BT Global Services

BT Global Services Announcing a new investment in Latin America

October 2011

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BT … a global leader in networked IT services

Introduction

Jeff Kelly

CEO

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• Providing high quality telecommunications

services since 1846

• Revenues of more than £20 billion in 2010

• 93,000 employees globally

• £1 billion in R&D spend on innovation

• Relationships with 25 universities globally,

including Cambridge, MIT and Tshihhua

• The Official Communications

Service Provider for the London

2012 Olympic and Paralympic

Games, We will be carrying every

call, piece of data, image and sports

report for the games.

• A long track record of acting

responsibly and supporting the

communities to whom we deliver

services. In 2011 we maintained

gold sector status in the Dow Jones

Sustainability Index and „Platinum

Plus‟ level in the Business in the

Community Corporate Responsibility

Index.

Introduction

BT, an introduction

BT is one of the world‟s leading communications services companies, serving the needs of

customers in the UK and in more than 170 countries worldwide

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What is our vision for BT Global Services?

What makes us different?

• 22,000 people globally supporting enterprise

customers, with one of the largest

professional services capabilities in our

industry

• Bringing together a broad portfolio of

services

• With a track record of delivering for

customers globally in more than 170

countries

• Underpinned with a unique breadth of

scope, reach and capability

• And recognised as market leading for

customer service and innovation

The global leader in networked IT services

BT Global Services is a global leader in managed networked IT services, operating globally and

delivering locally to help our customers thrive in a changing world

Our vision

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Our customers

Who are our customers?

A global leader in managed networked IT

services

• Multinational corporations

• Financial institutions

• Public sector organisations

• Major companies in key markets globally

Experience, and a track record

• Around 7000 corporate and public sector

customers across more than 170 countries

• Widely recognised as market leader by industry

watchers

BT Global Services is a leader in

IDC’s Marketscape for Asia Pacific

Next-Generation Telecom Services 2010

Experience and track record of delivery with a wide range of customers globally

BTGS customers by sector 2010/11

Our customers

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Our customers Our customers

Some examples of customers currently working with BT

Who are our customers?

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Local & devolved

government

Central Government

Defence

Health

Food

Beverages

Personal care

Home care

Tobacco

Manufacturing

Logistics

Pharmaceutical

Retail banks

Global banks

Financial markets

Insurance

Global Banking and Financial Markets

Government and Health

Consumer Packaged Goods

Global Commerce

Our customers Our customers

Who are our customers?

Building our business around industry challenges, with industry-specific solutions

Innovation and new solutions ...

based on strength in the UK

Industry experience

and solutions

Professional Services people and capability

Global assets;

people and

technology

Customers want to work with a global managed networked IT services leader,

operating globally and delivering locally to help them thrive in a changing world

What makes us different?

Only two or three companies in the world can do what BT does today for customers, and

we‟re continuing to improve ...

Our solutions

We‟re investing globally to make improvements in the areas

our customers tell us are important to them ... Today‟s

announcement is a key part of that

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BT‟s new investment in Latin America An overview

Luis Alvarez

President

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Economic overview

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-4.0%

-3.0%

-2.0%

-1.0%

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

2007 2008 2009 2010 2011 2012 2013 2014

Latin America

World

Latin America has rapidly recovered from recession and offers exciting opportunities for growth

• Per capita GDP to grow

3.6% in 2011

• Foreign Direct Investment up

40% in 2010

• Exports to grow 27%

in 2011

• Latin American countries will

invest $450 billion in

infrastructure development in

2011-2015

Source: IMF World Economic Outlook Database, April 2011

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-4.0%

-2.0%

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

16.0%

2007 2008 2009 2010 2011 2012 2013 2014

ICT Spending Outlook Latin America

World

Source: IDC Worldwide Black Book

Query Tool, Version 4, 2010

Market overview

Companies and organisations across the region understand ICT, and are investing faster than the rest of the world

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Market overview

CEOs are focused on realising the benefits of ICT investments, but planning now for a future of innovation and global growth

Opportunities:

• Global and regional expansion

• Football World Cup 2014 and

Olympic Games 2016 in Brazil

• Better penetration in their

existing markets in LatAm

• Expansion to other countries in

the region often through

strategic alliances or joint

ventures

Long term investment priorities (3 years)

Medium term priorities (1 year)

Source: PwC, 7th South American edition of the 13th Annual Global CEO Survey – 2010

N=194 Latin American CEO‟s interviews

Initiatives to realize cost efficiencies Leadership and talent development Organic growth programs Strategic technology infrastructure or applications R&D and new product innovation Advertising and brand- building Capital investments

84%

71%

68%

69%

65%

51%

45%

Implement a cost- reduction initiative Outsource a business processor function Enter into a new strategic alliance or joint venture “Insource” a previously outsourced business process or function Divest or spun-off majority interest in a business or exit a significant market Complete a cross-border merger or acquisition End an existing strategic alliance or joint venture None of the above Don‟t know/ refused

64%

38%

50%

21%

13%

26%

23%

4%

8%

0% 0%

13 Source: Market Sizing team providing Data from IDC.

Portfolio categories based BT GS inputs

We see a 14 billion euro opportunity for the solutions we provide for our customers, growing at 7.4% a year

Latin America market, 2010/11 € billion

Total:

3yr CAGR

7.4%

2010/11

€14bm

2014/15

€18bm

3,9% Network Managed Services (Integration , Consulting, Outsourcing...)

5%

IT ( Cloud PS & DC) 7,2% 42%

Voice/UCC 7% 5%

CRM 7,9% 9%

Converged Services (IPT,LAN,WAN)

8,7% 21%

Mobility 3% 11,9%

Networking 4% 4,3%

Security 8,6% 4%

Market overview

CIO priorities:

• Cloud computing and virtualization

• Professional Services – BT‟s

networked based consulting

• Convergence and unified

communications

• Contact centre and CRM solutions

Current Analysis

“BT is among the stronger competitors in Latin America, and thanks to its past acquisitions, the company already has the regional resources in place to increase its profile and win clients.”

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“With BT we have the advantage of a

global solution from a single supplier,

which avoids the complexity and costs

of dealing with multiple service

providers.”

Gilberto Ceresa

CIO, FIAT Group

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Delivering locally

BT has substantial operations across the region...

Key facts:

• Operating since 2002.

• World Economic Forum strategic

partner in Cancun (2008), Rio (2009),

Cartagena (2010) and Rio (2011)

• Headquartered in San Paulo, Brazil

• More than 1,000 employees

supporting customers in the region

• Commercial and operational

capabilities

across 22 Latin American markets

• Offering a wide range of networked IT

services including IP infrastructure,

application services, outsourcing

solutions and business transformation

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Delivering locally Delivering locally

...with a history of successful investment in Latin America...

Operating globally and delivering locally:

• 180 Points of Presence

• +37,000 customer connections

• 7 network operations centres providing monitoring and

proactive diagnosis 24x7

• 3 data centres in Brazil, Argentina and Colombia

• Security operations center in Sao Paulo

Current Analysis

“BT's ambitions in professional

services are backstopped by

several large data centers in

the region that can provide

outsourced/hosted services

and applications for clients.”

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Delivering locally

• One of the largest broadband satellite coverage

in Latin America

• BT‟s satellite services combined with other

BT network capabilities provide:

• Network services in remote areas

• Integrated Service Support – SLA Management

• High Reliability / Backup Service

• Fast Response Times

• Cost efficiencies

...including one of the largest satellite footprints in the regions

Current Analysis

“BT’s acquisitions give

the company a substantial

network presence

throughout Latin America.”

For Compartel, BT proposed satellite delivery for the bulk of internet

connectivity. "As well as putting in place the infrastructure and

training to help the Colombian people cross the digital divide, BT

provided relevant suggestions to help us develop the evaluation

parameters we use in our SLAs.”

Guillermo Alberto Cruz

Head of the Compartel Programme,

Colombian Ministry of Communications

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Working with the worlds leading companies:

• Global multinationals working with BT globally and with presence in

Latin America

• “Multilatinas” working with BT within the region and internationally

• Domestic companies with global ambitions

• Prestigious government institutions contracting locally

Delivering locally

BT works with global and „multilatinas‟ customers, as well as the many fast-growing local companies with international ambitions

“Our most complex project was

implemented in record time, with the entire

installation taking less than one year. And

within six months of implementing the new

system CIAXA was making savings of

around 15% of lottery operating expenses.

We were also providing better service”

Antonio Carlo Barasuol

CAIXA Lotteries

“BT is the leading

provider in terms

of the Total

Contract Value of

Managed Network

Services contracts

awarded in Latin

America since the

beginning of 2010”

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Media comments

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Customers are telling BT they need three things

from their global networked IT partner in Latin America…

1. To provide consistent technology and services globally

2. To reduce complexity through local knowledge and expertise

3. To enable business growth and transformation

Business needs

“Despite the extremely tight deadlines, the

new offices opened with the entire linking

network configured and the new IP

telephony system up and running with 100

per cent user satisfaction. It simply could

not have been better.”

Alfred Gunter

Infrastructure Manager

Unilever Brazil

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• Enhancing BT MPLS infrastructure

and New Global MPLS POPs

• Enhanced Data Centre capabilities

• Additional infrastructure to support

key products and services

• Satellite Communications

(Rio de Janeiro)

• Data centres & Security (Bogota)

• IP Telephony & Contact Centre

(Mexico)

Project focus

Deliv

ery

Port

folio

In response, BT‟s customer-led investment programme is focused in three key areas

1. Infrastructure - Expanded and Strengthened

“BT’s MPLS points of presence will

increase by 20% in the next three years

Luis Alvarez

President

BT Global Services

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2. Portfolio - Enhanced and Coordinated

Project focus

In response, BT‟s customer-led investment programme is focused in three key areas

BT Assure

Security that matters

BT Connect

Networks that think

BT One

Communications that unify

BT Contact

Relationships that grow

BT Compute

Services that adapt

“BT will launch over 30 new

products and services in the

region in the next three years”

Neil Sutton

Vice President, Portfolio

BT Global Services

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2. Portfolio - Enhanced and Coordinated

Project focus

In response, BT‟s customer-led investment programme is focused in three key areas

• BT Ethernet Connect expanded to 21 cities

• New BT IP Connect nodes in Brazil and Mexico

• Upgraded Connect Backbone

• New BT IP Connect access in Brazil, Colombia and

Mexico

BT Connect

Networks that think

BT One

Communications that

unify

• BT One Managed Microsoft Lync

• BT One Voice in Colombia

• BT One Video new bridge in Brazil and Colombia

• BT One Cloud Upgraded Connect Backbone

BT Contact

Relationships that grow • BT Cloud Contact and new BT Inbound Contact nodes to

reach consumers across Latam

BT Compute

Services that adapt

• BT On Demand Compute in Brazil, Colombia & Mexico

• BT Data Centre Services

BT Assure

Security that matters • BT Assure Portfolio launch across the region

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3. People - Ready and Able

• 250 new professionals across Latin America providing

technical and sales support and extending capabilities in

Professional Services

• Centres of excellence in satellite technologies, security,

data centres services, IP telephony and contact centres

• Industry specific expertise in financial services,

consumer packaged goods and global commerce

(manufacturing, logistics and pharmaceuticals)

Project focus

In response, BT‟s customer-led investment programme is focused in three key areas

“BT has been a true business partner in the

Compartel project. It has not only the technical

capacity to meet our stringent connectivity SLAs but

also the flexibility to project manage a wide range of

additional initiatives, from training to technical

support.”

Guillermo Alberto Cruz

Head of the Compartel Programme

Colombian Ministry of Communications

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BT is proud of our history in Latin America, and confident that our investment will result in great success for us, and for our customers

• This is a customer led investment plan - driven

by solutions our customers have told us they need to grow

their business successfully in Latin America.

• BT‟s people and professional services combined with an

enhanced portfolio and improved infrastructures, delivers a

market leading strong and consistent offer for our

customers

• By operating globally and delivering locally – we enable our customers to seize opportunities as they

expand their operations in Latin America and across the

world

BT Global Services

A global leader in

networked IT services

Global Leader

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Thank you!