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Transcription:

Performance Indicators - Q4 2005/6 Description Page Profit & Loss 1 External Revenue by Segment 2 External Revenue Analysis / Sales Order Value 3 External Revenue Analysis - BT Retail External Revenue Analysis - BT Wholesale External Revenue Analysis - BT Global Services 3a 3b 3c Summary Cost Analysis 4 Capex 5 Total Call Volumes / Growth 6 Exchange Lines 7 BTTogether Packages / Retail Mobility Connections 8 Consumer Revenue per Consumer Household 9 Market Share 10 Carrier Pre Select & Wholesale Line Rental 11 Q4-2005/06 BT Group Plc

BT Group Results - Restated and under IFRS 2004/05 Better / 2005/06 2004/05 Better / 2005/06 2004/05 Better / 2005/06 2004/05 Better / 2005/06 2004/05 Better / 2005/06 Q1 (worse) vs Q1 Q2 (worse) vs Q2 Q3 (worse) vs Q3 Q4 (worse) vs Q4 Full Year (worse) vs Full Year m unless stated Actual Pr Year Actual Actual Pr Year Actual Actual Pr Year Actual Actual Pr Year Actual Actual Pr Year Actual BT Group % BT Group BT Group % BT Group BT Group % BT Group BT Group % BT Group BT Group % BT Group Turnover BT Retail 2,184 (3.7) 2,104 2,205 (3.8) 2,122 2,160 (2.6) 2,103 2,149 (1.2) 2,123 8,698 (2.8) 8,452 BT Wholesale 2,273 1.4 2,304 2,263 0.7 2,278 2,272 1.5 2,306 2,287 2.5 2,344 9,095 1.5 9,232 BT Global Services 1,727 17.8 2,035 1,791 15.4 2,067 1,810 19.4 2,161 2,160 9.7 2,369 7,488 15.3 8,632 Other 7 (14.3) 6 6 (33.3) 4 6 (50.0) 3 6 (16.7) 5 25 (28.0) 18 Eliminations (1,672) (2.8) (1,718) (1,711) 0.4 (1,704) (1,712) 1.2 (1,691) (1,782) 4.2 (1,707) (6,877) 0.8 (6,820) Group Turnover 4,519 4.7 4,731 4,554 4.7 4,767 4,536 7.6 4,882 4,820 6.5 5,134 18,429 5.9 19,514 Leaver costs 102-6 8-37 12-23 44-67 166-133 EBITDA Inc. leaver costs BT Retail 183 (5.5) 173 191 7.9 206 183 8.7 199 197 8.1 213 754 4.9 791 BT Wholesale 931 6.7 993 965 (0.3) 962 984 (0.8) 976 984 (2.1) 963 3,864 0.8 3,894 BT Global Services 193 20.7 233 228 (5.7) 215 239 1.3 242 301 3.3 311 961 4.2 1,001 Other (20) 110.0 (42) 26 (234.6) (35) (6) 500.0 (36) (42) 33.3 (56) (42) 302.4 (169) Group EBITDA 1,287 5.4 1,357 1,410 (4.4) 1,348 1,400 (1.4) 1,381 1,440 (0.6) 1,431 5,537 (0.4) 5,517 Depreciation & amortisation of intangibles BT Retail 38 10.5 34 38 (2.6) 39 33 (9.1) 36 38 0.0 38 147 0.0 147 BT Wholesale 479 4.6 457 477 3.1 462 473 1.3 467 485 (6.4) 516 1,914 0.6 1,902 BT Global Services 131 (16.0) 152 138 (14.5) 158 133 (20.3) 160 148 (13.5) 168 550 (16.0) 638 Other 52 (26.9) 66 51 35.3 33 56 16.1 47 74 31.1 51 233 15.5 197 Group Depreciation 700 (1.3) 709 704 1.7 692 695 (2.2) 710 745 (3.8) 773 2,844 (1.4) 2,884 Op Profit Inc. leaver costs BT Retail 145 (4.1) 139 153 9.2 167 150 8.7 163 159 10.1 175 607 6.1 644 BT Wholesale 452 18.6 536 488 2.5 500 511 (0.4) 509 499 (10.4) 447 1,950 2.2 1,992 BT Global Services 62 (30.6) 81 90 36.7 57 106 22.6 82 153 6.5 143 411 11.7 363 Other (72) (50.0) (108) (25) (172.0) (68) (62) (33.9) (83) (116) 7.8 (107) (275) (33.1) (366) Underlying Group Op Profit 587 10.4 648 706 (7.1) 656 705 (4.8) 671 695 (5.3) 658 2,693 (2.2) 2,633 Net Finance Costs (155) 8.4 (142) (154) 35.1 (100) (149) 13.4 (129) (141) 28.4 (101) (599) 21.2 (472) Share of post tax profits/losses of associates and joint ventures (7) 171.4 5 (3) 200.0 3 (10) 130.0 3 6 16.7 5 (14) 214.3 16 Underlying PBT 425 20.2 511 549 1.8 559 546 (0.2) 545 560 0.4 562 2,080 4.7 2,177 Specific Items : Net gains (losses) (14) - (12) 22 - (70) 249-0 17 - (55) 274 - (137) Reported PBT 411 21.4 499 571 (14.4) 489 795 (31.4) 545 577 (12.1) 507 2,354 (13.3) 2,040 Tax - Underlying (113) (14.2) (129) (143) 2.8 (139) (140) 4.3 (134) (145) 9.7 (131) (541) 1.5 (533) Tax on specific items 4-4 1-21 3-0 8-16 16-41 Tax rate 26.6% - 25.2% 26.0% - 24.9% 25.6% - 24.6% 25.9% - 23.3% 26.0% - 24.5% Net Income 302 23.8 374 429 (13.5) 371 658 (37.5) 411 440 (10.9) 392 1,829 (15.4) 1,548 Memo: Minority Interest (1) 1 (1) 1 EPS before specific items 3.6 25.0 4.5 4.8 4.2 5.0 4.8 2.1 4.9 4.9 4.1 5.1 18.1 7.7 19.5 EPS after specific items 3.5 25.7 4.4 5.0 (12.0) 4.4 7.7 (36.4) 4.9 5.2 (9.6) 4.7 21.5 (14.4) 18.4 Proposed Dividend - - - 3.90-4.30-6.50-7.60 10.40-11.90 Average Number of Shares in Issue 8,557-8,471 8,535-8,456 8,512-8,407 8,493-8,354 8,524-8,422 Capital Expenditure 694 (3.2) 716 803 13.6 694 770 1.4 759 744 (30.8) 973 3,011 (4.4) 3,142 Net Debt 8,422 3.6 8,121 8,373 2.9 8,133 8,046 (0.8) 8,113 7,893 4.5 7,534 7,893 4.5 7,534 Q4 05/06 Page 1 BT Group Plc

2003/4 2004/5 2005/6 EXTERNAL REVENUE BY Q1 Q2 Q3 Q4 Total Q1 Q2 Q3 Q4 Total Q1 Q2 Q3 Q4 Total SEGMENT m m m m m m m m m m m m m m m Consumer 1,495 1,487 1,493 1,462 5,937 1,416 1,410 1,400 1,373 5,599 1,324 1,336 1,324 1,312 5,296 Major Corporate 1,388 1,383 1,377 1,615 5,763 1,391 1,412 1,440 1,693 5,936 1,597 1,629 1,732 1,922 6,880 Business 646 649 631 655 2,581 617 624 600 601 2,442 586 583 568 587 2,324 Wholesale / Global Carrier 1,017 999 1,021 993 4,030 1,088 1,102 1,090 1,147 4,427 1,218 1,215 1,255 1,308 4,996 Other 6 4 9 15 34 7 6 6 6 25 6 4 3 5 18 Total 4,552 4,522 4,531 4,740 18,345 4,519 4,554 4,536 4,820 18,429 4,731 4,767 4,882 5,134 19,514 Headline Year-on-Year Growth EXTERNAL REVENUE BY SEGMENT 2004/5 2005/6 Q1 Q2 Q3 Q4 Total Q1 Q2 Q3 Q4 Total m m m Consumer (5.3%) (5.2%) (6.2%) (6.1%) (5.7%) (6.5%) (5.2%) (5.4%) (4.4%) (5.4%) Major Corporate 0.2% 2.1% 4.6% 4.8% 3.0% 14.8% 15.4% 20.3% 13.5% 15.9% Business (4.5%) (3.9%) (4.9%) (8.2%) (5.4%) (5.0%) (6.6%) (5.3%) (2.3%) (4.8%) Wholesale / Global Carrier 7.0% 10.3% 6.8% 15.5% 9.9% 11.9% 10.3% 15.1% 14.0% 12.9% Other n/m n/m n/m n/m n/m n/m n/m n/m n/m n/m Total (0.7%) 0.7% 0.1% 1.7% 0.5% 4.7% 4.7% 7.6% 6.5% 5.9% Underlying Year-on-Year Growth - excluding impact of mobile termination and revenues from Infonet and Albacom EXTERNAL REVENUE BY SEGMENT 2004/5 2005/6 Q1 Q2 Q3 Q4 Total Q1 Q2 Q3 Q4 Total m m m Consumer (4.5%) (4.3%) (4.6%) (4.7%) (4.5%) (4.9%) (4.5%) (5.4%) (4.4%) (4.8%) Major Corporate 0.4% 2.4% 5.2% 0.5% 2.1% 4.2% 5.6% 8.9% 8.9% 7.0% Business (3.7%) (2.9%) (2.7%) (6.3%) (3.9%) (2.8%) (4.8%) (5.3%) (2.3%) (3.8%) Wholesale / Global Carrier 10.6% 14.4% 16.0% 21.7% 15.6% 16.8% 11.6% 11.6% 13.6% 13.4% Other n/m n/m n/m n/m n/m n/m n/m n/m n/m n/m Total 0.5% 2.1% 3.2% 2.2% 2.0% 3.4% 2.5% 3.2% 4.7% 3.4% Q4-2005/06 Page 2 BT Group Plc

2003/4 2004/5 2005/6 EXTERNAL REVENUE ANALYSIS Q1 Q2 Q3 Q4 Total Q1 Q2 Q3 Q4 Total Q1 Q2 Q3 Q4 Total m m m m m m m m m m m m m m m Exchange lines/isdn - connection and rental 949 962 939 929 3,779 918 959 952 934 3,763 921 912 889 881 3,603 Calls 1,120 1,091 1,059 1,044 4,314 982 888 820 799 3,489 764 749 730 713 2,956 Private Circuits 352 324 348 324 1,348 326 325 325 316 1,292 314 302 322 302 1,240 Transit, conveyance, interconnect circuits and other wholesale (incl. FRIACO) 638 632 597 607 2,474 657 650 619 599 2,525 630 634 636 655 2,555 Other 783 752 750 758 3,043 700 699 685 726 2,810 717 731 698 732 2,878 Total Traditional 3,842 3,761 3693 3662 14,958 3,583 3,521 3,401 3374 13,879 3,346 3,328 3,275 3283 13,232 Networked IT Services* 552 584 611 799 2,546 634 699 738 995 3,066 899 914 1,038 1,214 4,065 Broadband 92 106 128 165 491 186 199 253 292 930 314 350 374 421 1,459 Mobility* 16 17 26 40 99 43 49 55 58 205 66 69 75 82 292 Other 50 54 73 74 251 73 86 89 101 349 106 106 120 134 466 Total New Wave 710 761 838 1,078 3,387 936 1,033 1,135 1,446 4,550 1,385 1,439 1,607 1,851 6,282 Total Revenue (Incl. Infonet and Albacom) 4,552 4,522 4,531 4,740 18,345 4,519 4,554 4,536 4,820 18,429 4,731 4,767 4,882 5,134 19,514 Memo: Infonet and Albacom included above - Traditional 31 31 41 42 39 40 162 New Wave 79 79 158 147 164 164 633 110 110 199 189 203 204 795 * Q1 - Q3 2005/6 numbers revised split between IT Services and Mobility 2003/4 2004/5 2005/6 SOLUTIONS AND C&SI SALES ORDER VALUE Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 m m m m m m m m m m m m Total order intake 2,048 561 2,078 2,325 1,276 852 1,235 3,798 2,359 752 1,194 1,086 Rolling 12 months order intake 5,875 6,020 6,343 7,012 6,240 6,531 5,688 7,161 8,244 8,144 8,103 5,391 Q4-2005/06 Page 3 BT Group Plc

2003/4 2004/5 2005/6 EXTERNAL REVENUE ANALYSIS - Retail Q1 Q2 Q3 Q4 Total Q1 Q2 Q3 Q4 Total Q1 Q2 Q3 Q4 Total m m m m m m m m m m m m m m m Exchange lines/isdn - connection and rental 775 791 770 761 3,097 752 801 795 780 3,128 766 754 741 736 2,997 Calls 992 967 944 927 3,830 875 787 729 710 3,101 678 664 650 631 2,623 Private Circuits 44 47 48 46 185 43 47 48 35 173 41 41 41 35 158 Transit, conveyance, interconnect circuits and other wholesale (incl. FRIACO) Other 296 282 306 260 1,144 266 277 272 254 1,069 262 276 262 259 1,059 Total Traditional 2,107 2,087 2,068 1,994 8,256 1,936 1,912 1,844 1,779 7,471 1,747 1,735 1,694 1,661 6,837 Networked IT Services 47 48 56 83 234 56 73 72 83 284 75 73 83 102 333 Broadband 63 73 80 99 315 108 111 131 146 496 159 176 185 198 718 Mobility 3 5 6 5 19 17 23 30 32 102 27 30 31 27 115 Other 3 9 13 17 42 14 18 19 26 77 17 26 29 44 116 Total New Wave 116 135 155 204 610 195 225 252 287 959 278 305 328 371 1,282 Total External Revenue 2,223 2,222 2,223 2,198 8,866 2,131 2,137 2,096 2,066 8,430 2,025 2,040 2,022 2,032 8,119 Memo: Internal Revenue 33 38 45 72 188 53 68 64 83 268 79 82 81 91 333 Total Retail Reported Revenue 2,256 2,260 2,268 2,270 9,054 2,184 2,205 2,160 2,149 8,698 2,104 2,122 2,103 2,123 8,452 Q4-2005/06 Page 3a - Retail BT Group Plc

2003/4 2004/5 2005/6 EXTERNAL REVENUE ANALYSIS - Wholesale Q1 Q2 Q3 Q4 Total Q1 Q2 Q3 Q4 Total Q1 Q2 Q3 Q4 Total m m m m m m m m m m m m m m m Exchange lines/isdn - connection and rental Calls Private Circuits 176 145 168 149 638 154 155 155 167 631 161 150 169 158 638 Transit, conveyance, interconnect circuits and other wholesale (incl. FRIACO) 638 632 597 607 2,474 657 650 619 599 2,525 630 634 636 655 2,555 Other Total Traditional 814 777 765 756 3,112 811 805 774 766 3,156 791 784 805 813 3,193 Networked IT Services Broadband 25 29 40 58 152 71 79 110 132 392 141 160 174 208 683 Mobility Other 47 45 60 57 209 59 68 70 75 272 89 80 91 90 350 Total New Wave 72 74 100 115 361 130 147 180 207 664 230 240 265 298 1,033 Total External Revenue 886 851 865 871 3,473 941 952 954 973 3,820 1,021 1,024 1,070 1,111 4,226 Memo: Internal Revenue 1,392 1,368 1,359 1,369 5,488 1,332 1,311 1,318 1,314 5,275 1,283 1,254 1,236 1,233 5,006 Total Wholesale Reported Revenue 2,278 2,219 2,224 2,240 8,961 2,273 2,263 2,272 2,287 9,095 2,304 2,278 2,306 2,344 9,232 Q4-2005/06 Page 3b - Wholesale BT Group Plc

2003/4 2004/5 2005/6 EXTERNAL REVENUE ANALYSIS - Global Services Q1 Q2 Q3 Q4 Total Q1 Q2 Q3 Q4 Total Q1 Q2 Q3 Q4 Total m m m m m m m m m m m m m m m Exchange lines/isdn - connection and rental 174 171 169 168 682 166 158 157 154 635 155 158 148 145 606 Calls 128 124 115 117 484 107 101 91 89 388 86 85 80 82 333 Private Circuits 132 132 132 129 525 129 123 122 114 488 112 111 112 109 444 Transit, conveyance, interconnect circuits and other wholesale (incl. FRIACO) - - Other 481 466 435 483 1,865 427 416 407 466 1,716 449 451 433 468 1,801 Total Traditional 915 893 851 897 3,556 829 798 777 823 3,227 802 805 773 804 3,184 Networked IT Services* 505 536 555 716 2,312 578 626 666 912 2,782 824 841 955 1,112 3,732 Broadband 4 4 8 8 24 7 9 12 14 42 14 14 15 15 58 Mobility* 13 12 20 35 80 26 26 25 26 103 39 39 44 55 177 Other - - - - - - - - Total New Wave 522 552 583 759 2,416 611 661 703 952 2,927 877 894 1,014 1,182 3,967 Total Revenue (Incl. Infonet and Albacom) 1,437 1,445 1,434 1,656 5,972 1,440 1,459 1,480 1,775 6,154 1,679 1,699 1,787 1,986 7,151 Memo: Internal Revenue 309 327 334 329 1,299 287 332 330 385 1,334 356 368 374 383 1,481 Total Global Services Reported Revenue 1,746 1,772 1,768 1,985 7,271 1,727 1,791 1,810 2,160 7,488 2,035 2,067 2,161 2,369 8,632 Memo: Infonet and Albacom included above - Traditional 31 31 41 42 39 40 162 New Wave 79 79 158 147 164 164 633 110 110 199 189 203 204 795 * Q1 - Q3 2005/6 numbers revised split between IT Services and Mobility Q4-2005/06 Page 3c - Global Services BT Group Plc

2004/5 2005/6 Summary Cost Analysis Q1 Q2 Q3 Q4 Total Q1 Q2 Q3 Q4 Total m m m m m m m m m m Net staff costs before leaver costs^ 898 859 929 980 3,666 965 1,002 980 986 3,933 Leaver costs 102 8 12 44 166 6 37 23 67 133 Net staff costs (including leaver costs) 1,000 867 941 1,024 3,832 971 1,039 1,003 1,053 4,066 Other operating costs 1,285 1,371 1,370 1,502 5,528 1,436 1,444 1,520 1,713 6,113 Sub total 2,285 2,238 2,311 2,526 9,360 2,407 2,483 2,523 2,766 10,179 POLO's 988 964 880 893 3,725 1,009 989 1,032 1,015 4,045 Depreciation and amortisation 700 704 695 745 2,844 706 690 707 770 2,873 Amortisation of acquired intangibles - - - - - 3 2 3 3 11 Total costs* 3,973 3,906 3,886 4,164 15,929 4,125 4,164 4,265 4,554 17,108 * Under IFRS basis and before specific items ^ Net Staff Costs is total staff costs less own work capitalised Q4-2005/06 Page 4 BT Group Plc

2003/4 2004/5 2005/6 Capex by Line of Business Q1 Q2 Q3 Q4 Total Q1 Q2 Q3 Q4 Total Q1 Q2 Q3 Q4 Total m m m m m m m m m m m m m m m BT Retail 24 19 35 34 112 31 41 44 54 170 35 33 32 53 153 Access 215 232 270 249 966 269 274 268 225 1,036 257 228 238 227 950 Switch 11 22 37 17 87 30 25 31 14 100 10 8 9 5 32 Transmission 54 46 49 64 213 45 50 73 62 230 46 52 45 43 186 Products/Systems Support 89 109 134 216 548 133 199 142 141 615 174 156 199 316 845 BT Wholesale 369 409 490 546 1,814 477 548 514 442 1,981 487 444 491 591 2,013 Solutions and C&SI 36 25 19 41 121 47 61 66 86 260 51 49 55 61 216 UK Networks 24 35 33 39 131 37 35 24 25 121 27 32 23 33 115 Other 37 42 59 90 228 60 65 51 48 224 64 90 91 126 371 BT Global Services 97 102 111 170 480 144 161 141 159 605 142 171 169 220 702 Others (includes Fleet and Property) 62 48 63 94 267 42 53 71 89 255 52 46 67 109 274 Total 552 578 699 844 2,673 694 803 770 744 3,011 716 694 759 973 3,142 Q4-2005/06 Page 5 BT Group Plc

Total Fixed Network Calls Quarterly Minutes (billions) Jun-02 Sep-02 Dec-02 Mar-03 Jun-03 Sep-03 Dec-03 Mar-04 Jun-04 Sep-04 Dec-04 Mar-05 Jun-05 Sep-05 Dec-05 Mar-06 Internet Related and Other Non Geo 15.61 14.80 14.83 14.81 13.94 13.06 12.51 12.45 10.93 10.13 9.33 8.68 7.51 6.86 6.20 5.87 Fixed to Mobile 2.26 2.34 2.34 2.31 2.37 2.37 2.29 2.26 2.21 2.20 2.13 2.08 2.13 2.08 2.02 1.99 Total Non Geographic Calls 17.88 17.13 17.18 17.12 16.31 15.43 14.79 14.70 13.13 12.33 11.46 10.76 9.64 8.94 8.22 7.86 Local 12.96 12.66 13.16 12.81 12.04 11.67 11.89 11.78 10.61 10.34 10.42 10.15 9.53 9.02 9.15 9.01 National 6.58 6.59 6.65 6.52 6.14 6.09 6.07 6.09 5.53 5.51 5.46 5.33 5.09 4.90 4.87 4.87 International 0.57 0.57 0.58 0.57 0.56 0.55 0.56 0.55 0.52 0.52 0.52 0.50 0.49 0.48 0.47 0.47 Total Geographic 20.11 19.83 20.39 19.91 18.74 18.31 18.51 18.43 16.66 16.37 16.40 15.98 15.11 14.40 14.49 14.35 Total Retail 37.98 36.96 37.56 37.03 35.04 33.74 33.30 33.13 29.79 28.70 27.86 26.74 24.75 23.34 22.71 22.21 Freephone and FRIACO 18.03 18.80 20.83 22.90 23.20 22.10 22.23 23.64 20.88 18.55 16.71 15.84 12.83 9.90 8.38 7.16 BT Group Originating Calls* 56.01 55.76 58.39 59.93 58.24 55.84 55.54 56.77 50.67 47.25 44.57 42.58 37.58 33.24 31.09 29.37 * Excluding Payphones and Directories (c0.3bn mins/qtr) Total Fixed Network Calls Quarterly Year on Year Minutes Change Jun-02 Sep-02 Dec-02 Mar-03 Jun-03 Sep-03 Dec-03 Mar-04 Jun-04 Sep-04 Dec-04 Mar-05 Jun-05 Sep-05 Dec-05 Mar-06 Internet Related and Other Non Geo (3)% (8)% (8)% (11)% (11)% (12)% (16)% (16)% (22)% (22)% (25)% (30)% (31)% (32)% (34)% (32)% Fixed to Mobile 5% 7% 6% 5% 5% 1% (2)% (2)% (7)% (7)% (7)% (8)% (4)% (6)% (5)% (4)% Total Non Geographic Calls (2)% (6)% (6)% (9)% (9)% (10)% (14)% (14)% (19)% (20)% (23)% (27)% (27)% (27)% (28)% (27)% Local (4)% (5)% (4)% (6)% (7)% (8)% (10)% (8)% (12)% (11)% (12)% (14)% (10)% (13)% (12)% (11)% National (3)% (3)% (2)% (4)% (7)% (8)% (9)% (7)% (10)% (10)% (10)% (12)% (8)% (11)% (11)% (9)% International (9)% (11)% (8)% (4)% (3)% (3)% (3)% (4)% (7)% (6)% (7)% (9)% (6)% (7)% (9)% (8)% Total Geographic (4)% (4)% (3)% (5)% (7)% (8)% (9)% (7)% (11)% (11)% (11)% (13)% (9)% (12)% (12)% (10)% Total Retail (3)% (5)% (5)% (7)% (8)% (9)% (11)% (11)% (15)% (15)% (16)% (19)% (17)% (19)% (18)% (17)% Freephone and FRIACO 149% 102% 70% 38% 29% 18% 7% 3% (10)% (16)% (25)% (33)% (39)% (47)% (50)% (55)% BT Group Originating Calls* 21% 16% 13% 6% 4% 0% (5)% (5)% (13)% (15)% (20)% (25)% (26)% (30)% (30)% (31)% Q4-2005/06 Page 6 BT Group Plc

Exchange Lines ('000) Product Group Summary Jun-02 Sep-02 Dec-02 Mar-03 Jun-03 Sep-03 Dec-03 Mar-04 Jun-04 Sep-04 Dec-04 Mar-05 Jun-05 Sep-05 Dec-05 Mar-06 Retail Business Voice 5,702 5,661 5,614 5,570 5,539 5,483 5,395 5,324 5,260 5,148 5,043 4,976 4,895 4,789 4,735 4,645 Business ISDN 3,358 3,425 3,468 3,492 3,519 3,528 3,524 3,500 3,476 3,452 3,413 3,382 3,311 3,254 3,207 3,152 Business Broadband 59 78 103 136 158 184 218 247 272 297 326 347 371 396 428 453 Major Corporate Broadband * 3 5 8 10 20 26 33 40 47 55 65 75 83 90 99 103 Total Business 9,122 9,169 9,193 9,208 9,236 9,221 9,170 9,111 9,055 8,952 8,847 8,780 8,660 8,529 8,469 8,353 Residential Voice 19,735 19,744 19,790 19,775 19,716 19,679 19,683 19,649 19,554 19,497 19,467 19,405 19,086 18,701 18,360 17,863 Residential ISDN 300 303 301 290 280 264 243 221 198 170 140 115 93 74 61 49 Residential Broadband 110 150 205 293 378 455 578 680 783 931 1,100 1,330 1,486 1,625 1,801 2,028 Total Residential 20,145 20,197 20,296 20,358 20,374 20,398 20,504 20,550 20,535 20,598 20,707 20,850 20,665 20,400 20,222 19,940 Total Voice 25,437 25,405 25,404 25,345 25,255 25,162 25,078 24,973 24,814 24,645 24,510 24,381 23,981 23,490 23,095 22,508 Total ISDN 3,658 3,728 3,769 3,782 3,799 3,792 3,767 3,721 3,674 3,622 3,553 3,497 3,404 3,328 3,268 3,201 Total Broadband (incl. Major Corporates) 172 233 316 439 556 665 829 967 1,102 1,283 1,491 1,752 1,940 2,111 2,328 2,584 Total Retail Lines 29,267 29,366 29,489 29,566 29,610 29,619 29,674 29,661 29,590 29,550 29,554 29,630 29,325 28,929 28,691 28,293 BT Wholesale BT Wholesale Broadband Connections 277 391 555 800 1,058 1,339 1,753 2,215 2,687 3,294 4,107 4,932 5,598 6,229 6,928 7,591 * Sold to Major Corporates as Connectivity and not as ISP. Q4-2005/06 Page 7 BT Group Plc

BT Together Packages ('000) Mar-02 Jun-02 Sep-02 Dec-02 Mar-03 Jun-03 Sep-03 Dec-03 Mar-04 Jun-04 Sep-04 Dec-04 Mar-05 Jun-05 Sep-05 Dec-05 Mar-06 Total 8,590 8,736 8,814 8,883 8,894 8,873 8,934 8,956 8,859 8,991 17,617 17,599 17,560 17,268 16,914 16,609 16,158 Option 1 N/A N/A N/A N/A N/A 5,100 5,255 5,379 5,419 5,609 14,270 14,314 14,326 14,119 13,836 13,600 13,192 Option 2 N/A N/A N/A N/A N/A 1,087 1,173 1,220 1,218 1,250 1,269 1,290 1,317 1,344 1,387 1,409 1,442 Option 3 N/A N/A N/A N/A N/A 82 210 274 324 433 515 556 582 582 575 573 586 BTT Local N/A N/A N/A N/A N/A 2,604 2,296 2,083 1,898 1,699 1,563 1,439 1,335 1,223 1,116 1,027 938 BT Mobility Connections ('000) Mar-02 Jun-02 Sep-02 Dec-02 Mar-03 Jun-03 Sep-03 Dec-03 Mar-04 Jun-04 Sep-04 Dec-04 Mar-05 Jun-05 Sep-05 Dec-05 Mar-06 Total 27 57 70 106 145 215 305 341 372 370 350 334 341 Business N/A N/A N/A N/A 27 51 59 82 104 127 144 162 185 196 204 209 214 Consumer N/A N/A N/A N/A N/A 6 11 24 41 88 161 179 187 174 146 125 127 Q4-2005/06 Page 8 BT Group Plc

Average Revenue per Consumer Household * Jun-02 Sep-02 Dec-02 Mar-03 Jun-03 Sep-03 Dec-03 Mar-04 Jun-04 Sep-04 Dec-04 Mar-05 Jun-05 Sep-05 Dec-05 Mar-06 Annual revenue 266 269 270 271 272 270 268 266 265 261 258 254 252 251 250 251 Contracted** 55% 55% 56% 56% 56% 57% 57% 58% 59% 60% 62% 64% 65% 66% 67% 67% Non-contracted 45% 45% 44% 44% 44% 43% 43% 42% 41% 40% 38% 36% 35% 34% 33% 33% * Rolling 12 month consumer revenue, less mobile polos, divided by average number of primary lines ** Includes line rental, broadband, select services and packages. Q4-2005/06 Page 9 BT Group Plc

Fixed to Fixed Voice Market Share * FY 03 FY 04 FY 05 FY 06 Residential 74% 70% 64% 58% Business 46% 44% 42% 41% * BT annual estimates: Local, national, international and non-geographic voice minutes Q4-2005/06 Page 10 BT Group Plc

Mar-02 Jun-02 Sep-02 Dec-02 Mar-03 Jun-03 Sep-03 Dec-03 Mar-04 Jun-04 Sep-04 Dec-04 Mar-05 Jun-05 Sep-05 Dec-05 Mar-06 Number of users* 72 214 381 648 1,044 1,622 2,120 2,725 3,299 3,723 4,169 4,571 4,909 5,291 5,554 5,779 6,067 Net adds in quarter 142 167 267 396 578 498 605 574 424 446 402 338 382 263 225 288 * CPS numbers include those customers who have migrated from Indirect Access CPS Volumes ('000) WLR ('000) Jun-02 Sep-02 Dec-02 Mar-03 Jun-03 Sep-03 Dec-03 Mar-04 Jun-04 Sep-04 Dec-04 Mar-05 Jun-05 Sep-05 Dec-05 Mar-06 Analogue lines / ISDN Channels 51 57 72 91 121 180 291 377 491 630 825 1,026 1,450 1,882 2,333 2,874 LLU Volumes ('000) Jun-02 Sep-02 Dec-02 Mar-03 Jun-03 Sep-03 Dec-03 Mar-04 Jun-04 Sep-04 Dec-04 Mar-05 Jun-05 Sep-05 Dec-05 Mar-06 Full and Shared loops 1 1 2 3 6 8 8 11 14 20 28 41 72 122 192 356 Q4-2005/06 Page 11 BT Group Plc