BT : Annual Report 2023 - accessible version

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BT Annual Report

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We

Connect

For

Good

Much done, much more to do

BT Group plc Annual Report 2023

BT Group plc Annual Report 2023

We're BT Group

We continue to invest in the UK's digital infrastructure, to connect millions of people and generate growth, productivity and innovation.

Despite the challenging economic backdrop, the transformation of

BT Group continues for the benefit of our stakeholders. We're working hard to create a better future for everyone. We're delivering on our strategy but there is still more to do.

			BT Group is one of the world's leading
			connectivity services providers. The
			solutions we sell are integral to modern
			lives, businesses and communities
			in the UK and across the world. We
			support millions of customers across
			c. 180 countries and employ over
			99,000 brilliant colleagues.
			We manage some of the UK's best-
			known brands too. As the oldest
			telecommunications company in the world,
			we've been at the forefront of technology
Visit our online annual	innovation and progress for over 175 years.
review and see how we're	We've seen a lot of change over that time,
connecting for good	and today the solutions we offer have never
bt.com/annualreview	been more important to our customers.

Revenue

£20.7bn(1)%

(FY22: £20.9bn)

Profit before tax

£1.7bn(12)%

(FY22: £2.0bn)

Adjusteda EBITDA

£7.9bn5%

(FY22: £7.6bn)

Cash flow from operating activities

£6.7bn14%

(FY22: £5.9bn)

Normalised free cash flowb

£1.3bn(5)%

(FY22: £1.4bn)

Basic earnings per share

19.4p50%

(FY22: 12.9p)

Capital expenditure

£5.1bn(4)%

(FY22: £5.3bn)

1. Adjusted EBITDA is defined as the group profit or loss before specific items, net finance expense, taxation, depreciation and amortisation and share of post tax profits or losses of associates and joint ventures. See page 234.
2. Normalised free cash flow as defined on page 234.

Strategic report	001
Contents
Strategic report
A message from our Chairman	2
A message from our Chief Executive	4
Executive Committee	8
Our business model	10
Key trends influencing us	14
Our strategic framework	16
Progress against our strategic framework	18
Our people	32
Our Manifesto	36
Our stakeholders	40
Non-financial information	46
Our key performance indicators (KPIs)	48
Group performance	50
Regulatory update	58
A letter from the Chair of Openreach	60
Risk management	61
Our principal risks and uncertainties	63
Task Force on Climate-related Financial Disclosures	71
Viability statement	81
Corporate governance report	83
Financial statements	137
Additional information	233

This Strategic report was approved by the Board on 17 May 2023.

By order of the Board. Adam Crozier

Chairman

17 May 2023

Please see the cautionary statement regarding forward-looking statements on page 236.

Pages 1 to 82 form the Strategic report. It includes our business model, progress against our strategic framework, our key performance indicators, group performance and our principal risks and uncertainties.

The Corporate governance report on pages 83 to 136forms the Report of the Directors and includes the

Report on directors' remuneration.

In this document, references to 'BT Group' and 'the group' are to BT Group plc comprising its subsidiaries, customer- facing units and internal corporate units. A reference to a year expressed as FY23 is to the financial year ended 31 March 2023; FY22 is to the financial year ended

31 March 2022 and so on.

Look out for these throughout the report

Reference to another	Reference to further
page in the report	reading online

002	BT Group plc Annual Report 2023

A message from our Chairman

£24bn

A report into our national and regional economic impact in the UK1 (FY22) estimated that our activities provide a £24bn boost to the economy every year

Resilience enabling

1. national mission