EX-2 3 m33430orexv2.htm SUPPLEMENTARY FINANCIAL INFORMATION - THIRD QUARTER

exv2

EXHIBIT 2

BCE Consolidated ⁽¹⁾
Consolidated Operational Data

		Q3					Q3												YTD					YTD
($ millions, except per share amounts)		2006					2005				$ change				% change				2006					2005				$ change				% change
Operating revenues			4,422					4,408				14				0.3	%			13,166					13,066				100				0.8	%
Operating expenses			(2,582	)				(2,591	)			9				0.3	%			(7,610	)				(7,571	)			(39	)			(0.5	%)
EBITDA (2)			1,840					1,817				23				1.3	%			5,556					5,495				61				1.1	%
EBITDA margin (3)			41.6	%				41.2	%						0.4 pts					42.2	%				42.1	%						0.1 pts
Amortization expense			(786	)				(774	)			(12	)			(1.6	%)			(2,332	)				(2,285	)			(47	)			(2.1	%)
Net benefit plans cost			(118	)				(103	)			(15	)			(14.6	%)			(388	)				(300	)			(88	)			(29.3	%)
Restructuring and other items			(126	)				(31	)			(95	)			n.m.				(264	)				(31	)			(233	)			n.m.
Operating income			810					909				(99	)			(10.9	%)			2,572					2,879				(307	)			(10.7	%)
Other (expense) income			(113	)				1				(114	)			n.m.				(149	)				31				(180	)			n.m.
Interest expense			(247	)				(238	)			(9	)			(3.8	%)			(713	)				(710	)			(3	)			(0.4	%)
Pre-tax earnings from continuing operations			450					672				(222	)			(33.0	%)			1,710					2,200				(490	)			(22.3	%)
Income taxes			(85	)				(179	)			94				52.5	%			(412	)				(607	)			195				32.1	%
Non-controlling interest			(41	)				(49	)			8				16.3	%			(124	)				(149	)			25				16.8	%
Earnings from continuing operations			324					444				(120	)			(27.0	%)			1,174					1,444				(270	)			(18.7	%)
Discontinued operations			(22	)				15				(37	)			n.m.				116					87				29				33.3	%
Net earnings			302					459				(157	)			(34.2	%)			1,290					1,531				(241	)			(15.7	%)
Dividends on preferred shares			(17	)				(18	)			1				5.6	%			(52	)				(53	)			1				1.9	%
Net earnings applicable to common shares			285					441				(156	)			(35.4	%)			1,238					1,478				(240	)			(16.2	%)
Net earnings per common share — basic
Continuing operations		$	0.39				$	0.46			$	(0.07	)			(15.2	%)		$	1.28				$	1.51			$	(0.23	)			(15.2	%)
Discontinued operations		$	(0.03	)			$	0.02			$	(0.05	)			n.m.			$	0.13				$	0.09			$	0.04				44.4	%
Net earnings		$	0.36				$	0.48			$	(0.12	)			(25.0	%)		$	1.41				$	1.60			$	(0.19	)			(11.9	%)
Net earnings per common share — diluted
Continuing operations		$	0.39				$	0.46			$	(0.07	)			(15.2	%)		$	1.28				$	1.51			$	(0.23	)			(15.2	%)
Discontinued operations		$	(0.03	)			$	0.02			$	(0.05	)			n.m.			$	0.13				$	0.09			$	0.04				44.4	%
Net earnings		$	0.36				$	0.48			$	(0.12	)			(25.0	%)		$	1.41				$	1.60			$	(0.19	)			(11.9	%)
Dividends per common share		$	0.33				$	0.33			$	—				0.0	%		$	0.99				$	0.99			$	—				0.0	%
Average number of common shares outstanding — basic (millions)			818.8					927.0												878.2					926.6
The following items are included in net earnings:
Net gains (losses) on investments
Continuing operations			8					—												9					33
Discontinued operations			(11	)				—												104					(6	)
Restructuring and other items			(71	)				(21	)											(156	)				(21	)
Cost incurred to form the Bell Aliant Regional Communication Income Fund (Bell Aliant)			(28	)				—												(42	)				—
Total			(102	)				(21	)											(85	)				6
Impact on net earnings per share		$	(0.12	)			$	(0.02	)										$	(0.10	)			$	0.01
EPS before restructuring and other items, net gains on investments, and costs incurred to form Bell Aliant (2)		$	0.48				$	0.50			$	(0.02	)			(4.0	%)		$	1.51				$	1.59			$	(0.08	)			(5.0	%)

n.m. : not meaningful

BCE Inc. Supplementary Financial Information — Third Quarter 2006 Page 2

BCE Consolidated ⁽¹⁾
Consolidated Operational Data — Historical Trend

		YTD																Total
($ millions, except per share amounts)		2006				Q3 06				Q2 06				Q1 06				2005				Q4 05				Q3 05				Q2 05				Q1 05
Operating revenues			13,166				4,422				4,388				4,356				17,605				4,539				4,408				4,368				4,290
Operating expenses			(7,610	)			(2,582	)			(2,513	)			(2,515	)			(10,374	)			(2,803	)			(2,591	)			(2,511	)			(2,469	)
EBITDA (2)			5,556				1,840				1,875				1,841				7,231				1,736				1,817				1,857				1,821
EBITDA margin (3)			42.2	%			41.6	%			42.7	%			42.3	%			41.1	%			38.2	%			41.2	%			42.5	%			42.4	%
Amortization expense			(2,332	)			(786	)			(790	)			(756	)			(3,061	)			(776	)			(774	)			(763	)			(748	)
Net benefit plans cost			(388	)			(118	)			(134	)			(136	)			(359	)			(59	)			(103	)			(99	)			(98	)
Restructuring and other items			(264	)			(126	)			(50	)			(88	)			(55	)			(24	)			(31	)			(5	)			5
Operating income			2,572				810				901				861				3,756				877				909				990				980
Other (expense) income			(149	)			(113	)			(32	)			(4	)			27				(4	)			1				24				6
Interest expense			(713	)			(247	)			(231	)			(235	)			(949	)			(239	)			(238	)			(236	)			(236	)
Pre-tax earnings from continuing operations			1,710				450				638				622				2,834				634				672				778				750
Income taxes			(412	)			(85	)			(155	)			(172	)			(802	)			(195	)			(179	)			(185	)			(243	)
Non-controlling interest			(124	)			(41	)			(39	)			(44	)			(201	)			(52	)			(49	)			(52	)			(48	)
Earnings from continuing operations			1,174				324				444				406				1,831				387				444				541				459
Discontinued operations			116				(22	)			50				88				130				43				15				40				32
Net earnings			1,290				302				494				494				1,961				430				459				581				491
Dividends on preferred shares			(52	)			(17	)			(18	)			(17	)			(70	)			(17	)			(18	)			(18	)			(17	)
Net earnings applicable to common shares			1,238				285				476				477				1,891				413				441				563				474
Net earnings per common share — basic
Continuing operations		$	1.28			$	0.39			$	0.47			$	0.42			$	1.90			$	0.39			$	0.46			$	0.57			$	0.48
Discontinued operations		$	0.13			$	(0.03	)		$	0.06			$	0.10			$	0.14			$	0.05			$	0.02			$	0.04			$	0.03
Net earnings		$	1.41			$	0.36			$	0.53			$	0.52			$	2.04			$	0.44			$	0.48			$	0.61			$	0.51
Net earnings per common share — diluted
Continuing operations		$	1.28			$	0.39			$	0.47			$	0.42			$	1.90			$	0.39			$	0.46			$	0.57			$	0.48
Discontinued operations		$	0.13			$	(0.03	)		$	0.06			$	0.10			$	0.14			$	0.05			$	0.02			$	0.04			$	0.03
Net earnings		$	1.41			$	0.36			$	0.53			$	0.52			$	2.04			$	0.44			$	0.48			$	0.61			$	0.51
Dividends per common share		$	0.99			$	0.33			$	0.33			$	0.33			$	1.32			$	0.33			$	0.33			$	0.33			$	0.33
Average number of common shares outstanding — basic (millions)			878.2				818.8				896.4				920.5				926.8				927.3				927.0				926.6				926.2
The following items are included in net earnings:
Net gains (losses) on investments
Continuing operations			9				8				—				1				33				—				—				33				—
Discontinued operations			104				(11	)			35				80				(6	)			—				—				(5	)			(1	)
Restructuring and other items			(156	)			(71	)			(27	)			(58	)			(37	)			(16	)			(21	)			(3	)			3
Cost incurred to form Bell Aliant			(42	)			(28	)			(14	)			—				—				—				—				—				—
Total			(85	)			(102	)			(6	)			23				(10	)			(16	)			(21	)			25				2
Impact on net earnings per share		$	(0.10	)		$	(0.12	)		$	(0.01	)		$	0.03			$	(0.01	)		$	(0.02	)		$	(0.02	)		$	0.03			$	—
EPS before restructuring and other items, net gains on investments and costs incurred to form Bell Aliant(2)		$	1.51			$	0.48			$	0.54			$	0.49			$	2.05			$	0.46			$	0.50			$	0.58			$	0.51

BCE Inc. Supplementary Financial Information — Third Quarter 2006 Page 2

BCE Consolidated ⁽¹⁾
Segmented Data

		Q3					Q3												YTD					YTD
($ millions, except where otherwise indicated)		2006					2005				$ change				% change				2006					2005				$ change				% change
Revenues
Residential			1,799					1,770				29				1.6	%			5,288					5,229				59				1.1	%
Business			1,495					1,473				22				1.5	%			4,466					4,375				91				2.1	%
Bell Aliant			841					826				15				1.8	%			2,506					2,483				23				0.9	%
Other Bell Canada			393					436				(43	)			(9.9	%)			1,190					1,229				(39	)			(3.2	%)
Inter-segment eliminations			(189	)				(183	)			(6	)			(3.3	%)			(553	)				(533	)			(20	)			(3.8	%)
Total Bell Canada			4,339					4,322				17				0.4	%			12,897					12,783				114				0.9	%
Other BCE
Telesat			113					112				1				0.9	%			351					357				(6	)			(1.7	%)
Other			12					15				(3	)			(20.0	%)			42					50				(8	)			(16.0	%)
Total Other BCE			125					127				(2	)			(1.6	%)			393					407				(14	)			(3.4	%)
Inter-segment eliminations			(42	)				(41	)			(1	)			(2.4	%)			(124	)				(124	)			—				0.0	%
Total revenues			4,422					4,408				14				0.3	%			13,166					13,066				100				0.8	%
Operating income
Residential			400					430				(30	)			(7.0	%)			1,307					1,379				(72	)			(5.2	%)
Business			223					203				20				9.9	%			576					641				(65	)			(10.1	%)
Bell Aliant			204					194				10				5.2	%			572					573				(1	)			(0.2	%)
Other Bell Canada			—					78				(78	)			n.m.				116					275				(159	)			(57.8	%)
Total Bell Canada			827					905				(78	)			(8.6	%)			2,571					2,868				(297	)			(10.4	%)
Other BCE
Telesat			32					43				(11	)			(25.6	%)			110					123				(13	)			(10.6	%)
Other			(49	)				(39	)			(10	)			(25.6	%)			(109	)				(112	)			3				2.7	%
Total Other BCE			(17	)				4				(21	)			n.m.				1					11				(10	)			(90.9	%)
Total operating income			810					909				(99	)			(10.9	%)			2,572					2,879				(307	)			(10.7	%)
Capital expenditures (4)
Residential			316					405				89				22.0	%			882					1,095				213				19.5	%
Business			202					245				43				17.6	%			514					670				156				23.3	%
Bell Aliant			131					143				12				8.4	%			386					395				9				2.3	%
Other Bell Canada			66					80				14				17.5	%			238					226				(12	)			(5.3	%)
Total Bell Canada			715					873				158				18.1	%			2,020					2,386				366				15.3	%
Other BCE
Telesat			44					91				47				51.6	%			173					198				25				12.6	%
Other			1					(6	)			(7	)			n.m.				5					(19	)			(24	)			n.m.
Total capital expenditures			760					958				198				20.7	%			2,198					2,565				367				14.3	%

n.m. : not meaningful

BCE Inc. Supplementary Financial Information — Third Quarter 2006 Page 3

BCE Consolidated ⁽¹⁾
Segmented Data — Historical Trend

		YTD																Total
($ millions, except where otherwise indicated)		2006				Q3 06				Q2 06				Q1 06				2005				Q4 05				Q3 05				Q2 05				Q1 05
Revenues
Residential			5,288				1,799				1,758				1,731				7,016				1,787				1,770				1,750				1,709
Business			4,466				1,495				1,496				1,475				5,966				1,591				1,473				1,459				1,443
Bell Aliant			2,506				841				829				836				3,320				837				826				820				837
Other Bell Canada			1,190				393				392				405				1,651				422				436				397				396
Inter-segment eliminations			(553	)			(189	)			(183	)			(181	)			(719	)			(186	)			(183	)			(174	)			(176	)
Total Bell Canada			12,897				4,339				4,292				4,266				17,234				4,451				4,322				4,252				4,209
Other BCE
Telesat			351				113				120				118				475				118				112				137				108
Other			42				12				18				12				63				13				15				23				12
Total Other BCE			393				125				138				130				538				131				127				160				120
Inter-segment eliminations			(124	)			(42	)			(42	)			(40	)			(167	)			(43	)			(41	)			(44	)			(39	)
Total revenues			13,166				4,422				4,388				4,356				17,605				4,539				4,408				4,368				4,290
Operating income
Residential			1,307				400				452				455				1,772				393				430				472				477
Business			576				223				174				179				863				222				203				206				232
Bell Aliant			572				204				188				180				768				195				194				189				190
Other Bell Canada			116				—				80				36				349				74				78				114				83
Total Bell Canada			2,571				827				894				850				3,752				884				905				981				982
Other BCE
Telesat			110				32				39				39				157				34				43				43				37
Other			(109	)			(49	)			(32	)			(28	)			(153	)			(41	)			(39	)			(34	)			(39	)
Total Other BCE			1				(17	)			7				11				4				(7	)			4				9				(2	)
Total operating income			2,572				810				901				861				3,756				877				909				990				980
Capital expenditures (4)
Residential			882				316				329				237				1,417				322				405				374				316
Business			514				202				185				127				867				197				245				234				191
Bell Aliant			386				131				143				112				525				130				143				137				115
Other Bell Canada			238				66				110				62				313				87				80				102				44
Total Bell Canada			2,020				715				767				538				3,122				736				873				847				666
Other BCE
Telesat			173				44				86				43				260				62				91				53				54
Other			5				1				4				—				(22	)			(3	)			(6	)			(10	)			(3	)
Total capital expenditures			2,198				760				857				581				3,360				795				958				890				717

BCE Inc. Supplementary Financial Information — Third Quarter 2006 Page 4

BCE Consolidated ⁽¹⁾
Consolidated Balance Sheet Data

		September 30				June 30				March 31				December 31
($ millions, except where otherwise indicated)		2006				2006				2006				2005
ASSETS
Current assets
Cash and cash equivalents			2,293				135				879				349
Accounts receivable			1,838				1,639				1,421				1,399
Other current assets			832				1,049				1,067				1,043
Current assets of discontinued operations			—				464				434				892
Total current assets			4,963				3,287				3,801				3,683
Capital assets			21,892				21,882				21,777				21,777
Other long-term assets			2,907				2,326				2,326				2,462
Indefinite-life intangible assets			2,903				2,903				2,899				2,899
Goodwill			5,484				6,001				5,982				5,966
Non-current assets of discontinued operations			44				2,981				3,106				3,851
Total assets			38,193				39,380				39,891				40,638
LIABILITIES
Current liabilities
Accounts payable and accrued liabilities			3,045				2,896				2,783				3,085
Interest payable			231				167				263				170
Dividends payable			310				313				322				343
Debt due within one year			1,411				1,308				1,205				1,197
Current liabilities of discontinued operations			1				286				371				828
Total current liabilities			4,998				4,970				4,944				5,623
Long-term debt			13,063				11,568				11,593				11,819
Other long-term liabilities			4,839				4,827				4,916				4,963
Non-current liabilities of discontinued operations			—				1,423				1,442				614
Total liabilities			22,900				22,788				22,895				23,019
Non-controlling interest			2,222				2,453				2,633				2,898
SHAREHOLDERS’ EQUITY
Preferred shares			1,670				1,670				1,670				1,670
Common shareholders’ equity
Common shares			13,555				16,159				16,467				16,806
Treasury stock			—				—				(62	)			—
Contributed surplus			2,574				1,019				1,036				1,081
Deficit			(4,726	)			(4,706	)			(4,747	)			(4,763	)
Currency translation adjustment			(2	)			(3	)			(1	)			(73	)
Total common shareholders’ equity			11,401				12,469				12,693				13,051
Total shareholders’ equity			13,071				14,139				14,363				14,721
Total liabilities and shareholders’ equity			38,193				39,380				39,891				40,638
Number of common shares outstanding (A) (B)			812.0				891.4				906.2				927.3
Total Net Debt			12,181				12,741				11,919				12,667
Total Capitalization			27,474				29,333				28,915				30,286
Key ratios
Net debt : Total Capitalization			44.3	%			43.4	%			41.2	%			41.8	%
Net debt : Trailing 12 month EBITDA			1.67				1.75				1.64				1.75
EBITDA : Interest (trailing 12 month)			7.66				7.71				7.65				7.62

(A)		Excludes 2.2 million of treasury stock in the March 31, 2006 balance
(B)		As a result of the BCE Inc. Plan of Arrangement on July 10, 2006, the total number of BCE Inc. common shares issued and outstanding on that date was 815.6 million.

BCE Inc. Supplementary Financial Information — Third Quarter 2006 Page 5

Proportionate Net Debt, Preferreds and EBITDA

BCE Consolidated Net debt and preferreds

		BELL CANADA																				BCE
At September 30, 2006														Inter-								Bell Canada												BCE
($ millions, except where otherwise indicated)		Bell Canada (excl. Bell Aliant)				Bell Aliant				Bell Canada Consolidated				company eliminations				Total Bell Canada				(excl. Bell Aliant) less elims.				Bell Aliant				Telesat				Corporate & Other				BCE Consolidated
Cash and cash equivalents			(1,965	)			(300	)			(2,265	)							(2,265	)			(1,965	)			(300	)			(22	)			(6	)			(2,293	)
Debt due within one year			2,052				162				2,214				(1,305	)			909				747				162				8				494				1,411
Long-term debt			8,588				2,799				11,387				(293	)			11,094				8,295				2,799				188				1,781				13,063
Net debt A B			8,675				2,661				11,336				(1,598	)			9,738				7,077				2,661				174				2,269				12,181
Preferred shares — Bell Canada (8)			1,100								1,100								1,100				1,100																1,100
Preferred Shares — Telesat (8)																															50								50
Perpetual Preferred shares — BCE																																			1,670				1,670
Net debt and preferreds			9,775				2,661				12,436				(1,598	)			10,838				8,177				2,661				224				3,939				15,001

Proportionate net debt and preferreds, Trailing EBITDA

		%				Proportionate
For the quarter ended September 30, 2006		owned				net debt and				TOTAL EBITDA																				PROPORTIONATE EBITDA
($ millions, except where otherwise indicated)		by BCE				preferreds				Q3 06				Q2 06				Q1 06				Q4 05				Trailing				Q3 06				Q2 06				Q1 06				Q4 05				Trailing
Bell Canada (excl. Bell Aliant) less elims			100	%			8,177				1,459				1,486				1,458				1,354				5,757				1,459				1,486				1,458				1,354				5,757
Bell Aliant			44.7	%			1,189				376				371				360				375				1,482				168				166				161				168				663
Total Bell Canada Consolidated							9,366				1,835				1,857				1,818				1,729				7,239				1,627				1,652				1,619				1,522				6,420
Other BCE
Telesat			100	%			224				62				70				70				66				268				62				70				70				66				268
Corporate and other B			100	%			3,939				(33	)			(28	)			(26	)			(37	)			(124	)			(33	)			(28	)			(26	)			(37	)			(124	)
Total Other BCE							4,163				29				42				44				29				144				29				42				44				29				144
Inter-segment eliminations							—				(24	)			(24	)			(21	)			(22	)			(91	)			(24	)			(24	)			(21	)			(22	)			(91	)
Total							13,529				1,840				1,875				1,841				1,736				7,292				1,632				1,670				1,642				1,529				6,473

A		Includes 100% of subsidiary debt
B		BCE Corporate & Other total net debt includes a PPA (7) fair value increment of $90 million

BCE Inc. Supplementary Financial Information — Third Quarter 2006 Page 6

BCE Consolidated
Consolidated Cash Flow Data

		Q3					Q3								YTD					YTD
($ millions, except where otherwise indicated)		2006					2005				$ change				2006					2005				$ change
Cash flows from operating activities
Earnings from continuing operations			324					444				(120	)			1,174					1,444				(270	)
Adjustments to reconcile earnings from continuing operations to cash flows from operating activities:
Amortization expense			786					774				12				2,332					2,285				47
Net benefit plans cost			118					103				15				388					300				88
Restructuring and other items			126					31				95				264					31				233
Net gains on investments			(8	)				—				(8	)			(10	)				(39	)			29
Future income taxes			43					110				(67	)			346					260				86
Non-controlling interest			41					49				(8	)			124					149				(25	)
Contributions to employee pension plans			(49	)				(28	)			(21	)			(121	)				(147	)			26
Other employee future benefit plan payments			(25	)				(24	)			(1	)			(72	)				(69	)			(3	)
Payments of restructuring and other items			(124	)				(23	)			(101	)			(194	)				(149	)			(45	)
Operating assets and liabilities			370					133				237				(369	)				(287	)			(82	)
			1,602					1,569				33				3,862					3,778				84
Capital expenditures			(760	)				(958	)			198				(2,198	)				(2,565	)			367
Other investing activities			(3	)				4				(7	)			(14	)				3				(17	)
Cash dividends paid on preferred shares			(21	)				(21	)			—				(62	)				(64	)			2
Cash dividends paid by subsidiaries to non-controlling interest			(75	)				(46	)			(29	)			(185	)				(143	)			(42	)
Free Cash Flow from operations, before common dividends (2)			743					548				195				1,403					1,009				394
Cash dividends paid on common shares			(294	)				(306	)			12				(901	)				(889	)			(12	)
Free Cash Flow from operations, after common dividends (2)			449					242				207				502					120				382
Business acquisitions			(27	)				(55	)			28				(66	)				(177	)			111
Bell Aliant			(152	)				—				(152	)			(225	)				—				(225	)
Increase in investments			(161	)				(75	)			(86	)			(280	)				(216	)			(64	)
Decrease in investments			—					1				(1	)			64					5				59
Free Cash Flow after investments and divestitures			109					113				(4	)			(5	)				(268	)			263
Other financing activities
Increase (decrease) in notes payable and bank advances			80					(55	)			135				245					126				119
Issue of long-term debt			3,419					200				3,219				3,717					1,095				2,622
Repayment of long-term debt			(1,925	)				(185	)			(1,740	)			(2,751	)				(893	)			(1,858	)
Issue of common shares			16					12				4				18					25				(7	)
Repurchase of common shares			(114	)				—				(114	)			(1,108	)				—				(1,108	)
Issue of equity securities by subsidiaries to non-controlling interest			—					1				(1	)			13					1				12
Redemption of equity securities by subsidiaries from non-controlling interest			—					(22	)			22				(255	)				(60	)			(195	)
Other financing activities			(92	)				(15	)			(77	)			(121	)				(47	)			(74	)
			1,384					(64	)			1,448				(242	)				247				(489	)
Cash provided by (used in) continuing operations			1,493					49				1,444				(247	)				(21	)			(226	)
Cash provided by (used in) discontinued operations			688					46				642				2,095					116				1,979
Net decrease in cash and cash equivalents			2,181					95				2,086				1,848					95				1,753
Cash and cash equivalents at beginning of period			112					380				(268	)			445					380				65
Cash and cash equivalents at end of period			2,293					475				1,818				2,293					475				(1,818	)
Consists of:
Cash and cash equivalents of continuing operations			2,293					372				1,921				2,293					372				1,921
Cash and cash equivalents of discontinued operations			—					103				(103	)			—					103				(103	)
Total			2,293					475				1,818				2,293					475				1,818
Other information
Capital expenditures as a percentage of revenues			17.2	%				21.7	%		4.5 pts					16.7	%				19.6	%		2.9 pts
Cash flow per share (5)		$	1.03				$	0.66			$	0.37			$	1.89				$	1.31			$	0.58
Annualized cash flow yield (6)			12.1	%				7.4	%		4.7 pts					7.6	%				13.7	%		(6.1) pts
Common dividend payout			103.2	%				69.4	%		33.8 pts					72.8	%				60.1	%		12.7 pts

BCE Inc. Supplementary Financial Information — Third Quarter 2006     Page 7

BCE Consolidated ⁽¹⁾
Consolidated Cash Flow Data — Historical Trend

		YTD																Total
($ millions, except where otherwise indicated)		2006				Q3 06				Q2 06				Q1 06				2005				Q4 05				Q3 05				Q2 05				Q1 05
Cash flows from operating activities
Earnings from continuing operations			1,174				324				444				406				1,831				387				444				541				459
Adjustments to reconcile earnings from continuing operations to cash flows from operating activities:
Amortization expense			2,332				786				790				756				3,061				776				774				763				748
Net benefit plans cost			388				118				134				136				359				59				103				99				98
Restructuring and other items			264				126				50				88				55				24				31				5				(5	)
Net (gains) losses on investments			(10	)			(8	)			—				(2	)			(38	)			1				—				(39	)			—
Future income taxes			346				43				105				198				718				458				110				50				100
Non-controlling interest			124				41				39				44				201				52				49				52				48
Contributions to employee pension plans			(121	)			(49	)			(41	)			(31	)			(206	)			(59	)			(28	)			(30	)			(89	)
Other employee future benefit plan payments			(72	)			(25	)			(22	)			(25	)			(93	)			(24	)			(24	)			(21	)			(24	)
Payments of restructuring and other items			(194	)			(124	)			(34	)			(36	)			(171	)			(22	)			(23	)			(26	)			(100	)
Operating assets and liabilities			(369	)			370				(159	)			(580	)			(384	)			(97	)			133				(40	)			(380	)
			3,862				1,602				1,306				954				5,333				1,555				1,569				1,354				855
Capital expenditures			(2,198	)			(760	)			(857	)			(581	)			(3,360	)			(795	)			(958	)			(890	)			(717	)
Other investing activities			(14	)			(3	)			(9	)			(2	)			39				36				4				4				(5	)
Cash dividends paid on preferred shares			(62	)			(21	)			(20	)			(21	)			(86	)			(22	)			(21	)			(22	)			(21	)
Cash dividends paid by subsidiaries to non-controlling interest			(185	)			(75	)			(49	)			(61	)			(169	)			(26	)			(46	)			(48	)			(49	)
Free Cash Flow from operations, before common dividends (2)			1,403				743				371				289				1,757				748				548				398				63
Cash dividends paid on common shares			(901	)			(294	)			(302	)			(305	)			(1,195	)			(306	)			(306	)			(305	)			(278	)
Free Cash Flow from operations, after common dividends (2)			502				449				69				(16	)			562				442				242				93				(215	)
Business acquisitions			(66	)			(27	)			(12	)			(27	)			(228	)			(51	)			(55	)			(36	)			(86	)
Bell Aliant			(225	)			(152	)			(51	)			(22	)			—				—				—				—				—
Increase in investments			(280	)			(161	)			(105	)			(14	)			(233	)			(17	)			(75	)			(12	)			(129	)
Decrease in investments			64				—				13				51				17				12				1				3				1
Free Cash Flow after investments and divestitures			(5	)			109				(86	)			(28	)			118				386				113				48				(429	)
Other financing activities
Increase (decrease) in notes payable and bank advances			245				80				232				(67	)			(69	)			(195	)			(55	)			319				(138	)
Issue of long-term debt			3,717				3,419				298				—				1,095				—				200				195				700
Repayment of long-term debt			(2,751	)			(1,925	)			(529	)			(297	)			(1,073	)			(180	)			(185	)			(674	)			(34	)
Issue of common shares			18				16				1				1				25				—				12				4				9
Repurchase of common shares			(1,108	)			(114	)			(469	)			(525	)			—				—				—				—				—
Issue of equity securities by subsidiaries to non-controlling interest			13				—				10				3				1				—				1				—				—
Redemption of equity securities by subsidiaries from non-controlling interest			(255	)			—				(255	)			—				(78	)			(18	)			(22	)			(21	)			(17	)
Other financing activities			(121	)			(92	)			(15	)			(14	)			(63	)			(16	)			(15	)			(17	)			(15	)
			(242	)			1,384				(727	)			(899	)			(162	)			(409	)			(64	)			(194	)			505
Cash provided by (used in) continuing operations			(247	)			1,493				(813	)			(927	)			(44	)			(23	)			49				(146	)			76
Cash provided by (used in) discontinued operations			2,095				688				47				1,360				109				(7	)			46				—				70
Net increase (decrease) in cash and cash equivalents			1,848				2,181				(766	)			433				65				(30	)			95				(146	)			146
Cash and cash equivalents at beginning of period			445				112				878				445				380				475				380				526				380
Cash and cash equivalents at end of period			2,293				2,293				112				878				445				445				475				380				526
Consists of:
Cash and cash equivalents of continuing operations			2,293				2,293				135				879				349				349				372				323				469
Cash and cash equivalents (bank indebtedness) of discontinued operations			—				—				(23	)			(1	)			96				96				103				57				57
Total			2,293				2,293				112				878				445				445				475				380				526
Other information
Capital expenditures as a percentage of revenues			16.7	%			17.2	%			19.5	%			13.3	%			19.1	%			17.5	%			21.7	%			20.4	%			16.7	%
Cash flow per share (5)		$	1.89			$	1.03			$	0.50			$	0.41			$	2.13			$	0.82			$	0.66			$	0.50			$	0.15
Annualized cash flow yield (6)			7.6	%			12.1	%			6.3	%			4.5	%			6.8	%			11.6	%			7.4	%			5.9	%			0.9	%
Common dividend payout			72.8	%			103.2	%			63.4	%			63.9	%			63.2	%			74.1	%			69.4	%			54.2	%			58.6	%

BCE Inc. Supplementary Financial Information — Third Quarter 2006     Page 8

Bell Canada Consolidated ⁽¹⁾
Operational Data

		Q3					Q3												YTD					YTD
($ millions, except where otherwise indicated)		2006					2005				$ change				% change				2006					2005				$ change				% change
Revenues
Local and access			1,292					1,371				(79	)			(5.8	%)			3,924					4,117				(193	)			(4.7	%)
Long distance			458					513				(55	)			(10.7	%)			1,376					1,574				(198	)			(12.6	%)
Wireless			912					798				114				14.3	%			2,566					2,277				289				12.7	%
Data			1,022					1,001				21				2.1	%			3,026					2,919				107				3.7	%
Video			289					251				38				15.1	%			852					708				144				20.3	%
Terminal sales and other			366					388				(22	)			(5.7	%)			1,153					1,188				(35	)			(2.9	%)
Total operating revenues			4,339					4,322				17				0.4	%			12,897					12,783				114				0.9	%
Operating expenses			(2,504	)				(2,520	)			16				0.6	%			(7,387	)				(7,328	)			(59	)			(0.8	%)
EBITDA (2)			1,835					1,802				33				1.8	%			5,510					5,455				55				1.0	%
EBITDA margin (%) (3)			42.3	%				41.7	%						0.6 pts					42.7	%				42.7	%						0.0 pts
Amortization expense			(772	)				(756	)			(16	)			(2.1	%)			(2,289	)				(2,233	)			(56	)			(2.5	%)
Net benefit plans cost			(125	)				(111	)			(14	)			(12.6	%)			(404	)				(324	)			(80	)			(24.7	%)
Restructuring and other items			(111	)				(30	)			(81	)			n.m.				(246	)				(30	)			(216	)			n.m.
Operating income			827					905				(78	)			(8.6	%)			2,571					2,868				(297	)			(10.4	%)
Other (expense) income			(83	)				19				(102	)			n.m.				(115	)				41				(156	)			n.m.
Interest expense			(215	)				(208	)			(7	)			(3.4	%)			(618	)				(620	)			2				0.3	%
Pre-tax earnings			529					716				(187	)			(26.1	%)			1,838					2,289				(451	)			(19.7	%)
Income taxes			(137	)				(198	)			61				30.8	%			(433	)				(604	)			171				28.3	%
Non-controlling interest			(25	)				(16	)			(9	)			(56.3	%)			(77	)				(48	)			(29	)			(60.4	%)
Net Earnings			367					502				(135	)			(26.9	%)			1,328					1,637				(309	)			(18.9	%)
Dividends on preferred shares			(12	)				(14	)			2				14.3	%			(39	)				(41	)			2				4.9	%
Net earnings applicable to common shares			355					488				(133	)			(27.3	%)			1,289					1,596				(307	)			(19.2	%)
Other information
Cash flow information
Free Cash Flow (FCF) (2)
Cash from operating activities			1,552					1,545				7				0.5	%			3,912					3,871				41				1.1	%
Capital expenditures			(715	)				(873	)			158				18.1	%			(2,020	)				(2,386	)			366				15.3	%
Dividends and distributions			(453	)				(468	)			15				3.2	%			(1,405	)				(1,342	)			(63	)			(4.7	%)
Other investing items			(4	)				4				(8	)			n.m.				(14	)				3				(17	)			n.m.
Total			380					208				172				82.7	%			473					146				327				n.m.
Capital expenditures as a percentage of revenues (%)			16.5	%				20.2	%						3.7 pts					15.7	%				18.7	%						3.0 pts
		Sept. 30					Dec. 31
Balance Sheet Information			2006					2005
Net Debt
Long-term debt			11,387					10,177
Debt due within one year			2,214					836
Less: Cash and cash equivalents			(2,265	)				(231	)
Total Net Debt			11,336					10,782
Non-controlling interest			1,261					1,212
Total shareholders’ equity			9,773					10,135
Total Capitalization			22,370					22,129
Net Debt: Total Capitalization			50.7	%				48.7	%
Net Debt: Trailing 12 month EBITDA			1.57					1.50
EBITDA : Interest (trailing 12 month)			8.77					8.69

n.m.: not meaningful

BCE Inc. Supplementary Financial Information — Third Quarter 2006     Page 9

Bell Canada Consolidated ⁽¹⁾
Operational Data — Historical Trend

		YTD																Total
($ millions, except where otherwise indicated)		2006				Q3 06				Q2 06				Q1 06				2005				Q4 05				Q3 05				Q2 05				Q1 05
Revenues
Local and access			3,924				1,292				1,317				1,315				5,465				1,348				1,371				1,374				1,372
Long distance			1,376				458				459				459				2,055				481				513				520				541
Wireless			2,566				912				853				801				3,085				808				798				769				710
Data			3,026				1,022				1,003				1,001				4,016				1,097				1,001				966				952
Video			852				289				286				277				976				268				251				236				221
Terminal sales and other			1,153				366				374				413				1,637				449				388				387				413
Total operating revenues			12,897				4,339				4,292				4,266				17,234				4,451				4,322				4,252				4,209
Operating expenses			(7,387	)			(2,504	)			(2,435	)			(2,448	)			(10,050	)			(2,722	)			(2,520	)			(2,414	)			(2,394	)
EBITDA (2)			5,510				1,835				1,857				1,818				7,184				1,729				1,802				1,838				1,815
EBITDA margin (%) (3)			42.7	%			42.3	%			43.3	%			42.6	%			41.7	%			38.8	%			41.7	%			43.2	%			43.1	%
Amortization expense			(2,289	)			(772	)			(778	)			(739	)			(2,989	)			(756	)			(756	)			(745	)			(732	)
Net benefit plans cost			(404	)			(125	)			(137	)			(142	)			(389	)			(65	)			(111	)			(107	)			(106	)
Restructuring and other items			(246	)			(111	)			(48	)			(87	)			(54	)			(24	)			(30	)			(5	)			5
Operating income			2,571				827				894				850				3,752				884				905				981				982
Other (expense) income			(115	)			(83	)			(31	)			(1	)			40				(1	)			19				11				11
Interest expense			(618	)			(215	)			(199	)			(204	)			(827	)			(207	)			(208	)			(206	)			(206	)
Pre-tax earnings			1,838				529				664				645				2,965				676				716				786				787
Income taxes			(433	)			(137	)			(165	)			(131	)			(742	)			(138	)			(198	)			(177	)			(229	)
Non-controlling interest			(77	)			(25	)			(26	)			(26	)			(70	)			(22	)			(16	)			(16	)			(16	)
Net Earnings (loss)			1,328				367				473				488				2,153				516				502				593				542
Dividends on preferred shares			(39	)			(12	)			(13	)			(14	)			(55	)			(14	)			(14	)			(13	)			(14	)
Net earnings applicable to common shares			1,289				355				460				474				2,098				502				488				580				528
Other information
Cash flow information
Free Cash Flow (FCF) (2)
Cash from operating activities			3,912				1,552				1,401				959				5,506				1,635				1,545				1,466				860
Capital expenditures			(2,020	)			(715	)			(767	)			(538	)			(3,122	)			(736	)			(873	)			(847	)			(666	)
Dividends and distributions			(1,405	)			(453	)			(454	)			(498	)			(1,747	)			(405	)			(468	)			(452	)			(422	)
Other investing items			(14	)			(4	)			(9	)			(1	)			5				2				4				4				(5	)
Total			473				380				171				(78	)			642				496				208				171				(233	)
Capital expenditures as a percentage of revenues (%)			15.7	%			16.5	%			17.9	%			12.6	%			18.1	%			16.5	%			20.2	%			19.9	%			15.8	%
						Sept. 30				June 30			March 31					Dec. 31
Balance Sheet Information							2006				2006				2006				2005
Net Debt
Long-term debt							11,387				9,895				9,955				10,177
Debt due within one year							2,214				1,500				1,806				836
Less: Cash and cash equivalents							(2,265	)			(97	)			(685	)			(231	)
Total Net Debt							11,336				11,298				11,076				10,782
Non-controlling interest							1,261				1,028				1,214				1,212
Total shareholders’ equity							9,773				10,280				10,191				10,135
Total Capitalization							22,370				22,606				22,481				22,129
Net Debt: Total Capitalization							50.7	%			50.0	%			49.3	%			48.7	%
Net Debt : Trailing 12 month EBITDA							1.57				1.57				1.54				1.50
EBITDA : Interest (trailing 12 month)							8.77				8.81				8.71				8.69

BCE Inc. Supplementary Financial Information — Third Quarter 2006     Page 10

Bell Canada Consolidated ⁽¹⁾
Statistical Data

		Q3					Q3								YTD					YTD
		2006					2005				% change				2006					2005				% change
Wireline
Local
Network access services (k)
Residential			7,569					8,133				(6.9	%)			7,569					8,133				(6.9	%)
Business			4,668					4,570				2.1	%			4,668					4,570				2.1	%
Total			12,237					12,703				(3.7	%)			12,237					12,703				(3.7	%)
Long Distance (LD)
Conversation minutes (M)			4,477					4,457				0.4	%			13,609					13,669				(0.4	%)
Average revenue per minute ($)			0.095					0.103				(7.8	%)			0.093					0.103				(9.7	%)
Data
Internet subscribers (9) (k)
High Speed Internet net activations (k)			90					106				(15.1	%)			208					326				(36.2	%)
High Speed Internet subscribers (k)			2,403					2,134				12.6	%			2,403					2,134				12.6	%
Dial-up Internet subscribers (k)			531					621				(14.5	%)			531					621				(14.5	%)
			2,934					2,755				6.5	%			2,934					2,755				6.5	%
Wireless
Cellular & PCS net activations (k)
Pre-paid			20					73				(72.6	%)			25					144				(82.6	%)
Post-paid			94					50				88.0	%			238					162				46.9	%
			114					123				(7.3	%)			263					306				(14.1	%)
Cellular & PCS subscribers (k)
Pre-paid			1,453					1,345				8.0	%			1,453					1,345				8.0	%
Post-paid			4,251					3,886				9.4	%			4,251					3,886				9.4	%
			5,704					5,231				9.0	%			5,704					5,231				9.0	%
Average revenue per unit (ARPU) ($/month)			53					51				3.9	%			51					49				4.1	%
Pre-paid			16					14				14.3	%			14					13				7.7	%
Post-paid			66					63				4.8	%			64					60				6.7	%
Churn (%) (average per month)			1.5	%				1.5	%		0.0 pts					1.6	%				1.6	%		0.0 pts
Pre-paid			2.8	%				1.6	%		(1.2) pts					2.8	%				1.8	%		(1.0) pts
Post-paid			1.1	%				1.5	%		0.4 pts					1.1	%				1.5	%		0.4 pts
Usage per subscriber (min/month)			277					265				4.5	%			267					253				5.5	%
Cost of acquisition (COA) (10) ($/sub)			415					432				3.9	%			410					405				(1.2	%)
Wireless EBITDA ($ millions)			411					363				13.2	%			1,133					996				13.8	%
Wireless EBITDA margin (11)			43.7	%				44.0	%		(0.3) pts					42.9	%				42.7	%		0.2 pts
Wireless capital expenditures ($ millions)			110					103				(6.8	%)			277					285				2.8	%
Wireless capital expenditures as a percentage of revenue			12.1	%				12.9	%		0.8 pts					10.8	%				12.5	%		1.7 pts
Paging subscribers (k)			298					364				(18.1	%)			298					364				(18.1	%)
Paging average revenue per unit ($/month)			10					10				0.0	%			10					12				(16.7	%)
Video (DTH and VDSL)
Total subscribers (k)			1,788					1,677				6.6	%			1,788					1,677				6.6	%
Net subscriber activations (k)			30					82				(63.4	%)			61					174				(64.9	%)
ARPU ($/month)			54					51				5.9	%			53					49				8.2	%
Video EBITDA ($ millions)			42					12				n.m.				155					22				n.m.
Churn (%) (average per month)			1.0	%				1.0	%		0.0 pts					1.0	%				0.9	%		(0.1) pts

n.m.: not meaningful

BCE Inc. Supplementary Financial Information — Third Quarter 2006     Page 11

Bell Canada Consolidated ⁽¹⁾
Statistical Data — Historical Trend

		YTD																Total
		2006				Q3 06				Q2 06				Q1 06				2005				Q4 05				Q3 05				Q2 05				Q1 05
Wireline
Local
Network access services (k)
Residential							7,569				7,673				7,842								7,985				8,133				8,189				8,332
Business							4,668				4,635				4,600								4,596				4,570				4,538				4,518
Total							12,237				12,308				12,442								12,581				12,703				12,727				12,850
Long Distance (LD)
Conversation minutes (M)			13,609				4,477				4,570				4,562				18,211				4,542				4,457				4,641				4,571
Average revenue per minute ($)			0.093				0.095				0.092				0.093				0.101				0.094				0.103				0.100				0.106
Data
Internet subscribers (9) (k)
High Speed Internet net activations (k)			208				90				47				71				387				61				106				92				128
High Speed Internet subscribers (k)							2,403				2,313				2,266								2,195				2,134				2,028				1,936
Dial-up Internet subscribers (k)							531				552				564								586				621				666				696
							2,934				2,865				2,830								2,781				2,755				2,694				2,632
Wireless
Cellular & PCS net activations (k)
Pre-paid			25				20				(16	)			21				227				83				73				29				42
Post-paid			238				94				106				38				289				127				50				117				(5	)
			263				114				90				59				516				210				123				146				37
Cellular & PCS subscribers (k)
Pre-paid							1,453				1,433				1,449								1,428				1,345				1,272				1,243
Post-paid							4,251				4,157				4,051								4,013				3,886				3,836				3,719
							5,704				5,590				5,500								5,441				5,231				5,108				4,962
Average revenue per unit (ARPU) ($/month)			51				53				51				48				49				51				51				50				46
Pre-paid			14				16				14				13				14				14				14				16				11
Post-paid			64				66				63				61				61				64				63				61				57
Churn (%) (average per month)			1.6	%			1.5	%			1.6	%			1.6	%			1.6	%			1.5	%			1.5	%			1.6	%			1.6	%
Pre-paid			2.8	%			2.8	%			3.2	%			2.5	%			1.9	%			2.2	%			1.6	%			2.1	%			1.8	%
Post-paid			1.1	%			1.1	%			1.1	%			1.3	%			1.4	%			1.3	%			1.5	%			1.4	%			1.6	%
Usage per subscriber (min/month)			267				277				270				249				255				261				265				262				232
Cost of acquisition (COA) (10) ($/sub)			410				415				419				394				406				409				432				401				373
Wireless EBITDA ($ millions)			1,133				411				367				355				1,307				311				363				333				300
Wireless EBITDA margin (11)			42.9	%			43.7	%			41.8	%			43.0	%			41.2	%			37.1	%			44.0	%			42.4	%			41.4	%
Wireless capital expenditures ($ millions)			277				110				98				69				343				58				103				118				64
Wireless capital expenditures as a percentage of revenue			10.8	%			12.1	%			11.4	%			8.6	%			11.1	%			7.2	%			12.9	%			15.3	%			9.0	%
Paging subscribers (k)							298				314				328								347				364				385				404
Paging average revenue per unit ($/month)			10				10				10				10				11				10				10				10				15
Video (DTH and VDSL)
Total subscribers (k)							1,788				1,758				1,739								1,727				1,677				1,595				1,532
Net subscriber activations (k)			61				30				19				12				224				50				82				63				29
ARPU ($/month)			53				54				54				53				50				52				51				50				48
Video EBITDA ($ millions)			155				42				66				47				45				23				12				6				4
Churn (%) (average per month)			1.0	%			1.0	%			1.0	%			0.9	%			0.9	%			1.0	%			1.0	%			0.9	%			0.8	%

BCE Inc. Supplementary Financial Information — Third Quarter 2006     Page 12

Accompanying Notes

(1)		We have reclassified some of the figures for the comparative period to make them consistent with the current period’s presentation. Starting in the third quarter of 2006, our segment reporting reflects the formation of Bell Aliant and its operations are now reported as a separate segment. Since Bell Aliant includes the operation of Bell Canada’s former regional wireline operations and Bell Nordiq, the results of our other segments have been restated to reflect the sale of these operations. Further to the Bell Aliant transaction, the operations of Aliant Mobility and the DownEast retail stores are reported in our Residential and Business segments.
(2)		Non-GAAP Financial Measures
		EBITDA
		The term, EBITDA (earnings before interest, taxes, depreciation and amortization), does not have any standardized meaning prescribed by Canadian generally accepted accounting principles (GAAP). It is therefore unlikely to be comparable to similar measures presented by other companies. EBITDA is presented on a consistent basis from period to period.
		We define EBITDA as operating revenues less operating expenses, which means it represents operating income before amortization expense, net benefit plans cost, and restructuring and other items.
		We use EBITDA, among other measures, to assess the operating performance of our ongoing businesses without the effects of amortization expense, net benefit plans cost, and restructuring and other items. We exclude amortization expense and net benefit plans cost because they largely depend on the accounting methods and assumptions a company uses, as well as non-operating factors, such as the historical cost of capital assets and the fund performance of a company’s pension plans. We exclude these items because they affect the comparability of our financial results and could potentially distort the analysis trends in business performance. Excluding restructuring and other items does not imply they are necessarily non-recurring.
		EBITDA allows us to compare our operating performance on a consistent basis. We believe that certain investors and analysts use EBITDA to measure a company’s ability to service debt and to meet other payment obligations, or as a common valuation measurement in the telecommunications industry.
		EBITDA should not be confused with net cash flows from operating activities. The most comparable Canadian GAAP financial measure is operating income.
		EPS before restructuring and other items, net gains on investments and costs incurred to form the Bell Aliant Regional Communications Income Fund (Bell Aliant)
		The term, EPS (earnings per share) before restructuring and other items, net gains on investments and costs incurred to form Bell Aliant, does not have any standardized meaning prescribed by GAAP. It is therefore unlikely to be comparable to similar measures presented by other companies.
		We use EPS before restructuring and other items, net gains on investments and costs incurred to form Bell Aliant, among other measures, to assess the operating performance of our ongoing businesses without the effects of after-tax restructuring and other items, net gains on investments and costs incurred to form Bell Aliant. We exclude these items because they affect the comparability of our financial results and could potentially distort the analysis of trends in business performance. The exclusion of these items does not imply they are necessarily non-recurring.
		The most comparable Canadian GAAP financial measure is EPS.
		FREE CASH FLOW
		The term, free cash flow, does not have any standardized meaning prescribed by Canadian GAAP. It is therefore unlikely to be comparable to similar measures presented by other companies. Free cash flow is presented on a consistent basis from period to period, which allows us to compare our financial performance on a consistent basis.
		We define free cash flow as cash from operating activities after capital expenditures, total dividends and other investing activities.
		We consider free cash flow to be an important indicator of the financial strength and performance of our business because it shows how much cash is available to repay debt and to reinvest in our company. We believe that certain investors and analysts use free cash flow when valuing a business and its underlying assets.
		The most comparable Canadian GAAP financial measure is cash from operating activities.

BCE Inc. Supplementary Financial Information — Third Quarter 2006     Page 13

Accompanying Notes (continued)

(3)		EBITDA margin is calculated as follows:
		EBITDA Operating revenues
(4)		Effective Q2 2005 the total Wireless capital expenditures are segregated between the Residential and Business segments. Prior quarters have been restated accordingly.
(5)		Cash flow per share is calculated as follows:
		Cash flow from operations less capital expenditures Average number of common shares outstanding during the period
(6)		Annualized cash flow yield is calculated as follows:
		Free cash flow from operations before common dividends Number of common shares outstanding at end of period multiplied by share price at end of period
		Note: to annualize, multiply the most recent quarter’s resultant by 4.
(7)		Reflects an increase in the total Bell Canada debt as a result of the completion of the purchase price allocation (PPA) relating to the repurchase of SBC’s 20% interest in Bell Canada, which resulted in an increase in long-term debt of $165 million. This increase in long-term debt will be applied against interest expense ($3 million in Q3 2006) over the remaining terms of the related long-term debt.
(8)		At the Bell Canada Consolidated and BCE Consolidated level, Third Party Preferred Shares reflected in the financial statements of subsidiaries are included in non-controlling interest on the balance sheet.
(9)		High Speed Internet subscribers include Residential, Business and Wholesale. Dial-up Internet subscribers include Residential and Business.
(10)		Includes allocation of selling costs from Bell Canada and excludes costs of migrating from analog to digital. Cost of Acquisition (COA) per subscriber is reflected on a consolidated basis.
(11)		Wireless EBITDA margins are calculated based on total Wireless operating revenues (i.e. external revenues as shown on pages 10 and 11 plus inter-company revenues).

BCE Inc. Supplementary Financial Information — Third Quarter 2006     Page 14