Directors Report 1

Directors' report
The directors present their annual report on the affairs of BT Sle Euro Limited (the "Company"), together with the financial statements and independent auditors' report, for the year ended 31 March 2018. The registered number of the Company is 7573610.
The directors' report has been prepared in accordance with the special provisions relating to small companies. within Part 15 of the Companies Act 2006.
Principal activities and future developments
The Company's principal activity is to act as an investment holding company within the British Telecommunications plc group of companies. The directors do not anticipate any change in the foreseeable future.

Principal risks and uncertainties
The principal risks to which BT Group plc (the ultimate controlling entity of the Company) is exposed are also the principal matters which would create risk and uncertainty for the Company. These are managed by the directors of BT Group plc at the group level rather than at an individual business unit level. They are discussed on pages 56-70 of the group's 2018 financial statements which does not form part of this report.
Financial risk management Credit risk Credit risk arises from cash and cash equivalents, and deposits with banks and financial institutions, as well as credit exposures to wholesale and retail customers, including outstanding receivables and committed transactions. For banks and financial institutions, only independently rated parties with a minimum rating of 'A' are accepted. If wholesale customers are independently rated, these ratings are used. If there is no independent rating, risk control assesses the credit quality of the customer, taking into account its financial position, past experience and other factors. Individual risk limits are set based on internal or external ratings in accordance with limits set by the board..The utilisation of credit limits is regularly monitored. The amount of exposure to any individual counterparty is subject to a limit, which is reassessed annually by the board.
Liquidity risk The company actively maintains a mixture of long-term and short-term debt finance that is designed to ensure the company has sufficient available funds for operations and planned expansions.

1.0
BT Sle Euro Limited
Directors' report (continued)
Interest rate cash flow risk
The company has both interest-bearing assets and interest-bearing liabilities. Interest-bearing assets include only government securities and cash balances, all of which earn interest at fixed rate. The company has a policy of maintaining debt at fixed rate to ensure certainty of future interest cash flows. The directors will revisit the appropriateness of this policy should the company's operations change in size or nature.

Results
The loss before taxation was ?14,225,974 (2017: loss of ?35,536,466). The tax credit on loss was ?680,868 (2017: credit of ?864,915) which left a loss for the financial year of ?13,545,106 (2017: loss of ?34,671,551).
Dividends
The directors have not declared a interim dividend (2017: &lie. The directors have not declared a final dividend (2017: blip
Going concern
The directors believe that preparing the financial statements on the going concern basis is appropriate due to the continued financial support provided by British Telecommunications plc. Please refer to the accounting policies (page 12) for further details.
Directors
The directors of the Company who were in office during the year and up to the date of signing the financial statements were as follows:
Mark Genikis Louise Blackwell (resigned on 18 January 2018) Michael Mohun (joined on 1 June 2017) Christina Ryan (joined on 24 January 2018)

2.0
BT Ste Euro Limited
Directors' report (continued)
Directors' indemnities
As permitted by the Articles of Association, the Directors have the benefit of a Directors' and Officers' liability insurance, which is a qualifying third-party indemnity provision as defined by Section 234 of the Companies Act 2006. This indemnity, purchased by BT Group plc and applicable to the directors of BT Sle Euro Limited was in force throughout the last financial year and is currently in force. Neither the insurance nor the indemnity provides cover where the person has acted fraudulently or dishonestly.
Statement of Directors' Responsibilities in respect of the financial statements
The directors are responsible for preparing the Annual Report and the financial statements in accordance with applicable law and regulation.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have prepared the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards, comprising FRS 101 "Reduced Disclosure Framework", and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing the financial statements, the directors are required to:
?select suitable accounting policies and then apply them consistently;
?state whether applicable United Kingdom Accounting Standards, comprising FRS 101, have been followed, subject to any material departures disclosed and explained in the financial statements;
?make judgements and accounting estimates that are reasonable and prudent; and
?prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
The directors are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006.

3.0
BT Sle Euro Limited
Directors' report (continued)
Disclosure of information to the auditors
So far as each of the directors is aware, there is no relevant information that has not been disclosed to the Company's auditors and each of the directors believes that all steps have been taken that ought to have been taken to make them aware of any relevant audit information and to establish that the Company's auditors have been made aware of that information.

Independent auditors
PricewaterhouseCoopers LLP will stand down as the company's auditors and on the recommendation of the Audit & Risk Committee, the Board proposes that KPMG LLP be appointed as the company's new auditors in the absence of an Annual General Meeting.
The directors' report on pages Ito 4 was approved by the Board of directors on 31 July 2018 and were signed on its behalf by

Authorised Signatory for and on behalf of Newgate Street Secretaries Limited Company Secretary
2018-07-31 00:00:00

4.0
BT Sle Euro Limited
Independent 'auditors' report to the members of BT Sle Euro Limited
Report on the audit of the financial statements
Opinion
In our opinion, BT Sle Euro Limited's financial statements:
?give a true and fair view of the state of the company's affairs as at 31 March 2018 and of its loss for the year then ended;
?have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards, comprising FRS 101 "Reduced Disclosure Framework", and applicable law); and
?have been prepared in accordance with the requirements of the Companies Act 2006.
We have audited the financial statements, included within the Annual Report and Financial Statements (the "Annual Report"), which comprise: the balance sheet as at 31 March 2018; the profit and loss account for the year then ended, the statement of changes in equity for the year then ended; and the notes to the financial statements, which include a description of the significant accounting policies.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (UK) ("ISAs (UK)") and applicable law. Our responsibilities under ISAs (UK) are further described in the Auditors' responsibilities for the audit of the financial statements section of our report. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Independence
We remained independent of the company in accordance with the ethical requirements that are relevant to our audit of the financial statements in the UK, which includes the 141(C's Ethical Standard, and we have fulfilled our other ethical responsibilities in accordance with these requirements.
Conclusions relating to going concern
We have nothing to report in respect of the following matters in relation to which ISAs (UK) require us to report to you when:
?the directors' use of the going concern basis of accounting in the preparation of the financial statements is not appropriate; or
?the directors have not disclosed in the financial statements any identified material uncertainties that may cast significant doubt about the company's ability to continue to adopt the going concern basis of accounting for a period of at least twelve months from the date when the financial statements are authorised for issue.
However, because not all future events or conditions can be predicted, this statement is not a guarantee as to the company's ability to continue as a going concern.

5.0
BT Sle Euro Limited

Independent auditors' report to the members of BT Sle Euro Limited (Continued) Reporting on other information The other information comprises all of the information in the Annual Report other than the financial statements and our auditors' report thereon. The directors are responsible for the other information. Our opinion on the financial statements does not cover the other information and, accordingly, we do not express an audit opinion or, except to the extent otherwise explicitly stated in this report, any form of assurance thereon. In connection with our audit of the financial statements, our responsibility is to read the Other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the audit, or otherwise appears to be materially misstated. If we identify an apparent material inconsistency or material misstatement, we are required to perform procedures to conclude whether there is a material misstatement of the financial statements or a material misstatement of the other information. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report based on these responsibilities.
With respect to the Directors' Report, we also considered whether the disclosures required by the UK Companies Act 2006 have.been included. Based on the responsibilities described above and our work undertaken in the course of the audit, ISAs (UK) require us also to report certain opinions and matters as described below.
Directors' Report In our opinion, based on the work undertaken in the course of the audit, the information given in the Directors' Report for the year ended 31 March 2018 is consistent.with the financial statements and has been prepared in accordance with applicable legal requirements. In light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we did not identify any material misstatements in the Directors' Report.
Responsibilities for the financial statements and the audit Responsibilities of the directors for the financial statements As explained more fully in the Statement of Directors' reponsibilities in respect of the financial statements set out on page 3, the directors are responsible for the preparation of the financial sfatements in accordance with the applicable framework and for being satisfied that they give a true and fair view. The directors are also responsible for such internal control as they determine is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, the directors are responsible for assessing the company's ability to continue as a going concern, disclosing as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the company or to cease operations, or have no realistic alternative but to do so.

6.0
BT Sle Euro Limited

Independent auditors' report to the members of BT Sle Euro Limited (Continued)
Auditors' responsibilities for the audit of the financial statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are.free from material misstatement, whether due to fraud or error, and to issue an auditors' report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. A further description of our responsibilities for the audit of the financial statements is located on the FRC's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditors' report. Use of this report This report, including the opinions, has been prepared for and only for the company's members as a body in accordance with Chapter 3 of Part 16 of the Companies Act 2006 and for no other purpose. We do not, in giving these opinions, accept or assume responsibility for any other purpose or to any other person to whom this report is shown or into whose hands it may come save where expressly agreed by our prior consent in writing. Other required reporting Companies Act 2006 exception reporting Under the Companies Act 2006 we are required to report to you if, in our opinion: ?we have not received all the information and explanations we require for our audit; or ?adequate accounting records have not been kept by the company, or returns adequate for our audit have not been received from branches not visited by us; or ?certain disclosures of directors' remuneration specified by law are not made; or ?the financial statements are not in agreement with the accounting records and returns. We have no exceptions to report arising from this responsibility.
Entitlement to exemptions Under the Companies Act 2006 we are required to report to you if, in our opinion, the directors were not entitled to: prepare financial statements in accordance with the small companies regime; and take advantage of the small companies exemption from preparing a strategic report. We have no exceptions to report arising from this responsibility.

Sharron Moran (Senior Statutory Auditor) for and on behalf of PricewaterhouseCoopers LLP Chartered Accountants and Statutory Auditors Glasgow 2018-07-02 00:00:00

7.0
BT Sic Euro Limited
Profit and loss account for the year ended 31 March 2018
Sheet1

All results derive from continuing operations.
There has been no other comprehensive income/expense during either 2018 or 2017 other than as disclosed in the profit and loss account and therefore no separate statement of comprehensive income has been presented.

8.0
BT Sle Euro Limited

Directors Report 2

Directors' report for the year ended 31 March 2017
The directors submit their report and the audited financial statements of BT Sle Euro Limited (the "Company") for the year ended 31 March 2017. The registered number of the Company is 7573610.
The directors' report has been prepared in accordance with the special provisions relating to small companies within Part 15 of the Companies Act 2006.
Principal activities and future developments
The Company's principal activity is to act as an investment holding company within the British Telecommunications plc group of companies. The directors do not anticipate any change in the Company's principal activity in the foreseeable future.
Principal risks and uncertainties
The principal risks to which BT Group plc (the ultimate controlling entity of the Company) is exposed are also the principal matters which would create risk and uncertainty for the Company. These are managed by the directors of BT Group plc at the group level rather than at an individual business unit level. They are discussed on pages 44-54 of the group's 2017 financial statements which does not form part of this report. Financial risk management Credit risk
Credit risk arises from cash and cash equivalents, and deposits with banks and financial institutions, as well as credit exposures to wholesale and retail customers, including outstanding receivables and committed transactions. For banks and financial institutions, only independently rated parties with a minimum rating .of 'A' are accepted. If wholesale customers are independently rated, these ratings are used. If there is no independent rating, risk control assesses the credit quality of the customer, taking into account its financial position, past experience and other factors. Individual risk limits are set based on internal or external ratings in accordance with limits set by the board. The utilisation of credit limits is regularly monitored. The amount of exposure to any individual counterparty is subject to a limit, which is reassessed annually by the board.
Liquidity risk The company actively maintains a mixture of long-term and short-term debt finance that is designed to ensure the company has sufficient available funds for operations and planned expansions. BT Ste Euro Limited 2 Directors' report for the year ended 31 March 2017 (continued) Interest rate cash flow risk
The company has both interest-bearing assets and interest-bearing liabilities. Interest-bearing assets include only government securities and cash balances, all of which earn interest at fixed rate. The company has a policy of maintaining debt at fixed rate to ensure certainty of future interest cash flows. The directors will revisit the appropriateness of this policy should the company's operations change in size or nature.
Results
The loss before taxation was ?35,536,466 (2016: ?39,566,120). The tax on loss was ?864,915 (2016: ?944,827) which left a loss for the financial year of ?34,671,551 (2016: ?38,621,293).
Dividends
The directors do not recommend the payment of a dividend in respect of the year ended 31 March 2017 (2016: ?ni1).
Going Concern
The directors believe that preparing the financial statements on the going concern bais is appropriate due to the continued financial support provided by British Telecommunications plc. Please refer to the accounting policies (page 13) for further details.
Directors
The directors of the company who were in office during the year and up to the date of signing the financial statements were:
Mark Genikis Louise Blackwell (joined on 9 December 2016) Alberto Buffa (resigned on 9 December 2016) Michael Mohun (joined on 1 June. 2017)
Directors' indemnities
As permitted by the Articles of Association, the Directors have the benefit of an indemnity which is a qualifying third party indemnity provision as defined by Section 234 of the Companies Act 2006. The indemnity was in force throughout the last financial year and is currently in force. Also, BT Group plc purchased and maintained throughout the financial year Directors' and Officers' liability insurance in respect of BT Sle Euro Limited and its Directors.
BT Sle Euro Limited 3 Directors' report for the year ended 31 March 2017 (continued)
Statement of directors' responsibilities
The directors are responsible for preparing the Directors' Report and the financial statements in accordance with applicable law and regulation. Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have prepared the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards, comprising FRS 101 "Reduced Disclosure Framework", and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing the financial statements, the directors are required to: ?select suitable accounting policies and then apply them consistently; ?state whether applicable United Kingdom Accounting Standards, comprising FRS 101,
financial statements; ?make judgements and accounting estimates that are reasonable and prudent; and ?prepare the financial statements on the going concern basis unless it is inappropriate to
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006.
The directors are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
Disclosure of information to the auditors
So far as each of the directors is aware, there is no relevant information that has not been disclosed to the Company's auditors and each of the directors believes that all steps have been taken that ought to have been taken to make them aware of any relevant audit information and to establish that the Company's auditors have been made aware of that information.
Independent auditors
PricewaterhouseCoopers LLP has indicated its willingness to be reappointed for another term and appropriate arrangements are being made for it to be deemed reappointed as auditors in the absence of an Annual General Meeting.
BT Sle Euro Limited 4
Directors' report for the year ended 31 March 2017 (continued)
The directors' report on pages 1 to 4 was approved by the Board of directors on 8 September 2017 and was signed by order of the board by

Authorised Signatory for and on behalf of Newg te Street Secretaries Limited Company Secretary 2017-09-08 00:00:00 BT Ste Euro Limited 5
Independent auditors' report to the members of BT Ste Euro Limited Report on the financial statements Our opinion
In our opinion, BT Sle Euro Limited's financial statements (the "financial statements"): ?give a true and fair view of the state of the company's affairs as at 31 March 2017
?have been properly prepared in accordance with United Kingdom Generally
?have been prepared in accordance with the requirements of the Companies Act
What we have audited
The financial statements, included within the Directors' Report and Financial Statements (the "Annual Report"), comprise: ?the Balance Sheet as at 31 March 2017; ?the Profit and loss account for the year then ended; ?the Statement of changes in equity for the year then ended; and ?the notes to the financial statements, which include a summary of significant accounting policies and other explanatory information. The financial reporting framework that has been applied in the preparation of the financial statements is United Kingdom Accounting Standards, comprising FRS 101 "Reduced Disclosure Framework", and applicable law (United Kingdom Generally Accepted Accounting Practice).
In applying the financial reporting framework, the directors have made a number of subjective judgements, for example in respect of significant accounting estimates. In making such estimates, they have made assumptions and considered future events.
Opinion on other matter prescribed by the Companies Act 2006 In our opinion, based on the work undertaken in the course of the audit:
?the information given in the Direotors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
?the Directors' Report has been prepared in accordance with applicable legal requirements.
In addition, in light of the knowledge and understanding of the company and its environment obtained in the course of the audit, we are required to report if we have identified any material misstatements in the Directors' Report. We have nothing to report in this respect.
BT Ste Euro Limited 6

Independent auditors' report to the members of BT Ste Euro Limited (continued)
Other matters on which we are required to report by exception Adequacy of accounting records and information and explanations received
Under the Companies Act 2006 we are required to report to you if, in our opinion: ?we have not received all the information and explanations we require for our
?adequate accounting records have not been kept, or returns adequate for our audit
?the financial statements are not in agreement with the accounting records and
We have no exceptions to report arising from this responsibility. Directors' remuneration
Under the Companies Act 2006 we are required to report to you if, in our opinion, certain disclosures of directors' remuneration specified by law are not made. We have no exceptions to report arising from this responsibility.
Entitlement to exemptions
Under the Companies Act 2006 we are required to report to you if, in our opinion, the directors were not entitled to: prepare financial statements in accordance with the small companies' regime; and take advantage of the small companies' exemption from preparing a strategic report. We have no exceptions to report arising from this responsibility. Responsibilities for the financial statements and the audit Our responsibilities and those of the directors
As explained more fully in the Statement of directors' responsibilities set out on page 3, the directors are responsible for the preparation of the financial statements and for being satisfied that they giv' e a true and fair view.
Our responsibility is to audit and express an opinion on the financial statements in accordance with applicable law and International Standards on Auditing (UK and Ireland) ("ISAs (UK & Ireland)"). Those standards require us to comply with the Auditing Practices Board's Ethical Standards for Auditors.
BT Sic Euro Limited 7

Independent auditors' report to the members of BT Ste Euro Limited (continued)
Our responsibilities and those of the directors (Continued)
This report, including the opinions, has been prepared for and only for the parent company's members as a body in accordance with Chapter 3 of Part 16 of the Companies Act 2006 and for no other purpose. We do not, in giving these opinions, accept or assume responsibility for any other purpose or to any other person to whom this report is shown or into whose hands it may come save where expressly agreed by our prior consent in writing.
What an audit of financial statements involves
We conducted our audit in accordance with ISAs (UK & Ireland). An audit involves obtaining evidence about the amounts and disclosures in the financial statements sufficient to give reasonable assurance that the financial statements are free from material misstatement, whether caused by fraud or error. This includes an assessment of: ?whether the accounting policies are appropriate to the company's circumstances
?the reasonableness of significant accounting estimates made by the directors; and ?the overall presentation of the financial statements. We primarily focus our work in these areas by assessing the directors' judgements against available evidence, forming our own judgements, and evaluating the disclosures in the financial statements.
We test and examine information, using sampling and other auditing techniques, to the extent we consider necessary to provide 0. reasonable basis for us to draw conclusions. We obtain audit evidence through testing the effectiveness of controls, substantive procedures or a combination of both.
In addition, we read all the financial and non-financial information in the Annual Report; to identify material inconsistencies with the audited financial statements and to identify any information that is apparently materially incorrect based on, or materially inconsistent with, the knowledge acquired by us in the course of performing the audit. If we become aware of any apparent material misstatements or inconsistencies we consider the implications for our report. With respect to the Directors' Report, we consider whether this report includes the disclosures required by applicable legal requirements.

Sharron Moran (Senior Statutory Auditor) for and on behalf of PricewaterhouseCoopers LLP Chartered Accountants and Statutory Auditors Glasgow 2017-09-12 00:00:00 Sheet1 All results derive from continuing operations.
There have been no other comprehensive income either 2017 or 2016 other than as disclosed in the profit 'and loss account and therefore no separate statement of comprehensive income has been presented. Sheet2
The financial statements on pages 8 to 18 were approved by the Board of direct9rs on 8 Septembe4 17 and signed on its behalf by

Michael Mohun Director
BT Sle Euro Limited 10
Statement of changes in equity for the year ended 31 March 2017
Sheet3 At 1 April 2015 Loss for the year and total comprehensive expense At 31 March 2016.0 Loss for the year and total comprehensive expense
At 31 March 2017.0
BT Ste Euro Limited 11
Notes to the financial statements
1.General Information
BT Sle Euro Limited acts as a finance company within the British Telecommunications plc ("BT") group of companies.
The company is a private company and is incorporated and domiciled in the UK. The address of its registered office is 81 Newgate Street, London EC1A 7AJ. 2.Basis of accounting and accounting policies Preparation of the financial statements
The financial statements have been prepared in accordance with Financial Reporting Standard 101, "Reduced Disclosure Framework" (FRS 101), which involves the application of International Financial Reporting Standards (IFRS) with a reduced level of disclosure.
The financial statements have been prepared under the historic cost convention and in accordance with the Companies Act 2006 as applicable to companies using FRS 101.The preparation of financial statements in accordance with FRS 101 requires the use of certain critical accounting estimates. It also requires management to exercise judgement in the process of applying the company's accounting policies. There are no areas involving a higher degree of complexity, or areas where assumption and estimates are significant to the financial statements.
Exemptions
As permitted by FRS 101, the company has taken advantage of the disclosure exemptions available under that standard. The following exemptions have been taken: ?The requirements of IAS 7 Statement of Cash Flows. ?The requirements of paragraphs 17 and 18A of IAS 24 Related Party Disclosures. ?The requirements of paragraphs 6 and 21 of IFRS 1 'First-time Adoption of International Financial Reporting Standards' to present an opening statement of financial position at the date of transition. ?The following paragraphs of IAS 1 'Presentation of Financial Statements': ?10(d) (statement of cash flows); ?10(f) (third statement of financial position); ?16 (statement of compliance with all IFRS); ?38A (requirement for minimum of two primary statements including cash flow statements); ?38B-D (additional comparative information); ?40A-D (third statement of financial position); and ?111 (cash flow statement information); and ?134 to 136 (capital management disclosures).
The company intends to continue to take advantage of these exemptions in future years.
BT Ste Euro Limited 12
Notes to the financial statements (continued)
2. Basis of accounting and accounting policies (continued)
Where required, equivalent disclosures have been given in the consolidated financial statements of BT Group plc.
The accounting policies set out on pages 11 to 14 have been applied in preparing the financial statements for the year ended 31 March 2017, the comparative information for the year ended 31 March 2016.
New, and amended accounting standards effective during the year:
There are no new or amended accounting standards or interpretations adopted during the year that have a significant impact on the financial statements.
New and amended accounting standards that have been issued but are not yet effective
The following standards have been issued and are effective for accounting periods ending on or after 1 April 2017 and are expected to have an impact on the Company's financial statements. The impact of these on the financial statements are being considered by the Company.
-IFRS 9 'Financial instruments' will be effective for periods beginning on or after 1 January 2018.
Accounting policies
Investments
Investments are carried at cost less provision for impairment. Investments are tested for impairment by the directors when an event that might affect asset values has occurred. An impairment loss is recognised to the extent that the carrying amount cannot be recovered either by selling the asset or through continuing to hold the asset as measured by the discounted future cash flows from the investment.
Interest income
Interest income is recognised using the effective interest method. When a loan and receivable is impaired, the company reduces the carrying amount to its recoverable amount, being the estimated future cash flow discounted at the original effective interest rate of the instrument, and continues unwinding the discount as interest income. Interest income on impaired loans and receivables is recognised using the original effective interest rate.
BT Sle Euro Limited 13
Notes to the financial statements (continued)
2. Basis of accounting and accounting policies (continued)
Going Concern ?. The directors have satisfied themselves that the Company will continue to have financial support provided by British Telecommunications plc in order to meet its requirements for at least the next year, and therefore believe that preparing the financial statements-on the going concern basis is appropriate.
Foreign currencies
The financial statements are presented in pounds sterling, which is the currency of the primary economic environment in which the Company operates (its functional currency).
Foreign currency transactions are translated into the reporting currency using the exchange rates prevailing at the date of the transaction. Foreign exchange gains and losses resulting from the settlement of transactions and the translation of monetary assets and liabilities denominated in foreign currencies at period end exchange rates are recognised in the profit and loss account in the line that most appropriately reflects the nature of the item or transaction.
Current and deferred income tax
Current income tax is calculated on the basis of the tax laws enacted or substantively enacted at the balance sheet date. The company periodically evaluates positions taken in tax returns with respect to situations in which applicable tax regulation is subject to interpretation, and the company establishes provisions where appropriate on the basis of the. amounts expected to be paid to the tax authorities.
Deferred tax is recognised using the liability method, in respect of temporary differences between the carrying amount of the company's assets and liabilities and their tax base. A deferred tax asset is recognised only when, on the basis of all available evidence, it can be regarded as probable that there will be suitable taxable profits, within the, same jurisdiction, in the foreseeable future against which the deductible temporary difference Can be utilised.
Deferred tax is determined using tax rates that are expected to apply in periods in which the asset is realised or liability settled, based on tax rates and laws that have been enacted or substantively enacted by the balance sheet date. Deferred tax balances are not discounted.
BT Ste Euro Limited 14
Notes to the financial statements (continued)
2. Basis of accounting and accounting policies (continued)
Financial assets
Loans and receivables
Loans and receivables are non-derivative financial s.assets with fixed or determinable payments that are not quoted in an active market other than those for which the company may not recover substantially all of its initial investment, other than because of credit deterioration, which are classified as available-for-sale. Loans and receivables are initially recognised at fair value plus transaction costs and subsequently carried at amortised cost using the effective interest method, with changes in carrying value recognised in the profit and loss account.
Debtors
Financial assets within debtors are initially recognised at fair value, which is usually the original invoiced amount, and are subsequently carried at amortised cost using the effective interest method less provisions made for doubtful debts. Provisions are made specifically where there is evidence of a risk of non-payment, taking into account ageing, previous losses experienced and general economic conditions. Financial liabilities Creditors
Financial liabilities within creditors are initially, recognised at fair value, which is usually the original invoiced amount, and subsequently carried at amortised cost using the effective interest method.
Loans and other borrowings
Loans and other borrowings are initially recognised at fair value plus directly attributable transaction costs. Loans and other borrowings are subsequently measured at amortised cost using the effective interest method and, if included in a fair value hedge relationship, are re- valued to reflect the fair value movements on the hedged risk associated with the loans and other borrowings. The resulting amortisation of fair value movements, on designation of the hedge, are recognised in the profit and loss account.
BT Ste Euro Limited 15
Notes to the financial statements (continued)
3 Operating loss
Operating loss stated after charging:

Auditors' remuneration for statutory audit

4 Finance expenses

2017 2016

4,500 7,100 2017 2016

Foreign exchange loss (31,211,892) (35,083,601)

5 Directors' emoluments
The directors are employed and remunerated by British Telecommunications plc or other group companies in respect of their services to the BT group as a whole. No emoluments were paid to the directors in respect of their services to the Company in the year ended 31 March 2017 (2016: flub.
6 Employee information
The average monthly number of persons employed by the Company during the year was nil (2016: nil).
7 Interest receivable and similar income Sheet4 Interest payable to group undertaking (4,337,299) (4,519,042)
BT Sle Euro Limited? 16 Notes to the financial statements (continued)
9 Tax on loss on ordinary activities
2017 2016

Current tax:
UK corporation tax at 20% (2016: 20%)
(864,915) (944,827) Tax credit on ordinary activities (864,915) (944,827)
The tax assessed for the year is lower (2016: lower) than the standard rate of corporation tax in the UK of 20% (2016: 20%) as explained below: 2017 2016

Loss on ordinary activities before taxation
Tax calculated at UK standard rate of corporation tax of 20% (2016: 20%)
Foreign exchange loss not deductible
Total tax credit reported in the income statement (35,536,466) (39,566,120)
(7,107,293) (7,913,224)

6,242,378 6,968,397
(864,915) (944,827)

The rate of UK corporation tax will reduce from 20% to 19% on 1 April 2017 and to 17% on 1 April 2020. These rate changes will be applied to the future results of the Company but will have no effect on the current year as the Company has no (2016: nil) deferred tax timing differences.
10 Investments

Cost and net book value at 1 April 2016 and 31 March 2017 Associated Undertaking Shares

1334069361.0
Brief details of the associated undertakings were as follows: Company Company Activity Percentage of Number of Shares Address name allocated ordinary share capital owned

Tudor Minstrel

Finance Company

0.23684 8! Newgate
London, EC1A 7AJ, 675,000,000 C Ordinary United Shares Kingdom BT Ste Euro Limited 17 Notes to the financial statements (continued) 10 Investments (continued)
In the opinion of the directors, the carrying value of the investment is supported by its underlying net assets.
11 - Debtors Sheet5 Amounts owed by group undertakings include an interest bearing (EURO 12 month EURIBOR plus 30 basis points) loan facility of ?5,855,407 (2016: ?4,555,378) to British Telecommunications plc and is receivable on demand.
12 Creditors: amounts falling due within one year
Sheet6 Amounts owed to group undertakings include an interest bearing (EURO 12 month EURIBOR plus 90 basis points) loan facility of ?436,157,118 (2016: ?399,953,161) from British Telecommunications plc and is repayable on demand.
13 Called up share capital
2017 2016
Allotted, called up and fully paid: 225,110,000 (2016: 225,110,000) ordinary shares of El each 198,264,929 198,264,929
BT Ste Euro Limited 18 Notes to the financial statements (continued) 14 Contingent liabilities
At 31 March 2017, there are no (2016: nil) contingent liabilities or guarantees other than those arising in the ordinary course of the Company's business and on these no (2016: nil) material losses are anticipated.
15 Controlling entities
The Company is a wholly owned subsidiary of British Telecommunications plc, which is the immediate controlling entity. The ultimate controlling entity is BT Group plc.
The parent undertaking of the largest group of companies into which the results of the Company are consolidated is BT Group plc, a company incorporated in England & Wales. Consequently the Company is exempt under the terms of IAS 24 "Related Party Disclosures" from disclosing details of transactions and balances with BT Group plc and fellow group subsidiaries provided such subsidiaries are wholly owned members of the group during the year ended 31 March 2017. Copies of the financial statements of BT Group plc may be obtained from The Secretary, BT Group plc, 81 Newgate Street, London EC1A

Directors Report 3

Directors' report for the year ended 31 March 2016
The directors submit their report and the audited financial statements of BT Sle Euro Limited (the "Company") for the year ended 31 March 2016. The registered number of the Company is 7573610.
The directors' report has been prepared in accordance with the special provisions relating to small companies within Part 15 of the Companies Act 2006.
Principal activities and future developments
The Company's principal activity is to act as an investment holding company within the British Telecommunications plc group of companies. The directors do not anticipate any change in the Company's principal activity in the foreseeable future.
First-time adoption of FRS 101
For all periods up to and including the year ended 31 March 2015, the Company prepared its separate financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (UK GAAP). The Company's annual financial statements for the year ended 31 March 2016 are the first that the Company has prepared in accordance with FRS 101 "Reduced Disclosure Framework" which involves the application of International Financial Reporting Standards (IFRS) with a reduced level of disclosure. The standard is effective for periods beginning on or after 1 January 2015.
The Company meets the definition of a qualifying subsidiary under FRS 100. Accordingly, in the year ended 31 March 2016 the Company has undergone transition from reporting under previous UK GAAP to FRS 101 'Reduced Disclosure Framework'. As required by FRS 101, these financial statements include comparative FRS101 financial information for the year ended 31 March 2015. FRS 101 incorporates, with limited amendments, International Financial Reporting Standards (MRS).
Principal risks and uncertainties
The principal risks to which BT Group plc (the ultimate controlling entity of the Company) is exposed are also the principal matters which would create risk and uncertainty for the Company. These are managed by the directors of BT Group plc at the group level rather than at an individual business unit level. They are discussed on pages 46-56 of the group's 2016 annual report which does not form part of this report.
BT Sle Euro Limited 2 Directors' report for the year ended 31 March 2016 (Continued) Financial risk management Credit risk
Credit risk arises from cash and cash equivalents, and deposits with banks and financial institutions, as well as credit exposures to wholesale and retail customers, including outstanding receivables and committed transactions. For banks and financial institutions, only independently rated parties with a minimum rating of 'A' are accepted. If wholesale customers are independently rated, these ratings are used. If there is no independent rating, risk control assesses the credit quality of the customer, taking into account its financial position, past experience and other factors. Individual risk limits are set based on internal or external ratings in accordance with limits set by the board. The utilisation of credit limits is regularly monitored. The amount of exposure to any individual counterparty is subject to a limit, which is reassessed annually by the board.
Liquidity risk
The company actively maintains a mixture of long-term and short-term debt finance that is designed to ensure the company has sufficient available funds for operations and planned expansions.
Interest rate cash flow risk
The company has both interest-bearing assets and interest-bearing liabilities. Interest-bearing assets include only government securities and cash balances, all of which earn interest at fixed rate. The company has a policy of maintaining debt at fixed rate to ensure certainty of future interest cash flows. The directors will revisit the appropriateness of this policy should the company's operations change in size or nature.
Results
The loss on ordinary activities before taxation was ?39,566,120 (2015: profit of ?44,593,547). The tax credit on profit on ordinary activities was ?944,827 (2015: ?1,385,602) which left a loss after taxation for the financial year of ?38,621,293 (2015: profit of ?45,979,149).
Dividends
The directors do not recommend the payment of a dividend in respect of the year ended 31 March 2016 (2015: ?ni1).
Going Concern
The directors believe that preparing the financial statements on the going concern basis is appropriate due to the continued financial support provided by British Telecommunications plc. Please refer to the accounting policies (page 13) for further details.
BT Sle Euro Limited 3 Directors' report for the year ended 31 March 2016 (Continued)
Directors
The directors of the company who were in office during the year and up to the date of signing the financial statements were:
M P Genikis P N Allenby (resigned on 18 May 2015) Alberto Buffa (appointed on 18 May 2015)
Directors' indemnities
As permitted by the Articles of Association, the Directors have the benefit of an indemnity which is a qualifying third party indemnity provision as defined by Section 234 of the Companies Act 2006. The indemnity was in force throughout the last financial year and is currently in force. Also, BT Group plc purchased and maintained throughout the financial year Directors' and Officers' liability insurance in respect of BT Sle Euro Limited and its Directors.
Statement of Directors' Responsibilities
The directors are responsible for preparing the Directors' Report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have prepared the financial statements in accordance with applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice), including Financial Reporting Standard 101 Reduced Disclosure Framework (FRS 101).
Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Company and of the profit or loss of the Company for that period. In preparing these financial statements, the directors are required to: ?select suitable accounting policies and then apply them consistently; ?make judgements and accounting estimates that are reasonable and prudent; ?state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; ?notify the company's shareholders in writing about the use of disclosure exemptions, if any, of FRS 101 used in the preparation of the financial statements; and ?prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
BT Sle Euro Limited 4 Directors' report for the year ended 31 March 2016 (Continued)
Disclosure of information to the auditors
So far as each of the directors is aware, there is no relevant information that has not been disclosed to the Company's auditors and each of the directors believes that all steps have been taken that ought to have been taken to make them aware of any relevant audit information and to establish that the Company's auditors have been made aware of that information.
Independent auditors
PricewaterhouseCoopers LLP have indicated their willingness to be reappointed for another term and appropriate arrangements are being made for them to be deemed reappointed as auditors in the absence of an Annual General Meeting.

The directors' report on pages 1 to 4 was approved by the Board of directors on 13 September 2016 and was signed by order of the board by Christina Ryan.

Authorised Signato for and on behalf of Newgate Street Secretaries Limited Company Secretary 2016-09-14 00:00:00
BT Ste Euro Limited
Independent auditors' report to the member of BT Ste Euro Limited Report on the financial statements Our opinion
In our opinion, BT Sle Euro Limited's financial statements (the "financial statements"): ?give a true and fair view of the state of the company's affairs as at 31 March 2016
?have been properly prepared in accordance with United Kingdom Generally
?have been prepared in accordance with the requirements of the Companies Act
What we have audited
The financial statements, included within the Directors' Report and Financial Statements (the "Annual Report"), comprise: ?the Balance Sheet as at 31 March 2016; ?the Profit and loss account for the year then ended; ?the Statement of changes in equity for the year then ended; and ?the notes to the financial statements, which include a summary of significant accounting policies and other explanatory information. The financial reporting framework that has been applied in the preparation of the financial statements is United Kingdom Accounting Standards, comprising FRS 101 "Reduced Disclosure Framework", and applicable law (United Kingdom Generally Accepted Accounting Practice).
In applying the financial reporting framework, the directors have made a number of subjective judgements, for example in respect of significant accounting estimates. In making such estimates, they have made assumptions and considered future events.
Opinion on other matter prescribed by the Companies Act 2006 In our opinion, the information given in the Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements.
Other matters on which we are required to report by exception Adequacy of accounting records and information and explanations received
Under the Companies Act 2006 we are required to report to you if, in our opinion: ?we have not received all the information and explanations we require for our
?adequate accounting records have not been kept, or returns adequate for our audit
?the financial statements are not in agreement with the accounting records and returns. We have no exceptions to report arising from this responsibility. BT Ste Euro Limited 6

Independent auditors' report to the members of BT Ste Euro Limited (continued)
Directors' remuneration
Under the Companies Act 2006 we are required to report to you if, in our opinion, certain disclosures of directors' remuneration specified by law are not made. We have no exceptions to report arising from this responsibility.
Entitlement to exemptions
Under the Companies Act 2006 we are required to report to you if, in our opinion, the directors were not entitled to: prepare financial statements in accordance with the small companies regime; and take advantage of the small companies exemption from preparing a strategic report. We have no exceptions to report arising from this responsibility. Responsibilities for the financial statements and the audit Our responsibilities and those of the directors
As explained more fully in the Statement of directors' responsibilities set out on pages 3-4, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view.
Our responsibility is to audit and express an opinion on the financial statements in accordance with applicable law and International Standards on Auditing (UK and Ireland) ("ISAs (UK & Ireland)"). Those standards require us to comply with the Auditing Practices Board's Ethical Standards for Auditors.
This report, including the opinions, has been prepared for and only for the parent company's members as a body in accordance with Chapter 3 of Part 16 of the Companies Act 2006 and for no other purpose. We do not, in giving these opinions, accept or assume responsibility for any other purpose or to any other person to whom this report is shown or into whose hands it may come save where expressly agreed by our prior consent in writing.
What an audit of financial statements involves
We conducted our audit in accordance with ISAs (UK & Ireland). An audit involves obtaining evidence about the amounts and disclosures in the financial statements sufficient to give reasonable assurance that the financial statements are free from material misstatement, whether caused by fraud or error. This includes an assessment of: ?whether the accounting policies are appropriate to the company's circumstances
?the reasonableness of significant accounting estimates made by the directors; and ?the overall presentation of the financial statements.
BT Sle Euro Limited 7
Independent auditors' report to the members of BT Ste Euro Limited (continued)
We primarily focus our work in these areas by assessing the directors' judgements against available evidence, forming our own judgements, and evaluating the disclosures in the financial statements.
We test and examine information, using sampling and other auditing techniques, to the extent we consider necessary to provide a reasonable basis for us to draw conclusions. We obtain audit evidence through testing the effectiveness of controls, substantive procedures or a combination of both.
In addition, we read all the financial and non-financial information in the Annual Report to identify material inconsistencies with the audited financial statements and to identify any information that is apparently materially incorrect based on, or materially inconsistent with, the knowledge acquired by us in the course of performing the audit. If we become aware of any apparent material misstatements or inconsistencies we consider the implications for our report. u16- 11) at Gvt.
Julie Watson (Senior Statutory Auditor) for and on behalf of PricewaterhouseCoopers LLP Chartered Accountants and Statutory Auditors Aberdeen 2016-09-14 00:00:00 Sheet1 All results derive from continuing operations.
There have been no recognised gains or losses during either 2016 or 2015 other than as disclosed in the profit and loss account and therefore no separate statement of total comprehensive income has been presented.
There were no material differences between the results as disclosed above and the results on an unmodified historical cost basis.

'These figures have been restated to reclassify the amount of forex (loss)/ gain from administrative expense/ (income) to finance (expense)/ income. Sheet2
The financial statements on pages 8 to 18 were approved and authorised for issue by the Board of directors on 13 September 2016 and were signed on its behalf by Alberto Buffa.

0,11)ca-o 13-00? Alberto Buffa Director
BT Ste Euro Limited 10 Statement of changes in equity for the year ended 31 March 2016
Sheet3 BT Sle Euro Limited 11

1.General Information
BT Ste Euro Limited acts as a finance company within the British Telecommunications plc ("BT") group of companies.
The company is a private company and is incorporated and domiciled in the UK. The address of its registered office is 81 Newgate Street, London EC1A 7AJ. 2.Basis of accounting and accounting policies Preparation of the financial statements
The financial statements have been prepared in accordance with Financial Reporting Standard 101, "Reduced Disclosure Framework" (FRS 101), which involves the application of International Financial Reporting Standards (IFRS) with a reduced level of disclosure. For all periods up to and including the year ended 31 March 2015, the Company prepared its separate financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (UK GAAP).
The financial statements have been prepared under the historic cost convention and in accordance with the Companies Act 2006 as applicable to companies using FRS 101.The preparation of financial statements in accordance with FRS 101 requires the use of certain critical accounting estimates. It also requires management to exercise judgement in the process of applying the company's accounting policies. There are no areas involving a higher degree of complexity, or areas where assumption and estimates are significant to the financial statements.
The company meets the definition of a qualifying subsidiary under FRS 100. Accordingly, in the year ended 31 March 2016 the company has undergone transition from reporting under previous UK GAAP to FRS 101 'Reduced Disclosure Framework'. As required by FRS 101, these financial statements include comparative FRS101 financial information for the year ended 31 March 2015. FRS 101 incorporates, with limited amendments, International Financial Reporting Standards (IFRS).
Exemptions
As permitted by FRS 101, the company has taken advantage of the disclosure exemptions available under that standard. The following exemptions have been taken: ?The requirements of IAS 7 Statement of Cash Flows. ?The requirements of paragraphs 17 and 18A of IAS 24 Related Party Disclosures. ?The requirements of paragraphs 6 and 21 of IFRS 1 'First-time Adoption of International Financial Reporting Standards' to present an opening statement of financial position at the date of transition. ?The following paragraphs of IAS 1 'Presentation of Financial Statements': ?10(d) (statement of cash flows); ?10(f) (third statement of financial position); BT Sic Euro Limited 12 ?16 (statement of compliance with all 'FRS);

Basis of accounting and accounting policies (Continued)
?38A (requirement for minimum of two primary statements including cash flow statements); ?38B-D (additional comparative information); ?40A-D (third statement of financial position); and ?111 (cash flow statement information);- and ?134 to 136 (capital management disclosures).
The company intends to continue to take advantage of these exemptions in future years.
Where required, equivalent disclosures have been given in the consolidated financial statements of BT Group plc. Previous UK GAAP differs in certain respects from FRS 101 and comparative information has been re-presented as necessary in accordance with FRS 101. There were no measurement differences on transition from UK GAAP to FRS 101 and therefore no opening reconciliation of Equity is presented.
The accounting policies set out on pages 12 to 14 have been applied in preparing the financial statements for the year ended 31 March 2016, the comparative information for the year ended 31 March 2015 and the preparation of an opening balance sheet at 1 April 2014, the company's date of transition.
The Company's annual financial statements for the year ended 31 March 2016 are the first that the Company has prepared in accordance with the FRS 101 as issued by the Financial Reporting Council. The transition from UK GAAP to FRS did not have any reconciling items in the financial statements.
Transition to FRS 101
The accounting policies set out on pages 12 to 14 have been applied in preparing the financial statements for the year ended 31 March 2016, the comparative information for the year ended 31 March 2015.
The transition from UK GAAP to FRS 101 required no adjustments to amounts previously reported in the financial statements.
Accounting policies
Investments
Investments are carried at cost less provision for impairment. Investments are tested for impairment by the directors when an event that might affect asset values has occurred. An impairment loss is recognised to the extent that the carrying amount cannot be recovered either by selling the asset or by the discounted future cash flows from the investment.
BT Sle Euro Limited 13

Basis of accounting and accounting policies (Continued)
Interest income
Interest income is recognised using the effective interest method. When a loan and receivable is impaired, the company reduces the carrying amount to its recoverable amount, being the estimated future cash flow discounted at the original effective interest rate of the instrument, and continues unwinding the discount as interest income. Interest income on impaired loan and receivables is recognised using the original effective interest rate.
Going Concern
The directors have satisfied themselves that the Company will continue to have financial support provided by British Telecommunications plc in order to meet its requirements for at least the next year, and therefore believe that preparing the accounts on the going concern basis is appropriate.
Foreign currencies
The financial statements are presented in pounds sterling, which is the currency of the primary economic environment in which the Company operates (its functional currency).
Foreign currency transactions are translated into the reporting currency using the exchange rates prevailing at the date of the transaction. Foreign exchange gains and losses resulting from the settlement of transactions and the translation of monetary assets and liabilities denominated in foreign currencies at period end exchange rates are recognised in the profit and loss account in the line that most appropriately reflects the nature of the item or transaction.
Current and deferred income tax
Current income tax is calculated on the basis of the tax laws enacted or substantively enacted at the balance sheet date. The company periodically evaluates positions taken in tax returns with respect to situations in which applicable tax regulation is subject to interpretation, and the company establishes provisions where appropriate on the basis of the amounts expected to be paid to the tax authorities.
Deferred tax is recognised using the liability method, in respect of temporary differences between the carrying amount of the company's assets and liabilities and their tax base. A deferred tax asset is recognised only when, on the basis of all available evidence, it can be regarded as probable that there will be suitable taxable profits, within the same jurisdiction, in the foreseeable future against which the deductible temporary difference can be utilised.
Deferred tax is determined using tax rates that are expected to apply in periods in which the asset is realised or liability settled, based on tax rates and laws that have been enacted or substantively enacted by the balance sheet date. Deferred tax balances are not discounted.
BT Ste Euro Limited 14 Basis of accounting and accounting policies (Continued)
Financial assets
Loans and receivables
Loans and receivables are non-derivative financial assets with fixed or determinable payments that are not quoted in an active market other than those for which the company may not recover substantially all of its initial investment, other than because of credit deterioration, which are classified as available-for-sale. Loans and receivables are initially recognised at fair value plus transaction costs and subsequently carried at amortised cost using the effective interest method, with changes in carrying value recognised in the profit and loss account.
Debtors
Financial assets within debtors are initially recognised at fair value, which is usually the original invoiced amount, and are subsequently carried at amortised cost using the effective interest method less provisions made for doubtful debts. Provisions are made specifically where there is evidence of a risk of non payment, taking into account ageing, previous losses experienced and general economic conditions. Financial liabilities Creditors
Financial liabilities within creditors are initially recognised at fair value, which is usually the original invoiced amount, and subsequently carried at amortised cost using the effective interest method.
Loans and other borrowings
Loans and other borrowings are initially recognised at fair value plus directly attributable transaction costs. Loans and other borrowings are subsequently measured at amortised cost using the effective interest method and, if included in a fair value hedge relationship, are re-valued to reflect the fair value movements on the hedged risk associated with the loans and other borrowings. The resulting amortisation of fair value movements, on dedesignation of the hedge, are recognised in the profit and loss account.
New and amended accounting standards that have been issued but are not yet effective
The following standards have been issued but are not yet effective. The impact of these on the financial statements are being considered by the Company.
[FRS 15 'Revenue from Contracts with Customers' IFRS 9 'Financial instruments' IFRS 16 'Leases' Presentation of specific items

BT Ste Euro Limited 15 Notes to the financial statements
3 Operating (loss)/profit
Operating profit stated after charging: 2016.0
2015.0
Restated
4245.0
Auditors' remuneration for statutory audit
7100.0 4 Finance (expense)/income

Foreign exchange (loss)/gain

5 Directors' emoluments
2016 2015
Restated
(35,083,601) 51,090,195
The directors are employed and remunerated by British Telecommunications plc or other group companies in respect of their services to the BT group as a whole. No emoluments were paid tb the directors in respect of their services to the Company in the year ended 31 March 2016 (2015: fnil).
6 Employee information
The average monthly number of persons employed by the Company during the year was nil (2015: nil).
7 Interest receivable and similar income 2016 2015

Interest receivable from group undertaking 44,418 16,573
8 Interest payable and similar charges

2016 2015 Interest payable to group undertaking (4,519,042) (6,512,168)

BT Sic Euro Limited 16 Notes to the financial statements (continued)
9 Tax on (loss)/profit on ordinary activities Sheet4 The tax assessed for the year is lower (2015: lower) than the standard rate of corporation tax in the UK of 20% (2015: 21%) as explained below:
Sheet5
The rate of UK corporation tax will change from 20% to 19% on 1 April 2017 and to 18% on 1 April 2020. The UK Finance Bill 2016 also includes a reduction of the UK corporation tax rate to 17% on 1 April 2020. This will replace the 18% UK corporation tax rate that is currently legislated to take effect. These rate changes will be applied to the future results of the Company but will have no effect on the current year as the Company has no deferred tax timing differences.
10 Investments

Cost and net book value at 1 April 2015 and 31 March 2016
Associated Undertaking Shares

1334069361.0
Brief details of the associated undertakings were as follows: Company Company Activity Percentage of allocated Number of Shares Country name ordinary share capital owned Tudor United Minstrel Finance Company 23.684% 675,000,000 C Ordinary Shares Kingdom
In the opinion of the directors, the carrying value of the investment is supported by its underlying net assets.
BT Sle Euro Limited 17
Notes to the financial statements (continued)
11 Debtors Sheet6 Amounts owed from group undertakings include an interest bearing (12 month GBP LIBOR plus 42.5 basis points) loan facility of frill (2015: ?2,959,219) to British Telecommunications plc and is receivable on demand. Amounts owed from group undertakings include an interest bearing (EURO 12 month EURTBOR plus 42.5 basis points) loan facility of ?4,555,378 (2015: ?67,730) to British Telecommunications plc and is receivable on demand.
12 Creditors: amounts falling due within one year
Sheet7 Amounts owed to group undertakings include an interest bearing (EURO 12 month EUREBOR plus 102.5 basis points) loan facility of ?399,953,161 (2015: ?360,139,481) from British Telecommunications plc and is repayable on demand.
13 Called up share capital

2016 2015

198,264,929 198,264,929
Allotted, called up and fully paid: 225,110,000 (2015: 225,110,000) ordinary shares of El each BT Sle Euro Limited 18 Notes to the financial statements
14 Contingent liabilities
At 31 March 2016, there are no contingent liabilities or guarantees other than those arising in the ordinary course of the Company's business and on these no material losses are anticipated.
15 Controlling entities
The Company is a wholly owned subsidiary of British Telecommunications plc, which is the immediate controlling entity. The ultimate controlling entity is BT Group plc.
The parent undertaking of the largest group of companies into which the results of the Company are consolidated is BT Group plc, a Company incorporated in England & Wales. Consequently the Company is exempt under the terms of IAS 24 "Related Party Disclosures" from disclosing details of transactions and balances with BT Group plc, fellow group subsidiaries and associated undertakings, and those deemed under BT Group control during the year ended 31 March 2016. Copies of the financial statements of BT Group plc may be obtained from The Secretary, BT Group plc, 81 Newgate Street, London EC 1A 7AJ.
The parent undertaking of the smallest group of companies into which the results of the Company are consolidated is British Telecommunications plc, a Company incorporated in England & Wales. Copies of the financial statements of British Telecommunications plc are available from The

Directors Report 4

Directors' report for the year ended 31 March 2015
The directors submit their report and the audited financial statements of BT Sle Euro Limited (the "Company") for the year ended 31 March 2015. The registered number of the Company is 7573610.
The directors' report has been prepared in accordance with the special provisions relating to small companies within Part 15 of the Companies Act 2006.
Principal activities and future developments
The Company's principal activity is to act as an investment holding company within the British Telecommunications plc group of companies. The directors do not anticipate any change in the Company's principal activity in the foreseeable future.
Principal risks and uncertainties
The directors of BT Group plc (the ultimate controlling entity of the Company) manage the group's risks at a group level, rather than at an individual business unit level. For this reason, the Company's directors believe that a discussion of the group's risks would not be appropriate for an understanding of the development, performance or position of the Company's business. The principal risks and uncertainties of BT Group plc, which include those of the company, are discussed on pages 41 to 52 of the annual report of BT Group plc 2015, which does not form part of this report.
Key performance indicators ("KPIs")
The directors of BT Group plc manage the group's operations on a divisional basis. For this reason, the Company's directors believe that analysis using key performance indicators for the Company is not necessary or appropriate for an understanding of the development, performance or position of the business of the Company.
Results and dividends
The profit on ordinary activities before taxation was ?44,593,547 (2014: ?996,390). The tax credit on profit on ordinary activities was ?1,385,602 (2014: ?1,893,017) which left a profit after taxation for the financial year of ?45,979,149 (2014: ?2,889,407).
The directors do not recommend the payment of a dividend in respect of the year ended 31 March 2015 (2014: ?nil).
BT Sle Euro Limited 4

Directors' report for the year ended 31 March 2015 (continued)
Directors
A list of the current directors is set out on page 2. A Buffa was appointed to the board on 18 May 2015. P N Allenby served as a director until he resigned on 18 May 2015. All remaining directors held office throughout the year and up to the date of signing of this report.
Statement of Directors' Responsibilities
The directors are responsible for preparing the Directors' Report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have prepared the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:
?select suitable accounting policies and then apply them consistently;
?make judgements and accounting estimates that are reasonable and prudent;
?state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
?prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities.
BT Ste Euro Limited 5 Directors' report for the year ended 31 March 2015 (continued)
Disclosure of information to the auditors
So far as each of the directors is aware, there is no relevant information that has not been disclosed to the Company's auditors and each of the directors believes that all steps have been taken that ought to have been taken to make them aware of any relevant audit information and to establish that the Company's auditors have been made aware of that information.

The directors' report on pages 3 to 5 was approved by the Board of directors on 30 October 2015 and was signed on its behalf by Christina Ryan.

Authorised Signatory for and on behalf of Newgate Street Secretaries Limited Company Secretary 2015-10-30 00:00:00
BT Sle Euro Limited 6
Independent auditors' report to the members of BT Sle Euro Limited
Report on the financial statements
Our opinion
In our opinion, BT Sle Euro Limited's financial statements (the "financial statements"):
?give a true and fair view of the state of the company's affairs as at 31 March 2015 and of its profit for the year then ended; ?have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and ?have been prepared in accordance with the requirements of the Companies Act 2006.
What we have audited
The financial statements comprise:
?the balance sheet as at 31 March 2015; ?the profit and loss account for the year then ended; ?the accounting policies; and ?the notes to the financial statements, which include other explanatory information.
The financial reporting framework that has been applied in the preparation of the financial statements is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
In applying the financial reporting framework, the directors have made a number of subjective judgements, for example in respect of significant accounting estimates. In making such estimates, they have made assumptions and considered future events.
Opinion on other matter prescribed by the Companies Act 2006
In our opinion, the information given in the Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements.
Other matters on which we are required to report by exception
Adequacy of accounting records and information and explanations received
Under the Companies Act 2006 we are required to report to you if, in our opinion:
?we have not received all the information and explanations we require for our audit; or
BT Sle Euro Limited 7 Independent auditors' report to the members of BT Ste Euro Limited (continued)
?adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or ?the financial statements are not in agreement with the accounting records and returns. We have no exceptions to report arising from this responsibility. Directors' remuneration
Under the Companies Act 2006 we are required to report to you if, in our opinion, certain disclosures of directors' remuneration specified by law are not made. We have no exceptions to report arising from this responsibility.
Entitlement to exemptions
Under the Companies Act 2006 we are required to report to you if, in our opinion, the directors were not entitled to: prepare financial statements in accordance with the small companies regime; and take advantage of the small companies exemption from preparing a strategic report. We have no exceptions to report arising from this responsibility. Responsibilities for the financial statements and the audit Our responsibilities and those of the directors
As explained more fully in the Statement of directors responsibilities set out on page 4, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view.
Our responsibility is to audit and express an opinion on the financial statements in accordance with applicable law and International Standards on Auditing (UK and Ireland) ("ISAs (UK & Ireland)"). Those standards require us to comply with the Auditing Practices Board's Ethical Standards for Auditors.
This report, including the opinions, has been prepared for and only for the company's members as a body in accordance with Chapter 3 of Part 16 of the Companies Act 2006 and for no other purpose. We do not, in giving these opinions, accept or assume responsibility for any other purpose or to any other person to whom this report is shown or into whose hands it may come save where expressly agreed by our prior consent in writing.
BT Ste Euro Limited 8 Independent auditors' report to the members of BT Ste Euro Limited

What an audit of financial statements involves
We conducted our audit in accordance with ISAs & Ireland). An audit involves obtaining evidence about the amounts and disclosures in the financial statements sufficient to
whether caused by fraud or error. This includes an assessment of:
?whether the accounting policies are appropriate to the company's circumstances and
?the reasonableness of significant accounting estimates made by the directors; and ?the overall presentation of the financial statements.
We primarily focus our work in these areas by assessing the directors' judgements against
financial statements.
We test and examine information, using sampling and other auditing techniques, to the extent
audit evidence through testing the effectiveness of controls, substantive procedures or a combination of both.
In addition, we read all the financial and non-financial information in the Directors' Report
statements and to identify any information that is apparently materially incorrect based on, or materially inconsistent with, the knowledge acquired by us in the course of performing the audit. If we become aware of any apparent material misstatements or inconsistencies we consider the implications for our report.

Sharron Moran (Senior Statutory Auditor) for and on behalf of PricewaterhouseCoopers LLP Chartered Accountants and Statutory Auditors Glasgow -a N avr?Mbez-201 5 Sheet1
All results derive from continuing operations.
There have been no recognised gains or losses during either 2015 or 2014 other than as disclosed in the profit and loss account and therefore no separate statement of total recognised gains and losses has been presented.
There were no material differences between the results as disclosed above and the results on an unmodified historical cost basis. Sheet2
The financial statements on pages 9 to 16 were approved and authorised for issue by the Board of directors on 30 October 2015 and were signed on its behalf by Alberto Buffa.

aNelerho i;u41-?` Alberto Buffa Director

BT Sle Euro Limited 11 Accounting policies
Basis of accounting
These financial statements are prepared on the going concern basis, under the historical cost convention and in accordance with the Companies Act 2006 and applicable accounting standards in the United Kingdom. The principal accounting policies, which have been consistently applied, are set out below.
The financial statements present information about the Company as an individual undertaking, and not about its group. The Company is exempt by virtue of s400 of the Companies Act 2006 from the requirement to prepare and deliver group accounts as the financial statements of BT SLE Euro Limited are consolidated in the financial statements of BT Group plc, the ultimate parent entity.
The preparation of financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of income and expenditure during the reporting period. Actual results could differ from those estimates. Estimates are used principally when accounting for investment impairment, provisions for liabilities and charges and taxes.
Investments
Investments are carried at cost less provision for impairment. Investments are tested for impairment by the directors when an event that might affect asset values has occurred. An impairment loss is recognised to the extent that the carrying amount cannot be recovered either by selling the asset or by the discounted future cash flows from the investment.
Taxation
The charge for taxation is based on the profit for the period and takes into account deferred tax.
Current tax assets and liabilities are measured at the amount expected to be recovered from or paid to the taxation authorities, based on tax rates and laws that are enacted or substantively enacted by the balance sheet date.
Cash flow statement and related party disclosures
The Company is a wholly-owned subsidiary of BT Group plc. The cash flows of the Company are included in the consolidated cash flow statement of BT Group plc, whose annual report is publicly available. Consequently the Company is exempt under the terms of FRS 1 (Revised 1996) "Cash Flow Statements" from publishing a cash flow statement. "
The company is also exempt under the terms of FRS 8 from disclosing related party transactions with entities that are part of the BT Group plc.
BT Sle Euro Limited 12

Accounting policies (continued)
Foreign currencies
Trading transactions denominated in foreign currencies are translated into sterling at the exchange rate ruling when the transaction was entered into. Monetary assets and liabilities denominated in foreign currencies are translated into sterling at the exchange rate ruling at the balance sheet date. Exchange gains or losses are dealt with through the profit and loss account.
Accounting standards, interpretations and amendments not yet effective
Following the publication of FRS 100 'Application of Financial Reporting Requirements' by the Financial Reporting Council, BT Sle Euro Limited is required to change its accounting framework for its entity financial statements, which is currently UK GAAP, for its financial year commencing 1 April 2015. The purpose of FRS 100 is to align reporting in the UK with lFRS. As a qualifying subsidiary, the company will adopt FRS 101 'Reduced Disclosure Framework'.
As required by FRS 101, the company notified its shareholders of the proposed change.
BT Ste Euro Limited
Notes to the financial statements
1 Operating profit
Operating profit stated after charging: Sheet3 2 Directors' emoluments
The directors are employed and remunerated by British Telecommunications plc or other group companies in respect of their services to the BT group as a whole. No emoluments were paid to the directors in respect of their services to the Company in the year ended 31 March 2015 (2014: bill).
3 Employee information
The average monthly number of persons employed by the Company during the year was nil (2014: nil).
4 Interest receivable and similar income Sheet4 The tax assessed for the year is lower (2014: lower) than the standard rate of corporation tax in the UK of 21% (2014: 23%) as explained below: BT Sle Euro Limited 14
Notes to the financial statements (continued)
6. Tax on profit on ordinary activities (continued) Sheet5 7 Fixed Asset Investment Associated
Shares

Cost and net book value at 1 April 2014 and 31 March 2015 1,334,069,361
Brief details of the associated undertakings were as follows:

Company name Company Activity Percentage of allocated Number of Shares Country ordinary share capital owned Tudor Minstrel Finance Company 30% 675,000,000 C Ordinary Shares United Kingdom

In the opinion of the directors, the carrying value of the investment is supported by its underlying net assets.

BT Sle Euro Limited 15
Notes to the financial statements (continued)
8 Debtors Sheet6 Amounts owed from group undertakings include an interest bearing (12 month GBP LIBOR plus 42.5 basis points) loan facility of ?2,959,219 (2014: ?1,072,834) to British Telecommunications plc and is receivable within 12 months. Amounts owed from group undertakings include an interest bearing (EURO 12 month EURIBOR plus 42.5 basis points) loan facility of ?67,730 (2014: ?81,211) to British Telecommunications plc and is receivable within 12 months.
9 Creditors: amounts falling due within one year
Sheet7 Amounts owed to group undertakings include an interest bearing (EURO 12 month EURD3OR plus 102.5 basis points) loan facility of ?360,139,481 (2014: ?403,523,181) from British Telecommunications plc and is repayable within 12 months.
10 Called up share capital
2015 2014
Allotted, called up and fully paid: 225,110,000 (2014: 225,110,000) ordinary shares of El each
198,264,929 198,264,929 BT Ste Euro Limited 16 Notes to the financial statements
11 Reserves Share Profit and Premium loss Account account
Sheet8 13 Contingent liabilities
At 31 March 2015, there are no contingent liabilities or guarantees other than those arising in the ordinary course of the Company's business and on these no material losses are anticipated.
14 Controlling entities
The Company is a wholly-owned subsidiary of British Telecommunications plc which is the immediate controlling entity. The ultimate controlling entity as at 31 March 2015 was BT Group plc. The parent undertaking of the largest group of companies into which the results of the Company are consolidated is BT Group plc, a company incorporated in England & Wales. Consequently the Company is exempt under the terms of FRS 8 "Related Party Disclosures" from disclosing details of transactions and balances with BT Group plc, fellow group subsidiaries and associated undertakings, and those deemed under control during the year ended 31 March 2015. Copies of the financial statements of BT Group plc may be obtained from The Secretary, BT Group plc, 81 Newgate Street, London EC 1A 7AJ.
The parent undertaking of the smallest group of companies into which the results of the Company are consolidated is British Telecommunications plc, a company incorporated in England & Wales. Copies of the financial statements of British Telecommunications plc are available from The

Directors Report 5

Directors' report for the year ended 31 March 2014
The directors submit their report and the audited financial statements of BT Sle Euro Limited (the "Company") for the year ended 31 March 2014. The registered number of the Company is 7573610.
The directors' report has been prepared in accordance with the special provisions relating to small companies within Part 15 of the Companies Act 2006.
Principal activities and future developments
The Company's principal activity is to act as an investment holding company within the British Telecommunications plc group of companies. The directors do not anticipate any change in the Company's principal activity in the foreseeable future.
Principal risks and uncertainties
The directors of BT Group plc (the ultimate controlling entity of the Company) manage the group's risks at a group level, rather than at an individual business unit level. For this reason, the Company's directors believe that a discussion of the group's risks would not be appropriate for an understanding of the development, performance or position of the Company's business. The principal risks and uncertainties of BT Group plc, which include those of the company, are discussed on pages 50 to 55 of the 2013 annual report of BT Group plc, which does not form part of this report.
Key performance indicators ("KPIs")
The directors of BT Group plc manage the group's operations on a divisional basis. For this reason, the Company's directors believe that analysis using key performance indicators for the Company is not necessary or appropriate for an understanding of the development, performance or position of the business of the Company.
Results and dividends
The profit on ordinary activities before taxation was ?996,390 (2013: loss of ?17,424,118). The tax credit of on the profit/(loss) on ordinary activities was ?1,893,017 (2013: ?2,653,278) which left a profit after taxation for the year of ?2,889,407 (2013: loss of ?14,770,840).
The directors do not recommend the payment of a dividend in respect of the year ended 31 March 2014 (2013: ?ni1).
BT Sle Euro Limited 4 Directors' report for the year ended 31 March 2014 (continued)
Directors
A list of the current directors is set out on page 2. All directors held the office throughout the year and up to the date of signing of this report.
Statement of Directors' Responsibilities
The directors are responsible for preparing the Directors' Report and the financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare financial statements for each financial year. Under that law the directors have prepared the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period. In preparing these financial statements, the directors are required to:
?select suitable accounting policies and then apply them consistently;
?make judgements and accounting estimates that are reasonable and prudent;
?state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements;
?prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities
BT Ste Euro Limited 5 Directors' report for the year ended 31 March 2014 (continued)
Disclosure of information to the auditors
So far as each of the directors is aware, there is no relevant information that has not been disclosed to the Company's auditors and each of the directors believes that all steps have been taken that ought to have been taken to make them aware of any relevant audit information and to establish that the Company's auditors have been made aware of that information.

The directors' report on pages 3 to 5 were approved by the Board of directors on (5 December 2014 and were signed on its behalf by

Authorised Signatory for and on behalf of Newgate Street Secretaries Limited Company Secretary lei December 2014
BT Ste Euro Limited 6
Independent auditors' report to the members of BT Ste Euro Limited
Report on the financial statements Our Opinion In our opinion the financial statements, defined below:
?give a true and fair view of the state of the company's affairs as at 31 March 2014 and of its profit for the year then ended; ?have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and ?have been prepared in accordance with the requirements of the Companies Act 2006. This opinion is to be read in The context of what we say in the remainder of this report.
What we have audited
The financial statements, which are prepared by BT Sle Euro Limited, comprise:
?Balance Sheet as at 31 March 2014; ?Profit and loss account for the year then ended; ?Accounting policies; and ?Notes to the financial statements and other explanatory information.

The financial reporting framework that has been applied,in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice).
In applying the financial reporting framework, the directors have made a number of subjective judgements, for example in respect of significant accounting estimates. In making such estimates, they have made assumptions and considered future events.
What an audit of financial statements involves
We conducted our audit in accordance with International Standards on Auditing (UK and Ireland) ("ISAs (UK & Ireland)"). An audit involves obtaining evidence about the amounts and disclosures in the financial statements sufficient to give reasonable assurance that the financial statements are free from material misstatement, whether caused by fraud or error. This includes an assessment of:
?whether the accounting policies are appropriate to the company's circumstances
?the reasonableness of significant accounting estimates made by the directors; and ?the overall presentation of the financial statements. BT Sle Euro Limited 7

Independent auditors' report to the members of BT Sle Euro Limited
In addition, we read all the financial and non-financial information in the Directors' Report and Financial Statements (the "Annual Report") to identify material inconsistencies with the audited financial statements and to identify any information that is apparently materially incorrect based on, or materially inconsistent with, the knowledge acquired by us in the course of performing the audit. If we become aware of any apparent material misstatements or inconsistencies we consider the implications for our report.
Opinion on other matters prescribed by the Companies Act 2006
In our opinion the information given in the Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements. Other matters on which we are required to report by exception Adequacy of accounting records and information and explanations received
Under the Companies Act 2006 we are required to report to you if, in our opinion:
?we have not received all the information and explanations we require for our
?adequate accounting records have not been kept, or returns adequate for our audit
?the financial statements are not in agreement with the accounting records and
We have no exceptions to report arising from this responsibility. Directors' remuneration
Under the Companies Act 2006 we are required to report to you if, in our opinion, certain disclosures of directors' remuneration specified by law are not made. We have no exceptions to report arising from this responsibility.
Entitlement to exemptions
Under the Companies Act 2006 we are required to report to you if, in our opinion, the directors were not entitled to: take advantage of the small companies exemption in preparing the Directors' Report; and take advantage of the small companies exemption from preparing a strategic report. We have no exceptions to report arising from this responsibility.
BT Ste Euro Limited 8

Independent auditors' report to the members of BT Ste Euro Limited Responsibilities for the financial statements and the audit Our responsibilities and those of the directors
As explained more fully in the Statement of Directors' Responsibilities set out on page 4, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view.
Our responsibility is to audit and express an opinion on the financial statements in accordance with applicable law and ISAs (UK & Ireland). Those standards require us to comply with the Auditing Practices Board's Ethical Standards for Auditors.
This report, including the opinions, has been prepared for and only for the company's members as a body in accordance with Chapter 3 of Part 16 of the Companies Act 2006 and for no other purpose. We do not, in giving these opinions, accept or assume responsibility for any other purpose or to any other person to whom this report is shown or into whose hands it may come save where expressly agreed by our prior consent in writing.

Sharron Moran (Senior Statutory Auditor) For and on behalf of PricewaterhouseCoopers LLP Chartered Accountants and Statutory Auditors Glasgow 2:L December 2014 Sheet1 All results derive from continuing operations.
There have been no recognised gains or losses during either 2014 or 2013 other than as disclosed in the profit and loss account and therefore no separate statement of total recognised gains and losses has been presented.
There were no material differences between the results as disclosed above and the results on an unmodified historical cost basis. Sheet2
The financial statements on pages 9 to 15 were approved and authorised for issue by the Board of directors on CI December 2014 and were signed on its behalf by

Mark Genikis Director
BT Sle Euro Limited 11 Accounting policies Basis of accounting
These financial statements are prepared on the going concern basis, under the historical cost convention and in accordance with the Companies Act 2006 and applicable accounting standards in the United Kingdom. The principal accounting policies, which have been consistently applied, are set out below.
The financial statements present information about the Company as an individual undertaking, and not about its group. The Company is exempt by virtue of s400 of the Companies Act 2006 from the requirement to prepare and deliver group accounts as the financial statements of BT SLE Euro Limited are consolidated in the financial statements of BT Group plc, the ultimate parent entity.
The preparation of financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of income and expenditure during the reporting period. Actual results could differ from those estimates. Estimates are used principally when accounting for investment impairment, provisions for liabilities and charges and taxes.
Investments
Investments are carried at cost less provision for impairment. Investments are tested for impairment by the directors when an event that might affect asset values has occurred. An impairment loss is recognised to the extent that the carrying amount cannot be recovered either by selling the asset or by the discounted future cash flows from the investment.
Taxation
The charge for taxation is based on the profit for the period and takes into account deferred tax.
Cash flow statement
The Company is a wholly-owned subsidiary of BT Group plc. The cash flows of the Company are included in the consolidated cash flow statement of BT Group plc, whose annual report is publicly available. Consequently the Company is exempt under the terms of FRS 1 (Revised 1996) "Cash Flow Statements" from publishing a cash flow statement.
Foreign currencies
Trading transactions denominated in foreign currencies are translated into sterling at the exchange rate ruling when the transaction was entered into. Monetary assets and liabilities denominated in foreign currencies are translated into sterling at the exchange rate ruling at the balance sheet date. Exchange gains or losses are dealt with through the profit and loss account.
BT Ste Euro Limited 12
Notes to the financial statements
1 Operating profit/(loss)
Operating profit/(loss) is stated after charging: 2014 2013

Auditors' remuneration for statutory audit Foreign exchange (gain)/loss 4,142 4,017 (9,180,783) 6,368,793
2 Directors' emoluments The directors are employed and remunerated by British Telecommunications plc or other group companies in respect of their services to the BT group as a whole. No emoluments were paid to the directors in respect of their services to the Company in the year ended 31 March 2014 (2013: frill).
3 Employee information
The average monthly number of persons employed by the Company during the year was bill (2013: frill).
4 Interest receivable and similar income 2014 2013

Interest receivable from grOup undertaking 1,142 7,509
5 Interest payable and similar charges

2014 2013 Interest payable to group undertaking (8,180,558) (11,058,817) BT Sle Euro Limited 13 Notes to the financial statements
6 Tax on profit/(loss) on ordinary activities Sheet3 7 Fixed Asset Investment

Cost and net book value at 1 April 2013 and 31 March 2014
Associated Undertaking Shares

1334069361.0
Brief details of principal associated undertakings were as follows: Name Activity Holding Country of Percentage incorporation (and operations) Tudor Minstrel Investment Holding 30% England and Wales Company
In the opinion of the directors, the carrying value of the investment is supported by its underlying net assets.
BT Sic Euro Limited 14 Notes to the financial statements
8 Debtors Sheet4 Amounts owed from group undertakings include an interest bearing (12 month GBP LIBOR plus 85 basis points) loan facility of ?1,072,834 (2013: ?nil) to British Telecommunications plc and is receivable within 12 months. Amounts owed from group undertakings include an interest bearing (EURO 12 month EURIBOR plus 85 basis points) loan facility of ?81,211 (2013: ?86,626) to British Telecommunications plc and is receivable within 12 months.
9 Creditors: amounts falling due within one year
Sheet5 Amounts owed to group undertakings include an interest bearing (EURO 12 month EURIBOR plus 145 basis points) loan facility of ?403,523,181 (2013: ?405,980,771) from British Telecommunications plc and is repayable within 12 months.
10 Called up share capital
2014 2013
Allotted, called up and fully paid: 225,110,000 (2013: 225,110,000) ordinary shares of El each
198,264,929 198,264,929
11 Reserves Share Profit and Premium loss Account account

Balance at 1 April 2013 739,565,222 (10,135,951)
Profit for the financial year 2,889,407
Balance at 31 March 2014 739,565,222 (7,246,544)
BT Ste Euro Limited 15 Notes to the financial statements
12 Reconciliation of movements in shareholders' funds Sheet6 13 Contingent liabilities
At 31 March 2014, there are no contingent liabilities or guarantees other than those arising in the ordinary course of the Company's business and on these no material losses are anticipated.
14 Controlling entities
The Company is a wholly-owned subsidiary of British Telecommunications plc which is the immediate controlling entity. The ultimate controlling entity as at 31 March 2014 was BT Group plc. The parent undertaking of the largest group of companies into which the results of the Company are consolidated is BT Group plc, a company incorporated in England & Wales. Consequently the Company is exempt under the terms of FRS 8 "Related Party Disclosures" from disclosing details of transactions and balances with BT Group plc, fellow group subsidiaries and associated undertakings, and those deemed under control during the year ended 31 March 2014. Copies of the financial statements of BT Group plc may be obtained from The Secretary, BT Group plc, 81 Newgate Street, London EC 1 A 7AJ.
The parent undertaking of the smallest group of companies into which the results of the Company are consolidated is British Telecommunications plc, a company incorporated in England & Wales. Copies of the financial statements of British Telecommunications plc are available from The

Directors Report 6

Directors' report for the year ended 31 March 2013
The directors submit their report and the audited financial statements of BT Sle Euro Limited (the "Company") for the year ended 31 March 2013 The registered number, of the Company is 7573610.0
The directors' report has been prepared in accordance with the special provisions relating to small companies within Part 15 of the Companies Act 2006.
Principal activities and future developments
The Company's principal activity is to act as an investment holding company within the British Telecommunications plc ("BT") group of companies The directors do not anticipate any change in the Company's principal activity in the foreseeable future
Principal risks and uncertainties
The directors of BT Group plc (the ultimate controlling entity of the Company) manage the group's risks at a group level, rather than at an individual business unit level For this reason, the Company's directors believe that a discussion of the group's risks would not be appropriate for an understanding of the development, performance or position of the Company's business The principal risks and uncertainties of BT Group plc, which include those of the company, are discussed on pages 24 to 27 of the 2013 annual report of BT Group plc which does not form part of this report.
Key performance indicators ("KPIs")
The directors of BT Group plc manage the group's operations on a divisional basis For this reason, the Company's directors believe that analysis using key performance indicators for the Company is not necessary or appropriate for an understanding of the development, performance or position of the business of the Company
Results and dividends
The loss on ordinary activities before taxation was ?17,424,118 (2012 profit of ?8,354,174). The tax credit on the loss on ordinary activities was ?2,653,278 (2012 charge of ?2,172,085) which left a loss after taxation for the year of ?14,770,840 (2012 profit of ?6,182,089)
The directors do not recommend the payment of a dividend in respect of the year ended 31 March 2013 (2012' ?nil).
BT Ste Euro Limited 4 Directors' report for the year ended 31 March 2013 (continued)
Directors
A list of the current directors is set out on page 1 All directors held the office throughout the year and up to the date of signing of this report
Statement of Directors' Responsibilities
The directors are responsible for preparing the Directors' Report and the financial statements in accordance with applicable law and regulations
Company law requires the directors to prepare financial statements for each financial year Under that law the directors have prepared the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period In prepanng these financial statements, the directors are required to.
?select suitable accounting policies and then apply them consistently,
?make judgements and accounting estimates that are reasonable and prudent,
?state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
?prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business,
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006 They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities
BT Sle Euro Limited 5 Directors' report for the year ended 31 March 2013 (continued)
Disclosure of information to the auditors
So far as each of the directors is aware, there is no relevant information that has not been disclosed to the Company's auditors and each of the directors believes that all steps have been taken that ought to have been taken to make them aware of any relevant audit information and to establish that the Company's auditors have been made aware of that information

By order of the Board,

Michael Cole Authorised Signatory for and on behalf of Newgate Street Secretaries Limited Company Secretary 2013-12-06 00:00:00

BT Sle Euro Limited 6 Independent auditor's report to the members of BT Sle Euro Limited
We have audited the financial statements of BT Sle Euro Limited for the year ended 31 March 2013, which comprise the Profit and Loss Account, the Balance Sheet, the Accounting Policies and the related notes The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice)
Respective responsibilities of directors and auditors
As explained more fully in the Directors' Responsibilities Statement set out on page 4, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view. Our responsibility is to audit and express an opinion on the financial statements in accordance with applicable law and International Standards on Auditing (UK and Ireland) Those standards require us to comply with the Auditing Practices Board's Ethical Standards for Auditors.
This report, including the opinions, has been prepared for and only for the company's members as a body in accordance with Chapter 3 of Part 16 of the Companies Act 2006 and for no other purpose We do not, in giving these opinions, accept or assume responsibility for any other purpose or to any other person to whom this report is shown or into whose hands it may come save where expressly agreed by our prior consent in writing.
Scope of the audit of the financial statements
An audit involves obtaining evidence about the amounts and disclosures m the financial statements sufficient to give reasonable assurance that the financial statements are free from material misstatement, whether caused by fraud or error This includes an assessment of whether the accounting policies are appropriate to the company's circumstances and have been consistently applied and adequately disclosed, the reasonableness of significant accounting estimates made by the directors, and the overall presentation of the financial statements In addition, we read all the financial and non-financial information in the director's report and financial statements for the year ended 31 March 2013 to identify material inconsistencies with the audited financial statements If we become aware of any apparent material misstatements or inconsistencies we consider the implications for our report.
Opinion on financial statements
In our opinion the financial statements
?give a true and fair view of the state of the company's affairs as at 31 March 2013 and of its loss for the year then ended,
?have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice; and
?have been prepared in accordance with the Companies Act 2006.
BT Sle Euro Limited 7
Independent auditor's report to the members of BT Sle Euro Limited (continued)
Opinion on other matter prescribed by the Companies Act 2006
In our opinion the information given in the Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements.
Matters on which we are required to report by exception
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion.
?adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us; or
?the financial statements are not in agreement with the accounting records and returns, or
?certain disclosures of directors' remuneration specified by law are not made, or
?we have not received all the information and explanations we require for our audit

NA___Co-i Martin Cowie (Senior Statutory Auditor) For and on behalf of PncewaterhouseCoopers LLP Chartered Accountants and Statutory Auditors Edinburgh 2013-12-06 00:00:00 Sheet1
All results derive from continuing operations
There have been no recognised gains or losses during either 2013 or 2012 other than as disclosed in the profit and loss account and therefore no separate statement of total recognised gains and losses has been presented
There were no material differences between the results as disclosed above and the results on an unmodified historical cost basis The financial statements on pages 7 to 15 were approved by the Board of directors on 6 December 2013 and were signed on its behalf by Sheet2

Mark Genikis Director

BT Sle Euro Limited io Accounting policies
Basis of accounting
These financial statements are prepared on the going concern basis, under the historical cost convention and in accordance with the Companies Act 2006 and applicable accounting standards in the United Kingdom. The principal accounting policies, which have been consistently applied, are set out below
The preparation of financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of income and expenditure during the reporting period Actual results could differ from those estimates. Estimates are used principally when accounting for Investment impairment, provisions for liabilities and charges and taxes
Investments
Investments are carried at cost less provision for impairment. Investments are tested for impairment by the directors when an event that might affect asset values has occurred. An impairment loss is recognised to the extent that the carrying amount cannot be recovered either by selling the asset or by the discounted future cash flows from the investment.
Taxation
The charge for taxation is based on the profit for the period and takes into account deferred tax
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date, where transactions or events that result in an obligation to pay more tax in the future or a right to pay less tax in the future have occurred at the balance sheet date
A net deferred tax asset is recognised as recoverable and therefore recognised only when, on the basis of all available evidence, it can be regarded as more likely than not that there will be suitable taxable profits against which to recover carried forward tax losses and from which the future reversal of underlying timing differences can be deducted
Deferred tax is measured at the average tax rates that are expected to apply in the periods in which the timing differences are expected to reverse based on tax rates and laws that have been enacted or substantively enacted by the balance sheet date. Deferred tax is measured on an undiscounted basis
BT Sic Euro Limited 1 1 Accounting policies (continued)
Cash flow statement
The Company is a wholly-owned subsidiary of BT Group plc. The cash flows of the Company are included in the consolidated cash flow statement of BT Group plc, whose annual report is publicly available Consequently the Company is exempt under the terms of FRS 1 (Revised 1996) "Cash Flow Statements" from publishing a cash flow statement.
Share capital
Ordinary shares are classified as equity Incremental costs directly attributable to the issue of new shares are shown in equity as a deduction, net of tax, from the proceeds
Foreign currencies
Trading transactions denominated in foreign currencies are translated into sterling at the exchange rate ruling when the transaction was entered into Monetary assets and liabilities denominated in foreign currencies are translated into sterling at the exchange rate ruling at the balance sheet date Exchange gains or losses are dealt with through the profit and loss account.
BT Ste Euro Limited 12
Notes to the financial statements
1 Operating (loss)/profit
Operating loss is stated after charging Sheet3 2 Directors' emoluments
The directors are employed and remunerated by British Telecommunications plc or other group companies in respect of their services to the BT group as a whole No emoluments were paid to the directors in respect of their services to the Company in the year ended 31 March 2013 (2012 End)

3 Employee information
The average monthly number of persons employed by the Company during the year was End (2012 ail)
4 Net interest payable Sheet4 BT Ste Euro Limited 13 Notes to the financial statements
5 Tax on loss on ordinary activities
2013 2012

Current tax: UK corporation tax at 24% (31 March 2012 26%)
2,653,278 (2.172,085)
Total current tax credit /(charge)
2,653,278 (2,172,085)
The tax assessed for the year is same as (2012. the same as) standard rate of corporation tax in the UK
2013.0
-17424118.0 2012.0 (Loss)/ profit on ordinary activities before taxation 8354174.0 (Loss)/ profit on ordinary activities multiplied by standard rate of corporation tax at 24% (2012 26%) 4,181,788 (2,172,085)

Foreign exchange loss not deductible for tax purposes (1,528,510)
Current tax credit /(charge)

6 Fixed Asset Investment

Cost and net book value at 1 April 2012 and 31 March 2013 2,653,278 (2,172,085)

Associated
Shares

1334069361.0
Brief details of principal associated undertakings were as follows
Name Activity Country of incorporation
Tudor Minstrel Investment Holding England and Wales Company
In the opinion of the directors, the carrying value of the investment is supported by its underlying net assets
BT Sle Euro Limited 14 Notes to the financial statements
7 Debtors Sheet5 Amounts owed from group undertakings include an interest bearing (EUR 12 month EURIBOR plus 85 basis points) loan facility of ?86,626 (2012. ?693,112) from British Telecommunications plc and is receivable within 12 months.
8 Creditors: amounts falling due within one year
Sheet6 Amounts owed to group undertakings include an interest bearing (EUR 12 month EURIBOR plus 145 basis points) loan facility of ?405,980,771 (2012 ?384,997,291) from British Telecommunications plc and is repayable within 12 months
9 Called up share capital

Allotted, called up and fully paid 225,110,000 (2012 225,110,000) ordinary shares of CI each 2013 2012
1 ?
198,264,929 198,264,929 10 Reserves
Share Profit and Premium loss Account account ? ?
Balance at 1 April 2012 739,565,222 4,634,889
Loss for the financial year (14,770,840)
Balance at 31 March 2013 739,565,222 (10,135,951)
BT Ste Euro Limited 15 Notes to the financial statements
11 Reconciliation of movements in shareholders' funds Sheet7 12 Contingent liabilities
At 31 March 2013, there are no contingent liabilities or guarantees other than those arising in the ordinary course of the Company's business and on these no material losses are anticipated
13 Controlling entities
The Company is a wholly- owned subsidiary of British Telecommunications plc which is the immediate controlling entity. The ultimate controlling entity as at 31 March 2013 was BT Group plc The parent undertaking of the largest group of companies into which the results of the Company are consolidated is BT Group plc, a company incorporated in England & Wales Consequently the
Company is exempt under the terms of FRS 8 "Related Party Disclosures" from disclosing details of transactions and balances with BT Group plc, fellow group subsidiaries and associated undertakings, and those deemed under control during the year ended 31 March 2013 Copies of the financial statements of BT Group plc may be obtained from The Assistant Secretary, BT Group plc, 81 Newgate Street, London EC1A 7AJ
The parent undertaking of the smallest group of companies into which the results of the Company are consolidated is British Telecommunications plc, a company incorporated in England & Wales. Copies of the financial statements of British Telecommunications plc are available from The

Directors Report 7

Directors' report for the year ended 31 March 2012
The directors submit their report and the audited financial statements of BT Ste Euro Limited (the "Company") for the year ended 31 March 2012 The registered number of the Company is 7573610
The directors' report has been prepared in accordance with the special provisions relating to small companies within Part 15 of the Companies Act 2006
Principal activities and future developments
The Company's principal activity is to act as an investment holding company within the British Telecommunications plc group of companies The directors do not anticipate any change in the Company's principal activity in the foreseeable future
Principal risks and uncertainties
The directors of BT Group plc (the ultimate controlling entity of the Company) manage the group's risks at a group level, rather than at an individual business unit level For this reason, the Company's directors believe that a discussion of the group's risks would not be appropriate for an understanding of the development, performance or position of the Company's business The principal risks and uncertainties of BT Group plc, which include those of the company, are discussed on pages 32 to 37 of the group's annual report, which does not form part of this report
Key performance indicators ("ICPIs")
The directors of BT Group plc manage the group's operations on a divisional basis For this reason, the Company's directors believe that analysis using key performance indicators for the Company is not necessary or appropriate for an understanding of the development, performance or position of the business of the Company
Results and dividends
The profit on ordinary activities before taxation was ?8,354,174 (2011 loss of ?2,148,888) The tax on profit on ordinary activities was ?2,172,085 (2011 credit of ?601,688 on its loss) which left a profit after taxation for the year of ?6,182,089 (2011 loss of ?1,547,200)
The directors do not recommend the payment of a dividend in respect of the year ended 31 March 2012 (2011 fnil)
BT Sle Euro Limited 3

Directors' report for the year ended 31 March 2012 (continued)
Directors
A list of the current directors is set out on page I C Maurice served as a director until he resigned on 1 December 2011 The remaining directors held office throughout the year and up to the date of signing of this report
Disclosure of information to the auditors
So far as each of the directors is aware, there is no relevant information that has not been disclosed to the Company's auditors and each of the directors believes that all steps have been taken that ought to have been taken to make them aware of any relevant audit information and to establish that the Company's auditors have been made aware of that information

By order of the Board,

Authorised Signatory for and on behalf of Newgate Street Secretaries Limited Company Secretary
2012-12-04 00:00:00
BT Ste Euro Limited 4.0 Statement of Directors' Responsibilities
The directors are responsible for preparing the Directors' Report and the financial statements in accordance with applicable law and regulations
Company law requires the directors to prepare financial statements for each financial year Under that law the directors have prepared the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law) Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that period In preparing these financial statements, the directors are required to
?select suitable accounting policies and then apply them consistently,
?make judgements and accounting estimates that are reasonable and prudent,
?state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements,
?prepare the financial statements on the going concern basis unless it is inappropriate to presume that the company will continue in business
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006 They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregularities
BT Sle Euro Limited 5 Independent auditor's report to the members of BT Sle Euro Limited
We have audited the financial statements of BT Sle Euro Limited for the year ended 31 March 2012, which comprise the Profit and Loss Account, the Balance Sheet, the Accounting Policies and the related notes The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice)
Respective responsibilities of directors and auditors
As explained more fully in the Statement of Directors' Responsibilities set out on page 4, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view Our responsibility is to audit and express an opinion on the financial statements in accordance with applicable law and International Standards on Auditing (UK and Ireland) Those standards require us to comply with the Auditing Practices Board's Ethical Standards for Auditors
This report, including the opinions, has been prepared for and only for the company's members as a body in accordance with Chapter 3 of Part 16 of the Companies Act 2006 and for no other purpose We do not, in giving these opinions, accept or assume responsibility for any other purpose or to any other person to whom this report is shown or Into whose hands it may come save where expressly agreed by our prior consent in writing
Scope of the audit of the financial statements
An audit involves obtaining evidence about the amounts and disclosures in the financial statements sufficient to give reasonable assurance that the financial statements are free from material misstatement, whether caused by fraud or error This includes an assessment of whether the accounting policies are appropriate to the company's circumstances and have been consistently applied and adequately disclosed, the reasonableness of significant accounting estimates made by the directors, and the overall presentation of the financial statements In addition, we read all the financial and non-financial information in the directors report and financial statements to identify material inconsistencies with the audited financial statements If we become aware of any apparent material misstatements or inconsistencies we consider the implications for our report
Opinion on financial statements
In our opinion the financial statements
?give a true and fair view of the state of the company's affairs as at 31 March 2012 and of its profit for the jrear then ended,
?have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice, and
?have been prepared in accordance with the Companies Act 2006
BT Sle Euro Limited 6
Independent auditor's report to the members of BT Sle Euro Limited (continued)
Opinion on other matter prescribed by the Companies Act 2006
In our opinion the information given in the Directors' Report for the financial year for which the financial statements are prepared is consistent with the financial statements
Matters on which we are required to report by exception
We have nothing to report in respect of the following Matters where the Companies Act 2006 requires us to report to you if, in our opinion
?adequate accounting records have not been kept, or returns adequate for our audit have not been received from branches not visited by us, or
?the financial statements are not in agreement with the accounting records and returns, or
?certain disclosures of directors' remuneration specified by law are not made, or
?we have not received all the information and explanations we require for our audit

M.1L-0O3-:.
Martin Cowie (Senior Statutory Auditor) For and on behalf of PncewaterhouseCoopers LLP Chartered Accountants and Statutory Auditors Edinburgh 2012-12-04 00:00:00

BT Sle Euro Limited 7 Profit and loss account for the year ended 31 March 2012
Sheet1 All results derive from continuing operations
There have been no recognised gains or losses during either 2012 or 2011 other than as disclosed in the profit and loss account and therefore no separate statement of total recognised gains and losses has been presented
There were no material differences between the results as disclosed above and the results on an unmodified historical cost basis. Sheet2
The financial statements on pages 7 to 14 were approved by the Board of directors on ti- December 2012 and were signed on its behalf by

Mark Genikis Director
BT Ste Euro Limited
9.0 Accounting policies
Basis of accounting
These financial statements are prepared on the going concern basis, under the historical cost convention and in accordance with the Companies Act 2006 and applicable accounting standards in the United Kingdom The principal accounting policies, which have been consistently applied, are set out below
The preparation of financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of income and expenditure during the reporting period Actual results could differ from those estimates Estimates are used principally when accounting for investment impairment, provisions for liabilities and charges and taxes
Investments
Investments are carried at cost less provision for impairment Investments are tested for impairment by the directors when an event that might affect asset values has occurred An impairment loss is recognised to the extent that the carrying amount cannot be recovered either by selling the asset or by the discounted future cash flows from the investment
Taxation
The charge for taxation is based on the profit for the period and takes into account deferred tax
Deferred tax is recognised in respect of all timing differences that have originated but not reversed at the balance sheet date, where transactions or events that result in an obligation to pay more tax in the future or a right to pay less tax in the future have occurred at the balance sheet date
A net deferred tax asset is recognised as recoverable and therefore recognised only when, on the basis of all available evidence, it can be regarded as more likely than not that there will be suitable taxable profits against which to recover carried forward tax losses and from which the future reversal of underlying timing differences can be deducted
Deferred tax is measured at the average tax rates that are expected to apply in the periods in which the timing differences are expected to reverse based on tax rates and laws that have been enacted or substantively enacted by the balance sheet date Deferred tax is measured on an undiscounted basis
BT Sic Euro Limited
10.0 Accounting policies (continued)
Cash flow statement
The Company is a wholly-owned subsidiary of BT Group plc The cash flows of the Company are included in the consolidated cash flow statement of BT Group plc, whose annual report is publicly available Consequently the Company is exempt under the terms of FRS 1 (Revised 1996) "Cash Flow Statements" from publishing a cash flow statement
Share capital
Ordinary shares are classified as equity Incremental costs directly attributable to the issue of new shares are shown in equity as a deduction, net of tax, from the proceeds
Foreign currencies
Trading transactions denominated in foreign currencies are translated into sterling at the exchange rate ruling when the transaction was entered into Monetary assets and liabilities denominated in foreign currencies are translated into sterling at the exchange rate ruling at the balance sheet date Exchange gains or losses are dealt with through the profit and loss account
BT Ste Euro Limited 11.0 Notes to the financial statements

1 Operating profit/ (loss)
Operating profit/(loss) is stated after charging 2012 Period 22 March to
2011.0 ? ?
Auditors' remuneration for audit services 5,000 5,000 Foreign exchange (gain) / loss (23,624,628) 2,052,144

2 Directors' emoluments
The directors are employed and remunerated by British Telecommunications plc or other group companies in respect of their services to the BT group as a whole No emoluments were paid to the directors in respect of their services to the Company in the year ended 31 March 2012 (2011 flub

3 Employee information
The average monthly number of persons employed by the Company during the year was nil (2011 frill)
4 Net interest payable 2012 Period 22
31 March 2011.0 Sheet3 BT Sle Euro Limited 12.0 Notes to the financial statements (continued)
5 Tax on profit/(loss) on ordinary activities
2012 Period 22 March to 31 March 2011.0

Current tax: UK corporation tax at 26% (Period 22 March to 31 March 2011 28%)
2172085.0

-601688.0

Total current tax charge / (credit)
2172085.0
-601688.0 The tax assessed for the period is the same as the standard rate of corporation tax in the UK
Sheet4 6 Fixed Asset Investment

Cost and net book value at 31 March 2012 and 1 April 2011
Brief details of principal associated undertakings were as follows Associated Undertaking Shares

1334069361.0

Name Activity

Tudor Minstrel Investment Holding Company % of Country of Holding incorporation (and operations) 30 England and Wales
In the opinion of the directors, the carrying value of the investment is supported by its underlying net assets
BT Sle Euro Limited 13.0 Notes to the financial statements (continued)
7 Debtors Sheet5 Amounts owed to group undertakings include an interest bearing (EUR 12 month LIBOR plus 260 basis points) loan facility of ?384,997,291 (2011 ?398,383,098) from British Telecommunications plc and is repayable within 12 months
9 Called up share capital

Allotted, called up and fully paid 225,110,000 (2011 225,110,000) ordinary shares of ?1 each

2012 2011
i I
198,264,929 198,264,929 10 Reserves
Share Profit and premium loss account account ? ?
Balance at 1 April 2011 739,565,222 (1,547,200)
Profit for the financial year 6,182,089
Balance at 31 March 2012 739,565,222 4,634,889 Sheet6
At 31 March 2012, there are no contingent liabilities or guarantees other than those arising in the ordinary course of the Company's business and on these no material losses are anticipated
13 Controlling entities I The Company is a wholly- owned subsidiary of British Telecommunications plc which is the 1 immediate controlling entity The ultimate controlling entity as at 31 March 2012 was BT Group plc The parent undertaking of the largest group of companies into which the results of the Company are consolidated is BT Group plc, a company incorporated in England & Wales Consequently the
Company is exempt under the terms of FRS 8 "Related Party Disclosures" from disclosing details of transactions and balances with BT Group plc, fellow group subsidiaries and associated undertakings, and those deemed under control during the year ended 31 March 2012 Copies of the financial statements of BT Group plc may be obtained from The Secretary, BT Group plc, 81 Newgate Street, London EC IA 7AJ
The parent undertaking of the smallest group of companies into which the results of the Company are consolidated is British Telecommunications plc, a company incorporated in England & Wales Copies of the financial statements of British Telecommunications plc are available from The

Directors Report 8

Directors' report for the period ended 31 March 2011
The directors submit their annual report and the audited financial statements of BT Sle Euro Limited (the"Company") for the penod from incorporation 22 March 2011 to 31 March 2011 The registered number of the Company is 7573610
The directors' report has been prepared in accordance with the special provisions of Part 15 of the Companies Act 2006 relating to small companies
Review of activities and future developments
The Company was incorporated on the 22 March 2011 The Company's pnncipal activity is to act as an investment holding company within the British Telecommunications plc ("BT") group of companies The directors do not anticipate any change in the Company's principal activity in the foreseeable future
Principal risks and uncertainties
The directors of BT Group plc (the ultimate controlling entity of the Company) manage the group's nsks at a group level, rather than at an individual business unit level For this reason, the Company's directors believe that a discussion of the group's risks would not be appropriate for an understanding of the development, performance or position of the Company's business The principal nsks and uncertainties of BT Group plc, which include those of the company, are discussed on pages 39 to 43 of the group's annual report which does not form part of this report
Key performance indicators ("KPIs")
The directors of BT Group plc manage the group's operations on a divisional basis For this reason, the Company's directors believe that analysis using key performance indicators for the Company is not necessary or appropriate for an understanding of the development, performance or position of the business of the Company
Results and dividends
The loss before taxation was ?2,148,888 from incorporation to 31 March 2011 The credit for taxation was ?601,688 which left a loss after taxation of ?1,547,200
The directors do not recommend the payment of a dividend in respect of the period to 31 2011-03-01 00:00:00
BT Sle Euro Limited 3 Directors' report for the period ended 31 March 2011 (continued)
Directors
A list of the current directors is set out on page 1 All were appointed to the board on 22 2011-03-01 00:00:00
Statement of directors' responsibilities
A statement by the directors of their responsibilities for preparing the financial statements is included on page 4
Auditors and disclosure of information to the auditors
So far as each of the directors is aware, there is no relevant information that has not been disclosed to the Company's auditors and each of the directors believes that all steps have been taken that ought to have been taken to make them aware of any relevant audit information and to establish that the Company's auditors have been made aware of that information
The auditors, PricewaterhouseCoopers LLP, have indicated their willingness to audit the Company and have been appointed

By order of the Board, I

Authorised Signatory for and on behalf of Newgate Street Secretaries Limited Company Secretary 2011-11-30 00:00:00 BT Sic Euro Limited 4.0
Statement of directors' responsibilities for preparing the financial statements
The directors are responsible for prepanng the Directors' Report and the financial statements in accordance with applicable law and regulations
Company law requires the directors to prepare financial statements for each financial year Under that law the directors have prepared the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law) Under company law the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the company and of the profit or loss of the company for that penod In preparing those financial statements, the directors are required to
?select suitable accounting policies and then apply them consistently,
?make judgements and accounting estimates that are reasonable and prudent,
?state whether applicable UK Accounting Standards have been followed, subject to any matenal departures disclosed and explained in the financial statements,
?prepare the financial statements on the going concern basis unless it is inappropnate to presume that the company will continue in business
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the company's transactions and disclose with reasonable accuracy at any time the financial position of the company and enable them to ensure that the financial statements comply with the Companies Act 2006 They are also responsible for safeguarding the assets of the company and hence for taking reasonable steps for the prevention and detection of fraud and other irregulanties
BT Ste Euro Limited
Independent auditor's report to the members of BT Ste Euro Limited
We have audited the financial statements of BT Sic Euro Limited for the period ended 31 March 2011, which comprise the Profit and Loss Account, the Balance Sheet, the Accounting Policies and the related notes The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards (United Kingdom Generally Accepted Accounting Practice)
Respective responsibilities of directors and auditors
As explained more fully in the Directors' Responsibilities Statement set out on page 4, the directors are responsible for the preparation of the financial statements and for being satisfied that they give a true and fair view Our responsibility is to audit and express an opinion on the 1 financial statements in accordance with applicable law and International Standards on Auditing (UK and Ireland) Those standards require us to comply with the Auditing Practices Board's Ethical Standards for Auditors
This report, including the opinions, has been prepared for and only for the company's members as a body in accordance with Chapter 3 of Part 16 of the Companies Act 2006 and for no other purpose We do not, in giving these opinions, accept or assume responsibility for any other purpose or to any other person to whom this report is shown or into whose hands it may come save where expressly agreed by our pnor consent in wnting
Scope of the audit of the financial statements
An audit involves obtaining evidence about the amounts and disclosures in the financial statements sufficient to give reasonable assurance that the financial statements are free from matenal misstatement, whether caused by fraud or error This includes an assessment of whether the accounting policies are appropriate to the company's circumstances and have been consistently applied and adequately disclosed, the reasonableness of significant accounting estimates made by the directors, and the overall presentation of the financial statements In addition, we read all the financial and non-financial information in the BT Sle Euro Limited Director's Report for the penod ended 31 March 2011 to identify matenal inconsistencies with the audited financial statements If we become aware of any apparent material misstatements or inconsistencies we consider the implications for our report
Opinion on financial statements
In our opinion the financial statements
?give a true and fair view of the state of the company's affairs as at 31 March 2011 and of its loss for the penod then ended,
?have been properly prepared in accordance with United Kingdom Generally Accepted Accounting Practice, and
?have been prepared in accordance with the requirements of the Companies Act 2006
BT Ste Euro Limited 6
Independent auditor's report to the members of BT Sle Euro Limited (continued)
Opinion on other matter prescribed by the Companies Act 2006
In our opinion the information given in the Directors' Report for the financial period for which the financial statements are prepared is consistent with the financial statements
Matters on which we are required to report by exception
We have nothing to report in respect of the following matters where the Companies Act 2006 requires us to report to you if, in our opinion
?adequate accounting records have not been kept, or returns adequate for our audit

?the financial statements are not in agreement with the accounting records and returns,

?certain disclosures of directors' remuneration specified by law are not made, or
?we have not received all the information and explanations we require for our audit.

Martin Cowie (Senior Statutory Auditor) For and on behalf of PricewaterhouseCoopers LLP Chartered Accountants and Statutory Auditors Edinburgh It) 0...,c144" 2011 BT Sic Euro Limited 7
Profit and loss account for the period ended 31 March 2011
Sheet1 The loss on ordinary activities before taxation denves entirely from continuing activities
Other than the loss for the financial pcnod, there have been no other recognised gains or losses during the penod ended 31 March 2011
There were no matenal differences between the results as disclosed in the profit and loss account and the results on an unmodified histoncal cost basis

BT Sle Euro Limited 8