BT’s CR story

1. BT’s CR story BT has a long-standing commitment to responsible andsustainable business practices.Our commitment to help createa better, more sustainableworld is as strong as ever. Sir Michael Rake, Chairman, BT “ ” Allan Scott, Head of Marketing, March 2011

2. “ Delivering the public spending cuts facing the new Government will not be easy. But those who argue it will be impossible without slashing services should take a look at BT. David Wighton Business and City Editor The Times “

3. We met our cost challenge head-on It is not enough any more just to ‘squeeze the sponge’ – you have to do things differently We have been through it “ Delivering the public spending cuts facing the new Government will not be easy. But those who argue it will be impossible without slashing services should take a look at BT. David WightonBusiness and City EditorThe Times “ In the last 18 months ,we have: • Cut operating expenditure by £1.8 billion • Reduced capital expenditure by £800 million • Improved our bottom line by £250 million • Increased our cash flow by £1.2 billion • All while facing an economic recession, and without compromising customer service

4. BT cut costs while improving services 5. Industrialise processesAutomate processes as far as possible, including across organisational boundaries. Enable customer self-service, and minimise themanual handlingof information 4. Redesign the operating model Wipe the slate clean. Rethink how the organisation needs to work. Simplify processes, create shared service factories and focus on getting services right first time. Designthe organisation structure last 3. Drive tacticalefficiency andengage everyone Use local headcount reduction targets to drive local prioritisation and efficiency. Demonstrate leadership through ‘town hall’ meetings. Speak regularly to all staff and involve them. Use technology for mobile & flexible working & rationalise property portfolio 2. Rationalisesupply chain Consolidate with fewer suppliers andrenegotiate contracts. Centralise vendor management andrequire the use of preferred suppliers.Stop and review all CAPEX plans 1. Impose discipline Constrain travel and discretionary spend.Halt purchasing, centralise decision making, introduce new business rules and freeze recruitment

5. Work Anywhere – The BT Approach to Enterprise Mobility Mobile Services Mobile voice, data & email services: GSM, GPRS & 3G services, Public Wi-Fi & Wireless LAN Flexible Working Empowering people to work flexibly, securely and efficiently wherever they are Mobilising Business Processes Operational improvement through mobilising processes, applications, service & supply chains and assets

6. Business Drivers for Flexible Working • Reducing operational costs • space reduction and property rationalisation • reducing property management costs • Increasing productivity of employees, systems and resources • enabling project-based working practices • reducing non-productive time and absenteeism • Retaining and attracting talent • supporting work-life balance • keeping the right people & meeting legal requirements • Delivering more effectively • creating a more engaged, motivated & customer-focussed workforce • moving to objective based management and focus • Ensuring business continuity & CSR • reducing the dependence on employees working from office locations • meeting sustainability objectives, reducing carbon impact

7. What is Total Collaboration from BT? BT Total Collaboration brings together a variety of communications channels such as web, instant messaging, audio, video and conferencing into one integrated unified communications toolbox. One size does not fit all! These can be tailored to meet your organisation needs. This could be voice, video, IM, workspaces, web conferencing, audio conferencing, etc. The following slides guide you to chose which technologies will help you to collaborate.

8. The dynamics of collaboration Meeting needs Face-to-face Social interaction tobuild relationships Telepresence See reaction andbody language Video Web Present andedit documents Discuss issuesand actions Audio IM Simple clarification P Meeting duration (hrs) 0 1 2 3 4

9. The dynamics of collaboration Meeting needs Face-to-face Social interaction tobuild relationships • IM • IM/ Presence / ChatMS OCS, BPOS, and Cisco UPS • Web 2.0/ Social NetworkingiClick, Synapse Telepresence See reaction andbody language Video Web Present andedit documents Discuss issuesand actions Audio IM Simple clarification Meeting duration (hrs) 0 1 2 3 4

10. The dynamics of collaboration Meeting needs • Audio • Telephone calls (TDM, IP, Mobile) • Audio conferencing • Voicemail • Contact management Face-to-face Social interaction tobuild relationships Telepresence See reaction andbody language Video Web Present andedit documents Discuss issuesand actions Audio Simple clarification Meeting duration (hrs) 0 1 2 3 4

11. The dynamics of collaboration Meeting needs • Web • Web conferencingCisco WebEx and MS LiveMeeting • EmailMS Exchange, BPOS • Document sharing / White boardingMS SharePoint, LiveMeeting, BPOS Face-to-face Social interaction tobuild relationships Telepresence See reaction andbody language Video Web Present andedit documents Discuss issuesand actions Simple clarification Meeting duration (hrs) 0 1 2 3 4

12. The dynamics of collaboration Meeting needs • Video • Video to the desktop/ streaming Face-to-face Social interaction tobuild relationships Telepresence See reaction andbody language Video Present andedit documents Discuss issuesand actions Simple clarification Meeting duration (hrs) 0 1 2 3 4

13. The dynamics of collaboration Meeting needs • TelePresence/ Immersive Video • UC Video • Cisco,Polycom, Tandberg Face-to-face Social interaction tobuild relationships Telepresence See reaction andbody language Present andedit documents Discuss issuesand actions Simple clarification Meeting duration (hrs) 0 1 2 3 4

14. The dynamics of collaboration Meeting needs Face-to-face Social interaction tobuild relationships See reaction andbody language Present andedit documents Discuss issuesand actions Simple clarification Meeting duration (hrs) 0 1 2 3 4

15. The benefits of Total Collaboration Total Collaboration will help you: Improve productivity Reduce costs Work globally Be greener

16. Improve productivity Reach the right person, first time, every time, and access colleagues, information and messages from wherever you are. Increase time to market Presence technologies save each user, on average,32 minutes a day (Research by Sage) The BT experience: • BT Homeworkers are31% more efficient • Absenteeism down 63% • 97% of women return toBT after maternity leave(UK average is 40%).

17. Reduce costs Total Collaboration can deliver savings in labour, inventory, distribution and customer service Cut mobile phone bills by 30%, email traffic by 40%and voicemail by 15% with Instant Messaging (IM) The BT experience: • 60,000 of our 100,000 global employees are UCC enabled remote workers • A further 11,500 are home based, providing BT with property savings of £500 million per year. • Our Carbon Impact Assessment has saved BT £363 million over 5 years

18. Be greener Total Collaboration technologies reduce travel, remove cost, lower carbon emissions and increase productivity. Presence enables application sharing and instant messaging while Telepresence enables global collaboration with real-life teleconferencing. The BT experience: • BT saved annual travel & subsistence costs of €111m • Conferencing has eliminated more than 700k face-to-face meetings a year at BT • BT has achieved a 45% reduction in emissions frpm air travel over the past 2 years BT was the first organisation to meet WWF’s One in Five challenge July 2010