© British Telecommunications plc BT’s CR story BT has a long-standing commitment to responsible and sustainable business practices. Our commitment to help create a better, more sustainable world is as strong as ever. Sir Michael Rake, Chairman, BT “ ” Allan Scott, Head of Marketing, March 2011

© British Telecommunications plc Delivering the public spending cuts facing the new Government will not be easy. But those who argue it will be impossible without slashing services should take a look at BT. David Wighton Business and City Editor The Times “ “

© British Telecommunications plc We met our cost challenge head-on It is not enough any more just to ‘squeeze the sponge’ – you have to do things differently We have been through it  Cut operating expenditure by £1.8 billion  Reduced capital expenditure by £800 million  Improved our bottom line by £250 million  Increased our cash flow by £1.2 billion  All while facing an economic recession, and without compromising customer service In the last 18 months,we have: Delivering the public spending cuts facing the new Government will not be easy. But those who argue it will be impossible without slashing services should take a look at BT. David Wighton Business and City Editor The Times Delivering the public spending cuts facing the new Government will not be easy. But those who argue it will be impossible without slashing services should take a look at BT. David Wighton Business and City Editor The Times “ “

© British Telecommunications plc BT cut costs while improving services 5. Industrialise processes Automate processes as far as possible, including across organisational boundaries. Enable customer self-service, and minimise the manual handling of information 1. Impose discipline Constrain travel and discretionary spend. Halt purchasing, centralise decision making, introduce new business rules and freeze recruitment 2. Rationalise supply chain Consolidate with fewer suppliers and renegotiate contracts. Centralise vendor management and require the use of preferred suppliers. Stop and review all CAPEX plans 3. Drive tactical efficiency and engage everyone Use local headcount reduction targets to drive local prioritisation and efficiency. Demonstrate leadership through ‘town hall’ meetings. Speak regularly to all staff and involve them. Use technology for mobile & flexible working & rationalise property portfolio 4. Redesign the operating model Wipe the slate clean. Rethink how the organisation needs to work. Simplify processes, create shared service factories and focus on getting services right first time. Design the organisation structure last

© British Telecommunications plc Mobilising Business Processes Operational improvement through mobilising processes, applications, service & supply chains and assets Mobile Services Mobile voice, data & services: GSM, GPRS & 3G services, Public Wi-Fi & Wireless LAN Work Anywhere – The BT Approach to Enterprise Mobility Flexible Working Empowering people to work flexibly, securely and efficiently wherever they are

© British Telecommunications plc BT Mobility - 6 Business Drivers for Flexible Working Increasing productivity of employees, systems and resources enabling project-based working practices reducing non-productive time and absenteeism Delivering more effectively creating a more engaged, motivated & customer-focussed workforce moving to objective based management and focus Ensuring business continuity & CSR reducing the dependence on employees working from office locations meeting sustainability objectives, reducing carbon impact Reducing operational costs space reduction and property rationalisation reducing property management costs Retaining and attracting talent supporting work-life balance keeping the right people & meeting legal requirements

© British Telecommunications plc BT Mobility - 7 What is Total Collaboration from BT? BT Total Collaboration brings together a variety of communications channels such as web, instant messaging, audio, video and conferencing into one integrated unified communications toolbox. One size does not fit all! These can be tailored to meet your organisation needs. This could be voice, video, IM, workspaces, web conferencing, audio conferencing, etc. The following slides guide you to chose which technologies will help you to collaborate.

© British Telecommunications plc BT Mobility - 8 The dynamics of collaboration Face-to-face Telepresence Video Web Audio IM Social interaction to build relationships Present and edit documents See reaction and body language Simple clarification Discuss issues and actions Meeting duration (hrs) Meeting needs P

© British Telecommunications plc BT Mobility - 9 The dynamics of collaboration Face-to-face Telepresence Video Web Audio IM Social interaction to build relationships Present and edit documents See reaction and body language Simple clarification Discuss issues and actions Meeting duration (hrs) Meeting needs IM IM/ Presence / Chat MS OCS, BPOS, and Cisco UPS Web 2.0/ Social Networking iClick, Synapse

© British Telecommunications plc BT Mobility - 10 The dynamics of collaboration Face-to-face Telepresence Video Web Audio Social interaction to build relationships Present and edit documents See reaction and body language Simple clarification Discuss issues and actions Meeting duration (hrs) Meeting needs Audio Telephone calls (TDM, IP, Mobile) Audio conferencing Voic Contact management

© British Telecommunications plc BT Mobility - 11 The dynamics of collaboration Face-to-face Telepresence Video Web Social interaction to build relationships Present and edit documents See reaction and body language Simple clarification Discuss issues and actions Meeting duration (hrs) Meeting needs Web Web conferencing Cisco WebEx and MS LiveMeeting MS Exchange, BPOS Document sharing / White boarding MS SharePoint, LiveMeeting, BPOS

© British Telecommunications plc BT Mobility - 12 The dynamics of collaboration Face-to-face Telepresence Video Social interaction to build relationships Present and edit documents See reaction and body language Simple clarification Discuss issues and actions Meeting duration (hrs) Meeting needs Video Video to the desktop/ streaming

© British Telecommunications plc BT Mobility - 13 The dynamics of collaboration Face-to-face Telepresence Social interaction to build relationships Present and edit documents See reaction and body language Simple clarification Discuss issues and actions Meeting duration (hrs) Meeting needs TelePresence/ Immersive Video UC Video Cisco, Polycom, Tandberg

© British Telecommunications plc BT Mobility - 14 The dynamics of collaboration Face-to-face Social interaction to build relationships Present and edit documents See reaction and body language Simple clarification Discuss issues and actions Meeting duration (hrs) Meeting needs

© British Telecommunications plc BT Mobility - 15 The benefits of Total Collaboration Total Collaboration will help you: Improve productivity Reduce costs Work globally Be greener

© British Telecommunications plc BT Mobility - 16 Improve productivity Reach the right person, first time, every time, and access colleagues, information and messages from wherever you are. Increase time to market Presence technologies save each user, on average, 32 minutes a day (Research by Sage) The BT experience: BT Homeworkers are 31% more efficient Absenteeism down 63% 97% of women return to BT after maternity leave (UK average is 40%).

© British Telecommunications plc BT Mobility - 17 Reduce costs Total Collaboration can deliver savings in labour, inventory, distribution and customer service Cut mobile phone bills by 30%, traffic by 40% and voic by 15% with Instant Messaging (IM) The BT experience: 60,000 of our 100,000 global employees are UCC enabled remote workers A further 11,500 are home based, providing BT with property savings of £500 million per year. Our Carbon Impact Assessment has saved BT £363 million over 5 years

© British Telecommunications plc BT Mobility - 18 Be greener Total Collaboration technologies reduce travel, remove cost, lower carbon emissions and increase productivity. Presence enables application sharing and instant messaging while Telepresence enables global collaboration with real-life teleconferencing. The BT experience: BT saved annual travel & subsistence costs of €111m Conferencing has eliminated more than 700k face-to- face meetings a year at BT BT has achieved a 45% reduction in emissions frpm air travel over the past 2 years BT was the first organisation to meet WWF’s One in Five challenge July 2010

© British Telecommunications plc BT Mobility - 19