Slide 1: Q4 2024 Results & 2025 Financial Guidance Call
Q4 2024 Results & 2025 Financial Guidance Call February 6, 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 guidance (including revenue, adjusted EBITDA, capital intensity, adjusted EPS, free cash flow and annua
Slide 3: Executing on key priorities in 2024
Executing on key priorities in 2024 • Achieved all non-revenue and revised revenue guidance targets for 2024 • Highest annual adjusted EBITDA margin(1) in over 30 years at 43.4%, up 1.2 points y/y • Delivered positive wireless service revenue growth in most competitive market ever • All new net post
Slide 4: Strategic roadmap & key priorities for 2025
Strategic roadmap & key priorities for 2025 Revenue Growth Drivers 1 2 3 4 Build a Offer the Business Putting the Digital Best Technology Customer Media & Networks & Services First Content Services Leadership Powerhouse Business Transformation Responsible balance sheet management & capital allocatio
Slide 5: Putting the customer first
Putting the customer first We Keep We Make it Your Time One Bell Our Intuitively Matters Experience Promises Easy Make it easy to do business with Bell Customer-first approach that prioritizes customer needs 5
Slide 6: Revenue growth drivers
Revenue growth drivers • Continue to build, penetrate and provide bundled services where we have deployed fibre Offer the • Pending acquisition of Ziply Fiber is a fibre strategy accelerator Best Networks & • Maintain 5G mobile network leadership Services • Focus on loading high-value subscribers on
Slide 7: Business transformation
Business transformation • Transformation focused on automation and digital-first approach — making it easier for customers to do business with Bell • Realign cost structure to the lifecycle stages of our lines of business Low • Transformation initiatives include: Touch Low – Consolidating on a singl
Slide 8: Capital allocation strategy for 2025
Capital allocation strategy for 2025 • Capital allocation approach consistent and responsible, balancing growth and investment with a view to optimizing the balance sheet to drive long-term shareholder value • Focused on maintaining investment grade credit ratings for Bell’s senior debt and lowering
Slide 9: Financial & Operating Results
Financial & Operating Results
Slide 10: Consolidated financial results
Consolidated financial results ($M) except per share data Q4’24 Y/Y 2024 Y/Y Revenue 6,422 (0.8%) 24,409 (1.1%) Service 5,287 (1.1%) 21,073 (0.4%) Product 1,135 0.9% 3,336 (5.2%) Adjusted EBITDA(1) 2,605 1.5% 10,589 1.7% Margin 40.6% 0.9 pts 43.4% 1.2 pts Net earnings 505 16.1% 375 (83.9%) Statutory
Slide 11: Bell Communication & Technology Services
Bell Communication & Technology Services Q4 operating metrics Revenue ($M) • 56,550 mobile phone postpaid net additions (1.4%) – All net additions on the main Bell brand 21,926 – Churn rate of 1.66%, up 0.03 pts y/y: 4th consecutive quarter of improvement in the y/y rate of increase 21,619 (1.1%) •
Slide 12: Bell Media
Bell Media Revenue ($M) Q4 operating Metrics • Digital revenues 6% higher y/y +1.1% • 3.64M Crave subscribers, up 18% y/y 3,151 • TSN and RDS are leading sports networks(1) 3,117 +1.2% – TSN: #1 specialty TV channel overall – RDS: top non-news French specialty TV channel 822 832 • French-language en
Slide 13: 2025 financial outlook
2025 financial outlook Bell
Slide 14: Revenue and adjusted EBITDA outlook
Revenue and adjusted EBITDA outlook • Guidance ranges unaffected by pending Northwestel BCE revenue growth divestiture and exclude Ziply Fiber acquisition, which is expected to close in 2H’25 2024: (1.1%) • CTS impacted by competitive pricing flowthrough pressure from 2024 and lower y/y product reve
Slide 15: Adjusted EPS outlook
Adjusted EPS outlook Adjusted EPS ($) • Increased interest expense reflects higher average debt outstanding (5.3%) • Depreciation and amortization expense up y/y, due to ongoing but reduced investment in fibre (13%)-(8%) and mobile 5G 3.04 • Post-employment benefit plans service cost 2.65 relatively
Slide 16: Free cash flow outlook
Free cash flow outlook Free cash flow ($M) • Capex for 2025 currently budgeted at ~$3.4B or ~$500M lower y/y 11%-19% • Interest paid up y/y due to higher average debt outstanding (8.1%) • Severance paid elevated in 2025 at ~$300M given 3,200 workforce restructuring initiatives completed in 2,888 to
Slide 17: Manageable and efficient capex profile
Manageable and efficient capex profile Com Combined company (pro forma) • Standalone capex on a declining path given • Ziply Fiber at peak network investment over next few years ~16.5% efficiencies from Capital intensity ratio during transformation initiatives and • Low fibre deployment cost peak of
Slide 18: Balance sheet & liquidity position
Balance sheet & liquidity position • Total available liquidity of $4.5B going into 2025 Available liquidity(1) • DB pension plans solvency surplus at $3.7B – Solvency ratio remains comfortably above 105% $4.5B incl. $1,572M in cash • Focused on maintaining Bell’s long-term senior *At December 31, 20
Slide 19: Financial targets for 2025
Financial targets for 2025 BCE 2024 guidance 2024 results 2025 guidance Revenue growth(1) ~(1.5%) (1.1%) (3%) to 1% Adjusted EBITDA growth(1) 1.5% to 4.5% 1.7% (2%) to 2% Capital intensity(2) <16.5% 16.0% ~14% Adjusted EPS growth(3) (7%) to (2%) (5.3%) (13%) to (8%) Free cash flow growth(4) (11%) to
Slide 20: Appendix
Appendix Bell
Slide 21: Key financial assumptions for 2025
Key financial assumptions for 2025 BCE ($M except per share data) 2024 2025E Post-employment benefit plans service cost 208 ~205 Net return on post-employment benefit plans 66 ~100 Depreciation & amortization expense 5,041 ~5,100 to 5,150 Interest expense 1,713 ~1,775 to 1,825 Average effective tax
Slide 22: 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 23: 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 Adjusted net earnings 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
Slide 24: Non-GAAP and other financial measures (cont'd)
Non-GAAP and other financial measures (cont’d) Non-GAAP Financial Measures (cont’d) Available liquidity Available liquidity 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 issu
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 Free cash flow 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. We defin
Slide 26: Non-GAAP and other financial measures (cont'd)
Non-GAAP and other financial measures (cont’d) Non-GAAP Financial Measures (cont’d) 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
Slide 27: Non-GAAP and other financial measures (cont'd)
Non-GAAP and other financial measures (cont’d) Non-GAAP Ratios A non-GAAP ratio is a financial measure disclosed in the form of a ratio, fraction, percentage or similar representation and that has a non-GAAP financial measure as one or more of its components. Adjusted EPS Adjusted EPS is a non-GAAP
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