Supplementary Financial Information

EX-99.2 3 supp_q113.htm SUPPLEMENTARY FINANCIAL INFORMATION - FIRST QUARTER 2013 Supplementary Financial Information

EXHIBIT 99.2

BCE ⁽¹⁾
Consolidated Operational Data ⁽²⁾

		Q1			Q1
($ millions of Canadian dollars, except per share amounts) (unaudited)		2013			2012			$ change		% change
Operating revenues		4,919			4,910			9		0.2	%
Operating costs ^(A)		(2,880	)		(2,915	)		35		1.2	%
Post-employment benefit plans service cost		(77	)		(66	)		(11	)	(16.7	%)
EBITDA ⁽³⁾		1,962			1,929			33		1.7	%
EBITDA margin ⁽⁴⁾		*39.9*	%		39.3	%				0.6	pts
Severance, acquisition and other costs		(33	)		(19	)		(14	)	(73.7	%)
Depreciation		(675	)		(646	)		(29	)	(4.5	%)
Amortization		(163	)		(181	)		18		9.9	%
Finance costs
Interest expense		(221	)		(207	)		(14	)	(6.8	%)
Interest on post-employment benefit obligations		(37	)		(33	)		(4	)	(12.1	%)
Other income (expense)		80			(21	)		101		n.m.
Earnings before income taxes		913			822			91		11.1	%
Income taxes		(241	)		(191	)		(50	)	(26.2	%)
Net earnings		672			631			41		6.5	%
Net earnings attributable to:
Common shareholders		566			531			35		6.6	%
Preferred shareholders		33			35			(2	)	(5.7	%)
Non-controlling interest		73			65			8		12.3	%
Net earnings		672			631			41		6.5	%
Net earnings per common share - basic	$	0.73		$	0.69		$	0.04		5.8	%
Net earnings per common share - diluted	$	0.73		$	0.69		$	0.04		5.8	%
Dividends per common share	$	0.5825		$	0.5425		$	0.040		7.4	%
Average number of common shares outstanding - basic (millions)		775.7			774.3
Average number of common shares outstanding - diluted (millions)		776.3			774.7
Number of common shares outstanding (millions)		775.9			773.6

Adjusted Net Earnings and EPS
Net earnings attributable to common shareholders		566			531			35		6.6	%
Severance, acquisition and other costs		23			14			9		64.3	%
Net gains on investments		(2	)		(8	)		6		75.0	%
Premium on early redemption of debt		12			-			12		n.m.
Adjusted net earnings attributable to common shareholders ⁽³⁾		599			537			62		11.5	%
Impact on net earnings per share	$	0.04		$	-		$	0.04		n.m.

Adjusted EPS ⁽³⁾	$	0.77		$	0.69		$	0.08		11.6	%

(A)	Excludes post-employment benefit plans service cost.

n.m. : not meaningful

BCE Supplementary Financial Information – First Quarter 2013 Page 2

BCE
Consolidated Operational Data - Historical Trend

					Total
($ millions of Canadian dollars, except per share amounts) (unaudited)		Q1 13			2012			Q4 12			Q3 12			Q2 12			Q1 12
Operating revenues		4,919			19,978			5,161			4,982			4,925			4,910
Operating costs ^(A)		(2,880	)		(11,865	)		(3,205	)		(2,926	)		(2,819	)		(2,915	)
Post-employment benefit plans service cost		(77	)		(225	)		(60	)		(37	)		(62	)		(66	)
EBITDA		1,962			7,888			1,896			2,019			2,044			1,929
*EBITDA margin*		*39.9*	%		39.5	%		36.7	%		40.5	%		41.5	%		39.3	%
Severance, acquisition and other costs		(33	)		(133	)		(69	)		(25	)		(20	)		(19	)
Depreciation		(675	)		(2,678	)		(693	)		(673	)		(666	)		(646	)
Amortization		(163	)		(714	)		(175	)		(180	)		(178	)		(181	)
Finance costs
Interest expense		(221	)		(865	)		(224	)		(225	)		(209	)		(207	)
Interest on post-employment benefit obligations		(37	)		(131	)		(32	)		(33	)		(33	)		(33	)
Other income (expense)		80			269			243			(8	)		55			(21	)
Earnings before income taxes		913			3,636			946			875			993			822
Income taxes		(241	)		(760	)		(181	)		(231	)		(157	)		(191	)
Net earnings		672			2,876			765			644			836			631
Net earnings attributable to:
Common shareholders		566			2,456			666			527			732			531
Preferred shareholders		33			139			34			36			34			35
Non-controlling interest		73			281			65			81			70			65
Net earnings		672			2,876			765			644			836			631
Net earnings per common share - basic	$	0.73		$	3.17		$	0.86		$	0.68		$	0.94		$	0.69
Net earnings per common share - diluted	$	0.73		$	3.17		$	0.86		$	0.68		$	0.94		$	0.69
Dividends per common share	$	0.5825		$	2.2200		$	0.5675		$	0.5675		$	0.5425		$	0.5425
Average number of common shares outstanding - basic (millions)		775.7			774.3			775.0			774.2			773.7			774.3
Average number of common shares outstanding - diluted (millions)		776.3			774.6			775.4			774.8			774.0			774.7
Number of common shares outstanding (millions)		775.9			775.4			775.4			774.6			773.9			773.6

Adjusted Net Earnings and EPS
Net earnings attributable to common shareholders		566			2,456			666			527			732			531
Severance, acquisition and other costs		23			94			46			19			15			14
Net gains on investments		(2	)		(256	)		(248	)		-			-			(8	)
Premium on early redemption of debt		12			-			-			-			-			-
Adjusted net earnings attributable to common shareholders		599			2,294			464			546			747			537
Impact on net earnings per share	$	0.04		$	(0.21	)	$	(0.26	)	$	0.02		$	0.03		$	-

Adjusted EPS	$	0.77		$	2.96		$	0.60		$	0.70		$	0.97		$	0.69

(A)	Excludes post-employment benefit plans service cost.

BCE Supplementary Financial Information – First Quarter 2013 Page 3

BCE ⁽¹⁾
Segmented Data ⁽²⁾

	Q1		Q1
($ millions of Canadian dollars, except where otherwise indicated) (unaudited)	2013		2012		$ change		% change
Revenues
Bell Wireline	2,508		2,579		(71	)	(2.8	%)
Bell Wireless	1,409		1,326		83		6.3	%
Bell Media	513		512		1		0.2	%
Inter-segment eliminations	(82	)	(83	)	1		1.2	%
Total Bell	4,348		4,334		14		0.3	%
Bell Aliant	684		682		2		0.3	%
Inter-segment eliminations	(113	)	(106	)	(7	)	(6.6	%)
Total BCE	4,919		4,910		9		0.2	%
Operating costs
Bell Wireline	(1,550	)	(1,576	)	26		1.6	%
Bell Wireless	(824	)	(802	)	(22	)	(2.7	%)
Bell Media	(415	)	(431	)	16		3.7	%
Inter-segment eliminations	82		83		(1	)	(1.2	%)
Total Bell	(2,707	)	(2,726	)	19		0.7	%
Bell Aliant	(363	)	(361	)	(2	)	(0.6	%)
Inter-segment eliminations	113		106		7		6.6	%
Total BCE	(2,957	)	(2,981	)	24		0.8	%
EBITDA
Bell Wireline	958		1,003		(45	)	(4.5	%)
Margin	*38.2*	%	38.9	%			(0.7	) pts
Bell Wireless	585		524		61		11.6	%
Margin	*41.5*	%	39.5	%			2.0	pts
Bell Media	98		81		17		21.0	%
Margin	*19.1*	%	15.8	%			3.3	pts
Total Bell	1,641		1,608		33		2.1	%
Margin	*37.7*	%	37.1	%			0.6	pts
Bell Aliant	321		321		-		0.0	%
Margin	*46.9*	%	47.1	%			(0.2	) pts
Total BCE	1,962		1,929		33		1.7	%
Margin	*39.9*	%	39.3	%			0.6	pts
Capital expenditures
Bell Wireline	460		532		72		13.5	%
Capital Intensity ⁽⁵⁾	*18.3*	%	20.6	%			2.3	pts
Bell Wireless	122		136		14		10.3	%
Capital Intensity	*8.7*	%	10.3	%			1.6	pts
Bell Media	12		12		-		0.0	%
Capital Intensity	*2.3*	%	2.3	%			0.0	pts
Total Bell	594		680		86		12.6	%
Capital Intensity	*13.7*	%	15.7	%			2.0	pts
Bell Aliant	128		137		9		6.6	%
Capital Intensity	*18.7*	%	20.1	%			1.4	pts
Total BCE	722		817		95		11.6	%
Capital Intensity	*14.7*	%	16.6	%			1.9	pts

BCE Supplementary Financial Information – First Quarter 2013 Page 4

BCE
Segmented Data - Historical Trend

			Total
($ millions of Canadian dollars, except where otherwise indicated) (unaudited)	Q1 13		2012		Q4 12		Q3 12		Q2 12		Q1 12
Revenues
Bell Wireline	2,508		10,220		2,608		2,505		2,528		2,579
Bell Wireless	1,409		5,586		1,458		1,434		1,368		1,326
Bell Media	513		2,183		591		546		534		512
Inter-segment eliminations	(82	)	(344	)	(80	)	(92	)	(89	)	(83	)
Total Bell	4,348		17,645		4,577		4,393		4,341		4,334
Bell Aliant	684		2,761		694		698		687		682
Inter-segment eliminations	(113	)	(428	)	(110	)	(109	)	(103	)	(106	)
Total BCE	4,919		19,978		5,161		4,982		4,925		4,910
Operating costs
Bell Wireline	(1,550	)	(6,300	)	(1,677	)	(1,527	)	(1,520	)	(1,576	)
Bell Wireless	(824	)	(3,471	)	(979	)	(881	)	(809	)	(802	)
Bell Media	(415	)	(1,622	)	(419	)	(389	)	(383	)	(431	)
Inter-segment eliminations	82		344		80		92		89		83
Total Bell	(2,707	)	(11,049	)	(2,995	)	(2,705	)	(2,623	)	(2,726	)
Bell Aliant	(363	)	(1,469	)	(380	)	(367	)	(361	)	(361	)
Inter-segment eliminations	113		428		110		109		103		106
Total BCE	(2,957	)	(12,090	)	(3,265	)	(2,963	)	(2,881	)	(2,981	)
EBITDA
Bell Wireline	958		3,920		931		978		1,008		1,003
Margin	*38.2*	%	38.4	%	35.7	%	39.0	%	39.9	%	38.9	%
Bell Wireless	585		2,115		479		553		559		524
Margin	*41.5*	%	37.9	%	32.9	%	38.6	%	40.9	%	39.5	%
Bell Media	98		561		172		157		151		81
Margin	*19.1*	%	25.7	%	29.1	%	28.8	%	28.3	%	15.8	%
Total Bell	1,641		6,596		1,582		1,688		1,718		1,608
Margin	*37.7*	%	37.4	%	34.6	%	38.4	%	39.6	%	37.1	%
Bell Aliant	321		1,292		314		331		326		321
Margin	*46.9*	%	46.8	%	45.2	%	47.4	%	47.5	%	47.1	%
Total BCE	1,962		7,888		1,896		2,019		2,044		1,929
Margin	*39.9*	%	39.5	%	36.7	%	40.5	%	41.5	%	39.3	%
Capital expenditures
Bell Wireline	460		2,193		561		514		586		532
Capital Intensity	*18.3*	%	21.5	%	21.5	%	20.5	%	23.2	%	20.6	%
Bell Wireless	122		637		177		152		172		136
Capital Intensity	*8.7*	%	11.4	%	12.1	%	10.6	%	12.6	%	10.3	%
Bell Media	12		93		41		22		18		12
Capital Intensity	*2.3*	%	4.3	%	6.9	%	4.0	%	3.4	%	2.3	%
Total Bell	594		2,923		779		688		776		680
Capital Intensity	*13.7*	%	16.6	%	17.0	%	15.7	%	17.9	%	15.7	%
Bell Aliant	128		592		135		144		176		137
Capital Intensity	*18.7*	%	21.4	%	19.5	%	20.6	%	25.6	%	20.1	%
Total BCE	722		3,515		914		832		952		817
Capital Intensity	*14.7*	%	17.6	%	17.7	%	16.7	%	19.3	%	16.6	%

BCE Supplementary Financial Information – First Quarter 2013 Page 5

Bell Wireline^{(1) (2)}

	Q1		Q1
($ millions of Canadian dollars, except where otherwise indicated) (unaudited)	2013		2012		% change
Bell Wireline
Local & access ^(A)	646		693		(6.8	%)
Long distance	184		212		(13.2	%)
Data ^(A)	1,433		1,422		0.8	%
Equipment & other ^(A)	164		172		(4.7	%)
Total external revenues	2,427		2,499		(2.9	%)
Inter-segment revenues	81		80		1.3	%
Total Bell Wireline operating revenues	2,508		2,579		(2.8	%)
Operating costs	(1,550	)	(1,576	)	1.6	%
EBITDA	958		1,003		(4.5	%)
EBITDA Margin	*38.2*	%	38.9	%	(0.7	) pts
Capital expenditures	460		532		13.5	%
Capital Intensity	*18.3*	%	20.6	%	2.3	pts
Local
Network access services (NAS)
Residential	2,856,757		3,205,002		(10.9	%)
Business	2,679,736		2,800,124		(4.3	%)
Total	5,536,493		6,005,126		(7.8	%)
Network access service net (losses)/activations
Residential	(83,557	)	(71,119	)	(17.5	%)
Business	(24,889	)	(25,411	)	2.1	%
Total	(108,446	)	(96,530	)	(12.3	%)
Internet
High Speed Internet net activations (losses)	1,931		12,393		(84.4	%)
High Speed Internet subscribers EOP	2,117,174		2,104,192		0.6	%
TV
Net subscriber activations	13,971		17,623		(20.7	%)
Fibe TV	47,463		33,443		41.9	%
Total subscribers EOP	2,169,954		2,111,675		2.8	%
Fibe TV	295,761		119,847		n.m.

(A)	We have reclassified amounts for the prior period to make them consistent with the presentation for the current period.

BCE Supplementary Financial Information – First Quarter 2013 Page 6

Bell Wireline - Historical Trend

			Total
($ millions of Canadian dollars, except where otherwise indicated) (unaudited)	Q1 13		2012		Q4 12		Q3 12		Q2 12		Q1 12
Bell Wireline
Local & access	646		2,688		649		666		680		693
Long distance	184		801		191		192		206		212
Data	1,433		5,666		1,453		1,391		1,400		1,422
Equipment & other	164		750		237		178		163		172
Total external revenues	2,427		9,905		2,530		2,427		2,449		2,499
Inter-segment revenues	81		315		78		78		79		80
Total Bell Wireline operating revenues	2,508		10,220		2,608		2,505		2,528		2,579
Operating costs	(1,550	)	(6,300	)	(1,677	)	(1,527	)	(1,520	)	(1,576	)
EBITDA	958		3,920		931		978		1,008		1,003
EBITDA Margin	*38.2*	%	38.4	%	35.7	%	39.0	%	39.9	%	38.9	%
Capital expenditures	460		2,193		561		514		586		532
Capital Intensity	*18.3*	%	21.5	%	21.5	%	20.5	%	23.2	%	20.6	%
Local
Network access services (NAS)
Residential ^(A)	2,856,757		2,940,314		2,940,314		3,027,343		3,111,883		3,205,002
Business	2,679,736		2,704,625		2,704,625		2,741,266		2,766,006		2,800,124
Total	5,536,493		5,644,939		5,644,939		5,768,609		5,877,889		6,005,126
Network access service net (losses)/activations
Residential ^(A)	(83,557	)	(335,807	)	(87,029	)	(84,540	)	(93,119	)	(71,119	)
Business	(24,889	)	(120,910	)	(36,641	)	(24,740	)	(34,118	)	(25,411	)
Total	(108,446	)	(456,717	)	(123,670	)	(109,280	)	(127,237	)	(96,530	)
Internet
High Speed Internet net activations (losses)	1,931		32,288		7,143		13,416		(664	)	12,393
High Speed Internet subscribers EOP ^(B)	2,117,174		2,115,243		2,115,243		2,108,100		2,103,528		2,104,192
TV
Net subscriber activations	13,971		69,445		19,218		15,846		16,758		17,623
Fibe TV	47,463		163,127		48,234		42,973		38,477		33,443
Total subscribers EOP ^(B)	2,169,954		2,155,983		2,155,983		2,136,765		2,128,433		2,111,675
Fibe TV	295,761		248,298		248,298		200,064		158,324		119,847

(A)	Residential NAS losses in Q2 2012 were increased by 7,692 lines following a review of customer account records.
(B)	At the beginning of Q3 2012, our high-speed Internet and TV subscriber base were reduced by 8,844 customers and 7,514 customers respectively, to adjust for customer deactivations.

BCE Supplementary Financial Information – First Quarter 2013 Page 7

Bell Wireless^{(1) (2)}

	Q1		Q1
($ millions of Canadian dollars, except where otherwise indicated) (unaudited)	2013		2012		% change
Bell Wireless
Revenue
Service	1,303		1,216		7.2	%
Product	93		94		(1.1	%)
Total external Bell Wireless revenues	1,396		1,310		6.6	%
Inter-segment	13		16		(18.8	%)
Total Bell Wireless operating revenues	1,409		1,326		6.3	%
Operating costs	(824	)	(802	)	(2.7	%)
EBITDA	585		524		11.6	%
EBITDA margin (Total revenues)	*41.5*	%	39.5	%	2.0	pts
EBITDA margin (Service revenues)	*44.9*	%	43.1	%	1.8	pts

Capital expenditures	122		136		10.3	%
Capital intensity	*8.7*	%	10.3	%	1.6	pts
Wireless gross activations	371,217		388,146		(4.4	%)
Postpaid	295,136		293,572		0.5	%
Wireless net activations	(8,957	)	(21,327	)	58.0	%
Postpaid	59,497		62,576		(4.9	%)
Wireless subscribers EOP	7,672,075		7,406,155		3.6	%
Postpaid	6,484,542		6,037,742		7.4	%
Average revenue per unit (ARPU)($/month) ⁽⁶⁾	55.92		53.84		3.9	%
Churn (%) (average per month) ⁽⁷⁾	1.7	%	1.8	%	0.1	pts
Prepaid	3.8	%	3.9	%	0.1	pts
Postpaid	1.3	%	1.4	%	0.1	pts
Usage per subscriber (min/month)	298		285		4.6	%
Cost of acquisition (COA) ⁽⁸⁾($/sub)	404		399		(1.3	%)

BCE Supplementary Financial Information – First Quarter 2013 Page 8

Bell Wireless - Historical Trend

			Total
($ millions of Canadian dollars, except where otherwise indicated) (unaudited)	Q1 13		2012		Q4 12		Q3 12		Q2 12		Q1 12
Bell Wireless
Revenue
Service	1,303		5,086		1,311		1,307		1,252		1,216
Product	93		438		132		113		99		94
Total external Bell Wireless revenues	1,396		5,524		1,443		1,420		1,351		1,310
Inter-segment	13		62		15		14		17		16
Total Bell Wireless operating revenues	1,409		5,586		1,458		1,434		1,368		1,326
Operating costs	(824	)	(3,471	)	(979	)	(881	)	(809	)	(802	)
EBITDA	585		2,115		479		553		559		524
EBITDA margin (Total revenues)	*41.5*	%	37.9	%	32.9	%	38.6	%	40.9	%	39.5	%
EBITDA margin (Service revenues)	*44.9*	%	41.6	%	36.5	%	42.3	%	44.6	%	43.1	%

Capital expenditures	122		637		177		152		172		136
Capital intensity	*8.7*	%	11.4	%	12.1	%	10.6	%	12.6	%	10.3	%
Wireless gross activations	371,217		1,802,837		495,730		490,696		428,265		388,146
Postpaid	295,136		1,388,187		394,706		372,574		327,335		293,572
Wireless net activations	(8,957	)	260,650		105,005		129,764		47,208		(21,327	)
Postpaid	59,497		456,979		143,834		148,502		102,067		62,576
Wireless subscribers EOP	7,672,075		7,681,032		7,681,032		7,576,027		7,453,363		7,406,155
Postpaid ^(A)	6,484,542		6,425,045		6,425,045		6,281,211		6,139,809		6,037,742
Average revenue per unit (ARPU)($/month)	55.92		55.82		56.72		57.30		55.37		53.84
Churn (%)(average per month)	1.7	%	1.7	%	1.7	%	1.6	%	1.7	%	1.8	%
Prepaid	3.8	%	3.6	%	3.5	%	3.3	%	3.7	%	3.9	%
Postpaid	1.3	%	1.3	%	1.3	%	1.2	%	1.3	%	1.4	%
Usage per subscriber (min/month)	298		302		311		307		303		285
Cost of acquisition (COA)($/sub)	404		416		480		397		381		399

(A)	At the beginning of Q3 2012, our wireless postpaid subscriber base was reduced by 7,100 customers to adjust for customer deactivations.

BCE Supplementary Financial Information – First Quarter 2013 Page 9

BCE⁽¹⁾
Net debt and other information⁽²⁾

BCE - Net debt and preferreds

At March 31, 2013			BCE
($ millions of Canadian dollars, except where otherwise indicated) (unaudited)
			Bell
	Bell		Aliant		BCE
Debt due within one year	2,479		652		3,131
Long-term debt	11,810		2,188		13,998
Preferred shares - BCE ^(A)	1,698		-		1,698
Cash and cash equivalents	(1,145	)	(10	)	(1,155	)
Net debt	14,842		2,830		17,672

Bell - Net debt and preferreds
($ millions of Canadian dollars, except where otherwise indicated) (unaudited)
	March 31		Dec. 31
	2013		2012
Debt due within one year	2,479		1,681
Long-term debt	11,810		11,304
Preferred shares - BCE ^(A)	1,698		1,698
Cash and cash equivalents	(1,145	)	(111	)
Net Debt	14,842		14,572
Net Debt / Adjusted EBITDA ^(B)	2.18		2.15
Adjusted EBITDA ^(B)/ Net interest, excluding interest on post-employment benefit obligations and including 50% of preferred dividends	8.71		8.82

Bell Media Inc. - Proportionate Information
($ millions of Canadian dollars, except where otherwise indicated) (unaudited)		Total
	Q1 2013	2012	Q4 2012	Q3 2012	Q2 2012	Q1 2012
Proportionate Net Debt	206	214	214	198	211	188
Proportionate EBITDA	78	462	146	124	128	64

Cash Flow Information
($ millions of Canadian dollars, except where otherwise indicated) (unaudited)	Q1		Q1
	2013		2012		$ change		% change
Free Cash Flow (FCF)
Cash from operating activities, excluding acquisition costs paid	826		1,009		(183	)	(18.1	%)
Capital expenditures	(594	)	(680	)	86		12.6	%
Dividends paid on preferred shares	(26	)	(33	)	7		21.2	%
Dividends/distributions paid by subsidiaries to non-controlling interest	(7	)	(13	)	6		46.2	%
Voluntary defined benefit pension plan contribution	-		-		-		0.0	%
Bell Aliant distributions to BCE	48		48		-		0.0	%
FCF	247		331		(84	)	(25.4	%)

Cash Flow Information - Historical Trend
($ millions of Canadian dollars, except where otherwise indicated) (unaudited)	Q1		Total		Q4		Q3		Q2		Q1
	2013		2012		2012		2012		2012		2012
Free Cash Flow (FCF)
Cash from operating activities, excluding acquisition costs paid	826		4,621		645		1,373		1,594		1,009
Capital expenditures	(594	)	(2,923	)	(779	)	(688	)	(776	)	(680	)
Dividends paid on preferred shares	(26	)	(133	)	(39	)	(27	)	(34	)	(33	)
Dividends/distributions paid by subsidiaries to non-controlling interest	(7	)	(78	)	(20	)	(20	)	(25	)	(13	)
Voluntary defined benefit pension plan contribution	-		750		750		-		-		-
Bell Aliant distributions to BCE	48		191		48		48		47		48
FCF	247		2,428		605		686		806		331

(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 trailing 12 months data.

BCE Supplementary Financial Information – First Quarter 2013 Page 10

BCE ⁽¹⁾
Consolidated Statements of Financial Position ⁽²⁾

	March 31		December 31
($ millions of Canadian dollars, except where otherwise indicated) (unaudited)	2013		2012
*ASSETS*
Current assets
Cash	116		119
Cash equivalents	1,039		10
Trade and other receivables	2,794		2,910
Current tax receivable	15		36
Inventory	390		392
Prepaid expenses	468		301
Other current assets	138		145
Total current assets	4,960		3,913
Non-current assets
Property, plant and equipment	19,951		20,007
Intangible assets	8,197		8,183
Deferred tax assets	285		244
Investments in associates and joint ventures	812		800
Other non-current assets	784		637
Goodwill	7,189		7,185
Total non-current assets	37,218		37,056
Total assets	42,178		40,969
*LIABILITIES*
Current liabilities
Trade payables and other liabilities	3,576		3,916
Interest payable	146		128
Dividends payable	472		453
Current tax liabilities	170		113
Debt due within one year	3,131		2,136
Total current liabilities	7,495		6,746
Non-current liabilities
Long-term debt	13,998		13,886
Deferred tax liabilities	793		761
Post-employment benefit obligation	3,356		3,422
Other non-current liabilities	1,380		1,429
Total non-current liabilities	19,527		19,498
Total liabilities	27,022		26,244

*EQUITY*
Equity attributable to BCE shareholders
Preferred shares	3,395		3,395
Common shares	13,629		13,611
Contributed surplus	2,581		2,557
Accumulated other comprehensive (loss) income	(4	)	(6	)
Deficit	(5,534	)	(5,682	)
Equity attributable to BCE shareholders	14,067		13,875
Non-controlling interest	1,089		850
Total equity	15,156		14,725
Total liabilities and equity	42,178		40,969
Number of common shares outstanding	775.9		775.4

BCE Supplementary Financial Information – First Quarter 2013 Page 11

BCE ⁽¹⁾
Consolidated Cash Flow Data ⁽²⁾

		Q1			Q1
($ millions of Canadian dollars, except where otherwise indicated) (unaudited)		2013			2012			$ change
Net earnings		672			631			41
Adjustments to reconcile net earnings to cash flows from operating activities
Severance, acquisition and other costs		33			19			14
Depreciation and amortization		838			827			11
Post-employment benefit plans cost		114			99			15
Net interest expense		220			207			13
Gains on investments		(2	)		(8	)		6
Income taxes		241			191			50
Contributions to post-employment benefit plans		(98	)		(86	)		(12	)
Payments under other post-employment benefit plans		(18	)		(18	)		-
Severance and other costs paid		(49	)		(98	)		49
Acquisition costs paid		(10	)		(25	)		15
Interest paid		(196	)		(180	)		(16	)
Income taxes paid (net of refunds)		(148	)		(104	)		(44	)
Operating assets and liabilities		(557	)		(253	)		(304	)
Cash flows from operating activities		1,040			1,202			(162	)
Bell Aliant dividends/distributions paid to BCE		48			48			-
Capital expenditures		(722	)		(817	)		95
Cash dividends paid on preferred shares		(26	)		(33	)		7
Cash dividends/distributions paid by subsidiaries to non-controlling interest		(73	)		(79	)		6
Acquisition costs paid		10			25			(15	)
Bell Aliant Free Cash Flow		(30	)		(15	)		(15	)
Free Cash Flow ⁽³⁾		247			331			(84	)
Bell Aliant free cash flow, excluding dividends/distributions paid		(18	)		(33	)		15
Business acquisitions		(5	)		(2	)		(3	)
Acquisition costs paid		(10	)		(25	)		15
Increase in investments		-			(1	)		1
Decrease in investments		2			8			(6	)
Other investing activities		-			1			(1	)
Increase in notes payable and bank advances		338			266			72
Reduction in securitized trade receivables		(14	)		(12	)		(2	)
Issue of long-term debt		1,007			11			996
Repayment of long-term debt		(289	)		(85	)		(204	)
Cash dividends paid on common shares		(440	)		(403	)		(37	)
Issue of common shares		13			18			(5	)
Repurchase of common shares		-			(107	)		107
Issue of preferred shares		-			280			(280	)
Issue of equity securities by subsidiaries to non-controlling interest		230			1			229
Other financing activities		(35	)		(24	)		(11	)
		779			(107	)		886
Net increase in cash and cash equivalents		1,026			224			802
Cash and cash equivalents at beginning of period		129			177			(48	)
Cash and cash equivalents at end of period		1,155			401			754

Other information
Cash flow per share ⁽⁹⁾	$	0.41		$	0.50		$	(0.09	)
Annualized cash flow yield ⁽¹⁰⁾		6.4	%		7.6	%		(1.2	) pts

BCE Supplementary Financial Information – First Quarter 2013 Page 12

BCE
Consolidated Cash Flow Data - Historical Trend

					Total
($ millions of Canadian dollars, except where otherwise indicated) (unaudited)		Q1 13			2012			Q4 12			Q3 12			Q2 12			Q1 12
Net earnings		672			2,876			765			644			836			631
Adjustments to reconcile net earnings to cash flows from operating activities
Severance, acquisition and other costs		33			133			69			25			20			19
Depreciation and amortization		838			3,392			868			853			844			827
Post-employment benefit plans cost		114			356			92			70			95			99
Net interest expense		220			858			222			223			206			207
Gains on investments		(2	)		(256	)		(249	)		1			-			(8	)
Income taxes		241			760			181			231			157			191
Contributions to post-employment benefit plans		(98	)		(1,192	)		(936	)		(81	)		(89	)		(86	)
Payments under other post-employment benefit plans		(18	)		(73	)		(19	)		(18	)		(18	)		(18	)
Severance and other costs paid		(49	)		(231	)		(41	)		(43	)		(49	)		(98	)
Acquisition costs paid		(10	)		(101	)		(5	)		(39	)		(32	)		(25	)
Interest paid		(196	)		(835	)		(236	)		(222	)		(197	)		(180	)
Income taxes paid (net of refunds)		(148	)		(280	)		(91	)		(38	)		(47	)		(104	)
Operating assets and liabilities		(557	)		153			243			(15	)		178			(253	)
Cash flows from operating activities		1,040			5,560			863			1,591			1,904			1,202
Bell Aliant dividends/distributions paid to BCE		48			191			48			48			47			48
Capital expenditures		(722	)		(3,515	)		(914	)		(832	)		(952	)		(817	)
Cash dividends paid on preferred shares		(26	)		(133	)		(39	)		(27	)		(34	)		(33	)
Cash dividends/distributions paid by subsidiaries to non-controlling interest		(73	)		(340	)		(85	)		(85	)		(91	)		(79	)
Acquisition costs paid		10			101			5			39			32			25
Voluntary defined benefit pension plan contribution		-			750			750			-			-			-
Bell Aliant Free Cash Flow		(30	)		(186	)		(23	)		(48	)		(100	)		(15	)
Free Cash Flow		247			2,428			605			686			806			331
Bell Aliant free cash flow, excluding dividends/distributions paid		(18	)		(5	)		(25	)		-			53			(33	)
Business acquisitions		(5	)		(13	)		(8	)		(3	)		-			(2	)
Acquisition costs paid		(10	)		(101	)		(5	)		(39	)		(32	)		(25	)
Voluntary defined benefit pension plan contribution		-			(750	)		(750	)		-			-			-
Increase in investments		-			(593	)		(192	)		(399	)		(1	)		(1	)
Decrease in investments		2			10			1			-			1			8
Other investing activities		-			10			4			1			4			1
Increase (decrease) in notes payable and bank advances		338			377			483			15			(387	)		266
(Reduction) increase in securitized trade receivables		(14	)		(15	)		-			10			(13	)		(12	)
Issue of long-term debt		1,007			1,055			22			11			1,011			11
Repayment of long-term debt		(289	)		(946	)		(112	)		(116	)		(633	)		(85	)
Cash dividends paid on common shares		(440	)		(1,683	)		(440	)		(420	)		(420	)		(403	)
Issue of common shares		13			39			9			4			8			18
Repurchase of common shares		-			(107	)		-			-			-			(107	)
Issue of preferred shares		-			280			-			-			-			280
Issue of equity securities by subsidiaries to non-controlling interest		230			11			-			9			1			1
Other financing activities		(35	)		(45	)		(14	)		(1	)		(6	)		(24	)
		779			(2,476	)		(1,027	)		(928	)		(414	)		(107	)
Net increase (decrease) in cash and cash equivalents		1,026			(48	)		(422	)		(242	)		392			224
Cash and cash equivalents at beginning of period		129			177			551			793			401			177
Cash and cash equivalents at end of period		1,155			129			129			551			793			401

Other information
Cash flow per share	$	0.41		$	2.64		$	(0.07	)	$	0.98		$	1.23		$	0.50
Annualized cash flow yield		6.4	%		7.3	%		7.3	%		7.1	%		8.3	%		7.6	%

BCE Supplementary Financial Information – First Quarter 2013 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, joint ventures and associates.
(2)	On January 1, 2013, we adopted the required amendments for IAS 19 – Employee Benefits and IFRS 11 – Joint Arrangements. As a result, we have reclassified some of the figures for the comparative period to make them consistent with the current period’s presentation. For further details see note 2 of the Q1 2013 financial statements.
(3)	Non-GAAP Financial Measures EBITDA The term EBITDA does not have any standardized meaning under IFRS. Therefore, it is unlikely to be comparable to similar measures presented by other companies. We define EBITDA as operating revenues less operating costs (including post-employment benefit plans service cost). We use EBITDA to evaluate the performance of our businesses as it reflects their ongoing profitability. 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 measurement to value companies in the telecommunications industry. EBITDA also is one component in the determination of short-term incentive compensation for all management employees. EBITDA has no directly comparable IFRS financial measure. Alternatively, it may be reconciled to net earnings as shown in this document. 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. Starting in 2013, our definition of Adjusted net earnings has been modified to exclude premiums on early redemption of debt to align with the reporting practices of our peers. We define Adjusted net earnings as net earnings attributable to common shareholders before severance, acquisition and other costs, net (gains) losses on investments, and premiums on early redemption of debt. We define Adjusted EPS as Adjusted net earnings per BCE common share. We use Adjusted net earnings and Adjusted EPS, among other measures, to assess the performance of our businesses without the effects of severance, acquisition and other costs, net (gains) losses on investments, and premiums on early redemption of debt, 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 EPS.

BCE Supplementary Financial Information – First Quarter 2013 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. Starting in 2013, our definition of free cash flow has been modified to exclude voluntary pension funding because it is a discretionary use of excess cash. We define free cash flow as cash flows from operating activities, excluding acquisition costs paid and voluntary pension funding, plus 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 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 flows from operating activities.
(4)	EBITDA margin is calculated as follows: EBITDA Operating revenues
(5)	Capital Intensity is calculated as follows: Capital expenditures Operating revenues
(6)	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.
(7)	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.
(8)	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 discounts, marketing and distribution costs.
(9)	Cash flow per share is calculated as follows: Cash flow from operating activities less capital expenditures Average number of common shares outstanding
(10)	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 Supplementary Financial Information – First Quarter 2013 Page 15