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. 8.5 10.4 11.9 15.1 15.8 2003/42004/52005/62006/72007/8 Dividends Dividends per share

6. Charitable support

9. Bringing it all together for London 2012

11. Ian Livingston CEO

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

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

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

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

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

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

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 Source : OECD Telecommunications Database DSL Coverage by country June 2007 100% 99% 97% 95% 90% 78% 10% 82% OECD Weighted Average

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

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 Entertainm ent Gaming Home IT advisor Monitoring and Control Wireless Network s BT Broadband Talk

27. No. 1 for customer service Investing in platforms, globally Agility Priorities 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…TOMORRO W… Fast internet... Instant messaging… VoIP… BT Vision… iPlayer … Multi viewing HD TV... Advanced HD gaming… HD video conferencing… A world of new possibilities 8

31. The Mail The Sun

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