SUPPLEMENTARY FINANCIAL INFORMATION

EX-99.3 4 d792312dex993.htm SUPPLEMENTARY FINANCIAL INFORMATION - THIRD QUARTER 2023 SUPPLEMENTARY FINANCIAL INFORMATION - THIRD QUARTER 2023

Exhibit 99.3




Q3		Supplementary Financial Information Third Quarter 2023

BCE Investor Relations

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Thane Fotopoulos

514-870-4619

thane.fotopoulos@bell.ca

BCE ⁽¹⁾

Consolidated Operational Data


(In millions of Canadian dollars, except share amounts) (unaudited)	Q3 2023			Q3 2022			$ change			% change		YTD 2023			YTD 2022			$ change			% change
Operating revenues
Service		5,281			5,193			88			1.7%		15,806			15,603			203			1.3%
Product		799			831			(32	)		(3.9%)		2,394			2,132			262			12.3%
Total operating revenues		6,080			6,024			56			0.9%		18,200			17,735			465			2.6%
Operating costs		(3,413	)		(3,436	)		23			0.7%		(10,350	)		(9,973	)		(377	)		(3.8%)
Adjusted EBITDA ^(A)		2,667			2,588			79			3.1%		7,850			7,762			88			1.1%

*Adjusted EBITDA margin* ^(B)(3)		*43.9%*			43.0%						0.9 pts		*43.1%*			43.8%						(0.7) pts
Severance, acquisition and other costs		(10	)		(22	)		12			54.5%		(159	)		(75	)		(84	)		n.m.
Depreciation		(937	)		(914	)		(23	)		(2.5%)		(2,791	)		(2,738	)		(53	)		(1.9%)
Amortization		(295	)		(267	)		(28	)		(10.5%)		(874	)		(793	)		(81	)		(10.2%)
Finance costs
Interest expense		(373	)		(298	)		(75	)		(25.2%)		(1,076	)		(827	)		(249	)		(30.1%)
Net return on post-employment benefit plans		27			13			14			n.m.		81			38			43			n.m.
Impairment of assets		-			(21	)		21			100.0%		(34	)		(129	)		95			73.6%
Other expense		(129	)		(130	)		1			0.8%		(319	)		(134	)		(185	)		n.m.
Income taxes		(243	)		(178	)		(65	)		(36.5%)		(786	)		(745	)		(41	)		(5.5%)
Net earnings		707			771			(64	)		(8.3%)		1,892			2,359			(467	)		(19.8%)

Net earnings attributable to:
Common shareholders		640			715			(75	)		(10.5%)		1,694			2,188			(494	)		(22.6%)
Preferred shareholders		47			39			8			20.5%		139			108			31			28.7%
Non-controlling interest		20			17			3			17.6%		59			63			(4	)		(6.3%)
Net earnings		707			771			(64	)		(8.3%)		1,892			2,359			(467	)		(19.8%)

Net earnings per common share - basic and diluted	$	0.70		$	0.78		$	(0.08	)		(10.3%)	$	1.86		$	2.40		$	(0.54	)		(22.5%)

Dividends per common share	$	0.9675		$	0.9200		$	0.0475			5.2%	$	2.9025		$	2.7600		$	0.1425			5.2%

Weighted average number of common shares outstanding - basic (millions)		912.3			911.9								912.2			911.3
Weighted average number of common shares outstanding - diluted (millions)		912.3			912.3								912.3			911.9
Number of common shares outstanding (millions)		912.3			911.9								912.3			911.9

Adjusted net earnings and adjusted EPS
Net earnings attributable to common shareholders		640			715			(75	)		(10.5%)		1,694			2,188			(494	)		(22.6%)

Reconciling items:

Severance, acquisition and other costs		10			22			(12	)		(54.5%)		159			75			84			n.m.
Net mark-to-market losses on derivatives used to economically hedge equity settled share-based compensation plans		128			74			54			73.0%		109			80			29			36.3%
Net equity losses on investment in associates and joint ventures		-			-			-			-		377			42			335			n.m.
Net losses (gains) on investments		1			-			1			n.m.		(78	)		(53	)		(25	)		(47.2%)
Early debt redemption costs		-			-			-			-		1			18			(17	)		(94.4%)
Impairment of assets		-			21			(21	)		(100.0%)		34			129			(95	)		(73.6%)
Income taxes for the above reconciling items		(38	)		(31	)		(7	)		(22.6%)		(61	)		(80	)		19			23.8%

Non-controlling interest (NCI) for the above reconciling items		-			-			-			-		-			4			(4	)		(100.0%)

Adjusted net earnings ^(A)		741			801			(60	)		(7.5%)		2,235			2,403			(168	)		(7.0%)

Adjusted EPS ^(A)	$	0.81		$	0.88		$	(0.07	)		(8.0%)	$	2.45		$	2.64		$	(0.19	)		(7.2%)

n.m. : not meaningful

^(A)

Adjusted EBITDA is a total of segments measure, adjusted net earnings is a non-GAAP financial measure and adjusted EPS is a non-GAAP ratio. Refer to note 2.3, Total of segments measures, note 2.1, Non-GAAP financial measures and note 2.2, Non-GAAP ratios in the Accompanying Notes to this report for more information on these measures.

^(B)	Adjusted EBITDA margin is defined as adjusted EBITDA divided by operating revenues.

BCE Supplementary Financial Information - Third Quarter 2023 Page 2

BCE

Consolidated Operational Data - Historical Trend


(In millions of Canadian dollars, except share amounts) (unaudited)	YTD 2023			Q3 23			Q2 23			Q1 23			TOTAL 2022			Q4 22			Q3 22			Q2 22			Q1 22
Operating revenues
Service		15,806			5,281			5,303			5,222			20,956			5,353			5,193			5,233			5,177
Product		2,394			799			763			832			3,218			1,086			831			628			673
Total operating revenues		18,200			6,080			6,066			6,054			24,174			6,439			6,024			5,861			5,850
Operating costs		(10,350	)		(3,413	)		(3,421	)		(3,516	)		(13,975	)		(4,002	)		(3,436	)		(3,271	)		(3,266	)
Adjusted EBITDA		7,850			2,667			2,645			2,538			10,199			2,437			2,588			2,590			2,584
*Adjusted EBITDA margin*		*43.1%*			*43.9%*			43.6%			41.9%			42.2%			37.8%			43.0%			44.2%			44.2%
Severance, acquisition and other costs		(159	)		(10	)		(100	)		(49	)		(94	)		(19	)		(22	)		(40	)		(13	)
Depreciation		(2,791	)		(937	)		(936	)		(918	)		(3,660	)		(922	)		(914	)		(933	)		(891	)
Amortization		(874	)		(295	)		(296	)		(283	)		(1,063	)		(270	)		(267	)		(266	)		(260	)
Finance costs
Interest expense		(1,076	)		(373	)		(359	)		(344	)		(1,146	)		(319	)		(298	)		(269	)		(260	)
Net return on post-employment benefit plans		81			27			27			27			51			13			13			7			18
Impairment of assets		(34	)		-			-			(34	)		(279	)		(150	)		(21	)		(106	)		(2	)
Other (expense) income		(319	)		(129	)		(311	)		121			(115	)		19			(130	)		(97	)		93
Income taxes		(786	)		(243	)		(273	)		(270	)		(967	)		(222	)		(178	)		(232	)		(335	)
Net earnings		1,892			707			397			788			2,926			567			771			654			934

Net earnings attributable to:
Common shareholders		1,694			640			329			725			2,716			528			715			596			877
Preferred shareholders		139			47			46			46			152			44			39			35			34
Non-controlling interest		59			20			22			17			58			(5	)		17			23			23
Net earnings		1,892			707			397			788			2,926			567			771			654			934

Net earnings per common share - basic and diluted	$	1.86		$	0.70		$	0.37		$	0.79		$	2.98		$	0.58		$	0.78		$	0.66		$	0.96

Dividends per common share	$	2.9025		$	0.9675		$	0.9675		$	0.9675		$	3.6800		$	0.9200		$	0.9200		$	0.9200		$	0.9200

Weighted average number of common shares outstanding - basic (millions)		912.2			912.3			912.2			912.1			911.5			912.0			911.9			911.9			910.1
Weighted average number of common shares outstanding - diluted (millions)		912.3			912.3			912.5			912.3			912.0			912.2			912.3			912.8			910.8
Number of common shares outstanding (millions)		912.3			912.3			912.3			912.2			912.0			912.0			911.9			911.9			911.8

Adjusted net earnings and adjusted EPS
Net earnings attributable to common shareholders		1,694			640			329			725			2,716			528			715			596			877
Reconciling items:
Severance, acquisition and other costs		159			10			100			49			94			19			22			40			13
Net mark-to-market losses (gains) on derivatives used to economically hedge equity settled share-based compensation plans		109			128			(1	)		(18	)		53			(27	)		74			81			(75	)
Net equity losses on investments in associates and joint ventures		377			-			377			-			42			-			-			42			-
Net (gains) losses on investments		(78	)		1			(79	)		-			(24	)		29			-			(16	)		(37	)
Early debt redemption costs		1			-			1			-			18			-			-			-			18
Impairment of assets		34			-			-			34			279			150			21			106			2
Income taxes for the above reconciling items		(61	)		(38	)		(5	)		(18	)		(117	)		(37	)		(31	)		(62	)		13
NCI for the above reconciling items		-			-			-			-			(4	)		(8	)		-			4			-
Adjusted net earnings		2,235			741			722			772			3,057			654			801			791			811
Adjusted EPS	$	2.45		$	0.81		$	0.79		$	0.85		$	3.35		$	0.71		$	0.88		$	0.87		$	0.89

BCE Supplementary Financial Information - Third Quarter 2023 Page 3

BCE ⁽¹⁾

Segmented Data


(In millions of Canadian dollars, except where otherwise indicated) (unaudited)	Q3 2023			Q3 2022			$ change			% change		YTD 2023			YTD 2022			$ change			% change

Operating revenues
Bell Communication and Technology Services (Bell CTS)		5,461			5,401			60			1.1%		16,182			15,652			530			3.4%
Bell Media		710			719			(9	)		(1.3%)		2,295			2,365			(70	)		(3.0%)
Inter-segment eliminations		(91	)		(96	)		5			5.2%		(277	)		(282	)		5			1.8%
Total		6,080			6,024			56			0.9%		18,200			17,735			465			2.6%

Operating costs
Bell CTS		(2,997	)		(2,995	)		(2	)		(0.1%)		(8,881	)		(8,506	)		(375	)		(4.4%)
Bell Media		(507	)		(537	)		30			5.6%		(1,746	)		(1,749	)		3			0.2%
Inter-segment eliminations		91			96			(5	)		(5.2%)		277			282			(5	)		(1.8%)
Total		(3,413	)		(3,436	)		23			0.7%		(10,350	)		(9,973	)		(377	)		(3.8%)

Adjusted EBITDA
Bell CTS		2,464			2,406			58			2.4%		7,301			7,146			155			2.2%
Margin		*45.1%*			44.5%						0.6 pts		*45.1%*			45.7%						(0.6) pts
Bell Media		203			182			21			11.5%		549			616			(67	)		(10.9%)
Margin		*28.6%*			25.3%						3.3 pts		*23.9%*			26.0%						(2.1) pts
Total		2,667			2,588			79			3.1%		7,850			7,762			88			1.1%
Margin		*43.9%*			43.0%						0.9 pts		*43.1%*			43.8%						(0.7) pts

Capital expenditures
Bell CTS		1,123			1,286			163			12.7%		3,446			3,412			(34	)		(1.0%)
Capital intensity ^(A)(3)		*20.6%*			23.8%						3.2 pts		*21.3%*			21.8%						0.5 pts

Bell Media		36			31			(5	)		(16.1%)		106			83			(23	)		(27.7%)
Capital intensity		*5.1%*			4.3%						(0.8) pts		*4.6%*			3.5%						(1.1) pts
Total		1,159			1,317			158			12.0%		3,552			3,495			(57	)		(1.6%)
Capital intensity		*19.1%*			21.9%						2.8 pts		*19.5%*			19.7%						0.2 pts

^(A) Capital intensity is defined as capital expenditures divided by operating revenues.

BCE Supplementary Financial Information - Third Quarter 2023 Page 4

BCE

Segmented Data - Historical Trend


(In millions of Canadian dollars, except where otherwise indicated) (unaudited)	YTD 2023		Q3 23		Q2 23		Q1 23		TOTAL 2022		Q4 22		Q3 22		Q2 22		Q1 22

Operating revenues
Bell CTS	16,182		5,461		5,354		5,367		21,301		5,649		5,401		5,135		5,116
Bell Media	2,295		710		805		780		3,254		889		719		821		825
Inter-segment eliminations	(277	)	(91	)	(93	)	(93	)	(381	)	(99	)	(96	)	(95	)	(91	)
Total	18,200		6,080		6,066		6,054		24,174		6,439		6,024		5,861		5,850

Operating costs
Bell CTS	(8,881	)	(2,997	)	(2,923	)	(2,961	)	(11,847	)	(3,341	)	(2,995	)	(2,771	)	(2,740	)
Bell Media	(1,746	)	(507	)	(591	)	(648	)	(2,509	)	(760	)	(537	)	(595	)	(617	)
Inter-segment eliminations	277		91		93		93		381		99		96		95		91
Total	(10,350	)	(3,413	)	(3,421	)	(3,516	)	(13,975	)	(4,002	)	(3,436	)	(3,271	)	(3,266	)

Adjusted EBITDA
Bell CTS	7,301		2,464		2,431		2,406		9,454		2,308		2,406		2,364		2,376
Margin	*45.1%*		*45.1%*		45.4%		44.8%		44.4%		40.9%		44.5%		46.0%		46.4%
Bell Media	549		203		214		132		745		129		182		226		208
Margin	*23.9%*		*28.6%*		26.6%		16.9%		22.9%		14.5%		25.3%		27.5%		25.2%
Total	7,850		2,667		2,645		2,538		10,199		2,437		2,588		2,590		2,584
Margin	*43.1%*		*43.9%*		43.6%		41.9%		42.2%		37.8%		43.0%		44.2%		44.2%

Capital expenditures
Bell CTS	3,446		1,123		1,271		1,052		4,971		1,559		1,286		1,190		936
Capital intensity	*21.3%*		*20.6%*		23.7%		19.6%		23.3%		27.6%		23.8%		23.2%		18.3%
Bell Media	106		36		36		34		162		79		31		29		23
Capital intensity	*4.6%*		*5.1%*		4.5%		4.4%		5.0%		8.9%		4.3%		3.5%		2.8%
Total	3,552		1,159		1,307		1,086		5,133		1,638		1,317		1,219		959
Capital intensity	*19.5%*		*19.1%*		21.5%		17.9%		21.2%		25.4%		21.9%		20.8%		16.4%

BCE Supplementary Financial Information - Third Quarter 2023 Page 5

Bell CTS ⁽¹⁾


(In millions of Canadian dollars, except where otherwise indicated) (unaudited)	Q3 2023			Q3 2022			% change		YTD 2023			YTD 2022			% change
Bell CTS
Operating revenues
Wireless		1,828			1,759			3.9%		5,317			5,086			4.5%
Wireline data		2,032			1,987			2.3%		6,054			5,914			2.4%
Wireline voice		717			739			(3.0%)		2,165			2,266			(4.5%)
Other wireline services		78			77			1.3%		231			232			(0.4%)
External service revenues		4,655			4,562			2.0%		13,767			13,498			2.0%
Inter-segment service revenues		7			8			(12.5%)		21			22			(4.5%)
Operating service revenues		4,662			4,570			2.0%		13,788			13,520			2.0%
Wireless		672			692			(2.9%)		1,924			1,797			7.1%
Wireline		127			139			(8.6%)		470			335			40.3%
External/Operating product revenues		799			831			(3.9%)		2,394			2,132			12.3%
Total external revenues		5,454			5,393			1.1%		16,161			15,630			3.4%
Total operating revenues		5,461			5,401			1.1%		16,182			15,652			3.4%
Operating costs		(2,997	)		(2,995	)		(0.1%)		(8,881	)		(8,506	)		(4.4%)
Adjusted EBITDA		2,464			2,406			2.4%		7,301			7,146			2.2%
Adjusted EBITDA margin		*45.1%*			44.5%			0.6 pts		*45.1%*			45.7%			(0.6) pts

Capital expenditures		1,123			1,286			12.7%		3,446			3,412			(1.0%)
Capital intensity		*20.6%*			23.8%			3.2 pts		*21.3%*			21.8%			0.5 pts

BCE Supplementary Financial Information - Third Quarter 2023 Page 6

Bell CTS - Historical Trend


(In millions of Canadian dollars, except where otherwise indicated) (unaudited)	YTD 2023			Q3 23			Q2 23			Q1 23			TOTAL 2022			Q4 22			Q3 22			Q2 22			Q1 22
Bell CTS
Operating revenues
Wireless		5,317			1,828			1,766			1,723			6,821			1,735			1,759			1,692			1,635
Wireline data		6,054			2,032			2,021			2,001			7,920			2,006			1,987			1,974			1,953
Wireline voice		2,165			717			722			726			3,002			736			739			756			771
Other wireline services		231			78			75			78			309			77			77			78			77
External service revenues		13,767			4,655			4,584			4,528			18,052			4,554			4,562			4,500			4,436
Inter-segment service revenues		21			7			7			7			31			9			8			7			7
Operating service revenues		13,788			4,662			4,591			4,535			18,083			4,563			4,570			4,507			4,443
Wireless		1,924			672			626			626			2,714			917			692			542			563
Wireline		470			127			137			206			504			169			139			86			110
External/Operating product revenues		2,394			799			763			832			3,218			1,086			831			628			673
Total external revenues		16,161			5,454			5,347			5,360			21,270			5,640			5,393			5,128			5,109
Total operating revenues		16,182			5,461			5,354			5,367			21,301			5,649			5,401			5,135			5,116
Operating costs		(8,881	)		(2,997	)		(2,923	)		(2,961	)		(11,847	)		(3,341	)		(2,995	)		(2,771	)		(2,740	)
Adjusted EBITDA		7,301			2,464			2,431			2,406			9,454			2,308			2,406			2,364			2,376
Adjusted EBITDA margin		*45.1%*			*45.1%*			45.4%			44.8%			44.4%			40.9%			44.5%			46.0%			46.4%

Capital expenditures		3,446			1,123			1,271			1,052			4,971			1,559			1,286			1,190			936
Capital intensity		*21.3%*			*20.6%*			23.7%			19.6%			23.3%			27.6%			23.8%			23.2%			18.3%

BCE Supplementary Financial Information - Third Quarter 2023 Page 7

Bell CTS Metrics ⁽¹⁾


(In millions of Canadian dollars, except where otherwise indicated) (unaudited)	Q3 2023			Q3 2022			% change		YTD 2023			YTD 2022			% change
Mobile phone subscribers⁽³⁾
Gross subscriber activations		603,770			583,700			3.4%		1,512,245			1,348,878			12.1%
Postpaid		423,364			391,165			8.2%		1,043,719			888,478			17.5%
Prepaid		180,406			192,535			(6.3%)		468,526			460,400			1.8%
Net subscriber activations		166,930			224,343			(25.6%)		319,104			367,280			(13.1%)
Postpaid		142,886			167,798			(14.8%)		297,457			285,225			4.3%
Prepaid		24,044			56,545			(57.5%)		21,647			82,055			(73.6%)

Subscribers end of period (EOP)^(C)		10,194,961			9,826,465			3.8%		10,194,961			9,826,465			3.8%

Postpaid^(C)		9,294,115			8,915,270			4.2%		9,294,115			8,915,270			4.2%

Prepaid		900,846			911,195			(1.1%)		900,846			911,195			(1.1%)

Blended average revenue per user (ARPU) ($/month)^(B)(3)		60.28			60.39			(0.2%)		59.21			59.07			0.2%
Blended churn (%) (average per month)⁽³⁾		1.45%			1.24%			(0.21) pts		1.34%			1.15%			(0.19) pts
Postpaid		1.10%			0.90%			(0.20) pts		0.98%			0.82%			(0.16) pts
Prepaid		5.10%			4.58%			(0.52) pts		5.02%			4.53%			(0.49) pts
Mobile connected device subscribers⁽³⁾
Net subscriber activations		64,282			49,044			31.1%		214,561			97,577			n.m.

Subscribers EOP^(C)		2,653,802			2,347,371			13.1%		2,653,802			2,347,371			13.1%
Retail high-speed Internet subscribers⁽³⁾
Retail net subscriber activations		79,327			89,652			(11.5%)		131,535			138,296			(4.9%)

Retail subscribers EOP^(A)(D)(E)		4,417,838			4,067,039			8.6%		4,417,838			4,067,039			8.6%
Retail TV subscribers⁽³⁾

Retail net subscriber activations (losses)		4,222			10,853			(61.1%)		(24,131	)		(9,035	)		n.m.

Internet protocol television (IPTV)		35,976			38,093			(5.6%)		58,381			54,191			7.7%

Satellite		(31,754	)		(27,240	)		(16.6%)		(82,512	)		(63,226	)		(30.5%)

Total retail subscribers EOP^(A)(E)		2,727,610			2,735,000			(0.3%)		2,727,610			2,735,000			(0.3%)

IPTV^(A)(E)		2,046,805			1,945,657			5.2%		2,046,805			1,945,657			5.2%

Satellite		680,805			789,343			(13.8%)		680,805			789,343			(13.8%)
Retail residential network access services (NAS)⁽³⁾

Retail residential NAS lines net losses		(41,776	)		(42,853	)		2.5%		(138,265	)		(137,910	)		(0.3%)

Retail residential NAS lines^(A)(E)		2,059,964			2,164,151			(4.8%)		2,059,964			2,164,151			(4.8%)

n.m. : not meaningful

^(A)	In Q2 2023, our retail high-speed Internet, retail IPTV and retail residential NAS lines subscriber bases increased by 35,080, 243 and 7,458 subscribers, respectively, as a result of small acquisitions.

^(B)

Effective Q1 2023, as a result of the segment reporting changes impacting intersegment eliminations, ARPU has been updated and is defined as Bell CTS wireless external services revenues (previously wireless operating service revenues) divided by the average mobile phone subscriber base for the specified period, expressed as a dollar unit per month.

^(C)	In Q1 2023, we adjusted our mobile phone postpaid and mobile connected device subscriber bases to remove older non-revenue generating business subscribers of 73,229 and 12,577, respectively.

^(D)	In Q1 2023, subsequent to a review of customer account records, our retail high-speed Internet subscriber base was reduced by 7,347 subscribers.

^(E)	In Q4 2022, as a result of the acquisition of Distributel Communications Limited (Distributel), our retail high-speed Internet, retail IPTV and retail residential NAS lines subscriber bases increased by 128,065, 2,315 and 64,498 subscribers, respectively.

BCE Supplementary Financial Information - Third Quarter 2023 Page 8

Bell CTS Metrics - Historical Trend


(In millions of Canadian dollars, except where otherwise indicated) (unaudited)	YTD 2023			Q3 23			Q2 23			Q1 23			TOTAL 2022			Q4 22			Q3 22			Q2 22			Q1 22
Mobile phone subscribers
Gross subscriber activations		1,512,245			603,770			502,940			405,535			1,953,912			605,034			583,700			415,270			349,908

Postpaid		1,043,719			423,364			347,746			272,609			1,355,772			467,294			391,165			266,600			230,713

Prepaid		468,526			180,406			155,194			132,926			598,140			137,740			192,535			148,670			119,195
Net subscriber activations (losses)		319,104			166,930			125,539			26,635			489,901			122,621			224,343			110,761			32,176

Postpaid		297,457			142,886			111,282			43,289			439,842			154,617			167,798			83,197			34,230

Prepaid		21,647			24,044			14,257			(16,654	)		50,059			(31,996	)		56,545			27,564			(2,054	)
Subscribers end of period (EOP)^(C)		10,194,961			10,194,961			10,028,031			9,902,492			9,949,086			9,949,086			9,826,465			9,602,122			9,491,361

Postpaid^(C)		9,294,115			9,294,115			9,151,229			9,039,947			9,069,887			9,069,887			8,915,270			8,747,472			8,664,275

Prepaid		900,846			900,846			876,802			862,545			879,199			879,199			911,195			854,650			827,086

Blended ARPU ($/month)^(B)		59.21			60.28			59.16			58.15			58.92			58.49			60.39			59.17			57.61
Blended churn (%) (average per month)		1.34%			1.45%			1.27%			1.29%			1.27%			1.63%			1.24%			1.07%			1.12%

Postpaid		0.98%			1.10%			0.94%			0.90%			0.92%			1.22%			0.90%			0.75%			0.79%

Prepaid		5.02%			5.10%			4.68%			5.28%			4.85%			5.74%			4.58%			4.41%			4.61%
Mobile connected device subscribers

Net subscriber activations		214,561			64,282			79,537			70,742			202,024			104,447			49,044			(344	)		48,877

Subscribers EOP^(C)		2,653,802			2,653,802			2,589,520			2,509,983			2,451,818			2,451,818			2,347,371			2,298,327			2,298,671
Retail high-speed Internet subscribers

Retail net subscriber activations		131,535			79,327			24,934			27,274			201,762			63,466			89,652			22,620			26,024

Retail subscribers EOP^(A)(D)(E)		4,417,838			4,417,838			4,338,511			4,278,497			4,258,570			4,258,570			4,067,039			3,977,387			3,954,767
Retail TV subscribers

Retail net subscriber activations (losses)		(24,131	)		4,222			(14,404	)		(13,949	)		5,148			14,183			10,853			(11,527	)		(8,361	)

IPTV		58,381			35,976			11,506			10,899			94,400			40,209			38,093			3,838			12,260

Satellite		(82,512	)		(31,754	)		(25,910	)		(24,848	)		(89,252	)		(26,026	)		(27,240	)		(15,365	)		(20,621	)

Total retail subscribers EOP^(A)(E)		2,727,610			2,727,610			2,723,388			2,737,549			2,751,498			2,751,498			2,735,000			2,724,147			2,735,674

IPTV^(A)(E)		2,046,805			2,046,805			2,010,829			1,999,080			1,988,181			1,988,181			1,945,657			1,907,564			1,903,726

Satellite		680,805			680,805			712,559			738,469			763,317			763,317			789,343			816,583			831,948
Retail residential NAS

Retail residential NAS lines net losses		(138,265	)		(41,776	)		(49,608	)		(46,881	)		(175,788	)		(37,878	)		(42,853	)		(52,712	)		(42,345	)

Retail residential NAS lines^(A)(E)		2,059,964			2,059,964			2,101,740			2,143,890			2,190,771			2,190,771			2,164,151			2,207,004			2,259,716

^(A)	In Q2 2023, our retail high-speed Internet, retail IPTV and retail residential NAS lines subscriber bases increased by 35,080, 243 and 7,458 subscribers, respectively, as a result of small acquisitions.

^(B)

^(C)	In Q1 2023, we adjusted our mobile phone postpaid and mobile connected device subscriber bases to remove older non-revenue generating business subscribers of 73,229 and 12,577, respectively.

^(D)	In Q1 2023, subsequent to a review of customer account records, our retail high-speed Internet subscriber base was reduced by 7,347 subscribers.

^(E)	In Q4 2022, as a result of the acquisition of Distributel, our retail high-speed Internet, retail IPTV and retail residential NAS lines subscriber bases increased by 128,065, 2,315 and 64,498 subscribers, respectively.

BCE Supplementary Financial Information - Third Quarter 2023 Page 9

BCE

Net debt and other information


BCE - Net debt and preferred shares
(In millions of Canadian dollars, except where otherwise indicated) (unaudited)
																September 30			June 30			March 31			December 31
																2023			2023			2023			2022

Long-term debt																29,532			28,314			27,456			27,783
Debt due within one year																5,171			6,039			6,347			4,137
50% of preferred shares																1,871			1,891			1,914			1,935
Cash																(569	)		(450	)		(651	)		(99)
Cash equivalents																(50	)		(450	)		(90	)		(50)
Net debt ^(A)																35,955			35,344			34,976			33,706

Net debt leverage ratio ^(A)																3.50			3.46			3.44			3.30
Adjusted EBITDA /adjusted net interest expense ratio ^(A)																7.12			7.48			7.94			8.50


Cash flow information
(In millions of Canadian dollars, except where otherwise indicated) (unaudited)				Q3			Q3									YTD			YTD
			2023			2022			$ change			% change			2023			2022			$ change			% change
Free cash flow (FCF) ^(A)
Cash flows from operating activities				1,961			1,996			(35	)		(1.8%)			5,573			6,309			(736	)		(11.7%)
Capital expenditures				(1,159	)		(1,317	)		158			12.0%			(3,552	)		(3,495	)		(57	)		(1.6%)
Cash dividends paid on preferred shares				(35	)		(27	)		(8	)		(29.6%)			(136	)		(94	)		(42	)		(44.7%)
Cash dividends paid by subsidiaries to non-controlling interest				(13	)		(11	)		(2	)		(18.2%)			(35	)		(36	)		1			2.8%
Acquisition and other costs paid				-			1			(1	)		(100.0%)			5			7			(2	)		(28.6%)
FCF				754			642			112			17.4%			1,855			2,691			(836	)		(31.1%)


Cash flow information - Historical trend
(In millions of Canadian dollars, except where otherwise indicated) (unaudited)	YTD			Q3			Q2			Q1			Total			Q4			Q3			Q2			Q1
	2023			2023			2023			2023			2022			2022			2022			2022			2022
FCF
Cash flows from operating activities	5,573			1,961			2,365			1,247			8,365			2,056			1,996			2,597			1,716
Capital expenditures	(3,552	)		(1,159	)		(1,307	)		(1,086	)		(5,133	)		(1,638	)		(1,317	)		(1,219	)		(959)
Cash dividends paid on preferred shares	(136	)		(35	)		(46	)		(55	)		(136	)		(42	)		(27	)		(34	)		(33)
Cash dividends paid by subsidiaries to non-controlling interest	(35	)		(13	)		(1	)		(21	)		(39	)		(3	)		(11	)		(14	)		(11)
Acquisition and other costs paid	5			-			5			-			10			3			1			3			3
FCF	1,855			754			1,016			85			3,067			376			642			1,333			716

^(A)

Net debt and free cash flow are non-GAAP financial measures and net debt leverage ratio and adjusted EBITDA to adjusted net interest expense ratio are capital management measures. Refer to note 2.1, Non-GAAP financial measures and note 2.4, Capital management measures in the Accompanying Notes to this report for more information on these measures.

BCE Supplementary Financial Information - Third Quarter 2023 Page 10

BCE

Consolidated Statements of Financial Position


(In millions of Canadian dollars, except where otherwise indicated) (unaudited)	September 30 2023			June 30 2023			March 31 2023			December 31 2022
*ASSETS*
Current assets
Cash		569			450			651			99
Cash equivalents		50			450			90			50
Trade and other receivables		3,838			3,771			3,828			4,138
Inventory		636			656			673			656
Contract assets		404			403			419			436
Contract costs		590			559			538			540
Prepaid expenses		338			395			378			244
Other current assets		312			282			330			324
Assets held for sale		-			-			260			-
Total current assets		6,737			6,966			7,167			6,487
Non-current assets
Contract assets		251			243			260			288
Contract costs		732			683			633			603
Property, plant and equipment		30,158			29,909			29,233			29,256
Intangible assets		16,491			16,395			16,338			16,183
Deferred tax assets		114			108			102			84
Investments in associates and joint ventures		326			322			664			608
Post-employment benefit assets		3,299			3,207			3,407			3,559
Other non-current assets		1,241			1,194			1,341			1,355
Goodwill		11,023			11,022			10,830			10,906
Total non-current assets		63,635			63,083			62,808			62,842
Total assets		70,372			70,049			69,975			69,329
*LIABILITIES*
Current liabilities
Trade payables and other liabilities		4,354			4,347			4,080			5,221
Contract liabilities		798			793			851			857
Interest payable		258			305			208			281
Dividends payable		910			900			900			867
Current tax liabilities		279			207			164			106
Debt due within one year		5,171			6,039			6,347			4,137
Liabilities held for sale		-			-			109			-
Total current liabilities		11,770			12,591			12,659			11,469
Non-current liabilities
Contract liabilities		271			257			244			228
Long-term debt		29,532			28,314			27,456			27,783
Deferred tax liabilities		4,954			4,898			4,969			4,953
Post-employment benefit obligations		1,225			1,339			1,348			1,311
Other non-current liabilities		1,313			1,201			1,032			1,070
Total non-current liabilities		37,295			36,009			35,049			35,345
Total liabilities		49,065			48,600			47,708			46,814
*EQUITY*
Equity attributable to BCE shareholders
Preferred shares		3,742			3,781			3,827			3,870
Common shares		20,859			20,859			20,851			20,840
Contributed surplus		1,230			1,204			1,179			1,172
Accumulated other comprehensive (loss) income		(145	)		(105	)		3			(55	)
Deficit		(4,716	)		(4,618	)		(3,926	)		(3,649	)
Total equity attributable to BCE shareholders		20,970			21,121			21,934			22,178
Non-controlling interest		337			328			333			337
Total equity		21,307			21,449			22,267			22,515
Total liabilities and equity		70,372			70,049			69,975			69,329
Number of common shares outstanding (millions)		912.3			912.3			912.2			912.0

BCE Supplementary Financial Information - Third Quarter 2023 Page 11

BCE

Consolidated Cash Flow Data


	Q3			Q3						YTD			YTD
(In millions of Canadian dollars, except where otherwise indicated) (unaudited)	2023			2022			$ change			2023			2022			$ change

Net earnings		707			771			(64	)		1,892			2,359			(467	)
Adjustments to reconcile net earnings to cash flows from operating activities
Severance, acquisition and other costs		10			22			(12	)		159			75			84
Depreciation and amortization		1,232			1,181			51			3,665			3,531			134
Post-employment benefit plans cost		23			48			(25	)		75			151			(76	)
Net interest expense		358			282			76			1,034			805			229
Impairment of assets		-			21			(21	)		34			129			(95	)
Losses (gains) on investments		1			-			1			(78	)		(53	)		(25	)
Net equity losses on investments in associates and joint ventures		-			-			-			377			42			335
Income taxes		243			178			65			786			745			41
Contributions to post-employment benefit plans		(12	)		(14	)		2			(40	)		(128	)		88
Payments under other post-employment benefit plans		(16	)		(17	)		1			(48	)		(47	)		(1	)
Severance and other costs paid		(55	)		(44	)		(11	)		(119	)		(102	)		(17	)
Interest paid		(451	)		(385	)		(66	)		(1,160	)		(954	)		(206	)
Income taxes paid (net of refunds)		(167	)		(150	)		(17	)		(531	)		(409	)		(122	)
Acquisition and other costs paid		-			(1	)		1			(5	)		(7	)		2
Change in contract assets		(8	)		(20	)		12			70			35			35
Change in wireless device financing plan receivables		16			(6	)		22			81			121			(40	)
Net change in operating assets and liabilities		80			130			(50	)		(619	)		16			(635	)
Cash flows from operating activities		1,961			1,996			(35	)		5,573			6,309			(736	)
Capital expenditures		(1,159	)		(1,317	)		158			(3,552	)		(3,495	)		(57	)
Cash dividends paid on preferred shares		(35	)		(27	)		(8	)		(136	)		(94	)		(42	)
Cash dividends paid by subsidiaries to non-controlling interest		(13	)		(11	)		(2	)		(35	)		(36	)		1
Acquisition and other costs paid		-			1			(1	)		5			7			(2	)
Free cash flow		754			642			112			1,855			2,691			(836	)
Business acquisitions		1			(3	)		4			(220	)		(142	)		(78	)
Business dispositions		1			(1	)		2			209			53			156
Acquisition and other costs paid		-			(1	)		1			(5	)		(7	)		2
Spectrum licences		(3	)		(3	)		-			(159	)		(3	)		(156	)
Other investing activities		(16	)		(8	)		(8	)		(1	)		9			(10	)
(Decrease) increase in notes payable		(300	)		(34	)		(266	)		(484	)		622			(1,106	)
Increase in securitized receivables		-			700			(700	)		-			700			(700	)
Issue of long-term debt		1,161			-			1,161			3,864			945			2,919
Repayment of long-term debt		(920	)		(270	)		(650	)		(1,565	)		(1,773	)		208
Repurchase of a financial liability		-			-			-			(149	)		-			(149	)
Issue of common shares		-			1			(1	)		18			169			(151	)
Purchase of shares for settlement of share-based payments		(44	)		(49	)		5			(179	)		(206	)		27
Repurchase of preferred shares		(27	)		-			(27	)		(90	)		(115	)		25
Cash dividends paid on common shares		(883	)		(839	)		(44	)		(2,604	)		(2,473	)		(131	)
Other financing activities		(5	)		2			(7	)		(20	)		(26	)		6
		(1,035	)		(505	)		(530	)		(1,385	)		(2,247	)		862
Net increase (decrease) in cash		119			(13	)		132			470			294			176
Cash at beginning of period		450			596			(146	)		99			289			(190	)
Cash at end of period		569			583			(14	)		569			583			(14	)
Net (decrease) increase in cash equivalents		(400	)		150			(550	)		-			150			(150	)
Cash equivalents at beginning of period		450			-			450			50			-			50
Cash equivalents at end of period		50			150			(100	)		50			150			(100	)

BCE Supplementary Financial Information - Third Quarter 2023 Page 12

BCE

Consolidated Cash Flow Data - Historical Trend


(In millions of Canadian dollars, except where otherwise indicated) (unaudited)	YTD 2023			Q3 23			Q2 23			Q1 23			TOTAL 2022			Q4 22			Q3 22			Q2 22			Q1 22

Net earnings		1,892			707			397			788			2,926			567			771			654			934
Adjustments to reconcile net earnings to cash flows from operating activities
Severance, acquisition and other costs		159			10			100			49			94			19			22			40			13
Depreciation and amortization		3,665			1,232			1,232			1,201			4,723			1,192			1,181			1,199			1,151
Post-employment benefit plans cost		75			23			21			31			198			47			48			52			51
Net interest expense		1,034			358			346			330			1,124			319			282			265			258
Impairment of assets		34			-			-			34			279			150			21			106			2
(Gains) losses on investments		(78	)		1			(79	)		-			(24	)		29			-			(16	)		(37	)
Net equity losses on investments in associates and joint ventures		377			-			377			-			42			-			-			42			-
Income taxes		786			243			273			270			967			222			178			232			335
Contributions to post-employment benefit plans		(40	)		(12	)		(13	)		(15	)		(140	)		(12	)		(14	)		(35	)		(79	)
Payments under other post-employment benefit plans		(48	)		(16	)		(17	)		(15	)		(64	)		(17	)		(17	)		(15	)		(15	)
Severance and other costs paid		(119	)		(55	)		(39	)		(25	)		(129	)		(27	)		(44	)		(30	)		(28	)
Interest paid		(1,160	)		(451	)		(270	)		(439	)		(1,197	)		(243	)		(385	)		(196	)		(373	)
Income taxes paid (net of refunds)		(531	)		(167	)		(200	)		(164	)		(749	)		(340	)		(150	)		(143	)		(116	)
Acquisition and other costs paid		(5	)		-			(5	)		-			(10	)		(3	)		(1	)		(3	)		(3	)
Change in contract assets		70			(8	)		33			45			(59	)		(94	)		(20	)		23			32
Change in wireless device financing plan receivables		81			16			24			41			22			(99	)		(6	)		68			59
Net change in operating assets and liabilities		(619	)		80			185			(884	)		362			346			130			354			(468	)
Cash flows from operating activities		5,573			1,961			2,365			1,247			8,365			2,056			1,996			2,597			1,716
Capital expenditures		(3,552	)		(1,159	)		(1,307	)		(1,086	)		(5,133	)		(1,638	)		(1,317	)		(1,219	)		(959	)
Cash dividends paid on preferred shares		(136	)		(35	)		(46	)		(55	)		(136	)		(42	)		(27	)		(34	)		(33	)
Cash dividends paid by subsidiaries to non-controlling interest		(35	)		(13	)		(1	)		(21	)		(39	)		(3	)		(11	)		(14	)		(11	)
Acquisition and other costs paid		5			-			5			-			10			3			1			3			3
Free cash flow		1,855			754			1,016			85			3,067			376			642			1,333			716
Business acquisitions		(220	)		1			(196	)		(25	)		(429	)		(287	)		(3	)		-			(139	)
Business dispositions		209			1			208			-			52			(1	)		(1	)		2			52
Acquisition and other costs paid		(5	)		-			(5	)		-			(10	)		(3	)		(1	)		(3	)		(3	)
Spectrum licences		(159	)		(3	)		(145	)		(11	)		(3	)		-			(3	)		-			-
Other investing activities		(1	)		(16	)		(16	)		31			(4	)		(13	)		(8	)		27			(10	)
(Decrease) increase in notes payable		(484	)		(300	)		(101	)		(83	)		111			(511	)		(34	)		187			469
(Decrease) increase in securitized receivables		-			-			(500	)		500			700			-			700			-			-
Issue of long-term debt		3,864			1,161			1,199			1,504			1,951			1,006			-			-			945
Repayment of long-term debt		(1,565	)		(920	)		(346	)		(299	)		(2,023	)		(250	)		(270	)		(245	)		(1,258	)
Repurchase of a financial liability		(149	)		-			-			(149	)		-			-			-			-			-
Issue of common shares		18			-			8			10			171			2			1			7			161
Purchase of shares for settlement of share-based payments		(179	)		(44	)		(42	)		(93	)		(255	)		(49	)		(49	)		(51	)		(106	)
Repurchase of preferred shares		(90	)		(27	)		(32	)		(31	)		(125	)		(10	)		-			-			(115	)
Cash dividends paid on common shares		(2,604	)		(883	)		(882	)		(839	)		(3,312	)		(839	)		(839	)		(839	)		(795	)
Other financing activities		(20	)		(5	)		(7	)		(8	)		(31	)		(5	)		2			-			(28	)
		(1,385	)		(1,035	)		(857	)		507			(3,207	)		(960	)		(505	)		(915	)		(827	)
Net increase (decrease) in cash		470			119			(201	)		552			(190	)		(484	)		(13	)		418			(111	)
Cash at beginning of period		99			450			651			99			289			583			596			178			289
Cash at end of period		569			569			450			651			99			99			583			596			178
Net (decrease) increase in cash equivalents		-			(400	)		360			40			50			(100	)		150			-			-
Cash equivalents at beginning of period		50			450			90			50			-			150			-			-			-
Cash equivalents at end of period		50			50			450			90			50			50			150			-			-

BCE Supplementary Financial Information - Third Quarter 2023 Page 13

Accompanying Notes

(1)	Effective Q1 2023, our results are now reported in two segments: Bell CTS and Bell Media.

In 2022, we began modifying our internal and external reporting processes to align with organizational changes that were made to reflect an increasing strategic focus on multiproduct sales, the continually increasing technological convergence of our wireless and wireline telecommunications infrastructure and operations driven by the deployment of our Fifth Generation (5G) and fibre networks, and our digital transformation. These factors have made it increasingly difficult to distinguish between our wireless and wireline operations and resulted in changes in Q1 2023 to the financial information that is regularly provided to our chief operating decision maker to measure performance and allocate resources.

Effective with our Q1 2023 results, our previous Bell Wireless and Bell Wireline operating segments were combined to form a single reporting segment called Bell Communication and Technology Services (Bell CTS). Bell Media remains a distinct reportable segment and is unaffected. Our results are therefore reported in two segments: Bell CTS and Bell Media. As a result of our reporting changes, prior periods have been restated for comparative purposes.

Our Bell CTS segment provides a wide range of communication products and services to consumers, businesses and government customers across Canada. Wireless products and services include mobile data and voice plans and devices and are available nationally. Wireline products and services comprise data (including Internet access, IPTV, cloud-based services and business solutions), voice, and other communication services and products, which are available to our residential, small and medium-sized business and large enterprise customers primarily in Ontario, Québec, the Atlantic provinces and Manitoba, while satellite TV service and connectivity to business customers are available nationally across Canada. In addition, this segment includes our wholesale business, which buys and sells local telephone, long distance, data and other services from or to resellers and other carriers, as well as the results of operations of our national consumer electronics retailer, The Source (Bell) Electronics Inc. (The Source).

Our Bell Media segment provides conventional TV, specialty TV, pay TV, streaming services, digital media services, radio broadcasting services and OOH and advanced advertising services to customers nationally across Canada.

Furthermore, effective Q1 2023, as a result of the segment reporting changes impacting intersegment eliminations, ARPU has been updated and is defined as Bell CTS wireless external services revenues (previously wireless operating service revenues) divided by the average mobile phone subscriber base for the specified period, expressed as a dollar unit per month.

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)	Non-GAAP and other financial measures

BCE uses various financial measures to assess its business performance. Certain of these measures are calculated in accordance with International Financial Reporting Standards (IFRS or GAAP) while certain other measures do not have a standardized meaning under GAAP. We believe that our GAAP financial measures, read together with adjusted non-GAAP and other financial measures, provide readers with a better understanding of how management assesses BCE’s performance.

National Instrument 52-112, Non-GAAP and Other Financial Measures Disclosure (NI 52-112), prescribes disclosure requirements that apply to the following specified financial measures:

●

Non-GAAP financial measures;

●

Non-GAAP ratios;

BCE Supplementary Financial Information – Third Quarter 2023 Page 14

●

Total of segments measures;

●

Capital management measures; and

●

Supplementary financial measures.

This section provides a description and classification of the specified financial measures contemplated by NI 52-112 that we use in this report to explain our financial results except that, for supplementary financial measures, an explanation of such measures is provided where they are first referred to in this report if the supplementary financial measures’ labelling is not sufficiently descriptive.

(2.1)

Non-GAAP financial measures

A non-GAAP financial measure is a financial measure used to depict our historical or expected future financial performance, financial position or cash flow and, with respect to its composition, either excludes an amount that is included in, or includes an amount that is excluded from, the composition of the most directly comparable financial measure disclosed in BCE’s consolidated primary financial statements. We believe that non-GAAP financial measures are reflective of our on-going operating results and provide readers with an understanding of management’s perspective on and analysis of our performance.

Below are descriptions of the non-GAAP financial measures that we use in this report to explain our results. Except for adjusted net interest expense, for which a reconciliation is provided below, reconciliations to the most directly comparable IFRS financial measures on a consolidated basis are set out earlier in this report.

Adjusted net earnings

The term adjusted net earnings does not have any standardized meaning under IFRS. Therefore, it is 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 equity losses (gains) on investments in associates and joint ventures, net losses (gains) on investments, early debt redemption costs, impairment of assets and discontinued operations, net of tax and NCI.

We use adjusted net earnings and we believe that certain investors and analysts use this measure, 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 equity losses (gains) on investments in associates and joint ventures, net losses (gains) on investments, early debt redemption costs, impairment of assets and discontinued operations, 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 directly comparable IFRS financial measure is net earnings attributable to common shareholders. Refer to pages 2 and 3 of this report for a reconciliation of net earnings attributable to common shareholders to adjusted net earnings on a consolidated basis.

Adjusted net interest expense

The term adjusted 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 define adjusted net interest expense as twelve-month trailing net interest expense as shown in our consolidated statements of cash flows, plus 50% of twelve-month trailing net earnings attributable to preferred shareholders as shown in our consolidated income statements.

BCE Supplementary Financial Information – Third Quarter 2023 Page 15

We use adjusted net interest expense as a component in the calculation of the adjusted EBITDA to adjusted net interest expense ratio, which is a capital management measure. For further details on the adjusted EBITDA to adjusted net interest expense ratio, see note 2.4, Capital management measures below. We use and believe that certain investors and analysts use the adjusted EBITDA to adjusted net interest expense ratio, among other measures, to evaluate the financial health of the company.

The most directly comparable IFRS financial measure is net interest expense. The following tables provide reconciliations of net interest expense to adjusted net interest expense on a consolidated basis.



	Q3 2023

Net interest expense (nine months ended September 30, 2023)	1,034

Net interest expense (year ended December 31, 2022)	1,124

Net interest expense (nine months ended September 30, 2022)	(805	)

12-month trailing net interest expense (ended September 30, 2023)	1,353

50% of net earnings attributable to preferred shareholders (nine months ended September 30, 2023)	70

50% of net earnings attributable to preferred shareholders (year ended December 31, 2022)	76

50% of net earnings attributable to preferred shareholders (nine months ended September 30, 2022)	(54	)

50% of 12-month trailing net earnings attributable to preferred shareholders (ended September 30, 2023)	92

Adjusted net interest expense for the twelve months ended September 30, 2023	1,445



	Q2 2023

Net interest expense (six months ended June 30, 2023)	676

Net interest expense (year ended December 31, 2022)	1,124

Net interest expense (six months ended June 30, 2022)	(523	)

12-month trailing net interest expense (ended June 30, 2023)	1,277

50% of net earnings attributable to preferred shareholders (six months ended June 30, 2023)	46

50% of net earnings attributable to preferred shareholders (year ended December 31, 2022)	76

50% of net earnings attributable to preferred shareholders (six months ended June 30, 2022)	(35	)

50% of 12-month trailing net earnings attributable to preferred shareholders (ended June 30, 2023)	87

Adjusted net interest expense for the twelve months ended June 30, 2023	1,364

BCE Supplementary Financial Information – Third Quarter 2023 Page 16



	Q1 2023

Net interest expense (three months ended March 31, 2023)	330

Net interest expense (year ended December 31, 2022)	1,124

Net interest expense (three months ended March 31, 2022)	(258	)

12-month trailing net interest expense (ended March 31, 2023)	1,196

50% of net earnings attributable to preferred shareholders (three months ended March 31, 2023)	23

50% of net earnings attributable to preferred shareholders (year ended December 31, 2022)	76

50% of net earnings attributable to preferred shareholders (three months ended March 31, 2022)	(17	)

50% of 12-month trailing net earnings attributable to preferred shareholders (ended March 31, 2023)	82

Adjusted net interest expense for the twelve months ended March 31, 2023	1,278

	Q4 2022

Net interest expense	1,124

50% of net earnings attributable to preferred shareholders	76

Adjusted net interest expense	1,200

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 cash from discontinued operations, 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 cash from discontinued operations, 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. Free cash flow 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 directly comparable IFRS financial measure is cash flows from operating activities. Refer to pages 10, 12 and 13 of this report for a reconciliation of cash flows from operating activities to free cash flow on a consolidated basis.

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.

BCE Supplementary Financial Information – Third Quarter 2023 Page 17

Net debt is calculated using several asset and liability categories from the statements of financial position. The most directly comparable IFRS financial measure is long-term debt. Refer to page 10 of this report for a reconciliation of long-term debt to net debt on a consolidated basis.

(2.2)

Non-GAAP ratios

A non-GAAP ratio is a financial measure disclosed in the form of a ratio, fraction, percentage or similar representation and that has a non-GAAP financial measure as one or more of its components.

Adjusted EPS

The term adjusted EPS does not have any standardized meaning under IFRS. Therefore, it is unlikely to be comparable to similar measures presented by other issuers.

We define adjusted EPS as adjusted net earnings per BCE common share. Adjusted net earnings is a non-GAAP financial measure. For further details on adjusted net earnings, see note 2.1 – Non-GAAP financial measures above.

We use adjusted EPS, and we believe that certain investors and analysts use this measure, 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 equity losses (gains) on investments in associates and joint ventures, net losses (gains) on investments, early debt redemption costs, impairment of assets and discontinued operations, 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.

(2.3)

Total of segments measures

A total of segments measure is a financial measure that is a subtotal or total of 2 or more reportable segments and is disclosed within the Notes to BCE’s consolidated primary financial statements.

Adjusted EBITDA

We define adjusted EBITDA as operating revenues less operating costs as shown in BCE’s consolidated income statements.

The most directly comparable IFRS financial measure is net earnings. The following table provides reconciliations of net earnings to adjusted EBITDA on a consolidated basis.


	YTD 2023		Q3 2023		Q2 2023		Q1 2023		Total 2022		Q4 2022		YTD 2022		Q3 2022		Q2 2022		Q1 2022
Net earnings	1,892		707		397		788		2,926		567		2,359		771		654		934

Severance, acquisition and other costs	159		10		100		49		94		19		75		22		40		13

Depreciation	2,791		937		936		918		3,660		922		2,738		914		933		891

Amortization	874		295		296		283		1,063		270		793		267		266		260

Finance costs

Interest expense	1,076		373		359		344		1,146		319		827		298		269		260

Net return on post-employment benefit plans	(81	)	(27	)	(27	)	(27	)	(51	)	(13	)	(38	)	(13	)	(7	)	(18	)

Impairment of assets	34		-		-		34		279		150		129		21		106		2

Other expense (income)	319		129		311		(121	)	115		(19	)	134		130		97		(93	)

Income taxes	786		243		273		270		967		222		745		178		232		335

Adjusted EBITDA	7,850		2,667		2,645		2,538		10,199		2,437		7,762		2,588		2,590		2,584

BCE Supplementary Financial Information – Third Quarter 2023 Page 18

(2.4)

Capital management measures

A capital management measure is a financial measure that is intended to enable a reader to evaluate our objectives, policies and processes for managing our capital and is disclosed within the Notes to BCE’s consolidated financial statements.

The financial reporting framework used to prepare the financial statements requires disclosure that helps readers assess the company’s capital management objectives, policies, and processes, as set out in IFRS in IAS 1 – Presentation of Financial Statements. BCE has its own methods for managing capital and liquidity, and IFRS does not prescribe any particular calculation method.

Adjusted EBITDA to adjusted net interest expense ratio

The adjusted EBITDA to adjusted net interest expense ratio represents adjusted EBITDA divided by adjusted net interest expense. For the purposes of calculating our adjusted EBITDA to adjusted net interest expense ratio, adjusted EBITDA is twelve-month trailing adjusted EBITDA. Adjusted net interest expense used in the calculation of the adjusted EBITDA to adjusted net interest expense ratio is a non-GAAP financial measure defined as twelve-month trailing net interest expense as shown in our consolidated statements of cash flows, plus 50% of twelve-month trailing net earnings attributable to preferred shareholders as shown in our consolidated income statements. For further details on adjusted net interest expense, see note 2.1, Non-GAAP financial measures above.

We use, and believe that certain investors and analysts use, the adjusted EBITDA to adjusted net interest expense ratio, among other measures, to evaluate the financial health of the company.

Net debt leverage ratio

The net debt leverage ratio represents net debt divided by adjusted EBITDA. Net debt used in the calculation of the net debt leverage ratio is a non-GAAP financial measure. For further details on net debt, see note 2.1, Non-GAAP financial measures above. For the purposes of calculating our net debt leverage ratio, adjusted EBITDA is twelve-month trailing adjusted EBITDA.

We use, and believe that certain investors and analysts use, the net debt leverage ratio as a measure of financial leverage.

(2.5)

Supplementary financial measures

A supplementary financial measure is a financial measure that is not reported in BCE’s consolidated financial statements, and is, or is intended to be, reported periodically to represent historical or expected future financial performance, financial position, or cash flows.

An explanation of such measures is provided where they are first referred to in this report if the supplementary financial measures’ labelling is not sufficiently descriptive.

(3)	Key performance indicators (KPIs)

In addition to the non-GAAP financial measures and other financial measures described previously, we use the following 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.

Adjusted EBITDA margin is defined as adjusted EBITDA divided by operating revenues.

Capital intensity is defined as capital expenditures divided by operating revenues.

Mobile phone blended ARPU is defined as Bell CTS wireless external services revenues divided by the average mobile phone subscriber base for the specified period, expressed as a dollar unit per month.

BCE Supplementary Financial Information – Third Quarter 2023 Page 19

Mobile phone churn is the rate at which existing mobile phone subscribers cancel their services. It is a measure of our ability to retain our customers. Mobile phone churn is calculated by dividing the number of mobile phone deactivations during a given period by the average number of mobile phone subscribers in the base for the specified period and is expressed as a percentage per month.

Mobile phone subscriber unit is comprised of a recurring revenue generating portable unit (e.g. smartphones and feature phones) on an active service plan, that has access to our wireless networks and includes voice, text and/or data connectivity. We report mobile phone subscriber units in two categories: postpaid and prepaid. Prepaid mobile phone subscriber units are considered active for a period of 90 days following the expiry of the subscriber’s prepaid balance.

Mobile connected device subscriber unit is comprised of a recurring revenue generating portable unit (e.g. tablets, wearables, mobile Internet devices and Internet of Things) on an active service plan, that has access to our wireless networks and is intended for limited or no cellular voice capability.

Wireline subscriber unit consists of an active revenue-generating unit with access to our services, including retail Internet, satellite TV, IPTV, and/or residential 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 residential NAS subscribers are based on a line count and are represented by a unique telephone number

BCE Supplementary Financial Information – Third Quarter 2023 Page 20