Slide 1: Q3 2021 Results Conference Call
Q3 2021 Results Conference Call November 4, 2021
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: Q3 highlights & progress on strategic imperatives
Q3 highlights & progress on strategic imperatives • Delivered strong 3.6% consolidated service revenue growth and 4.2% higher adjusted EBITDA(1) that contributed to y/y net earnings growth of 9.9% – Total BCE revenue at 98% and adjusted EBITDA at 99.6% of pre-COVID Q3’19 levels • 266,919 total mobil
Slide 4: Q3 highlights & progress on strategic imperatives (cont'd)
Q3 highlights & progress on strategic imperatives (cont’d) • Leading the way in 5G – Network quality: Bell’s 5G network performance ranked as Canada’s best and fastest(1) – Network capacity: significant 3.5 GHz mobile spectrum; 94% of all cell sites with direct fibre connections – Strategic & MEC pa
Slide 5: Q3 operating metrics
Q3 operating metrics Bell Wireless Bell Wireline Bell Media • 115k postpaid mobile phone net • Best quarterly retail Internet net • TV advertising revenue up 25% y/y adds, up 45.9% vs. Q3’20 and adds in 15 years 23.4% higher than Q3’19 – 66k total retail net adds, up 4.6% y/y • TSN and RDS #1 ranked
Slide 6: Financial Results
Financial Results Bell
Slide 7: Q3 financial review
Q3 financial review ($M) except per share data Q3’21 Y/Y • COVID recovery progressing steadily Revenue 5,836 0.8% • Positive service revenue and adjusted EBITDA Service 5,099 3.6% growth for all Bell operating segments in Q3 Product 737 (14.6%) – Strong service revenue growth of 3.6% – Adjusted EBIT
Slide 8: Wireless financials
Wireless financials Service revenue ($M) • Service revenue and adjusted EBITDA ahead of 2019 pre-pandemic levels +5.0% 1,654 • Service revenue up 5.0% y/y, reflecting focus on 1,575 higher-value mobile phone subscriber growth – Roaming recovery modest – Data overage revenue decline improved y/y Q3'2
Slide 9: Wireline financials
Wireline financials Revenue ($M) • Total service revenue growth positive in Q3 • Residential Internet revenue up 9% y/y -0.6% 3,032 3,015 • Product revenue down 21.5% • Business wireline results impacted by non- recurrence of COVID-related sales in Q3’20 Q3'20 Q3'21 – Conferencing and LD strong in Q
Slide 10: Media financials
Media financials Revenue ($M) • Higher y/y revenue across all media platforms – Radio and Out-of-Home market recovery suppressed by COVID 4th wave +14.5% – TV revenue tracking ahead of Q3’19 level 719 628 • Advertising revenue up 19% y/y – Strong advertiser demand for new fall TV season – Upside fro
Slide 11: Net earnings per common share & adjusted EPS
Net earnings per common share & adjusted EPS Net earnings per Adjusted EPS(1) common share (EPS) • Adjusted EBITDA main driver of y/y growth ($) ($) • EPS up 7.8% y/y +7.8% +3.8% – Non-cash equity derivative gain vs. loss in Q3’20 0.83 0.82 0.77 0.79 • Adjusted EPS 3.8% higher y/y Q3'20 Q3'21 Q3'20
Slide 12: Cash flows from operating activities & free cash flow
Cash flows from operating activities & free cash flow Cash flows from Free cash flow(1) operating activities • Adjusted EBITDA reflects return to pre-COVID Q3’19 level ($M) -15.9% ($M) 2,110 1,774 -44.8% • Interest paid higher y/y due to timing of debt service payments and higher outstanding debt 1,
Slide 13: Outlook
Outlook BCE Revenue growth 2% to 5% Adjusted EBITDA growth 2% to 5% Capital intensity 18% to 20% Adjusted EPS growth(1) 1% to 6% Free cash flow(2) $2,850M to $3,200M Annualized common dividend(3) $3.50 per share (1) Defined as net earnings attributable to common shareholders before severance, acquis