Exhibit 99.2

 

ADVANCING HOW CANADIANS CONNECT WITH EACH OTHER AND THE WORLD ANNUAL REPORT 2021    

ADVANCING HOW CANADIANS CONNECT WITH EACH OTHER AND THE WORLD ANNUAL REPORT 2021 BELL’S PURPOSE AND STRATEGIC IMPERATIVES Our purpose is to advance how Canadians connect with each other and the world. The Bell team is accelerating our positive momentum with unmatched investments in our networks, services and content to benefit all Bell stakeholders and support Canada’s recovery while building a sustainable future as we move forward together. Build the Drive growth with Deliver the most best networks innovative services compelling content Continuing to enhance our key competitive Leveraging our leading networks to Taking a unified approach across our advantage with a focus on delivering the provide truly differentiated media and distribution assets to deliver leading broadband fibre and wireless communications services to Canadians the content Canadians want the most. networks in locations large and small. and drive revenue growth. Engage and invest in Champion customer Operate with agility our people and create experience and cost efficiency a sustainable future Making it easier for customers to do Underscoring a focus on operational Strengthening our leading workplace business with Bell at every level, from excellence and cost discipline throughout culture, recognizing that Bell’s success sales to installation to ongoing support. every part of our business. requires a dynamic and engaged team that is committed to the highest environmental, social and governance (ESG) standards.

 

BCE INC. 2021 ANNUAL REPORT  |  1

2 | BCE INC. 2021 ANNUAL REPORT    

 

2  |  BCE INC. 2021 ANNUAL REPORT

OUR FINANCIAL PERFORMANCE Network and service innovation supports recovery and growth Bell continued to adapt to keep Canadians connected throughout 2021, with the Bell team delivering market-leading innovations that are laying the foundation for long-term success while providing sustainable dividend growth for our shareholders. 2021 FINANCIAL PERFORMANCE    ACTUAL TARGET Revenue growth * 2.5% 2%–5% Adjusted EBITDA growth (1) * 3.0% 2%–5% Net earnings growth * 7.2% n/a Capital intensity (2) 20.6% 18%–20% Net earnings per share (EPS) growth * 8.3% n/a Adjusted EPS growth (1) * 5.6% 1%–6% Cash flows from operating activities $8,008 n/a Free cash flow ($ millions) (1) $2,995 $2,850–$3,200 * Compared to 2020 DRIVING GROWTH IN SHAREHOLDER VALUE (1) Adjusted EBITDA is a total of segments measure, adjusted EPS is a non-GAAP ratio and free cash flow is a non-GAAP financial measure. These financial measures do not have any standardized meaning under International Financial Reporting Standards (IFRS). Therefore, they are unlikely to be comparable to similar measures presented by other issuers. We define adjusted EPS as adjusted net earnings per BCE common share. Refer to section 11, Non-GAAP financial measures, other financial measures and key performance indicators (KPIs) of the BCE 2021 MD&A, on pages 121 to 125 of the BCE 2021 Annual Report for more information on these measures including, in the case of adjusted EBITDA, a reconciliation to net earnings being the most comparable IFRS financial measure and for free cash flow, a reconciliation to cash flows from operating activities being the most comparable IFRS financial measure. (2) Capital intensity is defined as capital expenditures divided by operating revenues. (3) The change in BCE’s common share price for a specified period plus BCE common share dividends reinvested, divided by BCE’s common share price at the beginning of the period.

 

BCE INC. 2021 ANNUAL REPORT  |  3

FINANCIAL AND OPERATIONAL HIGHLIGHTS Connecting Canadians with the best in broadband communications The Bell team met the challenges of an evolving COVID situation to support our customers and lead the way in Canadian communications, with consistent improvement on customer experience and the fastest networks to deliver outstanding financial and operational results. Our strong focus on innovation and investment enabled solid subscriber growth in retail Internet, IPTV and wireless, while ensuring we exceeded our broadband network expansion targets. We’re also supporting Canada’s digital future by building the next-generation broadband fibre and wireless infrastructure that will enhance our delivery of world-class solutions for consumers, business customers and governments. BCE RETAIL SUBSCRIBERS (millions) 2021 2020 Change Mobile phone 9.46 9.16 +3.2% Mobile connected device 2.25 2.06 +9.4% Internet (1) 3.86 3.70 +4.2% TV (1) 2.74 2.74 (0.1%) Residential telephone services (1) (2) 2.30 2.48 (7.5%) Total (1) 20.60 20.15 +2.3% (1) Excludes wholesale subscribers. (2) Excludes business telephone services.

 

4  |  BCE INC. 2021 ANNUAL REPORT

FINANCIAL AND OPERATIONAL HIGHLIGHTS Growing our business while supporting Canada’s economic recovery Strong strategic execution by the Bell team enabled us to achieve our revenue and adjusted EBITDA targets for the year while continuing to fund our network expansion plans. Our historic capital expenditure acceleration program is bringing broadband connections to more urban and rural locations while delivering innovative services and the most compelling content that Canadians want. OPERATING REVENUES ($ millions) OPERATING REVENUES BY SEGMENT    NET EARNINGS ATTRIBUTABLE    NET EARNINGS ADJUSTED EBITDA TO COMMON SHAREHOLDERS ADJUSTED NET EARNINGS(1) ($ millions) ($ millions) ($ millions) ($ millions) 2021 $2,892 +7.2% 2021 $9,893 +3.0% 2021 $2,709 +8.4% 2021 $2,895 +6.0% 2020 $2,699 2020 $9,607 2020 $2,498 2020 $2,730    CASH FLOWS FROM    OPERATING ACTIVITIES FREE CASH FLOW CAPITAL EXPENDITURES ($ millions) ($ millions) ($ millions) 2021 $8,008 +3.3% 2021 $2,995 (10.5%) 2021 $4,837 +15.1% 2020 $7,754 2020 $3,348 2020 $4,202    (1) Adjusted net earnings is a non-GAAP financial measure. This financial measure does not have any standardized meaning under IFRS. Therefore, it is unlikely to be comparable to similar measures presented by other issuers. Refer to section 11, Non-GAAP financial measures, other financial measures and key performance indicators (KPIs) of the BCE 2021 MD&A, on pages 121 to 125 of the BCE 2021 Annual Report for more information on this measure including a reconciliation of adjusted net earnings to net earnings attributable to common shareholders being the most comparable IFRS financial measure.    

 

BCE INC. 2021 ANNUAL REPORT  |  5

MESSAGE FROM THE CHAIR OF THE BOARD Accelerating positive momentum towards a better future Throughout the COVID-19 pandemic, BCE has maintained a clear focus on building positive momentum for all Canadians. In 2021, our actions continued to drive positive social and economic changes, helping connect more customers, communities, employees, partners and shareholders to a better future. As Canada’s leading builder of communications networks since 1880, Bell has a long history of connecting Canadians to the people and things that matter. Recognizing the important role our networks and services have in the social and economic well-being of Canadians, Bell accelerated capital expenditures in fibre, rural broadband and 5G wireless networks in 2021, delivering the world’s best communications technologies to more homes and businesses than originally projected. Our accelerated capital expenditures are set to continue throughout 2022. Bell’s overriding purpose is to advance how Canadians connect with each other and the world. Increased capital spending on accelerated network deployments, the acquisition of additional wireless spectrum auctioned by the Government of Canada and ongoing support for rural broadband initiatives are all in line with our purpose, as are investments we are making to achieve our ESG targets. BELL FOR BETTER: ESG LEADERSHIP For the BCE group of companies, our environmental, social and governance (ESG) leadership defines who we are, what we stand for and what we do. Launched in 2021, our Bell for Better commitments to help build a better world, better communities and a better workplace encapsulate our approach to ESG. As one of Canada’s largest employers and with a presence in communities across the country, we have always excelled at driving economic growth and important societal changes that improve quality of life, deliver new opportunities and support responsible and sustainable growth. We are proud to continue this tradition. Along with delivering networks and services that reduce harmful emissions and support a greener economy, Bell is the first communications company in North America to receive ISO 50001 certification for energy management. Consistently ranked as one of Canada’s greenest employers, we continued building on our successful environmental initiatives with new commitments announced in 2021: to achieve carbon neutral operations across Bell by 2025, and to move forward with the adoption of science-based targets to reduce greenhouse gas emissions by 2030 in line with the Paris Agreement. Bell also continues to gain widespread recognition as a top employer across a range of categories, including as one of Canada’s most family-friendly employers and one of the best workplaces for young people and young professionals. Named one of Canada’s Top Diversity Employers for the fifth consecutive year in 2021, we are always building support for DEI within Bell and elsewhere, for gender diversity and Black, Indigenous and People of Colour (BIPOC) and LGBTQ+ communities. Our flagship commitment to addressing mental health now stands at $155 million by 2025, in support for Bell Let’s Talk initiatives – including anti-stigma, community access and care, research and workplace programs. This includes increased support in 2021 for the ground-breaking Bell Let’s Talk Diversity Fund and the Bell Let’s Talk Post-Secondary Fund.

 

6  |  BCE INC. 2021 ANNUAL REPORT

MESSAGE FROM THE CHAIR OF THE BOARD Accelerating positive momentum towards a better future Throughout the COVID-19 pandemic, BCE has maintained a clear focus on building positive momentum for all Canadians. In 2021, our actions continued to drive positive social and economic changes, helping connect more customers, communities, employees, partners and shareholders to a better future. As Canada’s leading builder of communications networks since 1880, Bell has a long history of connecting Canadians to the people and things that matter. Recognizing the important role our networks and services have in the social and economic well-being of Canadians, Bell accelerated capital expenditures in fibre, rural broadband and 5G wireless networks in 2021, delivering the world’s best communications technologies to more homes and businesses than originally projected. Our accelerated capital expenditures are set to continue throughout 2022. Bell’s overriding purpose is to advance how Canadians connect with each other and the world. Increased capital spending on accelerated network deployments, the acquisition of additional wireless spectrum auctioned by the Government of Canada and ongoing support for rural broadband initiatives are all in line with our purpose, as are investments we are making to achieve our ESG targets. BELL FOR BETTER: ESG LEADERSHIP For the BCE group of companies, our environmental, social and governance (ESG) leadership defines who we are, what we stand for and what we do. Launched in 2021, our Bell for Better commitments to help build a better world, better communities and a better workplace encapsulate our approach to ESG. As one of Canada’s largest employers and with a presence in communities across the country, we have always excelled at driving economic growth and important societal changes that improve quality of life, deliver new opportunities and support responsible and sustainable growth. We are proud to continue this tradition. Along with delivering networks and services that reduce harmful emissions and support a greener economy, Bell is the first communications company in North America to receive ISO 50001 certification for energy management. Consistently ranked as one of Canada’s greenest employers, we continued building on our successful environmental initiatives with new commitments announced in 2021: to achieve carbon neutral operations across Bell by 2025, and to move forward with the adoption of science-based targets to reduce greenhouse gas emissions by 2030 in line with the Paris Agreement. Bell also continues to gain widespread recognition as a top employer across a range of categories, including as one of Canada’s most family-friendly employers and one of the best workplaces for young people and young professionals. Named one of Canada’s Top Diversity Employers for the fifth consecutive year in 2021, we are always building support for DEI within Bell and elsewhere, for gender diversity and Black, Indigenous and People of Colour (BIPOC) and LGBTQ+ communities. Our flagship commitment to addressing mental health now stands at $155 million by 2025, in support for Bell Let’s Talk initiatives – including anti-stigma, community access and care, research and workplace programs. This includes increased support in 2021 for the ground-breaking Bell Let’s Talk Diversity Fund and the Bell Let’s Talk Post-Secondary Fund. SUSTAINABLE GROWTH ENABLED BY A STRONG FINANCIAL PERFORMANCE Bell’s clear strategic roadmap and focus on investing in growth opportunities has enabled us to help millions of Canadians manage through the pandemic, as well as to build momentum for a strong recovery and a more positive future for all our stakeholders. This of course included delivering value to our shareholders. In this regard, backed by the efforts of our strong management team, BCE’s quarterly results improved sequentially throughout 2021 as we adapted to the ongoing impacts of COVID-19. Notably, BCE revenue was back to approximately 99% of pre-pandemic levels in 2021. Our healthy free cash flow generation together with a strong balance sheet supported accelerated capital expenditures totalling $4.8 billion in 2021 as well as our $2.07 billion acquisition of high-value 3500 MHz wireless spectrum which is critical to enabling the full potential of 5G. And our sound financial position allowed us to increase our common share dividend 5.1% to $3.68 effective with the Q1 2022 payment on April 15, 2022, the 14th consecutive year BCE has increased the dividend by at least 5%. BOARD UPDATE All of us on the BCE Board of Directors were saddened by the passing of Thomas Richards in October 2021 and, more recently, Ian Greenberg in January. Tom was a seasoned technology and telecom executive who brought a wealth of experience and leadership insights to the Board after joining in 2020 and serving into 2021. Ian was a role model in media innovation, corporate leadership and community service and a valued member of the Board since Astral Media’s acquisition by BCE in 2013, inspiring all of us with his integrity, insight and optimism for the future. Integrity and optimism are also guiding our DEI initiatives across the BCE group of companies, and in 2021 we adopted a new target of minimum 35% gender-diverse directors on the BCE Board. As your Chair and on behalf of every member of the BCE Board, I thank shareholders for your support and confidence in our great company as we strive to achieve a better and more sustainable future. Gordon M. Nixon Chair of the Board BCE Inc.

 

BCE INC. 2021 ANNUAL REPORT  |  7

MESSAGE FROM THE CHAIR OF THE BOARD Accelerating positive momentum towards a better future Throughout the COVID-19 pandemic, BCE has maintained a clear focus on building positive momentum for all Canadians. In 2021, our actions continued to drive positive social and economic changes, helping connect more customers, communities, employees, partners and shareholders to a better future. As Canada’s leading builder of communications networks since 1880, Bell has a long history of connecting Canadians to the people and things that matter. Recognizing the important role our networks and services have in the social and economic well-being of Canadians, Bell accelerated capital expenditures in fibre, rural broadband and 5G wireless networks in 2021, delivering the world’s best communications technologies to more homes and businesses than originally projected. Our accelerated capital expenditures are set to continue throughout 2022. Bell’s overriding purpose is to advance how Canadians connect with each other and the world. Increased capital spending on accelerated network deployments, the acquisition of additional wireless spectrum auctioned by the Government of Canada and ongoing support for rural broadband initiatives are all in line with our purpose, as are investments we are making to achieve our ESG targets. BELL FOR BETTER: ESG LEADERSHIP For the BCE group of companies, our environmental, social and governance (ESG) leadership defines who we are, what we stand for and what we do. Launched in 2021, our Bell for Better commitments to help build a better world, better communities and a better workplace encapsulate our approach to ESG. As one of Canada’s largest employers and with a presence in communities across the country, we have always excelled at driving economic growth and important societal changes that improve quality of life, deliver new opportunities and support responsible and sustainable growth. We are proud to continue this tradition. Along with delivering networks and services that reduce harmful emissions and support a greener economy, Bell is the first communications company in North America to receive ISO 50001 certification for energy management. Consistently ranked as one of Canada’s greenest employers, we continued building on our successful environmental initiatives with new commitments announced in 2021: to achieve carbon neutral operations across Bell by 2025, and to move forward with the adoption of science-based targets to reduce greenhouse gas emissions by 2030 in line with the Paris Agreement. Bell also continues to gain widespread recognition as a top employer across a range of categories, including as one of Canada’s most family-friendly employers and one of the best workplaces for young people and young professionals. Named one of Canada’s Top Diversity Employers for the fifth consecutive year in 2021, we are always building support for DEI within Bell and elsewhere, for gender diversity and Black, Indigenous and People of Colour (BIPOC) and LGBTQ+ communities. Our flagship commitment to addressing mental health now stands at $155 million by 2025, in support for Bell Let’s Talk initiatives – including anti-stigma, community access and care, research and workplace programs. This includes increased support in 2021 for the ground-breaking Bell Let’s Talk Diversity Fund and the Bell Let’s Talk Post-Secondary Fund. SUSTAINABLE GROWTH ENABLED BY A STRONG FINANCIAL PERFORMANCE Bell’s clear strategic roadmap and focus on investing in growth opportunities has enabled us to help millions of Canadians manage through the pandemic, as well as to build momentum for a strong recovery and a more positive future for all our stakeholders. This of course included delivering value to our shareholders. In this regard, backed by the efforts of our strong management team, BCE’s quarterly results improved sequentially throughout 2021 as we adapted to the ongoing impacts of COVID-19. Notably, BCE revenue was back to approximately 99% of pre-pandemic levels in 2021. Our healthy free cash flow generation together with a strong balance sheet supported accelerated capital expenditures totalling $4.8 billion in 2021 as well as our $2.07 billion acquisition of high-value 3500 MHz wireless spectrum which is critical to enabling the full potential of 5G. And our sound financial position allowed us to increase our common share dividend 5.1% to $3.68 effective with the Q1 2022 payment on April 15, 2022, the 14th consecutive year BCE has increased the dividend by at least 5%. BOARD UPDATE All of us on the BCE Board of Directors were saddened by the passing of Thomas Richards in October 2021 and, more recently, Ian Greenberg in January. Tom was a seasoned technology and telecom executive who brought a wealth of experience and leadership insights to the Board after joining in 2020 and serving into 2021. Ian was a role model in media innovation, corporate leadership and community service and a valued member of the Board since Astral Media’s acquisition by BCE in 2013, inspiring all of us with his integrity, insight and optimism for the future. Integrity and optimism are also guiding our DEI initiatives across the BCE group of companies, and in 2021 we adopted a new target of minimum 35% gender-diverse directors on the BCE Board. As your Chair and on behalf of every member of the BCE Board, I thank shareholders for your support and confidence in our great company as we strive to achieve a better and more sustainable future. Gordon M. Nixon Chair of the Board BCE Inc. MESSAGE FROM THE PRESIDENT AND CEO Stepping up for customers and communities For Bell, customers are at the centre of everything we do. Attracting, winning and retaining customers is essential to achieving our purpose: to advance how Canadians connect with each other and the world. Bell is Canada’s leading communications company, and as the COVID-19 pandemic continued throughout 2021, we moved forward with initiatives to better connect, inform and entertain Canadians while also investing to support Canada’s pandemic recovery and future growth. Guided by six purpose-driven strategic imperatives – build the best networks; drive growth with innovative services; deliver the most compelling content; champion customer experience; operate with agility and cost efficiency; and engage and invest in our people and create a sustainable future – Bell is better positioned than ever to drive positive change forward. ACCELERATING INVESTMENTS IN NETWORKS AND DRIVING INNOVATION To help Canadians and our business recover from COVID-19 and grow well into the future, Bell increased our investments to historic levels as part of a two-year acceleration launched in 2021. Enabled by our solid financial position and a stable policy and regulatory environment, we spent an unprecedented $4.8 billion in capital expenditures for fibre, 5G and rural broadband deployments, expanding the availability of better broadband to 7.2 million homes and businesses in Atlantic Canada, Ontario, Québec and Manitoba. This includes meeting our target of reaching 1 million homes and businesses in hundreds of rural communities with our Wireless Home Internet service a full year ahead of schedule. Our ongoing fibre expansion provides more Canadians with access to the world’s best Internet technology, supporting remote work and online learning as well as providing the advanced connectivity that businesses, organizations and communities need. Deploying more pure fibre connections in urban and rural communities alike also expands the availability of our innovative Fibe TV and other digital services, and in 2021, we added Internet subscribers at levels not seen in several years, supporting our plan to accelerate fibre deployments even more aggressively in 2022. We are equally committed to driving investment in wireless services. Accelerating investments in our 5G network, the most awarded in Canada, also ensures more of our customers can access wireless services that are among the best in the world. Now reaching more than 70% of the national population, the fast speed of Bell 5G connections is set to become even faster and their latency lower as we increase coverage and deploy newly-acquired 3500 MHz spectrum in 2022. Overall, our accelerated investments mean that innovative applications and solutions for customers that rely on converged fibre and 5G networks are becoming more widely available. This includes TSN 5G View / Vision 5G RDS launched in 2021, as well as new services for Canadian businesses, such as Smart Supply Chain powered by Bell IoT Smart Connect. We have also entered into partnerships with Amazon Web Services (AWS), Google Cloud and others that will expand the use of multi-access edge computing (MEC) and other next-generation technologies. CHAMPIONING CUSTOMER EXPERIENCE Making it easier for customers to do business with Bell, we continue to develop self-serve tools like our award-winning MyBell, Virgin Plus and Lucky Mobile My Account apps. At the same time, we are adopting artificial intelligence (AI) and machine learning capabilities to enhance how the Bell team works with customers and expand the availability of innovative services like Move Valet, Self Install and, new in 2021, Virtual Repair. Every initiative continues to drive better customer service experiences. According to the 2020–2021 annual report from Canada’s Commission for Complaints for Telecom-television Services (CCTS), we led the industry for a sixth consecutive year in significantly reducing customer complaints. In fact, Bell had a decline of 8% overall while complaints across the industry saw an increase of 9%.

 

8  |  BCE INC. 2021 ANNUAL REPORT

MESSAGE FROM THE CHAIR OF THE BOARD Accelerating positive momentum towards a better future Throughout the COVID-19 pandemic, BCE has maintained a clear focus on building positive momentum for all Canadians. In 2021, our actions continued to drive positive social and economic changes, helping connect more customers, communities, employees, partners and shareholders to a better future. As Canada’s leading builder of communications networks since 1880, Bell has a long history of connecting Canadians to the people and things that matter. Recognizing the important role our networks and services have in the social and economic well-being of Canadians, Bell accelerated capital expenditures in fibre, rural broadband and 5G wireless networks in 2021, delivering the world’s best communications technologies to more homes and businesses than originally projected. Our accelerated capital expenditures are set to continue throughout 2022. Bell’s overriding purpose is to advance how Canadians connect with each other and the world. Increased capital spending on accelerated network deployments, the acquisition of additional wireless spectrum auctioned by the Government of Canada and ongoing support for rural broadband initiatives are all in line with our purpose, as are investments we are making to achieve our ESG targets. BELL FOR BETTER: ESG LEADERSHIP For the BCE group of companies, our environmental, social and governance (ESG) leadership defines who we are, what we stand for and what we do. Launched in 2021, our Bell for Better commitments to help build a better world, better communities and a better workplace encapsulate our approach to ESG. As one of Canada’s largest employers and with a presence in communities across the country, we have always excelled at driving economic growth and important societal changes that improve quality of life, deliver new opportunities and support responsible and sustainable growth. We are proud to continue this tradition. Along with delivering networks and services that reduce harmful emissions and support a greener economy, Bell is the first communications company in North America to receive ISO 50001 certification for energy management. Consistently ranked as one of Canada’s greenest employers, we continued building on our successful environmental initiatives with new commitments announced in 2021: to achieve carbon neutral operations across Bell by 2025, and to move forward with the adoption of science-based targets to reduce greenhouse gas emissions by 2030 in line with the Paris Agreement. Bell also continues to gain widespread recognition as a top employer across a range of categories, including as one of Canada’s most family-friendly employers and one of the best workplaces for young people and young professionals. Named one of Canada’s Top Diversity Employers for the fifth consecutive year in 2021, we are always building support for DEI within Bell and elsewhere, for gender diversity and Black, Indigenous and People of Colour (BIPOC) and LGBTQ+ communities. Our flagship commitment to addressing mental health now stands at $155 million by 2025, in support for Bell Let’s Talk initiatives – including anti-stigma, community access and care, research and workplace programs. This includes increased support in 2021 for the ground-breaking Bell Let’s Talk Diversity Fund and the Bell Let’s Talk Post-Secondary Fund. SUSTAINABLE GROWTH ENABLED BY A STRONG FINANCIAL PERFORMANCE Bell’s clear strategic roadmap and focus on investing in growth opportunities has enabled us to help millions of Canadians manage through the pandemic, as well as to build momentum for a strong recovery and a more positive future for all our stakeholders. This of course included delivering value to our shareholders. In this regard, backed by the efforts of our strong management team, BCE’s quarterly results improved sequentially throughout 2021 as we adapted to the ongoing impacts of COVID-19. Notably, BCE revenue was back to approximately 99% of pre-pandemic levels in 2021. Our healthy free cash flow generation together with a strong balance sheet supported accelerated capital expenditures totalling $4.8 billion in 2021 as well as our $2.07 billion acquisition of high-value 3500 MHz wireless spectrum which is critical to enabling the full potential of 5G. And our sound financial position allowed us to increase our common share dividend 5.1% to $3.68 effective with the Q1 2022 payment on April 15, 2022, the 14th consecutive year BCE has increased the dividend by at least 5%. BOARD UPDATE All of us on the BCE Board of Directors were saddened by the passing of Thomas Richards in October 2021 and, more recently, Ian Greenberg in January. Tom was a seasoned technology and telecom executive who brought a wealth of experience and leadership insights to the Board after joining in 2020 and serving into 2021. Ian was a role model in media innovation, corporate leadership and community service and a valued member of the Board since Astral Media’s acquisition by BCE in 2013, inspiring all of us with his integrity, insight and optimism for the future. Integrity and optimism are also guiding our DEI initiatives across the BCE group of companies, and in 2021 we adopted a new target of minimum 35% gender-diverse directors on the BCE Board. As your Chair and on behalf of every member of the BCE Board, I thank shareholders for your support and confidence in our great company as we strive to achieve a better and more sustainable future. Gordon M. Nixon Chair of the Board BCE Inc. MESSAGE FROM THE PRESIDENT AND CEO Stepping up for customers and communities For Bell, customers are at the centre of everything we do. Attracting, winning and retaining customers is essential to achieving our purpose: to advance how Canadians connect with each other and the world. Bell is Canada’s leading communications company, and as the COVID-19 pandemic continued throughout 2021, we moved forward with initiatives to better connect, inform and entertain Canadians while also investing to support Canada’s pandemic recovery and future growth. Guided by six purpose-driven strategic imperatives – build the best networks; drive growth with innovative services; deliver the most compelling content; champion customer experience; operate with agility and cost efficiency; and engage and invest in our people and create a sustainable future – Bell is better positioned than ever to drive positive change forward. ACCELERATING INVESTMENTS IN NETWORKS AND DRIVING INNOVATION To help Canadians and our business recover from COVID-19 and grow well into the future, Bell increased our investments to historic levels as part of a two-year acceleration launched in 2021. Enabled by our solid financial position and a stable policy and regulatory environment, we spent an unprecedented $4.8 billion in capital expenditures for fibre, 5G and rural broadband deployments, expanding the availability of better broadband to 7.2 million homes and businesses in Atlantic Canada, Ontario, Québec and Manitoba. This includes meeting our target of reaching 1 million homes and businesses in hundreds of rural communities with our Wireless Home Internet service a full year ahead of schedule. Our ongoing fibre expansion provides more Canadians with access to the world’s best Internet technology, supporting remote work and online learning as well as providing the advanced connectivity that businesses, organizations and communities need. Deploying more pure fibre connections in urban and rural communities alike also expands the availability of our innovative Fibe TV and other digital services, and in 2021, we added Internet subscribers at levels not seen in several years, supporting our plan to accelerate fibre deployments even more aggressively in 2022. We are equally committed to driving investment in wireless services. Accelerating investments in our 5G network, the most awarded in Canada, also ensures more of our customers can access wireless services that are among the best in the world. Now reaching more than 70% of the national population, the fast speed of Bell 5G connections is set to become even faster and their latency lower as we increase coverage and deploy newly-acquired 3500 MHz spectrum in 2022. Overall, our accelerated investments mean that innovative applications and solutions for customers that rely on converged fibre and 5G networks are becoming more widely available. This includes TSN 5G View / Vision 5G RDS launched in 2021, as well as new services for Canadian businesses, such as Smart Supply Chain powered by Bell IoT Smart Connect. We have also entered into partnerships with Amazon Web Services (AWS), Google Cloud and others that will expand the use of multi-access edge computing (MEC) and other next-generation technologies. CHAMPIONING CUSTOMER EXPERIENCE Making it easier for customers to do business with Bell, we continue to develop self-serve tools like our award-winning MyBell, Virgin Plus and Lucky Mobile My Account apps. At the same time, we are adopting artificial intelligence (AI) and machine learning capabilities to enhance how the Bell team works with customers and expand the availability of innovative services like Move Valet, Self Install and, new in 2021, Virtual Repair. Every initiative continues to drive better customer service experiences. According to the 2020–2021 annual report from Canada’s Commission for Complaints for Telecom-television Services (CCTS), we led the industry for a sixth consecutive year in significantly reducing customer complaints. In fact, Bell had a decline of 8% overall while complaints across the industry saw an increase of 9%. CREATING AND DELIVERING COMPELLING CONTENT FOR CANADIANS Increasingly competing with large global content providers, Bell Media remains focused on creating and delivering content that reflects the communities we serve. With new and award-winning original series, documentaries and Canada’s top-rated national and local news programs, CTV, CTV News, TSN and RDS continued to be top choices for Canadians in 2021. In addition, our entertainment specialty channels CTV Comedy, Discovery and CTV Drama ranked as the top three this past broadcast year for the first time. Our Noovo network also emerged as a much-welcomed competitive alternative for customers in Québec as we continue to reinforce our commitment to deliver great content across all genres for French-language audiences. Building on the popularity of our on-demand digital services and apps – including ctv.ca, noovo.ca, Crave, TSN Direct and RDS Direct, and iHeartRadio – we also launched the ad-supported NoovoMoi.ca video platform in 2021 and, more recently, the noovo.info news service. INVESTING IN OUR TEAM Facing many challenges due to the COVID-19 pandemic, Bell team members remain as engaged as ever in helping move our business forward, embracing new ways of working while continuing to improve customer experiences and provide the critical connectivity, support and information that our customers need. In 2021, we continued to provide opportunities for our team members to develop and apply skills needed to succeed. We also expanded mental health support and fostered a more inclusive and accessible workplace, strengthening a culture that reflects values we share with the communities we serve. By investing in our people, we continue to build on a legacy that has been a key to Bell’s success for 142 years – an ability to help Canadians recover from crises and become stronger than before. Moving forward with leading ESG initiatives and Bell for Better commitments, we are all helping to create a thriving, prosperous and more connected world. On behalf of the entire Bell team, I thank all of our shareholders for your ongoing support as we continue to advance how Canadians connect with each other and the world. Mirko Bibic President and Chief Executive Officer BCE Inc. and Bell Canada

 

BCE INC. 2021 ANNUAL REPORT  |  9

STRATEGIC IMPERATIVE 1 Build the best networks Bell has always been a builder from our earliest days, starting with the telephone and continuing to bring generations of Canadians together with the latest technology. Today, Bell is delivering the future to customers with an unmatched infrastructure investment in the best broadband fibre and wireless technologies, including the country’s best 5G network.    Bell’s world-class networks have been a difference-maker throughout the evolving COVID crisis, providing reliable telecommunications infrastructure that is contributing to economic recovery and supporting remote work, online learning and critical connections for businesses, organizations and communities. Even with unprecedented demand, Bell’s wireless and wireline networks have consistently delivered over 99.99% availability, enabling Canadians to connect and do business with the world and positioning us for success in the digital economy. In 2021, Bell advanced our boldest buildout program ever with additional planned capital expenditures of $1.7 billion over the next two years in network expansion of broadband fibre, Wireless Home Internet (WHI) and mobile 5G. This capital expenditure acceleration is in addition to the approximately $4 billion in capital expenditure that Bell typically spends on broadband network infrastructure and expansion each year. Bell’s historic capital expenditures are already delivering faster and better connectivity to more Canadians. With the largest and fastest-growing fibre footprint in Canada, in 2021 our network reached more rural communities in Atlantic Canada, Québec, Ontario and Manitoba. The Bell team completed a major undersea cable replacement project in the Bay of Fundy, a critical piece of fibre infrastructure, which provides Internet and voice services to communities across Atlantic Canada. 10 | BCE INC. 2021 ANNUAL REPORT Bell surpassed our 2021 network expansion targets, delivering approximately 1.1 million new fibre and Wireless Home Internet locations, and expanding mobile 5G coverage to more than 70% of the national population. Notably, Bell completed our Wireless Home Internet buildout reaching our target of 1 million households one year ahead of schedule. In Québec, Bell continued to roll out high-speed Internet as part of Operation High Speed, a partnership with the Canadian and Québec governments to provide 100% fibre Internet connections to more than 30,000 homes and businesses in nearly 100 communities. Building on Bell’s early 5G launch in Montréal, most regions of Québec now have 5G access following Bell’s ambitious expansion to municipalities across the province. In Canada’s North, Bell subsidiary Northwestel is bringing full fibre high-speed Internet access to every land-served community in the northern territories through the Every Community project. Agreements with low Earth orbit (LEO) satellite companies Telesat and OneWeb are exploring the further expansion of high-speed Internet to remote communities throughout the North, bridging the digital divide.

 

10  |  BCE INC. 2021 ANNUAL REPORT

GOING FARTHER AND FASTER Not only are we reaching more Canadians, we’re delivering speeds that are enabling smart cities and businesses, immersive video and gaming experiences, remote telehealth, self-driving vehicles, and new applications that will change the way we work, live and play. PCMag again ranked Bell’s 4G and 5G mobile networks as the fastest in the country in its latest national network performance tests while Global Wireless Solutions (GWS) ranked Bell 5G as the nation’s best. With more than 2,700 central office locations across the country, Bell has more network points of presence than any other carrier in Canada, a key enabler for multi-access edge computing (MEC) that brings the computing power, processing and storage potential of 5G closer to developers and end users. These 5G connections are poised to become even better in 2022 as we enhance the network’s capabilities using 3500 MHz spectrum acquired in 2021. This investment will not only drive Bell’s ongoing leadership in 5G, it will help bridge the digital    We’re delivering broadband to more Canadians, surpassing our accelerated network expansion targets in 2021, passing 1 million locations with Wireless Home Internet one year ahead of schedule and expanding our direct fibre footprint to communities large and small across the country. divide with enhanced broadband access for more rural and remote communities and offer infinite service possibilities for consumers and business users, from augmented reality and machine learning to smart homes, vehicles and cities. Bell built on 5G research partnerships at Western University and Université de Sherbrooke to support IoT applications, innovative manufacturing and smart energy management as part of a new project with The PIER (Port Innovation, Engagement, and Research) and Halifax Port Authority to help shape the future of the transportation, supply chain and logistics industries in Canada. Our ongoing network expansion across the board is also delivering clear results for Bell, with industry-leading net subscriber Internet additions reaching levels not seen in several years. It’s also opening the door to new innovations and future growth opportunities for Bell and its customers across the country. Bell continues to advance our boldest buildout program ever with historic planned capital expenditures to deliver faster and better connectivity to more Canadians.

 

BCE INC. 2021 ANNUAL REPORT  |  11

STRATEGIC IMPERATIVE 2 Drive growth with innovative services Bell is enabling success in an increasingly digital world, bringing more innovation to Canadian homes and businesses on the best networks available. Our historic infrastructure investment means that more people have access to services and tools to grow their business, share information, connect remote communities, be entertained and capitalize on new ideas to improve our world.    This includes fast home and mobile Internet access, industry-leading Wi-Fi and Smart Home products, and the next generation of remote work, security and cloud solutions. Throughout the COVID crisis, Bell not only kept Canadians connected and informed with outstanding reliability, we continued to deliver new innovations built on the strength of our leading broadband wireless and 5G networks. THE 5G ADVANTAGE As the most awarded 5G network in Canada, Bell continued to drive the next generation of mobile innovation, and is in a great position to capture more IoT and next-generation solutions revenue through the convergence of 5G and fibre. Bell 5G capitalizes on the power of both wireless and fibre communications, and with 94% of Bell’s cell sites connected to its fibre network and more network points of presence than any other carrier, Bell 5G leads in providing the low latency critical to real-time applications ranging from remote surgery to ultra-HD video. The speed and capacity of Bell’s 5G network, coupled with our unparalleled fibre infrastructure and rapidly expanding network footprint, is helping us take the country’s top-ranked 5G service even further. The result is a future with infinite service possibilities for consumers and business users, from augmented reality and machine learning to smart homes, vehicles and cities to benefit Canadians no matter where they live. INNOVATIVE PARTNERSHIPS FOR GROWTH In 2021, Bell was the first Canadian communications provider to partner with AWS to leverage MEC, building on our leadership in next-generation services for business customers and consumers across the country. This was followed by a collaboration with AWS and VMware to help organizations across Canada plan, simplify and manage their hybrid cloud transformations. Bell also joined with Google Cloud to combine our 5G network leadership with Google’s expertise in multicloud services, data analytics and AI to deliver next-generation experiences for Bell customers across Canada. A partnership with SCALE AI, a Montréal-based investment and innovation hub, is helping reduce installation time for new fibre connections by accelerating several steps in the supply chain using AI solutions. Bell is also offering a portfolio of software-as-a-service (SaaS) solutions for enterprise customers to support their digital transformations, including Smart Supply Chain powered by Bell IoT Smart Connect for fleet and supply chain operators. This secure cloud-based platform aggregates IoT and operational data, delivering a single unified view of a company’s drivers and entire fleet of vehicles, as well as other data such as the temperature of cargo, to optimize and automate tracking and management. Bell Business Markets is also simplifying and enhancing security operations for major organizations as they shift to the cloud with the launch of BSURE, a fully managed cybersecurity solution for business that combines Bell’s proven security expertise with state-of-the-art threat detection and management technology from Fortinet. Bell continues to be the most awarded 5G network in Canada, including being ranked Canada’s Fastest 5G Network for the second time in a row in the Ookla 2021 Speedtest Awards and winning top honours from GWS for best 5G network as well as PCMag recognition for fastest mobile networks (4G and 5G) overall.

 

12  |  BCE INC. 2021 ANNUAL REPORT

MAKING COMMUNITIES BETTER With Canada’s largest portfolio of IoT solutions specifically designed to empower smart city transformations, Bell is enabling the fast and secure collection of data from multiple sources for a diverse array of applications, including water leak detection, asset management, smart waste management and energy management. Working with Esri, Canada’s leading geographic information system (GIS) provider, Bell continued to collaborate on the creation of Smart City IoT solutions for municipal governments across the country. The Bell Integrated Smart City Ecosystem is helping communities of all sizes build on their existing smart city investments, adopting new pre-integrated IoT solutions to deliver seamless data solutions to city management, workers and citizens. The speed and capacity of Bell’s 5G is delivering infinite service possibilities for consumers and business users, from augmented reality and machine learning to smart homes, vehicles and cities to benefit Canadians no matter where they live. The power of 5G is delivering more innovations like the expansion of TSN 5G View / Vision 5G RDS, the exclusive in-app feature for TSN’s coverage of Toronto Raptors home games. ENGAGING CONSUMERS AT HOME AND ON THE GO Bell continues to be Canada’s largest TV and Internet service provider, and the ongoing expansion of our fibre connections is contributing to subscriber growth and increased customer satisfaction. We continued to expand the availability of our products and services to recognize the multiple devices consumers use at home and on the go. In addition to a strong lineup of leading smartphones, devices, modems, apps and other products, in 2021 Bell launched the new Home Hub 4000 featuring powerful Wi-Fi 6 technology for fibre customers in Ontario and Québec. The power of Bell’s 5G also included initiatives like the expansion of TSN 5G View / Vision 5G RDS to Toronto Raptors home games in addition to regional coverage of the Montréal Canadiens and Toronto Maple Leafs. Our 5G collaborations continued with a partnership with TikTok Canada that lets creators paint together with friends in real time while physically apart, and a new connected car partnership equipping Honda and Acura vehicles with built-in Wi-Fi hotspots powered by the Bell LTE network. Bell also continued to deliver unparalleled value to Canadians by further reducing monthly pricing for Virgin Plus mobile data plans. The price reductions also achieved the federal government’s target of a 25% drop in wireless pricing for mid-range plans ahead of schedule.

 

BCE INC. 2021 ANNUAL REPORT  |  13

STRATEGIC IMPERATIVE 3 Deliver the most compelling content Bell Media is Canada’s #1 content creation company with premier assets in TV, radio, digital media, out-of-home advertising and leading-edge distribution platforms like Crave, Bell Fibe TV, Virgin Plus TV and Bell Satellite TV, offering a full range of options to consumers and advertisers alike.    Reflecting our focus on accelerating digital revenue growth, Bell Media launched Bell DSP, a new demand-side ad-tech platform developed with advanced advertising company Xandr. Available now to Canadian advertisers and agencies, Bell DSP delivers a world-class programmatic marketplace with increased automation and discoverability for easier media buying and more impactful results. Bell Media’s French-language network Noovo celebrated a successful first year, delivering impressive ratings growth and increased market share. Noovo Info aired its first French-language federal leaders’ debate and election night coverage, bringing new voices and fresh perspectives to the Québec news scene while working alongside CTV’s experienced news team. The partnership was a game changer for our news organization and reinforced our commitment to a unified content strategy, delivering the most compelling content to Canadians in French and English. This year also saw the launch of Noovo’s ad-supported all-in-one digital video platform Noovo.ca and the new Noovo app, offering access to live and on-demand Noovo programming as well as content from lifestyle destination NoovoMoi.ca, and specialty channels Canal D, Canal Vie, Investigation, VRAK and Z.    Bell’s investment to acquire the operations of Montréal’s Octane Racing Group Inc., promoter of the Formula 1 Canadian Grand Prix, the largest annual sports and tourism event in the country, secures this prestigious event through 2031. This transaction confirms Bell’s commitment to deliver the most compelling content across every platform, increasing our presence in the Québec media marketplace through significant investments in culture, sports and entertainment. CTV marked a milestone 20th year as Canada’s most-watched network, while CTV.ca confirmed the top spot as the country’s #1 Canadian advertising-based video-on-demand (AVOD) platform. As a leading investor in Canadian content, CTV launched its fall season with a robust lineup, featuring new original series, and specials, which join a strong roster of award-winning shows across Bell Media properties, and CTV News, Canada’s most-trusted news brand.    Bell Media is Canada’s content leader, spanning conventional, pay, specialty and streaming TV in both official languages across channels like Crave, Noovo, TSN and more.

 

14  |  BCE INC. 2021 ANNUAL REPORT

Bell Media remains Canada’s sports leader, with TSN and RDS home to the most championship events, and wall-to-wall sports action. This year Canada’s #1 sports network TSN made history with the first all-female broadcast team for an NBA game. The launch of TSN 5G View / Vision 5G RDS was an industry first, offering fans an immersive in-game sports viewing experience powered by Bell’s 5G network. With TSN 5G View / Vision 5G RDS, viewers control how they watch the action directly from their Bell smartphones, including Montreal Canadiens, Toronto Maple Leafs and Toronto Raptors home games, while enhancing TSN and RDS broadcasts with up-close access through a multitude of in-arena cameras. Bell Media’s English-language entertainment specialty channels CTV Comedy, Discovery and CTV Drama took the Top 3 spots for the first time ever this past broadcast year with A18–49; Bell Media also had the top French entertainment specialty channel this fall with Canal D. This year MuchMusic was revitalized as a digital-first network available across major social media platforms and is now the #2 Canadian broadcast brand on TikTok with more than 1 million followers, second only to TSN. Bell Media also remains Canada’s top radio broadcaster with 109 stations available through our iHeartRadio platforms. This year, Bell Media rebranded 25 stations with the launch of the BOUNCE radio network. BOUNCE joins Bell Media’s suite of national radio brands including MOVE Radio, Pure Country and Virgin. Astral, our out-of-home advertising business, continues to manage its more than 50,000 advertising locations in key urban markets nationally. Bell Media is Canada’s premier destination for the most championship sports events, original homegrown hit series and top trending reality TV.    EXPANDING CONSUMER CHOICE WITH COMPELLING CONTENT Now serving more than 2.9 million Crave subscribers, Bell continued to deliver new options with the launch of Crave Mobile, offering access to the streaming service’s unparalleled content library, and Crave Total for multiple user access across a full range of screens.    Meeting evolving audience demand for content in the format of their choice, Bell also charted an increase in time viewers spent across its roster of TV services, including Virgin Plus TV, the Bell Streamer, the Fibe TV app, and Bell Media’s AVOD platforms, CTV.ca and Noovo.ca and their apps. Bell Media original productions continued to enjoy growing success in the United States. Roku recently acquired CTV original comedy Children Ruin Everything, and Mary Makes It Easy debuted on Food Network US. Fan favourite Letterkenny is airing a new season on Hulu while Letterkenny spinoff series Shoresy was also acquired by Hulu. Canadian hit Transplant will launch its second season on NBC this year. Production resources continue to expand with the construction of new stages and production facilities at Pinewood Toronto Studios, and our partnership with Montréal’s Grandé Studios continues to bring increased resources to Québec’s French-language content creation and production communities. Bell Media was recognized with 10 awards at the 36th Prix Gémeaux Gala, an impressive 50 Canadian Screen Awards, 7 films supported by Crave and Super Écran featured at Toronto International Film Festival (TIFF), and received 36 National and local news awards from the Radio Television Digital News Association (RTDNA). Bell Media’s suite of brands cater to every type of media consumer across all platforms, in both official languages, with the most-compelling content in Canada in news, sports and entertainment.

 

BCE INC. 2021 ANNUAL REPORT  |  15

STRATEGIC IMPERATIVE 4 Champion customer experience We continue to make it easier for customers to do business with Bell at every level, from sales to installation to ongoing support. Amid a time of continuous change and uncertainty, the Bell team has been agile and efficient in delivering service improvements for our customers. Focused on championing the customer experience, we have kept Canadians connected with expansive and ongoing innovation in the ways we deliver service and support in an increasingly digital world.    Since the start of the COVID-19 crisis, Bell’s pandemic response has been focused on keeping Canadians connected and informed, while protecting the health and safety of the public, our customers and team. Our unparalleled investments in our customer experience teams and specialized service platforms are continuing to drive higher customer satisfaction levels. Canadians are relying on communications services and networks like never before. With Bell’s historic two-year $1.7 billion accelerated capital expenditures for broadband network expansion and investments in service enhancements like digital self-serve platforms, we’re offering our customers enhanced and more reliable access to Bell products and services to meet the needs of today and tomorrow.    DIGITAL SERVICE INNOVATION We’re delivering a better customer experience with a focus on safety and end-to-end service innovation, including developing leading-edge online support tools and expanding dedicated service programs like Move Valet, a next-generation platform that ensures the seamless transfer of Internet, TV and phone services when customers change their residence, to Atlantic Canada. As more customers are needing digital, at-home service delivery options that can adapt quickly and effectively to ensure business continuity and fulfill new consumer expectations in a dynamic and fast-changing economy, Bell is meeting the demand with the introduction of Virtual Repair in 2021. Building on the successful launch of self-install options for customers in 2020 in response to the COVID-19 pandemic, Virtual Repair enables residential customers in Ontario and Québec to troubleshoot and resolve common Internet, TV and phone issues with a self-serve tool right in the safety of their own home. During COVID-19 Bell accelerated its investments to expand its broadband networks to connect more Canadians in communities large and small to the most innovative services as they worked and learned from home.

 

16  |  BCE INC. 2021 ANNUAL REPORT

LEVERAGING EMERGING TECHNOLOGIES As part of Bell’s commitment to improve the customer experience, we’re continuing to adopt emerging technologies such as AI and machine learning to increase Bell’s competitiveness and ongoing service improvement. To reduce costs and increase content accessibility, the Bell Media team harnessed the power of AI with their new automated caption tool, which first launched at CTV Vancouver and CTV Calgary and is now being deployed at CTV studios across the country. Bell has also implemented Dynamic Call Routing and Intelligent Routing, which are programs that match incoming calls from customers to an agent with the right skill set to enhance the customer experience and reduce the manual work for customer service agents. Maintaining the integrity of our network infrastructure is critical to Bell’s success, ensuring our outstanding levels of network reliability and a positive customer experience. Initiated to optimize preventative maintenance jobs, Bell’s AI-powered Cable Maintenance Program is using a machine learning model to simplify dispatching for maintenance work orders. Bell’s focus on better customer experience includes leading-edge online and mobile support tools that allow customers to manage all their services and troubleshoot common issues remotely. INDUSTRY-LEADING PERFORMANCE The MyBell app was named Best Telecommunication Mobile Application of the Year at the 2021 Mobile Web Awards, demonstrating Bell’s commitment to customer experience as we continue to enhance the capabilities of our app-based self-serve options. In 2021, for the fourth year in a row, MyBell was awarded the Platinum MarCom Award as the best service app. The app experience was a top priority for Bell and our commitment to digital service excellence extends to Virgin Plus My Account, with the platform winning the 2021 Gold MarCom Award as the top app in the service category along with being named Best Telecommunications Mobile App by the Web Marketing Association. For the sixth year in a row, Bell continued to lead the national telecom industry in reducing customer complaints, according to the Commissioner for Complaints for Telecom-television Services (CCTS). While complaints to the CCTS across the industry increased by 9% for the year, customer complaints about Bell declined by 8%. Overall, Bell’s share of complaints continued its downward trend, dropping by 4% from the previous year. Virgin Mobile Canada rebranded to Virgin Plus reflecting the company’s evolving service offerings which now include Internet and app-based TV service for Members in Ontario and Québec.

 

BCE INC. 2021 ANNUAL REPORT  |  17

STRATEGIC IMPERATIVE 5 Operate with agility and cost efficiency The Bell team is dedicated to leading the way in a fast-changing Canadian communications industry, driven by a strong focus on agility and efficiency. As Canada’s largest communications company, Bell is consistently investing to improve the customer experience by delivering the best networks, services and content to a growing subscriber base while laying a foundation for long-term growth by centralizing processes and leveraging innovation to reduce costs. In 2021, Bell continued with initiatives that highlight the team’s focus on operational excellence, efficiency and cost discipline in all aspects of our planning, execution and delivery. This commitment to improving processes, tools and approaches is not only providing better results for customers, but greater efficiency in how work gets done, delivering greater cost efficiency. Bell’s agile approach was demonstrated in our response to the evolving COVID environment, as we found new ways to support employees working from home and improved on our efforts to safely serve customers in our stores and in the field – all while investing in our networks to enhance speed, reliability and access to keep Canadians connected. ACCELERATING OUR NETWORK LEADERSHIP We are able to deliver productivity improvements and cost efficiencies resulting from the expansion of Bell’s all-fibre network footprints and the service innovations enabled by new broadband technologies. Bell’s target to spend up to $14 billion in capital expenditures from 2020 through 2022 is delivering broadband connectivity to more Canadians in locations large and small. Bell’s unparalleled fibre infrastructure is the backbone of Canada’s most-awarded 5G network, driving competitive efficiencies and enabling the technology of the future, including connected homes and cars, smart cities and other advanced IoT solutions. We will continue to leverage this inter-connectedness as well as the scope and scale of our fibre footprint to ensure future operational success and value. TEAMWORK DRIVES FINANCIAL PERFORMANCE The Bell team is dedicated to delivering on our strategic focus to build the best networks and champion customer experience, delivering innovative service innovations that are reducing churn and operating costs. Our ongoing investments in next-generation tools, processes and resources are enabling customers to easily manage their accounts and services from anywhere, further boosting Bell’s strong customer experience track record. Simplifying how we do business for our customers is also streamlining our internal processes, with the added benefit of helping us achieve our objectives more cost-effectively. Across all customer touchpoints, Bell is committed to creating a seamless experience.

 

18  |  BCE INC. 2021 ANNUAL REPORT

Innovative approaches are also leading to great effectiveness on the Bell Media side as well, delivering the most compelling content, the way Canadians want, across all platforms. We are staying ahead of consumer demand by innovating and investing in new technologies to drive new opportunities for all our stakeholders. In 2021, we launched Canada’s first self-serve platform for TV and digital advertisers, offering clients unique opportunities to create innovative targeted marketing campaigns across multiple channels. BELL’S ESG APPROACH DELIVERS LASTING BENEFITS Bell’s ESG approach is not only making a positive difference in our communities and our world, it’s also having a transformative effect across our business. It’s leading to new ways of executing on our plans, and generating operational effectiveness and cost management improvements. Ongoing initiatives such as fleet modernization, electric vehicle charging stations, lighting and heating system optimization, renewable energy use, and accelerated use of cloud and virtual conferencing services are contributing to reductions in our environmental impact and lowering operational costs. Our focus on operational excellence increases the impact of Bell’s scale and resources. SOLID FOUNDATION SUPPORTS FUTURE SUCCESS A solid financial performance for BCE in 2021, including consolidated revenues and other key metrics almost reaching pre-COVID levels achieved in 2019, has allowed us to maintain significant liquidity, investment-grade credit ratings and fully funded pension plans, all of which support ongoing investments that help us operate more efficiently and effectively. As we continue expanding our fibre and 5G networks, we are able to increase digital adoption and interactions, expand customer self-serve capabilities and enhance our products and services while continuing to improve the ways we work at Bell and make it easier for customers to do business with us. Our financial strength also enables Bell to invest in the industry-leading ESG initiatives that are all part of our Bell for Better commitment. Bell is building on our long legacy of service and innovation, accelerating Canada’s network infrastructure and maintaining our positive customer service momentum with an eye on disciplined cost management. We’re constantly adapting to lead in a dynamic marketplace to advance how Canadians connect with each other and the world.

 

BCE INC. 2021 ANNUAL REPORT  |  19

STRATEGIC IMPERATIVE 6 Engage and invest in our people and create a sustainable future The Bell team brings our strategy to life every day, making an impact on how Canadians connect, work, learn and play as they deliver leading edge technology, develop compelling new content, and support our company and communities. We’re committed to providing growth opportunities for our 50,000 employees across the country and to foster a dynamic culture that creates a better today and tomorrow.    CREATING A SUSTAINABLE FUTURE Reflecting our long-standing commitment to the highest ESG standards, we’re now embedding our focus on creating a more sustainable future directly into our six strategic imperatives. As one of Canada’s largest companies, we are driven to continually improve our impact and our contribution to society with our connectivity commitments, investments in mental health initiatives, environmental sustainability and an engaged workplace. We are helping build better communities across the country, and contributing to Canada’s pandemic recovery and economic growth in every region. In 2021, we accelerated our investment to deliver broadband connectivity to Canadians in locations large and small. We’re donating refurbished computers, printers and other electronic devices to schools through the national Computers for Schools Plus program. And Bell’s capital expenditures in R&D of approximately $500 million annually includes support for university research in 5G, AI and cybersecurity, delivering a stream of new innovation to Canadian homes and businesses. Consistently named one of Canada’s Greenest Employers, Bell is working to reduce greenhouse gas emissions and plans to achieve carbon neutral operations by 2025. Across the country, almost 50,000 dedicated Bell employees are innovating, adapting and ensuring our customers have the best possible experience.    BELL’S EVOLVING COVID-19 RESPONSE Throughout the COVID crisis, the team has consistently stepped up to provide critical support, connections and information for our customers, communities and each other. We continued to evolve our health and safety protocols in line with the latest public health guidance to protect everyone’s health and safety. This included introducing Bell Workways, a flexible hybrid work model that provides the Bell team with more flexibility, collaboration and support in how and where it works, while continuing to deliver the best networks, services and content to Canadians everywhere. The program builds on the experiences of the pandemic, recognizing the team’s strong ability to adapt and deliver results as we move forward from the challenges of COVID-19. Bell also adapted its COVID protocols throughout 2021, including enhanced health and safety measures in the field, retail stores and other Bell workplaces, prioritizing the well-being of our employees and communities, and developing a phased, adaptable plan for resuming more normal business operations. Recognizing the ongoing challenges of the pandemic, Bell also continued to lead with enhanced workplace and community mental health supports, including significant investments in community mental health partnerships, and most recently adding to our programs and resources with unlimited mental health benefit coverage for team members and their eligible family members. AN INCLUSIVE WORKPLACE WHERE EVERYONE BELONGS Bell is committed to enhancing diversity, equity and inclusion, understanding that different backgrounds, experiences and ideas create a positive work culture and lead to better outcomes. Bell continued to accelerate our work to create an inclusive, equitable and accessible workplace, building new partnerships and making new commitments for action.

 

20  |  BCE INC. 2021 ANNUAL REPORT

In partnership with the Onyx Initiative, Bell welcomed its first cohort of Black students into its inaugural training and mentorship/coaching program, and continued to team up with the Black Professionals in Tech Network, Ascend Canada, Indigenous Works and Women in Tech to enhance the diverse representation in our workplace. Working to address the mental health impacts of systemic racism, the Bell Let’s Talk Diversity Fund distributed $2.25 million in grants to 16 organizations since its launch in 2020, and continues to provide opportunities to groups performing vital work in their communities. Bell also launched a company-wide accessibility program to make our products and services more accessible and ensure people with disabilities have equal opportunities through the use of advanced communication technologies. Bell is committed to growing diversity, equity and inclusion at every level of the company, from student hiring to the BCE Board. A member of the 30% Club and a signatory to the Catalyst Accord 2022, Bell leads with more ambitious targets: we aim for a minimum 35% gender-diverse representation among directors on the BCE Board moving forward, and at least 35% of Bell leaders at the VP level and above by the end of 2023. In 2021, we achieved our target of 40% BIPOC representation in Bell’s new grad and intern hires and continue to target at least 25% BIPOC representation on our senior management team by 2025.    Throughout the COVID crisis, the Bell team has consistently stepped up to provide critical support, connections and information.    A CULTURE OF RECOGNITION AND GROWTH Committed to sustaining a high-performance culture, Bell enhanced programs that focus on continuous learning, including Bell’s Leadership Development Pathway and Bell U, a virtual university providing skill development opportunities in high-demand, technology-focused areas. A new team recognition program called Better Together was launched with more engaging opportunities to highlight outstanding work, customer champions, great partnership, community difference makers, advocates for mental health and inclusion, and contributors to positive change and growth at Bell. Bell also provided more meaningful opportunities for our next generation of leaders by investing in programs for recent graduates, interns and summer students. Our award-winning Graduate Leadership and Internship programs also help develop the leaders of tomorrow, with 1,355 new graduate and other students joining the company in 2021, including more BIPOC representation. A LEADING EMPLOYER WITH A FOCUS ON THE FUTURE Bell was again named an outstanding place to work, both nationally and in our headquarters city of Montréal, along with honours as a top employer for young people, one of Canada’s best diversity employers, and one of its greenest companies. The 2021 launch of Bell for Better reinforced our long-term commitment to create better outcomes for all stakeholders, looking forward to the future with a purpose-driven approach to making our team, workplaces and communities even better.

 

BCE INC. 2021 ANNUAL REPORT  |  21

CORPORATE RESPONSIBILITY 2021 environmental, social and governance highlights Bell’s corporate responsibility approach balances economic growth, social responsibility and environmental sustainability. Focused on our purpose of advancing how Canadians connect with each other and the world, Bell provides millions of Canadian consumers and businesses with leading communications networks, services and media content. We are making a significant overall contribution to Canada’s social and economic prosperity while creating value for shareholders and providing meaningful careers for people nationwide. The topics Bell reports on reflect the intersection of our company’s value chain, current and emerging sustainability trends and stakeholder interests, and their potential impacts on our business. CLIMATE CHANGE Bell is taking action to help address climate change and adapt to its consequences. Our efforts to mitigate climate change start with energy consumption, as we strive to save energy and reduce associated greenhouse gas (GHG) emissions while helping customers reduce theirs. For example, our networks are supporting remote work for millions of Canadians while averting GHG emissions related to travel. Among other targets, we are increasing electricity efficiency at Bell facilities, electrifying our fleet and generating renewable energy at remote sites. Reporting regularly on our energy performance and associated GHG emissions demonstrates to our stakeholders that we take these initiatives seriously. • Key metrics Bell’s objective is to achieve carbon neutral operations (1) starting in 2025. For 2030, we have set science-based GHG emissions reduction targets that are consistent with limiting global warming to 1.5°C (2), in line with the most ambitious temperature goal of the Paris Agreement (3). • Key achievements In 2021, we surpassed our GHG reduction target by 15%, with our GHG emissions per network usage showing a 55% improvement since 2019. DIVERSITY, EQUITY AND INCLUSION At Bell, we are proud of our commitment to foster an inclusive, equitable and accessible workplace where all team members feel valued, respected and supported. We are dedicated to building a workforce that reflects the diversity of the communities we serve, with a commitment to ensuring every team member has the opportunity to reach their full potential. (1) Operational GHG emissions include scope 1 and scope 2 emissions. Scope 1 emissions are direct GHG emissions from sources that are owned or controlled by Bell. Scope 2 emissions are indirect GHG emissions associated with the consumption of purchased electricity, heating/cooling and steam required by Bell’s activities. (2) Pending approval by the Science Based Targets initiative (SBTi). (3) Science-based targets are GHG emissions reduction targets that are in line with what the latest climate science says is necessary to meet the goals of the Paris Agreement – to limit global warming to well below 2°C above pre-industrial levels and pursue efforts to limit warming to 1.5°C. (4) Woman, and directors that identify with a gender other than a man or woman.

 

22  |  BCE INC. 2021 ANNUAL REPORT

• Key metrics A member of the 30% Club and a signatory to the Catalyst Accord 2022, Bell leads with more ambitious targets: we are aiming for a minimum of 35% gender-diverse representation among directors on the BCE Board moving forward, and at least 35% of Bell leaders at the vice-presidential (VP) level and above by the end of 2023. Bell continues to target BIPOC representation in Bell senior management of at least 25% by 2025 and maintaining at least 40% BIPOC representation in new graduate and intern hires. • Key achievements As of December 31, 2021, women represented 36% of the BCE Board of Directors. Going forward, we target a minimum of 35% gender-diverse directors. Upon the election of all director nominees at BCE’s 2022 annual shareholder meeting, this target will continue to be met, with five of the director nominees, representing 38% of all directors, identifying as women. At the end of 2021, women represented 33% of Bell leaders at the VP level and above. Our support for gender equity in the workplace has been recognized with Platinum Parity Certification by Women in Governance. Bell was again recognized as one of Canada’s Best Diversity Employers in 2021. To further accelerate diversity and inclusion on our team, Bell partnered with the Onyx Initiative, which brings together major companies and academic institutions to support professional development and recruiting opportunities for Black post-secondary students and graduates. We also teamed up with the Black Professionals in Tech Network, Ascend Canada and Indigenous Works to drive progress in hiring and promotion for BIPOC talent in Canadian telecom and tech, and joined with BIPOC TV & Film to launch HireBIPOC to connect creators and crew with opportunities in Canadian media. PRIVACY AND INFORMATION SECURITY Our customers, team members and investors expect us to demonstrate that we collect data appropriately, use it for purposes that advance their interests and keep it secure. A 2021 research project, a collaboration between Bell, Québec-based solar energy company Stace and Université de Sherbrooke, studied the viability of these solar voltaic cells to generate renewable energy to provide primary power for remote telecommunications towers –displacing diesel generators and reducing the associated greenhouse gas emissions. Our approach to data governance encompasses the protection and appropriate use of data across its lifecycle, and we incorporate data governance proactively as a core consideration in all our business initiatives and technology decisions. • Key metrics We expect our team members selected for the Be Cyber Savvy Information Security training program to complete the full training cycle by the end of 2022. This training program includes onboarding to our specialized Be Cyber Savvy platform, performing phishing simulations and taking four cybersecurity courses. To measure the success of our training program, we aim to improve the phishing simulation report rate of our team members on a year over year basis. We also aim to align our program to the ISO 27001 standard for information security management by the end of 2023. • Key achievements During 2021, we onboarded 100% of selected team members, and 70% completed the full training program. We are aligning our information security management system to the ISO 27001 standard, achieving 50% conformity at the end of 2021. To learn more about our ESG approach and our reporting, please visit BCE.ca/Responsibility.

 

BCE INC. 2021 ANNUAL REPORT  |  23

COMMUNITY INVESTMENT Bell Let’s Talk accelerates investment in Canadian mental health 12th annual Bell Let’s Talk Day breaks previous records with the world’s largest conversation on mental health – $8,214,941 more for mental health in Canada. Millions of Canadians and people around the world joined together on Bell Let’s Talk Day and took action to create positive change, growing the global conversation and resulting in more Bell donations for Canadian mental health.    In January 2022, Bell Let’s Talk announced almost $8 million in funding for new mental health projects: • $1.5 million in funding from the Bell-Graham Boeckh Foundation Partnership will help Foundry improve integrated health and social services for youth and their families and caregivers in BC and support other emerging Integrated Youth Services initiatives around the country. • Following the release of the National Standard of Canada for Mental Health and Well-Being for Post-Secondary Students (itself funded in part by Bell), a further $1 million in implementation grants were awarded to 16 universities, colleges and cégeps that are using the Standard to address specific gaps or needs in their mental health support services by building new initiatives. • $600,000 to 6 new recipients of the Bell Let’s Talk Diversity Fund, a $5 million commitment launched in July 2020 to support the mental health and well-being of BIPOC communities across Canada. • Fondation CERVO will use $250,000 from Bell Let’s Talk to acquire a second rTMS machine to significantly increase the number of people receiving rTMS treatment in Québec City and the surrounding region. • With previous support from Bell Let’s Talk, Red Cross Canada announced the expansion of the Friendly Calls program with cultural adaptation for Indigenous communities in Manitoba and around Canada. • 5 multidisciplinary teams were selected to receive funding from the $4 million Bell Let’s Talk-Brain Canada Mental Health Research Program to develop more effective, sustainable, and accessible mental health care solutions for all people living in Canada. • A $370,000 donation, in partnership with the Government of Yukon and Northwestel, to Strongest Families Institute to support child, youth and adult mental health in Yukon. In 2021, the campaign reflected the profound impact COVID-19 had on our mental health and focused on the message that when it comes to mental health, now more than ever, every action counts. In 2022, Bell Let’s Talk Day continued to focus on action, encouraging Canadians to keep talking, listening and being there for themselves and for one another. Every Bell Let’s Talk Day, Bell donates 5 cents to Canadian mental health programs for every eligible call, text and social media message of support for action in mental health, at no cost to participants other than what they may normally pay their service provider for phone, text or internet access. On our most recent Bell Let’s Talk Day, Canadians and people around the world set all-new records for engagement in the mental health conversation, sharing 164,298,820 messages of support. The additional $8,214,941 generated by the messaging total brought Bell’s overall funding commitment to $129,588,747.75, well on the way to our objective of at least $155 million by 2025. Many communities and partner organizations across the country took part in Bell Let’s Talk flag raisings to show their support for mental health and to highlight supports available in their communities. More than 180 flags were raised by cities, towns and legislative assemblies; universities and colleges; hospitals and other public facilities; and by the Canadian Armed Forces, including at CFS Alert near the North Pole and by the crew onboard the deployed HMCS Montréal.

 

24  |  BCE INC. 2021 ANNUAL REPORT

MAKING A DIFFERENCE ALL YEAR ROUND Bell Let’s Talk is active year round funding organizations in every province and territory that are working to reduce stigma, improving access to mental health care and undertaking critical research. Bell has partnered with more than 1,300 hospitals, universities, national associations and local community service providers since 2010. In May 2021, Bell announced a five-year $1 million donation to Rise Asset Development to empower entrepreneurship for Canadians with mental health and addiction challenges. Building on Bell’s earlier support for Rise programs, the gift is enabling Rise to engage even more Canadians with mental health and addiction challenges in entrepreneurship training, mentorship and lending and supports the organization’s expansion into Manitoba with the launch of Rise Winnipeg. Spring 2021 saw 6 recipients of the new Bell Let’s Talk Diversity Fund unveiled with $750,000 in donations distributed. During Mental Health Week, we also launched the From Where We Stand: Conversations on Race and Mental Health podcast series, which explores the mental health challenges and barriers to accessing care faced by BIPOC communities.    Bell Let’s Talk continues to spotlight the work of our mental health partners in a variety of ways, including through the Bell for Better campaign. In 2021, we featured the stories of Jack.org advocate Jay Legaspi and Kids Help Phone Indigenous Advisory Council member Ashley Cummings, who are working to transform mental health for Canadian youth. The Bell Let’s Talk Community Fund has now provided $15 million to 888 organizations nationwide since 2011, enabling partners to improve access to mental health care, supports and services.    Bell Let’s Talk Day provided a timely opportunity to build on increased awareness around mental health and to inspire Canadians to keep playing an active role in moving mental health forward in Canada as a priority issue. Since 2013, the Bell True Patriot Love Fund has provided more than $2 million and over 115 grants to organizations across the country improving access to mental health care to military members, Veterans and their families. In 2021, a total of $350,000 was awarded to 11 organizations making a meaningful difference in the military community. Please visit Bell.ca/letstalk to learn more about how Bell is supporting Canadian mental health every day of the year. Bell Let’s Talk continues to invest in mental health year round, partnering to increase access to care in communities from coast to coast to coast.

 

BCE INC. 2021 ANNUAL REPORT  |  25

BELL ARCHIVES Building networks to connect Canadians since 1880 Bell has been leading the way building and supporting networks of the future for more than 141 years. Our unrelenting focus began with the telephone, building networks that connected Canadians within their community, across the country and around the world. Using that same relentless passion today, our Bell team builds networks that support the most advanced Internet and wireless technologies in the world. BUILDING A NATIONAL NETWORK – TECHNOLOGY Bell’s original quest to connect Canadians focused on one single technology: the telephone, which was markedly different than the smartphones we carry in our pockets today. The early phones consisted of three boxes mounted on a backboard – the bottom contained the battery, the middle had a hole to speak into and the top one, from which the receiver hung, housed a magneto generator and crank used to initiate a call to the operator.    Bell employees A. T. Smith and R. Freeman, Brockville (Ontario), 1881 Wooden roof fixture carrying subscribers’ lines into the telephone office on Colborne Street, Brantford (Ontario), 1902 Until the end of 1882, these phones were connected to the operator with iron and metal wires strung across trees, fences and roofs using the ground to complete the power circuit. These wires were soon replaced with copper pairs, producing the first early upgrade to our telecommunications infrastructure. The operator would manually connect these calls using a magneto switchboard supporting a number of pairs carried by early transmission cables. The early operators were an essential part of the Bell network and the true voice of our company, connecting calls and sharing useful information ranging from weather to time of day, election results and sports scores. You might say they were our CTV News/TSN broadcast team of the late 1800s. Miss Ida Gardner, first operator in Winchester (Ontario) at switchboard, around 1897

 

26  |  BCE INC. 2021 ANNUAL REPORT

Bell construction gang posed for the photographer somewhere on the road between Napanee and Deseronto (Ontario), 1895 BUILDING A NATIONAL NETWORK – THE PEOPLE The operator was a true reflection of the pioneering spirit of our first generation of Bell employees, who were also stepping into new professions as sales agents, clerks, foremen, maintenance workers and plant technicians. Bell’s first construction teams, generally about 20 men, arrived at work in horse-drawn wagons for 11-hour workdays, 6 days a week. The linemen, as they were later called, were essential in building and expanding our early telephone network, erecting poles and running phone lines across Bell’s territory. Bell operators seated at a multiple magneto switchboard, “Main” central office, Montréal, 1888 Photograph of Charles Fleetford Sise, Sr. was taken in his office at the company’s head office, 1914 Building the Almonte–Pembroke long distance telephone line, drawn by Morris Ahearn, 1886 BUILDING A NATIONAL NETWORK – CONSTRUCTION These construction teams were at the centre of Bell’s first long distance line, built between Toronto and Hamilton in 1881. By 1885, long distance lines were supporting all points from Montréal to Windsor, and by the end of the 19th century, Bell customers could call almost anywhere in Québec and Ontario and up to 1,000 miles into the United States. The number of phone lines grew from 2,100 in 1880 to 78,195 in 1905, thanks to the tremendous efforts of the linemen who installed over 14,000 km of pole lines and 60,000 km of transmission cables. That doesn’t include the first underground cables, which were laid in Toronto for the first time in 1889. When Charles F. Sise invested more than $20,000, financing part of the cost of the first long distance connection between Hamilton and Toronto, he began a passion for building our country’s strongest network. With our $1.7 billion capital expenditure acceleration program introduced in 2021, which will be completed in 2022, to accelerate fibre, rural and 5G network rollouts, we are proud to build on Bell’s 141-year passion for building the best networks and giving our company a critical advantage over our competition. A Bell construction team laying underground cable on Queen Street, Sault-Ste-Marie, 1909 A Bell crew raising a 60-foot telephone pole near the corner of King and Dufferin Streets, Toronto, 1895

 

BCE INC. 2021 ANNUAL REPORT  |  27

The network we’re most proud of: our people.

 

28  |  BCE INC. 2021 ANNUAL REPORT

Table of contents

 

Table of contents

 

 

BCE INC. 2021 ANNUAL REPORT  |  29

MD&A

 

Management’s discussion and analysis

 

 

CAUTION REGARDING FORWARD-LOOKING STATEMENTS

 

 

30  |  BCE INC. 2021 ANNUAL REPORT

MD&A

 

 

BCE INC. 2021 ANNUAL REPORT  |  31

1 MD&A Overview

 

1   Overview

COVID-19

 

 

32  |  BCE INC. 2021 ANNUAL REPORT

1 MD&A Overview

 

 

1.1   Introduction

AT A GLANCE

 

 

BCE INC. 2021 ANNUAL REPORT  |  33

1 MD&A Overview

 

 

BCE 2021 CONSOLIDATED RESULTS

 

Operating revenues		Net earnings		Adjusted EBITDA (1)
$23,449		$2,892		$9,893
million		million		million
+2.5% vs. 2020		+7.2% vs. 2020		+3.0% vs. 2020

 

 

 

Net earnings attributable		Adjusted net earnings (1)		Cash flows from		Free cash flow (1)
to common shareholders				operating activities
$2,709		$2,895		$8,008		$2,995
million		million		million		million
+8.4% vs. 2020		+6.0% vs. 2020		+3.3% vs. 2020		(10.5%) vs. 2020
BCE CUSTOMER CONNECTIONS
Wireless		Retail high-speed		Retail TV (4)		Retail residential network
Total mobile phones (2)		Internet (3)				access services (NAS) lines
+3.2%		+4.2%		(0.1%)		(7.5%)
9.5 million subscribers		3.9 million subscribers		2.7 million subscribers		2.3 million subscribers
at the end of 2021		at the end of 2021		at the end of 2021		at the end of 2021

    

 

OUR PURPOSE

BCE’s purpose is to advance how Canadians connect with each other and the world. Our strategy builds on our longstanding strengths in networks, service innovation and content creation, and positions the company for continued growth and innovation leadership. Our primary business objectives are to grow our subscriber base profitably and to maximize revenues, operating profit, free cash flow and return on invested capital by further enhancing our position as the foremost provider in Canada of comprehensive communications services to residential, business and wholesale customers, and as Canada’s leading content creation company. We seek to take advantage of opportunities to leverage our networks, infrastructure, sales channels, and brand and marketing resources across our various lines of business to create value for our customers and other stakeholders.

Our strategy is centred on our disciplined focus and execution of six strategic imperatives that position us to deliver continued success in a fast-changing communications marketplace. The six strategic imperatives that underlie BCE’s business plan are:

 

Bell’s six strategic imperatives

Build the

Drive growth with

Deliver the most

best networks

innovative services

compelling content

Engage and invest in

Champion

Operate with agility

our people and create

customer experience

and cost efficiency

a sustainable future

In 2022, we embedded our focus on creating a more sustainable future directly into our six strategic imperatives, reflecting our long-standing commitment to the highest ESG standards. As one of Canada’s largest companies, we are driven to continually improve our impact and our contribution to society with our connectivity commitments, investments in mental health initiatives, environmental sustainability and an engaged workplace.

 

(1)	Adjusted EBITDA is a total of segments measure, and adjusted net earnings and free cash flow are non-GAAP financial measures. See section 11.3, Total of segments measures and section 11.1, Non-GAAP financial measures in this MD&A for more information on these measures.

 

(2)

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. See section 11.6, KPIs, in this MD&A for more details.

 

(3)	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 mobile connected devices subscriber base.

 

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

 

34  |  BCE INC. 2021 ANNUAL REPORT

1 MD&A Overview

 

 

1.2   About BCE

We report the results of our operations in three segments: Bell Wireless, Bell Wireline and Bell Media. We describe our product lines by segment below, to provide further insight into our operations.

 

 

OUR PRODUCTS AND SERVICES

 

 

 

(1)

Peak theoretical download speeds of up to 1.5 Gbps on LTE-A are currently available in Kingston, Waterloo, Toronto, Mississauga, Vaughan, Richmond Hill, Markham, Brampton, North Bay, Niagara-on-the-Lake, Cambridge, Pickering, Ajax, Burlington, Guelph, London, Niagara Falls, Oakville, St. Catharines, Thorold, Thunder Bay, Welland and Ottawa. Compatible device required.

 

(2)	Network speeds vary with location, signal and customer device. Compatible device required.

 

BCE INC. 2021 ANNUAL REPORT  |  35

1 MD&A Overview

 

Bell Wireline

 

 

36  |  BCE INC. 2021 ANNUAL REPORT

1 MD&A Overview

 

Bell Media

 

 

 

BCE INC. 2021 ANNUAL REPORT  |  37

1 MD&A Overview

 

Other BCE investments   BCE also holds investments in a number of other assets, including:   •  a 28% indirect equity interest in MLSE, a sports and entertainment company that owns several sports teams, including the Toronto Maple Leafs, the Toronto Raptors, Toronto FC and the Toronto Argonauts, as well as real estate and entertainment assets in Toronto   •  a 50% indirect equity interest in Glentel, a Canadian-based connected services retailer   •  an 18.4% indirect equity interest in entities that operate the Montréal Canadiens Hockey Club, evenko (a promoter and producer of cultural and sports events) and the Bell Centre in Montréal, Québec, as well as Place Bell in Laval, Québec

 

 

OUR PEOPLE

 

EMPLOYEES   At the end of 2021, our team consisted of 49,781 employees, a decrease of 923 employees compared to the end of 2020, attributable to natural attrition, retirements and workforce reductions, offset in part by call centre hiring.   Approximately 39% of total BCE employees were represented by labour unions at December 31, 2021.

BELL CODE OF BUSINESS CONDUCT

The ethical business conduct of our people is core to the integrity with which we operate our business. The Bell Code of Business Conduct sets out specific expectations and accountabilities, providing employees with practical guidelines to conduct business in an ethical manner. Our commitment to the Code of Business Conduct is renewed by employees each year in an ongoing effort to ensure that all employees are aware of, and adhere to, Bell’s standards of conduct.

 

 

1.3   Key corporate developments

 

This section contains forward-looking statements, including relating to our capital expenditure acceleration program and certain of our ESG objectives. Refer to the section Caution regarding forward-looking statements at the beginning of this MD&A.

 

 

CAPITAL EXPENDITURE ACCELERATION PROGRAM

In 2021, Bell commenced its program to accelerate the rollout of its broadband fibre and wireless networks with a $1.7 billion acceleration in capital expenditures over the next two years to help drive Canada’s recovery from the COVID-19 crisis. Enabled by a positive investment climate reflecting government support for infrastructure development, this $1.7 billion capital expenditure acceleration is in addition to the approximately $4 billion in capital expenditures that Bell has typically spent each year on network infrastructure and expansion over the last decade, and will significantly increase the connections in localities across Canada. Bell spent approximately $800 million of this additional capital expenditure in 2021 to deliver approximately 1.1 million new direct fibre and WHI locations and expand mobile 5G coverage to more than 70% of Canadians. In 2022, our capital expenditures will include $900 million in accelerated capital expenditures to reach up to 900,000 more homes and businesses with direct fibre connections, expand the reach of our national 5G network to more than 80% of the national population, further densify our wireless network with new 5G sites to meet growing customer usage requirements, and enable the launch of a 5G standalone core leveraging 3500 MHz spectrum that will drive enhanced speeds, lower latency and enable next-generation services.

 

 

ACQUISITION OF ADDITIONAL HIGH-VALUE 3500 MHZ WIRELESS SPECTRUM

Bell acquired significant additional mid-band, flexible-use 3500 MHz wireless spectrum – critical to enabling the full potential of 5G – in ISED’s Canadian spectrum auction completed in July 2021. Bell acquired 271 licences in a number of urban and rural markets for 678 million MHz-Pop of 3500 MHz spectrum for $2.07 billion. Essential to Canada’s ongoing transition to 5G communications, these high-capacity airwaves extend Bell’s leadership in delivering enhanced 5G digital experiences to Canadian consumers and businesses in urban, rural and remote communities. This acquisition increases Bell’s total 3500 MHz spectrum holdings to 1,690 million MHz-Pop.

 

38  |  BCE INC. 2021 ANNUAL REPORT

1 MD&A Overview

 

 

LAUNCH OF BELL FOR BETTER INITIATIVE

 

 

 

ACQUISITION OF INTERNET PROVIDER EBOX

On February 24, 2022, Bell announced its acquisition of EBOX, an independent Internet, telephone and television service provider based in Longueuil, Québec. Bell will maintain the EBOX brand and operations, and EBOX will continue providing telecommunications options for consumers and businesses in Québec and parts of Ontario. As part of its commitment to provide Québec residents with fast and reliable telecommunications services now and in the future, Bell invests heavily in network infrastructure and expansion throughout urban and rural Québec. Under Bell, EBOX will benefit from the resources, scale and access to the technology needed to support the growth of the business and continue delivering improvements to the great services at competitive prices that have earned EBOX loyal customers over the past 25 years. The acquisition is expected to accelerate growth in Bell’s residential and small business customers. The results of the acquired business will be included in our Bell Wireline segment.

 

 

1.4   Capital markets strategy

 

 

BCE INC. 2021 ANNUAL REPORT  |  39

1 MD&A Overview

 

 

DIVIDEND GROWTH AND PAYOUT POLICY

 

Dividend yield (1)		2022 dividend increase		Dividend payout (2) policy
5.3%		+5.1%		65%–75%
in 2021		to $3.68 per common share		of free cash flow

 

 

 

EXECUTIVE COMPENSATION ALIGNMENT

BCE’s management equity-based incentive plans are structured to maximize shareholder value, share price and capital returns, as well as delivering on our goal of advancing how Canadians connect with each other and the world, through the successful execution of our six strategic imperatives. We have a strong alignment of interest between shareholders and our management’s equity-based incentive plans.

 

Best practices adopted by BCE for executive compensation		•		Stringent share ownership requirements
		•		Emphasis on pay at risk for executive compensation
		•		Double trigger change-in-control policy
		•		Anti-hedging policy on share ownership and incentive compensation
		•		Clawbacks for the President and Chief Executive Officer (CEO) and all Executive Vice-Presidents as well as all option holders
		•		Caps on BCE supplemental executive retirement plans and annual bonus payouts, in addition to mid-term and long-term incentive grants
		•		Vesting criteria fully aligned to shareholder interests

 

 

USE OF LIQUIDITY

 

 

 

(1)	Annualized dividend per BCE common share divided by BCE’s share price at the end of the year.

 

(2)	Dividend payout ratio is a non-GAAP ratio. Refer to section 11.2, Non-GAAP ratios in this MD&A for more information on this measure.

 

(3)	Excess free cash flow is a non-GAAP financial measure. Refer to section 11.1, Non-GAAP financial measures in this MD&A for more information on this measure.

 

40  |  BCE INC. 2021 ANNUAL REPORT

1 MD&A Overview

 

 

TOTAL SHAREHOLDER RETURN PERFORMANCE

 

Five-year total		One-year total
shareholder return (1)		shareholder return (1)
+48.5%		+27.9%
2017–2021		2021

FIVE-YEAR CUMULATIVE TOTAL VALUE OF A $100 INVESTMENT ⁽²⁾

DECEMBER 31, 2016 – DECEMBER 31, 2021

 

				This graph compares the yearly change in the cumulative annual total shareholder return of BCE common shares against the cumulative annual total return of the S&P/TSX Composite Index (3), for the five-year period ending December 31, 2021, assuming an initial investment of $100 on December 31, 2016 and the quarterly reinvestment of all dividends.   ●  BCE common shares         ●  S&P/TSX Composite Index

 

 

STRONG CAPITAL STRUCTURE

BCE’s balance sheet is underpinned by a healthy available liquidity ⁽⁴⁾ position of approximately $3.4 billion at the end of 2021, comprised of $207 million in cash, $400 million available under our securitized trade receivable program and $2.8 billion available under our $3.5 billion committed bank credit facilities, and an investment-grade credit profile, providing the company with a solid financial foundation and a high level of overall financial flexibility. BCE has an attractive long-term debt maturity profile with no material maturities until the first quarter of 2023. We continue to monitor the capital markets for opportunities to lower our cost of debt and optimize our cost of capital. We seek to proactively manage financial risk in terms of currency exposure of our U.S. dollar-denominated purchases, as well as equity risk exposure under BCE’s long-term equity-based incentive plans and interest rate and foreign currency exposure under our various debt instruments. We also seek to maintain investment-grade credit ratings with stable outlooks.

 

 

 

ATTRACTIVE LONG-TERM PUBLIC DEBT MATURITY PROFILE (5)   •  Average term of Bell Canada’s publicly issued debt securities: approximately 12.8 years   •  Average after-tax cost of publicly issued debt securities: 2.8%   •  No material publicly issued debt securities maturing until Q1 2023		STRONG LIQUIDITY POSITION (5)   •  $2,789 million available under our $3.5 billion multi-year committed credit facilities   •  $400 million accounts receivable securitization available capacity   •  $207 million cash		INVESTMENT GRADE CREDIT PROFILE (5) (6)   •  Long-term debt credit rating of BBB (high) by DBRS Limited (DBRS), Baa 1 by Moody’s Investors Service, Inc. (Moody’s) and BBB+ by S&P, all with stable outlooks

 

 

 

(1)	Shareholder return is defined as the change in BCE’s common share price for a specified period plus BCE common share dividends reinvested, divided by BCE’s common share price at the beginning of the period.

 

(2)	Based on BCE’s common share price on the TSX and assuming the reinvestment of dividends.

 

(3)	As the headline index for the Canadian equity market, the S&P/TSX Composite Index is the primary gauge against which to measure total shareholder return for Canadian-based, TSX-listed companies.

 

(4)	Available liquidity is a non-GAAP financial measure. Refer to section 11.1, Non-GAAP financial measures in this MD&A for more information on this measure.

 

(5)	As at December 31, 2021

 

(6)

These credit ratings are not recommendations to buy, sell or hold any of the securities referred to, and they may be revised or withdrawn at any time by the assigning rating agency. Ratings are determined by the rating agencies based on criteria established from time to time by them, and they do not comment on market price or suitability for a particular investor. Each credit rating should be evaluated independently of any other credit rating.

 

BCE INC. 2021 ANNUAL REPORT  |  41

1 MD&A Overview

 

 

 

1.5   Corporate governance and risk management

CORPORATE GOVERNANCE PHILOSOPHY

The Board and management of BCE believe that strong corporate governance practices contribute to superior results in creating and maintaining shareholder value. That is why we continually seek to strengthen our leadership in corporate governance and ethical business conduct by adopting best practices, and providing full transparency and accountability to our shareholders. The Board is responsible for the supervision of the business and affairs of the company.

Below are our key Board information and governance best practices:

 

✓  Directors are ALL Independent (except CEO)				✓   Directors’ Tenure Guidelines
99%  2021 Board and Committee Director Attendance Record for Director Nominees				✓   Board Renewal: 8 Non-Executive Director Nominees ≤ 6 Years Tenure
✓  Board Committee Members are All Independent				✓   Share Ownership Guidelines for Directors and Executives
✓  Board Diversity Policy and Target for Gender Representation				✓   Code of Business Conduct and Ethics Program
✓  Annual Election of All Directors				✓   Annual Advisory Vote on Executive Compensation
✓  Directors Elected Individually				✓   Formal Board Evaluation Process
✓  Majority Voting Policy for Directors				✓   Board Risk Oversight Practices
✓  Separate Chair and CEO				✓   ESG Strategy Reviewed by Board
✓  Board Interlocks Guidelines				✓   Robust Succession Planning

For more information, please refer to BCE’s most recent notice of annual general shareholder meeting and management proxy circular (the Proxy Circular) filed with the Canadian provincial securities regulatory authorities (available at sedar.com) and furnished to the U.S. Securities and Exchange Commission (available at sec.gov), and available on BCE’s website at BCE.ca.

 

(1)

Net debt leverage ratio and adjusted EBITDA to adjusted net interest expense ratio are capital management measures and net debt is a non-GAAP financial measure. See section 11.4, Capital management measures and section 11.1, Non-GAAP financial measures in this MD&A for more information on these measures.

 

42  |  BCE INC. 2021 ANNUAL REPORT

1 MD&A Overview

 

 

RISK GOVERNANCE FRAMEWORK

 

BCE INC. 2021 ANNUAL REPORT  |  43

1 MD&A Overview

 

 

44  |  BCE INC. 2021 ANNUAL REPORT

1 MD&A Overview

 

 

 

1.6   Environmental, social and governance practices

 

 

 

CORPORATE RESPONSIBILITY UNDERPINS OUR SIX STRATEGIC IMPERATIVES

 

 

 

COMMUNITY

 

 

BCE INC. 2021 ANNUAL REPORT  |  45

1 MD&A Overview

 

 

 

SOCIETY AND ECONOMY

 

 

46  |  BCE INC. 2021 ANNUAL REPORT

1 MD&A Overview

 

 

TEAM MEMBERS

 

 

BCE INC. 2021 ANNUAL REPORT  |  47

1 MD&A Overview

 

 

 

ENVIRONMENT

 

 

(1)	Defined as women, and directors and executives who identify with a gender other than a man or woman.

 

(2)

Our ISO 14001 certification covers Bell Canada’s oversight of the EMS associated with the development of policies and procedures for the delivery of landline, wireless, TV and Internet services, broadband and connectivity services, data hosting, cloud computing, radio broadcasting and digital media services, along with related administrative functions.

 

(3)

Our ISO 50001 certification covers Bell Canada’s energy management program associated with the activities of real estate management services, fleet services, radio broadcasting and digital media services, landline, wireless, TV, Internet services, connectivity, broadband services, data hosting and cloud computing, in addition to related general administrative functions.

 

48  |  BCE INC. 2021 ANNUAL REPORT

1 MD&A Overview

 

 

 

PRIVACY AND INFORMATION SECURITY

 

 

(1)	Operational GHG emissions include scope 1 and scope 2 emissions. Scope 1 GHG emissions are direct emissions from sources that are owned or controlled by Bell. Scope 2 GHG emissions are indirect emissions associated with the consumption of purchased electricity, heat, steam and cooling.

 

(2)	Pending approval by the SBTi.

 

(3)	Wi-Fi pods have been included in the scope starting in 2021.

 

BCE INC. 2021 ANNUAL REPORT  |  49

1 MD&A Overview

 

 

 

ASSUMPTIONS

 

 

50  |  BCE INC. 2021 ANNUAL REPORT

2 MD&A Strategic imperatives

 

2    Strategic imperatives

Our success is built on the BCE team’s dedicated execution of the six strategic imperatives that support our purpose to advance how Canadians connect with each other and the world.

This section contains forward-looking statements, including relating to our network deployment plans and our 2022 objectives, plans and strategic priorities. Refer to the section Caution regarding forward-looking statements at the beginning of this MD&A.

 

 

2.1    Build the best networks

 

 

 

2.2    Drive growth with innovative services

 

 

BCE INC. 2021 ANNUAL REPORT  |  51

2 MD&A Strategic imperatives

 

 

 

2.3    Deliver the most compelling content

 

 

52  |  BCE INC. 2021 ANNUAL REPORT

2 MD&A Strategic imperatives

 

 

 

2.4    Champion customer experience

 

 

BCE INC. 2021 ANNUAL REPORT  |  53

2 MD&A Strategic imperatives

 

 

2.5    Operate with agility and cost efficiency

 

 

 

2.6    Engage and invest in our people and create a sustainable future

 

 

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

 

54  |  BCE INC. 2021 ANNUAL REPORT

3 MD&A Performance targets, outlook, assumptions and risks

 

3   Performance targets, outlook, assumptions

     and risks

This section provides information pertaining to our performance against 2021 targets, our consolidated business outlook and operating assumptions for 2022 and our principal business risks.

 

 

3.1  BCE 2021 performance vs. guidance targets

 

FINANCIAL MEASURE		2021 TARGET		2021 PERFORMANCE AND RESULTS
Revenue growth		2%–5%		2.5%		BCE revenues increased by 2.5% in 2021 compared to last year, reflecting our strong operational execution as we continued to recover from the impact of the COVID-19 pandemic. The growth was driven by our Bell Wireless and Bell Media segments, offset in part by a decline in Bell Wireline. Service and product revenue were both up year over year, 2.6% and 1.6%, respectively.
Adjusted EBITDA growth		2%–5%		3.0%		BCE adjusted EBITDA increased by 3.0% in 2021, compared to 2020, attributable to growth across all three of our segments, driven by higher revenues, offset in part by greater operating expenses.
Net earnings growth		Not applicable		7.2%		In 2021, net earnings increased by 7.2%, compared to 2020, mainly due to higher adjusted EBITDA, higher other income and lower impairment of assets primarily at our Bell Media segment, partly offset by higher income taxes, lower net earnings from discontinued operations as a result of a gain on sale, net of taxes, of $211 million in Q4 2020 from the completion of the sale of substantially all of our data centre operations, higher depreciation and amortization, and higher severance, acquisition and other costs.
Capital intensity (1)		18%–20%		20.6%		2021 capital expenditures increased by 15.1% over last year to $4,837 million, with a corresponding capital intensity of 20.6%, up 2.2 pts over 2020. Capital intensity came in higher than our target range, consistent with our two-year plan to accelerate the rollout of our mobile 5G, fibre and rural WHI networks.
Net earnings per share (EPS) growth		Not applicable		8.3%		Net earnings attributable to common shareholders in 2021 increased by $211 million, or $0.23 per common share, compared to 2020, mainly due to higher adjusted EBITDA, higher other income and lower impairment of assets primarily at our Bell Media segment, partly offset by higher income taxes, lower net earnings from discontinued operations as a result of a gain on sale, net of taxes, of $211 million in Q4 2020 from the completion of the sale of substantially all of our data centre operations, higher depreciation and amortization, and higher severance, acquisition and other costs.
Adjusted net earnings per share (adjusted EPS) (2) growth		1%–6%		5.6%		Excluding the impact of severance, acquisition and other costs, net mark-to-market gains (losses) on derivatives used to economically hedge equity settled share-based compensation plans, net equity gains (losses) on investments in associates and joint ventures, net gains (losses) on investments, early debt redemption costs, impairment of assets and discontinued operations, net of tax and non-controlling interest (NCI), adjusted net earnings in 2021 was $2,895 million, or $3.19 per common share, compared to $2,730 million, or $3.02 per common share, in 2020.
Cash flows from operating activities		Not applicable		$8,008 million		In 2021, BCE’s cash flows from operating activities increased by $254 million, compared to 2020, mainly due to higher adjusted EBITDA and higher cash from working capital due mainly to the timing of supplier payments, partly offset by higher severance and other costs paid and higher income taxes paid. Additionally, there was lower cash from discontinued operations in 2021 as the sale of substantially all of our data centre operations was completed in Q4 2020.
Free cash flow		$2,850 million – $3,200 million		$2,995 million		Free cash flow decreased by $353 million in 2021, compared to 2020, mainly due to higher capital expenditures, partly offset by higher cash flows from operating activities, excluding cash from discontinued operations and acquisition and other costs paid.
Annualized common dividend per share		$3.50 per share		$3.50 per share		Annualized BCE common dividend per share for 2021 increased by 17 cents, or 5.1%, to $3.50 compared to $3.33 per share in 2020.

 

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

 

(2)	Adjusted EPS is a non-GAAP ratio. Refer to section 11.2, Non-GAAP ratios in this MD&A for more information on this measure.

 

BCE INC. 2021 ANNUAL REPORT  |  55

3 MD&A Performance targets, outlook, assumptions and risks

 

 

3.2   Business outlook and assumptions

This section contains forward-looking statements, including relating to our projected financial performance and expected contribution levels to our DB pension plans in 2022, our network deployment plans and our 2022 annualized common share dividend and business outlook, objectives, plans and strategic priorities. Refer to the section Caution regarding forward-looking statements at the beginning of this MD&A.

 

 

 

 

56  |  BCE INC. 2021 ANNUAL REPORT

3 MD&A Performance targets, outlook, assumptions and risks

 

 

ASSUMPTIONS

 

 

 

3.3   Principal business risks

 

 

BCE INC. 2021 ANNUAL REPORT  |  57

3 MD&A Performance targets, outlook, assumptions and risks

 

 

 

COMPETITIVE ENVIRONMENT

 

 

58  |  BCE INC. 2021 ANNUAL REPORT