SUPPLEMENTARY FINANCIAL INFORMATION

EX-99.2 3 d882619dex992.htm SUPPLEMENTARY FINANCIAL INFORMATION - FOURTH QUARTER 2019 SUPPLEMENTARY FINANCIAL INFORMATION - FOURTH QUARTER 2019

Exhibit 99.2

LOGO

Supplementary Financial Information Q4 Fourth Quarter 2019 BCE Investor Relations Thane Fotopoulos 514-870-4619 thane.fotopoulos@bell.ca

BCE^{(1) (2) (3)}

Consolidated Operational Data


(In millions of Canadian dollars, except share amounts) (unaudited)	Q4 2019		Q4 2018		$ change		% change		TOTAL 2019		TOTAL 2018		$ change		% change
Operating revenues
Service		5,276		5,231		45		0.9%		20,737		20,441		296		1.4%
Product		1,040		984		56		5.7%		3,227		3,027		200		6.6%
Total operating revenues		6,316		6,215		101		1.6%		23,964		23,468		496		2.1%
Operating costs ^(A)		(3,748)		(3,756)		8		0.2%		(13,611)		(13,667)		56		0.4%
Post-employment benefit plans service cost		(60)		(65)		5		7.7%		(247)		(266)		19		7.1%
Adjusted EBITDA ⁽⁴⁾		2,508		2,394		114		4.8%		10,106		9,535		571		6.0%
*Adjusted EBITDA margin* ⁽⁴⁾		*39.7%*		38.5%				1.2 pts		42.2%		40.6%				1.6 pts
Severance, acquisition and other costs		(28)		(58)		30		51.7%		(114)		(136)		22		16.2%
Depreciation		(865)		(799)		(66)		(8.3%)		(3,496)		(3,145)		(351)		(11.2%)
Amortization		(228)		(216)		(12)		(5.6%)		(902)		(869)		(33)		(3.8%)
Finance costs
Interest expense		(286)		(259)		(27)		(10.4%)		(1,132)		(1,000)		(132)		(13.2%)
Interest on post-employment benefit obligations		(16)		(18)		2		11.1%		(63)		(69)		6		8.7%
Other expense		(119)		(158)		39		24.7%		(13)		(348)		335		96.3%
Income taxes		(243)		(244)		1		0.4%		(1,133)		(995)		(138)		(13.9%)
Net earnings		723		642		81		12.6%		3,253		2,973		280		9.4%
Net earnings attributable to:
Common shareholders		672		606		66		10.9%		3,040		2,785		255		9.2%
Preferred shareholders		38		37		1		2.7%		151		144		7		4.9%
Non-controlling interest		13		(1)		14		n.m.		62		44		18		40.9%
Net earnings		723		642		81		12.6%		3,253		2,973		280		9.4%

Net earnings per common share - basic and diluted	$	0.74	$	0.68	$	0.06		8.8%	$	3.37	$	3.10	$	0.27		8.7%

Dividends per common share	$	0.7925	$	0.7550	$	0.0375		5.0%	$	3.1700	$	3.0200	$	0.1500		5.0%

Weighted average number of common shares outstanding - basic (millions)		903.8		898.1						900.8		898.6
Weighted average number of common shares outstanding - diluted (millions)		904.8		898.4						901.4		898.9
Number of common shares outstanding (millions)		903.9		898.2						903.9		898.2

Adjusted net earnings and EPS
Net earnings attributable to common shareholders		672		606		66		10.9%		3,040		2,785		255		9.2%
Severance, acquisition and other costs		20		44		(24)		(54.5%)		83		100		(17)		(17.0%)
Net mark-to-market losses (gains) on derivatives used to economically hedge equity settled share-based compensation plans		45		(25)		70		n.m.		(101)		58		(159)		n.m.
Net (gains) losses on investments		(13)		27		(40)		n.m.		44		47		(3)		(6.4%)
Early debt redemption costs		-		-		-		-		13		15		(2)		(13.3%)
Impairment charges		70		142		(72)		(50.7%)		74		146		(72)		(49.3%)
Adjusted net earnings ⁽⁴⁾		794		794		-		-		3,153		3,151		2		0.1%
Impact on net earnings per share	$	0.14	$	0.21	$	(0.07)		(33.3%)	$	0.13	$	0.41	$	(0.28)		(68.3%)
Adjusted EPS ⁽⁴⁾	$	0.88	$	0.89	$	(0.01)		(1.1%)	$	3.50	$	3.51	$	(0.01)		(0.3%)

n.m. : not meaningful

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

BCE Supplementary Financial Information - Fourth Quarter 2019 Page 2

BCE

Consolidated Operational Data - Historical Trend


(In millions of Canadian dollars, except share amounts) (unaudited)		TOTAL 2019			Q4 19			Q3 19			Q2 19			Q1 19			TOTAL 2018			Q4 18			Q3 18			Q2 18			Q1 18
Operating revenues
Service		20,737			5,276			5,185			5,231			5,045			20,441			5,231			5,117			5,129			4,964
Product		3,227			1,040			799			699			689			3,027			984			760			657			626
Total operating revenues		23,964			6,316			5,984			5,930			5,734			23,468			6,215			5,877			5,786			5,590
Operating costs ^(A)		(13,611	)		(3,748	)		(3,330	)		(3,277	)		(3,256	)		(13,667	)		(3,756	)		(3,355	)		(3,293	)		(3,263	)
Post-employment benefit plans service cost		(247	)		(60	)		(60	)		(58	)		(69	)		(266	)		(65	)		(65	)		(63	)		(73	)
Adjusted EBITDA		10,106			2,508			2,594			2,595			2,409			9,535			2,394			2,457			2,430			2,254
*Adjusted EBITDA margin*		*42.2%*			*39.7%*			43.3%			43.8%			42.0%			40.6%			38.5%			41.8%			42.0%			40.3%
Severance, acquisition and other costs		(114	)		(28	)		(23	)		(39	)		(24	)		(136	)		(58	)		(54	)		(24	)		-
Depreciation		(3,496	)		(865	)		(861	)		(888	)		(882	)		(3,145	)		(799	)		(779	)		(787	)		(780	)
Amortization		(902	)		(228	)		(230	)		(223	)		(221	)		(869	)		(216	)		(220	)		(221	)		(212	)
Finance costs

Interest expense		(1,132	)		(286	)		(282	)		(281	)		(283	)		(1,000	)		(259	)		(255	)		(246	)		(240	)
Interest on post-employment benefit obligations		(63	)		(16	)		(16	)		(15	)		(16	)		(69	)		(18	)		(17	)		(17	)		(17	)
Other (expense) income		(13	)		(119	)		61			(56	)		101			(348	)		(158	)		(41	)		(88	)		(61	)
Income taxes		(1,133	)		(243	)		(321	)		(276	)		(293	)		(995	)		(244	)		(224	)		(292	)		(235	)
Net earnings		3,253			723			922			817			791			2,973			642			867			755			709
Net earnings attributable to:
Common shareholders		3,040			672			867			761			740			2,785			606			814			704			661
Preferred shareholders		151			38			37			38			38			144			37			36			35			36
Non-controlling interest		62			13			18			18			13			44			(1	)		17			16			12
Net earnings		3,253			723			922			817			791			2,973			642			867			755			709

Net earnings per common share - basic and diluted	$	3.37		$	0.74		$	0.96		$	0.85		$	0.82		$	3.10		$	0.68		$	0.90		$	0.79		$	0.73

Dividends per common share	$	3.1700		$	0.7925		$	0.7925		$	0.7925		$	0.7925		$	3.0200		$	0.7550		$	0.7550		$	0.7550		$	0.7550

Weighted average number of common shares outstanding - basic (millions)		900.8			903.8			901.4			899.5			898.4			898.6			898.1			898.0			898.0			900.2
Weighted average number of common shares outstanding - diluted (millions)		901.4			904.8			902.2			900.3			898.7			898.9			898.4			898.3			898.3			900.6
Number of common shares outstanding (millions)		903.9			903.9			903.7			900.1			898.8			898.2			898.2			898.0			898.0			898.0

Adjusted net earnings and EPS
Net earnings attributable to common shareholders		3,040			672			867			761			740			2,785			606			814			704			661
Severance, acquisition and other costs		83			20			17			28			18			100			44			39			18			(1	)
Net mark-to-market (gains) losses on derivatives used to economically hedge equity settled share-based compensation plans		(101	)		45			(64	)		(9	)		(73	)		58			(25	)		5			22			56
Net losses (gains) on investments		44			(13	)		-			53			4			47			27			-			20			-
Early debt redemption costs		13			-			-			13			-			15			-			2			13			-
Impairment charges		74			70			-			1			3			146			142			1			-			3
Adjusted net earnings		3,153			794			820			847			692			3,151			794			861			777			719
Impact on net earnings per share	$	0.13		$	0.14		$	(0.05	)	$	0.09		$	(0.05	)	$	0.41		$	0.21		$	0.06		$	0.07		$	0.07

Adjusted EPS	$	3.50		$	0.88		$	0.91		$	0.94		$	0.77		$	3.51		$	0.89		$	0.96		$	0.86		$	0.80

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

BCE Supplementary Financial Information - Fourth Quarter 2019 Page 3

BCE ⁽¹⁾ ⁽²⁾ ⁽³⁾

Segmented Data


(In millions of Canadian dollars, except where otherwise indicated) (unaudited)	Q4 2019			Q4 2018			$ change			% change		TOTAL 2019			TOTAL 2018			$ change			% change

Operating revenues
Bell Wireless		2,493			2,407			86			3.6%		9,142			8,818			324			3.7%
Bell Wireline		3,138			3,137			1			-		12,356			12,267			89			0.7%
Bell Media		879			850			29			3.4%		3,217			3,121			96			3.1%
Inter-segment eliminations		(194	)		(179	)		(15	)		(8.4%)		(751	)		(738	)		(13	)		(1.8%)
Total		6,316			6,215			101			1.6%		23,964			23,468			496			2.1%

Operating costs
Bell Wireless		(1,549	)		(1,528	)		(21	)		(1.4%)		(5,300	)		(5,297	)		(3	)		(0.1%)
Bell Wireline		(1,779	)		(1,798	)		19			1.1%		(6,942	)		(6,946	)		4			0.1%
Bell Media		(674	)		(674	)		-			-		(2,367	)		(2,428	)		61			2.5%
Inter-segment eliminations		194			179			15			8.4%		751			738			13			1.8%
Total		(3,808	)		(3,821	)		13			0.3%		(13,858	)		(13,933	)		75			0.5%

Adjusted EBITDA
Bell Wireless		944			879			65			7.4%		3,842			3,521			321			9.1%
Margin		*37.9%*			36.5%						1.4 pts		*42.0%*			39.9%						2.1 pts
Bell Wireline		1,359			1,339			20			1.5%		5,414			5,321			93			1.7%
Margin		*43.3%*			42.7%						0.6 pts		*43.8%*			43.4%						0.4 pts
Bell Media		205			176			29			16.5%		850			693			157			22.7%
Margin		*23.3%*			20.7%						2.6 pts		*26.4%*			22.2%						4.2 pts
Total		2,508			2,394			114			4.8%		10,106			9,535			571			6.0%
Margin		*39.7%*			38.5%						1.2 pts		*42.2%*			40.6%						1.6 pts

Capital expenditures
Bell Wireless		211			133			(78	)		(58.6%)		697			664			(33	)		(5.0%)
Capital intensity ⁽⁵⁾		*8.5%*			5.5%						(3.0) pts		*7.6%*			7.5%						(0.1) pts
Bell Wireline		905			809			(96	)		(11.9%)		3,183			3,193			10			0.3%
Capital intensity		*28.8%*			25.8%						(3.0) pts		*25.8%*			26.0%						0.2 pts
Bell Media		37			32			(5	)		(15.6%)		108			114			6			5.3%
Capital intensity		*4.2%*			3.8%						(0.4) pts		*3.4%*			3.7%						0.3 pts
Total		1,153			974			(179	)		(18.4%)		3,988			3,971			(17	)		(0.4%	)
Capital intensity		*18.3%*			15.7%						(2.6) pts		*16.6%*			16.9%						0.3 pts

BCE Supplementary Financial Information - Fourth Quarter 2019 Page 4

BCE

Segmented Data - Historical Trend


(In millions of Canadian dollars, except where otherwise indicated) (unaudited)	TOTAL 2019			Q4 19			Q3 19			Q2 19			Q1 19			TOTAL 2018			Q4 18			Q3 18			Q2 18			Q1 18

Operating revenues
Bell Wireless		9,142			2,493			2,348			2,189			2,112			8,818			2,407			2,269			2,121			2,021
Bell Wireline		12,356			3,138			3,066			3,088			3,064			12,267			3,137			3,060			3,061			3,009
Bell Media		3,217			879			751			842			745			3,121			850			731			791			749
Inter-segment eliminations		(751	)		(194	)		(181	)		(189	)		(187	)		(738	)		(179	)		(183	)		(187	)		(189	)
Total		23,964			6,316			5,984			5,930			5,734			23,468			6,215			5,877			5,786			5,590

Operating costs
Bell Wireless		(5,300	)		(1,549	)		(1,335	)		(1,209	)		(1,207	)		(5,297	)		(1,528	)		(1,330	)		(1,229	)		(1,210	)
Bell Wireline		(6,942	)		(1,779	)		(1,711	)		(1,727	)		(1,725	)		(6,946	)		(1,798	)		(1,724	)		(1,728	)		(1,696	)
Bell Media		(2,367	)		(674	)		(525	)		(588	)		(580	)		(2,428	)		(674	)		(549	)		(586	)		(619	)
Inter-segment eliminations		751			194			181			189			187			738			179			183			187			189
Total		(13,858	)		(3,808	)		(3,390	)		(3,335	)		(3,325	)		(13,933	)		(3,821	)		(3,420	)		(3,356	)		(3,336	)

Adjusted EBITDA
Bell Wireless		3,842			944			1,013			980			905			3,521			879			939			892			811
Margin		*42.0%*			*37.9%*			43.1%			44.8%			42.9%			39.9%			36.5%			41.4%			42.1%			40.1%
Bell Wireline		5,414			1,359			1,355			1,361			1,339			5,321			1,339			1,336			1,333			1,313
Margin		*43.8%*			*43.3%*			44.2%			44.1%			43.7%			43.4%			42.7%			43.7%			43.5%			43.6%
Bell Media		850			205			226			254			165			693			176			182			205			130
Margin		*26.4%*			*23.3%*			30.1%			30.2%			22.1%			22.2%			20.7%			24.9%			25.9%			17.4%
Total		10,106			2,508			2,594			2,595			2,409			9,535			2,394			2,457			2,430			2,254
Margin		*42.2%*			*39.7%*			43.3%			43.8%			42.0%			40.6%			38.5%			41.8%			42.0%			40.3%

Capital expenditures
Bell Wireless		697			211			167			168			151			664			133			183			181			167
Capital intensity		*7.6%*			*8.5%*			7.1%			7.7%			7.1%			7.5%			5.5%			8.1%			8.5%			8.3%
Bell Wireline		3,183			905			824			780			674			3,193			809			797			843			744
Capital intensity		*25.8%*			*28.8%*			26.9%			25.3%			22.0%			26.0%			25.8%			26.0%			27.5%			24.7%
Bell Media		108			37			22			24			25			114			32			30			32			20
Capital intensity		*3.4%*			*4.2%*			2.9%			2.9%			3.4%			3.7%			3.8%			4.1%			4.0%			2.7%
Total		3,988			1,153			1,013			972			850			3,971			974			1,010			1,056			931
Capital intensity		*16.6%*			*18.3%*			16.9%			16.4%			14.8%			16.9%			15.7%			17.2%			18.3%			16.7%

BCE Supplementary Financial Information - Fourth Quarter 2019 Page 5

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


(In millions of Canadian dollars, except where otherwise indicated) (unaudited)	Q4 2019		Q4 2018		% change	TOTAL 2019		TOTAL 2018		% change
Bell Wireless
Operating revenues
External service revenues	1,607		1,581		1.6%	6,427		6,269		2.5%
Inter-segment service revenues	12		12		-	49		48		2.1%
Total operating service revenues	1,619		1,593		1.6%	6,476		6,317		2.5%
External product revenues	871		814		7.0%	2,660		2,497		6.5%
Inter-segment product revenues	3		-		n.m.	6		4		50.0%
Total operating product revenues	874		814		7.4%	2,666		2,501		6.6%
Total external revenues	2,478		2,395		3.5%	9,087		8,766		3.7%
Total operating revenues	2,493		2,407		3.6%	9,142		8,818		3.7%
Operating costs	(1,549	)	(1,528	)	(1.4%)	(5,300	)	(5,297	)	(0.1%)
Adjusted EBITDA	944		879		7.4%	3,842		3,521		9.1%
Adjusted EBITDA margin (Total operating revenues)	*37.9%*		36.5%		1.4 pts	*42.0%*		39.9%		2.1 pts

Capital expenditures	211		133		(58.6%)	697		664		(5.0%)
Capital intensity	*8.5%*		5.5%		(3.0) pts	*7.6%*		7.5%		(0.1) pts
Wireless subscriber gross activations ⁽⁵⁾	596,019		546,203		9.1%	2,117,517		1,954,792		8.3%

Postpaid	455,111		447,590		1.7%	1,568,729		1,615,764		(2.9%)

Prepaid	140,908		98,613		42.9%	548,788		339,028		61.9%

Wireless subscriber net activations	123,582		143,114		(13.6%)	515,409		479,811		7.4%

Postpaid	121,599		121,780		(0.1%)	401,955		447,682		(10.2%)

Prepaid	1,983		21,334		(90.7%)	113,454		32,129		253.1%

Wireless subscribers end of period (EOP)^(A)(B)	9,957,962		9,610,482		3.6%	9,957,962		9,610,482		3.6%

Postpaid^(A)(B)	9,159,940		8,830,216		3.7%	9,159,940		8,830,216		3.7%

Prepaid^(A)	798,022		780,266		2.3%	798,022		780,266		2.3%

Blended average billing per user (ABPU)($/month) ^(5)(C)	67.20		67.46		(0.4%)	68.32		67.76		0.8%

Churn (%) (average per month) ⁽⁵⁾	1.60%		1.41%		(0.19) pts	1.39%		1.32%		(0.07) pts

Postpaid	1.28%		1.26%		(0.02) pts	1.13%		1.16%		0.03 pts

Prepaid	5.14%		3.18%		(1.96) pts	4.44%		3.17%		(1.27) pts

n.m. : not meaningful

^(A) At the beginning of Q1 2019, we adjusted our wireless subscriber base to remove 167,929 subscribers (72,231 postpaid and 95,698 prepaid) as follows:

65,798 subscribers (19,195 postpaid and 46,603 prepaid), due to the completion of the shutdown of the code division multiple access (CDMA) network on April 30, 2019

49,095 prepaid subscribers as a result of a change to our deactivation policy, mainly from 120 days for Bell/Virgin Mobile Canada (Virgin Mobile) and 150 days for Lucky Mobile to 90 days

43,670 postpaid subscribers relating to Internet of Things (IoT) due to the further refinement of our subscriber definition as a result of technology evolution

9,366 postpaid fixed wireless Internet subscribers which were transferred to our retail high-speed Internet subscriber base

^(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) in 2017.

^(C) Our Q1 2018 blended ABPU was adjusted to exclude the unfavourable retroactive impact of the Canadian Radio-television and Telecommunications Commission (CRTC) decision on wireless domestic wholesale roaming rates of $14 million.

BCE Supplementary Financial Information - Fourth Quarter 2019 Page 6

Bell Wireless - Historical Trend


(In millions of Canadian dollars, except where otherwise indicated) (unaudited)	TOTAL 2019			Q4 19			Q3 19			Q2 19			Q1 19			TOTAL 2018			Q4 18			Q3 18			Q2 18			Q1 18
Bell Wireless
Operating revenues
External service revenues		6,427			1,607			1,660			1,606			1,554			6,269			1,581			1,620			1,566			1,502
Inter-segment service revenues		49			12			13			12			12			48			12			12			12			12
Total operating service revenues		6,476			1,619			1,673			1,618			1,566			6,317			1,593			1,632			1,578			1,514
External product revenues		2,660			871			675			569			545			2,497			814			636			541			506
Inter-segment product revenues		6			3			-			2			1			4			-			1			2			1
Total operating product revenues		2,666			874			675			571			546			2,501			814			637			543			507
Total external revenues		9,087			2,478			2,335			2,175			2,099			8,766			2,395			2,256			2,107			2,008
Total operating revenues		9,142			2,493			2,348			2,189			2,112			8,818			2,407			2,269			2,121			2,021
Operating costs		(5,300	)		(1,549	)		(1,335	)		(1,209	)		(1,207	)		(5,297	)		(1,528	)		(1,330	)		(1,229	)		(1,210	)
Adjusted EBITDA		3,842			944			1,013			980			905			3,521			879			939			892			811
Adjusted EBITDA margin (Total operating revenues)		*42.0%*			*37.9%*			43.1%			44.8%			42.9%			39.9%			36.5%			41.4%			42.1%			40.1%

Capital expenditures		697			211			167			168			151			664			133			183			181			167
Capital intensity		*7.6%*			*8.5%*			7.1%			7.7%			7.1%			7.5%			5.5%			8.1%			8.5%			8.3%
Wireless subscriber gross activations		2,117,517			596,019			593,547			517,650			410,301			1,954,792			546,203			535,647			468,152			404,790
Postpaid		1,568,729			455,111			417,966			375,094			320,558			1,615,764			447,590			426,719			394,136			347,319
Prepaid		548,788			140,908			175,581			142,556			89,743			339,028			98,613			108,928			74,016			57,471
Wireless subscriber net activations (losses)		515,409			123,582			204,067			149,478			38,282			479,811			143,114			177,834			114,486			44,377

Postpaid		401,955			121,599			127,172			102,980			50,204			447,682			121,780			135,323			122,092			68,487

Prepaid		113,454			1,983			76,895			46,498			(11,922	)		32,129			21,334			42,511			(7,606	)		(24,110	)
Wireless subscribers EOP^(A)(B)		9,957,962			9,957,962			9,834,380			9,630,313			9,480,835			9,610,482			9,610,482			9,487,368			9,309,534			9,195,048

Postpaid^(A)(B)		9,159,940			9,159,940			9,038,341			8,911,169			8,808,189			8,830,216			8,830,216			8,728,436			8,593,113			8,471,021

Prepaid^(A)		798,022			798,022			796,039			719,144			672,646			780,266			780,266			758,932			716,421			724,027

Blended ABPU ($/month)^(C)		68.32			67.20			69.93			68.79			67.35			67.76			67.46			69.28			67.71			66.56
Churn (%)(average per month)		1.39%			1.60%			1.34%			1.29%			1.31%			1.32%			1.41%			1.27%			1.28%			1.31%

Postpaid		1.13%			1.28%			1.12%			1.06%			1.07%			1.16%			1.26%			1.14%			1.10%			1.13%
Prepaid		4.44%			5.14%			3.89%			4.20%			4.49%			3.17%			3.18%			2.76%			3.34%			3.40%

^(A) At the beginning of Q1 2019, we adjusted our wireless subscriber base to remove 167,929 subscribers (72,231 postpaid and 95,698 prepaid) as follows:

^•

65,798 subscribers (19,195 postpaid and 46,603 prepaid), due to the completion of the shutdown of the CDMA network on April 30, 2019

^•

49,095 prepaid subscribers as a result of a change to our deactivation policy, mainly from 120 days for Bell/Virgin Mobile and 150 days for Lucky Mobile to 90 days

^•

43,670 postpaid subscribers relating to IoT due to the further refinement of our subscriber definition as a result of technology evolution

^•

9,366 postpaid fixed wireless Internet subscribers which were transferred to our retail high-speed Internet subscriber base

^(B) 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 in 2017.

^(C) Our Q1 2018 blended ABPU was adjusted to exclude the unfavourable retroactive impact of the CRTC decision on wireless domestic wholesale roaming rates of $14 million.

BCE Supplementary Financial Information - Fourth Quarter 2019 Page 7

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


(In millions of Canadian dollars, except where otherwise indicated) (unaudited)	Q4 2019			Q4 2018			% change		TOTAL 2019			TOTAL 2018			% change
Bell Wireline
Operating revenues
Data		1,941			1,910			1.6%		7,684			7,466			2.9%
Voice		879			933			(5.8%)		3,564			3,782			(5.8%)
Other services		69			60			15.0%		251			247			1.6%
Total external service revenues		2,889			2,903			(0.5%)		11,499			11,495			-
Inter-segment service revenues		80			64			25.0%		289			242			19.4%
Total operating service revenues		2,969			2,967			0.1%		11,788			11,737			0.4%
Data		152			153			(0.7%)		519			466			11.4%
Equipment and other		17			17			-		48			64			(25.0%)
Total external product revenues		169			170			(0.6%)		567			530			7.0%
Inter-segment product revenues		-			-			-		1			-			n.m.
Total operating product revenues		169			170			(0.6%)		568			530			7.2%
Total external revenues		3,058			3,073			(0.5%)		12,066			12,025			0.3%
Total operating revenues		3,138			3,137			-		12,356			12,267			0.7%
Operating costs		(1,779	)		(1,798	)		1.1%		(6,942	)		(6,946	)		0.1%
Adjusted EBITDA		1,359			1,339			1.5%		5,414			5,321			1.7%
Adjusted EBITDA margin		*43.3%*			42.7%			0.6 pts		*43.8%*			43.4%			0.4 pts

Capital expenditures		905			809			(11.9%)		3,183			3,193			0.3%
Capital intensity		*28.8%*			25.8%			(3.0) pts		*25.8%*			26.0%			0.2 pts
Retail high-speed Internet subscribers ⁽⁵⁾

Retail net activations ^(A)		35,639			32,518			9.6%		135,861			116,599			16.5%

Retail subscribers EOP ^(A)^(B)		3,555,601			3,410,374			4.3%		3,555,601			3,410,374			4.3%

Retail TV subscribers ⁽⁵⁾

Retail net subscriber activations (losses) ^(A)		421			13,231			(96.8%)		6,053			21,559			(71.9%)

Internet protocol television (IPTV)		22,039			36,473			(39.6%)		91,476			110,790			(17.4%)

Satellite		(21,618	)		(23,242	)		7.0%		(85,423	)		(89,231	)		4.3%

Total retail subscribers EOP ^(A)		2,772,464			2,766,411			0.2%		2,772,464			2,766,411			0.2%

IPTV		1,767,182			1,675,706			5.5%		1,767,182			1,675,706			5.5%

Satellite		1,005,282			1,090,705			(7.8%)		1,005,282			1,090,705			(7.8%)

Retail network access services (NAS) ⁽⁵⁾

Retail residential NAS lines net losses ^(A)		(58,110	)		(60,011	)		3.2%		(263,325	)		(258,881	)		(1.7%)

Retail residential NAS lines ^(A)		2,697,483			2,960,808			(8.9%)		2,697,483			2,960,808			(8.9%)

n.m. : not meaningful

^(A) As of January 1, 2019, we are no longer reporting wholesale subscribers in our Internet, TV, and residential NAS subscriber bases reflecting our focus on the retail market.

Consequently, we restated previously reported 2018 subscribers for comparability.

^(B) At the beginning of Q1 2019, our retail high-speed Internet subscriber base was increased by 9,366 subscribers due to the transfer of fixed wireless Internet subscribers from our wireless segment.

BCE Supplementary Financial Information - Fourth Quarter 2019 Page 8

Bell Wireline - Historical Trend


(In millions of Canadian dollars, except where otherwise indicated) (unaudited)	TOTAL 2019			Q4 19			Q3 19			Q2 19			Q1 19			TOTAL 2018			Q4 18			Q3 18			Q2 18			Q1 18
Bell Wireline
Operating revenues
Data		7,684			1,941			1,929			1,929			1,885			7,466			1,910			1,867			1,869			1,820
Voice		3,564			879			881			897			907			3,782			933			948			953			948
Other services		251			69			61			62			59			247			60			60			64			63
Total external service revenues		11,499			2,889			2,871			2,888			2,851			11,495			2,903			2,875			2,886			2,831
Inter-segment service revenues		289			80			70			70			69			242			64			61			59			58
Total operating service revenues		11,788			2,969			2,941			2,958			2,920			11,737			2,967			2,936			2,945			2,889
Data		519			152			114			120			133			466			153			111			98			104
Equipment and other		48			17			10			10			11			64			17			13			18			16
Total external product revenues		567			169			124			130			144			530			170			124			116			120
Inter-segment product revenues		1			-			1			-			-			-			-			-			-			-
Total operating product revenues		568			169			125			130			144			530			170			124			116			120
Total external revenues		12,066			3,058			2,995			3,018			2,995			12,025			3,073			2,999			3,002			2,951
Total operating revenues		12,356			3,138			3,066			3,088			3,064			12,267			3,137			3,060			3,061			3,009
Operating costs		(6,942	)		(1,779	)		(1,711	)		(1,727	)		(1,725	)		(6,946	)		(1,798	)		(1,724	)		(1,728	)		(1,696	)
Adjusted EBITDA		5,414			1,359			1,355			1,361			1,339			5,321			1,339			1,336			1,333			1,313
Adjusted EBITDA margin		*43.8%*			*43.3%*			44.2%			44.1%			43.7%			43.4%			42.7%			43.7%			43.5%			43.6%

Capital expenditures		3,183			905			824			780			674			3,193			809			797			843			744
Capital intensity		*25.8%*			*28.8%*			26.9%			25.3%			22.0%			26.0%			25.8%			26.0%			27.5%			24.7%
Retail high-speed Internet subscribers

Retail net activations ^(A)		135,861			35,639			58,137			19,414			22,671			116,599			32,518			53,122			12,803			18,156

Retail subscribers EOP ^(A)^(B)		3,555,601			3,555,601			3,519,962			3,461,825			3,442,411			3,410,374			3,410,374			3,377,856			3,324,734			3,311,931

Retail TV subscribers

Retail net subscriber activations (losses) ^(A)		6,053			421			4,842			2,350			(1,560	)		21,559			13,231			13,230			5,452			(10,354	)

IPTV		91,476			22,039			31,746			16,775			20,916			110,790			36,473			40,091			20,653			13,573

Satellite		(85,423	)		(21,618	)		(26,904	)		(14,425	)		(22,476	)		(89,231	)		(23,242	)		(26,861	)		(15,201	)		(23,927	)

Total retail subscribers EOP ^(A)		2,772,464			2,772,464			2,772,043			2,767,201			2,764,851			2,766,411			2,766,411			2,753,180			2,739,950			2,734,498

IPTV		1,767,182			1,767,182			1,745,143			1,713,397			1,696,622			1,675,706			1,675,706			1,639,233			1,599,142			1,578,489

Satellite		1,005,282			1,005,282			1,026,900			1,053,804			1,068,229			1,090,705			1,090,705			1,113,947			1,140,808			1,156,009

Retail network access services (NAS)

Retail residential NAS lines net losses ^(A)		(263,325	)		(58,110	)		(65,656	)		(72,780	)		(66,779	)		(258,881	)		(60,011	)		(73,241	)		(69,558	)		(56,071	)

Retail residential NAS lines ^(A)		2,697,483			2,697,483			2,755,593			2,821,249			2,894,029			2,960,808			2,960,808			3,020,819			3,094,060			3,163,618

^(A) As of January 1, 2019, we are no longer reporting wholesale subscribers in our Internet, TV and residential NAS subscriber bases reflecting our focus on the retail market.

Consequently, we restated previously reported 2018 subscribers for comparability.

BCE Supplementary Financial Information - Fourth Quarter 2019 Page 9

BCE ⁽²⁾

Net debt and other information


BCE - Net debt and preferred shares
(In millions of Canadian dollars, except where otherwise indicated) (unaudited)
	December 31 2019			September 30 2019			June 30 2019			March 31 2019			December 31 2018
Debt due within one year		3,881			4,728			5,676			5,485			4,645
Long-term debt		22,415			22,445			21,949			22,016			19,760
50% of preferred shares		2,002			2,002			2,002			2,002			2,002
Cash and cash equivalents		(145	)		(966	)		(1,094	)		(668	)		(425	)
Net debt ⁽⁴⁾		28,153			28,209			28,533			28,835			25,982

Net debt leverage ratio ^(4)(A)		2.79			2.82			2.90			2.98			2.72
Adjusted EBITDA /net interest expense ratio ⁽⁴⁾		8.54			8.64			8.71			8.80			9.00

^(A) Our net debt leverage ratio reflects a one-time increase due to the adoption of IFRS 16 which increased net debt by $2,304 million on January 1, 2019.


Cash flow information
(In millions of Canadian dollars, except where otherwise indicated) (unaudited)	Q4 2019			Q4 2018			$ change			% change		TOTAL 2019			TOTAL 2018			$ change			% change

Free cash flow (FCF) ⁽⁴⁾
Cash flows from operating activities		2,091			1,788			303			16.9%		7,958			7,384			574			7.8%
Capital expenditures		(1,153	)		(974	)		(179	)		(18.4%)		(3,988	)		(3,971	)		(17	)		(0.4%)
Cash dividends paid on preferred shares		(37	)		(46	)		9			19.6%		(147	)		(149	)		2			1.3%
Cash dividends paid by subsidiaries to non-controlling interest		(14	)		-			(14	)		n.m.		(65	)		(16	)		(49	)		n.m.
Acquisition and other costs paid		7			14			(7	)		(50.0%)		60			79			(19	)		(24.1%)
Voluntary defined benefit pension plan contribution		-			240			(240	)		(100.0%)		-			240			(240	)		(100.0%)
FCF		894			1,022			(128	)		(12.5%)		3,818			3,567			251			7.0%


Cash flow information - Historical trend
(In millions of Canadian dollars, except where otherwise indicated) (unaudited)	TOTAL 2019			Q4 2019			Q3 2019			Q2 2019			Q1 2019			TOTAL 2018			Q4 2018			Q3 2018			Q2 2018			Q1 2018

FCF
Cash flows from operating activities		7,958			2,091			2,258			2,093			1,516			7,384			1,788			2,043			2,057			1,496
Capital expenditures		(3,988	)		(1,153	)		(1,013	)		(972	)		(850	)		(3,971	)		(974	)		(1,010	)		(1,056	)		(931	)
Cash dividends paid on preferred shares		(147	)		(37	)		(47	)		(37	)		(26	)		(149	)		(46	)		(35	)		(35	)		(33	)
Cash dividends paid by subsidiaries to non-controlling interest		(65	)		(14	)		(12	)		(12	)		(27	)		(16	)		-			(3	)		-			(13	)
Acquisition and other costs paid		60			7			3			21			29			79			14			19			28			18
Voluntary defined benefit pension plan contribution		-			-			-			-			-			240			240			-			-			-
FCF		3,818			894			1,189			1,093			642			3,567			1,022			1,014			994			537

n.m. : not meaningful

BCE Supplementary Financial Information - Fourth Quarter 2019 Page 10

BCE ⁽²⁾

Consolidated Statements of Financial Position


(In millions of Canadian dollars, except where otherwise indicated) (unaudited)	December 31 2019			September 30 2019			June 30 2019			March 31 2019			December 31 2018
*ASSETS*
Current assets
Cash		141			919			719			546			425
Cash equivalents		4			47			375			122			-
Trade and other receivables		3,038			2,866			2,978			2,937			3,006
Inventory		427			483			487			472			432
Contract assets		1,111			1,049			1,005			978			987
Contract costs		415			395			387			383			370
Prepaid expenses		194			270			349			350			244
Other current assets		190			226			189			246			329
Total current assets		5,520			6,255			6,489			6,034			5,793
Non-current assets
Contract assets		533			495			476			477			506
Contract costs		368			348			350			331			337
Property, plant and equipment		27,636			27,379			27,415			27,276			24,844
Intangible assets		13,352			13,463			13,232			13,269			13,205
Deferred tax assets		98			140			137			129			112
Investments in associates and joint ventures		698			706			740			803			798
Other non-current assets		1,442			1,171			700			864			847
Goodwill		10,667			10,669			10,674			10,657			10,658
Total non-current assets		54,794			54,371			53,724			53,806			51,307
Total assets		60,314			60,626			60,213			59,840			57,100
*LIABILITIES*
Current liabilities
Trade payables and other liabilities		3,954			3,650			3,720			3,610			3,941
Contract liabilities		683			681			708			733			703
Interest payable		227			207			215			203			196
Dividends payable		729			728			736			735			691
Current tax liabilities		303			383			287			218			253
Debt due within one year		3,881			4,728			5,676			5,485			4,645
Total current liabilities		9,777			10,377			11,342			10,984			10,429
Non-current liabilities
Contract liabilities		207			206			219			204			196
Long-term debt		22,415			22,445			21,949			22,016			19,760
Deferred tax liabilities		3,606			3,425			3,146			3,159			3,163
Post-employment benefit obligations		1,907			2,038			2,158			1,998			1,866
Other non-current liabilities		871			872			938			941			997
Total non-current liabilities		29,006			28,986			28,410			28,318			25,982
Total liabilities		38,783			39,363			39,752			39,302			36,411

*EQUITY*
Equity attributable to BCE shareholders
Preferred shares		4,004			4,004			4,004			4,004			4,004
Common shares		20,363			20,350			20,144			20,067			20,036
Contributed surplus		1,178			1,167			1,165			1,153			1,170
Accumulated other comprehensive income		161			141			14			20			90
Deficit		(4,509	)		(4,735	)		(5,195	)		(5,015	)		(4,937	)
Total equity attributable to BCE shareholders		21,197			20,927			20,132			20,229			20,363
Non-controlling interest		334			336			329			309			326
Total equity		21,531			21,263			20,461			20,538			20,689
Total liabilities and equity		60,314			60,626			60,213			59,840			57,100
Number of common shares outstanding (millions)		903.9			903.7			900.1			898.8			898.2

BCE Supplementary Financial Information - Fourth Quarter 2019 Page 11

BCE ⁽²⁾

Consolidated Cash Flow Data


(In millions of Canadian dollars, except where otherwise indicated) (unaudited)	Q4 2019			Q4 2018			$ change			TOTAL 2019			TOTAL 2018			$ change

Net earnings		723			642			81			3,253			2,973			280
Adjustments to reconcile net earnings to cash flows from operating activities
Severance, acquisition and other costs		28			58			(30	)		114			136			(22	)
Depreciation and amortization		1,093			1,015			78			4,398			4,014			384
Post-employment benefit plans cost		76			83			(7	)		310			335			(25	)
Net interest expense		282			255			27			1,108			987			121
Losses on investments		(17	)		34			(51	)		(13	)		34			(47	)
Income taxes		243			244			(1	)		1,133			995			138
Contributions to post-employment benefit plans		(77	)		(309	)		232			(290	)		(539	)		249
Payments under other post-employment benefit plans		(18	)		(17	)		(1	)		(72	)		(75	)		3
Severance and other costs paid		(23	)		(43	)		20			(168	)		(138	)		(30	)
Interest paid		(264	)		(295	)		31			(1,087	)		(990	)		(97	)
Income taxes paid (net of refunds)		(221	)		(92	)		(129	)		(725	)		(650	)		(75	)
Acquisition and other costs paid		(7	)		(14	)		7			(60	)		(79	)		19
Net change in operating assets and liabilities		273			227			46			57			381			(324	)
Cash flows from operating activities		2,091			1,788			303			7,958			7,384			574
Capital expenditures		(1,153	)		(974	)		(179	)		(3,988	)		(3,971	)		(17	)
Cash dividends paid on preferred shares		(37	)		(46	)		9			(147	)		(149	)		2
Cash dividends paid by subsidiaries to non-controlling interest		(14	)		-			(14	)		(65	)		(16	)		(49	)
Acquisition and other costs paid		7			14			(7	)		60			79			(19	)
Voluntary defined benefit pension plan contribution		-			240			(240	)		-			240			(240	)
Free cash flow		894			1,022			(128	)		3,818			3,567			251
Business acquisitions		-			-			-			(51	)		(395	)		344
Acquisition and other costs paid		(7	)		(14	)		7			(60	)		(79	)		19
Voluntary defined benefit pension plan contribution		-			(240	)		240			-			(240	)		240
Acquisition of spectrum licences		-			(1	)		1			-			(56	)		56
Disposition of intangibles and other assets		-			-			-			-			68			(68	)
Other investing activities		(9	)		32			(41	)		3			(32	)		35
Decrease in notes payable		(851	)		(133	)		(718	)		(1,073	)		(123	)		(950	)
Increase (decrease) in securitized trade receivables		100			-			100			131			(2	)		133
Issue of long-term debt		-			-			-			1,954			2,996			(1,042	)
Repayment of long-term debt		(199	)		(338	)		139			(2,228	)		(2,713	)		485
Issue of common shares		15			8			7			240			11			229
Repurchase of common shares		-			-			-			-			(175	)		175
Purchase of shares for settlement of share-based payments		(42	)		(46	)		4			(142	)		(222	)		80
Cash dividends paid on common shares		(716	)		(677	)		(39	)		(2,819	)		(2,679	)		(140	)
Return of capital to non-controlling interest		-			-			-			-			(51	)		51
Other financing activities		(6	)		(14	)		8			(53	)		(75	)		22
		(1,715	)		(1,423	)		(292	)		(4,098	)		(3,767	)		(331	)
Net decrease in cash and cash equivalents		(821	)		(401	)		(420	)		(280	)		(200	)		(80	)
Cash and cash equivalents at beginning of period		966			826			140			425			625			(200	)
Cash and cash equivalents at end of period		145			425			(280	)		145			425			(280	)

BCE Supplementary Financial Information - Fourth Quarter 2019 Page 12

BCE

Consolidated Cash Flow Data - Historical Trend


(In millions of Canadian dollars, except where otherwise indicated) (unaudited)	TOTAL 2019			Q4 19			Q3 19			Q2 19			Q1 19			TOTAL 2018			Q4 18			Q3 18			Q2 18			Q1 18
Net earnings		3,253			723			922			817			791			2,973			642			867			755			709
Adjustments to reconcile net earnings to cash flows from operating activities
Severance, acquisition and other costs		114			28			23			39			24			136			58			54			24			-
Depreciation and amortization		4,398			1,093			1,091			1,111			1,103			4,014			1,015			999			1,008			992
Post-employment benefit plans cost		310			76			76			73			85			335			83			82			80			90
Net interest expense		1,108			282			275			273			278			987			255			251			243			238
Losses on investments		(13	)		(17	)		-			-			4			34			34			-			-			-
Income taxes		1,133			243			321			276			293			995			244			224			292			235
Contributions to post-employment benefit plans		(290	)		(77	)		(62	)		(70	)		(81	)		(539	)		(309	)		(69	)		(74	)		(87	)
Payments under other post-employment benefit plans		(72	)		(18	)		(17	)		(19	)		(18	)		(75	)		(17	)		(20	)		(19	)		(19	)
Severance and other costs paid		(168	)		(23	)		(46	)		(33	)		(66	)		(138	)		(43	)		(27	)		(33	)		(35	)
Interest paid		(1,087	)		(264	)		(286	)		(270	)		(267	)		(990	)		(295	)		(207	)		(252	)		(236	)
Income taxes paid (net of refunds)		(725	)		(221	)		(88	)		(127	)		(289	)		(650	)		(92	)		(161	)		(113	)		(284	)
Acquisition and other costs paid		(60	)		(7	)		(3	)		(21	)		(29	)		(79	)		(14	)		(19	)		(28	)		(18	)
Net change in operating assets and liabilities		57			273			52			44			(312	)		381			227			69			174			(89	)
Cash flows from operating activities		7,958			2,091			2,258			2,093			1,516			7,384			1,788			2,043			2,057			1,496
Capital expenditures		(3,988	)		(1,153	)		(1,013	)		(972	)		(850	)		(3,971	)		(974	)		(1,010	)		(1,056	)		(931	)
Cash dividends paid on preferred shares		(147	)		(37	)		(47	)		(37	)		(26	)		(149	)		(46	)		(35	)		(35	)		(33	)
Cash dividends paid by subsidiaries to non-controlling interest		(65	)		(14	)		(12	)		(12	)		(27	)		(16	)		-			(3	)		-			(13	)
Acquisition and other costs paid		60			7			3			21			29			79			14			19			28			18
Voluntary defined benefit pension plan contribution		-			-			-			-			-			240			240			-			-			-
Free cash flow		3,818			894			1,189			1,093			642			3,567			1,022			1,014			994			537
Business acquisitions		(51	)		-			(1	)		(50	)		-			(395	)		-			(151	)		(21	)		(223	)
Acquisition and other costs paid		(60	)		(7	)		(3	)		(21	)		(29	)		(79	)		(14	)		(19	)		(28	)		(18	)
Voluntary defined benefit pension plan contribution		-			-			-			-			-			(240	)		(240	)		-			-			-
Acquisition of spectrum licences		-			-			-			-			-			(56	)		(1	)		(19	)		-			(36	)
Disposition of intangibles and other assets		-			-			-			-			-			68			-			-			-			68
Other investing activities		3			(9	)		4			32			(24	)		(32	)		32			(9	)		(20	)		(35	)
(Decrease) increase in notes payable		(1,073	)		(851	)		(1,066	)		277			567			(123	)		(133	)		(30	)		97			(57	)
Increase (decrease) in securitized trade receivables		131			100			-			-			31			(2	)		-			-			(2	)		-
Issue of long-term debt		1,954			-			549			1,405			-			2,996			-			1,530			-			1,466
Repayment of long-term debt		(2,228	)		(199	)		(226	)		(1,599	)		(204	)		(2,713	)		(338	)		(1,134	)		(1,068	)		(173	)
Issue of common shares		240			15			161			44			20			11			8			1			1			1
Repurchase of common shares		-			-			-			-			-			(175	)		-			-			-			(175	)
Purchase of shares for settlement of share-based payments		(142	)		(42	)		(14	)		(10	)		(76	)		(222	)		(46	)		(39	)		(49	)		(88	)
Cash dividends paid on common shares		(2,819	)		(716	)		(713	)		(712	)		(678	)		(2,679	)		(677	)		(678	)		(678	)		(646	)
Return of capital to non-controlling interest		-			-			-			-			-			(51	)		-			(10	)		(12	)		(29	)
Other financing activities		(53	)		(6	)		(8	)		(33	)		(6	)		(75	)		(14	)		(20	)		(23	)		(18	)
		(4,098	)		(1,715	)		(1,317	)		(667	)		(399	)		(3,767	)		(1,423	)		(578	)		(1,803	)		37
Net (decrease) increase in cash and cash equivalents		(280	)		(821	)		(128	)		426			243			(200	)		(401	)		436			(809	)		574
Cash and cash equivalents at beginning of period		425			966			1,094			668			425			625			826			390			1,199			625
Cash and cash equivalents at end of period		145			145			966			1,094			668			425			425			826			390			1,199

BCE Supplementary Financial Information - Fourth Quarter 2019 Page 13


				Accompanying Notes

(1)	Our results are reported in three segments: Bell Wireless, Bell Wireline and Bell Media. Our segments reflect how we manage our business and how we classify our operations for planning and measuring performance.

Throughout this report, we, us, our, BCE and the company 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.

(2)

As required, we adopted International Financial Reporting Standard (IFRS) 16 - Leases effective January 1, 2019. We adopted IFRS 16 using a modified retrospective approach whereby the financial statements of prior periods presented were not restated and continue to be reported under International Accounting Standard (IAS) 17 - Leases, as permitted by the specific transition provisions of IFRS 16. The cumulative effect of the initial adoption of IFRS 16 was reflected as an adjustment to the deficit at January 1, 2019. For further details, see Note 3, Note 14 and Note 16, Adoption of IFRS 16, respectively, of the Q1 2019, Q2 2019 and Q3 2019 interim financial statements.

Under IFRS 16, most leases are recognized on the statement of financial position as right-of-use assets within property, plant and equipment, with a corresponding lease liability within debt. Under IFRS 16, expenses related to these leases are recorded in depreciation and interest expense, whereas under IAS 17, operating lease expenses were recorded in operating costs. Under IFRS 16, repayments of principal for these leases are recorded in repayment of long-term debt within cash flows from financing activities and the interest component is recorded in interest paid within cash flows from operating activities. Previously, under IAS 17, operating lease payments were recorded within cash flows from operating activities.

(3)

To align with changes in how we manage our business and assess performance, the operating results of The Source (Bell) Electronics Inc. (The Source) are now entirely included within our Wireless segment effective January 1, 2019, with prior periods restated for comparative purposes. Previously, The Source’s results were included within our Wireless and Wireline segments.

(4)	Non-GAAP Financial Measures

Adjusted EBITDA and adjusted EBITDA margin

The terms adjusted EBITDA and adjusted EBITDA margin do not have any standardized meaning under 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.

BCE Supplementary Financial Information – Fourth Quarter 2019 Page 14

Adjusted EBITDA and adjusted EBITDA margin have no directly comparable IFRS financial measure. Alternatively, adjusted EBITDA may be reconciled to net earnings as shown in this document.

Adjusted net earnings and adjusted earnings per share (EPS)

The terms adjusted net earnings and adjusted EPS do not have any standardized meaning under IFRS. Therefore, they are unlikely to be comparable to similar measures presented by other issuers.

We define adjusted net earnings as net earnings attributable to common shareholders before severance, acquisition and other costs, net 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.


		BCE Supplementary Financial Information – Fourth Quarter 2019 Page 15

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.

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 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. 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 90 days (previously 120 to 150 days) following the expiry of the subscriber’s prepaid balance.


		BCE Supplementary Financial Information – Fourth Quarter 2019 Page 16

Wireline subscriber unit consists of an active revenue-generating unit with access to our services, including retail 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.

●

Retail Internet, IPTV and satellite TV subscribers have access to stand-alone services, and are primarily represented by a dwelling unit

●

Retail NAS subscribers are based on a line count and are represented by a unique telephone number


		BCE Supplementary Financial Information – Fourth Quarter 2019 Page 17