1

GIS webcast

3 December 2013

What we’re talking about today

• We’ve got a lot to be proud of• Exchange engineering services• Staying service-obsessed• Restructuring GIS• Q&A

2

We’ve got a lot to be proud of

3

Delivering the Next Generation WDMPeter McScorely

BT Sport launch was a fantastic success.

Steven DawDelivering switch site capacity for O2 at 12 major customer switching centres

Guy Voice

IXD..... we deliver care, customer, people

Donald Stubbs

£100M annualised savings delivered in energy and 77% group engagement in energy

Jennifer Dove

We’ve got a lot to be proud of

4

Starting my apprenticeship based in Cambridge. I've been given great hands on training.

Nathan Meek

The introduction of the Modular Infrastructure computing platform and the delivery to date of 600 customer virtual machines

Shaun Parker

PDH platform compaction, now stands at 27.54% since project start.

Jacqui Adam

Got to be part of one of the TSO teams at the Challenge Cup semi-finals.

Arun Krishnamoorthy

Project Flawless.Cliff Adjodha

System X site visit

5

Exchange engineering services

IxD deployment next Steps: engineers owning exchanges

Wave 1

Embed, Sustain POCCreate EnablersDeploy 2nd patch

Wave 2(Deploy North)

Wave 3(Deploy South)

•Wave 2 (April 14 – May 14)•Deploy IxD in North

•Wave 3 (May 14 – June 14)•Deploy IxD in South

• We have agreed approach to IxD deployment using CI methodology•Wave 1 (Dec 13 – Feb 14)

•Embed learning, “Sustain POC”•Build critical enablers for national rollout•Create 2nd patch in South

How are we gong to do this? with you – not to you.

•Wave 1 (Dec. 13 – Mar. 14)

•Sustain and grow

IxD will enable EES to deliver seamless service by:• Bundling work at exchanges and enabling better use of skills, • Increasing exchange ownership, • Using improved performance measures- business and personal• Consolidating and simplifying controls & systems and planning more flexible

work.

In short putting our engineers in control of their exchanges

GIS Ambition KPIs – How are we doing?Deliverable Current Outlook Comments

CAT1 Server Provision time (Avg) Started Q1 at 14 days. On target to meet our Q4 target of 2 days but need to clear a backlog of tricky cases.

Power MSOs 50% Reduction Incidents: Trending in the right direction. MSO's causing a much smaller customer impact than in previous years.

Service Reliability 139 YTD (Q3 target of 161) improving performance in GIS generated issues.

Trading Reliability Trading Reliability @ 99.996% against a target of 99.991%

Deliver RFT Performance (Field) Currently 88.5% against a Q3 target of 91.7%

Deliver Group RFT Performance Group RFT is running at 0.7% improvement YTD against a Q3 target of 4.5%

GIS Total - GMC (Cumulative) Plans in place to come back to budget on GMC. Need to keep focus through to end of year.

GIS Total - TLR Plans on track, but we need to stay focussed.

Total Energy Savings £9.1M saved YTD against a Q3 target of £10.9M.

PDH Compaction (De Powers) % Coverage PDH compaction programme depowered 27.53% of the PDH network.

Server Decommissioning 3332 servers decomissioned YTD. Continuing to drive to gain further power savings.

DSLAM Depowers 791 DSLAMs depowered against a Q3 target of 802.

Application Decommissioning Currently achieved 182 Applications against a Q3 target of 172

Insource Roles 93 FTE YTD. Further 70+ opportunities in the pipeline.

Engaging our people - EEI Q3 results show a flat EEI trend of 3.68 (3.69 in Q2).

Staying service-obsessed

You’re listening to a video of our people talking about how they’ve been service-obsessed

9

What do we need to do?

•Deliver a reliable and easy to manage power estate.

•Provide robust and service focussed Datacentre services .

•Maintain and improve the 20C transmission estate and availability

•Deliver and maintain all exchange based services with customers at the centre of our services.

Fail fast and support learning

Reward the saves

Intolerant of backlogs

Knowledge transfer

Innovation in smart thinking

Talking service-obsessed in your teams

Restructuring GIS

• Howard Watson, MD architecture & global IT platforms (AGIP)– Paul Conlon, director, datacentres

• Clare Sadlier, CFO– Richard Tarboton, director, energy & environment unit

12

We’ve decided where teams should go based on the key principles upon which BT TSO was built. For example, making it easy for our customers to do business with BT and simplifying our business to help us to work more effectively end-to-end.

Restructuring GIS

• Richard Holroyd, MD strategy, service & operations (SSO)– Mark Williamson, director, exchange engineering services

– Paul Holl, director, engineering demand

– Mike Dorgan-Davey will be moving to exchange engineering services to work on the IxD programme. The rest of Mike’s business operations team will also move into SSO.

• Karl Penaluna, MD global network services (GNS)– Tom Wyman, director, power and cooling

– Paul Weir, director, transmission

13

Enjoy the festive season!

• Does anything you’ve heard today surprise you?

• Does anything worry you?

• What can you do to help BT succeed?

• What would you like to hear more about?

Questions?

Ideas?

Concerns?

Let’s hear your views and thoughts