6-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 6-K

REPORT OF FOREIGN PRIVATE ISSUER

Pursuant to Rule 13a-16 or 15d-16 under

the Securities Exchange Act of 1934

For the month of: August 2020                         Commission File Number: 1-8481

BCE Inc.

(Translation of Registrant’s name into English)

1, Carrefour Alexander-Graham-Bell, Verdun, Québec, Canada H3E 3B3,

(514) 870-8777

(Address of principal executive offices)

Indicate by check mark whether the registrant files or will file annual reports under cover of Form 20-F or Form 40-F.

Form 20-F                                 Form 40-F         X        

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(1): _____

Indicate by check mark if the registrant is submitting the Form 6-K in paper as permitted by Regulation S-T Rule 101(b)(7): _____

Indicate by check mark whether by furnishing the information contained in this Form, the registrant is also thereby furnishing the information to the Commission pursuant to Rule 12g3-2(b) under the Securities Exchange Act of 1934.

Yes                                     No         X        

If “Yes” is marked, indicate below the file number assigned to the registrant in connection with Rule 12g3-2(b): 82- _____.

Only the BCE Inc. Management’s Discussion and Analysis for the quarter ended June 30, 2020 and the BCE Inc. unaudited consolidated interim financial statements for the quarter ended June 30, 2020, included in the BCE Inc. 2020 Second Quarter Shareholder Report furnished with this Form 6-K as Exhibit 99.1, the Bell Canada Unaudited Selected Summary Financial Information for the quarter ended June 30, 2020 furnished with this Form 6-K as Exhibit 99.5, and the Exhibit to 2020 Second Quarter Financial Statements – Earnings Coverage furnished with this Form 6-K as Exhibit 99.6 are incorporated by reference in the registration statements filed by BCE Inc. with the Securities and Exchange Commission on Form F-3 (Registration Statement No. 333-12130), Form S-8 (Registration Statement No. 333-12780), Form S-8 (Registration Statement No. 333-12802) and Form F-10 (Registration Statement No. 333-231698). Except for the foregoing, no other document or portion of document furnished with this Form 6-K is incorporated by reference in BCE Inc.’s registration statements. Notwithstanding any reference to BCE Inc.’s Web site on the World Wide Web in the documents attached hereto, the information contained in BCE Inc.’s site or any other site on the World Wide Web referred to in BCE Inc.’s site is not a part of this Form 6-K and, therefore, is not furnished to the Securities and Exchange Commission.

Page 1

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the Registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

BCE Inc.

(signed) Glen LeBlanc

Glen LeBlanc
Executive Vice-President and Chief Financial Officer

August 6, 2020

Page 2

EXHIBIT INDEX

99.1 BCE Inc. 2020 Second Quarter Shareholder Report

99.2 Supplementary Financial Information – Second Quarter 2020

99.3 CEO/CFO Certifications

99.4 News Release

99.5 Bell Canada Unaudited Selected Summary Financial Information

99.6 Exhibit to 2020 Second Quarter Financial Statements – Earnings Coverage

101 XBRL Instance Document

Page 3

EX-99.1

Exhibit 99.1

Building Better Q2 2020 Experiences Second Quarter Shareholder Report August 5, 2020

Table of contents

Table of contents

Management’s discussion and analysis			1
1	Overview		2
	1.1	Financial highlights	3
	1.2	Key corporate and business developments	5
	1.3	Assumptions	6
2	Consolidated financial analysis		7
	2.1	BCE consolidated income statements	7
	2.2	Customer connections	8
	2.3	Operating revenues	9
	2.4	Operating costs	10
	2.5	Net earnings	11
	2.6	Adjusted EBITDA	11
	2.7	Severance, acquisition and other costs	12
	2.8	Depreciation and amortization	12
	2.9	Finance costs	12
	2.10	Impairment of assets	12
	2.11	Other (expense) income	13
	2.12	Income taxes	13
	2.13	Net earnings attributable to common shareholders and EPS	13
3	Business segment analysis		14
	3.1	Bell Wireless	14
	3.2	Bell Wireline	18
	3.3	Bell Media	22
4	Financial and capital management		24
	4.1	Net debt	24
	4.2	Outstanding share data	24
	4.3	Cash flows	25
	4.4	Post-employment benefit plans	26
	4.5	Financial risk management	27
	4.6	Credit ratings	29
	4.7	Liquidity	29
5	Quarterly financial information		30
6	Regulatory Environment		31
7	Business risks		32
8	Accounting policies, financial measures and controls		36
	8.1	Our accounting policies	36
	8.2	Non-GAAP financial measures and key performance indicators (KPIs)	36
	8.3	Controls and procedures	39
Consolidated financial statements			40
	Consolidated income statements		40
	Consolidated statements of comprehensive (loss) income		41
	Consolidated statements of financial position		42
	Consolidated statements of changes in equity		43
	Consolidated statements of cash flows		44
Notes to consolidated financial statements			45

Note 1	Corporate Information	45
Note 2	Basis of presentation and significant accounting policies	45
Note 3	Discontinued operations	46
Note 4	Segmented information	47
Note 5	Operating costs	49
Note 6	Severance, acquisition and other costs	49
Note 7	Impairment of assets	50
Note 8	Other (expense) income	50
Note 9	Earnings per share	51
Note 10	Trade and other receivables	51
Note 11	Other non-current assets	51
Note 12	Debt	51
Note 13	Post-employment benefit plans	52
Note 14	Financial assets and liabilities	53
Note 15	Share-based payments	55
Note 16	COVID-19	56

MD&A

Management’s discussion and analysis

In this management’s discussion and analysis (MD&A), we, us, our, BCE and the company mean, as the context may require, either BCE Inc. or, collectively, BCE Inc., Bell Canada, their subsidiaries, joint arrangements and associates. Bell means, as the context may require, either Bell Canada or, collectively, Bell Canada, its subsidiaries, joint arrangements and associates.

All amounts in this MD&A are in millions of Canadian dollars, except where noted. Please refer to section 8.2, Non-GAAP financial measures and key performance indicators (KPIs) on pages 36 to 39 for a list of defined non-GAAP financial measures and KPIs.

Please refer to BCE’s unaudited consolidated financial statements for the second quarter of 2020 (Q2 2020 Financial Statements) when reading this MD&A. We also encourage you to read BCE’s MD&A for the year ended December 31, 2019 dated March 5, 2020 (BCE 2019 Annual MD&A) as updated in BCE’s MD&A for the first quarter of 2020 dated May 6, 2020 (BCE 2020 First Quarter MD&A). In preparing this MD&A, we have taken into account information available to us up to August 5, 2020, the date of this MD&A, unless otherwise stated.

You will find additional information relating to BCE, including BCE’s annual information form for the year ended December 31, 2019 dated March 5, 2020 (BCE 2019 AIF) and recent financial reports, including the BCE 2019 Annual MD&A and the BCE 2020 First Quarter MD&A, on BCE’s website at BCE.ca, on SEDAR at sedar.com and on EDGAR at sec.gov.

Documents and other information contained in BCE’s website or in any other site referred to in BCE’s website or in this MD&A are not part of this MD&A and are not incorporated by reference herein.

This MD&A comments on our business operations, performance, financial position and other matters for the three months (Q2) and six months (YTD) ended June 30, 2020 and 2019.

CAUTION REGARDING FORWARD-LOOKING STATEMENTS

This MD&A, and in particular, but without limitation, the introduction to section 1, Overview, section 1.2, Key corporate and business developments, section 1.3, Assumptions, section 3.1, Bell Wireless – Key business developments, section 3.2, Bell Wireline – Key business developments, section 3.3, Bell Media – Key business developments and section 4.7, Liquidity, contain forward-looking statements. These forward-looking statements include, without limitation, statements relating to the potential impacts on our business, financial condition, liquidity and financial results of the COVID-19 pandemic, the expected continued payment by BCE of its common share dividend for the foreseeable future, our network deployment and capital investment plans, the sources of liquidity we expect to use to meet our anticipated 2020 cash requirements, the expected timing and completion of the proposed sale of 25 data centres at 13 sites to Equinix, Inc. (Equinix), BCE’s business outlook, objectives, plans and strategic priorities, and other statements that do not refer to historical facts. A statement we make is forward-looking when it uses what we know and expect today to make a statement about the future. Forward-looking statements are typically identified by the words assumption, goal, guidance, objective, outlook, project, strategy, target, and other similar expressions or future or conditional verbs such as aim, anticipate, believe, could, expect, intend, may, plan, seek, should, strive and will. All such forward-looking statements are made pursuant to the safe harbour provisions of applicable Canadian securities laws and of the United States (U.S.) Private Securities Litigation Reform Act of 1995.

Unless otherwise indicated by us, forward-looking statements in this MD&A describe our expectations as at August 5, 2020 and, accordingly, are subject to change after that date. Except as may be required by applicable securities laws, we do not undertake any obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.

Forward-looking statements, by their very nature, are subject to inherent risks and uncertainties and are based on several assumptions, both general and specific, which give rise to the possibility that actual results or events could differ materially from our expectations expressed in, or implied by, such forward-looking statements and that our business outlook, objectives, plans and strategic priorities may not be achieved. These statements are not guarantees of future performance or events, and we caution you against relying on any of these forward-looking statements. Forward-looking statements are presented in this MD&A for the purpose of assisting investors and others in understanding our objectives, strategic priorities and business outlook as well as our anticipated operating environment. Readers are cautioned, however, that such information may not be appropriate for other purposes.

We have made certain assumptions in preparing the forward-looking statements contained in this MD&A and, in particular, but without limitation, the forward-looking statements contained in the previously mentioned sections of this MD&A. These assumptions include, without limitation, the assumptions described in section 1.3, Assumptions, which section is incorporated by reference in this cautionary statement. Subject to various factors including, without limitation, the future impacts of the COVID-19 pandemic, which we cannot predict, we believe that our assumptions were reasonable at August 5, 2020. If our assumptions turn out to be inaccurate, our actual results could be materially different from what we expect.

Important risk factors including, without limitation, pandemics, epidemics and other public health risks, including the COVID-19 pandemic, economic, financial, competitive, regulatory, security, technological, operational and other risks that could cause actual results or events to differ materially from those expressed in, or implied by, the previously-mentioned forward looking statements and other forward-looking statements contained in this MD&A, include, but are not limited to, the risks described or referred to in section 7, Business risks, which section is incorporated by reference in this cautionary statement.

We caution readers that the risks described in the previously mentioned section and in other sections of this MD&A are not the only ones that could affect us. Additional risks and uncertainties not currently known to us or that we currently deem to be immaterial may also have a material adverse effect on our business, financial condition, liquidity, financial results or reputation. Except as otherwise indicated by us, forward-looking statements do not reflect the potential impact of any special items or of any dispositions, monetizations, mergers, acquisitions, other business combinations or other transactions that may be announced or that may occur after August 5, 2020. The financial impact of these transactions and special items can be complex and depends on facts particular to each of them. We therefore cannot describe the expected impact in a meaningful way, or in the same way we present known risks affecting our business.

BCE Inc. 2020 Second Quarter Shareholder Report         1

1 MD&A Overview

1    Overview

The COVID-19 pandemic has resulted in governments and businesses worldwide adopting emergency measures to combat the spread of the coronavirus while seeking to maintain essential services. These measures have significantly disrupted retail and commercial activities in most sectors of the economy and resulted in extreme volatility in financial markets. This has resulted, starting in the latter part of the first quarter and continuing into the second quarter, in a sharp economic downturn marked by high levels of unemployment, as most businesses reduced or ceased business operations, and reduced consumer spending.

We have confronted the COVID-19 pandemic by keeping Canadians connected and informed; prioritizing the health and safety of the public and our team; and supporting our customers and communities with special initiatives. Despite unprecedented demand across our networks due to the pandemic, we have maintained service availability at 99.99+% throughout the crisis; introduced innovative tactics focused on customer experience, including equipping 12,000 call centre agents to work from home, retraining thousands of team members as service agents and introducing innovative remote installation practices; and launched enhanced online and appointment-based sales options. As part of its support for Canadian communities during the pandemic, Bell Let’s Talk also announced new funding for frontline mental health providers including Kids Help Phone, Canadian Red Cross, Canadian Mental Health Association, Revivre and Bell True Patriot Love Fund.

Certain of the emergency measures have gradually started being eased across Canada in the latter part of the second quarter which has allowed many businesses to resume some level of, or increase, activities, often with certain operational adjustments, amid the uncertainty caused by the COVID-19 pandemic. With appropriate health and safety precautions, Bell call centres resumed operations and are now achieving pre-COVID-19 service levels, while 99% of Bell, The Source (Bell) Electronics Inc. (The Source) and authorized dealer stores and kiosks have reopened nationwide.

However, given that emergency measures remained in place for most or all, as the case may be, of the second quarter, the impact of such measures on the Canadian economy and business and consumer activity was significantly more prolonged and severe in the second quarter than the first quarter. Accordingly, our second quarter financial results were more significantly impacted than our first quarter financial results. In the second quarter, all of our segments were affected by the COVID-19 pandemic. In particular, the pandemic had the following principal consequences on our business and financial results:

• Lower advertising revenues from our Bell Media segment due to customer cancellations attributable to the temporary shutdown of businesses and the cancellation and/or postponement of sporting events

• Lower wireless product sales driven by reduced market activity, less promotional offers and the temporary closure of our retail distribution channels

• A reduction in Bell Wireless and Bell Wireline subscriber activity due to reduced market activity, fewer promotions and the temporary closure of our retail distribution channels resulting in lower activations, moderated by lower deactivations

• Higher bad debt expense and customer accommodations, including delayed implementation of price increases and revenue credits, due to the financial difficulty experienced by customers

• Decreased service revenues in our Bell Wireless segment primarily due to lower outbound roaming revenues resulting from reduced customer travel and the waiving of roaming charges during the month of April 2020 and lower data overages

• Higher COVID-19 related expenses primarily in our Bell Wireline segment, including greater donations, employee redeployment costs, purchase of personal protective equipment (PPE) and incremental building cleaning costs and supplies

• Higher investment in wireless and wireline network capacity enhancements to support increased demand

• Lower and delayed customer spending in our small and large business markets, respectively, due to the temporary shutdown of businesses and difficulties accessing client premises

• Higher conferencing revenues from business customers due to increased demand for remote work capabilities

Due to uncertainties relating to the severity and duration of the COVID-19 pandemic, including possible resurgences in the number of COVID-19 cases, and various potential outcomes, we are not able at this time to estimate the impacts of the COVID-19 pandemic on our business or future financial results and related assumptions. Our business and financial results could continue to be significantly and negatively impacted in future periods. The extent to which the COVID-19 pandemic will continue to adversely impact us will depend on future developments that are unknown and cannot be predicted, as well as new information which may emerge concerning the severity, duration and possible resurgences of the COVID-19 pandemic and the actions required to contain the coronavirus or remedy its impacts, among others. Any of the developments and risks referred to in this MD&A, including, in particular, in Section 7, Business risks – Update to the description of business risks, of this MD&A, and others arising from the COVID-19 pandemic, could have a material adverse effect on our business, financial condition, liquidity, financial results or reputation.

Given this unprecedented and highly uncertain environment, BCE withdrew on May 6, 2020 all of its 2020 financial guidance that it announced on February 6, 2020, as well as all of its business outlooks and assumptions set out in the BCE 2019 Annual MD&A, its February 6, 2020 earnings news release and the BCE 2019 AIF including, without limitation, those included in section 1.4, Capital markets strategy, in section 2, Strategic imperatives, in section 3.2, Business outlook and assumptions and under the headings Competitive landscape and industry trends and Business outlook and assumptions included in section 5, Business segment analysis, of the BCE 2019 Annual MD&A.

However, BCE’s underlying business fundamentals remain strong. Our strong liquidity position, underpinned by a healthy balance sheet, substantial free cash flow generation and access to the debt and bank capital markets, is expected to provide significant financial flexibility to execute on our planned capital expenditures for 2020 and to sustain BCE’s common share dividend payments for the foreseeable future.

2             BCE Inc. 2020 Second Quarter Shareholder Report

1 MD&A Overview

1.1    Financial highlights

On June 1, 2020, BCE announced that it had entered into an agreement to sell substantially all of its data centre operations in an all-cash transaction valued at $1.04 billion. The transaction is expected to close in the second half of 2020, subject to customary closing conditions. As a result, we have reclassified amounts related to the announced sale for the previous periods to discontinued operations in our consolidated income statements and consolidated statements of cash flows to make them consistent with the presentation for the current period. We have also reclassified the assets and liabilities of the data centre operations to be sold as held for sale in our consolidated statements of financial position at June 30, 2020, measured at their carrying amount, which is lower than the estimated fair value less costs to sell. Property, plant and equipment and intangible assets included in assets held for sale are no longer depreciated or amortized effective June 1, 2020.

In Q2 2020, we updated our definitions of adjusted net earnings ⁽¹⁾, adjusted EPS ⁽¹⁾ and free cash flow ⁽¹⁾ to exclude the impacts of discontinued operations as they may affect the comparability of our financial results and could potentially distort the analysis of trends in business performance. As a result of this change, prior periods have been restated for comparative purposes. See section 8.2, Non-GAAP financial measures and key performance indicators (KPIs), for more details.

To align with changes in how we manage our business and assess performance, the operating results of our public safety land radio network business are now included within our Bell Wireline segment effective January 1, 2020, with prior periods restated for comparative purposes. Previously, these results were included within our Bell Wireless segment. Our public safety land radio network business, which builds and manages land mobile radio networks primarily for the government sector, is now managed by our Bell Business Markets team in order to better serve our customers with end-to-end communications solutions.

BCE Q2 2020 SELECTED QUARTERLY INFORMATION

Operating revenues	Net earnings	Adjusted EBITDA (1)
$5,354	$294	$2,331
million	million	million
(9.1%) vs. Q2 2019	(64.0%) vs. Q2 2019	(9.4%) vs. Q2 2019

Net earnings attributable	Adjusted net earnings	Cash flows from	Free cash flow
to common shareholders		operating activities
$237	$573	$2,562	$1,611
million	million	million	million
(68.9%) vs. Q2 2019	(31.8%) vs. Q2 2019	+22.4% vs. Q2 2019	+49.7% vs. Q2 2019
BCE CUSTOMER CONNECTIONS
Wireless	Retail high-speed Internet	Retail television (TV)	Retail residential network
Total			access services (NAS) lines
+4.0%	+3.9%	(1.0%)	(8.3%)
10.0 million subscribers	3.6 million subscribers	2.7 million subscribers	2.6 million subscribers
at June 30, 2020	at June 30, 2020	at June 30, 2020	at June 30, 2020

(1) Adjusted net earnings, adjusted EPS, free cash flow and adjusted EBITDA are non-GAAP financial measures and do not have any standardized meaning under International Financial Reporting Standards (IFRS). Therefore, they are unlikely to be comparable to similar measures presented by other issuers. See section 8.2, Non-GAAP financial measures and key performance indicators (KPIs) – Adjusted net earnings and adjusted EPS, Free cash flow and dividend payout ratio and Adjusted EBITDA and adjusted EBITDA margin, in this MD&A for more details, including reconciliations to the most comparable IFRS financial measure.

BCE Inc. 2020 Second Quarter Shareholder Report         3

1 MD&A Overview

BCE INCOME STATEMENTS – SELECTED INFORMATION

	Q2 2020			Q2 2019			$ CHANGE			% CHANGE			YTD 2020			YTD 2019			$ CHANGE			% CHANGE
Operating revenues
Service		4,800			5,190			(390	)		(7.5%)			9,818			10,190			(372	)		(3.7	%)
Product		554			699			(145	)		(20.7%)			1,176			1,388			(212	)		(15.3	%)
Total operating revenues		5,354			5,889			(535	)		(9.1%)			10,994			11,578			(584	)		(5.0	%)
Operating costs		(3,023	)		(3,317	)		294			8.9%			(6,245	)		(6,624	)		379			5.7	%
Adjusted EBITDA		2,331			2,572			(241	)		(9.4%)			4,749			4,954			(205	)		(4.1	%)
Adjusted EBITDA margin (1)		43.5	%		43.7	%					(0.2) p	ts		43.2	%		42.8	%					0.4	pts
Net earnings from continuing operations attributable to:
Common shareholders		233			754			(521	)		(69.1%)			908			1,485			(577	)		(38.9	%)
Preferred shareholders		34			38			(4	)		(10.5%)			72			76			(4	)		(5.3	%)
Non-controlling interest		23			18			5			27.8%			38			31			7			22.6	%
Net earnings from continuing operations		290			810			(520	)		(64.2%)			1,018			1,592			(574	)		(36.1	%)
Net earnings from discontinued operations		4			7			(3	)		(42.9%)			9			16			(7	)		(43.8	%)
Net earnings		294			817			(523	)		(64.0%)			1,027			1,608			(581	)		(36.1	%)
Net earnings attributable to:
Common shareholders		237			761			(524	)		(68.9%)			917			1,501			(584	)		(38.9	%)
Preferred shareholders		34			38			(4	)		(10.5%)			72			76			(4	)		(5.3	%)
Non-controlling interest		23			18			5			27.8%			38			31			7			22.6	%
Net earnings		294			817			(523	)		(64.0%)			1,027			1,608			(581	)		(36.1	%)
Adjusted net earnings		573			840			(267	)		(31.8%)			1,287			1,523			(236	)		(15.5	%)
Net earnings from continuing operations per common share		0.26			0.84			(0.58	)		(69.0%)			1.00			1.65			(0.65	)		(39.4	%)
Net earnings from discontinued operations per common share		–			0.01			(0.01	)		(100.0%)			0.01			0.02			(0.01	)		(50.0	%)
Net earnings per common share (EPS)		0.26			0.85			(0.59	)		(69.4%)			1.01			1.67			(0.66	)		(39.5	%)
Adjusted EPS		0.63			0.93			(0.30	)		(32.3%)			1.42			1.69			(0.27	)		(16.0	%)
(1) Adjusted EBITDA margin is a non-GAAP financial measure and does not have any standardized meaning under IFRS. Therefore, it is unlikely to be comparable to similar measures presented by other issuers. See section 8.2, Non-GAAP financial measures and key performance indicators (KPIs) – Adjusted EBITDA and adjusted EBITDA margin in this MD&A for more details, including reconciliations to the most comparable IFRS financial measure.
BCE STATEMENTS OF CASH FLOWS – SELECTED INFORMATION
	Q2 2020			Q2 2019			$ CHANGE			% CHANGE			YTD 2020			YTD 2019			$ CHANGE			% CHANGE
Cash flows from operating activities		2,562			2,093			469			22.4%			4,013			3,609			404			11.2%
Capital expenditures		(900	)		(967	)		67			6.9%			(1,677	)		(1,815	)		138			7.6%
Free cash flow		1,611			1,076			535			49.7%			2,222			1,695			527			31.1%

Q2 2020 FINANCIAL HIGHLIGHTS

BCE revenues declined by 9.1% in Q2 2020, compared to the same period last year, reflecting a full quarter impact of the COVID-19 pandemic that drove declines across all three of our operating segments due to reduced economic and commercial activity. Media advertising revenues, wireless product sales and outbound roaming revenues were the most significantly affected by the COVID-19 pandemic. Service revenues decreased by 7.5% year over year, due to a decline in wireless service revenues, the ongoing erosion in our voice, satellite TV and legacy data revenues, as well as lower media advertising and subscriber revenues, moderated by the continued growth of our postpaid and prepaid wireless, retail Internet, and Internet protocol television (IPTV) subscriber bases, as well as the flow-through of 2019 rate increases. Product revenues decreased by 20.7% year over year, primarily due to lower wireless product sales and lower equipment sales to large enterprise customers attributable to the COVID-19 pandemic.

Net earnings decreased by 64.0% in the second quarter of 2020, compared to the same period last year, mainly due to a $448 million increase in impairment of assets primarily related to broadcast licenses, program and feature film rights, and other assets related to certain English and French TV services as well as various radio markets within our Bell Media segment, as well as lower adjusted EBITDA, partly offset by lower income taxes.

BCE’s adjusted EBITDA declined by 9.4% in Q2 2020, compared to the same period last year, driven by declines in all of our segments, mainly due to the unfavourable impact of the COVID-19 pandemic on revenues, moderated by operating cost savings. This resulted in an adjusted EBITDA margin of 43.5% in Q2 2020, down 0.2 pts compared to the 43.7% achieved in Q2 2019, mainly from lower service revenue flow-through, offset in part by lower operating expenses and reduced low-margin product revenues.

BCE’s EPS of $0.26 in Q2 2020 decreased by $0.59 compared to the same period last year.

4             BCE Inc. 2020 Second Quarter Shareholder Report

1 MD&A Overview

Excluding the impact of severance, acquisition and other costs, net mark-to-market gains (losses) on derivatives used to economically hedge equity settled share-based compensation plans, net gains (losses) on investments, early debt redemption costs, impairment of assets and discontinued operations, net of tax and non-controlling interest (NCI), adjusted net earnings in the second quarter of 2020 was $573 million, or $0.63 per common share, compared to $840 million, or $0.93 per common share, for the same period last year.

Cash flows from operating activities in the second quarter of 2020 increased by $469 million mainly due to higher cash from working capital, as a result of strong cash collections as well as delayed tax payments due to government relief measures related to COVID-19.

Free cash flow in Q2 2020 increased by $535 million mainly due to higher cash flows from operating activities, excluding cash from discontinued operations and acquisition and other costs paid, and lower capital expenditures.

1.2    Key corporate and business developments

SALE OF DATA CENTRES

On June 1, 2020, BCE announced that it entered into a definitive agreement to sell 25 data centres at 13 sites to global interconnection and data centre company Equinix in an all-cash transaction valued at Cdn $1.04 billion. The transaction reinforces Bell’s strategy to focus investment on network infrastructure, content and service innovation. Equinix will be acquiring 13 sites representing 25 Bell data centre facilities in 8 cities across Canada. Bell will continue to own and operate 5 other data centres that are located in its network central offices in Calgary, Halifax, Saint John, St. John’s and Toronto. All required regulatory approvals have been obtained and the transaction is expected to close in the second half of 2020 subject to customary closing conditions. As part of the transaction, Bell Business Markets will become the first Equinix Platinum Partner in Canada, which will provide Bell enterprise clients with access to the international scale of Equinix’s advanced integrated network and cloud solutions.

PUBLIC DEBT OFFERING

On May 14, 2020, Bell Canada completed a public offering of Cdn $1.5 billion of medium term notes (MTN) debentures in two series pursuant to its MTN program. The Cdn $500 million Series M-51 MTN debentures, which were issued pursuant to a re-opening of an existing series of MTN debentures, will mature on September 30, 2050 and carry an annual interest rate of 3.50%. The Cdn $1 billion Series M-52 MTN debentures will mature on May 14, 2030 and carry an annual interest rate of 2.50%. The MTN debentures are fully and unconditionally guaranteed by BCE Inc. The net proceeds of the offering were used to repay short-term debt and for general corporate purposes.

SERVICE IMPROVEMENTS HIGHLIGHTED IN CCTS REPORT

Bell’s investments in customer experience helped drive a 26.3% drop in the number of customer complaints accepted by the Commission for Complaints for Telecom-television Services (CCTS) according to the federal agency’s mid-year report. Bell’s improvement was the best performance among national carriers. The CCTS report, which covers the period from August 1, 2019 to January 31, 2020, also showed Bell’s overall share of total complaints dropped by more than 16%. Bell was the only major communications provider to see its share of total complaints decline in the report, continuing a trend established over the last 4 annual CCTS reports. Complaints to the CCTS from across the industry were down 12% overall during the reporting period, due mostly to the decline in the number of Bell customer complaints.

RECOGNITION OF BELL’S ENVIRONMENTAL LEADERSHIP

Bell was named one of Canada’s Greenest Employers by Canada’s Top 100 Employers program for the fourth consecutive year. The award recognizes our environmental leadership and ongoing efforts to improve the sustainability of our operations. Bell was the first Canadian communications company to achieve ISO 14001 environmental certification in 2009 and has a proven environmental track record. The following are some highlights:

• Since 2016, Bell has recovered nearly 10 million TV receivers, modems and mobile phones through the internal take back processes and Bell Trade-in and Bell Blue Box programs

• We have installed more than 90 electric vehicle charging stations at Bell locations for use by our team members

• In 2019, we were successful in generating 170,000 kilowatt hour (kWh) of renewable energy through innovative wind and solar projects

• This year, we plan to have our Energy Management System audited for the ISO 50001 certification to continuously improve our energy performance and efficiency through a structured framework, thus generating additional savings

BCE Inc. 2020 Second Quarter Shareholder Report         5

1 MD&A Overview

1.3    Assumptions

The forward-looking statements set out in this MD&A are based on certain assumptions including, without limitation, the following assumptions. Due to uncertainties relating to the severity and duration of the COVID-19 pandemic, including possible resurgences in the number of COVID-19 cases, and various potential outcomes, we are not able at this time to estimate the impacts of the COVID-19 pandemic on our business or future financial results and related assumptions. Accordingly, the assumptions outlined in this MD&A and, consequently, the forward-looking statements based on such assumptions, may turn out to be inaccurate. The extent to which the COVID-19 pandemic will continue to adversely impact our business, financial condition, liquidity and financial results will depend on future developments that are unknown and cannot be predicted, as well as new information which may emerge concerning the severity, duration and possible resurgences of the COVID-19 pandemic and the actions required to contain the coronavirus or remedy its impacts, among others. Readers should also refer to Section 7, Business risks, of this MD&A for a description of risk factors including, without limitation, those relating to the COVID-19 pandemic, which could cause any of our assumptions, and related forward-looking statements, not to materialize.

ASSUMPTIONS

• Our liquidity from our cash and cash equivalents balance, the remaining capacity under our committed credit facilities, our cash flows from operations, continued access to the public capital, bank credit and commercial paper markets based on investment-grade credit ratings, and continued access to our securitized trade receivables programs, will be sufficient to meet our cash requirements for the remainder of 2020

• No material financial, operational or competitive consequences of changes in regulations affecting any of our business segments

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2 MD&A Consolidated financial analysis

2    Consolidated financial analysis

This section provides detailed information and analysis about BCE’s performance in Q2 and YTD 2020 compared with Q2 and YTD 2019. It focuses on BCE’s consolidated operating results and provides financial information for our Bell Wireless, Bell Wireline and Bell Media business segments. For further discussion and analysis of our business segments, refer to section 3, Business segment analysis.

2.1   BCE consolidated income statements

	Q2 2020			Q2 2019			$ CHANGE			% CHANGE			YTD 2020			YTD 2019			$ CHANGE			% CHANGE
Operating revenues
Service		4,800			5,190			(390	)		(7.5%)			9,818			10,190			(372	)		(3.7%)
Product		554			699			(145	)		(20.7%)			1,176			1,388			(212	)		(15.3%)
Total operating revenues		5,354			5,889			(535	)		(9.1%)			10,994			11,578			(584	)		(5.0%)
Operating costs		(3,023	)		(3,317	)		294			8.9%			(6,245	)		(6,624	)		379			5.7%
Adjusted EBITDA		2,331			2,572			(241	)		(9.4%)			4,749			4,954			(205	)		(4.1%)
Adjusted EBITDA margin		43.5	%		43.7	%					(0.2) p	ts		43.2	%		42.8	%					0.4 pts
Severance, acquisition and other costs		(22	)		(39	)		17			43.6%			(38	)		(63	)		25			39.7%
Depreciation		(869	)		(879	)		10			1.1%			(1,727	)		(1,752	)		25			1.4%
Amortization		(234	)		(220	)		(14	)		(6.4%)			(464	)		(437	)		(27	)		(6.2%)
Finance costs
Interest expense		(280	)		(279	)		(1	)		(0.4%)			(557	)		(560	)		3			0.5%
Interest on post-employment benefit obligations		(11	)		(15	)		4			26.7%			(23	)		(31	)		8			25.8%
Impairment of assets		(449	)		(1	)		(448	)		n.m.			(456	)		(5	)		(451	)		n.m.
Other (expense) income		(80	)		(54	)		(26	)		(48.1%)			(127	)		51			(178	)		n.m.
Income taxes		(96	)		(275	)		179			65.1%			(339	)		(565	)		226			40.0%
Net earnings from continuing operations		290			810			(520	)		(64.2%)			1,018			1,592			(574	)		(36.1%)
Net earnings from discontinued operations		4			7			(3	)		(42.9%)			9			16			(7	)		(43.8%)
Net earnings		294			817			(523	)		(64.0%)			1,027			1,608			(581	)		(36.1%)
Net earnings from continuing operations attributable to:
Common shareholders		233			754			(521	)		(69.1%)			908			1,485			(577	)		(38.9%)
Preferred shareholders		34			38			(4	)		(10.5%)			72			76			(4	)		(5.3%)
Non-controlling interest		23			18			5			27.8%			38			31			7			22.6%
Net earnings from continuing operations		290			810			(520	)		(64.2%)			1,018			1,592			(574	)		(36.1%)
Net earnings attributable to:
Common shareholders		237			761			(524	)		(68.9%)			917			1,501			(584	)		(38.9%)
Preferred shareholders		34			38			(4	)		(10.5%)			72			76			(4	)		(5.3%)
Non-controlling interest		23			18			5			27.8%			38			31			7			22.6%
Net earnings		294			817			(523	)		(64.0%)			1,027			1,608			(581	)		(36.1%)
Adjusted net earnings		573			840			(267	)		(31.8%)			1,287			1,523			(236	)		(15.5%)
Net earnings per common share
Continuing operations		0.26			0.84			(0.58	)		(69.0%)			1.00			1.65			(0.65	)		(39.4%)
Discontinued operations		–			0.01			(0.01	)		(100.0%)			0.01			0.02			(0.01	)		(50.0%)
Net earnings per common share		0.26			0.85			(0.59	)		(69.4%)			1.01			1.67			(0.66	)		(39.5%)
Adjusted EPS		0.63			0.93			(0.30	)		(32.3%)			1.42			1.69			(0.27	)		(16.0%)

n.m.: not meaningful

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2 MD&A Consolidated financial analysis

2.2  Customer connections

BCE NET (LOSSES) ACTIVATIONS

	Q2 2020			Q2 2019			% CHANGE		YTD 2020			YTD 2019			% CHANGE
Wireless subscribers net activations		34,702			149,478			(76.8%)		54,297			187,760			(71.1%)
Postpaid		21,632			102,980			(79.0%)		45,282			153,184			(70.4%)
Prepaid		13,070			46,498			(71.9%)		9,015			34,576			(73.9%)
Wireline retail high-speed Internet subscribers net activations		19,023			19,414			(2.0%)		41,618			42,085			(1.1%)
Wireline retail TV subscribers net (losses) activations		(15,544	)		2,350			(761.4%)		(34,099	)		790			n.m.
IPTV		(3,604	)		16,775			(121.5%)		(752	)		37,691			(102.0%)
Satellite		(11,940	)		(14,425	)		17.2%		(33,347	)		(36,901	)		9.6%
Wireline retail residential NAS lines net losses		(48,405	)		(72,780	)		33.5%		(110,000	)		(139,559	)		21.2%
Total services net (losses) activations		(10,224	)		98,462			(110.4%)		(48,184	)		91,076			(152.9%)

n.m.: not meaningful

TOTAL BCE CUSTOMER CONNECTIONS

	Q2 2020		Q2 2019		% CHANGE
Wireless subscribers		10,012,259		9,630,313		4.0%
Postpaid		9,205,222		8,911,169		3.3%
Prepaid		807,037		719,144		12.2%
Wireline retail high-speed Internet subscribers		3,597,219		3,461,825		3.9%
Wireline retail TV subscribers		2,738,365		2,767,201		(1.0%)
IPTV		1,766,430		1,713,397		3.1%
Satellite		971,935		1,053,804		(7.8%)
Wireline retail residential NAS lines		2,587,483		2,821,249		(8.3%)
Total services subscribers		18,935,326		18,680,588		1.4%

BCE had 10,224 net retail customer losses in Q2 2020, compared to 98,462 net retail activations in Q2 2019. The net retail customer losses in Q2 2020 consisted of:

• 21,632 postpaid wireless net customer activations, and 13,070 prepaid wireless net customer additions

• 19,023 retail high-speed Internet net customer activations

• 15,544 retail TV net customer losses comprised of 11,940 retail satellite TV net customer losses and 3,604 retail IPTV net customer losses

• 48,405 retail residential NAS net losses

During the first six months of the year, BCE had 48,184 net retail customer losses, compared to 91,076 net retail activations last year. The year-to-date net retail customer losses consisted of:

• 45,282 postpaid wireless net customer activations, and 9,015 prepaid wireless net customer additions

• 41,618 retail high-speed Internet net customer activations

• 34,099 retail TV net customer losses comprised of 33,347 retail satellite TV net customer losses and 752 retail IPTV net customer losses

• 110,000 retail residential NAS net losses

At June 30 2020, BCE retail customer connections totaled 18,935,326, up 1.4% year over year, and consisted of the following:

• 10,012,259 wireless subscribers, up 4.0% compared to Q2 2019, comprised of 9,205,222 postpaid subscribers, an increase of 3.3% over last year, and 807,037 prepaid subscribers, up 12.2% year over year

• 3,597,219 retail high-speed Internet subscribers, 3.9% higher than last year

• 2,738,365 total retail TV subscribers, down 1.0% compared to Q2 2019, comprised of 1,766,430 retail IPTV customers, up 3.1% year over year, and 971,935 retail satellite TV subscribers, down 7.8% year over year

• 2,587,483 retail residential NAS lines, a decline of 8.3% compared to Q2 2019

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2.3  Operating revenues

BCE Revenues (in $ millions)	BCE Revenues (in $ millions)

	Q2 2020			Q2 2019			$ CHANGE			% CHANGE		YTD 2020			YTD 2019			$ CHANGE			% CHANGE
Bell Wireless		1,922			2,160			(238	)		(11.0%)		3,957			4,237			(280	)		(6.6%)
Bell Wireline		3,043			3,073			(30	)		(1.0%)		6,079			6,125			(46	)		(0.8%)
Bell Media		579			842			(263	)		(31.2%)		1,331			1,587			(256	)		(16.1%)
Inter-segment eliminations		(190	)		(186	)		(4	)		(2.2%)		(373	)		(371	)		(2	)		(0.5%)
Total BCE operating revenues		5,354			5,889			(535	)		(9.1%)		10,994			11,578			(584	)		(5.0%)

BCE

Total operating revenues at BCE declined by 9.1% in Q2 2020, and by 5.0% in the first half of the year, compared to the same periods in 2019, driven by reduced economic and commercial activity as a result of the COVID-19 pandemic, which drove revenue declines across all three of our segments, with a more significant impact on media advertising revenues, wireless product sales and outbound roaming revenues. BCE service revenues of $4,800 million in Q2 2020 and $9,818 million in the first six months of the year, decreased by 7.5% and 3.7%, respectively, over the same periods in 2019. BCE product revenues of $554 million in Q2 2020 and $1,176 million in the first six months of 2020, declined by 20.7% and 15.3% year over year, respectively. Wireless operating revenues decreased by 11.0% in Q2 2020 and by 6.6% in the first six months of the year, compared to the same periods last year, driven by lower product revenues of 24.5% and 17.0%, respectively, along with service revenue declines of 6.2% and 2.9%, respectively. Wireline operating revenues declined by 1.0% in Q2 2020 and by 0.8% in the first six months of the year, compared to the same periods in 2019, attributable to reduced service revenue of 0.8% and 0.4%, respectively, from lower voice revenues, moderated by higher data revenues, along with product revenue declines of 5.3% and 8.7%, respectively. Bell Media operating revenues decreased by 31.2% in Q2 2020 and by 16.1% in the first six months of the year, compared to the same periods in 2019, due to reduced advertising and subscriber revenues.

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2 MD&A Consolidated financial analysis

2.4  Operating costs

BCE	BCE
Operating cost profile	Operating cost profile
Q2 2019	Q2 2020
BCE	BCE
Operating cost profile	Operating cost profile
YTD 2019	YTD 2020

	Q2 2020			Q2 2019			$ CHANGE			% CHANGE		YTD 2020			YTD 2019			$ CHANGE			% CHANGE
Bell Wireless		(1,043	)		(1,192	)		149			12.5%		(2,150	)		(2,377	)		227			9.5%
Bell Wireline		(1,764	)		(1,723	)		(41	)		(2.4%)		(3,465	)		(3,450	)		(15	)		(0.4%)
Bell Media		(406	)		(588	)		182			31.0%		(1,003	)		(1,168	)		165			14.1%
Inter-segment eliminations		190			186			4			2.2%		373			371			2			0.5%
Total BCE operating costs		(3,023	)		(3,317	)		294			8.9%		(6,245	)		(6,624	)		379			5.7%

(1) Cost of revenues includes costs of wireless devices and other equipment sold, network and content costs, and payments to other carriers.

(2) Labour costs (net of capitalized costs) include wages, salaries and related taxes and benefits, post-employment benefit plans service cost, and other labour costs, including contractor and outsourcing costs.

(3) Other operating costs include marketing, advertising and sales commission costs, bad debt expense, taxes other than income taxes, information technology (IT) costs, professional service fees and rent.

BCE

Total BCE operating costs declined by 8.9% in Q2 2020, and by 5.7% in the first six months of the year, compared to the same periods in 2019, driven by reduced costs in Bell Wireless of 12.5% and 9.5%, respectively, and lower costs in Bell Media of 31.0% and 14.1%, respectively, partly offset by higher year-over-year costs in Bell Wireline of 2.4% and 0.4%, respectively. The decrease in operating expenses is mainly due to reduced costs associated with the revenue decline as a result of the COVID-19 pandemic.

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2 MD&A Consolidated financial analysis

2.5  Net earnings

BCE	BCE
Net earnings	Net earnings
(in $ millions)	(in $ millions)

Net earnings in the second quarter and on a year-to-date basis in 2020 decreased by 64.0% and 36.1%, respectively, compared to the same periods in 2019, mainly due to increases of $448 million and $451 million, respectively, in impairment of assets primarily related to certain English and French TV services as well as various radio markets within our Bell Media segment, as well as lower adjusted EBITDA, partly offset by lower income taxes. Additionally, on a year-to-date basis in 2020, the decrease in net earnings was impacted by increased other expense, which included net mark-to-market losses on derivatives used to economically hedge equity settled share-based compensation plans compared to gains in 2019.

2.6  Adjusted EBITDA

BCE	BCE
Adjusted EBITDA	Adjusted EBITDA
(in $ millions)	(in $ millions)

	Q2 2020		Q2 2019		$ CHANGE			% CHANGE		YTD 2020		YTD 2019		$ CHANGE			% CHANGE
Bell Wireless		879		968		(89	)		(9.2%)		1,807		1,860		(53	)		(2.8%)
Bell Wireline		1,279		1,350		(71	)		(5.3%)		2,614		2,675		(61	)		(2.3%)
Bell Media		173		254		(81	)		(31.9%)		328		419		(91	)		(21.7%)
Total BCE adjusted EBITDA		2,331		2,572		(241	)		(9.4%)		4,749		4,954		(205	)		(4.1%)

BCE

BCE’s adjusted EBITDA decreased by 9.4% in Q2 2020, and by 4.1% during the first half of the year, compared to the same periods in 2019, driven by declines across all three of our segments, due to the adverse impact of the COVID-19 pandemic, which drove lower year-over-year revenues, offset in part by operating expense savings. This corresponded to an adjusted EBITDA margin of 43.5% in Q2 2020, down 0.2 pts over the same period last year, mainly reflecting lower service revenue flow-through, partly offset by lower operating expenses and reduced low-margin product sales. In the first six months of the year, the adjusted EBITDA margin of 43.2% increased 0.4 pts over the same period last year, due to lower operating expenses and reduced low-margin product sales, partly offset by lower service revenue flow-through.

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2 MD&A Consolidated financial analysis

2.7  Severance, acquisition and other costs

2020

Severance, acquisition and other costs of $22 million in the second quarter of 2020 and $38 million on a year-to-date-basis included:

• Acquisition and other costs of $20 million in Q2 2020 and $28 million on a year-to-date basis

• Severance costs of $2 million in Q2 2020 and $10 million on a year-to-date basis for workforce reduction initiatives

2019

Severance, acquisition and other costs of $39 million in the second quarter of 2019 and $63 million on a year-to-date basis included:

• Severance costs of $20 million in Q2 2019 and $27 million on a year-to-date basis for workforce reduction initiatives

• Acquisition and other costs of $19 million in Q2 2019 and $36 million on a year-to-date basis

2.8  Depreciation and amortization

DEPRECIATION

Depreciation in the second quarter and on a year-to-date basis in 2020 decreased by $10 million and $25 million, respectively, compared to the same periods in 2019, due to an increase in the estimate of useful lives of certain assets as a result of our ongoing annual review process, partly offset by a higher asset base as we continued to invest in our broadband and wireless networks as well as our IPTV services.

AMORTIZATION

Amortization in the second quarter and on a year-to-date basis in 2020 increased by $14 million and $27 million, respectively, compared to the same periods in 2019, mainly due to a higher asset base.

2.9  Finance costs

INTEREST EXPENSE

Interest expense in the second quarter of 2020 increased by $1 million, compared to the same period last year, mainly due to higher average debt levels, partly offset by lower average interest rates.

Interest expense on a year-to-date basis in 2020 decreased by $3 million, compared to the same period last year, mainly due to lower average interest rates, partly offset by higher average debt levels.

INTEREST ON POST-EMPLOYMENT BENEFIT OBLIGATIONS

Interest on our post-employment benefit obligations is based on market conditions that existed at the beginning of the year. On January 1, 2020, the discount rate was 3.1% compared to 3.8% on January 1, 2019.

In the second quarter and on a year-to-date basis in 2020, interest expense on post-employment benefit obligations decreased by $4 million and $8 million, respectively, compared to the same periods last year, due to a lower discount rate and a lower net post-employment benefit obligation at the beginning of the year.

The impacts of changes in market conditions during the year are recognized in other comprehensive (loss) income (OCI).

2.10  Impairment of assets

During the second quarter of 2020, we identified indicators of impairment for certain of our Bell Media TV services and radio markets, notably declines in advertising revenues, lower subscriber revenues and overall increases in discount rates resulting from the economic impact of the COVID-19 pandemic. Accordingly, impairment testing was required for certain groups of cash-generating units (CGUs) as well as for goodwill.

Impairment charges for the three and six months ended June 30, 2020 of $449 million and $456 million, respectively, related primarily to $452 million of charges for our English and French TV services as well as various radio markets within our Bell Media segment. These charges included $291 million allocated to indefinite-life intangible assets for broadcast licenses, $146 million allocated to finite-life intangible assets, mainly for program and feature film rights, and $15 million to property, plant and equipment for network and infrastructure and equipment. There was no impairment of Bell Media goodwill.

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2 MD&A Consolidated financial analysis

2.11  Other (expense) income

2020

Other expense of $80 million in Q2 2020 included losses on retirements and disposals of property, plant and equipment and intangible assets, which included a loss related to a change in strategic direction of the ongoing development of some of our TV platform assets, as well as losses on operations from our equity investments. These expenses were partly offset by a gain on BCE’s share of an obligation to repurchase at fair value the minority interest in one of BCE’s joint ventures.

Other expense of $127 million on a year-to-date basis in 2020 was further impacted by net mark-to-market losses on derivatives used to economically hedge equity settled share-based compensation plans and early debt redemption costs, partly offset by net gains on our equity investments, which included a gain on BCE’s share of an obligation to repurchase at fair value the minority interest in one of BCE’s joint ventures, partly offset by losses on operations.

2019

Other expense of $54 million in the second quarter of 2019 included losses from our equity investments, which included BCE’s share of an obligation to repurchase at fair value the minority interest in one of BCE’s joint ventures, and early debt redemption costs, partly offset by net mark-to-market gains on derivatives used to economically hedge equity settled share-based compensation plans.

Other income of $51 million on a year-to-date basis in 2019 included net mark-to-market gains on derivatives used to economically hedge equity settled share-based compensation plans, partly offset by losses from our equity investments, which included BCE’s share of an obligation to repurchase at fair value the minority interest in one of BCE’s joint ventures, and early debt redemption costs.

2.12  Income taxes

Income taxes in the second quarter and on a year-to-date basis in 2020 decreased by $179 million and $226 million, respectively, compared to the same periods in 2019, mainly due to lower taxable income, partly offset by a favourable change in the corporate income tax rate in Alberta in Q2 2019.

2.13  Net earnings attributable to common shareholders and EPS

Net earnings attributable to common shareholders in the second quarter and on a year-to-date basis in 2020 of $237 million and $917 million, respectively, decreased by $524 million and $584 million, respectively, compared to the same periods last year, mainly due to increases of $448 million and $451 million, respectively, in impairment of assets primarily related to certain English and French TV services as well as various radio markets within our Bell Media segment, as well as lower adjusted EBITDA, partly offset by lower income taxes. Additionally, on a year-to-date basis in 2020, the decrease in net earnings was impacted by increased other expense, which included net mark-to-market losses on derivatives used to economically hedge equity settled share-based compensation plans compared to gains in 2019.

BCE’s EPS of $0.26 in Q2 2020 and $1.01 on a year-to-date basis decreased by $0.59 and $0.66, respectively, compared to the same periods last year.

Excluding the impact of severance, acquisition and other costs, net mark-to-market gains (losses) on derivatives used to economically hedge equity settled share-based compensation plans, net gains (losses) on investments, early debt redemption costs, impairment of assets and discontinued operations, net of tax and NCI, adjusted net earnings in the second quarter of 2020 was $573 million, or $0.63 per common share, compared to $840 million, or $0.93 per common share, for the same period last year. Adjusted net earnings in the first half of 2020 was $1,287 million, or $1.42 per common share, compared to $1,523 million, or $1.69 per common share, for the first six months of 2019.

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3 MD&A Business segment analysis – Bell Wireless

3    Business segment analysis

3.1   Bell Wireless

KEY BUSINESS DEVELOPMENTS

LAUNCH OF CANADA’S LARGEST 5G WIRELESS NETWORK

On June 11, 2020, Bell announced the launch of Canada’s largest Fifth Generation (5G) wireless network, offering enhanced mobile data speeds and the latest 5G-capable smartphones. Bell’s initial 5G service is now available in Montréal, the Greater Toronto Area, Calgary, Edmonton and Vancouver, and we plan on expanding to more centres across the country as the next-generation wireless technology grows in speed and capacity. The high capacity and near instant connections offered by mobile 5G will support a virtually unlimited range of new consumer and business applications in coming years, including virtual and augmented reality, artificial intelligence and machine learning, connected vehicles, smart cities and enhanced rural access, and unprecedented Internet of Things opportunities for business and government enterprises.

The first company to trial mobile 5G technology in Canada, Bell is working with a range of leading global and domestic 5G partners, including Telefonaktiebolaget LM Ericsson (Ericsson) and Nokia Corporation, to accelerate Canada’s 5G innovation ecosystem. This includes continued funding of research and development at Canadian institutions, such as a partnership between Western University and Bell to create a new academic centre for research into 5G applications across health, agriculture, transportation, manufacturing and other sectors. On the international stage, Bell is a leader in the setting of global 5G standards with our participation in the Next Generation Mobile Networks (NGMN) consortium and Third Generation Partnership Program (3GPP).

5G PARTNERSHIP WITH ERICSSON

On June 2, 2020, Bell announced that Ericsson will provide radio access network (RAN) equipment for Bell’s national 5G wireless network, including for the Wireless Home Internet service Bell has developed to bring high-speed Internet access to rural Canada. An existing supplier of Fourth Generation (4G) Long-term Evolution (LTE) wireless and other technology to Bell, Ericsson is the first company to enable commercial 5G networks on 4 continents. As with previous wireless and wireline network deployments, Bell is working with multiple equipment suppliers for its 5G rollout. This multi-vendor strategy has been key to delivering Canada’s best national mobile network with Bell 4G LTE, now available in every province and territory to more than 99% of the national population.

VIRGIN MOBILE RANKED HIGHEST IN CUSTOMER SATISFACTION

Virgin Mobile Canada (Virgin Mobile) was ranked highest in overall customer care satisfaction in the J.D. Power 2020 Canada Wireless Customer Care Study for the fourth year in a row, and the fifth time in the last 6 years. Based on surveys completed by nearly 5,000 Canadian wireless customers, Virgin Mobile outperformed all other service providers with the most points overall in the customer care index, which measures satisfaction in categories including phone, in-store and online support as well as clarity of information on company websites, user forums and social media. The study also found that Virgin Mobile customers are increasingly taking advantage of mobile self-serve options, growing customer satisfaction and reflecting the ongoing investments in self-serve innovation across our brands.

Virgin Mobile also ranked best in overall satisfaction in J.D. Power’s 2020 Wireless Purchase Experience Study. Based on surveys completed by more than 5,000 Canadian postpaid wireless customers, the study ranked Virgin Mobile #1 based on store representatives, online and phone purchases, promotions and cost of service.

14             BCE Inc. 2020 Second Quarter Shareholder Report

3 MD&A Business segment analysis – Bell Wireless

FINANCIAL PERFORMANCE ANALYSIS

Q2 2020 PERFORMANCE HIGHLIGHTS

Bell Wireless	Bell Wireless
Revenues	Adjusted EBITDA
(in $ millions)	(in $ millions)
	(% adjusted EBITDA margin)
Bell Wireless	Bell Wireless
Revenues	Adjusted EBITDA
(in $ millions)	(in $ millions)
	(% adjusted EBITDA margin)

Total subscriber growth	Postpaid net activations	Prepaid net activations
+4.0%	21,632	13,070
Q2 2020 vs. Q2 2019	in Q2 2020	in Q2 2020

Postpaid churn in Q2 2020	Blended average billing per user (ABPU) (1) per month
0.82%	(8.8%)
improved 0.24 pts vs. Q2 2019	Q2 2020: $62.77 Q2 2019: $68.79

(1) In Q1 2020, we updated our definition of ABPU to include monthly billings related to device financing receivables owing from customers on contract. Consequently, we restated previously reported 2019 ABPU for comparability. See section 8.2, Non-GAAP financial measures and key performance indicators (KPIs), in this MD&A for the definition of ABPU.

BELL WIRELESS RESULTS

REVENUES

	Q2 2020		Q2 2019		$ CHANGE			% CHANGE		YTD 2020		YTD 2019		$ CHANGE			% CHANGE
External service revenues		1,481		1,580		(99	)		(6.3%)		3,016		3,108		(92	)		(3.0%)
Inter-segment service revenues		12		12		–			–		24		24		–			–
Total operating service revenues		1,493		1,592		(99	)		(6.2%)		3,040		3,132		(92	)		(2.9%)
External product revenues		428		566		(138	)		(24.4%)		915		1,102		(187	)		(17.0%)
Inter-segment product revenues		1		2		(1	)		(50.0%)		2		3		(1	)		(33.3%)
Total operating product revenues		429		568		(139	)		(24.5%)		917		1,105		(188	)		(17.0%)
Total Bell Wireless revenues		1,922		2,160		(238	)		(11.0%)		3,957		4,237		(280	)		(6.6%)

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3 MD&A Business segment analysis – Bell Wireless

Bell Wireless operating revenues decreased by 11.0% in Q2 2020 and by 6.6% for the first half of the year, compared to the same periods last year, driven by both lower service and product revenues.

Service revenues decreased by 6.2% in the quarter and by 2.9% year to date, compared to the same periods in 2019, driven by:

• Decrease in outbound roaming revenues due to the COVID-19 pandemic resulting from reduced customer travel and the waiving of roaming charges during the month of April 2020

• Reduced data overages driven by greater customer adoption of monthly plans with higher data allotments and greater use of Wi-Fi as more subscribers were home during the quarter due to social distancing restrictions as a result of the COVID-19 pandemic

• Shift in device sales mix resulting in the increased adoption of lower-valued monthly plans

• Customer accommodations, including delayed implementation of price increases and revenue credits, due to the financial difficulty experienced by customers as a result of the COVID-19 pandemic

These factors were partly offset by the continued growth in both our postpaid and prepaid subscriber base along with the flow-through of 2019 rate increases.

Product revenues declined by 24.5% in Q2 2020 and by 17.0% in the first half of the year, compared to the same periods last year, driven by:

• Lower device upgrades and gross activations, driven by reduced market activity from the temporary closure of retail distribution channels as a result of the COVID-19 pandemic

• Reduced consumers electronics sales at The Source due to temporary store closures as a result of the COVID-19 pandemic

These factors were partly offset by:

• Lower discounting as a result of the COVID-19 pandemic

• Higher handset prices

OPERATING COSTS AND ADJUSTED EBITDA

	Q2 2020			Q2 2019			$ CHANGE			% CHANGE			YTD 2020			YTD 2019			$ CHANGE			% CHANGE
Operating costs		(1,043	)		(1,192	)		149			12.5%			(2,150	)		(2,377	)		227			9.5%
Adjusted EBITDA		879			968			(89	)		(9.2%)			1,807			1,860			(53	)		(2.8%)
Total adjusted EBITDA margin		45.7	%		44.8	%					0.9 pt	s		45.7	%		43.9	%					1.8 pt	s

Bell Wireless operating costs decreased by 12.5% in Q2 2020 and by 9.5% in the first half of the year, compared to the same periods in 2019, due to:

• Lower product cost of goods sold due to reduced device sales primarily driven by the COVID-19 pandemic

• Reduced labour cost at The Source due to the Canada Emergency Wage Subsidy (CEWS), a wage subsidy program offered by the federal government to eligible employers as a result of the COVID-19 pandemic

These factors were partly offset by:

• Increased network operating costs due to the expansion of network capacity to support increased demand due to the COVID-19 pandemic and launch of our 5G network

• Higher bad debt expense due to greater financial difficulty experienced by customers as a result of the COVID-19 pandemic

Bell Wireless adjusted EBITDA decreased by 9.2% in Q2 2020 and by 2.8% year to date, compared to the same periods in 2019, mainly attributable to the flow-through of the service revenue decline, offset in part by the lower operating costs. Adjusted EBITDA margin, based on wireless operating revenues, increased to 45.7% in both the second quarter and the first six months of 2020, representing an increase of 0.9 pts and 1.8 pts, respectively, compared to the same periods in 2019, driven by lower operating expenses and reduced low-margin product revenues, in part offset by lower service revenue flow-through.

BELL WIRELESS OPERATING METRICS

	Q2 2020		Q2 2019		CHANGE		% CHANGE	YTD 2020		YTD 2019		CHANGE		% CHANGE
Blended ABPU ($/month) (1)	62.77		68.79		(6.02	)	(8.8%)	64.15		68.08		(3.93	)	(5.8%)
Gross activations	372,710		517,650		(144,940	)	(28.0%)	779,129		927,951		(148,822	)	(16.0%)
Postpaid	243,166		375,094		(131,928	)	(35.2%)	525,578		695,652		(170,074	)	(24.4%)
Prepaid	129,544		142,556		(13,012	)	(9.1%)	253,551		232,299		21,252		9.1%
Net activations	34,702		149,478		(114,776	)	(76.8%)	54,297		187,760		(133,463	)	(71.1%)
Postpaid	21,632		102,980		(81,348	)	(79.0%)	45,282		153,184		(107,902	)	(70.4%)
Prepaid	13,070		46,498		(33,428	)	(71.9%)	9,015		34,576		(25,561	)	(73.9%)
Blended churn % (average per month)	1.13	%	1.29	%			0.16 pts	1.21	%	1.30	%			0.09 pts
Postpaid	0.82	%	1.06	%			0.24 pts	0.90	%	1.06	%			0.16 pts
Prepaid	4.63	%	4.20	%			(0.43) pts	4.83	%	4.34	%			(0.49) pts
Subscribers	10,012,259		9,630,313		381,946		4.0%	10,012,259		9,630,313		381,946		4.0%
Postpaid	9,205,222		8,911,169		294,053		3.3%	9,205,222		8,911,169		294,053		3.3%
Prepaid	807,037		719,144		87,893		12.2%	807,037		719,144		87,893		12.2%

(1) In Q1 2020, we updated our definition of ABPU to include monthly billings related to device financing receivables owing from customers on contract. Consequently, we restated previously reported 2019 ABPU for comparability. See section 8.2, Non-GAAP financial measures and key performance indicators (KPIs), in this MD&A for the definition of ABPU.

16             BCE Inc. 2020 Second Quarter Shareholder Report

3 MD&A Business segment analysis – Bell Wireless

Blended ABPU of $62.77 in Q2 2020 and $64.15 year to date, decreased by 8.8% and 5.8%, respectively, compared to the same periods last year, driven by:

• Decrease in outbound roaming revenues driven by reduced travel and waiving of roaming charges for the month of April 2020 as a result of the COVID-19 pandemic

• Lower data overages due to increased customer adoption of monthly plans with higher data allotments and greater use of Wi-Fi as more subscribers were home due to social distancing restrictions as a result of the COVID-19 pandemic

• Shift in device sales mix resulting in the increased adoption of lower-valued monthly plans

• Customer accommodations, including delayed implementation of price increases and revenue credits, due to the financial difficulty experienced by customers as a result of the COVID-19 pandemic

• The dilutive impact from the continued growth in prepaid customers driven by Lucky Mobile, our low-cost prepaid mobile service

These factors were partly offset by:

• Year-over-year favourability from monthly billings relating to device financing plans launched in July 2019

• The flow-through of 2019 rate increases

Total gross wireless activations declined by 28.0% in Q2 2020 compared to Q2 2019, due to both lower postpaid and prepaid gross activations. During the first six months of the year, gross activations declined by 16.0% compared to the same period in 2019, due to lower postpaid gross activations, offset in part by higher prepaid gross activations.

• Postpaid gross activations decreased by 35.2% in Q2 2020 and by 24.4% year to date, compared to the same periods last year, driven by fewer promotional offers and reduced market activity from the temporary closure of retail distribution channels as a result of the COVID-19 pandemic

• Prepaid gross activations decreased by 9.1% in the current quarter and increased by 9.1% for the first half of the year, compared to the same periods in 2019. The year-to-date increase was mainly driven by the growth in Lucky Mobile due to the national retail distribution agreement with Dollarama Inc., which lapped at the beginning of May 2020, thereby resulting in the year-over-year decline in the second quarter.

Blended wireless churn declined by 0.16 pts in the quarter and by 0.09 pts for the first half of the year, to 1.13% and 1.21%, respectively, compared to the same periods in 2019.

• Postpaid churn of 0.82% in Q2 2020 and 0.90% year to date, improved by 0.24 pts and 0.16 pts, respectively, compared to the same periods in 2019, driven by fewer deactivations from lower promotional offers and reduced market activity due to the temporary closure of retail stores as a result of the COVID-19 pandemic, offset in part by a provision taken due to the COVID-19 pandemic for non-paying customers who have not been disconnected.

• Prepaid churn of 4.63% in Q2 2020 and 4.83% year to date, increased by 0.43 pts and 0.49 pts, respectively, compared to the same periods last year, due to greater deactivations as a result of increased financial difficulties experienced by customers in this cost conscious market due to the COVID-19 pandemic

Net activations declined by 76.8% in Q2 2020 and by 71.1% for the first half of the year, compared to the same periods in 2019, due to both lower postpaid and prepaid net activations.

• Postpaid net activations decreased by 79.0% in Q2 2020 and by 70.4% year to date, compared to the same periods last year, driven by lower gross activations, offset in part by reduced customer deactivations

• Prepaid net activations decreased by 71.9% this quarter, compared to 2019, due to lower gross activations and greater customer deactivations. In the first six months of the year, prepaid net activations decreased by 73.9%, compared to 2019, due to greater customer deactivations, moderated by higher gross activations.

Wireless subscribers at June 30, 2020 totaled 10,012,259, an increase of 4.0% compared to the same period last year. This was comprised of 9,205,222 postpaid subscribers and 807,037 prepaid subscribers, an increase of 3.3% and 12.2%, respectively, year over year. At the end of Q2 2020, the proportion of Bell Wireless customers subscribing to our postpaid service decreased by 1 pt over last year to 92%.

BCE Inc. 2020 Second Quarter Shareholder Report         17

3 MD&A Business segment analysis – Bell Wireline

3.2  Bell Wireline

KEY BUSINESS DEVELOPMENTS

WIRELESS HOME INTERNET DOWNLOAD SPEEDS DOUBLING, SERVICE EXPANDING TO RURAL ATLANTIC CANADA

On July 23, 2020, Bell announced its Wireless Home Internet service for rural Canada will increase Internet download speeds to up to 50 Megabits per second (Mbps) and uploads to 10 Mbps (50/10) this fall while also expanding to rural communities throughout Atlantic Canada this fall. The new 50/10 Wireless Home Internet service will initially be offered to approximately 300,000 homes in 325 communities in Ontario, Québec and the Atlantic provinces starting this fall. Fully funded by Bell, the Wireless Home Internet program is designed to bring broadband Internet access to homes in rural communities and other hard-to-reach locations by leveraging the scale of Bell’s high-performance wireless networks – which will include upgrades to 5G service as necessary wireless spectrum is made available by the federal government. Already available to approximately 400,000 households in Ontario and Québec with download speeds of 25 Mbps, Bell’s Wireless Home Internet service is expected to ultimately reach 1 million homes in smaller towns and rural communities across Newfoundland and Labrador, Nova Scotia, Prince Edward Island, New Brunswick, Québec, Ontario and Manitoba.

EXPANSION OF ALL-FIBRE BROADBAND NETWORK

On May 21, 2020, Bell announced new projects to bring high-speed Internet to unserved regions of Québec in partnership with the Québec government’s Régions branchées program. These projects will provide all-fibre Internet connections to approximately 7,000 homes, businesses and other organizations in 18 communities across Québec.

On May 15, 2020, Bell announced an investment to bring its all-fibre network to approximately 3,300 residences and business locations throughout the City of Morden in the Pembina Valley region of southern Manitoba. Fully funded by Bell, the Morden fibre network expansion is part of Bell’s $1 billion investment plan to deploy the most advanced fibre and wireless broadband networks throughout Manitoba.

With a direct fibre footprint encompassing 5.4 million homes and commercial locations across our expansive wireline footprint at the end of Q2 2020, up from 5.1 million at the end of 2019, Bell has the largest fibre-to-the-premise (FTTP) footprint in Canada, enabling total speeds of up to 1.5 Gigabits per second.

VIRGIN MOBILE TURNS ON VIRGIN TV

On July 14, 2020, Virgin Mobile launched Virgin TV, a completely new way for Virgin Internet members in Ontario and Québec to get the most popular live and on-demand TV shows and live sports on any screen they want. Virgin TV is an app-based service that does not require a traditional TV set-top box or installation, and it works on virtually all devices – iOS and Android smartphones and tablets, laptops, Amazon Fire TV Stick, Android TV, Apple TV and Google Chromecast. Available at the App Store and Google Play, the Virgin TV app lets members watch 2 streams at once, pause and rewind live TV, resume on-demand programs where they left off, and track all the top trending shows. The Virgin TV core package includes more than 50 channels and members can add channels à la carte or with add-on packs, and also get Crave + Movies + HBO and Starz streaming to fully customize their package.

PARTNERSHIP WITH BLACKBERRY TO DELIVER ENHANCED MOBILE THREAT DEFENSE TO ENTERPRISE CUSTOMERS

On June 16, 2020, Bell announced a new partnership with BlackBerry Limited (BlackBerry) to provide enhanced secure communications to business and government customers, strengthening their longstanding relationship to deliver mobile security solutions to Canadian consumers and business customers. BlackBerry becomes Bell’s preferred Mobile Threat Defense (MTD) partner, enabling Canada’s largest communications company to offer its enterprise customers access to BlackBerry Protect, the MTD solution that uses the power of artificial intelligence to block malware infections, prevent URL phishing attacks and provide application integrity checking.

18             BCE Inc. 2020 Second Quarter Shareholder Report

3 MD&A Business segment analysis – Bell Wireline

FINANCIAL PERFORMANCE ANALYSIS

Q2 2020 PERFORMANCE HIGHLIGHTS

Bell Wireline	Bell Wireline
Revenues	Adjusted EBITDA
(in $ millions)	(in $ millions)
	(% adjusted EBITDA margin)
Bell Wireline	Bell Wireline
Revenues	Adjusted EBITDA
(in $ millions)	(in $ millions)
	(% adjusted EBITDA margin)

Retail high-speed Internet	Retail high-speed Internet	Retail TV
+3.9%	19,023	(1.0%)
Subscriber growth	Total net subscriber activations	Subscriber decline
Q2 2020 vs. Q2 2019	in Q2 2020	Q2 2020 vs. Q2 2019

Retail IPTV	Retail residential NAS lines
(3,604)	(8.3%)
Total net subscriber losses in Q2 2020	Subscriber decline in Q2 2020

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3 MD&A Business segment analysis – Bell Wireline

BELL WIRELINE RESULTS    

REVENUES    

	Q2 2020		Q2 2019		$ CHANGE			% CHANGE			YTD 2020		YTD 2019		$ CHANGE			% CHANGE
Data		1,916		1,914		2			0.1%			3,807		3,780		27			0.7%
Voice		863		897		(34	)		(3.8%	)		1,735		1,804		(69	)		(3.8%	)
Other services		58		62		(4	)		(6.5%	)		120		121		(1	)		(0.8%	)
Total external service revenues		2,837		2,873		(36	)		(1.3%	)		5,662		5,705		(43	)		(0.8%	)
Inter-segment service revenues		80		67		13			19.4%			156		134		22			16.4%
Total operating service revenues		2,917		2,940		(23	)		(0.8%	)		5,818		5,839		(21	)		(0.4%	)
Data		113		123		(10	)		(8.1%	)		236		265		(29	)		(10.9%	)
Equipment and other		13		10		3			30.0%			25		21		4			19.0%
Total external product revenues		126		133		(7	)		(5.3%	)		261		286		(25	)		(8.7%	)
Inter-segment product revenues		–		–		–			–			–		–		–			–
Total operating product revenues		126		133		(7	)		(5.3%	)		261		286		(25	)		(8.7%	)
Total Bell Wireline revenues		3,043		3,073		(30	)		(1.0%	)		6,079		6,125		(46	)		(0.8%	)

Bell Wireline operating revenues decreased by 1.0% in Q2 2020 and by 0.8% in the first six months of the year, compared to the same periods last year, driven by the continued erosion in voice revenues and lower product revenues moderated by the growth in data service revenues.

Bell Wireline operating service revenues declined by 0.8% in Q2 2020 and by 0.4% in the first half of the year, compared to the same periods last year.

• Data revenues grew by 0.1% in Q2 2020 and by 0.7% in the first six months of the year, compared to the same periods in 2019, attributable to:

• Growth in retail Internet and IPTV subscribers coupled with the flow-through of pricing changes

These factors were partly offset by:

• Greater acquisition, retention and bundle discounts on residential services

• The continued decline in our satellite TV subscriber base

• Reduced business solutions services revenues, attributable to delays in accessing customer sites due to the COVID-19 pandemic

• The waiving of residential Internet overage charges throughout the quarter as a result of the COVID-19 pandemic

• Ongoing legacy data erosion • Delayed implementation of price increases that were planned in the quarter, due to the COVID-19 pandemic

• Voice revenues declined by 3.8% in both Q2 2020 and the first half of the year, compared to the same periods last year, resulting from:

• Ongoing NAS line erosion due to technological substitution to wireless and Internet based services

• Large business customer conversions to Internet protocol based data services

• Delayed implementation of price increases that were planned in the quarter and other customer accommodations, due to the COVID-19 pandemic

These factors were partly offset by:

• The flow-through of pricing changes

• Greater usage of conferencing services by business customers due to the increase in the number of employees working from home as a result of the COVID-19 pandemic

• Higher sales of international wholesale long distance minutes

Bell Wireline operating product revenues declined by 5.3% in Q2 2020 and by 8.7% in the first half of the year, compared to the same periods in 2019, due to difficulties accessing customer premises and vendor delays relating to equipment purchases as a result of the COVID-19 pandemic. Additionally, strong sales in Q1 2019, primarily in the government sector, also contributed to the year-over-year decline experienced in the first half of the year.

OPERATING COSTS AND ADJUSTED EBITDA

	Q2 2020			Q2 2019			$ CHANGE			% CHANGE			YTD 2020			YTD 2019			$ CHANGE			% CHANGE
Operating costs		(1,764	)		(1,723	)		(41	)		(2.4%)			(3,465	)		(3,450	)		(15	)		(0.4%)
Adjusted EBITDA		1,279			1,350			(71	)		(5.3%)			2,614			2,675			(61	)		(2.3%)
Adjusted EBITDA margin		42.0	%		43.9	%					(1.9) p	ts		43.0	%		43.7	%					(0.7) p	ts

Bell Wireline operating costs increased by 2.4% in Q2 2020 and by 0.4% in the first half of the year, compared to the same periods last year, resulting from:

• Higher costs attributable to the COVID-19 pandemic including greater donations, employee redeployment costs, purchase of PPE and incremental building cleaning costs and supplies

• Greater bad debt expense driven by increased financial difficulties experienced by customers as a result of the COVID-19 pandemic

• Greater pension expense reflecting a higher defined benefit cost driven by a lower discount rate

These factors were partly offset by:

• Lower labour costs driven by workforce reductions, fewer call volumes to our customer service centres, and vendor contract savings

• Reduced advertising, sales promotion and employee travel spend along with delayed sponsorships due to the COVID-19 pandemic

• Lower TV programming and content costs mainly associated with subscriber declines

• Reduced cost of goods sold attributable to fewer product sales

20             BCE Inc. 2020 Second Quarter Shareholder Report

3 MD&A Business segment analysis – Bell Wireline

Bell Wireline adjusted EBITDA declined by 5.3% in Q2 2020 and by 2.3% in the first six months of 2020, compared to the same periods in 2019, driven by both lower revenues and higher operating costs. Adjusted EBITDA margin decreased to 42.0% in Q2 2020 and to 43.0% in the first half of the year, compared to the 43.9% and 43.7%, respectively, achieved during the same periods in 2019, reflecting higher operating costs primarily related to the COVID-19 pandemic combined with lower service revenue flow-through.

BELL WIRELINE OPERATING METRICS

The net subscriber activity presented below is net of provisions recorded in Q2 2020 due to the COVID-19 pandemic for non-paying customers who have not been disconnected.

DATA

Retail high-speed Internet

	Q2 2020		Q2 2019		CHANGE			% CHANGE		YTD 2020		YTD 2019		CHANGE			% CHANGE
Retail net activations		19,023		19,414		(391	)		(2.0%)		41,618		42,085		(467	)		(1.1%)
Retail subscribers		3,597,219		3,461,825		135,394			3.9%		3,597,219		3,461,825		135,394			3.9%

Retail high-speed Internet subscriber net activations declined by 2.0% in Q2 2020 and by 1.1% in the first six months of the year, compared to the same periods in 2019, driven by lower retail business net activations from the temporary closure of small businesses due to the COVID-19 pandemic. This was offset in part by greater retail residential net additions due to higher activations in our expanding fixed wireless-to-the-premise (WTTP) footprint, coupled with fewer deactivations as a result of the COVID-19 pandemic, and fewer customers coming off of promotional offers, moderated in part by lower activations from the temporary closure of retail distribution channels as a result of the COVID-19 pandemic.

Retail high-speed Internet subscribers totaled 3,597,219 at June 30, 2020, up 3.9% from the end of Q2 2019.

Retail TV

	Q2 2020			Q2 2019			CHANGE			% CHANGE		YTD 2020			YTD 2019			CHANGE			% CHANGE
Retail net subscriber (losses) activations		(15,544	)		2,350			(17,894	)		(761.4%)		(34,099	)		790			(34,889	)		n.m.
IPTV		(3,604	)		16,775			(20,379	)		(121.5%)		(752	)		37,691			(38,443	)		(102.0%)
Satellite		(11,940	)		(14,425	)		2,485			17.2%		(33,347	)		(36,901	)		3,554			9.6%
Total retail subscribers		2,738,365			2,767,201			(28,836	)		(1.0%)		2,738,365			2,767,201			(28,836	)		(1.0%)
IPTV		1,766,430			1,713,397			53,033			3.1%		1,766,430			1,713,397			53,033			3.1%
Satellite		971,935			1,053,804			(81,869	)		(7.8%)		971,935			1,053,804			(81,869	)		(7.8%)

n.m.: not meaningful

Retail IPTV net subscriber losses were unfavourable by 20,379 in Q2 2020, and by 38,443 in the first six months of the year, compared to the same periods last year, due to reduced promotional offers and the temporary closure of retail distribution channels as a result of the COVID-19 pandemic. The year-over-year decline was also impacted by maturing Fibe TV and Alt TV markets, slower new service footprint expansion, and greater substitution of traditional TV services with over-the-top (OTT) services. This was offset in part by fewer deactivations as a result of the COVID-19 pandemic.

Retail satellite TV net customer losses improved by 17.2% in Q2 2020 and by 9.6% in the first half of the year, compared to the same periods in 2019, due to fewer deactivations as a result of the COVID-19 pandemic, and reflect a more mature subscriber base geographically better-suited for satellite TV service.

Total retail TV net customer losses (IPTV and satellite TV combined) were unfavourable by 17,894 in Q2 2020, and by 34,889 in the first six months of 2020, compared to the same periods last year, due to higher IPTV net losses, moderated by fewer satellite TV net losses.

Retail IPTV subscribers at June 30, 2020 totaled 1,766,430, up 3.1% from 1,713,397 subscribers reported at the end of Q2 2019.

Retail satellite TV subscribers at June 30, 2020 totaled 971,935, down 7.8% from 1,053,804 subscribers reported at the end of Q2 2019.

Total retail TV subscribers (IPTV and satellite TV combined) at June 30, 2020 were 2,738,365, representing a 1.0% decline from 2,767,201 subscribers at the end of Q2 2019.

VOICE

	Q2 2020			Q2 2019			CHANGE			% CHANGE		YTD 2020			YTD 2019			CHANGE			% CHANGE
Retail residential NAS lines net losses		(48,405	)		(72,780	)		24,375			33.5%		(110,000	)		(139,559	)		29,559			21.2%
Retail residential NAS lines		2,587,483			2,821,249			(233,766	)		(8.3%)		2,587,483			2,821,249			(233,766	)		(8.3%)

Retail residential NAS net losses improved by 33.5% in Q2 2020, and by 21.2% in the first half of the year, compared to the same periods in 2019, driven by reduced deactivations primarily due to the COVID-19 pandemic, along with a fewer number of customers with expired promotional offers. This was partly offset by the ongoing substitution to wireless and Internet-based technologies and the impact of the temporary closure of retail distribution channels as a result of the COVID-19 pandemic.

Retail residential NAS subscribers at June 30, 2020 of 2,587,483 declined by 8.3%, compared to the end of Q2 2019. This represented an improvement over the 8.8% rate of erosion experienced in the same period in 2019, due to fewer deactivations primarily as a result of the COVID-19 pandemic.

BCE Inc. 2020 Second Quarter Shareholder Report         21

3 MD&A Business segment analysis – Bell Media

3.3    Bell Media

KEY BUSINESS DEVELOPMENTS

ACQUISITION OF V NETWORK AND NOOVO.CA COMPLETED

On May 15, 2020, Bell welcomed French-language conventional TV network V and the ad-supported video-on-demand (VOD) service Noovo.ca to its Bell Media segment with the completion of their acquisition from Groupe V Média. The acquisition strengthens choice for TV viewers in Québec while enhancing investment in French-language content creation. Karine Moses, President, Bell Media Québec and Bell’s Vice Chair, Québec, leads the Montréal-based team responsible for the day-to-day operations of V and Noovo.ca. The acquisition of V underscores Bell Media’s plan to increase the production of original local content in Québec, and aligns with the reorganization of the company’s French-language original programming teams under Suzane Landry, Vice-President, French-Language Content Development and Programming. V has TV stations in Montréal, Québec City, Saguenay, Sherbrooke, and Trois-Rivières, and has affiliate stations in Gatineau, Rivière-du-Loup and Val-d’Or. Noovo.ca is an ad-supported VOD service that allows viewers to get the latest entertainment from V including unique video, access to stars, and blog posts.

CTV IS CANADA’S MOST-WATCHED NETWORK FOR 19TH STRAIGHT YEAR

CTV ended the core 2019/2020 TV viewing season (fall, winter and spring) as the most-watched Canadian TV network in primetime for the 19th year in a row. Final data from Numeris, a primary provider of viewership figures for TV and radio outlets in Canada, confirmed that CTV delivered the most Top 10, Top 20, and Top 30 programs with total viewers, adult 18-49, and adult 25-54 demographics. In the key adult 25-54 demographic, CTV’s advantage has grown 8% in primetime, expanding its lead over its closest competitor to 30%.

BELL MEDIA RECOGNIZED FOR EXCELLENCE IN PROGRAMMING

Bell Media and its production partners were honoured with 57 awards by the Academy of Canadian Cinema and Television at the 2020 Canadian Screen Awards, which recognizes excellence in Canadian TV, film and digital media productions. Overall, Bell Media was recognized with 37 awards in the TV and digital categories, more than any other private broadcaster, with wins in major categories including Best Drama Series, Best Reality/Competition Program or Series and Best National Newscast. TSN once again won more awards than all other sports broadcasters combined, scoring six wins. Bell Media supported films won 18 awards, including Best Motion Picture and Performance by an Actress in a Leading Role.

FINANCIAL PERFORMANCE ANALYSIS

Q2 2020 PERFORMANCE HIGHLIGHTS

Bell Media	Bell Media
Revenues	Adjusted EBITDA
(in $ millions)	(in $ millions)
Bell Media	Bell Media
Revenues	Adjusted EBITDA
(in $ millions)	(in $ millions)

22             BCE Inc. 2020 Second Quarter Shareholder Report

3 MD&A Business segment analysis – Bell Media

BELL MEDIA RESULTS

REVENUES

	Q2 2020		Q2 2019		$ CHANGE			% CHANGE		YTD 2020		YTD 2019		$ CHANGE			% CHANGE
Total external revenues		482		737		(255	)		(34.6%)		1,140		1,377		(237	)		(17.2%)
Inter-segment revenues		97		105		(8	)		(7.6%)		191		210		(19	)		(9.0%)
Total Bell Media revenues		579		842		(263	)		(31.2%)		1,331		1,587		(256	)		(16.1%)

Bell Media operating revenues decreased by 31.2% in Q2 2020 and 16.1% year to date, compared to the same periods last year, primarily due to lower advertising revenues.

• Advertising revenues decreased in Q2 2020 and in the first six months of 2020, compared to the same periods in 2019, mainly due to:

• The continued adverse impact across all advertising platforms (TV, radio and out-of-home (OOH)) from the COVID-19 pandemic due to customer cancellations attributable to the temporary closure of businesses, as well as the cancellation and/or postponement of sporting events, which significantly impacted specialty TV

• Lower conventional TV advertising revenues from the ongoing shift in customer spending to OTT and digital platforms

• The benefit in Q2 2019 from the broadcast of the Raptors National Basketball Association (NBA) playoffs and finals

Year-to-date 2020 advertising revenues were however favourably impacted by the return of simultaneous substitution for the broadcast of Super Bowl LIV in February 2020 subsequent to the decision by the Supreme Court of Canada to overturn the Canadian Radio-television and Telecommunications Commission (CRTC)’s decision banning simultaneous substitution during the Super Bowl.

• Subscriber revenues declined in Q2 2020 but were essentially unchanged in the first six months of the year, compared to the same periods last year. The Q2 decline was driven by subscriber erosion across multiple channels, although the rate of subscriber decline was stable during the pandemic. This was partly offset by growth in direct-to-consumer subscribers from Crave, our pay TV and streaming service.

OPERATING COSTS AND ADJUSTED EBITDA

	Q2 2020			Q2 2019			$ CHANGE			% CHANGE			YTD 2020			YTD 2019			$ CHANGE			% CHANGE
Operating costs		(406	)		(588	)		182			31.0%			(1,003	)		(1,168	)		165			14.1%
Adjusted EBITDA		173			254			(81	)		(31.9%)			328			419			(91	)		(21.7%)
Adjusted EBITDA margin		29.9	%		30.2	%					(0.3)	pts		24.6	%		26.4	%					(1.8)	pts

Bell Media operating costs decreased by 31.0% in Q2 2020 and by 14.1% in the first six months of the year, compared to the same periods in 2019, driven by:

• Lower costs mainly related to the COVID-19 pandemic including rights and production costs savings from the postponements and/or cancellations of sporting events, as well as foreign and Canadian programming savings due to production shutdowns and delays

• Lower labour costs mainly as a result of the CEWS

• Reduced spending on advertising and sales promotions

These factors were partly offset by:

• Continued investment in content for our Crave services

• Higher bad debt expense driven by increased financial difficulties experienced by customers as a result of the COVID-19 pandemic

Year-to-date 2020 operating costs also included sports broadcast rights related to the broadcast of the Super Bowl in February 2020.

Bell Media adjusted EBITDA decreased by 31.9% in Q2 2020 and by 21.7% in the first six months of the year, compared to the same periods last year, due to the decline in revenues, moderated by lower operating costs.

BCE Inc. 2020 Second Quarter Shareholder Report         23

4 MD&A Financial and capital management

4    Financial and capital management

This section tells you how we manage our cash and capital resources to carry out our strategy and deliver financial results. It provides an analysis of our financial condition, cash flows and liquidity on a consolidated basis.

4.1   Net debt ⁽¹⁾

	JUNE 30, 2020			DECEMBER 31, 2019			$ CHANGE			% CHANGE
Debt due within one year		2,584			3,881			(1,297	)		(33.4%)
Long-term debt		25,024			22,415			2,609			11.6%
Preferred shares (2)		2,002			2,002			–			–
Cash and cash equivalents		(1,547	)		(145	)		(1,402	)		n.m.
Net debt		28,063			28,153			(90	)		(0.3%)

n.m.: not meaningful

(1) Net debt is a non-GAAP financial measure and does not have any standardized meaning under IFRS. Therefore, it is unlikely to be comparable to similar measures presented by other issuers. See section 8.2, Non-GAAP financial measures and key performance indicators (KPIs) – Net debt, in this MD&A for more details, including a reconciliation to the most comparable IFRS financial measure.

(2) 50% of outstanding preferred shares of $4,004 million in 2020 and 2019 are classified as debt consistent with the treatment by some credit rating agencies.

The increase of $1,312 million in total debt, comprised of debt due within one year and long-term debt, was due to:

• the issuance by Bell Canada of Series M-51, Series M-47 and Series M-52 MTN debentures, with total principal amounts of $1.25 billion, $1 billion and $1 billion in Canadian dollars, respectively

Partly offset by:

• the early redemption of Series M-24 MTN debentures with a total principal amount of $500 million

• a decrease in our notes payable (net of issuances) of $1,434 million

• a net decrease of $4 million due to lower lease liabilities and other debt, partly offset by an increase in foreign exchange on hedged U.S. debt

Additionally, during the first half of 2020, Bell Canada drew $1,450 million in U.S. dollars ($2,035 million in Canadian dollars) under its committed credit facilities. In Q2 2020, Bell Canada repaid all of the U.S dollar borrowings under such facilities.

The increase in cash and cash equivalents of $1,402 million was mainly due to:

• $2,222 million of free cash flow

• $892 million of debt issuances (net of repayments)

Partly offset by:

• $1,469 million of dividends paid on BCE common shares

• $169 million paid for the purchase on the open market of BCE common shares for the settlement of share-based payments

4.2   Outstanding share data

COMMON SHARES OUTSTANDING	NUMBER OF SHARES
Outstanding, January 1, 2020		903,908,182
Shares issued under employee stock option plan		419,546
Outstanding, June 30, 2020		904,327,728

STOCK OPTIONS OUTSTANDING	NUMBER OF OPTIONS			WEIGHTED AVERAGE EXERCISE PRICE ($)
Outstanding, January 1, 2020		12,825,541			57
Granted		3,410,150			65
Exercised (1)		(419,546	)		53
Forfeited		(41,845	)		60
Outstanding, June 30, 2020		15,774,300			59
Exercisable, June 30, 2020		5,299,256			58

(1) The weighted average market share price for options exercised during the six months ended June 30, 2020 was $64.

24             BCE Inc. 2020 Second Quarter Shareholder Report

4 MD&A Financial and capital management

4.3   Cash flows

	Q2 2020			Q2 2019			$ CHANGE			% CHANGE			YTD 2020			YTD 2019			$ CHANGE			% CHANGE
Cash flows from operating activities		2,562			2,093			469			22.4	%		4,013			3,609			404			11.2	%
Capital expenditures		(900	)		(967	)		67			6.9	%		(1,677	)		(1,815	)		138			7.6	%
Cash dividends paid on preferred shares		(33	)		(37	)		4			10.8	%		(69	)		(63	)		(6	)		(9.5	%)
Cash dividends paid by subsidiaries to non-controlling interest		(12	)		(12	)		–			–			(26	)		(39	)		13			33.3	%
Acquisition and other costs paid		11			21			(10	)		(47.6	%)		20			50			(30	)		(60.0	%)
Cash from discontinued operations (included in cash flows from operating activities)		(17	)		(22	)		5			22.7	%		(39	)		(47	)		8			17.0	%
Free cash flow		1,611			1,076			535			49.7	%		2,222			1,695			527			31.1	%
Cash from discontinued operations (included in cash flows from operating activities)		17			22			(5	)		(22.7	%)		39			47			(8	)		(17.0	%)
Business acquisitions		(23	)		(50	)		27			54.0	%		(23	)		(50	)		27			54.0	%
Acquisition and other costs paid		(11	)		(21	)		10			47.6	%		(20	)		(50	)		30			60.0	%
Other investing activities		(13	)		32			(45	)		n.m.			(19	)		8			(27	)		n.m.
Cash from discontinued operations (included in cash flows from investing activities)		(8	)		(5	)		(3	)		(60.0	%)		(15	)		(7	)		(8	)		n.m.
Net (repayment) issuance of debt instruments		(1,850	)		85			(1,935	)		n.m.			892			480			412			85.8	%
Issue of common shares		–			44			(44	)		(100.0	%)		22			64			(42	)		(65.6	%)
Purchase of shares for settlement of share-based payments		(75	)		(10	)		(65	)		n.m.			(169	)		(86	)		(83	)		(96.5	%)
Cash dividends paid on common shares		(753	)		(712	)		(41	)		(5.8	%)		(1,469	)		(1,390	)		(79	)		(5.7	%)
Other financing activities		(25	)		(33	)		8			24.2	%		(55	)		(39	)		(16	)		(41.0	%)
Cash from discontinued operations (included in cash flows from financing activities)		(2	)		(2	)		–			–			(3	)		(3	)		–			–
Net (decrease) increase in cash and cash equivalents		(1,132	)		426			(1,558	)		n.m.			1,402			669			733			n.m.

n.m.: not meaningful

CASH FLOWS FROM OPERATING ACTIVITIES AND FREE CASH FLOW

Cash flows from operating activities in the second quarter and first half of 2020 increased by $469 million and $404 million, respectively, compared to the same periods last year, mainly due to higher cash from working capital, as a result of strong cash collections as well as delayed tax payments due to government relief measures related to COVID-19.

Free cash flow in the second quarter and on a year-to-date basis in 2020 increased by $535 million and $527 million, respectively, compared to the same periods last year, mainly due to higher cash flows from operating activities, excluding cash from discontinued operations and acquisition and other costs paid, and lower capital expenditures.

CAPITAL EXPENDITURES

	Q2 2020			Q2 2019			$ CHANGE			% CHANGE			YTD 2020			YTD 2019			$ CHANGE			% CHANGE
Bell Wireless		182			159			(23	)		(14.5	%)		312			307			(5	)		(1.6	%)
Capital intensity ratio		9.5	%		7.4	%					(2.1	) pts		7.9	%		7.2	%					(0.7	) pts
Bell Wireline		694			784			90			11.5	%		1,316			1,459			143			9.8	%
Capital intensity ratio		22.8	%		25.5	%					2.7	pts		21.6	%		23.8	%					2.2	pts
Bell Media		24			24			–			–			49			49			–			–
Capital intensity ratio		4.1	%		2.9	%					(1.2	) pts		3.7	%		3.1	%					(0.6	) pts
BCE		900			967			67			6.9	%		1,677			1,815			138			7.6	%
Capital intensity ratio		16.8	%		16.4	%					(0.4	) pts		15.3	%		15.7	%					0.4	pts

BCE Inc. 2020 Second Quarter Shareholder Report         25

4 MD&A Financial and capital management

BCE capital expenditures of $900 million in Q2 2020 and $1,677 million year to date declined by $67 million and $138 million, respectively, compared to the same periods last year. Capital expenditures as a percentage of revenue (capital intensity ratio) increased by 0.4 pts in the quarter to 16.8%, whereas year to date, the capital intensity ratio declined 0.4 pts to 15.3%. The year-over-year decrease in capital expenditures reflected the following:

• Lower capital spending in our wireline segment of $90 million in Q2 2020 and $143 million year to date, compared to the same periods in 2019, mainly due to the slower pace of spending over the previous year, in part due to fewer new customer service installations and delayed network construction due to the COVID-19 pandemic. We continued to invest in the roll-out of our FTTP network to more homes and businesses and our fixed WTTP network to rural locations in Ontario and Québec. Additionally, we invested in network capacity enhancements to support increased demand due to the COVID-19 pandemic.

• Higher capital spending in our wireless segment of $23 million in Q2 2020 and $5 million year to date, compared to the same periods in 2019, primarily due to continued investments in our networks with the recent launch of our 5G network in June 2020 in Montreal, the Greater Toronto Area, Calgary, Edmonton and Vancouver, along with the ongoing investment in our LTE Advanced (LTE-A) network and capacity expansion to support increased demand due to the COVID-19 pandemic.

DEBT INSTRUMENTS

2020

In the second quarter of 2020, we repaid $1,850 million of debt, net of issuances. This included the repayment (net of issuances) by Bell Canada of $1,100 million in U.S. dollars ($1,544 million in Canadian dollars) under its committed credit facilities, the repayment (net of issuances) of $1,204 million of notes payable, a decrease in securitized trade receivables of $400 million and net payments of leases and other debt of $202 million, partly offset by the issuance of Series M-52 and Series M-51 MTN debentures, with total principal amounts of $1 billion and $500 million in Canadian dollars, respectively.

In the first half of 2020, we issued $892 million of debt, net of repayments. This included the issuance of Series M-51, Series M-47 and Series M-52 MTN debentures, with total principal amounts of $1,250 million, $1 billion and $1 billion in Canadian dollars, respectively, partly offset by the repayment (net of issuances) of $1,434 million of notes payable, the early redemption of Series M-24 MTN debentures with a total principal amount of $500 million and net payments of leases and other debt of $424 million. Additionally, during the first half of 2020, Bell Canada drew $1,450 million in U.S. dollars ($2,035 million in Canadian dollars) under its committed credit facilities. In Q2 2020, Bell Canada repaid all of the U.S dollar borrowings under such facilities.

2019

In the second quarter of 2019, we issued $85 million of debt, net of repayments. This included the issuances of Series M-49 MTN debentures and Series US-2 Notes with total principal amounts of $600 million in Canadian dollars and $600 million in U.S. dollars ($808 million in Canadian dollars), respectively, and the issuances (net of repayments) of $277 million of notes payable. These issuances were partly offset by the early redemption of Series M-27 MTN debentures and Series M-37 debentures in the principal amounts of $1 billion and $400 million, respectively, and net payments of lease liabilities and other debt of $200 million.

In the first half of 2019, we issued $480 million of debt, net of repayments. This included the issuances of Series M-49 MTN debentures and Series US-2 Notes with total principal amounts of $600 million in Canadian dollars and $600 million in U.S. dollars ($808 million in Canadian dollars), respectively, and the issuances (net of repayments) of $844 million of notes payable. These issuances were partly offset by the early redemption of Series M-27 MTN debentures and Series M-37 debentures in the principal amounts of $1 billion and $400 million, respectively, and net payments of lease liabilities and other debt of $372 million.

CASH DIVIDENDS PAID ON COMMON SHARES

In the second quarter of 2020, cash dividends paid on common shares increased by $41 million compared to Q2 2019, due to a higher dividend paid in Q2 2020 of $0.8325 per common share compared to $0.7925 per common share in Q2 2019.

In the first half of 2020, cash dividends paid on common shares increased by $79 million compared to 2019, due to a higher dividend paid in the first half of 2020 of $1.625 per common share compared to $1.5475 per common share for the same period last year.

4.4   Post-employment benefit plans

For the three months ended June 30, 2020, we recorded a decrease in our post-employment benefit plans and a loss, before taxes, in OCI of $2,215 million due to a lower actual discount rate of 2.8% at June 30, 2020, as compared to 4.2% at March 31, 2020, partly offset by a higher-than-expected return on plan assets in 2020.

For the six months ended June 30, 2020, we recorded an increase in our post-employment benefit plans and a gain, before taxes, in OCI of $150 million due to higher-than-expected return on plan assets in 2020, partly offset by a lower actual discount rate of 2.8% at June 30, 2020, as compared to 3.1% at December 31, 2019.

For the three and six months ended June 30, 2019, we recorded a decrease in our post-employment benefit plans and a loss, before taxes, in OCI of $311 million and $438 million, respectively. This was due to a lower actual discount rate of 3.0% at June 30, 2019, as compared to 3.3% at March 31, 2019 and 3.8% at December 31, 2018, partly offset by a higher-than-expected return on plan assets in 2019.

26             BCE Inc. 2020 Second Quarter Shareholder Report

4 MD&A Financial and capital management

4.5   Financial risk management

FAIR VALUE

The following table provides the fair value details of financial instruments measured at amortized cost in the consolidated statements of financial position.

			JUNE 30, 2020				DECEMBER 31, 2019
	CLASSIFICATION	FAIR VALUE METHODOLOGY	CARRYING VALUE		FAIR VALUE		CARRYING VALUE		FAIR VALUE
CRTC tangible benefits obligation	Trade payables and other liabilities and other non-current liabilities	Present value of estimated future cash flows discounted using observable market interest rates		12		12		29		29
CRTC deferral account obligation	Trade payables and other liabilities and other non-current liabilities	Present value of estimated future cash flows discounted using observable market interest rates		82		86		82		85
Debt securities and other debt	Debt due within one year and long-term debt	Quoted market price of debt		21,517		25,068		18,653		20,905

The following table provides the fair value details of financial instruments measured at fair value in the consolidated statements of financial position.

				FAIR VALUE
	CLASSIFICATION	CARRYING VALUE OF ASSET (LIABILITY)			QUOTED PRICES IN ACTIVE MARKETS FOR IDENTICAL ASSETS (LEVEL 1)	OBSERVABLE MARKET DATA (LEVEL 2)	(1)	NON-OBSERVABLE MARKET INPUTS (LEVEL 3)	(2)
June 30, 2020
Publicly-traded and privately-held investments (3)	Other non-current assets	122			2	–		120
Derivative financial instruments	Other current assets, trade payables and other liabilities, other non-current assets and liabilities	522			–	522		–
Maple Leaf Sports & Entertainment Ltd. (MLSE) financial liability (4)	Trade payables and other liabilities	(138	)		–	–		(138	)
Other	Other non-current assets and liabilities	91			2	147		(58	)
December 31, 2019
Publicly-traded and privately-held investments (3)	Other non-current assets	129			2	–		127
Derivative financial instruments	Other current assets, trade payables and other liabilities, other non-current assets and liabilities	165			–	165		–
MLSE financial liability (4)	Trade payables and other liabilities	(135	)		–	–		(135	)
Other	Other non-current assets and liabilities	71			1	128		(58	)

(1) Observable market data such as equity prices, interest rates, swap rate curves and foreign currency exchange rates.

(2) Non-observable market inputs such as discounted cash flows and earnings multiples. A reasonable change in our assumptions would not result in a significant increase (decrease) to our level 3 financial instruments.

(3) Unrealized gains and losses are recorded in OCI and impairment charges are recorded in Impairment of assets in the income statements.

(4) Represents BCE’s obligation to repurchase the BCE Master Trust Fund’s (Master Trust Fund) 9% interest in MLSE at a price not less than an agreed minimum price should the Master Trust Fund exercise its put option. The obligation to repurchase is marked to market each reporting period and the gain or loss is recognized in Other (expense) income in the consolidated income statements. The option has been exercisable since 2017.

CREDIT RISK

We are exposed to credit risk from operating activities and certain financing activities, the maximum exposure of which is represented by the carrying amounts reported in the statements of financial position.

We are exposed to credit risk if counterparties to our trade receivables and derivative instruments are unable to meet their obligations. The concentration of credit risk from our customers is minimized because we have a large and diverse customer base. There was minimal credit risk relating to derivative instruments at June 30, 2020 and December 31, 2019. We deal with institutions that have investment-grade credit ratings, and as such we expect that they will be able to meet their obligations. We regularly monitor our credit risk and credit exposure.

The following table provides the change in allowance for doubtful accounts for trade receivables, which reflects an increase for the period ended June 30, 2020, mainly as a result of the impact of the COVID-19 pandemic.

	NOTE
Balance, January 1, 2020		(62	)
Additions		(90	)
Usage		48
Balance, June 30, 2020		(104	)

In many instances, trade receivables are written off directly to bad debt expense if the account has not been collected after a predetermined period of time.

BCE Inc. 2020 Second Quarter Shareholder Report         27

4 MD&A Financial and capital management

The following table provides further details on trade receivables, net of allowance for doubtful accounts.

	JUNE 30, 2020		DECEMBER 31, 2019
Trade receivables not past due		1,926		2,082
Trade receivables past due
Under 60 days		395		541
60 to 120 days		252		232
Over 120 days		112		64
Trade receivables, net of allowance for doubtful accounts		2,685		2,919

MARKET RISK

CURRENCY EXPOSURES

We use forward contracts, options and cross currency basis swaps to manage foreign currency risk related to anticipated purchases and sales and certain foreign currency debt.

During the first half of 2020, we entered into foreign exchange forward contracts with a notional amount of $1,453 million in U.S. dollars ($2,039 million in Canadian dollars) to hedge the foreign currency risk associated with amounts drawn under our $4 billion Canadian dollar committed credit facilities. These foreign exchange contracts have matured at June 30, 2020. A loss of $30 million and $14 million, for the three and six months ended June 30, 2020, respectively, relating to these foreign exchange forward contracts is recognized in Other (expense) income in the consolidated income statements, which offsets the foreign currency gain on the repayment of drawdowns under the credit facilities.

A 10% depreciation (appreciation) in the value of the Canadian dollar relative to the U.S. dollar would result in a gain (loss) of $1 million ($55 million) recognized in net earnings from continuing operations at June 30, 2020 and a gain (loss) of $228 million recognized in Other comprehensive (loss) income from continuing operations at June 30, 2020, with all other variables held constant.

A 10% depreciation (appreciation) in the value of the Canadian dollar relative to the Philippines Peso would result in a gain (loss) of $2 million in Other comprehensive (loss) income from continuing operations at June 30, 2020, with all other variables held constant.

The following table provides further details on our outstanding foreign currency forward contracts and options as at June 30, 2020.

TYPE OF HEDGE	BUY CURRENCY		AMOUNT TO RECEIVE		SELL CURRENCY		AMOUNT TO PAY		MATURITY		HEDGED ITEM
Cash flow		USD		200		CAD		279		2020	Commercial paper
Cash flow		USD		370		CAD		480		2020	Anticipated transactions
Cash flow		PHP		1,012		CAD		26		2020	Anticipated transactions
Cash flow		USD		588		CAD		768		2021	Anticipated transactions
Economic		USD		26		CAD		36		2021	Anticipated transactions
Economic – put options		USD		209		CAD		284		2020	Anticipated transactions
Economic – put options		USD		214		CAD		284		2021	Anticipated transactions
Economic – call options		USD		149		CAD		201		2020	Anticipated transactions
Economic – call options		CAD		87		USD		60		2020	Anticipated transactions
Economic – call options		USD		47		CAD		65		2021	Anticipated transactions
Economic – call options		CAD		68		USD		47		2021	Anticipated transactions
Economic – options (1)		USD		60		CAD		81		2020	Anticipated transactions
Economic – options (1)		USD		120		CAD		161		2021	Anticipated transactions

(1) Foreign currency options with a leverage provision and a profit cap limitation.

INTEREST RATE EXPOSURES

During Q1 2020, we entered into a series of interest rate options to economically hedge the dividend rate resets on $582 million of our preferred shares having varying reset dates in 2021. The fair value of these interest rate options at June 30, 2020 was a net liability of $5 million, recognized in Other current assets, Trade payables and other liabilities, Other non-current assets and Other non-current liabilities in the consolidated statements of financial position. A loss of $3 million and $5 million for the three and six months ended June 30, 2020, respectively, relating to these interest rate options is recognized in Other (expense) income in the consolidated income statements.

A 1% increase (decrease) in interest rates would result in a decrease (increase) of $31 million ($38 million) in net earnings from continuing operations at June 30, 2020.

28             BCE Inc. 2020 Second Quarter Shareholder Report

4 MD&A Financial and capital management

EQUITY PRICE EXPOSURES

We use equity forward contracts on BCE’s common shares to economically hedge the cash flow exposure related to the settlement of equity settled share-based compensation plans and the equity price risk related to a cash-settled share-based payment plan. The fair value of our equity forward contracts at June 30, 2020 was a net liability of $39 million, recognized in Other current assets, Trade payables and other liabilities, Other non-current assets and Other non-current liabilities in the consolidated statements of financial position. The fair value of our equity forward contracts at December 31, 2019 was an asset of $40 million recognized in Other current assets and Other non-current assets in the consolidated statements of financial position. A loss of $9 million and $37 million for the three and six months ended June 30, 2020, respectively, relating to these equity forward contracts is recognized in Other (expense) income in the consolidated income statements.

A 5% increase (decrease) in the market price of BCE’s common shares at June 30, 2020 would result in a gain (loss) of $40 million recognized in net earnings from continuing operations, with all other variables held constant.

COMMODITY PRICE EXPOSURE

In Q1 2020, we entered into fuel swaps to economically hedge the purchase cost of fuel in 2020 and 2021. The fair value of our fuel swaps at June 30, 2020 was an asset of $2 million included in Other current assets and Other non-current assets in the consolidated statements of financial position. A gain of $6 million and $2 million for the three and six months ended June 30, 2020, respectively, is recognized in Other (expense) income in the consolidated income statements.

A 25% increase (decrease) in the market price of fuel at June 30, 2020 would result in a gain (loss) of $4 million recognized in net earnings from continuing operations, with all other variables held constant.

4.6   Credit ratings

BCE’s and Bell Canada’s key credit ratings remain unchanged from those described in the BCE 2019 Annual MD&A.

4.7   Liquidity

At June 30, 2020, we had a higher than normal cash and cash equivalents balance on hand to increase liquidity and preserve financial flexibility in light of the COVID-19 pandemic. Total available liquidity at June 30, 2020 was $5.4 billion, comprised of $1.5 billion in cash and cash equivalents, $3.5 billion available under our $4 billion committed bank credit facilities given the issuance of $546 million of commercial paper, and $400 million available under our securitization programs.

We expect our available liquidity to be sufficient to meet our cash requirements for the remainder of 2020, including for capital expenditures, post-employment benefit plans funding, dividend payments, the payment of contractual obligations, on-going operations, acquisitions and planned growth. Bell Canada has no public debt maturities in 2020.

We expect additional liquidity to be added from the sale by BCE of substantially all of its data centre operations to Equinix, which is expected to close in the second half of 2020, subject to customary closing conditions.

We continuously monitor the rapidly changing COVID-19 pandemic for impacts on operations, capital markets and the Canadian economy with the objective of maintaining adequate liquidity.

BCE Inc. 2020 Second Quarter Shareholder Report         29

5 MD&A Quarterly financial information

5    Quarterly financial information

BCE’s Q2 2020 Financial Statements were prepared in accordance with IFRS, as issued by the International Accounting Standards Board (IASB), under IAS 34, Interim Financial Reporting and were approved by BCE’s board of directors on August 5, 2020.

On June 1, 2020, BCE announced that it had entered into an agreement to sell substantially all of its data centre operations in an all-cash transaction valued at $1.04 billion. The transaction is expected to close in the second half of 2020, subject to customary closing conditions. As a result, we have reclassified amounts related to the announced sale for the previous periods to discontinued operations in our consolidated income statements and consolidated statements of cash flows to make them consistent with the presentation for the current period. We have also reclassified the assets and liabilities of the data centre operations to be sold as held for sale in our consolidated statements of financial position at June 30, 2020, measured at their carrying amount, which is lower than the estimated fair value less costs to sell. Property, plant and equipment and intangible assets included in assets held for sale are no longer depreciated or amortized effective June 1, 2020.

As required, we adopted IFRS 16 – Leases effective January 1, 2019. We adopted IFRS 16 using a modified retrospective approach whereby the financial statements of prior periods presented were not restated and continue to be reported under IAS 17 – Leases, as permitted by the specific transition provisions of IFRS 16. The cumulative effect of the initial adoption of IFRS 16 was reflected as an adjustment to the deficit at January 1, 2019.

The following table, which was also prepared in accordance with IFRS, shows selected consolidated financial data of BCE for the eight most recent completed quarters.

	2020						2019												2018
	Q2			Q1			Q4			Q3			Q2			Q1			Q4			Q3
Operating revenues
Service		4,800			5,018			5,235			5,141			5,190			5,000			5,188			5,071
Product		554			622			1,040			799			699			689			984			760
Total operating revenues		5,354			5,640			6,275			5,940			5,889			5,689			6,172			5,831
Adjusted EBITDA		2,331			2,418			2,484			2,568			2,572			2,382			2,370			2,432
Severance, acquisition and other costs		(22	)		(16	)		(28	)		(23	)		(39	)		(24	)		(58	)		(54	)
Depreciation		(869	)		(858	)		(854	)		(852	)		(879	)		(873	)		(790	)		(771	)
Amortization		(234	)		(230	)		(224	)		(225	)		(220	)		(217	)		(212	)		(216	)
Net earnings		294			733			723			922			817			791			642			867
Net earnings attributable to common shareholders from continuing operations		233			675			667			859			754			731			604			806
Net earnings attributable to common shareholders		237			680			672			867			761			740			606			814
Net earnings from continuing operations per common share
Basic and diluted		0.26			0.74			0.73			0.96			0.84			0.81			0.67			0.89
Net earnings per common share
Basic and diluted		0.26			0.75			0.74			0.96			0.85			0.82			0.68			0.90
Weighted average number of common shares outstanding – basic (millions)		904.3			904.1			903.8			901.4			899.5			898.4			898.1			898.0

30             BCE Inc. 2020 Second Quarter Shareholder Report

6 MD&A Regulatory Environment

6   Regulatory Environment

TELECOMMUNICATIONS ACT

REVIEW OF NETWORK CONFIGURATION FOR DISAGGREGATED WHOLESALE ACCESS

On June 11, 2020, the CRTC launched a proceeding to reconsider the network configuration of the disaggregated wholesale high-speed access service mandated of Bell Canada and large cable carriers. The consultation aims to adopt a model applicable to wholesale providers across the country. It may also result in the adoption of a different level of disaggregation for Bell Canada than had been mandated in 2015 as discussed in the BCE 2019 Annual MD&A under section 8.2, Telecommunications Act – Mandated disaggregated wholesale access to FTTP networks. The launch of this new consultation has suspended the finalization of the rates of Bell Canada’s existing disaggregated high-speed access service, which will remain at their current interim level until further notice. The new consultation has also closed the application by the Canadian Network Operators Consortium Inc. (CNOC), discussed in the BCE 2019 Annual MD&A under section 8.2, Telecommunications Act – Proposed expansion of aggregated wholesale access regime to FTTP networks, to obtain mandated access via aggregated services to FTTP facilities and to introduce a wholesale access service with an intermediate level of aggregation. Revisions that facilitate reseller access to disaggregated wholesale access and/or the mandating of final rates that are materially different from the rates Bell Canada has proposed could undermine the incentives for facilities-based digital infrastructure providers to invest in next-generation wireline networks, improve the business position of resellers of high-speed access services and adversely impact our financial results.

REVIEW OF THE APPROACH TO RATE SETTING FOR WHOLESALE TELECOMMUNICATIONS SERVICES

On April 24, 2020, the CRTC launched a proceeding to reconsider the current approach used by the CRTC to set rates for mandated wholesale telecommunications services. The proceeding aims to consider the most appropriate methodology for ensuring that such rates are just and reasonable and are established in an efficient manner. This may result in the adoption of a new costing approach that substantially differs from the current ‘Phase II’ costing methodology. Phase II is a prospective incremental costing methodology currently used by the CRTC to determine rates for regulated wholesale services. If the current Phase II costing methodology is revised or replaced, the impact of such changes may result in more efficient and transparent rate setting, or it may result in a rate-setting process that favours resellers and undermines incentives for facilities-based investment. At this time, it is unclear what impact, if any, the results of the proceeding could have on our business and financial results.

RADIOCOMMUNICATION ACT

3500 MEGAHERTZ (MHZ) SPECTRUM AUCTION

On March 5, 2020, Innovation, Science and Economic Development Canada (ISED) released its Policy and Licensing Framework for Spectrum in the 3500 MHz Band, which will govern the auction of spectrum licences in the 3500 MHz band. Initially scheduled to begin on December 15, 2020, bidding in the auction has been rescheduled to begin on June 15, 2021.

BCE Inc. 2020 Second Quarter Shareholder Report         31

7 MD&A Business risks

7   Business risks

A risk is the possibility that an event might happen in the future that could have a negative effect on our business, financial condition, liquidity, financial results or reputation. Part of managing our business is to understand what these potential risks could be and to mitigate them where we can.

The actual effect of any event could be materially different from what we currently anticipate. The risks described in this MD&A are not the only ones that could affect us. Additional risks and uncertainties not currently known to us or that we currently deem to be immaterial may also materially and adversely affect our business, financial condition, liquidity, financial results or reputation.

In the BCE 2019 Annual MD&A, we provided a detailed review of risks that could affect our business, financial condition, liquidity, financial results or reputation and that could cause actual results or events to differ materially from our expectations expressed in, or implied by, our forward-looking statements. This detailed description of risks is updated in the BCE 2020 First Quarter MD&A and in this MD&A. The risks described in the BCE 2019 Annual MD&A, as updated in the BCE 2020 First Quarter MD&A and in this MD&A, include, without limitation, risks associated with the following matters. Any of those risks including, without limitation, the risks related to the COVID-19 pandemic, could cause actual results or events to differ materially from our expectations expressed in, or implied by, the forward-looking statements set out in this MD&A.

• Pandemics, epidemics and other public health risks including, in particular, the COVID-19 pandemic, and the uncertainty of its severity and duration, including possible resurgences in the number of cases and the potential re-introduction of emergency measures, and the adverse effects thereof on the economy, including the significant disruptions in retail and commercial activities, impacting, among others, the demand for and prices of our products and services, the ability of our customers to pay for our products and services, our ability to maintain operational networks and provide products and services to customers, and the ability of our suppliers to provide us with the products and services we need to operate our business

• The inability to access adequate sources of capital and generate sufficient cash flows from operating activities to meet our cash requirements, including, without limitation, to fund capital expenditures, pay dividends and provide for planned growth

• The failure to maintain operational networks in the context of significant increases in capacity demands on our wireline, wireless and broadcast media networks

• The risk that we may need to make significant capital expenditures in order to provide additional capacity and reduce network congestion, and implement additional sanitation and safety procedures as a result of the COVID-19 pandemic

• The inability to drive a positive customer experience in all aspects of our engagement with customers

• Labour disruptions and shortages

• Our dependence on third-party suppliers, outsourcers and consultants to provide an uninterrupted supply of the products and services we need to operate our business, deploy new network and other technologies and offer new products and services, as well as to comply with various obligations

• Uncertainty as to whether dividends will be declared by BCE’s board of directors or whether the dividend on common shares will be increased

• Pension obligation volatility and increased contributions to post-employment benefit plans

• Regulatory initiatives, proceedings and decisions, and government consultations, positions, actions and measures that affect us and influence our business, including, in particular, those relating to the COVID-19 pandemic, mandatory access to networks, spectrum auctions, the imposition of consumer-related codes of conduct, approval of acquisitions, broadcast and spectrum licensing, foreign ownership requirements, and control of copyright piracy

• The intensity of competitive activity, including from new and emerging competitors, coupled with the launch of new products and services, and the resulting impact on the cost of customer acquisition and retention, as well as on our market shares, sales volumes and pricing strategies

• The level of technological substitution and the presence of alternative service providers contributing to the acceleration of disruptions and disintermediation in each of our business segments

• Subscriber and viewer growth is challenged by changing viewer habits and the expansion of OTT TV and other alternative service providers, which may accelerate the disconnection of TV services and the reduction of TV spending, as well as the fragmentation of, and changes in, the advertising market

• Rising content costs, as an increasing number of domestic and global competitors seek to acquire the same content, and challenges in our ability to acquire or develop key content to drive revenues and subscriber growth

• The proliferation of content piracy impacting our ability to monetize products and services, as well as creating bandwidth pressure

• Higher Canadian smartphone penetration and increased device costs could challenge subscriber growth and cost of acquisition and retention

• The inability to protect our physical and non-physical assets, including networks, IT systems, offices, corporate stores and sensitive information, from events such as information security attacks, unauthorized access or entry, fire and natural disasters

• The failure to transform our operations, enabling a truly customer-centric service experience across a constantly evolving profile of world-class products and services at all points of interaction, while lowering our cost structure

• The failure to continue investment in next-generation capabilities in a disciplined and strategic manner

• The complexity in our operations resulting from multiple technology platforms, billing systems, sales channels, marketing databases and a myriad of rate plans, promotions and product offerings

• The failure to implement or maintain highly effective IT systems supported by an effective governance and operating framework

• The failure to generate anticipated benefits from our corporate restructurings, system replacements and upgrades, staff reductions, process redesigns and the integration of business acquisitions

• Events affecting the functionality of, and our ability to protect, test, maintain, replace and upgrade, our networks, IT systems, equipment and other facilities

• In-orbit and other operational risks to which the satellites used to provide our satellite TV services are subject

• The failure to attract and retain employees with the appropriate skill sets and to drive their performance in a safe environment

• Changes to our base of suppliers or outsourcers that we may decide on or be required to implement

• The failure of our vendor selection, governance and oversight processes established to seek to ensure full risk transparency associated with existing and new suppliers

32             BCE Inc. 2020 Second Quarter Shareholder Report

7 MD&A Business risks

• Security and data leakage exposure if security control protocols affecting our suppliers are bypassed

• The quality of our products and services and the extent to which they may be subject to manufacturing defects or fail to comply with applicable government regulations and standards

• The inability to manage various credit, liquidity and market risks

• New or higher taxes due to new tax laws or changes thereto or in the interpretation thereof, and the inability to predict the outcome of government audits

• The failure to reduce costs, as well as unexpected increases in costs

• The failure to evolve practices to effectively monitor and control fraudulent activities

• The unfavourable resolution of legal proceedings and, in particular, class actions

• New or unfavourable changes in applicable laws and the failure to proactively address our legal and regulatory obligations

• The failure to recognize and adequately respond to climate change concerns or public and governmental expectations on environmental matters

• Health concerns about radiofrequency emissions from wireless communication devices and equipment

• The expected timing and completion of the proposed sale by BCE of 25 data centres at 13 sites to Equinix are subject to closing conditions and other risks and uncertainties

We caution that the foregoing list of risk factors is not exhaustive and other factors could also materially adversely affect us.

Please see section 9, Business risks of the BCE 2019 Annual MD&A for a more complete description of the above-mentioned and other risks, which section, and the other sections of the BCE 2019 Annual MD&A referred to therein, are incorporated by reference in this section 7.

In addition, please also see section 4.7, Liquidity – Litigation in the BCE 2020 First Quarter MD&A for an update to the legal proceedings described in the BCE 2019 AIF, which section 4.7 is incorporated by reference in this section 7. Please also see section 6, Regulatory environment in this MD&A for updates to the regulatory initiatives and proceedings described in the BCE 2019 Annual MD&A, which section 6 is incorporated by reference in this section 7.

Except for the updates set out in section 4.7, Liquidity – Litigation and in section 6, Business risks in the BCE 2020 First Quarter MD&A; as well as in section 6, Regulatory environment and in this section 7, Business risks in this MD&A, the risks described in the BCE 2019 Annual MD&A remain substantially unchanged.

UPDATE TO THE DESCRIPTION OF BUSINESS RISKS

PANDEMICS, EPIDEMICS AND OTHER PUBLIC HEALTH RISKS

COVID-19 PANDEMIC

The COVID-19 pandemic has resulted in governments and businesses worldwide adopting emergency measures to combat the spread of the coronavirus while seeking to maintain essential services. These measures have included, without limitation, social distancing, the temporary closure of non-essential businesses, stay-at-home and work-from-home policies, quarantine periods, border closures and travel bans or restrictions. These measures have significantly disrupted retail and commercial activities in most sectors of the economy and resulted in extreme volatility in financial markets. This has resulted, starting in the latter part of the first quarter and continuing into the second quarter, in a sharp economic downturn marked by high levels of unemployment, as most businesses reduced or ceased business operations, and reduced consumer spending. Certain of these measures have gradually started being eased across Canada in the latter part of the second quarter which has allowed many businesses to resume some level of, or increase, activities, often with certain operational adjustments, amid the uncertainty caused by the COVID-19 pandemic. However, some jurisdictions outside of Canada have begun re-opening only to return to restrictions in the face of increases in new COVID-19 cases and resurgences could cause more governments and businesses to re-introduce emergency measures including, depending on a resurgence’s intensity, certain or all of the strict confinement measures and business closures that were implemented at the beginning of the pandemic or, potentially, additional measures. Even if Canada is successful in limiting the effect of the pandemic within its borders, the Canadian economy, and thus our business, may continue to be adversely affected by the global economic downturn caused by COVID-19. The re-introduction of emergency measures, or a prolonged duration of the pandemic, could result in increased adverse economic disruptions and financial markets volatility. Adverse economic conditions could continue or worsen for as long as measures taken to contain the spread of COVID-19 persist and certain of such economic conditions could continue even upon the gradual or complete removal of such measures and thereafter, especially given that a certain segment of the general public, including certain of our customers and employees, may voluntarily choose to continue to apply such measures due to health concerns regarding COVID-19. The ability to keep public and business spaces open will depend on governments’ levels of success in containing the spread of the coronavirus as well as healthcare systems’ abilities to effectively deal with the pandemic.

Restrictive measures adopted or encouraged to combat the spread of the coronavirus and the resulting adverse economic conditions are expected to continue to adversely affect our business, financial condition, liquidity and financial results for as long as measures adopted in response to the COVID-19 pandemic remain in place or are re-introduced and potentially upon and after their gradual or complete removal, including, without limitation, as follows, and such adverse effect could be material.

• Should the temporary closure of our retail outlets be re-introduced, our ability to increase the number of subscribers to our services and sell our products and services would again be adversely impacted, which would adversely affect our revenues

• Should the temporary closure of non-essential businesses be mandated again or should the COVID-19 pandemic continue for a prolonged period of time, it would likely result in more employment losses and financial hardship adversely affecting spending by our customers, both businesses and consumers, which could continue or accelerate the decrease in the purchase of certain of our products and services. Additionally, the negative impact on our customers’ financial condition could continue to adversely affect our ability to recover payment of receivables from customers and lead to further increases in bad debts. These events had, and will continue to have for as long as they persist, a negative effect on our revenues and cash flows. They may also adversely affect our position under our securitized trade receivables programs.

BCE Inc. 2020 Second Quarter Shareholder Report         33

7 MD&A Business risks

• The COVID-19 pandemic is expected to continue to result in lower business customer activity which could continue to lead to further reduction or cancellation of services due to economic uncertainty. These adverse results would be exacerbated should the temporary closure of non-essential businesses be mandated again as a result of a resurgence in the number of COVID-19 cases. Business customers may continue to postpone purchases of hardware products, downgrade data connectivity speeds, or re-prioritize various business projects with a focus on business continuity instead of growth projects. We may be unable to perform work and render services on the premises of certain business customers due to existing, new or re-introduced government guidelines and health and safety measures. Finally, a certain number of our business customers could become insolvent or otherwise cease to carry on business as a result of the COVID-19 pandemic.

• Stay-at-home and work-from-home measures implemented by governments and businesses have impacted the nature of our customers’ use of our networks, products and services. This has created unprecedented capacity pressure on certain areas of our wireless, wireline and broadcast media networks. Although, as a result of various steps we have taken aimed at maintaining the continuity of essential services, our networks have, in general, adequately sustained such increased usage, there can be no assurance that this will continue to be the case. Network failures and slowdowns could have an adverse effect on our brand and reputation and adversely affect subscriber acquisition and retention as well as our financial results. We may also need to make significant capital expenditures in order to provide additional capacity and reduce network congestion due to the COVID-19 pandemic.

• We rely upon the successful implementation and execution of business continuity plans by our product and service suppliers and vendors. To the extent that such plans do not successfully mitigate the impacts of the COVID-19 pandemic and our suppliers or vendors experience operational failures, such failures could result in supply chain disruptions which could adversely affect our business. Furthermore, the consequences of the COVID-19 pandemic could adversely impact the operations of our call centres and, consequently, our customer service. Although we have trained and are continuing to train certain of our employees to perform customer service functions, there can be no assurance that a sufficient number of employees will be trained or that they will acquire the same level of knowledge or efficiency as those in our call centres.

• Measures adopted to combat the spread of the coronavirus have resulted in the suspension, delay or cancellation of live programming and other productions including various sporting events resulting in reduced audience levels in these market segments. In addition, measures such as social distancing and stay-at-home and work-from-home policies have adversely impacted Bell Media’s radio audience levels and OOH business, while economic pressures on advertisers have led to the cancellation or deferral of advertising campaigns. These events have adversely affected, and are expected to continue to adversely affect, for as long as they persist, Bell Media’s revenues.

• The COVID-19 pandemic and the restrictive measures mandated or encouraged to contain the spread of the coronavirus have changed consumer behaviour and activity and the way businesses operate, and such changes could continue or further evolve for as long as such measures persist, and potentially thereafter, which could adversely affect the sale of our products and services, as well as our revenues and cash flows.

• Global financial markets have experienced, and could continue to experience, significant volatility and weakness. Governments and central banks have reacted with significant monetary and fiscal interventions designed to stabilize economic conditions and financial markets. However, the efficacy of the governments’ and central banks’ interventions is uncertain. Economic uncertainty could negatively impact equity and debt capital markets, could cause interest rate volatility and movements, and could adversely affect our ability to raise financing in the public capital, bank credit and/or commercial paper markets as well as the cost thereof. In addition, the return on our pension plan assets and/or the discount rate used for valuing our post-employment benefit obligations may both be negatively impacted in the near to medium term. This could have an adverse effect on our post-employment benefit plan obligations and pension contributions in future years.

• Remote work arrangements of our employees and those of certain of our suppliers could introduce additional operating risks including, but not limited to, information security risks, and impair our ability to manage our business. A further extended period of remote work arrangements could strain our business continuity plans, impact our ability to develop and launch new products and services and exacerbate our exposure to operational risks.

• Incremental costs, delays or unavailability of equipment and materials as well as unavailability of our employees or those of our suppliers or contractors, due to government actions, illness, quarantines, absenteeism, workforce reduction initiatives or other restrictions, may impact our ability to maintain, upgrade or expand our networks in order to accommodate substantially increased network usage due to stay-at-home and work-at-home measures, to provide desired levels of customer service, or to start, advance or complete currently planned network deployment projects. Our inability to do the foregoing would have an adverse effect on our business, competitive capabilities and financial results. Labour disruptions and shortages would also negatively affect our ability to sell our products and services, install new services or make repairs on customer premises. Prolonged illness of our senior executives could have an adverse effect on the management of our business and on our financial results.

• As a result of the COVID-19 pandemic, additional legislation or regulations, regulatory initiatives or proceedings, or government consultations or positions, may be adopted or instituted, as the case may be, that impose additional constraints on our operations and may adversely impact our ability to compete in the marketplace.

In addition, the risk factors, including, without limitation, those described in section 9, Business risks, of the BCE 2019 Annual MD&A, as updated in the BCE 2020 First Quarter MD&A and in this MD&A, have been and/or could be exacerbated, or become more likely to materialize, as a result of the COVID-19 pandemic. The risks described in the BCE 2019 Annual MD&A, as updated in the BCE 2020 First Quarter MD&A and in this MD&A, could also be exacerbated, or become more likely to materialize, by social unrest that could result from the consequences of the COVID-19 pandemic or related events.

While we have implemented business continuity plans and taken additional steps where required, including various preventive measures and precautions, there can be no assurance that these actions in response to the COVID-19 pandemic will succeed in preventing or mitigating, in whole or in part, the negative impacts of the pandemic on our company, employees or customers, and these actions may have adverse effects on our business, which may continue following the COVID-19 pandemic.

Due to uncertainties relating to the severity and duration of the COVID-19 pandemic, including possible resurgences in the number of COVID-19 cases, and various potential outcomes, we are not able at this time to estimate the impacts of the COVID-19 pandemic on our business or future financial results and related assumptions. Our business and financial results could continue to be significantly and negatively impacted in future periods. The extent to which the COVID-19 pandemic will continue to adversely impact us will depend on future developments that are unknown and cannot be predicted, as well as new information which may emerge concerning the severity, duration and possible resurgences of the COVID-19 pandemic and the actions required to contain the coronavirus or remedy its impacts, among others. Any of the developments and risks referred to above, and others arising from the COVID-19 pandemic, could have a material adverse effect on our business, financial condition, liquidity, financial results or reputation.

34             BCE Inc. 2020 Second Quarter Shareholder Report

7 MD&A Business risks

As a result of the COVID-19 pandemic, we have, in the second quarter, recorded an impairment charge in our Bell Media segment relating to certain assets for our English TV, French TV and radio services. It is possible that the estimates currently recorded in our financial statements for the three months and six months ended June 30, 2020 could change again in the future. This may include valuations and estimates related to allowance for doubtful accounts and impairment of contract assets, both of which take into account current economic conditions, as well as historical and forward-looking information, inventory valuation reserves, impairment of non-financial assets, derivative financial instruments, post-employment benefit plans and other provisions. We are evaluating the situation and monitoring the impacts on our operations.

PROPOSED SALE OF DATA CENTRES

The expected timing and completion of the proposed sale by BCE of 25 data centres at 13 sites to Equinix are subject to closing conditions and other risks and uncertainties

The expected timing and completion of the proposed sale by BCE of 25 data centres at 13 sites to Equinix are subject to customary closing conditions, termination rights and other risks and uncertainties. There can be no assurance that the proposed transaction will occur, or that it will occur on the terms and conditions, or at the time, currently contemplated. The proposed transaction could be modified, restructured or terminated. There can also be no assurance that the strategic benefits expected to result from the transaction will be realized.

BCE Inc. 2020 Second Quarter Shareholder Report         35

8 MD&A Accounting policies, financial measures and controls

8   Accounting policies, financial measures and controls

8.1  Our accounting policies

BCE’s Q2 2020 Financial Statements were prepared in accordance with IFRS, as issued by the IASB, under IAS 34 – Interim Financial Reporting and were approved by BCE’s board of directors on August 5, 2020. These financial statements were prepared using the same basis of presentation, accounting policies and methods of computation as outlined in Note 2, Significant accounting policies in BCE’s consolidated financial statements for the year ended December 31, 2019, except as noted below, and as described in Note 3, Discontinued Operations, in BCE’s Q2 2020 Financial Statements. BCE’s Q2 2020 Financial Statements do not include all of the notes required in the annual financial statements.

ESTIMATES AND KEY JUDGMENTS

When preparing the financial statements, management makes estimates and judgments relating to reported amounts of revenues and expenses, reported amounts of assets and liabilities and disclosure of contingent assets and liabilities. We base our estimates on a number of factors, including historical experience, current events including but not limited to the COVID-19 pandemic and actions that the company may undertake in the future, and other assumptions that we believe are reasonable under the circumstances. By their nature, these estimates and judgments are subject to measurement uncertainty and actual results could differ.

ADOPTION OF NEW OR AMENDED ACCOUNTING STANDARDS

As required, effective January 1, 2020, we adopted the following amended accounting standards.

STANDARD	DESCRIPTION	IMPACT
IFRIC Agenda Decision on IFRS 16 – Leases	International Financial Reporting Interpretations Committee (IFRIC) agenda decision clarifying the determination of the lease term for cancellable or renewable leases under IFRS 16.	This agenda decision did not have a significant impact on our financial statements.
Definition of a Business, Amendments to IFRS 3 – Business Combinations	These amendments to the implementation guidance of IFRS 3 clarify the definition of a business to assist entities to determine whether a transaction should be accounted for as a business combination or an asset acquisition.	These amendments did not have any impact on our financial statements. They may affect whether future acquisitions are accounted for as business combinations or asset acquisitions, along with the resulting allocation of the purchase price between the net identifiable assets acquired and goodwill.

FUTURE CHANGES TO ACCOUNTING STANDARDS

The following amendments to standards issued by the IASB have not yet been adopted by BCE.

STANDARD	DESCRIPTION	IMPACT	EFFECTIVE DATE
COVID-19 – Related Rent Concessions, Amendment to IFRS 16 – Leases	This amendment provides an optional relief to lessees from applying IFRS 16’s guidance on lease modification accounting for rent concessions arising as a direct consequence of the COVID-19 pandemic.	We are currently assessing the impact of this amendment, if we adopt the optional relief.	Effective for annual reporting periods beginning on or after June 1, 2020. Early application is permitted.
Onerous Contracts – Cost of Fulfilling a Contract, Amendments to IAS 37 – Provisions	These amendments clarify which costs should be included in determining the cost of fulfilling a contract when assessing whether a contract is onerous.	We are currently assessing the impact of these amendments.	Effective for annual reporting periods beginning on or after January 1, 2022. Early application is permitted.

8.2   Non-GAAP financial measures and key performance indicators (KPIs)

This section describes the non-GAAP financial measures and KPIs we use to explain our financial results. It also provides reconciliations of the non-GAAP financial measures to the most comparable IFRS financial measures.

In Q2 2020, we updated our definitions of adjusted net earnings, adjusted EPS and free cash flow to exclude the impacts of discontinued operations as they may affect the comparability of our financial results and could potentially distort the analysis of trends in business performance. As a result of this change, prior periods have been restated for comparative purposes.

ADJUSTED EBITDA AND ADJUSTED EBITDA MARGIN

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

We define adjusted EBITDA as operating revenues less operating costs, as shown in BCE’s consolidated income statements. Adjusted EBITDA for BCE’s segments is the same as segment profit as reported in Note 4, Segmented information, in BCE’s Q2 2020 Financial Statements. We define adjusted EBITDA margin as adjusted EBITDA divided by operating revenues.

36             BCE Inc. 2020 Second Quarter Shareholder Report

8 MD&A Accounting policies, financial measures and controls

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

Adjusted EBITDA and adjusted EBITDA margin have no directly comparable IFRS financial measure. Alternatively, the following table provides a reconciliation of net earnings to adjusted EBITDA.

	Q2 2020			Q2 2019			YTD 2020			YTD 2019
Net earnings		294			817			1,027			1,608
Severance, acquisition and other costs		22			39			38			63
Depreciation		869			879			1,727			1,752
Amortization		234			220			464			437
Finance costs
Interest expense		280			279			557			560
Interest on post-employment benefit obligations		11			15			23			31
Impairment of assets		449			1			456			5
Other expense (income)		80			54			127			(51	)
Income taxes		96			275			339			565
Net earnings from discontinued operations		(4	)		(7	)		(9	)		(16	)
Adjusted EBITDA		2,331			2,572			4,749			4,954
BCE operating revenues		5,354			5,889			10,994			11,578
Adjusted EBITDA margin		43.5	%		43.7	%		43.2	%		42.8	%

ADJUSTED NET EARNINGS AND ADJUSTED EPS

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

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

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

The most comparable IFRS financial measures are net earnings attributable to common shareholders and EPS.

The following table is a reconciliation of net earnings attributable to common shareholders and EPS to adjusted net earnings on a consolidated basis and per BCE common share (adjusted EPS), respectively.

	Q2 2020						Q2 2019						YTD 2020						YTD 2019
	TOTAL			PER SHARE			TOTAL			PER SHARE			TOTAL			PER SHARE			TOTAL			PER SHARE
Net earnings attributable to common shareholders		237			0.26			761			0.85			917			1.01			1,501			1.67
Severance, acquisition and other costs		16			0.02			28			0.04			28			0.03			46			0.06
Net mark-to-market losses (gains) on derivatives used to economically hedge equity settled share-based compensation plans		7			–			(9	)		(0.02	)		27			0.03			(82	)		(0.09	)
Net (gains) losses on investments		(11	)		(0.01	)		53			0.06			(21	)		(0.02	)		57			0.06
Early debt redemption costs		–			–			13			0.01			12			0.01			13			0.01
Impairment of assets		328			0.36			1			–			333			0.37			4			–
Net earnings from discontinued operations		(4	)		–			(7	)		(0.01	)		(9	)		(0.01	)		(16	)		(0.02	)
Adjusted net earnings		573			0.63			840			0.93			1,287			1.42			1,523			1.69

FREE CASH FLOW AND DIVIDEND PAYOUT RATIO

The terms free cash flow and dividend payout ratio do not have any standardized meaning under IFRS. Therefore, they are unlikely to be comparable to similar measures presented by other issuers.

We define free cash flow as cash flows from operating activities, excluding cash from discontinued operations, acquisition and other costs paid (which include significant litigation costs) and voluntary pension funding, less capital expenditures, preferred share dividends and dividends paid by subsidiaries to NCI. We exclude cash from discontinued operations, acquisition and other costs paid and voluntary pension funding because they affect

BCE Inc. 2020 Second Quarter Shareholder Report         37

8 MD&A Accounting policies, financial measures and controls

the comparability of our financial results and could potentially distort the analysis of trends in business performance. Excluding these items does not imply they are non-recurring.

We consider free cash flow to be an important indicator of the financial strength and performance of our businesses because it shows how much cash is available to pay dividends on common shares, repay debt and reinvest in our company. We believe that certain investors and analysts use free cash flow to value a business and its underlying assets and to evaluate the financial strength and performance of our businesses. The most comparable IFRS financial measure is cash flows from operating activities.

We define dividend payout ratio as dividends paid on common shares divided by free cash flow. We consider dividend payout ratio to be an important indicator of the financial strength and performance of our businesses because it shows the sustainability of the company’s dividend payments.

The following table is a reconciliation of cash flows from operating activities to free cash flow on a consolidated basis.

	Q2 2020			Q2 2019			YTD 2020			YTD 2019
Cash flows from operating activities		2,562			2,093			4,013			3,609
Capital expenditures		(900	)		(967	)		(1,677	)		(1,815	)
Cash dividends paid on preferred shares		(33	)		(37	)		(69	)		(63	)
Cash dividends paid by subsidiaries to NCI		(12	)		(12	)		(26	)		(39	)
Acquisition and other costs paid		11			21			20			50
Cash from discontinued operations (included in cash flows from operating activities)		(17	)		(22	)		(39	)		(47	)
Free cash flow		1,611			1,076			2,222			1,695

NET DEBT

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

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

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

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

	JUNE 30, 2020			DECEMBER 31, 2019
Debt due within one year		2,584			3,881
Long-term debt		25,024			22,415
50% of outstanding preferred shares		2,002			2,002
Cash and cash equivalents		(1,547	)		(145	)
Net debt		28,063			28,153

NET DEBT LEVERAGE RATIO

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

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

ADJUSTED EBITDA TO NET INTEREST EXPENSE RATIO

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

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

38             BCE Inc. 2020 Second Quarter Shareholder Report

8 MD&A Accounting policies, financial measures and controls

KPIs

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

KPI	DEFINITION
ABPU	Average billing per user (ABPU) or subscriber approximates the average amount billed to customers on a monthly basis, including monthly billings related to device financing receivables owing from customers on contract, which is used to track our recurring billing streams. Wireless blended ABPU is calculated by dividing certain customer billings by the average subscriber base for the specified period and is expressed as a dollar unit per month.
Capital intensity	Capital expenditures divided by operating revenues.
Churn	Churn is the rate at which existing subscribers cancel their services. It is a measure of our ability to retain our customers. Wireless churn is calculated by dividing the number of deactivations during a given period by the average number of subscribers in the base for the specified period and is expressed as a percentage per month.
Subscriber unit	Wireless subscriber unit is comprised of an active revenue-generating unit (e.g. mobile device, tablet or wireless Internet products), with a unique identifier (typically International Mobile Equipment Identity (IMEI) number), that has access to our wireless networks. We report wireless subscriber units in two categories: postpaid and prepaid. Prepaid subscriber units are considered active for a period of 90 days following the expiry of the subscriber’s prepaid balance. Wireline subscriber unit consists of an active revenue-generating unit with access to our services, including retail Internet, satellite TV, IPTV, and/or NAS. A subscriber is included in our subscriber base when the service has been installed and is operational at the customer premise and a billing relationship has been established. •   Retail Internet, IPTV and satellite TV subscribers have access to stand-alone services, and are primarily represented by a dwelling unit •   Retail NAS subscribers are based on a line count and are represented by a unique telephone number

8.3  Controls and procedures

CHANGES IN INTERNAL CONTROL OVER FINANCIAL REPORTING

No changes were made in our internal control over financial reporting during the quarter ended June 30, 2020 that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

BCE Inc. 2020 Second Quarter Shareholder Report         39

Consolidated financial statements

Consolidated financial statements

Consolidated income statements

FOR THE PERIOD ENDED JUNE 30			THREE MONTHS						SIX MONTHS
(IN MILLIONS OF CANADIAN DOLLARS, EXCEPT SHARE AMOUNTS) (UNAUDITED)	NOTE		2020			2019			2020			2019
Operating revenues		4		5,354			5,889			10,994			11,578
Operating costs		4, 5		(3,023	)		(3,317	)		(6,245	)		(6,624	)
Severance, acquisition and other costs		6		(22	)		(39	)		(38	)		(63	)
Depreciation				(869	)		(879	)		(1,727	)		(1,752	)
Amortization				(234	)		(220	)		(464	)		(437	)
Finance costs
Interest expense				(280	)		(279	)		(557	)		(560	)
Interest on post-employment benefit obligations		13		(11	)		(15	)		(23	)		(31	)
Impairment of assets		7		(449	)		(1	)		(456	)		(5	)
Other (expense) income		8		(80	)		(54	)		(127	)		51
Income taxes				(96	)		(275	)		(339	)		(565	)
Net earnings from continuing operations				290			810			1,018			1,592
Net earnings from discontinued operations		3		4			7			9			16
Net earnings				294			817			1,027			1,608
Net earnings from continuing operations attributable to:
Common shareholders				233			754			908			1,485
Preferred shareholders				34			38			72			76
Non-controlling interest				23			18			38			31
Net earnings from continuing operations				290			810			1,018			1,592
Net earnings attributable to:
Common shareholders				237			761			917			1,501
Preferred shareholders				34			38			72			76
Non-controlling interest				23			18			38			31
Net earnings				294			817			1,027			1,608
Net earnings per common share – basic and diluted		9
Continuing operations				0.26			0.84			1.00			1.65
Discontinued operations		3		–			0.01			0.01			0.02
Net earnings per common share – basic and diluted				0.26			0.85			1.01			1.67
Weighted average number of common shares outstanding – basic (millions)				904.3			899.5			904.2			898.9

40             BCE Inc. 2020 Second Quarter Shareholder Report

Consolidated financial statements

Consolidated statements of comprehensive (loss) income

FOR THE PERIOD ENDED JUNE 30			THREE MONTHS						SIX MONTHS
(IN MILLIONS OF CANADIAN DOLLARS) (UNAUDITED)	NOTE		2020			2019			2020			2019
Net earnings from continuing operations				290			810			1,018			1,592
Other comprehensive (loss) income from continuing operations, net of income taxes
Items that will be subsequently reclassified to net earnings
Net change in value of publicly-traded and privately-held investments, net of income taxes of nil for the three and six months ended June 30, 2020 and 2019, respectively				(4	)		–			(7	)		–
Net change in value of derivatives designated as cash flow hedges, net of income taxes of $40 million and ($4) million for the three months ended June 30, 2020 and 2019, respectively and ($76) million and $16 million for the six months ended June 30, 2020 and 2019, respectively				(111	)		10			207			(44	)
Items that will not be reclassified to net earnings
Actuarial (losses) gains on post-employment benefit plans, net of income taxes of $594 million and $84 million for the three months ended June 30, 2020 and 2019, respectively, and ($40) million and $118 million for the six months ended June 30, 2020 and 2019, respectively (1)		13		(1,621	)		(227	)		110			(320	)
Net change in value of derivatives designated as cash flow hedges, net of income taxes of $9 million and $4 million for the three months ended June 30, 2020 and 2019, respectively, and ($12) million and $8 million for the six months ended June 30, 2020 and 2019, respectively				(24	)		(10	)		33			(22	)
Other comprehensive (loss) income from continuing operations				(1,760	)		(227	)		343			(386	)
Net earnings from discontinued operations attributable to common shareholders				4			7			9			16
Total comprehensive (loss) income				(1,466	)		590			1,370			1,222
Total comprehensive (loss) income attributable to:
Common shareholders				(1,520	)		535			1,258			1,118
Preferred shareholders				34			38			72			76
Non-controlling interest				20			17			40			28
Total comprehensive (loss) income				(1,466	)		590			1,370			1,222

(1) The discount rate used to value our post-employment benefit obligations at June 30, 2020 was 2.8% compared to 4.2% at March 31, 2020 and 3.1% at December 31, 2019. The discount rate used to value our post-employment benefit obligations at June 30, 2019 was 3.0% compared to 3.3% at March 31, 2019 and 3.8% at December 31, 2018.

BCE Inc. 2020 Second Quarter Shareholder Report         41

Consolidated financial statements

Consolidated statements of financial position

(IN MILLIONS OF CANADIAN DOLLARS) (UNAUDITED)	NOTE		JUNE 30, 2020			DECEMBER 31, 2019
ASSETS
Current assets
Cash				1,297			141
Cash equivalents				250			4
Trade and other receivables		10		2,812			3,038
Inventory				445			427
Contract assets				921			1,111
Contract costs				399			415
Prepaid expenses				301			194
Other current assets				212			190
Assets held for sale		3		825			–
Total current assets				7,462			5,520
Non-current assets
Contract assets				328			533
Contract costs				341			368
Property, plant and equipment				26,840			27,636
Intangible assets				12,897			13,352
Deferred tax assets				123			98
Investments in associates and joint ventures				718			698
Other non-current assets		11		1,931			1,274
Goodwill				10,551			10,667
Total non-current assets				53,729			54,626
Total assets				61,191			60,146
LIABILITIES
Current liabilities
Trade payables and other liabilities				3,341			3,954
Contract liabilities				723			683
Interest payable				229			227
Dividends payable				766			729
Current tax liabilities				287			303
Debt due within one year				2,584			3,881
Liabilities held for sale		3		205			–
Total current liabilities				8,135			9,777
Non-current liabilities
Contract liabilities				216			207
Long-term debt		12		25,024			22,415
Deferred tax liabilities				3,765			3,561
Post-employment benefit obligations		13		1,980			1,907
Other non-current liabilities				934			871
Total non-current liabilities				31,919			28,961
Total liabilities				40,054			38,738
EQUITY
Equity attributable to BCE shareholders
Preferred shares				4,004			4,004
Common shares				20,386			20,363
Contributed surplus				1,155			1,178
Accumulated other comprehensive income				386			161
Deficit				(5,142	)		(4,632	)
Total equity attributable to BCE shareholders				20,789			21,074
Non-controlling interest				348			334
Total equity				21,137			21,408
Total liabilities and equity				61,191			60,146

42             BCE Inc. 2020 Second Quarter Shareholder Report

Consolidated financial statements

Consolidated statements of changes in equity

	ATTRIBUTABLE TO BCE SHAREHOLDERS
FOR THE PERIOD ENDED JUNE 30, 2020 (IN MILLIONS OF CANADIAN DOLLARS) (UNAUDITED)	PREFERRED SHARES		COMMON SHARES		CONTRI- BUTED SURPLUS			ACCUM- ULATED OTHER COMPRE- HENSIVE INCOME (LOSS)			DEFICIT			TOTAL			NON- CONTROL- LING INTEREST			TOTAL EQUITY
Balance at December 31, 2019		4,004		20,363		1,178			161			(4,632	)		21,074			334			21,408
Net earnings		–		–		–			–			989			989			38			1,027
Other comprehensive income		–		–		–			231			110			341			2			343
Total comprehensive income		–		–		–			231			1,099			1,330			40			1,370
Common shares issued under employee stock option plan		–		23		(1	)		–			–			22			–			22
Other share-based compensation		–		–		(22	)		–			(31	)		(53	)		–			(53	)
Dividends declared on BCE common and preferred shares		–		–		–			–			(1,578	)		(1,578	)		–			(1,578	)
Dividends declared by subsidiaries to non-controlling interest		–		–		–			–			–			–			(26	)		(26	)
Settlement of cash flow hedges transferred to the cost basis of hedged items		–		–		–			(6	)		–			(6	)		–			(6	)
Balance at June 30, 2020		4,004		20,386		1,155			386			(5,142	)		20,789			348			21,137
	ATTRIBUTABLE TO BCE SHAREHOLDERS
FOR THE PERIOD ENDED JUNE 30, 2019 (IN MILLIONS OF CANADIAN DOLLARS) (UNAUDITED)	PREFERRED SHARES		COMMON SHARES		CONTRI- BUTED SURPLUS			ACCUM- ULATED OTHER COMPRE- HENSIVE INCOME (LOSS)			DEFICIT			TOTAL			NON- CONTROL- LING INTEREST			TOTAL EQUITY
Balance at December 31, 2018		4,004		20,036		1,170			90			(4,937	)		20,363			326			20,689
Adoption of IFRS 16		–		–		–			–			(19	)		(19	)		(1	)		(20	)
Balance at January 1, 2019		4,004		20,036		1,170			90			(4,956	)		20,344			325			20,669
Net earnings		–		–		–			–			1,577			1,577			31			1,608
Other comprehensive loss		–		–		–			(64	)		(319	)		(383	)		(3	)		(386	)
Total comprehensive (loss) income		–		–		–			(64	)		1,258			1,194			28			1,222
Common shares issued under employee stock option plan		–		67		(3	)		–			–			64			–			64
Common shares issued under employee savings plan (ESP)		–		40		–			–			–			40			–			40
Other share-based compensation		–		1		(2	)		–			4			3			–			3
Dividends declared on BCE common and preferred shares		–		–		–			–			(1,501	)		(1,501	)		–			(1,501	)
Dividends declared by subsidiaries to non-controlling interest		–		–		–			–			–			–			(39	)		(39	)
Settlement of cash flow hedges transferred to the cost basis of hedged items		–		–		–			(12	)		–			(12	)		–			(12	)
Other		–		–		–			–			–			–			15			15
Balance at June 30, 2019		4,004		20,144		1,165			14			(5,195	)		20,132			329			20,461

BCE Inc. 2020 Second Quarter Shareholder Report         43

Consolidated financial statements

Consolidated statements of cash flows

FOR THE PERIOD ENDED JUNE 30			THREE MONTHS						SIX MONTHS
(IN MILLIONS OF CANADIAN DOLLARS) (UNAUDITED)	NOTE		2020			2019			2020			2019
Cash flows from operating activities
Net earnings from continuing operations				290			810			1,018			1,592
Adjustments to reconcile net earnings from continuing operations to cash flows from operating activities
Severance, acquisition and other costs		6		22			39			38			63
Depreciation and amortization				1,103			1,099			2,191			2,189
Post-employment benefit plans cost		13		75			73			162			157
Net interest expense				275			271			545			547
Impairment of assets		7		449			1			456			5
Losses on investments		8		–			–			–			4
Income taxes				96			275			339			565
Contributions to post-employment benefit plans				(71	)		(70	)		(150	)		(151	)
Payments under other post-employment benefit plans				(12	)		(19	)		(29	)		(37	)
Severance and other costs paid				(13	)		(33	)		(48	)		(99	)
Interest paid				(240	)		(269	)		(556	)		(534	)
Income taxes paid (net of refunds)				6			(127	)		(227	)		(416	)
Acquisition and other costs paid				(11	)		(21	)		(20	)		(50	)
Net change in operating assets and liabilities				576			42			255			(273	)
Cash from discontinued operations		3		17			22			39			47
Cash flows from operating activities				2,562			2,093			4,013			3,609
Cash flows used in investing activities
Capital expenditures				(900	)		(967	)		(1,677	)		(1,815	)
Business acquisitions				(23	)		(50	)		(23	)		(50	)
Other investing activities				(13	)		32			(19	)		8
Cash used in discontinued operations		3		(8	)		(5	)		(15	)		(7	)
Cash flows used in investing activities				(944	)		(990	)		(1,734	)		(1,864	)
Cash flows used in financing activities
(Decrease) increase in notes payable				(1,204	)		277			(1,434	)		844
(Decrease) increase in securitized trade receivables				(400	)		–			–			31
Issue of long-term debt		12		1,975			1,405			5,256			1,405
Repayment of long-term debt		12		(2,221	)		(1,597	)		(2,930	)		(1,800	)
Issue of common shares				–			44			22			64
Purchase of shares for settlement of share-based payments				(75	)		(10	)		(169	)		(86	)
Cash dividends paid on common shares				(753	)		(712	)		(1,469	)		(1,390	)
Cash dividends paid on preferred shares				(33	)		(37	)		(69	)		(63	)
Cash dividends paid by subsidiaries to non-controlling interest				(12	)		(12	)		(26	)		(39	)
Other financing activities				(25	)		(33	)		(55	)		(39	)
Cash used in discontinued operations		3		(2	)		(2	)		(3	)		(3	)
Cash flows used in financing activities				(2,750	)		(677	)		(877	)		(1,076	)
Net increase in cash				354			173			1,156			294
Cash at beginning of period				943			546			141			425
Cash at end of period				1,297			719			1,297			719
Net (decrease) increase in cash equivalents				(1,486	)		253			246			375
Cash equivalents at beginning of period				1,736			122			4			–
Cash equivalents at end of period				250			375			250			375

44             BCE Inc. 2020 Second Quarter Shareholder Report

Notes to consolidated financial statements

Notes to consolidated financial statements

These consolidated interim financial statements (financial statements) should be read in conjunction with BCE’s 2019 annual consolidated financial statements, approved by BCE’s board of directors on March 5, 2020.

These notes are unaudited.

We, us, our, BCE and the company mean, as the context may require, either BCE Inc. or, collectively, BCE Inc., Bell Canada, their subsidiaries, joint arrangements and associates.

Note 1    Corporate Information

BCE is incorporated and domiciled in Canada. BCE’s head office is located at 1, Carrefour Alexander-Graham-Bell, Verdun, Québec, Canada. BCE is a telecommunications and media company providing wireless, wireline, Internet and television (TV) services to residential, business and wholesale customers in Canada. Our Bell Media segment provides conventional TV, specialty TV, pay TV, streaming services, digital media services, radio broadcasting services and out-of-home advertising services to customers in Canada.

Note 2    Basis of presentation and significant accounting policies

These financial statements were prepared in accordance with International Financial Reporting Standards (IFRS), as issued by the International Accounting Standards Board (IASB), under International Accounting Standard (IAS) 34 – Interim Financial Reporting and were approved by BCE’s board of directors on August 5, 2020. These financial statements were prepared using the same basis of presentation, accounting policies and methods of computation as outlined in Note 2, Significant accounting policies in our consolidated financial statements for the year ended December 31, 2019, except as noted below and as described in Note 3, Discontinued Operations.

These financial statements do not include all of the notes required in annual financial statements.

All amounts are in millions of Canadian dollars, except where noted.

ESTIMATES AND KEY JUDGMENTS

When preparing the financial statements, management makes estimates and judgments relating to reported amounts of revenues and expenses, reported amounts of assets and liabilities and disclosure of contingent assets and liabilities. We base our estimates on a number of factors, including historical experience, current events including but not limited to the COVID-19 pandemic and actions that the company may undertake in the future, and other assumptions that we believe are reasonable under the circumstances. By their nature, these estimates and judgments are subject to measurement uncertainty and actual results could differ.

ADOPTION OF AMENDED ACCOUNTING STANDARDS

As required, effective January 1, 2020, we adopted the following amended accounting standards.

STANDARD	DESCRIPTION	IMPACT
IFRIC Agenda Decision on IFRS 16 – Leases	International Financial Reporting Interpretations Committee (IFRIC) agenda decision clarifying the determination of the lease term for cancellable or renewable leases under IFRS 16.	This agenda decision did not have a significant impact on our financial statements.
Definition of a Business, Amendments to IFRS 3 – Business Combinations	These amendments to the implementation guidance of IFRS 3 clarify the definition of a business to assist entities to determine whether a transaction should be accounted for as a business combination or an asset acquisition.	These amendments did not have any impact on our financial statements. They may affect whether future acquisitions are accounted for as business combinations or asset acquisitions, along with the resulting allocation of the purchase price between the net identifiable assets acquired and goodwill.

BCE Inc. 2020 Second Quarter Shareholder Report         45

Notes to consolidated financial statements

FUTURE CHANGES TO ACCOUNTING STANDARDS

The following amendments to standards issued by the IASB have not yet been adopted by BCE.

STANDARD	DESCRIPTION	IMPACT	EFFECTIVE DATE
COVID-19 – Related Rent Concessions, Amendment to IFRS 16 – Leases	This amendment provides an optional relief to lessees from applying IFRS 16’s guidance on lease modification accounting for rent concessions arising as a direct consequence of the COVID-19 pandemic.	We are currently assessing the impact of this amendment, if we adopt the optional relief.	Effective for annual reporting periods beginning on or after June 1, 2020. Early application is permitted.
Onerous Contracts – Cost of Fulfilling a Contract, Amendments to IAS 37 – Provisions	These amendments clarify which costs should be included in determining the cost of fulfilling a contract when assessing whether a contract is onerous.	We are currently assessing the impact of these amendments.	Effective for annual reporting periods beginning on or after January 1, 2022. Early application is permitted.

Note 3    Discontinued operations

On June 1, 2020, BCE announced that it had entered into an agreement to sell substantially all of its data centre operations in an all-cash transaction valued at $1.04 billion. The transaction is expected to close in the second half of 2020, subject to customary closing conditions. As a result, we have reclassified amounts related to the announced sale for the previous periods to discontinued operations in our consolidated income statements and consolidated statements of cash flows to make them consistent with the presentation for the current period. We have also reclassified the assets and liabilities of the data centre operations to be sold as held for sale in our consolidated statements of financial position at June 30, 2020, measured at their carrying amount, which is lower than the estimated fair value less costs to sell. Property, plant and equipment and intangible assets included in assets held for sale are no longer depreciated or amortized effective June 1, 2020.

The following table summarizes the carrying value of the assets and liabilities that are classified as held for sale at June 30, 2020.

	JUNE 30, 2020
Contract assets		1
Contract costs		3
Property, plant and equipment		479
Intangible assets		227
Goodwill		115
Total assets held for sale		825
Long-term debt		115
Deferred tax liabilities		82
Other non-current liabilities		8
Total liabilities held for sale		205
Net assets held for sale		620

The following tables summarize the income statements and statements of cash flows of our discontinued operations for the three and six months ended June 30, 2020 and 2019.

	THREE MONTHS				SIX MONTHS
FOR THE PERIOD ENDED JUNE 30	2020		2019		2020		2019
Operating revenues		39		41		79		86
Operating costs		(19)		(18)		(35)		(36)
Depreciation		(8)		(9)		(18)		(18)
Amortization		(3)		(3)		(7)		(7)
Interest expense		(2)		(2)		(4)		(4)
Other income		(1)		(1)		(2)		(1)
Income taxes		(2)		(1)		(4)		(4)
Net earnings attributable to common shareholders		4		7		9		16
	THREE MONTHS				SIX MONTHS
FOR THE PERIOD ENDED JUNE 30	2020		2019		2020		2019
Cash flows from operating activities		17		22		39		47
Cash flows used in investing activities		(8)		(5)		(15)		(7)
Cash flows used in financing activities		(2)		(2)		(3)		(3)
Net increase in cash		7		15		21		37

46             BCE Inc. 2020 Second Quarter Shareholder Report

Notes to consolidated financial statements

Note 4    Segmented information

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

To align with changes in how we manage our business and assess performance, the operating results of our public safety land radio network business are now included within our Bell Wireline segment effective January 1, 2020, with prior periods restated for comparative purposes. Previously, these results were included within our Bell Wireless segment. Our public safety land radio network business, which builds and manages land mobile radio networks primarily for the government sector, is now managed by our Bell Business Markets team in order to better serve our customers with end-to-end communications solutions.

As a result of our agreement to sell substantially all of our data centre operations, the financial results of these data centre operations, which were previously included in our Bell Wireline segment, are now presented as a discontinued operation. See Note 3, Discontinued operations, for additional details.

The following tables present financial information by segment for the three month periods ended June 30, 2020 and 2019.

			BELL			BELL			BELL			INTERSEGMENT
FOR THE THREE MONTH PERIOD ENDED JUNE 30, 2020	NOTE		WIRELESS			WIRELINE			MEDIA			ELIMINATIONS			BCE
Operating revenues
External customers				1,909			2,963			482			–			5,354
Inter-segment				13			80			97			(190	)		–
Total operating revenues				1,922			3,043			579			(190	)		5,354
Operating costs		5		(1,043	)		(1,764	)		(406	)		190			(3,023	)
Segment profit (1)				879			1,279			173			–			2,331
Severance, acquisition and other costs		6														(22	)
Depreciation and amortization																(1,103	)
Finance costs
Interest expense																(280	)
Interest on post-employment benefit obligations		13														(11	)
Impairment of assets		7														(449	)
Other expense		8														(80	)
Income taxes																(96	)
Net earnings from continuing operations																290
Net earnings from discontinued operations																4
Net earnings																294
(1)  The chief operating decision maker uses primarily one measure of profit to make decisions and assess performance, being operating revenues less operating costs.
			BELL			BELL			BELL			INTERSEGMENT
FOR THE THREE MONTH PERIOD ENDED JUNE 30, 2019	NOTE		WIRELESS			WIRELINE			MEDIA			ELIMINATIONS			BCE
Operating revenues
External customers				2,146			3,006			737			–			5,889
Inter-segment				14			67			105			(186	)		–
Total operating revenues				2,160			3,073			842			(186	)		5,889
Operating costs		5		(1,192	)		(1,723	)		(588	)		186			(3,317	)
Segment profit (1)				968			1,350			254			–			2,572
Severance, acquisition and other costs		6														(39	)
Depreciation and amortization																(1,099	)
Finance costs
Interest expense																(279	)
Interest on post-employment benefit obligations		13														(15	)
Impairment of assets		7														(1	)
Other expense		8														(54	)
Income taxes																(275	)
Net earnings from continuing operations																810
Net earnings from discontinued operations																7
Net earnings																817

(1) The chief operating decision maker uses primarily one measure of profit to make decisions and assess performance, being operating revenues less operating costs.

BCE Inc. 2020 Second Quarter Shareholder Report         47

Notes to consolidated financial statements

The following tables present financial information by segment for the six month periods ended June 30, 2020 and 2019.

			BELL			BELL			BELL			INTERSEGMENT
FOR THE SIX MONTH PERIOD ENDED JUNE 30, 2020	NOTE		WIRELESS			WIRELINE			MEDIA			ELIMINATIONS			BCE
Operating revenues
External customers				3,931			5,923			1,140			–			10,994
Inter-segment				26			156			191			(373	)		–
Total operating revenues				3,957			6,079			1,331			(373	)		10,994
Operating costs		5		(2,150	)		(3,465	)		(1,003	)		373			(6,245	)
Segment profit (1)				1,807			2,614			328			–			4,749
Severance, acquisition and other costs		6														(38	)
Depreciation and amortization																(2,191	)
Finance costs
Interest expense																(557	)
Interest on post-employment benefit obligations		13														(23	)
Impairment of assets		7														(456	)
Other expense		8														(127	)
Income taxes																(339	)
Net earnings from continuing operations																1,018
Net earnings from discontinued operations																9
Net earnings																1,027
(1)  The chief operating decision maker uses primarily one measure of profit to make decisions and assess performance, being operating revenues less operating costs.
			BELL			BELL			BELL			INTERSEGMENT
FOR THE SIX MONTH PERIOD ENDED JUNE 30, 2019	NOTE		WIRELESS			WIRELINE			MEDIA			ELIMINATIONS			BCE
Operating revenues
External customers				4,210			5,991			1,377			–			11,578
Inter-segment				27			134			210			(371	)		–
Total operating revenues				4,237			6,125			1,587			(371	)		11,578
Operating costs		5		(2,377	)		(3,450	)		(1,168	)		371			(6,624	)
Segment profit (1)				1,860			2,675			419			–			4,954
Severance, acquisition and other costs		6														(63	)
Depreciation and amortization																(2,189	)
Finance costs
Interest expense																(560	)
Interest on post-employment benefit obligations		13														(31	)
Impairment of assets		7														(5	)
Other income		8														51
Income taxes																(565	)
Net earnings from continuing operations																1,592
Net earnings from discontinued operations																16
Net earnings																1,608

(1) The chief operating decision maker uses primarily one measure of profit to make decisions and assess performance, being operating revenues less operating costs.

48             BCE Inc. 2020 Second Quarter Shareholder Report

Notes to consolidated financial statements

REVENUES BY SERVICES AND PRODUCTS

	THREE MONTHS				SIX MONTHS
FOR THE PERIOD ENDED JUNE 30	2020		2019		2020		2019
Services (1)
Wireless		1,481		1,580		3,016		3,108
Wireline data		1,916		1,914		3,807		3,780
Wireline voice		863		897		1,735		1,804
Media		482		737		1,140		1,377
Other wireline services		58		62		120		121
Total services		4,800		5,190		9,818		10,190
Products (2)
Wireless		428		566		915		1,102
Wireline data		113		123		236		265
Wireline equipment and other		13		10		25		21
Total products		554		699		1,176		1,388
Total operating revenues		5,354		5,889		10,994		11,578

(1) Our service revenues are generally recognized over time.

(2) Our product revenues are generally recognized at a point in time.

Note 5    Operating costs

			THREE MONTHS						SIX MONTHS
FOR THE PERIOD ENDED JUNE 30	NOTE		2020			2019			2020			2019
Labour costs
Wages, salaries and related taxes and benefits				(994	)		(1,085	)		(2,035	)		(2,139	)
Post-employment benefit plans service cost (net of capitalized amounts)		13		(64	)		(58	)		(139	)		(126	)
Other labour costs (1)				(236	)		(257	)		(463	)		(486	)
Less:
Capitalized labour				248			270			494			513
Total labour costs				(1,046	)		(1,130	)		(2,143	)		(2,238	)
Cost of revenues (2)				(1,471	)		(1,706	)		(3,125	)		(3,444	)
Other operating costs (3)				(506	)		(481	)		(977	)		(942	)
Total operating costs				(3,023	)		(3,317	)		(6,245	)		(6,624	)

(1) Other labour costs include contractor and outsourcing costs.

(2) Cost of revenues includes costs of wireless devices and other equipment sold, network and content costs, and payments to other carriers.

(3) Other operating costs include marketing, advertising and sales commission costs, bad debt expense, taxes other than income taxes, information technology costs, professional service fees and rent.

Note 6    Severance, acquisition and other costs

	THREE MONTHS						SIX MONTHS
FOR THE PERIOD ENDED JUNE 30	2020			2019			2020			2019
Severance		(2	)		(20	)		(10	)		(27	)
Acquisition and other		(20	)		(19	)		(28	)		(36	)
Total severance, acquisition and other costs		(22	)		(39	)		(38	)		(63	)

SEVERANCE COSTS

Severance costs consist of charges related to involuntary and voluntary employee terminations.

ACQUISITION AND OTHER COSTS

Acquisition and other costs consist of transaction costs, such as legal and financial advisory fees, related to completed or potential acquisitions, employee severance costs related to the purchase of a business, the costs to integrate acquired companies into our operations, litigation costs, when they are significant, and other costs.

BCE Inc. 2020 Second Quarter Shareholder Report         49

Notes to consolidated financial statements

Note 7    Impairment of assets

During the second quarter of 2020, we identified indicators of impairment for certain of our Bell Media TV services and radio markets, notably declines in advertising revenues, lower subscriber revenues and overall increases in discount rates resulting from the economic impact of the COVID-19 pandemic. Accordingly, impairment testing was required for certain groups of cash-generating units (CGUs) as well as for goodwill.

Impairment charges for the three and six months ended June 30, 2020 of $449 million and $456 million, respectively, related primarily to $452 million of charges for our English and French TV services as well as various radio markets within our Bell Media segment. These charges included $291 million allocated to indefinite-life intangible assets for broadcast licenses, $146 million allocated to finite-life intangible assets, mainly for program and feature film rights, and $15 million to property, plant and equipment for network and infrastructure and equipment. They were determined by comparing the carrying value of the CGUs to their fair value less cost of disposal. We estimated the fair value of the CGUs using both discounted cash flows and market-based valuation models, which include five-year cash flow projections derived from business plans reviewed by senior management for the period of July 1, 2020 to December 31, 2025, using discount rates of 8.0% to 9.5% and a perpetuity growth rate of (1.0)% to nil as well as market multiple data from public companies and market transactions. The carrying value of these CGUs was $942 million at June 30, 2020.

There was no impairment of Bell Media goodwill. For the Bell Media group of CGUs, a decrease of (0.6)% in the perpetuity growth rate or an increase of 0.4% in the discount rate would have resulted in its recoverable amount being equal to its carrying value.

Note 8    Other (expense) income

			THREE MONTHS						SIX MONTHS
FOR THE PERIOD ENDED JUNE 30	NOTE		2020			2019			2020			2019
Losses on retirements and disposals of property, plant and equipment and intangible assets				(54	)		(1	)		(70	)		(6	)
Net mark-to-market (losses) gains on derivatives used to economically hedge equity settled share-based compensation plans				(9	)		12			(37	)		112
Early debt redemption costs		12		–			(18	)		(17	)		(18	)
Equity gains (losses) from investments in associates and joint ventures
Gain (loss) on investment				11			(53	)		21			(53	)
Operations				(24	)		(6	)		(15	)		5
Losses on investments				–			–			–			(4	)
Other				(4	)		12			(9	)		15
Total other (expense) income				(80	)		(54	)		(127	)		51

LOSSES ON RETIREMENTS AND DISPOSALS OF PROPERTY, PLANT AND EQUIPMENT AND INTANGIBLE ASSETS

In Q2 2020, we recorded a loss of $45 million due to a change in strategic direction related to the ongoing development of some of our TV platform assets under construction.

EQUITY GAIN (LOSS) FROM INVESTMENTS IN ASSOCIATES AND JOINT VENTURES

We recorded a gain on investment of $11 million and $21 million for the three and six months ended June 30, 2020, respectively, and a loss on investment of ($53) million for the three and six months ended June 30, 2019, related to equity gains (losses) on our share of an obligation to repurchase at fair value the minority interest in one of BCE’s joint ventures. The obligation is marked to market each reporting period and the gain or loss on investment is recorded as equity gains or losses from investments in associates and joint ventures.

50             BCE Inc. 2020 Second Quarter Shareholder Report

Notes to consolidated financial statements

Note 9    Earnings per share

The following table shows the components used in the calculation of basic and diluted net earnings per common share for earnings attributable to common shareholders.

	THREE MONTHS				SIX MONTHS
FOR THE PERIOD ENDED JUNE 30	2020		2019		2020		2019
Net earnings from continuing operations attributable to common shareholders – basic		233		754		908		1,485
Net earnings from discontinued operations attributable to common shareholders – basic		4		7		9		16
Net earnings attributable to common shareholders – basic		237		761		917		1,501
Dividends declared per common share (in dollars)		0.8325		0.7925		1.6650		1.5850
Weighted average number of common shares outstanding (in millions)
Weighted average number of common shares outstanding – basic		904.3		899.5		904.2		898.9
Assumed exercise of stock options (1)		0.1		0.8		0.2		0.5
Weighted average number of common shares outstanding – diluted (in millions)		904.4		900.3		904.4		899.4

(1) The calculation of the assumed exercise of stock options includes the effect of the average unrecognized future compensation cost of dilutive options. It excludes options for which the exercise price is higher than the average market value of a BCE common share. The number of excluded options was 14,358,128 for the second quarter of 2020 and 9,554,587 for the first half of 2020, compared to 3,379,952 for the second quarter of 2019 and 6,349,240 for the first half of 2019.

Note 10    Trade and other receivables

	NOTE		JUNE 30, 2020			DECEMBER 31, 2019
Trade receivables				2,789			2,981
Allowance for revenue adjustments				(133	)		(104	)
Allowance for doubtful accounts		14		(104	)		(62	)
Current tax receivable				32			23
Other accounts receivable				228			200
Total trade and other receivables				2,812			3,038

Note 11    Other non-current assets

	NOTE		JUNE 30, 2020		DECEMBER 31, 2019
Net assets of post-employment benefit plans		13		765		558
Derivative assets		14		539		200
Long-term receivables				235		142
Investments (1)		14		147		128
Publicly-traded and privately-held investments		14		122		129
Other				123		117
Total other non-current assets				1,931		1,274

(1) These amounts have been pledged as security related to obligations for certain employee benefits and are not available for general use.

Note 12    Debt

On May 14, 2020, Bell Canada issued 2.50% Series M-52 medium term note (MTN) debentures under its 1997 trust indenture, with a principal amount of $1 billion, which mature on May 14, 2030.

On May 14, 2020 and February 13, 2020, Bell Canada issued 3.50% Series M-51 MTN debentures under its 1997 trust indenture, with a principal amount of $500 million and $750 million, respectively, which mature on September 30, 2050.

During the first half of 2020, Bell Canada drew $1,450 million in U.S. dollars ($2,035 million in Canadian dollars) under its $4 billion Canadian dollar committed credit facilities. In Q2 2020, Bell Canada repaid all of the U.S dollar borrowings under such facilities. The borrowings, which were included in long-term debt, were hedged for foreign currency fluctuations through foreign exchange forward contracts. Accordingly, in Q2 2020, the forward contracts used to hedge these borrowings were settled. See Note 14, Financial assets and liabilities, for additional details.

On March 25, 2020, Bell Canada issued 3.35% Series M-47 MTN debentures under its 1997 trust indenture, with a principal amount of $1 billion, which mature on March 12, 2025.

On March 16, 2020, Bell Canada redeemed, prior to maturity, its 4.95% Series M-24 MTN debentures, having an outstanding principal amount of $500 million, which were due on May 19, 2021. We incurred early debt redemption charges of $17 million, which were recorded in Other (expense) income in the income statement.

BCE Inc. 2020 Second Quarter Shareholder Report         51

Notes to consolidated financial statements

Note 13    Post-employment benefit plans

POST-EMPLOYMENT BENEFIT PLANS COST

We provide pension and other benefits for most of our employees. These include defined benefit (DB) pension plans, defined contribution (DC) pension plans and other post-employment benefits (OPEBs).

COMPONENTS OF POST-EMPLOYMENT BENEFIT PLANS SERVICE COST

	THREE MONTHS						SIX MONTHS
FOR THE PERIOD ENDED JUNE 30	2020			2019			2020			2019
DB pension		(55	)		(48	)		(109	)		(96	)
DC pension		(26	)		(25	)		(62	)		(58	)
OPEBs		–			–			(1	)		(1	)
Less:
Capitalized benefit plans cost		17			15			33			29
Total post-employment benefit plans service cost		(64	)		(58	)		(139	)		(126	)
COMPONENTS OF POST-EMPLOYMENT BENEFIT PLANS FINANCING COST
	THREE MONTHS						SIX MONTHS
FOR THE PERIOD ENDED JUNE 30	2020			2019			2020			2019
DB pension		(2	)		(5	)		(5	)		(10	)
OPEBs		(9	)		(10	)		(18	)		(21	)
Total interest on post-employment benefit obligations		(11	)		(15	)		(23	)		(31	)

FUNDED STATUS OF POST-EMPLOYMENT BENEFIT PLANS COST

The following table shows the funded status of our post-employment benefit obligations.

	FUNDED						PARTIALLY FUNDED (1)						UNFUNDED (2)						TOTAL
FOR THE PERIOD ENDED	JUNE 30, 2020			DECEMBER 31, 2019			JUNE 30, 2020			DECEMBER 31, 2019			JUNE 30, 2020			DECEMBER 31, 2019			JUNE 30, 2020			DECEMBER 31, 2019
Present value of post-employment benefit obligations		(25,790	)		(24,961	)		(1,964	)		(1,918	)		(308	)		(300	)		(28,062	)		(27,179	)
Fair value of plan assets		26,493			25,474			374			376			–			–			26,867			25,850
Plan surplus (deficit)		703			513			(1,590	)		(1,542	)		(308	)		(300	)		(1,195	)		(1,329	)

(1) The partially funded plans consist of supplementary executive retirement plans (SERPs) for eligible employees and certain OPEBs. The company partially funds the SERPs through letters of credit and a retirement compensation arrangement account with the Canada Revenue Agency. Certain paid-up life insurance benefits are funded through life insurance contracts.

(2) Our unfunded plans consist of certain OPEBs, which are paid as claims are incurred.

In Q2 2020, we recorded a decrease in our post-employment benefit plans and a loss, before taxes, in Other comprehensive (loss) income from continuing operations of ($2,215) million due to an increase in the present value of our post-employment benefit obligations of ($4,673) million as a result of a decrease in the discount rate to 2.8% at June 30, 2020, compared to 4.2% at March 31, 2020, partly offset by an increase in the fair value of plan assets of $2,458 million as a result of an actual gain on plan assets of 10.7%.

During the first half of 2020, we recorded an increase in our post-employment benefit plans and a gain, before taxes, in Other comprehensive (loss) income from continuing operations of $150 million due to an increase in the fair value of plan assets of $1,207 million as a result of an actual gain on plan assets of 6.5%, partly offset by an increase in the present value of our post-employment benefit obligations of ($1,057) million as a result of a decrease in the discount rate to 2.8% at June 30, 2020, compared to 3.1% at December 31, 2019.

52             BCE Inc. 2020 Second Quarter Shareholder Report

Notes to consolidated financial statements

Note 14    Financial assets and liabilities

FAIR VALUE

The following table provides the fair value details of financial instruments measured at amortized cost in the consolidated statements of financial position.

			JUNE 30, 2020				DECEMBER 31, 2019
	CLASSIFICATION	FAIR VALUE METHODOLOGY	CARRYING VALUE		FAIR VALUE		CARRYING VALUE		FAIR VALUE
CRTC tangible benefits     obligation	Trade payables and other liabilities and other non-current liabilities	Present value of estimated future cash flows discounted using observable market interest rates		12		12		29		29
CRTC deferral account obligation	Trade payables and other liabilities and other non-current liabilities	Present value of estimated future cash flows discounted using observable market interest rates		82		86		82		85
Debt securities and other debt	Debt due within one year and long-term debt	Quoted market price of debt		21,517		25,068		18,653		20,905

The following table provides the fair value details of financial instruments measured at fair value in the consolidated statements of financial position.

					FAIR VALUE
	CLASSIFICATION	CARRYING VALUE OF ASSET (LIABILITY)			QUOTED PRICES IN ACTIVE MARKETS FOR IDENTICAL ASSETS (LEVEL 1)	OBSERVABLE             MARKET DATA     (LEVEL 2) (1)	NON-OBSERVABLE     MARKET INPUTS     (LEVEL 3) (2)
June 30, 2020
Publicly-traded and privately-held investments	Other non-current assets		122		2	–		120
Derivative financial instruments	Other current assets, trade payables and other liabilities, other non-current assets and liabilities		522		–	522		–
Maple Leaf Sports & Entertainment Ltd. (MLSE) financial liability (3)	Trade payables and other liabilities		(138	)	–	–		(138	)
Other	Other non-current assets and liabilities		91		2	147		(58	)
December 31, 2019
Publicly-traded and privately-held investments	Other non-current assets		129		2	–		127
Derivative financial instruments	Other current assets, trade payables and other liabilities, other non-current assets and liabilities		165		–	165		–
MLSE financial liability (3)	Trade payables and other liabilities		(135	)	–	–		(135	)
Other	Other non-current assets and liabilities		71		1	128		(58	)

(1) Observable market data such as equity prices, interest rates, swap rate curves and foreign currency exchange rates.

(2) Non-observable market inputs such as discounted cash flows and earnings multiples. A reasonable change in our assumptions would not result in a significant increase (decrease) to our level 3 financial instruments.

(3) Represents BCE’s obligation to repurchase the BCE Master Trust Fund’s (Master Trust Fund) 9% interest in MLSE at a price not less than an agreed minimum price should the Master Trust Fund exercise its put option. The obligation to repurchase is marked to market each reporting period and the gain or loss is recognized in Other (expense) income in the consolidated income statements. The option has been exercisable since 2017.

CREDIT RISK

We are exposed to credit risk from operating activities and certain financing activities, the maximum exposure of which is represented by the carrying amounts reported in the statements of financial position.

We are exposed to credit risk if counterparties to our trade receivables and derivative instruments are unable to meet their obligations. The concentration of credit risk from our customers is minimized because we have a large and diverse customer base. There was minimal credit risk relating to derivative instruments at June 30, 2020 and December 31, 2019. We deal with institutions that have investment-grade credit ratings, and as such we expect that they will be able to meet their obligations. We regularly monitor our credit risk and credit exposure.

The following table provides the change in allowance for doubtful accounts for trade receivables, which reflects an increase for the period ended June 30, 2020, mainly as a result of the impact of the COVID-19 pandemic.

	NOTE
Balance, January 1, 2020			(62	)
Additions			(90	)
Usage			48
Balance, June 30, 2020		10	(104	)

In many instances, trade receivables are written off directly to bad debt expense if the account has not been collected after a predetermined period of time.

BCE Inc. 2020 Second Quarter Shareholder Report         53

Notes to consolidated financial statements

The following table provides further details on trade receivables, net of allowance for doubtful accounts.

	JUNE 30, 2020		DECEMBER 31, 2019
Trade receivables not past due		1,926		2,082
Trade receivables past due
Under 60 days		395		541
60 to 120 days		252		232
Over 120 days		112		64
Trade receivables, net of allowance for doubtful accounts		2,685		2,919

MARKET RISK

CURRENCY EXPOSURES

We use forward contracts, options and cross currency basis swaps to manage foreign currency risk related to anticipated purchases and sales and certain foreign currency debt.

During the first half of 2020, we entered into foreign exchange forward contracts with a notional amount of $1,453 million in U.S. dollars ($2,039 million in Canadian dollars) to hedge the foreign currency risk associated with amounts drawn under our $4 billion Canadian dollar committed credit facilities. These foreign exchange contracts have matured at June 30, 2020. A loss of $30 million and $14 million, for the three and six months ended June 30, 2020, respectively, relating to these foreign exchange forward contracts is recognized in Other (expense) income in the consolidated income statements, which offsets the foreign currency gain on the repayment of drawdowns under the credit facilities.

A 10% depreciation (appreciation) in the value of the Canadian dollar relative to the U.S. dollar would result in a gain (loss) of $1 million ($55 million) recognized in net earnings from continuing operations at June 30, 2020 and a gain (loss) of $228 million recognized in Other comprehensive (loss) income from continuing operations at June 30, 2020, with all other variables held constant.

A 10% depreciation (appreciation) in the value of the Canadian dollar relative to the Philippines Peso would result in a gain (loss) of $2 million in Other comprehensive (loss) income from continuing operations at June 30, 2020, with all other variables held constant.

The following table provides further details on our outstanding foreign currency forward contracts and options as at June 30, 2020.

TYPE OF HEDGE

BUY CURRENCY

AMOUNT TO RECEIVE

SELL CURRENCY

AMOUNT TO PAY

MATURITY

HEDGED ITEM

Cash flow

USD

200

CAD

279

2020

Commercial paper

Cash flow

USD

370

CAD

480

2020

Anticipated transactions

Cash flow

PHP

1,012

CAD

26

2020

Anticipated transactions

Cash flow

USD

588

CAD

768

2021

Anticipated transactions

Economic

USD

26

CAD

36

2021

Anticipated transactions

Economic – put options

USD

209

CAD

284

2020

Anticipated transactions

Economic – put options

USD

214

CAD

284

2021

Anticipated transactions

Economic – call options

USD

149

CAD

201

2020

Anticipated transactions

Economic – call options

CAD

87

USD

60

2020

Anticipated transactions

Economic – call options

USD

47

CAD

65

2021

Anticipated transactions

Economic – call options

CAD

68

USD

47

2021

Anticipated transactions

Economic – options (1)

USD

60

CAD

81

2020

Anticipated transactions

Economic – options (1)

USD

120

CAD

161

2021

Anticipated transactions

(1) Foreign currency options with a leverage provision and a profit cap limitation.

INTEREST RATE EXPOSURES

During Q1 2020, we entered into a series of interest rate options to economically hedge the dividend rate resets on $582 million of our preferred shares having varying reset dates in 2021. The fair value of these interest rate options at June 30, 2020 was a net liability of $5 million, recognized in Other current assets, Trade payables and other liabilities, Other non-current assets and Other non-current liabilities in the consolidated statements of financial position. A loss of $3 million and $5 million for the three and six months ended June 30, 2020, respectively, relating to these interest rate options is recognized in Other (expense) income in the consolidated income statements.

A 1% increase (decrease) in interest rates would result in a decrease (increase) of $31 million ($38 million) in net earnings from continuing operations at June 30, 2020.

EQUITY PRICE EXPOSURES

We use equity forward contracts on BCE’s common shares to economically hedge the cash flow exposure related to the settlement of equity settled share-based compensation plans and the equity price risk related to a cash-settled share-based payment plan. The fair value of our equity forward contracts at June 30, 2020 was a net liability of $39 million, recognized in Other current assets, Trade payables and other liabilities, Other non-current assets and Other non-current liabilities in the consolidated statements of financial position. The fair value of our equity forward contracts at December 31, 2019 was an asset of $40 million recognized in Other current assets and Other non-current assets in the consolidated statements of financial position. A loss of $9 million and $37 million for the three and six months ended June 30, 2020, respectively, relating to these equity forward contracts is recognized in Other (expense) income in the consolidated income statements.

54             BCE Inc. 2020 Second Quarter Shareholder Report

Notes to consolidated financial statements

A 5% increase (decrease) in the market price of BCE’s common shares at June 30, 2020 would result in a gain (loss) of $40 million recognized in net earnings from continuing operations, with all other variables held constant.

COMMODITY PRICE EXPOSURE

In Q1 2020, we entered into fuel swaps to economically hedge the purchase cost of fuel in 2020 and 2021. The fair value of our fuel swaps at June 30, 2020 was an asset of $2 million included in Other current assets and Other non-current assets in the consolidated statements of financial position. A gain of $6 million and $2 million for the three and six months ended June 30, 2020, respectively, is recognized in Other (expense) income in the consolidated income statements.

A 25% increase (decrease) in the market price of fuel at June 30, 2020 would result in a gain (loss) of $4 million recognized in net earnings from continuing operations, with all other variables held constant.

Note 15    Share-based payments

The following share-based payment amounts are included in the income statements as operating costs.

	THREE MONTHS						SIX MONTHS
FOR THE PERIOD ENDED JUNE 30	2020			2019			2020			2019
ESP		(8	)		(8	)		(16	)		(15	)
Restricted share units (RSUs) and performance share units (PSUs)		(13	)		(11	)		(29	)		(31	)
Other (1)		(2	)		(2	)		(5	)		(6	)
Total share-based payments		(23	)		(21	)		(50	)		(52	)

(1) Includes deferred share plan (DSP), deferred share units (DSUs) and stock options.

The following tables summarize the change in unvested ESP contributions and outstanding RSUs/PSUs, DSUs and stock options for the period ended June 30, 2020.

ESP

	NUMBER OF ESP SHARES
Unvested contributions, January 1, 2020		1,124,198
Contributions (1)		316,202
Dividends credited		29,520
Vested		(274,732	)
Forfeited		(50,017	)
Unvested contributions, June 30, 2020		1,145,171

(1)   The weighted average fair value of the shares contributed during the six months ended June 30, 2020 was $58.

RSUs/PSUs

	NUMBER OF RSUs/PSUs
Outstanding, January 1, 2020		2,915,118
Granted (1)		861,582
Dividends credited		79,152
Settled		(923,059	)
Forfeited		(21,307	)
Outstanding, June 30, 2020		2,911,486

(1) The weighted average fair value of the RSUs/PSUs granted during the six months ended June 30, 2020 was $63.

DSUs

	NUMBER OF DSUs
Outstanding, January 1, 2020		4,623,099
Issued (1)		62,996
Settlement of RSUs/PSUs		90,435
Dividends credited		128,403
Settled		(595,189	)
Outstanding, June 30, 2020		4,309,744

(1) The weighted average fair value of the DSUs issued during the six months ended June 30, 2020 was $62.

BCE Inc. 2020 Second Quarter Shareholder Report         55

Notes to consolidated financial statements

STOCK OPTIONS

	NUMBER OF OPTIONS			WEIGHTED AVERAGE EXERCISE PRICE ($)
Outstanding, January 1, 2020		12,825,541			57
Granted		3,410,150			65
Exercised (1)		(419,546	)		53
Forfeited		(41,845	)		60
Outstanding, June 30, 2020		15,774,300			59
Exercisable, June 30, 2020		5,299,256			58

(1) The weighted average market share price for options exercised during the six months ended June 30, 2020 was $64.

ASSUMPTIONS USED IN STOCK OPTION PRICING MODEL

The fair value of options granted was determined using a variation of a binomial option pricing model that takes into account factors specific to the share incentive plans, such as the vesting period. The following table shows the principal assumptions used in the valuation.

	2020
Weighted average fair value per option granted		$1.55
Weighted average share price		$63
Weighted average exercise price		$65
Expected dividend growth		5	%
Expected volatility		12	%
Risk-free interest rate		1	%
Expected life (years)		4

Expected dividend growth is commensurate with BCE’s dividend growth strategy. Expected volatility is based on the historical volatility of BCE’s share price. The risk-free rate used is equal to the yield available on Government of Canada bonds at the date of grant with a term equal to the expected life of the options.

Note 16    COVID-19

Although our telecommunications, media and broadcasting operations have been recognized by Canadian governments as essential services, our business has nonetheless, in the second quarter of 2020, been negatively impacted by the emergency measures adopted to combat the spread of COVID-19 and the resulting adverse economic conditions. All of our segments have been adversely affected, but we have seen a more pronounced impact on media advertising revenues, wireless product sales and outbound roaming revenues. Given that emergency measures taken to address the COVID-19 pandemic remained in place for most or all, as the case may be, of the second quarter and that certain of these measures gradually started being eased only in the latter part of the second quarter, such measures had a more significant impact on our second quarter financial results than on our first quarter financial results. Depending on the severity and duration of COVID-19 disruptions, including possible resurgences in the number of COVID-19 cases, our operations and financial results could continue to be significantly and negatively impacted in future periods. It is not possible at this time to estimate the magnitude of such future impacts.

56             BCE Inc. 2020 Second Quarter Shareholder Report

This document has been filed by BCE Inc. with the Canadian provincial securities regulatory authorities and the U.S. Securities and Exchange Commission. It can be found on BCE Inc.’s website at BCE.ca, on SEDAR at www.sedar.com and on EDGAR at www.sec.gov or is available upon request from:	For further information concerning BCE Inc.’s Dividend Reinvestment and Stock Purchase Plan (DRP), direct deposit of dividend payments, the elimination of multiple mailings or the receipt of quarterly reports, please contact:
	AST TRUST COMPANY (CANADA)
INVESTOR RELATIONS	1 Toronto Street, Suite 1200
Building A, 8th floor	Toronto, Ontario M5C 2V6
1 Carrefour Alexander-Graham-Bell Verdun, Québec H3E 3B3	tel:        416 682-3861 or 1 800 561-0934 fax:       514 985-8843 or 1 888 249-6189
e-mail: investor.relations@bce.ca	e-mail:  bce@astfinancial.com
tel:         1-800-339-6353
fax:        514-786-3970
BCE.ca
For additional copies of this document, please contact investor relations.
Pour obtenir un exemplaire de la version française de ce document, contactez les Relations avec les investisseurs.

bce.ca

EX-99.2

Exhibit 99.2

Q2	Supplementary Financial Information Second Quarter 2020
BCE Investor Relations Thane Fotopoulos 514-870-4619 thane.fotopoulos@bell.ca

BCE ^{(1) (2) (3)}

Consolidated Operational Data

(In millions of Canadian dollars, except share amounts) (unaudited)	Q2 2020			Q2 2019			$ change			% change		YTD 2020			YTD 2019			$ change			% change
Operating revenues
Service		4,800			5,190			(390	)		(7.5%)		9,818			10,190			(372	)		(3.7%)
Product		554			699			(145	)		(20.7%)		1,176			1,388			(212	)		(15.3%)
Total operating revenues		5,354			5,889			(535	)		(9.1%)		10,994			11,578			(584	)		(5.0%)
Operating costs (A)		(2,959	)		(3,259	)		300			9.2%		(6,106	)		(6,498	)		392			6.0%
Post-employment benefit plans service cost		(64	)		(58	)		(6	)		(10.3%)		(139	)		(126	)		(13	)		(10.3%)
Adjusted EBITDA (4)		2,331			2,572			(241	)		(9.4%)		4,749			4,954			(205	)		(4.1%)
Adjusted EBITDA margin (4)		43.5%			43.7%						(0.2) pts		43.2%			42.8%						0.4 pts
Severance, acquisition and other costs		(22	)		(39	)		17			43.6%		(38	)		(63	)		25			39.7%
Depreciation		(869	)		(879	)		10			1.1%		(1,727	)		(1,752	)		25			1.4%
Amortization		(234	)		(220	)		(14	)		(6.4%)		(464	)		(437	)		(27	)		(6.2%)
Finance costs
Interest expense		(280	)		(279	)		(1	)		(0.4%)		(557	)		(560	)		3			0.5%
Interest on post-employment benefit obligations		(11	)		(15	)		4			26.7%		(23	)		(31	)		8			25.8%
Impairment of assets		(449	)		(1	)		(448	)		n.m.		(456	)		(5	)		(451	)		n.m.
Other (expense) income		(80	)		(54	)		(26	)		(48.1%)		(127	)		51			(178	)		n.m.
Income taxes		(96	)		(275	)		179			65.1%		(339	)		(565	)		226			40.0%
Net earnings from continuing operations		290			810			(520	)		(64.2%)		1,018			1,592			(574	)		(36.1%)
Net earnings from discontinued operations		4			7			(3	)		(42.9%)		9			16			(7	)		(43.8%)
Net earnings		294			817			(523	)		(64.0%)		1,027			1,608			(581	)		(36.1%)
Net earnings from continuing operations attributable to:
Common shareholders		233			754			(521	)		(69.1%)		908			1,485			(577	)		(38.9%)
Preferred shareholders		34			38			(4	)		(10.5%)		72			76			(4	)		(5.3%)
Non-controlling interest		23			18			5			27.8%		38			31			7			22.6%
Net earnings from continuing operations		290			810			(520	)		(64.2%)		1,018			1,592			(574	)		(36.1%)
Net earnings attributable to:
Common shareholders		237			761			(524	)		(68.9%)		917			1,501			(584	)		(38.9%)
Preferred shareholders		34			38			(4	)		(10.5%)		72			76			(4	)		(5.3%)
Non-controlling interest		23			18			5			27.8%		38			31			7			22.6%
Net earnings		294			817			(523	)		(64.0%)		1,027			1,608			(581	)		(36.1%)
Net earnings per common share - basic and diluted
Continuing operations	$	0.26		$	0.84		$	(0.58	)		(69.0%)	$	1.00		$	1.65		$	(0.65	)		(39.4%)
Discontinued operations	$	-		$	0.01		$	(0.01	)		(100.0%)	$	0.01		$	0.02		$	(0.01	)		(50.0%)
Net earnings per common share - basic and diluted	$	0.26		$	0.85		$	(0.59	)		(69.4%)	$	1.01		$	1.67		$	(0.66	)		(39.5%)
Dividends per common share	$	0.8325		$	0.7925		$	0.04			5.0%	$	1.6650		$	1.5850		$	0.08			5.0%
Weighted average number of common shares outstanding - basic (millions)		904.3			899.5								904.2			898.9
Weighted average number of common shares outstanding - diluted (millions)		904.4			900.3								904.4			899.4
Number of common shares outstanding (millions)		904.3			900.1								904.3			900.1
Adjusted net earnings and EPS
Net earnings attributable to common shareholders		237			761			(524	)		(68.9%)		917			1,501			(584	)		(38.9%)
Severance, acquisition and other costs		16			28			(12	)		(42.9%)		28			46			(18	)		(39.1%)
Net mark-to-market losses (gains) on derivatives used to economically hedge equity settled share-based compensation plans		7			(9	)		16			n.m.		27			(82	)		109			n.m.
Net (gains) losses on investments		(11	)		53			(64	)		n.m.		(21	)		57			(78	)		n.m.
Early debt redemption costs		-			13			(13	)		(100.0%)		12			13			(1	)		(7.7%)
Impairment of assets		328			1			327			n.m.		333			4			329			n.m.
Net earnings from discontinued operations		(4	)		(7	)		3			42.9%		(9	)		(16	)		7			43.8%
Adjusted net earnings (4)		573			840			(267	)		(31.8%)		1,287			1,523			(236	)		(15.5%)
Impact on net earnings per share	$	0.37		$	0.09		$	0.28			n.m.	$	0.42		$	0.04		$	0.38			n.m.
Adjusted EPS (4)	$	0.63		$	0.93		$	(0.30	)		(32.3%)	$	1.42		$	1.69		$	(0.27	)		(16.0%)

n.m. : not meaningful

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

BCE Supplementary Financial Information - Second Quarter 2020 Page 2

BCE

Consolidated Operational Data - Historical Trend

(In millions of Canadian dollars, except share amounts) (unaudited)	YTD 2020			Q2 20			Q1 20			TOTAL 2019			Q4 19			Q3 19			Q2 19			Q1 19
Operating revenues
Service		9,818			4,800			5,018			20,566			5,235			5,141			5,190			5,000
Product		1,176			554			622			3,227			1,040			799			699			689
Total operating revenues		10,994			5,354			5,640			23,793			6,275			5,940			5,889			5,689
Operating costs (A)		(6,106	)		(2,959	)		(3,147	)		(13,541	)		(3,731	)		(3,312	)		(3,259	)		(3,239	)
Post-employment benefit plans service cost		(139	)		(64	)		(75	)		(246	)		(60	)		(60	)		(58	)		(68	)
Adjusted EBITDA		4,749			2,331			2,418			10,006			2,484			2,568			2,572			2,382
Adjusted EBITDA margin		43.2%			43.5%			42.9%			42.1%			39.6%			43.2%			43.7%			41.9%
Severance, acquisition and other costs		(38	)		(22	)		(16	)		(114	)		(28	)		(23	)		(39	)		(24	)
Depreciation		(1,727	)		(869	)		(858	)		(3,458	)		(854	)		(852	)		(879	)		(873	)
Amortization		(464	)		(234	)		(230	)		(886	)		(224	)		(225	)		(220	)		(217	)
Finance costs
Interest expense		(557	)		(280	)		(277	)		(1,125	)		(285	)		(280	)		(279	)		(281	)
Interest on post-employment benefit obligations		(23	)		(11	)		(12	)		(63	)		(16	)		(16	)		(15	)		(16	)
Impairment of assets		(456	)		(449	)		(7	)		(102	)		(96	)		(1	)		(1	)		(4	)
Other (expense) income		(127	)		(80	)		(47	)		95			(18	)		62			(54	)		105
Income taxes		(339	)		(96	)		(243	)		(1,129	)		(245	)		(319	)		(275	)		(290	)
Net earnings from continuing operations		1,018			290			728			3,224			718			914			810			782
Net earnings from discontinued operations		9			4			5			29			5			8			7			9
Net earnings		1,027			294			733			3,253			723			922			817			791
Net earnings from continuing operations attributable to:
Common shareholders		908			233			675			3,011			667			859			754			731
Preferred shareholders		72			34			38			151			38			37			38			38
Non-controlling interest		38			23			15			62			13			18			18			13
Net earnings from continuing operations		1,018			290			728			3,224			718			914			810			782
Net earnings attributable to:
Common shareholders		917			237			680			3,040			672			867			761			740
Preferred shareholders		72			34			38			151			38			37			38			38
Non-controlling interest		38			23			15			62			13			18			18			13
Net earnings		1,027			294			733			3,253			723			922			817			791
Net earnings per common share - basic and diluted
Continuing operations	$	1.00		$	0.26		$	0.74		$	3.34		$	0.73		$	0.96		$	0.84		$	0.81
Discontinued operations	$	0.01		$	-		$	0.01		$	0.03		$	0.01		$	-		$	0.01		$	0.01
Net earnings per common share - basic and diluted	$	1.01		$	0.26		$	0.75		$	3.37		$	0.74		$	0.96		$	0.85		$	0.82
Dividends per common share	$	1.6650		$	0.8325		$	0.8325		$	3.1700		$	0.7925		$	0.7925		$	0.7925		$	0.7925
Weighted average number of common shares outstanding - basic (millions)		904.2			904.3			904.1			900.8			903.8			901.4			899.5			898.4
Weighted average number of common shares outstanding - diluted (millions)		904.4			904.4			904.5			901.4			904.8			902.2			900.3			898.7
Number of common shares outstanding (millions)		904.3			904.3			904.3			903.9			903.9			903.7			900.1			898.8
Adjusted net earnings and EPS
Net earnings attributable to common shareholders		917			237			680			3,040			672			867			761			740
Severance, acquisition and other costs		28			16			12			83			20			17			28			18
Net mark-to-market losses (gains) on derivatives used to economically hedge equity settled share-based compensation plans		27			7			20			(101	)		45			(64	)		(9	)		(73	)
Net (gains) losses on investments		(21	)		(11	)		(10	)		39			(18	)		-			53			4
Early debt redemption costs		12			-			12			13			-			-			13			-
Impairment of assets		333			328			5			74			70			-			1			3
Net earnings from discontinued operations		(9	)		(4	)		(5	)		(29	)		(5	)		(8	)		(7	)		(9	)
Adjusted net earnings		1,287			573			714			3,119			784			812			840			683
Impact on net earnings per share	$	0.42		$	0.37		$	0.05		$	0.12		$	0.13		$	(0.05	)	$	0.09		$	(0.05	)
Adjusted EPS	$	1.42		$	0.63		$	0.79		$	3.46		$	0.86		$	0.91		$	0.93		$	0.76

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

BCE Supplementary Financial Information - Second Quarter 2020 Page 3

BCE ^{(1) (2) (3)}

Segmented Data

(In millions of Canadian dollars, except where otherwise indicated) (unaudited)	Q2 2020			Q2 2019			$ change			% change		YTD 2020			YTD 2019			$ change			% change
Operating revenues
Bell Wireless		1,922			2,160			(238	)		(11.0%)		3,957			4,237			(280	)		(6.6%)
Bell Wireline		3,043			3,073			(30	)		(1.0%)		6,079			6,125			(46	)		(0.8%)
Bell Media		579			842			(263	)		(31.2%)		1,331			1,587			(256	)		(16.1%)
Inter-segment eliminations		(190	)		(186	)		(4	)		(2.2%)		(373	)		(371	)		(2	)		(0.5%)
Total		5,354			5,889			(535	)		(9.1%)		10,994			11,578			(584	)		(5.0%)
Operating costs
Bell Wireless		(1,043	)		(1,192	)		149			12.5%		(2,150	)		(2,377	)		227			9.5%
Bell Wireline		(1,764	)		(1,723	)		(41	)		(2.4%)		(3,465	)		(3,450	)		(15	)		(0.4%)
Bell Media		(406	)		(588	)		182			31.0%		(1,003	)		(1,168	)		165			14.1%
Inter-segment eliminations		190			186			4			2.2%		373			371			2			0.5%
Total		(3,023	)		(3,317	)		294			8.9%		(6,245	)		(6,624	)		379			5.7%
Adjusted EBITDA
Bell Wireless		879			968			(89	)		(9.2%)		1,807			1,860			(53	)		(2.8%)
Margin		45.7%			44.8%						0.9 pts		45.7%			43.9%						1.8 pts
Bell Wireline		1,279			1,350			(71	)		(5.3%)		2,614			2,675			(61	)		(2.3%)
Margin		42.0%			43.9%						(1.9) pts		43.0%			43.7%						(0.7) pts
Bell Media		173			254			(81	)		(31.9%)		328			419			(91	)		(21.7%)
Margin		29.9%			30.2%						(0.3) pts		24.6%			26.4%						(1.8) pts
Total		2,331			2,572			(241	)		(9.4%)		4,749			4,954			(205	)		(4.1%)
Margin		43.5%			43.7%						(0.2) pts		43.2%			42.8%						0.4 pts
Capital expenditures
Bell Wireless		182			159			(23	)		(14.5%)		312			307			(5	)		(1.6%)
Capital intensity (5)		9.5%			7.4%						(2.1) pts		7.9%			7.2%						(0.7) pts
Bell Wireline		694			784			90			11.5%		1,316			1,459			143			9.8%
Capital intensity		22.8%			25.5%						2.7 pts		21.6%			23.8%						2.2 pts
Bell Media		24			24			-			-		49			49			-			-
Capital intensity		4.1%			2.9%						(1.2) pts		3.7%			3.1%						(0.6) pts
Total		900			967			67			6.9%		1,677			1,815			138			7.6%
Capital intensity		16.8%			16.4%						(0.4) pts		15.3%			15.7%						0.4 pts

BCE Supplementary Financial Information - Second Quarter 2020 Page 4

BCE

Segmented Data - Historical Trend

(In millions of Canadian dollars, except where otherwise indicated) (unaudited)	TOTAL 2020			Q2 20			Q1 20		TOTAL 2019			Q4 19			Q3 19			Q2 19			Q1 19
Operating revenues
Bell Wireless		3,957			1,922			2,035		9,001			2,454			2,310			2,160			2,077
Bell Wireline		6,079			3,043			3,036		12,317			3,135			3,057			3,073			3,052
Bell Media		1,331			579			752		3,217			879			751			842			745
Inter-segment eliminations		(373	)		(190	)		(183)		(742	)		(193	)		(178	)		(186	)		(185	)
Total		10,994			5,354			5,640		23,793			6,275			5,940			5,889			5,689
Operating costs
Bell Wireless		(2,150	)		(1,043	)		(1,107)		(5,210	)		(1,523	)		(1,310	)		(1,192	)		(1,185	)
Bell Wireline		(3,465	)		(1,764	)		(1,701)		(6,952	)		(1,787	)		(1,715	)		(1,723	)		(1,727	)
Bell Media		(1,003	)		(406	)		(597)		(2,367	)		(674	)		(525	)		(588	)		(580	)
Inter-segment eliminations		373			190			183		742			193			178			186			185
Total		(6,245	)		(3,023	)		(3,222)		(13,787	)		(3,791	)		(3,372	)		(3,317	)		(3,307	)
Adjusted EBITDA
Bell Wireless		1,807			879			928		3,791			931			1,000			968			892
Margin		45.7%			45.7%			45.6%		42.1%			37.9%			43.3%			44.8%			42.9%
Bell Wireline		2,614			1,279			1,335		5,365			1,348			1,342			1,350			1,325
Margin		43.0%			42.0%			44.0%		43.6%			43.0%			43.9%			43.9%			43.4%
Bell Media		328			173			155		850			205			226			254			165
Margin		24.6%			29.9%			20.6%		26.4%			23.3%			30.1%			30.2%			22.1%
Total		4,749			2,331			2,418		10,006			2,484			2,568			2,572			2,382
Margin		43.2%			43.5%			42.9%		42.1%			39.6%			43.2%			43.7%			41.9%
Capital expenditures
Bell Wireless		312			182			130		671			203			161			159			148
Capital intensity		7.9%			9.5%			6.4%		7.5%			8.3%			7.0%			7.4%			7.1%
Bell Wireline		1,316			694			622		3,195			910			826			784			675
Capital intensity		21.6%			22.8%			20.5%		25.9%			29.0%			27.0%			25.5%			22.1%
Bell Media		49			24			25		108			37			22			24			25
Capital intensity		3.7%			4.1%			3.3%		3.4%			4.2%			2.9%			2.9%			3.4%
Total		1,677			900			777		3,974			1,150			1,009			967			848
Capital intensity		15.3%			16.8%			13.8%		16.7%			18.3%			17.0%			16.4%			14.9%

BCE Supplementary Financial Information - Second Quarter 2020 Page 5

Bell Wireless ^{(1) (3)}

(In millions of Canadian dollars, except where otherwise indicated) (unaudited)	Q2 2020		Q2 2019		% change		YTD 2020		YTD 2019		% change
Bell Wireless
Operating revenues
External service revenues	1,481		1,580		(6.3%	)	3,016		3,108		(3.0%	)
Inter-segment service revenues	12		12		-		24		24		-
Total operating service revenues	1,493		1,592		(6.2%	)	3,040		3,132		(2.9%	)
External product revenues	428		566		(24.4%	)	915		1,102		(17.0%	)
Inter-segment product revenues	1		2		(50.0%	)	2		3		(33.3%	)
Total operating product revenues	429		568		(24.5%	)	917		1,105		(17.0%	)
Total external revenues	1,909		2,146		(11.0%	)	3,931		4,210		(6.6%	)
Total operating revenues	1,922		2,160		(11.0%	)	3,957		4,237		(6.6%	)
Operating costs	(1,043	)	(1,192	)	12.5%		(2,150	)	(2,377	)	9.5%
Adjusted EBITDA	879		968		(9.2%	)	1,807		1,860		(2.8%	)
Adjusted EBITDA margin (Total operating revenues)	45.7%		44.8%		0.9 pts		45.7%		43.9%		1.8 pts
Capital expenditures	182		159		(14.5%	)	312		307		(1.6%	)
Capital intensity	9.5%		7.4%		(2.1) pts		7.9%		7.2%		(0.7) pts
Wireless subscriber gross activations (5)	372,710		517,650		(28.0%	)	779,129		927,951		(16.0%	)
Postpaid	243,166		375,094		(35.2%	)	525,578		695,652		(24.4%	)
Prepaid	129,544		142,556		(9.1%	)	253,551		232,299		9.1%
Wireless subscriber net activations	34,702		149,478		(76.8%	)	54,297		187,760		(71.1%	)
Postpaid	21,632		102,980		(79.0%	)	45,282		153,184		(70.4%	)
Prepaid	13,070		46,498		(71.9%	)	9,015		34,576		(73.9%	)
Wireless subscribers end of period (EOP)	10,012,259		9,630,313		4.0%		10,012,259		9,630,313		4.0%
Postpaid	9,205,222		8,911,169		3.3%		9,205,222		8,911,169		3.3%
Prepaid	807,037		719,144		12.2%		807,037		719,144		12.2%
Blended average billing per user (ABPU)($/month) (5) (A)	62.77		68.79		(8.8%	)	64.15		68.08		(5.8%	)
Churn (%) (average per month) (5)	1.13%		1.29%		0.16 pts		1.21%		1.30%		0.09 pts
Postpaid	0.82%		1.06%		0.24 pts		0.90%		1.06%		0.16 pts
Prepaid	4.63%		4.20%		(0.43) pts		4.83%		4.34%		(0.49) pts

^(A) In Q1 2020, we updated our definition of ABPU to include monthly billings related to device financing receivables owing from customers on contract. Consequently, we restated previously reported 2019 ABPU for comparability. See Note 5, Key performance indicators (KPIs), for the definition of ABPU.

BCE Supplementary Financial Information - Second Quarter 2020 Page 6

Bell Wireless - Historical Trend

(In millions of Canadian dollars, except where otherwise indicated) (unaudited)	YTD 2020		Q2 20		Q1 20		TOTAL 2019		Q4 19		Q3 19		Q2 19		Q1 19
Bell Wireless
Operating revenues
External service revenues	3,016		1,481		1,535		6,323		1,582		1,633		1,580		1,528
Inter-segment service revenues	24		12		12		49		12		13		12		12
Total operating service revenues	3,040		1,493		1,547		6,372		1,594		1,646		1,592		1,540
External product revenues	915		428		487		2,623		857		664		566		536
Inter-segment product revenues	2		1		1		6		3		-		2		1
Total operating product revenues	917		429		488		2,629		860		664		568		537
Total external revenues	3,931		1,909		2,022		8,946		2,439		2,297		2,146		2,064
Total operating revenues	3,957		1,922		2,035		9,001		2,454		2,310		2,160		2,077
Operating costs	(2,150	)	(1,043	)	(1,107	)	(5,210	)	(1,523	)	(1,310	)	(1,192	)	(1,185	)
Adjusted EBITDA	1,807		879		928		3,791		931		1,000		968		892
Adjusted EBITDA margin (Total operating revenues)	45.7%		45.7%		45.6%		42.1%		37.9%		43.3%		44.8%		42.9%
Capital expenditures	312		182		130		671		203		161		159		148
Capital intensity	7.9%		9.5%		6.4%		7.5%		8.3%		7.0%		7.4%		7.1%
Wireless subscriber gross activations	779,129		372,710		406,419		2,117,517		596,019		593,547		517,650		410,301
Postpaid	525,578		243,166		282,412		1,568,729		455,111		417,966		375,094		320,558
Prepaid	253,551		129,544		124,007		548,788		140,908		175,581		142,556		89,743
Wireless subscriber net activations (losses)	54,297		34,702		19,595		515,409		123,582		204,067		149,478		38,282
Postpaid	45,282		21,632		23,650		401,955		121,599		127,172		102,980		50,204
Prepaid	9,015		13,070		(4,055	)	113,454		1,983		76,895		46,498		(11,922	)
Wireless subscribers EOP	10,012,259		10,012,259		9,977,557		9,957,962		9,957,962		9,834,380		9,630,313		9,480,835
Postpaid	9,205,222		9,205,222		9,183,590		9,159,940		9,159,940		9,038,341		8,911,169		8,808,189
Prepaid	807,037		807,037		793,967		798,022		798,022		796,039		719,144		672,646
Blended ABPU ($/month)(A)	64.15		62.77		65.53		68.36		67.35		69.94		68.79		67.35
Churn (%)(average per month)	1.21%		1.13%		1.30%		1.39%		1.60%		1.34%		1.29%		1.31%
Postpaid	0.90%		0.82%		0.97%		1.13%		1.28%		1.12%		1.06%		1.07%
Prepaid	4.83%		4.63%		5.03%		4.44%		5.14%		3.89%		4.20%		4.49%

^(A) In Q1 2020, we updated our definition of ABPU to include monthly billings related to device financing receivables owing from customers on contract. Consequently, we restated previously reported 2019 ABPU for comparability. See Note 5, Key performance indicators (KPIs), for the definition of ABPU.

BCE Supplementary Financial Information - Second Quarter 2020 Page 7

Bell Wireline ^{(1) (2) (3)}

(In millions of Canadian dollars, except where otherwise indicated) (unaudited)	Q2 2020		Q2 2019		% change		YTD 2020		YTD 2019		% change
Bell Wireline
Operating revenues
Data	1,916		1,914		0.1%		3,807		3,780		0.7%
Voice	863		897		(3.8%	)	1,735		1,804		(3.8%	)
Other services	58		62		(6.5%	)	120		121		(0.8%	)
Total external service revenues	2,837		2,873		(1.3%	)	5,662		5,705		(0.8%	)
Inter-segment service revenues	80		67		19.4%		156		134		16.4%
Total operating service revenues	2,917		2,940		(0.8%	)	5,818		5,839		(0.4%	)
Data	113		123		(8.1%	)	236		265		(10.9%	)
Equipment and other	13		10		30.0%		25		21		19.0%
Total external product revenues	126		133		(5.3%	)	261		286		(8.7%	)
Inter-segment product revenues	-		-		-		-		-		-
Total operating product revenues	126		133		(5.3%	)	261		286		(8.7%	)
Total external revenues	2,963		3,006		(1.4%	)	5,923		5,991		(1.1%	)
Total operating revenues	3,043		3,073		(1.0%	)	6,079		6,125		(0.8%	)
Operating costs	(1,764	)	(1,723	)	(2.4%	)	(3,465	)	(3,450	)	(0.4%	)
Adjusted EBITDA	1,279		1,350		(5.3%	)	2,614		2,675		(2.3%	)
Adjusted EBITDA margin	42.0%		43.9%		(1.9) pts		43.0%		43.7%		(0.7) pts
Capital expenditures	694		784		11.5%		1,316		1,459		9.8%
Capital intensity	22.8%		25.5%		2.7 pts		21.6%		23.8%		2.2 pts
Retail high-speed Internet subscribers (5)
Retail net activations	19,023		19,414		(2.0%	)	41,618		42,085		(1.1%	)
Retail subscribers EOP	3,597,219		3,461,825		3.9%		3,597,219		3,461,825		3.9%
Retail TV subscribers (5)
Retail net subscriber (losses) activations	(15,544	)	2,350		(761.4%	)	(34,099	)	790		n.m.
Internet protocol television (IPTV)	(3,604	)	16,775		(121.5%	)	(752	)	37,691		(102.0%	)
Satellite	(11,940	)	(14,425	)	17.2%		(33,347	)	(36,901	)	9.6%
Total retail subscribers EOP	2,738,365		2,767,201		(1.0%	)	2,738,365		2,767,201		(1.0%	)
IPTV	1,766,430		1,713,397		3.1%		1,766,430		1,713,397		3.1%
Satellite	971,935		1,053,804		(7.8%	)	971,935		1,053,804		(7.8%	)
Retail residential network access services (NAS) (5)
Retail residential NAS lines net losses	(48,405	)	(72,780	)	33.5%		(110,000	)	(139,559	)	21.2%
Retail residential NAS lines	2,587,483		2,821,249		(8.3%	)	2,587,483		2,821,249		(8.3%	)

n.m. : not meaningful

BCE Supplementary Financial Information - Second Quarter 2020 Page 8

Bell Wireline - Historical Trend

(In millions of Canadian dollars, except where otherwise indicated) (unaudited)	YTD 2020		Q2 20		Q1 20		TOTAL 2019		Q4 19		Q3 19		Q2 19		Q1 19
Bell Wireline
Operating revenues
Data	3,807		1,916		1,891		7,617		1,925		1,912		1,914		1,866
Voice	1,735		863		872		3,564		879		881		897		907
Other services	120		58		62		251		69		61		62		59
Total external service revenues	5,662		2,837		2,825		11,432		2,873		2,854		2,873		2,832
Inter-segment service revenues	156		80		76		281		79		68		67		67
Total operating service revenues	5,818		2,917		2,901		11,713		2,952		2,922		2,940		2,899
Data	236		113		123		556		166		125		123		142
Equipment and other	25		13		12		48		17		10		10		11
Total external product revenues	261		126		135		604		183		135		133		153
Inter-segment product revenues	-		-		-		-		-		-		-		-
Total operating product revenues	261		126		135		604		183		135		133		153
Total external revenues	5,923		2,963		2,960		12,036		3,056		2,989		3,006		2,985
Total operating revenues	6,079		3,043		3,036		12,317		3,135		3,057		3,073		3,052
Operating costs	(3,465	)	(1,764	)	(1,701	)	(6,952	)	(1,787	)	(1,715	)	(1,723	)	(1,727	)
Adjusted EBITDA	2,614		1,279		1,335		5,365		1,348		1,342		1,350		1,325
Adjusted EBITDA margin	43.0%		42.0%		44.0%		43.6%		43.0%		43.9%		43.9%		43.4%
Capital expenditures	1,316		694		622		3,195		910		826		784		675
Capital intensity	21.6%		22.8%		20.5%		25.9%		29.0%		27.0%		25.5%		22.1%
Retail high-speed Internet subscribers
Retail net activations	41,618		19,023		22,595		135,861		35,639		58,137		19,414		22,671
Retail subscribers EOP	3,597,219		3,597,219		3,578,196		3,555,601		3,555,601		3,519,962		3,461,825		3,442,411
Retail TV subscribers
Retail net subscriber (losses) activations	(34,099	)	(15,544	)	(18,555	)	6,053		421		4,842		2,350		(1,560	)
IPTV	(752	)	(3,604	)	2,852		91,476		22,039		31,746		16,775		20,916
Satellite	(33,347	)	(11,940	)	(21,407	)	(85,423	)	(21,618	)	(26,904	)	(14,425	)	(22,476	)
Total retail subscribers EOP	2,738,365		2,738,365		2,753,909		2,772,464		2,772,464		2,772,043		2,767,201		2,764,851
IPTV	1,766,430		1,766,430		1,770,034		1,767,182		1,767,182		1,745,143		1,713,397		1,696,622
Satellite	971,935		971,935		983,875		1,005,282		1,005,282		1,026,900		1,053,804		1,068,229
Retail residential network access services (NAS)
Retail residential NAS lines net losses	(110,000	)	(48,405	)	(61,595	)	(263,325	)	(58,110	)	(65,656	)	(72,780	)	(66,779	)
Retail residential NAS lines	2,587,483		2,587,483		2,635,888		2,697,483		2,697,483		2,755,593		2,821,249		2,894,029

BCE Supplementary Financial Information - Second Quarter 2020 Page 9

BCE⁽²⁾

Net debt and other information

BCE - Net debt and preferred shares
(In millions of Canadian dollars, except where otherwise indicated) (unaudited)
																	June 30 2020			March 31 2020			December 31 2019
Debt due within one year																	2,584			4,209			3,881
Long-term debt																	25,024			25,513			22,415
50% of preferred shares																	2,002			2,002			2,002
Cash and cash equivalents																	(1,547	)		(2,679	)		(145	)
Net debt (4)																	28,063			29,045			28,153
Net debt leverage ratio (4)																	2.86			2.89			2.81
Adjusted EBITDA /net interest expense ratio (4)																	8.36			8.58			8.50
Cash flow information
(In millions of Canadian dollars, except where otherwise indicated) (unaudited)		Q2			Q2									YTD			YTD
		2020			2019			$ change			% change			2020			2019			$ change			% change
Free cash flow (FCF) (4)
Cash flows from operating activities		2,562			2,093			469			22.4%			4,013			3,609			404			11.2%
Capital expenditures		(900	)		(967	)		67			6.9%			(1,677	)		(1,815	)		138			7.6%
Cash dividends paid on preferred shares		(33	)		(37	)		4			10.8%			(69	)		(63	)		(6	)		(9.5%)
Cash dividends paid by subsidiaries to non-controlling interest		(12	)		(12	)		-			-			(26	)		(39	)		13			33.3%
Acquisition and other costs paid		11			21			(10	)		(47.6%)			20			50			(30	)		(60.0%)
Cash from discontinued operations (included in cash flows from operating activities)		(17	)		(22	)		5			22.7%			(39	)		(47	)		8			17.0%
FCF		1,611			1,076			535			49.7%			2,222			1,695			527			31.1%
Cash flow information - Historical trend
(In millions of Canadian dollars, except where otherwise indicated) (unaudited)		YTD			Q2			Q1			TOTAL			Q4			Q3			Q2			Q1
	2020			2020			2020			2019			2019			2019			2019			2019
FCF
Cash flows from operating activities		4,013			2,562			1,451			7,958			2,091			2,258			2,093			1,516
Capital expenditures		(1,677	)		(900	)		(777	)		(3,974	)		(1,150	)		(1,009	)		(967	)		(848	)
Cash dividends paid on preferred shares		(69	)		(33	)		(36	)		(147	)		(37	)		(47	)		(37	)		(26	)
Cash dividends paid by subsidiaries to non-controlling interest		(26	)		(12	)		(14	)		(65	)		(14	)		(12	)		(12	)		(27	)
Acquisition and other costs paid		20			11			9			60			7			3			21			29
Cash from discontinued operations (included in cash flows from operating activities)		(39	)		(17	)		(22	)		(94	)		(23	)		(24	)		(22	)		(25	)
FCF		2,222			1,611			611			3,738			874			1,169			1,076			619

BCE Supplementary Financial Information - Second Quarter 2020 Page 10

BCE ⁽²⁾

Consolidated Statements of Financial Position

(In millions of Canadian dollars, except where otherwise indicated) (unaudited)	June 30 2020		March 31 2020		December 31 2019
ASSETS
Current assets
Cash	1,297		943		141
Cash equivalents	250		1,736		4
Trade and other receivables	2,812		2,990		3,038
Inventory	445		487		427
Contract assets	921		1,037		1,111
Contract costs	399		416		415
Prepaid expenses	301		280		194
Other current assets	212		419		190
Assets held for sale	825		-		-
Total current assets	7,462		8,308		5,520
Non-current assets
Contract assets	328		452		533
Contract costs	341		363		368
Property, plant and equipment	26,840		27,432		27,636
Intangible assets	12,897		13,513		13,352
Deferred tax assets	123		90		98
Investments in associates and joint ventures	718		730		698
Other non-current assets	1,931		3,960		1,274
Goodwill	10,551		10,667		10,667
Total non-current assets	53,729		57,207		54,626
Total assets	61,191		65,515		60,146
LIABILITIES
Current liabilities
Trade payables and other liabilities	3,341		3,335		3,954
Contract liabilities	723		725		683
Interest payable	229		192		227
Dividends payable	766		767		729
Current tax liabilities	287		186		303
Debt due within one year	2,584		4,209		3,881
Liabilities held for sale	205		-		-
Total current liabilities	8,135		9,414		9,777
Non-current liabilities
Contract liabilities	216		211		207
Long-term debt	25,024		25,513		22,415
Deferred tax liabilities	3,765		4,444		3,561
Post-employment benefit obligations	1,980		1,603		1,907
Other non-current liabilities	934		906		871
Total non-current liabilities	31,919		32,677		28,961
Total liabilities	40,054		42,091		38,738
EQUITY
Equity attributable to BCE shareholders
Preferred shares	4,004		4,004		4,004
Common shares	20,386		20,386		20,363
Contributed surplus	1,155		1,156		1,178
Accumulated other comprehensive income	386		528		161
Deficit	(5,142	)	(2,990	)	(4,632	)
Total equity attributable to BCE shareholders	20,789		23,084		21,074
Non-controlling interest	348		340		334
Total equity	21,137		23,424		21,408
Total liabilities and equity	61,191		65,515		60,146
Number of common shares outstanding (millions)	904.3		904.3		903.9

BCE Supplementary Financial Information - Second Quarter 2020 Page 11

BCE ⁽²⁾

Consolidated Cash Flow Data

(In millions of Canadian dollars, except where otherwise indicated) (unaudited)	Q2 2020		Q2 2019		$ change		YTD 2020		YTD 2019		$ change
Net earnings from continuing operations	290		810		(520	)	1,018		1,592		(574	)
Adjustments to reconcile net earnings from continuing operations to cash flows from operating activities
Severance, acquisition and other costs	22		39		(17	)	38		63		(25	)
Depreciation and amortization	1,103		1,099		4		2,191		2,189		2
Post-employment benefit plans cost	75		73		2		162		157		5
Net interest expense	275		271		4		545		547		(2	)
Impairment of assets	449		1		448		456		5		451
Losses on investments	-		-		-		-		4		(4	)
Income taxes	96		275		(179	)	339		565		(226	)
Contributions to post-employment benefit plans	(71	)	(70	)	(1	)	(150	)	(151	)	1
Payments under other post-employment benefit plans	(12	)	(19	)	7		(29	)	(37	)	8
Severance and other costs paid	(13	)	(33	)	20		(48	)	(99	)	51
Interest paid	(240	)	(269	)	29		(556	)	(534	)	(22	)
Income taxes paid (net of refunds)	6		(127	)	133		(227	)	(416	)	189
Acquisition and other costs paid	(11	)	(21	)	10		(20	)	(50	)	30
Net change in operating assets and liabilities	576		42		534		255		(273	)	528
Cash from discontinued operations	17		22		(5	)	39		47		(8	)
Cash flows from operating activities	2,562		2,093		469		4,013		3,609		404
Capital expenditures	(900	)	(967	)	67		(1,677	)	(1,815	)	138
Cash dividends paid on preferred shares	(33	)	(37	)	4		(69	)	(63	)	(6	)
Cash dividends paid by subsidiaries to non-controlling interest	(12	)	(12	)	-		(26	)	(39	)	13
Acquisition and other costs paid	11		21		(10	)	20		50		(30	)
Cash from discontinued operations (included in cash flows from operating activities)	(17	)	(22	)	5		(39	)	(47	)	8
Free cash flow	1,611		1,076		535		2,222		1,695		527
Cash from discontinued operations (included in cash flows from operating activities)	17		22		(5	)	39		47		(8	)
Business acquisitions	(23	)	(50	)	27		(23	)	(50	)	27
Acquisition and other costs paid	(11	)	(21	)	10		(20	)	(50	)	30
Other investing activities	(13	)	32		(45	)	(19	)	8		(27	)
Cash used in discontinued operations (included in cash flows from investing activities)	(8	)	(5	)	(3	)	(15	)	(7	)	(8	)
(Decrease) increase in notes payable	(1,204	)	277		(1,481	)	(1,434	)	844		(2,278	)
(Decrease) increase in securitized trade receivables	(400	)	-		(400	)	-		31		(31	)
Issue of long-term debt	1,975		1,405		570		5,256		1,405		3,851
Repayment of long-term debt	(2,221	)	(1,597	)	(624	)	(2,930	)	(1,800	)	(1,130	)
Issue of common shares	-		44		(44	)	22		64		(42	)
Purchase of shares for settlement of share-based payments	(75	)	(10	)	(65	)	(169	)	(86	)	(83	)
Cash dividends paid on common shares	(753	)	(712	)	(41	)	(1,469	)	(1,390	)	(79	)
Other financing activities	(25	)	(33	)	8		(55	)	(39	)	(16	)
Cash used in discontinued operations (included in cash flows from financing activities)	(2	)	(2	)	-		(3	)	(3	)	-
	(2,743	)	(650	)	(2,093	)	(820	)	(1,026	)	206
Net (decrease) increase in cash and cash equivalents	(1,132	)	426		(1,558	)	1,402		669		733
Cash and cash equivalents at beginning of period	2,679		668		2,011		145		425		(280	)
Cash and cash equivalents at end of period	1,547		1,094		453		1,547		1,094		453

BCE Supplementary Financial Information - Second Quarter 2020 Page 12

BCE

Consolidated Cash Flow Data - Historical Trend

(In millions of Canadian dollars, except where otherwise indicated) (unaudited)	YTD 2020			Q2 20			Q1 20			TOTAL 2019			Q4 19			Q3 19			Q2 19			Q1 19
Net earnings from continuing operations		1,018			290			728			3,224			718			914			810			782
Adjustments to reconcile net earnings from continuing operations to cash flows from operating activities
Severance, acquisition and other costs		38			22			16			114			28			23			39			24
Depreciation and amortization		2,191			1,103			1,088			4,344			1,078			1,077			1,099			1,090
Post-employment benefit plans cost		162			75			87			309			76			76			73			84
Net interest expense		545			275			270			1,101			280			274			271			276
Impairment of assets		456			449			7			102			96			1			1			4
Losses on investments		-			-			-			(18	)		(22	)		-			-			4
Income taxes		339			96			243			1,129			245			319			275			290
Contributions to post-employment benefit plans		(150	)		(71	)		(79	)		(290	)		(77	)		(62	)		(70	)		(81	)
Payments under other post-employment benefit plans		(29	)		(12	)		(17	)		(72	)		(18	)		(17	)		(19	)		(18	)
Severance and other costs paid		(48	)		(13	)		(35	)		(167	)		(23	)		(45	)		(33	)		(66	)
Interest paid		(556	)		(240	)		(316	)		(1,079	)		(261	)		(284	)		(269	)		(265	)
Income taxes paid (net of refunds)		(227	)		6			(233	)		(725	)		(221	)		(88	)		(127	)		(289	)
Acquisition and other costs paid		(20	)		(11	)		(9	)		(60	)		(7	)		(3	)		(21	)		(29	)
Net change in operating assets and liabilities		255			576			(321	)		(48	)		176			49			42			(315	)
Cash from discontinued operations		39			17			22			94			23			24			22			25
Cash flows from operating activities		4,013			2,562			1,451			7,958			2,091			2,258			2,093			1,516
Capital expenditures		(1,677	)		(900	)		(777	)		(3,974	)		(1,150	)		(1,009	)		(967	)		(848	)
Cash dividends paid on preferred shares		(69	)		(33	)		(36	)		(147	)		(37	)		(47	)		(37	)		(26	)
Cash dividends paid by subsidiaries to non-controlling interest		(26	)		(12	)		(14	)		(65	)		(14	)		(12	)		(12	)		(27	)
Acquisition and other costs paid		20			11			9			60			7			3			21			29
Cash from discontinued operations (included in cash flows from operating activities)		(39	)		(17	)		(22	)		(94	)		(23	)		(24	)		(22	)		(25	)
Free cash flow		2,222			1,611			611			3,738			874			1,169			1,076			619
Cash from discontinued operations (included in cash flows from operating activities)		39			17			22			94			23			24			22			25
Business acquisitions		(23	)		(23	)		-			(51	)		-			(1	)		(50	)		-
Acquisition and other costs paid		(20	)		(11	)		(9	)		(60	)		(7	)		(3	)		(21	)		(29	)
Other investing activities		(19	)		(13	)		(6	)		7			(5	)		4			32			(24	)
Cash used in discontinued operations (included in cash flows from investing activities)		(15	)		(8	)		(7	)		(18	)		(7	)		(4	)		(5	)		(2	)
(Decrease) increase in notes payable		(1,434	)		(1,204	)		(230	)		(1,073	)		(851	)		(1,066	)		277			567
(Decrease) increase in securitized trade receivables		-			(400	)		400			131			100			-			-			31
Issue of long-term debt		5,256			1,975			3,281			1,954			-			549			1,405			-
Repayment of long-term debt		(2,930	)		(2,221	)		(709	)		(2,221	)		(196	)		(225	)		(1,597	)		(203	)
Issue of common shares		22			-			22			240			15			161			44			20
Purchase of shares for settlement of share-based payments		(169	)		(75	)		(94	)		(142	)		(42	)		(14	)		(10	)		(76	)
Cash dividends paid on common shares		(1,469	)		(753	)		(716	)		(2,819	)		(716	)		(713	)		(712	)		(678	)
Other financing activities		(55	)		(25	)		(30	)		(54	)		(7	)		(8	)		(33	)		(6	)
Cash used in discontinued operations (included in cash flows from financing activities)		(3	)		(2	)		(1	)		(6	)		(2	)		(1	)		(2	)		(1	)
		(820	)		(2,743	)		1,923			(4,018	)		(1,695	)		(1,297	)		(650	)		(376	)
Net increase (decrease) in cash and cash equivalents		1,402			(1,132	)		2,534			(280	)		(821	)		(128	)		426			243
Cash and cash equivalents at beginning of period		145			2,679			145			425			966			1,094			668			425
Cash and cash equivalents at end of period		1,547			1,547			2,679			145			145			966			1,094			668

BCE Supplementary Financial Information - Second Quarter 2020 Page 13

Accompanying Notes

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

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

(2) On June 1, 2020, BCE announced that it had entered into an agreement to sell substantially all of its data centre operations in an all-cash transaction valued at $1.04 billion. The transaction is expected to close in the second half of 2020, subject to customary closing conditions. As a result, we have reclassified amounts related to the announced sale for the previous periods to discontinued operations in our consolidated income statements and consolidated statements of cash flows to make them consistent with the presentation for the current period. We have also reclassified the assets and liabilities of the data centre operations to be sold as held for sale in our consolidated statements of financial position at June 30, 2020, measured at their carrying amount, which is lower than the estimated fair value less costs to sell. Property, plant and equipment and intangible assets included in assets held for sale are no longer depreciated or amortized effective June 1, 2020.

(3) To align with changes in how we manage our business and assess performance, the operating results of our public safety land radio network business are now included within our Bell Wireline segment effective January 1, 2020, with prior periods restated for comparative purposes. Previously, these results were included within our Bell Wireless segment. Our public safety land radio network business, which builds and manages land mobile radio networks primarily for the government sector, is now managed by our Bell Business Markets team in order to better serve our customers with end-to-end communications solutions.

(4) Non-GAAP Financial Measures

In Q2 2020, we updated our definitions of adjusted net earnings, adjusted EPS and free cash flow to exclude the impacts of discontinued operations as they may affect the comparability of our financial results and could potentially distort the analysis of trends in business performance. As a result of this change, prior periods have been restated for comparative purposes.

Adjusted EBITDA and adjusted EBITDA margin

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

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

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

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

BCE Supplementary Financial Information – Second Quarter 2020 Page 14

Adjusted net earnings and adjusted EPS

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

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

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

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

Free cash flow

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

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

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

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

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

Net debt

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

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

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

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

BCE Supplementary Financial Information – Second Quarter 2020 Page 15

Net debt leverage ratio

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

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

Adjusted EBITDA to net interest expense ratio

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

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

(5) Key performance indicators (KPIs)

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

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

Capital intensity is capital expenditures divided by operating revenues.

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

Wireless subscriber unit is comprised of an active revenue-generating unit (e.g. mobile device, tablet or wireless Internet products), with a unique identifier (typically International Mobile Equipment Identity (IMEI) number), that has access to our wireless networks. We report wireless subscriber units in two categories: postpaid and prepaid. Prepaid subscriber units are considered active for a period of 90 days following the expiry of the subscriber’s prepaid balance.

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

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

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

BCE Supplementary Financial Information – Second Quarter 2020 Page 16

EX-99.3

Exhibit 99.3

Form 52-109F2 – Certification of Interim Filings - Full Certificate

I, Mirko Bibic, President and Chief Executive Officer of BCE Inc., certify the following:

1. Review: I have reviewed the interim financial report and interim MD&A (together, the “interim filings”) of BCE Inc. (the “issuer”) for the interim period ended June 30, 2020.

2. No misrepresentations: Based on my knowledge, having exercised reasonable diligence, the interim filings do not contain any untrue statement of a material fact or omit to state a material fact required to be stated or that is necessary to make a statement not misleading in light of the circumstances under which it was made, with respect to the period covered by the interim filings.

3. Fair presentation: Based on my knowledge, having exercised reasonable diligence, the interim financial report together with the other financial information included in the interim filings fairly present in all material respects the financial condition, financial performance and cash flows of the issuer, as of the date of and for the periods presented in the interim filings.

4. Responsibility: The issuer’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (DC&P) and internal control over financial reporting (ICFR), as those terms are defined in National Instrument 52-109 Certification of Disclosure in Issuers’ Annual and Interim Filings, for the issuer.

5. Design: Subject to the limitations, if any, described in paragraphs 5.2 and 5.3, the issuer’s other certifying officer(s) and I have, as at the end of the period covered by the interim filings

A. designed DC&P, or caused it to be designed under our supervision, to provide reasonable assurance that

 I. material information relating to the issuer is made known to us by others, particularly during the period in which the interim filings are being prepared; and

II. information required to be disclosed by the issuer in its annual filings, interim filings or other reports filed or submitted by it under securities legislation is recorded, processed, summarized and reported within the time periods specified in securities legislation; and

B. designed ICFR, or caused it to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with the issuer’s GAAP.

5.1 Control framework: The control framework the issuer’s other certifying officer(s) and I used to design the issuer’s ICFR is the Internal Control-Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).

5.2 N/A

5.3 N/A

6. Reporting changes in ICFR: The issuer has disclosed in its interim MD&A any change in the issuer’s ICFR that occurred during the period beginning on April 1, 2020 and ended on June 30, 2020 that has materially affected, or is reasonably likely to materially affect, the issuer’s ICFR.

Date: August 6, 2020

  (signed) Mirko Bibic

  Mirko Bibic

  President and Chief Executive Officer

Form 52-109F2 – Certification of Interim Filings - Full Certificate

I, Glen LeBlanc, Executive Vice-President and Chief Financial Officer of BCE Inc., certify the following:

1. Review: I have reviewed the interim financial report and interim MD&A (together, the “interim filings”) of BCE Inc. (the “issuer”) for the interim period ended June 30, 2020.

2. No misrepresentations: Based on my knowledge, having exercised reasonable diligence, the interim filings do not contain any untrue statement of a material fact or omit to state a material fact required to be stated or that is necessary to make a statement not misleading in light of the circumstances under which it was made, with respect to the period covered by the interim filings.

3. Fair presentation: Based on my knowledge, having exercised reasonable diligence, the interim financial report together with the other financial information included in the interim filings fairly present in all material respects the financial condition, financial performance and cash flows of the issuer, as of the date of and for the periods presented in the interim filings.

4. Responsibility: The issuer’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (DC&P) and internal control over financial reporting (ICFR), as those terms are defined in National Instrument 52-109 Certification of Disclosure in Issuers’ Annual and Interim Filings, for the issuer.

5. Design: Subject to the limitations, if any, described in paragraphs 5.2 and 5.3, the issuer’s other certifying officer(s) and I have, as at the end of the period covered by the interim filings

A. designed DC&P, or caused it to be designed under our supervision, to provide reasonable assurance that

 I. material information relating to the issuer is made known to us by others, particularly during the period in which the interim filings are being prepared; and

II. information required to be disclosed by the issuer in its annual filings, interim filings or other reports filed or submitted by it under securities legislation is recorded, processed, summarized and reported within the time periods specified in securities legislation; and

B. designed ICFR, or caused it to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with the issuer’s GAAP.

5.1 Control framework: The control framework the issuer’s other certifying officer(s) and I used to design the issuer’s ICFR is the Internal Control-Integrated Framework (2013) issued by the Committee of Sponsoring Organizations of the Treadway Commission (COSO).

5.2 N/A

5.3 N/A

6. Reporting changes in ICFR: The issuer has disclosed in its interim MD&A any change in the issuer’s ICFR that occurred during the period beginning on April 1, 2020 and ended on June 30, 2020 that has materially affected, or is reasonably likely to materially affect, the issuer’s ICFR.

Date: August 6, 2020

  (signed) Glen LeBlanc

  Glen LeBlanc

  Executive Vice-President and Chief

  Financial Officer

EX-99.4

Exhibit 99.4

      

For immediate release

This news release contains forward-looking statements. For a description of related risk factors and assumptions, please see the section entitled “Caution Regarding Forward-Looking Statements” and the other relevant sections of this news release.

BCE reports second quarter 2020 results

● Results underscore resiliency of BCE’s operations, leading broadband networks and strong financial position despite COVID-19 impacts across the business

● Strong cash flows from operating activities up 22.4% to $2,562 million; free cash flow grew 49.7% to $1,611 million

● $5.4 billion of liquidity at end of Q2 provides ample financial flexibility to execute planned 2020 capital investments and BCE common share dividend payments

● 50,121 total wireless, retail Internet and IPTV net customers added in Q2 despite significantly reduced commercial activity; surpassed 10 million wireless subscribers

● BCE adjusted EBITDA down 9.4% as consolidated margin remained essentially stable at 43.5% on 8.9% reduction in operating costs

● Building the best networks: Fibre build program now 55% complete; 400,000 rural locations equipped with Wireless Home Internet technology; launched Canada’s largest mobile 5G network

● Net earnings of $294 million with net earnings attributable to common shareholders of $237 million, or $0.26 per common share; adjusted net earnings of $573 million generated adjusted EPS of $0.63

● Common share dividend of $0.8325 declared for Q3, up 5% over last year

MONTRÉAL, August 6, 2020 – BCE Inc. (TSX, NYSE: BCE) today reported results for the second quarter (Q2) of 2020.

“Even as the impacts of COVID-19 on all sectors of the economy accelerated in the second quarter, Bell continued to expand our next-generation networks in urban and rural Canada, grew broadband wireless and wireline market share with a focus on customer experience, and delivered the ongoing free cash flow growth that fuels both our investment leadership and BCE’s returns to shareholders,” said Mirko Bibic, President and Chief Executive Officer of BCE and Bell Canada. “Bell’s performance in Q2 underscored the scale and resiliency of our networks, the strength of our financial foundation, and the Bell team’s success in keeping Canadians fully connected and informed throughout the COVID-19 crisis.”

“As economic activity continues to build, Bell will continue generating operating momentum while maintaining the financial flexibility to drive both our national investment strategy and the BCE common share dividend. Backed by a strong balance sheet and the best networks, Bell’s dedicated and seasoned team is proud to be playing a critical role in Canada’s recovery,” said Mr. Bibic. “I’m also proud to highlight how the Bell team has come together to address the wide-ranging impacts of systemic racism and inequality with meaningful action at our company – including new corporate targets for Black, Indigenous and People of Colour representation in senior management and young leaders starting their careers – and in our communities, with

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dedicated Bell Let’s Talk support for racialized Canadians and new partnerships with expert advisors to guide and strengthen our response.”

KEY Q2 BUSINESS DEVELOPMENTS

Supporting BIPOC team members and communities

Bell is working to address systemic racism and inequality with new initiatives to support Black, Indigenous and People of Colour (BIPOC) team members and communities. This includes updated targets for BIPOC representation in Bell senior management (at least 25% by 2025) and intern and graduate hiring (at least 40%); new partnerships with Black Professionals in Tech Network and BIPOC TV & Film, including Bell Media’s creation of a Content Diversity Task Force; and the launch of the $5 million Bell Let’s Talk Diversity Fund to support the mental health and wellbeing of racialized Canadians, with inaugural funding for Black Youth Helpline and National Association of Friendship Centres.

COVID-19 response and recovery

Bell has confronted COVID-19 by keeping Canadians connected and informed; prioritizing the health and safety of the public and our team; and supporting our customers and communities with special initiatives. Despite unprecedented demand across our networks, Bell has maintained service availability at 99.99+% throughout the crisis; introduced innovative tactics to champion customer experience (including equipping 12,000 call centre agents to work from home, retraining thousands of team members as service agents and introducing innovative remote installation practices); and launched enhanced online and appointment-based sales options. With appropriate health and safety precautions, Bell call centres resumed operations and are now achieving pre-COVID service levels, while 99% of Bell, The Source and authorized dealer stores and kiosks have reopened nationwide. As part of its support for Canadian communities during COVID-19, Bell Let’s Talk also announced new funding for frontline mental health providers including Kids Help Phone, Canadian Red Cross, Canadian Mental Health Association, Revivre and the Bell True Patriot Love Fund.

Champion customer experience: Virgin Mobile remains #1, CCTS leadership

Virgin Mobile Canada was ranked #1 by J.D. Power in its annual Wireless Customer Care Study for the fourth year in a row, and topped the analyst company’s 2020 Wireless Purchase Experience Study as well. Bell’s strategic focus on customer experience was also reflected in the latest report from the Commission for Complaints for Telecom-television Services (CCTS) in Q2, which shows a 26% drop in the number of CCTS complaints by Bell customers, again the best performance among national carriers.

Best networks: 5G leadership, rural Wireless Home Internet

Bell turned on Canada’s largest 5G wireless network, offering unprecedented mobile data speeds in Montréal, the GTA, Calgary, Edmonton and Vancouver along with Canada’s broadest selection of 5G-capable smartphones. Bell announced that Ericsson will join Nokia as a provider of radio access network equipment for Bell 5G, and we are partnering with Western University to accelerate 5G innovation. Following our accelerated rollout of rural Wireless Home Internet (WHI) service in response to unprecedented demand during COVID-19, Bell announced we will double WHI download speeds for rural Canada with 50/10 Internet access this fall while also expanding WHI service to rural communities throughout the Atlantic provinces.

TV and Media: Bell Streamer, Virgin TV, V acquisition

Our latest television innovation, Bell Streamer is a compact Android device offering all-in-one access to live TV and on-demand content from Bell Alt TV, support for all major streaming

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services, and access to thousands of apps in Google Play. Virgin TV is a new app-based television service that works across iOS and Android smartphones, tablets, laptops and streaming devices, offering Virgin Internet Members an all-new way to watch live TV and on-demand programs. Bell Media completed the acquisition of V, our first French-language conventional TV network and its ad-supported streaming service Noovo.ca, and will unveil a new brand for the network later this month. Bell Media announced its extensive slate of new English-language and French-language programming for the fall season, Crave launched HBO Max programming in Canada and CTV was named the most-watched network in primetime for the 19th straight year.

Bell sells 25 data centres to Equinix

Reinforcing our strategy to focus investment on Canada’s best networks, content and services, Bell agreed to sell 25 of our data centres to Equinix in an all-cash transaction valued at $1.04 billion. Retaining 5 data centres across the country, Bell also becomes the first Equinix Platinum Partner in Canada, enabling Bell Business Markets to provide enterprise clients access to the international scale of Equinix’s integrated network and cloud solutions. All regulatory approvals have been obtained and the transaction is expected to close in the second half of 2020 subject to customary closing conditions.

BCE Q2 RESULTS

Following BCE’s June 1, 2020 announcement that it had agreed to sell substantially all of its data centre operations, we have reclassified amounts related to the announced sale for the previous periods to discontinued operations in our consolidated income statements and consolidated statements of cash flows to make them consistent with the presentation for the current period.

Financial Highlights

($ millions except per share amounts) (unaudited)	Q2 2020		Q2 2019		% change
BCE
Operating revenues		5,354		5,889		(9.1%)
Net earnings		294		817		(64.0%)
Net earnings attributable to common shareholders		237		761		(68.9%)
Adjusted net earnings(1)(2)		573		840		(31.8%)
Adjusted EBITDA(3)		2,331		2,572		(9.4%)
Net earnings per common share (EPS)		0.26		0.85		(69.4%)
Adjusted EPS(1)(2)		0.63		0.93		(32.3%)
Cash flows from operating activities		2,562		2,093		22.4%
Capital expenditures		900		967		6.9%
Free cash flow(1)(4)		1,611		1,076		49.7%

“While reduced economic activity and customer demand across Bell business segments significantly impacted revenue and earnings in Q2, Bell delivered positive postpaid wireless and retail Internet growth as well as significantly improved customer churn including in legacy services such as residential home phone. Despite the COVID-19 driven decline in adjusted EBITDA, free cash flow increased 50% in the quarter to $1.6 billion, with overall free cash flow growth of more than 30% for the first half of the year,” said Glen LeBlanc, Chief Financial Officer for BCE and Bell Canada. “We remain confident in the underlying, long-term fundamentals and performance of BCE, including a healthy balance sheet and substantial, ongoing free cash flow

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generation that provides us with considerable financial flexibility to navigate the COVID-19 recovery while more than meeting all our cash requirements for the balance of 2020.”

● BCE operating revenue was $5,354 million, down 9.1% compared to Q2 2019, due to reduced consumer and commercial activity as COVID-19 negatively impacted financial results across all Bell operating segments. This was comprised of 7.5% lower service revenue of $4,800 million and 20.7% lower product revenue of $554 million.

● Net earnings declined 64.0% to $294 million and net earnings attributable to common shareholders totalled $237 million, or $0.26 per share, down 68.9% and 69.4% respectively. The decreases were the result of higher other expense, which included $452 million of impairment charges related to certain Bell Media TV and radio properties, and lower adjusted EBITDA, partly offset by lower income taxes.

● Adjusted net earnings were $573 million, or $0.63 per common share, down 31.8% and 32.3% respectively, compared to $840 million, or $0.93 per common share, in Q2 2019.

● Adjusted EBITDA decreased 9.4% to $2,331 million, driven by declines of 9.2% at Bell Wireless, 5.3% at Bell Wireline and 31.9% at Bell Media. BCE’s consolidated adjusted EBITDA margin⁽³⁾ was down 0.2 percentage points to 43.5%.

● Total BCE capital expenditures decreased 6.9% to $900 million, for a capital intensity⁽⁵⁾ ratio of 16.8% compared to 16.4% in Q2 last year. The decline was due to fewer new customer service installations and less network construction as Bell continued to focus on stabilizing operations during COVID-19 and ensuring critical service continuity. Despite the slower spending, we continued to invest in the expansion of our fibre network, launched initial mobile 5G service, and accelerated the rollout of Wireless Home Internet to more rural locations in Québec and Ontario.

● BCE cash flows from operating activities increased 22.4% to $2,562 million from $2,093 million last year, due mainly to higher cash from working capital and a delay in income tax installment payments as a result of government COVID-19 relief measures.

● Free cash flow grew 49.7% to $1,611 million, from $1,076 million last year, due to higher cash flows from operating activities, excluding cash from discontinued operations and acquisition and other costs paid, and lower capital expenditures.

Q2 SUBSCRIBER HIGHLIGHTS

● BCE reported 34,702 net new wireless customers (21,632 postpaid and 13,070 prepaid) in Q2, surpassing 10 million total wireless subscribers; 19,023 net new retail Internet customers; a net loss of 3,604 IPTV customers; a net loss of 11,940 retail satellite TV customers; and a net loss of 48,405 retail residential NAS lines. These subscriber results are net of provisions recorded due to COVID-19 for non-paying customers who have not been disconnected.

● BCE wireless and retail Internet, TV and residential NAS connections⁽⁵⁾ totalled 18,935,326, up 1.4% over Q2 2019. The total includes 10,012,259 wireless customers, up 4.0% (including 9,205,222 postpaid customers, an increase of 3.3%, and 807,037 prepaid customers, up 12.2%); 3,597,219 retail Internet subscribers, up 3.9%; 2,738,365 retail TV subscribers, down 1.0% (including 1,766,430 IPTV customers, an increase of 3.1%, and 971,935 retail satellite TV customers, down 7.8%); and 2,587,483 retail residential NAS lines, down 8.3%.

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Q2 OPERATING RESULTS BY SEGMENT

Bell Wireless

● Total wireless operating revenue decreased 11.0% to $1,922 million, driven by lower service and product revenues.

● Service revenue declined 6.2% to $1,493 million, mainly due to lower roaming revenue from reduced travel and the waiving of roaming charges because of COVID-19; lower data overage from continued adoption of unlimited plans and greater customer offloading to home Wi-Fi; and support for customers during the crisis, including the waiving or reduction of certain fees.

● Product revenue was down 24.5% to $429 million as transactions were impacted by retail store closures and reduced consumer activity due to COVID-19.

● Consistent with the decline in revenue, wireless adjusted EBITDA decreased 9.2% to $879 million. However, wireless margin increased 0.9 percentage points to 45.7% due to a 12.5% reduction in operating costs as a result of reduced sales activity.

● Bell added 34,702 total net new postpaid and prepaid customers, compared to 149,478 in Q2 2019.

● Postpaid net additions totalled 21,632, down from 102,980 in Q2 2019. Overall market activity was affected by retail channel closures and fewer promotional offers due to COVID-19, resulting in a 35.2% decline in Q2 postpaid gross additions. This was moderated by an improvement in postpaid customer churn⁽⁵⁾ to 0.82%, our best postpaid churn result ever. This result is net of a provision we took estimating the number of customer deactivations that would have otherwise occurred in the quarter for delayed or non-payment.

● Prepaid net additions were 13,070 compared to 46,498 in Q2 last year, reflecting a 9.1% decrease in gross additions, while prepaid churn increased 0.43 percentage points to 4.63%.

● Bell’s wireless customer base totalled 10,012,259 at the end of Q2, a 4.0% increase over last year, comprising 9,205,222 postpaid subscribers, up 3.3%, and 807,037 prepaid subscribers, up 12.2%.

● Blended average billing per user (ABPU)⁽⁵⁾ decreased 8.8% to $62.77, mainly the result of declines in roaming, data overage and other fee revenue due to COVID-19, as well as the dilutive impact from continued prepaid customer growth.

Bell Wireline

● Total wireline operating revenue decreased 1.0% in Q2 to $3,043 million.

● Service revenue was down 0.8% to $2,917 million, due mainly to ongoing declines in legacy voice, data and satellite TV services; lower business service solutions sales; and the impact of customer accommodations during COVID-19, including fee reductions and delays in implementing planned rate increases for certain residential services. This was partly offset by higher combined Internet and IPTV revenue driven mainly by year-over-year retail subscriber growth.

● Product revenue was down 5.3% to $126 million due to a decline in data equipment sales to large business enterprise customers and a slowdown in overall customer spending during COVID-19.

● Wireline adjusted EBITDA decreased 5.3% in Q2 to $1,279 million. Despite favourable cost impacts from reduced commercial activity and other discretionary cost savings and efficiencies achieved during COVID-19, total operating costs increased 2.4% due to a number of COVID-19 related factors, including the purchase of personal protective equipment, increased cleaning costs and supplies, employee redeployment costs, significant donations of protective masks to healthcare and other frontline workers, and

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higher bad debt expense as a result of an uncertain economic and employment environment. These factors contributed to a 1.9 percentage point decline in margin to 42.0%.

● Bell added 19,023 new retail Internet customers compared to 19,414 in Q2 2019. Higher residential net activations, supported by ongoing expansion of Bell’s all-fibre and Wireless Home Internet footprints as well as fewer customer deactivations during COVID-19, was offset by lower business net activations due to the shutdown of non-essential services during the crisis.

● Retail Internet customers totaled 3,597,219 at the end of Q2, an increase of 3.9% over last year.

● Bell’s retail IPTV customer base declined by 3,604 net subscribers in Q2, compared to a net gain of 16,775 last year, due to reduced sales activity and fewer customers installing new TV services during COVID-19, increasing market maturity for Fibe TV and Alt TV, and ongoing over-the-top substitution. Bell served 1,766,430 retail IPTV subscribers at the end of Q2, up 3.1% over last year.

● Retail satellite TV net customer losses improved 17.2% to 11,940 from 14,425 last year due to fewer customer deactivations.

● At the end of Q2, Bell had a combined total of 2,738,365 retail IPTV and satellite TV subscribers, down 1.0% from Q2 2019.

● Retail residential NAS net losses improved 33.5% to 48,405, due to decreased customer deactivations during COVID-19 and fewer customers with expired promotional bundle offers. Bell’s retail residential NAS customer base totalled 2,587,483 at the end of Q2, an 8.3% decline from last year.

● Our wireline subscriber results are net of provisions estimating the number of customer deactivations that would have otherwise occurred in the quarter for delayed or non-payment.

Bell Media

● Total media operating revenue decreased 31.2% to $579 million due to lower year-over-year advertising and subscriber revenues.

● Advertising revenue declined materially on reduced advertiser spending across all platforms – TV, radio, out of home and digital, due to the impact of COVID-19 on commercial activity, the suspension of major league sports schedules and the cancellation of other live events.

● Subscriber revenue was down due to declines across multiple channels reflecting continued cord shaving and over-the-top substitution. Total subscribers have remained essentially stable during the COVID-19 period, with subscribers for Crave growing to approximately 2.8 million from almost 2.7 million last year.

● Adjusted EBITDA decreased 31.9% to $173 million due to the flow-through impact of lower revenue, partly offset by reduced operating costs.

COMMON SHARE DIVIDEND

BCE’s Board of Directors has declared a quarterly dividend of $0.8325 per common share, payable on October 15, 2020 to shareholders of record at the close of business on September 15, 2020.

FINANCIAL OUTLOOK

Due to uncertainties relating to the severity and duration of the COVID-19 pandemic, including possible resurgences in the number of COVID-19 cases, and various potential outcomes, we are not able at this time to estimate the impacts of the COVID-19 pandemic on our business or future financial results and related assumptions. Our business and financial results could continue to be significantly and negatively impacted in future periods. The extent to which

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COVID-19 will continue to adversely impact us will depend on future developments that are unknown and cannot be predicted, as well as new information which may emerge concerning the severity, duration and possible resurgences of the COVID-19 pandemic and the actions required to contain the coronavirus or remedy its impacts, among others. Given this unprecedented and highly uncertain environment, BCE withdrew on May 6, 2020 all of its 2020 financial guidance it announced on February 6, 2020.

BCE’s underlying business fundamentals remain strong. Our strong liquidity position, underpinned by a healthy balance sheet, substantial free cash flow generation and access to the debt and bank capital markets, is expected to provide significant financial flexibility to execute on our planned capital expenditures for 2020 and to sustain BCE’s common share dividend payments for the foreseeable future.

See BCE’s Q2 2020 MD&A for more information on the historical and future potential impacts of COVID-19 on our business, financial condition, liquidity and financial results, including, without limitation, the introduction to section 1, Overview, section 1.3, Assumptions, section 4.7, Liquidity and section 7, Business risks.

CALL WITH FINANCIAL ANALYSTS

BCE will hold a conference call for financial analysts to discuss Q2 2020 results on Thursday, August 6 at 8:00 am (Eastern). Media are welcome to participate on a listen-only basis. To participate, please dial toll-free 1-866-696-5894 or 416-641-6150 and enter passcode 7959145#. A replay will be available until midnight on September 4, 2020 by dialing 1-800-408-3053 or 905-694-9451 and entering passcode 4511636#.

A live audio webcast of the conference call will be available on BCE’s website at BCE Q2-2020 conference call. The mp3 file will be available for download on this page later in the day.

NOTES

The information contained in this news release is unaudited.

(1) In Q2 2020, we updated our definitions of adjusted net earnings, adjusted EPS and free cash flow to exclude the impacts of discontinued operations as they may affect the comparability of our financial results and could potentially distort the analysis of trends in business performance. As a result of this change, prior periods have been restated for comparative purposes.

(2) The terms adjusted net earnings and adjusted EPS do not have any standardized meaning under IFRS. Therefore, they are unlikely to be comparable to similar measures presented by other issuers. We define adjusted net earnings as net earnings attributable to common shareholders before severance, acquisition and other costs, net mark-to-market losses (gains) on derivatives used to economically hedge equity settled share-based compensation plans, net losses (gains) on investments, early debt redemption costs, impairment of assets and discontinued operations, net of tax and non-controlling interest (NCI). We define adjusted EPS as adjusted net earnings per BCE common share. We use adjusted net earnings and adjusted EPS, and we believe certain investors and analysts use these measures, among other ones, to assess the performance of our businesses without the effects of severance, acquisition and other costs, net mark-to-market losses (gains) on derivatives used to economically hedge equity settled share-based compensation plans, net losses (gains) on investments, early debt redemption costs, impairment of assets and discontinued operations, net of tax and NCI. We exclude these items because they affect the comparability of our financial results and could

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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. The following table is a reconciliation of net earnings attributable to common shareholders and EPS to adjusted net earnings on a consolidated basis and per BCE common share (adjusted EPS), respectively.

($ millions except per share amounts)
	Q2 2020				Q2 2019
	TOTAL		PER SHARE		TOTAL		PER SHARE
Net earnings attributable to common shareholders		237		0.26		761		0.85
Severance, acquisition and other costs		16		0.02		28		0.04
Net mark-to-market losses (gains) on derivatives used to economically hedge equity settled share-based compensation plans		7		-		(9)		(0.02)
Net (gains) losses on investments		(11)		(0.01)		53		0.06
Early debt redemption costs		-		-		13		0.01
Impairment of assets		328		0.36		1		-
Net earnings from discontinued operations		(4)		-		(7)		(0.01)
Adjusted net earnings		573		0.63		840		0.93

(3) The terms adjusted EBITDA and adjusted EBITDA margin do not have any standardized meaning under IFRS. Therefore, they are unlikely to be comparable to similar measures presented by other issuers. We define adjusted EBITDA as operating revenues less operating costs, as shown in BCE’s consolidated income statements. Adjusted EBITDA for BCE’s segments is the same as segment profit as reported in Note 4, Segmented information, in BCE’s Q2 2020 consolidated Financial Statements. We define adjusted EBITDA margin as adjusted EBITDA divided by operating revenues. We use adjusted EBITDA and adjusted EBITDA margin to evaluate the performance of our businesses as they reflect their ongoing profitability. We believe certain investors and analysts use adjusted EBITDA to measure a company’s ability to service debt and to meet other payment obligations or as a common measurement to value companies in the telecommunications industry. We believe that certain investors and analysts also use adjusted EBITDA and adjusted EBITDA margin to evaluate the performance of our businesses. Adjusted EBITDA is also one component in the determination of short-term incentive compensation for all management employees. Adjusted EBITDA and adjusted EBITDA margin have no directly comparable IFRS financial measure. Alternatively, the following table provides a reconciliation of net earnings to adjusted EBITDA.

8/12

($ millions)
	Q2 2020		Q2 2019
Net earnings		294		817
Severance, acquisition and other costs		22		39
Depreciation		869		879
Amortization		234		220
Finance costs
Interest expense		280		279
Interest on post-employment benefit obligations		11		15
Impairment of assets		449		1
Other expense (income)		80		54
Income taxes		96		275
Net earnings from discontinued operations		(4)		(7)
Adjusted EBITDA		2,331		2,572
BCE operating revenues		5,354		5,889
Adjusted EBITDA margin		43.5%		43.7%

(4) The term free cash flow does not have any standardized meaning under IFRS. Therefore, it is unlikely to be comparable to similar measures presented by other issuers. We define free cash flow as cash flows from operating activities, excluding cash from discontinued operations, acquisition and other costs paid (which include significant litigation costs) and voluntary pension funding, less capital expenditures, preferred share dividends and dividends paid by subsidiaries to NCI. We exclude cash from discontinued operations, acquisition and other costs paid and voluntary pension funding because they affect the comparability of our financial results and could potentially distort the analysis of trends in business performance. Excluding these items does not imply they are non-recurring. We consider free cash flow to be an important indicator of the financial strength and performance of our businesses because it shows how much cash is available to pay dividends on common shares, repay debt and reinvest in our company. We believe certain investors and analysts use free cash flow to value a business and its underlying assets and to evaluate the financial strength and performance of our businesses. The most comparable IFRS financial measure is cash flows from operating activities. The following table is a reconciliation of cash flows from operating activities to free cash flow on a consolidated basis.

($ millions)
	Q2 2020		Q2 2019
Cash flows from operating activities		2,562		2,093
Capital expenditures		(900)		(967)
Cash dividends paid on preferred shares		(33)		(37)
Cash dividends paid by subsidiaries to NCI		(12)		(12)
Acquisition and other costs paid		11		21
Cash from discontinued operations (included in cash flows from operating activities)		(17)		(22)
Free cash flow		1,611		1,076

9/12

(5) We use ABPU, churn, capital intensity and subscriber units to measure the success of our strategic imperatives. These key performance indicators are not accounting measures and may not be comparable to similar measures presented by other issuers.

CAUTION REGARDING FORWARD-LOOKING STATEMENTS

Certain statements made in this news release are forward-looking statements. These statements include, without limitation, statements relating to the potential impacts on our business, financial condition, liquidity and financial results of the COVID-19 pandemic, the expected continued payment by BCE of its common share dividend for the foreseeable future, our network deployment and capital investment plans, BCE’s financial flexibility to navigate the COVID-19 recovery and meet its anticipated 2020 cash requirements, the expected timing and completion of the proposed sale of 25 data centres at 13 sites to Equinix, BCE’s business outlook, objectives, plans and strategic priorities, and other statements that are not historical facts. Forward-looking statements are typically identified by the words assumption, goal, guidance, objective, outlook, project, strategy, target and other similar expressions or future or conditional verbs such as aim, anticipate, believe, could, expect, intend, may, plan, seek, should, strive and will. All such forward-looking statements are made pursuant to the ‘safe harbour’ provisions of applicable Canadian securities laws and of the United States Private Securities Litigation Reform Act of 1995.

Forward-looking statements, by their very nature, are subject to inherent risks and uncertainties and are based on several assumptions, both general and specific, which give rise to the possibility that actual results or events could differ materially from our expectations expressed in or implied by such forward-looking statements and that our business outlook, objectives, plans and strategic priorities may not be achieved. These statements are not guarantees of future performance or events, and we caution you against relying on any of these forward-looking statements. The forward-looking statements contained in this news release describe our expectations as of August 6, 2020 and, accordingly, are subject to change after such date. Except as may be required by applicable securities laws, we do not undertake any obligation to update or revise any forward-looking statements contained in this news release, whether as a result of new information, future events or otherwise. Except as otherwise indicated by BCE, forward-looking statements do not reflect the potential impact of any special items or of any dispositions, monetizations, mergers, acquisitions, other business combinations or other transactions that may be announced or that may occur after August 6, 2020. The financial impact of these transactions and special items can be complex and depends on the facts particular to each of them. We therefore cannot describe the expected impact in a meaningful way or in the same way we present known risks affecting our business. Forward-looking statements are presented in this news release for the purpose of assisting investors and others in understanding our objectives, strategic priorities and business outlook, and in obtaining a better understanding of our anticipated operating environment. Readers are cautioned that such information may not be appropriate for other purposes.

Material Assumptions

The forward-looking statements set out in this news release are based on certain assumptions including, without limitation, the following assumptions. Due to uncertainties relating to the severity and duration of the COVID-19 pandemic, including possible resurgences in the number of COVID-19 cases, and various potential outcomes, we are not able at this time to estimate the impacts of the COVID-19 pandemic on our business or future financial results and related assumptions. Accordingly, the assumptions outlined in this news release and, consequently, the forward-looking statements based on such assumptions, may turn out to be inaccurate.

10/12

● Our liquidity from our cash and cash equivalents balance, the remaining capacity under our committed credit facilities, our cash flows from operations, continued access to the public capital, bank credit and commercial paper markets based on investment-grade credit ratings, and continued access to our securitized trade receivables programs, will be sufficient to meet our cash requirements for the remainder of 2020

● No material financial, operational or competitive consequences of changes in regulations affecting any of our business segments

Material Risks

Important risk factors that could cause our assumptions and estimates to be inaccurate and actual results or events to differ materially from those expressed in, or implied by, our forward-looking statements include, without limitation: pandemics, epidemics and other public health risks including, in particular, the COVID-19 pandemic, and the uncertainty of its severity and duration, including possible resurgences in the number of cases and the potential re-introduction of emergency measures, and the adverse effects thereof; our inability to access adequate sources of capital and generate sufficient cash flows from operating activities to meet our cash requirements; our failure to maintain operational networks in the context of significant increases in capacity demands; the risk that we may need to make significant capital expenditures in order to provide additional capacity and reduce network congestion, and implement additional sanitation and safety procedures as a result of the COVID-19 pandemic; our inability to drive a positive customer experience; labour disruptions and shortages; our dependence on third-party suppliers, outsourcers and consultants to operate our business; uncertainty as to whether dividends will be declared by BCE’s board of directors or whether the dividend on common shares will be increased; pension obligation volatility and increased contributions to post-employment benefit plans; regulatory initiatives, proceedings and decisions, and government consultations, positions, actions and measures that affect us and influence our business; the intensity of competitive activity, including from new and emerging competitors, coupled with the launch of new products and services; the level of technological substitution and the presence of alternative service providers contributing to the acceleration of disruptions and disintermediation in each of our business segments; the adverse effect of changing viewer habits and the expansion of OTT TV on subscriber and viewer growth and on the advertising market; rising content costs, as an increasing number of domestic and global competitors seek to acquire the same content, and challenges in our ability to acquire or develop key content; the proliferation of content piracy impacting our ability to monetize products and services, as well as creating bandwidth pressure; higher Canadian smartphone penetration and increased device costs could challenge subscriber growth and cost of acquisition and retention; the inability to protect our physical and non-physical assets from events such as information security attacks, fire and natural disasters; the failure to transform our operations, enabling a truly customer-centric service experience, while lowering our cost structure; the failure to continue investment in next-generation capabilities; the complexity in our operations resulting from multiple technology platforms, billing systems, sales channels, marketing databases and a myriad of rate plans, promotions and product offerings; the failure to implement or maintain highly effective IT systems; the failure to generate anticipated benefits from our corporate restructurings, system replacements and upgrades, staff reductions, process redesigns and the integration of business acquisitions; our failure to test, maintain, replace or upgrade our networks, IT systems, equipment and other facilities; in-orbit and other operational risks to which the satellites used to provide our satellite TV services are subject; the failure to attract and retain employees with the appropriate skill sets and to drive their performance in a safe environment; changes to our base of suppliers or outsourcers that we may decide on or be required to implement; the failure of our vendor selection, governance and oversight processes;

11/12

security and data leakage exposure if security control protocols affecting our suppliers are bypassed; the quality of our products and services and the extent to which they may be subject to manufacturing defects or fail to comply with applicable government regulations and standards; the inability to manage various credit, liquidity and market risks; new or higher taxes due to new tax laws or changes thereto or in the interpretation thereof, and the inability to predict the outcome of government audits; the failure to reduce costs, as well as unexpected increases in costs; the failure to evolve practices to effectively monitor and control fraudulent activities; the unfavourable resolution of legal proceedings and, in particular, class actions; new or unfavourable changes in applicable laws and the failure to proactively address our legal and regulatory obligations; the failure to recognize and adequately respond to climate change concerns or public and governmental expectations on environmental matters; health concerns about radiofrequency emissions from wireless communication devices and equipment; and the expected timing and completion of the proposed sale by BCE of 25 data centres at 13 sites to Equinix are subject to closing conditions and other risks and uncertainties.

We caution that the foregoing list of risk factors is not exhaustive and other factors could also adversely affect our results. We encourage investors to also read BCE’s 2020 Second Quarter MD&A dated August 5, 2020 for additional information with respect to certain of these and other assumptions and risks, filed by BCE with the Canadian provincial securities regulatory authorities (available at Sedar.com) and with the U.S. Securities and Exchange Commission (available at SEC.gov). This document is also available at BCE.ca.

About BCE

BCE is Canada’s largest communications company, providing advanced Bell broadband wireless, TV, Internet and business communications services alongside Canada’s premier content creation and media assets from Bell Media. To learn more, please visit Bell.ca or BCE.ca.

The Bell Let’s Talk initiative promotes Canadian mental health with national awareness and anti-stigma campaigns like Bell Let’s Talk Day and significant Bell funding of community care and access, research and workplace leadership initiatives. To learn more, please visit Bell.ca/LetsTalk.

Media inquiries:

Marie-Eve Francoeur

514-391-5263

marie-eve.francoeur@bell.ca

Investor inquiries:

Thane Fotopoulos

514-870-4619

thane.fotopoulos@bell.ca

12/12

EX-99.5

Exhibit 99.5

NOTICE OF RELIANCE

SECTION 13.4 OF NATIONAL INSTRUMENT 51-102

CONTINUOUS DISCLOSURE OBLIGATIONS

To: Alberta Securities Commission

British Columbia Securities Commission

Manitoba Securities Commission

Financial and Consumer Services Commission, New Brunswick

Office of the Superintendent of Securities, Newfoundland and Labrador

Nova Scotia Securities Commission

Ontario Securities Commission

Office of the Superintendent of Securities, Prince Edward Island

Autorité des marchés financiers

Financial and Consumer Affairs Authority of Saskatchewan

Toronto Stock Exchange

Notice is hereby given that Bell Canada relies on the continuous disclosure documents filed by BCE Inc. pursuant to the exemption from the requirements of National Instrument 51-102 – Continuous Disclosure Obligations (“NI 51-102”) provided in Section 13.4 of NI 51-102.

The continuous disclosure documents of BCE Inc. can be found for viewing in electronic format at www.sedar.com.

Attached to this notice and forming part thereof is the consolidating summary financial information for BCE Inc. as required by Section 13.4 of NI 51-102.

Dated: August 6, 2020

BELL CANADA
By:	(signed) Thierry Chaumont
Name:	Thierry Chaumont
Title:	Senior Vice-President, Controller and Tax

  BELL CANADA

UNAUDITED SELECTED SUMMARY FINANCIAL INFORMATION ⁽¹⁾

For the periods ended June 30, 2020 and 2019

(in millions of Canadian dollars)

BCE Inc. fully and unconditionally guarantees the payment obligations of its 100% owned subsidiary Bell Canada under the public debt issued by Bell Canada. Accordingly, the following summary financial information is provided by Bell Canada in compliance with the requirements of section 13.4 of National Instrument 51-102 (Continuous Disclosure Obligations) providing for an exemption for certain credit support issuers. The tables below contain selected summary financial information for (i) BCE Inc. (as credit supporter), (ii) Bell Canada (as credit support issuer) on a consolidated basis, (iii) BCE Inc.’s subsidiaries, other than Bell Canada, on a combined basis, (iv) consolidating adjustments, and (v) BCE Inc. and all of its subsidiaries on a consolidated basis, in each case for the periods indicated. Such summary financial information for BCE Inc. and Bell Canada and all other subsidiaries is intended to provide investors with meaningful and comparable financial information about BCE Inc. and its subsidiaries. This summary financial information should be read in conjunction with BCE Inc.’s audited consolidated financial statements for the year ended December 31, 2019 and the unaudited consolidated interim financial report for the six months ended June 30, 2020. On June 1, 2020, BCE announced that it had entered into an agreement to sell substantially all of its data centre operations. As a result, we have reclassified amounts related to the announced sale for the previous periods to discontinued operations in the income statements to make them consistent with the presentation for the current period.

For the periods ended June 30:

	BCE INC. (“CREDIT SUPPORTER”)(2)								BELL CANADA CONSOLIDATED (“CREDIT SUPPORT ISSUER”)								SUBSIDIARIES OF BCE INC. OTHER THAN BELL CANADA(3)								CONSOLIDATING ADJUSTMENTS(4)												BCE INC. CONSOLIDATED
	2020		2019		2020		2019		2020		2019		2020		2019		2020		2019		2020		2019		2020			2019			2020			2019			2020		2019		2020		2019
		Three months		Three months		Six months		Six months		Three months		Three months		Six months		Six months		Three months		Three months		Six months		Six months		Three months			Three months			Six months			Six months			Three months		Three months		Six months		Six months
Operating revenues		—		—		—		—		5,355		5,890		10,995		11,579		—		—		—		—		(1	)		(1	)		(1	)		(1	)		5,354		5,889		10,994		11,578
Net earnings from continuing operations attributable to owners		267		792		980		1,561		476		857		1,172		1,621		37		34		71		68		(513	)		(891	)		(1,243	)		(1,689	)		267		792		980		1,561
Net earnings attributable to owners		271		799		989		1,577		480		864		1,181		1,637		37		34		71		68		(517	)		(898	)		(1,252	)		(1,705	)		271		799		989		1,577

As at June 30, 2020 and December 31, 2019, respectively:

	BCE INC. (“CREDIT SUPPORTER”)(2)				BELL CANADA CONSOLIDATED (“CREDIT SUPPORT ISSUER”)				SUBSIDIARIES OF BCE INC. OTHER THAN BELL CANADA(3)				CONSOLIDATING ADJUSTMENTS(4)						BCE INC. CONSOLIDATED
		Jun. 30,		Dec. 31,		Jun. 30,		Dec. 31,		Jun. 30,		Dec. 31,		Jun. 30,			Dec. 31,			Jun. 30,		Dec. 31,
	2020		2019		2020		2019		2020		2019		2020			2019			2020		2019
Total Current Assets		653		651		10,173		7,687		290		420		(3,654	)		(3,238	)		7,462		5,520
Total Non-current Assets		23,938		23,745		47,111		48,030		38		39		(17,358	)		(17,188	)		53,729		54,626
Total Current Liabilities		3,689		3,219		8,015		9,721		85		75		(3,654	)		(3,238	)		8,135		9,777
Total Non-current Liabilities		113		103		31,209		28,254		14		29		583			575			31,919		28,961

(1) The summary financial information is prepared in accordance with International Financial Reporting Standards (IFRS) and is in accordance with generally accepted accounting principles issued by the Canadian Accounting Standards Board for publicly-accountable enterprises.

(2) This column accounts for investments in all subsidiaries of BCE Inc. under the equity method.

(3) This column accounts for investments in all subsidiaries of BCE Inc. (other than Bell Canada) on a consolidated basis.

(4) This column includes the necessary amounts to eliminate the intercompany balances between BCE Inc., Bell Canada and other subsidiaries and other adjustments to arrive at the information for BCE Inc. on a consolidated basis.

EX-99.6

Exhibit 99.6

BCE Inc.

EXHIBIT TO 2020 SECOND QUARTER FINANCIAL STATEMENTS

EARNINGS COVERAGE

The following consolidated financial ratios are calculated for the twelve months ended June 30, 2020, give effect to the issuance and redemption of all long-term debt since July 1, 2019 as if these transactions occurred on July 1, 2019, and are based on unaudited financial information of BCE Inc.

	June 30, 2020
Earnings coverage of interest on debt requirements based on net earnings attributable to owners of BCE Inc. before interest expense and income tax:	3.8 times
Earnings coverage of interest on debt requirements based on net earnings attributable to owners of BCE Inc. before interest expense, income tax and non-controlling interest:	3.8 times

XML

Cover Page	6 Months Ended
	Jun. 30, 2020
Cover [Abstract]
Entity Registrant Name	BCE INC
Entity Central Index Key	0000718940
Current Fiscal Year End Date	--12-31
Document Period End Date	Jun. 30, 2020
Document Fiscal Year Focus	2020
Document Type	6-K
Document Fiscal Period Focus	Q2
Amendment Flag	false

XML

Consolidated income statements - CAD ($) shares in Millions, $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Profit or loss [abstract]
Operating revenues	$ 5,354	$ 5,889	$ 10,994	$ 11,578
Operating costs	(3,023)	(3,317)	(6,245)	(6,624)
Severance, acquisition and other costs	(22)	(39)	(38)	(63)
Depreciation	(869)	(879)	(1,727)	(1,752)
Amortization	(234)	(220)	(464)	(437)
Finance costs
Interest expense	(280)	(279)	(557)	(560)
Interest on post-employment benefit obligations	(11)	(15)	(23)	(31)
Impairment of assets	(449)	(1)	(456)	(5)
Other (expense) income	(80)	(54)	(127)	51
Income taxes	(96)	(275)	(339)	(565)
Net earnings from continuing operations	290	810	1,018	1,592
Net earnings from discontinued operations	4	7	9	16
Net earnings	294	817	1,027	1,608
Net earnings from continuing operations attributable to:
Common shareholders	233	754	908	1,485
Preferred shareholders	34	38	72	76
Non-controlling interest	23	18	38	31
Net earnings attributable to:
Common shareholders	237	761	917	1,501
Preferred shareholders	34	38	72	76
Non-controlling interest	$ 23	$ 18	$ 38	$ 31
Net earnings per common share - basic and diluted
Net earnings per common share continuing operations - basic and diluted (in CAD per share)	$ 0.26	$ 0.84	$ 1.00	$ 1.65
Net earnings per common share discontinued operations - basic and diluted (in CAD per share)	0	0.01	0.01	0.02
Net earnings per common share - basic and diluted (in CAD per share)	$ 0.26	$ 0.85	$ 1.01	$ 1.67
Average number of common shares outstanding - basic (millions) (in shares)	904.3	899.5	904.2	898.9

XML

Consolidated statements of comprehensive (loss) income - CAD ($) $ in Millions		3 Months Ended		6 Months Ended
		Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Statement of comprehensive income [abstract]
Net earnings from continuing operations		$ 290	$ 810	$ 1,018	$ 1,592
Items that will be subsequently reclassified to net earnings
Net change in value of publicly-traded and privately-held investments, net of income taxes of nil for the three and six months ended June 30, 2020 and 2019, respectively		(4)	0	(7)	0
Net change in value of derivatives designated as cash flow hedges, net of income taxes of $40 million and ($4) million for the three months ended June 30, 2020 and 2019, respectively and ($76) million and $16 million for the six months ended June 30, 2020 and 2019, respectively		(111)	10	207	(44)
Items that will not be reclassified to net earnings
Actuarial (losses) gains on post-employment benefit plans, net of income taxes of $594 million and $84 million for the three months ended June 30, 2020 and 2019, respectively, and ($40) million and $118 million for the six months ended June 30, 2020 and 2019, respectively (1)	[1]	(1,621)	(227)	110	(320)
Net change in value of derivatives designated as cash flow hedges, net of income taxes of $9 million and $4 million for the three months ended June 30, 2020 and 2019, respectively, and ($12) million and $8 million for the six months ended June 30, 2020 and 2019, respectively		(24)	(10)	33	(22)
Other comprehensive (loss) income from continuing operations		(1,760)	(227)	343	(386)
Net earnings from discontinued operations attributable to common shareholders		4	7	9	16
Total comprehensive income		(1,466)	590	1,370	1,222
Total comprehensive (loss) income attributable to:
Common shareholders		(1,520)	535	1,258	1,118
Preferred shareholders		34	38	72	76
Non-controlling interest		20	17	40	28
Total comprehensive income		$ (1,466)	$ 590	$ 1,370	$ 1,222
Actuarial assumption of discount rates		2.80%	3.00%	2.80%	3.00%

[1] The discount rate used to value our post-employment benefit obligations at June 30, 2020 was 2.8% compared to 4.2% at March 31, 2020 and 3.1% at    December 31, 2019. The discount rate used to value our post-employment benefit obligations at June 30, 2019 was 3.0% compared to 3.3% at March 31,  2019 and 3.8% at December 31, 2018.

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Consolidated statements of comprehensive (loss) income (Parenthetical) - CAD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Statement of comprehensive income [abstract]
Income tax relating to cash flow hedges	$ 40	$ (4)	$ (76)	$ 16
Income tax relating to actuarial (losses) gains of defined benefit plans	594	84	(40)	118
Income tax relating to changes in fair value of financial liability attributable to change in credit risk of liability included in other comprehensive income	$ 9	$ 4	$ (12)	$ 8

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Consolidated statements of financial position - CAD ($) $ in Millions	Jun. 30, 2020	Dec. 31, 2019
Current assets
Cash	$ 1,297	$ 141
Cash equivalents	250	4
Trade and other receivables	2,812	3,038
Inventory	445	427
Contract assets	921	1,111
Contract costs	399	415
Prepaid expenses	301	194
Other current assets	212	190
Assets held for sale	825	0
Total current assets	7,462	5,520
Non-current assets
Contract assets	328	533
Contract costs	341	368
Property, plant and equipment	26,840	27,636
Intangible assets	12,897	13,352
Deferred tax assets	123	98
Investments in associates and joint ventures	718	698
Other non-current assets	1,931	1,274
Goodwill	10,551	10,667
Total non-current assets	53,729	54,626
Total assets	61,191	60,146
Current liabilities
Trade payables and other liabilities	3,341	3,954
Contract liabilities	723	683
Interest payable	229	227
Dividends payable	766	729
Current tax liabilities	287	303
Debt due within one year	2,584	3,881
Liabilities held for sale	205	0
Total current liabilities	8,135	9,777
Non-current liabilities
Contract liabilities	216	207
Long-term debt	25,024	22,415
Deferred tax liabilities	3,765	3,561
Post-employment benefit obligations	1,980	1,907
Other non-current liabilities	934	871
Total non-current liabilities	31,919	28,961
Total liabilities	40,054	38,738
Equity attributable to BCE shareholders
Contributed surplus	1,155	1,178
Accumulated other comprehensive income	386	161
Deficit	(5,142)	(4,632)
Total equity attributable to BCE shareholders	20,789	21,074
Non-controlling interest	348	334
Total equity	21,137	21,408
Equity and liabilities	61,191	60,146
Preferred shares
Equity attributable to BCE shareholders
Shares	4,004	4,004
Common shares
Equity attributable to BCE shareholders
Shares	$ 20,386	$ 20,363

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Consolidated statements of changes in equity - CAD ($) $ in Millions	Total	TOTAL	SHARES PREFERRED SHARES	SHARES COMMON SHARES	CONTRI-BUTED SURPLUS	ACCUM-ULATED OTHER COMPRE-HENSIVE INCOME (LOSS)	DEFICIT	NON-CONTROL-LING INTEREST
Balance at beginning of period (As previously reported) at Dec. 31, 2018	$ 20,689	$ 20,363	$ 4,004	$ 20,036	$ 1,170	$ 90	$ (4,937)	$ 326
Net earnings	1,608	1,577					1,577	31
Other comprehensive income (loss)	(386)	(383)				(64)	(319)	(3)
Total comprehensive income	1,222	1,194				(64)	1,258	28
Common shares issued under employee stock option plan	64	64		67	(3)
Common shares issued under employee savings plan (ESP)	40	40		40
Other share-based compensation	3	3		1	(2)		4
Dividends declared on BCE common and preferred shares	(1,501)	(1,501)					(1,501)
Dividends declared by subsidiaries to non-controlling interest	(39)							(39)
Settlement of cash flow hedges transferred to the cost basis of hedged items	(12)	(12)				(12)
Other	15							15
Balance at end of period at Jun. 30, 2019	20,461	20,132	4,004	20,144	1,165	14	(5,195)	329
Balance at beginning of period (As previously reported) at Dec. 31, 2019	21,408	21,074	4,004	20,363	1,178	161	(4,632)	334
Balance at beginning of period at Dec. 31, 2019	21,408
Net earnings	1,027	989					989	38
Other comprehensive income (loss)	343	341				231	110	2
Total comprehensive income	1,370	1,330				231	1,099	40
Common shares issued under employee stock option plan	22	22		23	(1)
Other share-based compensation	(53)	(53)		0	(22)		(31)
Dividends declared on BCE common and preferred shares	(1,578)	(1,578)					(1,578)
Dividends declared by subsidiaries to non-controlling interest	(26)							(26)
Settlement of cash flow hedges transferred to the cost basis of hedged items	(6)	(6)				(6)
Balance at end of period at Jun. 30, 2020	$ 21,137	$ 20,789	$ 4,004	$ 20,386	$ 1,155	$ 386	$ (5,142)	$ 348

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Consolidated statements of cash flows - CAD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Cash flows from operating activities
Net earnings from continuing operations	$ 290	$ 810	$ 1,018	$ 1,592
Adjustments to reconcile net earnings from continuing operations to cash flows from operating activities
Severance, acquisition and other costs	22	39	38	63
Depreciation and amortization	1,103	1,099	2,191	2,189
Post-employment benefit plans cost	75	73	162	157
Net interest expense	275	271	545	547
Impairment of assets	449	1	456	5
Losses on investments	0	0	0	4
Income taxes	96	275	339	565
Contributions to post-employment benefit plans	(71)	(70)	(150)	(151)
Payments under other post-employment benefit plans	(12)	(19)	(29)	(37)
Severance and other costs paid	(13)	(33)	(48)	(99)
Interest paid	(240)	(269)	(556)	(534)
Income taxes paid (net of refunds)	6	(127)	(227)	(416)
Acquisition and other costs paid	(11)	(21)	(20)	(50)
Net change in operating assets and liabilities	576	42	255	(273)
Cash from discontinued operations	17	22	39	47
Cash flows from operating activities	2,562	2,093	4,013	3,609
Cash flows used in investing activities
Capital expenditures	(900)	(967)	(1,677)	(1,815)
Business acquisitions	(23)	(50)	(23)	(50)
Other investing activities	(13)	32	(19)	8
Cash used in discontinued operations	(8)	(5)	(15)	(7)
Cash flows used in investing activities	(944)	(990)	(1,734)	(1,864)
Cash flows used in financing activities
(Decrease) increase in notes payable	(1,204)	277	(1,434)	844
(Decrease) increase in securitized trade receivables	(400)	0	0	31
Issue of long-term debt	1,975	1,405	5,256	1,405
Repayment of long-term debt	(2,221)	(1,597)	(2,930)	(1,800)
Issue of common shares	0	44	22	64
Purchase of shares for settlement of share-based payments	(75)	(10)	(169)	(86)
Cash dividends paid on common shares	(753)	(712)	(1,469)	(1,390)
Cash dividends paid on preferred shares	(33)	(37)	(69)	(63)
Cash dividends paid by subsidiaries to non-controlling interest	(12)	(12)	(26)	(39)
Other financing activities	(25)	(33)	(55)	(39)
Cash used in discontinued operations	(2)	(2)	(3)	(3)
Cash flows used in financing activities	(2,750)	(677)	(877)	(1,076)
Net increase in cash	354	173	1,156	294
Cash at beginning of period	943	546	141	425
Cash at end of period	1,297	719	1,297	719
Net (decrease) increase in cash equivalents	(1,486)	253	246	375
Cash equivalents at beginning of period	1,736	122	4	0
Cash equivalents at end of period	$ 250	$ 375	$ 250	$ 375

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Corporate information

6 Months Ended

Jun. 30, 2020

Corporate Information And Statement Of IFRS Compliance [Abstract]

Corporate information

Note 1 Corporate Information

BCE is incorporated and domiciled in Canada. BCE’s head office is located at 1, Carrefour Alexander-Graham-Bell, Verdun, Québec, Canada. BCE is a telecommunications and media company providing wireless, wireline, Internet and television (TV) services to residential, business and wholesale customers in Canada. Our Bell Media segment provides conventional TV, specialty TV, pay TV, streaming services, digital media services, radio broadcasting services and out-of-home advertising services to customers in Canada.

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Basis of presentation and significant accounting policies

6 Months Ended

Jun. 30, 2020

Accounting Policies, Changes In Accounting Estimates And Errors [Abstract]

Basis of presentation and significant accounting policies

Note 2 Basis of presentation and significant accounting policies

These financial statements were prepared in accordance with International Financial Reporting Standards (IFRS), as issued by the International Accounting Standards Board (IASB), under International Accounting Standard (IAS) 34 - Interim Financial Reporting and were approved by BCE’s board of directors on August 5, 2020. These financial statements were prepared using the same basis of presentation, accounting policies and methods of computation as outlined in Note 2, Significant accounting policies in our consolidated financial statements for the year ended December 31, 2019, except as noted below and as described in Note 3, Discontinued Operations.

These financial statements do not include all of the notes required in annual financial statements.

All amounts are in millions of Canadian dollars, except where noted.

Estimates and key judgments

When preparing the financial statements, management makes estimates and judgments relating to reported amounts of revenues and expenses, reported amounts of assets and liabilities and disclosure of contingent assets and liabilities. We base our estimates on a number of factors, including historical experience, current events including but not limited to the COVID-19 pandemic and actions that the company may undertake in the future, and other assumptions that we believe are reasonable under the circumstances. By their nature, these estimates and judgments are subject to measurement uncertainty and actual results could differ.

Adoption of amended accounting standards

As required, effective January 1, 2020, we adopted the following amended accounting standards.

STANDARD	DESCRIPTION	IMPACT
IFRIC Agenda Decision on IFRS 16 - Leases	International Financial Reporting Interpretations Committee (IFRIC) agenda decision clarifying the determination of the lease term for cancellable or renewable leases under IFRS 16.	This agenda decision did not have a significant impact on our financial statements.
Definition of a Business, Amendments to IFRS 3 - Business Combinations	These amendments to the implementation guidance of IFRS 3 clarify the definition of a business to assist entities to determine whether a transaction should be accounted for as a business combination or an asset acquisition.	These amendments did not have any impact on our financial statements. They may affect whether future acquisitions are accounted for as business combinations or asset acquisitions, along with the resulting allocation of the purchase price between the net identifiable assets acquired and goodwill.

Future changes to accounting standards

The following amendments to standards issued by the IASB have not yet been adopted by BCE.

STANDARD	DESCRIPTION	IMPACT	EFFECTIVE DATE
COVID-19-Related Rent Concessions, Amendment to IFRS 16 – Leases	This amendment provides an optional relief to lessees from applying IFRS 16’s guidance on lease modification accounting for rent concessions arising as a direct consequence of the COVID-19 pandemic.	We are currently assessing the impact of this amendment, if we adopt the optional relief.	Effective for annual reporting periods beginning on or after June 1, 2020. Early application is permitted.
Onerous Contracts – Cost of Fulfilling a Contract, Amendments to IAS 37 – Provisions	These amendments clarify which costs should be included in determining the cost of fulfilling a contract when assessing whether a contract is onerous.	We are currently assessing the impact of these amendments.	Effective for annual reporting periods beginning on or after January 1, 2022. Early application is permitted.

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Discontinued operations

6 Months Ended

Jun. 30, 2020

Disclosure of analysis of single amount of discontinued operations [abstract]

Discontinued operations

Note 3 Discontinued operations

On June 1, 2020, BCE announced that it had entered into an agreement to sell substantially all of its data centre operations in an all-cash transaction valued at $1.04 billion. The transaction is expected to close in the second half of 2020, subject to customary closing conditions. As a result, we have reclassified amounts related to the announced sale for the previous periods to discontinued operations in our consolidated income statements and consolidated statements of cash flows to make them consistent with the presentation for the current period. We have also reclassified the assets and liabilities of the data centre operations to be sold as held for sale in our consolidated statements of financial position at June 30, 2020, measured at their carrying amount, which is lower than the estimated fair value less costs to sell. Property, plant and equipment and intangible assets included in assets held for sale are no longer depreciated or amortized effective June 1, 2020.

The following table summarizes the carrying value of the assets and liabilities that are classified as held for sale at June 30, 2020.

	June 30, 2020
Contract assets	1
Contract costs	3
Property, plant and equipment	479
Intangible assets	227
Goodwill	115
Total assets held for sale	825
Long-term debt	115
Deferred tax liabilities	82
Other non-current liabilities	8
Total liabilities held for sale	205
Net assets held for sale	620

The following tables summarize the income statements and statements of cash flows of our discontinued operations for the three and six months ended June 30, 2020 and 2019.

	THREE MONTHS		SIX MONTHS
FOR THE PERIOD ENDED JUNE 30	2020	2019	2020	2019
Operating revenues	39	41	79	86
Operating costs	(19)	(18)	(35)	(36)
Depreciation	(8)	(9)	(18)	(18)
Amortization	(3)	(3)	(7)	(7)
Interest expense	(2)	(2)	(4)	(4)
Other income	(1)	(1)	(2)	(1)
Income taxes	(2)	(1)	(4)	(4)
Net earnings attributable to common shareholders	4	7	9	16

	THREE MONTHS		SIX MONTHS
FOR THE PERIOD ENDED JUNE 30	2020	2019	2020	2019
Cash flows from operating activities	17	22	39	47
Cash flows used in investing activities	(8)	(5)	(15)	(7)
Cash flows used in financing activities	(2)	(2)	(3)	(3)
Net increase in cash	7	15	21	37

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Segmented information

6 Months Ended

Jun. 30, 2020

Operating Segments [Abstract]

Segmented information

Note 4 Segmented information

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

To align with changes in how we manage our business and assess performance, the operating results of our public safety land radio network business are now included within our Bell Wireline segment effective January 1, 2020, with prior periods restated for comparative purposes. Previously, these results were included within our Bell Wireless segment. Our public safety land radio network business, which builds and manages land mobile radio networks primarily for the government sector, is now managed by our Bell Business Markets team in order to better serve our customers with end-to-end communications solutions.

As a result of our agreement to sell substantially all of our data centre operations, the financial results of these data centre operations, which were previously included in our Bell Wireline segment, are now presented as a discontinued operation. See Note 3, Discontinued operations, for additional details.

The following tables present financial information by segment for the three month periods ended June 30, 2020 and 2019.

FOR THE THREE MONTH PERIOD ENDED JUNE 30, 2020	NOTE	BELL WIRELESS	BELL WIRELINE	BELL MEDIA	INTER- SEGMENT ELIMINA- TIONS	BCE
Operating revenues
External customers		1,909	2,963	482	—	5,354
Inter-segment		13	80	97	(190)	—
Total operating revenues		1,922	3,043	579	(190)	5,354
Operating costs	5	(1,043)	(1,764)	(406)	190	(3,023)
Segment profit (1)		879	1,279	173	—	2,331
Severance, acquisition and other costs	6					(22)
Depreciation and amortization						(1,103)
Finance costs
Interest expense						(280)
Interest on post-employment benefit obligations	13					(11)
Impairment of assets	7					(449)
Other expense	8					(80)
Income taxes						(96)
Net earnings from continuing operations						290
Net earnings from discontinued operations						4
Net earnings						294

(1) The chief operating decision maker uses primarily one measure of profit to make decisions and assess performance, being operating revenues less

operating costs.

FOR THE THREE MONTH PERIOD ENDED JUNE 30, 2019		NOTE	BELL WIRELESS	BELL WIRELINE	BELL MEDIA	INTER- SEGMENT ELIMINA- TIONS	BCE
Operating revenues
	External customers		2,146	3,006	737	—	5,889
	Inter-segment		14	67	105	(186)	—
Total operating revenues			2,160	3,073	842	(186)	5,889
Operating costs		5	(1,192)	(1,723)	(588)	186	(3,317)
Segment profit (1)			968	1,350	254	—	2,572
Severance, acquisition and other costs		6					(39)
Depreciation and amortization							(1,099)
Finance costs
	Interest expense						(279)
	Interest on post-employment benefit obligations	13					(15)
Impairment of assets		7					(1)
Other expense		8					(54)
Income taxes							(275)
Net earnings from continuing operations							810
Net earnings from discontinued operations							7
Net earnings							817

(1) The chief operating decision maker uses primarily one measure of profit to make decisions and assess performance, being operating revenues less operating costs.

The following tables present financial information by segment for the six month periods ended June 30, 2020 and 2019.

FOR THE SIX MONTH PERIOD ENDED JUNE 30, 2020	NOTE	BELL WIRELESS	BELL WIRELINE	BELL MEDIA	INTER- SEGMENT ELIMINA- TIONS	BCE
Operating revenues
External customers		3,931	5,923	1,140	—	10,994
Inter-segment		26	156	191	(373)	—
Total operating revenues		3,957	6,079	1,331	(373)	10,994
Operating costs	5	(2,150)	(3,465)	(1,003)	373	(6,245)
Segment profit (1)		1,807	2,614	328	—	4,749
Severance, acquisition and other costs	6					(38)
Depreciation and amortization						(2,191)
Finance costs
Interest expense						(557)
Interest on post-employment benefit obligations	13					(23)
Impairment of assets	7					(456)
Other expense	8					(127)
Income taxes						(339)
Net earnings from continuing operations						1,018
Net earnings from discontinued operations						9
Net earnings						1,027

(1) The chief operating decision maker uses primarily one measure of profit to make decisions and assess performance, being operating revenues less operating costs.

FOR THE SIX MONTH PERIOD ENDED JUNE 30, 2019		NOTE	BELL WIRELESS	BELL WIRELINE	BELL MEDIA	INTER- SEGMENT ELIMINA- TIONS	BCE
Operating revenues
	External customers		4,210	5,991	1,377	—	11,578
	Inter-segment		27	134	210	(371)	—
Total operating revenues			4,237	6,125	1,587	(371)	11,578
Operating costs		5	(2,377)	(3,450)	(1,168)	371	(6,624)
Segment profit (1)			1,860	2,675	419	—	4,954
Severance, acquisition and other costs		6					(63)
Depreciation and amortization							(2,189)
Finance costs
	Interest expense						(560)
	Interest on post-employment benefit obligations	13					(31)
Impairment of assets		7					(5)
Other income		8					51
Income taxes							(565)
Net earnings from continuing operations							1,592
Net earnings from discontinued operations							16
Net earnings							1,608

(1) The chief operating decision maker uses primarily one measure of profit to make decisions and assess performance, being operating revenues less operating costs.

Revenues by services and products

	THREE MONTHS		SIX MONTHS
FOR THE PERIOD ENDED JUNE 30	2020	2019	2020	2019
Services(1)
Wireless	1,481	1,580	3,016	3,108
Wireline data	1,916	1,914	3,807	3,780
Wireline voice	863	897	1,735	1,804
Media	482	737	1,140	1,377
Other wireline services	58	62	120	121
Total services	4,800	5,190	9,818	10,190
Products(2)
Wireless	428	566	915	1,102
Wireline data	113	123	236	265
Wireline equipment and other	13	10	25	21
Total products	554	699	1,176	1,388
Total operating revenues	5,354	5,889	10,994	11,578

(1) Our service revenues are generally recognized over time.

(2) Our product revenues are generally recognized at a point in time.

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Operating costs

6 Months Ended

Jun. 30, 2020

Analysis of income and expense [abstract]

Operating costs

Note 5 Operating costs

			THREE MONTHS		SIX MONTHS
FOR THE PERIOD ENDED JUNE 30		NOTE	2020	2019	2020	2019
Labour costs
	Wages, salaries and related taxes and benefits		(994)	(1,085)	(2,035)	(2,139)
	Post-employment benefit plans service cost (net of capitalized amounts)	13	(64)	(58)	(139)	(126)
	Other labour costs (1)		(236)	(257)	(463)	(486)
Less:
	Capitalized labour		248	270	494	513
Total labour costs			(1,046)	(1,130)	(2,143)	(2,238)
Cost of revenues (2)			(1,471)	(1,706)	(3,125)	(3,444)
Other operating costs (3)			(506)	(481)	(977)	(942)
Total operating costs			(3,023)	(3,317)	(6,245)	(6,624)

(1)Other labour costs include contractor and outsourcing costs.

(2)Cost of revenues includes costs of wireless devices and other equipment sold, network and content costs, and payments to other carriers.

(3)Other operating costs include marketing, advertising and sales commission costs, bad debt expense, taxes other than income taxes, information technology costs, professional service fees and rent.

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Severance, acquisition and other costs

6 Months Ended

Jun. 30, 2020

Analysis of income and expense [abstract]

Severance, acquisition and other costs

Note 6 Severance, acquisition and other costs

	THREE MONTHS		SIX MONTHS
FOR THE PERIOD ENDED JUNE 30	2020	2019	2020	2019
Severance	(2)	(20)	(10)	(27)
Acquisition and other	(20)	(19)	(28)	(36)
Total severance, acquisition and other costs	(22)	(39)	(38)	(63)

Severance costs

Severance costs consist of charges related to involuntary and voluntary employee terminations.

Acquisition and other costs

Acquisition and other costs consist of transaction costs, such as legal and financial advisory fees, related to completed or potential acquisitions, employee severance costs related to the purchase of a business, the costs to integrate acquired companies into our operations, litigation costs, when they are significant, and other costs.

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Impairment of assets

6 Months Ended

Jun. 30, 2020

Disclosure of detailed information about intangible assets [abstract]

Impairment of assets

Note 7 Impairment of assets

During the second quarter of 2020, we identified indicators of impairment for certain of our Bell Media TV services and radio markets, notably declines in advertising revenues, lower subscriber revenues and overall increases in discount rates resulting from the economic impact of the COVID-19 pandemic. Accordingly, impairment testing was required for certain groups of cash-generating units (CGUs) as well as for goodwill.

Impairment charges for the three and six months ended June 30, 2020 of $449 million and $456 million, respectively, related primarily to $452 million of charges for our English and French TV services as well as various radio markets within our Bell Media segment. These charges included $291 million allocated to indefinite-life intangible assets for broadcast licenses, $146 million allocated to finite-life intangible assets, mainly for program and feature film rights, and $15 million to property, plant and equipment for network and infrastructure and equipment. They were determined by comparing the carrying value of the CGUs to their fair value less cost of disposal. We estimated the fair value of the CGUs using both discounted cash flows and market-based valuation models, which include five-year cash flow projections derived from business plans reviewed by senior management for the period of July 1, 2020 to December 31, 2025, using discount rates of 8.0% to 9.5% and a perpetuity growth rate of (1.0)% to nil as well as market multiple data from public companies and market transactions. The carrying value of these CGUs was $942 million at June 30, 2020.

There was no impairment of Bell Media goodwill. For the Bell Media group of CGUs, a decrease of (0.6)% in the perpetuity growth rate or an increase of 0.4% in the discount rate would have resulted in its recoverable amount being equal to its carrying value.

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Other (expense) income

6 Months Ended

Jun. 30, 2020

Analysis of income and expense [abstract]

Other (expense) income

Note 8 Other (expense) income

			THREE MONTHS		SIX MONTHS
FOR THE PERIOD ENDED JUNE 30		NOTE	2020	2019	2020	2019
Losses on retirements and disposals of property, plant and equipment and intangible assets			(54)	(1)	(70)	(6)
Net mark-to-market (losses) gains on derivatives used to economically hedge equity settled share-based compensation plans			(9)	12	(37)	112
Early debt redemption costs		12	—	(18)	(17)	(18)
Equity gains (losses) from investments in associates and joint ventures
	Gain (loss) on investment		11	(53)	21	(53)
	Operations		(24)	(6)	(15)	5
Losses on investments			—	—	—	(4)
Other			(4)	12	(9)	15
Total other (expense) income			(80)	(54)	(127)	51

Losses on retirements and disposals of property, plant and equipment and intangible assets

In Q2 2020, we recorded a loss of $45 million due to a change in strategic direction related to the ongoing development of some of our TV platform assets under construction.

Equity gain (loss) from investments in associates and joint ventures

We recorded a gain on investment of $11 million and $21 million for the three and six months ended June 30, 2020, respectively, and a loss on investment of ($53) million for the three and six months ended June 30, 2019, related to equity gains (losses) on our share of an obligation to repurchase at fair value the minority interest in one of BCE's joint ventures. The obligation is marked to market each reporting period and the gain or loss on investment is recorded as equity gains or losses from investments in associates and joint ventures.

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Earnings per share

6 Months Ended

Jun. 30, 2020

Earnings per share [abstract]

Earnings per share

Note 9 Earnings per share

The following table shows the components used in the calculation of basic and diluted net earnings per common share for earnings attributable to common shareholders.

		THREE MONTHS		SIX MONTHS
FOR THE PERIOD ENDED JUNE 30		2020	2019	2020	2019
Net earnings from continuing operations attributable to common shareholders - basic		233	754	908	1,485
Net earnings from discontinued operations attributable to common shareholders - basic		4	7	9	16
Net earnings attributable to common shareholders - basic		237	761	917	1,501
Dividends declared per common share (in dollars)		0.8325	0.7925	1.6650	1.5850
Weighted average number of common shares outstanding (in millions)
	Weighted average number of common shares outstanding - basic	904.3	899.5	904.2	898.9
	Assumed exercise of stock options (1)	0.1	0.8	0.2	0.5
Weighted average number of common shares outstanding - diluted (in millions)		904.4	900.3	904.4	899.4

(1)The calculation of the assumed exercise of stock options includes the effect of the average unrecognized future compensation cost of dilutive options. It excludes options for which the exercise price is higher than the average market value of a BCE common share. The number of excluded options was 14,358,128 for the second quarter of 2020 and 9,554,587 for the first half of 2020, compared to 3,379,952 for the second quarter of 2019 and 6,349,240 for the first half of 2019.

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Trade and other receivables

6 Months Ended

Jun. 30, 2020

Subclassifications of assets, liabilities and equities [abstract]

Trade and other receivables

Note 10 Trade and other receivables

	NOTE	June 30, 2020	December 31, 2019
Trade receivables		2,789	2,981
Allowance for revenue adjustments		(133)	(104)
Allowance for doubtful accounts	14	(104)	(62)
Current tax receivable		32	23
Other accounts receivable		228	200
Total trade and other receivables		2,812	3,038

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Other non-current assets

6 Months Ended

Jun. 30, 2020

Subclassifications of assets, liabilities and equities [abstract]

Other non-current assets

Note 11 Other non-current assets

	NOTE	June 30, 2020	December 31, 2019
Net assets of post-employment benefit plans	13	765	558
Derivative assets	14	539	200
Long-term receivables		235	142
Investments(1)	14	147	128
Publicly-traded and privately-held investments	14	122	129
Other		123	117
Total other non-current assets		1,931	1,274

(1)These amounts have been pledged as security related to obligations for certain employee benefits and are not available for general use.

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Debt

6 Months Ended

Jun. 30, 2020

Financial Instruments [Abstract]

Debt

Note 12 Debt

On May 14, 2020, Bell Canada issued 2.50% Series M-52 medium term note (MTN) debentures under its 1997 trust indenture, with a principal amount of $1 billion, which mature on May 14, 2030.

On May 14, 2020 and February 13, 2020, Bell Canada issued 3.50% Series M-51 MTN debentures under its 1997 trust indenture, with a principal amount of $500 million and $750 million, respectively, which mature on September 30, 2050.

During the first half of 2020, Bell Canada drew $1,450 million in U.S. dollars ($2,035 million in Canadian dollars) under its $4 billion Canadian dollar committed credit facilities. In Q2 2020, Bell Canada repaid all of the U.S dollar borrowings under such facilities. The borrowings, which were included in long-term debt, were hedged for foreign currency fluctuations through foreign exchange forward contracts. Accordingly, in Q2 2020, the forward contracts used to hedge these borrowings were settled. See Note 14, Financial assets and liabilities, for additional details.

On March 25, 2020, Bell Canada issued 3.35% Series M-47 MTN debentures under its 1997 trust indenture, with a principal amount of $1 billion, which mature on March 12, 2025.

On March 16, 2020, Bell Canada redeemed, prior to maturity, its 4.95% Series M-24 MTN debentures, having an outstanding principal amount of $500 million, which were due on May 19, 2021. We incurred early debt redemption charges of $17 million, which were recorded in Other (expense) income in the income statement.

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Post-employee benefit plans

6 Months Ended

Jun. 30, 2020

Employee Benefits [Abstract]

Post-employment benefit plans

Note 13 Post-employment benefit plans

Post-employment benefit plans cost

We provide pension and other benefits for most of our employees. These include defined benefit (DB) pension plans, defined contribution (DC) pension plans and other post-employment benefits (OPEBs).

COMPONENTS OF POST-EMPLOYMENT BENEFIT PLANS SERVICE COST

		THREE MONTHS		SIX MONTHS
FOR THE PERIOD ENDED JUNE 30		2020	2019	2020	2019
DB pension		(55)	(48)	(109)	(96)
DC pension		(26)	(25)	(62)	(58)
OPEBs		—	—	(1)	(1)
Less:
	Capitalized benefit plans cost	17	15	33	29
Total post-employment benefit plans service cost		(64)	(58)	(139)	(126)

COMPONENTS OF POST-EMPLOYMENT BENEFIT PLANS FINANCING COST

	THREE MONTHS		SIX MONTHS
FOR THE PERIOD ENDED JUNE 30	2020	2019	2020	2019
DB pension	(2)	(5)	(5)	(10)
OPEBs	(9)	(10)	(18)	(21)
Total interest on post-employment benefit obligations	(11)	(15)	(23)	(31)

FUNDED STATUS OF POST-EMPLOYMENT BENEFIT PLANS COST

The following table shows the funded status of our post-employment benefit obligations.

	FUNDED		PARTIALLY FUNDED(1)		UNFUNDED(2)		TOTAL
FOR THE PERIOD ENDED	JUNE 30, 2020	DECEMBER 31, 2019	JUNE 30, 2020	DECEMBER 31, 2019	JUNE 30, 2020	DECEMBER 31, 2019	JUNE 30, 2020	DECEMBER 31, 2019
Present value of post-employment benefit obligations	(25,790)	(24,961)	(1,964)	(1,918)	(308)	(300)	(28,062)	(27,179)
Fair value of plan assets	26,493	25,474	374	376	—	—	26,867	25,850
Plan surplus (deficit)	703	513	(1,590)	(1,542)	(308)	(300)	(1,195)	(1,329)

(1)The partially funded plans consist of supplementary executive retirement plans (SERPs) for eligible employees and certain OPEBs. The company partially funds the SERPs through letters of credit and a retirement compensation arrangement account with the Canada Revenue Agency. Certain paid-up life insurance benefits are funded through life insurance contracts.

(2)Our unfunded plans consist of certain OPEBs, which are paid as claims are incurred.

In Q2 2020, we recorded a decrease in our post-employment benefit plans and a loss, before taxes, in Other comprehensive (loss) income from continuing operations of ($2,215) million due to an increase in the present value of our post-employment benefit obligations of ($4,673) million as a result of a decrease in the discount rate to 2.8% at June 30, 2020, compared to 4.2% at March 31, 2020, partly offset by an increase in the fair value of plan assets of $2,458 million as a result of an actual gain on plan assets of 10.7%.

During the first half of 2020, we recorded an increase in our post-employment benefit plans and a gain, before taxes, in Other comprehensive (loss) income from continuing operations of $150 million due to an increase in the fair value of plan assets of $1,207 million as a result of an actual gain on plan assets of 6.5%, partly offset by an increase in the present value of our post-employment benefit obligations of ($1,057) million as a result of a decrease in the discount rate to 2.8% at June 30, 2020, compared to 3.1% at December 31, 2019

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Financial assets and liabilities

6 Months Ended

Jun. 30, 2020

Financial Instruments [Abstract]

Financial assets and liabilities

Note 14 Financial assets and liabilities

FAIR VALUE

The following table provides the fair value details of financial instruments measured at amortized cost in the consolidated statements of financial position.

			JUNE 30, 2020		DECEMBER 31, 2019
	CLASSIFICATION	FAIR VALUE METHODOLOGY	CARRYING VALUE	FAIR VALUE	CARRYING VALUE	FAIR VALUE
CRTC tangible benefits obligation	Trade payables and other liabilities and other non-current liabilities	Present value of estimated future cash flows discounted using observable market interest rates	12	12	29	29
CRTC deferral account obligation	Trade payables and other liabilities and other non-current liabilities	Present value of estimated future cash flows discounted using observable market interest rates	82	86	82	85
Debt securities and other debt	Debt due within one year and long-term debt	Quoted market price of debt	21,517	25,068	18,653	20,905

The following table provides the fair value details of financial instruments measured at fair value in the consolidated statements of financial position.

			FAIR VALUE
	CLASSIFICATION	CARRYING VALUE OF ASSET (LIABILITY)	QUOTED PRICES IN ACTIVE MARKETS FOR IDENTICAL ASSETS (LEVEL 1)	OBSERVABLE MARKET DATA (LEVEL 2)(1)	NON-OBSERVABLE MARKET INPUTS (LEVEL 3)(2)
June 30, 2020
Publicly-traded and privately-held investments	Other non-current assets	122	2	—	120
Derivative financial instruments	Other current assets, trade payables and other liabilities, other non-current assets and liabilities	522	—	522	—
Maple Leaf Sports & Entertainment Ltd. (MLSE) financial liability(3)	Trade payables and other liabilities	(138)	—	—	(138)
Other	Other non-current assets and liabilities	91	2	147	(58)
December 31, 2019
Publicly-traded and privately-held investments	Other non-current assets	129	2	—	127
Derivative financial instruments	Other current assets, trade payables and other liabilities, other non-current assets and liabilities	165	—	165	—
MLSE financial liability(3)	Trade payables and other liabilities	(135)	—	—	(135)
Other	Other non-current assets and liabilities	71	1	128	(58)

(1)Observable market data such as equity prices, interest rates, swap rate curves and foreign currency exchange rates.

(2)Non-observable market inputs such as discounted cash flows and earnings multiples. A reasonable change in our assumptions would not result in a significant increase (decrease) to our level 3 financial instruments.

(3)Represents BCE’s obligation to repurchase the BCE Master Trust Fund's (Master Trust Fund) 9% interest in MLSE at a price not less than an agreed minimum price should the Master Trust Fund exercise its put option. The obligation to repurchase is marked to market each reporting period and the gain or loss is recognized in Other (expense) income in the consolidated income statements. The option has been exercisable since 2017.

CREDIT RISK

We are exposed to credit risk from operating activities and certain financing activities, the maximum exposure of which is represented by the carrying amounts reported in the statements of financial position.

We are exposed to credit risk if counterparties to our trade receivables and derivative instruments are unable to meet their obligations. The concentration of credit risk from our customers is minimized because we have a large and diverse customer base. There was minimal credit risk relating to derivative instruments at June 30, 2020 and December 31, 2019. We deal with institutions that have investment-grade credit ratings, and as such we expect that they will be able to meet their obligations. We regularly monitor our credit risk and credit exposure.

The following table provides the change in allowance for doubtful accounts for trade receivables, which reflects an increase for the period ended June 30, 2020, mainly as a result of the impact of the COVID-19 pandemic.

	NOTE
Balance, January 1, 2020		(62)
Additions		(90)
Usage		48
Balance, June 30, 2020	10	(104)

In many instances, trade receivables are written off directly to bad debt expense if the account has not been collected after a predetermined period of time. 

The following table provides further details on trade receivables, net of allowance for doubtful accounts.

	June 30, 2020	December 31, 2019
Trade receivables not past due	1,926	2,082
Trade receivables past due
Under 60 days	395	541
60 to 120 days	252	232
Over 120 days	112	64
Trade receivables, net of allowance for doubtful accounts	2,685	2,919

MARKET RISK

CURRENCY EXPOSURES

We use forward contracts, options and cross currency basis swaps to manage foreign currency risk related to anticipated purchases and sales and certain foreign currency debt.

During the first half of 2020, we entered into foreign exchange forward contracts with a notional amount of $1,453 million in U.S. dollars ($2,039 million in Canadian dollars) to hedge the foreign currency risk associated with amounts drawn under our $4 billion Canadian dollar committed credit facilities. These foreign exchange contracts have matured at June 30, 2020. A loss of $30 million and $14 million, for the three and six months ended June 30, 2020, respectively, relating to these foreign exchange forward contracts is recognized in Other (expense) income in the consolidated income statements, which offsets the foreign currency gain on the repayment of drawdowns under the credit facilities.

A 10% depreciation (appreciation) in the value of the Canadian dollar relative to the U.S. dollar would result in a gain (loss) of $1 million ($55 million) recognized in net earnings from continuing operations at June 30, 2020 and a gain (loss) of $228 million recognized in Other comprehensive (loss) income from continuing operations at June 30, 2020, with all other variables held constant.

A 10% depreciation (appreciation) in the value of the Canadian dollar relative to the Philippines Peso would result in a gain (loss) of $2 million in Other comprehensive (loss) income from continuing operations at June 30, 2020, with all other variables held constant.

The following table provides further details on our outstanding foreign currency forward contracts and options as at June 30, 2020.

TYPE OF HEDGE	BUY CURRENCY	AMOUNT TO RECEIVE	SELL CURRENCY	AMOUNT TO PAY	MATURITY	HEDGED ITEM
Cash flow	USD	200	CAD	279	2020	Commercial paper
Cash flow	USD	370	CAD	480	2020	Anticipated transactions
Cash flow	PHP	1,012	CAD	26	2020	Anticipated transactions
Cash flow	USD	588	CAD	768	2021	Anticipated transactions
Economic	USD	26	CAD	36	2021	Anticipated transactions
Economic - put options	USD	209	CAD	284	2020	Anticipated transactions
Economic - put options	USD	214	CAD	284	2021	Anticipated transactions
Economic - call options	USD	149	CAD	201	2020	Anticipated transactions
Economic - call options	CAD	87	USD	60	2020	Anticipated transactions
Economic - call options	USD	47	CAD	65	2021	Anticipated transactions
Economic - call options	CAD	68	USD	47	2021	Anticipated transactions
Economic - options (1)	USD	60	CAD	81	2020	Anticipated transactions
Economic - options (1)	USD	120	CAD	161	2021	Anticipated transactions

(1) Foreign currency options with a leverage provision and a profit cap limitation.

INTEREST RATE EXPOSURES

During Q1 2020, we entered into a series of interest rate options to economically hedge the dividend rate resets on $582 million of our preferred shares having varying reset dates in 2021. The fair value of these interest rate options at June 30, 2020 was a net liability of $5 million, recognized in Other current assets, Trade payables and other liabilities, Other non-current assets and Other non-current liabilities in the consolidated statements of financial position. A loss of $3 million and $5 million for the three and six months ended June 30, 2020, respectively, relating to these interest rate options is recognized in Other (expense) income in the consolidated income statements.

A 1% increase (decrease) in interest rates would result in a decrease (increase) of $31 million ($38 million) in net earnings from continuing operations at June 30, 2020.

EQUITY PRICE EXPOSURES

We use equity forward contracts on BCE’s common shares to economically hedge the cash flow exposure related to the settlement of equity settled share-based compensation plans and the equity price risk related to a cash-settled share-based payment plan. The fair value of our equity forward contracts at June 30, 2020 was a net liability of $39 million, recognized in Other current assets, Trade payables and other liabilities, Other non-current assets and Other non-current liabilities in the consolidated statements of financial position. The fair value of our equity forward contracts at December 31, 2019 was an asset of $40 million recognized in Other current assets and Other non-current assets in the consolidated statements of financial position. A loss of $9 million and $37 million for the three and six months ended June 30, 2020, respectively, relating to these equity forward contracts is recognized in Other (expense) income in the consolidated income statements.

A 5% increase (decrease) in the market price of BCE’s common shares at June 30, 2020 would result in a gain (loss) of $40 million recognized in net earnings from continuing operations, with all other variables held constant.

COMMODITY PRICE EXPOSURE

In Q1 2020, we entered into fuel swaps to economically hedge the purchase cost of fuel in 2020 and 2021. The fair value of our fuel swaps at June 30, 2020 was an asset of $2 million included in Other current assets and Other non-current assets in the consolidated statements of financial position. A gain of $6 million and $2 million for the three and six months ended June 30, 2020, respectively, is recognized in Other (expense) income in the consolidated income statements.

A 25% increase (decrease) in the market price of fuel at June 30, 2020 would result in a gain (loss) of $4 million recognized in net earnings from continuing operations, with all other variables held constant.

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Share-based payments

6 Months Ended

Jun. 30, 2020

Share-based Payment Arrangements [Abstract]

Share-based payments

Note 15 Share-based payments

The following share-based payment amounts are included in the income statements as operating costs.

	THREE MONTHS		SIX MONTHS
FOR THE PERIOD ENDED JUNE 30	2020	2019	2020	2019
ESP	(8)	(8)	(16)	(15)
Restricted share units (RSUs) and performance share units (PSUs)	(13)	(11)	(29)	(31)
Other (1)	(2)	(2)	(5)	(6)
Total share-based payments	(23)	(21)	(50)	(52)

(1) Includes deferred share plan (DSP), deferred share units (DSUs) and stock options.

The following tables summarize the change in unvested ESP contributions and outstanding RSUs/PSUs, DSUs and stock options for the period ended June 30, 2020.

ESP

	NUMBER OF ESP SHARES
Unvested contributions, January 1, 2020	1,124,198
Contributions(1)	316,202
Dividends credited	29,520
Vested	(274,732)
Forfeited	(50,017)
Unvested contributions, June 30, 2020	1,145,171

(1)The weighted average fair value of the shares contributed during the six months ended June 30, 2020 was $58.

RSUs/PSUs

	NUMBER OF RSUs/PSUs
Outstanding, January 1, 2020	2,915,118
Granted(1)	861,582
Dividends credited	79,152
Settled	(923,059)
Forfeited	(21,307)
Outstanding, June 30, 2020	2,911,486

(1)The weighted average fair value of the RSUs/PSUs granted during the six months ended June 30, 2020 was $63.

DSUs

	NUMBER OF DSUs
Outstanding, January 1, 2020	4,623,099
Issued(1)	62,996
Settlement of RSUs/PSUs	90,435
Dividends credited	128,403
Settled	(595,189)
Outstanding, June 30, 2020	4,309,744

(1)The weighted average fair value of the DSUs issued during the six months ended June 30, 2020 was $62.

STOCK OPTIONS

	NUMBER OF OPTIONS	WEIGHTED AVERAGE EXERCISE PRICE ($)
Outstanding, January 1, 2020	12,825,541	57
Granted	3,410,150	65
Exercised(1)	(419,546)	53
Forfeited	(41,845)	60
Outstanding, June 30, 2020	15,774,300	59
Exercisable, June 30, 2020	5,299,256	58

(1)The weighted average market share price for options exercised during the six months ended June 30, 2020 was $64.

ASSUMPTIONS USED IN STOCK OPTION PRICING MODEL

The fair value of options granted was determined using a variation of a binomial option pricing model that takes into account factors specific to the share incentive plans, such as the vesting period. The following table shows the principal assumptions used in the valuation.

	2020
Weighted average fair value per option granted	$1.55
Weighted average share price	$63
Weighted average exercise price	$65
Expected dividend growth	5	%
Expected volatility	12	%
Risk-free interest rate	1	%
Expected life (years)	4

Expected dividend growth is commensurate with BCE's dividend growth strategy. Expected volatility is based on the historical volatility of BCE’s share price. The risk-free rate used is equal to the yield available on Government of Canada bonds at the date of grant with a term equal to the expected life of the options.

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COVID-19

6 Months Ended

Jun. 30, 2020

Unusual or Infrequent Items, or Both [Abstract]

COVID-19

Note 16 COVID-19

Although our telecommunications, media and broadcasting operations have been recognized by Canadian governments as essential services, our business has nonetheless, in the second quarter of 2020, been negatively impacted by the emergency measures adopted to combat the spread of COVID-19 and the resulting adverse economic conditions. All of our segments have been adversely affected, but we have seen a more pronounced impact on media advertising revenues, wireless product sales and outbound roaming revenues. Given that emergency measures taken to address the COVID-19 pandemic remained in place for most or all, as the case may be, of the second quarter and that certain of these measures gradually started being eased only in the latter part of the second quarter, such measures had a more significant impact on our second quarter financial results than on our first quarter financial results. Depending on the severity and duration of COVID-19 disruptions, including possible resurgences in the number of COVID-19 cases, our operations and financial results could continue to be significantly and negatively impacted in future periods. It is not possible at this time to estimate the magnitude of such future impacts.

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Basis of presentation and significant accounting policies (Policies)

6 Months Ended

Jun. 30, 2020

Accounting Policies, Changes In Accounting Estimates And Errors [Abstract]

Adoption of amended accounting standards

Adoption of amended accounting standards

As required, effective January 1, 2020, we adopted the following amended accounting standards.

STANDARD	DESCRIPTION	IMPACT
IFRIC Agenda Decision on IFRS 16 - Leases	International Financial Reporting Interpretations Committee (IFRIC) agenda decision clarifying the determination of the lease term for cancellable or renewable leases under IFRS 16.	This agenda decision did not have a significant impact on our financial statements.
Definition of a Business, Amendments to IFRS 3 - Business Combinations	These amendments to the implementation guidance of IFRS 3 clarify the definition of a business to assist entities to determine whether a transaction should be accounted for as a business combination or an asset acquisition.	These amendments did not have any impact on our financial statements. They may affect whether future acquisitions are accounted for as business combinations or asset acquisitions, along with the resulting allocation of the purchase price between the net identifiable assets acquired and goodwill.

Future changes to accounting standards

Future changes to accounting standards

The following amendments to standards issued by the IASB have not yet been adopted by BCE.

STANDARD	DESCRIPTION	IMPACT	EFFECTIVE DATE
COVID-19-Related Rent Concessions, Amendment to IFRS 16 – Leases	This amendment provides an optional relief to lessees from applying IFRS 16’s guidance on lease modification accounting for rent concessions arising as a direct consequence of the COVID-19 pandemic.	We are currently assessing the impact of this amendment, if we adopt the optional relief.	Effective for annual reporting periods beginning on or after June 1, 2020. Early application is permitted.
Onerous Contracts – Cost of Fulfilling a Contract, Amendments to IAS 37 – Provisions	These amendments clarify which costs should be included in determining the cost of fulfilling a contract when assessing whether a contract is onerous.	We are currently assessing the impact of these amendments.	Effective for annual reporting periods beginning on or after January 1, 2022. Early application is permitted.

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Discontinued operations (Tables)

6 Months Ended

Jun. 30, 2020

Disclosure of analysis of single amount of discontinued operations [abstract]

Disclosure of detailed information on discontinued operations

The following table summarizes the carrying value of the assets and liabilities that are classified as held for sale at June 30, 2020.

	June 30, 2020
Contract assets	1
Contract costs	3
Property, plant and equipment	479
Intangible assets	227
Goodwill	115
Total assets held for sale	825
Long-term debt	115
Deferred tax liabilities	82
Other non-current liabilities	8
Total liabilities held for sale	205
Net assets held for sale	620

The following tables summarize the income statements and statements of cash flows of our discontinued operations for the three and six months ended June 30, 2020 and 2019.

	THREE MONTHS		SIX MONTHS
FOR THE PERIOD ENDED JUNE 30	2020	2019	2020	2019
Operating revenues	39	41	79	86
Operating costs	(19)	(18)	(35)	(36)
Depreciation	(8)	(9)	(18)	(18)
Amortization	(3)	(3)	(7)	(7)
Interest expense	(2)	(2)	(4)	(4)
Other income	(1)	(1)	(2)	(1)
Income taxes	(2)	(1)	(4)	(4)
Net earnings attributable to common shareholders	4	7	9	16

	THREE MONTHS		SIX MONTHS
FOR THE PERIOD ENDED JUNE 30	2020	2019	2020	2019
Cash flows from operating activities	17	22	39	47
Cash flows used in investing activities	(8)	(5)	(15)	(7)
Cash flows used in financing activities	(2)	(2)	(3)	(3)
Net increase in cash	7	15	21	37

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Segmented information (Tables)

6 Months Ended

Jun. 30, 2020

Operating Segments [Abstract]

Segmented information

The following tables present financial information by segment for the three month periods ended June 30, 2020 and 2019.

FOR THE THREE MONTH PERIOD ENDED JUNE 30, 2020	NOTE	BELL WIRELESS	BELL WIRELINE	BELL MEDIA	INTER- SEGMENT ELIMINA- TIONS	BCE
Operating revenues
External customers		1,909	2,963	482	—	5,354
Inter-segment		13	80	97	(190)	—
Total operating revenues		1,922	3,043	579	(190)	5,354
Operating costs	5	(1,043)	(1,764)	(406)	190	(3,023)
Segment profit (1)		879	1,279	173	—	2,331
Severance, acquisition and other costs	6					(22)
Depreciation and amortization						(1,103)
Finance costs
Interest expense						(280)
Interest on post-employment benefit obligations	13					(11)
Impairment of assets	7					(449)
Other expense	8					(80)
Income taxes						(96)
Net earnings from continuing operations						290
Net earnings from discontinued operations						4
Net earnings						294

(1) The chief operating decision maker uses primarily one measure of profit to make decisions and assess performance, being operating revenues less

operating costs.

FOR THE THREE MONTH PERIOD ENDED JUNE 30, 2019		NOTE	BELL WIRELESS	BELL WIRELINE	BELL MEDIA	INTER- SEGMENT ELIMINA- TIONS	BCE
Operating revenues
	External customers		2,146	3,006	737	—	5,889
	Inter-segment		14	67	105	(186)	—
Total operating revenues			2,160	3,073	842	(186)	5,889
Operating costs		5	(1,192)	(1,723)	(588)	186	(3,317)
Segment profit (1)			968	1,350	254	—	2,572
Severance, acquisition and other costs		6					(39)
Depreciation and amortization							(1,099)
Finance costs
	Interest expense						(279)
	Interest on post-employment benefit obligations	13					(15)
Impairment of assets		7					(1)
Other expense		8					(54)
Income taxes							(275)
Net earnings from continuing operations							810
Net earnings from discontinued operations							7
Net earnings							817

(1) The chief operating decision maker uses primarily one measure of profit to make decisions and assess performance, being operating revenues less operating costs.

The following tables present financial information by segment for the six month periods ended June 30, 2020 and 2019.

FOR THE SIX MONTH PERIOD ENDED JUNE 30, 2020	NOTE	BELL WIRELESS	BELL WIRELINE	BELL MEDIA	INTER- SEGMENT ELIMINA- TIONS	BCE
Operating revenues
External customers		3,931	5,923	1,140	—	10,994
Inter-segment		26	156	191	(373)	—
Total operating revenues		3,957	6,079	1,331	(373)	10,994
Operating costs	5	(2,150)	(3,465)	(1,003)	373	(6,245)
Segment profit (1)		1,807	2,614	328	—	4,749
Severance, acquisition and other costs	6					(38)
Depreciation and amortization						(2,191)
Finance costs
Interest expense						(557)
Interest on post-employment benefit obligations	13					(23)
Impairment of assets	7					(456)
Other expense	8					(127)
Income taxes						(339)
Net earnings from continuing operations						1,018
Net earnings from discontinued operations						9
Net earnings						1,027

(1) The chief operating decision maker uses primarily one measure of profit to make decisions and assess performance, being operating revenues less operating costs.

FOR THE SIX MONTH PERIOD ENDED JUNE 30, 2019		NOTE	BELL WIRELESS	BELL WIRELINE	BELL MEDIA	INTER- SEGMENT ELIMINA- TIONS	BCE
Operating revenues
	External customers		4,210	5,991	1,377	—	11,578
	Inter-segment		27	134	210	(371)	—
Total operating revenues			4,237	6,125	1,587	(371)	11,578
Operating costs		5	(2,377)	(3,450)	(1,168)	371	(6,624)
Segment profit (1)			1,860	2,675	419	—	4,954
Severance, acquisition and other costs		6					(63)
Depreciation and amortization							(2,189)
Finance costs
	Interest expense						(560)
	Interest on post-employment benefit obligations	13					(31)
Impairment of assets		7					(5)
Other income		8					51
Income taxes							(565)
Net earnings from continuing operations							1,592
Net earnings from discontinued operations							16
Net earnings							1,608

(1) The chief operating decision maker uses primarily one measure of profit to make decisions and assess performance, being operating revenues less operating costs.

Revenues by services and products

Revenues by services and products

	THREE MONTHS		SIX MONTHS
FOR THE PERIOD ENDED JUNE 30	2020	2019	2020	2019
Services(1)
Wireless	1,481	1,580	3,016	3,108
Wireline data	1,916	1,914	3,807	3,780
Wireline voice	863	897	1,735	1,804
Media	482	737	1,140	1,377
Other wireline services	58	62	120	121
Total services	4,800	5,190	9,818	10,190
Products(2)
Wireless	428	566	915	1,102
Wireline data	113	123	236	265
Wireline equipment and other	13	10	25	21
Total products	554	699	1,176	1,388
Total operating revenues	5,354	5,889	10,994	11,578

(1) Our service revenues are generally recognized over time.

(2) Our product revenues are generally recognized at a point in time.

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Operating costs (Tables)

6 Months Ended

Jun. 30, 2020

Analysis of income and expense [abstract]

Disclosure of operating costs

			THREE MONTHS		SIX MONTHS
FOR THE PERIOD ENDED JUNE 30		NOTE	2020	2019	2020	2019
Labour costs
	Wages, salaries and related taxes and benefits		(994)	(1,085)	(2,035)	(2,139)
	Post-employment benefit plans service cost (net of capitalized amounts)	13	(64)	(58)	(139)	(126)
	Other labour costs (1)		(236)	(257)	(463)	(486)
Less:
	Capitalized labour		248	270	494	513
Total labour costs			(1,046)	(1,130)	(2,143)	(2,238)
Cost of revenues (2)			(1,471)	(1,706)	(3,125)	(3,444)
Other operating costs (3)			(506)	(481)	(977)	(942)
Total operating costs			(3,023)	(3,317)	(6,245)	(6,624)

(1)Other labour costs include contractor and outsourcing costs.

(2)Cost of revenues includes costs of wireless devices and other equipment sold, network and content costs, and payments to other carriers.

(3)Other operating costs include marketing, advertising and sales commission costs, bad debt expense, taxes other than income taxes, information technology costs, professional service fees and rent.

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Severance, acquisition and other costs (Tables)

6 Months Ended

Jun. 30, 2020

Analysis of income and expense [abstract]

Disclosure of severance, acquisition and other costs

	THREE MONTHS		SIX MONTHS
FOR THE PERIOD ENDED JUNE 30	2020	2019	2020	2019
Severance	(2)	(20)	(10)	(27)
Acquisition and other	(20)	(19)	(28)	(36)
Total severance, acquisition and other costs	(22)	(39)	(38)	(63)

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Other (expense) income (Tables)

6 Months Ended

Jun. 30, 2020

Analysis of income and expense [abstract]

Schedule of other income

Note 8 Other (expense) income

			THREE MONTHS		SIX MONTHS
FOR THE PERIOD ENDED JUNE 30		NOTE	2020	2019	2020	2019
Losses on retirements and disposals of property, plant and equipment and intangible assets			(54)	(1)	(70)	(6)
Net mark-to-market (losses) gains on derivatives used to economically hedge equity settled share-based compensation plans			(9)	12	(37)	112
Early debt redemption costs		12	—	(18)	(17)	(18)
Equity gains (losses) from investments in associates and joint ventures
	Gain (loss) on investment		11	(53)	21	(53)
	Operations		(24)	(6)	(15)	5
Losses on investments			—	—	—	(4)
Other			(4)	12	(9)	15
Total other (expense) income			(80)	(54)	(127)	51

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Earnings per share (Tables)

6 Months Ended

Jun. 30, 2020

Earnings per share [abstract]

Schedule of components used in calculation of basic and diluted earnings per share

The following table shows the components used in the calculation of basic and diluted net earnings per common share for earnings attributable to common shareholders.

		THREE MONTHS		SIX MONTHS
FOR THE PERIOD ENDED JUNE 30		2020	2019	2020	2019
Net earnings from continuing operations attributable to common shareholders - basic		233	754	908	1,485
Net earnings from discontinued operations attributable to common shareholders - basic		4	7	9	16
Net earnings attributable to common shareholders - basic		237	761	917	1,501
Dividends declared per common share (in dollars)		0.8325	0.7925	1.6650	1.5850
Weighted average number of common shares outstanding (in millions)
	Weighted average number of common shares outstanding - basic	904.3	899.5	904.2	898.9
	Assumed exercise of stock options (1)	0.1	0.8	0.2	0.5
Weighted average number of common shares outstanding - diluted (in millions)		904.4	900.3	904.4	899.4

(1)The calculation of the assumed exercise of stock options includes the effect of the average unrecognized future compensation cost of dilutive options. It excludes options for which the exercise price is higher than the average market value of a BCE common share. The number of excluded options was 14,358,128 for the second quarter of 2020 and 9,554,587 for the first half of 2020, compared to 3,379,952 for the second quarter of 2019 and 6,349,240 for the first half of 2019.

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Trade and other receivables (Tables)

6 Months Ended

Jun. 30, 2020

Subclassifications of assets, liabilities and equities [abstract]

Schedule of trade and other receivables

	NOTE	June 30, 2020	December 31, 2019
Trade receivables		2,789	2,981
Allowance for revenue adjustments		(133)	(104)
Allowance for doubtful accounts	14	(104)	(62)
Current tax receivable		32	23
Other accounts receivable		228	200
Total trade and other receivables		2,812	3,038

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Other non-current assets (Tables)

6 Months Ended

Jun. 30, 2020

Subclassifications of assets, liabilities and equities [abstract]

Disclosure of other non-current assets

	NOTE	June 30, 2020	December 31, 2019
Net assets of post-employment benefit plans	13	765	558
Derivative assets	14	539	200
Long-term receivables		235	142
Investments(1)	14	147	128
Publicly-traded and privately-held investments	14	122	129
Other		123	117
Total other non-current assets		1,931	1,274

(1)These amounts have been pledged as security related to obligations for certain employee benefits and are not available for general use.

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Post-employee benefit plans (Tables)

6 Months Ended

Jun. 30, 2020

Employee Benefits [Abstract]

Components of post-employment benefit plans service cost

COMPONENTS OF POST-EMPLOYMENT BENEFIT PLANS SERVICE COST

		THREE MONTHS		SIX MONTHS
FOR THE PERIOD ENDED JUNE 30		2020	2019	2020	2019
DB pension		(55)	(48)	(109)	(96)
DC pension		(26)	(25)	(62)	(58)
OPEBs		—	—	(1)	(1)
Less:
	Capitalized benefit plans cost	17	15	33	29
Total post-employment benefit plans service cost		(64)	(58)	(139)	(126)

Components of post-employment benefit plans financing cost

COMPONENTS OF POST-EMPLOYMENT BENEFIT PLANS FINANCING COST

	THREE MONTHS		SIX MONTHS
FOR THE PERIOD ENDED JUNE 30	2020	2019	2020	2019
DB pension	(2)	(5)	(5)	(10)
OPEBs	(9)	(10)	(18)	(21)
Total interest on post-employment benefit obligations	(11)	(15)	(23)	(31)

Disclosure of funded status of post-employment benefit plans

The following table shows the funded status of our post-employment benefit obligations.

	FUNDED		PARTIALLY FUNDED(1)		UNFUNDED(2)		TOTAL
FOR THE PERIOD ENDED	JUNE 30, 2020	DECEMBER 31, 2019	JUNE 30, 2020	DECEMBER 31, 2019	JUNE 30, 2020	DECEMBER 31, 2019	JUNE 30, 2020	DECEMBER 31, 2019
Present value of post-employment benefit obligations	(25,790)	(24,961)	(1,964)	(1,918)	(308)	(300)	(28,062)	(27,179)
Fair value of plan assets	26,493	25,474	374	376	—	—	26,867	25,850
Plan surplus (deficit)	703	513	(1,590)	(1,542)	(308)	(300)	(1,195)	(1,329)

(1)The partially funded plans consist of supplementary executive retirement plans (SERPs) for eligible employees and certain OPEBs. The company partially funds the SERPs through letters of credit and a retirement compensation arrangement account with the Canada Revenue Agency. Certain paid-up life insurance benefits are funded through life insurance contracts.

(2)Our unfunded plans consist of certain OPEBs, which are paid as claims are incurred.

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Financial assets and liabilities (Tables)

6 Months Ended

Jun. 30, 2020

Financial Instruments [Abstract]

Disclosure of financial liabilities

The following table provides the fair value details of financial instruments measured at amortized cost in the consolidated statements of financial position.

			JUNE 30, 2020		DECEMBER 31, 2019
	CLASSIFICATION	FAIR VALUE METHODOLOGY	CARRYING VALUE	FAIR VALUE	CARRYING VALUE	FAIR VALUE
CRTC tangible benefits obligation	Trade payables and other liabilities and other non-current liabilities	Present value of estimated future cash flows discounted using observable market interest rates	12	12	29	29
CRTC deferral account obligation	Trade payables and other liabilities and other non-current liabilities	Present value of estimated future cash flows discounted using observable market interest rates	82	86	82	85
Debt securities and other debt	Debt due within one year and long-term debt	Quoted market price of debt	21,517	25,068	18,653	20,905

Disclosure of fair value measurement of assets

The following table provides the fair value details of financial instruments measured at fair value in the consolidated statements of financial position.

			FAIR VALUE
	CLASSIFICATION	CARRYING VALUE OF ASSET (LIABILITY)	QUOTED PRICES IN ACTIVE MARKETS FOR IDENTICAL ASSETS (LEVEL 1)	OBSERVABLE MARKET DATA (LEVEL 2)(1)	NON-OBSERVABLE MARKET INPUTS (LEVEL 3)(2)
June 30, 2020
Publicly-traded and privately-held investments	Other non-current assets	122	2	—	120
Derivative financial instruments	Other current assets, trade payables and other liabilities, other non-current assets and liabilities	522	—	522	—
Maple Leaf Sports & Entertainment Ltd. (MLSE) financial liability(3)	Trade payables and other liabilities	(138)	—	—	(138)
Other	Other non-current assets and liabilities	91	2	147	(58)
December 31, 2019
Publicly-traded and privately-held investments	Other non-current assets	129	2	—	127
Derivative financial instruments	Other current assets, trade payables and other liabilities, other non-current assets and liabilities	165	—	165	—
MLSE financial liability(3)	Trade payables and other liabilities	(135)	—	—	(135)
Other	Other non-current assets and liabilities	71	1	128	(58)

(1)Observable market data such as equity prices, interest rates, swap rate curves and foreign currency exchange rates.

(2)Non-observable market inputs such as discounted cash flows and earnings multiples. A reasonable change in our assumptions would not result in a significant increase (decrease) to our level 3 financial instruments.

(3)Represents BCE’s obligation to repurchase the BCE Master Trust Fund's (Master Trust Fund) 9% interest in MLSE at a price not less than an agreed minimum price should the Master Trust Fund exercise its put option. The obligation to repurchase is marked to market each reporting period and the gain or loss is recognized in Other (expense) income in the consolidated income statements. The option has been exercisable since 2017.

Disclosure of fair value measurement of liabilities

The following table provides the fair value details of financial instruments measured at fair value in the consolidated statements of financial position.

			FAIR VALUE
	CLASSIFICATION	CARRYING VALUE OF ASSET (LIABILITY)	QUOTED PRICES IN ACTIVE MARKETS FOR IDENTICAL ASSETS (LEVEL 1)	OBSERVABLE MARKET DATA (LEVEL 2)(1)	NON-OBSERVABLE MARKET INPUTS (LEVEL 3)(2)
June 30, 2020
Publicly-traded and privately-held investments	Other non-current assets	122	2	—	120
Derivative financial instruments	Other current assets, trade payables and other liabilities, other non-current assets and liabilities	522	—	522	—
Maple Leaf Sports & Entertainment Ltd. (MLSE) financial liability(3)	Trade payables and other liabilities	(138)	—	—	(138)
Other	Other non-current assets and liabilities	91	2	147	(58)
December 31, 2019
Publicly-traded and privately-held investments	Other non-current assets	129	2	—	127
Derivative financial instruments	Other current assets, trade payables and other liabilities, other non-current assets and liabilities	165	—	165	—
MLSE financial liability(3)	Trade payables and other liabilities	(135)	—	—	(135)
Other	Other non-current assets and liabilities	71	1	128	(58)

(1)Observable market data such as equity prices, interest rates, swap rate curves and foreign currency exchange rates.

(2)Non-observable market inputs such as discounted cash flows and earnings multiples. A reasonable change in our assumptions would not result in a significant increase (decrease) to our level 3 financial instruments.

(3)Represents BCE’s obligation to repurchase the BCE Master Trust Fund's (Master Trust Fund) 9% interest in MLSE at a price not less than an agreed minimum price should the Master Trust Fund exercise its put option. The obligation to repurchase is marked to market each reporting period and the gain or loss is recognized in Other (expense) income in the consolidated income statements. The option has been exercisable since 2017.

Disclosure of change in allowance for doubtful accounts

The following table provides the change in allowance for doubtful accounts for trade receivables, which reflects an increase for the period ended June 30, 2020, mainly as a result of the impact of the COVID-19 pandemic.

	NOTE
Balance, January 1, 2020		(62)
Additions		(90)
Usage		48
Balance, June 30, 2020	10	(104)

Disclosure of details on trade receivables not impaired

The following table provides further details on trade receivables, net of allowance for doubtful accounts.

	June 30, 2020	December 31, 2019
Trade receivables not past due	1,926	2,082
Trade receivables past due
Under 60 days	395	541
60 to 120 days	252	232
Over 120 days	112	64
Trade receivables, net of allowance for doubtful accounts	2,685	2,919

Disclosure of detailed information of foreign currency forward contracts and options

The following table provides further details on our outstanding foreign currency forward contracts and options as at June 30, 2020.

TYPE OF HEDGE	BUY CURRENCY	AMOUNT TO RECEIVE	SELL CURRENCY	AMOUNT TO PAY	MATURITY	HEDGED ITEM
Cash flow	USD	200	CAD	279	2020	Commercial paper
Cash flow	USD	370	CAD	480	2020	Anticipated transactions
Cash flow	PHP	1,012	CAD	26	2020	Anticipated transactions
Cash flow	USD	588	CAD	768	2021	Anticipated transactions
Economic	USD	26	CAD	36	2021	Anticipated transactions
Economic - put options	USD	209	CAD	284	2020	Anticipated transactions
Economic - put options	USD	214	CAD	284	2021	Anticipated transactions
Economic - call options	USD	149	CAD	201	2020	Anticipated transactions
Economic - call options	CAD	87	USD	60	2020	Anticipated transactions
Economic - call options	USD	47	CAD	65	2021	Anticipated transactions
Economic - call options	CAD	68	USD	47	2021	Anticipated transactions
Economic - options (1)	USD	60	CAD	81	2020	Anticipated transactions
Economic - options (1)	USD	120	CAD	161	2021	Anticipated transactions

(1) Foreign currency options with a leverage provision and a profit cap limitation.

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Share-based payments (Tables)

6 Months Ended

Jun. 30, 2020

Share-based Payment Arrangements [Abstract]

Explanation of effect of share-based payments on entity's profit or loss

The following share-based payment amounts are included in the income statements as operating costs.

	THREE MONTHS		SIX MONTHS
FOR THE PERIOD ENDED JUNE 30	2020	2019	2020	2019
ESP	(8)	(8)	(16)	(15)
Restricted share units (RSUs) and performance share units (PSUs)	(13)	(11)	(29)	(31)
Other (1)	(2)	(2)	(5)	(6)
Total share-based payments	(23)	(21)	(50)	(52)

(1) Includes deferred share plan (DSP), deferred share units (DSUs) and stock options.

Disclosure of number and weighted average exercise prices of other equity instruments

ESP

	NUMBER OF ESP SHARES
Unvested contributions, January 1, 2020	1,124,198
Contributions(1)	316,202
Dividends credited	29,520
Vested	(274,732)
Forfeited	(50,017)
Unvested contributions, June 30, 2020	1,145,171

(1)The weighted average fair value of the shares contributed during the six months ended June 30, 2020 was $58.

RSUs/PSUs

	NUMBER OF RSUs/PSUs
Outstanding, January 1, 2020	2,915,118
Granted(1)	861,582
Dividends credited	79,152
Settled	(923,059)
Forfeited	(21,307)
Outstanding, June 30, 2020	2,911,486

(1)The weighted average fair value of the RSUs/PSUs granted during the six months ended June 30, 2020 was $63.

DSUs

	NUMBER OF DSUs
Outstanding, January 1, 2020	4,623,099
Issued(1)	62,996
Settlement of RSUs/PSUs	90,435
Dividends credited	128,403
Settled	(595,189)
Outstanding, June 30, 2020	4,309,744

(1)The weighted average fair value of the DSUs issued during the six months ended June 30, 2020 was $62.

Disclosure of number and weighted average exercise prices of share options

STOCK OPTIONS

	NUMBER OF OPTIONS	WEIGHTED AVERAGE EXERCISE PRICE ($)
Outstanding, January 1, 2020	12,825,541	57
Granted	3,410,150	65
Exercised(1)	(419,546)	53
Forfeited	(41,845)	60
Outstanding, June 30, 2020	15,774,300	59
Exercisable, June 30, 2020	5,299,256	58

(1)The weighted average market share price for options exercised during the six months ended June 30, 2020 was $64.

Disclosure of indirect measurement of fair value of goods or services received, share options granted during period

The following table shows the principal assumptions used in the valuation.

	2020
Weighted average fair value per option granted	$1.55
Weighted average share price	$63
Weighted average exercise price	$65
Expected dividend growth	5	%
Expected volatility	12	%
Risk-free interest rate	1	%
Expected life (years)	4

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Discontinued operations (Details) $ in Millions	Jun. 01, 2020 CAD ($)
Disclosure of analysis of single amount of discontinued operations [abstract]
Proceeds from sale of operations	$ 1,040

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Discontinued operations - Assets and Liabilities (Details) - CAD ($) $ in Millions	Jun. 30, 2020	Dec. 31, 2019
ASSETS
Property, plant and equipment	$ 26,840	$ 27,636
Intangible assets	12,897	13,352
Goodwill	10,551	10,667
LIABILITIES
Long-term debt	25,024	22,415
Deferred tax liabilities	3,765	3,561
Other non-current liabilities	934	$ 871
Disposal groups classified as held for sale
ASSETS
Contract assets	1
Contract costs	3
Property, plant and equipment	479
Intangible assets	227
Goodwill	115
Total assets held for sale	825
LIABILITIES
Long-term debt	115
Deferred tax liabilities	82
Other non-current liabilities	8
Total liabilities held for sale	205
Net assets held for sale	620
Contract costs	$ 3

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Discontinued operations - Income Statement (Details) - CAD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Discontinued operations
Disclosure of analysis of single amount of discontinued operations [line items]
Operating revenues	$ 39	$ 41	$ 79	$ 86
Operating costs	(19)	(18)	(35)	(36)
Depreciation	(8)	(9)	(18)	(18)
Amortization	(3)	(3)	(7)	(7)
Interest expense
Interest expense	(2)	(2)	(4)	(4)
Other (expense) income	(1)	(1)	(2)	(1)
Income taxes	2	1	4	4
Net earnings attributable to common shareholders	4	7	9	16
Depreciation expense	8	9	18	18
Amortisation expense	3	3	7	7
Operating revenues	5,354	5,889	10,994	11,578
Operating costs	(3,023)	(3,317)	(6,245)	(6,624)
Depreciation	(869)	(879)	(1,727)	(1,752)
Amortization	(234)	(220)	(464)	(437)
Interest expense	(280)	(279)	(557)	(560)
Other (expense) income	(80)	(54)	(127)	51
Net earnings attributable to common shareholders	4	7	9	16
Depreciation expense	869	879	1,727	1,752
Amortisation expense	$ 234	$ 220	$ 464	$ 437

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Discontinued operations - Cash Flows (Details) - CAD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Disclosure of analysis of single amount of discontinued operations [line items]
Cash flows from operating activities	$ 17	$ 22	$ 39	$ 47
Cash flows used in investing activities	(8)	(5)	(15)	(7)
Cash flows used in financing activities	(2)	(2)	(3)	(3)
Net increase in cash	354	173	1,156	294
Discontinued operations
Disclosure of analysis of single amount of discontinued operations [line items]
Cash flows from operating activities	17	22	39	47
Cash flows used in investing activities	(8)	(5)	(15)	(7)
Cash flows used in financing activities	(2)	(2)	(3)	(3)
Net increase in cash	$ 7	$ 15	$ 21	$ 37

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Segmented information - Segmented Information (Details) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2020 CAD ($)	Jun. 30, 2019 CAD ($)	Jun. 30, 2020 CAD ($) segment	Jun. 30, 2019 CAD ($)
Operating Segments [Abstract]
Number of operating segments | segment			3
Disclosure of operating segments [line items]
Operating revenues	$ 5,354	$ 5,889	$ 10,994	$ 11,578
Operating costs	(3,023)	(3,317)	(6,245)	(6,624)
Segment profit	2,331	2,572	4,749	4,954
Severance, acquisition and other costs	(22)	(39)	(38)	(63)
Depreciation and amortization	(1,103)	(1,099)	(2,191)	(2,189)
Finance costs
Interest expense	(280)	(279)	(557)	(560)
Interest on post-employment benefit obligations	(11)	(15)	(23)	(31)
Impairment of assets	(449)	(1)	(456)	(5)
Other (expense) income	(80)	(54)	(127)	51
Income taxes	(96)	(275)	(339)	(565)
Net earnings from continuing operations	290	810	1,018	1,592
Net earnings from discontinued operations	4	7	9	16
Net earnings	294	817	1,027	1,608
BELL WIRELESS
Disclosure of operating segments [line items]
Operating revenues	1,909	2,146	3,931	4,210
BELL WIRELINE
Disclosure of operating segments [line items]
Operating revenues	2,963	3,006	5,923	5,991
BELL MEDIA
Disclosure of operating segments [line items]
Operating revenues	482	737	1,140	1,377
Finance costs
Impairment of assets	(452)
Operating segments | BELL WIRELESS
Disclosure of operating segments [line items]
Operating revenues	1,922	2,160	3,957	4,237
Operating costs	(1,043)	(1,192)	(2,150)	(2,377)
Segment profit	879	968	1,807	1,860
Operating segments | BELL WIRELINE
Disclosure of operating segments [line items]
Operating revenues	3,043	3,073	6,079	6,125
Operating costs	(1,764)	(1,723)	(3,465)	(3,450)
Segment profit	1,279	1,350	2,614	2,675
Operating segments | BELL MEDIA
Disclosure of operating segments [line items]
Operating revenues	579	842	1,331	1,587
Operating costs	(406)	(588)	(1,003)	(1,168)
Segment profit	173	254	328	419
INTER- SEGMENT ELIMINA- TIONS
Disclosure of operating segments [line items]
Operating revenues	(190)	(186)	(373)	(371)
Operating costs	190	186	373	371
INTER- SEGMENT ELIMINA- TIONS | BELL WIRELESS
Disclosure of operating segments [line items]
Operating revenues	13	14	26	27
INTER- SEGMENT ELIMINA- TIONS | BELL WIRELINE
Disclosure of operating segments [line items]
Operating revenues	80	67	156	134
INTER- SEGMENT ELIMINA- TIONS | BELL MEDIA
Disclosure of operating segments [line items]
Operating revenues	$ 97	$ 105	$ 191	$ 210

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Segmented information - Revenue by Services and Products (Details) - CAD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Disclosure of products and services [line items]
Total services	$ 4,800	$ 5,190	$ 9,818	$ 10,190
Total products	554	699	1,176	1,388
Total operating revenues	5,354	5,889	10,994	11,578
Wireless
Disclosure of products and services [line items]
Total services	1,481	1,580	3,016	3,108
Total products	428	566	915	1,102
Wireline data
Disclosure of products and services [line items]
Total services	1,916	1,914	3,807	3,780
Total products	113	123	236	265
Wireline voice
Disclosure of products and services [line items]
Total services	863	897	1,735	1,804
Media
Disclosure of products and services [line items]
Total services	482	737	1,140	1,377
Other wireline services
Disclosure of products and services [line items]
Total services	58	62	120	121
Wireline equipment and other
Disclosure of products and services [line items]
Total products	$ 13	$ 10	$ 25	$ 21

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Operating costs (Details) - CAD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Labour costs
Wages, salaries and related taxes and benefits	$ (994)	$ (1,085)	$ (2,035)	$ (2,139)
Post-employment benefit plans service cost (net of capitalized amounts)	(64)	(58)	(139)	(126)
Other labour costs	(236)	(257)	(463)	(486)
Less:
Capitalized labour	248	270	494	513
Total labour costs	(1,046)	(1,130)	(2,143)	(2,238)
Cost of revenues	(1,471)	(1,706)	(3,125)	(3,444)
Other operating costs	(506)	(481)	(977)	(942)
Total operating costs	$ (3,023)	$ (3,317)	$ (6,245)	$ (6,624)

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Severance, acquisition and other costs (Details) - CAD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Analysis of income and expense [abstract]
Severance	$ (2)	$ (20)	$ (10)	$ (27)
Acquisition and other	(20)	(19)	(28)	(36)
Total severance, acquisition and other costs	$ (22)	$ (39)	$ (38)	$ (63)

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Impairment of assets (Details) - CAD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Disclosure of reconciliation of changes in goodwill [line items]
Impairment of assets	$ 449	$ 1	$ 456	$ 5
Decrease in perpetuity growth rate resulting in recoverable amount being equal to carrying value (as a percent)	(0.60%)		(0.60%)
Increase in discount rate resulting in recoverable amount being equal to carrying amount (as a percent)	0.40%		0.40%
BELL MEDIA
Disclosure of reconciliation of changes in goodwill [line items]
Impairment of assets	$ 452
Cash-generating units
Disclosure of reconciliation of changes in goodwill [line items]
Explanation of period over which management has projected cash flows			5 years
Recoverable amount of asset or cash-generating unit	$ 942		$ 942
Cash-generating units | Minimum
Disclosure of reconciliation of changes in goodwill [line items]
Discount rate applied to cash flow projections	8.00%		8.00%
Growth rate used to extrapolate cash flow projections	(1.00%)		(1.00%)
Cash-generating units | Maximum
Disclosure of reconciliation of changes in goodwill [line items]
Discount rate applied to cash flow projections	9.50%		9.50%
Growth rate used to extrapolate cash flow projections	0.00%		0.00%
Indefinite-lived intangible assets
Disclosure of reconciliation of changes in goodwill [line items]
Impairment of assets	$ 291
Finite-lived intangible assets
Disclosure of reconciliation of changes in goodwill [line items]
Impairment of assets	146
Property, plant and equipment
Disclosure of reconciliation of changes in goodwill [line items]
Impairment of assets	$ 15

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Other (expense) income (Details) - CAD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Analysis of income and expense [abstract]
Losses on retirements and disposals of property, plant and equipment and intangible assets	$ (54)	$ (1)	$ (70)	$ (6)
Net mark-to-market (losses) gains on derivatives used to economically hedge equity settled share-based compensation plans	(9)	12	(37)	112
Early debt redemption costs	0	(18)	(17)	(18)
Equity (losses) income from investments in associates and joint ventures
Gain (loss) on investments	11	(53)	21	(53)
Operations	(24)	(6)	(15)	5
Losses on investments	0	0	0	(4)
Other	(4)	12	(9)	15
Total other (expense) income	$ (80)	$ (54)	$ (127)	$ 51

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Other (expense) income - Narrative (Details) - CAD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Analysis of income and expense [abstract]
Losses on disposals of property, plant and equipment	$ 45
Share of obligation to repurchase at fair value the minority interest in joint venture	$ 11	$ (53)	$ 21	$ (53)

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Earnings per share (Details) - CAD ($) $ / shares in Units, $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Earnings per share [abstract]
Net earnings from continuing operations attributable to common shareholders - basic	$ 233	$ 754	$ 908	$ 1,485
Net earnings from discontinued operations attributable to common shareholders - basic	4	7	9	16
Net earnings attributable to common shareholders - basic	$ 237	$ 761	$ 917	$ 1,501
Dividends declared per common share (in dollars) (CAD per share)	$ 0.8325	$ 0.7925	$ 1.6650	$ 1.5850
Weighted average number of common shares outstanding (in millions)
Weighted average number of common shares outstanding - basic (in shares)	904,300,000	899,500,000	904,200,000	898,900,000
Assumed exercise of stock options (in shares)	100,000	800,000	200,000	500,000
Weighted average number of common shares outstanding - diluted (in millions) (in shares)	904,400,000	900,300,000	904,400,000	899,400,000
Shares excluded from calculation of earnings per share (in shares)	14,358,128	3,379,952	9,554,587	6,349,240

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Trade and other receivables (Details) - CAD ($) $ in Millions	Jun. 30, 2020	Dec. 31, 2019
Disclosure Of Trade And Other Receivables [Line Items]
Current receivables from taxes other than income tax	$ 32	$ 23
Other current receivables	228	200
Trade and other receivables	2,812	3,038
Gross carrying amount
Disclosure Of Trade And Other Receivables [Line Items]
Trade receivables	2,789	2,981
Allowance for revenue adjustments
Disclosure Of Trade And Other Receivables [Line Items]
Trade receivables	(133)	(104)
Allowance for doubtful accounts
Disclosure Of Trade And Other Receivables [Line Items]
Trade receivables	$ (104)	$ (62)

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Other non-current assets (Details) - CAD ($) $ in Millions	Jun. 30, 2020	Dec. 31, 2019
Subclassifications of assets, liabilities and equities [abstract]
Net assets of post-employment benefit plans	$ 765	$ 558
Derivative assets	539	200
Long-term receivables	235	142
Investments	147	128
Publicly-traded and privately-held investments	122	129
Other	123	117
Total other non-current assets	$ 1,931	$ 1,274

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Debt (Details)		3 Months Ended		6 Months Ended
	Mar. 16, 2020 CAD ($)	Jun. 30, 2020 CAD ($)	Jun. 30, 2019 CAD ($)	Jun. 30, 2020 CAD ($)	Jun. 30, 2019 CAD ($)	Jun. 30, 2020 USD ($)	May 14, 2020 CAD ($)	Mar. 25, 2020 CAD ($)	Feb. 13, 2020 CAD ($)
Disclosure of detailed information about borrowings [line items]
Early debt redemption costs		$ 0	$ (18,000,000)	$ (17,000,000)	$ (18,000,000)
Series M-52 Medium Term Notes
Disclosure of detailed information about borrowings [line items]
Principal amount							$ 1,000,000,000
Series M-51 Medium Term Notes
Disclosure of detailed information about borrowings [line items]
Principal amount							$ 500,000,000		$ 750,000,000
Credit Facility
Disclosure of detailed information about borrowings [line items]
Principal amount		2,035,000,000		2,035,000,000		$ 1,450,000,000
Credit facilities		$ 4,000,000,000		$ 4,000,000,000
Series M-47 Medium Term Notes
Disclosure of detailed information about borrowings [line items]
Principal amount								$ 1,000,000,000
Series M-24 Medium Term Notes
Disclosure of detailed information about borrowings [line items]
Principal amount outstanding	$ 500,000,000
Early debt redemption costs	$ 17,000,000
Fixed interest rate | Series M-52 Medium Term Notes
Disclosure of detailed information about borrowings [line items]
Interest rate (as a percent)							2.50%
Fixed interest rate | Series M-51 Medium Term Notes
Disclosure of detailed information about borrowings [line items]
Interest rate (as a percent)							3.50%		3.50%
Fixed interest rate | Series M-47 Medium Term Notes
Disclosure of detailed information about borrowings [line items]
Interest rate (as a percent)								3.35%
Fixed interest rate | Series M-24 Medium Term Notes
Disclosure of detailed information about borrowings [line items]
Interest rate (as a percent)	4.95%

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Post-employee benefit plans - Service Cost (Details) - CAD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Disclosure of defined benefit plans [line items]
DC pension	$ (26)	$ (25)	$ (62)	$ (58)
Less:
Capitalized benefit plans cost	17	15	33	29
Total post-employment benefit plans service cost	(64)	(58)	(139)	(126)
DB pension
Disclosure of defined benefit plans [line items]
Current service cost	(55)	(48)	(109)	(96)
OPEBs
Disclosure of defined benefit plans [line items]
Current service cost	$ 0	$ 0	$ (1)	$ (1)

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Post-employee benefit plans - Interest Cost (Details) - CAD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Disclosure of net defined benefit liability (asset) [line items]
Total interest on post-employment benefit obligations	$ (11)	$ (15)	$ (23)	$ (31)
DB pension
Disclosure of net defined benefit liability (asset) [line items]
Total interest on post-employment benefit obligations	(2)	(5)	(5)	(10)
OPEBs
Disclosure of net defined benefit liability (asset) [line items]
Total interest on post-employment benefit obligations	$ (9)	$ (10)	$ (18)	$ (21)

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Post-employee benefit plans - Funded Status of Post-Employment Benefit Plans Cost (Details) - Plan deficit - CAD ($) $ in Millions	Jun. 30, 2020	Dec. 31, 2019
Disclosure of defined benefit plans [line items]
Present value of post-employment benefit obligations	$ (28,062)	$ (27,179)
Fair value of plan assets	26,867	25,850
Plan surplus (deficit)	(1,195)	(1,329)
FUNDED
Disclosure of defined benefit plans [line items]
Present value of post-employment benefit obligations	(25,790)	(24,961)
Fair value of plan assets	26,493	25,474
Plan surplus (deficit)	703	513
PARTIALLY FUNDED
Disclosure of defined benefit plans [line items]
Present value of post-employment benefit obligations	(1,964)	(1,918)
Fair value of plan assets	374	376
Plan surplus (deficit)	(1,590)	(1,542)
UNFUNDED
Disclosure of defined benefit plans [line items]
Present value of post-employment benefit obligations	(308)	(300)
Fair value of plan assets	0	0
Plan surplus (deficit)	$ (308)	$ (300)

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Post-employee benefit plans - Narrative (Details) - CAD ($) $ in Millions	3 Months Ended	6 Months Ended
	Jun. 30, 2020	Jun. 30, 2020	Mar. 31, 2020	Dec. 31, 2019	Jun. 30, 2019	Mar. 31, 2019	Dec. 31, 2018
Employee Benefits [Abstract]
Other comprehensive income, before tax, gains (losses)	$ (2,215)	$ 150
Post-employment benefit obligations	$ (4,673)	$ (1,057)
Discount rates	2.80%	2.80%	4.20%	3.10%	3.00%	3.30%	3.80%
Return on plan assets	$ 2,458	$ 1,207
Return on plan assets, percent	10.70%	6.50%

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Financial assets and liabilities - Financial Instruments Measured at Amortized Cost (Details) - Financial liabilities at amortised cost, category - CAD ($) $ in Millions	Jun. 30, 2020	Dec. 31, 2019
CRTC tangible benefits obligation
Disclosure of financial liabilities [line items]
CARRYING VALUE	$ 12	$ 29
FAIR VALUE	12	29
CRTC deferral account obligation
Disclosure of financial liabilities [line items]
CARRYING VALUE	82	82
FAIR VALUE	86	85
Debt securities and other debt
Disclosure of financial liabilities [line items]
CARRYING VALUE	21,517	18,653
FAIR VALUE	$ 25,068	$ 20,905

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Financial assets and liabilities - Financial Instruments Measured at Fair Value (Details) - CAD ($) $ in Millions	Jun. 30, 2020	Dec. 31, 2019
Disclosure of financial assets [line items]
Assets	$ 61,191	$ 60,146
Liabilities	$ (40,054)	$ (38,738)
Repurchase obligation of trust ownership percentage	9.00%	9.00%
Maple Leaf Sports & Entertainment Ltd. (MLSE) financial liability
Disclosure of financial assets [line items]
Liabilities	$ (138)	$ (135)
Maple Leaf Sports & Entertainment Ltd. (MLSE) financial liability | QUOTED PRICES IN ACTIVE MARKETS FOR IDENTICAL ASSETS (LEVEL 1)
Disclosure of financial assets [line items]
Liabilities	0	0
Maple Leaf Sports & Entertainment Ltd. (MLSE) financial liability | OBSERVABLE MARKET DATA (LEVEL 2)
Disclosure of financial assets [line items]
Liabilities	0	0
Maple Leaf Sports & Entertainment Ltd. (MLSE) financial liability | NON-OBSERVABLE MARKET INPUTS (LEVEL 3)
Disclosure of financial assets [line items]
Liabilities	(138)	(135)
Publicly-traded and privately-held investments
Disclosure of financial assets [line items]
Assets	122	129
Publicly-traded and privately-held investments | QUOTED PRICES IN ACTIVE MARKETS FOR IDENTICAL ASSETS (LEVEL 1)
Disclosure of financial assets [line items]
Assets	2	2
Publicly-traded and privately-held investments | OBSERVABLE MARKET DATA (LEVEL 2)
Disclosure of financial assets [line items]
Assets	0	0
Publicly-traded and privately-held investments | NON-OBSERVABLE MARKET INPUTS (LEVEL 3)
Disclosure of financial assets [line items]
Assets	120	127
Derivative financial instruments | Derivative financial instruments
Disclosure of financial assets [line items]
Net assets held for sale	522	165
Derivative financial instruments | Derivative financial instruments | QUOTED PRICES IN ACTIVE MARKETS FOR IDENTICAL ASSETS (LEVEL 1)
Disclosure of financial assets [line items]
Net assets held for sale	0	0
Derivative financial instruments | Derivative financial instruments | OBSERVABLE MARKET DATA (LEVEL 2)
Disclosure of financial assets [line items]
Net assets held for sale	522	165
Derivative financial instruments | Derivative financial instruments | NON-OBSERVABLE MARKET INPUTS (LEVEL 3)
Disclosure of financial assets [line items]
Net assets held for sale	0	0
Other | Other
Disclosure of financial assets [line items]
Net assets held for sale	91	71
Other | Other | QUOTED PRICES IN ACTIVE MARKETS FOR IDENTICAL ASSETS (LEVEL 1)
Disclosure of financial assets [line items]
Net assets held for sale	2	1
Other | Other | OBSERVABLE MARKET DATA (LEVEL 2)
Disclosure of financial assets [line items]
Net assets held for sale	147	128
Other | Other | NON-OBSERVABLE MARKET INPUTS (LEVEL 3)
Disclosure of financial assets [line items]
Net assets held for sale	$ (58)	$ (58)

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Financial assets and liabilities - Change in allowance for doubtful accounts (Details) - Trade receivables $ in Millions	6 Months Ended
	Jun. 30, 2020 CAD ($)
Disclosure of financial assets [line items]
Balance, January 1, 2020	$ (62)
Additions	(90)
Usage	48
Balance, June 30, 2020	$ (104)

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Financial assets and liabilities - Details on trade receivables not impaired (Details) - Trade receivables - CAD ($) $ in Millions	Jun. 30, 2020	Dec. 31, 2019
Disclosure of financial assets [line items]
Financial assets	$ 2,685	$ 2,919
Trade receivables not past due
Disclosure of financial assets [line items]
Financial assets	1,926	2,082
Trade receivables past due | Under 60 days
Disclosure of financial assets [line items]
Financial assets	395	541
Trade receivables past due | 60 to 120 days
Disclosure of financial assets [line items]
Financial assets	252	232
Trade receivables past due | Over 120 days
Disclosure of financial assets [line items]
Financial assets	$ 112	$ 64

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Financial assets and liabilities - Currency Exposures (Details) ₱ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2020 CAD ($)	Jun. 30, 2019 CAD ($)	Jun. 30, 2020 CAD ($)	Jun. 30, 2019 CAD ($)	Jun. 30, 2020 USD ($)	Jun. 30, 2020 PHP (₱)
Disclosure of detailed information about hedged items [line items]
Net gains (losses) on change in fair value of derivatives	$ (9,000,000)	$ 12,000,000	$ (37,000,000)	$ 112,000,000
Credit Facility
Disclosure of detailed information about hedged items [line items]
Principal amount	2,035,000,000		2,035,000,000		$ 1,450,000,000
Credit facilities	4,000,000,000		4,000,000,000
Financial instruments designated as hedging instruments, at fair value	2,035,000,000		2,035,000,000		$ 1,450,000,000
Currency risk
Disclosure of detailed information about hedged items [line items]
Net gains (losses) on change in fair value of derivatives	$ 30,000,000		$ 14,000,000
Percentage of possible change in risk variable	10.00%		10.00%		10.00%	10.00%
Reasonably possible change in 10% depreciation (appreciation) of the CAD dollar impact on other comprehensive income (loss)	$ 2,000,000		$ 2,000,000
Currency risk | 2020 | Cash flow | Commercial paper | AMOUNT TO RECEIVE
Disclosure of detailed information about hedged items [line items]
Principal amount					$ 200,000,000
Financial instruments designated as hedging instruments, at fair value					200,000,000
Currency risk | 2020 | Cash flow | Commercial paper | AMOUNT TO PAY
Disclosure of detailed information about hedged items [line items]
Principal amount	279,000,000		279,000,000
Financial instruments designated as hedging instruments, at fair value	279,000,000		279,000,000
Currency risk | 2020 | Cash flow | Credit Facility | AMOUNT TO RECEIVE
Disclosure of detailed information about hedged items [line items]
Principal amount					370,000,000
Financial instruments designated as hedging instruments, at fair value					370,000,000
Currency risk | 2020 | Cash flow | Credit Facility | AMOUNT TO PAY
Disclosure of detailed information about hedged items [line items]
Principal amount	480,000,000		480,000,000
Financial instruments designated as hedging instruments, at fair value	480,000,000		480,000,000
Currency risk | 2020 | Cash flow | Anticipated transactions | AMOUNT TO RECEIVE
Disclosure of detailed information about hedged items [line items]
Principal amount					588,000,000
Financial instruments designated as hedging instruments, at fair value					588,000,000
Currency risk | 2020 | Cash flow | Anticipated transactions | AMOUNT TO PAY
Disclosure of detailed information about hedged items [line items]
Principal amount	768,000,000		768,000,000
Financial instruments designated as hedging instruments, at fair value	768,000,000		768,000,000
Currency risk | 2020 | Economic | Anticipated transactions | AMOUNT TO RECEIVE
Disclosure of detailed information about hedged items [line items]
Principal amount					60,000,000
Financial instruments designated as hedging instruments, at fair value					60,000,000
Currency risk | 2020 | Economic | Anticipated transactions | AMOUNT TO PAY
Disclosure of detailed information about hedged items [line items]
Principal amount	81,000,000		81,000,000
Financial instruments designated as hedging instruments, at fair value	81,000,000		81,000,000
Currency risk | 2020 | Economic - put options | Economic | Anticipated transactions | AMOUNT TO RECEIVE
Disclosure of detailed information about hedged items [line items]
Principal amount					209,000,000
Financial instruments designated as hedging instruments, at fair value					209,000,000
Currency risk | 2020 | Economic - put options | Economic | Anticipated transactions | AMOUNT TO PAY
Disclosure of detailed information about hedged items [line items]
Principal amount	284,000,000		284,000,000
Financial instruments designated as hedging instruments, at fair value	284,000,000		284,000,000
Currency risk | 2020 | Economic - call options | Economic | Anticipated transactions | AMOUNT TO RECEIVE
Disclosure of detailed information about hedged items [line items]
Principal amount	87,000,000		87,000,000		149,000,000
Financial instruments designated as hedging instruments, at fair value	87,000,000		87,000,000		149,000,000
Currency risk | 2020 | Economic - call options | Economic | Anticipated transactions | AMOUNT TO PAY
Disclosure of detailed information about hedged items [line items]
Principal amount	201,000,000		201,000,000		60,000,000
Financial instruments designated as hedging instruments, at fair value	201,000,000		201,000,000		60,000,000
Currency risk | 2020, Hedge Two | Cash flow | Anticipated transactions | AMOUNT TO RECEIVE
Disclosure of detailed information about hedged items [line items]
Principal amount | ₱						₱ 1,012
Financial instruments designated as hedging instruments, at fair value | ₱						₱ 1,012
Currency risk | 2020, Hedge Two | Cash flow | Anticipated transactions | AMOUNT TO PAY
Disclosure of detailed information about hedged items [line items]
Principal amount	26,000,000		26,000,000
Financial instruments designated as hedging instruments, at fair value	26,000,000		26,000,000
Currency risk | 2021 | Cash flow | Anticipated transactions | AMOUNT TO RECEIVE
Disclosure of detailed information about hedged items [line items]
Principal amount					26,000,000
Financial instruments designated as hedging instruments, at fair value					26,000,000
Currency risk | 2021 | Cash flow | Anticipated transactions | AMOUNT TO PAY
Disclosure of detailed information about hedged items [line items]
Principal amount	36,000,000		36,000,000
Financial instruments designated as hedging instruments, at fair value	36,000,000		36,000,000
Currency risk | 2021 | Economic | Anticipated transactions | AMOUNT TO RECEIVE
Disclosure of detailed information about hedged items [line items]
Principal amount					120,000,000
Financial instruments designated as hedging instruments, at fair value					120,000,000
Currency risk | 2021 | Economic | Anticipated transactions | AMOUNT TO PAY
Disclosure of detailed information about hedged items [line items]
Principal amount	161,000,000		161,000,000
Financial instruments designated as hedging instruments, at fair value	161,000,000		161,000,000
Currency risk | 2021 | Economic - put options | Economic | Anticipated transactions | AMOUNT TO RECEIVE
Disclosure of detailed information about hedged items [line items]
Principal amount					214,000,000
Financial instruments designated as hedging instruments, at fair value					214,000,000
Currency risk | 2021 | Economic - put options | Economic | Anticipated transactions | AMOUNT TO PAY
Disclosure of detailed information about hedged items [line items]
Principal amount	284,000,000		284,000,000
Financial instruments designated as hedging instruments, at fair value	284,000,000		284,000,000
Currency risk | 2021 | Economic - call options | Economic | Anticipated transactions | AMOUNT TO RECEIVE
Disclosure of detailed information about hedged items [line items]
Principal amount	68,000,000		68,000,000		47,000,000
Financial instruments designated as hedging instruments, at fair value	68,000,000		68,000,000		47,000,000
Currency risk | 2021 | Economic - call options | Economic | Anticipated transactions | AMOUNT TO PAY
Disclosure of detailed information about hedged items [line items]
Principal amount	65,000,000		65,000,000		47,000,000
Financial instruments designated as hedging instruments, at fair value	65,000,000		65,000,000		47,000,000
Currency risk | Interest rate swap | Fair value hedge
Disclosure of detailed information about hedged items [line items]
Principal amount	2,039,000,000		2,039,000,000		1,453,000,000
Financial instruments designated as hedging instruments, at fair value	2,039,000,000		2,039,000,000		$ 1,453,000,000
Currency risk | Top of range
Disclosure of detailed information about hedged items [line items]
Reasonably possible change in risk variable impact on net earnings	1,000,000		1,000,000
Reasonably possible change in 10% depreciation (appreciation) of the CAD dollar impact on other comprehensive income (loss)	228,000,000		228,000,000
Currency risk | Bottom of range
Disclosure of detailed information about hedged items [line items]
Reasonably possible change in risk variable impact on net earnings	55,000,000		55,000,000
Interest rate risk
Disclosure of detailed information about hedged items [line items]
Net gains (losses) on change in fair value of derivatives	$ 3,000,000		$ 5,000,000
Percentage of possible change in risk variable	1.00%		1.00%		1.00%	1.00%
Interest rate risk | Top of range
Disclosure of detailed information about hedged items [line items]
Reasonably possible change in risk variable impact on net earnings	$ (31,000,000)		$ (31,000,000)
Interest rate risk | Bottom of range
Disclosure of detailed information about hedged items [line items]
Reasonably possible change in risk variable impact on net earnings	$ 38,000,000		$ 38,000,000

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Financial assets and liabilities - Interest Rate Exposures (Details) - CAD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019	Mar. 31, 2020	Dec. 31, 2019
Disclosure of detailed information about hedging instruments [line items]
Net gains (losses) on change in fair value of derivatives	$ (9)	$ 12	$ (37)	$ 112
Interest rate risk
Disclosure of detailed information about hedging instruments [line items]
Net gains (losses) on change in fair value of derivatives	$ 3		$ 5
Percentage of possible change in risk variable	1.00%		1.00%
Settlement of share-based compensation plans | Forward contract | Net asset value | Interest rate risk
Disclosure of detailed information about hedging instruments [line items]
Financial instruments designated as hedging instruments, at fair value	$ 5		$ 5
Preferred shares
Disclosure of detailed information about hedging instruments [line items]
Value of shares	$ 4,004		$ 4,004			$ 4,004
Preferred shares | Interest rate risk
Disclosure of detailed information about hedging instruments [line items]
Value of shares					$ 582

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Financial assets and liabilities - Equity Price Exposures (Details) - CAD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019	Dec. 31, 2019
Disclosure of detailed information about hedging instruments [line items]
Net gains (losses) on change in fair value of derivatives	$ (9)	$ 12	$ (37)	$ 112
Equity price risk
Disclosure of detailed information about hedging instruments [line items]
Net gains (losses) on change in fair value of derivatives	$ 9		$ 37
Percentage of possible change in risk variable	5.00%		5.00%
Reasonably possible change in risk variable impact on net earnings	$ 40		$ 40
Forward contract | Settlement of share-based compensation plans | Equity price risk | Net liability value
Disclosure of detailed information about hedging instruments [line items]
Financial instruments designated as hedging instruments, at fair value	$ 39		$ 39
Forward contract | Settlement of share-based compensation plans | Equity price risk | Net asset value
Disclosure of detailed information about hedging instruments [line items]
Financial instruments designated as hedging instruments, at fair value					$ 40

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Financial assets and liabilities - Commodity Price Exposure (Details) - CAD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Disclosure of detailed information about hedged items [line items]
Net gains (losses) on change in fair value of derivatives	$ (9)	$ 12	$ (37)	$ 112
Commodity price risk
Disclosure of detailed information about hedged items [line items]
Net gains (losses) on change in fair value of derivatives	$ 6		$ 2
Percentage of possible change in risk variable	25.00%		25.00%
Reasonably possible change in risk variable impact on net earnings	$ 4		$ 4
Settlement of share-based compensation plans | Fuel swaps | Commodity price risk | Net asset value
Disclosure of detailed information about hedged items [line items]
Financial instruments designated as hedging instruments, at fair value	$ 2		$ 2

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Share-based payments - Share-Based Payment Amounts Included in the Income Statements as Operating Costs (Details) - CAD ($) $ in Millions	3 Months Ended		6 Months Ended
	Jun. 30, 2020	Jun. 30, 2019	Jun. 30, 2020	Jun. 30, 2019
Disclosure of terms and conditions of share-based payment arrangement [line items]
Total share-based payments	$ (23)	$ (21)	$ (50)	$ (52)
Expense from share-based payment transactions in which goods or services received did not qualify for recognition as assets	23	21	50	52
ESP
Disclosure of terms and conditions of share-based payment arrangement [line items]
Total share-based payments	(8)	(8)	(16)	(15)
Expense from share-based payment transactions in which goods or services received did not qualify for recognition as assets	8	8	16	15
Restricted share units (RSUs) and performance share units (PSUs)
Disclosure of terms and conditions of share-based payment arrangement [line items]
Total share-based payments	(13)	(11)	(29)	(31)
Expense from share-based payment transactions in which goods or services received did not qualify for recognition as assets	13	11	29	31
Other
Disclosure of terms and conditions of share-based payment arrangement [line items]
Total share-based payments	(2)	(2)	(5)	(6)
Expense from share-based payment transactions in which goods or services received did not qualify for recognition as assets	$ 2	$ 2	$ 5	$ 6

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Share-based payments - ESP Activity (Details) - ESP	6 Months Ended
	Jun. 30, 2020 CAD ($) shares
Disclosure of terms and conditions of share-based payment arrangement [line items]
Unvested contributions, beginning of period (in shares)	1,124,198
Contributions (in shares)	316,202
Dividends credited (in shares)	29,520
Vested (in shares)	(274,732)
Forfeited (in shares)	(50,017)
Unvested contributions, end of period (in shares)	1,145,171
Weighted average fair value at measurement date, other equity instruments granted | $	$ 58

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Share-based payments - Outstanding RSUs/PSUs Activity (Details) - RSUs/PSUs	6 Months Ended
	Jun. 30, 2020 CAD ($) shares
Disclosure of terms and conditions of share-based payment arrangement [line items]
Outstanding, beginning of period (in shares)	2,915,118
Granted (in shares)	861,582
Dividends credited (in shares)	79,152
Settled (in shares)	(923,059)
Forfeited (in shares)	(21,307)
Outstanding, end of period (in shares)	2,911,486
Weighted average fair value at measurement date, other equity instruments granted | $	$ 63

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Share-based payments - Outstanding DSUs Activity (Details) - DSUs	6 Months Ended
	Jun. 30, 2020 CAD ($) shares
Disclosure of terms and conditions of share-based payment arrangement [line items]
Outstanding, beginning of period (in shares)	4,623,099
Issued (in shares)	62,996
Settlement of RSUs/PSUs (in shares)	90,435
Dividends credited (in shares)	128,403
Settled (in shares)	(595,189)
Outstanding, end of period (in shares)	4,309,744
Weighted average fair value at measurement date, other equity instruments granted | $	$ 62

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Share-based payments - Outstanding Stock Options (Details)	6 Months Ended
	Jun. 30, 2020 shares $ / shares	Jun. 30, 2020 shares $ / shares
NUMBER OF OPTIONS
Outstanding, beginning of period (in shares) | shares	12,825,541
Granted (in shares) | shares	3,410,150
Exercised (in shares) | shares	(419,546)
Forfeited (in shares) | shares	(41,845)
Outstanding, end of period (in shares) | shares	15,774,300
Exercisable, end of period (in shares) | shares		5,299,256
WEIGHTED AVERAGE EXERCISE PRICE ($)
Outstanding, beginning of period (CAD per share)	$ 57
Granted (CAD per share)	65
Exercised (CAD per share)	53
Forfeited (CAD per share)	60
Outstanding, end of period (CAD per share)	57	$ 59
Exercisable, end of period (CAD per share)		$ 58
Weighted average share price, share options exercised (CAD per share)	$ 64

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Share-based payments - Fair Value Assumptions (Details)	6 Months Ended
	Jun. 30, 2020 CAD ($) year $ / shares
Share-based Payment Arrangements [Abstract]
Weighted average fair value per option granted (CAD per share)	$ 1.55
Weighted average share price (CAD per share) | $ / shares	$ 63
Weighted average exercise price (CAD per share)	$ 65
Expected dividend growth	5.00%
Expected volatility	12.00%
Risk-free interest rate	1.00%
Expected life (years) | year	4

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Label	Element	Value
Increase (decrease) due to changes in accounting policy required by IFRSs [member]
Equity	ifrs-full_Equity	$ (20,000,000)
Non-controlling interests [member]
Equity	ifrs-full_Equity	325,000,000
Non-controlling interests [member] | Increase (decrease) due to changes in accounting policy required by IFRSs [member]
Equity	ifrs-full_Equity	(1,000,000)
Equity attributable to owners of parent [member]
Equity	ifrs-full_Equity	20,344,000,000
Equity attributable to owners of parent [member] | Increase (decrease) due to changes in accounting policy required by IFRSs [member]
Equity	ifrs-full_Equity	(19,000,000)
Share premium [member]
Equity	ifrs-full_Equity	1,170,000,000
Retained earnings [member]
Equity	ifrs-full_Equity	(4,956,000,000)
Retained earnings [member] | Increase (decrease) due to changes in accounting policy required by IFRSs [member]
Equity	ifrs-full_Equity	(19,000,000)
Accumulated other comprehensive income [member]
Equity	ifrs-full_Equity	90,000,000
Preference shares [member] | Issued capital [member]
Equity	ifrs-full_Equity	4,004,000,000
Ordinary shares [member] | Issued capital [member]
Equity	ifrs-full_Equity	$ 20,036,000,000