EX-99.2 3 supp_q413.htm SUPPLEMENTARY FINANCIAL INFORMATION - FOURTH QUARTER 2013 Supplementary Financial Information

EXHIBIT 99.2

 

 

 

 

BCE (1)
Consolidated Operational Data (2)

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

   Q4
2013		     Q4
2012		       $ change  

% change

       Total
2013		     Total
2012		       $ change   % change  

Operating revenues

   5,382     5,161       221   4.3 %     20,400     19,978       422   2.1 %

Operating costs (A)

   (3,312 )   (3,205 )     (107 ) (3.3 %)     (12,019 )   (11,865 )     (154 ) (1.3 %)

Post-employment benefit plans service cost

   (72 )   (60 )     (12 ) (20.0 %)     (292 )   (225 )     (67 ) (29.8 %)

EBITDA (3)

   1,998     1,896       102   5.4 %     8,089     7,888       201   2.5 %

EBITDA margin (4)

   37.1 %   36.7 %         0.4  pts     39.7 %   39.5 %         0.2  pts

Severance, acquisition and other costs

   (48 )   (69 )     21   30.4 %     (406 )   (133 )     (273 ) n.m.  

Depreciation

   (695 )   (693 )     (2 ) (0.3 %)     (2,734 )   (2,678 )     (56 ) (2.1 %)

Amortization

   (160 )   (175 )     15   8.6 %     (646 )   (714 )     68   9.5 %

Finance costs

                                                  

Interest expense

   (240 )   (224 )     (16 ) (7.1 %)     (931 )   (865 )     (66 ) (7.6 %)

Interest on post-employment benefit obligations

   (37 )   (32 )     (5 ) (15.6 %)     (150 )   (131 )     (19 ) (14.5 %)

Other income (expense)

   1     243       (242 ) (99.6 %)     (6 )   269       (275 ) n.m.  

Income taxes

   (226 )   (181 )     (45 ) (24.9 %)     (828 )   (760 )     (68 ) (8.9 %)

Net earnings

   593     765       (172 ) (22.5 %)     2,388     2,876       (488 ) (17.0 %)

Net earnings attributable to:

                                                  

Common shareholders

   495     666       (171 ) (25.7 %)     1,975     2,456       (481 ) (19.6 %)

Preferred shareholders

   33     34       (1 ) (2.9 %)     131     139       (8 ) (5.8 %)

Non-controlling interest

   65     65       -   0.0 %     282     281       1   0.4 %

Net earnings

   593     765       (172 ) (22.5 %)     2,388     2,876       (488 ) (17.0 %)

Net earnings per common share - basic

 $ 0.64   $ 0.86     $ (0.22 ) (25.6 %)   $ 2.55   $ 3.17     $ (0.62 ) (19.6 %)

Net earnings per common share - diluted

 $ 0.63   $ 0.86     $ (0.23 ) (26.7 %)   $ 2.54   $ 3.17     $ (0.63 ) (19.9 %)

Dividends per common share

 $ 0.5825   $ 0.5675     $ 0.015   2.6 %   $ 2.3300   $ 2.2200     $ 0.110   5.0 %

Average number of common shares outstanding - basic (millions)

   775.9     775.0                   775.8     774.3              

Average number of common shares outstanding - diluted (millions)

   776.6     775.4                   776.4     774.6              

Number of common shares outstanding (millions)

   775.9     775.4                   775.9     775.4              

Adjusted Net Earnings and EPS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net earnings attributable to common shareholders

   495     666       (171 ) (25.7 %)     1,975     2,456       (481 ) (19.6 %)

Severance, acquisition and other costs

   33     46       (13 ) (28.3 %)     299     94       205   n.m.  

Net losses (gains) on investments

   12     (248 )     260   n.m.       7     (256 )     263   n.m.  

Premiums on early redemption of debt

   -     -       -   0.0 %     36     -       36   n.m.  

Adjusted net earnings attributable to common shareholders (3)

   540     464       76   16.4 %     2,317     2,294       23   1.0 %

Impact on net earnings per share

 $ 0.06   $ (0.26 )   $ 0.32   n.m.     $ 0.44   $ (0.21 )   $ 0.65   n.m.  

Adjusted EPS (3)

 $ 0.70   $ 0.60     $ 0.10   16.7 %   $ 2.99   $ 2.96     $ 0.03   1.0 %
                                                   

 

(A) Excludes post-employment benefit plans service cost
n.m. : not meaningful

BCE Supplementary Financial Information - Fourth Quarter 2013  Page 2

 

BCE
Consolidated Operational Data - Historical Trend

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

   Total
2013		       Q4 13     Q3 13     Q2 13     Q1 13       Total
2012		       Q4 12     Q3 12     Q2 12     Q1 12  

Operating revenues

   20,400       5,382     5,099     5,000     4,919       19,978       5,161     4,982     4,925     4,910  

Operating costs (A)

   (12,019 )     (3,312 )   (2,962 )   (2,865 )   (2,880 )     (11,865 )     (3,205 )   (2,926 )   (2,819 )   (2,915 )

Post-employment benefit plans service cost

   (292 )     (72 )   (74 )   (69 )   (77 )     (225 )     (60 )   (37 )   (62 )   (66 )

EBITDA

   8,089       1,998     2,063     2,066     1,962       7,888       1,896     2,019     2,044     1,929  

EBITDA margin

   39.7 %     37.1 %   40.5 %   41.3 %   39.9 %     39.5 %     36.7 %   40.5 %   41.5 %   39.3 %

Severance, acquisition and other costs

   (406 )     (48 )   (297 )   (28 )   (33 )     (133 )     (69 )   (25 )   (20 )   (19 )

Depreciation

   (2,734 )     (695 )   (683 )   (681 )   (675 )     (2,678 )     (693 )   (673 )   (666 )   (646 )

Amortization

   (646 )     (160 )   (162 )   (161 )   (163 )     (714 )     (175 )   (180 )   (178 )   (181 )

Finance costs

                                                                  

Interest expense

   (931 )     (240 )   (242 )   (228 )   (221 )     (865 )     (224 )   (225 )   (209 )   (207 )

Interest on post-employment benefit obligations

   (150 )     (37 )   (38 )   (38 )   (37 )     (131 )     (32 )   (33 )   (33 )   (33 )

Other (expense) income

   (6 )     1     (24 )   (63 )   80       269       243     (8 )   55     (21 )

Income taxes

   (828 )     (226 )   (165 )   (196 )   (241 )     (760 )     (181 )   (231 )   (157 )   (191 )

Net earnings

   2,388       593     452     671     672       2,876       765     644     836     631  

Net earnings attributable to:

                                                                  

Common shareholders

   1,975       495     343     571     566       2,456       666     527     732     531  

Preferred shareholders

   131       33     32     33     33       139       34     36     34     35  

Non-controlling interest

   282       65     77     67     73       281       65     81     70     65  

Net earnings

   2,388       593     452     671     672       2,876       765     644     836     631  

Net earnings per common share - basic

 $ 2.55     $ 0.64   $ 0.44   $ 0.74   $ 0.73     $ 3.17     $ 0.86   $ 0.68   $ 0.94   $ 0.69  

Net earnings per common share - diluted

 $ 2.54     $ 0.63   $ 0.44   $ 0.74   $ 0.73     $ 3.17     $ 0.86   $ 0.68   $ 0.94   $ 0.69  

Dividends per common share

 $ 2.3300     $ 0.5825   $ 0.5825   $ 0.5825   $ 0.5825     $ 2.2200     $ 0.5675   $ 0.5675   $ 0.5425   $ 0.5425  

Average number of common shares outstanding - basic (millions)

   775.8       775.9     775.9     775.9     775.7       774.3       775.0     774.2     773.7     774.3  

Average number of common shares outstanding - diluted (millions)

   776.4       776.6     776.3     776.6     776.3       774.6       775.4     774.8     774.0     774.7  

Number of common shares outstanding (millions)

   775.9       775.9     775.9     775.9     775.9       775.4       775.4     774.6     773.9     773.6  

Adjusted Net Earnings and EPS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net earnings attributable to common shareholders

   1,975       495     343     571     566       2,456       666     527     732     531  

Severance, acquisition and other costs

   299       33     222     21     23       94       46     19     15     14  

Net losses (gains) on investments

   7       12     (2 )   (1 )   (2 )     (256 )     (248 )   -     -     (8 )

Premiums on early redemption of debt

   36       -     21     3     12       -       -     -     -     -  

Adjusted net earnings attributable to common shareholders

   2,317       540     584     594     599       2,294       464     546     747     537  

Impact on net earnings per share

 $ 0.44     $ 0.06   $ 0.31   $ 0.03   $ 0.04     $ (0.21 )   $ (0.26 ) $ 0.02   $ 0.03   $ -  

Adjusted EPS

 $ 2.99     $ 0.70   $ 0.75   $ 0.77   $ 0.77     $ 2.96     $ 0.60   $ 0.70   $ 0.97   $ 0.69  

 

(A) Excludes post-employment benefit plans service cost

BCE Supplementary Financial Information - Fourth Quarter 2013  Page 3

 

BCE (1)
Segmented Data (2)

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

 Q4
2013		   Q4
2012		     $ change  

% change

     Total
2013		   Total
2012		     $ change  

% change

  

Revenues

                                      

Bell Wireline

 2,601   2,608     (7 ) (0.3 %)   10,097   10,220     (123 ) (1.2 %)

Bell Wireless

 1,505   1,458     47   3.2 %   5,849   5,586     263   4.7 %

Bell Media

 821   591     230   38.9 %   2,557   2,183     374   17.1 %

Inter-segment eliminations

 (114 ) (80 )   (34 ) (42.5 %)   (394 ) (344 )   (50 ) (14.5 %)

Total Bell

 4,813   4,577     236   5.2 %   18,109   17,645     464   2.6 %

Bell Aliant

 688   694     (6 ) (0.9 %)   2,759   2,761     (2 ) (0.1 %)

Inter-segment eliminations

 (119 ) (110 )   (9 ) (8.2 %)   (468 ) (428 )   (40 ) (9.3 %)

Total BCE

 5,382   5,161     221   4.3 %   20,400   19,978     422   2.1 %
                                       

Operating costs

                                      

Bell Wireline

 (1,667 ) (1,677 )   10   0.6 %   (6,303 ) (6,300 )   (3 ) (0.0 %)

Bell Wireless

 (976 ) (979 )   3   0.3 %   (3,509 ) (3,471 )   (38 ) (1.1 %)

Bell Media

 (591 ) (419 )   (172 ) (41.1 %)   (1,874 ) (1,622 )   (252 ) (15.5 %)

Inter-segment eliminations

 114   80     34   42.5 %   394   344     50   14.5 %

Total Bell

 (3,120 ) (2,995 )   (125 ) (4.2 %)   (11,292 ) (11,049 )   (243 ) (2.2 %)

Bell Aliant

 (383 ) (380 )   (3 ) (0.8 %)   (1,487 ) (1,469 )   (18 ) (1.2 %)

Inter-segment eliminations

 119   110     9   8.2 %   468   428     40   9.3 %

Total BCE

 (3,384 ) (3,265 )   (119 ) (3.6 %)   (12,311 ) (12,090 )   (221 ) (1.8 %)
                                       

EBITDA

                                      

Bell Wireline

 934   931     3   0.3 %   3,794   3,920     (126 ) (3.2 %)

Margin (4)

 35.9 % 35.7 %       0.2  pts   37.6 % 38.4 %       (0.8 ) pts

Bell Wireless

 529   479     50   10.4 %   2,340   2,115     225   10.6 %

Margin

 35.1 % 32.9 %       2.2  pts   40.0 % 37.9 %       2.1  pts

Bell Media

 230   172     58   33.7 %   683   561     122   21.7 %

Margin

 28.0 % 29.1 %       (1.1 ) pts   26.7 % 25.7 %       1.0  pts

Total Bell

 1,693   1,582     111   7.0 %   6,817   6,596     221   3.4 %

Margin

 35.2 % 34.6 %       0.6  pts   37.6 % 37.4 %       0.2  pts

Bell Aliant

 305   314     (9 ) (2.9 %)   1,272   1,292     (20 ) (1.5 %)

Margin

 44.3 % 45.2 %       (0.9 ) pts   46.1 % 46.8 %       (0.7 ) pts

Total BCE

 1,998   1,896     102   5.4 %   8,089   7,888     201   2.5 %

Margin

 37.1 % 36.7 %       0.4  pts   39.7 % 39.5 %       0.2  pts
                                       

Capital expenditures

                                      

Bell Wireline

 702   561     (141 ) (25.1 %)   2,247   2,193     (54 ) (2.5 %)

Capital Intensity (5)

 27.0 % 21.5 %       (5.5 ) pts   22.3 % 21.5 %       (0.8 ) pts

Bell Wireless

 226   177     (49 ) (27.7 %)   639   637     (2 ) (0.3 %)

Capital Intensity

 15.0 % 12.1 %       (2.9 ) pts   10.9 % 11.4 %       0.5  pts

Bell Media

 64   41     (23 ) (56.1 %)   115   93     (22 ) (23.7 %)

Capital Intensity

 7.8 % 6.9 %       (0.9 ) pts   4.5 % 4.3 %       (0.2 ) pts

Total Bell

 992   779     (213 ) (27.3 %)   3,001   2,923     (78 ) (2.7 %)

Capital Intensity

 20.6 % 17.0 %       (3.6 ) pts   16.6 % 16.6 %       0.0  pts

Bell Aliant

 147   135     (12 ) (8.9 %)   570   592     22   3.7 %

Capital Intensity

 21.4 % 19.5 %       (1.9 ) pts   20.7 % 21.4 %       0.7  pts

Total BCE

 1,139   914     (225 ) (24.6 %)   3,571   3,515     (56 ) (1.6 %)

Capital Intensity

 21.2 % 17.7 %       (3.5 ) pts   17.5 % 17.6 %       0.1  pts

BCE Supplementary Financial Information - Fourth Quarter 2013  Page 4

 

BCE
Segmented Data - Historical Trend

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

 Total
2013		     Q4 13   Q3 13   Q2 13   Q1 13     Total
2012		     Q4 12   Q3 12   Q2 12   Q1 12  

Revenues

                                              

Bell Wireline

 10,097     2,601   2,482   2,506   2,508     10,220     2,608   2,505   2,528   2,579  

Bell Wireless

 5,849     1,505   1,493   1,442   1,409     5,586     1,458   1,434   1,368   1,326  

Bell Media

 2,557     821   664   559   513     2,183     591   546   534   512  

Inter-segment eliminations

 (394 )   (114 ) (115 ) (83 ) (82 )   (344 )   (80 ) (92 ) (89 ) (83 )

Total Bell

 18,109     4,813   4,524   4,424   4,348     17,645     4,577   4,393   4,341   4,334  

Bell Aliant

 2,759     688   696   691   684     2,761     694   698   687   682  

Inter-segment eliminations

 (468 )   (119 ) (121 ) (115 ) (113 )   (428 )   (110 ) (109 ) (103 ) (106 )

Total BCE

 20,400     5,382   5,099   5,000   4,919     19,978     5,161   4,982   4,925   4,910  
                                               

Operating costs

                                              

Bell Wireline

 (6,303 )   (1,667 ) (1,559 ) (1,527 ) (1,550 )   (6,300 )   (1,677 ) (1,527 ) (1,520 ) (1,576 )

Bell Wireless

 (3,509 )   (976 ) (876 ) (833 ) (824 )   (3,471 )   (979 ) (881 ) (809 ) (802 )

Bell Media

 (1,874 )   (591 ) (465 ) (403 ) (415 )   (1,622 )   (419 ) (389 ) (383 ) (431 )

Inter-segment eliminations

 394     114   115   83   82     344     80   92   89   83  

Total Bell

 (11,292 )   (3,120 ) (2,785 ) (2,680 ) (2,707 )   (11,049 )   (2,995 ) (2,705 ) (2,623 ) (2,726 )

Bell Aliant

 (1,487 )   (383 ) (372 ) (369 ) (363 )   (1,469 )   (380 ) (367 ) (361 ) (361 )

Inter-segment eliminations

 468     119   121   115   113     428     110   109   103   106  

Total BCE

 (12,311 )   (3,384 ) (3,036 ) (2,934 ) (2,957 )   (12,090 )   (3,265 ) (2,963 ) (2,881 ) (2,981 )
                                               

EBITDA

                                              

Bell Wireline

 3,794     934   923   979   958     3,920     931   978   1,008   1,003  

Margin

 37.6 %   35.9 % 37.2 % 39.1 % 38.2 %   38.4 %   35.7 % 39.0 % 39.9 % 38.9 %

Bell Wireless

 2,340     529   617   609   585     2,115     479   553   559   524  

Margin

 40.0 %   35.1 % 41.3 % 42.2 % 41.5 %   37.9 %   32.9 % 38.6 % 40.9 % 39.5 %

Bell Media

 683     230   199   156   98     561     172   157   151   81  

Margin

 26.7 %   28.0 % 30.0 % 27.9 % 19.1 %   25.7 %   29.1 % 28.8 % 28.3 % 15.8 %

Total Bell

 6,817     1,693   1,739   1,744   1,641     6,596     1,582   1,688   1,718   1,608  

Margin

 37.6 %   35.2 % 38.4 % 39.4 % 37.7 %   37.4 %   34.6 % 38.4 % 39.6 % 37.1 %

Bell Aliant

 1,272     305   324   322   321     1,292     314   331   326   321  

Margin

 46.1 %   44.3 % 46.6 % 46.6 % 46.9 %   46.8 %   45.2 % 47.4 % 47.5 % 47.1 %

Total BCE

 8,089     1,998   2,063   2,066   1,962     7,888     1,896   2,019   2,044   1,929  

Margin

 39.7 %   37.1 % 40.5 % 41.3 % 39.9 %   39.5 %   36.7 % 40.5 % 41.5 % 39.3 %
                                               

Capital expenditures

                                              

Bell Wireline

 2,247     702   562   523   460     2,193     561   514   586   532  

Capital Intensity

 22.3 %   27.0 % 22.6 % 20.9 % 18.3 %   21.5 %   21.5 % 20.5 % 23.2 % 20.6 %

Bell Wireless

 639     226   157   134   122     637     177   152   172   136  

Capital Intensity

 10.9 %   15.0 % 10.5 % 9.3 % 8.7 %   11.4 %   12.1 % 10.6 % 12.6 % 10.3 %

Bell Media

 115     64   23   16   12     93     41   22   18   12  

Capital Intensity

 4.5 %   7.8 % 3.5 % 2.9 % 2.3 %   4.3 %   6.9 % 4.0 % 3.4 % 2.3 %

Total Bell

 3,001     992   742   673   594     2,923     779   688   776   680  

Capital Intensity

 16.6 %   20.6 % 16.4 % 15.2 % 13.7 %   16.6 %   17.0 % 15.7 % 17.9 % 15.7 %

Bell Aliant

 570     147   138   157   128     592     135   144   176   137  

Capital Intensity

 20.7 %   21.4 % 19.8 % 22.7 % 18.7 %   21.4 %   19.5 % 20.6 % 25.6 % 20.1 %

Total BCE

 3,571     1,139   880   830   722     3,515     914   832   952   817  

Capital Intensity

 17.5 %   21.2 % 17.3 % 16.6 % 14.7 %   17.6 %   17.7 % 16.7 % 19.3 % 16.6 %

 

BCE Supplementary Financial Information - Fourth Quarter 2013  Page 5

 

Bell Wireline (1) (2)

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

 Q4
2013		   Q4
2012		    

% change

     Total
2013		   Total
2012		    

% change

  

Bell Wireline

                              

Local & access (A)

 606   649     (6.6 %)   2,497   2,688     (7.1 %)

Long distance

 171   191     (10.5 %)   722   801     (9.9 %)

Data (A)

 1,513   1,453     4.1 %   5,828   5,666     2.9 %

Equipment & other (A)

 222   237     (6.3 %)   707   750     (5.7 %)

Total external revenues

 2,512   2,530     (0.7 %)   9,754   9,905     (1.5 %)

Inter-segment revenues

 89   78     14.1 %   343   315     8.9 %

Total Bell Wireline operating revenues

 2,601   2,608     (0.3 %)   10,097   10,220     (1.2 %)

Operating costs

 (1,667 ) (1,677 )   0.6 %   (6,303 ) (6,300 )   (0.0 %)

EBITDA

 934   931     0.3 %   3,794   3,920     (3.2 %)

EBITDA Margin

 35.9 % 35.7 %   0.2  pts   37.6 % 38.4 %   (0.8 ) pts

 

                              

Capital expenditures

 702   561     (25.1 %)   2,247   2,193     (2.5 %)

Capital Intensity

 27.0 % 21.5 %   (5.5 ) pts   22.3 % 21.5 %   (0.8 ) pts

Local

                              

Network access services (NAS)

                              

Residential

 2,652,429   2,940,314     (9.8 %)   2,652,429   2,940,314     (9.8 %)

Business

 2,589,820   2,704,625     (4.2 %)   2,589,820   2,704,625     (4.2 %)

Total

 5,242,249   5,644,939     (7.1 %)   5,242,249   5,644,939     (7.1 %)

Network access service net (losses)/activations

                              

Residential

 (63,281 ) (87,029 )   27.3 %   (287,885 ) (335,807 )   14.3 %

Business

 (32,478 ) (36,641 )   11.4 %   (114,805 ) (120,910 )   5.0 %

Total

 (95,759 ) (123,670 )   22.6 %   (402,690 ) (456,717 )   11.8 %

Internet

                              

High Speed Internet net activations (B)

 15,690   7,269     n.m.     57,722   37,188     55.2 %

High Speed Internet subscribers EOP (B)

 2,184,543   2,126,821     2.7 %   2,184,543   2,126,821     2.7 %

TV

                              

Net subscriber activations

 36,189   19,218     88.3 %   122,450   69,445     76.3 %

Fibe TV

 60,301   48,234     25.0 %   231,132   163,127     41.7 %

Total subscribers EOP

 2,278,433   2,155,983     5.7 %   2,278,433   2,155,983     5.7 %

Fibe TV

 479,430   248,298     93.1 %   479,430   248,298     93.1 %

 

(A) We have reclassified amounts for the prior period to make them consistent with the presentation for the current period.
(B) Following a reconciliation of business Internet customer account records, we adjusted Q1 2012 beginning of period Internet subscriber base by 6,678 customers with related adjustments to quarterly net activations reported in 2012 and 2013.
n.m. : not meaningful

BCE Supplementary Financial Information - Fourth Quarter 2013  Page 6

 

Bell Wireline - Historical Trend

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

 Total
2013		     Q4 13   Q3 13   Q2 13   Q1 13     Total
2012		     Q4 12   Q3 12   Q2 12   Q1 12  

Bell Wireline

                                              

Local & access

 2,497     606   613   632   646     2,688     649   666   680   693  

Long distance

 722     171   184   183   184     801     191   192   206   212  

Data

 5,828     1,513   1,426   1,456   1,433     5,666     1,453   1,391   1,400   1,422  

Equipment & other

 707     222   168   153   164     750     237   178   163   172  

Total external revenues

 9,754     2,512   2,391   2,424   2,427     9,905     2,530   2,427   2,449   2,499  

Inter-segment revenues

 343     89   91   82   81     315     78   78   79   80  

Total Bell Wireline operating revenues

 10,097     2,601   2,482   2,506   2,508     10,220     2,608   2,505   2,528   2,579  

Operating costs

 (6,303 )   (1,667 ) (1,559 ) (1,527 ) (1,550 )   (6,300 )   (1,677 ) (1,527 ) (1,520 ) (1,576 )

EBITDA

 3,794     934   923   979   958     3,920     931   978   1,008   1,003  

EBITDA Margin

 37.6 %   35.9 % 37.2 % 39.1 % 38.2 %   38.4 %   35.7 % 39.0 % 39.9 % 38.9 %
                                               

Capital expenditures

 2,247     702   562   523   460     2,193     561   514   586   532  

Capital Intensity

 22.3 %   27.0 % 22.6 % 20.9 % 18.3 %   21.5 %   21.5 % 20.5 % 23.2 % 20.6 %

Local

                                              

Network access services (NAS)

                                              

Residential (A)

 2,652,429     2,652,429   2,715,710   2,774,667   2,856,757     2,940,314     2,940,314   3,027,343   3,111,883   3,205,002  

Business

 2,589,820     2,589,820   2,622,298   2,650,824   2,679,736     2,704,625     2,704,625   2,741,266   2,766,006   2,800,124  

Total

 5,242,249     5,242,249   5,338,008   5,425,491   5,536,493     5,644,939     5,644,939   5,768,609   5,877,889   6,005,126  

Network access service net (losses)/activations

                                              

Residential (A)

 (287,885 )   (63,281 ) (58,957 ) (82,090 ) (83,557 )   (335,807 )   (87,029 ) (84,540 ) (93,119 ) (71,119 )

Business

 (114,805 )   (32,478 ) (28,526 ) (28,912 ) (24,889 )   (120,910 )   (36,641 ) (24,740 ) (34,118 ) (25,411 )

Total

 (402,690 )   (95,759 ) (87,483 ) (111,002 ) (108,446 )   (456,717 )   (123,670 ) (109,280 ) (127,237 ) (96,530 )

Internet

                                              

High Speed Internet net activations (C)

 57,722     15,690   35,634   2,446   3,952     37,188     7,269   14,988   824   14,107  

High Speed Internet subscribers EOP (B) (C)

 2,184,543     2,184,543   2,168,853   2,133,219   2,130,773     2,126,821     2,126,821   2,119,552   2,113,408   2,112,584  

TV

                                              

Net subscriber activations

 122,450     36,189   46,685   25,605   13,971     69,445     19,218   15,846   16,758   17,623  

Fibe TV

 231,132     60,301   72,813   50,555   47,463     163,127     48,234   42,973   38,477   33,443  

Total subscribers EOP (B)

 2,278,433     2,278,433   2,242,244   2,195,559   2,169,954     2,155,983     2,155,983   2,136,765   2,128,433   2,111,675  

Fibe TV

 479,430     479,430   419,129   346,316   295,761     248,298     248,298   200,064   158,324   119,847  

 

(A) Residential NAS losses in Q2 2012 were increased by 7,692 lines following a review of customer account records.
(B) At the beginning of Q3 2012, our high-speed Internet and TV subscriber base were reduced by 8,844 customers and 7,514 customers respectively, to adjust for customer deactivations.
(C) Following a reconciliation of business Internet customer account records, we adjusted Q1 2012 beginning of period Internet subscriber base by 6,678 customers with related adjustments to quarterly net activations reported in 2012 and 2013.

BCE Supplementary Financial Information - Fourth Quarter 2013  Page 7

 

Bell Wireless (1) (2)

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

 Q4
2013		   Q4
2012		    

% change

     Total
2013		   Total
2012		    

% change

  

Bell Wireless

                              

Revenue

                              

Service

 1,359   1,311     3.7 %   5,362   5,086     5.4 %

Product

 134   132     1.5 %   432   438     (1.4 %)

Total external Bell Wireless revenues

 1,493   1,443     3.5 %   5,794   5,524     4.9 %

Inter-segment

 12   15     (20.0 %)   55   62     (11.3 %)

Total Bell Wireless operating revenues

 1,505   1,458     3.2 %   5,849   5,586     4.7 %

Operating costs

 (976 ) (979 )   0.3 %   (3,509 ) (3,471 )   (1.1 %)

EBITDA

 529   479     10.4 %   2,340   2,115     10.6 %

EBITDA margin (Total revenues)

 35.1 % 32.9 %   2.2  pts   40.0 % 37.9 %   2.1  pts

EBITDA margin (Service revenues)

 38.9 % 36.5 %   2.4  pts   43.6 % 41.6 %   2.0  pts
                               

Capital expenditures

 226   177     (27.7 %)   639   637     (0.3 %)

Capital intensity

 15.0 % 12.1 %   (2.9 ) pts   10.9 % 11.4 %   0.5  pts

Wireless gross activations

 462,469   495,730     (6.7 %)   1,694,055   1,802,837     (6.0 %)

Postpaid

 368,154   394,706     (6.7 %)   1,332,423   1,388,187     (4.0 %)

Wireless net activations

 93,700   105,005     (10.8 %)   217,768   260,650     (16.5 %)

Postpaid

 119,520   143,834     (16.9 %)   378,121   456,979     (17.3 %)

Wireless subscribers EOP (A)

 7,778,334   7,681,032     1.3 %   7,778,334   7,681,032     1.3 %

Postpaid (A)

 6,677,692   6,425,045     3.9 %   6,677,692   6,425,045     3.9 %

Average revenue per unit (ARPU)($/month) (6)

 57.92   56.72     2.1 %   57.25   55.82     2.6 %

Churn (%) (average per month) (7)

 1.6 % 1.7 %   0.1  pts   1.6 % 1.7 %   0.1  pts

Prepaid

 3.4 % 3.5 %   0.1  pts   3.6 % 3.6 %   0.0  pts

Postpaid

 1.3 % 1.3 %   0.0  pts   1.3 % 1.3 %   0.0  pts

Usage per subscriber (min/month)

 387   311     24.4 %   339   302     12.3 %

Cost of acquisition (COA) (8) ($/sub)

 468   480     2.5 %   421   416     (1.2 %)
                               

 

(A) Following a review of our wireless subscriber metrics, our Q4 2013 postpaid subscriber base was reduced by 107,120 customers to exclude all wireless machine-to-machine subscribers of 99,098 and an 8,022 subscriber reduction subsequent to a review of customer accounts. Additionally, our postpaid subscriber base was reduced by 18,354 subscribers to adjust for customer deactivations. Our prepaid subscriber base was increased by 5,008 customers subsequent to a review of subscriber metrics.

BCE Supplementary Financial Information - Fourth Quarter 2013  Page 8

 

Bell Wireless - Historical Trend

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

 Total
2013		     Q4 13   Q3 13   Q2 13   Q1 13     Total
2012		     Q4 12   Q3 12   Q2 12   Q1 12  

Bell Wireless

                                              

Revenue

                                              

Service

 5,362     1,359   1,372   1,328   1,303     5,086     1,311   1,307   1,252   1,216  

Product

 432     134   106   99   93     438     132   113   99   94  

Total external Bell Wireless revenues

 5,794     1,493   1,478   1,427   1,396     5,524     1,443   1,420   1,351   1,310  

Inter-segment

 55     12   15   15   13     62     15   14   17   16  

Total Bell Wireless operating revenues

 5,849     1,505   1,493   1,442   1,409     5,586     1,458   1,434   1,368   1,326  

Operating costs

 (3,509 )   (976 ) (876 ) (833 ) (824 )   (3,471 )   (979 ) (881 ) (809 ) (802 )

EBITDA

 2,340     529   617   609   585     2,115     479   553   559   524  

EBITDA margin (Total revenues)

 40.0 %   35.1 % 41.3 % 42.2 % 41.5 %   37.9 %   32.9 % 38.6 % 40.9 % 39.5 %

EBITDA margin (Service revenues)

 43.6 %   38.9 % 45.0 % 45.9 % 44.9 %   41.6 %   36.5 % 42.3 % 44.6 % 43.1 %
                                               

Capital expenditures

 639     226   157   134   122     637     177   152   172   136  

Capital intensity

 10.9 %   15.0 % 10.5 % 9.3 % 8.7 %   11.4 %   12.1 % 10.6 % 12.6 % 10.3 %

Wireless gross activations

 1,694,055     462,469   438,722   421,647   371,217     1,802,837     495,730   490,696   428,265   388,146  

Postpaid

 1,332,423     368,154   333,081   336,052   295,136     1,388,187     394,706   372,574   327,335   293,572  

Wireless net activations

 217,768     93,700   89,459   43,566   (8,957 )   260,650     105,005   129,764   47,208   (21,327 )

Postpaid

 378,121     119,520   102,714   96,390   59,497     456,979     143,834   148,502   102,067   62,576  

Wireless subscribers EOP (A) (B)

 7,778,334     7,778,334   7,805,100   7,715,641   7,672,075     7,681,032     7,681,032   7,576,027   7,453,363   7,406,155  

Postpaid (A) (B)

 6,677,692     6,677,692   6,683,646   6,580,932   6,484,542     6,425,045     6,425,045   6,281,211   6,139,809   6,037,742  

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

 57.25     57.92   58.30   56.85   55.92     55.82     56.72   57.30   55.37   53.84  

Churn (%)(average per month)

 1.6 %   1.6 % 1.5 % 1.6 % 1.7 %   1.7 %   1.7 % 1.6 % 1.7 % 1.8 %

Prepaid

 3.6 %   3.4 % 3.3 % 3.7 % 3.8 %   3.6 %   3.5 % 3.3 % 3.7 % 3.9 %

Postpaid

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

Usage per subscriber (min/month)

 339     387   346   323   298     302     311   307   303   285  

Cost of acquisition (COA)($/sub)

 421     468   403   402   404     416     480   397   381   399  

 

(A) At the beginning of Q3 2012, our wireless postpaid subscriber base was reduced by 7,100 customers to adjust for customer deactivations.
(B) Following a review of our wireless subscriber metrics, our Q4 2013 postpaid subscriber base was reduced by 107,120 customers to exclude all wireless machine-to-machine subscribers of 99,098 and an 8,022 subscriber reduction subsequent to a review of customer accounts. Additionally, our postpaid subscriber base was reduced by 18,354 subscribers to adjust for customer deactivations. Our prepaid subscriber base was increased by 5,008 customers subsequent to a review of subscriber metrics.

BCE Supplementary Financial Information - Fourth Quarter 2013  Page 9

 

BCE (1)
Net debt and other information (2)

BCE - Net debt and preferred shares

            

At December 31, 2013

     BCE      

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

            

 

    Bell      

 

Bell   Aliant   BCE  

Debt due within one year

 2,286   285   2,571  

Long-term debt

 13,765   2,576   16,341  

Preferred shares - BCE (A)

 1,698   -   1,698  

Cash and cash equivalents

 (319 ) (16 ) (335 )

Net debt (3)

 17,430   2,845   20,275  

 

Bell - Net debt and preferred shares

                    

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

December 31   September 30   June 30   March 31   Dec. 31  

 

2013   2013   2013   2013   2012  

Debt due within one year

 2,286   2,671   3,180   2,479   1,681  

Long-term debt

 13,765   13,756   11,793   11,810   11,304  

Preferred shares - BCE (A)

 1,698   1,698   1,698   1,698   1,698  

Cash and cash equivalents

 (319 ) (589 ) (2,208 ) (1,145 ) (111 )

Net Debt

 17,430   17,536   14,463   14,842   14,572  
                     

Net Debt / Adjusted EBITDA (B)

 2.49   2.54   2.11   2.18   2.15  

Adjusted EBITDA (B)/Net interest, excluding interest on post-employment benefit obligations and including 50% of preferred dividends

 8.40   8.46   8.57   8.71   8.82  

 

Bell Media Inc. - Proportionate Information

                                          

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

Total
2013		   Q4 2013   Q3 2013   Q2 2013   Q1 2013     Total
2012		   Q4 2012   Q3 2012   Q2 2012   Q1 2012  

Proportionate Net Debt

103

 

103

 

143

 

202

 

206

 

 

214

 

214

 

198

 

211

 

188

 

Proportionate EBITDA

 593   209   172   134   78     462   146   124   128   64  

 

Cash Flow Information

                                    

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

Q4
2013		   Q4
2012		   $ change    

% change

     Total
2013		   Total
2012		  

$ change

 

% change

  

Free Cash Flow (FCF) (3)

                                    

Cash from operating activities, excluding acquisition costs paid

 1,649   645   1,004     n.m.     5,521   4,621   900   19.5 %

Capital expenditures

 (992 ) (779 ) (213 )   (27.3 %)   (3,001 ) (2,923 ) (78 ) (2.7 %)

Dividends paid on preferred shares

 (31 ) (39 ) 8     20.5 %   (127 ) (133 ) 6   4.5 %

Dividends paid by subsidiaries to non-controlling interest

 -   (20 ) 20     100.0 %   (13 ) (78 ) 65   83.3 %

Voluntary defined benefit pension plan contribution

 -   750   (750 )   (100.0 %)   -   750   (750)   (100.0 %)

Bell Aliant distributions to BCE

 48   48   -     0.0 %   191   191   -   0.0 %

FCF

 674   605   69     11.4 %   2,571   2,428   143   5.9 %

 

                                    

 

Cash Flow Information - Historical Trend

                                            

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

 Total
2013		   Q4
2013		   Q3
2013		   Q2
2013		   Q1
2013		     Total
2012		     Q4
2012		   Q3
2012		   Q2
2012		   Q1
2012		  

Free Cash Flow (FCF)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash from operating activities, excluding acquisition costs paid

 5,521   1,649   1,479   1,567   826     4,621     645   1,373   1,594   1,009  

Capital expenditures

 (3,001 ) (992 ) (742 ) (673 ) (594 )   (2,923 )   (779 ) (688 ) (776 ) (680 )

Dividends paid on preferred shares

 (127 ) (31 ) (38 ) (32 ) (26 )   (133 )   (39 ) (27 ) (34 ) (33 )

Dividends paid by subsidiaries to non-controlling interest

 (13 ) -   -   (6 ) (7 )   (78 )   (20 ) (20 ) (25 ) (13 )

Voluntary defined benefit pension plan contribution

 -   -   -   -   -     750     750   -   -   -  

Bell Aliant distributions to BCE

 191   48   48   47   48     191     48   48   47   48  

FCF

 2,571   674   747   903   247     2,428     605   686   806   331  
                                             

 

(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 trailing 12 months data.
n.m. : not meaningful

BCE Supplementary Financial Information - Fourth Quarter 2013  Page 10

 

BCE (1)
Consolidated Statements of Financial Position (2)

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

 December 31
2013		     September 30
2013		     June 30
2013		     March 31
2013		     December 31
2012		  

ASSETS

                            

Current assets

                            

Cash

 220     169     123     116     119  

Cash equivalents

 115     434     2,085     1,039     10  

Trade and other receivables

 3,007     2,795     2,752     2,794     2,910  

Inventory

 383     424     421     390     392  

Prepaid expenses

 415     440     485     468     301  

Assets held for sale

 719     654     -     5     5  

Other current assets

 211     174     165     148     176  

Total current assets

 5,070     5,090     6,031     4,960     3,913  

Non-current assets

                            

Property, plant and equipment

 20,743     20,448     20,095     19,951     20,007  

Intangible assets

 9,552     9,522     8,135     8,197     8,183  

Deferred tax assets

 165     191     236     285     244  

Investments in associates and joint ventures

 775     794     808     812     800  

Other non-current assets

 698     726     697     784     637  

Goodwill

 8,381     8,436     7,186     7,189     7,185  

Total non-current assets

 40,314     40,117     37,157     37,218     37,056  

Total assets

 45,384     45,207     43,188     42,178     40,969  

LIABILITIES

                            

Current liabilities

                            

Trade payables and other liabilities

 4,339     3,888     3,701     3,576     3,916  

Interest payable

 147     150     160     146     128  

Dividends payable

 466     466     472     472     453  

Current tax liabilities

 367     417     358     170     113  

Debt due within one year

 2,571     2,902     3,416     3,131     2,136  

Total current liabilities

 7,890     7,823     8,107     7,495     6,746  

Non-current liabilities

                            

Long-term debt

 16,341     16,339     14,374     13,998     13,886  

Deferred tax liabilities

 1,318     1,315     958     793     761  

Post-employment benefit obligation

 2,127     2,104     2,680     3,356     3,422  

Other non-current liabilities

 1,458     1,432     1,241     1,380     1,429  

Total non-current liabilities

 21,244     21,190     19,253     19,527     19,498  

Total liabilities

 29,134     29,013     27,360     27,022     26,244  

EQUITY

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity attributable to BCE shareholders

                            

Preferred shares

 3,395     3,395     3,395     3,395     3,395  

Common shares

 13,629     13,629     13,629     13,629     13,611  

Contributed surplus

 2,615     2,606     2,594     2,581     2,557  

Accumulated other comprehensive income (loss)

 14     10     16     (4 )   (6 )

Deficit

 (4,642 )   (4,642 )   (4,959 )   (5,534 )   (5,682 )

Equity attributable to BCE shareholders

 15,011     14,998     14,675     14,067     13,875  

Non-controlling interest

 1,239     1,196     1,153     1,089     850  

Total equity

 16,250     16,194     15,828     15,156     14,725  

Total liabilities and equity

 45,384     45,207     43,188     42,178     40,969  

Number of common shares outstanding

775.9

 

 

775.9

 

 

775.9

 

 

775.9

 

 

775.4

 

BCE Supplementary Financial Information - Fourth Quarter 2013  Page 11

 

BCE (1)
Consolidated Cash Flow Data (2)

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

   Q4
2013		     Q4
2012		       $ change       Total
2013		     Total
2012		       $ change  

Net earnings

   593     765       (172 )     2,388     2,876       (488 )

Adjustments to reconcile net earnings to cash flows from operating activities

                                          

Severance, acquisition and other costs

   48     69       (21 )     406     133       273  

Depreciation and amortization

   855     868       (13 )     3,380     3,392       (12 )

Post-employment benefit plans cost

   109     92       17       442     356       86  

Net interest expense

   239     222       17       924     858       66  

Losses (gains) on investments

   12     (249 )     261       7     (256 )     263  

Income taxes

   226     181       45       828     760       68  

Contributions to post-employment benefit plans

   (83 )   (936 )     853       (341 )   (1,192 )     851  

Payments under other post-employment benefit plans

   (18 )   (19 )     1       (73 )   (73 )     -  

Severance and other costs paid

   (65 )   (41 )     (24 )     (203 )   (231 )     28  

Acquisition costs paid

   (30 )   (5 )     (25 )     (80 )   (101 )     21  

Interest paid

   (231 )   (236 )     5       (879 )   (835 )     (44 )

Income taxes paid (net of refunds)

   (232 )   (91 )     (141 )     (470 )   (280 )     (190 )

Net change in operating assets and liabilities

   415     243       172       147     153       (6 )

Cash flows from operating activities

   1,838     863       975       6,476     5,560       916  

Bell Aliant dividends paid to BCE

   48     48       -       191     191       -  

Capital expenditures

   (1,139 )   (914 )     (225 )     (3,571 )   (3,515 )     (56 )

Cash dividends paid on preferred shares

   (31 )   (39 )     8       (127 )   (133 )     6  

Cash dividends paid by subsidiaries to non-controlling interest

   (68 )   (85 )     17       (283 )   (340 )     57  

Acquisition costs paid

   30     5       25       80     101       (21 )

Voluntary defined benefit pension plan contribution

   -     750       (750 )     -     750       (750 )

Bell Aliant Free Cash Flow

   (4 )   (23 )     19       (195 )   (186 )     (9 )

Free Cash Flow (3)

   674     605       69       2,571     2,428       143  

Bell Aliant free cash flow, excluding dividends paid

   (44 )   (25 )     (19 )     4     (5 )     9  

Business acquisitions

   (1 )   (8 )     7       (2,850 )   (13 )     (2,837 )

Acquisition costs paid

   (30 )   (5 )     (25 )     (80 )   (101 )     21  

Voluntary defined benefit pension plan contribution

   -     (750 )     750       -     (750 )     750  

Business dispositions

   -     -       -       1     -       1  

Increase in investments

   (1 )   (192 )     191       (3 )   (593 )     590  

Decrease in investments

   5     1       4       10     10       -  

Other investing activities

   -     4       (4 )     12     10       2  

Increase (decrease) in notes payable and bank advances

   (240 )   483       (723 )     272     377       (105 )

Increase (reduction) in securitized trade receivables

   -     -       -       (14 )   (15 )     1  

Issue of long-term debt

   15     22       (7 )     4,438     1,055       3,383  

Repayment of long-term debt

   (178 )   (112 )     (66 )     (2,495 )   (946 )     (1,549 )

Premiums on early redemption of debt

   -     -       -       (55 )   -       (55 )

Cash dividends paid on common shares

   (452 )   (440 )     (12 )     (1,795 )   (1,683 )     (112 )

Issue of common shares

   -     9       (9 )     13     39       (26 )

Repurchase of common shares

   -     -       -       -     (107 )     107  

Issue of preferred shares

   -     -       -       -     280       (280 )

Issue of equity securities by subsidiaries to non-controlling interest

   -     -       -       230     11       219  

Other financing activities

   (16 )   (14 )     (2 )     (53 )   (45 )     (8 )

 

  (942 )   (1,027 )     85       (2,365 )   (2,476 )     111  

Net (decrease) increase in cash and cash equivalents

   (268 )   (422 )     154       206     (48 )     254  

Cash and cash equivalents at beginning of period

   603     551       52       129     177       (48 )

Cash and cash equivalents at end of period

   335     129       206       335     129       206  
                                           

Other information

                                          

Cash flow per share (9)

 $ 0.90   $ (0.07 )   $ 0.97     $ 3.74   $ 2.64     $ 1.10  

Annualized cash flow yield (10)

   7.2 %   7.3 %     (0.1 ) pts     7.2 %   7.3 %     (0.1 ) pts

 

                                          

BCE Supplementary Financial Information - Fourth Quarter 2013  Page 12

 

BCE
Consolidated Cash Flow Data - Historical Trend

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

   Total
2013		       Q4 13     Q3 13     Q2 13     Q1 13       Total
2012		       Q4 12     Q3 12     Q2 12     Q1 12  

Net earnings

   2,388       593     452     671     672       2,876       765     644     836     631  

Adjustments to reconcile net earnings to cash flows from operating activities

                                                                  

Severance, acquisition and other costs

   406       48     297     28     33       133       69     25     20     19  

Depreciation and amortization

   3,380       855     845     842     838       3,392       868     853     844     827  

Post-employment benefit plans cost

   442       109     112     107     114       356       92     70     95     99  

Net interest expense

   924       239     240     225     220       858       222     223     206     207  

Losses (gains) on investments

   7       12     (2 )   (1 )   (2 )     (256 )     (249 )   1     -     (8 )

Income taxes

   828       226     165     196     241       760       181     231     157     191  

Contributions to post-employment benefit plans

   (341 )     (83 )   (84 )   (76 )   (98 )     (1,192 )     (936 )   (81 )   (89 )   (86 )

Payments under other post-employment benefit plans

   (73 )     (18 )   (19 )   (18 )   (18 )     (73 )     (19 )   (18 )   (18 )   (18 )

Severance and other costs paid

   (203 )     (65 )   (44 )   (45 )   (49 )     (231 )     (41 )   (43 )   (49 )   (98 )

Acquisition costs paid

   (80 )     (30 )   (32 )   (8 )   (10 )     (101 )     (5 )   (39 )   (32 )   (25 )

Interest paid

   (879 )     (231 )   (246 )   (206 )   (196 )     (835 )     (236 )   (222 )   (197 )   (180 )

Income taxes paid (net of refunds)

   (470 )     (232 )   (53 )   (37 )   (148 )     (280 )     (91 )   (38 )   (47 )   (104 )

Net change in operating assets and liabilities

   147       415     99     190     (557 )     153       243     (15 )   178     (253 )

Cash flows from operating activities

   6,476       1,838     1,730     1,868     1,040       5,560       863     1,591     1,904     1,202  

Bell Aliant dividends paid to BCE

   191       48     48     47     48       191       48     48     47     48  

Capital expenditures

   (3,571 )     (1,139 )   (880 )   (830 )   (722 )     (3,515 )     (914 )   (832 )   (952 )   (817 )

Cash dividends paid on preferred shares

   (127 )     (31 )   (38 )   (32 )   (26 )     (133 )     (39 )   (27 )   (34 )   (33 )

Cash dividends paid by subsidiaries to non-controlling interest

   (283 )     (68 )   (68 )   (74 )   (73 )     (340 )     (85 )   (85 )   (91 )   (79 )

Acquisition costs paid

   80       30     32     8     10       101       5     39     32     25  

Voluntary defined benefit pension plan contribution

   -       -     -     -     -       750       750     -     -     -  

Bell Aliant Free Cash Flow

   (195 )     (4 )   (77 )   (84 )   (30 )     (186 )     (23 )   (48 )   (100 )   (15 )

Free Cash Flow

   2,571       674     747     903     247       2,428       605     686     806     331  

Bell Aliant free cash flow, excluding dividends paid

   4       (44 )   29     37     (18 )     (5 )     (25 )   -     53     (33 )

Business acquisitions

   (2,850 )     (1 )   (2,844 )   -     (5 )     (13 )     (8 )   (3 )   -     (2 )

Acquisition costs paid

   (80 )     (30 )   (32 )   (8 )   (10 )     (101 )     (5 )   (39 )   (32 )   (25 )

Voluntary defined benefit pension plan contribution

   -       -     -     -     -       (750 )     (750 )   -     -     -  

Business dispositions

   1       -     -     1     -       -       -     -     -     -  

Increase in investments

   (3 )     (1 )   (1 )   (1 )   -       (593 )     (192 )   (399 )   (1 )   (1 )

Decrease in investments

   10       5     -     3     2       10       1     -     1     8  

Other investing activities

   12       -     (2 )   14     -       10       4     1     4     1  

Increase (decrease) in notes payable and bank advances

   272       (240 )   495     (321 )   338       377       483     15     (387 )   266  

(Reduction) increase in securitized trade receivables

   (14 )     -     -     -     (14 )     (15 )     -     10     (13 )   (12 )

Issue of long-term debt

   4,438       15     2,008     1,408     1,007       1,055       22     11     1,011     11  

Repayment of long-term debt

   (2,495 )     (178 )   (1,515 )   (513 )   (289 )     (946 )     (112 )   (116 )   (633 )   (85 )

Premiums on early redemption of debt

   (55 )     -     (28 )   (10 )   (17 )     -       -     -     -     -  

Cash dividends paid on common shares

   (1,795 )     (452 )   (451 )   (452 )   (440 )     (1,683 )     (440 )   (420 )   (420 )   (403 )

Issue of common shares

   13       -     -     -     13       39       9     4     8     18  

Repurchase of common shares

   -       -     -     -     -       (107 )     -     -     -     (107 )

Issue of preferred shares

   -       -     -     -     -       280       -     -     -     280  

Issue of equity securities by subsidiaries to non-controlling interest

   230       -     -     -     230       11       -     9     1     1  

Other financing activities

   (53 )     (16 )   (11 )   (8 )   (18 )     (45 )     (14 )   (1 )   (6 )   (24 )

 

  (2,365 )     (942 )   (2,352 )   150     779       (2,476 )     (1,027 )   (928 )   (414 )   (107 )

Net increase (decrease) in cash and cash equivalents

   206       (268 )   (1,605 )   1,053     1,026       (48 )     (422 )   (242 )   392     224  

Cash and cash equivalents at beginning of period

   129       603     2,208     1,155     129       177       551     793     401     177  

Cash and cash equivalents at end of period

   335       335     603     2,208     1,155       129       129     551     793     401  
                                                                   

Other information

                                                                  

Cash flow per share

 $ 3.74     $ 0.90   $ 1.09   $ 1.34   $ 0.41     $ 2.64     $ (0.07

)

$ 0.98   $ 1.23   $ 0.50  

Annualized cash flow yield

   7.2 %     7.2 %   7.3 %   7.3 %   6.4 %     7.3 %     7.3 %   7.1 %   8.3 %   7.6 %

BCE Supplementary Financial Information - Fourth Quarter 2013  Page 13

 

Accompanying Notes

  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.
 
(1) Throughout this report, BCE means BCE Inc., its subsidiaries, joint arrangements 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 and associates.
 
(2) On January 1, 2013, we adopted the required amendments for IAS 19 – Employee Benefits and IFRS 11 – Joint Arrangements. As a result, we have reclassified some of the figures for the comparative period to make them consistent with the current period’s presentation. For further details see note 2 of the Q3 2013 financial statements.

On July 5, 2013, BCE acquired 100% of the issued and outstanding shares of Astral. Astral is a media company that operates specialty and pay TV channels, radio stations, digital media properties and out-of-home advertising platforms.
 
(3) Non-GAAP Financial Measures

EBITDA

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

We define EBITDA as operating revenues less operating costs (including post-employment benefit plans service cost). 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 issuers.

We define Adjusted net earnings as net earnings attributable to common shareholders before severance, acquisition and other costs, net (gains) losses on investments, and premiums on early redemption of debt. We define Adjusted EPS as Adjusted net earnings per BCE Inc. 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 (gains) losses on investments, and premiums on early redemption of debt, 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 EPS.

BCE Supplementary Financial Information - Fourth Quarter 2013  Page 14

 

Accompanying Notes

  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 acquisition costs paid and voluntary pension funding, plus dividends 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 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 flows from operating activities.

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. 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.
 
(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.

BCE Supplementary Financial Information - Fourth Quarter 2013  Page 15

 

Accompanying Notes

(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 discounts, marketing and distribution costs.
 
(9) Cash flow per share is calculated as follows:

Cash flow from operating activities 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 Supplementary Financial Information - Fourth Quarter 2013  Page 16