Slide 1: Q1 2023 Results Conference Call
Q1 2023 Results Conference Call May 4, 2023
Slide 2: Safe harbour notice
Safe harbour notice Certain statements made in this presentation are forward-looking statements. These forward-looking statements include, but are not limited to, statements relating to BCE’s financial guidance (including revenues, adjusted EBITDA, capital intensity, adjusted EPS and free cash flow)
Slide 3: Q1 highlights & progress on strategic imperatives
Q1 highlights & progress on strategic imperatives • Q1 consolidated financial performance in line with plan Financial performance • Revenue up 3.5%; adjusted EBITDA(1) and net earnings down 1.8% and 15.6% respectively – Q1’22 included one-time retroactive subscriber revenue adjustment at Bell Media
Slide 4: Q1 highlights & progress on strategic imperatives (cont'd)
Q1 highlights & progress on strategic imperatives (cont’d) Broadband • Retail FTTH Internet net additions of 48K, up 24.2% y/y growth & • ~1.1 million, or 47% of total FTTH subscribers, on Gigabit+ speeds – Broadest Multi-Gig footprint with 3 Gbps+ symmetrical speeds available in over 5M locations r
Slide 5: Q1 highlights & progress on strategic imperatives (cont'd)
Q1 highlights & progress on strategic imperatives (cont’d) • Bell continues to lead national peers in CCTS performance improvement(1) Champion – 6% reduction in customer complaints; share of overall complaints down 16% y/y and 55% in past 5 years – Bell is only national service provider to experienc
Slide 6: Q1 operating metrics
Q1 operating metrics Wireless Wireline Media 43,289 27,274 2% Postpaid net adds Retail Internet net adds Total digital Up 26.5% y/y Up 4.8% y/y revenue(2) growth • Mobile phone gross adds up 18.2% • Retail gross adds up 27% y/y • ~70% of new activations on 1 Gig+ 44% 47,757 3.2M Postpaid subscribers
Slide 7: Financial Results
Financial Results Bell
Slide 8: Consolidated financial results
Consolidated financial results ($M) except per share data Q1’23 Y/Y • Revenue up 3.5% y/y on strong wireless and Internet growth and higher product sales Revenue 6,054 3.5% Service 5,222 0.9% • In line with plan, adjusted EBITDA down 1.8% Product 832 23.6% – Q1’22 result reflected favourable one-tim
Slide 9: Bell Communication & Technology Services
Bell Communication & Technology Services Revenue ($M) • Service revenue up 2.1%, driven by strong 10% residential Internet and 5.4% wireless growth +4.9% 5,367 • Improving business wireline results – Best quarterly service revenue performance since Q3’20 5,116 – Global data equipment shortages allev
Slide 10: Bell Media
Bell Media Revenue ($M) • Advertising revenue down 4.7% y/y – Softer overall TV and radio advertiser demand due to current unfavourable economic conditions – Continued out of home recovery -5.5% 825 780 • Subscriber revenue down 4.1% y/y – Q1’22 result reflected favourable one-time retroactive subsc
Slide 11: Balance sheet & liquidity update
Balance sheet & liquidity update Available liquidity(1) • ~$3.7B total available liquidity at end of Q1 ~$3.7B • Net debt leverage ratio at ~3.4x incl. $651M in cash *At March 31, 2023 – Lowest among national peers – $1.5B public debt offering in February 2023 – Weighted average annual after-tax cos
Slide 12: Financial targets for 2023
Financial targets for 2023 BCE 2022 2023E Q1 2023 Revenue growth 3.1% 1% to 5% 3.5% Adjusted EBITDA growth 3.1% 2% to 5% (1.8%) Capital intensity 21.2% 19% to 20% 17.9% Adjusted EPS growth(1) 5.0% (3%) to (7%) (4.5%) Free cash flow growth(2) 2.9% 2% to 10% (88.1%) Annual common share dividend(3) $3.
Slide 13: Appendix
Appendix Bell
Slide 14: Non-GAAP and other financial measures
Non-GAAP and other financial measures BCE uses various financial measures to assess its business performance. Certain of these measures are calculated in accordance with International Financial Reporting Standards (IFRS or GAAP) while certain other measures do not have a standardized meaning under G
Slide 15: Non-GAAP and other financial measures (cont'd)
Non-GAAP and other financial measures (cont’d) Non-GAAP financial measures (cont’d) Net debt Net debt is a non-GAAP financial measure and it does not have any standardized meaning under IFRS. Therefore, it is unlikely to be comparable to similar measures presented by other issuers. Refer to section