Supplementary Financial Information

EX-99.2 3 supp_q213.htm SUPPLEMENTARY FINANCIAL INFORMATION - SECOND QUARTER 2013 Supplementary Financial Information

EXHIBIT 99.2

BCE ⁽¹⁾
Consolidated Operational Data ⁽²⁾

		Q2			Q2								YTD			YTD
($ millions of Canadian dollars, except per share amounts) (unaudited)		2013			2012			$ change		% change			2013			2012			$ change		% change
Operating revenues		5,000			4,925			75		1.5	%		9,919			9,835			84		0.9	%
Operating costs ^(A)		(2,865	)		(2,819	)		(46	)	(1.6	%)		(5,745	)		(5,734	)		(11	)	(0.2	%)
Post-employment benefit plans service cost		(69	)		(62	)		(7	)	(11.3	%)		(146	)		(128	)		(18	)	(14.1	%)
EBITDA ⁽³⁾		2,066			2,044			22		1.1	%		4,028			3,973			55		1.4	%
EBITDA margin ⁽⁴⁾		*41.3*	%		41.5	%				(0.2	) pts		*40.6*	%		40.4	%				0.2	pts
Severance, acquisition and other costs		(28	)		(20	)		(8	)	(40.0	%)		(61	)		(39	)		(22	)	(56.4	%)
Depreciation		(681	)		(666	)		(15	)	(2.3	%)		(1,356	)		(1,312	)		(44	)	(3.4	%)
Amortization		(161	)		(178	)		17		9.6	%		(324	)		(359	)		35		9.7	%
Finance costs
Interest expense		(228	)		(209	)		(19	)	(9.1	%)		(449	)		(416	)		(33	)	(7.9	%)
Interest on post-employment benefit obligations		(38	)		(33	)		(5	)	(15.2	%)		(75	)		(66	)		(9	)	(13.6	%)
Other (expense) income		(63	)		55			(118	)	n.m.			17			34			(17	)	(50.0	%)
Earnings before income taxes		867			993			(126	)	(12.7	%)		1,780			1,815			(35	)	(1.9	%)
Income taxes		(196	)		(157	)		(39	)	(24.8	%)		(437	)		(348	)		(89	)	(25.6	%)
Net earnings		671			836			(165	)	(19.7	%)		1,343			1,467			(124	)	(8.5	%)
Net earnings attributable to:
Common shareholders		571			732			(161	)	(22.0	%)		1,137			1,263			(126	)	(10.0	%)
Preferred shareholders		33			34			(1	)	(2.9	%)		66			69			(3	)	(4.3	%)
Non-controlling interest		67			70			(3	)	(4.3	%)		140			135			5		3.7	%
Net earnings		671			836			(165	)	(19.7	%)		1,343			1,467			(124	)	(8.5	%)
Net earnings per common share - basic	$	0.74		$	0.94		$	(0.20	)	(21.3	%)	$	1.47		$	1.63		$	(0.16	)	(9.8	%)
Net earnings per common share - diluted	$	0.74		$	0.94		$	(0.20	)	(21.3	%)	$	1.47		$	1.63		$	(0.16	)	(9.8	%)

Dividends per common share	$	0.5825		$	0.5425		$	0.040		7.4	%	$	1.1650		$	1.0850		$	0.080		7.4	%
Average number of common shares outstanding - basic (millions)		775.9			773.7								775.8			774.0
Average number of common shares outstanding - diluted (millions)		776.6			774.0								776.5			774.4
Number of common shares outstanding (millions)		775.9			773.9								775.9			773.9

Adjusted Net Earnings and EPS
Net earnings attributable to common shareholders		571			732			(161	)	(22.0	%)		1,137			1,263			(126	)	(10.0	%)
Severance, acquisition and other costs		21			15			6		40.0	%		44			29			15		51.7	%
Net gains on investments		(1	)		-			(1	)	n.m.			(3	)		(8	)		5		62.5	%
Premiums on early redemption of debt		3			-			3		n.m.			15			-			15		n.m.
Adjusted net earnings attributable to common shareholders ⁽³⁾		594			747			(153	)	(20.5	%)		1,193			1,284			(91	)	(7.1	%)
Impact on net earnings per share	$	0.03		$	0.03		$	-		0.0	%	$	0.07		$	0.03		$	0.04		n.m.
Adjusted EPS ⁽³⁾	$	0.77		$	0.97		$	(0.20	)	(20.6	%)	$	1.54		$	1.66		$	(0.12	)	(7.2	%)

(A)	Excludes post-employment benefit plans service cost
n.m. : not meaningful

BCE Supplementary Financial Information – Second Quarter 2013 Page 2

BCE
Consolidated Operational Data – Historical Trend

($ millions of Canadian dollars, except per share amounts) (unaudited)		YTD 2013			Q2 13			Q1 13			Total 2012			Q4 12			Q3 12			Q2 12			Q1 12
Operating revenues		9,919			5,000			4,919			19,978			5,161			4,982			4,925			4,910
Operating costs ^(A)		(5,745	)		(2,865	)		(2,880	)		(11,865	)		(3,205	)		(2,926	)		(2,819	)		(2,915	)
Post-employment benefit plans service cost		(146	)		(69	)		(77	)		(225	)		(60	)		(37	)		(62	)		(66	)
EBITDA		4,028			2,066			1,962			7,888			1,896			2,019			2,044			1,929
*EBITDA margin*		*40.6*	%		*41.3*	%		39.9	%		39.5	%		36.7	%		40.5	%		41.5	%		39.3	%
Severance, acquisition and other costs		(61	)		(28	)		(33	)		(133	)		(69	)		(25	)		(20	)		(19	)
Depreciation		(1,356	)		(681	)		(675	)		(2,678	)		(693	)		(673	)		(666	)		(646	)
Amortization		(324	)		(161	)		(163	)		(714	)		(175	)		(180	)		(178	)		(181	)
Finance costs
Interest expense		(449	)		(228	)		(221	)		(865	)		(224	)		(225	)		(209	)		(207	)
Interest on post-employment benefit obligations		(75	)		(38	)		(37	)		(131	)		(32	)		(33	)		(33	)		(33	)
Other income (expense)		17			(63	)		80			269			243			(8	)		55			(21	)
Earnings before income taxes		1,780			867			913			3,636			946			875			993			822
Income taxes		(437	)		(196	)		(241	)		(760	)		(181	)		(231	)		(157	)		(191	)
Net earnings		1,343			671			672			2,876			765			644			836			631
Net earnings attributable to:
Common shareholders		1,137			571			566			2,456			666			527			732			531
Preferred shareholders		66			33			33			139			34			36			34			35
Non-controlling interest		140			67			73			281			65			81			70			65
Net earnings		1,343			671			672			2,876			765			644			836			631

Net earnings per common share - basic	$	1.47		$	0.74		$	0.73		$	3.17		$	0.86		$	0.68		$	0.94		$	0.69
Net earnings per common share - diluted	$	1.47		$	0.74		$	0.73		$	3.17		$	0.86		$	0.68		$	0.94		$	0.69

Dividends per common share	$	1.1650		$	0.5825		$	0.5825		$	2.2200		$	0.5675		$	0.5675		$	0.5425		$	0.5425
Average number of common shares outstanding - basic (millions)		775.8			775.9			775.7			774.3			775.0			774.2			773.7			774.3
Average number of common shares outstanding - diluted (millions)		776.5			776.6			776.3			774.6			775.4			774.8			774.0			774.7
Number of common shares outstanding (millions)		775.9			775.9			775.9			775.4			775.4			774.6			773.9			773.6

Adjusted Net Earnings and EPS
Net earnings attributable to common shareholders		1,137			571			566			2,456			666			527			732			531
Severance, acquisition and other costs		44			21			23			94			46			19			15			14
Net gains on investments		(3	)		(1	)		(2	)		(256	)		(248	)		-			-			(8	)
Premiums on early redemption of debt		15			3			12			-			-			-			-			-
Adjusted net earnings attributable to common shareholders		1,193			594			599			2,294			464			546			747			537
Impact on net earnings per share	$	0.07		$	0.03		$	0.04		$	(0.21	)	$	(0.26	)	$	0.02		$	0.03		$	-

Adjusted EPS	$	1.54		$	0.77		$	0.77		$	2.96		$	0.60		$	0.70		$	0.97		$	0.69

(A)	Excludes post-employment benefit plans service cost

BCE Supplementary Financial Information – Second Quarter 2013 Page 3

BCE ⁽¹⁾
Segmented Data ⁽²⁾

($ millions of Canadian dollars, except where otherwise indicated) (unaudited)	Q2 2013		Q2 2012		$ change		% change		YTD 2013		YTD 2012		$ change		% change
Revenues
Bell Wireline	2,506		2,528		(22	)	(0.9	%)	5,014		5,107		(93	)	(1.8	%)
Bell Wireless	1,442		1,368		74		5.4	%	2,851		2,694		157		5.8	%
Bell Media	559		534		25		4.7	%	1,072		1,046		26		2.5	%
Inter-segment eliminations	(83	)	(89	)	6		6.7	%	(165	)	(172	)	7		4.1	%
Total Bell	4,424		4,341		83		1.9	%	8,772		8,675		97		1.1	%
Bell Aliant	691		687		4		0.6	%	1,375		1,369		6		0.4	%
Inter-segment eliminations	(115	)	(103	)	(12	)	(11.7	%)	(228	)	(209	)	(19	)	(9.1	%)
Total BCE	5,000		4,925		75		1.5	%	9,919		9,835		84		0.9	%
Operating costs
Bell Wireline	(1,527	)	(1,520	)	(7	)	(0.5	%)	(3,077	)	(3,096	)	19		0.6	%
Bell Wireless	(833	)	(809	)	(24	)	(3.0	%)	(1,657	)	(1,611	)	(46	)	(2.9	%)
Bell Media	(403	)	(383	)	(20	)	(5.2	%)	(818	)	(814	)	(4	)	(0.5	%)
Inter-segment eliminations	83		89		(6	)	(6.7	%)	165		172		(7	)	(4.1	%)
Total Bell	(2,680	)	(2,623	)	(57	)	(2.2	%)	(5,387	)	(5,349	)	(38	)	(0.7	%)
Bell Aliant	(369	)	(361	)	(8	)	(2.2	%)	(732	)	(722	)	(10	)	(1.4	%)
Inter-segment eliminations	115		103		12		11.7	%	228		209		19		9.1	%
Total BCE	(2,934	)	(2,881	)	(53	)	(1.8	%)	(5,891	)	(5,862	)	(29	)	(0.5	%)
EBITDA
Bell Wireline	979		1,008		(29	)	(2.9	%)	1,937		2,011		(74	)	(3.7	%)
Margin	*39.1*	%	39.9	%			(0.8	) pts	*38.6*	%	39.4	%			(0.8	) pts
Bell Wireless	609		559		50		8.9	%	1,194		1,083		111		10.2	%
Margin	*42.2*	%	40.9	%			1.3	pts	*41.9*	%	40.2	%			1.7	pts
Bell Media	156		151		5		3.3	%	254		232		22		9.5	%
Margin	*27.9*	%	28.3	%			(0.4	) pts	*23.7*	%	22.2	%			1.5	pts
Total Bell	1,744		1,718		26		1.5	%	3,385		3,326		59		1.8	%
Margin	*39.4*	%	39.6	%			(0.2	) pts	*38.6*	%	38.3	%			0.3	pts
Bell Aliant	322		326		(4	)	(1.2	%)	643		647		(4	)	(0.6	%)
Margin	*46.6*	%	47.5	%			(0.9	) pts	*46.8*	%	47.3	%			(0.5	) pts
Total BCE	2,066		2,044		22		1.1	%	4,028		3,973		55		1.4	%
Margin	*41.3*	%	41.5	%			(0.2	) pts	*40.6*	%	40.4	%			0.2	pts
Capital expenditures
Bell Wireline	523		586		63		10.8	%	983		1,118		135		12.1	%
Capital Intensity ⁽⁵⁾	*20.9*	%	23.2	%			2.3	pts	*19.6*	%	21.9	%			2.3	pts
Bell Wireless	134		172		38		22.1	%	256		308		52		16.9	%
Capital Intensity	*9.3*	%	12.6	%			3.3	pts	*9.0*	%	11.4	%			2.4	pts
Bell Media	16		18		2		11.1	%	28		30		2		6.7	%
Capital Intensity	*2.9*	%	3.4	%			0.5	pts	*2.6*	%	2.9	%			0.3	pts
Total Bell	673		776		103		13.3	%	1,267		1,456		189		13.0	%
Capital Intensity	*15.2*	%	17.9	%			2.7	pts	*14.4*	%	16.8	%			2.4	pts
Bell Aliant	157		176		19		10.8	%	285		313		28		8.9	%
Capital Intensity	*22.7*	%	25.6	%			2.9	pts	*20.7*	%	22.9	%			2.2	pts
Total BCE	830		952		122		12.8	%	1,552		1,769		217		12.3	%
Capital Intensity	*16.6*	%	19.3	%			2.7	pts	*15.6*	%	18.0	%			2.4	pts

BCE Supplementary Financial Information – Second Quarter 2013 Page 4

BCE
Segmented Data – Historical Trend

($ millions of Canadian dollars, except where otherwise indicated) (unaudited)	YTD 2013		Q2 13		Q1 13		Total 2012		Q4 12		Q3 12		Q2 12		Q1 12
Revenues
Bell Wireline	5,014		2,506		2,508		10,220		2,608		2,505		2,528		2,579
Bell Wireless	2,851		1,442		1,409		5,586		1,458		1,434		1,368		1,326
Bell Media	1,072		559		513		2,183		591		546		534		512
Inter-segment eliminations	(165	)	(83	)	(82	)	(344	)	(80	)	(92	)	(89	)	(83	)
Total Bell	8,772		4,424		4,348		17,645		4,577		4,393		4,341		4,334
Bell Aliant	1,375		691		684		2,761		694		698		687		682
Inter-segment eliminations	(228	)	(115	)	(113	)	(428	)	(110	)	(109	)	(103	)	(106	)
Total BCE	9,919		5,000		4,919		19,978		5,161		4,982		4,925		4,910

Operating costs
Bell Wireline	(3,077	)	(1,527	)	(1,550	)	(6,300	)	(1,677	)	(1,527	)	(1,520	)	(1,576	)
Bell Wireless	(1,657	)	(833	)	(824	)	(3,471	)	(979	)	(881	)	(809	)	(802	)
Bell Media	(818	)	(403	)	(415	)	(1,622	)	(419	)	(389	)	(383	)	(431	)
Inter-segment eliminations	165		83		82		344		80		92		89		83
Total Bell	(5,387	)	(2,680	)	(2,707	)	(11,049	)	(2,995	)	(2,705	)	(2,623	)	(2,726	)
Bell Aliant	(732	)	(369	)	(363	)	(1,469	)	(380	)	(367	)	(361	)	(361	)
Inter-segment eliminations	228		115		113		428		110		109		103		106
Total BCE	(5,891	)	(2,934	)	(2,957	)	(12,090	)	(3,265	)	(2,963	)	(2,881	)	(2,981	)
EBITDA
Bell Wireline	1,937		979		958		3,920		931		978		1,008		1,003
Margin	*38.6*	%	*39.1*	%	38.2	%	38.4	%	35.7	%	39.0	%	39.9	%	38.9	%
Bell Wireless	1,194		609		585		2,115		479		553		559		524
Margin	*41.9*	%	*42.2*	%	41.5	%	37.9	%	32.9	%	38.6	%	40.9	%	39.5	%
Bell Media	254		156		98		561		172		157		151		81
Margin	*23.7*	%	*27.9*	%	19.1	%	25.7	%	29.1	%	28.8	%	28.3	%	15.8	%
Total Bell	3,385		1,744		1,641		6,596		1,582		1,688		1,718		1,608
Margin	*38.6*	%	*39.4*	%	37.7	%	37.4	%	34.6	%	38.4	%	39.6	%	37.1	%
Bell Aliant	643		322		321		1,292		314		331		326		321
Margin	*46.8*	%	*46.6*	%	46.9	%	46.8	%	45.2	%	47.4	%	47.5	%	47.1	%
Total BCE	4,028		2,066		1,962		7,888		1,896		2,019		2,044		1,929
Margin	*40.6*	%	*41.3*	%	39.9	%	39.5	%	36.7	%	40.5	%	41.5	%	39.3	%
Capital expenditures
Bell Wireline	983		523		460		2,193		561		514		586		532
Capital Intensity	*19.6*	%	*20.9*	%	18.3	%	21.5	%	21.5	%	20.5	%	23.2	%	20.6	%
Bell Wireless	256		134		122		637		177		152		172		136
Capital Intensity	*9.0*	%	*9.3*	%	8.7	%	11.4	%	12.1	%	10.6	%	12.6	%	10.3	%
Bell Media	28		16		12		93		41		22		18		12
Capital Intensity	*2.6*	%	*2.9*	%	2.3	%	4.3	%	6.9	%	4.0	%	3.4	%	2.3	%
Total Bell	1,267		673		594		2,923		779		688		776		680
Capital Intensity	*14.4*	%	*15.2*	%	13.7	%	16.6	%	17.0	%	15.7	%	17.9	%	15.7	%
Bell Aliant	285		157		128		592		135		144		176		137
Capital Intensity	*20.7*	%	*22.7*	%	18.7	%	21.4	%	19.5	%	20.6	%	25.6	%	20.1	%
Total BCE	1,552		830		722		3,515		914		832		952		817
Capital Intensity	*15.6*	%	*16.6*	%	14.7	%	17.6	%	17.7	%	16.7	%	19.3	%	16.6	%

BCE Supplementary Financial Information – Second Quarter 2013 Page 5

Bell Wireline^{(1) (2)}

	Q2		Q2				YTD		YTD
($ millions of Canadian dollars, except where otherwise indicated) (unaudited)	2013		2012		% change		2013		2012		% change
Bell Wireline
Local & access ^(A)	632		680		(7.1	%)	1,278		1,373		(6.9	%)
Long distance	183		206		(11.2	%)	367		418		(12.2	%)
Data ^(A)	1,456		1,400		4.0	%	2,889		2,822		2.4	%
Equipment & other ^(A)	153		163		(6.1	%)	317		335		(5.4	%)
Total external revenues	2,424		2,449		(1.0	%)	4,851		4,948		(2.0	%)
Inter-segment revenues	82		79		3.8	%	163		159		2.5	%
Total Bell Wireline operating revenues	2,506		2,528		(0.9	%)	5,014		5,107		(1.8	%)
Operating costs	(1,527	)	(1,520	)	(0.5	%)	(3,077	)	(3,096	)	0.6	%
EBITDA	979		1,008		(2.9	%)	1,937		2,011		(3.7	%)
EBITDA Margin	*39.1*	%	39.9	%	(0.8	) pts	*38.6*	%	39.4	%	(0.8	) pts

Capital expenditures	523		586		10.8	%	983		1,118		12.1	%
Capital Intensity	*20.9*	%	23.2	%	2.3	pts	*19.6*	%	21.9	%	2.3	pts
Local
Network access services (NAS)
Residential	2,774,667		3,111,883		(10.8	%)	2,774,667		3,111,883		(10.8	%)
Business	2,650,824		2,766,006		(4.2	%)	2,650,824		2,766,006		(4.2	%)
Total	5,425,491		5,877,889		(7.7	%)	5,425,491		5,877,889		(7.7	%)
Network access service net (losses)/activations
Residential	(82,090	)	(93,119	)	11.8	%	(165,647	)	(164,238	)	(0.9	%)
Business	(28,912	)	(34,118	)	15.3	%	(53,801	)	(59,529	)	9.6	%
Total	(111,002	)	(127,237	)	12.8	%	(219,448	)	(223,767	)	1.9	%
Internet
High Speed Internet net activations (losses)	3,901		(664	)	n.m.		5,832		11,729		(50.3	%)
High Speed Internet subscribers EOP	2,121,075		2,103,528		0.8	%	2,121,075		2,103,528		0.8	%
TV
Net subscriber activations	25,605		16,758		52.8	%	39,576		34,381		15.1	%
Fibe TV	50,555		38,477		31.4	%	98,018		71,920		36.3	%
Total subscribers EOP	2,195,559		2,128,433		3.2	%	2,195,559		2,128,433		3.2	%
Fibe TV	346,316		158,324		n.m.		346,316		158,324		n.m.

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

n.m. : not meaningful

BCE Supplementary Financial Information – Second Quarter 2013 Page 6

Bell Wireline – Historical Trend

($ millions of Canadian dollars, except where otherwise indicated) (unaudited)	YTD 2013		Q2 13		Q1 13		Total 2012		Q4 12		Q3 12		Q2 12		Q1 12
Bell Wireline
Local & access	1,278		632		646		2,688		649		666		680		693
Long distance	367		183		184		801		191		192		206		212
Data	2,889		1,456		1,433		5,666		1,453		1,391		1,400		1,422
Equipment & other	317		153		164		750		237		178		163		172
Total external revenues	4,851		2,424		2,427		9,905		2,530		2,427		2,449		2,499
Inter-segment revenues	163		82		81		315		78		78		79		80
Total Bell Wireline operating revenues	5,014		2,506		2,508		10,220		2,608		2,505		2,528		2,579
Operating costs	(3,077	)	(1,527	)	(1,550	)	(6,300	)	(1,677	)	(1,527	)	(1,520	)	(1,576	)
EBITDA	1,937		979		958		3,920		931		978		1,008		1,003
EBITDA Margin	*38.6*	%	*39.1*	%	38.2	%	38.4	%	35.7	%	39.0	%	39.9	%	38.9	%

Capital expenditures	983		523		460		2,193		561		514		586		532
Capital Intensity	*19.6*	%	*20.9*	%	18.3	%	21.5	%	21.5	%	20.5	%	23.2	%	20.6	%
Local
Network access services (NAS)
Residential ^(A)	2,774,667		2,774,667		2,856,757		2,940,314		2,940,314		3,027,343		3,111,883		3,205,002
Business	2,650,824		2,650,824		2,679,736		2,704,625		2,704,625		2,741,266		2,766,006		2,800,124
Total	5,425,491		5,425,491		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)	(165,647	)	(82,090	)	(83,557	)	(335,807	)	(87,029	)	(84,540	)	(93,119	)	(71,119	)
Business	(53,801	)	(28,912	)	(24,889	)	(120,910	)	(36,641	)	(24,740	)	(34,118	)	(25,411	)
Total	(219,448	)	(111,002	)	(108,446	)	(456,717	)	(123,670	)	(109,280	)	(127,237	)	(96,530	)
Internet
High Speed Internet net activations (losses)	5,832		3,901		1,931		32,288		7,143		13,416		(664	)	12,393
High Speed Internet subscribers EOP ^(B)	2,121,075		2,121,075		2,117,174		2,115,243		2,115,243		2,108,100		2,103,528		2,104,192
TV
Net subscriber activations	39,576		25,605		13,971		69,445		19,218		15,846		16,758		17,623
Fibe TV	98,018		50,555		47,463		163,127		48,234		42,973		38,477		33,443
Total subscribers EOP ^(B)	2,195,559		2,195,559		2,169,954		2,155,983		2,155,983		2,136,765		2,128,433		2,111,675
Fibe TV	346,316		346,316		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 – Second Quarter 2013 Page 7

Bell Wireless ^{(1) (2)}

	Q2		Q2				YTD		YTD
($ millions of Canadian dollars, except where otherwise indicated) (unaudited)	2013		2012		% change		2013		2012		% change
Bell Wireless
Revenue
Service	1,328		1,252		6.1	%	2,631		2,468		6.6	%
Product	99		99		0.0	%	192		193		(0.5	%)
Total external Bell Wireless revenues	1,427		1,351		5.6	%	2,823		2,661		6.1	%
Inter-segment	15		17		(11.8	%)	28		33		(15.2	%)
Total Bell Wireless operating revenues	1,442		1,368		5.4	%	2,851		2,694		5.8	%
Operating costs	(833	)	(809	)	(3.0	%)	(1,657	)	(1,611	)	(2.9	%)
EBITDA	609		559		8.9	%	1,194		1,083		10.2	%
EBITDA margin (Total revenues)	*42.2*	%	40.9	%	1.3	pts	*41.9*	%	40.2	%	1.7	pts
EBITDA margin (Service revenues)	*45.9*	%	44.6	%	1.3	pts	*45.4*	%	43.9	%	1.5	pts

Capital expenditures	134		172		22.1	%	256		308		16.9	%
Capital intensity	*9.3*	%	12.6	%	3.3	pts	*9.0*	%	11.4	%	2.4	pts
Wireless gross activations	421,647		428,265		(1.5	%)	792,864		816,411		(2.9	%)
Postpaid	336,052		327,335		2.7	%	631,188		620,907		1.7	%
Wireless net activations	43,566		47,208		(7.7	%)	34,609		25,881		33.7	%
Postpaid	96,390		102,067		(5.6	%)	155,887		164,643		(5.3	%)
Wireless subscribers EOP	7,715,641		7,453,363		3.5	%	7,715,641		7,453,363		3.5	%
Postpaid	6,580,932		6,139,809		7.2	%	6,580,932		6,139,809		7.2	%
Average revenue per unit (ARPU)($/month) ⁽⁶⁾	56.85		55.37		2.7	%	56.39		54.60		3.3	%
Churn (%) (average per month) ⁽⁷⁾	1.6	%	1.7	%	0.1	pts	1.7	%	1.8	%	0.1	pts
Prepaid	3.7	%	3.7	%	0.0	pts	3.8	%	3.8	%	0.0	pts
Postpaid	1.3	%	1.3	%	0.0	pts	1.3	%	1.3	%	0.0	pts
Usage per subscriber (min/month)	323		303		6.6	%	311		294		5.8	%
Cost of acquisition (COA) ⁽⁸⁾ ($/sub)	402		381		(5.5	%)	403		389		(3.6	%)

BCE Supplementary Financial Information – Second Quarter 2013 Page 8

Bell Wireless – Historical Trend

($ millions of Canadian dollars, except where otherwise indicated) (unaudited)	YTD 2013		Q2 13		Q1 13		Total 2012		Q4 12		Q3 12		Q2 12		Q1 12
Bell Wireless
Revenue
Service	2,631		1,328		1,303		5,086		1,311		1,307		1,252		1,216
Product	192		99		93		438		132		113		99		94
Total external Bell Wireless revenues	2,823		1,427		1,396		5,524		1,443		1,420		1,351		1,310
Inter-segment	28		15		13		62		15		14		17		16
Total Bell Wireless operating revenues	2,851		1,442		1,409		5,586		1,458		1,434		1,368		1,326
Operating costs	(1,657	)	(833	)	(824	)	(3,471	)	(979	)	(881	)	(809	)	(802	)
EBITDA	1,194		609		585		2,115		479		553		559		524
EBITDA margin (Total revenues)	*41.9*	%	*42.2*	%	41.5	%	37.9	%	32.9	%	38.6	%	40.9	%	39.5	%
EBITDA margin (Service revenues)	*45.4*	%	*45.9*	%	44.9	%	41.6	%	36.5	%	42.3	%	44.6	%	43.1	%

Capital expenditures	256		134		122		637		177		152		172		136
Capital intensity	*9.0*	%	*9.3*	%	8.7	%	11.4	%	12.1	%	10.6	%	12.6	%	10.3	%
Wireless gross activations	792,864		421,647		371,217		1,802,837		495,730		490,696		428,265		388,146
Postpaid	631,188		336,052		295,136		1,388,187		394,706		372,574		327,335		293,572
Wireless net activations	34,609		43,566		(8,957	)	260,650		105,005		129,764		47,208		(21,327	)
Postpaid	155,887		96,390		59,497		456,979		143,834		148,502		102,067		62,576
Wireless subscribers EOP	7,715,641		7,715,641		7,672,075		7,681,032		7,681,032		7,576,027		7,453,363		7,406,155
Postpaid ^(A)	6,580,932		6,580,932		6,484,542		6,425,045		6,425,045		6,281,211		6,139,809		6,037,742
Average revenue per unit (ARPU)($/month)	56.39		56.85		55.92		55.82		56.72		57.30		55.37		53.84
Churn (%)(average per month)	1.7	%	1.6	%	1.7	%	1.7	%	1.7	%	1.6	%	1.7	%	1.8	%
Prepaid	3.8	%	3.7	%	3.8	%	3.6	%	3.5	%	3.3	%	3.7	%	3.9	%
Postpaid	1.3	%	1.3	%	1.3	%	1.3	%	1.3	%	1.2	%	1.3	%	1.4	%
Usage per subscriber (min/month)	311		323		298		302		311		307		303		285
Cost of acquisition (COA)($/sub)	403		402		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 – Second Quarter 2013 Page 9

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

BCE - Net debt and preferreds

At June 30, 2013	BCE
($ millions of Canadian dollars, except where otherwise indicated) (unaudited)
			Bell
	Bell		Aliant	BCE
Debt due within one year	3,180		236	3,416
Long-term debt	11,793		2,581	14,374
Preferred shares - BCE (A)	1,698		-	1,698
Cash and cash equivalents	(2,208	)	-	(2,208	)
Net debt	14,463		2,817	17,280

Bell - Net debt and preferreds
($ millions of Canadian dollars, except where otherwise indicated) (unaudited)
	June 30		March 31		Dec. 31
	2013		2013		2012

Debt due within one year	3,180		2,479		1,681
Long-term debt	11,793		11,810		11,304
Preferred shares - BCE ^(A)	1,698		1,698		1,698
Cash and cash equivalents	(2,208	)	(1,145	)	(111	)
Net Debt	14,463		14,842		14,572

Net Debt / Adjusted EBITDA ^(B)	2.11		2.18		2.15
Adjusted EBITDA ^(B) / Net interest, excluding interest on post-employment benefit obligations and including 50% of preferred dividends	8.57		8.71		8.82

Bell Media Inc. - Proportionate Information
($ millions of Canadian dollars, except where otherwise indicated) (unaudited)	YTD			Total
	2013	Q2 2013	Q1 2013	2012	Q4 2012	Q3 2012	Q2 2012	Q1 2012

Proportionate Net Debt	202	202	206	214	214	198	211	188
Proportionate EBITDA	212	134	78	462	146	124	128	64

Cash Flow Information
($ millions of Canadian dollars, except where otherwise indicated) (unaudited)	Q2		Q2						YTD		YTD
	2013		2012		$ change		% change		2013		2012		$ change		% change
Free Cash Flow (FCF)
Cash from operating activities, excluding acquisition costs paid	1,567		1,594		(27	)	(1.7	%)	2,393		2,603		(210	)	(8.1	%)
Capital expenditures	(673	)	(776	)	103		13.3	%	(1,267	)	(1,456	)	189		13.0	%
Dividends paid on preferred shares	(32	)	(34	)	2		5.9	%	(58	)	(67	)	9		13.4	%
Dividends/distributions paid by subsidiaries to non-controlling interest	(6	)	(25	)	19		76.0	%	(13	)	(38	)	25		65.8	%
Voluntary defined benefit pension plan contribution	-		-		-		0.0	%	-		-		-		0.0	%
Bell Aliant distributions to BCE	47		47		-		0.0	%	95		95		-		0.0	%
FCF	903		806		97		12.0	%	1,150		1,137		13		1.1	%

Cash Flow Information - Historical Trend
($ millions of Canadian dollars, except where otherwise indicated) (unaudited)	YTD		Q2		Q1		Total		Q4		Q3		Q2		Q1
	2013		2013		2013		2012		2012		2012		2012		2012
Free Cash Flow (FCF)
Cash from operating activities, excluding acquisition costs paid	2,393		1,567		826		4,621		645		1,373		1,594		1,009
Capital expenditures	(1,267	)	(673	)	(594	)	(2,923	)	(779	)	(688	)	(776	)	(680	)
Dividends paid on preferred shares	(58	)	(32	)	(26	)	(133	)	(39	)	(27	)	(34	)	(33	)
Dividends/distributions paid by subsidiaries to non-controlling interest	(13	)	(6	)	(7	)	(78	)	(20	)	(20	)	(25	)	(13	)
Voluntary defined benefit pension plan contribution	-		-		-		750		750		-		-		-
Bell Aliant distributions to BCE	95		47		48		191		48		48		47		48
FCF	1,150		903		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 – Second Quarter 2013 Page 10

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

	June 30		March 31		December 31
($ millions of Canadian dollars, except where otherwise indicated) (unaudited)	2013		2013		2012
*ASSETS*
Current assets
Cash	123		116		119
Cash equivalents	2,085		1,039		10
Trade and other receivables	2,752		2,794		2,910
Current tax receivable	17		15		36
Inventory	421		390		392
Prepaid expenses	485		468		301
Other current assets	148		138		145
Total current assets	6,031		4,960		3,913
Non-current assets
Property, plant and equipment	20,095		19,951		20,007
Intangible assets	8,135		8,197		8,183
Deferred tax assets	236		285		244
Investments in associates and joint ventures	808		812		800
Other non-current assets	697		784		637
Goodwill	7,186		7,189		7,185
Total non-current assets	37,157		37,218		37,056
Total assets	43,188		42,178		40,969
*LIABILITIES*
Current liabilities
Trade payables and other liabilities	3,701		3,576		3,916
Interest payable	160		146		128
Dividends payable	472		472		453
Current tax liabilities	358		170		113
Debt due within one year	3,416		3,131		2,136
Total current liabilities	8,107		7,495		6,746
Non-current liabilities
Long-term debt	14,374		13,998		13,886
Deferred tax liabilities	958		793		761
Post-employment benefit obligation	2,680		3,356		3,422
Other non-current liabilities	1,241		1,380		1,429
Total non-current liabilities	19,253		19,527		19,498
Total liabilities	27,360		27,022		26,244

*EQUITY*
Equity attributable to BCE shareholders
Preferred shares	3,395		3,395		3,395
Common shares	13,629		13,629		13,611
Contributed surplus	2,594		2,581		2,557
Accumulated other comprehensive income (loss)	16		(4	)	(6	)
Deficit	(4,959	)	(5,534	)	(5,682	)
Equity attributable to BCE shareholders	14,675		14,067		13,875
Non-controlling interest	1,153		1,089		850
Total equity	15,828		15,156		14,725
Total liabilities and equity	43,188		42,178		40,969

Number of common shares outstanding	775.9		775.9		775.4

BCE Supplementary Financial Information – Second Quarter 2013 Page 11

BCE ⁽¹⁾
Consolidated Cash Flow Data ⁽²⁾

		Q2			Q2						YTD			YTD
($ millions of Canadian dollars, except where otherwise indicated) (unaudited)		2013			2012			$ change			2013			2012			$ change
Net earnings		671			836			(165	)		1,343			1,467			(124	)
Adjustments to reconcile net earnings to cash flows from operating activities
Severance, acquisition and other costs		28			20			8			61			39			22
Depreciation and amortization		842			844			(2	)		1,680			1,671			9
Post-employment benefit plans cost		107			95			12			221			194			27
Net interest expense		225			206			19			445			413			32
Gains on investments		(1	)		-			(1	)		(3	)		(8	)		5
Income taxes		196			157			39			437			348			89
Contributions to post-employment benefit plans		(76	)		(89	)		13			(174	)		(175	)		1
Payments under other post-employment benefit plans		(18	)		(18	)		-			(36	)		(36	)		-
Severance and other costs paid		(45	)		(49	)		4			(94	)		(147	)		53
Acquisition costs paid		(8	)		(32	)		24			(18	)		(57	)		39
Interest paid		(206	)		(197	)		(9	)		(402	)		(377	)		(25	)
Income taxes paid (net of refunds)		(37	)		(47	)		10			(185	)		(151	)		(34	)
Operating assets and liabilities		190			178			12			(367	)		(75	)		(292	)
Cash flows from operating activities		1,868			1,904			(36	)		2,908			3,106			(198	)
Bell Aliant dividends/distributions paid to BCE		47			47			-			95			95			-
Capital expenditures		(830	)		(952	)		122			(1,552	)		(1,769	)		217
Cash dividends paid on preferred shares		(32	)		(34	)		2			(58	)		(67	)		9
Cash dividends/distributions paid by subsidiaries to non-controlling interest		(74	)		(91	)		17			(147	)		(170	)		23
Acquisition costs paid		8			32			(24	)		18			57			(39	)
Bell Aliant Free Cash Flow		(84	)		(100	)		16			(114	)		(115	)		1
Free Cash Flow ⁽³⁾		903			806			97			1,150			1,137			13
Bell Aliant free cash flow, excluding dividends/distributions paid		37			53			(16	)		19			20			(1	)
Business acquisitions		-			-			-			(5	)		(2	)		(3	)
Acquisition costs paid		(8	)		(32	)		24			(18	)		(57	)		39
Business dispositions		1			-			1			1			-			1
Increase in investments		(1	)		(1	)		-			(1	)		(2	)		1
Decrease in investments		3			1			2			5			9			(4	)
Other investing activities		14			4			10			14			5			9
(Decrease) Increase in notes payable and bank advances		(321	)		(387	)		66			17			(121	)		138
Reduction in securitized trade receivables		-			(13	)		13			(14	)		(25	)		11
Issue of long-term debt		1,408			1,011			397			2,415			1,022			1,393
Repayment of long-term debt		(513	)		(633	)		120			(802	)		(718	)		(84	)
Cash dividends paid on common shares		(452	)		(420	)		(32	)		(892	)		(823	)		(69	)
Issue of common shares		-			8			(8	)		13			26			(13	)
Repurchase of common shares		-			-			-			-			(107	)		107
Issue of preferred shares		-			-			-			-			280			(280	)
Issue of equity securities by subsidiaries to non-controlling interest		-			1			(1	)		230			2			228
Other financing activities		(18	)		(6	)		(12	)		(53	)		(30	)		(23	)
		150			(414	)		564			929			(521	)		1,450
Net increase in cash and cash equivalents		1,053			392			661			2,079			616			1,463
Cash and cash equivalents at beginning of period		1,155			401			754			129			177			(48	)
Cash and cash equivalents at end of period		2,208			793			1,415			2,208			793			1,415

Other information
Cash flow per share ⁽⁹⁾	$	1.34		$	1.23		$	0.11		$	1.75		$	1.73		$	0.02
Annualized cash flow yield ⁽¹⁰⁾		7.3	%		8.3	%		(1.0	) pt		7.3	%		6.0	%		1.3	pts

BCE Supplementary Financial Information – Second Quarter 2013 Page 12

BCE
Consolidated Cash Flow Data – Historical Trend

($ millions of Canadian dollars, except where otherwise indicated) (unaudited)		YTD 2013			Q2 13			Q1 13			Total 2012			Q4 12			Q3 12			Q2 12			Q1 12
Net earnings		1,343			671			672			2,876			765			644			836			631
Adjustments to reconcile net earnings to cash flows from operating activities
Severance, acquisition and other costs		61			28			33			133			69			25			20			19
Depreciation and amortization		1,680			842			838			3,392			868			853			844			827
Post-employment benefit plans cost		221			107			114			356			92			70			95			99
Net interest expense		445			225			220			858			222			223			206			207
(Gains) losses on investments		(3	)		(1	)		(2	)		(256	)		(249	)		1			-			(8	)
Income taxes		437			196			241			760			181			231			157			191
Contributions to post-employment benefit plans		(174	)		(76	)		(98	)		(1,192	)		(936	)		(81	)		(89	)		(86	)
Payments under other post-employment benefit plans		(36	)		(18	)		(18	)		(73	)		(19	)		(18	)		(18	)		(18	)
Severance and other costs paid		(94	)		(45	)		(49	)		(231	)		(41	)		(43	)		(49	)		(98	)
Acquisition costs paid		(18	)		(8	)		(10	)		(101	)		(5	)		(39	)		(32	)		(25	)
Interest paid		(402	)		(206	)		(196	)		(835	)		(236	)		(222	)		(197	)		(180	)
Income taxes paid (net of refunds)		(185	)		(37	)		(148	)		(280	)		(91	)		(38	)		(47	)		(104	)
Operating assets and liabilities		(367	)		190			(557	)		153			243			(15	)		178			(253	)
Cash flows from operating activities		2,908			1,868			1,040			5,560			863			1,591			1,904			1,202
Bell Aliant dividends/distributions paid to BCE		95			47			48			191			48			48			47			48
Capital expenditures		(1,552	)		(830	)		(722	)		(3,515	)		(914	)		(832	)		(952	)		(817	)
Cash dividends paid on preferred shares		(58	)		(32	)		(26	)		(133	)		(39	)		(27	)		(34	)		(33	)
Cash dividends/distributions paid by subsidiaries to non-controlling interest		(147	)		(74	)		(73	)		(340	)		(85	)		(85	)		(91	)		(79	)
Acquisition costs paid		18			8			10			101			5			39			32			25
Voluntary defined benefit pension plan contribution		-			-			-			750			750			-			-			-
Bell Aliant Free Cash Flow		(114	)		(84	)		(30	)		(186	)		(23	)		(48	)		(100	)		(15	)
Free Cash Flow		1,150			903			247			2,428			605			686			806			331
Bell Aliant free cash flow, excluding dividends/distributions paid		19			37			(18	)		(5	)		(25	)		-			53			(33	)
Business acquisitions		(5	)		-			(5	)		(13	)		(8	)		(3	)		-			(2	)
Acquisition costs paid		(18	)		(8	)		(10	)		(101	)		(5	)		(39	)		(32	)		(25	)
Voluntary defined benefit pension plan contribution		-			-			-			(750	)		(750	)		-			-			-
Business dispositions		1			1			-			-			-			-			-			-
Increase in investments		(1	)		(1	)		-			(593	)		(192	)		(399	)		(1	)		(1	)
Decrease in investments		5			3			2			10			1			-			1			8
Other investing activities		14			14			-			10			4			1			4			1
Increase (decrease) in notes payable and bank advances		17			(321	)		338			377			483			15			(387	)		266
(Reduction) increase in securitized trade receivables		(14	)		-			(14	)		(15	)		-			10			(13	)		(12	)
Issue of long-term debt		2,415			1,408			1,007			1,055			22			11			1,011			11
Repayment of long-term debt		(802	)		(513	)		(289	)		(946	)		(112	)		(116	)		(633	)		(85	)
Cash dividends paid on common shares		(892	)		(452	)		(440	)		(1,683	)		(440	)		(420	)		(420	)		(403	)
Issue of common shares		13			-			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			-			230			11			-			9			1			1
Other financing activities		(53	)		(18	)		(35	)		(45	)		(14	)		(1	)		(6	)		(24	)
		929			150			779			(2,476	)		(1,027	)		(928	)		(414	)		(107	)
Net increase (decrease) in cash and cash equivalents		2,079			1,053			1,026			(48	)		(422	)		(242	)		392			224
Cash and cash equivalents at beginning of period		129			1,155			129			177			551			793			401			177
Cash and cash equivalents at end of period		2,208			2,208			1,155			129			129			551			793			401

Other information
Cash flow per share	$	1.75		$	1.34		$	0.41		$	2.64		$	(0.07	)	$	0.98		$	1.23		$	0.50
Annualized cash flow yield		7.3	%		7.3	%		6.4	%		7.3	%		7.3	%		7.1	%		8.3	%		7.6	%

BCE Supplementary Financial Information – Second 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 Q2 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 – Second 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 – Second Quarter 2013 Page 15