Slide 1: BT Group plc FY23 results
BT Group plc FY23 results 18 May 2023
Slide 2: Forward looking statements caution
Forward looking 2 statements caution Certain information included in this announcement is forward Accordingly, no assurance can be given that any particular looking and involves risks, assumptions and uncertainties that expectation will be met and readers are cautioned not to place could cause actua
Slide 3: Philip Jansen, Chief Executive
Philip Jansen Chief Executive
Slide 4: Highlights | Continued strong delivery against strategy
Highlights | Continued strong delivery against strategy 4 Delivered FY23 results in-line with our outlook ‒ Maintained full year dividend at 7.7pps1 Strong delivery against our strategy ‒ FTTP2 build up 43% to 10.3m premises; take up 3.1m ‒ Consumer FTTP connections up 50% to 1.7m ‒ 5G now covers 68
Slide 5: Simon Lowth, Chief Financial Officer
Simon Lowth Chief Financial Officer
Slide 6: FY23 results in line with outlook
FY23 results in line with outlook 6 FY23 Pro forma FY23 Reported FY23 Outlook Change YoY Change YoY £m £m % % Adjusted revenue1 20,431 1 20,669 (1) Growth on a pro forma basis Adjusted EBITDA1 7,999 3 7,928 5 At least £7.9bn Reported capex 5,056 5 5,056 5 c.£5.0bn Normalised free cash flow2 1,328 (5
Slide 7: FY23 summary of customer facing units
FY23 summary of customer facing units 7 FY23 Adjusted Revenue1,3 FY23 Adjusted EBITDA2,3 Change YoY Change YoY £m % £m % Consumer 9,499 2 2,694 9 Enterprise 4,962 (4) 1,394 (15) Global 3,328 (1) 458 0 Openreach 5,675 4 3,449 8 Other 27 0 4 (91) Intra-group (3,060) 2 - - Total 20,431 1 7,999 3 1 Befo
Slide 8: FY24 outlook and beyond
FY24 outlook and beyond 8 FY24 Beyond Adjusted Revenue1 Growth on a pro forma basis Consistent and predictable growth Consistent and predictable growth Adjusted EBITDA1 Growth on a pro forma basis enhanced by cost transformation £5.0bn - £5.1bn to FY26 Reported capex2 £5.0bn - £5.1bn Reduces by >£1b
Slide 9: Philip Jansen, Chief Executive
Philip Jansen Chief Executive
Slide 10: A compelling market opportunity for continued growth
A compelling market opportunity for continued growth 10 Fixed Data Usage Mobile Data Usage (PB) (TB) Continued strong demand for our core products and services 19% CAGR 27% CAGR Next generation network coverage and take up in UK increasing significantly Constructive, fair and transparent pricing mod
Slide 11: Unique assets to deliver future BT Group
Unique assets to deliver future BT Group 11 Relationship National superfast Leading fixed-access Market share leader in with 25m fixed network subscriptions; wholesaler reaches 29m UK retail markets 1.2m premises businesses Over 10m Market- Fastest FTTP leading Broadest FTTP portfolio of take up, no
Slide 12: Five clear priorities to drive sustainable growth
Five clear priorities to drive sustainable growth 12 Drive Consumer Capitalise on Deliver Openreach growth through Business’s unrivalled growth and strong converged assets to restore returns on FTTP propositions and growth services Digitise, automate and reskill to transform our cost base and improv
Slide 13: Drive Consumer growth through converged propositions and services
Drive Consumer growth through converged propositions 13 and services Key Growth Drive FTTP and Drive convergence Deliver best in class Price fairly Drivers 5G penetration take up customer experience and transparently Market-leading FTTP base Largest 5G base Growing converged households (m) (m) Futur
Slide 14: Capitalise on Business' unrivalled assets to restore growth
Capitalise on Business’s unrivalled assets to restore 14 growth Key Growth Expand customer Drive adoption of Grow value-added Simplify and digitise Drivers base Next gen connectivity solutions and bundles customer journeys Improving Managed Growing UK RGUs1 Services revenue (m) (£bn) 11 5.0 4.5 4.4
Slide 15: Deliver Openreach growth and strong returns on FTTP
Deliver Openreach growth and strong returns on FTTP 15 Key Growth Build Migrate customers Deliver great Price fairly and Drivers FTTP at pace to FTTP at pace service transparently Passing 25m-30m premises with FTTP Accelerating FTTP take up Reducing repair volumes (m) (%) (m) 25-30 40-55 3.9 3.5 c.4
Slide 16: Digitise, automate and reskill to transform our cost base and improve productivity
Digitise, automate and reskill to transform our cost base 16 and improve productivity Shut down legacy IT Migrate customers Key Growth Simplify Digitise and automate and move to strategic onto our strategic Drivers product portfolio customer journeys digital tech products and networks Closing busine
Slide 17: BT Group of the future – we connect for good
BT Group of the future – we connect for good 17 Consumer: The UK’s Business: The leading The leading UK-wide leading connectivity and connectivity and digital fixed access wholesaler digital services platform services platform Nationwide FTTP Best performing fixed connectivity Networks Best Ethernet
Slide 18: Strategic metrics – Much done, much more to do
Strategic metrics – Much done, much more to do 18 Actuals Future BT Group FY19 FY23 FY28-FY30 Openreach FTTP premises 1.2m 10.3m 25m-30m passed Networks Openreach FTTP take up 25% 30% 40-55% 5G UK population coverage 0% 68.1% >98% Retail FTTP take up1 284k 1.8m 6.5m-8.5m Customer 5G connections1 0m
Slide 19: Successful execution drives enhanced cash flow and returns
Successful execution drives enhanced cash flow and returns 19 Uplift from increased revenue and cost Growth savings, net of tax underpins progressive £0.5bn Cost savings from an dividend all-IP, all-FTTP network Material expansion in NFCF post peak network build Capex reduction post £1.0bn peak FTTP
Slide 20: Summary | much done, much more to do
Summary | much done, much more to do 20 Delivered FY23 results in-line with our outlook ‒ Maintained full year dividend at 7.7pps Strong delivery…and stepping up pace ‒ Market-leading FTTP and 5G networks ‒ Industry-leading customer experience ‒ Lean, agile and efficient organisation ‒ Digital and a
Slide 21: BT Group plc FY23 results
BT Group plc FY23 results 18 May 2023
Slide 22: BT Group
BT Group
Slide 23: Strategic metrics – definitions
Strategic metrics – definitions 23 metric Definition Openreach FTTP premises passed Total Openreach premises passed Network % Openreach FTTP take up - Openreach connections as proportion of Openreach Openreach FTTP take up premises passed 5G UK population coverage Population coverage of 5G network b