This document provides an overview of BT Business, the business-to-business division of BT Group plc. It discusses BT Business' market context and strategic investments in areas like fiber broadband, mobile services, IT services, and conferencing. It also describes BT Business' organizational structure, sales channels in the UK and Ireland, and presents a case study of providing services to Anchor Trust, a UK housing and care provider. The key messages are that BT Business is a leading UK provider of fixed telecom services to SMEs and mid-market companies, and it aims to leverage this position to drive growth in mobile and IT services through strategic investments and improved customer service.

1. BT Business
Graham Sutherland, CEO
BT Group plc

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Agenda
Business description
Market context
Strategic investments
Core business
Channel reach
Case study – Anchor Trust
Key messages

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Our Journey
2001-2004
• 2005 TNS & Skynet
acquired (now iNet)
• 2006 acquired Dabs.com
• 2007 acquired Lynx and
Basilica
• 2001 BT Business formed
• 2004 BT Mobile launched
(MVNO with Vodafone)
2005-2008 2009-2013 2013
• 2005 BT Ireland created
(formerly ESAT BT)
• 2008 DETI investment in NI
started
• 2008 Fresca acquired
• 2008 Wire One acquired
BTBusiness
• 2009 Lynx & Basilica
integrated to form
Engage IT
• 2010 Fibre launched
• 2012 Plusnet for
Business launched
• MVNO deal with
EE
• 4G spectrum won
• 2002 BT Openzone
launched
• 2004 Expedite acquired
from NBS
• 2009 RoI Consumer
business sold to Vodafone
BTIreland
BT
Enterprises
• 2002 ESAT Group (bought
in 2000) renamed ESAT BT
• NI Consumer
business
separated
• Exclusive
partnership with
Dolby
• 2013 Tikit acquired
• 2013 BT WiFi rebrand

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The new BT Business organisation
 The new organisation allows greater focus on small, medium and corporate mid-
market business customers in the UK and Ireland
 Brings IT Services businesses together to realise synergies and drive growth
IT Services
• BT iNet
• BT Engage IT
• BT Business
Direct
• BT Tikit
• BT Expedite &
Fresca
UK Corporate UK SMEBT Ireland BT Conferencing
Small to mid-market
SMEs, plus specific
target markets for
Enterprises
SMEs & Public Sector in
NI, Public Sector,
Corporates, & Wholesale
in RoI
UK, foreign domestic
and global businesses
UK top-end SME
businesses and
corporate mid-market
• UK Corporate (mid-
market) Sales
• Custom Solutions
• UK Fleet
• SME Sales
• Enterprises Core
• Enterprises Ventures
• Business
• Wholesale
• BT Conferencing
Core products
• Voice
• IP / UC
• Broadband &
Fibre
• Networking
• Mobile &
WiFi
PortfolioSalesCustomers

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Calls & lines Broadband
Networking Switch
E.g. Virgin Media,
TalkTalk, Vodafone, O2, EE,
Verizon, Daisy, resellers
E.g. Virgin
Media, TalkTalk, Daisy,
XLN Telecom, Spitfire,
Zen Internet
E.g. Vodafone,
Virgin Media, TalkTalk,
Easynet, Colt,
E.g. Verizon,
Azzurri, Claranet,
Vodafone, Maintel
Competitive landscape
The UK business market
 Leading player in fixed services
– 52% share of business calls and lines1
– 30% share of business broadband internet
access2
– 21% share of fixed network services2
 Cross-selling opportunity in mobile and IT
services
 Large customer base and greatest UK reach
– c. 1m SME customers
– A strong and trusted brand
– Sales channels across all segments, with
national coverage
 Very fragmented but competitive market
Market size2 £3.9bn £4.8bn £12.9bn
UK Business market size
1. Revenue market share, from ‘Ofcom Telecommunications market data tables, Q1 2013’
2. Revenue market shares and market sizing from IDC custom marketing sizing model (for businesses with <1000 employees) and BT Business revenue data
38% 2% 2%
0%
20%
40%
60%
80%
100%
Fixed voice
and data
Mobile voice
and data
IT services
(addressable
market)
Marketshare%
BT market share

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 Provides audio, video and web conferencing in
170 countries in an £8.9bn market
 No. 4 player worldwide for audio1
 No. 2 for audio in Europe1
 A leading player in Europe for video
Ireland and Conferencing markets
 Largest fixed communications provider for
SMEs in NI
 Leading networked IT services partner for
government and major customers in NI and RoI
 Second largest wholesale provider in RoI
 Major competitors in RoI are Eircom, Vodafone,
Colt, AT&T and Verizon
BT Ireland BT Conferencing
The market opportunity for conferencing services2
£0.6bn £0.6bn
£2.4bn
0
1
2
3
RoI Business
(>100
employees)
RoI
Wholesale
RoI IT Services
Marketrevenue(£bn)
Sources: 1. Wainhouse Research
2. BT GS estimates for FY 2012/13 based on data from Wainhouse Research and Gartner
Size of market currently addressed
Source: Market sizing data from IDC (customised for BT) for the
product markets in which we are currently active
Asia-Pacific
£1,626m
W. Europe (ex.
UK / Ireland
£1,053m
North America
£4,341m
UK & Ireland
£605m,
C. & E. Europe
& Russia
£401m
Latin America
£241m
MEA
£599m
Worldwide Total
£8,864m

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Our beliefs on market trends
Customers
Competitive
environment
Demand for data will grow, driving demand for bandwidth and migration to fibre
Wireless increasingly important as the distinction between fixed and mobile erodes
Increasing move to cloud for applications, data processing and storage
Technology
Customer service demands rising as connectivity becomes increasingly key to business life
Customers better informed, demanding excellent delivery, service and competitive pricing
Increasingly interested in opportunity for their business from converged propositions
Decline of fixed voice, with migration to IP voice over next few years
Increasing competition from ‘over the top’ and IT service providers in core telecoms
Industry consolidation within and across sub-sectors and countries will continue

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Our strategic investments
 Our strategic investments align with four of the key strands of BT’s overall investment
priorities
Foundations in place for an exciting future
IT services
IT services
Delivering on our strategy
Fibre TV & Sport Mobility
4G
High-growth
regions

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 Marketing and outbound sales investment to
communicate benefits of BT Infinity for
Business and drive penetration
 Competitively priced voice and ‘BT Infinity for
Business’ bundles
 Major drive in Northern Ireland, where >90% of
homes and premises now passed
 On-going development of new business
services that will leverage fibre
Q1
2011/12
Q2 Q3 Q4 Q1
2012/13
Q2 Q3 Q4 Q1
2013/14
Q2
BT Business fibre customers
(including NI)
Fibre is still growing strongly
Strategic investments fibre

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Strategic investments mobile and WiFi
 New MVNO deal agreed with EE
– will make it easier to bundle
 Converged fixed and mobile solution being
developed
– provides a single platform for all voice devices
 4G spectrum plans well underway
– ‘inside-out’ strategy, focused on indoor and
outdoor small cells, supporting voice, video
and data
– leverages our WiFi footprint – the largest in the
UK
 Machine to Machine specialist opportunities
being addressed
180
200
220
240
260
280
Mar
2010
Mar
2011
Mar
2012
Mar
2013
Mobilesubscribers(k)
We have grown our mobile base
4G focus on urban / indoor capacity
Picocells/Femtocells Micro/small cells
500m100m50m

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Strategic investments IT services
 Comprehensive portfolio of IT services
 Also two specialist businesses addressing
retail and legal sectors
 Greatest focus on higher margin, annuity
revenue
− breadth of portfolio also important for pull-
through
 Investing in data centres, hosting and cloud
to leverage networking capabilities
 Potential to pursue additional vertical
specialisms if opportunities identified
Cisco specialist for networking
and hosting infrastructure
Specialist services for legal
and accountancy firms
Specialist services for the
retail sector
Sales and distribution of IT
equipment to volume segment
Leading HP and Microsoft
specialist
Our IT services businesses
-5%
0%
5%
10%
2011/12 2012/13YoYrevenue
change
IT services revenue is growing

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Strategic investments BT Conferencing
 Aim to be the world’s leading conferencing
provider
 BT MeetMe with Dolby Voice launched in
October to grow and protect our audio
business
– exclusive, high quality audio with ‘spatial
separation’ of participants
 Rebalancing video business from low margin
kit to managed revenues
 Targeting growth geographies, including
APAC, LATAM and Canada
We have a broad scope of services
 Video
 Streaming
 Web
 Audio
Solution
design
Integration and
access
Implementation
Services
Training and
adoption
In Life
Management

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Strong position in legacy voice services
 Competitively priced voice and broadband
bundles
 Targeted pricing initiatives that balance
acquisition and margins
 Strategic investments will drive further cross-
sell opportunities with voice
-500
-400
-300
-200
-100
0
2009/10 2010/11 2011/12 2012/13
YoYNetlinelosses(k)
BT line loss is improving Call minutes continue to decline
 Call minutes are increasingly migrating to
mobile, email and VoIP
 BT Business minutes are declining slower
than the market
 We are developing new IP voice and FMC
solutions, which can be bundled with other
services
-15%
-10%
-5%
0%
2011/12 2012/13
YoYdecline
Market
BT Business
Decline in traditional voice minutesAnnual line losses for BT Business
Source: Ofcom data and
BT Business’ own data

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Growth in broadband and networking services
 Bundled voice and broadband packages
 Dual brand with BT Plusnet for Business to
extend market reach
 Free business hub, free installation and free
access to BT WiFi
Our broadband base is still growing Leader in network services
 Leading player in network services,
including dedicated internet access and
IPVPNs
 Help customers to migrate to higher
bandwidths and more cost effective,
flexible solutions, particularly Ethernet
– Ethernet underpins growth in IP Voice and
cloud services

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Unparalleled channel reach in the UK
 bt.com for online sales
 BT Business sales
– telesales at 7 UK locations
 39 Local Business Partners
– exclusively selling BT products
 27 Authorised BT Partners and their
appointed resellers
– independent specialists
 Specialist sales teams for niche products
SME customers Corporate mid-market
 Desk-based account managers
 Field-based account managers
 Custom Solutions for end-to-end
solutions
− a centre of excellence in managed network
services
 Product experts and bid managers to
support sales
 Specialist sales teams for niche products

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And scale in Ireland and in global Conferencing
 Two sales organisations: Ireland
Business (NI and RoI) and Wholesale
(RoI)
 Networked IT services team with over
500 IT specialists
– works with major client base in NI and
RoI, including both governments
 Dedicated account teams manage
wholesale clients
 Telesales and online sales in NI for
smaller SMEs
Ireland Conferencing
 Channels to market split geographically
– Europe
– APAC / AMEA
– North America
– Latin America
 BT Conferencing sales teams also work
with BT Business and BT Global
Services
– Major MNCs account managed by BT GS

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Anchor Trust case study
 England’s largest not-for-profit provider
of housing and care for the over-55s,
with £264m turnover
 Offers purpose-built retirement
properties and specialist care for over
35,000 people at over 1,000 UK
locations
 Premises are a mix of offices, care
homes and support of home workers
Overview of Anchor Trust What BT is delivering
 Professional services to redesign IT
Infrastructure
 Single point of contact service desk
 PC management and support
 Site infrastructure support
 Dual data centre hosting services under
the new IaaS model
 Replication and Workplace Recovery
Services

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Anchor Trust case study video

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Key messages
Leading player in fixed telecoms in the UK SME and corporate mid-
markets
Key advantages include strong brand, breadth of portfolio and channel
reach
Opportunity to leverage these to drive growth in mobile and IT services
Cost transformation and improvements in customer service continue to
be important
Key investments include, IP voice, fibre, 4G mobile, cloud and data
centre services
New organisational structure improves focus on growth opportunities
and synergies

20. Q&A
BT Group plc
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