1. © Copyright 2012 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. Joint HP and BT consultation meeting BT Midrange: Cessation of Contract Clyde TUPE transfer HP to BT Martin Cruise and Wendy McLeod 25th September 2013

2. © Copyright 2012 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. Agenda Introductions and welcome BT Rationale for change  Contract Clyde  UK Data Centres  BTs Self Service Strategy People impact Progress and Next Steps Consultation Meetings Questions

3. © Copyright 2013 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. 3 BT TSO UK Data Centres Overview  BT TSO organisation is approximately 16,000 strong of IT professionals  Manages the core BT internal data centres in the UK  Supports all internal server and storage infrastructure housed in BT’s internal data centres  Data centres are supported 24/7, supporting BT’s internal business In strictest confidence

4. © Copyright 2013 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. 4 HP Clyde Contract  HP Clyde contract is a managed service contract for HP to provide a managed service for BT’s internal IT infrastructure. The contract covers server support, storage support and backup/restore support. Within the contract, HP provides hardware support for server infrastructure  Work initially out-sourced nine years ago under the “Edin” project / contract name  Contract with HP ceases midnight on 14 November 2013, moving all the hardware support to BT direct contracts, in-sourcing all the people currently considered to be 121 people. In strictest confidence

5. © Copyright 2013 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. 5 BTs Self Service Strategy Project Python is an integral part of the IT Data Centres’ self-service strategy where we plan to reduce our service operations dependency on 3rd parties (vendor & subcon) from 60% to 25% of GMC within three years Project Python unlocks our contract addressable base (removes the 10% reduction floor on the HP Edin contract) enabling TSO to implement the IT Estate initiatives Unlocking the addressable base also enables BT to manage breakfix support in line with our the ‘future state technology’ and key location strategies as follows: o Within three Years, IT Data Centres plan to fully insource breakfix support for our VDC, containerisation and MI technologies within our Strategic long term data centres o These data centre's will be supported 24*7 by multi-skilled BT engineers, thus also improving the physical security of our estate

6. © Copyright 2013 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. 6 People Impact  121 people in-scope  Majority are ex BT employees  Majority based in BT buildings, no planned changes of work location  Transfer to BT gives employees the ability to move into new cloud based infrastructure, not just the old legacy technology which is in the Clyde contract  Similar on boarding arrangements as Project Wimbledon  Similar Pension arrangements per Wimbledon  Will look to assimilate those in scope onto BT T&Cs per Wimbledon  Transfer provides long term, sustainable employment In strictest confidence

7. © Copyright 2012 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. 7 Progress and Next steps.... 3 rd Sept & 4 th Sept HP Advised Unions Prospect & CWU and the UK Works Council 5 th, 9 th and 23 rd Sept In scope TUPE presentation townhalls– wash up absentees 23 rd Sept. From 5 th SeptHR data being shared with BT – anon (except for ex BT pension scheme members) 12 th to 27 th Sept Roadshows scheduled at various sites concluding this week, with representatives from HP & BT 13 th SeptInscope notifications sent – draft provided to both Union Reps 25 th to 30 th Sept Employee rep (for standard HP terms) nominations received, announced and trained Through OctRegular Consultation meetings with Unions and nominated Employee Reps End OctHP Pension and Benefit Roadshows Early NovFollow up Townhalls – Both BT and HP 14 th NovLast day of service provision with HP – transfers midnight.

8. © Copyright 2013 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. 8 Planned UK Communications Plan September 9 1623 October 30 14 7 2821 HP to Staff BT to Staff 13 In-Scope Letter 4 & 5 In-Scope Webcasts Consultation OOS process Pensions and Benefits Briefings BT Onboarding Transition Communications 30/ 8 Mgr Briefing BT Communications - Townhall Rep nomination 2 Unions 2 3 UKWC 3 Staff Invite November 4 11 On Site Roadshows

9. © Copyright 2013 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. 9 Union Consultation Meetings -Proposed timeline  Agree consultative timetable to update on progress and work toward agreement on T&C matrices and measures statements o Initial formal meeting 25 th September o 2 nd meeting w/c 30 th Sept o 3 rd meeting w/c 7 Oct o 4 th meeting w/c 14 th Oct o 5 th meeting w/c 21 Oct o 6 th meeting w/c 28 Oct In strictest confidence

10. © Copyright 2012 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. 10 Individual queries on your HP Terms & Conditions Email to mytransferout@hp.com Email subject: BT Transfer Out– Query Include your name, employee id Emails may be sent from personal email Individual HR questions or queries/objections on in scope Via your manager Raising consultation queries via your nominated Employee rep Process for raising questions & receiving responses will be detailed by your Employee Representative General questions on the exit Raise in the first instance with your line manager. If managers cannot provide an answer or consider the query requires wider publication, send to ClydeQandA@hp.com. ClydeQandA@hp.com Asking Questions

11. © Copyright 2012 Hewlett-Packard Development Company, L.P. The information contained herein is subject to change without notice. 11 Any Questions ? In strictest confidence