EX-99.2 3 supp_q215.htm SUPPLEMENTARY FINANCIAL INFORMATION - SECOND QUARTER 2015

Supplementary Financial Information

Exhibit 99.2

BCE ⁽¹⁾
Consolidated Operational Data ⁽²⁾

(In millions of Canadian dollars, except share amounts) (unaudited)		Q2 2015			Q2 2014				$ change		% change				YTD 2015			YTD 2014				$ change		% change
Operating revenues		5,326			5,220				106		2.0	%			10,566			10,319				247		2.4	%
Operating costs (A)		(3,061	)		(3,008	)			(53	)	(1.8	%)			(6,131	)		(6,011	)			(120	)	(2.0	%)
Post-employment benefit plans service cost		(68	)		(68	)			-		-				(144	)		(142	)			(2	)	(1.4	%)
Adjusted EBITDA (3)		2,197			2,144				53		2.5	%			4,291			4,166				125		3.0	%
Adjusted EBITDA margin (3)		41.3	%		41.1	%					0.2	pts			40.6	%		40.4	%					0.2	pts
Severance, acquisition and other costs		(24	)		(54	)			30		55.6	%			(248	)		(92	)			(156	)	n.m.
Depreciation		(720	)		(708	)			(12	)	(1.7	%)			(1,432	)		(1,407	)			(25	)	(1.8	%)
Amortization		(134	)		(171	)			37		21.6	%			(261	)		(338	)			77		22.8	%
Finance costs
Interest expense		(230	)		(229	)			(1	)	(0.4	%)			(456	)		(464	)			8		1.7	%
Interest on post-employment benefit obligations		(28	)		(26	)			(2	)	(7.7	%)			(55	)		(51	)			(4	)	(7.8	%)
Other income (expense)		43			(13	)			56		n.m.				23			74				(51	)	(68.9	%)
Income taxes		(290	)		(236	)			(54	)	(22.9	%)			(465	)		(467	)			2		0.4	%
Net earnings		814			707				107		15.1	%			1,397			1,421				(24	)	(1.7	%)
Net earnings attributable to:
Common shareholders		759			606				153		25.2	%			1,291			1,221				70		5.7	%
Preferred shareholders		39			33				6		18.2	%			77			66				11		16.7	%
Non-controlling interest		16			68				(52	)	(76.5	%)			29			134				(105	)	(78.4	%)
Net earnings		814			707				107		15.1	%			1,397			1,421				(24	)	(1.7	%)
Net earnings per common share - basic	$	0.90		$	0.78			$	0.12		15.4	%		$	1.53		$	1.57			$	(0.04	)	(2.5	%)
Net earnings per common share - diluted	$	0.90		$	0.78			$	0.12		15.4	%		$	1.53		$	1.57			$	(0.04	)	(2.5	%)
Dividends per common share	$	0.6500		$	0.6175			$	0.0325		5.3	%		$	1.3000		$	1.2350			$	0.065		5.3	%
Average number of common shares outstanding - basic (millions)		844.9			777.7										843.0			777.1
Average number of common shares outstanding - diluted (millions)		846.2			778.6										844.4			777.9
Number of common shares outstanding (millions)		848.6			778.1										848.6			778.1
Adjusted Net Earnings and EPS
Net earnings attributable to common shareholders		759			606				153		25.2	%			1,291			1,221				70		5.7	%
Severance, acquisition and other costs		16			38				(22	)	(57.9	%)			180			61				119		n.m.
Net gains on investments		(40	)		(4	)			(36	)	n.m.				(38	)		(16	)			(22	)	n.m.
Early debt redemption costs		-			-				-		-				7			-				7		n.m.
Adjusted net earnings (3)		735			640				95		14.8	%			1,440			1,266				174		13.7	%
Impact on net earnings per share	$	(0.03	)	$	0.04			$	(0.07	)	n.m.			$	0.18		$	0.06			$	0.12		n.m.
Adjusted EPS (3)	$	0.87		$	0.82			$	0.05		6.1	%		$	1.71		$	1.63			$	0.08		4.9	%

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

BCE Supplementary Financial Information - Second Quarter 2015 Page 2

BCE
Consolidated Operational Data - Historical Trend

(In millions of Canadian dollars, except share amounts) (unaudited)		YTD 2015				Q2 15			Q1 15				TOTAL 2014				Q4 14			Q3 14			Q2 14			Q1 14
Operating revenues		10,566				5,326			5,240				21,042				5,528			5,195			5,220			5,099
Operating costs (A)		(6,131	)			(3,061	)		(3,070	)			(12,463	)			(3,438	)		(3,014	)		(3,008	)		(3,003	)
Post-employment benefit plans service cost		(144	)			(68	)		(76	)			(276	)			(68	)		(66	)		(68	)		(74	)
Adjusted EBITDA		4,291				2,197			2,094				8,303				2,022			2,115			2,144			2,022
Adjusted EBITDA margin		40.6	%			41.3	%		40.0	%			39.5	%			36.6	%		40.7	%		41.1	%		39.7	%
Severance, acquisition and other costs		(248	)			(24	)		(224	)			(216	)			(58	)		(66	)		(54	)		(38	)
Depreciation		(1,432	)			(720	)		(712	)			(2,880	)			(734	)		(739	)		(708	)		(699	)
Amortization		(261	)			(134	)		(127	)			(572	)			(118	)		(116	)		(171	)		(167	)
Finance costs
Interest expense		(456	)			(230	)		(226	)			(929	)			(238	)		(227	)		(229	)		(235	)
Interest on post-employment benefit obligations		(55	)			(28	)		(27	)			(101	)			(25	)		(25	)		(26	)		(25	)
Other income (expense)		23				43			(20	)			42				(34	)		2			(13	)		87
Income taxes		(465	)			(290	)		(175	)			(929	)			(221	)		(241	)		(236	)		(231	)
Net earnings		1,397				814			583				2,718				594			703			707			714
Net earnings attributable to:
Common shareholders		1,291				759			532				2,363				542			600			606			615
Preferred shareholders		77				39			38				137				40			31			33			33
Non-controlling interest		29				16			13				218				12			72			68			66
Net earnings		1,397				814			583				2,718				594			703			707			714
Net earnings per common share - basic	$	1.53			$	0.90		$	0.63			$	2.98			$	0.64		$	0.77		$	0.78		$	0.79
Net earnings per common share - diluted	$	1.53			$	0.90		$	0.63			$	2.97			$	0.63		$	0.77		$	0.78		$	0.79
Dividends per common share	$	1.3000			$	0.6500		$	0.6500			$	2.4700			$	0.6175		$	0.6175		$	0.6175		$	0.6175
Average number of common shares outstanding - basic (millions)		843.0				844.9			841.0				793.7				837.7			782.1			777.7			776.5
Average number of common shares outstanding - diluted (millions)		844.4				846.2			842.6				794.6				838.9			783.0			778.6			777.2
Number of common shares outstanding (millions)		848.6				848.6			841.9				840.3				840.3			828.3			778.1			777.3
Adjusted Net Earnings and EPS
Net earnings attributable to common shareholders		1,291				759			532				2,363				542			600			606			615
Severance, acquisition and other costs		180				16			164				148				42			45			38			23
Net (gains) losses on investments		(38	)			(40	)		2				(8	)			8			-			(4	)		(12	)
Early debt redemption costs		7				-			7				21				18			3			-			-
Adjusted net earnings		1,440				735			705				2,524				610			648			640			626
Impact on net earnings per share	$	0.18			$	(0.03	)	$	0.21			$	0.20			$	0.08		$	0.06		$	0.04		$	0.02
Adjusted EPS	$	1.71			$	0.87		$	0.84			$	3.18			$	0.72		$	0.83		$	0.82		$	0.81

(A) Excludes post-employment benefit plans service cost

BCE Supplementary Financial Information - Second Quarter 2015 Page 3

BCE ⁽¹⁾
Segmented Data ⁽²⁾

(In millions of Canadian dollars, except where otherwise indicated) (unaudited)	Q2 2015		Q2 2014			$ change		% change			YTD 2015		YTD 2014			$ change		% change
Revenues
Bell Wireless	1,697		1,543			154		10.0	%		3,334		3,035			299		9.9	%
Bell Wireline	3,042		3,049			(7	)	(0.2	%)		6,069		6,068			1		-
Bell Media	740		761			(21	)	(2.8	%)		1,466		1,483			(17	)	(1.1	%)
Inter-segment eliminations	(153	)	(133	)		(20	)	(15.0	%)		(303	)	(267	)		(36	)	(13.5	%)
Total	5,326		5,220			106		2.0	%		10,566		10,319			247		2.4	%
Operating costs
Bell Wireless	(980	)	(862	)		(118	)	(13.7	%)		(1,905	)	(1,711	)		(194	)	(11.3	%)
Bell Wireline	(1,777	)	(1,796	)		19		1.1	%		(3,563	)	(3,586	)		23		0.6	%
Bell Media	(525	)	(551	)		26		4.7	%		(1,110	)	(1,123	)		13		1.2	%
Inter-segment eliminations	153		133			20		15.0	%		303		267			36		13.5	%
Total	(3,129	)	(3,076	)		(53	)	(1.7	%)		(6,275	)	(6,153	)		(122	)	(2.0	%)
Adjusted EBITDA
Bell Wireless	717		681			36		5.3	%		1,429		1,324			105		7.9	%
Margin	42.3	%	44.1	%				(1.8	) pts		42.9	%	43.6	%				(0.7	) pts
Bell Wireline	1,265		1,253			12		1.0	%		2,506		2,482			24		1.0	%
Margin	41.6	%	41.1	%				0.5	pts		41.3	%	40.9	%				0.4	pts
Bell Media	215		210			5		2.4	%		356		360			(4	)	(1.1	%)
Margin	29.1	%	27.6	%				1.5	pts		24.3	%	24.3	%				0.0	pts
Total	2,197		2,144			53		2.5	%		4,291		4,166			125		3.0	%
Margin	41.3	%	41.1	%				0.2	pts		40.6	%	40.4	%				0.2	pts
Capital expenditures
Bell Wireless	188		168			(20	)	(11.9	%)		339		287			(52	)	(18.1	%)
Capital Intensity (4)	11.1	%	10.9	%				(0.2	) pts		10.2	%	9.5	%				(0.7	) pts
Bell Wireline	696		737			41		5.6	%		1,352		1,333			(19	)	(1.4	%)
Capital Intensity	22.9	%	24.2	%				1.3	pts		22.3	%	22.0	%				(0.3	) pts
Bell Media	30		32			2		6.3	%		50		46			(4	)	(8.7	%)
Capital Intensity	4.1	%	4.2	%				0.1	pts		3.4	%	3.1	%				(0.3	) pts
Total	914		937			23		2.5	%		1,741		1,666			(75	)	(4.5	%)
Capital Intensity	17.2	%	18.0	%				0.8	pts		16.5	%	16.1	%				(0.4	) pts

BCE Supplementary Financial Information - Second Quarter 2015 Page 4

BCE
Segmented Data - Historical Trend

(In millions of Canadian dollars, except where otherwise indicated) (unaudited)	YTD 2015			Q2 15		Q1 15			TOTAL 2014		Q4 14		Q3 14		Q2 14		Q1 14
Revenues
Bell Wireless	3,334			1,697		1,637			6,327		1,671		1,621		1,543		1,492
Bell Wireline	6,069			3,042		3,027			12,324		3,210		3,046		3,049		3,019
Bell Media	1,466			740		726			2,937		789		665		761		722
Inter-segment eliminations	(303	)		(153	)	(150	)		(546	)	(142	)	(137	)	(133	)	(134	)
Total	10,566			5,326		5,240			21,042		5,528		5,195		5,220		5,099
Operating costs
Bell Wireless	(1,905	)		(980	)	(925	)		(3,703	)	(1,071	)	(921	)	(862	)	(849	)
Bell Wireline	(3,563	)		(1,777	)	(1,786	)		(7,379	)	(1,980	)	(1,813	)	(1,796	)	(1,790	)
Bell Media	(1,110	)		(525	)	(585	)		(2,203	)	(597	)	(483	)	(551	)	(572	)
Inter-segment eliminations	303			153		150			546		142		137		133		134
Total	(6,275	)		(3,129	)	(3,146	)		(12,739	)	(3,506	)	(3,080	)	(3,076	)	(3,077	)
Adjusted EBITDA
Bell Wireless	1,429			717		712			2,624		600		700		681		643
Margin	42.9	%		42.3	%	43.5	%		41.5	%	35.9	%	43.2	%	44.1	%	43.1	%
Bell Wireline	2,506			1,265		1,241			4,945		1,230		1,233		1,253		1,229
Margin	41.3	%		41.6	%	41.0	%		40.1	%	38.3	%	40.5	%	41.1	%	40.7	%
Bell Media	356			215		141			734		192		182		210		150
Margin	24.3	%		29.1	%	19.4	%		25.0	%	24.3	%	27.4	%	27.6	%	20.8	%
Total	4,291			2,197		2,094			8,303		2,022		2,115		2,144		2,022
Margin	40.6	%		41.3	%	40.0	%		39.5	%	36.6	%	40.7	%	41.1	%	39.7	%
Capital expenditures
Bell Wireless	339			188		151			687		218		182		168		119
Capital Intensity	10.2	%		11.1	%	9.2	%		10.9	%	13.0	%	11.2	%	10.9	%	8.0	%
Bell Wireline	1,352			696		656			2,893		804		756		737		596
Capital Intensity	22.3	%		22.9	%	21.7	%		23.5	%	25.0	%	24.8	%	24.2	%	19.7	%
Bell Media	50			30		20			137		54		37		32		14
Capital Intensity	3.4	%		4.1	%	2.8	%		4.7	%	6.8	%	5.6	%	4.2	%	1.9	%
Total	1,741			914		827			3,717		1,076		975		937		729
Capital Intensity	16.5	%		17.2	%	15.8	%		17.7	%	19.5	%	18.8	%	18.0	%	14.3	%

BCE Supplementary Financial Information - Second Quarter 2015 Page 5

Bell Wireless ^{(1) (2)}

(In millions of Canadian dollars, except where otherwise indicated) (unaudited)	Q2 2015		Q2 2014			% change			YTD 2015		YTD 2014			% change
Bell Wireless
Revenues
Service	1,539		1,429			7.7	%		3,039		2,817			7.9	%
Product	149		105			41.9	%		276		199			38.7	%
Total external Bell Wireless revenues	1,688		1,534			10.0	%		3,315		3,016			9.9	%
Inter-segment	9		9			-			19		19			-
Total Bell Wireless operating revenues	1,697		1,543			10.0	%		3,334		3,035			9.9	%
Operating costs	(980	)	(862	)		(13.7	%)		(1,905	)	(1,711	)		(11.3	%)
Adjusted EBITDA	717		681			5.3	%		1,429		1,324			7.9	%
Adjusted EBITDA margin (Total revenues)	42.3	%	44.1	%		(1.8	) pts		42.9	%	43.6	%		(0.7	) pts
Adjusted EBITDA margin (Service revenues)	46.6	%	47.7	%		(1.1	) pts		47.0	%	47.0	%		0.0	pts
Capital expenditures	188		168			(11.9	%)		339		287			(18.1	%)
Capital intensity	11.1	%	10.9	%		(0.2	) pts		10.2	%	9.5	%		(0.7	) pts
Wireless gross activations	384,973		391,382			(1.6	%)		726,333		749,706			(3.1	%)
Postpaid	317,809		297,374			6.9	%		596,793		576,901			3.4	%
Wireless net activations	22,110		42,898			(48.5	%)		6,196		26,462			(76.6	%)
Postpaid	61,033		67,951			(10.2	%)		96,406		102,055			(5.5	%)
Wireless subscribers end of period (EOP)	8,124,824		7,951,494			2.2	%		8,124,824		7,951,494			2.2	%
Postpaid	7,206,453		6,900,148			4.4	%		7,206,453		6,900,148			4.4	%
Average revenue per user (4) (ARPU)($/month)	62.48		59.35			5.3	%		61.66		58.55			5.3	%
Churn (%) (4)(average per month)	1.49	%	1.47	%		(0.02	) pts		1.48	%	1.52	%		0.04	pts
Prepaid	3.48	%	3.49	%		0.01	pts		3.54	%	3.59	%		0.05	pts
Postpaid	1.23	%	1.15	%		(0.08	) pts		1.21	%	1.20	%		(0.01	) pts
Cost of acquisition (COA) (4) ($/subscriber)	434		403			(7.7	%)		442		420			(5.2	%)

BCE Supplementary Financial Information - Second Quarter 2015 Page 6

Bell Wireless - Historical Trend

(In millions of Canadian dollars, except where otherwise indicated) (unaudited)	YTD 2015			Q2 15		Q1 15			TOTAL 2014			Q4 14		Q3 14		Q2 14		Q1 14
Bell Wireless
Revenues
Service	3,039			1,539		1,500			5,806			1,494		1,495		1,429		1,388
Product	276			149		127			483			167		117		105		94
Total external Bell Wireless revenues	3,315			1,688		1,627			6,289			1,661		1,612		1,534		1,482
Inter-segment	19			9		10			38			10		9		9		10
Total Bell Wireless operating revenues	3,334			1,697		1,637			6,327			1,671		1,621		1,543		1,492
Operating costs	(1,905	)		(980	)	(925	)		(3,703	)		(1,071	)	(921	)	(862	)	(849	)
Adjusted EBITDA	1,429			717		712			2,624			600		700		681		643
Adjusted EBITDA margin (Total revenues)	42.9	%		42.3	%	43.5	%		41.5	%		35.9	%	43.2	%	44.1	%	43.1	%
Adjusted EBITDA margin (Service revenues)	47.0	%		46.6	%	47.5	%		45.2	%		40.2	%	46.8	%	47.7	%	46.3	%
Capital expenditures	339			188		151			687			218		182		168		119
Capital intensity	10.2	%		11.1	%	9.2	%		10.9	%		13.0	%	11.2	%	10.9	%	8.0	%
Wireless gross activations	726,333			384,973		341,360			1,643,451			462,285		431,460		391,382		358,324
Postpaid	596,793			317,809		278,984			1,291,207			382,455		331,851		297,374		279,527
Wireless net activations	6,196			22,110		(15,914	)		193,596			83,498		83,636		42,898		(16,436	)
Postpaid	96,406			61,033		35,373			311,954			118,120		91,779		67,951		34,104
Wireless subscribers EOP	8,124,824			8,124,824		8,102,714			8,118,628			8,118,628		8,035,130		7,951,494		7,908,596
Postpaid	7,206,453			7,206,453		7,145,420			7,110,047			7,110,047		6,991,927		6,900,148		6,832,197
ARPU ($/month)	61.66			62.48		60.83			59.92			60.97		61.59		59.35		57.75
Churn (%)(average per month)	1.48	%		1.49	%	1.47	%		1.52	%		1.57	%	1.45	%	1.47	%	1.58	%
Prepaid	3.54	%		3.48	%	3.60	%		3.44	%		3.43	%	3.14	%	3.49	%	3.68	%
Postpaid	1.21	%		1.23	%	1.18	%		1.22	%		1.29	%	1.20	%	1.15	%	1.24	%
COA ($/subscriber)	442			434		452			441			495		420		403		439

BCE Supplementary Financial Information - Second Quarter 2015 Page 7

Bell Wireline ^{(1) (2)}

(In millions of Canadian dollars, except where otherwise indicated) (unaudited)	Q2 2015		Q2 2014			% change			YTD 2015		YTD 2014			% change
Bell Wireline
Data	1,774		1,725			2.8	%		3,531		3,423			3.2	%
Local & access	827		860			(3.8	%)		1,651		1,727			(4.4	%)
Long distance	207		233			(11.2	%)		420		459			(8.5	%)
Equipment & other	174		179			(2.8	%)		347		357			(2.8	%)
Total external revenues	2,982		2,997			(0.5	%)		5,949		5,966			(0.3	%)
Inter-segment revenues	60		52			15.4	%		120		102			17.6	%
Total Bell Wireline operating revenues	3,042		3,049			(0.2	%)		6,069		6,068			-
Operating costs	(1,777	)	(1,796	)		1.1	%		(3,563	)	(3,586	)		0.6	%
Adjusted EBITDA	1,265		1,253			1.0	%		2,506		2,482			1.0	%
Adjusted EBITDA Margin	41.6	%	41.1	%		0.5	pts		41.3	%	40.9	%		0.4	pts
Capital expenditures	696		737			5.6	%		1,352		1,333			(1.4	%)
Capital intensity	22.9	%	24.2	%		1.3	pts		22.3	%	22.0	%		(0.3	) pts
High-speed Internet
High-speed Internet net activations	18,606		17,544			6.1	%		58,256		44,126			32.0	%
High-speed Internet subscribers EOP (A) (B)	3,316,351		3,180,762			4.3	%		3,316,351		3,180,762			4.3	%
TV
Net subscriber activations	16,690		33,369			(50.0	%)		43,680		73,592			(40.6	%)
Internet Protocol Television (IPTV)	50,466		59,132			(14.7	%)		111,329		125,510			(11.3	%)
Total subscribers EOP (A) (B)	2,674,796		2,562,840			4.4	%		2,674,796		2,562,840			4.4	%
IPTV (A) (B)	1,040,791		783,023			32.9	%		1,040,791		783,023			32.9	%
Local
Network Access Services (NAS)
Residential (A) (B)	3,670,167		3,943,622			(6.9	%)		3,670,167		3,943,622			(6.9	%)
Business	3,233,485		3,388,287			(4.6	%)		3,233,485		3,388,287			(4.6	%)
Total (A) (B)	6,903,652		7,331,909			(5.8	%)		6,903,652		7,331,909			(5.8	%)
NAS net losses
Residential	(75,819	)	(88,060	)		13.9	%		(141,689	)	(177,715	)		20.3	%
Business	(37,690	)	(42,860	)		12.1	%		(81,759	)	(85,945	)		4.9	%
Total	(113,509	)	(130,920	)		13.3	%		(223,448	)	(263,660	)		15.3	%

(A)	Our Q1 2015 Internet, IPTV, total TV, and NAS subscriber base included a beginning of period adjustment to reduce the number of subscribers by 7,505, 2,236, 7,702, and 4,409, respectively, for deactivations as a result of the CRTC’s decision to eliminate the 30-day notice period required to cancel services.
(B)	Subsequent to a review of our subscriber metrics, our Q1 2015 beginning of period Internet, IPTV and total TV subscriber base was reduced by 31,426, 1,849 and 3,790, respectively, while our NAS base was increased by 657 subscribers. These adjustments primarily consisted of older balances.

BCE Supplementary Financial Information - Second Quarter 2015 Page 8

Bell Wireline - Historical Trend

(In millions of Canadian dollars, except where otherwise indicated) (unaudited)	YTD 2015			Q2 15		Q1 15			TOTAL 2014		Q4 14		Q3 14		Q2 14		Q1 14
Bell Wireline
Data	3,531			1,774		1,757			6,978		1,833		1,722		1,725		1,698
Local & access	1,651			827		824			3,420		838		855		860		867
Long distance	420			207		213			922		234		229		233		226
Equipment & other	347			174		173			791		248		186		179		178
Total external revenues	5,949			2,982		2,967			12,111		3,153		2,992		2,997		2,969
Inter-segment revenues	120			60		60			213		57		54		52		50
Total Bell Wireline operating revenues	6,069			3,042		3,027			12,324		3,210		3,046		3,049		3,019
Operating costs	(3,563	)		(1,777	)	(1,786	)		(7,379	)	(1,980	)	(1,813	)	(1,796	)	(1,790	)
Adjusted EBITDA	2,506			1,265		1,241			4,945		1,230		1,233		1,253		1,229
Adjusted EBITDA Margin	41.3	%		41.6	%	41.0	%		40.1	%	38.3	%	40.5	%	41.1	%	40.7	%
Capital expenditures	1,352			696		656			2,893		804		756		737		596
Capital intensity	22.3	%		22.9	%	21.7	%		23.5	%	25.0	%	24.8	%	24.2	%	19.7	%
High-speed Internet
High-speed Internet net activations	58,256			18,606		39,650			160,390		52,010		64,254		17,544		26,582
High-speed Internet subscribers EOP (A) (B)	3,316,351			3,316,351		3,297,745			3,297,026		3,297,026		3,245,016		3,180,762		3,163,218
TV
Net subscriber activations	43,680			16,690		26,990			153,360		42,190		37,578		33,369		40,223
IPTV	111,329			50,466		60,863			276,034		76,074		74,450		59,132		66,378
Total subscribers EOP (A) (B)	2,674,796			2,674,796		2,658,106			2,642,608		2,642,608		2,600,418		2,562,840		2,529,471
IPTV (A) (B)	1,040,791			1,040,791		990,325			933,547		933,547		857,473		783,023		723,891
Local
NAS
Residential (A) (B)	3,670,167			3,670,167		3,745,986			3,815,608		3,815,608		3,872,840		3,943,622		4,031,682
Business	3,233,485			3,233,485		3,271,175			3,315,244		3,315,244		3,351,017		3,388,287		3,431,147
Total (A) (B)	6,903,652			6,903,652		7,017,161			7,130,852		7,130,852		7,223,857		7,331,909		7,462,829
NAS net losses
Residential	(141,689	)		(75,819	)	(65,870	)		(305,729	)	(57,232	)	(70,782	)	(88,060	)	(89,655	)
Business	(81,759	)		(37,690	)	(44,069	)		(158,988	)	(35,773	)	(37,270	)	(42,860	)	(43,085	)
Total	(223,448	)		(113,509	)	(109,939	)		(464,717	)	(93,005	)	(108,052	)	(130,920	)	(132,740	)

(A)	Our Q1 2015 Internet, IPTV, total TV, and NAS subscriber base included a beginning of period adjustment to reduce the number of subscribers by 7,505, 2,236, 7,702, and 4,409, respectively, for deactivations as a result of the CRTC’s decision to eliminate the 30-day notice period required to cancel services.
(B)	Subsequent to a review of our subscriber metrics, our Q1 2015 beginning of period Internet, IPTV and total TV subscriber base was reduced by 31,426, 1,849 and 3,790, respectively, while our NAS base was increased by 657 subscribers. These adjustments primarily consisted of older balances.

BCE Supplementary Financial Information - Second Quarter 2015 Page 9

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

BCE - Net debt and preferred shares
(In millions of Canadian dollars, except where otherwise indicated) (unaudited)
	June 30		March 31		December 31
	2015		2015		2014
Debt due within one year	5,058		4,712		3,743
Long-term debt	15,443		16,612		16,355
Preferred shares - BCE (A)	2,002		2,002		2,002
Cash and cash equivalents	(169	)	(1,125	)	(566	)
Net Debt (3)	22,334		22,201		21,534
Net Debt / Adjusted EBITDA (4)	2.65		2.65		2.59
Adjusted EBITDA /Net interest expense, excluding interest on post-employment benefit obligations and including 50% of preferred dividends (4)	8.53		8.52		8.38

Bell Media Inc. - Proportionate Information
(In millions of Canadian dollars, except where otherwise indicated) (unaudited)	YTD 2015		Q2 2015		Q1 2015			Total 2014		Q4 2014		Q3 2014		Q2 2014		Q1 2014
Proportionate Net Debt	-		-		-			-		-		-		14		30
Proportionate Adjusted EBITDA	312		191		121			657		181		158		189		129

Cash Flow Information
(In millions of Canadian dollars, except where otherwise indicated) (unaudited)	Q2 2015		Q2 2014		$ change		% change			YTD 2015		YTD 2014		$ change		% change
Free Cash Flow (FCF) (3)
Cash from operating activities, excluding acquisition costs paid	1,889		1,589		300		18.9	%		2,986		2,477		509		20.5	%
Capital expenditures	(914	)	(791	)	(123	)	(15.5	%)		(1,741	)	(1,385	)	(356	)	(25.7	%)
Dividends paid on preferred shares	(37	)	(31	)	(6	)	(19.4	%)		(76	)	(63	)	(13	)	(20.6	%)
Dividends paid by subsidiaries to non-controlling interest	(7	)	-		(7	)	n.m.			(7	)	-		(7	)	n.m.
Bell Aliant dividends paid to BCE	-		48		(48	)	(100.0	%)		-		48		(48	)	(100.0	%)
FCF	931		815		116		14.2	%		1,162		1,077		85		7.9	%

Cash Flow Information - Historical Trend
(In millions of Canadian dollars, except where otherwise indicated) (unaudited)	YTD 2015		Q2 2015		Q1 2015			Total 2014		Q4 2014		Q3 2014		Q2 2014		Q1 2014
FCF
Cash from operating activities, excluding acquisition costs paid	2,986		1,889		1,097			5,680		1,559		1,644		1,589		888
Capital expenditures	(1,741	)	(914	)	(827	)		(3,245	)	(1,035	)	(825	)	(791	)	(594	)
Dividends paid on preferred shares	(76	)	(37	)	(39	)		(134	)	(40	)	(31	)	(31	)	(32	)
Dividends paid by subsidiaries to non-controlling interest	(7	)	(7	)	-			(2	)	(1	)	(1	)	-		-
Voluntary defined benefit pension plan contribution	-		-		-			350		350		-		-		-
Bell Aliant dividends paid to BCE	-		-		-			95		-		47		48		-
FCF	1,162		931		231			2,744		833		834		815		262

(A)	Net debt includes 50% of preferred shares
n.m. : not meaningful

BCE Supplementary Financial Information - Second Quarter 2015 Page 10

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

(In millions of Canadian dollars, except where otherwise indicated) (unaudited)		June 30 2015			March 31 2015			December 31 2014
ASSETS
Current assets
Cash		131			127			142
Cash equivalents		38			998			424
Trade and other receivables		2,758			2,781			3,069
Inventory		405			403			333
Prepaid expenses		528			522			379
Other current assets		232			249			201
Total current assets		4,092			5,080			4,548
Non-current assets
Property, plant and equipment		21,513			21,347			21,327
Intangible assets		10,886			10,332			10,224
Deferred tax assets		131			162			162
Investments in associates and joint ventures		1,088			790			776
Other non-current assets		833			989			875
Goodwill		8,376			8,376			8,385
Total non-current assets		42,827			41,996			41,749
Total assets		46,919			47,076			46,297
LIABILITIES
Current liabilities
Trade payables and other liabilities		4,053			4,007			4,398
Interest payable		141			143			145
Dividends payable		565			561			534
Current tax liabilities		157			74			269
Debt due within one year		5,058			4,712			3,743
Total current liabilities		9,974			9,497			9,089
Non-current liabilities
Long-term debt		15,443			16,612			16,355
Deferred tax liabilities		1,559			1,352			1,321
Post-employment benefit obligation		2,101			2,803			2,772
Other non-current liabilities		1,462			1,493			1,521
Total non-current liabilities		20,565			22,260			21,969
Total liabilities		30,539			31,757			31,058
EQUITY
Equity attributable to BCE shareholders
Preferred shares		4,004			4,004			4,004
Common shares		17,142			16,790			16,717
Contributed surplus		1,137			1,121			1,141
Accumulated other comprehensive income		87			124			97
Deficit		(6,306	)		(7,027	)		(7,013	)
Total Equity attributable to BCE shareholders		16,064			15,012			14,946
Non-controlling interest		316			307			293
Total equity		16,380			15,319			15,239
Total liabilities and equity		46,919			47,076			46,297
Number of common shares outstanding		848.6			841.9			840.3

BCE Supplementary Financial Information - Second Quarter 2015 Page 11

BCE ⁽¹⁾
Consolidated Cash Flow Data ⁽²⁾

(In millions of Canadian dollars, except where otherwise indicated) (unaudited)		Q2 2015			Q2 2014				$ change				YTD 2015			YTD 2014				$ change
Net earnings		814			707				107				1,397			1,421				(24	)
Adjustments to reconcile net earnings to cash flows from operating activities
Severance, acquisition and other costs		24			54				(30	)			248			92				156
Depreciation and amortization		854			879				(25	)			1,693			1,745				(52	)
Post-employment benefit plans cost		96			94				2				199			193				6
Net interest expense		229			226				3				452			460				(8	)
(Gains) Losses on investments		(94	)		(4	)			(90	)			(92	)		(16	)			(76	)
Income taxes		290			236				54				465			467				(2	)
Contributions to post-employment benefit plans		(92	)		(85	)			(7	)			(173	)		(173	)			-
Payments under other post-employment benefit plans		(18	)		(18	)			-				(38	)		(36	)			(2	)
Severance and other costs paid		(52	)		(38	)			(14	)			(101	)		(106	)			5
Acquisition costs paid		(48	)		(16	)			(32	)			(100	)		(30	)			(70	)
Interest paid		(230	)		(231	)			1				(457	)		(460	)			3
Income taxes paid (net of refunds)		(119	)		(110	)			(9	)			(452	)		(471	)			19
Net change in operating assets and liabilities		187			156				31				(155	)		(254	)			99
Cash flows from operating activities		1,841			1,850				(9	)			2,886			2,832				54
Bell Aliant dividends paid to BCE		-			48				(48	)			-			48				(48	)
Capital expenditures		(914	)		(937	)			23				(1,741	)		(1,666	)			(75	)
Cash dividends paid on preferred shares		(37	)		(31	)			(6	)			(76	)		(63	)			(13	)
Cash dividends paid by subsidiaries to non-controlling interest		(7	)		(68	)			61				(7	)		(75	)			68
Acquisition costs paid		48			16				32				100			30				70
Bell Aliant Free Cash Flow		-			(63	)			63				-			(29	)			29
Free Cash Flow		931			815				116				1,162			1,077				85
Bell Aliant free cash flow, excluding dividends paid		-			15				(15	)			-			(19	)			19
Business acquisitions		(284	)		-				(284	)			(284	)		-				(284	)
Acquisition costs paid		(48	)		(16	)			(32	)			(100	)		(30	)			(70	)
Business dispositions		407			-				407				407			538				(131	)
Acquisition of spectrum licences		(429	)		(453	)			24				(529	)		(566	)			37
Other investing activities		(7	)		2				(9	)			(2	)		(3	)			1
(Decrease) Increase in notes payable and bank advances		(574	)		(443	)			(131	)			117			158				(41	)
Increase in securitized trade receivables		315			-				315				315			-				315
Issue of long-term debt		-			150				(150	)			502			183				319
Repayment of long-term debt		(723	)		(136	)			(587	)			(869	)		(551	)			(318	)
Cash dividends paid on common shares		(547	)		(480	)			(67	)			(1,066	)		(932	)			(134	)
Issue of common shares		19			9				10				57			41				16
Other financing activities		(16	)		(33	)			17				(107	)		(81	)			(26	)
		(1,887	)		(1,385	)			(502	)			(1,559	)		(1,262	)			(297	)
Net (decrease) increase in cash and cash equivalents		(956	)		(570	)			(386	)			(397	)		(185	)			(212	)
Cash and cash equivalents at beginning of period		1,125			720				405				566			335				231
Cash and cash equivalents at end of period		169			150				19				169			150				19
Other information
Free cash flow per share (3)	$	1.11		$	1.05			$	0.06			$	1.38		$	1.39			$	(0.01	)
Annualized cash flow yield (5)		6.3	%		6.6	%			(0.3	) pts			6.3	%		6.6	%			(0.3	) pts

BCE Supplementary Financial Information - Second Quarter 2015 Page 12

BCE
Consolidated Cash Flow Data - Historical Trend

(In millions of Canadian dollars, except where otherwise indicated) (unaudited)		YTD 2015				Q2 15			Q1 15				TOTAL 2014				Q4 14			Q3 14			Q2 14			Q1 14
Net earnings		1,397				814			583				2,718				594			703			707			714
Adjustments to reconcile net earnings to cash flows from operating activities
Severance, acquisition and other costs		248				24			224				216				58			66			54			38
Depreciation and amortization		1,693				854			839				3,452				852			855			879			866
Post-employment benefit plans cost		199				96			103				377				93			91			94			99
Net interest expense		452				229			223				921				236			225			226			234
(Gains) losses on investments		(92	)			(94	)		2				(10	)			6			-			(4	)		(12	)
Income taxes		465				290			175				929				221			241			236			231
Contributions to post-employment benefit plans		(173	)			(92	)		(81	)			(683	)			(428	)		(82	)		(85	)		(88	)
Payments under other post-employment benefit plans		(38	)			(18	)		(20	)			(73	)			(19	)		(18	)		(18	)		(18	)
Severance and other costs paid		(101	)			(52	)		(49	)			(190	)			(44	)		(40	)		(38	)		(68	)
Acquisition costs paid		(100	)			(48	)		(52	)			(131	)			(68	)		(33	)		(16	)		(14	)
Interest paid		(457	)			(230	)		(227	)			(907	)			(233	)		(214	)		(231	)		(229	)
Income taxes paid (net of refunds)		(452	)			(119	)		(333	)			(743	)			(180	)		(92	)		(110	)		(361	)
Net change in operating assets and liabilities		(155	)			187			(342	)			365				439			180			156			(410	)
Cash flows from operating activities		2,886				1,841			1,045				6,241				1,527			1,882			1,850			982
Bell Aliant dividends paid to BCE		-				-			-				95				-			47			48			-
Capital expenditures		(1,741	)			(914	)		(827	)			(3,717	)			(1,076	)		(975	)		(937	)		(729	)
Cash dividends paid on preferred shares		(76	)			(37	)		(39	)			(134	)			(40	)		(31	)		(31	)		(32	)
Cash dividends paid by subsidiaries to non-controlling interest		(7	)			(7	)		-				(145	)			(1	)		(69	)		(68	)		(7	)
Acquisition costs paid		100				48			52				131				68			33			16			14
Voluntary defined benefit pension plan contribution		-				-			-				350				350			-			-			-
Bell Aliant Free Cash Flow		-				-			-				(77	)			5			(53	)		(63	)		34
Free Cash Flow		1,162				931			231				2,744				833			834			815			262
Bell Aliant free cash flow, excluding dividends paid		-				-			-				(18	)			(5	)		6			15			(34	)
Business acquisitions		(284	)			(284	)		-				(18	)			(8	)		(10	)		-			-
Acquisition costs paid		(100	)			(48	)		(52	)			(131	)			(68	)		(33	)		(16	)		(14	)
Voluntary defined benefit pension plan contribution		-				-			-				(350	)			(350	)		-			-			-
Business dispositions		407				407			-				720				(4	)		186			-			538
Acquisition of spectrum licences		(529	)			(429	)		(100	)			(566	)			-			-			(453	)		(113	)
Other investing activities		(2	)			(7	)		5				11				13			1			2			(5	)
Increase (decrease) in notes payable and bank advances		117				(574	)		691				469				(132	)		443			(443	)		601
Increase in securitized trade receivables		315				315			-				-				-			-			-			-
Issue of long-term debt		502				-			502				1,428				2			1,243			150			33
Repayment of long-term debt		(869	)			(723	)		(146	)			(1,113	)			(445	)		(117	)		(136	)		(415	)
Early debt redemption costs		-				-			-				(4	)			(4	)		-			-			-
Cash dividends paid on common shares		(1,066	)			(547	)		(519	)			(1,893	)			(481	)		(480	)		(480	)		(452	)
Privatization of Bell Aliant		-				-			-				(989	)			(185	)		(804	)		-			-
Issue of common shares		57				19			38				49				6			2			9			32
Other financing activities		(107	)			(16	)		(91	)			(108	)			(12	)		(15	)		(33	)		(48	)
		(1,559	)			(1,887	)		328				(2,513	)			(1,673	)		422			(1,385	)		123
Net (decrease) increase in cash and cash equivalents		(397	)			(956	)		559				231				(840	)		1,256			(570	)		385
Cash and cash equivalents at beginning of period		566				1,125			566				335				1,406			150			720			335
Cash and cash equivalents at end of period		169				169			1,125				566				566			1,406			150			720
Other information
Free cash flow per share	$	1.38			$	1.11		$	0.27			$	3.46			$	1.01		$	1.06		$	1.05		$	0.34
Annualized cash flow yield		6.3	%			6.3	%		6.0	%			6.1	%			6.1	%		6.5	%		6.6	%		7.0	%

BCE Supplementary Financial Information - Second Quarter 2015 Page 13

Accompanying Notes

	Beginning January 1, 2015, we report our results of operations in three segments: Bell Wireless, Bell Wireline and Bell Media. Our reporting structure reflects how we manage our business and how we classify our operations for planning and measuring performance.
(1)	Throughout this report, we, us, our, the company and BCE mean, as the context may require, either BCE Inc. or, collectively, BCE Inc., its subsidiaries, joint arrangements and associates; and Bell Aliant means, as the context may require, until December 31, 2014, either Bell Aliant Inc. or, collectively, Bell Aliant Inc. and its subsidiaries and associates, or, after December 31, 2014 and up to, and including, June 30, 2015, either Bell Aliant Regional Communications Inc. or, collectively, Bell Aliant Regional Communications Inc. and its subsidiaries and associates.
(2)	On October 31, 2014, BCE completed the acquisition of all the issued and outstanding shares of Bell Aliant that it did not already own, therefore eliminating the 55.9% ownership interest held by non-controlling interest. Beginning January 1, 2015, the results of operation of our former Bell Aliant segment are included within our Bell Wireless and Bell Wireline segments, with prior periods restated for comparative purposes.
(3)	Non-GAAP Financial Measures Adjusted EBITDA and Adjusted EBITDA margin The terms Adjusted EBITDA and Adjusted 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 Adjusted EBITDA as operating revenues less operating costs (including post-employment benefit plans service cost). We define Adjusted EBITDA margin as Adjusted EBITDA divided by operating revenues. We use Adjusted EBITDA and Adjusted EBITDA margin to evaluate the performance of our businesses as they reflect their ongoing profitability. We believe that certain investors and analysts use Adjusted 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 Adjusted EBITDA and Adjusted EBITDA margin to evaluate the performance of our businesses. Adjusted EBITDA also is one component in the determination of short-term incentive compensation for all management employees. Adjusted EBITDA and Adjusted EBITDA margin have no directly comparable IFRS financial measure. Alternatively, Adjusted 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 early debt redemption costs. We define Adjusted EPS as Adjusted net earnings per BCE common share.

BCE Supplementary Financial Information - Second Quarter 2015 Page 14

Accompanying Notes

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 early debt redemption costs, 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.

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.

As of November 1, 2014, BCE’s Free Cash Flow includes 100% of Bell Aliant’s Free Cash Flow rather than cash dividends received from Bell Aliant. We define Free Cash Flow as cash flows from operating activities, excluding acquisition costs paid and voluntary pension funding, less capital expenditures, preferred share dividends and dividends paid by subsidiaries to non-controlling interest.

Prior to November 1, 2014, Free Cash Flow was defined 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.

BCE Supplementary Financial Information - Second Quarter 2015 Page 15

Accompanying Notes

	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. 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 the period. Net Debt to Adjusted EBITDA Net Debt to Adjusted EBITDA is BCE Net Debt divided by Adjusted EBITDA. Net Debt is debt due within one year plus long-term debt and 50% of preferred shares less cash and cash equivalents. For the purposes of calculating our Net Debt to Adjusted EBITDA ratio, Adjusted EBITDA is defined as twelve-month trailing BCE Adjusted EBITDA. Adjusted EBITDA to net interest expense Adjusted EBITDA to net interest expense is Adjusted EBITDA divided by net interest expense. For the purposes of calculating our Adjusted EBITDA to net interest expense ratio, Adjusted EBITDA is defined as twelve-month trailing BCE Adjusted EBITDA. Net interest expense is twelve-month trailing BCE interest expense excluding interest on post-employment benefit obligations and including 50% of preferred dividends.
(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 - Second Quarter 2015 Page 16