BT : Annual Financial Report

24 May 2018

BT Group plc

Annual Financial Report

Annual Report & Form 20-F 2018

Notice of meeting 2018

Following release on 10 May 2018 of its final results for the fourth quarter and year to 31 March 2018 (the Results Announcement), BT announces that the above documents have been published today and are available on its website atbt.com/annualreport

Copies of these documents, together with the proxy form for the
BT Annual General Meeting, have been submitted to the National Storage Mechanism and will shortly be available for inspection athttp://www.morningstar.co.uk/uk/NSM

For the purposes of complying with the FCA's Disclosure Guidance and Transparency Rules, additional information including certain information in the BT Annual Report & Form 20-F 2018 (the Annual Report) is set out below.

Additional Information required by Disclosure Guidance and Transparency Rule (DTR) 6.3.5

The following information, which is extracted from the Annual Report should be read in conjunction with the Results Announcement which includes a condensed set of consolidated financial statements, an indication of the important events that have occurred in the reporting period, and a description of BT's principal risks and uncertainties. Together these constitute the material required by DTR 6.3.5 to be communicated to the media in unedited full text through a Regulatory Information Service.

This material is not a substitute for reading the Annual Report in full and page and note numbers and cross-references in the extracted information below refer to page and note numbers and cross-references in the Annual Report. Defined terms used refer to terms as defined in the Annual Report.

'29. 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 5.

5. Operating costs

Compensation of key management personnel

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:

More detailed information concerning directors' remuneration, shareholdings, pension entitlements, share options and other long-term incentive plans is shown in the audited part of the Report on Directors' Remuneration(see page 156), which forms part of these consolidated financial statements.

Amounts paid to the group's retirement benefit plans are set out in note 20.'

'Statement of Directors' responsibilities

Each of the directors, whose names and functions are listed on pages 134 to 135 confirms that, to the best of their knowledge:

· the group financial statements, which have been prepared in accordance with IFRSs as adopted by the European Union- Dual IFRS (European Union and IASB) - give a true and fair view of the assets, liabilities, financial position and profit of the group; and

· the StrategicReporton pages 1 to 130 includes a fair review of the development and performance of the business and the position of the group and company, together with a description of the principal risks and uncertainties that it faces.'

ENDS