BT Group plc

Building
Connecting
Accelerating
BT Group plc
Annual Report 2024

What connects us 
defines us
Our network enables 
millions of customers 
to make trillions of 
connections between 
the people, places and 
things that matter most 
to them. 
Each connection carries data. And it 
creates data too. We’ve collated it here 
to reveal a year in the life of customers 
who’ve never relied on us more.
 
The video calls that bring families 
together. The unbroken streams of 
shows and sports. The games, apps, 
deliveries and chats. 
 
Fixed or mobile, at home, work or 
play, our growing network makes these 
connections happen. And we have the 
storytelling stats to show it. 
Mobile coverage
We operate more than 19,500 mobile sites across the UK, 
including 1,350 brand new mast sites built since 2013. 
That’s a new mobile site being built every three days for 
the past decade to elevate the UK’s mobile connectivity.
 4G
99%
Our 4G population coverage in each 
individual nation now stands at: 
England (99%), Northern Ireland (98%), 
Scotland (99%), and Wales (98%)
 5G
75%
Our 5G population coverage in each 
individual nation now stands at: 
England (77%), Northern Ireland (29%), 
Scotland (73%), and Wales (77%)
 Fibre coverage
We’re building our new full fibre network across the UK, from rural 
villages to city centres, with 13.8m premises covered, equivalent 
to over 40% of UK homes and businesses already able to access 
ultrafast, ultra-reliable broadband. We’re reaching more properties 
every day – including one million just in the final quarter.
40%
Our fibre geographic coverage in each 
individual nation now stands at: 
England (10.9m), Northern Ireland (0.8m), 
Scotland (1.2m), and Wales (0.9m)
This map is a visual representation of network 
coverage and should not be taken as 100% accurate. 

Every connection 
tells a story
The connections you make 
create a picture of modern 
life in the digital world.
30m
of you used our 
services as customers.
200m
of your devices were 
connected to our network.
94,722
Petabytes consumed 
One Petabyte is one million Gigabytes. 
With 94,722Pba, you could stream ‘Barbie’ 
over 7.2 billion times. In 4K quality. 
a  Petabytes consumed is for calendar year 2023.
7.2+ billion
a

19,500
Further
We have more than 19,500 mobile sites across the UK, 
including 1,350 new mast sites built from scratch 
since 2013. That’s a brand new site every three days 
over the past decade.
60,000mi2
Adding over 60,000 square 
miles of 4G mobile coverage 
across the UK since 2013. 
That’s more than 60% of 
the UK.
 
121%
Faster
Our 5G infrastructure has increased average 
download speed by 121% since 2019.
1.5bn
Talking the talk
You spent 1.5 billion minutes talking on voice and video 
calls with our EE mobile network in the last ten years. 
That is nearly 3,000 years of talking.
~35Tbps
A network record peak 
You helped create more of these 
record peaks in network traffic than ever.
Online annual review
To explore a year in the life of 
our customers and colleagues, 
visit our online review.
bt.com/annualreview

Revenue
£20.8bn 1%
(FY23: £20.7bn)
Profit before tax
£1.2bn (31)%
(FY23: £1.7bn)
Adjusteda EBITDA
£8.1bn 2%
(FY23: £7.9bn)
Cash flow from operating activities 
£6.0bn (11)%
(FY23: £6.7bn)
Normalised free cash flowb
£1.3bn (4)%
(FY23: £1.3bn)
Basic earnings per share
8.7p (55)%
(FY23: 19.4p)
Capital expenditure
£4.9bn (3)%
(FY23: £5.1bn)
Strategic report
A message from our Chairman
2
A message from our Chief Executive
4
Executive Committee
8
Our business model
10
Trends shaping our industry and business
16
Our strategic framework
18
Progress against our strategic framework
20
Our people
30
Our Manifesto
34
Our stakeholders
40
Non-financial and sustainability information statement
46
Our key performance indicators (KPIs)
48
Group performance
50
Regulatory update
58
A message from the Chair of Openreach
60
Risk management
61
Our principal risks and uncertainties
63
Task Force on Climate-related Financial Disclosures
71
Viability statement
81
Corporate governance report
83
Financial statements
131
Additional information
231
This Strategic report was approved by the Board on 15 May 2024 
and signed on its behalf by the Chairman. 
Adam Crozier
Chairman
15 May 2024
You can find our cautionary statement on forward-looking 
statements on page 234.
Pages 1 to 82 are the Strategic report. It includes our 
business model, progress against our strategic framework, 
our key performance indicators, group performance and our 
principal risks and uncertainties.
You can find our Corporate governance report on pages 83 
to 130. It includes the Directors’ report and information on 
our directors’ remuneration.
When we say ‘BT Group’ and ‘the group’ in this document we 
mean BT Group plc – made up of our subsidiaries, customer-facing 
units and internal corporate units. When we say ‘FY24’ we mean 
the financial year that ended on 31 March 2024, and we use the 
same approach for any other years.
Look out for these throughout the report
Reference to another page in the report 
Reference to further reading online
BT Group plc Annual Report 2024
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Strategic report
Contents
a Adjusted EBITDA is group profit or loss before specific items, net finance 
expense, taxation, depreciation and amortisation and share of post tax 
profits or losses of associates and joint ventures. See page 232.
b We define normalised free cash flow on page 232.

Connecting the UK 
while transforming 
our business.
BT Group has made good progress in 
the last few years and yet we still 
have an enormous transformation 
ahead of us if we’re to truly 
modernise the way we operate for 
the benefit of all our stakeholders. 
As our investment expenditure 
reduces and as Allison’s leadership 
brings renewed focus and 
accelerated delivery, I’m confident 
that the long-term prospects for 
BT Group are extremely strong.
Adam Crozier
Chairman
The connections that we 
provide are more critical 
than ever, and our customers’ 
needs and demands are 
constantly evolving. 
Keeping the UK’s homes, public services and businesses 
connected places a huge responsibility on BT Group – 
one that we’ve continued to meet successfully in 
FY24, while sustainably growing our business and 
continuing to transform our operations. 
We’ve also achieved this while facing significant 
change across the organisation, including the 
appointment of our new Chief Executive.    
BT Group plc Annual Report 2024
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Strategic report
A message from our Chairman

Thank you to Philip
After five years as Chief Executive of BT 
Group, Philip Jansen stood down at the 
end of January 2024. Philip achieved a 
huge amount during his time, most notably 
setting our vision to provide full fibre 
connections to 25m premises across the 
UK by December 2026 – a target we are 
well over halfway towards completing. 
Philip’s tenure was also marked by a 
number of exceptional external challenges. 
Covid-19 caused immediate changes to 
everyday life and lasting shifts in how 
businesses and society operate, and BT 
Group successfully adapted to both under 
Philip’s leadership. He also steered the 
business through the impacts of events 
such as the cost-of-living crisis, high 
inflation rates and the invasion of Ukraine.
I’d like to take the opportunity to again 
thank Philip personally, and on behalf of 
the Board, for everything he delivered for 
BT Group and the foundation he’s set for 
our future success. I wish him all the best 
with his future endeavours.   
Welcoming Allison
In February 2024, we welcomed Allison 
Kirkby as our new Chief Executive. She is a 
proven leader, with deep sector experience 
and a history of transforming businesses.
Having served as a member of our Board 
since 2019, Allison already has a full 
understanding of our long-term strategic 
objectives. On the following pages, she 
sets out how she’s shaping this strategy to 
deliver for our customers and stakeholders 
better and faster. 
This will be achieved by focusing on building 
and connecting customers to our networks, 
and accelerating the transformation of BT 
Group to improve our customer service and 
for the benefit of all our stakeholders. The 
Board and I look forward to supporting this 
agenda and Allison’s leadership in her new 
executive capacity.
Moving beyond peak investment
We’ve steadily accelerated the delivery 
of our unprecedented investment 
programme, creating the UK’s digital 
backbone and enabling growth in its 
economy and businesses. Building and 
connecting faster hastens the delivery 
of returns to our shareholders.
FY24 is the year in which we passed the 
peak of our capital expenditure on this 
programme, enabling us to see greater 
normalised free cash flow over the coming 
years. This gives us confidence to increase 
the full year dividend to 8.0 pence per 
share while reaffirming our progressive 
dividend policy for our loyal investors. 
Enabling better 
outcomes for the UK
While change both inside and outside 
BT Group is now constant, our purpose 
endures: We Connect for Good. Our 
network investments, alongside our 
Manifesto commitments to deliver 
responsible, inclusive and sustainable 
technology, create a foundation for greater 
inclusivity and wider benefits to society. 
We’re committed to ensuring that the 
networks we provide, and the essential 
services they enable, are accessed and 
utilised as widely as possible across the UK. In 
2021, we set an ambitious goal to reach 25m 
people in the UK with digital skills by March 
2026, and we’re on track to hit that target. 
We also continue to move forward on our 
wider sustainability goals, with a commitment 
to build towards a circular BT Group by the 
end of March 2030, and a circular tech 
ecosystem by end of March 2040.
We’ve continued to make clear progress 
on reducing our environmental impact, 
with a 61% reduction in operational carbon 
emissions intensity (compared to FY17 
levels) – but we want to go further too, both 
in our own operations but also within the 
wider ecosystem we enable. That’s why 
we’ve set a target to achieve net zero carbon 
emissions in our operations by the end of 
March 2031, and for supply chain and 
customer carbon emissions by the end 
of March 2041.
Engaging with our stakeholders
The massive investments we’ve been 
making, amid highly challenging economic 
conditions and constantly increasing data 
usage and demand, have created 
inflationary pressures on our business. This 
has an unavoidable impact on the prices 
we must charge our customers. We know 
these rises are never welcome, which is 
why it’s critical that the rationale behind 
them is fully explained and understood.
Our Consumer business was the first in the 
industry to incorporate Ofcom’s latest 
proposals on pricing, moving to a ‘pounds 
and pence’ structure so that customers 
have a clear view of costs across their 
contracted period. We’ve also continued 
to protect our social tariff and pay as you 
go customers from price increases, to 
ensure everyone is able to remain online.
We’re engaging with a broad range of 
stakeholders, including Ofcom, UK 
Government, the Digital Voice Advisory 
Board and Telecare Action Board, as we 
progress the switch from analogue to 
digital landlines. Along with other 
communications providers, we paused all 
non-voluntary migrations in December 
2023, and we now expect to have migrated 
all customers off the public switched 
telephone network (PSTN) by the end 
of January 2027, allowing us to align the 
programme with full fibre broadband 
customer upgrades where available. This 
timescale will ensure we get this right while 
delivering this essential programme to 
ensure the long-term resilience of our 
networks and services.
Board changes
In January 2024 we welcomed Raphael 
Kübler, Chief Operating Officer at 
Deutsche Telekom, to our Board. 
Raphael replaced Adel Al-Saleh as 
Deutsche Telekom’s nominated Board 
representative, and we look forward to 
working with him going forward.
In May of this year we also welcomed Tushar 
Morzaria to the Board as an Independent 
Non-Executive Director. Tushar brings a 
wealth of strategic financial management 
experience gained over 25 years of 
overseeing transformation programmes and 
strengthening risk and control frameworks 
in complex global organisations. 
Ian Cheshire and Iain Conn stepped down 
from the BT Group Board in July 2023, 
with Ruth Cairnie succeeding them in the 
roles of both Senior Independent Non-
Executive Director and Chair of the 
Remuneration Committee.  
I’m confident that the collective expertise 
and varied backgrounds of our Board 
members mean we have the right range 
of skills and experience to progress BT 
Group’s ambitions, while also meeting best 
practice and the guidelines set out in our 
Board Diversity and Inclusion Policy.
Looking ahead
BT Group has made good progress in 
the last few years and yet we still have an 
enormous transformation ahead of us if we 
are to truly modernise the way we operate 
for the benefit of all our stakeholders.
While we’ve a long way to go, our strategy is 
beginning to deliver, creating the next 
generation networks that connect the UK, 
while seeing clear improvements in 
operational efficiency and financial returns.
As our investment expenditure reduces 
and as Allison’s leadership brings 
renewed focus and accelerated delivery, 
I’m confident that the long-term prospects 
for BT Group are extremely strong.
Adam Crozier
Chairman
15 May 2024
BT Group plc Annual Report 2024
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Strategic report

Sharpening 
our focus.
Since her appointment as Chief Executive, 
Allison has visited BT Group sites across 
the UK, including:
BT Group built and connected 
customers to our next generation 
networks at record speed and 
efficiency over the past year, 
while continuing to grow 
revenue and EBITDA.
Allison Kirkby
Chief Executive
Watch our CEO reflect on 
her first few months in office.
bt.com/annualreview
Full fibre rollout: 
now at 13.8m premises
13.8m
Normalised free cash flow: 
raising targets to c.£3.0bn by 2030
c.£3.0bn
BT Group plc Annual Report 2024
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Strategic report
A message from our Chief Executive

Sharpening our focus on being the 
best we can be for our customers, 
for our shareholders and for the UK.
Early reflections
I’ve spent the last few months meeting as 
many of our customers and stakeholders 
as possible. Every interaction has 
confirmed to me that connectivity is the 
lifeblood of the UK’s society and economy. 
We provide the digital backbone for the 
nation; without us, life as we know it stops. 
That might sound dramatic, but it’s true – 
and it’s why everything we do has to be 
focused on supporting the customers who 
rely on us and living up to our purpose, to 
connect for good.
I’ve now visited close to 20 BT Group sites 
in the UK to meet with colleagues across 
our operations, and it’s been fantastic to 
see their commitment and passion for 
what we do. As they’re the people who 
connect with our customers most often, 
hearing their perspectives on our 
strengths, opportunities and challenges 
has also been invaluable as I’ve shaped 
my thinking.
These conversations have deepened my 
appreciation of the fantastic assets that 
make us unique. We’re unrivalled in our 
experience of operating critical national 
infrastructure, our breadth of private and 
public sector customer relationships, our 
research and development credentials, 
our partnerships with the world’s leading 
technology firms, and above all our brilliant 
people who underpin everything we do. 
We must harness these strengths as we 
move into the next phase of BT Group’s 
transformation. We’re over the peak of 
our investment in fibre-to-the-premises 
(‘FTTP’ or ‘full fibre’); take-up of 5G and 
FTTP is growing; and we’re seeing higher 
customer satisfaction across the business 
as our networks and services provide ever-
improving experiences. But we can and 
must go faster in utilising the full power of 
our networks. We’ll do this by sharpening 
our focus on being the best we can be for 
our customers, for our shareholders and 
for the UK. 
Our financial performance
Over the past year we delivered a solid 
operating and financial performance, with 
growth in both adjusted revenue and 
EBITDA. We passed peak capex on our 
full fibre broadband rollout and achieved 
£3bn of annualised cost savings a 
year ahead of schedule. 
This means we’ve now reached the 
inflection point where we emerge from 
the most capital-intensive phase of our 
investment programme. It also gives us the 
confidence to provide new guidance that 
significantly increases our short-term cash 
flow and sets out a path to more than 
double our normalised free cash flow over 
the next five years. This enhanced cash 
flow allows us to increase our dividend 
for FY24 by 3.9% to 8.0 pence per share. 
We’re also setting an additional £3bn 
of gross annualised cost savings to be 
reached by the end of FY29.
I know BT Group’s share price has 
underperformed in recent years, but we 
now have a clear, positive path that aims to 
drive significant value for all stakeholders 
going forward. 
Connecting the UK
Our full fibre rollout has delivered the UK’s 
largest private national infrastructure 
programme, on time and on budget. It 
will deliver huge benefits to the UK, with 
nationwide full fibre broadband predicted 
to increase national GDP by £72bn  – or 
about 2% – by 2030. 
We’ve built at record speed and efficiency 
this past year, with an additional 3.5m 
premises passed, taking us to 13.8m 
premises covered – equivalent to well over 
40% of UK homes. In fact, we’re currently 
the fastest builder of fibre anywhere in 
Europe, and at a lower cost than our major 
competitors in the UK. More importantly, 
we’re also seeing industry-leading 
customer take up of our FTTP networks 
at 34% – and this is even stronger where 
we built two or more years ago, with 
take up of over 50%. 
We’ve continued our rollout of 5G, which 
now covers 75% of the UK population, and 
grown our 5G-ready customer base to 
11m. Our overall mobile network has 
increased to 88% of the UK by geography, 
including new mobile connectivity in 33 
London Underground stations. We’re also 
the only network provider to have hit our 
Shared Rural Network commitment to 
Government, bringing mobile coverage to 
many parts of the country for the first time. 
The customer experience uplift is evident 
from the scale of traffic increase that we 
see when new locations are connected. 
In remote parts of Scotland, for example, 
we have seen this drive new commerce 
for businesses, enable people to use 
online services for the first time, and 
connect emergency services in the 
most remote locations.
We’re not just providing brilliant fixed and 
mobile networks – we’re also combining 
them with the key services our customers 
need to live, work, game and learn. For 
example, we launched EE Fibre 1.6Gbps, 
offering the fastest home broadband 
speeds of any major provider, and a new EE 
TV app and set-top box, fully integrated 
with Apple TV 4K. For businesses, we 
announced Global Fabric, which will 
enable organisations to seamlessly and 
securely connect to multiple clouds and 
seize the advantages of digital automation 
and artificial intelligence (AI), and we’ve 
also launched new customer solutions via 
collaborations with companies such as 
Google, SAP and Microsoft. These are 
reflected in strong customer satisfaction 
metrics across the business, and external 
accolades such as EE being named as 
RootMetrics’ number 1 mobile network 
for the 21st time. 
BT Group plc Annual Report 2024
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Strategic report
Having passed peak 
capex on our full fibre 
broadband rollout and 
achieved our £3bn cost 
and service transformation 
programme a year ahead 
of schedule, we’ve now 
reached the inflection 
point on our long-term 
strategy.

A message from our Chief Executive continued
Our strategy 
for growth
To deliver long-term sustainable 
growth, we’ve set ourselves five priorities 
within our overall strategic framework:
Grow Consumer through 
converged solutions
Led by EE, Consumer will win more 
UK households by creating deeper relationships 
on the back of leadership in full fibre broadband, 
5G and convergence.
Capitalise on Business’ unrivalled 
assets to restore growth 
Business will help customers grow through 
next generation connectivity solutions, 
leading managed services and outstanding 
customer experience.
Grow Openreach and get strong 
returns on full fibre broadband 
Openreach is building the UK’s largest full fibre 
broadband network. It will get cost advantage 
from this scale, upgrade customers to the new 
platform, continue to provide industry-leading 
service and strengthen all its communications 
provider relationships.
Transform our cost base and 
be more productive
Across BT Group we will fundamentally change 
what we do and how we work. We’ll automate, 
digitise and close old systems, processes and 
networks. This will cut costs, help us do things 
faster and bring better experiences to our 
customers and colleagues.
Optimise our company portfolio 
and capital allocation 
We will keep strengthening our portfolio by 
buying, selling or partnering to push our strategy 
forward. We’ll invest in next generation networks 
and solutions to meet customers’ needs and 
deliver shareholder returns. As we finish rolling 
out full fibre broadband, we’ll reduce capital 
expenditure by c.£1bn and increase normalised 
free cash flow.
BT Group plc Annual Report 2024
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Strategic report

As we move into the next phase of BT Group’s 
transformation, we are sharpening our focus 
to be better for our customers and the country, 
by accelerating the modernisation of our 
operations, and by exploring options to 
optimise our global business.
Strategy
This year’s Annual Report provides many 
more examples of how our long-term 
strategy is delivering: we’re building and 
connecting our customers to next 
generation networks at pace; we’re 
creating standout customer experiences; 
and we’re leading the way to a bright and 
sustainable future.
While building our next generation IT and 
network infrastructure, we’re proactively 
moving customers off legacy platforms 
that don’t deliver the full benefits of digital 
connectivity. We recently completed the 
sunsetting of our 3G mobile network, and 
we’re continuing to move customers 
onto digital IP-based services. We now 
expect to have completed this shift by 
January 2027.
We are also radically simplifying our 
product and customer journeys by 
partnering with leading technology 
players and responsibly adopting new 
technologies such as AI to enable 
customer benefits and business growth. 
In October, we launched our new 
integrated EE digital platform to drive 
convergence. This included new 
connectivity propositions, building on 
our FTTP and 5G leadership, improved 
products and services and a simpler, better 
set of customer journeys. Overall this is 
driving a better customer experience, with 
those that have migrated showing a higher 
rate of convergence and NPS. 
Our strategy is delivering, and when BT 
Group wins, the UK wins. But the world 
around us is moving at pace, and so must 
we. I will set out more on this in the coming 
months, but I am already clear that my 
ambition for BT Group is to be the UK’s 
most trusted connector of people, devices 
and machines.
The digital opportunity for the UK
Having spent the last decade running 
telecoms companies in Scandinavia, I’ve 
seen first-hand how much more digital and 
connected those nations are. For example, 
Sweden’s equivalent FTTP take-up rate is 
over 80%, and they have far greater 
adoption of the new services that this 
connectivity enables. Digital platforms are 
embedded and aligned across all aspects 
of everyday life, with online banking, 
payment, public services and healthcare 
apps used at much higher rates than in 
the UK.
What I saw in Sweden is a clear example 
of how a better-connected society can 
unlock huge benefits for both 
governments and citizens. As well as 
reducing costs, bureaucracy, fraud and 
complexity, these digital services also 
have great potential to help society 
decarbonise, and to underpin the creation 
of new, technology-based models that 
empower businesses to compete in an 
increasingly digital, global marketplace.
That’s why I’m committed to ensuring BT 
Group plays a key role in helping the UK 
catch up and realise the benefits of a fully 
connected society. This isn’t something 
that’s nice to do – it’s critical to the 
UK’s future.
Having made huge investments into 
UK infrastructure and services, we must 
ensure everyone now benefits from them. 
And all the right foundations are in place to 
enable this. As well as our own networks, 
we have regulatory stability, government 
policy that incentivises further investment, 
and strong competition spurring all of us in 
the industry to keep innovating.
I know from my years of experience in the 
industry that the most successful telcos 
around the world are national champions 
who leverage their history, their assets and 
technology leadership to create value for 
all. Building on the progress we have made, 
and with the transformation of BT Group 
now accelerating, we are moving into a 
phase where the full potential of our 
brands, networks, products and services 
can be realised.  This will unlock benefits 
for UK citizens, businesses and the 
economy as a whole – and I personally 
can’t wait to start delivering for all our 
stakeholders.
Allison Kirkby
Chief Executive 
15 May 2024
BT Group plc Annual Report 2024
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Strategic report

The Executive Committee is 
chaired by the Chief Executive. 
So that there is a single point 
of accountability, the Chief 
Executive (or a delegate) 
takes all the decisions.
The Executive Committee provides 
input and recommendations to 
help the Chief Executive:
– develop group strategy and budget 
for Board approval
– execute the strategy once the 
Board approves it
– assure the Board on overall 
performance and how we’re 
managing risks.
Allison Kirkby
Chief Executive
Appointed Chief Executive February 2024. 
Appointed to the Board March 2019. 
From May 2020 until becoming BT Group 
Chief Executive, Allison was President & 
CEO of Telia Company. She was 
previously President & Group CEO of TDC 
Group until October 2019, and President 
& Group CEO of Tele2 AB from 2015 to 
2018, having been Tele2 AB’s Group CFO 
from 2014.
Simon Lowth
Chief Financial Officer
Appointed July 2016.
Simon was CFO of BG Group before 
the takeover by Royal Dutch Shell in 
February 2016. Before that he was CFO 
of AstraZeneca, and Finance Director 
and Executive Director of ScottishPower. 
Simon was also previously a Director of 
McKinsey & Company.
Key changes this year
The following changes to the Executive 
Committee took place during the year:
– Philip Jansen stood down as Chief 
Executive. 
– Allison Kirkby was appointed as Chief 
Executive. 
– Ed Petter stood down as Corporate 
Affairs Director on leaving BT Group.
– Tom Engel was appointed Corporate 
Affairs Director (Interim).
Harmeen Mehta
Chief Digital and Innovation Officer
Appointed March 2021.
Harmeen is a global leader in incubating 
new businesses and creating revenue 
streams, with over 25 years’ experience of 
digital transformation and running 
technology-led businesses.
Before joining BT Group, Harmeen was 
group CIO and Head of Cloud & Security 
business at Bharti Airtel. Before that, she 
was CIO at Bank of America Merrill Lynch, 
BBVA and HSBC. Harmeen is a Non-
Executive Director of Lloyds Banking 
Group, and a board member of TM Forum. 
Tom Engel
Corporate Affairs Director (Interim)
Appointed December 2023.
Before BT Group, Tom held 
communications leadership positions at 
DFID, DWP and the Natural History 
Museum. He has worked in the UK and 
South African parliaments and served as 
a Special Adviser in the Blair government. 
Consulting roles have seen Tom work for 
a wide range of clients, from pop groups to 
multinationals, trade bodies to charities. 
Whilst based in Hong Kong, he helped to 
grow and sell a private PR company. 
BT Group plc Annual Report 2024
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Strategic report
Executive Committee

Marc Allera
CEO, EE and Consumer
Appointed September 2017.
Marc is also Chairman and a BT appointed 
Director of the sports joint venture 
between BT Group and Warner Bros. 
Discovery. Marc was previously CEO of 
EE, and EE Chief Commercial Officer 
from 2011to 2015. He spent ten years at 
Three UK as Sales and Marketing Director 
and Chief Commercial Officer. Before 
that, Marc was General Manager of 
Sega UK and Europe. Marc is Chair of 
Jagex Limited.
Bas Burger
CEO, Business
Appointed CEO, Business January 2023. 
Appointed CEO, Global June 2017. 
Bas was formerly President, BT in the 
Americas, Global Services. He joined BT 
Group in 2008 as CEO Benelux. Before 
that he was Executive President and a 
management committee member at 
Getronics NV, where he ran global sales, 
channels and partnerships, developing 
the company’s international business. He 
was also CEO and Managing Director of 
KPN Entercom Solutions.
Sabine Chalmers
General Counsel, Company Secretary 
& Director Regulatory Affairs
Appointed General Counsel April 2018. 
Appointed Director Regulatory Affairs 
and Company Secretary in May and 
September 2021 respectively.
Before joining BT Group, Sabine was Chief 
Legal and Corporate Affairs Officer and 
Company Secretary of Anheuser-Busch 
InBev for 12 years. She also held various 
legal leadership roles at Diageo. Sabine is 
qualified to practise law in England and 
Wales and New York State. She is also a 
member of the Court of Directors of the 
Bank of England.
Howard Watson
Chief Security and Networks Officer
Appointed Chief Technology and 
Information Officer February 2016 and 
became Chief Technology Officer March 
2021. Appointed Chief Security and 
Networks Officer September 2022.
Howard’s expanded role puts security at 
the core of our business. He was formerly 
Chief Architect and Managing Director, 
global IT systems and led the technical 
teams behind the 2013 BT Sport launch. 
Howard joined BT Group in 2011 and 
has 40 years of telecoms experience. 
This includes time at Telewest 
Communications (now Virgin Media) 
and Cartesian, a telecommunications 
consultancy and software company.
Athalie Williams
Chief Human Resources Officer
Appointed December 2022.
Before joining BT Group, Athalie was Chief 
People Officer for BHP, the world’s largest 
mining and resources company. She led 
BHP’s organisation, people and culture 
transformation agenda and shaped their 
industry-leading inclusion and diversity 
agenda. Before that Athalie was General 
Manager, Cultural Transformation for 
National Australia Bank. She also spent 
14 years leading complex business 
transformation and change programmes in 
Australia and Asia as a consultant with 
Accenture (formerly Andersen Consulting).
Clive Selley
CEO, Openreach
Appointed February 2016.
Clive was formerly CEO, Technology, 
Service & Operations, CEO Innovate & 
Design and before that President, 
Global Services Portfolio & Service 
Design. Under the provisions of the 
Commitments, Openreach’s CEO 
cannot be a member of the Executive 
Committee. Clive attends Executive 
Committee meetings as appropriate.
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Strategic report

Our business model
The UK’s
leading
provider
BT Group is the UK’s leading fixed and mobile 
communications provider. We build and run 
the biggest fixed and mobile networks in 
the country. 
We operate in both wholesale and retail markets. Our customers 
include consumers, small, medium and large businesses, public 
sector organisations and other communications providers.
We create value by designing, building, marketing, selling and 
supporting network access, connectivity and related products to 
customers. We provide many of the fixed, mobile and converged 
connectivity solutions integral to modern life. They include 
broadband, mobile, TV, networking and IT services. We also 
sell other things – like handsets, gaming and insurance – to help 
our customers connect, communicate, share, be entertained 
and do business. 
A significant amount of what we earn goes back into maintaining 
and enhancing our fixed and mobile networks, improving 
customer service and developing new connectivity solutions – 
which bring value to customers and returns to shareholders. 
Through paying tax, interest, pension contributions and 
shareholder dividends, we contribute financially to a wide 
range of stakeholders.
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Strategic report

Our customers 
We meet our customers’ needs by giving them outstanding connectivity 
and curated solutions – often with our partners. 
Our Consumer brands provide mobile, 
broadband, landline, and entertainment 
services to customers, at home and on the 
move. Individuals and households typically 
buy our services on monthly, recurring 
subscriptions on 12 to 36 month contracts, 
or as pay-as-you-go propositions.
For our business and public sector customers 
in the UK and around the world, we provide 
connectivity, networking, cyber security, 
collaboration tools, cloud connectivity and 
cloud services. Small and medium-sized 
businesses (SMBs) buy our solutions on 
12 to 60 month contracts. Larger businesses 
and public sector customers usually buy 
managed solutions on multi-year contracts – 
helping them protect, run and grow their 
organisations and deliver their own digital 
transformations. 
Communications providers (CPs) buy 
wholesale mobile network capabilities, 
voice services, broadband, ethernet, and 
other connectivity solutions on one month 
to five or more year contracts through our 
Business unit.
Through Openreach, we provide regulated 
wholesale access to our fixed access 
network infrastructure on multi-year 
contracts to over 700 CPs, including our 
own Consumer and Business units.
Our three customer-facing units (CFUs) focus on different segments. Each aims 
to provide outstanding customer experiences through tailored solutions which 
generate revenue and build long-term trusted relationships. 
How we’re organised 
BT Group consists of customer-facing, technology, and corporate units. Our integrated model shares common platforms across our 
mobile network, technology, colleagues, and brands to help us to deliver the best results for our stakeholders. To comply with UK 
regulations and the Commitments, our Openreach customer-facing unit operates independently.
Consumer
Helps individuals and households 
communicate, study, work, learn, 
play and be entertained. 
Business
Serves more than 1m organisations in the 
UK and 1,000 multinational corporates 
and government customers globally. 
Openreach
Runs BT Group’s fixed access network 
infrastructure autonomously, in line with 
the Commitments. It connects millions of 
UK homes, businesses, government sites 
and mobile masts, while building the next 
generation full fibre network. 
Technology units (TUs)
Corporate units (CUs)
Our TUs build, maintain and run BT Group’s networks, platforms and 
digital assets – except fixed infrastructure assets which Openreach 
operates and commercialises. They’re also modernising our business 
through innovation, research and development (R&D), helping us be 
more agile, efficient and deliver better outcomes for customers. 
Our two TUs are:
Our CUs support our other units, driving efficiency across the group 
through centralised platforms, capabilities and shared services. They also 
facilitate group-level direction setting, governance and coordination – 
crucial for aligning business activities. Our four CUs are:
– Finance, Strategy and Business Services
– Human Resources
– Legal, Regulatory Affairs, Compliance and Company Secretarial
– Corporate Affairs. 
We’ve announced the creation of a new Strategy and Change unit to 
drive the development of BT Group’s corporate strategy and the next 
phase of our transformation.
Digital
Delivers our IT and digital platforms 
and upgrades the technology 
underpinning the products and 
services our customers need now 
and in the future. 
Networks
Designs, builds, runs and secures 
the mobile, core and global 
networks, enabling seamless 
connectivity for BT Group and 
all our customers. 
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Strategic report

New EE is here. We are redefining the 
way our customers interact with us for 
all their connectivity needs, in and 
out of the home. A new brand that 
plays a bigger, more relevant and more 
personal role in our customers’ lives.
We help people in over 13m homes to 
communicate, study, work, learn, play 
and be entertained through our EE brand.
13m
Well-established 
and trusted 
brands
Our brands help us develop and sustain 
millions of relationships with a wide range 
of customers in a wide range of markets.
BT is our flagship brand for business and 
public sector customers in the UK and 
globally. EE is our flagship consumer 
brand. It will be the go-to place for 
converged connectivity, including a 
broader range of products and services 
alongside connectivity.
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Strategic report
Our business model continued
Our sources 
of competitive 
advantage

We’ve got 
your back
As a Business unit under the BT brand, 
we connect organisations in around 180 
countries worldwide.
We serve over 1m UK and global 
organisations with connectivity solutions 
to help them run, transform and grow.
1m+
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Strategic report

With every 
fibre
Rolling out our next generation full fibre 
network. Openreach serves over 700 CPs.
700+ CPs
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Strategic report
Our business model:
Our sources of competitive advantage continued

Large 
customer base
We have over 26m consumer and business 
connections across our different brands. 
That includes nearly 50% of UK 
households and more than 1m UK and 
global businesses and public sector 
organisations. Openreach connects 
around 22.9m physical lines for over 
700 CPs – 43 of whom are signed to our 
Equinox 2 deal on our full fibre platform.
The sheer size, scope and breadth of our 
customer base sets us apart for building 
excellent propositions and winning 
partnerships. 
Trusted relationships across our EE, BT 
and Plusnet brands help us understand 
customers’ current and future needs and 
create new products to meet them. 
Leading 
networks 
at scale
We build, own and run the UK’s largest 
fixed and mobile networks – covering 
both rural and urban areas. 
Our fixed network connects homes and 
businesses at speeds of up to 1800Mbps. 
And we’re also building the UK’s new 
digital infrastructure to provide even 
better connectivity for all. With the 
fastest build rate in Europe, more than 
13.8m premises have now been passed 
with full fibre.
We’re continuing to grow our mobile 
network too. Our strong position on 
spectrum holdings and access to base 
station infrastructure has helped our 
4G network cover over 99% of the 
population and 5G reach more than 75%.
People and 
presence
Our colleagues help us transform and 
achieve our ambitions. We employ over 
94,000 people worldwide and almost 
74,000 in the UK. 
We serve business customers globally. 
Our on-the-ground resources worldwide 
include 14 global security operations 
centres and four global strategic service 
hubs. Our expert Service teams hold 
more than 4,100 professional industry 
accreditations as well as over 4,800 
technology accreditations. Our 
widespread local presence provides 
responsive support, underpinned by 
the expertise of our customer-facing 
and technical teams.
More than 26,000 Openreach engineers 
build and run the fixed networks which 
power connectivity in UK homes and 
businesses. Their skills and commitment 
help us improve our networks for better 
connectivity and solutions that exceed 
customers’ expectations. 
Our leading retail presence – more than 
430 stores – and over 15,000 support 
people help customers get the best 
from our solutions.
Strong partner 
and supplier 
relationships
We can’t achieve our goals alone. Our 
partners and suppliers help us transform 
faster and create new solutions that 
benefit our customers. 
It’s because of strong partnerships that 
Openreach can efficiently grow its full fibre 
UK network. This collaboration lets us 
adjust our operations as we need, flexibly 
scaling them up or down. 
Partners like Microsoft, Amazon Web 
Services and Nokia complement our 
products and services. Tightly cooperating 
with them makes us more agile, and more 
focused on customers. 
R&D and 
innovation 
Innovation has always been the key to 
our success – keeping us out in front in 
a constantly changing world. 
This year we recognised £726m on R&D. 
We also filed 95 patent applications, 
bringing our portfolio to 5,385. 
Openreach continues to push innovation 
boundaries to help cut build and 
maintenance costs while improving 
network quality. Group-wide research 
at Adastral Park led the development of 
XGSPON-capable head-ends which will 
let Openreach deliver up to 8Gbs 
symmetric services to CPs.
Vast data assets
We use our huge customer, product and 
network data sets for insights into what’s 
important and where to improve. 
To collect more insights we can act on, 
we’ve started to take more advantage of 
AI and machine learning. 
They’re helping us work smarter and 
faster to develop truly personalised 
solutions for customers and operate more 
efficiently across the group. And the better 
generative AI technologies get, the more 
valuable our vast data assets become.
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Strategic report

Understanding the big trends in our markets helps us seize 
opportunities as they happen, and act quickly to reduce 
risks to our business.
Customer and market
Shifting customer 
expectations
Customers increasingly expect fairer 
treatment from the companies they 
engage with. They expect tailored, always 
connected digital experiences that work 
seamlessly across channels. 
They want solutions that combine simple, 
reliable, anytime, anywhere connectivity 
with transparent pricing, flexibility 
and good value. This is an opportunity 
for us to create richer and more 
equitable experiences. 
Intense competition
We’re facing a wider set of competitors 
in many of our markets, including 
established, non-traditional digital and big 
tech players. There’s more investment in 
fixed and mobile markets. New entrants 
are speeding up disruptive trends – like 
the blurring of boundaries between 
connectivity and digital services.
Economic uncertainty
Today there is widespread economic 
uncertainty because of inflation and high 
interest rates. This directly affects us 
through rising costs and indirectly through 
financial strain on our customers, lowering 
demand for premium connectivity.
Geopolitical and supply 
chain challenges 
Our industry is affected by interconnected 
geopolitical issues and supply chain issues. 
War, conflicts and volatile political 
relationships can all disrupt global supply 
chains and change rules – which can raise 
costs or cause delays and security risks. 
The UK Government’s decision to ban 
equipment from designated High Risk 
Vendors is an example of a geopolitical 
factor impacting our business.
Unprecedented demand
for connectivity
In today’s AI era, customers have a bigger 
demand for connectivity than ever before. 
With more and more devices and 
machines connected, both individuals 
and businesses want this connectivity to 
be reliable, secure and resilient. This is a 
great opportunity for us to deliver that. 
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Strategic report
Trends shaping our industry and business
A record 200 million devices now 
connect to our network every day.
200m

Technology
Data, data, data 
The data explosion is helping businesses 
like ours optimise their networks, develop 
personalised services, explore new 
revenue streams and improve 
customers’ experiences. 
But it also creates challenges around 
privacy, security, data governance and 
preventing breaches. That means we’re 
having to do a lot more to mitigate the 
associated risks.
Artificial 
intelligence  
As AI and Generative AI get technically 
smarter, our industry is finding new uses for 
them. For example, AI can help improve 
customer experience to boost revenue 
or cut costs. 
But using AI more creates challenges on 
data privacy, algorithm bias and disruption 
to organisations and teams – which must 
be managed sensitively.
Cyber security
When more people and devices rely on 
being connected, coupled with businesses 
and governments keeping more sensitive 
data, there’s a bigger risk of cyber attacks, 
with potentially severe consequences 
when something goes wrong. Criminals 
and bad state actors are continually 
looking for ways to gather information 
for financial or geopolitical advantage. 
So cyber security is vitally important for 
us and our customers. 
Technology 
modernisation
Full fibre broadband and 5G are spreading 
quickly across the world – providing 
reliable, high speed connectivity. The 
Centre for Economics and Business 
Research estimates that a full fibre UK will 
boost GDP by £72bn and cut our carbon 
footprint through reducing commuting. 
Our investment will give us a more reliable, 
cost-efficient network on which we can 
create better customer solutions.
Social
Growing environmental, 
social and governance 
(ESG) focus
Consumers, businesses, colleagues and 
other stakeholders want companies to 
be responsible, inclusive and sustainable, 
and act in ways that benefit society and 
the planet. 
Concerns about matters like climate 
change and inequality shape stakeholders’ 
behaviour more than ever. Ethical 
companies with a clear purpose – who 
offer solutions that help customers 
address these issues – will benefit.
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Strategic report

Our strategic framework
Long-term
value creation
Why we exist 
We connect for good
This drives everything we do. We help 
people, businesses and governments to 
harness technology to connect, improve 
lives and unlock potential without limits. 
We believe in the power of connections – 
in personal lives, at work and increasingly 
between machines and devices.
Who we want 
to become
The world’s most trusted 
connector of people, devices, 
and machines by 2030
We connect millions of customers across 
the globe to what they need – as a trusted 
partner helping them thrive in the digital 
world. 
Households rely on us to stay 
connected with loved ones. Businesses 
and governments partner with us to 
deliver for their stakeholders. 
As technology keeps evolving, we 
want to keep doing more to prove 
our dependability and build our 
customers’ trust. 
Helping guide us
Personal, simple, brilliant
Our values guide us to fulfil our purpose 
and achieve our ambition. They inform our 
culture – the collective spirit we all tune 
into. They’re more than just what we do. 
They reflect both who we are and who we 
aspire to be. They help us be a positive 
influence, win stakeholders’ trust and keep 
us accountable to society by setting high 
standards for our business. 
Our values guide all our decisions, at every 
level. They define how we work every day. 
They show us the right thing to do.
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Strategic report

Our strategic framework explains our ambitions 
and how we aim to create value for our stakeholders. 
Our ambitions are bold and stretching. This year 
we made excellent progress against the three 
strategic pillars that support them. 
Pillar 1: Build the 
strongest foundations
We’re investing in the best converged 
network. For us that means making sure 
our full fibre and 5G networks aren’t just 
the broadest, but can also deliver 
converged capabilities. This combination 
of convergence, brilliant experience and 
faster, more reliable connectivity lets our 
customers do more.
We’re becoming a simpler, more efficient 
and dynamic company – easier to work 
for and with, and more responsive to 
customers’ needs. We are simplifying our 
product portfolio, transforming customer 
journeys and modernising our digital and 
network technology with AI as a 
fundamental component. 
And we’re building a culture where people 
can be their best. That means creating a 
diverse, inclusive and forward-thinking 
workforce that has the skills we’ll need 
in the future. 
Pillar 2: Create 
standout customer 
experiences 
We’re focused on delivering outstanding 
service and experience to our customers. 
That means creating market-leading 
service, brilliant digital touchpoints and 
trustworthy, secure and tailored 
experiences.
Customers don’t buy products; they buy 
answers to problems. So, we’re creating 
smarter solutions based on the latest 
converged, intelligent connectivity 
services. We want our solutions to create 
value for our home and business customers 
and give them the outcomes they need. 
We’re building value through commercial 
excellence – with superior sales 
effectiveness and better marketing 
and pricing capabilities. 
Pillar 3: Lead the 
way to a bright 
sustainable future 
We’re setting up our corporate portfolio 
for growth. That means optimising our 
assets, investments and picking our 
partners carefully.
The best new technologies will help us to 
grow sustainably. Our assets, capabilities 
and expertise should drive profitable 
growth and create brilliant outcomes 
for our customers and country.
We’re creating a more responsible, 
inclusive and sustainable business. 
That means investing in digital skills, 
championing responsible technology and 
tackling climate challenges and inequality.
We’re building trusted relationships with 
our stakeholders. Our diverse business can 
only succeed through our partnerships 
with customers, colleagues, governments, 
regulators, suppliers and communities. 
They are all critical to our success and 
we take them seriously.
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Strategic report

Pillar 1: Build the 
strongest foundations
The best 
converged 
network
Building the strongest foundations starts 
with the network. As the number of 
connected devices keeps growing, our 
customers expect the most reliable, 
secure and resilient connectivity. 
To meet their needs, we’re building the 
UK’s digital infrastructure at pace – 
through our new 5G network and 
c. £15bn full fibre investment.
Market leader in full fibre:
– Our full fibre network now passes more 
than 13.8m homes and businesses 
including 3.9m rural premisesa. This 
year we passed an average of 68,000 
premises per week, 15% more than 
last year.
– We’ve achieved FTTP build costs per 
home at the lower end of the £250 – 
£350 range.
– We’re connecting around 42,000 
customers a week. We now serve 4.7m 
full fibre customers – a 34% take-up 
rate compared to 30% last year.
– To meet demand from end customers, 
over 90% of Openreach’s new orders 
from CPs are for FTTP. 
– Through our co-provisioning 
partnership – where Openreach 
helps CPs to develop an ‘own brand’ 
experience for their customers, enabling 
them to connect around 3,000 of their 
own FTTP customers per week.
Market leader in mobile and 5G: 
– At the end of FY24, our 5G network 
covered more than 75% of the UK 
population.
– We now expect to cover 90% by 2027, 
a year ahead of previous projections. 
– We connected more customers to our 
5G network. There were a total of 11.7m 
5G devices on the EE network at the end 
of the year – up from 8.6m last year.
– Our mobile network now has over 88% 
UK geographic coverage and reaches 
more than 99% of the population. We 
added 2,920sq. km this year. 
– As we continue expanding coverage, 
33 London Underground stations now 
have mobile connectivity.
– We’re still the UK’s #1 network 
according to independent surveys 
from RootMetrics and Umlaut. 
– In the 2023 Connected Nations report, 
Ofcom noted that our 5G network has 
the most coverage at their Very High 
Confidence rating.
13.8m
Our full fibre network now passes a total 
of 13.8m homes and businesses including 
3.9m rural premises.a
42,000
We’re also connecting around 
42,000 customers every week.
75%
Our 5G network covered more 
than 75% of the UK population.
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Strategic report
Progress against our strategic framework
We continued to build the 
UK’s digital infrastructure 
at pace through our new 5G 
network and our c. £15bn 
investment in full fibre.
a  Rural premises are defined according to Ofcom’s Area 3 classification. 

How we 
connect you 
on the move
Our 5G network now covers more major road and 
rail routes than ever before, including around 
the UK’s busiest and largest train stations. 
In London, upgrades throughout TfL’s 
underground network have helped enhance 
the rail experience as 33 London Underground 
stations have mobile connectivity. This year 
saw high-speed coverage go live at the first 
West End stations, recently followed by the 
first four Elizabeth line stations.
We’re continuing to extend mobile 
coverage on platforms, escalators, 
in ticket halls and tunnels so you 
can continue to stream, call and 
text as you travel on the 
London Underground.
424tb of data on Central and Northern lines 
in the 12 months since the first stations went live.
424tb
This equates to spending over 72,000 hours streaming 
4K video, 106m hours of music streaming, or 28m hours 
browsing the internet.
72,000hrs
We’re delighted to bring the UK’s best 
network to the first Elizabeth line 
stations, marking another significant 
milestone in the rollout of 4G and 5G 
across the London Underground.
Greg McCall
Chief Networks Officer, BT Group
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We merged our old Enterprise and Global 
CFUs to create the new ‘Business’ CFU. 
This cut duplication and contributed 
to £142m of savings in FY24.
A simpler, more 
efficient and 
dynamic BT Group
We’re making great progress against our 
transformation ambitions – delivering 
£842m of cost savings in FY24. We’ve now 
realised our gross annualised cost savings 
commitment of £3bn against our May 
2020 guidance. That puts us 12 months 
ahead of schedule. 
We’ve simplified our product portfolio 
and transformed customer journeys 
and processes:
– We merged our old Enterprise and 
Global CFUs to create the new Business 
CFU to better connect with customers 
and deliver brilliant, converged 
experiences. This has also cut 
duplication and supported £142m 
of savings we’ve realised in FY24. 
– But we haven’t stopped there. We’re 
continuing to make BT Group simpler 
and more efficient:
– Our SAP system replaced 17 legacy 
finance systems, cutting licence and 
operating costs by £71m a year and 
improving group-wide access to 
financial data.
– We’re improving our ability to serve 
customers across different channels:
– By streamlining our customer 
ordering systems, we’ve given our 
teams the information they need 
to deliver excellent service.
– We’re moving to more modern, modular 
IT architecture and migrating our 
customers to strategic networks:
– We partnered with Tata Consultancy 
Services (TCS) to simplify our legacy 
estate by migrating over 500 legacy 
applications this year.
– We’ve closed our 3G network – 
the second old network we’ve 
switched off since the start of our 
transformation.
– 91% of our critical data is on the 
Google Cloud Platform, giving us a 
strong foundation to embrace the 
power of AI to create value from our 
data assets, delivering £125m of value 
to date and a further £76m confirmed 
into the future through efficiencies 
and new revenue against our £524m 
target.
– Our rollout of AI Ops, which enables 
‘self-healing’ of technology when 
issues emerge, reached 23% across 
our estate, reducing human effort 
to fix outages and cutting downtime 
for customers.
– We’ve deployed ‘Service Now’ – a 
cloud-based workflow automation 
platform. It’s been adopted by more 
than 7,900 Business customers, 
improving their experience through 
automated processes.
£3bn
We’ve realised our gross annualised cost 
saving commitment of £3bn against our 
May 2020 guidance. 
27%
We’ve simplified our Business product 
portfolio by 27%.
13%
In FY24, our decommissioning programme 
reduced our IT technology estate by 
approximately 13% versus last year.
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Strategic report
Progress against our strategic framework 
Pillar 1: Build the strongest foundations continued

Turned off, 
switched on
Retiring legacy networks and embracing 
modern infrastructure unlocks possibilities, 
enhances customer experiences, and fuels 
innovation. As we continue our work to upgrade 
the UK’s connectivity infrastructure, our efforts 
help drive economic competitiveness through 
seamless connectivity and emerging 
technologies. Additionally, it reduces our 
carbon footprint, contributing to a bright 
sustainable future.
Since announcing our transformation in FY20, we have 
reduced the number of legacy connections by nearly 
60% (see page 49).
We closed our 3G network, resulting 
in estimated annualised cost saving 
in the region of £24m at the end state. 
£24m
60%
We switched off 15,613 fixed
legacy network elements.
Reducing emissions by 56,162 tonnes 
of CO2e at the end state. 
56,162tCO2e
15,613
Saving roughly 27 GWh of power consumption. 
Enough to boil your 1.7 litre kettle more than 
140m times.
27GWh
140+ million
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Strategic report

We can’t deliver our ambitions without 
dedicated colleagues. So, our people 
strategy aims to make BT Group a brilliant 
place to work. We’ve made progress and 
achieved a lot, but there is more to do. 
A culture where 
people can be 
their best
Skills and organisational 
development
– Today’s work landscape is always 
changing. Giving colleagues new skills 
doesn’t only benefit them, it’s essential 
for our success:
– We’ve introduced My Campus – a 
new AI-driven learning platform for 
personalised learning experiences. 
This year, we achieved a very promising 
early adoption rate of 42% among 
colleagues that have participated in 
learning via the platform.
– We’re also empowering our software 
engineers through new technologies 
like Amazon Q Developer, a generative 
AI-powered coding assistant.
Inclusion, equity and diversity:
– A workforce as diverse as our customer 
base, and inclusion by design are critical 
to our strategy and will help us drive 
productivity, innovation and growth 
for the UK and beyond.
– We’ve made progress against our 
diversity goals but it’s not yet enough; 
we are committed to improvement 
because we know inclusion and 
diversity enable company 
performance (see page 31).
– Important foundations are in place; we 
have a strong community of People 
Networks and partners like 10,000 
Black Interns and CyberFirst.
– And our hard work didn’t go 
unnoticed as the BT Group Ethnic 
Diversity Network was awarded 
“Best Network Group” at the 
Ethnicity Awards.
– Our data and surveys tell us that 
colleagues from under-represented 
groups are experiencing barriers 
and non-inclusive behaviours.
– Our Inclusion Plan aims to remove the 
barriers and improve the capability 
of our people managers to lead their 
teams inclusively (see page 31).
Occupational health and wellbeing
– Colleague engagement is still higher 
than external UK benchmarks. Following 
our March 2024 Your Say colleague 
engagement survey, it improved by 
2 points to 75% compared to last year. 
This has been driven mainly by Openreach.
– All UK colleagues had a minimum of 
a 5.5% pay rise. Our junior frontline 
colleagues got bigger pay rises of 
up to 10%.
– Our Better Workplace programme is 
transforming BT Group workspaces. 
Since the programme started, we’ve 
closed 746 older buildings and moved 
over 22,000 colleagues to new facilities. 
42%
This year, we achieved a very promising 
early adoption rate of 42% among 
colleagues that have participated in 
learning via the My Campus platform.
7,196
Engineers trained this year 
in new fibre skills.
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Strategic report
Progress against our strategic framework: 
Pillar 1: Build the strongest foundations continued

AI learning 
with the 
personal 
touch
We’re passionate about learning at BT Group, and we 
want to create a space where our colleagues can 
develop their tech skills and learn new ones too. 
That’s why we’ve launched My Campus, a new learning 
platform powered by AI, integrating content from 
Pluralsight, LinkedIn Learning, and BT resources. 
Tailored to each colleague’s role and interests, the 
platform provides easy access to videos, courses, 
articles, and podcasts for skill improvement. It also 
monitors mandatory training, development plans, 
and skills to enhance talent management.
37,335 different resources 
available to colleagues.
37,335
20,430 facilitated courses 
delivered to colleagues.
20,430
993 BT Group plans and pathways created 
to curate content for colleagues 
on relevant skills and topics. 
993
Using this new knowledge helps prompt 
interesting discussions, the courses 
I’ve completed have encouraged open 
discussions with my team.
Simon Yu
Senior Digital Governance 
Manager for Digital at BT Group 
BT Group plc Annual Report 2024
25
Strategic report

Pillar 2: Create standout 
customer experiences 
To go beyond our customers’ 
expectations, we deliver 
outstanding service and 
experiences – while giving 
them smarter solutions and 
keeping them secure.
Outstanding 
service and 
experience
– By focusing on improving our customers’ 
experience, we’ve made good progress 
on all of our customer satisfaction metrics:
– BT Group NPS of 24.0, up one point 
year-on-year, further improving 
customer experience (see page 49).
– Openreach has a 4.6 ‘Excellent’ 
Trustpilot score, based on reviews 
from UK end customers. 
– EE maintained the second lowest 
number of Ofcom complaints per 
100,000 customers for mobile 2 
and broadband 9.
– BT broadband had 11 Ofcom 
complaints per 100,000 
customers – continuing to beat 
the industry average.
– We aim to keep our customers safe 
through strong security measures 
that instil trust in our services:
– Every month, we spot over 2bn 
malicious network events, which we 
use to protect our infrastructure 
and customers.
– BT Group was awarded the 
prestigious Prime Minister’s Award 
for Cyber – for helping customers 
avoid text message scams. 
Smarter, 
differentiated 
solutions and 
outcomes 
We keep on improving our portfolio to offer 
customers more flexibility. These evolutions 
also give them the latest converged, 
intelligent connectivity solutions to get more 
from their digital lives.
– Many customers are hanging onto their 
phones for longer. So we introduced 
‘Flex plans’. The new service separates 
handsets and connection payments so 
customers can choose to pay off their 
phones over longer periods.
– We launched ‘New EE’ – a modern 
digital platform giving customers a 
broader range of products and more 
options on payments, technology and 
subscription management.
– ‘New EE’ is powered by an EE ID identity 
management system. Anyone in the UK 
can create an EE ID and buy products 
and services without having to be an EE 
customer. The EE ID user base exceeds 
9.5m customers.
– We’ve introduced EE TV – a complete 
service of flexible premium content. This 
UK first features an Apple TV 4K app 
and a free multi-room option.
– Our new Smart Hub gives full fibre speed 
of 1.6Gbps and includes mobile back-up 
and next-generation wi-fi controls to 
make sure they’re always connected.
– For business customers, we announced 
Global Fabric. This brand-new cloud-
ready global network is flexible, 
scalable and offers pay-as-you-use 
connectivity – to help them get the 
best from a multi-cloud environment.
– With cyber security company Fortinet 
we’re providing a new networking and 
security service to help businesses manage 
multi-site connections. Fully managed by 
our experts, it minimises cyber risks and 
supports cloud migration.
– In collaboration with Johnson Controls, 
we’re providing smart building 
technology to optimise energy usage 
in workplaces, cut cost and accelerate 
the path to net zero emissions.
– Over EE’s network, we’re offering the 
UK’s first Drone SIM. It comes with 
unlimited data and connectivity in the 
sky – enabling safer drone flights, better 
control and live HD video streaming.
BT Group plc Annual Report 2024
26
Strategic report
Progress against our strategic framework continued
BT Group handles 999 calls in the 
UK, providing support to the 
emergency services round the 
clock, every day of the year.
In June 2023, for only the second 
instance in history the teams handled 
over 1 million calls in a week.
Read more at bt.com/
annualreview.
Our 999 call centres managed the 
highest annual call volumes ever 
recorded, totalling 41 million calls.
41m

Bigging 
up our 
network
We’re dealing with more data, faster than ever 
before, as an increasing number of devices and 
machines are connected. Both individuals and 
businesses rely on this connectivity to be 
reliable, secure, and resilient and our fixed 
network enables this.
Online gaming is still having a big impact. For 
example, the release of Call of Duty: Modern 
Warfare 3 in November 2023 saw an 89.9% surge 
in gaming traffic compared to Call of Duty 
Modern Warfare 2’s release.
Broadband traffic on Openreach’s network throughout 
the UK increased by around 9% in 2023.
9%
The busiest day of 2023 for the BT/EE network was Tuesday 
26 December (Boxing Day), when traffic peaked at ~25TBps 
and more than 147Pb of data was consumed.
147Pb
More than 55,000 international roamers used 
more than 3Tb of data during Eurovision week, the 
equivalent of 750,000 hours of music streaming.
The release of Call of Duty: Modern Warfare 3 
in November 2023 saw an 89.9% surge in gaming traffic 
compared to Call of Duty Modern Warfare 2’s release.
3Tb
89.9%
750,000 hours
BT Group plc Annual Report 2024
27
Strategic report

Pillar 3: Lead the 
way to a bright, 
sustainable future 
A portfolio 
positioned for 
growth
This year we continued simplifying our 
portfolio and removing non-core assets 
to streamline the group and position us 
for growth:
– For example, we divested Pelipod – a 
secure collection point service for UK 
field service engineers.
– Continuing our asset-light 
strategy outside of the UK, we 
sold BT Enia, a regional Italian 
telecommunications business. 
Incubating new tech-driven 
growth engines 
We’re investing in the future by focusing 
innovation efforts on tech-driven growth 
areas that match our strengths. This 
will deliver better, smarter outcomes 
for customers.
– Our Adastral Park R&D centre continues 
innovating around network technology. 
Our experts are pioneering the next 
generation of communications 
capabilities to help transform how 
people live and work.
– The Adastral Park team also developed 
Multicast Assisted Unicast Delivery. It 
delivers more reliable, better-quality 
online video streaming – while cutting 
energy and bandwidth use during peak 
events by over 50%.
– In East Lothian we’re piloting the UK’s 
first Electric Vehicle (EV) chargers 
powered by our street cabinets. This 
could revolutionise EV charging across 
the country.
– Our remote healthcare solution uses a 
patient app to give them early access to 
health monitoring, resources to manage 
their conditions and instant remote 
access to clinicians. We’re currently 
piloting it in 26 GP practices.
A responsible, inclusive, 
sustainable business
Our Manifesto describes our long-term 
commitments to contributing positively 
to country and community.
– We’re creating a more inclusive society 
to help drive UK productivity, innovation 
and growth:
– This year we helped 3.7m people and 
more than 200,000 business owners 
and employees, improve their digital 
skills – a total of 23m people helped 
since FY15 (see page 35).
– We partnered with AbilityNet to 
help around 3,000 digitally excluded 
over-65s build confidence and 
skills through various campaigns – 
including a series of free ‘BTea Room’ 
digital workshops.
– To support small business customers 
we organised 120 Netwalks. This 
initiative provides self-care, mental 
health support, early intervention 
and networking opportunities to 
small businesses.
– Over 80% of UK children play games 
online at least a few times a week. So 
we launched an online resource called 
‘GameSmart’ to give parents safety 
tips for managing children’s gaming -
without being overly restrictive.
– We created EE Hope United to combat 
online hate. This year we lobbied the 
House of Lords to amend the Online 
Safety Bill to better protect women 
and girls.
– We’re pushing further to become a 
net zero carbon emissions business 
by March 2031:
– We’ve cut our carbon emissions 
intensity by 61% since FY17. And our 
transition from copper to full fibre 
networks will speed up our carbon 
emissions cuts – as fibre is 80% more 
energy efficient than copper.
– We’re also switching our commercial 
fleet to EVs. We added more than 
1,700 EVs to the fleet this year, 
bringing the total to over 4,100. 
– This year we cut our global energy 
consumption by 140GWh – a 4% drop.
– Our customers avoided more than 
1.5m tonnes of carbon emissions this 
year through our products and 
services, including full fibre broadband.
– Openreach brought full fibre broadband 
to Fair Isle, one of the UK’s most 
geographically remote islands. To avoid 
protected landscapes and bird nesting 
season, they had to reroute the build by 
100km. That’s the longest continuous 
fibre transmission distance ever 
deployed in the UK.
BT Group plc Annual Report 2024
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Strategic report
Progress against our strategic framework continued
3.7m
This year we helped 3.7m people and over 
200,000 small business owners and their 
employees improve their digital skills.

Your future 
in the tech 
industry
We worked with local science, technology, 
engineering, and mathematics (STEM) enrichment 
experts Graphic Science for our National Careers 
Week 2024. We hosted a diverse group of secondary 
school students to help them think about what 
their future could look like in digital, data, 
innovation, and technology. Through interactive 
workplace activities and mentoring from 
colleagues, pupils gained hands-on experience 
with problem-solving challenges balancing 
people, planet and profit, developing inclusive 
technology solutions for mental wellbeing, 
interactive demos on fibre splicing, cyber security, 
data monitoring and VR simulations.
We hosted a diverse group of over 
190 secondary school students at 
our National Careers Week 2024.
96% of pupils said that the day had helped 
them discover more about the tech industry 
and the role that they could play.
190+
96%
94% of pupils said that the day had helped 
them understand the links between their 
studies and the skills employers look for.
The day aimed to inspire students 
about future careers in digital, data, 
innovation, and technology fields while 
helping them identify transferable skills 
using our Get Work Ready toolkit.
94%
BT Group plc Annual Report 2024
29
Strategic report

We’re creating a culture where everyone sees the value 
of curiosity and lifelong learning – and has the skills 
and capabilities they need to evolve with our business. 
This year we hired around 12,000 people. 
Roughly 8,000 were in the UK, including 
around 1,000 apprentices and 200 graduates. 
Roughly 17,000 colleagues left the business – 
around 14,000 through natural attrition 
and 2,000 through paid leaver programmes.
Building tomorrow’s skills 
and capabilities
As our business evolves, so too will the 
skills and capabilities we need – resulting in 
a smaller, but more skilled, diverse and 
tech-savvy future team. 
We’re now clear on what’s needed to 
deliver on the workforce reduction targets 
we announced in May 2023, and to make 
the right changes to our mix of skills. 
Safer and more 
inclusive leadership 
Building an inclusive environment starts with 
our leaders. This year we launched a 10-
month learning programme for our senior 
leaders to build more inclusive leadership 
practices, with 87% enrolled so far. 
The programme focuses on creating an 
inclusive climate, building psychological 
safety, developing a sense of belonging 
and learning how to have conversations 
about inclusion. The training is also 
helping build the right habits and better 
accountability – with tools for leaders to apply 
what they’ve learned with their teams.
BT Business school 
We created and ran a CEO-sponsored 
mini-MBA style programme for senior 
leaders in our Business unit. It helped our 
senior management team build a stronger 
community, fill in skills and knowledge 
gaps around effective commercial 
leadership and address cultural challenges.
Talent attraction, inclusion, 
equity and diversity 
We partnered with Women Returners on 
the ‘Restart’ project to attract and retain 
career returners. The widespread social 
media campaign generated significant 
interest and resulted in over 300 
applications for 18 places. 
Launched in September 2023, our 
‘Business as Unusual’ campaign aimed to 
disrupt the market around hiring talent. It 
generated significant social media interest 
which helped us find 202 talented people, 
identify 24 exceptionally talented people 
for future hire, and hire eight.
During the campaign we also got an overall 
increase in job applications. September 
2023 saw the year’s highest number of 
applicants (a 26% uplift vs August). We 
had more external applications from 
women, and overall women external hires 
in the UK also rose to 45% in September 
and October last year. 
EE’s attraction programme kicked off in 
2023. Aiming to reach a more diverse 
audience, it included a new EE brand 
campaign, industry partnerships and 
new candidate profiles.
We’re already seeing a positive impact in 
terms of colleague retention. We also 
hired more apprentices than last year with 
recent cohorts 8% more likely to stay at 
least three months compared to our 
normal hiring process. 
My Campus – a personal learning 
platform
Upskilling and reskilling colleagues across 
the group will boost our performance and 
help transformation happen. Making 
learning easier and more habitual gives us 
the best chance of giving our colleagues 
the right skills for the future. 
BT Group plc Annual Report 2024
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Strategic report
Our people
We never stop 
investing in our people
Ethnic diversity is based on voluntary 
disclosure. In 2023, 77% of our UK 
colleagues disclosed their ethnicity.
77%

Inclusion, equity and diversity 
We’re encouraging more inclusive thinking 
through understanding barriers to inclusion 
and taking action to make sure all our people 
can be their best at work. Our Manifesto has 
bold targets for diversity. While we’re making 
progress in ethnic minority representation, 
there’s much more to do in other areas. 
Our UK declaration rates are now 81%. 
More colleagues are feeling comfortable 
to declare their personal information, 
giving us better demographic data to help 
us focus on areas of concern. 
Our 2025 Manifesto targets for gender, 
ethnic minority and disability at various levels 
of the organisation are listed in the table 
opposite against the progress made in FY24.
Whilst we have made progress towards some 
of our goals, we have work to do to make 
BT Group a more inclusive workplace for 
everyone as we strive to achieve our 
inclusion, equity and diversity ambitions. We 
are focused on improving inclusion in the way 
our jobs are designed and how our workplaces 
operate, underpinned by an unwavering 
focus on inclusive leadership capability – all of 
which are required for BT Group to have a 
workforce that reflects our customers and 
the communities we operate in.
We collect diversity data for protected 
characteristics (as per UK employment 
law) and special category data (as per 
GDPR, or local laws in other geographies). 
This is done voluntarily, directly into our 
HR system (SAP SuccessFactors). 
We store, use and report on data in line 
with local laws and our advertised 
employee privacy notices. Due to local 
restrictions on capture and reporting of 
ethnicity and disability, the information 
opposite only relates to the UK.
More diversity in digital skills will drive 
productivity, innovation and growth in our 
business and for the whole of the UK (see 
our Manifesto on pages 34 to 39).
Our focus on targeting under-represented 
ethnic minority communities in the UK 
meant that in FY24 29% of new UK-based 
roles in Digital were filled by people from 
ethnic minority backgrounds.
We have a broad ecosystem of partners 
(including Career Returners, Code First Girls 
and 10,000 Black Interns) to help us reach 
into the community, create awareness, and 
invest in, develop and open up opportunities 
for future digital talent. 
We have engaged with colleagues through 
the Colleague Board (see the Corporate 
governance report on pages 90 to 91) and we 
have worked with our highly active and award-
winning People Networks. These colleague-
led groups raise awareness and advocate for 
change inside and outside BT Group.
31 March 2024
31 March 2023
2025 Targets
BT Group (excluding Openreach)
Men
 65% 
 65% 
Women
 35% 
 35% 
 46% 
Ethnic minoritya
 16% 
 13% 
 16% 
Disableda
 9% 
 8% 
 14% 
Openreach
Men
 90% 
 90% 
Women
 10% 
 10% 
 12% 
Ethnic minoritya
 9% 
 9% 
 10% 
Disableda
 6% 
 6% 
 6% 
BT Group
Men
 74% 
 74% 
Women
 26% 
 26% 
 32% 
Ethnic minoritya
 13% 
 12% 
 13% 
Disableda
 8% 
 7% 
 10% 
Board
Men
 50% 
 67% 
Women
 50% 
 33% 
 33% 
Ethnic minoritya
2 members 2 members 2 members
Disableda
1 member
1 member
Executive Committee b
Men
 60% 
 70% 
Women
 40% 
 30% 
 33% 
Ethnic minoritya
2 members 2 members 2 members
Disableda
1 member 0 members
Senior leadership team b & c
Men
 74% 
 78% 
Women
 26% 
 23% 
 41% 
Ethnic minoritya
 11% 
 14% 
 15% 
Black/black heritagea
 —% 
 1% 
 5% 
Disabilitya
 14% 
 8% 
 10% 
Senior management team c
Men
 65% 
 65% 
Women
 35% 
 35% 
 41% 
Ethnic minoritya
 9% 
 9% 
 15% 
Black/black heritagea
 3% 
 2% 
 5% 
Disabilitya
 14% 
 9% 
 10% 
a    UK population only. 
b   For the purpose of the UK Corporate Governance Code 2018, our leadership comprises the Executive 
Committee (excluding Executive Directors on the Board but including the CEO, Openreach) and all Executive 
Committee direct reports (excluding admin roles). This totals 28 women (33%) and 56 men (67%).
c  For the purposes of the Companies Act 2006, our senior management comprises those employees responsible 
for planning, directing and controlling the activities of the group, or a strategically important part of it 
(members of our senior leadership and senior management teams, and directors of the group’s subsidiaries 
but excluding directors on the Board). This totals 196 women (35%) and 355 men (65%). Numbers presented 
include 70 subsidiary directors (50 men and 20 women) who are not otherwise members of our leadership or 
senior management teams.
BT Group plc Annual Report 2024
31
Strategic report

Pay gap reporting 
Gender
This is the seventh year we’ve reported our 
gender pay gap. Our UK gender pay gap is 
broadly the same as last year – we continue 
to track lower than the national average 
gender pay gaps:
– Our median gender pay gap narrowed 
slightly to 5.6% (-0.5%).
– Our mean gender pay gap widened 
slightly to 4.0% (+0.3%). 
Median pay gap %
17.8
17.4
14.9
15.1
14.9
14.3
5.0
4.8
5.0
6.7
6.1
5.6
Office for National Statistics (ONS) median
BT Group median
2018
2019
2020
2021
2022
2023
– Our gender gap is still lower than the UK 
average of 14.3% (median) and 13.2% 
(mean) and our female representation in 
the upper pay quarter has improved.
– Despite an increase in female hires 
between 2022 and 2023, female 
representation remains unbalanced at 
23%, with a higher attrition rate among 
women. This is reflected in the pay 
quartile distribution, with a higher 
proportion of women in lower pay 
quartiles and little improvement in 
the upper pay quartiles. 
You can read our full statement – 
including all the entities in scope at 
bt.com/genderpaygap
Ethnicity
This is the fourth year we’ve voluntarily 
reported our ethnicity pay gap (which is 
not a legal requirement).
Ethnicity pay gap %
2023
2022
Mean
Median
Mean
Median
Ethnic 
minority 
(0.8)% (1.8)%
(0.3)% (1.2)%
Asian
(3.4)% (2.9)%
(3.6)% (2.4)%
Black
5.1% (0.9)%
6.6% (0.3)%
Multi-
ethnic 
0.1%
4.0%
3.3%
5.2%
Other 
ethnic 
(3.7)% (8.7)%
(6.2)% (9.3)%
Ethnicity bonus gap %
2023
2022
Mean
Median
Mean
Median
Ethnic 
minority 
7.4%
4.2%
8.4%
14.2%
Asian
4.2%
2.5%
(2.1)%
1.3%
Black
41.4%
11.9%
37.7%
53.9%
Multi-
ethnic 
(27.7)%
2.3%
0.7% (14.9)%
Other 
ethnic 
(6.0)% (3.5)%
(1.5)%
40.1%
Ethnic diversity is based on voluntary 
disclosure. In 2023, 77% of UK 
colleagues disclosed their ethnicity. 
Aggregated ethnicity pay gap analyses 
can often mask wider issues that people 
of different ethnicities face at work and 
in society. So each year we look at our 
data very carefully to get a more 
nuanced picture. 
In 2023 ethnicity pay gaps stayed low and 
favourable – with an overall median pay 
gap of -1.8% and a mean of -0.8%. But 
they do vary by different ethnic group. 
The figures above detail the movement in 
pay and bonus gaps to the majority by 
ethnic group from FY23 to FY24.
– The Black/African/Caribbean/Black 
British mean pay gap is still largest of all 
the ethnic groups – although it did 
narrow slightly this year and the Asian 
pay gap is the narrowest. This is 
reflected in the fact there are more 
Asian colleagues in higher-paid roles like 
management, and more Black colleagues 
in frontline roles like engineering. 
Disability 
This is the first year we’ve voluntarily 
reported our disability pay gap (which 
is not a legal requirement). It reflects 
our drive for equal opportunity across 
all characteristics. 
Disability is based on voluntary disclosure. 
At the time of the snapshot date in April 
2023, 68% of UK colleagues disclosed their 
disability status. Improving this rate is the 
biggest lever to help us understand and 
improve our disability pay gap. 
2023
Mean
Median
Pay
0.7%
0.0%
Bonus
(6.5)%
(0.2)%
– At group level, mean and median pay 
gaps are low – with a small mean gap 
of 0.7% and a zero median gap.
– The overall bonus gap is negative. This 
shows our disabled employees getting 
slightly higher bonuses – influenced by 
the higher declaration rate in our senior 
leader population. 
You can find more examples of BT 
Group’s initiatives to improve 
representation (as well as pay quartile 
analysis, bonus information and entity 
breakdowns) in our ESG Addendum at 
bt.com/esgaddendum
Inclusive health
We know how inclusive health affects 
our workforce and colleagues – so we 
listen to our People Networks closely. 
We partnered with our: 
– Ethnic Diversity Network around mental 
health care disparities and to enhance 
our mental health services.
– Able2 Network on matters like 
occupational health, BT passports, living 
with disabilities and mental health.
– Jewish and Muslim Networks on coping 
with the impact of the situation in Israel 
and Gaza.
– Gender Equality, Carers, Pride, Peer 
to Peer Support and Armed Forces 
Networks on topics like cancer and 
suicide prevention.
– Carers Network to apply for Carer 
Confident Level 3 – Ambassador 
Status (The Employers for Carers 
Benchmarking Scheme). 
Adjustments for everyone who 
needs them
We’re committed to making sure any 
colleague who needs a workplace 
adjustment gets one. These are positive 
adaptations which help colleagues with a 
disability, health condition or change in 
personal circumstances that might stop 
them working at their full potential. 
BT Group plc Annual Report 2024
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Strategic report
Our people continued

This year we initiated 1,146 referral cases, 
the most common being adjustments for 
back or neck issues (338 cases).
Where specialist advice is needed, a 
workplace adjustments referral service is 
provided by our third party team, Health 
Management Limited. Using empowER 
to raise cases for each referral provides 
Managers with a guided journey to follow 
and each case is supported by HR Services.
Occupational health and wellbeing 
Absences across BT Group from sickness fell 
to an average of 3.67% calendar days lost per 
colleague (down from 3.87% last year). 
And when our colleagues need extra help 
getting back to work, our fully funded 
rehabilitation programme for 
musculoskeletal and mental health 
services returns 97% of them to full duties. 
Better mental and physical health 
Today’s world is psychologically challenging. 
In a Volatile Uncertain Complex Ambiguous 
world we continue to be at the forefront of 
innovative approaches to improve the 
wellbeing of our colleagues and help them 
maintain optimum mental health. We 
continue to promote our Employee 
Assistance Programme and CBT Mental 
Health Service as well as online guided self 
help modules. 
In FY24 we started the process of getting BSI 
ISO 45003 certification for psychological 
health and safety in the workplace. We 
achieved the stage 1 audit objectives and 
the BSI auditor has recommended we 
now move to stage 2 audits. 
As well as strengthening our fitness for work 
medicals for our most critical roles, we 
continue to do statutory health surveillance 
for all our poling and civil engineers.
Putting musculoskeletal health 
and safety first 
We’ve been getting more sophisticated 
insights from our health and safety data. 
We have moved from reactive use of data 
to earlier and more active intervention. 
The insights are helping us understand 
where to best focus our attention to make 
sure everyone at BT Group can work safely, 
and return home safe at the end of the day. 
Earlier intervention helps people stay in 
(or return to) work after injury or illness – 
helping work become more of a part of 
the rehabilitation process.
In response to rising musculoskeletal 
related absences in our Openreach field 
engineering colleagues, using a data led, 
evidence-based approach we launched 
two new clinical intervention pilots this 
year to optimise colleagues’ health – the 
Musculoskeletal Specialist Assessment 
and Medical Assistance Programme. 
They include structured pathways to clinical 
support services, earlier categorisation based 
on the risk of long term sickness absence, and 
help for people to return to contractual work. 
In FY24 we reduced musculoskeletal-
related absences by around 24,000 days 
equating to £500,000 in savings.
BT Group plc Annual Report 2024
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Strategic report
£139,000
Introduction of My Discounts – new discount 
scheme for colleagues. Almost £139,000 worth of 
savings for colleagues in the first four months.
Taking care of our team
Running the 999 emergency service
We are the first, calming voice heard every time someone 
in the UK calls the 999 emergency services. In FY24 we 
took 41 million calls – answering on average in less 
than a second. 
In 2023, we reviewed our attendance rules for the 
999 service. Our aim was to make shift patterns fairer 
and more consistent. The changes we’re making include 
‘bunched’ days off and a guaranteed weekend off every 
month. These will make our colleagues’ shift schedules 
more predictable and structured, while allowing more 
flexibility and making it easier for them to plan around 
their working weeks.
1,000+
To help out teams across the whole group, this year we 
launched My EV – our electric vehicle salary sacrifice 
scheme, which generated more than 1,000 applications 
in the first week. 

Launched in 2021, BT Group’s Manifesto is our plan to accelerate 
growth through responsible, inclusive and sustainable technology. 
Our Manifesto is rooted in our purpose, to connect for good. And it will 
help us achieve our ambition – of becoming the world’s most trusted 
connector of people, devices and machines. It combines a clear 
commercial agenda with measurable promises to make a bigger 
positive impact on people and planet. 
Responsible 
New tech must earn people’s trust 
and transform lives for the better. 
So we’ll:
– invest in new growth tech to help us live 
and work better 
– apply responsible tech principles across 
our value chain 
– partner to build a responsible tech 
ecosystem that builds trust and drives 
growth.
Inclusive
The future of tech must be diverse 
and inclusive for everyone to 
benefit.
So we’ll:
– build a diverse workforce through our 
inclusion, equity and diversity targets
– pass 6.2m rural premises with full fibre 
by the end of 2026 (as part of our 25m 
build target)
– expand our 4G/5G mobile networks across 
the UK, including in rural locations
– help 25m people with digital skills by 
the end of March 2026. 
Sustainable
Tech must accelerate our 
journey to net zero emissions 
and a circular economy.
So we’ll:
– be a net zero business by the end of 
FY31, and net zero on all Scope 3 
emissions by FY41
– help customers avoid 60m tonnes of 
CO2e by 2030
– build towards a circular BT Group by 
2030, and a circular tech and telco 
ecosystem by 2040, while protecting 
nature and biodiversity.
We contribute to the UN 
Sustainable Development Goals
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Our Manifesto

Responsible
New tech must earn people’s trust 
and transform lives for the better.
We apply our responsible tech principles 
across our value chain. They help us consider 
how to minimise harm and benefit people 
every time we develop, buy, use or sell tech. 
They’re grounded in the UN Guiding Principles 
on Business and Human Rights, and are part 
of our risk management framework. 
Our responsible tech principles are:
For Good: We design and deliver tech to 
empower people and improve their lives.
Accountable: We’re accountable for our 
actions and take care to avoid, and protect 
against, tech misuse.
Fair: We work hard to ensure everyone is 
treated fairly and with respect.
Open: We listen, collaborate and are 
transparent about our actions.
Our Responsible Tech and Human 
Rights Sub-Committee oversees how 
we implement the principles. This year it 
continued looking at emerging risks and 
strategic growth areas. We used external 
experts to help define our approach on 
topics like high-risk markets, AI and new 
products and innovation.
Developing new tech
We apply the principles right from the start 
when we design and develop new tech. 
This year we:
– completed a human rights impact 
assessment of wi-fi controls to help us 
identify, understand and assess the risks 
of the product
– conducted user research to understand
how our responsible tech principles 
could build trust and differentiate us
– published our approach to children’s 
digital rights.
Buying tech
Our procurement company, BT Sourced, 
has responsibility and sustainability criteria 
set into its processes. They give our buyers 
clarity on supplier risks and opportunities. 
This year we:
– reviewed human rights risks in our 
supply chain, to better understand 
these risks and identify any gaps in 
our policies and processes
– launched a ‘worker’s voice’ pilot in five 
supplier factories, to understand the 
experience of people working in our 
supply chain
– carried on doing due diligence on our 
direct tier 1 manufacturing supply chain 
(visit bt.com/modernslavery for more).
Using tech
We want to make sure our products and 
services are used for good. So we focus on 
protecting privacy and free expression and 
preventing online harms. 
This year we published an AI standard 
for colleagues, to ensure our use, 
development, purchase and sale of AI 
is consistent with the responsible tech 
principles, thereby helping to reduce 
risk at every stage of the AI life cycle. 
Selling tech
We sell to customers around the world. 
This year we:
– enhanced sales due diligence in Business 
by adding checks for negative media 
coverage. This helps us assess any 
potential human rights risks through 
the life of a customer’s contract
– conducted a human rights impact 
assessment in a high-risk country, 
which we’ll use to steer future 
business strategy.
The 2023 Global Child Forum Benchmark 
Report looked at companies’ policies, 
approach and commitment to children’s 
rights. It rated BT Group as one of Europe’s 
top performing companies and as a global 
leader in the telecoms sector.
Inclusive
The future of tech must be 
diverse and inclusive for 
everyone to benefit.
Embracing inclusion, equity and diversity 
is core to our people strategy and key to 
our growth. We want to be champions for 
digital inclusion too.
Many families and vulnerable groups have 
been badly hit by the cost of living increases 
of recent years. We want to support them. 
We’re market leader in social tariffs, 
currently helping around 1m low-income 
and vulnerable customers through 
affordable fibre broadband and calls. 
And we’ve frozen these tariffs this year to 
protect them from inflationary price rises.
Our Home Essentials social tariff gives 
discounted broadband to customers on 
Universal Credit. Our EE Basics tariff does 
similar for eligible mobile customers. And 
Openreach’s ‘Connect the Unconnected’ 
scheme waives connection fees for 
vulnerable customers, via their CP. 
Working with charity partner Home-Start 
UK, we’re also supporting the most socially 
excluded households through gift-in-kind 
contributions, fundraising and donations, 
which totalled more than £134,000 this 
year. And our digital skills help is giving 
more people the benefits of being online – 
particularly vulnerable groups in society, 
like children and over-65s.
We’re developing the right digital 
infrastructure so no one gets left behind. Our 
full fibre broadband already passes 13.8m 
homes and businesses, including 3.9m in rural 
areas. Our 4G mobile network reaches 99% 
of the UK population, while our 5G network 
now reaches 75%, as we continue the rollout 
of 5G across the country. 
You can read more on page 20.
Help with digital skills
This year we helped 3.7m more UK people 
and businesses improve their digital skills. 
Since FY15, the total is 23m people. And 
we’re on track to hit our target of 25m 
by the end of FY26.
Tackling online hate
Hope United is part of EE’s ongoing 
commitment to deliver positive 
societal change. It features a team of 
elite professional football players – 
representing all four home nations – 
coming together to tackle online hate. 
So far, it’s helped educate 10.9m people 
on being good digital citizens. 
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EE GameSmart helps demystify the 
world of gaming for parents, helping 
you to create positive shared 
experiences with your children. 
With game trailers, information and 
guides, parents feel ready to 
embrace the world of gaming. We’ve 
worked with Internet Matters 
creating content to help parents 
feel confident as their child enters 
the gaming world.
Read more at 
eegamesmart.co.uk

During the 2023 Women’s Football World 
Cup, the ‘Play on’ campaign reached 3.5m 
people, encouraging young people not to 
drop out of sport due to hate. One of the 
EE Hope United squad also visited 10 
Downing Street to support amendments 
to the Online Safety Bill, helping to protect 
women and girls.
Supporting small businesses
Our free digital skills programme helps 
businesses unlock their potential. This year 
we reached 200,000 more business owners 
and employees. We gave them:
– help on everything from digital 
marketing and social media to GenAI via 
our LinkedIn Live webinar series with 
partner Upskill
– practical tips and advice from successful 
entrepreneurs through our ‘Let’s Talk 
About’ video series
– access to live webinars, recordings and 
in-person mentoring through our 
partnership with the National Startup 
and Great British Entrepreneur Awards
– a UK-wide tour, webinars and 
mentoring sessions (working with 
Small Business Britain).
Employability and digital skills for 
young people
We’re bridging the gap between education 
and employment by making sure children 
and young people are part of the UK’s 
digital skills agenda. 
Over 1,000 secondary school children from 
disadvantaged backgrounds came to our 
‘Get Work Ready’ days at our UK 
workplaces. The days gave a window into 
the types of STEM roles and skills needed 
in modern business – linking what they 
were learning at school to the skills 
employers look for. 
With the national STEM Learning Centre 
and seven state schools in the Bristol 
Education Partnership, we helped launch the 
ENTHUSE programme. It supports teachers 
with essential continuous professional 
development and industry insights – and 
with workplace events to inspire students to 
consider roles in data, digital, engineering, 
innovation and technology. 
We’re lead sponsor of the FastFutures 
programme to promote and grow digital 
talent in support of the Government’s skills 
agenda. Partnering with Avado and other 
businesses, we’re helping a diverse range of 
18-24 year olds get into digital roles. So far, 
we’ve helped over 7,400 young people 
build their networks, get experience and 
accelerate their careers. We’re currently 
funding two cohorts – a total of 500 learners – 
on a Digital Analyst Boot Camp. Eighty-
seven BT Group colleagues were actively 
involved in mentoring 138 learners this year.
We also support the National Cyber 
Security Centre’s CyberFirst programme. 
Aiming to encourage school pupils into 
cyber and tech careers, the programme 
hosted events for more than 2,000 pupils 
last year.
And it’s our 24th year organising and 
sponsoring the BT Young Scientist & 
Technology Exhibition, which is now 
one of Europe’s leading science and 
technology exhibitions, celebrating STEM 
research and innovation. This year’s event 
included 550 projects from more than 
1,100 students from 219 schools 
across Ireland.
Child online safety
We’re helping to protect children online 
through a number of initiatives. This 
year we:
– relaunched PhoneSmart with better 
new functionality to help minimise 
online harm risks, as more and more 
youngsters own mobile phones
– launched GameSmart – featuring online 
safety information for parents on their 
child’s use of games and gaming devices
– ran a campaign with Internet Matters for 
parents of under-fives on healthy 
technology use
– launched an online safety hub on 
the Internet Matters website.
Senior skills
We have a long-standing history of helping 
UK citizens learn new digital skills. But 
today 7% of the population are still offline. 
Older people are one of the key groups in 
this population. They’re also more likely to 
suffer from social isolation, worries around 
living costs and losing their landline in the 
Digital Voice switchover. 
So far, in partnership with AbilityNet, we’ve 
helped around 3,000 digitally excluded 
over-65s build their confidence and 
develop digital skills. Together, we ran 
several ‘BTea Room’ sessions across the 
UK this year. Hosted in cafes, these free 
digital skills workshops covered a range of 
skills – from getting started with devices, to 
social media and staying safe online.
We teamed up with lexicographer Susie 
Dent to create a Digital Dictionary. It 
breaks down common digital terms that 
younger people take for granted but that 
are often confusing for older people. 
And we’ve also been targeting the 
networks of older and digitally excluded 
people to encourage them to help get 
their loved ones more online.
India skills partnership
Since 2019, BT India, with partner the 
British Asian Trust, has helped around 
1.1m young people with digital skills, STEM 
career guidance and job opportunities. 
This year they launched an Outdoor School 
for Girls, which will provide digital, life, 
sustainability and entrepreneurial skills to 
180,000 girls over the next three years. 
With our support, education company 
Katha is working with the Municipal 
Corporation of Delhi to teach more 
than 4,000 girls, through setting up 
robotics labs, refurbishing IT labs and 
training teachers.
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Our Manifesto continued
In today’s digital age, many 
essential tasks require internet 
access, yet 22% of seniors still do 
not use the internet. To bridge this 
gap, BT Group partnered with 
AbilityNet to offer tailored digital 
training for those aged 65 and 
above, boosting their skills and 
confidence online while promoting 
safety awareness.
Read more at bt.com/seniorskills
We’ve helped 3,000 digitally 
excluded over-65s build their 
confidence and develop 
digital skills.
3,000

Sustainable
Tech must accelerate our 
journey to net zero emissions 
and a circular economy.
We’ve led on climate action for more than 
30 years. We’ve been ‘A’ rated on climate 
by CDP for the past eight years running. 
But as the climate crisis worsens, we all 
need to speed up the transition to a low 
carbon economy. 
This year we refreshed our Carbon 
Reduction Plan. It provides stakeholders 
with a clear view of the actions we’re taking 
to shift BT Group and our value chain to a 
net zero economy. 
We’ll be net zero for our operations by the 
end of March 2031 – and for our full value 
chain by the end of March 2041. We also 
aim to help customers avoid 60m tonnes of 
CO2e and build towards being a circular 
business by the end of March 2030.
Reducing carbon emissions 
in our operations 
We’ve cut our carbon emissions intensity 
by 61%. This is against our science-based 
target of an 87% cut by the end of March 
2031 (compared to FY17 levels). 
All of the electricity we purchase to power 
our buildings estate, shops and networks 
worldwide is certified as renewablea 
through our procurement of energy from 
sources that include power purchase 
agreements (PPAs) and green tariffs, 
supported by renewable energy 
certificates (RECs). 
Long term renewable PPAs met 24% 
of our UK electricity demand this year, 
supporting additional renewable electricity 
infrastructure across the UK grid. Where 
we don’t control the supply of electricity or 
where we can’t guarantee the origin of the 
electricity, we purchase additional RECs to 
cover the proportion of our consumption 
(for example, at landlord controlled sites).
We have more to do to get to net zero. 
But we know how to get there – by 
electrifying our vehicle fleet, 
decarbonising our estate and building 
more energy-efficient networks.
Switching our vehicle 
fleet to electric
Nearly 80% of our operational emissions 
(Scopes 1 and 2) come from our 
commercial fleet of over 33,000 vehicles. 
We’re working hard and investing to 
convert the majority of this fleet to electric 
or zero emission vehicles by the end of 
FY31. In total we have over 4,100 electric 
vehicles (EVs) in our fleet, including more 
than 1,700 that we added this year.
As a founding member of the UK Electric 
Fleets Coalition, we’ll keep on pushing for 
policy measures to drive a UK EV switch. 
This year, the coalition published a new 
document to encourage more policy 
momentum on EVs.
Our start-up and digital incubation arm, 
Etc., has developed an EV charging unit 
built from a street cabinet (traditionally 
used to store broadband and phone 
cabling). We’re exploring the potential 
to turn up to 60,000 cabinets into EV 
charging points. This would increase the 
availability of charging infrastructure on 
the UK’s roads and support Government 
sustainability targets and plans to 
decarbonise the UK transport system. 
This year, we introduced a salary-sacrifice 
scheme for UK colleagues to buy EVs 
through personal lease arrangements. And 
for colleagues in India, we’re introducing 
EVs as part of our transport and shuttle 
passenger services. Today there are 
94 EVs in use and we’ll keep growing 
that number. 
Decarbonising our buildings
We cut our global energy consumption 
by around 140GWh this year – a 4% drop 
on FY23. This was mainly achieved 
through rationalising and upgrading our 
buildings and networks, and reducing 
our fuel consumption as we continue 
to migrate our fleet to EVs.
Our Better Workplace Programme is 
consolidating hundreds of BT Group 
buildings to around 30. The new or 
refurbished buildings have environmental 
impact firmly in mind. New builds meet 
the BREEAMb- Excellent standard. 
A rated
A rated on climate by CDP. 
4,100+
In total we have over 4,100 EVs in our fleet.
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Strategic report
a   99.9% of the global electricity that BT Group purchases is certified as renewable. The remaining 0.1% is where renewable electricity is not available for purchase in the market.
b   Building Research Establishment’s Environmental Assessment Method, which is the world’s leading sustainability assessment for infrastructure.

Building energy-efficient networks
We’re building more energy-efficient fixed 
and 4G/5G networks, while switching off 
our old legacy ones. As well as saving 
energy, full fibre networks are better at 
handling the effects of physical risks like 
flooding and higher temperatures. That 
means fewer faults or engineering visits.
Cutting carbon emissions across 
our value chain
Our Scope 3 carbon emissions account for 
95% of our overall emissions. They come 
mainly from purchased goods in our supply 
chain and from customers using our 
products and services.
Since FY17, we’ve cut our Scope 3 net 
emissions by 26%, to 3,000,873 tonnes of 
CO2e this year. This is a decrease of around 
4% on FY23.
Helping suppliers cut carbon 
We’ll keep working with suppliers on 
cutting carbon. We’ve cut supply chain 
emissions by 25% since FY17. Our target 
is a 42% reduction by the end of 
March 2031. 
This year, we’ve refreshed our climate 
change policy, which forms part of our 
expectations and generic standards 
applicable to suppliers working with us. 
It requires them to conduct climate risk 
assessments, set 1.5ºC aligned science-
based targets and to report on progress 
annually. And we continue to engage with 
key suppliers on carbon reduction through 
contract clauses, for example, we’ve seen 
savings from Circet that reduced over 
100t CO2e in 2023 under its contract with 
BT Group and Openreach.
Also this year we: 
– launched a campaign asking suppliers to 
set 1.5°C aligned science-based targets, 
make them public and report on 
progress annually
– encouraged more key suppliers to report 
to CDP to improve visibility and action 
on emissions. Today, over 300 of them 
are doing that 
– continued working with the Exponential 
Roadmap Initiative and 1.5°C Supply 
Chain Leaders to drive climate action 
across global supply chains – while 
supporting small and medium-sized 
enterprises through the SME Climate 
Hub and UK Business Climate Hub
– joined the JAC (Joint Alliance for CSR) 
Board of Directors. It’s an association of 
27 communications providers working 
together to sustainably transform supply 
chains across the ICT sector.
Cutting our customers’ carbon 
There’s huge potential to use our 
networks, products and services to help 
customers cut their emissions – for 
example through decarbonising the 
grid and improving our products’ 
energy efficiency. 
We’ll help customers avoid 60m tonnes of 
carbon by the end of March 2030 – which 
they’ll do through technologies like full 
fibre broadband, mobile solutions and 
cloud computing. This year we:
– helped customers avoid more than 1.5m 
tonnes of carbon (nearly 3.8m tonnes in 
total since 2021), mainly through our full 
fibre rollout that enables reductions in 
personal or work-related travel 
– published a new carbon abatement 
methodology, to be transparent on how 
we calculate savings (bt.com/carbon-
abatement) 
– expanded our Digital Carbon Calculator 
to include compute and end point 
devices. The calculator helps our larger 
customers measure, track and cut 
carbon footprints across their networks. 
Today, it shows customers are cutting 
their CO2e by 15% on average when 
transforming their networks with us 
– enhanced our Carbon Network 
Dashboard to include an energy 
optimisation recommendation feature, 
which helps our larger customers use 
their networks more efficiently. It 
enables them to measure, monitor 
and reduce energy consumption and 
carbon emissions
– hosted a Sustainability Festival at 
Adastral Park. More than 1,100 people 
came, including big customers, climate-
leaders, start-ups and BT Group 
representatives. The event showcased 
cutting-edge technologies and how to 
drive sustainability and achieve net zero 
emissions in various industries.
Circularity
Developing a circular economy is vital for 
achieving a net zero world. Around 70% 
of global greenhouse gas emissions come 
from material use and handlinga. 
We want to build towards being a circular 
business by 2030, and a circular tech 
ecosystem by 2040.
Products & Services
This year, we collected nearly 2.6m devices 
from consumers and businesses through 
our returns and take back processes.
4%
cut in our energy use this year. 
1.5˚C
Launched a new supplier engagement 
campaign asking our suppliers to set 
1.5°C aligned science-based targets.
60m
We’ve set a target to help customers 
avoid 60m tonnes of carbon by the end 
of March 2030. 
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Our Manifesto continued
This year, we converted over 94,000 
surplus BT Smart Hub 2 into 
Plusnet Hub 2 routers, instead of 
making new routers, which usually 
creates a lot of carbon emissions.
This effort saved around 3,900 
tonnes of CO2e.
By reusing all the electronics 
from the Smart Hub 2, we prevented 
over 80,000 kilograms of new 
electronics from being produced.
Read more at bt.com/
annualreview
a  Circle Economy – The Circularity Gap Report 2022 circulareconomy.europa.eu/platform/en/knowledge/circularity-gap-report-2022-five-years-analysis-circle-economy

Through our EE Trade-In service we 
collected 166,000 mobile devices, 
pushing past the milestone of 1m devices 
traded in since its launch. For FY24, 96% 
of collected devices went for reuse 
and a second life. The rest we recycled 
responsibly. For distributed mobile 
devices our take back rate is 5%. 
We want to increase this to at least 
20% by 2030.
For 2023, our return rate for customer 
premises equipment was 67%. Our target 
is a 75% return rate by FY26a. Customers 
returned over 2.36m hubs and set-top 
boxes. Through our refurbishment process, 
we reused 71% and recycled the rest. 
We also began scaling up refurbishment 
of our business hubs.
To extend the lives of our customers’ 
devices, our EE repair service (approved by 
Apple, Samsung and Google) fixed 58,000 
devices this year (up 94% on FY23).
To measure circularity in a more integrated 
way, we’ve started a pilot using the Circular 
Transition Indicator Tool on some of our 
own brand consumer devices. We’re now 
reviewing the inflows and outflows of those 
devices. We aim to expand the pilot to 
other business areas to implement a 
common measurement approach.
Operational waste – our networks 
and estate
We want to put zero waste into landfill by 
2030. That means increasing the number 
of things we reuse and recycle. Globally, 
we generated 69,000 tonnes of 
operational waste this year – 14% less 
than in FY23. Our UK recycling, reuse and 
recovery rate was 92.1% (90.4% globally).
As part of modernising our network, we 
continued recovering old or end-of-life 
network equipment to reuse or recycle, 
much of which was through our Exchange 
Clearance Operations programme. This 
year, we recovered 3,300 tonnes. We also 
agreed a deal with a leading bank and 
global recycler EMR to support the 
extraction and recycling of copper cable 
from our network until 2028. 
Within our business, we reused 10,000 
pieces of network equipment. And our 
catering partner Lexington, working with 
CauliBox, has been trialling new reusable 
cups and containers to reduce the 
number of disposables we use.
Biodiversity
We continued working to understand our 
impacts on nature and biodiversity, in line 
with the draft Taskforce on Nature-related 
Financial Disclosures (TNFD) framework. 
This year, we ran an impact assessment of 
our operations and procurement. 
As part of our focus on conservation, 
BT Group has partnered with The Royal 
Society of Wildlife Trusts. We provide 
financial contributions to the charity and 
volunteering opportunities for colleagues. 
Openreach created a Business 
Conservation Partnership with the RSPB, 
to make sure that, moving forward, they 
are better placed to implement nature-
positive actions as part of the overall fibre 
build programme.
Openreach has also worked closely 
with NatureScot and National Trust for 
Scotland in providing fibre to Fair Isle 
(between Orkney and Shetland). They 
scheduled their build to make sure that 
nesting birds were undisturbed during 
the breeding season, and worked together 
to protect native plant species.
Water consumption
Our UK water use fell by 12% this year 
to 1,349,324m3, mainly from operating 
adiabatic cooling units more efficiently 
within network equipment operating limits, 
and the pinpointing and fixing of leaks in 
our water supply. 
Advocacy on climate action 
Corporations must advocate on climate 
action. But limiting global warming to 1.5 
degrees – in line with the Paris Agreement 
– will need supportive policies too. 
During the year we continued participating 
in initiatives like RE100, the UK Electric 
Fleets Coalition and EV100, Race to 
Zero and the We Mean Business Coalition. 
We also supported the Fossil to Clean 
campaign to advocate for speeding up the 
shift from fossil fuels to clean energy.
2030
We want to become a circular business 
by 2030 – and build towards a circular tech 
ecosystem by 2040.
20%
We have a 5% take back rate for 
distributed mobile devices – we’ve set 
a target to increase this to 20% by 2030.
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a  This target only relates to equipment which is leased to our consumers under their contract terms.

Colleagues, customers, shareholders, the communities we do business in, suppliers, UK Government 
and regulatory bodies are all key stakeholders. We connect with them at all levels of our business. 
That includes frontline operations, CFUs, CUs and TUs, senior leadership, the Executive Committee 
and the Board and its Committees. 
We engage with them in lots of different ways – from meetings and conferences to reviews, forums 
and webcasts. To understand how well we’re engaging with different groups, the Board and its 
Committees get regular updates from relevant parts of the business and from stakeholders 
themselves. They use them to make better decisions, give feedback and constructively challenge 
activities, programmes and initiatives being considered.
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Strategic report
Our stakeholders
Our stakeholders play a crucial part in our 
strategy of building the strongest foundations, 
creating standout customer experiences and 
leading the way to a bright, sustainable future.
Our stakeholder management group risk 
category recognises just how important 
they are to our business. You can read 
more on page 63.
Our Section 172 statement on pages 92 
to 93 gives examples of how the Board 
and its Committees took our 
stakeholders’ interests into account 
in decision making during the year. 

Colleagues
To create a culture where colleagues 
can be their best and contribute to our 
purpose, ambition, strategy and success, 
they need to be engaged. 
So we must provide work environments 
that help them flourish, give them flexible 
and agile ways of working, deliver brilliant 
training, development and career 
opportunities, and reward performance 
with fair and competitive pay and benefits. 
How we engage with colleagues 
Our Board gets regular updates from 
the Chief Executive and Chief Human 
Resources Officer. Topics range from 
people strategy initiatives to culture and 
overall sentiment in the organisation. 
This year the Board used both our 
Colleague Board and our Designated 
Non-Executive Director for Workforce 
Engagement to engage with our 
workforce (under the UK Corporate 
Governance Code 2018). 
You can read more on pages 90 to 91 
of the Corporate governance report. 
In September 2023, we changed the way 
we measure engagement. We did this to 
bring it up to date with best practice and 
give us better external benchmarks for 
BT Group and our units. 
We introduced quarterly colleague 
engagement surveys. And to compare 
old and new surveys we asked both old 
and new engagement index questions in 
the first September survey. Engagement 
scored pretty consistently between 
old and new measures – at 72% and 
71% respectively. 
Across the year engagement improved by 
two points. We closed the year on 75% in 
line with our target. The measure 
‘Getting things done here is straightforward’ 
is not making enough progress. We’re 
investigating why. 
Initiatives to improve our colleagues’ 
experience seem to be making a 
difference. We’ve focused on leadership, 
making things simpler for colleagues and 
inclusion and diversity. We’ll continue with 
this in the coming months. 
Customers
We want our customers to have standout 
experiences. For that, we must deliver 
outstanding service and differentiated 
solutions and outcomes. 
We have a large and diverse customer 
base, from individuals to multinational 
businesses and governments. And they all 
need different things. So engaging with our 
customers is critical to properly understand 
those varied current and future needs.
Our customers want us to:
– give them an outstanding experience and 
deliver outcomes that match their needs
– deliver consistent, high-quality solutions 
to keep them connected 
– protect their security and data
– offer all the above at a price that’s great 
value for money.
How we engage with customers:
– Our service, sales, and contact centre 
colleagues regularly talk to customers 
to understand what they need and help 
them stay connected.
– Our insight centre of excellence gives 
us a deeper understanding of our 
customers’ needs through research 
techniques and extensive internal and 
external data sources.
– Our CFUs, Executive Committee and the 
Board monitor how well we’re providing 
standout customer experiences by 
regularly reviewing metrics like NPS.
– Our Chief Executive, Executive 
Committee and senior leaders regularly 
review and discuss customer complaints.
– Our Customer Fairness Panel, Customer 
Inclusion Panel, Security Advisory Board 
and Global Advisory Board help us better 
understand customers’ needs and 
experiences through direct 
conversations with them.
– Openreach makes sure every CP gets 
equal access to our fixed network by 
engaging them through a transparent 
and compliant consultation process.
The results:
– We’re simplifying our contract 
communication and charges by 
expressing changes in pounds and 
pence instead of percentages, making 
it clearer for customers.
– We’re visiting every UK region to 
raise awareness and to make sure all 
customers understand the simple 
steps needed to make the move to 
Digital Voice.
72/71%
Engagement scored consistently 
between old and new measures – 
at 72% and 71% respectively.
75%
We closed the year with an engagement 
score of 75%, in line with our target.
5,700
Interacting with over 5,700 customers 
every year to better understand how 
to meet their needs.
BT Group plc Annual Report 2024
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BT Group saw a surge in SMS 
Smishing scams. In response, we 
formed the BT SMS Scam Squad in 
2022 to ensure #TrustinSMS.
Read more at bt.com/
annualreview
Prevented more than 76 million 
SMS scams over the last year 
from reaching victims.
76.1m

Communities
We make a significant economic 
contribution to the UK communities we 
serve. But we’re also at the heart of 
those communities, helping to bring 
them together. 
We need communities to trust us. Without 
that we couldn’t deliver our growth plans 
or our purpose – to connect for good.
The communities we serve 
want us to:
– give them reliable and secure 
connections
– help local people and businesses 
get more from the digital world
– provide direct and indirect employment
– do business ethically and responsibly 
and protect the environment.
How we engage with communities:
– Community members use our products 
and services as part of their daily life 
and work.
– We provide support through retail stores 
and contact centres – and through 
home visits to set up, install and 
maintain our services.
– Our digital inclusion and wider societal 
programmes bring digital skills training 
to millions of UK people (including 
children, older and more vulnerable 
groups, and small businesses).
– We use customer surveys and reputation 
tracking to understand community 
perceptions of us and inform our focus 
areas and targets. Our Executive 
Committee reviews this feedback 
monthly and it’s shared with the 
Board quarterly.
– The Responsible Business Committee 
oversees our societal programmes – 
tracking feedback and performance 
through a dashboard discussed at 
each meeting.
The results:
– Based on a report commissioned in 
2023, in one year we spent more than 
£9.3bn with UK-based suppliers, we 
supported £1 in every £80 of UK Gross 
Value-Addeda and supported a total of 
284,000 UK full-time jobs indirectlya.
– We’re one of the UK’s biggest private 
sector apprenticeship employers. We’ve 
hired over 3,000 apprentices and 
graduates over the past five years and 
we’re planning to hire over 500 more in 
2024. In 2023, we were ranked second 
in the UK’s Top 100 Apprenticeship 
Employers.
– We’ve expanded our full fibre network 
to 3.9m rural homes and businesses as 
part of our 6.2m aim by December 2026 
(see page 20).
– We’re extending 4G coverage to rural 
areas through the shared rural network 
initiative. And we aim to reach 90% of 
the UK’s geography with our 5G network 
by 2027 (see page 20).
– We give extra support to around 1m 
low-income and vulnerable customers 
through our social tariffs and subsidised 
products (see page 35).
– Our gift-in-kind contributions, colleague 
fundraising and donations provided over 
£134,000 to our charity partners Home-
Start UK, to support the most socially 
excluded UK households. 
– We helped fund UNICEF’s ‘digital 
learning passport’ tech platform, 
while colleagues raised over £35,000 
to support their Children’s Emergency 
Fund and other humanitarian 
relief programmes.
– Colleagues donated over £1.3m to 
more than 1,100 charities through 
payroll giving.
– Colleagues volunteered more than 
53,000 hours of their time to our 
charity partners and communities – 
including sharing skills and expertise 
through mentoring and digital skills 
training programmes.
– We also support communities through 
our Manifesto commitments. They 
include our digital skills goal, which this 
year reached a further 3.7m people and 
has helped a total of 23m people since 
FY15 (see pages 34 to 39). 
£9.3bn
We’ve spent more than £9.3bn in one year 
with UK-based suppliers and supported £1 
in every £80 of UK Gross Value-Addeda.
284,000
We supported a total of 284,000 UK full-
time jobs indirectlya.
BT Group plc Annual Report 2024
42
Strategic report
Our stakeholders continued
Openreach brought ultrafast full 
fibre broadband to the remote 
Scottish island of Fair Isle which 
required an innovative engineering 
solution. Our engineers built the 
UK’s first fibre repeater terminal to 
boost the signal enabling life-
changing connectivity as part 
of the Scottish Government’s 
R100 programme. 
Read more at bt.com/
annualreview
a   Taken from ‘The Economic Impact of BT Group plc in the UK’ report 2023 at bt.com/economic-impact, commissioned every two years.

Shareholders
We have both equity and debt investors. 
Our equity investors are corporates and 
institutions – who hold the biggest volume 
of shares – plus around 614,000 individuals. 
Our debt investors are mainly financial 
institutions who buy our publicly traded 
bonds. They’re crucial to making sure we 
have access to debt capital to finance 
our business. 
We have an investment-grade credit 
rating based on the strength of our 
balance sheet, our scale and 
competitive market position. 
Our shareholders want us to:
– deliver a return on their investment 
through dividends and capital growth 
– perform well against our long-term 
strategy and outlook. 
How we engage with shareholders 
and the results:
– We engage with shareholders through 
our investor relations activities, Annual 
Report, financial results, AGM and 
other documents and briefings. 
– Our AGM is a chance for Board directors 
to meet shareholders. In 2023 it was 
held in Birmingham with all resolutions 
passed and published on bt.com/agm. 
We’ll publish arrangements for the 2024 
AGM in the Notice of meeting (see 
page 130). 
– Individual shareholders interact with the 
Company Secretary (or their delegate) 
and also our share registrar Equiniti. 
– Institutional and debt investors engage 
via our investor relations team – through 
one-to-one conversations, roadshows, 
group meetings, conferences and 
industry events. 
– Through this engagement, the 
Chairman, Directors, Chief Executive, 
Chief Financial Officer, other executives 
and our investor relations team had 
222 investor meetings this year. 
Topics included: 
– our strategy and competitive position 
in key markets
– our financial and operational 
performance (particularly in the 
context of inflation, energy and 
pay costs and CPI-linked pricing) 
– capital investment (including 
FTTP and 5G) 
– our capital allocation policy 
– prospective governmental and 
regulatory policy decisions 
– our pension fund valuation. 
– The Board gets regular reports on top 
shareholders, movements in the share 
register, share price performance and 
engagement with investors and analysts. 
It discusses and considers issues 
with management as part of its 
decision making.
The Chairman, directors, 
Chief Executive, Chief 
Financial Officer, 
other executives and 
our investor relations 
team had 222 investor 
meetings this year.
BT Group plc Annual Report 2024
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Strategic report
Our equity investors are corporates and 
institutions – who hold the biggest volume 
of shares - plus around 614,000 individuals.
614,000

Suppliers
Good supplier relationships are essential 
for our success. They help us deliver the 
solutions and propositions that create 
standout customer experiences.
Our suppliers want us to:
– pay them in line with our agreed terms
– help them optimise their own supply 
chains and cash flow management
– act ethically and transparently.
How we engage with suppliers:
We need to know who we’re doing 
business with and who’s acting on 
our behalf. 
So we:
– select suppliers based on principles 
around acting ethically and responsibly
– do due diligence on suppliers before 
and after we sign a contract – covering 
financial health, anti-bribery and 
corruption and whether they meet our 
standards on areas like quality 
management, security and data privacy
– check the things we buy are made, 
delivered and disposed of in a socially 
and environmentally responsible way
– measure suppliers’ energy use, 
environmental impact and labour 
standards – and work with them 
to improve these.
Operating from its Dublin base since April 
2021, BT Sourced is our standalone 
procurement company. It’s focused 
on challenging the traditional ways of 
buying goods and services by simplifying 
processes, introducing new technology 
and working more in partnership with 
suppliers and start-ups.
BT Sourced delivered some key initiatives 
this year:
– With start-up Nnamu we developed and 
piloted a ‘negotiation bot’ based on 
game theory. It recommends optimum 
negotiation strategies and tactics, and 
negotiates autonomously.
– Autonomous AI-powered platform 
Globality is being widely adopted. Its 
generative AI features are speeding up 
our scoping processes and streamlining 
how we define what we need. Plus its 
new E-Negotiation and online NDA 
features are simplifying the whole 
sourcing process.
– Specialist macro risk partner PRISM has 
developed a digitised platform. It shares 
risk reports, giving us instant access to 
strategic risk information and a useful 
archive. It’s a valuable resource which is 
helping us make better, faster 
procurement decisions. 
– Our in-house negotiation analytics team 
continued expanding their AI and 
machine learning capabilities. To give us 
a 360-degree view of our suppliers, they 
combined existing internally developed 
solutions with summaries of earnings 
reports, news feeds, projected spend 
and ESG position. 
– Responding to inflationary challenges, 
we strengthened our partnership with 
C2FO to give suppliers better access to 
competitive working capital. We also 
made C2FO’s early payment solution 
more widely available to thousands of 
our suppliers.
– As part of BT Group’s ESG supply 
chain assurance, we worked with Labor 
Solutions to run a ‘worker’s voice’ 
survey with five key Asia-based 
suppliers. Supported by strong 
identity safeguards, the survey got 
around 1,500 responses. For more 
on ESG, see the ESG Addendum 
(bt.com/esgaddendum).
The results:
– Partnering with start-ups like Nnamu will 
help us scale our digital procurement 
innovations and benefit stakeholders, 
buyers and suppliers.
– Buyers have so far launched more than 
1,000 projects on the Globality platform, 
with a total spend of roughly £7.9bn. 
In December 2023, the platform hit a 
1.1 working day time-to-market, a big 
improvement on the typical seven to 
ten working days with traditional 
sourcing processes.
– Findings from our ‘worker’s voice’ survey 
gave no major concerns. But they did 
give us the chance to strengthen 
relationships with the suppliers we 
surveyed. We will continue and expand 
the programme into FY25. 
– More than 1,000 of our suppliers have 
signed up to C2FO, including many small 
and medium-sized businesses. In 2023 
we facilitated £1.25bn in early payments. 
– We’re building a more resilient supply 
chain by adding our new supplier 
management risk framework (including 
internal controls) into our wider group 
key controls framework.
– Responding to changing geopolitics, 
we’re improving our crisis management 
capabilities. We’re also investing in risk 
intelligence to help us get a clearer view 
of the macroeconomic landscape to 
inform our decisions. You can read more 
on our risk focus on page 61.
BT Group plc Annual Report 2024
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Strategic report
Our stakeholders continued
More than 1,000 of our 
suppliers have signed 
up to C2FO and in 
2023 we facilitated 
£1.25bn in early 
payments.

Government
We added more than £24bn to the UK 
economy based on a report commissioned 
last yeara, supporting critical services and 
working with more than 1,100 public 
sector customers.  
Our networks support vital public services 
like welfare, tax, health, social care, police 
and defence – while protecting citizens’ 
personal data. 
Our relationship with Government bodies 
underpins our three strategic pillars and 
lets us contribute to policies and initiatives 
that promote the best results for 
stakeholders.   
Government stakeholders 
want us to:
– keep investing in our network 
infrastructure
– provide the fastest, most reliable and 
secure connection possible, to the 
widest possible range of communities
– invest in the best products and services, 
at fair prices, with high levels of 
customer service
– support vulnerable customers 
through tough economic times.
Our public policy work 
with Government covers 
a wide territory, from 
infrastructure investment 
to national security, from 
regulating online harms to 
trade and economic policy.
How we engage with Government, 
and the results:
– Our policy and public affairs team 
manages our relationships with 
Government and other politicians.   
– We operate part of the UK’s Critical 
National Infrastructure and support 
national security. 
– Our Business unit delivers and looks 
after public sector contracts like the 
Emergency Services Network. 
– Under the Communications Act 2003, 
the government can ask us (and others) 
to run or restore services during 
disasters. The Civil Contingencies Act 
2004 also says that they can impose 
obligations on us (and others) in 
emergencies, or in connection with civil 
contingency planning.
– We keep an open dialogue with 
Government through our Chairman, 
Chief Executive and senior leaders – as 
well as through consultation responses 
and cross-industry initiatives. Through 
those conversations we build support 
for policies that will deliver good results 
for the UK and our shareholders.   
– The Board comments on discussions 
with Government through updates from 
the Chairman, Chief Executive and 
Executive Committee members.  
– Our public policy work with Government 
covers everything from infrastructure 
investment to national security, from 
regulating online harms to trade and 
economic policy. 
– This year, we contributed to government 
initiatives including its wireless 
infrastructure strategy, supply chain 
resilience, data policy, drones, quantum 
technologies and AI.  
– We’ve given input and evidence into 
legislation including the Digital Markets, 
Competition and Consumer Bill, Data 
Protection and Digital Information Bill, 
and Online Safety Bill.   
Regulators
Regulation helps protect consumers 
and promote healthy competition.
Our main regulatory relationship is with 
Ofcom who regulate UK communications 
and TV services. We also work with other 
regulatory bodies like the Financial 
Conduct Authority, Competition and 
Markets Authority and the Information 
Commissioner’s Office.
Our regulators want us to:
– act fairly and transparently with customers
– compete fairly in the markets we 
operate in
– invest in the UK’s critical digital 
infrastructure
– promote investment and innovation.
How we engage with regulators:
– We have a constructive, open dialogue 
with Ofcom through our Chairman, 
Chief Executive and senior leaders. 
Conversations focus on how regulation 
can support investment in world class 
digital infrastructure, while keeping 
the market competitive and fair.
– At a working level we regularly engage 
with Ofcom and other regulators 
through industry consultations and 
information requests – helping them 
analyse and understand the impact 
of proposed regulatory changes.
The results:
– In 2017, we put the Commitments in 
place. They give Openreach a degree of 
strategic and operational independence. 
We regularly engage with Ofcom and 
other CPs to reassure them that we’re 
following the letter and spirit of the 
Commitments.
– During the year, and on the Board’s 
behalf, the BT Compliance Committee 
monitored compliance with the 
Commitments through both our culture 
and colleagues’ behaviour. Ofcom and 
other stakeholders attended BT 
Compliance Committee meetings by 
invitation. The responsibilities previously 
held by this Committee have 
transitioned to both the Audit & Risk and 
Responsible Business Committees for 
FY25 onwards. See pages 99 and 105 
for more details. 
BT Group plc Annual Report 2024
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Strategic report
a   ‘The Economic Impact of BT Group plc in the UK’, Hatch – 2023 Edition, based on FY22 data.

 
Environment
See pages 28 to 29, 37 to 39, 
49, 71 to 80, 92 and 105.
Policies
Our Health, Safety and Environment 
Group Policy explains how we’re 
protecting the environment and 
building a more sustainable future. 
Our main priorities are cutting 
carbon emissions (our biggest 
environmental impact) and being 
more energy efficient.
It also sets out our commitment to 
partnering with stakeholders. And it’s 
supported by our environmental 
strategy and goals of becoming a net 
zero and circular business.
Every year we report on how we’re 
doing in our operations and wider value 
chain (see pages 37 to 39).
Due diligence
The Group Health, Safety & 
Environment Sub-Committee monitors 
and manages our environment strategy 
and risks, acting on the Executive 
Committee’s behalf.
The Responsible Business Committee 
oversees progress against our 
environmental goals. We review and 
update our policies every year.
Results
You can read more on our plans and 
performance – including progress on net 
zero – on pages 37 to 39 and in our ESG 
Addendum at bt.com/esgaddendum.
Risks
We consider environmental and 
climate-related risks across our whole 
business – including stakeholder and 
supplier management, health, safety 
and environment, and operational 
resilience. There’s more on our group 
risk categories on pages 63 to 70.
We’re mitigating our environmental 
impact and key physical climate risks in 
lots of ways.
You can read more on pages 37 to 39 
and in our Task Force on Climate-
related Financial Disclosures statement 
on pages 71 to 80.
Colleagues
See pages 24, 30 to 33, 
41, 90 to 91 and 92.
Policies
Our people’s wellbeing will always be 
at the heart of our business.
It’s in our code: We always put wellbeing 
and safety first. It’s also written into 
our Health, Safety and Environment 
Group Policy. 
Our strategy is to build a fulfilled, safe, 
happy and healthy team in a culture where 
everyone can thrive. We do this through 
wellbeing programmes to boost 
colleagues’ performance, resilience, 
happiness and engagement.
International standard ISO 45003 
‘Psychological health and safety at work’ 
says that psychosocial risk management 
must have needs from all levels and 
functions – especially top management.
We agree with the concepts raised in the 
standard. We apply them to help prevent 
work-related injuries or ill-health in 
colleagues and to promote positive 
wellbeing at work.
Our Inclusion, Equity and Diversity (IED) 
strategy takes a programmatic, evidence-
based approach. 
It helps us understand and remove bias 
and other cognitive barriers from policies, 
processes, systems and decision making.
It supports our aim to build the strongest 
foundations by making sure we apply an 
inclusion lens to everything we do and by 
promoting a healthy culture.
Due diligence
We plan against three goals – Promote, 
Support and Restore. 
From these we create focused, evidence-
based interventions and campaigns. They 
promote the importance of wellbeing and 
ensure all our people can access wellbeing 
support and services.
We also work with stakeholders across the 
business to make sure our wellbeing 
approach is consistent, integrated and 
part of our culture.
We review policies every year, updating 
them when needed. We update the Board 
and Executive Committee regularly. 
We coordinate health and safety through 
our Group Health, Safety & Environment 
Sub-Committee and with our unions 
through the Good Work Forum.
Well-established governance processes 
make sure we integrate IED into decisions 
and policy development. We report to the 
Executive Committee on our strategy’s 
relevance and effectiveness and on 
progress against our diversity targets. 
We also update the Board. Our People 
Networks champion members’ concerns 
and are sponsored by Executive 
Committee members or by the CEO, 
Openreach. Our Colleague Board also 
helped shape and influence IED plans. We 
review policies every year, updating them 
when needed. You can read more about 
the Colleague Board on pages 90 to 91 – 
and about other ways we engage with 
colleagues on page 41.
Results
There are details of what we’ve done to 
apply our policy on page 33.
You’ll find information on absence rates 
and other wellbeing metrics in our ESG 
Addendum at bt.com/esgaddendum.
Our strategy creates a culture that 
embraces IED and embeds it into 
our decisions. 
There are details of what we’ve done this 
year to support our strategy – together 
with the latest IED statistics – on page 24.
Risks
We reflect wellbeing as part of the people 
and health, safety and environment group 
risk categories on page 68.
We reflect IED risks in our people group 
risk category on page 68.
BT Group plc Annual Report 2024
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Strategic report
Non-financial and sustainability information 

 
Social and 
community
See pages 26 to 27, 34 to 39, 
42, 49 and 92.
Policies
Our Manifesto is rooted in our purpose. 
It’s supported by commitments on three 
themes – responsible, inclusive and 
sustainable.
It recognises we’ll only succeed if we 
help solve some of the problems faced 
by the societies and customers we serve. 
In particular, our commitment to help 
give people digital skills will benefit 
wider society.
Our ‘BT Group charity approach’ 
explains how we partner with 
charities and support our people’s 
volunteering work.
Due diligence
The Responsible Business Committee: 
– oversees our Manifesto commitments 
and progress
– reviews our strategy and progress on 
societal programmes and targets
– monitors progress against the goal of 
reaching 25m UK people with help to 
improve their digital skills by FY26.
Results
We report on how we invest in 
communities on page 42.
You can read more on our Manifesto 
and what we’ve achieved this year on 
pages 34 to 39. That includes progress 
on helping people improve their 
digital skills.
Risks
We consider digital inclusion risks as 
part of our stakeholder management 
group risk category on page 63.
Human 
rights
See page 35 
Policies
Our Human Rights Policy explains how 
we respect and champion human rights 
in our business – and through our 
relationships with others. It’s supported 
by our responsible tech principles. Our 
Manifesto reinforces these principles 
and our respect for human rights.
Due diligence
We have processes to identify and 
tackle potential and actual human rights 
impacts across our business. That 
includes checking we’re applying 
responsible tech principles when we 
develop, buy, sell and use tech. Our 
Responsible Tech and Human Rights 
Sub-Committee oversees how we 
implement the principles, giving 
updates to the Responsible Business 
Committee. 
Respecting human rights is part of 
mandatory annual training for all 
colleagues. 
We identify, measure and tackle human 
rights impacts through our Speak Up 
whistleblowing service, and through risk 
assessments and on-site audits.
Results
We’ve improved our Business sales due 
diligence to help us better identify and 
tackle potential human rights impacts 
from our products and services.
We report on our responsible tech 
principles on page 35.
Risks
We consider human rights risks as part 
of our stakeholder management and 
supply management Group risk 
categories on pages 63 and 70.
Anti-bribery 
and corruption
Policies
Being trusted: our code sets out 
promises including zero-tolerance of 
bribery and corruption. It’s supported by 
specific standards on Anti-Bribery and 
Corruption (ABC), gifts and hospitality, 
conflicts of interest and high risk third 
parties. 
The code describes how we expect 
everyone who works here – or on our 
behalf – to do business.
It also covers extra policy areas like 
human rights, and equality and diversity. 
And it provides an ethical framework for 
our ambition to become the world’s 
most trusted connector of people, 
devices and machines.
Through our commitment to doing the 
right thing, it shows how stakeholders 
can depend on us.
Due diligence
We do due diligence on third parties, 
engage external providers to assess 
higher risk areas, and use an integrity 
risk dashboard to identify potential 
focus areas. 
We take a risk-based approach to third-
party due diligence. We also have 
enhanced approval, due diligence and 
monitoring processes in place for higher 
risk third parties.
In 2024, we’re launching a new system 
to better manage gifts and hospitality 
and conflicts of interest disclosures.
Results
All colleagues get mandatory training 
on our code. We also publish 
communications that reinforce policies. 
Two of our quarterly colleague 
engagement surveys include questions 
on ethical perception, with results 
shared with senior management.
Speak Up, our whistleblowing service, 
lets anyone who works for (or with) us to 
confidentially report anything that goes 
against our code. This includes bribery, 
corruption, human rights violations, 
bullying or harassment. It had 744 
reports this year. 
Risks
We consider ABC and ethical conduct 
risks within the legal compliance group 
risk category – where risks apply across 
our operations generally. 
See page 66 for more.
BT Group plc Annual Report 2024
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Strategic report

 
Financial 
Year ended 31 March
Changes to our KPIs
We continue to monitor and evolve our 
KPIs to ensure those reported are the best 
measures against our strategy. During 
FY24 we have updated our KPIs to more 
accurately reflect our strategic priorities. 
We now recognise ‘units on legacy’ 
as a KPI, which monitors customer 
migration from legacy to our strategic 
network platforms.
We no longer recognise the cumulative 
number of people trained on digital skills 
as a KPI, but we still recognise it as an 
important metric and track progress – see 
page 35 for more details. 
Adjusteda EBITDA margin has been 
discontinued as a KPI, although revenue 
and adjusteda EBITDA remain KPIs.
Reported revenue
(£m)
Definition
This is our revenue as reported in our income 
statement.
Performance
Reported revenue was £20,797m (FY23: £20,681m). 
The increase was driven by price increases and fibre-
enabled product sales in Openreach, increased service 
revenue in Consumer with annual contractual price 
rises being aided by higher roaming and increased 
FTTP connections, partly offset by legacy product 
declines and a one-off revenue adjustment in Business. 
You can read more details about CFU performance 
on pages 56 to 57.
1,2,3
Link to strategy
Adjusteda EBITDA 
(£m)
Definition
This measures our earnings before specific items, 
net finance expense, taxation, depreciation and 
amortisation and share of post tax profits or losses 
of associates and joint ventures. 
Performance
Adjusted EBITDA was £8,100m (FY23: £7,928m). 
The increase was primarily due to revenue flow 
through and cost control more than offsetting cost 
inflation and one-off items; Openreach and 
Consumer delivered strong EBITDA growth, 
partially offset by EBITDA decline in Business due to 
increased input costs and legacy high-margin 
managed contract declines.
You can read more on page 52.
1,2,3
Link to strategy
Normalised free cash flowb
(£m)
Definition
This measures free cash flow (net cash inflow from 
operating activities after capital expenditure) after 
adjusting for a number of measures, the largest 
being net interest paid, payments of lease liabilities, 
pension deficit payments, specific items and net 
cash flows related to the sale of contracts assets. 
For a full definition refer to page 232.
Performance
We generated £1,280m of normalised free cash 
flow (FY23: £1,328m). This was down 4% from last 
year and reflects working capital timing and a prior 
year tax refund, offset by EBITDA growth and lower 
capital expenditure. 
1,2,3
Link to strategy
Reported capital expenditure
(£m)
Definition
This measures additions to property, plant and 
equipment and intangible assets during the year. 
See note 4 to the consolidated financial statements 
for a reconciliation to the measures reported the 
group accounts. 
Performance
Reported capital expenditure was £4,880m (FY23: 
£5,056m). The decrease was the result of lower 
networks spend despite higher FTTP build in the 
year due to reduced unit costs and efficiencies.
1,2,3
Link to strategy
 
Return on capital employed (ROCE) 
(%)
Definition
ROCE is adjusted earnings before interest and tax as 
a percentage of equity, debt and debt-like liabilities 
excluding balances associated with tax and 
management of financial risk. For a full definition 
and a reconciliation to the nearest IFRS measure 
see page 232.
Performance
ROCE for the year was 8.5% (FY23: 8.3%). This is 
primarily due to slightly higher adjusted earnings 
offset by increased capital employed which reflects 
higher debt to fund our fibre build programme.
1,2,3
Link to strategy
BT Group plc Annual Report 2024
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Strategic report
Our key performance indicators (KPIs) 
We use ten KPIs - five operational and five financial.
We reconcile the financial measures to the closest IFRS measure on pages 230 to 233.
 20,797 
 20,681 
 20,850 
 21,331 
 22,905 
 8,100 
 7,928 
 7,577 
 7,415 
 7,907 
 1,280 
 1,328 
 1,392 
 1,459 
 2,011 
4,880
5,056
5,286
4,216
3,960
 8.5 %
 8.3 %
 8.7 %
 8.6 %
 10.2 %

 
Operational 
At 31 March
BT Group Net Promoter Score (NPS) 
point increase/(decrease) 
Definition
This tracks changes in our customers’ perceptions of 
BT Group since we launched the measure in April 
2016. It s a combined measure of ‘promoters’ minus 
‘detractors’ across our business units. BT Group NPS 
measures the net promoter score in our retail businessc 
and net satisfaction in our wholesale business. 
Performance
BT Group NPS increased by 1.0 point, (FY23: down 
1.0 point) as we continue to focus on creating 
standout customer experiences with perceptions 
improving for Consumer, Business and Openreach. 
You can read more about these and our approach to 
customer experience on pages 26 to 27.
2
Link to strategy
Total Openreach FTTP connections 
(m)
Definition
This tracks how many premises are connected to 
Openreach’s full fibre (FTTP) network.
Performance
4.7m customers were connected to Openreach’s 
FTTP network at 31 March 2024 (FY23: 3.1m). 
Openreach’s full fibre footprint reaches nearly 
14m homes with a further 6m where initial build 
is underway, and we’re heading towards 25m 
premises by the end of 2026. You can read more 
about the full fibre rollout on page 20.
1
Link to strategy
Total 5G subscriptions 
(m)
Definition
This measures the number of BT retail customers 
who have a 5G subscription.
Performance
11.1m BT retail customers are able to connect to 
our 5G network at 31 March 2024 (FY23: 8.6m). 
We continue to expand our 5G network which now 
covers 75% of the UK population. You can read 
more on our 5G coverage and rollout on page 20.
1
Link to strategy
Percentage reduction in carbon
emissions intensity (% reduction)
Definition
This measures performance against our target to 
cut carbon emissions intensity by 87% by the end of 
March 2031 compared to FY17 levels. It’s measured 
by reference to tonnes of CO2e (carbon dioxide 
equivalent) per £m value added (adjusteda EBITDA 
plus employee costs).
Performance
Against our carbon emission intensity reduction 
target this year we achieved a 61% reduction from 
our baseline year (FY17) (FY23d: 55%). You can find 
more information on what we’re doing to tackle 
environmental challenges and our journey to net 
zero emissions on pages 37 to 39.
3
Link to strategy
Units on legacy 
(m)
Definition
This tracks customer migrations from legacy to 
strategic network platforms, which enables our 
legacy platforms to be decommissioned. A ‘unit’ is a 
circuit within, or a connection to our network.
Performance
Since announcing our transformation in FY20, we 
have reduced the number of legacy connections by 
nearly 60% by migrating customers to Digital Voice, 
4/5G and Fibre broadband.
2,3
Link to strategy
Link to strategy 
Each KPI measures how we’re doing 
against at least one of our strategic 
pillars. You can read more about these, 
and our progress against them, from 
page 19.
1_Build the strongest foundations
2_Create standout customer experiences
3_Lead the way to a bright,
      sustainable future
 Link to directors’ remuneration
The annual bonus and long-term 
incentive plans that comprise our 
directors’ remuneration are each linked 
to certain KPIs. See the Report on 
directors’ remuneration on pages 106 
to 124.
a  Adjusted EBITDA is defined as the group profit or loss 
before specific items, net finance expense, taxation, 
depreciation and amortisation and share of post tax 
profits or losses of associates and joint ventures, as 
explained on page 232.
b Normalised free cash flow as defined on page 232.
c Includes our Consumer brands as well as Business unit 
excluding Wholesale.
d Restated from 56% as presented in the FY23 Annual 
Report following review of our carbon emissions. 
BT Group plc Annual Report 2024
49
Strategic report
 
1.0 
 
(1.0) 
 
2.3 
 
7.8 
 
5.5 
 
4.7 
 
3.1 
 
1.8 
 
0.9 
 
0.5 
 
11.1 
 
8.6 
 
5.3 
 
1.6 
 
0.1 
 61 % 
 55 % 
 55 % 
 57 % 
 43 % 
6.5
10.6
11.6
14.2
16.2

 
Alternative performance measures
We assess the performance of the group using various alternative 
performance measures. As these are not defined under IFRS they 
are termed ‘non-GAAP’ or ‘alternative performance’ measures. 
We reconcile these to the nearest prepared measure in line with 
IFRS on pages 231 to 233. The alternative performance measures 
we use may not be directly comparable with similarly titled 
measures used by other companies.
FY24 Capital expenditured
£4,880m 
Revenue £m
£20,797m 1%
Profit before tax £m
£1,186m (31)%
Adjusteda EBITDA £m
£8,100m 2% 
Operating cash flow £m
£5,953m (11)%
Normalised free cash flowb £m
£1,280m (4)%
Net debtc £m
£19,479m £620m
Earnings per share pence
@vanessa
BT Group plc Annual Report 2024
50
Strategic report
Group performance
 
20,797 
 
20,681 
 
1,186 
 
1,729 
 
8,100 
 
7,928 
 
5,953 
 
6,724 
 
1,280 
 
1,328 
 
19,479 
 
18,859 
18.5p
22.0p
8.7p
19.4p

Performance
We delivered growth in revenue and adjusteda EBITDA; 
normalised free cash flowb was delivered ahead of our guidance 
range; and capital expenditure was down 3%.
Financial outlookf
Result
Performance 
against 
financial 
outlook
Change in adjustede 
revenue
Growth on a Sport 
JV pro formag 
basis
Up 2%
In line
Adjusteda EBITDA
Growth on a Sport 
JV pro formag 
basis
Up 1%
In line
Capital expenditured
c.£5.0bn
 £4.9bn 
Better
Normalised free 
cash flowb
Toward the top 
end of £1.0-1.2bn
 £1.3bn 
Better
Reported revenue was £20,797m, up 1%; and adjustede revenue 
was up 2% on a Sports JV pro formag basis due to price increases 
and fibre-enabled product sales in Openreach, increased service 
revenue in Consumer with annual contractual price rises being 
aided by higher roaming and increased FTTP connections, 
partly offset by legacy product declines and a one-off revenue 
adjustment in Business (see note 5 to the consolidated 
financial statements).
Adjusteda EBITDA of £8,100m was up 2%; adjusteda EBITDA 
was up 1% on a Sports JV pro formag basis, with revenue flow 
through and cost control more than offsetting cost inflation 
and one-off items.
We have recognised a non-cash impairment of goodwill allocated 
to Business of £488m as a specific item, reflecting a decline in 
profitability in recent years.
Reported profit before tax of £1,186m was down 31%, primarily 
due to impairment of goodwill, increased depreciation, 
amortisation and pension interest expense, partially offset by 
adjusteda EBITDA growth.
Capital expenditured of £4,880m was down 3%, primarily driven 
by lower networks spend despite higher FTTP build in the year 
due to reduced unit costs and efficiencies; cash capex of 
£4,969m was down 6%.
Normalised free cash flowb was £1,280m, down 4% due to 
working capital timing and a prior year tax refund, partly offset 
by EBITDA growth and lower capital expenditure.
Financial outlook
Despite challenging macroeconomic conditions, cost of living 
challenges and a highly competitive market for connectivity 
services, we are still well positioned to deliver consistent and 
predictable growth and value through delivery of our focused 
strategy. Our outlook is underpinned by confidence in our 
unrivalled assets, leading network position, strong brands, ever-
improving customer experience and continued focus on 
transformation.
In FY25 we expect adjustede revenue growth of 0-1.0% and 
EBITDA of around £8.2bn. Capital expenditure excluding 
spectrum will be less than £4.8bn, with normalised free cash 
flow of around £1.5bn.
From FY26 to FY30, we expect consistent and predictable revenue 
growth and EBITDA growth ahead of revenue, enhanced by cost 
transformation. Capital expenditure will remain at less than £4.8bn 
until FY26 before reducing by c.£1bn post peak FTTP build. We 
expect to deliver c.£2.0bn in normalised free cash flow in FY27 
and c.£3.0bn by the end of the decade.
FY25 outlook
End of decade 
Change in 
adjustede revenue
0 - 1.0%
Consistent and predictable 
growth
Adjusteda EBITDA
c.£8.2bn
Consistent and predictable 
growth ahead of revenue 
enhanced by cost 
transformation
Capital 
expenditured
<£4.8bn
<£4.8bn to FY26 
Reduces by c.£1bn post 
peak FTTP build rate
Normalised free 
cash flowb
c.£1.5bn
c.£2.0bn in FY27
  c.£3.0bn by end of decade
Dividend
We have declared a final dividend of 5.69 pence per share (pps), 
increasing the full year dividend to 8.00pps, a year-on-year 
increase of 3.9% (FY23: 7.70pps).
We reconfirm our progressive dividend policy which is to maintain 
or grow the dividend each year whilst taking into consideration a 
number of factors including underlying medium-term earnings 
expectations and levels of business reinvestment.
The Board expects to continue with this policy for future years, and 
to declare two dividends per year with the interim dividend being 
fixed at 30% of the prior year’s full year dividend.
Simon Lowth
Chief Financial Officer
15 May 2024
BT Group plc Annual Report 2024
51
Strategic report
a   Adjusted EBITDA is defined as the group profit or loss before specific items, net finance expense, taxation, depreciation and amortisation and share of post tax profits or losses of 
associates and joint ventures, as explained on page 232. 
b   Normalised free cash flow as defined on page 232.
c   Net debt as defined on page 231.
d   Additions to property, plant and equipment and intangible assets in the period. See note 4 to the consolidated financial statements for a reconciliation. 
e   Adjusted measures exclude specific items, as explained on page 231.
f    Financial outlook originally provided in May 2023 was updated in November 2023 to clarify capital expenditure of c£5.0bn and normalised free cash flow at the top end of the 
£1.0-£1.2bn range.
g   On 1 September 2022 BT Group and Warner Bros. Discovery announced completion of their transaction to form a 50:50 joint venture (JV) combining the assets of BT Sport and 
Eurosport UK. Financial information stated as pro forma is unaudited and is presented to estimate the impact on the group as if trading in relation to BT Sport had been equity 
accounted for in previous periods, akin to the JV being in place historically. Please refer to Additional Information on page 233 for a bridge between financial information on a reported 
basis and a Sports JV pro forma basis, which shows a decrease of £238m to adjusted revenue and increase of £71m to adjusted EBITDA.

Adjustedb operating costs
Year ended 31 March (£m)
Summarised income statement
2024
2023
Year ended 31 March
£m
£m
Revenue
 
20,797  
20,681 
Operating costsa
 
(13,185)  
(13,244) 
Depreciation and amortisation
 
(5,398)  
(4,818) 
Operating profit
 
2,214  
2,619 
Net finance expense
 
(1,007)  
(831) 
Share of post tax profit/(loss) of 
associates and ventures
 
(21)  
(59) 
Profit before tax
 
1,186  
1,729 
Tax
 
(331)  
176 
Profit for the period
 
855  
1,905 
Revenue
Reported revenue was £20,797m, up 1% due to fibre-enabled 
product sales and price increases in Openreach, increased service 
revenue in Consumer driven by contractual price rises, partly 
offset by the prior year removal of BT Sport revenue and legacy 
product declines and a one off revenue adjustment in Business 
(see note 5 to the consolidated financial statements). Revenue 
was up 2% on a Sports JV pro formae basis.
You can find details of revenue by CFU on pages 56 to 57. Note 5 
to the consolidated financial statements shows a full breakdown of 
revenue by all our major product and service categories.
Operating costs
Reported operating costs were £18,583m, up 3% year-on-year 
due to the goodwill impairment (see page 53), excluding this costs 
are flat with tight cost control and the removal of BT Sport rights 
and production costs, partly offset by cost inflation and one-off 
items.
We have now achieved our £3bn cost savings target 12 months 
early at a cost to achieve of £1.5bn, £0.1bn lower than target 
(FY23: achieved gross annualised savings of £2.1bn and costs of 
£1.1bn).The cumulative cash costs incurred amount to £1.5bn 
(FY23: £1.1bn).
Note 6 to the consolidated financial statements shows a detailed 
breakdown of our operating costs.
Adjusted EBITDA
Adjustedc EBITDA of £8,100m, up 2%, primarily driven by revenue 
flow through and cost control more than offsetting cost inflation 
and one-off items; Openreach and Consumer delivered strong 
EBITDA growth, partially offset by EBITDA decline in Business due 
to increased input costs and legacy high-margin managed 
contract declines. Adjustedc EBITDA was up 1% on a Sports JV pro 
formae basis.
You can find details of adjusted EBITDA by CFU on pages 
56 to 57.
Profit before tax
Reported profit before tax of £1,186m was down 31%, primarily 
due to impairment of goodwill, increased depreciation, 
amortisation and pension interest expense, partially offset by 
adjustedb EBITDA growth.
Specific items
As we explain on page 230, we separately identify and disclose 
those items that in management’s judgement need to be disclosed 
by virtue of their size, nature or incidence. We call these specific 
items. Specific items are used to derive the adjusted results as 
presented in the consolidated income statement. Adjusted results 
are consistent with the way that financial performance is measured 
by management and assists in providing an additional analysis of 
the reported trading results of the group. 
Specific items resulted in a net charge after tax of £963m (FY23: 
£253m). The main components were goodwill impairment of 
£488m (FY23: £nil), restructuring charges of £388m (FY23: 
£300m) and interest expense on retirement benefit obligation of 
£121m (FY23: £18m); partly offset by a tax credit on specific items 
of £145m (FY23: credit of £308m).
Note 9 to the consolidated financial statements shows the full details 
of all revenues and costs that we have treated as specific items.
BT Group plc Annual Report 2024
52
Strategic report
Group performance continued
18,062
(354)
(127)
(24)
(76)
96
206
273
146
381
18,583

Taxation
The effective tax rate on reported profit was 27.9% (FY23: 
negative 10.2%) which is higher than the UK corporation tax rate 
of 25% primarily due to a non-deductible goodwill impairment, 
partly offset by the UK patent box regime, which taxes some of our 
UK profits at 10%. The FY23 rate was lower due to the previous 
super deduction regime, the non-taxable gain on the revaluation 
and disposal of the BT Sports business and the lower UK 
corporation tax rate of 19%.
The effective tax rate on adjustedb profit was 20.7% (FY23: 5.8%) 
for the same reasons.
At the end of FY24, we had c.£11bn (FY23: c.£8bn) of carried 
forward UK tax losses.
We made income tax payments of £59m (FY23: £136m refund).
Our tax expense recognised in the income statement before 
specific items was £476m (FY23: £132m). We also recognised a 
£678m tax credit (FY23: £642m tax credit) in the statement of 
comprehensive income, mainly relating to the increase in our IAS 
19 deficit.
We expect our sustainable effective tax rate before specific items 
to be around the UK rate of corporation tax, as we do most of our 
business in the UK.
Earnings per share
Reported earnings per share was 8.7p, down 10.7p, while 
adjustedb earnings per share was 18.5p, down 3.5p.
Capital expenditure
Capital expenditure was £4,880m (FY23: £5,056m), down 3% 
primarily driven by lower network spend despite higher FTTP 
build in the year, due to reduced unit costs and efficiencies. 
Cash capital expenditure was down 6% at £4,969m, with the 
difference to reported capital expenditure primarily representing 
the timing of government grant funding repayments.
Cash flow
Net cash inflow from operating activities was £5,953m, down 11%.
Normalised free cash flowd was £1,280m, down 4% primarily due 
to working capital timing and a prior year tax refund, offsetting 
EBITDA growth and lower cash capital expenditure. Year-on-year 
net working capital includes £(506)m from lower utilisation of a 
supply chain financing programme offset by £305m from the sale 
of cash flows of contract assets relating to mobile handsets and 
£105m as a prepayment for the forward sale of copper.
You can see a reconciliation to normalised free cash flowd from net 
cash inflow from operating activities (the most directly 
comparable IFRS measure) on page 232. 
The net cash cost of specific items adjusted from normalised 
free cash flowd was £439m (FY23: £404m), primarily relating 
to restructuring payments.
Sports JV performance
Our joint venture with Warner Bros. Discovery (‘Sports JV’), which 
has been rebranded to TNT Sports during the year, continues to 
deliver a compelling sports offering after extending Premier 
League rights and adding the FA Cup to its comprehensive line-up 
of premium content. Underlying trading operations in FY24 were 
profitable but we recognised a share of losses after tax of £41m 
after adjustments made to align with the group’s accounting policies.
Goodwill impairment
We perform an annual goodwill impairment review by reference 
to the value in use of our cash generating units (CGUs) which 
represent the smallest identifiable groups of assets that generate  
independent cash inflows. Our CGUs are deemed to be Consumer 
and Business.
Our FY24 impairment testing exercise concluded that there is 
significant headroom in our Consumer CGU, consistent with FY23. 
The carrying amount of goodwill allocated to this CGU at 31 March 
2024 was £3.9bn (FY23: £3.9bn). 
The carrying value of the Business CGU exceeded its value in use 
by £488m. We have therefore booked an impairment charge 
equivalent to this amount (FY23: £nil). The charge has been 
recognised as a specific item. 
After impairment, the carrying amount of goodwill allocated to the 
Business CGU at 31 March 2024 was £3.6bn (FY23: £4.1bn). Of 
the £4.1bn in FY23, £2.6bn relates to the acquisition of EE in 2016 
with the rest relating to historical small acquisitions. 
For more information see note 13 to the consolidated financial 
statements. 
BT Group plc Annual Report 2024
53
Strategic report
a   Excluding depreciation and amortisation.
b   Adjusted measures exclude specific items, as explained on page 230.
c   Adjusted EBITDA is defined as the group profit or loss before specific items, net finance expense, taxation, depreciation and amortisation and share of post tax profits or losses of 
associates and joint ventures, as explained on page 231. 
d   Normalised free cash flow as defined on page 232.
e   On 1 September 2022 BT Group and Warner Bros. Discovery announced completion of their transaction to form a 50:50 joint venture (JV) combining the assets of BT Sport and 
Eurosport UK. Financial information stated as pro forma is unaudited and is presented to estimate the impact on the group as if trading in relation to BT Sport had been equity 
accounted for in previous periods, akin to the JV being in place historically. Please refer to Additional Information on page 233 for a bridge between financial information on a 
reported basis and a Sports JV pro forma basis, which shows a decrease of £238m to adjusted revenue and increase of £71m to adjusted EBITDA.

Summarised balance sheet
2024
2023
Year ended 31 March
£m
£m
Intangible assets
 
12,920  
13,687 
Property, plant and equipment
 
22,562  
21,667 
Right-of-use assets
 
3,642  
3,981 
Derivative financial instruments
 
1,070  
1,479 
Joint ventures and associates
 
307  
359 
Preference shares in joint ventures
 
533  
555 
Cash and cash equivalents
 
414  
392 
Investments
 
2,395  
3,577 
Trade and other receivables
 
4,206  
3,563 
Contract assets
 
1,740  
1,934 
Deferred tax assets
 
1,048  
709 
Other current and non-current assets  
902  
849 
Total assets
 
51,739  
52,752 
Loans and other borrowings
 
18,526  
18,521 
Derivative financial instruments
 
539  
383 
Trade and other payables
 
6,964  
7,484 
Contract liabilities
 
1,081  
1,052 
Lease liabilities
 
4,955  
5,359 
Provisions
 
649  
598 
Retirement benefit obligations
 
4,882  
3,139 
Deferred tax liabilities
 
1,533  
1,620 
Other current and non-current 
liabilities
 
92  
82 
Total liabilities
 
39,221  
38,238 
Total equity
 
12,518  
14,514 
Pensions
The IAS 19 deficit has increased to £4.8bn at 31 March 2024, net 
of tax £3.8bn (FY23: £3.1bn, net of tax £2.5bn), mainly due to the 
increase in real interest rates and narrowing of credit spreads over 
the period, partly offset by our scheduled contributions.
The BT Pension Scheme (BTPS) hedges inflation and interest rate 
risk with reference to the funding deficit, which has resulted in the 
BTPS being over hedged on an IAS 19 measure. In addition, the 
IAS 19 liabilities are set by reference to corporate bond yields. 
The increase in real yields and narrowing of credit spreads over 
the period have therefore led to an increase in the IAS 19 deficit, 
partly offset by scheduled contributions of £0.8bn. The impact of 
these factors is different for the funding valuation deficit.
The 2023 BTPS funding valuation included a future funding 
commitment for BT to provide additional deficit contributions 
should the funding deficit be more than £1bn behind plan at two 
consecutive semi-annual assessment dates. At the 31 December 
2023 assessment date, the funding position was within this limit.
Further details of the BTPS triennial review can be found in note 
19 – Retirement benefit plans on page 185 and in the Section 172 
statement on page 93.
The movements in the deficit for the group’s defined benefit plans 
are shown below:
Movements in the deficit for BT Group’s defined benefit plans
(£bn)
BT Group plc Annual Report 2024
54
Strategic report
Group performance continued
0.6
1.0
2.5
0.2
(0.9)
3.1
(1.2)
0.5
3.8

Net debtb and financial debt
Net financial debt (which excludes lease liabilities) at 31 March 
2024 was £14.5bn (31 March 2023: £13.5bn), increasing mainly 
due to our scheduled pension scheme contributions of £0.8bn.
Net debtb (which includes lease liabilities) was £19.5bn (31 March 
2023: £18.9bn). The difference to the movement in net financial 
debt reflects lease movements.
BT Group holds cash and current investment balances of £2.8bn; 
the current portion of loans and other borrowings is £1.4bn.
Our £2.1bn revolving credit facility, which matures in March 2027, 
remains undrawn at 31 March 2024.
We remain committed to our credit rating target of BBB+ 
and minimum rating of BBB.
During FY24 all of the major agencies confirmed their ratings 
at BBB or equivalent with stable outlook
Contractual obligations and commitments
Our principal undiscounted contractual financial obligations 
as at 31 March 2024 are as follows: 
– Loans and other borrowings of £17,728m (FY23: £17,442m)
– Lease liabilities of £5,591m (FY23: £6,031m) 
– Pension deficit obligations of £5,942m (FY23: £6,755m)
– Capital commitments of £1,049m (FY23: £1,480m) 
– Device purchase commitments of £171m (FY23: £217m).
We have unused committed borrowing facilities totalling £2.1bn. 
We expect that these resources, combined with the future cash 
we generate, will allow us to settle our obligations as they fall due.
Notes 15, 19, 26 and 31 to the consolidated financial statements 
give further information on these items.
Debt maturity
The graph below shows the maturity profile of our term debt. 
Currency denominated balances are translated to sterling at 
swapped rates where hedged.
Note 26 to the consolidated financial statements gives more 
information on our debt arrangements.
Debt maturity profile
(£m)
FY25
740
FY26
566
2,012
FY27
372
FY28
 
1,611 
FY29
 
1,293 
548
447
FY30
777
673
FY31
 
1,604 
FY32
498
372
716
FY33
 
1,155 
FY34
719
FY35
FY36
FY37
FY38
498
FY39
FY40
719
FY41
442
FY42
FY43
741
64
FY44
FY45
FY46
FY47
FY48
247
FY49
FY50
389
 £ debt
 € swapped to £
 $ debt swapped to £
 JPY swapped to £
Share buyback
We spent £133m (FY23: £138m) on our share buyback 
programme. We received proceeds of £57m (FY23: £5m) from 
colleagues exercising their share options.
BT Group plc Annual Report 2024
55
Strategic report
a   Primarily reflects the impact on the liabilities of actual inflation being higher than assumed at the prior reporting date, which has been broadly offset by increases to inflation-linked 
assets from higher inflation.
b   Loans and other borrowings and lease liabilities (both current and non-current), less current asset investments and cash and cash equivalents, including items which have been classified 
as held for sale on the balance sheet. Currency denominated balances within net debt are translated to sterling at swapped rates where hedged. Fair value adjustments and accrued 
interest applied to reflect the effective interest method are removed. Amounts due to joint ventures held within loans and borrowings are also excluded. Please refer to note 26 of the 
consolidated financial statements for reconciliation from nearest IFRS measure.

Our customer-facing units
BT Group consists of customer-facing units (CFUs), technology 
units, and corporate units, as described on page 11. 
We have three CFUs – Consumer, Business and Openreach. 
Business started reporting as a combined unit from the start of the 
financial year. 
The comparative results for the year ended 31 March 2023 have 
been re-presented for the impact of the creation of our Business 
CFU and for changes to the methodology we use to allocate 
shared central costs. See note 1 to the consolidated financial 
statements for more information, and note 32 for a bridge to 
previously presented financial information.
Consumer 
Adjusteda revenue
Adjusteda operating profit
£9,833m
1% £934m
8%
2024
2023
Change
Year ended 31 March
£m
£m
£m
%
Adjusteda revenue
 
9,833  
9,737  
96 
 1 
Adjusteda operating 
costs
 
7,161  
7,268  
(107) 
 (1) 
Adjustedb EBITDA
 
2,672  
2,469  
203 
 8 
Depreciation & 
amortisationa
 
1,738  
1,603  
135 
 8 
Adjusteda operating 
profit
 
934  
866  
68 
 8 
Capital expenditure
 
1,175  
1,221  
(46) 
 (4) 
Normalised free cash 
flowc
 
1,023  
963  
60 
 6 
Pro formad adjusted 
revenue
 
9,833  
9,499  
334 
 4 
Pro formad adjusted 
EBITDA
 
2,672  
2,540  
132 
 5 
Pro formad adjusted 
capital expenditure
 
1,175  
1,221  
(46) 
 (4) 
Pro formad adjusted 
normalised free cash 
flow
 
1,023  
1,086  
(63) 
 (6) 
Adjusteda revenue growth of 4% on a pro formad basis was driven by 
service revenue growth from the annual contractual price rise, increased 
roaming and increased FTTP connections. This was partially offset by a 
decline in voice revenues and continued handset to SIM-only migration. 
Adjusteda revenue was up 1% as per above offset by the BT Sport 
disposal in the prior year.
Adjustedb EBITDA growth of 5% on a pro formad basis with the growth in 
service revenue offset by higher input costs and prior year one-off items. 
Adjustedb EBITDA was up 8% due to revenue growth and rights and 
production cost savings from the BT Sport disposal.
Depreciation and amortisationa was up, driven by higher mobile network, 
digital and customer equipment investment.
Capital expenditure was down due to lower digital spend.
Normalised free cash flowc was down on a pro formad adjusted basis, 
with £(506)m from lower utilisation of a supply chain financing 
programme partly offset by £305m from the sale of cash flows of 
contract assets relating to mobile handsets along with higher EBITDA 
and lower capital expenditure.
ARPU growth was strong in FY24. Broadband ARPU of £41.2 was up 
5% year-on-year and postpaid mobile ARPU of £19.4 was up 9% 
year-on-year.
Churn remains low despite competitive markets, with broadband and 
postpaid mobile churn both 1.1%.
BT Group plc Annual Report 2024
56
Strategic report
Group performance continued

Business
Adjusteda revenue
Adjusteda operating profit
£8,128m
(2)% £646m
(28)%
2024
2023
Change
Year ended 31 March
£m
£m
£m
%
Adjusteda revenue
8,128
8,258  
(130) 
 (2) 
Adjusteda operating 
costs
6,498
6,313  
185 
 3 
Adjustedb EBITDA
1,630
1,945  
(315) 
 (16) 
Depreciation & 
amortisationa
984
1,047  
(63) 
 (6) 
Adjusteda operating 
profit
646
898  
(252) 
 (28) 
Capital expenditure
775
886  
(111) 
 (13) 
Normalised free cash 
flowc
431
648  
(217) 
 (33) 
Adjusteda revenue decline of 2% was driven by declines in legacy 
products and managed contracts, adverse foreign exchange, a one-off 
revenue adjustment and prior year one-offs. This was partially offset by 
continued trading momentum further enhanced by inflation-linked 
price rises in Small and Medium Business (SMB), and growth in Security. 
Adjustedb EBITDA decline of 16% was due to higher input costs driven 
by inflation, the flow through of high margin legacy declines and one-
offs. This was partially offset by the ongoing benefit of cost 
transformation and revenue growth in SMB and Security.
Depreciation and amortisationa decline was driven primarily by the 
timing of asset recognition in the prior year.
Capital expenditure was down due to higher customer project spend in 
the prior year.
Normalised free cash flowc declined mainly due to lower adjustedb 
EBITDA and the timing of working capital, partially offset by lower 
capital expenditure.
Retail order intake was £6.2bn on a 12-month rolling basis, down 1%.
Openreach
Adjusteda revenue
Adjusteda operating profit
£6,077m
7% £1,775m
15%
2024
2023
Change
Year ended 31 March
£m
£m
£m
%
Adjusteda revenue
 
6,077  
5,675  
402 
 7 
Adjusteda operating 
costs
 
2,250  
2,165  
85 
 4 
Adjustedb EBITDA
 
3,827  
3,510  
317 
 9 
Depreciation & 
amortisationa
 
2,052  
1,965  
87 
 4 
Adjusteda operating 
profit
 
1,775  
1,545  
230 
 15 
Capital expenditure
 
2,845  
2,847  
(2) 
 — 
Normalised free cash 
flowc
 
590  
219  
371 
 169 
Adjusteda revenue growth of 7% was driven by CPI linked price 
increases, growth in FTTP broadband base and growth in the Ethernet 
base. This was partially offset by declines in the base of broadband and 
voice only lines. The fibre-enabled base grew; offset by declines in the 
copper base.
Adjustedb EBITDA growth of 9% was driven by revenue flow through, 
improved cost transformation including lower staff numbers, partially 
offset by pay inflation, higher energy costs and higher FTTP provision 
volumes.
Depreciation and amortisationa was up driven by increased 
network build.
Capital expenditure was broadly flat with lower FTTP build unit cost 
partially offset by higher FTTP build and provision volumes.
Normalised free cash flowc increase was driven by higher adjustedb 
EBITDA and copper forward sales, partially offset by the timing of 
working capital. 
Openreach broadband ARPU grew by 10% year-on-year due to price 
rises and increased volumes of FTTP.
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a   Adjusted measures exclude specific items, as explained on page 231.
b   Adjusted EBITDA is defined as the group profit or loss before specific items, net finance expense, taxation, depreciation and amortisation and share of post tax profits or losses of 
associates and joint ventures, as explained on page 232. 
c   Normalised free cash flow as defined on page 232.
d   On 1 September 2022 BT Group and Warner Bros. Discovery announced completion of their transaction to form a 50:50 joint venture (JV) combining the assets of BT Sport and 
Eurosport UK. Financial information stated as pro forma is unaudited and is presented to estimate the impact on the group as if trading in relation to BT Sport had been equity accounted 
for in previous periods, akin to the JV being in place historically. Please refer to Additional Information on page 233 for a bridge between financial information on a reported basis and a 
Sports JV pro forma basis, which shows a decrease of £238m to adjusted revenue, an increase of £71m to adjusted EBITDA and an increase of £123m to normalised free cash flow.

Building networks for the future
Openreach continue to build full fibre at 
pace – creating the next generation of UK 
telecommunications. Ofcom continue to 
monitor these activities as they start work 
on reviewing the regulatory framework 
for 2026-31. 
We believe the current approach is 
working well. It’s delivering a competitive 
market and good outcomes for customers. 
In May 2023 Ofcom approved our 
Equinox 2 pricing offer. The next stage 
of regulation must consider how to 
achieve the full benefits of fibre 
investment through closing the old, 
copper networks it replaces.
Our more regional focus to rolling out 
Digital Voice services is helping us work 
closer with customers to support them 
with this switch. A successful rollout has to 
work for everyone – as shown by industry’s 
recent commitments on telecare and 
vulnerable customers.
Orders for broadband Universal Service 
are falling as we connect more eligible 
homes. The Government is currently 
consulting on how to serve ‘very hard to 
reach’ customers as well as the overall 
future of Universal Service. 
We recognise Universal Service is a vital 
safety net for some customers. But we 
think its scope and detail isn’t always 
proportionate to the number of homes 
it applies to.
The continued transformation of UK 
networks means increased scrutiny from 
Government and Ofcom on security and 
resilience. We’re continuing to work with 
all parties to apply the 2018 Telecoms 
Security Act and remove high-risk vendors 
from our core network. 
On 25 June 2023 we had a technical fault 
with the 999 service and there was a short 
time when calls couldn’t get through. We 
were – and still are – sincerely sorry for the 
distress this caused and are working 
closely with the ongoing investigation.
We’re proud of our networks’ reliability. 
We welcome the chance to work with 
Ofcom as they consider resilience needs 
for the future. It’s important to our 
customers that we keep providing very 
reliable services at affordable prices.
Pricing and competing fairly
In December 2023 Ofcom closed their 
enforcement programme into in-contract 
price variation terms, with no action taken 
on us. But recent inflation rises have raised 
concerns over the ‘CPI+’ pricing models 
our industry uses. Ofcom feel this can be 
confusing for customers. We’ve listened 
and are introducing a new consumer 
pricing model, switching from % figures 
and CPI to a clear and simple ‘pounds 
and pence’ view.
Work on implementing one-touch 
switching continues across the industry. 
This will make it easier for customers to 
change providers. 
We always try to look after customers who 
have difficulty paying for services. We’ll 
continue providing affordable broadband 
and EE Mobile Basics products to eligible 
customers – and support vulnerable 
customers through careful judgements 
on debt and disconnection. We still 
have more customers on subsidised or 
social tariffs than the rest of the 
industry combineda.
We’re proud of our 
networks’ reliability. 
We welcome the chance 
to work with Ofcom as 
they consider resilience 
needs for the future. 
It’s important to our 
customers that we 
keep providing very 
reliable services at 
affordable prices.
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Regulatory update
Today’s regulation is enabling us to build the network of the 
future, while protecting and supporting our customers. We’re 
working with Ofcom and Government on how to effectively 
regulate the market in future.
a   In line with the Policy, 50% of Simon’s annual bonus will be deferred into shares  for three years.

Looking to the future: 
market and regulation
Over the coming months and years, we 
look forward to working with Ofcom and 
Government on some of the wider 
questions about how to regulate our 
network and industry.
We welcomed the conclusion of Ofcom’s 
Net Neutrality Review. It gave new 
guidance on traffic management and using 
network resources efficiently, giving us 
more flexibility in the products and 
services we can offer customers. 
There’s still more to be done – particularly 
on better sharing the cost of developing 
our network to handle significant volumes 
of content.
As Vodafone and Three announce details 
of their proposed merger, we continue 
to watch developments and feed our 
views into the process. It’s important 
the UK mobile market is effective and 
competitive, especially around 
upcoming spectrum auctions.
We support the Department for Business 
and Trade’s work on ‘Smarter regulation’ 
in the energy, water and telecoms sectors. 
In general we feel that our sector is well 
regulated – evidenced by big investment 
and competition over the past few years. 
But there’s always room to improve. We 
support introducing a ‘growth duty’ to 
make sure all regulatory interventions are 
considered (and reviewed) holistically. 
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We provide broadband for 72% of those in 
the UK who take social tariffs.
72%

Reflecting on the year, it’s clear that 
Openreach is doing exactly what we 
set out to do for all our stakeholders. 
Underpinned by government policy and 
regulation, we’re upgrading the UK’s 
broadband infrastructure at record pace. 
Competitors have made progress. 
Market growth and inflation have been 
challenging. Yet Openreach’s 
performance has again been strong.
As the UK’s largest wholesale broadband 
company, we’re continuing to invest in 
Ultrafast Full Fibre technology. From rural 
villages to city centres, we’ve now passed 
more than13.8 million homes and 
businesses. We’re still heading towards 25 
million by the end of 2026 – and we plan to 
keep going, reaching up to 30m by the end 
of the decade.
But we’ve always said that building the 
network isn’t the end goal. We need 
customers to connect to it and get the 
benefits. That’s why I’m really pleased to 
see 4.7m customers already upgraded 
and enjoying our new platform while we 
continue to drive down costs and improve 
the service we give them. 
Delivering for our customers
People are spending more time than ever 
online, and what we deliver is important 
to them.
We have a clear focus: delivering great 
service, building full fibre at pace across 
the UK and upgrading customers to our 
best available network. 
Openreach isn’t just meeting the high bar 
Ofcom has set – we’re setting our own, 
even higher, standards. 
Our Net Promoter Score (an assessment 
direct from customers) has improved by 
19.5% to 50.2% over the past year, while 
our Trustpilot score is now ‘Excellent’ at 4.6. 
With fibre fault rates also lower than 
copper, there’s strong momentum in 
improving customer experience, but 
there’s always more to do. 
Building efficiently and pricing 
competitively
We sped up our build rate again this year, 
to a peak of one million homes and 
businesses in the final quarter.
By harnessing innovation and efficiencies 
in our supply chain, we’ve also been driving 
down the cost of reaching each premisesa 
achieving FTTP build costs per home at the 
lower end of the £250 – £350 range.
To that end, the value and quality of our 
product helps us stand out in a competitive 
market. Our Equinox 2 pricing offer has 
now been taken up by all our major 
customers – with the ability to fulfil over 
36,000 orders every week. A brilliant start.
Prioritising our people
Openreach will always be a people 
business, and our investment in ensuring 
our people have the right skills to deliver 
for our customers continues. 
As more customers move to reliable full 
fibre services, we’ll need fewer engineers 
to support them because it’s a more 
dependable platform. To that end, we’ve 
stopped backfilling certain roles when 
people leave or retire and we’re continuing 
to flex our reliance on subcontractors. 
We’re also retraining copper engineers 
with fibre skills and our desk-based 
teams are exploiting new systems and 
AI applications.
We’re also becoming more inclusive 
as we try to better represent the 
communities we serve. 
Our People Networks are growing, 
continuing to create a safe space for 
minority colleagues and challenge us 
on the environment we create for 
all colleagues. 
Acting sustainably and safely
We know our operations affect the 
environment. We’ve distilled our 
sustainability objectives into three 
aims to help us focus. 
We want to lower our carbon footprint, 
use fewer materials and cut waste, and 
make a positive impact on nature. 
We’re progressing well. We’re converting 
our diesel van fleet to electric vehicles – 
with more than 4,100 already on the road. 
And last year we recycled around 4,300 
tons of copper. But there is still a long 
way to go.
Keeping colleagues, partners and the public 
safe is paramount. Almost everyone at 
Openreach has now completed our day-
long ‘Hearts and Minds’ safety programme 
– a massive investment to refocus our 
culture on physical and mental wellbeing. 
We’re also keeping up our work to move 
network assets away from high voltage 
poles, with the project now completed.
Digital transformation 
As BT Group’s deadline for retiring the 
analogue PSTN approaches, we’ve 
become more aware that wholesale 
customers need support and encouragement 
to switch to Digital Voice services. 
We welcome new industry commitments 
on better protecting vulnerable customers 
and will carry on facilitating upgrades. 
As more people move to full fibre we’ll also 
need fewer exchanges across the UK. 
Exiting these buildings is challenging and 
will take many years. But it will help the 
industry be more cost and energy efficient 
so we’re working closely with CPs to plan 
and manage this change.
An environment set for success 
Finally, it’s worth reflecting on the success 
of the sector.
A combination of UK Government tax 
policy and Ofcom’s Wholesale Fixed 
Telecoms Market Review (WFTMR) have 
driven investment and fierce competition 
across our industry. 
An alt-net community – with access to our 
ducts and poles – has added to an already 
strong retail market. This is leading to better 
outcomes and giving customers an even 
wider choice of offers, products and services. 
The framework is working. But the business 
case for full fibre investments still stretches 
to nearly 20 years, so what everyone needs 
is a continued period of regulatory and 
Government policy stability.
Meanwhile, technology change keeps getting 
faster and there’ll be increasing challenges to 
reach more rural, isolated communities. Our 
focus will be on upgrading as many customers 
as possible. And – with our unrivalled track 
record in rural connectivity – we’re looking 
forward to playing our part in the 
Government’s Project Gigabit programme.
We’re doing well, and that wouldn’t be 
possible without our people. So I want to 
thank all of our colleagues who’ve worked 
tirelessly to maintain that momentum 
this year.
Mike McTighe
Chair, Openreach
15 May 2024
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A message from the Chair of Openreach
a   For our commercial build programme only. Excludes new sites.

Our risk management framework
Risk management is integral to our 
business and to achieving our strategic 
priorities. Our risk management framework 
makes sure that we manage risks in a smart 
and structured way. It helps us reach our 
goals, deliver our strategy, support our 
business model and protect our assets – 
while leading the way to a bright, 
sustainable future.
We align risk management activities with 
our strategic framework, business planning 
and performance management. This helps 
integrate risk thinking into key decision-
making areas. It also makes sure we share 
information in a joined-up way for the 
biggest impact.
How we manage risks
We divide our risk landscape into 16 Group 
Risk Categories (GRCs) of enduring risks – 
like People and Cyber Security – that will 
not change significantly over time and can 
be managed consistently across the 
organisation. 
For each GRC we set our risk appetite. 
That is how much risk we’re willing to take, 
underpinned by metrics with upper and 
lower limits which set our tolerance. We 
manage enduring risks within each GRC 
through clear policies complemented by 
standards and a group-wide Key Control 
Framework. 
We use a ‘three lines of defence’ model 
to define clear roles and responsibilities, 
coordinate assurance activities and give 
confidence to stakeholders that we’re 
managing risks effectively.
We’re also aware of – and act on – current, 
specific risks and uncertainties which are 
important at a point in time and dynamic 
in nature. We categorise these as: 
1. Point risks: Risks we can’t manage 
effectively through the key control 
framework, or that are materially 
significant to us and need to be 
managed separately.
2. Emerging risks: Uncertainties which 
might be materially significant but 
whose causes and impacts we can’t 
presently fully define.
We align these types of risks to a GRC 
based on their causes and consequences. 
For point risks, we assess their potential 
impacts and likelihood, assign management 
ownership and decide how to best manage 
the risks. We keep monitoring risks and 
action plans – making changes like 
agreeing new actions as needed. 
We also assess emerging risks but with 
different criteria. We look at potential 
impacts, level of preparedness and the 
time horizon. Reflecting that emerging 
risks are uncertain, we also consider those 
that may occur in the longer term (more 
than three years). 
Some emerging risks are more ambiguous 
and broader than others, needing 
coordinated, cross-group assessment and 
action. We use our emerging risk hubs 
when considering these risks. They bring 
together cross-functional representatives 
to share intelligence, identify potential 
trade-offs and agree actions.
Our risk governance and culture
Ultimately, the Board has overall 
responsibility for risk management. On 
the Board’s behalf, the Audit and Risk 
Committee provides oversight of and 
monitors the effectiveness of our risk 
management and internal controls 
systems.
Twice a year, the Board gets a summary 
of how we’re managing key risks across 
all GRCs. The Audit and Risk Committee 
also holds discussions with Executive 
Committee members to conduct deep 
dives into specific GRCs across the year. 
Each GRC has an Executive Committee 
sponsor. They set our risk appetite, how we 
measure our exposure to that risk, and how 
we manage it within our target tolerance. 
This provides accountability, ‘tone from 
the top’ and joined-up risk thinking.
Each unit leadership team regularly 
reviews, discusses, prioritises and acts 
on risks, aligned to GRCs. This drives 
conversations about risk management 
across every part of the organisation 
leading to risk-informed decisions and 
better business outcomes. 
We have oversight bodies in place at both 
unit and group level – where key risk 
information gets reported regularly. 
Our leaders promote a mindset of being 
smart with risk when making decisions. Our 
code sets expected behaviours for all our 
colleagues. Ongoing training and formally 
defined risk management roles also help 
weave risk awareness into our culture.
Our risk management tool, ARTEMIS, 
helps us consistently apply our risk, control 
and assurance frameworks across BT 
Group. It links risks with the relevant 
controls and assurance outcomes. It also 
simplifies and standardises reporting. This 
helps us to make sure we’re managing risks 
in a joined-up and consistent way. 
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Risk management
Risk management taken seriously, and done simply and consistently, 
helps us make the best decisions for our colleagues, customers, 
shareholders and wider stakeholders in the face of uncertainty. 
It is fundamental to our strategy and performance. 
Our leaders promote a 
mindset of being smart 
with risk when making 
decisions. Our code sets 
expected behaviours 
for all our colleagues. 
Ongoing training and 
formally defined risk 
management roles also 
help weave risk awareness 
into our culture. 

Enhancing our risk management 
framework
We keep strengthening how we apply our 
risk management framework, in step with 
our changing business and risk landscape. 
This year we launched two new training 
modules covering the basics of our 
framework and the behaviours we expect 
from our leaders. We rolled them out 
across our senior leadership team and 
everyone involved in making our 
framework a success. The training helped 
everyone understand the expectations 
and benefits risk management brings to 
BT Group. 
We continue to develop our key control 
framework, and this year was about 
embedding it consistently across the units 
with our leaders taking active ownership 
for the controls in their area, making it 
core to operations, decision making 
and mindset. 
We focused on two things: 
1. Identifying and prioritising areas that 
needed strengthening.
2. Reviewing our overall approach to 
how we assess control effectiveness, 
including second line assurance 
activities across the GRCs to make sure 
they are sufficient and proportionate 
to the risks and their impact. 
An ever-changing risk landscape
We operate in a challenging external 
environment. Economic uncertainty, 
adverse market conditions, growing 
geopolitical tensions and more regulatory 
scrutiny are all impacting our risk exposure 
– meaning more focus and management. 
Below, we discuss some of the key 
changes to our risk landscape during 
the past 12 months.
Data and AI
AI and data use are growing fast and 
changing the way businesses operate. 
The regulatory landscape, technological 
advancements and public awareness are 
quickly evolving in step – with hard to 
predict outcomes. Generative AI has the 
potential to change the way we serve our 
customers and how our workplace looks. 
Whilst there is a lot of opportunity, it also 
means we need to carefully manage risks 
relating to procuring, developing, using 
and selling AI solutions.
Managing AI risks cuts across many of our 
GRCs. For example, we need to ensure we 
invest in the right AI skills and capabilities. 
We must also apply responsible 
technology principles that maintain 
our stakeholders’ trust.
The growing use of AI also means relying 
even more on data, which creates new 
challenges and risks. Given the synergies 
between the two, we’ve expanded our 
Data GRC to include both data and AI. 
This will let us use our risk management 
framework to make sure we have the right 
risk appetite, standards and key controls 
for increasingly material AI risks. 
Market dynamics 
The market is filled with challenges around 
the macroeconomic environment, 
competitor movements, regulatory 
pressures and technological advances. 
We’re managing risks related to increasing 
competition in the broadband and mobile 
markets, while also navigating retail pricing 
pressures and making sure we treat all our 
customers fairly. 
We’re also closely monitoring and acting 
on the risks of disintermediation by 
hyperscalers as they introduce alternative 
technology solutions. 
The geopolitical risk landscape 
Geopolitical tensions and wars across the 
world – like in the South China Sea or 
Ukraine – create risks to businesses like 
ours. This year the conflict in the Middle 
East region has amplified a wide range of 
potential impacts, including disruption to 
suppliers, higher energy costs and 
increased cyber security threats. 
Geopolitical risks can change fast and 
affect various parts of our organisation. 
We use our emerging risk hub to bring 
together the right people to make action 
plans as these risks evolve.
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Risk management continued
AI
Generative AI has the potential to change the way we serve 
our customers and how our workplace looks. 

The risks set out in the following pages align with our enduring Group 
Risk Categories (GRCs). Each GRC contains enduring risks, as well as 
examples of the current point and emerging risks. We also include the 
scenarios we’ve used for our viability analyses for each GRC. 
Strategic
Strategy, technology 
and competition
Sponsor: Chief Financial Officer
What this category covers
To deliver value to our stakeholders and achieve our strategic 
objectives, we must carefully manage risks around economic 
uncertainty, intensifying competition and rapidly changing 
customer and technology trends. If we adopt the wrong strategy, 
fail to incorporate our strategy into our business plans or don’t 
effectively implement it, we could become less competitive and 
hinder the creation of long-term sustainable value.
Our risk appetite 
Our risk appetite sets our tolerance for managing ‘internal’ risks 
associated with this category. We measure and track this through 
specific metrics. We also qualitatively assess the clarity of our 
strategy, robustness of our strategic analysis and whether our 
business and financial plans align with our strategy. Doing this 
helps us make robust strategic choices and effectively implement 
them – to stay competitive and grow value for our stakeholders.
Examples of dynamic risks 
Point risks:
– Macroeconomic environment factors like high inflation, high 
interest rates and reduced customer confidence may lower 
demand, increase customers’ price sensitivity and drive up costs.
– Intensifying competition in retail and wholesale markets could 
increase churn and affect our market share.
– Disintermediation by hyperscalers could result in loss of market 
share and weakened customer relationships.
– Slower than planned progress on key programmes could limit our 
ability to deliver our strategy and growth ambitions.
Emerging risk:
– Failing to harness AI technologies to drive efficiencies and 
generate value could make us less competitive. 
Examples of what we do to manage these risks 
– We research, analyse and monitor economic, customer, 
competitor and technology trends to inform our strategy.
– The Executive Committee and Board regularly review 
performance against our strategic priorities and targets.
– The Executive Committee and Board discuss key strategic topics 
throughout the year.
– BT Investment Sub-Committee considers our investments to 
make sure they are aligned to our strategy.
Scenarios considered in viability analysis
Hyperscalers strategically entering our markets 
through direct initiatives.
Competitive pressures from alternative FTTP 
network providers continue to intensify. 
Stakeholder management
Sponsor: Corporate Affairs Director
What this category covers
Stakeholder management, built on trust, is essential to us 
achieving our ambitions. We engage with stakeholders fairly and 
transparently to maintain strong, sustainable relationships and 
manage reputational risks. We also consider risks around using and 
selling emerging technologies, environment, social and 
governance factors, and customer fairness.
Our risk appetite 
We recognise the importance of strong stakeholder relationships 
and consider them when setting strategy and making decisions. 
We aim to balance our purpose and ambition with commercial 
choices we think are reasonable. At times this creates tensions 
when weighing up options: price rises to sustain investment, the 
markets we operate in, who we buy from and sell to, the way we use 
and develop technology and how we use data.
We want to keep being sector leader on reputation and trust 
among professional opinion formers, and stay in our top quartile 
position on ESG.
Examples of dynamic risks 
Point risks:
– Protecting our customers’ interests while migrating to digital 
products and closing legacy networks.
– Continued geopolitical tensions needing extra focus on 
reputational risks associated with our global operations.
Emerging risks:
– Rapid advances in AI with associated stakeholder scrutiny on 
things like data ethics and reskilling. 
– Climate change, and perceptions of our sector’s role in carbon 
emissions. See our Task Force on Climate-related Financial 
Disclosures (pages 71 to 80).
Examples of what we do to manage these risks
– Our Manifesto (pages 34 to 39) sets out our commitment to 
growth through responsible, inclusive and sustainable 
technology. The Responsible Business Committee provides 
Board-level governance.
– We monitor the media, and track our reputation across our 
main stakeholder groups.
– We engage with stakeholders to build strong relationships. 
See pages 40 to 45 for details.
– We have robust product, services and communication plans 
to improve customer outcomes.
Scenario considered in viability analysis
Potential changes in Government policy affecting our investment 
and commercial ambitions.
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Our principal risks and uncertainties

Financial
Financing
Sponsor: Chief Financial Officer
What this category covers
We rely on the cash we generate as a business. We supplement 
this through capital markets, credit facilities and cash balances 
to finance our operations, pension contributions, dividends and 
debt repayments.
We also focus on defining and executing the right insurance 
strategy.
Our risk appetite
We fund our business based on the performance forecasts 
in our medium-term plans.
We rely on debt capital markets being open to investment grade 
borrowers. We set our minimum credit rating at BBB. We invest 
cash resources to preserve capital, not generate returns.
We have an agreed plan to reduce investment risk in the BT 
Pension Scheme by 2034, and also plan to reduce longevity risk.
Examples of dynamic risks 
Point risk:
– An uncertain macroeconomic or geopolitical environment could 
increase the cost of new long-term debt or trigger contingent 
deficit contributions to the BT Pension Scheme before the 
2026 valuation.
Examples of what we do to manage these risks
– We review our forecasted and actual business performance.
– We have formal treasury risk management processes, Board 
oversight, delegated approvals and lender relationship 
management.
– We review our pension schemes’ funding positions and 
investment performance and agree funding valuations.
Scenarios considered in viability analysis
The BT Pension Scheme deficit worsening as a result of 
macroeconomic development.
UK experiences a significant recession.
Dependence on accelerated tax depreciation to reduce cash 
tax in the short term.
Financial control
Sponsor: Chief Financial Officer
What this category covers
Our financial controls help us to prevent fraud and report 
accurately. If these failed it could result in financial losses or cause 
us to materially misrepresent our financial position.
We might fail to apply the correct accounting principles and 
treatment, or to meet tax compliance. This could result in financial 
misstatement, fines, legal disputes and reputational damage.
Our risk appetite
We want our overall financial control framework to be effective 
so that there’s less-than-remote likelihood of material financial 
misstatement in our reported numbers.
We’ve defined the proportion of our financial controls that we 
aim to be preventative rather than detective, and automated 
rather than manual.
We take a risk-based approach to compliance monitoring – 
combining sample testing and financial data analytics.
Examples of dynamic risks
Point risks:
– Not delivering our transformation programmes could affect 
our control performance, efficiency and effectiveness.
– Complex and legacy systems in the lead to order process in 
Business not consistently delivering expected outcomes.
Emerging risks:
– Rapidly growing ESG reporting requirements.
– Greater responsibility to prevent fraud under the 
Economic Crime and Corporate Transparency act.
– Higher chance of internal and external fraudulent 
behaviour caused by the increased living costs.
Examples of what we do to manage these risks
– We have financial and operational controls for planning and 
budgetary discipline, efficient and accurate reporting, and for 
reducing the risk of fraud, leakage or errors.
– We continually enhance processes, systems and our operating 
model to improve and automate accounting, financial reporting 
and fraud controls.
– We proactively identify, manage, investigate and report 
on potentially fraudulent activities.
– We periodically provide fraud training to colleagues that need it.
– We work with third-party experts to assess and improve our 
readiness to comply with new and evolving legislation.
Scenario considered in viability analysis
A material financial misstatement leading to regulatory fines, 
lawsuits and reputational damage.
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Our principal risks and uncertainties continued

Compliance
Communications regulation
Sponsor: General Counsel, Company Secretary & Director 
Regulatory Affairs
What this category covers
We work with our regulators as they define clear, predictable and 
proportionate regulations to protect customers and society – while 
making sure service providers can compete fairly. We must comply 
with those regulations, maintain trust and strong relationships 
while delivering our vision and sustainable value growth.
Our risk appetite 
We’re committed to adhering to regulations and having a strong 
compliance culture. It’s a fundamental part of connecting for good. 
We make decisions based on regulatory obligations. These include 
protecting our customers and network, while making sure we meet 
key stakeholders’ wider strategic business needs. We focus on 
maintaining long-term predictable and stable regulation.
Examples of dynamic risks 
Point risks:
– Digital voice migration fails to deliver in line with regulatory 
obligations or expectations.
– Additional obligations from the Broadband Universal Service 
Obligation review could increase costs. 
– Complexities delivering the Telecommunications (Security) 
Act 2021 requirements. 
Emerging risk:
– Ofcom’s next Telecoms Access Review could result in less 
certainty on fibre regulation.
Examples of what we do to manage these risks
– We proactively engage with regulators, giving them timely and 
accurate information when required.
– We try to understand our customers’ experiences – for example 
when moving them on to new networks or protecting vulnerable 
customers.
– Our processes help us follow regulations, build trust and enable 
future dialogue with policymakers.
– We continually scan the horizon to identify regulatory changes 
which may impact us, so we can put plans in place to respond.
– Our compliance and assurance programme gives our people 
advice, guidance and training on regulatory requirements and 
tests our regulatory controls. 
Scenario considered in viability analysis
Potential regulatory changes affecting our pricing arrangements. 
Data and AI
Sponsor: Chief Digital and Innovation Officer
What this category covers
We must follow today’s global data regulations while anticipating 
and preparing for tomorrow’s.
Our data and AI strategy aims to create value and enable 
efficiency, while giving us a robust framework for us to comply with 
data and AI governance and regulation. It also includes managing 
risks as we build AI solutions. 
Not following data protection laws or regulations or taking a 
responsible approach to AI could damage our reputation and 
stakeholder trust, harm colleagues, customers or suppliers and/
or lead to litigation, fines and penalties.
Our risk appetite 
We want to protect BT Group, colleagues, customers, partners and 
suppliers from breaches of data protection laws and regulations. 
We also want to harness our data to support and drive our 
objectives and realise opportunities.
We can only achieve these aims with the right data ethics, 
governance, security, protection, responsible technology and 
compliance systems, processes and practices. Achieving our data 
goals may require appropriate interpretation of the varied global 
data protection laws, regulations and standards.
Examples of dynamic risks
Point risks:
– Recent European legislation imposing new data obligations on 
data sharing and re-use.
– Using AI inappropriately could lead to a potential breach in 
AI and/or data regulations and compromise sensitive data.
– New EU cyber security legislation for the telecommunications 
industry may be hard to implement.
Emerging risks:
– The regulatory landscape, technology, and public awareness of 
AI and use of data are rapidly evolving, leading to unpredictable 
outcomes and potential new obligations or reputational impact.
– Heightened concern over harm from data use and publication 
leading to increase in policies to protect consumers. 
Examples of what we do to manage these risks
– We continuously run and improve our data governance programme 
to tackle existing and future data regulatory risks.
– To make sure we follow our own data protection standards we 
review how we use personal data across the business.
– We continue to improve our approach to managing risks around 
AI (see page 62 for more). 
– We horizon-scan for evolving regulations, sector developments 
and new technologies that could affect our data risks, controls 
and processes.
– We provide data protection and handling training and tools to 
help colleagues make more risk-aware day-to-day decisions.
Scenario considered in viability analysis
An AI-related data breach, leading to regulatory investigation, 
enforcement action and reputational damage. 
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Compliance
Legal compliance
Sponsor: General Counsel, Company Secretary & Director 
Regulatory Affairs
What this category covers
Our main focus areas are anti-bribery and corruption, competition 
law, trade sanctions, export controls and corporate governance 
obligations. Other GRCs focus on complying with other areas of 
law. Across all Group Risk Categories we focus on remaining in 
compliance with all substantive laws. 
Our risk appetite 
We want to take advantage of commercial opportunities. So we 
take considered, evidenced, defensible decisions on complying 
with applicable laws. 
We assess risks to help us decide on proposed actions. That means 
looking at the nature of the risk, the cost of compliance, the value 
of the proposed actions and the steps we’d need to take to bring 
them within our risk appetite.
In corporate governance, we determine the risks for a position we 
take based on things like our rules and policies, market practice, 
investor expectations and our stakeholders’ views.
Examples of dynamic risks
Point risks:
– Sales practices that – because of living costs or tricky market 
conditions – could potentially be seen as inappropriate. 
– Failing to effectively manage third-parties, leading to fines or 
reputational damage.
– Evolving regulatory and litigation environment may lead to 
financial and reputational impact.
Emerging risks:
– Increased regulatory burden around corporate governance 
and reporting.
– New laws, changes to existing ones, or trade sanctions 
responding to geopolitical dynamics or concerns in a particular 
area of law.
Examples of what we do to manage these risks
– Through our Code we foster a culture where colleagues know 
the standards we expect and speak up if something’s not right.
– We regularly assess risks when we give legal or compliance 
advice on strategic projects, new business or commercial 
operations.
– We train colleagues to know where legal and compliance risks 
come from, how to handle them and when to get expert help.
– We carry out assurance on day-to-day operations, regions, 
partners, projects and suppliers. We investigate and fix 
anomalies and share what we learn, where needed.
Scenarios considered in viability analysis
A breach of sanctions or export controls – leading to regulatory 
investigation, fines, debarring from public contracts and 
reputational damage.
We fail to successfully defend the high value claims brought 
against the group.
Financial services
Sponsor: CEO, Consumer
What this category covers
We’re exposed to more financial services regulation as we attract 
new consumer credit and insurance customers. We expect to 
continue scaling-up and broadening these products and services 
in the coming years. That means meeting all applicable Financial 
Conduct Authority (FCA) principles, rules and requirements.
Operating outside FCA rules, requirements or permissions could 
harm customers and lead to fines, loss of FCA permissions, slow 
service take-up and broader reputational damage.
Our risk appetite
We aim to minimise regulatory risk in two ways. First, by building 
operational capabilities that help us develop our financial services 
activities compliantly. Second, by maintaining a trusted 
relationship with the FCA.
We monitor a range of conduct risk metrics. We focus on meeting 
Consumer Duty outcomes including compliance monitoring, 
complaints data and customers in collections. These are early 
warning indicators of potential customer harm which we can 
act on.
Examples of dynamic risks 
Point risks:
– Failing to get extra FCA permissions in time to support a 
planned entry into a new market.
– Failing to meet the additional requirements of Insurance 
Regulatory Framework could result in revenue loss and 
regulatory fines.
– Challenges complying with the Payment Services Directive 
regulation because of potential delays in us addressing Electronic 
Communications Exclusion cap breaches.
Emerging risk:
– There might be a mismatch between our business strategy 
and additional FCA regulatory permissions. 
Examples of what we do to manage these risks
– We scan the horizon, interpret new regulations and regularly 
communicate with the regulator.
– We run mandatory training on FCA regulations, aligned to 
job roles.
– We check our financial services products and promotions are 
compliant before we launch them, and every year afterward. 
– We have processes in place to make sure customers get the 
right outcomes. 
– Our governance framework provides clear responsibility, 
accountability and reporting.
Scenario considered in viability analysis
Failing to get additional FCA permissions may result in adverse 
impact on product rollout and projected revenues.
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Our principal risks and uncertainties continued

Operational
Operational resilience
Sponsor: Chief Security and Networks Officer
What this category covers
We want to deliver best-in-class performance across our fixed and 
mobile networks and IT. That means being operationally resilient 
and managing any risk that could disrupt our services. 
Service disruptions could be caused by things like bad weather, 
accidental or deliberate damage to our assets.
Some service disruptions might depend on suppliers’ and partners’ 
reliability – making it important to pick the right ones.
Our risk appetite 
We want customers to get market-leading services, underpinned 
by best-in-class network performance. To achieve that we must 
prioritise resources to give the best possible service and customer 
experience, while aligning with our strategy.
We aim to deliver exceptional performance for Critical National 
Infrastructure, high volume (FTTC/4G) and strategic (FTTP/5G) 
products whilst maintaining acceptable performance for legacy 
services.
Examples of dynamic risks 
Point risks:
– Power cuts, caused by energy shortages, might lead to service 
disruptions.
– Increasing flood risk at non-protected sites could disrupt 
services.
– Weak contracts or badly managed third-party relationships 
might lead to gaps in support arrangements and extended 
fix times.
Emerging risk:
– More frequent extreme weather events due to climate change 
could impact our business operations.
Examples of what we do to manage these risks
– We have standardised processes to keep our assets resilient 
across the asset lifecycle.
– We respond quickly to incidents. We reduce their impact 
through geographically dispersed emergency response teams 
and give customers regular updates. 
– We have comprehensive testing and change management 
processes.
– We do regular business impact assessments that feed into 
tested, up-to-date business continuity and restoration plans.
– We make sure our operational estate has the right levels of 
physical security controls in place to keep our services running.
Scenario considered in viability analysis
Crisis in the energy sector leading to winter power shortages.
Cyber security
Sponsor: Chief Security and Networks Officer
What this category covers
Our aim is to protect BT Group, colleagues and customers from 
harm and financial loss from cyber security events.
We run critical national infrastructure. So a cyber attack – from 
an external or internal threat or a third party – could disrupt both 
customers and the country, and compromise data.
A poorly managed cyber security event might cost us money, 
damage our reputation and impact our market share. The 
regulator might also impose fines or penalties.
Our risk appetite 
Cyber risk is inherent to our business, and we could suffer 
significant reputational damage from a major cyber event. But 
we acknowledge that we can’t eradicate all cyber risks. 
Cyber security events could be deliberate or accidental, coming 
from inside or outside the group. So we adapt our security position 
and controls accordingly to detect and respond to evolving 
threats.
We prioritise protecting our critical systems and networks, and 
the data and information they contain. 
Examples of dynamic risks
Point risks:
– State-sponsored cyber attacks could target critical national 
infrastructure and lead to service disruption, data loss, 
regulatory action and reputational damage. 
– Being exposed to suppliers with security vulnerabilities might 
lead to data loss, interrupted services or reputational damage.
– Faster organisational change could create conditions where 
people didn’t follow our policies, leading to a cyber security 
incident.
Emerging risks:
– AI and machine learning create opportunities, but they could 
also be weaponised as security threats.
– Quantum technologies could present a threat to how we protect 
sensitive digital information.
Examples of what we do to manage these risks
– We have security standards, tools and processes in place to 
protect our applications, systems and networks.
– We monitor external threats and gather intelligence on evolving 
cyber techniques, tactics and capabilities.
– So we can quickly detect, assess and respond to cyber risks we 
keep a vigilant security stance.
– We run communications, engagement and training for our 
colleagues.
– We continue to invest in our cyber defences and security tools, 
shifting to automation where appropriate.
Scenario considered in viability analysis
We fall victim to a widely publicised cyber attack. It leads to loss 
of customer data, compensation claims and enduring 
reputational damage.
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Operational
People
Sponsor: Chief Human Resources Officer
What this category covers
Our people strategy is to enable a culture where every colleague 
can be their best and help achieve our ambitions.
This means we must manage risk around our organisational 
structure, skills and capabilities, engagement, culture, wellbeing 
and diversity.
Our risk appetite
Our highest priority is making sure colleagues can work and perform at 
their best. We’ll seek to avoid risks that could compromise key 
business priorities, and minimise any that can’t be avoided to as low as 
reasonably practicable. We avoid risks that could lead us to not 
complying with applicable employment legislation.
A relatively small number of roles have a disproportionate effect 
on our success. For those, we have a much lower risk tolerance of 
not having the right capabilities.
To deliver our transformation and achieve our ambitions, we’re 
prepared to take carefully managed short-term employee 
relations risks.
Examples of dynamic risks 
Point risks:
– Changes to our strategy, technology or business model could 
affect what skills we need. Combined with tightened talent 
markets and potentially higher attrition, that could create skills 
gaps.
– Failing to drive an inclusive culture might affect our ability to 
achieve our targets, and subsequently affect business results.
– Failing to make the organisational and cultural changes we need 
to drive long-term success.
Emerging risk:
– Changes in working patterns, or increased financial uncertainty, 
could have a negative effect on colleagues’ mental health.
Examples of what we do to manage these risks
– We have consistent performance management review 
processes and goals – shared through clear organisational 
structures, roles and job descriptions.
– We continually assess skills and capabilities and invest in group-
wide workforce and talent planning. 
– We provide training and development opportunities for specific 
roles, as well as for the future skills we need. 
– Our Inclusion, Equity and Diversity strategy raises awareness, 
addresses bias and promotes our People Networks and support 
(more on pages 24 and 30 to 33).
– We monitor and try to improve employee engagement and 
maintain close relationships with formal representative groups 
and unions.
– We offer fair, competitive and sustainable remuneration to 
promote smart risk taking, boost engagement and retention and 
align colleagues’ and shareholders’ interests.
Scenario considered in viability analysis
A widespread lack of availability of frontline colleagues affecting 
service delivery and leading to poor customer experience and 
reputational harm.
Health, safety and environment
Sponsor: Chief Security and Networks Officer
What this category covers
We have diverse working environments in various locations, some 
of which pose a health or safety risk. We’re committed to ensuring 
the health, safety and wellbeing of our colleagues, contractors, 
suppliers, customers, visitors and members of the public. 
We are committed to protecting the environment and building 
a sustainable future, with effective environment and energy 
management – and particular focus on reducing our carbon 
emissions. 
Our risk appetite
Health, Safety and Environment (HSE) is a key priority for the 
business and is the foundation on which we operate. Our strategy 
is to maintain effective HSE risk management to make sure our 
employees (and others who are affected by our undertaking) and 
the environment are properly protected. 
We apply proactive risk management to identify, control and 
mitigate significant risks across the business to a level deemed 
as low as reasonably practicable.
We consider legal, regulatory and other requirements as the 
minimum obligation. We want to go beyond that – aiming for 
zero avoidable harm and the prevention of pollution. 
Examples of dynamic risks 
Point risks:
– Heightened risks from the additional civil and construction work 
to support the full fibre rollout including harm to colleagues, 
increased regulatory scrutiny, legal claims and reputational 
damage.
– Failing to ensure effective in-life contractor management, 
which may result in increased risks through sub-optimal 
working practices, and subsequent enforcement action, legal 
claims and reputational damage.
– Failing to effectively manage waste could lead to material 
financial loss and reputational damage.
Examples of what we do to manage these risks
– Our group policy is underpinned by our standards and key 
controls and the HSE framework is reflected in our code.
– We train colleagues and make sure they’re clear on their 
responsibilities and are competent to undertake their activities. 
– We make sure that colleagues and their representatives 
participate in (and are consulted on) HSE matters. 
– We adopt a leadership role with our contractors, helping them 
improve their own HSE performance. 
– We allocate appropriate resources to develop, maintain and 
continually improve our HSE management system. 
Scenario considered in viability analysis
A new pandemic as severe as Covid-19 causes harm to colleagues 
and disrupts service delivery and business operations.
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Our principal risks and uncertainties continued

Major customer contracts
Sponsor: CEO, Businessa
What this category covers
We offer and deliver a diverse mix of major contracts which 
contribute to our business performance and growth.
In a highly competitive and dynamic environment, we seek to win 
and retain major private and public sector contracts. We do that 
while navigating customer relationships and risk in complex 
agreements – delivering highly sensitive, critical or essential 
services globally.
Customer contractual terms can be onerous and challenging to 
meet, which can lead to delays, penalties and disputes. Delivery or 
service failures against obligations and commitments could 
damage our brand and reputation, particularly for critical 
infrastructure contracts or security and data protection services. 
Not managing contract exits, migrations, renewals or disputes 
could erode profit margins and affect future customer 
relationships.
Our risk appetite 
We want a diverse mix of major contracts to help our business 
grow. To do that, we must build our market share, target the right 
customers, make beneficial commercial and legal agreements and 
deliver services successfully.
As markets change, we need to proactively adjust our portfolio of 
services, countries and customers to avoid concentration risk, 
stagnation and legacy dependency.
We know this involves taking on higher risk – for example, complex 
customer agreements with obligations not fully covered by our 
standard portfolio, terms and conditions and/or delivery 
processes. We must manage this risk in the bid process and 
contract lifecycle to minimise the overall impact.
Examples of dynamic risks
Point risks:
– Failing to deliver on bespoke customer data requirements 
could lead to potential breaches, fines and reputational harm.
– New IT infrastructure challenges, skills shortages, scale or 
complexity could stop us delivering our digital portfolio 
transformation.
Emerging risks:
– The changing competitor landscape might affect market 
dynamics and competition.
Examples of what we do to manage these risks
– We have a clear governance framework to assess new business 
opportunities, manage bids and monitor in-life contract risks.
– As part of bids, we check non-standard unfavourable terms and 
conditions and mitigate them where we can.
– Our senior management, and a dedicated team, regularly review 
our contracts.
– We support frontline contract managers with contract and 
obligation management tools.
Scenario considered in viability analysis
A major incident causes reputational damage, leading to us losing 
major public services contracts.
Customers, brand and product
Sponsor: CEO, Consumer a 
What this category covers
We want to give customers standout service, build personal 
and enduring relationships, and take extra care of vulnerable 
customers and customers with differing needs. We aim to keep 
customer satisfaction high as we continue to migrate customers 
from legacy products and services to new ones.
If we didn’t continually improve and personalise our customer 
experience, it could affect customer satisfaction and retention, our 
colleagues’ pride and advocacy, revenues and brand value.
Accurate and competitive pricing is important. We must also 
manage product and service lifecycles, inventory and supply chain, 
and meet our customer obligations and product and service 
standards.
Our risk appetite 
We want to be below the industry average for Ofcom complaints 
and keep improving our customer NPS. We aim to maintain 
customer satisfaction, launch new products and services that 
benefit them and minimise issues. 
We must serve customers through modern, cost-effective 
platforms and minimise the number of them on expensive, old and 
labour-intensive legacy products and services. We also want 
customers to feel we give them personalised service through 
frictionless channels.
Examples of dynamic risks 
Point risks:
– Failing to switch customers (including those who are vulnerable 
or have differing needs) from old to new service platforms could 
interrupt their service, cause customer churn and/or lead to 
regulatory intervention.
– Failing to make sure we have the right current and future skills to 
serve our customers could lead us to not meet customer 
expectations, lose customers or market share and harm our 
reputation.
Emerging risk:
– Customer trust and confidence in future AI solutions.
Examples of what we do to manage these risks
– We keep our promises on the service levels customers should 
expect and we track a range of customer experience 
performance metrics while continuing to improve service.
– We have processes in place to identify and serve vulnerable and 
differing needs customers.
– We have clear and comprehensive brand guidelines.
– We work with suppliers to manage relationships and risks.
– We design new products and services (and pilot them where 
possible) to make sure they benefit customers.
– We have a colleague retention and skills development plan to 
make sure we’re not short on key skills.
Scenario considered in viability analysis
A defect in a customer’s device – leading to a full product recall 
and a significant service disruption. 
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a   Excluding Openreach, which has separate GRC sponsorship and management.

Operational
Supply management
Sponsor: Chief Financial Officer
What this category covers
We have a lot of suppliers. Successfully selecting, bringing on 
board and managing them is essential for us to deliver quality 
products and services.
We must make decisions about suppliers on concentration, 
capability, resilience, security, costs and broader issues that could 
impact our business and reputation.
Our risk appetite
Our appetite guides buying decisions. That includes sole or dual 
sourcing for products or services that support key business aims or 
activities – or where alternative sources aren’t economically viable. 
To get the best commercial rates and operational resilience we 
continuously engage with and challenge key suppliers on pricing, 
without introducing service and/or delivery risks.
Properly managing so many third parties needs effective 
governance. So we have a low appetite for dealing with suppliers 
outside of our defined policies or processes.
We have to make sure third parties don’t expose our brands to 
damage. That means avoiding – or stopping working with – any 
that don’t meet our standards on key areas like human rights.
Examples of dynamic risks
Point risks:
– Increased energy prices, supply shortages and inflation could 
affect cost-cutting targets and future investments.
– Geopolitical tensions (like the Russia-Ukraine war and 
escalations in the Middle East) could disrupt supply chain, 
raise costs and inflation, and increase cyber security threats.
Emerging risks:
– A difficult economic environment could put pressure on smaller 
suppliers.
– Extreme climate conditions might disrupt supply chains.
Examples of what we do to manage these risks
– Our sourcing strategy uses different approaches to managing 
risk by category. That includes standard terms and conditions 
and controls so we can make purchasing decisions efficiently 
and effectively.
– We have comprehensive supplier due diligence, contract 
management, on-boarding processes and are reviewing 
and improving our in-life assessment process.
– We have robust supplier risk management, performance, 
renewal and termination processes.
– We do demand planning and forecasting, stock counts and 
inventory management so we have supplies available.
– We get assurance that the goods and services we buy are made, 
delivered and disposed of responsibly. That includes monitoring 
energy use, labour standards and environmental, social and 
governance impacts.
Scenario considered in viability analysis
Increasing geopolitical tensions lead to supply chain disruptions 
and cost inflation. 
Transformation delivery
Sponsor: Chief Financial Officer
What this category covers
We’re accelerating transformation delivery to build a simpler, 
more efficient and dynamic BT Group.
We’re modernising our IT, automating processes with AI, 
streamlining our product portfolio and migrating to next-
generation strategic networks. All this will deliver significant cost 
efficiencies – while also improving our customers’ and colleagues’ 
digital experiences. 
Failing to manage transformation execution risks could make us 
less efficient and damage our financial performance and customer 
experience.
Our risk appetite 
We’ve defined the risk level we’re willing to tolerate for 
transforming our products, customer journeys and technology. 
We track specific metrics to check we’re achieving genuine, 
sustainable transformation outcomes and not just cutting costs.
Delivering within our risk appetite will give us competitive 
advantage, enable faster delivery, improve customer experience 
and make sure our costs benchmark favourably with peers.
Examples of dynamic risks 
Point risks:
– Failure to manage complex interdependencies to complete the 
migration of customers and close legacy IT and networks.
– The volume and complexity of our transformational activities 
across different parts of the group, combined with day-to-day 
business, could dilute our efforts and stop us reaching our 
sustainable transformation goals. 
Emerging risk:
– Delays in switching customers onto new, strategic products 
could slow or stop us closing our copper network and exchanges.
Examples of what we do to manage these risks
– We review transformation performance at monthly Executive 
Committee meetings – managing dependencies, making 
informed decisions and removing blockers.
– We have strong governance, with senior leaders owning specific 
operational and financial outcomes. Each quarter we assess our 
performance – allocating funding to the programmes delivering 
the most strategic value.
– We invest in digital and data capabilities to cut costs, grow 
revenue and make sure we have the right resources to deliver 
sustainable change effectively.
– We invest in our people strategy to make sure we have the right 
skills and culture needed to deliver transformation.
Scenario considered in viability analysis
We are not able to execute the transformation plans we need 
to deliver savings initiatives.
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Our principal risks and uncertainties continued

We assess and report on how we manage 
the impact of climate-related risks and 
opportunities on the group. We detail 
here how we’re complying with the Task 
Force on Climate-related Financial 
Disclosures (TCFD) recommendations – 
our ‘TCFD disclosure’.
– Under FCA Listing Rule LR 9.8.6(8) as a premium listed 
company we have to explain how we’re complying (or not) 
with the TCFD framework. We also have to comply with 
requirements of the Companies Act 2006, as amended by the 
Companies (Strategic Report) (Climate-related Financial 
Disclosure) Regulations 2022.
– We believe the following climate-related financial disclosures 
are consistent with the TCFD framework and therefore comply 
with Listing Rule 9.8.6(8) and Companies Act requirements – 
summarised in Table 1: TCFD Compliance Summary.
– Where relevant, we’ve accounted for TCFD guidance and the 
Financial Reporting Council’s recent recommendations on 
materiality around governance, strategy, risk management, 
and metrics and targets.
– We’ve integrated climate-related disclosures throughout this 
report. So in some areas we’ve cross-referenced to another 
section with the relevant information.
– The information in this TCFD section has been reviewed to a 
high level of assurance against AccountAbility’s AA1000AS v3 
assurance standard.
In this year’s TCFD disclosure, we’ve:
– updated our scenario analysis by expanding our assessment 
of physical climate risks to our global sites and global suppliers 
and by calculating the financial opportunity from our carbon 
abatement solutions
– disclosed the metrics and targets we use to monitor 
performance on our climate risks and opportunities
– updated our disclosure of our remuneration policy which was 
updated in FY24, describing how we consider our climate 
performance in remuneration.
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Task Force on Climate-related 
Financial Disclosures
We have cut our operational carbon 
emissions intensity by 61% since FY17.
61%

Table 1: TCFD Compliance Summary
TCFD Recommendation
Compliance 
Status
Section reference
Governance
1
Board’s oversight of climate-related risks 
and opportunities
Full
TCFD section: Our climate change governance – Board oversight on 
climate change (page 73)
Corporate governance report: Our governance structure (page 85) 
and climate governance (page 105)
2
Management’s role in assessing and 
managing climate-related risks and 
opportunities
Full
TCFD section: Our climate change governance – Management’s 
roles and responsibilities (page 73)
Corporate governance report: Our governance structure (page 85) 
and climate governance (page 105)
Strategy
3
Climate-related risks and opportunities 
(short, medium, long term)
Full
TCFD section: Climate change strategy – Planning climate risks and 
opportunities across different time horizons, Analysing our strategy 
using climate scenarios (page 74 to 76)
4
Impact of climate-related risks and 
opportunities on the business, strategy, 
and financial planning
Full
TCFD section: Climate change strategy – Embedding climate change 
into our strategy (page 77 to 78)
Strategic report:  Our Manifesto - Sustainable (pages 37 to 39)
5
Resilience of the organisation’s strategy, 
considering different climate-related 
scenarios, including a 2°C or lower 
scenario
Full
TCFD section: Climate change strategy – Analysing our strategy 
using climate scenarios (pages 74 to 78)
Risk management
6
Processes for identifying and assessing 
climate-related risks
Full
TCFD section: How we manage climate risks (page 78)
Strategic report: Risk management framework (pages 61 to 70) and 
climate-related GRCs (pages 63, 67 and 70)
7
Processes for managing climate-related 
risks
Full
TCFD section: How we manage climate risks (page 78)
Strategic report: Risk management framework (pages 61 to 70) and 
climate-related GRCs (pages 63, 67 and 70)
8
Identifying, assessing, and managing 
climate-related risks, and integration into 
overall risk management
Full
TCFD section: How we manage climate risks (page 78)
Strategic report: Risk management framework (pages 61 to 70) and 
climate-related GRCs (pages 63, 67 and 70)
Metrics and targets
9
Metrics to assess climate-related risks and 
opportunities in line with strategy and risk 
management processes
Full
TCFD section: Our climate metrics and targets – Metrics and targets 
to measure and monitor risks and opportunities (page 79)
10 Disclose Scope 1, Scope 2, and, if 
appropriate, Scope 3 GHG emissions, and 
the related risks
Full
TCFD section: Our climate metrics and targets – Our worldwide 
energy use and greenhouse gas emissions (page 80)
Strategic report: ESG Addendum at bt.com/esgaddendum
11 Targets used to manage climate-related 
risks and opportunities, and performance 
against targets
Full
TCFD section: Our climate metrics and targets – Metrics and targets 
to measure and monitor risks and opportunities, Our worldwide 
energy use and greenhouse gas emissions (pages 79 to 80)
Strategic report: Our Manifesto - Sustainable (pages 37 to 39) and 
ESG Addendum at bt.com/esgaddendum
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Task Force on Climate – related Financial Disclosures continued

Our climate change governance
We set out here the internal governance bodies, processes and ways in which we identify and manage 
climate-related risks and opportunities.
Board oversight on climate change
The Board
The Board is responsible for how we identify and manage climate-related risks. Matters reserved to the Board 
include items of big strategic importance – things that directly impact the group’s funding position, reputation, 
integrity or ethical standards.
Responsible Business 
Committee
This Committee oversees our 
climate change strategy, 
programme and goals. It meets 
at least three times a year to 
monitor progress on our long‐
term responsible business goals – 
including climate change. It also 
assesses the sustainability 
underpin relative to our 
Restricted Share Plan, and makes 
recommendations to the 
Remuneration Committee. The 
Chair reports to the Board after 
each meeting. There’s more 
about the Responsible Business 
Committee on page 105.
Audit & Risk 
Committee
This Committee monitors and 
assesses our risk management 
and internal control systems’ 
effectiveness on the Board’s 
behalf. That includes climate 
change risks which span a 
number of different group risk 
categories (GRCs). You can read 
more about this Committee on 
pages 99 to 103 and more about 
our GRCs on pages 63 to 70.
Remuneration 
Committee
This Committee agrees the 
remuneration framework for the 
Chairman, Executive Directors, 
and members of the Executive 
Committee. It also monitors 
remuneration practices and 
policies for the wider workforce. 
In FY24 we updated our 
sustainability-linked 
remuneration. We have a 
sustainability underpin relative 
to our Restricted Share Plan 
for Executive Directors, which 
you can read more about on 
page 106.
Management’s roles and responsibilities
Chief Executive
The Chief Executive is responsible for our environmental policy and performance. That includes climate-related issues. 
The Chief Executive approves our targets – including those on net zero, circular economy and customer carbon avoidance.
Group Health, Safety & Environment Sub-
Committee
Our Group Health, Safety & Environment (GHSE) Sub-
Committee meets quarterly and manages a range of risk 
and compliance issues – including climate change – on 
the Executive Committee’s behalf and reports back 
regularly. It’s chaired by our Chief Security and Networks 
Officer – an Executive Committee member – and made 
up of senior leaders from across the business. The GHSE 
Sub-Committee reports Health, Safety, and 
Environmental performance to the Board monthly, 
including our energy consumption.
Executive Committee
The Executive Committee sets our operational strategy 
on climate change and sustainability. It also monitors 
associated progress, performance and risks – supported 
by our responsible business team. 
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Climate change strategy
Planning climate risks and opportunities across 
different time horizons
We think about climate risks and opportunities over the short, 
medium and long term. Our timeframes consider our risk 
management framework, financial planning processes, external 
legal and regulatory changes and the longer-term nature of 
physical climate changes.
Short-term (0-3 years)
This timeframe considers the chance of events exposing us to 
risk over the next three years, in line with our risk management 
framework. We factor in acute physical risks like flooding and 
higher temperatures into our annual plans. This helps us to adapt 
and reduce the impact on our business or value chain.
Medium-term (3-5 years)
This timeframe aligns to our financial planning process, 
which uses a five-year horizon.
Long-term (5-20+ years)
This timeframe matches our investment timeframes for strategic 
assets like networks that we plan over longer periods – sometimes 
up to 20 years. It also influences our strategy, targets and plans for 
responding to climate change’s bigger risks and transitional 
implications. Our scenario analysis considers risks in 2050 and 
beyond, and our long-term climate targets extend to FY41.
Analysing our strategy using climate scenarios
We use scenario analysis to understand what risks and 
opportunities could affect us in the long term. This year we 
focused on advancing our financial impact modelling, and 
establishing metrics to monitor our progress in managing 
these risks and opportunities.
Our scenario analysis process
We try to identify and assess the risks and opportunities likely to 
have the most material financial impact on our business – like on 
revenues, current and future potential costs, including capital.
We use different scenarios to assess our climate risks and 
opportunities from physical impacts and the move to a low-carbon 
economy. We’ve based our scenarios on the Intergovernmental 
Panel on Climate Change (IPCC)a, Network for Greening the 
Financial System (NGFS) and International Energy Agency (IEA), 
among other sourcesb.
The table below shows the different climate-related scenarios 
we’ve considered to help test our organisational strategy’s 
resilience. Shared Socioeconomic Pathways (SSPs) are IPCC’s 
climate scenarios.
Table 2: BT Group’s Climate Scenarios
Transition scenarios
Physical scenarios
Name
Temperature equivalent 
scenarios (°C warming by 
2100 above preindustrial 
levels)
Description
Name
Temperature equivalent 
scenarios (°C warming by 
2100 above preindustrial 
levels)
Description
Current Policies 
(CP)
3
High emissions
Emissions keep 
rising as no extra 
climate policies are 
implemented from 
today.
SSP5-8.5
4.4
High emissions
Emissions keep rising 
at current rates with 
no policy changes.
Delayed Transition 
(DT)
1.6
Low emissions
Emissions keep 
rising until 2030. 
After 2030, climate 
policies are put in 
place and are scaled 
rapidly to hit net 
zero by 2050.
SSP2-4.5
2.7
Intermediate 
emissions
Emissions peak 
around 2060 and 
then fall.
Net Zero (NZ)
1.5
Low emissions
Climate policies are 
implemented from 
today and become 
more stringent over 
time, allowing 
society to hit net 
zero by 2050.
SSP1-2.6
1.8
Low emissions
Emissions halved by 
2050, achieving net 
zero around 2075.
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a   We derived projections from the World Climate Research Programme’s Coupled Model Intercomparison Project (version 5 and 6/ CMIP5 and 6) and the Coordinated Regional 
Climate Downscaling Experiment. Other data sets include high precision flood data and country-level climate data from the NGFS. 
b   We modelled transition risks and opportunities using data from NGFS phase 4. Carbon prices are derived from equivalent scenarios from the IEA, to represent an explicit carbon tax.

In line with TCFD guidance and requirementsa, we modelled the 
impact on our current strategy and business plan – using current 
decarbonisation plans and the commitments in our medium 
term plan. 
For some transition risks and opportunities, we present the 
financial impacts of different action we could take – to show worst 
and best case scenarios. 
For physical risks, we present the financial impacts for our UK 
and global sites, considering our most critical network building 
assets such as our telephone exchanges and data centres. This 
does not include mobile phone masts, telephone cabinets, or 
cable infrastructure. 
This year, we assessed physical risks in our supply chain, looking at 
28 critical suppliers. We assessed this with country-level climate 
data considering our suppliers’ main country of operation. We 
assessed the impact of more flooding, more intense, longer and 
more frequent heatwaves and extreme weather events. As we 
collect more accurate locations of our suppliers and logistics 
network, we plan to refine this analysis and expand to other 
climate hazards such as drought.
We’ve presented the final outputs in annualised nominal terms. 
We haven’t applied social discount factors to avoid double 
counting with our financial models. We categorised the financial 
effects using our risk management framework, and treated each 
risk and opportunity as mutually exclusive events.
The results of our analysis
We think our strategy is resilient to climate risks and is well 
positioned to capture climate opportunities in the modelled 
scenarios. The tables below summarises our prioritised climate 
risks and opportunities for the different scenarios we considered.
We’ve concluded that climate risks and opportunities don’t have 
a material effect on our FY24 financial statements disclosures. 
As we anticipate that the magnitude of climate risks and 
opportunities will change over time, we’ll closely monitor our 
risks and opportunities and expand the assessment as part of 
continually assessing climate risks. 
In high emissions scenarios (CP and SSP5-8.5), physical risks have 
a greater impact than transition risks, as these are driven by more 
frequent and severe weather, particularly in the longer term. Our 
analysis looks at direct climate change impacts on the most 
material areas of our business. It doesn’t include secondary 
effects – like forced migration or geopolitical tensions – 
resulting from climate change. 
We recognise the very severe consequences this scenario could 
have globally. We’re working to play our part in decarbonising 
our own operations and value chain to help avoid it.
At the same time, we’re making sure we prepare for increasingly 
severe and frequent climate-related hazards. We’re investing in 
flood defences, cooling upgrades and better analytics data to 
make sure that our network is resilient.
Conversely, we expect transition risks to have a greater impact 
under low emissions scenarios (DT and NZ). That’s because 
they’re driven by changes in policy and regulation as well as 
stakeholders’ behaviour (including customers). 
There are also opportunities linked to the low-carbon transition – 
like developing carbon abatement solutions to help customers cut 
emissions, and cutting energy costs through efficiency measures. 
DT scenario trends are similar to NZ – but with the impact on the 
business happening sooner under NZ.
We’re acting to reduce risk across the various climate-related 
scenarios, with an emphasis on long-term resilience.
Table 3: Summary of our physical risks from climate change
Relative impact
Prioritised risk or 
opportunity
Time 
horizonb
Description
Potential financial impacts
2030
2040
2050
More floodingc
Long
More frequent and severe 
flooding, increasing 
damage to BT Group 
infrastructure.
– Higher costs to repair damaged assets.
– Lower revenue from network disruption.
SSP5-8.5
SSP2-4.5
SSP1-2.6
More intense, 
longer and more 
frequent 
heatwaves
Long
Higher temperatures and 
more frequent heatwaves, 
affecting BT Group 
operations and leading to 
increased energy 
consumption for cooling.
– Higher energy costs from extra cooling 
demands for equipment and operations 
during high temperature periods.
– Lower productivity from labour hours lost 
through heat stress.
SSP5-8.5
SSP2-4.5
SSP1-2.6
More intense, 
longer and more 
frequent 
extreme weather 
events
Long
Storms and extreme wind 
damaging assets that then 
need repairing – affecting 
our service, increasing 
maintenance costs and 
reducing revenue.
– Higher costs to repair damaged assets.
– Lower revenue from network disruption.
SSP5-8.5
SSP2-4.5
SSP1-2.6
Supply chain 
disruption from 
physical climate 
risks
Long
More extreme, frequent 
and severe flooding, heat 
and weather events 
disrupting our supply 
chain.
– Pass through costs from suppliers dealing 
with physical hazards.
SSP5-8.5
SSP2-4.5
SSP1-2.6
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a   TCFD: Implementing the Recommendations on the Task Force on Climate-related Financial Disclosures.
b   The time horizon where impact is potentially the greatest.
c    We produced high precision flood data for two epochs: 2030s (2021 to 2040) and 2050s (2041 to 2070) to capture the potential range of flood effects in the future. The results 
presented show the effects of flooding for an average year in each of these epochs. 2040 results are an average of 2030 and 2050 to aid comparison with the other risks and 
opportunities that we’ve explored.

Table 4: Summary of our transition risks and opportunities from the transition to net zero
Relative impact
Transition risk / 
opportunity
Time 
horizon
Description
BT Group scenario
Potential financial impacts
2030
2040
2050
Changing 
customer 
expectations 
and how they 
see us
Long
Risk: Customers have 
rising expectations on 
corporate climate action. 
If we lag behind peers on 
decarbonisation, we could 
lose customers.
Our emissions 
decline slowly, 
following a 
current policies 
scenario
Lower revenue from 
customer churn
CP
DT
NZ
Opportunity: By 
differentiating ourselves as a 
climate change leader and 
hitting our net zero targets, 
our revenues could go up.
We hit our 
net zero targets
Higher revenue 
from our improved 
reputation on 
climate change
CP
DT
NZ
Carbon pricing 
and taxation
Medium Risk: Regulatory and 
governmental policy changes 
could introduce carbon 
pricing and taxation. Carbon 
pricing might hit some 
suppliers hard and early. 
Those suppliers might pass 
on extra costs to us.
Our emissions 
decline slowly, 
following a 
current policies 
scenario
Higher operating 
costs
CP
DT
NZ
We hit our net 
zero targets
CP
DT
NZ
Cost of capital
Long
Risk / opportunity: Our debt 
interest rate might change – 
depending on our net zero 
progress. Long term interest 
rates could also change due 
to climate policy and 
investment. On the equity 
side, shareholders could 
choose to invest or withdraw 
funds depending on our net 
zero progress.
Our emissions 
decline slowly, 
following a 
current policies 
scenario
Higher or lower cost 
of capital
CP
DT
NZ
We hit our net 
zero targets
CP
DT
NZ
Carbon 
abatement 
solutions
Short
Opportunity: There might be 
increased demand for our 
carbon abatement solutions, 
telematics and carbon 
dashboards.
We roll out our 
current plans to 
grow revenue for 
these products
Higher revenue from 
abatement products
CP
DT
NZ
Energy pricing 
and efficiency
Short
Opportunity: Improving our 
networks’ and sites’ energy 
efficiency could lower our 
operating costs (even with 
higher energy prices in the 
scenario).
We roll out our 
current energy 
efficiency plans
Lower operational 
costs
CP
DT
NZ
Relative financial impact key
Risk
Limited
Low
Moderate
High
Very high
Opportunity
Limited
Low
Moderate
High
Very high
Financial impact
< £5m
£5m-£50m
£50m-£250m
£250m-£1bn
>£1bn
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Task Force on Climate – related Financial Disclosures continued

Embedding climate change into 
our strategy
Responding to our main physical risks
Our exposure to physical risks changes over time. Rolling out full 
fibre and closing our legacy networks will mean fewer physical 
network sites. That will cut our exposure to physical climate 
change risks (but does mean more services going through 
fewer operational locations). 
On top of that, full fibre is more ‘passive’ (with no electronics 
between exchanges and connected properties) – further 
mitigating the risk of flooding, or extreme heat or weather 
damaging our equipment.
Our insurance policies cover claims on asset loss and damage 
which also lessens any potential financial impact of climate and 
weather events.
More flooding
In line with our future location strategy, last year we completed 
an analysis of possible flood risks from climate change across 
different climate change scenarios. 
This year we used that analysis to decide where to invest in 
measures to help us minimise – or respond faster to flooding. 
These include installing and upgrading sump pumps and 
bulkheads at our sites. We also updated the site analysis with 
the latest data to keep it accurate and up-to-date.
We’re expanding our climate change flood risk assessments to 
help us make decisions on future strategic locations. This year 
we trialled using drones to survey potential risks around water 
getting into the fabric of our buildings. 
More intense, longer and more frequent heatwaves
In most scenarios from 2030-2050 the UK will see more extreme 
heat days. We have been undertaking a programme of cooling 
upgrades at our core network and mobile sites, which allow them 
to operate effectively in up to 45°C external temperatures. 
This year we’ve invested nearly £3m in these upgrades at our 
larger core metronode sites. We’ve also finished upgrades in our 
strategic data centres and upgraded cooling plants at our mobile 
core sites. 
In our local exchanges, we’re installing and upgrading cooling 
plants with adiabatic units, which use fresh air and water 
evaporation, making us less reliant on refrigerant gases. They 
work best on the hottest days – well suited to the rising ambient 
temperatures of different warming scenarios from 2030-2050. 
This year we’ve invested £5m on cooling system upgrades for 
local exchanges.
To reduce energy costs from cooling, we’ve increased the base 
temperature in sites across our network while maintaining optimal 
temperatures for our equipment.
More intense, longer and more frequent extreme 
weather events
Our extreme weather processes minimise service disruption. 
We continually scan the weather horizon to get early warning 
of potential weather-related risks, allowing us to prepare and 
launch defences. In extreme weather, our processes help us 
manage risks and prioritise restoring services – so customer 
impacts are minimised.
We had ten extreme weather events in the winter of 2023/24. 
Our preparation, management and strong infrastructure made 
sure they caused no major service disruptions. 
We track storm, temperature, rainfall and impact data. We use 
it alongside climate projections to calculate current and 
future risks.
Supply chain disruption from physical climate risks
This year we assessed physical climate risks in our supply chain. 
We have strong supply management risk processes in place. They 
include comprehensive supplier due diligence, engaging with and 
challenging key suppliers on pricing and supply chain diversity, and 
demand planning and forecasting.
Managing our transition risks and opportunities
Cutting emissions in our value chain and hitting our net zero 
targets should mitigate the impact of carbon pricing, cost of 
capital, energy pricing volatility and reputation risks. It will also 
support the UK’s commitment to becoming a net zero economy 
by 2050. Our carbon reduction plan explains what we’re doing to 
cut our operational and value chain emissions. 
See bt.com/carbonreductionplan for more information.
Changing consumer preferences and how they see us
We track changing customer preferences. We reflect this in how 
we engage with them and how we talk about our climate progress 
in customer communications and bids.
As well as opportunities around strategy and targets, our climate 
change actions help us stand out from the competition. We were 
one of the first companies to join initiatives like RE100, the CDP 
supply chain programme, and 1.5°C Supply Chain Leaders.
Supportive policies are critical to both our group and wider 
society to keep within the 1.5°C warming limit. So we work with 
regulators and policymakers to advocate for regulation to 
create this policy environment.
We also work with peers through associations like GSMA, techUK, 
Joint Audit Cooperation and the European Green Digital Coalition 
to build knowledge and expertise on ICT’s potential to help 
decarbonise other sectors. We work with policymakers too – 
to inspire others (like small and medium-sized enterprises) – 
to take climate action.
Carbon pricing and taxation
We’re not directly in the scope of a carbon pricing scheme. 
But we track developments and prices in the UK and other 
relevant jurisdictions. 
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Cost of capital
The Board oversees our debt status. We also have formal treasury 
risk management processes, delegated approvals and lender 
relationship management to manage credit risk across the group 
– including climate-related risks.
On the equity side, we engage regularly with shareholders through 
our investor relations team – including discussions on our ESG 
performance.
Carbon abatement solutions
There are lots of ways for customers to cut their carbon emissions 
(and associated climate risks) through our products and services. 
Most of our solutions reduce the need to travel, lower energy use 
and cut material and manufacturing needs.
Partnering with sustainability tech company QiO, we’ve launched 
an AI-powered edge computing solution to help our business 
customers cut carbon by optimising their energy use. 
We’ve also introduced real-time energy and carbon dashboards 
for bigger customers to help them estimate their networks’ carbon 
footprints and cut emissions. We’re collaborating with Johnson 
Controls to help customers digitalise their buildings and optimise 
their heating, ventilation and cooling systems to reduce energy 
and carbon. 
Energy pricing and efficiency 
Transforming our operating model includes making the group 
as energy efficient as possible. And we’ve already done a lot to 
cut our energy consumption. 
We’ve decommissioned redundant or underused network 
infrastructure and upgraded existing infrastructure to boost 
capacity with less energy. We’ve used machine learning to make 
incremental energy savings, and replaced supporting mechanical 
and electrical infrastructure (heating, cooling, and lighting) with 
more energy-efficient alternatives.
We’re also moving to fewer, more efficient buildings. And longer-
term, the switch to full fibre will need fewer exchanges and other 
network sites – cutting our network’s overall energy consumption.
Climate change, and other macroeconomic factors like war in 
Ukraine, expose us to fluctuating energy prices that we must 
manage. So our target is for UK (excluding Northern Ireland) 
energy demand to be at least 80% hedged a quarter before the 
start of the next financial year – and 50% hedged for the following 
financial year. 
In each financial year, we aim to build our Power Purchase 
Agreement (PPA) and virtual Power Purchase Agreement (vPPA) 
portfolio and explore five to ten year contract opportunities. We 
complement that by monitoring markets and forward purchasing 
electricity when the market is right.
The impact of climate-related risks and opportunities 
on our financial planning
Our medium term plan considers both capital and operating 
expenditure over a rolling five-year timeframe. 
The plan includes our investments on renewable electricity, 
transforming our buildings estate, making our network more 
resilient, energy efficiency and switching to a low carbon fleet. 
This helps us mitigate the potential impact of the bigger risks 
affecting our business and support our Manifesto goals. We also 
include projected revenue from carbon abatement solutions in 
our medium term plan. 
How we manage 
climate risks
A structured and consistent approach 
to risk management
We identify, assess, manage, and monitor climate-related risks 
through our risk management framework.
We consider three types of risk: 
1. Enduring – risks that won’t change much over time.
2. Point – dynamic risks which change quickly over time.
3. Emerging – uncertainties that might emerge over longer 
timeframes.
We could face climate-related risks in all these risk types, which 
we track and report to the Audit & Risk Committee and Executive 
Committee. 
You can read more about all of our overall GRCs on pages 63 to 70.
Identifying and assessing risks
We’ve identified climate-related risks in several GRCs. 
They include operational resilience (like more flooding, more 
intense, longer and more frequent heatwaves), stakeholder 
management (like changing consumer preferences, and how they 
see us), supply management (like supply chain disruption from 
physical climate risks) and health, safety & environment. We 
identify those risks through bottom-up and top-down discussions 
in our units – and across the whole group. This includes existing 
and emerging regulatory requirements relating to sustainability, 
such as upcoming reporting requirements from the EU’s 
Corporate Sustainability Reporting Directive (CSRD). 
We judge point risks based on their potential impact and how likely 
they are to happen in the next three years. We judge emerging 
risks based on their potential impact, the timeframe over which 
a risk could manifest (which could be beyond the three-year 
horizon of point risks) and our level of preparedness.
We calculate the impact for both risk types with quantitative and 
qualitative measures around financial impact, customer 
experience and stakeholder perception. This helps us decide the 
relative weight we give each risk.
Managing and reporting on risks
Once we’ve identified and assessed risks we give them an owner, 
depending on their priority. These owners decide the things we 
need to do to respond – like assigning controls, contingencies and 
monitoring activities.
Owners also regularly improve their action plans by checking 
metrics and other monitoring activities. This helps them 
understand future changes that might be needed – like taking new 
actions, escalating issues or updating assessment processes. 
For emerging climate risks that are more uncertain and apply 
across several parts of the business, we have an established 
climate change emerging risk hub. It brings together people 
from across the group in a forum to discuss developments and 
agree actions. 
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Task Force on Climate – related Financial Disclosures continued

Our climate metrics 
and targets
Measuring and monitoring climate risks and 
opportunities
In line with our risk management processes and strategic 
objectives, we track a number of metrics to measure and manage 
our climate-related risks and opportunities set out in Table 5 
below. We will continue to review our metrics and targets in line 
with potential regulatory changes and guidance from the 
International Sustainability Standards Board (ISSB).
We have a sustainability underpin for awards made under our 
Restricted Share Plan for Executive Directors. This means that we 
must have made sufficient progress towards our sustainability 
commitments for awards to be made. This could include progress 
on carbon emissions, carbon avoidance and circularity goals. You 
can read more about the sustainability underpin on page 109.  
Table 5: Climate-related risk and opportunity metrics, targets, and performance
Risk/ Opportunity name
Metric
Target
FY24 performance
More flooding
Network disruption (weighted 
for weather events) (%)a
Network downtime limited to 
0.01%
< 0.01%
More intense, longer and more 
frequent heatwaves
More intense, longer and more 
frequent extreme weather 
t
Supply chain disruption from 
physical climate risks
We assessed physical climate risks to our supply chain for the first time in depth this year. We’ll keep 
refining the assessment and develop metrics we could use to monitor this risk over time.
Changing customer 
expectations and how they 
see us
Scope 1, 2 and 3 emissions 
(tCO2e)
By FY31, to be a net zero carbon 
emissions business (Scopes 1 
and 2 market-based)
By FY31, to reduce our supply 
chain carbon emissions by 42%, 
compared to FY17 levels (Scope 
3 categories 1 - 8)
By FY41, to be net zero for our 
supply chain and customer 
carbon emissions (Scope 3)
164,743 (-59% vs FY17)
Carbon pricing and taxation
2,425,820 (-25% vs FY17)
Cost of capital
3,000,873 (-26% vs FY17)
ESG index performance: CDP, 
EcoVadis, MSCI, Sustainalytics, 
Vigeo Eiris 
Maintain our top quartile (Q1) 
place
Q1
Carbon abatement solutions
Cumulative emissions avoided 
by customers (tCO2e)
By FY30 help customers avoid 
60m tonnes of CO2e by using 
our products and services
1.5m (3.8m since FY21)
Energy pricing and energy 
efficiency
Networks’ energy consumption 
(GWh)b
Reduce our net networks’ 
energy consumption annually 
1,680 (-5.1% vs FY23)
% hedged energy costs
Have energy demand at least 
80% hedged one quarter before 
the start of the next financial 
year, and 50% hedged for the 
following financial year 
85% hedged one quarter before 
FY25
55% hedged for FY26
% UK electricity consumption 
covered by PPAs
N/A
24%
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a This metric describes overall service disruption to our UK network, weighted for our technology platforms most impacted by weather. 
b Refers to our UK on site electricity consumption, which excludes consumption from MBNL and tenants.

Our worldwide energy use and greenhouse gas emissionsa
In the table below, we provide an overview of Scope 1, 2 and 3 greenhouse gas emissions and our performance against our emissions 
reduction targets. We report in line with the Greenhouse Gas Protocol (ghgprotocol.org).
FY22
FY23
FY24
UK
Non-UK
UK
Non-UK
UK
Non-UK
Energy 
GWh
CO2ef 
Tonnes
Energy 
GWh
CO2e 
Tonnes
Energy 
GWh
CO2e 
Tonnes
Energy 
GWh
CO2e 
Tonnes
Energy 
GWh
CO2e 
Tonnes
Energy 
GWh
CO2e 
Tonnes
Scope 1b (direct emissions)
Gas and oil – heating
170
31,595
2
301
141
26,259
1
270
123
23,024
2
288
Gas and oil – generatorse
30
6,842
–
30
32
7,264
–
7
16
3,598
–
7
Fugitive emissions – 
refrigerants
3,087
1,501
522
268
456
1,110
Commercial fleet (converted 
from litres fuel)
557
130,971
3
575
588
141,884
–
673
543
129,779
–
621
Commercial travel (converted 
from mileage/cost/litres fuel)
13
3,151
5
1,300
15
4,018
11
2,720
9
2,555
14
3,300
Total Scope 1
770
175,646
10
3,707
776
179,947
12
3,938
691
159,412
16
5,326
Scope 2c (electricity including 
nuclear & CHPg)
Total consumption (LBMh)
2,311
490,712
208
63,599
2,283
441,713
198
56,121
2,225
460,654
198
60,770
MBMi renewable 
consumption CO2e 
adjustments
General consumption
2,309
(490,371)
208
(63,397)
2,280
(440,976)
198
(56,043)
2,216
(458,915)
198
(60,765)
Commercial fleet EVj 
consumption
2
(298)
–
–
3
(634)
–
–
8
(1,645)
–
–
Company car EV consumption
–
(43)
–
–
0.4
(103)
–
(20)
1
(94)
–
–
Total Scope 2 CO2e MBM 
adjusted
–
202
–
58
–
5
Total Scopes 1 & 2 (MBM)
3,081
175,646
218
3,909
3,059
179,947
210
3,996
2,916
159,412
214
5,331
Worldwide Scopes 1 & 2 CO2e 
(MBM)
179,555
183,943
164,743
% change from baseline year 
FY17 (baseline 404,780)
(56)%
(55)%
(59)%
Scope 3d: Worldwide 
emissions CO2e tonnes
3,243,361
3,133,579
3,000,873
Key climate targets:
Intensity metric Scope 1 & 2 
worldwide emissions tonnes 
CO2e per £m value added 
(baseline 31.50)
14.19
14.04
12.44
Target 
31 March 2031
% change from baseline year 
FY17
(55)%
(55)%
(61)%
(87)%
SBTI supply chain emissions 
GHG Scope 3 Upstream + 
Operational (GHG Catg 1-8) 
kt (baseline 3,217 kt)
2,634
2,500
2,425
Target 
31 March 2031
% change from baseline year 
FY17
(18)%
(22)%
(25)%
(42)%
N/A: Not available or not applicable
a Data presented has been reviewed to a high level of assurance by LRQA Group Limited against Accountability’s AA1000AS v3 assurance standard. We restate historical years’ data 
to replace estimates with actual figures and/or when we think subsequent information is materially significant as determined during audit (typically variances greater than one 
percentage point at category level).
b Scope 1: direct emissions from our own operations (e.g. fleet/heating fuel combustion).
c Scope 2: indirect emissions from the generation of our consumed energy (mainly electricity) (excludes third-party consumption).
d  Scope 3: including supply chain, customer use of our products and other indirect emissions (like employee commuting).
e  For gas and oil based on GWh equivalent input value before combustion and gross calorific value.
f  CO2e: carbon dioxide equivalent emissions.
g CHP: combined heat and power.
h  LBM: location-based method for Scope 2 emissions accounting – as defined in the Scope 2 Guidance amendment to the Corporate Standard (ghgprotocol.org). 
i  MBM: market-based method for Scope 2 emissions accounting – as defined in the Scope 2 Guidance amendment to the Corporate Standard (ghgprotocol.org). 
j  EV: electric vehicle.
You’ll find more information and data in our Manifesto section on pages 37 to 39 and the ESG Addendum (bt.com/esgaddendum).
BT Group plc Annual Report 2024
80
Strategic report
Task Force on Climate – related Financial Disclosures continued

In accordance with provision 31 of the UK Corporate Governance Code 2018, the Directors have assessed the prospects and viability of 
the group.
The assessment has been based on the Company’s strategy, balance sheet and financing position, including our £2.1bn undrawn 
committed borrowing facility which matures in March 2027, and the potential impact of ‘Our principal risks and uncertainties’ 
(pages 63 to 70).
The Board has chosen to conduct its review for a period of five years to 31 March 2029. The Board believe that this is an appropriate 
timeframe as it aligns with the primary focus of our business and financial planning. 
The assessment of viability is based on our medium term plan which forecasts the group’s profitability, cash flows and funding 
requirements, and is approved by the Board at the end of each year. The medium term plan is built from bottom-up business plans and 
financial forecasts of each of our Customer Facing Units (CFUs) and our Corporate Units (CUs) based on some central macroeconomic 
assumptions such as inflation and exchange rates. This is then supplemented by items managed at a group level. The macroeconomic 
assumptions are informed by independent third party forecasts. The performance of the group, our CFUs and our CUs against these 
forecasts is monitored monthly and this is supplemented each quarter through a series of quarterly business reviews of each unit 
conducted by the Chief Executive and Chief Financial Officer. 
Beyond our medium term planning horizon, the group also makes investments that have business cases covering a longer time period, 
such as our network investments. Significant capital expenditure investment cases are approved by the Chief Executive and, where 
appropriate, the Board, after taking into account longer-term risks and opportunities such as the economy, technology and regulation. 
Approach
Our medium term plan has been stress tested in a series of individual severe but plausible downside scenarios, each aligned to our group 
risk categories as set out on pages 63 to 70. This was followed by stress testing our forecasts against a combined scenario of correlated 
risks using a stochastic model. Finally, we then identified several mitigations that could realistically be taken by the business to avoid or 
reduce the impact of the underlying risk. 
Scenarios included in our combined severe but plausible stress test 
Our hypothetical combined downside scenario is based on hostilities in the Middle East escalating into a wider conflict. US and other 
Western allies’ involvement in the conflict increases and geopolitical relations between the West and Russia and China worsen. China 
increases military activities and blockades trading routes with Taiwan at the start of the five-year viability period. The combined effects 
on energy security and supply chain disruption lead to higher inflation, slower growth and recession which intensify cost-of-living 
pressures as well as increasing cyber and sanctions compliance risks. Increasing fixed infrastructure wholesale competition from 
alternative FTTP network providers materially impacts market share. Meanwhile, a hyperscaler makes direct moves into our markets. 
These impacts lead to additional pension payments being required. We fail to defend successfully the high value litigation claims brought 
against the group.
The individual scenarios selected for inclusion in the combined scenario were chosen based on some partial correlations and the current 
headwinds facing the group and the industry.
Scenario
Risk Category
Assumptions
Winter power 
shortages
Operational 
resilience
A crisis in the energy sector leads to insufficient gas supply and energy volatility
Assumptions: 
– 35% of Britain to experience daily outages for up to 60 days 
– Telecommunications companies not prioritised for service 
Supply chain 
disruption
Supply management Supply chains are disrupted due to blockage of trading routes
Assumptions: 
– Chinese blockades of trading routes with Taiwan slows but does not stop supply chain 
– Hostilities in Middle East have limited impact outside of global shipping impacts
International trade 
sanctions and 
export controls
Legal compliance
Discovery of breaches of sanctions or export controls imposed by UK, US or EU nations 
Assumptions: 
– Trigger for the scenario occurs in the first year 
– Widespread problem in two or more units leading to unintentional but significant 
breaches
Recession
Financing and 
Communications 
Regulations
The UK market experiences a significant recession with negative GDP growth. This 
increases unemployment rates and reduces household spend
Assumptions:
– Loss of proportion of managed contract new business which is not recovered over the 
medium term plan period
– Reduction of Consumer mobile device base
BT Group plc Annual Report 2024
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Strategic report
Viability statement

Scenario
Risk Category
Assumptions
Cyber security 
breach with 
customer data loss
Cyber security
BT falls victim to cyber attacks, experiencing a major loss of customer data which leads to 
a successful class action against BT 
Assumptions: 
– GDPR breach detected and announced followed by increased customer churn and 
EBITDA decline 
– Fine from the Information Commissioner’s Office 
– Class action claim from customers against the group 
Competitive 
pressures from 
alternative FTTP 
network providers 
continue to 
intensify
Strategy, technology 
and competition
Increased fixed infrastructure wholesale competition from alternative FTTP network 
providers
Assumptions:
– Alternative FTTP network providers make significant gains in market share even when 
overbuilt by Openreach at a later date
– Loss of volumes and materially lower retail market share
A hyperscaler 
makes direct move 
into our markets
Strategy, technology 
and competition
Hyperscaler competitor directly enters consumer market
Assumptions:
– Official announcement in late FY25 producing immediate impact from FY26 onwards
– Consumer losses enable some savings over time
– All existing operators experience same level of churn
Pensions deficit
Financing
An increase to BT’s funding obligations to the BT Pension Scheme (BTPS) 
Assumptions:
– A decline in macroeconomic outlook and financial markets increases the BTPS deficit
– The deficit is met through higher deficit payments over the term of the existing recovery 
plan 
Litigation losses
Legal compliance
We fail to successfully defend the high value claims brought against the group 
Assumptions:
– Based on publicised claim values claimed with severe outcomes 
We have considered directly relevant mitigations that we would employ if these events occurred and included those impacts in our 
calculations. 
As a summation of the full impact of each of the individual scenarios in this stress test would be an extremely unlikely outcome we used a 
stochastic model to develop a more realistic severe but plausible combined scenario. We applied an 80th percentile confidence interval 
which allows for a stress test of the medium term plan with a plausible but still severe combination of events, without assuming the worst 
impact happens across all scenarios at the same time.  The output of the 80th percentile confidence interval is around 40% of the total 
sum of these individual risks.
Results
Applying our severe but plausible combined scenario with related mitigations indicates that BT would experience a liquidity shortage 
commencing in the second year. However, there are further mitigations, including planned debt issuance, that could be applied to 
eliminate this liquidity shortage. We would need to adopt around a third of the mitigations we have identified to maintain positive cash 
flow over the full five-year period of the assessment. 
The mitigations directly in our control primarily revolve around reducing operating and capital expenditure cash outflow from the group. 
In addition, there are also several mitigations which are outside of our control like raising debt. The Board believe that it is reasonable to 
expect that it could continue to access debt capital markets to refinance a portion of our outstanding debt as it falls due, or to renew our 
undrawn committed facility (which expires in March 2027, before the end of the viability period). If access to debt markets wasn’t 
available, then equity capital markets would be considered as an alternative to raise funds. 
Based on the results of this analysis, the directors have a reasonable expectation that the group will be able to 
continue in operation and meet its liabilities as they fall due over the five-year period of their assessment. 
The directors also considered it appropriate to adopt the going concern basis of accounting when preparing the financial statements, as 
set out in the ‘Report of directors’ on page 126. 
BT Group plc Annual Report 2024
82
Strategic report
Viability statement continued

We’re committed to delivering on our bold 
ambition to be the world’s most trusted 
connector of people, devices and machines. We’re 
focused on growing sustainable value for all our 
stakeholders and the communities we operate in, 
through effective Board leadership, strong 
corporate governance and a clear understanding 
of the broader telecommunications market.
Compliance with the 2018 UK 
Corporate Governance Code (the Code)
In respect of the year ended 31 March 2024, BT Group plc was 
subject to the Code published by the Financial Reporting 
Council (FRC) in July 2018 (available at frc.org.uk). The 
Board confirms that BT Group has applied all the principles 
and complied with or explained all the provisions of the 
Code throughout the year as seen below. BT Group is aware of 
the updated Code, published by the FRC in January 2024, 
which will apply to financial years beginning on or after 
1 January 2025. 
1. Board leadership and company purpose
A: Leadership, long-term sustainable success, generating value 
for shareholders and contributing to wider society    19-29, 34-39, 72-80, 105
B: Purpose, values, strategy and culture   
            84, 88- 93, 98, 102, 105
C: Resources and prudent and effective controls  48-49, 61-62, 89, 93, 102, 105
D: Effective engagement with stakeholders                                     40-45, 90-91, 105
E: Workforce policies and practices 
       24, 30-34, 46-47, 88, 90-91, 102, 122
2. Division of responsibilities
F:  Leadership of the Chairman* 
                    
                                           84, 87, 88
G:  Board composition and clear division of responsibilities               8-9, 85-88, 94
H:  Role and time commitment of Non-Executive Directors 
     86-88, 97, 121
I: Policies, processes, information, time and resources, 
and support of the Company Secretary 
                           85, 87-88, 97-98
3. Composition, succession and evaluation
J: Board appointment process and effective succession planning                   85-98
K: Board and Committee skills, experience and knowledge 
        86-87, 96-98
L: Annual Board and individual director evaluation                                                      94, 98
4. Audit, risk and internal control
M: Independence and effectiveness of internal 
and external audit functions 
 
                                                 99-103
N: Fair, balanced and understandable assessment of 
company’s position and prospects  
                                      89, 100, 125
O: Procedures to manage risk, oversee internal control framework 
and determine the nature and extent of principal risks         61-62, 99-103, 127
5. Remuneration
P: Remuneration policies and practices 
                                                          110
Q: Procedure for developing policy on executive, director and senior 
management remuneration 
 
                                              106-124
R: Independent judgement and discretion 
in remuneration outcomes 
 
                                   108, 111, 114
Contents
Chairman’s governance letter
84
Our governance framework
85
Board leadership and company purpose
– Board of directors and division of responsibilities
86
– Role of the Board
88
– Board focus in FY24
89
– Board engagement with colleagues
90
Section 172 statement
92
Board composition, succession and evaluation
– FY24 Board and Committee evaluation
94
– Board induction
95
– Nominations Committee Chair’s report
96
Audit, risk and internal control
– Audit & Risk Committee Chair’s report
99
BT Compliance Committee Chair’s report
104
Responsible Business Committee Chair’s report
105
Report on directors’ remuneration
– Remuneration Committee Chair’s letter
106
– Focus on remuneration
110
– Annual remuneration report
113
– Remuneration in context
122
Statement of directors’ responsibilities
125
Report of the directors
126
*Further details on the responsibilities of the Board can be 
found on our website bt.com/governance
BT Group plc Annual Report 2024
83
Corporate governance report
Corporate 
governance report

The Board remains focused on ensuring it governs the 
group effectively, making careful decisions to generate 
long-term value for our stakeholders. We are cognisant of 
the new Code and are well placed to ensure our governance 
practices across the group are strengthened in line with 
this and evolving best practice.
The Board prioritises effective corporate governance across the 
group. Promoting fairness, openness and transparency in its 
responsibilities to stakeholders and generating long-term, sustainable 
success has been, and will remain, the Board’s primary objective. 
The Board has been educated on the key changes coming out of 
the new Code, published in January 2024. We’re well placed to 
build on our corporate governance practices to comply with the 
Code in future years, and to ensure the Board is carrying out its 
role in governing the group effectively. In next year’s report we’ll 
provide an update on how the priorities of the Board and 
committees have been shaped by the new Code in FY25. 
This Corporate governance report sets out the approach our 
Board takes to facilitate effective governance and how it supports 
our strategy and the decisions we have made, ensuring it considers 
the interests of our stakeholders and our contribution to society.
Board and committee changes
– Philip Jansen stepped down from the Board and as Chief 
Executive at the end of January. I’d like to take this time to thank 
Philip for the excellent job he has done during his time at 
BT Group and in leading our transformation. 
– We welcomed Allison Kirkby to the role of Chief Executive in 
February, having served on the Board since 2019. We’re 
delighted to have Allison lead the group and I look forward to 
supporting her as we drive our long-term strategy (see page 96 
for details on Allison’s appointment). 
– As mentioned in last year’s report, Ian Cheshire and Iain Conn 
stepped down from the Board at the conclusion of the 2023 
AGM. Adel Al-Saleh also stepped down in December 2023 and 
Isabel Hudson will step down at the conclusion of the 2024 AGM 
in July after serving nine years on the Board. On behalf of the 
Board, I would like to thank them all for their valuable 
contributions to the Board and to the group over the years and 
wish them well in their future endeavours.
– Ruth Cairnie joined the Board in April 2023 and, from the 
conclusion of the 2023 AGM, succeeded Iain as the Senior 
Independent Director and Ian as Chair of the Remuneration 
Committee.
– Raphael Kübler was appointed to the Board in January 2024 
having been put forward by Deutsche Telekom as their 
nominated director.
– We appointed Tushar Morzaria to the Board as an Independent 
Non-Executive Director with effect from 7 May 2024. Tushar 
brings a wealth of strategic financial management experience 
gained over 25 years where he has overseen transformation 
programmes and has strengthened risk and control frameworks. 
With these Board changes, we have focused on complementing 
the existing skills on the Board, and ensuring the best mix of 
diversity of viewpoints, skills and experience. More details on 
succession planning and the work of the Nominations Committee 
during the year can be found on pages 96 to 98. 
During the year, the Board has also made some changes to 
simplify our Board and Committee structure. After careful 
consideration, it was decided that it was the appropriate time to 
disband the BT Compliance Committee and to transition its 
responsibilities across the Audit & Risk and Responsible Business 
Committees. More detail on this can be found on pages 99 and 105. 
Supporting our colleagues
This has continued to be a challenging year for our colleagues; the 
Board recognised this and held many colleague-focused 
discussions during the year. 
After much deliberation, the Board decided to make changes to our 
colleague engagement mechanism and establish a comprehensive 
colleague outreach programme led by the Designated Non-Executive 
Director for Workforce Engagement. As part of this change, the 
Colleague Board was disbanded during the year. Maggie Chan Jones 
was appointed as our new Designated Non-Executive Director for 
Workforce Engagement, succeeding Isabel, who will step down from 
the Board at the conclusion of the 2024 AGM. Maggie’s previous 
experience, focus on coaching, and her championship of diversity, 
inclusivity and other colleague matters will help ensure that the voices 
of our colleagues continue to be heard in the boardroom. I’d like to 
thank Isabel for all of her support and guidance to the Colleague 
Board and our colleagues, over the past four years. Further detail on 
how the Board made this decision and how it engages with our 
colleagues can be found on pages 90 to 91.
Inclusion, equity and diversity 
We are committed to encouraging inclusive thinking inside and 
outside of our business. This year, we have made progress in ethnic 
minority representation, with decent gains against the bold targets 
set out in our Manifesto. For more information on our continued 
progress in this area, see pages 31 to 32 and 34 to 39.
The Board’s diversity targets are set out in our Board Diversity and 
Inclusion Policy. As at 31 March 2024, our Board comprised 50% 
female directors, two directors from an ethnic minority 
background, and one who has a disability. Ruth Cairnie’s 
appointment during the year as the Senior Independent Director 
ensured that we met the requirements of the Listing Rules to have 
female representation in at least one of the four senior board 
positions. This position was reinforced by Allison’s appointment as 
Chief Executive from 1 February 2024, meaning that half of the 
four senior board positions are now held by women. From the 2024 
AGM, our Board will comprise 40% female directors, three directors 
from an ethnic minority background, and one who has a disability.
Leading this Board and our business continues to be a privilege. 
I would like to thank all our BT Group teams for their continued 
efforts to help us deliver on our purpose and I am excited to work 
with a fantastic group of fellow directors over the next year.
Adam Crozier
Chairman
15 May 2024
BT Group plc Annual Report 2024
84
Corporate governance report
Chairman’s 
governance letter

The Board
Responsible for the stewardship of the group, overseeing its conduct and affairs to deliver on our strategic objectives and 
creating long-term success to generate sustainable value for our shareholders and the interests of other stakeholders. The 
Board has established certain Committees to assist it in discharging its responsibilities and delegates day-to-day 
responsibilities to the Chief Executive.
Board leadership and company purpose on pages 88 to 91
Audit & Risk Committee
Oversees, assesses and reviews our financial 
and narrative reporting, internal controls 
and risk management. It also oversees 
BT Group’s compliance with the 
Commitments  we made as part of the 2017 
Digital Communications Review (DCR) with 
Ofcom and the Governance Protocol.
Nominations Committee
Considers the structure, size and composition 
of the Board and its Committees and advises 
on succession planning for the Board and the 
Executive Committee. It ensures the Board is 
diverse, with the appropriate balance of skills, 
experience, independence and knowledge.
Audit & Risk Committee Chair’s report on 
pages 99 to 103
Nominations Committee Chair’s report 
on pages 96 to 98
Remuneration Committee
Agrees the remuneration framework for the 
Chairman, Executive Directors and certain 
senior executives and monitors remuneration 
practices and policies for the wider workforce.
Responsible Business Committee
Agrees the responsible business strategy, 
including its implementation through our 
Manifesto goals and targets, and monitors 
adherence to consumer fairness principles.
Remuneration Committee Chair’s letter 
and Report on directors’ remuneration on 
pages 106 to 124
Responsible Business Committee Chair’s 
report on page 105
On 6 April 2023, the Committee’s name changed from 
the Digital Impact & Sustainability Committee to the 
Responsible Business Committee. 
National Security and Investigatory Powers Committee
Oversees our role in the use of official investigatory powers.
Chief Executive
Responsible for running the business and setting and executing the group strategy.
BT Investment Sub-Committee
Provides input and recommendations 
that support the Chief Executive’s 
decision making on investment cases 
and budgets.
Executive Committee
Assists the Chief Executive to develop 
and execute the group strategy and 
budget, and monitors overall 
performance and how we’re 
managing risks.
Disclosure Sub-Committee
Ensures BT Group meets its disclosure 
obligations and reviews and approves 
regulatory and other announcements 
before publication.
Matters reserved to the Board and its Committees’ terms of reference can be found on our website at bt.com/governance
Each Committee Chair formally reports to the Board following their meetings and makes any recommendation to the Board in line with that Committee’s terms of 
reference. Papers and minutes are circulated to all Board and Committee members as appropriate, other than to those with a potential conflict of interest. Deutsche 
Telekom’s nominated director owes a fiduciary duty to both BT Group and Deutsche Telekom. The Conflicted Matters Committee reviews all papers ahead of sharing 
these with him to identify potential or actual conflicts of interest.
BT Group plc Annual Report 2024
85
Corporate governance report
Our governance 
framework 

 
Adam Crozier
Chairman
Appointed Chairman December 2021 and to the 
Board and as Chairman designate November 2021.
Experience
Adam was previously Chairman of ASOS, Stage 
Entertainment BV and Vue International Cinema 
Group, and a Non-Executive Director of Sony 
Corporation. He has over 20 years’ experience as a 
CEO across four different industries, most recently as 
the CEO of ITV from 2010 to 2017. Prior to ITV, 
Adam was CEO of Royal Mail from 2003 to 2010. 
Before that he was CEO of the Football Association 
from 2000 to 2002 and Joint CEO of Saatchi & 
Saatchi from 1995 to 2000.
Relevant skills and contribution to the Board
Significant experience in leading public company 
boards, developing teams and managing stakeholders 
and brings a strong transformational and operational 
track record in large-scale executive roles. He has also 
built a strong track record in turning around troubled 
organisations and in building and leading successful 
management teams.
External appointments
Chairman of Whitbread and Kantar Group. 
 
Allison Kirkby 
Chief Executive
Appointed Chief Executive February 2024 and to the 
Board March 2019.
Experience
From May 2020 until being appointed Chief Executive 
of BT Group, Allison was President & CEO of Telia 
Company. Allison was previously President & Group 
CEO of TDC Group until October 2019, and President 
& Group CEO of Tele2 AB from 2015 to 2018, having 
been Tele2 AB’s Group CFO from 2014. She was chair 
of the Audit Committee and a Non-Executive Director 
of Greggs until May 2019. She has also held financial 
and operational roles within 21st Century Fox, Virgin 
Media, Procter & Gamble and Guinness.
Relevant skills and contribution to the Board
Valuable and recent experience in the international 
telecoms and media sector, combined with significant 
experience in transformation, driving performance, 
improving customer service and delivering shareholder 
value.
External appointments
Non-Executive Director and member of Audit 
Committee of Brookfield Asset Management 
Limited.
 
 
Simon Lowth
Chief Financial Officer
Appointed Chief Financial Officer and to the Board 
July 2016.
Experience
Simon was CFO of BG Group before its takeover by 
Royal Dutch Shell in February 2016. Before that, he 
was CFO of AstraZeneca from 2007 to 2013. He was 
an Executive Director of ScottishPower from 2003 to 
2007, having been appointed as the Finance Director 
in 2005. Before 2003, Simon was a director of 
McKinsey & Company.
Relevant skills and contribution to the Board
A strong background in finance, accounting, risk, 
corporate strategy and mergers and acquisitions. 
Simon has experience and a track record of 
implementing cost transformation and performance 
improvement programmes.
External appointments
Non-Executive Director and member of the Audit 
and Nomination & Governance Committees of Smith 
& Nephew.
 
 
 
Isabel Hudson
Independent Non-Executive Director
Appointed to the Board November 2014.
Experience
Isabel was previously Non-Executive Chair of the 
National House Building Council until May 2020. She was 
also previously Senior Independent Director of RSA 
Insurance, Non-Executive Director of The Pensions 
Regulator, MGM Advantage, QBE Insurance, Standard 
Life and an Executive Director of Prudential Assurance 
Company in the UK.
Relevant skills and contribution to the Board
A wealth of experience in financial services, in the life, 
non-life and pensions industries as well as risk, control, 
governance and international business. Insight and 
expertise in regulatory, pensions and financial matters.
External appointments
Non-Executive Director and Chair of the Audit 
Committee of Axa S.A. and Non-Executive Director of 
ISC Group, a not-for-profit organisation supporting 
women to bridge the gender seniority gap in insurance. 
Isabel is also an ambassador for the disability charity, 
SCOPE.
 
 
 
Matthew Key 
Independent Non-Executive Director
Appointed to the Board October 2018.
Experience
Matthew held various positions at Telefónica from 
2007 to 2014 including as Chairman and CEO of 
Telefónica Europe and Chairman and CEO of 
Telefónica Digital. From 2002 to 2004 he was the 
CFO, Strategy and Regulation Director of O2 UK 
before becoming CEO in 2004. Matthew previously 
served as Finance Director at Vodafone UK and 
Chairman of Tesco Mobile. He has previously held 
positions at companies including Kingfisher, Coca-
Cola and Schweppes Beverages, Grand Metropolitan 
and Dallaglio RugbyWorks. He was also a Non-
Executive Director and Chair of the Audit Committee 
of Burberry from 2013 to 2023.
Relevant skills and contribution to the Board
Strong strategic skills and a wealth of experience in 
finance and the telecoms sector. Matthew is also a 
Director of the joint venture between BT Group and 
Warner Bros. Discovery.
External appointments
None.
 
Raphael Kübler 
Non-Independent, Non-Executive Director
Appointed to the Board January 2024.
Experience
Raphael is the Chief Operating Officer of Deutsche 
Telekom AG. Prior to this he held the position of 
Senior Vice President Controlling at Deutsche 
Telekom AG and Chief Finance Officer of T-Mobile 
Deutschland GmbH. Raphael has also been a 
director of T-Mobile USA, Inc., since April 2013 and 
served on other boards of listed companies, 
including Ströer SE & Co. KGaA, Hellenic 
Telecommunications Organisation and SES Global 
S.A.
Relevant skills and contribution to the Board
Extensive experience in the telecommunications 
industry, including strategic transformation projects 
and mergers and acquisitions.
External appointments
Director of T-Mobile USA, Inc. 
BT Group plc Annual Report 2024
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Corporate governance report
Board of directors 
and division of  
responsibilities
Membership key
Audit & Risk Committee
Committee Chair
Executive Committee
National Security and Investigatory Powers Committee
Nominations Committee
Remuneration Committee
Responsible Business Committee

Ruth Cairnie 
Senior Independent Non-Executive Director
Appointed to the Board April 2023.
Experience
Ruth has a wealth of experience gained from a 37-
year international career at Royal Dutch Shell 
holding senior functional and line roles, including 
having responsibility for group strategy and 
planning. She was a Non-Executive Director of 
Associated British Foods from 2014 to 2023 and 
Senior Independent Director and Remuneration 
Committee Chair from 2018. She was a Non-
Executive Director of Rolls-Royce from 2014 to 
2019 and Remuneration Committee Chair from 
2016, a Non-Executive Director of ContourGlobal 
from 2018 to 2019 and Non-Executive Director and  
Remuneration Committee Chair at Keller Group 
from 2010 to 2017.
Relevant skills and contribution to the Board
Ruth has extensive experience gained from a broad 
range of executive and non-executive roles at 
leading industrial companies, both in the UK and 
internationally. She also has experience advising 
government departments on strategic development 
and capability building.
External appointments
Chair of Babcock International Group and a trustee 
of Windsor Leadership and the White Ensign 
Association.
Maggie Chan Jones
Independent Non-Executive Director and Designated 
Non-Executive Director for Workforce Engagement
Appointed to the Board March 2023.
Experience
Maggie was the founder and served as the Chief 
Executive of Tenshey for seven years until February 
2024. Maggie originated Tenshey’s mission to 
elevate more women and underrepresented talent 
into leadership roles and the boardroom. This builds 
on a highly successful career in marketing at several 
of the world’s largest technology companies, 
including Microsoft and SAP.
Relevant skills and contribution to the Board
Deep international marketing and brand experience. 
Maggie is a recognised executive in business 
transformation, ESG and as an industry thought-
leader in the marketing and technology sector.
External appointments
Non-Executive Director of Sage Group and the 
United States Tennis Association (non-profit). She 
is also a Non-Executive advisor to Ontinue AG.
Steven Guggenheimer 
Independent Non-Executive Director
Appointed to the Board October 2022.
Experience
Steven has more than 25 years of experience at 
Microsoft, where he held a variety of senior and 
large-scale leadership roles between 1993 and 
2020. For the last 12 years he held the position of 
Corporate Vice President leading the OEM, 
Developer/ISV, and AI Solutions organisations. Prior 
to joining Microsoft, Steven worked at Spectra-
Physics Lasers. 
Relevant skills and contribution to the Board
Accomplished technology executive with a strong 
track record of advising businesses on digital 
transformation and extensive insight into 
technologies ranging from AI to cloud computing.
External appointments
Non-Executive Director of HSBC Holdings, Forrit 
and Leupold & Stevens. He is also an advisor to 
Tensility Venture Partners and Aries Software 
Holdings.
Sara Weller 
Independent Non-Executive Director
Appointed to the Board July 2020.
Experience
Sara’s previous roles include Managing Director of Argos 
and various senior positions at J Sainsbury, including 
Deputy Managing Director and serving on its board 
between 2002 and 2004. Sara was a Non-Executive 
Director of Lloyds Banking Group until May 2021 and 
United Utilities Group until July 2020. She was also 
the lead Non-Executive Director at the Department 
for Work and Pensions until April 2020, Lead Non 
Executive at the Department of Communities and Local 
Government 2010 to 2015, Non-Executive Director of 
Mitchells & Butlers and held senior management roles 
at Abbey National and Mars Confectionery. 
Relevant skills and contribution to the Board
A broad perspective coming from a background in 
retail, fast moving consumer goods and financial 
services, as well as strong executive and non-
executive board experience in regulated sector plcs 
and central Government organisations.
External appointments
Chair of The Money and Pensions Service and Non-
Executive Director of Virgin Money UK and Clydesdale 
Bank (a subsidiary of the Virgin Money Group).
Tushar Morzaria
Independent Non-Executive Director
Appointed to the Board May 2024.
Tushar joined the Board on 7 May 2024 as an 
Independent Non-Executive Director. Tushar is a 
member of the Audit & Risk, Nominations and 
Remuneration Committees. 
Sabine Chalmers 
General Counsel, Company Secretary & Director 
Regulatory Affairs
Sabine joined BT Group in April 2018 as General 
Counsel and was appointed as Company 
Secretary in September 2021.
See page 9 for Sabine’s full biography.
Board changes
In line with our recent announcement, 
Isabel Hudson will not put herself forward 
for re-election at the 2024 AGM and will 
cease as an Independent Non-Executive 
Director on the Board at the conclusion 
of the 2024 AGM. 
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Our directors share collective responsibility for the 
activities of the Board. There is a clear division of 
responsibilities between the Chairman and the 
Chief Executive as required under the Code. The 
responsibilities of the Chairman, Chief Executive,  
Chief Financial Officer and Senior Independent Director 
and other key roles within BT Group, along with the matters 
reserved to the Board, are set out on our website at 
bt.com/governance

Role of the Board
The Board is responsible for establishing the group’s purpose, 
values, strategy and culture, and for setting the tone from the top. 
Further details on our purpose, ambition, values and strategy on 
pages 18 to 29. 
The Board monitors the indicators of our culture through:
– discussions with the Chief Executive
– reports from the Chief Human Resources Officer, which include 
progress on simplifying organisational effectiveness and 
embedding a performance culture that rewards outcomes
– reports to the Audit & Risk Committee on any concerns raised 
through our Speak Up whistleblowing service, see page 102
– themes and insights from our Your Say colleague engagement 
surveys
– all-employee “Join Allison” live Q&A sessions
– direct feedback and insights from colleagues via our Designated 
Non-Executive Director for Workforce Engagement.
We believe that these indicators remain effective in providing the 
Board with useful insights into colleague sentiment and the wider 
culture across the organisation. More information on how the 
Board is kept informed of colleague perspectives and our culture 
can be found on page 90 to 91 and in the Strategic report on 
page 41.
The Board maintains oversight of the group’s operations, 
performance, governance and compliance with statutory and 
regulatory obligations. It determines the group’s risk appetite, 
ensures that we have robust systems of risk management and 
internal controls in place, and is responsible for ensuring that there 
is an effective leadership team in place to efficiently execute the 
group’s strategy.
A number of key decisions and matters are reserved to the Board 
and are not delegated to any of the Committees, the Chief 
Executive or management. 
These are set out in the matters reserved to the Board and 
are available on our website: bt.com/governance
Board meetings in FY24 were held in person in our head office in 
London to ensure constructive levels of engagement and 
discussion, to challenge management and encourage robust 
debate as part of decision making. Video conference was 
available for invited attendees who were unable to join the Board 
in person. Pre-Board meeting dinners were held for the Board as 
part of informal interactions.
Meetings attended
Adam Crozier (Chairman)
8/8
Allison Kirkby a
8/8
Philip Jansen b
7/8
Simon Lowth
8/8
Adel Al-Saleh c
7/7
Ruth Cairnie
8/8
Maggie Chan Jones
8/8
Ian Cheshire d
2/2
Iain Conn d
2/2
Steven Guggenheimer e
7/8
Isabel Hudson f
7/8
Matthew Key
8/8
Raphael Kübler g
1/1
Sara Weller
8/8
a Allison attended all Board meetings during the year as a Non-Executive Director 
b Philip sent his apologies for the last meeting of the year as he stepped down from the 
Board and as Chief Executive on 31 January 2024
c Adel stepped down from the Board on 31 December 2023
d Ian and Iain stepped down from the Board at the conclusion of the 2023 AGM
e Steven sent his apologies for the July meeting due to a pre-existing conflict
f Isabel sent her apologies for the September meeting due to a personal matter
g  Raphael joined the Board on 30 January 2024
Meetings and attendance
We held eight scheduled Board meetings including one strategy 
meeting in FY24. The Chairman also held private sessions with the 
Non-Executive Directors during the year. The Company Secretary 
is Secretary to the Board, and she, or her delegate, attends all 
meetings and provides advice, guidance and support as required. 
Each member of the Board, individually and collectively, has 
access to the Company Secretary and can obtain independent 
professional advice if needed.
Board and Committee members are provided with papers in 
advance of each meeting on a secure electronic portal. Directors 
are expected to attend Board and relevant Committee meetings 
of which they are a member, unless prevented by prior 
commitments, illness or a conflict of interest. If a director is unable 
to attend a meeting, they usually give their comments to the 
Chairman or the Committee Chair in advance so that these 
can be considered as part of the discussion at the meeting.
Section 172 statement 
and stakeholders
Our Section 172 statement is set out on pages 92 to 93 and 
demonstrates our Directors’ regard to the matters in section 172 
of the Companies Act 2006 (2006 Act) in performing their duties, 
and how they have had regard to colleagues’ interests and the 
need to foster business relationships with suppliers, customers and 
others, together with a summary including the Board’s principal 
decisions. 
See pages 90 to 91 for details on the Board’s engagement with 
our colleagues and the Strategic report on pages 40 to 45  for 
additional details of how we engage with our key stakeholders.
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Board leadership and company purpose

Board focus in FY24
Group strategy
During the year, the Board:
Approved strategic initiatives and items of significant 
strategic importance in line with the matters reserved 
to the Board including:
– maintaining the pace of FTTP build towards the target of 25m 
premises by the end of 2026 against the challenging economic 
climate 
– the sale of BT Tower to MCR London Holdings Limited for 
£275m (see pages 93 and 174)
– BT Pension Scheme (BTPS) triennial valuation (see pages 54, 
93 and 193)
– simplification activities in relation to the merging of Enterprise 
and Global to create Business.
Held a full-day strategy meeting where it considered 
with management:
– the group’s strategy and long-term growth opportunities
– the approach for Business going forward
– strategic priorities and how these are built into the group’s 
medium-term plan
– progress on key initiatives
– key challenges and risks to delivering our priorities and plans 
to address or mitigate these
– the macroeconomic environment and how the group should 
respond. 
Received and discussed the Chief Executive’s report at 
each meeting, which focused on:
– the group’s overall performance and operations
– progress against our strategic pillars and priorities
– the competitive and regulatory environment that the group 
operates in
– engagement with, and the views of, our stakeholders including 
our investors, our colleagues, Ofcom and Government
– key business operations including matters which are important 
to the group’s reputation, as well as colleague, customer, 
supplier and community considerations.
During the year, the Board also considered, discussed and agreed 
not to proceed with certain proposed initiatives which were 
determined not to be strategically important or beneficial to 
the group.
Performance and execution of strategy
During the year, the Board discussed, reviewed and, as 
appropriate, approved:
– the financial statements at full and half year and trading 
updates at each quarter, including any external guidance. It also 
discussed the feedback from investor meetings, including 
feedback received after the publication of each set of financial 
results. At each meeting, the Board reviewed the current 
financial and trading performance for the period against budget 
and consensus, and the full year outlook for each unit and the 
group as a whole
– the going concern and viability statements and the group’s tax 
strategy
– reports, on a monthly basis, outlining share register movement, 
our share price performance relative to the market, investor 
relations activities and engagement with shareholders 
– the medium-term plan, having considered the main 
opportunities and challenges, our strategic priorities and KPIs
– the group’s financing strategy, having considered different 
options for raising finance and managing cash flow
– the delivery of the group’s transformation programmes against 
our objectives to drive efficiencies, opportunities and continued 
cost reduction across the group
– customer experience for each CFU including individual brand 
and customer segment NPS, in particular the progress against 
our related ambitions. As part of this, the Board was updated on 
the initiatives and customer insights used to drive improvement 
for our customers. Further details on customer experience can 
be found on page 26 to 27. 
– any regulatory or competition investigations and significant 
litigation, including our response and the stakeholder and 
reputational impact of these.
Risks, controls and governance
During the year, the Board discussed:
– the group risk management framework twice, with in-depth 
discussions on certain group risk categories (GRCs), including 
the point and emerging risks and uncertainties facing the group 
and our risk appetite for each (see pages 61 to 70). The Board 
also received regular updates from the Chair of the Audit & Risk 
Committee, which undertakes detailed reviews of the group’s 
systems of risk management and internal controls, including the 
effectiveness of the controls, mitigation activities and any areas 
for improvement (see page 102), as well as GRCs not discussed 
by the Board
– the progress of BT Group transformation programmes
– the Annual Report, which was subsequently approved on the 
recommendation of the Audit & Risk Committee (see page 100), 
that, taken as a whole, it is fair, balanced and understandable 
and provides the information necessary for shareholders to 
accurately assess the group’s position and performance, 
business model and strategy
– the themes and actions agreed as a result of this year’s Board 
and Committee evaluation (see page 94).
People and culture 
During the year, the Board discussed:
– the succession and appointment of the Chief Executive, 
delegating final approval to a sub-committee of the Board. 
More information on Allison’s appointment as Chief Executive 
can be found in the Nominations Committee Chair’s Report on 
page 96
– the progress of integrating Enterprise and Global into Business, 
together with the related operating model changes and 
colleague impacts, focusing on the right diversity in the 
leadership teams (see page 22)
– the progress and delivery against our people and cultural 
strategy, ambitions and related goals. Our ambition is to build 
a culture where people can be their best and make BT Group a 
brilliant place to work
– skills and organisational development; inclusion, equity and 
diversity; occupational health and wellbeing, and colleague 
engagement.
Each of the Committee Chairs also reported back to the Board on 
the areas within their remit that are important indicators of the 
group’s culture.
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Board engagement 
with colleagues
Colleague Board – FY24 activities
The Colleague Board was in place throughout most of FY24, and 
held three formal meetings, an additional meeting with Isabel 
Hudson, Maggie Chan Jones and Allison Kirkby, and a number 
of informal sessions with internal teams during the year. 
The Colleague Board’s views were sought on pan-BT Group 
programmes, including how these are aligned with our values and 
culture, and how we communicate these to our colleagues. The 
Colleague Board continued to successfully contribute to, and 
shape, some of our key initiatives this year by sharing different 
views and perspectives. This helped the Board and senior 
leadership to understand the perspectives of our colleagues on a 
range of different topics, and supported good decision-making 
practices. There was a Q&A session at each meeting which 
enabled Colleague Board members to ask questions of the Chief 
Executive and Isabel and provided an opportunity for Colleague 
Board members to further understand key issues impacting the 
group and our colleagues. 
As in previous years, the Colleague Board was chaired by the Chief 
Executive. Members included Isabel and a number of colleagues 
from a diverse range of roles across the group. Sabine Chalmers, 
BT Group General Counsel, Company Secretary & Director 
Regulatory Affairs, and Athalie Williams, Chief Human Resources 
Officer, and two Openreach colleagues were also invited and 
attended all formal meetings. Other members of the Executive 
Committee attended meetings on a rotating basis and the 
Chairman and other Non-Executive Directors were able to attend 
meetings as observers. The Director of Internal Communications 
was invited to attend Colleague Board meetings and members 
were encouraged to feedback on key internal communications. 
The Deputy Company Secretary was secretary to the Colleague 
Board and he, or his delegate, attended all meetings and provided 
support, guidance and advice as required. 
The last formal Colleague Board meeting was held in November 
2023. A final meeting with members was held with Isabel, Maggie 
and Allison in February 2024 to thank Isabel and the Colleague 
Board members for their efforts over the years and to discuss the 
key topics for both Maggie, as the new Designated Non-Executive 
Director for Workforce Engagement, and Allison, as Chief 
Executive, to be aware of going forward. 
Key topics discussed in FY24
People 
framework, pay 
and benefits
Colleague feedback on the people 
framework, pay and benefits and a deep dive 
session was hosted by the Director of Group 
Reward.
Inclusion, equity 
and diversity
The group’s progress on inclusion, equity 
and diversity and the future priorities and 
insight was fed back to Isabel for future 
consideration during Board meetings.
Hybrid working
Colleague sentiment on the hybrid working 
principles and how consistently this is 
applied across the group.
Colleague 
engagement 
surveys
The move from annually to quarterly Your 
Say colleague engagement surveys. The 
Board asked Colleague Board members to 
encourage colleagues to complete the 
condensed surveys and communicate the 
importance of the results.
Business 
integration
The integration of Enterprise and Global 
forming Business, and the challenges 
brought about by this change, including 
impacts on colleagues, whilst recognising 
the overall benefits to the group.
‘Speak Up 
Because We Care’ 
campaign
Consideration of the campaign, which was a 
Colleague Board request to address peer to 
peer engagement on internal digital 
platforms. The Board recognised that 
engagement between colleagues has been 
positively impacted by the campaign, 
especially on Workplace by Meta (BT 
Group’s internal social media platform).
Travel and 
expenses
Colleague feedback on the changes made to 
the travel and expenses policy. HR and 
Finance subsequently carried out a review 
and made the appropriate updates to ensure 
the policy remains suitable for colleagues.
Colleague Board engagement
With the Board
At each formal Colleague Board meeting, the Board (via Isabel) 
and/or management had the opportunity to discuss topics on 
which they would like the Colleague Board members’ 
perspectives. Colleague Board members shared their insights on 
‘hot topics’ in order to bring these to the attention of the Board 
and/or management. The Colleague Board raised and discussed 
a variety of topics, including those in the table above. Isabel 
reported back to the Board and its Committees, as appropriate, 
on the discussions, providing the Board with a direct insight into 
colleague perspectives to help inform its decision making. During 
the year, Isabel updated the Remuneration Committee on 
sentiments being raised by our colleagues in relation to the 
remuneration of our workforce and related discussions. The 
Colleague Board meeting materials and notes of the meetings 
were also made available to the Board. 
The Chief Executive and Executive Committee members’ 
attendance, as well as the Designated Non-Executive Director 
for Workforce Engagement, allowed for a mutual exchange of 
information, especially in relation to current ‘hot topics’, which was 
fed back into the Board and Executive Committee’s discussions 
and decision-making process throughout the year. One example 
was the feedback the Colleague Board provided on the pay review 
during the year which was discussed at both Colleague Board and 
Board meetings, ahead of a decision.
Since its inception, the Colleague Board has been used alongside 
other colleague engagement mechanisms which will continue to 
be utilised and enhanced going forward. See page 41 for more 
information on how we engage with colleagues. 
With our colleagues
Colleague Board members fed back to colleagues on the 
discussions from formal meetings as well as highlighting any other 
issues raised between meetings. Members were encouraged to 
connect via internal engagement channels including the People 
Networks and by reviewing the outputs of the Your Say 
engagement surveys to obtain an increased and broader 
understanding of colleagues’ views. 
Each Colleague Board member was invited to join the senior 
leadership team calls hosted by the Chief Executive throughout 
the year to give them additional perspectives on the group’s 
performance and strategic decisions. 
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Board leadership and company purpose continued

The Colleague Board members also delivered a series of Meetx 
Teams live sessions (BT Group’s equivalent of TEDx talks) which 
aimed to increase the visibility of leadership from across the group, 
covering topics including leadership, culture and inclusivity, equity 
and diversity. 
Changes to our colleague engagement mechanism
The Colleague Board has been the Board’s chosen workforce 
engagement mechanism under the Code since 2019. During the 
year, as part of a review of our governance structures carried out 
by the Chairman, supported by the Company Secretary, the Board 
concluded that it was the appropriate time to re-evaluate the 
workforce engagement mechanism best suited to the group. 
The Board considered the workforce engagement structure and 
found that, whilst the Colleague Board has delivered on its aims to 
bring the colleague voice into the boardroom, a number of 
alternative approaches are available. The Board considered a 
number of factors including the overlap of the Colleague Board’s 
role with other colleague engagement mechanisms across the 
group, especially the change in frequency of the Your Say 
engagement surveys from annually to quarterly, and also the 
amount of work the Colleague Board members were undertaking 
to represent the colleague voice.
After deliberation, the Board concluded that the Colleague Board 
should be disbanded and that the Designated Non-Executive 
Director for Workforce Engagement should engage in a 
comprehensive colleague outreach programme which will utilise 
the existing colleague engagement mechanisms across the group. 
The Board recognised the key role the Colleague Board has played 
in bringing the colleague voice into the boardroom for the last four 
years, and are appreciative of the passion and commitment of 
Colleague Board members over the years in aiming to make 
BT Group a better workplace for all.
Additionally, as part of this review, and in light of Isabel’s tenure 
on the Board, it was considered an appropriate time to appoint 
a new Designated Non-Executive Director for Workforce 
Engagement. Maggie was appointed to succeed Isabel and will 
bring to the role her personal experience and insight, her focus 
on coaching, and her championship of diversity, inclusivity and 
other colleague matters. 
After another challenging year for our 
colleagues, I would like to thank the Colleague 
Board members for their continued contributions 
and valuable insight into colleague sentiment, 
which I have shared with the Board throughout 
the year. The thought-provoking questions and 
constructive challenges have greatly benefitted 
the Board’s decision-making process. I would 
like to congratulate Maggie on her new role and 
I am confident she will continue to ensure 
the voices of colleagues are clearly heard in 
the boardroom.
Isabel Hudson
Designated Non-Executive Director for Workforce Engagement 
and a member of the Colleague Board (2019-2024)
Colleague engagement mechanism – FY25 and 
beyond
Maggie will be undertaking a series of colleague engagement 
activities throughout FY25. The purpose of this engagement is to 
listen and understand colleagues’ views and perspectives, and 
enable her to communicate these back to the Board and integrate 
them into decision-making. Through this, the Board will continue 
to obtain direct insights into colleague sentiment at all stages of 
the decision-making process. 
Maggie will receive a quarterly written report collated by the 
People, Ethics & Compliance team which will utilise the rich variety 
of data sources available on colleague sentiment across the group, 
including Your Say engagement survey results, inclusion, equity 
and diversity data, and internal communications insight reports. 
Whilst this report will be collated for Maggie as the Designated 
Non-Executive Director for Workforce Engagement, she may 
consider it appropriate to share this with the wider Board.
The People, Ethics & Compliance team will also schedule regular 
colleague engagement sessions with Maggie to take place 
throughout FY25, through in person visits and virtual calls. During 
these sessions, colleagues will be encouraged to share personal 
views and experiences. These sessions will include meetings with 
the People Network leads, Trade Union representatives, and 
attending internal events. Sessions will also be scheduled with 
members of the reward team as appropriate, and in line with 
colleague events and ahead of colleague-related Board 
discussions, to ensure Maggie has insight into the colleague 
sentiment on relevant topics. 
In 2024, as part of Maggie’s Board induction programme, Maggie 
visited two contact centres in Tyneside and Gosforth and listened in on 
customer calls and digital chats and participated in two town hall 
meetings with colleagues based at those locations. More information 
on Maggie’s induction programme can be found on page 95.
The reports, together with the colleague engagement sessions, 
will enable Maggie to provide the Board with a holistic view of 
colleague sentiment across the group, and help ensure that the 
colleague voice is represented in the boardroom. 
The effectiveness of engagement with our colleagues will be kept 
under review in FY25 and changes will be made where appropriate.
I have thoroughly enjoyed my first colleague 
engagement experiences and I am looking forward 
to engaging with our colleagues across the group. 
We are fortunate to have a wealth of insightful 
data available to provide an overview of our 
colleagues’ sentiment and I shall pair this with 
personal experience stories to provide the Board 
with a well rounded picture. My goal is to ensure 
that the colleague voice is represented in the 
boardroom and is considered throughout the 
Board’s decision-making process. Our colleagues 
are our most important asset and I am passionate 
about making sure they are able to inform the 
decisions we make toward success.
Maggie Chan Jones
Designated Non-Executive Director for Workforce Engagement
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In their discussions and decisions during FY24, the directors of BT Group plc have acted in the way that they consider, in good faith, 
would be most likely to promote the success of the group for the benefit of its members as a whole, having regard to stakeholders and 
the matters set out in sub-sections 172(1) (a)–(f) of the 2006 Act.
The Board considers the matters set out in section 172 of the 2006 
Act in its discussions and decision making, including:
The likely consequence of any decision in the long-
term:
– The Directors recognise that the decisions they make today will 
affect the group’s long-term success. During the year, the Board 
had particular regard to this in its discussions on group strategy 
(see page 89). Our purpose and strategy demonstrate how we 
realise our ambition and grow value for all our stakeholders. This 
in turn guides the Board’s decisions, specifically the balance 
between short and long-term investments. The third pillar of 
our strategy – lead the way to a bright, sustainable future – 
incorporates our aim to identify and develop new business 
opportunities that will help us grow sustainably in the future. 
More information on our strategy can be found on pages 18 
to 29.
The impact of the group’s operations on the 
community and environment:
– The Responsible Business Committee continues to oversee the 
progress of our Manifesto. This aims to accelerate growth 
through technology that is responsible, inclusive and 
sustainable, ensuring the group can continue to build trust and 
create value for its stakeholders. The Committee also monitors 
progress on the digital impact and sustainability strategy and 
our sustainability goals. During the year, the Committee 
considered and approved the group’s Carbon Abatement 
Methodology which formalises our goal to help our customers 
avoid 60m tonnes of carbon emissions through our products 
and services (see page 105).
– Information as to how we have addressed the recommendation 
of the TCFD framework can be found on pages 71 to 80.
The desirability of maintaining a reputation for high 
standards of business conduct:
– The Board acknowledges its responsibility for setting and 
monitoring the culture, values and reputation of the group. Our 
colleagues are central to us achieving this ambition and we’re 
focused on building a culture where our colleagues can be their 
best. During the year, the Board considered the group’s culture 
in its decision making and discussions (see page 88).
– The Audit & Risk Committee also considered regular reports 
from the General Counsel People, Ethics & Compliance on our 
ethics and compliance policies and programmes and reports on 
issues raised through Speak Up, BT Group’s confidential 
whistleblowing service (see page 102).
The interests of our colleagues, and the need to foster 
business relationships with our key stakeholders :
– The Board and its Committees understand the strategic 
importance of stakeholders to our business. When making 
decisions, the Directors have regard to the interests of 
colleagues, and the need to foster business relationships with 
other key stakeholders. We acknowledge that not every 
decision we make will necessarily result in a positive outcome for 
all our stakeholders, so the Board must balance competing 
interests in reaching its decisions.
– While the Board engages directly with stakeholders on some 
issues, the size and distribution of BT Group and our stakeholder 
groups means that stakeholder engagement often happens 
below Board level. However, the Board considers information 
from across the group to help it understand how our operations 
affect our stakeholders’ interests and views. More details on 
how we engage with key stakeholders (including customers and 
suppliers) on pages 40 to 45.
– Our colleagues are key to our success, and they are considered 
as part of the Board’s discussions and decision making. The 
Board and its Committees have reviewed colleague health and 
wellbeing, our inclusivity, equity and diversity ambitions, 
organisational culture and the impact of our transformation 
programmes, as well as on employee relations (see pages 30 
to 33  for more details). More information on the Board’s 
engagement with colleagues can be found on pages 90 to 91 
and other colleague engagement channels are set out on 
page 41.
The need to act fairly between BT Group’s 
shareholders:
– During FY24, the Chairman, Chief Executive, Chief Financial 
Officer, other executives and the Investor Relations team held 
222 meetings with investors (see page 43 for more detail on our 
engagement with shareholders). These meetings gave investors 
the opportunity to discuss views on all matters including:
– our strategy and competitive position in key markets
– our financial and operational performance
– capital investment (including FTTP and 5G)
– our capital allocation policy
– prospective governmental and regulatory policy decisions
– our pension fund valuation. 
– The Board is mindful of having two significant shareholders 
but considers any decisions it makes in the interests of all 
shareholders.
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Section 172 statement

Decisions made during the year
The following are some of the decisions made by the Board during the year which demonstrate how section 172 matters have been 
taken into account as part of Board discussions and decision making:
Decision
What happened
Sale of BT Tower 
to MCR London 
Holdings Limited 
During the year, the Board discussed in detail the proposal to sell the BT Tower to MCR London Holdings 
Limited, in particular: 
– the need for future investment in the maintenance of the BT Tower
– how this fits with the simplification of the group’s property portfolio
– the costs and timescale for exiting the BT Tower
– the plans that had been put in place to mitigate risks to the network functionality of the BT Tower 
– the approach that would be taken to relocate impacted colleagues who are currently based at the 
BT Tower 
– the brand association element of the transaction, including the risks associated with permitting the use 
of the BT brand and, if permitted, ensuring that relevant brand protections are in place
– the broader potential reputational impact of the sale.
On balance, the Board considered the long-term benefits of the sale, including the reduction in property 
running costs, and agreed that these outweighed any risks. Having carefully considered the transaction 
terms, in February 2024, the Board approved the sale of the BT Tower to MCR London Holdings Limited 
for £275m with an anticipated completion date in FY30.
BT Pension Scheme 
(BTPS) triennial 
valuation 
The Board was kept updated on negotiations with the BTPS Trustee on the triennial funding valuation as 
at 30 June 2023. This included consideration of the range of possible funding deficit outcomes and the 
associated deficit repair contributions. The Board was also reminded of its obligations under the Pension 
Schemes Act 2021 and the approach of the Pensions Regulator. 
The Board considered the contractual protections previously provided to the BTPS and their prospective 
suitability. Specifically, the Board considered the circumstances in which it would be obliged to make additional 
payments to the BTPS because of cash disposals, dividends or share buy-backs made. The Board also reviewed 
the stabiliser mechanism and co-investment vehicle established as part of the 30 June 2020 valuation, and 
considered the likelihood of additional payments being triggered and future refunds being received. 
The Board considered the group’s capital allocation framework and the associated impact on its 
key stakeholders. The Board noted the need to balance its objective to invest for growth, whilst supporting 
the BT pension funds, maintaining a strong balance sheet and rewarding investors through its progressive 
dividend policy. In October 2023, after careful consideration, the Board approved the proposed package 
of measures which would form the 2023 valuation. 
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Impacts of prior Board decision: funding of increased 
and accelerated FTTP build plan from 20m to 25m 
premises by December 2026
Summary of decision: In 2020, the Board approved the increase 
of our FTTP build to 20m premises, subject to the outcome of 
Ofcom’s Wholesale Fixed Telecoms Market Review (WFTMR). 
Post the WFTMR, in May 2021, the Board further approved an 
increased and accelerated FTTP build to 25m premises by the 
end of December 2026. This was a difficult decision and in 
making it, the Board considered competing stakeholder 
interests, including the benefits to our customers, colleagues and 
shareholders, the impact on communities and the desire to 
support the Government’s fibre ambitions.
Impacts and outcomes: As a result of this Board decision, our 
rollout of the FTTP network now passes 13.8m homes and 
businesses, helping to better connect our customers. This year, 
we passed an average of 68,000 premises per week. 4.7m 
customers have now moved across and are enjoying the service 
and benefits of full fibre.
Our full fibre network now also passes 3.9m rural premisesa, 
which has added value to local communities and helped bring 
people together, supporting our purpose of we connect for good. 
We brought full fibre broadband to Fair Isle, one of the UK’s most 
geographically remote islands and Openreach had to reroute the 
build by 100km, in order to avoid protected landscapes and bird 
nesting season.
As a result of this Board decision, our rollout of the FTTP 
network now passes 13.8m homes and businesses, helping 
to better connect our customers.
13.8m
a Rural premises are defined according to Ofcom’s Area 3 classification.

FY24 Board and 
Committee evaluation
In line with the Code, we annually undertake a formal and rigorous 
evaluation of the performance of the Board and its Committees, 
the Chairman and individual directors, which considers the Board’s 
composition, diversity and effectiveness. 
The last external evaluation was completed in 2021. Given the 
changing composition of the Board (including a new Chief 
Executive) we did not feel it was the right time for a once in three 
year external evaluation. We therefore engaged Lintstock Limited 
on a multi-year basis. Lintstock is an accredited Board 
Performance Reviewer of the Chartered Governance Institute, 
with no other links to the group. This year, they facilitated an 
evaluation of our Board and Committees via questionnaires. 
A more thorough, interview-based review by Lintstock, will take 
place in FY25, at which point there will be a more stable 
foundation in our Board to review and in turn, the evaluation will 
provide greater value in terms of forward looking focus areas.
FY24 Evaluation Process
Tailored questionnaires were circulated to members, regular 
attendees and the secretary of the Board and each of its 
Committees. The Executive Committee and CEO, Openreach 
also completed an evaluation to provide their perspectives on 
the effectiveness of, and relationship with, the Board. The 
evaluations were prepared by Lintstock in line with best 
practice. These focused on composition, dynamics, succession 
and how well-placed the Board is to add value to the business, 
in terms of how it oversees strategy, risk management, 
colleagues, culture and performance. Focus was also given to 
core areas of governance, the Board’s decision making 
processes, as well as how well it considers stakeholders as part 
of its discussions. 
The Senior Independent Director undertook a discussion 
with the other Non-Executive Directors and Deputy 
Company Secretary, without the Chairman present, to 
obtain their feedback and views of the Chairman’s 
performance during the year. The outcomes and 
recommendations were fed back to the Chairman.
Lintstock reflected on the responses and feedback, and 
compiled reports for the Board and each of the Committees, 
formulating a number of key observations and suggested 
priorities for the coming year, ensuring the anonymity of 
respondents was respected. 
See the table opposite for more detail.
Key areas of focus for 
FY25
Agreed actions/actions in progress
Support for the 
Chief Executive 
to focus on 
priorities 
Support Allison Kirkby in her role as Chief 
Executive with a focus on culture and talent.
Talent breakfasts have been scheduled with 
the Board in FY25 to enhance visibility of 
potential Executive Committee successors 
in an informal setting. 
Board 
composition 
Consider and appoint additional Non-
Executive Directors to the Board with 
financial, telecommunications and 
regulatory experience.
Tushar Morzaria was appointed as an 
Independent Non-Executive Director in 
May 2024. Tushar has gained strategic 
financial management experience over 25 
years and is a member of the Audit & Risk 
Committee with recent and relevant 
financial experience in line with the Code. 
He will also provide additional expertise on 
the Remuneration Committee.
The Board continues to consider potential 
Non-Executive Director appointments. 
Meeting time 
and focus areas 
Work is underway to reassess how time is 
dedicated at the Board and the 
Committees to:
– allow more time for culture, performance, 
transformation agenda
– reflect on the effectiveness of past 
decisions
– increase oversight of non-financial risks 
by the Audit & Risk Committee, including 
Speak Up reports and what these indicate 
in terms of the group’s culture
– arrange Board meetings or off-sites in 
different BT Group locations 
– increase Non-Executive Director only 
sessions.
The company secretarial team continues to 
work with the business units to improve the 
clarity of purpose of Board materials to best 
support the Board’s consideration of 
stakeholder interests in its decision making.
Commitments 
compliance and 
consumer 
fairness
Effectively transition the responsibilities 
from the BT Compliance Committee to the 
Audit & Risk and Responsible Business 
Committee including training and support 
for Committee members. 
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Board composition, succession and evaluation

Board induction
On appointment, Directors undertake a comprehensive induction 
programme designed to give them a thorough overview and 
understanding of the business. This is tailored to take into account 
the director’s previous experience, their responsibilities and, for 
each Non-Executive Director, the specific responsibilities relevant 
to their Committee memberships. The programme includes 
meetings with the Chairman, Board members, the Executive 
Committee and senior management. Directors also receive key 
information on our strategy and KPIs, governance framework, the 
regulatory framework in which we operate, recent financial 
performance, risk management and internal control systems and 
the policies supporting our business practices.
Directors are encouraged to visit our different hubs, contact 
centres and BT/EE retail shops, as well as spend a day with an 
Openreach engineer.
Details on the Board changes made during the year can be found 
in the Nominations Committee Chair’s Report on page 97. 
Maggie and Ruth’s inductions
Maggie and Ruth joined the Board on 1 March and 6 April 2023 
respectively as Independent Non-Executive Directors. Maggie is 
the Designated Non-Executive Director for Workforce 
Engagement and Ruth was appointed as Senior Independent 
Director and Chair of the Remuneration Committee from the 
conclusion of the 2023 AGM. Both Maggie and Ruth are members 
of the Nominations Committee, Maggie is a member of the 
Responsible Business Committee and Ruth is a member of the 
Audit & Risk Committee. 
Maggie and Ruth received an induction pack with key reference 
materials that provided them with a thorough understanding of 
BT Group, including the most recent financial results, information 
on our strategy and each of our business units, the governance 
framework, director responsibilities, ethical policies and 
the Commitments.
Throughout their first few months on the Board, Maggie and Ruth 
individually held a number of induction meetings including with 
the Chairman, Chief Executive, Chief Financial Officer, and 
members of the Executive Committee and key senior leaders, 
including the Director of Investor Relations, the heads of the 
business units, as well as the CEO, Openreach. The sessions 
included the following areas:
– Group Strategy
– Consumer
– Business 
– Openreach
– Corporate Affairs 
– Digital, Data & AI
– Security & Networks
– HR & our colleagues
– Financial processes, funding and risk management
– Regulatory context
– Governance.
In addition, Ruth met with the Group Director of Reward given her 
role as Chair of the Remuneration Committee and Matthew Key, in 
his capacity as Chair of the Audit & Risk Committee.
In May 2023, Maggie and Ruth joined Clive Selley, CEO, 
Openreach on an Openreach field visit in different locations across 
London and Essex, which provided them with a deeper insight into 
our fibre rollout and the experiences of colleagues in these roles. 
In February 2024, Maggie and Ruth visited our Tyneside and 
Gosforth contact centres. They met with a range of colleagues and 
benefitted from seeing our strategic plans for the customer facing, 
front line part of the business come to life. They listened in on 
customer calls and digital chats and were guest speakers at the 
two colleague town hall meetings where they had the opportunity 
to listen to colleagues and answer questions. For Maggie, as the 
new Designated Non-Executive Director for Workforce 
Engagement, this visit was invaluable in providing her with a better 
understanding of BT Group priorities and our strategy relating to 
colleagues. Further detail can be found in the colleague 
engagement section on page 90 to 91.
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The part that’s always the most 
impactful for me was seeing and 
experiencing our teams in action.
Maggie Chan Jones
Designated Non-Executive 
Director for Workforce Engagement
Maggie Chan Jones 
Designated Non-Executive 
Director for Workforce 
Engagement 
Ruth Cairnie
Senior Independent 
Non-Executive 
Director

This year, on behalf of the Board, the Committee led the process 
to appoint Allison as our new Chief Executive. We also welcomed 
new directors to the Board, Ruth, Raphael and Tushar. I look 
forward to supporting Allison and our newest Board members as 
we drive our long-term strategy to transform the group, ensuring 
it delivers for all our stakeholders.
Adam Crozier
Chair of the Nominations Committee 
15 May 2024 
Committee role
The Committee is responsible on behalf of the Board for reviewing:
– the structure, size and composition of the Board and its 
committees to ensure an appropriate balance of skills, 
experience, diversity, independence and knowledge
– succession planning for the Board and recommending the 
appointment of Executive and Non-Executive Directors and 
the Chairman
– succession planning and performance of the Executive 
Committee.
The Committee’s key responsibilities are set out in its terms 
of reference available at bt.com/governance
Committee membership and attendance
All Non-Executive Directors are members, with the Chief 
Executive attending meetings where appropriate. The Deputy 
Company Secretary is secretary to the Committee and he, or his 
delegate, attends all meetings and provides guidance, advice and 
support as required.
Committee members and attendees do not attend discussions 
where a conflict exists. During the year, five scheduled Committee 
meetings were held. After each meeting, as Chair, I reported back 
to the Board on the Committee’s activities.
Meetings attended
Adam Crozier (Chair)
5/5
Steven Guggenheimer e
4/5
Adel Al-Saleh a
3/4
Isabel Hudson
5/5
Ruth Cairnie b
4/4
Matthew Key
5/5
Maggie Chan Jones c
4/5
Allison Kirkby f
4/5
Ian Cheshire d
1/1
Raphael Kübler g
1/1
Iain Conn d
1/1
Sara Weller
5/5
a  Adel attended all bar one meeting where he was excused and he stepped down from 
the Board and this Committee on 31 December 2023.
b  Ruth joined the Board on 6 April 2023.
c   Maggie gave apologies for the September meeting due to a pre-existing conflict.
d  Ian and Iain stepped down from the Board and this Committee at the conclusion of the 
2023 AGM.
e  Steven gave apologies for the July meeting due to a pre-existing conflict.
f  Allison attended all Committee meetings during the year as a Non-Executive Director 
except for the July meeting where she was excused.
g  Raphael joined the Board and this Committee on 30 January 2024.
Details on the FY24 Board and Committee evaluation can be 
found on page 94.
Committee focus in FY24
Chief Executive appointment
As announced during the year, Philip Jansen informed the Board 
that he intended to step down from his role as BT Group Chief 
Executive. As a result, a sub-set of the Committee spent 
significant time building on the Board’s succession plans and 
focusing on appointing the next Chief Executive, which ultimately 
culminated in Allison’s appointment. 
In the first half of the year, we commenced a formal 
succession process to appoint the next Chief Executive, to 
succeed Philip Jansen. As Chairman, I led the process, with a 
sub-set of the Committee. Allison was not present for any of 
these discussions. 
Spencer Stuart, an independent external search agency, 
who has no other connection to the BT Group, or any of the 
Directors, was appointed to facilitate the process. Spencer 
Stuart is a signatory of the Voluntary Code of Conduct for 
Executive Search Firms (in line with our Board Diversity and 
Inclusion Policy).
Further to a discussion on the essential experience, 
leadership and personal characteristics, capabilities and 
skills required, and having considered the future needs of 
the business, a candidate profile was agreed. In line with 
that profile, a shortlist of appropriate, diverse candidates 
was considered. 
A comprehensive benchmarking, assessment and interview 
process was conducted. The sub-committee focused on 
understanding candidates’ approaches to the role of Chief 
Executive, their styles of leadership, and the culture they 
would foster throughout the organisation. It discussed 
feedback on the individuals and reflected on each of the 
shortlisted candidates based on their skills, capabilities and 
experience, against the role profile.
The Committee subsequently concluded that Allison was 
the preferred candidate to succeed Philip as Chief 
Executive, given her proven leadership, deep sector 
experience and history of having transformed businesses. 
Further to the Committee’s recommendation, in which they 
also considered her external commitments outside of this 
role, a sub-committee of the Board approved the 
appointment of Allison as Chief Executive. Allison became 
Chief Executive on 1 February 2024. 
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Board composition, succession and evaluation continued
Nominations Committee Chair’s report 

Non-Executive Director appointments
The Committee also spent time considering additional Non-
Executive Directors. Russell Reynolds Associates, an independent 
external search consultant, who has no other connection to the BT 
Group, and who is a signatory of the Voluntary Code of Conduct 
for Executive Search Firms, was engaged to assist with the search. 
In light of changes to the Board over the past year, the Committee 
prioritised the skills, experience and background when considering new 
Board appointments. As such, the search was predominantly for 
candidates with financial experience to supplement the capabilities of 
the Audit & Risk Committee, especially in light of Allison stepping down 
from the Committee on her appointment as Chief Executive, CEO 
experience potentially in a transformation focused role, and regulatory 
experience. As in all searches, diversity continued to be a key 
consideration. Russell Reynolds was tasked with enabling us to make 
appointments that meet the aims and targets of our Board Diversity 
and Inclusion Policy and related targets and succession planning. 
In line with the brief, the Committee agreed a shortlist of candidates 
with Russell Reynolds, with discussions held around ensuring the 
shortlist was diverse from both a gender and ethnicity perspective. A 
sub-set of the Committee was formed to lead the process, comprising 
of the Senior Independent Director (and Chair of the Remuneration 
Committee), and the Chairs of the Audit & Risk and Responsible 
Business Committees, as well as the Chief Executive. 
Further to a comprehensive benchmarking, assessment and interview 
process, the sub-committee discussed feedback and made its 
recommendation to the Board. In April 2024, on recommendation 
from the Committee, the Board approved in principle the 
appointment of Tushar Morzaria as an Independent Non-Executive 
Director. Final approval was delegated to the Chairman and Company 
Secretary and they subsequently approved Tushar’s appointment with 
effect from 7 May 2024. Tushar brings a wealth of strategic financial 
management experience to our Board, gained over 25 years where he 
has overseen transformation programmes and has strengthened risk 
and control frameworks. Tushar is a member of the Audit & Risk 
Committee and has recent and relevant financial experience in line 
with the Code, as well as being a member of this Committee and the 
Remuneration Committee. The Committee and the Board considered 
Tushar’s other external commitments as part of this appointment 
process and more details on this can be found opposite. 
Executive Committee succession planning and talent
Throughout the year, the Committee reviewed:
– and approved the creation of a new Executive Committee role 
reporting to the Chief Executive titled the Chief Strategy and 
Change Officer to lead a new Strategy and Change unit. The 
purpose of the Chief Strategy and Change Officer role is to:
– drive the development of BT Group’s corporate strategy
– ensure alignment of Unit strategies with the corporate strategy
– develop a single, aligned strategic narrative and equity story 
for BT Group
– define, drive and integrate critical, cross-Unit change 
programmes to deliver against the BT Group objectives.
– the performance and succession planning of Executive 
Committee members. The Committee continues to focus on 
broader Executive Committee succession planning, including 
oversight of the talent pipeline with a focus on diversity
– key talent at the senior leadership level. The Committee 
reflected on the importance of identifying critical roles and 
building stronger and broader diversity of experience, gender 
and ethnicity, as well as commercial, technology and 
transformation capabilities, both through potential external 
candidates and through our internal talent pipeline
– external appointments of Executive Committee members, in line with 
our policy on external interests for Executive Committee members 
(including Executive Directors) and the CEO, Openreach. Under this 
policy, proposed external directorships and other significant external 
interests must not be to an organisation that is a BT Group 
competitor/major supplier to BT Group, create a conflict of interest 
for the individual with their role at BT Group, involve significant 
amounts of BT Group working hours or impede the ability of the 
individual to perform their BT Group role, or involve disproportionate 
incentives or remuneration, with reference to the time commitment 
of the role. Any fees or other incentives arising from such 
appointments may be retained by the individual, subject to the 
amount being proportionate.
Time commitment
On accepting their appointment, Directors must confirm they are 
able to allocate sufficient time to discharge their responsibilities 
effectively. Directors are expected to attend meetings of the 
Board and any Committees of which they are members, as well as 
the AGM and Board off-sites. Directors are also expected to 
devote sufficient time to prepare for each meeting and to 
participate in other site or office visits to understand the business 
better. Before accepting new external appointments, directors are 
required to obtain the prior approval of the Board.
Before recommending that the Board approve the appointment of 
Allison Kirkby as Chief Executive, the Committee considered her 
other commitments, notably her directorship of Brookfield Asset 
Management Limited. The Committee considered the time 
commitment to be reasonable and was comfortable that Allison’s 
directorship at Brookfield would not affect her ability to dedicate 
sufficient time to the group in her new role as Chief Executive or 
create any conflicts of interest. It’s also within the overboarding 
guidelines published by proxy agencies.
The Committee also considered Simon Lowth’s proposed 
appointment to the Board of Smith & Nephew as an Independent 
Non-Executive Director and as a member of their Audit and 
Nomination & Governance Committees. The Committee 
considered the role and the time commitment it would require and 
was comfortable that Simon would still have sufficient time to dedicate 
to his role at BT Group if he was to take on this external commitment. 
As part of the Committee’s decision to appoint Tushar Morzaria to the 
Board, it thoroughly considered his other commitments, notably his 
roles as a Non-Executive Director of both Legal & General Group and 
BP. Tushar also chairs the Audit Committee for both companies. The 
Committee considered corporate governance guidance including the 
overboarding guidelines published by proxy agencies. On balance, 
both the Committee and the Board were comfortable that Tushar’s 
other commitments were acceptable and would not affect his ability 
to dedicate sufficient time to the group in his new role as a 
Independent Non-Executive Director or create any conflicts of 
interest. The Committee and the Board were in agreement that 
Tushar’s skills and experience would be a strong addition to the 
Board and proceeded to appoint him with effect from 7 May 2024. 
Election and re-election of directors
The Committee considered, in respect of each director, their skills and 
experience, time commitment and tenure as part of its recommendation 
to the Board in relation to the directors put forward for election or 
re-election at the AGM. The Board believes that each director it has 
recommended to shareholders for election or re-election at the 2024 
AGM brings considerable knowledge, wide-ranging skills and 
experience to the Board, makes an effective and valuable contribution 
and continues to demonstrate commitment to their role. 
On recommendation from the Committee, the Board also considered 
the continued independence of Non-Executive Directors as part of its 
consideration of the re-election recommendations. The Board continues 
to consider all Non-Executive Directors as being independent in line 
with the Code, with the exception of Deutsche Telekom’s nominated 
representative. The Chairman was judged to be independent at the 
time of his appointment.
Details of directors’ contracts or letters of appointment are in 
the Annual remuneration report on page 121.
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Training and development
The Chairman and the Company Secretary keep the training and 
development needs of Directors under review. Non-Executive 
Directors regularly meet with management, enhancing their 
understanding of the business through briefing sessions. We 
encourage all Directors to keep their skills and knowledge up to 
date and to ask for any support they need. As part of ongoing 
development, the Company Secretary (or her delegate) briefs the 
Board and its Committees at each meeting, as relevant, on any key 
legal, regulatory and corporate governance developments. During 
the year, these briefings included updates on the new Code, 
institutional investor guidelines, the FTSE Women Leaders 
Review, the Parker Review and other governance publications. 
Directors are updated as required on developments in the 
environment in which the group operates and internal and external 
advisers are invited to meetings to provide updates as necessary.
Openreach Limited Board succession
Under its remit, the Committee has a responsibility to consider 
changes to the Openreach Limited Board and recommend any 
changes to the BT Group Board for approval. During the year, the 
Committee noted that the Openreach Chair and Openreach Non-
Executive Directors continue to satisfy the independence criteria 
and should continue in their roles. 
Inclusion, equity and diversity
The Board Diversity and Inclusion Policy sets out our approach to 
diversity on the Board and our aim to have a well-balanced Board 
with the appropriate skills, knowledge, experience and diversity to 
meet our business needs and support our strategic aim of building 
the strongest foundations (see bt.com/governance). 
The policy ensures we:
– apply an inclusion lens to all our decision-making processes
– monitor the impact of our decisions on diverse populations
– value and communicate the benefits that difference brings and are 
unapologetic in our pursuit of a diverse workforce at all levels
– actively seek out opportunities across the business to enhance 
and strengthen our approach to inclusion. 
Whilst we appoint candidates based on merit, we continue to 
challenge our external search consultants to ensure that all forms 
of diversity are considered when drawing up candidate lists. This 
is a key consideration for our searches.
Diversity is considered in the broadest sense and all forms of 
difference are considered, including age, gender, nationality, 
independence, professional background, social and ethnic 
backgrounds, business and geographic experience, as well as 
cognitive and personal strengths. These are considered in reviewing 
the composition of the Board and, where possible, are appropriately 
balanced. We believe a key driver in delivering our diversity 
commitments across the organisation is through a Board which has 
this balance of skills, experience, diversity and knowledge.
As at 31 March 2024, five of our ten Board directors were female 
(50%), two directors were from an ethnic minority background 
(20%), and one director has a disability. 
Ruth Cairnie’s appointment during the year as Senior Independent 
Non-Executive Director ensures that we meet the requirements of the 
Listing Rules to have female representation in at least one of the four 
senior board positions. This position was reinforced by Allison’s 
appointment as Chief Executive from 1 February 2024, meaning that 
half of the four senior board positions are now held by women. 
Details of the group’s inclusion, equity and diversity strategy, 
including its objectives, implementation and progress can be found 
on pages 31 to 33. 
Chairman and Non-Executive Directors’ tenure: 
As at 31 March 2024
Chairman and Non-Executive Directors’ tenure: 
Post 2024 AGM
BT Group plc Board
Senior positions on the Board 
(CEO, CFO, SID and Chair)
Executive management 
(Executive Committee, 
including the Executive 
Directors and the CEO, 
Openreach)
as at 
31 March 2024
post 
2024 AGM
as at 
31 March 2024
post 
2024 AGM
Gender
Male 
5 (50%)
6 (60%)
2
2
6 (60%)
Female 
5 (50%)
4 (40%)
2
2
4 (40%)
Ethnicity 
Asian/Asian British
1 (10%)
2 (20%)
1 (10%)
Mixed/multiple ethnic groups
1 (10%)
1 (10%)
1 (10%)
White British or other White background a
8 (80%)
7 (70%)
4
4
8 (80%)
Disability
1
1
1 
Senior leaders b
Female
28 (33%)
Male
56 (67%)
a This includes the Minority-white group.
b This includes the Executive Committee, including the Company Secretary and CEO, Openreach and their direct reports (excluding the Executive Directors).
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Nominations Committee Chair’s report continued

This year, the Committee has continued to focus its oversight on 
the group’s risk, control and assurance framework and has also 
spent considerable time scrutinising the major legal claims the 
BT Group is facing.
Matthew Key 
Chair of the Audit & Risk Committee 
15 May 2024 
Committee role
The Committee is responsible on behalf of the Board for:
– monitoring the integrity of the financial statements and 
overseeing the financial reporting process
– reviewing the effectiveness of the group’s systems of risk 
management and internal control
– reviewing the effectiveness of the internal audit function
– approving the appointment, reappointment, remuneration 
of the external auditor, as well as the terms of the engagement 
and the provision of any non-audit services, overseeing the 
external auditor’s independence and effectiveness in 
delivering a quality audit.
From 1 April 2024, and following the disbanding of the                       
BT Compliance Committee, the Committee’s remit expanded to 
include oversight of the group’s compliance with the 
Commitments. Further detail on how the Committee has fulfilled 
these responsibilities will be included in next year’s report. 
The Committee’s key responsibilities are set out in its terms 
of reference available at bt.com/governance
Committee membership and attendance
The Committee members are all Independent Non-Executive 
Directors with a range of skills, and the Committee as a whole has 
experience relevant to the sector and acts independently of 
management. Throughout the year, Allison attended all 
Committee meetings in her capacity as a Non-Executive Director 
and both she and I have recent and relevant business and financial 
experience, in line with the Code, as set out in our biographies. 
Allison stepped down from the Committee on her appointment as 
Chief Executive in February 2024. Tushar Morzaria was appointed 
to the Board and this Committee in May 2024 and has recent and 
relevant financial experience. The Deputy Company Secretary is 
secretary to the Committee and he, or his delegate, attends all 
meetings and provides guidance, advice and support as required. 
The Chairman, Chief Executive and Chief Financial Officer attend 
Committee meetings as required.
Private Committee sessions with the Non-Executive Directors and 
the internal and external auditor were held at each meeting 
without management being present. The external auditor was not 
present at meetings where their performance and/or their 
remuneration was discussed.
Meetings attended
Matthew Key (Chair)
6/6
Iain Conn b
2/2
Ruth Cairnie a
5/5
Allison Kirkby c
6/6
Ian Cheshire b
2/2
Sara Weller
6/6
a  Ruth joined the Committee on her appointment to the Board on 6 April 2023.
b Ian and Iain stepped down from the Board and this Committee at the conclusion of the 
2023 AGM.
c  Allison ceased being a member of the Committee when she became Chief Executive 
on 1 February 2024 but still attends meetings in her capacity as Chief Executive.
Other attendee (x Regular attendee • Attends as required)
Chief Executive
×
Chief Financial Officer
×
Director of External Reporting and Financial Control
×
Director of Group Internal Audit and Group Risk
×
General Counsel, Company Secretary & Director 
Regulatory Affairs 
×
Group Risk Director
•
General Counsel, People, Ethics & Compliance
•
Details on the FY24 Board and Committee evaluation can be 
found on page 94.
Committee focus in FY24
The Committee met six times this year. As Committee Chair, I met 
with the KPMG lead audit partner, Director of Group Internal Audit 
and Group Risk, and management as appropriate ahead of 
meetings to discuss specific items of focus to report to the 
Committee. After each meeting, I also reported back to the Board 
on the Committee’s activities, the main issues discussed and 
matters of particular relevance, with the Board receiving copies of 
the Committee’s meeting papers and minutes.
Financial reporting
During the year, the Committee considered the full year and half 
year results, and the Q1 and Q3 trading updates. It reviewed the 
quality of accounting policies and practices, as well as critical 
accounting estimates and judgements.
The Committee considered, and was satisfied with:
– the processes supporting the preparation and consolidation of 
the financial statements, including consistent application of the 
accounting policies, and the ongoing verification by 
management and the external auditor
– management’s accounting judgements and the appropriate 
application of the accounting policies, having also discussed 
these with the external auditor.
The Committee exercised its judgement when considering matters 
related to the financial statements, and recommended approval 
by the Board of each of our full year and half year results, Q1 and 
Q3 trading updates and the Annual Report.
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Audit, risk and internal control
Audit & Risk Committee Chair’s Report 

Overview of the year
Focus
Considered by the Committee
2023
2024
Apr
May
Jul
Sep
Oct
Jan
Financial reporting
– Results/trading updates and accounting judgements
– Annual Report 2023
– Regulatory financial statements 
– Going concern assessment
– Viability statement
Litigation and major contentious matters
Internal controls over financial reporting
GRCs and CFU risk reviews: point and emerging risks
Report from Openreach Board, Audit, Risk & Compliance Committee chair 
Compliance with Code requirements – risk management framework
Ethics & compliance
– Ethics & compliance programmes
– Speak Up (whistleblowing) reports
Internal audit
– Internal audit report
– FY24 group internal audit plan and approach
– Group internal audit charter
– Effectiveness
External audit – KPMG
– External audit report
– External audit plan
– Audit and non-audit fees
– Effectiveness
– Independence and reappointment
Fair, balanced and understandable
In May 2024, the Committee reviewed the Annual Report 2024 
having previously fed back on earlier drafts. The Committee 
concluded that the Annual Report, taken as a whole, was fair, 
balanced and understandable and provided the information 
necessary for shareholders to assess the group’s position, 
performance, business model and strategy, and the potential 
impact on forward-looking assumptions supporting going 
concern and viability assessments. 
In its assessment, it considered that the following had been carried 
out and this formed the basis of its recommendation to the Board:
– a verification process covering the factual content reviewed 
by the internal audit team
– comprehensive reviews by different levels of management, 
including the Executive Committee, to consider the messaging 
and ensure consistency and overall balance
– independent reviews by the external auditor which did not 
highlight any material inconsistencies.
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Audit, risk and internal control continued
Audit & Risk Committee Chair’s Report continued

Significant matters related to the financial statements 
and how these were addressed:
Group accounting policies, critical and key accounting 
estimates and significant judgements
The Committee considered the accounting policies and disclosures in 
the consolidated financial statements regarding critical and key 
accounting estimates and significant judgements as summarised 
in note 2 of the financial statements. These include the estimate of 
our customer refund liability, our goodwill impairment assessment, 
determining the point of sale of BT Tower, the valuation of our 
pensions assets and liabilities, taxation, contingent liabilities 
associated with litigation, provisions, determination of lease terms 
including reasonable certainty, and valuation of investments in the 
Sports joint venture. More detail on the Committee’s oversight of 
these matters is set out below where appropriate.
Going concern assessment
The Committee considered management’s forecasts of group 
cash flows and net debt, as well as the group’s liquidity 
requirements and borrowing facilities, including downside 
scenarios from the viability model as discussed below. Following 
this review and a discussion of the sensitivities, it confirmed that 
the going concern basis of accounting continues to be an 
appropriate basis of preparation for the financial statements 
and ecommended it for approval by the Board. See page 126.
Viability statement
The Committee reviewed the process and assessment of the 
group’s prospects, taking into account the group’s current position 
and principal risks. The Committee also considered the group risks 
in management’s stress testing model, including the review of 
downside scenarios and a combined ‘severe but plausible’ scenario 
where multiple interconnected risks materialise. The Committee 
was satisfied that the viability statement could be provided and 
recommended it for approval by the Board. See pages 81 to 82.
Litigation provisions and contingent liabilities
The Committee reviewed contingent liabilities associated with 
litigation and major contentious matters throughout the year. 
There has been a noted increase in the value of the gross risk 
faced by the Group, which is largely as a result of the increasing 
prevalence of collective proceedings (sometimes known as class 
actions) in the UK. During the year, the Committee has placed 
particular focus on understanding and scrutinising legal 
assessments by the Group’s external and internal legal advisers 
of the claims that have materialised, to ensure the adequacy 
of its provisions.
Business revenue
The Committee considered and discussed the risk of billing 
inaccuracy and control deficiencies that had been identified in 
Business in relation to legacy systems and processes. They 
discussed the impact of these including potential customer 
impacts. The Committee also spent time understanding the 
associated potential revenue risk, the root causes, the approach 
to prioritise a remediation plan and considered the different 
approaches of estimating what the potential liability may be. 
The Committee considered and was satisfied with the judgements 
for the liability.
Goodwill impairment
The Committee received and discussed the key assumptions, 
operating cash flow forecasts, resulting headroom or impairment 
and the sensitivity analysis performed by management. They 
spent time understanding the balance of the plans and the 
uncertainty around the different judgements contained within it. 
The Committee considered and was satisfied with the key 
assumptions and agreed that a goodwill impairment charge was 
required in FY24 for Business.
BT Tower
The Committee considered the accounting for the sale of BT Tower, 
including the judgement made in concluding that control of the Tower 
passes to the buyer on completion of the sale and transfer of legal title, 
rather than on exchange of contracts in FY24. 
Sports joint venture
The Committee reviewed the judgements in relation to the 
sports joint venture with Warner Bros. Discovery, Inc., which has 
been in place for over 12 months, including assessments of the JV 
business performance, cash flow forecasts and the valuation of 
BT Group’s interest in the JV. 
Pensions
The Committee considered the assumptions and judgements 
underlying the valuation of the pension assets and liabilities in the 
financial statements, as summarised in note 19 to the consolidated 
financial statements. It also considered the range of reasonable 
assumptions and the associated impacts on the balance sheet, 
income statement and related disclosures.
Divestments
The Committee reviewed the judgements made in relation to the 
group’s divestments, including on whether the held for sale criteria 
had been satisfied, and how goodwill should be allocated to 
divested or held for sale entities.
Regulatory finance reporting
The Committee supported the processes and systems 
enhancements that were implemented to ensure that the group 
met its 2024 regulatory financial reporting obligations.
Other matters
The Committee reviewed specific items quarterly, and 
considered and agreed that they were appropriately categorised. 
It considered management’s view of the quality of earnings, 
definition of alternative performance measures and of the 
effective tax rate. It also challenged the phasing of working 
capital within normalised free cash flow. At each quarter, it 
considered a detailed assessment of provisions, and the 
Committee was satisfied with the analysis provided in relation 
to the results.
BT Group plc Annual Report 2024
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Corporate governance report

Risk management and internal controls systems
The group has continued to enhance its risk, control and assurance 
framework. This framework provides the tools to enable us to be 
smart with risk and to manage enduring risks consistently and 
efficiently across the group. 
Further information on our risk management framework and 
principal risks can be found on pages 61 to 70.
The framework divides the risk landscape into areas of enduring 
risk called Group Risks Categories (GRCs), which cover strategic, 
financial, operational and compliance risks. The Board monitored 
the effectiveness of the group’s systems of risk management and 
internal controls through reviews of the GRCs and consideration of 
reports from management, as well as from internal audit and other 
assurance functions. Much of this work was undertaken by this 
Committee on the Board’s behalf. Given that the Board is 
ultimately responsible for the group’s systems of risk management 
and internal controls, as Chair, I subsequently reported the key 
matters from each of these sessions to the Board.
The activities carried out during the year, collectively enable 
the Committee to confirm that the group’s systems of risk 
management and internal control have been appropriately 
reviewed. Where required, targeted improvements have been 
planned or agreed to continue to transform our control 
environment and to appropriately manage risks. As part of its 
drive for continuous improvement, the Committee has overseen 
ongoing enhancements to the risk management framework. 
Further information on improvements being made to the overall 
risk management framework, as well as specific actions taken to 
manage our principal risks can be found on pages 61 to 62.
The Committee held discussions on the GRCs with the Executive 
Committee risk owners to understand current and anticipated risk 
developments, and reviewed how effectively the risks are being 
managed. It considered the risk appetite and its supporting 
metrics for the GRCs, the effectiveness of the controls, mitigation 
activities and any areas for improvement. The Committee robustly 
assessed both current, specific concerns (point risks) and 
uncertainties that may materialise in the future (emerging risks), 
particularly as a consequence of adverse changes to the 
economic, social, regulatory, political or technology environment, 
or as an unintended consequence of new products and services 
being offered or developed by the group. The Committee agreed 
with management any actions required to manage or mitigate 
these risks effectively.
In addition, with the CFU and CU CEOs, the Committee undertook 
unit risk reviews of Consumer, Business and Openreach, as well as 
Digital and Networks, which cover how the GRCs are being 
managed in the respective units, and the significant point and 
emerging risks.
As well as the rolling programme of reviewing the GRCs and units, 
the Committee received updates on specific matters including 
supply chain and geopolitical risks in specific jurisdictions and our 
group-wide data programme.
Ethics and compliance
The Committee considered regular reports on our ethics and 
compliance policies, and programmes and related learnings and 
culture. It spent time discussing anti-bribery and corruption, 
communications regulation compliance and the enhancement 
programme in relation to international trade, in line with the 
respective GRCs.
Each quarter, the Committee received and reviewed reports on 
concerns raised through the Speak Up service, BT Group’s 
confidential whistleblowing services operated by an independent 
company, 24 hours a day, in multiple languages, for both written 
and telephone reports. The Committee ensures that 
arrangements are in place for the proportionate and 
independent investigation of these and other matters via the 
ethics and relevant subject matter expert team. 
Internal audit
Internal audit provides independent, objective and timely 
assurance to senior management and the Board, through this 
Committee, over the design and operational effectiveness of 
key processes and controls that manage the risks across 
the organisation.
During the year, the Committee:
– reviewed and approved the group internal audit annual plan, 
ensuring it aligned to the principal risks of the business
– reviewed the internal audit charter, which establishes internal 
audit’s independence, authority, remit and reporting lines to 
conduct its work
– received regular reports from internal audit on its activities 
and progress against the group internal audit plan, allowing 
the Committee to monitor delivery against the plan
– held in-depth discussions with management on all internal audit 
reports where controls were assessed as ‘inadequate’, and 
action plans to address these. The actions were tracked by the 
Committee, including the responsiveness of management to the 
findings and recommendations, and the progress of closing any 
overdue actions.
An internal audit effectiveness review was completed during the 
year by the new Director of Group Internal Audit and Group Risk 
with support from a third party. Actions were agreed to ensure the 
function continues to develop. Based on this and the Committee’s 
annual assessment of the performance and effectiveness of the 
function, the Committee concluded that internal audit continues to 
add value in the context of the group’s overall assurance framework. 
External audit
The Committee is responsible for making recommendations 
to the Board on the reappointment of the external auditor, 
determining their independence from the group and its 
management and agreeing the scope and fee for the audit. The 
Committee concluded that the reappointment of KPMG should 
be recommended to shareholders at the 2024 AGM.
Following the audit tender in FY17, KPMG was appointed as 
BT Group’s external auditor from the conclusion of the 2018 AGM. 
The FY24 audit is KPMG’s sixth audit of BT Group. Following a 
thorough review of potential candidates put forward by KPMG 
to succeed John Luke as lead audit partner, the Committee 
approved the appointment of Jon Mills as the KPMG lead audit 
partner for the BT Group with effect from the start of FY24. 
During the year, the Committee:
– considered and approved the proposed external audit fees for 
the year ended 31 March 2024, including one-off fees, as well as 
the recurring audit fee for the regulatory financial statements 
and the interim review fee (see the Independent auditor’s report 
on pages 132 to 143 for more details)
– reviewed with the external auditor, the external auditor’s scope 
of work, audit plan and strategy for FY24
– approved the engagement letter of the external auditor
– recommended approval by the Board of management’s letters 
of representation.
BT Group plc Annual Report 2024
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Corporate governance report
Audit, risk and internal control continued
Audit & Risk Committee Chair’s Report continued

As part of my year-end report to the Board, I informed the Board 
of the outcome of the external audit.
BT Group confirms that it complies with the EU Regulation on 
Audit Reform and the Competition and Markets Authority’s 
Statutory Audit Services Order with regard to mandatory auditor 
rotation and tendering.
Independence and non-audit services
The Committee discussed the external auditor’s independence 
and potential areas that could give rise to a conflict of interest, 
and considered the safeguards in place to prevent compromising 
their independence and objectivity. In particular, the Committee 
considered BT’s provision of network and mobile services to 
KPMG UK, including KPMG’s assessment and conclusion of 
independence. The Committee considered this and confirmed its 
agreement that the provision of these services to KPMG is not 
material from an independence perspective.
BT Group’s non-audit services policy sets out the non-audit 
services that can be provided by the external auditor, in line with 
the latest ethical standards. The external auditor is not permitted 
to perform any work which they may later be required to audit, or 
which might affect their objectivity and independence, or create 
a conflict of interest. Internal procedures describe the approval 
process for work performed by the external auditor, and these 
applied to KPMG throughout the year. The Committee monitored 
compliance with the policies and procedures and considered 
business relationships with the external auditor, and the level and 
appropriateness of non-audit services and fees. The Committee 
will continue to keep under review BT Group’s non-audit 
services policy.
Our non-audit services policy can be found at bt.com/
governance
The Committee reviewed the confirmation and information 
received from the external auditor on the arrangements that it has 
in place to safeguard auditor independence and objectivity, which 
are consistent with the ethical standards published by the FRC, 
including specific safeguards where they provide permissible non-
audit services to the group. The nature of the non-audit services 
carried out by the external auditor during the year are described in 
note 8 to the consolidated financial statements on page 161. 
These were required by law or regulation to be carried out by an 
appointed auditor and services that support us to fulfil obligations 
required by law or regulation, contractual requirements, or 
represented areas of assurance work where it was materially more 
efficient for the external auditor to be engaged, as opposed to 
another third party due to the work completed in relation to the 
audit, and which were permitted to be performed by an auditor 
under the Revised Ethical Standard 2019. 
Audit-related assurance services, as well as any approved non-
audit services performed by KPMG, are considered a low threat 
to auditor independence. Non-audit services are predominantly 
made up of audit-related assurance services, such as the audit of 
the regulatory financial statements, the interim review and 
providing comfort letters for bond issuances. This work falls within 
the scope of limited permissible services, which are closely related 
to existing audit work that KPMG provides. Therefore the 
proportion of ‘other non-audit services’ to ‘total services’ 
carried out by the external auditor is considered the most suitable 
measure of the non-audit services provided. These represented 
0.1% of the total fees (FY23: 0.2%).
External auditor 
effectiveness and quality
Scope
The Committee assesses the effectiveness of the external 
audit process and the qualifications, expertise, resources, 
independence and objectivity of the external auditor, 
including the nature and extent of non-audit services 
throughout the year, focusing on:
– the quality of the audit and the financial reporting 
process, including how effective the external auditor is at 
identifying and addressing matters that could 
compromise the quality of BT Group’s reporting
– the service of the external auditor and the relationships 
with the Committee, key members of management and 
the internal auditor
– whether the external auditor has demonstrated 
professional scepticism
– whether the external auditor has challenged 
management’s assumptions where necessary.
Review process
The Committee reviewed the audit scope and plan at the 
start of the year, and received regular audit reports from the 
external auditor. This enabled the Committee to assess the 
quality of audit work. The Committee had the opportunity 
to interact with the external auditor at meetings as well as to 
observe the communication and interactions between the 
external auditor with management and the internal auditor. 
The Committee reviewed and monitored management’s 
responsiveness to the external auditor’s requests for 
information and its findings and recommendations. The 
Committee Chair also regularly met with the lead audit 
partner.
During the year, a questionnaire was also completed by the 
Committee members and management to gather their 
perspectives on the effectiveness and quality of the external 
auditor’s work.
Conclusion
In conclusion, the Committee agreed that:
– the audit contributed to the integrity of the group’s 
financial reporting
– the relationship between KPMG and both the Committee 
and management continues to be effective
– KPMG demonstrated an appropriate degree of 
professional scepticism and deployed a team with the 
required level of skill and expertise to enable an 
effective audit
– the audit strategy and plan was appropriately scoped, 
communicated and executed
– KPMG continues to be independent, and recommended to 
the Board that the reappointment of KPMG, as our external 
auditor, be put to our shareholders for approval at the 2024 
AGM (this was subsequently approved by the Board).
BT Group plc Annual Report 2024
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Corporate governance report

We have continued to engage with scrutinising the culture and 
behaviour of BT Group to ensure it remains focused on living up 
to both the letter and spirit of the Commitments and governance 
protocol, as well as to ensure consumer fairness principles are 
considered and reflected in the delivery of key outcomes. 
Isabel Hudson 
Chair of the BT Compliance Committee 
15 May 2024 
Committee role
The Committee was responsible for:
– monitoring BT Group’s compliance with the letter and spirit 
of the Commitments made as part of the 2017 Digital 
Communications Review (DCR) with Ofcom
– assessing whether Openreach can act with appropriate 
independence while BT Group is able to fulfil its parent company 
duties
– overseeing consumer fairness matters and developing internal 
fair pricing principles on behalf of the Board by monitoring 
whether BT Group is living up to Ofcom’s Fairness for Customers 
commitments
– reviewing how BT Group is delivering appropriate outcomes for 
stakeholders across the Commitments and consumer fairness.
I will be stepping down from the Board in July, after serving for 
nine years, and this will therefore be my last report as Chair of the 
Committee. From 1 April 2024, the Committee’s responsibilities 
transitioned to both the Audit & Risk and Responsible Business 
Committees. The Audit & Risk Committee is now responsible for 
overseeing compliance with the Commitments and the 
Responsible Business Committee’s remit expanded to include 
consumer fairness. Next year’s Annual Report will provide detail on 
how this has been achieved in FY25. 
Committee membership and attendance
During the year, the Committee met five times. The Committee 
members are all Independent Non-Executive Directors. The 
Deputy Company Secretary was secretary to the Committee, and 
he, or his delegate, attended all meetings and provided guidance, 
advice and support as required. The Chair of the Board, General 
Counsel, Company Secretary & Director Regulatory Affairs, 
Commitments Assurance Office Director (CAO), and Openreach’s 
Commitments Monitoring Office Director also attended meetings 
as invitees.
Meetings attended
Isabel Hudson (Chair)
5/5
Allison Kirkby b
5/5
Ian Cheshire a
1/1
Sara Weller
5/5
a  Ian stepped down from the Board and this Committee at the conclusion of the 2023 
AGM
b  Allison attended all meetings during the year in her role as a Non-Executive Director 
I reported to the Board after each meeting on the Committee’s 
activities and the main issues discussed, with the Board receiving 
copies of the Committee’s meeting papers and minutes. Ofcom 
also received copies of the minutes. Details on how we engage 
with Ofcom can be found on page 45. 
Committee focus in FY24:
Compliance with the Commitments
The Committee’s monitoring activities focused on:
– the culture of adherence of BT Group’s leadership 
to the Commitments
– stakeholder perceptions by engagement with industry 
stakeholders, including CPs, Ofcom and Openreach
– the CAO’s reviews of the annual financial planning, strategy 
development and commercial pricing and product processes
– targeted reviews of governance for programmes across 
the group
– the outcomes of CAO compliance reviews, decisions on 
potential Commitments breaches and, where appropriate, 
remedial actions. Breaches continue to remain at a low level
– BT Group and Openreach’s progress on wider DCR outcomes.
Consumer fairness matters
The Committee allocated significant time during the year 
to its consumer fairness remit, including:
– the transition to All IP and the migration of Digital Voice 
(see page 3)
– encouraging the formation of pricing principles for the EE brand 
(see page 58)
– year-on-year consumer fairness trends (see page 41) as well 
as outputs from the group’s consumer fairness panel meetings.
BT Group plc Annual Report 2024
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Corporate governance report
BT Compliance Committee Chair’s report

This year the Committee has overseen progress on our Manifesto 
commitments and how they are being accelerated across the 
business to maintain trust in BT Group.
Sara Weller 
Chair of the Responsible Business Committee 
15 May 2024
Committee role 
The Committee is responsible on behalf of the Board for: 
– agreeing the responsible business strategy for the group 
– overseeing the continuation of our Manifesto including progress 
against its goals and targets. 
The Committee’s key responsibilities are set out in its terms 
of reference available at bt.com/governance
BT Group has continued to focus on how our actions as a 
responsible business can most effectively support customers, 
colleagues and businesses. Throughout the year the Committee 
has overseen progress on our Manifesto and its delivery across 
the business, providing guidance and challenge to the plans. 
In April 2023, the Committee name changed to the Responsible 
Business Committee to reflect the full breadth of initiatives that 
are discussed and reported in our Manifesto. With effect from 
1 April 2024, in light of the BT Compliance Committee being 
disbanded, the Committee has responsibility for consumer 
fairness. This includes monitoring the group’s adherence to the 
consumer fairness principles. The BT Compliance Committee 
Chair’s report can be found on page 104. 
Committee membership and attendance
The Committee members are all Independent Non-Executive 
Directors. The Deputy Company Secretary is secretary to the 
Committee and he, or his delegate, attends all meetings and 
provides guidance, advice and support as required. 
The Chief Human Resources Officer, Corporate Affairs Director, 
Sustainability & Corporate Affairs Strategy Director, Chief 
Inclusion, Equity & Diversity Officer, CEO Consumer, CEO Business 
and General Counsel, Corporate, Digital & Networks also attend 
meetings as invitees. 
During the year, the Committee held four scheduled meetings. 
Meetings attended
Sara Weller (Chair)
4/4
Steven Guggenheimer 4/4
Maggie Chan Jones
4/4
Isabel Hudson
4/4
I report to the Board after each meeting on the Committee’s 
activities and the main matters discussed, with the Board receiving 
copies of the Committee’s meeting papers and minutes. 
Details on the FY24 Board and Committee evaluation can be 
found on page 94.
Committee focus in FY24 
The Committee continued to monitor progress of our Manifesto 
and priorities under the core pillars: responsible, inclusive and 
sustainable. More information can be found on pages 34 to 39. 
Responsible: new technology must earn trust and transform life 
for the better. The Committee: 
– provided challenge to explore how generative AI can be used to 
build trust, support growth and reduce risk relating to its adoption
– reviewed the application of BT Group’s responsible tech 
principles to help protect vulnerable groups such as children
– endorsed BT Group’s human rights policy.
Inclusive: the future of technology must be inclusive and diverse 
for everyone to benefit. The Committee: 
– discussed the importance of attracting and retaining diverse talent, 
providing input to plans to create a more inclusive culture - aided by 
the appointment of a Chief Inclusion, Equity & Diversity Officer 
– oversaw progress on our digital skills goal and the launch of a 
new partnership with AbilityNet to reach older and digitally-
excluded groups. More information on our digital skills goals can 
be found on page 35. 
Sustainable: technology must accelerate our journey to net zero 
emissions and a circular world. The Committee: 
– reviewed progress on sustainability goals including those 
forming part of the Restricted Share Plan underpin – see 
page 109
– oversaw plans to reduce the operational emissions including 
risks relating to energy and an update from Openreach on 
electric vehicles
– discussed sustainability plans in Consumer, Business and 
Openreach, including the shift towards a more circular world
– explored progress on the carbon abatement methodology 
and how this supports customers to cut carbon emissions, with 
a challenge to make sure the methodology used was robust 
and transparent. 
Regulatory reporting
The Committee considered the rapidly evolving regulatory 
landscape and the impact new reporting requirements will have 
on the group including impacts on resourcing given the increase 
in the scope and scale of reporting. The Committee oversaw the 
preparation for these requirements and the opportunity for this to 
be used to drive greater consistency, accuracy and transparency. 
Stakeholder engagement
The Committee considered the interests and views of key 
stakeholders and how these are reflected in the group’s approach 
to responsible business. The Committee will continue to focus on 
engaging with stakeholders in the future, especially given changes 
in the regulatory reporting landscape. 
BT Sourced
The Committee assessed how environmental risks and human 
rights due diligence is being managed across the supply chain, 
including steps taken to positively influence suppliers’ contribution 
to environmental and social goals. 
Priorities for FY25
In the year ahead, in addition to its oversight of our Manifesto, 
the Committee will focus on: 
– integration of, and progress on, the consumer fairness agenda 
– progress in responding to new regulatory ESG reporting 
requirements. 
BT Group plc Annual Report 2024
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Corporate governance report
Responsible Business Committee Chair’s report 

As well as the usual annual decisions, a key task for the 
Committee this year was handling the change in Chief Executive 
and ensuring our approach took account of all relevant angles to 
support the ongoing success of the business. We also remained 
acutely aware of the cost pressures many of our colleagues face.
Ruth Cairnie 
Chair of the Remuneration Committee 
15 May 2024 
Contents
Committee Chair’s letter
Review of the year; Committee decisions; key outturns and 
plans for the year ahead – pages 106 to 109.
Focus on remuneration
The key aspects of our remuneration structure, outcomes for 
FY24 and implementation of the shareholder approved 
Directors’ Remuneration Policy (Policy) in FY25 – pages 110 
to 112.
Annual remuneration report
More detail on how we implemented the Policy during FY24 
including the single figure table of remuneration for each 
director – pages 113 to 121.
Remuneration in context
How we take account of remuneration conditions across the 
group and the environment in which the Committee makes it 
decisions on executive pay – pages 122 to 124.
Committee membership and attendance
The Committee members are all Independent Non-Executive 
Directors. The Deputy Company Secretary is secretary to the 
Committee and he, or his delegate, attends all meetings and 
provides guidance, advice and support as required.
The Chairman, Chief Executive, Chief Human Resources Officer, 
Director of Group Reward and the Executive Remuneration & 
Policy Director are typically invited to attend meetings. They are 
not present when their own remuneration is discussed or in other 
circumstances where their attendance would not be appropriate.  
Deloitte LLP, as the independent remuneration adviser to the 
Committee, also attends meetings.
The Committee held five scheduled meetings during the year and 
one ad hoc meeting.  After each meeting, I reported back to the 
Board on the Committee’s activities and the main issues discussed.
Meetings attended
Ruth Cairnie (Chair)a
4/4
Isabel Hudsonc
4/5
Ian Cheshireb
2/2
Matthew Key
5/5
Iain Connb
2/2
a Ruth joined the Board and the Committee on 6 April 2023.
b Ian and Iain stepped down from the Board and the Committee at the conclusion of the 
AGM on 13 July 2023.
c Isabel sent apologies for one meeting due to a personal matter and provided 
comments on the papers to the Committee Chair in advance.
Tushar Morzaria joined the Board and the Committee on 7 May 
2024. 
Committee role
The Committee is responsible on behalf of the Board for:
– Determining the salary and benefits for the Chairman, Executive 
Directors, members of the Executive Committee and the 
Company Secretary, and monitoring remuneration practices 
and policies for the wider workforce
– Setting the performance targets for the annual bonus scheme 
for senior executives for the year ahead
– Determining awards under the annual bonus scheme and the 
group’s long-term incentive plans for senior executives
– Reviewing and approving the Report on directors’ remuneration
– Reviewing and approving the Policy including seeking shareholder 
approval, on a binding basis, at least every three years
– Ensuring that all remuneration decisions are made within the 
parameters of the approved Policy and align with our reward 
philosophy and our values. No senior executive is involved in any 
decision about their own remuneration.
The Committee’s key responsibilities are set out in its terms of 
reference available at bt.com/governance
BT Group plc Annual Report 2024
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Corporate governance report
Report on directors’ remuneration

On behalf of the Committee I’d like to start by thanking Sir Ian 
Cheshire, the former Committee Chair, for a smooth handover and 
for securing shareholder support for our Policy at the 2023 Annual 
General Meeting (AGM). I intend to continue the work of the 
Committee by supporting our new Chief Executive and the 
executive team in realising the group’s long term strategic goals. 
This report sets out information on the Committee’s activities 
during the year, our remuneration framework and its 
implementation.  I’ve also provided further context on the 
performance of the business throughout the year and the 
environment in which the Committee made decisions on 
executive pay.
Stakeholder context
Wider workforce pay and conditions 
As reported last year, we accelerated part of our 2023 pay review 
and delivered a £1,500 pay rise in January 2023 to support 85% of 
our UK colleagues (all of those earning a £50,000 full-time 
equivalent salary or below) during the cost-of-living crisis. This 
cohort received a further salary increase of at least 2.5% in 
September 2023, while a 5.5% budget was set for all other 
colleagues who had received no increase in January. Combined, 
therefore, all UK colleagues received at least 5.5% in 2023, 
with our frontline colleagues receiving up to 10% and an 
average of 7.2%. 
Further, as part of the September pay review, we also secured 
agreement with our unions for the 2024 review, bringing welcome 
certainty to both colleagues and the business. All UK frontline 
colleagues received a 4% increase in April 2024, while a 4% 
budget was available for our UK management population in 
June 2024.
Although inflation has fallen in recent months, the Committee 
understands that our colleagues continue to face cost pressures 
and it receives regular updates on pay and conditions across the 
business throughout the year. Isabel Hudson, as the Designated 
Non-Executive Director for Workforce Engagement, fed back any 
comments and sentiments on remuneration matters raised by the 
Colleague Board during the year. Maggie Chan Jones took on this 
responsibility during the year and the Committee will consult with 
Maggie to ensure these issues continue to be front-of-mind as it 
makes decisions on executive pay. 
In 2022 we voluntarily committed to paying all our UK colleagues 
at least in line with the Real Living Wage and continue to do so. 
This year, we expanded our commitment to pay a fair living wage 
to direct employees in all countries in which we operate, in 
compliance with the Ethical Trading Initiative’s Base Code #5.1. 
We’re confident that we meet minimum wage requirements in all 
countries in which we operate.  Almost 85% of our management 
colleagues are currently paid within or above their competitive 
market range, and we’ll continue to focus on improving 
competitive pay positioning as part of our annual pay cycle.
Customer context
We accentuated our focus this year on our customers during 
challenging economic times, and achieved particularly strong 
NPS results in our Business and Openreach divisions. Customer 
experience remains a core pillar of our strategy, and a key part 
of our annual bonus scorecard for the coming financial year. 
Shareholder context
Our share price performance over FY24 reflects the continued 
volatility in the wider market as well as the scale of the long term 
investment that we’re undertaking. However, we remain confident 
in our longer term strategy and continue to deliver against it. We 
again paid dividends in FY24 and believe that we’ve appointed the 
right Chief Executive to realise our vision for BT Group, bringing 
longer term benefits for our shareholders.
Salary
2023 salary review
As outlined above, our annual salary review for senior 
management took place in September rather than June. Simon 
Lowth received a base salary increase of 5.5% in line with the 
minimum increase for UK senior management colleagues. As 
disclosed previously, Philip Jansen waived his right to any increase 
in his base salary which had been fixed for five years following his 
appointment. 
2024 salary review
This year the annual salary review moves back to its usual effective 
date in June. UK managers are receiving an average 4% increase 
in salary, with an expected 2% minimum increase granted across 
the vast majority of our UK management population. There has 
been a particular focus on data-driven decision making, to target 
higher increases on those whose pay is less competitive versus 
market comparators. In line with this approach, Simon will receive 
a 2% increase in base salary. 
Allison Kirkby’s salary was set at £1,100,000 on appointment in 
February. No annual salary increase was awarded for 2024.
BT Group plc Annual Report 2024
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Report on directors’ remuneration continued

Annual bonus
FY24 annual bonus outcomes
For FY24, annual bonus performance was based on a scorecard of 
five key financial and non-financial measures that align to our 
strategic priorities. Financial performance accounted for 70% of 
the bonus scorecard and comprised the following measures:
– Adjusted EBITDA (35%) – despite ongoing macroeconomic 
challenges, we exceeded our target for the year and delivered 
£8.1bn in EBITDA.
– Normalised free cash flow (35%) – management of free cash 
flow was strong in-year, and we delivered  NFCF of £1.28bn, 
above target and our guidance for the year.
Our non-financial measures accounted for 30% of the bonus 
scorecard and comprised the following measures:
– Customer (20%) – this year saw increased NPS scores, 
particularly in Business and Openreach. After a disappointing 
previous year, we made up ground during FY24 in a difficult 
environment, exceeding target in three of four quarters, and 
stretch in two of four. Across the full year, performance was 
between target and stretch. 
– Inclusion, equity and diversity (10%):
– Representation in senior management team (5%) – we’ve 
set ambitious and stretching diverse representation targets 
across BT Group, and this metric measures progress towards 
meeting them. Although we made significant progress in 
disability representation, and some improvement in 
representation of black and black heritage colleagues, we 
failed to meet our targets on gender. Overall, therefore, the 
outcome was between threshold and target for the year.
– Inclusion index (5%) – defined as the average score across 
four key inclusion questions in our employee engagement 
surveys, this measure aimed to close the gap in inclusion 
sentiment for key under-represented groups. Unfortunately, 
the average gap in inclusion index score across these four 
groups increased from 4.6% to 5.9%, which did not meet our 
threshold target. 
More information on the actions we are taking on inclusion, equity 
and diversity can be found on pages 31 to 32. Further detail on the 
FY24 annual bonus scorecard outcomes can be found on page 
114.
The overall formulaic outcome of the bonus scorecard was 129.2% 
of target. The Committee considered this result in the context of 
the wider performance of the business, the pace of our 
transformation to date, and the experience of our shareholders, 
and exercised its discretion to reduce the bonus payout to 110% 
of target.
Philip and Simon will therefore be awarded bonuses of £1,452,000 
and £1,044,655 respectively. Half of Simon’s bonus will be 
deferred into shares for three years. 
FY25 annual bonus scorecard
The Committee has agreed that the current bonus scorecard 
remains aligned with our strategic priorities for the year, and 
accordingly no changes are proposed to the measures and 
weightings, other than minor tweaks in how inclusion and diversity  
are measured to ensure they remain fit for purpose. 
The annual bonus plan remains subject to a health and safety 
underpin and, if triggered, the Committee retains the discretion to 
reduce the payout as it considers appropriate, including to nil. 
No changes are proposed to bonus opportunities: on-target and 
maximum will remain at 120% and 200% of salary for both Allison 
and Simon, with 50% deferred into shares for a period of three 
years. 
Long term incentives
Vesting of 2021 Restricted Share Plan awards
The Committee carried out an assessment of the two underpins 
applying to the 2021 Restricted Share Plan (RSP) awards (relating 
to ROCE performance and ESG/reputational damage) and 
determined that neither were triggered. 
The Committee also assessed whether there was any evidence of 
windfall gains at the point of grant or vesting of these awards and 
concluded there was not. The Committee therefore agreed that 
the expected vesting value is appropriate.
All three tranches of the 2021 RSP awards will therefore vest in full 
in June 2024, 2025 and 2026 respectively. Tranches one and two 
remain subject to a holding requirement until June 2026. 
Grant of 2023 RSP awards
The grant of our 2023 RSP awards was delayed from June until 
September in line with the annual salary review. Simon received an 
award at the normal Policy opportunity of 200% of salary, whilst 
Philip did not receive an award in light of him stepping down from 
the Board. Allison received an award upon appointment in 
February, granted at the normal opportunity and pro-rated to 
reflect that she joined part-way through the vesting period. All 
awards will be subject to both ROCE and sustainability underpins, 
details of which can be found on page 115.
The Committee considered the level of awards, mindful that the 
share price at the time of award was lower than at the time of the 
2022 RSP award. 
As set out elsewhere in this report, the group is undergoing 
significant change as the Board-approved plan to transform and 
grow the business is executed. In order to build the UK’s leading 
networks and deliver for our customers, significant and ongoing 
long term investment is required. The Committee considers that 
the current share price reflects the position of the group in this 
strategic journey and that future share price increases will be as a 
result of management taking the right actions and consistently 
executing our strategy over the next three to five years, rather 
than as a result of a more general market recovery or windfall gain. 
The Committee therefore decided not to make any adjustment to 
the award level, but to review the value of the 2023 RSP awards at 
the time of vesting and use its discretion to adjust the outcome at 
that point, should it deem this to be appropriate.
BT Group plc Annual Report 2024
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Corporate governance report
Report on directors’ remuneration continued

Grant of 2024 RSP awards
Both Allison and Simon will be granted an award of 200% of salary 
in June. As in prior years, these awards will vest in three equal 
tranches in June 2027, 2028 and 2029, with all tranches subject to 
a holding requirement until June 2029. 
RSP awards will be subject to the same two underpins as the 2023 
awards, measured over the initial three-year vesting period:
1. ROCE – average return on capital employed must be at 
least 7%a. 
2. Sustainability – the business must have made sufficient 
progress over the vesting period towards meeting our 
sustainability commitments (this could include carbon 
emissions, carbon abatement and circularity).
Executive Director changes
Departure of Philip Jansen
Last July we announced Philip’s intention to step down from the 
Board once a suitable successor had been identified. He stepped 
down as Chief Executive on 31 January 2024, and remains an 
employee of the group until 30 June 2024 during which time he 
will make himself available to Allison Kirkby on request to ensure 
an orderly and effective handover. He will continue to receive his 
contractual salary and benefits until this date.
In line with the Policy and the treatment of prior leavers, and in 
light of the fact that he has retired from executive life, the 
Committee elected to treat Philip as a good leaver. As a result, he 
will be eligible to receive a full-year bonus in respect of FY24, 
which will be paid in full in June 2024.  Given his retirement, no 
deferral will apply, with the full bonus paid in June 2024.
Philip did not receive an RSP award in September 2023 as he had 
already announced his decision to step down. Outstanding shares 
under the RSP will be preserved, pro-rated for service, and will 
vest according to their normal schedule (subject to satisfaction of 
the relevant underpins). Outstanding shares under the Deferred 
Bonus Plan (DBP) will be retained fully and vest according to their 
usual timeframe. 
Philip will also be required to maintain a minimum shareholding 
equivalent to 500% of his annual salary for two years post 
cessation of employment.
Appointment of Allison Kirkby
Allison transitioned from her role as a Non-Executive Director to 
Chief Executive on 1 February 2024. Allison will receive the same 
remuneration package as her predecessor, which is within the 
parameters of the Policy and aligned to the market for 
comparators of BT Group’s size and complexity. 
This includes an annual salary of £1,100,000, and on-target bonus 
opportunity of 120% of salary, with 50% of any bonus deferred 
into shares for a three-year period. Allison will also receive an 
annual RSP grant worth 200% of salary, and an award in respect of 
FY24 was granted in February pro-rated to reflect that she joined 
part-way through the vesting period. Subject to the satisfaction of 
the relevant underpins, the RSP awards will vest in three tranches 
after three to five years and be subject to a holding period until 
year five. 
Full details of Allison’s remuneration package can be found in the 
section outlining the planned implementation of the Policy for 
FY25 on page 112.
Chairman and Non-Executive Director (NED) fees
In line with the wider workforce increase and that offered to 
Simon, the NED base fee will increase from 1 June by 2%, the first 
increase in two years. For simplicity, the fee payable for 
membership of the Nominations Committee (which all NEDs 
receive) has been consolidated into the base fee. As Chairman, 
Adam Crozier waived his right to receive any increase.
Noting the changes to the structure and responsibility of our 
Board Committees that have been made this year, a full review of 
our Committee and additional responsibility fees was undertaken, 
to ensure they remain appropriate and market-competitive. These 
fees have not been increased since 2019, and accordingly the 
following was agreed:
– An increase from £14,000 to £25,000 for the Chair of the 
Responsible Business Committee, and an increase from £8,000 
to £15,000 for members of said Committee
– An increase from £10,000 to £17,000 for the Designated Non-
Executive Director for Workforce Engagement. 
As always, the Committee and I wish to maintain an open dialogue 
on remuneration matters with our investors and I would welcome 
their comments or feedback, and support, at the forthcoming 
AGM.
Ruth Cairnie 
Chair of the Remuneration Committee 
15 May 2024
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Corporate governance report
a   ROCE is defined on page 48.

Our remuneration principles are to maintain a competitive 
remuneration package that promotes the long term success of the 
business, avoids excessive or inappropriate risk-taking and aligns 
management’s interests with those of shareholders. 
Below is how remuneration is aligned with the principles of the Code.
Clarity
– Our remuneration framework is structured to support the 
financial and strategic objectives of the group, aligning 
the interests of our Executive Directors with those of 
our shareholders
– We’re committed to transparent communication with all 
stakeholders, including our shareholders
– The same annual performance framework applies to all our 
management colleagues, including Executive Directors, with 
aligned group and divisional metrics to ensure a consistent 
focus.
Risk
– Our incentives are structured to align with the group’s risk 
management framework
– Three-year deferral under the annual bonus and a five-year 
release period on RSP awards create long term alignment, as 
do our in- and post-employment shareholding requirements
– The annual bonus, deferred bonus and RSP also incorporate 
malus and clawback provisions, and there is overarching 
Remuneration Committee discretion to adjust formulaic 
outcomes.
Predictability
– The long-term RSP reflects that we operate in a tightly 
regulated environment, ensuring a narrower but more 
predictable range of reward and performance outcomes 
to align with our business model.
Proportionality
– There is clear alignment between group performance, strategic 
progress, and remuneration outcomes for our Executive 
Directors
– Target total compensation levels are set competitively 
compared to other companies of similar size and complexity to 
ensure we can attract and retain the executives needed to 
deliver the business strategy
– Maximum total compensation levels are typically set lower than 
typical market practice to reflect the narrower and more 
predictable range of performance outcomes for BT Group
– Formulaic incentive outcomes are reviewed by the 
Remuneration Committee and may be adjusted after 
considering overall group performance and wider workforce 
remuneration policies and practices.
Simplicity
– We operate a simple but effective remuneration framework 
which is applied on a consistent basis for all colleagues
– The annual bonus rewards performance against key 
performance indicators, while the RSP provides long term 
sustainable alignment with our shareholders
– There is clear line of sight for management and shareholders.
Alignment to culture
– When considering performance, the Remuneration Committee 
takes account of BT Group’s values
– The Remuneration Committee receives regular updates on 
remuneration practices and policies for the wider workforce, 
and colleagues may provide feedback to the Board via the 
Colleague Board and the Designated Non-Executive Director 
for Workforce Engagement
– Colleagues are encouraged to become shareholders in the 
business through the operation of all-employee share plans.
BT Group plc Annual Report 2024
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Corporate governance report
Focus on 
remuneration

Remuneration earned in FY24
 Fixed pay   
 Variable pay
£000
Allison Kirkby
Chief Executive
Philip Jansen
Former Chief Executive
Simon Lowth
Chief Financial Officer
Allison Kirkbya
Philip Jansen
Simon Lowth
a   Allison was appointed as Chief Executive from        
1 February 2024. The FY24 base salary figure 
reflects Allison’s total remuneration for the year 
representing £105,000 received as an 
Independent Non-Executive Director and 
£183,000 received as Chief Executive. Allison was 
not eligible for a bonus in FY24 and her first RSP 
award was granted in February 2024.  
b   In line with the Policy, 50% of the annual bonus is 
deferred into shares for three years. Philip’s FY24 
bonus will be paid fully in cash, with no deferral 
into shares. 
c   Both underpins have been satisfied for the 2021 
RSP award and therefore all three tranches of the 
2021 RSP award will vest in full in June 2024, 
2025 and 2026 respectively. In addition, the 
second tranche of the 2020 RSP will vest in 
August 2024. Further detail is set out on page 
114. 
d  The total variable pay for FY23 for Philip and FY24 
for Simon do not balance due to roundings. 
£000
FY24
FY23
FY24
FY23
FY24
FY23
Base salary
288
n/a
917
1,100
774
748
Pension allowance
18
n/a
92
110
77
75
Benefits
35
n/a
107
113
24
23
Total fixed pay
341
n/a
1,116
1,323
875
846
Annual bonus (shares)b
n/a
n/a
n/a
481
522
328
Annual bonus (cash)
n/a
n/a
1,452
481
522
328
RSP (shares)c
n/a
n/a
1,151
670
770
448
Total variable payd
0
n/a
2,603
1,633
1,815
1,104
Total
341
n/a
3,719
2,956
2,690
1,950
Performance outcomes in FY24
Annual bonus FY24
Measure and weighting (%)
Payout (% of max)
– Bonus was subject to five measures of 
financial and non-financial performance
– Both financial metrics and NPS were above 
target for the year
– Our SMT representation metric finished the 
year below target while our inclusion index 
result missed threshold
– This resulted in a formulaic outcome of 
129.2% of target. However, the Committee 
exercised its discretion to reduce the overall 
scorecard payout to 110% of target
– In line with the Policy, 50% of Simon’s 
annual bonus will be deferred into shares 
for three years.
Adjusted EBITDA (35%)
80%
Normalised free cash flow (35%)
92%
Group Net Promoter Score (NPS) (20%)
73%
SMT representation (5%)
53%
Inclusion index (5%)
0%
2021 RSP
– A conditional share award subject to two underpins over the initial three-year vesting period.
– The Committee assessed the two underpins at the end of the restricted period and confirmed that both had been satisfied.
– Accordingly, all three tranches of the 2021 RSP award will vest in full in June 2024, 2025 and 2026 respectively. Tranches one and 
two are subject to a holding period until June 2026. Further detail is set out on page 114.
BT Group plc Annual Report 2024
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Corporate governance report

Implementation of the Policy in FY25
 Fixed pay
 Annual bonus
 RSP
Allison Kirkby
Chief Executive
Salary – £1,100,000 
Benefits
Pension allowance – 
10% of salary
Maximum opportunity – 
200% of salary 
Target opportunity – 
120% of salary
2024 award – 200% of salary
Simon Lowth
Chief Financial Officer
Salary – £791,405
Benefits
Pension allowance – 
10% of salary
Maximum opportunity –
200% of salary 
Target opportunity – 
120% of salary
2024 award – 200% of salary
Performance
measures
n/a
– Adjusted EBITDA (35%)
– Normalised free cash flow (35%)
– NPS (20%)
– Diversity and inclusion (10%).
An underpin applies which allows the
Committee to exercise its discretion 
to reduce the scorecard result if 
there is a significant breach in health 
and safety.
Awards subject to two underpins over 
the initial three-year vesting period:
– Average ROCE must be at least 7%
– Sufficient progress is made towards 
meeting our sustainability 
commitments.
Framework
n/a
– 50% of any bonus payment for 
FY25 will be deferred into shares 
for three years
– Malus and clawback provisions 
apply
– Full Committee discretion 
available.
– Awards vest in three equal tranches 
after three, four and five years; no 
shares can be sold until year five
– Malus and clawback provisions 
apply
– Full Committee discretion 
available.
Directors’ Remuneration Policy (Policy)
The Policy as approved by shareholders at the AGM on 13 July 2023 in accordance with section 439A of the Companies Act 2006 
can be found online at bt.com/annualreport 
BT Group plc Annual Report 2024
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Corporate governance report
Focus on remuneration continued

This section summarises all elements of the directors’ remuneration in FY24. References to ‘audited’ 
refer to an audit performed in accordance with UK statutory reporting requirements.
Single total figure of remuneration (audited)
The following table sets out all emoluments received by directors for FY24 and FY23.
 Fixed pay
 Variable pay
Basic salary 
and fees 
£000
Benefitsa 
£000
Pensionb 
£000
Total 
fixed pay
£000
Annual bonusc 
£000
Long term 
incentives 
£000
Total 
variable pay
£000
Total
£000
FY24
FY23
FY24
FY23
FY24
FY23
FY24
FY23
FY24
FY23
FY24d
FY23e
FY24
FY23
FY24
FY23
Chairman
Adam Crozier
700
700
11
12
711
712
711
712
Executive Directors
Allison Kirkbyf,i
288
125
35
8
18
341
133
341
133
Simon Lowth
774
748
24
23
77
75
875
846
1,045
656
770
448
1,815
1,104
2,690
1,950
Non-Executive directors
Ruth Cairnieg
161
161
161
Maggie Chan 
Jonesh,i
99
8
35
134
8
134
8
Steven 
Guggenheimerh,i
97
48
36
15
133
63
133
63
Isabel Hudsoni
147
146
2
1
149
147
149
147
Matthew Keyi
163
150
2
1
165
151
165
151
Raphael Kűblerj
0
0
0
Sara Welleri
140
138
140
138
140
138
Sub-total
2,569
2,063
145
60
95
75
2,809
2,198
1,045
656
770
448
1,815
1,104
4,624
3,302
Directors who left during the 
year
Philip Jansenk
917
1,100
107
113
92
110
1,116
1,323
1,452
963
1,151
670
2,603
1,633
3,719
2,956
Adel Al-Salehl
0
0
0
0
0
Ian Cheshirem
44
155
44
155
44
155
Iain Connm
47
163
47
163
47
163
Total
3,577
3,481
252
173
187
185
4,016
3,839
2,497
1,619
1,921
1,118
4,418
2,737
8,434
6,576
a Benefits are provided in line with the Policy. For Allison, the figure includes one-off relocation costs to the value of £25,000. For Philip, the figure includes a company provided car 
and personal driver to the value of c. £79,000 (FY23:  £86,000).
b Pension allowance paid in cash for the financial year – see ‘Pension allowance’ on page 114.
c Annual bonus shown includes both the cash and deferred share element for Simon. The deferred element of the FY24 bonus includes the value of deferred shares to be granted in 
June 2024. Further details of the deferred element are set on page 122. Allison will not receive a bonus in respect of FY24. Philip’s FY24 bonus will be paid fully in cash, with no 
deferral into shares.
d Value shown represents the estimated value of the second tranche of the RSP awards granted in 2020 and the first tranche of the RSP awards granted in 2021, that will vest in 
August and June 2024 respectively. The estimated value is based on a three-month average share price from 1 January 2024 to 31 March 2024 of 110.46p. Further details are 
provided on page 118. For the 2021 award, none of the value was attributable to share price appreciation over the vesting period. The Committee did not exercise any discretion in 
relation to the vesting of the awards or share price change.  
e The first tranche of the 2020 RSP vested in August 2023. The 2020 RSP value reported last year (£803,000 for Philip and £537,000 for Simon) was calculated on an estimated basis 
using the three-month average share price from 1 January 2023 to 31 March 2023 of 135.88p. The figures have been restated to reflect the actual share price on vesting of 
113.43p.  Further details are provided on page 118.
f  Allison was appointed as a Director in March 2019 and became Chief Executive on 1 February 2024. The figure reflects Allison’s total remuneration for the year representing 
£105,000 received as an Independent Non-Executive Director and £183,000 received as Chief Executive.
g Ruth was appointed as a Director on 6 April 2023 and the figure represents her pro-rated remuneration during the year. 
h Includes an additional fee for regular intercontinental travel to attend Board and Board Committee meetings in line with the Policy.
i  Value shown relates to reimbursement of reasonable travelling and other expenses (including any relevant tax) incurred in carrying out their duties.
j  Raphael was appointed as a Director on 30 January 2024. Under the terms of the Relationship Agreement between BT Group and Deutsche Telekom and Raphael’s letter of 
appointment, no remuneration is payable for this position.
k Philip stepped down as a Director and Chief Executive on 31 January 2024 and the figure represents his pro-rated remuneration during the year.
l Adel stepped down as a Director on 31 December 2023. Under the terms of the Relationship Agreement between BT Group and Deutsche Telekom and Adel’s letter of 
appointment, no remuneration is payable for this position. 
m Ian and Iain stepped down as Directors at the conclusion of the AGM on13 July 2023 and the figure represents their pro-rated remuneration during the year.
BT Group plc Annual Report 2024
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Annual 
remuneration report

Additional disclosures relating to the single figure table (audited)
Salaries and fees
Executive Directors’ salaries are reviewed annually, with any increases typically effective from 1 June. A 5.5% increase to Simon Lowth’s 
salary was agreed from 1 September 2023 in line with increases for our UK senior management team, bringing Simon’s salary to 
£791,405. Philip’s salary of £1,100,000 was fixed for five years at the time of his appointment in January 2019.  Allison was appointed as 
Chief Executive on 1 January 2024 and the Committee agreed a salary of £1,100,000.
Adam’s annual fee has been £700,000 since his appointment as Chairman on 1 December 2021. His fee has remained at this level 
throughout the year as the Chairman volunteered to waive any fee increase during FY24.
The fees for Non-Executive Directors reflect Committee-related or other additional responsibilities, including on a pro-rated basis for 
any appointments during the year. A full breakdown of Non-Executive Director fees is set out on page 119.
Pension allowance
Executive Directors receive an annual cash allowance, which can be put towards the provision of retirement benefits.
All Executive Directors received an annual allowance of 10% of salary. This is aligned with the contribution rate available to the majority of 
our UK employees. We also provide death in service cover consisting of a lump sum equal to four times salary, and for Simon Lowth only, a 
dependants’ pension equal to 30% of his capped salary. 
Annual bonus
Philip and Simon were eligible for an on-target bonus in respect of FY24 of 120% of salary with a maximum opportunity of 200% of salary.  
Having joined as Chief Executive on 1 February 2024 and in accordance with the bonus plan rules, Allison was not entitled to a bonus for 
FY24.  The annual bonus is based on performance against a scorecard of five key financial and non-financial measures linked to our KPIs 
as set out on pages 48 to 49.
Category
Measure
Weighting
Threshold
Target
Stretch
Actual
Payout (% of max)
Financial
Adjusted EBITDA (£m)
 35% 
7,959
8,075
8,191
8,100
 80% 
Normalised free cash flow (£m)
 35% 
1,072
1,188
1,304
1,280
 92% 
Transformation 
scorecard
Group NPS
 20% 
0
100
200
132
 73% 
SMT representation (%)
 5% 
76.9
84.6
92.3
82.8
 53% 
Inclusion index
 5% 
 3.5% 
 2.3% 
 1.1% 
6.0%
0%
Formulaic outcome
77.3% of max (129.2% of target)
For scorecard purposes, the EBITDA result assumes an on-target bonus payout for all colleagues. Actual post-bonus EBITDA for FY24 is 
£8,100m.
When determining the overall performance and bonus pay-outs, the Committee also considers a number of other factors including the 
wider performance of the business, share price performance, the external environment and overall affordability. Despite the formulaic 
outcome of the final bonus scorecard being 129.2% of target, the Committee exercised its discretion to reduce the outcome to 110% of 
target. The Committee believes this is a fair reflection of the overall performance of the business. 
The final bonus outturns for Philip and Simon are set out in the table below:
Formulaic outcome
Following discretion
% of max
Value
Philip Jansen
129.2% of target
110% of target
 65.9% 
£1,452,000
Simon Lowth
129.2% of target
110% of target
 65.9% 
£1,044,655
2021 RSP
The RSP is a conditional share award. Two underpins applied over the initial three-year vesting period:
– ROCE is equal to or exceeds the WACC over the same period
– there must have been no ESG issues which have resulted in material reputational damage for the group.
The Committee assessed performance against the two underpins at the end of the financial year and agreed that both had been satisfied. 
As a result, all three tranches of the 2021 RSP award will vest in full in June 2024, 2025 and 2026 respectively. Tranches one and two 
remain subject to a holding requirement until June 2026.
BT Group plc Annual Report 2024
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Corporate governance report
Annual remuneration report continued

Awards granted during the year (audited)
2023 RSP
The 2023 RSP awards were made in September 2023 as set out below and on page 118. An RSP award was made to Simon Lowth in line 
with the normal Policy level. Despite serving as Chief Executive for almost a year of the performance period, no award was made to Philip 
Jansen on the basis of him stepping down as Chief Executive at the end of January 2024. 
To reflect her joining part-way through the initial three-year vesting period, a pro-rated award was made to Allison Kirkby.
Director
Date of award
RSP award 
(shares)
Grant pricea
% of salary
Face value 
of award
Allison Kirkby
8 February 2024  
1,484,942 
107.00p  
144 
£1,588,889
Simon Lowth
7 September 2023  
1,388,429 
114.00p  
200 
£1,582,809
a The grant price is calculated using the average middle-market price of a BT Group plc share for the three dealing days prior to grant.
These awards are conditional share awards. Two underpins apply over the initial three-year vesting period:
– average ROCE must be at least 7%
– the business must have made sufficient progress over the vesting period towards meeting our sustainability commitments (which could 
include carbon emissions, carbon abatement and circularity). 
Should one or both underpins not be met, the Committee may at its discretion reduce the number of shares vesting, including to nil.
Awards will vest in three equal tranches after three, four and five years, with an additional holding period such that no shares may be sold 
until year five. At vesting, additional shares representing the value of reinvested dividends on the underlying shares are added.
Malus and clawback provisions apply as set out in the Policy, and the Committee retains the ultimate discretion to adjust vesting levels to 
ensure alignment with our overall performance.
Details of all interests under the RSP are set out on page 118.
2023 deferred shares
In line with the Policy, 50% of the bonus awarded for FY23 was deferred into shares. The awards were made under the deferred bonus 
plan (DBP) in June 2023 as set out below and on page 118. 
Director
Date of award
DBP award 
(shares)
Grant pricea
Face value of 
award
Philip Jansen
15 June 2023  
343,782 
140.00p
£481,294
Simon Lowth
15 June 2023  
234,442 
140.00p
£328,218
a The grant price is calculated using the average middle-market price of a BT Group plc share for the three dealing days prior to grant.
Deferred shares are not subject to performance conditions and have a three-year vesting period. At vesting, additional shares 
representing the value of reinvested dividends on the underlying shares are added.
Malus and clawback provisions apply as set out in the Policy, and the Committee retains the ultimate discretion to adjust vesting levels to 
ensure alignment with our overall performance.
Details of all interests under the DBP are set out on page 118.
Joining arrangements for Allison Kirkby
Allison transitioned from her role as a Non-Executive Director to Chief Executive on 1 February 2024. Allison will receive the same 
remuneration package as her predecessor, which is within the parameters of the Policy and aligned to the market for comparators of       
BT Group’s size and complexity. 
This includes an annual salary of £1,100,000, and on-target bonus opportunity of 120% of salary, with 50% of any bonus deferred into 
shares for a three-years. Allison was not eligible to receive a bonus in respect of FY24. Allison’s RSP opportunity under the Policy will be 
200% of salary. As outlined above, Allison was granted an RSP award in respect of FY24 in February 2024 pro-rated to reflect that she 
joined part-way through the initial three-year vesting period. Subject to the satisfaction of relevant underpins, RSP awards will vest in 
three equal tranches after three, four and five years and be subject to a further two-year holding period. 
Allison will be subject to our shareholding requirement, being expected to build up a shareholding of 500% of salary within five years of 
the date of her appointment.  This requirement continues to apply for two years post-cessation.
BT Group plc Annual Report 2024
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Corporate governance report

Philip Jansen leaving arrangements (audited)
Philip Jansen stood down as a director on 31 January 2024 but remains an employee of the group until 30 June 2024 continuing to 
support an orderly and effective handover to Allison Kirkby as required. Under the terms of his service contract, he will continue to receive 
his salary and contractual benefits until the end of his notice period, being 30 June 2024. These payments will total £458,333 basic salary 
and fees, £8,888 benefits and £45,883 pension allowance. For FY24 this amounts to £183,333 basic salary and fees, £3,555 benefits and 
£18,333 pension allowance. For FY25 this amounts to £275,000 basic salary and fees, £5,333 benefits and £27,500 pension allowance. 
Philip will receive no compensation or payment for the termination of his service contract or his ceasing to be a director of BT Group or 
any other group company, although BT Group will pay independent adviser fees of £45,000 (paid directly to the adviser) and £100 for 
reconfirmation of customary post-employment restrictions on working for competitors. 
In line with the Policy and the treatment of prior leavers, and in light of the fact that he has retired from executive life, the Committee 
elected to treat Philip as a good leaver. As a result, he will be eligible to receive a full-year bonus in respect of FY24, which will be paid in 
full in June 2024. Philip will not be eligible for an annual bonus in FY25.
Philip did not receive an RSP award in September 2023 as he had already announced his decision to step down. Outstanding shares under 
the RSP will be preserved, pro-rated for service, and will vest according to their normal schedule (subject to satisfaction of the relevant 
underpins). Outstanding shares under the DBP will be retained fully and vest according to their usual timeframe. 
Philip will also be required to maintain a minimum shareholding equivalent to 500% of his annual salary for two years post cessation of 
employment.
Former directors (audited)
No payments were made to former directors during the year.
Directors’ share ownership (audited)
The Committee believes that the interests of the Executive Directors should be closely aligned with those of shareholders. The aim is to 
encourage the build-up of a meaningful shareholding in BT Group plc over time by retaining net shares received through the executive 
share plans or from market purchases.
The shareholding requirement for Executive Directors under the Policy is 500% of salary. Executive Directors are expected to meet this 
requirement within five years of the approval of the Policy or, in the case of any new Executive Directors appointed, within five years of 
their date of appointment.
The shareholding requirement continues to apply in full for two years post-cessation of employment (or the total number of shares held 
at cessation, if lower). The post-cessation shareholding requirement will be calculated and expressed as a fixed number of shares by 
reference to the closing BT Group plc share price on the day immediately prior to the cessation date. The requirement is fixed as this 
number of shares for a period of two years and compliance will be measured at cessation and annually thereafter. In enforcing continued 
compliance post-cessation, the Committee may request that the Executive Director transfers any shares subject to the shareholding 
requirement to be held in trust until they no longer need to be retained.
We encourage the Chairman and Independent Non-Executive Directors to purchase, on a voluntary basis, BT Group plc shares with an 
aggregate value of £5,000 on average each year (based on acquisition price) to further align the interests of Non-Executive Directors 
with those of our shareholders. They are asked to hold these shares until they cease being a member of the Board.
This does not apply to the Deutsche Telekom nominated representative director appointed to the Board as a Non-Independent, Non-
Executive Director under the terms of the EE acquisition in January 2016. This helps avoid any conflict of interest.
BT Group plc Annual Report 2024
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Corporate governance report
Annual remuneration report continued

Directors’ interests at 31 March 2024 or on cessation (audited)
The following tables show the beneficial interests in BT Group plc shares of directors and persons closely associated as at 31 March 2024 
(or at the point of leaving for directors who left during the year).
The first table includes interests held by the Executive Directors under BT Group plc’s share plans. The numbers represent the maximum 
possible vesting levels. Full details of all DBP and RSP awards, including restricted periods and vesting conditions, are set out on page 
118.
For Executive Directors we use the average BT Group plc share price over the preceding 12 months (or the share price at acquisition/
vesting date if higher) to determine whether the minimum shareholding requirement has been reached.
During the period 1 April 2024 to 15 May 2024, there were no movements in directors’ beneficial holdings or other interests in shares. The 
directors, as a group, beneficially own less than 1% of BT Group plc’s shares.
Executive Directors
Number of shares 
owned outright at 
31 March 2024
RSP and
 DBPa
Optionsb
Shareholding 
requirement
 (% of salary)
Current 
shareholding 
(% of salary)
Allison Kirkby
525,000
787,019
0
 500% 
 161% 
Simon Lowth
1,186,387
2,695,526
11,222
 500% 
 728% 
a Subject to continued employment and, for the RSP, two underpins over the initial three-year vesting period.
b Includes interests in saveshare, a HMRC-approved all-employee plan and yourshare, a HMRC-approved share incentive plan.
Beneficial holding owned 
outright at 1 April 2023
Beneficial holding owned 
outright at 31 March 2024
Chairman
Adam Crozier
62,500
62,500
Non-Executive Directors
Ruth Cairniea
n/a
25,000
Maggie Chan Jones
0
70,000
Steven Guggenheimer
0
4,700
Isabel Hudson
24,090
24,090
Matthew Key
161,686
209,586
Raphael Küblerb
0
0
Sara Weller
37,000
47,000
Directors who left during the year
Philip Jansenc
6,412,792
7,366,259
Adel Al-Salehd
0
0
Ian Cheshiree
19,646
19,646
Iain Conne
69,442
69,442
Total
6,787,156
7,898,223
a  Ruth was appointed as a Director on 6 April 2023.
b  Raphael was appointed as a Director on 30 January 2024.
c  Philip stepped down as a Director and Chief Executive on 31 January 2024 and the number reflects his holding at that date.
d   Adel stepped down as a Director on 31 December 2023 and the number reflects his holding at that date.
e Ian and Iain stepped down as Directors at the conclusion of the AGM on 13 July 2023 and the number reflects their holding at that date.
BT Group plc Annual Report 2024
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Corporate governance report

1 April 2023
Awarded/
granted
Dividends 
reinvested
Vested
Lapsed
Total 
number of 
award 
shares at   
31 March 
2024
Vesting date
Price at 
grant
Market 
price at 
date of 
vesting
Market 
price at 
date of 
exercise
Monetary 
value of 
vested 
award 
£000
Allison Kirkby
RSP 2023a
–
1,484,942
1,484,942
15/06/2026
107.00p
Simon Lowth
DBP 2020
806,314
806,314
–
03/08/2023
119.27p
113.43p
915
DBP 2021
464,055
31,346
495,401
24/06/2024
203.16p
DBP 2022
253,169
17,100
270,269
24/06/2025
184.35p
DBP 2023b
234,442
15,835
250,277
15/06/2026
140.00p
RSP 2020c
1,184,694
53,349
394,899
843,144
03/08/2023
106.11p
113.43p
448
RSP 2021d
773,426
52,243
825,669
24/06/2024
203.16p
RSP 2022
860,778
58,144
918,922
24/06/2025
184.35p
RSP 2023e
1,388,429
93,787
1,482,216
15/06/2026
114.00p
saveshare 
(2019)f
10,975
10,975
01/08/2024
163.92p
yourshare 2021g
247
247
24/06/2024
202.70p
Former director
Philip Jansen
DBP 2020
1,182,364
1,182,364
–
03/08/2023
119.27p
113.43p
1,341
DBP 2021
694,092
46,885
740,977
24/06/2024
203.16p
DBP 2022
378,667
25,577
404,244
24/06/2025
184.35p
DBP 2023b
343,782
23,221
367,003
15/06/2026
140.00p
RSP 2020c
1,771,955
79,796
590,652
1,261,099
03/08/2023
106.11p
113.43p
670
RSP 2021d
1,156,821
78,142
1,234,963
24/06/2024
203.16p
RSP 2022
1,262,230
85,262
1,347,492
24/06/2025
184.35p
yourshare 2021g
247
247
24/06/2024
202.70p
a Award granted on 8 February 2024. The number of shares subject to award was calculated using the average middle market price of a BT Group plc share for the three dealing days 
prior to grant. The award will vest in three equal tranches after three, four and five years. A holding period will apply such that no shares may be sold until year five. Two underpins will 
apply over the initial three-year vesting period as set out on page 115.
b Awards granted on 16 June 2023. The number of shares subject to awards was calculated using the average middle-market price of a BT Group plc share for the three days prior to 
grant.
c Awards granted on 3 August 2020. The number of shares subject to awards was calculated using the average middle market price of a BT Group plc share for the three dealing days 
prior to grant. Awards vest in three equal tranches after three, four and five years. The Committee assessed performance against the two underpins at the end of the FY23 and 
agreed that both had been satisfied. Tranche one vested on 3 August 2023. Tranche two will vest on 3 August 2024 and tranche three on 3 August 2025.  A holding period will apply 
such that no shares may be sold until year five. 
d Awards granted on 24 June 2021. The number of shares subject to awards was calculated using the average middle market price of a BT Group plc share for the three dealing days 
prior to grant. Awards will vest in three equal tranches after three, four and five years. A holding period will apply such that no shares may be sold until year five. Two underpins will 
apply over the initial three-year vesting period as set out on page 114. The Committee assessed performance against the two underpins at the end of the financial year and agreed 
that both had been satisfied. As a result, all three tranches of the 2021 RSP award will vest in full in June 2024, 2025 and 2026 respectively. Tranches one and two remain subject to a 
holding requirement until June 2026.
e Award granted on 7 September 2023. The number of shares subject to award was calculated using the average middle market price of a BT Group plc share for the three dealing 
days prior to grant. The award will vest in three equal tranches after three, four and five years. A holding period will apply such that no shares may be sold until year five. Two 
underpins will apply over the initial three-year vesting period as set out on page 115.
f Option granted on 14 June 2019 under the employee saveshare scheme, in which all eligible employees of the group are entitled to participate.
g Awards granted on 24 June 2021 under the free share element of the BT Group plc Employee Share Investment Plan in which all eligible employees of the group were granted £500 
worth of shares.
BT Group plc Annual Report 2024
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Corporate governance report
Annual remuneration report continued

Implementation of the Policy in FY25
Base salary
Allison’s base salary of £1,100,000 was agreed on appointment in 
January 2024. No salary increase will be awarded for 2024. 
In line with an expected minimum increase granted across our UK 
management population, Simon will receive a 2% salary increase 
effective 1 June 2024. 
Benefits
For Executive Directors, the Committee has set benefits in line 
with the Policy. No changes are proposed to the benefit 
framework for FY25.
Pension allowance
In line with the rate offered to the majority of our UK workforce, 
both Executive Directors receive an annual allowance equal to 
10% of salary in lieu of pension provision.
Annual bonus
Both Executive Directors are eligible for an on-target and 
maximum bonus opportunity of 120% and 200% of salary 
respectively. In line with the Policy, 50% of any bonus payable will 
be deferred into shares for three years.
The Committee has reviewed in full the measures, weightings and 
targets used in the annual bonus scorecard. The FY25 annual 
bonus structure measures and weightings are set out below.
Category
Measure
Weighting
Financial
Adjusted EBITDA
 35% 
Normalised free cash flow
 35% 
Transformation 
scorecard
NPS
 20% 
Inclusion & diversity
 10% 
All of the annual bonus measures are linked to our KPIs as set out 
on pages 48 to 49.  
In addition to the annual bonus scorecard, a health and safety 
underpin applies which allows the Committee to exercise its 
discretion to reduce the annual bonus payout result if there is a 
significant breach in health and safety.
We do not publish details of the targets in advance as these are 
commercially confidential. Targets will be disclosed in full in the 
2025 Report on directors’ remuneration.
RSP
Both Executive Directors will be granted an award under the RSP 
in June 2024 to the value of 200% of salary. 
When considering the grant levels each year, the Committee takes 
in account of the share price performance over the preceding year. 
Following review, the Committee has agreed that awards will be 
granted to both Executive Directors this year at the normal Policy 
level of 200% of salary. 
The Committee has agreed the same two underpins will apply for 
the 2024 RSP awards which will be measured over the initial three-
year vesting period:
– Average ROCE must be at least 7%1
– The business must have made sufficient progress over the vesting 
period towards meeting our sustainability commitments (which 
could include carbon emissions, carbon abatement and circularity).
Awards will vest in three equal tranches after three, four and five 
years, with an additional holding period such that no shares may be 
sold until year five. At vesting, additional shares representing the 
value of reinvested dividends on the underlying shares are added.
Malus and clawback provisions and overarching Committee 
discretion applies, as set out in the Policy.
Chairman and Non-Executive Director remuneration
The fees for Non-Executive Directors were reviewed in the year by 
the Chairman and Executive Directors, taking into consideration 
the role and requirements of BT Group, together with the fees paid 
to non-executive directors at companies of a similar size and 
complexity. Following the review it was agreed to increase the 
base fee by 2% in line with the minimum expected budget for our 
UK management colleagues. It was also agreed to consolidate the 
Nominations Committee member’s fee (£10,000) into the base 
fee. This means the base fee will increase from £78,540 to £90,000 
a year effective from 1 June 2024. 
The Chairman receives a single all-inclusive fee for his role. No 
increase has been awarded for FY25 and this will remain at 
£700,000. 
Other changes agreed as part of the review were:
– An increase in the Responsible Business Committee chair’s fee 
from £14,000 to £25,000
– An increase in the Responsible Business Committee member’s 
fee from £8,000 to £15,000
– An increase in the fee for the Designated Non-Executive 
Director for Workforce Engagement from £10,000 to £17,000.
The table below sets out the additional fees for membership and 
chairing a Board Committee and reflects the changes agreed 
during the year. 
Committee
Chair’s fee
Member’s fee
Audit & Risk
£35,000
£25,000
National Security & 
Investigatory Powers
n/aa
£8,000
Remuneration
£30,000
£15,000
Responsible Business
£25,000
£15,000
a  Where the Chairman or Chief Executive acts as Chair of a Board Committee, no 
additional Committee Chair fee is payable.
Other fees payable include:
– an additional fee of £27,000 per annum to the Senior 
Independent Non-Executive Director
– an additional fee of £20,000 per annum to the Director 
appointed to the joint venture between BT Group and Warner 
Bros. Discovery.
No element of Non-Executive Director remuneration is 
performance-related. Neither the Chairman nor the Non- 
Executive Directors participate in our bonus or employee share 
plans and nor are they members of any of the group pension 
schemes.
BT Group plc Annual Report 2024
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Corporate governance report
1   ROCE is defined on page 48.

Other remuneration matters
Advisers
During the year, the Committee received independent advice on 
executive remuneration matters from Deloitte LLP. The 
Committee is satisfied that the advice provided by Deloitte has 
been objective and independent. The Deloitte partner who 
provides remuneration advice to the Committee does not have 
any connections with BT Group plc that may impact their 
independence. Deloitte received £75,800 (excluding VAT) in fees 
for these services.
The fees are charged on a time-spent basis in delivering advice. 
That advice materially assisted the Committee in its consideration 
of matters relating to executive remuneration and the Policy.
Deloitte is a founder member of the Remuneration Consultants 
Group and as such, voluntarily operates under the code of conduct 
in relation to executive remuneration consulting in the UK.
In addition, during FY24, Deloitte provided the group with advice 
on corporate and indirect taxes, assistance with regulatory, risk 
and compliance issues, accounting advice, and additional 
consultancy services. 
Dilution
We use both treasury shares and shares purchased by the                
BT Group Employee Share Ownership Trust (the Trust) to satisfy 
our all-employee share plans and executive share plans. Shares 
held in the Trust do not have any voting rights.
As at 31 March 2024, shares equivalent to 2.31% (FY23: 3.03%) of 
the issued share capital (excluding treasury shares) would be 
required to satisfy all outstanding share options and awards. Of 
these, we estimate that for FY25, shares equivalent to 
approximately 0.27% (FY23: 0.87%) of the issued share capital 
(excluding treasury shares) will be required to satisfy the all-
employee share plans.
Previous AGM voting outcomes
The table below sets out the previous votes cast at the AGM in 
respect of the Annual remuneration report and the Policy.
For   
% of votes cast/
Number
Against   
% of votes cast/
Number
Withheld votes/
Number
Report on 
directors’ 
remuneration 
at the 13 July 
2023 AGM
 
98.15 
1.85
 6,801,425,259  
128,049,792  
1,580,860 
Policy at the 
13 July 2023 
AGM
98.17
1.83
 6,798,003,577  
126,721,663  
6,331,473 
Withheld votes are not counted when calculating voting 
outcomes.
Committee evaluation FY24
Details on the FY24 Board and Committee evaluation can be 
found on page 94.
Comparison of Chief Executive remuneration to TSR 
(unaudited)
TSR is the measure of the returns that a company has provided for 
its shareholders, reflecting share price movements and assuming 
reinvestment of dividends. The graph below illustrates the 
performance of BT Group plc measured by TSR relative to a broad 
equity market index over the past ten years. We consider the FTSE 
100 to be the most appropriate index against which to measure 
performance, as BT Group plc has been a member of the FTSE 100 
throughout the ten-year period.
BT Group plc’s TSR performance vs the FTSE 100
Source: Datastream
History of Chief Executive remuneration
Year end
Chief Executive
Total 
remuneration 
£000
Annual bonus 
(% of max)
ISP/RSP 
vesting   
(% of max)
2024
Allison Kirkbya
341
n/a
n/a
Philip Jansenb
3,719
 65.9% 
 100% 
2023
Philip Jansen
3,089
 43.7% 
 100% 
2022
Philip Jansen
3,460
 60% 
 19.1% 
2021
Philip Jansen
2,628
 60% 
 0% 
2020
Philip Jansen
3,248
 50% 
n/a
2019
Philip Jansen
725
 56% 
n/a
Gavin Pattersonc
1,719
 28% 
 0% 
2018
Gavin Patterson
2,307
 54% 
 0% 
2017
Gavin Patterson
1,345
 0% 
 0% 
2016
Gavin Patterson
5,396
 45% 
 82.0% 
2015
Gavin Patterson
4,562
 58% 
 67.4% 
a  Allison was appointed as a Director on 15 March 2019 and became Chief Executive 
from 1 February 2024. Her first RSP award was granted in February 2024.  
b  Philip was appointed as a Director on 1 January 2019 and became Chief Executive 
from 1 February 2019. His first ISP award was granted in February 2019.  Philip stood 
down as Chief Executive on 31 January 2024.
c Gavin stood down as Chief Executive on 31 January 2019 .
BT Group plc Annual Report 2024
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Annual remuneration report continued

Directors’ service agreements and letters of 
appointment
The following table sets out the dates on which directors’ service agreements/initial letters of appointment commenced and termination 
provisions:
Executive Directors
Commencement date
Termination provisions
Allison Kirkby
1 February 2024
Directors’ service agreements do not contain fixed term periods and are 
terminable by BT Group plc on 12 months’ notice and by the director on six 
months’ notice.
Simon Lowth
4 July 2016
Chairman and Independent Non-Executive Directors
Commencement date
Termination provisions
Adam Crozier
1 November 2021
The letter of appointment does not contain a fixed term period and is terminable 
by BT Group plc on 12 months’ notice and by the director on six months’ notice.
Ruth Cairnie 
6 April 2023
Letters of appointment do not contain fixed term periods and are terminable by 
either party on three months’ written notice.
Maggie Chan Jones
1 March 2023
Steven Guggenheimer
1 October 2022
Isabel Hudson
1 November 2014
Matthew Key
25 October 2018
Sara Weller
16 July 2020
Non-Independent, Non-Executive Director
Commencement date
Termination provisions
Raphael Kübler
30 January 2024
Appointed as a Non-Independent, Non-Executive Director under the terms of the 
Relationship Agreement between BT Group plc and Deutsche Telekom. The 
appointment is terminable immediately by either party.
As announced on 7 May 2024, Tushar Morzaria joined the Board as an Independent Non-Executive Director with immediate effect.  In 
addition, Isabel Hudson will step down from the Board at the conclusion of the AGM on 11 July 2024.   
There are no other service agreements, letters of appointment or material contracts, existing or proposed, between BT Group plc and any 
of the directors. There are no arrangements or understandings between any director or executive officer and any other person pursuant 
to which any director or executive officer was selected to serve. There are no family relationships between the directors.
Independent Non-Executive Directors’ letters of appointment
Each Independent Non-Executive Director has an appointment letter setting out the terms of his or her appointment. We ask each Non-
Executive Director to allow a minimum commitment of 22 days each year, subject to Committee responsibilities, and to allow slightly 
more in the first year in order to take part in the induction programme. The actual time commitment required in any year may vary 
depending on business and additional time may be required during periods of increased activity.
The service agreements and letters of appointment are available for inspection by shareholders at BT Group plc’s registered office.
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Consideration of colleague and stakeholder views
Our colleagues are vital to our business and we believe in fairness throughout the group. There are several general reward principles 
which we apply at all levels:
– We’ll provide a competitive package with reference to the relevant market for each colleague
– We’ll ensure colleagues can share in the success of the business, and through the operation of all-employee share plans encourage 
colleagues to become shareholders
– Where appropriate, variable remuneration is provided to incentivise employees towards driving the strategic aims of the business. 
Performance is based on both individual performance and the performance of the group, using a consistent framework for our senior 
management team and the majority of other colleagues
– We offer a range of employee benefits, many of which are available to all colleagues
– We aim for transparency and a fair cascade of remuneration throughout the group
– Employment conditions for all colleagues reflect our values and are commensurate with those of a large publicly listed company, 
including high standards of health and safety, and a strong commitment to inclusion, diversity and wellbeing.
The Committee supports fairness and transparency of remuneration arrangements and the Policy has been designed to align with the 
remuneration philosophy and principles that underpin remuneration across the wider group. To support this, the Committee receives 
regular updates on HR policies and reward practices for the wider workforce as well as updates on employee relations.
Whilst the Committee does not directly consult with our employees as part of the process of determining executive pay, the Board does 
receive feedback from employee surveys that take into account remuneration throughout the organisation. The Designated Non-
Executive Director for Workforce Engagement also updates the Committee on sentiments being raised by our colleagues in relation to the 
remuneration of our workforce and related decisions, as raised by the Colleague Board through their ‘hot topics’ discussions.
When setting Executive Directors’ remuneration, the Committee considers the remuneration of other senior managers and colleagues in 
the group more generally to ensure that arrangements for Executive Directors are appropriate in this context. When determining salary 
increases for Executive Directors, the Committee considers the outcome of the wider pay review for the group.
Chief Executive pay ratio
The table below sets out the Chief Executive pay ratios as at 31 March 2024, as well as those reported in respect of the prior five years. 
This report will build up over time to show a rolling ten-year period.
The ratios compare the single total figure of remuneration of the Chief Executive with the equivalent figures for the UK lower quartile 
(P25), median (P50) and upper quartile (P75) employees.
A significant proportion of the Chief Executive’s remuneration is delivered through long term incentives, where awards are linked to share 
price movements over the longer term. This means that the ratios will depend significantly on long term incentive outcomes and may 
fluctuate from year to year, for example, the highest ratio was exhibited in 2024 due to an above-target bonus payout, and the vesting of 
two separate tranches of RSP awards to Philip Jansen. We believe that these ratios are appropriate given the size and complexity of the 
business, and are a fair reflection of our remuneration principles and practices.
We have used the ‘Option B’ methodology (based on gender pay reporting), as the most robust way to identify the individual reference 
points within an organisation with multiple operating segments.
Total remuneration
Employee remuneration
Pay ratio
Chief Executive
P25
P50
P75
P25
P50
P75
2019
£2,444,000
£34,281
£41,477
£51,594
71:1
59:1
47:1
2020
£3,248,000
£34,881
£42,173
£51,351
93:1
77:1
63:1
2021
£2,628,000
£35,569
£41,600
£50,391
74:1
63:1
52:1
2022
£3,350,000
£35,722
£40,059
£49,488
94:1
84:1
68:1
2023
£2,956,000
£36,960
£40,095
£50,999
80:1
74:1
58:1
2024
£3,953,000
£35,794
£37,617
£53,691
110:1
105:1
74:1
Base salary
Employee remuneration 
Pay ratio
Chief Executive
P25
P50
P75
P25
P50
P75
2019
£1,222,000
£30,090
£35,918
£41,740
37:1
31:1
27:1
2020
£1,100,000
£31,144
£37,321
£42,800
35:1
29:1
26:1
2021
£1,100,000
£31,842
£35,606
£42,836
35:1
31:1
26:1
2022
£1,100,000
£31,637
£35,017
£43,908
35:1
31:1
25:1
2023
£1,100,000
£33,144
£35,948
£44,986
33:1
31:1
24:1
2024
£1,100,000
£31,973
£34,100
£45,948
34:1
32:1
24:1
BT Group plc Annual Report 2024
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Corporate governance report
Remuneration in context

The total FTE remuneration paid during the year in question for each employee in each of the groups was then calculated, on the same 
basis as the information set out in the ‘single figure’ table for the Chief Executive. Bonus payments in respect of each year have been 
determined based on the latest available information at the time of analysis. The median total remuneration figure for each group was 
then used to determine the three ratios.
Percentage change in remuneration of the Executive and Non-Executive Directors and all employees
BT Group plc, our parent company, employs our Chairman, Executive and Non-Executive Directors only, and as such no meaningful 
comparison can be drawn based on the parent company alone, as is required by the reporting regulations.
Instead, we have chosen to present a comparison with our UK management and technical employee population, comprising around 
23,000 colleagues.
We believe this is the most meaningful comparison given the nature of our workforce, as this group has similar performance-related pay 
arrangements as our Executive Directors. This is also consistent with prior year disclosures.
The salary/fee levels set out in the table below are in accordance with the Policy. Any increase in fees paid to the Non-Executive Directors 
reflects both the annual fee review as well as any changes in role including additional Committee responsibilities. 
FY24 (% change)
FY23 (% change)
FY22 (% change)
FY21 (% change)
Salary/
fees
Benefits
Annual 
bonus
Salary/
fees
Benefits
Annual 
bonus
Salary/
fees
Benefits
Annual 
bonus
Salary/
fees
Benefits
Annual 
bonus
Chairman
Adam Crozier
 0% 
 (8%) 
–
 0% 
1,100%
–
–
–
–
–
–
–
Executive Directors
Allison Kirkbya
 130%  338% 
–
 1% 
 100% 
–
 0% 
 6% 
–
–
Philip Jansenb
 0% 
 (5) %
 51% 
 0% 
 13% 
 (27) %
 0% 
 2% 
 0% 
 0% 
 (14) %
 0% 
Simon Lowth
 3% 
 4% 
 59% 
 2% 
 5% 
 (26) %
 0% 
 (4) %
 0% 
 0% 
 (5) %
 (2) %
Non-Executive Directors
Adel Al-Salehc
–
–
–
–
–
–
–
–
–
–
–
–
Ruth Cairnied
–
–
–
Maggie Chan Jones
 0% 
 0% 
–
–
–
–
Ian Cheshiree
 0% 
 0% 
–
 8% 
–
–
 8% 
 19% 
–
–
Iain Conne
 0% 
 0% 
–
 1% 
–
–
 0% 
 33% 
–
–
Steve Guggenheimer
 0%  140% 
–
–
–
–
Isabel Hudson
 1%  100% 
–
 1% 
 0% 
–
 0% 
 4% 
 (66) %
–
Matthew Key
 9%  100% 
–
 9% 
 100% 
–
 2% 
 13% 
–
–
Raphael Küblerc
–
–
–
Sara Weller
 1% 
 0% 
–
 5% 
–
–
 0% 
–
–
–
UK management colleagues
 5.5% 
 0% 
 53% 
 3% 
 0% 
 (25) %
 0% 
 0% 
 0% 
 0% 
 0% 
 18% 
a Allison was appointed as Chief Executive during FY24 so the increase reflects her change in responsibilities and benefits in line with the Policy.  
b Philip received his salary and benefits until he stood down on 31 January 2024. The leaving arrangements for Philip are fully disclosed under Leaving arrangements for Philip Jansen 
on page 116. 
c Under the terms of the Relationship Agreement between BT Group plc and Deutsche Telekom and the Directors’ letter of appointment, no remuneration is payable for this position.
d Ruth joined during FY24 and so no relevant comparison can be presented.
e The director left during FY24 and any reduction reflects the pro-rated remuneration. 
BT Group plc Annual Report 2024
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Corporate governance report

Relative importance of the spend on pay
The table below shows the percentage change in total remuneration paid to all employees compared to expenditure on dividends and 
share buybacks.
Area
FY24 (£m)
FY23 (£m)
% change
Remuneration paid to all employees
4,921 
4,952 
 (0.63) %
Dividends/share buybacksa
840
940
 (10.6) %
a Includes share purchases by the Trust as set out in note 21 to the consolidated financial statements.
Inclusion and diversity
Embracing inclusion, diversity, accessibility and equality is core to our people strategy and critical to our growth. Our Inclusion, Equity and  
Diversity Strategy is a programmatic, evidence-based approach to help us understand and remove bias and other cognitive barriers from 
policies, processes, systems and decision making.
It supports our aim to build the strongest foundations by making sure we apply an inclusion lens to everything we do and by promoting a 
culture where colleagues can thrive.
More details on our Inclusion, Equity and Diversity Strategy can be found on pages 31 to 33.
Gender pay gap reporting
At a group-level, our median hourly pay gap between male and female colleagues has decreased to 5.6% (6.1% in 2022). This remains 
favourably below the high-tech industry median of 12.9%, and the UK national median of 14.3% (ONS provisional).
Our Gender Pay Gap statement sets out the key information required under legislation and is available on our website bt.com/
genderpaygap
Ruth Cairnie
Chair of the Remuneration Committee
15 May 2024
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Corporate governance report
Remuneration in context continued

The directors are responsible for preparing the 
Annual Report and the group and parent company 
financial statements in accordance with 
applicable law and regulations.
Company law requires the directors to prepare group and parent 
company financial statements for each financial year. Under that 
law they are required to prepare the group financial statements in 
accordance with UK-adopted international accounting standards 
and with the requirements of the Companies Act 2006. The parent 
company meets the definition of a qualifying entity under FRS 100 
and the company financial statements are prepared in accordance 
with United Kingdom Generally Accepted Accounting Practice 
(FRS 101 “Reduced disclosure framework”, and applicable law). 
Under company law the directors must not approve the financial 
statements unless they are satisfied that they give a true and fair 
view of the state of affairs of the group and parent company, and 
of the group’s profit or loss for that period. In preparing each of the 
group and parent company financial statements, the directors are 
required to:
– select suitable accounting policies and apply them consistently
– make judgements and estimates that are reasonable, relevant, 
reliable and, in respect of the parent Company financial 
statements only, prudent
– state whether the group financial statements have been 
prepared in accordance with the UK-adopted international 
accounting standards
– state whether applicable UK accounting standards have been 
followed with regards to the parent company financial 
statements, subject to any material departures disclosed and 
explained in the parent company financial statements
– assess the group and parent company’s ability to continue as a 
going concern and disclose, as applicable, matters related to 
going concern
– use the going concern basis of accounting unless they either 
intend to liquidate the group or the parent company or to cease 
operations or have no realistic alternative but to do so.
The directors are responsible for keeping adequate accounting 
records that are sufficient to show and explain the parent 
company’s transactions and disclose with reasonable accuracy, at 
any time, the financial position of the parent company, and enable 
them to ensure that its financial statements comply with the 2006 
Act. They are responsible for such internal control as they 
determine is necessary to enable the preparation of financial 
statements that are free from material misstatement, whether due 
to fraud or error. They have general responsibility for taking such 
steps as are reasonably open to them to safeguard the assets of 
the group and to prevent and detect fraud and other irregularities.
Under applicable law and regulations, the directors are also 
responsible for preparing an annual strategic report, directors’ 
report, report on directors’ remuneration and corporate 
governance statement that comply with such law and regulation.
The directors are responsible for the maintenance and integrity of 
the corporate and financial information included on the BT Group 
website. Legislation in the UK governing the preparation and 
dissemination of financial statements may differ from legislation in 
other jurisdictions.
In accordance with Disclosure Guidance and Transparency Rule 
(“DTR”) 4.1.16R, the financial statements will form part of the 
annual financial report prepared under DTR 4.1.17R and 4.1.18R. 
The auditor’s report on these financial statements provides no 
assurance over whether the annual financial report has been 
prepared in accordance with those requirements.
Responsibility statement of the Board in respect of the 
annual financial report
We confirm, to the best of our knowledge that:
– the financial statements, prepared in accordance with the 
applicable set of accounting standards, give a true and fair view 
of the assets, liabilities, financial position and profit or loss of the 
group and the undertakings included in the consolidation taken 
as a whole
– the Strategic report and the Report of the directors include a 
fair review of the development and performance of the business 
and the position of the group and the undertakings included in 
the consolidation taken as a whole, together with a description 
of the principal risks and uncertainties that they face.
We consider that the Annual Report and Accounts, taken as a 
whole, is fair, balanced and understandable and provides the 
information necessary for shareholders to assess the group’s 
position, performance, business model and strategy.
This responsibility statement was approved by the Board on 
15 May 2024 and was signed on its behalf by:
Allison Kirkby
Chief Executive
Simon Lowth
Chief Financial Officer
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Corporate governance report
Statement of directors’ responsibilities in respect of 
the Annual Report and the financial statements

The directors present the Report of the 
directors, together with audited financial 
information for the year ended 31 March 2024. 
The Report of the directors also encompasses the 
entirety of our Corporate governance report on 
pages 83 to 130 for the purpose of section 463 
of the Companies Act 2006 (the 2006 Act). The 
Report of the directors together with the 
Strategic report on pages 1 to 82 form the 
Management report for the basis of DTR 4.1.5R.
In accordance with DTR 4.1.14R, the financial 
statements will form part of the annual 
financial report prepared using the single 
electronic reporting format under the TD ESEF 
Regulation. The Auditor’s report on these 
financial statements provides no assurance 
over the ESEF format.
Material accounting estimates, key judgements and 
significant accounting policies
Our critical accounting estimates, key judgements and significant 
accounting policies conform with UK-adopted International 
Financial Reporting Standards (IFRS) and IFRSs issued by the 
International Accounting Standards Board (IASB) and are set 
out on page 150 of the consolidated financial statements. The 
directors have reviewed these policies and applicable estimation 
techniques and have confirmed that they are appropriate for the 
preparation of the FY24 consolidated financial statements.
Disclosure of information to the auditor
As far as each of the directors is aware, there is no relevant audit 
information (as defined by section 418(3) of the 2006 Act) that 
hasn’t been disclosed to the auditor. Each of the directors confirms 
that all steps have been taken that ought to have been to make 
them aware of any relevant audit information and to establish that 
the auditor has been made aware of that information.
Going concern
In line with IAS 1 ‘Presentation of financial statements’, and FRC 
guidance on ‘risk management, internal control and related 
financial and business reporting’, management has taken into 
account all available information about the future for a period of 
at least, but not limited to, 12 months from the date of approval 
of the financial statements when assessing the group’s ability 
to continue as a going concern.
The Strategic report on pages 1 to 82 includes information on 
the group structure, strategy and business model, the performance 
of each customer-facing unit and the impact of regulation and 
competition. The Group performance section on pages 50 to 57 
includes information on our group financial results, financial 
outlook, cash flow and net debt, and balance sheet position. Notes 
23, 25, 26 and 28 of the consolidated financial statements include 
information on the group’s investments, cash and cash 
equivalents, borrowings, derivatives, financial risk management 
objectives, hedging policies and exposure to interest, foreign 
exchange, credit, liquidity and market risks.
Our principal risks and uncertainties are set out on pages 63 to 70 
including details of each risk and how we manage them. The 
directors carried out a robust assessment of the principal risks 
affecting the group, including any that could threaten our business 
model, future performance, insolvency or liquidity. 
This assessment is consistent with the assessment of our viability, 
as set out on pages 81 to 82, which has been based on the 
Company’s strategy, balance sheet and financing position, 
including our £2.1bn undrawn committed borrowing facility which 
matures in March 2027, and the potential impact of Our principal 
risks and uncertainties on pages 63 to 70; and which estimates 
the financial impact for a severe but plausible outcome for each 
risk, both individually and in combination through stochastic risk 
modelling. This stress testing confirmed that existing projected 
cash flows and cash management activities provide us with 
adequate headroom over the going concern assessment period. 
Having assessed the principal and emerging risks, the directors 
considered it appropriate to adopt the going concern basis of 
accounting when preparing the financial statements. This 
assessment covers the period to May 2025, which is consistent 
with FRC guidance. When reaching this conclusion, the directors 
took into account the group’s overall financial position (including 
trading results and the ability to repay term debt as it matures 
without recourse to refinancing) and the exposure to principal 
risks (including severe but plausible downsides, refer to the 
Viability statement on pages 81 to 82).
At 31 March 2024, the group had cash and cash equivalents of 
£0.4bn and current asset investments of £2.4bn. The group also 
had access to committed borrowing facilities of £2.1bn. These 
facilities were undrawn at the period-end and are not subject to 
renewal until March 2027.
Independent advice
The Board has a procedure that allows directors to seek 
independent professional advice at our expense. All directors also 
have access to the advice and services of the Company Secretary 
and her nominated delegate.
Directors’ and officers’ liability insurance and 
indemnity
We routinely buy insurance cover for directors, officers and 
employees in positions of managerial supervision of BT Group plc 
and its subsidiaries. This is intended to protect against defence 
costs, civil damages and, in some circumstances, civil fines and 
penalties (provided they are insurable) following an action 
brought against them in their personal capacity. The policy also 
covers individuals serving as directors of other companies or of 
joint ventures, or on boards of trade associations or charitable 
organisations at the group’s request. The insurance protects the 
directors and officers directly in circumstances where, by law, 
BT Group plc cannot provide an indemnity. It also provides the 
group, subject to a retention, with cover against the cost of 
indemnifying a director or officer. One layer of insurance is ring-
fenced for the directors of BT Group plc.
As at 15 May 2024, and throughout FY24, BT Group plc’s wholly 
owned subsidiary, British Telecommunications plc, has provided 
an indemnity for a group of people similar to the group covered by 
the above insurance. Neither the insurance nor the indemnity 
provides cover where the individual is proven to have acted 
fraudulently or dishonestly.
As permitted by BT Group plc’s Articles of Association, and to the 
extent permitted by law, the group indemnifies each of its 
directors and other officers against certain liabilities that may be 
BT Group plc Annual Report 2024
126
Corporate governance report
Report of the directors

incurred as a result of their positions within the group. The 
indemnity was in force throughout the tenure of each director 
during the last financial year, and remains in force.
Interest of management in certain transactions 
During and at the end of FY24, none of BT Group plc’s directors 
were materially interested in any material transaction in relation to 
the group’s business. None are materially interested in any 
currently proposed material transactions.
Power to authorise conflicts
All directors have a duty under the 2006 Act to avoid a situation in 
which he or she has, or can have, a direct or indirect interest that 
conflicts, or possibly may conflict, with the interests of the group. 
BT Group plc’s Articles of Association include provisions for 
dealing with directors’ conflicts of interest in accordance with the 
2006 Act. The group has procedures in place, which it follows, to 
deal with such situations. These require the Board to:
– consider each conflict situation separately on its particular facts
– consider the conflict situation in conjunction with its other duties 
under the 2006 Act
– keep records and Board minutes on any authorisations granted 
by directors and the scope of any approvals given
– regularly review conflict authorisation.
The Company Secretary maintains a conflicts of interest register.
The Conflicted Matters Committee identifies to what extent Board 
and Committee materials are likely to refer to a potential or actual 
conflict of interest between BT Group plc and Deutsche Telekom 
and, as a result, what materials should be shared with our Non- 
Independent, Non-Executive Director and Deutsche Telekom 
nominated representative. He owes duties to both BT Group plc 
and Deutsche Telekom, and the Conflicted Matters Committee 
helps him comply with his fiduciary duties, although ultimate 
responsibility rests with him.
Systems of risk management and internal control 
The Board is responsible for reviewing the group’s systems of risk 
management and internal control each year, and for ensuring their 
effectiveness, including in respect of relevant assurance activities. 
These systems are designed to manage, rather than eliminate, 
risks we face that may prevent us from achieving our business 
objectives and delivering our strategy. Any system can provide 
only reasonable, and not absolute, assurance against material 
misstatement or loss.
Our group risk management framework is simple and consistent, 
and defines our (1) risk mindset, (2) risk process and activities; and 
finally (3) governance. The framework:
– provides the business with the tools to take on the right risks and 
make smart risk decisions
– supports the identification, assessment and management of the 
principal risks and uncertainties faced by the group
– is an integral part of BT Group’s annual strategic review cycle.
The framework was designed in accordance with the FRC 
guidance on risk management, internal control and related 
financial and business reporting and has been in operation 
throughout the year and up to the date on which this document 
was approved. The framework was reviewed in FY24 and was 
deemed effective. Continuous improvements were made in FY24, 
including the rollout of a new training programme to establish a 
core level of understanding of expectations across our senior 
leadership team and all those with roles that are key to making our 
framework a success. There was also focus on embedding our Key 
Control Framework, a set of Group requirements, defined by 
subject matter experts, to be implemented consistently across all 
Units.
More information on our group risk management framework can 
be found in the Risk management section on pages 61 to 62.
Internal audit carry out periodic assessments of the quality of risk 
management and control, promote effective risk management 
across all our units and report to management and the Audit & Risk 
Committee on the status of specific areas identified for 
improvement. We do not cover joint ventures and associates not 
controlled by the group in the scope of our group risk 
management framework. Such third parties are responsible for 
their own internal control assessment.
Furthermore, the Audit & Risk Committee, on behalf of the Board, 
reviews the effectiveness of the systems of risk management and 
internal control across the group. Further details on how the Audit 
& Risk Committee fulfils these duties can be found on page 102.
Capital Management and Funding Policy
The objective of our Capital Management Policy is to target an 
overall level of debt consistent with our credit rating objectives, 
while investing in the business, supporting our pension schemes 
and meeting our Distribution Policy.
The Board regularly reviews the group’s capital structure. 
Management proposes actions and produces analyses which 
reflect the group’s investment plans and risk characteristics, as 
well as the macroeconomic conditions in which we operate.
Our Funding Policy is to raise and invest funds centrally to meet 
the group’s anticipated requirements. We use a combination of 
capital market bond issuance and committed borrowing facilities 
to fund the group. When issuing debt, in order to avoid refinancing 
risk, group treasury will take into consideration the maturity profile 
of the group’s debt portfolio, financial market conditions as well as 
forecast cash flows.
See note 28 to the consolidated financial statements for details of 
our Treasury Policy.
Financial instruments
Details of the group’s financial risk management objectives, 
policies of the group and exposure to interest risk, credit risk, 
liquidity risk and foreign exchange are given in note 28 to the 
consolidated financial statements.
Credit Risk Management Policy
We take proactive steps to minimise the impact of adverse market 
conditions on our financial instruments. In managing investments 
and derivative financial instruments, group treasury monitors the 
credit quality across treasury counterparties and actively manages 
any exposures that arise. Management within the business units 
also actively monitors any exposures arising from trading balances.
Off-balance sheet arrangements
Other than the financial commitments and contingent liabilities 
disclosed in note 31 to the consolidated financial statements, 
there are no off-balance sheet arrangements that have, or are 
reasonably likely to have, a current or future material effect on:
– our financial condition
– changes in financial condition
– revenues or expenses
– results of operations
– liquidity
– capital expenditure
– capital resources.
BT Group plc Annual Report 2024
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Corporate governance report

We use a supply chain financing programme with a limited number 
of suppliers with short payment terms to extend them a more 
typical payment term. More details are disclosed in note 17 to the 
consolidated financial statements.
Legal proceedings
The group is involved in various legal proceedings, including actual 
or threatened litigation and government or regulatory 
investigations. For further details of legal and regulatory 
proceedings to which the group is party, please see note 18 to the 
consolidated financial statements.
Apart from the information disclosed in note 18 to the 
consolidated financial statements, the group does not currently 
believe that there are any legal proceedings, government or 
regulatory investigations that may have a material adverse impact 
on the operations or financial condition of the group. In respect of 
each of the claims described in note 18, the nature and 
progression of such proceedings and investigations can make it 
difficult to predict the impact they will have on the group. Many 
factors prevent us from making these assessments with certainty, 
including the fact that some such proceedings or investigations 
are in early stages, no damages or remedies have been specified, 
and/or the frequently slow pace of litigation.
Other information – Listing Rules
For the purposes of the Listing Rule (LR) 9.8.4R, the information 
below is disclosed as follows:
Section information
Page
LR 9.8.4R(4)
50
LR 9.8.4R(12)
See below
LR 9.8.4R(13)
See below
In respect of LR 9.8.4R(12) and (13), the trustee of the BT Group 
Employee Share Ownership Trust (the Trust) agrees to waive 
dividends payable on the BT Group plc shares it holds for satisfying 
awards under the group’s executive share plans.
Under the rules of these share plans, the dividends are reinvested 
in BT Group plc shares that are added to the relevant share 
awards.
No other information is required to be disclosed pursuant to          
LR 9.8.4R.
Other statutory information – the 2006 Act
Certain provisions of the 2006 Act (or regulations made pursuant 
thereto) require us to make additional disclosures within the 
Report of the directors. The disclosures referred to below are 
included elsewhere in this Annual Report and incorporated by 
reference into the Report of the directors:
Section information
Page
Future developments
1 to 82
Particulars of any important events affecting BT 
Group or any of its subsidiary undertakings which 
have occurred since the end of the financial year
221
Research and development activities
15
How the directors have engaged with UK 
employees, had regard to UK employee interests, 
and the effect of that regard, including on principal 
decisions during the year
24, 41
and
90 to 93
How the directors have had regard to the need to 
foster business relationships with suppliers, 
customers and others, and the effect of that regard, 
including on principal decisions during the year
26 to 27, 
40 to 45
and
90 to 93
Greenhouse gas emissions, energy consumption 
and energy efficiency action
38,72
and 80 
Structure of BT Group plc’s share capital 
(including the rights and obligations attaching to 
the shares)
147
Significant agreements to which BT Group plc is a 
party that take effect, alter or terminate upon a 
change of control following a takeover
n/a
Related undertakings
226 to 230
The following disclosures are not covered elsewhere 
in this Annual Report:
– BT Group has two employee share ownership trusts that hold  
BT Group plc shares for satisfying awards under our various 
employee share plans
– the trustee of the BT Group Employee Share Investment Plan 
may invite participants, on whose behalf it holds shares, to direct 
it how to vote in respect of those shares. If there is an offer for 
the shares or another transaction that would lead to a change of 
control, such participants may direct the trustee to accept the 
offer or agree to the transaction
– in respect of shares held in the Trust, the trustee abstains from 
voting those shares if there is an offer for the shares. The trustee 
does not have to accept or reject the offer but will have regard to 
the interests of the participants, may consult with the participants 
to obtain their views on the offer, and may otherwise take any 
action with respect to the offer that it thinks is fair
– EasyShare is the group’s corporate sponsored nominee service, 
which allows UK and European Economic Area resident 
shareholders to hold BT Group plc shares electronically
– EasyShare is administered by Equiniti Financial Services Limited. 
As at 15 May 2024, 419m shares were held in EasyShare (4.21% 
of the issued share capital (4.22% excluding treasury shares)) 
on behalf of BT Group plc shareholders
– no person holds securities carrying special rights with regard to 
control of the group
– our share registrar, Equiniti, must receive proxy appointment 
and voting instructions not less than 48 hours before any 
general meeting (see page 130)
– the business of BT Group is managed by the Board. The 
directors may exercise all the powers of BT Group plc, subject to 
the Articles of Association, legislation and regulation. This 
includes the ability to exercise the authority to allot or purchase 
BT Group plc shares pursuant to shareholders passing an 
ordinary resolution at the Annual General Meeting (AGM)
– we have no agreements with directors providing for 
compensation for loss of office or employment as a result of a 
takeover. Similarly, there is no provision for this in our standard 
employee contracts
– we’re not aware of any agreements between shareholders that 
may result in restrictions on the transfer of shares or on 
voting rights.
BT Group plc Annual Report 2024
128
Corporate governance report
Report of the directors continued

Articles of Association
BT Group plc’s current Articles of Association were adopted 
pursuant to a resolution passed at the AGM of BT Group plc held 
on 15 July 2021 and contain, amongst others, provisions on the 
rights and obligations attaching to BT Group plc’s shares.
The Articles of Association may only be amended by special 
resolution at a general meeting of the shareholders in accordance 
with applicable legislation.
A copy of the current Articles of Association is available at 
bt.com/articles
Directors’ appointment, retirement and removal
The Articles of Association regulate the appointment and removal 
of directors, as does the 2006 Act and related legislation. The 
Board, and shareholders (by ordinary resolution), may appoint a 
person who is willing to be elected as a director, either to fill a 
vacancy or as an additional director. At every AGM, all directors 
must automatically retire. A retiring director is eligible for election 
or re-election, as applicable. In addition to any power of removal 
under the 2006 Act, the shareholders can pass an ordinary 
resolution to remove a director.
Raphael Kübler was appointed as a Non-Independent, Non-
Executive Director under the terms of the Relationship Agreement 
between BT Group plc and Deutsche Telekom. His appointment is 
terminable immediately by either party.
Share rights
(a) Voting rights
On a show of hands, every shareholder present in person or by 
proxy at any general meeting has one vote and, on a poll, every 
shareholder present in person or by proxy has one vote for each 
share which they hold.
There are no restrictions on exercising voting rights except in 
situations where BT Group plc is legally entitled to impose such a 
restriction (for example where a notice under section 793 of the 
2006 Act has been served).
(b) Variation of rights
If the share capital of BT Group plc were to be split into different 
classes of shares by special resolution, the special rights attached 
to any of those classes can be varied or withdrawn either: (i) with 
the sanction of a special resolution passed at a separate meeting 
of the holders of the shares of that class; or (ii) with the consent in 
writing of the holders of at least 75% in nominal value of the issued 
shares of that class. BT Group plc can issue new shares and attach 
any rights and restrictions to them, as long as this is not restricted 
by special rights previously given to holders of any existing shares. 
Subject to this, the rights of new shares can take priority over the 
rights of existing shares, or existing shares can take priority over 
them, or the new shares and the existing shares can rank equally. 
BT Group plc currently has one class of shares.
Transfer of shares
There is no specific restriction on the transfer of BT Group plc 
shares in the group, which is governed by the Articles of 
Association and prevailing legislation.
Political donations
Our policy is that no company in the group will make contributions 
in cash or in kind to any political party, whether by gift or loan. 
However, the definition of political donations used in the 2006 Act 
is significantly broader than the sense in which these words are 
ordinarily used. The 2006 Act’s remit could cover making 
members of Parliament and others in the political world aware of 
key industry issues and matters affecting BT Group plc, and 
enhancing their understanding of the group.
The authority for political donations requested at the 2024 AGM is 
not intended to change this policy. It does, however, ensure that 
the group continues to act within the provisions of the 2006 Act, 
requiring companies to obtain shareholder authority before they 
make donations to political parties and/or political organisations 
as defined in the 2006 Act. During FY24, BT Group plc’s wholly 
owned subsidiary, British Telecommunications plc, paid the costs 
of attending events at (i) the Labour Party Conference and 
Business Conference; (ii) the Conservative Party Conference; and 
(iii) the Liberal Democrats Business Day. These costs totalled 
£9,343 (FY23: £5,848). No company in the BT Group made any 
loans to any political party.
Substantial shareholdings
As at 31 March 2024, BT Group plc had received notice, under the 
DTRs, in respect of the following holdings of 3% or more of the 
voting rights in its issued ordinary share capital:
Date of notification
Shares
% of total 
voting rights
Altice UK S.à r.l. 
22 May 2023
2,435,476,188
 24.50% 
T-Mobile 
Holdings
23 March 2018
1,196,175,322
 12.06% 
BlackRock, Inc.
13 June 2023
470,325,337
 4.73% 
As at 15 May 2024, BT Group had not received any further such 
notices under the DTRs.
Colleague engagement
Engaging with our colleagues is critical to creating a culture where 
they can be their best and contribute to our purpose, ambition, 
strategy and long term success.
Engaging with our colleagues takes many forms, including 
through:
– the Board receiving regular updates from the Chief Executive 
and Chief Human Resources Officer on colleagues, key people 
strategy initiatives, culture and overall sentiment in the 
organisation
– our Designated Non-Executive Director for Workforce 
Engagement and the Colleague Board. The Colleague Board 
was in place throughout most of FY24, however the Board made 
the decision to disband the Colleague Board and going forward 
the Designated Non-Executive Director for Workforce 
Engagement will engage in a comprehensive colleague 
outreach programme in its place (see pages 90 to 91)
– our quarterly Your Say colleague engagement surveys
– regular colleague communications.
Colleagues are kept well informed on matters such as the strategy 
and performance of the group, including after certain key events 
such as results and trading updates. We work with our highly 
active, engaged and award-winning People Networks. These 
colleague-driven groups raise awareness and advocate for change 
both inside and outside BT Group.
Colleague engagement is 75%, +5% vs UK external benchmarks 
and +4% since September. The resolution of industrial action and 
agreement for a two-year pay award have contributed to the 
improvement in sentiment. 
BT Group plc Annual Report 2024
129
Corporate governance report

We encourage all of our colleagues to become shareholders in the 
business through the operation of all-employee share plans. We 
annually consider which all-employee plans to offer, both in the 
UK and globally.
Employees with disabilities
We’re an inclusive employer and actively encourage the 
recruitment, development, promotion and retention of disabled 
people.
In FY24 we focused on three areas to support our disabled 
colleagues: 
– we committed to improving our workplace adjustments process 
so that colleagues can get the adjustments that they need when 
they need them, with a new initiative in the UK launched in July 
with plans to extend the rollout to India
– a development programme specifically aimed at disabled 
colleagues who are junior managers has been piloted, and work 
is under consideration for rollout to all career levels
– we want all colleagues and people managers to understand 
disability and how to support disabled colleagues, so we have 
launched three disability advocacy training pathways and 
published them to our internal disability hub for access by all 
colleagues.
This is the first year that we reported our disability pay gap; it 
reflects our drive for equal opportunity across all characteristics. 
At the time of the snapshot date in April 2023, the mean and 
median pay gaps were low, with a mean gap of 0.7% and a zero 
median gap. Further information can be found on page 32.
We continued our partnership with the Business Disability Forum, 
and we will be working to make sure that we are able to meet and 
exceed the commitments we made to obtain our Disability 
Confident leader status and our membership of Valuable 500. 
Read more on inclusion and diversity at 
bt.com/inclusion-and-diversity
AGM
Resolutions
At the 2024 AGM, shareholders will be asked to vote on all 
resolutions including the Annual Report, the Report on directors’ 
remuneration, the election/re-election of directors, the 
reappointment of KPMG LLP as our external auditor and to 
authorise the Audit & Risk Committee to agree its remuneration, 
giving authority to the directors to allot BT Group plc shares and 
disapply pre-emption rights.
Before the AGM, our share registrar, Equiniti, will count the proxy 
votes for and against each resolution, as well as votes withheld. 
The voting results will be announced by way of a stock exchange 
announcement and published on our website as soon as 
reasonably practicable following the conclusion of the AGM. As at 
previous AGMs, we will take votes on all matters at the 2024 AGM 
on a poll.
The separate Notice of meeting 2024, which we send to all 
shareholders who have requested shareholder documents by post, 
contains the resolutions (with explanatory notes) which we will 
propose at the 2024 AGM on 11 July 2024. We notify all 
shareholders of the publication of these documents which are 
available on our website at bt.com/annualreport
Authority to purchase shares
The authority given at the 2023 AGM for BT Group plc to purchase 
in the market 993m of its shares, representing 10% of BT Group 
plc’s issued share capital (excluding treasury shares), expires at 
the conclusion of the 2024 AGM. We will ask shareholders to give 
a similar authority at the 2024 AGM.
During FY24 and up to 15 May 2024, no shares were purchased 
under this authority.
At the start of the year, £36m shares (having a total nominal value 
of £1.8m, and constituting 0.36% of the issued share capital 
(0.36% excluding treasury shares)) were held as treasury shares. 
During FY24, 19.8m treasury shares (having a nominal value of 
£995,000, and constituting 0.19% of the issued share capital 
0.20% excluding treasury shares)) were transferred to meet 
BT Group plc’s obligations under its employee share plans. At 
31 March 2024, a total of 16.3m shares (having a total nominal 
value of £815,000, and constituting 0.16% of the issued share 
capital 0.16% excluding treasury shares)) were held as treasury 
shares (see note 20 to the consolidated financial statements).
Since 31 March 2024 (up to and including 15 May 2024), 552,071 
treasury shares (having a nominal value of £27,600, and 
constituting 0.005% of the issued share capital (0.005% excluding 
treasury shares)) have been transferred to meet BT Group plc’s 
obligations under its employee share plans.
At 15 May 2024, a total of 15.7m shares (having a nominal value of 
£787,300, and constituting 0.16% of the issued share capital 
(0.16% excluding treasury shares)) were held as treasury shares.
In addition, during FY24 and up to 15 May 2024 the Trust 
purchased 98.2m BT Group plc shares for a total consideration of 
£132.5m. The Trust held 158.4m shares both at 31 March 2024 
and 15 May 2024.
Cross-reference to the Strategic report
We have chosen to include the following information in the 
Strategic report in line with the 2006 Act (otherwise required by 
law to be included in the Report of the directors):
– the final dividend proposed by the Board (page 51)
– an indication of likely future developments in the business of   
BT Group plc and its group (pages 1 to 82)
– an indication of our research and development activities (page 
15)
– information about how the directors engaged with UK 
employees, had regard to UK employee interests, and the effect 
of that regard, including on principal decisions during the year 
(pages 24, 41 and 90 to 91)
– information about how the directors have had regard to the 
need to foster business relationships with suppliers, customers 
and others, and the effect of that regard, including on principal 
decisions during the year (pages 26 to 27, 40 to 45 and 90 to 
91)
– information about greenhouse gas emissions, energy 
consumption and energy efficiency action (pages 38, 71 to 80).
By order of the Board
Sabine Chalmers
Group General Counsel, Company Secretary & 
Director Regulatory Affairs
15 May 2024
BT Group plc Annual Report 2024
130
Corporate governance report
Report of the directors continued

Look out for these throughout the report
Contents
Significant 
accounting policies
Independent auditor’s report
132
Critical and key accounting estimates 
and significant judgements
Group income statement
145
Group statement of comprehensive income
146
Group balance sheet
147
Group statement of changes in equity
148
Group cash flow statement
149
Notes to the consolidated financial statements
150
Basis of preparation
150
Critical accounting estimates and significant judgements
151
Material accounting policies that apply to the overall 
financial statements
152
Segment information 
153
Revenue
156
Operating costs
160
Employees
161
Audit, audit related and other non-audit services
162
Specific items
162
Taxation
164
EPS
167
Dividends
167
Intangible assets
168
Property, plant and equipment
172
Leases
175
Trade and other receivables 
179
Trade and other payables
182
Provisions & contingent liabilities
183
Retirement benefit plans
185
Own shares (BT Group)
196
Share-based payments
196
Divestments & assets and liabilities classified as held for sale
198
Investments
201
Joint ventures and associates
202
Cash and cash equivalents
205
Loans and other borrowings (BT Group)
206
Finance expense and income
210
Financial instruments and risk management
211
Other reserves
218
Related party transactions
218
Financial commitments
219
Re-presentation of prior year comparatives
220
Post balance sheet events
221
BT Group – Financial Statements of BT Group plc
222
Related undertakings 
226
BT Group Additional Information/APM
231
BT Group plc Annual Report 2024
131
Financial statements
Financial 
statements

1. Our opinion is unmodified
In our opinion:
– the financial statements of BT Group plc give a true and fair view 
of the state of the Group’s and of the Parent Company’s affairs as 
at 31 March 2024, and of the Group’s profit for the year then 
ended;
– the Group financial statements have been properly prepared in 
accordance with UK-adopted international accounting 
standards;
– the Parent Company financial statements have been properly 
prepared in accordance with UK accounting standards, including 
FRS 101 Reduced Disclosure Framework; and
– the Group and Parent Company financial statements have been 
prepared in accordance with the requirements of the Companies 
Act 2006. 
What our opinion covers
We have audited the Group and Parent Company financial 
statements of BT Group plc (“the Company”) for the year ended 
31 March 2024 (“FY24”) included in the Annual Report, which 
comprise: 
Group 
– Group income statement,
– Group statement of comprehensive income,
– Group balance sheet,
– Group statement of changes in equity,
– Group cash flow statement
– Notes 1 to 33 to the Group financial statements, including the 
accounting policies in the respective notes.
Parent Company (BT Group plc)
– Company balance sheet
– Company statement of changes in equity
– Notes 1 to 3 to the Parent Company financial statements, 
including the accounting policies in note 1.
Basis for opinion
We conducted our audit in accordance with International 
Standards on Auditing (UK) (“ISAs (UK)”) and applicable law. Our 
responsibilities are described below. We believe that the audit 
evidence we have obtained is a sufficient and appropriate basis for 
our opinion. Our audit opinion and matters included in this report 
are consistent with those discussed and included in our reporting 
to the Audit and Risk Committee (“ARC”). 
We have fulfilled our ethical responsibilities under, and we remain 
independent of the Group in accordance with, UK ethical 
requirements including the FRC Ethical Standard as applied to 
listed public interest entities.
2. Overview of our audit
Factors driving our view of risks 
Our risk assessment is driven by understanding of the applicable 
financial reporting framework, our knowledge of the business, the 
industry and the wider economic environment in which BT Group 
plc operates. 
Revenue from non-long-term contracts remains a focus area due 
to the complexity arising from the large number of low value 
transactions managed through a number of distinct billing 
systems, and the complex IT landscape linking the billing systems 
together. 
In addition, the bespoke nature of the pricing structure within some 
of Business’ contracts means that there is a higher risk of 
processing error and fraud in relation to a proportion of Business’ 
revenue derived from certain billing systems and estimation 
uncertainty over the associated refund liabilities. 
In the current year the Group recognised an impairment charge 
against goodwill allocated to the Business cash generating unit 
(CGU) of £488mn (FY23: nil), reflecting the execution risk of the 
CGU’s business plan and increased uncertainty over the projected 
cashflows.
The valuation of the BT pension scheme (“BTPS”) defined 
obligation also remains a focus area as it is complex, relying on key 
actuarial assumptions such as discount rates, RPI, and mortality.
We continue to have a focus on the BTPS which holds diverse 
unquoted assets which are valued based on inputs not directly 
observable. The valuation of these assets requires the involvement 
of experts and significant judgement over the key unobservable 
input. 
We continue to identify the recoverability of the Parent Company 
investment in subsidiaries as a focus area for the Parent Company's 
standalone accounts. This is due to the materiality of the Parent 
Company's investment in subsidiaries compared to the company’s 
total assets.
The TNT Sport Joint venture company is in its second year of 
operations and all significant risks associated with the initial 
recognition of the balances relating to the disposal of the BT sports 
division and subsequent re-investment in the Sports JV are no 
longer applicable.
Key Audit Matters
Risk
FY24 vs FY23 
Item
Accuracy of revenue due to complex 
billing systems (Group) 
é
4.1
Impairment of Goodwill attributable to 
Business CGU (Group)
…
4.2
Valuation of defined benefit obligation 
of the BT pension scheme (BTPS) 
(Group)
çè
4.3
Valuation of unquoted investments in 
the BT pension scheme (BTPS) (Group)
ê
4.4
Recoverability of Parent company 
investment in subsidiaries (Parent 
Company)
çè
4.5
Audit and Risk Committee Interaction
During the year, the ARC met 6 times. KPMG are invited to attend 
all ARC meetings and are provided with an opportunity to meet 
with the ARC in private sessions without the Executive Directors 
being present. For each Key Audit Matter, we have set out 
communications with the ARC in section 4, including matters that 
required particular judgement for each. 
The matters included in the Audit and Risk Committee Chair’s 
report on pages 99 to 103 are materially consistent with our 
observations of those meetings. 
Our Independence
We have fulfilled our ethical responsibilities under, and remain 
independent of the Group in accordance with, UK ethical 
requirements including the FRC Ethical Standard as applied to 
listed public interest entities.
We have not performed any non-audit services during the year 
ended 31 March 2024 or subsequently which are prohibited by the 
FRC Ethical Standard. 
We were first appointed as auditor by the shareholders for the year 
ended 31 March 2019. The period of total uninterrupted 
engagement is for the 6 financial years ended 31 March 2024. 
Jonathan Mills has succeeded John Luke as the Lead Engagement 
Partner for the year ended 31 March 2024. The Group 
Engagement partner is required to rotate every 5 years. As these 
are the first set of the Group’s financial statements signed by 
Jonathan Mills, he will be required to rotate off after the FY28 
audit. 
BT Group plc Annual Report 2024
132
Financial statements
KPMG LLP’s Independent Auditor’s Report to the 
members of BT Group plc

The average tenure of partners responsible for component audits 
as set out in section 7 below is 3 years, with the shortest being 1 
year and the longest being 4 years.
Total audit fee 
£20.70m
Audit related fees (including interim review)
 £2.54m
Other services
 £0.03m
Non-audit fee as a % of total audit and audit 
related fee %
12%
Date first appointed
11 July 2018
Uninterrupted audit tenure
6 years
Reappointment
4 years
Next financial period which requires a tender
2029
Tenure of Group engagement partner
1 year
Average tenure of component signing partners
3 years 
Materiality (Item 6 below)
The scope of our work is influenced by our view of materiality and 
our assessed risk of material misstatement. 
Group materiality is determined with reference to a benchmark of 
Group Total Revenue (FY23: Profit before tax normalised by 
adding back the one-off operating cost arising from the BT Sport 
disposal). We have determined overall materiality for the Group 
financial statements as a whole at £135m (FY23: £95m) and for 
the Parent Company financial statements as a whole at £100m 
(FY23: £90m).
A key judgement in determining materiality was selecting the most 
relevant metric as the benchmark, considering which metrics have 
the greatest bearing on shareholder decisions. The relevant 
metrics considered for the current year included Revenue, 
Earnings before interest, taxes, depreciation and amortisation 
("EBITDA"), Profit before tax from continuing operations 
("PBTCO"), and Total assets. The selected benchmark for the 
current year is "Revenue," which represents a change from the 
prior period where the selected benchmark was PBTCO. The 
change to Revenue is deemed appropriate given shareholders’ 
focus on revenue and cash generation and the current stage of the 
Fibre To The Premise (“FTTP”) capital investment program. In the 
context of the high levels of capital investment for future growth, 
Revenue is considered a more representative and stable measure 
of performance. As such, we based our Group materiality on Total 
Revenue, of which it represents 0.65% (FY23: 4.95% of normalised 
PBTCO). 
Materiality for the Parent Company financial statements as a whole 
was set at £100m (FY23: £90m), determined with reference to a 
benchmark of Parent Company total assets, limited to be less than 
materiality for Group materiality as a whole. It represents 0.89% 
(FY23: 0.80%) of the stated benchmark. 
Materiality levels used in our audit
95
61.7
80
90
35
4.75
135
87.7
110
100
50
5.4
FY23 £m
FY24 £m
Group
GPM
HCM
PLC
LCM
AMPT
Group
Group Materiality
GPM
Group Performance Materiality
HCM 
Highest Component Materiality
PLC
Parent Company Materiality
LCM
Lowest Component Materiality
AMPT
Audit Misstatement Posting Threshold
Group scope (Item 7 below)
We have performed risk assessment and planning procedures to 
determine which of the Group’s components are likely to include 
risks of material misstatement to the Group financial statements, 
the type of procedures to be performed at these components and 
the extent of involvement required from our component auditors 
around the world.
The total number of entities in scope for FY24 is three which is 
consistent with FY23.
The components within the scope of our work accounted for the 
percentages illustrated on page 134.
In addition, we have performed Group level analysis on the 
remaining components to determine whether further risks of 
material misstatement exist in those components. 
We consider the scope of our audit, as communicated to the Audit 
and Risk Committee, to be an appropriate basis for our audit 
opinion.
BT Group plc Annual Report 2024
133
Financial statements

Coverage of Group financial statements 
Revenue 
Total assets
 
87%
13%
96%
4%
Profit before tax
83%
17%
Full scope audits
Remaining components
The impact of climate change on our audit
In planning our audit, we considered the potential impacts of 
climate change on the Group’s business and its financial 
statements. 
The Group has committed as set out in the Strategic Report to be a 
net-zero business by 2030 and has also outlined several shorter-
term climate change targets. As a part of our audit, we have 
performed a risk assessment, including enquiries of management, 
to understand how the impact of commitments made by the Group 
in respect of climate change, as well as the physical and transition 
risks of climate change, may affect the financial statements and 
our audit. 
The potential impacts of these matters relate to the forward-
looking estimates, which include projections for impairment 
assessment of goodwill, useful economic life of vehicle fleet and 
infrastructure assets impacting on future depreciation charges, 
and significant assumptions used in pension asset valuations. 
Taking into account our risk assessment procedures, the remaining 
useful economic lives of relevant assets and the nature of the 
assumptions used in the pension valuation, and the financial 
impact of climate risk and opportunities on the forecasted 
cashflows, we have assessed that there is not a significant risk to 
the balances in the financial statements as a result of climate 
change. Therefore, there is no material impact on the Group’s 
critical accounting estimates and our key audit matters. 
We have read the disclosures of climate related information in the 
annual report and considered their consistency with the financial 
statements and our audit knowledge. We have not been engaged 
to provide assurance over the accuracy of the climate risk 
disclosures in the Annual Report.
3. Going concern, viability and principal risks 
and uncertainties
The directors have prepared the financial statements on the going 
concern basis as they do not intend to liquidate the Group or the 
Parent Company or to cease their operations, and they have 
concluded that the Group’s and the Parent Company’s financial 
position means that this is realistic. They have also concluded that 
there are no material uncertainties that could have cast significant 
doubt over the Group's ability to continue as a going concern for at 
least a year from the date of approval of the financial statements 
(“the going concern period”). 
Going concern
We used our knowledge of the Group, its industry, and the general 
economic environment to identify the inherent risks to its business 
model and analysed how those risks might affect the Group’s and 
Parent Company’s financial resources or ability to continue 
operations over the going concern period. The risks that we 
considered most likely to adversely affect the Group’s and Parent 
Company’s available financial resources over this period were: 
– The impact of rising energy prices, supply shortages, and 
inflationary pressures; 
– The impact of significant supply chain disruptions driven by geo-
political factors; 
– The impact of plans to deliver new initiatives required to meet 
savings commitments not being realised; 
– The likelihood of existing litigation crystallising within the going 
concern period. 
We also considered less predictable but realistic second order 
impacts, such as a large scale cyber breach, the UK experiencing a 
significant recession, adverse changes to telecoms regulation, 
which could result in a rapid reduction of available financial 
resources. 
We considered whether these risks could plausibly affect the 
liquidity in the going concern period by comparing severe but 
plausible downside scenarios that could arise from these risks 
individually and collectively against the level of available financial 
resources indicated by the Group’s financial forecasts. 
BT Group plc Annual Report 2024
134
Financial statements
KPMG LLP’s Independent Auditor’s Report to the members of BT Group plc continued

Our procedures also included an assessment of whether the going 
concern disclosure in note 1 to the financial statements gives a full 
and accurate description of the directors’ assessment of going 
concern. Accordingly, based on those procedures, we found the 
directors’ use of the going concern basis of accounting without any 
material uncertainty for the Group and Parent Company to be 
acceptable. However, as we cannot predict all future events or 
conditions and as subsequent events may result in outcomes that 
are inconsistent with judgements that were reasonable at the time 
they were made, the above conclusions are not a guarantee that 
the Group or the Parent Company will continue in operation. 
Our conclusions
– We consider that the directors’ use of the going concern basis of 
accounting in the preparation of the Group and Parent 
Company’s financial statements is appropriate;
– We have not identified, and concur with the directors’ 
assessment that there is not, a material uncertainty related to 
events or conditions that, individually or collectively, may cast 
significant doubt on the Group’s or Parent Company's ability to 
continue as a going concern for the going concern period;
– We have nothing material to add or draw attention to in relation 
to the directors’ statement in note 1 to the financial statements 
on the use of the going concern basis of accounting with no 
material uncertainties that may cast significant doubt over the 
Group and Parent Company’s use of that basis for the going 
concern period, and we found the going concern disclosure in 
note 1 to be acceptable; and
– The related statement under the Listing Rules set out on page 
126 is materially consistent with the financial statements and our 
audit knowledge.
Disclosures of emerging and principal risks and longer-
term viability
Our responsibility
We are required to perform procedures to identify whether there is 
a material inconsistency between the directors’ disclosures in 
respect of emerging and principal risks and the viability statement, 
and the financial statements and our audit knowledge. 
Based on those procedures, we have nothing material to add or 
draw attention to in relation to: 
– the directors’ confirmation within the Viability statement on 
page 81 that they have carried out a robust assessment of the 
emerging and principal risks facing the Group, including those 
that would threaten its business model, future performance, 
solvency and liquidity; 
– the Principal Risks disclosures describing these risks and how 
emerging risks are identified and explaining how they are being 
managed and mitigated; and 
– the directors’ explanation in the Viability statement of how they 
have assessed the prospects of the Group, over what period they 
have done so and why they considered that period to be 
appropriate, and their statement as to whether they have a 
reasonable expectation that the Group will be able to continue in 
operation and meet its liabilities as they fall due over the period 
of their assessment, including any related disclosures drawing 
attention to any necessary qualifications or assumptions. 
We are also required to review the Viability statement set out on 
page 81 under the Listing Rules.
Our work is limited to assessing these matters in the context of only 
the knowledge acquired during our financial statements audit. As 
we cannot predict all future events or conditions and as 
subsequent events may result in outcomes that are inconsistent 
with judgements that were reasonable at the time they were made, 
the absence of anything to report on these statements is not a 
guarantee as to the Group’s and Parent Company’s longer-term 
viability.
Our reporting
We have nothing material to add or draw attention to in relation to 
these disclosures.
We have concluded that these disclosures are materially 
consistent with the financial statements and our audit knowledge.
4. Key audit matters (KAM)
What we mean
Key audit matters are those matters that, in our professional 
judgement, were of most significance in the audit of the financial 
statements and include the most significant assessed risks of 
material misstatement (whether or not due to fraud) identified by 
us, including those which had the greatest effect on: 
– the overall audit strategy; 
– the allocation of resources in the audit; and
– directing the efforts of the engagement team. 
We include below the key audit matters in decreasing order of 
audit significance together with our key audit procedures to 
address those matters and our results from those procedures. 
These matters were addressed, and our results are based on 
procedures undertaken, for the purpose of our audit of the 
financial statements as a whole. We do not provide a separate 
opinion on these matters. 
4.1 Accuracy of revenue due to the complex 
billing systems (Group)
Financial Statement Elements
FY24
FY23
Total revenue
£20.8bn
£20.7bn
Our assessment of risk vs FY23 
é
Increased
Our results
FY24: Acceptable
FY23: Acceptable
Description of the Key Audit Matter
Processing error
The Group’s non-long-term contract revenue consists of a large 
number of low value transactions. The Group operates a number of 
distinct billing and order-entry systems and the IT landscape 
underpinning the end-to-end revenue process is complex.
There are multiple products sold at multiple rates with varying 
price structures in place. These represent a combination of 
service-based products, such as fixed line telephony, as well as 
goods, such as the provision of mobile handsets.
The revenue recognition of non-long-term contract revenue is not 
subject to significant judgement. However, due to the large 
number of transactions, manual nature of order entry and 
complexity of the billing systems, this is considered to be an area of 
most significance in our audit. Within Business we have identified a 
significant risk of processing error in relation to some billing 
systems. In addition, the bespoke nature of the pricing structure 
within some of Business’ contracts means that there is a higher risk 
of processing error and fraud in relation to a proportion of 
Business’ revenue derived from certain billing systems.
Subjective estimate of refund liabilities in Business
The bespoke pricing structure results in a risk of billing inaccuracies 
within a proportion of Business’ revenue and so over the 
identification of financial liabilities for associated customer 
refunds. The Group have estimated refund liabilities based on the 
BT Group plc Annual Report 2024
135
Financial statements

results of a sample of billing items leading to estimation 
uncertainty over the refund liabilities.
The effect of these matters is that, as part of our risk assessment 
for audit planning purposes, we determined that the quantum of 
refund liabilities had a high degree of estimation uncertainty, with a 
potential range of reasonable outcomes greater than our 
materiality for the financial statements as a whole. In conducting 
our final audit work, we reassessed the degree of estimation 
uncertainty to be less than materiality. The financial statements 
(note 5) disclose the range estimated by the Group.
Our response to the risk
Our procedures to address the risk included:
Process understanding: Obtaining an understanding of the 
revenue processes by observing transactions from customer 
initiation to cash received for material revenue streams.
Test of detail: Comparing a sample of revenue transactions, 
including credit adjustments, to supporting evidence e.g., 
customer bills, contracts, price lists and cash received (all where 
applicable).
Test of detail: Agreeing a sample of  year end trade receivables to 
cash received after year end.
Test of detail: Within Business, we compared the results of our test 
of detail over revenue, including error rates by product, in the 
current and previous years’ audits, to the liabilities held for 
customer refunds and challenged the Group’s assessment of 
refund liabilities based on billing errors identified through our  
testing and the legal and regulatory risks in relation to billing errors 
for the products impacted. 
Assessing transparency: Considering the adequacy of the Group’s 
disclosures in respect of the sensitivity of the refund liability to 
error rates and legal risks.
We performed the detailed tests above rather than seeking to rely 
on the Group’s controls because our knowledge of the design of 
these controls, indicated that we would be unlikely to obtain the 
required evidence to support reliance on them.
Communications with the Audit and Risk Committee
Our discussions with and reporting to the Audit and Risk 
Committee included:
– Our definition of the key audit matter and our audit approach, 
including the extent of our planned control reliance.
– The results from our process understanding, including controls 
gaps identified.
– The results from our substantive testing. We performed an 
assessment of whether the overstatements of revenue identified 
through these procedures were material, taking into account 
findings from other areas of the audit and qualitative aspects of 
the financial statements as a whole.
Areas of particular auditor judgement
We exercised judgement over the adequacy of liabilities for 
customer refunds in light of overstatements of revenue identified 
through our testing over pricing within Business. Particular 
judgement was needed over the applicable error rate and periods 
impacted.
Our results
The results of our testing were satisfactory (FY23: satisfactory) and 
we considered the revenue relating to non-long-term contract 
revenue and the estimate of refund liabilities and related 
disclosures  to be acceptable (FY23: acceptable).
Further information in the Annual Report and Accounts: Refer 
to page 156 for the accounting policy on Revenue (note 5) 
for the financial disclosures.
4.2 Impairment of goodwill attributable to the 
Business CGU (Group)
Financial Statement Elements
FY24
FY23
Goodwill allocated to Business CGU
£3.56bn
£4.08bn
Impairment charge
£0.49bn 
£0.0bn
Our assessment of risk vs FY23 
…
Our results
FY24: Acceptable
FY23: Acceptable
Description of the Key Audit Matter
Forecast-based assessment
The recoverability of goodwill allocated to the Business cash 
generating unit (“CGU”) is assessed using value in use which is 
based on forecast future cash flows, within a discounted cashflow 
model. 
For the Business CGU, the execution risk associated with the 
transition from legacy to next generation telecommunication 
products and services in conjunction with ongoing cost reductions 
and uncertainty in relation to the economic outlook renders 
precise forecasting of the underlying cash flows challenging. There 
is also estimation uncertainty over the appropriate terminal growth 
rate and discount rate applied to the projected cashflows.
In the current year the Group recognised an impairment charge 
against goodwill allocated to the Business CGU of £488mn 
(FY23: nil), reflecting the execution risk of the CGU’s business 
plan and increased uncertainty over the projected cashflows.
The effect of these matters is that, as part of our risk assessment, 
we determined that the value in use used to support the 
recoverable amount of the goodwill allocated to the Business CGU 
has a high degree of estimation uncertainty, with a potential range 
of reasonable impairment outcomes greater than our materiality 
for the financial statements as a whole, and possibly many times 
that amount. The financial statements (note13) disclose the 
sensitivity estimated by the Group.
Our response to the risk
Our procedures to address the risk included:
Our valuation expertise: Using our own valuation specialists, 
assessing the methodology, principles and integrity of the value in 
use model. 
Benchmarking assumptions: Challenging the appropriateness of 
the Business CGU discount rate and long-term growth rate by 
determining an independent discount rate and benchmarking the 
long term growth rate against externally derived data and analyst 
reports.
Our sector experience: Using our sector experience inspecting the 
Group’s medium term strategic plans used to derive the forecast 
cash flows and comparing the assumptions applied by the directors 
in the forecast cash flows against those plans, and the forecasts 
approved by the Board.
Assessing consistency: Assessing the consistency of the forecasts 
used by the Group across different areas such as goodwill 
impairment testing and the viability assessment.
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Historical comparison: Assessing the historical accuracy of the 
forecasts used in the Business CGU’s impairment model by 
considering actual performance against prior year budgets and 
challenging whether the forecast cashflows were risk adjusted 
based on the downside risks and opportunities identified by the 
Group.
Sensitivity analysis: Considering the sensitivity of the recoverable 
amount to reasonably possible changes in the key inputs and 
assumptions used in determining the value in use of the Business 
CGU and the resulting impairment charge including the impact of 
changes in EBITDA compound annual growth rate in the forecast 
period, long term growth rate and discount rate.
Comparing valuations: Performing a stand back assessment by 
comparing the combined value in use of all of the CGUs of the 
Group to the Group’s market capitalisation to assess the 
reasonableness of those cash flows and assessing and challenging 
the difference and whether the assumptions applied in the 
impairment test were acceptable.
Assessing transparency: Assessing whether the Group’s 
disclosures about the sensitivity of the outcome of the impairment 
assessment to changes in key assumptions reflected the risks 
inherent in the recoverable amount of goodwill. 
We performed the detailed tests above rather than seeking to rely 
on any of the Group’s controls because the nature of the balance is 
such that we would expect to obtain audit evidence primarily 
through the detailed procedures described.
Communications with the  Audit and Risk Committee
Our discussions with and reporting to the Audit and Risk 
Committee included:
– Our definition of the key audit matter relating to the impairment 
of goodwill allocated to the Business CGU.
– Our audit response to the key audit matter which included our 
assessment of the forecasted cashflows and the use of 
specialists to challenge the value in use model and key 
assumptions and our assessment over accuracy and 
completeness of the disclosures.
Areas of particular auditor judgement
We identified the following as the areas of particular auditor 
judgement:
– Subjective and complex auditor judgement was required in 
evaluating the key assumptions included in the estimation of the 
value in use. This includes the quantum of risk adjustments 
needed to be applied to forecasts to account for the underlying 
execution risk associated with the transition from legacy to next 
generation products and services, in conjunction with an 
ongoing project to reduce the CGU’s cost base to deliver those 
products and services. This is in addition to the evaluation of the 
terminal growth rate and discount rate.
– We performed an assessment of whether an understatement of 
the impairment charge identified through these procedures was 
material.
Our results
We found the goodwill allocated to the Business CGU balance, and 
the related impairment charge, to be acceptable (FY23: 
acceptable.
Further information in the Annual Report and Accounts: See 
the Audit and Risk Committee Report on page 101 for details 
on how the Audit and Risk Committee considered impairment 
of goodwill as an area of significant attention, page 168 for 
the accounting policy on Impairment on goodwill (note 13) 
for the financial disclosures.
4.3 Valuation of defined benefit obligation of 
the BT Pension Scheme (BTPS) (Group)
Financial Statement Elements
FY24
FY23
BTPS Obligation
£40.0bn
£41.6bn
Our assessment of risk vs FY23 
çè
Our results
FY24: Acceptable
FY23: Acceptable
Description of the Key Audit Matter
Subjective valuation
The valuation of the BT pension scheme (“BTPS”) defined benefit 
obligation is complex and requires a significant degree of 
estimation in determining the assumptions. It is dependent on key 
actuarial assumptions, including the discount rate, retail price 
index (“RPI”) and mortality assumptions. A change in the 
methodology applied or small changes in the key actuarial 
assumptions may have a significant impact on the measurement of 
the defined benefit pension obligation.
The effect of these matters is that, as part of our risk assessment, 
we determined the valuation of the BTPS defined benefit 
obligation had a high degree of estimation uncertainty, with a 
potential range of reasonable outcomes greater than our 
materiality for the financial statements as a whole, and possibly 
many times that amount. The financial statements (note 19) 
disclose the key sensitivities of the defined benefit pension 
obligation to changes in key assumptions.
Our response to the risk
Our procedures to address the risk included:
Evaluation of the Group’s experts: Evaluating the scope, 
competency and objectivity of the Group’s external experts who 
assisted in determining the actuarial assumptions used to 
determine the defined benefit obligation.
Our actuarial expertise: With the support of our own actuarial 
specialists, we performed the following:
– Evaluating the judgements made and the appropriateness of 
methodologies used by the Group and the Group’s experts in 
determining the key actuarial assumptions;
– Comparing the assumptions used by the Group to our 
independently compiled expected ranges based on market 
observable data points and our market experience.
Assessing transparency: Considering the adequacy of the Group’s 
disclosures in respect of the sensitivity of the obligation to these 
assumptions.
We performed the tests above rather than seeking to rely on any of 
the Group’s controls because the nature of the balance is such that 
we would expect to obtain audit evidence primarily through the 
detailed procedures described.
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Communications with the Audit and Risk Committee
Our discussions with and reporting to the Audit and Risk 
Committee included:
– Our definition of the key audit matter relating to the valuation of 
the defined benefit obligation of the BTPS.
– Our audit response to the key audit matter which included the 
use of specialists to challenge key aspects of the Group’s 
actuarial valuation.
Areas of particular auditor judgement
We identified the following as the areas of particular auditor 
judgement:
– Subjective and complex auditor judgement was required in 
evaluating the key actuarial assumptions used by the Group 
(including the discount rate, retail price index and mortality 
assumptions). 
Our results
We found the valuation of the defined benefit obligation of the BT 
Pension Scheme and related disclosures to be acceptable (FY23: 
acceptable).
Further information in the Annual Report and Accounts: See 
the Audit and Risk Committee Report on page 101 for details 
on how the Audit and Risk Committee considered the 
valuation of defined benefit obligation of the BTPS as an area 
of significant attention, page 185 for the accounting policy on 
the Retirement Benefit Plan (note 19) for the financial 
disclosures.
4.4 Valuation of unquoted assets in the BT 
Pension Scheme (BTPS) (Group)
Financial Statement Elements
FY24
FY23
Longevity Insurance Contract for the 
BTPS: included within the unquoted 
BTPS plan assets
£(0.9)bn
£(0.8)bn
Our assessment of risk vs FY23 
ê
Our results
FY24: Acceptable
FY23: Acceptable
Description of the Key Audit Matter
Subjective valuation
The BTPS have unquoted plan assets in private equity, UK and 
overseas property, mature infrastructure, longevity insurance 
contracts, secure income and non-core credit assets which are 
classified as fair value level three assets.
Significant judgement is required to determine the value of a 
portion of these unquoted investments, which are valued based on 
inputs that are not directly observable. The Group engages 
valuation experts to value these assets. 
In FY24, the most significant valuation judgement of the above is in 
respect of a longevity insurance contract. The key unobservable 
inputs used to determine the fair value of that longevity insurance 
contract include the discount rate and projected future mortality.
The effect of these matters is that, as part of our risk assessment, 
we determined that the valuation of a longevity insurance contract 
asset held by the BTPS has a high degree of estimation 
uncertainty, with a potential range of reasonable outcomes greater 
than our materiality for the financial statements as a whole, and 
possibly many times that amount. 
The financial statements (note 19) disclose the key sensitivities of 
the valuation of plan assets to changes in key assumptions.
Our response to the risk
Our procedures to address the risk included:
Assessing valuers’ credentials: Evaluating the scope, 
competencies and objectivity of the Group’s external experts who 
assisted in determining the key unobservable inputs and the 
valuation of a longevity insurance contract. 
Comparing valuations: Challenging, with the support of our own 
actuarial specialists, the fair value of a longevity insurance contract 
by comparing with an independently developed range of fair 
values using assumptions, such as the discount rate and projected 
future mortality, based on external data. External data included 
market views of the impact from COVID on future mortality, 
market discount rates and the demographic analysis available from 
the 30 June 2023 triennial funding valuation. 
Assessing transparency: Considering the adequacy of the Group’s 
disclosures in respect of the sensitivity of a longevity insurance 
contract asset valuation to these assumptions.
We performed the detailed tests above rather than seeking to rely 
on any of the Group's controls because our knowledge of the 
design of these controls indicated that we would not be able to 
obtain the required evidence to support reliance on controls.
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Communications with the  Audit and Risk Committee
Our discussions with and reporting to the Audit and Risk 
Committee included:
– Our definition of the key audit matter relating to the valuation of 
a longevity insurance contract.
– Our audit response to the key audit matter which included the 
use of specialists to challenge key aspects of the Group’s 
valuation of a longevity insurance contract.
Areas of particular auditor judgement
We identified the following as the areas of particular auditor 
judgement:
– Subjective and complex auditor judgement was required in 
evaluating the key assumptions used by the Group (including 
the discount rate and projected mortality) 
Our results
We found the valuation of a longevity insurance contract and 
related disclosures to be acceptable (FY23: acceptable).
Further information in the Annual Report and Accounts: See 
the Audit and Risk Committee Report on page 101 for details 
on how the Audit and Risk Committee considered the 
valuation of unquoted investments in the BTPS (including the 
longevity insurance contract) as an area of significant 
attention, page 185 for the accounting policy on Retirement 
benefit plans (note 19) for the financial disclosures.
4.5 Recoverability of Parent company investment 
in subsidiaries 
Financial Statement Elements
FY24
FY23
Investment in subsidiary
£11.3bn
£11.3bn
Our assessment of risk vs FY23 
çè
Our results
FY24: Acceptable
FY23: Acceptable
Description of the Key Audit Matter
Low risk, high value
The carrying amount of the Parent company investment in 
subsidiary represents 100% (FY23: 100%), of the Parent 
company’s total assets.
The recoverability is not at a high risk of significant misstatement 
or subject to significant judgement. However, due to their 
materiality in the context of the Parent company financial 
statements, this is considered to be the area that had the greatest 
effect on our overall Parent company audit.
Our response to the risk
Our procedures to address the risk included:
Test of detail: Comparing the carrying amount of the Parent 
company’s investment with the calculated value in use of the 
investment.
Comparing valuations: Comparing the carrying amount of the 
Parent company’s investment with the market capitalisation of 
the Group.
We performed the tests above rather than seeking to rely on any of 
the Parent company’s controls because the nature of the balance 
is such that we would expect to obtain audit evidence primarily 
through the detailed procedures described.
Communications with the Audit and Risk Committee
Our discussions with and reporting to the Audit and Risk 
Committee included:
– Our definition of the key audit matter and our findings along with 
the procedures performed to address the corresponding risk.
– The result of our substantive testing.
Areas of particular auditor judgement
We did not identify any areas of particular auditor judgement.
Our results
We found the Parent company’s conclusion that there is no 
impairment of its investment in subsidiary to be acceptable (FY23: 
acceptable).
Further information in the Annual Report and Accounts: Refer 
to page 224 for the accounting policy on Investments in 
Subsidiaries Undertakings.
We continue to perform procedures over the ongoing 
measurement of balances held in relation to BT’s investment in the 
Sports JV. However, in FY23 all significant risks were associated 
with the disposal accounting and subsequent re-investment in the 
Sports JV related to the initial recognition of balances. We have 
concluded there are no significant risks over the subsequent 
measurement of these balances in FY24 and therefore we have not 
identified a related KAM in our audit report in FY24.
5. Our ability to detect irregularities, and our 
response 
Fraud – Identifying and responding to risks of material 
misstatement due to fraud
Fraud risk assessment 
To identify risks of material misstatement due to fraud (“fraud 
risks”) we assessed events or conditions that could indicate an 
incentive or pressure to commit fraud or provide an opportunity to 
commit fraud. Our risk assessment procedures included:
– enquiring of directors, the Audit and Risk Committee, internal 
audit and inspection of policy documentation as to the Group’s 
high-level policies and procedures to prevent and detect fraud, 
including the internal audit function, and the Group’s channel for 
“whistleblowing”, as well as whether they have knowledge of any 
actual, suspected or alleged fraud;
– reading Board, Remuneration Committee and Executive 
Committee minutes;
– considering remuneration incentive schemes and performance 
targets for management and directors including the targets for 
management remuneration;
– using analytical procedures to identify any unusual or 
unexpected relationships.
Risk communications
We communicated identified fraud risks throughout the audit 
team and remained alert to any indications of fraud throughout the 
audit. This included communication from the Group to full scope 
component audit teams of relevant fraud risks identified at the 
Group level and request to full scope component audit teams to 
report to the Group audit team any instances of fraud that could 
give rise to a material misstatement at the Group level.
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Fraud risks
As required by auditing standards and taking into account possible 
pressures to meet profit targets, recent revisions to guidance and 
our overall knowledge of the control environment, we perform 
procedures to address the risk of management override of 
controls, and the risk of fraudulent revenue recognition in relation 
to certain revenue streams in Business, in particular:
– the risk that Group and component management may be in a 
position to make inappropriate accounting entries; and
– the risk that certain revenue streams in Business are overstated 
given the bespoke nature of the pricing structure within these 
contracts and associated risk of processing errors.
Procedures to address fraud risks
In determining the audit procedures, we took into account the 
results of our evaluation and test of operating effectiveness of 
some of the Group-wide fraud risk management controls.
We also performed procedures including:
– Identifying journal entries to test for all full scope components 
based on high risk criteria and comparing the identified entries 
to supporting documentation. These included those posted by 
senior finance management, those posted and approved by the 
same user and those posted to unusual or seldom used accounts;
– Assessing whether the judgements made in making accounting 
estimates are indicative of a potential bias;
– Increased testing over certain revenue streams in Business.
– Evaluating the business purpose for significant unusual 
transactions.
Laws and regulations – Identifying and responding to 
risks of material misstatement relating to compliance 
with laws and regulations
Laws and regulations risk assessment 
We identified areas of laws and regulations that could reasonably 
be expected to have a material effect on the financial statements 
from our general commercial and sector experience, through 
discussion with the directors and other management (as required 
by auditing standards), and from inspection of the Group’s 
regulatory and legal correspondence and discussed with the 
directors and other management the policies and procedures 
regarding compliance with laws and regulations.
As the Group is regulated, our assessment of risks involved gaining 
an understanding of the control environment including the Group’s 
procedures for complying with regulatory requirements.
Risk communications
We communicated identified laws and regulations throughout our 
team and remained alert to any indications of non-compliance 
throughout the audit. This included communication from the 
Group to full-scope component audit teams of relevant laws and 
regulations identified at the Group level, and a request for full 
scope component auditors to report to the Group audit team any 
instances of non-compliance with laws and regulations that could 
give rise to a material misstatement at the Group level.
The potential effect of these laws and regulations on the financial 
statements varies considerably.
Direct laws context and link to audit
Firstly, the Group is subject to laws and regulations that directly 
affect the financial statements including financial reporting 
legislation (including related companies legislation), distributable 
profits legislation, taxation legislation, and pension legislation and 
we assessed the extent of compliance with these laws and 
regulations as part of our procedures on the related financial 
statement items.
Most significant indirect law/ regulation areas
Secondly, the Group is subject to many other laws and regulations 
where the consequences of non-compliance could have a material 
effect on amounts or disclosures in the financial statements, for 
instance through the imposition of fines or litigation or the loss of 
the Group’s licence to operate. We identified the following areas as 
those most likely to have such an effect: anti-bribery, regulations 
affecting telecommunication providers, and certain aspects of 
company legislation recognising the financial and regulated nature 
of the Group’s activities (including compliance with Ofcom 
regulation) and its legal form.
Auditing standards limit the required audit procedures to identify 
non-compliance with these laws and regulations to enquiry of the 
directors and other management and inspection of regulatory and 
legal correspondence, if any. Therefore if a breach of operational 
regulations is not disclosed to us or evident from relevant 
correspondence, an audit will not detect that breach.
Known actual or suspected matters
For the legal matters discussed in note 18 we assessed disclosures 
against our understanding from legal correspondence.
Significant actual or suspected breaches discussed 
with Audit and Risk Committee
We discussed with the Audit and Risk Committee other matters 
related to actual or suspected breaches of laws or regulations, for 
which disclosure is not necessary, and considered any implications 
for our audit.
Context 
Context of the ability of the audit to detect fraud or 
breaches of law or regulation
Owing to the inherent limitations of an audit, there is an 
unavoidable risk that we may not have detected some material 
misstatements in the financial statements, even though we have 
properly planned and performed our audit in accordance with 
auditing standards. For example, the further removed non-
compliance with laws and regulations is from the events and 
transactions reflected in the financial statements, the less likely the 
inherently limited procedures required by auditing standards 
would identify it. In addition, as with any audit, there remained a 
higher risk of non-detection of fraud, as fraud may involve 
collusion, forgery, intentional omissions, misrepresentations, or the 
override of internal controls. Our audit procedures are designed to 
detect material misstatement. We are not responsible for 
preventing non-compliance or fraud and cannot be expected to 
detect non-compliance with all laws and regulations.
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6. Our determination of materiality
The scope of our audit was influenced by our application of 
materiality. We set quantitative thresholds and overlay qualitative 
considerations to help us determine the scope of our audit and the 
nature, timing and extent of our procedures, and in evaluating the 
effect of misstatements, both individually and in the aggregate, on 
the financial statements as a whole. 
£135m (FY23: £95m)
Materiality for the Group financial statements as a whole
What we mean
A quantitative reference for the purpose of planning and 
performing our audit.
Basis for determining materiality and judgements applied
Materiality for the Group financial statements as a whole was set at 
£135m (FY23: £95m). This was determined with reference to a 
benchmark of Total Revenue (of which it represents 0.65% (FY23: 
4.95% of normalised PBTCO)). 
A key judgement in determining materiality was selecting the most 
relevant metric as the benchmark, considering which metrics have 
the greatest bearing on shareholder decisions. The relevant 
metrics considered for the current year included Revenue, 
Earnings before interest, taxes, depreciation and amortisation 
(“EBITDA”), Profit before tax from continuing operations 
(“PBTCO”), and Total assets. The selected benchmark for the 
current year is "Revenue," which represents a change from the 
prior period where the selected benchmark was PBTCO. The 
change to Revenue is deemed appropriate given shareholders' 
focus on revenue and cash generation and the current stage of the 
Fibre To The Premise (“FTTP”) capital investment program. In the 
context of the high levels of capital investment for future growth, 
Revenue is considered a more representative and stable measure 
of performance. 
Our Group materiality of £135m was determined by applying a 
percentage to the Total Revenue. When using a benchmark of 
Total Revenue to determine overall materiality, KPMG’s approach 
for listed entities considers a guideline range 0.5% – 1% of the 
measure. In setting overall Group materiality, we applied a 
percentage of 0.65% (FY23: 4.95% of normalised PBTCO) to the 
benchmark. 
Materiality for the Parent company financial statements as a whole 
at £100m (FY23: £90m), determined with reference to a 
benchmark of Parent Company total assets, limited to be less than 
materiality for Group materiality as a whole. It represents 0.89% 
(FY23: 0.80%) of the stated benchmark.
£87.7m (FY23: £61.7m)
Performance materiality
What we mean
Our procedures on individual account balances and disclosures 
were performed to a lower threshold, performance materiality, so 
as to reduce to an acceptable level the risk that individually 
immaterial misstatements in individual account balances add up to 
a material amount across the financial statements as a whole.
Basis for determining performance materiality and 
judgements applied
We have considered performance materiality at a level of 65% 
(FY23: 65%) of materiality for BT Group plc’s Group financial 
statements as a whole to be appropriate. 
The Parent company performance materiality was set at £65m 
(FY23: £58.5m), which equates to 65% (FY23: 65%) of materiality 
for the Parent company financial statements as a whole. 
We applied this percentage in our determination of performance 
materiality based on the level of identified misstatements and 
control deficiencies during the year and the prior year.
£5.4m (FY23: £4.75m)
Audit misstatement posting threshold
What we mean
This is the amount below which identified misstatements are 
considered to be clearly trivial from a quantitative point of view. 
We may become aware of misstatements below this threshold 
which could alter the nature, timing and scope of our audit 
procedures, for example if we identify smaller misstatements 
which are indicators of fraud. 
This is also the amount above which all misstatements identified 
are communicated to BT Group plc’s Audit and Risk Committee.
Basis for determining the audit misstatement posting 
threshold and judgements applied
We set our audit misstatement posting threshold at 4% (FY23: 
5%) of our materiality for the Group financial statements. We also 
report to the Audit and Risk Committee any other identified 
misstatements that warrant reporting on qualitative grounds.
The overall materiality for the Group financial statements of 
£135m (FY23: £95m) compares as follows to the main financial 
statement caption amounts: 
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Total Group Revenue
FY24
FY23
Financial statement Caption
£20,797m
£20,681m
Group Materiality as % of caption
0.65%
0.46%
Group Profit Before Tax
FY24
FY23
Financial statement Caption
£1,186m
£1,729m
Group Materiality as % of caption
11.38%
5.49%
Total Group Assets
FY24
FY23
Financial statement Caption
£51,739m
£52,752m
Group Materiality as % of caption
0.26%
0.18%
7. The scope of our audit
Group scope
What we mean
How the Group audit team determined the procedures to be performed across the Group.
The Group has 215 (FY23: 226) reporting components. In order to determine the work performed at the reporting component level, we 
identified those components which we considered to be of individual financial significance, those which were significant due to risk and 
those remaining components on which we required procedures to be performed to provide us with the evidence we required in order to 
conclude on the Group financial statements as a whole.
We determined individually financially significant components as those contributing at least 10% (FY23: 10%) of revenue or total assets. 
We selected revenue and total assets because these are the most representative of the relative size of the components. We identified 2 
(FY23: 2) components as individually financially significant components and performed full scope audits on these components.
We selected 1 (FY23: 1) components for which we performed work other than audits for Group reporting purposes, that was not 
individually significant but were included in the scope of our Group reporting work in order to provide further coverage over the Group's 
results.
The components within the scope of our work accounted for the following percentages of the Group’s results, with the prior year 
comparatives indicated in brackets: 
Scope
Number of 
components
Range of materiality 
applied
Group Revenue
Group PBT
Group Total assets
Full scope audit
2 (2)
£90m – £110m
(£60m – £80m)
87% (86%)
83% (78%)
96% (90%)
Specified audit procedure
1(1)
£50m (£35m)
0% (0%)
10%* (11%)
0% (0%)
*as a % of Total operating cost
For the residual components, we performed analysis at an aggregated Group level to re-examine our assessment that there were no 
significant risks of material misstatement within those.
The work on 1 of the 3 in scope components (FY23: 1 of the 3 in scope components) was performed by component auditors and the rest, 
including the audit of the Parent company, was performed by the Group audit team.
The Group audit team has also performed audit procedures on the following areas on behalf of the components: 
– Testing of IT Systems
– Litigation and claims 
These items were audited by the Group team for efficiency purposes, where the Group team has direct access to the underlying 
information. The Group team communicated the results of these procedures to the component teams.
The Group team instructed component auditors as to the significant areas to be covered, including the relevant risks detailed above and 
the information to be reported back. The Group team approved the component materialities, as detailed in the table above, having regard 
to the mix of size and risk profile of the Group across the components.
The scope of the audit work performed was predominately substantive as we placed limited reliance upon the Group’s internal control 
over financial reporting. 
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Group audit team oversight
What we mean
The extent of the Group audit team’s involvement in component 
audits.
In working with component auditors, we:
– Held planning calls with component audit teams to discuss the 
significant areas of the audit relevant to the components;
– Issued Group audit instructions to component auditors on the 
scope of their work, 
– Held risk assessment update discussions with component audit 
teams before the commencement of the final phases of the 
audit led by the Group engagement partner and engagement 
quality control partner;
– Inspected component audit teams’ key work papers (in person 
and/or using remote technology capabilities) to evaluate the 
quality of execution of the audits of the components.
8. Other information in the annual report
The directors are responsible for the other information presented 
in the Annual Report together with the financial statements. Our 
opinion on the financial statements does not cover the other 
information and, accordingly, we do not express an audit opinion 
or, except as explicitly stated below, any form of assurance 
conclusion thereon. 
All other information 
Our responsibility 
Our responsibility is to read the other information and, in doing so, 
consider whether, based on our financial statements audit work, 
the information therein is materially misstated or inconsistent with 
the financial statements or our audit knowledge. 
Our reporting
Based solely on that work we have not identified material 
misstatements or inconsistencies in the other information. 
Strategic report and directors’ report 
Our responsibility and reporting
Based solely on our work on the other information described above 
we report to you as follows: 
– we have not identified material misstatements in the strategic 
report and the directors’ report;
– in our opinion the information given in those reports for the 
financial year is consistent with the financial statements; and 
– in our opinion those reports have been prepared in accordance 
with the Companies Act 2006.
Directors’ remuneration report
Our responsibility 
We are required to form an opinion as to whether the part of the 
Directors’ Remuneration Report to be audited has been properly 
prepared in accordance with the Companies Act 2006. 
Our reporting
In our opinion the part of the Directors’ Remuneration Report to be 
audited has been properly prepared in accordance with the 
Companies Act 2006. 
Corporate governance disclosures
Our responsibility 
We are required to perform procedures to identify whether there is 
a material inconsistency between the financial statements and our 
audit knowledge, and:
– the directors’ statement that they consider that the annual 
report and financial statements taken as a whole is fair, balanced 
and understandable, and provides the information necessary for 
shareholders to assess the Group’s position and performance, 
business model and strategy; 
– the section of the annual report describing the work of the Audit 
and Risk Committee, including the significant matters that the 
Audit and Risk Committee considered in relation to the financial 
statements, and how these issues were addressed; and
– the section of the annual report that describes the review of the 
effectiveness of the Group’s risk management and internal 
control systems.
We are also required to review the part of the Corporate 
Governance Statement relating to the Group’s compliance with 
the provisions of the UK Corporate Governance Code specified by 
the Listing Rules for our review. 
Our reporting
Based on those procedures, we have concluded that each of these 
disclosures is materially consistent with the financial statements 
and our audit knowledge. 
We have nothing to report in this respect.
Other matters on which we are required to report by 
exception 
Our responsibility 
Under the Companies Act 2006, we are required to report to you if, 
in our opinion: 
– adequate accounting records have not been kept by the Parent 
company, or returns adequate for our audit have not been 
received from branches not visited by us; or 
– the Parent company financial statements and the part of the 
Directors’ Remuneration Report to be audited are not in 
agreement with the accounting records and returns; or 
– certain disclosures of directors’ remuneration specified by law 
are not made; or
– we have not received all the information and explanations we 
require for our audit. 
Our reporting
We have nothing to report in these respects.
9. Respective responsibilities
Directors’ responsibilities
As explained more fully in their statement set out on page 125, the 
directors are responsible for: the preparation of the financial 
statements including being satisfied that they give a true and fair 
view; such internal control as they determine is necessary to enable 
the preparation of financial statements that are free from material 
misstatement, whether due to fraud or error; assessing the Group 
and Parent company’s ability to continue as a going concern, 
disclosing, as applicable, matters related to going concern; and 
using the going concern basis of accounting unless they either 
intend to liquidate the Group or the Parent company or to cease 
operations, or have no realistic alternative but to do so. 
BT Group plc Annual Report 2024
143
Financial statements

Auditor’s responsibilities
Our objectives are to obtain reasonable assurance about whether 
the financial statements as a whole are free from material 
misstatement, whether due to fraud or error, and to issue our 
opinion in an auditor’s report. Reasonable assurance is a high level 
of assurance, but does not guarantee that an audit conducted in 
accordance with ISAs (UK) will always detect a material 
misstatement when it exists. Misstatements can arise from fraud or 
error and are considered material if, individually or in aggregate, 
they could reasonably be expected to influence the economic 
decisions of users taken on the basis of the financial statements. 
A fuller description of our responsibilities is provided on the FRC’s 
website at www.frc.org.uk/auditorsresponsibilities. 
The Company is required to include these financial statements in 
an annual financial report prepared under Disclosure Guidance and 
Transparency Rule 4.1.17R and 4.1.18R. This auditor’s report 
provides no assurance over whether the annual financial report has 
been prepared in accordance with those requirements.
10. The purpose of our audit work and to whom we 
owe our responsibilities
This report is made solely to the Company’s members, as a body, in 
accordance with Chapter 3 of Part 16 of the Companies Act 2006. 
Our audit work has been undertaken so that we might state to the 
Company’s members those matters we are required to state to 
them in an auditor’s report and for no other purpose. To the fullest 
extent permitted by law, we do not accept or assume responsibility 
to anyone other than the Company and the Company’s members, 
as a body, for our audit work, for this report, or for the opinions we 
have formed. 
Jonathan Mills 
for and on behalf of KPMG LLP, Statutory Auditor
Chartered Accountants 
15 Canada Square 
London 
E14 5GL
15 May 2024
BT Group plc Annual Report 2024
144
Financial statements
KPMG LLP’s Independent Auditor’s Report to the members of BT Group plc continued

Before
specific items
(‘Adjusted’)
Specific
itemsa
Total
(Reported)
Notes
£m
£m
£m
Revenue
4, 5
 
20,835 
 
(38) 
 
20,797 
Operating costs
6
 
(17,634) 
 
(949) 
 
(18,583) 
Of which net impairment losses on trade receivables and contract assets
 
(165) 
 
— 
 
(165) 
Of which goodwill impairment
13
 
— 
 
(488) 
 
(488) 
Operating profit (loss)
4
 
3,201 
 
(987) 
 
2,214 
Finance expense
27
 
(1,067) 
 
(121) 
 
(1,188) 
Finance income
 
181 
 
— 
 
181 
Net finance expense
 
(886) 
 
(121) 
 
(1,007) 
Share of post tax profit (loss) of associates and joint ventures
24
 
(21) 
 
— 
 
(21) 
Profit (loss) before taxation
 
2,294 
 
(1,108) 
 
1,186 
Taxation
10
 
(476) 
 
145 
 
(331) 
Profit (loss) for the year
 
1,818 
 
(963) 
 
855 
Earnings per share
11
Basic
 
18.5p  
(9.8) p  
8.7p 
Diluted
 
18.2p  
(9.6) p  
8.6p 
Group income statement
Year ended 31 March 2023
Before
specific items
(‘Adjusted’)
Specific
itemsa
Total
(Reported)
Notes
£m
£m
£m
Revenue
4, 5
 
20,669 
 
12 
 
20,681 
Operating costs
6
 
(17,494) 
 
(568) 
 
(18,062) 
Of which net impairment losses on trade receivables and contract assets
 
(138) 
 
— 
 
(138) 
Of which goodwill impairment
13
 
— 
 
— 
 
— 
Operating profit (loss)
4
 
3,175 
 
(556) 
 
2,619 
Finance expense
27
 
(889) 
 
(5) 
 
(894) 
Finance income
 
63 
 
— 
 
63 
Net finance expense
 
(826) 
 
(5) 
 
(831) 
Share of post tax profit (loss) of associates and joint ventures
24
 
(59) 
 
— 
 
(59) 
Profit (loss) before taxation
 
2,290 
 
(561) 
 
1,729 
Taxation
10
 
(132) 
 
308 
 
176 
Profit (loss) for the year
 
2,158 
 
(253) 
 
1,905 
Earnings per share
11
Basic
 
22.0p  
(2.6) p  
19.4p 
Diluted
 
21.4p  
(2.5) p  
18.9p 
a Specific items are defined and analysed in note 9.
BT Group plc Annual Report 2024
145
Financial statements
Group income statement
Year ended 31 March 2024

2024
2023
Notes
£m
£m
Profit for the year
 
855  
1,905 
Other comprehensive income (loss)
Items that will not be reclassified to the income statement
Remeasurements of the net pension obligation
19
 
(2,444)  
(2,876) 
Tax on pension remeasurements
10
 
600  
732 
Items that have been or may be reclassified to the income statement
Exchange differences on translation of foreign operations
29
 
(66)  
87 
Fair value movements on assets at fair value through other comprehensive income
29
 
—  
(3) 
Movements in relation to cash flow hedges:
– net fair value gains (losses)
29
 
(642)  
1,055 
– recognised in income and expense
29
 
356  
(713) 
Tax on components of other comprehensive income that have been or may be reclassified
10, 29
 
78  
(90) 
Share of post tax other comprehensive loss in associates and joint ventures
24
 
(11)  
(1) 
Other comprehensive (loss) income for the year, net of tax
 
(2,129)  
(1,809) 
Total comprehensive (loss) income for the year
 
(1,274)  
96 
BT Group plc Annual Report 2024
146
Financial statements
Group statement of comprehensive income
Year ended 31 March

2024
2023
Notes
£m
£m
Non-current assets
Intangible assets
13
 
12,920  
13,687 
Property, plant and equipment
14
 
22,562  
21,667 
Right-of-use assets
15
 
3,642  
3,981 
Derivative financial instruments
28
 
1,020  
1,397 
Investments
23
 
29  
29 
Joint ventures and associates
24
 
307  
359 
Trade and other receivables
16
 
641  
503 
Preference shares in joint ventures
24
 
451  
542 
Contract assets
5
 
330  
369 
Retirement benefit surplus
19
 
70  
52 
Deferred tax assets
10
 
1,048  
709 
 
43,020  
43,295 
Current assets
Inventories
 
409  
349 
Trade and other receivables
16
 
3,565  
3,060 
Preference shares in joint ventures
24
 
82  
13 
Contract assets
5
 
1,410  
1,565 
Assets classified as held for sale
22
 
—  
21 
Current tax receivable
 
423  
427 
Derivative financial instruments
28
 
50  
82 
Investments
23
 
2,366  
3,548 
Cash and cash equivalents
25
 
414  
392 
 
8,719  
9,457 
Current liabilities
Loans and other borrowings
26
 
1,395  
1,772 
Derivative financial instruments
28
 
94  
86 
Trade and other payables
17
 
6,327  
6,564 
Contract liabilities
5
 
906  
859 
Lease liabilities
15
 
766  
800 
Liabilities classified as held for sale
22
 
—  
4 
Current tax liabilities
 
92  
78 
Provisions
18
 
238  
229 
 
9,818  
10,392 
Total assets less current liabilities
 
41,921  
42,360 
Non-current liabilities
Loans and other borrowings
26
 
17,131  
16,749 
Derivative financial instruments
28
 
445  
297 
Contract liabilities
5
 
175  
193 
Lease liabilities
15
 
4,189  
4,559 
Retirement benefit obligations
19
 
4,882  
3,139 
Other payables
17
 
637  
920 
Deferred tax liabilities
10
 
1,533  
1,620 
Provisions
18
 
411  
369 
 
29,403  
27,846 
Equity
Share capital
 
499  
499 
Share premium
 
1,051  
1,051 
Own shares
20
 
(311)  
(422) 
Merger reserve
 
998  
998 
Other reserves
29
 
716  
957 
Retained earnings
 
9,565  
11,431 
Total equity
 
12,518  
14,514 
 
41,921  
42,360 
The consolidated financial statements on pages 145 to 221 were approved by the Board of Directors on 15 May 2024 and were signed on 
its behalf by:
Adam Crozier 
Allison Kirkby 
Simon Lowth
Chairman 
Chief Executive 
Chief Financial Officer
BT Group plc Annual Report 2024
147
Financial statements
Group balance sheet
At 31 March

Share
capitala
Share
premiumb
 Own
sharesc
Merger
reserved
Other
reservese
Retained
earnings
(loss)
Total
equity
(deficit)
Notes
£m
£m
£m
£m
£m
£m
£m
At 1 April 2022
 
499  
1,051  
(274)  
998  
619  
12,391  
15,284 
Profit for the year
 
—  
—  
—  
—  
—  
1,905  
1,905 
Other comprehensive income 
(loss) – before tax
 
—  
—  
—  
—  
1,141  
(2,879)  
(1,738) 
Tax on other comprehensive 
income (loss)
10
 
—  
—  
—  
—  
(90)  
732  
642 
Transferred to the income 
statement
 
—  
—  
—  
—  
(713)  
—  
(713) 
Total comprehensive income 
(loss) for the year
 
—  
—  
—  
—  
338  
(242)  
96 
Dividends to shareholders
12
 
—  
—  
—  
—  
—  
(753)  
(753) 
Share-based payments
21
 
—  
—  
—  
—  
—  
80  
80 
Tax on share-based payments
10
 
—  
—  
—  
—  
—  
(9)  
(9) 
Net buyback of own shares
20
 
—  
—  
(148)  
—  
—  
(34)  
(182) 
Other movements
 
—  
—  
—  
—  
—  
(2)  
(2) 
At 31 March 2023
 
499  
1,051  
(422)  
998  
957  
11,431  
14,514 
Profit for the year
 
—  
—  
—  
—  
—  
855  
855 
Other comprehensive income 
(loss) – before tax
 
—  
—  
—  
—  
(708)  
(2,455)  
(3,163) 
Tax on other comprehensive 
income (loss)
10
 
—  
—  
—  
—  
78  
600  
678 
Transferred to the income 
statement
 
—  
—  
—  
—  
356  
—  
356 
Total comprehensive income 
(loss) for the year
 
—  
—  
—  
—  
(274)  
(1,000)  
(1,274) 
Dividends to shareholders
12
 
—  
—  
—  
—  
—  
(757)  
(757) 
Share-based payments
21
 
—  
—  
—  
—  
—  
71  
71 
Tax on share-based payments
10
 
—  
—  
—  
—  
—  
(12)  
(12) 
Net buyback of own shares
20
 
—  
—  
111  
—  
—  
(137)  
(26) 
Transfer to realised profitf
 
—  
—  
—  
—  
33  
(33)  
— 
Other movements
 
—  
—  
—  
—  
—  
2  
2 
At 31 March 2024
 
499  
1,051  
(311)  
998  
716  
9,565  
12,518 
a The allotted, called up, and fully paid ordinary share capital of BT Group plc at 31 March 2024 was £499m comprising 9,968,127,681 ordinary shares of 5p each (31 March 2023: 
£499m comprising 9,968,127,681 ordinary shares of 5p each).
b The share premium account, comprising the premium on allotment of shares, is not available for distribution.
c For further analysis of own shares, see note 20.
d The merger reserve balance at 1 April 2022 includes £998m related to the group reorganisation that occurred in November 2001 and represented the difference between the 
nominal value of shares in the new parent company, BT Group plc, and the aggregate of the share capital, share premium account and capital redemption reserve of the prior 
parent company, British Telecommunications plc.
e For further analysis of other reserves, see note 29.
f  Includes amounts relating to disposal of investments, for further analysis see note 29. 
BT Group plc Annual Report 2024
148
Financial statements
Group statement of changes in equity

2024
2023
Notes
£m
£m
Cash flow from operating activities
Profit before taxation
 
1,186  
1,729 
Share of post tax loss (profit) of associates and joint ventures
 
21  
59 
Net finance expense
 
1,007  
831 
Operating profit
 
2,214  
2,619 
Other non-cash charges
 
76  
89 
(Profit) loss on disposal of businessesa
 
(15)  
157 
Loss (profit) on disposal of property, plant and equipment and intangible assets
 
3  
2 
Depreciation and amortisation, including impairment chargesb
6
 
5,398  
4,818 
(Increase) decrease in inventories
 
(60)  
(47) 
Decrease in programme rights
 
—  
7 
(Increase) decrease in trade and other receivables
 
(843)  
(285) 
Decrease (increase) in contract assets
 
157  
(17) 
(Decrease) increase in trade and other payables
 
(89)  
232 
Increase (decrease) in contract liabilities
 
39  
41 
(Decrease) increase in other liabilitiesc
 
(850)  
(919) 
(Decrease) increase in provisions
 
(18)  
(109) 
Cash generated from operations
 
6,012  
6,588 
Income taxes (paid) refunded
 
(59)  
136 
Net cash inflow from operating activities
 
5,953  
6,724 
Cash flow from investing activities
Interest received
 
140  
41 
Dividends received from joint ventures, associates and investments
 
20  
9 
Proceeds on disposal of businesses
 
81  
29 
Proceeds on disposal of current financial assetsd
 
12,389  
11,868 
Purchases of current financial assetsd
 
(11,216)  
(12,705) 
Net (purchase) disposal of non-current asset investments
 
—  
(5) 
Proceeds on disposal of property, plant and equipment and intangible assets
 
2  
— 
Purchases of property, plant and equipment and intangible assetse
 
(4,969)  
(5,307) 
Prepayment for forward sale of copperf
 
105  
— 
Decrease (increase) in amounts owed by joint ventures
 
117  
(265) 
Settlement of minimum guarantee liability with sports joint venture
17
 
(211)  
(61) 
Net cash outflow from investing activities
 
(3,542)  
(6,396) 
Cash flow from financing activities
Equity dividends paid
 
(759)  
(751) 
Interest paid
 
(865)  
(709) 
Repayment of borrowingsg
 
(1,676)  
(513) 
Proceeds from bank loans and bonds
 
2,242  
2,203 
Payment of lease liabilities
 
(748)  
(727) 
Cash flows from collateral (paid) receivedh
 
(532)  
(17) 
Changes in ownership interests in subsidiaries
 
(13)  
— 
Proceeds from exercise of employee share options
 
57  
5 
Repurchase of ordinary share capital
 
(133)  
(138) 
Increase (decrease) in amounts owed to joint ventures
26
 
(1)  
11 
Net cash outflow from financing activities
 
(2,428)  
(636) 
Net decrease in cash and cash equivalents
 
(17)  
(308) 
Opening cash and cash equivalents
 
381  
692 
Net decrease in cash and cash equivalents
 
(17)  
(308) 
Effect of exchange rate changes
 
(8)  
(3) 
Closing cash and cash equivalentsi
25
 
356  
381 
a FY24 net profit comprises £25m profit on divestments completing in the year less £10m net transaction costs in relation to BT Sport disposal, see note 22. 
b Depreciation and amortisation includes goodwill impairment charges of £488m (FY23: £nil),  see note 13 for further details.
c Includes pension deficit payments of £823m (FY23: £994m).
d Primarily consists of investment in and redemption of amounts held in liquidity funds.
e Property, plant and equipment, engineering stores and software additions of £4,880m (FY23: £5,056m) (see note 4) and capital accruals movements of £89m (FY23: £251m).
f In FY24 we received an upfront prepayment of £105m from entering into a forward agreement to sell copper granules created from surplus copper cables which are currently 
recognised within property, plant and equipment (note 14). As this is expected to be the only cash flow that occurs as part of this transaction the cash receipt has been included as a 
separate line within cash flows from investing activities. See note 26 for further details.
g Repayment of borrowings includes the impact of hedging.
h Cash flows relating to cash collateral held in respect of derivative financial assets with certain counterparties, see note 28 for further details.
i
Net of bank overdrafts of £58m (FY23: £11m).
  
BT Group plc Annual Report 2024
149
Financial statements
Group cash flow statement
Year ended 31 March

Preparation of the financial statements
The consolidated financial statements have been prepared in 
accordance with UK-adopted international accounting standards 
and with the requirements of the Companies Act 2006. 
The consolidated financial statements are prepared on a going 
concern basis.
This assessment is consistent with the assessment of our viability, 
as set out on pages 81 to 82, which has been based on the 
Company’s strategy, balance sheet and financing position, 
including our £2.1bn undrawn committed borrowing facility which 
matures in March 2027, and the potential impact of ‘Our principal 
risks and uncertainties’ (pages 63 to 70); and which estimates the 
financial impact of a severe but plausible outcome for each risk, 
both individually, in combination and through stochastic risk 
modelling. This stress testing confirmed that existing projected 
cash flows and cash management activities provide us with 
adequate headroom over the going concern assessment period. 
Having assessed the principal and emerging risks, the directors 
considered it appropriate to adopt the going concern basis of 
accounting when preparing the group and parent company 
financial statements. This assessment covers the period to May 
2025, which is consistent with the FRC guidance. When reaching 
this conclusion, the directors took into account the group’s and 
parent company’s overall financial position (including trading 
results and ability to repay term debt as it matures without 
recourse to refinancing) and the exposure to principal risks.
In preparing the financial statements, the directors have 
considered the impact of climate change, particularly in the 
context of the risks identified in the TCFD disclosure on pages 71 
to 80 this year. There has been no material impact identified in 
respect of the judgements and estimates reported in these 
financial statements. The following impacts were considered:
– Low carbon fleet – see note 14 
These financial statements consolidate BT Group plc, the parent 
company, and its subsidiaries (together the ‘group’, ‘us’, ‘we’ or 
‘our’).
The consolidated financial statements are prepared on the 
historical cost basis, except for certain financial and equity 
instruments that have been measured at fair value. The 
consolidated financial statements are presented in sterling, the 
functional currency of BT Group plc.
These financial statements cover the financial year from 1 April 
2023 to 31 March 2024 (‘FY24’), with comparative figures for the 
financial year from 1 April 2022 to 31 March 2023 (‘FY23’).
New and amended accounting standards effective during 
the year
The following amended standards were effective during the year, 
none of which had a material impact on the financial statements of 
the group:
IFRS 17 Insurance Contracts
BT adopted IFRS 17 with retrospective application on 1 April 2023. 
The standard establishes principles for the recognition, 
measurement, presentation and disclosure of insurance contracts. 
The measurement method for insurance contracts required by 
IFRS 17 is a probability weighted discounted cash flow model, 
including a best estimate and an adjustment for non-financial risk 
calculated for groups of similar contracts.
IFRS 17 primarily impacts insurance entities, however, as it applies 
to individual contracts it is possible that non-insurers could issue 
contracts that are in scope of the standard such as product 
breakdown contracts or warranties.
We have assessed the impact of the standard on the group, and 
concluded that its impact is not material. Contracts in scope of the 
standard entered into by the group are restricted to intragroup 
insurance arrangements; the group does not issue external 
insurance contracts.
Disclosure of Accounting Policies (Amendments to IAS 1 
and IFRS Practice Statement 2)
These amendments require the disclosure of ‘material’ rather than 
‘significant’ accounting policies. The amendments have not 
resulted in any changes to accounting policies disclosures made in 
these financial statements. 
International Tax Reform – Pillar Two Model Rules 
(Amendments to IAS 12 Income Taxes)
The IASB amended the scope of IAS 12 to introduce a temporary 
mandatory exception from deferred tax accounting for top-up tax 
arising from the implementation of the OECD Pillar Two model 
rules. This was endorsed in the UK in July 2023 and applies to 
accounting periods beginning on or after 1 January 2023.
The group applies the exception to recognising and disclosing 
information about deferred tax assets and liabilities related to 
Pillar Two income taxes, as provided in the amendments to IAS 12 
issued in May 2023.
Other
The following changes have not had a significant impact on our 
consolidated financial statements: 
– Definition of Accounting Estimate (Amendments to IAS 8)
– Deferred Tax related to Assets and Liabilities arising from a 
Single Transaction (Amendments to IAS 12)
IFRS Interpretations Committee agenda decisions
The IFRS Interpretations Committee (IFRIC) periodically issues 
agenda decisions which explain and clarify how to apply the 
principles and requirements of IFRS. Agenda decisions are 
authoritative and may require the group to revise accounting 
policies or practice to align with the interpretations set out in the 
decision. 
We regularly review IFRIC updates and assess the impact of 
agenda decisions. No agenda decisions finalised during FY24 have 
been assessed as having a significant impact on the group.
New and amended accounting standards that have been 
issued but are not yet effective
The following new or amended standards and interpretations are 
applicable in future periods and are not expected to have a 
material impact on the consolidated financial statements:
Supplier Finance Arrangements (Amendments to IAS 7 and 
IFRS 7)
The amendments will apply to the group from FY25 onwards and 
require new disclosures relating to supplier finance arrangements 
that assist in assessing their effects on liabilities, cash flows and 
exposure to liquidity risk.
We participate in supply chain financing arrangements which the 
amendments will apply to, see note 17. We will include the 
required disclosures in the FY25 financial statements. 
Other
The following are not expected to have a significant impact on the 
consolidated financial statements:
– Classification of Liabilities as Current or Non-current 
(Amendments to IAS 1)
– Non-current Liabilities with Covenants (Amendments to IAS 1)
– Lease Liability in a Sale and Leaseback (Amendments to IFRS 
16)
– Lack of Exchangeability (Amendments to IAS 21)
Accounting policy and operating segment changes
During FY24 we changed the methodology used to allocate 
certain internal costs and our Business CFU began reporting as 
a single unit. 
BT Group plc Annual Report 2024
150
Financial statements
Notes to the consolidated financial statements
1. Basis of preparation

Allocation of central costs
From 1 April 2023 we have revised the methodology used to 
allocate shared Network, Digital and support function costs across 
our units to more closely align the recharges received by each unit 
to their actual consumption and establish clearer driver-focused 
allocation of cost, harmonise principles for pricing and profitability, 
and support greater unit cost ownership and management and 
decision making.
This represents an accounting policy change and in line with the 
requirements of IAS 8 Accounting Policies, Changes in Accounting 
Estimates and Errors we have re-presented FY23 comparatives to 
enable comparability across periods. 
Creation of the Business unit
As disclosed in the FY23 financial statements, the Enterprise and 
Global CFUs have been combined into a single CFU, Business, 
which began reporting as a single unit from 1 April 2023. 
In line with the requirements of IFRS 8 Operating Segments, we 
have re-presented FY23 comparatives to reflect the combined 
unit. 
Re-presentation of prior year comparatives
These changes have resulted in re-presentation of prior year 
comparatives. Changes affect segmental disclosures only and have 
no impact on the overall reported group financial results. 
The following disclosures are impacted by the creation of the 
Business unit only. Re-presentation of prior year comparatives is 
limited to the combination of the balances previously reported in 
respect of the Enterprise and Global units, with no further 
adjustments: 
– Note 5 Revenue: disaggregation of external revenue 
– Note 7 Employees: number of employees
– Note 16 Trade and other receivables: trade receivables not past 
due and accrued income by CFU
Note 4 Segment information is also impacted by changes to the 
allocation of shared costs. Re-presentation of comparatives has 
involved adjustments to reallocate internal costs to report on a 
like-for-like basis with FY24 and to remove internal trading 
between the Enterprise and Global units. Note 32 presents a 
bridge between previously published FY23 financial information 
and comparatives presented in these disclosures: Also presented is 
a bridge in respect of the CFU normalised free cash flow 
comparatives which are re-presented in the Additional information 
on page 231 . 
Presentation of specific items
Our income statement and segmental analysis separately identify 
trading results on an adjusted basis, being before specific items. 
The directors believe that presentation of the group’s results in this 
way is relevant to an understanding of the group’s financial 
performance as specific items are those that in management’s 
judgement need to be disclosed by virtue of their size, nature or 
incidence. 
This presentation is consistent with the way that financial 
performance is measured by management and reported to the 
Board and the Executive Committee and assists in providing an 
additional analysis of our reporting of trading results. Specific 
items may not be comparable to similarly titled measures used by 
other companies.
In determining whether an event or transaction is specific, 
management considers quantitative as well as qualitative factors. 
Examples of charges or credits meeting the above definition and 
which have been presented as specific items in the current and/or 
prior years include significant business restructuring programmes 
such as the current group-wide cost transformation and 
modernisation programme, acquisitions and disposals of 
businesses and investments, impairment of goodwill, charges or 
credits relating to retrospective regulatory matters, property 
rationalisation programmes, historical property-related provisions, 
significant out-of-period contract settlements, net interest on our 
pension obligation, and the impact of remeasuring deferred tax 
balances. In the event that items meet the criteria, which are 
applied consistently from year to year, they are treated as specific 
items. Any releases to provisions originally booked as a specific 
item are also classified as specific. Conversely, when a reversal 
occurs in relation to a prior year item not classified as specific, the 
reversal is not classified as specific in the current year.
Movements relating to the sports joint venture (Sports JV) with 
Warner Bros. Discovery (WBD), such as fair value gains or losses on 
the A and C preference shares or impairment charges on the 
equity-accounted investment are classified as specific. Refer to 
note 24 for further detail.
Specific items for the current and prior year are disclosed in note 9.
2. Critical & key accounting estimates and 
significant judgements
The preparation of financial statements in conformity with IFRS 
requires the use of accounting estimates and assumptions. It also 
requires management to exercise its judgement in the process of 
applying our accounting policies. We continually evaluate our 
estimates, assumptions and judgements based on available 
information and experience. As the use of estimates is inherent in 
financial reporting, actual results could differ from these estimates. 
Our critical accounting estimates are those estimates that carry a 
significant risk of resulting in a material adjustment to the carrying 
amount of assets and liabilities within the next financial year. We 
also make other key estimates when preparing the financial 
statements, which, while not meeting the definition of a critical 
estimate, involve a higher degree of complexity and can 
reasonably be expected to be of relevance to a user of the financial 
statements. Management has discussed its critical and other key 
accounting estimates and associated disclosures with the Audit 
and Risk Committee.
Significant judgements are those made by management in 
applying our material accounting policies that have a material 
impact on the amounts presented in the financial statements. We 
may exercise significant judgement in our critical and key 
accounting estimates. 
Our critical and key accounting estimates and significant 
judgements are described in the following notes to the financial 
statements. They can be identified by the following symbol 
.
Note
Critical 
estimate
Key estimate
Significant 
judgement
5. Estimate of customer refund 
liability
ü
10. Current and deferred 
income tax
ü
ü
13. Goodwill impairment
ü
ü
14. Determining the point of 
sale of BT Tower
ü
15. Reasonable certainty and 
determination of lease terms
ü
18. Identifying contingent 
liabilities
ü
18. Provisions
ü
ü
19. Valuation of pension assets 
and liabilities
ü
ü
24. Valuation of investment in 
A preference shares in Sports 
joint venture
ü
BT Group plc Annual Report 2024
151
Financial statements
1. Basis of preparation continued

The material accounting policies applied in the preparation of our 
consolidated financial statements are set out below. Other 
material accounting policies applicable to a particular area are 
disclosed in the most relevant note. They can be identified by the 
following symbol 
.
We have applied all policies consistently to all the years presented, 
unless otherwise stated.
Basis of consolidation
The group financial statements consolidate the financial 
statements of BT Group plc and its subsidiaries, and include its 
share of the results of associates and joint ventures using the 
equity method of accounting. The group recognises its direct rights 
to (and its share of) jointly held assets, liabilities, revenues and 
expenses of joint operations under the appropriate headings in the 
consolidated financial statements.
All business combinations are accounted for using the acquisition 
method regardless of whether equity instruments or other assets 
are acquired.
A subsidiary is an entity that is controlled by another entity, known 
as the parent or investor. An investor controls an investee when the 
investor is exposed, or has rights, to variable returns from its 
involvement with the investee and has the ability to affect those 
returns through its power over the investee.
Non-controlling interests in the net assets of consolidated 
subsidiaries, which consist of the amounts of those interests at the 
date of the original business combination and non-controlling 
share of changes in equity since the date of the combination, are 
not material to the group’s financial statements.
The results of subsidiaries acquired or disposed of during the year 
are consolidated from and up to the date of change of control. 
Where necessary, accounting policies of subsidiaries have been 
aligned with the policies adopted by the group. All intra-group 
transactions including any gains or losses, balances, income or 
expenses are eliminated on consolidation.
When the group loses control of a subsidiary, the profit or loss on 
disposal is calculated as the difference between (i) the aggregate 
of the fair value of the consideration received and the fair value of 
any retained interest and (ii) the previous carrying amount of the 
assets (including goodwill), and liabilities of the subsidiary and any 
non-controlling interests. The profit or loss on disposal is 
recognised as a specific item.
Associates are those entities in which the group has significant 
influence, but not control or joint control, over the financial and 
operating policies.
A joint venture is an arrangement in which the group has joint 
control, whereby the group has rights to the net assets of the 
arrangement, rather than rights to its assets and obligations for its 
liabilities. Joint control is the contractually agreed sharing of 
control of an arrangement, which exists only when decisions about 
the activities that significantly affect the returns of the 
arrangement require the unanimous consent of the parties sharing 
control.
Interests in associates and joint ventures are initially recognised at 
cost (including transaction costs) except where they relate to a 
retained non-controlling interest in a former subsidiary, which is 
initially recognised at a deemed cost being the fair value of the 
retained interest. Subsequent to initial recognition, the 
consolidated financial statements include the group’s share of the 
profit or loss and other comprehensive income of equity-
accounted investees, until the date on which significant influence 
or joint control ceases.
Inventories
Network maintenance equipment and equipment to be sold to 
customers are stated at the lower of cost or net realisable value, 
taking into account expected revenue from the sale of packages 
comprising a mobile handset and a subscription. Cost corresponds 
to purchase or production cost determined by either the first in 
first out (FIFO) or average cost method.
Government grants
Government grants are recognised when there is reasonable 
assurance that the conditions associated with the grants have been 
complied with and the grants will be received.
Grants for the purchase or production of property, plant and 
equipment are deducted from the cost of the related assets and 
reduce future depreciation expense accordingly. Grants for the 
reimbursement of operating expenditure are deducted from the 
related category of costs in the income statement. Estimates and 
judgements applied in accounting for government grants received 
in respect of Building Digital UK (BDUK) and other rural superfast 
broadband contracts are described in note 14. 
Once a government grant is recognised, any related deferred 
income is treated in accordance with IAS 20 ‘Accounting for 
Government Grants and Disclosure of Government Assistance’.
Foreign currencies
The consolidated financial statements are presented in sterling, 
which is also the company’s functional currency. Each group entity 
determines its own functional currency.
Foreign currency transactions are translated into the functional 
currency using the exchange rates prevailing at the date of the 
transaction. Foreign exchange gains and losses resulting from the 
settlement of transactions and the translation of monetary assets 
and liabilities denominated in foreign currencies at period end 
exchange rates are recognised in the income statement line which 
most appropriately reflects the nature of the item or transaction.
On consolidation, assets and liabilities of foreign undertakings are 
translated into the group’s presentation currency at year end 
exchange rates. The results of foreign undertakings are translated 
into sterling at the rates prevailing on the transaction dates. 
Foreign exchange differences arising on the retranslation of 
foreign undertakings are recognised directly in a separate 
component of equity, the translation reserve. There is no material 
exposure to companies operating in hyperinflationary economies.
In the event of the disposal of an undertaking with assets and 
liabilities denominated in a foreign currency, the cumulative 
translation difference associated with the undertaking in the 
translation reserve is charged or credited to the gain or loss on 
disposal recognised in the income statement.
Research and development
Research expenditure is recognised in the income statement in the 
period in which it is incurred. Development expenditure, including 
the cost of internally developed software, is recognised in the 
income statement in the period in which it is incurred unless it is 
probable that economic benefits will flow to the group from the 
asset being developed, the cost of the asset can be reliably 
measured and technical feasibility can be demonstrated, in which 
case it is capitalised as an intangible asset on the balance sheet. 
Capitalisation ceases when the asset being developed is ready for 
use. Research and development costs include direct and indirect 
labour, materials and directly attributable overheads.
Termination benefits
Termination benefits (leaver costs) are payable when employment 
is terminated before the normal retirement date, or when an 
employee accepts voluntary redundancy in exchange for these 
benefits. We recognise termination benefits when they are 
demonstrably committed to the affected employees leaving 
the group.
BT Group plc Annual Report 2024
152
Financial statements
Notes to the consolidated financial statements continued
3. Material accounting policies that apply to the overall financial statements

 Material accounting policies that apply to segment information
Operating and reportable segments
Our operating segments are reported based on financial information provided to the Executive Committee, which is the key 
management committee and represents the ‘chief operating decision maker’.
Our organisational structure reflects the different customer groups to which we provide communications products and services via 
our customer-facing units (CFUs). The CFUs are our reportable segments and generate substantially all of our revenue.
During the year to 31 March 2024 the group had three CFUs: Consumer, Business and Openreach. Business was formed from the 
merger of the Global and Enterprise units during FY23 and has been monitored by the Executive Committee on a consolidated basis 
since 1 April 2023.
The CFUs are supported by technology units (TUs) comprising Digital and Networks; and corporate units (CUs) including 
procurement and property management. TUs and CUs are not reportable segments as they did not meet the quantitative thresholds 
as set out in IFRS 8 ‘Operating Segments’ for any of the years presented.
We aggregate the remaining operations and include them in the ‘Other’ category to reconcile to the consolidated results of the 
group. The ‘Other’ category includes unallocated TU costs and our CUs.
Allocation of certain items to segments
Provisions for the settlement of significant legal, commercial and regulatory disputes, which are negotiated at a group level, are 
initially recorded in the ‘Other’ segment. On resolution of the dispute, the full impact is recognised in the results of the relevant CFU 
and offset in the group results through the utilisation of the provision previously charged to the ‘Other’ segment. Settlements which 
are particularly significant or cover more than one financial year may fall within the definition of specific items as detailed in note 9, in 
which case they are not reflecting in the results of the reportable segment in line with how they are reported to the Executive 
Committee.
The costs incurred by TUs and CUs are recharged to the CFUs to reflect the services provided to them. Depreciation and 
amortisation incurred by TUs in relation to the networks and systems they manage and operate on behalf of the CFUs is allocated to 
the CFUs based on their respective utilisation. Capital expenditure incurred by TUs for specific projects undertaken on behalf of the 
CFUs is allocated based on the value of the directly attributable expenditure incurred. Where projects are not directly attributable to 
a particular CFU, capital expenditure is allocated among them based on the proportion of estimated future economic benefits.
Specific items are detailed in note 9 and are not allocated to the reportable segments as this reflects how they are reported to the 
Executive Committee. Finance expense and income are not allocated to the reportable segments, as the central treasury function 
manages this activity, together with the overall net debt position of the group. 
Measuring segment performance
Performance of each reportable segment is measured based on adjusted EBITDA. Adjusted EBITDA is defined as the group profit or 
loss before specific items, net finance expense, taxation, depreciation and amortisation and share of post tax profits or losses of 
associates and joint ventures. Adjusted EBITDA is considered to be a useful measure of the operating performance of the CFUs 
because it approximates the underlying operating cash flow by eliminating depreciation and amortisation and also provides a 
meaningful analysis of trading performance by excluding specific items, which are disclosed separately by virtue of their size, nature 
or incidence.  We also increasingly track adjusted operating profit which reflects the growing depreciation expense arising from our 
elevated network investment.
Revenue recognition
Our revenue recognition policy is set out in note 5. 
Internal revenue and costs
Most of our internal trading relates to Openreach and arises on rentals, and any associated connection or migration charges, of the 
UK access lines and other network products to the other CFUs, including the use of BT Ireland’s network. This occurs both directly, 
and also indirectly, through TUs which are included within the ‘Other’ segment. Business internal revenue arises from Consumer for 
mobile Ethernet access and TUs for transmission planning services. Intra-group revenue generated from the sale of regulated 
products and services is based on market price. Intra-group revenue from the sale of other products and services is agreed between 
the relevant CFUs and therefore the profitability of CFUs may be impacted by transfer pricing levels.
Geographic segmentation
The UK is our country of domicile and is where we generate the majority of our revenue from external UK customers. The geographic 
analysis of revenue is based on the country in which the customer is invoiced. The geographic analysis of non-current assets, which 
excludes derivative financial instruments, investments, preference shares in joint ventures, retirement benefit schemes in surplus and 
deferred tax assets, is based on the location of the assets. 
BT Group plc Annual Report 2024
153
Financial statements
4. Segment information

Segment revenue and profit
Consumer
Business
Openreach
Other
Total
Year ended 31 March 2024
£m
£m
£m
£m
£m
Segment revenue
 
9,833  
8,128  
6,077  
16  
24,054 
Internal revenue
 
(47)  
(71)  
(3,101)  
—  
(3,219) 
Adjusteda revenue from external customers
 
9,786  
8,057  
2,976  
16  
20,835 
Adjusted EBITDAb
 
2,672  
1,630  
3,827  
(29)  
8,100 
Depreciation and amortisationa
 
(1,738)  
(984)  
(2,052)  
(125)  
(4,899) 
Adjusteda operating profit (loss)
 
934  
646  
1,775  
(154)  
3,201 
Specific operating profit (loss) – see note 9
 
(987) 
Operating profit
 
2,214 
Net finance expensec
 
(1,007) 
Share of post tax (loss) profit of associates and joint ventures
 
(21) 
Profit before tax
 
1,186 
Consumer
Business
Openreach
Other
Total
Year ended 31 March 2023 (re-presentedd)
£m
£m
£m
£m
£m
Segment revenue
 
9,737  
8,258  
5,675  
27  
23,697 
Internal revenue
 
(57)  
(81)  
(2,890)  
—  
(3,028) 
Adjusteda revenue from external customers
 
9,680  
8,177  
2,785  
27  
20,669 
Adjusted EBITDAb
 
2,469  
1,945  
3,510  
4  
7,928 
Depreciation and amortisationa
 
(1,603)  
(1,047)  
(1,965)  
(138)  
(4,753) 
Adjusteda operating profit (loss)
 
866  
898  
1,545  
(134)  
3,175 
Specific operating profit (loss) – see note 9
 
(556) 
Operating profit
 
2,619 
Net finance expensec
 
(831) 
Share of post tax (loss) profit of associates and joint ventures
 
(59) 
Profit before tax
 
1,729 
a Before specific items.
b Adjusted EBITDA is defined as profit or loss before specific items, net finance expense, taxation, depreciation and amortisation and share of post tax profits or losses of associates and 
joint ventures. 
c Net finance expense includes specific item expense of £121m (FY23: £5m). See note 9.
d  Comparatives for the year ended 31 March 2023 have been re-presented for the impact of the creation of our Business customer-facing unit and a change in the methodology used 
to allocate shared central costs. For more information see note 1, and for a bridge to prior period published financial information see note 32.
Internal revenue and costs
Internal cost recorded by
Consumer
Business
Openreach
Other
Total
Year ended 31 March 2024
£m
£m
£m
£m
£m
Internal revenue recorded by
Consumer
 
—  
46  
—  
1  
47 
Business
 
23  
—  
—  
48  
71 
Openreach
 
2,044  
1,043  
—  
14  
3,101 
Total
 
2,067  
1,089  
—  
63  
3,219 
Internal cost recorded by
Consumer
Business
Openreach
Other
Total
Year ended 31 March 2023 (re-presenteda)
£m
£m
£m
£m
£m
Internal revenue recorded by
Consumer
 
—  
56  
—  
1  
57 
Business
 
26  
—  
—  
55  
81 
Openreach
 
1,805  
1,072  
—  
13  
2,890 
Total
 
1,831  
1,128  
—  
69  
3,028 
a Comparatives for the year ended 31 March 2023 have been re-presented for the impact of the creation of our Business customer-facing unit. For more information see note 1, and 
for a bridge to prior period published financial information see note 32.
BT Group plc Annual Report 2024
154
Financial statements
Notes to the consolidated financial statements continued
4. Segment information continued

Capital expenditure 
Consumer
Business
Openreach
Other
Total
Year ended 31 March 2024
£m
£m
£m
£m
£m
Intangible assetsa
 
439  
361  
135  
3  
938 
Property, plant and equipmentb
 
736  
414  
2,710  
82  
3,942 
Capital expenditure
 
1,175  
775  
2,845  
85  
4,880 
Consumer
Business
Openreach
Other
Total
Year ended 31 March 2023 (re-presentedc)
£m
£m
£m
£m
£m
Intangible assetsa
 
552  
361  
101  
4  
1,018 
Property, plant and equipmentb
 
669  
525  
2,746  
98  
4,038 
Capital expenditure
 
1,221  
886  
2,847  
102  
5,056 
a Additions to intangible assets as presented in note 13.
b Additions to property, plant and equipment as presented in note 14, inclusive of movement on engineering stores. 
c Comparatives for the year ended 31 March 2023 have been re-presented for the impact of the creation of our Business customer-facing units. For more information see note 1, and 
for a bridge to prior period published financial information see note 32. 
Geographic segmentation
Revenue from external customers
Year ended 31 March
2024
2023
£m
£m
UK
 
18,450  
18,154 
Europe, Middle East and Africa, excluding the UK
 
1,303  
1,372 
Americas
 
617  
684 
Asia Pacific
 
465  
459 
Adjusteda revenue
 
20,835  
20,669 
a Before specific items.
Non-current assets
At 31 March
2024
2023
£m
£m
UK
 
39,370  
39,387 
Europe, Middle East and Africa, excluding the UK
 
634  
740 
Americas
 
251  
283 
Asia Pacific
 
147  
156 
Non-current assetsa
 
40,402  
40,566 
a Comprising the following balances presented in the group balance sheet: intangible assets, property, plant and equipment, right-of-use assets, joint ventures and associates,  trade 
and other receivables and contract assets.
BT Group plc Annual Report 2024
155
Financial statements
4. Segment information continued

 Material accounting policies that apply to revenue
Revenue from contracts with customers in scope of IFRS 15
Most revenue recognised by the group is in scope of IFRS 15, excluding Openreach where most revenue is in scope of IFRS 16. The 
revenue recognition policy for both is set out below. 
On inception of the contract we identify a “performance obligation” for each of the distinct goods or services we have promised to 
provide to the customer. The consideration specified in the contract with the customer is allocated to each performance obligation 
identified based on their relative standalone selling prices, and is recognised as revenue as they are satisfied. 
The table below summarises the performance obligations we have identified for our major service lines and provides information on 
the timing of when they are satisfied and the related revenue recognition policy. Also detailed in this note is revenue expected to be 
recognised in future periods for contracts in place at 31 March 2024 that contain unsatisfied performance obligations.
Service line
Performance obligations
Revenue recognition policy
Information and 
communications 
technology (ICT) 
and managed 
networks
Provision of networked IT services, managed network 
services, and arrangements to design and build 
software solutions. Performance obligations are 
identified for each distinct service or deliverable for 
which the customer has contracted, and are 
considered to be satisfied over the time period that we 
deliver these services or deliverables. Commitments to 
provide hardware to customers that are distinct from 
the other promises are considered to be satisfied at the 
point in time that control passes to the customer.
Revenue for services is recognised over time using a 
measure of progress that appropriately reflects the 
pattern by which the performance obligation is 
satisfied. For time and materials contracts, revenue is 
recognised as the service is received by the customer. 
Where performance obligations exist for the provision 
of hardware, revenue is recognised at the point in time 
that the customer obtains control of the promised 
asset. For long-term fixed price contracts revenue 
recognition will typically be based on the satisfaction 
of performance obligations in respect of the 
achievement of contract milestones and customer 
acceptance, which is the best measure of progress 
towards the completion of the performance obligation.
Fixed access 
subscriptions
Provision of broadband, TV and fixed telephony 
services including national and international calls, 
connections, line rental and calling features. 
Performance obligations exist for each ongoing service 
provided to the customer and are satisfied over the 
period that the services are provided. Installation 
services are recognised as distinct performance 
obligations if their relationship with the other services 
in the contract is purely functional. These are satisfied 
when the customer benefits from the service. 
Connection services are not distinct performance 
obligations and are therefore combined with the 
associated service performance obligation.
Fixed subscription charges are recognised as revenue 
on a straight-line basis over the period that the 
services are provided. Upfront charges for non-distinct 
connection and installation services are deferred as 
contract liabilities and are recognised as revenue over 
the same period. Variable charges such as call charges 
are recognised when the related services are delivered. 
Where installation activities are distinct performance 
obligations, revenue is recognised at the point in time 
that the installation is completed.
Mobile 
subscriptions
Provision of mobile postpaid and prepaid services, 
including voice minutes, SMS and data services. 
Performance obligations exist for each ongoing service 
provided to the customer and are satisfied over the 
period that the services are provided.
Subscription fees, consisting primarily of monthly 
charges for access to internet or voice and data 
services, are recognised as the service is provided. 
One-off services such as calls outside of plan and 
excess data usage are recognised when the service is 
used.
Equipment and 
other services
Provision of equipment and other services, including 
mobile phone handsets and hardware such as set-top 
boxes and broadband routers provided as part of 
customer contracts. Performance obligations are 
satisfied at the point in time that control passes to the 
customer. For other services, performance obligations 
are identified based on the distinct goods and services 
we have committed to provide.
Revenue from equipment sales is recognised at the 
point in time that control passes to the customer. 
Where payment is not received in full at the time of the 
sale, such as with equipment provided as part of 
mobile and fixed access subscriptions, contract assets 
are recognised for the amount due from the customer 
that will be recovered over the contract period. 
Revenue to be recognised is calculated by reference to 
the relative standalone selling price of the equipment. 
For other services, revenue is recognised when the 
related performance obligations are satisfied, which 
could be over time, in line with contract milestones, or 
at a point in time depending on the nature of the 
service.
BT Group plc Annual Report 2024
156
Financial statements
Notes to the consolidated financial statements continued
5. Revenue

We recognise revenue based on the relative standalone selling price of each performance obligation. Determining the standalone 
selling price often requires judgement and may be derived from regulated prices, list prices, a cost-plus derived price or the price of 
similar products when sold on a standalone basis by BT or a competitor. In some cases it may be appropriate to use the contract price 
when this represents a bespoke price that would be the same for a similar customer in a similar circumstance.
The fixed access and mobile subscription arrangements sold by our Consumer business are typically payable in advance, with any 
variable or one-off charges billed in arrears. Contracts are largely inflation-linked with price increases recognised when effective. 
Payment is received immediately for direct sales of equipment to customers. Where equipment is provided to customers under 
mobile and fixed access subscription arrangements, payment for the equipment is received over the course of the contract term. For 
sales by our enterprise businesses, invoices are issued in line with contractual terms. Payments received in advance are recognised as 
contract liabilities; amounts billed in arrears are recognised as contract assets. 
We adopt variable consideration to allocate the transaction price to take account of the likelihood of the customer upgrading to a 
new handset during the contract term. Consideration is constrained to a period shorter than the contract term and is allocated to the 
handset and airtime based on relative standalone selling price. Certain Business long term contracts offer rebates to our customers. 
Where this is the case we make an estimate of variable consideration at the outset of the contract based on assumed volumes. These 
rebates are normally settled monthly against service revenues. 
We are applying the practical expedient to recognise revenue “as-invoiced” for certain fixed access and mobile subscription services 
revenues. Where we have a right to invoice at an amount that directly corresponds with performance to date, we recognise revenue 
at that amount. We have also adopted the practical expedient not to calculate the aggregate amount of the transaction price 
allocated to the performance obligations that are unsatisfied for these contracts. 
We do not have any material obligations in respect of returns, refunds or warranties. 
Where we act as an agent in a transaction, such as insurance services offered, we recognise commission net of directly attributable 
costs. 
We exercise judgement in assessing whether the initial set-up, transition and transformation phases of long-term contracts are 
distinct from the other services to be delivered under the contract and therefore represent distinct performance obligations. This 
determines whether revenue is recognised in the early stages of the contract, or deferred until delivery of the other services 
promised in the contract begins. 
We recognise immediately the entire estimated loss for a contract when we have evidence that the contract is unprofitable. If these 
estimates indicate that any contract will be less profitable than previously forecast, contract assets may have to be written down to 
the extent they are no longer considered to be fully recoverable. We perform ongoing profitability reviews of our contracts in order 
to determine whether the latest estimates are appropriate. Key factors reviewed include:
– Transaction volumes or other inputs affecting future revenues which can vary depending on customer requirements, plans, market 
position and other factors such as general economic conditions.
– Our ability to achieve key contract milestones connected with the transition, development, transformation and deployment 
phases for customer contracts.
– The status of commercial relations with customers and the implications for future revenue and cost projections.
– Our estimates of future staff and third party costs and the degree to which cost savings and efficiencies are deliverable.
Revenue from lease arrangements in scope of IFRS 16
Some consumer broadband and TV products and arrangements to provide external communications providers with exclusive use of 
Openreach’s fixed-network telecommunications infrastructure meet the definition of operating leases under IFRS 16.
At inception of a contract, we determine whether the contract is, or contains, a lease following the accounting policy set out in note 
15. Arrangements meeting the definition of a lease in which we act as lessor are classified as operating or finance leases at lease 
inception based on an overall assessment of whether the lease transfers substantially all the risks and rewards incidental to 
ownership of the underlying asset. If this is the case then the lease is a finance lease; if not, it is an operating lease. For sub-leases, we 
make this assessment by reference to the characteristics of the right-of-use asset associated with the head lease rather than the 
underlying leased asset.
Income from arrangements classified as operating leases is presented as revenue where it relates to our core operating activities, for 
example leases of fixed-line telecommunications infrastructure to external communications providers and leases of devices to 
consumer customers as part of fixed access subscription products. Operating lease income from other arrangements is presented 
within other operating income (note 6).
We recognise operating lease payments as income on a straight-line basis over the lease term. Any upfront payments received, such 
as connection fees, are deferred over the lease term. Determining the lease term is subject to the significant judgements set out in 
note 15.
Where the contract contains both lease and non-lease components, the transaction price is allocated between the components on 
the basis of relative standalone selling price.
Where an arrangement is assessed as a finance lease we derecognise the underlying asset and recognise a receivable equivalent to 
the net investment in the lease. Finance lease receivables are presented in note 16. The receivable is measured based on future 
payments to be received discounted using the interest rate implicit in the lease, adjusted for any direct costs. Any difference between 
the derecognised asset and the finance lease receivable is recognised in the income statement. Where the nature of services 
delivered relates to our core operating activities it is presented as revenue. Where it relates to non-core activities it is presented 
within other operating income (note 6).
BT Group plc Annual Report 2024
157
Financial statements
5. Revenue continued

Disaggregation of external revenue
The following table disaggregates external revenue by our major service lines and by reportable segment.
Consumer
Business
Openreach
Other
Total
Year ended 31 March 2024
£m
£m
£m
£m
£m
ICT and managed networks
 
—  
3,592  
—  
—  
3,592 
Fixed access subscriptions
 
4,333  
2,149  
2,900  
—  
9,382 
Mobile subscriptions
 
3,557  
1,187  
—  
—  
4,744 
Equipment and other services
 
1,896  
1,129  
76  
16  
3,117 
Revenue before specific items
 
9,786  
8,057  
2,976  
16  
20,835 
Specific itemsa (note 9)
 
(38) 
Revenue
 
20,797 
Year ended 31 March 2023 
(re-presentedb)
Consumer
Business
Openreach
Other
Total
£m
£m
£m
£m
£m
ICT and managed networks
 
—  
3,352  
—  
—  
3,352 
Fixed access subscriptions
 
4,059  
1,893  
2,716  
—  
8,668 
Mobile subscriptions
 
3,351  
1,160  
—  
—  
4,511 
Equipment and other services
 
2,270  
1,772  
69  
27  
4,138 
Revenue before specific items
 
9,680  
8,177  
2,785  
27  
20,669 
Specific itemsa (note 9)
 
12 
Revenue
 
20,681 
a Relates to regulatory matters classified as specific. See note 9.
b  Comparatives for the year ended 31 March 2023 have been re-presented for the impact of the creation of our Business customer-facing unit, formed through the merger of our 
Enterprise and Global units, see note 1. 
Revenue expected to be recognised in future periods for performance obligations that are not complete (or are partially complete) as at 
31 March 2024 is £12,133m (FY23: £12,792m). Of this, £6,052m (FY23: £6,592m) relates to ICT and managed services contracts and 
equipment and other services which will substantially be recognised as revenue within three years. Fixed access and mobile subscription 
services typically have shorter contract periods and so £6,081m (FY23: £6,200m) will substantially be recognised as revenue within two 
years. 
Revenue recognised this year relating to performance obligations that were satisfied, or partially satisfied, in previous years was not 
material. Revenue related to customers’ unexercised rights (for example, unused amounts on prepaid SIM cards) was not material. 
 Key accounting estimates made in accounting for revenue
Estimate of customer refunds
Revenue has been adjusted to reflect a risk of billing inaccuracy where there is a high level of manual processing through certain 
billing systems. This is associated with a small number of products within our Business unit which contain bespoke pricing. £41m has 
been recognised as an IFRS 9 financial liability and deducted from revenue, and has been derived from an estimate of the possible 
range of the adjustment from £24m to £64m based on the results of a sample of billing items. This is presented within Note 17  and 
represents our best estimate required to cover ongoing billing adjustments to products relating to both current and prior periods. If 
the final quantum of adjustments is less than expected, the adjustment will be released back to the income statement. 
Lease income
Presented within revenue is £3,031m (FY23: £2,909m) income from arrangements classified as operating leases under IFRS 16 and which 
represent core business activities for the group. Income relates predominantly to Openreach’s leases of fixed-line telecommunications 
infrastructure to external communications providers, classified as fixed access subscription revenue in the table above, and leases of 
devices to Consumer customers as part of fixed access subscription offerings, classified as equipment and other services. 
During the year we also recognised:
– £26m (FY23: £29m) operating lease income from non-core business activities which is presented in other operating income (note 6). 
Note 15 presents an analysis of payments to be received across the remaining term of operating lease arrangements. 
– £40m (FY23: £58m) revenue in relation to upfront gains from arrangements meeting the definition of a finance lease. These 
arrangements meet the criteria for revenue recognition as they concern leases and sub-leases of telecommunications infrastructure 
that represent core business activities of the group. 
£38m (FY23: £69m) of this income relates to the sub-leasing of right-of-use assets. These are primarily operating sub-leases of unutilised 
properties, and finance sub-leases of telecommunications infrastructure.
BT Group plc Annual Report 2024
158
Financial statements
Notes to the consolidated financial statements continued
5. Revenue continued

Contract assets and liabilities
 Material accounting policies that apply to contract assets and liabilities
We recognise contract assets for goods and services for which control has transferred to the customer before we have the right to 
bill. These assets mainly relate to mobile handsets provided upfront but paid for over the course of a contract.  Contract assets are 
reclassified as receivables when the right to payment becomes unconditional and we have billed the customer.
Contract liabilities are recognised when we have received advance payment for goods and services that we have not transferred to 
the customer. These primarily relate to fees received for connection and installation services that are not distinct performance 
obligations.
Where the initial set-up, transition or transformation phase of a long-term contract is considered to be a distinct performance 
obligation we recognise a contract asset for any work performed but not billed. Conversely a contract liability is recognised where 
these activities are not distinct performance obligations and we receive upfront consideration. In this case eligible costs associated 
with delivering these services are capitalised as fulfilment costs, see note 16. 
We provide for expected lifetime losses on contract assets following the policy set out in note 16.
Contract assets and liabilities are as follows:
At 31 March
2024
2023
£m
£m
Contract assets
Current
 
1,410  
1,565 
Non-current
 
330  
369 
 
1,740  
1,934 
Contract liabilities
Current
 
906  
859 
Non-current
 
175  
193 
 
1,081  
1,052 
£876m of the contract liability at 31 March 2023 was recognised as revenue during the year (FY23: £903m). Impairment losses of £35m 
were recognised on contract assets during the year (FY23: £46m).
The expected credit loss provisions recognised against contract assets vary across the group due to the nature of our customers; the 
expected loss rate at 31 March 2024 was 3% (FY23: 3%).
BT Group plc Annual Report 2024
159
Financial statements
5. Revenue continued

Year ended 31 March
Notes
2024
2023
£m
£m
Operating costs by nature
Staff costs:
Wages and salariesa
 
3,843  
3,858 
Social security costs
 
425  
424 
Other pension costs
19
 
582  
590 
Share-based payment expense
21
 
71  
80 
Total staff costs
 
4,921  
4,952 
Own work capitalised
 
(1,432)  
(1,364) 
Net staff costs
 
3,489  
3,588 
Net indirect labour costsb
 
456  
381 
Net labour costs
 
3,945  
3,969 
Product costs
 
3,527  
3,368 
Sales commissions
 
636  
589 
Payments to telecommunications operators
 
1,227  
1,354 
Property and energy costs
 
1,338  
1,242 
Network operating and IT costs
 
930  
913 
TV programme rights chargesc
 
—  
354 
Provision and installation
 
515  
591 
Marketing and sales
 
367  
363 
Net impairment losses on trade receivables and contract assetsd
 
165  
138 
Other operating costs
 
323  
103 
Other operating income
 
(238)  
(243) 
Depreciation and amortisation, including impairment charges
 
4,899  
4,753 
Total operating costs before specific items
 
17,634  
17,494 
Specific items
9
 
949  
568 
Of which goodwill impairment
 
488  
— 
Total operating costs
 
18,583  
18,062 
Operating costs before specific items include the following:
Leaver costsc
 
9  
11 
Research and development expendituree
 
726  
683 
Foreign currency (gains)/losses
 
(2)  
(9) 
Inventories recognised as an expense
 
2,170  
2,311 
a Leaver costs are included within wages and salaries, except for leaver costs of £242m (FY23: £129m) associated with restructuring costs, which have been recorded as specific items.
b Net indirect labour costs relate to subcontracted labour costs net of capitalised indirect labour costs of £772m (FY23: £824m).
c TV programme rights charges relate to programme rights assets which were transferred to the sports joint venture in August 2022, see note 22.
d Consists of net impairment losses on trade receivables and contract assets in Consumer of £98m (FY23: £94m), in Business of £45m (FY23: £32m), in Openreach of £20m (FY23: 
£5m) and in Other of £2m (FY23: £1m).
e  Research and development expenditure includes amortisation of £679m (FY23: £632m) in respect of capitalised development costs and operating expenses of £47m (FY23: £51m). 
In addition, the group capitalised software development costs of £429m (FY23: £503m).
BT Group plc Annual Report 2024
160
Financial statements
Notes to the consolidated financial statements continued
6. Operating costs

Depreciation and amortisation, which includes impairment charges, is analysed as follows:
Year ended 31 March
Notes
2024
2023
£m
£m
Depreciation and amortisation before impairment charges
Intangible assets
13
 
1,248  
1,165 
Property, plant and equipment
14
 
2,892  
2,878 
Right-of-use assets
15
 
652  
689 
Impairment charges
Intangible assets
13
 
—  
— 
Property, plant and equipmenta
14
 
108  
11 
Right-of-use assetsb
15
 
(1)  
10 
Total depreciation and amortisation before specific items
 
4,899  
4,753 
Impairment charges classified as specific items
9
Intangible assetsc
 
488  
— 
Property, plant and equipment
 
—  
— 
Right-of-use assets
 
11  
65 
Total depreciation and amortisation
 
5,398  
4,818 
a  Impairments of network infrastructure and engineering stores in FY24 and other assets in FY23, see note 14.
b FY24 impairment charge reflects a net reversal of impairment on properties reoccupied subsequent to initial impairment. 
c FY24 impairment charge represents impairment of goodwill allocated to our Business cash generating unit, further details in note 13. 
Who are our key management personnel and how are they compensated?
Key management personnel comprise Executive and Non-Executive Directors and members of the Executive Committee. 
Compensation of key management personnel is shown in the table below:
Year ended 31 March
2024
2023
£m
£m
Short-term employee benefits
 
16.6  
23.0 
Post employment benefitsa
 
0.7  
0.7 
Share-based payments
 
8.1  
6.7 
 
25.4  
30.4 
a  Post employment benefits include cash pension allowances paid to the Chief Executive and Chief Financial Officer. The group does not contribute to defined contribution or defined 
benefit pension schemes on behalf of key management personnel.
Key management personnel are compensated solely in the form of cash and share-based payments. During FY24, one member of key 
management personnel (FY23: none) exercised saveshare options, see note 21. 
7. Employees
2024
2023
Number of employees in the group
Averagea
’000
Averageb FTE
’000
Year endb FTE
’000
Averagea
’000
Averageb FTE
’000
Year endb FTE
’000
UK
 
77.3  
74.9  
71.4  
82.2  
79.7  
77.6 
Non-UK
 
20.1  
20.0  
20.3  
19.1  
19.1  
19.5 
Total employees
 
97.4  
94.9  
91.7  
101.3  
98.8  
97.1 
Consumer
 
18.1  
16.3  
15.8  
18.3  
16.5  
16.4 
Businessc
 
23.6  
23.3  
22.6  
25.0  
24.6  
24.0 
Openreach
 
35.1  
34.9  
32.8  
37.9  
37.6  
36.6 
Other
 
20.6  
20.4  
20.5  
20.1  
20.1  
20.1 
Total employees
 
97.4  
94.9  
91.7  
101.3  
98.8  
97.1 
a Average reflecting monthly average headcount.
b Average reflecting the full-time equivalent of full- and part-time employees, excluding subcontract labour. There were 28.4k FTE agency & subcontract labour at the FY24 year-end 
(FY23: 33.0k). 
c Comparatives for the year ended 31 March 2023 have been re-presented for the impact of the creation of our Business customer-facing unit, formed through the merger of our 
Enterprise and Global units, see note 1.
BT Group plc Annual Report 2024
161
Financial statements
6. Operating costs continued

The following fees were paid or are payable to the company’s auditors, KPMG LLP and other firms in the KPMG network.  
2024
2023
Year ended 31 March
£000
£000
Fees payable to the company’s auditors and its associates for:
Audit servicesa
The audit of the parent company and the consolidated financial statements
 
14,473  
13,558 
The audit of the company’s subsidiaries
 
6,294  
6,274 
 
20,767  
19,832 
Audit related assurance servicesb
 
2,487  
2,553 
Other non-audit services
 
33  
55 
Total services
 
23,287  
22,440 
a Services in relation to the audit of the parent company and the consolidated financial statements. This also includes fees payable for the statutory audits of the financial statements of 
subsidiary companies.
b Includes services that are required by law or regulation to be carried out by an appointed auditor and services that support us to fulfil obligations required by law or regulation. This 
includes fees for the review of interim results, the accrued fee for the audit of the group’s regulatory financial statements and providing comfort letters for bond issuances. 
Fees payable to auditors other than KPMG for audits of certain overseas subsidiaries were £164,000 (FY23: £171,000).
The BT Pension Scheme is an associated pension fund as defined in the Companies (Disclosure of Auditor Remuneration and Liability 
Limitation Agreements) (Amendment) Regulations 2011. In FY24 KPMG LLP received total fees from the BT Pension Scheme of £1.9m 
(FY23: £1.6m) in respect of the following services:
2024
2023
Year ended 31 March
£000
£000
Audit of financial statements of associates
 
1,767  
1,622 
Audit-related assurance services
 
26  
14 
Other non-audit services
 
74  
— 
Total services
 
1,867  
1,636 
9. Specific items
 Material accounting policies that apply to specific items
Our income statement and segmental analysis separately identify trading results on an adjusted basis, being before specific items. The 
directors believe that presentation of the group’s results in this way is relevant to an understanding of the group’s financial performance as 
specific items are those that in management’s judgement need to be disclosed by virtue of their size, nature or incidence. 
This presentation is consistent with the way that financial performance is measured by management and reported to the Board and 
the Executive Committee and assists in providing an additional analysis of our reporting trading results. Specific items may not be 
comparable to similarly titled measures used by other companies.
In determining whether an event or transaction is specific, management considers quantitative as well as qualitative factors. 
Examples of charges or credits meeting the above definition and which have been presented as specific items in the current and/or 
prior years include significant business restructuring programmes such as the current group-wide cost transformation and 
modernisation programme, acquisitions and disposals of businesses and investments, impairment of goodwill, charges or credits 
relating to retrospective regulatory matters, property rationalisation programmes, historical property-related provisions, significant 
out of period contract settlements, net interest on our pension obligation, and the impact of remeasuring deferred tax balances. In 
the event that items meet the criteria, which are applied consistently from year to year, they are treated as specific items. Any 
releases to provisions originally booked as a specific item are also classified as specific. Conversely, when a reversal occurs in relation 
to a prior year item not classified as specific, the reversal is not classified as specific in the current year.
Movements relating to the sports joint venture (Sports JV) with Warner Bros. Discovery (WBD), such as fair value gains or losses on 
the A and C preference shares or impairment charges on the equity-accounted investment are classified as specific. Refer to note 24 
for further detail.
BT Group plc Annual Report 2024
162
Financial statements
Notes to the consolidated financial statements continued
8. Audit, audit related and other non-audit services

2024
2023
Year ended 31 March
£m
£m
Revenue
Retrospective regulatory matters
 
38  
(12) 
Specific revenue
 
38  
(12) 
Operating costs
Restructuring charges
 
388  
300 
BT Sport disposal
 
—  
155 
Sports JV – subsequent movements
 
32  
34 
Other divestment-related items
 
(22)  
2 
Retrospective regulatory matters
 
18  
12 
Historical property-related provisions
 
34  
— 
Specific operating costs before depreciation and amortisation
 
450  
503 
Impairment charges due to property rationalisation
 
11  
65 
Impairment of goodwill
 
488  
— 
Specific operating costs
 
949  
568 
Specific operating loss
 
987  
556 
Net finance expense
Finance expense relating to the BT Sport disposal
 
—  
(13) 
Interest expense on retirement benefit obligation
 
121  
18 
Specific net finance expense
 
121  
5 
Net specific items charge before tax
 
1,108  
561 
Taxation
Tax credit on specific items above
 
(145)  
(308) 
 
(145)  
(308) 
Net specific items charge after tax
 
963  
253 
Retrospective regulatory matters
We recognised net £56m impact in relation to historical regulatory 
matters, with £38m charges recognised in revenue and £18m 
within operating costs (FY23: net impact of £nil). These items 
represent movements in provisions relating to various matters.
Restructuring charges
We have incurred charges of £388m (FY23: £300m) relating to 
projects associated with our group-wide cost transformation and 
modernisation programme. Costs primarily relate to leaver costs, 
consultancy costs, and staff costs associated with colleagues 
working exclusively on programme activity. The net cash cost of 
restructuring activity during the year was £348m (FY23: £326m). 
The programme was first announced in May 2020 and runs until 
the end of FY25. In response to cost inflation, during FY23 we 
revised the gross annualised savings target to £3.0bn (previously 
£2.5bn), with a cost to achieve of £1.6bn (previously £1.3bn). We 
have now achieved our £3bn target 12 months early at a cost to 
achieve of £1.5bn, £0.1bn lower than target (FY23: achieved gross 
annualised savings of £2.1bn and costs of £1.1bn).The cumulative 
cash costs incurred amount to £1.5bn (FY23: £1.1bn).
BT Sport disposal
In the prior year, we completed the disposal of BT Sport operations 
through forming the Sports JV with WBD. We recognised a profit 
on disposal of £28m in specific items, made up of £155m charges 
recognised within operating costs net of £183m tax credits. We 
also recognised a £13m credit within finance costs as specific, 
relating to a foreign exchange hedging arrangement with the 
Sports JV. 
Sports JV subsequent movements
Subsequent to the BT Sport disposal, we have recorded a net fair 
value loss of £22m (FY23: £34m) on the A and C preference shares 
held in the Sports JV (see note 24), and £10m additional net costs 
relating to the transaction.
Other divestment-related items
We recognised a £22m credit (FY23: £2m charge) comprising a 
net £25m gain on disposal from the completed divestments of 
Pelipod Limited, BT Enia S.p.A and certain city fibre networks and 
associated infrastructure assets in Germany; offset by £3m charges 
relating to ongoing divestment activity.
Historical property-related provisions
During FY24 we recognised a provision of £34m as a specific item 
(FY23: nil) in relation to the cost of remediating and rectifying 
asbestos related property issues where we have a present 
obligation to do this.
Impairment charges due to property rationalisation
During FY24, we recognised a £11m impairment charge as specific 
(FY23: £65m), in relation to an ongoing property rationalisation 
programme.
Impairment of goodwill
We have recognised an impairment charge of £488m (FY23: nil) in 
respect of goodwill allocated to our Business cash generating unit. 
See note 13 for more details. 
Interest expense on retirement benefit obligation
During the year we incurred £121m (FY23: £18m) of interest costs 
in relation to our defined benefit pension obligations. 
Tax on specific items
A tax credit of £145m was recognised in relation to specific items 
(FY23: £308m, of which £183m relates to the BT Sport disposal). 
BT Group plc Annual Report 2024
163
Financial statements
9. Specific items continued

 Material accounting policies that apply to taxation
Current income tax is calculated on the basis of the tax laws enacted or substantively enacted at the balance sheet date in the 
countries where the group’s subsidiaries, associates and joint ventures operate and generate taxable income. We evaluate positions 
taken in tax returns where tax regulation is subject to interpretation, and establish provisions if appropriate based on the amounts 
likely to be paid to tax authorities.
Deferred tax is recognised, using the liability method, in respect of temporary differences between the carrying amount of our assets 
and liabilities and their tax base. Deferred tax is determined using tax rates that are expected to apply in the periods in which the 
asset is realised or liability settled, based on tax rates and laws that have been enacted or substantively enacted by the balance sheet 
date.
Deferred and current income tax assets and liabilities are offset when there is a legally enforceable right to offset current tax assets 
and liabilities and when the deferred income tax assets and liabilities relate to income taxes levied by the same taxation authority 
where there is an intention to settle the balances on a net basis. Any remaining deferred tax asset is recognised only when, on the 
basis of all available evidence, it is probable that there will be suitable taxable profits against which the deductible temporary 
difference can be utilised. Deferred tax balances for which there is a right of offset within the same jurisdiction are presented net on 
the face of the group balance sheet as permitted by IAS 12, with the exception of deferred tax related to our pension schemes which 
is disclosed within deferred tax assets.
 Key accounting estimates and significant judgements made in accounting for taxation
We seek to pay tax in accordance with the laws of the countries where we do business. However, in some areas these laws are 
unclear, and it can take many years to agree an outcome with a tax authority or through litigation. We estimate our tax on country-
by-country and issue-by-issue bases. Our key uncertainties are whether our intra-group trading model will be accepted by a 
particular tax authority and whether intra-group payments are subject to withholding taxes. We provide for the predicted outcome 
where an outflow is probable, but the agreed amount can differ materially from our estimates. Approximately 65% by value of the 
provisions are under active tax authority examination and are therefore likely to be re-estimated or resolved in the coming 12 
months. £112m (FY23: £104m) is included in current tax liabilities or offset against current tax assets where netting is appropriate.
We are subject to regular tax authority review, under a downside case an additional amount of £123m could be required to be paid. 
This amount is not provided as we don’t consider this outcome to be probable.
Deciding whether to recognise deferred tax assets is judgemental. We only recognise them when we consider it is probable that they 
can be recovered. In making this judgement we consider evidence such as historical financial performance, future financial plans and 
trends and whether our intra-group pricing model has been agreed by the relevant tax authority.
The value of the group’s income tax assets and liabilities is disclosed on the group balance sheet. The value of the group’s deferred 
tax assets and liabilities is disclosed below.   
Analysis of our taxation expense for the year
2024
2023
Year ended 31 March
£m
£m
United Kingdom
Corporation tax at 25% (FY23: 19%)
 
(10)  
— 
Adjustments in respect of earlier years
 
—  
63 
Non-UK taxation
Current
 
(77)  
(67) 
Adjustments in respect of earlier years
 
(10)  
9 
Total current taxation (expense)
 
(97)  
5 
Deferred taxation
Origination and reversal of temporary differences
 
(280)  
102 
Adjustments in respect of earlier years
 
46  
56 
Remeasurement of temporary differences
 
—  
13 
Total deferred taxation credit (expense)
 
(234)  
171 
Total taxation (expense)
 
(331)  
176 
BT Group plc Annual Report 2024
164
Financial statements
Notes to the consolidated financial statements continued
10. Taxation

Factors affecting our taxation expense for the year
The taxation expense on the profit for the year differs from the amount computed by applying the UK corporation tax rate to the profit 
before taxation as a result of the following factors:
2024
2023
Year ended 31 March
£m
£m
Profit before taxation
 
1,186  
1,729 
Expected taxation expense at UK rate of 25% (FY23: 19%)
 
(297)  
(328) 
Effects of:
(Higher)/lower taxes on non-UK profits
 
25  
— 
Net permanent differences between tax and accountinga
 
(114)  
352 
Adjustments in respect of earlier yearsb
 
40  
126 
Prior year non-UK losses used against current year profits
 
10  
5 
Non-UK losses not recognisedc
 
5  
9 
Re-measurement of deferred tax balances
 
—  
12 
Total taxation credit (expense)
 
(331)  
176 
Exclude specific items (note 9)
 
(145)  
(308) 
Total taxation expense before specific items
 
(476)  
(132) 
a Includes income that is not taxable or UK income taxable at a different rate including the UK patent box incentive of £60m (FY23: £35m), and expenses for which no tax relief is 
received including a loss on goodwill impairment of £122m. In FY23 this included the benefit of the UK super-deduction of £250m and the non-taxable profit on the disposal and 
revaluation of BT Sport of £104m.
b Reflects the differences between initial accounting estimates and tax returns submitted to tax authorities, including the release and establishment of provisions for uncertain tax 
positions.
c Reflects losses made in countries where it has not been considered appropriate to recognise a deferred tax asset, as future taxable profits are not probable.
Tax components of other comprehensive income
2024
2023
Year ended 31 March
Tax credit 
(expense)
£m
Tax credit 
(expense)
£m
Taxation on items that will not be reclassified to the income statement
Pension remeasurements
 
600  
732 
Tax on items that have been or may be reclassified subsequently to the income statement
Exchange differences on translation of foreign operations
 
9  
— 
Fair value movements on cash flow hedges
– net fair value gains or (losses)
 
69  
(90) 
– recognised in income and expense
 
—  
— 
Total tax recognised in other comprehensive income
 
678  
642 
Current tax credita
 
—  
8 
Deferred tax credit (expense) 
 
678  
634 
Total tax recognised in other comprehensive income
 
678  
642 
a Includes £nil (FY23: £nil) relating to cash contributions made to reduce retirement benefit obligations.
Tax (expense) credit recognised directly in equity
2024
2023
Year ended 31 March
£m
£m
Tax (expense) credit relating to share-based payments
 
(12)  
(9) 
BT Group plc Annual Report 2024
165
Financial statements
10. Taxation continued

Deferred taxation
Fixed asset
temporary
differences
Retirement
benefit
obligationsa
Share-
based
payments
Tax
losses
Other
Jurisdictional
offset
Total
£m
£m
£m
£m
£m
£m
£m
At 1 April 2022
 
2,913  
(195)  
(36)  
(857)  
(154)  
—  
1,671 
Expense (credit) recognised in the 
income statement
 
886  
(18)  
(13)  
(1,022)  
(4)  
—  
(171) 
Expense (credit) recognised in other 
comprehensive income
 
—  
(413)  
—  
(311)  
90  
—  
(634) 
Expense (credit) recognised in equity
 
—  
—  
9  
—  
—  
—  
9 
Exchange differences
 
—  
—  
—  
(4)  
(3)  
—  
(7) 
Acquisition of subsidiary
 
—  
—  
—  
—  
2  
—  
2 
Transfer from current tax
 
—  
—  
—  
—  
41  
—  
41 
At 31 March 2023
 
3,799  
(626)  
(40)  
(2,194)  
(28)  
—  
911 
Non-current
Deferred tax asset
 
—  
(626)  
(40)  
(2,194)  
(28)  
2,179  
(709) 
Deferred tax liability
 
3,799  
—  
—  
—  
—  
(2,179)  
1,620 
At 31 March 2023
 
3,799  
(626)  
(40)  
(2,194)  
(28)  
—  
911 
Expense (credit) recognised in the 
income statement
 
782  
(17)  
2  
(454)  
(79)  
—  
234 
Expense (credit) recognised in other 
comprehensive income
 
—  
(325)  
—  
(266)  
(87)  
—  
(678) 
Expense (credit) recognised in equity
 
—  
—  
12  
—  
—  
—  
12 
Exchange differences
 
—  
—  
—  
3  
3  
—  
6 
At 31 March 2024
 
4,581  
(968)  
(26)  
(2,911)  
(191)  
—  
485 
Non-current
Deferred tax asset
 
—  
(968)  
(26)  
(2,911)  
(191)  
3,048  
(1,048) 
Deferred tax liability
 
4,581  
—  
—  
—  
—  
(3,048)  
1,533 
At 31 March 2024
 
4,581  
(968)  
(26)  
(2,911)  
(191)  
—  
485 
a Includes a deferred tax asset of £nil (FY23: £8m) arising on contributions payable to defined contribution pension plans.
The majority of the deferred tax assets and liabilities noted above are anticipated to be realised after more than 12 months.
What factors affect our future tax charges?
We expect a large proportion of our capital spend on fibre rollout to be eligible for full expensing under the UK capital allowances regime, 
which provides 100% tax relief in the year of spend on qualifying assets. These deductions drive a projected UK tax loss and no UK tax 
payments for FY24. The enhanced and accelerated tax deductions arising under the Government’s super-deduction regime for qualifying 
capital spend during FY22 and FY23, together with full expensing in FY24 and pension deficit contribution deductions,  result in c. £11.3bn 
of tax losses expected to be carried forward from FY24, to be utilised against future UK taxable profits. These are represented by a net c. 
£2.8bn deferred tax asset which is disclosed within the £2,911m deferred tax asset relating to tax losses in the table above.
The group is within the scope of the OECD Pillar Two model rules. The UK has enacted Pillar Two legislation which applies for accounting 
periods beginning on or after 1 January 2024. Since the Pillar Two legislation was not effective for the current period, the group has no 
related current tax exposure. Under the legislation, the group is liable to pay a top-up tax for the difference between its Global Anti-Base 
Erosion (GloBE) effective tax rate per jurisdiction and the 15% minimum rate. As the UK rate of corporation tax from FY24 will be 25%, 
and the group’s business is primarily in the UK, the impact of these rules on the group is not expected to be material. 
What are our unrecognised tax losses and other temporary differences?
At 31 March 2024 we had operating losses and other temporary differences carried forward in respect of which no deferred tax assets 
were recognised amounting to £3.7bn (FY23: £3.7bn). Our other temporary differences have no expiry date restrictions. The expiry date 
of operating losses carried forward is dependent upon the tax law of the various territories in which the losses arose. A summary of expiry 
dates for losses in respect of which restrictions apply is set out below:
At 31 March 2024
£m
Expiry
Restricted losses
Europe
 
— 
2025 - 2043
Americas
 
372 
2025 - 2033
Other
 
2 
2025 - 2033
Total restricted losses
 
374 
Unrestricted operating losses
 
3,080 
No expiry
Other temporary differences
 
209 
No expiry
Total
 
3,663 
At 31 March 2024 we had UK capital losses carried forward in respect of which no deferred tax assets were recognised amounting to 
£16.8bn (FY23: £16.8bn). These losses have no expiry date, but we consider the future utilisation of significant amounts of these losses to 
be remote.
BT Group plc Annual Report 2024
166
Financial statements
Notes to the consolidated financial statements continued
10. Taxation continued

At 31 March 2024 the undistributed earnings of non-UK subsidiaries were £2.6bn (FY23: £2.5bn). No deferred tax liabilities have been 
recognised in respect of these unremitted earnings because the group is in a position to control the timing of any dividends from 
subsidiaries and hence any tax consequences that may arise. Under current tax rules, tax of £44m (FY23: £41m) would arise if these 
earnings were to be repatriated to the UK. 
11. Earnings per share
 How is earnings per share calculated?
Basic earnings per share is calculated by dividing the profit after tax attributable to equity shareholders by the weighted average number 
of shares in issue after deducting the own shares held by employee share ownership trusts and treasury shares.
In calculating the diluted earnings per share, share options outstanding and other potential shares have been taken into account where 
the impact of these is dilutive. 
Year ended 31 March
2024
2023
Basic weighted average number of shares (millions)
 
9,823 
 
9,803 
Dilutive shares from share options (millions)
 
39 
 
83 
Dilutive shares from share awards (millions)
 
136 
 
171 
Diluted weighted average number of shares (millions)
 
9,998 
 
10,057 
Basic earnings per share
 
8.7 p  
19.4 p
Diluted earnings per share
 
8.6 p  
18.9 p
The earnings per share calculations are based on profit after tax attributable to equity shareholders of the parent company which excludes 
non-controlling interests. Profit after tax was £855m (FY23: £1,905m) and profit after tax attributable to non-controlling interests was 
£nil (FY23: £4m). Profit attributable to non-controlling interests is not presented separately in the financial statements as it is not 
material. 
12. Dividends
What is the group’s dividend policy?
We have a progressive dividend policy to maintain or grow the dividend each year whilst taking into consideration a number of factors 
including underlying medium-term earnings expectations and levels of business reinvestment. 
What dividends have been paid?
A final dividend of 5.69p per share amounting to approximately £553m is proposed in respect of the year ended 31 March 2024 (FY23: 
final dividend of 5.39p per share amounting to £530m paid in respect of the year ended 31 March 2023). An interim dividend of 2.31p per 
share amounting to £227m was paid on 2 February 2024 (FY23: interim dividend of 2.31p per share amounting to £226m paid). This value 
may differ from the amount shown for equity dividends paid in the group cash flow statement, which represents the actual cash paid in 
relation to dividend cheques that have been presented over the course of the financial year.
2024
2023
Year ended 31 March
pence per share
£m
pence per share
£m
Final dividend in respect of the prior year
 
5.39  
530  
5.39  
527 
Interim dividend in respect of the current year
 
2.31  
227  
2.31  
226 
 
7.70  
757  
7.70  
753 
BT Group plc Annual Report 2024
167
Financial statements
10. Taxation continued

 Material accounting policies that apply to intangible assets
We recognise identifiable intangible assets where we control the asset, it is probable that future economic benefits attributable to 
the asset will flow to the group, and we can reliably measure the cost of the asset. We amortise all intangible assets, other than 
goodwill, over their useful economic life. The method of amortisation reflects the pattern in which the assets are expected to be 
consumed. If the pattern cannot be determined reliably, the straight-line method is used.
Goodwill
Goodwill represents the excess of the cost of an acquisition over the fair value of the group’s share of the identifiable net assets 
(including intangible assets) of the acquired business. Our goodwill impairment policy is set out later in this note.
Acquired intangible assets – customer relationships and brands
Intangible assets such as customer relationships or brands acquired through business combinations are recorded at fair value at the 
date of acquisition and subsequently carried at amortised cost. Assumptions are used in estimating the fair values of these 
relationships or brands and include management’s estimates of revenue and profits to be generated by them.
Telecommunications licences
Licence fees paid to governments, which permit telecommunications activities to be operated for defined periods, are initially 
recorded at cost and amortised from the time the network is available for use to the end of the licence period or where our usage can 
extend beyond the initial licence period, over the period we expect to benefit from the use of the licences, which is typically 20 years. 
Licences acquired through business combinations are recorded at fair value at the date of acquisition and subsequently carried at 
amortised cost. The fair value is based on management’s assumption of future cash flows using market expectations at acquisition 
date.
Computer software
Computer software comprises computer software licences purchased from third parties, and also the cost of internally developed 
software. Computer software licences purchased from third parties are initially recorded at cost. We capitalise costs directly 
associated with the production of internally developed software, including direct and indirect labour costs of development, only 
where it is probable that the software will generate future economic benefits, the cost of the asset can be reliably measured and 
technical feasibility can be demonstrated, in which case it is capitalised as an intangible asset on the balance sheet. Costs which do 
not meet these criteria and research costs are expensed as incurred.
Our development costs which give rise to internally developed software include upgrading the network architecture or functionality 
and developing service platforms aimed at offering new services to our customers. 
Other
Other intangible assets include website development costs and other licences. Items are capitalised at cost and amortised on a 
straight-line basis over their useful economic life or the term of the contract.
Estimated useful economic lives
The estimated useful economic lives assigned to the principal categories of intangible assets are as follows:
– Computer software
2 to 10 years
– Telecommunications licences
2 to 20 years
– Customer relationships and brands
1 to 15 years
Impairment of intangible assets
Intangible assets with finite useful lives are tested for impairment if events or changes in circumstances (assessed at each reporting 
date) indicate that the carrying amount may not be recoverable. When an impairment test is performed, the recoverable amount is 
assessed by reference to the higher of the net present value of the expected future cash flows (value in use) of the relevant cash 
generating unit and the fair value less costs to dispose.
Goodwill is reviewed for impairment at least annually as described below. Impairment losses are recognised in the income statement, 
as a specific item. If a cash generating unit is impaired, impairment losses are allocated firstly against goodwill, and secondly on a 
pro-rata basis against intangible and other assets.
BT Group plc Annual Report 2024
168
Financial statements
Notes to the consolidated financial statements continued
13. Intangible assets

Goodwill
Customer
relationships
and brandsa
Telecoms
licences and otherb
Internally 
developed 
softwarec
Purchased 
softwarec
Total
£m
£m
£m
£m
£m
£m
Cost
At 1 April 2022
 
7,917  
3,383  
3,490  
5,346  
971  
21,107 
Additions
 
—  
—  
—  
815  
203  
1,018 
Disposals and adjustmentsd
 
(21)  
—  
—  
(466)  
151  
(336) 
Transfers
 
—  
—  
—  
30  
(38)  
(8) 
Exchange differences
 
72  
—  
1  
2  
7  
82 
Transfers to assets held for salee
 
(13)  
—  
—  
—  
—  
(13) 
At 31 March 2023
 
7,955  
3,383  
3,491  
5,727  
1,294  
21,850 
Additions
 
—  
—  
—  
732  
206  
938 
Disposals and adjustmentsd
 
(4)  
(1)  
(12)  
(671)  
298  
(390) 
Transfersf
 
—  
—  
—  
217  
(95)  
122 
Exchange differences
 
(29)  
—  
(1)  
(1)  
(5)  
(36) 
At 31 March 2024
 
7,922  
3,382  
3,478  
6,004  
1,698  
22,484 
Accumulated amortisation
At 1 April 2022
 
—  
2,469  
908  
3,595  
326  
7,298 
Amortisation charge for the year
 
—  
231  
185  
596  
153  
1,165 
Impairment
 
—  
—  
—  
—  
—  
— 
Disposals and adjustmentsd
 
—  
—  
1  
(389)  
79  
(309) 
Transfers
 
—  
—  
—  
(56)  
56  
— 
Exchange differences
 
—  
—  
1  
1  
7  
9 
Transfers to assets held for sale
 
—  
—  
—  
—  
—  
— 
At 31 March 2023
 
—  
2,700  
1,095  
3,747  
621  
8,163 
Amortisation charge for the year
 
—  
231  
185  
762  
70  
1,248 
Impairment
 
488  
—  
—  
—  
—  
488 
Disposals and adjustmentsd
 
—  
—  
(13)  
(462)  
96  
(379) 
Transfersf
 
—  
—  
—  
(41)  
90  
49 
Exchange differences
 
—  
—  
(1)  
—  
(4)  
(5) 
At 31 March 2024
 
488  
2,931  
1,266  
4,006  
873  
9,564 
Carrying amount
At 31 March 2023
 
7,955  
683  
2,396  
1,980  
673  
13,687 
At 31 March 2024
 
7,434  
451  
2,212  
1,998  
825  
12,920 
a Customer relationships and brands relate to customer relationships recognised on acquisition of EE.
b Telecoms licences and other primarily represents spectrum licences. These include 2100 MHz licence with book value of £593m (FY23: £643m), 1800 MHz with book value of 
£544m (FY23: £590m), 700Mhz with book value of £266m (FY23: £281m), 3400 MHz with book value of £226m (FY23: £242m) and 2600 MHz with book value of £185m (FY23: 
£206m). Spectrum licences are being amortised over a period between 14 and 20 years.
c Includes a carrying amount of £623m (FY23: £1,125m) in respect of assets under construction, which are not yet amortised.
d Disposals and adjustments include the removal of assets from the group’s fixed asset registers following disposals and the identification of fully amortised assets (including £0.3bn in 
FY24 through operation of the group’s annual asset verification exercise). 
e For a breakdown of assets held for sale see note 22.
f
During FY24, assets with cost of £122m and accumulated depreciation of £49m were reclassified from property, plant and equipment to intangible assets following review of asset 
registers. 
BT Group plc Annual Report 2024
169
Financial statements
13. Intangible assets continued

Impairment of goodwill
 Material accounting policies that apply to impairment of goodwill
We perform an annual goodwill impairment review. 
Goodwill recognised in a business combination does not generate cash flows independently of other assets or groups of assets. As a 
result, the recoverable amount, being the value in use, is determined at a cash generating unit (CGU) level. These CGUs represent 
the smallest identifiable groups of assets that generate cash inflows that are largely independent of the cash inflows from other 
groups of assets. Our CGUs are deemed to be Consumer and Business.
We allocate goodwill to each of the CGUs that we expect to benefit from the business combination. Each CGU to which goodwill is 
allocated represents the lowest level within the group at which the goodwill is monitored for internal management purposes.
The value in use of each CGU is determined using risk-adjusted cash flow projections derived from financial plans approved by the 
Board covering a five-year period. They reflect management’s risk-adjusted expectations of revenue, EBITDA growth, capital 
expenditure, working capital and operating cash flows, based on past experience and future expectations of business performance. 
Cash flows beyond the fifth year have been extrapolated using perpetuity growth rates.
 Significant judgements and critical accounting estimates made in reviewing goodwill for 
impairment
Determining our CGUs
The determination of our CGUs is judgemental. The identification of CGUs involves an assessment of whether the asset or group of 
assets generate largely independent cash inflows. This involves consideration of how our core assets are operated and whether these 
generate independent revenue streams. 
In FY23 our CGUs were aligned with the Consumer, Enterprise and Global customer-facing units in existence at the time. From 
1 April 2023 the Enterprise and Global units are managed and reported as a single combined unit, Business. Financial information 
is provided to the Executive Committee on a consolidated basis only, and there have been material changes to the structure and 
organisation of the combined Business unit following the merger. 
During FY24 we have reviewed the identification of our CGUs in light of the creation of Business. We concluded that the Enterprise 
and Global CGUs have been replaced with a single Business CGU. In reaching this conclusion we considered the way in which the 
combined unit is monitored and the degree of integration within the combined unit, specifically in relation to revenue streams and its 
asset base. This conclusion also reflects the fact that the cash flows of the legacy Enterprise and Global units are no longer 
independent and it is no longer possible to report the performance of these units on an individual basis. 
Accordingly, our CGUs are Consumer and Business from 1 April 2023, aligned with the corresponding CFUs and operating segments 
(note 4). 
Estimating value in use
Our value in use calculations require estimates in relation to uncertain items, including management’s expectations of future revenue 
growth, operating costs, profit margins, operating cash flows and the discount rate for each CGU. Future cash flows used in the value 
in use calculations are on a nominal basis and based on risk-adjusted projections derived from the  latest Board-approved five-year 
financial plans, representing management's best risk-adjusted estimate of future growth. This includes the direct and indirect 
impacts of inflation and associated mitigations. Expectations about future growth reflect the expectations of growth in the markets 
to which the CGU relates and consideration of the overall variability relating to individual assumptions at the unit level. The future 
cash flows are discounted using a pre-tax nominal discount rate that reflects current market assessments of the time value of money. 
The discount rate used in each CGU is adjusted for the risk specific to the asset, including the countries in which cash flow will be 
generated, for which the future cash flow estimates have not been adjusted.  
Estimating terminal growth 
A long term growth rate into perpetuity is applied immediately at the end of the five year forecast period. We calculate this for each 
CGU as the lower of the nominal GDP growth rate forecasts and the long-term compound annual growth rate as estimated by 
management. Long-term compound annual growth rates may be lower than forecast nominal GDP growth rates due to market-
specific factors including inflation expectations, the regulatory environment and competition intensity. 
We tested our goodwill for impairment as at 31 March 2024. The carrying value of goodwill and the key assumptions used in performing 
the annual impairment assessment and sensitivities are disclosed below.
BT Group plc Annual Report 2024
170
Financial statements
Notes to the consolidated financial statements continued
13. Intangible assets continued

Consumer
Legacy Enterprise
Legacy Global
Business
Total
Cost
£m
£m
£m
£m
£m
At 1 April 2022
 
3,900  
3,573  
444  
—  
7,917 
Transfer
 
—  
—  
—  
—  
— 
Acquisitions and disposals
 
(26)  
4  
1  
—  
(21) 
Exchange differences
 
—  
4  
68  
—  
72 
Transfer to assets held for sale
 
—  
(4)  
(9)  
—  
(13) 
At 31 March 2023
 
3,874  
3,577  
504  
—  
7,955 
Transfer
 
—  
(3,577)  
(504)  
4,081  
— 
Impairment
 
—  
—  
—  
(488)  
(488) 
Acquisitions and disposals
 
—  
—  
—  
(4)  
(4) 
Exchange differences
 
—  
—  
—  
(29)  
(29) 
Transfer to assets held for sale
 
—  
—  
—  
—  
— 
At 31 March 2024
 
3,874  
—  
—  
3,560  
7,434 
Of the £4.1bn attributable to the Business CGU at 31 March 2023, £2.6bn relates to the acquisition of EE in 2016 with the rest relating to 
historical small acquisitions. 
Outcome of our annual impairment review
Our FY24 impairment testing exercise concluded that there is significant headroom in our Consumer CGU, consistent with FY23. 
The carrying value of the Business CGU exceeded its value in use by £488m. We have therefore booked an impairment charge equivalent 
to this amount in the income statement, presented as a specific item (note 9). No impairment was recognised in FY23. 
Historical trends including the transition from legacy products indicate risk within forecasts which we have made appropriate adjustment 
for in line with IAS 36, so as to arrive at a risk adjusted estimate of future economic conditions which reflects long-term viability and 
trading risks inherent in delivering against the group’s strategic pillars.
At the same time, to acknowledge this risk we have reduced terminal growth rate applied to cash flows when calculating the terminal 
value. We have also excluded uncommitted restructuring costs and benefits including those that relate to the group-wide restructuring 
programmes. The combined impact of these adjustments has led to a value in use for IAS 36 impairment testing purposes that is indicative 
of an impairment. Calculating the value in use has involved the application of assumptions and estimates that have had a material impact 
on the impairment charge recognised. Management judge that the Board-approved forecasts used to calculate value in use support the 
carrying amount of the Business CGU as at 31 March 2024. We consider below the impact of reasonably possible alternatives in the next 
12 months. 
What discount rate have we used? 
The pre-tax discount rates applied to the cash flow forecasts are derived from our post-tax weighted average cost of capital. The 
assumptions used in the calculation of the group’s weighted average cost of capital are benchmarked to externally available data. The 
pre-tax discount rate used in performing the value in use calculation for Consumer was 9.25% in FY24 and 9.4% in FY23. We have used a 
slightly higher rate of 9.27% for Business. This reflects the higher risk countries in which it operates, which in FY23 were part of the Global 
CGU. In FY23 we used a discount rate of 9.4% for Enterprise and 9.7% for Global, again reflecting the higher risk from countries in which it 
operates. The reduction in discount rates in FY24 reflects that the cash flows, rather than the discount rate, have been risk adjusted.
What growth rates have we used? 
The perpetuity growth rates are determined based on the forecast market growth rates of the regions in which the CGU operates, and 
reflect an assessment of the long-term growth prospects of that market. The growth rates have been benchmarked against external data 
for the relevant markets and analysts’ expectations. None of the growth rates applied exceed the expected average long-term growth 
rates for those markets or sectors. In FY24 we have used a perpetuity growth rate of 1.0% for Consumer and 0.7% for the Business CGU. In 
FY23 the perpetuity growth rate was 2.0% for Enterprise and Consumer, and 2.4% for Global. 
Key assumptions applied to testing goodwill allocated to the Business CGU 
Key assumptions that value in use is most sensitive to are EBITDA growth over the 5-year forecast period; the long term growth rate for 
the terminal period; and the weighted average cost of capital used to discount cash flows. 
– Our value in use assumes risk-adjusted EBITDA compound annual growth of 0.7% over the 5-year forecast period. The growth rate is 
the projected adjusted EBITDA growth rate on the cash flow forecasts used in our goodwill impairment model and reflect the growth 
and maturity of the industry we operate in and historical trends. Compound annual growth rates are risk-adjusted to  the compound 
annual growth rates used in our Board-approved forecasts.
– Application of the terminal growth rate of 0.7%, equivalent to compound annual growth within the terminal period, is viewed as a key 
assumption with c.75% of the value in use derived from terminal cash flows. 
– Value in use is sensitive to the weighted average cost of capital used to discount future cash flows.
The table below shows the sensitivity of the £488m impairment recognised to reasonably possible changes in key assumptions:
Low scenario
High scenario
EBITDA compound annual growth rate +/- 1%
(£1,260m) more impairment
£374m less impairment
Long term growth rate +/- 0.7%
(£478m) more impairment
£488m less impairment
Weighted average cost of capital +/- 1%
(£865m) more impairment
£488m less impairment
BT Group plc Annual Report 2024
171
Financial statements
13. Intangible assets continued

Other sensitivities applicable to the Business CGU 
Applying a severe but plausible downside scenario, reflecting a plan that we are highly confident will be achieved or exceeded, based on 
the same risk population would result in a further impairment charge of £2,430m in addition to the £488m recognised. Management 
consider that it is reasonably possible to expect that actual future cash flows will outperform the risk-adjusted cash flows modelled for the 
purpose of testing goodwill impairment. A less conservative view of risks and opportunities in the base case of our forecast would result in 
headroom of approximately £2,083m rather than the impairment charge booked.
14. Property, plant and equipment
 Material accounting policies that apply to property, plant and equipment
Our property, plant and equipment is included at historical cost, net of accumulated depreciation, government grants and any 
impairment charges. Property, plant and equipment acquired through business combinations is initially recorded at fair value and 
subsequently accounted for on the same basis as our existing assets. We derecognise items of property, plant and equipment on 
disposal or when no future economic benefits are expected to arise from the continued use of the asset. The difference between the 
sale proceeds and the net book value at the date of disposal is recognised in operating costs in the income statement.
Included within the cost of network infrastructure and equipment are direct and indirect labour costs, materials and directly 
attributable overheads.
We depreciate property, plant and equipment on a straight-line basis from the time the asset is available for use, to write off the 
asset’s cost over the estimated useful life taking into account any expected residual value. Freehold land is not depreciated.
Estimated useful economic lives
The estimated useful lives assigned to principal categories of assets are as follows:
Land and buildings
– Freehold buildings
14 to 50 years
– Short-term leasehold improvements
Shorter of 10 years or lease term
– Leasehold land and buildings
Shorter of unexpired portion of lease or 40 years
Network infrastructure
Transmission equipment
– Duct
40 years
– Cable
3 to 25 years
– Fibre
5 to 20 years
Exchange equipment
2 to 13 years
Other network equipment
2 to 20 years
Other assets
– Motor vehicles
2 to 10 years
– Computers and office equipment
3 to 7 years
Residual values and useful lives are reassessed annually and, if necessary, changes are recognised prospectively.
Network share assets
Certain assets have been contributed to a network share arrangement by both EE and Hutchison 3G UK Limited, with legal title 
remaining with the contributor. This is considered to be a reciprocal arrangement. Our share of the assets on acquisition of EE was 
recognised at fair value within tangible assets, and depreciated in line with policy. Subsequent additions are recorded at cost. 
Impairment of property, plant and equipment
We test property, plant and equipment for impairment if events or changes in circumstances (assessed at each reporting date) 
indicate that the carrying amount may not be recoverable. When an impairment test is performed, we assess the recoverable 
amount by reference to the higher of the net present value of the expected future cash flows (value in use) of the relevant asset and 
the fair value less costs to dispose. If it is not possible to determine the recoverable amount for the individual asset then we assess 
impairment by reference to the relevant cash generating unit as described in note 13.
BT Group plc Annual Report 2024
172
Financial statements
Notes to the consolidated financial statements continued
13. Intangible assets continued

Building Digital UK (BDUK) government grants
We receive government grants in relation to BDUK and other rural superfast broadband contracts. Where we have achieved certain 
service levels, or delivered the network more efficiently than anticipated, we have an obligation to either re-invest or repay grant 
funding. Where this is the case, we recognise deferred income in respect of the funding that will be re-invested or repaid, and make a 
corresponding adjustment to the carrying amount of the related property, plant and equipment.
Assessing the timing of whether and when we change the estimated take-up assumption is judgemental as it involves considering 
information which is not always observable. Our consideration on whether and when to change the base case assumption is 
dependent on our expectation of the long-term take-up trend.
Our assessment of how much grant income to defer includes consideration of the difference between the take-up percentage 
agreed with the local authority and the likelihood of actual take-up. The value of the government grants deferred is disclosed in 
note 17.
Land and
buildings
Network infrastructure
Othera
Assets under
construction
Total
Held by 
Openreach
Held by
other units
£m
£m
£m
£m
£m
£m
Cost
At 1 April 2022
 
1,022  
31,276  
24,439  
1,444  
1,446  
59,627 
Additionsb
 
7  
—  
129  
7  
3,947  
4,090 
Transfers
 
89  
2,617  
913  
211  
(3,822)  
8 
Disposals and adjustmentsc
 
31  
(118)  
(183)  
(33)  
(70)  
(373) 
Transfer to assets held for saled
 
—  
—  
(108)  
(13)  
—  
(121) 
Exchange differences
 
16  
—  
99  
6  
1  
122 
At 31 March 2023
 
1,165  
33,775  
25,289  
1,622  
1,502  
63,353 
Additionsb
 
6  
1  
73  
12  
3,851  
3,943 
Transferse
 
85  
2,562  
906  
279  
(3,954)  
(122) 
Disposals and adjustmentsc
 
(95)  
(208)  
(2,198)  
(162)  
137  
(2,526) 
Transfer to assets held for saled
 
—  
—  
—  
—  
—  
— 
Exchange differences
 
(11)  
—  
(66)  
(5)  
(1)  
(83) 
At 31 March 2024
 
1,150  
36,130  
24,004  
1,746  
1,535  
64,565 
Accumulated depreciation
At 1 April 2022
 
621  
17,476  
20,050  
1,025  
—  
39,172 
Depreciation charge for the year
 
50  
1,466  
1,144  
218  
—  
2,878 
Impairment
 
—  
—  
—  
11  
—  
11 
Transfers
 
—  
195  
(192)  
(4)  
—  
(1) 
Disposals and adjustmentsc
 
32  
(139)  
(133)  
(36)  
—  
(276) 
Transfer to assets held for saled
 
—  
—  
(106)  
(11)  
—  
(117) 
Exchange differences
 
13  
—  
91  
7  
—  
111 
At 31 March 2023
 
716  
18,998  
20,854  
1,210  
—  
41,778 
Depreciation charge for the year
 
55  
1,489  
1,085  
263  
—  
2,892 
Impairment
 
—  
78  
—  
—  
30  
108 
Transferse
 
—  
—  
(49)  
—  
—  
(49) 
Disposals and adjustmentsc
 
(30)  
(134)  
(2,222)  
(174)  
—  
(2,560) 
Transfer to assets held for saled
 
—  
—  
—  
—  
—  
— 
Exchange differences
 
(9)  
—  
(61)  
(5)  
—  
(75) 
At 31 March 2024
 
732  
20,431  
19,607  
1,294  
30  
42,094 
Carrying amount
At 31 March 2023
 
449  
14,777  
4,435  
412  
1,502  
21,575 
Engineering stores
 
—  
—  
—  
—  
92  
92 
Total at 31 March 2023
 
449  
14,777  
4,435  
412  
1,594  
21,667 
At 31 March 2024
 
418  
15,699  
4,397  
452  
1,505  
22,471 
Engineering stores
 
—  
—  
—  
—  
91  
91 
Total at 31 March 2024
 
418  
15,699  
4,397  
452  
1,596  
22,562 
a Other mainly comprises motor vehicles, computers and fixtures and fittings.
b  Net of government grants of £91m (FY23: £150m). 
c Disposals and adjustments include the removal of assets from the group’s fixed asset registers following disposals and the identification of fully depreciated assets (including £2.2bn 
in FY24 through operation of the group’s annual asset verification exercise). They also include adjustments between gross cost and accumulated depreciation following review of 
fixed asset registers, and adjustments resulting from changes in assumptions used in calculating lease-end obligations where the corresponding asset is capitalised.
d Transfers to assets held for sale are detailed in note 22.
e During FY24, assets with cost of £122m and accumulated depreciation of £49m were reclassified from property, plant and equipment to intangible assets following review of asset 
registers. 
BT Group plc Annual Report 2024
173
Financial statements
14. Property, plant and equipment continued

Included within the disclosure are assets used in arrangements which represent core business activities for the group and which meet the 
definition of operating leases:
– £15,699m (FY23: £14,777m) of the carrying amount of the network infrastructure asset class represents Openreach’s network 
infrastructure. The majority of the associated assets are used to deliver fixed-line telecommunications services that have been assessed 
as containing operating leases, to both internal and external communications providers. Network infrastructure held by Openreach is 
presented separately in the table above; however it is not practicable to separate out infrastructure not used in operating lease 
arrangements. 
– Other assets includes devices with a carrying amount of £160m (FY23: £163m) that are made available to retail customers under 
arrangements that contain operating leases. These are not presented separately in the table above as they are not material relative to 
the group’s overall asset base.
The carrying amount of land and buildings, including leasehold improvements, comprised:
2024
2023
At 31 March
£m
£m
Freehold
 
71  
80 
Leasehold
 
347  
369 
Total land and buildings
 
418  
449 
Network infrastructure
Some of our network assets are jointly controlled by EE Limited with Hutchison 3G UK Limited. These relate to shared 3G network and 
certain elements of network for 4G rural sites. The net book value of the group’s share of assets controlled by its joint operation MBNL is 
£759m (FY23: £721m) and is recorded within network infrastructure.
Within network infrastructure are assets with a net book value of £11.5bn (FY23: £10.9bn) which have useful economic lives of more than 
18 years. 
BT Tower
In FY24 we agreed to the sale of the BT Tower for headline consideration of £275m, as part of the simplification of the group’s property 
portfolio. 
The carrying amount of the BT Tower asset is £4m at 31 March 2024. It is not considered to meet the IFRS 5 criteria for classification as 
held for sale at the reporting date, reflecting the extent of decommissioning work needed to provide vacant possession of the site. 
The useful economic lives of assets associated with the BT Tower have been reassessed in light of the anticipated disposal in FY30. 
 Significant judgements made in accounting for the BT Tower sale
Exchange of contracts in respect of the BT Tower sale with MCR Hotels occurred during FY24, with transfer of legal title anticipated 
to take place in a three year window between 2028 and 2031 subject to achieving vacant possession of the site. We will continue to 
enjoy exclusive rights to occupy and access the site prior to completion. The delay between exchange and completion reflects the 
extensive work required to decommission the site. 
We have exercised significant judgement in concluding that control over BT Tower passes to the buyer at the point of completion 
rather than exchange. In doing so we performed a detailed assessment of the restrictions placed on BT’s use of the asset in the 
period following exchange, as well as the transaction pricing structure, and concluded that they were insufficient to represent a 
transfer to the buyer of sufficiently all the risks and rewards associated with ownership. We placed particular weight on the fact that 
legal title to the site does not transfer to the buyer until the point of completion. Had we concluded that control had passed on 
exchange of contracts in FY24, the transaction would have been treated as a sale and leaseback with profit on disposal recognised in 
the period and associated derecognition of the BT Tower asset and accounting for the leaseback.
Low carbon fleet
As reported in our TCFD statement on page 78, we’re working hard and investing to convert the majority of our fleet to electric or zero 
emission vehicles by the end of FY31. This plan does not trigger a significant impairment of fleet assets as substantially all non-electric 
vehicles held by the group at 31 March 2024 will be fully depreciated ahead of FY31.
BT Group plc Annual Report 2024
174
Financial statements
Notes to the consolidated financial statements continued
14. Property, plant and equipment continued

 Material accounting policies that apply to leases
Identifying whether a lease exists
At inception of a contract, we determine whether the contract is, or contains, a lease. A lease exists if the contract conveys the right 
to control the use of an identified asset, for a period of time, in exchange for consideration. In making this assessment, we consider 
whether: 
– The contract involves the use of an identified asset, either explicitly or implicitly. The asset must be physically distinct or represent 
substantially all the capacity of a physically distinct asset. Assets that a supplier has a substantive right to substitute are not 
considered distinct. 
– The lessee (either the group, or the group’s customers) has the right to obtain substantially all the economic benefits from the use 
of the asset throughout the period of use; and
– The lessee has the right to direct the use of the asset, in other words, has the decision-making rights that are most relevant to 
changing how and for what purpose the asset is used. 
Where practicable, and by class of underlying asset, we have elected to account for leases containing a lease component and one or 
more non-lease components as a single lease component. Where this election has been taken, it has been applied to the entire asset.
Lessee accounting
We recognise a lease liability and right-of-use asset at the commencement of the lease. 
Lease liabilities are initially measured at the present value of lease payments that are due over the lease term, discounted using the 
group’s incremental borrowing rate. 
The lease term is the non-cancellable period of the lease adjusted for the impact of any extension options that we are reasonably 
certain that the lessee will exercise, or termination options that we are reasonably certain that the lessee will not exercise.
The incremental borrowing rate is the rate that we would have to pay for a loan of a similar term, and with similar security, to obtain 
an asset of similar value. 
Lease payments include: 
– fixed payments
– variable lease payments that depend on an index or rate
– amounts expected to be paid under residual value guarantees
– the exercise price of any purchase options that we are reasonably certain to exercise
– payments due over optional renewal periods where we are reasonably certain to renew
– penalties for early termination of the lease where we are reasonably certain to terminate early
Lease liabilities are subsequently measured at amortised cost using the effective interest method. They are remeasured if there is a 
change in future lease payments, including changes in the index or rate used to determine those payments, or the amount we expect 
to be payable under a residual value guarantee. 
We also remeasure lease liabilities where the lease term changes. This occurs when the non-cancellable period of the lease changes, 
or on occurrence of a significant event or change in circumstances within the control of the lessee and which changes our initial 
assessment in regard to whether the lessee is reasonably certain to exercise extension options or not to exercise termination options. 
Where the lease term changes we remeasure the lease liability using the group’s incremental borrowing rate at the date of 
reassessment. Where a significant event or change in circumstances does not occur, the lease term remains unchanged and the 
carrying amounts of the lease liability and associated right-of-use asset will decline over time.
Right-of-use assets are initially measured at the initial amount of the corresponding lease liabilities, adjusted for any prepaid lease 
payments, plus any initial direct costs incurred and an estimate of any decommissioning costs that have been recognised as 
provisions, less any lease incentives received. They are subsequently depreciated using the straight-line method to the earlier of the 
end of the useful life of the asset or the end of the lease term. Right-of-use assets are tested for impairment following the policy set 
out in note 14 and are adjusted for any remeasurement of lease liabilities. 
We have elected not to recognise lease liabilities and right-of-use assets for short-term leases that have a lease term of 12 months 
or less, and leases of low-value assets with a purchase price under £5,000. We recognise  payments for these items as an expense on 
a straight-line basis over the lease term. 
Any variable lease payments that do not depend on an index or rate, such as usage-based payments, are recognised as an expense in 
the period to which the variability relates.
BT Group plc Annual Report 2024
175
Financial statements
15. Leases

Lessor accounting
At inception or on modification of a contract that contains a lease component, we allocate the consideration in the contract to each 
lease component on the basis of their relative stand-alone prices.
When we act as a lessor, we determine at lease inception whether each lease is a finance lease or an operating lease.
To classify each lease, we make an overall assessment of whether the lease transfers substantially all the risks and rewards incidental 
to ownership of the underlying asset. If this is the case, then the lease is a finance lease; if not, then it is an operating lease. As part of 
this assessment, we consider certain indicators such as whether the lease is for the major part of the economic life of the asset.
When we are an intermediate lessor, we account for our interests in the headlease and the sublease separately. We assess the lease 
classification of a sublease with reference to the right-of-use asset arising from the headlease, not with reference to the underlying 
asset. If a headlease is a short-term lease to which we apply the exemption described above, then we classify the sublease as an 
operating lease.
If an arrangement contains lease and non-lease components, then we apply IFRS 15 to allocate the consideration in the contract. 
We apply the derecognition and impairment requirements in IFRS 9 to the net investment in the lease. We further regularly review 
estimated unguaranteed residual values used in calculating the gross investment in the lease.
We recognise lease payments received under operating leases as income on a straight-line basis over the lease term as part of ‘other 
revenue’.
 Significant judgements made in accounting for leases
The lease term is a key determinant of the size of the lease liability and right-of-use asset recognised where the group acts as lessee; 
and the deferral period for any upfront connection charges where the group acts as lessor. Determining the lease term requires 
judgement to evaluate whether we are reasonably certain the lessee will exercise extension options or will not exercise termination 
options. Key facts and circumstances that create an incentive to exercise those options are considered; these include: 
– Our anticipated operational, retail and office property requirements in the mid and long term.
– The availability of suitable alternative sites.
– Costs or penalties associated with exiting lease arrangements relative to the benefits to be gained, including costs of removing 
leasehold improvements or relocating, and indirect costs such as disruption to business.
– Significant investments in leased sites, in particular those with useful lives beyond the lease term.
– Costs associated with extending lease arrangements including rent increases during secondary lease periods.
Our definition of ‘reasonable certainty’, and therefore the lease term, will often align with the judgements made in our medium-term 
plan, in particular for leases of non-specialised property and equipment on rolling (or ‘evergreen’) arrangements that continue until 
terminated and which can be exited without significant penalty. 
Following initial determination of the lease term, we exercise judgement in evaluating whether events or changes in circumstances 
are sufficiently significant to change the initial assessment of whether we are reasonably certain the lessee will exercise extension 
options or will not exercise termination options; and in the subsequent reassessment of the lease term.
Key judgements exercised in setting the lease term
The quantum of the lease liability and right-of-use asset currently recognised on our balance sheet is most significantly affected by 
the judgement exercised in setting the lease term for the arrangement under which the bulk of our operational UK property estate is 
held. Setting the lease term for our leased cell sites has also involved the use of judgement, albeit to a lesser degree. 
BT Group plc Annual Report 2024
176
Financial statements
Notes to the consolidated financial statements continued
15. Leases continued

UK operational property portfolio
Substantially all of our leased property estate is held under an arrangement which can be terminated in 2031, at which point we may 
either vacate some or all properties or purchase the entire estate. If neither option is taken the lease continues to the next unilaterally 
available break point in 2041. The lease liability recognised for the arrangement reflects a lease end date of 2031. 
On initial recognition we concluded that, although the majority of these properties are expected to be needed on a long-term basis, 
we couldn’t be reasonably certain that we wouldn’t exercise the termination option or that we would exercise the purchase option. In 
coming to this conclusion, we had due regard to material sub-lease arrangements relating to the estate. 
As time progresses our assessment may change; if this happens, we will remeasure the lease liability and right-of-use asset to reflect 
either the rentals due for any properties we will continue to occupy, or the cost of purchasing the estate, using an updated discount 
rate. There would be no overall impact on net assets.
If the assessment were to change at the balance sheet date of 31 March 2024:
– Exercising the purchase option would lead to an estimated increase in the lease liability and right-of-use asset of between £3bn 
and £5bn.
– Continuing to lease the estate beyond 2031 until the next available break in 2041 would lead to an estimated increase in the lease 
liability and right-of-use asset of between £1bn and £2bn.
Our assessment will be directly linked to future strategic decisions, which will be resolved at some time prior to 2031, around the 
development of the fixed network and the associated rationalisation of our exchange estate. The breadth of the ranges reflects the 
significant uncertainty around key variables used to determine cash outflows, especially future inflation and which properties the 
group will be able to exit prior to or in 2031. 
Estimates are based on discounted cash outflows and do not reflect the likely and significant impact of cash inflows generated from 
the disposal, repurposing or subleasing of properties retained post-2031.
We are permitted to hand a limited number of properties back to the lessor prior to 2031. On initial adoption of IFRS 16 we were not 
reasonably certain which properties would be handed back and as such the lease term did not reflect the exercise of these options. 
Subsequently we exercise judgement in identifying significant events that trigger reassessment of our initial conclusion. We exercise 
similar judgement in identifying events triggering reassessment of whether we are reasonably certain we will not exercise termination 
options associated with other leased properties. 
In doing so we consider decisions associated with our ongoing workplace rationalisation programme, in particular decisions to exit a 
particular location or lease an alternative property. Generally we remain reasonably certain that we will not exercise a termination 
option until implementation of the associated business plan has progressed to a stage that we are committed to exiting the property. 
At that point we reassess the lease term by reference to the time we expect to remain in occupation of the property and any notice 
period associated with exercise of the option.
Cell sites
Most of the liability recognised in respect of leased cell sites relates to multi-site arrangements with commercial providers. The 
fixed-term nature of these arrangements means it has not been necessary to exercise significant judgement when determining the 
lease term. Where the arrangements offer extension options we have been required to conclude whether the options are reasonably 
certain to be exercised. Although the balance sheet could be materially affected by the conclusion reached in regard to these 
options, we have not been required to exercise a significant degree of judgement in arriving at the lease term having regard to the 
period of time covered by the options, the difficulty in predicting the group’s long-term network requirements, and the relatively 
high threshold that ‘reasonably certain' represents.
A smaller proportion of the cell site liability relates to arrangements with individual landlords which are either rolling or can be exited 
with notice. When setting the initial lease term for these arrangements we exercised significant judgement in establishing the period 
that we are reasonably certain to require use of the site. We broadly aligned lease terms with our medium-term planning horizon 
after assessing the relative strengths of the following factors:
– Long-term economic incentives to remain on sites including existing capital improvements;
– A need to maintain flexibility in our ability to develop and manage our network infrastructure to react quickly to technological 
developments and evolving capacity requirements; and
– Incentives to renegotiate arrangements in the medium term to gain more security over sites to support future capital investment.
Although significant judgement has been exercised in determining the lease term, reaching an alternative conclusion would not have 
a material impact on the balance sheet having regard to the most feasible alternative lease terms. 
Subsequently, we consider key events that trigger reassessment of lease terms to be developments which resolve uncertainty 
around our economic incentive to remain on individual sites in the long term. These are primarily lease renegotiations and significant 
capital investments, for example that associated with our 5G rollout and other capital refresh programmes. 
BT Group plc Annual Report 2024
177
Financial statements
15. Leases continued

Right-of-use assets
Most of our right-of-use assets are associated with our leased property portfolio, specifically our office, retail and exchange estate. We 
also lease a significant proportion of our network infrastructure, including mobile cell and switch sites.
Land and buildings
Network 
infrastructure
Motor vehicles
Other
Total
£m
£m
£m
£m
£m
At 1 April 2022
 
3,941  
110  
369  
9  
4,429 
Additionsa
 
203  
16  
150  
2  
371 
Depreciation charge for the yearb
 
(521)  
(32)  
(131)  
(5)  
(689) 
Impairmentb
 
(75)  
—  
—  
—  
(75) 
Transfer to assets held for sale
 
(3)  
—  
—  
—  
(3) 
Other movementsc
 
(49)  
1  
(3)  
(1)  
(52) 
At 31 March 2023
 
3,496  
95  
385  
5  
3,981 
Additionsa
 
271  
40  
179  
1  
491 
Depreciation charge for the yearb
 
(493)  
(33)  
(121)  
(5)  
(652) 
Impairmentb
 
(10)  
—  
—  
—  
(10) 
Other movementsc
 
(108)  
(4)  
(56)  
—  
(168) 
At 31 March 2024
 
3,156  
98  
387  
1  
3,642 
a  Additions comprise increases to right-of-use assets as a result of entering into new leases, and upwards remeasurement of existing leases arising from lease extensions or 
reassessments and increases to lease payments. 
b Impairment charges relates primarily to the early exit of leases as a result of ongoing property rationalisation activity.
c Other movements primarily relate to terminated leases and downwards remeasurements of right-of-use assets arising from reductions or reassessments of lease terms and 
decreases in lease payments.
Lease liabilities
Lease liabilities recognised are as follows: 
2024
2023
Year ended 31 March
£m
£m
Current
 
766  
800 
Non-current
 
4,189  
4,559 
 
4,955  
5,359 
The following amounts relating to the group’s obligations under lease arrangements were recognised in the income statement in the year:
– Interest expense of £134m (FY23: £133m) on lease liabilities.
– Variable lease payments of £39m (FY23: £38m) which are not dependent on an index or rate and which have not been included in the 
measurement of lease liabilities.
Expenses relating to leases of low-value assets and short-term leases for which no right-of-use asset or lease liability has been recognised 
were not material. 
The total cash outflow for leases in the year was £882m (FY23: £860m). Our cash flow statement and normalised free cash flow 
reconciliation present £748m (FY23: £727m) of the cash outflow as relating to the principal element of lease liability payments, with the 
remaining balance of £134m (FY23: £133m) presented within interest paid. 
Note 28 presents a maturity analysis of the payments due over the remaining lease term for lease liabilities currently recognised on the 
balance sheet. This analysis only includes payments to be made over the reasonably certain lease term. Cash outflows are likely to exceed 
these amounts as payments will be made on optional periods that we do not currently consider to be reasonably certain, and in respect of 
leases entered into in future periods. 
BT Group plc Annual Report 2024
178
Financial statements
Notes to the consolidated financial statements continued
15. Leases continued

Other information relating to leases
At 31 March 2024 the group was committed to future minimum lease payments of £55m (FY23: £145m) in respect of leases which have 
not yet commenced and for which no lease liability has been recognised. 
The following table analyses cash payments to be received across the remaining term of operating lease arrangements where BT is lessor:
To be recognised as 
revenue (note 5)a
To be recognised as other 
operating income (note 6)
Total
At 31 March 2024
£m
£m
£m
Less than one year
 
431  
17  
448 
One to two years
 
117  
11  
128 
Two to three years
 
41  
11  
52 
Three to four years
 
10  
9  
19 
Four to five years
 
9  
3  
12 
More than five years
 
—  
5  
5 
Total undiscounted lease payments
 
608  
56  
664 
At 31 March 2023
Less than one year
 
416  
19  
435 
One to two years
 
131  
15  
146 
Two to three years
 
46  
15  
61 
Three to four years
 
13  
14  
27 
Four to five years
 
10  
13  
23 
More than five years
 
—  
20  
20 
Total undiscounted lease payments
 
616  
96  
712 
a Future operating lease income to be recognised as revenue primarily relates to income from Openreach's fixed access subscription services which meet the definition of leases under 
IFRS 16 and which typically are expected to have a lease period terms of one year or less.  
16. Trade and other receivables
 Material accounting policies that apply to trade and other receivables
Trade receivables are recognised where the right to receive payment from customers is conditional only on the passage of time. We 
initially recognise trade and other receivables at fair value, which is usually the original invoiced amount. They are subsequently 
carried at amortised cost using the effective interest method. The carrying amount of these balances approximates to fair value due 
to the short maturity of amounts receivable.
We provide services to consumer and business customers, mainly on credit terms. We know that certain debts due to us will not be 
paid through the default of a small number of our customers. Because of this, we recognise an allowance for doubtful debts on initial 
recognition of receivables, which is deducted from the gross carrying amount of the receivable. The allowance is calculated by 
reference to credit losses expected to be incurred over the lifetime of the receivable. In estimating a loss allowance we consider 
historical experience and informed credit assessment alongside other factors such as the current state of the economy and particular 
industry issues. We consider reasonable and supportable information that is relevant and available without undue cost or effort. 
Once recognised, trade receivables are continuously monitored and updated. Allowances are based on our historical loss 
experiences for the relevant aged category as well as forward-looking information and general economic conditions. Allowances are 
calculated by individual CFUs in order to reflect the specific nature of the customers relevant to that CFU. 
The group utilises factoring arrangements for selected trade receivables. Trade receivables that are subject to debt factoring 
arrangements are derecognised if they meet the conditions for derecognition detailed in IFRS 9 ‘Financial instruments’ and the 
related cash flows received are presented as cash flows from operating activities.
Contingent assets such as any insurance recoveries which we expect to recoup, have not been recognised in the financial statements 
as these are only recognised within trade and other receivables when their receipt is virtually certain. 
BT Group plc Annual Report 2024
179
Financial statements
15. Leases continued

2024
2023
At 31 March
£m
£m
Current
Trade receivables
 
1,899  
1,395 
Prepayments
 
586  
545 
Accrued income
 
162  
158 
Deferred contract costs
 
383  
369 
Finance lease receivables
 
31  
29 
Amounts due from joint ventures
 
163  
268 
Other assetsa
 
341  
296 
 
3,565  
3,060 
Non-current
Deferred contract costs
 
229  
211 
Finance lease receivables
 
107  
98 
Other assetsa
 
305  
194 
 
641  
503 
a Other assets comprise Flex Pay receivables, prepayments and £57m (FY23: £70m) of deferred cash consideration mainly relating to the disposal of BT Sport, see note 22.
Amounts due from joint ventures relates to a sterling Revolving Credit Facility (RCF) provided to the Sports JV, see note 30. The expected 
loss provision is immaterial.
Trade receivables are stated after deducting allowances for doubtful debts, as follows:
2024
2023
£m
£m
At 1 April
 
168  
223 
Expense
 
129  
84 
Utilised
 
(127)  
(142) 
Exchange differences
 
(1)  
3 
At 31 March
 
169  
168 
The expected credit loss allowance for trade receivables was determined as follows:
Trade
receivables
specifically
impaired net
of provision
Past due and not specifically impaired
Not past due
Between
0 and 3
months
Between
3 and 6
months
Between
6 and 12
months
Over 12
months
Total
At 31 March
£m
£m
£m
£m
£m
£m
£m
2024
Expected loss rate %
 1% 
 50% 
 8% 
 28% 
 47% 
 65% 
 8% 
Gross carrying amount
 
1,448 
 
4 
 
357 
 
81 
 
64 
 
114 
 
2,068 
Loss allowance
 
(11) 
 
(2) 
 
(29) 
 
(23) 
 
(30) 
 
(74) 
 
(169) 
Net carrying amount
 
1,437 
 
2 
 
328 
 
58 
 
34 
 
40 
 
1,899 
2023
Expected loss rate %
 1% 
 75% 
 10% 
 46% 
 41% 
 52% 
 11% 
Gross carrying amount
 
1,030 
 
20 
 
265 
 
48 
 
59 
 
141 
 
1,563 
Loss allowance
 
(8) 
 
(15) 
 
(26) 
 
(22) 
 
(24) 
 
(73) 
 
(168) 
Net carrying amount
 
1,022 
 
5 
 
239 
 
26 
 
35 
 
68 
 
1,395 
Trade receivables not past due and accrued income are analysed below by CFU.
Trade receivables not past due
Accrued income
2024
2023
2024
2023
At 31 March
£m
£m
£m
£m
Consumer
 
375  
309 
 
81  
82 
Businessa
 
900  
713 
 
4  
2 
Openreach
 
161  
— 
 
75  
70 
Other
 
1  
— 
 
2  
4 
Total
 
1,437  
1,022 
 
162  
158 
a  Comparatives for the year ended 31 March 2023 have been re-presented for the impact of the creation of our Business customer-facing unit, formed through the merger of our 
Enterprise and Global units, see note 1.
Given the broad and varied nature of our customer base, the analysis of trade receivables not past due and accrued income by CFU is 
considered the most appropriate disclosure of credit concentrations.
BT Group plc Annual Report 2024
180
Financial statements
Notes to the consolidated financial statements continued
16. Trade and other receivables continued

Deferred contract costs
 Material accounting policies that apply to deferred contract costs
We capitalise certain costs associated with the acquisition and fulfilment of contracts with customers and amortise them over the 
period that we transfer the associated services.
Connection costs are deferred as contract fulfilment costs because they allow satisfaction of the associated connection performance 
obligation and are considered recoverable. Sales commissions and other third party contract acquisition costs are capitalised as 
costs to acquire a contract unless the associated contract term is less than 12 months, in which case they are expensed as incurred. 
Capitalised costs are amortised over the minimum contract term. A portfolio approach is used to determine contract term. 
Where the initial set-up, transition and transformation phases of long-term contractual arrangements represent distinct 
performance obligations, costs in delivering these services are expensed as incurred. Where these services are not distinct 
performance obligations, we capitalise eligible costs as a cost of fulfilling the related service. Capitalised costs are amortised on a 
straight-line basis over the remaining contract term, unless the pattern of service delivery indicates a more appropriate profile. To be 
eligible for capitalisation, costs must be directly attributable to specific contracts, relate to future activity, and generate future 
economic benefits. Capitalised costs are regularly assessed for recoverability. 
The following table shows the movement on deferred costs:
Deferred connection 
costs
Deferred contract 
acquisition costs – 
commissions
Deferred contract 
acquisition costs – 
dealer incentives
Transition and 
transformation
Total
£m
£m
£m
£m
£m
At 1 April 2022
 
24  
124  
324  
90  
562 
Additions
 
15  
100  
285  
70  
470 
Amortisation
 
(15)  
(94)  
(276)  
(67)  
(452) 
Impairment
 
—  
(1)  
(1)  
—  
(2) 
Other
 
(2)  
2  
(2)  
4  
2 
At 31 March 2023
 
22  
131  
330  
97  
580 
Additions
 
10  
134  
315  
57  
516 
Amortisation
 
(11)  
(118)  
(292)  
(56)  
(477) 
Impairment
 
—  
(2)  
(7)  
—  
(9) 
Other
 
(8)  
2  
3  
5  
2 
At 31 March 2024
 
13  
147  
349  
103  
612 
BT Group plc Annual Report 2024
181
Financial statements
16. Trade and other receivables continued

 Material accounting policies that apply to trade and other payables
We initially recognise trade and other payables at fair value, which is usually the original invoiced amount. We subsequently carry 
them at amortised cost using the effective interest method. 
We use a supply chain financing programme to extend payment terms with a limited number of suppliers to a more typical payment 
term. We also use a separate supply chain financing programme to allow suppliers to receive funding earlier than the invoice due 
date. We assess these arrangements against indicators to assess if debts which vendors have sold to the funder under the supplier 
financing schemes continue to meet the definition of trade payables or should be classified as borrowings. At 31 March 2024 under 
the terms of the arrangement the funder's payment to the supplier does not legally extinguish our obligation to the supplier so it 
remains within trade and other payables. Cash flows only occur when the trade payable is extinguished and are therefore presented 
in cash flows from operating activities.
2024
2023
At 31 March
£m
£m
Current
Trade payables
 
4,119  
4,196 
Other taxation and social security
 
544  
581 
Minimum guarantee with sports joint venturea
 
194  
195 
Accrued expenses
 
543  
458 
Deferred incomeb
 
355  
532 
Other payablesc
 
572  
602 
 
6,327  
6,564 
Non-current
Minimum guarantee with sports joint venturea
 
271  
465 
Deferred incomeb
 
342  
403 
Other payables
 
24  
52 
 
637  
920 
a Liability recognised on the minimum revenue guarantee in BT’s distribution agreement with the sports joint venture (see note 22). Movement in the liability driven by £211m  
payments made during the year less £16m finance cost recorded from unwinding the impact of discounting.
b Deferred income includes £106m (FY23: £258m) current and £122m (FY23: £169m) non-current liabilities relating to Building Digital UK, for which grants received by the group 
may be subject to re-investment or repayment depending on the level of take-up.
c Includes £41m relating to an estimate of customer refunds, refer to note 5.
Current trade and other payables at 31 March 2024 include:
– £101m (31 March 2023: £348m) of trade payables that have been factored in a supply chain financing programme. The facility size of 
£350m remains consistent with prior periods. These programmes are used with a limited number of suppliers with short payment terms 
to extend them to a more typical payment term.
– £224m (31 March 2023: £169m) of trade payables in a separate supply chain financing programme that allows suppliers the 
opportunity to receive funding earlier than the invoice due date. Financial institutions are used to support this programme but we 
continue to recognise the underlying payables as we continue to cash settle the supplier invoices in accordance with their terms.
BT Group plc Annual Report 2024
182
Financial statements
Notes to the consolidated financial statements continued 
17. Trade and other payables

Our provisions principally relate to obligations arising from property rationalisation programmes, restructuring programmes, asset 
retirement obligations, network assets, third party claims, litigation and regulatory risks. Contingent liabilities primarily arise from litigation 
and regulatory matters that are not sufficiently certain to meet the criteria for recognition as provisions. 
 Material accounting policies that apply to provisions & contingent liabilities
We recognise provisions when the group has a present legal or constructive obligation as a result of past events, it is probable that an 
outflow of resources will be required to settle the obligation and the amount can be reliably estimated. 
Where these criteria are not met we disclose a contingent liability if the group has a possible obligation, or has a present obligation 
with an outflow that is not probable or which cannot be reliably estimated. 
Provisions are determined by discounting the expected future cash flows at a nominal pre-tax rate that reflects current market 
assessments of the time value of money and the risks specific to the liability. Cash flows are adjusted for the effect of inflation where 
appropriate. 
 Significant judgements made in identifying contingent liabilities
Contingent liabilities are not recognised as liabilities on our balance sheet. By their nature, contingencies will be resolved only when 
one or more uncertain future events occur or fail to occur. We assess the likelihood that a potential claim or liability will arise and also 
quantify the possible range of financial outcomes where this can be reasonably determined. 
In identifying contingent liabilities we make key judgements in relation to applicable law and any historical and pending court rulings, 
and the likelihood, timing and cost of resolution. 
Establishing contingent liabilities associated with litigation brought against the group may involve the use of significant judgements 
and assumptions, in particular around the ability to form a reliable estimate of any probable outflow. We provide further information 
in relation to specific matters in the ‘contingent liabilities' section below.
 Key accounting estimates and significant judgements made in accounting for provisions
We exercise judgement in determining the quantum of all provisions to be recognised. Our assessment includes consideration of 
whether we have a present obligation, whether payment is probable and if so whether the amount can be estimated reliably. 
When measuring provisions we reflect the impact of inflation as appropriate, particularly in relation to our property, asset retirement 
obligation and third party claims provisions. Although this involves a degree of estimation, it does not represent a significant source 
of estimation uncertainty having regard to the quantum of the balances in question and the anticipated timing of outflows. 
Property provisions relate to obligations arising in relation to our property portfolio, in particular costs to restore leased properties on 
vacation where this is required under the lease agreement. In measuring property provisions, we have made estimates of the costs 
associated with the restoration of properties by reference to any relevant guidance such as rate cards. Cash outflows occur as and 
when properties are vacated and the obligations are settled. 
Asset retirement obligations (AROs) relate to obligations to dismantle equipment and restore network sites on vacation of the site. 
The provision represents the group’s best estimate of the costs to dismantle equipment and restore the sites. Obligations are settled 
as and when sites are vacated and the timing is largely influenced by the group’s network strategy. 
Our regulatory provision represents our best estimate of the cost to settle our present obligation in relation to historical regulatory 
matters. The charge/credit for the year represents the outcome of management’s re-assessment of the estimates and regulatory 
risks across a range of issues, including price and service issues. The prices at which certain services are charged are regulated and 
may be subject to retrospective adjustment by regulators. When estimating the likely value of regulatory risk we make key 
judgements, including in regard to interpreting Ofcom regulations and past and current claims. The precise outcome of each matter 
depends on whether it becomes an active issue, and the extent to which negotiation or regulatory and compliance decisions will 
result in financial settlement. The ultimate liability may vary from the amounts provided and will be dependent upon the eventual 
outcome of any settlement.
Litigation provisions represent the best estimate to settle present obligations recognised in respect of claims brought against the 
group. The estimate reflects the specific facts and circumstances of each individual matter and any relevant external advice 
received. Provisions recognised are inherently judgemental and could change over time as matters progress.
Third party claims provisions (previously described as insurance provisions) represent our exposure to claims from third parties, with 
latent disease claims from former colleagues and motor vehicle claims making up the majority of the balance. We engage an 
independent actuary to provide an estimate of the most likely outcomes in respect of latent disease and third party motor vehicle 
accident claims, and our in-house insurance teams review our exposure to other risks. 
Other provisions do not include any individually material provisions.
For all risks, the ultimate liability may vary materially from the amounts provided and will be dependent upon the eventual outcome 
of any settlement.
BT Group plc Annual Report 2024
183
Financial statements
18. Provisions & contingent liabilities

Property
Network
ARO
Regulatory
Litigation
Third party 
claims
Other
Total
£m
£m
£m
£m
£m
£m
£m
At 1 April 2022
 
142  
181  
65  
85  
92  
108  
673 
Additions
 
43  
—  
16  
6  
35  
15  
115 
Unwind of discount
 
1  
3  
—  
—  
—  
—  
4 
Utilised
 
(8)  
(4)  
(1)  
(41)  
(30)  
(7)  
(91) 
Released
 
(37)  
(87)  
(16)  
(9)  
(43)  
(42)  
(234) 
Transfersa
 
—  
—  
4  
—  
132  
(11)  
125 
Exchange differences
 
1  
—  
—  
3  
1  
1  
6 
At 31 March 2023
 
142  
93  
68  
44  
187  
64  
598 
Additions
 
42  
42  
72  
—  
73  
9  
238 
Unwind of discount
 
1  
4  
—  
—  
1  
—  
6 
Utilised
 
(15)  
(6)  
(37)  
(1)  
(75)  
(3)  
(137) 
Released
 
(17)  
—  
(17)  
—  
(32)  
(3)  
(69) 
Transfersa
 
4  
—  
—  
—  
—  
10  
14 
Exchange differences
 
(1)  
—  
—  
—  
—  
—  
(1) 
At 31 March 2024
 
156  
133  
86  
43  
154  
77  
649 
a Transfers relate to the reclassification of balances previously presented in other payables (note 17) following reassessment of the level of certainty over the timing and amount of any 
outflow of resources. 
2024
2023
At 31 March
£m
£m
Analysed as:
Current
 
238  
229 
Non-current
 
411  
369 
 
649  
598 
Contingent liabilities and legal proceedings 
In the ordinary course of business, we are periodically notified of actual or threatened litigation, and regulatory and compliance matters 
and investigations. We have disclosed below a number of such matters including any matters where we believe a material adverse impact 
on the operations or financial condition of the group is possible and the likelihood of a material outflow of resources is more than remote.
Where the outflow of resources is considered probable, and a reasonable estimate can be made of the amount of that obligation, a 
provision is recognised for these amounts and reflected in the table above. Where an outflow is not probable but is possible, or a 
reasonable estimate of the obligation cannot be made, a contingent liability exists.
In respect of each of the claims below, the nature and progression of such proceedings and investigations can make it difficult to predict 
the impact they will have on the group. There are many reasons why we cannot make these assessments with certainty, including, among 
others, that they are in early stages, no damages or remedies have been specified, and/or the often slow pace of litigation.
Class action claim – landline only services
In January 2021, Justin Le Patourel, represented by law firm Mishcon de Reya applied to the Competition Appeal Tribunal to bring a 
proposed class action claim for damages they estimated at £608m (inclusive of compound interest) or £589m (inclusive of simple 
interest) alleging anti-competitive behaviour through excessive pricing by BT to customers with certain residential landline services. 
Ofcom considered this topic in 2017. At that time, Ofcom’s final statement made no finding of excessive pricing or breach of competition 
law more generally but we implemented a voluntary commitment to reduce prices for customers that have a BT landline only and not to 
increase those prices beyond inflation (CPI). In September 2021 the Competition Appeal Tribunal certified the claim to proceed to a 
substantive trial on an opt-out basis (class members are automatically included in the claim unless they choose to opt-out). In July 2023 
Justin Le Patourel amended his claim seeking increased damages estimated at £1,338m (inclusive of compound interest) or £1,309m 
(inclusive of simple interest), later revised to £1,307m (inclusive of compound interest) or £1,278m (inclusive of simple interest). A 
hearing took place between January and March 2024 and we are awaiting judgment. At the reporting date we are not aware of any 
evidence to indicate that a present obligation exists such that any amount should be provided for.
Class action claim – combined mobile and handset services
In November 2023, Justin Gutmann, represented by law firm Charles Lyndon applied to the Competition Appeal Tribunal to bring a 
proposed class action claim for damages estimated at £1.1bn (inclusive of simple interest) on behalf of customers who purchased 
combined handset and airtime contracts who are outside their minimum contract terms but who continue to pay the same price as during 
their minimum contract terms. The claim alleges this approach was an anti-competitive abuse of a dominant position. Similar claims have 
also been brought against Vodafone, Three and O2 with the total damages claimed £3.285bn (inclusive of simple interest). At the 
reporting date we are not aware of any evidence to indicate that a present obligation exists such that any amount should be provided for. 
Class actions must be certified by the Competition Appeal Tribunal at a Collective Proceedings Order (CPO) hearing before proceeding to 
a substantive trial. A first case management conference to determine next procedural steps is scheduled for 23 May 2024. If the class 
action is certified the substantive trial will not conclude during FY25. BT intends to defend itself vigorously.
Italian business
Milan Public Prosecutor prosecutions: In FY20 proceedings were initiated against BT Italia for certain potential offences, namely the 
charge of having adopted, from 2011 to 2016, an inadequate management and control organisation model for the purposes of Articles 5 
and 25 of Legislative Decree 231/2001. BT Italia disputed this and maintained in a defence brief filed in April 2019 that: (a) BT Italia did 
not gain any interest or benefit from the conduct in question; and (b) in any event, it had a sufficient organisational, management and 
BT Group plc Annual Report 2024
184
Financial statements
Notes to the consolidated financial statements continued
18. Provisions & contingent liabilities continued

audit model that was circumvented/overridden by individuals acting in their own self-interest. The trial commenced on 26 January 2021. 
On 23 April 2021, the Court allowed some parties to be joined to the criminal proceedings as civil parties (‘parte civile’) – a procedural 
feature of the Italian criminal law system. These claims were directed at certain individual defendants (which include former BT/ BT Italia 
employees). Those parties successfully joined BT Italia as a respondent to their civil claims (‘responsabile civile’) on the basis that it is 
vicariously responsible for the individuals’ wrongdoing. 
The first instance phase of the trial has now concluded with the Court handing down its decision on 25 January 2024. The Court convicted 
certain individuals (including certain former BT Italia employees) for manipulation of BT Italia’s financial statements for the financial year 
ending 31 March 2016 and for fraud against an Italian company, Sed Multitel S.r.l. The Court dismissed all charges that had been brought 
against BT Italia but ordered that BT Italia indemnify certain individual minority shareholders in the company and Sed Multitel for their 
losses. The Court has not quantified the indemnification amount, such that the indemnified parties must now seek to recover these 
amounts from BT Italia by agreement or separate civil proceedings. The quantum of those claims, if they are pursued successfully, is not 
anticipated to be material. 
Accounting misstatement claims: a law firm acting on behalf of a group of investors has made claims under s.90A of the Financial Services 
& Markets Act 2000, alleging that untrue or misleading statements were made in relation to the historical irregular accounting practices in 
BT’s Italian business (which have been the subject of previous disclosures). No value is stated and the matter is in the early stages. As 
mentioned in our earlier reports, the accounting issues in Italy have previously been the subject of class actions in the US that were 
dismissed by the US courts.
Phones 4U
Since 2015 the administrators of Phones 4U Limited have made allegations that EE and other mobile network operators colluded to 
procure Phones 4U’s insolvency. Legal proceedings for an unquantified amount were issued in December 2018 by the administrators. The 
trial on the question of liability/breach ran from May to July 2022. In November 2023 the High Court dismissed Phones 4U’s claim in its 
entirety. Phones 4U has subsequently appealed that judgment to the Court of Appeal and a hearing is expected in May 2025. We continue 
to dispute these allegations vigorously.
UK Competition and Markets Authority (CMA) investigation
On 12 July 2022 the CMA opened a competition law investigation into BT and other companies involved in the purchase of freelance 
services for the production and broadcasting of sports content in the UK. The investigation is focused on BT Sport. In February 2023, the 
CMA extended its investigation to include suspected breaches of competition law in relation to the employment of staff supporting the 
production and broadcasting of sports content in the UK however in March 2024 the CMA confirmed this limb of its investigation would 
not be progressed. The CMA has said no assumption should be made at this stage that competition law has been infringed. BT is 
cooperating with the investigation.
19. Retirement benefit plans
Background to BT Group’s pension plans
The group has both Defined Benefit and Defined Contribution retirement benefit plans. The group’s main plans are in the UK:
– The BT Pension Scheme (BTPS) is the largest UK Defined Benefit plan sponsored by BT Group, constituting 97% of BT Group’s IAS 19 
liability. It was closed to future benefit accrual in 2018 for the majority of members, and has 55,000 deferred members and 210,000 
pensioners. All BTPS members receive pension benefits at retirement based on salary and years of service; some members also receive 
a lump sum payment at retirement. Increases for the majority of benefits are linked to either the Retail Price Index (RPI) or the 
Consumer Price Index (CPI). 
– The EE Pension Scheme (EEPS) has a Defined Benefit section that was closed to future benefit accrual in 2014 and a Defined 
Contribution section which was closed to future accrual in July 2023. The Defined Benefit section constitutes 2% of BT Group’s IAS 19 
liability.
– The BT Retirement Saving Scheme (BTRSS) is a Defined Contribution, contract-based, plan operated by Standard Life which new UK 
employees join. There are around 67,000 employees currently contributing to the BTRSS.
The group also has retirement arrangements around the world in line with local markets and culture; the principal ones being in the 
Netherlands and Germany.
 Types of retirement benefit plans
Defined Benefit (DB) plans
DB plan benefits are determined by the plan rules, typically dependent on factors such as years of service and pensionable pay, but 
not on the value of actual contributions made by the group or members. The group is exposed to investment and other experience 
risks and may need to make additional contributions where it is estimated that the benefits will not be met from assets held, regular 
contributions and expected investment income.
The net defined benefit liability, or deficit, is the present value of all expected future benefit cash flows to be paid by each plan, 
calculated using the projected unit credit method by professionally qualified actuaries (also known as the Defined Benefit 
Obligation, DBO or liabilities) less the fair value of the plan assets. A net defined benefit asset, or surplus, occurs when the fair value 
of assets exceeds the liabilities.
Defined Contribution (DC) plans
DC plan benefits are linked to the value of each member’s fund, which is based on contributions paid and the performance of each 
individual’s chosen investments. The group has no exposure to investment and other experience risks (including longevity).
BT Group plc Annual Report 2024
185
Financial statements
18. Provisions & contingent liabilities continued

Amounts in the financial statements
Group income statement
The expense arising from the group’s retirement benefit arrangements as recognised in the group income statement is shown below.
2024
2023
Year ended 31 March
£m
£m
Recognised in the income statement before specific items (note 6)
– Service cost:
– DB plans
 
12  
17 
– DC plans
 
541  
537 
– Past service cost/(credit)
 
—  
(2) 
– Administration expenses and PPF levy
 
29  
38 
Subtotal
 
582  
590 
Recognised in the income statement as specific items (note 9)
– Costs to close BTPS and provide transition paymentsa for affected employees
 
—  
13 
– Interest on pensions deficit 
 
121  
18 
Subtotal
 
121  
31 
Total recognised in the income statement
 
703  
621 
a All employees impacted by the closure of the BTPS were eligible for transition payments from the date of closure into their BTRSS pot for a period linked to the employee’s age. 
Group balance sheet
The net defined benefit liability in respect of defined benefit plans reported in the group balance sheet is set out below. Plans in surplus 
are presented within non-current assets and plans in deficit within non-current liabilities.
2024
2023
At 31 March
Assets
£m
Liabilities
£m
Surplus/
(Deficit)a
£m
Assets
£m
Liabilities
£m
Surplus/
(Deficit)a
£m
Recognised in non-current liabilities
BTPS
 
35,391  
(40,038)  
(4,647)  
38,673  
(41,575)  
(2,902) 
Unfunded plans
 
—  
(88)  
(88)  
—  
(92)  
(92) 
Other funded plans
 
33  
(180)  
(147)  
65  
(210)  
(145) 
Sub-total
 
35,424  
(40,306)  
(4,882)  
38,738  
(41,877)  
(3,139) 
Recognised in non-current assets
EEPS
 
769  
(710)  
59 
 
749  
(713)  
36 
Funded plansa
 
361  
(350)  
11 
 
321  
(305)  
16 
Sub-total
 
1,130  
(1,060)  
70 
 
1,070  
(1,018)  
52 
Total
 
36,554  
(41,366)  
(4,812)  
39,808  
(42,895)  
(3,087) 
a Figures shown net of a £4m adjustment in relation to IFRIC 14. With the exception of some of the group's smaller plans, the group  is not required to limit any pension surplus or 
recognise additional pension liabilities in individual plans as economic benefits are available in the form of either future refunds or reductions to future contributions. For example, a 
refund of surplus is available following the gradual settlement of the liabilities over time when there are no members remaining in the BTPS or EEPS. 
The table below shows the group’s defined benefit liability net of tax.
2024
2023
At 31 March
£m
£m
Balance sheet position (net of tax)
Surplus/(deficit)
 
(4,812)  
(3,087) 
Deferred tax asset (note 10)
 
968  
618 
Total (net of tax)
 
(3,844)  
(2,469) 
BT Group plc Annual Report 2024
186
Financial statements
Notes to the consolidated financial statements continued
19. Retirement benefit plans continued

Movements in defined benefit plan assets and liabilities
The table below shows the movements in the defined benefit plan assets and liabilities and shows where they are reflected in the financial 
statements.
Assets
Liabilities
Deficit
£m
£m
£m
At 31 March 2022
 
54,937  
(56,080)  
(1,143) 
Service cost (including administration expenses and PPF levy)
 
(38)  
(17)  
(55) 
Past service credit
 
—  
2  
2 
Interest on net pension deficit
 
1,480  
(1,498)  
(18) 
Included in the group income statement
 
(71) 
Return on plan assets below the amount included in the group income statement
 
(14,911)  
—  
(14,911) 
Actuarial gain arising from changes in financial assumptions
 
—  
12,279  
12,279 
Actuarial gain arising from changes in demographic assumptions
 
—  
891  
891 
Actuarial (loss) arising from experience adjustmentsa
 
—  
(1,135)  
(1,135) 
Included in the group statement of comprehensive income
 
(2,876) 
Regular contributions by employer
 
22  
—  
22 
Deficit contributions by employer
 
994  
—  
994 
Included in the group cash flow statement
 
1,016 
Contributions by employees
 
1  
(1)  
— 
Benefits paid
 
(2,686)  
2,686  
— 
Other (e.g. foreign exchange)
 
9  
(22)  
(13) 
Other movements
 
(13) 
At 31 March 2023
 
39,808  
(42,895)  
(3,087) 
Service cost (including administration expenses and PPF levy)
 
(29)  
(12)  
(41) 
Past service credit
 
—  
—  
— 
Interest on net pension deficit
 
1,886  
(2,007)  
(121) 
Included in the group income statement
 
(162) 
Return on plan assets below the amount included in the group income statement
 
(3,140)  
—  
(3,140) 
Actuarial gain arising from changes in financial assumptions
 
—  
563  
563 
Actuarial gain arising from changes in demographic assumptions
 
—  
652  
652 
Actuarial (loss) arising from experience adjustmentsa
 
—  
(519)  
(519) 
Included in the group statement of comprehensive income
 
(2,444) 
Regular contributions by employer
 
55  
—  
55 
Deficit contributions by employer
 
823  
—  
823 
Included in the group cash flow statement
 
878 
Contributions by employees
 
—  
—  
— 
Benefits paid
 
(2,840)  
2,840  
— 
Other (e.g. foreign exchange)
 
(9)  
12  
3 
Other movements
 
3 
At 31 March 2024
 
36,554  
(41,366)  
(4,812) 
a  Primarily reflects the impact on the liabilities of actual inflation being higher than assumed at the prior reporting date, which has been broadly offset by increases to inflation-linked 
assets from higher inflation.
How is the BTPS governed and managed?
BT Pension Scheme Trustees Limited (the Trustee) has been appointed by BT Group as an independent trustee to administer and manage 
the BTPS on behalf of the members in accordance with the terms of the BTPS Trust Deed and Rules and relevant legislation (principally 
the Pensions Acts of 1993, 1995, 2004 and 2021). The Trustee’s key powers include setting the investment strategy of BTPS (after 
consultation with BT Group) and agreeing with BT Group the actuarial assumptions to be used when assessing the BTPS funding position 
and the resulting contributions that will be paid.
There are nine Trustee directors, all of whom are appointed by BT Group, as illustrated below. Trustee directors are usually appointed for a 
three-year term but are then eligible for re-appointment.
Chair of the Trustee directors
Member nominated Trustee directors
Employer nominated Trustee directors
Appointed by BT after consultation 
with, and with the agreement of, 
the relevant trade unions.
Appointed by BT based on 
nominations by trade unions.
Appointed by BT. Two normally hold senior 
positions within the group and two normally 
hold (or have held) senior positions in 
commerce or industry.
BT Group plc Annual Report 2024
187
Financial statements
19. Retirement benefit plans continued

BTPS IAS 19 assets
 Critical accounting estimates and significant judgements made when valuing the BTPS assets
Under IAS 19, plan assets are measured at fair value at the balance sheet date and include quoted and unquoted investments. 
Valuation of main quoted investments
– Equities listed on recognised stock exchanges are valued at closing bid prices.
– Bonds that are regularly traded are valued using broker quotes, based on sale/bid prices.
– Exchange traded derivative contracts are valued based on closing bid prices.
Valuation of main unquoted investments
A portion of unquoted investments are valued based on inputs that are not directly observable, which require more judgement. The 
assumptions used in valuing unquoted investments are affected by market conditions. 
– Equities are valued using the International Private Equity and Venture Capital (IPEVC) guidelines where the most significant 
assumptions are the discount rate and earnings assumptions.
– Property investments are valued on the basis of open market value by an independent valuer using RICS guidelines. The significant 
assumptions used in the valuation are rental yields and occupancy rates.
– Bonds, including those issued by BT Group, that are not regularly traded are valued by an independent valuer using pricing models 
making assumptions for credit risk, market risk and market yield curves.
– Holdings in investment funds are typically valued at the Net Asset Value provided by the fund administrator or investment 
manager. The significant assumption used in the valuation is the Net Asset Value.
– Infrastructure investments are valued by an independent valuer using a model-based valuation such as a discounted cash flow 
approach, or at the price of recent market transactions if they represent fair value. Where a discounted cash flow model is used, 
the significant assumptions used in the valuation are the discount rate and the expected cash flows.
– Over the counter derivatives are valued by an independent valuer using cash flows discounted at market rates. The significant 
assumptions used in the valuation are the yield curves and cost of carry.
– The BTPS entered into a longevity insurance contract in 2014, and a second in August 2023. The two longevity insurance contracts 
are valued by discounting the fixed cash flows payable by the BTPS and the floating cash flows payable by the insurers under the 
contracts (projected by an actuary, consistent with the terms of the contracts). The significant assumptions used to value the 
assets are the discount rate (set as a margin above a risk-free rate to reflect credit and liquidity risk) and the mortality 
assumptions. 
£5.7bn of unquoted investments that are formally valued periodically by the investment manager have a latest valuation that 
precedes the balance sheet date. These assets consist of: £2.4bn non-core credit; £1.0bn mature infrastructure; £1.2bn private 
equity; £0.9bn secure income assets; and £0.2bn property. These valuations have been adjusted for cash movements between the 
previous valuation date and 31 March 2024. The valuation approach and inputs for these investments would only be approximately 
updated where there were indications of significant movements, for example implied by public market indicators. No such 
adjustment was required at 31 March 2024. 
Asset-Backed Funding (ABF) arrangement
The ABF arrangement, issued to the BTPS in May 2021, has a fair value of £1.2bn at 31 March 2024 (FY23: £1.3bn) calculated as the 
present value of the future stream of payments, allowing for the probability of the BTPS becoming fully funded and therefore the 
payments to the BTPS ending early. It is not recognised as a pension asset when measuring the group’s IAS 19 net defined benefit 
liability as it is a non-transferable financial instrument issued by the group.
How are the BTPS assets invested?
The Trustee regularly reviews the allocation of assets between different investment classes, taking into account current market conditions 
and trends. The allocations reflect the Trustee’s views on a range of areas, including: i) the balance between seeking returns and incurring 
risk; ii) the extent to which the assets should be allocated to match movements in the liabilities due to changes in interest rates, inflation 
and/or longevity (i.e. liability-driven investments, or LDI); iii) the extent to which the assets should provide cash flows to meet expected 
payments to beneficiaries; and iv) liquidity needed to meet benefit payments and collateral requirements for derivatives contracts. 
Financial derivatives (e.g. swaps) are used to reduce the mismatch between movements in the liabilities and the assets from changes in 
interest rates, inflation, longevity, and exchange rates. This provides greater stability in the funding position, and therefore the deficit 
contributions that may be required from BT Group. The sensitivity chart on page 194 shows how the use of some of these derivatives 
adjusts outcomes for the BTPS. While the use of derivatives reduces funding risk, it increases the BTPS’s liquidity requirements which is 
factored into the overall investment strategy. Following the impact of the September 2022 mini-budget on derivatives, the Bank of 
England and the Pensions Regulator issued guidance on the minimum level of collateral pension schemes should hold. At 31 March 2024 
(and 31 March 2023), the BTPS held more collateral than these minimum levels. 
The table below analyses the fair value of the BTPS assets by asset category, subdivided by valuations based on a quoted market price in 
an active market, and those that are not (such as investment funds). 
BT Group plc Annual Report 2024
188
Financial statements
Notes to the consolidated financial statements continued
19. Retirement benefit plans continued

2024
2023
Total
assetsa
of which
quoted
Total
assetsa
of which
quoted
At 31 March
£bn
£bn
£bn
£bn
Growth
Equities
UK
 
0.1  
— 
 
0.1  
— 
Overseas Developed
 
2.3  
1.1 
 
1.7  
0.6 
Emerging Markets
 
—  
— 
 
—  
— 
Private Equity
 
1.3  
— 
 
1.1  
— 
Property
UK
 
2.3  
— 
 
2.6  
— 
Overseas
 
0.6  
— 
 
0.8  
— 
Other growth assets
Absolute Returnb
 
1.2  
— 
 
0.9  
— 
Non-Core Creditc
 
4.2  
0.4 
 
4.2  
0.4 
Mature Infrastructure
 
1.0  
— 
 
1.2  
— 
Liability matching
Government bondsd
UK
 
14.6  
14.5 
 
13.2  
13.1 
Investment grade credit
Global
 
10.3  
7.7 
 
10.4  
8.2 
Secure income assetse
 
4.0  
— 
 
3.7  
— 
Cash, derivatives and other
Cash balances
 
0.8  
— 
 
3.0  
— 
Financial derivative contracts
 
(4.9)  
— 
 
(4.2)  
— 
Longevity insurance contractf
 
(0.9)  
— 
 
(0.8)  
— 
Otherg
 
(1.5)  
— 
 
0.8  
— 
Totalh
 
35.4  
23.7 
 
38.7  
22.3 
a At 31 March 2024, the BTPS held nil (FY23: nil) equity issued by the group and £1.7bn (FY23: £1.6bn) of bonds issued by the group. 
b This allocation seeks to generate a positive return in all market conditions.
c This allocation includes a range of credit investments, including emerging market, sub-investment grade and unrated credit. The allocation seeks to exploit investment opportunities 
within credit markets using the expertise of a range of specialist investment managers.
d Around 77% (FY23: 72%) of these are index-linked gilts with the remainder in conventional gilts.
e This allocation consists of assets which aim to provide the BTPS with contractual bond-like income, often inflation-protected. The assets include property, infrastructure and 
investment-grade private credit.
f The value reflects experience to date on the contract from higher than expected deaths; this has partly offset a corresponding reduction in BTPS’s liabilities over the same period. 
g  Other balances comprise net amounts receivable/(payable) by the BTPS, including balances due to investment counterparties relating to repurchase agreements.
h Of which held in the co-investment vehicle: £0.1bn (FY23: <£1m).
BTPS IAS 19 Liabilities
 Critical accounting estimates and significant judgements made when valuing our 
pension liabilities
The measurement of the service cost and the liabilities involves judgement about uncertain events including the life expectancy of 
members, price inflation and the discount rate used to calculate the net present value of the future pension payments. We use 
estimates for all of these uncertain events. Our assumptions reflect historical experience, market expectations (where relevant), 
actuarial advice and our judgement regarding future expectations at the balance sheet date. While assumptions are made for these 
events, actual benefit payments in a given year may be higher or lower than the assumption, for example if members retire sooner or 
later than assumed. The liabilities are the present value of the future expected benefit payments.
What are the forecast benefits payable from the BTPS?
There are c.265,000 members, and their dependants, who will be receiving benefits from the BTPS for the remainder of their lives. 
Members currently receiving pension benefits make up around 73% of the liabilities and 79% of the membership by number.
BT Group plc Annual Report 2024
189
Financial statements
19. Retirement benefit plans continued

The chart below illustrates how the forecast benefits payable from the BTPS, and IAS 19 liabilities, projected using the IAS 19 assumptions 
evolve over time. 
The estimated duration of the BTPS liabilities, which is an indicator of the weighted average term of the discounted future payments, is 
11 years (FY23: 12 years) using the IAS 19 assumptions. The duration is sensitive to the assumptions and has reduced mainly due to the 
increase in bond yields, and therefore discount rate, over the year.
What are the most significant assumptions, and how have they been set?
The most significant financial assumptions used to calculate the IAS 19 liabilities for the BTPS are the discount rate and inflation. The most 
significant demographic assumption used is how life expectancy will evolve over time which is illustrated as forecast life expectancies in 
the table below.
At 31 March
2024
2023
Discount rate
 4.90% 
 4.85% 
Inflation – RPI
 3.25% 
 3.35% 
Inflation – CPI
 2.80% 
 2.85% 
Life expectancy – male aged 60 in lower pension bracket 
24.9 years
24.7 years
Life expectancy – male aged 60 in higher pension bracket
26.7 years
26.9 years
Life expectancy – female aged 60
27.4 years
27.5 years
Average additional life expectancy for a male member retiring at age 60 in 10 years’ time
0.4 years
0.4 years
While the financial assumptions are typically scheme-specific, the average financial assumptions weighted by liabilities across all schemes 
are within 0.05% of the figures shown in the table above.
BT Group plc Annual Report 2024
190
Financial statements
Notes to the consolidated financial statements continued
19. Retirement benefit plans continued

The table below summarises how these assumptions have been set, including key changes over the year.
Detail
Discount rate
The discount rate assumption is calculated by applying the projected BTPS benefit cash flows to a corporate bond yield 
curve constructed by our external actuary based on the yield on AA-rated £-denominated corporate bonds at the balance 
sheet date. In setting the yield curve, judgement is required on the selection of appropriate bonds to be included in the 
universe and the approach used to then derive the yield curve. 
The increase in the discount rate over the year reflects changes in the market yield of corporate bonds.
RPI and CPI 
inflation
RPI inflation expectations are calculated by applying the projected BTPS benefit cash flows to an inflation curve derived 
from market yields on UK government bonds, and making a deduction for an inflation risk premium (to reflect the extra 
premium paid by investors for inflation linked assets) of 0.2% p.a. before 2030 and 0.3% p.a. thereafter.
CPI inflation expectations are set with reference to the RPI inflation assumption taking into account market data and 
independent estimates of the expected difference. Before 2030, CPI inflation is assumed to be 1.0% lower than RPI 
inflation (FY23: 1.0%). RPI will be aligned with CPIH from 2030, and we assume a nil gap between CPI and CPIH inflation 
as historically these measures have been broadly comparable. 
Pension 
increases
Under the BTPS rules, benefit increases prior to retirement are primarily linked to CPI capped at 5%, and the majority of 
benefits increase after retirement linked to either CPI for Sections A and B or RPI with a 5% cap for Section C. Benefits are 
assumed to increase in line with the RPI or CPI inflation assumptions. 
Longevity
The longevity assumption takes into account:
– the actual mortality experience of the BTPS pensioners, based on a formal review carried out for the 2023 triennial 
funding valuation; and
– future improvements in longevity based on the CMI’s 2022 Mortality Projections model published by the UK actuarial 
profession.
There is significant uncertainty for future life expectancy assumptions following the Covid-19 pandemic. We continue to 
assume that following the pandemic there is a short-term increase in deaths compared to the assumptions adopted prior 
to the pandemic and we have fully allowed for population mortality data from 2022, but not data from 2020 and 2021. 
Allowing for the published 2022 CMI model has reduced the BTPS liabilities by £0.4bn. 
We continue to assume mortality will improve in the long-term by 1% per year.
Risks to BT Group arising from the BTPS
Background
A large increase in our pension scheme obligations could lead to an increased deficit, resulting in additional contributions being required, 
potentially impacting our business plans. Changes in factors, such as bond yields, life expectancy or inflation can have an impact on the IAS 
19 and funding assumptions, impacting the measurement of BTPS liabilities. These factors can also impact the BTPS assets. A summary of 
changes and potential impacts is set out in the table below.
BT Group plc Annual Report 2024
191
Financial statements
19. Retirement benefit plans continued

Change in
Impact
Government 
bond yields
A fall in government bond yields will:
– increase the IAS 19 liabilities, driven by the fall in the discount rate; and
– increase the assets, driven by an increase in the value of government bonds, corporate bonds and interest rate 
derivatives held by the BTPS.
Credit spreads A fall in credit spreads will lead to a fall in corporate bond yields, and therefore an increase in the IAS 19 liabilities and a 
corresponding but smaller increase in both asset values and funding liabilities.
Inflation 
expectations
A significant proportion of the benefits paid to members are currently increased in line with RPI or CPI inflation. The risk 
of high inflation is limited by caps on some of the inflationary increases under the BTPS rules e.g. benefit increases prior 
to retirement are primarily linked to CPI capped at 5%, and for Section C members benefits primarily increase after 
retirement in line with RPI with a 5% cap.
Changes in average inflation expectations over the lifetime of the plan
An increase in average inflation expectations will: 
– increase the IAS 19 liabilities; and
– increase the value of index-linked bonds, other inflation linked assets and inflation derivatives held by the BTPS.
Changes in inflation over the next year
If inflation over the next year is lower or higher than assumed, it would lead to a fall or increase in the IAS 19 liabilities. We 
estimate the change in asset values will broadly offset the movement in both the IAS 19 liabilities and funding liabilities. 
If inflation is higher than the caps that apply to benefits, the assets will increase by more than the liabilities. Similarly, in a 
deflationary environment, the asset values are expected to fall by more than the IAS 19 liabilities and funding liabilities 
since the payments on index-linked gilts would be reduced but pensions paid by the BTPS would not necessarily fall to 
fully offset the fall in asset values.
Hedging CPI benefits
The BTPS primarily holds RPI inflation-linked assets and derivatives to hedge inflation-linked benefits. Around two-
thirds of the inflation-linked benefits increase with reference to CPI. A 0.25% a year increase in CPI inflation 
expectations before 2030 (with no corresponding change in RPI inflation expectations) would increase the IAS 19 deficit 
by around £0.3bn as at 31 March 2024.
Growth assets
A significant proportion of the BTPS assets are invested in growth assets, such as equities and property. The BTPS has 
temporary hedges in place to partly offset the impact of a fall in equity markets, and adopts a diverse portfolio. A fall in 
these growth assets will increase the IAS 19 and funding deficit.
Life 
expectancy
An increase in the life expectancy of members will result in benefits being paid out for longer, leading to an increase in 
the IAS 19 liabilities and funding liabilities.
The BTPS holds two longevity insurance contracts which covers around 32% of the BTPS’s total exposure to 
improvements in longevity, providing long-term protection and income to the BTPS in the event that members live 
longer than currently expected.
Other risks include: changes in legislation or regulation which impact the value of the liabilities or assets; and member take-up of options 
before and at retirement to reshape their benefits. The scale of the BTPS means that investment changes and any future de-risking 
actions need to be planned and executed carefully, potentially over an extended timeframe or multiple transactions.
Scenario analysis
The potential negative impact of these risks is illustrated by the following five scenarios. These have been assessed by BT Group’s 
independent actuary as scenarios that might occur no more than once in every 20 years. The scenarios have been updated to reflect 
market experience over the last year. 
Scenario
1-in-20 events
2024
2023
1. Fall in bond yieldsa
 1.2% 
 1.2% 
2. Increase in credit spreadsb
 0.9% 
 0.9% 
3. Increase to average inflation expectations over the lifetime of the planc
 1.1% 
 1.1% 
4. Fall in growth assetsd
 15.0% 
 20.0% 
5. Increase to life expectancy
1.2 years
1.3 years
a Scenario assumes a fall in the yields on both government and corporate bonds.
b Scenario assumes an increase in the yield on corporate bonds, with no change to yield on government bonds.
c Scenario assumes average RPI and CPI inflation expectations over the lifetime of the plan increase by the same amount.
d Impact includes the dampening effect of temporary equity hedges held by the BTPS. Scenario considers combinations of changes to the key inputs used to value the growth assets, 
leading to a 15% (FY23: 20%) fall in the aggregate value of the growth assets prior to temporary hedges held by the BTPS.
The impact shown under each scenario looks at each event in isolation and reflects the liabilities, assets and investment strategy at 
31 March 2024. In practice a combination of events could arise, and the effects are not additive nor are they linear (e.g. doubling the 
change in bond yields assumed will not double the impact). The asset allocation is not fixed and changes over the year may impact the 
sensitivities shown.
BT Group plc Annual Report 2024
192
Financial statements
Notes to the consolidated financial statements continued
19. Retirement benefit plans continued

Impact of illustrative scenarios which might occur no more than once in every 20 years
The sensitivities have been prepared using the same approach as FY23 which involves calculating the liabilities and assets allowing for the 
change in market conditions assumed under the scenario as if they had occurred at the reporting date. The change in impact from FY23 is 
due to a combination of: changes in the scenarios, changes in asset and liability values over the year, and changes in the scheme’s 
investment strategy in line with the agreed de-risking plan.
BTPS funding
Triennial funding valuation
A funding valuation is carried out for the Trustee by a professionally qualified independent actuary at least every three years. The funding 
valuation assesses the on-going financial health of the BTPS. If there are insufficient assets to meet the estimated future benefit payments 
to members (i.e. a funding deficit), BT Group and the Trustee agree the amount and timing of additional cash contributions. It is prepared 
using the principles set out in UK pension legislation, such as the 2004 and 2021 Pensions Acts, and uses a prudent approach overall when 
setting the actuarial assumptions. Some of the key differences compared to the IAS 19 deficit are set out in the table below.
IAS 19
Funding
Purpose
Balance sheet in BT Group accounts
Assessing the on-going financial health and setting cash payments
Regulation
IFRS
UK pensions legislation
Frequency
Semi-annually
At least every three years
Key assumptions
Determined by
BT Group
BT Group and BTPS agreement
Discount rate
Yield curve based on AA corporate bonds
Yield curve reflecting prudent return expected from BTPS assets
Other assumptions
Best estimate
Prudent overall approach
Assets
BT Group accounts excludes ABF value
Includes ABF value
The different purpose and principles lead to different assumptions being used, and therefore a different estimate for the liabilities and deficit.
The latest funding valuation was performed as at 30 June 2023. The next funding valuation will have an effective date of no later than 
30 June 2026. 
The results of the two most recent triennial valuations are shown below.
30 June 2023
30 June 2020
£bn
£bn
Funding liabilities
 
(40.9)  
(65.3) 
Assets
 
37.2 
 
57.3 
BTPS Funding deficit
 
(3.7)  
(8.0) 
Percentage of accrued benefits covered by the BTPS assets at valuation date
 91 %
 88 %
Key assumptions at valuation date:
Discount ratea
 5.3 %
 1.4 %
Inflation – RPI
 3.6 %
 3.2 %
Inflation – CPI
 3.2 %
 2.4 %
Life expectancy – male aged 60 in lower pension bracket
25.5 years
25.8 years 
Life expectancy – male aged 60 in higher pension bracket
27.2 years
28.0 years
Life expectancy – female aged 60
28.0 years
28.5 years
Average additional life expectancy for a male member retiring at age 60 in 10 years’ time
0.8 years
0.9 years
a The discount rate has been derived from prudent return expectations that reflect the investment strategy over time, allowing for the BTPS to de-risk to a portfolio consisting 
predominantly of bond and bond-like investments by 2034.
BT Group plc Annual Report 2024
193
Financial statements
19. Retirement benefit plans continued

Scenario analysis of the funding position (unaudited)
The impact of changes in market conditions on the funding liabilities differs to the impact on the IAS 19 liabilities due to the size of the 
liabilities and how the assumptions are set. For example, the funding liabilities use a discount rate linked to a risk-free rate plus a margin 
based on the BTPS’s investment strategy, whereas the IAS 19 liabilities use a discount rate based on corporate bond yields. The chart 
below illustrates the approximate impact of the scenarios set on page 192 on the 30 June 2023 funding position. 
The figures shown in the table apply to the BTPS assets and funding liabilities as at 30 June 2023; an increase in the assets or funding 
liabilities will increase the impact of the scenarios shown. 
Deficit payments from the Group
In November 2023, the 2023 triennial funding valuation was finalised, agreed with the Trustee, and certified by the Scheme Actuary. The 
funding deficit at 30 June 2023 was £3.7bn, down from £8.0bn at the 2020 funding valuation following £4.4bn of deficit contributions.
Annual contribution amounts remain unchanged, at £600m in each financial year until 31 March 2030, a final payment of £490m before 
30 April 2030, and the £180m pa payments due under the ABF arrangement agreed at the 2020 valuation.
No payments are currently payable under the future funding commitment (see page 195).
These payments are summarised in the table below.
Year to 31 March (£m)
2025
2026
2027
2028
2029
2030
2031
2032
2033
2034
Payments from BT plca
600b
600b
600b
600b
600b
600b
490  
—  
—  
— 
Future funding commitment payments
 
—  
—  
—  
—  
—  
—  
—  
—  
—  
— 
Payments from ABF
 
180  
180  
180  
180  
180  
180  
180  
180  
180  
180 
Total
 
780  
780  
780  
780  
780  
780  
670  
180  
180  
180 
a Payments are due by 30 April each year.
b £10m is directly payable to the BTPS, and BT Group currently intends to pay the balance into the co-investment vehicle.
ABF
Under the ABF, £180m p.a. is paid into the BTPS until June 2033, secured on EE Limited. If the BTPS reaches full funding as calculated by 
the Scheme Actuary at any 30 June, the ABF payments to the BTPS will cease. BT Group received tax relief at inception of the ABF based 
on the original market value of £1.7bn, and will receive further tax-relief if payments are made to the BTPS in excess of this amount. 
Assuming they are all paid, future payments from the ABF have a present value of £1.3bn at 31 March 2024 (FY23: £1.4bn). The fair value 
of the ABF is £1.2bn at 31 March 2024 (FY23: £1.3bn) which allows for the probability of the BTPS becoming fully funded, and the 
payments to the BTPS ending early.
The fair value of the ABF is included in the assets of the BTPS when assessing the funding deficit. Payments from the ABF to the BTPS are 
treated in the same way as coupon payments from bonds, and do not affect the funding deficit when they are paid.
The fair value of the ABF is not included in the assets of the BTPS when assessing the IAS 19 deficit in the group consolidated accounts, as 
it is a non-transferable asset issued by the group. Payments from the ABF to the BTPS are treated as deficit contributions, and reduce the 
IAS 19 deficit, when they are paid.
Co-investment vehicle
A co-investment vehicle was set up in 2021 which provides BT Group with some protection against the risk of overfunding and therefore 
enables BT Group to provide upfront funding with greater confidence. BT Group is eligible for future refunds if some or all of the co-
investment vehicle funds are surplus to the BTPS’s requirements, unless the BTPS, acting prudently but reasonably, decides to defer or 
reduce these payments. Assessments will be carried out over a series of dates between June 2032 and June 2041. 
Payments made by BT Group into the co-investment vehicle will be invested as if part of the overall BTPS investment strategy. BT Group 
will receive tax relief in respect of any funds paid to the BTPS from the vehicle but does not receive tax relief when payments are made to 
the co-investment vehicle. 
BT Group plc Annual Report 2024
194
Financial statements
Notes to the consolidated financial statements continued
19. Retirement benefit plans continued

The fair value of assets in the co-investment vehicle, £0.1bn at 31 March 2024 (FY23: <£1m), is included in the assets of the BTPS when 
assessing both the IAS 19 and funding deficits.
Protections for BTPS (going concern)
BT Group has agreed to provide the Trustee with certain protections to 2035.
Feature
Detail
Future funding 
commitment
BT Group will provide additional contributions, of between £150m p.a. and £300m p.a., should the funding deficit fall 
behind plan by more than an agreed threshold at any two consecutive reviews. The reviews will be carried out every 
June and December and until the 2026 valuation the threshold is £1bn. 
Payments are due within 12 months of the payments being switched on. Payments will stop once the semi-annual 
assessment shows the funding deficit is back on plan, i.e. outstanding deficit contributions are sufficient to address the 
funding deficit. 
At the 31 December 2023 assessment date, the funding position was within the above limit. The next test will be carried 
out as at 30 June 2024. 
Shareholder 
distributions
BT Group will provide additional payments to the BTPS by the amount that shareholder distributions exceed a 
threshold. For the three years following the 2023 valuation, the threshold allows for 10% per year dividend per share 
growth based on dividends of 7.7p per share in FY23, adjusted to reflect the interim dividend declared at our half-year 
results.
BT Group has agreed to implement a similar protection at each subsequent valuation, with the terms to be negotiated 
at the time. 
BT Group will consult with the Trustee if: 
– it considers share buybacks for any purpose other than relating to employee share awards;
– it considers making any shareholder distributions in any of the next three years if annual normalised free cash flow of the 
group is below £1bn in the year and distributions within the year would be in excess of 120% of the above threshold; or
– it considers making a special dividend. 
Material 
corporate 
events
In the event that BT Group generates net cash proceeds greater than a threshold from disposals (net of acquisitions) in 
any financial year, BT Group will make additional contributions to the BTPS. The threshold is £750m p.a. to 30 June 
2026. 
The amount payable is one-third of the total net cash proceeds.
BT Group will consult with the Trustee if:
– it considers making acquisitions with a total cost of more than £1.0bn in any 12-month period;
– it considers making any disposal of more than £1.0bn;
– it considers making a Class 1 transaction which will have a material impact on the BTPS (acquisition or disposal);
– it is likely to be subject to a takeover offer; or
– there are any other corporate or third-party events which may have a materially detrimental impact on BT Group’s 
covenant to the BTPS (in which case BT Group will use its best endeavours to agree appropriate mitigation).
This obligation is ongoing until otherwise terminated. 
Negative 
pledge
A negative pledge that future creditors will not be granted superior security to the BTPS in excess of £0.5bn, to cover 
any member of the BT Group. Business as usual financing arrangements are not included within the £0.5bn.
No additional contributions were triggered during FY24.
Protections for BTPS (insolvency)
The Scheme Actuary assumes that in the highly unlikely event that BT Group were to become insolvent, the Trustee would continue to run the 
Scheme with a low-risk, closely-matched investment strategy including additional margins for risk. On this basis and assuming no further 
contribution from BT Group, it was estimated that at 30 June 2023 the assets of the Scheme would have met around 80% of the liabilities. 
Were this to occur, BTPS members would benefit from the following additional protections.
Feature
Detail
Crown Guarantee
The Crown Guarantee was granted by the Government when BT was privatised in 1984; it would only come into 
effect upon the insolvency of BT plc. In July 2014, the courts established that:
– the Crown Guarantee covers BT plc’s funding obligation in relation to the benefits of members of the BTPS who 
joined post-privatisation as well as those who joined pre-privatisation (subject to certain exceptions); and
– the funding obligation to which the Crown Guarantee relates is measured with reference to BT plc’s obligation 
to pay deficit contributions under the rules of the BTPS.
The Crown Guarantee is not taken into account for the purposes of the actuarial valuation of the BTPS and is an 
entirely separate matter, only being relevant in the highly unlikely event that BT plc becomes insolvent.
Pension Protection 
Fund (PPF)
Further protection is also provided by the PPF which is the fund responsible for paying compensation in respect of 
schemes where the employer becomes insolvent.
BT Group plc Annual Report 2024
195
Financial statements
19. Retirement benefit plans continued

EEPS funding valuation
The most recent triennial valuation of the defined benefit section was performed as at 31 December 2021 and agreed in March 2023. This 
showed a funding deficit of £218m. The group is scheduled to contribute £1.7m each month until 31 July 2025 and a final payment of up 
to £80m by 31 March 2026. £31.7m (FY23: £13.3m) of deficit contributions were paid by the group to the EEPS during the year. 
At the triennial valuation date, the EEPS had a diversified investment strategy, investing scheme assets in: global equities (25%), property 
& illiquid alternatives (20%), an absolute return portfolio (24%) and a liability-driven investment portfolio (31%). 
20. Own shares
 Material accounting policies that apply to own shares
Own shares are recorded at cost and deducted from equity. When shares held for the beneficial ownership of employees vest 
unconditionally or are cancelled they are transferred from the own shares reserve to retained earnings at their weighted average 
cost.
Treasury sharesa
Employee share ownership trusta
Total
millions
£m
millions
£m
millions
£m
At 1 April 2022
 
41  
(108)  
94  
(166)  
135  
(274) 
Own shares purchasedb
 
—  
— 
 
114  
(187)  
114  
(187) 
Share options exercisedb
 
(5)  
14 
 
—  
— 
 
(5)  
14 
Share awards vested
 
—  
— 
 
(14)  
25 
 
(14)  
25 
At 31 March 2023
 
36  
(94)  
194  
(328)  
230  
(422) 
Own shares purchasedb
 
—  
— 
 
64  
(83)  
64  
(83) 
Share options exercisedb
 
(20)  
52 
 
(44)  
72 
 
(64)  
124 
Yourshare vestings
 
—  
— 
 
(5)  
8 
 
(5)  
8 
Share awards vested
 
—  
— 
 
(37)  
62 
 
(37)  
62 
At 31 March 2024
 
16  
(42)  
172  
(269)  
188  
(311) 
a At 31 March 2024, 16,299,007 shares (FY23: 36,190,551) with an aggregate nominal value of £1m (FY23: £2m) were held at cost as treasury shares and 172,157,686 shares (FY23: 
193,798,578) with an aggregate nominal value of £9m (FY23: £10m) were held in the Trust.
b See group cash flow statement. The cash paid for the repurchase of ordinary shares was £133m (FY23: £138m). 35m shares (FY23: 40m) were purchased via forward contracts. The 
cash received from proceeds on the issue of treasury shares was £57m (FY23: £5m). At 31 March 2024 the group had forward contracts to purchase 15m shares (FY23: 55m shares).
The treasury shares reserve represents BT Group plc shares purchased directly by the group. The BT Group Employee Share Ownership 
Trust (the Trust) also purchases BT Group plc shares.
The treasury shares and the shares in the Trust are being used to satisfy our obligations under employee share plans, further details of 
which are provided in note 21.
21. Share-based payments
 Material accounting policies that apply to share-based payments
We operate a number of equity-settled share-based payment arrangements, under which the group receives services from 
employees in consideration for equity instruments (share options and shares) of the group. Equity-settled share-based payments 
are measured at fair value at the date of grant. The fair value is recognised as an expense on a straight-line basis over the vesting 
period, based on the group’s estimate of the options or shares that will eventually vest. Fair value of share option schemes is 
measured using a Binomial options pricing model.
Service conditions are vesting conditions. Any other conditions are non-vesting conditions which are taken into account to 
determine the fair value of equity instruments granted.  When an award or option does not vest as a result of a failure to meet a non-
vesting condition that is within the control of either counterparty, it is accounted for as a cancellation. Cancellations are treated as 
accelerated vesting and all remaining future charges are immediately recognised in the income statement. As the requirement to 
save under an employee saveshare arrangement is a non-vesting condition, employee cancellations, other than through a 
termination of service, are treated as an accelerated vesting.
No adjustment is made to total equity for awards that lapse or are forfeited after the vesting date.
2024
2023
Year ended 31 March
£m
£m
Employee saveshare plans
 
13  
21 
Yourshare
 
13  
12 
Executive share plans:
Deferred Bonus Plan (DBP)
 
9  
12 
Retention and Restricted Share Plans (RSP)
 
36  
35 
 
71  
80 
BT Group plc Annual Report 2024
196
Financial statements
Notes to the consolidated financial statements continued
19. Retirement benefit plans continued

What share incentive arrangements do we have?
Our plans include savings-related share option plans for employees and those of participating subsidiaries and several share plans for 
executives. All share-based payment plans are equity-settled. Details of these plans are set out below. 
Employee Saveshare Plans
Under HMRC-approved savings-related share option plans, employees save on a monthly basis, over a three- or five-year period, towards 
the purchase of shares at a fixed price determined when the option is granted. This price is set at a 20% discount to the market price for 
five-year plans and 10% for three-year plans. The options must be exercised within six months of maturity of the savings contract, 
otherwise they lapse. Similar plans operate for our overseas employees. The scheme did not operate in FY24 or FY23.
Yourshare
In FY21 and FY22, all eligible employees of the group were awarded £500 of BT shares. The shares are held in trust for a three-year 
vesting period after which they will be transferred to employees, providing they have been continuously employed during that time. A 
similar plan operated for overseas employees. Under the terms of Yourshare and the executive share plans, dividends are reinvested in 
shares that are added to the relevant share awards, unless the employee has elected to receive dividends in cash.
Deferred Bonus Plan (DBP)
Awards are granted annually to selected senior employees where part of their bonus is awarded in shares in the group. These shares vest 
after three years. 
Retention and Restricted Share Plans (RSP)
Awards are granted to selected employees. Shares in the group are transferred to participants at the end of a specified retention or 
restricted period if they continue to be employed by the group throughout that period. 
Incentive Share Plan (ISP)
Under this scheme, certain employees were awarded shares if the group met performance measures linked to total shareholder return, 
normalised free cash flow and revenue growth over a three year period. The last ISP was granted in 2019 and vested in 2022.
Employee Saveshare Plans
Movements in Employee Saveshare options are shown below.
Number of share options
Weighted average exercise price
2024
2023
2024
2023
Year ended 31 March
millions
millions
pence
pence
Outstanding at 1 April
 
269  
342 
 
102  
102 
Granted
 
—  
— 
 
—  
— 
Forfeited
 
(23)  
(42)  
118  
130 
Exercised
 
(64)  
(5)  
89  
96 
Expired
 
(26)  
(26)  
151  
208 
Outstanding at 31 March
 
156  
269 
 
103  
102 
Exercisable at 31 March
 
—  
— 
 
—  
— 
The weighted average share price for all options exercised during FY24 was 118p (FY23: 153p).
The following table summarises information relating to options outstanding and exercisable under Employee Saveshare plans at 31 March 
2024.
Normal dates of vesting and exercise (based on calendar years)
Exercise price
per share
Weighted
average
exercise
price
Number of
outstanding
options
millions
Weighted average 
remaining contractual 
life (months)
2024
164p
164p  
27  
10 
2025
82p
82p  
129  
22 
Total
96p  
156  
20 
BT Group plc Annual Report 2024
197
Financial statements
21. Share-based payments continued

Executive share plans
Movements in executive share plan awards are shown below:
Number of shares (millions)
ISP
DBP
RSP
Total
At 1 April 2022
 
31  
22  
58  
111 
Awards granted
 
—  
6  
29  
35 
Awards vested
 
(5)  
(5)  
(4)  
(14) 
Awards lapsed
 
(26)  
(1)  
(7)  
(34) 
Dividend shares reinvested
 
—  
2  
4  
6 
At 31 March 2023
 
—  
24  
80  
104 
Awards granted
 
—  
6  
42  
48 
Awards vested
 
—  
(10)  
(27)  
(37) 
Awards lapsed
 
—  
(1)  
(8)  
(9) 
Dividend shares reinvested
 
—  
1  
6  
7 
At 31 March 2024
 
—  
20  
93  
113 
Fair values
There were no grants under Employee Saveshare or the ISP in FY24 or FY23.
Volatility has been determined by reference to BT’s historical volatility which is expected to reflect the BT share price in the future. An 
expected life of six months after vesting date is assumed for Employee Saveshare options. The risk-free interest rate is based on the UK 
gilt curve in effect at the time of the grant, for the expected life of the option.
The fair values for the DBP and RSP were determined using the market price of the shares at the grant date. The weighted average share 
price for DBP awards granted in FY24 was 135p (FY23: 188p) and for RSP awards granted in FY24 was 112p (FY23: 183p).
22. Divestments and assets & liabilities classified as held for sale
 Material accounting policies that apply to divestments and assets & liabilities classified 
as held for sale
We classify non-current assets or a group of assets and associated liabilities, together forming a disposal group, as ‘held for sale’ 
when their carrying amount will be recovered principally through disposal rather than continuing use and the sale is highly probable. 
Sale is considered to be highly probable when management are committed to a plan to sell the asset or disposal group and the sale 
should be expected to qualify for recognition as a completed divestment within one year from the date of classification. We measure 
non-current assets or disposal groups classified as held for sale at the lower of their carrying amount and fair value less costs of 
disposal. Intangible assets, property, plant and equipment and right-of-use assets classified as held for sale are not depreciated or 
amortised.
Upon completion of a divestment, we recognise a profit or loss on disposal calculated as the difference between (i) the aggregate of 
the fair value of the consideration received and the fair value of any retained interest less costs incurred in disposing of the asset or 
disposal group and (ii) the carrying amount of the asset or disposal group (including goodwill). The profit or loss on disposal is 
recognised as a specific item, see note 9.
In the event that non-current assets or disposal groups held for sale form a separate and identifiable major line of business, the 
results for both the current and comparative periods are reclassified as ‘discontinued operations’.
Divestments
During the year, we completed the disposals of certain city fibre networks and associated infrastructure assets in Germany and Pelipod 
Limited, both of which were classified as held for sale in FY23, and the disposal of BT Enia, a subsidiary of BT Italia. We recognised a net 
profit on disposal after tax of £25m through specific items from these divestments, see below for further details.
In FY23, we completed the disposal of BT Sport operations through forming a sports joint venture (Sports JV) with Warner Bros. Discovery 
(WBD) recognising a profit on disposal after tax of £28m through specific items. During the current year, we recorded £10m additional net 
transaction costs through specific items and received £24m from the deferred cash consideration recorded at completion of the 
transaction.
The disposals in the current or prior year have not been reclassified as discontinued operations as they do not meet our definition of a 
separate major line of business.
BT Group plc Annual Report 2024
198
Financial statements
Notes to the consolidated financial statements continued
21. Share-based payments continued

The net consideration recognised on completion of these divestments was as follows:
2024
2023a
£m
£m
Intangible assets, including allocated goodwill of £18m (FY23: £83m)
 
19  
88 
Property, plant and equipment
 
13  
13 
Right-of-use assets
 
3  
1 
Other assetsb
 
8  
760 
Liabilitiesb
 
(8)  
(357) 
Net assets of operations disposed
 
35  
505 
Net financial liabilities recognisedc
 
—  
534 
Net impact on the consolidated balance sheet
 
35  
1,039 
Profit on disposal, after tax (note 9)
 
25  
28 
Net consideration from divestments completed in the year
 
60  
1,067 
Additional net transaction costs on the BT Sport disposal (note 9)
 
(10)  
— 
Net consideration
 
50  
1,067 
Satisfied by
Proceeds received in the year per the cash flow statement
 
81  
29 
Deferred cash consideration on BT Sport disposald
 
(24)  
70 
Deferred cash consideration from other divestments
 
5  
— 
Transaction costs
 
(2)  
(35) 
Investment in A preference shares in Sports JV (note 24)
 
—  
428 
Investment in C preference shares in Sports JVe
 
—  
161 
Ordinary equity interest in Sports JV (note 24)
 
—  
414 
Net consideration from divestments completed in the year
 
60  
1,067 
Additional net transaction costs on the BT Sport disposal (note 9)
 
(10)  
— 
Net consideration
 
50  
1,067 
a Balances in FY23 relate to the BT Sport disposal.
b  Other assets in FY23 included £632m of capitalised programme rights and £104m prepayments relating to programme rights payments made for licence periods that had not yet 
started. Liabilities included £351m relating to outstanding trade payables to broadcast rights holders for the current licence period.
c  Net financial liabilities in FY23 the fair value of BT’s obligation under the minimum revenue commitment of £712m, less tax credit of £178m.
d  Deferred cash consideration on the BT Sport disposal relates to the discounted cash flows due to BT from the remaining fixed consideration payable by WBD, of which £24m has 
been received in FY24. £52m of deferred consideration is outstanding at 31 March 2024 and held in trade and other receivables, see note 16.
e  BT’s C preference shares in the Sports JV are expected to be sold to WBD at the end of BT’s earn-out entitlement in consideration for any programme rights funded by BT and is 
therefore akin to deferred consideration for pre-funded programme rights contributed by BT in to the Sports JV at formation. See note 24 for further details. 
BT Sport
In August 2022 the group formed a sports joint venture (Sports JV) with Warner Bros. Discovery (WBD) combining BT Sport and WBD’s 
Eurosport UK business. As part of the transaction, the group’s wholly owned subsidiary, British Telecommunications plc (BT plc or BT) and 
WBD each contributed, sub-licensed or delivered the benefit of their respective sports rights and distribution businesses for the UK & 
Ireland to the Sports JV. Both parties each hold a 50% interest and equal voting rights in the Sports JV.
BT Sport’s distribution agreement with Virgin Media transferred to the Sports JV, and the Sports JV also entered into an agreement with 
Sky extending beyond 2030 to provide for its distribution of the Sports JV’s combined sports content. 
The production and operational assets of BT Sport transferred to WBD who manage and operate the production of the Sports JV’s sport 
content.
BT plc entered into a distribution agreement with the Sports JV to procure the sport content required to continue to supply our 
broadband, TV and mobile customers. BT plc’s agreement with the Sports JV will extend beyond 2030 and the first four years includes a 
minimum revenue guarantee of approximately £500m per annum, after which the agreement will change to a fully variable arrangement. 
BT no longer has control of the BT Sport operations based on the assessment of ownership and joint control over the key decisions of the 
Sports JV (50/50 with WBD) established through the Sports JV agreement. The group’s retained ordinary equity interest in the combined 
business has been classified as a joint venture under IFRS 11, see note 24.
WBD have the option to acquire BT plc’s 50% interest in the Sports JV at specified points during the first four years of the Sports JV (Call 
Option). The price payable under the Call Option will be 50% of the fair market value of the Sports JV to be determined at the time of the 
exercise, plus any unpaid fixed consideration and remaining earn-out as described below. If the Call Option is not exercised, BT plc will 
have the ability to exit its shareholding in the Sports JV either through a sale or IPO after the initial four-year period.
BT Group plc Annual Report 2024
199
Financial statements
22. Divestments and assets & liabilities classified as held for sale continued

 Critical & key accounting estimates and significant judgements made in accounting for the 
BT Sport disposal in FY23
The following critical and key accounting estimates and significant judgements were made in accounting for the BT Sport disposal in 
FY23 only and are not considered to be ongoing significant judgements.
Assessment of whether BT has joint control over the Sports JV
See note 24 for assessment of control.
Valuation of investment in A preference shares (akin to contingent consideration)
BT will receive an earn-out from the Sports JV (subject to liquidity and usual UK company law requirements), which will end at the 
earliest of:
– four years post completion of the transaction;
– the exercise by WBD of the Call Option; and 
– if the earn-out reaches an agreed cap.
The earn-out cash flows to BT are dependent on the cash profit generation of the Sports JV over the earn-out period and is therefore 
akin to contingent consideration, initially recorded at a fair value of £428m reflecting the present value of expected cash flows. 
Subsequent to the initial recognition, the group’s carried forward investment in A preference shares are remeasured to fair value at 
each reporting date in accordance with IFRS 9, see note 24.
Valuation of the minimum revenue guarantee in BT’s distribution agreement with the Sports JV
BT plc’s obligation under the minimum revenue guarantee of c. £2bn over the first four years of the Sports JV represents both a 
trading arrangement on market terms and a financing arrangement for the off-market element of the revenue guarantee, which has 
been recorded as a financial liability at an initial fair value of £712m.
The valuation of this financial liability, and what a fair cost-per-subscriber would be, is sensitive to a number of assumptions on 
volumes and price, and there is a range of outcomes which we could have arrived at. Alternative scenarios considered, based on the 
different prices and terms used with other market participants, could have resulted in a liability ranging from £543m to £837m.
The key assumptions in calculating the financial liability are in estimating what is a market wholesale price at market volume 
commitment that is supported by the forecast volumes for the related revenue streams. The volumes used are consistent with those 
included in the jointly-agreed business plan for the Sports JV. We note that the bottom of the range disclosed above is based on the 
price that we will pay when the minimum revenue guarantee has ended, however we do not believe that is an appropriate rate from 
the outset due to existing volume commitments.
The liability is held at amortised cost within trade and other payables on the balance sheet (see note 17) – the carrying amount at 
31 March 2024 has reduced to £465m (FY23: £660m) after payments made to the Sports JV on the minimum revenue guarantee.
Valuation of BT’s equity interest in the Sports JV
WBD has the option to acquire BT plc’s 50% interest in the Sports JV at specified points during the first four years of the Sports  JV. 
If the Call Option is not exercised, BT plc will have the ability to exit its shareholding in the JV either through a sale or IPO. 
The group valued its interest in the Sports JV based on the estimated fair value at exit and using the following key assumptions:
– BT expect to realise its interest in the Sports JV through exit rather than ongoing value in use.
– BT expect WBD to exercise its option to acquire BT’s 50% interest in the Sports JV at the end of the first four years of the Sports 
JV.
– An earnings multiple has been applied to the expected year 5 EBITDA per the jointly-agreed business plan - the multiple is at the 
lower end of a possible range identified from comparable peers and transactions in the premium sports subscription and 
broadcasting market.
The investment is subsequently accounted for using the equity method and will be subject to impairment testing at each reporting 
period, with any impairment losses recognised through specific items, see note 24.
Discounting of cash flows
All cash flows expected to be received or paid over time were discounted at a rate applicable to the risks associated with the cash flows:
– Deferred payments due to BT from WBD have been discounted at an appropriate post-tax cost of debt;
– BT’s earn-out from the Sports JV has been discounted at the weighted average cost of capital for the Sports JV at completion 
date; and
– BT’s commitments under the minimum guarantee have been discounted at the group’s post-tax cost of debt.
We do not consider the net present value of the transaction would be materially affected by a reasonable change in the discount rate.
Assets and liabilities held for sale
At 31 March 2024 there are no assets and liabilities classified as held for sale.
Assets and liabilities classified as held for sale at 31 March 2023 related to certain city fibre networks and associated infrastructure assets 
in Germany and Pelipod Limited. These divestments completed during FY24, and information on the gains and losses on disposal is 
disclosed above.
BT Group plc Annual Report 2024
200
Financial statements
Notes to the consolidated financial statements continued
22. Divestments and assets & liabilities classified as held for sale continued

The disposal groups held for sale comprised the following assets and liabilities:
2024
2023
At 31 March
£m
£m
Assets
Intangible assetsa
 
—  
13 
Property, plant and equipment
 
—  
4 
Right-of-use assets
 
—  
3 
Inventories
 
—  
— 
Trade and other receivables
 
—  
1 
Assets held for sale
 
—  
21 
Liabilities
Trade and other payables
 
—  
1 
Lease liabilities
 
—  
3 
Liabilities held for sale
 
—  
4 
a Intangible assets in FY23 include goodwill of £13m that has been allocated to the disposal group.
23. Investments
 Material accounting policies that apply to investments
Investments classified as amortised cost
These investments are measured at amortised cost. The carrying amount of these balances approximates to fair value. Any gain or 
loss on derecognition is recognised in the income statement. 
Investments classified as fair value through profit and loss
These investments are initially recognised at fair value plus direct transaction costs. They are re-measured at subsequent reporting 
dates to fair value and changes are recognised directly in the income statement. 
Equity instruments classified as fair value through other comprehensive income
We have made an irrevocable election to present changes in the fair value of equity investments that are not held for trading in other 
comprehensive income. All gains or losses, aside from dividends, are recognised in other comprehensive income and are not 
reclassified to the income statement when the investments are disposed of, instead any balance remaining in other comprehensive 
income is transferred to retained earnings. Dividends are recognised in the income statement when our right to receive payment 
is established. Equity investments are recorded in non-current assets unless they are expected to be sold within one year.
2024
2023
At 31 March
£m
£m
Non-current assets
Fair value through other comprehensive income
 
23  
23 
Fair value through profit or loss
 
6  
6 
Total non-current asset investments
 
29  
29 
Current assets
Investments held at amortised cost
 
2,366  
3,548 
Current asset investments
 
2,366  
3,548 
Investments held at amortised cost relate to money market investments denominated in sterling of £2,355m (FY23: £3,094m), in euros of 
£5m (FY23: £446m) and US dollars of £6m (FY23: £8m). Within these amounts are investments in liquidity funds of £1,815m (FY23: 
£3,491m), collateral paid on swaps of £40m (FY23: £48m), interest on investments of £11m (FY23: £9m) and gilt repurchase agreements 
£500m (FY23: £nil).
BT Group plc Annual Report 2024
201
Financial statements
22. Divestments and assets & liabilities classified as held for sale continued

Fair value estimation
Fair value hierarchy
Level 1
Level 2
Level 3
Total held at
fair value
At 31 March 2024
£m
£m
£m
£m
Non-current and current investments
Fair value through other comprehensive income
 
—  
—  
23  
23 
Fair value through profit or loss
 
6  
—  
—  
6 
Total
 
6  
—  
23  
29 
At 31 March 2023
Non-current and current investments
Fair value through other comprehensive income
 
—  
—  
23  
23 
Fair value through profit or loss
 
6  
—  
—  
6 
Total
 
6  
—  
23  
29 
The three levels of valuation methodology used are:
Level 1 – uses quoted prices in active markets for identical assets or liabilities.
Level 2 – uses inputs for the asset or liability other than quoted prices that are observable either directly or indirectly.
Level 3 – uses inputs for the asset or liability that are not based on observable market data, such as internal models or other valuation 
methods.
Level 3 balances consist of investments classified as fair value through other comprehensive income of £23m (FY23: £23m) which 
represent investments in a number of private companies. If specific market data is not available, these investments are held at cost, 
adjusted as necessary for impairments, which approximates to fair value.
24. Joint ventures and associates
2024
2023
At 31 March
£m
£m
Interest in joint ventures
 
302  
354 
Interest in associates
 
5  
5 
Total
 
307  
359 
Share of post tax loss of associates and joint ventures included in the income statement of £21m (FY23: £59m loss) includes £41m loss 
(FY23: £60m) relating to our sports joint venture (Sports JV) with Warner Bros. Discovery (WBD) and £20m profit (FY23: £1m) relating to 
our other joint ventures and associates including Rugby Radio Station. The Sports JV is the only material equity-accounted investment 
held by the group, see below for further details.
Sports JV
In FY23 we formed the Sports JV (known externally as TNT Sports) with WBD, combining BT Sport and WBD’s Eurosport UK business. 
Further details on the transaction are provided in note 22.
Key developments in the Sports JV during the year:
– BT Sport’s linear channels and live content were rebranded to TNT Sports prior to the start of the 2023/24 football season with 
streaming customers migrated to WBD’s discovery+ platform in October 2023. Eurosport UK rebranding will follow later in the year.
– Underlying trading, before adjustments made to align with the group’s accounting policies (see below), was profitable with stable 
subscriber volumes.
– Premier League rights were extended with a four-year deal to air 52 exclusively live matches per season until 2029, and a four-year deal 
was agreed with the Football Association to show the FA Cup from 2025. 
The group holds both ordinary equity shares and preference shares in the Sports JV entity. 
BT Group plc Annual Report 2024
202
Financial statements
Notes to the consolidated financial statements continued
23. Investments continued

 Material accounting policies that apply to the Sports JV
Assessment of whether BT has joint control over the Sports JV
The Sports JV is classified as a joint venture based on an assessment under IFRS 10 and 11 of the ownership, voting power and joint 
control established through the joint venture agreement between BT and WBD. 
Factors relevant to our assessment:
– Equal voting rights over the activities that most significantly impact the returns of the Sports JV, namely decisions around new or 
existing sports rights and distribution arrangements.
– Unequal cash distribution during the first four years of the JV due to the earn-out mechanism and larger business contributed into 
the JV by BT.
– Revolving credit facility (RCF) provided by BT to fund short-term liquidity required by the Sports JV for working capital and 
commitments to sports rights holders.
– WBD’s call option to acquire BT’s 50% interest in the Sports JV is not exercisable before key decisions over material activities of 
the Sports JV are made such that joint control still applies.
The assessment whether joint control remains in place is reviewed at each reporting period.
Accounting policies adopted by the Sports JV
The Sports JV has a financial year-end of 31 July and has not yet prepared its first set of audited financial statements. In order to 
recognise our share of the Sports JV’s results for our equity-accounted investment, we have prepared the Sports JV’s financial 
information disclosed below based on management accounts for the period ending 31 March 2024 after making certain adjustments 
to comply with IFRS.
Significant judgements made in preparing the Sports JV’s financial information:
– IFRS 3 acquisition accounting should be applied by the Sports JV over the business combination achieved through the transfer of 
the BT Sport and Eurosport UK businesses from BT and WBD respectively, recognising acquired intangibles on the current and 
future value of programme rights, and goodwill.
– Revenues from the minimum guarantee in the Sports JV’s distribution agreement with BT should be adjusted to reflect a trading 
agreement on market terms with a separate financing arrangement for the off-market portion accounted for under IFRS 9 – this 
mirrors the accounting treatment applied by BT (see note 22).
– A and C preference shares issued by the Sports JV to BT should be classified as a financial liability at fair value through profit or loss 
under IFRS 9, as cash flows of the liability can be modified by both financial and non-financial factors that are not closely related to 
the instrument itself.
– Hedge accounting should be applied on the Sports JV’s forward contracts with BT (see note 30) with fair value movements on the 
derivatives recognised in other comprehensive income and held in the cash flow hedge reserve until recycle on settlement of the 
forward contracts.
– Programme rights should be recognised on the balance sheet from the point at which the licence period begins and are consumed 
by the Sports JV on a straight-line basis over the programming period which is generally 12 months. This is consistent with 
accounting policy applied in our previous BT Sport operations that have been transferred to the Sports JV.
Accounting policies in other areas are consistent with those applied by the group.
 Key accounting estimates made in accounting for the Sports JV
Valuation of investment in A preference shares
We expect the group’s A preference shares to be redeemed by the Sports JV for the distribution of cash to BT under our earn-out 
entitlement. BT’s return on the shares is driven by the underlying cash profit generation of the Sports JV and therefore have been 
classified as a fair value through profit or loss (FVTPL) financial asset under IFRS 9 and is remeasured to fair value at each reporting 
date.
The fair value recorded is supported by a jointly-agreed business plan and internal valuation model with the following key 
assumptions:
– Approximately 45% of revenues and 90% of costs during the remaining earn out period are contractually committed.
– Material contracts are renewed at an economic value no less than current terms.
– Total premium sports subscriber base does not materially grow or decline over the remaining earn-out period.
Ordinary equity shares
Our retained ordinary equity interest in the Sports JV is held under the equity method of accounting, consistent with our accounting policy 
on associates and joint ventures.
2024
2023
£m
£m
Carrying amount at 1 April
 
352  
414 
Share of total comprehensive loss for the year
 
(52)  
(62) 
Dividends received during the year
 
—  
— 
Carrying amount at 31 March
 
300  
352 
BT Group plc Annual Report 2024
203
Financial statements
24. Joint ventures and associates continued

As required by IAS 36, we have assessed the investment for impairment. There is no impairment at 31 March 2024 as the fair value less 
costs to sell is higher than the carrying amount of the investment. See below for sensitivities we have applied in determining the fair value 
less costs to sell.
The following is summarised and unaudited financial information for the Sports JV prepared in accordance with IFRS and including 
adjustments required to align with the group’s accounting policies and fair value adjustments.
2024
2023
Summarised statement of total comprehensive income for year ended 31 March
£m
£m
Revenue
 
918  
557 
Loss for the yeara
 
(82)  
(121) 
Other comprehensive loss
 
(22)  
(2) 
Total comprehensive loss
 
(104)  
(123) 
2024
2023b
Summarised balance sheet at 31 March
£m
£m
Current assetsc
 
863  
1,098 
Non-current assetsd
 
1,085  
1,286 
Current liabilitiese
 
(413)  
(702) 
Non-current liabilitiesf
 
(575)  
(618) 
Net assets
 
960  
1,064 
Attributable to fair value of BT’s A preference shares (see below)
 
(387)  
(429) 
BT’s share of residual net assets (50%)
 
287  
318 
Other fair value adjustments
 
13  
34 
Carrying amount of interest in Sports JV
 
300  
352 
a  Includes amortisation of £27m (FY23: £56m) on acquired intangibles; net finance income of £5m (FY23: £6m); and tax income of £57m (FY23: £17m) driven by current tax charge of 
£10m (FY23: £4m) offset by deferred tax credit of £67m (FY23: £21m).
b  Restated to reflect true-up to opening balance sheet from finalising fair value adjustments.
c  Includes cash and cash and cash equivalents of £11m (FY23: £11m).
d  Includes goodwill and acquired intangibles of £668m (FY23: £695m restated).
e  Includes current financial liabilities (excluding trade and other payables and provisions) of £(244)m (FY23: £(281)m) of which £(163)m (FY23: £(268)m) relates to the outstanding 
liability on the RCF provided by BT (see note 30).
f  Includes non-current financial liabilities (excluding trade and other payables and provisions) of £(305)m (FY23: £(416)m).
The Sports JV had a loss after tax for the year of £82m, after adjustments made to align with the group’s accounting policies, and reflects 
amortisation of acquired intangibles from the BT Sport and Eurosport UK business transfers and adjustments for the off-market minimum 
guarantee with BT (see note 22). Underlying trading before these adjustments was profitable. In addition, the Sports JV had other 
comprehensive losses of £22m relating to fair value movements on its foreign exchange hedging arrangement with the group (see note 
30) that have been designated as cash flow hedges.
Our share of the Sports JV’s results in FY23 included amortisation from provisional fair value adjustments, which were subject to true-up 
within 12 months from the Sports JV formation. We have subsequently finalised these fair value adjustments and recorded a £25m credit 
in the current year as a true-up to the amount recorded in FY23, of which our 50% share is £13m. The difference is not material and 
therefore we have not retrospectively adjusted our share of total comprehensive loss in FY23.
Preference shares
In addition to BT’s ordinary shareholding, BT held the following investments in preference shares in the Sports JV that have not been 
included within the equity-accounted interest above.
2024
2023
At 31 March
£m
£m
Investment in A preference shares
 
387  
429 
Investment in C preference shares
 
146  
126 
Total
 
533  
555 
A net £22m movement has been recorded on the group’s preference share investments relating to fair value changes only, see below for 
further details.
– A preference shares – a £42m fair value loss has been recognised through specific items (see note 9), largely driven by a reduction in 
forecast cash flows following the Sports JV’s investment in new sports content, leading to lower cash available for distribution under 
BT’s earn-out entitlement.
– C preference shares – these shares are expected to be sold to WBD at the end of BT’s earn-out entitlement in consideration for any 
sports rights funded by BT at that point. BT’s return on the shares is driven by changes in the Sports JV’s sports rights portfolio which in 
turn is dependent on changes in the wider sports rights market and the Sports JV’s financial performance and are therefore held as a 
financial asset at FVTPL under IFRS 9. A £20m fair value gain has been recognised through specific items (see note 9) driven by an 
expected growth in the Sports JV content portfolio, which will increase the payment to BT for pre-funded sports rights up to the end of 
BT’s earn-out entitlement.
The preference shares are held at Level 3 on the fair value hierarchy, reflecting a valuation methodology that does not use inputs based on 
observable market data – see note 23 for further details on the fair value hierarchy. See below for sensitivities we have applied in 
determining the fair value.
BT Group plc Annual Report 2024
204
Financial statements
Notes to the consolidated financial statements continued
24. Joint ventures and associates continued

Sensitivities
The group’s ordinary equity and preference share investments in the Sports JV, carry both upside and downside risk from changes in micro 
and macroeconomic factors affecting the sports content subscription market and risk appetite of investors in that market. Further, a key 
decision point in the next 12 months, relating to the renewal of a material customer contract, could significantly impact the value of our 
investments.
We have applied the following sensitivities to these risk factors:
– EBITDA decline from loss of revenue or improvement from outperformance against revised forecasts.
– Increase or decrease in the valuation multiple achieved.
– Increase or decrease in the discount rate applied.
Sensitivity
Fair value of A and C preference 
shares in Sports JV
Headroom on impairment test 
over equity-accounted 
investment
20% increase or decrease in EBITDA
+/- £112m
+/- £117m
10% increase or decrease in discount rate
+/- £4m
+/- £14m
10% change in valuation multiple
—
+/- £57m
None of these sensitivities generated an impairment on the group’s equity-accounted investment in the Sports JV.
In valuing our investments, we have assumed an exit after the earn-out period ends on the fourth anniversary of forming the Sports JV. 
However, an earlier exit would not have a material impact on the amounts recorded.
25. Cash and cash equivalents
 Material accounting policies that apply to cash and cash equivalents
Cash and cash equivalents comprise cash in hand and current balances with banks and similar institutions, which are readily 
convertible to cash, are subject to insignificant risk of changes in value and have an original maturity of three months or less. All are 
held at amortised cost on the balance sheet, equating to fair value. 
For the purpose of the consolidated cash flow statement, cash and cash equivalents are as defined above net of outstanding bank 
overdrafts. Bank overdrafts are included within the current element of loans and other borrowings (note 26).
2024
2023
At 31 March
£m
£m
Cash at bank and in hand
 
332  
336 
Cash equivalents
Indian rupee deposits
 
74  
55 
Other deposits
 
8  
1 
Total cash equivalents
 
82  
56 
Total cash and cash equivalents
 
414  
392 
Bank overdrafts (note 26)
 
(58)  
(11) 
Cash and cash equivalents per the cash flow statement
 
356  
381 
The majority of cash at bank balance was held at counterparties with a credit rating of A2/A or above. Cash and cash equivalents include 
restricted cash of £71m (FY23: £131m), of which £14m (FY23: £23m) was held in countries where local capital or exchange controls 
currently prevent us from accessing cash balances. The remaining balance of £57m (FY23: £108m) was held in escrow accounts, or in 
commercial arrangements akin to escrow.
BT Group plc Annual Report 2024
205
Financial statements
24. Joint ventures and associates continued

 Material accounting policies that apply to loans and other borrowings
We initially recognise loans and other borrowings at the fair value of amounts received net of transaction costs. They are 
subsequently measured at amortised cost using the effective interest method and, if included in a fair value hedge relationship, are 
re-valued to reflect the fair value movements on the associated hedged risk. The resulting amortisation of fair value movements, on 
de-designation of the hedge, is recognised in the income statement.
What’s our capital management policy?
Our capital management policy targets an overall level of debt consistent with our credit rating target of BBB+/Baa1 and minimum rating 
of BBB/Baa2 while investing in the business, supporting the pension scheme and meeting our distribution policy. To meet this objective, 
we may issue or repay debt, issue or repurchase shares or adjust dividends paid to shareholders. We manage the capital structure and 
make adjustments to it accordingly to reflect changes in economic conditions and the risk characteristics of the group. The Board 
regularly reviews the capital structure and capital management policy and no changes were made in FY24. For details of share issues and 
repurchases in the year see note 20.
Our capital structure consists of net debt and shareholders’ equity. The analysis below summarises the components which we manage as 
capital.
2024
2023
At 31 March
£m
£m
Net debt
 
19,479  
18,859 
Total parent shareholders’ equitya
 
12,513  
14,490 
Capital structure
 
31,992  
33,349 
a Excludes non-controlling interests of £5m (FY23: £24m).
Net debt and net financial debt
Net debt consists of loans and other borrowings, lease liabilities (both current and non-current) less current asset investments and cash 
and cash equivalents, including items which have been classified as held for sale on the balance sheet. Amounts due to joint ventures and 
loans and borrowings recognised in relation to monies received from the sale of cash flows of contract assets and as prepayment for the 
forward sale of redundant copper are excluded. Currency-denominated balances within net debt are translated to sterling at swap rates 
where hedged. Fair value adjustments and accrued interest applied to reflect the effective interest method are removed. We explain the 
rationale for using net debt as a key performance indicator, together with changes to the metric in FY24, in Additional Information on 
page 231.
Net financial debt is defined as net debt excluding lease liabilities.
Net debt and net financial debt are considered to be alternative performance measures as they are not defined in IFRS. The most directly 
comparable IFRS measure is the aggregate of loans and other borrowings and lease liabilities (current and non-current), current asset 
investments and cash and cash equivalents. A reconciliation from these IFRS measures to net debt and net financial debt is given below.
2024
2023
At 31 March
Notes
£m
£m
Loans and other borrowingsa
 
18,526  
18,521 
Lease liabilities
15
 
4,955  
5,359 
Assets and liabilities classified as held for saleb
22
 
—  
3 
Less:
Cash and cash equivalents
25
 
(414)  
(392) 
Current asset investments
23
 
(2,366)  
(3,548) 
 
20,701  
19,943 
Adjustments:
To retranslate debt balances at swap rates where hedged by currency swapsc
 
(512)  
(819) 
To remove accrued interest applied to reflect the effective interest method and fair value 
adjustments
 
(275)  
(254) 
Loans with joint ventures
30
 
(11)  
(11) 
Loans related to the forward sale of redundant copper
 
(106)  
— 
Loans related to sale of contract assets
 
(318)  
— 
Net debt
 
19,479  
18,859 
Lease liabilities
15
 
(4,955)  
(5,359) 
Lease liabilities classified as held for saleb
 
—  
(3) 
Net financial debt
 
14,524  
13,497 
a Includes overdrafts of £58m at 31 March 2024 (FY23: £11m).
b Refer to note 22. 
c The translation difference between spot rate and hedged rate of loans and borrowings denominated in foreign currency.
BT Group plc Annual Report 2024
206
Financial statements
Notes to the consolidated financial statements continued
26. Loans and other borrowings

The table below shows the key components of net debt and the increase of £620m this year.
At 31 March 
2023
Cash 
flows
Net lease 
additionsa
Foreign
exchange
Transfer to 
within one year
Other
movementsd
At 31 March 
2024
£m
£m
£m
£m
£m
£m
£m
Loans and other borrowings due within one yearb
 
1,772  (1,615)  
—  
(12)  
1,227  
23  
1,395 
Loans and other borrowings due after one year
 
16,749  1,800  
—  
(287)  
(1,227)  
96  
17,131 
Total loans and other borrowings
 
18,521  
185  
—  
(299)  
—  
119  
18,526 
Lease liabilities due within one year
 
800  
(882)  
—  
(1)  
849  
—  
766 
Lease liabilities due after one year
 
4,559  
—  
487  
(8)  
(849)  
—  
4,189 
Liabilities classified as held for sale
 
3  
—  
—  
—  
—  
(3)  
— 
Total lease liabilities
 
5,362  
(882)  
487  
(9)  
—  
(3)  
4,955 
Gross debt
 
23,883  
(697)  
487  
(308)  
—  
116  
23,481 
Less:
Impact of cross-currency swapsc
 
(819)  
—  
—  
307  
—  
—  
(512) 
Removal of the accrued interest and fair value 
adjustments
 
(264)  
—  
—  
—  
—  
(22)  
(286) 
Removal of loans with joint ventures
 
(11)  
(1)  
—  
—  
—  
1  
(11) 
Removal of loans related to the forward sale of 
redundant copper
 
—  
(105)  
—  
—  
—  
(1)  
(106) 
Removal of loans related to sale of cash flows 
related to contract assets
 
—  
(305)  
—  
—  
—  
(13)  
(318) 
Cash and cash equivalents
 
(392)  
(30)  
—  
8  
—  
—  
(414) 
Current asset investments
 
(3,548)  1,173  
—  
10  
—  
(1)  
(2,366) 
Removal of accrued interest
 
10  
—  
—  
—  
—  
1  
11 
Net debt
 
18,859  
35  
487  
17  
—  
81  
19,479 
At 31 March 
2022
Cash 
flows
Net lease 
additionsa
Foreign 
exchange
Transfer to 
within one year
Other 
movementsd
At 31 
March 2023
£m
£m
£m
£m
£m
£m
£m
Loans and other borrowings due within one yearb
 
873  
(136)  
—  
65  
943  
27  
1,772 
Loans and other borrowings due after one year
 
15,312  1,746  
—  
525  
(943)  
109  
16,749 
Total loans and other borrowings
 
16,185  1,610  
—  
590  
—  
136  
18,521 
Lease liabilities due within one year
 
795  
(860)  
—  
2  
863  
—  
800 
Lease liabilities due after one year
 
4,965  
—  
449  
11  
(863)  
(3)  
4,559 
Liabilities classified as held for sale
 
2  
—  
—  
—  
—  
1  
3 
Total lease liabilities
 
5,762  
(860)  
449  
13  
—  
(2)  
5,362 
Gross debt
 
21,947  
750  
449  
603  
—  
134  
23,883 
Less:
Impact of cross-currency swapsc
 
(234)  
—  
—  
(585)  
—  
—  
(819) 
Removal of the accrued interest and fair value 
adjustments
 
(251)  
—  
—  
—  
—  
(13)  
(264) 
Removal of loans with joint ventures
 
—  
(11)  
—  
—  
—  
—  
(11) 
Cash and cash equivalents
 
(777)  
379  
—  
3  
—  
3  
(392) 
Current asset investments
 
(2,679)  
(885)  
—  
(21)  
—  
37  
(3,548) 
Removal of accrued interest
 
3  
—  
—  
—  
—  
7  
10 
Net debt
 
18,009  
233  
449  
—  
—  
168  
18,859 
a Net lease additions are net non-cash movements in lease liabilities during the period, and primarily comprise new and terminated leases, remeasurements of existing leases and lease 
interest charges. 
b Includes accrued interest and bank overdrafts.
c Translation of debt balances at swap rates where hedged by cross-currency swaps.
d Other movements include removal of accrued interest applied to reflect the effective interest rate method, removal of fair value adjustments and movements relating to held for sale 
assets and liabilities (see note 22).
BT Group plc Annual Report 2024
207
Financial statements
26. Loans and other borrowings continued

The table below shows how cash flows from gross debt of £(697)m (FY23: £750m) in the table above reconciles to the line items 
presented in the group cash flow statement on page 149:
2024
2023
At 31 March
£m
£m
Repayment of borrowings
 
(1,676)  
(513) 
Proceeds from bank loans and bonds
 
2,242  
2,203 
Cash flows from collateral (paid) received
 
(532)  
(17) 
Increase (decrease) in amounts owned to joint ventures
 
(1)  
11 
Change in bank overdrafta
 
47  
(74) 
Total loans and other borrowings cash flows - financing activities
 
80  
1,610 
Prepayment for the forward sale of copperb
 
105  
— 
Total loans and other borrowings cash flows - investing activities
 
105  
— 
Total loans and other borrowings cash flows
 
185  
1,610 
Payment of lease liabilities
 
(748)  
(727) 
Interest on lease liabilities paidc
 
(134)  
(133) 
Total lease liability cash flows - financing activities
 
(882)  
(860) 
Total gross debt cash flows
 
(697)  
750 
a Presented within cash and cash equivalents in the group cash flow statement. 
b In FY24 we received an upfront prepayment of £105m from entering into a forward agreement to sell copper granules created from surplus copper cables. As this is expected to be 
the only cash flow that occurs as part of this transaction the cash receipt has been included as a separate line within cash flows from investing activities in the group cash flow 
statement. The related liability is recognised on balance sheet within loans and other borrowings, see page 149.
c Presented within interest paid in the group cash flow statement. 
BT Group plc Annual Report 2024
208
Financial statements
Notes to the consolidated financial statements continued
26. Loans and other borrowings continued

The table below gives details of the listed bonds and other debt. 
 
2024
2023
At 31 March
£m
£m
0.875% €306m bond due September 2023a
 
—  
270 
4.5% $675m bond due December 2023a
 
—  
554 
1% €469m bond due June 2024a,d
 
—  
415 
1% €825m bond due November 2024a
 
708  
726 
3.50% £250m index linked bond due April 2025
 
575  
524 
0.5% €650m bond due September 2025a
 
557  
571 
1.75% €1,300m bond due March 2026a
 
1,112  
1,143 
1.5% €1,150m bond due June 2027a
 
991  
1,017 
2.75% €700m bond due August 2027a,f
 
601  
530 
2.125% €500m bond due September 2028a
 
431  
442 
5.125% $700m bond due December 2028a
 
561  
573 
5.75% £600m bond due December 2028
 
658  
669 
1.125% €750m bond due September 2029a
 
640  
657 
3.25% $1,000m bond due November 2029a
 
796  
812 
9.625% $2,670m bond due December 2030a (minimum 8.625%b)
 
2,166  
2,214 
3.75% €800m bond due February 2031a
 
704  
704 
3.125% £500m bond due November 2031
 
503  
503 
3.375% €500m bond due August 2032a
 
433  
445 
4.25% €850m bond due January 2033a
 
725  
— 
3.64% £330m bond due June 2033
 
339  
339 
1.613% £330m index linked bond due June 2033
 
394  
380 
6.375% £500m bond due June 2037
 
523  
523 
3.883% £330m bond due June 2039
 
340  
340 
1.739% £330m index linked bond due June 2039
 
394  
381 
5.75%  £450m bond due February 2041f
 
445  
347 
3.924% £340m bond due June 2042
 
350  
350 
1.774% £340m index linked bond due June 2042
 
406  
392 
2.08% JPY10,000m bond due February 2043a
 
52  
61 
3.625% £250m bond due November 2047
 
251  
250 
4.25% $500m bond due November 2049a
 
400  
408 
1.874% €500m hybrid bond due August 2080a,c
 
432  
443 
4.250% $500m hybrid bond due November 2081a,c
 
396  
404 
4.875% $500m hybrid bond due November 2081a,c
 
401  
409 
8.375% £700m hybrid bond due December 2083c
 
710  
— 
Total listed bonds
 
17,994  
17,796 
Loans related to the sale of cash flows related to contract assetse
 
341  
100 
Loans related to the forward sale of redundant copper
 
106  
— 
Other loans
 
27  
614 
Bank overdrafts (note 25)
 
58  
11 
Total other loans and borrowings
 
532  
725 
Total loans and other borrowings
 
18,526  
18,521 
a Designated in a cash flow hedge relationship.
b The interest rate payable on this bond attracts an additional 0.25% for rating category downgrade by either Moody’s or Standard & Poor’s to the group’s senior unsecured debt below 
A3/A– respectively. In addition, if Moody’s or Standard & Poor’s subsequently increase the ratings then the interest rate will be decreased by 0.25% for each rating category upgrade 
by either rating agency. In no event will the interest rate be reduced below the minimum rate reflected in the above table.
c Includes call options between 1.5 years and 7.5 years.
d Redeemed early in March 2024.
e Performance obligations have been substantially delivered to the customer in relation to these cash flows related to contract assets that have been sold but the right to receive cash 
is dependent on the group’s future performance in relation to airtime and so a financial liability has been recognised. The related cash flows have been included within financing 
activities in the cash flow statement. £318m of the liability relates to sales of cash flows related to contract assets in FY24 and so is removed from our net debt measure, the remaining 
£23m relates to sales in FY23.
f Increased the issue size on €700m bond due August 2027 by €100m in November 2023 and on £450m bond due February 2041 by £100m in December 2023 .
Unless previously designated in a fair value hedge relationship, all loans and other borrowings are carried on our balance sheet and in the 
table above at amortised cost. The fair value of listed bonds is £17,820m (FY23: £16,979m).
The fair value of our listed bonds is estimated on the basis of quoted market prices (Level 1).
The carrying amount of other loans and bank overdrafts equates to fair value due to the short maturity of these items (Level 3).
The interest rates payable on loans and borrowings disclosed above reflect the coupons on the underlying issued loans and borrowings 
and not the interest rates achieved through applying associated cross-currency and interest rate swaps in hedge arrangements.
During the period the group entered into a forward agreement to sell copper granules created from BT’s surplus copper cables. The right 
to receive cash is dependent on the initial buyer receiving payment from the end customer and so a financial liability of £106m including 
BT Group plc Annual Report 2024
209
Financial statements
26. Loans and other borrowings continued

accrued interest has been recognised. This should be the only cash flow that occurs as part of this transaction and so the cash receipt of 
£105m has been included in a separate line within investing activities in the cash flow statement.
Loans and other borrowings are analysed as follows:
2024
2023
At 31 March
£m
£m
Current liabilities
Listed bonds
 
996  
1,075 
Amounts owed to joint ventures
 
11  
11 
Other loans and bank overdraftsa
 
388  
686 
Total current liabilities
 
1,395  
1,772 
Non-current liabilities
Listed bonds
 
16,998  
16,722 
Other loans and bank overdraftsa
 
133  
27 
Total non-current liabilities
 
17,131  
16,749 
Total loans and other borrowings
 
18,526  
18,521 
a Includes collateral received on swaps of £15m (FY23: £557m). 
The carrying values disclosed in the above table reflect balances at amortised cost adjusted for accrued interest and fair value 
adjustments to the relevant loans or borrowings. These do not reflect the final principal repayments that will arise after taking account of 
the relevant derivatives in hedging relationships which are reflected in the table below. All borrowings as at 31 March 2024 were 
unsecured. 
The principal repayments of loans and borrowings at hedged rates amounted to £17,728m (FY23: £17,442m) and repayments fall due as 
follows:
2024
2023
Carrying
amount
Effect of 
hedging and
interest
Principal 
repayments at 
hedged rates
Carrying
amount
Effect of
hedging and
interest
Principal
repayments at 
hedged rates
At 31 March
£m
£m
£m
£m
£m
£m
Within one year, or on demand
 
1,395  
(258)  
1,137 
 
1,772  
(271)  
1,501 
Between one and two years
 
2,727  
(85)  
2,642 
 
1,165  
15  
1,180 
Between two and three years
 
431  
(24)  
407 
 
2,669  
(141)  
2,528 
Between three and four years
 
1,614  
29  
1,643 
 
404  
(33)  
371 
Between four and five years
 
2,282  
6  
2,288 
 
1,539  
(14)  
1,525 
After five years
 
10,107  
(496)  
9,611 
 
10,983  
(646)  
10,337 
Total due for repayment after more than one year  
17,161  
(570)  
16,591 
 
16,760  
(819)  
15,941 
Total repayments
 
18,556  
(828)  
17,728 
 
18,532  
(1,090)  
17,442 
Non cash adjustmentsa
 
(30) 
 
(11) 
Total loans and other borrowings
 
18,526 
 
18,521 
a Fair value adjustments and unamortised bond fees.
27. Finance expense and income
2024
2023
Year ended 31 March
£m
£m
Finance expense
Interest on:
Financial liabilities at amortised cost and associated derivatives
 
872  
753 
Lease liabilities
 
134  
133 
Derivatives
 
4  
9 
Fair value movements on derivatives not in a designated hedge relationship
 
(1)  
1 
Reclassification of cash flow hedge from other comprehensive income
 
38  
(21) 
Unwinding of discount on provisions and other payables
 
20  
14 
Total finance expense before specific items
 
1,067  
889 
Specific items (note 9)a
 
121  
5 
Total finance expense
 
1,188  
894 
a Includes £nil (FY23: £13m credit) reclassification of cash flow hedge from other comprehensive income.
BT Group plc Annual Report 2024
210
Financial statements
Notes to the consolidated financial statements continued
26. Loans and other borrowings continued

2024
2023
Year ended 31 March
£m
£m
Finance income
Interest on:
Bank deposits and cash equivalents
 
28  
16 
Investments held at amortised cost
 
140  
40 
Other finance income
 
13  
7 
Total finance income
 
181  
63 
2024
2023
Year ended 31 March
£m
£m
Net finance expense before specific items
 
886  
826 
Specific items (note 9)
 
121  
5 
Net finance expense
 
1,007  
831 
28. Financial instruments and risk management
We issue or hold financial instruments mainly to finance our operations; to finance corporate transactions such as share buybacks and 
acquisitions; for the temporary investment of short-term funds; and to manage currency and interest rate risks. In addition, various 
financial instruments, for example trade receivables and payables arise directly from operations.
How do we manage financial risk?
Our activities expose us to a variety of financial risks: market risk (including interest rate risk and foreign exchange risk), credit risk and 
liquidity risk.
Treasury operation
We have a centralised treasury operation whose primary role is to manage liquidity and funding requirements as well as our exposure to 
associated market risks, and credit risk.
Treasury policy
Treasury policy is set by the Board. Group treasury activities are subject to a set of controls appropriate for the magnitude of borrowing, 
investments and group-wide exposures. The Board has delegated authority to operate these policies to a series of panels responsible for 
the management of key treasury risks and operations. Appointment to and removal from the key panels requires approval from two of the 
following: the Chairman, the Chief Executive or the Chief Financial Officer.
There has been no change in the nature of our risk profile between 31 March 2024 and the date of approval of these financial statements.
How do we manage interest rate risk?
Management policy
Interest rate risk arises primarily from our long-term borrowings. Interest cash flow risk arises from borrowings issued at variable rates, 
partially offset by cash held at variable rates. Fair value interest rate risk arises from borrowings issued at fixed rates.
Our policy, as set by the Board, is to ensure that at least 70% of ongoing net debt is at fixed rates. Short-term interest rate management is 
delegated to the treasury operation while long-term interest rate management decisions require further approval by the Chief Financial 
Officer, the Corporate Finance Director or the Group Treasury Director who each have been delegated such authority from the Board.
Hedging strategy
In order to manage our interest rate profile, we enter into cross-currency and interest rate swap agreements to vary the amounts and 
periods for which interest rates on borrowings are fixed. The duration of the swap agreements matches the duration of the debt 
instruments. The majority of the group’s long-term borrowings are subject to fixed sterling interest rates after applying the impact of 
these hedging instruments.
How do we manage foreign exchange risk?
Management policy
Foreign currency hedging activities protect the group from the risk that changes in exchange rates will adversely affect future net cash flows.
The Board’s policy for foreign exchange risk management defines the types of transactions typically covered, including significant 
operational, funding and currency interest exposures, and the period over which cover should extend for each type of transaction.
The Board has delegated short-term foreign exchange management to the treasury operation and long-term foreign exchange management 
decisions require further approval from the Chief Financial Officer, the Corporate Finance Director or the Group Treasury Director.
Hedging strategy
A significant proportion of our external revenue and costs arise within the UK and are denominated in sterling. Our non-UK operations 
generally trade and are funded in their functional currency which limits their exposure to foreign exchange volatility. We do not have a 
material exposure to hyperinflationary economies.
We enter into forward currency contracts to hedge foreign currency capital purchases, purchase and sale commitments, interest expense 
and foreign currency investments. The commitments hedged are principally denominated in US dollars, euros, Indian rupees and 
BT Group plc Annual Report 2024
211
Financial statements
27. Finance expense and income continued

Hungarian forints. As a result, our exposure to foreign currency arises mainly on non-UK subsidiary investments and on residual currency 
trading flows.
We use cross-currency swaps to swap foreign currency borrowings into sterling. The table below reflects the currency and interest rate 
profile of our loans and borrowings after the impact of hedging.
2024
2023
Fixed rate
 interest
Floating rate 
interest
Total
Fixed rate
 interest
Floating rate 
interest
Total
At 31 March
£m
£m
£m
£m
£m
£m
Sterling
 
15,899 
 
1,780 
 
17,679 
 
15,210 
 
1,773 
 
16,983 
Euro
 
— 
 
— 
 
— 
 
— 
 
443 
 
443 
Other
 
— 
 
49 
 
49 
 
— 
 
16 
 
16 
Total
 
15,899 
 
1,829 
 
17,728 
 
15,210 
 
2,232 
 
17,442 
Ratio of fixed to floating
 90% 
 10% 
 100% 
 87% 
 13% 
 100% 
Weighted average effective fixed 
interest rate – sterling
 4.6% 
 4.0% 
The floating rate loans and borrowings and committed facilities bear interest rates fixed in advance for periods up to one year, primarily by 
reference to RPI, CPI and ARRs where applicable.
Sensitivity analysis
The income statement and shareholders’ equity are exposed to volatility arising from changes in interest rates, foreign exchange rates and 
energy prices. To demonstrate this volatility, management has concluded that the following are reasonable benchmarks for performing 
sensitivity analysis:
– For interest, a 1% increase in interest rates and parallel shift in yield curves across sterling, US dollar and euro currencies.
– For foreign exchange, a 10% strengthening of sterling against other currencies.
– For energy, a 10% increase in energy prices.
The impact on equity, before tax and excluding any impact related to retirement benefit plans, of a 1% increase in interest rates, 
a 10% strengthening of sterling against other currencies, and a 10% increase in energy prices is as detailed below:
2024
2023
At 31 March
£m
Increase
(reduce)
£m
Increase
(reduce)
Sterling interest rates
 
602  
579 
US dollar interest rates
 
(300)  
(371) 
Euro interest rates
 
(316)  
(284) 
Sterling strengthening
 
(142)  
(169) 
Energy prices
 
27  
45 
A 1% decrease in interest rates, 10% weakening of sterling against other currencies would have broadly the same impact in the opposite 
direction.
The impact of a 1% change in interest rates on the group’s annual net finance expense, 10% change in energy prices on group’s income 
statement and our exposure to foreign exchange volatility in the income statement, after hedging (excluding translation exposures), 
would not have been material in FY24 and FY23.
Credit ratings
We continue to target a BBB+/Baa1 credit rating over the cycle, with a BBB/Baa2 floor. We regularly review the liquidity of the group and 
our funding strategy takes account of medium-term requirements. These include the pension deficit and shareholder distributions.
Our December 2030 bond contains terms that require us to pay higher rates of interest when our credit ratings are below A3 in the case of 
Moody’s or A– in the case of Standard & Poor’s (S&P). Additional interest of 0.25% per year accrues for each ratings category downgrade 
by each agency below those levels effective from the next coupon date following a downgrade. Based on the total notional value of debt 
outstanding of £2.1bn at 31 March 2024, our finance expense would increase/decrease by approximately £11m a year if the group’s 
credit rating were to be downgraded/upgraded, respectively, by one credit rating category by both agencies.
Our credit ratings were as detailed below:
At 31 March
2024
2023
Rating
Outlook
Rating
Outlook
Rating agency
Fitch
BBB
Stable
BBB
Stable
Moody’s
Baa2
Stable
Baa2
Stable
Standard & Poor’s
BBB
Stable
BBB
Stable
BT Group plc Annual Report 2024
212
Financial statements
Notes to the consolidated financial statements continued
28. Financial instruments and risk management continued

How do we manage liquidity risk?
Management policy
We maintain liquidity by entering into short and long-term financial instruments to support operational and other funding requirements, 
determined by using short- and long-term cash forecasts. These forecasts are supplemented by a financial headroom analysis which is 
used to assess funding adequacy for at least a 12-month period. On at least an annual basis the Board reviews and approves the long-
term funding requirements of the group and on an ongoing basis considers any related matters. We manage refinancing risk by limiting 
the amount of borrowing that matures within any specified period and having appropriate strategies in place to manage refinancing needs 
as they arise. The maturity profile of our loans and borrowings at 31 March 2024 is disclosed in note 26. We have term debt maturities of 
£0.7bn in FY25.
Our treasury operation reviews and manages our short-term requirements within the parameters of the policies set by the Board. We hold 
cash, cash equivalents and current investments in order to manage short-term liquidity requirements. At 31 March 2024 we had undrawn 
committed borrowing facilities of £2.1bn (FY23: £2.1bn) maturing in March 2027. 
The following table provides an analysis of the remaining cash flows including interest payable for our non-derivative financial liabilities on 
an undiscounted basis, which may therefore differ from both the carrying value and fair value.
Non-derivative financial liabilities
Loans and other
borrowings
Interest on loans
and other borrowings
Trade and
other
payablesc
Lease 
liabilities
Provisionsd
Total
At 31 March 2024
£m
£m
£m
£m
£m
£m
Due within one year
 
1,103  
738  
5,438  
765  
—  
8,044 
Between one and two years
 
2,727  
737  
189  
730  
—  
4,383 
Between two and three years
 
431  
697  
88  
696  
—  
1,912 
Between three and four years
 
1,614  
680  
—  
663  
—  
2,957 
Between four and five years
 
2,282  
649  
—  
634  
—  
3,565 
After five years
 
10,107  
2,569  
—  
2,103  
—  
14,779 
 
18,264  
6,070  
5,715  
5,591  
—  
35,640 
Interest payments not yet accrued
 
—  
(5,778)  
—  
—  
—  
(5,778) 
Fair value adjustment
 
(30)  
—  
—  
—  
—  
(30) 
Impact of discounting
 
—  
—  
(16)  
(636)  
—  
(652) 
Carrying value on the balance sheeta,b
 
18,234  
292  
5,699  
4,955  
—  
29,180 
At 31 March 2023 (restated)c
Due within one year
 
1,512  
643  
5,467  
800  
3  
8,425 
Between one and two yearsc
 
1,165  
637  
204  
774  
2  
2,782 
Between two and three yearsc
 
2,669  
616  
189  
676  
2  
4,152 
Between three and four yearsc
 
404  
575  
88  
640  
2  
1,709 
Between four and five years
 
1,539  
558  
—  
612  
2  
2,711 
After five years
 
10,983  
2,891  
—  
2,529  
—  
16,403 
 
18,272  
5,920  
5,948  
6,031  
11  
36,182 
Interest payments not yet accrued
 
—  
(5,660)  
—  
—  
—  
(5,660) 
Fair value adjustment
 
(11)  
—  
—  
—  
—  
(11) 
Impact of discounting
 
—  
—  
(32)  
(672)  
(1)  
(705) 
Carrying value on the balance sheeta,b,c
 
18,261  
260  
5,916  
5,359  
10  
29,806 
a Foreign currency-related cash flows were translated at closing foreign exchange rates as at the relevant reporting date. Future variable interest cash flows were calculated using the 
most recent interest or indexation rates at the relevant balance sheet date.
b The carrying amount of trade and other payables excludes £366m (FY23: £455m) of non-current trade and other payables which relates to non-financial liabilities, and £899m 
(FY23: £1,113m) of other taxation, social security and deferred income.
c FY23 comparatives have been restated to include the financial liability for the minimum guarantee provided to the Sports JV due in more than one year, totalling £465m.These 
amounts had been omitted from this table within the prior year accounts.
d No provisions meeting the definition of a financial liability have been identified in FY24.
Trade and other payables are held at amortised cost. The carrying amount of these balances approximates to fair value due to the short 
maturity of amounts payable.
BT Group plc Annual Report 2024
213
Financial statements
28. Financial instruments and risk management continued

The following table provides an analysis of the contractually agreed cash flows in respect of the group’s derivative financial instruments. 
Cash flows are presented on a net or gross basis in accordance with settlement arrangements of the instruments.
Derivative financial liabilities
Net settled
Gross settled
outflows
Gross settled
inflows
Total
At 31 March 2024
£m
£m
£m
£m
Due within one year
 
17  
2,274  
(2,135)  
156 
Between one and two years
 
16  
1,152  
(1,028)  
140 
Between two and three years
 
16  
519  
(430)  
105 
Between three and four years
 
17  
1,935  
(1,857)  
95 
Between four and five years
 
17  
597  
(528)  
86 
After five years
 
12  
3,071  
(2,866)  
217 
Totala,b
 
95  
9,548  
(8,844)  
799 
At 31 March 2023
Due within one year
 
47  
2,184  
(2,088)  
143 
Between one and two years
 
47  
1,125  
(1,058)  
114 
Between two and three years
 
94  
939  
(882)  
151 
Between three and four years
 
111  
381  
(364)  
128 
Between four and five years
 
16  
161  
(135)  
42 
After five years
 
47  
2,127  
(2,011)  
163 
Totala,b
 
362  
6,917  
(6,538)  
741 
a Analysed by earliest payment date, certain derivative financial instruments contain break clauses whereby either the group or bank counterparty have the right to terminate the swap 
on certain dates. If the break clause was exercised, the mark to market position would be settled in cash.
b Foreign currency-related cash flows were translated at closing foreign exchange rates as at the relevant reporting date. Future variable interest rate cash flows were calculated using 
the most recent rate applied at the relevant balance sheet date.
BT Group plc Annual Report 2024
214
Financial statements
Notes to the consolidated financial statements continued
28. Financial instruments and risk management continued

How do we manage energy price risk?
Management policy
UK (excluding Northern Ireland) and European energy prices continue to be exposed to volatility driven by fears of reduced gas supply as 
Europe continues the shift from Russian gas to LNG and renewables (which themselves are subject to short-term fluctuations given their 
intermittent nature). In order to manage our exposure to fluctuating energy prices, we have a target for UK (excluding Northern Ireland) 
energy demand to be at least 80% hedged one quarter before the start of the next financial year, and 50% hedged for the following 
financial year. We achieve this through forward over the counter hedges and a mixture of new and existing power purchase agreements 
(PPAs) and derivative virtual PPAs (vPPAs).
Hedging strategy
In each financial year our strategy is to build on our existing PPA and vPPA portfolio, exploring opportunities with 5-10 year contracts 
delivering favourable net present values. We complement this by monitoring the markets and forward purchasing electricity (power) 
when the market is favourable. In the forthcoming financial year the aim is to be 95% hedged, which allows for headroom for increased 
outputs from the renewable sources should weather conditions prevail.
How do we manage credit risk?
Management policy
Our exposure to credit risk arises from financial assets transacted by the treasury operation (primarily derivatives, investments, cash and 
cash equivalents) and from trading-related receivables.
For treasury-related balances, the Board’s defined policy restricts exposure to any one counterparty by setting credit limits based on the 
credit quality as defined by Moody’s and Standard & Poor’s. The minimum credit ratings permitted with counterparties in respect of new 
transactions are A3/A– for long-term and P1/A1 for short-term investments. If counterparties in respect of existing transactions fall 
below the permitted criteria we will take action where appropriate.
The treasury operation continuously reviews the limits applied to counterparties and will adjust the limit according to the nature and credit 
standing of the counterparty, and in response to market conditions, up to the maximum allowable limit set by the Board.
Operational management policy
Our credit policy for trading-related financial assets is applied and managed by each of the customer-facing units (CFUs) to ensure 
compliance. The policy requires that the creditworthiness and financial strength of customers are assessed at inception and on an ongoing 
basis. Payment terms are set in accordance with industry standards. Where appropriate, we may minimise risks by requesting securities 
such as deposits, guarantees and letters of credit. We take proactive steps including constantly reviewing credit ratings of counterparties 
to minimise the impact of adverse market conditions on trading-related financial assets.
Exposures
The maximum credit risk exposure of the group’s financial assets at the balance sheet date is as follows:
2024
2023
At 31 March
Notes
£m
£m
Derivative financial assets
 
1,070  
1,479 
Investments
23
 
2,395  
3,577 
Trade and other receivablesa
16
 
2,224  
1,821 
Contract assets
5
 
1,740  
1,934 
Cash and cash equivalents
25
 
414  
392 
Total
 
7,843  
9,203 
a  The carrying amount excludes £641m (FY23: £503m) of non-current trade and other receivables which relate to non-financial assets, and £1,341m (FY23: £1,239m) of 
prepayments, deferred contract costs, finance lease receivables and other assets.
The credit quality and credit concentration of cash equivalents, current asset investments and derivative financial assets are detailed in 
the tables below. Where the opinion of Moody’s and Standard & Poor’s (S&P) differ, the lower rating is used.
Moody’s/S&P credit rating of counterparty
2024
2023
£m
£m
Aa2/AA and above
 
1,823  
3,498 
Aa3/AA–
 
585  
115 
A1/A+
 
819  
957 
A2/A
 
261  
400 
A3/A–
 
—  
53 
Baa1/BBB+
 
—  
— 
Baa2/BBB and belowa
 
30  
60 
Totalb
 
3,518  
5,083 
a Baa2/BBB rated exposure represents the energy derivatives and carrying value of forward currency contracts with Sports JV.
b We hold cash collateral of £15m (FY23: £557m) in respect of derivative financial assets with certain counterparties, this has reduced during the year as a result of derivative portfolio 
management.
The concentration of credit risk for our trading balances is provided in note 16, which analyses outstanding balances by CFU. Where multiple 
transactions are undertaken with a single financial counterparty or group of related counterparties, we enter into netting arrangements to reduce 
our exposure to credit risk by making use of standard International Swaps and Derivatives Association (ISDA) documentation. We have also 
entered into credit support agreements with certain swap counterparties whereby, on a daily, weekly and monthly basis, the fair value position on 
notional £1,047m (FY23: £2,024m) of long-dated cross-currency swaps and interest rate swaps is collateralised.
BT Group plc Annual Report 2024
215
Financial statements
28. Financial instruments and risk management continued

Offsetting of financial instruments
The table below shows our financial assets and liabilities that are subject to offset in the group’s balance sheet and the impact of 
enforceable master netting or similar agreements.
Financial assets and liabilities
Related amounts not set off in the balance sheet
Amounts presented in the 
balance sheet
Right of set off with derivative 
counterparties
Cash
collateral
Net
amount
At 31 March 2024
£m
£m
£m
£m
Derivative financial assets
 
1,070  
(356)  
(15)  
699 
Derivative financial liabilities
 
(539)  
356  
40  
(143) 
Total
 
531  
—  
25  
556 
At 31 March 2023
Derivative financial assets
 
1,479  
(323)  
(557)  
599 
Derivative financial liabilities
 
(383)  
323  
48  
(12) 
Total
 
1,096  
—  
(509)  
587 
Derivatives and hedging
We use derivative financial instruments mainly to reduce exposure to foreign exchange and interest rate risks. Derivatives may qualify as 
hedges for accounting purposes if they meet the criteria for designation as cash flow hedges or fair value hedges in accordance with IFRS 9.
 Material accounting policies that apply to derivatives and hedge accounting
All of our derivative financial instruments are held at fair value on the balance sheet.
Derivatives designated in a cash flow hedge
The group designates certain derivatives in a cash flow hedge relationship. Where derivatives qualify for hedge accounting, 
recognition of any resultant gain or loss depends on the nature of the hedge. To qualify for hedge accounting, hedge documentation 
must be prepared at inception, the hedge must be in line with BT’s risk management strategy and there must be an economic 
relationship based on the currency, amount and timing of the respective cash flows of the hedging instrument and hedged item. This 
is assessed at inception and in subsequent periods in which the hedge remains in operation. Hedge accounting is discontinued when 
it is no longer in line with BT’s risk management strategy or if it no longer qualifies for hedge accounting. 
The group targets a one-to-one hedge ratio. The economic relationship between the hedged item and the hedging instrument is 
assessed on an ongoing basis. Ineffectiveness can arise from subsequent change in the forecast transactions as a result of altered 
timing, cash flows or value.
When a derivative financial instrument is designated as a hedge of the variability in cash flows of a recognised asset or liability, or a 
highly probable transaction, the effective part of any gain or loss on the derivative financial instrument is recognised directly in 
equity. For cash flow hedges of recognised assets or liabilities, the associated cumulative gain or loss is removed from equity and 
recognised in the same line of the income statement and in the same period or periods that the hedged transaction affects the 
income statement. Any ineffectiveness arising on a cash flow hedge is recognised immediately in the income statement.
Other derivatives
Our policy is not to use derivatives for trading purposes. However, due to the complex nature of hedge accounting, some derivatives 
may not qualify for hedge accounting, or may be specifically not designated as a hedge because natural offset is more appropriate. 
We effectively operate a process to identify any embedded derivatives within revenue, supply, leasing and financing contracts, 
including those relating to inflationary features. These derivatives are classified as fair value through profit and loss and are 
recognised at fair value. Any direct transaction costs are recognised immediately in the income statement. Gains and losses on re-
measurement are recognised in the income statement in the line that most appropriately reflects the nature of the item or 
transaction to which they relate.
Where the fair value of a derivative contract at initial recognition is not supported by observable market data and differs from the 
transaction price, a day one gain or loss will arise which is not recognised in the income statement. Such gains and losses are deferred 
and amortised to the income statement based on the remaining contractual term and as observable market data becomes available.
The fair values of outstanding swaps and foreign exchange contracts are estimated using discounted cash flow models and market 
rates of interest and foreign exchange at the balance sheet date.
BT Group plc Annual Report 2024
216
Financial statements
Notes to the consolidated financial statements continued
28. Financial instruments and risk management continued

Current
asset
Non-current
asset
Current
liability
Non-current
liability
At 31 March 2024
£m
£m
£m
£m
Designated in a cash flow hedge
 
34  
947  
80  
383 
Other
 
16  
73  
14  
62 
Total derivatives
 
50  
1,020  
94  
445 
At 31 March 2023
Designated in a cash flow hedge
 
78  
1,330  
62  
255 
Other
 
4  
67  
24  
42 
Total derivatives
 
82  
1,397  
86  
297 
All derivative financial instruments are categorised at Level 2, with the exception of the energy contracts which are categorised at Level 3 
of the fair value hierarchy as defined in note 23.
Instruments designated in a cash flow hedge include interest rate swaps and cross-currency swaps hedging euro, US dollar and Japanese 
yen denominated borrowings. Forward currency contracts are taken out to hedge step up interest on currency denominated borrowings 
relating to the group’s 2030 US dollar bond. The hedged cash flows will affect the group’s income statement as interest and principal 
amounts are repaid over the remaining term of the borrowings (see note 26).
We hedge forecast foreign currency purchases, principally denominated in US dollars, euros, Indian rupees and Hungarian forints 12 
months forward with certain specific transactions hedged further forward. The related cash flows are recognised in the income statement 
over this period. 
All hedge relationships were fully effective in the period.
The amounts related to items designated as hedging instruments were as follows:
Hedged items
Notional 
principal
Asset
Liability
Balance in cash 
flow hedge 
related 
reserves 
(gain)/loss
Fair value 
(gain)/loss 
recognised in 
OCI
Amount 
recycled from 
cash flow 
hedge related 
reserves to P&L
At 31 March 2024
£m
£m
£m
£m
£m
£m
Sterling, euro, US dollar and Japanese yen 
denominated borrowingsa
 
13,583  
960  
(355)  
(213)  
464  
(361) 
Step up interest on the 2030 US dollar bondb
 
112  
—  
(2)  
(25)  
2  
4 
Foreign currency purchases, principally 
denominated in US dollars, euros, Indian rupees 
and Hungarian forintsc
 
1,308  
18  
(11)  
(12)  
15  
8 
Other, including energy contractsd
 
3  
(95)  
90  
161  
(7) 
Total cash flow hedges
 
15,003  
981  
(463)  
(160)  
642  
(356) 
Deferred tax
 
—  
—  
27 
Derivatives not in a designated hedge relationship
 
89  
(76)  
— 
Carrying value on the balance sheet
 
1,070  
(539)  
(133) 
At 31 March 2023
Sterling, euro, US dollar and Japanese yen 
denominated borrowingsa
 
12,888  
1,316  
(290)  
(316)  
(887)  
597 
Step up interest on the 2030 US dollar bondb
 
115  
—  
(2)  
(31)  
(8)  
6 
Foreign currency purchases, principally 
denominated in US dollars, euros, Indian rupees 
and Hungarian forintsc
 
1,211  
34  
(24)  
(35)  
(75)  
61 
Other, including energy contractsd
 
58  
(1)  
(64)  
(85)  
49 
Total cash flow hedges
 
14,214  
1,408  
(317)  
(446)  
(1,055)  
713 
Deferred tax
 
—  
—  
106 
Derivatives not in a designated hedge relationship
 
71  
(66)  
— 
Carrying value on the balance sheet
 
1,479  
(383)  
(340) 
a Sterling, euro, US dollar and Japanese yen denominated borrowings are hedged using cross-currency swaps and interest rate swaps. Amounts recycled to profit and loss are 
presented within finance expense. Range of hedged rates: sterling interest: 5.9%-6.0% (FY23: 5.9%-6.0%), euro FX: 1.12-1.29 (FY23: 1.11-1.29), US dollar FX: 1.28-1.80 
(FY23: 1.28-1.80), Japanese yen FX: 156.92 (FY23: 156.92).
b Step up interest on US dollar denominated borrowings are hedged using forward currency contracts. Amounts recycled to profit and loss are presented within finance expense. 
Range of hedged FX rates: 1.21-1.28 (FY23: 1.17-1.24).
c Foreign currency purchases, principally denominated in US dollars, euros, Indian rupees and Hungarian forints are hedged using forward currency contracts. Amounts recycled to 
profit and loss are presented within cost of sales or operating costs, in line with the underlying hedged item. Range of hedged FX rates: US dollar: 1.21-1.30 (FY23: 1.10-1.31), 
euro: 1.12-1.17 (FY23: 1.11-1.18), Indian rupees: 106.05-120.97 (FY23: 106.05-120.97), Hungarian forint: 458.35-467.81 (FY23: 489.17-503.51).
d Includes £(87)m liability (FY23: £57m asset) relating to energy contracts, these are hedged using contracts for difference and virtual power purchase agreements in order to provide 
long-term power cost certainty. Amounts recycled to profit and loss are presented within operating costs. Range of strike price: 60-122 £/MWh (FY23: 60-125 £/MWh).
BT Group plc Annual Report 2024
217
Financial statements
28. Financial instruments and risk management continued

Other comprehensive income
Capital
redemption
reserve
Cash flow
reservea
Fair valueb
reserve
Cost of
hedging
reservec
Translation
reserved
Total
£m
£m
£m
£m
£m
£m
At 1 April 2022
 
27  
(148)  
(1)  
236  
505  
619 
Reclassificatione
 
—  
472  
—  
(472)  
—  
— 
Exchange differencesf
 
—  
—  
—  
—  
89  
89 
Net fair value gain (loss) on cash flow hedges
 
—  
864  
—  
191  
—  
1,055 
Movements in relation to cash flow hedges 
recognised in income and expenseg
 
—  
(721)  
—  
8  
—  
(713) 
Fair value movement on assets at fair value 
through other comprehensive income
 
—  
—  
(3)  
—  
—  
(3) 
Tax recognised in other comprehensive income
 
—  
(90)  
—  
—  
—  
(90) 
At 31 March 2023
 
27  
377  
(4)  
(37)  
594  
957 
Exchange differencesf
 
—  
—  
—  
—  
(66)  
(66) 
Net fair value gain (loss) on cash flow hedges
 
—  
(661)  
—  
19  
—  
(642) 
Movements in relation to cash flow hedges 
recognised in income and expenseg
 
—  
349  
—  
7  
—  
356 
Tax recognised in other comprehensive income
 
—  
69  
—  
—  
9  
78 
Transfer to realised profit
 
—  
10  
12  
—  
11  
33 
At 31 March 2024
 
27  
144  
8  
(11)  
548  
716 
a The cash flow reserve is used to record the effective portion of the cumulative net change in the fair value of cash flow hedging instruments related to hedged transactions that have 
not yet occurred. The transfer to realised profit includes a deferred tax adjustment.
b The fair value reserve is used to record gains or losses on equity investments held at fair value through other comprehensive income. When these investments are disposed of any 
remaining gains or losses in other comprehensive income are transferred to retained earnings. 
c The cost of hedging reserve reflects the gain or loss on the portion excluded from the designated hedging instrument that relates to the currency basis element of our cross-currency 
swaps and forward points on certain foreign exchange contracts. It is initially recognised in other comprehensive income and accounted for similarly to gains or losses in the cash flow 
reserve.
d The translation reserve is used to record cumulative translation differences on the net assets of foreign operations. The cumulative translation differences are recycled to the income 
statement on disposal of the foreign operation.
e Reclassification on cash flow hedges in FY23 includes £472m reclassification from cash flow hedge reserve to cost of hedging reserve.
f Excludes £nil (FY23: £2m) of exchange differences in relation to retained earnings attributed to non-controlling interests.
g Movements in cash flow hedge-related reserves recognised in income and expense of £356m (FY23: £713m) include a net credit to other comprehensive income of £318m (FY23: 
charge of £679m) which have been reclassified to operating costs, and a net credit of £38m (FY23: charge of £34m) which have been reclassified to finance expense (see note 27).
30. Related party transactions
Key management personnel comprise Executive and Non-Executive Directors and members of the Executive Committee. Compensation 
of key management personnel is disclosed in note 6. 
Amounts paid to the group’s retirement benefit plans are set out in note 19.
Associates and joint ventures related parties include the Sports JV with Warner Bros formed during FY23 (see note 22). Sales of services 
to the Sports JV during FY24 were £33m (FY23: £23m), and purchases from the Sports JV were £299m (FY23: £176m) excluding £211m 
(FY23: £61m) additional payments made to settle the minimum guarantee liability (see note 17). The amount receivable from the Sports 
JV as at 31 March 2024 was £3m (FY23: 10m) and the amount payable to the Sports JV was £94m (FY23: £123m).
As part of the BT Sport transaction, the group has committed to providing the Sports JV with a sterling Revolving Credit Facility (RCF), up 
to a maximum for £300m, for short-term liquidity required by the Sports JV to fund its working capital and commitments to sports rights 
holders. Amounts drawn down by the Sports JV under the RCF accrue interest at a market reference rate, consistent with the group’s 
external short-term borrowings. The outstanding balance under the RCF of £163m (FY23: £268m) is treated as a loan receivable and held 
at amortised cost, see note 16. The capacity of the RCF is expected to reduce to £200m during FY25. There is also a loan payable to the 
Sports JV of £11m (FY23: £11m), see note 26.
The Sports JV has a foreign exchange hedging arrangement with the group to secure euros required to meet its commitments to certain 
sports rights holders; the group has external forward contracts in place to purchase the euros at an agreed sterling rate in order to mitigate 
its exposure to exchange risk. The group holds a £29m (FY23: £14m) derivative liability in respect of forward contracts provided to the 
Sports JV.
BT Group plc Annual Report 2024
218
Financial statements
Notes to the consolidated financial statements continued
29. Other reserves

Transactions from commercial trading arrangements with associates and joint ventures, including the Sports JV, are shown below:
2024
2023
At 31 March
£m
£m
Sales of services to associates and joint ventures
 
37  
29 
Purchases from associates and joint ventures
 
338  
216 
Amounts receivable from associates and joint ventures
 
5  
10 
Amounts payable to associates and joint ventures
 
95  
124 
Other related party transactions include a dividend received from a joint venture of £12m (FY23: £nil) and in the prior year the purchase of 
energy from an entity controlled by the BT Pension Scheme until FY24. FY23 total purchases were £13m and £1m was due to the other 
party as at 31 March 2023.
31. Financial commitments
Financial commitments as at 31 March 2024 include capital commitments of £1,049m (FY23: £1,480m) and device purchase 
commitments of £171m (FY23: £217m). 
TV programme rights commitments were transferred to the Sports JV formed with Warner Bros. Discovery (WBD) during FY23 (see note 
22). Both the group and WBD have guaranteed the Sports JV’s obligations under certain programme rights commitments; the fair value 
of these parent company guarantees is not material. 
Other than as disclosed below and in note 18, there were no contingent liabilities or guarantees at 31 March 2024 other than those arising 
in the ordinary course of the group’s business and on these no material losses are anticipated. We have insurance cover to certain limits for 
major risks on property and major claims in connection with legal liabilities arising in the course of our operations. Otherwise, the group 
generally carries its own risks.
Legal and regulatory proceedings
See note 18 for contingent liabilities associated with legal and regulatory proceedings.
BT Group plc Annual Report 2024
219
Financial statements
30. Related party transactions continued

We have re-presented certain FY23 comparatives to reflect changes to the methodology used to allocate certain shared costs, and the 
creation of our Business CFU. See note 1 for more details. 
The following disclosures are impacted by the creation of the Business unit only. Re-presentation of prior year comparatives is limited to 
the combination of the balances previously reported in respect of the Enterprise and Global units, with no further adjustments: 
– Note 5 Revenue: disaggregation of external revenue 
– Note 7 Employees: number of employees
– Note 16 Trade and other receivables: trade receivables not past due and accrued income by CFU
Note 4 Segment information is also impacted by changes to the allocation of shared costs and therefore includes additional adjustments. 
The tables below present a bridge between previously published financial information and re-presented comparatives for the affected 
disclosures (segment revenue and profit; internal revenue and costs; and capital expenditure). 
Also presented is a bridge in respect of the CFU normalised free cash flow comparatives which are re-presented in the Additional 
information on page 231. 
Note 4 Segment information: Segment revenue and profit
Consumer
Enterprise
Global
Business
Openreach
Other
Total
Year ended 31 March 2023: published
£m
£m
£m
£m
£m
£m
£m
Segment revenue
 
9,737  
4,962  
3,328  
—  
5,675  
27  
23,729 
Internal revenue
 
(57)  
(113)  
—  
—  
(2,890)  
—  
(3,060) 
Adjusteda revenue from external customers
 
9,680  
4,849  
3,328  
—  
2,785  
27  
20,669 
Adjusted EBITDAb
 
2,623  
1,394  
458  
—  
3,449  
4  
7,928 
Depreciation and amortisationa
 (1,397)  
(842)  
(317)  
—  
(2,059)  
(138)  
(4,753) 
Adjusteda operating profit (loss)
 
1,226  
552  
141  
—  
1,390  
(134)  
3,175 
Year ended 31 March 2023: adjustments for creation of Business and change 
in cost allocation methodology 
Segment revenue
 
—  (4,962)  (3,328)  
8,258  
—  
—  
(32) 
Internal revenue
 
—  
113  
—  
(81)  
—  
—  
32 
Adjusteda revenue from external customers
 
—  (4,849)  (3,328)  
8,177  
—  
—  
— 
Adjusted EBITDAb
 
(154)  (1,394)  
(458)  
1,945  
61  
—  
— 
Depreciation and amortisationa
 
(206)  
842  
317  (1,047)  
94  
—  
— 
Adjusteda operating profit (loss)
 
(360)  
(552)  
(141)  
898  
155  
—  
— 
Year ended 31 March 2023: re-presented
Segment revenue
 
9,737  
—  
—  
8,258  
5,675  
27  
23,697 
Internal revenue
 
(57)  
—  
—  
(81)  
(2,890)  
—  
(3,028) 
Adjusteda revenue from external customers
 
9,680  
—  
—  
8,177  
2,785  
27  
20,669 
Adjusted EBITDAb
 
2,469  
—  
—  
1,945  
3,510  
4  
7,928 
Depreciation and amortisationa
 (1,603)  
—  
—  (1,047)  
(1,965)  
(138)  
(4,753) 
Adjusteda operating profit (loss)
 
866  
—  
—  
898  
1,545  
(134)  
3,175 
BT Group plc Annual Report 2024
220
Financial statements
Notes to the consolidated financial statements continued
32. Re-presentation of prior year comparatives

Note 4 Segment information: Internal revenue and costs
Internal cost recorded by
Consumer
Enterprise
Global
Business
Openreach
Other
Total
Year ended 31 March 2023: published
£m
£m
£m
£m
£m
£m
£m
Internal revenue recorded by
Consumer
 
—  
40  
16  
—  
—  
1  
57 
Enterprise
 
26  
—  
32  
—  
—  
55  
113 
Global
 
—  
—  
—  
—  
—  
—  
— 
Business
 
—  
—  
—  
—  
—  
—  
— 
Openreach
 
1,805  
888  
184  
—  
—  
13  
2,890 
Total
 
1,831  
928  
232  
—  
—  
69  
3,060 
Year ended 31 March 2023: adjustments for creation of Business and change 
in cost allocation methodology
Consumer
 
—  
(40)  
(16)  
56  
—  
—  
— 
Enterprise
 
(26)  
—  
(32)  
—  
—  
(55)  
(113) 
Global
 
—  
—  
—  
—  
—  
—  
— 
Business
 
26  
—  
—  
—  
—  
55  
81 
Openreach
 
—  
(888)  
(184)  
1,072  
—  
—  
— 
Total
 
—  
(928)  
(232)  
1,128  
—  
—  
(32) 
Year ended 31 March 2023: re-presented
Consumer
 
—  
—  
—  
56  
—  
1  
57 
Enterprise
 
—  
—  
—  
—  
—  
—  
— 
Global
 
—  
—  
—  
—  
—  
—  
— 
Business
 
26  
—  
—  
—  
—  
55  
81 
Openreach
 
1,805  
—  
—  
1,072  
—  
13  
2,890 
Total
 
1,831  
—  
—  
1,128  
—  
69  
3,028 
Note 4 Segment information: Capital expenditure
Consumer
Enterprise
Global
Business
Openreach
Other
Total
Year ended 31 March 2023: published
£m
£m
£m
£m
£m
£m
£m
Intangible assets
 
530  
257  
81  
—  
87  
63  
1,018 
Property, plant and equipment
 
663  
351  
171  
—  
2,709  
144  
4,038 
Capital expenditure
 
1,193  
608  
252  
—  
2,796  
207  
5,056 
Year ended 31 March 2023: adjustments for creation of Business and change 
in cost allocation methodology
Intangible assets
 
22  
(257)  
(81)  
361  
14  
(59)  
— 
Property, plant and equipment
 
6  
(351)  
(171)  
525  
37  
(46)  
— 
Capital expenditure
 
28  
(608)  
(252)  
886  
51  
(105)  
— 
Year ended 31 March 2023: re-presented
Intangible assets
 
552  
—  
—  
361  
101  
4  
1,018 
Property, plant and equipment
 
669  
—  
—  
525  
2,746  
98  
4,038 
Capital expenditure
 
1,221  
—  
—  
886  
2,847  
102  
5,056 
Additional information: Normalised free cash flow
Published
Adjustments for creation of 
Business and change in cost 
allocation methodology
Re-presented
Year ended March 2023
£m
£m
£m
Consumer
 
1,147  
(184)  
963 
Enterprise
 
522  
(522)  
— 
Global
 
63  
(63)  
— 
Business
 
—  
648  
648 
Openreach
 
211  
8  
219 
Other
 
(615)  
113  
(502) 
Normalised free cash flow
 
1,328  
—  
1,328 
33. Post balance sheet events
On 3 April 2024, BT issued a EUR 750m hybrid bond due on 3 October 2054 under our European Medium Term Note programme with a 
coupon of 5.125% until the first call date of 5.5 years.
BT Group plc Annual Report 2024
221
Financial statements
32. Re-presentation of prior year comparatives continued

2024
2023
At 31 March
Notes
£m
£m
Non-current assets
Investment in subsidiary undertaking
2
 
11,346  
11,278 
 
11,346  
11,278 
Current assets
Cash and cash equivalents
 
6  
8 
 
6  
8 
Current liabilities
Trade and other payablesa
 
53  
80 
 
53  
80 
Total assets less current liabilities
 
11,299  
11,206 
Non-current liabilities
Loans and other borrowingsb
 
400  
303 
Other payablesa
 
—  
26 
 
400  
329 
Equity
Ordinary shares
 
499  
499 
Share premium
 
1,051  
1,051 
Capital redemption reserve
 
27  
27 
Own shares
 
(311)  
(422) 
Profit and loss accountc
 
9,633  
9,722 
Total equity
 
10,899  
10,877 
 
11,299  
11,206 
a Current trade and other payables consists of loans from group undertakings of £13m (FY23: £15m) and other payables of £40m (FY23: £65m). Other payables mostly comprise the 
obligation to purchase own shares into trust via a forward contract.
b Loans and other borrowings consist of a loan from group undertakings of £400m (FY23: £303m). The loan attracts interest of SONIA plus 60 basis points (FY23: SONIA plus 60 basis 
points) and is not due within the 12 months after balance sheet date.
c  As permitted by Section 408(3) of the Companies Act 2006, no profit and loss account of the company is presented. The profit for the financial year, dealt with in the profit and loss 
account of the company was £734m (FY23: loss of £1m).
The financial statements of the company on pages 222 to 225 were approved by the Board of Directors on 15 May 2024 and were signed 
on its behalf by:
Adam Crozier 
Allison Kirkby 
Simon Lowth
Chairman 
Chief Executive 
Chief Financial Officer
BT Group plc Annual Report 2024
222
Financial statements
Financial statements of BT Group plc
BT Group plc company balance sheet
Registered number 4190816

Called up
share
capitala
Share
premium
account
Capital
redemption
reserve
Own sharesb
Profit
and loss
accountb,c
Total
£m
£m
£m
£m
£m
£m
At 1 April 2022
 
499  
1,051  
27  
(274)  
10,430  
11,733 
Loss for the year
 
—  
—  
—  
—  
(1)  
(1) 
Dividends paid
 
—  
—  
—  
—  
(753)  
(753) 
Share-based payments
 
—  
—  
—  
—  
3  
3 
Capital contribution in respect of 
share-based payments
 
—  
—  
—  
—  
77  
77 
Net buyback of own shares
 
—  
—  
—  
(148)  
(34)  
(182) 
At 31 March 2023
 
499  
1,051  
27  
(422)  
9,722  
10,877 
Profit for the year
 
—  
—  
—  
—  
734  
734 
Dividends paid
 
—  
—  
—  
—  
(757)  
(757) 
Share-based payments
 
—  
—  
—  
—  
3  
3 
Capital contribution in respect of 
share-based payments
 
—  
—  
—  
—  
68  
68 
Net buyback of own shares
 
—  
—  
—  
111  
(137)  
(26) 
At 31 March 2024
 
499  
1,051  
27  
(311)  
9,633  
10,899 
a The allotted, called up and fully paid ordinary share capital of the company at 31 March 2024 was £499m (31 March 2023: £499m), representing 9,968,127,681
(31 March 2023: 9,968,127,681) ordinary shares of 5p each.
b In FY24, 57,073,057 shares (FY23: 18,984,595) were issued from Own shares to satisfy obligations under employee share schemes and executive share awards at a cost of £113m 
(FY23: £38m). At 31 March 2024, 16,299,007 shares (FY23: 36,190,551) with an aggregate nominal value of £1m (FY23: £2m) were held at cost as treasury shares and 172,157,686 
shares (FY23: 193,798,578) with an aggregate nominal value of £9m (FY23: £10m) were held in the Trust.
c As permitted by Section 408(3) of the Companies Act 2006, no profit and loss account of the company is presented. The profit  for the financial year, dealt with in the profit and loss 
account of the company, was £734m (FY23: loss of £1m).
BT Group plc Annual Report 2024
223
Financial statements
BT Group plc company statement of changes in equity

 
Principal activity
The principal activity of the company is to act as the ultimate 
holding company of the BT Group.
Accounting basis
As used in these financial statements and associated notes, the 
term ‘company’ refers to BT Group plc (a public company limited 
by shares). These separate financial statements are prepared in 
accordance with Financial Reporting Standard 101 Reduced 
Disclosure Framework (FRS 101). In preparing these financial 
statements, the Company applies the recognition, measurement 
and disclosure requirements of UK-adopted international 
accounting standards, but makes amendments where necessary in 
order to comply with Companies Act 2006 and has set out below 
where advantage of the FRS 101 disclosure exemptions has been 
taken.
Financial statements
The financial statements are prepared on a going concern basis 
and under the historical cost convention. Refer to page 150 for 
further details of this assessment.
As permitted by Section 408(3) of the Companies Act 2006, the 
company’s profit and loss account has not been presented.
New and amended accounting standards effective during 
the year
The following amended standards were effective during the year, 
none of which had a material impact on the financial statements of 
the company.
IFRS 17 Insurance Contracts
BT adopted IFRS 17 with retrospective application on 1 April 2023. 
We have assessed the impact of the standard on the company, and 
concluded that its impact is not material. Contracts in scope of the 
standard are restricted to parent company guarantees, which we 
have assessed to have no material impact.
Disclosure of Accounting policies (Amendments to IAS 1 and 
IFRS Practice Statement 2)
These amendments require the disclosure of ‘material’ rather than 
‘significant’ accounting policies. The amendments have not 
resulted in any changes to accounting policies disclosures made in 
these financial statements. 
Definition of Accounting Estimate (Amendments to IAS 8)
The amendments introduce a new definition for accounting 
estimates.The amendments have not resulted in any changes to 
accounting policies disclosures made in these financial statements. 
Deferred Tax related to Assets and Liabilities arising from a 
Single Transaction (Amendments to IAS 12)
The amendments narrow the scope of the initial recognition 
exemption to exclude transactions that give rise to equal and 
offsetting temporary differences.The amendments have not 
resulted in any changes to accounting policies disclosures made in 
these financial statements. 
Exemptions
As permitted by FRS 101, the company has taken advantage of the 
disclosure exemptions available under that standard in relation to 
business combinations, share-based payments, non-current assets 
held for sale, financial instruments, capital management, and 
presentation of comparative information in respect of certain 
assets, presentation of a cash flow statement, standards not yet 
effective, impairment of assets and related party transactions. The 
company intends to continue to take advantage of these 
exemptions in future years. Further detail is provided below.
Where required, equivalent disclosures have been given in the 
consolidated financial statements of BT Group plc.
The BT Group plc consolidated financial statements for the year 
ended 31 March 2024 contain a consolidated cash flow statement. 
Consequently, as permitted by IAS 7 ‘Statement of Cash flow’, the 
company has not presented its own cash flow statement.
The BT Group plc consolidated financial statements for the year 
ended 31 March 2024 contain related party disclosures. 
Consequently, the company has taken advantage of the 
exemption in IAS 24 ‘Related Party Disclosures’ not to disclose 
transactions with other members of the BT Group. 
The BT Group plc consolidated financial statements for the year 
ended 31 March 2024 contain financial instrument disclosures 
which comply with IFRS 7 ‘Financial Instruments: Disclosures’. 
Consequently, the company is exempt from the disclosure 
requirements of IFRS 7 in respect of its financial instruments.
Investment in subsidiary undertaking
Investment in subsidiary undertaking is stated at cost and reviewed 
for impairment if there are indicators that the carrying value may 
not be recoverable. An impairment loss is recognised to the extent 
that the carrying amount cannot be recovered either by selling the 
asset or by continuing to hold the asset and benefiting from the net 
present value of the future cash flows (value in use) of the 
investment. 
Investment impairment is assessed at each reporting date. 
Estimating value in use and key assumptions used (discount rate 
and growth rate) in performing the impairment assessment are in 
line with how we assess the group’s goodwill in note 13 to the 
consolidated group financial statements. There is significant 
headroom between the carrying value of the investment and the 
calculated value in use. See Note 2 for further details. 
Taxation
Full provision is made for deferred taxation on all temporary 
differences which have arisen but not reversed at the balance 
sheet date. Deferred tax assets are recognised to the extent that it 
is regarded as more likely than not that there will be sufficient 
taxable profits from which the underlying timing differences can be 
deducted. The deferred tax balances are not discounted.
Dividends
Dividend distributions are recognised as a liability in the year in 
which the dividends are approved by the company’s shareholders 
for final dividends. Interim dividends are recognised when they are 
paid. Dividend income is recognised on receipt.
Share capital
Ordinary shares are classified as equity. Repurchased shares of the 
company are recorded in the balance sheet as part of Own shares 
and presented as a deduction from shareholders’ equity at cost.
Cash and cash equivalents
Cash and cash equivalents comprise cash in hand and current 
balances with banks and similar institutions, which are readily 
convertible to cash and are subject to insignificant risk of changes 
in value and have an original maturity of three months or less.
Share-based payments
The issuance by the company of share options and awards to 
employees of its subsidiaries represents additional capital 
contributions to its subsidiaries. An addition to the company’s 
investment in subsidiaries is recorded with a corresponding 
increase in equity shareholders’ funds. The additional capital 
contribution is determined based on the fair value of options and 
awards at the date of grant and is recognised over the vesting 
period.
BT Group plc Annual Report 2024
224
Financial statements
Notes to the company financial statements
1. BT Group plc accounting policies

Total
Cost
£m
At 1 April 2022
 
11,201 
Additions
 
77 
At 31 March 2023
 
11,278 
Additions
 
68 
At 31 March 2024
 
11,346 
The company held a 100% investment in BT Group Investments 
Limited, a company registered in England and Wales, throughout 
FY24 and FY23. Additions of £68m (FY23: £77m) comprise capital 
contributions in respect of share-based payments.
Investment impairment is assessed at each reporting date to 
evaluate if there are indicators that the carrying value may not be 
recoverable. As market capitalisation was less than the cost of 
investment at points during the year we have performed an 
impairment review. This was performed in line with the Group 
goodwill impairment review as detailed in Note 13 of the 
consolidated accounts. 
Our FY24 assessment concluded that there remains significant 
headroom between the carrying value of the investment and the 
calculated value in use of the investment. We have exercised a 
number of assumptions in determining the future cash flows, 
discount rate and growth rate to arrive at this conclusion.
Value in use is estimated by discounting future cash flows. Future 
cash flows  are calculated on a nominal basis and based on risk-
adjusted projections derived from the latest Board-approved five-
year financial plans, representing management's best risk-
adjusted estimate of future growth. This includes the direct and 
indirect impacts of inflation and associated mitigations. Plans 
reflect management’s expectations of revenue, EBITDA growth, 
capital expenditure, working capital and operating cash flows, 
based on past experience and future expectations of business 
performance, and form the basis of outlook issued by the group.   
The pre-tax discount rate used in performing the value in use 
calculation was 9.25%. The pre-tax discount rates applied to the 
cash flow forecasts are derived from our post-tax weighted 
average cost of capital. The assumptions used in the calculation of 
the group’s weighted average cost of capital are benchmarked to 
externally available data.
In FY24 we have used perpetuity growth rates averaging 0.8% as 
determined based on the long-term growth prospects of each 
market. The growth rates have been benchmarked against 
external data for the relevant markets and analysts’ expectations. 
None of the growth rates applied exceed the expected average 
long-term growth rates for those markets or sectors.
We consider there to be no reasonably possible scenario in which 
an impairment could occur within the next 12 months from the 
reporting date.
3. Other information
Dividends
An interim dividend of 2.31p per share amounting to £227m was 
paid on 2 February 2024 (FY23: interim dividend of 2.31p per 
share amounting to £226m paid). A final dividend of 5.69p per 
share amounting to approximately £553m is proposed in respect 
of the year ended 31 March 2024 (FY23: final dividend of 5.39p 
per share amounting to £530m paid in respect of the year ended 
31 March 2023).
Employees and directors
The Chairman and the Executive and Non-Executive Directors of 
BT Group plc were the only employees and directors of the 
company during FY24 and FY23. The costs relating to qualifying 
services provided to the company’s principal subsidiary, British 
Telecommunications plc, are recharged to that company. 
BT Group plc Annual Report 2024
225
Financial statements
2. Investment in subsidiary undertaking

Held directly
United Kingdom
1 Braham Street, London, E1 8EE, 
United Kingdom
BT Group Investments 
Limited
100%
ordinary
BT Group Nominees 
Limited
100%
ordinary
Held via other group companies
Algeria
20 Micro zone d’Activités Dar El Madina, Bloc B, 
Loc N01 Hydra, Alger, 16000, Algeria
BT Algeria 
Communications SARL
100%
ordinary
Argentina
Maipu No 1210, piso 8 (C1006), Buenos Aires, 
Argentina 
BT Argentina S.R.L.
100%
ordinary
Australia
Level 20, 420 George Street, Sydney, NSW 
2000, Australia
BT Australasia Pty 
Limited
100%
ordinary
 
100%
preference
Austria
Louis-Häfliger-Gasse 10, 1210, Wien, Austria
BT Austria GmbH
100%
ordinary
Azerbaijan
AZ 1025 The Azure Business Center, 20th Floor, c/
o BDO Azerbaijan LLC, Z1025, Khatai district, 
Afiyaddin Jalilov 26, apt.177, Azerbaijan
BT Azerbaijan Limited, 
Limited Liability 
Company
100%
ordinary
Bahrain
Suite #2216, Building No. 2504, Road 2832, Al 
Seef, P.O. BOX 18259, Bahrain
BT Solutions Limited 
(Bahrain Branch)b
100%
–
Bangladesh
UTC Building, 19th Floor, Kawran Bazar, Dhaka, 
1215, Bangladesh
BT Communications 
Bangladesh Limited
100%
ordinary
Barbados
3rd Floor, The Goddard Building, Haggatt Hall, 
St. Michael, BB11059, Barbados
BT (Barbados) Limited
100%
ordinary
Belarus
58 Voronyanskogo St, Office 89, Minsk 220007, 
Belarus
BT BELRUS Foreign 
Limited Liability 
Company
100%
ordinary
Belgium
Telecomlaan 9, 1831 Diegem, Belgium
BT Global Services 
Belgium BV
100%
ordinary
Global Security Europe 
Limited – Belgian 
Branchb
100%
–
Rue de L’Aêropostale 8, 4460 Grâce-Hollogne, 
Belgium
IP Trade SA
100%
ordinary
Company name
Group 
interest in 
allotted 
capitala
Share 
class
Bermuda
Century House, 16 Par-la-Ville Road, Hamilton, 
HM08, Bermuda
Communications 
Global Network 
Services Limited
100%
ordinary
Bolivia
Avda. 6 de Agosto N° 2700, Torre Empresarial 
CADECO, Piso 4, La Paz, Bolivia
BT Solutions Limited 
Sucursal Boliviab
100%
–
Bosnia and Herzegovina
Trg Heroja 10/1, Sarajevo, 71000, Bosnia and 
Herzegovina
BTIH Teleconsult 
Drustvo sa 
organicenom 
odgovornoscu za 
posredovanje i 
zastupanje d.o.o. 
Sarajevo
100%
–
Botswana
Plot 2482b, Tshekedi Crescent, Extension 9, 
Gaborone, 211008, Bontleng, Botswana
BT Global Services 
Botswana 
(Proprietary) Limited
100%
ordinary
Brazil
Avenida Dr. Ruth Cardoso, 4777 – 14 andar, 
Pinheiros, São Paulo, SP, 05477-000, Brazil
BT Communications 
do Brasil Limitada
100%
quotas
BT Global 
Communications do 
Brasil Limitada
100%
quotas
Bulgaria
51B Bulgaria Blvd., fl. 4, Sofia, 1404, Bulgaria
BT Bulgaria EOOD
100%
ordinary
BT Global Europe B.V. 
– Bulgaria branchb
 100 %
–
Canada
100 King Steet West, Suite 6200, 1 Canadian 
Place, Toronto ON M5X 1B8, Canada
BT Canada Inc.
100%
common
Chile
Rosario Norte 407, Piso 6, Las Condes, 
Santiago, Chile
Servicios de 
Telecomunicaciones 
BT Global Networks 
Chile Limitada
100%
ordinary
China
Building 16, 6th Floor, Room 602-B, No. 269 Wuyi 
Road, Hi-tech Park, Dalian, 116023, China
BT Technology (Dalian) 
Company Limited
100%
registered
No. 3 Dong San Huan Bei Lu, Chao Yang District, 
Beijing, 100027, China
BT Limited, Beijing 
Officeb
100%
–
Room 2101-2103, 21/F, International Capital 
Plaza, No. 1318 North Sichuan Road, Hong Kou 
District, Shanghai, 200080, China
BT China Limited- 
Shanghai Branch 
Officeb
100%
–
Company name
Group 
interest in 
allotted 
capitala
Share 
class
1502-1503, AVIC Center, No. 1008, Huafu Road, 
Futian District, Shenzhen, 518000, China
BT China Limited – 
Shenzhen Branchb
100%
–
Room 3, 4, F7, Tower W3, Oriental Plaza, 1 East 
Chang An Avenue, Dongcheng District, Beijing, 
100738, China
BT China Limited
100%
registered
Unit 1537B, Floor 15th, No. 55, Xili Road, 
Shanghai Free Trade Zone, Shanghai, China
BT China 
Communications 
Limited
50%
ordinary
Colombia
Calle 113, 7-21,Torre A Oficina 1015 Teleport 
Business, Bogota, Colombia
BT Colombia Limitada
100%
quotas
Costa Rica
Heredia-Belen La Ribera, Centro Corporativo El 
Cafeta, Edificio B, segundo piso, Oficinas de 
Deloitte, San José, Costa Rica
BT Global Costa Rica 
SRL
100%
ordinary
Côte d’Ivoire
Abidjan Plateau, Rue du commerce, Immeuble 
Nabil 1er étage, 01 BP 12721 Abidjan 01, Côte 
d’Ivoire
BT Cote D’Ivoire
100%
ordinary
Cyprus
Hadjianastassiou, Ioannides LLC, DELOITTE 
LEGAL, Maximos Plaza, Tower 3, 2nd Floor, 213 
Arch. Makariou III Avenue, Limassol, 3030, 
Cyprus
BT Solutions Limitedb
100%
–
Arch. Makarios III, 213, Maximos Plaza, Tower 3, 
Floor 2, Limassol, 3030, Cyprus
BT Global Europe B.V.b
100%
–
Czech Republic
Pujmanové 1753 / 10a, Nusle, 140 00, Prague 4, 
Czech Republic
BT Global Europe B.V., 
odštěpný závodb
100%
–
Denmark
Norre Farimagsgade 13, 4. th, 1364 Kobenhavn 
K, Denmark
BT Denmark ApS
100%
ordinary
Dominican Republic
Av. Abraham Lincoln Esq. Jose Amado Soler, Edif. 
Progresso, Local 3-A, Sector Ens. Serralles, Santo 
Domingo, Dominican Republic
BT Dominican 
Republic, S. A.
100%
ordinary
Ecuador
Av. Amazonas N21-252 y Carrión, Edificio 
Londres, 4° Piso, Quito, Ecuador
BT Solutions Limited 
(Sucursal Ecuador)b
100%
–
Egypt
Unit no. 306 Administrative Second Floor, 
Al Saraya Mall, Al Mehwar Al- Markazy, 
Giza, Egypt
BT Telecom Egypt LLC
100%
stakes
Company name
Group 
interest in 
allotted 
capitala
Share 
class
BT Group plc Annual Report 2024
226
Financial statements
Related undertakings

El Salvador
Edificio Avante Penthouse Oficina, 10-01 Y 
10-03 Urbanizacion, Madre Selva, Antiguo 
Cuscatlan, La Libertad, El Salvador
BT El Salvador, 
Limitada de Capital 
Variable
100%
ordinary
Finland
Mannerheimvägen 12 B 6, 00100 Helsinki, 
Finland
BT Nordics Finland Oy
100%
ordinary
France
Tour Ariane, 5 place de la Pyramide, La Defense 
Cedex, 92088, Paris, France
BT France S.A.S.
100%
ordinary
Germany
Barthstraße 4, 80339, Munich, Germany
BT (Germany) GmbH 
& Co. oHG
100%
ordinary
BT Deutschland GmbH
100%
ordinary
BT Garrick GmbH
100%
ordinary
Widdersdorfer Strasse 252, 50933, Cologne, 
Germany
Global Security Europe 
Limited – Germany 
Branchb
100%
–
Ghana
5th Floor, Vivo Place, Cantonments City, 
Rangoon Lane, P.O. Box MB 595, Accra, Ghana
BT Ghana Ltd
100%
ordinary
Greece
75 Patision Street, Athens, 10434, Greece
BT Solutions Limited-
Greek Branchb
100%
–
Guatemala
5ta avenida 5-55 zona 14, Edificio Europlaza 
World Business Center, Torre IV, nivel 7, oficina 
702, Guatemala City, Guatemala
BT Guatemala S.A.
100%
unique
Honduras
Colonia Florencia Norte, Edificio Plaza America, 
5to Piso, Tegucigalpa, Honduras
BT Sociedad De 
Responsabilidad 
Limitada
100%
–
Hong Kong
Unit 31-105, 31/F, Hysan Place, 500 Hennessy 
Road, Causeway Bay, Hong Kong
BT Hong Kong Limited
100%
ordinary
Infonet China Limited
100%
ordinary
Hungary
1112 Budapest, Boldizsár utca 4. , Hungary
BT Global Europe B.V. 
Magyarorszagi 
Fioktelepeb
100%
–
BT Limited 
Magyarorszagi 
Fioktelepeb
100%
–
BT ROC Kft
100%
business
Company name
Group 
interest in 
allotted 
capitala
Share 
class
India
11th Floor, Eros Corporate Tower, Opp. 
International Trade Tower, Nehru Place, New 
Delhi, 110019, India
BT (India) Private 
Limited
100%
ordinary
BT e-Serv (India) 
Private Limited
100%
equity
BT Global Business 
Services Private 
Limited
100%
ordinary
BT Global 
Communications India 
Private Limited
100%
ordinary
BT Telecom India 
Private Limited
100%
ordinary
A-47, Hauz Khas, New Delhi, Delhi-DL, 110016, 
India
Orange Services India 
Private Limited
100%
ordinary
Indonesia
Menara Astra, 37F. JI. Jendral Sudirman Kav 
5-6, Jakarta Pusat, Jakarta, 10220, Indonesia
PT BT Indonesia
100%
ordinary
PT BT 
Communications 
Indonesia
95%
ordinary
Isle of Man
Third Floor, St Georges Court, Upper Church 
Street, Douglas, IM1 1EE, Isle of Man
Belmullet Limited
100%
ordinary
Communicator 
Insurance Company 
Limited
100%
ordinary
Priestgate Limited
100%
ordinary
Israel
Beit Oz, 14 Abba Hillel Silver Rd, Ramat Gan, 
52506, Israel
B.T. Communication 
Israel Ltd
100%
ordinary
Italy
Via Mario Bianchini 15, 00142, Roma, Italy
BT Global Services 
Limitedb
100%
–
Via Tucidide 14, 20134, Milano, Italy 
Atlanet SpA
99%
ordinary
Basictel SpA
99%
ordinary
BT Italia S.p.A.
99%
ordinary
Jamaica
Suite #6, 9A Garelli Avenue , Half way tree, St. 
Andrew, Kingston 10, Jamaica
BT Jamaica Limited
100%
ordinary
Japan
ARK Mori Building, 12-32 Akasaka, 1-Chome, 
Minato-Ku, Tokyo, 107 – 6024, Japan
BT Japan Corporation
100%
ordinary
Jersey
26 New Street, St Helier, JE2 3RA, Jersey
Ilford Trustees (Jersey) 
Limited
100%
ordinary
PO Box 264, Forum 4, Grenville Street, St Helier, 
JE4 8TQ, Jersey
BT Jersey Limited
100%
ordinary
Company name
Group 
interest in 
allotted 
capitala
Share 
class
Jordan
Wadi AlSer – Dahiet Prince Rashid – King 
Abdullah Street , Building No. 391 – 3rd Floor, 
Jordan
BT (International) 
Holdings Limited 
(Jordan)
100%
ordinary
Kazakhstan
n.p.38b, Building 5, Kaiym Mukhamedkhanov 
Street, Nura District, Astana, Index 010000, 
Kazakhstan
BT Kazakhstan LLP
100%
–
Kenya
L R No, 1870/ 1/176, Aln House, Eldama Ravine 
close, off Eldama Ravine Road, Westlands, P O 
Box 764, Sarit Centre, Nairobi, 00606, Kenya
BT Communications 
Kenya Limited
70%
ordinary
Korea
Level 19, Hana Securities Building, 81, Uisadang-
daero, Yeongdeungpogu, Seoul, 07321, Republic 
of Korea
BT Global Services 
Korea Limited
100%
common
Latvia
Muitas iela 1A, Riga, LV-1010, Latvia
BT Latvia Limited, 
Sabiedriba ar 
ierobezotu atbildibu
100%
ordinary
Lebanon
Abou Hamad, Merheb, Nohra & Chedid Law 
Firm, Chbaro Street, 22nd Achrafieh Warde 
Building, 1st Floor, Beirut, P.O.BOX 165126, 
Lebanon
BT Lebanon S.A.L.
100%
ordinary
Lithuania
Aludariu str 2-33, LT-01113 Vilnius, Lithuania
UAB BTH Vilnius
100%
ordinary
Luxembourg
12 rue Eugene Ruppert, L 2453, Luxembourg
BT Global Services 
Luxembourg SARL
100%
ordinary
BT Broadband 
Luxembourg Sàrl
100%
ordinary
Malawi
KEZA Office Park Blocks 3, First Floor, Near 
Chichiri, Shopping Mall, Blantyre, Malawi
BT Malawi Limited
100%
ordinary
Malaysia
Level 5, Tower 3, Avenue 7, Bangsar South, 
No.8, Jalan Kerinchi, 59200 Kuala Lumpur, 
Malaysia
BT Global Technology 
(M) Sdn. Bhd.
100%
ordinary
BT Systems (Malaysia) 
Sdn Bhd
100%
ordinary
Malta
Level 1, LM Complex, Brewery Street, Zone 3, 
Central Business District, Birkirkara CBD, 3040, 
Malta
BT Solutions Limitedb
100%
–
Company name
Group 
interest in 
allotted 
capitala
Share 
class
BT Group plc Annual Report 2024
227
Financial statements

Mauritius
c/o Deloitte, 7th Floor Standard Chartered 
Tower, 19-21 Bank Street, Cybercity, Ebène, 
72201, Mauritius
BT Global 
Communications 
(Mauritius) Limited
100%
ordinary
Mexico
Boulevard Manuel Avila Camacho No. 32, 6th 
Floor, Lomas de Chapultepec III Section, Miguel 
Hidalgo, Mexico City CP11000
BT LatAm México, S.A. 
de C.V.
100%
common
Montenegro
Vasa Raickovica 4b, Podgorica, Podgorica, 
Montenegro
BT Montenegro DOO
100%
–
Morocco
Bd. Abdelmoumen, Immeuble Atrium, n 374, 
Lot. Manazyl Al Maymoune, 5eme etage, 
Casablanca, 20390, Morocco
BT Solutions Limited – 
Morocco Branchb
100%
–
Mozambique
Avenida Kenneth Kaunda, number 660, 
Sommershield, Maputo City, Mozambique
BT Mozambique, 
Limitada
100%
quotas
Namibia
Unit 3, 2nd floor, Ausspann Plaza, Dr Agostinho 
Neto Road, Ausspannplatz, Private Bag, 
Windhoek, 12012, Namibia 
BT Solutions Limitedb
100%
–
Netherlands
Herikerbergweg 2, 1101 CM, Amsterdam, 
Netherlands
BT Global Europe B.V.
100%
ordinary
BT (Netherlands) 
Holdings B.V.
100%
ordinary
BT Nederland N.V.
100%
ordinary
BT Professional 
Services Nederland B.V.
100%
ordinary
Global Security Europe 
Limitedb 
100%
–
New Zealand
c/o Deloitte, Level 18, 80 Queen Street, 
Auckland Central, Auckland, 1010, New Zealand
BT Australasia Pty 
Limited – New Zealand 
Branchb
100%
–
Nicaragua
De donde fué el Restaurante Marea Alta Ahora 
quesillos, El Pipe, 2 cuadras al este, 10 Metros al 
norte, frente al, Hotel El Gran Marquez, Casa #351, 
Nicaragua, 2815, Nicaragua
BT Nicaragua S.A.
100%
capital
Nigeria
Civic Towers, Plot GA1, Ozumba Mbadiwe 
Avenue, Victoria Island, Lagos, Nigeria
BT (Nigeria) Limited
100%
ordinary
Company name
Group 
interest in 
allotted 
capitala
Share 
class
North Macedonia
Str. Dame Gruev no.8, 5th floor, Building “Dom 
na voenite invalidi”, Skopje 1000, North 
Macedonia
BT Solutions Limited 
Branch Office in 
Skopjeb
100%
–
Norway
Munkedamsveien 45, Oslo, 0121, Norway
BT Solutions Norway AS
100%
ordinary
Oman
Maktabi Building, Building No. 458, Unit No. 413 
4th Floor, Road No – R41, Block No. 203, Plot No. 
107, Zone No. SW41, Complex No. 271, Al 
Watiyah, Bausher, Muscat, Sultanate of Oman, 
Oman
BT International 
Holdings Limited & Co. 
LLC
100%
ordinary
Pakistan
Cavish Court, A-35, Block 7&8, KCHSU, 
Shahrah-e-Faisal, Karachi, 75350, Pakistan
BT Pakistan (Private) 
Limited
100%
ordinary
Panama
50th and 74th Street, San Francisco, PH 909, 
15th and 16th Floor, Panama City, Panama
BT de Panama, S.R.L.
100%
ordinary
Paraguay
Av. Brasilia N° 767 casi Siria, Asunción, 
Paraguay
BT Paraguay S.R.L.
100%
quotas
Peru 
Av. La Mar 662 Of. 201 – Miraflores, Lima, Peru
BT Peru S.R.L.
100%
ordinary
Philippines
11th Floor, Page One Building, 1215 Acacia Ave 
Madrigal Business Park, Ayala Alabang, 
Muntinlupa, Metro Manila, 1780, Philippines
IT Holdings, Inc
100%
ordinary
40th Floor, PBCom Tower 6795, Ayala Avenue 
cor. Rufino St, Makati City, 1226, Philippines
BT Communications 
Philippines 
Incorporated
100%
ordinary
c/o Sun Microsystems Phil Inc., 8767 Paseo de 
Roxas, Makati City, Philippines
PSPI-Subic, Inc
51%
ordinary
Poland
126/134 Marszalkowska St., Room 128, 00-008, 
Warsaw, Poland
BT Poland Spółka Z 
Ograniczoną 
Odpowiedzialnością
100%
ordinary
Portugal
Rua D. Francisco Manuel de Melo 21-1, 
1070-085 Lisboa, Portugal
BT Portugal – 
Telecomunicaçöes, 
Unipessoal Lda
100%
ordinary
Puerto Rico
Corporation Service Company Puerto Rico Inc., c/
o RVM Professional Services LLC, A4 Reparto 
Mendoza, Humacao, 00791, Puerto Rico
BT Communications 
Sales, LLC Puerto Rico 
branchb
100%
–
Company name
Group 
interest in 
allotted 
capitala
Share 
class
Qatar
1413, 14th Floor, Al Fardan Office Tower, Doha, 
31316, Qatar
BT Global Services 
(North Gulf) LLC
49%
ordinary
Republic of Ireland
 BDO Block 3 Miesian Plaza, 50-58 Baggot 
Street Lower, Dublin 2, Dublin, D02 Y754, 
Ireland
BT Global 
Communications 
(Ireland) Limited
100%
ordinary
5th Floor, 2 Grand Canal Plaza, Upper Grand 
Canal Street, Dublin 4, Ireland
The Faraday 
Procurement 
Company Limited
100%
ordinary
2 Grand Canal Plaza, Upper Grand Canal 
Street, Dublin 4, Republic of Ireland
BT Communications 
Ireland Limited
100%
ordinary
BT Communications 
Ireland Group Limited
100%
ordinary
BT Communications 
Ireland Holdings 
Limited
100%
ordinary
Whitestream Industries 
Limited
100%
ordinary
Romania
Cladirea A1, Biroul Nr. 52, Nr 35-37, Str. 
Oltenitei, Sector 4, Bucharest, Romania
BT Global Services 
Limited Londra 
Sucursala Bucurestib
100%
–
Russia
Room 62, prem xx, Floor 2, Pravdy, 26, 127137, 
Moscow, Russian Federation
BT Solutions Limited 
Liability Company
100%
–
Serbia
Dimitrija Georgijevica Starike 20, Belgrade, 
11070, Serbia
BT Belgrade d.o.o
100%
ordinary
Sierra Leone
84 Dundas Street, Freetown, Sierra Leone
BT (SL) Limited
100%
ordinary
Singapore
Level 3, #03-01/02 & #03-04, Block B, 
Alexandra Technopark, 438B Alexandra Road, 
Singapore, 119968
BT (India) Private 
Limited Singapore 
Branchb
100%
–
BT Global Solutions 
Pte. Ltd.
100%
ordinary
BT Singapore Pte. Ltd.
100%
ordinary
Slovakia
Pribinova 10, 811 09, Bratislava , mestskó èast’ 
Staré Mesto, Slovakia
BT Global Europe B.V., 
o.z.b
100%
–
BT Slovakia s.r.o.
100%
ordinary
Company name
Group 
interest in 
allotted 
capitala
Share 
class
BT Group plc Annual Report 2024
228
Financial statements
Related undertakings continued

Slovenia
Cesta v Mestni Log 1, Ljubljana, 1000, Slovenia
BT GLOBALNE 
STORITVE, 
telekomunikacijske 
storitve, obdelava 
podatkov, podatkovnih 
baz; d.o.o.
100%
ordinary
South Africa
BT Building, Woodmead North Office Park, 54 
Maxwell Drive, Woodmead, Johannesburg, 
2191, South Africa
BT Communications 
Services South Africa 
(Pty) Limited
100%
ordinary
BT Limitedb
100%
–
Spain
C/ María Tubau, 3, 28050 de Madrid, Spain
BT Global ICT Business 
Spain SLU
100%
ordinary
Sri Lanka
Level 03, No 11, Castle Lane, Colombo, 04, Sri 
Lanka
BT Communications 
Lanka (Private) 
Limited
100%
ordinary
Sudan
Alskheikh Mustafa Building, Parlman Street, 
Khartoum, Sudan
Newgate 
Communication 
(Sudan) Co. Ltd
100%
ordinary
Sweden
c/o 7A, Vasagatan 28, 111 20, Stockholm, 
Sweden
BT Nordics Sweden AB
100%
ordinary
Switzerland
Richtistrasse 5, 8304 Wallisellen, Switzerland
BT Switzerland AG
100%
ordinary
Taiwan
11F, No. 1 Songzhi Rd, Xinyi Dist., Taipei City, 
110411, Taiwan (Province of China)
BT Limited Taiwan 
Branchb
100%
–
Tanzania
Region Dar Es Salaam, District Kinondoni, Ward 
Msasani, Street Msasani Peninsula, Road 1 Bains 
Singh Avenue, Plot number 1403/1, Ground Floor, 
14111, United Republic of Tanzania
BT Solutions Limited – 
Tanzania Branchb
100%
–
Thailand
No.63 Athenee Tower, 23rd Floor (CEO Suite, 
Room No.38), Wireless Road, Kwaeng Lumpini, 
Khet Pathumwan, Bangkok, 10330, Thailand
BT Siam 
Communications Co., 
Ltd
49%
class B
BT Siam Limited
69%
ordinary
69%
preference
Trinidad and Tobago
2nd Floor CIC Building, 122-124 Frederick Street, 
Port of Spain, Trinidad and Tobago
BT Solutions Limitedb
100%
–
Company name
Group 
interest in 
allotted 
capitala
Share 
class
Tunisia
Rue de I’, Euro Immeuble Slim, Block A-2nd 
floor-Les berges du Lac, Tunis, 1053, Tunisia
BT Tunisia S.A.R.L
100%
ordinary
Turkey
Acıbadem Mahallesi Çeçen Sk. Akasya A , Kule 
Kent Etabı Apt. No: 25 A/28- , Üsküdar, 
Istanbul, Turkey
BT Bilisim Hizmetleri 
Anonim Şirketi
100%
ordinary
BT Telekom Hizmetleri 
Anonim Şirketi
100%
common
Uganda
Engoru, Mutebi Advocates, Ground Floor, 
Rwenzori House, 1 Lumumba Avenue, Kampala, 
22510, Uganda
BT Solutions Limitedb
100%
–
Ukraine
Office 702, 34 Lesi Ukrainky Boulevard, Kyiv 
01042, Ukraine
BT Ukraine Limited 
Liability Company
100%
stakes
United Arab Emirates
Office No G03, Ground Floor, EIB Building No 
04, Dubai, United Arab Emirates
BT MEA FZ-LLC
100%
ordinary
Office no.206 BLOCK B, Diamond Business 
Center 1, Al Barsha South Third, Dubai, P.O. 
BOX 25205, United Arab Emirates
BT UAE Limited – 
Dubai Branch (1)b
100%
–
BT UAE Limited – 
Dubai Branch (2)b
100%
–
United Kingdom
1 Braham Street, London, E1 8EE, United 
Kingdom
Autumnwindow 
Limited
100%
ordinary
Autumnwindow No.2 
Limited
100%
ordinary
Autumnwindow No.3 
Limited
100%
ordinary
Belmullet (IoM) 
Limitedb
100%
–
BPSLP Limited
100%
ordinary
British 
Telecommunications 
plc
100%
ordinary
Bruning Limited
100%
ordinary
BT (International) 
Holdings Limited
100%
ordinary
BT (RRS LP) Limited
100%
ordinary
BT Communications 
Ireland Group Limited 
– UK Branchb
100%
–
BT Corporate Trustee 
Limited
100%
limited by 
guarantee
BT European 
Investments Limited
100%
ordinary
BT Fifty-One
100%
ordinary
BT Fifty-Three Limited
100%
ordinary
BT Global Security 
Services Limited
100%
ordinary
BT Global Services 
Limited
100%
ordinary
BT Holdings Limited
100%
ordinary
Company name
Group 
interest in 
allotted 
capitala
Share 
class
BT IoT Networks 
Limited
100%
ordinary
BT Limited
100%
ordinary
BT Ninety-Seven 
Limited
100%
ordinary
BT Nominees Limited
100%
ordinary
BT OnePhone Limited
100%
ordinary
BT Property Holdings 
(Aberdeen) Limited
100%
ordinary
BT Property Limited
100%
ordinary
BT Sixty-Four Limited
100%
ordinary
BT SLE Euro Limited
100%
ordinary
BT SLE USD Limited
100%
ordinary
BT Solutions Limited
100%
ordinary
BT UAE Limited
100%
ordinary
Communications 
Global Network 
Services Limited – UK 
Branchb
100%
–
Communications 
Networking Services 
(UK)
100%
ordinary
EE (Group) Limited
100%
ordinary
EE Group Investments 
Limited
100%
ordinary
EE Limited
100%
ordinary
EE Pension Trustee 
Limited
100%
ordinary
ESAT 
Telecommunications 
(UK) Limited
100%
ordinary
Extraclick Limited
100%
ordinary
Global Security Europe 
Limited
100%
ordinary
Mainline 
Communications 
Group Limited
100%
ordinary
Mainline Digital 
Communications 
Limited
100%
ordinary
Newgate Street 
Secretaries Limited
100%
ordinary
Numberrapid Limited
100%
ordinary
Orange Furbs Trustees 
Limited
100%
ordinary
Orange Home UK 
Limited
100%
ordinary
Orange Personal 
Communications 
Services Limited
100%
ordinary
Radianz Limited
100%
ordinary
Redcare Limited
100%
ordinary
Southgate 
Developments Limited
100%
ordinary
Tudor Minstrel
100%
ordinary
Alexander Bain House, 15 York Street, Glasgow, 
Lanarkshire, G2 8LA, Scotland
BT Corporate Limited
99%
ordinary
BT Falcon 1 LP
 51 %
–
Holland House 
(Northern) Limited
100%
ordinary
BDO LLP, 5 Temple Square, Temple Street, 
Liverpool, L2 5RH, United Kingdom
BT Lancashire Services 
Limited
100%
ordinary
Company name
Group 
interest in 
allotted 
capitala
Share 
class
BT Group plc Annual Report 2024
229
Financial statements

Kelvin House, 123 Judd Street, London, WC1H 
9NP, United Kingdom
Openreach Limited
100%
ordinary
Endeavour, Sheffield Digital Campus,1a 
Concourse Way, Sheffield, S1 2BJ, United 
Kingdom
Plusnet plc
100%
ordinary
United States
c/o Corporation Service Company, 251 Little Falls 
Drive, Wilmington DE 19808, United States
BT Americas Holdings 
Inc.
100%
common
BT Americas Inc.
100%
common
BT Communications 
Sales LLC
100%
units
BT Federal Inc.
100%
common
BT Procure L.L.C.
100%
units
BT United States L.L.C.
100%
units
Infonet Services 
Corporation
100%
common
Uruguay
Rincón 487 Piso 11, Montevideo, ZIP CODE 
11.000, Uruguay
BT Solutions Limited 
Sucursal Uruguayb
100%
–
Venezuela
Calle Guaicaipuro, Urbanizacion El Rosal, 
Municipio Chacao, Oficina 11B, Piso 11, Torre 
Forum, Caracas, Venezuela
BT LatAm Venezuela, 
S.A.
100%
ordinary
Vietnam
16th Floor Saigon Tower, 29 Le Duan Road, 
District 1, Ho Chi Minh City, 710000, Socialist 
Republic of Vietnam
BT (Vietnam) Co. Ltd.
100%
ordinary
Zambia
Plot No. 11058, Haile Selassie Avenue, 
Zimbabwe, Lusaka, Lusaka Province, 34972, 
Zambia
BT Solutions Limitedb
100%
–
Zimbabwe
6th Floor, Goldbridge Eastgate, Sam Nujoma 
Street Harare, Post Box 10400, Zimbabwe
Numberrapid Limitedb
100%
–
Company name
Group 
interest in 
allotted 
capitala
Share 
class
Associates (note 24)
Company name
Group 
interest in 
allotted 
capitala
Share
 class
Held via other group companies
Mauritius
IFS Court, Bank Street, TwentyEight 
Cybercity, Ebene, 72201, Mauritius
Mahindra – BT 
Investment 
Company 
(Mauritius) Limited
43%
ordinary
Philippines
32F Philam Life Tower, 8767 Paseo de 
Roxas, Makati City, Philippines
ePLDTSunphilcox 
JV, Inc
20%
ordinary
SunPhilcox JV, Inc
20%
ordinary
United Kingdom
24/25 The Shard, 32 London Bridge Street, 
London, SE1 9SG, United Kingdom
Digital Mobile 
Spectrum Limited
25%
ordinary
10 Stadium Business Court , Millennium Way, 
Pride Park , Derby, DE24 8HP, United 
Kingdom
Midland 
Communications 
Distribution Limited
35%
ordinary
Phoneline (M.C.D) 
Limited
35%
ordinary
2nd Floor, Aldgate Tower, 2 Leman Street, 
London, E1 8FA, United Kingdom
Youview TV Limited
14%
voting
Joint ventures (note 24)
Company name
Group 
interest in 
allotted 
capitala
Share
 class
Held via other group companies
United Kingdom 
Chiswick Park Building 2, 566 Chiswick High 
Road, London, W4 5YB, United Kingdom
TNT Sports 
Broadcasting 
Limitedc
50%
ordinary
6th Floor, One London Wall, London, EC2Y 
5EB, United Kingdom
Internet Matters 
Limited
25%
-
80 Fenchurch Street , London, EC3M 4AE, 
United Kingdom
Rugby Radio 
Station (General 
Partner) Limited
50%
ordinary
Rugby Radio 
Station (Nominee) 
Limited
50%
ordinary
St Helen’s, 1 Undershaft, London, EC3P 3DQ, 
United Kingdom
Rugby Radio 
Station LP
50%
-
All joint ventures are governed by a joint 
venture agreement. 
Joint operations
Company name
Group 
interest in 
allotted 
capitala
Share
 class
Held via other group companies
United Kingdom 
450 Longwater Avenue, Green Park, 
Reading, Berkshire, RG2 6GF, United 
Kingdom
Mobile Broadband 
Network Limited
50%
ordinary
EE Limited and Hutchison 3G UK Limited 
(together ‘the Companies’) each have a 
50% share in the joint operation Mobile 
Broadband Network Limited (‘MBNL’). 
MBNL’s ongoing purpose is the operation 
and maintenance of radio access sites for 
mobile networks through a sharing 
arrangement. This includes: (i) the efficient 
management of shared infrastructure and 
a 3G network on behalf of the Companies, 
(ii) acquiring certain network elements for 
shared use, and (iii) coordinating the 
deployment of new sites, infrastructure 
and networks on either a shared or a 
unilateral basis (unilateral elements being 
network assets or services specific to one 
company only). The group is committed to 
incurring 50% of costs in respect of 
restructuring the shared MBNL network, a 
broadly similar proportion of the operating 
costs (which varies in line with usage), and 
100% of any unilateral elements.
MBNL is accounted for as a joint operation. 
Guarantees for the joint operation are 
given by British Telecommunications plc 
and CK Hutchison Holdings Limited.
The principal place of business of the joint 
operation is in the UK.
a The proportion of voting rights held corresponds to the 
aggregate interest in percentage held by the holding 
company and subsidiaries undertaking.
b No shares issued for a branch.
c BT Ninety-Five Limited name changed to TNT Sports 
Broadcasting Limited. In addition to the 50% ordinary 
A shares we also hold A preference shares and C 
preference shares, see note 24 for more details. 
BT Group plc Annual Report 2024
230
Financial statements
Related undertakings continued

Alternative performance measures
Introduction
We assess the performance of the group using a variety of 
alternative performance measures that are not defined under IFRS 
and are therefore termed non-GAAP measures. The non-GAAP 
measures we use are: adjusted revenue, adjusted operating costs, 
adjusted finance expense, adjusted EBITDA, adjusted operating 
profit, adjusted profit before tax, adjusted earnings per share, 
return on capital employed, normalised free cash flow and net 
debt. We also reference adjusted revenue and adjusted EBITDA on 
a Sports JV pro forma basis. The rationale for using these 
measures, along with a reconciliation from the nearest measures 
prepared in accordance with IFRS, is presented below. 
The alternative performance measures we use may not be directly 
comparable with similarly titled measures used by other 
companies.
Specific items
Our income statement and segmental analysis separately identify 
trading results on an adjusted basis, being before specific items. 
The directors believe that presentation of the group’s results in this 
way is relevant to an understanding of the group’s financial 
performance as specific items are those that in management’s 
judgement need to be disclosed by virtue of their size, nature or 
incidence. 
This presentation is consistent with the way that financial 
performance is measured by management and reported to the 
Board and the Executive Committee and assists in providing an 
additional analysis of our reporting trading results. 
In determining whether an event or transaction is specific, 
management considers quantitative as well as qualitative factors. 
Examples of charges or credits meeting the above definition and 
which have been presented as specific items in the current and/or 
prior years include significant business restructuring programmes 
such as the current group-wide cost transformation and 
modernisation programme, acquisitions and disposals of 
businesses and investments, impairment of goodwill, charges or 
credits relating to retrospective regulatory matters, property 
rationalisation programmes, historical property-related provisions, 
significant out of period contract settlements, net interest on our 
pension obligation, and the impact of remeasuring deferred tax 
balances. In the event that items meet the criteria, which are 
applied consistently from year to year, they are treated as specific 
items. Any releases to provisions originally booked as a specific 
item are also classified as specific. Conversely, when a reversal 
occurs in relation to a prior year item not classified as specific, the 
reversal is not classified as specific in the current year.
Movements relating to the sports joint venture (Sports JV) with 
Warner Bros. Discovery (WBD), such as fair value gains or losses on 
the A and C preference shares or impairment charges on the 
equity-accounted investment as specific. Refer to note 24 for 
further detail.
Details of items meeting the definition of specific items in the 
current and prior year are set out in note 9. 
Reported revenue, reported operating costs, reported operating 
profit, reported net finance expense, reported profit before tax 
and reported earnings per share are the equivalent IFRS measures. 
A reconciliation from these can be seen in the group income 
statement on page 145.
Net debt and net financial debt
Net debt consists of loans and other borrowings, lease liabilities 
(both current and non-current) less current asset investments and 
cash and cash equivalents, including items which have been 
classified as held for sale on the balance sheet.
Amounts due to joint ventures, loans and borrowings recognised in 
relation to monies received from the sale of cash flows of contract 
assets and as prepayment for the forward sale of redundant 
copper are excluded. 
Currency-denominated balances within net debt are translated to 
sterling at swap rates where hedged. Fair value adjustments and 
accrued interest applied to reflect the effective interest method 
are removed. 
Net debt is a measure of the group’s net indebtedness that 
provides an indicator of overall balance sheet strength. It is a key 
indicator used by management to assess both the group’s cash 
position and its indebtedness. The use of the term ‘net debt’ does 
not necessarily mean that the cash included in the net debt 
calculation is available to settle the liabilities included in this 
measure. 
As aligned with our normalised free cash flow metric, from FY24 
onwards we exclude loans and borrowings recognised in relation 
to: 
– Asset monetisation programmes, in which monies received from 
the sale of cash flows of contract assets are recorded as liabilities 
(and the contract asset is not derecognised) until certain 
performance obligations in the contract are fulfilled and the 
right to consideration becomes unconditional. Excluding these 
liabilities is considered to improve the relevance of the net debt 
metric as it is consistent with the treatment of related cash flows 
in normalised free cash flow as noted above; and aligns with the 
underlying rationale and management’s view that substantially 
all the risks and rewards associated with ownership of these 
assets have been transferred to the end buyer. These liabilities 
do not reflect the group’s indebtedness as they will be 
extinguished upon the transfer of ringfenced operational cash 
flows from end customers which management are confident will 
be received.
– Monies received as prepayment for the forward sale of 
redundant copper, which are recognised as liabilities until there 
is physical delivery of the copper (further details in note 26). 
Excluding these liabilities is again considered to improve the 
relevance of the net debt metric by aligning with the treatment 
of related cash flows in normalised free cash flow and the fact 
that balances are not representative of the group’s true 
indebtedness given that they will be settled by the physical 
delivery of copper, rather than cash or any other financial asset.
Net financial debt is net debt excluding lease liabilities. It allows for 
the comparison to net debt measures reported before the 
introduction of IFRS 16 on 1 April 2019, and reflects a view that 
lease liabilities are operational debt in substance, rather than 
financing transactions.
Net debt and net financial debt are considered to be alternative 
performance measures as they are not defined in IFRS. A 
reconciliation from loans and other borrowings, lease liabilities, 
cash and cash equivalents, and current asset investments, the most 
directly comparable IFRS measures to net debt and net financial 
debt, is set out in note 26.
BT Group plc Annual Report 2024
231
Financial statements
Additional information

Return on Capital Employed
We use a return on capital employed (ROCE) measure that serves 
as an indicator of how efficiently we generate returns from the 
capital invested in the business. It is a group KPI that is directly 
relatable to the outcome of investment decisions. 
ROCE represents the group’s returns as percentage of capital 
employed. 
Returns are defined as adjusted earnings before interest and tax. 
We use an adjusted measure (before specific items) for the 
reasons explained in the ‘specific items’ section above. 
Capital employed represents equity, debt and debt-like liabilities. 
We net the derivative financial instruments and cash and cash 
equivalent balances that we use to manage financial risk against 
gross debt, and exclude current and deferred tax balances as the 
measure is determined on a pre-tax basis. 
From FY24 we also exclude amounts due to joint ventures, loans 
and borrowings recognised in relation to monies received from the 
sale of cash flows of contract assets and as prepayment for the 
forward sale of redundant copper. In line with the net debt 
definition on page 231. In the table below we have restated the 
FY23 comparative to align with the updated definition and 
excluded £11m net loans from joint ventures, however it has not 
changed the ROCE metric from the previously reported 8.3%. 
While our long-term capital investment programmes such as our 
full fibre rollout deliver value-creating long-term returns, they 
suppress ROCE in the short- to medium-term. 
The following table sets out the calculation of our ROCE measure. 
In doing so it reconciles returns to operating profit, the most 
directly comparable IFRS measure, and presents the components 
of capital employed.
 
2024
2023
(restated)
Year ended 31 March
£m
£m
Reported operating profit for the 
period
 
2,214 
 
2,619 
Share of post tax profits (losses) of 
associates and joint ventures
 
(21)  
(59) 
Specific items (non-finance and tax)
 
987 
 
556 
Return for the period
 
3,180 
 
3,116 
Equity, debt and debt-like 
liabilities
Loans and other borrowings
 
18,526 
 
18,521 
Lease liabilities
 
4,955 
 
5,359 
Retirement benefit obligations
 
4,882 
 
3,139 
BDUK grant funding deferral
 
228 
 
427 
Total equity
 
12,518 
 
14,514 
Adjust for balances used to 
hedge financial risk
Cash and cash equivalents
 
(414)  
(392) 
Investments
 
(2,395)  
(3,577) 
Net derivative financial instruments
 
(531)  
(1,096) 
Adjust for tax balances
Net deferred tax liabilities
 
485 
 
911 
Net current tax receivable
 
(331)  
(349) 
Adjust in line with net debt 
definition
Net loans with joint ventures
 
(11)  
(11) 
Loans related to sale of contract 
assets
 
(318)  
— 
Loans related to the forward sale of 
redundant copper
 
(106)  
— 
Capital employed
 
37,488 
 
37,446 
Return on capital employed
 8.5 %
 8.3 %
Adjusted EBITDA
In addition to measuring financial performance of the group and 
customer-facing units based on adjusted operating profit, we also 
measure performance based on adjusted EBITDA. Adjusted 
EBITDA is defined as the group profit or loss before specific items, 
net finance expense, taxation, depreciation and amortisation and 
share of post tax profits or losses of associates and joint ventures.
We consider adjusted EBITDA to be a useful measure of our 
operating performance because it approximates the underlying 
operating cash flow by eliminating depreciation and amortisation. 
Adjusted EBITDA is not a direct measure of our liquidity, which is 
shown by our cash flow statement, and needs to be considered in 
the context of our financial commitments.
A reconciliation of reported profit for the period, the most directly 
comparable IFRS measure, to adjusted EBITDA, is set out below.
2024
2023
Year ended 31 March
£m
£m
Reported profit for the period
 
855  
1,905 
Tax
 
331  
(176) 
Reported profit before tax
 
1,186  
1,729 
Net finance expense
 
1,007  
831 
Depreciation and amortisation, 
including impairment charges
 
5,398  
4,818 
Specific revenue
 
38  
(12) 
Specific operating costs before 
depreciation and amortisation
 
450  
503 
Share of post tax losses (profits) of 
associates and joint ventures
 
21  
59 
Adjusted EBITDA
 
8,100  
7,928 
Normalised free cash flow
Normalised free cash flow is one of the group’s key performance 
indicators by which our financial performance is measured. It is 
primarily a liquidity measure. However, we also believe it is an 
important indicator of our overall operational performance as it 
reflects the cash we generate from operations after capital 
expenditure and financing costs, both of which are significant 
ongoing cash outflows associated with investing in our 
infrastructure and financing our operations. 
Normalised free cash flow is defined as free cash flow (net cash 
inflow from operating activities after net capital expenditure) after 
net interest paid, payment of lease liabilities, net cash flows from 
the sale of cash flows related to contract assets, monies received 
as prepayment for the sale of redundant copper, dividends 
received from non-current asset investments, associates and joint 
ventures, and net purchase or disposal of non-current asset 
investments, before pension deficit payments (including their cash 
tax benefit), payments relating to spectrum, and specific items. It 
excludes cash flows that are determined at a corporate level 
independently of ongoing trading operations such as dividends 
paid, share buybacks, acquisitions and disposals, repayment and 
raising of debt, cash flows relating to short-term funding 
arrangements with joint ventures, and cash flows relating to the 
Building Digital UK demand deposit account which have already 
been accounted for within normalised free cash flow. For non-tax 
related items the adjustments are made on a pre-tax basis.
As reflected above and communicated in our FY23 annual report, 
from FY24 we have updated our normalised free cash flow metric 
to reflect the ongoing evolution of the business:
– We include the sale of cash flows of contract assets related to 
mobile handsets where the performance obligations have been 
substantially delivered to the customer. This is a financing cash 
flow in the cash flow statement as certain performance 
obligations in the contract need to be fulfilled before the right to 
consideration is unconditional. The underlying rationale for 
entering into these transactions is however for the purpose of 
working capital management as handset costs are incurred up 
front but recovered throughout the customer contract term. We 
BT Group plc Annual Report 2024
232
Financial statements
Additional information continued

therefore view the related cash flows as equivalent to working 
capital cash flows internally, and consider that they should be 
treated in the same way as operating cash inflows in our external 
normalised free cash flow metric in order to provide the most 
relevant information to the users of the financial statements. The 
corresponding operating cash inflow received from customers is 
excluded from normalised free cash flow if it has previously been 
included at the time of the sale of the contract assets.
– We include monies received as prepayment for the forward sale 
of future redundant copper. In the cash flow statement this will 
be recorded within cash flows from investing activities as a 
separate line item, and will be the only cash flow recognised in 
respect of the transaction. We therefore consider it necessary to 
include the inflow within normalised free cash flow to align with 
the treatment of cash flows from all other purchases and 
disposals of property, plant and equipment.
Normalised free cash flow is not a measure of the funds that are 
available for distribution to shareholders.
A reconciliation from cash inflow from operating activities, the 
most directly comparable IFRS measure, to free cash flow and 
normalised free cash flow, is set out below.
2024
2023
Year ended 31 March
£m
£m
Cash generated from operationsa
 
6,012  
6,588 
Tax paid
 
(59)  
136 
Net cash inflow from operating activities
 
5,953  
6,724 
Net purchase of property, plant and 
equipment and intangible assets
 
(4,967)  
(5,307) 
Free cash flow
 
986  
1,417 
Interest received
 
140  
41 
Interest paid
 
(865)  
(709) 
Payment of lease liabilities
 
(748)  
(727) 
Dividends received from joint ventures, 
associates and investments
 
20  
9 
Net purchase of non-current asset 
investments
 
—  
(5) 
Add back pension deficit payments
 
823  
994 
Add back net cash flow from specific 
items
 
439  
404 
Net cashflows from sale of contract 
assets related to handsets
 
305  
— 
Cash flows relating to the BDUK demand 
deposit account
 
75  
(96) 
Prepayment for forward sale of copper
 
105  
— 
Normalised free cash flow
 
1,280  
1,328 
a Includes £247m outflow (FY23: £259m inflow) related to utilisation of a supply chain 
financing programme; year on year cash outflow of £506m.
Below we reconcile normalised free cash flow by unit: 
2023
2024
(re-presented)a
Year ended 31 March
£m
£m
Consumer
 
1,023  
963 
Business
 
431  
648 
Openreach
 
590  
219 
Other
 
(764)  
(502) 
Normalised free cash flow
 
1,280  
1,328 
a Comparatives for the year ended 31 March 2023 have been re-presented for the 
impact of the creation of our Business customer-facing unit and a change in the 
methodology used to allocate shared central costs. For more information see note 1, 
and for a bridge to prior period published financial information see note 32.
Sports JV pro forma basis
On 3 September 2022 BT Group and Warner Bros. Discovery 
announced completion of their transaction to form a 50:50 sports 
joint venture (Sports JV) combining the assets of BT Sport and 
Eurosport UK. On 18 October 2022 we published unaudited pro 
forma financial information estimating the impact on the group as 
if trading in relation to BT Sport had been equity accounted for in 
previous periods, akin to the Sports JV being in place historically. 
Within this annual report we reference pro forma information 
relating to the prior year ended 31 March 2023. The table below 
provides a bridge between financial information on a reported 
basis and a Sports JV pro forma basis (reported basis re-
presented, see note 32).
Reported 
basis (re-
presented, 
see note 32)
Sports JV pro 
forma 
adjustment
Sports JV pro 
forma basis
2023
2023
2023
Year ended 31 March
£m
£m
£m
Adjusted revenue
Consumer
 
9,737  
(238)  
9,499 
BT Group
 
20,669  
(238)  
20,431 
Adjusted EBITDA
Consumer
 
2,469  
71  
2,540 
BT Group
 
7,928  
71  
7,999 
Normalised free cash flow
Consumer
 
963  
123  
1,086 
BT Group
 
1,328  
—  
1,328 
BT Group plc Annual Report 2024
233
Financial statements

Certain information included in this Annual Report and Accounts 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 Annual Report and Accounts are not guarantees 
of future performance. All forward looking statements in this 
Annual Report and Accounts are based upon information known to 
the Company on the date of this Annual Report and Accounts. 
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 Annual Report and Accounts shall exclude any liability under 
applicable laws that cannot be excluded in accordance with 
such laws. 
BT Group plc Annual Report 2024
234
Financial statements
Cautionary statement regarding forward-looking
statements

BT Group plc Annual Report 2024
235
Financial statements
Notes

BT Group plc Annual Report 2024
236
Financial statements
Notes

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BT Group plc
Registered office: 
1 Braham Street, London E1 8EE
Registered in England and Wales 
No. 4190816
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