EX-99.2 3 a2024-q1xfinancials.htm BCE INC. 2024 FIRST QUARTER FINANCIAL STATEMENTS
Exhibit 99.2
Consolidated financial statements
Table of contents

Consolidated income statements | 46
Consolidated statements of comprehensive income | 47
Consolidated statements of financial position | 48
Consolidated statements of changes in equity | 49
Consolidated statements of cash flows | 50
Notes to consolidated financial statements | 51
Note 1 Corporate information | 51
Note 2 Basis of presentation and material accounting policies | 51
Note 3 Segmented information | 52
Note 4 Operating costs | 53
Note 5 Severance, acquisition and other costs | 53
Note 6 Impairment of assets | 54
Note 7 Other (expense) income | 54
Note 8 Earnings per share | 54
Note 9 Debt | 55
Note 10 Post-employment benefit plans | 55
Note 11 Financial assets and liabilities | 56
Note 12 Share capital | 58
Note 13 Share-based payments | 58

45

Consolidated income statements

For the period ended March 31 |  |  |  |  |
(in millions of Canadian dollars, except share amounts) (unaudited) | Note | 2024 | 2023 |  |
Operating revenues |  | 3 | 6,011 |  | 6,054 |  |  |
Operating costs | 3, | 4 | (3,446) |  | (3,516) |  |  |
Severance, acquisition and other costs |  | 5 | (229) |  | (49) |  |  |
Depreciation |  |  | (946) |  | (918) |  |  |
Amortization |  |  | (316) |  | (283) |  |  |
Finance costs |  |  |  |  |  |
Interest expense |  |  | (416) |  | (344) |  |  |
Net return on post-employment benefit plans |  | 10 | 16 |  | 27 |  |  |
Impairment of assets |  | 6 | (13) |  | (34) |  |  |
Other (expense) income |  | 7 | (38) |  | 121 |  |  |
Income taxes |  |  | (166) |  | (270) |  |  |
Net earnings |  |  | 457 |  | 788 |  |  |
Net earnings attributable to: |  |  |  |  |  |
Common shareholders |  |  | 402 |  | 725 |  |  |
Preferred shareholders |  |  | 47 |  | 46 |  |  |
Non-controlling interest |  |  | 8 |  | 17 |  |  |
Net earnings |  |  | 457 |  | 788 |  |  |
Net earnings per common share - basic and diluted |  | 8 | 0.44 |  | 0.79 |  |
Weighted average number of common shares outstanding - basic (millions) |  |  | 912.3 |  | 912.1 |  |  |

46 BCE Inc. 2024 FIRST QUARTER SHAREHOLDER REPORT

Consolidated statements of comprehensive income

For the period ended March 31 |  |  |  |
(in millions of Canadian dollars) (unaudited) | Note | 2024 | 2023 |  |
Net earnings |  | 457 |  | 788 |  |  |
Other comprehensive income (loss), net of income taxes |  |  |  |  |
Items that will be subsequently reclassified to net earnings |  |  |  |  |
Net change in value of derivatives designated as cash flow hedges, net of income taxes of ($28) million and ($21) million for the three months ended March 31, 2024 and 2023, respectively |  | 78 |  | 58 |  |  |
Items that will not be reclassified to net earnings |  |  |  |  |
Actuarial gains (losses) on post-employment benefit plans, net of income taxes of ($115) million and $47 million for the three months ended March 31, 2024 and 2023, respectively(1) | 10 | 314 |  | (127) |  |  |
Net change in value of publicly-traded and privately-held investments, net of income taxes of nil and ($3) million for the three months ended March 31, 2024 and 2023, respectively |  | (9) |  | 17 |  |  |
Net change in value of derivatives designated as cash flow hedges, net of income taxes of ($6) million and ($2) million for the three months ended March 31, 2024 and 2023, respectively |  | 16 |  | 6 |  |  |
Other comprehensive income (loss) |  | 399 |  | (46) |  |  |
Total comprehensive income |  | 856 |  | 742 |  |  |
Total comprehensive income attributable to: |  |  |  |  |
Common shareholders |  | 800 |  | 679 |  |  |
Preferred shareholders |  | 47 |  | 46 |  |  |
Non-controlling interest |  | 9 |  | 17 |  |  |
Total comprehensive income |  | 856 |  | 742 |  |  |

(1)The discount rate used to value our post-employment benefit obligations at March 31, 2024 was 4.9% compared to 4.6% at December 31, 2023. The discount rate used to value our post-employment benefit obligations at March 31, 2023 was 5.0% compared to 5.3% at December 31, 2022.
47

Consolidated statements of financial position

(in millions of Canadian dollars) (unaudited) | Note | March 31, 2024 | December 31, 2023 |
ASSETS |  |  |  |  |
Current assets |  |  |  |  |
Cash |  |  | 789 |  | 547 |  |
Cash equivalents |  |  | 171 |  | 225 |  |
Short-term investments |  |  | 700 |  | 1,000 |  |
Trade and other receivables |  |  | 3,929 |  | 4,031 |  |
Inventory |  |  | 458 |  | 465 |  |
Contract assets |  |  | 435 |  | 443 |  |
Contract costs |  |  | 704 |  | 633 |  |
Prepaid expenses |  |  | 385 |  | 230 |  |
Other current assets |  |  | 274 |  | 264 |  |
Assets held for sale |  |  | 55 |  | 60 |  |
Total current assets |  |  | 7,900 |  | 7,898 |  |
Non-current assets |  |  |  |  |
Contract assets |  |  | 272 |  | 292 |  |
Contract costs |  |  | 744 |  | 779 |  |
Property, plant and equipment |  |  | 30,357 |  | 30,352 |  |
Intangible assets |  |  | 16,770 |  | 16,609 |  |
Deferred tax assets |  |  | 121 |  | 96 |  |
Investments in associates and joint ventures |  |  | 322 |  | 323 |  |
Post-employment benefit assets |  | 10 | 3,285 |  | 2,935 |  |
Other non-current assets |  |  | 1,799 |  | 1,714 |  |
Goodwill |  |  | 10,997 |  | 10,942 |  |
Total non-current assets |  |  | 64,667 |  | 64,042 |  |
Total assets |  |  | 72,567 |  | 71,940 |  |
LIABILITIES |  |  |  |  |
Current liabilities |  |  |  |  |
Trade payables and other liabilities |  |  | 4,345 |  | 4,729 |  |
Contract liabilities |  |  | 817 |  | 811 |  |
Interest payable |  |  | 335 |  | 332 |  |
Dividends payable |  |  | 938 |  | 910 |  |
Current tax liabilities |  |  | 170 |  | 268 |  |
Debt due within one year |  | 9 |  | 6,386 |  | 5,042 |  |
Liabilities held for sale |  |  | 15 |  | 15 |  |
Total current liabilities |  |  | 13,006 |  | 12,107 |  |
Non-current liabilities |  |  |  |  |
Contract liabilities |  |  | 277 |  | 277 |  |
Long-term debt |  | 9 |  | 31,283 |  | 31,135 |  |
Deferred tax liabilities |  |  | 4,981 |  | 4,869 |  |
Post-employment benefit obligations |  | 10 | 1,227 |  | 1,278 |  |
Other non-current liabilities |  |  | 1,421 |  | 1,717 |  |
Total non-current liabilities |  |  | 39,189 |  | 39,276 |  |
Total liabilities |  |  | 52,195 |  | 51,383 |  |
EQUITY |  |  |  |  |
Equity attributable to BCE shareholders |  |  |  |  |
Preferred shares |  | 12 | 3,614 |  | 3,667 |  |
Common shares |  |  | 20,859 |  | 20,859 |  |
Contributed surplus |  |  | 1,241 |  | 1,258 |  |
Accumulated other comprehensive income (loss) |  |  | 46 |  | (42) |  |
Deficit |  |  | (5,711) |  | (5,513) |  |
Total equity attributable to BCE shareholders |  |  | 20,049 |  | 20,229 |  |
Non-controlling interest |  |  | 323 |  | 328 |  |
Total equity |  |  | 20,372 |  | 20,557 |  |
Total liabilities and equity |  |  | 72,567 |  | 71,940 |  |

48 BCE Inc. 2024 FIRST QUARTER SHAREHOLDER REPORT

Consolidated statements of changes in equity

|  | Attributable to BCE shareholders |  |
For the period ended March 31, 2024 (in millions of Canadian dollars) (unaudited) | Note | Preferred shares | Common shares | Contri-buted surplus | Accum-ulated other compre-hensive (loss) income | Deficit | Total | Non-controlling interest | Total equity
Balance at December 31, 2023 |  | 3,667 |  | 20,859 |  | 1,258 |  | (42) |  | (5,513) |  | 20,229 |  | 328 |  | 20,557 |
Net earnings |  | — |  | — |  | — |  | — |  | 449 |  | 449 |  | 8 |  | 457 |
Other comprehensive income |  | — |  | — |  | — |  | 84 |  | 314 |  | 398 |  | 1 |  | 399 |
Total comprehensive income |  | — |  | — |  | — |  | 84 |  | 763 |  | 847 |  | 9 |  | 856 |
Other share-based compensation |  | — |  | — |  | (32) |  | — |  | (3) |  | (35) |  | — |  | (35) |
Repurchase of preferred shares | 12 |  | (53) |  | — |  | 15 |  | — |  | — |  | (38) |  | — |  | (38) |
Dividends declared on BCE common and preferred shares |  | — |  | — |  | — |  | — |  | (958) |  | (958) |  | — |  | (958) |
Dividends declared by subsidiaries to non-controlling interest |  | — |  | — |  | — |  | — |  | — |  | — |  | (14) |  | (14) |
Settlement of cash flow hedges transferred to the cost basis of hedged items |  | — |  | — |  | — |  | 4 |  | — |  | 4 |  | — |  | 4 |
Balance at March 31, 2024 |  | 3,614 |  | 20,859 |  | 1,241 |  | 46 |  | (5,711) |  | 20,049 |  | 323 |  | 20,372 |

|  | Attributable to BCE shareholders |  |
For the period ended March 31, 2023 (in millions of Canadian dollars) (unaudited) |  | Preferred shares | Common shares | Contri-buted surplus | Accum-ulated other compre-hensive (loss) income | Deficit | Total | Non-controlling interest | Total equity
Balance at December 31, 2022 |  | 3,870 |  | 20,840 |  | 1,172 |  | (55) |  | (3,649) |  | 22,178 |  | 337 |  | 22,515 |
Net earnings |  | — |  | — |  | — |  | — |  | 771 |  | 771 |  | 17 |  | 788 |
Other comprehensive income (loss) |  | — |  | — |  | — |  | 81 |  | (127) |  | (46) |  | — |  | (46) |
Total comprehensive income |  | — |  | — |  | — |  | 81 |  | 644 |  | 725 |  | 17 |  | 742 |
Common shares issued under employee stock option plan |  | — |  | 11 |  | (1) |  | — |  | — |  | 10 |  | — |  | 10 |
Other share-based compensation |  | — |  | — |  | (4) |  | — |  | (9) |  | (13) |  | — |  | (13) |
Repurchase of preferred shares |  | (43) |  | — |  | 12 |  | — |  | — |  | (31) |  | — |  | (31) |
Dividends declared on BCE common and preferred shares |  | — |  | — |  | — |  | — |  | (929) |  | (929) |  | — |  | (929) |
Dividends declared by subsidiaries to non-controlling interest |  | — |  | — |  | — |  | — |  | — |  | — |  | (21) |  | (21) |
Settlement of cash flow hedges transferred to the cost basis of hedged items |  | — |  | — |  | — |  | (6) |  | — |  | (6) |  | — |  | (6) |
Other |  | — |  | — |  | — |  | (17) |  | 17 |  | — |  | — |  | — |
Balance at March 31, 2023 |  | 3,827 |  | 20,851 |  | 1,179 |  | 3 |  | (3,926) |  | 21,934 |  | 333 |  | 22,267 |

49

Consolidated statements of cash flows

For the period ended March 31 |  |  |  |
(in millions of Canadian dollars) (unaudited) | Note | 2024 | 2023 |  |
Cash flows from operating activities |  |  |  |  |
Net earnings |  | 457 |  | 788 |  |  |
Adjustments to reconcile net earnings to cash flows from operating activities |  |  |  |  |
Severance, acquisition and other costs | 5 | 229 |  | 49 |  |  |
Depreciation and amortization |  | 1,262 |  | 1,201 |  |  |
Post-employment benefit plans cost | 10 | 44 |  | 31 |  |  |
Net interest expense |  | 384 |  | 330 |  |  |
Impairment of assets | 6 | 13 |  | 34 |  |  |
Losses on investments |  | 6 |  | — |  |  |
Income taxes |  | 166 |  | 270 |  |  |
Contributions to post-employment benefit plans |  | (18) |  | (15) |  |  |
Payments under other post-employment benefit plans |  | (16) |  | (15) |  |  |
Severance and other costs paid |  | (46) |  | (25) |  |  |
Interest paid |  | (448) |  | (439) |  |  |
Income taxes paid (net of refunds) |  | (335) |  | (164) |  |  |
Acquisition and other costs paid |  | (15) |  | — |  |  |
Change in contract assets |  | 28 |  | 45 |  |  |
Change in wireless device financing plan receivables |  | 57 |  | 41 |  |  |
Net change in operating assets and liabilities |  | (636) |  | (884) |  |  |
Cash flows from operating activities |  | 1,132 |  | 1,247 |  |  |
Cash flows used in investing activities |  |  |  |  |
Capital expenditures |  | (1,002) |  | (1,086) |  |  |
Short-term investments |  | 300 |  | — |  |  |
Business acquisitions |  | (82) |  | (25) |  |  |
Spectrum licences |  | (104) |  | (11) |  |  |
Other investing activities |  | (10) |  | 31 |  |  |
Cash flows used in investing activities |  | (898) |  | (1,091) |  |  |
Cash flows (used in) from financing activities |  |  |  |  |
Increase (decrease) in notes payable |  | 979 |  | (83) |  |  |
Increase in securitized receivables |  | — |  | 500 |  |  |
Issue of long-term debt | 9 |  | 2,191 |  | 1,504 |  |  |
Repayment of long-term debt |  | (2,113) |  | (299) |  |  |
Repurchase of a financial liability |  | — |  | (149) |  |  |
Issue of common shares |  | — |  | 10 |  |  |
Purchase of shares for settlement of share-based payments |  | (104) |  | (93) |  |  |
Repurchase of preferred shares | 12 | (38) |  | (31) |  |  |
Cash dividends paid on common shares |  | (883) |  | (839) |  |  |
Cash dividends paid on preferred shares |  | (46) |  | (55) |  |  |
Cash dividends paid by subsidiaries to non-controlling interest |  | (14) |  | (21) |  |  |
Other financing activities |  | (18) |  | (8) |  |  |
Cash flows (used in) from financing activities |  | (46) |  | 436 |  |  |
Net increase in cash |  | 242 |  | 552 |  |  |
Cash at beginning of period |  | 547 |  | 99 |  |  |
Cash at end of period |  | 789 |  | 651 |  |  |
Net (decrease) increase in cash equivalents |  | (54) |  | 40 |  |  |
Cash equivalents at beginning of period |  | 225 |  | 50 |  |  |
Cash equivalents at end of period |  | 171 |  | 90 |  |  |

50 BCE Inc. 2024 FIRST QUARTER SHAREHOLDER REPORT

Notes to consolidated financial statements
These consolidated interim financial statements (financial statements) should be read in conjunction with BCE’s 2023 annual consolidated financial statements, approved by BCE’s board of directors on March 7, 2024.
These notes are unaudited.
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.

Note 1 Corporate information
BCE is incorporated and domiciled in Canada. BCE’s head office is located at 1, Carrefour Alexander-Graham-Bell, Verdun, Québec, Canada. BCE is a communications company providing wireless, wireline, Internet and television (TV) services to residential, business and wholesale customers in Canada. Our Bell Media segment provides conventional TV, specialty TV, pay TV, streaming services, digital media services, radio broadcasting services and out-of-home (OOH) advertising services to customers in Canada.

Note 2 Basis of presentation and material accounting policies
These financial statements were prepared in accordance with International Financial Reporting Standards (IFRS), as issued by the International Accounting Standards Board (IASB), under International Accounting Standard (IAS) 34 - Interim Financial Reporting and were approved by BCE’s board of directors on May 1, 2024. These financial statements were prepared using the same basis of presentation, accounting policies and methods of computation as outlined in Note 2, Material accounting policies in our consolidated financial statements for the year ended December 31, 2023.
These financial statements do not include all of the notes required in annual financial statements.
All amounts are in millions of Canadian dollars, except where noted.

Future changes in accounting standards

The following accounting standard issued by the IASB has not yet been adopted by BCE.

Standard | Description | Impact | Effective date
IFRS 18 - Presentation and Disclosure in Financial Statements | Sets out requirements and guidance on presentation and disclosure in financial statements, including: •presentation in the income statements of income and expenses within defined categories - operating, investing, financing, income taxes and discontinued operations •presentation in the income statements of new defined subtotals - operating profit and profit before financing and income taxes •disclosure of explanations of management-defined performance measures that are related to the income statements •enhanced guidance on aggregation and disaggregation of information and whether to provide information in the financial statements or in the notes •disclosure of specified expenses by nature IFRS 18 replaces IAS 1 - Presentation of Financial Statements but carries forward many of the requirements from IAS 1 unchanged. | We are currently assessing the impact of this standard. | Annual reporting periods beginning on or after January 1, 2027. Early application is permitted.

51

Note 3 Segmented information
Our results are reported in two segments: Bell Communication and Technology Services (Bell CTS) and Bell Media. Our segments reflect how we manage our business and how we classify our operations for planning and measuring performance.
The following tables present financial information by segment for the three month periods ended March 31, 2024 and 2023.

For the three month period ended March 31, 2024 | Note |  | Bell CTS | Bell Media | Inter- segment elimina- tions | BCE
Operating revenues |  |  |  |  |  |
External service revenues |  |  | 4,550 |  | 642 |  | — |  | 5,192 |
Inter-segment service revenues |  |  | 6 |  | 83 |  | (89) |  | — |
Operating service revenues |  |  | 4,556 |  | 725 |  | (89) |  | 5,192 |
External/Operating product revenues |  |  | 819 |  | — |  | — |  | 819 |
Total external revenues |  |  | 5,369 |  | 642 |  | — |  | 6,011 |
Total inter-segment revenues |  |  | 6 |  | 83 |  | (89) |  | — |
Total operating revenues |  |  | 5,375 |  | 725 |  | (89) |  | 6,011 |
Operating costs | 4 |  | (2,927) |  | (608) |  | 89 |  | (3,446) |
Adjusted EBITDA (1) |  |  | 2,448 |  | 117 |  | — |  | 2,565 |
Severance, acquisition and other costs | 5 |  |  |  |  | (229) |
Depreciation and amortization |  |  |  |  |  | (1,262) |
Finance costs |  |  |  |  |  |
Interest expense |  |  |  |  |  | (416) |
Net return on post-employment benefit plans | 10 |  |  |  |  | 16 |
Impairment of assets | 6 |  |  |  |  | (13) |
Other expense | 7 |  |  |  |  | (38) |
Income taxes |  |  |  |  |  | (166) |
Net earnings |  |  |  |  |  | 457 |

(1) The chief operating decision maker uses primarily one measure of profit to make decisions and assess performance, being operating revenues less operating costs.

For the three month period ended March 31, 2023 | Note |  | Bell CTS | Bell Media | Inter- segment elimina- tions | BCE
Operating revenues |  |  |  |  |  |
| External service revenues |  |  | 4,528 |  | 694 |  | — |  | 5,222 |
| Inter-segment service revenues |  |  | 7 |  | 86 |  | (93) |  | — |
Operating service revenues |  |  | 4,535 |  | 780 |  | (93) |  | 5,222 |
External/Operating product revenues |  |  | 832 |  | — |  | — |  | 832 |
| Total external revenues |  |  | 5,360 |  | 694 |  | — |  | 6,054 |
| Total inter-segment revenues |  |  | 7 |  | 86 |  | (93) |  | — |
Total operating revenues |  |  | 5,367 |  | 780 |  | (93) |  | 6,054 |
Operating costs | 4 |  | (2,961) |  | (648) |  | 93 |  | (3,516) |
Adjusted EBITDA (1) |  |  | 2,406 |  | 132 |  | — |  | 2,538 |
Severance, acquisition and other costs | 5 |  |  |  |  | (49) |
Depreciation and amortization |  |  |  |  |  | (1,201) |
Finance costs |  |  |  |  |  |
| Interest expense |  |  |  |  |  | (344) |
| Net return on post-employment benefit plans | 10 |  |  |  |  | 27 |
Impairment of assets | 6 |  |  |  |  | (34) |
Other income | 7 |  |  |  |  | 121 |
Income taxes |  |  |  |  |  | (270) |
Net earnings |  |  |  |  |  | 788 |

(1) The chief operating decision maker uses primarily one measure of profit to make decisions and assess performance, being operating revenues less operating costs.
52 BCE Inc. 2024 FIRST QUARTER SHAREHOLDER REPORT

Revenues by services and products

For the period ended March 31 | 2024 | 2023 |  |
Services(1) |  |  |  |
Wireless | 1,774 |  | 1,723 |  |  |
Wireline data | 2,012 |  | 2,001 |  |  |
Wireline voice | 683 |  | 726 |  |  |
Media | 642 |  | 694 |  |  |
Other wireline services | 81 |  | 78 |  |  |
Total services | 5,192 |  | 5,222 |  |  |
Products(2) |  |  |  |
Wireless | 684 |  | 626 |  |  |
Wireline | 135 |  | 206 |  |  |
Total products | 819 |  | 832 |  |  |
Total operating revenues | 6,011 |  | 6,054 |  |  |

(1)Our service revenues are generally recognized over time.
(2)Our product revenues are generally recognized at a point in time.

Note 4 Operating costs

For the period ended March 31 | Note | 2024 | 2023 |  |
Labour costs |  |  |  |  |
| Wages, salaries and related taxes and benefits |  | (1,082) |  | (1,102) |  |  |
| Post-employment benefit plans service cost (net of capitalized amounts) | 10 | (60) |  | (58) |  |  |
| Other labour costs (1) |  | (246) |  | (259) |  |  |
Less: |  |  |  |  |
| Capitalized labour |  | 291 |  | 303 |  |  |
Total labour costs |  | (1,097) |  | (1,116) |  |  |
Cost of revenues (2) |  | (1,875) |  | (1,954) |  |  |
Other operating costs (3) |  | (474) |  | (446) |  |  |
Total operating costs |  | (3,446) |  | (3,516) |  |  |

(1)Other labour costs include contractor and outsourcing costs.
(2)Cost of revenues includes costs of wireless devices and other equipment sold, network and content costs, and payments to other carriers.
(3)Other operating costs include marketing, advertising and sales commission costs, bad debt expense, taxes other than income taxes, information technology costs, professional service fees and rent.

Note 5 Severance, acquisition and other costs

For the period ended March 31 | 2024 | 2023 |  |
Severance | (234) |  | (29) |  |  |
Acquisition and other | 5 |  | (20) |  |  |
Total severance, acquisition and other costs | (229) |  | (49) |  |  |

Severance costs
Severance costs consist of charges related to involuntary and voluntary employee terminations, including costs of the previously announced workforce reductions incurred up to March 31, 2024.
53

Acquisition and other costs
Acquisition and other costs consist of transaction costs, such as legal and financial advisory fees, related to completed or potential acquisitions, employee severance costs related to the purchase of a business, the costs to integrate acquired companies into our operations, costs relating to litigation and regulatory decisions, when they are significant, and other costs.

Note 6 Impairment of assets
Impairment charges for the three months ended March 31, 2024 and 2023 of $13 million and $34 million, respectively, related mainly to right-of-use assets for certain office spaces we ceased using as part of our real estate optimization strategy as a result of our hybrid work policy.

Note 7 Other (expense) income

For the period ended March 31 |  | 2024 | 2023 |  |
Net mark-to-market (losses) gains on derivatives used to economically hedge equity settled share-based compensation plans |  | (90) |  | 18 |  |  |
(Losses) gains on retirements and disposals of property, plant and equipment and intangible assets |  | (7) |  | 47 |  |  |
Losses on investments |  | (6) |  | — |  |  |
Interest income |  | 32 |  | 14 |  |  |
Equity income from investments in associates and joint ventures |  |  |  |  |
| Operations |  | 15 |  | 18 |  |  |
Other |  | 18 |  | 24 |  |  |
Total other (expense) income |  | (38) |  | 121 |  |  |

Gains on disposals of property, plant and equipment
In Q1 2023, we sold land for total proceeds of $54 million and recorded a gain of $53 million as part of our real estate optimization strategy.

Note 8 Earnings per share
The following table shows the components used in the calculation of basic and diluted net earnings per common share for earnings attributable to common shareholders.

For the period ended March 31 | 2024 | 2023 |  |
Net earnings attributable to common shareholders - basic | 402 |  | 725 |  |  |
Dividends declared per common share (in dollars) | 0.9975 | 0.9675 |  |
Weighted average number of common shares outstanding (in millions) |  |  |  |
| Weighted average number of common shares outstanding - basic | 912.3 |  | 912.1 |  |  |
| Assumed exercise of stock options (1) | — |  | 0.2 |  |  |
Weighted average number of common shares outstanding - diluted (in millions) | 912.3 |  | 912.3 |  |  |

(1)The calculation of the assumed exercise of stock options includes the effect of the average unrecognized future compensation cost of dilutive options. It excludes options for which the exercise price is higher than the average market value of a BCE common share. The number of excluded options was 6,599,815 for the first quarter of 2024, compared to 3,250,443 for the first quarter of 2023.
54 BCE Inc. 2024 FIRST QUARTER SHAREHOLDER REPORT

Note 9 Debt
On February 15, 2024, Bell Canada issued, under its 2016 trust indenture, 5.200% Series US-9 Notes, with a principal amount of $700 million in U.S. dollars ($942 million in Canadian dollars), which mature on February 15, 2034. The Series US-9 Notes have been hedged for foreign currency fluctuations with cross currency interest rate swaps. Additionally, on the same date, Bell Canada issued, under its 2016 trust indenture, 5.550% Series US-10 Notes, with a principal amount of $750 million in U.S. dollars ($1,009 million in Canadian dollars), which mature on February 15, 2054. The Series US-10 Notes have been hedged for foreign currency fluctuations with cross currency interest rate swaps and in addition, $336 million in Canadian dollars have been hedged for changes in fair value with interest rate swaps. See Note 11, Financial assets and liabilities, for additional details.
The Series US-9 and US-10 Notes are fully and unconditionally guaranteed by BCE.
In Q1 2024, Bell Canada reclassified its 2.75% Series M-49 medium-term note (MTN) debentures with a total principal amount of $600 million and its 3.35% Series M-47 MTN debentures with a total principal amount of $1,500 million, which mature on January 29, 2025 and March 12, 2025, respectively, from long-term debt to debt due within one year.

Note 10 Post-employment benefit plans
Post-employment benefit plans cost
We provide pension and other benefits for most of our employees. These include defined benefit (DB) pension plans, defined contribution (DC) pension plans and other post-employment benefits (OPEBs).
Components of post-employment benefit plans service cost

For the period ended March 31 | 2024 | 2023 |  |
DB pension | (33) |  | (32) |  |  |
DC pension | (43) |  | (38) |  |  |
Less: |  |  |  |
| Capitalized benefit plans cost | 16 |  | 12 |  |  |
Total post-employment benefit plans service cost | (60) |  | (58) |  |  |

Components of post-employment benefit plans financing income

For the period ended March 31 | 2024 | 2023 |  |
DB pension | 24 |  | 37 |  |  |
OPEBs | (8) |  | (10) |  |  |
Total net return on post-employment benefit plans | 16 |  | 27 |  |  |

55

Note 11 Financial assets and liabilities
Fair value
The following table provides the fair value details of financial instruments measured at amortized cost in the statements of financial position.

|  |  | March 31, 2024 | December 31, 2023
| Classification | Fair value methodology | Carrying value | Fair value | Carrying value | Fair value
Debt securities and other debt | Debt due within one year and long-term debt | Quoted market price of debt | 30,021 |  | 28,607 |  | 29,049 |  | 28,225 |

The following table provides the fair value details of financial instruments measured at fair value in the statements of financial position.

|  |  | Fair value
| Classification | Carrying value of asset (liability) | Quoted prices in active markets for identical assets (level 1) | Observable market data (level 2)(1) | Non-observable market inputs (level 3)(2)
March 31, 2024 |  |  |  |  |
Publicly-traded and privately-held investments (3) | Other non-current assets | 582 |  | 7 |  | — |  | 575 |
Derivative financial instruments | Other current assets, trade payables and other liabilities, other non-current assets and liabilities | (292) |  | — |  | (292) |  | — |
Other | Trade payables and other liabilities and other non-current assets | 145 |  | — |  | 217 |  | (72) |
December 31, 2023 |  |  |  |  |
Publicly-traded and privately-held investments (3) | Other non-current assets | 587 |  | 10 |  | — |  | 577 |
Derivative financial instruments | Other current assets, trade payables and other liabilities, other non-current assets and liabilities | (488) |  | — |  | (488) |  | — |
Other | Other non-current assets and liabilities | 147 |  | — |  | 216 |  | (69) |

(1)Observable market data such as equity prices, interest rates, swap rate curves and foreign currency exchange rates.
(2)Non-observable market inputs such as discounted cash flows and revenue and earnings multiples. For certain privately-held investments, changes in our valuation assumption relating to revenue and earnings multiples may result in a significant increase (decrease) in the fair value of our level 3 financial instruments.
(3)Unrealized gains and losses are recorded in Other comprehensive income (loss) in the statements of comprehensive income and are reclassified from Accumulated other comprehensive income (loss) to the Deficit in the statements of financial position when realized.
Market risk
Currency exposures
In 2024, we entered into cross currency interest rate swaps with a notional amount of $700 million in U.S. dollars ($942 million in Canadian dollars) to hedge the U.S. currency exposure of our US-9 Notes maturing in 2034. The fair value of the cross currency interest rate swaps at March 31, 2024 was a net liability of $2 million recognized in Other current assets and Other non-current liabilities in the statements of financial position. See Note 9, Debt, for additional details.
In 2024, we entered into cross currency interest rate swaps with a notional amount of $750 million in U.S. dollars ($1,009 million in Canadian dollars) to hedge the U.S. currency exposure of our US-10 Notes maturing in 2054. In
56 BCE Inc. 2024 FIRST QUARTER SHAREHOLDER REPORT

connection with these swaps, cross currency basis rate swaps outstanding at December 31, 2023 with a notional amount of $644 million were settled. The fair value of the cross currency interest rate swaps at March 31, 2024 was a net liability of $8 million recognized in Other current assets, Other non-current assets, and Other non-current liabilities in the statements of financial position. See Note 9, Debt, for additional details.
In 2024, we entered into cross currency interest rate swaps with a notional amount of $180 million in U.S. dollars ($242 million in Canadian dollars) to hedge the U.S. currency exposure of outstanding loans maturing in 2026 under our Bell Mobility uncommitted trade loan agreement. The fair value of the cross currency interest rate swaps at March 31, 2024 was a net asset of $1 million recognized in Other current assets, Other non-current assets and Other non-current liabilities in the statements of financial position.
A 10% depreciation (appreciation) in the value of the Canadian dollar relative to the U.S. dollar would result in a gain of $17 million (loss of $73 million) recognized in net earnings at March 31, 2024 and a gain of $142 million (loss of $140 million) recognized in Other comprehensive income (loss) at March 31, 2024, with all other variables held constant.
The following table provides further details on our outstanding foreign currency forward contracts and options at March 31, 2024.

Type of hedge | Buy currency | Amount to receive | Sell currency | Amount to pay | Maturity | Hedged item
Cash flow (1) | USD | 1,191 |  | CAD | 1,608 |  | 2024 | Loans
Cash flow | USD | 905 |  | CAD | 1,203 |  | 2024 | Commercial paper
Cash flow | USD | 489 |  | CAD | 622 |  | 2024 | Anticipated purchases
Cash flow | PHP | 2,173 |  | CAD | 52 |  | 2024 | Anticipated purchases
Cash flow | USD | 563 |  | CAD | 734 |  | 2025 | Anticipated purchases
Cash flow | USD | 180 |  | CAD | 242 |  | 2026 | Anticipated purchases
Economic | USD | 115 |  | CAD | 151 |  | 2024 | Anticipated purchases
Economic - options (2) | USD | 45 |  | CAD | 61 |  | 2024 | Anticipated purchases
Economic - call options | USD | 184 |  | CAD | 232 |  | 2024 | Anticipated purchases
Economic - call options | CAD | 168 |  | USD | 117 |  | 2024 | Anticipated purchases
Economic - put options | USD | 435 |  | CAD | 566 |  | 2024 | Anticipated purchases
Economic | USD | 120 |  | CAD | 158 |  | 2025 |  | Anticipated purchases
Economic - options (2) | USD | 65 |  | CAD | 85 |  | 2025 |  | Anticipated purchases
Economic - call options | USD | 540 |  | CAD | 694 |  | 2025 |  | Anticipated purchases
Economic - put options | USD | 540 |  | CAD | 698 |  | 2025 |  | Anticipated purchases

(1) Forward contracts to hedge loans secured by receivables under our securitization program.
(2) Foreign currency options with a leverage provision and a profit cap limitation.
Interest rate exposures
In 2024, we entered into forward starting interest rate swaps, effective from 2026, with a notional amount of $336 million to hedge the fair value of our US-10 Notes maturing in 2054. The fair value of the interest rate swaps at March 31, 2024 was an asset of $4 million recognized in Other non-current assets in the statements of financial position. See Note 9, Debt, for additional details.
A 1% increase (decrease) in interest rates would result in a loss (gain) of $6 million recognized in net earnings for the three months ended March 31, 2024, with all other variables held constant.
Equity price exposures
We use equity forward contracts on BCE’s common shares to hedge economically the cash flow exposure related to the settlement of equity settled share-based compensation plans. The fair value of our equity forward contracts at March 31, 2024 and December 31, 2023 was a net liability of $239 million and $162 million, respectively, recognized in Other current assets, Trade payables and other liabilities and Other non-current liabilities in the statements of financial position. A (loss) gain of ($90 million) and $18 million for the three months ended March 31, 2024 and 2023, respectively, relating to these equity forward contracts is recognized in Other (expense) income in the income statements.
A 5% increase (decrease) in the market price of BCE’s common shares would result in a gain (loss) of $25 million recognized in net earnings at March 31, 2024, with all other variables held constant.
57

Note 12 Share capital
Normal course issuer Bid for BCE First Preferred Shares
In Q1 2024, BCE repurchased and canceled 2,113,588 First Preferred Shares with a stated capital of $53 million for a total cost of $38 million. The remaining $15 million was recorded to contributed surplus.

Note 13 Share-based payments
The following share-based payment amounts are included in the income statements as operating costs.

For the period ended March 31 | 2024 | 2023 |  |
Restricted share units (RSUs) and performance share units (PSUs) | (25) |  | (34) |  |  |
Employee savings plan and deferred share units | (9) |  | (9) |  |  |
Total share-based payments | (34) |  | (43) |  |  |

The following tables summarize the change in outstanding RSUs/PSUs and stock options for the period ended March 31, 2024.
RSUs/PSUs

| Number of RSUs/PSUs
Outstanding, January 1, 2024 | 3,412,812 |
Granted | 1,123,985 |
Dividends credited | 59,526 |
Settled | (1,249,941) |
Forfeited | (6,756) |
Outstanding, March 31, 2024 | 3,339,626 |

Stock options

|  | Number of options | Weighted average exercise price ($)
Outstanding, January 1, 2024 |  | 7,484,561 |  | 61 |
Forfeited or expired |  | (884,746) |  | 59 |
Outstanding and exercisable, March 31, 2024 |  | 6,599,815 |  | 61 |

58 BCE Inc. 2024 FIRST QUARTER SHAREHOLDER REPORT