JT Press Report 2020/2021

Together, we are ready for tomorrow Progress Report 2020/2021

Proudly connecting our islands for over 130 years

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The New Normal: Supporting our Islands through COVID-19 In March 2020, Jersey, like many other jurisdictions, went into lockdown in a bid to slow the spread of coronavirus.

As a business JT had to act quickly and make significant operational changes, to allow us to support our islands businesses and communities. Overnight we transitioned our own teams and systems to work from home, so we could help our customers with their challenges.

During the COVID-19 lockdown in 2020, we; • Increased speeds to fibre customers from 500Mb to 1Gb free of charge – these remain in place today • Suspended all home broadband overage charges • Paused late payment fees

A fast and resilient network

• Provided all local fixed line calls free of charge

Our teams and networks responded very well to the challenge and we introduced measures to support islanders with some financial support and met the significant increase in digital demand.

• Ensured disadvantaged children were provided with free connectivity for home schooling

• Provided 6 months free broadband for vulnerable customers

We also provided all of the telecoms infrastructure for Jersey's Nightingale Hospital free of charge.

We wanted to act quickly to support those in the greatest need and whilst customer usage during 2020 increased significantly, during the peak of lockdown our networks performed to a level that has been compared to Christmas Day, every day. We’ve got one of the fastest networks in the world and we wanted to make sure that all of those who are now working from home have the same access and experience as they would if they were in the office.

All JT statistics provided are for the period of March – December 2020, and any comparisons are for the same period the previous year (2019) unless otherwise stated.

JT Progress Report 2020/21

2020 saw an increase in data and channel use Website

53%

increase in website visits

284%

i ncrease in visitors to our online help pages

Calls and data usage

17%

increase in fixed line calls

28%

i ncrease in mobile calls (by minutes)

57%

i ncrease in broadband data usage

14%

i ncrease in mobile data usage

Digital customer care

93%

i ncrease in emails requesting support and advice

114%

i ncrease in livechats with our teams

203%

i ncrease in JT My Account app users

Customer compliments

82%

i ncrease in customer compliments received by our Contact Centre team

The environmental impact of world-class connectivity Outside of the business and social benefits of keeping in touch with each other digitally during the pandemic, we were all starkly reminded of the additional environmental benefits that followed.

The total number of people travelling off-island in 2020 was around 79% lower than the previous three-year annual average, that’s a significant decrease in carbon emissions and pollution.

On-island travel reduced in the same vein, as having the digital connectivity to power home working and schooling island-wide, reduced the need to commute and our roads became cleaner and safer.

Whilst the Government’s restrictions forced these immediate changes in many ways, we hope that our network capabilities encourage people and businesses to think differently about their travel habits.

There will always be a need for travel, but we hope that by providing a reliable and trusted network, we are offering an alternative for unessential travel, for the well-being of our island and the planet.

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JT Progress Report 2020/21

Zack Perree and Head Teacher Dr. Nicholas Roberts Sark School

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Contents Chairman’s Foreword

4-5

CEO’s Business Review

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Powering Connections While We’re Apart

10-11

Taking Our Business Forward – A Perspective Of The Evolution Of Strategy In JT

12-13

A Part Of Guernsey’s Digital Future

14-15

JT On An International Stage – A Year Of Evolution And Growth

16-17

Tech Trends For 2021 And Beyond

18-19

Our Sustainability Strategy

20-21

JT Sustainability 2020, The Year Of Change

22-23

Our People

24-25

Embracing Change

26-27

Better Together

28-29

Our Stories, Our Communities

30-31

Our Performance

32-33

Performance Review

34-35

Board Of Directors

36-37

Board Effectiveness

38-39

Corporate Governance

40-43

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JT Progress Report 2020/21

Chairman’s Foreword 2020 was a year we will never forget; it was a year which challenged all of us – businesses, governments, families and individuals – nothing was left untouched by the effects of COVID-19.

Perhaps the defining theme for the year was actually how each one of us responded and adapted to those very serious challenges.

There is no doubt that it has been a difficult year for JT – but one which I know we have emerged from stronger, and optimistic about delivering future success for our business, for our customers and for the communities we serve.

One reason for that confidence is our base in the Channel Islands, where the local governments responded to the emerging pandemic swiftly, decisively, and effectively – keeping our communities safe and minimising economic impact – such as at one point, paying up to 80% of the salaries for the private-sector employees who were unable to work.

For JT, 2020 was about playing a critical role in supporting those communities, delivering the connectivity needed to make the transition from working in the office and learning in schools, to working and being educated at home and in keeping people entertained and in touch when they couldn’t meet up.

We are very proud to have been able to provide the infrastructure needed to make life a little easier; Jersey was one of the better prepared countries when almost overnight the community was told to ‘work from home’ and tight restrictions prevented face-to-face socialising and travel. Our fibre network stepped up to the challenge, and we swiftly moved to provide free local calls, removed charges for exceeding data limits and increased bandwidth to make it as simple as possible for everyone to make that transition.

Whatever permanent change this pandemic has created in the way we live, learn and work in the future, we will be there to support our people, our customers and our communities.

Phil Male Chairman

Since this was 2020 though, nothing went 100% as planned. Having just successfully enabled that mass cultural shift to home-working…on a Sunday night in the middle of July, our network failed.

The reasons for that, and how we reacted to them, have been well-documented; but I am grateful for this opportunity to add my personal thanks to the dedicated team at JT who worked so hard, in very difficult circumstances throughout the night, to get the systems back up and working as quickly as possible, and to offer my apologies to everyone impacted by that unprecedented incident.

We have also faced challenges this year in delivering the ‘999’ service to an acceptable level – a service that JT has looked after in Jersey for more than a century.

The detailed review we conducted and the independent JCRA investigation have been genuinely helpful in establishing the exact causes of the problems and resolving them, as well as determining how the service should be developed both for JT and the other operators.

Again, the hallmark of last year was not that a serious problem arose; but that we proved how we could handle it in difficult circumstances, while our entire workforce was working remotely, and that we could learn from the experience, giving us greater confidence for the future.

That idea - using our experience in 2020 to build back more strongly - is reflected in the additional work we have undertaken to further develop the ‘999’ service. As you will see in our CEO, Graeme Millar’s Business Review we are working with the Government to use modern technology to improve the service, making it more targeted by enabling the emergency services to quickly locate someone in need of their assistance.

But 2020 has not simply challenged us all with a global pandemic, it has also demonstrated just how political decisions around the world have consequences in our local markets. As a telecoms company our business is connectivity, and that means we operate on a global stage. 2020 was the year the UK left the European Union and we saw tension in East-West trade conditions, especially in the technology sector.

For JT, supporting the islands is always our priority, so we took a prudent approach and re-visited our costs, looked at preserving cash, and reconsidered our business profile in light of the emerging trading conditions.

This led to the decision to sell our UK-headquartered Worldstone business. Having developed it over the last

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eight years, we felt the time was right for new owners, who specialise in customer experience solutions, to take it forward, and we wish Worldstone every success in the future.

They bring fresh new ideas to JT and I’m thoroughly looking forward to working with them to take JT forward to new successes.

We also withdrew from our activities in the international voice trading markets. With more turbulent global economic conditions ahead and an ever-increasing amount of data being carried internationally this was an area of our business that had simply become unattractive, and which offered very little opportunity for growth. The impact on our revenues this year has been significant (a little over £40m), but because of the low margin nature of voice services, there was minimal impact on our profits.

These appointments are an example of how, despite the short-term challenges of 2020, we have continued to fix our planning horizon on the long-term – in all aspects of our business. It is for this reason that this year we have pulled together all our various programmes that managed the social and environmental impact of our business into one ambitious 10-year Sustainability Strategy. We fully support Jersey’s 2030 carbon neutrality targets, and as a corporate citizen of the islands we have a moral obligation to do everything we can to build a sustainable future for us all.

Looking ahead 5G will be key in delivering the level of connectivity which future communities will rely on. We have been running successful trials and have committed to use only use vendors preferred by the UK to build our network. As part of that commitment, we will also gradually remove equipment which is not supplied by preferred vendors from our existing networks by 2027.

The rapidly increasing global need to use digital connectivity for business-critical data provides real opportunities for JT. Our ability to innovate and grow from our Jersey base means we can develop high value niche services in global off-island markets. We have an extensive portfolio of services that operate across the world, some of which are rapidly maturing such as our IoT (Internet of Things) business, and some of which we continue to nurture such as our Fraud Protection services. We will continue to invest and develop new ideas – embracing the opportunities that emerging digital and software-based services offer us and the unique world-leading position we have established with our advanced infrastructure investments over the last few years.

At JT, our commitment to always looking forward starts at the top, and in 2020 we made some changes as part of our programme of constantly refreshing the expertise at Board level. John Kent retired as our CFO and Sean Collins retired as Chairman of our Audit and Risk Committee. Both John and Sean have served JT well over the last few years and I would like to record my thanks for their service, their herculean efforts in helping JT transition to IFRS accounting standards, and their invaluable contribution to the Board – they will be sorely missed.

At the same time, we welcome three new faces to our Board. Hélène Narcy has joined as our new CFO, and Mark Shuttleworth and Angus Flett have joined the Board as Non-Executive Directors. All three have reached the top of their chosen fields, and have extensive experience both in the communications sector, and in corporate governance.

We’ll be doing that not just within our own business but also helping others to do the same. At a very simple level, technology, such as fibre broadband, will be critical in helping to reduce the need for unnecessary travel, or in allowing more of our technology hardware, that is ultimately connected to our home routers, to be virtualised in our Data Centres as software applications, reducing the need to produce so many high-energy individual devices.

Looking back on a year like 2020, which ‘whipped up’ considerable headwinds for all of us, it is seductive to see only the negatives, and characterise it as simply a ‘bad year.’ That’s not how I see it. No one escaped problems in 2020, no business, government or family has come through it without a story to tell. We have all suffered, in so many different ways.

Ultimately, what is the point of telling those stories, as JT does here, in this annual progress report? For me, the point is to share our experiences, to be open about the common challenges and difficulties we have all faced – and in so doing, to help both ourselves and others to become stronger for the future.

That is why at the end of a year which none of us will ever forget, we can look positively on the collective strength we have discovered; and which we can now build on again, as we head through 2021.

I wish everyone well, be safe, and be assured you can count on JT’s continuing efforts to drive positive, forward momentum in our business, our people and in support of our communities.

Chairman, 26th April 2021

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JT Progress Report 2020/21

CEO’s Business Review Sitting down to write this is a good opportunity to reflect on a year which has undoubtedly brought significant challenges - but which has also planted the seeds for optimism in the future ahead.

Graeme Millar CEO

One of those is the way that our local community has pulled together, and I couldn’t be prouder of JT’s pivotal role in helping that to happen. To briefly recap, we reduced costs for our customers wherever possible, and doubled broadband speeds to make it easier for people to work, learn and be entertained at home.

Essentially, our role is to keep our customers connected, and with that in mind, once the next set of official speed results are in, we fully expect Jersey to take the number one spot in the world for broadband speeds, after reaching third place in 2019 and then second in 2020. I want to once again thank Islanders and the Government of Jersey (GoJ) for standing with us on this project, which began over a decade ago.

Our strong relationship with the GoJ is continuing in two important ways. Firstly, JT has been appointed by the Government to work with our partners ITC, sharing a key role in protecting government healthcare services from cyber threats and defending their critical systems throughout the current crisis and beyond.

JT Ace winners of 2020 – nominated by their colleagues

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“We have the secondfastest connectivity in the world and we are fibred throughout the Island by JT. So when it came down to having to work from a distance all that work that was put in by JT over the last few years really helped”.

Assistant Treasury Minister Lindsay Ash, Jersey Evening Post, 30 January 2021

Secondly, with the trial of RapidSOS, we became the first jurisdiction in Europe to deploy digital upgrades to a 999 ‘emergency services’ system, providing accurate location data for the caller in trouble, and so making sure help can reach them even more swiftly.

We have also created business solutions that are flexible enough to be adapted for use in our critical healthcare services.

One of those solutions was our new JT SD-WAN designed for multi-site workplaces, connecting everyone across various locations via a dedicated secure link to their corporate network and systems.

The Government of Jersey’s Digital Health Team asked JT to develop a solution to help ensure essential patient diagnosis was not hindered in any way due to health professionals working remotely.

The JT solution was flexible and adaptable enough to be deployed into the homes of Consultant Radiologists. Over that secure link, they could instantly review scans and x-rays live as emergencies happened, without breaching patient confidentiality or compromising their safety, relaying crucial advice to the team at the hospital.

In 2020, we also further strengthened our relationship with the States of Guernsey, having been selected by their chosen IT provider, Agilisys, to deliver the very best technology solutions, as they embark on an ambitious 10-year program to modernise Guernsey’s IT systems, and transform and digitise their public services.

As the COVID-19 pandemic swept across the world, many pointed out that although we must deal with the immediate problems it caused, we mustn’t lose sight of longer-term problems. Whilst we face this global pandemic, and its economic shock, the other big policy challenge of our lifetime - the climate emergency - has not gone away.

Much of the groundwork for how our industry can provide the technological solutions to many of the world’s problems has been done. For our part, JT is forging ahead with helping people make their homes smarter and capable of making their living space more sustainable. The advent of automation for ‘smart’ homes and businesses has been brought about by the advancements in connectivity and made possible by our world-class, full-fibre network.

Applying the technology in this way had never been done before, and in some cases, it meant they could give guidance to surgeons while they had patients on the operating table, remotely being in attendance to support and complete the medical team. That’s the kind of difference that technology can make, and we were proud to be a part of that.

2020 was also a year where people took the opportunity to get some exercise, enjoy the great weather, and go out and explore; many Islanders made use of the now familiar luminous yellow and black EVie bikes.

In each of those bikes, and in EVie’s fleet of electric cars and vans, there is a JT SIM that sends data back to the company’s HQ; it gives them real-time information on where their bikes and vehicles are, and what their battery status is. Thanks to our partnership with EVie, greener transport solutions are beginning to happen. It’s an example of the many ways JT is contributing to our community.

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Every year we ask our people to choose a charity for us to work with; this year, inspired by one of our own Macmillan Volunteers, we put our hearts, expertise and presence behind Macmillan Jersey.

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We all know someone who has been affected by cancer, and with each person’s experience there is a story. For many, Macmillan Jersey plays a huge part in that story, supporting them and their loved ones in good times, and bad. Together, we raised over £25,000 for Macmillan Jersey and I’m delighted we were able to play a part in helping them carry on their invaluable services in such a challenging year.

All of JT’s successful work is made possible by the many talented and dedicated people in our teams, and once again, their hard work was recognised beyond our shores. We brought home prestigious awards for digital innovation in how we look after our customers, and exceed their expectations. We were also shortlisted as finalists in the World Communications Awards (known fondly as the ‘Oscars’ of the telecoms industry – for those within it!), and in the Connected Britain Awards, for the work we are doing with the Internet of Things (IoT). These accolades from our peers are a recognition of the commitment to innovation and progress that we strive for, even during adversity.

At JT, we are united by a common culture of values, flexibility and co-operation.

There is no doubt that a crisis, such as the COVID-19 pandemic, is going to bring about irreversible changes in everything we do; that will bring both challenges and opportunities. But we will emerge from it more strongly, showing commitment, adaptability and solidarity.

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“Together, we raised over £25,000 for Macmillan Jersey”

JT Progress Report 2020/21

What has been an incredibly tough year has also become our finest hour, there is so much to be proud of, and grateful for. Whatever role you played – office, operations, logistics, retail, contact centre, supplier, shareholder, family, friend, neighbour or customer. Thank you, we couldn’t have done it without you.

New ways to communicate

We talked, we listened, we worked together Last year our people rose to the challenges that came our way and responded to the crisis with a sense of urgency, purpose and genuine empathy.

Their expertise, dedication and ability to adapt shape who we are and because of that we worked together to turn obstacles into opportunities.

They showed immense courage and strength, turning in for work every day even if it was from under the stairs, the spare room or the kitchen table - they did it with smiles on their faces and a heartfelt desire to serve others.

In 2020 we had 1 JT Connect Roadshow before lockdown, we then moved online to stay in-touch with our people. I hosted 15 Q&A webinars supported by a member of Exco on each occasion – no question was off limits, honesty and transparency was always on the agenda.

Over 50% of JT People tuned in live to each webinar, with our US and Australian teams and those working in the Call Centre and Retails outlets catching up by watching the video on our internal JT Exchange channel.

Over 600 people paid a real living wage – we believe in paying our people a fair wage which is why we’ve been certified by the Living Wage Foundation since 2017

Connect Q&A Webinar with Nicola Reeves, Group HR Director, Graeme Millar, CEO and Daragh McDermott, Managing Director, Channel Islands

I couldn’t be more proud or more excited as together we begin an exciting new phase for JT as we seize the opportunity we now have to re-shape the way we do things.

CEO 26th April 2021

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Daragh McDermott Managing Director, JT Channel Islands

Powering Connections While We’re Apart JT’s priority throughout its 132-year history has always been to keep our customers connected. Never was that more apparent than in 2020, when our teams responded to the escalating global problems with a real sense of purpose and pride.

Here, I’d like to focus in on some of the stories from our business in the Channel Islands which I think weave together the strands of how JT supports the local communities.

Our COVID-19 response Fast, reliable, connectivity to every household was vital to ensure islanders could continue to work, learn and socialise from home.

To accommodate a demand for our services that was truly 24/7, we increased our network capacity, doubling the minimum available speed for all broadband customers from 500Mbps up to 1Gbps at no extra cost.

We provided a free mobile or fixed broadband connection to school children and care workers, so they could continue their education, training and employment remotely, interacting with teachers, lecturers and employers online.

Understanding that connectivity is a necessity and lifeline for many, we suspended charges for exceeding broadband limits, provided free local landline calls for every customer for a 3-month period, or as long as was needed. We also continued all services to residential and small business customers unable to pay their current bills, waiving late fees and including them in the network capacity upgrade.

To mitigate the financial effects of the crisis for all customers, we reviewed and improved our own payment terms, ensuring small, local suppliers got paid quicker. We encouraged anyone in financial difficulty to contact us to discuss a workable payment plan.

JT Progress Report 2020/21

Our own teams embraced home working, setting up remote and virtual customer services to deliver seamless customer care amidst escalating traffic to our contact centre and digital channels.

With shopping becoming an almost exclusively online activity, we increased our own online product range and expanded our fulfilment team within 48hours to meet the demand, delivering orders direct to homes in 24hours.

With this, we prioritised a safe, contactless delivery and priority given to those who were vulnerable.

As businesses, including our own, shifted to remote working to protect workers while continuing to operate, the majority of activity moved to the digital world — increasing the risk of cyber attacks. As such we also enhanced our existing portfolio of services, enabling us to provide sophisticated next-generation managed security services.

Our engineers worked with local utility companies, contractors and the Government of Jersey to make sure the Nightingale Wing of the General Hospital was built in record time with all the connections that are vital for a modern hospital to function properly.

We also played a major role in setting up the mobile COVID Testing centres and in getting the first large vaccination centre open to begin Jersey’s immunisation programme.

Jersey’s Nightingale Ward Completed in April 2020

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Taking Our Business Forward

A Perspective Of The Evolution Of Strategy In JT.

One of the clear lessons to be drawn from our experiences over the last twelve months has been that organisations which continually ‘scan the horizon’ and prepare thoroughly for what they see there, are more stable, resilient and ultimately successful.

Sonal Kapasi Strategy Director, JT Channel Islands

Sonal joined JT as a Strategy Director in November 2019. With 25 years of rich work experience behind her; she brings strong cross border, cross culture experience of working in one of the largest Global telcos, Bharti Airtel across India, South Asia and Africa. She took the lead in the companies business performance; strategy; governance & controls; planning, forecasting & reviews; corporate finance; investor relations and stakeholder communications.

Sonal has extensive understanding of telecom operations; technology; customer, market and regulatory environments; and played a key role across areas of leadership; process transformation and institutionalisation; financial & operations management and people and cultural integration.

Prior to joining JT, she was CEO of Bharti Global, Jersey and brings a knowledge and experience of running the assets portfolio of a large sized family office. She’s also held various board positions; member of audit and compensation committee.

Sonal is a qualified Chartered Accountant from the Institute of Chartered Accountants of India.

That ‘always looking forward’ perspective is particularly relevant in the telecoms sector, both because of the rapid speed of change, and because of how important technology – and specifically, connectivity - is becoming to the way we live, every day.

Jersey’s full-fibre broadband network is a prime example of that. When JT started work on it in 2012, some questioned the need; but in 2020, with the majority of the population working from home, the capacity and resilience of that network was clear to all.

Our business is one in which if you only focus on the requirements of today, then you will swiftly be left behind – the key is doing today what you actually need to do tomorrow.

Of course, as we go forward, the demands on JT’s network is only going to increase, and that’s why we need a clear strategy on how we are going to protect and develop it, in the future.

Increasingly, our lives are becoming ever more connected, and JT must be ready to deliver what our customers require.

JT Progress Report 2020/21

Pathway to 5G The level of connectivity required by the Internet of Things, augmented and virtual-reality and artificial intelligence, provide telecoms operators with a huge opportunity to change the way their services are delivered to businesses and consumers.

5G will provide the means to exploit those technologies, but many operators lack the necessary infrastructure to be able to make it all work as it could. In Jersey, that pathway is much smoother, as the full-fibre network provides the perfect foundation for 5G, and subsequent technologies.

As noted, 5G networks are now being deployed around the world, and being tested in the Channel Islands, ahead of the necessary spectrum being allocated by the regulator – but we are already looking beyond that. Given the speed of change in this sector, we want to develop an advanced 5G network that is ready to switch to 6G when that becomes available to consumers.

We will, in effect, be ‘leap-frogging’ what many other telecoms operators are doing now, and getting us ready for new technologies as they emerge. Doing this will reduce the long-term costs of putting in a 5G network, and then replacing it only a few years later with the next-generation of technology.

UK telecoms security As well as being a ‘facilitator’ by providing access to developing technologies, JT also has a responsibility to keep its networks secure.

As connectivity improves and the number of devices connected to our networks rises, concerns over security from cyber criminals, and other threats, increases. As an infrastructure business providing networks which are essential to our everyday lives, we take that security extremely seriously.

To deliver that, we work very closely with the governments in the Channel Islands, and with the relevant security agencies in the UK. We stay in close contact with them, and liaise on our approach to these critical issues.

Last year, we set out our position in relation to so-called High-Risk Vendors (HRVs), which is fully aligned with the UK’s approach.

In fact, we are actually going beyond the UK’s planned removal of any 5G equipment which might be linked to HRVs by 2027, in that we will also be removing such equipment in the 2G, 3G and 4G networks by the same date, as well.

When we introduce a commercial 5G network in the Channel Islands, it will not include any HRV equipment.

Any such equipment used in the existing 5G test network is isolated from our existing mobile and fixed networks and will steadily be phased out. That meets our commitments on sustainability by reducing replacement cycles and allows JT to buy a more efficient generation of network equipment, as it becomes available.

Given the speed of change in this sector, we want to develop an advanced 5G network that is ready to switch to 6G when that becomes available to consumers.

Our next steps Our strategy in these areas is all about making sure every one of our customers can enjoy the benefits of greater connectivity in terms of convenience, access to products and services, time-saving and flexibility, whether they are at home, work or on the move; and to stay ahead of the exciting developments in this area as they rapidly emerge.

We also know that we have a responsibility to deliver all that as securely as possible, and by working closely with our partners in the Channel Islands, and the UK, we will be doing all we can to assess and mitigate any risks.

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A Part Of Guernsey’s Digital Future

Paul Taylor Managing Director, JT Guernsey

For over two decades JT has worked with local technology and infrastructure providers, to deliver resilient, stable and secure IT services, pioneering new technologies and deploying a range of leading products and services across the Bailiwick of Guernsey. Never more so were those partnerships and our resilience more tested than in the past year.

Transforming Guernsey We are extremely proud to have been selected to be a part of the programme, managed by Agilisys, that began in 2020 to transform Guernsey’s digital services. The 10-year SMART Guernsey Partnership now forms an essential pillar in the Bailiwick’s strategy to move forward out of the pandemic.

The next twelve months will be critical for Guernsey to achieve its ambition of digital transformation.

We will be working on providing a fully operational, modernised voice and data network for the States of Guernsey using leading-edge technology, which will be a sustainable, long-term solution to the Bailiwick’s needs.

Since we signed contracts with Agilisys, just over twelve months ago, we have delivered: Public Wi-Fi at the ports and other key public sites, facilitating the critical Track & Trace programme Increased the bandwidth to all States of Guernsey sites on JT Fibre to 1Gb speeds Began the final process to upgrade internal cabling in States of Guernsey buildings Supported Delivery of Digital Fortress - with JT hosting Government IT services in our Data Centres Worked with other local partners to deliver services on time and on budget

JT Progress Report 2020/21

In it together Operating in small jurisdictions comes with a strong sense of community. During the Pandemic our people worked tirelessly to ensure the resilience and reliability of fundamental services, contributing to the continued well-being and economic activity of our Island. Like everywhere else we faced significant challenges when overnight we moved to online media briefings, virtual meetings, businesses moved to work from home and our children didn’t return to the classrooms.

As a business we were able to step up and provide support to our customers, ensuring they stayed connected with friends and family, and were also able to carry on working and learning from home.

We made residential landline calls to local numbers free for our Coreline and JT One customers, and our JT Fibre broadband customers continued to benefit from 1Gb download and upload speeds.

The only jurisdictions that were able to meet that increased demand from users were the ones that had invested in rolling out fibre infrastructure, the only means of guaranteeing broadband speeds and levels of broadband quality is by having a fibre connection that runs all the way to the home or business.

Guernsey’s Government has highlighted the need to overhaul its telecoms policy with a heavy emphasis on digital connectivity. That commitment to provide a fit-for-purpose framework for delivering improved broadband and 5G connectivity is something we are very pleased to be a part of and welcome the opportunity of sharing our experience of having rolled-out fibre to all broadband customers in Jersey.

We will continue to work with the States of Guernsey, and the Broadband Working Group, to invest in the island’s digital infrastructure that will support the Island’s recovery. Guernsey can make a virtue of its small size and ability to make swift and far-sighted decisions; it can learn from elsewhere and build a fibre network which will be the backbone of the island’s telecom infrastructure for many decades to come.

Community As part of Guernsey’s closely-knit community we are proud of our longstanding partnership with many local institutions and popular events, and look forward to once more in support of the local community and charities we represent and serve.

We also provided support for our partners as critical behind-the-scenes systems were implemented as fast as possible, from the COVID-19 track and trace programme, to Travel Tracker and the vaccine programme. Digital technology kept the home fires burning, built from the ground-up in a matter of weeks and months.

Fibre network With many people working from home intermittently or full-time, the demand for faster broadband is constant. A demand that had already been growing locally at a steady pace as the number of devices requiring higher bandwidths were becoming more popular. COVID-19 fuelled an even greater need for speed and extra bandwidth as it became an essential service for people to stay connected.

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JT Progress Report 2020

Barna Kutvolgyi Managing Director, JT International

JT On An International Stage A year of Evolution and Growth.

‘Flexibility’ has been the touchstone for JT International in 2020; and that looks set to continue through 2021.

It is also the main reason why a Tier 1 global telecommunications firm, based in the Channel Islands is still going from strength to strength on the world stage.

JT International is a small, but expert, team who can move swiftly to respond to the needs of our global customers; and who can also quickly pivot to maximise changes in the market. Something we have certainly seen in 2020.

Worldwide travel was reduced because of COVID-19 restrictions, diminishing the need for travel SIMs that enable customers to connect cost-effectively to a local network while abroad; however the connected devices market has seen a massive growth. Working from home has accelerated the need for machines to communicate between each other without human intervention.

During 2020 the JT International team continued to connect customers’ devices and deliver some outstanding new products in the field of eSIM, which helps customers customise their connectivity remotely.

As human access has been restricted by virus control regimes, our customers have relied on equipment – such as remote cleaning machines – to do the job instead; and JT International’s role is to enable that kit to be connected, controlled, and monitored.

Throughout 2020 people across the world have relied even more heavily on their technology - which also brings with it the risk of cyber-crime.

JT Progress Report 2020/21

In 2020 we launched our JT hosted educational webinars to help customers understand IoT technology and the potential it has. We may not have been able to travel but we engaged and interacted with our customers, partners and suppliers all over the world.

Click here to view a selection of JT Webinars

Despite the many obstacles faced last year our IoT business saw significant growth in Asia-Pacific where our share went from 13% in 2019 to 30% in 2020. Our Fraud Protection Services continued to be another area of intense growth, as global businesses had an increased need to authenticate their customers‘ identity quickly, simply and correctly – resulting in our expansion into the Australian market, where we onboarded our first financial customer in Q4 2020.

JT sits in a key position between mobile operators, banks and other participants, providing continuity of service in what is an increasingly complex area of business.

Allied to that, most of us will already be using contactless payments, and for many years we’ve been able to pay for goods using smart watches. As contactless payments increase, so will the use of virtual wallets that instead of having just our payment cards details, boarding passes and cinema tickets, will also have many other bits of personal data in them. The so-called ‘Internet of Payments’ (IoP) is an area of huge potential and one where JT International can play a pivotal role.

For many years, JT has provided bulk SMS messaging services, another part of our global business which has been of real value to customers throughout the pandemic.

Many businesses and governments have wanted to use this method to stay in touch with people, especially within the finance and legal industries. SMS provides a solution that isn’t reliant on having an online signal or even a smart phone.

As well as developing knowledge, contacts and revenues in the global markets, which can then be used at home to benefit our Channel Islands customers, that relationship works both ways for JT International.

As a mobile operator, JT is able to provide comprehensive coverage of global number portability information through our direct operator connections and supply partners. Until recently we had MNP available only in the UK, where we had excellent market standing but we have now extended this to cover Germany, with other locations in the pipeline. That final example is a good one to sum up the real journey of JT International in recent years; it has taken our experiences in the Channel Islands, utilised the skills and flexibility of the talented team we have within JT, and delivered real success in markets across the world.

We see JT International as proof that although we might be based in a small archipelago in the English Channel, there is no need to let that limit our horizons.

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JT Progress Report 2020/21

Tech Trends For 2021 And Beyond In a way, the unpredictability of 2020 has made 2021 a much easier year to anticipate than most.

The state of the world is still in the limbo of the pandemic, with 2021 seeing a continuation of the trends and challenges that this created last year – a year that accelerated our understanding that technology can and must be a force for good.

From developing and distributing life-saving vaccines, to supporting businesses by helping them transfer to online operations, to tackling climate change, to online learning, technology’s critical role in our world now and in the future has never been more clear. As such, businesses have ample opportunities for proactivity. Investing in solutions like automation, SD-WAN, and remote security will give businesses the tools for safe, productive remote work. Telecare and home automation will continue to grow, and digital-first solutions won’t be optional extras anymore.

Here, some of our Leadership Team share their thoughts on our technology needs as we move forward.

Katie Corbett Director of Enterprise and Business Services

SD-WAN A Better Way to Network SD-WANs, or Software-Defined Wide Area Networks, have been growing in popularity thanks to their simplicity to implement and their ability to lower overheads. SD-WAN provides a faster and more versatile network than conventional systems and incorporates a next-generation firewall for added security against cyber attacks. Using Cloud-based technologies allows our customers to save time and money.

Teams can use a combination of home and office networks to form an SD-WAN, providing you with the security and quality you need. SD-WAN will benefit multi-office and multi-site workplaces, connecting everyone across various locations via a dedicated secure link to their corporate network and systems, all managed from a single point.

JT has recently worked with local healthcare providers to supply them with secure, reliable SD-WAN at a critical point in the pandemic. This allowed them to remotely review scans and x-rays in real-time and in some cases whilst patients were on the operating table.

Andy Jarvis Head of IT Operations

Safe Remote Device Management for Multi-Office Working When offices closed their doors in 2020, there was an immediate need for remote connectivity infrastructure that offered the same standard of service, support and security to employees - overnight.

Embracing a long-term multi-location infrastructure poses several cybersecurity safety hurdles, such as keeping home networks secure, managing the risk to devices that are on the go, and keeping IP and other data private. You can think of cybersecurity as a series of doors to your business’s data and resources. Any information stored digitally, and any device connected to the internet, is a unique doorway past your company’s security perimeter. Now that teams are working from home, this means that there are more doorways to secure than ever before, and companies have less control over those in their employees’ homes.

Businesses and IT departments will need to invest in modern security solutions to overcome this challenge. Namely, solutions that were created for the cloud and that use strong, reliable authentication measures.

19 Jon Collinson Head of Product Development

Sara McCarthy Head of CI Customer Operations

Technology Enabled Living - helping people to be looked after at home

Smart Automation Intelligent Environments that Work for You

The Jersey Care Model celebrates islanders’ improved longevity while acknowledging that this results in greater and more complex healthcare needs. To maintain high standards, Jersey will have to “keep up to date”, and Telecare has a crucial part to play.

In 2020 Home Automation came to life. People began to rethink the way they manage the basics of home living (utility bills, home security, Wi-Fi networks) as well as entertainment and added extras. We’ve also seen a rise in awareness of energy conservation which has driven a demand to manage consumption through automation technology.

Modern Telecare exploits fibre networks, AI, and an everexpanding range of sensors and alarms to enable people to live safely and independently in their home for longer. Modern Telecare can detect when a dementia sufferer wanders, a water or gas pipe leaks, or a smoke detector sounds.

JT offers custom automation services through Zero1, which includes designing intelligent environments, bringing automation into home entertainment, and helping homeowners become more environmentally friendly. Zero1’s suite of corporate products helps connect teams using cinematic displays in meeting rooms to host video conferences with multiple stakeholders.

In 2021, JT Telecare will offer an expanding range of services to everyone, whether they are ageing, disabled or emotionally vulnerable. Together with Telehealth services, GPs, OTs and community nurses will be able to monitor patients remotely and even make a diagnosis. This will ease the pressure on our island’s health system.

We will come to see smart-home technology as essential as electricity, heating or air conditioning – expected and relied upon. 2020 forced us to reconsider our home spaces and their suitability to our changing needs. 2021 will be the year to make those spaces work for us.

Tamara O’Brien Group Head of Customer Experience

Clare Messenger Global Head of Fraud Protection Services

Customer experience transformation - Omni-channel; the next generation

Fraud Protection Services Strengthening the Finance Sector

What was already a growing trend in digital customer interactions has vastly accelerated this past year, forcing “digitalfirst” into “digital-only” for many businesses. Online shopping is bigger than it has ever been, concerts, movie releases and even sports events have become digitised. Having lived through such a seismic global technology shift, in such a short time frame, it’s clear an ‘omni-channel’ approach is essential and a revolution in customer experience is on our doorsteps.

Customer expectations have not only changed, they’ve grown.

They expect consistent information to be at their fingertips, regardless of the channel they choose to engage with.

We see the need for seamless multi-platform brand experiences which ensure our marketing, service, sales and our help and support messages are directly served to the consumer, wherever they spend their time and however they choose to interact with us. It’s important we ensure that the customer experience delivered in a shop, in person, or on a phone, is replicated online or via an app, seamlessly.

Fraud, particularly identity theft, has been on the rise ever since the internet boom of the early 2000s.

As people continue to upload more of their personal information across multiple accounts and devices, it becomes increasingly easier for hackers and fraudsters to find and abuse that data.

No industry has felt this more than the Finance Industry, where the motivation for criminal activity is apparent.

Even something as simple as access to a person’s banking app can give a hacker complete control over that person’s finances — with life-changing consequences. Like every other industry, the finance sector has seen a major shift to digitalfirst solutions and user expectations. This has also increased the risk to customers substantially, which is why modern fraud protection services are a must.

Here at JT, we’ve spent years developing strong FPS tools for financial organisations. And in 2021, these systems will become even more critical.

To read JT’s full Tech Trends 2021 eBook, please visit www.jtglobal.com/2021

Our Sustainability Strategy

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JT Sustainability

2020, The Year Of Change

Tom Noel Director of Corporate Affairs and Sustainability, Company Secretary

2020 was the year JT shifted from delivering separate strands of activity on sustainability, to formalising a robust and ambitious 10-year strategy; addressing the increasing environmental pressures and social issues of our time, and most notably, where and how JT can really make a difference.

Organisationally, sustainability has captured the hearts and minds of our people and as we embrace this, we continue to embed sustainability into our company’s DNA. We’ve worked closely with stakeholders and the Carbon Trust to benchmark and baseline our carbon emissions and understand where we can make changes that benefit our communities. All of which helped us to create an overall blueprint for our Sustainability Strategy which provides a framework for the future and benchmarks well against some of the world’s leading companies.

Our Ambitions Our Strategy focuses on two main ambitions, centred around Planet and People - reducing our environmental impact, and promoting key social priorities, all underpinned by Transparent Reporting and Governance.

Planet

People

Power Consumption & Energy Efficiencies

Community

• Use sustainably sourced energy • Re-purpose our property estate • Reduce the impact of refrigerants

• Support local charities • Support vulnerable groups and communities, eliminating the digital divide • Raise awareness and support of Mental Health

Travel – to work and at work • Minimise our local and international business travel • Offer employees an alternative commute scheme • Offset essential travel with a “Gold standard verified” carbon offset scheme “Rwanda Borehole Clean Drinking Water” Circular Business Model • Reduce plastic in our stores • Stock products with eco-friendly packaging • Re-purpose legacy electrical products

Diversity, Inclusion & Belonging • Workforce diversity and inclusion • Social inclusion, sustainability, and accountability Safety & Security • Network & Cybersecurity, Personal Safety, Privacy & Data protection

JT Progress Report 2020/21

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What we have done so far Prior to the publication of our Strategy in 2021, the JT team had already been making big strides towards our objectives.

Some examples of which are below.

Planet

People

Power Consumption & Energy Efficiencies

Community

• Installed PIR sensors • Placed solar film on windows • Installed time clocks on all water boilers

• Helped to raise over £30,000 for Macmillan Jersey in 2020 • Support vulnerable groups and communities, eliminating the digital divide • Supported training of our Mental Health First Aiders

Travel – to work & at work • Minimise our local and international business travel • Offer employees an alternative commute scheme • Offset essential travel with a “Gold standard verified” carbon offset scheme “Rwanda Borehole Clean Drinking Water”

Circular Business Model • • • • •

Refurbished used phones for our people Paper bags in store Provided recycling bins in all our offices Removed all plastic cups from all our offices Helped to repurpose Avaya equipment by installing it for free for a local charity

Diversity, Inclusion & Belonging • • •

Celebrated International Women’s Day Conducted Neurodiversity training JT was Jersey’s first large-scale commercial organisation to become a Living Wage Employer

Safety & Security • •

•

Launched JT Total Wi-Fi Provided FREE Cybersecurity assessments for our customers Provided Managed firewalls and DDoS

To find out more about our 2020 progress or to view our full 10-year strategy report, please visit www.jtglobal.com/sustainability

Our People

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Embracing Change

Nicola Reeves Group HR Director

Where there’s change, there’s also an opportunity to make things better and COVID-19 gave us the cause to completely rethink the way we work.

When we moved into lockdown, we were lucky enough to have the network infrastructure to be able to go seamlessly from the office to home and everything ‘worked’. However, while the technology was there to make that happen, like most industries we were faced with a new challenge – how to look after an entire company; remotely.

The challenges were new and varied, which meant we needed to react quickly to change, creating and adapting as we went along. This was all made possible because of the huge trust we place in our people and their constant commitment to us, which has been so evident throughout the past year. They have continued to deliver the right outcomes for the business, for our teams and for our customers regardless of where they have been working.

Smart ways of working As restrictions eased, we began a phased return to our offices for those that wanted to or needed to, we introduced what we called our ‘Smart Ways of Working’ principles. This new policy gave our people a choice on how much time they spent working in the office, at home, or at any other suitable location.

This was the result of a company-wide collaborative approach.

It meant any change to our way of working was only going to be made with the involvement and contribution of our people, as well as the full support of our executive team.

JT Progress Report 2020/21

We introduced regular email updates and feedback surveys to help assess the well-being of our people, receiving an average engagement rate of 70%. It was based on feedback from our people across all locations that our new framework based on a flexible approach to working was created, and began as a 12-month trial in September 2020.

We know that by being flexible with hours, location and the surroundings our teams are working in, there are benefits to their mental and physical well-being, the environment and business productivity.

The well-being of our people Well-being is always important, but never more so than during a pandemic. By reviewing and adjusting employee benefits during this time, ensuring they were fit for purpose, made a huge impact on our people remaining positive and engaged.

For example, enhancing well-being programmes and providing access to mental health and stress management services became a vital part of our workforce support. As did access to COVID-19 testing where needed, as it really showed we understood the challenges they faced and that as an employer we were there to support them.

A sustainable future for all With environment and climate change playing a much bigger part in our lives, another benefit of these new smart ways of working was that by being flexible we can also reduce the need for unnecessary travel. For those who have chosen to come back to the office, we’re actively encouraging a more sustainable commute, such as walking, cycling or public transport. Also last year we launched a cycle subsidy scheme for our people and we’ll continue to shape and incentivise these decisions.

As a business we have committed that we will only be making trips off-island when absolutely necessary, and instead of travelling we will be linking up by using the collaborative technology that has become second nature to most of us in the last 12 months.

Diversity, inclusion and belonging Our ambition for JT is to create an inclusive workplace where everyone feels valued and respected, and every employee can be themselves and reach their full potential.

We want JT to be innovative and productive so we can deliver the best products and services to our customers. Diversity will help us achieve this. Our vision is to be an organisation where everybody is free to be the best they can be, to grow and innovate in a respectful and supportive workplace that enables us to attract and retain a diverse talented workforce.

Workforce diversity

Workplace inclusion

Recruit from a diverse, qualified group of candidates to increase diversity of thinking and perspective

Foster a culture that encourages collaboration, flexibility and fairness to enable all employees to contribute to their full potential and increase retention

We are also committed to the regular monitoring and auditing of diversity within our supply chain, allowing us to identify any Modern Slavery or unethical pay practices.

Carry out benchmarking to inform our initiatives.

Social inclusion

We will encourage talent across all sectors of society, regardless of background, to view all career opportunities within JT to be achievable We will engage with local education authorities to promote technology as a career choice for all.

Through the launch of our remote working programme we will make it easier to grow our diverse workforce, regardless of location.

Sustainability and accountability We will identify and breakdown internal systemic barriers to full inclusion by embedding diversity and inclusion in our policies and practices and equipping leaders with the ability to manage diversity and be accountable for the results We continue to build out and accelerate management and leadership training in these areas.

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JT Progress Report 2020

Top Row; Lauren, Claire and Kristle and Bottom Row; Paul, Lee and Mark JT Mental Health First Aiders

Better Together This year, we’ve been really pleased to have had so many people volunteer to become JT Mental Health First Aiders. And now, with the support of MIND Jersey and MIND Guernsey, we have 26 fully-trained MHFAs from all over the business who are there for anyone who needs them, as well as guiding people to more specialised support, where appropriate.

“Everyone you meet is fighting a little battle you know nothing about. BE KIND.” Lauren De Sousa Business Support Coordinator

“Nothing diminishes anxiety faster than action.”

Mark Le Feuvre Power & Infrastructure Manager

JT Progress Report 2020/21

29 31

Meet our Mental Health First Aiders I’d like to celebrate some of these fantastic colleagues and it’s my honour to introduce you to Mark, Kristle, Paul, Claire, Lee and Lauren.

Mark

Kristle

Paul

You matter. Self care is important. Talk, write or draw what you are feeling and thinking. Getting it out is the first step.

Smile, breathe and go slowly.

Don’t be embarrassed to ask for help.

You would not expect someone with a broken leg to carry on dragging their leg behind them as if nothing is wrong.

Let’s take things one step at a time.

Claire

Lee

Lauren

It’s very rewarding to help someone to put their mind at ease and to see the positive results and effect that has. There’s no weakness in asking for help.

My training has made me much more aware of the signs that somebody may be struggling, and I’m always available for a chat/coffee to make sure my colleagues know they aren’t alone.

We try to hide our feelings, but forget that our eyes speak.

Power & Infrastructure Manager, St.Helier As a manager I firmly believe in leading by example with an open and transparent approach. My own experiences have taught me that’s what really matters to the team.

Nothing diminishes anxiety faster than action.

PA to MD of JT International, St.Helier

Change Manager, St.Helier

Health and Safety Officer, St.Helier

Signalling Engineer, St.Helier

Business Support Coordinator, St. Peter Port It’s hard to get the work/life balance right when working from home, but I firmly believe that looking after yourself is the most important job you can do.

Summary “I’d like to thank all of our Mental Health First Aiders for encouraging colleagues from every area of the business to talk more freely about mental health.

It’s been more important than ever this year, and I’m so proud of everyone for adapting and helping each other through these trying times. It’s moments like this that prove we’re stronger, happier and healthier together”.

Nicola Reeves Group HR Director

Our Stories, Our Communities At the very heart of JT is our united belief that we can make a real difference within the communities we serve, create new jobs for local people, support charities we are passionate about and work hard to protect and improve the environment we call home. It’s the taking part that provides us with the opportunities to connect with people, make change happen and reach our goals.

We continued to meet with business groups, students and local bodies, we presented and spoke at local and world events, accepted awards and raised funds for causes important to us, but we did it virtually.

We used digital technology to remain close to our people, our customers and our peers. What we do best suddenly became essential, we had a key role to play to support our communities beyond just vital reliable connectivity.

We’re proud of the contribution and support we continue to give to our local communities, playing our part in protecting our islands and keeping our people safe. We believe that we all have a responsibility to be inclusive, welcome different perspectives, and work together to create a positive social impact.

Together we can make change happen, together we can make a difference.

Our Performance

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JT Progress Report 2020/21

Performance Review 2020 was a challenging year for JT Group. Parts of the Group understandably suffered due to COVID-19 whilst others proved robust and, in some cases, significantly exceeded expectations.

Despite low volumes in products such as roaming (inbound and outbound), sponsored roaming and travel SIM, JT Group achieved an 8% increase in gross profit vs 2019. This was achieved through increased volumes in products such as broadband and fixed line as working from home became the norm, and within International IoT and FPS (Fraud Prevention Services) which remained remarkably resilient and delivered significant growth.

Hélène Narcy

Chief Financial Officer Having joined JT in July 2019, Hélène was appointed as Chief Financial Officer in April 2020. A graduate of the French business school ESCP, she also holds the French accounting diploma DECF. Hélène brings more than 25 years’ experience, having held various senior Finance positions across different industry types.

She started her career with Gemalto (now part of Thales Group) and more recently spent ten years with UBS. Hélène has worked in different countries including the UAE, Jersey and the USA. Representing Finance in senior management committees, she led a number of Finance transformation projects with a positive impact to the business.

In response to COVID-19 JT put in place immediate measures to support the community, such as doubling the minimum available speed for all Jersey broadband customers from 500Mbps to 1Gbp/s at no extra cost, as well as to enhance cost control, focusing on eliminating waste, improving efficiency, preserving cash and exiting businesses that were higher risk and not expected to drive significant value to the Group in the current economic climate. This led to the sale of the Worldstone Group (presented as a discontinued operation) and the termination of the Voice Trading business.

As a result of these measures to preserve cash and protect the business JT was able to maintain 2020 distributions to the Shareholder of £6m (2019: £7m) through Dividends and Taxes as well as significantly reducing the net borrowings of the Group to £22m compared to £37m in 2019.

Revenue Revenue reduced 13% (£25m) to £170m in 2020 compared to 2019. The ceased Voice Trading business reduced revenues in 2020 by £41m. This was partially offset by strong growth in International particularly within IOT (£10m / 59%), and more moderate growth in the Channel Islands (£2m / 2%) despite COVID-19 consumer initiatives to support the on-island community with free calls, overage and increased bandwidth and reduced roaming revenues in all markets.

Revenue £’m

Gross Profit £’m Gross Profit (£’m)

Revenue (£’m) 300

120

250

100

200

80

150

60

100

40

50

20 0

0 2019 Rest of the World – Voice Trading

2019

2020 Rest of the World – Other

Channel Islands

Rest of the World – Voice Trading

2020 Rest of the World – Other

Channel Islands

37 Gross Profit

Loss from discontinued operations

Despite a reduction in revenue, Gross Profit rose by 8% (£7m) to £99m in 2020 compared to 2019 due to a reduction in low margin Voice Trading products replaced by growth in higher margin products within International and Channel Island markets.

Loss from discontinued operations was £5m (2019: £1m), which reflects the operating loss and loss on disposal of the Worldstone Group.

Operating Profit

The (loss)/profit for the year decreased by £6m to a loss of £4m in 2020 compared to 2019. The increase in gross profit was more than offset by the impairment loss on Voice Trading receivable included in the operating expenses and the loss from discontinued operations.

Operating profit was £6m (2019: £6m). The increase in gross profit year on year was offset by an increase in operating expenses.

Operating expenses increased by 9% (£7m) compared to 2019 mainly driven by an increase in the Group’s impairment loss on receivables of £6m arising from the Voice Trading business.

Income Tax Income tax increased by £2m to £4m (2019: £2m) despite the reduction in profits in 2020. This is due to strong profits generated in the Channel Islands and an impairment of deferred tax assets in one of our International subsidiaries.

Profit from continuing operations Profit from continuing operations was £1m (2019: £2m), primarily reflecting the increase in income tax.

(Loss)/profit for the year

Capital Expenditure Capital expenditure during the year was £18m (2019: £20m), reflecting a reduction in spend of £2m. As part of the Group COVID-19 response, non-essential spend was delayed.

However, investment in core infrastructure including maintenance and improvements for network resilience was maintained.

Cash generated from operations Cash generated from operations increased by 30% to £38m compared to £29m in 2019, mainly due to improved working capital. As a result, the net borrowings of the Group were improved by 41% to £22m (2019: £37m).

Cashflow 2020/ 2019 50 40

Financial Highlights

30 20

Revenue £169.9m 13% vs 2019

10 0 2020

2019

2020

2019

Cash generated from operations

Disposal proceeds

Capital expenses

Net repayments of borrowings

Tax, interest and dividends

Finance leases

Profit before tax £4.7m 17% vs 2019

Net interest

Summary Financial Performance Continued operations

2020 £m

Gross Profit £98.6m 8% vs 2019

2019 £m

Revenue 169.9

194.9

Gross profit 98.6

91.4

Operating profit 6.4

6.5

Profit before taxation 4.7

4.1

Profit from continuing operations 0.9

2.2

Loss from discontinued operations (5.1)

(0.7)

(Loss)/profit for the year (4.1)

1.5

Cash generated from operations £38.0m 30% vs 2019 Net Debt £21.9m 41% vs 2019 Capital expenditure £18.2m 11% vs 2019

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JT Progress Report 2020/21

Board Of Directors

Phil Male

Meriel Lenfestey

Joe Moynihan

Phil Male has been involved in the development of Internet, media and telecoms services in the UK for more than 25 years. He founded one of the first electronic media businesses after graduating with a degree in Computing Science from Imperial College and went on to develop the UK national news agency The Press Associations’ digital media division. From there he joined Internet pioneer Demon in 1992 as CTO, floating that business as telecommunications operator THUS in 1999 whereas COO he saw it grow into a FTSE 100 company. In 2008 he joined the executive board at Cable & Wireless Worldwide and managed their subsequent IPO process. Since 2010 Phil has served on a number of Boards as a Non-Executive Director and Chair including Comic Relief and SmartDCC (the UK smart metering company), actively invests in new technology businesses, and works in an advisory capacity to a number of institutions in the City.

Meriel has experience driving and enabling a shift to customer centricity with forward looking companies across a wide range of business sectors.

After receiving her MA from the Royal College of Art, and after spells working at Microsoft in Seattle and the BBC in London, in 1997 she founded a Londonbased customer experience company and grew it to become the UK market leader and highly respected globally.

Her work has included tactical and strategic engagements with clients embracing digital transformation across many sectors including Financial Services, Consumer Electronics & Software, Telecoms, Media, Retail, Transport, Energy and Public Sector.

She chairs Gemserv in London and is a Non-Executive Director for 2 FTSE 250 infrastructure funds as well as Aurigny Air Services in Guernsey. She holds voluntary Board roles with the IoD and Arts for Impact.

Joe Moynihan is an experienced international financial services executive with senior level commercial and public sector experience. He has held a wide range of board level positions in Jersey and International businesses during a career that has spanned over 30 years.

This includes being President of the Jersey Bankers Association, Chief Officer/Director of Financial Services for the States of Jersey, and consultant to a number of financial services projects in Jersey and Internationally. Joe has an MBA from the CASS Business School, University of London, is a fellow of the Association of Chartered Certified Accountants and a graduate of the Irish Institute of Bankers.

Chairman

Non-Executive Director, Senior Independent Director

Non-Executive Director, Chairman of the Remuneration Committee

37

Mark Shuttleworth

Non-Executive Director (Appointed 1 September 2020) Mark, a Chartered Accountant and certified INSEAD Director, has been a Non-Executive Director and Chair of the Audit and Risk Committee of Countrywide Plc and was a founding Board member and Non-Executive Director of the Middle East Investor Relations Society. Mark has extensive public limited company experience within the International TMT sector including telecommunications and technology manufacturing with scale.

He finished his executive career as CFO of FTSE 250 company Pace Plc. Prior to that Mark was the CFO of Emirates Integrated Telecommunication Company PJSC (“du”), based in the UAE, and the former Group CFO of Qatar Telecom plc (“Qtel” now known as “Ooredo”).

Angus Flett

Non-Executive Director (Appointed 1 December 2020) Angus has been the CEO of Smart Data Communications Company (DCC) since 2017. He has an extensive telecoms background, including roles in product management, marketing and service operations. As a Managing Director at BT, he was instrumental in the company achieving a world number one ranking for agent technical expertise and number two for agent responsiveness.

He was also responsible for BT’s ISPco division, the fifth biggest white-label

Internet Service Provider in the UK, running end-to-end services for EE, Vodafone, Post Office and SSE. As Senior Vice President of Vodafone’s Global Enterprise Products, Angus developed the company’s enterprise connectivity strategy and launching its global connectivity portfolio targeting SME and corporates, achieving revenue growth of 6% above market rates.

Angus has a Masters degree in Business Management from the Henley Management College at the University of Reading and is a member of the Chartered Institute of Marketing.

Graeme Millar

Chief Executive Officer Appointed CEO of JT in 2010, Graeme led JT’s rollout of a full fibre network resulting in Jersey today enjoying the second fastest broadband speeds in the world.* His tenure has also seen the development of JT’s international business which resulted in JT being shortlisted in the ‘Internet of Things’ (IoT) category in the 2020 Connected Britain Awards. A Cambridge University Science and Engineering graduate, previous to JT Graeme held senior roles with leading global technology businesses such as Vodafone, Motorola and MTS whilst living and working across countries as diverse as the USA, Russia, Hungary and the Netherlands. * https://www.cable.co.uk/broadband/ speed/worldwide-speed-league/

Hélène Narcy

Chief Financial Officer (Appointed 27 April 2020) Having joined JT in July 2019, Hélène was appointed as Chief Financial Officer in April 2020. A graduate of the French business school ESCP, she also holds the French accounting diploma DECF. Hélène brings more than 25 years’ experience, having held various senior Finance positions across different industry types. She started her career with Gemalto (now part of Thales Group) and more recently spent ten years with UBS. Hélène has worked in different countries including the UAE, Jersey and the USA. Representing Finance in senior management committees, she led a number of Finance transformation projects with a positive impact to the business.

Sean Collins

Non-Executive Director, Chairman of Audit and Risk Committee (Retired 26 April 2021)

John Kent

Chief Financial Officer (Retired 27 April 2020)

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JT Progress Report 2020/21

Board Effectiveness Annual Report Statement This year the Board undertook an external effectiveness review as part of our commitment to the 2018 UK Corporate Governance Code. The review was undertaken in May 2020 with questionnaires and interviews, independent observations made at Board meetings, the Board materials, and ongoing evaluation of Hogan personality assessments for all Board members both individually and collectively as a Board. It was followed up with further interviews and discussions in September 2020. As well as the Board members themselves, it also involved the Group Company Secretary and the Executive Committee. To ensure consistency with the 2019 process, it was based on the Institute of Directors Competency Framework and the process was independently run by Darren Briggs from Flametree Communication Ltd.

The JT Board and its committees were found to be effective across all categories. The range of expertise that has been enhanced through the appointment of a new Chief Financial Officer, Non-Executive Directors and a new Company Secretary, brings a healthy challenge to Board discussions and drives confident decision making; the Board continues to pay sufficient attention to strategic issues around changing technologies, customer expectations, competitive landscape, political and regulatory developments, resource availability and value generation; and there have been significant improvements in governance and process in recent years. Together, with the ongoing focus on improving Board effectiveness by the current Chair in response to the 2018 UK Corporate Governance Code, these have proven to be a good platform on which to build a robust and effective Board culture.

However, the Board recognises the need to constantly monitor and improve, in particular, the following areas for attention were identified, which the Board began addressing during the year and will continue through 2021:

Continuing improvements in Board procedure and materials

The range of knowledge, skills and behaviours must be maintained through Executive succession and Non-Executive rotation.

There continues to be room for further improvement in Board processes and materials.

Communication in general and in particular ensuring a common language.

Increased frequency of Board members to connect and meet outside of the normal Board timetable.

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The Board has implemented the following actions:

Nominations Committee development of a detailed rolling Board succession plan with attention to specific Hogan profiling and the Institute of Directors competency framework for Directors as part of the selection process.

Adding the factors listed In S.172(1) of the Companies Act 2006 to the standard Board paper cover sheet so that the Board can make reference to this when considering the relevant Board paper/making decisions.

Personal development opportunities around both knowledge and skills based on Hogan assessments and individual feedback from this study.

Deepening relationships between Executive and Non-Executive members to further build trust and respect through externally facilitated sessions.

An education programme for all Non-Executive Directors to have a deeper understanding of JT’s technology, products and services.

Continual improvements in Board procedure and materials.

An improved induction process for new Board members customised to their role on the Board and based on their personal Hogan assessments strategy. This includes creating a more formal standardised framework for the onboarding and induction of new Board members.

The Board this year will welcome a new Chair and will undertake the selection of new NonExecutive Directors in accordance with the detailed Board succession plan. These processes have been significantly improved as a result of this year’s Board Effectiveness Review.

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JT Progress Report 2020/21

Corporate Governance Director independence

Compliance with the UK Corporate Governance Code (the ‘Code’).

The Company adheres to the principles of good corporate governance and best practice set out in the Code and, in particular, has in place a sound system of internal controls to safeguard its shareholder’s investment and its assets.

Directors and the Board The Board During the financial year the Board consisted of eight Directors, two of whom are Executive Directors and six of whom are Non-Executive Directors. The Board has a schedule of regular meetings, normally between six and eight per year, with any additional meetings convened as and when required. The Board is collectively responsible for the long-term success of the Company. This is achieved by setting the overall operating strategy, approving detailed business plans and overseeing delivery of objectives by continually monitoring performance against those plans. The Board establishes the culture, standards and values of the Company. The Board oversees the management of risk, monitors financial performance and reporting and ensures that appropriate and effective succession planning and remuneration policies are in place.

Whilst maintaining oversight at regular meetings of the Board, the day to day operation of the Company has been delegated to the Executive Directors. The Board is supplied with a sufficient level of regular, detailed and timely management information to allow it to discharge its functions efficiently.

Performance evaluation In order to ensure that the Board continues to operate effectively, the Board and its Committees carry out an assessment of performance across key areas. The results of the performance assessments and appraisals are fed back to the Board as a whole (as appropriate) and action taken accordingly.

Other significant commitments Under the terms of engagement for each Non-Executive Director, an indication of required hours is agreed that should enable the Non-Executive Directors to discharge their duties to the Company. The level of commitment to the Company has not been impinged by other significant commitments for any of the Non-Executive Directors.

Reappointment

Meetings and Committee membership

The Company has adopted a policy of requiring all Directors to seek re-election on an annual basis in line with the Code.

Directors appointed to fill a casual vacancy must seek formal appointment by the shareholders at the next Annual General Meeting (“AGM”).

During the year, the Board met 13 times. Details of attendance at Board meetings are as follows:

Number of Board meetings in 2020

The Board considers all of the Non-Executive Directors to be independent in character and judgement. In determining independence, the Board considers the specific circumstances of each Director. The Board has concluded that Sean Collins, Joe Moynihan, Mark Shuttleworth, Angus Flett and Meriel Lenfestey shall be deemed independent, with Meriel Lenfestey adopting the role of Senior Independent Director. Phil Male, as Chairman of the Company for the year ended 31 December 2020, was considered independent on appointment and, in accordance with the Code, is not subject to the independence test thereafter.

13

Sean Collins (retired 26 April 2021)

12

Joe Moynihan

12

Hélène Narcy (appointed as CFO on 27 April 2020 and as statutory director on 14 May 2020)

13

Meriel Lenfestey

13

Phil Male

13

Graeme Millar

13

Angus Flett (appointed 1 December 2020)

2

Mark Shuttleworth (appointed 1 September 2020)

7

John Kent (retired as CFO on 27 April 2020 and as statutory director on 14 May 2020)

6

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Relations with the shareholder

Audit Committee

While the Company is wholly owned by the States of Jersey, under the terms of Article 32(6) of the Telecommunications (Jersey) Law 2002, the Minister for Treasury & Resources (the “Minister”) is charged as its representative in matters related to its shareholding in the Company. Limitations on the powers of the Minister, which relate principally to share ownership matters, are set out in that same Article. In order to ensure an appropriate accountability framework, a Memorandum of Understanding exists between the Company and the Minister, and that Memorandum of Understanding recognises the obligation that the Directors have in regard to cooperating at all times in the best interests of the Company.

During the year ended 31 December 2020, the Audit Committee comprised Sean Collins (Chairman), Joe Moynihan and Mark Shuttleworth (with effect from 10 September 2020).

Internal Controls The Board is responsible for ensuring that there are effective systems of internal control in place to reduce the risk of misstatement or loss and to ensure that business objectives are met. These systems are designed to manage and mitigate (rather than to eliminate) the risk of failure to achieve business objectives and can only provide reasonable and not absolute assurance against material misstatement or loss.

The Company has developed and adopted corporate and operational risk registers detailing and grading the significant risks faced by the Company. Alongside the register is a process through which the significant risks faced by the business are identified and evaluated on a regular basis and the controls operating over those risks are assessed to ensure that they are adequate.

The process of risk assessment and reviewing the effectiveness of the systems of internal control is regularly reviewed by the Audit Committee, accords with Turnbull guidance and has been in place for the whole of the year, up to and including the date on which the financial statements were approved.

Controls adopted by the Board (or its Committees) to ensure the effectiveness of the systems of internal control include the following:

The review of the corporate and operational risk and control registers maintained and updated by the Company and of the status of any actions arising from their regular review.

The receipt of confirmation from Senior Management of the proper operation of controls throughout the period of the review.

The review and approval during the year of the schedule of matters specifically reserved for its attention. The review of reports received from the Audit Committee concerning the findings of the external auditors on the financial statements of the Company and the systems of internal control.

The auditors, KPMG LLP, and the Executive Directors also attend the meetings by invitation.

There were five meetings of the Audit Committee during 2020, with full attendance at all of those meetings.

The terms of reference of the Audit Committee require it to meet at least twice per annum. Additional meetings may be called where deemed necessary. The Committee is charged by the Board with the following main responsibilities:

To monitor the integrity of the financial statements of the Company and any formal announcements relating to the Company’s financial performance.

To provide advice, when requested by the Board, on whether the annual report, taken as a whole, is fair, balanced and understandable and provides the information necessary for the Shareholder to assess performance, the business model and strategy.

To ensure that arrangements are in place for the proportionate and independent investigation of concerns raised confidentially by whistle-blowers about possible improprieties in matters of financial reporting or any other matters.

To review and monitor the adequacy, operation and effectiveness of the Company’s internal financial and other controls and make recommendations for improvement where necessary.

To oversee the external audit process and manage the relationship with the external auditors.

To make recommendations to the Board as to the re-election and remuneration of the auditors at the Annual General Meeting based upon its assessment of the performance of the auditors and giving due regard to their continued independence and any other regulatory or professional requirements.

During the year ended 31 December 2020 the Audit Committee formed the view that there is a continuing need for an internal audit function and has assigned accountability for this to a senior accountant reporting to the CFO.

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JT Progress Report 2020/21

Review of Financial Statements

Remuneration Committee

To enable the Audit Committee to discharge its responsibilities effectively in respect of the financial statements, a number of processes are in place.

During the year ended 31 December 2020, the Remuneration Committee comprised Joe Moynihan (Chairman), Sean Collins, Meriel Lenfestey, Mark Shuttleworth (with effect from 1 September 2020), Angus Flett (with effect from 1 December 2020) and Phil Male. The Executive Directors may also attend the meeting by invitation. No director is allowed to be party to discussions regarding, or play any role in, the determination of their own remuneration. There were two formal meetings of the Remuneration Committee during 2020, with full attendance at each of those meetings. The terms of reference of the Remuneration Committee allow it to meet as and when necessary to:

The Audit Committee is briefed by the Chief Financial Officer in advance of the year end on the significant issues pertaining to the financial statements and how they will be dealt with. These issues are generally focused on the areas of subjectivity in the financial statements, changes in accounting or disclosure requirements and the accounting or disclosure implications of one-off events occurring in the year.

Where necessary, the Audit Committee considers evidence and independent third-party advice on the key matters for consideration. At the year end, the Audit Committee reviews the financial statements and related announcements and considers them in the context of the significant issues identified, the suitability of any key assumptions and the extent that they have been disclosed. The whole process is completed in consultation with the auditors, whose view is sought by the Audit Committee. The Audit Committee also consider, based on their knowledge of the business and issues arising, whether they can advise the Board that the annual report, taken as a whole, is fair, balanced and understandable and provides the information necessary for the Shareholder to assess the Company’s position and performance, the business model and strategy.

Review and determine the level of remuneration of Executive Directors.

Review and determine the level of remuneration of the Senior Management Team.

Review periodically the terms and conditions of employment of the Executive Directors and Senior Management Team.

Make recommendations to the Board on the Company’s overall framework of salaried staff remuneration and costs.

Auditor appointment and additional services The performance and effectiveness of the external auditors is monitored continually and formally considered by the Audit Committee before a recommendation is made to the Board regarding their reappointment. Length of service of the incumbent audit firm, effectiveness of the audit process, the independence and objectivity of the team, the depth and breadth of the audit approach, the level of fees and the quality of the service provided are all taken into account.

The current auditor is KPMG LLP who replaced Deloitte LLP following a competitive tender for audit services for the year ending 31 December 2017 carried out in 2016, following which the Audit Committee’s recommendation that the Board appoint KPMG LLP as the Company’s auditors was approved.

The Audit Committee considers the impact of the provision of any non-audit services by the external auditor on the objectivity and independence of the audit. The consideration has regard to the nature of the non-audit work, size of the fee relative to any audit, any potential involvement of the audit team in the work and the longer-term effect of the non-audit services on the relationship with the audit firm, including an assessment of their continuing objectivity and independence.

Review and make recommendations to the Board concerning the remuneration of the Chairman.

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Nomination Committee During the financial year ended 31 December 2020, the Nomination Committee comprised Phil Male (Chairman), Sean Collins, Meriel Lenfestey, Mark Shuttleworth (with effect from 1 September 2020), Angus Flett (with effect from 1 December 2020) and Graeme Millar. Executive Directors may also attend the meeting by invitation.

There were five formal meetings of the Nomination Committee during 2020, with full attendance at those meetings.

The Nomination Committee is primarily responsible for the selection and appointment of the Company’s Executive and Non-Executive Directors, as and when required.

The other duties of the Nomination Committee include: Making recommendations to the Board as to the annual re-election of Directors under the provisions of the Code whilst giving due regard to their performance and ability to continue to contribute to the Board in light of the knowledge, skills and experience required.

Reviewing and making recommendations to the Board as to the succession planning for Executive and Non-Executive Directors.

Regularly reviewing the structure, size and composition, including the balance of skills and attributes required of the Board, compared to its current position and making recommendations to the Board with regard to any changes.

Keeping under review the leadership needs of the organisation, both Executive and Non-Executive, including succession plans, with a view to ensuring the continued ability of the organisation to operate effectively.

When selecting candidates for potential appointment as a Non-Executive Director, the Nomination Committee evaluates the needs of the Company and identifies the necessary skills and experience required by candidates for consideration.

The Nomination Committee makes recommendations to the Board taking into account the performance of the candidates at interview, their skills and experience and their ability to meet the specific needs of the Company. Consideration is given to the use of external recruitment consultants and open advertising in the recruitment process. However, this is weighed against the cost of doing so and the specialist needs of the Company as a Jersey based telecom provider.

It is the policy of the Board to populate itself with Directors who have a diverse range of skills, attributes and backgrounds, so that collectively the Board is appropriately resourced to discharge its duties effectively and meet the changing needs of the business. A wide range of factors are considered in determining the appropriate composition of the Board including but not limited to technical expertise, local market knowledge and experience, independence, length of service on the Board and diversity.

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Stay in Touch JTsocial JTHelp JT Group Limited JTsocial JTHelp JT_Business JTsocial PO Box 53, No. 1 The Forum, Grenville Street, St Helier, Jersey, JE4 8PB

www.jtglobal.com Facts and figures correct at time of publication. April 2021.