Sir Christopher Bland Chairman BT Group plc Delivering today Investing for tomorrow.
-
Upload
thalia-halcomb -
Category
Documents
-
view
214 -
download
0
Transcript of Sir Christopher Bland Chairman BT Group plc Delivering today Investing for tomorrow.
![Page 1: Sir Christopher Bland Chairman BT Group plc Delivering today Investing for tomorrow.](https://reader030.fdocuments.in/reader030/viewer/2022032701/56649c785503460f9492ce1b/html5/thumbnails/1.jpg)
![Page 2: Sir Christopher Bland Chairman BT Group plc Delivering today Investing for tomorrow.](https://reader030.fdocuments.in/reader030/viewer/2022032701/56649c785503460f9492ce1b/html5/thumbnails/2.jpg)
Sir Christopher BlandChairman • BT Group plc
![Page 3: Sir Christopher Bland Chairman BT Group plc Delivering today Investing for tomorrow.](https://reader030.fdocuments.in/reader030/viewer/2022032701/56649c785503460f9492ce1b/html5/thumbnails/3.jpg)
Delivering todayInvesting for tomorrow
![Page 4: Sir Christopher Bland Chairman BT Group plc Delivering today Investing for tomorrow.](https://reader030.fdocuments.in/reader030/viewer/2022032701/56649c785503460f9492ce1b/html5/thumbnails/4.jpg)
2003/04 - another year of good progress
Group turnover £18.5bn, maintained*
Earnings per share 16.9p, up 19%**
Free cash flow £2.1bn, up 21%
Dividend 8.5p, up 31%
Net debt £8.4bn, down 12%
*Adjusted for the impact of mobile termination cut**Before exceptional items and goodwill
Delivering today
![Page 5: Sir Christopher Bland Chairman BT Group plc Delivering today Investing for tomorrow.](https://reader030.fdocuments.in/reader030/viewer/2022032701/56649c785503460f9492ce1b/html5/thumbnails/5.jpg)
FY 01/02
2,250
1,750
1,250
750
250
(250)
(750)FY
02/03FY
03/04
Free cash flow**(£m)
FY 01/02
18p
15p
12p
9p
6p
3p
0pFY
02/03FY
03/04
Earnings per share* (pence)
Mar 01
0
(7)
(14)
(21)
(28)Mar 02 Mar 03
Net debt (£bn)
FY 01/02
9p
6p
3p
0pFY
02/03FY
03/04
Dividend per share* (pence)
2003/04 - key financial indicators
8.8
14.216.9
2.0
6.58.5
-732
1,708 2,071
Mar 04
*Before exceptional items, goodwill amortisation**Free cash flow for 2001/02 excludes the property transaction and includespension payments, emerged and discontinued activities
-27.9
-9.6 -8.4-13.7
![Page 6: Sir Christopher Bland Chairman BT Group plc Delivering today Investing for tomorrow.](https://reader030.fdocuments.in/reader030/viewer/2022032701/56649c785503460f9492ce1b/html5/thumbnails/6.jpg)
2003/04 - dividends and buy backs
To date:
Purchased 1.1% of sharecapital (97m shares)
Total cost of purchase£174m
Authorisation for 10%of share capital
Rolling share buy backprogramme commenced
FY 01/020p
FY 02/03 FY 03/04
10p
8p
6p
4p
2p2.0p
6.5p
8.5p+31%
Dividend pay-out 50% of earningsTargeting a 60% pay-out ratio in2005/06
![Page 7: Sir Christopher Bland Chairman BT Group plc Delivering today Investing for tomorrow.](https://reader030.fdocuments.in/reader030/viewer/2022032701/56649c785503460f9492ce1b/html5/thumbnails/7.jpg)
Continuing the transformation
Over the last three years and going forward:delivering on a clear strategy
rigorous financial discipline− strong free cash flow− debt reduced by £20bn since March 2001
sustained reductions in customer dissatisfaction
accelerating new wave innovations
cultural change: BT’s people and brand values
deepening our community engagement Delivering today Investing for tomorrow
![Page 8: Sir Christopher Bland Chairman BT Group plc Delivering today Investing for tomorrow.](https://reader030.fdocuments.in/reader030/viewer/2022032701/56649c785503460f9492ce1b/html5/thumbnails/8.jpg)
Our contribution to the community
Helping everyone benefit from improved communication
communities first cymunedau yn gyntaf
Supporting good causes£18 million
Education support2 million children, 10,000 schools
4,000 BT VolunteersFree teaching resources
ChildLine£1.5 million cash, £2 million in kind,19% more children helped
EverybodyonlineHelped 8 communities - digital inclusion - 3 in Wales
![Page 9: Sir Christopher Bland Chairman BT Group plc Delivering today Investing for tomorrow.](https://reader030.fdocuments.in/reader030/viewer/2022032701/56649c785503460f9492ce1b/html5/thumbnails/9.jpg)
Ben VerwaayenChief Executive • BT Group plc
Delivering todayInvesting for tomorrow
![Page 10: Sir Christopher Bland Chairman BT Group plc Delivering today Investing for tomorrow.](https://reader030.fdocuments.in/reader030/viewer/2022032701/56649c785503460f9492ce1b/html5/thumbnails/10.jpg)
Our strategyDefend traditional
Improved serviceAggressive & creative marketingPrice innovationReduce costs / improve margin
Long termpartnershipwith our customers
Grow new waveBroadbandMobilityICTGlobal Solutions
Transformation21st
Century Network
![Page 11: Sir Christopher Bland Chairman BT Group plc Delivering today Investing for tomorrow.](https://reader030.fdocuments.in/reader030/viewer/2022032701/56649c785503460f9492ce1b/html5/thumbnails/11.jpg)
Transformation is underway
Investing for tomorrow
New wave now represents 18% of Group turnover
*Excluding the impact of the mobile termination rate reduction
FY 02/03
11FY
03/04
19
17
15
13
2.6New wave
15.9*Traditional
Tota
l re
ven
ue £
bn
-5%*
+30%
3.4New wave
15.1*Traditional
![Page 12: Sir Christopher Bland Chairman BT Group plc Delivering today Investing for tomorrow.](https://reader030.fdocuments.in/reader030/viewer/2022032701/56649c785503460f9492ce1b/html5/thumbnails/12.jpg)
Building for the future
Lead on network centric ICT capability
Deliver on broadband
Create convergent mobility solutions
Defend traditional business rigorously
Drive for cost leadership
Investing for tomorrow
![Page 13: Sir Christopher Bland Chairman BT Group plc Delivering today Investing for tomorrow.](https://reader030.fdocuments.in/reader030/viewer/2022032701/56649c785503460f9492ce1b/html5/thumbnails/13.jpg)
Embracing technology - enabling change
ICT - combines telecoms experienceand IT innovation
Major wins across UK, Europe and US− Unilever− NHS− Honeywell
Leading the world in network-centric ICT solutions
![Page 14: Sir Christopher Bland Chairman BT Group plc Delivering today Investing for tomorrow.](https://reader030.fdocuments.in/reader030/viewer/2022032701/56649c785503460f9492ce1b/html5/thumbnails/14.jpg)
Broadband - making Britain click
Broadband at the heart of BT
BT’s UK-wide broadband coverage more than 90%, andto rise to 99.6% by summer ’05
Cardiff: now 100% broadband enabled
Pan-Wales coverage: 96% by summer '05
Mar0.0m
2.5m
1.5m
1m
0.5m
2.0m
Jun SepDecMar Jun SepDecMar2002 2003
End user connections now over 2.5m
BT Wholesale Broadband
2004
![Page 15: Sir Christopher Bland Chairman BT Group plc Delivering today Investing for tomorrow.](https://reader030.fdocuments.in/reader030/viewer/2022032701/56649c785503460f9492ce1b/html5/thumbnails/15.jpg)
Building a seamless converged service
BT re-enters mobility by:Partnering with industry leaders
Re-building the brand in the high streetActing as a virtual network operatorInnovating through Wi-Fi – BT OpenzoneLaunching converged services –e.g. Project Bluephone− enabling the mobile phone to “roam”
onto the fixed network Create mobility services and solutions
![Page 16: Sir Christopher Bland Chairman BT Group plc Delivering today Investing for tomorrow.](https://reader030.fdocuments.in/reader030/viewer/2022032701/56649c785503460f9492ce1b/html5/thumbnails/16.jpg)
Good value for money
BT Together Option 1customers on Standardmigrated to Option 1 on 1st JulyOption 1 price reduced £1 to £10.50 per month
BT Together Option 2price reduced from 1st April by£1 to £6 per month (+ line rental)
BT Together Option 3price reduced from 1st April by £3 to £15 per month (+ line rental)
BT Business Planno UK or US call costs more than 10p for an hourcalls to key European countries cost no more than 20p
BT Local Businessactive in 73 locationsbilling over £1bn of revenue
Consumer Business
Reinvent our traditional business
![Page 17: Sir Christopher Bland Chairman BT Group plc Delivering today Investing for tomorrow.](https://reader030.fdocuments.in/reader030/viewer/2022032701/56649c785503460f9492ce1b/html5/thumbnails/17.jpg)
Financial discipline with cost leadership
Competitive advantage through cost leadership
01/02 02/03 03/04 04/05 05/06 06/07 07/08 08/09
Future savings programmesacross the business
£1.7bn £1bn
Savings to dateacross the business
21st Century Network savings
much more to come...Good progressto date
![Page 18: Sir Christopher Bland Chairman BT Group plc Delivering today Investing for tomorrow.](https://reader030.fdocuments.in/reader030/viewer/2022032701/56649c785503460f9492ce1b/html5/thumbnails/18.jpg)
What?A single intelligent network to replace many legacy platformsWhy?
Driving efficiencyBetter range and quality of services for customersSpeed to market
When?Trials in 2004Starting mass migration to new IP network - 2006Broadband available as “dialtone” to most customers - 2009
21st Century Network
![Page 19: Sir Christopher Bland Chairman BT Group plc Delivering today Investing for tomorrow.](https://reader030.fdocuments.in/reader030/viewer/2022032701/56649c785503460f9492ce1b/html5/thumbnails/19.jpg)
BT’s values
Trustworthy
Helpful
Inspiring
Straightforward
Heart
BT peopleproviding a customer-centric organisation
On 4 May 2004 over 1,300 senior managerswent back to the floor
‘my customer’ challenge cup
Hundreds of teams across BT competing
to help improve customer satisfaction
![Page 20: Sir Christopher Bland Chairman BT Group plc Delivering today Investing for tomorrow.](https://reader030.fdocuments.in/reader030/viewer/2022032701/56649c785503460f9492ce1b/html5/thumbnails/20.jpg)
Our customer promises
When you make an appointment with usour engineers will do whatever they can to keep it
When you call BTyou can choose to opt out of the machine andtalk to a real person
If the first person you call at BT can’t helpthey’ll make it their top priority to find theperson who can
Improving customer satisfaction
![Page 21: Sir Christopher Bland Chairman BT Group plc Delivering today Investing for tomorrow.](https://reader030.fdocuments.in/reader030/viewer/2022032701/56649c785503460f9492ce1b/html5/thumbnails/21.jpg)