IN TWENTY-TWENTY WE WERE AT THE OF CONNECTIONS WHEN IT MATTERED MOST. ANNUAL REPORT 2020 Advancing how Canadians connect with each other and the world OUR FINANCIAL PERFORMANCE Stepping up in a year like no other As the Bell team kept Canada connected in a challenging 2020, we built marketplace momentum with world-class network, service and content innovations for our customers while delivering sustainable dividend growth for our shareholders. 2020 financial performance Revenue * (3.8%) Adjusted EBITDA (1) * (4.0%) Capital intensity 18.4% Adjusted EPS (1) $3.02 Free cash flow (1) * (10.4%) * Compared to 2019 6.1 % +307% Dividend yield Total shareholder in 2020 (2) return 2009–2020 (3) +5.1 % +140% Increase in dividend Increase in dividend per common share per common share for 2021 2009–2021 (1) Adjusted EBITDA, adjusted EPS and free cash floware 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. For a full description of these measures, see section 10.2, Non-GAAP financial measures and key performance indicators (KPIs) on pp. 115 to 117 of the MD&A. (2) Annualized dividend per BCE common share divided by BCE’s share price at the end of the year. (3) The change in BCE’s common share price for a specified period plus BCE common share dividends reinvested, divided by BCE’s common share price at the beginning of the period. 2 | BCE INC. 2020 AnnuAL REPORT OUR PURPOSE Bell’s goal and Strategic Imperatives Our goal is to advance how Canadians connect with each other and the world, and the Bell team is executing a clear strategy that leverages our strengths and highlights the opportunities of the broadband economy for our company and all our stakeholders. 1 2 Build the best Drive growth networks with innovative services Continuing to enhance our key competitive Leveraging our leading networks advantage with a focus on delivering to provide truly differentiated the leading broadband fibre and wireless communications services to Canadians networks in locations large and small. and drive revenue growth. 3 4 Deliver the most Champion compelling content customer experience Taking a unified approach across our Making it easier for customers to media and distribution assets to d eliver the do business with Bell at every level, from content Canadians want the most. sales to installation to ongoing support. 5 6 Operate with agility Engage and invest and cost e fficiency in our people Underscoring a focus on operational Strengthening our leading workplace excellence and cost discipline throughout culture, recognizing that Bell’s success every part of our business. requires a dynamic and engaged team. BCE INC. 2020 AnnuAL REPORT | 3 FINANCIAL AND OPERATIONAL HIGHLIGHTS Connecting Canadians with the best in broadband communications With a consistent focus on customer experience, the Bell team rebounded from the impacts of the COVID-19 crisis to deliver consecutive quarterly operational improvement and growth in next-generation broadband services. Our high-performance network connections, innovative services and compelling content enabled Bell to achieve solid increases in retail Internet, IPTV and wireless subscribers while improving the rate of decline in legacy services like landline phone and satellite TV. Investing for future growth as we also play a key role in Canada’s economic recovery from COVID-19, Bell over-delivered on our fibre, wireless and rural network expansion objectives in 2020. BCE retail subscribers (millions) 2020 2019 Change Wireless 10.22 9.96 +2.6% High-speed Internet (1) 3.70 3.56 +4.2% Television (1) 2.74 2.77 (1.2%) Local residential 2.48 2.70 (7.9%) telephone services (1) (2) Total (1) 19.15 18.98 +0.9% 22.32M Total Bell consumer, business and wholesale customer connections (1) Excludes wholesale subscribers. (2) Excludes business telephone services. 4 | BCE INC. 2020 AnnuAL REPORT FINANCIAL AND OPERATIONAL HIGHLIGHTS Competing in a dynamic marketplace, investing in recovery and future growth Strong strategic execution enabled us to succeed in the uniquely challenging communications sector of 2020, achieving 96% of 2019 revenue and adjusted EBITDA while also accelerating our capital investment in network expansion and enhancement. Operating revenues ($ millions) Operating revenues by segment (%) 2020 (3.8%) 2020 2019 $22,883 10% 12% 52% 50% 2019 38% 38% $23,793 Bell Wireline Bell Wireless Bell Media Adjusted EBITDA Net earnings Adjusted net earnings (1) ($ millions) ($ millions) ($ millions) 2020 (4.0%) 2020 (17.0%) 2020 (12.5%) $9,607 $2,699 $2,730 2019 2019 2019 $10,006 $3,253 $3,119 Cash flows from operating activities Free cash flow Capital expenditures ($ millions) ($ millions) ($ millions) 2020 (2.6%) 2020 (10.4%) 2020 5.7% $7,754 $3,348 $4,202 2019 2019 2019 $7,958 $3,738 $3,974 (1) Adjusted net earnings 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. For a full description of this measure, see section 10.2, Non-GAAP financial measures and key performance indicators (KPIs)on pp. 115 to 117 of the MD&A. BCE INC. 2020 AnnuAL REPORT | 5 MESSAGE FROM THE CHAIR OF THE BOARD Building on our strengths to deliver now and into the future Bell has always stepped up for Canadians during difficult times in our country’s history, and 2020 was no exception. Rapidly adjusting to the unprecedented impacts of COVID-19, the BCE group of companies delivered the reliable connections and outstanding service that enabled the national response at every level. Core to that effort was accelerating investment in Bell network and service innovation, ensuring critical support now and building a long-range foundation for future growth. 2020 was a year unlike any other. For Canada’s leading communications company, the unprecedented increases in network usage and capacity demands, rigorous new health and safety requirements, and an uncertain economy required swift and agile action to ensure uninterrupted service for millions of customers while continuing to grow our business in a responsible and sustainable manner. I am immensely proud of the clear and direct way Bell’s management team has addressed the COVID-19 challenge, a crucial element in Canada’s overall response that has been widely acknowledged by our stakeholders. Throughout, Bell met the needs of a country facing crisis, providing customers with billing relief and complimentary services, increasing mental health funding, and donating 1.5 million protective masks and other supports for healthcare and frontline workers. At the same time, Bell continued to drive the evolution of Canada’s network infrastructure and next-generation communications services, increasing broadband deployments, especially in rural and other underserved areas, while also launching Canada’s fastest 5G wireless network in multiple centres. Determined to keep Canadians connected, informed and entertained, Bell continued to build momentum in an unpredictable and challenging environment, encouraged by government policies that support the investments required to ensure Canada remains a global leader in communications and the digital economy. Building a leadership position in ESG standards 2020 underscored how integral Bell is to how Canadians live and work. Since 1880, we have led the way in communications while setting a standard for excellence in how we deliver. Today, this means dedication to leadership in environmental, social and governance standards (ESG). Bell’s goal to advance how Canadians connect with each other and the world is the core of our commitment to all the stakeholders we serve, supported by our unparalleled investments in the country’s core network infrastructure, ongoing broadband service 6 | BCE INC. 2020 AnnuAL REPORT innovation, and adherence to the highest financial, operational We also generated $3.35 billion in free cash flow to enable Bell’s and data governance standards. I am pleased to note that unmatched network, service and content investments, as well as oversight of this purpose will be added to the Corporate returns to the shareholders who have invested in our strategy. Governance Committee’s responsibilities in 2021. BCE remains on a very sound financial footing, with $3.8 billion Bell networks and services help to enable a clean economy, in liquidity at the end of 2020, fully funded pension plans, with 5G wireless poised to be a major factor in helping and ready access to financial markets, with no significant debt multiple sectors reduce emissions. In 2020, Bell became the maturities until 2022. first communications company in North America to achieve As a result, BCE was proud to announce both an acceleration in ISO 50001 certification for our energy management system, capital investment of at least an additional $1 billion over the and we are proud to build on that leadership and announce next 2 years while also increasing our common share dividend our objective to achieve carbon neutral operations in 2025. 5.1% to $3.50 effective with the Q1 2021 payment on April 15, 2021. At the same time, Bell Let’s Talk is supporting mental health action This is the 13th consecutive year that BCE has increased the in communities throughout Canada. We accelerated the initiative dividend by 5% or more, and total shareholder return over that in 2020 with $5 million in additional funding to respond to the timeframe has been 307%. unique mental health challenges of COVID-19, and a new Bell Let’s Talk Diversity Fund to help address the impact of systemic racism Changes to your BCE Board on the mental health of Black, Indigenous and People of Colour Directors Barry Allen, Robert Brown and Paul Weiss will be retiring (BIPOC) communities.