Supplementary Financial Information

EX-99.2 3 supp_q32011.htm SUPPLEMENTARY FINANCIAL INFORMATION - THIRD QUARTER 2011 Supplementary Financial Information

EXHIBIT 99.2

BCE Inc. ⁽¹⁾
Consolidated Operational Data

($ millions of Canadian dollars, except per share amounts) (unaudited)		Q3 2011			Q3 2010			$ change		% change			YTD 2011			YTD 2010			$ change		% change
Operating revenues		4,910			4,517			393		8.7	%		14,331			13,390			941		7.0	%
Operating costs ^(A)		(2,907	)		(2,627	)		(280	)	(10.7	%)		(8,389	)		(7,802	)		(587	)	(7.5	%)
Pension current service costs		(62	)		(49	)		(13	)	(26.5	%)		(182	)		(151	)		(31	)	(20.5	%)
EBITDA ⁽³⁾		1,941			1,841			100		5.4	%		5,760			5,437			323		5.9	%
*EBITDA margin* ⁽⁵⁾		*39.5*	%		40.8	%				(1.3	) pts		*40.2*	%		40.6	%				(0.4	) pts
Depreciation		(628	)		(600	)		(28	)	(4.7	%)		(1,877	)		(1,781	)		(96	)	(5.4	%)
Amortization of intangible assets		(180	)		(181	)		1		0.6	%		(542	)		(544	)		2		0.4	%
Severance, acquisition and other costs		(130	)		(129	)		(1	)	(0.8	%)		(410	)		(176	)		(234	)	n.m.
Finance costs
Interest expense		(210	)		(169	)		(41	)	(24.3	%)		(627	)		(511	)		(116	)	(22.7	%)
Interest on employee benefit obligations		(247	)		(248	)		1		0.4	%		(736	)		(744	)		8		1.1	%
Interest on fund unit liability		-			(92	)		92		100.0	%		-			(277	)		277		100.0	%
Expected return on pension plan assets		259			225			34		15.1	%		772			674			98		14.5	%
Other income (expense)		11			(67	)		78		n.m.			134			241			(107	)	(44.4	%)
Earnings before income taxes		816			580			236		40.7	%		2,474			2,319			155		6.7	%
Income taxes		(80	)		(98	)		18		18.4	%		(473	)		(473	)		-		0.0	%
Net earnings		736			482			254		52.7	%		2,001			1,846			155		8.4	%
Net earnings attributable to:
Common shareholders		642			454			188		41.4	%		1,735			1,765			(30	)	(1.7	%)
Preferred shareholders		33			27			6		22.2	%		93			83			10		12.0	%
Non-controlling interest		61			1			60		n.m.			173			(2	)		175		n.m.
Net earnings		736			482			254		52.7	%		2,001			1,846			155		8.4	%
Net earnings per common share - basic	$	0.83		$	0.60		$	0.23		38.3	%	$	2.26		$	2.32		$	(0.06	)	(2.6	%)
Net earnings per common share - diluted	$	0.82		$	0.60		$	0.22		36.7	%	$	2.25		$	2.32		$	(0.07	)	(3.0	%)
Dividends per common share	$	0.5175		$	0.4575		$	0.06		13.1	%	$	1.5275		$	1.3275		$	0.20		15.1	%
Average number of common shares outstanding - basic (millions)		777.6			756.7								769.1			760.7
Average number of common shares outstanding - diluted (millions)		778.2			757.3								769.5			761.1
Number of common shares outstanding (millions)		778.0			755.6								778.0			755.6

Adjusted Net Earnings and EPS
Net earnings attributable to common shareholders		642			454			188		41.4	%		1,735			1,765			(30	)	(1.7	%)
Severance, acquisition and other costs		82			91			(9	)	(9.9	%)		284			122			162		n.m.
Net gains on investments		-			-			-		n.m.			(89	)		(133	)		44		33.1	%
Fair value adjustment on fund unit liability		-			56			(56	)	100.0	%		-			(107	)		107		100.0	%
Adjustment to reflect interest on fund unit liability as non-controlling interest		-			10			(10	)	100.0	%		-			26			(26	)	(100.0	%)
Adjusted net earnings attributable to common shareholders		724			611			113		18.5	%		1,930			1,673			257		15.4	%
Impact on net earnings per share	$	0.10		$	0.21		$	(0.11	)	(52.4	%)	$	0.25		$	(0.12	)	$	0.37		n.m.

Adjusted EPS ⁽⁴⁾	$	0.93		$	0.81		$	0.12		14.8	%	$	2.51		$	2.20		$	0.31		14.1	%

(A)	Excludes pension current service costs
n.m. :	not meaningful

BCE Inc. Supplementary Financial Information – Third Quarter 2011 Page 2

BCE Inc.
Consolidated Operational Data - Historical Trend

($ millions of Canadian dollars, except per share amounts) (unaudited)		YTD 2011			Q3 11			Q2 11			Q1 11			Total 2010			Q4 10			Q3 10			Q2 10			Q1 10
Operating revenues		14,331			4,910			4,955			4,466			18,069			4,679			4,517			4,440			4,433
Operating costs ^(A)		(8,389	)		(2,907	)		(2,908	)		(2,574	)		(10,684	)		(2,882	)		(2,627	)		(2,548	)		(2,627	)
Pension current service costs		(182	)		(62	)		(61	)		(59	)		(200	)		(49	)		(49	)		(49	)		(53	)
EBITDA		5,760			1,941			1,986			1,833			7,185			1,748			1,841			1,843			1,753
*EBITDA margin*		*40.2*	%		*39.5*	%		40.1	%		41.0	%		39.8	%		37.4	%		40.8	%		41.5	%		39.5	%
Depreciation		(1,877	)		(628	)		(638	)		(611	)		(2,388	)		(607	)		(600	)		(595	)		(586	)
Amortization of intangible assets		(542	)		(180	)		(183	)		(179	)		(737	)		(193	)		(181	)		(183	)		(180	)
Severance, acquisition and other costs		(410	)		(130	)		(219	)		(61	)		(262	)		(86	)		(129	)		(15	)		(32	)
Finance costs
Interest expense		(627	)		(210	)		(226	)		(191	)		(685	)		(174	)		(169	)		(170	)		(172	)
Interest on employee benefit obligations		(736	)		(247	)		(247	)		(242	)		(992	)		(248	)		(248	)		(248	)		(248	)
Interest on fund unit liability		-			-			-			-			(370	)		(93	)		(92	)		(93	)		(92	)
Expected return on pension plan assets		772			259			259			254			898			224			225			224			225
Other income (expense)		134			11			145			(22	)		173			(68	)		(67	)		39			269
Earnings before income taxes		2,474			816			877			781			2,822			503			580			802			937
Income taxes		(473	)		(80	)		(194	)		(199	)		(632	)		(159	)		(98	)		(172	)		(203	)
Net earnings		2,001			736			683			582			2,190			344			482			630			734
Net earnings attributable to:
Common shareholders		1,735			642			590			503			2,083			318			454			605			706
Preferred shareholders		93			33			31			29			112			29			27			27			29
Non-controlling interest		173			61			62			50			(5	)		(3	)		1			(2	)		(1	)
Net earnings		2,001			736			683			582			2,190			344			482			630			734
Net earnings per common share - basic	$	2.26		$	0.83		$	0.76		$	0.67		$	2.74		$	0.42		$	0.60		$	0.80		$	0.92
Net earnings per common share - diluted	$	2.25		$	0.82		$	0.76		$	0.67		$	2.74		$	0.42		$	0.60		$	0.80		$	0.92
Dividends per common share	$	1.5275		$	0.5175		$	0.5175		$	0.4925		$	1.7850		$	0.4575		$	0.4575		$	0.4350		$	0.4350
Average number of common shares outstanding - basic (millions)		769.1			777.6			776.6			752.9			759.0			754.1			756.7			759.7			765.7
Average number of common shares outstanding - diluted (millions)		769.5			778.2			777.1			753.5			759.5			755.0			757.3			760.1			766.0
Number of common shares outstanding (millions)		778.0			778.0			777.5			754.1			752.3			752.3			755.6			759.1			763.0

Adjusted Net Earnings and EPS
Net earnings attributable to common shareholders		1,735			642			590			503			2,083			318			454			605			706
Severance, acquisition and other costs		284			82			162			40			189			67			91			6			25
Net gains on investments		(89	)		-			(89	)		-			(133	)		-			-			(8	)		(125	)
Fair value adjustment on fund unit liability		-			-			-			-			(49	)		58			56			(16	)		(147	)
Adjustment to reflect interest on fund unit liability as non-controlling interest		-			-			-			-			29			3			10			8			8
Adjusted net earnings attributable to common shareholders		1,930			724			663			543			2,119			446			611			595			467
Impact on net earnings per share	$	0.25		$	0.10		$	0.10		$	0.05		$	0.05		$	0.17		$	0.21		$	(0.02	)	$	(0.31	)

Adjusted EPS	$	2.51		$	0.93		$	0.86		$	0.72		$	2.79		$	0.59		$	0.81		$	0.78		$	0.61

(A)	Excludes pension current service costs

BCE Inc. Supplementary Financial Information – Third Quarter 2011 Page 3

BCE Inc.
Segmented Data ⁽²⁾

($ millions of Canadian dollars, except where otherwise indicated) (unaudited)	Q3 2011		Q3 2010		$ change		% change		YTD 2011		YTD 2010		$ change		% change

Revenues
Bell Wireline	2,610		2,694		(84	)	(3.1	%)	7,912		8,126		(214	)	(2.6	%)
Bell Wireless	1,339		1,268		71		5.6	%	3,866		3,617		249		6.9	%
Bell Media	435		-		435		n.m.		964		-		964		n.m.
Inter-segment eliminations	(71	)	(46	)	(25	)	(54.3	%)	(185	)	(139	)	(46	)	(33.1	%)
Total Bell	4,313		3,916		397		10.1	%	12,557		11,604		953		8.2	%
Bell Aliant	700		703		(3	)	(0.4	%)	2,074		2,092		(18	)	(0.9	%)
Inter-segment eliminations	(103	)	(102	)	(1	)	(1.0	%)	(300	)	(306	)	6		2.0	%
Total BCE Inc.	4,910		4,517		393		8.7	%	14,331		13,390		941		7.0	%

Operating costs
Bell Wireline	(1,567	)	(1,668	)	101		6.1	%	(4,754	)	(5,051	)	297		5.9	%
Bell Wireless	(858	)	(801	)	(57	)	(7.1	%)	(2,464	)	(2,283	)	(181	)	(7.9	%)
Bell Media	(354	)	-		(354	)	n.m.		(760	)	-		(760	)	n.m.
Inter-segment eliminations	71		46		25		54.3	%	185		139		46		33.1	%
Total Bell	(2,708	)	(2,423	)	(285	)	(11.8	%)	(7,793	)	(7,195	)	(598	)	(8.3	%)
Bell Aliant	(364	)	(355	)	(9	)	(2.5	%)	(1,078	)	(1,064	)	(14	)	(1.3	%)
Inter-segment eliminations	103		102		1		1.0	%	300		306		(6	)	(2.0	%)
Total BCE Inc.	(2,969	)	(2,676	)	(293	)	(10.9	%)	(8,571	)	(7,953	)	(618	)	(7.8	%)

EBITDA
Bell Wireline	1,043		1,026		17		1.7	%	3,158		3,075		83		2.7	%
Margin	*40.0*	%	38.1	%			1.9	pts	*39.9*	%	37.8	%			2.1	pts
Bell Wireless	481		467		14		3.0	%	1,402		1,334		68		5.1	%
Margin	*35.9*	%	36.8	%			(0.9	) pts	*36.3*	%	36.9	%			(0.6	) pts
Bell Media	81		-		81		n.m.		204		-		204		n.m.
Margin	18.6	%	n.m.				n.m.		*21.2*	%	n.m.				n.m.
Total Bell	1,605		1,493		112		7.5	%	4,764		4,409		355		8.1	%
Margin	*37.2*	%	38.1	%			(0.9	) pts	*37.9*	%	38.0	%			(0.1	) pts
Bell Aliant	336		348		(12	)	(3.4	%)	996		1,028		(32	)	(3.1	%)
Margin	*48.0*	%	49.5	%			(1.5	) pts	*48.0*	%	49.1	%			(1.1	) pts
Total BCE Inc.	1,941		1,841		100		5.4	%	5,760		5,437		323		5.9	%
Margin	*39.5*	%	40.8	%			(1.3	) pts	*40.2*	%	40.6	%			(0.4	) pts
Capital expenditures
Bell Wireline	474		521		47		9.0	%	1,326		1,373		47		3.4	%
Capital Intensity ⁽⁶⁾	*18.2*	%	19.3	%			1.1	pts	*16.8*	%	16.9	%			0.1	pts
Bell Wireless	150		123		(27	)	(22.0	%)	431		260		(171	)	(65.8	%)
Capital Intensity	*11.2*	%	9.7	%			(1.5	) pts	*11.1*	%	7.2	%			(3.9	) pts
Bell Media	28		-		(28	)	n.m.		55		-		(55	)	n.m.
Capital Intensity	6.4	%	n.m.				n.m.		*5.7*	%	n.m.				n.m.
Total Bell	652		644		(8	)	(1.2	%)	1,812		1,633		(179	)	(11.0	%)
Capital Intensity	*15.1*	%	16.4	%			1.3	pts	*14.4*	%	14.1	%			(0.3	) pts
Bell Aliant	162		113		(49	)	(43.4	%)	436		331		(105	)	(31.7	%)
Capital Intensity	23.1	%	16.1	%			(7.0	) pts	21.0	%	15.8	%			(5.2	) pts
Total BCE Inc.	814		757		(57	)	(7.5	%)	2,248		1,964		(284	)	(14.5	%)
Capital Intensity	*16.6*	%	16.8	%			0.2	pts	*15.7*	%	14.7	%			(1.0	) pts

BCE Inc. Supplementary Financial Information – Third Quarter 2011 Page 4

BCE Inc.
Segmented Data - Historical Trend

($ millions of Canadian dollars, except where otherwise indicated) (unaudited)	YTD 2011		Q3 11		Q2 11		Q1 11		Total 2010		Q4 10		Q3 10		Q2 10		Q1 10

Revenues
Bell Wireline	7,912		2,610		2,630		2,672		10,948		2,822		2,694		2,685		2,747
Bell Wireless	3,866		1,339		1,276		1,251		4,906		1,289		1,268		1,203		1,146
Bell Media	964		435		529		-		-		-		-		-		-
Inter-segment eliminations	(185	)	(71	)	(73	)	(41	)	(185	)	(46	)	(46	)	(45	)	(48	)
Total Bell	12,557		4,313		4,362		3,882		15,669		4,065		3,916		3,843		3,845
Bell Aliant	2,074		700		692		682		2,808		716		703		700		689
Inter-segment eliminations	(300	)	(103	)	(99	)	(98	)	(408	)	(102	)	(102	)	(103	)	(101	)
Total BCE Inc.	14,331		4,910		4,955		4,466		18,069		4,679		4,517		4,440		4,433

Operating costs
Bell Wireline	(4,754	)	(1,567	)	(1,559	)	(1,628	)	(6,854	)	(1,803	)	(1,668	)	(1,640	)	(1,743	)
Bell Wireless	(2,464	)	(858	)	(816	)	(790	)	(3,188	)	(905	)	(801	)	(747	)	(735	)
Bell Media	(760	)	(354	)	(406	)	-		-		-		-		-		-
Inter-segment eliminations	185		71		73		41		185		46		46		45		48
Total Bell	(7,793	)	(2,708	)	(2,708	)	(2,377	)	(9,857	)	(2,662	)	(2,423	)	(2,342	)	(2,430	)
Bell Aliant	(1,078	)	(364	)	(360	)	(354	)	(1,435	)	(371	)	(355	)	(358	)	(351	)
Inter-segment eliminations	300		103		99		98		408		102		102		103		101
Total BCE Inc.	(8,571	)	(2,969	)	(2,969	)	(2,633	)	(10,884	)	(2,931	)	(2,676	)	(2,597	)	(2,680	)

EBITDA
Bell Wireline	3,158		1,043		1,071		1,044		4,094		1,019		1,026		1,045		1,004
Margin	*39.9*	%	*40.0*	%	40.7	%	39.1	%	37.4	%	36.1	%	38.1	%	38.9	%	36.5	%
Bell Wireless	1,402		481		460		461		1,718		384		467		456		411
Margin	*36.3*	%	*35.9*	%	36.1	%	36.9	%	35.0	%	29.8	%	36.8	%	37.9	%	35.9	%
Bell Media	204		81		123		-		-		-		-		-		-
Margin	*21.2*	%	*18.6*	%	23.3	%	n.m.		n.m.		n.m.		n.m.		n.m.		n.m.
Total Bell	4,764		1,605		1,654		1,505		5,812		1,403		1,493		1,501		1,415
Margin	*37.9*	%	*37.2*	%	37.9	%	38.8	%	37.1	%	34.5	%	38.1	%	39.1	%	36.8	%
Bell Aliant	996		336		332		328		1,373		345		348		342		338
Margin	*48.0*	%	*48.0*	%	48.0	%	48.1	%	48.9	%	48.2	%	49.5	%	48.9	%	49.1	%
Total BCE Inc.	5,760		1,941		1,986		1,833		7,185		1,748		1,841		1,843		1,753
Margin	*40.2*	%	*39.5*	%	40.1	%	41.0	%	39.8	%	37.4	%	40.8	%	41.5	%	39.5	%
Capital expenditures
Bell Wireline	1,326		474		450		402		2,019		646		521		464		388
Capital Intensity	*16.8*	%	*18.2*	%	17.1	%	15.0	%	18.4	%	22.9	%	19.3	%	17.3	%	14.1	%
Bell Wireless	431		150		168		113		485		225		123		84		53
Capital Intensity	*11.1*	%	*11.2*	%	13.2	%	9.0	%	9.9	%	17.5	%	9.7	%	7.0	%	4.6	%
Bell Media	55		28		27		-		-		-		-		-		-
Capital Intensity	*5.7*	%	6.4	%	5.1	%	n.m.		n.m.		n.m.		n.m.		n.m.		n.m.
Total Bell	1,812		652		645		515		2,504		871		644		548		441
Capital Intensity	*14.4*	%	*15.1*	%	14.8	%	13.3	%	16.0	%	21.4	%	16.4	%	14.3	%	11.5	%
Bell Aliant	436		162		155		119		494		163		113		124		94
Capital Intensity	*21.0*	%	*23.1*	%	22.4	%	17.4	%	17.6	%	22.8	%	16.1	%	17.7	%	13.6	%
Total BCE Inc.	2,248		814		800		634		2,998		1,034		757		672		535
Capital Intensity	*15.7*	%	*16.6*	%	16.1	%	14.2	%	16.6	%	22.1	%	16.8	%	15.1	%	12.1	%

BCE Inc. Supplementary Financial Information – Third Quarter 2011 Page 5

Bell Wireline ⁽²⁾

($ millions of Canadian dollars, except where otherwise indicated) (unaudited)	Q3 2011		Q3 2010		% change		YTD 2011		YTD 2010		% change
Bell Wireline
Local & access	710		759		(6.5	%)	2,165		2,279		(5.0	%)
Long distance	223		224		(0.4	%)	684		691		(1.0	%)
Data	930		972		(4.3	%)	2,818		2,950		(4.5	%)
Video	454		437		3.9	%	1,374		1,299		5.8	%
Equipment & other	212		223		(4.9	%)	639		670		(4.6	%)
Total external revenues	2,529		2,615		(3.3	%)	7,680		7,889		(2.6	%)
Inter-segment revenues	81		79		2.5	%	232		237		(2.1	%)
Total Bell Wireline operating revenue	2,610		2,694		(3.1	%)	7,912		8,126		(2.6	%)
Operating costs	(1,567	)	(1,668	)	6.1	%	(4,754	)	(5,051	)	5.9	%
EBITDA	1,043		1,026		1.7	%	3,158		3,075		2.7	%
EBITDA Margin	*40.0*	%	38.1	%	1.9	pts	*39.9*	%	37.8	%	2.1	pts

Capital expenditures	474		521		9.0	%	1,326		1,373		3.4	%
Capital intensity	18.2	%	19.3	%	1.1	pts	*16.8*	%	16.9	%	0.1	pts

Local
Network access services (NAS)
Residential	3,365,854		3,645,437		(7.7	%)	3,365,854		3,645,437		(7.7	%)
Business	2,839,482		2,894,440		(1.9	%)	2,839,482		2,894,440		(1.9	%)
Total	6,205,336		6,539,877		(5.1	%)	6,205,336		6,539,877		(5.1	%)
Network access service net (losses)/activations
Residential	(95,267	)	(68,483	)	(39.1	%)	(243,033	)	(241,093	)	(0.8	%)
Business	(15,362	)	(23,686	)	35.1	%	(27,336	)	(80,052	)	65.9	%
Total	(110,629	)	(92,169	)	(20.0	%)	(270,369	)	(321,145	)	15.8	%
Internet
High Speed Internet net activations	(101	)	21,668		n.m		14,335		28,236		(49.2	%)
High Speed Internet subscribers EOP	2,111,661		2,085,227		1.3	%	2,111,661		2,085,227		1.3	%
Video
Net subscriber activations	26,037		18,538		40.5	%	39,772		48,202		(17.5	%)
Total subscribers EOP	2,059,870		1,997,079		3.1	%	2,059,870		1,997,079		3.1	%
ARPU ⁽⁷⁾($/month)	74.45		73.34		1.5	%	75.16		73.11		2.8	%
Churn ⁽⁸⁾(%) (average per month)	1.8	%	1.6	%	(0.2	) pts	1.6	%	1.3	%	(0.3	) pts

BCE Inc. Supplementary Financial Information – Third Quarter 2011 Page 6

Bell Wireline - Historical Trend

($ millions of Canadian dollars, except where otherwise indicated) (unaudited)	YTD 2011		Q3 11		Q2 11		Q1 11		Total 2010		Q4 10		Q3 10		Q2 10		Q1 10
Bell Wireline
Local & access	2,165		710		726		729		3,012		733		759		758		762
Long distance	684		223		227		234		923		232		224		231		236
Data	2,818		930		933		955		3,985		1,035		972		963		1,015
Video	1,374		454		460		460		1,749		450		437		434		428
Equipment & other	639		212		208		219		962		292		223		220		227
Total external revenues	7,680		2,529		2,554		2,597		10,631		2,742		2,615		2,606		2,668
Inter-segment revenues	232		81		76		75		317		80		79		79		79
Total Bell Wireline operating revenue	7,912		2,610		2,630		2,672		10,948		2,822		2,694		2,685		2,747
Operating costs	(4,754	)	(1,567	)	(1,559	)	(1,628	)	(6,854	)	(1,803	)	(1,668	)	(1,640	)	(1,743	)
EBITDA	3,158		1,043		1,071		1,044		4,094		1,019		1,026		1,045		1,004
EBITDA Margin	*39.9*	%	*40.0*	%	40.7	%	39.1	%	37.4	%	36.1	%	38.1	%	38.9	%	36.5	%

Capital expenditures	1,326		474		450		402		2,019		646		521		464		388
Capital intensity	*16.8*	%	*18.2*	%	17.1	%	15.0	%	18.4	%	22.9	%	19.3	%	17.3	%	14.1	%

Local
Network access services (NAS)
Residential	3,365,854		3,365,854		3,461,121		3,544,600		3,608,887		3,608,887		3,645,437		3,713,920		3,810,912
Business	2,839,482		2,839,482		2,854,844		2,871,862		2,866,818		2,866,818		2,894,440		2,918,126		2,950,281
Total	6,205,336		6,205,336		6,315,965		6,416,462		6,475,705		6,475,705		6,539,877		6,632,046		6,761,193
Network access service net (losses)/activations
Residential	(243,033	)	(95,267	)	(83,479	)	(64,287	)	(277,643	)	(36,550	)	(68,483	)	(96,992	)	(75,618	)
Business	(27,336	)	(15,362	)	(17,018	)	5,044		(107,674	)	(27,622	)	(23,686	)	(32,155	)	(24,211	)
Total	(270,369	)	(110,629	)	(100,497	)	(59,243	)	(385,317	)	(64,172	)	(92,169	)	(129,147	)	(99,829	)
Internet
High Speed Internet net activations	14,335		(101	)	1,275		13,161		40,335		12,099		21,668		(3,899	)	10,467
High Speed Internet subscribers EOP	2,111,661		2,111,661		2,111,762		2,110,487		2,097,326		2,097,326		2,085,227		2,063,559		2,067,458
Video
Net subscriber activations	39,772		26,037		6,072		7,663		71,221		23,019		18,538		9,775		19,889
Total subscribers EOP	2,059,870		2,059,870		2,033,833		2,027,761		2,020,098		2,020,098		1,997,079		1,978,541		1,968,766
ARPU ($/month)	75.16		74.45		76.22		75.76		73.49		74.79		73.34		73.43		72.60
Churn (%) (average per month)	1.6	%	1.8	%	1.7	%	1.4	%	1.4	%	1.5	%	1.6	%	1.3	%	1.1	%

BCE Inc. Supplementary Financial Information – Third Quarter 2011 Page 7

Bell Wireless ⁽²⁾

($ millions of Canadian dollars, except where otherwise indicated) (unaudited)	Q3 2011		Q3 2010		% change		YTD 2011		YTD 2010		% change
Bell Wireless
Revenue
Service	1,228		1,157		6.1	%	3,547		3,321		6.8	%
Product	102		103		(1.0	%)	293		273		7.3	%
Total external Bell Wireless revenues	1,330		1,260		5.6	%	3,840		3,594		6.8	%
Inter-segment	9		8		12.5	%	26		23		13.0	%
Total Bell Wireless operating revenues	1,339		1,268		5.6	%	3,866		3,617		6.9	%
Operating costs	(858	)	(801	)	(7.1	%)	(2,464	)	(2,283	)	(7.9	%)
EBITDA	481		467		3.0	%	1,402		1,334		5.1	%
EBITDA margin (Total revenues)	35.9	%	36.8	%	(0.9	) pts	*36.3*	%	36.9	%	(0.6	) pts
EBITDA margin (Service revenues)	39.2	%	40.4	%	(1.2	) pts	*39.5*	%	40.2	%	(0.7	) pts

Capital expenditures	150		123		(22.0	%)	431		260		(65.8	%)
Capital intensity	*11.2*	%	9.7	%	(1.5	) pts	*11.1*	%	7.2	%	(3.9	) pts
Wireless gross activations	525,780		537,295		(2.1	%)	1,424,479		1,446,768		(1.5	%)
Postpaid	372,346		368,154		1.1	%	1,013,648		933,045		8.6	%
Wireless net activations	85,749		137,880		(37.8	%)	127,548		291,964		(56.3	%)
Postpaid	126,854		159,465		(20.5	%)	301,811		343,431		(12.1	%)
Wireless subscribers EOP	7,369,596		7,125,266		3.4	%	7,369,596		7,125,266		3.4	%
Postpaid	5,843,180		5,384,661		8.5	%	5,843,180		5,384,661		8.5	%
Average revenue per unit (ARPU)($/month)	55.01		53.54		2.7	%	53.23		51.93		2.5	%
Prepaid	17.81		18.85		(5.5	%)	16.65		18.02		(7.6	%)
Postpaid	64.98		65.04		(0.1	%)	63.57		63.50		0.1	%
Churn (%) (average per month)	2.0	%	1.9	%	(0.1	) pts	2.0	%	1.9	%	(0.1	) pts
Prepaid	3.9	%	3.4	%	(0.5	) pts	3.8	%	3.4	%	(0.4	) pts
Postpaid	1.5	%	1.4	%	(0.1	) pts	1.5	%	1.3	%	(0.2	) pts
Usage per subscriber (min/month)	291		280		3.9	%	278		272		2.2	%
Cost of acquisition (COA) ⁽⁹⁾($/sub) ^(A)	392		355		(10.4	%)	387		338		(14.5	%)

(A)	In Q1 2011, we changed our methodology for calculating Wireless COA to better align with Canadian industry practice. All prior periods have been restated for comparability.

BCE Inc. Supplementary Financial Information – Third Quarter 2011 Page 8

Bell Wireless - Historical Trend

($ millions of Canadian dollars, except where otherwise indicated) (unaudited)	YTD 2011		Q3 11		Q2 11		Q1 11		Total 2010		Q4 10		Q3 10		Q2 10		Q1 10
Bell Wireless
Revenue
Service	3,547		1,228		1,174		1,145		4,469		1,148		1,157		1,111		1,053
Product	293		102		92		99		407		134		103		84		86
Total external Bell Wireless revenues	3,840		1,330		1,266		1,244		4,876		1,282		1,260		1,195		1,139
Inter-segment	26		9		10		7		30		7		8		8		7
Total Bell Wireless operating revenues	3,866		1,339		1,276		1,251		4,906		1,289		1,268		1,203		1,146
Operating costs	(2,464	)	(858	)	(816	)	(790	)	(3,188	)	(905	)	(801	)	(747	)	(735	)
EBITDA	1,402		481		460		461		1,718		384		467		456		411
EBITDA margin (Total revenues)	*36.3*	%	*35.9*	%	36.1	%	36.9	%	35.0	%	29.8	%	36.8	%	37.9	%	35.9	%
EBITDA margin (Service revenues)	*39.5*	%	*39.2*	%	39.2	%	40.3	%	38.4	%	33.4	%	40.4	%	41.0	%	39.0	%

Capital expenditures	431		150		168		113		485		225		123		84		53
Capital intensity	*11.1*	%	*11.2*	%	13.2	%	9.0	%	9.9	%	17.5	%	9.7	%	7.0	%	4.6	%
Wireless gross activations	1,424,479		525,780		474,900		423,799		1,999,482		552,714		537,295		480,639		428,834
Postpaid	1,013,648		372,346		341,645		299,657		1,332,086		399,041		368,154		300,579		264,312
Wireless net activations	127,548		85,749		36,507		5,292		408,746		116,782		137,880		98,459		55,625
Postpaid	301,811		126,854		94,309		80,648		500,139		156,708		159,465		102,754		81,212
Wireless subscribers EOP	7,369,596		7,369,596		7,283,847		7,247,340		7,242,048		7,242,048		7,125,266		6,987,386		6,888,927
Postpaid	5,843,180		5,843,180		5,716,326		5,622,017		5,541,369		5,541,369		5,384,661		5,225,196		5,122,442
Average revenue per unit (ARPU)($/month)	53.23		55.01		52.99		51.68		52.03		52.34		53.54		52.12		50.07
Prepaid	16.65		17.81		16.88		15.36		17.76		16.96		18.85		18.35		16.87
Postpaid	63.57		64.98		63.18		62.51		63.49		63.47		65.04		63.66		61.72
Churn (%)(average per month)	2.0	%	2.0	%	2.0	%	1.9	%	1.9	%	2.0	%	1.9	%	1.8	%	1.8	%
Prepaid	3.8	%	3.9	%	3.7	%	3.7	%	3.5	%	3.6	%	3.4	%	3.4	%	3.4	%
Postpaid	1.5	%	1.5	%	1.5	%	1.4	%	1.4	%	1.5	%	1.4	%	1.3	%	1.2	%
Usage per subscriber (min/month)	278		291		282		256		274		277		280		284		259
Cost of acquisition (COA)($/sub) ^(A)	387		392		400		366		358		411		355		335		321

(A)	In Q1 2011, we changed our methodology for calculating Wireless COA to better align with Canadian industry practice. All prior periods have been restated for comparability.

BCE Inc. Supplementary Financial Information – Third Quarter 2011 Page 9

BCE Inc.
Net debt and other information

BCE Inc. - Net debt and preferreds

At September 30, 2011			BCE Inc.
($ millions of Canadian dollars, except where otherwise indicated) (unaudited)
			Bell
	Bell		Aliant		BCE Inc.
Debt due within one year	1,833		411		2,244
Long-term debt	10,072		2,653		12,725
Preferred shares - BCE ^(A)	1,558		-		1,558
Cash and cash equivalents	(1,085	)	(19	)	(1,104	)
Net debt	12,378		3,045		15,423

Bell - Net debt and preferreds
($ millions of Canadian dollars, except where otherwise indicated) (unaudited)
	September 30		June 30		March 31		Dec. 31
	2011		2011		2011		2010

Debt due within one year	1,833		1,843		2,279		1,766
Long-term debt	10,072		10,042		9,189		8,221
Preferred shares - BCE ^(A)	1,558		1,385		1,385		1,385
Cash and cash equivalents	(1,085	)	(263	)	(2,147	)	(749	)
Net Debt	12,378		13,007		10,706		10,623

Net Debt / Adjusted EBITDA ^(B)	1.93		2.06		1.73		1.74
Adjusted EBITDA ^(B)/ Net interest, excluding interest on employee benefit obligations and interest expense on fund unit liability and including 50% of preferred dividends	9.45		9.93		10.46		10.67

Bell Media - Proportionate Information
($ millions of Canadian dollars, except where otherwise indicated) (unaudited)
	YTD 2011	Q3 2011	Q2 2011
Proportionate Net Debt	220	220	275
Proportionate EBITDA	159	56	103

Cash Flow Information
($ millions of Canadian dollars, except where otherwise indicated) (unaudited)	Q3		Q3						YTD		YTD
	2011		2010		$ change		% change		2011		2010		$ change		% change
Free Cash Flow (FCF)
Cash from operating activities, excluding acquisition costs paid	1,651		1,402		249		17.8	%	3,453		3,463		(10	)	(0.3	%)
Capital expenditures	(652	)	(644	)	(8	)	(1.2	%)	(1,812	)	(1,633	)	(179	)	(11.0	%)
Dividends paid on preferred shares	(31	)	(25	)	(6	)	(24.0	%)	(87	)	(80	)	(7	)	(8.8	%)
Dividends/distributions paid by subsidiaries to non-controlling interest	(11	)	-		(11	)	n.m.		(23	)	-		(23	)	n.m.
Bell Aliant distributions to BCE	48		73		(25	)	(34.2	%)	166		218		(52	)	(23.9	%)
FCF	1,005		806		199		24.7	%	1,697		1,968		(271	)	(13.8	%)

Cash Flow Information - Historical Trend
($ millions of Canadian dollars, except where otherwise indicated) (unaudited)	YTD		Q3		Q2		Q1		Total		Q4		Q3		Q2		Q1
	2011		2011		2011		2011		2010		2010		2010		2010		2010
Free Cash Flow (FCF)
Cash from operating activities, excluding acquisition costs paid	3,453		1,651		1,065		737		3,758		295		1,402		1,105		956
Capital expenditures	(1,812	)	(652	)	(645	)	(515	)	(2,504	)	(871	)	(644	)	(548	)	(441	)
Dividends paid on preferred shares	(87	)	(31	)	(28	)	(28	)	(108	)	(28	)	(25	)	(27	)	(28	)
Dividends/distributions paid by subsidiaries to non-controlling interest	(23	)	(11	)	(12	)	-		-		-		-		-		-
Bell Aliant distributions to BCE	166		48		47		71		291		73		73		72		73
FCF	1,697		1,005		427		265		1,437		(531	)	806		602		560

(A)	Net debt includes 50% of preferred shares.

(B)	Adjusted EBITDA is defined as EBITDA including dividends / distributions from Bell Aliant to BCE and is based on trailling 12 months data.

BCE Inc. Supplementary Financial Information – Third Quarter 2011 Page 10

BCE Inc.
Consolidated Statements of Financial Position Data

($ millions of Canadian dollars, except where otherwise indicated) (unaudited)	September 30 2011		June 30 2011		March 31 2011		December 31 2010
*ASSETS*
Current assets
Cash	132		27		2,069		129
Cash equivalents	972		249		103		642
Trade and other receivables	2,835		3,211		2,580		2,885
Current tax receivable	80		87		97		139
Inventory	487		414		424		431
Prepaid expenses	347		404		450		224
Other current assets	158		110		106		205
Total current assets	5,011		4,502		5,829		4,655
Non-current assets
Property, plant and equipment	18,517		18,330		17,582		17,775
Intangible assets	8,027		8,116		6,288		6,201
Deferred tax assets	424		451		437		501
Investments in associates and joint ventures	308		308		313		303
Other non-current assets	611		550		669		652
Goodwill	7,253		7,253		5,806		5,806
Total non-current assets	35,140		35,008		31,095		31,238
Total assets	40,151		39,510		36,924		35,893
*LIABILITIES*
Current liabilities
Trade and other payables	3,657		3,595		3,232		3,815
Interest payable	160		134		135		143
Dividends payable	417		414		383		356
Current tax liabilities	142		139		78		37
Other current liabilities	13		46		51		33
Debt due within one year	2,244		2,239		3,049		2,570
Total current liabilities	6,633		6,567		6,928		6,954
Non-current liabilities
Long-term debt	12,725		12,699		11,556		10,581
Fund unit liability	-		-		-		3,060
Deferred tax liabilities	618		784		579		526
Employee benefit obligation	4,348		3,142		2,786		3,302
Other non-current liabilities	1,383		1,573		1,280		1,302
Total non-current liabilities	19,074		18,198		16,201		18,771
Total liabilities	25,707		24,765		23,129		25,725

Equity
Equity attributable to owners
Preferred shares	3,115		2,770		2,770		2,770
Common shares	13,585		13,568		12,745		12,691
Contributed surplus	2,530		2,531		2,536		2,579
Accumulated other comprehensive (loss) income	32		(43	)	48		66
Deficit	(5,627	)	(4,988	)	(4,970	)	(7,952	)
Total equity attributable to owners	13,635		13,838		13,129		10,154
Non-controlling interest	809		907		666		14
Total equity	14,444		14,745		13,795		10,168
Total liabilities and equity	40,151		39,510		36,924		35,893
Number of common shares outstanding	778.0		777.5		754.1		752.3

BCE Inc. Supplementary Financial Information – Third Quarter 2011 Page 11

BCE Inc.
Consolidated Cash Flow Data

($ millions of Canadian dollars, except where otherwise indicated) (unaudited)		Q3 2011			Q3 2010			$ change			YTD 2011			YTD 2010			$ change
Net earnings		736			482			254			2,001			1,846			155
Adjustments to reconcile net earnings to cash flows from operating activities
Depreciation and amortization of intangible assets		808			781			27			2,419			2,325			94
Net employee benefit plans cost		50			72			(22	)		146			221			(75	)
Severance, acquisition and other costs		130			129			1			410			176			234
Net interest expense		207			260			(53	)		608			784			(176	)
Gains on investments		-			-			-			(89	)		(135	)		46
Income taxes		80			98			(18	)		473			473			-
Contributions to employee pension plans		(91	)		(115	)		24			(530	)		(414	)		(116	)
Payments under other employee future benefit plans		(25	)		(25	)		-			(76	)		(73	)		(3	)
Severance and other costs paid		(37	)		(35	)		(2	)		(343	)		(178	)		(165	)
Acquisition costs paid		(7	)		(6	)		(1	)		(42	)		(12	)		(30	)
Interest paid		(178	)		(245	)		67			(561	)		(800	)		239
Income taxes paid (net of refunds)		(24	)		(15	)		(9	)		(57	)		(75	)		18
Operating assets and liabilities		267			170			97			(328	)		(262	)		(66	)
Cash flows from operating activities		1,916			1,551			365			4,031			3,876			155
Bell Aliant dividends/distributions paid to BCE		48			73			(25	)		166			218			(52	)
Capital expenditures		(814	)		(757	)		(57	)		(2,248	)		(1,964	)		(284	)
Cash dividends paid on preferred shares		(31	)		(25	)		(6	)		(87	)		(80	)		(7	)
Cash dividends/distributions paid by subsidiaries to non-controlling interest		(75	)		-			(75	)		(243	)		-			(243	)
Acquisition costs paid		7			6			1			42			12			30
Bell Aliant Free Cash Flow		(46	)		(42	)		(4	)		36			(94	)		130
Free Cash Flow ⁽⁴⁾		1,005			806			199			1,697			1,968			(271	)
Bell Aliant free cash flow, excluding dividends/distributions paid		(2	)		(31	)		29			(202	)		(124	)		(78	)
Business acquisitions		-			-			-			(680	)		13			(693	)
Acquisition costs paid		(7	)		(6	)		(1	)		(42	)		(12	)		(30	)
Business dispositions		-			-			-			2			8			(6	)
Increase in investments		(2	)		(7	)		5			(6	)		(40	)		34
Decrease in investments		2			6			(4	)		50			139			(89	)
Other investing activities		1			-			1			4			6			(2	)
Increase (decrease) in notes payable and bank advances		106			47			59			(24	)		146			(170	)
Increase (reduction) in trade receivables securitization program		-			4			(4	)		(350	)		(15	)		(335	)
Issue of long-term debt		3			350			(347	)		2,306			350			1,956
Repayment of long-term debt		(193	)		(404	)		211			(2,008	)		(635	)		(1,373	)
Cash dividends paid on common shares		(402	)		(329	)		(73	)		(1,117	)		(972	)		(145	)
Issue of common shares		15			15			-			115			28			87
Repurchase of common shares		-			(125	)		125			-			(375	)		375
Issue of preferred shares		345			-			345			345			-			345
Issue of equity securities by subsidiaries to non-controlling interest		-			-			-			288			-			288
Other financing activities		(43	)		(67	)		24			(45	)		12			(57	)
		(177	)		(547	)		370			(1,364	)		(1,471	)		107
Net increase in cash and cash equivalents		828			259			569			333			497			(164	)
Cash and cash equivalents at beginning of period		276			922			(646	)		771			684			87
Cash and cash equivalents at end of period		1,104			1,181			(77	)		1,104			1,181			(77	)

Other information
Cash flow per share ⁽¹⁰⁾	$	1.43		$	1.17		$	0.26		$	2.32		$	2.88		$	(0.56	)
Annualized cash flow yield ⁽¹¹⁾		3.8	%		7.8	%		(4.0	) pts		3.8	%		7.8	%		(4.0	) pts

BCE Inc. Supplementary Financial Information – Third Quarter 2011 Page 12

BCE Inc.
Consolidated Cash Flow Data - Historical Trend

($ millions of Canadian dollars, except where otherwise indicated) (unaudited)		YTD 2011			Q3 11			Q2 11			Q1 11			Total 2010			Q4 10			Q3 10			Q2 10			Q1 10
Net earnings		2,001			736			683			582			2,190			344			482			630			734
Adjustments to reconcile net earnings to cash flows from operating activities
Depreciation and amortization of intangible assets		2,419			808			821			790			3,125			800			781			778			766
Net employee benefit plans cost		146			50			49			47			294			73			72			73			76
Severance, acquisition and other costs		410			130			219			61			262			86			129			15			32
Net interest expense		608			207			212			189			1,049			265			260			262			262
Gains on investments		(89	)		-			(89	)		-			(135	)		-			-			(10	)		(125	)
Income taxes		473			80			194			199			632			159			98			172			203
Contributions to employee pension plans		(530	)		(91	)		(85	)		(354	)		(1,315	)		(901	)		(115	)		(144	)		(155	)
Payments under other employee future benefit plans		(76	)		(25	)		(27	)		(24	)		(98	)		(25	)		(25	)		(24	)		(24	)
Severance and other costs paid		(343	)		(37	)		(59	)		(247	)		(238	)		(60	)		(35	)		(49	)		(94	)
Acquisition costs paid		(42	)		(7	)		(31	)		(4	)		(24	)		(12	)		(6	)		(2	)		(4	)
Interest paid		(561	)		(178	)		(216	)		(167	)		(1,092	)		(292	)		(245	)		(305	)		(250	)
Income taxes paid (net of refunds)		(57	)		(24	)		(25	)		(8	)		(129	)		(54	)		(15	)		(36	)		(24	)
Operating assets and liabilities		(328	)		267			(265	)		(330	)		(154	)		108			170			(39	)		(393	)
Cash flows from operating activities		4,031			1,916			1,381			734			4,367			491			1,551			1,321			1,004
Bell Aliant dividends/distributions paid to BCE		166			48			47			71			291			73			73			72			73
Capital expenditures		(2,248	)		(814	)		(800	)		(634	)		(2,998	)		(1,034	)		(757	)		(672	)		(535	)
Cash dividends paid on preferred shares		(87	)		(31	)		(28	)		(28	)		(108	)		(28	)		(25	)		(27	)		(28	)
Cash dividends/distributions paid by subsidiaries to non-controlling interest		(243	)		(75	)		(77	)		(91	)		-			-			-			-			-
Acquisition costs paid		42			7			31			4			24			12			6			2			4
Bell Aliant Free Cash Flow		36			(46	)		(127	)		209			(139	)		(45	)		(42	)		(94	)		42
Free Cash Flow		1,697			1,005			427			265			1,437			(531	)		806			602			560
Bell Aliant free cash flow, excluding dividends/distributions paid		(202	)		(2	)		80			(280	)		(152	)		(28	)		(31	)		22			(115	)
Business acquisitions		(680	)		-			(680	)		-			(60	)		(73	)		-			4			9
Acquisition costs paid		(42	)		(7	)		(31	)		(4	)		(24	)		(12	)		(6	)		(2	)		(4	)
Business dispositions		2			-			-			2			8			-			-			8			-
Increase in investments		(6	)		(2	)		(2	)		(2	)		(44	)		(4	)		(7	)		(25	)		(8	)
Decrease in investments		50			2			45			3			139			-			6			123			10
Other investing activities		4			1			(1	)		4			7			1			-			3			3
(Decrease) increase in notes payable and bank advances		(24	)		106			(656	)		526			250			104			47			(9	)		108
(Reduction) increase in trade receivables securitization program		(350	)		-			(348	)		(2	)		(37	)		(22	)		4			(19	)		-
Issue of long-term debt		2,306			3			1,301			1,002			1,366			1,016			350			-			-
Repayment of long-term debt		(2,008	)		(193	)		(1,739	)		(76	)		(956	)		(321	)		(404	)		(175	)		(56	)
Cash dividends paid on common shares		(1,117	)		(402	)		(371	)		(344	)		(1,318	)		(346	)		(329	)		(333	)		(310	)
Issue of common shares		115			15			51			49			39			11			15			12			1
Repurchase of common shares		-			-			-			-			(500	)		(125	)		(125	)		(125	)		(125	)
Issue of preferred shares		345			345			-			-			-			-			-			-			-
Issue of equity securities by subsidiaries to non-controlling interest		288			-			-			288			-			-			-			-			-
Other financing activities		(45	)		(43	)		28			(30	)		(68	)		(80	)		(67	)		90			(11	)
		(1,364	)		(177	)		(2,323	)		1,136			(1,350	)		121			(547	)		(426	)		(498	)
Net increase (decrease) in cash and cash equivalents		333			828			(1,896	)		1,401			87			(410	)		259			176			62
Cash and cash equivalents at beginning of period		771			276			2,172			771			684			1,181			922			746			684
Cash and cash equivalents at end of period		1,104			1,104			276			2,172			771			771			1,181			922			746

Other information
Cash flow per share	$	2.32		$	1.43		$	0.76		$	0.13		$	2.29		$	(0.59	)	$	1.17		$	0.98		$	0.73
Annualized cash flow yield		3.8	%		3.8	%		3.3	%		4.3	%		5.4	%		5.4	%		7.8	%		7.7	%		7.7	%

BCE Inc. Supplementary Financial Information – Third Quarter 2011 Page 13

Accompanying Notes

(1)	Throughout this report, BCE means BCE Inc., its subsidiaries, joint ventures and associates; Bell means our Bell Wireline, Bell Wireless and Bell Media segments on an aggregate basis; and Bell Aliant means Bell Aliant Inc. and its subsidiaries.
(2)	We report our results of operations in four segments: Bell Wireline, Bell Wireless, Bell Media and Bell Aliant. Our reporting structure reflects how we manage our business and how we classify our operations for planning and measuring performance. In the second quarter of 2011, BCE acquired the remaining 85% of CTV Inc. (CTV) common shares that it did not already own. CTV is a media company that holds specialty television, digital media, conventional TV and radio broadcasting assets. CTV is reported as a new segment, Bell Media. As at the acquisition date, we transferred certain assets from our wireline business segment to this new segment. In the first quarter of 2011, Bell acquired xwave, a division of Bell Aliant, specializing in IT professional services and advanced technology solutions. As a result, we have restated prior period results for Bell Wireline and Bell Aliant to reflect the change of ownership in xwave between Bell and Bell Aliant. Our reportable segments and consolidated results did not change as a result of this restatement.
(3)	EBITDA We define EBITDA as operating revenues less operating costs, as shown in the consolidated income statements. We use EBITDA to evaluate the performance of our businesses as it reflects their ongoing profitability. EBITDA also is used as a component in the determination of short-term incentive compensation for all management employees. EBITDA is referred to as an additional GAAP measure because it is displayed on the face of our income statements.
(4)	Non-GAAP Financial Measures Adjusted net earnings and Adjusted earnings per share (EPS) The terms Adjusted net earnings and Adjusted EPS do not have any standardized meaning under IFRS. Therefore, they are unlikely to be comparable to similar measures presented by other companies. We define Adjusted net earnings as net earnings attributable to common shareholders before severance, acquisition and other costs, and net (gains) losses on investments. For 2010, Adjusted net earnings also excludes the fair value adjustments on the fund unit liability and adjusts earnings to reflect the interest on the fund unit liability as non-controlling interest. We define Adjusted EPS as Adjusted net earnings per BCE Inc. common share. We use Adjusted net earnings and Adjusted EPS, among other measures, to assess the operating performance of our ongoing businesses without the effects of severance, acquisition and other costs, and net (gains) losses on investments, net of tax and non-controlling interest. We exclude these items because they affect the comparability of our financial results and could potentially distort the analysis of trends in business performance. Excluding these items does not imply they are non-recurring. The most comparable IFRS financial measures are net earnings attributable to common shareholders and earnings per share.

BCE Inc. Supplementary Financial Information – Third Quarter 2011 Page 14

Accompanying Notes

	Free Cash Flow The term free cash flow does not have any standardized meaning under IFRS. Therefore, it is unlikely to be comparable to similar measures presented by other companies. We define free cash flow as cash flows from operating activities, excluding acquisition costs paid, and dividends/distributions received from Bell Aliant less capital expenditures, preferred share dividends, dividends/distributions paid by subsidiaries to non-controlling interest and Bell Aliant free cash flow. 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 reinvest in our company. We present free cash flow consistently from period to period, which allows us to compare our financial performance on a consistent basis. We believe that certain investors and analysts use free cash flow to value a business and its underlying assets. The most comparable IFRS financial measure is cash from operating activities.
(5)	EBITDA margin is calculated as follows: EBITDA Operating revenues
(6)	Capital Intensity is calculated as follows: Capital expenditures Operating revenues
(7)	Average revenue per unit (ARPU) represents the measurement of the average revenue generated by each unit, expressed as a rate per month for the year.
(8)	Churn is the rate at which existing subscribers cancel their services. Churn is calculated as the number of subscribers disconnected divided by the average subscriber base.
(9)	Cost of acquisition (COA) is also referred to as subscriber acquisition costs. This measure is expressed per gross activation. It includes costs associated with acquiring a customer such as hardware subsidies, marketing and distribution costs.
(10)	Cash flow per share is calculated as follows: Cash flow from operating activities (excludes interest on fund unit liability) less capital expenditures Average number of common shares outstanding
(11)	Annualized cash flow yield is calculated as follows: Trailing 12 month free cash flow Number of common shares outstanding at end of period multiplied by share price at end of period

BCE Inc. Supplementary Financial Information – Third Quarter 2011 Page 15