to deal with customer interactions, leading to increased satisfaction for our customers and better cost control for us.

3 Targeted domestic Why are they expanding? Some key demographic trends i.e. aging population and booming middle class population The need for core infrastructure like telecom, health, financial services, e-government and telecom sectors As a result they need a partner who can Deliver best in class solution locally understanding the nuances of the diverse local markets - to become the best in their home country Keen to leverage experience from UK and specific propositions such as telehealth, e Hospital and Health Analytics BT was the ideal strategic partner for us with its unique capabilities, local team and global experience. We believe our long-term partnership will help build Ningxia General Hospital into a brand new and world-class digital hospital. BT has enabled us to serve our members more effectively, and personalise the member experience by expanding our touch points. Technology is a key driver in ensuring we manage this transformation and we engaged BT because their technology offers a robust platform that solves multiple challenges and will enhance member experience. We needed an enterprise-class network that would be able to manage the new demands and handle personal devices on to the network securely. BT helped us achieve these goals and we are proud that our students of all ages can communicate effortlessly from this improved technology

1 Greater strength in our people Recruiting industry experts Our vertical expertise enables us to meet the different needs of customers in different industry sectors Global Banking and Financial Markets Global Government Global Health Global Systems Integrators Global Telecom Markets This addresses the whole of the financial services sector. This is focused on the UK Government as well as selected global opportunities. This is focused on UK healthcare providers as well as selected global opportunities. These are global systems integrators and business process outsourcing customers. This is focused on the global wholesale market in traditional and IP traffic. Global Consumer Packaged Goods Global Pharma Chem Global Logistics Global Manufacturing Global Mining, Oil and Gas These are manufactured, consumer goods that have a quick shelf turnover. These customers produce the world s medicines. These customers focus on the distribution and transport of physical goods and people. These customers produce the world s physical goods. This addresses the needs of the extractive sector.

2 Capability that is more competitive Over the last 4 years Africa has become more connected Landscape in 2009 Forecast for 2014

3 A differentiated service experience Through our professional and field services teams Our customers increasingly require an end to end service experience BT Global Services was the most convincing of the worldwide IT companies that competed for our data centre management design contract. Whereas other companies bombarded us with a load of marketing jargon, BT Global Services brought real people and proven processes to the table. They were able to convince us with actual solid examples of their work, especially in mission-critical environments. The stakeholders who took part in the consultation were very impressed. Many had been thinking about mobility in their own areas but didn t know we could help. Now the IT team is really showing value to the organisation. BT has business experts in industry sectors ranging from pharmaceuticals to financial services. Not geeks but people who really understand the challenges.bt worked untiringly with us to create a transformational architecture extending right across the region. The agility that s providing will be an increasingly powerful enabler of our corporate growth strategy.

BT Global Services is investing again to accelerate the growth of our business in Asia Pacific, Middle East and Africa Focussed on 3 investment areas 1 Greater strength in our people 2 Capability that is more competitive 3 A differentiated service experience 400+ new people including 300 in key emerging markets such as Indonesia, Vietnam, Malaysia, China, India, Africa, Turkey, Middle East 50+ new industry experts - mainly CPG, FSI, Health, Logistics Over 60 new professional services people in 11 markets New value added services licenses - enabling an extended portfolio offering Improved infrastructure - through 5 new IP and Ethernet PoPs, 4 NNIs and enhanced satellite capability Integrated core portfolio in security, cloud, mobility services, UCC and contact centres. Over 5 new industry solutions e.g. Health Analytics, Point of Sales solutions, Trace Delivering Field services across 8 countries in India, Singapore, Hong Kong, China, Japan, Turkey, Indonesia and South Africa. New Strategic Service Assurance Centre in Malaysia providing 24x7 incident management capabilities for complex customers

BT Group plc Gavin Patterson Chief Executive Officer

Our journey 2001-2003 2003-2008 2008-2013 2013 Rehabilitation Reducing debt Restructuring the business Move to data Defend traditional Grow new wave A better business Cost transformation Investing for the future A better future Further cost transformation Customer service improvements Profitable revenue growth Delivering on investments EBITDA growth Cash flow growth 16

Foundations in place for an exciting future IT services Fibre TV & Sport IT services Mobility 4 G High-growth regions Delivering on our strategy 17

Financial objectives Drive profitable revenue growth Grow EBITDA Grow free cash flow Invest in business Reduce net debt Support pension fund Progressive dividends 18

Q2 2013/14 group results YoY change Revenue 1 - underlying ex transit 4,491m flat (0.5%) EBITDA 1 1,434m (4%) EPS 1 6.0p 2% Normalised 2 free cash flow 610m Net debt 8,074m up 294m down 963m 19 1 before specific items 2 before specific items, purchases of telecommunications licences, pension deficit payments & cash tax benefit of pension deficit payments

CIO to CEO The power of collaboration Luis Alvarez CEO, BT Global Services

The challenge of the global CIO Blocker or Builder? Available Responsive Global Responsible Empowering leadership. To enable the organisation. 21

Communications technology lets us survive and thrive Conference call in transit to airport Podcast to team Blog on LinkedIn Webex with family Board Papers ipad-based telepresence to London

Together we deliver the experience that makes this world possible QUALITY EXPERIENCE Responsible/ Secure Proper collaboration At a cost that makes sense To enable big decisions Ecosystem of Trust 23

and make the right choices to turn OR into AND Austerity OR Investment Growth OR Cost Global OR Local Progression OR Transformation Evolution OR Revolution Building our ecosystem of trust.

A new drive for growth in Asia Pacific, Middle East & Africa

South East Asia 27

BT delivering locally in South East Asia Our presence Our local investment Our customers Over 28 years experience of operating in South East Asia We have 5 geographic hubs in Singapore, Kuala Lumpur, Bangkok, Jakarta & Ho Chi Minh & network presence in all incl Philippines Employing over 940 employees We have over 300 professional services employees in Singapore offering consultancy & field services to our customers across SEA & AMEA following the integration of BT Front Line We have a global development centre in Kuala Lumpur certified by MDEC housing BT s global delivery capability & research facility one of only 8 that BT operates around the world Our Customer Innovation Showcases in Singapore, Malaysia & Jakarta are just three of 10 in the Asia Middle East & Africa region We have a series of immersive video suites in Kuala Lumpur, Singapore and Jakarta which allow our customers to experience the best in Cisco and Polycom video conferencing We recently launched our global IP exchange in Singapore We recently launched our Health care practice in SEA We are accredited locally with Cisco Gold & Avaya Platinum certification & globally with Microsoft BT in South East Asia 28

BT delivering locally in South East Asia Our presence Our local investment Our customers Greater strength in our people 130 new people 1070 employees in total (+18%) 11 new industry experts Health, FSI, logistics & GTM 20 new professional services Capability that is more competitive Deeper domestic coverage additional nodes being deployed in Malaysia, Thailand and Vietnam, Providing access to emerging markets such as Laos, Cambodia & Myanmar through extended network capability Stronger core portfolio Integration of our Cloud Compute platform with network and security services to provide seamless end-to-end solutions Industry focus Launch of new services specifically designed to address the needs of financial services, health, GTM, CPG, Logistics A differentiated service experience Strengthening up our global best practice delivery capability in Malaysia Building a 24x7 strategic service assurance centre in Malaysia BT in South East Asia 29

BT delivering locally in South East Asia Our presence Our local investment Our customers BT in South East Asia 30

Malaysia 31

BT delivering locally in Malaysia Our presence Our local investment Our customers Over 20 years experience of operating in Malaysia Employing over 340 people Recently establish a Global Development Centre in partnership with the Multimedia Development Corporation (MDeC) responsible for innovation, design & delivery 1 of 8 that BT operates globally Opened a Contract delivery shared services centre delivering critical business functions for global contracts Extensive network coverage including 2 GPOPs more than 500 ports New Customer Innovation Showcase - one of 10 in the Asia Middle East & Africa region We have some key accreditations in the industry including Platinum & FDA Partner for Oracle; Cisco Select Partner BT in Malaysia 32

BT delivering locally in Malaysia Our presence Our local investment Our customers Greater strength in our people 62 new people 32% increase (plus a further 210 from TSO) 1 new industry experts health focus Capability that is more competitive Deeper domestic coverage enhanced licence Stronger core portfolio (BT Trace, Health analytics, expedite) Industry focus building our expertise in financial services, health, education, CPG A differentiated service experience Strengthening up our global best practice delivery capability in Malaysia through a complex deal helpdesk Building a 24x7 strategic service assurance centre in Malaysia BT in Malaysia 33

BT delivering locally in Malaysia Our presence Our local investment Our customers BT in Malaysia 34

China 35

BT delivering locally in China Our presence Our local investment Our customers We have been active in China since 1995 We have offices in Beijing, Shanghai, Shenzhen and Dalian We have more than 320 employees in China BT network covers over 330 cities in China through partnership with China Telecom, China Unicom and CITIC Telecom A Service Operations Centre in Dalian - that offers 24x7x365 multilingual global incident management and support BT China has launched field services capability in house, which does the rack and stack for our MNC customers operating in China We are accredited locally with Cisco Gold & Avaya Platinum certification & globally with Microsoft In China, BT collaborates closely with leading universities in China including Jiaotong and Tsinghua University where we have a joint lab focusing on supply chain security We have 2 customer innovation showcases in Beijing and Shanghai - allowing our customers to experience our technology first hand BT in China 36

BT delivering locally in China Our presence Our local investment Our customers Greater strength in our people Recruiting over 30 new people Including 8 new industry experts Including 9 new professional services people Capability that is more competitive Deeper domestic coverage extended reach through our latest IP Connect NNI and layer 2 Ethernet connectivity through new PoP s in Beijing & Shanghai Stronger core portfolio Integration of our Cloud Compute platform with enterprise applications, network, CRM and security services to provide seamless end-to-end solutions Industry focus Launch of new services specifically designed to address the needs of financial services, health, Global Telecoms Markets, CPG, Logistics A differentiated service experience Strengthening of Field Services in China New 24x7 strategic assurance service centre in Malaysia for complex deals Improved quality of self-service with pro-active alerts and real time reporting Increasing customer satisfaction with lower incident volumes and faster mean time to repair delivered through targeted process improvements 37

BT delivering locally in China Our presence Our local investment Our customers BT in China 38

Australia 39

Our presence in Australia today Our presence Our local investment Our customers We have over 25 years experience operating in Australia We have 3 geographic hubs in Sydney, Melbourne & Perth Employing nearly 400 employees We run a 24x7 multi-lingual and multi-channel Service Operations Centre in Sydney - one of 22 that BT operates around the world We have a Security Operations Centre in Sydney so we can manage and monitor customers communication network security Our Customer Innovation Showcase in Sydney is one of 10 in the Asia Middle East & Africa region We have a series of immersive video suites in Sydney, Melbourne and Perth which allow our customers to experience the best in Cisco and Polycom video conferencing We are accredited locally with Cisco Gold & Avaya Platinum certification & globally with Microsoft 40

How we are growing our business in Australia Our presence Our local investment Our customers Greater strength in our people Recruiting over 40 new people in health, security, conferencing, unified communications and contact centres Capability that is more competitive Health: One of the fastest growing sectors in IT in Australia BT has strong experience in health IT originating in the UK with relevance for the Australian market Providing integrated care solutions such as telehealth and digital hospitals. Security: Staying ahead of security threats is a never ending challenge for IT BT s strength is in the management of security through our Global Security Operations Centre based in Sydney We partner with leading vendors for managed security solutions Conferencing: BT Dolby will transform how people communicate over the phone Unified Communications & Contact Centres: Multichannel contact centres and unified communications are yet to be fully utilised in the Australian market Providing innovative customer solutions such as BT Cloud Customer Experience Platform 41

Our customers are global multinationals and large Australian domestic organisations Our presence Our local investment Our customers 42

Hong Kong 43

BT delivering locally in Hong Kong Our presence Our local investment Our customers Q & A Over 28 years experience of operating in Hong Kong Our office serves as the regional headquarters for AMEA and falls within the sub-region of North East Asia We have 3 geographic hubs for North East Asia in Hong Kong, Greater China and South Korea Employing over 240 employees We are proud to have one of the few data centres available on Hong Kong Island in Warwick House, which covers 70,000 square feet - one of 45 that BT operates around the world We have a Operations Centre in Hong Kong so that we can manage and monitor our voice trading clients Our Customer Innovation Showcase in Hong Kong is one of 10 in the Asia Middle East & Africa region We have a series of immersive video suites in Hong Kong and Seoul, which allow our employees to experience the best in Cisco and Polycom video conferencing We are accredited locally with Cisco Gold & Avaya Platinum certification BT in Hong Kong 44

BT delivering locally in Hong Kong Our presence Our local investment Our customers Q & A Greater strength in our people Recruiting over 40 new people Including 5 new industry experts Including 7 new professional services people Capability that is more competitive Enhanced voice and collaboration services including new SIP Trunking capability for low cost voice and high quality video conferencing via our regional platform-agnostic video-conferencing bridge Stronger core portfolio integration of our Cloud Compute platform with enterprise applications, network, CRM and security services to provide seamless end-to-end solutions Industry focus Launch of new services specifically designed to address the needs of financial services, Global Telecoms Markets, CPG, Logistics A differentiated service experience New 24x7 strategic assurance service centre in Malaysia for complex deals Increasing customer satisfaction with lower incident volumes and faster mean time to repair Improved quality of service with pro-active alerts and real time reporting BT in Hong Kong 45

BT delivering locally in Hong Kong Our presence Our local investment Our customers Q & A For us at Kellett, it s all about making sure that our students have the best learning experience and we know that technology now plays a huge role in enabling that. Our goals were to ensure that our three campuses benefited from the latest in video conferencing facilities and were equipped with consistent and high speed wireless. In achieving this, we needed an enterprise-class network that would be able to manage the new demands and handle personal devices on to the network securely. BT helped us achieve these goals and we are proud that our students of all ages can communicate effortlessly from this improved technology Simon Giddings Head of Senior School, Kellett School Ciaran Harrington Head of Pok Fu Lam Prep School Kellett School BT is helping Desigual expand the business into four critical markets like Hong Kong, China, Singapore and Japan. BT s retail in a box managed network service allows Desigual to focus on the business while BT manages the complexity of technology. Desigual BT in Hong Kong 46

India 47

India s strength in the global economy is driving our customers investment strategy Our presence Our local investment Our customers Global MNCs continue to expand in India India remains an attractive destination for Global MNCs and they are now targeting Tier-II, Tier- III cities According to UN estimates FDI in India is expected to rise by 15% in 2013 Tholon s Index ranks India as the No.1 outsourcing destination yet again Indian MNCs aggressively growing overseas Pepsi planning to invest $5.5 bn in India by 2020 Philips spends $15 mn in developing innovation centre in Noida Aditya Birla Group is intending to invest around US$ 1 billion to set up a chemical/fertiliser plant in the US. According to Grant Thornton report the total value of outbound deals (Indian companies acquiring businesses outside India) between July to September 2013 were US$ 3.33 billion As per USIBC Indian investments in US has reached $11billion Domestic economy on a strong foundation As per Mckinsey, by 2025, India will be the world s 5th largest consumer market worth $785 bn Indian healthcare industry is expected to grow at a CAGR of 20% to reach $280 bn in 2020 By 2020, Indian insurance industry expected to be amongst the top three life insurance markets and top 15 non-life insurance markets BT in India 48

India is an integral part of our strategy to build and deliver world class solutions for our customers Our presence Our local investment Our customers Our Global Development Centre The centre is designed to further enhance BT s ability to design and deliver world class service to its customers and support its expansion in high growth region This centre is operated by BT TSO, the Technology, Service & Operations organisation supporting all of BT Group s lines of business. This facility is part of BT s global network of development centres in Ipswich (Adastral Park), Belfast, Cardiff and Glasgow in the UK and Kuala Lumpur Our Global Operations Centres We run a Global Operations Centre in Gurgaon to support existing centres in Hungary, Brazil and China We also run contract delivery services for our customers in Gurgaon. This centre supports our customers globally. BT in India 49

Building local capabilities to provide services with world class services with global reach, delivered locally Our presence Our local investment Our customers Over 25 years experience of operating in India. Acquired telecom licenses in 2007 We have geographic presence in New Delhi, Gurgaon, Bangalore, Mumbai,Pune & Chennai We have 24x7 Security Operations Centre in Noida and Gurgaon to manage security environments of customers Our Customer Innovation Showcase in New Delhi is one of 10 in the Asia Middle East & Africa region We work closely with our partners like Cisco, Avaya, Microsoft amongst others to provide an end-to-end solution to our customers BT in India 50

BT continues to invest in building strength and depth across India to serve our customers Our presence Our local investment Our customers Capability that is more competitive Deeper domestic coverage two additional POPs (Chennai & Delhi) and a second NNI are being deployed in India Stronger core portfolio launch of our Cloud Compute platform and integration with enterprise applications, network, CRM and security services to provide end-to-end solutions Industry focus Launch of new services specifically designed to address the needs of financial services, health, Global Telecoms Market, CPG, Logistics A differentiated service experience Strengthening of Field Services in India Improved quality of self-service with pro-active alerts and real time reporting Increasing customer satisfaction with lower incident volumes and faster mean time to repair delivered through targeted process improvements BT in India 51

BT continues to invest in building strength and depth across India to serve our customers Our presence Our local investment Our customers BT in India 52

Japan 53

BT delivering locally in Japan Our presence Our local investment Our customers 28 years experience of operating in Japan BT was the first foreign telecom company to have an office in Tokyo We run a 24x7 multi-lingual and multi-channel Network Operations Centre & Service Desk in Tokyo We have strong network capacity with more than 1,500 harmonized ports providing coverage at more than 1,200 sites. We have voice nodes in Tokyo supporting both inbound and outbound voice We have data centre space in Tokyo for managed hosting services. The facility is best in class and exceeds UTI Tier 3 requirements Our new Customer Innovation Showcase in Tokyo is one of 10 in the Asia Middle East & Africa region We have a series of immersive video suites in Tokyo allowing our customers to experience the best in Cisco and Polycom video conferencing We are accredited locally with Cisco Gold certification We are a leader in the financial services sector where we have a key OEM partnership with Hitachi for our BT Unified Trading solution We have strategic partnerships with leading Japanese IT companies BT in Japan 54

BT delivering locally in Japan Our presence Our local investment Our customers Greater strength in our people Around 20 new people including 4 new industry experts and 5 new professional services people Capability that is more competitive Stronger core portfolio launch of local Cloud Compute platform and integration with enterprise applications, network, CRM and security services to provide seamless end-to-end solutions Industry focus Launch of new services specifically designed to address the needs of financial services, health, Global Telecoms Markets, CPG & logistics A differentiated service experience Strengthening of Field Services in Japan New 24x7 strategic assurance service centre in Malaysia for complex deals Improved quality of self-service with pro-active alerts and real time reporting Increasing customer satisfaction with lower incident volumes and faster mean time to repair delivered through targeted process improvements BT in Japan 55

BT delivering locally in Japan Our presence Our local investment Our customers BT in Japan 56

Middle East & North Africa 57

BT delivering locally in MENA Our presence Our local investment Our customers Operating in the Middle-East since 1985 Main offices in UAE (Dubai) and Saudi Arabia (Riyadh). Establishing new presence in Qatar in January 2014 Employing over 260 employees across the region, with on the ground staff also in Morocco, Egypt, Oman and Pakistan Providing services in 21 countries through 11 Points of Presence Stronger core portfolio in security, Contact Centre, Unified Communications, Cloud Compute, BT has created its first R&D Centre in the Middle East and Africa in collaboration with Khalifa University and Etisalat. Strong partnership with global vendors across the region including Cisco and Avaya Gold Certification, Our Customer Innovation Showcase in Dubai will be one of 10 in the Asia Middle East & Africa region, 58

BT delivering locally in MENA Our presence Our local investment Our customers Greater strength in our people Recruiting around 20 new people including new industry experts professional services people Establishing BT s Global Centre of Excellence for the airlines industry in the UAE Capability that is more competitive Deeper regional coverage with new POPs being deployed and improved VSAT capability. Stronger core portfolio - establishment of a regional cloud compute capabilities to service the requirements of Global Multinationals and Emerging Multinationals operating in the region - integrated with network, collaboration, CRM and security services to provide seamless end-to-end solutions Industry focus Launch of new services specifically designed to address the needs of financial services, health, GTM, CPG, Logistics A differentiated service experience Increasing the service management capability across the region in terms of tools, people and processes BT in MENA 59

BT delivering locally in MENA Our presence Supporting over 200 major enterprise customers at more than 1,300 locations. Our local investment Our customers 3 of the top 5 airlines in the region are customers of BT 3 of the major regional banks are customers of BT 42 new global customers trusts BT for critical infrastructure across the region BT in MENA 60

Sub Saharan Africa 61

BT delivering locally in Sub Sahara Africa Our presence Our local investment Our customers Over 21 years experience of operating in Sub-Saharan Of the 53 countries in Africa BT has legal entities in 32 We have 3 regional offices and network PoPs in the key metropolitan areas of Johannesburg, Cape Town and Durban Networks and customer support delivered from service centre in Durban, one of the first ITIL compliant service centres in South Africa. Providing 24 x7 x 365. Servicing Middle East, Africa, Turkey BEE, committed contribution minded investment in local market development SA MPLS and Ethernet extensions providing national coverage Voice node providing national voice network and SIP trunking with own number range and portability BT Sub-Saharan Africa 62

Investing in the future Our presence Our local investment Our customers Investing in social responsibility programmes, supporting over 15 NGOs, a graduate programme and an international trade development initiative with the UK Introducing innovative products and solutions from our rich global portfolio, covering all areas, including Unified Communications, Next Generation Voice and Video and Global Ethernet. New offices in Durban and Johannesburg Building in-country expertise to help drive growth across the region including highly skilled BT Advise professional services consultants. Centre of Excellence - Customer Innovation Showcase in Johannesburg which is one of 10 in the Asia Middle East & Africa region We have a series of immersive video suites in Johannesburg, Durban and Cape Town which allows our customers to experience the best in Cisco and Polycom video conferencing BT Sub-Saharan Africa 63

BT thought leadership in the in ICT market through local investment Our presence Our local investment Our customers In February 2012, we announced the following investments in our own infrastructure: International routing facility at Melkbostrand SAT3 landing station, providing for direct access to subsea cable, connecting Africa to the world Investment into FibreCo s new network connection between Cape Town and Johannesburg, turning BT into the first global operator in control of its own network infrastructure in South Africa Network interconnection with Internet Solutions, expanding network reach into Angola, Botswana, Ghana, Kenya, Mauritius, Mozambique, Namibia, Nigeria, Tanzania, Uganda, Zambia and Zimbabwe Data Centre services deployed via own infrastructure and strategic partner facilities in the region BT Sub-Saharan Africa 64

Investing in the future Our presence Our local investment Our customers Today we are announcing: Greater strength in our people Recruiting around 30 new people including 5 industry experts and 4 new professional services consultants Capability that is more competitive Deeper domestic coverage three new additional POPs being deployed on our fibre backbone, improved access, new optical and internet services, and VSAT coverage Stronger core portfolio launch of our Cloud Compute platform with access nodes in the 3 major cities and integration with enterprise applications, network, CRM and security services to provide seamless end-to-end solutions Industry focus Launch of new services specifically designed to address the needs of financial services, health, Global Telecoms Markets, CPG, Logistics A differentiated service experience Strengthening of Field Services capability in South Africa Improved quality of self-service with pro-active alerts and real time reporting Increasing customer satisfaction with lower incident volumes and faster mean time to repair delivered through targeted process improvements BT Sub-Saharan Africa 65

BT delivering locally in South Africa Our presence Our local investment Our customers BT Sub-Saharan Africa 66

Business relationships providing global connectivity Our presence Our local investment Our customers BT Sub-Saharan Africa 67

Eastern Mediterranean 68

BT delivering locally in Turkey Our presence Our local investment Our customers Operating since the mid 2000 s in Turkey Currently employing 40 people Istanbul a regional hub serving customers in Turkey, Greece, Israel, Malta and Cyprus Run a 24x7 Network Operations Centre in Istanbul Licensed for; Data, Internet, Satellite and Voice services in Turkey ISO27001 certified for licensed services BT in Turkey 69

BT delivering locally in Turkey Our presence Our local investment Our customers Greater strength in our people Recruiting around 15 new people Including 1 new industry expert Including 3 new professional services people Capability that is more competitive Deeper domestic coverage additional POPs being deployed and improved access through new partnerships Stronger core portfolio launch of global voice VPN services, SIP Trunking and cross portfolio integration across network, unified comms and CRM services to provide seamless end-to-end solutions Industry focus Launch of new services specifically designed to address the needs of financial services, health, GTM, CPG, Logistics A differentiated service experience Strengthening of Field Services in Turkey Improved quality of self-service with pro-active alerts and real time reporting Increasing customer satisfaction with lower incident volumes and faster mean time to repair delivered through targeted process improvements BT in Turkey 70

BT delivering locally in Turkey Our presence Our local investment Our customers BT in Turkey 71

A new drive for growth in Asia Pacific, Middle East & Africa