sir michael rake chairman business performance revenues up by 2% to £20.7 billion pre-tax profit*...
TRANSCRIPT
Sir Michael RakeChairman
Business Performance
Revenues up by 2% to £20.7 billion
Pre-tax profit* £2.5 billion
Earnings per share* up 5% at 23.9p
Free cash flow up 11% at £1.5
billion
* Before specific items
8.5
10.411.9
15.115.8
2003/4 2004/5 2005/6 2006/7 2007/8
DividendsDividends per share
Charitable support
Bringing it all togetherfor London 2012
Ian LivingstonCEO
Earnings per share (1) 23.9p
Group revenue £20.7bn
EBITDA (1) £5.8bn
FY 2007/8 – Group financial headlines
(1) Before specific items
11%
3%
2%
5%
Free cash flow £1.5bn
5%Dividend 15.8p
17
18
19
20
21
2003/4 2004/5 2005/6 2006/7 2007/8
£bn
Group Revenue – 13% growth over 4 years
* Before specific items
Earnings per Share* - 41% growth in 4 years
1415161718192021222324
2003/4 2004/5 2005/6 2006/7 2007/8
Pence per share
Strength in mix of customers and businesses
37%
13%
24%
26%
ConsumerCorporate
CarrierBusiness
FY 2007/8 – revenue by customer
North America
3,800 employees
Revenue £730m
UK
91,300
employees
Revenue
£17.2bn
Russia / CEE
400 employees
Revenue £28m
Asia Pac
5,000 employees
Revenue £132mMEA
200 employees
Revenue £34m
Latin America
900 employees
Revenue £76m
Western Europe
10,500 employees
Revenue £2.6bn
112,000 BT peopleRevenue £20.7bn in
07/08
BT is truly a global company
Corporate
3000
4000
5000
6000
7000
8000
£m
2003/4 2004/5 2005/6 2006/7 2007/8
Corporate Revenue
31%
growth
Strong growth in revenue driven by very strong global order book
Carrier - Openreach
• 28,000,000 lines• 13,000,000 broadband connections• Service to over 450 communicator
providers
• Reduced access network faults by 10%• Provision and repair lead times halved
Broadband availability by country
Source : OECD Telecommunications Database
DSL Coverage by country June 2007
100%
99%
97%
95%
90% 78
%
10%
82%
OECDWeighte
dAverage
Carrier - BT Wholesale
Affected by regulatory change
Decline in low margin transit
Introduced family of 21CN ‘smart’ broadband services
• Higher speeds• Flexible bandwidth• Quality control for
video
£1.8bn of contracts signed in 2007/8
BT BusinessHelping businesses do what they do best
BT Business - Tradespace
Revenue growth
From 5% decline to 5% growth (annual 05/06 to 07/08)
BT Business
%
Consumer
Serving 15 million households
UK’s No.1 retail broadband provider- 4.4m connections
Value for moneyInnovative productsService
Consumer - delivering value for money
Calls – Package prices more than halved in 2 years
- Anytime from £14.50 to £5.95- Evenings/Weekends from £5.50 to £2.70
Broadband – Prices halved since 2001- Speeds up 16 fold
And – Calling BT is now free
Consumer - BT Total Broadband – innovative productsBT ToGo
Security & Storage
Entertainment
Gaming
Home IT advisor
Monitoring and
Control
Wireless
Networks
BT Broadband Talk
No. 1 for customer service
Investing in platforms, globally
Agility
Priorities
Continue to deliver for customers and shareholders
Customer service
• Dissatisfaction with telephony repair reduced by 25%
• Broadband repair & help – dissatisfaction reduced by a third
• 17% reduction in complaint volumes
• Abandoned calls halved
But – a lot more to do
Next Generation Broadband: A bold vision for the UK UK’s biggest super fast
broadband investment: £1.5 bn
Accessible by up to 10 million homes by 2012
Range of speeds up to 100mbps: with >1,000mbps potential
BUT we need the barriers to investment removed
2
What it means for consumersTODAY… TOMORRO
W…Fast internet...Instant messaging…
VoIP…
BT Vision…iPlaye
r…
Multi viewing HD TV...
Advanced HD gaming…HD video
conferencing…
A world of new possibilities
8
The Mail
The Sun
No. 1 for customer service
Investing in platforms, globally
Agility
Priorities
Continue to deliver for customers and shareholders
