BCE Inc. Supplementary Financial Information

EX-99.2 3 supp_q418.htm SUPPLEMENTARY FINANCIAL INFORMATION BCE Inc. Supplementary Financial Information – Fourth Quarter 2018

Exhibit 99.2

BCE ^{(1) (2) (3)}
Consolidated Operational Data

(In millions of Canadian dollars, except share amounts) (unaudited)		Q4 2018			Q4 2017			$ change		% change			TOTAL 2018			TOTAL 2017			$ change		% change
Operating revenues
Service		5,231			5,152			79		1.5	%		20,441			20,095			346		1.7	%
Product		984			884			100		11.3	%		3,027			2,662			365		13.7	%
Total operating revenues		6,215			6,036			179		3.0	%		23,468			22,757			711		3.1	%
Operating costs ^(A)		(3,756	)		(3,643	)		(113	)	(3.1	%)		(13,667	)		(13,233	)		(434	)	(3.3	%)
Post-employment benefit plans service cost		(65	)		(64	)		(1	)	(1.6	%)		(266	)		(242	)		(24	)	(9.9	%)
Adjusted EBITDA ⁽⁴⁾		2,394			2,329			65		2.8	%		9,535			9,282			253		2.7	%
Adjusted EBITDA margin ⁽⁴⁾		*38.5*	%		38.6	%				(0.1	) pts		*40.6*	%		40.8	%				(0.2	) pts
Severance, acquisition and other costs		(58	)		(47	)		(11	)	(23.4	%)		(136	)		(190	)		54		28.4	%
Depreciation		(799	)		(783	)		(16	)	(2.0	%)		(3,145	)		(3,034	)		(111	)	(3.7	%)
Amortization		(216	)		(208	)		(8	)	(3.8	%)		(869	)		(810	)		(59	)	(7.3	%)
Finance costs
Interest expense		(259	)		(241	)		(18	)	(7.5	%)		(1,000	)		(955	)		(45	)	(4.7	%)
Interest on post-employment benefit obligations		(18	)		(18	)		-		-			(69	)		(72	)		3		4.2	%
Other expense		(158	)		(62	)		(96	)	n.m.			(348	)		(102	)		(246	)	n.m.
Income taxes		(244	)		(272	)		28		10.3	%		(995	)		(1,069	)		74		6.9	%
Net earnings		642			698			(56	)	(8.0	%)		2,973			3,050			(77	)	(2.5	%)
Net earnings attributable to:
Common shareholders		606			656			(50	)	(7.6	%)		2,785			2,866			(81	)	(2.8	%)
Preferred shareholders		37			34			3		8.8	%		144			128			16		12.5	%
Non-controlling interest		(1	)		8			(9	)	n.m.			44			56			(12	)	(21.4	%)
Net earnings		642			698			(56	)	(8.0	%)		2,973			3,050			(77	)	(2.5	%)
Net earnings per common share - basic	$	0.68		$	0.72			(0.04	)	(5.6	%)	$	3.10		$	3.20		$	(0.10	)	(3.1	%)
Net earnings per common share - diluted	$	0.68		$	0.72			(0.04	)	(5.6	%)	$	3.10		$	3.20		$	(0.10	)	(3.1	%)
Dividends per common share	$	0.7550		$	0.7175		$	0.0375		5.2	%	$	3.0200		$	2.8700		$	0.1500		5.2	%
Average number of common shares outstanding - basic (millions)		898.1			900.6								898.6			894.3
Average number of common shares outstanding - diluted (millions)		898.4			901.4								898.9			894.9
Number of common shares outstanding (millions)		898.2			901.0								898.2			901.0
Adjusted net earnings and EPS
Net earnings attributable to common shareholders		606			656			(50	)	(7.6	%)		2,785			2,866			(81	)	(2.8	%)
Severance, acquisition and other costs		44			34			10		29.4	%		100			143			(43	)	(30.1	%)
Net mark-to-market (gains) losses on derivatives used to economically hedge equity settled share-based compensation plans		(25	)		(29	)		4		13.8	%		58			(55	)		113		n.m.
Net losses on investments		27			15			12		80.0	%		47			29			18		62.1	%
Early debt redemption costs		-			-			-		-			15			15			-		-
Impairment charges		142			60			82		n.m.			146			60			86		n.m.
Adjusted net earnings ⁽⁴⁾		794			736			58		7.9	%		3,151			3,058			93		3.0	%
Impact on net earnings per share	$	0.21		$	0.10		$	0.11		n.m.		$	0.41		$	0.22		$	0.19		86.4	%
Adjusted EPS ⁽⁴⁾	$	0.89		$	0.82		$	0.07		8.5	%	$	3.51		$	3.42		$	0.09		2.6	%

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

BCE Supplementary Financial Information - Fourth Quarter 2018 Page 2

BCE
Consolidated Operational Data - Historical Trend

(In millions of Canadian dollars, except share amounts) (unaudited)		TOTAL 2018			Q4 18			Q3 18			Q2 18			Q1 18			TOTAL 2017			Q4 17			Q3 17			Q2 17			Q1 17
Operating revenues
Service		20,441			5,231			5,117			5,129			4,964			20,095			5,152			5,054			5,078			4,811
Product		3,027			984			760			657			626			2,662			884			643			610			525
Total operating revenues		23,468			6,215			5,877			5,786			5,590			22,757			6,036			5,697			5,688			5,336
Operating costs ^(A)		(13,667	)		(3,756	)		(3,355	)		(3,293	)		(3,263	)		(13,233	)		(3,643	)		(3,228	)		(3,242	)		(3,120	)
Post-employment benefit plans service cost		(266	)		(65	)		(65	)		(63	)		(73	)		(242	)		(64	)		(64	)		(64	)		(50	)
Adjusted EBITDA		9,535			2,394			2,457			2,430			2,254			9,282			2,329			2,405			2,382			2,166
*Adjusted EBITDA margin*		*40.6*	%		*38.5*	%		41.8	%		42.0	%		40.3	%		40.8	%		38.6	%		42.2	%		41.9	%		40.6	%
Severance, acquisition and other costs		(136	)		(58	)		(54	)		(24	)		-			(190	)		(47	)		(23	)		(36	)		(84	)
Depreciation		(3,145	)		(799	)		(779	)		(787	)		(780	)		(3,034	)		(783	)		(760	)		(767	)		(724	)
Amortization		(869	)		(216	)		(220	)		(221	)		(212	)		(810	)		(208	)		(207	)		(210	)		(185	)
Finance costs
Interest expense		(1,000	)		(259	)		(255	)		(246	)		(240	)		(955	)		(241	)		(242	)		(238	)		(234	)
Interest on post-employment benefit obligations		(69	)		(18	)		(17	)		(17	)		(17	)		(72	)		(18	)		(18	)		(18	)		(18	)
Other (expense) income		(348	)		(158	)		(41	)		(88	)		(61	)		(102	)		(62	)		(56	)		(1	)		17
Income taxes		(995	)		(244	)		(224	)		(292	)		(235	)		(1,069	)		(272	)		(249	)		(298	)		(250	)
Net earnings		2,973			642			867			755			709			3,050			698			850			814			688
Net earnings attributable to:
Common shareholders		2,785			606			814			704			661			2,866			656			803			765			642
Preferred shareholders		144			37			36			35			36			128			34			31			32			31
Non-controlling interest		44			(1	)		17			16			12			56			8			16			17			15
Net earnings		2,973			642			867			755			709			3,050			698			850			814			688
Net earnings per common share - basic	$	3.10		$	0.68		$	0.90		$	0.79		$	0.73		$	3.20		$	0.72		$	0.90		$	0.85		$	0.73
Net earnings per common share - diluted	$	3.10		$	0.68		$	0.90		$	0.79		$	0.73		$	3.20		$	0.72		$	0.90		$	0.85		$	0.73
Dividends per common share	$	3.0200		$	0.7550		$	0.7550		$	0.7550		$	0.7550		$	2.8700		$	0.7175		$	0.7175		$	0.7175		$	0.7175
Average number of common shares outstanding - basic (millions)		898.6			898.1			898.0			898.0			900.2			894.3			900.6			900.4			900.1			875.7
Average number of common shares outstanding - diluted (millions)		898.9			898.4			898.3			898.3			900.6			894.9			901.4			901.1			901.0			876.6
Number of common shares outstanding (millions)		898.2			898.2			898.0			898.0			898.0			901.0			901.0			900.4			900.4			899.5
Adjusted net earnings and EPS
Net earnings attributable to common shareholders		2,785			606			814			704			661			2,866			656			803			765			642
Severance, acquisition and other costs		100			44			39			18			(1	)		143			34			17			27			65
Net mark-to-market losses (gains) on derivatives used to economically hedge equity settled share-based compensation plans		58			(25	)		5			22			56			(55	)		(29	)		(8	)		-			(18	)
Net losses on investments		47			27			-			20			-			29			15			-			-			14
Early debt redemption costs		15			-			2			13			-			15			-			12			3			-
Impairment charges		146			142			1			-			3			60			60			-			-			-
Adjusted net earnings		3,151			794			861			777			719			3,058			736			824			795			703
Impact on net earnings per share	$	0.41		$	0.21		$	0.06		$	0.07		$	0.07		$	0.22		$	0.10		$	0.01		$	0.04		$	0.07
Adjusted EPS	$	3.51		$	0.89		$	0.96		$	0.86		$	0.80		$	3.42		$	0.82		$	0.91		$	0.89		$	0.80

^(A)

Excludes post-employment benefit plans service cost

BCE Supplementary Financial Information - Fourth Quarter 2018 Page 3

BCE
Segmented Data

(In millions of Canadian dollars, except where otherwise indicated) (unaudited)	Q4 2018		Q4 2017		$ change		% change		TOTAL 2018		TOTAL 2017		$ change		% change

Operating revenues
Bell Wireless	2,248		2,149		99		4.6	%	8,422		7,926		496		6.3	%
Bell Wireline	3,296		3,218		78		2.4	%	12,662		12,400		262		2.1	%
Bell Media	850		834		16		1.9	%	3,121		3,104		17		0.5	%
Inter-segment eliminations	(179	)	(165	)	(14	)	(8.5	%)	(737	)	(673	)	(64	)	(9.5	%)
Total	6,215		6,036		179		3.0	%	23,468		22,757		711		3.1	%

Operating costs
Bell Wireless	(1,359	)	(1,303	)	(56	)	(4.3	%)	(4,856	)	(4,550	)	(306	)	(6.7	%)
Bell Wireline	(1,967	)	(1,906	)	(61	)	(3.2	%)	(7,386	)	(7,210	)	(176	)	(2.4	%)
Bell Media	(674	)	(663	)	(11	)	(1.7	%)	(2,428	)	(2,388	)	(40	)	(1.7	%)
Inter-segment eliminations	179		165		14		8.5	%	737		673		64		9.5	%
Total	(3,821	)	(3,707	)	(114	)	(3.1	%)	(13,933	)	(13,475	)	(458	)	(3.4	%)

Adjusted EBITDA
Bell Wireless	889		846		43		5.1	%	3,566		3,376		190		5.6	%
Margin	*39.5*	%	39.4	%			0.1	pts	*42.3*	%	42.6	%			(0.3	) pts
Bell Wireline	1,329		1,312		17		1.3	%	5,276		5,190		86		1.7	%
Margin	*40.3*	%	40.8	%			(0.5	) pts	*41.7*	%	41.9	%			(0.2	) pts
Bell Media	176		171		5		2.9	%	693		716		(23	)	(3.2	%)
Margin	*20.7*	%	20.5	%			0.2	pts	*22.2*	%	23.1	%			(0.9	) pts
Total	2,394		2,329		65		2.8	%	9,535		9,282		253		2.7	%
Margin	*38.5*	%	38.6	%			(0.1	) pts	*40.6*	%	40.8	%			(0.2	) pts

Capital expenditures
Bell Wireless	132		218		86		39.4	%	656		731		75		10.3	%
Capital intensity ⁽⁵⁾	*5.9*	%	10.1	%			4.2	pts	*7.8*	%	9.2	%			1.4	pts
Bell Wireline	810		845		35		4.1	%	3,201		3,174		(27	)	(0.9	%)
Capital intensity	*24.6*	%	26.3	%			1.7	pts	*25.3*	%	25.6	%			0.3	pts
Bell Media	32		37		5		13.5	%	114		129		15		11.6	%
Capital intensity	*3.8*	%	4.4	%			0.6	pts	*3.7*	%	4.2	%			0.5	pts
Total	974		1,100		126		11.5	%	3,971		4,034		63		1.6	%
Capital intensity	*15.7*	%	18.2	%			2.5	pts	*16.9*	%	17.7	%			0.8	pts

BCE Supplementary Financial Information - Fourth Quarter 2018 Page 4

BCE
Segmented Data - Historical Trend

(In millions of Canadian dollars, except where otherwise indicated) (unaudited)	TOTAL 2018		Q4 18		Q3 18		Q2 18		Q1 18		TOTAL 2017		Q4 17		Q3 17		Q2 17		Q1 17

Operating revenues
Bell Wireless	8,422		2,248		2,182		2,046		1,946		7,926		2,149		2,061		1,949		1,767
Bell Wireline	12,662		3,296		3,147		3,135		3,084		12,400		3,218		3,088		3,117		2,977
Bell Media	3,121		850		731		791		749		3,104		834		723		796		751
Inter-segment eliminations	(737	)	(179	)	(183	)	(186	)	(189	)	(673	)	(165	)	(175	)	(174	)	(159	)
Total	23,468		6,215		5,877		5,786		5,590		22,757		6,036		5,697		5,688		5,336

Operating costs
Bell Wireless	(4,856	)	(1,359	)	(1,231	)	(1,142	)	(1,124	)	(4,550	)	(1,303	)	(1,151	)	(1,098	)	(998	)
Bell Wireline	(7,386	)	(1,967	)	(1,823	)	(1,814	)	(1,782	)	(7,210	)	(1,906	)	(1,780	)	(1,810	)	(1,714	)
Bell Media	(2,428	)	(674	)	(549	)	(586	)	(619	)	(2,388	)	(663	)	(536	)	(572	)	(617	)
Inter-segment eliminations	737		179		183		186		189		673		165		175		174		159
Total	(13,933	)	(3,821	)	(3,420	)	(3,356	)	(3,336	)	(13,475	)	(3,707	)	(3,292	)	(3,306	)	(3,170	)

Adjusted EBITDA
Bell Wireless	3,566		889		951		904		822		3,376		846		910		851		769
Margin	*42.3*	%	*39.5*	%	43.6	%	44.2	%	42.2	%	42.6	%	39.4	%	44.2	%	43.7	%	43.5	%
Bell Wireline	5,276		1,329		1,324		1,321		1,302		5,190		1,312		1,308		1,307		1,263
Margin	*41.7*	%	*40.3*	%	42.1	%	42.1	%	42.2	%	41.9	%	40.8	%	42.4	%	41.9	%	42.4	%
Bell Media	693		176		182		205		130		716		171		187		224		134
Margin	*22.2*	%	*20.7*	%	24.9	%	25.9	%	17.4	%	23.1	%	20.5	%	25.9	%	28.1	%	17.8	%
Total	9,535		2,394		2,457		2,430		2,254		9,282		2,329		2,405		2,382		2,166
Margin	*40.6*	%	*38.5*	%	41.8	%	42.0	%	40.3	%	40.8	%	38.6	%	42.2	%	41.9	%	40.6	%

Capital expenditures
Bell Wireless	656		132		181		179		164		731		218		186		191		136
Capital intensity	*7.8*	%	*5.9*	%	8.3	%	8.7	%	8.4	%	9.2	%	10.1	%	9.0	%	9.8	%	7.7	%
Bell Wireline	3,201		810		799		845		747		3,174		845		820		818		691
Capital intensity	*25.3*	%	*24.6*	%	25.4	%	27.0	%	24.2	%	25.6	%	26.3	%	26.6	%	26.2	%	23.2	%
Bell Media	114		32		30		32		20		129		37		34		33		25
Capital intensity	*3.7*	%	*3.8*	%	4.1	%	4.0	%	2.7	%	4.2	%	4.4	%	4.7	%	4.1	%	3.3	%
Total	3,971		974		1,010		1,056		931		4,034		1,100		1,040		1,042		852
Capital intensity	*16.9*	%	*15.7*	%	17.2	%	18.3	%	16.7	%	17.7	%	18.2	%	18.3	%	18.3	%	16.0	%

BCE Supplementary Financial Information - Fourth Quarter 2018 Page 5

BCE
Segmented Data - IFRS 15 Adoption Impacts ⁽²⁾

	TOTAL 2017						Q4 17						Q3 17						Q2 17						Q1 17
(In millions of Canadian dollars, except where otherwise indicated) (unaudited)	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 - Fourth Quarter 2018 Page 6

Bell Wireless ^{(1) (2) (3)}

(In millions of Canadian dollars, except where otherwise indicated) (unaudited)	Q4 2018		Q4 2017		% change		TOTAL 2018		TOTAL 2017		% change
Bell Wireless
Operating revenues
External service revenues	1,578		1,545		2.1	%	6,258		6,048		3.5	%
Inter-segment service revenues	12		11		9.1	%	48		42		14.3	%
Total operating service revenues	1,590		1,556		2.2	%	6,306		6,090		3.5	%
External product revenues	658		593		11.0	%	2,114		1,833		15.3	%
Inter-segment product revenues	-		-		-		2		3		(33.3	%)
Total operating product revenues	658		593		11.0	%	2,116		1,836		15.3	%
Total external revenues	2,236		2,138		4.6	%	8,372		7,881		6.2	%
Total operating revenues	2,248		2,149		4.6	%	8,422		7,926		6.3	%
Operating costs	(1,359	)	(1,303	)	(4.3	%)	(4,856	)	(4,550	)	(6.7	%)
Adjusted EBITDA	889		846		5.1	%	3,566		3,376		5.6	%
Adjusted EBITDA margin (Total operating revenues)	*39.5*	%	39.4	%	0.1	pts	*42.3*	%	42.6	%	(0.3	) pts
Capital expenditures	132		218		39.4	%	656		731		10.3	%
Capital intensity	*5.9*	%	10.1	%	4.2	pts	*7.8*	%	9.2	%	1.4	pts
Wireless gross activations	546,203		568,555		(3.9	%)	1,954,792		1,780,478		9.8	%
Postpaid	447,590		505,432		(11.4	%)	1,615,764		1,532,425		5.4	%
Prepaid	98,613		63,123		56.2	%	339,028		248,053		36.7	%
Wireless net activations (losses)	143,114		158,514		(9.7	%)	479,811		333,084		44.1	%
Postpaid	121,780		175,204		(30.5	%)	447,682		416,779		7.4	%
Prepaid	21,334		(16,690	)	227.8	%	32,129		(83,695	)	138.4	%
Wireless subscribers end of period (EOP)^(A)(B)	9,610,482		9,166,787		4.8	%	9,610,482		9,166,787		4.8	%
Postpaid^(A)(B)	8,830,216		8,418,650		4.9	%	8,830,216		8,418,650		4.9	%
Prepaid	780,266		748,137		4.3	%	780,266		748,137		4.3	%
Blended average revenue per user^(5)(C)(ARPU)($/month)	54.42		55.77		(2.4	%)	55.22		55.88		(1.2	%)
Blended average billing per user^(5)(C)(ABPU)($/month)	67.46		68.27		(1.2	%)	67.76		67.77		-
Churn (%) ⁽⁵⁾(average per month)	1.41	%	1.51	%	0.10	pts	1.32	%	1.36	%	0.04	pts
Postpaid	1.26	%	1.35	%	0.09	pts	1.16	%	1.19	%	0.03	pts
Prepaid	3.18	%	3.25	%	0.07	pts	3.17	%	3.17	%	-

^(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)	At the beginning of Q4 2018, we adjusted our postpaid wireless subscriber base to remove 20,000 subscribers that we divested to Xplornet Communications Inc. (Xplornet) as a result of BCE's acquisition of Manitoba Telecom Services Inc. (MTS).
^(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 - Fourth Quarter 2018 Page 7

Bell Wireless - Historical Trend

(In millions of Canadian dollars, except where otherwise indicated) (unaudited)	TOTAL 2018		Q4 18		Q3 18		Q2 18		Q1 18		TOTAL 2017		Q4 17		Q3 17		Q2 17		Q1 17
Bell Wireless
Operating revenues
External service revenues	6,258		1,578		1,618		1,562		1,500		6,048		1,545		1,580		1,508		1,415
Inter-segment service revenues	48		12		12		12		12		42		11		10		11		10
Total operating service revenues	6,306		1,590		1,630		1,574		1,512		6,090		1,556		1,590		1,519		1,425
External product revenues	2,114		658		552		470		434		1,833		593		469		430		341
Inter-segment product revenues	2		-		-		2		-		3		-		2		-		1
Total operating product revenues	2,116		658		552		472		434		1,836		593		471		430		342
Total external revenues	8,372		2,236		2,170		2,032		1,934		7,881		2,138		2,049		1,938		1,756
Total operating revenues	8,422		2,248		2,182		2,046		1,946		7,926		2,149		2,061		1,949		1,767
Operating costs	(4,856	)	(1,359	)	(1,231	)	(1,142	)	(1,124	)	(4,550	)	(1,303	)	(1,151	)	(1,098	)	(998	)
Adjusted EBITDA	3,566		889		951		904		822		3,376		846		910		851		769
Adjusted EBITDA margin (Total operating revenues)	*42.3*	%	*39.5*	%	43.6	%	44.2	%	42.2	%	42.6	%	39.4	%	44.2	%	43.7	%	43.5	%
Capital expenditures	656		132		181		179		164		731		218		186		191		136
Capital intensity	*7.8*	%	*5.9*	%	8.3	%	8.7	%	8.4	%	9.2	%	10.1	%	9.0	%	9.8	%	7.7	%
Wireless gross activations	1,954,792		546,203		535,647		468,152		404,790		1,780,478		568,555		460,053		403,418		348,452
Postpaid	1,615,764		447,590		426,719		394,136		347,319		1,532,425		505,432		390,985		339,392		296,616
Prepaid	339,028		98,613		108,928		74,016		57,471		248,053		63,123		69,068		64,026		51,836
Wireless net activations (losses)	479,811		143,114		177,834		114,486		44,377		333,084		158,514		106,982		66,916		672
Postpaid	447,682		121,780		135,323		122,092		68,487		416,779		175,204		117,182		88,611		35,782
Prepaid	32,129		21,334		42,511		(7,606	)	(24,110	)	(83,695	)	(16,690	)	(10,200	)	(21,695	)	(35,110	)
Wireless subscribers EOP^(A)(B)(C)	9,610,482		9,610,482		9,487,368		9,309,534		9,195,048		9,166,787		9,166,787		9,008,273		8,901,291		8,946,476
Postpaid^(A)(B)(C)	8,830,216		8,830,216		8,728,436		8,593,113		8,471,021		8,418,650		8,418,650		8,243,446		8,126,264		8,144,936
Prepaid	780,266		780,266		758,932		716,421		724,027		748,137		748,137		764,827		775,027		801,540
Blended ARPU^(D) ($/month)	55.22		54.42		56.67		55.53		54.28		55.88		55.77		57.77		55.61		54.31
Blended ABPU^(D) ($/month)	67.76		67.46		69.28		67.71		66.56		67.77		68.27		69.78		67.28		65.66
Churn (%)(average per month)	1.32	%	1.41	%	1.27	%	1.28	%	1.31	%	1.36	%	1.51	%	1.32	%	1.27	%	1.36	%
Postpaid	1.16	%	1.26	%	1.14	%	1.10	%	1.13	%	1.19	%	1.35	%	1.16	%	1.08	%	1.17	%
Prepaid	3.17	%	3.18	%	2.76	%	3.34	%	3.40	%	3.17	%	3.25	%	2.95	%	3.19	%	3.29	%

^(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. 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)	At the beginning of Q4 2018, we adjusted our postpaid wireless subscriber base to remove 20,000 subscribers that we divested to Xplornet as a result of BCE's acquisition of MTS.
^(D)	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 - Fourth Quarter 2018 Page 8

Bell Wireline ^{(1) (2) (3)}

(In millions of Canadian dollars, except where otherwise indicated) (unaudited)	Q4 2018		Q4 2017		% change		TOTAL 2018		TOTAL 2017		% change
Bell Wireline
Operating revenues
Data	1,910		1,844		3.6	%	7,466		7,192		3.8	%
Voice	936		973		(3.8	%)	3,793		3,968		(4.4	%)
Other services	60		60		-		247		211		17.1	%
Total external service revenues	2,906		2,877		1.0	%	11,506		11,371		1.2	%
Inter-segment service revenues	64		50		28.0	%	241		199		21.1	%
Total operating service revenues	2,970		2,927		1.5	%	11,747		11,570		1.5	%
Data	153		137		11.7	%	466		410		13.7	%
Equipment and other	173		154		12.3	%	447		419		6.7	%
Total external product revenues	326		291		12.0	%	913		829		10.1	%
Inter-segment product revenues	-		-		-		2		1		100.0	%
Total operating product revenues	326		291		12.0	%	915		830		10.2	%
Total external revenues	3,232		3,168		2.0	%	12,419		12,200		1.8	%
Total operating revenues	3,296		3,218		2.4	%	12,662		12,400		2.1	%
Operating costs	(1,967	)	(1,906	)	(3.2	%)	(7,386	)	(7,210	)	(2.4	%)
Adjusted EBITDA	1,329		1,312		1.3	%	5,276		5,190		1.7	%
Adjusted EBITDA margin	*40.3*	%	40.8	%	(0.5	) pts	*41.7*	%	41.9	%	(0.2	) pts
Capital expenditures	810		845		4.1	%	3,201		3,174		(0.9	%)
Capital intensity	*24.6*	%	26.3	%	1.7	pts	*25.3*	%	25.6	%	0.3	pts
High-speed Internet
High-speed Internet net activations	29,627		27,040		9.6	%	107,839		87,860		22.7	%
High-speed Internet subscribers EOP^(A)(B)	3,933,931		3,790,141		3.8	%	3,933,931		3,790,141		3.8	%
TV
Net subscriber activations (losses)	9,253		6,546		41.4	%	6,182		(20,716	)	129.8	%
Internet protocol television (IPTV)	36,473		32,484		12.3	%	110,790		107,712		2.9	%
Total subscribers EOP^(B)	2,853,081		2,832,300		0.7	%	2,853,081		2,832,300		0.7	%
IPTV^(B)	1,675,706		1,550,317		8.1	%	1,675,706		1,550,317		8.1	%
Network access services (NAS)
Residential NAS^(B)	2,990,188		3,231,308		(7.5	%)	2,990,188		3,231,308		(7.5	%)
Residential NAS net losses	(61,442	)	(44,281	)	(38.8	%)	(264,561	)	(242,094	)	(9.3	%)

^(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 Q1 2018.

BCE Supplementary Financial Information - Fourth Quarter 2018 Page 9

Bell Wireline - Historical Trend

(In millions of Canadian dollars, except where otherwise indicated) (unaudited)	TOTAL 2018		Q4 18		Q3 18		Q2 18		Q1 18		TOTAL 2017		Q4 17		Q3 17		Q2 17		Q1 17
Bell Wireline
Operating revenues
Data	7,466		1,910		1,867		1,869		1,820		7,192		1,844		1,817		1,812		1,719
Voice	3,793		936		950		957		950		3,968		973		994		1,020		981
Other services	247		60		60		64		63		211		60		52		55		44
Total external service revenues	11,506		2,906		2,877		2,890		2,833		11,371		2,877		2,863		2,887		2,744
Inter-segment service revenues	241		64		61		57		59		199		50		51		49		49
Total operating service revenues	11,747		2,970		2,938		2,947		2,892		11,570		2,927		2,914		2,936		2,793
Data	466		153		111		98		104		410		137		79		95		99
Equipment and other	447		173		97		89		88		419		154		95		85		85
Total external product revenues	913		326		208		187		192		829		291		174		180		184
Inter-segment product revenues	2		-		1		1		-		1		-		-		1		-
Total operating product revenues	915		326		209		188		192		830		291		174		181		184
Total external revenues	12,419		3,232		3,085		3,077		3,025		12,200		3,168		3,037		3,067		2,928
Total operating revenues	12,662		3,296		3,147		3,135		3,084		12,400		3,218		3,088		3,117		2,977
Operating costs	(7,386	)	(1,967	)	(1,823	)	(1,814	)	(1,782	)	(7,210	)	(1,906	)	(1,780	)	(1,810	)	(1,714	)
Adjusted EBITDA	5,276		1,329		1,324		1,321		1,302		5,190		1,312		1,308		1,307		1,263
Adjusted EBITDA margin	*41.7*	%	*40.3*	%	42.1	%	42.1	%	42.2	%	41.9	%	40.8	%	42.4	%	41.9	%	42.4	%
Capital expenditures	3,201		810		799		845		747		3,174		845		820		818		691
Capital intensity	*25.3*	%	*24.6*	%	25.4	%	27.0	%	24.2	%	25.6	%	26.3	%	26.6	%	26.2	%	23.2	%
High-speed Internet
High-speed Internet net activations	107,839		29,627		47,749		10,816		19,647		87,860		27,040		44,424		1,407		14,989
High-speed Internet subscribers EOP^(A)(B)	3,933,931		3,933,931		3,904,304		3,856,555		3,845,739		3,790,141		3,790,141		3,763,101		3,718,677		3,717,270
TV
Net subscriber activations (losses)	6,182		9,253		8,601		809		(12,481	)	(20,716	)	6,546		1,738		(13,337	)	(15,663	)
IPTV	110,790		36,473		40,091		20,653		13,573		107,712		32,484		36,399		16,427		22,402
Total subscribers EOP^(B)	2,853,081		2,853,081		2,843,828		2,835,227		2,834,418		2,832,300		2,832,300		2,825,754		2,824,016		2,837,353
IPTV^(B)	1,675,706		1,675,706		1,639,233		1,599,142		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)	2,990,188		2,990,188		3,051,630		3,126,551		3,197,216		3,231,308		3,231,308		3,275,589		3,332,976		3,399,981
Residential NAS net losses	(264,561	)	(61,442	)	(74,921	)	(70,665	)	(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 Q1 2018.

BCE Supplementary Financial Information - Fourth 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)
	December 31 2018		September 30 2018		June 30 2018		March 31 2018		December 31 2017
Debt due within one year	4,645		4,877		5,732		5,520		5,178
Long-term debt	19,760		19,584		18,367		19,347		18,215
Preferred shares - BCE^(A)	2,002		2,002		2,002		2,002		2,002
Cash and cash equivalents	(425	)	(826	)	(390	)	(1,199	)	(625	)
Net debt ⁽⁴⁾	25,982		25,637		25,711		25,670		24,770
Net debt leverage ratio ⁽⁴⁾	2.72		2.71		2.73		2.74		2.67
Adjusted EBITDA /net interest expense ratio ⁽⁴⁾	9.00		9.11		9.18		9.22		9.23

Cash flow information
(In millions of Canadian dollars, except where otherwise indicated) (unaudited)	Q4 2018		Q4 2017		$ change		% change		TOTAL 2018		TOTAL 2017		$ change		% change
Free cash flow (FCF)⁽⁴⁾
Cash flows from operating activities	1,788		1,658		130		7.8	%	7,384		7,358		26		0.4	%
Capital expenditures	(974	)	(1,100	)	126		11.5	%	(3,971	)	(4,034	)	63		1.6	%
Dividends paid on preferred shares	(46	)	(33	)	(13	)	(39.4	%)	(149	)	(127	)	(22	)	(17.3	%)
Dividends paid by subsidiaries to non-controlling interest	-		-		-		-		(16	)	(34	)	18		52.9	%
Acquisition and other costs paid	14		27		(13	)	(48.1	%)	79		155		(76	)	(49.0	%)
Voluntary defined benefit pension plan contribution	240		100		140		n.m.		240		100		140		n.m.
FCF	1,022		652		370		56.7	%	3,567		3,418		149		4.4	%

Cash flow information - Historical trend
(In millions of Canadian dollars, except where otherwise indicated) (unaudited)	TOTAL 2018		Q4 2018		Q3 2018		Q2 2018		Q1 2018		TOTAL 2017		Q4 2017		Q3 2017		Q2 2017		Q1 2017
FCF
Cash flows from operating activities	7,384		1,788		2,043		2,057		1,496		7,358		1,658		2,233		2,154		1,313
Capital expenditures	(3,971	)	(974	)	(1,010	)	(1,056	)	(931	)	(4,034	)	(1,100	)	(1,040	)	(1,042	)	(852	)
Dividends paid on preferred shares	(149	)	(46	)	(35	)	(35	)	(33	)	(127	)	(33	)	(21	)	(30	)	(43	)
Dividends paid by subsidiaries to non-controlling interest	(16	)	-		(3	)	-		(13	)	(34	)	-		(13	)	(9	)	(12	)
Acquisition and other costs paid	79		14		19		28		18		155		27		24		21		83
Voluntary defined benefit pension plan contribution	240		240		-		-		-		100		100		-		-		-
FCF	3,567		1,022		1,014		994		537		3,418		652		1,183		1,094		489

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

BCE Supplementary Financial Information - Fourth Quarter 2018 Page 11

BCE ^{(2) (3)}Consolidated Statements of Financial Position

(In millions of Canadian dollars, except where otherwise indicated) (unaudited)	December 31 2018		September 30 2018		June 30 2018		March 31 2018		December 31 2017
*ASSETS*
Current assets
Cash	425		496		254		675		442
Cash equivalents	-		330		136		524		183
Trade and other receivables	3,006		2,948		2,932		2,938		3,129
Inventory	432		491		436		443		380
Contract assets	987		906		856		836		832
Contract costs	370		355		345		337		350
Prepaid expenses	244		312		376		344		217
Other current assets	329		164		222		169		122
Total current assets	5,793		6,002		5,557		6,266		5,655
Non-current assets
Contract assets	506		440		414		414		431
Contract costs	337		318		287		280		286
Property, plant and equipment	24,844		24,726		24,392		24,169		24,029
Intangible assets	13,205		13,357		13,407		13,410		13,258
Deferred tax assets	112		122		156		153		144
Investments in associates and joint ventures	798		770		803		829		814
Other non-current assets	847		1,262		975		584		757
Goodwill	10,658		10,657		10,568		10,543		10,428
Total non-current assets	51,307		51,652		51,002		50,382		50,147
Total assets	57,100		57,654		56,559		56,648		55,802
*LIABILITIES*
Current liabilities
Trade payables and other liabilities	3,941		3,778		3,603		3,534		3,875
Contract liabilities	703		701		687		706		693
Interest payable	196		230		177		176		168
Dividends payable	691		701		701		701		678
Current tax liabilities	253		159		148		49		140
Debt due within one year	4,645		4,877		5,732		5,520		5,178
Total current liabilities	10,429		10,446		11,048		10,686		10,732
Non-current liabilities
Contract liabilities	196		201		196		196		201
Long-term debt	19,760		19,584		18,367		19,347		18,215
Deferred tax liabilities	3,163		3,230		3,139		2,916		2,870
Post-employment benefit obligations	1,866		1,890		1,987		2,124		2,108
Other non-current liabilities	997		1,160		1,098		1,083		1,051
Total non-current liabilities	25,982		26,065		24,787		25,666		24,445
Total liabilities	36,411		36,511		35,835		36,352		35,177
*EQUITY*
Equity attributable to BCE shareholders
Preferred shares	4,004		4,004		4,004		4,004		4,004
Common shares	20,036		20,028		20,027		20,026		20,091
Contributed surplus	1,170		1,161		1,151		1,141		1,162
Accumulated other comprehensive income (loss)	90		4		34		9		(17	)
Deficit	(4,937	)	(4,378	)	(4,811	)	(5,192	)	(4,938	)
Total equity attributable to BCE shareholders	20,363		20,819		20,405		19,988		20,302
Non-controlling interest	326		324		319		308		323
Total equity	20,689		21,143		20,724		20,296		20,625
Total liabilities and equity	57,100		57,654		56,559		56,648		55,802
Number of common shares outstanding (millions)	898.2		898.0		898.0		898.0		901.0

BCE Supplementary Financial Information - Fourth Quarter 2018 Page 12

BCE ^{(2) (3)}

Consolidated Cash Flow Data

(In millions of Canadian dollars, except where otherwise indicated) (unaudited)	Q4 2018		Q4 2017		$ change		TOTAL 2018		TOTAL 2017		$ change
Net earnings	642		698		(56	)	2,973		3,050		(77	)
Adjustments to reconcile net earnings to cash flows from operating activities
Severance, acquisition and other costs	58		47		11		136		190		(54	)
Depreciation and amortization	1,015		991		24		4,014		3,844		170
Post-employment benefit plans cost	83		82		1		335		314		21
Net interest expense	255		238		17		987		942		45
Losses on investments	34		(7	)	41		34		5		29
Income taxes	244		272		(28	)	995		1,069		(74	)
Contributions to post-employment benefit plans	(309	)	(175	)	(134	)	(539	)	(413	)	(126	)
Payments under other post-employment benefit plans	(17	)	(19	)	2		(75	)	(77	)	2
Severance and other costs paid	(43	)	(36	)	(7	)	(138	)	(147	)	9
Interest paid	(295	)	(251	)	(44	)	(990	)	(965	)	(25	)
Income taxes paid (net of refunds)	(92	)	(207	)	115		(650	)	(675	)	25
Acquisition and other costs paid	(14	)	(27	)	13		(79	)	(155	)	76
Net change in operating assets and liabilities	227		52		175		381		376		5
Cash flows from operating activities	1,788		1,658		130		7,384		7,358		26
Capital expenditures	(974	)	(1,100	)	126		(3,971	)	(4,034	)	63
Cash dividends paid on preferred shares	(46	)	(33	)	(13	)	(149	)	(127	)	(22	)
Cash dividends paid by subsidiaries to non-controlling interest	-		-		-		(16	)	(34	)	18
Acquisition and other costs paid	14		27		(13	)	79		155		(76	)
Voluntary defined benefit pension plan contribution	240		100		140		240		100		140
Free cash flow	1,022		652		370		3,567		3,418		149
Business acquisitions	-		(14	)	14		(395	)	(1,649	)	1,254
Acquisition and other costs paid	(14	)	(27	)	13		(79	)	(155	)	76
Voluntary defined benefit pension plan contribution	(240	)	(100	)	(140	)	(240	)	(100	)	(140	)
Acquisition of spectrum licences	(1	)	-		(1	)	(56	)	-		(56	)
Disposition of intangibles and other assets	-		-		-		68		323		(255	)
Other investing activities	32		(26	)	58		(32	)	(77	)	45
(Decrease) increase in notes payable	(133	)	277		(410	)	(123	)	333		(456	)
Decrease in securitized trade receivables	-		-		-		(2	)	(10	)	8
Issue of long-term debt	-		-		-		2,996		3,011		(15	)
Repayment of long-term debt	(338	)	(1,435	)	1,097		(2,713	)	(2,653	)	(60	)
Issue of common shares	8		24		(16	)	11		117		(106	)
Repurchase of common shares	-		-		-		(175	)	-		(175	)
Purchase of shares for settlement of share-based payments	(46	)	(45	)	(1	)	(222	)	(224	)	2
Cash dividends paid on common shares	(677	)	(646	)	(31	)	(2,679	)	(2,512	)	(167	)
Return of capital to non-controlling interest	-		-		-		(51	)	-		(51	)
Other financing activities	(14	)	(14	)	-		(75	)	(50	)	(25	)
	(1,423	)	(2,006	)	583		(3,767	)	(3,646	)	(121	)
Net decrease in cash and cash equivalents	(401	)	(1,354	)	953		(200	)	(228	)	28
Cash and cash equivalents at beginning of period	826		1,979		(1,153	)	625		853		(228	)
Cash and cash equivalents at end of period	425		625		(200	)	425		625		(200	)

BCE Supplementary Financial Information - Fourth Quarter 2018 Page 13

BCE
Consolidated Cash Flow Data - Historical Trend

(In millions of Canadian dollars, except where otherwise indicated)(unaudited)	TOTAL 2018		Q4 18		Q3 18		Q2 18		Q1 18		TOTAL 2017		Q4 17		Q3 17		Q2 17		Q1 17
Net earnings	2,973		642		867		755		709		3,050		698		850		814		688
Adjustments to reconcile net earnings to cash flows from operating activities
Severance, acquisition and other costs	136		58		54		24		-		190		47		23		36		84
Depreciation and amortization	4,014		1,015		999		1,008		992		3,844		991		967		977		909
Post-employment benefit plans cost	335		83		82		80		90		314		82		82		82		68
Net interest expense	987		255		251		243		238		942		238		239		235		230
Losses (gains) on investments	34		34		-		-		-		5		(7	)	-		-		12
Income taxes	995		244		224		292		235		1,069		272		249		298		250
Contributions to post-employment benefit plans	(539	)	(309	)	(69	)	(74	)	(87	)	(413	)	(175	)	(64	)	(86	)	(88	)
Payments under other post-employment benefit plans	(75	)	(17	)	(20	)	(19	)	(19	)	(77	)	(19	)	(20	)	(19	)	(19	)
Severance and other costs paid	(138	)	(43	)	(27	)	(33	)	(35	)	(147	)	(36	)	(30	)	(40	)	(41	)
Interest paid	(990	)	(295	)	(207	)	(252	)	(236	)	(965	)	(251	)	(242	)	(249	)	(223	)
Income taxes paid (net of refunds)	(650	)	(92	)	(161	)	(113	)	(284	)	(675	)	(207	)	(66	)	(114	)	(288	)
Acquisition and other costs paid	(79	)	(14	)	(19	)	(28	)	(18	)	(155	)	(27	)	(24	)	(21	)	(83	)
Net change in operating assets and liabilities	381		227		69		174		(89	)	376		52		269		241		(186	)
Cash flows from operating activities	7,384		1,788		2,043		2,057		1,496		7,358		1,658		2,233		2,154		1,313
Capital expenditures	(3,971	)	(974	)	(1,010	)	(1,056	)	(931	)	(4,034	)	(1,100	)	(1,040	)	(1,042	)	(852	)
Cash dividends paid on preferred shares	(149	)	(46	)	(35	)	(35	)	(33	)	(127	)	(33	)	(21	)	(30	)	(43	)
Cash dividends paid by subsidiaries to non-controlling interest	(16	)	-		(3	)	-		(13	)	(34	)	-		(13	)	(9	)	(12	)
Acquisition and other costs paid	79		14		19		28		18		155		27		24		21		83
Voluntary defined benefit pension plan contribution	240		240		-		-		-		100		100		-		-		-
Free cash flow	3,567		1,022		1,014		994		537		3,418		652		1,183		1,094		489
Business acquisitions	(395	)	-		(151	)	(21	)	(223	)	(1,649	)	(14	)	-		-		(1,635	)
Acquisition and other costs paid	(79	)	(14	)	(19	)	(28	)	(18	)	(155	)	(27	)	(24	)	(21	)	(83	)
Voluntary defined benefit pension plan contribution	(240	)	(240	)	-		-		-		(100	)	(100	)	-		-		-
Acquisition of spectrum licences	(56	)	(1	)	(19	)	-		(36	)	-		-		-		-		-
Disposition of intangibles and other assets	68		-		-		-		68		323		-		-		323		-
Other investing activities	(32	)	32		(9	)	(20	)	(35	)	(77	)	(26	)	(37	)	(5	)	(9	)
(Decrease) increase in notes payable	(123	)	(133	)	(30	)	97		(57	)	333		277		(379	)	127		308
(Decrease) increase in securitized trade receivables	(2	)	-		-		(2	)	-		(10	)	-		-		(360	)	350
Issue of long-term debt	2,996		-		1,530		-		1,466		3,011		-		1,515		-		1,496
Repayment of long-term debt	(2,713	)	(338	)	(1,134	)	(1,068	)	(173	)	(2,653	)	(1,435	)	(142	)	(472	)	(604	)
Issue of common shares	11		8		1		1		1		117		24		4		41		48
Repurchase of common shares	(175	)	-		-		-		(175	)	-		-		-		-		-
Purchase of shares for settlement of share-based payments	(222	)	(46	)	(39	)	(49	)	(88	)	(224	)	(45	)	(38	)	(45	)	(96	)
Cash dividends paid on common shares	(2,679	)	(677	)	(678	)	(678	)	(646	)	(2,512	)	(646	)	(646	)	(626	)	(594	)
Return of capital to non-controlling interest	(51	)	-		(10	)	(12	)	(29	)	-		-		-		-		-
Other financing activities	(75	)	(14	)	(20	)	(23	)	(18	)	(50	)	(14	)	(14	)	(9	)	(13	)
	(3,767	)	(1,423	)	(578	)	(1,803	)	37		(3,646	)	(2,006	)	239		(1,047	)	(832	)
Net (decrease) increase in cash and cash equivalents	(200	)	(401	)	436		(809	)	574		(228	)	(1,354	)	1,422		47		(343	)
Cash and cash equivalents at beginning of period	625		826		390		1,199		625		853		1,979		557		510		853
Cash and cash equivalents at end of period	425		425		826		390		1,199		625		625		1,979		557		510

BCE Supplementary Financial Information - Fourth 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, note 14 and note 15, Adoption of IFRS 15, respectively, of the Q1 2018, Q2 2018 and Q3 2018 consolidated interim 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, Business acquisitions and dispositions, of the 2017 annual consolidated financial statements and the Q3 2018 consolidated interim 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 - Fourth Quarter 2018 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, net of tax and non-controlling interest (NCI). 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 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 on common shares, 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 - Fourth Quarter 2018 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 - Fourth Quarter 2018 Page 17