EX-99.2 3 supp_q42011.htm SUPPLEMENTARY FINANCIAL INFORMATION - FOURTH QUARTER 2011 Supplementary Financial Information

EXHIBIT 99.2

 

BCE Inc. (1)
Consolidated Operational Data

($ millions of Canadian dollars, except per share amounts) (unaudited)

    Q4
2011		     Q4
2010		       $ change   % change       Total
2011		     Total
2010		      

$ change

  

% change

  

Operating revenues

   5,166     4,679       487   10.4 %     19,497     18,069       1,428   7.9 %

Operating costs (A)

   (3,238 )   (2,882 )     (356 ) (12.4 %)     (11,627 )   (10,684 )     (943 ) (8.8 %)

Pension current service costs

   (59 )   (49 )     (10 ) (20.4 %)     (241 )   (200 )     (41 ) (20.5 %)

EBITDA (3)

   1,869     1,748       121   6.9 %     7,629     7,185       444   6.2 %

EBITDA margin (5)

  

36.2

 %  

37.4

 %        

(1.2

 ) pts    

39.1

 %  

39.8

 %        

(0.7

 ) pts

Severance, acquisition and other costs

   1     (86 )     87   n.m.       (409 )   (262 )     (147 ) (56.1 %)

Depreciation

   (661 )   (607 )     (54 ) (8.9 %)     (2,538 )   (2,388 )     (150 ) (6.3 %)

Amortization

   (181 )   (193 )     12   6.2 %     (723 )   (737 )     14   1.9 %

Finance costs

                                                  

Interest expense

   (215 )   (174 )     (41 ) (23.6 %)     (842 )   (685 )     (157 ) (22.9 %)

Interest on employee benefit obligations

   (248 )   (248 )     -   0.0 %     (984 )   (992 )     8   0.8 %

Interest on fund unit liability

   -     (93 )     93   100.0 %     -     (370 )     370   100.0 %

Expected return on pension plan assets

   260     224       36   16.1 %     1,032     898       134   14.9 %

Other (expense) income

   (5 )   (68 )     63   92.6 %     129     173       (44 ) (25.4 %)

Earnings before income taxes

   820     503       317   63.0 %     3,294     2,822       472   16.7 %

Income taxes

   (247 )   (159 )     (88 ) (55.3 %)     (720 )   (632 )     (88 ) (13.9 %)

Net earnings

   573     344       229   66.6 %     2,574     2,190       384   17.5 %

Net earnings attributable to:

                                                  

Common shareholders

   486     318       168   52.8 %     2,221     2,083       138   6.6 %

Preferred shareholders

   26     29       (3 ) (10.3 %)     119     112       7   6.3 %

Non-controlling interest

   61     (3 )     64   n.m.       234     (5 )     239   n.m.  

Net earnings

   573     344       229   66.6 %     2,574     2,190       384   17.5 %

Net earnings per common share – basic

 $ 0.62   $ 0.42     $ 0.20   47.6 %   $ 2.88   $ 2.74     $ 0.14   5.1 %

Net earnings per common share – diluted

 $ 0.62   $ 0.42     $ 0.20   47.6 %   $ 2.88   $ 2.74     $ 0.14   5.1 %

Dividends per common share

 $ 0.5175   $ 0.4575     $ 0.06   13.1 %   $ 2.0450   $ 1.7850     $ 0.26   14.6 %

Average number of common shares outstanding – basic (millions)

   778.1     754.1                   771.4     759.0              

Average number of common shares outstanding – diluted (millions)

   778.7     755.0                   771.8     759.5              

Number of common shares outstanding (millions)

   775.4     752.3                   775.4     752.3              
                                                   

Adjusted Net Earnings and EPS

                                                  

Net earnings attributable to common shareholders

   486     318       168   52.8 %     2,221     2,083       138   6.6 %

Severance, acquisition and other costs

   (2 )   67       (69 ) n.m.       282     189       93   49.2 %

Net gains on investments

   -     -       -   n.m.       (89 )   (133 )     44   33.1 %

Fair value adjustment on fund unit liability

   -     58       (58 ) (100.0 %)     -     (49 )     49   100.0 %

Adjustment to reflect interest on fund unit liability as non-controlling interest

   -     3       (3 ) (100.0 %)     -     29       (29 ) (100.0 %)

Adjusted net earnings attributable to common shareholders

   484     446       38   8.5 %     2,414     2,119       295   13.9 %

Impact on net earnings per share

 $ -   $ 0.17     $ (0.17 ) (100.0 %)   $ 0.25   $ 0.05     $ 0.20   n.m.  

Adjusted EPS (4)

 $ 0.62   $ 0.59     $ 0.03   5.1 %   $ 3.13   $ 2.79     $ 0.34   12.2 %
                                                   

 

(A)

Excludes pension current service costs

n.m. : not meaningful

 

BCE Inc. Supplementary Financial Information – Fourth Quarter 2011 Page 2

 

BCE Inc.
Consolidated Operational Data – Historical Trend

($ millions of Canadian dollars, except per share amounts) (unaudited)

   Total
2011		       Q4 11     Q3 11     Q2 11     Q1 11       Total
2010		       Q4 10     Q3 10     Q2 10     Q1 10  

Operating revenues

   19,497       5,166     4,910     4,955     4,466       18,069       4,679     4,517     4,440     4,433  

Operating costs (A)

   (11,627 )     (3,238 )   (2,907 )   (2,908 )   (2,574 )     (10,684 )     (2,882 )   (2,627 )   (2,548 )   (2,627 )

Pension current service costs

   (241 )     (59 )   (62 )   (61 )   (59 )     (200 )     (49 )   (49 )   (49 )   (53 )

EBITDA

   7,629       1,869     1,941     1,986     1,833       7,185       1,748     1,841     1,843     1,753  

EBITDA margin

  

39.1

 %    

36.2

 %  

39.5

 %  

40.1

 %  

41.0

 %    

39.8

 %    

37.4

 %  

40.8

 %  

41.5

 %  

39.5

 %

Severance, acquisition and other costs

   (409 )     1     (130 )   (219 )   (61 )     (262 )     (86 )   (129 )   (15 )   (32 )

Depreciation

   (2,538 )     (661 )   (628 )   (638 )   (611 )     (2,388 )     (607 )   (600 )   (595 )   (586 )

Amortization

   (723 )     (181 )   (180 )   (183 )   (179 )     (737 )     (193 )   (181 )   (183 )   (180 )

Finance costs

                                                                  

Interest expense

   (842 )     (215 )   (210 )   (226 )   (191 )     (685 )     (174 )   (169 )   (170 )   (172 )

Interest on employee benefit obligations

   (984 )     (248 )   (247 )   (247 )   (242 )     (992 )     (248 )   (248 )   (248 )   (248 )

Interest on fund unit liability

   -       -     -     -     -       (370 )     (93 )   (92 )   (93 )   (92 )

Expected return on pension plan assets

   1,032       260     259     259     254       898       224     225     224     225  

Other income (expense)

   129       (5 )   11     145     (22 )     173       (68 )   (67 )   39     269  

Earnings before income taxes

   3,294       820     816     877     781       2,822       503     580     802     937  

Income taxes

   (720 )     (247 )   (80 )   (194 )   (199 )     (632 )     (159 )   (98 )   (172 )   (203 )

Net earnings

   2,574       573     736     683     582       2,190       344     482     630     734  

Net earnings attributable to:

                                                                  

Common shareholders

   2,221       486     642     590     503       2,083       318     454     605     706  

Preferred shareholders

   119       26     33     31     29       112       29     27     27     29  

Non-controlling interest

   234       61     61     62     50       (5 )     (3 )   1     (2 )   (1 )

Net earnings

   2,574       573     736     683     582       2,190       344     482     630     734  

Net earnings per common share – basic

 $ 2.88     $ 0.62   $ 0.83   $ 0.76   $ 0.67     $ 2.74     $ 0.42   $ 0.60   $ 0.80   $ 0.92  

Net earnings per common share – diluted

 $ 2.88     $ 0.62   $ 0.83   $ 0.76   $ 0.67     $ 2.74     $ 0.42   $ 0.60   $ 0.80   $ 0.92  

Dividends per common share

 $ 2.0450     $ 0.5175   $ 0.5175   $ 0.5175   $ 0.4925     $ 1.7850     $ 0.4575   $ 0.4575   $ 0.4350   $ 0.4350  

Average number of common shares outstanding – basic (millions)

   771.4       778.1     777.6     776.6     752.9       759.0       754.1     756.7     759.7     765.7  

Average number of common shares outstanding – diluted (millions)

   771.8       778.7     778.2     777.1     753.5       759.5       755.0     757.3     760.1     766.0  

Number of common shares outstanding (millions)

   775.4       775.4     778.0     777.5     754.1       752.3       752.3     755.6     759.1     763.0  
                                                                   

Adjusted Net Earnings and EPS

                                                                  

Net earnings attributable to common shareholders

   2,221       486     642     590     503       2,083       318     454     605     706  

Severance, acquisition and other costs

   282       (2 )   82     162     40       189       67     91     6     25  

Net gains on investments

   (89 )     -     -     (89 )   -       (133 )     -     -     (8 )   (125 )

Fair value adjustment on fund unit liability

   -       -     -     -     -       (49 )     58     56     (16 )   (147 )

Adjustment to reflect interest on fund unit liability as non-controlling interest

   -       -     -     -     -       29       3     10     8     8  

Adjusted net earnings attributable to common shareholders

   2,414       484     724     663     543       2,119       446     611     595     467  

Impact on net earnings per share

 $ 0.25     $ -   $ 0.10   $ 0.10   $ 0.05     $ 0.05     $ 0.17   $ 0.21   $ (0.02 ) $ (0.31 )

Adjusted EPS

 $ 3.13     $ 0.62   $ 0.93   $ 0.86   $ 0.72     $ 2.79     $ 0.59   $ 0.81   $ 0.78   $ 0.61  

 

(A)

Excludes pension current service costs

 

BCE Inc. Supplementary Financial Information – Fourth Quarter 2011 Page 3

 

BCE Inc.
Segmented Data (2)

($ millions of Canadian dollars, except where otherwise indicated) (unaudited)

 Q4
2011		   Q4
2010		     $ change   % change     Total
2011		   Total
2010		     $ change   % change  
                                       

Revenues

                                      

Bell Wireline

 2,709   2,822     (113 ) (4.0 %)   10,621   10,948     (327 ) (3.0 %)

Bell Wireless

 1,365   1,289     76   5.9 %   5,231   4,906     325   6.6 %

Bell Media

 578   -     578   n.m.     1,542   -     1,542   n.m.  

Inter-segment eliminations

 (76 ) (46 )   (30 ) (65.2 %)   (261 ) (185 )   (76 ) (41.1 %)

Total Bell

 4,576   4,065     511   12.6 %   17,133   15,669     1,464   9.3 %

Bell Aliant

 701   716     (15 ) (2.1 %)   2,775   2,808     (33 ) (1.2 %)

Inter-segment eliminations

 (111 ) (102 )   (9 ) (8.8 %)   (411 ) (408 )   (3 ) (0.7 %)

Total BCE Inc.

 5,166   4,679     487   10.4 %   19,497   18,069     1,428   7.9 %
                                       

Operating costs

                                      

Bell Wireline

 (1,712 ) (1,803 )   91   5.0 %   (6,466 ) (6,854 )   388   5.7 %

Bell Wireless

 (944 ) (905 )   (39 ) (4.3 %)   (3,408 ) (3,188 )   (220 ) (6.9 %)

Bell Media

 (448 ) -     (448 ) n.m.     (1,208 ) -     (1,208 ) n.m.  

Inter-segment eliminations

 76   46     30   65.2 %   261   185     76   41.1 %

Total Bell

 (3,028 ) (2,662 )   (366 ) (13.7 %)   (10,821 ) (9,857 )   (964 ) (9.8 %)

Bell Aliant

 (380 ) (371 )   (9 ) (2.4 %)   (1,458 ) (1,435 )   (23 ) (1.6 %)

Inter-segment eliminations

 111   102     9   8.8 %   411   408     3   0.7 %

Total BCE Inc.

 (3,297 ) (2,931 )   (366 ) (12.5 %)   (11,868 ) (10,884 )   (984 ) (9.0 %)
                                       

EBITDA

                                      

Bell Wireline

 997   1,019     (22 ) (2.2 %)   4,155   4,094     61   1.5 %

Margin

36.8

 %

36.1

 %      

0.7

 pts  

39.1

 %

37.4

 %      

1.7

 pts

Bell Wireless

 421   384     37   9.6 %   1,823   1,718     105   6.1 %

Margin

30.8

 %

29.8

 %      

1.0

 pts  

34.8

 %

35.0

 %      

(0.2

 ) pts

Bell Media

 130   -     130   n.m.     334   -     334   n.m.  

Margin

 22.5 % n.m.         n.m.    

21.7

 % n.m.         n.m.  

Total Bell

 1,548   1,403     145   10.3 %   6,312   5,812     500   8.6 %

Margin

33.8

 %

34.5

 %      

(0.7

 ) pts  

36.8

 %

37.1

 %      

(0.3

 ) pts

Bell Aliant

 321   345     (24 ) (7.0 %)   1,317   1,373     (56 ) (4.1 %)

Margin

45.8

 %

48.2

 %      

(2.4

 ) pts  

47.5

 %

48.9

 %      

(1.4

 ) pts

Total BCE Inc.

 1,869   1,748     121   6.9 %   7,629   7,185     444   6.2 %

Margin

36.2

 %

37.4

 %      

(1.2

 ) pts  

39.1

 %

39.8

 %      

(0.7

 ) pts

Capital expenditures

                                      

Bell Wireline

 647   646     (1 ) (0.2 %)   1,973   2,019     46   2.3 %

Capital Intensity (6)

23.9

 %

22.9

 %      

(1.0

 ) pts  

18.6

 %

18.4

 %      

(0.2

 ) pts

Bell Wireless

 188   225     37   16.4 %   619   485     (134 ) (27.6 %)

Capital Intensity

13.8

 %

17.5

 %      

3.7

 pts  

11.8

 %

9.9

 %      

(1.9

 ) pts

Bell Media

 36   -     (36 ) n.m.     91   -     (91 ) n.m.  

Capital Intensity

 6.2 % n.m.         n.m.    

5.9

 % n.m.         n.m.  

Total Bell

 871   871     -   0.0 %   2,683   2,504     (179 ) (7.1 %)

Capital Intensity

19.0

 %

21.4

 %      

2.4

 pts  

15.7

 %

16.0

 %      

0.3

 pts

Bell Aliant

 137   163     26   16.0 %   573   494     (79 ) (16.0 %)

Capital Intensity

 19.5 %

22.8

 %      

3.3

 pts   20.6 % 17.6 %      

(3.0

 ) pts

Total BCE Inc.

 1,008   1,034     26   2.5 %   3,256   2,998     (258 ) (8.6 %)

Capital Intensity

19.5

 %

22.1

 %      

2.6

 pts  

16.7

 %

16.6

 %      

(0.1

 ) pts
                                       

 

BCE Inc. Supplementary Financial Information – Fourth Quarter 2011 Page 4

 

BCE Inc.
Segmented Data – Historical Trend

($ millions of Canadian dollars, except where otherwise indicated) (unaudited)

 Total
2011		     Q4 11   Q3 11   Q2 11   Q1 11     Total
2010		     Q4 10   Q3 10   Q2 10   Q1 10  
                                               

Revenues

                                              

Bell Wireline

 10,621     2,709   2,610   2,630   2,672     10,948     2,822   2,694   2,685   2,747  

Bell Wireless

 5,231     1,365   1,339   1,276   1,251     4,906     1,289   1,268   1,203   1,146  

Bell Media

 1,542     578   435   529   -     -     -   -   -   -  

Inter-segment eliminations

 (261 )   (76 ) (71 ) (73 ) (41 )   (185 )   (46 ) (46 ) (45 ) (48 )

Total Bell

 17,133     4,576   4,313   4,362   3,882     15,669     4,065   3,916   3,843   3,845  

Bell Aliant

 2,775     701   700   692   682     2,808     716   703   700   689  

Inter-segment eliminations

 (411 )   (111 ) (103 ) (99 ) (98 )   (408 )   (102 ) (102 ) (103 ) (101 )

Total BCE Inc.

 19,497     5,166   4,910   4,955   4,466     18,069     4,679   4,517   4,440   4,433  
                                               

Operating costs

                                              

Bell Wireline

 (6,466 )   (1,712 ) (1,567 ) (1,559 ) (1,628 )   (6,854 )   (1,803 ) (1,668 ) (1,640 ) (1,743 )

Bell Wireless

 (3,408 )   (944 ) (858 ) (816 ) (790 )   (3,188 )   (905 ) (801 ) (747 ) (735 )

Bell Media

 (1,208 )   (448 ) (354 ) (406 ) -     -     -   -   -   -  

Inter-segment eliminations

 261     76   71   73   41     185     46   46   45   48  

Total Bell

 (10,821 )   (3,028 ) (2,708 ) (2,708 ) (2,377 )   (9,857 )   (2,662 ) (2,423 ) (2,342 ) (2,430 )

Bell Aliant

 (1,458 )   (380 ) (364 ) (360 ) (354 )   (1,435 )   (371 ) (355 ) (358 ) (351 )

Inter-segment eliminations

 411     111   103   99   98     408     102   102   103   101  

Total BCE Inc.

 (11,868 )   (3,297 ) (2,969 ) (2,969 ) (2,633 )   (10,884 )   (2,931 ) (2,676 ) (2,597 ) (2,680 )
                                               

EBITDA

                                              

Bell Wireline

 4,155     997   1,043   1,071   1,044     4,094     1,019   1,026   1,045   1,004  

Margin

39.1

 %  

36.8

 %

40.0

 %

40.7

 %

39.1

 %  

37.4

 %  

36.1

 %

38.1

 %

38.9

 %

36.5

 %

Bell Wireless

 1,823     421   481   460   461     1,718     384   467   456   411  

Margin

 34.8 %  

30.8

 %

35.9

 %

36.1

 %

36.9

 %  

35.0

 %  

29.8

 %

36.8

 %

37.9

 %

35.9

 %

Bell Media

 334     130   81   123   -     -     -   -   -   -  

Margin

21.7

 %  

22.5

 %

18.6

 %

23.3

 % n.m.     n.m.     n.m.  

n.m.

  

n.m.

  

n.m.

  

Total Bell

 6,312     1,548   1,605   1,654   1,505     5,812     1,403   1,493   1,501   1,415  

Margin

36.8

 %  

33.8

 %

37.2

 %

37.9

 %

38.8

 %  

37.1

 %  

34.5

 %

38.1

 %

39.1

 %

36.8

 %

Bell Aliant

 1,317     321   336   332   328     1,373     345   348   342   338  

Margin

47.5

 %  

45.8

 %

48.0

 %

48.0

 %

48.1

 %  

48.9

 %  

48.2

 %

49.5

 %

48.9

 %

49.1

 %

Total BCE Inc.

 7,629     1,869   1,941   1,986   1,833     7,185     1,748   1,841   1,843   1,753  

Margin

39.1

 %  

36.2

 %

39.5

 %

40.1

 %

41.0

 %  

39.8

 %  

37.4

 %

40.8

 %

41.5

 %

39.5

 %

Capital expenditures

                                              

Bell Wireline

 1,973     647   474   450   402     2,019     646   521   464   388  

Capital Intensity

18.6

 %  

23.9

 %

18.2

 %

17.1

 %

15.0

 %  

18.4

 %  

22.9

 %

19.3

 %

17.3

 %

14.1

 %

Bell Wireless

 619     188   150   168   113     485     225   123   84   53  

Capital Intensity

11.8

 %  

13.8

 %

11.2

 %

13.2

 %

9.0

 %  

9.9

 %  

17.5

 %

9.7

 %

7.0

 %

4.6

 %

Bell Media

 91     36   28   27   -     -     -   -   -   -  

Capital Intensity

5.9

 %  

6.2

 %

6.4

 %

5.1

 % n.m.     n.m.     n.m.  

n.m.

  

n.m.

  

n.m.

  

Total Bell

 2,683     871   652   645   515     2,504     871   644   548   441  

Capital Intensity

15.7

 %  

19.0

 %

15.1

 %

14.8

 %

13.3

 %  

16.0

 %  

21.4

 %

16.4

 %

14.3

 %

11.5

 %

Bell Aliant

 573     137   162   155   119     494     163   113   124   94  

Capital Intensity

20.6

 %  

19.5

 %

23.1

 %

22.4

 %

17.4

 %  

17.6

 %  

22.8

 %

16.1

 %

17.7

 %

13.6

 %

Total BCE Inc.

 3,256     1,008   814   800   634     2,998     1,034   757   672   535  

Capital Intensity

16.7

 %  

19.5

 %

16.6

 %

16.1

 %

14.2

 %  

16.6

 %  

22.1

 %

16.8

 %

15.1

 %

12.1

 %

 

BCE Inc. Supplementary Financial Information – Fourth Quarter 2011 Page 5

 

Bell Wireline (2)

($ millions of Canadian dollars, except where otherwise indicated) (unaudited)

 Q4
2011		   Q4
2010		    

% change

     Total
2011		   Total
2010		    

% change

  

Bell Wireline

                              

Local & access

 687   733     (6.3 %)   2,852   3,012     (5.3 %)

Long distance

 219   232     (5.6 %)   903   923     (2.2 %)

Data

 993   1,035     (4.1 %)   3,811   3,985     (4.4 %)

Video

 457   450     1.6 %   1,831   1,749     4.7 %

Equipment & other

 272   292     (6.8 %)   911   962     (5.3 %)

Total external revenues

 2,628   2,742     (4.2 %)   10,308   10,631     (3.0 %)

Inter-segment revenues

 81   80     1.3 %   313   317     (1.3 %)

Total Bell Wireline operating revenue

 2,709   2,822     (4.0 %)   10,621   10,948     (3.0 %)

Operating costs

 (1,712 ) (1,803 )   5.0 %   (6,466 ) (6,854 )   5.7 %

EBITDA

 997   1,019     (2.2 %)   4,155   4,094     1.5 %

EBITDA Margin

36.8

 %

36.1

 %  

0.7

 pts  

39.1

 %

37.4

 %  

1.7

 pts
                               

Capital expenditures

 647   646     (0.2 %)   1,973   2,019     2.3 %

Capital Intensity

 23.9 %

22.9

 %  

(1.0

 ) pts  

18.6

 %

18.4

 %  

(0.2

 ) pts
                               

Local

                              

Network access services (NAS)

                              

Residential

 3,276,121   3,608,887     (9.2 %)   3,276,121   3,608,887     (9.2 %)

Business

 2,825,535   2,866,818     (1.4 %)   2,825,535   2,866,818     (1.4 %)

Total

 6,101,656   6,475,705     (5.8 %)   6,101,656   6,475,705     (5.8 %)

Network access service net (losses)/activations

                              

Residential

 (89,733 ) (36,550 )   n.m     (332,766 ) (277,643 )   (19.9 %)

Business

 (13,947 ) (27,622 )   49.5 %   (41,283 ) (107,674 )   61.7 %

Total

 (103,680 ) (64,172 )   (61.6 %)   (374,049 ) (385,317 )   2.9 %

Internet

                              

High Speed Internet net activations

 1,091   12,099     (91.0 %)   15,426   40,335     (61.8 %)

High Speed Internet subscribers EOP

 2,112,752   2,097,326     0.7 %   2,112,752   2,097,326     0.7 %

Video

                              

Net subscriber activations

 27,726   23,019     20.4 %   67,498   71,221     (5.2 %)

Total subscribers EOP

 2,087,596   2,020,098     3.3 %   2,087,596   2,020,098     3.3 %

ARPU (7) ($/month)

 73.68   74.79     (1.5 %)   74.56   73.49     1.5 %

 

BCE Inc. Supplementary Financial Information – Fourth Quarter 2011 Page 6

 

Bell Wireline – Historical Trend

($ millions of Canadian dollars, except where otherwise indicated) (unaudited)

 Total
2011		     Q4 11   Q3 11   Q2 11   Q1 11     Total
2010		     Q4 10   Q3 10   Q2 10   Q1 10  

Bell Wireline

                                              

Local & access

 2,852     687   710   726   729     3,012     733   759   758   762  

Long distance

 903     219   223   227   234     923     232   224   231   236  

Data

 3,811     993   930   933   955     3,985     1,035   972   963   1,015  

Video

 1,831     457   454   460   460     1,749     450   437   434   428  

Equipment & other

 911     272   212   208   219     962     292   223   220   227  

Total external revenues

 10,308     2,628   2,529   2,554   2,597     10,631     2,742   2,615   2,606   2,668  

Inter-segment revenues

 313     81   81   76   75     317     80   79   79   79  

Total Bell Wireline operating revenue

 10,621     2,709   2,610   2,630   2,672     10,948     2,822   2,694   2,685   2,747  

Operating costs

 (6,466 )   (1,712 ) (1,567 ) (1,559 ) (1,628 )   (6,854 )   (1,803 ) (1,668 ) (1,640 ) (1,743 )

EBITDA

 4,155     997   1,043   1,071   1,044     4,094     1,019   1,026   1,045   1,004  

EBITDA Margin

39.1

 %  

36.8

 %

40.0

 %

40.7

 %

39.1

 %  

37.4

 %  

36.1

 %

38.1

 %

38.9

 %

36.5

 %

 

                                              

Capital expenditures

 1,973     647   474   450   402     2,019     646   521   464   388  

Capital Intensity

18.6

 %  

23.9

 %

18.2

 %

17.1

 %

15.0

 %  

18.4

 %  

22.9

 %

19.3

 %

17.3

 %

14.1

 %

 

                                              

Local

                                              

Network access services (NAS)

                                              

Residential

 3,276,121     3,276,121   3,365,854   3,461,121   3,544,600     3,608,887     3,608,887   3,645,437   3,713,920   3,810,912  

Business

 2,825,535     2,825,535   2,839,482   2,854,844   2,871,862     2,866,818     2,866,818   2,894,440   2,918,126   2,950,281  

Total

 6,101,656     6,101,656   6,205,336   6,315,965   6,416,462     6,475,705     6,475,705   6,539,877   6,632,046   6,761,193  

Network access service net (losses)/activations

                                              

Residential

 (332,766 )   (89,733 ) (95,267 ) (83,479 ) (64,287 )   (277,643 )   (36,550 ) (68,483 ) (96,992 ) (75,618 )

Business

 (41,283 )   (13,947 ) (15,362 ) (17,018 ) 5,044     (107,674 )   (27,622 ) (23,686 ) (32,155 ) (24,211 )

Total

 (374,049 )   (103,680 ) (110,629 ) (100,497 ) (59,243 )   (385,317 )   (64,172 ) (92,169 ) (129,147 ) (99,829 )

Internet

                                              

High Speed Internet net activations

 15,426     1,091   (101 ) 1,275   13,161     40,335     12,099   21,668   (3,899 ) 10,467  

High Speed Internet subscribers EOP

 2,112,752     2,112,752   2,111,661   2,111,762   2,110,487     2,097,326     2,097,326   2,085,227   2,063,559   2,067,458  

Video

                                              

Net subscriber activations

 67,498     27,726   26,037   6,072   7,663     71,221     23,019   18,538   9,775   19,889  

Total subscribers EOP

 2,087,596     2,087,596   2,059,870   2,033,833   2,027,761     2,020,098     2,020,098   1,997,079   1,978,541   1,968,766  

ARPU ($/month)

 74.56     73.68   74.45   76.22   75.76     73.49     74.79   73.34   73.43   72.60  

 

BCE Inc. Supplementary Financial Information – Fourth Quarter 2011 Page 7

 

Bell Wireless (2)

($ millions of Canadian dollars, except where otherwise indicated) (unaudited)

 Q4
2011		   Q4
2010		    

% change

     Total
2011		   Total
2010		    

% change

  

Bell Wireless

                              

 

                              

Revenue

                              

Service

 1,222   1,148     6.4 %   4,769   4,469     6.7 %

Product

 129   134     (3.7 %)   422   407     3.7 %

Total external Bell Wireless revenues

 1,351   1,282     5.4 %   5,191   4,876     6.5 %

Inter-segment

 14   7     100.0 %   40   30     33.3 %

Total Bell Wireless operating revenues

 1,365   1,289     5.9 %   5,231   4,906     6.6 %

Operating costs

 (944 ) (905 )   (4.3 %)   (3,408 ) (3,188 )   (6.9 %)

EBITDA

 421   384     9.6 %   1,823   1,718     6.1 %

EBITDA margin (Total revenues)

 30.8 %

29.8

 %  

1.0

 pts  

34.8

 %

35.0

 %  

(0.2

 ) pts

EBITDA margin (Service revenues)

 34.5 %

33.4

 %  

1.1

 pts  

38.2

 %

38.4

 %  

(0.2

 ) pts

 

                              

Capital expenditures

 188   225     16.4 %   619   485     (27.6 %)

Capital intensity

13.8

 %

17.5

 %  

3.7

 pts  

11.8

 %

9.9

 %  

(1.9

 ) pts

Wireless gross activations

 511,917   552,714     (7.4 %)   1,936,396   1,999,482     (3.2 %)

Postpaid

 389,317   399,041     (2.4 %)   1,402,965   1,332,086     5.3 %

Wireless net activations

 57,886   116,782     (50.4 %)   185,434   408,746     (54.6 %)

Postpaid

 131,986   156,708     (15.8 %)   433,797   500,139     (13.3 %)

Wireless subscribers EOP

 7,427,482   7,242,048     2.6 %   7,427,482   7,242,048     2.6 %

Postpaid

 5,975,166   5,541,369     7.8 %   5,975,166   5,541,369     7.8 %

Average revenue per unit (ARPU)($/month)

 54.50   52.34     4.1 %   53.55   52.03     2.9 %

Churn (%) (average per month)

 2.1 % 2.0 %   (0.1 ) pts   2.0 % 1.9 %   (0.1 ) pts

Prepaid

 4.2 % 3.6 %   (0.6 ) pts   3.9 % 3.5 %   (0.4 ) pts

Postpaid

 1.5 % 1.5 %   0.0  pts   1.5 % 1.4 %   (0.1 ) pts

Usage per subscriber (min/month)

 299   277     7.9 %   283   274     3.3 %

Cost of acquisition (COA) (9) ($/sub) (A)

 450   411     (9.5 %)   403   358     (12.6 %)

 

                              

 

(A)

In Q1 2011, we changed our methodology for calculating Wireless COA to better align with Canadian industry practice. All prior periods have been restated for comparability.

 

BCE Inc. Supplementary Financial Information – Fourth Quarter 2011 Page 8

 

Bell Wireless – Historical Trend

($ millions of Canadian dollars, except where otherwise indicated) (unaudited)

 Total
2011		     Q4 11   Q3 11   Q2 11   Q1 11     Total
2010		     Q4 10   Q3 10   Q2 10   Q1 10  

Bell Wireless

                                              
                                               

Revenue

                                              

Service

 4,769     1,222   1,228   1,174   1,145     4,469     1,148   1,157   1,111   1,053  

Product

 422     129   102   92   99     407     134   103   84   86  

Total external Bell Wireless revenues

 5,191     1,351   1,330   1,266   1,244     4,876     1,282   1,260   1,195   1,139  

Inter-segment

 40     14   9   10   7     30     7   8   8   7  

Total Bell Wireless operating revenues

 5,231     1,365   1,339   1,276   1,251     4,906     1,289   1,268   1,203   1,146  

Operating costs

 (3,408 )   (944 ) (858 ) (816 ) (790 )   (3,188 )   (905 ) (801 ) (747 ) (735 )

EBITDA

 1,823     421   481   460   461     1,718     384   467   456   411  

EBITDA margin (Total revenues)

34.8

 %  

30.8

 %

35.9

 %

36.1

 %

36.9

 %  

35.0

 %  

29.8

 %

36.8

 %

37.9

 %

35.9

 %

EBITDA margin (Service revenues)

38.2

 %  

34.5

 %

39.2

 %

39.2

 %

40.3

 %  

38.4

 %  

33.4

 %

40.4

 %

41.0

 %

39.0

 %
                                               

Capital expenditures

 619     188   150   168   113     485     225   123   84   53  

Capital intensity

11.8

 %  

13.8

 %

11.2

 %

13.2

 %

9.0

 %  

9.9

 %  

17.5

 %

9.7

 %

7.0

 %

4.6

 %

Wireless gross activations

 1,936,396     511,917   525,780   474,900   423,799     1,999,482     552,714   537,295   480,639   428,834  

Postpaid

 1,402,965     389,317   372,346   341,645   299,657     1,332,086     399,041   368,154   300,579   264,312  

Wireless net activations

 185,434     57,886   85,749   36,507   5,292     408,746     116,782   137,880   98,459   55,625  

Postpaid

 433,797     131,986   126,854   94,309   80,648     500,139     156,708   159,465   102,754   81,212  

Wireless subscribers EOP

 7,427,482     7,427,482   7,369,596   7,283,847   7,247,340     7,242,048     7,242,048   7,125,266   6,987,386   6,888,927  

Postpaid

 5,975,166     5,975,166   5,843,180   5,716,326   5,622,017     5,541,369     5,541,369   5,384,661   5,225,196   5,122,442  

Average revenue per unit (ARPU)($/month)

 53.55     54.50   55.01   52.99   51.68     52.03     52.34   53.54   52.12   50.07  

Churn (%)(average per month)

 2.0 %   2.1 % 2.0 % 2.0 % 1.9 %   1.9 %   2.0 % 1.9 % 1.8 % 1.8 %

Prepaid

 3.9 %   4.2 % 3.9 % 3.7 % 3.7 %   3.5 %   3.6 % 3.4 % 3.4 % 3.4 %

Postpaid

 1.5 %   1.5 % 1.5 % 1.5 % 1.4 %   1.4 %   1.5 % 1.4 % 1.3 % 1.2 %

Usage per subscriber (min/month)

 283     299   291   282   256     274     277   280   284   259  

Cost of acquisition (COA)($/sub) (A)

 403     450   392   400   366     358     411   355   335   321  

 

(A)

In Q1 2011, we changed our methodology for calculating Wireless COA to better align with Canadian industry practice. All prior periods have been restated for comparability.

 

BCE Inc. Supplementary Financial Information – Fourth Quarter 2011 Page 9

 

BCE Inc.
Net debt and other information

BCE Inc. – Net debt and preferreds

            
             

At December 31, 2011

BCE Inc.

($ millions of Canadian dollars, except where otherwise indicated) (unaudited)

            

 

    Bell      

 

Bell   Aliant  

BCE Inc.

  

Debt due within one year

 1,724   382   2,106  

Long-term debt

 10,070   2,651   12,721  

Preferred shares – BCE (A)

 1,558   -   1,558  

Cash and cash equivalents

 (140 ) (35 ) (175 )

Net debt

 13,212   2,998   16,210  

 

Bell – Net debt and preferreds

                    

($ millions of Canadian dollars, except where otherwise indicated) (unaudited)

                    

 

December 31   September 30  

June 30

   March 31  

Dec. 31

  

 

2011   2011   2011   2011   2010  

Debt due within one year

 1,724   1,833   1,843   2,279   1,766  

Long-term debt

 10,070   10,072   10,042   9,189   8,221  

Preferred shares – BCE (A)

 1,558   1,558   1,385   1,385   1,385  

Cash and cash equivalents

 (140 ) (1,085 ) (263 ) (2,147 ) (749 )

Net Debt

 13,212   12,378   13,007   10,706   10,623  

Net Debt / Adjusted EBITDA (B)

 2.0   1.9   2.1   1.7   1.7  

Adjusted EBITDA (B) / Net interest, excluding interest on employee benefit obligations and interest expense on fund unit liability and including 50% of preferred dividends

 9.1   9.5   9.9   10.5   10.7  

 

Bell Media – Proportionate Information

                

($ millions of Canadian dollars, except where otherwise indicated) (unaudited)

                

 

Total 2011   Q4 2011   Q3 2011   Q2 2011  

Proportionate Net Debt

 230   230   220   275  

Proportionate EBITDA

 272   113   56   103  

 

Cash Flow Information

                                  

($ millions of Canadian dollars, except where otherwise indicated) (unaudited)

 Q4
2011		   Q4
2010		  

$ change

  

  % change

     Total
2011		   Total
2010		  

  $ change

  

  % change

  
                                   

Free Cash Flow (FCF)

                                  

Cash from operating activities, excluding acquisition costs paid

 676   295   381   n.m.     4,129   3,758   371   9.9 %

Capital expenditures

 (871 ) (871 ) -   0.0 %   (2,683 ) (2,504 ) (179 ) (7.1 %)

Dividends paid on preferred shares

 (31 ) (28 ) (3 ) (10.7 %)   (118 ) (108 ) (10 ) (9.3 %)

Dividends/distributions paid by subsidiaries to non-controlling interest

 (8 ) -   (8 ) n.m.     (31 ) -   (31 ) n.m.  

Bell Aliant distributions to BCE

 48   73   (25 ) (34.2 %)   214   291   (77 ) (26.5 %)

FCF

 (186 ) (531 ) 345   65.0 %   1,511   1,437   74   5.1 %
                                   
                                   

 

Cash Flow Information – Historical Trend

                                              

($ millions of Canadian dollars, except where otherwise indicated) (unaudited)

Total
2011

     Q4
2011		   Q3
2011		   Q2
2011		   Q1
2011		    

Total
2010

     Q4
2010		   Q3
2010		   Q2
2010		   Q1
2010		  

  

                                               

Free Cash Flow (FCF)

                                              

Cash from operating activities, excluding acquisition costs paid

 4,129     676   1,651   1,065   737     3,758     295   1,402   1,105   956  

Capital expenditures

 (2,683 )   (871 ) (652 ) (645 ) (515 )   (2,504 )   (871 ) (644 ) (548 ) (441 )

Dividends paid on preferred shares

 (118 )   (31 ) (31 ) (28 ) (28 )   (108 )   (28 ) (25 ) (27 ) (28 )

Dividends/distributions paid by subsidiaries to non-controlling interest

 (31 )   (8 ) (11 ) (12 ) -     -     -   -   -   -  

Bell Aliant distributions to BCE

 214     48   48   47   71     291     73   73   72   73  

FCF

 1,511     (186 ) 1,005   427   265     1,437     (531 ) 806   602   560  

 

                                              

 

(A)

Net debt includes 50% of preferred shares.
(B)

Adjusted EBITDA is defined as EBITDA including dividends / distributions from Bell Aliant to BCE and is based on trailling 12 months data.

 

BCE Inc. Supplementary Financial Information – Fourth Quarter 2011 Page 10

 

BCE Inc.
Consolidated Statements of Financial Position Data

($ millions of Canadian dollars, except where otherwise indicated) (unaudited)

 December 31
2011		     September 30
2011		     June 30
2011		     March 31
2011		     December 31
2010		  

ASSETS

                            

Current assets

                            

Cash

 130     132     27     2,069     129  

Cash equivalents

 45     972     249     103     642  

Trade and other receivables

 3,119     2,835     3,211     2,580     2,885  

Current tax receivable

 43     80     87     97     139  

Inventory

 427     487     414     424     431  

Prepaid expenses

 262     347     404     450     224  

Other current assets

 152     158     110     106     205  

Total current assets

 4,178     5,011     4,502     5,829     4,655  

Non-current assets

                            

Property, plant and equipment

 18,785     18,517     18,330     17,582     17,775  

Intangible assets

 8,013     8,027     8,116     6,288     6,201  

Deferred tax assets

 329     424     451     437     501  

Investments in associates and joint ventures

 307     308     308     313     303  

Other non-current assets

 629     611     550     669     652  

Goodwill

 7,185     7,202     7,202     5,806     5,806  

Total non-current assets

 35,248     35,089     34,957     31,095     31,238  

Total assets

 39,426     40,100     39,459     36,924     35,893  

LIABILITIES

                            

Current liabilities

                            

Trade payables and other liabilities

 4,056     3,670     3,641     3,283     3,848  

Interest payable

 134     160     134     135     143  

Dividends payable

 415     417     414     383     356  

Current tax liabilities

 47     142     139     78     37  

Debt due within one year

 2,106     2,244     2,239     3,049     2,570  

Total current liabilities

 6,758     6,633     6,567     6,928     6,954  

Non-current liabilities

                            

Long-term debt

 12,721     12,725     12,699     11,556     10,581  

Fund unit liability

 -     -     -     -     3,060  

Deferred tax liabilities

 881     618     784     579     526  

Employee benefit obligation

 2,966     4,348     3,142     2,786     3,302  

Other non-current liabilities

 1,341     1,383     1,573     1,280     1,302  

Total non-current liabilities

 17,909     19,074     18,198     16,201     18,771  

Total liabilities

 24,667     25,707     24,765     23,129     25,725  
                             

EQUITY

                            

Equity attributable to owners of the parent

                            

Preferred shares

 3,115     3,115     2,770     2,770     2,770  

Common shares

 13,566     13,585     13,568     12,745     12,691  

Shares subject to cancellation

 (50 )   -     -     -     -  

Contributed surplus

 2,527     2,530     2,531     2,536     2,579  

Accumulated other comprehensive (loss) income

 5     32     (43 )   48     66  

Deficit

 (5,385 )   (5,627 )   (4,988 )   (4,970 )   (7,952 )

Total equity attributable to owners of the parent

 13,778     13,635     13,838     13,129     10,154  

Non-controlling interest

 981     758     856     666     14  

Total equity

 14,759     14,393     14,694     13,795     10,168  

Total liabilities and equity

 39,426     40,100     39,459     36,924     35,893  
                             

Number of common shares outstanding

 775.4     778.0     777.5     754.1     752.3  

 

BCE Inc. Supplementary Financial Information – Fourth Quarter 2011 Page 11

 

BCE Inc.
Consolidated Cash Flow Data

($ millions of Canadian dollars, except where otherwise indicated) (unaudited)

   Q4
2011		     Q4
2010		      

$ change

       Total
2011		     Total
2010		      

$ change

  

Net earnings

   573     344       229       2,574     2,190       384  

Adjustments to reconcile net earnings to cash flows from operating activities

                                          

Severance, acquisition and other costs

   (1 )   86       (87 )     409     262       147  

Depreciation and amortization

   842     800       42       3,261     3,125       136  

Net employee benefit plans cost

   47     73       (26 )     193     294       (101 )

Net interest expense

   213     265       (52 )     821     1,049       (228 )

Gains on investments

   -     -       -       (89 )   (135 )     46  

Income taxes

   247     159       88       720     632       88  

Contributions to employee pension plans

   (961 )   (901 )     (60 )     (1,491 )   (1,315 )     (176 )

Payments under other employee future benefit plans

   (26 )   (25 )     (1 )     (102 )   (98 )     (4 )

Severance and other costs paid

   (68 )   (60 )     (8 )     (411 )   (238 )     (173 )

Acquisition costs paid

   (28 )   (12 )     (16 )     (70 )   (24 )     (46 )

Interest paid

   (234 )   (292 )     58       (795 )   (1,092 )     297  

Income taxes paid (net of refunds)

   (73 )   (54 )     (19 )     (130 )   (129 )     (1 )

Operating assets and liabilities

   307     108       199       (21 )   (154 )     133  

Cash flows from operating activities

   838     491       347       4,869     4,367       502  

Bell Aliant dividends/distributions paid to BCE

   48     73       (25 )     214     291       (77 )

Capital expenditures

   (1,008 )   (1,034 )     26       (3,256 )   (2,998 )     (258 )

Cash dividends paid on preferred shares

   (31 )   (28 )     (3 )     (118 )   (108 )     (10 )

Cash dividends/distributions paid by subsidiaries to non-controlling interest

   (72 )   -       (72 )     (315 )   -       (315 )

Acquisition costs paid

   28     12       16       70     24       46  

Bell Aliant Free Cash Flow

   11     (45 )     56       47     (139 )     186  

Free Cash Flow (4)

   (186 )   (531 )     345       1,511     1,437       74  

Bell Aliant free cash flow, excluding dividends/distributions paid

   (59 )   (28 )     (31 )     (261 )   (152 )     (109 )

Business acquisitions

   -     (73 )     73       (680 )   (60 )     (620 )

Acquisition costs paid

   (28 )   (12 )     (16 )     (70 )   (24 )     (46 )

Business dispositions

   -     -       -       2     8       (6 )

Increase in investments

   (6 )   (4 )     (2 )     (12 )   (44 )     32  

Decrease in investments

   6     -       6       56     139       (83 )

Other investing activities

   2     1       1       6     7       (1 )

Increase (decrease) in notes payable and bank advances

   54     104       (50 )     30     250       (220 )

Increase (reduction) in securitized trade receivables

   32     (22 )     54       (318 )   (37 )     (281 )

Issue of long-term debt

   8     1,016       (1,008 )     2,314     1,366       948  

Repayment of long-term debt

   (342 )   (321 )     (21 )     (2,350 )   (956 )     (1,394 )

Cash dividends paid on common shares

   (403 )   (346 )     (57 )     (1,520 )   (1,318 )     (202 )

Issue of common shares

   37     11       26       152     39       113  

Repurchase of common shares

   (143 )   (125 )     (18 )     (143 )   (500 )     357  

Issue of preferred shares

   -     -       -       345     -       345  

Issue of equity securities by subsidiaries to non-controlling interest

   115     -       115       403     -       403  

Other financing activities

   (16 )   (80 )     64       (61 )   (68 )     7  

 

  (743 )   121       (864 )     (2,107 )   (1,350 )     (757 )

Net (decrease) increase in cash and cash equivalents

   (929 )   (410 )     (519 )     (596 )   87       (683 )

Cash and cash equivalents at beginning of period

   1,104     1,181       (77 )     771     684       87  

Cash and cash equivalents at end of period

   175     771       (596 )     175     771       (596 )
                                           

Other information

                                          

Cash flow per share (10)

 $ (0.23 ) $ (0.59 )  

$

 (0.36 )  

$

 2.09   $ 2.29    

$

 (0.20 )

Annualized cash flow yield (11)

   4.6 %   5.4 %     (0.8 ) pts     4.6 %   5.4 %     (0.8 ) pts
                                           

 

BCE Inc. Supplementary Financial Information – Fourth Quarter 2011 Page 12

 

BCE Inc.
Consolidated Cash Flow Data – Historical Trend

($ millions of Canadian dollars, except where otherwise indicated) (unaudited)

   Total
2011		       Q4 11     Q3 11     Q2 11     Q1 11       Total
2010		       Q4 10     Q3 10     Q2 10     Q1 10  

Net earnings

   2,574       573     736     683     582       2,190       344     482     630     734  

Adjustments to reconcile net earnings to cash flows from operating activities

                                                                  

Depreciation and amortization

   3,261       842     808     821     790       3,125       800     781     778     766  

Severance, acquisition and other costs

   409       (1 )   130     219     61       262       86     129     15     32  

Net employee benefit plans cost

   193       47     50     49     47       294       73     72     73     76  

Net interest expense

   821       213     207     212     189       1,049       265     260     262     262  

Gains on investments

   (89 )     -     -     (89 )   -       (135 )     -     -     (10 )   (125 )

Income taxes

   720       247     80     194     199       632       159     98     172     203  

Contributions to employee pension plans

   (1,491 )     (961 )   (91 )   (85 )   (354 )     (1,315 )     (901 )   (115 )   (144 )   (155 )

Payments under other employee future benefit plans

   (102 )     (26 )   (25 )   (27 )   (24 )     (98 )     (25 )   (25 )   (24 )   (24 )

Severance and other costs paid

   (411 )     (68 )   (37 )   (59 )   (247 )     (238 )     (60 )   (35 )   (49 )   (94 )

Acquisition costs paid

   (70 )     (28 )   (7 )   (31 )   (4 )     (24 )     (12 )   (6 )   (2 )   (4 )

Interest paid

   (795 )     (234 )   (178 )   (216 )   (167 )     (1,092 )     (292 )   (245 )   (305 )   (250 )

Income taxes paid (net of refunds)

   (130 )     (73 )   (24 )   (25 )   (8 )     (129 )     (54 )   (15 )   (36 )   (24 )

Operating assets and liabilities

   (21 )     307     267     (265 )   (330 )     (154 )     108     170     (39 )   (393 )

Cash flows from operating activities

   4,869       838     1,916     1,381     734       4,367       491     1,551     1,321     1,004  

Bell Aliant dividends/distributions paid to BCE

   214       48     48     47     71       291       73     73     72     73  

Capital expenditures

   (3,256 )     (1,008 )   (814 )   (800 )   (634 )     (2,998 )     (1,034 )   (757 )   (672 )   (535 )

Cash dividends paid on preferred shares

   (118 )     (31 )   (31 )   (28 )   (28 )     (108 )     (28 )   (25 )   (27 )   (28 )

Cash dividends/distributions paid by subsidiaries to non-controlling interest

   (315 )     (72 )   (75 )   (77 )   (91 )     -       -     -     -     -  

Acquisition costs paid

   70       28     7     31     4       24       12     6     2     4  

Bell Aliant Free Cash Flow

   47       11     (46 )   (127 )   209       (139 )     (45 )   (42 )   (94 )   42  

Free Cash Flow

   1,511       (186 )   1,005     427     265       1,437       (531 )   806     602     560  

Bell Aliant free cash flow, excluding dividends/distributions paid

   (261 )     (59 )   (2 )   80     (280 )     (152 )     (28 )   (31 )   22     (115 )

Business acquisitions

   (680 )     -     -     (680 )   -       (60 )     (73 )   -     4     9  

Acquisition costs paid

   (70 )     (28 )   (7 )   (31 )   (4 )     (24 )     (12 )   (6 )   (2 )   (4 )

Business dispositions

   2       -     -     -     2       8       -     -     8     -  

Increase in investments

   (12 )     (6 )   (2 )   (2 )   (2 )     (44 )     (4 )   (7 )   (25 )   (8 )

Decrease in investments

   56       6     2     45     3       139       -     6     123     10  

Other investing activities

   6       2     1     (1 )   4       7       1     -     3     3  

Increase (decrease) in notes payable and bank advances

   30       54     106     (656 )   526       250       104     47     (9 )   108  

(Reduction) increase in securitized trade receivables

   (318 )     32     -     (348 )   (2 )     (37 )     (22 )   4     (19 )   -  

Issue of long-term debt

   2,314       8     3     1,301     1,002       1,366       1,016     350     -     -  

Repayment of long-term debt

   (2,350 )     (342 )   (193 )   (1,739 )   (76 )     (956 )     (321 )   (404 )   (175 )   (56 )

Cash dividends paid on common shares

   (1,520 )     (403 )   (402 )   (371 )   (344 )     (1,318 )     (346 )   (329 )   (333 )   (310 )

Issue of common shares

   152       37     15     51     49       39       11     15     12     1  

Repurchase of common shares

   (143 )     (143 )   -     -     -       (500 )     (125 )   (125 )   (125 )   (125 )

Issue of preferred shares

   345       -     345     -     -       -       -     -     -     -  

Issue of equity securities by subsidiaries to non-controlling interest

   403       115     -     -     288       -       -     -     -     -  

Other financing activities

   (61 )     (16 )   (43 )   28     (30 )     (68 )     (80 )   (67 )   90     (11 )

 

  (2,107 )     (743 )   (177 )   (2,323 )   1,136       (1,350 )     121     (547 )   (426 )   (498 )

Net (decrease) increase in cash and cash equivalents

   (596 )     (929 )   828     (1,896 )   1,401       87       (410 )   259     176     62  

Cash and cash equivalents at beginning of period

   771       1,104     276     2,172     771       684       1,181     922     746     684  

Cash and cash equivalents at end of period

   175       175     1,104     276     2,172       771       771     1,181     922     746  
                                                                   

Other information

                                                                  

Cash flow per share

 $ 2.09     $ (0.23 ) $ 1.43   $ 0.76   $ 0.13     $ 2.29     $ (0.59 ) $ 1.17   $ 0.98   $ 0.73  

Annualized cash flow yield

   4.6 %     4.6 %   3.8 %   3.3 %   4.3 %     5.4 %     5.4 %   7.8 %   7.7 %   7.7 %

 

BCE Inc. Supplementary Financial Information – Fourth Quarter 2011 Page 13

 

Accompanying Notes

(1) Throughout this report, BCE means BCE Inc., its subsidiaries, joint ventures and associates; Bell means our Bell Wireline, Bell Wireless and Bell Media segments on an aggregate basis; and Bell Aliant means Bell Aliant Inc. and its subsidiaries.
 
(2)

We report our results of operations in four segments: Bell Wireline, Bell Wireless, Bell Media and Bell Aliant. Our reporting structure reflects how we manage our business and how we classify our operations for planning and measuring performance.

In the second quarter of 2011, BCE acquired the remaining 85% of CTV Inc. (CTV) common shares that it did not already own. CTV is a media company that holds specialty television, digital media, conventional TV and radio broadcasting assets. CTV is reported as a new segment, Bell Media. As at the acquisition date, we transferred certain assets from our wireline business segment to this new segment.

In the first quarter of 2011, Bell acquired xwave, a division of Bell Aliant, specializing in IT professional services and advanced technology solutions. As a result, we have restated prior period results for Bell Wireline and Bell Aliant to reflect the change of ownership in xwave between Bell and Bell Aliant. Our reportable segments and consolidated results did not change as a result of this restatement.
 
(3)

Non-GAAP Financial Measures

EBITDA

 The term EBITDA does not have any standardized meaning according to IFRS. It is therefore unlikely to be comparable to similar measures presented by other companies.

We define EBITDA as operating revenues less operating costs (including pension current service costs). We use EBITDA to evaluate the performance of our businesses as it reflects their ongoing profitability. We believe that certain investors and analysts use 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. EBITDA also is one component in the determination of short-term incentive compensation for all management employees. EBITDA has no directly comparable IFRS financial measure. Alternatively, it may be reconciled to net earnings as shown in this document.

Adjusted net earnings and Adjusted earnings per share (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 companies.

We define Adjusted net earnings as net earnings attributable to common shareholders before severance, acquisition and other costs, and net (gains) losses on investments. For 2010, Adjusted net earnings also excludes the fair value adjustments on the fund unit liability and adjusts earnings to reflect the interest on the fund unit liability as non-controlling interest. We define Adjusted EPS as Adjusted net earnings per BCE Inc. common share.

We use Adjusted net earnings and Adjusted EPS, among other measures, to assess the performance of our businesses without the effects of severance, acquisition and other costs, and net (gains) losses on investments, net of tax and non-controlling interest. 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 earnings per share.

 

BCE Inc. Supplementary Financial Information – Fourth Quarter 2011 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 companies.

We define free cash flow as cash flows from operating activities, excluding acquisition costs paid, and dividends/distributions received from Bell Aliant less capital expenditures, preferred share dividends, dividends/distributions paid by subsidiaries to non-controlling interest and Bell Aliant free cash flow.

We consider free cash flow to be an important indicator of the financial strength and performance of our business because it shows how much cash is available to repay debt and reinvest in our company. We present free cash flow consistently from period to period, which allows us to compare our financial performance on a consistent basis.

We believe that certain investors and analysts use free cash flow to value a business and its underlying assets.

The most comparable IFRS financial measure is cash from operating activities.
 
(4)

EBITDA margin is calculated as follows:

EBITDA
Operating revenues
 
(5)

Capital Intensity is calculated as follows:

Capital expenditures
Operating revenues
 
(6)

Average revenue per unit (ARPU) represents the measurement of the average revenue generated by each unit, expressed as a rate per month for the year.
 
(7)

Churn is the rate at which existing subscribers cancel their services. Churn is calculated as the number of subscribers disconnected divided by the average subscriber base.
 
(8)

Cost of acquisition (COA) is also referred to as subscriber acquisition costs. This measure is expressed per gross activation. It includes costs associated with acquiring a customer such as hardware subsidies, marketing and distribution costs.
 
(9)

Cash flow per share is calculated as follows:

Cash flow from operating activities (excludes interest on fund unit liability) less capital expenditures
Average number of common shares outstanding
 
(10)

Annualized cash flow yield is calculated as follows:

Trailing 12 month free cash flow
Number of common shares outstanding at end of period multiplied by share price at end of period

 

BCE Inc. Supplementary Financial Information – Fourth Quarter 2011 Page 15