Transcript Document
BT Group plc
Annual General Meeting
19 July 2007
Sir Christopher Bland - Chairman
BT Group – Financial headlines
FY
2006/7 Group revenue £20.2bn
EBITDA (1) £5.6bn
Earnings per share (1) 22.7p
4% 2% 16%
Full year dividend (1) Before specific items 15.1p
27%
EPS – Five years of continuous growth pence 24 20 16 12 8 EPS 22.7p up 16% 4 0 2001/2 2002/3 2003/4 2004/5 2005/6 UKGAAP, April 2001 – March 2004, before exceptional items and goodwill from continuing activities IFRS, April 2004 – March 2007, before specific items 2006/7
Distribution policy • •
Dividends
Two thirds payout ratio reached one year early pence 16 14 Expect to increase dividends, taking into account our earnings growth, cash generation and our ongoing investment needs 12 10 8 •
Share buy back
New
£2.5bn
programme - expected completion March 2009 6 4 2 0 Dividend 15.1p up 27% 2001/2 2002/3 2003/4 2004/5 2005/6 2006/7 Returned £4.8bn in dividends and share buyback over the last 5 years
Share price 150 140 130 120 110 100 90 BT Share price 231.75p on 14/07/06 BT FTSE100 BT Share price 334.25p on 16/07/07
44% 17%
BT Group – 2001 headlines
Bloomin’ Terrible BT turmoil as shares slump 66% in a year
20 Mar ‘01
BT fights to tame £30bn debt
23 Mar ‘01
BT’s wrong numbers
22 Mar ’01
BT poised for cash call dash
26 Mar ‘01
BT at the end of the line
27 Mar ‘01
BT buried in debt
Company seeks to refinance loans 23 Mar ‘01
My original checklist
BT Group strategy
Defend traditional
– Improved service – Price innovation – Reduce costs / improve margin – Aggressive & creative marketing
Long term Partnership with our customers 21 st Century Network Grow new wave
– Networked IT services – Broadband – Mobility
... Consistent delivery
Strategy in action
Delivering today Delivering tomorrow
• Broadband – 11m connections and over 99% coverage • Networked IT services - £4.4 billion annual revenue • Global capability in over 170 countries • BT Vision – multi-channel TV with no compulsory subscription • 21 st century network – leading the world in building a broadband IP network for all • Transformation into a leading service provider
The way we work BT made Company of the Year by Business in the Community Open, constructive relationship with the regulator
Board changes
Board changes
Board changes
Board changes
Board changes
Board changes
Board changes
Board changes
Board changes
BT Group 2006/7 headlines
Magic £3 mark
17 Dec ‘06
A Perfect Day
21 Dec ‘06
BT Bonanza
18 May ‘07
Internet King BT to return £2.5 billion
18 May ‘07
Bland leaves BT set to reach for the sky
18 May ‘07
BT regains top spot in broadband
18 May ‘07
Sir Christopher Bland - Chairman
Bringing it all together
Annual General Meeting
19 July 2007
Ben Verwaayen
Chief Executive
BT Group strategy
Defend traditional
– Improved service – Price innovation – Reduce costs / improve margin – Aggressive & creative marketing
Long term Partnership with our customers 21 st Century Network Grow new wave
– Networked IT services – Broadband – Mobility
... Consistent delivery
FY 2006/7 – Revenue UP 4% £bn
6.3
13.2
7.4
12.8
+ 17% - 3%
Revenue – New wave driving transformation £bn 30% CAGR in 4 years Mobility & Other Broadband Networked IT Services CAGR + 44% + 71% + 20%
BT Global Services – 2006/7 order intake
£9.3bn
Signed 858 new customers
Broadband
Retail The UK’s number 1 broadband retailer
by market share
ISP of the year
Mac Magazine 2006 Awards
Most trusted ISP 2007
Reader’s Digest
Wholesale
>
10.7
million connections at 31/3/07 Mn
11 10 9 8 1 0 3 2 5 4 7 6
LLU Other ISP’s Retail *
BT Total Broadband
Home IT advisor
- 40,000 users
VoIP
- 1.4m registered users
BT Digital Vault
- 125,000 users
Home hubs
- Over 1 million
BT Vision
- National marketing campaign under way
Delivering Value for our customers •
Corporates
– Networked IT services – Local service, global delivery – Expanded portfolio of capabilities •
Consumer
– BT Together – BT Total Broadband – BT Fusion & BT Vision •
Business
– BT Business One Plan – BT IT Manager – BT Office Anywhere •
Other operators
- Managed Service - Broadband - Local access for telephony and broadband
Higher quality Simpler Faster More efficient
From traditional telco… Keys to our transformation
Real time Global Open
… to leading services provider with global capabilities
Transformation to Service Provider •
To enable
– Customer to focus on what they do best – Software solutions – Global delivery and reach •
To reduce
– Complexity – Cost base – Time to market •
To deliver
– Right first time service – Where our customers are – A simplified organisation •
To improve
– Customer service – Efficiency – Free cash flow
Bringing it all together • • • • Strategy built around convergence & innovation – 17% growth in new wave revenues Corporate transformation – From traditional telco to leading services provider with global capabilities Strong momentum with track record of delivery – – –
Twenty
quarters of
EPS
growth
Thirteen
quarters of
revenue
growth
Five
quarters of
EBITDA
growth Continue to grow revenue,
EBITDA*, EPS*
and
dividends
in 2007/8 * Before specific items and leavers
BT Group plc
Annual General Meeting
19 July 2007
Resolution 1
Reports and accounts
Proxy Votes
For Against Vote Withheld
4,690,961,416 7,879,073 1,540,670
Resolution 2
Directors’ remuneration report
Proxy Votes
For Against
3,039,747,846 130,725,306
Vote Withheld
1,529,908,007
Resolution 3
Final Dividend
Proxy Votes
For Against Vote Withheld
4,698,432,613 678,005 1,270,541
Resolution 4
Re-elect Sir Christopher Bland
Proxy Votes
For Against Vote Withheld
4,665,303,524 32,179,017 2,898,618
Resolution 5
Re-elect Andy Green
Proxy Votes
For Against Vote Withheld
4,676,367,376 18,232,668 5,781,115
Resolution 6
Re-elect Ian Livingston
Proxy Votes
For Against Vote Withheld
4,678,250,916 19,041,422 3,088,821
Resolution 7
Re-elect John Nelson
Proxy Votes
For Against Vote Withheld
4,685,502,100 11,541,397 3,337,662
Resolution 8
Elect Deborah Lathen
Proxy Votes
For Against Vote Withheld
4,683,490,802 12,907,229 3,983,128
Resolution 9
Elect François Barrault
Proxy Votes
For Against Vote Withheld
4,684,502,467 11,963,701 3,914,991
Resolution 10
Reappointment of auditors
Proxy Votes
For Against Vote Withheld
4,679,050,873 7,394,391 13,935,895
Resolution 11
Remuneration of auditors
Proxy Votes
For Against Vote Withheld
4,678,136,507 7,977.341
14,267,311
Resolution 12
Authority to allot shares
Proxy Votes
For Against Vote Withheld
4,655,261,395 41,386,501 3,733,263
Resolution 13
Authority to allot shares for cash*
*Special resolution Proxy Votes
For Against Vote Withheld
4,686,626,092 9,444,399 4,310,668
Resolution 14
Authority to purchase own shares*
*Special resolution Proxy Votes
For Against Vote Withheld
4,609,658,522 6,594,827 84,127,810
Resolution 15
Authority to use electronic communications*
*Special resolution Proxy Votes
For Against Vote Withheld
4,680,669,745 12,524,737 7,186,677
Resolution 16
Authority for political donations
Proxy Votes
For Against Vote Withheld
4,579,323,754 62,870,366 58,187,039
Poll on Resolution X
Using your Form of proxy/Admission card:
• If voting all shares “ for ”, place a tick ( ) in “ For ” box • If voting all shares “ against ”, place a tick ( ) in “ Against ” box • If voting all shares “ vote withheld ”, place a tick ( ) “ Vote withheld ” box in • If splitting vote, indicate the number of shares voting “ for ” “ against ” and “ vote withheld ” • Please sign the card • Place completed card in ballot box as you leave • Please ask a marshal if you have any questions
Poll on Amendment to Resolution X
Using your voting paper:
• If voting all shares “ for ” amendment, tick “ For ” box in Column 2, alongside appropriate resolution number • If voting all shares “ against ” amendment, tick “ Against ” box in Column 3 • If splitting vote, enter the appropriate number of shares in Columns 2 and 3 • Write name, address and account number in Box 1 • Sign the voting paper in Box 2 and hand it to marshal at end of row • Please ask a marshal if you have any questions
Poll on Procedural Resolution X
Using your voting paper:
• Delete Box A • If voting “ for ” procedural resolution, place a tick ( ) headed “ For ” in Box 1 • If voting “ against ” procedural resolution, place a tick ( ) headed “ Against ” in Box 2 • If splitting vote, enter the appropriate number of shares in Boxes 1 and 2 • Write name, address and account number in Box 3 • Sign the voting paper in Box 4 and hand it to marshal at end of row • Please ask a marshal if you have any questions`
BT Group plc
Annual General Meeting
19 July 2007