Enhanced Investments - Financial Portal

Published: 2023-02-02 10:57:04 ET

EX-99.2 3 d313216dex992.htm SUPPLEMENTARY FINANCIAL INFORMATION - FOURTH QUARTER 2022 SUPPLEMENTARY FINANCIAL INFORMATION - FOURTH QUARTER 2022

Exhibit 99.2




Q4		Supplementary Financial Information Fourth Quarter 2022

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

BCE ⁽¹⁾

Consolidated Operational Data


(In millions of Canadian dollars, except share amounts) (unaudited)	Q4 2022			Q4 2021			$ change			% change		TOTAL 2022			TOTAL 2021			$ change			% change
Operating revenues
Service		5,353			5,243			110			2.1%		20,956			20,350			606			3.0%
Product		1,086			966			120			12.4%		3,218			3,099			119			3.8%
Total operating revenues		6,439			6,209			230			3.7%		24,174			23,449			725			3.1%
Operating costs		(4,002	)		(3,779	)		(223	)		(5.9%)		(13,975	)		(13,556	)		(419	)		(3.1%)
Adjusted EBITDA ^(A)		2,437			2,430			7			0.3%		10,199			9,893			306			3.1%
*Adjusted EBITDA margin* ^(B)(4)		*37.8%*			39.1%						(1.3) pts		*42.2%*			42.2%						-
Severance, acquisition and other costs		(19	)		(63	)		44			69.8%		(94	)		(209	)		115			55.0%
Depreciation		(922	)		(925	)		3			0.3%		(3,660	)		(3,627	)		(33	)		(0.9%)
Amortization		(270	)		(251	)		(19	)		(7.6%)		(1,063	)		(982	)		(81	)		(8.2%)
Finance costs
Interest expense		(319	)		(275	)		(44	)		(16.0%)		(1,146	)		(1,082	)		(64	)		(5.9%)
Net return (interest) on post-employment benefit plans		13			(5	)		18			n.m.		51			(20	)		71			n.m.
Impairment of assets		(150	)		(30	)		(120	)		n.m.		(279	)		(197	)		(82	)		(41.6%)
Other income (expense)		19			26			(7	)		(26.9%)		(115	)		160			(275	)		n.m.
Income taxes		(222	)		(249	)		27			10.8%		(967	)		(1,044	)		77			7.4%
Net earnings		567			658			(91	)		(13.8%)		2,926			2,892			34			1.2%

Net earnings attributable to:
Common shareholders		528			625			(97	)		(15.5%)		2,716			2,709			7			0.3%
Preferred shareholders		44			33			11			33.3%		152			131			21			16.0%
Non-controlling interest		(5	)		-			(5	)		n.m.		58			52			6			11.5%
Net earnings		567			658			(91	)		(13.8%)		2,926			2,892			34			1.2%

Net earnings per common share - basic and diluted	$	0.58		$	0.69		$	(0.11	)		(15.9%)	$	2.98		$	2.99		$	(0.01	)		(0.3%)

Dividends per common share	$	0.9200		$	0.8750		$	0.0450			5.1%	$	3.6800		$	3.5000		$	0.1800			5.1%

Weighted average number of common shares outstanding - basic (millions)		912.0			908.8								911.5			906.3
Weighted average number of common shares outstanding - diluted (millions)		912.2			909.6								912.0			906.7
Number of common shares outstanding (millions)		912.0			909.0								912.0			909.0

Adjusted net earnings and adjusted EPS
Net earnings attributable to common shareholders		528			625			(97	)		(15.5%)		2,716			2,709			7			0.3%
Reconciling items:
Severance, acquisition and other costs		19			63			(44	)		(69.8%)		94			209			(115	)		(55.0%)
Net mark-to-market (gains) losses on derivatives used to economically hedge equity settled share-based compensation plans		(27	)		(57	)		30			52.6%		53			(278	)		331			n.m.
Net equity losses on investment in associates and joint ventures		-			35			(35	)		(100.0%)		42			49			(7	)		(14.3%)
Net losses (gains) on investments		29			6			23			n.m.		(24	)		6			(30	)		n.m.
Early debt redemption costs		-			-			-			-		18			53			(35	)		(66.0%)
Impairment of assets		150			30			120			n.m.		279			197			82			41.6%
Income taxes for the above reconciling items		(37	)		(9	)		(28	)		n.m.		(117	)		(48	)		(69	)		n.m.
Non-controlling interest (NCI) for the above reconciling items		(8	)		(1	)		(7	)		n.m.		(4	)		(2	)		(2	)		(100.0%)
Adjusted net earnings ^(A)		654			692			(38	)		(5.5%)		3,057			2,895			162			5.6%
Adjusted EPS ^(A)	$	0.71		$	0.76		$	(0.05	)		(6.6%)	$	3.35		$	3.19		$	0.16			5.0%

n.m. : not meaningful

^(A)

Adjusted EBITDA is a total of segments measure, adjusted net earnings is a non-GAAP financial measure and adjusted EPS is a non-GAAP ratio. Refer to note 3.3, Total of segments measures, note 3.1, Non-GAAP financial measures and note 3.2, Non-GAAP ratios in the Accompanying Notes to this report for more information on these measures.

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

BCE Supplementary Financial Information - Fourth Quarter 2022 Page 2

BCE

Consolidated Operational Data - Historical Trend


(In millions of Canadian dollars, except share amounts) (unaudited)		TOTAL 2022		Q4 22		Q3 22		Q2 22		Q1 22		TOTAL 2021		Q4 21		Q3 21		Q2 21		Q1 21
Operating revenues
Service		20,956		5,353		5,193		5,233		5,177		20,350		5,243		5,099		5,040		4,968
Product		3,218		1,086		831		628		673		3,099		966		737		658		738
Total operating revenues		24,174		6,439		6,024		5,861		5,850		23,449		6,209		5,836		5,698		5,706
Operating costs		(13,975)		(4,002)		(3,436)		(3,271)		(3,266)		(13,556)		(3,779)		(3,278)		(3,222)		(3,277)
Adjusted EBITDA		10,199		2,437		2,588		2,590		2,584		9,893		2,430		2,558		2,476		2,429
*Adjusted EBITDA margin*		*42.2%*		*37.8%*		43.0%		44.2%		44.2%		42.2%		39.1%		43.8%		43.5%		42.6%
Severance, acquisition and other costs		(94)		(19)		(22)		(40)		(13)		(209)		(63)		(50)		(7)		(89)
Depreciation		(3,660)		(922)		(914)		(933)		(891)		(3,627)		(925)		(902)		(905)		(895)
Amortization		(1,063)		(270)		(267)		(266)		(260)		(982)		(251)		(245)		(248)		(238)
Finance costs
Interest expense		(1,146)		(319)		(298)		(269)		(260)		(1,082)		(275)		(272)		(268)		(267)
Net return (interest) on post-employment benefit plans		51		13		13		7		18		(20)		(5)		(5)		(5)		(5)
Impairment of assets		(279)		(150)		(21)		(106)		(2)		(197)		(30)		-		(164)		(3)
Other (expense) income		(115)		19		(130)		(97)		93		160		26		35		91		8
Income taxes		(967)		(222)		(178)		(232)		(335)		(1,044)		(249)		(306)		(236)		(253)
Net earnings		2,926		567		771		654		934		2,892		658		813		734		687

Net earnings attributable to:
Common shareholders		2,716		528		715		596		877		2,709		625		757		685		642
Preferred shareholders		152		44		39		35		34		131		33		34		32		32
Non-controlling interest		58		(5)		17		23		23		52		-		22		17		13
Net earnings		2,926		567		771		654		934		2,892		658		813		734		687

Net earnings per common share - basic and diluted	$	2.98	$	0.58	$	0.78	$	0.66	$	0.96	$	2.99	$	0.69	$	0.83	$	0.76	$	0.71

Dividends per common share	$	3.6800	$	0.9200	$	0.9200	$	0.9200	$	0.9200	$	3.5000	$	0.8750	$	0.8750	$	0.8750	$	0.8750

Weighted average number of common shares outstanding - basic (millions)		911.5		912.0		911.9		911.9		910.1		906.3		908.8		906.9		905.0		904.5
Weighted average number of common shares outstanding - diluted (millions)		912.0		912.2		912.3		912.8		910.8		906.7		909.6		907.6		905.3		904.5
Number of common shares outstanding (millions)		912.0		912.0		911.9		911.9		911.8		909.0		909.0		908.8		905.7		904.6

Adjusted net earnings and adjusted EPS
Net earnings attributable to common shareholders		2,716		528		715		596		877		2,709		625		757		685		642
Reconciling items:
Severance, acquisition and other costs		94		19		22		40		13		209		63		50		7		89
Net mark-to-market losses (gains) on derivatives used to economically hedge equity settled share-based compensation plans		53		(27)		74		81		(75)		(278)		(57)		(61)		(100)		(60)
Net equity losses on investments in associates and joint ventures		42		-		-		42		-		49		35		-		14		-
Net (gains) losses on investments		(24)		29		-		(16)		(37)		6		6		-		-		-
Early debt redemption costs		18		-		-		-		18		53		-		-		-		53
Impairment of assets		279		150		21		106		2		197		30		-		164		3
Income taxes for the above reconciling items		(117)		(37)		(31)		(62)		13		(48)		(9)		2		(18)		(23)
NCI for the above reconciling items		(4)		(8)		-		4		-		(2)		(1)		-		(1)		-
Adjusted net earnings		3,057		654		801		791		811		2,895		692		748		751		704
Adjusted EPS	$	3.35		0.71	$	0.88	$	0.87	$	0.89	$	3.19	$	0.76	$	0.82	$	0.83	$	0.78

BCE Supplementary Financial Information - Fourth Quarter 2022 Page 3

BCE ^{(1) (2)}

Segmented Data


(In millions of Canadian dollars, except where otherwise indicated) (unaudited)	Q4 2022			Q4 2021			$ change			% change		TOTAL 2022			TOTAL 2021			$ change			% change

Operating revenues
Bell Wireless		2,666			2,475			191			7.7%		9,588			8,999			589			6.5%
Bell Wireline		3,094			3,079			15			0.5%		12,148			12,178			(30	)		(0.2%)
Bell Media		889			849			40			4.7%		3,254			3,036			218			7.2%
Inter-segment eliminations		(210	)		(194	)		(16	)		(8.2%)		(816	)		(764	)		(52	)		(6.8%)
Total		6,439			6,209			230			3.7%		24,174			23,449			725			3.1%

Operating costs
Bell Wireless		(1,676	)		(1,524	)		(152	)		(10.0%)		(5,451	)		(5,146	)		(305	)		(5.9%)
Bell Wireline		(1,776	)		(1,753	)		(23	)		(1.3%)		(6,831	)		(6,863	)		32			0.5%
Bell Media		(760	)		(696	)		(64	)		(9.2%)		(2,509	)		(2,311	)		(198	)		(8.6%)
Inter-segment eliminations		210			194			16			8.2%		816			764			52			6.8%
Total		(4,002	)		(3,779	)		(223	)		(5.9%)		(13,975	)		(13,556	)		(419	)		(3.1%)

Adjusted EBITDA
Bell Wireless		990			951			39			4.1%		4,137			3,853			284			7.4%
Margin		*37.1%*			38.4%						(1.3) pts		*43.1%*			42.8%						0.3 pts
Bell Wireline		1,318			1,326			(8	)		(0.6%)		5,317			5,315			2			-
Margin		*42.6%*			43.1%						(0.5) pts		*43.8%*			43.6%						0.2 pts
Bell Media		129			153			(24	)		(15.7%)		745			725			20			2.8%
Margin		*14.5%*			18.0%						(3.5) pts		*22.9%*			23.9%						(1.0) pts
Total		2,437			2,430			7			0.3%		10,199			9,893			306			3.1%
Margin		*37.8%*			39.1%						(1.3) pts		*42.2%*			42.2%						-

Capital expenditures
Bell Wireless		308			273			(35	)		(12.8%)		1,084			1,120			36			3.2%
Capital intensity ^(A)(4)		*11.6%*			11.0%						(0.6) pts		*11.3%*			12.4%						1.1 pts
Bell Wireline		1,251			1,141			(110	)		(9.6%)		3,887			3,612			(275	)		(7.6%)
Capital intensity		*40.4%*			37.1%						(3.3) pts		*32.0%*			29.7%						(2.3) pts
Bell Media		79			52			(27	)		(51.9%)		162			120			(42	)		(35.0%)
Capital intensity		*8.9%*			6.1%						(2.8) pts		*5.0%*			4.0%						(1.0) pts
Total		1,638			1,466			(172	)		(11.7%)		5,133			4,852			(281	)		(5.8%)
Capital intensity		*25.4%*			23.6%						(1.8) pts		*21.2%*			20.7%						(0.5) pts

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

BCE Supplementary Financial Information - Fourth Quarter 2022 Page 4

BCE⁽²⁾

Segmented Data - Historical Trend


(In millions of Canadian dollars, except where otherwise indicated) (unaudited)	TOTAL 2022			Q4 22			Q3 22			Q2 22			Q1 22			TOTAL 2021			Q4 21			Q3 21			Q2 21			Q1 21

Operating revenues
Bell Wireless		9,588			2,666			2,466			2,246			2,210			8,999			2,475			2,296			2,128			2,100
Bell Wireline		12,148			3,094			3,046			2,995			3,013			12,178			3,079			3,015			3,003			3,081
Bell Media		3,254			889			719			821			825			3,036			849			719			755			713
Inter-segment eliminations		(816	)		(210	)		(207	)		(201	)		(198	)		(764	)		(194	)		(194	)		(188	)		(188	)
Total		24,174			6,439			6,024			5,861			5,850			23,449			6,209			5,836			5,698			5,706

Operating costs
Bell Wireless		(5,451	)		(1,676	)		(1,377	)		(1,197	)		(1,201	)		(5,146	)		(1,524	)		(1,286	)		(1,159	)		(1,177	)
Bell Wireline		(6,831	)		(1,776	)		(1,729	)		(1,680	)		(1,646	)		(6,863	)		(1,753	)		(1,682	)		(1,710	)		(1,718	)
Bell Media		(2,509	)		(760	)		(537	)		(595	)		(617	)		(2,311	)		(696	)		(504	)		(541	)		(570	)
Inter-segment eliminations		816			210			207			201			198			764			194			194			188			188
Total		(13,975	)		(4,002	)		(3,436	)		(3,271	)		(3,266	)		(13,556	)		(3,779	)		(3,278	)		(3,222	)		(3,277	)

Adjusted EBITDA
Bell Wireless		4,137			990			1,089			1,049			1,009			3,853			951			1,010			969			923
Margin		*43.1%*			*37.1%*			44.2%			46.7%			45.7%			42.8%			38.4%			44.0%			45.5%			44.0%
Bell Wireline		5,317			1,318			1,317			1,315			1,367			5,315			1,326			1,333			1,293			1,363
Margin		*43.8%*			*42.6%*			43.2%			43.9%			45.4%			43.6%			43.1%			44.2%			43.1%			44.2%
Bell Media		745			129			182			226			208			725			153			215			214			143
Margin		*22.9%*			*14.5%*			25.3%			27.5%			25.2%			23.9%			18.0%			29.9%			28.3%			20.1%
Total		10,199			2,437			2,588			2,590			2,584			9,893			2,430			2,558			2,476			2,429
Margin		*42.2%*			*37.8%*			43.0%			44.2%			44.2%			42.2%			39.1%			43.8%			43.5%			42.6%

Capital expenditures
Bell Wireless		1,084			308			248			280			248			1,120			273			255			306			286
Capital intensity		*11.3%*			*11.6%*			10.1%			12.5%			11.2%			12.4%			11.0%			11.1%			14.4%			13.6%
Bell Wireline		3,887			1,251			1,038			910			688			3,612			1,141			884			880			707
Capital intensity		*32.0%*			*40.4%*			34.1%			30.4%			22.8%			29.7%			37.1%			29.3%			29.3%			22.9%
Bell Media		162			79			31			29			23			120			52			25			24			19
Capital intensity		*5.0%*			*8.9%*			4.3%			3.5%			2.8%			4.0%			6.1%			3.5%			3.2%			2.7%
Total		5,133			1,638			1,317			1,219			959			4,852			1,466			1,164			1,210			1,012
Capital intensity		*21.2%*			*25.4%*			21.9%			20.8%			16.4%			20.7%			23.6%			19.9%			21.2%			17.7%

BCE Supplementary Financial Information - Fourth Quarter 2022 Page 5

Bell Wireless ^{(1) (2)}


(In millions of Canadian dollars, except where otherwise indicated) (unaudited)	Q4 2022			Q4 2021			% change		TOTAL 2022			TOTAL 2021			% change

Bell Wireless

Operating revenues

External service revenues		1,735			1,641			5.7%		6,821			6,355			7.3%

Inter-segment service revenues		12			11			9.1%		44			45			(2.2%)

Operating service revenues		1,747			1,652			5.8%		6,865			6,400			7.3%

External product revenues		917			821			11.7%		2,714			2,593			4.7%

Inter-segment product revenues		2			2			-		9			6			50.0%

Operating product revenues		919			823			11.7%		2,723			2,599			4.8%

Total external revenues		2,652			2,462			7.7%		9,535			8,948			6.6%

Total operating revenues		2,666			2,475			7.7%		9,588			8,999			6.5%

Operating costs		(1,676	)		(1,524	)		(10.0%)		(5,451	)		(5,146	)		(5.9%)

Adjusted EBITDA		990			951			4.1%		4,137			3,853			7.4%

Adjusted EBITDA margin		*37.1%*			38.4%			(1.3) pts		*43.1%*			42.8%			0.3 pts

Capital expenditures		308			273			(12.8%)		1,084			1,120			3.2%

Capital intensity		*11.6%*			11.0%			(0.6) pts		*11.3%*			12.4%			1.1 pts

Mobile phone subscribers⁽⁴⁾

Gross subscriber activations		605,034			495,076			22.2%		1,953,912			1,653,771			18.1%

Postpaid		467,294			373,621			25.1%		1,355,772			1,201,659			12.8%

Prepaid		137,740			121,455			13.4%		598,140			452,112			32.3%
Net subscriber activations (losses)		122,621			109,726			11.8%		489,901			294,842			66.2%

Postpaid		154,617			109,527			41.2%		439,842			301,706			45.8%

Prepaid		(31,996	)		199			n.m.		50,059			(6,864	)		n.m.

Subscribers end of period (EOP)		9,949,086			9,459,185			5.2%		9,949,086			9,459,185			5.2%

Postpaid		9,069,887			8,630,045			5.1%		9,069,887			8,630,045			5.1%

Prepaid		879,199			829,140			6.0%		879,199			829,140			6.0%

Blended average revenue per user (ARPU) ($/month)^(A)(4)		58.88			58.61			0.5%		59.30			57.66			2.8%

Blended churn (%) (average per month)⁽⁴⁾		1.63%			1.37%			(0.26) pts		1.27%			1.23%			(0.04) pts

Postpaid		1.22%			1.08%			(0.14) pts		0.92%			0.93%			0.01 pts

Prepaid		5.74%			4.42%			(1.32) pts		4.85%			4.31%			(0.54) pts

Mobile connected device subscribers⁽⁴⁾

Net subscriber activations		104,447			38,998			n.m.		202,024			193,641			4.3%

Subscribers EOP		2,451,818			2,249,794			9.0%		2,451,818			2,249,794			9.0%

n.m. : not meaningful

^(A)	Mobile phone blended ARPU is calculated by dividing wireless operating service revenues by the average mobile phone subscriber base for the specified period and is expressed as a dollar unit per month.

BCE Supplementary Financial Information - Fourth Quarter 2022 Page 6

Bell Wireless - Historical Trend⁽²⁾


(In millions of Canadian dollars, except where otherwise indicated) (unaudited)	TOTAL 2022			Q4 22			Q3 22			Q2 22			Q1 22			TOTAL 2021			Q4 21			Q3 21			Q2 21			Q1 21

Bell Wireless
Operating revenues

External service revenues		6,821			1,735			1,759			1,692			1,635			6,355			1,641			1,642			1,569			1,503

Inter-segment service revenues		44			12			10			11			11			45			11			12			11			11

Operating service revenues		6,865			1,747			1,769			1,703			1,646			6,400			1,652			1,654			1,580			1,514

External product revenues		2,714			917			692			542			563			2,593			821			642			546			584

Inter-segment product revenues		9			2			5			1			1			6			2			-			2			2

Operating product revenues		2,723			919			697			543			564			2,599			823			642			548			586

Total external revenues		9,535			2,652			2,451			2,234			2,198			8,948			2,462			2,284			2,115			2,087

Total operating revenues		9,588			2,666			2,466			2,246			2,210			8,999			2,475			2,296			2,128			2,100

Operating costs		(5,451	)		(1,676	)		(1,377	)		(1,197	)		(1,201	)		(5,146	)		(1,524	)		(1,286	)		(1,159	)		(1,177	)

Adjusted EBITDA		4,137			990			1,089			1,049			1,009			3,853			951			1,010			969			923

Adjusted EBITDA margin		*43.1%*			*37.1%*			44.2%			46.7%			45.7%			42.8%			38.4%			44.0%			45.5%			44.0%

Capital expenditures		1,084			308			248			280			248			1,120			273			255			306			286

Capital intensity		*11.3%*			*11.6%*			10.1%			12.5%			11.2%			12.4%			11.0%			11.1%			14.4%			13.6%

Mobile phone subscribers

Gross subscriber activations		1,953,912			605,034			583,700			415,270			349,908			1,653,771			495,076			470,165			348,403			340,127

Postpaid		1,355,772			467,294			391,165			266,600			230,713			1,201,659			373,621			336,328			242,720			248,990

Prepaid		598,140			137,740			192,535			148,670			119,195			452,112			121,455			133,837			105,683			91,137

Net subscriber activations (losses)		489,901			122,621			224,343			110,761			32,176			294,842			109,726			136,464			46,247			2,405

Postpaid		439,842			154,617			167,798			83,197			34,230			301,706			109,527			114,821			44,433			32,925

Prepaid		50,059			(31,996	)		56,545			27,564			(2,054	)		(6,864	)		199			21,643			1,814			(30,520	)

Subscribers EOP		9,949,086			9,949,086			9,826,465			9,602,122			9,491,361			9,459,185			9,459,185			9,349,459			9,212,995			9,166,748

Postpaid		9,069,887			9,069,887			8,915,270			8,747,472			8,664,275			8,630,045			8,630,045			8,520,518			8,405,697			8,361,264

Prepaid		879,199			879,199			911,195			854,650			827,086			829,140			829,140			828,941			807,298			805,484

Blended ARPU ($/month)		59.30			58.88			60.76			59.54			57.98			57.66			58.61			59.47			57.36			55.17

Blended churn (%) (average per month)		1.27%			1.63%			1.24%			1.07%			1.12%			1.23%			1.37%			1.21%			1.10%			1.23%

Postpaid		0.92%			1.22%			0.90%			0.75%			0.79%			0.93%			1.08%			0.93%			0.83%			0.89%

Prepaid		4.85%			5.74%			4.58%			4.41%			4.61%			4.31%			4.42%			4.15%			3.98%			4.68%

Mobile connected device subscribers

Net subscriber activations (losses)		202,024			104,447			49,044			(344	)		48,877			193,641			38,998			33,035			47,449			74,159

Subscribers EOP		2,451,818			2,451,818			2,347,371			2,298,327			2,298,671			2,249,794			2,249,794			2,210,796			2,177,761			2,130,312

BCE Supplementary Financial Information - Fourth Quarter 2022 Page 7

Bell Wireline ^{(1) (2)}


(In millions of Canadian dollars, except where otherwise indicated) (unaudited)	Q4 2022			Q4 2021			% change		TOTAL 2022			TOTAL 2021			% change
Bell Wireline
Operating revenues
Data		2,006			1,986			1.0%		7,920			7,871			0.6%
Voice		736			779			(5.5%)		3,002			3,154			(4.8%)
Other services		77			75			2.7%		309			289			6.9%
External service revenues		2,819			2,840			(0.7%)		11,231			11,314			(0.7%)
Inter-segment service revenues		105			94			11.7%		412			358			15.1%
Operating service revenues		2,924			2,934			(0.3%)		11,643			11,672			(0.2%)
Data		157			132			18.9%		459			463			(0.9%)
Equipment and other		12			13			(7.7%)		45			43			4.7%
External product revenues		169			145			16.6%		504			506			(0.4%)
Inter-segment product revenues		1			-			n.m		1			-			n.m
Operating product revenues		170			145			17.2%		505			506			(0.2%)
Total external revenues		2,988			2,985			0.1%		11,735			11,820			(0.7%)
Total operating revenues		3,094			3,079			0.5%		12,148			12,178			(0.2%)
Operating costs		(1,776	)		(1,753	)		(1.3%)		(6,831	)		(6,863	)		0.5%
Adjusted EBITDA		1,318			1,326			(0.6%)		5,317			5,315			-
Adjusted EBITDA margin		*42.6%*			43.1%			(0.5) pts		*43.8%*			43.6%			0.2 pts

Capital expenditures		1,251			1,141			(9.6%)		3,887			3,612			(7.6%)

Capital intensity		40.4%			37.1%			(3.3) pts		*32.0%*			29.7%			(2.3) pts
Retail high-speed Internet subscribers⁽⁴⁾

Retail net subscriber activations		63,466			47,618			33.3%		201,762			152,285			32.5%

Retail subscribers EOP^(A) (B)		4,258,570			3,861,653			10.3%		4,258,570			3,861,653			10.3%
Retail TV subscribers⁽⁴⁾

Retail net subscriber activations (losses)		14,183			6,049			n.m.		5,148			2,530			n.m.

Internet protocol television (IPTV)		40,209			29,191			37.7%		94,400			76,068			24.1%

Satellite		(26,026	)		(23,142	)		(12.5%)		(89,252	)		(73,538	)		(21.4%)

Total retail subscribers EOP^{(A) (B)}		2,751,498			2,735,010			0.6%		2,751,498			2,735,010			0.6%

IPTV^{(A) (B)}		1,988,181			1,882,441			5.6%		1,988,181			1,882,441			5.6%

Satellite		763,317			852,569			(10.5%)		763,317			852,569			(10.5%)
Retail residential network access services (NAS)⁽⁴⁾

Retail residential NAS lines net losses		(37,878	)		(40,211	)		5.8%		(175,788	)		(185,327	)		5.1%

Retail residential NAS lines^{(A) (B)}		2,190,771			2,298,605			(4.7%)		2,190,771			2,298,605			(4.7%)

n.m. : not meaningful

^(A)	In Q1 2022, as a result of the acquisition of EBOX and other related companies, our retail high-speed Internet, retail IPTV and retail residential NAS lines subscriber bases increased by 67,090, 9,025 and 3,456 subscribers, respectively.

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

BCE Supplementary Financial Information - Fourth Quarter 2022 Page 8

Bell Wireline - Historical Trend ⁽²⁾


(In millions of Canadian dollars, except where otherwise indicated) (unaudited)	TOTAL 2022			Q4 22			Q3 22			Q2 22			Q1 22			TOTAL 2021			Q4 21			Q3 21			Q2 21			Q1 21
Bell Wireline
Operating revenues
Data		7,920			2,006			1,987			1,974			1,953			7,871			1,986			1,976			1,944			1,965
Voice		3,002			736			739			756			771			3,154			779			778			794			803
Other services		309			77			77			78			77			289			75			73			67			74
External service revenues		11,231			2,819			2,803			2,808			2,801			11,314			2,840			2,827			2,805			2,842
Inter-segment service revenues		412			105			104			101			102			358			94			93			86			85
Operating service revenues		11,643			2,924			2,907			2,909			2,903			11,672			2,934			2,920			2,891			2,927
Data		459			157			130			73			99			463			132			86			101			144
Equipment and other		45			12			9			13			11			43			13			9			11			10
External product revenues		504			169			139			86			110			506			145			95			112			154
Inter-segment product revenues		1			1			-			-			-			-			-			-			-			-
Operating product revenues		505			170			139			86			110			506			145			95			112			154
Total external revenues		11,735			2,988			2,942			2,894			2,911			11,820			2,985			2,922			2,917			2,996
Total operating revenues		12,148			3,094			3,046			2,995			3,013			12,178			3,079			3,015			3,003			3,081
Operating costs		(6,831	)		(1,776	)		(1,729	)		(1,680	)		(1,646	)		(6,863	)		(1,753	)		(1,682	)		(1,710	)		(1,718	)
Adjusted EBITDA		5,317			1,318			1,317			1,315			1,367			5,315			1,326			1,333			1,293			1,363
Adjusted EBITDA margin		*43.8%*			*42.6%*			43.2%			43.9%			45.4%			43.6%			43.1%			44.2%			43.1%			44.2%

Capital expenditures		3,887			1,251			1,038			910			688			3,612			1,141			884			880			707
Capital intensity		*32.0%*			*40.4%*			34.1%			30.4%			22.8%			29.7%			37.1%			29.3%			29.3%			22.9%
Retail high-speed Internet subscribers

Retail net subscriber activations		201,762			63,466			89,652			22,620			26,024			152,285			47,618			65,779			17,680			21,208

Retail subscribers EOP^{(A) (B)}		4,258,570			4,258,570			4,067,039			3,977,387			3,954,767			3,861,653			3,861,653			3,814,035			3,748,256			3,730,576

Retail TV subscribers

Retail net subscriber activations (losses)		5,148			14,183			10,853			(11,527	)		(8,361	)		2,530			6,049			10,521			(4,928	)		(9,112	)

IPTV		94,400			40,209			38,093			3,838			12,260			76,068			29,191			31,641			4,540			10,696

Satellite		(89,252	)		(26,026	)		(27,240	)		(15,365	)		(20,621	)		(73,538	)		(23,142	)		(21,120	)		(9,468	)		(19,808	)

Total retail subscribers EOP^{(A) (B)}		2,751,498			2,751,498			2,735,000			2,724,147			2,735,674			2,735,010			2,735,010			2,728,961			2,718,440			2,723,368

IPTV^{(A) (B)}		1,988,181			1,988,181			1,945,657			1,907,564			1,903,726			1,882,441			1,882,441			1,853,250			1,821,609			1,817,069

Satellite		763,317			763,317			789,343			816,583			831,948			852,569			852,569			875,711			896,831			906,299

Retail residential NAS

Retail residential NAS lines net losses		(175,788	)		(37,878	)		(42,853	)		(52,712	)		(42,345	)		(185,327	)		(40,211	)		(42,755	)		(51,292	)		(51,069	)

Retail residential NAS lines^{(A) (B)}		2,190,771			2,190,771			2,164,151			2,207,004			2,259,716			2,298,605			2,298,605			2,338,816			2,381,571			2,432,863

^(A)	In Q1 2022, as a result of the acquisition of EBOX and other related companies, our retail high-speed Internet, retail IPTV and retail residential NAS lines subscriber bases increased by 67,090, 9,025 and 3,456 subscribers, respectively.

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

BCE Supplementary Financial Information - Fourth Quarter 2022 Page 9

BCE

Net debt and other information ⁽²⁾


BCE - Net debt and preferred shares
(In millions of Canadian dollars, except where otherwise indicated) (unaudited)
											December 31 2022		September 30 2022		June 30 2022		March 31 2022		December 31 2021

Long-term debt												27,783		26,767		27,007		26,877		27,048
Debt due within one year												4,137		4,686		3,309		3,082		2,625
50% of preferred shares												1,935		1,943		1,943		1,943		2,002
Cash												(99)		(583)		(596)		(178)		(289)
Cash equivalents												(50)		(150)		-		-		-
Net debt ^(A)												33,706		32,663		31,663		31,724		31,386

Net debt leverage ratio ^(A)												3.30		3.20		3.12		3.16		3.17
Adjusted EBITDA /adjusted net interest expense ratio ^(A)												8.50		8.90		9.01		8.94		8.77



Cash flow information
(In millions of Canadian dollars, except where otherwise indicated) (unaudited)					Q4 2022		Q4 2021		$ change		% change		TOTAL 2022		TOTAL 2021		$ change		% change
Free cash flow (FCF) ^(A)
Cash flows from operating activities						2,056		1,743		313		18.0%		8,365		8,008		357		4.5%
Capital expenditures						(1,638)		(1,466)		(172)		(11.7%)		(5,133)		(4,852)		(281)		(5.8%)
Cash dividends paid on preferred shares						(42)		(32)		(10)		(31.3%)		(136)		(125)		(11)		(8.8%)
Cash dividends paid by subsidiaries to non-controlling interest						(3)		(45)		42		93.3%		(39)		(86)		47		54.7%
Acquisition and other costs paid						3		29		(26)		(89.7%)		10		35		(25)		(71.4%)
FCF						376		229		147		64.2%		3,067		2,980		87		2.9%



Cash flow information - Historical trend
(In millions of Canadian dollars, except where otherwise indicated) (unaudited)	TOTAL 2022		Q4 2022		Q3 2022		Q2 2022		Q1 2022		TOTAL 2021		Q4 2021		Q3 2021		Q2 2021		Q1 2021

FCF
Cash flows from operating activities		8,365		2,056		1,996		2,597		1,716		8,008		1,743		1,774		2,499		1,992
Capital expenditures		(5,133)		(1,638)		(1,317)		(1,219)		(959)		(4,852)		(1,466)		(1,164)		(1,210)		(1,012)
Cash dividends paid on preferred shares		(136)		(42)		(27)		(34)		(33)		(125)		(32)		(31)		(31)		(31)
Cash dividends paid by subsidiaries to non-controlling interest		(39)		(3)		(11)		(14)		(11)		(86)		(45)		(13)		(15)		(13)
Acquisition and other costs paid		10		3		1		3		3		35		29		-		2		4
FCF		3,067		376		642		1,333		716		2,980		229		566		1,245		940

^(A)

Net debt and free cash flow are non-GAAP financial measures and net debt leverage ratio and adjusted EBITDA to adjusted net interest expense ratio are capital management measures. Refer to note 3.1, Non-GAAP financial measures and note 3.4, Capital management measures in the Accompanying Notes to this report for more information on these measures.

BCE Supplementary Financial Information - Fourth Quarter 2022 Page 10

BCE

Consolidated Statements of Financial Position ⁽²⁾


(In millions of Canadian dollars, except where otherwise indicated) (unaudited)	December 31 2022		September 30 2022		June 30 2022		March 31 2022		December 31 2021
*ASSETS*
Current assets
Cash		99		583		596		178		289
Cash equivalents		50		150		-		-		-
Trade and other receivables		4,138		3,819		3,584		3,549		3,949
Inventory		656		627		565		567		482
Contract assets		436		383		373		386		414
Contract costs		540		613		594		564		507
Prepaid expenses		244		295		364		375		254
Other current assets		324		367		226		197		253
Assets held for sale		-		-		-		-		50
Total current assets		6,487		6,837		6,302		5,816		6,198
Non-current assets
Contract assets		288		247		237		247		251
Contract costs		603		431		366		365		387
Property, plant and equipment		29,256		28,473		28,157		28,108		28,235
Intangible assets		16,183		16,163		15,950		15,825		15,570
Deferred tax assets		84		98		107		108		105
Investments in associates and joint ventures		608		615		633		654		668
Post-employment benefit assets		3,559		3,678		4,247		4,110		3,472
Other non-current assets		1,355		1,318		1,307		1,378		1,306
Goodwill		10,906		10,700		10,724		10,724		10,572
Total non-current assets		62,842		61,723		61,728		61,519		60,566
Total assets		69,329		68,560		68,030		67,335		66,764
*LIABILITIES*
Current liabilities
Trade payables and other liabilities		5,221		4,602		4,248		3,841		4,455
Contract liabilities		857		801		785		838		799
Interest payable		281		194		253		162		247
Dividends payable		867		867		855		854		811
Current tax liabilities		106		263		299		189		141
Debt due within one year		4,137		4,686		3,309		3,082		2,625
Liabilities held for sale		-		-		-		-		35
Total current liabilities		11,469		11,413		9,749		8,966		9,113
Non-current liabilities
Contract liabilities		228		227		239		244		246
Long-term debt		27,783		26,767		27,007		26,877		27,048
Deferred tax liabilities		4,953		4,915		5,120		5,065		4,679
Post-employment benefit obligations		1,311		1,293		1,266		1,464		1,734
Other non-current liabilities		1,070		964		884		934		1,003
Total non-current liabilities		35,345		34,166		34,516		34,584		34,710
Total liabilities		46,814		45,579		44,265		43,550		43,823

*EQUITY*
Equity attributable to BCE shareholders
Preferred shares		3,870		3,885		3,885		3,885		4,003
Common shares		20,840		20,838		20,837		20,830		20,662
Contributed surplus		1,172		1,162		1,151		1,137		1,157
Accumulated other comprehensive (loss) income		(55)		10		273		355		213
Deficit		(3,649)		(3,254)		(2,709)		(2,740)		(3,400)
Total equity attributable to BCE shareholders		22,178		22,641		23,437		23,467		22,635
Non-controlling interest		337		340		328		318		306
Total equity		22,515		22,981		23,765		23,785		22,941
Total liabilities and equity		69,329		68,560		68,030		67,335		66,764
Number of common shares outstanding (millions)		912.0		911.9		911.9		911.8		909.0

BCE Supplementary Financial Information - Fourth Quarter 2022 Page 11

BCE

Consolidated Cash Flow Data ⁽²⁾


(In millions of Canadian dollars, except where otherwise indicated) (unaudited)	Q4 2022		Q4 2021		$ change		TOTAL 2022		TOTAL 2021		$ change

Net earnings		567		658		(91)		2,926		2,892		34
Adjustments to reconcile net earnings to cash flows from operating activities
Severance, acquisition and other costs		19		63		(44)		94		209		(115)
Depreciation and amortization		1,192		1,176		16		4,723		4,609		114
Post-employment benefit plans cost		47		69		(22)		198		286		(88)
Net interest expense		319		269		50		1,124		1,063		61
Impairment of assets		150		30		120		279		197		82
Losses (gains) on investments		29		6		23		(24)		6		(30)
Income taxes		222		249		(27)		967		1,044		(77)
Contributions to post-employment benefit plans		(12)		(69)		57		(140)		(282)		142
Payments under other post-employment benefit plans		(17)		(18)		1		(64)		(65)		1
Severance and other costs paid		(27)		(55)		28		(129)		(208)		79
Interest paid		(243)		(192)		(51)		(1,197)		(1,080)		(117)
Income taxes paid (net of refunds)		(340)		(302)		(38)		(749)		(913)		164
Acquisition and other costs paid		(3)		(29)		26		(10)		(35)		25
Change in contract assets		(94)		(21)		(73)		(59)		278		(337)
Change in wireless device financing plan receivables		(99)		(121)		22		22		(365)		387
Net change in operating assets and liabilities		346		30		316		404		372		32
Cash flows from operating activities		2,056		1,743		313		8,365		8,008		357
Capital expenditures		(1,638)		(1,466)		(172)		(5,133)		(4,852)		(281)
Cash dividends paid on preferred shares		(42)		(32)		(10)		(136)		(125)		(11)
Cash dividends paid by subsidiaries to non-controlling interest		(3)		(45)		42		(39)		(86)		47
Acquisition and other costs paid		3		29		(26)		10		35		(25)
Free cash flow		376		229		147		3,067		2,980		87
Business acquisitions		(287)		-		(287)		(429)		(12)		(417)
Business dispositions		(1)		-		(1)		52		-		52
Acquisition and other costs paid		(3)		(29)		26		(10)		(35)		25
Spectrum licences		-		(1,664)		1,664		(3)		(2,082)		2,079
Other investing activities		(13)		(23)		10		(4)		(72)		68
(Decrease) increase in notes payable		(511)		719		(1,230)		111		351		(240)
(Decrease) increase in securitized receivables		-		(130)		130		700		(150)		850
Issue of long-term debt		1,006		-		1,006		1,951		4,985		(3,034)
Repayment of long-term debt		(250)		(235)		(15)		(2,023)		(2,751)		728
Issue of common shares		2		16		(14)		171		261		(90)
Purchase of shares for settlement of share-based payments		(49)		(52)		3		(255)		(297)		42
Repurchase of preferred shares		(10)		-		(10)		(125)		-		(125)
Cash dividends paid on common shares		(839)		(795)		(44)		(3,312)		(3,132)		(180)
Other financing activities		(5)		(3)		(2)		(31)		19		(50)
		(960)		(2,196)		1,236		(3,207)		(2,915)		(292)
Net (decrease) increase in cash		(484)		(1,886)		1,402		(190)		65		(255)
Cash at beginning of period		583		2,175		(1,592)		289		224		65
Cash at end of period		99		289		(190)		99		289		(190)
Net (decrease) increase in cash equivalents		(100)		(81)		(19)		50		-		50
Cash equivalents at beginning of period		150		81		69		-		-		-
Cash equivalents at end of period		50		-		50		50		-		50

BCE Supplementary Financial Information - Fourth Quarter 2022 Page 12

BCE

Consolidated Cash Flow Data - Historical Trend ⁽²⁾


(In millions of Canadian dollars, except where otherwise indicated) (unaudited)	TOTAL 2022			Q4 22			Q3 22			Q2 22			Q1 22			TOTAL 2021			Q4 21			Q3 21			Q2 21			Q1 21

Net earnings		2,926			567			771			654			934			2,892			658			813			734			687
Adjustments to reconcile net earnings to cash flows from operating activities
Severance, acquisition and other costs		94			19			22			40			13			209			63			50			7			89
Depreciation and amortization		4,723			1,192			1,181			1,199			1,151			4,609			1,176			1,147			1,153			1,133
Post-employment benefit plans cost		198			47			48			52			51			286			69			70			68			79
Net interest expense		1,124			319			282			265			258			1,063			269			268			263			263
Impairment of assets		279			150			21			106			2			197			30			-			164			3
(Gains) losses on investments		(24	)		29			-			(16	)		(37	)		6			6			-			-			-
Income taxes		967			222			178			232			335			1,044			249			306			236			253
Contributions to post-employment benefit plans		(140	)		(12	)		(14	)		(35	)		(79	)		(282	)		(69	)		(64	)		(70	)		(79	)
Payments under other post-employment benefit plans		(64	)		(17	)		(17	)		(15	)		(15	)		(65	)		(18	)		(16	)		(16	)		(15	)
Severance and other costs paid		(129	)		(27	)		(44	)		(30	)		(28	)		(208	)		(55	)		(31	)		(79	)		(43	)
Interest paid		(1,197	)		(243	)		(385	)		(196	)		(373	)		(1,080	)		(192	)		(352	)		(230	)		(306	)
Income taxes paid (net of refunds)		(749	)		(340	)		(150	)		(143	)		(116	)		(913	)		(302	)		(407	)		(95	)		(109	)
Acquisition and other costs paid		(10	)		(3	)		(1	)		(3	)		(3	)		(35	)		(29	)		-			(2	)		(4	)
Change in contract assets		(59	)		(94	)		(20	)		23			32			278			(21	)		53			102			144
Change in wireless device financing plan receivables		22			(99	)		(6	)		68			59			(365	)		(121	)		(92	)		(61	)		(91	)
Net change in operating assets and liabilities		404			346			130			396			(468	)		372			30			29			325			(12	)
Cash flows from operating activities		8,365			2,056			1,996			2,597			1,716			8,008			1,743			1,774			2,499			1,992
Capital expenditures		(5,133	)		(1,638	)		(1,317	)		(1,219	)		(959	)		(4,852	)		(1,466	)		(1,164	)		(1,210	)		(1,012	)
Cash dividends paid on preferred shares		(136	)		(42	)		(27	)		(34	)		(33	)		(125	)		(32	)		(31	)		(31	)		(31	)
Cash dividends paid by subsidiaries to non-controlling interest		(39	)		(3	)		(11	)		(14	)		(11	)		(86	)		(45	)		(13	)		(15	)		(13	)
Acquisition and other costs paid		10			3			1			3			3			35			29			-			2			4
Free cash flow		3,067			376			642			1,333			716			2,980			229			566			1,245			940
Business acquisitions		(429	)		(287	)		(3	)		-			(139	)		(12	)		-			(1	)		(11	)		-
Business dispositions		52			(1	)		(1	)		2			52			-			-			-			-			-
Acquisition and other costs paid		(10	)		(3	)		(1	)		(3	)		(3	)		(35	)		(29	)		-			(2	)		(4	)
Spectrum licences		(3	)		-			(3	)		-			-			(2,082	)		(1,664	)		(418	)		-			-
Other investing activities		(4	)		(13	)		(8	)		27			(10	)		(72	)		(23	)		(11	)		(17	)		(21	)
Increase (decrease) in notes payable		111			(511	)		(34	)		187			469			351			719			(322	)		311			(357	)
Increase (decrease) in securitized receivables		700			-			700			-			-			(150	)		(130	)		(7	)		-			(13	)
Issue of long-term debt		1,951			1,006			-			-			945			4,985			-			1,570			500			2,915
Repayment of long-term debt		(2,023	)		(250	)		(270	)		(245	)		(1,258	)		(2,751	)		(235	)		(249	)		(2,041	)		(226	)
Issue of common shares		171			2			1			7			161			261			16			172			63			10
Purchase of shares for settlement of share-based payments		(255	)		(49	)		(49	)		(51	)		(106	)		(297	)		(52	)		(83	)		(71	)		(91	)
Repurchase of preferred shares		(125	)		(10	)		-			-			(115	)		-			-			-			-			-
Cash dividends paid on common shares		(3,312	)		(839	)		(839	)		(839	)		(795	)		(3,132	)		(795	)		(793	)		(791	)		(753	)
Other financing activities		(31	)		(5	)		2			-			(28	)		19			(3	)		(14	)		(44	)		80
		(3,207	)		(960	)		(505	)		(915	)		(827	)		(2,915	)		(2,196	)		(156	)		(2,103	)		1,540
Net (decrease) increase in cash		(190	)		(484	)		(13	)		418			(111	)		65			(1,886	)		329			(158	)		1,780
Cash at beginning of period		289			583			596			178			289			224			2,175			1,846			2,004			224
Cash at end of period		99			99			583			596			178			289			289			2,175			1,846			2,004
Net increase (decrease) in cash equivalents		50			(100	)		150			-			-			-			(81	)		81			(700	)		700
Cash equivalents at beginning of period		-			150			-			-			-			-			81			-			700			-
Cash equivalents at end of period		50			50			150			-			-			-			-			81			-			700

BCE Supplementary Financial Information - Fourth Quarter 2022 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. Refer to appendix A for a description of segment reporting changes to be implemented effective Q1 2023.

Throughout this report, we, us, our, BCE and the company mean, as the context may require, either BCE Inc. or, collectively, BCE Inc., Bell Canada, their subsidiaries, joint arrangements and associates. Bell means, as the context may require, either Bell Canada or, collectively, Bell Canada, its subsidiaries, joint arrangements and associates.

(2)

In April 2022, the International Financial Reporting Interpretations Committee (IFRIC) issued an agenda decision clarifying that an entity should present a demand deposit with restrictions on use arising from a contract with a third party as cash and cash equivalents in the statements of financial position and cash flows, unless those restrictions change the nature of the deposit such that it no longer meets the definition of cash in IAS 7.

In Q2 2022, we applied this agenda decision retrospectively, to each prior period presented, the impact of which was limited to the classification of funding of $97 million received in Q1 2021 under a subsidy agreement with the Government of Québec. For further details, see Note 2, Basis of presentation and significant accounting policies in the Q3 2022 consolidated interim financial statements.

(3)	Non-GAAP and other financial measures

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

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

●

Non-GAAP financial measures;

●

Non-GAAP ratios;

●

Total of segments measures;

●

Capital management measures; and

●

Supplementary financial measures.

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

(3.1)

Non-GAAP financial measures

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

BCE Supplementary Financial Information – Fourth Quarter 2022 Page 14

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

Adjusted net earnings

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

We define adjusted net earnings as net earnings attributable to common shareholders before severance, acquisition and other costs, net mark-to-market losses (gains) on derivatives used to economically hedge equity settled share-based compensation plans, net equity losses (gains) on investments in associates and joint ventures, net losses (gains) on investments, early debt redemption costs, impairment of assets and discontinued operations, net of tax and NCI.

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

The most directly comparable IFRS financial measure is net earnings attributable to common shareholders. Refer to pages 2 and 3 of this report for a reconciliation of net earnings attributable to common shareholders to adjusted net earnings on a consolidated basis.

Adjusted net interest expense

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

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

We use adjusted net interest expense as a component in the calculation of the adjusted EBITDA to adjusted net interest expense ratio, which is a capital management measure. For further details on the adjusted EBITDA to adjusted net interest expense ratio, see note 3.4, Capital management measures below. We use and believe that certain investors and analysts use the adjusted EBITDA to adjusted net interest expense ratio, among other measures, to evaluate the financial health of the company.

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


	Q4 2022	Q4 2021

Net interest expense	1,124	1,063

50% of net earnings attributable to preferred shareholders	76	66

Adjusted net interest expense	1,200	1,129

BCE Supplementary Financial Information – Fourth Quarter 2022 Page 15


	Q3 2022

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

Net interest expense (year ended December 31, 2021)	1,063

Net interest expense (nine months ended September 30, 2021)	(794	)

12-month trailing net interest expense (ended September 30, 2022)	1,074

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

50% of net earnings attributable to preferred shareholders (year ended December 31, 2021)	66

50% of net earnings attributable to preferred shareholders (nine months ended September 30, 2021)	(49	)

50% of 12-month trailing net earnings attributable to preferred shareholders (ended September 30, 2022)	71

Adjusted net interest expense for the twelve months ended September 30, 2022	1,145


	Q2 2022

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

Net interest expense (year ended December 31, 2021)	1,063

Net interest expense (six months ended June 30, 2021)	(526	)

12-month trailing net interest expense (ended June 30, 2022)	1,060

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

50% of net earnings attributable to preferred shareholders (year ended December 31, 2021)	66

50% of net earnings attributable to preferred shareholders (six months ended June 30, 2021)	(32	)

50% of 12-month trailing net earnings attributable to preferred shareholders (ended June 30, 2022)	69

Adjusted net interest expense for the twelve months ended June 30, 2022	1,129


	Q1 2022

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

Net interest expense (year ended December 31, 2021)	1,063

Net interest expense (three months ended March 31, 2021)	(263	)

12-month trailing net interest expense (ended March 31, 2022)	1,058

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

50% of net earnings attributable to preferred shareholders (year ended December 31, 2021)	66

50% of net earnings attributable to preferred shareholders (three months ended March 31, 2021)	(16	)

50% of 12-month trailing net earnings attributable to preferred shareholders (ended March 31, 2022)	67

Adjusted net interest expense for the twelve months ended March 31, 2022	1,125

BCE Supplementary Financial Information – Fourth Quarter 2022 Page 16

Free cash flow

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

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

We consider free cash flow to be an important indicator of the financial strength and performance of our businesses. Free cash flow shows how much cash is available to pay dividends on common shares, repay debt and reinvest in our company. We believe that certain investors and analysts use free cash flow to value a business and its underlying assets and to evaluate the financial strength and performance of our businesses. The most directly comparable IFRS financial measure is cash flows from operating activities. Refer to pages 10, 12 and 13 of this report for a reconciliation of cash flows from operating activities to free cash flow on a consolidated basis.

Net debt

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

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

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

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

(3.2)

Non-GAAP ratios

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

Adjusted EPS

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

We define adjusted EPS as adjusted net earnings per BCE common share. Adjusted net earnings is a non-GAAP financial measure. For further details on adjusted net earnings, see note 3.1 – Non-GAAP financial measures above.

BCE Supplementary Financial Information – Fourth Quarter 2022 Page 17

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

(3.3)

Total of segments measures

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

Adjusted EBITDA

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

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



	Total 2022		Q4 2022		Q3 2022		Q2 2022		Q1 2022

Net earnings		2,926		567		771		654		934

Severance, acquisition and other costs		94		19		22		40		13

Depreciation		3,660		922		914		933		891

Amortization		1,063		270		267		266		260

Finance costs

Interest expense		1,146		319		298		269		260

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

Impairment of assets		279		150		21		106		2

Other expense (income)		115		(19)		130		97		(93)

Income taxes		967		222		178		232		335

Adjusted EBITDA		10,199		2,437		2,588		2,590		2,584

BCE Supplementary Financial Information – Fourth Quarter 2022 Page 18



	Total 2021		Q4 2021		Q3 2021		Q2 2021		Q1 2021

Net earnings		2,892		658		813		734		687

Severance, acquisition and other costs		209		63		50		7		89

Depreciation		3,627		925		902		905		895

Amortization		982		251		245		248		238

Finance costs

Interest expense		1,082		275		272		268		267

Net interest on post-employment benefit plans		20		5		5		5		5

Impairment of assets		197		30		-		164		3

Other income		(160)		(26)		(35)		(91)		(8)

Income taxes		1,044		249		306		236		253

Adjusted EBITDA		9,893		2,430		2,558		2,476		2,429

(3.4)

Capital management measures

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

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

Adjusted EBITDA to adjusted net interest expense ratio

The adjusted EBITDA to adjusted net interest expense ratio represents adjusted EBITDA divided by adjusted net interest expense. For the purposes of calculating our adjusted EBITDA to adjusted net interest expense ratio, adjusted EBITDA is twelve-month trailing adjusted EBITDA. Adjusted net interest expense used in the calculation of the adjusted EBITDA to adjusted net interest expense ratio is a non-GAAP financial measure defined as twelve-month trailing net interest expense as shown in our consolidated statements of cash flows, plus 50% of twelve-month trailing net earnings attributable to preferred shareholders as shown in our consolidated income statements. For further details on adjusted net interest expense, see note 3.1, Non-GAAP financial measures above.

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

BCE Supplementary Financial Information – Fourth Quarter 2022 Page 19

Net debt leverage ratio

The net debt leverage ratio represents net debt divided by adjusted EBITDA. Net debt used in the calculation of the net debt leverage ratio is a non-GAAP financial measure. For further details on net debt, see note 3.1, Non-GAAP financial measures above. For the purposes of calculating our net debt leverage ratio, adjusted EBITDA is twelve-month trailing adjusted EBITDA.

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

(3.5)

Supplementary financial measures

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

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

(4)	Key performance indicators (KPIs)

In addition to the non-GAAP financial measures and other financial measures described previously, we use the following KPIs to measure the success of our strategic imperatives. These KPIs are not accounting measures and may not be comparable to similar measures presented by other issuers.

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

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

Mobile phone blended ARPU is calculated by dividing wireless operating service revenues by the average mobile phone subscriber base for the specified period and is expressed as a dollar unit per month.

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

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

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

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

●

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

●

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

BCE Supplementary Financial Information – Fourth Quarter 2022 Page 20




Q4		Appendix A: Restated Segmented Data (Historical Trend) for Q1 2023 Segment Reporting Changes

Segment reporting changes in 2023

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

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

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

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

Appendix A provides restated results for Q1 2021 to Q4 2022 reflecting the segment reporting changes to be implemented effective Q1 2023.

BCE Supplementary Financial Information – Fourth Quarter 2022 Page 22

BCE

Restated - Segmented Data - Historical Trend


(In millions of Canadian dollars, except where otherwise indicated) (unaudited)	TOTAL 2022		Q4 22		Q3 22		Q2 22		Q1 22		TOTAL 2021		Q4 21		Q3 21		Q2 21		Q1 21



Operating revenues

Bell CTS^(A)		21,301		5,649		5,401		5,135		5,116		20,797		5,454		5,213		5,039		5,091

Bell Media		3,254		889		719		821		825		3,036		849		719		755		713

Inter-segment eliminations^(A)		(381)		(99)		(96)		(95)		(91)		(384)		(94)		(96)		(96)		(98)

Total		24,174		6,439		6,024		5,861		5,850		23,449		6,209		5,836		5,698		5,706



Operating costs

Bell CTS^(A)		(11,847)		(3,341)		(2,995)		(2,771)		(2,740)		(11,629)		(3,177)		(2,870)		(2,777)		(2,805)

Bell Media		(2,509)		(760)		(537)		(595)		(617)		(2,311)		(696)		(504)		(541)		(570)

Inter-segment eliminations^(A)		381		99		96		95		91		384		94		96		96		98

Total		(13,975)		(4,002)		(3,436)		(3,271)		(3,266)		(13,556)		(3,779)		(3,278)		(3,222)		(3,277)



Adjusted EBITDA

Bell CTS^(A)		9,454		2,308		2,406		2,364		2,376		9,168		2,277		2,343		2,262		2,286

Margin ^(A)		*44.4%*		*40.9%*		44.5%		46.0%		46.4%		44.1%		41.7%		44.9%		44.9%		44.9%

Bell Media		745		129		182		226		208		725		153		215		214		143

Margin		*22.9%*		*14.5%*		25.3%		27.5%		25.2%		23.9%		18.0%		29.9%		28.3%		20.1%

Total		10,199		2,437		2,588		2,590		2,584		9,893		2,430		2,558		2,476		2,429

Margin		*42.2%*		*37.8%*		43.0%		44.2%		44.2%		42.2%		39.1%		43.8%		43.5%		42.6%



Capital expenditures

Bell CTS		4,971		1,559		1,286		1,190		936		4,732		1,414		1,139		1,186		993

Capital intensity ^(A)		*23.3%*		*27.6%*		23.8%		23.2%		18.3%		22.8%		25.9%		21.8%		23.5%		19.5%

Bell Media		162		79		31		29		23		120		52		25		24		19

Capital intensity		*5.0%*		*8.9%*		4.3%		3.5%		2.8%		4.0%		6.1%		3.5%		3.2%		2.7%

Total		5,133		1,638		1,317		1,219		959		4,852		1,466		1,164		1,210		1,012

Capital intensity		*21.2%*		*25.4%*		21.9%		20.8%		16.4%		20.7%		23.6%		19.9%		21.2%		17.7%

^(A)

Bell CTS operating revenues, operating revenues inter-segment eliminations, Bell CTS operating costs, operating costs inter-segment eliminations and Bell CTS adjusted EBITDA are non-GAAP financial measures and Bell CTS adjusted EBITDA margin and Bell CTS capital intensity are non-GAAP ratios. Refer to note 1, Non-GAAP financial measures and note 2, Non-GAAP ratios in the Non-GAAP and other financal measures section of this appendix for more information on these measures.

BCE Supplementary Financial Information - Fourth Quarter 2022 Page 23

Non-GAAP and other financial measures

(1)	Non-GAAP financial measures

Below are descriptions of the non-GAAP financial measures that we use in this appendix to present restated results reflecting the segment reporting changes to be implemented effective Q1 2023.

Bell CTS operating revenues

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

We define Bell CTS operating revenues as BCE consolidated operating revenues, less Bell Media operating revenues, plus total inter-segment revenues, and less inter-segment revenues between Bell Wireless and Bell Wireline.

We have disclosed Bell CTS operating revenues for the periods from Q1 2021 to Q4 2022 because we believe this information may be useful to analysts and investors for the purpose of financial modelling and analysis of trends in business performance as a result of the segment reporting changes which will be implemented effective Q1 2023.

Effective Q1 2023, Bell CTS operating revenues will be presented in the Segmented Information note disclosed in our consolidated financial statements and therefore will no longer be classified as a non-GAAP financial measure.

The most directly comparable IFRS financial measure is BCE consolidated operating revenues. The following tables provide reconciliations of BCE consolidated operating revenues to Bell CTS operating revenues.



	Total 2022		Q4 2022		Q3 2022		Q2 2022		Q1 2022

BCE consolidated operating revenues		24,174		6,439		6,024		5,861		5,850

Less: Bell Media operating revenues		(3,254)		(889)		(719)		(821)		(825)

Plus: Total inter-segment revenues		816		210		207		201		198

Less: Inter-segment revenues between Bell Wireless and Bell Wireline ⁽¹⁾		(435)		(111)		(111)		(106)		(107)

Bell CTS operating revenues		21,301		5,649		5,401		5,135		5,116


	Total 2021		Q4 2021		Q3 2021		Q2 2021		Q1 2021

BCE consolidated operating revenues		23,449		6,209		5,836		5,698		5,706

Less: Bell Media operating revenues		(3,036)		(849)		(719)		(755)		(713)

Plus: Total inter-segment revenues		764		194		194		188		188

Less: Inter-segment revenues between Bell Wireless and Bell Wireline ⁽¹⁾		(380)		(100)		(98)		(92)		(90)

Bell CTS operating revenues		20,797		5,454		5,213		5,039		5,091

(1)

Represents inter-segment revenues between Bell Wireless and Bell Wireline which are eliminated as Bell Wireless and Bell Wireline are being combined to form one single segment called Bell CTS. Inter-segment revenues between Bell Wireless and Bell Wireline are a component of total BCE inter-segment revenues.

BCE Supplementary Financial Information – Fourth Quarter 2022 Page 24

Operating revenues inter-segment eliminations

The term operating revenues inter-segment eliminations does not have any standardized meaning under IFRS. Therefore, it is unlikely to be comparable to similar measures presented by other issuers.

We define operating revenues inter-segment eliminations as BCE consolidated operating revenues, less Bell Wireless operating revenues, less Bell Wireline operating revenues, less Bell Media operating revenues and plus inter-segment revenues between Bell Wireless and Bell Wireline.

We have disclosed operating revenues inter-segment eliminations for the periods from Q1 2021 to Q4 2022 because we believe this information may be useful to analysts and investors for the purpose of financial modelling and analysis of trends in business performance as a result of the segment reporting changes which will be implemented effective Q1 2023.

Effective Q1 2023, operating revenues inter-segment eliminations will be presented in the Segmented Information note disclosed in our consolidated financial statements and therefore will no longer be classified as a non-GAAP financial measure.



	Total 2022		Q4 2022		Q3 2022		Q2 2022		Q1 2022

BCE consolidated operating revenues		24,174		6,439		6,024		5,861		5,850

Less: Bell Wireless operating revenues		(9,588)		(2,666)		(2,466)		(2,246)		(2,210)

Less: Bell Wireline operating revenues		(12,148)		(3,094)		(3,046)		(2,995)		(3,013)

Less: Bell Media operating revenues		(3,254)		(889)		(719)		(821)		(825)

Plus: Inter-segment revenues between Bell Wireless and Bell Wireline ⁽¹⁾		435		111		111		106		107

Operating revenues inter-segment eliminations		(381)		(99)		(96)		(95)		(91)


	Total 2021		Q4 2021		Q3 2021		Q2 2021		Q1 2021

BCE consolidated operating revenues		23,449		6,209		5,836		5,698		5,706

Less: Bell Wireless operating revenues		(8,999)		(2,475)		(2,296)		(2,128)		(2,100)

Less: Bell Wireline operating revenues		(12,178)		(3,079)		(3,015)		(3,003)		(3,081)

Less: Bell Media operating revenues		(3,036)		(849)		(719)		(755)		(713)

Plus: Inter-segment revenues between Bell Wireless and Bell Wireline⁽¹⁾		380		100		98		92		90

Operating revenues inter-segment eliminations		(384)		(94)		(96)		(96)		(98)

(1)

BCE Supplementary Financial Information – Fourth Quarter 2022 Page 25

Bell CTS operating costs

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

We define Bell CTS operating costs as BCE consolidated operating costs, less Bell Media operating costs, plus total operating costs inter-segment eliminations, and less operating costs inter-segment eliminations between Bell Wireless and Bell Wireline.

We have disclosed Bell CTS operating costs for the periods from Q1 2021 to Q4 2022 because we believe this information may be useful to analysts and investors for the purpose of financial modelling and analysis of trends in business performance as a result of the segment reporting changes which will be implemented effective Q1 2023.

Effective Q1 2023, Bell CTS operating costs will be presented in the Segmented Information note disclosed in our consolidated financial statements and therefore will no longer be classified as a non-GAAP financial measure.

The most directly comparable IFRS financial measure is BCE consolidated operating costs. The following tables provide reconciliations of BCE consolidated operating costs to Bell CTS operating costs.



	Total 2022		Q4 2022		Q3 2022		Q2 2022		Q1 2022

BCE consolidated operating costs		(13,975)		(4,002)		(3,436)		(3,271)		(3,266)

Less: Bell Media operating costs		2,509		760		537		595		617

Plus: Total operating costs inter-segment eliminations		(816)		(210)		(207)		(201)		(198)

Less: Operating costs inter-segment eliminations between Bell Wireless and Bell Wireline ⁽¹⁾		435		111		111		106		107

Bell CTS operating costs		(11,847)		(3,341)		(2,995)		(2,771)		(2,740)



	Total 2021		Q4 2021		Q3 2021		Q2 2021		Q1 2021

BCE consolidated operating costs		(13,556)		(3,779)		(3,278)		(3,222)		(3,277)

Less: Bell Media operating costs		2,311		696		504		541		570

Plus: Total operating costs inter-segment eliminations		(764)		(194)		(194)		(188)		(188)

Less: Operating costs inter-segment eliminations between Bell Wireless and Bell Wireline⁽¹⁾		380		100		98		92		90

Bell CTS operating costs		(11,629)		(3,177)		(2,870)		(2,777)		(2,805)

(1)

Represents inter-segment operating costs between Bell Wireless and Bell Wireline which are eliminated as Bell Wireless and Bell Wireline are being combined to form one single segment called Bell CTS. Inter-segment operating costs between Bell Wireless and Bell Wireline are a component of total BCE operating costs inter-segment eliminations.

Operating costs inter-segment eliminations

The term operating costs inter-segment eliminations does not have any standardized meaning under IFRS. Therefore, it is unlikely to be comparable to similar measures presented by other issuers.

We define operating costs inter-segment eliminations as BCE consolidated operating costs, less Bell Wireless operating costs, less Bell Wireline operating costs, less Bell Media operating costs and plus operating costs inter-segment eliminations between Bell Wireless and Bell Wireline.

BCE Supplementary Financial Information – Fourth Quarter 2022 Page 26

We have disclosed operating costs inter-segment eliminations for the periods from Q1 2021 to Q4 2022 because we believe this information may be useful to analysts and investors for the purpose of financial modelling and analysis of trends in business performance as a result of the segment reporting changes which will be implemented effective Q1 2023.

Effective Q1 2023, operating costs inter-segment eliminations will be presented in the Segmented Information note disclosed in our consolidated financial statements and therefore will no longer be classified as a non-GAAP financial measure.

The most directly comparable IFRS financial measure is BCE consolidated operating costs. The following tables provide reconciliations of BCE consolidated operating costs to operating costs inter-segment eliminations.



	Total 2022		Q4 2022		Q3 2022		Q2 2022		Q1 2022

BCE consolidated operating costs		(13,975)		(4,002)		(3,436)		(3,271)		(3,266)

Less: Bell Wireless operating costs		5,451		1,676		1,377		1,197		1,201

Less: Bell Wireline operating costs		6,831		1,776		1,729		1,680		1,646

Less: Bell Media operating costs		2,509		760		537		595		617

Plus: Operating costs inter-segment eliminations between Bell Wireless and Bell Wireline⁽¹⁾		(435)		(111)		(111)		(106)		(107)

Operating costs inter-segment eliminations		381		99		96		95		91


	Total 2021		Q4 2021		Q3 2021		Q2 2021		Q1 2021

BCE consolidated operating costs		(13,556)		(3,779)		(3,278)		(3,222)		(3,277)

Less: Bell Wireless operating costs		5,146		1,524		1,286		1,159		1,177

Less: Bell Wireline operating costs		6,863		1,753		1,682		1,710		1,718

Less: Bell Media operating costs		2,311		696		504		541		570

Plus: Operating costs inter-segment eliminations between Bell Wireless and Bell Wireline⁽¹⁾		(380)		(100)		(98)		(92)		(90)

Operating costs inter-segment eliminations		384		94		96		96		98

(1)

Bell CTS adjusted EBITDA

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

We define Bell CTS adjusted EBITDA as BCE consolidated operating revenues, less BCE consolidated operating costs as shown in BCE’s consolidated income statements, less Bell Media operating revenues and less Bell Media operating costs.

We have disclosed Bell CTS adjusted EBITDA for the periods from Q1 2021 to Q4 2022 because we believe this information may be useful to analysts and investors for the purpose of financial modelling and analysis of trends in business performance as a result of the segment reporting changes which will be implemented effective Q1 2023.

BCE Supplementary Financial Information – Fourth Quarter 2022 Page 27

Effective Q1 2023, Bell CTS adjusted EBITDA will be presented in the Segmented Information note disclosed in our consolidated financial statements and therefore will no longer be classified as a non-GAAP financial measure.

The most directly comparable IFRS financial measure is net earnings. The following tables provide reconciliations of net earnings to Bell CTS adjusted EBITDA.



	Total 2022		Q4 2022		Q3 2022		Q2 2022		Q1 2022

Net earnings		2,926		567		771		654		934

Severance, acquisition and other costs		94		19		22		40		13

Depreciation		3,660		922		914		933		891

Amortization		1,063		270		267		266		260

Finance costs

Interest expense		1,146		319		298		269		260

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

Impairment of assets		279		150		21		106		2

Other expense (income)		115		(19)		130		97		(93)

Income taxes		967		222		178		232		335

Bell Media operating revenues		(3,254)		(889)		(719)		(821)		(825)

Bell Media operating costs		2,509		760		537		595		617

Bell CTS adjusted EBITDA		9,454		2,308		2,406		2,364		2,376


	Total 2021		Q4 2021		Q3 2021		Q2 2021		Q1 2021

Net earnings		2,892		658		813		734		687

Severance, acquisition and other costs		209		63		50		7		89

Depreciation		3,627		925		902		905		895

Amortization		982		251		245		248		238

Finance costs

Interest expense		1,082		275		272		268		267

Net interest on post-employment benefit plans		20		5		5		5		5

Impairment of assets		197		30		-		164		3

Other income		(160)		(26)		(35)		(91)		(8)

Income taxes		1,044		249		306		236		253

Bell Media operating revenues		(3,036)		(849)		(719)		(755)		(713)

Bell Media operating costs		2,311		696		504		541		570

Bell CTS adjusted EBITDA		9,168		2,277		2,343		2,262		2,286

BCE Supplementary Financial Information – Fourth Quarter 2022 Page 28

(2)	Non-GAAP ratios

Bell CTS adjusted EBITDA margin

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

We define Bell CTS adjusted EBITDA margin as Bell CTS adjusted EBITDA divided by Bell CTS operating revenues. Bell CTS adjusted EBITDA and Bell CTS operating revenues are non-GAAP financial measures. For further details on these measures, see note 1, Non-GAAP financial measures above.

We have disclosed Bell CTS adjusted EBITDA margin for the periods from Q1 2021 to Q4 2022 because we believe this information may be useful to analysts and investors for the purpose of financial modelling and analysis of trends in business performance as a result of the segment reporting changes which will be implemented effective Q1 2023.

Effective Q1 2023, Bell CTS adjusted EBITDA and Bell CTS operating revenues will be presented in the Segmented Information note disclosed in our consolidated financial statements and therefore Bell CTS adjusted EBITDA margin will no longer be classified as a non-GAAP ratio.

Bell CTS capital intensity

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

We define Bell CTS capital intensity as Bell CTS capital expenditures divided by Bell CTS operating revenues. Bell CTS operating revenues is non-GAAP financial measure. For further details on this measure, see note 1, Non-GAAP financial measures above.

We have disclosed Bell CTS capital intensity for the periods from Q1 2021 to Q4 2022 because we believe this information may be useful to analysts and investors for the purpose of financial modelling and analysis of trends in business performance as a result of the segment reporting changes which will be implemented effective Q1 2023.

Effective Q1 2023, Bell CTS operating revenues will be presented in the Segmented Information note disclosed in our consolidated financial statements and therefore Bell CTS capital intensity will no longer be classified as a non-GAAP ratio.

BCE Supplementary Financial Information – Fourth Quarter 2022 Page 29