1. © British Telecommunications plc 1 Accountability OEB Top Level Flash Results January 2011

2. © British Telecommunications plc 2 Response rates pan BT Survey Open:. 19 Jan- 3 Feb BT responses: 28,605 (59%) BT Operate : 5605 (69%)

3. © British Telecommunications plc 3 EEI has slightly increased to 3.55 (3.54 Q3) 5 Business Units see a positive shift PCI has stayed the same at 3.76 (3.76 Q3) 6 Business Units see a positive shift There was a statistically significant improvement in the following items: Senior leaders (all items) I have a good work life balance People are treated with dignity and respect (which is usually a good indicator for B&H) I think my performance on the job is evaluated fairly There was a statistically significant decrease in the following items: My manager helps me give my best performance Since I was last surveyed I’ve received praise or recognition for doing good work Helpful – we go out of our way to make a difference Items that have improved this Quarter How often do you have 121’s with your manager? I think my performance on the job is evaluated fairly Communicate openly about our progress Headlines Finance has also seen the greatest shift in PCI 3.95 (3.78 Q3) Finance has seen the greatest shift in EEI 3.69 (3.57 Q3)

4. © British Telecommunications plc 4 Highs, lows and movements Highest scoring questions: I believe our Super-fast broadband offering is essential for the future Helpful - We go out of our way to make a difference BT is where I would like to continue working, for at least the next 12 months *Lowest scoring questions: Things are changing for the better in my business unit Inspire me about the future of the company Our senior leaders are making the right decisions to make BT a better business. * Same as last Quarter Most significant increases How often do you have 121’s with your manager (+0.54) Most significant declines Since I was last surveyed i’ve had praise or recognition for doing good work (-0.08)

5. © British Telecommunications plc 5 Detailed summary 1.EEI & PCI breakdown by business unit 2.Top level section results 3.Bullying & Harassment 4.Next steps

6. © British Telecommunications plc 6 EEI has seen a slight increase with PCI remaining the same as last quarter Overall as engagement has improved for most LoB’s. *BT EEI = 3.61 (3.59) *BT PCI = 3.77 (3.75) EEI & PCI summary January 2011

7. © British Telecommunications plc 7 EEI & PCI summary January 2011

8. © British Telecommunications plc 8 My Job - 3.61 (+0.01) Highest: I know what is expected of me to help BT to be number one for customer service 3.94 (+0.02) Lowest: I have a good work-life balance 3. 21 (+0.06) Most significant change I have a good work-life balance 3.21 (+0.06) My Team - 3.63 Highest: *People are committed to doing quality work 4.07 (+0.00) Lowest: *We are speeding up and simplifying the way we work 3.06 (+ 0.03) Most significant change: People are treated with dignity and respect 3.46 (+0.05) Our Values - 3.89 (-0.02) Highest: *Helpful - We go out of our way to make a difference 4.15 (-0.04) Lowest: Inspiring – we do things that excite and amaze 3.58 (-0.03) Most significant change: Helpful - We go out of our way to make a difference 4.15 (-0.04) My Manager - 3.70 Highest: *My manager works with other managers across the business 4.04 (-0.01) Lowest : *I believe that when change happens it happens for the right business reasons 3.01 (-0.00) Most significant change: I think my performance on the job is evaluated fairly 3.33 (+0.17) Top Level Section Results * Same as last Q

9. © British Telecommunications plc 9 Senior Leaders - 3.20 (+0.14) Highest: *Communicate openly about our progress 3.42 (+0.16) Lowest: *Inspire me about the future of the company 2.96 (+0.13) Most significant change: Communicate openly about our progress 3.43 (+0.16) BT - 3.68 (+ 0.02) Highest: *BT is where I would like to continue working, for at least the next 12 months 4.12 (+0.01) Lowest: *I am extremely satisfied with BT as a place to work 3.32 (+0.03) Most significant change: At BT we conduct our business in line with our code of ethics 3.88 (+0.05) Hot Topics - 3.52 Highest: I believe our super-fast broadband offering is essential for the future growth of the co 4.29 Lowest: *Things are changing for the better in my business unit 2.88 (+0.08) Most significant change: Things are changing for the better in my business unit 2.88 (+0.08) Local Questions - 3.50 Highest: *I understand what is expected of me to be successful in my job 3.91 (+0.01) Lowest: *I feel comfortable approaching senior leaders in BT Operate with feedback either directly or through the channels that exist 3.18 (+0.02) Top Level Section Results * Same as last Quarter

10. © British Telecommunications plc 10 Bullying & Harassment

11. © British Telecommunications plc 11

12. © British Telecommunications plc 12 Cascade process and Line Manager activities Reports distributed: OEB Reports will be sent direct to Board Member 9/10 February Reports available to CARE/HR Leads @ 11 February All Manager - @ 15 February Expectations of managers: Read report promptly Share report with team Have a conversation with their team about it! Support provided: Guide to CAREagile & engagement Guide for discussion with team Education calls –Help sampled managers understand their data & engage in discussion with their people –Useful links on all CAREagile Reports –Podcasts OEB conversation: We have a 30 /45mins conversation planned for the 17 th Feb Next steps

13. © British Telecommunications plc 13 Accountability OEB CARE Agile Qualitative discussion Chris Jullings / Yasmin Chiu November 2010 13 Appendix A