<Unit name here> April 2012

1. <Unit name here> April 2012 • An update on Operate’s progress against our strategy for your team discussion • This month: • Operate2014 Cycle 2 successes • Operate people getting involved Register feedback on the Core Brief here

2. How BT Operate is doing Highlights of our latest results Operate’s Feb ‘12 performance (P11) RFT Reliability • RFT • On time delivery (L2C) performing better than on time fixes (T2R) • Operate’s contribution in Q4 has been strong • Trading Reliability • Some GS systems have performed poorly recently • Major incident at Rochdale data centre • Focus now on avoiding future incidents/ understanding risk Costs People • Cost • Not as efficient year as we needed to be • Work to do via ‘be simpler’ to reduce the cost of running our estate • People • CARE shows many of our people are feeling much more engaged • Service Reliability • Reliability of key network platforms improved in Q4 • Power infrastructure improved but we’ve suffered from some power failures which we’re quickly recovering from

3. successes 2 March 2012 Tactical supply planning roll-out started in Service Delivery UK Voice and UK Data teams Over 25% reduction in the cost of testing each product in the Concept to Market process is making us more cost efficient be smart be lean be simpler be clear 2013 2014 2015 2016 2017 2018 2019 MD dashboards in place for all operational units and being used to discuss improvement and investment opportunities Work now starts on building director and GM dashboards UK Data team achieved 20% reduction incycle time for Managed WAN We’ve agreed standard roles and new ways of working for operational planning to help us do these roles better than before