Shareholder Exclusive

Transcription

1 Shareholder Exclusive February A message from your Chairman 03 Receive your dividends direct 07 Shareholder offer and prize draws

2 A message from your Chairman From my first few months in the role, it s clear to me that BT has outstanding assets and is uniquely placed to provide ongoing leadership in an increasingly digital world. Results and dividend As announced in November, our first half results were in line with our expectations as encouraging results in our consumer-facing units, notably EE, helped offset ongoing challenges in our enterprise divisions, in particular Global Services. Given our underlying business performance, we maintained our outlook for the year. This is my first message to you since becoming Chairman in November I m honoured to be BT s chairman. BT is a great global company and few companies in the UK are as pivotal to our country s future as ours. This meant we can pay an interim dividend of 4.85p per share on 5 February. From next year the interim dividend per share will be fixed at 30% of the full-year dividend of the previous year. Our progressive dividend policy remains unchanged. Our strategic priorities We also continue to make positive progress on all our strategic priorities; to deliver great customer experience, invest for growth and to transform our costs. Delivering a great customer service is critical to our success. We re continuing to make progress through operational efficiencies, better product development and improved network performance. When our customers do experience problems with our network, we re maintaining a consistently high level of on-time repair performance. Use of our digital channels continues to grow with the My EE app now beyond 10 million downloads. We ve developed and launched a new app for our business customers to help them manage their account. We ve also launched the new BT TV app which is free to all BT TV customers, with many great features including access to BT TV premium channels and allowing customers to set recordings on the move. 01 BT Group plc

3 Investing in the UK s digital future We stand ready to invest further in ultrafast broadband. The results of a recent consultation found that the UK s Communications Providers broadly supported the ambition of Openreach to build a large-scale Fibre-to-the-Premises (FTTP) network across the country. Openreach is now working on proposals to accelerate its plans for ultrafast deployment, particularly FTTP. This new network will deliver faster speeds and more reliable network services for decades to come. Investing in society As a company, we think it s vital that we also invest in society. To help address the issue of poor tech literacy skills, we ve produced a report with Accenture Tech Know-How: The New Way to Get Ahead which has found that boosting the next generation s technology skills can super-charge social mobility and economic growth. The report makes four recommendations to address the issue. However, without concerted effort from business, government and society, the tech revolution could create a barrier for young, lessprivileged people as they enter the workforce. You can read more about this on pages 5 and 6. We ve opened a new multi-million pound Innovation Centre in Belfast the BT Ireland Innovation Centre. This will play a crucial role in our global research and development capability, focusing on advanced research into the Internet of Things, Artificial Intelligence and Data Analytics for customer experience, cyber security and 5G communications. The new centre will see BT and Ulster University undertake joint research that will drive the creation of 25 new university research posts, alongside up to 50 new graduate roles in the BT Belfast Global Development Centre. We ve also announced a new five-year initiative with Huawei to establish a joint research and collaboration group at the University of Cambridge. This will combine the brightest minds from two of the biggest global information, communication and telecommunications companies with one of the foremost academic institutions in the world, and will further strengthen the UK s status as one of the world s leading hubs for innovation. Backed by up to 25 million in funding and contributions over the next five years, the research group will focus on projects relating to photonics, digital and access network infrastructure and media technologies, alongside work aimed at enhancing the societal impact of communications technologies. Rewarding our shareholders Our goal remains to deliver sustainable, profitable revenue growth. This will support cash flow growth which we can reinvest in projects such as fibre networks, supporting our pension obligations and paying dividends to shareholders, all of which will create value for our many stakeholders. I look forward to supporting Gavin and his management team as we work together to serve both our customers and you, our shareholders. Jan du Plessis Chairman February 2018 BT Group plc 02

4 Receive your dividends direct Receive your dividends direct and have the chance to win one of our great prizes Why not receive your dividends direct to your bank or building society account and we ll automatically enter you into our prize draws where you could win one of our great prizes*. Why choose direct dividend payment? It s more secure No trips to the bank Annual dividend confirmation in May for all dividends in the previous tax year No fees for lost cheques Amazon Echo Amazon Echo is a hands-free speaker you control with your voice. Echo connects to the Alexa Voice Service to play music, ask questions, make calls, send and receive messages, provide information, news, sports scores, weather and more. All you have to do is ask! Choose to receive your dividends direct and you ll automatically be entered into the prize draw*. All you need to do is call and provide your bank details and it s free. Don t delay sign up today the prize draws close on 31 March BT Group plc

5 BT Tower trip At nearly 600ft tall, the BT Tower gives you spectacular panoramic views of the city of London. You can visit as our VIP guest and see the sights for yourself. Simply choose to receive your dividends direct by 31 March 2018 and we ll enter you into the draw to win two tickets for a memorable visit to the BT Tower*. * To enter, sign-up to receive direct dividends. All prize draws terms and conditions including how to opt out of the prize draws can be found at All prize draws close on 31 March 2018.

6 Boosting tech skills can super-charge social mobility and economic growth BT s new report with Accenture has found that boosting the next generation s technology skills can super-charge social mobility and economic growth but warns that without concerted effort from business, government and civil society, the tech revolution could create a barrier for young, disadvantaged people as they enter the workforce. The report reveals that individuals with higher levels of tech know-how earn more as their career progresses, with a tech literacy wage premium of 10,000 per year. The implied salary increase from these tech-savvy individuals could add approximately 11 billion to UK GDP by To help address the issue of poor tech literacy skills, the report makes four recommendations: Make computational thinking the building blocks of digital learning the thread that runs through the school curriculum and teacher training. Show young people and those who influence them the role tech plays in the things they love. Ensure young people from disadvantaged backgrounds are given access to skills development and real experience of the future workplace. Invest in existing employees skills to ensure those at most risk from automation aren t left behind. BT Group Chief Executive Gavin Patterson commented: Giving young people the skills and confidence to thrive in the workplaces of the future is the only way to address social mobility and secure long-term prosperity. Tackling this challenge will require the coordinated efforts of both the public and private sectors. Without that, we risk stifling future growth and leaving people behind. But we need to move beyond talking and now act, to ensure that young people fully understand the importance of technology and how it will shape their lives and careers. Read the report: 05 BT Group plc

7 Getting young people work ready BT is taking practical steps to ensure young people can step up to the jobs of the future, whatever their background. The company s Work Ready programme is primarily designed to help unemployed year olds, particularly from disadvantaged backgrounds, get into the workplace. Work Ready is a three-week work placement combining skills development, employability training and hands-on experience of jobs powered by technology. It is designed to give young people confidence and curiosity around tech to skill them up to be able to get the jobs of the future. As well as providing an understanding of tech in the workplace we also help young people create CVs, brush up their interview techniques, perfect their presentation skills and continue our coaching and support for several months post programme. Successful candidates get a certificate and a reference showing their attendance record and achievements to demonstrate their commitment to prospective employers. The placements are available UK wide. Find out more about the Work Ready programme: BT people raised more than 130,000 in the fight against cancer Employees across BT supported the Stand Up To Cancer campaign in many ways. From the bucketeers raising money on the streets with buckets in their hands, to hikers and bikers who took part in gruelling challenges to raise money for the cause many had personal reasons to get involved. Getting to know about lifestyle changes that could help reduce the risk of cancer was key in this year s campaign. Close to 8,000 employees pledged to make a change to their lifestyle. We ve made amazing progress in the fight against cancer over the past few decades, but one in two of us will still develop cancer in our lifetime, so we really can t afford to stand still, said Sophie Langman, Head of Corporate Partnerships at Cancer Research UK. This is why BT s support for our Stand Up To Cancer campaign is so important. All the money that BT have raised will go directly to funding vital research to enable us to get new treatments to patients faster and save more lives. BT is the world s greenest telco for the second year running and in the top ten for all global companies BT was ranked as the world s greenest telco in the 2017 Newsweek Green Ranking. It compares the sustainability performance of the 500 largest publicly traded global companies by revenue. We set out to reduce our carbon emissions intensity by 80% by We achieved our target in 2016, four years ahead of schedule. Our new goal was set in September to reduce emissions intensity across our business by 87% by Gabrielle Ginér, Head of BT s Environmental Sustainability Policy, says: We re continuing to build on our success. Since Newsweek compiled its 2017 report, we ve set new targets in our supply chain area and announced a new science-based carbon emission intensity target. In addition, EE has switched to renewable energy. BT Group plc 06

8 Shareholder offer and prize draws Demand is usually very high, so we re only able to make this offer available for a limited time. 3 for 2 at BT Shop For our latest exclusive shareholder offer, we re giving you 3 for the price of 2 on our brand new range of nuisance call blocking phones! To find out what else is available, call or visit 07 BT Group plc

9 Win a Honeywell Lyric C1 Home Security Camera We re offering one lucky shareholder the chance to win a Lyric C1 Wi-Fi Security Camera*. This boasts HD resolution, two-way audio and night-vision up to 5 metres which means you never need to worry about missing an event when you re not there. To enter call or go to * The prize draw closes on 31 March Win tickets to a top London venue We re offering 18 lucky shareholders the chance to win a pair of tickets to a top London venue*. The prize includes hospitality and seats in a shared VIP box. To enter call or go to * The prize draw closes on 31 March BT Group plc 08

10 Become an e-shareholder in two easy steps! As an e-shareholder we ll communicate with you electronically and your dividends will be paid directly into your bank or building society account. It s quicker and easier all round. Step 1 Register your e-shareholder account Go to All you need is your Shareholder Reference (from your dividend confirmation) and your address. Choose e-communications In Your preferences elect to receive shareholder communications by rather than post. Step 2 Choose direct dividend payment Once you ve received your activation code in the post, add your bank account details. Annual dividend confirmation In 2015/16, we introduced annual dividend confirmations giving you all your BT dividend information from the previous tax year in one statement. By choosing to receive your dividends direct to your bank or building society account, you ll automatically receive an annual dividend confirmation. Make sure your contact details are correct at You should keep your dividend confirmation as you may need it for tax purposes. You may be charged for a duplicate. 09 BT Group plc

11 Changes to dividend payments In April 2016 the dividend tax credit was replaced by a tax-free dividend allowance. The dividend allowance doesn t reduce your total income for tax purposes, but it means that you don t have to pay tax on the first 5,000 of your dividend income, no matter what non-dividend income you have. The allowance is available for anyone who has dividend income. What does this mean for you as a shareholder? Tax on any dividends you receive over 5,000 will be charged at: 7.5% for basic rate taxpayers; 32.5% for higher rate taxpayers; and 38.1% for additional rate taxpayers. Dividends within your allowance will still count towards your basic or higher rate bands and may therefore affect the rate of tax that you pay on dividends you receive in excess of the 5,000 allowance. Dividends received on shares held in an Individual Savings Account (ISA) continue to be tax free. The tax-free dividend allowance will be reduced to 2,000 from April Be ScamSmart Investment Be ScamSmart scams are designed to look like genuine investments Spot Investment the warning scams signsare designed to look like genuine investments Have you been: Spot contacted the warning out of the signs blue Have you been: and told the investment contacted out is safe of the blue called repeatedly, or and told the told investment the offer is is safe only available for a limited time? called repeatedly, or If so, told you the might offer have is only been available contacted for a by limited fraudsters. time? If so, you might have been contacted by fraudsters. Avoid Investment fraud 1. Reject cold calls If you ve received unsolicited contact about an investment opportunity, chances are it's a high risk investment or a scam. You should treat the call with extreme caution. The safest thing to do is to hang up. 2. Check the FCA Warning List our before you hand over any money. Seek advice approached you. Markets in Financial Instruments Directive II (MiFID II) MiFID II is a new financial regulation which came into force on 3 January It s been designed to protect investors, such as yourself, by introducing enhanced obligations for firms who provide investment services such as share dealing. Its aim is to increase transparency and prevent market abuse. As a result, these firms have to provide additional information to regulatory bodies about your transactions, and in order to do this, may need to collect additional information about you such as your date of birth and National Client Identifier (NCI). If you do not provide this mandatory information, you will not be able to trade your shares. If you are a sole UK private investor for example your NCI will be your National Insurance Number. For non-uk nationals, and anyone who has multiple nationalities, you may need to provide a different NCI such as tax number, personal identity code or passport number. For more information go to Companies, trusts and charities will need to provide their Legal Entity Identifier (LEI). Report a Scam If you suspect that you have been approached by fraudsters please tell the FCA using the reporting form at consumers/report-scam-unauthorised-firm You can also call the FCA Consumer Helpline on If you have lost money to investment fraud, you should Find out more at Remember: if it sounds too good to be true, it probably is! Take simple precautions to protect personal and financial information. For tips on how to protect yourself and find out the latest information go to BT Group plc 10

12 Marketing Unless you tell us not to, we will tell you about BT products and services we think you might be interested in through Shareholder Exclusive. We might do this through the post, s or online. We won t include this detail if you tell us not to but we will still need to send you shareholder-related messages. You can opt out of getting marketing messages anytime by simply writing to our registrars Equiniti at the address below. BT Group plc Registered office: 81 Newgate Street, London EC1A 7AJ Registered in England and Wales No Produced by BT Group PHME: Printed in England by Communisis. Design by Emperor. Printed on Pavarotti Silk. Contact information Shareholder helpline For general enquiries call: Freefone ( *) Textphone ( *) *Calls from outside the UK Lines open 8.30am to 5.30pm (UK time), Monday to Friday (excluding public holidays in England and Wales) You can find information on how to manage your shareholdings at If your question is not answered by the information provided, you can send your enquiry via secure mail from these pages. Equiniti, Aspect House, Spencer Road, Lancing, West Sussex BN99 6DA, United Kingdom (please include a daytime telephone number)