Slide 1: Q1 2025 Results Conference Call
Q1 2025 Results Conference Call May 8, 2025
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 2025 financial guidance (including revenue, adjusted EBITDA, capital intensity, adjusted EPS, free cash flow
Slide 3: Strategic priorities of our business
Strategic priorities of our business Revenue Growth Drivers 1 2 3 4 Build a Offer the Business Putting the Digital Best Technology Customer Media & Networks & Solutions First Content Services Leadership Powerhouse Business Transformation Laser-focused roadmap to create long-term shareholder value 3
Slide 4: Putting the customer first
Putting the customer first Making it easy for customers to do business with Bell 4
Slide 5: Offer the best networks and services
Offer the best networks and services (1) (2) Internet and wireless networks are the foundation of our business (1) Most awarded Internet based on Bell competitive analysis. Bell awards include Bell Pure Fibre ranked Canada's fastest Internet by Ookla in their Speedtest Awards for Q3-Q4 2024, and vot
Slide 6: Fibre-first strategy is foundation of BCE’s growth plan
Fibre-first strategy is foundation of BCE’s growth plan Fibre locations (M) FTTH subscribers(1) (M) FTTH market share(2) +18% +53% +110% 7.8+ 3.0 48% 41% 5.1 1.4 2019 Q1'25 2019 Q1'25 2019 Q1'25 Expanded fibre locations Doubled subscribers on Increased Internet market by 2.7M since 2019 FTTH network
Slide 7: U.S. fibre market is a significant new growth opportunity
U.S. fibre market is a significant new growth opportunity Average Homes with Fibre Regulated ARPU(1) Fibre Offering Penetration Wholesale? ~US$65 ~51% <30% No ~$70 ~75% ~45% Yes U.S. fibre market share gains to accelerate as more fibre is built Sources: Company reports; WCIS Market Analysis; S&P Kag
Slide 8: Ziply Fiber is a strong platform to capture fibre growth
Ziply Fiber is a strong platform to capture fibre growth Superior growth profile • Strong adjusted EBITDA growth Capital deployment • Low deployment cost of ~US$1,000 per fibre location efficiency High fibre coverage and • ~85% of retail Internet subscribers on fibre subscriber mix • Mature markets:
Slide 9: U.S fibre strategic partnership accelerates growth and enhances BCE free cash flow
U.S fibre strategic partnership accelerates growth and enhances BCE free cash flow • BCE & Ziply Fiber to retain existing business 100% at acquisition close, expansion within copper footprint, and retail operations in fibre footprint deployed by Network FiberCo • Existing operations at transaction c
Slide 10: Growing BCE’s position as a top fibre provider in N.A.
Growing BCE’s position as a top fibre provider in N.A. Pro forma fibre locations in Canada and U.S. (M) Up to 16M ~8 ~6 ~8 combined fibre locations ~2 ~0.5 ~1.5 ~ Network Total U.S. FiberCo Ziply Fiber acquisition and long-term partnership with PSP create a North American fibre broadband leader with
Slide 11: U.S. fibre assets enhance BCE shareholder value
U.S. fibre assets enhance BCE shareholder value Network FiberCo Unlocks ability to capture significant additional U.S. fibre footprint and associated financial opportunities Immediately improves Ziply Fiber revenue and adjusted EBITDA growth profiles Network FiberCo structure for Ziply Fiber growth
Slide 12: Business technology solutions leadership
Business technology solutions leadership • Launched new tech services division under “Ateko” brand, bringing together FX Innovation, CloudKettle and HGC Technologies • Ateko: a Systems Integrator / Managed Services Provider (MSP) practice focused on IT workflow automation and cybersecurity • Strateg
Slide 13: Build a digital media & content powerhouse
Build a digital media & content powerhouse Digital Drives Bell Media Momentum • 4th consecutive quarter of revenue and adjusted EBITDA growth 43% • – Revenue up 6.9% with 35.9% adjusted EBITDA growth Digital revenues(1) up 12% and now comprise Mix of total Bell Media 43% of Bell Media revenue, up fr
Slide 14: Incremental business transformation cost savings
Incremental business transformation cost savings Cost savings from transformation initiatives $500M $1.5B $500M $1B $500M 2022-2024 Original Incremental cost New target by savings target target by 2028 2028 Upsized goal: $1.5B in cost savings by 2028 14
Slide 15: Balanced capital allocation strategy
Balanced capital allocation strategy 1 2 3 Optimize the Invest for Growth Return Capital to Balance Sheet Shareholders • Accelerate deleveraging • Put the customer first • Sustainable dividend − Hybrid debt issuances paying company • Offer the best networks & − Cash tender offers services • Focus on
Slide 16: Balanced capital allocation strategy (cont’d)
Balanced capital allocation strategy (cont’d) • BCE annualized common dividend of $1.75 per share Substantial changes in economic – ~$1.6B in ongoing annualized cash dividend payments to and operating environments shareholders – Revised dividend level provides attractive yield of 6%(1) • Heightened
Slide 17: Financial & Operating Results
Financial & Operating Results
Slide 18: Consolidated financial results
Consolidated financial results ($M) except per share data Q1’25 Y/Y • Revenue down 1.3% y/y, driven by 7.4% decrease in low-margin product revenue Revenue 5,930 (1.3%) – ~$125M revenue decrease expected in 2025 due to Service 5,172 (0.4%) timing of The Source store closures in 2024 Product 758 (7.4%
Slide 19: Bell Communication & Technology Services
Bell Communication & Technology Services Q1 operating metrics Revenue ($M) • 9,515 total retail Internet net additions – 68% of EOP subscribers on fibre, up 6 pts • 9,598 mobile phone postpaid net losses -2.4% – 25k net additions on the main premium Bell brand 5,375 – Stable churn(1) rate of 1.21% 5
Slide 20: Bell Media
Bell Media Revenue ($M) Q1 operating metrics • Digital revenues 12% higher y/y +6.9% • 3.8M Crave subscribers, up 22% y/y 775 – DTC streaming subscribers up 57% 725 – Most streamed quarter in Crave history Q1 financials Q1'24 Q1'25 • 4th consecutive quarter of revenue and adjusted EBITDA growth • 6.
Slide 21: Balance sheet & liquidity update
Balance sheet & liquidity update • $4.7B total available liquidity at end of Q1 Available liquidity(1) • Net debt leverage ratio improved 0.3x since Q4 to ~3.6x adjusted EBITDA $4.7B – Hybrid debt offerings totalling $4.4B with 50% equity incl. $1,049M in cash treatment from credit rating agencies *
Slide 22: Financial targets for 2025
Financial targets for 2025 BCE 2025 guidance Revenue growth(1) (3%) to 1% Adjusted EBITDA growth(1) (2%) to 2% Capital intensity(2) ~14% Adjusted EPS growth(3) (13%) to (8%) Free cash flow growth(4) 11% to 19% Annualized common share dividend(5) $1.75 (1) For 2025, we expect wireless and broadband c
Slide 23: Appendix
Appendix Bell
Slide 24: 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 IFRS® Accounting Standards or GAAP while certain other measures do not have a standardized meaning under GAAP. We believe that our
Slide 25: Non-GAAP and other financial measures (cont’d)
Non-GAAP and other financial measures (cont’d) Non-GAAP financial measures (cont’d) Free cash flow and free cash flow after payment of lease liabilities(cont’d) We consider free cash flow and free cash flow after payment of lease liabilities to be important indicators of the financial strength and p
Slide 26: Non-GAAP and other financial measures (cont’d)
Non-GAAP and other financial measures (cont’d) Non-GAAP financial measures (cont’d) Adjusted net earnings The term adjusted net earnings does not have any standardized meaning under IFRS Accounting Standards. Therefore, it is unlikely to be comparable to similar measures presented by other issuers.
Slide 27: Non-GAAP and other financial measures (cont’d)
Non-GAAP and other financial measures (cont’d) Non-GAAP financial measures (cont’d) Net debt (cont’d) Net debt is calculated using several asset and liability categories from the statements of financial position. The most directly comparable IFRS financial measure under IFRS Accounting Standards is
Slide 28: Non-GAAP and other financial measures (cont’d)
Non-GAAP and other financial measures (cont’d) Total of segments measures A total of segments measure is a financial measure that is a subtotal or total of 2 or more reportable segments and is disclosed within the Notes to BCE’s consolidated primary financial statements. Adjusted EBITDA Adjusted EBI
Slide 29: Non-GAAP and other financial measures (cont’d)
Non-GAAP and other financial measures (cont’d) Capital management measures A capital management measure is a financial measure that is intended to enable a reader to evaluate our objectives, policies and processes for managing our capital and is disclosed within the Notes to BCE’s consolidated finan
Slide 30: Non-GAAP and other financial measures (cont’d)
Non-GAAP and other financial measures (cont’d) Non-GAAP ratio (cont’d) Adjusted EPS The term adjusted EPS does not have any standardized meaning under IFRS Accounting Standards. Therefore, it is unlikely to be comparable to similar measures presented by other issuers. We define adjusted EPS as adjus