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A BETTER BT FOR ALL OF US BT GROUP PLC H1 FY27 RESULTS
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BT Group Plc Forward -looking statements Certain information included in this announcement is forward looking and involves risks, assumptions and uncertainties that could cause actual results to differ materially from those expressed or implied by forward-looking statements. Forward-looking statements cover all matters which are not historical facts and include, without limitation, projections relating to results of operations and financial conditions and the Company’s plans and objectives for future operations. Forward-looking statements can be identified by the use of forward-looking terminology, including terms such as ‘believes’, ‘estimates’, ‘anticipates’, ‘expects’, ‘forecasts’, ‘intends’, ‘plans’, ‘projects’, ‘goal’, ‘target’, ‘aim’, ‘may’, ‘will’, ‘would’, ‘could’ or ‘should’ or, in each case, their negative or other variations or comparable terminology. Forward-looking statements in this announcement are not guarantees of future performance. All forward looking-statements in this announcement are based upon information known to the Company on the date of this announcement. Accordingly, no assurance can be given that any particular expectation will be met and readers are cautioned not to place undue reliance on forward looking statements, which speak only at their respective dates. Additionally, forward-looking statements regarding past trends or activities should not be taken as a representation that such trends or activities will continue in the future. Other than in accordance with its legal or regulatory obligations (including under the UK Listing Rules and the Disclosure Guidance and Transparency Rules of the Financial Conduct Authority), the Company undertakes no obligation to publicly update or revise any forward-looking statement, whether as a result of new information, future events or otherwise. Nothing in this announcement shall exclude any liability under applicable laws that cannot be excluded in accordance with such laws. Alternative performance measures This presentation includes a number of alternative performance measures (‘APMs’), which are not defined under IFRS and are therefore considered non-GAAP measures. These measures, including adjusted revenue, adjusted EBITDA, adjusted service revenue and normalised free cash flow, are used by management to assess the underlying performance of the group. APMs should not be considered a substitute for statutory measures and may not be directly comparable with similarly described measures used by other companies. Reconciliations between APMs and the most directly comparable IFRS measures are set out in the group’s Interim Announcement, available in the Investors section of the group’s website. 2
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BT Group Plc Allison Kirkby Chief Executive
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BT Group Plc 4 1. Re-presented on a continuing operations basis; 2. Excluding the impact of the TalkTalk acquisition H1 FY27 highlights | A strong first half, with further strategic momentum Delivering in a competitive market | Growth in revenue, EBITDA and NPS Strengthened network leadership | Historic double network award; 5G+ coverage at 81% Record full -fibre demand | Take-up 41%; base now >10m; line losses down Winning in the market | Growing Consumer converged base; strong Business order book Transformation on track | Halfway to £3.5bn FY30 target; PSTN switchover accelerating International JV planning underway | Preparing to create a scaled platform for multinationals Pension triennial | Funding agreement reached; deficit largely closed Outlook reconfirmed | NFCF c.£2bn in FY27 and c.£3bn in FY30; Interim dividend up 2% Stepping up for the country | TalkTalk purchase, awaiting conclusion of regulatory review 2 1
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BT Group Plc Our strategy Delivering for all Most satisfied and loyal customers Most engaged and empowered colleagues Positively impacting the country Generating superior returns for our owners Who we’ll become The UK’s most trusted connector of people, business and society BUILD the best, most trusted digital networks CONNECT customers so they thrive, as we grow, in a digital world ACCELERATE our modernisation to restore leadership in everything we do How we’ll win Sustained service revenue growth Adjusted EBITDA growth ahead of revenue NFCF to £3bn Mid-term financial guidance Why we’re here WE CONNECT FOR GOOD 5
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BT Group Plc 6 Strategy progress in H1 FY27 One team with a customer-first, delivery culture Colleague engagement continues to improve, reaching highest level since 2023 A radically simpler portfolio, products and platforms Preparation continues for International JV with Verizon; transformation accelerating, legacy units down 69%, TLR down 11% IT, enabled by data and Al, as a real competitive advantage Scaled AI adoption and upskilling; AI Ops programme to enhance customer experience via ServiceNow platform Trusted leader for digital inclusion, resilience and sustainability Acquired TalkTalk to protect service continuity for 2.5m customers; awaiting regulatory review to conclude The best FTTP everywhere in the UK >10m now connected; record H1 net adds of 1.1m; we now expect to reach our 25m build target in March The best, most resilient mobile network 5G+ population coverage now at 81%, up from 73% in March The best network that differentiates us from competition BT and EE win historic double broadband and mobile awards Leadership in network innovation for the country Launched the UK’s first commercial 5G+ network slicing service for consumers and businesses The most loved and trusted brands Behind Brilliant Things brand relaunch of BT, supported by new Mobile, TV, and Security products; Plusnet brand refreshed in October The best connectivity products for life and work Launches include AI Receptionist and Mission Boost in Business, EE One Up in Consumer, and Fast Lane across both The most effortless, personalised experiences NPS up 5.6pts to 33.4pts1, improving across all retail brands The best partners for solutions beyond connectivity Launched new cybersecurity proposition with Microsoft; first non-US partner for Anthropic's Project Glasswing; only EE offers iPhone Handoff 9 10 11 12 1 2 3 4 5 6 7 8 BUILD the best, most trusted digital networks CONNECT customers so they thrive, as we grow, in a digital world ACCELERATE our modernisation to restore leadership in everything we do 1. Re-based for the exclusion of International; 2. Excluding the impact of the TalkTalk acquisition
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BT Group Plc 7 We have unrivalled network scale, customer reach and trust BT and EE Full Fibre Recognised by #1 Advanced Full Fibre First major provider to offer 8Gbps using XGS- PON technology #1 Openreach record fibre connections 1.1m net adds in H1,now reaching >10m customers 1.1m EE Recognised by Fast Lane on 5G+ UK’s first network slice for consumers and small businesses Consumer growing mobile +86k postpaid net adds, best H1 in four years; 81% 5G+ coverage H1 26 H2 26 Oct-26 8m 9m >10m 81% #1 H1 26 H2 26 H1 27 61k 43k 86k Unmatched national infrastructure Market-leading retail share
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BT Group Plc 8 Openreach | Record FTTP connections, strong EBITDA growth Ethernet revenue (£m) Broadband revenue (£m) Base (k)Base (k) 420 418 41519,688 19,274 18,908 ARPU (£) ARPU (£) FTTP footprint has reached 24.1m, we now expect to reach our 25m build target in March Record connections , bringing our market-leading FTTP take-up to over 41%; now surpassed 10m connections Line losses reduced, as FTTP footprint increases Met all Ofcom QoS standards, ‘Excellent’ Trustpilot rating Transformation delivering with EBITDA growth of 4% ahead of revenue, faults down 16%, direct labour down 15% H1 FY26 H2 FY26 H1 FY27 1,988 1,961 2,037 +2% +38% Copper FTTP growthFTTP H1 FY26 H2 FY26 H1 FY27 +1% H1 FY26 H2 FY26 H1 FY27 +7% H1 FY26 H2 FY26 H1 FY27 574 567 577 16.7 16.8 17.8 228 225 231 +1% 8
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BT Group Plc Consumer | Winning with customers, resilient financial performance Base (k) 8,210 8,224 8,217 Base (k) 13,924 13,967 14,053 H1 FY26 H2 FY26 H1 FY27 4,684 4,810 4,783 2% H1 FY26 H2 FY26 H1 FY27 3,932 3,921 3,939 Broadband Mobile Revenue (£m) -1% H1 FY26 H2 FY26 H1 FY27 2,063 2,047 2,013 -2% H1 FY26 H2 FY26 H1 FY27 +3% Revenue (£m) H1 FY26 H2 FY26 H1 FY27 +3% H1 FY26 H2 FY26 H1 FY27 -3% 9 Service revenue (£m) Total revenue (£m) 1% 0% Voice Service revenue ex voice Revenue returned to growth up 2%, with 12% growth in equipment Service revenue stable, despite 1pp headwind from voice Customer base growth with mobile net adds of 86k and 26k TV; modest 7k decline in broadband Record fibre adoption, increasing to 58% of the broadband base Converged homes grew further, up >1pp to 27.1% NPS improved in all three brands Strong focus on productivity and efficiency offsetting headwinds and increased brand investment ARPU (£) ARPU (£) 41.9 41.5 40.8 19.3 19.2 19.8 1,613 1,607 1,658 Voice Service revenue ex voice
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BT Group Plc Business | Strong customer momentum, foundations for growth Wholesale and other revenue (£m) 10 Service revenue down 1%; up 1% excluding a 2pp voice drag FTTP connections up 29% to 356k High double -digit order growth, with major wins and renewals across public and private sectors NPS improved, up 5pts, driven by continued improvements in CPS Expanded AI and security solutions, including AI from BT and deepened Microsoft partnership Transformation accelerating, legacy units down 53% Revenue generating units (k) Units on legacy networks (k) 590 3847,566 7,4797,665 821 H1 FY26 H2 FY26 H1 FY27 803 -1% H1 FY26 H2 FY26 H1 FY27 +1% H1 FY26 H2 FY26 H1 FY27 2,589 2,668 2,574 H1 FY26 H2 FY26 H1 FY27 -1% 1% -1% Service revenue ex-voice Equipment Voice Service revenue growth ex-voice Total revenue growth Corporate and public sector revenue (£m) Total revenue (£m) Small and medium business revenue (£m) 808 795 1,094 1,196 1,078 687 677 693
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BT Group Plc Winning awards, recognised as Customer's Choice in Gartner's Voice of the Customer for Global WAN Services Secured major customer wins, including contract extensions with Eurocontrol and AIA Global Fabric gaining traction, with 81 PoPs across 23 countries and Atos now live on the platform Like -for-like EBITDA up £24m driven by cost discipline and transformation initiatives Martijn Blanken is now CEO of BT International and JV CEO designate Closing of JV expected in H2 2027; BT to receive $625m from Verizon at closing International | Improving performance, on track to complete JV Greater scale and investment capacity Faster growth and innovation Broader customer reach Sharper domestic focus 11 3,000+ Multinational customers 180+ Countries c.$4bn Combined annual revenue
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BT Group Plc TalkTalk 12 Safeguarding vulnerable customers and households and their connections Supporting critical national infrastructure providers across health, emergency services, defence, education, transport, banking and government Awaiting regulatory review to conclude Clive Selley (ex Openreach CEO) leading stabilisation and integration planning of the acquisition Acquisition will become value accretive as the business is stabilised and synergies are realised 1.5m Retail customers 1.0m Wholesale customers 75k Ethernet customers 2.5m Customers protected FY27 impact comprises of consideration, NFCF and specifics For FY27 BT will report the acquired business as a separate segment c.£400 m Estimated FY27 cash impact Debt-free basis
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BT Group Plc Patricia Cobian Chief Financial Officer
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BT Group Plc H1 FY25 H2 FY25 H1 FY26 H2 FY26 H1 FY27 FY 30 1. Since FY25, re-presented excluding International Transformation | On track Transformation programme on track, delivering a simpler, more agile and efficient BT TLR down 11% to 90k; DLR down 10% and sub-con down 16%; FY30 TLR target now 65-70k Costs reducing as legacy reduces, processes simplified, and technologies modernised, with energy usage down 7%, PSTN migration proceeding at pace with lines down 1.1m in H1 Direct labour Sub-contractors H1 FY26 H2 FY26 H1 FY27 29 29 24 14 Cumulative gross annualised cost savings (£m) 1 0.4 0.9 1.1 1.4 1.7 3.5 H1 FY26 H2 FY26 H1 FY27 3.1 1.9 0.9 73 69 66 Units on legacy networks (m) Total labour resource (k) 102 98 90 1 -10% -16%-69%
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BT Group Plc 15 Pension | Funding agreement reached 2026 funding plan consistent with approach taken in last three triennials Reduction of £2.7bn deficit at June 30 th to c.£0.3bn, via issuance of zero-coupon bonds consistent with value of 2023 contribution schedule, with additional bond (NPV £282m) maturing in FY34 Enhanced agreement with BTPS includes raised dividend headroom; reduced trustee discretion on returning surplus; new charge over EE assets 2017 2020 2023 2026 c.0.3 2026 (Post bonds) BTPS triennial funding deficit (£bn) June 2026 funding plan vs June 2023 funding plan (£m) 2.73.7 8.0 11.3 15 420 FY28 FY29 FY31 FY34 2026 bond maturities 2023 deficit contributions ABF payments - unchanged FY32 180 FY33 180 FY30 420180 420 1. £30m brought forward to FY27 1 600 180 180 590 600 180 180 590 600 180 180 590 600 180 180 590 180 180 180 180 180 180
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BT Group Plc 16 1. On an adjusted basis Customer facing units | H1 FY27 summary Openreach | Revenue up 1%, with higher FTTP mix and price increases offset by a lower broadband customer base; EBITDA up 4%, driven by ongoing cost transformation Consumer | Revenue up 2% driven by higher handset revenues; service revenue flat, up 1% excluding voice; EBITDA down 1% driven by voice migration and brand refresh costs, partially offset by cost transformation Business | Revenue and service revenue down 1%, up 1% excluding voice; EBITDA down 7% driven by migration from legacy products and higher BT brand relaunch costs Intra -group items | Price increases and stronger FTTP performance by BT brands than external CPs H1 FY27 Revenue Service revenue EBITDA £m Change YoY % £m Change YoY % £m Change YoY % Openreach 3,160 1 3,160 1 2,238 4 Consumer 4,783 2 3,939 - 1,255 (1) Business 2,574 (1) 2,348 (1) 601 (7) Other 6 - 6 - 3 - Intra-group items (1,773) (3) (1,768) (3) Total 8,750 1 7,685 (1) 4,097 1 1 1 1 Revenue Service revenue EBITDA 1 1 1
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BT Group Plc Adjusted revenue | Driven by higher handset revenues in Consumer Service revenue | Down 1%; flat excluding voice drag Adjusted EBITDA | Up 1% driven by ongoing cost transformation more than offsetting voice decline Normalised free cash flow | Down driven by a net cash outflow in working capital and working capital programmes Dividend | Up 2% 17 Financial performance | On track H1 FY27 H1 FY26 Change £m £m YoY% Adjusted revenue 8,750 8,696 1 Service revenue 7,685 7,726 (1) Adjusted EBITDA 4,097 4,060 1 Capital expenditure 2,282 2,390 (5) Normalised free cash flow 236 569 (59) Dividend (pps) 2.5 2.45 2
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BT Group Plc Normalised free cash flow | Progression to c.£2bn 18 As expected, H1 impacted by timing effects including Ofcom decision on anchor price, receivables timing and repayment of working capital financing FY27 NFCF growth to be driven primarily by lower cash capex and EBITDA growth Handset programmes help mitigate the working capital impact of higher equipment revenue Illustrative bridge; movement bars are not to scale FY26 excluding International reflects its presentation as a discontinued operation. Expected FY27 International NFCF c.£50m loss FY27 YoY movements FY26 NFCF as reported £1.5bn International FY26 excluding International £1.65bn EBITDA Cash capex Interest, leases and tax TAR anchor pricing and working capital and other FY27 NFCF guidance c.£2bn £150m
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BT Group Plc Invest for growth Meet pension obligations Returns to shareholders 19 1. Capital expenditure (capex on an accrued basis excluding spectrum); 2. Excluding impacts of the TalkTalk acquisition Rigorous and disciplined approach to capital allocation Capex1 (£bn) Pension deficit (£bn) Net debt excluding lease liabilities (£bn) Dividend per share (pps) Maintain strong balance sheet and prudent liquidity policy Target a BBB+ through cycle rating Smooth, long-dated maturity profile BTPS derisking investments; broadly hedged to interest rates Affordable, debt-funded recovery plan payments Co-investment vehicle offers refund opportunity post FY32 Affordable, sustainable dividend growth delivers long term returns to shareholders Low to mid single digit dividend growth until BBB+ metrics reached Residual cash flow available for enhanced distributions thereafter Capex past peak NFCF increases from £1.65bn in FY26 to £3bn in FY30 Free cash flow increases more than NFCF as restructuring reduces to FY30 FY30FY26 FY27 8.3 2026 2026 2030 Fully funded FY26 FY27 FY30 15.8 5.0 (POST BONDS) 0.3 2.7 FY30FY26 FY27 4.2 – 4.3 19 2 Maintain strong balance sheet
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BT Group Plc Allison Kirkby Chief Executive
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BT Group Plc FY27 outlook Mid-term guidance Adjusted revenue £17.1 - £17.6bn Sustained growth Adjusted service revenue £15.1 - £15.4bn Sustained growth Adjusted EBITDA Growth, £8.1 - £8.2bn Sustained ahead of service revenue enhanced by cost transformation Capital expenditure £4.2 - £4.3bn Reduces by >£1bn from FY26 level Normalised free cash flow c.£2.0bn c.£3.0bn by end of decade Dividend Low to mid -single digit growth Low to mid -single digit growth until metrics consistent with BBB+ are reached; thereafter residual cash flow will be available for enhanced distributions Guidance now reflects our continuing business 1. Excluding impacts of TalkTalk; Capital expenditure (capex on an accrued basis excluding spectrum); Outlook | Financial performance on track, guidance reconfirmed 21 1 2
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BT Group Plc H1 FY27 highlights | A strong first half, with further strategic momentum 1 22 Delivering in a competitive market | Growth in revenue, EBITDA and NPS Strengthened network leadership | Historic double network award; 5G+ coverage at 81% Record full -fibre demand | Take-up 41%; base now >10m; line losses down Winning in the market | Growing Consumer converged base; strong Business order book Transformation on track | Halfway to £3.5bn FY30 target; PSTN switchover accelerating International JV planning underway | Preparing to create a scaled platform for multinationals Pension triennial | Funding agreement reached; deficit largely closed Outlook reconfirmed | NFCF c.£2bn in FY27 and c.£3bn in FY30; Interim dividend up 2% Stepping up for the country | TalkTalk purchase, awaiting conclusion of regulatory review
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BT Group Plc Q&A
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BT Group PlcBT Group Plc 25 Glossary APM Alternative performance measure ARPU Average revenue per user CAGR Compound annual growth rate CPS Corporate and public sector DLR Direct labour resource EBITDA Earnings before interest, tax, depreciation and amortisation FTTP Fibre to the premises NFCF Normalised free cash flow NPS Net Promoter Score PoP / PoPs Point / points of presence pp Percentage point pps Pence per share PSTN Public switched telephone network QoS Quality of service TLR Total labour resource Service revenue Revenue from services excluding equipment revenue Yo Y Year on year Key terms and abbreviations used in this presentation