Slide 1: We connect for good - BT Group plc FY24 results
BT Group plc FY24 results 16 May 2024 We connect for good BT Group plc FY24 results
Slide 2: Forward looking statements caution
BT Group plc FY24 results 16 May 2024 2 Forward looking 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 expectation will be met and readers are caution
Slide 3: Allison Kirkby, Chief Executive
BT Group plc FY24 results 16 May 2024 3 Allison Kirkby Chief Executive
Slide 4: Continued strong delivery against our strategy
BT Group plc FY24 results 16 May 2024 4 Continued strong delivery Achieved gross annualised cost savings 12 months against our strategy early of Solid operational and Delivered ahead of guidance Peak capex passed, £3bn financial performance normalised free cash flow to increase from here Growth in r
Slide 5: Openreach
BT Group plc FY24 results 16 May 2024 5 Openreach | Strong FTTP Copper Broadband Revenue (£m) Ethernet Revenue (£m) performance driven +8% +8% 3,843 by CPI linked 3,304 3,564 pricing and growth +7% +11% 1,056 1,175 in sales of FTTP1 and 985 Ethernet FY22 FY23 FY24 FY22 FY23 FY24 FTTP footprint now 1
Slide 6: Consumer
BT Group plc FY24 results 16 May 2024 6 Consumer | Growth Broadband FTTP Broadband Revenue (£m) Postpaid Mobile1 Revenue (£m) delivered through +3% +4% +3% +6% 4,122 CPI linked pricing, 3,824 3,951 2,999 3,081 3,279 increased roaming and FTTP connections FY22 FY23 FY24 FY22 FY23 FY24 Launched new EE
Slide 7: Business
BT Group plc FY24 results 16 May 2024 7 WAN & Fixed Business | Legacy Connectivity2 Mobile Ethernet Broadband Revenue (£m) Revenue (£m) declines and -5% +6% higher input costs +3% +2% 1,152 1,167 965 1,099 partially offset by 935 980 growth in SMB1 and security FY22 FY23 FY24 FY22 FY23 FY24 Improvin
Slide 8: Simon Lowth, Chief Financial Officer
BT Group plc FY24 results 16 May 2024 8 Simon Lowth Chief Financial Officer
Slide 9: Delivered in line with our outlook across the CFUs
BT Group plc FY24 results 16 May 2024 9 Delivered in line with our outlook across the CFUs FY24 Adjusted Revenue1 FY24 Adjusted EBITDA2 £m Change YoY %3 £m Change YoY %3 Consumer 9,833 4 2,672 5 Business 8,128 (2) 1,630 (16) Openreach 6,077 7 3,827 9 Other 16 (41) (29) Nm Intra-group items (3,219) (
Slide 10: Delivered ahead of our outlook with lower capex supporting increased NFCF
BT Group plc FY24 results 16 May 2024 10 Delivered ahead of our outlook with lower capex supporting increased NFCF3 FY24 Vs FY24 Outlook £m Change YoY%1 Adjusted revenue2 20,835 2 Adjusted EBITDA2 8,100 1 Reported capex 4,880 (3) Normalised free cash flow3 1,280 (4) Dividend (pps) 8.0 4 1. On a pro
Slide 11: Allison Kirkby, Chief Executive
BT Group plc FY24 results 16 May 2024 11 Allison Kirkby Chief Executive
Slide 12: BT Group has a unique set of assets
BT Group plc FY24 results 16 May 2024 12 BT Group has a unique set of assets UK’s leading fixed- Market share leader Global Global access wholesaler in UK retail markets fabric 14m FTTP premises passed 1.2m Relationships with 1k XX Multinational Market-leading 34% UK organisations corporates and net
Slide 13: Successful telcos are national champions who leverage their assets to create value for all
BT Group plc FY24 results 16 May 2024 13 Successful telcos are national champions who leverage their assets to create value for all Engaged and Enabling customers Positively Generating sustainable empowered colleagues to live and work better impacting society shareholder returns Engagement1 (%) NPS
Slide 14: Our existing strategy is driving long term value
BT Group plc FY24 results 16 May 2024 14 Our existing strategy is driving long term value Our ambition To be the world’s most trusted connector of people, devices and machines Our strategy Build the strongest Create standout Lead the way to a bright, foundations customer experiences sustainable futu
Slide 15: Our strategy remains, with sharpened focus to accelerate
BT Group plc FY24 results 16 May 2024 15 Our strategy remains, with sharpened focus to accelerate Our ambition To be the UK’s most trusted connector of people, devices and machines Strategic priorities Focus going forward Deliver Openreach growth and strong Peak capex passed returns on FTTP Drive Co
Slide 16: Deliver Openreach growth and strong returns on FTTP
BT Group plc FY24 results 16 May 2024 16 Deliver Openreach growth and strong returns on FTTP Building FTTP at pace Accelerating FTTP take up Reducing repair volumes (m) (%) (m) 25-30 40-55 3.1 14 1.7-2.1 34 FY24 FY28-30 FY24 FY28-30 FY24 FY28-30 Build FTTP at pace, nationwide Migrate customers to FT
Slide 17: Drive Consumer growth through converged propositions and services
BT Group plc FY24 results 16 May 2024 17 Drive Consumer growth through converged propositions and services Growing converged Largest 5G base1 Market-leading FTTP base households (%) (m) (m) 12-13 30-50 5-6 9.5 23 2 FY24 FY28-30 FY24 FY28-30 FY24 FY28-30 Drive convergence of fixed, mobile Migrate cus
Slide 18: Capitalise on Business's unrivalled assets to restore growth
BT Group plc FY24 results 16 May 2024 18 Capitalise on Business’s unrivalled assets to restore growth Growing UK RGUs1 Improving Managed services Migrating units off legacy (m) revenue (£bn) networks2 (k) 11 1.5 5.1 8 4.7 0.1 FY24 FY28-30 FY24 FY28-30 FY24 FY28-30 Standardise and scale product portf
Slide 19: Digitise, automate and reskill to transform cost base and improve productivity
BT Group plc FY24 results 16 May 2024 19 Digitise, automate and reskill to transform cost base and improve productivity Gross annualised cost Reducing total headcount Closing business savings (£bn) (k) applications (k) 1.7 6 120 Further £3bn 75-90 3 0.5 Achieved £3bn FY24 FY28-30 FY24 FY28-30 FY24 F
Slide 20: Simon Lowth, Chief Financial Officer
BT Group plc FY24 results 16 May 2024 20 Simon Lowth Chief Financial Officer
Slide 21: Optimise the business portfolio and capital allocation
BT Group plc FY24 results 16 May 2024 21 Optimise the business portfolio and capital allocation Disciplined approach to capital allocation NFCF growth from FY25 (£bn) ~3.0 Consistent and predictable revenue growth Consistent and predictable ~2.0 EBITDA growth enhanced by cost transformation ~1.5 Mat
Slide 22: Outlook
BT Group plc FY24 results 16 May 2024 22 Outlook | Driving consistent and predictable growth in value FY25 End of decade Adjusted revenue1 0 – 1.0% Consistent and predictable growth Adjusted EBITDA1 ~£8.2bn Consistent and predictable growth ahead of revenue enhanced by cost transformation Reported c
Slide 23: Allison Kirkby, Chief Executive
BT Group plc FY24 results 16 May 2024 23 Allison Kirkby Chief Executive
Slide 24: Fully focussed on creating value
BT Group plc FY24 results 16 May 2024 24 Fully focussed on creating value Sharpened focus Peak investment has now passed driving a significant on becoming cashflow inflection the UK’s most trusted connector of people devices Investment into next Disciplined approach to and machines generation digita
Slide 25: BT Group plc FY24 results 16 May 2024
BT Group plc FY24 results 16 May 2024
Slide 26: Strategic enablers driving future growth
BT Group plc FY24 results 16 May 2024 26 Strategic enablers driving future growth Actuals Future BT Group FY23 FY24 FY28-FY30 Openreach FTTP premises passed 10.3m 13.8m 25m-30m Networks Openreach FTTP take up 30% 34% 40-55% 5G UK population coverage 68.1% 75% >98% Retail FTTP take up1 1.8m 2.6m 6.5m