BT : Annual Report 2021 - accessible version

We connect for good

BT Group plc

Annual Report 2021

Staying

connected

has never been as important

When people connect, there's no limit to the good they can do. Today, that's truer than ever. The connections we make are helping solve the world's biggest challenges such as the global pandemic, climate change and cyber security. Through the power of technology, we're supporting customers to live, work and play together better. In these extraordinary times we are sharpening our focus and accelerating change.

We connect for good

Good for… our customers

EE tops the table

Delivering the best mobile experience remains our priority. Being recognised as the UK's best network for the fifteenth consecutive time reflects our continued investment in keeping our customers connected to the things that matter to them most.

Giving small businesses a boost

Last summer, we launched a support scheme for small businesses that promises to boost their connectivity, cash flow and confidence.

Unbreakable wi‑fi connection

Innovation is at the heart of what we do. Our new unbreakable internet service brings together the combined power of BT and EE's networks.

the country

Gifting tablets and data to the NHS

Giving unlimited free data to EE customers who work for the NHS and providing tablets to hospital wards so patients could videocall friends and family are just two of the ways we supported the NHS in 2020.

Helped 10 million people in the UK to improve their digital skills

When we launched Skills for Tomorrow, we said we wanted to help 10 million people in the UK learn about tech. We've now achieved this aim, five years earlier than expected.

Beating loneliness with BT+1

In a year that has kept us apart from our loved ones, we started a movement to bring us closer to family and friends.

our colleagues

Better workplace

Our new workplaces are here to shape the direction of our business. A modern company that's better connected to colleagues and customers.

Celebrating the Colleague Board's first birthday

We launched the Colleague Board so we could give everyone here a voice. Through a tough year they've been inspiring change across our business.

tomorrow

Our aim to be

Net Zero heroes

We've been leading on climate action for more than 25 years and we're now targeting net zero for the whole of BT by 2045.

Young scientists make exhibition of themselves

We've been sponsoring what's now the BT Young Scientist & Technology Exhibition for the past 21 years, proud to help cultivate and nurture Ireland's future scientists and engineers.

Taking 5G to school

We're bringing 5G into the heart of the classroom through immersive experiences.

Outer space, under the ocean or on top of Mount Everest, students can feel like they're right there with this new way of learning

- the first of its kind in the UK.

There never has been a more crucial time to play such an important role in the lives of our customers. We have sharpened our focus, accelerated our digital drive and supported the nation in adapting to the new normal.

For more information read our Digital Impact and Sustainability Report at

bt.com/sustainabilityreport

To read these stories and more - visit our online annual review and see how we're connecting for good.

bt.com/annualreview

Strategic report	1

Contents

Strategic report
A message from our Chairman	2
A message from our Chief Executive	5
Executive Committee	8
About BT and our purpose	10
Our business model	12
Key trends influencing BT	14
Regulatory update	16
Our ambition and strategy	18
Strategic progress	20
Our stakeholders	34
Section 172 statement	42
Non-financial information	44
Our key performance indicators (KPIs)	46
Group performance	48
A letter from the Chair of Openreach	56
How we manage risk	57
Our principal risks and uncertainties	59
Task Force on Climate-related Financial Disclosures 67
Viability statement	68
Corporate governance report	69
Financial statements	111
Additional information	197

Look out for these throughout the report:

Reference to another page in the report

Reference to further reading online

This Strategic report was approved by the Board on 12 May 2021.

By order of the Board.

Jan du Plessis

Chairman

12 May 2021

Please see the cautionary statement regarding forward- looking statements on page 200.

Pages 1 to 68 form the Strategic report. It includes our business model, strategic progress, our key performance indicators, group performance and our principal risks and uncertainties.

The Corporate governance report on pages 69 to 110 forms the Report of the Directors and includes the Report on directors' remuneration.

BT Group plc Annual Report 2021