Cover Page
Q2
BCE Investor Relations
Thane Fotopoulos
514-870-4619
thane.fotopoulos@bell.ca
Supplementary Financial Information Fourth Quarter 2008
Supplementary Financial Information Second Quarter 2020
thane.fotopoulos@bell.ca
BCE Inc. IS Summary p2
BCE (1) (2) (3)
Consolidated Operational Data
Q2 Q2 YTD YTD
(In millions of Canadian dollars, except share amounts) (unaudited) 2020 2019 $ change % change 2020 2019 $ change % change
Operating revenues
Service 4,800 5,190 (390) (7.5%) 9,818 10,190 (372) (3.7%)
Product 554 699 (145) (20.7%) 1,176 1,388 (212) (15.3%)
Total operating revenues 5,354 5,889 (535) (9.1%) 10,994 11,578 (584) (5.0%)
Operating costs (A) (2,959) (3,259) 300 9.2% (6,106) (6,498) 392 6.0%
Post-employment benefit plans service cost (64) (58) (6) (10.3%) (139) (126) (13) (10.3%)
Adjusted EBITDA (4) 2,331 2,572 (241) (9.4%) 4,749 4,954 (205) (4.1%)
Adjusted EBITDA margin (4) 43.5% 43.7% (0.2) pts 43.2% 42.8% 0.4 pts
Severance, acquisition and other costs (22) (39) 17 43.6% (38) (63) 25 39.7%
Depreciation (869) (879) 10 1.1% (1,727) (1,752) 25 1.4%
Amortization (234) (220) (14) (6.4%) (464) (437) (27) (6.2%)
Finance costs
Interest expense (280) (279) (1) (0.4%) (557) (560) 3 0.5%
Interest on post-employment benefit obligations (11) (15) 4 26.7% (23) (31) 8 25.8%
Impairment of assets (449) (1) (448) n.m. (456) (5) (451) n.m.
Other (expense) income (80) (54) (26) (48.1%) (127) 51 (178) n.m.
Income taxes (96) (275) 179 65.1% (339) (565) 226 40.0%
Net earnings from continuing operations 290 810 (520) (64.2%) 1,018 1,592 (574) (36.1%)
Net earnings from discontinued operations 4 7 (3) (42.9%) 9 16 (7) (43.8%)
Net earnings 294 817 (523) (64.0%) 1,027 1,608 (581) (36.1%)
Net earnings from continuing operations attributable to:
Common shareholders 233 754 (521) (69.1%) 908 1,485 (577) (38.9%)
Preferred shareholders 34 38 (4) (10.5%) 72 76 (4) (5.3%)
Non-controlling interest 23 18 5 27.8% 38 31 7 22.6%
Net earnings from continuing operations 290 810 (520) (64.2%) 1,018 1,592 (574) (36.1%)
Net earnings attributable to:
Common shareholders 237 761 (524) (68.9%) 917 1,501 (584) (38.9%)
Preferred shareholders 34 38 (4) (10.5%) 72 76 (4) (5.3%)
Non-controlling interest 23 18 5 27.8% 38 31 7 22.6%
Net earnings 294 817 (523) (64.0%) 1,027 1,608 (581) (36.1%)
Net earnings per common share - basic and diluted
Continuing operations $ 0.26 $ 0.84 $ (0.58) (69.0%) $ 1.00 $ 1.65 $ (0.65) (39.4%)
Discontinued operations $ - $ 0.01 $ - $ (0.01) (100.0%) $ 0.01 $ 0.01 $ 0.02 $ - 0 $ (0.01) (50.0%)
Net earnings per common share - basic and diluted $ 0.26 $ 0.85 - $ (0.59) (69.4%) $ 1.01 $ 1.67 - $ (0.66) (39.5%)
Dividends per common share $ 0.8325 $ 0.7925 $ 0.04 5.0% $ 1.6650 $ 1.5850 $ 0.08 5.0%
Weighted average number of common shares outstanding - basic (millions) 904.3 899.5 904.2 898.9
Weighted average number of common shares outstanding - diluted (millions) 904.4 900.3 904.4 899.4
Number of common shares outstanding (millions) 904.3 900.1 904.3 900.1
Adjusted net earnings and EPS
Net earnings attributable to common shareholders 237 761 (524) (68.9%) 917 1,501 (584) (38.9%)
Severance, acquisition and other costs 16 28 (12) (42.9%) 28 46 (18) (39.1%)
Net mark-to-market losses (gains) on derivatives used to economically hedge equity settled share-based compensation plans 7 (9) 16 n.m. 27 (82) 109 n.m.
Net (gains) losses on investments (11) 53 (64) n.m. (21) 57 (78) n.m.
Early debt redemption costs - 13 (13) (100.0%) 12 13 (1) (7.7%)
Impairment of assets 328 1 327 n.m. 333 4 329 n.m.
Net earnings from discontinued operations (4) (7) 3 42.9% (9) (16) 7 43.8%
Adjusted net earnings (4) 573 840 (267) (31.8%) 1,287 1,523 (236) (15.5%)
Impact on net earnings per share $ 0.37 $ 0.09 $ 0.28 n.m. $ 0.42 $ 0.04 $ 0.38 n.m.
Adjusted EPS (4) $ 0.63 $ 0.93 $ (0.30) (32.3%) $ 1.42 $ 1.69 $ (0.27) (16.0%)
n.m. : not meaningful
(A) Excludes post-employment benefit plans service cost
&R&17BCE Supplementary Financial Information - Second Quarter 2020 Page 2
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BCE Inc. IS HIST p3
BCE
Consolidated Operational Data - Historical Trend
YTD TOTAL
(In millions of Canadian dollars, except share amounts) (unaudited) 2020 Q2 20 Q1 20 2019 Q4 19 Q3 19 Q2 19 Q1 19
Operating revenues
Service 9,818 4,800 5,018 20,566 5,235 5,141 5,190 5,000
Product 1,176 554 622 3,227 1,040 799 699 689
Total operating revenues 10,994 5,354 5,640 23,793 6,275 5,940 5,889 5,689
Operating costs (A) (6,106) (2,959) (3,147) (13,541) (3,731) (3,312) (3,259) (3,239)
Post-employment benefit plans service cost (139) (64) (75) (246) (60) (60) (58) (68)
Adjusted EBITDA 4,749 2,331 2,418 10,006 2,484 2,568 2,572 2,382
Adjusted EBITDA margin 43.2% 43.5% 42.9% 42.1% 39.6% 43.2% 43.7% 41.9%
Severance, acquisition and other costs (38) (22) (16) (114) (28) (23) (39) (24)
Depreciation (1,727) (869) (858) (3,458) (854) (852) (879) (873)
Amortization (464) (234) (230) (886) (224) (225) (220) (217)
Finance costs
Interest expense (557) (280) (277) (1,125) (285) (280) (279) (281)
Interest on post-employment benefit obligations (23) (11) (12) (63) (16) (16) (15) (16)
Impairment of assets (456) (449) (7) (102) (96) (1) (1) (4)
Other (expense) income (127) (80) (47) 95 (18) 62 (54) 105
Income taxes (339) (96) (243) (1,129) (245) (319) (275) (290)
Net earnings from continuing operations 1,018 290 728 3,224 718 914 810 782
Net earnings from discontinued operations 9 4 5 29 5 8 7 9
Net earnings 1,027 294 733 3,253 723 922 817 791
Net earnings from continuing operations attributable to:
Common shareholders 908 233 675 3,011 667 859 754 731
Preferred shareholders 72 34 38 151 38 37 38 38
Non-controlling interest 38 23 15 62 13 18 18 13
Net earnings from continuing operations 1,018 290 728 3,224 718 914 810 782
Net earnings attributable to:
Common shareholders 917 237 680 3,040 672 867 761 740
Preferred shareholders 72 34 38 151 38 37 38 38
Non-controlling interest 38 23 15 62 13 18 18 13
Net earnings 1,027 294 733 3,253 723 922 817 791
Net earnings per common share - basic and diluted
Continuing operations $ 1.00 $ 0.26 $ 0.74 $ 3.34 $ 0.73 $ 0.96 $ 0.84 $ 0.81
Discontinued operations $ 0.01 $ - $ 0.01 $ 0.03 $ 0.01 $ - $ 0.01 $ 0.01
Net earnings per common share - basic and diluted $ 1.01 $ 0.26 $ 0.75 $ 3.37 $ 0.74 $ 0.96 $ 0.85 $ 0.82
Dividends per common share $ 1.6650 $ 0.8325 $ 0.8325 $ 3.1700 $ 0.7925 $ 0.7925 $ 0.7925 $ 0.7925
Weighted average number of common shares outstanding - basic (millions) 904.2 904.3 904.1 900.8 903.8 901.4 899.5 898.4
Weighted average number of common shares outstanding - diluted (millions) 904.4 904.4 904.5 901.4 904.8 902.2 900.3 898.7
Number of common shares outstanding (millions) 904.3 904.3 904.3 903.9 903.9 903.7 900.1 898.8
Adjusted net earnings and EPS
Net earnings attributable to common shareholders 917 237 680 3,040 672 867 761 740
Severance, acquisition and other costs 28 16 12 83 20 17 28 18
Net mark-to-market losses (gains) on derivatives used to economically hedge equity settled share-based compensation plans 27 7 20 (101) 45 (64) (9) (73)
Net (gains) losses on investments (21) (11) (10) 39 (18) - 53 4
Early debt redemption costs 12 - 12 13 - - 13 -
Impairment of assets 333 328 5 74 70 - 1 3
Net earnings from discontinued operations (9) (4) (5) (29) (5) (8) (7) (9)
Adjusted net earnings 1,287 573 714 3,119 784 812 840 683
Impact on net earnings per share $ 0.42 $ 0.37 $ 0.05 $ 0.12 $ 0.13 $ (0.05) $ 0.09 $ (0.05)
Adjusted EPS $ 1.42 $ 0.63 $ 0.79 $ 3.46 $ 0.86 $ 0.91 $ 0.93 $ 0.76
(A) Excludes post-employment benefit plans service cost
&R&"Helvetica,Regular"&17BCE Supplementary Financial Information - Second Quarter 2020 Page 3
BCE Inc. Seg Info Summary p4
BCE (1) (2) (3)
Segmented Data
(In millions of Canadian dollars, except where otherwise indicated) (unaudited) Q2 2020 Q2 2019 $ change % change YTD 2020 YTD 2019 $ change % change
Operating revenues
Bell Wireless 1,922 2,160 (238) (11.0%) 3,957 4,237 (280) (6.6%)
Bell Wireline 3,043 3,073 (30) (1.0%) 6,079 6,125 (46) (0.8%)
Bell Media 579 842 (263) (31.2%) 1,331 1,587 (256) (16.1%)
Inter-segment eliminations (190) (186) (4) (2.2%) (373) (371) (2) (0.5%)
Total 5,354 5,889 (535) (9.1%) 10,994 11,578 (584) (5.0%)
Operating costs
Bell Wireless (1,043) (1,192) 149 12.5% (2,150) (2,377) 227 9.5%
Bell Wireline (1,764) (1,723) (41) (2.4%) (3,465) (3,450) (15) (0.4%)
Bell Media (406) (588) 182 31.0% (1,003) (1,168) 165 14.1%
Inter-segment eliminations 190 186 4 2.2% 373 371 2 0.5%
Total (3,023) (3,317) 294 8.9% (6,245) (6,624) 379 5.7%
Adjusted EBITDA
Bell Wireless 879 968 (89) (9.2%) 1,807 1,860 (53) (2.8%)
Margin 45.7% 44.8% 0.9 pts 45.7% 43.9% 1.8 pts
Bell Wireline 1,279 1,350 (71) (5.3%) 2,614 2,675 (61) (2.3%)
Margin 42.0% 43.9% (1.9) pts 43.0% 43.7% (0.7) pts
Bell Media 173 254 (81) (31.9%) 328 419 (91) (21.7%)
Margin 29.9% 30.2% (0.3) pts 24.6% 26.4% (1.8) pts
Total 2,331 2,572 (241) (9.4%) 4,749 4,954 (205) (4.1%)
Margin 43.5% 43.7% (0.2) pts 43.2% 42.8% 0.4 pts
Capital expenditures
Bell Wireless 182 159 (23) (14.5%) 312 307 (5) (1.6%)
Capital intensity (5) 9.5% 7.4% (2.1) pts 7.9% 7.2% (0.7) pts
Bell Wireline 694 784 90 11.5% 1,316 1,459 143 9.8%
Capital intensity 22.8% 25.5% 2.7 pts 21.6% 23.8% 2.2 pts
Bell Media 24 24 - - 49 49 - -
Capital intensity 4.1% 2.9% (1.2) pts 3.7% 3.1% (0.6) pts
Total 900 967 67 6.9% 1,677 1,815 138 7.6%
Capital intensity 16.8% 16.4% (0.4) pts 15.3% 15.7% 0.4 pts
&R&"Helvetica,Regular"&13BCE Supplementary Financial Information - Second Quarter 2020 Page 4
BCE Inc. Seg Info HIST p5
BCE
Segmented Data - Historical Trend
(In millions of Canadian dollars, except where otherwise indicated) (unaudited) TOTAL 2020 Q2 20 Q1 20 TOTAL 2019 Q4 19 Q3 19 Q2 19 Q1 19
Operating revenues
Bell Wireless 3,957 1,922 2,035 9,001 2,454 2,310 2,160 2,077
Bell Wireline 6,079 3,043 3,036 12,317 3,135 3,057 3,073 3,052
Bell Media 1,331 579 752 3,217 879 751 842 745
Inter-segment eliminations (373) (190) (183) (742) (193) (178) (186) (185)
Total 10,994 5,354 5,640 23,793 6,275 5,940 5,889 5,689
Operating costs
Bell Wireless (2,150) (1,043) (1,107) (5,210) (1,523) (1,310) (1,192) (1,185)
Bell Wireline (3,465) (1,764) (1,701) (6,952) (1,787) (1,715) (1,723) (1,727)
Bell Media (1,003) (406) (597) (2,367) (674) (525) (588) (580)
Inter-segment eliminations 373 190 183 742 193 178 186 185
Total (6,245) (3,023) (3,222) (13,787) (3,791) (3,372) (3,317) (3,307)
Adjusted EBITDA
Bell Wireless 1,807 879 928 3,791 931 1,000 968 892
Margin 45.7% 45.7% 45.6% 42.1% 37.9% 43.3% 44.8% 42.9%
Bell Wireline 2,614 1,279 1,335 5,365 1,348 1,342 1,350 1,325
Margin 43.0% 42.0% 44.0% 43.6% 43.0% 43.9% 43.9% 43.4%
Bell Media 328 173 155 850 205 226 254 165
Margin 24.6% 29.9% 20.6% 26.4% 23.3% 30.1% 30.2% 22.1%
Total 4,749 2,331 2,418 10,006 2,484 2,568 2,572 2,382
Margin 43.2% 43.5% 42.9% 42.1% 39.6% 43.2% 43.7% 41.9%
Capital expenditures
Bell Wireless 312 182 130 671 203 161 159 148
Capital intensity 7.9% 9.5% 6.4% 7.5% 8.3% 7.0% 7.4% 7.1%
Bell Wireline 1,316 694 622 3,195 910 826 784 675
Capital intensity 21.6% 22.8% 20.5% 25.9% 29.0% 27.0% 25.5% 22.1%
Bell Media 49 24 25 108 37 22 24 25
Capital intensity 3.7% 4.1% 3.3% 3.4% 4.2% 2.9% 2.9% 3.4%
Total 1,677 900 777 3,974 1,150 1,009 967 848
Capital intensity 15.3% 16.8% 13.8% 16.7% 18.3% 17.0% 16.4% 14.9%
&R&13BCE Supplementary Financial Information - Second Quarter 2020 Page 5
Bell Wireless Summary p6
Bell Wireless (1) (3)
Q2 Q2 YTD YTD
(In millions of Canadian dollars, except where otherwise indicated) (unaudited) 2020 2019 % change 2020 2019 % change
Bell Wireless
Operating revenues
External service revenues 1,481 1,580 (6.3%) 3,016 3,108 (3.0%)
Inter-segment service revenues 12 12 - 24 24 -
Total operating service revenues 1,493 1,592 (6.2%) 3,040 3,132 (2.9%)
External product revenues 428 566 (24.4%) 915 1,102 (17.0%)
Inter-segment product revenues 1 2 (50.0%) 2 3 (33.3%)
Total operating product revenues 429 568 (24.5%) 917 1,105 (17.0%)
Total external revenues 1,909 2,146 (11.0%) 3,931 4,210 (6.6%)
Total operating revenues 1,922 2,160 (11.0%) 3,957 4,237 (6.6%)
Operating costs (1,043) (1,192) 12.5% (2,150) (2,377) 9.5%
Adjusted EBITDA 879 968 (9.2%) 1,807 1,860 (2.8%)
Adjusted EBITDA margin (Total operating revenues) 45.7% 44.8% 0.9 pts 45.7% 43.9% 1.8 pts
Capital expenditures 182 159 (14.5%) 312 307 (1.6%)
Capital intensity 9.5% 7.4% (2.1) pts 7.9% 7.2% (0.7) pts
Wireless subscriber gross activations (5) 372,710 517,650 (28.0%) 779,129 927,951 (16.0%)
Postpaid 243,166 375,094 (35.2%) 525,578 695,652 (24.4%)
Prepaid 129,544 142,556 (9.1%) 253,551 232,299 9.1%
Wireless subscriber net activations 34,702 149,478 (76.8%) 54,297 187,760 (71.1%)
Postpaid 21,632 102,980 (79.0%) 45,282 153,184 (70.4%)
Prepaid 13,070 46,498 (71.9%) 9,015 34,576 (73.9%)
Wireless subscribers end of period (EOP) 10,012,259 9,630,313 4.0% 10,012,259 9,630,313 4.0%
Postpaid 9,205,222 8,911,169 3.3% 9,205,222 8,911,169 3.3%
Prepaid 807,037 719,144 12.2% 807,037 719,144 12.2%
Blended average billing per user (ABPU)($/month) (5) (A) 62.77 68.79 (8.8%) 64.15 68.08 (5.8%)
Churn (%) (average per month) (5) 1.13% 1.29% 0.16 pts 1.21% 1.30% 0.09 pts
Postpaid 0.82% 1.06% 0.24 pts 0.90% 1.06% 0.16 pts
Prepaid 4.63% 4.20% (0.43) pts 4.83% 4.34% (0.49) pts
(A)In Q1 2020, we updated our definition of ABPU to include monthly billings related to device financing receivables owing from customers on contract. Consequently, we restated previously reported 2019 ABPU for comparability. See Note 5, Key performance indicators (KPIs), for the definition of ABPU.
&R&"Helvetica,Regular"&12BCE Supplementary Financial Information - Second Quarter 2020 Page 6
Bell Wireless HIST p7
Bell Wireless - Historical Trend
(In millions of Canadian dollars, except where otherwise indicated) (unaudited) YTD 2020 Q2 20 Q1 20 TOTAL 2019 Q4 19 Q3 19 Q2 19 Q1 19
Bell Wireless
Operating revenues
External service revenues 3,016 1,481 1,535 6,323 1,582 1,633 1,580 1,528
Inter-segment service revenues 24 12 12 49 12 13 12 12
Total operating service revenues 3,040 1,493 1,547 6,372 1,594 1,646 1,592 1,540
External product revenues 915 428 487 2,623 857 664 566 536
Inter-segment product revenues 2 1 1 6 3 - 2 1
Total operating product revenues 917 429 488 - 0 2,629 860 664 568 537
Total external revenues 3,931 1,909 2,022 8,946 2,439 2,297 2,146 2,064
Total operating revenues 3,957 1,922 2,035 9,001 2,454 2,310 2,160 2,077
Operating costs (2,150) (1,043) (1,107) (5,210) (1,523) (1,310) (1,192) (1,185)
Adjusted EBITDA 1,807 879 928 3,791 931 1,000 968 892
Adjusted EBITDA margin (Total operating revenues) 45.7% 45.7% 45.6% 42.1% 37.9% 43.3% 44.8% 42.9%
Capital expenditures 312 182 130 671 203 161 159 148
Capital intensity 7.9% 9.5% 6.4% 7.5% 8.3% 7.0% 7.4% 7.1%
Wireless subscriber gross activations 779,129 372,710 406,419 2,117,517 596,019 593,547 517,650 410,301
Postpaid 525,578 243,166 282,412 1,568,729 455,111 417,966 375,094 320,558
Prepaid 253,551 129,544 124,007 548,788 140,908 175,581 142,556 89,743
Wireless subscriber net activations (losses) 54,297 34,702 19,595 515,409 123,582 204,067 149,478 38,282
Postpaid 45,282 21,632 23,650 401,955 121,599 127,172 102,980 50,204
Prepaid 9,015 13,070 (4,055) 113,454 1,983 76,895 46,498 (11,922)
Wireless subscribers EOP 10,012,259 10,012,259 9,977,557 9,957,962 9,957,962 9,834,380 9,630,313 9,480,835
Postpaid 9,205,222 9,205,222 9,183,590 9,159,940 9,159,940 9,038,341 8,911,169 8,808,189
Prepaid 807,037 807,037 793,967 798,022 798,022 796,039 719,144 672,646
Blended ABPU ($/month)(A) 64.15 62.77 65.53 68.36 67.35 69.94 68.79 67.35
Churn (%)(average per month) 1.21% 1.13% 1.30% 1.39% 1.60% 1.34% 1.29% 1.31%
Postpaid 0.90% 0.82% 0.97% 1.13% 1.28% 1.12% 1.06% 1.07%
Prepaid 4.83% 4.63% 5.03% 4.44% 5.14% 3.89% 4.20% 4.49%
(A)In Q1 2020, we updated our definition of ABPU to include monthly billings related to device financing receivables owing from customers on contract. Consequently, we restated previously reported 2019 ABPU for comparability. See Note 5, Key performance indicators (KPIs), for the definition of ABPU.
&R&"Helvetica,Regular"&14BCE Supplementary Financial Information - Second Quarter 2020 Page 7
Bell Wireline Summary p8
Bell Wireline (1) (2) (3)
Q2 Q2 YTD YTD
(In millions of Canadian dollars, except where otherwise indicated) (unaudited) 2020 2019 % change 2020 2019 % change
Bell Wireline
Operating revenues
Data 1,916 1,914 0.1% 3,807 3,780 0.7%
Voice 863 897 (3.8%) 1,735 1,804 (3.8%)
Other services 58 62 (6.5%) 120 121 (0.8%)
Total external service revenues 2,837 2,873 (1.3%) 5,662 5,705 (0.8%)
Inter-segment service revenues 80 67 19.4% 156 134 16.4%
Total operating service revenues 2,917 2,940 (0.8%) 5,818 5,839 (0.4%)
Data 113 123 (8.1%) 236 265 (10.9%)
Equipment and other 13 10 30.0% 25 21 19.0%
Total external product revenues 126 133 (5.3%) 261 286 (8.7%)
Inter-segment product revenues - - - - - - -
Total operating product revenues 126 133 (5.3%) 261 286 (8.7%)
Total external revenues 2,963 3,006 (1.4%) 5,923 5,991 (1.1%)
Total operating revenues 3,043 3,073 (1.0%) 6,079 6,125 (0.8%)
Operating costs (1,764) (1,723) (2.4%) (3,465) (3,450) (0.4%)
Adjusted EBITDA 1,279 1,350 (5.3%) 2,614 2,675 (2.3%)
Adjusted EBITDA margin 42.0% 43.9% (1.9) pts 42.0 pts 43.0% 43.7% (0.7) pts
Capital expenditures 694 784 11.5% 1,316 1,459 9.8%
Capital intensity 22.8% 25.5% 2.7 pts (22.8) pts 21.6% 23.8% 2.2 pts
Retail high-speed Internet subscribers (5)
Retail net activations 19,023 19,414 (2.0%) 41,618 42,085 (1.1%)
Retail subscribers EOP 3,597,219 3,461,825 3.9% 3,597,219 3,461,825 3.9%
Retail TV subscribers (5)
Retail net subscriber (losses) activations (15,544) 2,350 (761.4%) (34,099) 790 n.m.
Internet protocol television (IPTV) (3,604) 16,775 (121.5%) (752) 37,691 (102.0%)
Satellite (11,940) (14,425) 17.2% (33,347) (36,901) 9.6%
Total retail subscribers EOP 2,738,365 2,767,201 (1.0%) 2,738,365 2,767,201 (1.0%)
IPTV 1,766,430 1,713,397 3.1% 1,766,430 1,713,397 3.1%
Satellite 971,935 1,053,804 (7.8%) 971,935 1,053,804 (7.8%)
Retail residential network access services (NAS) (5)
Retail residential NAS lines net losses (48,405) (72,780) 33.5% (110,000) (139,559) 21.2%
Retail residential NAS lines 2,587,483 2,821,249 (8.3%) 2,587,483 2,821,249 (8.3%)
n.m. : not meaningful
&R&"Helvetica,Regular"&13BCE Supplementary Financial Information - Second Quarter 2020 Page 8
Bell Wireline HIST p9
Bell Wireline - Historical Trend
(In millions of Canadian dollars, except where otherwise indicated) (unaudited) YTD 2020 Q2 20 Q1 20 TOTAL 2019 Q4 19 Q3 19 Q2 19 Q1 19
Bell Wireline
Operating revenues
Data 3,807 1,916 1,891 7,617 1,925 1,912 1,914 1,866
Voice 1,735 863 872 3,564 879 881 897 907
Other services 120 58 62 251 69 61 62 59
Total external service revenues 5,662 2,837 2,825 11,432 2,873 2,854 2,873 2,832
Inter-segment service revenues 156 80 76 281 79 68 67 67
Total operating service revenues 5,818 2,917 2,901 11,713 2,952 2,922 2,940 2,899
Data 236 113 123 556 166 125 123 142
Equipment and other 25 13 12 48 17 10 10 11
Total external product revenues 261 126 135 604 183 135 133 153
Inter-segment product revenues - - - - - - - -
Total operating product revenues 261 126 135 604 183 135 133 153
Total external revenues 5,923 2,963 2,960 12,036 3,056 2,989 3,006 2,985
Total operating revenues 6,079 3,043 3,036 12,317 3,135 3,057 3,073 3,052
Operating costs (3,465) (1,764) (1,701) (6,952) (1,787) (1,715) (1,723) (1,727)
Adjusted EBITDA 2,614 1,279 1,335 5,365 1,348 1,342 1,350 1,325
Adjusted EBITDA margin 43.0% 42.0% 44.0% 43.6% 43.0% 43.9% 43.9% 43.4%
Capital expenditures 1,316 694 622 3,195 910 826 784 675
Capital intensity 21.6% 0.0% 22.8% 20.5% 25.9% 0.0% 29.0% 27.0% 25.5% 22.1%
Retail high-speed Internet subscribers
Retail net activations 41,618 19,023 22,595 135,861 35,639 58,137 19,414 22,671
Retail subscribers EOP 3,597,219 3,597,219 3,578,196 3,555,601 3,555,601 3,519,962 3,461,825 3,442,411
Retail TV subscribers
Retail net subscriber (losses) activations (34,099) (15,544) (18,555) 6,053 421 4,842 2,350 (1,560)
IPTV (752) (3,604) 2,852 91,476 22,039 31,746 16,775 20,916
Satellite (33,347) (11,940) (21,407) (85,423) (21,618) (26,904) (14,425) (22,476)
Total retail subscribers EOP 2,738,365 2,738,365 2,753,909 2,772,464 2,772,464 2,772,043 2,767,201 2,764,851
IPTV 1,766,430 1,766,430 1,770,034 1,767,182 1,767,182 1,745,143 1,713,397 1,696,622
Satellite 971,935 971,935 983,875 1,005,282 1,005,282 1,026,900 1,053,804 1,068,229
Retail residential network access services (NAS)
Retail residential NAS lines net losses (110,000) (48,405) (61,595) (263,325) (58,110) (65,656) (72,780) (66,779)
Retail residential NAS lines 2,587,483 2,587,483 2,635,888 2,697,483 2,697,483 2,755,593 2,821,249 2,894,029
&C
&R&"Helvetica,Regular"&16BCE Supplementary Financial Information - Second Quarter 2020 Page 9
Net Debt & Bell other info p10
BCE(2)
Net debt and other information
BCE - Net debt and preferred shares
(In millions of Canadian dollars, except where otherwise indicated) (unaudited)
June 30 March 31 December 31
2020 2020 2019
Debt due within one year 2,584 4,209 3,881
Long-term debt 25,024 25,513 22,415
50% of preferred shares 2,002 2,002 2,002
Cash and cash equivalents (1,547) (2,679) (145)
Net debt (4) 28,063 29,045 28,153
Net debt leverage ratio (4) 2.86 2.89 2.81
Adjusted EBITDA /net interest expense ratio (4) 8.36 8.58 8.50
Cash flow information
(In millions of Canadian dollars, except where otherwise indicated) (unaudited) Q2 Q2 YTD YTD
2020 2019 $ change % change 2020 2019 $ change % change
Free cash flow (FCF) (4)
Cash flows from operating activities 2,562 2,093 469 22.4% 4,013 3,609 404 11.2%
Capital expenditures (900) (967) 67 6.9% (1,677) (1,815) 138 7.6%
Cash dividends paid on preferred shares (33) (37) 4 10.8% (69) (63) (6) (9.5%)
Cash dividends paid by subsidiaries to non-controlling interest (12) (12) - - (26) (39) 13 33.3%
Acquisition and other costs paid 11 21 (10) (47.6%) 20 50 (30) (60.0%)
Cash from discontinued operations (included in cash flows from operating activities) (17) (22) 5 22.7% (39) (47) 8 17.0%
FCF 1,611 1,076 535 49.7% 2,222 1,695 527 31.1%
Cash flow information - Historical trend
(In millions of Canadian dollars, except where otherwise indicated) (unaudited) YTD Q2 Q1 TOTAL Q4 Q3 Q2 Q1
2020 2020 2020 2019 2019 2019 2019 2019
FCF
Cash flows from operating activities 4,013 2,562 1,451 7,958 2,091 2,258 2,093 1,516
Capital expenditures (1,677) (900) (777) (3,974) (1,150) (1,009) (967) (848)
Cash dividends paid on preferred shares (69) (33) (36) (147) (37) (47) (37) (26)
Cash dividends paid by subsidiaries to non-controlling interest (26) (12) (14) (65) (14) (12) (12) (27)
Acquisition and other costs paid 20 11 9 60 7 3 21 29
Cash from discontinued operations (included in cash flows from operating activities) (39) (17) (22) (94) (23) (24) (22) (25)
FCF 2,222 1,611 611 3,738 874 1,169 1,076 619
&R&"Helvetica,Regular"&14BCE Supplementary Financial Information - Second Quarter 2020 Page 10
BCE Inc. BS p11
BCE (2)
Consolidated Statements of Financial Position
June 30 March 31 December 31
(In millions of Canadian dollars, except where otherwise indicated) (unaudited) 2020 2020 2019
ASSETS
Current assets
Cash 1,297 943 141
Cash equivalents 250 1,736 4
Trade and other receivables 2,812 2,990 3,038
Inventory 445 487 427
Contract assets 921 1,037 1,111
Contract costs 399 416 415
Prepaid expenses 301 280 194
Other current assets 212 419 190
Assets held for sale 825 - 0 - 0
Total current assets 7,462 8,308 5,520
Non-current assets
Contract assets 328 452 533
Contract costs 341 363 368
Property, plant and equipment 26,840 27,432 27,636
Intangible assets 12,897 13,513 13,352
Deferred tax assets 123 90 98
Investments in associates and joint ventures 718 730 698
Other non-current assets 1,931 3,960 1,274
Goodwill 10,551 10,667 10,667
Total non-current assets 53,729 57,207 54,626
Total assets 61,191 65,515 60,146
LIABILITIES
Current liabilities
Trade payables and other liabilities 3,341 3,335 3,954
Contract liabilities 723 725 683
Interest payable 229 192 227
Dividends payable 766 767 729
Current tax liabilities 287 186 303
Debt due within one year 2,584 4,209 3,881
Liabilities held for sale 205 - 0 - 0
Total current liabilities 8,135 9,414 9,777
Non-current liabilities
Contract liabilities 216 211 207
Long-term debt 25,024 25,513 22,415
Deferred tax liabilities 3,765 4,444 3,561
Post-employment benefit obligations 1,980 1,603 1,907
Other non-current liabilities 934 906 871
Total non-current liabilities 31,919 32,677 28,961
Total liabilities 40,054 42,091 38,738
EQUITY
Equity attributable to BCE shareholders
Preferred shares 4,004 4,004 4,004
Common shares 20,386 20,386 20,363
Contributed surplus 1,155 1,156 1,178
Accumulated other comprehensive income 386 528 161
Deficit (5,142) (2,990) (4,632)
Total equity attributable to BCE shareholders 20,789 23,084 21,074
Non-controlling interest 348 340 334
Total equity 21,137 23,424 21,408
Total liabilities and equity 61,191 65,515 60,146
Number of common shares outstanding (millions) 904.3 904.3 903.9
&R&"Helvetica,Regular"&7BCE Supplementary Financial Information - Second Quarter 2020 Page 11
BCE Inc. CF Summary p12
BCE (2)
Consolidated Cash Flow Data
Q2 Q2 YTD YTD
(In millions of Canadian dollars, except where otherwise indicated) (unaudited) 2020 2019 $ change 2020 2019 $ change
Net earnings from continuing operations 290 810 (520) 1,018 1,592 (574)
Adjustments to reconcile net earnings from continuing operations to cash flows from operating activities
Severance, acquisition and other costs 22 39 (17) 38 63 (25)
Depreciation and amortization 1,103 1,099 4 2,191 2,189 2
Post-employment benefit plans cost 75 73 2 162 157 5
Net interest expense 275 271 4 545 547 (2)
Impairment of assets 449 1 448 456 5 451
Losses on investments - - - - 4 (4)
Income taxes 96 275 (179) 339 565 (226)
Contributions to post-employment benefit plans (71) (70) (1) (150) (151) 1
Payments under other post-employment benefit plans (12) (19) 7 (29) (37) 8
Severance and other costs paid (13) (33) 20 (48) (99) 51
Interest paid (240) (269) 29 (556) (534) (22)
Income taxes paid (net of refunds) 6 (127) 133 (227) (416) 189
Acquisition and other costs paid (11) (21) 10 (20) (50) 30
Net change in operating assets and liabilities 576 42 534 255 (273) 528
Cash from discontinued operations 17 22 (5) 39 47 (8)
Cash flows from operating activities 2,562 2,093 469 4,013 3,609 404
Capital expenditures (900) (967) 67 (1,677) (1,815) 138
Cash dividends paid on preferred shares (33) (37) 4 (69) (63) (6)
Cash dividends paid by subsidiaries to non-controlling interest (12) (12) - (26) (39) 13
Acquisition and other costs paid 11 21 (10) 20 50 (30)
Cash from discontinued operations (included in cash flows from operating activities) (17) (22) 5 (39) (47) 8
Free cash flow 1,611 1,076 535 2,222 1,695 527
Cash from discontinued operations (included in cash flows from operating activities) 17 22 (5) 39 47 (8)
Business acquisitions (23) (50) 27 (23) (50) 27
Acquisition and other costs paid (11) (21) 10 (20) (50) 30
Other investing activities (13) 32 (45) (19) 8 (27)
Cash used in discontinued operations (included in cash flows from investing activities) (8) (5) (3) (15) (7) (8)
(Decrease) increase in notes payable (1,204) 277 (1,481) (1,434) 844 (2,278)
(Decrease) increase in securitized trade receivables (400) - (400) - 31 (31)
Issue of long-term debt 1,975 1,405 570 5,256 1,405 3,851
Repayment of long-term debt (2,221) (1,597) (624) (2,930) (1,800) (1,130)
Issue of common shares - 44 (44) 22 64 (42)
Purchase of shares for settlement of share-based payments (75) (10) (65) (169) (86) (83)
Cash dividends paid on common shares (753) (712) (41) (1,469) (1,390) (79)
Other financing activities (25) (33) 8 (55) (39) (16)
Cash used in discontinued operations (included in cash flows from financing activities) (2) (2) - (3) (3) -
(2,743) (650) (2,093) (820) (1,026) 206
Net (decrease) increase in cash and cash equivalents (1,132) 426 (1,558) 1,402 669 733
Cash and cash equivalents at beginning of period 2,679 668 2,011 145 425 (280)
Cash and cash equivalents at end of period 1,547 1,094 453 1,547 1,094 453
&R&"Helvetica,Regular"&12BCE Supplementary Financial Information - Second Quarter 2020 Page 12
BCE Inc. CF HIST p13
BCE
Consolidated Cash Flow Data - Historical Trend
(In millions of Canadian dollars, except where otherwise indicated) (unaudited) YTD 2020 Q2 20 Q1 20 TOTAL 2019 Q4 19 Q3 19 Q2 19 Q1 19
Net earnings from continuing operations 1,018 290 728 3,224 718 914 810 782
Adjustments to reconcile net earnings from continuing operations to cash flows from operating activities
Severance, acquisition and other costs 38 22 16 114 28 23 39 24
Depreciation and amortization 2,191 1,103 1,088 4,344 1,078 1,077 1,099 1,090
Post-employment benefit plans cost 162 75 87 309 76 76 73 84
Net interest expense 545 275 270 1,101 280 274 271 276
Impairment of assets 456 449 7 102 96 1 1 4
Losses on investments - - - (18) (22) - - 4
Income taxes 339 96 243 1,129 245 319 275 290
Contributions to post-employment benefit plans (150) (71) (79) (290) (77) (62) (70) (81)
Payments under other post-employment benefit plans (29) (12) (17) (72) (18) (17) (19) (18)
Severance and other costs paid (48) (13) (35) (167) (23) (45) (33) (66)
Interest paid (556) (240) (316) (1,079) (261) (284) (269) (265)
Income taxes paid (net of refunds) (227) 6 (233) (725) (221) (88) (127) (289)
Acquisition and other costs paid (20) (11) (9) (60) (7) (3) (21) (29)
Net change in operating assets and liabilities 255 576 (321) (48) 176 49 42 (315)
Cash from discontinued operations 39 17 22 94 23 24 22 25
Cash flows from operating activities 4,013 2,562 1,451 7,958 2,091 2,258 2,093 1,516
Capital expenditures (1,677) (900) (777) (3,974) (1,150) (1,009) (967) (848)
Cash dividends paid on preferred shares (69) (33) (36) (147) (37) (47) (37) (26)
Cash dividends paid by subsidiaries to non-controlling interest (26) (12) (14) (65) (14) (12) (12) (27)
Acquisition and other costs paid 20 11 9 60 7 3 21 29
Cash from discontinued operations (included in cash flows from operating activities) (39) (17) (22) (94) (23) (24) (22) (25)
Free cash flow 2,222 1,611 611 3,738 874 1,169 1,076 619
Cash from discontinued operations (included in cash flows from operating activities) 39 17 22 94 23 24 22 25
Business acquisitions (23) (23) - (51) - (1) (50) -
Acquisition and other costs paid (20) (11) (9) (60) (7) (3) (21) (29)
Other investing activities (19) (13) (6) 7 (5) 4 32 (24)
Cash used in discontinued operations (included in cash flows from investing activities) (15) (8) (7) (18) (7) (4) (5) (2)
(Decrease) increase in notes payable (1,434) (1,204) (230) (1,073) (851) (1,066) 277 567
(Decrease) increase in securitized trade receivables - (400) 400 131 100 - - 31
Issue of long-term debt 5,256 1,975 3,281 1,954 - 549 1,405 -
Repayment of long-term debt (2,930) (2,221) (709) (2,221) (196) (225) (1,597) (203)
Issue of common shares 22 - 22 240 15 161 44 20
Purchase of shares for settlement of share-based payments (169) (75) (94) (142) (42) (14) (10) (76)
Cash dividends paid on common shares (1,469) (753) (716) (2,819) (716) (713) (712) (678)
Other financing activities (55) (25) (30) (54) (7) (8) (33) (6)
Cash used in discontinued operations (included in cash flows from financing activities) (3) (2) (1) (6) (2) (1) (2) (1)
(820) (2,743) 1,923 (4,018) (1,695) (1,297) (650) (376)
Net increase (decrease) in cash and cash equivalents 1,402 (1,132) 2,534 (280) (821) (128) 426 243
Cash and cash equivalents at beginning of period 145 2,679 145 425 966 1,094 668 425
Cash and cash equivalents at end of period 1,547 1,547 2,679 145 145 966 1,094 668
&R&13BCE Supplementary Financial Information - Second Quarter 2020 Page 13
Accomp Notes p14
&RBCE Supplementary Financial Information - Second Quarter 2020 Page 14
Accomp Notes p15
&RBCE Supplementary Financial Information - Second Quarter 2020 Page 15
Accomp Notes p16
&RBCE Supplementary Financial Information - Second Quarter 2020 Page 16

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BCE Inc. published this content on 06 August 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 07 August 2020 09:03:22 UTC