BT in review

BT is one of the world’s leading communications services companies and serves customers in 170 countries. Our vision is to be dedicated to helping customers thrive in a changing world.

 
  We are meeting the needs of our different customer groups – major corporates, government and financial institutions; consumers; small and medium-sized enterprises; and other communications providers – through four customer-facing lines of business, supported by two internal functional units.
  Business unit   2008 focus
  BT Global Services      
  BT Global Services serves corporate, carrier and government organisations across the world, providing high-performance managed networked IT services, applications management, professional services and outsourcing solutions.   arrow Over 60% of Fortune Global 500 companies and over 65% of FTSE 100 companies are our customers.
    arrow With EBITDAa margins of 11.2%, we are making progress towards our 15% target.
  BT Retail  
  BT Retail serves consumer customers and small and medium-sized enterprises in the UK, providing a range of innovative products and services. It also comprises BT Ireland and our Enterprises division.   arrow BT is the UK’s most popular broadband retailer.
    arrow Around 1 million businesses rely on us.
  BT Wholesale  
  BT Wholesale brings economies of scale to 700+ UK communications companies, through a diverse portfolio ranging from nationally available broadband, voice and data connectivity services and interconnect, to bespoke, fully managed network outsourcing and value-added solutions.   arrow Four-year outsourcing deal with the Post Office.
  arrow Provision of voice network management services to Virgin Media.
   
  Openreach  
  Openreach is responsible for the crucial ‘first mile’ connecting communications providers’ customers to their local telephone exchange, giving them equal, open and economic access to the UK network.   We achieved significant progress in enhancing the competitive environment in the UK communications services market:
    arrow 4.3 million unbundled non-BT lines in the UK.
    arrow Over 40% improvement in service provision lead times.
  BT Design and BT Operate      
  BT Design is responsible for the design and deployment of the platforms, systems and processes which support our products and services, and BT Operate is responsible for their operation.
   
a before specific items and leaver costs.


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  Our strategy
 
 
Partnerships
  Increased focus on providing global, real-time and open platforms and putting the customer at the heart of everything we do
 
 
         
  Our aims       Our achievements
         
 
             
  Our ongoing commitment is to increase shareholder value by…     £7.6bn   paid to shareholders in past 5 years
           
           
               
 
             
  … driving profitable growth in new wave products and services such as…     9%   growth in new wave revenue
  arrow  global  
 networked 
 IT services
arrowconvergent mobility 
  solutions
   
  arrow  broadband          
               
 
             
  … maximising the potential of our traditional business through a combination of…     £1.5bn   cost savings achieved in past 3 years
  arrow  enhanced quality of 
 service
arrow  innovative pricing    
  arrow  creative marketing arrow  cost efficiency    
               
 
             
  ... transforming our networks, systems and services for the twenty-first century…     40%   of core 21 CN infrastructure built
           
           
               
 
             
  … and creating long-term partnerships with our customers.     £1.8bn   projected value of wholesale managed network services contracts signed in 2008
         
           
           
           
               


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  Full year dividend chart    
       
arrow

15.8p
full year proposed dividend
per share – up 5%

  Full year dividends per
share (pence)
 
 
 
  How we performed in 2008
 
   
       
arrow Revenue of £20,704 million,
up 2%
arrow Earnings per share before specific
items of 23.9 pence, up 5%
       
arrow EBITDA before specific items
of £5,784 million, up 3%
arrow Free cash flow of £1,503 million
up 11%
       
arrow Profit before taxation and specific
items of £2,506 million
arrow Full year proposed dividend of
15.8 pence per share up 5%
       
   
  Key performance indicators
 
   
         
The key performance indicators against which we measured the success of our strategy in 2008 were: customer service, earnings per share before specific items, and free cash flow.
         
         
  Customer service  Earnings per share 
 before specific items
  Free cash flow
      (pence)    
arrow  9%  Earnings chart arrow  £1,503
  
 increase in ‘right 
 first time’
    million - up 11%
       
       
       
         
         
  Other targets we set for 2008 

How we performed   

 
   
  In addition to our stated KPIs, we also said in 2008 we would aim to:  
  arrow continue to grow revenue and EBITDA before specific items tick
 
   arrow  accelerate the strategic transformation of our business  tick
 
   arrow  introduce a two-year £2.5 billion share buy back programme  tick
 
   arrow  maintain our solid investment grade credit rating  tick
 
   arrow  invest in the growth of the business  tick
 
       


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  Our structure  
  BT Group  
  BT Global Services   BT Retail   BT Wholesale   Openreach  
                 
  BT Design  
                 
  BT Operate  
     
  2008 external revenue by line of business (%)      
  2008 external revenue by line of business Box   BT Global Services
     
Box   BT Retail
     
Box   BT Wholesale
     
Box Openreach
   

 
   
  What we do
   
   
   
  Our capabilities range from:
         
  arrow   the provision of a single, domestic telephone line in the UK to the development of an innovative global network infrastructure for the twenty-first century  
  arrow  

mission-critical global networked IT services for multinationals to broadband packages for the home

 
  arrow   next-generation TV to Voice over IP services  
  arrow   innovative calls packages for homes and businesses to value-added services such as online trading communities and comprehensive IT support  
         
         
         
         
         
   
  Who we do it for
   
   
   
  2008 revenue by customer segment (%)
  2008 revenue by customer segment (%)
             
  Box   Major corporate Box   Consumer
             
  Box   Business Box   Wholesale/
carrier
             
             
   
  Where we operate
   
           
           
  Non-UK regional revenue growth in 2008  
  arrow   15%    
      Europe (excluding UK)    
           
  arrow   19%    
Americas  
           
  arrow   66%    
Asia-Pacific  
   
   
   
   
   
   
   

                 
  The way we do business              
                   
                 
  Our values are:   In 2008, BT was ranked as the top company in the telecommunications sector in the Dow Jones Sustainability Index for the seventh year in a row.   ISO logo We have ISO 9001 certification for most of our operations in the UK and around the world.
         
  Trustworthy:  we do what we say we will    
         
  Helpful:

we work as one team

       
        arrow

our UK CO2 emissions are 58% below their 1996 levels and we are committed to achieving an 80% reduction from our 1996 baseline by 2016

       
  Inspiring: we create new    
    possibilities       We have recently won the following awards
              e_logo
  Straightforward: we make things clear        
            Company of the year awards  
  Heart: we believe in what we do   arrow we commit a minimum of 1% of our UK pre-tax profits in cash and in kind to activities which support society
           
           
   
   
   
  Dow Jones logo  
   

 

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