Q4Supplementary Financial Information

Fourth Quarter 2019

BCE Investor Relations

Thane Fotopoulos 514-870-4619thane.fotopoulos@bell.ca

BCE(1) (2) (3)

Consolidated Operational Data

Q4

TOTAL

Q4

TOTAL

(In millions of Canadian dollars, except share amounts) (unaudited)

2019

2018

$

change

% change

2019

2018

$

change

% change

Operating revenues

5,276

20,737

Service

5,231

45

0.9%

20,441

296

1.4%

Product

1,040

984

56

5.7%

3,227

3,027

200

6.6%

Total operating revenues

6,316

6,215

101

1.6%

23,964

23,468

496

2.1%

Operating costs (A)

(3,748)

(3,756)

8

0.2%

(13,611)

(13,667)

56

0.4%

Post-employment benefit plans service cost

(60)

(65)

5

7.7%

(247)

(266)

19

7.1%

Adjusted EBITDA (4)

2,508

2,394

114

4.8%

10,106

9,535

571

6.0%

Adjusted EBITDA margin (4)

39.7%

38.5%

1.2 pts

42.2%

40.6%

1.6 pts

Severance, acquisition and other costs

(28)

(58)

30

51.7%

(114)

(136)

22

16.2%

Depreciation

(865)

(799)

(66)

(8.3%)

(3,496)

(3,145)

(351)

(11.2%)

Amortization

(228)

(216)

(12)

(5.6%)

(902)

(869)

(33)

(3.8%)

Finance costs

(286)

(1,132)

Interest expense

(259)

(27)

(10.4%)

(1,000)

(132)

(13.2%)

Interest on post-employment benefit obligations

(16)

(18)

2

11.1%

(63)

(69)

6

8.7%

Other expense

(119)

(158)

39

24.7%

(13)

(348)

335

96.3%

Income taxes

(243)

(244)

1

0.4%

(1,133)

(995)

(138)

(13.9%)

Net earnings

723

642

81

12.6%

3,253

2,973

280

9.4%

Net earnings attributable to:

672

3,040

Common shareholders

606

66

10.9%

2,785

255

9.2%

Preferred shareholders

38

37

1

2.7%

151

144

7

4.9%

Non-controlling interest

13

(1)

14

n.m.

62

44

18

40.9%

Net earnings

723

642

81

12.6%

3,253

2,973

280

9.4%

Net earnings per common share - basic and diluted

$

0.74

$

0.68

$

0.06

8.8%

$

3.37

$

3.10

$

0.27

8.7%

Dividends per common share

$

0.7925

$

0.7550

$

0.0375

5.0%

$

3.1700

$

3.0200

$

0.1500

5.0%

Weighted average number of common shares outstanding - basic (millions)

903.8

898.1

900.8

898.6

Weighted average number of common shares outstanding - diluted (millions)

904.8

898.4

901.4

898.9

Number of common shares outstanding (millions)

903.9

898.2

903.9

898.2

Adjusted net earnings and EPS

Net earnings attributable to common shareholders

672

606

66

10.9%

3,040

2,785

255

9.2%

Severance, acquisition and other costs

20

44

(24)

(54.5%)

83

100

(17)

(17.0%)

Net mark-to-market losses (gains) on derivatives used to economically hedge equity settled

share-based compensation plans

45

(25)

70

n.m.

(101)

58

(159)

n.m.

Net (gains) losses on investments

(13)

27

(40)

n.m.

44

47

(3)

(6.4%)

Early debt redemption costs

-

-

-

-

13

15

(2)

(13.3%)

Impairment charges

70

142

(72)

(50.7%)

74

146

(72)

(49.3%)

Adjusted net earnings (4)

794

794

-

-

3,153

3,151

2

0.1%

Impact on net earnings per share

$

0.14

$

0.21

$

(0.07)

(33.3%)

$

0.13

$

0.41

$

(0.28)

(68.3%)

Adjusted EPS (4)

$

0.88

$

0.89

$

(0.01)

(1.1%)

$

3.50

$

3.51

$

(0.01)

(0.3%)

n.m. : not meaningful

  1. Excludespost-employment benefit plans service cost

BCE Supplementary Financial Information - Fourth Quarter 2019 Page 2

BCE

Consolidated Operational Data - Historical Trend

TOTAL

TOTAL

(In millions of Canadian dollars, except share amounts) (unaudited)

2019

Q4 19

Q3 19

Q2 19

Q1 19

2018

Q4 18

Q3 18

Q2 18

Q1 18

Operating revenues

20,737

5,276

Service

5,185

5,231

5,045

20,441

5,231

5,117

5,129

4,964

Product

3,227

1,040

799

699

689

3,027

984

760

657

626

Total operating revenues

23,964

6,316

5,984

5,930

5,734

23,468

6,215

5,877

5,786

5,590

Operating costs (A)

(13,611)

(3,748)

(3,330)

(3,277)

(3,256)

(13,667)

(3,756)

(3,355)

(3,293)

(3,263)

Post-employment benefit plans service cost

(247)

(60)

(60)

(58)

(69)

(266)

(65)

(65)

(63)

(73)

Adjusted EBITDA

10,106

2,508

2,594

2,595

2,409

9,535

2,394

2,457

2,430

2,254

Adjusted EBITDA margin

42.2%

39.7%

43.3%

43.8%

42.0%

40.6%

38.5%

41.8%

42.0%

40.3%

Severance, acquisition and other costs

(114)

(28)

(23)

(39)

(24)

(136)

(58)

(54)

(24)

-

Depreciation

(3,496)

(865)

(861)

(888)

(882)

(3,145)

(799)

(779)

(787)

(780)

Amortization

(902)

(228)

(230)

(223)

(221)

(869)

(216)

(220)

(221)

(212)

Finance costs

Interest expense

(1,132)

(286)

(282)

(281)

(283)

(1,000)

(259)

(255)

(246)

(240)

Interest on post-employment benefit obligations

(63)

(16)

(16)

(15)

(16)

(69)

(18)

(17)

(17)

(17)

Other (expense) income

(13)

(119)

61

(56)

101

(348)

(158)

(41)

(88)

(61)

Income taxes

(1,133)

(243)

(321)

(276)

(293)

(995)

(244)

(224)

(292)

(235)

Net earnings

3,253

723

922

817

791

2,973

642

867

755

709

Net earnings attributable to:

3,040

672

Common shareholders

867

761

740

2,785

606

814

704

661

Preferred shareholders

151

38

37

38

38

144

37

36

35

36

Non-controlling interest

62

13

18

18

13

44

(1)

17

16

12

Net earnings

3,253

723

922

817

791

2,973

642

867

755

709

Net earnings per common share - basic and diluted

$

3.37

$

0.74

$

0.96

$

0.85

$

0.82

$

3.10

$

0.68

$

0.90

$

0.79

$

0.73

Dividends per common share

$

3.1700

$

0.7925

$

0.7925

$

0.7925

$

0.7925

$

3.0200

$

0.7550

$

0.7550

$

0.7550

$

0.7550

Weighted average number of common shares outstanding - basic (millions)

900.8

903.8

901.4

899.5

898.4

898.6

898.1

898.0

898.0

900.2

Weighted average number of common shares outstanding - diluted (millions)

901.4

904.8

902.2

900.3

898.7

898.9

898.4

898.3

898.3

900.6

Number of common shares outstanding (millions)

903.9

903.9

903.7

900.1

898.8

898.2

898.2

898.0

898.0

898.0

Adjusted net earnings and EPS

Net earnings attributable to common shareholders

3,040

672

867

761

740

2,785

606

814

704

661

Severance, acquisition and other costs

83

20

17

28

18

100

44

39

18

(1)

Net mark-to-market (gains) losses on derivatives used to economically hedge equity

settled share-based compensation plans

(101)

45

(64)

(9)

(73)

58

(25)

5

22

56

Net losses (gains) on investments

44

(13)

-

53

4

47

27

-

20

-

Early debt redemption costs

13

-

-

13

-

15

-

2

13

-

Impairment charges

74

70

-

1

3

146

142

1

-

3

Adjusted net earnings

3,153

794

820

847

692

3,151

794

861

777

719

Impact on net earnings per share

$

0.13

$

0.14

$

(0.05)

$

0.09

$

(0.05)

$

0.41

$

0.21

$

0.06

$

0.07

$

0.07

Adjusted EPS

$

3.50

$

0.88

$

0.91

$

0.94

$

0.77

$

3.51

$

0.89

$

0.96

$

0.86

$

0.80

(A)Excludes post-employment benefit plans service cost

BCE Supplementary Financial Information - Fourth Quarter 2019 Page 3

BCE(1) (2) (3)

Segmented Data

Q4

Q4

TOTAL

TOTAL

(In millions of Canadian dollars, except where otherwise indicated) (unaudited)

2019

2018

$ change

% change

2019

2018

$ change

% change

Operating revenues

Bell Wireless

2,493

2,407

86

3.6%

9,142

8,818

324

3.7%

Bell Wireline

3,138

3,137

1

-

12,356

12,267

89

0.7%

Bell Media

879

850

29

3.4%

3,217

3,121

96

3.1%

Inter-segment eliminations

(194)

(179)

(15)

(8.4%)

(751)

(738)

(13)

(1.8%)

Total

6,316

6,215

101

1.6%

23,964

23,468

496

2.1%

Operating costs

Bell Wireless

(1,549)

(1,528)

(21)

(1.4%)

(5,300)

(5,297)

(3)

(0.1%)

Bell Wireline

(1,779)

(1,798)

19

1.1%

(6,942)

(6,946)

4

0.1%

Bell Media

(674)

(674)

-

-

(2,367)

(2,428)

61

2.5%

Inter-segment eliminations

194

179

15

8.4%

751

738

13

1.8%

Total

(3,808)

(3,821)

13

0.3%

(13,858)

(13,933)

75

0.5%

Adjusted EBITDA

Bell Wireless

944

879

65

7.4%

3,842

3,521

321

9.1%

Margin

37.9%

36.5%

1.4 pts

42.0%

39.9%

2.1 pts

Bell Wireline

1,359

1,339

20

1.5%

5,414

5,321

93

1.7%

Margin

43.3%

42.7%

0.6 pts

43.8%

43.4%

0.4 pts

Bell Media

205

176

29

16.5%

850

693

157

22.7%

Margin

23.3%

20.7%

2.6 pts

26.4%

22.2%

4.2 pts

Total

2,508

2,394

114

4.8%

10,106

9,535

571

6.0%

Margin

39.7%

38.5%

1.2 pts

42.2%

40.6%

1.6 pts

Capital expenditures

Bell Wireless

211

133

(78)

(58.6%)

697

664

(33)

(5.0%)

Capital intensity (5)

8.5%

5.5%

(3.0) pts

7.6%

7.5%

(0.1) pts

Bell Wireline

905

809

(96)

(11.9%)

3,183

3,193

10

0.3%

Capital intensity

28.8%

25.8%

(3.0) pts

25.8%

26.0%

0.2 pts

Bell Media

37

32

(5)

(15.6%)

108

114

6

5.3%

Capital intensity

4.2%

3.8%

(0.4) pts

3.4%

3.7%

0.3 pts

Total

1,153

974

(179)

(18.4%)

3,988

3,971

(17)

(0.4%)

Capital intensity

18.3%

15.7%

(2.6) pts

16.6%

16.9%

0.3 pts

BCE Supplementary Financial Information - Fourth Quarter 2019 Page 4

BCE

Segmented Data - Historical Trend

TOTAL

TOTAL

(In millions of Canadian dollars, except where otherwise indicated) (unaudited)

2019

Q4 19

Q3 19

Q2 19

Q1 19

2018

Q4 18

Q3 18

Q2 18

Q1 18

Operating revenues

Bell Wireless

9,142

2,493

2,348

2,189

2,112

8,818

2,407

2,269

2,121

2,021

Bell Wireline

12,356

3,138

3,066

3,088

3,064

12,267

3,137

3,060

3,061

3,009

Bell Media

3,217

879

751

842

745

3,121

850

731

791

749

Inter-segment eliminations

(751)

(194)

(181)

(189)

(187)

(738)

(179)

(183)

(187)

(189)

Total

23,964

6,316

5,984

5,930

5,734

23,468

6,215

5,877

5,786

5,590

Operating costs

Bell Wireless

(5,300)

(1,549)

(1,335)

(1,209)

(1,207)

(5,297)

(1,528)

(1,330)

(1,229)

(1,210)

Bell Wireline

(6,942)

(1,779)

(1,711)

(1,727)

(1,725)

(6,946)

(1,798)

(1,724)

(1,728)

(1,696)

Bell Media

(2,367)

(674)

(525)

(588)

(580)

(2,428)

(674)

(549)

(586)

(619)

Inter-segment eliminations

751

194

181

189

187

738

179

183

187

189

Total

(13,858)

(3,808)

(3,390)

(3,335)

(3,325)

(13,933)

(3,821)

(3,420)

(3,356)

(3,336)

Adjusted EBITDA

Bell Wireless

3,842

944

1,013

980

905

3,521

879

939

892

811

Margin

42.0%

37.9%

43.1%

44.8%

42.9%

39.9%

36.5%

41.4%

42.1%

40.1%

Bell Wireline

5,414

1,359

1,355

1,361

1,339

5,321

1,339

1,336

1,333

1,313

Margin

43.8%

43.3%

44.2%

44.1%

43.7%

43.4%

42.7%

43.7%

43.5%

43.6%

Bell Media

850

205

226

254

165

693

176

182

205

130

Margin

26.4%

23.3%

30.1%

30.2%

22.1%

22.2%

20.7%

24.9%

25.9%

17.4%

Total

10,106

2,508

2,594

2,595

2,409

9,535

2,394

2,457

2,430

2,254

Margin

42.2%

39.7%

43.3%

43.8%

42.0%

40.6%

38.5%

41.8%

42.0%

40.3%

Capital expenditures

Bell Wireless

697

211

167

168

151

664

133

183

181

167

Capital intensity

7.6%

8.5%

7.1%

7.7%

7.1%

7.5%

5.5%

8.1%

8.5%

8.3%

Bell Wireline

3,183

905

824

780

674

3,193

809

797

843

744

Capital intensity

25.8%

28.8%

26.9%

25.3%

22.0%

26.0%

25.8%

26.0%

27.5%

24.7%

Bell Media

108

37

22

24

25

114

32

30

32

20

Capital intensity

3.4%

4.2%

2.9%

2.9%

3.4%

3.7%

3.8%

4.1%

4.0%

2.7%

Total

3,988

1,153

1,013

972

850

3,971

974

1,010

1,056

931

Capital intensity

16.6%

18.3%

16.9%

16.4%

14.8%

16.9%

15.7%

17.2%

18.3%

16.7%

BCE Supplementary Financial Information - Fourth Quarter 2019 Page 5

Bell Wireless (1) (2) (3)

Q4

Q4

TOTAL

TOTAL

(In millions of Canadian dollars, except where otherwise indicated) (unaudited)

2019

2018

% change

2019

2018

% change

Bell Wireless

Operating revenues

1,607

6,427

External service revenues

1.6%

6,269

2.5%

1,581

Inter-segment service revenues

12

12

-

49

48

2.1%

Total operating service revenues

1,619

1,593

1.6%

6,476

6,317

2.5%

External product revenues

871

814

7.0%

2,660

2,497

6.5%

Inter-segment product revenues

3

-

n.m.

6

4

50.0%

Total operating product revenues

874

814

7.4%

2,666

2,501

6.6%

Total external revenues

2,478

2,395

3.5%

9,087

8,766

3.7%

Total operating revenues

2,493

2,407

3.6%

9,142

8,818

3.7%

Operating costs

(1,549)

(1,528)

(1.4%)

(5,300)

(5,297)

(0.1%)

Adjusted EBITDA

944

879

7.4%

3,842

3,521

9.1%

Adjusted EBITDA margin (Total operating revenues)

37.9%

36.5%

1.4 pts

42.0%

39.9%

2.1 pts

Capital expenditures

211

133

(58.6%)

697

664

(5.0%)

Capital intensity

8.5%

5.5%

(3.0) pts

7.6%

7.5%

(0.1) pts

Wireless subscriber gross activations (5)

596,019

546,203

9.1%

2,117,517

1,954,792

8.3%

Postpaid

455,111

447,590

1.7%

1,568,729

1,615,764

(2.9%)

Prepaid

140,908

98,613

42.9%

548,788

339,028

61.9%

Wireless subscriber net activations

123,582

143,114

(13.6%)

515,409

479,811

7.4%

Postpaid

121,599

121,780

(0.1%)

401,955

447,682

(10.2%)

Prepaid

1,983

21,334

(90.7%)

113,454

32,129

253.1%

Wireless subscribers end of period (EOP)(A)(B)

9,957,962

9,610,482

3.6%

9,957,962

9,610,482

3.6%

Postpaid(A)(B)

9,159,940

8,830,216

3.7%

9,159,940

8,830,216

3.7%

Prepaid(A)

798,022

780,266

2.3%

798,022

780,266

2.3%

Blended average billing per user (ABPU)($/month) (5)(C)

67.20

67.46

(0.4%)

68.32

67.76

0.8%

Churn (%) (average per month) (5)

1.60%

1.41%

(0.19) pts

1.39%

1.32%

(0.07) pts

Postpaid

1.28%

1.26%

(0.02) pts

1.13%

1.16%

0.03 pts

Prepaid

5.14%

3.18%

(1.96) pts

4.44%

3.17%

(1.27) pts

n.m. : not meaningful

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

    • 65,798 subscribers (19,195 postpaid and 46,603 prepaid), due to the completion of the shutdown of the code division multiple access (CDMA) network on April 30, 2019
    • 49,095 prepaid subscribers as a result of a change to our deactivation policy, mainly from 120 days for Bell/Virgin Mobile Canada (Virgin Mobile) and 150 days for Lucky Mobile to 90 days
    • 43,670 postpaid subscribers relating to Internet of Things (IoT) due to the further refinement of our subscriber definition as a result of technology evolution
    • 9,366 postpaid fixed wireless Internet subscribers which were transferred to our retailhigh-speed Internet subscriber base
  2. At the beginning of Q4 2018, we adjusted our postpaid wireless subscriber base to remove 20,000 subscribers that we divested to Xplornet Communications Inc. (Xplornet) as a result of BCE's acquisition of Manitoba Telecom Services Inc. (MTS) in 2017.
  3. Our Q1 2018 blended ABPU was adjusted to exclude the unfavourable retroactive impact of the CanadianRadio-television and Telecommunications Commission (CRTC) decision on wireless domestic wholesale roaming rates of $14 million.

BCE Supplementary Financial Information - Fourth Quarter 2019 Page 6

Bell Wireless - Historical Trend

(In millions of Canadian dollars, except where otherwise indicated)

TOTAL

TOTAL

(unaudited)

2019

Q4 19

Q3 19

Q2 19

Q1 19

2018

Q4 18

Q3 18

Q2 18

Q1 18

Bell Wireless

Operating revenues

6,427

1,607

1,660

1,606

1,554

6,269

1,581

1,620

1,566

1,502

External service revenues

Inter-segment service revenues

49

12

13

12

12

48

12

12

12

12

Total operating service revenues

6,476

1,619

1,673

1,618

1,566

6,317

1,593

1,632

1,578

1,514

External product revenues

2,660

871

675

569

545

2,497

814

636

541

506

Inter-segment product revenues

6

3

-

2

1

4

-

1

2

1

Total operating product revenues

2,666

874

675

571

546

2,501

814

637

543

507

Total external revenues

9,087

2,478

2,335

2,175

2,099

8,766

2,395

2,256

2,107

2,008

Total operating revenues

9,142

2,493

2,348

2,189

2,112

8,818

2,407

2,269

2,121

2,021

Operating costs

(5,300)

(1,549)

(1,335)

(1,209)

(1,207)

(5,297)

(1,528)

(1,330)

(1,229)

(1,210)

Adjusted EBITDA

3,842

944

1,013

980

905

3,521

879

939

892

811

Adjusted EBITDA margin (Total operating revenues)

42.0%

37.9%

43.1%

44.8%

42.9%

39.9%

36.5%

41.4%

42.1%

40.1%

Capital expenditures

697

211

167

168

151

664

133

183

181

167

Capital intensity

7.6%

8.5%

7.1%

7.7%

7.1%

7.5%

5.5%

8.1%

8.5%

8.3%

Wireless subscriber gross activations

2,117,517

596,019

593,547

517,650

410,301

1,954,792

546,203

535,647

468,152

404,790

Postpaid

1,568,729

455,111

417,966

375,094

320,558

1,615,764

447,590

426,719

394,136

347,319

Prepaid

548,788

140,908

175,581

142,556

89,743

339,028

98,613

108,928

74,016

57,471

Wireless subscriber net activations (losses)

515,409

123,582

204,067

149,478

38,282

479,811

143,114

177,834

114,486

44,377

Postpaid

401,955

121,599

127,172

102,980

50,204

447,682

121,780

135,323

122,092

68,487

Prepaid

113,454

1,983

76,895

46,498

(11,922)

32,129

21,334

42,511

(7,606)

(24,110)

Wireless subscribers EOP(A)(B)

9,957,962

9,957,962

9,834,380

9,630,313

9,480,835

9,610,482

9,610,482

9,487,368

9,309,534

9,195,048

Postpaid(A)(B)

9,159,940

9,159,940

9,038,341

8,911,169

8,808,189

8,830,216

8,830,216

8,728,436

8,593,113

8,471,021

Prepaid(A)

798,022

798,022

796,039

719,144

672,646

780,266

780,266

758,932

716,421

724,027

Blended ABPU ($/month)(C)

68.32

67.20

69.93

68.79

67.35

67.76

67.46

69.28

67.71

66.56

Churn (%)(average per month)

1.39%

1.60%

1.34%

1.29%

1.31%

1.32%

1.41%

1.27%

1.28%

1.31%

Postpaid

1.13%

1.28%

1.12%

1.06%

1.07%

1.16%

1.26%

1.14%

1.10%

1.13%

Prepaid

4.44%

5.14%

3.89%

4.20%

4.49%

3.17%

3.18%

2.76%

3.34%

3.40%

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

  • 65,798 subscribers (19,195 postpaid and 46,603 prepaid), due to the completion of the shutdown of the CDMA network on April 30, 2019
  • 49,095 prepaid subscribers as a result of a change to our deactivation policy, mainly from 120 days for Bell/Virgin Mobile and 150 days for Lucky Mobile to 90 days
  • 43,670 postpaid subscribers relating to IoT due to the further refinement of our subscriber definition as a result of technology evolution
  • 9,366 postpaid fixed wireless Internet subscribers which were transferred to our retailhigh-speed Internet subscriber base

(B)At the beginning of Q4 2018, we adjusted our postpaid wireless subscriber base to remove 20,000 subscribers that we divested to Xplornet as a result of BCE's acquisition of MTS in 2017.

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

BCE Supplementary Financial Information - Fourth Quarter 2019 Page 7

Bell Wireline (1) (2) (3)

Q4

Q4

TOTAL

TOTAL

(In millions of Canadian dollars, except where otherwise indicated) (unaudited)

2019

2018

% change

2019

2018

% change

Bell Wireline

Operating revenues

1,941

7,684

Data

1,910

1.6%

7,466

2.9%

Voice

879

933

(5.8%)

3,564

3,782

(5.8%)

Other services

69

60

15.0%

251

247

1.6%

Total external service revenues

2,889

2,903

(0.5%)

11,499

-

11,495

Inter-segment service revenues

80

64

25.0%

289

242

19.4%

Total operating service revenues

2,969

2,967

0.1%

11,788

11,737

0.4%

Data

152

153

(0.7%)

519

466

11.4%

Equipment and other

17

17

-

48

64

(25.0%)

Total external product revenues

169

170

(0.6%)

567

7.0%

530

Inter-segment product revenues

-

-

-

1

-

n.m.

Total operating product revenues

169

170

(0.6%)

568

530

7.2%

Total external revenues

3,058

3,073

(0.5%)

12,066

12,025

0.3%

Total operating revenues

3,138

3,137

-

12,356

12,267

0.7%

Operating costs

(1,779)

(1,798)

1.1%

(6,942)

(6,946)

0.1%

Adjusted EBITDA

1,359

1,339

1.5%

5,414

1.7%

5,321

Adjusted EBITDA margin

43.3%

42.7%

0.6 pts

43.8%

43.4%

0.4 pts

905

3,183

3,193

0.3%

Capital expenditures

809

(11.9%)

Capital intensity

28.8%

25.8%

(3.0) pts

25.8%

26.0%

0.2 pts

Retail high-speed Internet subscribers (5)

Retail net activations (A)

35,639

32,518

9.6%

135,861

116,599

16.5%

Retail subscribers EOP (A) (B)

3,555,601

3,410,374

4.3%

3,555,601

3,410,374

4.3%

Retail TV subscribers (5)

Retail net subscriber activations (losses) (A)

421

13,231

(96.8%)

6,053

21,559

(71.9%)

Internet protocol television (IPTV)

22,039

36,473

(39.6%)

91,476

110,790

(17.4%)

Satellite

(21,618)

(23,242)

7.0%

(85,423)

(89,231)

4.3%

Total retail subscribers EOP (A)

2,772,464

2,766,411

0.2%

2,772,464

2,766,411

0.2%

IPTV

1,767,182

1,675,706

5.5%

1,767,182

1,675,706

5.5%

Satellite

1,005,282

1,090,705

(7.8%)

1,005,282

1,090,705

(7.8%)

Retail network access services (NAS) (5)

Retail residential NAS lines net losses (A)

(58,110)

(60,011)

3.2%

(263,325)

(258,881)

(1.7%)

Retail residential NAS lines (A)

2,697,483

2,960,808

(8.9%)

2,697,483

2,960,808

(8.9%)

n.m. : not meaningful

  1. As of January 1, 2019, we are no longer reporting wholesale subscribers in our Internet, TV, and residential NAS subscriber bases reflecting our focus on the retail market. Consequently, we restated previously reported 2018 subscribers for comparability.
  2. At the beginning of Q1 2019, our retailhigh-speed Internet subscriber base was increased by 9,366 subscribers due to the transfer of fixed wireless Internet subscribers from our wireless segment.

BCE Supplementary Financial Information - Fourth Quarter 2019 Page 8

Bell Wireline - Historical Trend

(In millions of Canadian dollars, except where otherwise indicated)

TOTAL

TOTAL

(unaudited)

2019

Q4 19

Q3 19

Q2 19

Q1 19

2018

Q4 18

Q3 18

Q2 18

Q1 18

Bell Wireline

Operating revenues

7,684

1,941

Data

1,929

1,929

1,885

7,466

1,910

1,867

1,869

1,820

3,564

879

881

897

907

Voice

3,782

933

948

953

948

Other services

251

69

61

62

59

247

60

60

64

63

Total external service revenues

11,499

2,889

2,871

2,888

2,851

11,495

2,903

2,875

2,886

2,831

Inter-segment service revenues

289

80

70

70

69

242

64

61

59

58

Total operating service revenues

11,788

2,969

2,941

2,958

2,920

11,737

2,967

2,936

2,945

2,889

Data

519

152

114

120

133

466

153

111

98

104

Equipment and other

48

17

10

10

11

64

17

13

18

16

Total external product revenues

567

169

124

130

144

530

170

124

116

120

Inter-segment product revenues

1

-

1

-

-

-

-

-

-

-

Total operating product revenues

568

169

125

130

144

530

170

124

116

120

Total external revenues

12,066

3,058

2,995

3,018

2,995

12,025

3,073

2,999

3,002

2,951

Total operating revenues

12,356

3,138

3,066

3,088

3,064

12,267

3,137

3,060

3,061

3,009

Operating costs

(6,942)

(1,779)

(1,711)

(1,727)

(1,725)

(6,946)

(1,798)

(1,724)

(1,728)

(1,696)

Adjusted EBITDA

5,414

1,359

1,355

1,361

1,339

5,321

1,339

1,336

1,333

1,313

Adjusted EBITDA margin

43.8%

43.3%

44.2%

44.1%

43.7%

43.4%

42.7%

43.7%

43.5%

43.6%

Capital expenditures

3,183

905

824

780

674

3,193

809

797

843

744

Capital intensity

25.8%

28.8%

26.9%

25.3%

22.0%

26.0%

25.8%

26.0%

27.5%

24.7%

Retail high-speed Internet subscribers

Retail net activations (A)

135,861

35,639

58,137

19,414

22,671

116,599

32,518

53,122

12,803

18,156

Retail subscribers EOP (A) (B)

3,555,601

3,555,601

3,519,962

3,461,825

3,442,411

3,410,374

3,410,374

3,377,856

3,324,734

3,311,931

Retail TV subscribers

Retail net subscriber activations (losses) (A)

6,053

421

4,842

2,350

(1,560)

21,559

13,231

13,230

5,452

(10,354)

IPTV

91,476

22,039

31,746

16,775

20,916

110,790

36,473

40,091

20,653

13,573

Satellite

(85,423)

(21,618)

(26,904)

(14,425)

(22,476)

(89,231)

(23,242)

(26,861)

(15,201)

(23,927)

Total retail subscribers EOP (A)

2,772,464

2,772,464

2,772,043

2,767,201

2,764,851

2,766,411

2,766,411

2,753,180

2,739,950

2,734,498

IPTV

1,767,182

1,767,182

1,745,143

1,713,397

1,696,622

1,675,706

1,675,706

1,639,233

1,599,142

1,578,489

Satellite

1,005,282

1,005,282

1,026,900

1,053,804

1,068,229

1,090,705

1,090,705

1,113,947

1,140,808

1,156,009

Retail network access services (NAS)

Retail residential NAS lines net losses (A)

(263,325)

(58,110)

(65,656)

(72,780)

(66,779)

(258,881)

(60,011)

(73,241)

(69,558)

(56,071)

Retail residential NAS lines (A)

2,697,483

2,697,483

2,755,593

2,821,249

2,894,029

2,960,808

2,960,808

3,020,819

3,094,060

3,163,618

(A)As of January 1, 2019, we are no longer reporting wholesale subscribers in our Internet, TV and residential NAS subscriber bases reflecting our focus on the retail market. Consequently, we restated previously reported 2018 subscribers for comparability.

  1. At the beginning of Q1 2019, our retailhigh-speed Internet subscriber base was increased by 9,366 subscribers due to the transfer of fixed wireless Internet subscribers from our wireless segment.

BCE Supplementary Financial Information - Fourth Quarter 2019 Page 9

BCE (2)

Net debt and other information

BCE - Net debt and preferred shares

(In millions of Canadian dollars, except where otherwise indicated) (unaudited)

December 31

September 30

June 30

March 31

December 31

2019

2019

2019

2019

2018

Debt due within one year

3,881

4,728

5,676

5,485

4,645

Long-term debt

22,415

22,445

21,949

22,016

19,760

50% of preferred shares

2,002

2,002

2,002

2,002

2,002

Cash and cash equivalents

(145)

(966)

(1,094)

(668)

(425)

Net debt (4)

28,153

28,209

28,533

28,835

25,982

Net debt leverage ratio (4)(A)

2.79

2.82

2.90

2.98

2.72

Adjusted EBITDA /net interest expense ratio (4)

8.54

8.64

8.71

8.80

9.00

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

Cash flow information

(In millions of Canadian dollars, except where otherwise indicated) (unaudited)

Q4

Q4

TOTAL

TOTAL

2019

2018

$ change

% change

2019

2018

$ change

% change

Free cash flow (FCF) (4)

2,091

7,958

Cash flows from operating activities

1,788

303

16.9%

7,384

574

7.8%

Capital expenditures

(1,153)

(974)

(179)

(18.4%)

(3,988)

(3,971)

(17)

(0.4%)

Cash dividends paid on preferred shares

(37)

(46)

9

19.6%

(147)

(149)

2

1.3%

Cash dividends paid by subsidiaries to non-controlling interest

(14)

-

(14)

n.m.

(65)

(16)

(49)

n.m.

Acquisition and other costs paid

7

14

(7)

(50.0%)

60

79

(19)

(24.1%)

Voluntary defined benefit pension plan contribution

-

240

(240)

(100.0%)

-

240

(240)

(100.0%)

FCF

894

1,022

(128)

(12.5%)

3,818

3,567

251

7.0%

Cash flow information - Historical trend

(In millions of Canadian dollars, except where otherwise indicated) (unaudited)

TOTAL

Q4

Q3

Q2

Q1

TOTAL

Q4

Q3

Q2

Q1

FCF

2019

2019

2019

2019

2019

2018

2018

2018

2018

2018

7,958

2,091

Cash flows from operating activities

2,258

2,093

1,516

7,384

1,788

2,043

2,057

1,496

Capital expenditures

(3,988)

(1,153)

(1,013)

(972)

(850)

(3,971)

(974)

(1,010)

(1,056)

(931)

Cash dividends paid on preferred shares

(147)

(37)

(47)

(37)

(26)

(149)

(46)

(35)

(35)

(33)

Cash dividends paid by subsidiaries to non-controlling interest

(65)

(14)

(12)

(12)

(27)

(16)

-

(3)

-

(13)

Acquisition and other costs paid

60

7

3

21

29

79

14

19

28

18

Voluntary defined benefit pension plan contribution

-

-

-

-

-

240

240

-

-

-

FCF

3,818

894

1,189

1,093

642

3,567

1,022

1,014

994

537

n.m. : not meaningful

BCE SupplementaryFinancial Information - Fourth Quarter 2019 Page 10

BCE (2)

Consolidated Statements of Financial Position

December 31

September 30

June 30

March 31

December 31

(In millions of Canadian dollars, except where otherwise indicated) (unaudited)

2019

2019

2019

2019

2018

ASSETS

Current assets

141

Cash

919

719

546

425

Cash equivalents

4

47

375

122

-

Trade and other receivables

3 038

2 866

2 978

2 937

3 006

Inventory

427

483

487

472

432

Contract assets

1 111

1 049

1 005

978

987

Contract costs

415

395

387

383

370

Prepaid expenses

194

270

349

350

244

Other current assets

190

226

189

246

329

Total current assets

5 520

6 255

6 489

6 034

5 793

Non-current assets

533

Contract assets

495

476

477

506

Contract costs

368

348

350

331

337

Property, plant and equipment

27 636

27 379

27 415

27 276

24 844

Intangible assets

13 352

13 463

13 232

13 269

13 205

Deferred tax assets

98

140

137

129

112

Investments in associates and joint ventures

698

706

740

803

798

Other non-current assets

1 442

1 171

700

864

847

Goodwill

10 667

10 669

10 674

10 657

10 658

Total non-current assets

54 794

54 371

53 724

53 806

51 307

Total assets

60 314

60 626

60 213

59 840

57 100

LIABILITIES

Current liabilities

3 954

Trade payables and other liabilities

3 650

3 720

3 610

3 941

Contract liabilities

683

681

708

733

703

Interest payable

227

207

215

203

196

Dividends payable

729

728

736

735

691

Current tax liabilities

303

383

287

218

253

Debt due within one year

3 881

4 728

5 676

5 485

4 645

Total current liabilities

9 777

10 377

11 342

10 984

10 429

Non-current liabilities

207

Contract liabilities

206

219

204

196

Long-term debt

22 415

22 445

21 949

22 016

19 760

Deferred tax liabilities

3 606

3 425

3 146

3 159

3 163

Post-employment benefit obligations

1 907

2 038

2 158

1 998

1 866

Other non-current liabilities

871

872

938

941

997

Total non-current liabilities

29 006

28 986

28 410

28 318

25 982

Total liabilities

38 783

39 363

39 752

39 302

36 411

EQUITY

Equity attributable to BCE shareholders

4 004

Preferred shares

4 004

4 004

4 004

4 004

Common shares

20 363

20 350

20 144

20 067

20 036

Contributed surplus

1 178

1 167

1 165

1 153

1 170

Accumulated other comprehensive income

161

141

14

20

90

Deficit

(4 509)

(4 735)

(5 195)

(5 015)

(4 937)

Total equity attributable to BCE shareholders

21 197

20 927

20 132

20 229

20 363

Non-controlling interest

334

336

329

309

326

Total equity

21 531

21 263

20 461

20 538

20 689

Total liabilities and equity

60 314

60 626

60 213

59 840

57 100

Number of common shares outstanding (millions)

903,9

903,7

900,1

898,8

898,2

BCE Supplementary Financial Information - Fourth Quarter 2019 Page 11

BCE (2)

Consolidated Cash Flow Data

Q4

Q4

TOTAL

TOTAL

(In millions of Canadian dollars, except where otherwise indicated) (unaudited)

2019

2018

$ change

2019

2018

$ change

Net earnings

723

642

81

3,253

2,973

280

Adjustments to reconcile net earnings to cash flows from operating activities

28

114

Severance, acquisition and other costs

58

(30)

136

(22)

Depreciation and amortization

1,093

1,015

78

4,398

4,014

384

Post-employment benefit plans cost

76

83

(7)

310

335

(25)

Net interest expense

282

255

27

1,108

987

121

Losses on investments

(17)

34

(51)

(13)

34

(47)

Income taxes

243

244

(1)

1,133

995

138

Contributions to post-employment benefit plans

(77)

(309)

232

(290)

(539)

249

Payments under other post-employment benefit plans

(18)

(17)

(1)

(72)

(75)

3

Severance and other costs paid

(23)

(43)

20

(168)

(138)

(30)

Interest paid

(264)

(295)

31

(1,087)

(990)

(97)

Income taxes paid (net of refunds)

(221)

(92)

(129)

(725)

(650)

(75)

Acquisition and other costs paid

(7)

(14)

7

(60)

(79)

19

Net change in operating assets and liabilities

273

227

46

57

381

(324)

Cash flows from operating activities

2,091

1,788

303

7,958

7,384

574

Capital expenditures

(1,153)

(974)

(179)

(3,988)

(3,971)

(17)

Cash dividends paid on preferred shares

(37)

(46)

9

(147)

(149)

2

Cash dividends paid by subsidiaries to non-controlling interest

(14)

-

(14)

(65)

(16)

(49)

Acquisition and other costs paid

7

14

(7)

60

79

(19)

Voluntary defined benefit pension plan contribution

-

240

(240)

-

240

(240)

Free cash flow

894

1,022

(128)

3,818

3,567

251

Business acquisitions

-

-

-

(51)

(395)

344

Acquisition and other costs paid

(7)

(14)

7

(60)

(79)

19

Voluntary defined benefit pension plan contribution

-

(240)

240

-

(240)

240

Acquisition of spectrum licences

-

(1)

1

-

(56)

56

Disposition of intangibles and other assets

-

-

-

-

68

(68)

Other investing activities

(9)

32

(41)

3

(32)

35

Decrease in notes payable

(851)

(133)

(718)

(1,073)

(123)

(950)

Increase (decrease) in securitized trade receivables

100

-

100

131

(2)

133

Issue of long-term debt

-

-

-

1,954

2,996

(1,042)

Repayment of long-term debt

(199)

(338)

139

(2,228)

(2,713)

485

Issue of common shares

15

8

7

240

11

229

Repurchase of common shares

-

-

-

-

(175)

175

Purchase of shares for settlement of share-based payments

(42)

(46)

4

(142)

(222)

80

Cash dividends paid on common shares

(716)

(677)

(39)

(2,819)

(2,679)

(140)

Return of capital to non-controlling interest

-

-

-

-

(51)

51

Other financing activities

(6)

(14)

8

(53)

(75)

22

(1,715)

(1,423)

(292)

(4,098)

(3,767)

(331)

Net decrease in cash and cash equivalents

(821)

(401)

(420)

(280)

(200)

(80)

Cash and cash equivalents at beginning of period

966

826

140

425

625

(200)

Cash and cash equivalents at end of period

145

425

(280)

145

425

(280)

BCE Supplementary Financial Information - Fourth Quarter 2019 Page 12

BCE

Consolidated Cash Flow Data - Historical Trend

TOTAL

TOTAL

(In millions of Canadian dollars, except where otherwise indicated) (unaudited)

2019

Q4 19

Q3 19

Q2 19

Q1 19

2018

Q4 18

Q3 18

Q2 18

Q1 18

Net earnings

3,253

723

922

817

791

2,973

642

867

755

709

Adjustments to reconcile net earnings to cash flows from operating activities

114

28

Severance, acquisition and other costs

23

39

24

136

58

54

24

-

Depreciation and amortization

4,398

1,093

1,091

1,111

1,103

4,014

1,015

999

1,008

992

Post-employment benefit plans cost

310

76

76

73

85

335

83

82

80

90

Net interest expense

1,108

282

275

273

278

987

255

251

243

238

Losses on investments

(13)

(17)

-

-

4

34

34

-

-

-

Income taxes

1,133

243

321

276

293

995

244

224

292

235

Contributions to post-employment benefit plans

(290)

(77)

(62)

(70)

(81)

(539)

(309)

(69)

(74)

(87)

Payments under other post-employment benefit plans

(72)

(18)

(17)

(19)

(18)

(75)

(17)

(20)

(19)

(19)

Severance and other costs paid

(168)

(23)

(46)

(33)

(66)

(138)

(43)

(27)

(33)

(35)

Interest paid

(1,087)

(264)

(286)

(270)

(267)

(990)

(295)

(207)

(252)

(236)

Income taxes paid (net of refunds)

(725)

(221)

(88)

(127)

(289)

(650)

(92)

(161)

(113)

(284)

Acquisition and other costs paid

(60)

(7)

(3)

(21)

(29)

(79)

(14)

(19)

(28)

(18)

Net change in operating assets and liabilities

57

273

52

44

(312)

381

227

69

174

(89)

Cash flows from operating activities

7,958

2,091

2,258

2,093

1,516

7,384

1,788

2,043

2,057

1,496

Capital expenditures

(3,988)

(1,153)

(1,013)

(972)

(850)

(3,971)

(974)

(1,010)

(1,056)

(931)

Cash dividends paid on preferred shares

(147)

(37)

(47)

(37)

(26)

(149)

(46)

(35)

(35)

(33)

Cash dividends paid by subsidiaries to non-controlling interest

(65)

(14)

(12)

(12)

(27)

(16)

-

(3)

-

(13)

Acquisition and other costs paid

60

7

3

21

29

79

14

19

28

18

Voluntary defined benefit pension plan contribution

-

-

-

-

-

240

240

-

-

-

Free cash flow

3,818

894

1,189

1,093

642

3,567

1,022

1,014

994

537

Business acquisitions

(51)

-

(1)

(50)

-

(395)

-

(151)

(21)

(223)

Acquisition and other costs paid

(60)

(7)

(3)

(21)

(29)

(79)

(14)

(19)

(28)

(18)

Voluntary defined benefit pension plan contribution

-

-

-

-

-

(240)

(240)

-

-

-

Acquisition of spectrum licences

-

-

-

-

-

(56)

(1)

(19)

-

(36)

Disposition of intangibles and other assets

-

-

-

-

-

68

-

-

-

68

Other investing activities

3

(9)

4

32

(24)

(32)

32

(9)

(20)

(35)

(Decrease) increase in notes payable

(1,073)

(851)

(1,066)

277

567

(123)

(133)

(30)

97

(57)

Increase (decrease) in securitized trade receivables

131

100

-

-

31

(2)

-

-

(2)

-

Issue of long-term debt

1,954

-

549

1,405

-

2,996

-

1,530

-

1,466

Repayment of long-term debt

(2,228)

(199)

(226)

(1,599)

(204)

(2,713)

(338)

(1,134)

(1,068)

(173)

Issue of common shares

240

15

161

44

20

11

8

1

1

1

Repurchase of common shares

-

-

-

-

-

(175)

-

-

-

(175)

Purchase of shares for settlement of share-based payments

(142)

(42)

(14)

(10)

(76)

(222)

(46)

(39)

(49)

(88)

Cash dividends paid on common shares

(2,819)

(716)

(713)

(712)

(678)

(2,679)

(677)

(678)

(678)

(646)

Return of capital to non-controlling interest

-

-

-

-

-

(51)

-

(10)

(12)

(29)

Other financing activities

(53)

(6)

(8)

(33)

(6)

(75)

(14)

(20)

(23)

(18)

(4,098)

(1,715)

(1,317)

(667)

(399)

(3,767)

(1,423)

(578)

(1,803)

37

Net (decrease) increase in cash and cash equivalents

(280)

(821)

(128)

426

243

(200)

(401)

436

(809)

574

Cash and cash equivalents at beginning of period

425

966

1,094

668

425

625

826

390

1,199

625

Cash and cash equivalents at end of period

145

145

966

1,094

668

425

425

826

390

1,199

BCE Supplementary Financial Information - Fourth Quarter 2019 Page 13

Accompanying Notes

  1. Our results are reported in three segments: Bell Wireless, Bell Wireline and Bell Media. Our segments reflect how we manage our business and how we classify our operations for planning and measuring performance.
    Throughout this report, we, us, our, BCEand the companymean, as the context may require, either BCE Inc. or, collectively, BCE Inc., Bell Canada, their subsidiaries, joint arrangements and associates. Bellmeans, as the context may require, either Bell Canada or, collectively, Bell Canada, its subsidiaries, joint arrangements and associates.
  2. As required, we adopted International Financial Reporting Standard (IFRS) 16 - Leases effective January 1, 2019. We adopted IFRS 16 using a modified retrospective approach whereby the financial statements of prior periods presented were not restated and continue to be reported under International Accounting Standard (IAS) 17 - Leases, as permitted by the specific transition provisions of IFRS 16. The cumulative effect of the initial adoption of IFRS 16 was reflected as an adjustment to the deficit at January 1, 2019. For further details, see Note 3, Note 14 and Note 16,Adoption of IFRS 16,respectively, of the Q1 2019, Q2 2019 and Q3 2019 interim financial statements.
    Under IFRS 16, most leases are recognized on the statement of financial position as right-of-use assets within property, plant and equipment, with a corresponding lease liability within debt. Under IFRS 16, expenses related to these leases are recorded in depreciation and interest expense, whereas under IAS 17, operating lease expenses were recorded in operating costs. Under IFRS 16, repayments of principal for these leases are recorded in repayment of long-term debt within cash flows from financing activities and the interest component is recorded in interest paid within cash flows from operating activities. Previously, under IAS 17, operating lease payments were recorded within cash flows from operating activities.
  3. To align with changes in how we manage our business and assess performance, the operating results of The Source (Bell) Electronics Inc. (The Source) are now entirely included within our Wireless segment effective January 1, 2019, with prior periods restated for comparative purposes. Previously, The Source's results were included within our Wireless and Wireline segments.
  4. Non-GAAPFinancial Measures
    Adjusted EBITDA and adjusted EBITDA margin
    The terms adjusted EBITDA and adjusted EBITDA margin do not have any standardized meaning under IFRS. Therefore, they are unlikely to be comparable to similar measures presented by other issuers.
    We define adjusted EBITDA as operating revenues less operating costs (including post-employment benefit plans service cost) as shown in BCE's consolidated income statements. Adjusted EBITDA for BCE's segments is the same as segment profit as reported in BCE's consolidated financial statements. We define adjusted EBITDA margin as adjusted EBITDA divided by operating revenues.
    We use adjusted EBITDA and adjusted EBITDA margin to evaluate the performance of our businesses as they reflect their ongoing profitability. We believe that certain investors and analysts use adjusted EBITDA to measure a company's ability to service debt and to meet other payment obligations or as a common measurement to value companies in the telecommunications industry. We believe that certain investors and analysts also use adjusted EBITDA and adjusted EBITDA margin to evaluate the performance of our businesses. Adjusted EBITDA also is one component in the determination of short-term incentive compensation for all management employees.

BCE Supplementary Financial Information - Fourth Quarter 2019 Page 14

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

Adjusted net earnings and adjusted earnings per share (EPS)

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

We define adjusted net earnings as net earnings attributable to common shareholders before severance, acquisition and other costs, net mark-to-market losses (gains) on derivatives used to economically hedge equity settled share-based compensation plans, net losses (gains) on investments, early debt redemption costs and impairment charges, net of tax and non-controlling interest (NCI). We define adjusted EPS as adjusted net earnings per BCE common share.

We use adjusted net earnings and adjusted EPS, and we believe that certain investors and analysts use these measures, among other ones, to assess the performance of our businesses without the effects of severance, acquisition and other costs, net mark-to-market losses (gains) on derivatives used to economically hedge equity settled share-based compensation plans, net losses (gains) on investments, early debt redemption costs and impairment charges, net of tax and NCI. We exclude these items because they affect the comparability of our financial results and could potentially distort the analysis of trends in business performance. Excluding these items does not imply they are non-recurring.

The most comparable IFRS financial measures are net earnings attributable to common shareholders and EPS, as reconciled in this document.

Free cash flow

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

We define free cash flow as cash flows from operating activities, excluding acquisition and other costs paid (which include significant litigation costs) and voluntary pension funding, less capital expenditures, preferred share dividends and dividends paid by subsidiaries to NCI. We exclude acquisition and other costs paid and voluntary pension funding because they affect the comparability of our financial results and could potentially distort the analysis of trends in business performance. Excluding these items does not imply they are non-recurring.

We consider free cash flow to be an important indicator of the financial strength and performance of our businesses because it shows how much cash is available to pay dividends on common shares, repay debt and reinvest in our company.

We believe that certain investors and analysts use free cash flow to value a business and its underlying assets and to evaluate the financial strength and performance of our businesses.

The most comparable IFRS financial measure is cash flows from operating activities, as reconciled in this document.

Net debt

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

We define net debt as debt due within one year plus long-term debt and 50% of preferred shares, less cash and cash equivalents, as shown in BCE's consolidated statements of financial position. We include 50% of outstanding preferred shares in our net debt as it is consistent with the treatment by certain credit rating agencies.

BCE Supplementary Financial Information - Fourth Quarter 2019 Page 15

We consider net debt to be an important indicator of the company's financial leverage because it represents the amount of debt that is not covered by available cash and cash equivalents. We believe that certain investors and analysts use net debt to determine a company's financial leverage.

Net debt has no directly comparable IFRS financial measure, but rather is calculated using several asset and liability categories from the statements of financial position, as shown in this document.

Net debt leverage ratio

The net debt leverage ratio does not have any standardized meaning under IFRS. Therefore, it is unlikely to be comparable to similar measures presented by other issuers. We use, and believe that certain investors and analysts use, the net debt leverage ratio as a measure of financial leverage.

The net debt leverage ratio represents net debt divided by adjusted EBITDA. For the purposes of calculating our net debt leverage ratio, adjusted EBITDA is twelve-month trailing adjusted EBITDA.

Adjusted EBITDA to net interest expense ratio

The ratio of adjusted EBITDA to net interest expense does not have any standardized meaning under IFRS. Therefore, it is unlikely to be comparable to similar measures presented by other issuers. We use, and believe that certain investors and analysts use, the adjusted EBITDA to net interest expense ratio as a measure of financial health of the company.

The adjusted EBITDA to net interest expense ratio represents adjusted EBITDA divided by net interest expense. For the purposes of calculating our adjusted EBITDA to net interest expense ratio, adjusted EBITDA is twelve-month trailing adjusted EBITDA. Net interest expense is twelve-month trailing net interest expense as shown in our statements of cash flows, plus 50% of declared preferred share dividends as shown in our income statements.

  1. Key performance indicators (KPIs)
    In addition to the non-GAAP financial measures described previously, we use a number of KPIs to measure the success of our strategic imperatives. These KPIs are not accounting measures and may not be comparable to similar measures presented by other issuers.
    Average billing per user (ABPU) or subscriberapproximates the average amount billed to customers on a monthly basis, which is used to track our recurring billing streams. Wireless blended ABPU is calculated by dividing certain customer billings by the average subscriber base for the specified period and is expressed as a dollar unit per month.
    Capital intensityis capital expenditures divided by operating revenues.
    Churnis the rate at which existing subscribers cancel their services. It is a measure of our ability to retain our customers. Wireless churn is calculated by dividing the number of deactivations during a given period by the average number of subscribers in the base for the specified period and is expressed as a percentage per month.
    Wireless subscriber unitis comprised of an active revenue-generating unit (e.g. mobile device, tablet or wireless Internet products), with a unique identifier (typically International Mobile Equipment Identity (IMEI) number), that has access to our wireless networks. We report wireless subscriber units in two categories: postpaid and prepaid. Prepaid subscriber units are considered active for a period of 90 days (previously 120 to 150 days) following the expiry of the subscriber's prepaid balance.

BCE Supplementary Financial Information - Fourth Quarter 2019 Page 16

Wireline subscriber unitconsists of an active revenue-generating unit with access to our services, including retail Internet, satellite TV, IPTV, and/or NAS. A subscriber is included in our subscriber base when the service has been installed and is operational at the customer premise and a billing relationship has been established.

  • Retail Internet, IPTV and satellite TV subscribers have access tostand-alone services, and are primarily represented by a dwelling unit
  • Retail NAS subscribers are based on a line count and are represented by a unique telephone number

BCE Supplementary Financial Information - Fourth Quarter 2019 Page 17

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BCE Inc. published this content on 06 February 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 06 February 2020 13:17:02 UTC