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Adjusted net interest expense

Published: 2022-02-03 12:29:02 ET

EX-99.2 3 d155750dex992.htm SUPPLEMENTARY FINANCIAL INFORMATION - FOURTH QUARTER 2021 SUPPLEMENTARY FINANCIAL INFORMATION - FOURTH QUARTER 2021

Exhibit 99.2




Q4		Supplementary Financial Information Fourth Quarter 2021

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 2021			Q4 2020			$ change			% change		TOTAL 2021			TOTAL 2020			$ change			% change
Operating revenues
Service		5,243			5,090			153			3.0%		20,350			19,832			518			2.6%
Product		966			1,012			(46	)		(4.5%)		3,099			3,051			48			1.6%
Total operating revenues		6,209			6,102			107			1.8%		23,449			22,883			566			2.5%
Operating costs		(3,779	)		(3,698	)		(81	)		(2.2%)		(13,556	)		(13,276	)		(280	)		(2.1%)
Adjusted EBITDA ^(A)		2,430			2,404			26			1.1%		9,893			9,607			286			3.0%
*Adjusted EBITDA margin* ^(B)(3)		*39.1%*			39.4%						(0.3) pts		*42.2%*			42.0%						0.2 pts
Severance, acquisition and other costs		(63	)		(52	)		(11	)		(21.2%)		(209	)		(116	)		(93	)		(80.2%)
Depreciation		(925	)		(872	)		(53	)		(6.1%)		(3,627	)		(3,475	)		(152	)		(4.4%)
Amortization		(251	)		(233	)		(18	)		(7.7%)		(982	)		(929	)		(53	)		(5.7%)
Finance costs
Interest expense		(275	)		(274	)		(1	)		(0.4%)		(1,082	)		(1,110	)		28			2.5%
Interest on post-employment benefit obligations		(5	)		(11	)		6			54.5%		(20	)		(46	)		26			56.5%
Impairment of assets		(30	)		(12	)		(18	)		n.m.		(197	)		(472	)		275			58.3%
Other income (expense)		26			(38	)		64			n.m.		160			(194	)		354			n.m.
Income taxes		(249	)		(191	)		(58	)		(30.4%)		(1,044	)		(792	)		(252	)		(31.8%)
Net earnings from continuing operations		658			721			(63	)		(8.7%)		2,892			2,473			419			16.9%
Net earnings from discontinued operations		-			211			(211	)		(100.0%)		-			226			(226	)		(100.0%)
Net earnings		658			932			(274	)		(29.4%)		2,892			2,699			193			7.2%

Net earnings from continuing operations attributable to:
Common shareholders		625			678			(53	)		(7.8%)		2,709			2,272			437			19.2%
Preferred shareholders		33			32			1			3.1%		131			136			(5	)		(3.7%)
Non-controlling interest		-			11			(11	)		(100.0%)		52			65			(13	)		(20.0%)
Net earnings from continuing operations		658			721			(63	)		(8.7%)		2,892			2,473			419			16.9%

Net earnings attributable to:
Common shareholders		625			889			(264	)		(29.7%)		2,709			2,498			211			8.4%
Preferred shareholders		33			32			1			3.1%		131			136			(5	)		(3.7%)
Non-controlling interest		-			11			(11	)		(100.0%)		52			65			(13	)		(20.0%)
Net earnings		658			932			(274	)		(29.4%)		2,892			2,699			193			7.2%

Net earnings per common share - basic and diluted
Continuing operations	$	0.69		$	0.75		$	(0.06	)		(8.0%)	$	2.99		$	2.51		$	0.48			19.1%
Discontinued operations	$	-		$	0.23		$	(0.23	)		(100.0%)	$	-		$	0.25		$	(0.25	)		(100.0%)
Net earnings per common share - basic and diluted	$	0.69		$	0.98		$	(0.29	)		(29.6%)	$	2.99		$	2.76		$	0.23			8.3%

Dividends per common share	$	0.8750		$	0.8325		$	0.0425			5.1%	$	3.5000		$	3.3300		$	0.17			5.1%

Weighted average number of common shares outstanding - basic (millions)		908.8			904.4								906.3			904.3
Weighted average number of common shares outstanding - diluted (millions)		909.6			904.4								906.7			904.4
Number of common shares outstanding (millions)		909.0			904.4								909.0			904.4

Adjusted net earnings and adjusted EPS
Net earnings attributable to common shareholders		625			889			(264	)		(29.7%)		2,709			2,498			211			8.4%
Reconciling items:
Severance, acquisition and other costs		63			52			11			21.2%		209			116			93			80.2%
Net mark-to-market (gains) losses on derivatives used to economically hedge equity settled share-based compensation plans		(57	)		1			(58	)		n.m.		(278	)		51			(329	)		n.m.
Net equity losses (gains) on investment in associates and joint ventures		35			-			35			n.m.		49			(43	)		92			n.m.
Net losses (gains) on investments		6			(3	)		9			n.m.		6			(3	)		9			n.m.
Early debt redemption costs		-			12			(12	)		(100.0%)		53			50			3			6.0%
Impairment of assets		30			12			18			n.m.		197			472			(275	)		(58.3%)
Income taxes for the above reconciling items		(9	)		(21	)		12			57.1%		(48	)		(185	)		137			74.1%
Non-controlling interest (NCI) for the above reconciling items		(1	)		-			(1	)		n.m.		(2	)		-			(2	)		n.m.
Net earnings from discontinued operations (net of income taxes)		-			(211	)		211			100.0%		-			(226	)		226			100.0%
Adjusted net earnings ^(A)		692			731			(39	)		(5.3%)		2,895			2,730			165			6.0%
Adjusted EPS ^(A)	$	0.76		$	0.81		$	(0.05	)		(6.2%)	$	3.19		$	3.02		$	0.17			5.6%

n.m. : not meaningful

^(A)

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

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

BCE Supplementary Financial Information - Fourth Quarter 2021 Page 2

BCE

Consolidated Operational Data - Historical Trend


(In millions of Canadian dollars, except share amounts) (unaudited)		TOTAL 2021			Q4 21			Q3 21			Q2 21			Q1 21			TOTAL 2020			Q4 20			Q3 20			Q2 20			Q1 20
Operating revenues
Service		20,350			5,243			5,099			5,040			4,968			19,832			5,090			4,924			4,800			5,018
Product		3,099			966			737			658			738			3,051			1,012			863			554			622
Total operating revenues		23,449			6,209			5,836			5,698			5,706			22,883			6,102			5,787			5,354			5,640
Operating costs		(13,556	)		(3,779	)		(3,278	)		(3,222	)		(3,277	)		(13,276	)		(3,698	)		(3,333	)		(3,023	)		(3,222	)
Adjusted EBITDA		9,893			2,430			2,558			2,476			2,429			9,607			2,404			2,454			2,331			2,418
*Adjusted EBITDA margin*		*42.2%*			*39.1%*			43.8%			43.5%			42.6%			42.0%			39.4%			42.4%			43.5%			42.9%
Severance, acquisition and other costs		(209	)		(63	)		(50	)		(7	)		(89	)		(116	)		(52	)		(26	)		(22	)		(16	)
Depreciation		(3,627	)		(925	)		(902	)		(905	)		(895	)		(3,475	)		(872	)		(876	)		(869	)		(858	)
Amortization		(982	)		(251	)		(245	)		(248	)		(238	)		(929	)		(233	)		(232	)		(234	)		(230	)
Finance costs
Interest expense		(1,082	)		(275	)		(272	)		(268	)		(267	)		(1,110	)		(274	)		(279	)		(280	)		(277	)
Interest on post-employment benefit obligations		(20	)		(5	)		(5	)		(5	)		(5	)		(46	)		(11	)		(12	)		(11	)		(12	)
Impairment of assets		(197	)		(30	)		-			(164	)		(3	)		(472	)		(12	)		(4	)		(449	)		(7	)
Other income (expense)		160			26			35			91			8			(194	)		(38	)		(29	)		(80	)		(47	)
Income taxes		(1,044	)		(249	)		(306	)		(236	)		(253	)		(792	)		(191	)		(262	)		(96	)		(243	)
Net earnings from continuing operations		2,892			658			813			734			687			2,473			721			734			290			728
Net earnings from discontinued operations		-			-			-			-			-			226			211			6			4			5
Net earnings		2,892			658			813			734			687			2,699			932			740			294			733

Net earnings from continuing operations attributable to:
Common shareholders		2,709			625			757			685			642			2,272			678			686			233			675
Preferred shareholders		131			33			34			32			32			136			32			32			34			38
Non-controlling interest		52			-			22			17			13			65			11			16			23			15
Net earnings from continuing operations		2,892			658			813			734			687			2,473			721			734			290			728

Net earnings attributable to:
Common shareholders		2,709			625			757			685			642			2,498			889			692			237			680
Preferred shareholders		131			33			34			32			32			136			32			32			34			38
Non-controlling interest		52			-			22			17			13			65			11			16			23			15
Net earnings		2,892			658			813			734			687			2,699			932			740			294			733

Net earnings per common share - basic and diluted
Continuing operations	$	2.99		$	0.69		$	0.83		$	0.76		$	0.71		$	2.51		$	0.75		$	0.76		$	0.26		$	0.74
Discontinued operations	$	-		$	-		$	-		$	-		$	-		$	0.25		$	0.23		$	0.01		$	-		$	0.01
Net earnings per common share - basic and diluted	$	2.99		$	0.69		$	0.83		$	0.76		$	0.71		$	2.76		$	0.98		$	0.77		$	0.26		$	0.75

Dividends per common share	$	3.5000		$	0.8750		$	0.8750		$	0.8750		$	0.8750		$	3.3300		$	0.8325		$	0.8325		$	0.8325		$	0.8325

Weighted average number of common shares outstanding - basic (millions)		906.3			908.8			906.9			905.0			904.5			904.3			904.4			904.3			904.3			904.1
Weighted average number of common shares outstanding - diluted (millions)		906.7			909.6			907.6			905.3			904.5			904.4			904.4			904.4			904.4			904.5
Number of common shares outstanding (millions)		909.0			909.0			908.8			905.7			904.6			904.4			904.4			904.3			904.3			904.3

Adjusted net earnings and adjusted EPS
Net earnings attributable to common shareholders		2,709			625			757			685			642			2,498			889			692			237			680
Reconciling items:
Severance, acquisition and other costs		209			63			50			7			89			116			52			26			22			16
Net mark-to-market (gains) losses on derivatives used to economically hedge equity settled share-based compensation plans		(278	)		(57	)		(61	)		(100	)		(60	)		51			1			13			9			28
Net equity losses (gains) on investment in associates and joint ventures		49			35			-			14			-			(43	)		-			(22	)		(11	)		(10	)
Net losses (gains) on investments		6			6			-			-			-			(3	)		(3	)		-			-			-
Early debt redemption costs		53			-			-			-			53			50			12			21			-			17
Impairment of assets		197			30			-			164			3			472			12			4			449			7
Income taxes for the above reconciling items		(48	)		(9	)		2			(18	)		(23	)		(185	)		(21	)		(16	)		(129	)		(19	)
NCI for the above reconciling items		(2	)		(1	)		-			(1	)		-			-			-			-			-			-
Net earnings from discontinued operations (net of income taxes)		-			-			-			-			-			(226	)		(211	)		(6	)		(4	)		(5	)
Adjusted net earnings		2,895			692			748			751			704			2,730			731			712			573			714
Adjusted EPS	$	3.19		$	0.76		$	0.82		$	0.83		$	0.78		$	3.02		$	0.81		$	0.79		$	0.63		$	0.79

BCE Supplementary Financial Information - Fourth Quarter 2021 Page 3

BCE ⁽¹⁾

Segmented Data


(In millions of Canadian dollars, except where otherwise indicated) (unaudited)	Q4 2021			Q4 2020			$ change			% change		TOTAL 2021			TOTAL 2020			$ change			% change

Operating revenues
Bell Wireless		2,475			2,408			67			2.8%		8,999			8,683			316			3.6%
Bell Wireline		3,079			3,095			(16	)		(0.5%)		12,178			12,206			(28	)		(0.2%)
Bell Media		849			791			58			7.3%		3,036			2,750			286			10.4%
Inter-segment eliminations		(194	)		(192	)		(2	)		(1.0%)		(764	)		(756	)		(8	)		(1.1%)
Total		6,209			6,102			107			1.8%		23,449			22,883			566			2.5%

Operating costs
Bell Wireless		(1,524	)		(1,505	)		(19	)		(1.3%)		(5,146	)		(5,017	)		(129	)		(2.6%)
Bell Wireline		(1,753	)		(1,783	)		30			1.7%		(6,863	)		(6,960	)		97			1.4%
Bell Media		(696	)		(602	)		(94	)		(15.6%)		(2,311	)		(2,055	)		(256	)		(12.5%)
Inter-segment eliminations		194			192			2			1.0%		764			756			8			1.1%
Total		(3,779	)		(3,698	)		(81	)		(2.2%)		(13,556	)		(13,276	)		(280	)		(2.1%)

Adjusted EBITDA
Bell Wireless		951			903			48			5.3%		3,853			3,666			187			5.1%
Margin		*38.4%*			37.5%						0.9 pts		*42.8%*			42.2%						0.6 pts
Bell Wireline		1,326			1,312			14			1.1%		5,315			5,246			69			1.3%
Margin		*43.1%*			42.4%						0.7 pts		*43.6%*			43.0%						0.6 pts
Bell Media		153			189			(36	)		(19.0%)		725			695			30			4.3%
Margin		*18.0%*			23.9%						(5.9) pts		*23.9%*			25.3%						(1.4) pts
Total		2,430			2,404			26			1.1%		9,893			9,607			286			3.0%
Margin		*39.1%*			39.4%						(0.3) pts		*42.2%*			42.0%						0.2 pts

Capital expenditures
Bell Wireless		274			392			118			30.1%		1,120			916			(204	)		(22.3%)
Capital intensity ^(A)(3)		*11.1%*			16.3%						5.2 pts		*12.4%*			10.5%						(1.9) pts
Bell Wireline		1,133			1,053			(80	)		(7.6%)		3,597			3,161			(436	)		(13.8%)
Capital intensity		*36.8%*			34.0%						(2.8) pts		*29.5%*			25.9%						(3.6) pts
Bell Media		52			49			(3	)		(6.1%)		120			125			5			4.0%
Capital intensity		*6.1%*			6.2%						0.1 pts		*4.0%*			4.5%						0.5 pts
Total		1,459			1,494			35			2.3%		4,837			4,202			(635	)		(15.1%)
Capital intensity		*23.5%*			24.5%						1.0 pts		*20.6%*			18.4%						(2.2) pts

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

BCE Supplementary Financial Information - Fourth Quarter 2021 Page 4

BCE

Segmented Data - Historical Trend


(In millions of Canadian dollars, except where otherwise indicated) (unaudited)	TOTAL 2021			Q4 21			Q3 21			Q2 21			Q1 21			TOTAL 2020			Q4 20			Q3 20			Q2 20			Q1 20

Operating revenues
Bell Wireless		8,999			2,475			2,296			2,128			2,100			8,683			2,408			2,318			1,922			2,035
Bell Wireline		12,178			3,079			3,015			3,003			3,081			12,206			3,095			3,032			3,043			3,036
Bell Media		3,036			849			719			755			713			2,750			791			628			579			752
Inter-segment eliminations		(764	)		(194	)		(194	)		(188	)		(188	)		(756	)		(192	)		(191	)		(190	)		(183	)
Total		23,449			6,209			5,836			5,698			5,706			22,883			6,102			5,787			5,354			5,640

Operating costs
Bell Wireless		(5,146	)		(1,524	)		(1,286	)		(1,159	)		(1,177	)		(5,017	)		(1,505	)		(1,362	)		(1,043	)		(1,107	)
Bell Wireline		(6,863	)		(1,753	)		(1,682	)		(1,710	)		(1,718	)		(6,960	)		(1,783	)		(1,712	)		(1,764	)		(1,701	)
Bell Media		(2,311	)		(696	)		(504	)		(541	)		(570	)		(2,055	)		(602	)		(450	)		(406	)		(597	)
Inter-segment eliminations		764			194			194			188			188			756			192			191			190			183
Total		(13,556	)		(3,779	)		(3,278	)		(3,222	)		(3,277	)		(13,276	)		(3,698	)		(3,333	)		(3,023	)		(3,222	)

Adjusted EBITDA
Bell Wireless		3,853			951			1,010			969			923			3,666			903			956			879			928
Margin		*42.8%*			*38.4%*			44.0%			45.5%			44.0%			42.2%			37.5%			41.2%			45.7%			45.6%
Bell Wireline		5,315			1,326			1,333			1,293			1,363			5,246			1,312			1,320			1,279			1,335
Margin		*43.6%*			*43.1%*			44.2%			43.1%			44.2%			43.0%			42.4%			43.5%			42.0%			44.0%
Bell Media		725			153			215			214			143			695			189			178			173			155
Margin		*23.9%*			*18.0%*			29.9%			28.3%			20.1%			25.3%			23.9%			28.3%			29.9%			20.6%
Total		9,893			2,430			2,558			2,476			2,429			9,607			2,404			2,454			2,331			2,418
Margin		*42.2%*			*39.1%*			43.8%			43.5%			42.6%			42.0%			39.4%			42.4%			43.5%			42.9%

Capital expenditures
Bell Wireless		1,120			274			254			306			286			916			392			212			182			130
Capital intensity		*12.4%*			*11.1%*			11.1%			14.4%			13.6%			10.5%			16.3%			9.1%			9.5%			6.4%
Bell Wireline		3,597			1,133			880			877			707			3,161			1,053			792			694			622
Capital intensity		*29.5%*			*36.8%*			29.2%			29.2%			22.9%			25.9%			34.0%			26.1%			22.8%			20.5%
Bell Media		120			52			25			24			19			125			49			27			24			25
Capital intensity		*4.0%*			*6.1%*			3.5%			3.2%			2.7%			4.5%			6.2%			4.3%			4.1%			3.3%
Total		4,837			1,459			1,159			1,207			1,012			4,202			1,494			1,031			900			777
Capital intensity		*20.6%*			*23.5%*			19.9%			21.2%			17.7%			18.4%			24.5%			17.8%			16.8%			13.8%

BCE Supplementary Financial Information - Fourth Quarter 2021 Page 5

Bell Wireless ⁽¹⁾


(In millions of Canadian dollars, except where otherwise indicated) (unaudited)	Q4 2021		Q4 2020		% change	TOTAL 2021		TOTAL 2020		% change
Bell Wireless
Operating revenues
External service revenues	1,641		1,543		6.4%	6,355		6,122		3.8%
Inter-segment service revenues	11		11		-	45		47		(4.3%)
Operating service revenues	1,652		1,554		6.3%	6,400		6,169		3.7%
External product revenues	821		851		(3.5%)	2,593		2,508		3.4%
Inter-segment product revenues	2		3		(33.3%)	6		6		-
Operating product revenues	823		854		(3.6%)	2,599		2,514		3.4%
Total external revenues	2,462		2,394		2.8%	8,948		8,630		3.7%
Total operating revenues	2,475		2,408		2.8%	8,999		8,683		3.6%
Operating costs	(1,524	)	(1,505	)	(1.3%)	(5,146	)	(5,017	)	(2.6%)
Adjusted EBITDA	951		903		5.3%	3,853		3,666		5.1%
Adjusted EBITDA margin	*38.4%*		37.5%		0.9 pts	*42.8%*		42.2%		0.6 pts

Capital expenditures	274		392		30.1%	1,120		916		(22.3%)
Capital intensity	*11.1%*		16.3%		5.2 pts	*12.4%*		10.5%		(1.9) pts
Mobile phone subscribers^(A)(3)
Gross subscriber activations	495,076		445,322		11.2%	1,653,771		1,545,173		7.0%

Postpaid	373,621		328,051		13.9%	1,201,659		1,025,748		17.1%

Prepaid	121,455		117,271		3.6%	452,112		519,425		(13.0%)
Net subscriber activations (losses)	109,726		61,716		77.8%	294,842		190,675		54.6%

Postpaid	109,527		73,388		49.2%	301,706		152,693		97.6%

Prepaid	199		(11,672	)	n.m.	(6,864	)	37,982		n.m.
Subscribers end of period (EOP)	9,459,185		9,164,343		3.2%	9,459,185		9,164,343		3.2%

Postpaid	8,630,045		8,328,339		3.6%	8,630,045		8,328,339		3.6%

Prepaid	829,140		836,004		(0.8%)	829,140		836,004		(0.8%)

Blended average revenue per user (ARPU) ($/month)^(B)(3)	58.61		56.75		3.3%	57.66		56.97		1.2%
Blended churn (%) (average per month)⁽³⁾	1.37%		1.40%		0.03 pts	1.23%		1.26%		0.03 pts

Postpaid	1.08%		1.06%		(0.02) pts	0.93%		0.92%		(0.01) pts

Prepaid	4.42%		4.79%		0.37 pts	4.31%		4.60%		0.29 pts
Mobile connected device subscribers ^(A)(3)
Net subscriber activations	38,998		98,949		(60.6%)	193,641		227,981		(15.1%)

Subscribers EOP	2,249,794		2,056,153		9.4%	2,249,794		2,056,153		9.4%

n.m. : not meaningful

^(A)

Effective January 1, 2021, we changed our wireless operating metrics to reflect our revised approach to reporting wireless subscriber units. Consequently, we are now reporting in two categories, mobile phone subscriber units and mobile connected device subscriber units (e.g. tablets, wearables and mobile Internet devices). Additionally, mobile connected device subscribers now include previously undisclosed Internet of Things (IoT) units (e.g. connected telematics services, monitoring devices, connected cars and fleet management solutions). These changes are consistent with the way we manage our business, reflect our focus on mobile phone subscribers and align to industry peers. As a result, previously reported 2020 subscribers and associated operating metrics (gross and net activations (losses) and churn) have been restated for comparability.

^(B)

Effective Q4 2021, we are no longer reporting mobile phone blended average billing per user (ABPU). Instead, we are reporting mobile phone blended ARPU in order to align with industry peers. 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 2021 Page 6

Bell Wireless - Historical Trend


(In millions of Canadian dollars, except where otherwise indicated) (unaudited)	TOTAL 2021			Q4 21			Q3 21			Q2 21			Q1 21			TOTAL 2020			Q4 20			Q3 20			Q2 20			Q1 20
Bell Wireless
Operating revenues
External service revenues		6,355			1,641			1,642			1,569			1,503			6,122			1,543			1,563			1,481			1,535
Inter-segment service revenues		45			11			12			11			11			47			11			12			12			12
Operating service revenues		6,400			1,652			1,654			1,580			1,514			6,169			1,554			1,575			1,493			1,547
External product revenues		2,593			821			642			546			584			2,508			851			742			428			487
Inter-segment product revenues		6			2			-			2			2			6			3			1			1			1
Operating product revenues		2,599			823			642			548			586			2,514			854			743			429			488
Total external revenues		8,948			2,462			2,284			2,115			2,087			8,630			2,394			2,305			1,909			2,022
Total operating revenues		8,999			2,475			2,296			2,128			2,100			8,683			2,408			2,318			1,922			2,035
Operating costs		(5,146	)		(1,524	)		(1,286	)		(1,159	)		(1,177	)		(5,017	)		(1,505	)		(1,362	)		(1,043	)		(1,107	)
Adjusted EBITDA		3,853			951			1,010			969			923			3,666			903			956			879			928
Adjusted EBITDA margin		*42.8%*			*38.4%*			44.0%			45.5%			44.0%			42.2%			37.5%			41.2%			45.7%			45.6%

Capital expenditures		1,120			274			254			306			286			916			392			212			182			130
Capital intensity		*12.4%*			*11.1%*			11.1%			14.4%			13.6%			10.5%			16.3%			9.1%			9.5%			6.4%
Mobile phone subscribers^(A)
Gross subscriber activations		1,653,771			495,076			470,165			348,403			340,127			1,545,173			445,322			457,161			309,133			333,557
Postpaid		1,201,659			373,621			336,328			242,720			248,990			1,025,748			328,051			308,558			179,589			209,550

Prepaid		452,112			121,455			133,837			105,683			91,137			519,425			117,271			148,603			129,544			124,007
Net subscriber activations (losses)		294,842			109,726			136,464			46,247			2,405			190,675			61,716			119,345			12,110			(2,496	)
Postpaid		301,706			109,527			114,821			44,433			32,925			152,693			73,388			78,706			(960	)		1,559

Prepaid		(6,864	)		199			21,643			1,814			(30,520	)		37,982			(11,672	)		40,639			13,070			(4,055	)
Subscribers EOP		9,459,185			9,459,185			9,349,459			9,212,995			9,166,748			9,164,343			9,164,343			9,102,627			8,983,282			8,971,172
Postpaid		8,630,045			8,630,045			8,520,518			8,405,697			8,361,264			8,328,339			8,328,339			8,254,951			8,176,245			8,177,205

Prepaid		829,140			829,140			828,941			807,298			805,484			836,004			836,004			847,676			807,037			793,967

Blended ARPU ($/month) ^(B)		57.66			58.61			59.47			57.36			55.17			56.97			56.75			58.09			55.49			57.55
Blended churn (%) (average per month)		1.23%			1.37%			1.21%			1.10%			1.23%			1.26%			1.40%			1.25%			1.11%			1.26%
Postpaid		0.93%			1.08%			0.93%			0.83%			0.89%			0.92%			1.06%			0.98%			0.76%			0.89%
Prepaid		4.31%			4.42%			4.15%			3.98%			4.68%			4.60%			4.79%			3.98%			4.63%			5.03%
Mobile connected device subscribers^(A)
Net subscriber activations		193,641			38,998			33,035			47,449			74,159			227,981			98,949			41,225			38,843			48,964
Subscribers EOP		2,249,794			2,249,794			2,210,796			2,177,761			2,130,312			2,056,153			2,056,153			1,957,204			1,915,979			1,877,136

^(A)

Effective January 1, 2021, we changed our wireless operating metrics to reflect our revised approach to reporting wireless subscriber units. Consequently, we are now reporting in two categories, mobile phone subscriber units and mobile connected device subscriber units (e.g. tablets, wearables and mobile Internet devices). Additionally, mobile connected device subscribers now include previously undisclosed IoT units (e.g. connected telematics services, monitoring devices, connected cars and fleet management solutions). These changes are consistent with the way we manage our business, reflect our focus on mobile phone subscribers and align to industry peers. As a result, previously reported 2020 subscribers and associated operating metrics (gross and net activations (losses) and churn) have been restated for comparability.

^(B)	Effective Q4 2021, we are no longer reporting mobile phone blended ABPU. Instead, we are reporting mobile phone blended ARPU in order to align with industry peers.

BCE Supplementary Financial Information - Fourth Quarter 2021 Page 7

Bell Wireline ⁽¹⁾


(In millions of Canadian dollars, except where otherwise indicated) (unaudited)	Q4 2021			Q4 2020			% change		TOTAL 2021			TOTAL 2020			% change
Bell Wireline
Operating revenues
Data		1,986			1,953			1.7%		7,871			7,691			2.3%
Voice		779			828			(5.9%)		3,154			3,402			(7.3%)
Other services		75			67			11.9%		289			248			16.5%
External service revenues		2,840			2,848			(0.3%)		11,314			11,341			(0.2%)
Inter-segment service revenues		94			85			10.6%		358			321			11.5%
Operating service revenues		2,934			2,933			-		11,672			11,662			0.1%
Data		132			148			(10.8%)		463			494			(6.3%)
Equipment and other		13			13			-		43			49			(12.2%)
External product revenues		145			161			(9.9%)		506			543			(6.8%)
Inter-segment product revenues		-			1			(100.0%)		-			1			(100.0%)
Operating product revenues		145			162			(10.5%)		506			544			(7.0%)
Total external revenues		2,985			3,009			(0.8%)		11,820			11,884			(0.5%)
Total operating revenues		3,079			3,095			(0.5%)		12,178			12,206			(0.2%)
Operating costs		(1,753	)		(1,783	)		1.7%		(6,863	)		(6,960	)		1.4%
Adjusted EBITDA		1,326			1,312			1.1%		5,315			5,246			1.3%
Adjusted EBITDA margin		*43.1%*			42.4%			0.7 pts		*43.6%*			43.0%			0.6 pts

Capital expenditures		1,133			1,053			(7.6%)		3,597			3,161			(13.8%)

Capital intensity		*36.8%*			34.0%			(2.8) pts		*29.5%*			25.9%			(3.6) pts
Retail high-speed Internet subscribers ⁽³⁾

Retail net subscriber activations		47,618			44,512			7.0%		152,285			148,989			2.2%

Retail subscribers EOP^(A)		3,861,653			3,704,590			4.2%		3,861,653			3,704,590			4.2%

Retail TV subscribers ⁽³⁾

Retail net subscriber activations (losses)		6,049			536			n.m.		2,530			(33,859	)		n.m.

Internet protocol television (IPTV)		29,191			21,106			38.3%		76,068			39,191			94.1%

Satellite		(23,142	)		(20,570	)		(12.5%)		(73,538	)		(73,050	)		(0.7%)

Total retail subscribers EOP^(B)		2,735,010			2,738,605			(0.1%)		2,735,010			2,738,605			(0.1%)

IPTV		1,882,441			1,806,373			4.2%		1,882,441			1,806,373			4.2%

Satellite^(B)		852,569			932,232			(8.5%)		852,569			932,232			(8.5%)

Retail residential network access services (NAS)⁽³⁾

Retail residential NAS lines net losses		(40,211	)		(53,759	)		25.2%		(185,327	)		(213,551	)		13.2%

Retail residential NAS lines		2,298,605			2,483,932			(7.5%)		2,298,605			2,483,932			(7.5%)

n.m. : not meaningful

^(A)	At the beginning of Q1 2021, our retail high-speed Internet subscriber base was increased by 4,778 subscribers due to the transfer of fixed wireless Internet subscribers from our mobiled connected devices subscriber base.

^(B)	At the beginning of Q1 2021, we adjusted our satellite TV subscriber base to remove 6,125 non-revenue generating units.

BCE Supplementary Financial Information - Fourth Quarter 2021 Page 8

Bell Wireline - Historical Trend


(In millions of Canadian dollars, except where otherwise indicated) (unaudited)	TOTAL 2021			Q4 21			Q3 21			Q2 21			Q1 21			TOTAL 2020			Q4 20			Q3 20			Q2 20			Q1 20
Bell Wireline
Operating revenues
Data		7,871			1,986			1,976			1,944			1,965			7,691			1,953			1,931			1,916			1,891
Voice		3,154			779			778			794			803			3,402			828			839			863			872
Other services		289			75			73			67			74			248			67			61			58			62
External service revenues		11,314			2,840			2,827			2,805			2,842			11,341			2,848			2,831			2,837			2,825
Inter-segment service revenues		358			94			93			86			85			321			85			80			80			76
Operating service revenues		11,672			2,934			2,920			2,891			2,927			11,662			2,933			2,911			2,917			2,901
Data		463			132			86			101			144			494			148			110			113			123
Equipment and other		43			13			9			11			10			49			13			11			13			12
External product revenues		506			145			95			112			154			543			161			121			126			135
Inter-segment product revenues		-			-			-			-			-			1			1			-			-			-
Operating product revenues		506			145			95			112			154			544			162			121			126			135
Total external revenues		11,820			2,985			2,922			2,917			2,996			11,884			3,009			2,952			2,963			2,960
Total operating revenues		12,178			3,079			3,015			3,003			3,081			12,206			3,095			3,032			3,043			3,036
Operating costs		(6,863	)		(1,753	)		(1,682	)		(1,710	)		(1,718	)		(6,960	)		(1,783	)		(1,712	)		(1,764	)		(1,701	)
Adjusted EBITDA		5,315			1,326			1,333			1,293			1,363			5,246			1,312			1,320			1,279			1,335
Adjusted EBITDA margin		*43.6%*			*43.1%*			44.2%			43.1%			44.2%			43.0%			42.4%			43.5%			42.0%			44.0%

Capital expenditures		3,597			1,133			880			877			707			3,161			1,053			792			694			622
Capital intensity		*29.5%*			*36.8%*			29.2%			29.2%			22.9%			25.9%			34.0%			26.1%			22.8%			20.5%
Retail high-speed Internet subscribers

Retail net subscriber activations		152,285			47,618			65,779			17,680			21,208			148,989			44,512			62,859			19,023			22,595

Retail subscribers EOP^(A)		3,861,653			3,861,653			3,814,035			3,748,256			3,730,576			3,704,590			3,704,590			3,660,078			3,597,219			3,578,196

Retail TV subscribers

Retail net subscriber activations (losses)		2,530			6,049			10,521			(4,928	)		(9,112	)		(33,859	)		536			(296	)		(15,544	)		(18,555	)

IPTV		76,068			29,191			31,641			4,540			10,696			39,191			21,106			18,837			(3,604	)		2,852

Satellite		(73,538	)		(23,142	)		(21,120	)		(9,468	)		(19,808	)		(73,050	)		(20,570	)		(19,133	)		(11,940	)		(21,407	)

Total retail subscribers EOP^(B)		2,735,010			2,735,010			2,728,961			2,718,440			2,723,368			2,738,605			2,738,605			2,738,069			2,738,365			2,753,909

IPTV		1,882,441			1,882,441			1,853,250			1,821,609			1,817,069			1,806,373			1,806,373			1,785,267			1,766,430			1,770,034

Satellite^(B)		852,569			852,569			875,711			896,831			906,299			932,232			932,232			952,802			971,935			983,875

Retail residential NAS

Retail residential NAS lines net losses		(185,327	)		(40,211	)		(42,755	)		(51,292	)		(51,069	)		(213,551	)		(53,759	)		(49,792	)		(48,405	)		(61,595	)

Retail residential NAS lines		2,298,605			2,298,605			2,338,816			2,381,571			2,432,863			2,483,932			2,483,932			2,537,691			2,587,483			2,635,888

^(A)	At the beginning of Q1 2021, our retail high-speed Internet subscriber base was increased by 4,778 subscribers due to the transfer of fixed wireless Internet subscribers from our mobiled connected devices subscriber base.

^(B)	At the beginning of Q1 2021, we adjusted our satellite TV subscriber base to remove 6,125 non-revenue generating units.

BCE Supplementary Financial Information - Fourth Quarter 2021 Page 9

BCE

Net debt and other information


BCE - Net debt and preferred shares
(In millions of Canadian dollars, except where otherwise indicated) (unaudited)
																December 31 2021			September 30 2021			June 30 2021			March 31 2021			December 31 2020

Long-term debt																	27,048			27,070			25,422			24,965			23,906
Debt due within one year																	2,625			1,994			2,304			3,786			2,417
50% of preferred shares																	2,002			2,002			2,002			2,002			2,002
Cash																	(207	)		(2,086	)		(1,752	)		(1,907	)		(224	)
Cash equivalents																	-			(81	)		-			(700	)		-
Net debt ^(A)																	31,468			28,899			27,976			28,146			28,101

Net debt leverage ratio ^(A)																	3.18			2.93			2.87			2.93			2.93
Adjusted EBITDA /adjusted interest expense ratio ^(A)																	8.77			8.75			8.62			8.40			8.32



Cash flow information
(In millions of Canadian dollars, except where otherwise indicated) (unaudited)							Q4 2021			Q4 2020			$ change			% change			TOTAL 2021			TOTAL 2020			$ change			% change
Free cash flow (FCF) ^(A)
Cash flows from operating activities								1,743			1,631			112			6.9%			8,008			7,754			254			3.3%
Capital expenditures								(1,459	)		(1,494	)		35			2.3%			(4,837	)		(4,202	)		(635	)		(15.1%)
Cash dividends paid on preferred shares								(32	)		(31	)		(1	)		(3.2%)			(125	)		(132	)		7			5.3%
Cash dividends paid by subsidiaries to non-controlling interest								(45	)		(16	)		(29	)		n.m.			(86	)		(53	)		(33	)		(62.3%)
Acquisition and other costs paid								29			2			27			n.m.			35			35			-			-
Cash from discontinued operations (included in cash flows from operating activities)								-			-			-			-			-			(54	)		54			100.0%
FCF								236			92			144			n.m.			2,995			3,348			(353	)		(10.5%)



Cash flow information - Historical trend
(In millions of Canadian dollars, except where otherwise indicated) (unaudited)	TOTAL 2021			Q4 2021			Q3 2021			Q2 2021			Q1 2021			TOTAL 2020			Q4 2020			Q3 2020			Q2 2020			Q1 2020

FCF
Cash flows from operating activities		8,008			1,743			1,774			2,499			1,992			7,754			1,631			2,110			2,562			1,451
Capital expenditures		(4,837	)		(1,459	)		(1,159	)		(1,207	)		(1,012	)		(4,202	)		(1,494	)		(1,031	)		(900	)		(777	)
Cash dividends paid on preferred shares		(125	)		(32	)		(31	)		(31	)		(31	)		(132	)		(31	)		(32	)		(33	)		(36	)
Cash dividends paid by subsidiaries to non-controlling interest		(86	)		(45	)		(13	)		(15	)		(13	)		(53	)		(16	)		(11	)		(12	)		(14	)
Acquisition and other costs paid		35			29			-			2			4			35			2			13			11			9
Cash from discontinued operations (included in cash flows from operating activities)		-			-			-			-			-			(54	)		-			(15	)		(17	)		(22	)
FCF		2,995			236			571			1,248			940			3,348			92			1,034			1,611			611

n.m. : not meaningful

^(A)

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

BCE Supplementary Financial Information - Fourth Quarter 2021 Page 10

BCE

Consolidated Statements of Financial Position


(In millions of Canadian dollars, except where otherwise indicated) (unaudited)	December 31 2021			September 30 2021			June 30 2021			March 31 2021			December 31 2020
*ASSETS*
Current assets
Cash		207			2,086			1,752			1,907			224
Cash equivalents		-			81			-			700			-
Trade and other receivables		3,949			3,498			3,244			3,247			3,528
Inventory		482			418			418			459			439
Contract assets		414			410			467			563			687
Contract costs		507			464			441			424			402
Prepaid expenses		254			292			346			345			209
Other current assets		335			292			278			244			199
Assets held for sale		50			-			-			-			-
Total current assets		6,198			7,541			6,946			7,889			5,688
Non-current assets
Contract assets		251			235			230			236			256
Contract costs		387			373			364			344			362
Property, plant and equipment		28,235			27,825			27,554			27,370			27,513
Intangible assets		15,570			13,367			13,263			13,227			13,102
Deferred tax assets		105			124			118			107			106
Investments in associates and joint ventures		668			697			725			745			756
Post-employment benefit assets		3,441			3,785			3,185			2,601			1,277
Other non-current assets		1,306			1,811			1,167			1,124			1,001
Goodwill		10,572			10,578			10,579			10,606			10,604
Total non-current assets		60,535			58,795			57,185			56,360			54,977
Total assets		66,733			66,336			64,131			64,249			60,665
*LIABILITIES*
Current liabilities
Trade payables and other liabilities		4,455			4,131			3,904			3,723			3,935
Contract liabilities		799			748			767			762			717
Interest payable		247			159			228			181			222
Dividends payable		811			810			806			804			766
Current tax liabilities		141			162			344			271			214
Debt due within one year		2,625			1,994			2,304			3,786			2,417
Liabilities held for sale		35			-			-			-			-
Total current liabilities		9,113			8,004			8,353			9,527			8,271
Non-current liabilities
Contract liabilities		246			245			242			242			242
Long-term debt		27,048			27,070			25,422			24,965			23,906
Deferred tax liabilities		4,671			4,824			4,530			4,285			3,810
Post-employment benefit obligations		1,734			1,672			1,734			1,723			1,962
Other non-current liabilities		1,003			1,012			1,081			1,141			1,145
Total non-current liabilities		34,702			34,823			33,009			32,356			31,065
Total liabilities		43,815			42,827			41,362			41,883			39,336

*EQUITY*
Equity attributable to BCE shareholders
Preferred shares		4,003			4,003			4,003			4,003			4,003
Common shares		20,662			20,646			20,467			20,400			20,390
Contributed surplus		1,157			1,151			1,156			1,154			1,174
Accumulated other comprehensive income		213			320			204			163			103
Deficit		(3,423	)		(2,962	)		(3,401	)		(3,693	)		(4,681	)
Total equity attributable to BCE shareholders		22,612			23,158			22,429			22,027			20,989
Non-controlling interest		306			351			340			339			340
Total equity		22,918			23,509			22,769			22,366			21,329
Total liabilities and equity		66,733			66,336			64,131			64,249			60,665
Number of common shares outstanding (millions)		909.0			908.8			905.7			904.6			904.4

BCE Supplementary Financial Information - Fourth Quarter 2021 Page 11

BCE

Consolidated Cash Flow Data


(In millions of Canadian dollars, except where otherwise indicated) (unaudited)	Q4 2021			Q4 2020			$ change			TOTAL 2021			TOTAL 2020			$ change

Net earnings from continuing operations		658			721			(63	)		2,892			2,473			419
Adjustments to reconcile net earnings from continuing operations to cash flows from operating activities
Severance, acquisition and other costs		63			52			11			209			116			93
Depreciation and amortization		1,176			1,105			71			4,609			4,404			205
Post-employment benefit plans cost		69			76			(7	)		286			315			(29	)
Net interest expense		269			269			-			1,063			1,087			(24	)
Impairment of assets		30			12			18			197			472			(275	)
Losses (gains) on investments		6			(3	)		9			6			(3	)		9
Income taxes		249			191			58			1,044			792			252
Contributions to post-employment benefit plans		(69	)		(78	)		9			(282	)		(297	)		15
Payments under other post-employment benefit plans		(18	)		(17	)		(1	)		(65	)		(61	)		(4	)
Severance and other costs paid		(55	)		(19	)		(36	)		(208	)		(78	)		(130	)
Interest paid		(192	)		(235	)		43			(1,080	)		(1,112	)		32
Income taxes paid (net of refunds)		(302	)		(383	)		81			(913	)		(846	)		(67	)
Acquisition and other costs paid		(29	)		(2	)		(27	)		(35	)		(35	)		-
Change in contract assets		(21	)		132			(153	)		278			704			(426	)
Change in wireless device financing plan receivables		(121	)		(319	)		198			(365	)		(867	)		502
Net change in operating assets and liabilities		30			129			(99	)		372			636			(264	)
Cash from discontinued operations		-			-			-			-			54			(54	)
Cash flows from operating activities		1,743			1,631			112			8,008			7,754			254
Capital expenditures		(1,459	)		(1,494	)		35			(4,837	)		(4,202	)		(635	)
Cash dividends paid on preferred shares		(32	)		(31	)		(1	)		(125	)		(132	)		7
Cash dividends paid by subsidiaries to non-controlling interest		(45	)		(16	)		(29	)		(86	)		(53	)		(33	)
Acquisition and other costs paid		29			2			27			35			35			-
Cash from discontinued operations (included in cash flows from operating activities)		-			-			-			-			(54	)		54
Free cash flow		236			92			144			2,995			3,348			(353	)
Cash from discontinued operations (included in cash flows from operating activities)		-			-			-			-			54			(54	)
Business acquisitions		-			(42	)		42			(12	)		(65	)		53
Acquisition and other costs paid		(29	)		(2	)		(27	)		(35	)		(35	)		-
Acquisition of spectrum licences		(1,664	)		-			(1,664	)		(2,082	)		(86	)		(1,996	)
Other investing activities		(23	)		(12	)		(11	)		(72	)		(79	)		7
Cash from discontinued operations (included in cash flows from investing activities)		-			913			(913	)		-			892			(892	)
Increase (decrease) in notes payable and bank advances		719			(524	)		1,243			351			(1,641	)		1,992
(Decrease) increase in securitized trade receivables		(130	)		23			(153	)		(150	)		-			(150	)
Issue of long-term debt		-			-			-			4,985			6,006			(1,021	)
Repayment of long-term debt		(235	)		(1,094	)		859			(2,751	)		(5,003	)		2,252
Issue of common shares		16			4			12			261			26			235
Purchase of shares for settlement of share-based payments		(52	)		(54	)		2			(297	)		(263	)		(34	)
Cash dividends paid on common shares		(795	)		(753	)		(42	)		(3,132	)		(2,975	)		(157	)
Other financing activities		(3	)		(6	)		3			(78	)		(93	)		15
Cash used in discontinued operations (included in cash flows from financing activities)		-			-			-			-			(7	)		7
		(2,196	)		(1,547	)		(649	)		(3,012	)		(3,269	)		257
Net (decrease) increase in cash		(1,879	)		(1,258	)		(621	)		(17	)		83			(100	)
Cash at beginning of period		2,086			1,482			604			224			141			83
Cash at end of period		207			224			(17	)		207			224			(17	)
Net decrease in cash equivalents		(81	)		(197	)		116			-			(4	)		4
Cash equivalents at beginning of period		81			197			(116	)		-			4			(4	)
Cash equivalents at end of period		-			-			-			-			-			-

BCE Supplementary Financial Information - Fourth Quarter 2021 Page 12

BCE

Consolidated Cash Flow Data - Historical Trend


(In millions of Canadian dollars, except where otherwise indicated) (unaudited)	TOTAL 2021			Q4 21			Q3 21			Q2 21			Q1 21			TOTAL 2020			Q4 20			Q3 20			Q2 20			Q1 20

Net earnings from continuing operations		2,892			658			813			734			687			2,473			721			734			290			728
Adjustments to reconcile net earnings from continuing operations to cash flows from operating activities
Severance, acquisition and other costs		209			63			50			7			89			116			52			26			22			16
Depreciation and amortization		4,609			1,176			1,147			1,153			1,133			4,404			1,105			1,108			1,103			1,088
Post-employment benefit plans cost		286			69			70			68			79			315			76			77			75			87
Net interest expense		1,063			269			268			263			263			1,087			269			273			275			270
Impairment of assets		197			30			-			164			3			472			12			4			449			7
Losses (gains) on investments		6			6			-			-			-			(3	)		(3	)		-			-			-
Income taxes		1,044			249			306			236			253			792			191			262			96			243
Contributions to post-employment benefit plans		(282	)		(69	)		(64	)		(70	)		(79	)		(297	)		(78	)		(69	)		(71	)		(79	)
Payments under other post-employment benefit plans		(65	)		(18	)		(16	)		(16	)		(15	)		(61	)		(17	)		(15	)		(12	)		(17	)
Severance and other costs paid		(208	)		(55	)		(31	)		(79	)		(43	)		(78	)		(19	)		(11	)		(13	)		(35	)
Interest paid		(1,080	)		(192	)		(352	)		(230	)		(306	)		(1,112	)		(235	)		(321	)		(240	)		(316	)
Income taxes paid (net of refunds)		(913	)		(302	)		(407	)		(95	)		(109	)		(846	)		(383	)		(236	)		6			(233	)
Acquisition and other costs paid		(35	)		(29	)		-			(2	)		(4	)		(35	)		(2	)		(13	)		(11	)		(9	)
Change in contract assets		278			(21	)		53			102			144			704			132			178			239			155
Change in wireless device financing plan receivables		(365	)		(121	)		(92	)		(61	)		(91	)		(867	)		(319	)		(322	)		(150	)		(76	)
Net change in operating assets and liabilities		372			30			29			325			(12	)		636			129			420			487			(400	)
Cash from discontinued operations		-			-			-			-			-			54			-			15			17			22
Cash flows from operating activities		8,008			1,743			1,774			2,499			1,992			7,754			1,631			2,110			2,562			1,451
Capital expenditures		(4,837	)		(1,459	)		(1,159	)		(1,207	)		(1,012	)		(4,202	)		(1,494	)		(1,031	)		(900	)		(777	)
Cash dividends paid on preferred shares		(125	)		(32	)		(31	)		(31	)		(31	)		(132	)		(31	)		(32	)		(33	)		(36	)
Cash dividends paid by subsidiaries to non-controlling interest		(86	)		(45	)		(13	)		(15	)		(13	)		(53	)		(16	)		(11	)		(12	)		(14	)
Acquisition and other costs paid		35			29			-			2			4			35			2			13			11			9
Cash from discontinued operations (included in cash flows from operating activities)		-			-			-			-			-			(54	)		-			(15	)		(17	)		(22	)
Free cash flow		2,995			236			571			1,248			940			3,348			92			1,034			1,611			611
Cash from discontinued operations (included in cash flows from operating activities)		-			-			-			-			-			54			-			15			17			22
Business acquisitions		(12	)		-			(1	)		(11	)		-			(65	)		(42	)		-			(23	)		-
Acquisition and other costs paid		(35	)		(29	)		-			(2	)		(4	)		(35	)		(2	)		(13	)		(11	)		(9	)
Acquisition of spectrum licences		(2,082	)		(1,664	)		(418	)		-			-			(86	)		-			(85	)		-			(1	)
Other investing activities		(72	)		(23	)		(11	)		(17	)		(21	)		(79	)		(12	)		(49	)		(13	)		(5	)
Cash from (used in) discontinued operations (included in cash flows from investing activities)		-			-			-			-			-			892			913			(6	)		(8	)		(7	)
Increase (decrease) in notes payable and bank advances		351			719			(322	)		311			(357	)		(1,641	)		(524	)		317			(1,204	)		(230	)
(Decrease) increase in securitized trade receivables		(150	)		(130	)		(7	)		-			(13	)		-			23			(23	)		(400	)		400
Issue of long-term debt		4,985			-			1,570			500			2,915			6,006			-			750			1,975			3,281
Repayment of long-term debt		(2,751	)		(235	)		(249	)		(2,041	)		(226	)		(5,003	)		(1,094	)		(979	)		(2,221	)		(709	)
Issue of common shares		261			16			172			63			10			26			4			-			-			22
Purchase of shares for settlement of share-based payments		(297	)		(52	)		(83	)		(71	)		(91	)		(263	)		(54	)		(40	)		(75	)		(94	)
Cash dividends paid on common shares		(3,132	)		(795	)		(793	)		(791	)		(753	)		(2,975	)		(753	)		(753	)		(753	)		(716	)
Other financing activities		(78	)		(3	)		(14	)		(44	)		(17	)		(93	)		(6	)		(32	)		(25	)		(30	)
Cash used in discontinued operations (included in cash flows from financing activities)		-			-			-			-			-			(7	)		-			(4	)		(2	)		(1	)
		(3,012	)		(2,196	)		(156	)		(2,103	)		1,443			(3,269	)		(1,547	)		(902	)		(2,743	)		1,923
Net (decrease) increase in cash		(17	)		(1,879	)		334			(155	)		1,683			83			(1,258	)		185			354			802
Cash at beginning of period		224			2,086			1,752			1,907			224			141			1,482			1,297			943			141
Cash at end of period		207			207			2,086			1,752			1,907			224			224			1,482			1,297			943
Net (decrease) increase in cash equivalents		-			(81	)		81			(700	)		700			(4	)		(197	)		(53	)		(1,486	)		1,732
Cash equivalents at beginning of period		-			81			-			700			-			4			197			250			1,736			4
Cash equivalents at end of period		-			-			81			-			700			-			-			197			250			1,736

BCE Supplementary Financial Information - Fourth Quarter 2021 Page 13


				Accompanying Notes

(1)	Our results are reported in three segments: Bell Wireless, Bell Wireline and Bell Media. Our segments reflect how we manage our business and how we classify our operations for planning and measuring performance.

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

(2)	Non-GAAP and other financial measures

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

(2.1)

Non-GAAP financial measures

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

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

BCE Supplementary Financial Information - Fourth Quarter 2021 Page 14

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.

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.

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.

BCE Supplementary Financial Information - Fourth Quarter 2021 Page 15

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

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

(2.2)

Non-GAAP ratios

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

Adjusted EPS

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

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

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

BCE Supplementary Financial Information - Fourth Quarter 2021 Page 16

(2.3)

Total of segments measures

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

Adjusted EBITDA

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

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


	2021	2020
Net earnings	2,892	2,699
Severance, acquisition and other costs	209	116
Depreciation	3,627	3,475
Amortization	982	929
Finance costs
Interest expense	1,082	1,110
Interest on post-employment benefit obligations	20	46
Impairment of assets	197	472
Other (income) expense	(160)	194
Income taxes	1,044	792
Net earnings from discountinued operations (net of income taxes)	-	(226)
Adjusted EBITDA	9,893	9,607

(2.4)

Capital management measures

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

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

Net debt leverage ratio

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

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

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Adjusted EBITDA to adjusted net interest expense ratio

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

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

(2.5)

Supplementary financial measures

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

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

(3)	Key performance indicators (KPIs)

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

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

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

Mobile phone blended ARPU is 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

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