EX-99.2 3 992-supp_q118.htm SUPPLEMENTARY FINANCIAL INFORMATION - FIRST QUARTER 2018

Exhibit 99.2

BCE (1) (2) (3)
Consolidated Operational Data

(In millions of Canadian dollars, except share amounts) (unaudited) |  | Q1 2018 |  |  | Q1 2017 |  |  |  | $ change |  | % change |
Operating revenues |  |  |  |  |  |  |  |  |  |  |  |
Service |  | 4,964 |  |  | 4,811 |  |  |  | 153 |  | 3.2 | %
Product |  | 626 |  |  | 525 |  |  |  | 101 |  | 19.2 | %
Total operating revenues |  | 5,590 |  |  | 5,336 |  |  |  | 254 |  | 4.8 | %
Operating costs |  | (3,263 | ) |  | (3,120 | ) |  |  | (143 | ) | (4.6 | %)
Post-employment benefit plans service cost |  | (73 | ) |  | (50 | ) |  |  | (23 | ) | (46.0 | %)
Adjusted EBITDA (4) |  | 2,254 |  |  | 2,166 |  |  |  | 88 |  | 4.1 | %
Adjusted EBITDA margin (4) |  | 40.3 | % |  | 40.6 | % |  |  |  |  | (0.3 | ) pts
Severance, acquisition and other costs |  | - |  |  | (84 | ) |  |  | 84 |  | 100.0 | %
Depreciation |  | (780 | ) |  | (724 | ) |  |  | (56 | ) | (7.7 | %)
Amortization |  | (212 | ) |  | (185 | ) |  |  | (27 | ) | (14.6 | %)
Finance costs |  |  |  |  |  |  |  |  |  |  |  |
Interest expense |  | (240 | ) |  | (234 | ) |  |  | (6 | ) | (2.6 | %)
Interest on post-employment benefit obligations |  | (17 | ) |  | (18 | ) |  |  | 1 |  | 5.6 | %
Other (expense) income |  | (61 | ) |  | 17 |  |  |  | (78 | ) | n.m. |
Income taxes |  | (235 | ) |  | (250 | ) |  |  | 15 |  | 6.0 | %
Net earnings |  | 709 |  |  | 688 |  |  |  | 21 |  | 3.1 | %
Net earnings attributable to: |  |  |  |  |  |  |  |  |  |  |  |
Common shareholders |  | 661 |  |  | 642 |  |  |  | 19 |  | 3.0 | %
Preferred shareholders |  | 36 |  |  | 31 |  |  |  | 5 |  | 16.1 | %
Non-controlling interest |  | 12 |  |  | 15 |  |  |  | (3 | ) | (20.0 | %)
Net earnings |  | 709 |  |  | 688 |  |  |  | 21 |  | 3.1 | %
Net earnings per common share - basic | $ | 0.73 |  | $ | 0.73 |  |  |  | - |  | - |
Net earnings per common share - diluted | $ | 0.73 |  | $ | 0.73 |  |  |  | - |  | - |
Dividends per common share | $ | 0.7550 |  | $ | 0.7175 |  |  | $ | 0.0375 |  | 5.2 | %
Average number of common shares outstanding - basic (millions) |  | 900.2 |  |  | 875.7 |  |  |  |  |  |  |
Average number of common shares outstanding - diluted (millions) |  | 900.6 |  |  | 876.6 |  |  |  |  |  |  |
Number of common shares outstanding (millions) |  | 898.0 |  |  | 899.5 |  |  |  |  |  |  |
Adjusted net earnings and EPS |  |  |  |  |  |  |  |  |  |  |  |
Net earnings attributable to common shareholders |  | 661 |  |  | 642 |  |  |  | 19 |  | 3.0 | %
Severance, acquisition and other costs |  | (1 | ) |  | 65 |  |  |  | (66 | ) | n.m. |
Net mark-to-market losses (gains) on derivatives used to economically hedge equity settled share-based compensation plans |  | 56 |  |  | (18 | ) |  |  | 74 |  | n.m. |
Net losses on investments |  | - |  |  | 14 |  |  |  | (14 | ) | (100.0 | %)
Impairment charges |  | 3 |  |  | - |  |  |  | 3 |  | n.m. |
Adjusted net earnings (4) |  | 719 |  |  | 703 |  |  |  | 16 |  | 2.3 | %
Impact on net earnings per share | $ | 0.07 |  | $ | 0.07 |  |  |  | - |  | - |
Adjusted EPS (4) | $ | 0.80 |  | $ | 0.80 |  |  |  | - |  | - |

n.m. : not meaningful

BCE Supplementary Financial Information – First Quarter 2018 Page 2

BCE
Consolidated Operational Data - Historical Trend

(In millions of Canadian dollars, except share amounts) (unaudited) |  | Q1 18 |  |  |  | TOTAL 2017 |  |  |  | Q4 17 |  |  | Q3 17 |  |  | Q2 17 |  |  | Q1 17 |
Operating revenues |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Service |  | 4,964 |  |  |  | 20,095 |  |  |  | 5,152 |  |  | 5,054 |  |  | 5,078 |  |  | 4,811 |
Product |  | 626 |  |  |  | 2,662 |  |  |  | 884 |  |  | 643 |  |  | 610 |  |  | 525 |
Total operating revenues |  | 5,590 |  |  |  | 22,757 |  |  |  | 6,036 |  |  | 5,697 |  |  | 5,688 |  |  | 5,336 |
Operating costs |  | (3,263 | ) |  |  | (13,233 | ) |  |  | (3,643 | ) |  | (3,228 | ) |  | (3,242 | ) |  | (3,120 | )
Post-employment benefit plans service cost |  | (73 | ) |  |  | (242 | ) |  |  | (64 | ) |  | (64 | ) |  | (64 | ) |  | (50 | )
Adjusted EBITDA |  | 2,254 |  |  |  | 9,282 |  |  |  | 2,329 |  |  | 2,405 |  |  | 2,382 |  |  | 2,166 |
Adjusted EBITDA margin |  | 40.3 | % |  |  | 40.8 | % |  |  | 38.6 | % |  | 42.2 | % |  | 41.9 | % |  | 40.6 | %
Severance, acquisition and other costs |  | - |  |  |  | (190 | ) |  |  | (47 | ) |  | (23 | ) |  | (36 | ) |  | (84 | )
Depreciation |  | (780 | ) |  |  | (3,034 | ) |  |  | (783 | ) |  | (760 | ) |  | (767 | ) |  | (724 | )
Amortization |  | (212 | ) |  |  | (810 | ) |  |  | (208 | ) |  | (207 | ) |  | (210 | ) |  | (185 | )
Finance costs |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Interest expense |  | (240 | ) |  |  | (955 | ) |  |  | (241 | ) |  | (242 | ) |  | (238 | ) |  | (234 | )
Interest on post-employment benefit obligations |  | (17 | ) |  |  | (72 | ) |  |  | (18 | ) |  | (18 | ) |  | (18 | ) |  | (18 | )
Other (expense) income |  | (61 | ) |  |  | (102 | ) |  |  | (62 | ) |  | (56 | ) |  | (1 | ) |  | 17 |
Income taxes |  | (235 | ) |  |  | (1,069 | ) |  |  | (272 | ) |  | (249 | ) |  | (298 | ) |  | (250 | )
Net earnings |  | 709 |  |  |  | 3,050 |  |  |  | 698 |  |  | 850 |  |  | 814 |  |  | 688 |
Net earnings attributable to: |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Common shareholders |  | 661 |  |  |  | 2,866 |  |  |  | 656 |  |  | 803 |  |  | 765 |  |  | 642 |
Preferred shareholders |  | 36 |  |  |  | 128 |  |  |  | 34 |  |  | 31 |  |  | 32 |  |  | 31 |
Non-controlling interest |  | 12 |  |  |  | 56 |  |  |  | 8 |  |  | 16 |  |  | 17 |  |  | 15 |
Net earnings |  | 709 |  |  |  | 3,050 |  |  |  | 698 |  |  | 850 |  |  | 814 |  |  | 688 |
Net earnings per common share - basic | $ | 0.73 |  |  | $ | 3.20 |  |  | $ | 0.72 |  | $ | 0.90 |  | $ | 0.85 |  | $ | 0.73 |
Net earnings per common share - diluted | $ | 0.73 |  |  | $ | 3.20 |  |  | $ | 0.72 |  | $ | 0.90 |  | $ | 0.85 |  | $ | 0.73 |
Dividends per common share | $ | 0.7550 |  |  | $ | 2.8700 |  |  | $ | 0.7175 |  | $ | 0.7175 |  | $ | 0.7175 |  | $ | 0.7175 |
Average number of common shares outstanding - basic (millions) |  | 900.2 |  |  |  | 894.3 |  |  |  | 900.6 |  |  | 900.4 |  |  | 900.1 |  |  | 875.7 |
Average number of common shares outstanding - diluted (millions) |  | 900.6 |  |  |  | 894.9 |  |  |  | 901.4 |  |  | 901.1 |  |  | 901.0 |  |  | 876.6 |
Number of common shares outstanding (millions) |  | 898.0 |  |  |  | 901.0 |  |  |  | 901.0 |  |  | 900.4 |  |  | 900.4 |  |  | 899.5 |
Adjusted net earnings and EPS |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net earnings attributable to common shareholders |  | 661 |  |  |  | 2,866 |  |  |  | 656 |  |  | 803 |  |  | 765 |  |  | 642 |
Severance, acquisition and other costs |  | (1 | ) |  |  | 143 |  |  |  | 34 |  |  | 17 |  |  | 27 |  |  | 65 |
Net mark-to-market losses (gains) on derivatives used to economically hedge equity settled share-based compensation plans |  | 56 |  |  |  | (55 | ) |  |  | (29 | ) |  | (8 | ) |  | - |  |  | (18 | )
Net losses on investments |  | - |  |  |  | 29 |  |  |  | 15 |  |  | - |  |  | - |  |  | 14 |
Early debt redemption costs |  | - |  |  |  | 15 |  |  |  | - |  |  | 12 |  |  | 3 |  |  | - |
Impairment charges |  | 3 |  |  |  | 60 |  |  |  | 60 |  |  | - |  |  | - |  |  | - |
Adjusted net earnings |  | 719 |  |  |  | 3,058 |  |  |  | 736 |  |  | 824 |  |  | 795 |  |  | 703 |
Impact on net earnings per share | $ | 0.07 |  |  | $ | 0.22 |  |  | $ | 0.10 |  | $ | 0.01 |  | $ | 0.04 |  | $ | 0.07 |
Adjusted EPS | $ | 0.80 |  |  | $ | 3.42 |  |  | $ | 0.82 |  | $ | 0.91 |  | $ | 0.89 |  | $ | 0.80 |

BCE Supplementary Financial Information – First Quarter 2018 Page 3

BCE
Segmented Data

(In millions of Canadian dollars, except where otherwise indicated) (unaudited) | Q1 2018 |  | Q1 2017 |  |  | $ change |  | % change |
Operating revenues |  |  |  |  |  |  |  |  |
Bell Wireless | 1,946 |  | 1,767 |  |  | 179 |  | 10.1 | %
Bell Wireline | 3,084 |  | 2,977 |  |  | 107 |  | 3.6 | %
Bell Media | 749 |  | 751 |  |  | (2 | ) | (0.3 | %)
Inter-segment eliminations | (189 | ) | (159 | ) |  | (30 | ) | (18.9 | %)
Total | 5,590 |  | 5,336 |  |  | 254 |  | 4.8 | %
Operating costs |  |  |  |  |  |  |  |  |
Bell Wireless | (1,124 | ) | (998 | ) |  | (126 | ) | (12.6 | %)
Bell Wireline | (1,782 | ) | (1,714 | ) |  | (68 | ) | (4.0 | %)
Bell Media | (619 | ) | (617 | ) |  | (2 | ) | (0.3 | %)
Inter-segment eliminations | 189 |  | 159 |  |  | 30 |  | 18.9 | %
Total | (3,336 | ) | (3,170 | ) |  | (166 | ) | (5.2 | %)
Adjusted EBITDA |  |  |  |  |  |  |  |  |
Bell Wireless | 822 |  | 769 |  |  | 53 |  | 6.9 | %
Margin | 42.2 | % | 43.5 | % |  |  |  | (1.3 | ) pts
Bell Wireline | 1,302 |  | 1,263 |  |  | 39 |  | 3.1 | %
Margin | 42.2 | % | 42.4 | % |  |  |  | (0.2 | ) pts
Bell Media | 130 |  | 134 |  |  | (4 | ) | (3.0 | %)
Margin | 17.4 | % | 17.8 | % |  |  |  | (0.4 | ) pts
Total | 2,254 |  | 2,166 |  |  | 88 |  | 4.1 | %
Margin | 40.3 | % | 40.6 | % |  |  |  | (0.3 | ) pts
Capital expenditures |  |  |  |  |  |  |  |  |
Bell Wireless | 164 |  | 136 |  |  | (28 | ) | (20.6 | %)
Capital intensity (5) | 8.4 | % | 7.7 | % |  |  |  | (0.7 | ) pts
Bell Wireline | 747 |  | 691 |  |  | (56 | ) | (8.1 | %)
Capital intensity | 24.2 | % | 23.2 | % |  |  |  | (1.0 | ) pts
Bell Media | 20 |  | 25 |  |  | 5 |  | 20.0 | %
Capital intensity | 2.7 | % | 3.3 | % |  |  |  | 0.6 | pts
Total | 931 |  | 852 |  |  | (79 | ) | (9.3 | %)
Capital intensity | 16.7 | % | 16.0 | % |  |  |  | (0.7 | ) pts

BCE Supplementary Financial Information – First Quarter 2018 Page 4

BCE
Segmented Data - Historical Trend

(In millions of Canadian dollars, except where otherwise indicated) (unaudited) | Q1 18 |  |  | TOTAL 2017 |  |  | Q4 17 |  | Q3 17 |  | Q2 17 |  | Q1 17 |
Operating revenues |  |  |  |  |  |  |  |  |  |  |  |  |  |
Bell Wireless | 1,946 |  |  | 7,926 |  |  | 2,149 |  | 2,061 |  | 1,949 |  | 1,767 |
Bell Wireline | 3,084 |  |  | 12,400 |  |  | 3,218 |  | 3,088 |  | 3,117 |  | 2,977 |
Bell Media | 749 |  |  | 3,104 |  |  | 834 |  | 723 |  | 796 |  | 751 |
Inter-segment eliminations | (189 | ) |  | (673 | ) |  | (165 | ) | (175 | ) | (174 | ) | (159 | )
Total | 5,590 |  |  | 22,757 |  |  | 6,036 |  | 5,697 |  | 5,688 |  | 5,336 |
Operating costs |  |  |  |  |  |  |  |  |  |  |  |  |  |
Bell Wireless | (1,124 | ) |  | (4,550 | ) |  | (1,303 | ) | (1,151 | ) | (1,098 | ) | (998 | )
Bell Wireline | (1,782 | ) |  | (7,210 | ) |  | (1,906 | ) | (1,780 | ) | (1,810 | ) | (1,714 | )
Bell Media | (619 | ) |  | (2,388 | ) |  | (663 | ) | (536 | ) | (572 | ) | (617 | )
Inter-segment eliminations | 189 |  |  | 673 |  |  | 165 |  | 175 |  | 174 |  | 159 |
Total | (3,336 | ) |  | (13,475 | ) |  | (3,707 | ) | (3,292 | ) | (3,306 | ) | (3,170 | )
Adjusted EBITDA |  |  |  |  |  |  |  |  |  |  |  |  |  |
Bell Wireless | 822 |  |  | 3,376 |  |  | 846 |  | 910 |  | 851 |  | 769 |
Margin | 42.2 | % |  | 42.6 | % |  | 39.4 | % | 44.2 | % | 43.7 | % | 43.5 | %
Bell Wireline | 1,302 |  |  | 5,190 |  |  | 1,312 |  | 1,308 |  | 1,307 |  | 1,263 |
Margin | 42.2 | % |  | 41.9 | % |  | 40.8 | % | 42.4 | % | 41.9 | % | 42.4 | %
Bell Media | 130 |  |  | 716 |  |  | 171 |  | 187 |  | 224 |  | 134 |
Margin | 17.4 | % |  | 23.1 | % |  | 20.5 | % | 25.9 | % | 28.1 | % | 17.8 | %
Total | 2,254 |  |  | 9,282 |  |  | 2,329 |  | 2,405 |  | 2,382 |  | 2,166 |
Margin | 40.3 | % |  | 40.8 | % |  | 38.6 | % | 42.2 | % | 41.9 | % | 40.6 | %
Capital expenditures |  |  |  |  |  |  |  |  |  |  |  |  |  |
Bell Wireless | 164 |  |  | 731 |  |  | 218 |  | 186 |  | 191 |  | 136 |
Capital intensity | 8.4 | % |  | 9.2 | % |  | 10.1 | % | 9.0 | % | 9.8 | % | 7.7 | %
Bell Wireline | 747 |  |  | 3,174 |  |  | 845 |  | 820 |  | 818 |  | 691 |
Capital intensity | 24.2 | % |  | 25.6 | % |  | 26.3 | % | 26.6 | % | 26.2 | % | 23.2 | %
Bell Media | 20 |  |  | 129 |  |  | 37 |  | 34 |  | 33 |  | 25 |
Capital intensity | 2.7 | % |  | 4.2 | % |  | 4.4 | % | 4.7 | % | 4.1 | % | 3.3 | %
Total | 931 |  |  | 4,034 |  |  | 1,100 |  | 1,040 |  | 1,042 |  | 852 |
Capital intensity | 16.7 | % |  | 17.7 | % |  | 18.2 | % | 18.3 | % | 18.3 | % | 16.0 | %

BCE Supplementary Financial Information – First Quarter 2018 Page 5

BCE
Segmented Data - IFRS 15 Adoption Impacts (2)

(In millions of Canadian dollars, except where otherwise indicated) (unaudited) | TOTAL 2017 |  | Q4 17 |  | Q3 17 |  | Q2 17 |  | Q1 17
As previously reported | IFRS 15 impacts | Upon adoption of IFRS 15 |  | As previously reported | IFRS 15 impacts | Upon adoption of IFRS 15 |  | As previously reported | IFRS 15 impacts | Upon adoption of IFRS 15 |  | As previously reported | IFRS 15 impacts | Upon adoption of IFRS 15 |  | As previously reported | IFRS 15 impacts | Upon adoption of IFRS 15
Operating revenues |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Bell Wireless |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Service | 7,350 | (1,260) | 6,090 |  | 1,894 | (338) | 1,556 |  | 1,913 | (323) | 1,590 |  | 1,828 | (309) | 1,519 |  | 1,715 | (290) | 1,425
Product | 533 | 1,303 | 1,836 |  | 176 | 417 | 593 |  | 127 | 344 | 471 |  | 131 | 299 | 430 |  | 99 | 243 | 342
Total Bell Wireless | 7,883 | 43 | 7,926 |  | 2,070 | 79 | 2,149 |  | 2,040 | 21 | 2,061 |  | 1,959 | (10) | 1,949 |  | 1,814 | (47) | 1,767
Bell Wireline | 12,415 | (15) | 12,400 |  | 3,222 | (4) | 3,218 |  | 3,092 | (4) | 3,088 |  | 3,121 | (4) | 3,117 |  | 2,980 | (3) | 2,977
Bell Media | 3,104 | - | 3,104 |  | 834 | - | 834 |  | 723 | - | 723 |  | 796 | - | 796 |  | 751 | - | 751
Inter-segment eliminations | (683) | 10 | (673) |  | (168) | 3 | (165) |  | (177) | 2 | (175) |  | (177) | 3 | (174) |  | (161) | 2 | (159)
Total | 22,719 | 38 | 22,757 |  | 5,958 | 78 | 6,036 |  | 5,678 | 19 | 5,697 |  | 5,699 | (11) | 5,688 |  | 5,384 | (48) | 5,336
Operating costs |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Bell Wireless | (4,607) | 57 | (4,550) |  | (1,334) | 31 | (1,303) |  | (1,169) | 18 | (1,151) |  | (1,108) | 10 | (1,098) |  | (996) | (2) | (998)
Bell Wireline | (7,229) | 19 | (7,210) |  | (1,912) | 6 | (1,906) |  | (1,784) | 4 | (1,780) |  | (1,815) | 5 | (1,810) |  | (1,718) | 4 | (1,714)
Bell Media | (2,388) | - | (2,388) |  | (663) | - | (663) |  | (536) | - | (536) |  | (572) | - | (572) |  | (617) | - | (617)
Inter-segment eliminations | 683 | (10) | 673 |  | 168 | (3) | 165 |  | 177 | (2) | 175 |  | 177 | (3) | 174 |  | 161 | (2) | 159
Total | (13,541) | 66 | (13,475) |  | (3,741) | 34 | (3,707) |  | (3,312) | 20 | (3,292) |  | (3,318) | 12 | (3,306) |  | (3,170) | - | (3,170)
Adjusted EBITDA |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Bell Wireless | 3,276 | 100 | 3,376 |  | 736 | 110 | 846 |  | 871 | 39 | 910 |  | 851 | - | 851 |  | 818 | (49) | 769
Margin | 41.6% | 1.0 pts | 42.6% |  | 35.6% | 3.8 pts | 39.4% |  | 42.7% | 1.5 pts | 44.2% |  | 43.4% | 0.3 pts | 43.7% |  | 45.1% | (1.6) pts | 43.5%
Bell Wireline | 5,186 | 4 | 5,190 |  | 1,310 | 2 | 1,312 |  | 1,308 | - | 1,308 |  | 1,306 | 1 | 1,307 |  | 1,262 | 1 | 1,263
Margin | 41.8% | 0.1 pts | 41.9% |  | 40.7% | 0.1 pts | 40.8% |  | 42.3% | 0.1 pts | 42.4% |  | 41.8% | 0.1 pts | 41.9% |  | 42.3% | 0.1 pts | 42.4%
Bell Media | 716 | - | 716 |  | 171 | - | 171 |  | 187 | - | 187 |  | 224 | - | 224 |  | 134 | - | 134
Margin | 23.1% | - | 23.1% |  | 20.5% | - | 20.5% |  | 25.9% | - | 25.9% |  | 28.1% | - | 28.1% |  | 17.8% | - | 17.8%
Total | 9,178 | 104 | 9,282 |  | 2,217 | 112 | 2,329 |  | 2,366 | 39 | 2,405 |  | 2,381 | 1 | 2,382 |  | 2,214 | (48) | 2,166
Margin | 40.4% | 0.4 pts | 40.8% |  | 37.2% | 1.4 pts | 38.6% |  | 41.7% | 0.5 pts | 42.2% |  | 41.8% | 0.1 pts | 41.9% |  | 41.1% | (0.5) pts | 40.6%

BCE Supplementary Financial Information – First Quarter 2018 Page 6

Bell Wireless (1) (2) (3)

(In millions of Canadian dollars, except where otherwise indicated) (unaudited) | Q1 2018 |  | Q1 2017 |  |  | % change |
Bell Wireless |  |  |  |  |  |  |
Operating revenues |  |  |  |  |  |  |
External service revenues | 1,500 |  | 1,415 |  |  | 6.0 | %
Inter-segment service revenues | 12 |  | 10 |  |  | 20.0 | %
Total operating service revenues | 1,512 |  | 1,425 |  |  | 6.1 | %
External product revenues | 434 |  | 341 |  |  | 27.3 | %
Inter-segment product revenues | - |  | 1 |  |  | (100.0 | %)
Total operating product revenues | 434 |  | 342 |  |  | 26.9 | %
Total external revenues | 1,934 |  | 1,756 |  |  | 10.1 | %
Total operating revenues | 1,946 |  | 1,767 |  |  | 10.1 | %
Operating costs | (1,124 | ) | (998 | ) |  | (12.6 | %)
Adjusted EBITDA | 822 |  | 769 |  |  | 6.9 | %
Adjusted EBITDA margin (Total operating revenues) | 42.2 | % | 43.5 | % |  | (1.3 | ) pts
Adjusted EBITDA margin (Operating service revenues) | 54.4 | % | 54.0 | % |  | 0.4 | pts
Capital expenditures | 164 |  | 136 |  |  | (20.6 | %)
Capital intensity | 8.4 | % | 7.7 | % |  | (0.7 | ) pts
Wireless gross activations | 404,790 |  | 348,452 |  |  | 16.2 | %
Postpaid | 347,319 |  | 296,616 |  |  | 17.1 | %
Wireless net activations | 44,377 |  | 672 |  |  | n.m. |
Postpaid | 68,487 |  | 35,782 |  |  | 91.4 | %
Wireless subscribers end of period (EOP)(A)(B) | 9,195,048 |  | 8,946,476 |  |  | 2.8 | %
Postpaid(A)(B) | 8,471,021 |  | 8,144,936 |  |  | 4.0 | %
Blended Average revenue per user(C)(5) (ARPU)($/month) | 54.28 |  | 54.31 |  |  | (0.1 | %)
Blended Average billing per user(C)(5) (ABPU)($/month) | 66.56 |  | 65.66 |  |  | 1.4 | %
Churn (%) (5) (average per month) | 1.31 | % | 1.36 | % |  | 0.05 | pts
Prepaid | 3.40 | % | 3.29 | % |  | (0.11 | ) pts
Postpaid | 1.13 | % | 1.17 | % |  | 0.04 | pts

n.m. : not meaningful
(A) | At the beginning of Q1 2018, we adjusted our postpaid wireless subscriber base to remove 16,116 subscribers with a corresponding increase to our high-speed Internet subscribers to reflect the transfer of fixed wireless Internet subscribers.
(B) | In Q2 2017, Bell’s wireless subscriber base reflected the divestiture of 104,833 postpaid subscribers to TELUS Communications Inc. (Telus) related to BCE’s acquisition of MTS. Bell’s wireless subscriber base in Q2 2017 also reflected the removal of 7,268 subscribers (2,450 postpaid and 4,818 prepaid), due to the decommissioning of the code division multiple access (CDMA) network in western Canada.
(C) | Our Q1 2018 blended ARPU and blended ABPU were adjusted to exclude the unfavourable retroactive impact of the recent CRTC decision on wholesale wireless domestic roaming rates of $14 million.

BCE Supplementary Financial Information – First Quarter 2018 Page 7

Bell Wireless - Historical Trend

(In millions of Canadian dollars, except where otherwise indicated) (unaudited) | Q1 18 |  |  | TOTAL 2017 |  |  | Q4 17 |  | Q3 17 |  | Q2 17 |  | Q1 17 |
Bell Wireless |  |  |  |  |  |  |  |  |  |  |  |  |  |
Operating revenues |  |  |  |  |  |  |  |  |  |  |  |  |  |
External service revenues | 1,500 |  |  | 6,048 |  |  | 1,545 |  | 1,580 |  | 1,508 |  | 1,415 |
Inter-segment service revenues | 12 |  |  | 42 |  |  | 11 |  | 10 |  | 11 |  | 10 |
Total operating service revenues | 1,512 |  |  | 6,090 |  |  | 1,556 |  | 1,590 |  | 1,519 |  | 1,425 |
External product revenues | 434 |  |  | 1,833 |  |  | 593 |  | 469 |  | 430 |  | 341 |
Inter-segment product revenues | - |  |  | 3 |  |  | - |  | 2 |  | - |  | 1 |
Total operating product revenues | 434 |  |  | 1,836 |  |  | 593 |  | 471 |  | 430 |  | 342 |
Total external revenues | 1,934 |  |  | 7,881 |  |  | 2,138 |  | 2,049 |  | 1,938 |  | 1,756 |
Total operating revenues | 1,946 |  |  | 7,926 |  |  | 2,149 |  | 2,061 |  | 1,949 |  | 1,767 |
Operating costs | (1,124 | ) |  | (4,550 | ) |  | (1,303 | ) | (1,151 | ) | (1,098 | ) | (998 | )
Adjusted EBITDA | 822 |  |  | 3,376 |  |  | 846 |  | 910 |  | 851 |  | 769 |
Adjusted EBITDA margin (Total operating revenues) | 42.2 | % |  | 42.6 | % |  | 39.4 | % | 44.2 | % | 43.7 | % | 43.5 | %
Adjusted EBITDA margin (Operating service revenues) | 54.4 | % |  | 55.4 | % |  | 54.4 | % | 57.2 | % | 56.0 | % | 54.0 | %
Capital expenditures | 164 |  |  | 731 |  |  | 218 |  | 186 |  | 191 |  | 136 |
Capital intensity | 8.4 | % |  | 9.2 | % |  | 10.1 | % | 9.0 | % | 9.8 | % | 7.7 | %
Wireless gross activations | 404,790 |  |  | 1,780,478 |  |  | 568,555 |  | 460,053 |  | 403,418 |  | 348,452 |
Postpaid | 347,319 |  |  | 1,532,425 |  |  | 505,432 |  | 390,985 |  | 339,392 |  | 296,616 |
Wireless net activations (losses) | 44,377 |  |  | 333,084 |  |  | 158,514 |  | 106,982 |  | 66,916 |  | 672 |
Postpaid | 68,487 |  |  | 416,779 |  |  | 175,204 |  | 117,182 |  | 88,611 |  | 35,782 |
Wireless subscribers EOP(A)(B) | 9,195,048 |  |  | 9,166,787 |  |  | 9,166,787 |  | 9,008,273 |  | 8,901,291 |  | 8,946,476 |
Postpaid(A)(B) | 8,471,021 |  |  | 8,418,650 |  |  | 8,418,650 |  | 8,243,446 |  | 8,126,264 |  | 8,144,936 |
Blended ARPU(C) ($/month) | 54.28 |  |  | 55.88 |  |  | 55.77 |  | 57.77 |  | 55.61 |  | 54.31 |
Blended ABPU(C) ($/month) | 66.56 |  |  | 67.77 |  |  | 68.27 |  | 69.78 |  | 67.28 |  | 65.66 |
Churn (%)(average per month) | 1.31 | % |  | 1.36 | % |  | 1.51 | % | 1.32 | % | 1.27 | % | 1.36 | %
Prepaid | 3.40 | % |  | 3.17 | % |  | 3.25 | % | 2.95 | % | 3.19 | % | 3.29 | %
Postpaid | 1.13 | % |  | 1.19 | % |  | 1.35 | % | 1.16 | % | 1.08 | % | 1.17 | %

(A) | At the beginning of Q1 2018, we adjusted our postpaid wireless subscriber base to remove 16,116 subscribers with a corresponding increase to our high-speed Internet subscribers to reflect the transfer of fixed wireless Internet subscribers.
(B) | In Q2 2017, Bell’s wireless subscriber base reflected the divestiture of 104,833 postpaid subscribers to Telus related to BCE’s acquisition of MTS. Bell’s wireless subscriber base in Q2 2017 also reflected the removal of 7,268 subscribers (2,450 postpaid and 4,818 prepaid), due to the decommissioning of the CDMA network in western Canada.
(C) | Our Q1 2018 blended ARPU and blended ABPU were adjusted to exclude the unfavourable retroactive impact of the recent CRTC decision on wholesale wireless domestic roaming rates of $14 million.

BCE Supplementary Financial Information – First Quarter 2018 Page 8

Bell Wireline (1) (2) (3)

(In millions of Canadian dollars, except where otherwise indicated) (unaudited) | Q1 2018 |  | Q1 2017 |  |  | % change |
Bell Wireline |  |  |  |  |  |  |
Operating revenues |  |  |  |  |  |  |
Data | 1,820 |  | 1,719 |  |  | 5.9 | %
Voice | 950 |  | 981 |  |  | (3.2 | %)
Other services | 63 |  | 44 |  |  | 43.2 | %
Total external service revenues | 2,833 |  | 2,744 |  |  | 3.2 | %
Inter-segment service revenues | 59 |  | 49 |  |  | 20.4 | %
Total operating service revenues | 2,892 |  | 2,793 |  |  | 3.5 | %
Data | 104 |  | 99 |  |  | 5.1 | %
Equipment and other | 88 |  | 85 |  |  | 3.5 | %
Total external product revenues | 192 |  | 184 |  |  | 4.3 | %
Inter-segment product revenues | - |  | - |  |  | - |
Total operating product revenues | 192 |  | 184 |  |  | 4.3 | %
Total external revenues | 3,025 |  | 2,928 |  |  | 3.3 | %
Total operating revenues | 3,084 |  | 2,977 |  |  | 3.6 | %
Operating costs | (1,782 | ) | (1,714 | ) |  | (4.0 | %)
Adjusted EBITDA | 1,302 |  | 1,263 |  |  | 3.1 | %
Adjusted EBITDA margin | 42.2 | % | 42.4 | % |  | (0.2 | ) pts
Capital expenditures | 747 |  | 691 |  |  | (8.1 | %)
Capital intensity | 24.2 | % | 23.2 | % |  | (1.0 | ) pts
High-speed Internet |  |  |  |  |  |  |
High-speed Internet net activations | 19,647 |  | 14,989 |  |  | 31.1 | %
High-speed Internet subscribers EOP(A)(B) | 3,845,739 |  | 3,717,270 |  |  | 3.5 | %
TV |  |  |  |  |  |  |
Net subscriber (losses) activations | (12,481 | ) | (15,663 | ) |  | 20.3 | %
Internet protocol television (IPTV) | 13,573 |  | 22,402 |  |  | (39.4 | %)
Total subscribers EOP(B) | 2,834,418 |  | 2,837,353 |  |  | (0.1 | %)
IPTV(B) | 1,578,489 |  | 1,465,007 |  |  | 7.7 | %
Network access services (NAS) |  |  |  |  |  |  |
Residential NAS(B) | 3,197,216 |  | 3,399,981 |  |  | (6.0 | %)
Residential NAS net losses | (57,533 | ) | (73,421 | ) |  | 21.6 | %

(A) | At the beginning of Q1 2018, we adjusted our high-speed Internet subscriber base to add 16,116 subscribers with a corresponding decrease to our postpaid wireless subscribers to reflect the transfer of fixed wireless Internet subscribers.
(B) | At the beginning of Q1 2018, our high-speed Internet subscriber base was increased by 19,835, our IPTV by 14,599 and our residential NAS by 23,441, mainly as a result of a small acquisition made in the quarter.

BCE Supplementary Financial Information – First Quarter 2018 Page 9

Bell Wireline - Historical Trend

(In millions of Canadian dollars, except where otherwise indicated) (unaudited) | Q1 18 |  |  | TOTAL 2017 |  |  | Q4 17 |  | Q3 17 |  | Q2 17 |  | Q1 17 |
Bell Wireline |  |  |  |  |  |  |  |  |  |  |  |  |  |
Operating revenues |  |  |  |  |  |  |  |  |  |  |  |  |  |
Data | 1,820 |  |  | 7,192 |  |  | 1,844 |  | 1,817 |  | 1,812 |  | 1,719 |
Voice | 950 |  |  | 3,968 |  |  | 973 |  | 994 |  | 1,020 |  | 981 |
Other services | 63 |  |  | 211 |  |  | 60 |  | 52 |  | 55 |  | 44 |
Total external service revenues | 2,833 |  |  | 11,371 |  |  | 2,877 |  | 2,863 |  | 2,887 |  | 2,744 |
Inter-segment service revenues | 59 |  |  | 199 |  |  | 50 |  | 51 |  | 49 |  | 49 |
Total operating service revenues | 2,892 |  |  | 11,570 |  |  | 2,927 |  | 2,914 |  | 2,936 |  | 2,793 |
Data | 104 |  |  | 410 |  |  | 137 |  | 79 |  | 95 |  | 99 |
Equipment and other | 88 |  |  | 419 |  |  | 154 |  | 95 |  | 85 |  | 85 |
Total external product revenues | 192 |  |  | 829 |  |  | 291 |  | 174 |  | 180 |  | 184 |
Inter-segment product revenues | - |  |  | 1 |  |  | - |  | - |  | 1 |  | - |
Total operating product revenues | 192 |  |  | 830 |  |  | 291 |  | 174 |  | 181 |  | 184 |
Total external revenues | 3,025 |  |  | 12,200 |  |  | 3,168 |  | 3,037 |  | 3,067 |  | 2,928 |
Total operating revenues | 3,084 |  |  | 12,400 |  |  | 3,218 |  | 3,088 |  | 3,117 |  | 2,977 |
Operating costs | (1,782 | ) |  | (7,210 | ) |  | (1,906 | ) | (1,780 | ) | (1,810 | ) | (1,714 | )
Adjusted EBITDA | 1,302 |  |  | 5,190 |  |  | 1,312 |  | 1,308 |  | 1,307 |  | 1,263 |
Adjusted EBITDA margin | 42.2 | % |  | 41.9 | % |  | 40.8 | % | 42.4 | % | 41.9 | % | 42.4 | %
Capital expenditures | 747 |  |  | 3,174 |  |  | 845 |  | 820 |  | 818 |  | 691 |
Capital intensity | 24.2 | % |  | 25.6 | % |  | 26.3 | % | 26.6 | % | 26.2 | % | 23.2 | %
High-speed Internet |  |  |  |  |  |  |  |  |  |  |  |  |  |
High-speed Internet net activations | 19,647 |  |  | 87,860 |  |  | 27,040 |  | 44,424 |  | 1,407 |  | 14,989 |
High-speed Internet subscribers EOP(A)(B) | 3,845,739 |  |  | 3,790,141 |  |  | 3,790,141 |  | 3,763,101 |  | 3,718,677 |  | 3,717,270 |
TV |  |  |  |  |  |  |  |  |  |  |  |  |  |
Net subscriber (losses) activations | (12,481 | ) |  | (20,716 | ) |  | 6,546 |  | 1,738 |  | (13,337 | ) | (15,663 | )
IPTV | 13,573 |  |  | 107,712 |  |  | 32,484 |  | 36,399 |  | 16,427 |  | 22,402 |
Total subscribers EOP(B) | 2,834,418 |  |  | 2,832,300 |  |  | 2,832,300 |  | 2,825,754 |  | 2,824,016 |  | 2,837,353 |
IPTV(B) | 1,578,489 |  |  | 1,550,317 |  |  | 1,550,317 |  | 1,517,833 |  | 1,481,434 |  | 1,465,007 |
Network access services (NAS) |  |  |  |  |  |  |  |  |  |  |  |  |  |
Residential NAS(B) | 3,197,216 |  |  | 3,231,308 |  |  | 3,231,308 |  | 3,275,589 |  | 3,332,976 |  | 3,399,981 |
Residential NAS net losses | (57,533 | ) |  | (242,094 | ) |  | (44,281 | ) | (57,387 | ) | (67,005 | ) | (73,421 | )

(A) | At the beginning of Q1 2018, we adjusted our high-speed Internet subscriber base to add 16,116 subscribers with a corresponding decrease to our postpaid wireless subscribers to reflect the transfer of fixed wireless Internet subscribers.
(B) | At the beginning of Q1 2018, our high-speed Internet subscriber base was increased by 19,835, our IPTV by 14,599 and our residential NAS by 23,441, mainly as a result of a small acquisition made in the quarter.

BCE Supplementary Financial Information – First Quarter 2018 Page 10

BCE (2) (3)
Net debt and other information

BCE - Net debt and preferred shares |  |  |  |
(In millions of Canadian dollars, except where otherwise indicated) (unaudited) |  |  |  |
| March 31 2018 |  | December 31 2017 |
Debt due within one year | 5,520 |  | 5,178 |
Long-term debt | 19,347 |  | 18,215 |
Preferred shares - BCE (A) | 2,002 |  | 2,002 |
Cash and cash equivalents | (1,199 | ) | (625 | )
Net debt (4) | 25,670 |  | 24,770 |
Net debt leverage ratio (4) | 2.74 |  | 2.67 |
Adjusted EBITDA /net interest expense ratio (4) | 9.22 |  | 9.23 |

Cash flow information |  |  |  |  |  |  |  |
(In millions of Canadian dollars, except where otherwise indicated) (unaudited) | Q1 2018 |  | Q1 2017 |  | $ change |  | % change |
Free cash flow (FCF) (4) |  |  |  |  |  |  |  |
Cash flows from operating activities | 1,496 |  | 1,313 |  | 183 |  | 13.9 | %
Capital expenditures | (931 | ) | (852 | ) | (79 | ) | (9.3 | %)
Dividends paid on preferred shares | (33 | ) | (43 | ) | 10 |  | 23.3 | %
Dividends paid by subsidiaries to non-controlling interest | (13 | ) | (12 | ) | (1 | ) | (8.3 | %)
Acquisition and other costs paid | 18 |  | 83 |  | (65 | ) | (78.3 | %)
FCF | 537 |  | 489 |  | 48 |  | 9.8 | %

Cash flow information - Historical trend |  |  |  |  |  |  |  |  |  |  |  |
(In millions of Canadian dollars, except where otherwise indicated) (unaudited) | Q1 2018 |  | TOTAL 2017 |  | Q4 2017 |  | Q3 2017 |  | Q2 2017 |  | Q1 2017 |
FCF |  |  |  |  |  |  |  |  |  |  |  |
Cash flows from operating activities | 1,496 |  | 7,358 |  | 1,658 |  | 2,233 |  | 2,154 |  | 1,313 |
Capital expenditures | (931 | ) | (4,034 | ) | (1,100 | ) | (1,040 | ) | (1,042 | ) | (852 | )
Dividends paid on preferred shares | (33 | ) | (127 | ) | (33 | ) | (21 | ) | (30 | ) | (43 | )
Dividends paid by subsidiaries to non-controlling interest | (13 | ) | (34 | ) | - |  | (13 | ) | (9 | ) | (12 | )
Acquisition and other costs paid | 18 |  | 155 |  | 27 |  | 24 |  | 21 |  | 83 |
Voluntary defined benefit pension plan contribution | - |  | 100 |  | 100 |  | - |  | - |  | - |
FCF | 537 |  | 3,418 |  | 652 |  | 1,183 |  | 1,094 |  | 489 |

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

BCE Supplementary Financial Information – First Quarter 2018 Page 11

BCE (2) (3)
Consolidated Statements of Financial Position

(In millions of Canadian dollars, except where otherwise indicated) (unaudited) | March 31 2018 |  |  | December 31 2017 |
ASSETS |  |  |  |  |
Current assets |  |  |  |  |
Cash | 675 |  |  | 442 |
Cash equivalents | 524 |  |  | 183 |
Trade and other receivables | 2,938 |  |  | 3,129 |
Inventory | 443 |  |  | 380 |
Contract assets | 836 |  |  | 832 |
Contract costs | 337 |  |  | 350 |
Prepaid expenses | 344 |  |  | 217 |
Other current assets | 169 |  |  | 122 |
Total current assets | 6,266 |  |  | 5,655 |
Non-current assets |  |  |  |  |
Contract assets | 414 |  |  | 431 |
Contract costs | 280 |  |  | 286 |
Property, plant and equipment | 24,169 |  |  | 24,029 |
Intangible assets | 13,410 |  |  | 13,258 |
Deferred tax assets | 153 |  |  | 144 |
Investments in associates and joint ventures | 829 |  |  | 814 |
Other non-current assets | 584 |  |  | 757 |
Goodwill | 10,543 |  |  | 10,428 |
Total non-current assets | 50,382 |  |  | 50,147 |
Total assets | 56,648 |  |  | 55,802 |
LIABILITIES |  |  |  |  |
Current liabilities |  |  |  |  |
Trade payables and other liabilities | 3,534 |  |  | 3,875 |
Contract liabilities | 706 |  |  | 693 |
Interest payable | 176 |  |  | 168 |
Dividends payable | 701 |  |  | 678 |
Current tax liabilities | 49 |  |  | 140 |
Debt due within one year | 5,520 |  |  | 5,178 |
Total current liabilities | 10,686 |  |  | 10,732 |
Non-current liabilities |  |  |  |  |
Contract liabilities | 196 |  |  | 201 |
Long-term debt | 19,347 |  |  | 18,215 |
Deferred tax liabilities | 2,916 |  |  | 2,870 |
Post-employment benefit obligations | 2,124 |  |  | 2,108 |
Other non-current liabilities | 1,083 |  |  | 1,051 |
Total non-current liabilities | 25,666 |  |  | 24,445 |
Total liabilities | 36,352 |  |  | 35,177 |
EQUITY |  |  |  |  |
Equity attributable to BCE shareholders |  |  |  |  |
Preferred shares | 4,004 |  |  | 4,004 |
Common shares | 20,026 |  |  | 20,091 |
Contributed surplus | 1,141 |  |  | 1,162 |
Accumulated other comprehensive income (loss) | 9 |  |  | (17 | )
Deficit | (5,192 | ) |  | (4,938 | )
Total equity attributable to BCE shareholders | 19,988 |  |  | 20,302 |
Non-controlling interest | 308 |  |  | 323 |
Total equity | 20,296 |  |  | 20,625 |
Total liabilities and equity | 56,648 |  |  | 55,802 |
Number of common shares outstanding (millions) | 898.0 |  |  | 901.0 |

BCE Supplementary Financial Information – First Quarter 2018 Page 12

BCE (2) (3)
Consolidated Cash Flow Data

(In millions of Canadian dollars, except where otherwise indicated) (unaudited) | Q1 2018 |  | Q1 2017 |  |  | $ change |
Net earnings | 709 |  | 688 |  |  | 21 |
Adjustments to reconcile net earnings to cash flows from operating activities |  |  |  |  |  |  |
Severance, acquisition and other costs | - |  | 84 |  |  | (84 | )
Depreciation and amortization | 992 |  | 909 |  |  | 83 |
Post-employment benefit plans cost | 90 |  | 68 |  |  | 22 |
Net interest expense | 238 |  | 230 |  |  | 8 |
Losses on investments | - |  | 12 |  |  | (12 | )
Income taxes | 235 |  | 250 |  |  | (15 | )
Contributions to post-employment benefit plans | (87 | ) | (88 | ) |  | 1 |
Payments under other post-employment benefit plans | (19 | ) | (19 | ) |  | - |
Severance and other costs paid | (35 | ) | (41 | ) |  | 6 |
Interest paid | (236 | ) | (223 | ) |  | (13 | )
Income taxes paid (net of refunds) | (284 | ) | (288 | ) |  | 4 |
Acquisition and other costs paid | (18 | ) | (83 | ) |  | 65 |
Net change in operating assets and liabilities | (89 | ) | (186 | ) |  | 97 |
Cash flows from operating activities | 1,496 |  | 1,313 |  |  | 183 |
Capital expenditures | (931 | ) | (852 | ) |  | (79 | )
Cash dividends paid on preferred shares | (33 | ) | (43 | ) |  | 10 |
Cash dividends paid by subsidiaries to non-controlling interest | (13 | ) | (12 | ) |  | (1 | )
Acquisition and other costs paid | 18 |  | 83 |  |  | (65 | )
Free cash flow | 537 |  | 489 |  |  | 48 |
Business acquisitions | (223 | ) | (1,635 | ) |  | 1,412 |
Acquisition and other costs paid | (18 | ) | (83 | ) |  | 65 |
Acquisition of spectrum licences | (36 | ) | - |  |  | (36 | )
Disposition of intangibles and other assets | 68 |  | - |  |  | 68 |
Other investing activities | (35 | ) | (9 | ) |  | (26 | )
(Decrease) increase in notes payable | (57 | ) | 308 |  |  | (365 | )
Increase in securitized trade receivables | - |  | 350 |  |  | (350 | )
Issue of long-term debt | 1,466 |  | 1,496 |  |  | (30 | )
Repayment of long-term debt | (173 | ) | (604 | ) |  | 431 |
Issue of common shares | 1 |  | 48 |  |  | (47 | )
Repurchase of common shares | (175 | ) | - |  |  | (175 | )
Repurchase of shares for settlement of share-based payments | (88 | ) | (96 | ) |  | 8 |
Cash dividends paid on common shares | (646 | ) | (594 | ) |  | (52 | )
Return of capital to non-controlling interest | (29 | ) | - |  |  | (29 | )
Other financing activities | (18 | ) | (13 | ) |  | (5 | )
| 37 |  | (832 | ) |  | 869 |
Net increase (decrease) in cash and cash equivalents | 574 |  | (343 | ) |  | 917 |
Cash and cash equivalents at beginning of period | 625 |  | 853 |  |  | (228 | )
Cash and cash equivalents at end of period | 1,199 |  | 510 |  |  | 689 |

BCE Supplementary Financial Information – First Quarter 2018 Page 13

BCE
Consolidated Cash Flow Data - Historical Trend

(In millions of Canadian dollars, except where otherwise indicated) (unaudited) | Q1 18 |  |  | TOTAL 2017 |  |  | Q4 17 |  | Q3 17 |  | Q2 17 |  | Q1 17 |
Net earnings | 709 |  |  | 3,050 |  |  | 698 |  | 850 |  | 814 |  | 688 |
Adjustments to reconcile net earnings to cash flows from operating activities |  |  |  |  |  |  |  |  |  |  |  |  |  |
Severance, acquisition and other costs | - |  |  | 190 |  |  | 47 |  | 23 |  | 36 |  | 84 |
Depreciation and amortization | 992 |  |  | 3,844 |  |  | 991 |  | 967 |  | 977 |  | 909 |
Post-employment benefit plans cost | 90 |  |  | 314 |  |  | 82 |  | 82 |  | 82 |  | 68 |
Net interest expense | 238 |  |  | 942 |  |  | 238 |  | 239 |  | 235 |  | 230 |
Losses (gains) on investments | - |  |  | 5 |  |  | (7 | ) | - |  | - |  | 12 |
Income taxes | 235 |  |  | 1,069 |  |  | 272 |  | 249 |  | 298 |  | 250 |
Contributions to post-employment benefit plans | (87 | ) |  | (413 | ) |  | (175 | ) | (64 | ) | (86 | ) | (88 | )
Payments under other post-employment benefit plans | (19 | ) |  | (77 | ) |  | (19 | ) | (20 | ) | (19 | ) | (19 | )
Severance and other costs paid | (35 | ) |  | (147 | ) |  | (36 | ) | (30 | ) | (40 | ) | (41 | )
Interest paid | (236 | ) |  | (965 | ) |  | (251 | ) | (242 | ) | (249 | ) | (223 | )
Income taxes paid (net of refunds) | (284 | ) |  | (675 | ) |  | (207 | ) | (66 | ) | (114 | ) | (288 | )
Acquisition and other costs paid | (18 | ) |  | (155 | ) |  | (27 | ) | (24 | ) | (21 | ) | (83 | )
Net change in operating assets and liabilities | (89 | ) |  | 376 |  |  | 52 |  | 269 |  | 241 |  | (186 | )
Cash flows from operating activities | 1,496 |  |  | 7,358 |  |  | 1,658 |  | 2,233 |  | 2,154 |  | 1,313 |
Capital expenditures | (931 | ) |  | (4,034 | ) |  | (1,100 | ) | (1,040 | ) | (1,042 | ) | (852 | )
Cash dividends paid on preferred shares | (33 | ) |  | (127 | ) |  | (33 | ) | (21 | ) | (30 | ) | (43 | )
Cash dividends paid by subsidiaries to non-controlling interest | (13 | ) |  | (34 | ) |  | - |  | (13 | ) | (9 | ) | (12 | )
Acquisition and other costs paid | 18 |  |  | 155 |  |  | 27 |  | 24 |  | 21 |  | 83 |
Voluntary defined benefit pension plan contribution | - |  |  | 100 |  |  | 100 |  | - |  | - |  | - |
Free cash flow | 537 |  |  | 3,418 |  |  | 652 |  | 1,183 |  | 1,094 |  | 489 |
Business acquisitions | (223 | ) |  | (1,649 | ) |  | (14 | ) | - |  | - |  | (1,635 | )
Acquisition and other costs paid | (18 | ) |  | (155 | ) |  | (27 | ) | (24 | ) | (21 | ) | (83 | )
Voluntary defined benefit pension plan contribution | - |  |  | (100 | ) |  | (100 | ) | - |  | - |  | - |
Acquisition of spectrum licences | (36 | ) |  | - |  |  | - |  | - |  | - |  | - |
Disposition of intangibles and other assets | 68 |  |  | 323 |  |  | - |  | - |  | 323 |  | - |
Other investing activities | (35 | ) |  | (77 | ) |  | (26 | ) | (37 | ) | (5 | ) | (9 | )
(Decrease) increase in notes payable | (57 | ) |  | 333 |  |  | 277 |  | (379 | ) | 127 |  | 308 |
(Decrease) increase in securitized trade receivables | - |  |  | (10 | ) |  | - |  | - |  | (360 | ) | 350 |
Issue of long-term debt | 1,466 |  |  | 3,011 |  |  | - |  | 1,515 |  | - |  | 1,496 |
Repayment of long-term debt | (173 | ) |  | (2,653 | ) |  | (1,435 | ) | (142 | ) | (472 | ) | (604 | )
Issue of common shares | 1 |  |  | 117 |  |  | 24 |  | 4 |  | 41 |  | 48 |
Repurchase of common shares | (175 | ) |  | - |  |  | - |  | - |  | - |  | - |
Repurchase of shares for settlement of share-based payments | (88 | ) |  | (224 | ) |  | (45 | ) | (38 | ) | (45 | ) | (96 | )
Cash dividends paid on common shares | (646 | ) |  | (2,512 | ) |  | (646 | ) | (646 | ) | (626 | ) | (594 | )
Return of capital to non-controlling interest | (29 | ) |  | - |  |  | - |  | - |  | - |  | - |
Other financing activities | (18 | ) |  | (50 | ) |  | (14 | ) | (14 | ) | (9 | ) | (13 | )
| 37 |  |  | (3,646 | ) |  | (2,006 | ) | 239 |  | (1,047 | ) | (832 | )
Net increase (decrease) in cash and cash equivalents | 574 |  |  | (228 | ) |  | (1,354 | ) | 1,422 |  | 47 |  | (343 | )
Cash and cash equivalents at beginning of period | 625 |  |  | 853 |  |  | 1,979 |  | 557 |  | 510 |  | 853 |
Cash and cash equivalents at end of period | 1,199 |  |  | 625 |  |  | 625 |  | 1,979 |  | 557 |  | 510 |

BCE Supplementary Financial Information – First Quarter 2018 Page 14

Accompanying Notes

(1) | We report our results in three segments: Bell Wireless, Bell Wireline and Bell Media. Our reporting structure reflects how we manage our business and how we classify our results for planning and measuring performance. Throughout this report, we, us, our, the company and BCE mean, as the context may require, either BCE Inc. or, collectively, BCE Inc., Bell Canada, their subsidiaries, joint arrangements and associates. Bell means, as the context may require, either Bell Canada or, collectively, Bell Canada, its subsidiaries, joint arrangements and associates. MTS means, as the context may require, until March 17, 2017, either Manitoba Telecom Services Inc. or, collectively, Manitoba Telecom Services Inc. and its subsidiaries and Bell MTS means, from March 17, 2017, the combined operations of MTS and Bell Canada in Manitoba.
(2) | As required by International Financial Reporting Standards (IFRS), effective January 1, 2018, we have adopted IFRS 15, Revenue from Contracts with Customers, retrospectively to each period in 2017 previously reported. For further details see note 3, Adoption of IFRS 15, of the Q1 2018 financial statements.
(3) | On March 17, 2017, BCE acquired all of the issued and outstanding common shares of MTS. Bell MTS offers wireless, Internet, television (TV), phone services, security systems and information solutions including unified cloud and managed services to residential and business customers in Manitoba. The results from the acquired MTS operations are included in our Bell Wireline and Wireless segments. For further details see note 3 and note 4, Business acquisitions and dispositions, of the 2017 annual financial statements and the Q1 2018 financial statements, respectively.
(4) | Non-GAAP Financial Measures In Q1 2018, we updated our definition of adjusted net earnings and adjusted EPS to exclude net mark-to-market losses (gains) on derivatives used to economically hedge equity settled share-based compensation plans as they may affect the comparability of our financial results and could potentially distort the analysis of trends in business performance. Adjusted net earnings and adjusted EPS for 2017 have also been updated for comparability purposes. Adjusted EBITDA and adjusted EBITDA margin The terms adjusted EBITDA and adjusted EBITDA margin 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 EBITDA as operating revenues less operating costs (including post-employment benefit plans service cost) as shown in BCE’s consolidated income statements. Adjusted EBITDA for BCE’s segments is the same as segment profit as reported in BCE’s consolidated financial statements. 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.

BCE Supplementary Financial Information - First Quarter 2017 Page 15

| 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 mark-to-market losses (gains) on derivatives used to economically hedge equity settled share-based compensation plans, net losses (gains) on investments, early debt redemption costs and impairment charges. 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 mark-to-market losses (gains) on derivatives used to economically hedge equity settled share-based compensation plans, net losses (gains) on investments, early debt redemption costs and impairment charges, net of tax and non-controlling interest (NCI). 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, as reconciled in this document. 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 issuers. We define free cash flow as cash flows from operating activities, excluding acquisition and other costs paid (which include significant litigation costs) and voluntary pension funding, less capital expenditures, preferred share dividends and dividends paid by subsidiaries to NCI. We exclude acquisition and other costs paid and voluntary pension funding 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. We consider free cash flow to be an important indicator of the financial strength and performance of our businesses because it shows 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 and to evaluate the financial strength and performance of our businesses. The most comparable IFRS financial measure is cash flows from operating activities, as reconciled in this document. 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, as shown in BCE’s consolidated statements of financial position. 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.

BCE Supplementary Financial Information - First Quarter 2017 Page 16

| Net debt leverage ratio The net debt leverage ratio does not have any standardized meaning under IFRS. Therefore, it is unlikely to be comparable to similar measures presented by other issuers. We use, and believe that certain investors and analysts use, the net debt leverage ratio as a measure of financial leverage. The net debt leverage ratio represents net debt divided by adjusted EBITDA. For the purposes of calculating our net debt leverage ratio, adjusted EBITDA is twelve-month trailing adjusted EBITDA. Adjusted EBITDA to net interest expense ratio The ratio of adjusted EBITDA to net interest expense does not have any standardized meaning under IFRS. Therefore, it is unlikely to be comparable to similar measures presented by other issuers. We use, and believe that certain investors and analysts use, the adjusted EBITDA to net interest expense ratio as a measure of financial health of the company. The adjusted EBITDA to net interest expense ratio represents adjusted EBITDA divided by net interest expense. For the purposes of calculating our adjusted EBITDA to net interest expense ratio, adjusted EBITDA is twelve-month trailing adjusted EBITDA. Net interest expense is twelve-month trailing net interest expense as shown in our statements of cash flows, plus 50% of declared preferred share dividends as shown in our income statements.
(5) | Key performance indicators (KPIs) In addition to the non-GAAP financial measures described previously, 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. Average revenue per user (ARPU) or subscriber is a measure used to track our recurring revenue streams, which has been updated to reflect the adoption of IFRS 15. Wireless blended ARPU is calculated by dividing certain service revenues by the average subscriber base for the specified period and is expressed as a dollar unit per month. Average billing per user (ABPU) or subscriber approximates the average amount billed to customers on a monthly basis, which is used to track our recurring billing streams. This measure is the same as blended ARPU prior to the adoption of IFRS 15. Wireless blended ABPU is calculated by dividing certain customer billings by the average subscriber base for the specified period and is expressed as a dollar unit per month. Capital intensity is capital expenditures divided by operating revenues. Churn is the rate at which existing subscribers cancel their services. It is a measure of our ability to retain our customers. Wireless churn is calculated by dividing the number of deactivations during a given period by the average number of subscribers in the base for the specified period and is expressed as a percentage per month. Wireless subscriber unit is comprised of an active revenue-generating unit (e.g. mobile device, tablet or wireless Internet products), with a unique identifier (typically International Mobile Equipment Identity (IMEI) number), that has access to our wireless networks. We report wireless subscriber units in two categories: postpaid and prepaid. Prepaid subscriber units are considered active for a period of 120 days following the expiry of the subscriber’s prepaid balance. Wireline subscriber unit consists of an active revenue-generating unit with access to our services, including Internet, satellite TV, IPTV, and/or NAS. A subscriber is included in our subscriber base when the service has been installed and is operational at the customer premise and a billing relationship has been established. Internet, IPTV and satellite TV subscribers have access to stand-alone services, and are primarily represented by a dwelling unit NAS subscribers are based on a line count and are represented by a unique telephone number

BCE Supplementary Financial Information - First Quarter 2017 Page 17