Summary group profit and loss account
for the year ended 31 March 2003

	Before goodwill amortisation and exceptional items	Goodwill amortisation and exceptional items(a)	Total	Total(b)
	2003	2003	2003	2002
	£m	£m	£m	£m
Total turnover	20,182	-	20,182	24,642
Less group’s share of ventures’ turnover, excluding trading between group and principal joint venture	(1,455)	-	(1,455)	(4,083)
Group turnover	18,727	-	18,727	20,559
Group operating profit (loss)	2,790	(218)	2,572	(479)
Group’s share of operating profit (loss) of ventures	181	148	329	(1,381)
Total operating profit (loss)	2,971	(70)	2,901	(1,860)
Profit on sale of fixed asset investments and group undertakings	-	1,691	1,691	4,389
Profit on sale of property fixed assets	11	-	11	1,089
Amounts written off investments	(7)	-	(7)	(535)
Net interest payable	(1,146)	(293)	(1,439)	(1,622)
Profit before taxation	1,829	1,328	3,157	1,461
Taxation	(598)	139	(459)	(443)
Profit after taxation	1,231	1,467	2,698	1,018
Minority interests	(5)	(7)	(12)	(23)
Profit for the financial year	1,226	1,460	2,686	995
Dividends (c)			(560)	(173)
Retained profit			2,126	822
Earnings per share			31.2p	12.0p
Dividends per share			6.5p	2.0p
Total operating profit from continuing activities before goodwill amortisation and exceptional items			2,971	2,663
Earnings per share from continuing activities before goodwill amortisation and exceptional items			14.2p	8.8p

(a) Includes goodwill amortisation of £22 million and net exceptional profits of £1,350 million before taxation and minority interests. These net exceptional profits relate principally to the net profit on sale of our stake in Cegetel of £1,216 million and the release of exit related cost provisions of £150 million, offset by a charge of £198 million relating to property rationalisation costs.

(b) Includes goodwill amortisation of £405 million and net exceptional profits of £753 million before taxation and minority interests. These net exceptional profits relate principally to the net profit on disposal of discontinued activities of £4,368 million and the sale of property fixed assets of £900 million. These profits were principally offset by goodwill and asset impairments and exit related costs of £4,027 million.

(c) In addition to the cash dividend for the year ended 31 March 2002 of £173 million there was a demerger distribution of £19,490 million, representing the net assets of mmO2 at the date of demerger.

Total turnover Products and services sold to customers by BT, together with our share of our ventures’ sales. Net interest payable Interest paid on borrowings less interest received on short term investments. Earnings per share Our profit for the financial year divided by the average number of shares in issue during the period. This summary financial statement was approved by the Board on 21 May 2003 and was signed on its behalf by: Sir Christopher Bland  Chairman Ben Verwaayen  Chief Executive Ian Livingston  Group Finance Director