EX-99.2 3 supp_q114.htm SUPPLEMENTARY FINANCIAL INFORMATION - FIRST QUARTER 2014

Exhibit 99.2

BCE (1)
Consolidated Operational Data (2)

($ millions of Canadian dollars, except share amounts) (unaudited) |  | Q1 2014 |  |  | Q1 2013 |  |  |  | $ change |  | % change |
Operating revenues |  | 5,099 |  |  | 4,919 |  |  |  | 180 |  | 3.7 | %
Operating costs (A) |  | (3,003 | ) |  | (2,880 | ) |  |  | (123 | ) | (4.3 | %)
Post-employment benefit plans service cost |  | (74 | ) |  | (77 | ) |  |  | 3 |  | 3.9 | %
EBITDA (3) |  | 2,022 |  |  | 1,962 |  |  |  | 60 |  | 3.1 | %
EBITDA margin (3) |  | 39.7 | % |  | 39.9 | % |  |  |  |  | (0.2 | ) pts
Severance, acquisition and other costs |  | (38 | ) |  | (33 | ) |  |  | (5 | ) | (15.2 | %)
Depreciation |  | (699 | ) |  | (675 | ) |  |  | (24 | ) | (3.6 | %)
Amortization |  | (167 | ) |  | (163 | ) |  |  | (4 | ) | (2.5 | %)
Finance costs |  |  |  |  |  |  |  |  |  |  |  |
Interest expense |  | (235 | ) |  | (221 | ) |  |  | (14 | ) | (6.3 | %)
Interest on post-employment benefit obligations |  | (25 | ) |  | (37 | ) |  |  | 12 |  | 32.4 | %
Other income |  | 87 |  |  | 80 |  |  |  | 7 |  | 8.8 | %
Income taxes |  | (231 | ) |  | (241 | ) |  |  | 10 |  | 4.1 | %
Net earnings |  | 714 |  |  | 672 |  |  |  | 42 |  | 6.3 | %
Net earnings attributable to: |  |  |  |  |  |  |  |  |  |  |  |
Common shareholders |  | 615 |  |  | 566 |  |  |  | 49 |  | 8.7 | %
Preferred shareholders |  | 33 |  |  | 33 |  |  |  | - |  | 0.0 | %
Non-controlling interest |  | 66 |  |  | 73 |  |  |  | (7 | ) | (9.6 | %)
Net earnings |  | 714 |  |  | 672 |  |  |  | 42 |  | 6.3 | %
Net earnings per common share - basic | $ | 0.79 |  | $ | 0.73 |  |  | $ | 0.06 |  | 8.2 | %
Net earnings per common share - diluted | $ | 0.79 |  | $ | 0.73 |  |  | $ | 0.06 |  | 8.2 | %
Dividends per common share | $ | 0.6175 |  | $ | 0.5825 |  |  | $ | 0.035 |  | 6.0 | %
Average number of common shares outstanding - basic (millions) |  | 776.5 |  |  | 775.7 |  |  |  |  |  |  |
Average number of common shares outstanding - diluted (millions) |  | 777.2 |  |  | 776.3 |  |  |  |  |  |  |
Number of common shares outstanding (millions) |  | 777.3 |  |  | 775.9 |  |  |  |  |  |  |
Adjusted Net Earnings and EPS |  |  |  |  |  |  |  |  |  |  |  |
Net earnings attributable to common shareholders |  | 615 |  |  | 566 |  |  |  | 49 |  | 8.7 | %
Severance, acquisition and other costs |  | 23 |  |  | 23 |  |  |  | - |  | 0.0 | %
Net gains on investments |  | (12 | ) |  | (2 | ) |  |  | (10 | ) | n.m. |
Premiums on early redemption of debt |  | - |  |  | 12 |  |  |  | (12 | ) | (100.0 | %)
Adjusted net earnings (3) |  | 626 |  |  | 599 |  |  |  | 27 |  | 4.5 | %
Impact on net earnings per share | $ | 0.02 |  | $ | 0.04 |  |  | $ | (0.02 | ) | (50.0 | %)
Adjusted EPS (3) | $ | 0.81 |  | $ | 0.77 |  |  | $ | 0.04 |  | 5.2 | %

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

n.m. : not meaningful

BCE Supplementary Financial Information – First Quarter 2014 Page 2

BCE
Consolidated Operational Data - Historical Trend

($ millions of Canadian dollars, except share amounts) (unaudited) |  | Q1 14 |  |  |  | Total 2013 |  |  |  | Q4 13 |  |  | Q3 13 |  |  | Q2 13 |  |  | Q1 13 |
Operating revenues |  | 5,099 |  |  |  | 20,400 |  |  |  | 5,382 |  |  | 5,099 |  |  | 5,000 |  |  | 4,919 |
Operating costs (A) |  | (3,003 | ) |  |  | (12,019 | ) |  |  | (3,312 | ) |  | (2,962 | ) |  | (2,865 | ) |  | (2,880 | )
Post-employment benefit plans service cost |  | (74 | ) |  |  | (292 | ) |  |  | (72 | ) |  | (74 | ) |  | (69 | ) |  | (77 | )
EBITDA |  | 2,022 |  |  |  | 8,089 |  |  |  | 1,998 |  |  | 2,063 |  |  | 2,066 |  |  | 1,962 |
EBITDA margin |  | 39.7 | % |  |  | 39.7 | % |  |  | 37.1 | % |  | 40.5 | % |  | 41.3 | % |  | 39.9 | %
Severance, acquisition and other costs |  | (38 | ) |  |  | (406 | ) |  |  | (48 | ) |  | (297 | ) |  | (28 | ) |  | (33 | )
Depreciation |  | (699 | ) |  |  | (2,734 | ) |  |  | (695 | ) |  | (683 | ) |  | (681 | ) |  | (675 | )
Amortization |  | (167 | ) |  |  | (646 | ) |  |  | (160 | ) |  | (162 | ) |  | (161 | ) |  | (163 | )
Finance costs |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest expense |  | (235 | ) |  |  | (931 | ) |  |  | (240 | ) |  | (242 | ) |  | (228 | ) |  | (221 | )
Interest on post-employment benefit obligations |  | (25 | ) |  |  | (150 | ) |  |  | (37 | ) |  | (38 | ) |  | (38 | ) |  | (37 | )
Other income (expense) |  | 87 |  |  |  | (6 | ) |  |  | 1 |  |  | (24 | ) |  | (63 | ) |  | 80 |
Income taxes |  | (231 | ) |  |  | (828 | ) |  |  | (226 | ) |  | (165 | ) |  | (196 | ) |  | (241 | )
Net earnings |  | 714 |  |  |  | 2,388 |  |  |  | 593 |  |  | 452 |  |  | 671 |  |  | 672 |
Net earnings attributable to: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Common shareholders |  | 615 |  |  |  | 1,975 |  |  |  | 495 |  |  | 343 |  |  | 571 |  |  | 566 |
Preferred shareholders |  | 33 |  |  |  | 131 |  |  |  | 33 |  |  | 32 |  |  | 33 |  |  | 33 |
Non-controlling interest |  | 66 |  |  |  | 282 |  |  |  | 65 |  |  | 77 |  |  | 67 |  |  | 73 |
Net earnings |  | 714 |  |  |  | 2,388 |  |  |  | 593 |  |  | 452 |  |  | 671 |  |  | 672 |
Net earnings per common share - basic | $ | 0.79 |  |  | $ | 2.55 |  |  | $ | 0.64 |  | $ | 0.44 |  | $ | 0.74 |  | $ | 0.73 |
Net earnings per common share - diluted | $ | 0.79 |  |  | $ | 2.54 |  |  | $ | 0.63 |  | $ | 0.44 |  | $ | 0.74 |  | $ | 0.73 |
Dividends per common share | $ | 0.6175 |  |  | $ | 2.3300 |  |  | $ | 0.5825 |  | $ | 0.5825 |  | $ | 0.5825 |  | $ | 0.5825 |
Average number of common shares outstanding - basic (millions) |  | 776.5 |  |  |  | 775.8 |  |  |  | 775.9 |  |  | 775.9 |  |  | 775.9 |  |  | 775.7 |
Average number of common shares outstanding - diluted (millions) |  | 777.2 |  |  |  | 776.4 |  |  |  | 776.6 |  |  | 776.3 |  |  | 776.6 |  |  | 776.3 |
Number of common shares outstanding (millions) |  | 777.3 |  |  |  | 775.9 |  |  |  | 775.9 |  |  | 775.9 |  |  | 775.9 |  |  | 775.9 |
Adjusted Net Earnings and EPS |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net earnings attributable to common shareholders |  | 615 |  |  |  | 1,975 |  |  |  | 495 |  |  | 343 |  |  | 571 |  |  | 566 |
Severance, acquisition and other costs |  | 23 |  |  |  | 299 |  |  |  | 33 |  |  | 222 |  |  | 21 |  |  | 23 |
Net (gains) losses on investments |  | (12 | ) |  |  | 7 |  |  |  | 12 |  |  | (2 | ) |  | (1 | ) |  | (2 | )
Premiums on early redemption of debt |  | - |  |  |  | 36 |  |  |  | - |  |  | 21 |  |  | 3 |  |  | 12 |
Adjusted net earnings |  | 626 |  |  |  | 2,317 |  |  |  | 540 |  |  | 584 |  |  | 594 |  |  | 599 |
Impact on net earnings per share | $ | 0.02 |  |  | $ | 0.44 |  |  | $ | 0.06 |  | $ | 0.31 |  | $ | 0.03 |  | $ | 0.04 |
Adjusted EPS | $ | 0.81 |  |  | $ | 2.99 |  |  | $ | 0.70 |  | $ | 0.75 |  | $ | 0.77 |  | $ | 0.77 |

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

BCE Supplementary Financial Information – First Quarter 2014 Page 3

BCE (1)
Segmented Data (2)

($ millions of Canadian dollars, except where otherwise indicated) (unaudited) | Q1 2014 |  | Q1 2013 |  |  | $ change |  | % change |
Revenues |  |  |  |  |  |  |  |  |
Bell Wireless | 1,472 |  | 1,409 |  |  | 63 |  | 4.5 | %
Bell Wireline | 2,462 |  | 2,508 |  |  | (46 | ) | (1.8 | %)
Bell Media | 722 |  | 513 |  |  | 209 |  | 40.7 | %
Inter-segment eliminations | (118 | ) | (82 | ) |  | (36 | ) | (43.9 | %)
Total Bell | 4,538 |  | 4,348 |  |  | 190 |  | 4.4 | %
Bell Aliant | 676 |  | 684 |  |  | (8 | ) | (1.2 | %)
Inter-segment eliminations | (115 | ) | (113 | ) |  | (2 | ) | (1.8 | %)
Total BCE | 5,099 |  | 4,919 |  |  | 180 |  | 3.7 | %
Operating costs |  |  |  |  |  |  |  |  |
Bell Wireless | (844 | ) | (824 | ) |  | (20 | ) | (2.4 | %)
Bell Wireline | (1,532 | ) | (1,550 | ) |  | 18 |  | 1.2 | %
Bell Media | (572 | ) | (415 | ) |  | (157 | ) | (37.8 | %)
Inter-segment eliminations | 118 |  | 82 |  |  | 36 |  | 43.9 | %
Total Bell | (2,830 | ) | (2,707 | ) |  | (123 | ) | (4.5 | %)
Bell Aliant | (362 | ) | (363 | ) |  | 1 |  | 0.3 | %
Inter-segment eliminations | 115 |  | 113 |  |  | 2 |  | 1.8 | %
Total BCE | (3,077 | ) | (2,957 | ) |  | (120 | ) | (4.1 | %)
EBITDA |  |  |  |  |  |  |  |  |
Bell Wireless | 628 |  | 585 |  |  | 43 |  | 7.4 | %
Margin | 42.7 | % | 41.5 | % |  |  |  | 1.2 | pts
Bell Wireline | 930 |  | 958 |  |  | (28 | ) | (2.9 | %)
Margin | 37.8 | % | 38.2 | % |  |  |  | (0.4 | ) pts
Bell Media | 150 |  | 98 |  |  | 52 |  | 53.1 | %
Margin | 20.8 | % | 19.1 | % |  |  |  | 1.7 | pts
Total Bell | 1,708 |  | 1,641 |  |  | 67 |  | 4.1 | %
Margin | 37.6 | % | 37.7 | % |  |  |  | (0.1 | ) pts
Bell Aliant | 314 |  | 321 |  |  | (7 | ) | (2.2 | %)
Margin | 46.4 | % | 46.9 | % |  |  |  | (0.5 | ) pts
Total BCE | 2,022 |  | 1,962 |  |  | 60 |  | 3.1 | %
Margin | 39.7 | % | 39.9 | % |  |  |  | (0.2 | ) pts
Capital expenditures |  |  |  |  |  |  |  |  |
Bell Wireless | 117 |  | 122 |  |  | 5 |  | 4.1 | %
Capital Intensity (4) | 7.9 | % | 8.7 | % |  |  |  | 0.8 | pts
Bell Wireline | 463 |  | 460 |  |  | (3 | ) | (0.7 | %)
Capital Intensity | 18.8 | % | 18.3 | % |  |  |  | (0.5 | ) pts
Bell Media | 14 |  | 12 |  |  | (2 | ) | (16.7 | %)
Capital Intensity | 1.9 | % | 2.3 | % |  |  |  | 0.4 | pts
Total Bell | 594 |  | 594 |  |  | - |  | 0.0 | %
Capital Intensity | 13.1 | % | 13.7 | % |  |  |  | 0.6 | pts
Bell Aliant | 135 |  | 128 |  |  | (7 | ) | (5.5 | %)
Capital Intensity | 20.0 | % | 18.7 | % |  |  |  | (1.3 | ) pts
Total BCE | 729 |  | 722 |  |  | (7 | ) | (1.0 | %)
Capital Intensity | 14.3 | % | 14.7 | % |  |  |  | 0.4 | pts

BCE Supplementary Financial Information – First Quarter 2014 Page 4

BCE
Segmented Data - Historical Trend

($ millions of Canadian dollars, except where otherwise indicated) (unaudited) | Q1 14 |  |  | Total 2013 |  |  | Q4 13 |  | Q3 13 |  | Q2 13 |  | Q1 13 |
Revenues |  |  |  |  |  |  |  |  |  |  |  |  |  |
Bell Wireless | 1,472 |  |  | 5,849 |  |  | 1,505 |  | 1,493 |  | 1,442 |  | 1,409 |
Bell Wireline | 2,462 |  |  | 10,097 |  |  | 2,601 |  | 2,482 |  | 2,506 |  | 2,508 |
Bell Media | 722 |  |  | 2,557 |  |  | 821 |  | 664 |  | 559 |  | 513 |
Inter-segment eliminations | (118 | ) |  | (394 | ) |  | (114 | ) | (115 | ) | (83 | ) | (82 | )
Total Bell | 4,538 |  |  | 18,109 |  |  | 4,813 |  | 4,524 |  | 4,424 |  | 4,348 |
Bell Aliant | 676 |  |  | 2,759 |  |  | 688 |  | 696 |  | 691 |  | 684 |
Inter-segment eliminations | (115 | ) |  | (468 | ) |  | (119 | ) | (121 | ) | (115 | ) | (113 | )
Total BCE | 5,099 |  |  | 20,400 |  |  | 5,382 |  | 5,099 |  | 5,000 |  | 4,919 |
Operating costs |  |  |  |  |  |  |  |  |  |  |  |  |  |
Bell Wireless | (844 | ) |  | (3,509 | ) |  | (976 | ) | (876 | ) | (833 | ) | (824 | )
Bell Wireline | (1,532 | ) |  | (6,303 | ) |  | (1,667 | ) | (1,559 | ) | (1,527 | ) | (1,550 | )
Bell Media | (572 | ) |  | (1,874 | ) |  | (591 | ) | (465 | ) | (403 | ) | (415 | )
Inter-segment eliminations | 118 |  |  | 394 |  |  | 114 |  | 115 |  | 83 |  | 82 |
Total Bell | (2,830 | ) |  | (11,292 | ) |  | (3,120 | ) | (2,785 | ) | (2,680 | ) | (2,707 | )
Bell Aliant | (362 | ) |  | (1,487 | ) |  | (383 | ) | (372 | ) | (369 | ) | (363 | )
Inter-segment eliminations | 115 |  |  | 468 |  |  | 119 |  | 121 |  | 115 |  | 113 |
Total BCE | (3,077 | ) |  | (12,311 | ) |  | (3,384 | ) | (3,036 | ) | (2,934 | ) | (2,957 | )
EBITDA |  |  |  |  |  |  |  |  |  |  |  |  |  |
Bell Wireless | 628 |  |  | 2,340 |  |  | 529 |  | 617 |  | 609 |  | 585 |
Margin | 42.7 | % |  | 40.0 | % |  | 35.1 | % | 41.3 | % | 42.2 | % | 41.5 | %
Bell Wireline | 930 |  |  | 3,794 |  |  | 934 |  | 923 |  | 979 |  | 958 |
Margin | 37.8 | % |  | 37.6 | % |  | 35.9 | % | 37.2 | % | 39.1 | % | 38.2 | %
Bell Media | 150 |  |  | 683 |  |  | 230 |  | 199 |  | 156 |  | 98 |
Margin | 20.8 | % |  | 26.7 | % |  | 28.0 | % | 30.0 | % | 27.9 | % | 19.1 | %
Total Bell | 1,708 |  |  | 6,817 |  |  | 1,693 |  | 1,739 |  | 1,744 |  | 1,641 |
Margin | 37.6 | % |  | 37.6 | % |  | 35.2 | % | 38.4 | % | 39.4 | % | 37.7 | %
Bell Aliant | 314 |  |  | 1,272 |  |  | 305 |  | 324 |  | 322 |  | 321 |
Margin | 46.4 | % |  | 46.1 | % |  | 44.3 | % | 46.6 | % | 46.6 | % | 46.9 | %
Total BCE | 2,022 |  |  | 8,089 |  |  | 1,998 |  | 2,063 |  | 2,066 |  | 1,962 |
Margin | 39.7 | % |  | 39.7 | % |  | 37.1 | % | 40.5 | % | 41.3 | % | 39.9 | %
Capital expenditures |  |  |  |  |  |  |  |  |  |  |  |  |  |
Bell Wireless | 117 |  |  | 639 |  |  | 226 |  | 157 |  | 134 |  | 122 |
Capital Intensity | 7.9 | % |  | 10.9 | % |  | 15.0 | % | 10.5 | % | 9.3 | % | 8.7 | %
Bell Wireline | 463 |  |  | 2,247 |  |  | 702 |  | 562 |  | 523 |  | 460 |
Capital Intensity | 18.8 | % |  | 22.3 | % |  | 27.0 | % | 22.6 | % | 20.9 | % | 18.3 | %
Bell Media | 14 |  |  | 115 |  |  | 64 |  | 23 |  | 16 |  | 12 |
Capital Intensity | 1.9 | % |  | 4.5 | % |  | 7.8 | % | 3.5 | % | 2.9 | % | 2.3 | %
Total Bell | 594 |  |  | 3,001 |  |  | 992 |  | 742 |  | 673 |  | 594 |
Capital Intensity | 13.1 | % |  | 16.6 | % |  | 20.6 | % | 16.4 | % | 15.2 | % | 13.7 | %
Bell Aliant | 135 |  |  | 570 |  |  | 147 |  | 138 |  | 157 |  | 128 |
Capital Intensity | 20.0 | % |  | 20.7 | % |  | 21.4 | % | 19.8 | % | 22.7 | % | 18.7 | %
Total BCE | 729 |  |  | 3,571 |  |  | 1,139 |  | 880 |  | 830 |  | 722 |
Capital Intensity | 14.3 | % |  | 17.5 | % |  | 21.2 | % | 17.3 | % | 16.6 | % | 14.7 | %

BCE Supplementary Financial Information – First Quarter 2014 Page 5

Bell Wireless (1)

($ millions of Canadian dollars, except where otherwise indicated) (unaudited) | Q1 2014 |  | Q1 2013 |  |  | % change |
Bell Wireless |  |  |  |  |  |  |
Revenue |  |  |  |  |  |  |
Service | 1,364 |  | 1,303 |  |  | 4.7 | %
Product | 94 |  | 93 |  |  | 1.1 | %
Total external Bell Wireless revenues | 1,458 |  | 1,396 |  |  | 4.4 | %
Inter-segment | 14 |  | 13 |  |  | 7.7 | %
Total Bell Wireless operating revenues | 1,472 |  | 1,409 |  |  | 4.5 | %
Operating costs | (844 | ) | (824 | ) |  | (2.4 | %)
EBITDA | 628 |  | 585 |  |  | 7.4 | %
EBITDA margin (Total revenues) | 42.7 | % | 41.5 | % |  | 1.2 | pts
EBITDA margin (Service revenues) | 46.0 | % | 44.9 | % |  | 1.1 | pts
Capital expenditures | 117 |  | 122 |  |  | 4.1 | %
Capital intensity | 7.9 | % | 8.7 | % |  | 0.8 | pts
Wireless gross activations | 351,729 |  | 371,217 |  |  | (5.2 | %)
Postpaid | 275,163 |  | 295,136 |  |  | (6.8 | %)
Wireless net activations | (15,678 | ) | (8,957 | ) |  | (75.0 | %)
Postpaid | 33,964 |  | 59,497 |  |  | (42.9 | %)
Wireless subscribers end of period (EOP) | 7,762,656 |  | 7,672,075 |  |  | 1.2 | %
Postpaid | 6,711,656 |  | 6,484,542 |  |  | 3.5 | %
Average revenue per unit (ARPU)($/month) (4) | 57.90 |  | 55.92 |  |  | 3.5 | %
Churn (%) (average per month) (4) | 1.58 | % | 1.65 | % |  | 0.07 | pts
Prepaid | 3.67 | % | 3.79 | % |  | 0.12 | pts
Postpaid | 1.24 | % | 1.25 | % |  | 0.01 | pts
Cost of acquisition (COA) (4) ($/sub) | 442 |  | 404 |  |  | (9.4 | %)

BCE Supplementary Financial Information – First Quarter 2014 Page 6

Bell Wireless - Historical Trend

($ millions of Canadian dollars, except where otherwise indicated) (unaudited) | Q1 14 |  |  | Total 2013 |  |  | Q4 13 |  | Q3 13 |  | Q2 13 |  | Q1 13 |
Bell Wireless |  |  |  |  |  |  |  |  |  |  |  |  |  |
Revenue |  |  |  |  |  |  |  |  |  |  |  |  |  |
Service | 1,364 |  |  | 5,362 |  |  | 1,359 |  | 1,372 |  | 1,328 |  | 1,303 |
Product | 94 |  |  | 432 |  |  | 134 |  | 106 |  | 99 |  | 93 |
Total external Bell Wireless revenues | 1,458 |  |  | 5,794 |  |  | 1,493 |  | 1,478 |  | 1,427 |  | 1,396 |
Inter-segment | 14 |  |  | 55 |  |  | 12 |  | 15 |  | 15 |  | 13 |
Total Bell Wireless operating revenues | 1,472 |  |  | 5,849 |  |  | 1,505 |  | 1,493 |  | 1,442 |  | 1,409 |
Operating costs | (844 | ) |  | (3,509 | ) |  | (976 | ) | (876 | ) | (833 | ) | (824 | )
EBITDA | 628 |  |  | 2,340 |  |  | 529 |  | 617 |  | 609 |  | 585 |
EBITDA margin (Total revenues) | 42.7 | % |  | 40.0 | % |  | 35.1 | % | 41.3 | % | 42.2 | % | 41.5 | %
EBITDA margin (Service revenues) | 46.0 | % |  | 43.6 | % |  | 38.9 | % | 45.0 | % | 45.9 | % | 44.9 | %
Capital expenditures | 117 |  |  | 639 |  |  | 226 |  | 157 |  | 134 |  | 122 |
Capital intensity | 7.9 | % |  | 10.9 | % |  | 15.0 | % | 10.5 | % | 9.3 | % | 8.7 | %
Wireless gross activations | 351,729 |  |  | 1,694,055 |  |  | 462,469 |  | 438,722 |  | 421,647 |  | 371,217 |
Postpaid | 275,163 |  |  | 1,332,423 |  |  | 368,154 |  | 333,081 |  | 336,052 |  | 295,136 |
Wireless net activations | (15,678 | ) |  | 217,768 |  |  | 93,700 |  | 89,459 |  | 43,566 |  | (8,957 | )
Postpaid | 33,964 |  |  | 378,121 |  |  | 119,520 |  | 102,714 |  | 96,390 |  | 59,497 |
Wireless subscribers EOP (A) | 7,762,656 |  |  | 7,778,334 |  |  | 7,778,334 |  | 7,805,100 |  | 7,715,641 |  | 7,672,075 |
Postpaid (A) | 6,711,656 |  |  | 6,677,692 |  |  | 6,677,692 |  | 6,683,646 |  | 6,580,932 |  | 6,484,542 |
Average revenue per unit (ARPU)($/month) | 57.90 |  |  | 57.25 |  |  | 57.92 |  | 58.30 |  | 56.85 |  | 55.92 |
Churn (%)(average per month) | 1.58 | % |  | 1.60 | % |  | 1.59 | % | 1.50 | % | 1.64 | % | 1.65 | %
Prepaid | 3.67 | % |  | 3.55 | % |  | 3.41 | % | 3.27 | % | 3.71 | % | 3.79 | %
Postpaid | 1.24 | % |  | 1.25 | % |  | 1.29 | % | 1.20 | % | 1.27 | % | 1.25 | %
Cost of acquisition (COA)($/sub) | 442 |  |  | 421 |  |  | 468 |  | 403 |  | 402 |  | 404 |

(A) | In Q4 2013, following a review of our wireless subscriber metrics, our 2013 postpaid subscriber base was reduced by 99,098 customers to exclude all machine-to-machine subscribers. Additionally, our postpaid subscriber base was reduced by 18,354 subscribers to adjust for customer deactivations and by 8,022 subscribers subsequent to a review of customer accounts. Our prepaid subscriber base was increased by 5,008 customers subsequent to a review of subscriber metrics.

BCE Supplementary Financial Information – First Quarter 2014 Page 7

Bell Wireline (1)

($ millions of Canadian dollars, except where otherwise indicated) (unaudited) | Q1 2014 |  | Q1 2013 |  |  | % change |
Bell Wireline |  |  |  |  |  |  |
Data | 1,463 |  | 1,433 |  |  | 2.1 | %
Local & access | 603 |  | 646 |  |  | (6.7 | %)
Long distance | 162 |  | 184 |  |  | (12.0 | %)
Equipment & other | 149 |  | 164 |  |  | (9.1 | %)
Total external revenues | 2,377 |  | 2,427 |  |  | (2.1 | %)
Inter-segment revenues | 85 |  | 81 |  |  | 4.9 | %
Total Bell Wireline operating revenues | 2,462 |  | 2,508 |  |  | (1.8 | %)
Operating costs | (1,532 | ) | (1,550 | ) |  | 1.2 | %
EBITDA | 930 |  | 958 |  |  | (2.9 | %)
EBITDA Margin | 37.8 | % | 38.2 | % |  | (0.4 | ) pts
Capital expenditures | 463 |  | 460 |  |  | (0.7 | %)
Capital intensity | 18.8 | % | 18.3 | % |  | (0.5 | ) pts
Local |  |  |  |  |  |  |
Network access services (NAS) |  |  |  |  |  |  |
Residential | 2,586,791 |  | 2,856,757 |  |  | (9.5 | %)
Business | 2,554,225 |  | 2,679,736 |  |  | (4.7 | %)
Total | 5,141,016 |  | 5,536,493 |  |  | (7.1 | %)
Network access service net (losses)/activations |  |  |  |  |  |  |
Residential | (65,638 | ) | (83,557 | ) |  | 21.4 | %
Business | (35,595 | ) | (24,889 | ) |  | (43.0 | %)
Total | (101,233 | ) | (108,446 | ) |  | 6.7 | %
High-speed Internet |  |  |  |  |  |  |
High-speed internet net activations | 15,627 |  | 3,952 |  |  | n.m. |
High-speed internet subscribers EOP | 2,200,170 |  | 2,130,773 |  |  | 3.3 | %
TV |  |  |  |  |  |  |
Net subscriber activations | 28,561 |  | 13,971 |  |  | n.m. |
Fibe TV | 54,680 |  | 47,463 |  |  | 15.2 | %
Total subscribers EOP | 2,306,994 |  | 2,169,954 |  |  | 6.3 | %
Fibe TV | 534,110 |  | 295,761 |  |  | 80.6 | %

n.m. : not meaningful

BCE Supplementary Financial Information – First Quarter 2014 Page 8

Bell Wireline - Historical Trend

($ millions of Canadian dollars, except where otherwise indicated) (unaudited) | Q1 14 |  |  | Total 2013 |  |  | Q4 13 |  | Q3 13 |  | Q2 13 |  | Q1 13 |
Bell Wireline |  |  |  |  |  |  |  |  |  |  |  |  |  |
Data | 1,463 |  |  | 5,828 |  |  | 1,513 |  | 1,426 |  | 1,456 |  | 1,433 |
Local & access | 603 |  |  | 2,497 |  |  | 606 |  | 613 |  | 632 |  | 646 |
Long distance | 162 |  |  | 722 |  |  | 171 |  | 184 |  | 183 |  | 184 |
Equipment & other | 149 |  |  | 707 |  |  | 222 |  | 168 |  | 153 |  | 164 |
Total external revenues | 2,377 |  |  | 9,754 |  |  | 2,512 |  | 2,391 |  | 2,424 |  | 2,427 |
Inter-segment revenues | 85 |  |  | 343 |  |  | 89 |  | 91 |  | 82 |  | 81 |
Total Bell Wireline operating revenues | 2,462 |  |  | 10,097 |  |  | 2,601 |  | 2,482 |  | 2,506 |  | 2,508 |
Operating costs | (1,532 | ) |  | (6,303 | ) |  | (1,667 | ) | (1,559 | ) | (1,527 | ) | (1,550 | )
EBITDA | 930 |  |  | 3,794 |  |  | 934 |  | 923 |  | 979 |  | 958 |
EBITDA Margin | 37.8 | % |  | 37.6 | % |  | 35.9 | % | 37.2 | % | 39.1 | % | 38.2 | %
Capital expenditures | 463 |  |  | 2,247 |  |  | 702 |  | 562 |  | 523 |  | 460 |
Capital intensity | 18.8 | % |  | 22.3 | % |  | 27.0 | % | 22.6 | % | 20.9 | % | 18.3 | %
Local |  |  |  |  |  |  |  |  |  |  |  |  |  |
Network access services (NAS) |  |  |  |  |  |  |  |  |  |  |  |  |  |
Residential | 2,586,791 |  |  | 2,652,429 |  |  | 2,652,429 |  | 2,715,710 |  | 2,774,667 |  | 2,856,757 |
Business | 2,554,225 |  |  | 2,589,820 |  |  | 2,589,820 |  | 2,622,298 |  | 2,650,824 |  | 2,679,736 |
Total | 5,141,016 |  |  | 5,242,249 |  |  | 5,242,249 |  | 5,338,008 |  | 5,425,491 |  | 5,536,493 |
Network access service net (losses)/activations |  |  |  |  |  |  |  |  |  |  |  |  |  |
Residential | (65,638 | ) |  | (287,885 | ) |  | (63,281 | ) | (58,957 | ) | (82,090 | ) | (83,557 | )
Business | (35,595 | ) |  | (114,805 | ) |  | (32,478 | ) | (28,526 | ) | (28,912 | ) | (24,889 | )
Total | (101,233 | ) |  | (402,690 | ) |  | (95,759 | ) | (87,483 | ) | (111,002 | ) | (108,446 | )
High-speed Internet |  |  |  |  |  |  |  |  |  |  |  |  |  |
High-speed internet net activations | 15,627 |  |  | 57,722 |  |  | 15,690 |  | 35,634 |  | 2,446 |  | 3,952 |
High-speed internet subscribers EOP | 2,200,170 |  |  | 2,184,543 |  |  | 2,184,543 |  | 2,168,853 |  | 2,133,219 |  | 2,130,773 |
TV |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net subscriber activations | 28,561 |  |  | 122,450 |  |  | 36,189 |  | 46,685 |  | 25,605 |  | 13,971 |
Fibe TV | 54,680 |  |  | 231,132 |  |  | 60,301 |  | 72,813 |  | 50,555 |  | 47,463 |
Total subscribers EOP | 2,306,994 |  |  | 2,278,433 |  |  | 2,278,433 |  | 2,242,244 |  | 2,195,559 |  | 2,169,954 |
Fibe TV | 534,110 |  |  | 479,430 |  |  | 479,430 |  | 419,129 |  | 346,316 |  | 295,761 |

BCE Supplementary Financial Information – First Quarter 2014 Page 9

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

BCE - Net debt and preferred shares |  |  |  |  |  |
At March 31, 2014 | BCE
($ millions of Canadian dollars, except where otherwise indicated) (unaudited) |  |  |  |  |  |
|  |  | Bell |  |  |
| Bell |  | Aliant |  | BCE |
Debt due within one year | 2,501 |  | 700 |  | 3,201 |
Long-term debt | 13,784 |  | 2,226 |  | 16,010 |
Preferred shares - BCE (A) | 1,698 |  | - |  | 1,698 |
Cash and cash equivalents | (682 | ) | (38 | ) | (720 | )
Net debt (3) | 17,301 |  | 2,888 |  | 20,189 |

Bell - Net debt and preferred shares |  |  |  |
($ millions of Canadian dollars, except where otherwise indicated) (unaudited) |  |  |  |
| March 31 |  | Dec. 31 |
| 2014 |  | 2013 |
Debt due within one year | 2,501 |  | 2,286 |
Long-term debt | 13,784 |  | 13,765 |
Preferred shares - BCE (A) | 1,698 |  | 1,698 |
Cash and cash equivalents | (682 | ) | (319 | )
Net Debt | 17,301 |  | 17,430 |
Net Debt / Adjusted EBITDA (4) | 2.46 |  | 2.49 |
Adjusted EBITDA /Net interest expense, excluding interest on post-employment benefit obligations and including 50% of preferred dividends (4) | 8.27 |  | 8.40 |

Bell Media Inc. - Proportionate Information |  |  |  |  |  |  |  |  |  |  |  |  |
($ millions of Canadian dollars, except where otherwise indicated) (unaudited) | Q1 2014 |  |  | Total 2013 |  | Q4 2013 |  | Q3 2013 |  | Q2 2013 |  | Q1 2013 |
Proportionate Net Debt | 30 |  |  | 103 |  | 103 |  | 143 |  | 202 |  | 206 |
Proportionate EBITDA | 129 |  |  | 593 |  | 209 |  | 172 |  | 134 |  | 78 |

Cash Flow Information |  |  |  |  |  |  |  |
($ millions of Canadian dollars, except where otherwise indicated) (unaudited) | Q1 2014 |  | Q1 2013 |  | $ change |  | % change |
Free Cash Flow (FCF) (3) |  |  |  |  |  |  |  |
Cash from operating activities, excluding acquisition costs paid | 888 |  | 826 |  | 62 |  | 7.5 | %
Capital expenditures | (594 | ) | (594 | ) | - |  | 0.0 | %
Dividends paid on preferred shares | (32 | ) | (26 | ) | (6 | ) | (23.1 | %)
Dividends paid by subsidiaries to non-controlling interest | - |  | (7 | ) | 7 |  | 100.0 | %
Bell Aliant dividends to BCE | - |  | 48 |  | (48 | ) | (100.0 | %)
FCF | 262 |  | 247 |  | 15 |  | 6.1 | %

Cash Flow Information - Historical Trend |  |  |  |  |  |  |  |  |  |  |  |  |  |
($ millions of Canadian dollars, except where otherwise indicated) (unaudited) | Q1 2014 |  |  | Total 2013 |  |  | Q4 2013 |  | Q3 2013 |  | Q2 2013 |  | Q1 2013 |
Free Cash Flow (FCF) |  |  |  |  |  |  |  |  |  |  |  |  |  |
Cash from operating activities, excluding acquisition costs paid | 888 |  |  | 5,521 |  |  | 1,649 |  | 1,479 |  | 1,567 |  | 826 |
Capital expenditures | (594 | ) |  | (3,001 | ) |  | (992 | ) | (742 | ) | (673 | ) | (594 | )
Dividends paid on preferred shares | (32 | ) |  | (127 | ) |  | (31 | ) | (38 | ) | (32 | ) | (26 | )
Dividends paid by subsidiaries to non-controlling interest | - |  |  | (13 | ) |  | - |  | - |  | (6 | ) | (7 | )
Bell Aliant dividends to BCE | - |  |  | 191 |  |  | 48 |  | 48 |  | 47 |  | 48 |
FCF | 262 |  |  | 2,571 |  |  | 674 |  | 747 |  | 903 |  | 247 |

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

BCE Supplementary Financial Information – First Quarter 2014 Page 10

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

| March 31 |  |  | December 31 |
($ millions of Canadian dollars, except where otherwise indicated) (unaudited) | 2014 |  |  | 2013 |
ASSETS |  |  |  |  |
Current assets |  |  |  |  |
Cash | 99 |  |  | 220 |
Cash equivalents | 621 |  |  | 115 |
Trade and other receivables | 2,861 |  |  | 3,043 |
Inventory | 380 |  |  | 383 |
Prepaid expenses | 503 |  |  | 415 |
Assets held for sale | 193 |  |  | 719 |
Other current assets | 193 |  |  | 175 |
Total current assets | 4,850 |  |  | 5,070 |
Non-current assets |  |  |  |  |
Property, plant and equipment | 20,671 |  |  | 20,743 |
Intangible assets | 9,526 |  |  | 9,552 |
Deferred tax assets | 199 |  |  | 165 |
Investments in associates and joint ventures | 789 |  |  | 775 |
Other non-current assets | 752 |  |  | 698 |
Goodwill | 8,376 |  |  | 8,381 |
Total non-current assets | 40,313 |  |  | 40,314 |
Total assets | 45,163 |  |  | 45,384 |
LIABILITIES |  |  |  |  |
Current liabilities |  |  |  |  |
Trade payables and other liabilities | 3,661 |  |  | 4,339 |
Interest payable | 145 |  |  | 147 |
Dividends payable | 555 |  |  | 466 |
Current tax liabilities | 191 |  |  | 367 |
Debt due within one year | 3,201 |  |  | 2,571 |
Total current liabilities | 7,753 |  |  | 7,890 |
Non-current liabilities |  |  |  |  |
Long-term debt | 16,010 |  |  | 16,341 |
Deferred tax liabilities | 1,217 |  |  | 1,318 |
Post-employment benefit obligation | 2,744 |  |  | 2,127 |
Other non-current liabilities | 1,458 |  |  | 1,458 |
Total non-current liabilities | 21,429 |  |  | 21,244 |
Total liabilities | 29,182 |  |  | 29,134 |
EQUITY |  |  |  |  |
Equity attributable to BCE shareholders |  |  |  |  |
Preferred shares | 3,395 |  |  | 3,395 |
Common shares | 13,688 |  |  | 13,629 |
Contributed surplus | 2,605 |  |  | 2,615 |
Accumulated other comprehensive income | 28 |  |  | 14 |
Deficit | (4,933 | ) |  | (4,642 | )
Total Equity attributable to BCE shareholders | 14,783 |  |  | 15,011 |
Non-controlling interest | 1,198 |  |  | 1,239 |
Total equity | 15,981 |  |  | 16,250 |
Total liabilities and equity | 45,163 |  |  | 45,384 |
Number of common shares outstanding | 777.3 |  |  | 775.9 |

BCE Supplementary Financial Information – First Quarter 2014 Page 11

BCE (1)
Consolidated Cash Flow Data (2)

($ millions of Canadian dollars, except where otherwise indicated) (unaudited) |  | Q1 2014 |  |  | Q1 2013 |  |  |  | $ change |
Net earnings |  | 714 |  |  | 672 |  |  |  | 42 |
Adjustments to reconcile net earnings to cash flows from operating activities |  |  |  |  |  |  |  |  |  |
Severance, acquisition and other costs |  | 38 |  |  | 33 |  |  |  | 5 |
Depreciation and amortization |  | 866 |  |  | 838 |  |  |  | 28 |
Post-employment benefit plans cost |  | 99 |  |  | 114 |  |  |  | (15 | )
Net interest expense |  | 234 |  |  | 220 |  |  |  | 14 |
Gains on investments |  | (12 | ) |  | (2 | ) |  |  | (10 | )
Income taxes |  | 231 |  |  | 241 |  |  |  | (10 | )
Contributions to post-employment benefit plans |  | (88 | ) |  | (98 | ) |  |  | 10 |
Payments under other post-employment benefit plans |  | (18 | ) |  | (18 | ) |  |  | - |
Severance and other costs paid |  | (68 | ) |  | (49 | ) |  |  | (19 | )
Acquisition costs paid |  | (14 | ) |  | (10 | ) |  |  | (4 | )
Interest paid |  | (229 | ) |  | (196 | ) |  |  | (33 | )
Income taxes paid (net of refunds) |  | (361 | ) |  | (148 | ) |  |  | (213 | )
Net change in operating assets and liabilities |  | (410 | ) |  | (557 | ) |  |  | 147 |
Cash flows from operating activities |  | 982 |  |  | 1,040 |  |  |  | (58 | )
Bell Aliant dividends paid to BCE |  | - |  |  | 48 |  |  |  | (48 | )
Capital expenditures |  | (729 | ) |  | (722 | ) |  |  | (7 | )
Cash dividends paid on preferred shares |  | (32 | ) |  | (26 | ) |  |  | (6 | )
Cash dividends paid by subsidiaries to non-controlling interest |  | (7 | ) |  | (73 | ) |  |  | 66 |
Acquisition costs paid |  | 14 |  |  | 10 |  |  |  | 4 |
Bell Aliant Free Cash Flow |  | 34 |  |  | (30 | ) |  |  | 64 |
Free Cash Flow (3) |  | 262 |  |  | 247 |  |  |  | 15 |
Bell Aliant free cash flow, excluding dividends paid |  | (34 | ) |  | (18 | ) |  |  | (16 | )
Business acquisitions |  | - |  |  | (5 | ) |  |  | 5 |
Acquisition costs paid |  | (14 | ) |  | (10 | ) |  |  | (4 | )
Business dispositions |  | 538 |  |  | - |  |  |  | 538 |
Increase in investments |  | (6 | ) |  | - |  |  |  | (6 | )
Decrease in investments |  | - |  |  | 2 |  |  |  | (2 | )
Spectrum payment |  | (113 | ) |  | - |  |  |  | (113 | )
Other investing activities |  | 1 |  |  | - |  |  |  | 1 |
Increase in notes payable and bank advances |  | 601 |  |  | 338 |  |  |  | 263 |
Reduction in securitized trade receivables |  | - |  |  | (14 | ) |  |  | 14 |
Issue of long-term debt |  | 33 |  |  | 1,007 |  |  |  | (974 | )
Repayment of long-term debt |  | (415 | ) |  | (289 | ) |  |  | (126 | )
Premiums on early redemption of debt |  | - |  |  | (17 | ) |  |  | 17 |
Cash dividends paid on common shares |  | (452 | ) |  | (440 | ) |  |  | (12 | )
Issue of common shares |  | 32 |  |  | 13 |  |  |  | 19 |
Issue of equity securities by subsidiaries to non-controlling interest |  | - |  |  | 230 |  |  |  | (230 | )
Other financing activities |  | (48 | ) |  | (18 | ) |  |  | (30 | )
|  | 123 |  |  | 779 |  |  |  | (656 | )
Net increase in cash and cash equivalents |  | 385 |  |  | 1,026 |  |  |  | (641 | )
Cash and cash equivalents at beginning of period |  | 335 |  |  | 129 |  |  |  | 206 |
Cash and cash equivalents at end of period |  | 720 |  |  | 1,155 |  |  |  | (435 | )
Other information |  |  |  |  |  |  |  |  |  |
Free cash flow per share (3) | $ | 0.34 |  | $ | 0.32 |  |  | $ | 0.02 |
Annualized cash flow yield (5) |  | 7.0 | % |  | 6.4 | % |  |  | 0.6 | pts

BCE Supplementary Financial Information – First Quarter 2014 Page 12

BCE
Consolidated Cash Flow Data - Historical Trend

($ millions of Canadian dollars, except where otherwise indicated) (unaudited) |  | Q1 14 |  |  |  | Total 2013 |  |  |  | Q4 13 |  |  | Q3 13 |  |  | Q2 13 |  |  | Q1 13 |
Net earnings |  | 714 |  |  |  | 2,388 |  |  |  | 593 |  |  | 452 |  |  | 671 |  |  | 672 |
Adjustments to reconcile net earnings to cash flows from operating activities |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Severance, acquisition and other costs |  | 38 |  |  |  | 406 |  |  |  | 48 |  |  | 297 |  |  | 28 |  |  | 33 |
Depreciation and amortization |  | 866 |  |  |  | 3,380 |  |  |  | 855 |  |  | 845 |  |  | 842 |  |  | 838 |
Post-employment benefit plans cost |  | 99 |  |  |  | 442 |  |  |  | 109 |  |  | 112 |  |  | 107 |  |  | 114 |
Net interest expense |  | 234 |  |  |  | 924 |  |  |  | 239 |  |  | 240 |  |  | 225 |  |  | 220 |
(Gains) losses on investments |  | (12 | ) |  |  | 7 |  |  |  | 12 |  |  | (2 | ) |  | (1 | ) |  | (2 | )
Income taxes |  | 231 |  |  |  | 828 |  |  |  | 226 |  |  | 165 |  |  | 196 |  |  | 241 |
Contributions to post-employment benefit plans |  | (88 | ) |  |  | (341 | ) |  |  | (83 | ) |  | (84 | ) |  | (76 | ) |  | (98 | )
Payments under other post-employment benefit plans |  | (18 | ) |  |  | (73 | ) |  |  | (18 | ) |  | (19 | ) |  | (18 | ) |  | (18 | )
Severance and other costs paid |  | (68 | ) |  |  | (203 | ) |  |  | (65 | ) |  | (44 | ) |  | (45 | ) |  | (49 | )
Acquisition costs paid |  | (14 | ) |  |  | (80 | ) |  |  | (30 | ) |  | (32 | ) |  | (8 | ) |  | (10 | )
Interest paid |  | (229 | ) |  |  | (879 | ) |  |  | (231 | ) |  | (246 | ) |  | (206 | ) |  | (196 | )
Income taxes paid (net of refunds) |  | (361 | ) |  |  | (470 | ) |  |  | (232 | ) |  | (53 | ) |  | (37 | ) |  | (148 | )
Net change in operating assets and liabilities |  | (410 | ) |  |  | 147 |  |  |  | 415 |  |  | 99 |  |  | 190 |  |  | (557 | )
Cash flows from operating activities |  | 982 |  |  |  | 6,476 |  |  |  | 1,838 |  |  | 1,730 |  |  | 1,868 |  |  | 1,040 |
Bell Aliant dividends paid to BCE |  | - |  |  |  | 191 |  |  |  | 48 |  |  | 48 |  |  | 47 |  |  | 48 |
Capital expenditures |  | (729 | ) |  |  | (3,571 | ) |  |  | (1,139 | ) |  | (880 | ) |  | (830 | ) |  | (722 | )
Cash dividends paid on preferred shares |  | (32 | ) |  |  | (127 | ) |  |  | (31 | ) |  | (38 | ) |  | (32 | ) |  | (26 | )
Cash dividends paid by subsidiaries to non-controlling interest |  | (7 | ) |  |  | (283 | ) |  |  | (68 | ) |  | (68 | ) |  | (74 | ) |  | (73 | )
Acquisition costs paid |  | 14 |  |  |  | 80 |  |  |  | 30 |  |  | 32 |  |  | 8 |  |  | 10 |
Bell Aliant Free Cash Flow |  | 34 |  |  |  | (195 | ) |  |  | (4 | ) |  | (77 | ) |  | (84 | ) |  | (30 | )
Free Cash Flow |  | 262 |  |  |  | 2,571 |  |  |  | 674 |  |  | 747 |  |  | 903 |  |  | 247 |
Bell Aliant free cash flow, excluding dividends paid |  | (34 | ) |  |  | 4 |  |  |  | (44 | ) |  | 29 |  |  | 37 |  |  | (18 | )
Business acquisitions |  | - |  |  |  | (2,850 | ) |  |  | (1 | ) |  | (2,844 | ) |  | - |  |  | (5 | )
Acquisition costs paid |  | (14 | ) |  |  | (80 | ) |  |  | (30 | ) |  | (32 | ) |  | (8 | ) |  | (10 | )
Business dispositions |  | 538 |  |  |  | 1 |  |  |  | - |  |  | - |  |  | 1 |  |  | - |
Increase in investments |  | (6 | ) |  |  | (3 | ) |  |  | (1 | ) |  | (1 | ) |  | (1 | ) |  | - |
Decrease in investments |  | - |  |  |  | 10 |  |  |  | 5 |  |  | - |  |  | 3 |  |  | 2 |
Spectrum payment |  | (113 | ) |  |  | - |  |  |  | - |  |  | - |  |  | - |  |  | - |
Other investing activities |  | 1 |  |  |  | 12 |  |  |  | - |  |  | (2 | ) |  | 14 |  |  | - |
Increase (decrease) in notes payable and bank advances |  | 601 |  |  |  | 272 |  |  |  | (240 | ) |  | 495 |  |  | (321 | ) |  | 338 |
Reduction in securitized trade receivables |  | - |  |  |  | (14 | ) |  |  | - |  |  | - |  |  | - |  |  | (14 | )
Issue of long-term debt |  | 33 |  |  |  | 4,438 |  |  |  | 15 |  |  | 2,008 |  |  | 1,408 |  |  | 1,007 |
Repayment of long-term debt |  | (415 | ) |  |  | (2,495 | ) |  |  | (178 | ) |  | (1,515 | ) |  | (513 | ) |  | (289 | )
Premiums on early redemption of debt |  | - |  |  |  | (55 | ) |  |  | - |  |  | (28 | ) |  | (10 | ) |  | (17 | )
Cash dividends paid on common shares |  | (452 | ) |  |  | (1,795 | ) |  |  | (452 | ) |  | (451 | ) |  | (452 | ) |  | (440 | )
Issue of common shares |  | 32 |  |  |  | 13 |  |  |  | - |  |  | - |  |  | - |  |  | 13 |
Issue of equity securities by subsidiaries to non-controlling interest |  | - |  |  |  | 230 |  |  |  | - |  |  | - |  |  | - |  |  | 230 |
Other financing activities |  | (48 | ) |  |  | (53 | ) |  |  | (16 | ) |  | (11 | ) |  | (8 | ) |  | (18 | )
|  | 123 |  |  |  | (2,365 | ) |  |  | (942 | ) |  | (2,352 | ) |  | 150 |  |  | 779 |
Net increase (decrease) in cash and cash equivalents |  | 385 |  |  |  | 206 |  |  |  | (268 | ) |  | (1,605 | ) |  | 1,053 |  |  | 1,026 |
Cash and cash equivalents at beginning of period |  | 335 |  |  |  | 129 |  |  |  | 603 |  |  | 2,208 |  |  | 1,155 |  |  | 129 |
Cash and cash equivalents at end of period |  | 720 |  |  |  | 335 |  |  |  | 335 |  |  | 603 |  |  | 2,208 |  |  | 1,155 |
Other information |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Free cash flow per share | $ | 0.34 |  |  | $ | 3.31 |  |  | $ | 0.86 |  | $ | 0.97 |  | $ | 1.16 |  | $ | 0.32 |
Annualized cash flow yield |  | 7.0 | % |  |  | 7.2 | % |  |  | 7.2 | % |  | 7.3 | % |  | 7.3 | % |  | 6.4 | %

BCE Supplementary Financial Information – First Quarter 2014 Page 13

Accompanying Notes

| We report our results of operations in four segments: Bell Wireless, Bell Wireline, 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.
(1) | Throughout this report, BCE means, as the context may require, either BCE Inc. or, collectively, BCE Inc., its subsidiaries, joint arrangements and associates; Bell means our Bell Wireless, Bell Wireline and Bell Media segments on an aggregate basis; and Bell Aliant means Bell Aliant Inc. and its subsidiaries and associates.
(2) | On July 5, 2013, BCE acquired 100% of the issued and outstanding shares of Astral Media Inc. (Astral) . Astral is a media company that operates specialty and pay TV channels, radio stations, digital media properties and out-of-home advertising platforms.
(3) | Non-GAAP Financial Measures
| EBITDA and EBITDA margin The terms EBITDA and EBITDA margin do not have any standardized meaning under International Financial Reporting Standards (IFRS). Therefore, they are unlikely to be comparable to similar measures presented by other issuers. We define EBITDA as operating revenues less operating costs (including post-employment benefit plans service cost). We define EBITDA margin as EBITDA divided by operating revenues. We use EBITDA and EBITDA margin to evaluate the performance of our businesses as they reflect 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. We believe that certain investors and analysts also use EBITDA and EBITDA margin to evaluate the performance of our businesses. EBITDA also is one component in the determination of short-term incentive compensation for all management employees. EBITDA and EBITDA margin have no directly comparable IFRS financial measure. Alternatively, EBITDA 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 issuers. 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 and we believe that certain investors and analysts use these measures, among other ones, 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 2014 Page 14

Accompanying Notes

| Free Cash Flow and Free Cash Flow per share The terms free cash flow and free cash flow per share do not have any standardized meaning under IFRS. Therefore, they are unlikely to be comparable to similar measures presented by other issuers. We define free cash flow as cash flows from operating activities, excluding acquisition costs paid and voluntary pension funding, plus dividends received from Bell Aliant, less capital expenditures, preferred share dividends, dividends paid by subsidiaries to non-controlling interest, and Bell Aliant free cash flow. We define free cash flow per share as follows: Free cash flow Average number of common shares outstanding We consider free cash flow and free cash flow per share to be important indicators of the financial strength and performance of our businesses because they show how much cash is available to pay dividends, 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. We believe that certain investors and analysts also use free cash flow and free cash flow per share to evaluate the financial strength and performance of our businesses. For free cash flow, the most comparable IFRS financial measure is cash flows from operating activities. Net debt The term net debt does not have any standardized meaning under IFRS. Therefore, it is unlikely to be comparable to similar measures presented by other issuers. We define net debt as debt due within one year plus long-term debt and 50% of preferred shares less cash and cash equivalents. We include 50% of outstanding preferred shares in our net debt as it is consistent with the treatment by certain credit rating agencies. We consider net debt to be an important indicator of the company’s financial leverage because it represents the amount of debt that is not covered by available cash and cash equivalents. We believe that certain investors and analysts use net debt to determine a company’s financial leverage. Net debt has no directly comparable IFRS financial measure, but rather is calculated using several asset and liability categories from the statements of financial position, as shown in this document.
(4) | Key Performance Indicators (KPIs) We use a number of KPIs to measure the success of our strategic imperatives. These KPIs are not accounting measures and may not be comparable to similar measures presented by other issuers. Capital Intensity is capital expenditures divided by operating revenues. Average revenue per user or subscriber (ARPU) represents the measurement of certain service revenues divided by the average subscriber base for the specified period.

BCE Supplementary Financial Information – First Quarter 2014 Page 15

Accompanying Notes

| Churn is the rate at which existing subscribers cancel their services, expressed as a percentage. Churn is calculated as the number of subscribers disconnected divided by the average subscriber base. It is a measure of monthly customer turnover. Cost of acquisition (COA) is also referred to as subscriber acquisition costs. COA represents the total cost associated with acquiring a customer and includes costs such as hardware discounts, marketing and distribution costs. This measure is expressed per gross activation during a specified period. Net debt to Adjusted EBITDA is Bell net debt divided by twelve-month trailing Bell Adjusted EBITDA. Net debt is debt due within one year, long-term debt and 50% of preferred shares less cash and cash equivalents. Adjusted EBITDA is Bell EBITDA including dividends from Bell Aliant to BCE. Adjusted EBITDA to net interest expense is twelve-month trailing Adjusted EBITDA divided by twelve-month trailing net interest expense. Adjusted EBITDA is Bell EBITDA including dividends from Bell Aliant to BCE. Net interest expense is Bell interest expense excluding interest on post-employment benefit obligations and including 50% of dividends on preferred shares.
(5) | 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 2014 Page 16