2. Sir Michael Rake Chairman

4. Business Performance Revenues up by 2% to £20.7 billion Pre-tax profit* £2.5 billion Earnings per share* up 5% at 23.9p Free cash flow up 11% at £1.5 billion * Before specific items

5. Dividends 15.8 15.1 11.9 10.4 8.5 2003/4 2004/5 2005/6 2006/7 2007/8 Dividends per share

6. Charitable support

9. Bringing it all togetherfor London 2012

11. Ian Livingston CEO

12. FY 2007/8 – Group financial headlines Group revenue £20.7bn 2% EBITDA (1) £5.8bn 3% Earnings per share (1) 23.9p 5% Free cash flow £1.5bn 11% Dividend 15.8p 5% (1) Before specific items

13. Group Revenue – 13% growth over 4 years £bn

14. Earnings per Share* - 41% growth in 4 years Pence per share * Before specific items

15. Strength in mix of customers and businesses FY 2007/8 – revenue by customer Corporate Consumer 24% 37% 26% 13% Carrier Business

16. BT is truly a global company Russia / CEE 400 employees Revenue £28m UK 91,300 employees Revenue £17.2bn North America 3,800 employees Revenue £730m Western Europe 10,500 employees Revenue £2.6bn Latin America 900 employees Revenue £76m Asia Pac 5,000 employees Revenue £132m MEA 200 employees Revenue £34m 112,000 BT people Revenue £20.7bn in 07/08

17. Corporate Strong growth in revenue driven by very strong global order book 31% growth

18. Carrier - Openreach 28,000,000 lines 13,000,000 broadband connections Service to over 450 communicator providers • Reduced access network faults by 10% • Provision and repair lead times halved

19. Broadband availability by country DSL Coverage by country June 2007 100% 99% 97% 95% 90% 82% 78% 10% OECDWeightedAverage Source : OECD Telecommunications Database

20. Carrier - BT Wholesale Affected by regulatory change Decline in low margin transit Introduced family of 21CN ‘smart’ broadband services Higher speeds Flexible bandwidth Quality control for video £1.8bn of contracts signed in 2007/8

21. BT Business Helping businesses do what they do best

22. BT Business - Tradespace

23. BT Business Revenue growth % From 5% decline to 5% growth (annual 05/06 to 07/08)

24. Consumer Serving 15 million households UK’s No.1 retail broadband provider - 4.4m connections Value for money Innovative products Service

25. Consumer - delivering value for money Calls – Package prices more than halved in 2 years - Anytime from £14.50 to £5.95 - Evenings/Weekends from £5.50 to £2.70 Broadband – Prices halved since 2001 - Speeds up 16 fold And – Calling BT is now free

26. Consumer - BT Total Broadband – innovative products BT ToGo Security & Storage BT Broadband Talk Entertainment Wireless Networks Monitoring and Control Gaming Home IT advisor

27. Priorities No. 1 for customer service Investing in platforms, globally Agility Continue to deliver for customers and shareholders

28. Customer service • Dissatisfaction with telephony repair reduced by 25% • Broadband repair & help – dissatisfaction reduced by a third • 17% reduction in complaint volumes • Abandoned calls halved But – a lot more to do

29. Next Generation Broadband: A bold vision for the UK UK’s biggest super fast broadband investment: £1.5 bn Accessible by up to 10 million homes by 2012 Range of speeds up to 100mbps: with >1,000mbps potential BUT we need the barriers to investment removed 2

30. What it means for consumers TODAY… TOMORROW… Fast internet... Multi viewing HD TV... Instant messaging… Advanced HD gaming… VoIP… HD video conferencing… BT Vision… A world of new possibilities iPlayer… 8

31. The Mail The Sun

32. Priorities No. 1 for customer service Investing in platforms, globally Agility Continue to deliver for customers and shareholders