Profit and loss account Years ended 31 March 1997 £m   1998 £m   1999 £m   2000 £m   2001 £m   Total turnover – ongoing activities 15,021   16,039   18,223   21,903   29,666   Total turnover – discontinued activities 2,358   1,372   –   –   –   Total turnover, including discontinued activities 17,379   17,411   18,223   21,903   29,666   Group’s share of associates’ and joint ventures’ turnover (2,444 ) (1,771 ) (1,270 ) (3,364 ) (9,937 ) Trading between group and principal joint venture –   –   –   176   698   Group turnover – ongoing activities 14,935   15,640   16,953   18,715   20,427   Other operating income (a) 106   372   168   242   393   Operating costs (b)(c)(d)(e)(f)(g)(h) (11,796 ) (12,355 ) (13,305 ) (15,359 ) (20,759 ) Group operating profit 3,245   3,657   3,816   3,598   61   Group’s share of operating profit (loss) of associates and joint ventures (i)(j) 184   (196 ) (342 ) (400 ) (397 ) Total operating profit (loss):                         Ongoing activities 3,209   3,436   3,474   3,198   (336 )     Discontinued activities 220   25   –   –   –     3,429   3,461   3,474   3,198   (336 ) Profit on sale of fixed asset investments and group undertakings (k) 8   63   1,107   126   619   Net interest payable (l) (174 ) (310 ) (286 ) (382 ) (1,314 ) Premium on repurchase of bonds (60 ) –   –   –   –   Profit (loss) on ordinary activities before taxation 3,203   3,214   4,295   2,942   (1,031 ) Tax on profit (loss) on ordinary activities:                         Corporation and similar taxes (1,102 ) (977 ) (1,293 ) (897 ) (652 )     Windfall tax –   (510 ) –   –   –   Profit (loss) on ordinary activities after taxation 2,101   1,727   3,002   2,045   (1,683 ) Minority interests (24 ) (25 ) (19 ) 10   (127 ) Profit (loss) for the financial year 2,077   1,702   2,983   2,055   (1,810 ) Average number of shares used in basic earnings per share (millions) 6,332   6,387   6,442   6,488   6,525   Basic earnings (loss) per share 32.8 p 26.6 p 46.3 p 31.7 p (27.7 )p Diluted earnings (loss) per share 32.2 p 26.2 p 45.3 p 30.9 p (27.7 )p Basic earnings (loss) per share from ongoing activities 30.8 p 26.3 p 46.3 p 31.7 p (27.7 )p Diluted earnings (loss) per share from ongoing activities 30.2 p 25.9 p 45.3 p 30.9 p (27.7 )p Dividends per share (including 1997 special dividend of 35p) 54.85 p 19.0 p 20.4 p 21.9 p 8.7 p Dividends per share, cents (including 1997 special dividend of 56c)(m) 87.8 c 31.5 c 33.0 c 35.7 c 14.0 c Profit before goodwill amortisation, exceptional items and taxation 3,203   2,976   3,274   3,100   2,072   Basic earnings per share before goodwill amortisation and exceptional items 32.8 p 31.7 p 35.0 p 34.2 p 20.5 p Diluted earnings per share before goodwill amortisation and exceptional items 32.2 p 31.2 p 34.2 p 33.4 p 20.2 p (a) Including MCI merger break-up fee net of expenses in 1998 –   238   –   –   –   (b) Including redundancy charges 367   106   124   59   104   (c) Including exceptional costs relating to the disengagement from MCI –   –   69   64   –   (d) Including exceptional costs relating to the proposed closure of the BT Cellnet analogue network in 2000 –   –   –   47   –   (e) Including exceptional costs relating to impairment in goodwill –   –   –   –   3,000   (f) Including exceptional credit for rates refunds, relating to prior years –   –   –   –   193   (g) Including exceptional costs relating to the write off of Viag Interkom IT systems –   –   –   –   43   (h) Including exceptional costs relating to the write off of subscriber acquisition costs –   –   –   –   7   (i) Including exceptional costs relating to the write off of subscriber acquisition costs –   –   –   –   132   (j) Including exceptional costs relating to impairment in goodwill –   –   –   –   200   (k) Including gain on MCI shares sold in 1998 –   –   1,133   –   –   (l) Including exceptional credit for interest receivable on rates refunds, relating to prior years –   –   –   –   25   (m) Dividends expressed in US currency have been converted at the actual exchange rate used in the payment of dividends to US shareholders.
	Cash flow statement Years ended 31 March 1997 £m   1998 £m   1999 £m   2000 £m   2001 £m   Cash flow from operating activities 6,185   6,071   6,035   5,849   5,887   Dividends from associates and joint ventures 7   5   2   5   10   Returns on investments and servicing of finance (220 ) (160 ) (328 ) (163 ) (727 ) Taxation paid (1,045 ) (1,886 ) (630 ) (1,311 ) (669 ) Capital expenditure and financial investment (2,820 ) (3,108 ) 1,046   (3,752 ) (8,442 ) Acquisitions and disposals (252 ) (1,501 ) (1,967 ) (6,405 ) (13,754 ) Equity dividends paid (1,217 ) (3,473 ) (1,186 ) (1,364 ) (1,432 ) Cash inflow (outflow) before management of liquid resources and financing 638   (4,052 ) 2,972   (7,141 ) (19,127 ) Management of liquid resources (504 ) 2,247   (2,447 ) 1,236   (480 ) Financing (224 ) 1,794   (458 ) 5,959   19,735   Increase (decrease) in cash for the year (90 ) (11 ) 67   54   128   Decrease (increase) in net debt for the year 849   (3,860 ) 3,146   (6,582 ) (18,942 )
	Balance sheet At 31 March   1997 £m   1998 £m   1999 £m   2000 £m   2001 £m   Intangible fixed assets   –   –   742   5,777   18,380   Tangible fixed assets   16,802   17,252   17,854   18,163   21,625   Fixed asset investments   1,273   1,708   1,832   5,878   5,204   Net current liabilities   (2,667 ) (2,637 ) (495 ) (7,115 ) (11,143 ) Total assets less current liabilities   15,408   16,323   19,933   22,703   34,066   Loans and other borrowings falling due after one year   (2,693 ) (3,889 ) (3,386 ) (5,354 ) (18,775 ) Provisions for liabilities and charges   (1,391 ) (1,426 ) (1,391 ) (1,056 ) (723 ) Minority interests   (208 ) (223 ) (216 ) (498 ) (499 ) Total assets less liabilities   11,116   10,785   14,940   15,795   14,069   Called up share capital   1,589   1,603   1,617   1,627   1,646   Share premium account   675   892   1,206   1,580   2,195   Other reserves   777   776   774   933   884   Profit and loss account   8,075   7,514   11,343   11,655   9,344   Total equity shareholders’ funds   11,116   10,785   14,940   15,795   14,069   Total assets   25,062   23,285   27,962   37,588   54,799
	US GAAP Years ended 31 March 1997 £m   1998 £m   1999 £m   2000 £m   2001 £m Group operating profit (loss) 3,398   3,243   3,356   2,990   (633 ) Income (loss) before taxes 3,326   2,791   3,745   2,096   (1,959 ) Net income (loss):                         Ongoing activities 2,069   1,503   2,589   1,393   (2,357 )     Discontinued activities 80   (56 ) –   –   –     2,149   1,447   2,589   1,393   (2,357 ) Average number of ADSs used in basic earnings per ADS (millions) 633   639   644   649   653   Basic earnings (loss) per ordinary share 33.9 p 22.7 p 40.2 p 21.5 p (36.1 )p Diluted earnings (loss) per ordinary share 33.6 p 22.3 p 39.3 p 21.0 p (36.1 )p Basic earnings (loss) per share from ongoing activities 32.6 p 23.5 p 40.2 p 21.5 p (36.1 )p Diluted earnings (loss) per share from ongoing activities 32.1 p 23.2 p 39.5 p 21.0 p (36.1 )p Basic earnings (loss) per ADS £3.39   £2.27   £4.02   £2.15   £(3.61 ) Diluted earnings (loss) per ADS £3.36   £2.23   £3.93   £2.10   £(3.61 ) At 31 March                     Total assets 27,239   27,951   29,323   38,481   55,361   Ordinary shareholders’ equity 11,588   12,615   13,674   13,634   10,231