BCE (BCE) 6-K Current report (foreign)

Exhibit 99.3

    

Supplementary Financial Information   Second Quarter 2021

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

BCE ⁽¹⁾

Consolidated Operational Data

(In millions of Canadian dollars, except share amounts) (unaudited)	Q2 2021			Q2 2020			$ change			% change		YTD 2021			YTD 2020			$ change			% change
Operating revenues
Service		5,040			4,800			240			5.0%		10,008			9,818			190			1.9%
Product		658			554			104			18.8%		1,396			1,176			220			18.7%
Total operating revenues		5,698			5,354			344			6.4%		11,404			10,994			410			3.7%
Operating costs (A)		(3,159	)		(2,959	)		(200	)		(6.8%)		(6,362	)		(6,106	)		(256	)		(4.2%)
Post-employment benefit plans service cost		(63	)		(64	)		1			1.6%		(137	)		(139	)		2			1.4%
Adjusted EBITDA (2)		2,476			2,331			145			6.2%		4,905			4,749			156			3.3%
Adjusted EBITDA margin (2)		43.5%			43.5%						-		43.0%			43.2%						(0.2) pts
Severance, acquisition and other costs		(7	)		(22	)		15			68.2%		(96	)		(38	)		(58	)		n.m.
Depreciation		(905	)		(869	)		(36	)		(4.1%)		(1,800	)		(1,727	)		(73	)		(4.2%)
Amortization		(248	)		(234	)		(14	)		(6.0%)		(486	)		(464	)		(22	)		(4.7%)
Finance costs
Interest expense		(268	)		(280	)		12			4.3%		(535	)		(557	)		22			3.9%
Interest on post-employment benefit obligations		(5	)		(11	)		6			54.5%		(10	)		(23	)		13			56.5%
Impairment of assets		(164	)		(449	)		285			63.5%		(167	)		(456	)		289			63.4%
Other income (expense)		91			(80	)		171			n.m.		99			(127	)		226			n.m.
Income taxes		(236	)		(96	)		(140	)		n.m.		(489	)		(339	)		(150	)		(44.2%)
Net earnings from continuing operations		734			290			444			n.m.		1,421			1,018			403			39.6%
Net earnings from discontinued operations		-			4			(4	)		(100.0%)		-			9			(9	)		(100.0%)
Net earnings		734			294			440			n.m.		1,421			1,027			394			38.4%
Net earnings from continuing operations attributable to:
Common shareholders		685			233			452			n.m.		1,327			908			419			46.1%
Preferred shareholders		32			34			(2	)		(5.9%)		64			72			(8	)		(11.1%)
Non-controlling interest		17			23			(6	)		(26.1%)		30			38			(8	)		(21.1%)
Net earnings from continuing operations		734			290			444			n.m.		1,421			1,018			403			39.6%
Net earnings attributable to:
Common shareholders		685			237			448			n.m.		1,327			917			410			44.7%
Preferred shareholders		32			34			(2	)		(5.9%)		64			72			(8	)		(11.1%)
Non-controlling interest		17			23			(6	)		(26.1%)		30			38			(8	)		(21.1%)
Net earnings		734			294			440			n.m.		1,421			1,027			394			38.4%
Net earnings per common share - basic and diluted
Continuing operations	$	0.76		$	0.26		$	0.50			n.m.	$	1.47		$	1.00		$	0.47			47.0%
Discontinued operations	$	-		$	-		$	-			-	$	-		$	0.01		$	(0.01	)		(100.0%)
Net earnings per common share - basic and diluted	$	0.76		$	0.26		$	0.50			n.m.	$	1.47		$	1.01		$	0.46			45.5%
Dividends per common share	$	0.8750		$	0.8325		$	0.0425			5.1%	$	1.7500		$	1.6650		$	0.09			5.1%
Weighted average number of common shares outstanding - basic (millions)		905.0			904.3								904.7			904.2
Weighted average number of common shares outstanding - diluted (millions)		905.3			904.4								904.8			904.4
Number of common shares outstanding (millions)		905.7			904.3								905.7			904.3
Adjusted net earnings and EPS
Net earnings attributable to common shareholders		685			237			448			n.m.		1,327			917			410			44.7%
Severance, acquisition and other costs		5			16			(11	)		(68.8%)		70			28			42			n.m.
Net mark-to-market (gains) losses on derivatives used to economically hedge equity settled share-based compensation plans		(73	)		7			(80	)		n.m.		(117	)		27			(144	)		n.m.
Net losses (gains) on investments		14			(11	)		25			n.m.		14			(21	)		35			n.m.
Early debt redemption costs		-			-			-			-		39			12			27			n.m.
Impairment of assets		120			328			(208	)		(63.4%)		122			333			(211	)		(63.4%)
Net earnings from discontinued operations		-			(4	)		4			100.0%		-			(9	)		9			100.0%
Adjusted net earnings (2)		751			573			178			31.1%		1,455			1,287			168			13.1%
Adjusted EPS (2)	$	0.83		$	0.63		$	0.20			31.7%	$	1.61		$	1.42		$	0.19			13.4%

n.m. : not meaningful    

^(A) Excludes post-employment benefit plans service cost    

BCE Supplementary Financial Information - Second Quarter 2021 Page 2

BCE

Consolidated Operational Data - Historical Trend

(In millions of Canadian dollars, except share amounts) (unaudited)	YTD 2021			Q2 21			Q1 21			TOTAL 2020			Q4 20			Q3 20			Q2 20			Q1 20
Operating revenues
Service		10,008			5,040			4,968			19,832			5,090			4,924			4,800			5,018
Product		1,396			658			738			3,051			1,012			863			554			622
Total operating revenues		11,404			5,698			5,706			22,883			6,102			5,787			5,354			5,640
Operating costs (A)		(6,362	)		(3,159	)		(3,203	)		(13,007	)		(3,633	)		(3,268	)		(2,959	)		(3,147	)
Post-employment benefit plans service cost		(137	)		(63	)		(74	)		(269	)		(65	)		(65	)		(64	)		(75	)
Adjusted EBITDA		4,905			2,476			2,429			9,607			2,404			2,454			2,331			2,418
Adjusted EBITDA margin		43.0%			43.5%			42.6%			42.0%			39.4%			42.4%			43.5%			42.9%
Severance, acquisition and other costs		(96	)		(7	)		(89	)		(116	)		(52	)		(26	)		(22	)		(16	)
Depreciation		(1,800	)		(905	)		(895	)		(3,475	)		(872	)		(876	)		(869	)		(858	)
Amortization		(486	)		(248	)		(238	)		(929	)		(233	)		(232	)		(234	)		(230	)
Finance costs
Interest expense		(535	)		(268	)		(267	)		(1,110	)		(274	)		(279	)		(280	)		(277	)
Interest on post-employment benefit obligations		(10	)		(5	)		(5	)		(46	)		(11	)		(12	)		(11	)		(12	)
Impairment of assets		(167	)		(164	)		(3	)		(472	)		(12	)		(4	)		(449	)		(7	)
Other income (expense)		99			91			8			(194	)		(38	)		(29	)		(80	)		(47	)
Income taxes		(489	)		(236	)		(253	)		(792	)		(191	)		(262	)		(96	)		(243	)
Net earnings from continuing operations		1,421			734			687			2,473			721			734			290			728
Net earnings from discontinued operations		-			-			-			226			211			6			4			5
Net earnings		1,421			734			687			2,699			932			740			294			733
Net earnings from continuing operations attributable to:
Common shareholders		1,327			685			642			2,272			678			686			233			675
Preferred shareholders		64			32			32			136			32			32			34			38
Non-controlling interest		30			17			13			65			11			16			23			15
Net earnings from continuing operations		1,421			734			687			2,473			721			734			290			728
Net earnings attributable to:
Common shareholders		1,327			685			642			2,498			889			692			237			680
Preferred shareholders		64			32			32			136			32			32			34			38
Non-controlling interest		30			17			13			65			11			16			23			15
Net earnings		1,421			734			687			2,699			932			740			294			733
Net earnings per common share - basic and diluted
Continuing operations	$	1.47		$	0.76		$	0.71		$	2.51		$	0.75		$	0.76		$	0.26		$	0.74
Discontinued operations	$	-		$	-		$	-		$	0.25		$	0.23		$	0.01		$	-		$	0.01
Net earnings per common share - basic and diluted	$	1.47		$	0.76		$	0.71		$	2.76		$	0.98		$	0.77		$	0.26		$	0.75
Dividends per common share	$	1.7500		$	0.8750		$	0.8750		$	3.3300		$	0.8325		$	0.8325		$	0.8325		$	0.8325
Weighted average number of common shares outstanding - basic (millions)		904.7			905.0			904.5			904.3			904.4			904.3			904.3			904.1
Weighted average number of common shares outstanding - diluted (millions)		904.8			905.3			904.5			904.4			904.4			904.4			904.4			904.5
Number of common shares outstanding (millions)		905.7			905.7			904.6			904.4			904.4			904.3			904.3			904.3
Adjusted net earnings and EPS
Net earnings attributable to common shareholders		1,327			685			642			2,498			889			692			237			680
Severance, acquisition and other costs		70			5			65			85			38			19			16			12
Net mark-to-market (gains) losses on derivatives used to economically hedge equity settled share-based compensation plans		(117	)		(73	)		(44	)		37			-			10			7			20
Net losses (gains) on investments		14			14			-			(46	)		(3	)		(22	)		(11	)		(10	)
Early debt redemption costs		39			-			39			37			9			16			-			12
Impairment of assets		122			120			2			345			9			3			328			5
Net earnings from discontinued operations		-			-			-			(226	)		(211	)		(6	)		(4	)		(5	)
Adjusted net earnings		1,455			751			704			2,730			731			712			573			714
Adjusted EPS	$	1.61		$	0.83		$	0.78		$	3.02		$	0.81		$	0.79		$	0.63		$	0.79

^(A) Excludes post-employment benefit plans service cost    

BCE Supplementary Financial Information - Second Quarter 2021 Page 3

BCE ⁽¹⁾

Segmented Data

(In millions of Canadian dollars, except where otherwise indicated) (unaudited)	Q2 2021			Q2 2020			$ change			% change		YTD 2021			YTD 2020			$ change			% change
Operating revenues
Bell Wireless		2,128			1,922			206			10.7%		4,228			3,957			271			6.8%
Bell Wireline		3,003			3,043			(40	)		(1.3%)		6,084			6,079			5			0.1%
Bell Media		755			579			176			30.4%		1,468			1,331			137			10.3%
Inter-segment eliminations		(188	)		(190	)		2			1.1%		(376	)		(373	)		(3	)		(0.8%)
Total		5,698			5,354			344			6.4%		11,404			10,994			410			3.7%
Operating costs
Bell Wireless		(1,159	)		(1,043	)		(116	)		(11.1%)		(2,336	)		(2,150	)		(186	)		(8.7%)
Bell Wireline		(1,710	)		(1,764	)		54			3.1%		(3,428	)		(3,465	)		37			1.1%
Bell Media		(541	)		(406	)		(135	)		(33.3%)		(1,111	)		(1,003	)		(108	)		(10.8%)
Inter-segment eliminations		188			190			(2	)		(1.1%)		376			373			3			0.8%
Total		(3,222	)		(3,023	)		(199	)		(6.6%)		(6,499	)		(6,245	)		(254	)		(4.1%)
Adjusted EBITDA
Bell Wireless		969			879			90			10.2%		1,892			1,807			85			4.7%
Margin		45.5%			45.7%						(0.2) pts		44.7%			45.7%						(1.0) pts
Bell Wireline		1,293			1,279			14			1.1%		2,656			2,614			42			1.6%
Margin		43.1%			42.0%						1.1 pts		43.7%			43.0%						0.7 pts
Bell Media		214			173			41			23.7%		357			328			29			8.8%
Margin		28.3%			29.9%						(1.6) pts		24.3%			24.6%						(0.3) pts
Total		2,476			2,331			145			6.2%		4,905			4,749			156			3.3%
Margin		43.5%			43.5%						-		43.0%			43.2%						(0.2) pts
Capital expenditures
Bell Wireless		306			182			(124	)		(68.1%)		592			312			(280	)		(89.7%)
Capital intensity (3)		14.4%			9.5%						(4.9) pts		14.0%			7.9%						(6.1) pts
Bell Wireline		877			694			(183	)		(26.4%)		1,584			1,316			(268	)		(20.4%)
Capital intensity		29.2%			22.8%						(6.4) pts		26.0%			21.6%						(4.4) pts
Bell Media		24			24			-			-		43			49			6			12.2%
Capital intensity		3.2%			4.1%						0.9 pts		2.9%			3.7%						0.8 pts
Total		1,207			900			(307	)		(34.1%)		2,219			1,677			(542	)		(32.3%)
Capital intensity		21.2%			16.8%						(4.4) pts		19.5%			15.3%						(4.2) pts

BCE Supplementary Financial Information - Second Quarter 2021 Page 4

BCE

Segmented Data - Historical Trend

(In millions of Canadian dollars, except where otherwise indicated) (unaudited)	YTD 2021		Q2 21		Q1 21		TOTAL 2020		Q4 20		Q3 20		Q2 20		Q1 20
Operating revenues
Bell Wireless	4,228		2,128		2,100		8,683		2,408		2,318		1,922		2,035
Bell Wireline	6,084		3,003		3,081		12,206		3,095		3,032		3,043		3,036
Bell Media	1,468		755		713		2,750		791		628		579		752
Inter-segment eliminations	(376	)	(188	)	(188	)	(756	)	(192	)	(191	)	(190	)	(183	)
Total	11,404		5,698		5,706		22,883		6,102		5,787		5,354		5,640
Operating costs
Bell Wireless	(2,336	)	(1,159	)	(1,177	)	(5,017	)	(1,505	)	(1,362	)	(1,043	)	(1,107	)
Bell Wireline	(3,428	)	(1,710	)	(1,718	)	(6,960	)	(1,783	)	(1,712	)	(1,764	)	(1,701	)
Bell Media	(1,111	)	(541	)	(570	)	(2,055	)	(602	)	(450	)	(406	)	(597	)
Inter-segment eliminations	376		188		188		756		192		191		190		183
Total	(6,499	)	(3,222	)	(3,277	)	(13,276	)	(3,698	)	(3,333	)	(3,023	)	(3,222	)
Adjusted EBITDA
Bell Wireless	1,892		969		923		3,666		903		956		879		928
Margin	44.7%		45.5%		44.0%		42.2%		37.5%		41.2%		45.7%		45.6%
Bell Wireline	2,656		1,293		1,363		5,246		1,312		1,320		1,279		1,335
Margin	43.7%		43.1%		44.2%		43.0%		42.4%		43.5%		42.0%		44.0%
Bell Media	357		214		143		695		189		178		173		155
Margin	24.3%		28.3%		20.1%		25.3%		23.9%		28.3%		29.9%		20.6%
Total	4,905		2,476		2,429		9,607		2,404		2,454		2,331		2,418
Margin	43.0%		43.5%		42.6%		42.0%		39.4%		42.4%		43.5%		42.9%
Capital expenditures
Bell Wireless	592		306		286		916		392		212		182		130
Capital intensity	14.0%		14.4%		13.6%		10.5%		16.3%		9.1%		9.5%		6.4%
Bell Wireline	1,584		877		707		3,161		1,053		792		694		622
Capital intensity	26.0%		29.2%		22.9%		25.9%		34.0%		26.1%		22.8%		20.5%
Bell Media	43		24		19		125		49		27		24		25
Capital intensity	2.9%		3.2%		2.7%		4.5%		6.2%		4.3%		4.1%		3.3%
Total	2,219		1,207		1,012		4,202		1,494		1,031		900		777
Capital intensity	19.5%		21.2%		17.7%		18.4%		24.5%		17.8%		16.8%		13.8%

BCE Supplementary Financial Information - Second Quarter 2021 Page 5

Bell Wireless ⁽¹⁾

(In millions of Canadian dollars, except where otherwise indicated) (unaudited)	Q2 2021			Q2 2020			% change		YTD 2021			YTD 2020			% change
Bell Wireless
Operating revenues
External service revenues		1,569			1,481			5.9%		3,072			3,016			1.9%
Inter-segment service revenues		11			12			(8.3%)		22			24			(8.3%)
Total operating service revenues		1,580			1,493			5.8%		3,094			3,040			1.8%
External product revenues		546			428			27.6%		1,130			915			23.5%
Inter-segment product revenues		2			1			100.0%		4			2			100.0%
Total operating product revenues		548			429			27.7%		1,134			917			23.7%
Total external revenues		2,115			1,909			10.8%		4,202			3,931			6.9%
Total operating revenues		2,128			1,922			10.7%		4,228			3,957			6.8%
Operating costs		(1,159	)		(1,043	)		(11.1%)		(2,336	)		(2,150	)		(8.7%)
Adjusted EBITDA		969			879			10.2%		1,892			1,807			4.7%
Adjusted EBITDA margin (Total operating revenues)		45.5%			45.7%			(0.2) pts		44.7%			45.7%			(1.0) pts
Capital expenditures		306			182			(68.1%)		592			312			(89.7%)
Capital intensity		14.4%			9.5%			(4.9) pts		14.0%			7.9%			(6.1) pts
Mobile phone subscribers(3)(A)
Gross activations		348,403			309,133			12.7%		688,530			642,690			7.1%
Postpaid		242,720			179,589			35.2%		491,710			389,139			26.4%
Prepaid		105,683			129,544			(18.4%)		196,820			253,551			(22.4%)
Net activations (losses)		46,247			12,110			n.m.		48,652			9,614			n.m.
Postpaid		44,433			(960	)		n.m.		77,358			599			n.m.
Prepaid		1,814			13,070			(86.1%)		(28,706	)		9,015			n.m.
Subscribers end of period (EOP)		9,212,995			8,983,282			2.6%		9,212,995			8,983,282			2.6%
Postpaid		8,405,697			8,176,245			2.8%		8,405,697			8,176,245			2.8%
Prepaid		807,298			807,037			-		807,298			807,037			-
Blended average billing per user (ABPU) ($/month)(3)		72.21			69.88			3.3%		71.28			71.33			(0.1%)
Blended churn (%) (average per month)(3)		1.10%			1.11%			0.01 pts		1.17%			1.18%			0.01 pts
Postpaid		0.83%			0.76%			(0.07) pts		0.86%			0.83%			(0.03) pts
Prepaid		3.98%			4.63%			0.65 pts		4.33%			4.83%			0.50 pts
Mobile connected device subscribers (3)(A)
Net activations		47,449			38,843			22.2%		121,608			87,807			38.5%
Subscribers EOP		2,177,761			1,915,979			13.7%		2,177,761			1,915,979			13.7%

n.m. : not meaningful

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

BCE Supplementary Financial Information - Second Quarter 2021 Page 6

Bell Wireless - Historical Trend

(In millions of Canadian dollars, except where otherwise indicated) (unaudited)	YTD 2021			Q2 21			Q1 21			TOTAL 2020			Q4 20			Q3 20			Q2 20			Q1 20
Bell Wireless
Operating revenues
External service revenues		3,072			1,569			1,503			6,122			1,543			1,563			1,481			1,535
Inter-segment service revenues		22			11			11			47			11			12			12			12
Total operating service revenues		3,094			1,580			1,514			6,169			1,554			1,575			1,493			1,547
External product revenues		1,130			546			584			2,508			851			742			428			487
Inter-segment product revenues		4			2			2			6			3			1			1			1
Total operating product revenues		1,134			548			586			2,514			854			743			429			488
Total external revenues		4,202			2,115			2,087			8,630			2,394			2,305			1,909			2,022
Total operating revenues		4,228			2,128			2,100			8,683			2,408			2,318			1,922			2,035
Operating costs		(2,336	)		(1,159	)		(1,177	)		(5,017	)		(1,505	)		(1,362	)		(1,043	)		(1,107	)
Adjusted EBITDA		1,892			969			923			3,666			903			956			879			928
Adjusted EBITDA margin (Total operating revenues)		44.7%			45.5%			44.0%			42.2%			37.5%			41.2%			45.7%			45.6%
Capital expenditures		592			306			286			916			392			212			182			130
Capital intensity		14.0%			14.4%			13.6%			10.5%			16.3%			9.1%			9.5%			6.4%
Mobile phone subscribers(A)
Gross activations		688,530			348,403			340,127			1,545,173			445,322			457,161			309,133			333,557
Postpaid		491,710			242,720			248,990			1,025,748			328,051			308,558			179,589			209,550
Prepaid		196,820			105,683			91,137			519,425			117,271			148,603			129,544			124,007
Net activations (losses)		48,652			46,247			2,405			190,675			61,716			119,345			12,110			(2,496	)
Postpaid		77,358			44,433			32,925			152,693			73,388			78,706			(960	)		1,559
Prepaid		(28,706	)		1,814			(30,520	)		37,982			(11,672	)		40,639			13,070			(4,055	)
Subscribers EOP		9,212,995			9,212,995			9,166,748			9,164,343			9,164,343			9,102,627			8,983,282			8,971,172
Postpaid		8,405,697			8,405,697			8,361,264			8,328,339			8,328,339			8,254,951			8,176,245			8,177,205
Prepaid		807,298			807,298			805,484			836,004			836,004			847,676			807,037			793,967
Blended ABPU ($/month)		71.28			72.21			70.34			72.01			72.13			73.25			69.88			72.78
Blended churn (%) (average per month)		1.17%			1.10%			1.23%			1.26%			1.40%			1.25%			1.11%			1.26%
Postpaid		0.86%			0.83%			0.89%			0.92%			1.06%			0.98%			0.76%			0.89%
Prepaid		4.33%			3.98%			4.68%			4.60%			4.79%			3.98%			4.63%			5.03%
Mobile connected device subscribers(A)
Net activations		121,608			47,449			74,159			227,981			98,949			41,225			38,843			48,964
Subscribers EOP		2,177,761			2,177,761			2,130,312			2,056,153			2,056,153			1,957,204			1,915,979			1,877,136

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

BCE Supplementary Financial Information - Second Quarter 2021 Page 7

Bell Wireline ⁽¹⁾

(In millions of Canadian dollars, except where otherwise indicated) (unaudited)	Q2 2021			Q2 2020			% change		YTD 2021			YTD 2020			% change
Bell Wireline
Operating revenues
Data		1,944			1,916			1.5%		3,909			3,807			2.7%
Voice		794			863			(8.0%)		1,597			1,735			(8.0%)
Other services		67			58			15.5%		141			120			17.5%
Total external service revenues		2,805			2,837			(1.1%)		5,647			5,662			(0.3%)
Inter-segment service revenues		86			80			7.5%		171			156			9.6%
Total operating service revenues		2,891			2,917			(0.9%)		5,818			5,818			-
Data		101			113			(10.6%)		245			236			3.8%
Equipment and other		11			13			(15.4%)		21			25			(16.0%)
Total external product revenues		112			126			(11.1%)		266			261			1.9%
Inter-segment product revenues		-			-			-		-			-			-
Total operating product revenues		112			126			(11.1%)		266			261			1.9%
Total external revenues		2,917			2,963			(1.6%)		5,913			5,923			(0.2%)
Total operating revenues		3,003			3,043			(1.3%)		6,084			6,079			0.1%
Operating costs		(1,710	)		(1,764	)		3.1%		(3,428	)		(3,465	)		1.1%
Adjusted EBITDA		1,293			1,279			1.1%		2,656			2,614			1.6%
Adjusted EBITDA margin		43.1%			42.0%			1.1 pts		43.7%			43.0%			0.7 pts
Capital expenditures		877			694			(26.4%)		1,584			1,316			(20.4%)
Capital intensity		29.2%			22.8%			(6.4) pts		26.0%			21.6%			(4.4) pts
Retail high-speed Internet subscribers (3)
Retail net activations		17,680			19,023			(7.1%)		38,888			41,618			(6.6%)
Retail subscribers EOP(A)		3,748,256			3,597,219			4.2%		3,748,256			3,597,219			4.2%
Retail TV subscribers (3)
Retail net subscriber (losses) activations		(4,928	)		(15,544	)		68.3%		(14,040	)		(34,099	)		58.8%
Internet protocol television (IPTV)		4,540			(3,604	)		n.m.		15,236			(752	)		n.m.
Satellite		(9,468	)		(11,940	)		20.7%		(29,276	)		(33,347	)		12.2%
Total retail subscribers EOP(B)		2,718,440			2,738,365			(0.7%)		2,718,440			2,738,365			(0.7%)
IPTV		1,821,609			1,766,430			3.1%		1,821,609			1,766,430			3.1%
Satellite(B)		896,831			971,935			(7.7%)		896,831			971,935			(7.7%)
Retail residential network access services (NAS)(3)
Retail residential NAS lines net losses		(51,292	)		(48,405	)		(6.0%)		(102,361	)		(110,000	)		6.9%
Retail residential NAS lines		2,381,571			2,587,483			(8.0%)		2,381,571			2,587,483			(8.0%)

n.m. : not meaningful

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

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

BCE Supplementary Financial Information - Second Quarter 2021 Page 8

Bell Wireline - Historical Trend

(In millions of Canadian dollars, except where otherwise indicated) (unaudited)	YTD 2021			Q2 21			Q1 21			TOTAL 2020			Q4 20			Q3 20			Q2 20			Q1 20
Bell Wireline
Operating revenues
Data		3,909			1,944			1,965			7,691			1,953			1,931			1,916			1,891
Voice		1,597			794			803			3,402			828			839			863			872
Other services		141			67			74			248			67			61			58			62
Total external service revenues		5,647			2,805			2,842			11,341			2,848			2,831			2,837			2,825
Inter-segment service revenues		171			86			85			321			85			80			80			76
Total operating service revenues		5,818			2,891			2,927			11,662			2,933			2,911			2,917			2,901
Data		245			101			144			494			148			110			113			123
Equipment and other		21			11			10			49			13			11			13			12
Total external product revenues		266			112			154			543			161			121			126			135
Inter-segment product revenues		-			-			-			1			1			-			-			-
Total operating product revenues		266			112			154			544			162			121			126			135
Total external revenues		5,913			2,917			2,996			11,884			3,009			2,952			2,963			2,960
Total operating revenues		6,084			3,003			3,081			12,206			3,095			3,032			3,043			3,036
Operating costs		(3,428	)		(1,710	)		(1,718	)		(6,960	)		(1,783	)		(1,712	)		(1,764	)		(1,701	)
Adjusted EBITDA		2,656			1,293			1,363			5,246			1,312			1,320			1,279			1,335
Adjusted EBITDA margin		43.7%			43.1%			44.2%			43.0%			42.4%			43.5%			42.0%			44.0%
Capital expenditures		1,584			877			707			3,161			1,053			792			694			622
Capital intensity		26.0%			29.2%			22.9%			25.9%			34.0%			26.1%			22.8%			20.5%
Retail high-speed Internet subscribers
Retail net activations		38,888			17,680			21,208			148,989			44,512			62,859			19,023			22,595
Retail subscribers EOP(A)		3,748,256			3,748,256			3,730,576			3,704,590			3,704,590			3,660,078			3,597,219			3,578,196
Retail TV subscribers
Retail net subscriber (losses) activations		(14,040	)		(4,928	)		(9,112	)		(33,859	)		536			(296	)		(15,544	)		(18,555	)
IPTV		15,236			4,540			10,696			39,191			21,106			18,837			(3,604	)		2,852
Satellite		(29,276	)		(9,468	)		(19,808	)		(73,050	)		(20,570	)		(19,133	)		(11,940	)		(21,407	)
Total retail subscribers EOP(B)		2,718,440			2,718,440			2,723,368			2,738,605			2,738,605			2,738,069			2,738,365			2,753,909
IPTV		1,821,609			1,821,609			1,817,069			1,806,373			1,806,373			1,785,267			1,766,430			1,770,034
Satellite(B)		896,831			896,831			906,299			932,232			932,232			952,802			971,935			983,875
Retail residential NAS
Retail residential NAS lines net losses		(102,361	)		(51,292	)		(51,069	)		(213,551	)		(53,759	)		(49,792	)		(48,405	)		(61,595	)
Retail residential NAS lines		2,381,571			2,381,571			2,432,863			2,483,932			2,483,932			2,537,691			2,587,483			2,635,888

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

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

BCE Supplementary Financial Information - Second Quarter 2021 Page 9

BCE

Net debt and other information

BCE - Net debt and preferred shares
(In millions of Canadian dollars, except where otherwise indicated) (unaudited)
																June 30			March 31			December 31
																2021			2021			2020
Debt due within one year																2,304			3,786			2,417
Long-term debt																25,422			24,965			23,906
50% of preferred shares																2,002			2,002			2,002
Cash and cash equivalents																(1,752	)		(2,607	)		(224	)
Net debt (2)																27,976			28,146			28,101
Net debt leverage ratio (2)																2.87			2.93			2.93
Adjusted EBITDA /net interest expense ratio (2)																8.62			8.40			8.32
Cash flow information
(In millions of Canadian dollars, except where otherwise indicated) (unaudited)		Q2			Q2								YTD			YTD
	2021			2020			$ change			% change		2021			2020			$ change			% change
Free cash flow (FCF) (2)
Cash flows from operating activities		2,499			2,562			(63	)		(2.5%)		4,491			4,013			478			11.9%
Capital expenditures		(1,207	)		(900	)		(307	)		(34.1%)		(2,219	)		(1,677	)		(542	)		(32.3%)
Cash dividends paid on preferred shares		(31	)		(33	)		2			6.1%		(62	)		(69	)		7			10.1%
Cash dividends paid by subsidiaries to non-controlling interest		(15	)		(12	)		(3	)		(25.0%)		(28	)		(26	)		(2	)		(7.7%)
Acquisition and other costs paid		2			11			(9	)		(81.8%)		6			20			(14	)		(70.0%)
Cash from discontinued operations (included in cash flows from operating activities)		-			(17	)		17			100.0%		-			(39	)		39			100.0%
FCF		1,248			1,611			(363	)		(22.5%)		2,188			2,222			(34	)		(1.5%)
Cash flow information - Historical trend
(In millions of Canadian dollars, except where otherwise indicated) (unaudited)		YTD			Q2			Q1			TOTAL		Q4			Q3			Q2			Q1
		2021			2021			2021			2020		2020			2020			2020			2020
FCF
Cash flows from operating activities		4,491			2,499			1,992			7,754		1,631			2,110			2,562			1,451
Capital expenditures		(2,219	)		(1,207	)		(1,012	)		(4,202)		(1,494	)		(1,031	)		(900	)		(777)
Cash dividends paid on preferred shares		(62	)		(31	)		(31	)		(132)		(31	)		(32	)		(33	)		(36)
Cash dividends paid by subsidiaries to non-controlling interest		(28	)		(15	)		(13	)		(53)		(16	)		(11	)		(12	)		(14)
Acquisition and other costs paid		6			2			4			35		2			13			11			9
Cash from discontinued operations (included in cash flows from operating activities)		-			-			-			(54)		-			(15	)		(17	)		(22)
FCF		2,188			1,248			940			3,348		92			1,034			1,611			611

BCE Supplementary Financial Information - Second Quarter 2021 Page 10

BCE

Consolidated Statements of Financial Position

(In millions of Canadian dollars, except where otherwise indicated) (unaudited)	June 30 2021			March 31 2021			December 31 2020
ASSETS
Current assets
Cash		1,752			1,907			224
Cash equivalents		-			700			-
Trade and other receivables		3,244			3,247			3,528
Inventory		418			459			439
Contract assets		467			563			687
Contract costs		441			424			402
Prepaid expenses		346			345			209
Other current assets		278			244			199
Total current assets		6,946			7,889			5,688
Non-current assets
Contract assets		230			236			256
Contract costs		364			344			362
Property, plant and equipment		27,554			27,370			27,513
Intangible assets		13,263			13,227			13,102
Deferred tax assets		118			107			106
Investments in associates and joint ventures		725			745			756
Post-employment benefit assets		3,185			2,601			1,277
Other non-current assets		1,167			1,124			1,001
Goodwill		10,579			10,606			10,604
Total non-current assets		57,185			56,360			54,977
Total assets		64,131			64,249			60,665
LIABILITIES
Current liabilities
Trade payables and other liabilities		3,904			3,723			3,935
Contract liabilities		767			762			717
Interest payable		228			181			222
Dividends payable		806			804			766
Current tax liabilities		344			271			214
Debt due within one year		2,304			3,786			2,417
Total current liabilities		8,353			9,527			8,271
Non-current liabilities
Contract liabilities		242			242			242
Long-term debt		25,422			24,965			23,906
Deferred tax liabilities		4,530			4,285			3,810
Post-employment benefit obligations		1,734			1,723			1,962
Other non-current liabilities		1,081			1,141			1,145
Total non-current liabilities		33,009			32,356			31,065
Total liabilities		41,362			41,883			39,336
EQUITY
Equity attributable to BCE shareholders
Preferred shares		4,003			4,003			4,003
Common shares		20,467			20,400			20,390
Contributed surplus		1,156			1,154			1,174
Accumulated other comprehensive income		204			163			103
Deficit		(3,401	)		(3,693	)		(4,681	)
Total equity attributable to BCE shareholders		22,429			22,027			20,989
Non-controlling interest		340			339			340
Total equity		22,769			22,366			21,329
Total liabilities and equity		64,131			64,249			60,665
Number of common shares outstanding (millions)		905.7			904.6			904.4

BCE Supplementary Financial Information - Second Quarter 2021 Page 11

BCE

Consolidated Cash Flow Data

	Q2			Q2						YTD			YTD
(In millions of Canadian dollars, except where otherwise indicated) (unaudited)	2021			2020			$ change			2021			2020			$ change
Net earnings from continuing operations		734			290			444			1,421			1,018			403
Adjustments to reconcile net earnings from continuing operations to cash flows from operating activities
Severance, acquisition and other costs		7			22			(15	)		96			38			58
Depreciation and amortization		1,153			1,103			50			2,286			2,191			95
Post-employment benefit plans cost		68			75			(7	)		147			162			(15	)
Net interest expense		263			275			(12	)		526			545			(19	)
Impairment of assets		164			449			(285	)		167			456			(289	)
Income taxes		236			96			140			489			339			150
Contributions to post-employment benefit plans		(70	)		(71	)		1			(149	)		(150	)		1
Payments under other post-employment benefit plans		(16	)		(12	)		(4	)		(31	)		(29	)		(2	)
Severance and other costs paid		(79	)		(13	)		(66	)		(122	)		(48	)		(74	)
Interest paid		(230	)		(240	)		10			(536	)		(556	)		20
Income taxes paid (net of refunds)		(95	)		6			(101	)		(204	)		(227	)		23
Acquisition and other costs paid		(2	)		(11	)		9			(6	)		(20	)		14
Change in contract assets		102			239			(137	)		246			394			(148	)
Change in wireless device financing plan receivables		(61	)		(150	)		89			(152	)		(226	)		74
Net change in operating assets and liabilities		325			487			(162	)		313			87			226
Cash from discontinued operations		-			17			(17	)		-			39			(39	)
Cash flows from operating activities		2,499			2,562			(63	)		4,491			4,013			478
Capital expenditures		(1,207	)		(900	)		(307	)		(2,219	)		(1,677	)		(542	)
Cash dividends paid on preferred shares		(31	)		(33	)		2			(62	)		(69	)		7
Cash dividends paid by subsidiaries to non-controlling interest		(15	)		(12	)		(3	)		(28	)		(26	)		(2	)
Acquisition and other costs paid		2			11			(9	)		6			20			(14	)
Cash from discontinued operations (included in cash flows from operating activities)		-			(17	)		17			-			(39	)		39
Free cash flow		1,248			1,611			(363	)		2,188			2,222			(34	)
Cash from discontinued operations (included in cash flows from operating activities)		-			17			(17	)		-			39			(39	)
Business acquisitions		(11	)		(23	)		12			(11	)		(23	)		12
Acquisition and other costs paid		(2	)		(11	)		9			(6	)		(20	)		14
Other investing activities		(17	)		(13	)		(4	)		(38	)		(19	)		(19	)
Cash used in discontinued operations (included in cash flows from investing activities)		-			(8	)		8			-			(15	)		15
Increase (decrease) in notes payable and bank advances		311			(1,204	)		1,515			(46	)		(1,434	)		1,388
Decrease in securitized trade receivables		-			(400	)		400			(13	)		-			(13	)
Issue of long-term debt		500			1,975			(1,475	)		3,415			5,256			(1,841	)
Repayment of long-term debt		(2,041	)		(2,221	)		180			(2,267	)		(2,930	)		663
Issue of common shares		63			-			63			73			22			51
Purchase of shares for settlement of share-based payments		(71	)		(75	)		4			(162	)		(169	)		7
Cash dividends paid on common shares		(791	)		(753	)		(38	)		(1,544	)		(1,469	)		(75	)
Other financing activities		(44	)		(25	)		(19	)		(61	)		(55	)		(6	)
Cash used in discontinued operations (included in cash flows from financing activities)		-			(2	)		2			-			(3	)		3
		(2,103	)		(2,743	)		640			(660	)		(820	)		160
Net (decrease) increase in cash and cash equivalents		(855	)		(1,132	)		277			1,528			1,402			126
Cash and cash equivalents at beginning of period		2,607			2,679			(72	)		224			145			79
Cash and cash equivalents at end of period		1,752			1,547			205			1,752			1,547			205

BCE Supplementary Financial Information - Second Quarter 2021 Page 12

BCE

Consolidated Cash Flow Data - Historical Trend

(In millions of Canadian dollars, except where otherwise indicated) (unaudited)	YTD 2021			Q2 21			Q1 21			TOTAL 2020			Q4 20			Q3 20			Q2 20			Q1 20
Net earnings from continuing operations		1,421			734			687			2,473			721			734			290			728
Adjustments to reconcile net earnings from continuing operations to cash flows from operating activities
Severance, acquisition and other costs		96			7			89			116			52			26			22			16
Depreciation and amortization		2,286			1,153			1,133			4,404			1,105			1,108			1,103			1,088
Post-employment benefit plans cost		147			68			79			315			76			77			75			87
Net interest expense		526			263			263			1,087			269			273			275			270
Impairment of assets		167			164			3			472			12			4			449			7
Losses on investments		-			-			-			(3	)		(3	)		-			-			-
Income taxes		489			236			253			792			191			262			96			243
Contributions to post-employment benefit plans		(149	)		(70	)		(79	)		(297	)		(78	)		(69	)		(71	)		(79	)
Payments under other post-employment benefit plans		(31	)		(16	)		(15	)		(61	)		(17	)		(15	)		(12	)		(17	)
Severance and other costs paid		(122	)		(79	)		(43	)		(78	)		(19	)		(11	)		(13	)		(35	)
Interest paid		(536	)		(230	)		(306	)		(1,112	)		(235	)		(321	)		(240	)		(316	)
Income taxes paid (net of refunds)		(204	)		(95	)		(109	)		(846	)		(383	)		(236	)		6			(233	)
Acquisition and other costs paid		(6	)		(2	)		(4	)		(35	)		(2	)		(13	)		(11	)		(9	)
Change in contract assets		246			102			144			704			132			178			239			155
Change in wireless device financing plan receivables		(152	)		(61	)		(91	)		(867	)		(319	)		(322	)		(150	)		(76	)
Net change in operating assets and liabilities		313			325			(12	)		636			129			420			487			(400	)
Cash from discontinued operations		-			-			-			54			-			15			17			22
Cash flows from operating activities		4,491			2,499			1,992			7,754			1,631			2,110			2,562			1,451
Capital expenditures		(2,219	)		(1,207	)		(1,012	)		(4,202	)		(1,494	)		(1,031	)		(900	)		(777	)
Cash dividends paid on preferred shares		(62	)		(31	)		(31	)		(132	)		(31	)		(32	)		(33	)		(36	)
Cash dividends paid by subsidiaries to non-controlling interest		(28	)		(15	)		(13	)		(53	)		(16	)		(11	)		(12	)		(14	)
Acquisition and other costs paid		6			2			4			35			2			13			11			9
Cash from discontinued operations (included in cash flows from operating activities)		-			-			-			(54	)		-			(15	)		(17	)		(22	)
Free cash flow		2,188			1,248			940			3,348			92			1,034			1,611			611
Cash from discontinued operations (included in cash flows from operating activities)		-			-			-			54			-			15			17			22
Business acquisitions		(11	)		(11	)		-			(65	)		(42	)		-			(23	)		-
Acquisition and other costs paid		(6	)		(2	)		(4	)		(35	)		(2	)		(13	)		(11	)		(9	)
Acquisition of spectrum licences		-			-			-			(86	)		-			(85	)		-			(1	)
Other investing activities		(38	)		(17	)		(21	)		(79	)		(12	)		(49	)		(13	)		(5	)
Cash from (used in) discontinued operations (included in cash flows from investing activities)		-			-			-			892			913			(6	)		(8	)		(7	)
(Decrease) increase in notes payable and bank advances		(46	)		311			(357	)		(1,641	)		(524	)		317			(1,204	)		(230	)
(Decrease) increase in securitized trade receivables		(13	)		-			(13	)		-			23			(23	)		(400	)		400
Issue of long-term debt		3,415			500			2,915			6,006			-			750			1,975			3,281
Repayment of long-term debt		(2,267	)		(2,041	)		(226	)		(5,003	)		(1,094	)		(979	)		(2,221	)		(709	)
Issue of common shares		73			63			10			26			4			-			-			22
Purchase of shares for settlement of share-based payments		(162	)		(71	)		(91	)		(263	)		(54	)		(40	)		(75	)		(94	)
Cash dividends paid on common shares		(1,544	)		(791	)		(753	)		(2,975	)		(753	)		(753	)		(753	)		(716	)
Other financing activities		(61	)		(44	)		(17	)		(93	)		(6	)		(32	)		(25	)		(30	)
Cash used in discontinued operations (included in cash flows from financing activities)		-			-			-			(7	)		-			(4	)		(2	)		(1	)
		(660	)		(2,103	)		1,443			(3,269	)		(1,547	)		(902	)		(2,743	)		1,923
Net increase (decrease) in cash and cash equivalents		1,528			(855	)		2,383			79			(1,455	)		132			(1,132	)		2,534
Cash and cash equivalents at beginning of period		224			2,607			224			145			1,679			1,547			2,679			145
Cash and cash equivalents at end of period		1,752			1,752			2,607			224			224			1,679			1,547			2,679

BCE Supplementary Financial Information - Second Quarter 2021 Page 13

Accompanying Notes

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

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

(2) Non-GAAP Financial Measures

Adjusted EBITDA and adjusted EBITDA margin

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

We define adjusted EBITDA as operating revenues less operating costs (including post-employment benefit plans service cost) as shown in BCE’s consolidated income statements. Adjusted EBITDA for BCE’s segments is the same as segment profit as reported in BCE’s consolidated financial statements. We define adjusted EBITDA margin as adjusted EBITDA divided by operating revenues.

We use adjusted EBITDA and adjusted EBITDA margin to evaluate the performance of our businesses as they reflect their ongoing profitability. We believe that certain investors and analysts use adjusted EBITDA to measure a company’s ability to service debt and to meet other payment obligations or as a common measurement to value companies in the telecommunications industry. We believe that certain investors and analysts also use adjusted EBITDA and adjusted EBITDA margin to evaluate the performance of our businesses. Adjusted EBITDA also is one component in the determination of short-term incentive compensation for all management employees.

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

Adjusted net earnings and adjusted EPS

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

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

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

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

BCE Supplementary Financial Information - Second Quarter 2021 Page 14

Free cash flow

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

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

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

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

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

Net debt

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

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

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

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

Net debt leverage ratio

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

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

Adjusted EBITDA to net interest expense ratio

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

BCE Supplementary Financial Information - Second Quarter 2021 Page 15

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

(3) Key performance indicators (KPIs)

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

Capital intensity is capital expenditures divided by operating revenues.

Mobile phone average billing per user (ABPU) or subscriber approximates the average amount billed to customers on a monthly basis, including monthly billings related to device financing receivables owing from customers on contract, which is used to track our recurring billing streams. Mobile phone blended ABPU is calculated by dividing customer billings by the average mobile phone subscriber base for the specified period and is expressed as a dollar unit per month.

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

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

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

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

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

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

BCE Supplementary Financial Information - Second Quarter 2021 Page 16