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. from the Board at our annual shareholder meeting this year, Our diverse national team is building an inclusive workplace, and I would like to thank them for their dedication and outstanding fostering innovation and creativity as we work to eliminate service to you and our great company over more than a decade. any systemic impediments to team members reaching their full I am also very pleased to announce the nominations of Jennifer Tory potential. We undertook meaningful actions to foster a more and Cornell Wright to your Board. diverse workplace in 2020, including new targets for BIPOC representation in Bell’s senior management team (25% by 2025) A renowned corporate strategist, Jennifer was Chief Administrative and graduate and student hiring (at least 40%), as well Officer for Royal Bank of Canada until her retirement in 2019, as forging new technology, education and employment previously RBC’s Group Head, Personal and Commercial Banking, partnerships to enable our diversity objectives. and serves as Chair of the Toronto International Film Festival and on the Board of the Sunnybrook Hospital Foundation. Cornell is BCE is also a member of the 30% Club and a signatory to the Catalyst Accord 2022, which aim to increase the proportion Chair of the Corporate Department at Torys LLP, previously of women serving on Canadian corporate boards to at least 30%. co-head of its Mergers & Acquisitions practice, and is Chair of the At our annual shareholders meeting, we expect to exceed National Ballet of Canada, a trustee of University Health Network, that objective. and Executive in Residence at the Rotman School of Management. Bell is consistently recognized as one of Canada’s Top Employers, As your Chair, and on behalf of every member of the BCE and in 2020 as one of the greenest, most family-friendly and Board of Directors, I thank our shareholders for your support best diversity employers in the country, and a top workplace for and confidence in our company. I trust that you share our young professionals. pride in BCE’s accomplishments over the course of 2020, and our excitement about the tremendous opportunities ahead. Solid financial performance in uncertain times Significant declines in commercial activity during COVID-19, including reduced spending by both consumers and businesses, significantly impacted BCE’s financial results throughout most of 2020. However, consistently strong strategic execution Gordon M. Nixon by the Bell team resulted in consecutive quarterly performance Chair of the Board improvements throughout the COVID crisis, including achieving BCE Inc. 96% of our 2019 revenue and adjusted EBITDA results in 2020.

BCE Inc. 2020 Annual Report | 7 MESSAGE FROM THE PRESIDENT AND CEO Driving Canada’s communications leadership in a fast-changing world

The strength of Bell’s broadband networks, service Bell also launched the country’s fastest 5G wireless network in more innovations and dedicated team were on full display than 150 centres, laying the groundwork for a generational change in connectivity possibilities for all Canadians. Building on our world-class in 2020 as we kept Canadians connected, informed 4G LTE network, which today reaches over 99% of Canadians, and entertained around the clock throughout COVID-19, Bell’s early 5G leadership means we’re well prepared to continue while also continuing to build our momentum in offering Canadians the best in broadband wireless into the future. a dynamic communications marketplace. Our leading investments in research and development continue By accelerating the country’s shift to next-generation to enable the rollout of innovative communications services, including new residential Internet and TV options; enhanced communications technologies, Bell is advancing how Bell Smart Home monitoring and control systems; and more Canadians connect with each other and the world. advanced connections for Canadian businesses of all sizes, The Bell team is guided by 6 Strategic Imperatives that highlight including the integrated 5G, cloud and IoT solutions that will our strengths while underscoring the opportunities for Bell to be key drivers of Canada’s growing digital economy. excel in a fast-changing and highly competitive communications Bell remains committed to delivering the most compelling content landscape: Build the best networks; drive growth with innovative across all platforms, and to seeking new opportunities for growth services; deliver the most compelling content; champion in a fast-changing media sector marked by changing consumer customer experience; operate with agility and cost efficiency; tastes, all-new ways for audiences to access content and and engage and invest in our people. growing competition from well-funded international competitors. This clear roadmap for success was fundamental to Bell’s solid We built on our position as Canada’s top TV provider in 2020 by financial and operating progress in a uniquely challenging 2020. launching new viewing platforms like Virgin TV and Bell Streamer, Supplemented by 3 key principles developed to guide our operations and continuing to grow our Crave customer base with the addition during the COVID crisis – keep Canadians connected and informed; of extensive French-language content. Recognizing the opportunity protect the health and safety of the public, our customers and to bring fresh choice and enhanced competition to the Québec team; and support our customers and communities – our strategy media market, Bell Media also launched the French-language was also core to our team’s outstanding response to the Noovo network, which joins our other premier media brands unprecedented impacts of COVID-19. including CTV, Canada’s #1 English-language TV network, and TSN and RDS, the top sports networks in the country. Building the networks of the future now The robustness of Bell’s network infrastructure during COVID-19, Champion customer experience further reinforced with continued investment in capacity and Network leadership combined with innovation in service coverage in response to unprecedented usage by consumers, delivery enabled our team to further enhance the Bell customer businesses, governments and emergency responders, was experience in 2020. We continued to unveil a broad array of new reflected in 99.99+% availability across our wireline and wireless support options, many accelerated by the unique challenges networks throughout the crisis. of COVID-19. Bell also exceeded our broadband network expansion In 2020, we launched appointment-based sales, customer objectives for the year, including a significant acceleration self-installations and our unique Move Valet service, while also of our service footprint in rural and remote communities. making significant investments in digital sales and support Our all-fibre connections reached approximately 5.6 million platforms. Today, more than half of all Bell customer transactions homes and businesses by the end of the year, and we accelerated are taking place online. our rural Wireless Home Internet (WHI) rollout in response to A strong indicator of the progress Bell is making in improving increased demand during COVID-19 to reach nearly half a million customer experience is the most recent annual report from households. That included expansion to rural Atlantic Canada, Canada’s Commission for Complaints for Telecom-television alongside an increase in WHI download/upload speeds to Services (CCTS). For the fifth consecutive year, Bell led all 50/10 megabits per second (Mbps). major competitors in significantly reducing the number of customer service complaints to the CCTS.

8 | BCE Inc. 2020 Annual Report Supporting our team With as many as 80% of our team members working from home during COVID-19, and those in our stores and other workplaces adhering to strict safety protocols and government restrictions, it has not been business as usual. In line with our COVID-19 operating principles, Bell provided our team with the tools necessary to adjust to changes in the way we work, and we enhanced support services with dedicated mental health and wellness resources, increased psychological care benefits, and mobile access to our Employee and Family Assistance Program, as well as online learning and collaboration resources. Consistently recognized as one of Canada’s top employers, Bell continues to adopt new best practices to empower our team and ensure we are as agile, efficient and productive as possible – including making significant strides in promoting diversity and inclusion in our workplaces and communities.

Accelerating our momentum We’re taking our commitment to lead the way in Canadian communications further still with an unprecedented acceleration in our capital spending of an additional $1 billion to $1.2 billion over the next 2 years to enhance our fibre, rural and 5G network rollout plans. A supplement to the approximately $4 billion in capital we typically invest in networks each year, the project is the largest of its kind in Bell’s history, and will bring fast fibre and WHI coverage to up to 400,000 more homes and businesses than originally planned while also doubling the national population coverage of Bell 5G. This investment plan is an excellent example of Bell’s focus on supporting Canada’s response to and recovery from COVID-19 as we also lay the groundwork for our country’s long-range leadership in next-generation communications.

T hank you Bell is a Canadian company with a celebrated past and a bright future, and the shareholders who have invested in our company’s vision have always been critical to making it all possible. On behalf of the entire Bell team, I thank you for your ongoing support as we move forward with our goal to advance how Canadians connect with each other and the world.

Mirko Bibic President and Chief Executive Officer BCE Inc. and Bell Canada

BCE Inc. 2020 Annual Report | 9 STRATEGIC IMPERATIVE 1 Build the best networks Driving the reach and capabilities of Canada’s critical communications infrastructure has been Bell’s mission since our company’s founding in 1880, and we continued to lead the way 140 years later with unparalleled investment in the world’s top broadband fibre and wireless technologies. Bell’s enduring commitment to build the best networks ensured the country had the communications foundation necessary to respond to the COVID-19 crisis, and that Canadians in urban, rural and remote locations alike will have the next-generation connections they need to thrive in a broadband digital economy.

Bell takes broadband network innovation to the next level Working with infrastructure suppliers Ericsson and Nokia, Bell with industry-leading investments in infrastructure, support launched mobile 5G service in multiple centres in summer 2020, systems and research and development (R&D). Our capital covering 26% of the national population by the end of the year. expenditures of $4.2 billion in 2020 reflected ongoing expansion Our 5G leadership was recognized by PCMag, which ranked Bell’s and enhancement of our fibre, rural Wireless Home Internet (WHI) network as the clear winner in its 2020 Fastest Mobile Networks and mobile 5G networks, increases in network capacity Canada report. After extensive testing, PCMag found Bell offered and redundancy investments to manage the unprecedented faster, more reliable connection speeds in more cities than any usage volumes driven by COVID-19, and the highest spending other Canadian carrier. Customers outside Bell’s 5G coverage on Canadian R&D in the communications industry. areas are seamlessly connected to our 4G LTE network, which offers coverage for more than 99% of the Canadian population. Bell’s wireless and wireline networks delivered 99.99+% availability throughout the COVID situation as usage volumes Our high-speed fibre rollouts continued in Canadian centres increased exponentially. Internet traffic increased up to 60% large and small in 2020. We announced an investment of during the day and 20% at night at the peak of the crisis, approximately $400 million to bring fibre links to homes WHI usage grew 40%, voice calling up to 200% at peak calling and businesses throughout Winnipeg, and a similar program times, and business conference calling as much as 250% to deliver fibre connections to more than 200,000 residences as stay at home measures took effect across the country. and commercial locations in Hamilton. And from Churchill, Manitoba, to Lakefield, Ontario and Val-David, Québec, to In response to increased demand during the COVID crisis, Bouctouche, New Brunswick, Souris, Prince Edward Island and Bell also accelerated the rollout of our rural WHI service, including Hantsport, Nova Scotia, and on to Fortune in Newfoundland to 137,000 more households by the end of April 2020. WHI is a and Labrador, Bell is also bringing broadband fibre connectivity revolutionary new broadband Internet service specifically to a broad range of smaller communities. designed to serve smaller and more remote communities, and in 2020 we increased Internet access speeds to 50/10 (50 Mbps ● With fast and downloads and 10 Mbps uploads) and began rolling out service reliable data speeds in the Atlantic provinces. WHI will ultimately reach approximately enabled by fibre 1 million rural and remote locations in 7 provinces, and we’ve interconnections, Bell’s 5G network was achieved almost 50% of this overall build plan so far. launched in 2020 in Now, to enable Canada’s ongoing recovery from the COVID crisis multiple Canadian centres, and coverage while ensuring our long-term leadership in global broadband is expected to double communications, Bell is implementing an ambitious program in 2021. to accelerate our network rollouts with $1 billion to $1.2 billion in additional capital investment in 2021 and 2022. An addition to Bell’s typical annual capital expenditures of approximately $4 billion, this bold investment plan will boost our combined fibre and rural WHI locations to approximately 6.9 million by the end of 2021 while doubling 5G network coverage. The project is expected to generate $2 billion in additional economic activity and create approximately 5,300 additional direct and indirect Canadian jobs.

10 | BCE Inc. 2020 Annual Report ● Accelerating fibre and rural broadband network investment will bring additional connections to centres large and small while supporting Canada’s economic recovery from COVID-19.

We also work with the federal and provincial governments In Canada’s North, Bell subsidiary Northwestel is expanding its fibre to bring fibre to areas that are especially difficult and costly connections to Hay River and Inuvik in the Northwest Territories, to reach. Bell fibre is coming to 32,000 more rural towns and with Inuvik becoming Bell’s first all-fibre community north of the farms as part of the Internet for Nova Scotia Initiative, and Arctic Circle. Northwestel is also bringing faster Internet to in PEI we are completing links to 9,400 additional households residents of Yukon and other communities in the Northwest in a partnership with the provincial and federal governments. Territories in partnership with the CRTC’s Broadband Fund. In Newfoundland and Labrador, Bell, the provincial government Bell worked with Société de transport de Montréal (STM) and and community organizations are bringing LTE wireless service industry partners to complete deployment of wireless service to 11 small and remote communities, many of which will have throughout the 68 stations and 71 kilometres of tunnels that make wireless access for the first time. up Montréal’s métro transit system, the largest indoor digital In Québec, Bell fibre is rolling out to more than 100 underserved network in Canada. communities through projects in partnership with the Québec Canada’s #1 investor in communications R&D, Bell launched new and federal governments and the new Régions branchées initiative. 5G research partnerships in 2020, including the creation of To help further accelerate broadband network innovation new 5G research centres at Western University and Université and access in Québec, Bell has simplified the process other de Sherbrooke to support innovations in IoT and smart service providers use to safely access our communications energy management. support structures. We also announced a Centre of Excellence to share technology best practices and offer dedicated technical support access to service providers.

BCE Inc. 2020 Annual Report | 11 STRATEGIC IMPERATIVE 2 Drive growth with innovative services Building the best networks enables Bell to provide the widest range of innovative and integrated communications services for consumers and business customers – fast home and mobile Internet access, industry-leading Wi-Fi and Smart Home products, and the next generation of remote work, security and cloud solutions for business customers of all kinds.

The critical role of dependable Internet service was highlighted throughout 2020 as millions of Canadians worked remotely and families sheltered at home during the COVID crisis, relying on Bell’s wireline and wireless services to stay connected, informed and entertained. With increasing usage of multiple Internet-enabled devices in the home, Bell continued to expand the availability of our Whole Home Wi-Fi product, including to Atlantic Canada. Integrating a Fibe Internet HomeHub modem, specialized pods and the Bell Wi-Fi app, Whole Home Wi-Fi enables customers to optimize their networks to provide the strongest signals and fastest speeds everywhere in the home. From a smartphone or tablet, customers can easily see who’s connected, set parental controls, and test speed and signal strength. Bell is Canada’s largest Internet service provider, and the ongoing expansion of our fibre connections is contributing to subscriber growth and increased customer satisfaction. Reflecting the high speed and low latency of our all-fibre network, PCMag named Virgin Mobile Home Internet as Canada’s best Internet service for gaming in 2020, with the highest scores ever awarded in the category. Bell Smart Home also grew its suite of home monitoring and security services, making it easier than ever for ● From affordable residential customers to protect their properties and Lucky Mobile prepaid manage multiple smart devices. A new self-monitored to Canada’s fastest 5G service, Bell wireless home automation solution lets customers link popular brands offer a full range smart products, like cameras, video doorbells and of mobile pricing and thermostats, with the Bell Smart Home app to control service options. their home systems from anywhere.

12 | BCE Inc. 2020 Annual Report ● Wireless Home Internet is bringing the benefits of Bell’s broadband home Internet services to Canadians in smaller towns and rural communities.

Driving Canada’s wireless leadership Business market momentum Bell has quickly become Canada’s 5G leader with a fast-growing Even as the COVID crisis heavily impacted every level of the network footprint offering “faster, more reliable connection business communications sector, Bell Business Markets speeds in more cities than any other Canadian carrier,” according continued to build its market momentum with timely innovation to PCMag, which notes that customers who switch to Bell 5G in advanced security, remote work support and enhanced “will see a big boost in network performance.” cloud opportunities. Bell played a key role in the launch of several next-generation BBM’s new Managed Cloud Security Gateway is providing mobile products in 2020, including the exclusive introduction of enterprise customers with advanced security solutions, including Apple Family Setup, which allows kids and older family members to protection from malware, phishing and other cyber threats. use Apple Watch even if they don’t have an iPhone, and the launch Partnering with BlackBerry, we delivered advanced mobile of Apple’s first 5G smartphones. Bell’s 5G device lineup includes security solutions to business and government customers the Apple iPhone 12 series, Samsung’s full roster of 5G smartphones, to support their remote work programs, and launched Google’s 5G Pixel series, LG Velvet 5G and Motorola Edge. Bell Virtual Office, an integrated suite of remote work solutions to enhance productivity, optimize costs and grow employee Offering a full range of mobile service and pricing options, engagement in remote environments. Bell continued to expand the reach of our Lucky Mobile prepaid wireless service to even more budget-conscious Canadians. With the sale of Bell data centres to Equinix in 2020, Bell also We renewed our ground-breaking prepaid SIM card distribution became the first Equinix Platinum Partner in Canada, offering our agreement with Dollarama and signed a new agreement with customers access to an unmatched worldwide network of data the Giant Tiger discount chain to make Lucky Mobile available and cloud centres to support their digital transformations. in more than 250 locations. We also partnered with Loblaws to Echoing the success of Whole Home Wi-Fi, we launched expand its PC mobile prepaid service in more than 840 store Total Business Wi-Fi to provide small business customers with locations across Canada. enhanced Wi-Fi coverage and easy network management.

BCE Inc. 2020 Annual Report | 13 STRATEGIC IMPERATIVE 3 Deliver the most compelling content Bell is Canada’s #1 multimedia company with the top TV, radio, digital and advertising brands in the country, leading-edge digital platforms like Crave, and TV services including Bell Fibe TV, Alt TV, Virgin TV and Satellite TV offering a full range of pricing and service options. Keeping Canada connected during COVID-19 included ensuring Canadians had full access to the most compelling news, sports, lifestyle and entertainment content across any platform they chose.

Bell Media is home to the biggest names in Canadian media, Bell Media is also Canada’s sports leader, with TSN the and our roster continues to grow. In 2020, we introduced Noovo, most-watched sports network in Canada in 2020 and RDS the exciting rebrand of our newly acquired French-language maintaining its leadership in French-language sports TV. conventional and digital TV services for the Québec media TSN and RDS broadcasts of the most recent IIHF World Junior marketplace. Noovo is bringing renewed investment to Championship won the biggest total audience for Canada’s hockey French-language content production and fresh choice for viewers, tradition since 2015 – including a 121% year-over-year increase in including the upcoming launch of Noovo Info news services. live streaming. Home to the most championship events, Canada’s sports networks also announced exclusive long-term rights CTV marked its 19th consecutive year as Canada’s top network, extensions with Formula 1 and Curling Canada. led by the #1 new CTV original drama Transplant and the top primetime drama and comedy programs in the country. Canada’s top radio broadcaster with 109 stations available As Canadians turned to the most trusted name in news, through our iHeartRadio platforms, Bell Media rebranded more CTV News continued its leadership with the top national stations as part of the national Pure Country and Virgin radio newscast, CTV National News with Lisa Laflamme, while networks, and launched contemporary radio brand MOVE Radio CTV News Channel, CP24 and BNN Bloomberg all achieved in 10 markets across Canada. Astral, our out-of-home advertising their highest annual viewership in at least the last 5 years. business, secured an exclusive agreement with the Québec City airport and with the Toronto Parking Authority to manage advertising faces at Bike Share Stations across the city, adding to its more than 50,000 advertising locations in key urban markets nationally.

● With significant investment in Canadian talent and production, Bell Media creates compelling English and French language content that is winning audiences across the country and internationally.

14 | BCE Inc. 2020 Annual Report N ew ways to access the best content Our established Crave platform continued to grow its reach, serving a total of 2.8 million customers by the end of 2020 and launching bilingual service with more than 7,500 hours of exclusive new French-language content, leading to a doubling of Crave streams in Québec in 2020. Crave launched its most successful original production ever, Canada’s Drag Race, and introduced exclusive HBO Max programming as part of our long-term licensing agreement with Warner Bros. Bell continues to develop new ways to watch, including the launch of Virgin TV, the app-based service that requires no set-top box; Bell Streamer, a powerful new Bell-operated Android TV device offering live and on-demand content; and CTV’s ad-supported all-in-one digital video platform offering access to live and on-demand CTV programming. ● With #1 CTV and the new Noovo network in Québec, Crave streaming and top specialty channels like sports network TSN, Reflecting our strategy to deliver the most compelling content Bell has the TV brands that Canadians watch the most. in the Canadian market and beyond, Bell Media original productions are also enjoying growing success in the United States. Crave’s comedy series Letterkenny has achieved widespread acclaim and CTV’s Transplant is airing on NBC, original comedy Jann is streaming on Hulu and reality series Holmes Family Effect has been picked up by Fox. Bell Media further enhanced its content creation and production resources in 2020 through a new partnership with Montréal’s Grandé Studios and significant expansion of sound stages and other facilities at Pinewood Toronto Studios. For the 2020–2021 broadcast year, Bell Media is working with nearly 50 production companies across the country to create hundreds of hours of original content in French and English. Bell Media and partners took home 57 awards at the 2020 Canadian Screen Awards, the most of any private broadcaster – including 5 awards for the Crave original film Song of Names – and collected 46 awards from the Radio Television Digital News Association, including awards for CTV News, W5 and TSN.

BCE Inc. 2020 Annual Report | 15 STRATEGIC IMPERATIVE 4 Champion customer experience Fully focused on delivering the best customer experience, the Bell team quickly adapted to confront the unique service challenges of COVID-19 while also accelerating the development of our next-generation support platforms, including increasingly popular digital sales and self-serve options. As Bell embraces new ways of working and invests in next-generation technology, we’re making it easier to do business with us at every level.

Providing the nation’s critical communications backbone, Bell’s Bell retail locations including The Source stores were revamped high-capacity networks delivered the reliable, round-the-clock with protective enhancements and access restrictions for team connections that consumers, businesses, governments and public and customer safety, and select locations remained open even health responders have needed to weather COVID-19. These in lockdown areas to provide essential repair and replacement high-quality fibre and wireless connections are also core to the services with in-store appointments. Thousands of Bell call centre Bell service advantage every day, supporting ongoing subscriber agents were equipped to work remotely and securely, and many growth and customer churn reduction in a competitive marketplace, team members in hard-hit parts of the business such as retail and enhancing our service responsiveness and cost efficiency. and media were redeployed to customer support roles. Building on these core service strengths were our Bell customer We continued to develop the specialized services for residential experience teams, who rapidly adjusted to the challenges and business customers that set Bell apart, including Move Valet, of COVID-19, operating with a strict focus on safety and finding to ensure the seamless transfer of Internet, TV and phone innovative new ways to deliver on our service imperative. services when customers move their residence, and Virtual Office from Bell Business Markets, providing corporate customers with Delivering essential installation and repair support to keep people new ways to connect and engage with their remote workforces. connected, Bell instituted new safety protocols for field technicians serving homes and businesses, and introduced innovations like remote-assisted self-install programs, which enable field techs to guide customers through service setups by phone or video from outside the premises.

● The Bell team adapted rapidly to the strict public health and safety changes necessary to continuing serving our customers while keeping everyone safe during COVID-19.

16 | BCE Inc. 2020 Annual Report L eadership in digital transactions ● More than half of Bell customer As more customers embrace digital platforms to buy transactions now take place online including services and manage their accounts, Bell is leading with our award-winning self-serve apps. the way with our increasingly popular online and app self-serve options. By the end of 2020, 54% of total Bell customer transactions were taking place online. MyBell.ca, MyBell app and our other branded self-serve platforms enable customers to easily view and pay bills, manage services or check usage, putting control in the customer’s hands while reducing call centre and field service volumes. In 2020, BEST CUSTOMER we added the Manage Your Appointment tool to MyBell, while Virgin Mobile’s My Account app was SERVICE IN CANADA, named Best Telecommunications Mobile Application of the Year at the 2020 Mobile Web Awards. FOUR YEARS IN A ROW.

Award-winning service Virgin Mobile Canada was also named #1 in customer care satisfaction by J.D. Power for the fourth year in a row, and the fifth time in the last 6 years. Virgin outperformed all other Canadian wireless providers in customer satisfaction with phone, in-store and online support, and the overall wireless purchase experience. And for the fifth straight year, Bell led service improvement among major communications providers in the annual report of the Commission for Complaints for Telecom-television Services (CCTS). ● J.D. Power once Complaint volumes declined by more than 35%, again ranked Virgin #1 in Customer Service Mobile Canada #1 in among wireless providers and Bell’s overall share was down 6 basis points in Canada. customer care across For J.D. Power 2020 award information, to 24% despite having the most customers by far visit jdpower.com/awards. phone, in-store and of all Canadian communications carriers. online support and VIRGINMOBILE.CA Bell also got top marks in a 2020 secret shopper overall customer experience. report from the Canadian Radio-television and Telecommunications Commission (CRTC), which found that Bell was the industry leader in providing clear and easy to understand information and recommending services that are right for a customer’s needs.

BCE Inc. 2020 Annual Report | 17 STRATEGIC IMPERATIVE 5 Operate with agility and cost efficiency In our fast-changing and highly competitive Canadian communications industry, the Bell team is always working to grow more nimble and efficient in all that we do. Every day, Canada’s largest communications company is finding new ways to simplify and enhance how we build networks, create compelling content and deliver top-notch service, streamlining our systems and reducing costs to enable long-term growth, innovation and a better customer experience.

Bell’s sharpened organizational responsiveness was key to our T he fibre advantage ability to adapt quickly to the challenges of COVID-19 as Bell is rebuilding Canada’s communications backbone with fast we equipped most of our team members to work from home, fibre connections, and we’re past the midway point of this historic found new ways to safely serve customers in our stores and program with links to approximately 5.6 million homes and in the field, and made timely investments in network capacity businesses completed by the end of 2020. Our unparalleled fibre and customer support to manage unprecedented growth footprint allows Bell to realize operational benefits including in usage volumes throughout the crisis. in subscriber growth and market share, customer retention, As Bell kept Canada fully connected in these uncertain times, and installation and repair costs. our seasoned team was able to accelerate our fibre and wireless Our secure and scalable fibre infrastructure now connects buildouts and deliver new service options despite the unique approximately 92% of our wireless network cell sites, enabling challenges of the year. Our proven 6 Strategic Imperatives Bell’s next-generation 5G wireless network with the unmatched combined with a collective commitment to agility, efficiency backhaul capacity to handle IoT, Smart City and other enhanced and proactive industry leadership enabled us to succeed in digital opportunities, as well as our Wireless Home Internet (WHI) the dynamic communications marketplace of 2020. service for rural Canada. Bell’s ambitious plan to accelerate our fibre, rural and 5G rollouts A Canadian leader in sustainability with an additional $1 billion to $1.2 billion in capital investment over Bell is the first the next 2 years will further drive these competitive efficiencies. telecommunications Funded in part by the sale of Bell data centres to Equinix in 2020, company in North the program also leverages the federal capital cost allowance America to achieve the program that results in cash tax savings that can be reinvested internationally recognized ISO 50001 standard in further infrastructure development. awarded for our energy management system, further underscoring our position as one of Canada’s greenest employers and positioning us for sustainable operational efficiencies for years to come. Fuel and energy savings from fleet modernization, electric vehicle charging stations, lighting and heating system optimization, renewable energy use, and enhanced leveraging of cloud and virtual conferencing services all contributed to reductions in our environmental impact and operational costs.

18 | BCE Inc. 2020 Annual Report ● Bell’s ability to invest and compete is underpinned by our team’s proven commitment to operational excellence and agility in making the most of our scale and resources.

Simplifying how we do business Bell is dedicated to delivering a positive customer experience at every level, and to leveraging new technologies and innovative approaches to achieve our objective more cost-effectively. In 2020, this focus helped grow customer satisfaction and reduce churn as well as decrease our overall operating costs. Our easy-to-use digital tools that enable customers to self-manage a variety of straightforward service and account options are reducing call volumes and freeing call centre and online agents to manage more complex service issues. During COVID-19, this focus on empowering the customer extended to the launch of new assisted self-installation and repair options for many As we re-engineered our operations to ensure we continued to of our popular residential products, alongside new specialized deliver for Canadians throughout the challenges of COVID-19, service programs like Move Valet, with dedicated teams of we also reduced our total operating costs by 3.7% in 2020. cross-functional representatives ensuring the seamless transfer It’s a reflection of our team’s strict focus on cost management: of Bell Internet, TV and phone services when customers move. leveraging the efficiency of fibre and other new technologies; At Bell Media, we’re bringing a renewed focus to customer minimizing discretionary expenses at all levels; finding synergies experience to confront the rapid changes in the Canadian media across our business, including the rapid redeployment of team sector, investing in content creation and new technologies as members to new roles during COVID; and renegotiating contracts we also develop new ways to make Canada’s top media provider with a wide range of suppliers. more accessible to all our stakeholders. Bell Media and Thriving in today’s communications marketplace requires an Environics Analytics (EA), one of Canada’s leading data and unprecedented focus on operational excellence, and Bell is analytics companies, are also working together to open up new delivering with disciplined cost management and the operational opportunities for advanced media advertising strategies while innovation necessary to advance how Canadians connect further enhancing content apps and other delivery platforms. with each other and the world. A strong financial foundation BCE’s solid financial position, including significant liquidity, a strong balance sheet and fully funded pension plans, underpins Bell’s ability to invest and compete in an evolving communications sector. We’re dedicated to making the most of our scale and resources by ensuring operational excellence across our business, reducing our costs, supporting new investment and driving a strong marketplace performance.

BCE Inc. 2020 Annual Report | 19 STRATEGIC IMPERATIVE 6 Engage and invest in our people Essential to our goal to advance how Canadians connect with each other and the world, the Bell team is more than 50,000 strong, working in centres large and small in every province and territory to serve our customers and communities. When faced with the challenges of the global health crisis, the Bell team responded with dedication, agility and innovation to keep our customers safe and connected while also delivering on our strategy in the marketplace.

Consistently recognized as a top Canadian employer, Bell is This commitment was reflected in our rapid response to the committed to ensuring everyone on #TeamBell can reach demands of the COVID crisis. We developed clear operating their full potential, providing our team members with the tools principles and strict safety measures for our team and customers and resources they need to deliver for our customers and aligned with the most current public health protocols; implemented other stakeholders, supporting their career development, technology support and revamped processes to enable flexible and fostering their well-being, including with consistent and remote work; made timely enhancements to benefits leadership in workplace mental health. and health resources, including virtual online medical and mental wellness consultations; and put in place a wide range of operational innovations to protect our team and the public at retail stores and other Bell workplaces, and in the field at customer homes and business locations.

A diverse and inclusive workplace As Canada faced off against COVID-19, we also saw our society step up the fight against systemic racism in our communities and workplaces. In response, Bell accelerated our work to create an inclusive, equitable and accessible workplace, building new partnerships and making new commitments for action. Bell partnered with the Onyx Initiative to help bridge the gap in the recruitment of Black college and university students at Bell and across corporate Canada, and teamed up with the Black Professionals in Tech Network, Ascend Canada and Indigenous Works to further drive hiring and promotion of Black, Indigenous and People of Colour (BIPOC) talent. As Canada’s #1 multimedia provider, Bell also launched a Content Diversity Task Force to enhance the representation of diverse voices in programming and decision-making, which included a ● Consistently ranked as a top Bell Media partnership with BIPOC TV & Film to enhance career Canadian employer, Bell offers development and grow employment through the new HireBIPOC a diverse and inclusive workplace website. Bell Let’s Talk also stepped up with a special $5 million focused on enabling all team Diversity Fund and a new advisory committee to support the members to reach their full potential. mental health of racialized Canadians in communities nationwide.

20 | BCE Inc. 2020 Annual Report Building a talent advantage To underline our resolve for positive change, Bell set new targets for BIPOC representation in senior management of at least 25% by 2025, as well as student and graduate hiring of at least 40%. And to build a better understanding of unconscious bias and other impacts on our team members, Bell has worked with our external partners and employee networks like Black Professionals at Bell to educate team members on the issues with events and resources, and created the Inclusive Leadership Development Program completed by more than 1,500 team leaders across Bell.

Recruitment and career development went online in 2020, shifting ● During COVID-19, Bell supported team to virtual campus visits and recruiting drives that contributed members with a strict focus on health and to over 1 million social media impressions (up 73%) and more than safety, redeployment opportunities 35,000 total applicants (up 114%), including more interest and innovative remote work solutions. from BIPOC candidates. Virtual onboarding and career programs included the introduction of Bell U, an in-house continuous learning program focused on critical skills development in a range of technology-focused roles, and external initiatives with universities like Western and Sherbrooke to develop the next-generation of 5G and cybersecurity professionals. Over 1,200 graduate and other students joined the company last year through our recruitment initiatives, including our award-winning Graduate Leadership Program that offers unparalleled work, networking and mentoring opportunities at Bell. Our virtual career development and learning programs tripled in interest in 2020 with more than 1.7 million online video courses completed and over 77,000 hours of self-directed learning provided by the Bell team. Bell was again named a top employer for young people and one of Canada’s best diversity employers in 2020, alongside honours as an outstanding place to work both nationally and in our headquarters city of Montréal; as one of Canada’s greenest employers; and as a top family-friendly company.

BCE Inc. 2020 Annual Report | 21 CORPORATE RESPONSIBILITY 2020 environmental, social and governance highlights Bell’s ESG approach balances economic growth, social responsibility, and environmental performance. Focused on our goal of advancing how Canadians connect with each other and the world, Bell provides millions of Canadian consumers and businesses with leading communications networks, services and media content, creates value for shareholders, provides meaningful careers for people nationwide, and makes a significant overall contribution to Canada’s social and economic prosperity.

The topics Bell reports on reflect the intersection of our company’s Diversity and inclusion value chain, current and emerging sustainability trends and At Bell, we are proud of our commitment to foster an inclusive, stakeholder interests and their potential impacts on our business: equitable and accessible workplace where all team members Climate change and customers feel valued, respected and supported. We are dedicated to building a workforce that reflects the diversity of Bell is taking action to help address climate change and adapt the communities we serve, with a commitment to ensuring every to its consequences. Our efforts to mitigate climate change team member has the opportunity to reach their full potential. start with energy consumption as we strive to both save energy and reduce associated greenhouse gas (GHG) emissions. Key target: Among other targets, we are increasing electricity efficiency At least 35% women in executive positions at Bell facilities, reducing the fuel consumption of our (vice president level and above) by the end of 2021 vehicles and boosting the use of renewable energy.

• Key metrics 40 Target Bell’s objective is to achieve carbon neutral operations starting in % % % 2025, with an interim 2021 target to reduce the ratio of operational 30 % GHG emissions to our network usage by 40% from 2019 levels. 20

Key target: 10 Reduce the ratio of our operational GHG emissions to our network usage by 40% by 2021 vs. 2019 0 Actual 2018 2019 2020 30 

25 Key target: Target 20  30% women non-executive directors on the  BCE Board by the end of 2021 15

- % 40 (petabytes) 10 -% % (3) Target 30 % % % (2) 5 % divided by network usage 20

Operational emissions (1) (tonnes) 0 2019 2020 2021 10

0 • Key achievements 2018 2019 2020 2021 In 2020, Bell’s Energy Management System received ISO 50001 Director certification, a first for North American telecommunications nominees companies. We also surpassed our GHG reduction target for the year, reducing the ratio of our operational emissions to our network usage by 34% from 2019 levels.

(1) Operational emissions include scope 1, GHG emissions from sources owned or controlled by Bell, and scope 2, GHG emissions associated with the consumption of purchased electricity, heat, steam and cooling. (2) The variation from 2019 to 2020 is the result of appointments made to the BCE Board during 2020 in anticipation of the retirements of 3 directors at the 2021 annual shareholder meeting. (3) Based on director nominees for election at the 2021 annual shareholder meeting.

22 | BCE Inc. 2020 Annual Report ● With strict focus on the protection of customer information, data governance is a key factor in all of our business decisions.

• Key metrics A member of the 30% Club and a signatory to the Catalyst Accord 2022, Bell is committed to achieving the Accord’s objective of women representing at least 30% of non-executive directors on the BCE Board by 2022, and to women representing at least 35% of Bell leaders at the VP level and above by the end of 2021. In 2020, Bell updated its 2025 targets for Black, Indigenous and People of Colour (BIPOC) representation in Bell senior management to at least 25% and in student and graduate hiring to at least 40%. • Key achievements Women represent 36% of the BCE Board non-executive directors based on director nominees for election at BCE’s 2021 annual shareholder meeting, exceeding our 30% objective. Women currently represent 32% of Bell leaders at the VP level and above. Our support for gender equity in the workplace has been recognized with Gold Parity Certification for the third year P rivacy and information security in a row by Women in Governance. Our customers, team members and investors expect us to Bell was again recognized as one of Canada’s Best Diversity demonstrate that we collect data appropriately, use it Employers in 2020. To further accelerate diversity and inclusion for purposes that advance their interests, and keep it secure. on our team, Bell partnered with the Onyx Initiative, which Our approach to data governance encompasses the protection brings together major companies and academic institutions to and appropriate use of data across its lifecycle, and we support professional development and recruiting opportunities incorporate data governance proactively as a core consideration for Black post-secondary students and graduates. We also in all our business initiatives and technology decisions. teamed up with the Black Professionals in Tech Network, Ascend Canada and Indigenous Works to drive progress in • Key metrics hiring and promotion for BIPOC talent in Canadian telecom In 2021, Bell plans to develop and deploy enhanced data and tech, and joined with BIPOC TV & Film to launch governance training and complete the rollout of new HireBIPOC to connect creators and crew with opportunities BeCyberSavvy Information Security training to all applicable in Canadian media. team members across the company. • Key achievements The BCE Board adopted an enhanced data governance policy in 2020, bringing together multiple existing policies and programs in the interrelated areas of privacy, information security, data access management and records management. To learn more about our ESG approach and our reporting, please visit BCE.ca/Responsibility.

BCE Inc. 2020 Annual Report | 23 COMMUNITY INVESTMENT Bell Let’s Talk accelerates investment in Canadian mental health 11th annual Bell Let’s Talk Day goes virtual across the country and around the world The stress and uncertainty of the COVID-19 situation, alongside heightened attention to the impacts of systemic racism, meant significantly increased need for mental health supports in 2020. Bell Let’s Talk responded with new funding and action to help meet the challenge.

DOSSIER CLIENT C AMPAGNE VERSION STUDI O/CONSEIL 500761 Bell Let’s Talk 2021 V1 FS / ML PROJET FO RMAT F O R M AT INFOGRAPHIQUERATIOL IVRAISON COULEUR RÉVISION Panneau 20 x 10 20’ x 10’ 20” x 10” 1/12 Décembre 4C 0 In March, Bell Let’s Talk began working with national partners providing front-line mental health-care to identify ways to provide additional support quickly and effectively, especially to young people and families. A key Now more focus was the need for enhanced virtual access to care. than ever. Bell Let’s Talk put in place an emergency $5 million fund in response to COVID-19 demands, enabling new and expanded mental health programs from the Canadian Mental Health Association, Canadian Red Cross, Kids Help Phone, Revivre and Strongest Families Institute.

As Canada also confronted the urgent need to address January 28 systemic racism in our society, increasing access to

culturally informed mental health services for Canadians BELL_500761_LetsTalk_20x10_options.indd 1 2020-12-08 8:19 AM from BIPOC communities became an important part of the The crises of 2020 reinforced the need to address mental illness Bell Let’s Talk response in 2020. in new ways, as well as the important role all Canadians can play in putting the focus on mental health. This was underscored by Bell launched a new $5 million Bell Let’s Talk Diversity Fund, the theme of our 2021 Bell Let’s Talk Day campaign: When it comes working with expert advisors and partners from within BIPOC to mental health, now more than ever, every action counts. communities to identify new opportunities to support the mental health needs of racialized Canadians. To date, the fund Every Bell Let’s Talk Day, Bell donates 5 cents to mental health has distributed $1.5 million to 10 groups, including initial programs for every eligible call, text and social media message grants to Black Youth Helpline and the National Association of support for action in mental health, at no cost to participants of Friendship Centres. other than what they may normally pay their service provider for phone, text or Internet access. On our most recent Bell Let’s Talk ● To address the Day, Canadians and people around the world set all-new records mental health impacts Every of the COVID-19 crisis, for engagement in the mental health conversation, sharing we increased 159,173,435 messages of support. action January 28 Bell Let’s Talk funding counts. to support groups The additional $7,958,671.75 generated by the messaging total delivering emergency brought Bell’s overall funding commitment to $121,373,806.75, care and support well on the way to our objective of at least $155 million in 2025. for kids and families. Despite restrictions imposed by COVID-19, Canadians found new ways to take part in Bell Let’s Talk Day in 2021. Virtual events enabled people from every corner of the country to join together and share messages of support and ideas for action, including more than 200 universities and colleges that took part in the Bell Let’s Talk Campus Campaign. Many communities and partner organizations across the country took part in Bell Let’s Talk flag raisings to show their support for the mental health message. More than 160 flags were raised by cities, towns and legislative assemblies; universities and colleges; hospitals and other public facilities; and by the Canadian Armed Forces, including at CFS Alert near the North Pole, by soldiers overseas in Latvia, and sailors onboard HMCS Halifax in the North Sea. BELL_500761_LetsTalk_47x68.indd 3 2020-12-10 2:20 PM

24 | BCE Inc. 2020 Annual Report ● Millions of Every action counts all year round Michael Bublé @MichaelBuble people in Canada Bell Let’s Talk is active year round funding and around the Today is Bell Let’s Talk Day and simply watching this video organizations in every province and territory that helps support mental health. For every view of the official Bell world took action are working to reduce stigma, improving access Let’s Talk Day video and every tweet and retweet using and helped #BellLetsTalk, Bell will donate 5¢ to Canadian mental health spread the to mental health care and undertaking critical initiatives. Join the conversation. mental health research. Bell has partnered with more than message on Bell Let's Talk @Bell_LetsTalk 1,100 hospitals, universities, national associations Today, every view of this video helps create positive change. All you Bell Let’s Talk Day, and local community service providers since 2010. need to do is watch it and Bell will donate 5¢ more to Canadian mental setting all-new health initiatives. Retweet to help spread the word! #BellLetsTalk records for This year, Bell Let’s Talk announced almost $7 million engagement. in funding for new mental health projects: • Following the release of the National Standard of Canada for Mental Health and Well-Being for Post-Secondary Students (itself funded in part by Bell), we launched the $2.5 million Bell Let’s Talk Post-Secondary Fund to support

Canadian colleges and universities in ound mental health. By retweeting #BellLetsTalk you can make a difference. In case that’s not enough, before Disney bought Fox, Deadpool 3 was gonna be a road trip between Deadpool and Logan. Rashomon style. For real.

— Ryan Reynolds (@VancityReynolds) January 28, 2021 implementing the Standard. 10:40 PM · Jan 27, 2021

Ryan Reynolds 1.8K 1.6K Share this Tweet • A $500,000 donation to Jack.org will further @VancityReynolds support youth mental health by expanding the It’s critical to have open, honest and healthy discussions reach of Jack Chapters around the country. around mental health. By retweeting #BellLetsTalk you can make a difference. In case that’s not enough, before Disney • A $2 million donation, matched by the bought Fox, Deadpool 3 was gonna be a road trip between Deadpool and Logan. Rashomon style. For real. Government of Canada, to the Brain Canada 2:50 PM · Jan 28, 2021 Foundation for the Bell Let’s Talk-Brain Canada Celine Dion 46.7K 13.9K Share this Tweet @celinedion Mental Health Research Program will accelerate Now more than ever, taking care of our #mentalhealth is so brain research in the wake of COVID-19. very important. Let's all join the conversation & make positive • Halifax’s QEII Foundation will use $420,000 from changes to help those who are struggling. Help is out there if you need it, please reach out. – Celine xx… #BellLetsTalk Bell Let’s Talk to support new repetitive 8:59 AM · Jan 28, 2021 Transcranial Magnetic Stimulation (rTMS) clinics at the Nova Scotia Hospital and Valley 1.8K 1.6K Share this Tweet Regional Hospital. • Montréal’s CHU Sainte-Justine Foundation received $300,000 to support an ambulatory care program for teenage patients being treated for eating disorders. Please visit Bell.ca/LetsTalk to learn more about how Bell is supporting Canadian mental health every day of the year.

BCE Inc. 2020 Annual Report | 25 BELL ARCHIVES Bell stepped up for Canadians during pandemics of the past Since our beginning in 1880, Bell has supported Canadians in good times and bad with reliable connections, dedicated service and support for our communities. The Bell team’s outstanding response to the COVID-19 crisis has powerful echoes in Canada’s experience with pandemics of the past.

Just 5 years after Bell was founded in the city, Montréal was at the centre of the last uncontrolled outbreak of smallpox in North America. As with COVID-19, people were warned to protect themselves by avoiding gatherings, and Bell employees were required to follow strict safety precautions. The company also ordered vaccinations for all employees in the city. While the 1885 smallpox outbreak was largely confined to Montréal, the influenza pandemic that followed in 1918 was a global crisis that reached every corner of Canada. Similar to the huge increases in Internet, phone, business communications and other Bell services during COVID-19, Bell’s network traffic surged during the 1918 flu outbreak as Canadians were forced to isolate in their homes and began using their landline phone services at unprecedented levels. The Bell team itself was hit hard by influenza, with as many as 25% of employees absent in larger worksites at times. In smaller centres, the impact was often even worse: Joseph Gagnier, a Plant Chief in Trois-Rivières, reported he had only 2 workers ● Bell took out newspaper ads asking customers to limit available after 8 others became ill. phone conversations to keep lines free during the emergency.

P rotecting the Bell team In 1918, Bell President Lewis McFarlane sent advice to employees about influenza symptoms and how they could protect themselves, urging the team to “avoid this epidemic by every possible means.” In 2020, Bell implemented strict health and safety measures across the business, providing our team with personal protective equipment, remote work capabilities and enhanced access to virtual health services including mental health support.

● Lewis McFarlane, Bell President, 1918

26 | BCE Inc. 2020 Annual Report In major centres, clerks and other office staff were redeployed to take on the work of switchboard operators, also echoed in our COVD-19 response as we moved many team members from heavily impacted businesses like retail and media to take on customer service and support roles during the crisis. Innovative delivery for customers Looking back after the influenza crisis had subsided, In 1918, installers like Port Perry’s Bell Vice President (later President) Charles Sise Jr. described Don McIntosh and his colleagues found how the Bell team had responded: ways to stay safe and keep customers connected, including wearing “a crude “Probably never before has the operating staff been called mask of cheesecloth saturated in upon to carry such heavy loads over such an extended period. formaldehyde. Sometimes a telephone That they did this willingly, in an endeavor to meet the crisis, would be fastened to a board and shows a strong sense of loyalty to the community, the pushed through the window.” In 2020, Company, and their fellow-workers.” Bell’s Assisted Self-Installation and Bell’s key operating principles during the COVID crisis are a Repair program allowed technicians modern reflection of that enduring focus on delivering for to support customers remotely by voice all our stakeholders: Keep Canadians connected and informed; and video links from their vehicles. protect the health and safety of the public, our customers and team; and support our customers and communities. In 2020, Bell stepped up for our customers, with 99.99+% network reliability, complimentary TV and Internet services, relief for those struggling with their bills and accelerated network deployments, and for our communities with additional Bell Let’s Talk funding and significant donations of protective equipment, and complimentary mobile services for healthcare and other workers on the front lines.

BCE Inc. 2020 Annual Report | 27 Today just got better

28 | BCE Inc. 2020 Annual Report Table ofcontents 10 9 8 7 6 5 4 3 2 1 Management’s discussionandanalysis o O

10.3 10.2 10.1 7.2 7 6.7 ost-employment benefitplans 6.6 6.5 6.4 6.3 6.2 6.1 5.3 5.2 5.1 4.15 4.14 airment ofassets 4.13 4.12 4.11 4.10 4.9 4.8 4.7 4.6 4.5 4.4 4.3 4.2 4.1 3.2 3.1 2.6 2.5 2.4 2.3 2.2 orate governanceandriskmanagement 2.1 1.6 1.5 1.4 1.3 1.2 1.1 Financial measures,accountingp Business risks Regulatory environment Selected annualandquarterlyinformation Financial andcapitalmanagement Business segmentanalysis Consolidated financialanalysis Strategic imperatives . 1 verview utlook, assumptionsandrisks

Introduction Introduction Liquidity Annual financialinformation indicators (KPIs) Effectiveness ofinternalcontrols Non-GAAP financialmeasuresandkey performance Our accountingp Quarterly financialinformation Credit ratings Financial riskmanagement P Cash flows Outstanding sharedata Net debt Bell Media Bell Wireline Bell Wireless Cash flows Capital expenditures Net earningsattributabletocommonshareholdersandEPS Income taxes Other (expense)income Imp Finance costs Depreciation andamortization Severance, acquisitionandothercosts Adjusted EBITD Net earnings Operating costs Operating revenues Customer connections Princip Business out Engage andinvestinourpeople Operate withagilityandcostefficiency Champion customerexperience Deliver themostcompellingcontent Drive growthwithinnov Build thebestnetworks Environmental, socialandgovernancepractices Corp Capital marketsstrategy Key corp About BCE

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111 103 118 115 111 59 54 49 32 99 92 84 67 30 55 54 53 52 52 51 50 49 44 41 39 38 35 33 95 92 90 89 87 86 85 84 84 79 72 67 66 66 65 65 64 64 64 63 63 62 62 61 61 60 59 Consolidated financialstatements Board ofdirectors N Reports oninternalcontrols Investor information Executives otes toconsolidatedfinancialstatements Note 6 Note 5 Note 4 Note 3 Note 2 Report ofindependentregisteredpublicaccountingfirm Note 36 Note 35 Note 34 Note 33 Note 32 Note 31 Note 30 Note 29 Note 28 Note 27 Note 26 Note 25 Note 24 Note 23 Note 22 Note 21 Note 20 Note 19 Note 18 Note 17 Note 16 Note 15 Note 14 Note 13 Note 12 Note 11 Note 10 Note 9 Note 8 Note 7 Note 1 Consolidated statementsofcashflows Consolidated statementsofchangesinequity Consolidated statementsoffinancial position Consolidated statementsofcomprehensiveincome Consolidated incomestatements Report ofindependentregisteredpublicaccountingfirm Management’s responsibility forfinancialreporting Management’s report oninternalcontroloverfinancialreporting

COVID-19 Provisions Goodwill Leases Inventory Severance, acquisitionandothercosts Operating costs Segmented information Discontinued operations Significant accountingp Significant p Related p Commitments andcontingencies Remaining performanceobligations Additional cashflowinformation Share-based p Share capital Financial andcapitalmanagement Other non-currentliabilities P L Debt duewithinoneyear T Other non-currentassets Investments inassociatesandjointventures Intangible assets Property, plantandequipment Contract costs Contract assetsandliabilities T Earnings pershare Income taxes Other (expense)income Imp Interest expense Corp rade payables andotherliabilities rade andotherreceivables ong-term debt ost-employment benefitplans airment ofassets orate information

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172 171 170 129 121 119 169 169 168 167 166 165 162 161 157 157 154 153 152 151 151 150 150 149 148 147 146 145 145 145 144 144 142 142 141 141 140 140 138 137 129 129 128 127 126 125 124 122 121 120 119 |

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Table of contents MD&A Management’s discussion analysis and These statements are not guarantees of future performance or events, All amounts in this MD&A are in millions of Canadian dollars, except areinmillionsofCanadiandollars,except All amountsinthisMD&A Capital marketsstrategy,section 2, Strategic imperatives,section 3.1, Private SecuritiesLitigationReformActof1995 Business outlook andassumptions Business outlook sources ofliquidityweexpecttousemeetouranticipated 2021 cash share dividend,BCE’s anticipated capitalexpenditures CAUTION REGARDINGFORWARD-LOOKING STATEMENTS Unless otherwiseindicatedbyus,forward-lookingstatements without limitation,section 1.3, where noted.Pleaserefertosection10.2, Generation (5G) Canada or, collectively,BellCanada,itssubsidiaries,jointarrangements year endedDecember 31, 2020 whenreadingthisMD&A. Forward-looking statements,bytheirverynature, aresubjecttoinherent and,inparticular, including thisMD&A annualreport, BCE’s 2020 but Please refertoBCE’s auditedconsolidatedfinancialstatementsforthe BCE’s businessoutlook, objectives,plansandstrategicpriorities, other statements that do not refer to historical facts. A statement we other statementsthatdonotrefertohistoricalfacts.Astatementwe outlook, objectives,plansandstrategic prioritiesmaynotbeachieved. or impliedby,suchforward-looking statementsandthatourbusiness or eventscoulddiffermateriallyfrom ourexpectationsexpressedin, general andspecific,whichgiverise tothe possibility thatactualresults expectations as at March 4, 2021 and, accordingly, are subject to change of applicable CanadiansecuritieslawsandoftheUnitedStates(U.S.) expected to result therefrom collectively, BCE Inc., BellCanada,theirsubsidiaries,jointarrangements defined non-GAAPfinancialmeasuresandKPIs. risks and uncertainties and are based on several assumptions, both risks anduncertaintiesarebased onseveralassumptions,both make isforward-lookingwhenituseswhatweknowandexpecttoday requirements, ourexpectedpost-employment benefitplansfunding, and associates. and associates. and after thatdate.Exceptasmayberequiredbyapplicable securities outlook expect In this management’s discussion and analysis (MD&A), laws, wedonotundertakeanyobligationtoupdate orreviseany looking statementsaremadepursuanttothesafeharbourprovisions limitation, statementsrelatingtoourprojectedfinancialperformance looking statements.Theseforward-lookingstatementsinclude,without and section 6.7, analysis andsection 6.7, and keyperformanceindicators(KPIs) investment programtoacceleratefibre,WirelessHomeInternetand in BCE’s 2020 annual report, including in this MD&A, describeour includinginthisMD&A, annualreport, in BCE’s 2020 future eventsorotherwise. forward-looking statements,whetherasaresultofnewinformation, future orconditionalverbssuchas typically identifiedbythewords to make a statement about the future. Forward-looking statements are for 2021,BCE’s dividendgrowthobjectiveand 2021 annualized common 30

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BCE In the company , intend , project c . 2020Annu , may networkexpansion, BCE’s financial policy targets,the , means, as the context may require, either Bell Bell means,asthecontextmayrequire,either mean, as the context may require, either BCE Inc. or, strategy , a plan l R e po , seek r of this MD&A, containsforward- Liquidity ofthisMD&A, , t target , including its two-year increased capital , including its two-year increased capital Key corporate developments , should assumption and other similar expressions or , section 5, , section 5, , aim, strive onpages 11 Non-GAAP financial measures Non-GAAP financialmeasures anticipate, , and goal . will , guidance Business segment 5 . Allsuch forward- to 117 to and the benefits andthebenefits we, believe, us, for a list of alistof for , section 1.4, , objective our, could, Fifth Fifth BCE ,

This MD&A comments on our business operations, performance, financial commentsonourbusinessoperations,performance,financial This MD&A You willfindadditionalinformationrelatingtoBCE,includingBCE’s audited statements. Forward-looking statementsarepresentedinBCE’s 2020 segments; changingviewerhabits andtheexpansion of over-the-top andinparticular annualreport, statements containedinBCE’s 2020 various factorsincluding,withoutlimitation,thefutureimpacts ofthe website atBCE.ca,onSEDAR at e believe that our e believethatour w COVID-19 pandemic, whicharedifficultto predict, position and other matters for the two years ended December 31, 2020 products and services; the intensity of competitive activity including from products andservices;theintensityofcompetitiveactivityincludingfrom We have made certain economic, market and operational assumptions We havemadecertaineconomic,marketandoperationalassumptions , which sections are andassumptions,whichsectionsare Businessoutlook entitled MD&A Documents andotherinformationcontainedinBCE’s websiteorinany BCE’s annualinformationformfortheyearendedDecember 31, 2020, Readers arecautioned,however, thatsuchinformationmaynotbe (OTT) television (TV) and other alternative service providers, as well as television(TV)andotheralternativeserviceproviders, aswell (OTT) content costs and challenges in our ability to acquire or develop key content costsandchallengesinour abilitytoacquireordevelopkey or tobeimplementedasaresultthereof, aswellotherpandemics, other sitereferredtoinBCE’s arenotpart of websiteorinthisMD&A dated March 4, 2021 (BCE 2020 AIF)andrecentfinancialreports, onBCE’s consolidated financialstatementsfortheyearendedDecember 31, 2020, content; the proliferation of content piracy; higher Canadian smartphone content; theproliferation ofcontentpiracy;higherCanadian smartphone epidemics andotherhealthrisks;adverseeconomicfinancial out tobeinaccurate,ouractualresultscouldmateriallydifferent and the adverse effects from the emergency measures implemented and theadverseeffectsfromemergencymeasuresimplemented new and emerging competitors; the level of technological substitution market conditions, a declining level of retail and commercial activity, mentioned forward-lookingstatementsandother materially fromthoseexpressedin,orimpliedby,thepreviously- Theseassumptionsinclude,without mentioned sectionsofthisMD&A. appropriate forotherpurposes. and we caution you against relying on any of these forward-looking and wecautionyouagainstrelyingonanyoftheseforward-looking and 2019. acceleration of disruptions and disintermediation in each of our business acceleration ofdisruptionsanddisintermediation ineachofourbusiness and thepresenceofalternativeservice providerscontributingtothe and theresultingnegativeimpact onthedemandfor, andpricesof, our assumptions werereasonableatMarch 4, 2021.Ifourassumptionsturn and, in particular, including this MD&A, annual report, but without aswellouranticipated operatingenvironment. and businessoutlook forthepurpose of assisting includinginthisMD&A, annual report, In preparing this MD&A, wehavetakenintoaccountinformationavailable In preparing thisMD&A, Important riskfactorsthatcouldcauseactualresultsoreventstodiffer limitation, the forward-looking statements contained in the previously limitation, theforward-lookingstatementscontainedinpreviously limitation, theassumptionsdescribedinvarious sectionsofthis in this MD&A, include, but are not limited to: the COVID-19 pandemic include,butarenotlimitedto:theCOVID-19 pandemic in thisMD&A, incorporated by reference in this cautionary statement. incorporated byreferenceinthiscautionarystatement. in preparing theforward-lookingstatementscontainedinBCE’s 2020 investors andothersinunderstanding ourobjectives, strategicpriorities the fragmentationof, andchangesin, theadvertisingmarket;rising to us up to March 4, unless otherwise stated. 2021, the date of this MD&A, this MD&A andarenotincorporated byreferenceherein. this MD&A from whatweexpect. sedar.com andonEDGARat Subject to Subject to sec.gov. suppliers arebypassed; thequalityofourproductsandservices skill sets and to drive their performance in a safe environment; labour skill setsandtodrivetheirperformanceinasafeenvironment;labour subject; the failure to attract and retain employees with the appropriate systems, equipment and other facilities; in-orbit and other operational significant capitalexpenditurestoprovideadditionalcapacity andreduce such as information security attacks, unauthorized access or entry, such asinformationsecurityattacks,unauthorizedaccess or entry, fire andnatural disasters; the failure to transform our operations, products and services we need to operate our business; the failure of products andservicesweneedtooperateourbusiness;thefailureof penetration andreducedorslowerimmigrationflow;regulatory predict the outcome of government audits; the failure to reduce costs, predict theoutcomeofgovernmentaudits;failuretoreducecosts, (BCE BoardorBoard) our vendor selection, governance and oversight processes; security our vendor selection, governance and oversight processes; security government positions thataffectusandinfluenceourbusiness;the or changestheretointheinterpretationthereof, andtheinabilityto employment benefitplans;neworhighertaxesduetotaxlaws cash flowsfromoperatingactivitiestomeetourrequirements, outsourcers andconsultantstoprovideanuninterruptedsupply ofthe capabilities inadisciplinedandstrategicmanner;theinabilitytodrive our coststructure;thefailuretocontinueinvestmentinnext-generation enabling atrulycustomer-centricserviceexperience,whilelowering disruptions andshortages;ourdependenceonthird-party suppliers, unfavourable changesinapplicable lawsandthefailuretoproactively upgrades, processredesigns,staffreductionsandtheintegrationof and dataleakage exposure ifsecuritycontrolprotocolsaffectingour resolution of legal proceedings and, in particular, class actions; new or risks; pensionobligationvolatility andincreasedcontributions to post- liquidityandmarket be increased;theinabilitytomanagevarious credit, risks to which the satellites used to provide our satellite TV services are business acquisitions; events affecting the functionality of, and our benefits fromourcorporate restructurings,systemreplacementsand network congestion;thefailuretoimplementormaintainhighlyeffective as wellunexpectedincreasesincosts;thefailuretoevolve practices as towhetherdividendswillbedeclaredbyBCE’s boardofdirectors maintain, replace and upgrade, our networks, IT test, ability to protect, a positive customerexperience;thecomplexityinouroperations; inability to access adequate sources of capital and generate sufficient inability toaccessadequatesourcesofcapitalandgeneratesufficient information technology(IT) systems; thefailuretogenerate anticipated increases in capacity demands; the risk that we may need to incur inability to protect our physical and non-physical assets from events initiatives, proceedingsanddecisions,governmentconsultations to effectivelymonitorandcontrolfraudulentactivities;unfavourable fund capital expenditures and provide for planned growth; uncertainty to complywithapplicable governmentregulationsandstandards;the the extenttowhichtheymaybesubjectmanufacturingdefectsorfail failure to maintain operational networks in the context of significant failure tomaintainoperationalnetworksinthecontextofsignificant or whether the dividend on common shares will or whetherthedividendoncommonshareswill These and other risk factors that could cause actual results or events These andotherriskfactorsthatcouldcauseactualresultsorevents some of which may be significant. Except as otherwise indicated by Exceptasotherwiseindicatedby some ofwhichmaybesignificant. with theresultthatactualnatureandvalue ofcapitalinvestments COVID-19 pandemic andgeneraleconomicconditionsinfutureyears. particular to each of them. We therefore cannot describe the expected potential acquisitions,dispositions, mergers,businesscombinations, arenot previously mentionedsectionandinothersectionsofthisMD&A particular, insection9, We caution readers that the risk factors described above and in the We cautionreadersthattheriskfactorsdescribedaboveandin Forward-looking statements contained in BCE’s 2020 annual report, annualreport, Forward-looking statementscontainedinBCE’s 2020 our forward-looking statements are discussed in this MD&A and, in and,in our forward-lookingstatementsarediscussedinthisMD&A communication devicesandequipment. equipment andlabour. However, therecanbenoassurancethatthe over thenexttwoyearsassumeourabilitytoaccessorgenerate or that may occur after March 4, 2021. of anysuchtransactionsorspecialitemsthatmaybeannounced deemtobeimmaterialmay knowntousorthatwecurrently currently except foranassumedimprovementintheriskfactorsrelatedto competitive, regulatory,security,technological,operational,financial us, forward-lookingstatementsdonotreflectthe potential impact made byBCE,aswellthetimingthereof, couldmateriallydiffer required sourcesofcapital,equipmentorlabourwillbeavailable nature andvalue ofcapitalinvestmentsplannedtobemadebyBCE beyond 2021 furtherassume,unlessotherwiseindicated, that the beyond 2021 risks affectingourbusiness. and health concerns about radiofrequency emissions from wireless and healthconcernsaboutradiofrequencyemissionsfromwireless and governmentalchangingexpectationsonenvironmentalmatters; and adequately respond to climate change concerns or address ourlegal and regulatoryobligations; the failuretorecognize and are consequently subjecttogreateruncertainty.Inparticular,and areconsequently the assumptions andestimatesthanforward-lookingstatementsfor 2021 also have a material adverse effect on our business, financial condition, also haveamaterialadverseeffectonourbusiness,financialcondition, and otherrisksdescribedaboveinsection9, liquidity, financialresultsorreputation. impact inameaningfulway,orthesamewaywepresentknown investments, monetizations,jointventuresandothertransactions, including in this MD&A, for periods beyond 2021 involve longer-term forperiodsbeyond 2021 including inthisMD&A, from currentexpectations.Forward-looking statementsforperiods the necessary sources of capital as well asaccess the necessary the only ones that could affect us. Additional risks and uncertainties not the onlyonesthatcouldaffectus.Additionalrisksanduncertaintiesnot to differ materially from our expectations expressed in, or implied by, to differmateriallyfromourexpectationsexpressedin,orimpliedby, transactions and special items can be complex and depends on facts transactions andspecialitemscanbecomplexdependsonfacts will remain substantially unchanged during such periods, this MD&A Business risksofthisMD&A. From timetotime,weconsider The financial impact of these BCE In c . 2020Annu Business risks, a stakeholder l R e po r t

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MD&A MD&A Overview 1 • • • The The emergency measures put in place in Canada startingin March 2020 2020. InQ4 2020, wecompletedthesaleforproceedsof$933 million COVID-19 2020 REPORTING CHANGES (1) were sold were no longer depreciated or amortized effective June 1, were soldno longer depreciatedor amortized effective June 1, On June 1, 2020,BCEannouncedthatithadenteredintoanagreement performance inthethirdquarter. However, performance throughout December, resulting in the closure of all non- (net of debt and other items) and recorded a gain on sale, net of taxes, (net ofdebtandotheritems)recordedagainonsale,nettaxes, our businessandfinancialresultsin2020: commercial activities across most sectors of the economy and had commercial activities across most sectors of the economy and had of cash flows to make them consistent with the presentation for the of cashflowstomakethemconsistentwiththepresentationfor discontinued operationsastheymay affectthecomparability ofour of $211 million. The capitalgainasaresultofthesaleismainlyoffsetby current year. Property, plant and equipment and intangible assets that quarter of2020.Thegradualeasingcertainemergencymeasures on ourBellWirelessandMediasegments.Themostsignificant due totheresurgenceinnumberofCOVID-19 cases, government related to the sale for the previous year to discontinued operations restrictions resume somelevelof, orincrease,commercial activities,resulting affected all threeof our segments,with a more pronounced impact an adverse and pervasive impact on our financial and operating adjusted EPS (1)andfreecashflow In Q2 2020, we updated our definitions of adjusted net earnings In Q2 2020, lower consumeractivityduringkeysellingperiods. in a marked sequential improvement in our business and financial in amarkedsequentialimprovementourbusinessandfinancial impact of the COVID-19 in our consolidated income statements and consolidated statements in our consolidated income statements and consolidated statements in thelatterpart ofthesecondquarterallowedmanybusinessesto the recognitionofpreviouslyunrecognized capitallosscarryforwards. Wehavereclassifiedamounts transaction valued at$1.04 billion. to sellsubstantiallyallof itsdatacentreoperations inanall-cash the disruptedretailand significantly to combattheCOVID-19 pandemic 32

Decreased service revenues in our Bell Wireless segment primarily Decreased service revenues in our Bell Wireless segment primarily Lower wirelessproduct salesdrivenbyreducedmarketactivity, Lower advertising revenues fromourBellMedia segment dueto customer travelandthewaivingofroamingchargesduring due toloweroutboundroamingrevenuesresultingfromreduced distribution channels events customer cancellations attributable to the temporary shutdown of month ofApril 2020 businesses andthecancellationand/orpostponement ofsporting fewer

| Adjusted net earningsandadjusted EPS Therefore, theyareunlikely tobecomparable tosimilarmeasurespresented by otherissuers.Seesection10.2, Adjusted netearnings,adjusted EPSandfreecashflowarenon-GAAP financialmeasuresanddonothaveanystandardized meaningu

reintroduction oflockdown measuresincertainareas.Thisdrove COVID-19 BCE In promotional offersandthetemporary closure ofourretail Overview c . 2020Annu were pandemic hadthefollowingprincipal consequenceson gradually tightened and became more severe in late gradually tightenedandbecamemoresevereinlate a l R e po most of pandemic was experienced in the second r t , andFree cash flowanddividend payout ratio 2020. Consequently, thisunfavourably 2020. Consequently, (1) toexcludetheimpacts of starting essential businesses and essential businessesand in lateSeptember, in this MD&A formoredetails,including reconciliations tothemostcomparable IFRSfinancial measure. inthisMD&A (1) , • • • • • To alignwithchangesinhowwemanageourbusinessandassess sector, isnowmanagedbyourBell Business Marketsteaminorderto Ourpublicsafetylandradionetworkbusiness,which builds segment. will depend on future developments that are financial resultsandcould potentially distorttheanalysisoftrendsin COVID-19 pandemic, includingthecurrentresurgenceandpossible COVID-19 pandemic, purposes. Previously,theseresultswereincludedwithinour BellWireless performance, theoperatingresultsofourpublicsafetylandradio potential potential outcomes, Due touncertaintiesrelatingtheseverityanddurationof effective January 1, 2020, with prior periodsrestatedforcomparative duration andresurgencesoftheCOVID-19 pandemic andtheactions better serveourcustomerswithend-to-end communicationssolutions. network businessarenowincludedwithinourBellWirelinesegment restated forcomparative purposes. Seesection10.2, business performance.Asaresultofthischange,priorperiodshavebeen required tocontainthecoronavirusorremedyitsimpacts, amongothers. related assumptions. Our business and financial results could continue and manages land mobile radio networks primarily for the government and manageslandmobileradionetworks primarilyforthegovernment as well as new information which may emerge concerning the severity, measures and key performance indicators (KPIs) the to whichtheCOVID-19 pandemic willcontinue toadverselyimpact us andnegativelyimpacted infutureperiods.Theextent to besignificantly the COVID-19 pandemic onourbusinessorfuturefinancialresultsand andvarious future resurgencesinthenumber ofCOVID-19 cases,

A reduction in Bell Wireless and Bell Wireline subscriber activity due A reductioninBellWirelessandWirelinesubscriberactivitydue segment, including segment, Higher capitalinvestmentsinwirelessandwirelinenetworkcapacity Higher COVID-19 Lower anddelayedcustomerspendinginourbusiness markets Higher baddebtexpenseandcustomeraccommodations,including enhancements tosupport increaseddemand donations, purchaseofpersonalprotectiveequipment(PPE) environment anddifficultiesaccessingcustomerpremises due tothetemporary shutdownofbusinesses,uncertaineconomic delayed implementation of price increases and revenue credits, due closure ofourretaildistributionchannelsresultinginloweractivations, moderated bylowerdeactivations incremental buildingcleaningandsupplies investments in online fulfillment, customer self-serve and automation customerself-serveandautomation investments inonlinefulfillment, to thefinancialdifficultyexperiencedbycustomers to reducedmarketactivity,fewerpromotionsandthetemporary tools, effective distributionofapproved vaccines andtreatments,the

as well development anddistribution of Non-GAAP financial measures and key performance indicators (KPIs) – Non-GAAP financial measures andkeyperformanceindicators(KPIs) improved app functionality - related expensesprimarilyinourBellWireline it isdifficult related to nder at thistimetoestimatetheimpacts of International FinancialReporting Standards ( employee redeployment, greater employee redeployment, new difficult to predict vaccines andtreatment , alongwithgreater Non-GAAP financial Non-GAAP financial , for more details. , including , including IFRS s ) . , , At December 31,2020 BCE’s business segments BCE 1.1 communications company AT AGLANCE Our resultsarereported inthreesegments:BellWireless,Wireline Bell Wireless provides wireless voice and data communication products BCE isCanada’s largestcommunicationscompany, providingresidential, (TSX, NYSE:BCE). across Canada. all theircommunicationsneeds.BCE’s sharesarepubliclytradedon business and wholesale customers witha wide range of solutions for and services to our residential, small and medium-sized business and and servicestoourresidential,smallmedium-sizedbusiness and BellMedia. large enterprise customers the Toronto StockExchangeandontheNewYork StockExchange Wireless

Bell Bell Introduction isCanada’s largest

Wireline as well as BCE Bell Bell

products consumer electronic products

Media Bell Bell

• • • services fromortoresellersandothercarriers. services, digitalmediaradiobroadcastingservicesand service andconnectivitytobusinesscustomersareavailable nationally which buys and sells local telephone, long distance, data and other which buysandsellslocaltelephone,longdistance,dataother Ontario, provincesandManitoba,whilesatelliteTV Québec,theAtlantic protocol television (IPTV), local telephone, long distance, as well as other protocol television(IPTV),localtelephone,longdistance,aswellother We alsoholdinvestmentsinanumberofotherassets,including: Bell MediaprovidesconventionalTV, specialtyTV, pay TV, streaming Bell Wireline provides data, including Internet access and Internet out-of-home (OOH)advertisingservicestocustomersnationally communication services and products to our residential, small and medium-sized business and large enterprise customers, primarily in medium-sized businessandlargeenterprisecustomers,primarilyin across Canada. across Canada.Inaddition, this segmentincludes our wholesalebusiness,

Québec, aswellPlaceBellinLaval, Québec Canadiens HockeyClub, evenko andtheBellCentreinMontréal, (MLSE) a 28%indirectequityinterestinMapleLeafSports &Entertainment Ltd. an 18.4% indirect equity interest in entities that operate the Montreal an 18.4%indirectequityinterestinentitiesthatoperatetheMontreal a 50%indirectequityinterestinGlentel Inc. (Glentel) BCE In c . 2020Annu a l R e po r t

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MD&A Overview MD&A Overview +2.6% $2,498 $22,883 10.2 million subscribers BCE 2020 CONSOLIDATED RESULTS OUR GOAL OUR BCE CUSTOMER CONNECTIONS strategic imperativesthatunderlieBCE’s businessplanare: Total Wireless to common shareholders Net earnings attributable Operating revenues (1) Our strategyiscentredonourdisciplinedfocusandexecutionofsixstrategicimperativesthatposition ustodelivercontinuedsuccess.Thesix profit, freecash flowand returnon investedcapitalbyfurther enhancingour position astheforemostprovider in Canada ofcomprehensive profit, BCE’s goalis to advance how Canadians connect witheachother and the world. Our strategicimperativesframe our longstandingstrengthsin communications servicestoresidential,businessandwholesalecustomers,asCanada’s premiercontentcreationcompany. Weseekto operating communications marketplace.Ourprimarybusinessobjectivesaretogrowoursubscriberbaseprofitablyandmaximizerevenues,operating networks, serviceinnovation andcontentcreation,position thecompany forcontinuedgrowthand innovation leadershipinafast-changing lines ofbusinesstocreatevalue forbothourcustomersandotherstakeholders. (17.8%) vs.2019 (3.8%) vs.2019 take advantage ofopportunities toleverageournetworks,infrastructure,saleschannels,andbrandmarketingresourcesacrossvarious at theendof2020 million million 34 6 STRATEGIC

IMPERATIVES BELL’S

Adjusted EBITD a reconciliation tothemostcomparable IFRSfinancialmeasure. other issuers.Seesection 10.2, |

BCE In

c . 2020Annu

A isanon-GAAPfinancial measureanddoesnothaveanystandardized meaningunderIFRS.Therefore,itisunlikely tobecomparable tosimilarmeasurespresented by a l R e po Non-GAAP financialmeasures andkeyperformanceindicators(KPIs) –AdjustedEBITDA andadjusted EBITDA margin r t 1 4 Champion Champion Build the Build the customer experience best networks

+4.2% $2,730 3.7 million subscribers Internet Retail high-speed earnings net Adjusted (12.5%) vs.2019 at theendof2020 million

$2,699 Net earnings Net (17.0%) vs.2019 million

5 2 Operate with agility Operate withagility Drive growth with Drive growthwith and costefficiency innovative services

$7,754 (1.2%) Retail TV Retail activities operating from flows Cash 2.7 million subscribers (2.6%) vs.2019 at theendof2020 million

$9,607 Adjusted EBITDA (4.0%) vs.2019 million

6 3 Engage and invest Engage andinvest Deliver themost compelling content in ourpeople

$3,348 (7.9%) access services (NAS) lines services access Retail residential network flow Free cash 2.5 million subscribers (10.4%) vs.2019 at theendof2020 million in this MD&A for more details, including formoredetails,including inthisMD&A

(1)

• • • • • • The vast majority of ourcell towers are connected with fibre, the latest 4.8 billion megahertzperpopulation (MHz-Pop),4.8 billion corresponding toan Bell Wireless Bell 1.2 OUR PRODUCTS AND SERVICES AND PRODUCTS OUR speed dataservicestovirtuallyalloftheCanadianpopulation. Our5G spectrum bands and regions across Canada, totalling more than ( ( OUR NETWORKSANDREACH SEGMENT DESCRIPTION Our Fourth Generation(4G)Long-term Evolution (LTE) andLTE Advanced We havemorethan4 We holdwirelessspectrumlicences,withholdingsacrossvarious We report theresultsofouroperationsinthreesegments:BellWireless,WirelineandMedia.Wedescribeproductlinesbysegment Lucky Mobile and The Source locations, as well as Glentel-operated Lucky Mobile and The Source locations, as well as Glentel-operated (LTE-A) nationwidewirelessbroadbandnetworksarecompatible with other third-party dealerandretaillocations. global standardsanddeliverhigh-qualityreliablevoice andhigh- connection. as itexpands acrossCanada. network, launched in June 2020, is the next-generation of wireless network, launched in June 2020, network infrastructuretechnology,forafasterandmorereliable average ofapproximately 137 Megahertz (MHz)ofspectrumperCanadian. below, toprovidefurtherinsightintoouroperations. locations (WIRELESSWAVE, TboothwirelessandWIRELESS etc.)and including approximately 1,200 Bell, technology. OurLTE networkwillbethebackboneforour5G 2 1

Toronto Area(GTA)); LTE-A, upto1.5 1.7 Gbps (averageexpectedspeedsof69 to 385 Mbps intheGreater subset ofourLTE network, supporting low-power InternetofThings Canada Our LTE-M networkisavailable inmostCanadianprovinces plus ( products and services to residential and business customers across products andservicestoresidentialbusinesscustomersacross Bell also operates a LTE-category network, which is a M1 (LTE-M) Reverts toLTE/LTE-A technology and speedswhencustomersare Peak theoretical mobile data access download speeds: 5G, upto LTE-A coveringapproximately 96%ofCanada’s population and5G LTE coverageofover99%Canada’s with population coasttocoast, Electronics Inc.(TheSource) Provides integrateddigitalwirelessvoice anddatacommunication (expected averagespeedsof18 to 40 Mbps); ( (average expected speeds of 25 to 319 (average expectedspeedsof25 to outside 5Gcoverageareas covering 26%ofCanada’s population atDecember 31, 2020 and ournationalconsumerelectronicsretailer, TheSource and lowercostsforIoTdevicesconnectingtoBell’s nationalnetwork. Includes the results of operations of Bell Mobility Inc. (Bell Mobility) (BellMobility) Includes theresultsofoperationsBellMobility Inc. ) ) theoretical download speeds of up to 1.5 Gbps on LTE-A available are currently in Kingston, Waterloo, Toronto, Mississauga, Vaughan, Richmond Hill, Markham, Brampton, North Bay, IoT Network speeds v Peak Niagara-on-the-Lake, Catharines, Thorold,ThunderBay,WellandandOttawa. Compatible Cambridge, Pickering,Ajax,Burlington,Guelph,London, devicerequired. NiagaraFalls, Oakville,St. ut BCE ) applications with enhanced coverage, longer device HSPA+ Abo ) , upto42 Mbps (expectedaveragespeedsof ary withlocation, signalandcustomer device.Compatible devicerequired. , 6 00 retail points ofdistributionacrossCanada, Virgin MobileCanada( Gigabit(s) persecond( Mbps); LTE, up to 150 Mbps Mbps); LTE, upto150 Mbps High-speed packet access High-speed packet access 7 Virgin Mobile to 14 Mbps) battery life Gbps) (Bell) (1 (2 ) , ) ) • • • • • • OUR PRODUCTSANDSERVICES

Travel: roamingserviceswithotherwirelessserviceprovidersin Specialized plans: services, wehaveplansthatcatertoallcustomersegments,available smartphones, tablets, mobile Internet hubs and sticks, mobile Wi-Fi smartphones, tablets,mobileInternethubsandsticks,Wi-Fi services providefastInternetaccessforvideo, socialnetworking, shareable, worker safetyandmobilitymanagement Connected Car Data and voice plans: Mobile businesssolutions: Extensive selectionofdevices: devices andconnectedthings(smartwatches,BellConnectedCar, on eitherpostpaid orprepaid options,includingunlimiteddata, management andotherIoTservices more than 230 outbound destinationsworldwidewithLTEmore than230 outbound roaming messaging andmobileapplications, aswellahostofcallfeatures. asset management, smart buildings, smart cities, fleet smartbuildings,cities,fleet IoT solutions:assetmanagement, in 196 outbound destinations,Roam BetterfeatureandTravel Passes trackers, connectedhome,lifestyleproductsandvirtualreality) OUR BRANDSINCLUDE device financingplans for tablets, mobile Internet, smartwatches and smartwatchesand fortablets,mobileInternet, From plans focused on affordability to premium push-to-talk, field service management, push-to-talk, fieldservicemanagement, and Connect Everything plans. Our and ConnectEverythingplans.Our leading5G,4GLTE andLTE-A BCE In c . 2020Annu a l R e po r t

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MD&A Overview MD&A Overview • • • • • • • Bell Wireline Bell OUR NETWORKSANDREACH SEGMENT DESCRIPTION 36

9.9 million homesandbusinessesinOntario, Québec,theAtlantic 9.9 million services inCanada’s NorthernTerritories sells local telephone, long distance, data and other services from sells localtelephone,longdistance,dataandotherservicesfrom fixed wirelesstechnologydeliveredoverBell’s LTE wirelessnetwork provinces and Manitoba. Our FTTP directfibrefootprintencompassed provinces andManitoba.OurFTTP provinces and Manitoba, as well as in Canada’s Northern Territories provinces andManitoba,whilesatelliteTVserviceconnectivityto Wireless-to-the-premise (WTTP) footprintapproaching 50%ofour Wireless-to-the-premise (WTTP) More than700 Bell andVirginMobilelocations Largest Internetprotocol(IP)multi-protocol labelswitchingfootprint Broadband fibrenetwork, consistingoffibre-to-the-premise(FTTP) Extensive localaccessnetworkinOntario, Québec,theAtlantic (Northwestel),whichprovidestelecommunications Northwestel Inc. Provides data,includingInternetaccessandIPTV, voice, comprisinglocal of anyCanadianprovider, enablingustoofferbusinesscustomers footprintinCanada. of 2020,representingthelargestFTTP or toresellersandothercarriers,thewirelineoperationsof offer competitivelocalexchangecarrier(CLEC)servicesinAlberta underserved communities. business customersareavailable nationallyacrossCanada.Wealso approximately 5.6 million homesandcommercial locations attheend locations, covering approximatelyand fibre-to-the-node (FTTN) and productstoresidential,smallmedium-sizedbusiness bandwidth forreal-timevoice andTV a virtualprivate network(VPN)serviceforIPtrafficandtooptimize and BritishColumbia. Includes theresultsofourwholesalebusiness,whichbuysand large enterprisecustomers,primarilyinOntario, Québec,theAtlantic that provides broadband residential Internet access to smaller and that providesbroadbandresidentialInternetaccesstosmallerand target of1 million is5G-capable locationsprimarilyinruralareas.WTTP telephone andlongdistance,aswellothercommunicationservices

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BCE In c . 2020Annu a l R e po r t • • • • • • • • • RESIDENTIAL BUSINESS OUR PRODUCTSANDSERVICES

TV: IPTV services(FibeTV 4K UltraHDprogramming,on-demandcontentandinnovative features Amazon FireTV, laptops,smartphones, tablets GoogleChromecast, home security, monitoring and automation services Smart Home:homesecurity,monitoringandautomationservices service, marketed as Fibe Internet, offers total download service, marketed as Fibe Internet, with FTTN, while our with FTTN, Other: Cloud: Communications: Google Play.Wealsoofferanapp-based liveTVstreamingservice Crave, Netflix and YouTube. Alt TVapp-based live TV streaming service powered byAndroidTVofferingall-in-oneaccesstoAltTV, support Wavelength, global networksolutions,virtualservices, We also offer Internet service under the Virgin Mobile brand offering Bell Fibe TV provides extensive content options with full high-definition Bell FibeTVprovidesextensivecontentoptionswithfullhigh-definition Bell Streamerisa4K Bundles: Home Phone:localtelephoneservice,longdistanceandadvanced (DSL) withawiderangeofoptions,includingWholeHomeWi-Fi, (HD) and 4K resolution (4K) Whole Home personal video recorder (PVR), home serviceswithmonthlydiscounts currently deliversbroadband currently calling features cloud download speedsofupto100 Mbps. or with FTTP of up to 1.5 Gbps offers liveandon-demandprogrammingonBellStreamer, Apple TV, unlimited usage, security services and mobile Internet. Our Internet OurInternet unlimited usage,securityservicesandmobileInternet. managed Wi-Fi and other devices with no traditional TV set-top box (STB) required. and otherdeviceswithnotraditionalTVset-topbox(STB)required. and webconferencingwebcasting, contactcentresolutions branded asVirginTV business Internet, Ethernet, IP VPN, IPVPN, Ethernet, Internet andprivate networks:businessInternet, Internet: high-speedInternetaccessthroughfibreopticbroadband including wirelessreceivers,theFibeTVapp, Restartandaccessto technology, 5G-capable WTTP technology or digital subscriber line technology ordigitalsubscriberline technology, 5G-capable WTTP from BellSmartHome for all major streaming services and access to thousands ofapps OUR BRANDSINCLUDE managed services cloud computing, cloud connect, backup and disaster recovery, backupanddisaster recovery, cloud computing,connect, security, managed services,professionalservices multi-productbundlesofTV, homephoneandsmart Internet, IP telephony,localandlongdistance, audio, video . W High DynamicRange ( ireless , Alt TV and Virgin TV H download speeds of up to download ome I nternet speeds of up to 50 Mbps. speeds ofupto50 Mbps. ) and satellite TV service. ) and satellite TV service. HDR) fixed wireless service fixed wireless service streaming device streamingdevice access 100 Mbps 100 Mbps speeds speeds on on • • • • • • • • • • • Bell Media BROADCAST RIGHTS DIGITAL MEDIA OOH ADVERTISING RADIO VIDEO OUR ASSETSANDREACH SEGMENT DESCRIPTION

• • • 4 pay TV services and3 direct-to-consumer (DTC) streaming services, 109 licensed radiostationsin58 markets acrossCanada 35 conventional TVstations,includingCTV,35 conventional Canada’s network #1 TV Association (FIFA)World Cupevents,Curling’s SeasonofChampions, 27 specialty TVchannels, includingTSN,Canada’s most-watched 27 specialty Sports: sports channelandRDS,thetopFrench-language sports network video, radio, OOHadvertisinganddigitalmedia Canadian broadcaster of the Super Bowl, Grey Cup and International Canadian broadcasteroftheSuperBowl,GreyCupandInternational Canada’s leadingcontentcreationcompany withpremierassetsin Group forHBOMax Winnipeg Jets andOttawa Senators,Canadian Football League(CFL), Formula Major LeagueBaseball Major LeagueSoccer National Football League (NFL),NationalBasketballAssociation(NBA), More than200 websites andmorethan30 apps facesinkeyurbancities Network ofmorethan50,000 advertising Revenues arederivedprimarilyfromadvertisingandsubscriberfees HBO Max: HBO: (UFC) coverage includestheToronto MapleLeafs,MontrealCanadiens, on-demand and OTT platforms on-demand andOTT across Canada non-children’s and libraryHBOprogramminginCanadaexclusivelyonourlinear, and more. Ice HockeyFederation(IIHF)World JuniorChampionship. Livesports in Québec including Crave,theexclusivehomeofHBOinCanada for 19 consecutive years,andtheFrench-languagefor 19 consecutive Noovo network

Specialty TVrevenueisgeneratedfromsubscriptionfeesand Conventional TV, radio, OOHanddigitalmedia revenuesarederived Pay TVrevenueisderivedfromsubscriptionfees advertising from advertising , NationalCollegiateAthleticAssociation long-term agreementtodeliverallcurrent-season,past-season long-term mediarightstokeysports propertiesandofficial 1 (F1),GrandSlamTennis,UltimateFightingChampionship long-term exclusive agreement to deliver programming (MLS) (MLB) , FédérationInternationaledeFootball produced byWarner Bros.Television , Golf’s Majors,NASCAR Cup Series, (NCAA) , March Madness Madness , March original,

• • • • • • • • • • • OTHER ASSETS OUR PRODUCTSANDSERVICES

TSN DirectandRDS Advertising STARZ: SHOWTIME: STBs, mobile devices, streaming devices and online. Crave is offered STBs, mobiledevices,streamingdevicesandonline.Craveisoffered Varied and extensive array of TV programming to broadcast distributors services inCanada Crave present andfutureSHOWTIME-ownedprogramming production facilities,equipmentrentals,andtechnicalservices production studioinCanada pay TVplatformSTARZ inCanada HBO Max, SHOWTIME Minority interestinMontréal’s Grand Equity interestinDomeProductionsPartnership, oneofNorthAmerica’s Partnership in Just for Laughs, the live comedy event and TV producer Majority stakeinPinewoodToronto Studios,thelargestpurpose-built devices, Apple TVandotherstreamingdevices toconsumersthrougha on-demand TSNandRDScontentdirectly monthly orsingle-day subscription on computers, tablets, mobile multipurpose TV, film, andequipmentcompany whichprovides a large collection of premium content in one place, including HBO, a largecollectionofpremiumcontentinoneplace,includingHBO, across Canada iHeartRadio: local andnationaladvertisersacrossawiderangeofindustrysectors leading providersofsports andothereventproductionbroadcast to all Canadian Internet subscribers as an OTT service. to allCanadianInternetsubscribersasanOTT through anumberofCanadianTVprovidersandisavailable directly facilities OUR BRANDSINCLUDE

bilingual long-term agreement with Lionsgate to deliver U.S. premium long-term agreementwithLionsgatetodeliverU.S.premium onourTV, radio, OOH,anddigitalmediapropertiestoboth content licensing and trademark agreement for past, content licensingandtrademarkagreementforpast, exclusive partnership fordigitalandstreamingmusic subscription on-demand TV streaming service offering subscription on-demandTVstreamingserviceoffering , STARZ streamingservicesofferingliveand and Super Écran é Studios, a Montréal-based Studios,aMontréal-based BCE In c . 2020Annu programming, on a l R e po r t

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37

MD&A Overview MD&A Overview • • • This sectioncontainsforward-lookingstatements,includingrelatingtoourcapitalinvestmentaccelerationprogram.Referthe The ethicalbusinessconductofourpeopleiscoreto the integritywith 1.3 BCEOther investments 1,396 employees compared totheendof 50,704 employees, adecreaseof Approximately 41%oftotalBCEemployees At theendof2020,ourteamcomprised 2019, due to natural attrition, retirements 2019, duetonaturalattrition,retirements OUR PEOPLE OUR SALE DATA OF CENTRES CAPITAL ACCELERATION INVESTMENT PROGRAM BELL CODEOFBUSINESSCONDUCT EMPLOYEES were represented by labour unions at were representedbylabourunionsat with practicalguidelinestoconductbusinessinanethicalmanner. which we operate our business. The Bell Code of Business Conduct sets COVID-19 2021,Bellannounced On February 4, December 31, 2020. Bell expects to invest approximately $700 million of this additional ofthisadditional Bell expectstoinvestapproximately $700 million BCE alsoholdsinvestmentsinanumberofotherassets,including: call centrehiring. global interconnection anddata centre company Equinix,Inc. (Equinix) country’s economicrecoveryandfuturegrowth. out specific expectations and accountabilities, providing employees underscoring the essential role Bell networks have played in Canada’s and workforce reductions, partly offset by offset by and workforcereductions,partly broadband fibre and wireless networks with a $1 billion to $1.2 billion broadband fibreandwirelessnetworkswitha$1 billion to$1.2 billion at 13 acceleration acceleration incapitalexpendituresoverthenext regarding forward-lookingstatements In thefourthquarterof in 2020 in anall-cashtransactionvalued atCdn$1.04 billion. Thistransaction 38

Laval, Québec estate andentertainmentassetsinToronto and producerofculturalsports events)andtheBellCentreinMontréal an 18.4%indirectequityinterestinentitiesthatoperatetheMontrealCanadiensHockeyClub, evenko (apromoter a 50%indirectequityinterestinGlentel, a 28%indirectequityinterestinMLSE,sports andentertainmentcompany thatownsseveralsports teams, including theToronto MapleLeafs,theToronto Raptors, Toronto FCandtheToronto Argonauts,aswellreal

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BCE In ey corporate developments sites, representingsubstantiallyall ofitsdatacentreoperations, from thesaleofsubstantiallyallourdatacentreoperations. K c . 2020Annu pandemic will besubstantiallyfundedby a response, andhowimportant theywillbetothe l R 2020, BCEcompleteditssaleof25 data centres e po r t atthebeginningofthisMD&A. its planto

Canadian-based the 2019 employees BCE proceeds received proceeds received rapidly expand its The 12% investment two 52,100 68% connected servicesretailer years, 20% to to

wireless networkinthecountry,toapproximately 50%ofthepopulation. wireline network footprints. This includes an incremental increase of wireline network footprints. This includes an incremental increase of Our commitment totheCodeofBusinessConductisrenewedby Our commitment Markets becamethefirstEquinix Platinum Partner in content and service innovation. As part of the transaction, Bell Business toaccelerate capital in 2021 employees eachyearinanongoingefforttoensurethatall up to 400,000 more homes and reinforces Bell’s strategytofocusinvestment onnetworkinfrastructure, rural approximately 6.9 million locations by the end of 2021). At the same locations bytheendof2021).Atsame approximately 6.9 million are awareof, andadhereto, Bell’s standardsofconduct. locations covered with direct fibre and W time, Bell plans to double the national coverage of Bell 5G, the fastest time, Bellplanstodoublethenationalcoverageof5G,fastest this yeartoasmany900,000,foratotalbroadbandfootprint of

12% 68% 20% as well as Place Bell in , QuébecaswellPlaceBellin W

ireless

Bell Media Bell Wireline Bell Wireless H ome I nternet 2020 employees BCE

service (which the expansion of 12% businesses 50,704 70% 18% ireless is expected to covered by fast fibre and covered byfastfibre and both our wireless and both our wireless and H ome

Canada. 12% 70% 18% I nternet

increase new increase new Bell Media Bell Wireline Bell Wireless Caution Caution service service 6.1% 75% of free cash flow and balancing our strategic business priorities. 75% offreecashflowandbalancingourstrategicbusinesspriorities. This section contains forward-looking statements, including relating This section containsforward-lookingstatements, including relating 1.4 BELL MEDIA LEADERSHIP CHANGE BELL MEDIA LEADERSHIP DIVIDEND GROWTH AND PAYOUT AND GROWTH DIVIDEND POLICY $3.50 per sharefrom$3.33 per sharein2020,startingwiththequarterly Dividend statements atthebeginningofthisMD&A. ( (1) EXECUTIVE COMPENSATION ALIGNMENT Our objective is to seek to achieve dividend growth while maintaining Our objectiveistoseekachievedividendgrowthwhilemaintaining On February 4, 2021, we announced a 5.1%, or 17 cents, increase in increasein 2021,weannounceda5.1%,or17 cents, On February 4, On January 4, 2021, Wade Oosterman assumed operational leadership of BCE’s managementequity-basedincentiveplansarestructuredtomaximizeshareholdervalue, sharepriceandcapitalreturns,aswell BCE wasmostrecently Mr. Oosterman Bell Media in addition to his media strategy role following the departure our dividendpayout ratio dividend growth. delivering onourgoalofadvancing howCanadians connectwitheachotherandtheworld,throughsuccessfulexecutionofoursixstrategic dividend payable onApril 15, 2021.ThisrepresentsBCE’s 17th increase dividend and financial policy targets, of BellMediaPresidentRandy Lennox.ABellexecutivesince2006, residential and media segments. In his prior roles, Mr. Oosterman residential andmediasegments.Inhispriorroles,Mr. Oosterman and imperatives. yearof5%orbetter increase of140%.ThisisBCE’s 13th consecutive in 2020 to its annual common share dividend since 2009, representing a total to itsannualcommonsharedividendsince2009,representinga total the annualizeddividendpayable onBCE’s commonsharesfor 2021 to to 2 )

Dividend p Annualized dividendper BCEcommonsharedividedbyBCE’ by otherissuers. Seesection10.2, BCE’s apital strategy markets BCE Best practices Best practices compensation adopted by for executive for executive plans. Refertothesection and C dividend growthobjective, Bell, ayout ratioisanon-GAAP financialmeasureanddoesnothaveany standardizedmeaningunderIFRS.Therefore, itisunlikelytobecomparable tosimilarmeasures presented yield We haveastrongalignmentofinterestbetweenshareholdersand our management’s equity-basedincentive plan responsible forstrategicdirectionofBell’s wireless, (1) (2

) withinthetargetpolicy rangeof65%to Non-GAAP financial measuresand keyperformanceindicators (KPIs)– Free cashflowanddividend payoutratio Caution regarding forward-looking Caution regardingforward-looking and Vice Chairand annualized common share 2021 annualizedcommonshare our • • • • • • •

Vesting criteriafullyalignedto shareholderinterests Stringent shareownershiprequirements Anti-hedging policy on shareownershipandincentivecompensation payouts, inadditiontomid-termandlong-termincentive grants Caps onBCEsupplemental executive retirementplansandannualbonus Clawbacks forthe Double triggerchange-in-controlpolicy Emphasis onpay atrisk forexecutivecompensation all Executive Vice- business +5.1% s sharepriceattheend oftheyear. 2021 dividend increase 2021 dividend to $3.50 percommonshare outlook, objectives outlook, objectives Group President, President, P P residents aswellalloptionholders resident and services thatareessentialtodrivingthelong-termgrowthofourbusiness. served asBell’s ChiefBrandOfficersincehejoinedthecompany. As served asPresidentofMobilityandResidentialServiceshasalso will beincreasedorthatdividendsdeclared. flow pandemic payout ratiowas89%,whichishigherthanourpolicy rangedueto We seek to deliver sustainable shareholder returns through President andChiefBrandOfficer. Mr. Oosterman focuses fully on his role at Bell Media, BCE’s dividendpayout policy, increasesinthecommonsharedividend BCE ongoing capital investment on advanced broadband networks and dividend dividend policy willbemaintained, thatthedividendoncommonshares remain and the declaration of dividends are subject to the discretion of the and thedeclarationofdividendsaresubjecttodiscretion in capitalexpendituresandongoingfinancialimpacts of the impact oftheCOVID-19pandemic. formerly B generation oard and, consequently, therecanbenoguaranteethatBCE’soard and,consequently, Chief Executive above ourtargetpolicy rangethisyear. growth Senior Vice-President, Senior Vice-President, expected in2021,BCE’s dividendpayout ratiois . Thisobjectiveisunderpinnedby and a strong balance sheet, supporting asignificant and astrongbalancesheet, 65%–75% Dividend payout policy payout Dividend of freecashflow O fficer (CE Brand, O Due to a planned acceleration Due toaplannedacceleration ) formoredetails. and and was appointed SeniorVice- BCE In c . 2020Annu substantial In 2020, our dividend In 2020,ourdividend Devorah Lithwick, s . the COVID-19 the COVID-19 a expected l R consistent consistent free cash free cash e po r t

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to to 39

MD&A Overview MD&A Overview +32% • • • • • TOTAL PERFORMANCE SHAREHOLDER RETURN LIQUIDITY OF USE STRONG CAPITAL STRUCTURE shareholder returnsthroughdividend shareholder return Five-year total 2016–2020 (5) (3) (2) (1) DEBT MATURITY PROFILE ATTRACTIVE LONG-TERM PUBLIC FIVE-YEAR CUMULATIVE TOTAL VALUE OFA$100 INVESTMENT (4) Consistent with our capital markets objective to deliver sustainable Consistent with our capital markets objective to deliver sustainable planned levels of capital investment, investment-grade credit ratings investment-gradecreditratings planned levelsofcapitalinvestment, BCE’s balancesheetisunderpinnedbyahealthyliquidityposition of credit profile,providingthecompany withasolidfinancialfoundation cash flow,after payment ofdividendsoncommonshares,inabalanced manner andonusesthatinclude,butarenotlimitedto: approximately $3.8 billion at the end of 2020 and an investment-grade and considerableoverallfinancialflexibility,wedeployremainingfree and a high level of overall financial flexibility. BCE has an attractive and ahighlevelofoverallfinancialflexibility.BCEhasanattractive DECEMBER 31, 2015 – DECEMBER 31, 2020 –DECEMBER 31, DECEMBER 31, 2015 long-term debt maturity profile with no material maturities until the long-term debtmaturityprofilewithnomaterialmaturitiesuntilthe fourth quarter of 2022. We continue to monitor the capital markets 40 $75 $100 $125 $150 $175 $200

11.8 years Average after-taxcostofpubliclyissued Average termofBellCanada’s publicly spectrum purchases)thatsupport thegrowthofourbusiness Debt reduction Funding ofstrategicacquisitionsandinvestments(includingwireless No material publicly issued debt securities No materialpubliclyissueddebtsecurities debt securities:3.0% maturing untilQ4 2022 issued debtsecurities:approximately

These creditratingsare notrecommendationstobuy,sellorhold any ofthesecuritiesreferredto As atDecember 31,2020 Based onBCE’ The changeinBCE’ Each credit rating should be evaluated independently ofanyothercredit rating. Each credit ratingshouldbeevaluated independently Ratings are determined by the rating agencies based on criteria established fromtimeto time by them, and they do notcomment on market price or suitability for aparticular investor. TSX-listed companies. As theheadlineindexfor |

BCE In 2015 2016 2 017 2 c . 2020Annu s commonsharepriceontheToronto StockExchange(TSX)andassum s commonsharepriceforaspecifiedperiod plusBCEcommonsharedividendsreinvested,dividedbyBCE’s commonshare priceatthebeginningofperiod. a l R e (1) po Canadian equity market, the S&P/TSX Composite Index is the primarygaugeagainstwhichto measure total shareholderreturnfor Canadian-based, Canadian equity market, r t (4)

018 2 growth, whilemaintaining (4.1%) • • • shareholder return One-year total 2020 STRONG LIQUIDITYPOSITION

$224 million cashandequivalents $400 million accountsreceivable $3,151 million available under our$3.5 billion securitization available capacity on hand multi-year committedcreditfacilities 019 2020 ing

thereinvestmentofdividends. (1) • • support ourstrategicimperatives,aswelltherepayment ofshort-term financial impacts of purchases, aswellequityriskexposure underBCE’s long-term This graphcompares theyearlychangeincumulativeannualtotal debt. The year-over-yeardecrease was debt. exposure underourvarious debtinstruments.Wealsoseektomaintain equity-based incentiveplansandinterestrateforeigncurrency optimize our cost of capital. We seek to proactively manage financial optimize ourcostofcapital.Weseektoproactivelymanagefinancial risk in terms of currency exposure of ourU.S. dollar-denominated In 2020, free cash flow, after payment of dividends on common shares, in investment-grade creditratingswithstableoutlooks. towards various smallacquisitionsandstrategicpartnerships that the amount of $373 million, down from $919 million in 2019, was directed for opportunities wherewecanfurtherreduceour costofdebtand shareholder return of BCE common shares against the cumulative annual shareholder returnofBCEcommonsharesagainstthecumulativeannual December 31, 2015 andthequarterlyreinvestmentofalldividends. December 31, 2015 ending December 31, 2020, assuming an initial investment of $100 on ending December 31, 2020, assuming an initial investment of $100 on total returnoftheS&P/TSXComposite Index

Share buybacksthroughnormalcourseissuerbid Voluntary contributionstoBCE’sto definedbenefit(DB)pensionplans of creditforfundingdeficits improve thefundedposition oftheplansandreduceuseletters

BCE commonshares , and they may be revised or withdrawn at any time by the assigning rating agency. , andtheymayberevised orwithdrawnatanytimebytheassigning ratingagency. (2) (4)

the COVID-19 pandemic. • CREDIT PROFILE INVESTMENT GRADE

S&P/TSX Comp with stableoutlooks Long-term debtcreditratingofBBB(high) by S&PGlobalRatings Canada(S&P),all by DBRSLimited(DBRS),Baa1 by Moody’s Investors Service,Inc.(Moody’s) andBBB+ osite Index primarily (3) , for the five-year period , forthefive-yearperiod (4) (5) attributable to the attributable to the

programs

The Board and management of BCE believe that strong corporate governance practices contribute to superior results in creating and maintaining 1.5 As a result of financing a number of strategic acquisitions madesince 2020, ournetdebtleverageratiowas2.93 times adjustedEBITDA, which Aliant Inc. and AstralMediaInc.,MLSE,BellAliantand 2010, includingCTV Inc., CORPORATE GOVERNANCE PHILOSOPHY shareholder value. Thatiswhywecontinuallyseektostrengthenourleadershipincorporate governanceandethicalbusinessconductby (1) purchases; aswellaone-timeunfavourable impact in 2019 dueto We monitor our capital structure by utilizing a number of measures, We monitorourcapitalstructurebyutilizinganumberofmeasures, BCE’s adjusted EBITDA to net interest expense ratio atthe end of 2020 Proxy Circular)filedwiththeCanadianprovincialsecuritiesregulatory authorities(available at For moreinformation,pleaserefertoBCE’s mostrecentnoticeofannualgeneralshareholder meetingandmanagementproxycircular(the Below areourkeyBoardinformationandgovernancebestpractices: Manitoba Telecom Services Inc. (MTS); costs andprotectionfrominterestratevolatility fortheforeseeable exceeded theupper limitofourinternaltargetrangeby0.43. our balancesheetonJanuary 1, 2019,ournetdebtleverageratiohas contributions toreduceourpensionsolvencydeficit;wirelessspectrum expense ratio (1),anddividendpayout ratio. of thebusinessandaffairscompany. remained above our internal target range of greater than 7.5 times remained aboveourinternaltargetrangeofgreaterthan7.5 times adjusted EBITDA at8.32,providinggoodpredictabilityinourdebtservice and ExchangeCommission(available at adopting bestpractices,andprovidingfulltransparency andaccountabilitytoourshareholders.TheBoardisresponsible forthesupervision increased abovethelimitofourinternaltargetrange.AtDecember 31, including netdebtleverageratio the adoption of IFRS 16 that added $2.3 billion of leases to net debt future. Adjusted EBITDA tonetinterest BCE CREDITRATIOS Net debtleverageratio 96%

debt leverage ratio they areunlikelytobe comparable tosimilarmeasurespresentedbyotherissuers. Seesection10.2, netdebtleverageratioandadjustedEBITDA tonetinterest expenseratioarenon-GAAPfinancial measuresanddonothaveanystandardized meaningunderIFRS.Therefore, Net debt, expense ratio orporate governance and risk management orporate governancerisk and Annual ElectionofAllDirectors 2020 Board andCommitteeDirectorAttendanceRecord Separate ChairandCEO Majority VotingPolicy forDirectors Directors ElectedIndividually Board DiversityPolicy andTarget forGenderRepresentation Board CommitteesMembersareAllIndependent Directors areALLIndependent(exceptCEO) C and Adjusted EBITDA tonetinterestexpense ratio (1), adjustedEBITDA tonetinterest INTERNAL TARGET voluntary pension plan funding sec.gov), andavailable onBCE’s websiteat 2.0–2.5 >7.5 DECEMBER 31,2020 in this MD&A formore details. inthisMD&A 8.32 2.93

(1) on on debt securities under its new short 2021, BellCanadahadissuednodebtsecuritiesunderitsnewshort securities fromtime will past practice,theshortformbaseshelfprospectuswasrenewedto prospectus, enabling Bell CanadaMTNdebenturesmaturingin2021,torepay short-term February 2020, March 2020, May 2020 and August 2020, raising a raising a and August 2020, May 2020 March 2020, February 2020, Bell Canadasuccessfullyaccessedthedebtcapitalmarketsin debt andforgeneralcorporate purposes. continue to provide Bell Canada with financial flexibility and efficient continue toprovideBellCanadawithfinancialflexibilityandefficient debt securitiestoapproximately 3.0%(4.1%onapre-taxbasis),and of the 2020 offeringswereusedtofund access to the Canadian and U.S. debt capital markets. As at March 4, access totheCanadianandU.S.debtcapitalmarkets.AsatMarch4, modestly lowering our after-tax cost of outstanding publicly issued loweringourafter-taxcostofoutstandingpubliclyissued modestly medium-term note(MTN)debentures.Theissuancescontributedto In November 2020, Bell Canada renewed its short form base shelf In November2020,BellCanadareneweditsshortformbaseshelf increasing theaveragetermtomaturity11.8 years. Thenetproceeds form baseshelfprospectus. total of$4.0 billion ingrossproceedsfromtheissuanceCanadaof be Non-GAAP financial measures andkeyperformanceindicators(KPIs) -Netdebt fully and unconditionally guaranteed by BCE. Consistent with fully andunconditionallyguaranteedbyBCE.Consistentwith Annual AdvisoryVoteonExecutiveCompensation Share OwnershipGuidelinesforDirectorsandExecutives Code ofBusinessConductandEthicsProgram Robust SuccessionPlanning Board RiskOversightPractices Formal BoardEvaluation Process Directors’ TenureGuidelines Board InterlocksGuidelines BCE.ca. to time until December 16, 2022. The debt securities time untilDecember16,2022.Thedebtsecurities sedar.com ) andfurnishedtotheU.S.Securities Bell Canada to offerup$6billion certain BCE In c . 2020Annu early redemptions a l R e of po r debt t

, | Net Net

of of 41

MD&A Overview MD&A Overview • • • • RISK GOVERNANCE FRAMEWORK seeking to ensure there are processes in place to effectively identify, seeking toensurethereareprocessesinplaceeffectivelyidentify, BOARD OVERSIGHT Fund Committee 2021,theBoardestablishedRiskandPension Effective January 1, BCE’s fullBoardisentrustedwiththeresponsibility foridentifyingand diligence, withreporting totheBoardonaregularbasis. ensure thattheyaretreatedwithappropriate expertise,attentionand overall responsibility forrisk, theresponsibility forcertainelementsof condition, liquidity,financialresultsorreputation.WhiletheBoardhas overseeing theprincipal riskstowhich ourbusinessisexposed and underlines theimportance thattheBoardassignstoriskmanagement regular updates ontheexecutionofbusinessstrategies,risksandmitigation. relevant committeethroughouttheyear, andbusinessleaderspresent across the organization. Risk information is reviewed by the Board or the across theorganization.RiskinformationisreviewedbyBoardor monitor and manage them. These processes seek to mitigate rather monitor andmanagethem.Theseprocessesseektomitigaterather in the future that could have a negative effect on our business, financial in the future that could have anegative effect on our business, financial the risk oversight program is delegated to Board committees in order to the riskoversightprogramisdelegatedtoBoardcommitteesinorder than eliminate risk. A risk is the possibility that an event might happen 42

The Corporate GovernanceCommittee(GovernanceCommittee) The ManagementResourcesandCompensationCommittee The AuditCommitteeisresponsible foroverseeingfinancialreporting The RiskandPensionFund Committeehasoversightresponsibility for succession planningandworkplace policies andpractices vendor and supply chain management, the environment, the pension thepension the environment, vendor andsupply chainmanagement, public disclosure ofmaterialinformation. Board and its committees. The Governance Committee also oversees Board anditscommittees.TheGovernance Committeealsooversees (Compensation Committee) oversees risks relating to compensation, (Compensation Committee)oversees risksrelatingtocompensation, governance guidelines and determining the composition of the oversight of of itsCharter, the matters suchas receives areport onsecuritymatters,includinginformationsecurity, management andprivacy, informationandphysical security,fraud, assists theBoardindevelopingand implementingBCE’s corporate and compliancewithlegalrequirements and disclosure,aswelltheorganization’s internal controlsystems at eachofitsmeetings. and disasterrecoveryplans,regulatorypublicpolicy, information assess, mitigate and report key risks to which BCE is exposed. the organization’s ethics and policies concerning business conduct, fund, and other risks as required. The Risk and Pension Fund Committee the organization’s riskgovernanceframework, whichexiststoidentify,

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BCE In Committee Audit Audit c . 2020Annu risks relatingtobusinesscontinuityplans,workstoppage ,

succeeding thePensionFund Committee, environmental, social and governance (ESG) matters, environmental, social andgovernance(ESG)matters, Compensation Compensation a Risk andPensionFund Committee l R Committee e po r of Directors t Board Board Governance Governance Committee Pension Fund Committee is tasked with is taskedwith Risk and Risk and which further which further As part The President and CEO, selected by the Board, has set his strategic focus The President andCEO, selected bythe Board, hassethisstrategic focus There isastrongcultureofriskmanagementatBCEthatactively Although theriskmanagementframeworkdescribedinthissection 1.5 is support functions that provide independent expertise to reinforce RISK MANAGEMENTFRAMEWORK RISK MANAGEMENTCULTURE financial resultsorreputation. part of how the company operates on a day-to-day basis and is woven promoted bythe Board, the Risk and Pension Fund Committee and the While the Board isresponsible for BCE’s risk oversightprogram, President and CEO, at all levels within the organization. It has become a President andCEO,atalllevelswithintheorganization.Ithasbecomea of those strategic imperatives. While the constant state of change in of thosestrategicimperatives.Whiletheconstantstatechangein discipline andbalanceinallaspectsofourbusiness. expectations, riskmanagementandintegrityinexecutionensures of theorganization’s strategicimperatives. can be thought of as a “three lines” approach to risk management. can bethought ofas a “three lines” approach to risk management. of riskandcontrolwithintheorganization.Collectively,theseelements committees asrequired,withanindependentperspectiveonthestate operational businessunitsarecentraltotheproactiveidentification need to be managed, clarity around strategic objectives, performance need tobemanaged,clarityaroundstrategicobjectives,performance management aroundthefactorsthatcouldimpact theachievement material adverse effect on our business, financial condition, liquidity, material adverseeffectonourbusiness,financialcondition,liquidity, a be sufficienttopreventtheoccurrenceofeventsthatcouldhave aligned withindustrypractices,therecanbenoassurancethatitwill and support totheoperationalbusinessunitsandcorporate support and management of risk. They are supported by a range of corporate into its structure and operating principles, guiding the implementation into itsstructureandoperatingprinciples,guidingtheimplementation implementation of risk management approaches in collaboration with the economic environment and the industry creates challenges that the economicenvironmentandindustrycreateschallengesthat through the establishment of six strategic imperatives and focuses risk through theestablishmentofsixstrategicimperativesandfocusesrisk further element of expertise and assurance, working to provide insight further elementofexpertiseandassurance,workingtoprovideinsight the operationalbusinessunits.TheInternalAuditfunctionprovidesa functions, while also providing the Audit Committee, and other Board functions, whilealsoprovidingtheAuditCommittee,andotherBoard Business Units functions Operational Operational 1st line 1st line

ENVIRONMENT Oversight functions Committees RISK AND CONTROL 2nd line 2nd line s Board and Board and Corporate upport

a function ssurance ssurance 3rd line 3rd line Internal Internal Audit

The first line refers to management within our operational business The firstlinereferstomanagementwithinouroperationalbusiness As risks emerge in the business environment, they are discussed in a theyarediscussedina As risksemergeinthebusinessenvironment, 2020, multiplebusinessunitsandadiverseportfolio ofrisksthatis social licencenecessarytoachieveourbusinessobjectives.For more section 1.6, strategic planningsessions,managementpresentationstotheBoard segments (BellWireless,BellWirelineandMedia),whoareexpected FIRST LINE–OPERATIONAL BUSINESSUNITS SECOND LINE–CORPORATE SUPPORTFUNCTIONS Governance Policy whichencompasses theprotectionandappropriate Legal,CorporateCorporate Security,Corporate RiskManagement, privacy anddataprotectionlawsbeingenactedinCanadaaround portfolio Responsibility, HumanResources,RealEstateandProcurement. BCE is a verylargeenterprise,with50,704 employees asatDecember 31, Management is also responsible for maintaining effective internal Regulatory function: on, thecorporate functionsthatmakeupthesecondlineforsupport operational management works collaboratively with,andalsorelies data custodiansandotherrelevant employeestoensure thispolicy is governance programrelieson efficiency, scale and consistency.to While the first line is often central controls andforexecutingriskcontrolproceduresonaday-to-day degree of accountability and transparency in support of our risk discipline andprecisionassociatedwiththisprocess,coupled organization, it is common to manage certain functions centrally for organization, it is common to manage certain functions centrallyfor evolving constantly basedoninternalandexternalfactors.Inalarge use ofdataacrossitslifecycle.A significantelementofthedata below and these two functions are working jointly with data owners, withdataowners, below andthesetwofunctionsareworkingjointly basis. Eachoperationalbusinessunitdevelopsits own operatingcontrols number ofregularforumstosharedetailsandexploretheirrelevance management practices. and proceduresthatfittheneedsofitsuniqueenvironment. and reporting ofrisksatalllevels.Formal riskreporting occursthrough across the organization. Executive and senior management are integral applied approach todatagovernanceisessentialmaintainingthe appropriately implemented.Werecognizethatastrongandconsistently and theRiskPensionFund Committeeduringtheyear. and formalenterpriseriskreporting, whichissharedwiththeBoard information onourapproach toprivacy anddatasecurity,referto in theseareas.Thesecorporate functionsincludeRegulatory,Finance, identification andmanagementofbusinessrisks,inmanyinstances involving The theorganization’s executiveandseniormanagement. the world. BCE has developed, and will maintain, an enhanced Data the world.BCEhasdeveloped,andwillmaintain,anenhancedData mitigation to theseactivitiesindrivingtheidentification,assessment, the alignmentandfocusaroundperformancegoals,createsahigh that underpinthem.Thereareregularreviewsofoperatingperformance to understandtheiroperationsingreatdetailandthefinancialresults , includinganexpanding rangeofobligations Environmental, socialandgovernancepractices This functionisresponsible for the regulatory the Corporate Security activities outlined Corporate Securityactivitiesoutlined in new set outinnew , inthisMD&A. senior managementparticipate inarisksurveythatprovides an supporting systems,therecanbenoassurancethatthesecuritypolicies strategies intendedtoseekmitigatetheorganization’s risks.For systems andnetworks.Weevaluate andseektoadaptoursecurity which include financial performance management, externalreporting, which includefinancialperformancemanagement, Corporate Securityleveragesitsexperienceandcompetenceand, Corporate Security function: Canadian securitieslegislation,includingtheestablishmentand Corporate RiskManagementfunction: first and second lines, thereby seeking to ensure that there is a clear first andsecondlines,therebyseeking toensurethatthereisaclear policies. Inhighandemergingriskareassuchasinformationsecurity, performance requiredacrosstheorganizationthroughsecuritypolicy practices relatedtotheU.S. and oversight and execution capital management, pension management, potential information security breaches. In addition, although BCE has policies andproceduresdesigned toprotectourinformationand Finance function: has also established and maintains disclosure controls and procedures critical in building and operating the oversight mechanisms that bring critical inbuildingandoperatingtheoversightmechanismsthatbring definitions andmonitorstheorganization’s performanceagainstthese on thisunderstanding,Corporate Securitysetsthestandardsof of security, which requires a deep understanding of the business, the control over financial reporting anddisclosurecontrols procedures, of anyinformationsecuritybreach. costs, damages,liabilitiesorlossesthatcouldresultfromtheoccurrence can benoassurancethatanyinsurancewemayhavewillcoverthe contracted aninsurancepolicy coveringinformationsecurityrisk, there understanding ofemergingrisks, theirrelevance totheorganization risk environment and the external stakeholder environment. Based Based risk environment and the external stakeholder environment. refer totheProxyCircularandsection10.3,Effectivenessofinternal reported onatimelybasis.For moredetailsconcerningBCE’s internal maintenance ofappropriate internalcontroloverfinancialreporting. BCE respond to attempts to gain unauthorized access to our information securitymonitoringandtesting,tohelpidentify management, are deployedwiththeappropriate levelofcontrolbasedonriskand and theproposed mitigationplans. assessment of its principal risks and the related exposures. Annually, and procedures that we implement will prevent the occurrence of all and proceduresthatweimplementwillpreventtheoccurrenceofall and scaleofourbusiness,networkinfrastructure,technologyIT assets inlightofthecontinuouslyevolving natureandsophisticationof and proceduresthatseektomitigateinformationsecuritythreats.We controls ofthisMD&A. In addition to the activities described above, the second line is also In additiontotheactivitiesdescribedabove,secondlineisalso its business risks, is accurately recorded, processed, summarized and its businessrisks,isaccuratelyrecorded,processed,summarizedand important referencepoint intheoverallriskassessmentprocess. information securitythreats.However, giveninparticular thecomplexity implementation controlswiththeobjectiveofensuringthatsystems instance, wehaveimplementedsecurityawarenesstrainingandpolicies focus torelevant areasofriskandreinforcethebridges betweenthe to seek to ensure that the information it publicly discloses, including to seekensurethattheinformationitpubliclydiscloses,including to identify, assess and manage risks through a number of activities, the company togatherinformationandreport ontheorganization’s vulnerability technical capabilities, including access management, further relyonsecurityassessmentstoidentifyrisks,projectsand through collaboration with the operational business units, develops BCE’s Financefunctionplaysapivotal roleinseeking Sarbanes-Oxley Actof 2002 This function is responsible for all aspects BCE In This function works across This functionworksacross c . 2020Annu andequivalent a l R e po r t

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MD&A Overview MD&A Overview The Board has established clear lines of authority and oversight over The Boardhasestablishedclearlinesofauthorityandoversightover This approach alsosupports ourgoalofadvancing howCanadians To furthercoordinateeffortsbetweenthefirstandsecondlines,BCEhas 1.6 Since 2010,theBell Let’s Talk mentalhealthinitiativehasbuiltawareness COMMUNITY UNDERPINS OUR CORPORATE RESPONSIBILITY security and business continuity. The Compensation Committee has security andbusinesscontinuity.TheCompensationCommitteehas strategic imperativesthatinformBCE’s policies, decisionsandactions. service providersandothercareresearchorganizations. seriously ourresponsibility to managethecompany inwaysthat safety risksandopportunities. Thiscross-functionalcommitteeseeks WHY MENTAL HEALTH MATTERS worldwide have taken the mental health conversation started by Bell worldwide havetakenthementalhealthconversationstartedbyBell workplace mentalhealth.Overthelast11 years, Canadiansandpeople Corporate responsibility isafundamentalelementofeachthesix Canadians connect with each other and the world. We take very Oversight Committee(HSSECCommittee).Asignificantnumberof practices, healthandsafety.TheGovernanceCommitteeisresponsible primary accountabilityatthecommitteelevel.TheRiskandPension With theCOVID-19 crisis affecting everyaspectofourlives,theCanadian Fund CommitteeoverseesESGissues Mental HealthAssociationreports that40%ofCanadianssaytheir Let’s Talk to remarkable heights each year, driving unprecedented ESG practicesformanintegralpart ofBCE’s corporate responsibility BCE’s mostseniorleadersaremembersoftheHSSECCommittee, of Colour (BIPOC) communities, and those faced by youth, have also of Colour(BIPOC)communities,and thosefacedbyyouth,havealso change inmentalhealth.To date,BellLet’s Talk hassupported more oversight for human resources issues, including respectful workplace our corporate responsibility programs and our ESG practices, with established aHealthandSafety,Security,EnvironmentCompliance connect witheachotherandtheworld. underscored the need to address mental illness in new ways as well as underscored the need toaddressmentalillnessinnew waysaswell mental healthhasdeclineddueto business unitemployeesatthevice mandates thecompany’s EnergyBoard,aworkinggroupcomposed of around mental illness while improving access to care, research and around mentalillnesswhileimprovingaccesstocare,researchand and actioninCanadianmentalhealth,helpingreducethestigma approach. Sinceitsfoundingin1880,BellhasbeentheCanadian are supported withsufficientresources.The HSSEC Committee also activities arewellintegratedandalignedacrosstheorganization leader intelecommunicationsandtodayourgoalistoadvance how information security),compliance,environmental,andhealth the important rolewecanallplay inputtingthefocusonmental health. time, themental health challenges within Black, Indigenous and People throughout Canada,includinghospitals,universities,localcommunity than 1,100 organizations providingmentalhealthsupport andservices for governancepracticesandpolicies, overviewofourESG to ensurethatrelevant risksareadequatelyrecognizedandmitigation the purpose ofwhichistooverseeBCE’s strategicsecurity(including 44

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BCE In nvironmental, social and governance practices and social nvironmental, E c . 2020Annu a l R e po r t

the COVID-19pandemic ‑ president and director levels, to president anddirectorlevels,to , including environmental risks, includingenvironmentalrisks, strategyand . At the same . Atthesame

support the mental health and well-being of BIPOC communities across sustainability indicesanditsreceiptofawards.In2020,BCE THIRD LINE–INTERNALAUDITFUNCTION WHAT WEAREDOING Canada with inaugural donations totaling $500,000 to BlackYouth Canada withinauguraldonations totaling$500,000 to young peoplethroughIntegratedYouth Services(IYS)hubs.Later that people, and make a significant contribution to the broader Canadian people, andmakeasignificantcontributiontothebroaderCanadian We report annuallyonourcorporate responsibility performanceand Help Phone, Revivre and Strongest Families Institute, to enhance their Helpline andtheNationalAssociation ofFriendship Centres. Foundation to accelerate the delivery of mental health services for BCE isrecognizedaroundtheworldforeffectivenessofitscorporate BCE.ca community andeconomy. challenges duringtheCOVID-19 crisis. efforts tosupport Canadiansconfrontingisolation,anxietyandother communications needs of millions of customers, seek to create value enable us to sustain our record of serving the personal and business evaluations of the company’s to support risk and control environment, other Boardcommitteesasrequired,andmanagementwithobjective control systemandhastheresponsibility toactasanindependent objective ofminimizingfinancialandreputationalriskswhile maximizing ensure oversight of our overall energy consumption and costs with the continued tobelistedonsociallyresponsible investmentindicessuchas our stakeholdersandwhichcouldhavearelevant impact onourbusiness. our ESGpracticesin disclosure aswellpolicies concerningbusinessconductandethics. month, Bell Let’s Talk announced an additional $5 million in donations an auditpresencethroughoutBCEanditssubsidiaries. management infulfillingBCE’s strategicimperativesandtomaintain business opportunities. responsibility andESGprograms, asreflectedin itsinclusionin various appraisal function. Its purpose is to provide the Audit Committee, and launchedanew$10 million partnership withtheGraham Boeckh Internal Auditisapart oftheoverallmanagementinformationand In July 2020, Belllaunchedthe$5 million BellLet’s Talk DiversityFund to Bell extendedBellLet’s TalkIn March 2020, foranother In addition,in2020,theCompensationCommitteeintroducedametric Index (ESI)ExcellenceGlobal,andtheEuronextVigeoWorld 120 index. to the Canadian Red Cross, Canadian Mental Health Association, Kids to theCanadianRedCross,MentalHealthAssociation,Kids for shareholders, provide meaningful careers for tens of thousands of for shareholders,providemeaningfulcareerstensofthousands the FTSE4Good Index, the Jantzi Social Index, the Ethibel Sustainability the FTSE4GoodIndex,JantziSocialEthibelSustainability to trackcorporate performance againstourESGtargets. SIX SIX . Wereport ontheESGtopicsthatareofgreatestimportance to STRATEGIC IMPERATIVES C orporate R esponsibility R eport, available on eport, five years years Jack.org Chaptersinhundredsofcommunitiestosupport themental January 2021 saw a number of significant donations made by Bell sawanumberofsignificantdonationsmadebyBell January 2021 To executeonourstrategicimperatives,werelytheengagement and Talk 140 years. Ournetworksandservicesarefundamentaltothesuccess Society increasinglydependsupon communicationsnetworksand SOCIETY TEAM MEMBERS TEAM services foreducation,work, healthcare,entertainmentandtostay society asawhole.Weworkcloselywithgovernments,regulatorsand WHAT WEAREDOING WHY DIGITAL ACCESSMATTERS world. It has never been more critical for all Canadians to have ready world. IthasneverbeenmorecriticalforallCanadianstohaveready Canadian collegesanduniversities;a further$1 million inDiversityFund Nova theCHUSainte-JustineFoundation Scotia;and$300,000 to to Despite manychallengesin2020,wealsomaintained Bell isCanada’s leadingcommunicationscompany withrespectto Being anengagedcorporate citizenhasbeencentraltoouridentityfor health ofyoungpeople;$420,000 to theQEIIFoundation tointroduce of creatingasafeandinclusiveatmosphere forallteammembers. evolving business environment. Throughworkplace evolving wellnessinitiatives businessenvironment. experience thatdriveseffectiveness,highperformanceandagilityinour expertise ofourteammembers.Wefocusonattracting,developingand continuing withall-fibrenetworkdeploymentsinthe commitment toinvestmentinourall-fibrenetwork. Inadditionto other mobilecontent. our customerstomaximizethesesocietalbenefits. of thecommunitiesweserve,nation’s economyandCanadian grants to usage ofmobilevideo, socialmedia, IoTbusinessapplications and across Québecbeingtreatedforaneatingdisorder. repetitive transcranialmagneticstimulation(rTMS)at and workonlyreinforcesthispoint. retaining the best talent, aswellcreatingapositive teammember retaining thebesttalent, number ofcustomersusingfeature-richsmartphonesandaccelerating researchanddevelopmentinnovation, with network investment, research; $2.5 million for anewBellLet’s Talk Post-Secondary Fund for and by celebrating diversity in the workplace, we reinforce our goal and Winnipeg,Manitoba,earlyintheyear. and servicestoourcustomers.OurLTE wireless networkisrenownedas access tomoderndigitalinfrastructure.TheCOVID-19 crisis thatbegan Island ofMontréal,welaunchednewall-fibrebuildsinHamilton,Ontario, launch an intensive ambulatory care pilot program for young people launch anintensiveambulatorycarepilotprogramforyoungpeople informed and engaged with friends, neighbours and the rest of the informed andengagedwithfriends,neighbourstherestof in 2020 and brought about fundamental changes to the way we live in 2020 in the industry-leading capitalexpenditurestoprovideadvanced networks the fastest in Canada, and has driven rapid growth in recent years in the the fastestinCanada,andhasdrivenrapidgrowthrecentyears – Brain Canada Mental Health Research Program to accelerate brain Brain CanadaMentalHealthResearchProgramtoacceleratebrain lead up eight to BellLet’s Talk Day,including:the$ organizations; $500,000 to helpexpand thereachof organizations; $500,000 to 2 million BellLet’s million two hospitals in GTA our strong and on the and onthe 5 cents more to mental health programs for every eligible text, call call more to mental health programs for every eligible text, 5 cents 50 and 10 At the outset of the COVID-19 pandemic and tospecifically help address Adding thefundingamountoflatestBellLet’s Talk Daytothe sharing 159,173,435 messages ofsupport anddriving$7,958,671.75 in set all-newrecordsforengagementinthementalhealthconversation, success, enabling our goal of advancing how Canadians connect with network coverage coverage network LTE-advanced KEY METRIC KEY METRICS WHY ENGAGEMENTMATTERS (1) On January 28, 2021 –BellLet’s Talk Dayitself–whenBelldonates On January 28, 2021 Our highly skilled team members are a key competitive differentiator Our highlyskilledteammembers are akeycompetitivedifferentiator We believethateveryonedeservesarespectful,positive, professional Manitoba. H households, including new deployments in Atlantic Canadainthe households, includingnewdeploymentsinAtlantic original Bell Let’s Talk commitment of $50 million in 2010, along with the each other and the world, while also making a difference in communities each otherandtheworld,whilealso makingadifferenceincommunities dynamic andengagedteam.TheBell teamiscriticaltoourcompany’s new mentalhealthfundingbyBell. needs inruralareas,wealsorampedupdeploymentofourW now committed $121,373,806.75 to improving Canadian mental health. results ofthefirsttenBellLet’s Talk Daysandtheadditional $5 million rollouts inthesecondhalfofyeartoreachanadditional80,000 rural and ruralcommunitiesacross approached 50%ofourtarget1millionlocationsinsmallertowns and social media interaction, Canadians and people around the world and socialmediainteraction,Canadianspeoplearoundtheworld across thecountry. Engag and rewarding work environment. is a strategic imperative which recognizes that our success requires a is astrategicimperativewhichrecognizesthatoursuccessrequires a funding committed in response to the COVID-19 pandemic, Bell has Bellhas funding committedinresponse totheCOVID-19 pandemic, the service in many areas, increasing download and upload speeds to the serviceinmanyareas,increasingdownloadanduploadspeedsto the end of April 2020. We also pushed forward an important upgrade to fall. As at December 31, 2020,ourbuildoutofWireless fall. AsatDecember 31, for usinadynamic andfast-changingmarketplace. at December 31

91% 81 20 19 18 ome opulation dataisbasedonthe 2016 censusconductedbyStatisticsCanada. P I nternet 94% , respectively, by late 2020. We continued to accelerate Mbps, respectively,bylate2020.Wecontinuedtoaccelerate (1)

service to reach 137,000 additional rural households by 96%

Ontario, Canadaand Québec,Atlantic 9.5M Fibre and WTTP footprint footprint WTTP and Fibre (homes andbusinessespassed) at December 31

81 20 19 18 ing BCE In and invest 10.0M c . 2020Annu 10.3M ing H in our people in our people ome a l R e I po nternet ireless ireless r t

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MD&A Overview MD&A Overview engagement score Overall team member KEY METRICS WHAT WEAREDOING WHAT WEAREDOING WHY DIVERSITYANDINCLUSIONMATTERS (1) where all Our diversityandinclusionstrategyissupported byastronggovernance We are focused on attracting, developing and retaining the best talent in We arefocusedonattracting,developingandretainingthebesttalentin Family-Friendly EmployersandoneofCanada’s GreenestEmployers. Employers, Canada’s Top EmployersforYoung People,Canada’s Top Bell iscommittedtoaninclusive,equitableandaccessibleworkplace Montréal, whereBellwasfoundedin1880.Aspart ofourcommitmentto has beenrecognizedbyMediacorpasoneofCanada’s BestDiversity health andwellnessbenefitsaflexibleworkour policy.Reflecting committees andemployee-lednetworks mental health,wesupport andinvestinourpeoplewithcomprehensive ranked asoneofCanada’s Top Employersbothacross Canadaandin rewarding whichenablescreativityandinnovation . Weareproudtobe at Bell,PrideBellandWomen atBell. inclusive workplace fostersinnovation andcreativity,betterreflects framework that includes the Diversity Leadership Council, business unit framework thatincludestheDiversityLeadershipCouncil,businessunit focus onensuringaninclusive,equitableandaccessibleworkplace, Bell the countrybyprovidingaworkplace that the customers we serve, and increases team member engagement. the opportunity toreachtheirfullpotential. Atrulydiverseteamand 46 74%

81 20 19 18

This metriciscalculatedastheaveragescoreobtainedinannualBellteammember to thesequestionsoutofthetotalnumberemployeeswhoresponded tothesurvey. and thepercentageofemployeeswhoresponded favourably (StronglyagreeorAgree) satisfaction survey.TheTeamMemberEngagementscoreisbasedonfivespecificquestions |

BCE In 73% c team members . 2020Annu 76% a l R (1) e po

feel valued, respected,supported andhave r t

, including: Black Professionals including:BlackProfessionals is positive, professional, and and

• • • • • 35% womeninexecutivepositions (vice-presidentlevelandabove)by executive positions in Women KEY METRICS ( ( Looking ahead, we plan to continue building momentum for our diversity 29% our seniorleadership. BellisasignatoryoftheCatalystAccord 2022 diversity, wearestrategicallyfocusedonincreasingthediversityof at ourcompany andinourcommunities. and inclusionstrategybasedonconcreteobjective and memberofthe30%Club. Wehaveestablishedagoalofatleast In stepwithouroverarchingcorporate commitmenttoimprovegender In 2020, Bell committed to taking meaningful actions to address the (vice-president levelandabove) impacts ofsystemicracismon integration ofinclusiveleadershippractices. the endof2021.

1 2

81 20 19 18 30% completionwithinthefirstyear. A new $5 million BellLet’sA new$5 million Talk DiversityFund tosupport themental partnership withBIPOCTV&Film Reinforcing ourcultureofinclusionwithreviewinternalpolicies HireBIPOC website and the Promoting greaterdiversityinCanadianmediawiththelaunchof New partnerships withtheOnyxInitiativeandBlackProfessionals New targetsfor Development Program to people leaders, exceeding our goal of over Development Program to people leaders, exceeding our goal of over health andwell-being and practices,successfullaunchoftheInclusiveLeadership and universitystudentspromoteBlacktalentintechnology in Tech Network that are helping drive the recruitment of Black college in Tech Network that are helping drive the recruitment of Black college team ofatleast25%,and40% ) ) istheresultofappointments madetotheBCEBoard to 2020 ariation from 2019 Based ondirectornomineesforelectionatBCE’ annual inanticipation oftheretirementsthree during theyear 2020 The v shareholder meeting. 2 32% 32%

BIPOC of Canada’s BIPOCcommunities representation on our senior management representation onourseniormanagement Bell MediaContent Diversity Task Force in blacks, indigenous and people of colour blacks,indigenousandpeopleofcolour graduate andstudent directors on the BCE Board the on directors non-executive Women

31% 81 021 20 19 18 s 2021 annualshareholdermeeting.

This included: 31% - directors at the 2021 directors atthe 2021 27% setting and the setting andthe hires by2025 (1) nominees (2) Director 36% A changingclimatecanleadtoincreasedrisksforanybusiness– ENVIRONMENT same. To fight climate change, we are focused on reducing our energy and it has system (EMS) to help with this continuous improvement, values, aswelltheexpectationsofcustomers,investorsandsociety WHAT WEAREDOING (1) CHANGE MATTER WHY ENERGYMANAGEMENTANDCLIMATE (4) (3) (2) we risk increased costs from fines or restoration, and we may lose we riskincreasedcostsfromfinesorrestoration,andmaylose Our team members, our customers and our investors expect that we Our teammembers,ourcustomersandinvestorsexpectthatwe first NorthAmericantelecommunicationscompany tobesodesignated. providing our customers with technologies that help them address providing our customerswithtechnologiesthathelpthemaddress We are taking action both to help fight climate change and adapt to its We aretakingactionbothtohelpfightclimatechangeandadaptits We have been implementing and maintaining programs to reduce the Environmental Policy, firstissuedin1993,reflectsourteammembers’ health andsupply chainscouldsuffermajornegativeimpacts from climate change.Webelievethatwehaveanimportant roletoplayin our operationsandcreatepositive impacts wherepossible. Ifwefail consequences. We adapt by taking action to maintain our resiliency consequences. Weadaptbytakingactiontomaintainourresiliency climate changeandadapttorelatedimpacts ontheirbusinesses. environmental impact Our ofouroperationsformorethan25 years. management systemwascertifiedISO50001 maintained thiscertificationsincethen.Inaddition,BellCanada’s energy been certifiedISO14001 business thatneedstobemanagedsystematicallyunderacontinuous risk losing our valuable team members and customers to competitors, regard environmentalprotectionasanintegralpart ofdoingbusiness and thatweseektominimizethenegativeenvironmentalimpacts of including financial,operationalandreputational improvement process.Weimplementedanenvironmentalmanagement in the face of climate change, and are helping our customers do the in thefaceofclimatechange,andarehelpingourcustomersdo investors, allofwhichcouldimpact ourbusiness. telecommunications company to be so designated. We have continuously that weregardenvironmentalprotectionasanintegralpart ofdoing to take action to reduce our negative impacts on the environment, we we to takeactionreduceournegativeimpacts ontheenvironment, ISO 14001 certification covers Bell Canada’s oversight of the environmental management system associated with the development of policies and procedures for the delivery of landline, Performance isbasedonenergyconsumption andnetworkusagedatafromJanuary Operational GHGemissionsincludescope Our ISO50001 This metric excludes ourBellMTS division. compare impacts carrierperformance. theamount ofGHGitemitsandhowthoseemissions arecalculatedandclassified,theratio itselfcannotbeusedtodirectly model directly in Canada and on international roaming partners’ networks. As the methodology for gathering network usage differs from one carrier to another, and because a company’s business Internet dedicated(BID), the reporting year. business thepreviousyeartoSeptember 30 of Network usageincludesresidentialandwholesaleInternet, consumption andnetwork usagedatafromOctober 1 of steamandcooling. are indirectemissionsassociatedwiththeconsumption ofpurchasedelectricity,heat, digital mediaservices,landline,wireless, functions. wireless, TVandInternetservices,broadband andconnectivityservices,datahosting,cloudcomputing,radio broadcasting and digital media services,alongwithrelatedadministrative Our certification coversBellCanada’s energymanagementprogramassociated withtheactivitiesofrealestatemanagementservices,fleetradiobroadcasting and VPN , IPTV, Inter-NetworkExchange(INX),prepaid and postpaid wireless services, since 2009, making us the first Canadian (1) since2009,makingusthefirstCanadian TV 1 andscope2emissions. Scope 1 GHG emissionsaredirectfromsourcesthat areownedor controlled byBell.Scope2 GHG emissions , Internetservices,connectivity,broadband datahostingandcloudcomputing,inadditiontorelatedgeneraladministrativefunctions. in 2020, making us the (2) in2020,makingusthe risks . Moreover, public 1 to December 31 of calendar years2014to2017.Startingin2018,performanceisbasedonenergy stakeholders thatwetaketheseinitiativesseriously.Since2004, our network usage usage network our our of ratio the Reduce voluntary and consistent climate-related risks and opportunities KEY METRIC we believethatreporting regularlyonourenergyperformanceand we obtained an A- score, recognizing our work on climate action, we report onourclimatechangemitigationandadaptationefforts Climate-related Financial Disclosures (TCFD), which has developed Climate-related FinancialDisclosures(TCFD),whichhasdeveloped Operational of our operational GHG emissions (3) to our networkusage objective. Whileweworktosetanewlong-termobjective,an disclosures. In2019,wesurpassed our 2020 GHGemissionsreduction our climate disclosures. Furthermore, we support and report on the our alignment with current best practices and the transparency of consumption while also helpingcustomers reduce theirs. In addition, recommendations oftheFinancialStabilityBoard’s Task Force on related riskandopportunities f a non-for-profitorganizationthatgathersinformationonclimate- associated greenhousegas(GHG)emissionsdemonstratestoour interim GHGreductionobjective through the CDP (formerly known as the Carbon Disclosure Project), through theCDP(formerlyknownasCarbonDisclosureProject), to becarbonneutralforour weaddedanewobjective,whichis from 2019levels.InMarch 2021,

135 41 61 81 20 19 18 17 16 15 14 80 Wireless Home Internet, Voice-over-LTEWireless HomeInternet, emissions (tonnes)dividedbynetworkusage(petabytes) 53 47 operational operational r om organizations worldwide. In 2020, om organizationsworldwide.In2020, to reduce by the end of 2021 the ratio toreducebytheendof2021ratio 36 traffic,IoT, andenterpriseusage,both emissions startingin2025. BCE In GHG emissions to to emissions GHG 29 c . 2020Annu 19 a l R by 40% (4) by 40% e po r t

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MD&A Overview MD&A Overview 2020. Weareexploringnewtargetsforthefuture. PRIVACY INFORMATION AND SECURITY support ournewDataGovernancePolicy. WHAT WEAREDOING WHAT WEAREDOING WHY DATA GOVERNANCEMATTERS WHY RECOVERINGE-WASTEMATTERS we surpassed our goal of recovering 10 million used TV receivers, we surpassed our goal of recovering 10 million waste (e-waste). E-waste disposal is a global issue with global attention. Our relationshipwithcustomersprovidesanopportunity forproduct programs, drop boxes and mail-in instructions for customers. In 2020, programs, dropboxesandmail-ininstructionsforcustomers.In2020, properly addressthisissue. We recognize that toachieveourgoal of advancing howCanadians We haveimplementedaneffectivenationalprogramformanaging Last year, weadoptedan enhanced DataGovernancePolicy thatbrings Privacy andinformationsecuritypresentbothpotentially significantrisks BCE thereforefaceincreasingregulatorycompliancerequirements Due totherapidobsolescenceofcommunicationsdevices,particularly economy. Theyarethesubjectofanexpanding rangeofobligations e-waste recycling,reuseanddisposal, includingnationaltake-back consequences forourcompany. of theirdatacanhavenegativereputational,businessandfinancial customer expectationsregardingtheappropriate useandprotection data againstinformationsecuritythreats.Conversely,failuretomeet on respecting the privacy of our customers’ data and protectingsuch governance iscriticaltomaintainingthatsociallicencebyfocusing connect witheachotherandtheworld,wemustmaintainsocial use itforpurposes thatadvance theirinterests,andkeepitsecure. records management. Ourapproach todatagovernanceencompasses records management. andtheendof modems andmobilephonesbetweenJanuary 1, 2016 related toe-waste.Thereisalsoariskourreputationifwedonot recycling, reuse and disposal. Telecommunications companies like mobile phones,theyrepresentanincreasingproportion ofelectronic are incorporating datagovernanceproactivelyasacoreconsideration areas ofprivacy, informationsecurity,dataaccessmanagement and and aroundtheworld.Ourcustomers,teammembersinvestors and significantopportunities foranybusinessoperatinginthedigital licence from our customers and all Canadians to collect and use data licence fromourcustomersandallCanadianstocollectusedata in allourbusinessinitiativesandtechnologydecisions. increasingly expectustodemonstratethatwecollectdataappropriately, in newprivacy anddataprotection laws beingenactedinCanada in our operations. A strong and consistently applied approachin ouroperations.Astrongandconsistently todata target to develop and deploy enhanced data governance training to target todevelopanddeployenhanceddatagovernancetraining to the protectionandappropriate useofdataacrossitslifecycle,andwe together multiple existing policies and programs inthe interrelated 48

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BCE In c . 2020Annu a l R e po r t Thisyear, we 2.2M As discussed above, we have set successful, security awareness must influence design, development successful, security awareness must influence design, development service, aligning with our strategic imperative to operate with agility service, aligningwithourstrategicimperativetooperateagility Cumulative r Cumulative and mobile phones KEY METRIC KEY METRIC WHAT WEAREDOING WHY INFORMATION SECURITYMATTERS Our operations, service performance, reputation and business continuity Our operations,serviceperformance,reputationandbusinesscontinuity protection. practices withagoalofbeinggloballeaderinthetelecommunications programs indirectresponse toevolving securitythreats.Throughthese parties. Preventingsuccessfulcyberattackslimitsbothfinancialand hackers, organizedcriminals,state-sponsored organizationsandother embed security in all aspects of what we do with a focus on data embed securityin allaspects ofwhat wedowithafocus ondata enhancements, we help shape industry security and risk management continuously enhanceourprevention,detectionandremediation depend onhowwellweprotectourdata,networksandITsystems by-design culture through an awareness program helping employees by-design culturethroughanawarenessprogramhelpingemployees and operationsacrossthecompany. Accordingly,wedriveasecurity- and costefficiency. In ordertoseekprotectourdataandunderlyingassets,we legal exposure associated with remediation efforts and recoveryof industry, andatrustedpartner toourcustomers. Inordertobe training toallapplicable teammembersacrossBellby theendof2021. target: complete the roll from agrowing landscape of sophisticated threat actors, including from informationsecuritythreats.Ourindustryisparticularly atrisk for

61 81 20 19 18 17 16 2021. 4.7M To set our first information security that end, we have recently ecover 7.1M out ofourBeCyberSavvy Information Security y of 9.6M used TV receivers, modems modems receivers, TV used our first information security target our first information security target 11.7M 2 • • • • This sectioncontainsforward-lookingstatements,includingrelatingto 2.1 support ourgoaltoadvance howCanadiansconnectwitheachother andtheworld. 2020 PROGRESS Our successisbuiltontheBCEteam’s dedicatedexecutionofthesixstrategicimperatives that objectives, plansandstrategic

• • • • Accelerated the rollout of our innovative speeds, withinitialserviceinMontréal,the support thesehigherspeeds. speeds of25 to speeds ofupto1.5 Gbps inselectmarkets(expectedaveragedownload with faster speeds expected in the future as equipmentevolves to COVID-19 demand Canada andexpanded servicetoruralAtlantic Continued to expand our FTTP direct fibre footprint, reaching directfibrefootprint, Continued toexpand ourFTTP population attheendof2020. Launched our 5G wireless network, offering enhanced mobile data Expanded our LTE-A wirelessnetwork toreachapproximately 96%of FTTP delivers FTTP and Vancouver. Our5Gnetworkexpanded toreach26%ofCanada’s approximately 5.6 million homesandbusinessesinsevenprovinces. the Canadianpopulation withtheoreticalmobiledatapeakdownload to previously unserved or underserved communities in response to

50% of our target of 1 million 50% ofourtarget1 million As with previous wireless and wireline network deployments, Bell is As withpreviouswirelessandwirelinenetworkdeployments,Bellis At theendof2020,ourbuildout As part ofBell’s $1 billion investmentplanforManitoba,weannounced 200,000 residential andbusinesslocationsthroughoutthecity. speeds (50 working withmultipleequipmentsuppliers forits5Grollout. Our 5G network will expand to more centresacrossthecountryas Wireless Home Internet Manitoba of approximately $400 million in Hamilton’s digitalinfrastructure of approximately $400 million customers communities across connections to trategic imperatives trategic an investment of approximately $400 million tobringall-fibre an investmentofapproximately $400 million locations throughout Winnipeg. We also announced an investment locations throughoutWinnipeg.Wealsoannouncedaninvestment the next-generation wireless technology grows in speed and capacity. the next-generationwirelesstechnologygrowsinspeedandcapacity. that isplannedtobringdirectfibreconnectionsmorethan uild the best networks and Bell’s next-generation network leadership with continued capital investment in all-fibre home and business connections S B Exp in moreplaces,enhancedruralconnectivitywith total Mbps 319 broadband accessspeedsofupto1.5 Gbps currently, approximately Mbps) download/10 Mbps upload) to download/10 Mbps Ontario was also enhancedto deliver 50/10 access priorities. Refertothesection , Québec, locations Wireless HomeInternet 7,0 homesandbusiness 275,000 Wireless Home Internet the Atlantic provinces the Atlantic in smaller towns and rural in smallertownsandrural GTA , Calgary, Edmonton , Calgary,Edmonton a majority of approached approached Wireless HomeInternet Caution regardingforward-lookingstatements service service and and • • • • • • • our networkdeploymentandcapitalinvestmentplans 2021 FOCUS

• • study ofnetworkperformanceacrossthecountry simplifying the process for service providers requesting access to our simplifying theprocessforserviceprovidersrequestingaccesstoour Continued deployment of 5G wireless network offering coverage that Continued deployment of 5G wireless network offering coverage that Collaborated withSociétédeTransport deMontréal(STM)andindustry partners to complete deployment of 4G LTE wireless service throughout Bell’s wirelessandwirelinenetworksdelivered99.99+%service PCMag’s 2020 Fastest MobileNetworksCanada,theprestigiousannual Bell’s 4Gand5GwirelessnetworkswererankedCanada’s fastestin Further deployment of direct fibretomorehomesandbusinesses within Enabled fasteraccesstoinfrastructureadvance therolloutof Montreal’s metrotransitsystem,providingtheSTMwithCanada’s high-speed InternetservicesthroughoutQu home of an additional $1 billion to $1.2 billion over the next two years to overthenexttwoyearsto to$1.2 billion of anadditional$1 billion of thisadditionalcapitalin2021. demand for data as millions of Canadians worked and studied from demand fordataasmillionsofCanadiansworkedandstudiedfrom our wireline footprint and fixed communications support structures network rollouts. Bell expects to invest approximately $700 million network rollouts.Bellexpectstoinvestapproximately $700 million network inthecountry availability throughouttheCOVID-19 advance its direct fibre, Wireless Home Internet and 5G wireless In February 2021, Bell announced a capital investment acceleration Bellannouncedacapitalinvestmentacceleration In February 2021, largest indoor digital network and the longest underground wireless largest indoordigitalnetworkandthelongestundergroundwireless is competitivewithothernationaloperatorsincentresacrossCanada

Double thenationalcoverageofourwireless5Gnetworkto approximately 50%ofthepopulation businesses bytheendof2021 technologybyasmany900,000,bringingour and fixedWTTP Increase the number of customer locations covered with direct fibre Increase thenumberofcustomerlocationscoveredwithdirectfibre total broadbandfootprinttoapproximately 6.9 million homesand and thebuildoutofourmobile5Gnetwork. WTTP WTTP atthebeginningofthisMD&A. technology in rural communities pandemic BCE In é bec, with new measures bec, with new measures c . 2020Annu , despite increased , despiteincreased andour a l R e po r t 2021 2021

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MD&A Strategic imperatives MD&A Strategic imperatives • • • • • • • • 2.2 2020 PROGRESS 50

1.7 million customersatDecember 31, FTTP 2020 12 Series, theSamsungGalaxyS20 5G seriesandtheSamsung Galaxy 3,704,590 at December 31, 2020,up4.2%over2019,includingalmost Added 263,721 total netpostpaid andprepaid wirelesscustomers.Our 2.6% over2019. service atthevalue retailer’s morethan1,200 locations acrossCanada wireless customerbasegrewto10,221,683 at December 31, 2020,up protection frombotnets,malware,phishingattemptsandother provides anadvanced andconsistentlayerofsecurityincluding partnership with Zscaler, the Managed Cloud Security Gateway Launched Managed Cloud Security Gateway, a solution that provides Built onourposition astheleadingInternetserviceprovider(ISP) Became thefirstwirelessproviderinCanadatooffermobileconnection PC mobileprepaid serviceinmorethan84 Renewed our partnership with Loblaws to offer the newly rebranded Partnered withGiantTigertomakeLuckyMobileavailable inthe Dollarama Renewed our exclusivenationaldistributionagreementwith Note20 5G Series Expanded ourlineupof5G,4GLTE andLTE-A devicesandoffered have aniPhone our corporate customers with fully managed Internet protection conscious Canadians discount retail chain’s over 250 locations across the country, expanding members inthehouseholdtouseApple Watch eveniftheydonot across Canada as a cost-effective, hassle-free service from the cloud. Offered in as acost-effective,hassle-freeservicefromthecloud.Offeredin a broad Internet activity. in Canadawitharetailhigh-speedInternetsubscriberbaseof threats as well as blocking malicious websites and other fraudulent threats aswellblockingmaliciouswebsitesandotherfraudulent for Apple Family Setup, a service that allows kids and older family the reachofourprepaid wirelessofferingtoevenmorebudget-

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BCE In ive growth with innovative services

Dr Leverage ournetworksuperioritytoprovideinnov of next-generation IoTsolutions,smarthomeproductsandbusinesssolutionslikeVirtualNetworkServices. businesses, including the fastest Internetand best c . 2020Annu selection of5Gsmartphones,includingApple’s iPhone Inc. toofferLuckyMobileandVirginprepaid wireless a l R e po r t 0 Loblaws storelocations Wi-Fi technology, ative, integratedcommunicationsservicestoCanadianconsumersand • • • • • • • • • • • 2021 FOCUS

secure communicationstobusinessandgovernmentcustomers. solutions tolargeand such asInternet and private networks, cloud services, unified value ofconnectivityservices Continued adoptionofmobile phone devices,tablets and data Continued growthofourprepaid subscriberbase Ontario andQuébectotakeadvantage ofenhancedWi-Ficoverage, Continue to deliver network-centric managed and professional services Continue todelivernetwork-centricmanagedandprofessionalservices Continued growthinretailInternetsubscribers Maintain ourmarketshareofnationaloperators’wirelesspostpaid Launched Bell Total Business Wi-Fi, enabling small businesses in BlackBerry becameourpreferredMobileThreatDefensepartner, Partnered withBlackBerryLimited(BlackBerry)toprovideenhanced Enhance Internet product superiority through new service offerings and Enhance Internetproductsuperioritythroughnewserviceofferingsand Protect, theMobileThreatDefensesolutionthatusespower of Protect, enabling Bell to offer its enterprise customers access to BlackBerry enabling BelltoofferitsenterprisecustomersaccessBlackBerry experience andincreaseoverallbusinesscustomerspendingon communications, securityandIoTtoimprovethebusinessclient devices andnewdataservices by increasingadoptionof net additions attacks andprovideapplication integritychecking. artificial intelligence to block malware infections, prevent URL phishing applications, aswelltheintroductionof more5G,4G LTE andLTE-A Improvement in subscriber acquisition and retention spending, enabled Improvement insubscriberacquisitionandretentionspending,enabled Invest in direct fibre expansion, 5G andnew solutions inkey portfolios Increased adoption ofunlimited dataplansand innovation toprovide anenhancedcustomerexperienceinthehome the fastestspeedsavailable andaneasywaytomanagetheirnetwork telecommunications productsandservices the highest-quality mobile services and a growing range the highest-quality mobile servicesand a growingrange medium-sized device financing businesses that increase the businesses thatincreasethe plans device financing plans • • • • • • • • • • 2.3 2020 PROGRESS

Television Distribution Throwback acrosssmartphones,smartTVsandotherconnected TSN remained Canada’s sports leader and RDS remained the top 2,738,605 retail subscribers at December 31, 2020, and increased 2020,andincreased subscribersatDecember 31, 2,738,605 retail singular brandinQuébec services, andaccesstothousandsofapps inGooglePlay Crave launched HBO Max programming in Canada as part of Bell CTV2 Completed the acquisition of French-language conventional TV Grew ourCravesubscriberbasetoapproximately 2.8 million, up8% Canada forthe19th year inarow,deliveringthemostTop 10,Top 20, production communities. Bell Media acquired a minority investment production communities.BellMediaacquiredaminorityinvestment popular digitalplatform. Media’s long-termlicensingagreementwithWarner Bros Formed a new partnership with Grandé Studios, bringing increased Noovo.ca fromGroupeVMédia,strengtheningchoiceforTVviewers French-language sports network asthemost-watchedTVnetworkin Maintained CTV’s #1 ranking Members anall-newwaytowatchliveandon-demandTVshows Launched Virgin TV, an app-based Maintained our position as Canada’s largestTVproviderwith creation. BellMediarebrandedVnetworkasNoovo, establishinga devices expanding ourindustry-leadingcontentproductionrole. demand contentfromBellAltTV, support forallmajorstreaming over 2019 our totalnumberofIPTVsubscribersby2.2%to1,806,373 by AndroidTVofferingall-in-oneaccesstoliveTV, moviesandon resources toQuébec’s French-language contentcreationand network Vandthead-supported video-on-demand(VOD)service all-in-one accesstoliveandon-demandprogrammingfromCTV, and streamingdevices and live sports across iOS and Android smartphones, tablets, laptops and Top 30 programs nationallyamongtotalviewers Introduced anewad-supported CTVdigitalvideoplatformoffering Introduced theBellStreamer, anew4KHDRstreamingdevicepowered in the Montréal-based multipurpose TV, film, andequipment company, in QuébecwhileenhancinginvestmentFrench-language content eliver the most compelling content , CTV-branded specialtychannels CTV-branded

D Inform andengageCanadianaudienceswithaunifiedap our trusted media brands and content creation leadership to bring Canadians the content they want the most on any platform our trustedmediabrandsandcontentcreationleadershiptobringCanadiansthetheywantmostonanyplatform they choose. for both a traditional TV network and its for bothatraditionalTVnetworkandits TV service offering Virgin Internet service offering Virgin Internet , MTV, CTVMoviesand . International . International proach todeliveringourtopTV, mediaandentertainmentassets,leveraging • • • • • • • • • • • • • 2021 FOCUS

TSN andRDSextendedtheirlong-termbroadcastpartnership with TSN andRDSannouncedamulti-yearmediarightsextensionwithF1, • 5 Season ofChampionseventsthroughthe2027-28 season Strategic pricingonadvertisingsales streaming andsports services Curling Canada,ensuringthatBellMedia’s sports networkswillcontinue Optimize uniquepartnerships andstrategiccontentinvestments Continued scalingofCravethroughbroadercontentofferingand Continued growthinIPTVsubscribers properties platforms Bell Media’s Pinewood Toronto Studios began major construction on Reinforce industryleadershipinconventionalTV, specialtyTV, pay TV, Maintain strongaudiencelevelsandratingsacrossallTVradio Monetization ofcontentrightsandBellMediapropertiesacrossall Enhance TVproductsuperioritythroughnewserviceofferingsand home ofF1 ensuring thatBellMedia’s sports networkscontinuetobetheCanadian user experienceimprovements better serveourFrench-language customers brand, MOVERadio, acrossCanada,aswellonthe in10 markets Investment inNoovo newsandmoreFrench-language originalsto iHeartRadio Canadaapp andatMoveRadio.ca iHeartRadio Canadalaunchedthenewnationalcontemporary radio international filmand its multi-stage expansion of new sound stage and support space. The innovation toprovide anenhancedcustomerexperienceinthehome to betheexclusiveEnglishandFrench broadcastersofCurlingCanada facility toatotalofover525,000 square feet.

-acre new build will better meet the growing roster of domestic and programming acrossallplatforms March 29, continuingBellMedia’s industry March 29, digital network announced the debut of its news show LE FIL on and commitment to offer enhanced information and entertainment and commitmenttoofferenhancedinformationentertainment In January 2021, BellMedia’s French-language Noovo In January 2021, through the 2024 season TV clients inToronto, bringingtheproduction BCE In - c leading investment in leading investmentin . 2020Annu a l R e TV po r t and

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MD&A Strategic imperatives MD&A Strategic imperatives • • • • • • • • • • • 2.5 2.4 2020 PROGRESS 2020 PROGRESS (1) 52

Telecom-television Services(CCTS).TheCCTSreported thatcomplaints 2019-20 Annual Report fromtheCommissionforComplaints 2019-20 Annual Virgin Mobile’s MyAccountwasnamedtheBestTelecommunications Virgin Mobilewasrankedhighestinoverallcustomercaresatisfaction securities to3.0% 54%oftotal serve toolsandenhancedapp functionality.Asaresult, Québec Wireless PurchaseExperienceStudy. Mobile also ranked best in overall satisfaction in J.D. Power’s 2020 Mobile alsorankedbestinoverallsatisfactionJ.D.Power’s 2020 Delivered productivity improvements and cost efficiencies resulting Delivered productivityimprovementsandcostefficienciesresulting Maintained relatively stable BCE consolidated adjusted EBITDA margin aservicethathelpscustomersinOntarioand Launched MoveValet, Mobile Application oftheyearatthe 2020 MobileWebAwards Delivered thegreatestreductioninconsumercomplaintsamong Lowered Bell Canada’s average after-tax cost of publiclyissueddebt connections alreadyinplace. of ourcustomers care specialistsavailable over 2019 company’s overallshareofcomplaintswasdown customer transactions were conducted online by the end of 2020, customer transactionswereconductedonlinebytheendof2020, up 10 pts over2019. received fromBellcustomersdeclinedmorethan35%andthe response to all national providers for the fifth year in a row according to the Introduced the Assisted Self-Installation and Repair program in self- Improved our digital capabilities, including online fulfillment, Improved customerchurnratesacrossallwirelineresidentialservices Improved wirelesspostpaid churnby0.14 pts over 2019 to0.99%,our lowest everannualpostpaid churnrate with fibre installation optiontohouseholdsinOntarioandQuébecwithfibre CanadaWirelessCustomerCareStudyfor in theJ.D.Power 2020 innovations enabledbynewbroadbandtechnologies the fourth year in a row, and the fifthtime in the last from oneresidentialaddresstoanother, withdedicatedcustomer from theexpansion ofBell’s all-fibrenetworkfootprintandservice

| Adjusted EBITD by otherissuers. Seesection10.2,

BCE In hampion customer experience customer hampion perate with agility and cost efficiency

O C Enhance ouroperationalexcellenceina Deliver ap on efficiencyanddisciplinedcostmanagementacrossourbusiness segments. every level,fromsalestoinstallationongoingsupport. c seamlessly transfer their Internet, TV and phone services seamlessly transfer their Internet, . 2020Annu the A marginisanon-GAAP financialmeasureanddoesnothaveanystandardized meaningunderIFRS.Therefore,it isunlikelytobecomparable tosimilar measurespresented COVID-19 andteammembers a ositive customer experience for consumers and business customers by making it easier to do business with Bell at ositive customerexperienceforconsumersandbusinesscustomersbymakingiteasiertodowithBellat l R e po r pandemic seven t Non-GAAP financial measuresand keyperformanceindicators (KPIs)–Adjusted EBITDA andadjusted EBITDA margin days aweek to protectthehealthandsafety . Wealsoofferedafullself- six basis points to24%. competitive marketplace and build on our industry-leading cost structure with a focus competitive marketplaceand build on our industry-leadingcoststructurewith a focus six years. Virgin years. Virgin (1) • • • • • • • • • • • • • • 2021 FOCUS 2021 FOCUS

• • • • • • • 17% in Ontario, Available inOntarioandQuébec, solutions enabling businesses to optimize costs, enhance productivity Offered residential repair appointments the same day ornext day92% Continued sharpfocusonourcoststructure Continue toinvestinartificialintelligenceandmachinelearning Reduced residential FTTP Internetrepair truckrollspercustomerby Reduced residentialFTTP Reduce subscriber acquisition and retention spending, enabled by Reduce subscriberacquisitionand retentionspending,enabledby Realize costsavingsfrom: Further reduce the total number of customer calls to our call centres Further evolve ourself-servetools Deliver amoreconvenientandpersonalizedself-serveexperience Further improvecustomersatisfactionscores Further improveandexpand self-installationcapabilities, including ordering anddeliveryoptionsinteractivesupport calendar. of thetimeinOntario, customers withmorepreciseestimatesoftechnicianarrival timesand network performance and growemployeeengagement allows customerstheabilitytoaddtheirappointment toapersonal as wellthenumberoftruckrolls resolve customerissuesfaster I Integrated ourinnovative ManageYour Appointment serviceinto Improve end-to-end customer experience with continued investment Improve end-to-endcustomerexperiencewithcontinuedinvestment in onlinesalessupport anddigitalfunctionality increasing adoptionof the MyBellapp andenabledthisserviceforVirginMobilecustomers. for customers ntroduced Virtual Office, a new suite of integrated remote work ntroduced VirtualOffice,anewsuiteofintegratedremotework

other improvementstothecustomer serviceexperience changes inconsumerbehaviourandproductinnovation operating efficienciesenabledbyagrowingdirectfibrefootprint rationalization ofrealestatefootprint new callcentretechnologythatis enablingself-servecapabilities management workforce reductions including attrition and retirements lower contractedratesfromoursuppliers Québec Québec and the Atlantic provinces as a result of greater provinces as a result of greater and the Atlantic device financingplans and the Atlantic provinces and theAtlantic Manage Your Appointment provides in this MD&A formore details. inthisMD&A • • • • 2.6 2020 PROGRESS

The awardrecognizesBell’s commitment toprovidinganinclusiveand • • • Announced newinitiativestosupport BIPOCteammembersand workplace environmentandstrongresponse to Group (SRG) list of 25 Canadian brands that are championing diversity persons with disabilities, Indigenous Peoples, visible minorities and persons with disabilities, Indigenous Peoples, visible minoritiesand Ranked asthetop communicationscompany ontheSolutionsResearch Named oneofCanada’s BestDiversityEmployersforthefourthyearin Recognized asoneofCanada’s forthesixth Top 100 Employers health, comprehensive employee benefits and resources, inclusive health, comprehensiveemployeebenefitsandresources,inclusive other groupsintheircareerdevelopment. our widerangeofprogramstoenableBIPOCcommunities,women, communities consecutive yearinMediacorp’s annualreviewofthebestworkplaces and inclusion accessible workplace thatreflectsCanada’s diversityandhighlights a rowinMediacorp’s 2020 report onworkplace diversityandinclusion. across thecountry,reflectingourlong-standingcommitmenttomental

support fortheBlackProfessionalsatBellNetwork Network, AscendCanadaandIndigenousWorks, aswellongoing Partnerships with the Onyx Initiative, Black Professionals in Tech HireBIPOC websiteandotherinitiatives Diversity Task Force toenhancetherepresentationofdiversevoices Partnered withBIPOCTVandFilmtolaunch Fund tosupport thementalhealthandwell New of BIPOC Canadians working in the media industry through the of BIPOCCanadiansworkinginthemediaindustrythrough communities and intern/graduate hiring and launched the Bell Let’s Talk Diversity in programming and ngage and invest in our people

targets for BIPOC representation in Bell senior management targets forBIPOCrepresentationinBellseniormanagement E Recognize ourteam’ members toachievetheirfullpotential. technology andsupport resourcesandbyofferingenhanceddevelopmentopportunities, enablingourdiverseand dynamic team decision-making, s importance toBell’s competitivesuccessbystrengtheningouraward-winningworkplace culturewith new and increase the employment and increase the employment - being of the the Bell Media Content the BellMediaContent COVID-19 Canada’s BIPOC pandemic • • • • • • • • • • 2021 FOCUS

workplace mentalhealth,comprehensiveandflexiblebenefitsplans COVID-19 pandemic Continue toevolve Bell’s COVID-19 Continue ourinitiativestoengageandinvestinpeople,recognizing protect the health and safety of the public, our customers and team; protect thehealthandsafetyofpublic,ourcustomersteam; professionals through virtual consultation technology and added a professionals through virtual consultation technology and added a Launched an online virtual healthcare program, offering team members Launched anonlinevirtualhealthcareprogram,offeringteammembers Build Bell’s talentadvantage byexpanding criticalskillsandupskilling Enhance Bell’s focusonperformanceandemployeerecognitionwith Deliver ondiversityandinclusioncommitments Enhanced ourhealthandsafetymeasuresaspart ofBell’s ongoing Named oneofCanada’s Top Family-Friendly EmployersbyMediacorp Named oneofCanada’s Top EmployersforYoung Peopleforthethird how criticallyimportant ourteam istoBell’s success of resourcesandsupport consecutive year by Mediacorp in recognition of our industry-leading and support ourcustomersandcommunities new ways to balance work, family and other life commitments and recruitment andcareerdevelopmentprogramsforstudents resources andconfidentialsupport servicesthroughBell’s Employee response to new HealthCareAssistservicetohelpteammembersbetternavigate and their families convenient and confidential access to healthcare and theirfamiliesconvenientconfidentialaccess tohealthcare and astrongEmployeeFamily AssistanceProgramwithavariety a new,unifiedcorporate rewardandrecognitionprogram and Family AssistanceProgram Introduced our Flexible Work Policy, offering Bell team members in recognition of ourmaternity andparental benefits, commitment to the guiding principles to keep Canadians connected and informed; the guidingprinciplestokeepCanadiansconnectedandinformed; the healthcaresystem facilitating amovetoremoteworkarrangementsinresponse to the COVID-19 pandemic pandemic , and provided mental health , andprovidedmentalhealth BCE In c response, focusingon . 2020Annu a l R e po r t

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MD&A Strategic imperatives MD&A Outlook, assumptions and risks 3 • • • • This section provides information pertaining to our consolidated business outlook andoperatingassumptionsfor 2021 andourprincipal This sectionprovidesinformationpertainingtoourconsolidatedbusinessoutlook TV subscriber base growth, together with pricing discipline and the TV subscriberbasegrowth,togetherwithpricingdisciplineandthe This is expected to contribute to substantial free cash flow generation, This isexpectedtocontributesubstantialfreecashflowgeneration, This sectioncontainsforward-lookingstatements,includingrelatingto 3.1 2021 will bearesetyearforBCEasweexpecttotransitiontowards OUTLOOK various potential outcomes, Underpinning our Our projectedoperatingsuccessfor 2021 willcontinuetobeanchored COVID-19 fibre-related operating efficiencies and continued service improvement, fibre-related operating efficiencies and continued service improvement, flow-through of operating cost savings from a reduced workforce, providing support forthehigherBCEcommonsharedividend for2021, periods. Theextenttowhich or remedyitsimpacts, amongothers. emerge concerningtheseverity,durationandresurgencesof duration of the COVID-19 pandemic, operating momentum.Duetouncertaintiesrelatingtheseverityand objectives, plansandstrategic could continue to be significantly andnegativelyimpacted in could continuetobesignificantly new results return to pre- more ruralcommunities,and all-fibre connections,deploymentof Wireless HomeInternettoeven aggressively onourbroadbandstrategy, includingtheexpansion of as wellincreasedcapitalexpenditurestoforgeaheadevenmore are and treatments, and the potential adversely impact uswilldependonfuturedevelopments thatare and possible future resurgences in the number of business risks. impacts oftheCOVID-19pandemic on looking statementsatthebeginningofthisMD&A. trajectory for all Bell operating segments. Wireless, retail Internet and trajectory forallBelloperatingsegments.Wireless,retailInternetand to thestrategicprioritieswesetin2020.Theycentreon: to predict 54

The ongoing digital transformation of our operations, especially as The ongoingdigitaltransformationofouroperations,especiallyas A continuedsharpfocusonourcoststructure Improving theend-to-end Increased investmentoncorenetworkinfrastructurethatwilllaythe improved app functionality self-serveandautomationtools it relatestoonlinefulfillment, foundation forfuturebroadbandInternetand5Ggrowth

| utlook, assumptions and risks

usiness outlook and assumptions and outlook usiness BCE In projected todriveoverallrevenueandadjustedEBITDA growth. vaccines and treatments and O B c pandemic , includingthe . 2020Annu related assumptions.Ourbusinessand COVID-19 outlook outlook and the actions required to contain the coronavirus and theactionsrequiredtocontaincoronavirus a l R e pandemic levels of financial performance and po for 2021 isan effective distributionofapproved vaccines r t c it is difficult the ustomer a fasterbuildofourmobile5G network. , as well as new information which may , as well as new information which may priorities andour2021annualizedcommonsharedividend. COVID-19 development and distribution of including the current resurgence including the currentresurgence expected our business e xperience at this time to estimate the at this time to estimate the pandemic improving performance improving performance COVID-19 or future financial or futurefinancial financial results financial results will continue to will continueto cases, and cases, and difficult difficult future future the our • • • • • • • • • • • • • • The key 2021 operationalprioritiesforBCEare: 5.1%, to$3.50 per share. Our projected financial performance for 2021 enabled us to increase Our projectedfinancialperformance for 2021 enabledustoincrease the annualized BCE common share dividend for 2021 by 17 cents, or or by 17 cents, the annualizedBCEcommonshare dividendfor 2021

Continued adoptionofmobile phone devices,tablets and data Continued growthofourprepaid subscriberbase Continued scaling of Crave through broader content offering and Continued scalingofCravethroughbroadercontentofferingand Continued growthinretailInternetandIPTVsubscribers Continued deployment of 5G wireless network offering coverage that fibre footprint, changesinconsumerbehaviourand product innovation, fibre footprint, platforms Maintain ourmarketshareofnationaloperators’wirelesspostpaid Monetization of content rights and Bell Media properties across all Monetization ofcontentrightsand BellMediapropertiesacrossall Media revenuegenerationfromanexpectedimprovementinadvertiser Realization ofcostsavingsrelatedtomanagementworkforce Enhance InternetandTVproductsuperioritythroughnewservice Further deployment of direct fibretomorehomesandbusinesses within content, inthelanguageoftheirchoice,onpreferred platforms content, demand withagradualeconomicrecoverycombinedsubscriber offerings andinnovation toprovideanenhancedcustomerexperience our wireline footprint and fixed devices andnewdataservices user experienceimprovements better serveourFrench-language customerswith awiderarrayof revenue growth and strategic pricing on advertising sales, while rationalization ofrealestatefootprint new callcentretechnologythatisenablingself-servecapabilities, reductions includingattritionandretirements,lowercontractedrates by increasingadoptionof net additions applications, aswelltheintroductionof more5G,4G LTE andLTE-A Improvement in subscriber acquisition and retention spending, enabled Improvement insubscriberacquisitionandretentionspending,enabled Investment inNoovo newsandmoreFrench-language originalsto Increased adoption ofunlimited dataplansand in thehome is competitivewithothernationaloperatorsincentresacrossCanada to controlTVprogrammingandpremiumcontentcostescalation the customerserviceexperience from oursuppliers, operatingefficienciesenabledbyagrowingdirect projected financialperformancefor Refertothesection device financing WTTP WTTP technology in rural communities 2021 and other improvements to and otherimprovementsto Caution regardingforward- ,

our plans 2021 device financing business outlook, seeking seeking plans • • • • • • These measures significantly disrupted retail and commercial activities disruptedretailandcommercial activities These measuressignificantly resultedingovernmentsandbusinesses The COVID-19 pandemic 3.2 ASSUMPTIONS strengthened andbecamemore severe inlateDecember, resulting sequential improvement in our financial performance in the third some levelof, orincrease,commercialactivities,resultinginamarked ECONOMIC CONDITIONS COVID-19 PANDEMIC ANDGENERAL ASSUMPTIONS ABOUTTHECANADIANECONOMY worldwide adopting emergency measures to combat the spread of worldwide adoptingemergencymeasurestocombatthespread of which in turn depend on important assumptions about how the COVID-19 pandemic willevolve. Notably,itisassumedthatthevaccine financial resultsorreputation,refertosection8, periods, borderclosures,travelbansorrestrictionsandcurfews. We have made certain assumptions concerning the Canadian economy, Provided belowisa summary descriptionofcertainourprincipal of 2020. The gradual easing of certain emergency measures in the of 2020.Thegradualeasingcertainemergencymeasuresinthe of lockdown measuresincertainareas. Accordingly,resurgences quarter. However, starting of 2020. The most significant impact of the description oftheprincipal risksrelatingtoourregulatoryenvironment our segments. Certain additional business segment-specific risks end of2021.Inparticular, wehaveassumed: other advanced economies and China achieve broadimmunity by the business and financial results was experienced in the second quarter business andfinancialresultswasexperiencedinthesecondquarter business risksthatcouldhaveamaterialadverseeffectonallof rollout proceedslargelyasannouncedbygovernmentsandthatCanada, across mostsectorsoftheeconomyandhadanadversepervasive are reported insection5, and section9, a materialadverseeffectonourbusiness,financialcondition,liquidity, and adescriptionoftheotherprincipal businessrisksthatcouldhave businesses, stay-at-homeandwork-from-homepolicies, quarantine latter part ofthesecondquarterallowedmanybusinesses toresume limitation, socialdistancing,thetemporary closureofnon-essential in new COVID-19 cases have caused and could continue to cause in new COVID-19 cases in theclosureof all non-essentialbusinessesand impact on our financial andoperatingperformancethroughout the numberofCOVID-19 cases, governmentrestrictions the coronavirus. These emergency measures have included, without the coronavirus. These emergency measures have included, without

Accelerating trendtowarde-commerce Strengthening business investment outside the oil and gas sector as Strengthening businessinvestmentoutsidetheoilandgassectoras Strong reboundineconomicgrowthafterthefirstquarterof 2021 some sectors COVID-19 pandemic, giventheBankofCanada’s mostrecentestimated Low immigration levels until international travel and/or health-related Low immigrationlevelsuntilinternationaltraveland/orhealth-related Employment gains expected in 2021, despite ongoing challenges in Recovery ofconsumerconfidenceandelevated levelsofdisposable growth in Canadian gross domestic product of around 4% on average growth inCanadiangrossdomesticproductof around 4% onaverage uncertainty recedes restrictions arelifted as theeconomyrecoversfromsignificantimpacts ofthe in 2021,followingadeclineofabout5.5%2020 income rincipal business risks business rincipal P Business risks,respectively. in lateSeptember, duetotheresurgence in Business segmentanalysis.For adetailed COVID-19 Regulatory environment Regulatory environment the pandemic on our were reintroduction reintroduction gradually gradually most most • • • • • • • such adverseeffectcouldbematerial. ShouldtheCOVID-19 pandemic supporting workersandcertain MARKET ASSUMPTIONS would likelyresult inmoreemploymentlossesand financialhardship COVID-19 COVID-19 pandemic could result in increased insolvencies, bankruptcies, potentially upon andafter theirgradualorcompleteremoval permanent storeclosures,higherunemploymentlevelsanddecreased pandemic, couldresultinincreasedadverseeconomicdisruptions potentially, additional measures. The strengthening or reintroduction of Restrictive measures adopted or encouraged to combat the spread of Restrictive measuresadoptedorencouragedtocombatthespread of Economic uncertainty could continue or worsen for as long as measures consumers, which could continue or accelerate the decrease in the consumers, which couldcontinueoracceleratethe decreaseinthe closure of non-essential businesses continue or be reintroduced, it closure ofnon-essentialbusinesses continueorbereintroduced,it continue for a more prolonged period of time and the temporary on ourbusinessoncegovernmentprogramsandhealthrestrictions of travelrecoveryandeconomicrebound,ortheassociatedimpact economic conditionscouldcontinueevenupon thegradualorcomplete consumer andcorporate spendinginCanadaandaroundtheworld. emergency measures, or a more prolonged duration of the confinement measuresandbusinessclosurespreviouslymandatedor, governments tostrengthenorre-introduceemergencymeasures unknown for what period of time such government programs will be unknown forwhatperiodoftimesuchgovernmentprogramswillbe adversely affecting spending by our customers, both businesses and adversely affecting spendingbyourcustomers,both businessesand rates, sustained some level of consumer and business activities, it is rates, sustainedsomelevelofconsumerandbusinessactivities,it is maintained. Inaddition,itis removal ofsuchmeasuresandthereafter. Whilegovernmentprograms and financialresultsforaslong asmeasuresadoptedinresponse and financialmarkets volatility. Theuncertaintybroughtaboutbythe limiting movementofpeoplearewithdrawn. including, dependingonaresurgence’s intensity,certainorallofthestrict to the COVID-19 pandemic remainin placeorarereintroduced to theCOVID-19 pandemic to continueadverselyaffectourbusiness,financialcondition,liquidity taken tocontainthespreadofCOVID-19

A shrinking data and voice connectivity market as business customers highlevelofwirelineandwirelesscompetitionin A consistently subscription video on demand (SVOD) streaming services together subscription videoondemand(SVOD)streamingservicestogether U.S. dollar, interestratesandchangesincommodityprices. with further scaling of OTT aggregators with furtherscalingofOTT Canadian dollarexpectedtoremainatornearcurrentlevels.Further While theadvertisingmarketcontinuestobeadverselyimpacted Declines in broadcasting distribution undertakings (BDU) subscribers Declines in broadcasting distribution undertakings (BDU) subscribers Higher, butslowing,wirelessindustrypenetration Prevailing low interest rates expected to remain at or near current do expectgradualrecoveryin2021 we due totheeconomicdownturnduringCOVID-19 pandemic, driven byincreasingcompetitionfromthecontinuedrolloutof consumer, businessandwholesalemarkets by cancelledordelayedadvertisingcampaigns frommanysectors competitors alternative OTT migrate tolower-pricedtraditionaltelecommunicationssolutionsor movements maybeimpacted bythedegreeofstrength levels fortheforeseeablefuture and the resulting adverse economic conditions are expected and theresultingadverseeconomicconditionsareexpected difficult businesses, coupled with low interest businesses, coupledwithlowinterest to predict the speed and magnitude to predictthespeedandmagnitude BCE In persist and certain of such persist andcertainofsuch c . 2020Annu a l R COVID-19 COVID-19 e po r , , and and t and and

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MD&A Outlook, assumptions and risks MD&A Outlook, assumptions and risks Technology substitution, IP networks and recent regulatory decisions, Technology substitution,IPnetworksandrecentregulatorydecisions, These adverseresultswouldbeexacerbatedshouldthetemporary As the scope of our businesses increases and evolving technologies A moreprolongedCOVID-19 pandemic COMPETITIVE ENVIRONMENT section 9, voice overIP(VoIP)providersandotherweb-based playersthatare while economic pressures on advertisers have led to the cancellation while economicpressuresonadvertisershaveledtothecancellation well asinfluencecustomeradoptionofnewservicesincluding,without financial, marketing, human, technological and network resources than financial, marketing, human,technological and networkresources than products and services and gain market share with far less investment in products and services and gain market share with far less investment in projects withafocusonbusinesscontinuityinsteadofgrowthprojects. purchase ofcertainourproductsandservices.Itmayalsoresultin product offerings through acquisitions in order to increase scale and product offerings through acquisitions inorder to increase scale and persist, BellMedia’s revenues. persist, penetrating thetelecommunicationsspace withsignificantresources We may be unable to perform work and render services on the premises We maybeunabletoperformworkandrenderservicesonthepremises Established competitorsfurtherseektoconsolidateorexpand their Bell Mediamarketsegments.Inaddition,measuressuchassocial Measures adoptedtocombatthespreadof has historicallybeenrequired.Inparticular, somecompetitors deliver drive newservices,deliverymodelsandstrategicpartnerships, our changed industry economics and allowed competitors to launch new changed industryeconomicsand allowedcompetitorstolaunchnew continue toimpact marketdynamics.Together, thesefactorshave competitors arechangingthecompetitivelandscapebyestablishing serviceproviders,IoThardwareandsoftware providers, cloud andOTT or suppliers, as well as global-scale competitors, including, in particular, emerging competitors,certainofwhichwerehistoricallyourpartners competitive landscapeintensifiesandexpands toincludenewand or deferralofadvertisingcampaigns. Theseeventshaveadversely distancing andstay-at-homework-from-homepolicies have cease tocarryonbusinessasaresultoftheCOVID-19 pandemic. government guidelinesandhealthsafetymeasures.Finally,acertain of certainbusinesscustomersduetoexisting,neworreintroduced downgrade dataconnectivityspeeds,orre-prioritizevarious business customers may continue to postpone purchases of hardware products, closure of non-essential businesses continue or be reintroduced as closure ofnon-essentialbusinessescontinueorbereintroducedas market opportunities inlightofthesechangesmarketdynamics. material positions, whichhasacceleratedduringthe COVID-19 pandemic. number ofourbusinesscustomerscouldbecomeinsolventorotherwise reduction orcancellationofourservicesduetoeconomicuncertainty. business customer activity addition, theeffectsofgovernmentpolicies reservingspectrumat and alargecustomerbaseoverwhichtoamortizecosts.Certainofthese foraslongthey affected, andcouldcontinuetoadverselyaffect, adversely impacted BellMedia’s radioaudiencelevelsandOOHbusiness, and otherproductions,resultinginreducedaudiencelevelscertain and offloadingontoWi-Finetworksascustomersworkfromhome, a result of resurgences in the number of COVID-19 cases. Business Business a result of resurgences in the number of COVID-19 cases. In addition, risk factors, including, without limitation, those described in In addition,riskfactors,including,withoutlimitation,thosedescribedin limitation, 5GandIoT. in the suspension, delay or cancellation of some live programming in thesuspension,delayorcancellationofsomeliveprogramming in particular, continue to reduce barriers to entry in our industry. In the continuedsuppression bycustomersofmobilephonedata their services over our networks, leveraging regulatory obligations their servicesover ournetworks,leveragingregulatory obligations favourable pricing for regionalfacilities-based wireless serviceproviders 56

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BCE In c , have been and/or could be exacerbated, or Business risks,havebeenand/orcouldbeexacerbated,or . 2020Annu a l R e po r t , which could continue to lead to further could continue to result in lower continue toresultinlower COVID-19 have resulted have resulted usage usage • The extenttowhichtheCOVID-19 pandemic willcontinuetoadversely Any such pandemics, epidemics and other health risks could also have suppliers, which provides them with a competitive advantage over us. services. Such lower required investment challenges the monetization of services. Anyoftheseeventscouldhaveanadverseeffectonour vaccines andtreatment COVID-19 pandemic, tocontinueinthe future COVID-19 pandemic, Greater customer adoption of services like 5G, international roaming Greater customeradoptionofserviceslike5G,internationalroaming financial resultsorreputation. predict pandemic onourcompany, employeesorcustomers,andtheseactions pace withourdeploymentofnewsolutions,businessandfinancial provide uswithproductsandservicesweneedtooperateourbusiness. While wehaveimplementedbusinesscontinuityplansandtaken We expect these trends, some of which have intensified during the We expectthesetrends,someof whichhaveintensifiedduringthe MD&A, andothers arisingfromtheCOVID-19 pandemic,MD&A, couldhave a of the developments and risks referred to above and elsewhere in this of thedevelopmentsandrisksreferredtoaboveelsewhereinthis emerge concerningtheCOVID-19 pandemic andtheactionsrequired competition wefaceasaresultcould negativelyimpact ourbusiness competitors, orifthemarketdoesnotadoptthesenewtechnologies in develop anddeploynewsolutionsinadvance withour oforconcurrently opportunities aswellcompetitionintheseareas.Ifweareunableto our networksandoperatingmodel.Moreover, players foreignOTT own networksandimpacting epidemics andotherhealthriskscouldoccur, whichcouldadversely urban city optimization (smart cities), is expected to accelerate growth urban cityoptimization(smartcities),isexpectedtoaccelerategrowth may have adverse effects on our business, which may continue following may haveadverseeffectsonourbusiness,whichcontinuefollowing thenegativeimpacts ofthe mitigating, inwholeorpart, willsucceedinpreventingor response totheCOVID-19 pandemic become morelikelytomaterialize,asaresultoftheCOVID-19 pandemic. results couldbeadverselyaffected. monitoring), transportation (e.g.,connectedcarandassettracking) business andfinancialperformance. material adverse effect on our business, financial condition, liquidity, material adverseeffectonourbusiness,financialcondition,liquidity, and precautions,therecanbenoassurancethattheseactionsin additional stepswhererequired,includingvarious preventivemeasures and resurgenceoftravel,aswellIoTservicesapplications not subjecttothesametaxationandCanadiancontent are currently applicable to us, therefore limiting their need to invest in building their negative impact on thedemandfor, and pricesof, ourproductsand a declininglevelofretailandcommercialactivity,whichcouldhave an adverseeffectontheeconomyandfinancialmarketsresultingin and servicestoourcustomers,aswelltheabilityofsuppliers to affect ourabilitytomaintainoperationalnetworksandprovideproducts In additiontorisksrelatedtheCOVID-19 pandemic, otherpandemics, impact uswilldependonfuturedevelopmentsthatare in the areas of retail (e.g., home automation), business (e.g., remote in the areas of retail (e.g., homeautomation),business (e.g., remote investment obligationsasthoseimposed onCanadiandomesticdigital including, withoutlimitation,inthe followingways: treatments, andthepotential the COVID-19 pandemic. to containthecoronavirusorremedyitsimpacts, amongothers.Any

The accelerationofdisruptions and disintermediationineachof financial results our business segmentscouldadversely affectourbusinessand our business , includingthe effective distributionofapproved vaccines and s , aswellnewinformationwhichmay the development anddistributionof network-based differentiation of our network-based differentiationofour , andtheincreased difficult to difficultto COVID-19 new new

• • • • • • • • • Adverse decisions by governments or regulatory agencies, increased Although mostofourretailservicesarenotprice-regulated,government REGULATORY ENVIRONMENT Competition Bureau continue to play a significant role in regulatory Competition Bureau continue toplayasignificant roleinregulatory Economic Development Canada (ISED), Canadian Heritage and the Economic DevelopmentCanada(ISED),CanadianHeritageandthe organizations, strategiesarecontingent upon regulatory decisions. requirements and control of copyright piracy. As with all regulated requirements andcontrolofcopyright piracy.Aswithallregulated regulation or lack of effective anti-piracy remedies could have negative regulation orlack ofeffectiveanti-piracyremediescould havenegative acquisitions, broadcast and spectrum licensing, foreign ownership acquisitions, broadcastandspectrum licensing,foreignownership agencies anddepartments suchastheCRTC,Innovation, Scienceand matters such as mandatory access to networks, spectrum auctions, matters suchasmandatoryaccess tonetworks,spectrumauctions, the imposition of consumer-related codes of conduct, approvalthe imposition of consumer-related codes of conduct, of

The accelerated cloud-based and OTT-based substitution and the substitution andthe The acceleratedcloud-basedandOTT-based The timely rollout of 5Gmobile service may beadversely impacted by The convergenceofwirelineandwirelessservicesisimpacting The shifttoonlinetransactionsduringtheCOVID-19 pandemic amid The regionalnatureofrestrictivemeasuresimposed byprovincial andtherestrictivemeasuresmandatedor The COVID-19 pandemic Should our value proposition on pricing, network, speed, service or suppliers, theavailability of5Gcompatible handsetsandpotential store closures and reduced store traffic adversely impacted ourability substitution infavour oflower-marginproductsaswellaccelerate subscribers and sell our products and services. This could continue subscribers andsellourproductsservices.Thiscouldcontinue wholesale subscribersandthuscouldnegativelyimpact ourcapacity Competitors’ aggressive market offers, combined with heightened Competitors’ aggressivemarketoffers,combinedwithheightened fibre networks could bring new competitors, including OTT players, players, fibre networkscouldbringnewcompetitors,includingOTT product purchase choice by customers and could accelerate product product purchasechoicebycustomersandcouldaccelerate Regulatory decisions regarding wholesale access to our wireless and Regulatory decisionsregardingwholesaleaccesstoourwirelessand defined networking in a wide area network (SD WAN) solutions offered defined networkinginawideareanetwork(SDWAN)solutionsoffered operational challengesindeliveringnewtechnology government decisions,constraintsonaccesstonetworkequipment or strengthenthemarketposition ofcurrentcompetitors,whichmay churn, which during theCOVID-19 pandemic andthereafter, andpotentially worsenif customer sensitivityaroundpricing,couldresultinpricingpressures, governments in response to the COVID-19 pandemic could adversely consumer behaviour and activity and the way businesses operate, consumer behaviourandactivitythewaybusinessesoperate, encouraged tocontainthespreadofcoronavirushavechanged acquisition andretentionspending retention, andourmarketsharesalesvolumes coulddecrease and cashflows affect thesaleofourproductsandservices,aswellrevenues andpotentially thereafter,measures persist, whichcouldadversely by local and global competitors, such as traditional software players, by localandglobalcompetitors,suchastraditionalsoftwareplayers, market expansion oflower-costVoIP, collaborationandsoftware- negatively impact ourretailsubscriber baseinfavour oflowermargin alternatives, thiscouldleadtoincreasedchurn and suchchangescouldcontinueorfurtherevolve foraslongsuch lower margins and increased costs of customer acquisition and industry players fromother impact ourbusinessincertainkeymarketsdifferently if we do not match competitors’ pricing levels or increase customer if wedonotmatchcompetitors’pricinglevelsorincreasecustomer to optimizescaleandinvestinournetworks aremaintainedorreintroduced. temporary closuresofourretail outlets to leverageourextensiveretailnetworkincreasethenumberof features notbeconsideredsufficientforcustomersinlightofavailable trends are expected toincreasewiththeintroductionof5G • • • • • • • • section 5,Businesssegment analysis financial, operational, reputational or competitive consequences for our financial, operational, reputational or competitive consequences for our For adiscussionofourregulatoryenvironmentandtheprincipal risks For afurtherdiscussionofourcompetitive environment andrelatedrisks, consultations orpositions, maybeadoptedorinstituted,asthecase or regulations,regulatoryinitiativesproceedings,government related thereto, refertosection8, may be,thatimpose additionalconstraintsonouroperations andmay business. AsaresultoftheCOVID-19 pandemic, additionallegislation adversely impact ourabilitytocompeteinthemarketplace. as wellalistofourmaincompetitors,onsegmentedbasis,refer risks insection5, the applicable segmentdiscussionsunderPrincipal businessrisksin to

The pressurefromsimpler, lower The launchbyinternationalcompetitorsofloworbitsatellitesto Traditional radiofacesacceleratedsubstitutionfromalternative The proliferation of content piracy could negatively impact our ability Subscriber andviewergrowthischallengedbychanging Spending rationalizationbybusinesscustomerscouldleadtohigher service supply withonesupplier couldacceleratethedisruptionsin strategy insuchareas streaming servicessuchasthoseofferedbyglobalaudio which mayoffercontentaslossleaderstosupport theircorebusiness, while creatingbandwidthpressurewithoutcorresponding revenue Competition with global competitors such as Netflix, Amazon and Disney, Competition withglobalcompetitorssuchasNetflix,AmazonandDisney, andotheralternativeserviceproviders, someof OTT aggregators provide connectivity, primarily in rural areas, represents a new type provide connectivity,primarilyinruralareas,representsanewtype players andthosemadeavailable bynewtechnologies,includingsmart Multinational business consumers’ desire to consolidate global network habits, theexpansion andacceleratedmarketpenetrationamid have anadverseeffectonourbusiness content could drive significant increases in content acquisition and content coulddrivesignificantincreasesinacquisitionand declines insalesof of competition which could adversely affect our network deployment of competitionwhichcouldadverselyaffectournetworkdeployment due toadeclineinradioaudiencedrivenbyreducedtravelneeds car services,whichhasbeenexacerbatedbytheCOVID-19 pandemic growth inthecontextofregulatedwholesalehigh-speedInternet serviceoffering competitors withholdcontenttoenhancetheirOTT development costsaswellreducedaccesstokeycontentsome our wirelinesegment managed servicesbusiness margin erosion, driven by technology substitution, economic factors and TelecommunicationsCommission(CRTC)arbitrationa as well as piracy, account stacking, Canadian Radio-television and customers’operationalefficiencies are changingourapproach toserviceoffer access rates in-sourcing trends,whichcouldhaveanadverseimpact onour in addition to traditional Canadian TV competitors, for programming in additiontotraditionalCanadianTVcompetitors,forprogramming fragmentation ofaudiencewithanabundancechoices contentproviders, pandemic oflow-costOTT the COVID-19 to monetize products and services beyond our current expectations, to monetizeproductsandservicesbeyondourcurrentexpectations, Competitive landscapeandindustrytrends Business segmentanalysis traditional connectivityvalue-added servicesand - as well as Regulatory environmentaswell cost, agile service models is driving agileservicemodelsisdriving cost, . BCE In s and pricing and could ings andpricingcould . and c . 2020Annu Principal business a l R e po r t

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MD&A Outlook, assumptions and risks MD&A Outlook, assumptions and risks SECURITY MANAGEMENTSECURITY social media and cloud-based solutions, could adversely affect our social mediaandcloud-basedsolutions, couldadverselyaffectour increased the threat surface ofsignificantly our network and systems, subject toinformationsecuritythreats,alsoexpose ustorisksaswe solutions andITconsumerization. Our use of third-party suppliers and sensitive information,fromeventssuchasinformationsecurityattacks, various maliciousobjectivesincludingunauthorizedaccessto, and Our operations, service performance, reputation and business continuity Our operations,serviceperformance,reputationandbusinesscontinuity proliferation ofdataservices,includingmobileTV, mobilecommerce, policies, proceduresandcontrolsmustcontinuouslyadaptevolve protect informationsystemsandunderlyingdata. processing and storing suchproprietarybusiness and personal data, physical recordsofproprietarybusinessandpersonaldata,suchas partners, employeesorindependentthirdparties, whethermalicious We are also exposed to information security threats as a result of actions We arealsoexposed toinformation securitythreatsasaresultofactions have less immediate oversight over their IT domains. Furthermore, the effective policies, proceduresandcontrolsmustbeimplementedto or not, including as a result of the use of social media, cloud-based includingasaresultoftheusesocialmedia,cloud-based or not, outsourcers and reliance on business partners, which may also be effective againstallinformationsecurityattacks. organized criminals, state-sponsored organizations and other parties. confidential customerandemployeeinformation,areallsensitivefrom continuous operationofournetworksandbusiness,aselectronic events. The protection and effective organization of our systems, or terrorism,sabotage,vandalism, actionsofneighboursandother depend onhowwell we protectour physical and non-physical unauthorized accessorentry,fire,naturaldisaster and managedtominimizesecurity threats.Failure toimplementan resulting inhighercomplexitythatneedstobecarefullymonitored mobile bankingandIoTapplications, aswellincreaseddigitizationand monitoring toensureeffectiveness.Thereis,however, nocertainty ability to successfully defend against information security attacks. and otherthirdparties acrossallmethodsofcommunication,including and smartcontractsleveragingblockchain fordigitalcertificate,have as well and malicioussoftware,phishingotherattacksonnetwork array ofeverevolving andchangingmeansincluding,withoutlimitation, actions byagrowingnumberofsophisticatedactors,includinghackers, a marketandprivacy perspective.Asouroperationsinvolve receiving, applications andinformationrepositories arecentraltothesecureand and windstorms,wildfires,flooding,extendedheatwaves,hurricanes, assets, includingnetworks,ITsystems,offices,corporate storesand Information security attacks may be perpetrated using acomplex Information security attacks have grownincomplexity, magnitude and Information security breaches can result from deliberate or unintended limitation, seismic and severe weather-related events such as ice, snow limitation, seismicandsevereweather-relatedeventssuchasice,snow in order to seek to mitigate risk and, consequently, require constant requireconstant in ordertoseekmitigateriskand,consequently, information systems.Informationsecurityattacksaimtoachieve interactions withbusinesspartners, suppliers, customers,employees considers relationships and information security program that efficiently the use of emerging technologies such as artificial intelligence, robotics artificial intelligence,robotics the useofemergingtechnologiessuchas that may be taken by our customers, suppliers, outsourcers, business that ourinformationsecuritypolicies, proceduresandcontrolswillbe theft of, confidential,proprietary,sensitiveorpersonalinformation, the useofstolencredentials,socialengineering,computerviruses frequency inrecentyearsandthepotential fordamageisincreasing. tornadoes and tsunamis), power loss, building cooling loss, acts of war 58

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BCE In c . 2020Annu extortion and business disruptions. Information security extortion andbusinessdisruptions.Informationsecurity a l R e po r t s (including, without (including,without • • • • • • • • • • • The COVID-19 pandemic has increased our exposure to information The COVID-19 pandemic security threats. Remote work arrangements of our employees and security threats.Remoteworkarrangementsofouremployeesand policies and procedures that weimplement will prevent the occurrence procedures toprotectourinformationandassets.However, giventhe price andlong-termshareholdervalue, giventhattheycouldleadto: occurrence ofany informationsecuritybreach. of thecosts,damages,liabilitiesor lossesthatcouldresultfromthe confidence and adversely affect our business, financial results, stock confidence andadverselyaffectourbusiness,financialresults,stock criminal activity,whichfurtherpressuresoursecurityenvironment. of allpotential informationsecuritybreaches.Inaddition,therecanbe complexity and scale of our business, network infrastructure, technology reputation andcompetitiveness,decreasecustomerinvestor resulting ininformationsecuritybreaches,theycouldharmourbrand, no assurancethatanyinsurance wemayhavewillcoverallorpart and thepotential useofunauthorizedcommunicationstechnologies. and ITsupporting systems, there can benoassurance that the security If information security threats were to become successful attacks If informationsecuritythreatsweretobecomesuccessfulattacks hasseenanincreaseinglobal In addition,theCOVID-19 pandemic In light of the evolving nature and sophistication of information security those ofoursuppliers have threats, we seek to continuously adapt our security policies and

Theft, loss, unauthorized disclosure, destruction or corruption of data loss,unauthorizeddisclosure, destructionorcorruptionofdata Theft, via mandatoryflow-throughofprivacy-related obligationsbyour Unauthorized access to proprietary or sensitive information about our Unauthorized accesstoproprietaryorsensitiveinformationaboutour with payment card industry data security standards for protection partners inanefforttomaintainrelationshipsafterincident Network operating failures and business disruptions, which could Network operatingfailuresandbusinessdisruptions,whichcould Higher insurancepremiums Remediation costs such as liability for stolen information, equipment Fines andsanctionsfromcreditcardprovidersforfailingtocomply Litigation, investigations,finesandliabilityforfailuretocomplywith Physical damagetonetworkassetsimpacting servicecontinuity Lost revenue resulting from the unauthorized use of proprietary our employeesorcustomers of third-party suppliers todelivercriticalservicesus of cardholderdata customers andadverselyaffecttheirabilitytomaintainnormal deploying additional personnel and protection technologies, training deploying additionalpersonnelandprotectiontechnologies,training difficulty inaccessingmaterialstodefendlegalactions customers oremployees,thatcouldresultinfinancialloss,exposure could divertresourcesfromprojectdelivery customers, as well as increased auditand regulatory scrutiny that and lossoffuturebusinessopportunities business, whichcouldresultindiminishedcompetitiveadvantages business operationsanddelivercriticalservices,and/ortheability negatively impact our ability to sell products and services to our repair andservicerecovery,incentivestocustomersorbusiness and auditors and monitoring employees, and engaging third-party security experts and confidentialinformation,includingpersonalinformationaboutour Increased information security protection costs, including the costs of Increased informationsecurityprotectioncosts,includingthecostsof Increased fraudascriminalsleveragestoleninformationagainstus, increasingly stringent privacy and information security laws, including information orthefailuretoretainattractcustomersafteranincident to claims for damages by customers, employees and others, and to claimsfordamagesbycustomers,employeesandothers, increased remote connectivity to our systems increased remoteconnectivitytooursystems 4 This section provides detailed information and analysis about BCE’s performance in 2020 compared with 2019.ItfocusesonBCE’s This sectionprovidesdetailedinformationandanalysisaboutBCE’s performancein 2020 4.1 BCE CONSOLIDATED INCOME STATEMENTS For furtherdiscussionandanalysisofourbusinesssegments,refertosection5, n.m.: notmeaningful egments. consolidated operatingresultsandprovidesfinancialinformationforourBellWireless,WirelineMediabusinesssegments. Adjusted EBITDA margin Total operating revenues Adjusted netearnings Amortization Adjusted EBITDA Adjusted EPS Severance, acquisitionandothercosts Other (expense)income Depreciation Finance costs Operating costs Operating revenues Income taxes Impairment ofassets Net earningsattributableto: Net earningsfromcontinuingoperationsattributableto: Net earningsfromcontinuingoperations Net earningsfromdiscontinuedoperations Net earningsfromcontinuingoperations Net earnings Net earnings Net earningspercommonshare Net earningspercommonshare onsolidated financialanalysis Service Common shareholders Common shareholders Continuing operations Preferred shareholders Preferred shareholders Product Discontinued operations Interest onpost-employment benefitobligations Non-controlling interest Non-controlling interest Interest expense

C Introduction (EPS) (13,276) 19,832 22,883 (1,110) (3,475) 2,730 2,498 2,473 2,473 2,699 2,272 2,699 9,607 3,051 (792) (194) (472) (929) (116) 3.02 2.76 0.25 2.51 42.0% 136 226 136 Business segmentanalysis 2020 (46) 65 65 (13,787) 10,006 20,566 23,793 (1,129) (1,125) (3,458) 3,040 3,224 3,224 3,253 3,011 3,253 3,227 3,119 (102) (886) (114) 3.46 3.37 0.03 3.34 42.1% 151 151 2019 (63) 95 62 62 29 . BCE In $ CHANGE (0.44) (0.61) (0.83) (289) (370) (542) (751) (751) (554) (739) (554) (399) (734) (176) (910) (389) 0.22 337 197 511 c (15) (15) (43) (17) 17 15 . 2020Annu (2) 3 3 a l R % CHANGE e (17.8%) (23.3%) (23.3%) (17.0%) (24.5%) (17.0%) (12.7%) (18.1%) (12.5%) (24.9%) 27.0% 29.8% po (0.1) pts (9.9%) (9.9%) (1.8%) (4.9%) (0.5%) (4.0%) (3.6%) (5.5%) (3.8%) 4.8% 4.8% 1.3% 3.7% n.m. n.m. n.m. n.m. r t

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MD&A Consolidated fi nancial analysis MD&A Consolidated fi nancial analysis 4.2 BCE STATEMENTS FLOWS CASH –SELECTED INFORMATION OF sales tolargeenterprisecustomers. TOTAL BCECUSTOMER CONNECTIONS BCE NETACTIVATIONS (LOSSES) year, primarily at our Bell Media segment, higher other expense and higher higherotherexpenseand primarily atourBellMediasegment, primarily due to lower wireless product sales and lower equipment primarily duetolowerwirelessproductsalesandequipment BCE revenuesdecreasedby3.8%in2020,compared tolastyear, higher net earnings from discontinued operations as a result of a gain higher netearningsfromdiscontinuedoperationsasaresultofgain n.m.: notmeaningful continued erosioninourvoice, satelliteTVandlegacydatarevenues, on sale,netoftaxes,$211 million inQ4 2020 from thecompletionof offsetbylowerincometaxesand depreciation andamortization,partly due toloweradjustedEBITDA, anincreaseinimpairment ofassets across all driven by the adverse impact of the COVID-19 pandemic rate increases.Productrevenuesdecreasedby5.5%yearoveryear, as welllowerwirelessservicerevenues.Thiswasmoderatedby In 2020,netearningsdecreasedby17.0%,compared to2019,mainly and IPTVsubscriberbases,alongwiththeflow-throughof Internet, the continued growth ofourpostpaid andprepaid wireless,retail three ofoursegments.Servicerevenuesdecreasedby3.6%yearover the saleofsubstantiallyallourdatacentreoperations. 60 Total servicessubscribers Total servicesnetactivations Capital expenditures Cash flowsfromoperatingactivities Free cashflow Wireline retailresidentialNASlinesnetlosses Wireline retailresidentialNASlines Wireline retailTVsubscribersnet(losses)activations Wireline retailTVsubscribers Wireline retailhigh-speedInternetsubscribersnetactivations Wireline retailhigh-speedInternetsubscribers Wireless subscribers Wireless subscribersnetactivations

Satellite Satellite | Prepaid Postpaid Postpaid Prepaid IPTV IPTV

BCE In ustomer connections ustomer reduced media advertising and subscriber revenues, the due toreducedmediaadvertisingandsubscriberrevenues,the C c . 2020Annu a l R e po r t $204 million, compared to2019,mainlydueloweradjustedEBITDA BCE’s adjustedEBITDA decreasedby4.0%in2020,compared tolastyear, Free cashflowdecreasedby$390 million in2020,compared to2019, costs, primarily as a result of the COVID-19 pandemic. This drove an Thisdrovean costs, primarilyasaresultoftheCOVID-19 pandemic. other costspaid. offset byhighercashfromworkingcapitalandlowerseverance driven bydeclinesacrossallthreeofoursegments,mainlyattributable operating activities, excluding cash from discontinued operations and operating activities,excludingcashfromdiscontinuedoperationsand revenue flow-through,offsetin part byreducedoperatingexpenses. and higherincometaxespaid duetotimingof installments,partly adjusted EBITDA margin of42.0% in2020, essentially stable compared acquisition andothercostspaid. mainly due to higher capital expenditures and lower cash flows from mainly duetohighercapitalexpendituresandlowercashflowsfrom In 2020,BCE’s cashflows fromoperatingactivitiesdecreasedby to last year, with a decline of 0.1 pts, primarily from lower service primarilyfromlowerservice to lastyear, withadeclineof0.1 pts, to loweryear-over-yearrevenues,moderatedbyreducedoperating (4,202) 3,348 7,754 2020 19,148,810 10,221,683 2,483,932 1,806,373 2,738,605 3,704,590 9,385,679 (213,551) 165,300 932,232 148,989 225,739 263,721 836,004 (73,050) (33,859) 39,191 37,982 (3,974) 3,738 7,958 2020 2020 2019 18,983,510 2,697,483 1,767,182 1,005,282 2,772,464 3,555,601 9,957,962 9,159,940 (263,325) 393,998 135,861 401,955 113,454 515,409 798,022 $ CHANGE (85,423) 91,476 6,053 (390) (228) (204) 2019 2019 % CHANGE % CHANGE % CHANGE (58.0%) (57.2%) (43.8%) (66.5%) (10.4%) (48.8%) 18.9% 14.5% (7.9%) (7.3%) (1.2%) (5.7%) (2.6%) 0.9% 2.2% 9.7% 4.2% 4.8% 2.6% 2.5% n.m. $23,793 • • • • Total operating revenues at BCE decreased by 3.8% in 2020, compared 4.4 4.3 $19,832 million in 2020 declined by 3.6% over last year and product declinedby3.6%overlastyearandproduct in 2020 $19,832 million Revenues BCE Operating costs Operating BCE volumes andoutbound roamingrevenues.BCEservicerevenuesof (1) (2) BCE (3) BCE added165,300 net retailcustomeractivations in2020,declining by 58.0%compared tolastyear. Thenetretailcustomeractivations adversely affected by the COVID-19 pandemic, with a more pronounced revenues of$3,051 million in 2020 decreasedby5.5%year (in $millions) (in $millions) impact onmedia advertisingrevenues,aswellwirelessproduct in 2020 consistedof: to 2019, due to declines across all three of our segments, which were to 2019,duedeclinesacrossallthreeofoursegments,whichwere

19 148,989 retail high-speedInternetnetcustomeractivations 33,859 retail TV net customer losses comprised of 73,050 retail TV netcustomerlossescomprisedof73,050 retail 33,859 retail 213,551 retail residentialNASnetlosses 225,739 postpaid wirelessnetcustomeractivations, and37,982 prepaid satellite TV net customer losses, moderated by 39,191 retail IPTV net satellite TVnetcustomerlosses,moderatedby39,191 retail IPTVnet wireless netcustomeractivations customer activations andotherlabourcosts,includingcontractor abour costs (netofcapitalizedcosts)includewages,salaries andrelatedtaxesbenefits, post-employment benefit plansservicecost, $13,787 Other operating costsincludemarketing, advertisingand salescommissioncosts, baddebtexpense, taxesotherthanincome taxe L Cost ofrevenuesincludes costsofwirelessdevicesandotherequipment sold,networkandcontentcosts,p and outsourcingcosts. in 2019 perating costs perating perating revenuesperating O O $22,883 20 $13,276 in 2020 (3.8%) Operating cost profile cost Operating BCE 2019 Total BCE operatingrevenues Bell Media Bell Wireline Bell Wireless Inter-segment eliminations 33% 14% overyear 53% . • • • • 19,148,810, up0.9%yearoveryear, andconsistedofthefollowing: , At December 31 service revenue of 0.4%, from reduced voice revenue, moderated Wireless operating revenues declined by 3.5% due to both lower service Bell Media operatingrevenuesdeclinedby14.5%yearoverin 2020 by higher data revenues, along with lower product revenue of 9.9%. by higherdatarevenues,alongwithlowerproductrevenueof9.9%. revenues decreasedby0.9%yearoverin2020,drivenlower and product revenues of 3.2% and 4.4%, respectively. Wireline operating and productrevenuesof3.2%4.4%,respectively.Wirelineoperating from loweradvertisingandsubscriberrevenues.

10,221,683 wireless subscribers,up2.6%compared to2019,comprised 3,704,590 retail high-speed Internet subscribers, 4.2% higher than high-speedInternetsubscribers,4.2%higherthan 3,704,590 retail 2,483,932 retail residential NAS lines, a decline of 7.9% compared to 2019 retailTVsubscribers,down1.2%compared to2019, 2,738,605 total comprised of1,806,373 retail IPTV subscribers, up2.2% year overyear, of 9,385,679 postpaid subscribers, an increase of 2.5% over last year, and 932,232 retail satelliteTVsubscribers,down7.3%yearover and 836,004 prepaid subscribers,up4.8%yearover last year abour 53% 14% 33%

Other L Cost ofrevenues (3) (2) ayments toothercarriers. 2020, BCE’s retailcustomerconnectionstotaled 2020, (1) 22,883 12,206 Operating cost profile cost Operating BCE 2020 2,750 8,683 (756) 2020 s, ITcosts,professional servicefees andrent. 33% 15% 23,793 12,317 3,217 9,001 (742) 2019 BCE In 52% c $ CHANGE . 2020Annu (910) (467) (111) (318) (14)

abour 15% 52% 33%

Other L Cost ofrevenues a l R % CHANGE (14.5%) e (3) po (3.8%) (1.9%) (0.9%) (3.5%) (2) r t

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MD&A Consolidated fi nancial analysis MD&A Consolidated fi nancial analysis $10,006 $3,253 Total BCEoperatingcostsdecreasedby3.7%in2020,compared tolast 4.6 4.5 Adjusted EBITDA BCE earnings Net BCE BCE year. Theyear-over-yeardeclinewasdrivenbylowercostsinBell Media of 13.2% and Bell Wireless of 3.7%, while Bell Wireline costs were Media of13.2%andBellWireless3.7%,whileWirelinecostswere (in $millions) (in $millions) 62 Total BCEoperatingcosts Total BCEadjustedEBITDA

Bell Media Bell Media Bell Wireline Bell Wireline Bell Wireless Bell Wireless Inter-segment eliminations 19 19

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$850 $5,365 $3,791 BCE In et earnings et djusted EBITDA A N c $2,699 $9,607 . 2020Annu 20 20 $695 $5,246 $3,666 a l R (17.0%) e po Bell Media Bell Wireline Bell Wireless r t Adjusted EBITDA BCE earnings fromdiscontinuedoperationsasaresultofgainonsale,nettaxes,$211 million and higher depreciation and amortization, partly offset by lower income taxes and higher net offsetbylowerincometaxesandhighernet and higherdepreciationamortization,partly an increase in impairment higher other expense of assets primarily at our Bell Media segment, In 2020,netearningsdecreasedby17.0%,compared to2019,mainlydueloweradjustedEBITDA, (% adjustedEBITDA margin) (in $millions) in Q4 2020 from thecompletionofsalesubstantiallyallourdatacentreoperations. in Q4 2020 from 42.1% $10,006 in 2019 42.0% $9,607 in 2020 with therevenuedecline. operating expenses is primarily attributable to lower costs associated operating expensesisprimarilyattributabletolowercostsassociated essentially stableyearoveryear, increasingby0.1%.Thereductionin (4.0%) (13,276) (2,055) (6,960) (5,017) 9,607 5,246 3,666 756 695 2020 2020 (13,787) 10,006 (2,367) (6,952) (5,210) 5,365 3,791 742 850 2019 2019 $ CHANGE $ CHANGE (119) (155) (125) (399) 511 312 193 14 (8) % CHANGE % CHANGE (18.2%) 13.2% (0.1%) (2.2%) (3.3%) (4.0%) 3.7% 1.9% 3.7% The amount of our depreciation and The amountofourdepreciationand This category includes various to the operating revenues generated during the year. income and expenses that are not related directly This • • • 4.8 4.7 Adjusted EBITDA margin of 42.0% in 2020 was relatively stable year wasrelativelystableyear Adjusted EBITDA marginof42.0%in 2020 and other costs other and acquisition Severance, BCE significant, andothercosts. significant, DEPRECIATION BCE primarily attributable to the adverse impact of the COVID-19 pandemic. Depreciation in 2020 increasedby$17 million, compared to2019,mainly BCE’s adjustedEBITDA decreasedby4.0%in2020,compared to2019, our ongoingannualreviewprocess. due to a higher asset base as we continued to invest in our broadband due toahigherassetbaseaswecontinuedinvestinourbroadband driven bylowerrevenues,moderatedreducedoperatingcosts, and wireless networks as well as our IPTV services, partly offset by an offsetbyan and wirelessnetworksaswellourIPTV services, partly amortization inanyyearisaffectedby: as legalandfinancialadvisoryfees,relatedtocompletedor a potential acquisitions,employeeseverancecostsrelatedtothepurchaseof (in $millions) increase in the estimate of useful lives of certain assets as a result of increase intheestimateofusefullivescertainassetsasaresult of includes severancecostsconsistingofchargesrelatedtoinvoluntary andvoluntary employeeterminations,aswelltransactioncosts,such business, thecoststointegrateacquiredcompanies intoouroperations,costsrelatingtolitigationandregulatorydecisions,whentheyare

Estimates oftheusefullivesassets How many assets we retired during How manyassetsweretiredduring How muchweinvestedinnewproperty, plant and equipment and intangible plant andequipmentintangible assets inpreviousyears the year $114 in 2019 everance, costs acquisition other and epreciation and amortization and epreciation S D $116 in 2020

$3,458 • • • • Severance, acquisitionandothercostsincluded: Severance, acquisitionandothercostsincluded: Depreciation BCE 2019 2020 (in $millions)

19 Acquisition andothercostsof$51 million Acquisition andothercostsof$81 million Severance costsof$63 million relatedtoinvoluntary andvoluntary employeeterminations Severance costsof$35 million relatedtoinvoluntary andvoluntary employeeterminations $3,475 20 Amortization in 2020 increasedby$43 million, compared to2019,mainly AMORTIZATION over year, declining by 0.1 pts over lastyear,over year, mainlyresultingfrom decliningby0.1 pts expenses. due toahigherassetbase. lower service revenue flow-through, partly offset by reduced operating offsetbyreducedoperating lower servicerevenueflow-through, partly $886 Amortization BCE (in $millions)

19 $929 20 BCE In c . 2020Annu a l R e po r t

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MD&A Consolidated fi nancial analysis MD&A Consolidated fi nancial analysis $1,125 • • • • • 4.11 4.10 4.9 services and radio markets, notably declines in advertising revenues, lower subscriber revenues and overall services and radio markets, notably declines inadvertising revenues, lower subscriber revenues and overall Other (expense)incomeincludesandexpenseitems,suchas: Interest expense Interest BCE 2019 2020 well as various radio markets within our Bell Media segment. Thesechargesincluded$291 millionwell asvarious radio marketswithinourBellMediasegment. allocated During Q2 2020, werecognized$452 million ofimpairment chargesforourEnglishandFrench TVservicesas During thesecondquarterof2020,weidentifiedindicatorsimpairment forcertainofourBellMediaTV charges were a result of continued advertising demand and ratings pressures in the industry resulting charges werearesultofcontinuedadvertisingdemandandratingspressuresintheindustryresulting network and infrastructure and equipment. Therewasnoimpairment ofBellMediagoodwill. network andinfrastructureequipment. assets, mainlyforprogramandfeaturefilmrights,$15 million toproperty,plantandequipmentfor allocated primarily to property, plant and equipment. Theseimpairment chargesrelatedtobroadcast allocated primarilytoproperty,plantandequipment. Impairment chargesin 2019 included$85 million allocated to indefinite-lifeintangibleassets,and$8 million licences and certain assets for various radio markets within our Bell Media segment. Theimpairment licences andcertainassetsforvarious radiomarketswithinourBellMediasegment. (in $millions) impairment testingwasrequiredforcertaingroupsofcashgeneratingunits(CGUs)aswellgoodwill. increases indiscountratesresultingfromtheeconomicimpact oftheCOVID-19 pandemic. Accordingly, to indefinite-lifeintangibleassetsforbroadcastlicences, from audiencedeclines,aswellcompetitivepressurestreamingservices. 64

19 Gains orlossesonretirementsanddisposals ofproperty,plantandequipmentintangible assets Equity incomeorlossesfrominvestmentsinassociatesandjointventures Early debtredemptioncosts share-based compensationplans Net gainsorlossesoninvestments, includinggainsorlosseswhenwedispose of, writedown Net mark-to-marketgainsorlossesonderivatives usedtoeconomicallyhedgeequitysettled or reduce ourownershipininvestments

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BCE In nance costs nance ther (expense) income mpairment of assets of mpairment Fi O I c . 2020Annu $1,110 20 a l R e po r t benefit obligations post-employment Interest on BCE (in $millions)

$63 19 $46 20

$146 million allocated to finite-life intangible allocated tofinite-lifeintangible $146 million The impacts ofchangesinmarketconditionsduringtheyearare INTEREST ONPOST-EMPLOYMENT BENEFITOBLIGATIONS INTEREST EXPENSE discount rateandalowernetpost-employment benefitobligationat compared to last year,decreased by $17 million, due to a lower conditions thatexistedatthebeginningofyear. OnJanuary 1, 2020, recognized inothercomprehensiveincome(OCI). mainly due tolower average offset interest by higher rates, partly average debtlevels. In 2020, interest expense on post-employment benefit obligations Interest onourpost-employment benefitobligationsisbasedonmarket Interest expensein 2020 decreasedby$15 million, compared to2019, the discountratewas3.1%compared to3.8%onJanuary 1, 2019. the beginningofyear.

$102 Other (expense) income (expense) Other BCE Impairment of assets BCE (in $millions) (in $millions)

$95 19 19 ($194) $472 20 20 $3,040 4.13 4.12 to common shareholders Net earnings attributable BCE Income taxes Income BCE 2020 which includedgainsonBCE’s shareofanobligationtorepurchaseat offsetbygainsonourequityinvestmentsof$43 million, were partly Other expense of $194 million includedlossesonretirementsand Other expenseof$194 million operations fromourequityinvestmentsof$38 million. Theseexpenses of $51 million, early debt redemption costs of $50 million and losses on share-basedcompensationplans economically hedgeequitysettled direction oftheongoingdevelopmentsomeourTVplatformassets which included a loss related to a change in strategic of $83 million, disposals ofproperty,plantandequipmentintangibleassets under construction,netmark-to-marketlossesonderivatives usedto (in $millions) (in $millions) fair value theminorityinterestinoneofBCE’s jointventures.

19 $1,129 in 2019 come taxescome et earnings attributable to common shareholders and EPS In N $2,498 20 $792 in 2020 $3.37 EPS BCE (in $)

19 $2.76 20 The followingtablereconcilestheamountofreported incometaxesinthestatements with incometaxescalculatedatastatutorytaxrateof26.9%for 2020 and27.0%for2019. change inthecorporate incometaxrateinAlbertaQ2 2019. Income taxesin 2020 decreasedby$337 million, compared to2019,mainlyduelowertaxable income andahighervalue offsetbyafavourable ofpreviouslyunrecognizedtaxbenefits, partly Total income taxesfromcontinuingoperations Average effectivetaxrate Applicable statutorytaxrate Add backincometaxes FOR THEYEARENDEDDECEMBER31 Change inestimaterelatingtopriorperiods Other Previously unrecognizedtaxbenefits Effect ofchangeinprovincialcorporate taxrate Uncertain taxpositions Earnings fromcontinuingoperationsbeforeincometaxes Income taxescomputedatapplicable statutoryrates Net earningsfromcontinuingoperations Non-taxable portion ofequitygains(losses) Non-taxable portion ofgainsoninvestments $3,119 $18 million whichincludedBCE’s obligationtorepurchaseatfairvalue the Adjusted net earnings net Adjusted BCE ventures, andearlydebtredemptioncostsof$18 million. 2019 Other income of $95 million included net mark-to-market gains on included netmark-to-marketgainson Other incomeof$95 million our equity investments of $72 million, which included BCE’s obligation and gains on investments of compensation plans of $138 million derivatives share-based usedtoeconomicallyhedgeequitysettled minority interest in one of BCE’s subsidiaries, offset partly by losses from (in $millions) to repurchaseatfairvalue theminorityinterestinoneofBCE’s joint

19 $2,730 20 $3.46 Adjusted EPS Adjusted BCE (in $)

19 BCE In 3,265 2,473 (792) (878) 24.3% 26.9% 792 2020 c $3.02 47 21 . 2020Annu 6 9 2 1 – 20 a l R e (1,129) (1,175) 4,353 3,224 1,129 po 25.9% 27.0% 2019 r (20) 14 25 15 t 2 5 5

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MD&A Consolidated fi nancial analysis MD&A Consolidated fi nancial analysis $3,974 4.15 4.14 2020, compared to 2019, mainly due to higher 2020, compared to2019,mainlyduehigher Capital intensity Capital Capital expenditures BCE paid duetotimingofinstallments,partly higherotherexpenseand primarily atourBellMediasegment, Free cash flowdecreasedby$390 million in Net earningsattributabletocommonshareholdersin 2020 decreased higher net earnings from discontinued operations as a result of a gain higher netearningsfromdiscontinuedoperationsasaresultofgain compared to2019,mainlyduelower other costspaid. discontinued operationsandacquisition capital expendituresandlowercashflows offset byhighercashfromworkingcapital on sale,netoftaxes,$211 million inQ4 2020 from thecompletionof offsetbylowerincometaxesand depreciation andamortization,partly due toloweradjustedEBITDA, anincreaseinimpairment ofassets by $542 million, or$0.61 per commonshare,compared to2019,mainly adjusted EBITDA andhigherincometaxes million, activities decreasedby$204 and lowerseveranceothercostspaid. In 2020,BCE’s cashflowsfromoperating (%) (in $millions) from operating activities, excluding cash from from operatingactivities,excludingcash the saleofsubstantiallyallourdatacentreoperations. 66 16.7%

19

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3.4% $108 25.9% $3,195 7.5% $671 BCE In apital expenditures apital ash flows ash C C c $4,202 . 2020Annu 18.4% 20 4.5% $125 25.9% $3,161 10.5% $916 a l R e po Bell Media Bell Wireline Bell Wireless r t $7,958 2019. Theyear-over-yearincrease Cash flows from operating activities operating from flows Cash BCE WTTP networkstomorelocationsalongwiththelaunchofour WTTP BCE capitalexpendituresincreasedby5.7%in 2020 over of theCanadianpopulation, respectively.Additionally,weinvestedincapacity enhancements a corresponding capital intensity ratio of 18.4%, up 1.7 pts compareda corresponding tothe16.7%achievedin capitalintensityratioof18.4%,up1.7 pts and the continuedrolloutofourLTE-A network, whichattheendof 2020 reached2 also drivenbythe (in $millions) in Bell Wireless and Bell Media, moderated by reduced spending in Bell Wireline. We continued in BellWirelessandMedia,moderatedbyreducedspendingWireline.Wecontinued to focus our investments on network expansion with the ongoing deployment of our FTTP and and to focusourinvestmentsonnetworkexpansion withtheongoingdeploymentofourFTTP fulfillment, customerself-serveandautomationtools,aswell fulfillment, to support increaseddemandduetotheCOVID-19 pandemic, aswellinvestments inonline

19 $7,754 20 COVID-19 (2.6%) share, compared to$3,119 million, or$3.46 per commonshare,in2019. Excluding theimpact ofseverance,acquisition andothercosts,net hedge equity settled share-based compensation plans, net gains (losses) share-basedcompensationplans,netgains(losses) hedge equitysettled discontinued operations,netoftaxand on investments,earlydebtredemptioncosts,impairment ofassetsand mark-to-market gains(losses)onderivatives usedtoeconomically adjusted netearningsin 2020 was$2,730 million, or$3.02 per common pandemic. in capital spending was driven by greater investments capital spendingwasdrivenbygreaterinvestments $3,738 Free cash flow Free cash BCE (in $millions)

19 $3,348 the 20 mobile prior non-controlling interest(NCI) improved app functionality, year to $4,202 million for year to$4,202 million for 5G networkinJune 2020 (10.4%) 6 % and 96% % and96% , $9,001 +2.6% 5 5.1 We grewourwireless FINANCIAL PERFORMANCE ANALYSIS speaks toourfocusondrivingservicerevenueandadjustedEBITDA growththrough growth subscriber Total Revenues Wireless Bell REVENUES BELL WIRELESSRESULTS (1) 2020 PERFORMANCEHIGHLIGHTS (in $millions) in 2020 customers. Animpressiveresultinthecontextof net accretive smartphonetransactions. Total BellWirelessrevenues Total operatingproductrevenues Total operatingservicerevenues

External productrevenues External servicerevenues Inter-segment productrevenues Inter-segment servicerevenues 19 2020, we updated our definition of ABPU to include monthly billings related to device financing receivables owing from customers on contract. Consequently, we restated previously we restated previously Consequently, 2020, weupdated ourdefinitionofABPUtoincludemonthlybillingsrelateddevicefinancingreceivables owingfromcustomersoncontract. In Q1 reported 2019 ABPUforcomparability. Seesection10.2, usiness segment analysis 29% ell Wireless 71% postpaid andprepaid subscribers,thevast majorityofwhichwerenew

B B $8,683 20

29% 71% (3.5%)

Product Service 225,739 in 2020 in activations net Postpaid vs. 2019 Declined 43.8% customer baseby2.6%in

Non-GAAP financialmeasuresandkeyperformanceindicators(KPIs)

Adjusted EBITDA Wireless Bell (% adjustedEBITDA margin) (in $millions) 42.1% $3,791 in 2019 37,982 in 2020 in activations net Prepaid vs. 2019 Declined 66.5% 42.2% $3,666 in 2020

2020 with the

challenging COVID-19 situation that challenging COVID-19 situationthat 8,683 2,514 2,508 6,169 6,122 2020 47 6 0.99% in 2020 in churn Postpaid vs. 2019 Improved 0.14 pts the additionof (3.3%)

, in this MD&A forthedefinitionofABPU. , inthisMD&A

9,001 2,629 2,623 6,372 6,323 2019 49 6

263,721 total 263,721 total BCE In $ CHANGE mobile phone mobile phone (5.4%) per user (ABPU) user per billing average Blended 2019: $68.36 2020: $64.69 per month (318) (115) (115) (203) (201) c (2) . 2020Annu –

a l R % CHANGE e po (3.5%) (4.4%) (4.4%) (3.2%) (4.1%) (3.2%)

(1) r t –

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MD&A Business segment analysis Bell Wireless MD&A Business segment analysis Bell Wireless • • • • • • • • 2019, drivenby: Service revenuesdeclinedby3.2%in2020,compared tolastyear, dueto: OPERATING COSTSANDADJUSTEDEBITDA BELL WIRELESSOPERATING METRICS (1) Blended ABPU Bell Wirelessoperatingcostsdecreasedby3.7%in2020,compared Bell Wireless operating revenues to 2019,drivenbybothlowerserviceandproductrevenues. to 2019,drivenby: 68 Total adjusted EBITDA margin Adjusted EBITDA Subscribers Gross activations Blended churn%(averagepermonth) Operating costs Blended ABPU($/month) Net activations

Accommodations providedtocustomersasaresultofthe shareable plans sales COVID-19 pandemic, including delayed implementation of planned price plans plans withhigherdatathresholds, includingunlimitedandshareable Lower discretionaryspending,mainlyreducedadvertising and Reduced labourcostsduetotheCanadaEmergencyWage Subsidy Lower productcostofgoodssoldassociatedwithreduced device Reduced dataoveragesdrivenbygreatercustomeradoptionof Lower outboundroamingrevenuesmainlyfromreducedcustomer Lower data overages driven by greater customer adoption of monthly Decreased outboundroamingrevenues fromreducedcustomertravel (CEWS), a wage subsidy program offered by the federal government (CEWS), a wagesubsidy program offered bythefederal government closure ofourretaildistributionchannels due totheCOVID-19 pandemic employee travelasaresultoftheCOVID-19 pandemic greater mixofpremiumdevicesandhigherhandsetcosts mitigated theimpact onourretailemployeesfromthetemporary by customers monthly planswithhigherdatathresholds,includingunlimitedand increases and revenue credits due to financial difficulty experienced increases andrevenuecreditsduetofinancialdifficultyexperienced to eligibleemployersasaresultoftheCOVID-19 pandemic travel asaresultoftheCOVID-19 pandemic 2020, we updated our definition of ABPU to include monthly billings related to device financing receivables owing from customers on contract. Consequently, we restated previously werestatedpreviously Consequently, 2020, weupdated ourdefinition of ABPUtoincludemonthlybillingsrelateddevicefinancingreceivables owingfromcustomersoncontract.

In Q1 reported 2019 ABPUforcomparability. Seesection10.2, | Prepaid Postpaid Prepaid Postpaid Prepaid Postpaid Prepaid Postpaid

BCE In , primarilydrivenbytheCOVID-19 pandemic, offsetinpart bya c . 2020Annu of $64.69 decreased by5.4%in2020,compared to of$64.69 decreased a l R (1) e po r t decreased by 3.5% in 2020, compared Non-GAAP financialmeasuresandkeyperformanceindicators(KPIs) , which , which • • • • These factors were partly offsetby: These factorswerepartly These factors were partly offsetbythecontinuedgrowthinourpostpaidThese factorswerepartly These factors were partly offsetby: These factorswerepartly 42.2% in 2020, 2019, mainly driven by revenue decline, moderated by lower operating 2019, mainlydrivenbyrevenuedecline,moderatedloweroperating prices andlowerdiscounting. offsetbyincreasedsalesofpremiumdevices,higherhandset partly Bell WirelessadjustedEBITDA Product revenues decreased by 4.4% in 2020, compared to last year, closure ofourretaildistributionchannelsduringtheyear. Thiswas driven bylowerdeviceupgrades and grossactivations, aswell costs. Adjusted EBITDA margin, based on wireless operating revenues of and prepaid subscriberbasecombinedwiththeflow-throughofrate by 0.1 pts. lower consumer electronics sales at The Source from reduced retail lower consumerelectronicssalesatTheSourcefromreducedretail increases. traffic asaresultoftheCOVID-19 pandemic, includingthetemporary

The flow-through ofrateincreases 5G network Customer accommodations, including delayed implementation of Customer accommodations,including delayedimplementationof financing plans price increases and revenue credits due to the financial difficulty price increasesandrevenuecredits duetothefinancialdifficulty Higher network operating coststosupport Higher monthlybillingsrelated to increasedadoptionofdevice experienced bycustomersasaresult oftheCOVID-19 pandemic 10,221,683 9,385,679 1,286,307 1,805,732 836,004 225,739 263,721 519,425 37,982 (5,017) 3,666 64.69 4.60% 0.99% 1.28% 42.2% 2020 2020 wasrelativelystablecompared tolastyear 9,159,940 9,957,962 1,568,729 2,117,517 , in this MD&A forthedefinitionofABPU. , inthisMD&A 798,022 113,454 401,955 515,409 548,788 (5,210) 3,791 68.36 4.44% 1.13% 1.39% 42.1% 2019 2019 decreasedby3.3%in2020,compared to (282,422) (176,216) (251,688) (311,785) 225,739 263,721 $ CHANGE (75,472) (29,363) 37,982 CHANGE (3.67) the rollout of our mobile the rolloutofourmobile (125) 193 , increasing increasing % CHANGE % CHANGE (0.16) pts (66.5%) (18.0%) (43.8%) (48.8%) (14.7%) 0.14 pts 0.11 pts (5.4%) (3.3%) (5.4%) 2.5% 4.8% 2.6% 0.1 pts 3.7% • • • Total grosswirelessactivations The 2020 wirelessmarketinCanadawaschallengedbytheCOVID-19 The Canadian wireless industry continues to be highly competitive and The Canadianwirelessindustrycontinues tobehighlycompetitiveand These factors, combined with increases in overall data usage, which is The Canadianwirelessindustryhasexperiencedstrongsubscriber This sectioncontainsforward-lookingstatements,includingrelatingtoourbusinessoutlook. Refertothesection 2021. By comparison, the wireless penetration rate in the U.S. is well COMPETITIVE LANDSCAPE AND INDUSTRY AND TRENDS COMPETITIVE LANDSCAPE COMPETITIVE LANDSCAPE levels of competition wireless marketalsocontinuedtoexperiencehighlevelsofcompetition workers offloadingtheirmobiledevicetrafficontoWi-Fi.TheCanadian COVID-19 pandemic. GrowthinABPUhad pandemic as wireless industry roaming revenue significantly declined declined pandemic as wireless industry roaming revenue significantly plans. However, ABPUmoderationwasexacerbatedbythe popularity ofdatasharingplansandanevolving customermixshift plans anddevicefinancing by allnationalplayers. pandemic, therewereassociateddeclinesinchargeableusagefrom However, various formsofpublichealthmeasuresduringtheglobal Blended wireless churn of 1.28% improved by 0.11 pts in 2020, compared over 100%,andevenhigherinEuropeAsia. capital-intensive, withcarrierscontinuing toexpand andenhancetheir of 5G,ledtowidespreadadoption andpromotionofunlimiteddata expected toincreasedramatically withtheongoingcommercialization of theCanadian growth inrecent years, supported by immigration and population growth; broadband wireless networks,including nationally migrated theircustomerbasestounlimiteddataanddevicefinancing mobile devicesandservicesbybothyoungeroldergenerations. and larger allotments of data, in addition to other factors, such as the and globaltravelrestrictions in Canada in 2020, with further increases in penetration expected in in Canada2020,withfurtherincreasespenetrationexpected in 2020. The wireless penetration rate increased to approximately 94% in spectrum. looking statementsatthebeginningofthisMD&A. towards non-traditional wireless devices and tools such as video chats. towards non-traditionalwirelessdevicesandtoolssuchasvideochats. from customers’reduced travelactivity.Additionally,withlarge numbers functionality ofdataand related applications; and the adoption of the trendtowardmultipledevices,includingtablets;expanding to 2019. to 2019,duebothlowerpostpaid andprepaid grossactivations.

Postpaid churn Prepaid grossactivations decreasedby5.4%in2020,compared Postpaid grossactivations decreasedby18.0%in2020,compared due to the COVID-19 pandemic, includingthetemporary closureof due totheCOVID-19 pandemic, due to the COVID-19 pandemic, includingthetemporary closureof due totheCOVID-19 pandemic, retail distributionchannelsduringtheyear, andstrongsubscriber retail distributionchannelsduringtheyear as aresultoftheCOVID-19 pandemic activations fromLuckyMobilein2019 last year, drivenbylowerdeactivations fromreducedmarketactivity to lastyear, drivenbyreducedmarketactivityandlessretailtraffic to lastyear, drivenbyreducedmarketactivityandlowerretailtraffic , which pandemic, includingthetemporary closureofretailstores has led to continued declines in chargeable data usage hasledtocontinueddeclinesinchargeabledatausage workforce workingfromhomeduringthe of0.99%in2020improvedby0.14 pts, compared to , hampered the growth of new subscribers , hamperedthegrowthofnewsubscribers decreasedby14.7%in2020,compared already through been moderating as carriers been moderatingascarriers material investments material investments COVID-19 COVID-19 COVID-19 COVID-19

• • • • • • Competitors The introductionofunlimitedwirelessdataanddevicefinancing 9,385,679 postpaid subscribersand836,004 prepaid subscribers,an several years; drive lower costs as a result of lower device discounting several years;drivelowercostsasaresultofdevicediscounting AND INCREASED ADOPTIONOFUNLIMITEDDATA Wireless subscribers INDUSTRY TRENDS postpaid serviceremainedstablecompared tolastyearat92%. Net activations declinedby48.8%in2020,compared to2019,due of 2020,theproportion ofBellWirelesscustomerssubscribingtoour consumption, particularly astheindustryshiftsto5Governext compared totraditionalsubsidyplans,e-billing andreducedcallcentre charges or higher priced plans look to optimize their bills. Longer term, due torevenueandABPUpressureascustomerswithhighoverage data plans are hav an increase of 2.6% more affordabletoCanadians. activity. Inaddition,unlimiteddata and Unlimited wireless are anatural evolution ofcompetition in the market. increase of 2.5% and 4.8%, respectively, year over year. At the end to bothloweryear-over-yearpostpaid andprepaid netactivations. the need to make wireless data and the latest smartphone devices the needtomakewirelessdata and thelatestsmartphonedevices these newcustomeroptionsareexpectedtoencouragegreaterdata

Smaller facilities-basedwirelessserviceprovider Vancouver, EdmontonandOttawa,aswellinseveral communities which providesserviceinSaskatchewan; Québec; Saskatchewan TelecommunicationsHoldingCorporation, (Rogers) andtheTelusCorporation groupof Communications Inc. Regional facilities-based wireless service providers Vidéotron Ltée Regional facilities-based wireless service providers Vidéotron Ltée Large facilities-basednationalwirelessserviceprovidersRogers Prepaid netactivations decreasedby66.5%in2020,compared to Postpaid netactivations Prepaid churn ( (Vidéotron), whichprovidesserviceinMontréalandotherparts of deactivations customer deactivations compared to 2019, companies (Telus) market Island; and Xplornet last year, drivenbylowergrossactivations, offsetin part byfewer in Manitoba in southwesternOntario tions Inc. ( the prioryear, duetolowergrossactivations andgreater customer ) Eastlink DEVICE FI , whichprovides service inNova ScotiaandPrinceEdward Shaw NANCING ) of 4.60% in 2020 increased by 0.16 pts in2020, of4.60%in2020increasedby0.16 pts , which currently provides service inToronto,, which currently Calgary, due to ing , Communications Inc. compared to 2019. This was comprised of a near-term unfavourable financial impact, at December 31, 2020 totaled10,221,683, atDecember 31, 2020 decreasedby43.8%in2020,compared to greater competitive intensity in the discount greater competitive intensityinthediscount PLANS device BCE In Caution regardingforward- Bragg Communications Inc. Bragg CommunicationsInc. , which provides service financing c . 2020Annu Shaw Communica plans a l R e address address po r plans plans t

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MD&A Business segment analysis Bell Wireless MD&A Business segment analysis Bell Wireless This sectioncontainsforward-lookingstatements,includingrelatingtoourprojectedfinancialperformancefor2021 The demand for wireless data services is expected to continue to grow, BUSINESS OUTLOOK AND ASSUMPTIONS OUTLOOK AND BUSINESS services-3 (AWS-3), and 2500 MHz spectrum auctions that occurred MHzspectrumauctions thatoccurred and 2500 services-3 (AWS-3), services and applications in the areas of retail, business, transportation, SIGNIFICANT INVESTMENTSINWIRELESSNETWORKS ACCELERATING DATA CONSUMPTION 2021 OUTLOOK wireless carriers’ networks and their ability to manage and service wireless carriers’networksandtheirabilitytomanageservice prepaid mobile phone subscriber base expansion. We expect ABPU to We also remain focused on sustaining our market share of national We alsoremainfocusedonsustainingourmarketshareofnational We plantodeliveradjustedEBITDA growthin 2021 fromflow-through We expect revenue growth to be driven primarily by postpaid and Fast growthinmobiledatatrafficisincreasinglyputtingastrainon higher revenues from the flow-through of pricing changes, as well as IoT higher revenuesfromtheflow-throughofpricingchanges,aswellIoT continue tobeimpacted negativelybylowerroamingrevenuesdue operators’ postpaid netadditionsinadisciplinedand cost-conscious of higherrevenueanddisciplinedcostmanagement. data allotments,andprepaid customergrowth.Wewillseektoachieve outlook, objectives, plans and strategic priorities. Refer to the section IoT representsagrowth area for data services.Inthe consumer market, due to revenue willcontinuetobenegativelyimpacted ascustomerscontinue manner, while also growing our share of new industry prepaid net revenue resultingfromcontinuedadoptionofunlimitedplansandlarger adoption ofserviceslike5G,internationalroamingandresumption by families;andthegrowthofunlimiteddataplans.Greatercustomer additions. and urban city optimization. Our intention is to introduce new services automation tocameras,becomesubiquitous.However, dataoverage and developed by 5G networks applications; increasingadoptionofsharedplanswithmultipledevices a largerappetite formobileconnectivity,socialnetworkingandother and 5G,thatprovidearicheruserexperiencelowernetworklatency; to ongoing COVID-19 travel restrictions, reductions in data overage restrictions,reductionsindataoverage to ongoingCOVID-19 travel to themarketinawaythatbalancesinnovation withprofitability. to migrateunlimitedandlargeallotmentdataplans. the industryaswirelessconnectivityoneverydaydevices,fromhome travel post-COVID-19, as well as IoT services and applications enabled this traffic.IndustryCanada’s 600 MHz, 700 MHz, advanced wireless 70

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BCE In : ongoing investment in faster network technologies, such as LTE-A c . 2020Annu a l R e po r t , should also contribute to the demand for should also contribute to the demand for Caution regarding forward-looking statements • • • • • • • • 5G worldwillrequirehigher-bandspectrum,including3.5 since 2014 provided wireless carriers with prime spectrum to roll out since 2014 providedwirelesscarrierswithprimespectrumtorollout ASSUMPTIONS Canadian wireless carriers that allows for multiple channels of spectrum Canadian wirelesscarriersthatallowsformultiplechannelsofspectrum beingemployedby Carrier aggregationisatechnologycurrently Early 5GspeedsaresimilartopeakenabledbyLTE-A mobile (GHz growth intheindustry. expect 5Gtechnologytoprovideasignificantopportunity forfuture We government’s auctionprocessscheduledtooccurinJune 2021. consumers higherspeeds,lowerlatencyandtheabilitytosupport utilization ofcarriers’spectrumholdingsandwillalsopave thewayfor networks. The real benefit of 5G will come from the ability to offer networks. Therealbenefitof5Gwillcomefromtheabilitytooffer national operatorsin 2020 utilizinglow-bandandmid-bandspectrum. mobile 5Gservice.Earlywirelessnetworksweredeployedbythe as the faster delivery of dataservices. and data transfer rates. Investments infibre backhaul tocell sites and faster next-generationwirelessnetworksandbuildgreatercapacity. the massive deployment of devices connected to the Internet as well the massivedeploymentofdevicesconnectedtoInternetaswell the deploymentofsmall-celltechnologyfurtherincreaseefficient to beusedtogether, increasingnetworkcapacity therebysignificantly

Unfavourable impact onblendedABPU,drivenbyreducedoutbound COVID-19 pandemic, reduceddataoveragerevenueduetocontinued Continued deployment of 5G wireless network offering coverage that Continued adoptionofsmartphonedevices,tabletsanddata Continued growthofourprepaid subscriberbase No material financial, operational or competitive consequences of No materialfinancial,operationalorcompetitiveconsequences of LTE-A devicesandnewdata services Maintain ourmarketshareofnationaloperators’wirelesspostpaid changes inregulationsaffectingourwirelessbusiness our overallsubscriberbase roaming revenueduetotravelrestrictionsasaresultofthe by increasingadoptionof net additions adoption ofunlimitedplansandtheimpact ofahigher prepaid mixin applications, aswelltheintroduction ofmore5G,4GLTE and Increased adoption ofunlimited dataplansand Improvement insubscriberacquisitionandretentionspending,enabled is competitivewithothernationaloperatorsincentresacrossCanada ) spectrum,whichwillbecomeavailable followingthefederal device financing Bringing at the beginning of this MD&A. plans business andour2021business device financing Canada into this true Canada into thistrue Gigahertz Gigahertz plans • • • • • This section discusses certain principal business risks specifically related to the Bell Wireless segment. This sectiondiscussescertainprincipalForadetaileddescriptionoftheother businessrisksspecificallyrelatedtotheBellWirelesssegment. PRINCIPAL RISKS BUSINESS DRIVERS GROWTH KEY Business risks. RISK POTENTIAL IMPACT AGGRESSIVE COMPETITION principal risksthatcouldhaveamaterialadverseeffectonourbusiness,includingthoserelatedtotheCOVID-19 pandemic, refertosection9,

The intensity of competitive activity from The intensityofcompetitiveactivityfrom A greaternumberofcustomersonour4GLTE, LTE-A and5Gnetworks such as multi-product bundles, to attract such asmulti-productbundles,toattract Continued growthofourprepaid subscriberbase plans based on sophisticated pricing plans basedonsophisticatedpricing plans, increasediscounts,offershared providers, non-traditional players providers, non-traditionalplayers EBITDA, ABPUandchurnwouldlikely Pressure onourrevenue,adjusted Higher, butslowing,Canadianwirelessindustrypenetration new customers requirements orofferotherincentives, aggressively pursuenewtypesofprice result ifcompetitorscontinueto and resellers national wirelessoperators,regional facilities-based wireless service facilities-based wirelessservice • • POTENTIAL IMPACT RISK REGULATORY ENVIRONMENT

structure, limit our flexibility, improve structure, limitourflexibility,improve wireless business Greater regulation could influence Greater regulationcouldinfluence Greater regulationofwirelessservices, pricing and infrastructure (e.g., additional pricing andinfrastructure(e.g.,additional of our services,andnegativelyimpact network investment and the market network investmentandthemarket bidding) and limitationsplacedonfuturespectrum mandated accesstowirelessnetworks limit network-based differentiation limit network-baseddifferentiation the financial performanceofour the businessposition ofourcompetitors, • •

Continued adoption of smartphone devices, tablets, and data applications Increased adoption ofunlimited dataplansand • • POTENTIAL IMPACT RISK MARKET MATURITY

A maturing wireless market could A maturingwirelessmarketcould Slower subscriber growth due to high Slower subscribergrowthduetohigh Canadian smartphone penetration and Canadian smartphonepenetrationand pressure on the financial performance pressure onthefinancialperformance of our wirelessbusiness of acquisitionandretention,putting challenge subscribergrowthandcost reduced orslowerimmigrationflow BCE In c device financing . 2020Annu a l R e po plans r t

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MD&A Business segment analysis Bell Wireless MD&A Business segment analysis Bell Wireline $12,317 (1.2%) +4.2% The advantages of fast, reliableandhigh-capacity broadbandnetworksinachallenging The advantages offast, 5.2 FINANCIAL PERFORMANCE ANALYSIS Subscriber growth Retail high-speed Internet Revenues Wireline Bell Subscriber decline Subscriber TV Retail 2020 PERFORMANCE HIGHLIGHTS COVID-19 (in $millions) in 2020 in 2020 term to grow Internetrevenue. today, positions usfavourably inbothourconsumerandbusinesssegmentsoverthelong leading 148,989retailInternetnetadditionsin2020,up building, with thefastestfibrenetworkand 72 and competitive marketplace,togetherwithlowercustomerchurn,droveanindustry-

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BCE In 2% 5% 30% 63% ell Wireline ell B c $12,206 . 2020Annu 20 2% 4% 29% 65% pandemic on a l R (0.9%) e po Other services Data services Product Voice r t customer activity.Thebroadbandfootprintadvantage thatwe are 39,191 148,989 Retail IPTV Retail activations subscriber Total net Retail high-speed Internet Adjusted EBITDA Wireline Bell Total net subscriber activations subscriber Total net (% adjustedEBITDA margin) (in $millions) in 2020 in 2020 43.6% $5,365 in 2019 Wireless HomeInternet 43.0% $5,246 in 2020 9.7 %, despitetheimpact of (2.2%) (7.9%) 10.3 million Subscriber decline Subscriber lines NAS residential Retail Homes and businesses footprint WTTP and Fibre in 2020 at theendof2020 speeds in the market speeds inthemarket the the • • 0.1%, compared tolastyear, dueto: REVENUES OPERATING COSTSANDADJUSTEDEBITDA BELL WIRELINERESULTS with lowerproductsales,moderatedbyhigherdataservicerevenues. year, compared to2019. Bell Wirelineoperatingcosts Bell Wirelineoperatingservicerevenues Bell Wirelineoperatingrevenues n.m.: notmeaningful to lastyear, Total Bell Wirelinerevenues Total operatingproductrevenues Total externalservicerevenues Total operatingservicerevenues Total externalproductrevenues Adjusted EBITDA margin Adjusted EBITDA Voice Equipment andother Other services Data Operating costs Data Inter-segment servicerevenues Inter-segment productrevenues

• • • • • • These factors were partly offsetby: These factorswerepartly Higher costsattributabletotheCOVID-19 pandemic, mainlyrelated Data revenuesgrewby1.0%in2020,compared totheprioryear, cleaning andsupplies, andincreaseddonations driven by: to employee redeployment, purchase of PPE, incremental building purchaseofPPE,incrementalbuilding to employeeredeployment,

services Continued legacydataerosion Greater acquisition,retentionandbundlediscountsonresidential Ongoing declineinoursatelliteTVsubscriberbase provided tocustomersasaresultoftheCOVID-19 pandemic Reduced business solutions servicesrevenues,drivenby lower Delayed implementation of planned price increases and waiving of Higher retailInternetandIPTVsubscriberscoupledwiththeflow- customer spending and delays in accessing customer sites as a customer spendinganddelaysinaccessingsitesasa result oftheCOVID-19 pandemic residential Internetoveragechargesduetotheaccommodations through ofpricingchanges from the ongoingerosioninvoice revenuescombined were essentially stable in 2020, increasing wereessentiallystablein2020,increasing declinedby0.9%in2020,compared decreased by 0.4% in the decreasedby0.4%inthe • • • Bell Wirelineoperatingproductrevenues compared tolastyear, duetolowercustomerspending anddifficulties and lowersales,mainlytothegovernmentsector. accessing customerpremises,asaresultoftheCOVID-19 pandemic,

• • • • • These factors were partly offsetby: These factorswerepartly Voice revenues Greater pensionexpensereflecting ahigher experienced bycustomersasaresultoftheCOVID-19 pandemic discount rate resulting from: Increased bad debt expense driven by greater financial difficulties Increased baddebtexpensedrivenbygreaterfinancialdifficulties

The flow-throughofpricingchanges Greater NAS line erosion due to technological substitution to wireless Greater NAS line erosion due to technological substitution to wireless Higher usage of conferencing services by business customers as Higher usageofconferencingservicesbybusinesscustomersas Delayed implementation of planned price increases and other Large businesscustomer conversions to IPandInternet due totheCOVID-19 pandemic customer accommodations,duetotheCOVID-19 pandemic data services a result of an increased number of employees working from home a resultofanincreasednumberemployeesworkingfromhome and Internetbasedservices 12,206 11,341 11,662 (6,960) 5,246 7,691 3,402 43.0% 544 321 494 543 248 2020 2020 49 1 declinedby4.5%in2020,compared tolastyear, 12,317 11,432 11,713 (6,952) 5,365 7,617 3,564 43.6% 604 281 556 604 251 2019 2019 48 – BCE In decreased by 9.9% in 2020, decreasedby9.9%in2020, $ CHANGE $ CHANGE (111) (119) (162) (60) (91) (51) (62) (61) c DB 40 74 (3) (8) . 2020Annu 1 1 cost a lower due toalower a l R % CHANGE % CHANGE (11.2%) (10.1%) e 14.2% po (0.6) pts (0.9%) (9.9%) (1.2%) (0.8%) (0.4%) (2.2%) (4.5%) (0.1%) -based 2.1% 1.0% n.m. r t

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MD&A Business segment analysis Bell Wireline MD&A Business segment analysis Bell Wireline • • This was services,alsounfavourably impactedTV serviceswithOTT activations. offset by: These factorswerepartly BELL WIRELINEOPERATING METRICS COVID-19 pandemic, alongwithalower number ofcustomerscoming COVID-19 pandemic Maturing Fibe TV and Alt TV markets, reduced COVID-19 pandemic. year, compared to2019,duelowerdeactivations attributableto promotional offers, Retail residential NAS net losses Retail satelliteTVnetcustomerlosses Retail IPTV net subscriber activations Retail high-speed Internet subscriber net activations n.m.: notmeaningful a more mature subscriber base geographically offers, andreflectedamorematuresubscriberbasegeographically off of promotional offers. This was partly offset by continued substitution offsetbycontinued substitution off ofpromotional offers.Thiswaspartly compared to 2019, duetofewerdeactivations, resultingfromthe closure ofretaildistributionchannelsduringtheyear, duetothe compared tolastyear, drivenbyreducedmarketactivity,mainly offers, aswellincreasednetactivations andWTTP inourFTTP better-suited forsatelliteTVservice. new servicefootprintexpansion, andhighersubstitutionoftraditional retail distributionchannels,includingtheimpact residential netadditionsduetoreduceddeactivations asaresultof by 9.7%intheyear, compared to2019,drivenbygreaterretail attributable tofewerpromotionaloffersandlowertrafficinour VOICE Retail TV Retail high-speedInternet DATA launched inOntarioandQu to wirelessandInternet-based technologies. the COVID-19 pandemic, fewer customers coming off of promotional footprints. Thiswasmoderatedbylowergrossactivations primarilyin the COVID-19 pandemic and fewer customers coming off of promotional 74 Total retail subscribers Retail residentialNASlines Retail residentialNASlinesnetlosses Retail netsubscriber(losses)activations Retail subscribers Retail netactivations

Reduced discretionary spending mainly on employee travel, advertising Reduced discretionaryspendingmainlyonemployeetravel,advertising Lower costofgoodssoldandTVprogrammingcontentcosts, of associated withtherevenuedecline and salespromotion

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BCE In the COVID-19 pandemic c partly partly . 2020Annu mitigated byfewerdeactivations asaresultofthe and a l R , a lower number of customers coming off of s e , alongwithdelayedsponsorships, a ramp-upinactivations fromVirgin TV, which po r t é bec inJuly 2020. improved by 18.9% in 2020, declined by 57.2% in 2020, improvedby14.5%inthe from thetemporary increased as a result as aresult • Total retail TVnetcustomer losses Total retailTVsubscribers 43.6% achievedlastyear, attributabletolowerrevenueflow-through 2.2% from1,767,182 subscribers reported attheendof2019. 2,772,464 subscribers attheendof2019. 2019, driven by lower revenues and higher operating expenses. Adjusted 2019, drivenbylowerrevenuesandhigheroperatingexpenses.Adjusted 2,483,932 declined by 7.9%, compared to the end of 2019. This represented same period lastyear, drivenbylowerIPTVnetactivations, moderated were unfavourable year over year by 39,912 in 2020, compared to the December 31, 2020,up4.2%fromtheendof2019. EBITDA margin of43.0% in 2020 decreased by 0.6 pts, compared to the December 31, 2020 were2,738,605,representinga1.2%declinefrom Bell WirelineadjustedEBITDA Retail satelliteTVsubscribers totaled1,806,373,up Retail IPTVsubscribersatDecember 31, 2020 Retail high-speed Internet subscribers Retail residentialNASsubscribers down 7.3%from1,005,282 subscribers reported attheendof2019. channels duringtheyear, duetotheCOVID-19 pandemic. our residential and small business markets, resulting from lower market our residentialandsmallbusinessmarkets,resultingfromlowermarket driven byfewerdeactivations primarilyduetotheCOVID-19 pandemic. and incrementalexpensesdrivenbytheCOVID-19 pandemic. by fewersatelliteTVnetlosses. activity, mainly attributable to reduced traffic in our retail distribution activity, mainlyattributabletoreducedtrafficinourretaildistribution an improvement over the 8.9% rate of erosion experienced in 2019, an improvement overthe8.9% rate of erosion experiencedin2019,

Labour savings from reduced vendor contract costs, lower headcount and fewercallvolumes toourcustomerservicecentres 1,806,373 2,738,605 2,483,932 3,704,590 (213,551) 932,232 148,989 (73,050) (33,859) 39,191 2020 2020 2020 1,005,282 1,767,182 2,772,464 2,697,483 3,555,601 (263,325) 135,861 (85,423) 91,476 6,053 2019 2019 2019 (IPTVandsatelliteTVcombined)at declinedby2.2%in2020,compared to atDecember 31, 2020 totaled932,232, (IPTV and satellite TV combined) (IPTVandsatelliteTV combined) a eebr 1 2020of 31, atDecember (213,551) 148,989 (73,050) (33,859) (39,912) (52,285) 39,191 12,373 49,774 13,128 CHANGE CHANGE CHANGE ttld37450 at totaled 3,704,590 % CHANGE % CHANGE % CHANGE (57.2%) 14.5% 18.9% (7.3%) (7.9%) (1.2%) 2.2% 4.2% 9.7% n.m. The financialperformanceoftheoverallCanadianwireline This sectioncontainsforward-lookingstatements,includingrelatingtoourbusinessoutlook. Refertothesection 46%. Other non-facilities-based competitors also offer local and long 46%. Othernon-facilities-basedcompetitors alsoofferlocalandlong 6. Similar totheCanadianwirelessindustry,wirelinemarketsand COMPETITIVE LANDSCAPE AND INDUSTRY AND TRENDS COMPETITIVE LANDSCAPE satellite TVandregionalproviders. subscriber growth is expected to continue over the coming years. An subscriber growthisexpectedtocontinueoverthecomingyears.An substitution to wireless and OTT services,aswellbyongoing substitution towirelessandOTT COMPETITIVE LANDSCAPE with working and learning from home, demand for wireline services surged, Our IPTV platform (Fibe TV where,whenandhowto Canadians withmorechoiceaboutwhat, pandemic. Althoughtheresidentialhigh-speedInternetmarketis premises. Conversely,withlargenumbersofworkersandstudents While CanadiansstillwatchtraditionalTV, digitalplatforms areplaying Physical distancingrequirementsimpacted traditionalwireline continuing to erode traditional telephone providers’ market share of continuing toerodetraditionaltelephoneproviders’marketshare of customers. Sustained competition from cable companies is also conversion toIP-baseddataservicesandnetworksbylargebusiness declines inlegacyvoice servicerevenuesresultingfromtechnological declined. Canada’s fourlargestcablecompanies haveanestimated5. offerings, andmarketingpromotionsfocusedonIPTV. driven byexpanded networkcoverage,enhanceddifferentiatedservice direct fibrenetworkandour of incumbentlocalexchangecarriers(ILECs)likeBellattheend2020, affected by the operations were significantly estimated 7.3 distance VoIPservicesandresellhigh-speed Internetservices. up 4% from approximately 6.3 million at the end of 2019. Bell continues up million TVsubscribers,ora5 maturing, withapenetrationrateofapproximately 88%acrossCanada, representing anationalresidential marketshareofapproximately residential localtelephony.Canada’s fourlargestcablecompanies had numerous serviceadvantages overthiscableplatform. approximately In2020,ILECsofferingIPTVservicegrew access theirvideocontent. an increasingly important role in the broadcasting industry and markets. In recentyears,threeofthelargestCanadiancableTVcompanies have launched new TV services based on the Comcast X1 video platform, platform, launched newTVservicesbasedontheComcastX1 video including Shaw,Rogers Qu andmostrecently Popular onlinevideoservicesareproviding in respectofcontent. installations as installers were looking statementsatthebeginningofthisMD&A. telecommunications marketcontinuestobeimpacted bytheongoing the endof2019.Thebalanceindustrysubscriberswereservedby the combinedcableTVandsatellitesubscriberpenetrationrate their subscriberbasebyanestimated to makegainsinmarketshareasaresultoftheexpansion ofourFTTP the networks of the four largest cable companies at the end of 2020, 6 million Internet subscribers received their service over the networks millionInternetsubscribersreceivedtheirserviceoverthe networks 2 % fromapproximately 7. network million Internet subscribers received their service over millionInternetsubscribersreceivedtheirserviceover traffic reachinghistoriclevelsduringthe 3.3 million telephony subscribers at the end of 2020, million telephonysubscribersatthe endof2020, , Alt TV 2 1 rollout of

% market share, a decrease from 53% at % marketshare,adecreasefrom53%at million at the end of 2019. An estimated million attheendof2019.Anestimated restricted from entering customers’ and Virgin TV 3 Wireless HomeInternet % toreach3. é b e cor’s Vidéotronbrand. COVID-19 ) continues to offer 1 million customers, millioncustomers, Conversely pandemic. COVID-19

in rural in rural 0 , • • • • • • • • • • • Competitors The CanadianILECscontinuetomakesubstantialinvestments in INVESTMENT INBROADBAND FIBREDEPLOYMENT INDUSTRY TRENDS with faster speeds expected in the near future as network and in-home with fasterspeedsexpectedinthe near futureasnetworkandin-home FTTP delivers FTTP DOCSIS 3.1 platforms, enablingthemtoachievespeedparity withILEC accesstomaintainandenhancetheirabilitysupportFTTP enhanced equipment evolves tosupport thesehigherspeeds.Increasingspeeds does not competitors wheretheyhavefibrede deploying broadbandfibre within theirterritories, with a focuson direct beyond 1.5 Gbps inthehomewillbeenabledthroughmodernization of are investing increasingly in IP-based servicesandhigherbroadbandspeeds.CableTVcompanies the corenetwork, butwillnotrequireanychangestothefibre. the longer term in terms of reduced latency or upload speed potential.

Telus and Allstream Inc. provide wholesale products and business providewholesale productsandbusiness Telus andAllstream Inc. Telus providesresidentialvoice, InternetandIPTVservicesinBritish • • • • • • Substitution towirelessservices,includingthoseofferedbyBell Video, Disney+,CBSAllAccessandYouTube VoIP-based local,longdistanceandInternetservices Vonage Canada(adivisionofHoldingsCorp.) offerresaleor Various others(suchasTekSavvy Solutions,Distributel,VMedia,and services, including: such asTelus,Rogers, Chubb-EdwardsandStanleySecurity systems integratorsCGIandIBM services acrossCanada U.S. or other international carriers for certain services, and electrical U.S. orotherinternationalcarriersforcertainservices,andelectrical Chromecast Columbia, AlbertaandEasternQuébec Cable TVprovidersofferingcableTV, Internetandcabletelephony Competitors for home security range from local to national companies, Customized managedoutsourcingsolutionscompetitors,suchas Other CanadianILECsandcableTVoperators voice OTT and/orvideoservices,suchasSkype,Netflix,AmazonPrime Wholesale competitors include cable operators, domestic CLECs, Digital mediastreamingdevicessuchasApple TV, Roku andGoogle utility-based telecommunicationsproviders

Shaw Direct, providingsatelliteTVservicenationwide Shaw Direct, Shaw inBritishColumbia,Alberta,Saskatchewan, Manitobaand Vidéotron inQuébec Ontario Cogeco Cable Inc. (asubsidiaryofCogeco Inc.) (Cogeco)inOntario provide cableTVandInternetservice Eastlink ineveryprovinceexceptSaskatchewan, whereitdoesnot Eastlink Rogers inOntario, NewBrunswick, NewfoundlandandLabrador and Québec however total broadband offer thesameadvanced over capabilities asFTTP ILECs’ access FTTP footprint in conjunction with their footprint in conjunction with their FTTP speeds of up to 1.5 Gbps currently, p l oyed. TheDOCSIS 3.1 platform BCE In Caution regardingforward- c . 2020Annu a l R e po r t

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MD&A Business segment analysis Bell Wireline MD&A Business segment analysis Bell Wireline This sectioncontainsforward-lookingstatements,includingrelatingtoourprojectedfinancialperformancefor2021 The growing popularity of watching TV and on-demand content The broadband network advantage that we are building across our BUSINESS OUTLOOK AND ASSUMPTIONS OUTLOOK AND BUSINESS screens. Streaming media providers, such as Netflix, Amazon Prime Video screens. Streamingmediaproviders,suchasNetflix,AmazonPrimeVideo ALTERNATIVE SERVICES TVANDOTT 2021 OUTLOOK will continue to focus on winning the home by delivering the fastest will continuetofocusonwinningthehomebydeliveringfastest well inbothourconsumerandbusinessmarketstocontinuegrowing Our overall wireline financial growth profile is expected to strengthen Our overallwirelinefinancialgrowthprofileisexpectedtostrengthen year-over-year InternetandTVnet customeradditions. progressively in 2021 as progressively in 2021 pressures andtheongoingdeclineinvoice revenue. profitability; aswellcostreductionstooffsetcompetitivepricing Wireless Home Internet We continue to enhance our Fibe TV service with additional content Home automation leadership with services such as Whole Home Wi-Fi, Home automationleadershipwith servicessuchasWholeHomeWi-Fi, home security, and video and automation, in order to drive higher home security,andvideoautomation, inordertodrivehigher customers withflexibleoptionstochoosethecontenttheywant dissipate. This is predicated on continued expansion of our retail Internet outlook, objectives, plans and strategic priorities. Refer to the section totheirbigscreenswithAltTV.directly Thisbreakthroughdeviceisalso go andaccessNetflix,AmazonPrimeVideo YouTube onSTBs.We drive greaterusageofBell’s high-speedInternetandwirelessnetworks. compete forshareofviewershipinresponse toevolving viewinghabits customers adoptservicesthatenablethemtoviewcontentonmultiple of choice; and a superior Wi-Fi experience that leverages Bell’s Smart urban, suburbanandruralservicefootprintareaspositions usextremely and features; improving year-over-year business markets operating and features;improvingyear-over-yearbusinessmarketsoperating and VirginTV(launchedin2020);theintroductionofnewproducts non-traditional offerings. We view OTT as an opportunitynon-traditional offerings. We view OTT to add and TV subscriber bases, supported service footprint by a broader FTTP and evolving theircontentandmarketstrategytocompetewiththese developments and consumerdemand.TVprovidersaremonitoringOTT streaming services in order to and Disney+ continue to enhanceOTT anywhere, particularly onhandhelddevices,isexpectedtocontinueas a keyenablerofourvideoaggregationstrategy. and capabilities, includingtheabilitytowatchrecordedcontenton broadband speeds;thebestcontentoncustomer’s TVplatform Internet market share and revenue faster than our competitors. We Internet marketshareandrevenuefasterthanourcompetitors.We l live TVservicetotheVirgininternetbase.customerscanenjoy launched VirginTVin2020,bringingourindustry- increased capabilities toourlinearandon-demandassets,provide introduced the Bell Streamer Android TV box, which allows customers introduced theBellStreamerAndroidTVbox,whichallowscustomers further scalingofBell’s app-based liveTVstreamingservicesAlt together withhigherhouseholdpenetration;furtherdeploymentof to bring all of their favourite live TV, movies, and on- 76 ive and

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BCE In o c n . 2020Annu - d emand contentonavariety ofdevices.Inaddition,we a l R e access technology in more rural communities; po the r t COVID-19 pandemic leading app-based impacts begin to beginto impacts demand content demand content , and and Caution regarding forward-looking statements The convergenceofITandtelecommunications,facilitatedbythe Technology substitution,enabledbythebroaddeploymentofhigher 2021. We intend to offset the revenue decline from traditional legacy 2021. Weintendtooffsettherevenuedeclinefromtraditionallegacy service providers are bundling network connectivity with their software service providersarebundlingnetworkconnectivitywiththeirsoftware speed Internet;thepervasive useofe-mail,messagingandsocial solutions tolargeand services. Furthermore, weintendtousemarketinginitiativesand ADOPTION OFIP-BASEDSERVICES TECHNOLOGY SUBSTITUTION while alsoinvestingindirectfibreexpansion, 5Gandnewsolutionsin will continue to create pressure on overall business markets results in will continuetocreatepressureonoverall businessmarketsresultsin which providecombinedIPvoice, dataandvideosolutions,creates Ongoing customermigrationsfromtraditionaltechnologies to COVID-19 potential cost efficiencies that compensate, in part, for reduced margins forreducedmargins potential costefficienciesthatcompensate,in part, Bell is a key provider of these substitution services, the decline in this Bell isakeyproviderofthesesubstitutionservices,thedeclineinthis key portfolios suchas Internet and private networks, cloud services, end of 2019, while the disconnection of and reduction in spending for end of2019,whilethedisconnectionandreductioninspendingfor customers. Telecommunicationscompanies areprovidingprofessional estimated torepresentapproximately 5 of connectivityservices. on deliveringnetwork-centricmanaged andprofessionalservices other customer-specificstrategiestoslowthe pace ofNASerosion, of thefuture,aswelltolowercosts.Asaresultthesefactors, evolution of IT has created significant opportunities for our business ubiquity ofIP, continuestoshapecompetitiveinvestmentsforbusiness unified communications,securityandIoT. Wewillalsocontinuetofocus migration to IP-based solutions. The development of IP-based platforms, migration toIP-basedsolutions.Thedevelopmentofplatforms, media asalternativestovoice services;andthegrowthofwireless new features such as cloud access, and security and collaboration new featuressuchascloudaccess,andsecuritycollaboration markets services,suchascloudservicesanddatahosting,thatcanhave resulting from the continuing shift from legacy to IP-based services. The and converged (IP plus legacy) equipment to market, enabling ongoing enabling ongoing and converged (IP plus legacy) equipment to market, as serviceofferings.Inaddition,manufacturerscontinuetobringall-IP whileIT and managedservices,aswellotherITservicessupport, and VoIPservices,continuetodrivelegacyvoice revenuedeclines and value enhancementstoimprovetheclientexperiencethrough and theunpredictablepace oftheeconomy’s recoveryfrom a greater business impact than traditional telecommunications services. IP-based systems and demand for cheaper bandwidth alternatives IP-based systemsanddemandforcheaperbandwidthalternatives In businesswireline,customerscontinuetolookforopportunities to leverage newtechnologiestogrowandtransformtheworkforce legacy businesscontinuesasanticipated. traditional TV (cord-cutting and cord-shaving) continues to rise. Although traditional TV(cord-cuttingandcord-shaving)continuestorise.Although footprint at theendof2020, compared toapproximately 51%atthe for telecommunicationscompanies. Wireless-onlyhouseholdswere telecommunications services by continuing to develop unique services telecommunications servicesbycontinuingtodevelopunique telecommunications servicesandproductsisexpectedtobevariable. pandemic , spendingbylargeenterprisecustomerson medium-sized businesses thatincreasethevalue 3 % of households in our wireline % ofhouseholdsinourwireline at the beginning of this MD&A. andour2021 business business the • • • • • • • KEY GROWTH DRIVERS GROWTH KEY service improvement, is expected to deliver meaningful cost savings isexpectedtodelivermeaningfulcostsavings service improvement, solutions andvalue foroursmalland ASSUMPTIONS with further operating efficiencies, enabled by the ongoing deployment with furtheroperatingefficiencies,enabledbytheongoingdeployment COVID-19 situation, ascableoperatorsandothertelecomcompetitors We are also maintaining a sharp focus on our operating cost structure to We arealsomaintainingasharpfocusonouroperatingcoststructureto We expect the overalllevel of competitiveintensityin our small and high-margin wirelinevoice andotherlegacyrevenues,competitive help offsetpressuresrelatedtothegrowthandretentionofIPTV, Internet, of newbroadbandtechnologies(fibreandfixed capabilities toexpand ourrelationshipswiththem.Wewillmaintaina repricing pressures in our residential, business and wholesale markets, repricing pressuresinourresidential,businessandwholesalemarkets, as well asthefinancialimpacts of achieve furtheroperatingefficienciesandproductivitygains. and customer retention, as well as through improving our processes to also intendtointroduceserviceofferingsthathelpdriveinnovative medium-sized and productivitygainsacrosstheorganization. IP broadbandandhostedvoice subscribers,theongoingerosionof leveraging Bell’s networkassets,broadbandfibreexpansion andservice look to these customer segments as potential growth opportunities. We focus on overall profitability by seeking to increase revenue per customer focus onoverallprofitabilitybyseekingtoincreaserevenuepercustomer

Continued aggressive residential service bundle offers from cable TV Continued aggressiveresidentialservicebundleoffersfromcableTV Continued growthinretailInternetandIPTVsubscribers Higher marketshareofindustryretailInternetandIPTVsubscribers footprints andWTTP Expansion ofFTTP competitors inourlocalwirelineareas managed andprofessionalservicessolutions Increased business customer spending on connectivity services and Increased businesscustomerspendingonconnectivityservicesand customerpenetration and WTTP Increasing FTTP Increasing wirelessandInternet-basedtechnologicalsubstitution business markets to remain high, despite the current business marketstoremainhigh,despitethecurrent the COVID-19 medium-sized pandemic WTTP ) and incremental ) andincremental . This, combined . This,combined customers by customers by • • • • • • • • • • •

Traditional high-margin product categories challenged by large Accelerating customer adoption of OTT services resulting in downsizing servicesresultingindownsizing Accelerating customeradoptionofOTT video, aswelltheproliferationofdevices,suchtablets,that Growing consumption of OTT TV services and on-demand streaming TVservicesand on-demandstreaming Growing consumptionofOTT Continued competitiveintensityinoursmalland Ongoing competitive repricing pressures in our business and wholesale Continued largebusinesscustomermigrationtoIP-basedsystems Ongoing serviceinnovation andproductvalue enhancements fibre footprint, changesinconsumerbehaviourand product innovation, fibre footprint, Realization ofcostsavingsrelatedtomanagementworkforce Further deployment of direct fibretomorehomesandbusinesses within Expansion ofourbusinesscustomerrelationshipstodrivehigher No materialfinancial,operationalorcompetitiveconsequencesof consume large quantities of bandwidth, will require ongoing capital consume largequantitiesofbandwidth,willrequireongoingcapital our wireline footprint and fixed of TVpackages expanding intoCanadawithon-demandservices providersofbusinessvoice global cloudandOTT datasolutions competitors continuetointensifytheirfocusonbusinesscustomers changes inregulationsaffectingourwirelinebusiness other improvementstothecustomerserviceexperience reductions including attrition and retirements, lower contracted rates reductions includingattritionandretirements,lowercontractedrates business marketsascableoperatorsandothertelecommunications markets revenue percustomer new callcentretechnologythatisenablingself-servecapabilities, and investment from oursuppliers, operatingefficienciesenabledbyagrowingdirect WTTP WTTP technology in rural communities BCE In c . 2020Annu medium-sized a l R e po r t

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MD&A Business segment analysis Bell Wireline MD&A Business segment analysis Bell Wireline • • This section discusses certain principal business risks specifically related to the Bell Wireline segment. This sectiondiscussescertainprincipalForadetaileddescriptionoftheother businessrisksspecificallyrelatedtotheBellWirelinesegment. PRINCIPAL RISKS BUSINESS Business risks. RISK POTENTIAL IMPACT AGGRESSIVE COMPETITION principal risksthatcouldhaveamaterialadverseeffectonourbusiness,includingthoserelatedtotheCOVID-19 pandemic, refertosection9, 78

The intensity of competitive activity The intensityofcompetitiveactivity An increase in the intensity level of An increaseintheintensitylevelof solutions) from national operators, solutions) fromnationaloperators, systems anddevices,innovative TV platforms, etc.) and business customers platforms, etc.)andbusinesscustomers Bell Wireline’s adjustedEBITDA (e.g., OTT VoIP,(e.g., OTT collaborationandSD competitive activity could result in lost competitive activitycouldresultinlost coupled with new product launches for coupled withnewproductlaunchesfor all of whichwouldputpressureon acquisition andretentionexpenses, revenue, higherchurnandincreased non-traditional playersandwholesalers retail customers(e.g.,IoT, smarthome

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BCE In c . 2020Annu a l R e po r t

WAN WAN • • • POTENTIAL IMPACT RISK REGULATORY ENVIRONMENT

The CRTC does not materially revise The CRTCdoesnotmateriallyrevise The CRTCmandatesratesforthenew August 2019 althoughthisreductionis sufficiently account for the investment accountfortheinvestment sufficiently wholesale high-speed access services, wholesale high-speedaccessservices, wholesale high-speedaccessservice financial performance of our wireline financial performanceofourwireline players,andnegativelyimpact the OTT penetration and disintermediation by penetration anddisintermediationby high-speed accessservice(available of our competitors, further accelerate of ourcompetitors,furtheraccelerate especially inrelationtoinvestment could changeourinvestmentstrategy, of ratesthataremateriallydifferent currently stayed by the CRTC pending stayed bytheCRTCpending currently of largecablecarriers),whichrates on disaggregated wholesalehigh-speed business areas, improvethebusinessposition next-generation wirelinenetworks advantageous forourcompetitors,orthe adoption ofanetworkconfiguration available facilities,themandating onFTTP applications business position ofourcompetitors network configurationofthisnewservice required inthesefacilitiesormodifiesthe rates weproposed, andwhichdonot access serviceavailablefacilities onFTTP In respect of the new disaggregated In respectofthenewdisaggregated in smaller communities and rural in smallercommunitiesandrural implementation oftheratesreducedby its finaldecisiononthereviewand vary in a way that materially improves the in awaythatmateriallyimprovesthe the CRTCinAugust 2019 foraggregated from theratesweproposed orthe the CRTC substantially reduced in the CRTCsubstantiallyreducedin the ratesforaggregatedwholesale that aremateriallydifferentfromthe FTTN FTTN facilities and the cable facilities facilities andthecable • • • • • • RISK POTENTIAL IMPACT BEHAVIOUR AND CHANGINGCUSTOMER TECHNOLOGICAL ADVANCEMENT

The proliferation of network technologies The proliferationofnetworktechnologies The ongoing loss of NAS lines from The ongoinglossofNASlinesfrom The proliferationofIP-basedproducts, TV subscriberscoulddeclineasaresult SD services or the reduction of TV spending, services orthereductionofTVspending, Our market penetration and number of Our marketpenetrationandnumberof Changing customerhabitsfurther With technological advancement, With technologicaladvancement, offerings directly to consumers, may toconsumers,may offerings directly of offeringsbyBDUsandanincreasing contribute totheerosionofNASlines cord-cutting andcord-shavingtrends global players,aswellincreasing of legal andillegalviewingoptions us todevelopotherserviceofferings providers,aswell unregulated OTT as well as the reduction in business IT as wellthereductioninbusinessIT accelerate thedisconnectionofTV a significant volume ofcontentpiracy number ofdomesticandglobal available inthemarketofferedby impacts businesscustomers’decision investments bycustomers software content andOTT including OTT is challenged byanincreasingnumber to migrateOTT, VoIPand/orleverage traditional voice revenuesandcompels technological substitutionchallengesour traditional, non-traditionaland the subscription forbundledchannels) the traditional TVviewingmodel(i.e., WAN architecture $3,217 5.3 FINANCIAL PERFORMANCE ANALYSIS Revenues Bell Media Revenue mix Bell Media REVENUES BELL MEDIARESULTS 2020 PERFORMANCEHIGHLIGHTS Operating performancewasimpacted materiallyin 2020byreducedadvertiserspending (product) (in $millions) and otherliveTV eventsprogramming. activity during across allplatforms–TV, radio, outofhomeanddigital Total BellMediarevenues Total externalrevenues

Inter-segment revenues 19

3% 35% 62% 35%

ell Media

Other Subscriber Advertising B $2,750 2019 3% 20 62% (14.5%) the COVID-19

40% 3% 57% 40%

Subscriber Other Advertising pandemic 2020 3% $850 Adjusted EBITDA Bell Media (in $millions)

19 57% $695 as wellastherelatedimpacts onmajorleaguesports 20 (18.2%) Revenue mix Bell Media (line ofbusiness) adio 9% 12% 79%

12% OOH R TV 2,369 2,750 9% 2019 381 2020 – , reflecting lower commercial , reflectinglowercommercial 79% 2,811 3,217 406 2019 adio 85% 5% 10%

BCE In

$ CHANGE TV OOH R 10% (442) (467) (25) c 2020 5% . 2020Annu 85% a l R % CHANGE (15.7%) (14.5%) e po (6.2%) r t

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MD&A Business segment analysis Bell Media MD&A Business segment analysis Bell Media • • • • • • • Technology has allowed new entrants to become media players in Technology hasallowednewentrants tobecomemediaplayersin This sectioncontainsforward-lookingstatements,includingrelating toourbusinessoutlook. Refertothesection These factors were partly offsetby: These factorswerepartly COMPETITIVE LANDSCAPE AND INDUSTRY AND TRENDS COMPETITIVE LANDSCAPE OPERATING COSTSANDADJUSTEDEBITDA BELL MEDIAOPERATING METRICS COMPETITIVE LANDSCAPE Competition in the Canadian media industry has changed in recent Competition intheCanadianmedia industryhaschangedinrecent years as content is increasingly being controlled by a small number years ascontentisincreasinglybeing controlledbyasmallnumber Bell Mediaoperatingcosts Bell Mediaoperatingrevenues Bell MediaadjustedEBITDA decreasedby18.2%in2020,compared have alsoemerged andarecompetingforbothcontent andviewers. operating costs. of global competitors with significant scale and financial resources. of globalcompetitorswithsignificant scaleandfinancialresources. acquisition and monetization of premium content. Global aggregators Global aggregators acquisition andmonetization ofpremiumcontent. across bothtraditionalandemerging platformstobetterenablethe looking statementsatthebeginningofthisMD&A. their own right. Some players have become more vertically integrated Someplayershavebecomemore verticallyintegrated their ownright. to lastyear, duetothedeclineinrevenues,moderatedbylower to lastyear, drivenbybothloweradvertisingandsubscriberrevenues. to 2019,drivenby: 80 Adjusted EBITDA margin Adjusted EBITDA Operating costs

• • Advertising revenuesdeclinedin2020,compared to2019,mainly CTV maintained its #1 ranking as the most-watched network in Canada Continued investmentincontentforourCraveservices COVID-19 pandemic, includinglowersports rightsandbroadcastcosts Reduced discretionary spending mainly on sales promotion, advertising Reduced discretionary spending mainly on sales promotion, advertising Lower labourcostsmainlyasaresultofthe CEWS Reduced programmingandproduction costs primarily drivenbythe (OOH, radio, andTV),withamorepronouncedimpact onOOHand driven by reduced spending by advertisers across all our platforms driven byreducedspendingadvertisersacrossallourplatforms due totheCOVID-19pandemic costs fromproductionshutdownsanddelays due todelayedand/orcancelledsporting eventsalongwithlower radio advertising, due to the economic uncertainty resulting from radio advertising,duetotheeconomicuncertaintyresultingfrom and employeetravelasaresultoftheCOVID-19 pandemic Increased costsrelatedtotheVandNoovo.ca acquisition impact onourmediaemployeesfromtheloweradvertisingrevenues the top20 programs nationallyamongtotal viewers for the19th year ina row amongtotalviewers in primetime,with11 of following impacts onouradvertisingplatforms: Theyear-over-yeardeclinereflectedthe the COVID-19 pandemic.

Decreased radio advertising revenues driven by lower demand due Decreased radioadvertisingrevenuesdrivenbylowerdemanddue Lower OOHadvertisingrevenuesduetonon-essentialservices campuses, that continued through much of 2020, as well as reduced campuses, thatcontinuedthroughmuchof2020,aswellreduced restrictions imposed onrestaurants,bars,arenas,andschool airport traffic,asaresultoftheCOVID-19 pandemic to reduced audience levels from lower at-work and in-car listening to reducedaudiencelevelsfromlowerat-workandin-carlistening |

BCE In c . 2020Annu a l R e po r t decreasedby13.2%in2020,compared decreasedby14.5%in2020,compared , which mitigated the , whichmitigatedthe • • • • • • • Bell Mediacompetesinthevideo, radio, OOH advertisinganddigital media markets:

TV market, withitsEnglishspecialtyandpay TVpropertiesreaching TV market, • 8 Video: Astral is one of Canada’s leading OOH advertising providers, Subscriber revenues streaming service. with 24.3 million uniquevisitorspermonth,reaching76%ofthedigital primarily indiscrete localmarketareasamongindividual stations product lines(comprisedofoutdooradvertising,streetfurniture, For the 2019–2020 broadcast year,For the2019–2020 broadcast BellMediaremainedCanada’s Bell Mediacontinuedtorankfirstinuniquevisitors,total page views Bell Mediamaintaineditsleadershipposition inthe specialtyandpay French specialtyandpay TVviewers Radio: key urbancitiesacrossthecountry over 65.1 million hourstunedeachweek driven by the timing of certain owning more than 50,000 advertising faces, strategically located in online propertiesinthecountrytermsofuniquevisitorsandreach, by continued growth in reaching 18 million consumersweekly,withanofferingofsixinnovative and totalpage minutesindigitalmediaamongCanadianbroadcast available toconsumers transitandlifestyle digitallargeformat, airport, audience. and videonetworkcompetitors.BellMediaalsorankedfourthamong increase the diversity of information and entertainment outlets increase thediversityofinformation andentertainmentoutlets its French specialtyandpay TVpropertiesreaching this trend is expected to continue as new services and technologies this trendisexpectedtocontinue as newservicesandtechnologies top radiobroadcaster, reachingover14.4 million listenerswhospen

2 platforms. ThedeclinewasmoderatedbytheacquisitioninMay 2020 postponement ofsporting events,allduetotheCOVID-19 pandemic, Bowl LIVinFebruary 2020. Lower TVadvertisingrevenuesfromadvertisercancellationsand delayed spendingalong with the impact from the cancellationand of theFrench-language networkV, whichwasrebrandedNoovo, and combined withtheongoingshiftin and thetemporary shutdownofsmalllocalbusinessesattributableto the return of simultaneous substitution for the broadcast of Super the return of simultaneous substitution for the broadcastof Super the COVID-19 pandemic, alongwithcontinuedoverallindustrydecline % ofallCanadianEnglishspecialtyandpay TVviewersandwith Competition within the radio broadcasting industry occurs Competitionwithin theradiobroadcastingindustry occurs TheTVmarkethasbecomeincreasingly fragmentedand (2,055) 25.3% 695 2020 declinedin2020,compared tolastyear, primarily DTC (2,367) 26.4% 850 2019 subscribers from Crave, our pay TV and BDU contract renewals, partly offset offset contract renewals, partly in anaverageweek viewership Caution regardingforward- $ CHANGE (155) 312 to OTT and digital anddigital to OTT advertising 76% of Québec 76% ofQuébec % CHANGE (18.2%) typically typically 13.2% (1.1) pts ) and ) and t • • • • • • • • • • • • • • • Competitors The mediaindustryin 2020 wasparticularly hit OOH ADVERTISING RADIO TV on non-essentialbusinesses. consumption patterns werelessaffectedbythe events andthestartoffallTVseason.However, unlikeTV, where demand for TV resulting incampaign cancellationsordeferrals.Astheyearprogressed, measures, globaltravelrestrictionsandserviceimposed radio andOOHhavebeenslowertoreboundduestay to themarket-widecontractionofdemandfromCOVID-19 restrictions, the

Apple TV+,CBSAllAccessandDAZN Satellite radioproviderSiriusXM Video-sharing websitessuchasYouTube U.S. conventionalTVstationsandspecialtychannels OOH: Other mediasuchasTV, radio, printmediaand theInternet Outfront Media,Québecor, DynamicandClearChannelOutdoor Other mediasuchasnewspapers, localweeklies,TV, magazines, Group Inc. streamingproviders suchasNetflix,AmazonPrimeVideo,OTT Disney+, Conventional CanadianTVstations(localanddistantsignals) Large outdooradvertisers, suchasJimPattison BroadcastGroup, Music downloadingservicessuchasApple’s iTunes Store Music streamingservicessuchasSpotify andApple Music Radio stationsinspecificlocalmarkets Large radiooperators,suchasRogers, Corus,CogecoandStingray Broadcasting Corporation (CBC)/SociétéRadio-Canada Inc.(Corus), Rogers, Québecor Entertainment Numerous smallerandlocalcompanies operatingalimitednumber Digital media: has increasedasmoredigitalandonlinemediacompanies, including content, requiring industry players to increase their efforts in digital requiringindustryplayerstoincreasetheireffortsindigital content, of displayfacesinafewlocalmarkets outdoor advertisingandtheInternet content andcapabilities inordertocompete.Thistrend isalsocausing companies operatinginafewlocalmarkets of a few large companies as well as numerous smaller and local rather than traditional media. In addition, the number of competitors rather thantraditional media.Inaddition,thenumberofcompetitors advertisers to direct more of their spending to digital and online advertisers todirectmoreoftheirspending digital andonline and specialtypay channels,suchasthoseownedbyCorus large globalcompanies, enterthemarket. local markets towards digital and online media, mobile devices and on-demand towards digitalandonlinemedia,mobiledeviceson-demand COVID-19 The Canadian OOH advertising industry is fragmented, consisting TheCanadianOOHadvertisingindustryisfragmented,consisting that also own andoperate radio stationclusters in various pandemic. Advertising revenues declined significantly due due pandemic. Advertisingrevenuesdeclinedsignificantly Consumers continue to shift their media consumption Consumerscontinuetoshifttheirmediaconsumption advertising improved with the return of live sporting hard by the effects of hard bytheeffectsof COVID-19 and Canadian pandemic, - at- home home

Technology usedinthemediaindustrycontinuestoevolve rapidly, TSN andRDS,aswellCTV, Noovo andDiscovery Video seek more control over when, where and how they consume content. seek morecontroloverwhen,whereandhowtheyconsumecontent. streaming onavariety ofplatforms services on the screen of their choice, including TVs, computers, and services onthescreenoftheirchoice,includingTVs,computers,and GROWTH OFALTERNATIVES TOTRADITIONALLINEARTV THE WAY TVISDELIVERED TECHNOLOGY ANDCONSUMERHABITSTRANSFORMING MEDIA COMPANIES AREEVOLVINGTOREMAINCOMPETITIVE ESCALATING CONTENTCOSTS INDUSTRY TRENDS which has led to alternative methods for the distribution, storage and which hasledtoalternativemethodsforthedistribution,storageand with content owners has also become increasingly important to media Consumers continue to have access to an array of online entertainment Consumers continuetohaveaccessanarrayofonlineentertainment Consumers nowhavetheabilitytowatchcontentfromavariety ofmedia premium content has become even more important for acquiring and While the majority of households use pure OTT services, like Crave, services,likeCrave, While themajorityofhouseholdsusepureOTT DTC productssuchasBellMedia’s bilingualCraveservice,Super Premium videocontenthasbecomeincreasinglyimportant tomedia Netflix, AmazonPrimeVideo have resulted in a number of challenges for content aggregators and have resultedinanumberofchallengesforcontentaggregatorsand companies inattractingandretainingviewersadvertisers.This objective of better competing with non-traditional offerings through objective ofbettercompetingwithnon-traditionalofferingsthrough owners to provide content directly to distributors and consumers, thus todistributors andconsumers,thus owners toprovidecontentdirectly distributors. Ubiquitousaccesstocontentenabledbyconnecteddevices driven andreinforcedchangesinconsumerbehaviourasconsumers Thesetechnologicaldevelopmentshave consumption ofcontent. companies. which is costs andmayalsomakeitmoredifficulttosecurecontent, including live sports and special events, shouldcontent, continue to draw catching up on an expanded library of past programming on-demand. online, watchinglessscheduledprogramminglive,time-shiftingoriginal of videoconsumption,peopleareincreasinglyconsumingcontenton options hasledtoafragmentationinconsumptionhabits.Although entertainment programming,theincreaseinalternative mobile devices. The number of Canadian users who are connected to mobile devices.ThenumberofCanadianuserswhoareconnectedto bypassing traditionalcontentaggregators. revenue. Therefore, ownership of content and/or long-term agreements revenue. Therefore,ownershipofcontent and/orlong-termagreements retaining audiencesthatinturn attract advertisersandsubscriber broadcasts through PVRs, viewing more video on mobile devices, and more timeisstillspentontraditionallinearTVcompared tootherforms and information alternatives that did not previously exist. While and informationalternativesthatdidnotpreviouslyexist. and moreaffordable.Changesintechnologyconsumerbehaviour are evolving their content and launching theirown solutions with the audiences andadvertisersmovingforward.Heightenedcompetitionfor as alternativestoatraditionallinearpackage. a trendthatisexpectedtocontinueintothefuture. In recognition of changing consumer behaviour, media companies linear TV consumption, an increasing number are using these services introduces risk to traditional distribution platforms by enabling content introduces risktotraditionaldistributionplatformsbyenablingcontent the Internet through their TVs is growing as connection becomes easier the InternetthroughtheirTVsisgrowingasconnectionbecomeseasier these rightsfromglobalcompetitors,includingNetflix,Amazon traditional linearTVhashistoricallybeentheonlywaytoaccess formats. Inparticular, today’s viewersareconsumingmorecontent their owntermsfromanassortmentofservicesandinavariety of , Disney+andDAZN, hasalreadyresultedinhigherprogramrights , Disney+andApple TV+ . Accesstolivesports andother BCE In c . 2020Annu , all of which offer , allofwhichoffer , to complement , tocomplement a l R e po Prime Prime

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MD&A Business segment analysis Bell Media MD&A Business segment analysis Bell Media Through Crave, our bilingual TV and streaming service, we will continue Through Crave,ourbilingualTVand streamingservice,wewillcontinue This sectioncontainsforward-lookingstatements,includingrelatingtoourprojectedfinancialperformancefor2021 Across our media properties, particularly in video, we intend to leverage Subscriber revenue performance is projected to reflect the benefits Subscriber revenueperformanceisprojectedtoreflectthebenefits SHOWTIME andSTARZ) inordertoattractpay TVandDTCsubscribers. BUSINESS OUTLOOK AND ASSUMPTIONS OUTLOOK AND BUSINESS successfully acquiring highly rated programming and differentiated successfully acquiringhighlyratedprogramminganddifferentiated specialty servicestodriverevenue growth. screens andplatforms. viewing experiences to our TV andDTC audiences. Our sports offerings, 2021 OUTLOOK with theadditionofnewfeaturesandfunctionalitiessuchasbest-in- production. Weintendtocapitalize onourcompetitiveposition inkey premium opportunities toreachtheirtargetaudiences.Successin properties, while continuing to invest in premium content across all properties, while continuing to invest in premium content across all While theadvertisingmarketcontinuestobeadverselyimpacted by We also intend to continue controlling costs by achieving productivity We alsointendtocontinuecontrollingcostsbyachievingproductivity We intend to continue expanding platformavailability and delivering With thereturnofkeylivesports broadcasts,includingfromthe National Hockey League ( Management (SAM) tool Bell Media’s financialperformanceisprojectedtoreflectagradual high-quality Canadian content, includingmarket-leadingnews; high-quality Canadiancontent, cancelled or delayed advertising campaigns from manysectorsdue gains and pursuing operational efficiencies across all of our media gains andpursuingoperationalefficienciesacrossallofourmedia expected to be driven by investment in quality programming and continue tofocusoncreatinginnovative high-quality productionsin Wewill also of ourstrategytoenhanceviewershipandengagement. combined withtheintegrationofourdigitalplatforms,areintegralparts of available inventory. class proprietarydata,animproveduserexperienceandalargerpool content acrossallscreensandplatforms;producingcommissioning cord-shaving and cord-cutting, will continue to continue tonegative demand, aswellstrategicpricingonadvertisingsalesandsubscriber economic recovery in 2021, whichshouldresult in stronger advertiser outlook, objectives, plans and strategic priorities. Refer to the section content; building andmaintainingstrategicsupply arrangementsfor understand andconnectwiththerightaudiencesonchannels, user experienceimprovements. revenue growth.However, are expected to continue to deliver premium content and exceptional are expectedtocontinuedeliverpremiumcontentandexceptional and furtherleveragingBell Media’s smartdata Strategic Audience anticipate agradualrecoveryduringtheyear. In non-sports specialtyTV, audiencesandadvertisingrevenuesare including Crave.However, theeffectsofshiftingmediaconsumption to leverage our investments in premium content (including HBO, HBO Max, to leverageour investments inpremiumcontent(includingHBO, HBOMax, this area requiresthatwefocuson a number offactors,including: targeting tocontinueofferingadvertisers,bothnationallyandlocally, the strengthofourmarketposition combinedwithenhancedaudience to theeconomicdownturn traditional subscribervolumes. the areasofsports newsandeditorialcoverage. anddigitalplatforms,aswellfurtherTV towards competingOTT from BDU carriage renewals, and continued scaling of DTC products, 82

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BCE In c . 2020Annu a ly affectoverallresults. l R e , which helps marketers and planners identify, po NHL r t causedbythe the ) , NBAandCFL, our sports video offerings COVID-19 pandemic COVID-19 negatively is expectedto is pandemic , we impact Caution regarding forward-looking statements

• • • • • • • • • supported inparticular bytheinvestmentinNoovo Newsandmore ASSUMPTIONS with ourlocalTVproperties,wewillcontinuetopursueopportunities that French languageoriginals. digital andaddingnewboards. opportunities toreachtheirtargetaudiences.Additionally,inconjunction continue offeringadvertisers,bothnationallyandlocally,premium our programmingwithaviewtoincreasingappeal toaudiences, markets, including converting certain premium outdoor structures to markets, includingconvertingcertainpremiumoutdoorstructuresto markets. Wewillalsocontinuetoseeknewopportunities indigital In our OOH operations, we plan to leverage the strength of our products In ourOOHoperations,weplantoleveragethestrengthofproducts In our French-language TV services, we will continue to optimize In radio, we intend to leverage the strength of our market position to leverage ourpromotionalcapabilities, provideanexpanded platform for contentsharing,andofferothersynergisticefficiencies. to provideadvertiserswithpremiumopportunities inkeyCanadian

Ability to successfully acquire and produce highly rated programming Ability tosuccessfullyacquireandproducehighlyratedprogramming Continued monetization of content rights and Bell Media properties Continued monetizationofcontentrightsandBellMediaproperties Continued scalingofCravethroughbroadercontentofferingand Continued escalationofmediacontentcoststosecurequality Overall revenueisexpectedtoreflectagradualeconomicrecovery programming; however, intheshortterm,savingscanstillbeexpected programming, aswellthereturnofsports andentertainment pandemic No material financial, operational or competitive consequences of No materialfinancial,operationalorcompetitiveconsequences of Building andmaintainingstrategicsupply arrangementsforcontent Enhanced market-leadingattributionthroughourSAMtool changes inregulationsaffectingourmediabusiness inthelanguageoftheirchoice,onpreferredplatforms content, cancellations fromtheongoingCOVID-19 pandemic due toproductiondelays,shortenedsports seasons,andpossible continue tobenegativelyimpacted bytheeffectsof on advertisingsales.However, revenueperformanceisexpectedto user experienceimprovements across allscreensandplatforms and differentiatedcontent across allplatforms Investment inNoovo newsandmoreFrench-language original in 2021 combinedwithsubscriberrevenuegrowthandstrategicpricing to better serve our French-language customers with a wider array of on manysectorsoftheeconomy. at the beginning of this MD&A. business andour2021business the COVID-19 the COVID-19 content

• • • • • This section discusses certain principal business risks specifically related to the Bell Media segment. This sectiondiscussescertainprincipalForadetaileddescriptionoftheother businessrisksspecificallyrelatedtotheBellMediasegment. PRINCIPAL RISKS BUSINESS DRIVERS GROWTH KEY Business risks. POTENTIAL IMPACT RISK CONSTRAINTS PIRACY ANDREGULATORY AGGRESSIVE COMPETITION, principal risksthatcouldhaveamaterialadverseeffectonourbusiness,includingthoserelatedtotheCOVID-19 pandemic, refertosection9,

The intensity of competitive activity The intensityofcompetitiveactivity Adverse impact onthelevelof Strategic pricingonadvertisingsales VOD, personalvideoplatforms, sports programmingandevents strategies from non-traditional global strategies fromnon-traditionalglobal subscriptions and/or viewership for Bell subscriptions and/orviewershipforBell with animprovedbuyingexperienceforadvertisers Gradual economic recovery in 2021, including the return of key live Gradual economicrecoveryin2021,includingthereturnofkeylive players and regulations that require all players andregulationsthatrequireall BDUs tomakeTVservicesavailable àla Further integratetheuseofourdataacrossmediapropertiesto Media’s TVservicesandonBellMedia’s carte combination with the development of combination withthedevelopmentof in distribution andpiratedcontent, distribution platformssuchas unregulated OTT content offerings, contentofferings, unregulated OTT better inform media planning, activation, and measurement, combined better inform combined media planning, activation, and measurement, more aggressive product and sales more aggressiveproductandsales addition totraditionalTVservices,in revenue streams from new technologies and alternative from newtechnologiesandalternative DTC DTC • • • • • • POTENTIAL IMPACT RISK REVENUE UNCERTAINTY ADVERTISING ANDSUBSCRIPTION

The COVID-19 pandemic couldcontinue The advertisingmarketcouldbe Advertising is heavily dependent on Advertising isheavilydependenton sectors due to the economic downturn sectors duetotheeconomicdownturn spend againstdominantnon-traditional/ well as on our ability to grow alternative well asonourabilitytogrowalternative OOH platforms, in the context of a OOH platforms,inthecontextofa Economic uncertainty could reduce Economic uncertaintycouldreduce BDUs, underwhichmonthlysubscription Bell Mediahascontractswithavariety of could result in the loss of subscription could resultinthelossofsubscription changing and fragmented advertising changing andfragmentedadvertising economic conditionsandviewership, as capture our share of the changing and capture ourshareofthechangingand during theCOVID-19 pandemic global digitalservices. revenue market. Conventional media is under Conventionalmediaisunder market. advertising mediasuchasdigitaland advertisers’ spending. Our failure to advertisers’ spending.Ourfailureto are earned,thatexpireonaspecificdate result inthelossofadvertisingrevenue. revenue acrossallBellMediaplatforms advertising campaigns frommany If we are not successful in obtaining If wearenotsuccessfulinobtaining increasing pressure for advertising increasing pressureforadvertising increase or maintain viewership or increase ormaintainviewership favourable agreementswithBDUs,it fees forspecialtyandpay TVservices fragmented advertising market could fragmented advertisingmarketcould to drive a material decline in advertising to driveamaterialdeclineinadvertising further impacted bycancelled/delayed • • • •

Grow marketshareandgeneraterevenuefrominvestmentsinNoovo Optimizing uniquepartnerships andstrategiccontentinvestments Ongoing growthinBDUrates News andFrench-language originalproductions Enhancing digitalstrategy,includingscalingofDTCproducts • • • • RISK POTENTIAL IMPACT ABILITY TOSECUREKEYCONTENT RISING CONTENTCOSTSAND

subscriber growth. subscriber growth. subscription revenues viewership and subscription levels viewership andsubscriptionlevels COVID-19 pandemic couldfurther Our inability to acquire or develop Our inabilitytoacquireordevelop pressure our ability to secure key content pressure ourabilitytosecurekeycontent popular programmingcontent Rising content costs, as an increasing Rising contentcosts,asanincreasing Rising programming costs could require Rising programmingcostscouldrequire Production delaysattributabletothe content to drive revenues and content todriverevenuesand content ortorestrictwithin competitors seektoacquirethesame could result in negative pressure on could resultinnegativepressureon could adverselyaffectBellMedia’s us to incur unplanned expenses, which us toincurunplannedexpenses,which number of domestic and global number ofdomesticandglobal adjusted EBITDA and, consequently, advertising and advertisingand and, consequently, in theshortterm. to acquire or develop key differentiated to acquireordevelopkeydifferentiated their ownecosystems,andtheability BCE In c . 2020Annu a l R e po r t

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MD&A Business segment analysis Bell Media MD&A Financial and capital management 6 • • • • provides an This sectiontellsyouhowwemanageourcashandcapitalresourcestocarryoutstrategydeliverfinancialresults.Itprovidesan The increase of $27 million in total debt, comprised of debt due within comprisedofdebtduewithin The increaseof$27 million intotaldebt, 6.2 6.1 Additionally, duringthefirsthalfof2020,BellCanadadrew$1,450 million (1) Partly offsetby: credit facilities. In Q2 2020, BellCanadarepaid alloftheU.S.dollar credit facilities.InQ2 2020, one year and long-term debt, wasdueto: one yearandlong-termdebt, borrowings undersuchfacilities. analysis ofourfinancialcondition,cashflowsandliquidityonaconsolidatedbasis. in U.S. dollars ($2,035 million in Canadian dollars) under its committed 84 Shares issuedunderemployeestockoptionplan COMMON SHARESOUTSTANDING Cash andcashequivalents Outstanding, December31,2020 Preferred shares Outstanding, January1,2020 Debt duewithinoneyear Net debt Long-term debt

M-52 and Series M-53 MTN debentures, with total principal amounts debt debentures withtotalprincipal amountsof$850 million, $750 million dollars, respectively inCanadian and$750 million $1 billion $1 billion, of $1,250 million, a netdecreaseof$232 million dueto lowerleaseliabilitiesandother a decreaseinournotespayable (netofissuances)$1,641 million and $500 million inCanadiandollars,respectively the earlyredemptionofSeriesM-42,M-30 and SeriesM-24 MTN the issuancebyBellCanadaofSeriesM-51,M-47,

50% ofoutstandingpreferredshares$4,003 | inancial capital management and

BCE In debt utstanding share data F O Net c . 2020Annu (1) a l R e po r t million and$4,004 million in 2020 and2019,respectively,areclassifiedasdebtconsistentwiththetreatmentbysomecreditratingagencies. 904,415,010 903,908,182 OF SHARES 506,828 NUMBER

• • • • • • • • The increase in cash and cash equivalents of $79 million was mainly wasmainly The increaseincashandequivalents of$79 million At March 4, 2021, At March 4, (1) Partly offsetby: options wereoutstanding. due to: STOCK OPTIONSOUTSTANDING Granted Exercisable, December31,2020 Outstanding, December31,2020 Forfeited orexpired Exercised Outstanding, January1,2020

$3,348 million offreecashflow $79 million forotherinvestingactivities $86 million fortheacquisitionofspectrumlicences $93 million forotherfinancingwhichincludesthe payments forearly forthepurchaseonopenmarketofBCEcommon $263 million $638 million ofdebtrepayments (netofissuances) $2,975 million ofdividendspaid onBCEcommonshares ofcashfromdiscontinuedoperations(includedin $892 million shares for the settlement ofshare-basedpayments shares forthesettlement debt redemptioncosts (netofdebtandotheritems)fromthecompletion of $933 million cash flowsfrominvestingactivities)whichincludesnetproceeds the saleofsubstantiallyallourdatacentreoperationsinQ4 2020

The weightedaveragemarketsharepriceforoptionsexercisedin 2020was$63. 28,101 23,906 (1) 2,002 2,417 (224) 2020 904,559,124 28,153 22,415 2,002 3,881 (145) 2019 common sharesand 15,650,234 12,825,541 3,420,407 5,186,600 OF OPTIONS (506,828) $ CHANGE (88,886) NUMBER (1,464) 1,491 (52) (79) – WEIGHTED AVERAGE 15,506,120 EXERCISE PRICE($) % CHANGE (37.7%) (54.5%) (0.2%) 6.7% stock stock 65 61 52 58 59 57 – 6.3 1.7 pts compared tothe16.7%achievedin2019.Capitalspending CAPITAL EXPENDITURES CASH FLOWSCASH FROM FLOW OPERATING FREE AND CASH ACTIVITIES $204 million, compared to2019,mainlydueloweradjustedEBITDA year reflectedthe following: BCE capitalexpenditures n.m.: notmeaningful or $228 million overlastyear, drivenbyhigherspendinginBell Wireless other costspaid. offset byhighercashfromworkingcapitalandlowerseverance resulted inacorresponding capitalintensityratioof18.4% in2020,up and BellMedia,moderatedbyreduced spendinginBellWireline.This and higherincometaxespaid duetotimingof installments,partly In 2020,BCE’s cashflowsfromoperatingactivitiesdecreasedby Acquisition andothercostspaid Acquisition ofspectrumlicences Acquisition andothercostspaid Cash used in discontinued operations (included in cash flows Cash usedindiscontinuedoperations(includedcashflows Cash from(usedin)discontinuedoperations(includedincashflows Cash dividendspaid oncommonshares Cash from discontinued operations (included in cash flows Cash fromdiscontinuedoperations(includedincashflows Cash from discontinued operations (included in cash flows Cash fromdiscontinuedoperations(includedincashflows Cash dividendspaid bysubsidiariestonon-controllinginterest Cash dividendspaid onpreferredshares Capital expenditures Cash flowsfromoperatingactivities Other financingactivities Other investingactivities Business acquisitions Purchase of shares for settlement ofshare-basedpayments Purchase ofsharesforsettlement Free cashflow BCE Bell Wireless Bell Media Bell Wireline Net increase(decrease)incashandequivalents Issue ofcommonshares Net repayment ofdebtinstruments Capital intensityratio Capital intensityratio Capital intensityratio Capital intensityratio from financingactivities) from investingactivities) from operating activities) from operating activities) ash flows ash C totaled$4,202 million in2020,increasing5.7%

• Free cashflowdecreasedby$390 million in2020,compared to2019, operating activities, excluding cash from discontinued operations and operating activities,excludingcashfromdiscontinuedoperationsand acquisition andothercostspaid. mainly due to higher capital expenditures and lower cash flows from mainly duetohighercapitalexpendituresandlowercashflowsfrom

June 2020 and the continued rollout of our June 2020 LTE-A network, which at Higher capital spending in our wireless segment of $245 million Higher capitalspendinginourwireless segmentof$245 million respectively. The COVID-19 network investments with the launch of our mobile 5G network in network investmentswiththelaunch ofourmobile5Gnetworkin IT enhancements relatingtoonlinefulfillmentandcapacity expansion in 2020,compared tolastyear, primarilydrivenbyourcontinued to support increaseddemand. the end of 2020 reached2 the endof 2020 (2,975) (4,202) 3,348 4,202 7,754 3,161 (638) (263) (132) 18.4% 25.9% 10.5% 892 916 125 2020 2020 (93) (79) (35) (86) (65) (54) (53) 4.5% 79 26 54 35 (7) (1,209) (2,819) (3,974) 3,738 3,974 7,958 3,195 (280) (142) (147) 16.7% 25.9% 240 671 108 6 pandemic drove increasedinvestmentin 2019 2019 (18) (54) (60) (51) (94) (65) 3.4% 7.5% 94 60 % and96%oftheCanadianpopulation, (6) 7 – BCE In $ CHANGE $ CHANGE (156) (121) (214) (390) (228) (228) (204) (245) 359 910 571 (86) (39) (86) (14) (40) (25) (17) c 25 40 12 15 34 . 2020Annu (1) a l R % CHANGE % CHANGE e (16.7%) (72.2%) (27.5%) (85.2%) (42.6%) (89.2%) (10.4%) (41.7%) (15.7%) (36.5%) 41.7% 47.2% 42.6% 18.5% 10.2% po (1.7) pts (1.1) pts (3.0) pts (5.5%) (5.7%) (5.7%) (2.6%) 1.1% n.m. n.m. n.m. n.m. r – t

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MD&A Financial and capital management MD&A Financial and capital management • The issuanceofcommonsharesin 2020 decreasedby$214 million, compared to2019,mainlyduealowernumberofexercisedstockoptions. 6.4 Series M-51,M-47,M-52 and SeriesM-53 MTN debentures, We use a combination of short-term and long-term debt to finance our operations. Our short-term debt consists mostly ofnotes payable We useacombinationofshort-termandlong-termdebttofinanceouroperations.Ourconsistsmostly DEBT INSTRUMENTS ACTIVITIES) FROM DISCONTINUED OPERATIONSCASH (INCLUDED IN CASH FLOWS FROM INVESTING CASH DIVIDENDS PAIDCASH COMMON ON SHARES COMMON OF SHARES ISSUANCE $750 million inCanadiandollars,respectively.Additionally,during $750 million such facilities. 2020 with total principal amounts of $1,250 million, $1 billion, $1 billion and and $1 billion $1 billion, with totalprincipal amountsof$1,250 million, We repaid $638 million of debt, net of issuances. This included the netofissuances.Thisincludedthe ofdebt, We repaid $638 million For the year ended December 31, 2020, we recorded an increase in 2020,werecordedanincreasein For theyearendedDecember 31, under commercialpaper programs,loanssecuritizedbytradereceivables andbankfacilities.Weusuallypay fixedratesofinterestonour ($2,035 million inCanadiandollars)underitscommittedcreditfacilities. (net ofdebtandotheritems)receivedinQ4 2020 from thecompletionofsalesubstantiallyallourdatacentreoperations. our post-employment benefitplansandagain,beforetaxes,inOCI debentures withtotalprincipal amountsof$850 million, $750 million SeriesM-24 MTN early redemptionofSeriesM-42,M-30 and of leasesandotherdebt$897 million, offsetbytheissuanceof partly at December 31, 2019. actual discountrateof2.6%atDecember 31, 2020,compared to3.1% and $500 million in Canadiandollars,respectively ofnotespayable, the repayment (netofissuances)$1,641 million In Q2 2020, BellCanadarepaid all oftheU.S.dollarborrowingsunder In 2020,cashfromdiscontinuedoperations(includedinflowsinvestingactivities)increasedby$910 million mainlydueto$933 million In 2020, cash dividends paid on common shares of $2,975 million increased by $156 million, compared to2019,due to a higher dividend paid in 2020 of$3.2900 per commonsharecompared to$3.1325 per commonsharein2019. long-term debt and floating rates on our short-term debt. AsatDecember 31, 2020,allofourdebtwasdenominatedinCanadiandollarswith long-term debtandfloatingratesonourshort-termdebt. the first half of 2020, Bell Canada drew $1,450 million in U.S. dollars inU.S.dollars the firsthalfof2020,BellCanadadrew$1,450 million than-expected return on plan assets in 2020, partly offset by a lower offsetby a lower than-expected returnonplanassets in2020,partly This was due toa higher- from continuing operations of $687 million. the exceptionofourcommercialpaper, andSeriesUS-1 and SeriesUS-2 Notes, whicharedenominatedinU.S.dollarsandhavebeenhedged for foreigncurrencyfluctuationsthroughforwardcontractsandcrossinterestrateswaps. 86

2020, compared to2019,mainlydrivenbyfewernewcustomerservice COVID-19 pandemic. Wecontinuedtoinvestintheexpansion ofour WTTP networktorurallocations.Additionally,weinvestedincapacity WTTP FTTP network to more homes and businesses and the rollout of our fixed networktomorehomesandbusinessestherolloutofourfixed FTTP in Reduced capitalspendinginourwirelinesegmentof$34 million expansion drivenbyincreaseddemandduetotheCOVID-19 pandemic, installations and delayed network construction attributable to the installations anddelayednetworkconstructionattributabletothe

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BCE In ost-employment benefit plans P c . 2020Annu a l R e po r t , and net payments • $1,073 million ofnotespayable, andnetpayments ofleaseliabilities $1,073 million 2019 We repaid $1,209 million of debt, net of issuances. This included of debt, We repaid $1,209 million M-37 debentures intheprincipal amountsof$1 billion and$400 million For the year ended December 31, 2019, we recorded an increase in 2019, we recorded an increase in For the year ended December 31, of $600 million in U.S. dollars ($808 million in Canadian dollars), and inCanadiandollars),and inU.S.dollars($808 million of $600 million withatotalprincipaldollars, respectively,SeriesUS-2 Notes amount our post-employment benefitplansandagain,beforetaxes,inOCI by theissuancesofSeriesM-49 and SeriesM-50 MTN debentureswith an increaseinsecuritizedtradereceivables of$131 million. at December 31, 2018. 2019,compared to3.8% actual discount rateof 3.1% atDecember 31, and other debt of $825 million. Theserepayments offset and otherdebtof$825 million. werepartly in Canadiandollars,respectively,therepayments (netofissuances) total principal amountsof$600 million and$550 million inCanadian debenturesandSeries the earlyredemptionofSeriesM-27 MTN than-expected return on plan assets in 2019, partly offset by a lower offsetbyalower than-expected returnonplanassets in2019,partly Thiswasduetoahigher- from continuingoperationsof$191 million.

with enhancementstonetwork, digitalandvideoplatforms Higher capitalinvestmentsinourmediasegmentof$17 million in2020, compared tolastyear, mainlyduetotheintegrationofNoovo along by theCOVID-19 automation toolsaswellimprovedapp functionality,alsodriven customerself-serveand along withinvestmentsinonlinefulfillment, pandemic. The following table outlines ourfinancialrisks,howwemanagetheserisksandtheirstatementclassification. The followingtableoutlines 6.5 Post-employment benefitplans price risk and longevity risk. These risks are further described in Note 2, Management’s objectivesaretoprotectBCEanditssubsidiariesonaconsolidatedbasisagainstmaterialeconomicexposures andvariability of resultsfromvarious financialrisksincludingcreditrisk, liquidityrisk, foreign currencyrisk, interestraterisk, commoditypricerisk, equity RISK FINANCIAL Credit risk Foreign currency risk Interest rate risk Liquidity risk inancial risk management risk inancial F

A 1% increase (decrease) in interest rates would A 1%increase(decrease)ininterestrateswould A 10%depreciation(appreciation) inthevalue A 10%depreciation(appreciation) inthevalue OF RISK DESCRIPTION Refer tothefollowing Refer tothefollowing peso would result in a gain (loss) of $4 million peso wouldresultinagain(loss)of$4 million operations atDecember 31,2020. ($26 million) innetearningsfromcontinuing on our derivative financialinstruments. on dividendrateresetsourpreferredshares. ourpost-employment benefit plansand our debt, device financing of financial position. Weareexposed tocreditrisk continuing operations at December 31, 2020 continuing operationsatDecember 31, 2020 ($19 million) recognizedinnetearningsfrom dollar wouldresultinagain(loss)of$7 million of theCanadiandollarrelativetoU.S. currency debt. of theCanadiandollarrelativetoPhilippine instruments areunabletomeettheirobligations. if counterparties toourtradereceivables, wireless on our derivative financialinstruments. We areexposed toliquidityriskforfinancial We areexposed toriskontheinterestratesof activities and certain financing activities, the activities andcertainfinancingactivities,the We areexposed tocreditriskfromoperating at December 31, 2020,withallothervariables and again(loss)of$245 million($215 million) We areexposed toforeigncurrencyriskrelated held constant. at December 31, 2020,withallothervariables held constant. result in an increase (decrease) of $20 million result inanincrease(decrease)of$20 million maximum exposure ofwhichisrepresentedby recognized in OCI from continuing operations recognized inOCIfromcontinuingoperations recognized in OCI from continuing operations recognized inOCIfromcontinuingoperations liabilities. the carryingamountsreported inthestatements to anticipated transactionsandcertainforeign andNote 28, plan receivables, andderivative

Fair value Fair value Financial andcapitalmanagement section for details sectionfordetails section for details sectionfordetails FINANCIAL STATEMENT CLASSIFICATION MANAGEMENT OFRISKAND • • • • • • • • • • • • • •

Significant accounting policies The allowance for doubtful accounts reflects an increase of $87 million for the The allowancefordoubtfulaccountsreflectsanincreaseof$87 millionthe There werenointerestratelocksoutstanding asofDecember 31,2020 19 pandemic. At December 31, 2020, we had outstanding cross currency interest rate swaps At December 31,2020,wehadoutstandingcrosscurrencyinterestrateswaps Sufficient cashfromoperatingactivities, possible capital marketsfinancing $16 million, respectively Our non-currentwireless December 31, 2020 were$1,002 millionand$59 million,respectively Our contractassetsandallowancefordoubtfulaccountsbalancesat December 31, 2020, Our tradereceivables andallowancefordoubtfulaccountsbalancesat Regularly monitorourcreditriskandexposure Deal withinstitutionsinvestment-gradecreditratings For ourpost-employment benefitplans,theinterestrate riskismanagedusing Foreign currencyforwardcontractsandoptionsonouranticipated transactions Refer tosection6.7, US-2 Notes maturingin 2048and2049,respectively financing period endedDecember 31,2020,mainlyasaresultoftheimpact oftheCOVID- preferred shares. We also use interest rate locks to hedge the interest rates preferred shares.Wealsouseinterestratelockstohedgetherates plans toamismatchbetweeninvestment growthandobligation with notional amounts of $1,750 million in U.S. dollars ($2,301 million in Canadian with notionalamountsof$1,750 millioninU.S.dollars($2,301 millionCanadian • • • • dividend rateresetson$582 millionofourpreferredshareshavingvarying In 2020,weenteredintointerestrateoptionstoeconomicallyhedgethe on future debtissuances. ($2.9 billion inCanadiandollars)and$2.2 billionPhilippine pesos($59 million of ourrecognizedfinancialliabilities dollars) tohedgetheU.S.currencyexposure ofourSeriesUS-1 and Large anddiversecustomerbase in Canadian dollars) at December 31, 2020, to manage foreign currency risk in Canadiandollars)atDecember 31,2020,tomanageforeigncurrencyrisk as theybecomedue and committed bankfacilitiestofundouroperationsandfulfillobligations We use interest rate swaps to economically hedge dividend rate resets on We useinterestrateswapstoeconomicallyhedgedividendresetson a liabilitymatchingapproach whichreducestheexposure oftheDBpension and commercialpaper maturingin 2021to 2022of$2.2 billion inU.S.dollars reset datesin2021 related toanticipated transactionsandcertainforeigncurrency debt for doubtful accounts balances at December 31, 2020 were $399 million and for doubtfulaccountsbalancesatDecember 31, 2020were$399 millionand

For interestrateoptions,changesinthefairvalue ofthesederivatives are For crosscurrencyinterestrateswaps,changesinthefairvalue ofthese For economichedges,changesinthefairvalue arerecognizedin For cashflowhedges,changesinthefair value arerecognizedinOCIfrom (expense) income derivatives andtherelateddebtarerecognizedin cost ofthenon-financialassetinsameperiodsascorresponding continuing operations,exceptforanyineffectiveportion, whichisrecognized in immediately inearnings is ineffective hedged transactionsarerecognized. recognized immediatelyin the income statements and offset, unlessaportion ofthehedgingrelationship the incomestatementsandoffset, Accumulated OCI plan receivables, were$3,414 millionand$149 million,respectively. inBCE’s 2020 consolidatedfinancialstatements. Liquidity –Contractualobligations which both are reclassified to the income statements or to the initial arereclassifiedtotheincomestatementsorinitial device financingplan Other (expense)income Other (expense)income include thecurrentportion ofwireless , Note 9, Other (expense) income, Note 26,

receivables andallowance BCE In Other (expense)income intheincomestatements . Realized gains and losses . Realizedgainsandlosses , for a maturity analysis , foramaturityanalysis c . 2020Annu a Other Other l R e device device po r t

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MD&A Financial and capital management MD&A Financial and capital management The followingtableprovidesthefairvalue detailsofotherfinancialinstrumentsmeasuredat amortizedcostinthestatementsoffinancial position. FAIR VALUE which reflect varying degreesofrisk. Incometaxesandotherexpenses Certain fairvalue estimatesareaffectedbyassumptionswemakeabout Fair value isthepricethatwouldbereceivedtosellanassetorpaid to net amountsthatwouldberealizediftheseinstrumentsweresettled. thefair reflected inthefair values maynotbethe values. Asaresult, at themeasurementdate. that maybeincurredondisposition offinancialinstrumentsarenot the amountandtimingoffuturecashflowsdiscountrates,all transfer aliabilityinanorderlytransactionbetweenmarketparticipants 88 RISK FINANCIAL Commodity price risk CRTC deferral account CRTC deferralaccount Debt securities and Debt securitiesand Equity pricerisk other debt obligation Longevity risk

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BCE In c . 2020Annu a l R Trade payables and CLASSIFICATION Debt due within one year Debt duewithinoneyear other liabilities and other other liabilitiesand and long-termdebt non-current liabilities A 25% increase (decrease) in the market price A 25%increase(decrease)inthemarketprice A 5% increase (decrease) in the market price A 5%increase(decrease)inthemarketprice OF RISK DESCRIPTION variables heldconstant. Refer tothefollowing Refer tothefollowing post-employment benefitplans. would result in a gain (loss) of $39 million would resultinagain(loss)of$39 million plan. gain (loss) of $3 million recognized in net earnings gain (loss)of$3 millionrecognizedinnetearnings of fuel atDecember 31, 2020wouldresultina of fuel. operations for2020,withallothervariables of BCE’s commonsharesatDecember 31, 2020 compensation plansandtheequitypricerisk on our derivative financialinstruments. on our derivative financialinstruments. We areexposed tolifeexpectancyriskonour We areexposed toriskonthepurchasecost We areexposed toriskonourcashflowrelated held constant. recognized in net earnings from continuing recognized innetearningsfromcontinuing share-basedpayment related toacash-settled from continuing operations, with all other from continuingoperations,withallother to the settlement of equity settled share-based share-based ofequitysettled to thesettlement e po r t

Fair value Fair value FAIR VALUE METHODOLOGY Quoted marketpriceofdebt Present value ofestimatedfuturecashflows discounted usingobservable marketinterestrates section for details sectionfordetails section for details sectionfordetails FINANCIAL STATEMENT CLASSIFICATION MANAGEMENT OFRISKAND • • •

The Bell Canada pension plan has an investment arrangement which The BellCanadapensionplanhasaninvestmentarrangementwhich share-based payment plan December 31, 2020 onBCE’s commonsharestoeconomicallyhedgethe Equity forwardcontractswithafairvalue liabilityof$82 millionat was anassetof$3 million. • • of fuelin 2020and2021.Thefairvalue ofourfuelswapsatDecember 31, 2020 In 2020,weenteredintofuelswapstoeconomicallyhedgethepurchasecost compensation plans and the equity price risk related to a cash-settled compensation plansandtheequitypriceriskrelatedtoacash-settled share-based ofequitysettled cash flowexposure relatedtothesettlement approximately $4 billionofpost-employment benefitobligations hedges part ofitsexposure topotential increasesinlongevity,whichcovers

The carryingvalues ofourcashandequivalents, tradeand wireless payable, notespayable andloanssecuredbytradereceivables compensation payable, severanceandothercostspayable, interest other receivables, dividendspayable, tradepayables andaccruals, approximate fair value as they are short-term. The carrying value of is reduced by an allowance for doubtful accounts and an allowance is reducedbyanallowancefordoubtfulaccountsand for revenueadjustments. that theiraverageremainingdurationisshortandthecarryingvalue Changes inthefairvalue ofthesederivatives arerecordedintheincome Changes inthefairvalue ofthesederivatives arerecordedintheincome statements in share-based payment planand statements in used to hedge equity settled share-basedpayment plans used to hedgeequitysettled device financing Other (expense)income Operating costs CARRYING 20,525 plan receivables approximates fairvalue given VALUE DECEMBER 31,2020 for derivatives used to hedge a cash-settled forderivatives usedtohedgeacash-settled 82 Other (expense)income

24,366 VALUE FAIR 86 CARRYING 18,653 forderivatives VALUE DECEMBER 31,2019 82 20,905 VALUE FAIR 85 The following table provides BCE’s and Bell Canada’s credit ratings, which are considered investment grade, as at March 4, 2021 from DBRS, fromDBRS, The followingtableprovidesBCE’s andBellCanada’s creditratings,whichareconsideredinvestmentgrade,asatMarch 4, 2021 The followingtableprovidesthefairvalue detailsoffinancialinstrumentsmeasuredatfair value inthestatementsoffinancial position. 6.6 As ofMarch 4, 2021,BCEand BellCanada’s fromDBRS,Moody’s credit ratingshavestableoutlooks and S&P. Credit ratingsgenerallyaddresstheabilityofacompany torepay KEY CREDIT RATINGSKEY Our ability to raise financing depends on our ability to access the public Our abilitytoraisefinancingdependsonouraccessthepublic (4) (2) (1) (1) (3) preferred shares. principal andpay interestondebtordividendsissuedandoutstanding Moody’s andS&P. equity and debt capital markets as well as the bank credit market. Our Our equity anddebtcapitalmarketsaswellthebankcreditmarket. ability to access such markets and the cost and amount of funding ability toaccesssuchmarketsandthecostamountoffunding Subordinated long-termdebt MARCH 4,2021 Commercial paper Publicly-traded andprivately-held Publicly-traded andprivately-held Other Preferred shares Derivative financialinstruments Derivative financialinstruments Other December 31,2020 December 31,2019 Long-term debt MLSE financialliability investments investments MLSE financialliability able marketdatasuchasequityprices,interestrates,swapratecurvesandforeigncurrencyexchangerates.

Unrealized gainsandlossesarerecordedinOCIfromcontinuingoperationsimp Non-observ Observ Represents BCE’ its putoption.Theobligationtorepurchaseismarkedmarketeachreporting periodandanygainorlossisrecordedin level 3 financialinstruments. These creditratingsarenotrecommendations tobuy,sellorholdanyofthesecuritiesreferred Each credit rating should be evaluated independently ofany other creditrating. Each creditratingshouldbeevaluated independently Ratings are determinedby the rating agencies based on criteria established fromtimeto time by them, and they do notcomment on market price or suitability for aparticular investor. redit ratings redit C (3) (3) in a significant increase (decrease) to our able marketinputssuchasdiscountedcashflowsandearningsmultiples.Areasonablechangeinourassumptionswouldnotresultasignificantincrease(decrease)to s obligationtorepurchasetheBCEMasterTrust Fund’s (MasterTrust) 9%interestinMLSEatapricenotlessthananagreedminimumprice,shouldtheMasterTrust exercise (4) (4) Trade payables andotherliabilities Trade payables andother liabilities CLASSIFICATION Other non-currentassets Other non-currentassets Other non-current assets Other non-currentassets Other current assets, trade Other currentassets,trade Other current assets, trade Other currentassets,trade Other non-current assets Other non-currentassets payables andotherliabilities, payables and otherliabilities, and liabilities and liabilities non-current assetsandliabilities non-current assetsandliabilities

airment chargesarerecordedin

result in adverse consequences for our funding capacity or ability to available partly depend on our assigned credit ratings at the time capital available dependonourassignedcreditratingsatthetimecapital partly access thecapitalmarkets. have ratingslowerthaninvestment is raised.Investment-gradecreditratingsusuallymeanthatwhenwe borrow money,wequalifyforlowerinterestratesthancompanies that CARRYING VALUE , and they may be revised or withdrawn at any time by the assigning rating agency. , andtheymayberevisedorwithdrawnatany timebytheassigningratingagency. (149) (135) 109 126 129 165 BBB (high) (51) R-2 (high) 71 BBB (low) Pfd-3 DBRS DBRS QUOTED PRICESIN Impairment ofassets ACTIVE MARKETS ASSETS (LEVEL1) FOR IDENTICAL Other (expense)income FAIR VALUE OFASSET(LIABILITY) 3 2 1 – – – – – MOODY’S MOODY’S BELL CANADA Baa2 Baa1 P-2 intheincomestatements.

grade. A ratings downgrade could grade. Aratingsdowngradecould BCE – (1) MARKET DATA intheincomestatements. OBSERVABLE BCE In (1) A-1 (Low) (Canadianscale) P-2 (Low) (Canadianscale) (LEVEL 2) 167 165 128 c (51) . 2020Annu – – – – (1) BBB- (Globalscale) A-2 (Globalscale) NON-OBSERVABLE MARKET INPUTS a l R (LEVEL 3) e po BBB+ (149) (135) 123 127 BBB r (58) (58) S&P S&P t

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MD&A Financial and capital management MD&A Financial and capital management The tablebelowisasummaryofourtotalbankcreditfacilitiesatDecember 31, 2020. Total available liquidityatDecember 31, 2020 was$3.8 billion, comprised This section contains forward-looking statements, including relating to the sources of liquidity we expect to use to meet our 2021 cash requirements. 6.7 Should our 2021 cashrequirementsexceedourand equivalents SOURCES OF LIQUIDITY SOURCES OF CASH REQUIREMENTS CASH $349 million ofcommercialpaper outstanding). $3 billion shall suchmaximumamountofnotesexceed (2) (1) CAPITAL EXPENDITURES Canada’s committedsupporting revolving andexpansion creditfacilities payments, the payment of contractual obligations, maturing debt, payments, thepayment ofcontractualobligations,maturingdebt, paper, willpermitustomeetourcashrequirementsin 2021 forcapital paper programsuptothemaximumaggregateprincipal amountof We expect that our available liquidity, 2021 estimatedcashflows We expectthatouravailable liquidity, 2021 Bell Canada may issue notes under its Canadian and U.S. commercial Bell CanadamayissuenotesunderitsCanadianandU.S.commercial Refer tothesection out itsfibre,rural currency whichequalstheaggregateamountavailable under Bell ongoing operationsandothercashrequirements. expenditures, post-employment benefit plans funding, dividend available incashandequivalents, $400 million of $224 million under our securitized trade receivable programs and $3.15 billion under oursecuritizedtradereceivable programsand$3.15 billion by the$933 million ofproceeds (netofdebtandotheritems)received more Canadiansofwhichapproximately $700millionisexpectedtobe revolving andexpansion creditfacilitiesmaybedrawnatanytime. balance, cashgeneratedfromouroperations,andfundsraisedunder acceleration of $1 billion to $1.2 billion over the next to$1.2 billion acceleration of$1 billion and services. On February 4, 2021, Bell announceda capital investment as atDecember 31, 2020.Thetotalamountofthenetavailable committed available underour$3.5 billion committedbankcreditfacilities(given In 2021, our planned capital spending will be focused on our strategic In 2021,ourplannedcapitalspendingwillbefocusedonstrategic in 2020 fromthesaleofsubstantiallyallourdata centreoperations. invested in2021 imperatives, reflecting an appropriate level of investment in our networks from operations and capital markets financing, including commercial from operationsandcapitalmarketsfinancing,includingcommercial 90 Total committed creditfacilities Total non-committed creditfacilities Total committed andnon-committedcreditfacilities DECEMBER 31,2020 Committed creditfacilities

Bell Canada’ outstanding isincludedindebtduewithinoneyear. As ofDecember | Other Unsecured revolving andexpansion creditfacilities

BCE In iquidity L c in either Canadian or U.S. currency provided that at no time in eitherCanadianorU.S.currencyprovidedthatatnotime . 2020Annu s $2.5 billioncommittedrevolving creditfacilityexpiresinNovember 2024andits$1 billioncommittedexpansion creditfacilityexpiresinNovember 2022. . The investment acceleration will be substantially funded . Theinvestmentaccelerationwillbe substantiallyfunded 31, 2020, Bell Canada’s outstanding commercial paper included $274 million in U.S. dollars ($349 million inCanadiandollars).AllofBellCanada’s commercialpaper inU.S.dollars($349 million 31, 2020,BellCanada’s outstandingcommercialpaper included$274 million Wireless HomeInternet Caution regardingforward-lookingstatements a l R e po r t and 5G networks to even and 5Gnetworkstoeven $3.5 billion (1) (2) two years to roll years toroll in Canadian in Canadian AVAILABLE 3,500 3,606 1,939 5,545 TOTAL 106 atthebeginningofthisMD&A. Some of our credit agreements require us to meet specific financial Some ofourcreditagreementsrequireustomeetspecificfinancial spectrum auctions,aswellforthepayment ofcontingencies. standards. Our expected funding for 2021 is detailed in the following isdetailed inthefollowing standards. Ourexpectedfunding for 2021 POST-EMPLOYMENT BENEFITPLANSFUNDING with theobjectiveofmaintainingadequateliquidity. we would expect to cover such a shortfall by drawing under committed we wouldexpecttocoversuchashortfallbydrawingundercommitted Our post-employment benefitplansincludeDBpensionanddefined programs and credit facilities should give us flexibility in carrying out post-employment benefitplansasat December 31, 2019. We continuously monitor the rapidly changing COVID-19 pandemic for our plans for business growth, including business acquisitions and our plansforbusinessgrowth,includingacquisitionsand inplaceorthroughnewfacilitiesto credit facilitiesthatarecurrently capital marketsfinancingsandoursecuritizedtradereceivable programs, employment benefitplans,resulting from valuations ofourplan contribution (DC)pensionplans,aswellotherpost-employment defined intherelevant debtagreements.Weare incompliancewith debt securitiesupon theoccurrenceofachangecontroleventas debt agreementsrequireustoofferrepurchasecertainseriesof balance, capital markets financings, securitized trade receivable mid-2021. Actuarial valuations werelastperformed foroursignificant rates, plandemographics,andapplicable regulationsandactuarial benefits (OPEBs)plans.Thefundingrequirementsofourpost- returns onpost-employment benefitplanassets,long-term interest assets andliabilities,dependona numberoffactors,includingactual all conditionsandrestrictionsundersuchagreements. a changeofcontrolBCEorBellCanada.Inaddition,someour ratios andtoofferrepay andcancelthecreditagreementsupon In 2021,ourcashflowsfromoperations,andequivalents impacts onoperations,capitalmarketsandtheCanadianeconomy table andissubjecttoactuarialvaluations thatwillbecompletedin the extentavailable. DRAWN – – – – – OF CREDIT LETTERS 1,082 1,188 106 106 – OUTSTANDING COMMERCIAL PAPER 349 349 349 – – AVAILABLE 3,151 3,151 4,008 857 NET – The following table is a summary of our contractual obligations at December 31, 2020 that are due in each of the next five years and thereafter. LITIGATION spaces andrealestate.Theseleasesarenon-cancellable. (1) CONTRACTUAL OBLIGATIONS DIVIDEND PAYMENTS we areexposed toclass actionspursuanttowhichsubstantialmonetary Our commitments for leases not yet commenced include OOH advertising Our commitments for leases not yet commenced include OOH advertising Our commitmentsforproperty,plantandequipmentintangible Purchase obligations consist of contractual obligations under service Purchase obligationsconsistofcontractualunderservice claims and legal proceedings. Subject to the foregoing, and based on claims andlegal proceedings. Subjecttotheforegoing, andbasedon damages maybeclaimed.Duetothe inherentrisksanduncertaintiesof claims and legal proceedings seeking monetary damages and other relief. obligations. expand andupdate ournetworkstomeetcustomerdemand. of dividendsissubjecttothediscretionBCEBoard. and product contracts for operating expenditures and other purchase assets includeprogramandfeaturefilmrightsinvestmentsto In 2021, the cash dividends to be paid on BCE’s common shares are expected to be higher than in 2020 as BCE’s annual common share dividend In particular, because of the nature of our consumer-facing business, In theordinarycourseofourbusiness, webecomeinvolved invarious increased by5.1%to$3.50 per commonsharefrom$3.33 per commonshareeffectivewiththedividendpayable onApril 15, 2021.Thedeclaration information currently available andmanagement’sinformation currently assessmentof the the litigation process, we cannot predict the final outcome or timing of the litigationprocess,wecannotpredict thefinaloutcomeortimingof Total Total netpost-employment benefitplans Commitments (off-balancesheet) AT DECEMBER31,2020 2021 EXPECTEDFUNDING OPEBs DC pensionplans DB pensionplans Recognized financialliabilities

Includes imputedinterestof$950 million. Commitments for property, plant Commitments forproperty,plant Purchase obligations Leases committednotyetcommenced MLSE financialliability Net (receipts)payments oncrosscurrencybasisswaps Interest payable on long-term debt, notespayable Interest payable onlong-termdebt, Loan securedbytradereceivables Lease liabilities Notes payable Long-term debt and equipmentintangibleassets and loansecuredbytradereceivables (1)

5,098 1,050 545 975 149 844 921 392 221 2021 (1) 2 As aregularpart ofourbusiness, weenterintoagreementsthatprovide 2021, please see the section entitled 2021, pleasesee the sectionentitled (OFF-BALANCE SHEET) INDEMNIFICATIONS ANDGUARANTEES purchases and development of assets, securitization agreements and purchases anddevelopmentofassets,securitizationagreements We cannotreasonablyestimatethemaximumpotential amountwe For adescriptionofimportant legalproceedingspending atMarch 4, defences andweintendtovigorously defendourpositions. our financialstatementsoroperations. Webelievethatwehavestrong or creditriskprofile.Wehavenotmadeanysignificant paymentsunder determine how they could affect our future liquidity, capital resources could berequiredtopay counterparties becauseofthenaturealmost exposure, manydonotspecifyamaximumamountorterminationdate. management believes that the ultimate resolution of these claims and management believesthattheultimate resolutionoftheseclaimsand 2021, merits oftheclaimsandlegalproceedings pendingatMarch 4, all of these indemnifications and guarantees. As a result, we cannot we cannot all oftheseindemnificationsandguarantees.Asaresult, legal proceedings is unlikely to have a material and negative effect on legal proceedingsisunlikelytohave amaterialandnegativeeffecton leases. Whilesomeoftheagreementsspecifyamaximumpotential indemnifications orguaranteesinthe past. involving business dispositions, sales of assets, sales of services, the BCE 2020 AIF. for indemnificationsandguaranteestocounterparties intransactions 4,756 1,785 479 835 824 832 2022 (1) 2 – – – 3,972 1,665 331 608 756 611 2023 1 – – – – 3,072 1,278 225 416 693 459 2024 1 – – – – 3,566 2,125 contained in Legal proceedings containedin 144 250 641 406 2025 – – – – – BCE In c . 2020Annu 23,925 13,540 7,623 2,077 AFTER THERE- 269 352 64 – – – – a l R 44,389 11,381 20,614 e 1,993 3,436 1,050 5,306 po TOTAL TOTAL 149 392 370 120 180 r 62 70 t 6

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MD&A Financial and capital management MD&A Selected annual and quarterly information 7 The emergencymeasuresputinplaceCanadatocombatthe The followingtableshowsselectedconsolidatedfinancialdataofBCE 7.1 statements, whichareprepared inaccordancewithIFRSasissued On June 1, 2020,BCEannouncedthatithadenteredintoanagreement disruptedretailandcommercial significantly COVID-19 pandemic flows to make them consistent with the presentation for the current flows tomakethemconsistentwiththepresentationforcurrent Wireless andBellMediasegments.Seesection1,Overview–COVID-19, consolidated income statements and consolidated statements of cash consolidated incomestatementsandofcash all threeofoursegments,withamorepronouncedimpact onourBell by the International Accounting Standards Board (IASB). We discuss by theInternationalAccountingStandardsBoard(IASB).Wediscuss and pervasive impact on our financial and operating performance activities acrossmostsectorsoftheeconomyandhadanadverse in this MD&A for more details. in thisMD&A to the sale for the previous years to discontinued operations in our to thesaleforpreviousyearsdiscontinuedoperationsinour transaction valued at$1.04 billion. Wehavereclassifiedamountsrelated to sellsubstantiallyallof itsdatacentreoperations inanall-cash throughout throughout thisMD&A. the factorsthatcausedourresultstovary overthepast twoyears for 2020, 2019 and 2018 based on the annual consolidated financial basedontheannualconsolidatedfinancial and 2018 for 2020, 2019 92

elected annual and quarterly information annual quarterly elected and |

nnual financial information financial nnual BCE In S A c . 2020Annu 2020. Consequently, thisunfavourably most of2020.Consequently, affected a l R e po r t As required, we adopted IFRS 16 – Leases effective January 1, 2019. We $211 million. The capital gain as a result of the sale is mainly offset by $211 million. Thecapitalgainasaresultofthesaleismainlyoffsetby sold were no longer depreciated or amortized effective June 1, 2020. 2020. sold werenolongerdepreciatedoramortizedeffectiveJune 1, year. Property,plantandequipmentintangibleassetsthatwere purposes. Seesection10.2, potentially distorttheanalysisoftrendsinbusinessperformance.Asa performance indicators(KPIs) EPS and free cash flow to exclude the impacts of discontinued operations EPS andfreecashflowtoexcludetheimpacts ofdiscontinuedoperations of debt and other items) and recorded a gain on sale, net of taxes, of of debtandotheritems)recordedagainonsale,nettaxes, deficit atJanuary 1, 2019. result of this change, prior periods have been restated for comparative and continue to be reported under IAS 17 – Leases, as permitted by –Leases,as permittedby and continuetobereported underIAS 17 adopted IFRS 16 using a modified retrospective approach whereby adopted IFRS 16 as theymayaffectthecomparability ofourfinancialresultsandcould In Q4 2020, we completed the sale for proceeds of $933 million (net (net wecompletedthesaleforproceedsof$933 million In Q4 2020, In 2020, we updated our definitions of adjusted net earnings, adjusted the recognitionofpreviouslyunrecognizedcapitallosscarryforwards. the initial adoption of IFRS 16 was reflected as an adjustment to the wasreflectedasanadjustmenttothe the initialadoptionofIFRS 16 Thecumulativeeffectof the specifictransitionprovisionsofIFRS 16. the financialstatementsofpriorperiodspresentedwerenotrestated Non-GAAP financial measures and key Non-GAAP financialmeasuresandkey , in this MD&A for moredetails. , inthisMD&A (1) Adjusted EBITDA margin(%) Total operatingrevenues Amortization Adjusted EBITDA Severance, acquisitionandothercosts Return onequity(%) RATIOS CONSOLIDATED INCOMESTATEMENTS Other (expense)income Finance costs Net earningspercommonshare–basicanddiluted Net earningspercommonshare–basicanddiluted Depreciation Net earnings Operating costs Operating revenues Net earningsattributableto: Net earningsfromcontinuingoperations Net earningsfromcontinuingoperationsattributableto: Net earnings Net earningsfromdiscontinuedoperations Income taxes Net earningsfromcontinuingoperations Impairment ofassets

Net earningsattributabletocommonshareholdersdividedbytotalaverageequity toBCEshareholdersexcludingpre Continuing operations Common shareholders Common shareholders Service Discontinued operations Preferred shareholders Preferred shareholders Non-controlling interest Product Non-controlling interest Interest onpost-employment benefitobligations Interest expense (1) (13,276) 22,883 19,832 (1,110) (3,475) 2,699 2,498 2,473 2,272 2,699 2,473 9,607 3,051 (792) (194) (472) (929) (116) 0.25 2.76 2.51 14.7% 42.0% ferred shares. 136 136 226 2020 (46) 65 65 BCE In (13,787) 10,006 23,793 20,566 (1,129) (1,125) (3,458) 3,253 3,040 3,224 3,011 3,253 3,224 3,227 (102) (886) (114) 0.03 3.37 3.34 18.2% 42.1% 151 151 2019 (63) c 62 62 29 95 . 2020Annu a l R (13,855) 23,291 20,264 e (3,110) 2,973 2,785 2,948 2,760 2,973 2,948 9,436 3,027 po (146) (980) (200) (995) (852) (136) 0.03 3.10 3.07 17.1% 40.5% 144 144 2018 r (69) 44 44 25 t

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MD&A Selected annual and quarterly information MD&A Selected annual and quarterly information (2) (1) Total shareholder return 94 Total equity Total non-currentliabilities Total assets Average numberofcommonshares(millions) Capital intensity(%) SHARE INFORMATION Closing marketpricepercommonshare(dollars) Common sharesoutstandingatendofyear(millions) Cash flowsusedinfinancingactivities OTHER DATA Cash flowsusedininvestingactivities Price toearningsratio(times) Cash flowsfromoperatingactivities CONSOLIDATED STATEMENTS OFCASHFLOWS RATIOS Dividends declaredonpreferredshares Dividends declaredoncommonshares Dividends declaredpercommonshare(dollars) CONSOLIDATED STATEMENTS OFFINANCIALPOSITION Free cashflow Number ofemployees(thousands) Equity attributabletoBCEshareholders Debt duewithinoneyear(includingnotespayable andloanssecuredbytradereceivables) Market capitalization Property, plantandequipment Long-term debt s commonsharepriceattheendofyeardividedbyEPS. s commonsharepriceattheendofyearmultipliedbynumber of commonsharesoutstandingattheendyear.

BCE’ BCE’ | Cash dividendspaid bysubsidiariestonon-controllinginterest Cash dividendspaid onpreferredshares Cash from(usedin)discontinuedoperations Cash dividendspaid oncommonshares Capital expenditures Business acquisitions Issue ofcommonshares Net (repayment) issuanceof debtinstruments

BCE In c . 2020Annu (1) a l R e po (2) r t 49,226 21,329 20,989 31,065 23,906 60,665 27,513 (3,011) (4,135) (2,975) (4,202) (3,540) 19.72 54.43 904.4 904.3 3,348 7,754 2,417 (136) (132) (638) 3.33 18.4% 892 2020 (4.1%) (53) (65) 51 26 54,379 21,408 21,074 28,961 22,415 60,146 27,636 (2,857) (4,202) (2,819) (1,209) (3,974) (4,036) 17.85 60.16 903.9 900.8 3,738 7,958 3,881 (151) (147) 3.17 16.7% 17.5% 240 2019 (65) (18) (51) 52 48,440 20,689 20,363 25,982 19,760 57,100 24,844 (2,712) (3,198) (2,679) (3,956) (4,386) 17.40 53.93 898.2 898.6 3,489 7,384 4,645 (144) (149) (395) 3.02 17.0% 160 (5.6%) 2018 (16) (15) 53 11 The followingtableshowsselectedBCEconsolidatedfinancialdatabyquarterfor 2020 and2019.Thisquarterlyinformationisunauditedbut 7.2 COVID-19 pandemic onourfinancialresultsduring2020. has been prepared on the same basis as the annual consolidated financial statements. We discuss the factors that caused our results to vary over the past eight quarters throughout this MD&A. Refertosection1, over thepast eightquartersthroughoutthisMD&A. Total operatingrevenues Adjusted EBITDA Amortization Severance, acquisitionandothercosts Cash flowsfromoperatingactivities Capital expenditures Other (expense)income Operating revenues Depreciation Finance costs OTHER INFORMATION Free cashflow Income taxes Impairment ofassets Net earningsattributabletocommonshareholders Net earningsfromcontinuingoperationsattributable Net earnings Net earningsfromdiscontinuedoperations Net earningsfromcontinuingoperations Net earningspercommonshare– Weighted average number of common shares Weighted averagenumberofcommonshares Net earningspercommonshare– Service Continuing operations Discontinued operations Product Interest expense Interest onpost-employment outstanding –basic(millions) to commonshareholders uarterly financial information financial uarterly benefit obligations Q

basic anddiluted basic anddiluted (1,494) 904.4 2,404 6,102 1,012 5,090 1,631 (191) (872) (274) (233) 0.23 0.75 0.98 889 678 932 211 721 (38) (12) (11) (52) 92 Q4 (1,031) 904.3 2,454 5,787 4,924 2,110 1,034 (262) (876) (279) (232) 0.01 0.76 0.77 863 692 686 740 734 (29) (12) (26) Q3 (4) 6 , in this MD&A foradescriptionoftheimpacts ofthe Overview –COVID-19,inthisMD&A 2020 904.3 2,331 5,354 4,800 2,562 1,611 (449) (869) (280) (234) (900) 0.26 0.26 554 237 233 294 290 (96) (80) (11) (22) Q2 4 – 904.1 2,418 5,640 5,018 1,451 (243) (858) (277) (230) (777) 0.01 0.74 0.75 622 680 675 733 728 611 (47) (12) (16) (7) Q1 5 (1,150) 1,040 903.8 2,484 6,275 5,235 2,091 (245) (854) (285) (224) 0.01 0.73 0.74 672 667 723 718 874 (96) (18) (16) (28) Q4 5 (1,009) 901.4 2,568 5,940 5,141 2,258 1,169 (319) (852) (280) (225) 0.96 0.96 799 867 859 922 914 (16) (23) 62 Q3 (1) BCE In 8 – 2019 c . 2020Annu 899.5 2,572 5,889 5,190 2,093 1,076 (275) (879) (279) (220) (967) 0.01 0.84 0.85 699 761 754 817 810 (54) (15) (39) Q2 (1) 7 a l R e 898.4 2,382 5,689 5,000 1,516 po (290) (873) (281) (217) (848) 0.01 0.81 0.82 689 105 740 731 791 782 619 r (16) (24) t (4) Q1 9

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MD&A Selected annual and quarterly information MD&A Selected annual and quarterly information FOURTH QUARTER HIGHLIGHTS same periodlastyear, primarilyfromreducedservicerevenueflow- volumes and outbound roaming revenues. The year-over-year decline Q2 2020 due to moderating impacts of the COVID-19 pandemic. The The tomoderatingimpacts oftheCOVID-19 pandemic. Q2 2020 due Q4 2019. The year-over-year decline has improved sequentially since product revenue BCE adjustedEBITDA Bell Wirelessoperatingrevenues BCE net earnings compared BCE operatingrevenuesdecreasedby2.8%inQ4 2020, higher depreciation and amortization, higher severance, acquisition higher depreciation and amortization, higher severance, acquisition of theCOVID-19 pandemic. overages driven by greater customer adoption of monthly plans with overages drivenbygreatercustomer adoptionofmonthlyplanswith compared to the same period last year, driven by lower service and completion ofthesalesubstantiallyallourdatacentreoperations, declines acrossallthreeofoursegments, decrease in Q4 2020 adjusted EBITDAdecrease inQ4 2020 adjusted wasdrivenbydeclinesacross and othercostshigherexpense. margin of 39.4% in Q4 2020, representing a 0.2 pts decline over the declineoverthe representing a0.2 pts inQ4 2020, margin of 39.4% reduced customertravelduetotheCOVID-19 pandemic, decreased data revenues wasmainlyduetoloweroutboundroamingdrivenby result of againonsale,net of taxes, of $211 million in Q4 2020 from the mainly duetohighernetearningsfromdiscontinuedoperationsasa all three of our segments mainly due to lower revenues, mitigated all threeofoursegmentsmainlyduetolowerrevenues,mitigated and 2.7%,respectively.TheservicerevenuedeclineinQ4 2020 has with more pronounced adverse impact ofthe COVID-19 pandemic, lower income taxes. This was partly offset byloweradjustedEBITDA,lower incometaxes.Thiswaspartly lower in-quarterimpairment chargesatourBellMediasegmentand impact oftheCOVID-19 pandemic. ThisresultedinanadjustedEBITDA in part byreducedoperatingexpenses,asaresultofthecontinued lowerserviceandproductrevenuesof2.8% in Q4 2020 reflected impacts onmediaadvertisingrevenues,aswellwirelessproduct improved sequentiallysinceQ2 2020. ThedecreaseinQ4 2020 service improved sequentiallysinceQ2 2020 due tothemoderatingimpacts through, partly offsetbyloweroperatingexpenses. through, partly to the same period in 2019. The decrease in Q4 2020 was driven by drivenby to thesameperiodin2019.ThedecreaseQ4 2020 was 96 Total BCEadjustedEBITDA Total BCEoperatingrevenues ADJUSTED EBITDA OPERATING REVENUES Bell Media Bell Wireline Bell Wireless Bell Media Bell Wireline Bell Wireless Inter-segment eliminations

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BCE In c . 2020Annu s . Theservicerevenuedeclineof2.5%year increased by 28.9% in Q4 2020, compared to Q4 2019, a l R decreased by 3.2% in Q4 2020, compared to decreasedby3.2%inQ4 2020, e po r t decreased by 1.9% in Q4 2020, decreasedby1.9%inQ4 2020, primarily due to the continuing due tothecontinuing

over

year, has sales in the government sector in Q4 2019, combined with reduced combined with reduced sales in the government sector in Q4 2019, services salesduetoreducedcustomerspendinganddelays in ThedecreaseinadjustedEBITDA inQ4 2020 was since Q2 2020. was mainly due to lower commissions driven by reduced subscriber was mainlyduetolowercommissionsdrivenbyreducedsubscriber postpaid andprepaid subscriberbase pandemic. Thiswasmoderatedbythecontinuedgrowthinbothour price increasesalsoattributabletothe offsetbyhighernetworkoperatingcoststosupportpartly therolloutof premium-value devices,higherhandsetpricesandlowerdiscounting. Boxing Daypeakperiods,partially offsetbyanincreasedsalesmixof Bell Wirelineoperatingrevenues Bell Wireless adjusted EBITDA decreased by 3.0% in Q4 2020, compared higher datathresholdsandtheimpact ofdelayedpriceincreasesdue declined by11.5%inQ4 2020 our 5G network. Adjusted EBITDA margin, based on wireless operating expenses of1.2%yearoveryear. Thedecreaseinoperatingexpenses customer spendingattributableto theCOVID-19 pandemic. contribution in 2019 fromthefederalelection.Thiswasoffsetinpart contribution in 2019 upgradesa from reduced traffic inour retail distributionchannelsas by 0.7%yearoverdriven base along with the flow-through of pricing changes. Product revenues base alongwiththeflow-throughofpricingchanges.Productrevenues revenue decreased by 0.6% year over year from the ongoing erosion by loweroperatingexpenses. revenues, of37.5%decreased by0.4 pts, compared tothe same period offsetbyloweroperating mainly drivenbytherevenuedecline,partly result ofCOVID-19 restrictions, particularly during accessing customersitesasaresultoftheCOVID-19 pandemic, delayed activations, lowerpayments toothercarriersrelated to thedecline by thecontinuedexpansion ofourretailInternetandIPTVsubscriber labour costsdrivenbyreducedstorehoursduetoCOVID-19 restrictions, in voice, satellite TV, and legacy data volumes, lower business solution in 2019,drivenbythelowerservicerevenueflow-through,moderated in roamingrevenuesasaresultoftheCOVID-19 pandemic andlower to accommodations provided to customers as a result of the to lastyear, drivenbybothlowerserviceandproductrevenues.Service to lastyear, reflectingcontinuedquarterlyyear-over-yearimprovement Q4 2020 Q4 2020 2,404 1,312 3,095 2,408 6,102 (192) 189 903 791 Q4 2019 Q4 2019 2,484 1,348 3,135 2,454 6,275 , compared toQ4 2019, mainlyduetostrong (193) 205 931 879 declinedby1.3%inQ4 2020 lower s . Product revenues decreased . Productrevenuesdecreased COVID-19 gross activations anddevice $ CHANGE $ CHANGE (173) (80) (16) (36) (28) (88) (40) (46) 1 the pandemic andthe Black Friday and , compared % CHANGE % CHANGE COVID-19 COVID-19 (10.0%) (2.8%) (3.2%) (7.8%) (2.7%) (3.0%) (1.3%) (1.9%) 0.5% 5G network. Wireline capitalinvestments grewby$143 million yearover spending was $12 million higher year over year, due to subscribers fromDTC start of the NHL and NBA 2020/2021 season andcancellationof start oftheNHLandNBA2020/2021 season Q4 2020 due togreaterconstructionactivityfollowingtheslowerpace Q4 2019 of certainBDU CFL season).Thisdeclinewasmitigatedinpart bythecontributionfrom COVID-19 pandemic. This was offset in part by higher costs related to Q4 2019, year, mainlyduetothetimingofourspending,aswecontinuedroll year overyear, primarilyduetotheongoingdeploymentofourmobile year-over-year increasewasdrivenbygreaterspendingacrossallthree production shutdowns and delays. This decline in operating expenses was production shutdownsanddelays.Thisdeclineinoperatingexpenseswas EBITDA marginof42.4%inQ4 2020 decreased by0.6 pts compared to Bell Media adjusted EBITDA decreased by 7.8% in Q4 2020, compared BCE capitalexpenditures Bell Mediaoperatingrevenue Bell WirelineadjustedEBITDA of Noovo combinedwith network anddigitalplatformenhancements. networkstomorelocations.BellMediacapital andWTTP out ourFTTP of oursegments.Wirelesscapitalspendingincreasedby$189 million of spendingearlierintheyearasaresult compared to corresponding capitalintensity ratio of 24.5% in the quarter, up6.2 pts offset inpart byhighercostsrelatedtotheVandNoovo.ca acquisition. events along with lower foreign and Canadian programming costs from costs attributabletotheCOVID-19 pandemic fromreduced sports rights operating costswasmainlydrivenbylowerprogrammingandproduction quarterly basis. The year-over-year decline was due to lower revenues, continuing but moderating impact of the decline wasdrivenbyloweradvertisingrevenuesmainlyduetothe due tohigherdemandbyTVadvertisers.TheQ4 2020 year-over-year of PPE,andincrementalbuildingcleaningsupplies, cost ofgoodssoldandprogrammingcontentcostsrelatingto costs. Thedecreaseinoperatingcostswasmainlyduetolowerproduct uncertainty anddelayedand/orcancelledsporting events(delayed moderated byreduced operating costs. The revenues also declined year over year primarily due to the renewal in revenues alsodeclinedyearoverprimarilyduetotherenewalin reduced spendingbyadvertisersacrossallplatformsfromtheeconomic and broadcasting costs due to delays and/or cancellations of sporting advertising spend to drive greater activations in the quarter. Adjusted last year, reflectinglowerservicerevenueflow-through. in Q4 2020, compared tothesameperiodlastyear. Thisresulted ina to thesameperiodlastyear, whichcontinuedtoimproveonasequential the the sameperiodlastyear the to vendor contractsavings,aswellloweremployeetravelduetothe the revenuedecline,alongwithlaboursavingsmainlyattributable C V OVID-19 acquisition drivenbylowerrevenues,offsetinpart byreducedoperating

18.3% achievedinQ4 2019. Capitalspendingrampedupin pandemic, mainly conventional TV advertising revenue. Subscriber to conventional TV advertising revenue. Subscriber Crave andsports streamingservices. contracts, partly offset by continued growth in offset bycontinuedgrowthin contracts, partly of$1,494 million grewby29.9%,or$344 million , improved declinedby2.7%inQ4 2020

decline from sequential employee redeployment, purchase purchase employee redeployment,

of 10.0%inQ4 2020, compared to COVID-19 year-over-year COVID-19 ly sinceQ2 2020, mainly pandemic resulting in along with the integration the integration pandemic. The , compared to decrease in decrease in higher higher the the

$84 million, yearoveryear, mainlyduetolowerin-quarterimpairment $874 million in Q4 2019. The decrease was mainly attributable to lower $0.74 per share, reported inQ4 2019. Theyear-over-yearincreasewas Q4 2020 increased by $24 million, compared to Q4 2019, mainly due to Q4 2020 compared to $2,091 million in Q4 2019. The decrease is in Q4 2019. to $2,091 million Q4 2020 compared year overyear, mainlyduetoahigherassetbase. year overyear, mainlyduetolowergainsoninvestmentsasaresult year over year, mainly due to a higher asset base as we continued BCE amortizationof$233 million inQ4 2020 increased by$9 million, BCE otherexpenseof$38 million inQ4 2020 increased by$20 million, by inQ4 2020 decreased BCE impairment ofassets$12 million BCE interestexpense BCE depreciationof$872 million inQ4 2020 increased by$18 million, BCE severance,acquisitionandothercosts BCE freecashflow BCE cashflowsfromoperatingactivities BCE netearningsattributabletocommonshareholders BCE incometaxes higher acquisition and other costs, partly offsetbylowerseverancecosts. higher acquisitionandothercosts,partly higher depreciation and amortization, higher severance, acquisition and higher depreciationandamortization,severance,acquisition of a gain in Q4 2019 on BCE’s obligation to repurchase at fair value of againin Q4 2019 on operations from our equity investments, higher losses on retirements operations fromourequityinvestments,higherlossesonretirements charges atourBellMediasegment. offset byhigheraveragedebtlevels. compared toQ4 2019, mainlyduetoloweraverageinterestrates,partly expenditures. operations andacquisitionother costspaid, and higher capital cash flows from operating activities, excluding cash from discontinued of installmentsandloweradjustedEBITDA. other costsandhigherexpense.Adjustednetearningsdecreased completion ofthesalesubstantiallyallourdatacentreoperations, compared toQ4 2019, mainlyasaresultofhighervalue ofpreviously share-basedcompensationplans. equity settled unrecognized taxbenefitsandlowertaxableincome. by growth in accounts receivable from increased consumer activity, mainly attributabletolowercashfromworkingcapitaldriven result of againonsale,net of taxes, of $211 million in Q4 2020 from the mainly duetohighernetearningsfromdiscontinuedoperationsasa net mark-to-market losses on derivatives used to economically hedge adjusted EPSdecreasedto$0.81,from$0.86 in Q4 2019. and higher early debt redemption costs. This was partly offset by lower offsetbylower and higherearlydebtredemptioncosts.Thiswaspartly and disposals of property, plant and equipment and intangible assets IPTV services. lower income taxes. This was partly offset byloweradjustedEBITDA,lower incometaxes.Thiswaspartly lower in-quarterimpairment chargesatourBellMediasegmentand including ahighervolume ofwireless in Q4 2020, or $0.98 per share, were higher than the $672 million, or in Q4 2020, or$0.98 per share,werehigherthan the$672 million, or the minorityinterestinoneofBCE’s subsidiaries,higherlosseson to investinourbroadbandandwirelessnetworksaswell the timingofsupplier payments, higher income taxes paid duetotiming and inQ4 2019, compared to $784 million inQ4 2020, to $731 million of$191 million inQ4 2020 decreased by$54 million, generatedinQ4 2020 was $92 million, compared to of$274 million inQ4 2020 decreased by$11 million, device financing BCE In c was $1,631 million in was $1,631 million . 2020Annu o 5 millionin of$52 plan sales, and plan sales,and of$889 million a l R e po r t

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MD&A Selected annual and quarterly information MD&A Selected annual and quarterly information Some of our segments’ revenues and expenses vary by season, slightly SEASONALITY CONSIDERATIONS SEASONALITY seasonal sequentialdeclinesinthefourthandfirstquarters.However, variations describedbelowmaynot which mayimpact quarter-to-quarter pandemic hashadsignificantimpacts onourbusinessand operating results are influenced by the timing of new Bell Wirelessoperatingresultsareinfluencedbythetimingofnew data options have become more prevalent, resultinginlessvariabilitydata optionshavebecomemoreprevalent, quarters. For ABPU,historicallywehaveexperiencedseasonalsequential effects, subscriberadditionsandretentioncostsduetodeviceupgrades characterize ourbusiness. of customer behaviourandspending,aswellthewayweoperate during business and future financial results related to contract renewals are typically higher in the third and fourth related tocontractrenewalsaretypicallyhigherinthethirdandfourth back-to-school, Black Friday and the Christmas holiday period, as well mobile devicelaunchesandseasonalpromotionalperiods,suchas results forthemostpart of2020.Dueto and roaming in the spring and summer months, followed by historical and roaminginthespringsummermonths,followedbyhistorical as thelevelofoverallcompetitiveintensity.Becausetheseseasonal business. Accordingly,itisdifficultatthistimetoestimate in chargeabledatausage. increases inthesecondandthirdquarters,duetohigherlevelsofusage this timetoestimate this seasonaleffectonABPUhasmoderated,asunlimitedvoice and the 98

the COVID-19pandemic ontheseasonalitytrendsthatnormally |

severity and duration BCE In the COVID-19pandemic c . 2020Annu a l R the impacts oftheCOVID-19pandemic onour e po r of the t which affected COVID-19 pandemic, it is difficult at fully reflectthe . Therefore, financial uncertaint and results. the typical trends continue to affect continue toaffect ies The experienced experienced the relating to COVID-19 COVID-19 seasonal seasonal financial financial impacts our our sports leagueseasonsandotherspecialsporting eventssuchasthe special events or broad-based marketing campaigns also may have seasonal variations. Seasonalvariations aredrivenbythestrength Olympic Games,NHLandNBAplayoffsWorld Cupsoccer, aswell Bell Media Bell Wireline of TV ratings, particularly during the fall programming season, major efforts conductedduringvarious timesoftheyeartocoincidewith on thestrengthofeconomyandpresencetargetedsales customers. However, thismayvary fromyeartodepending of historicallyhigherdataandequipmentproductsalestobusiness attributable largely to residential moves during the summer months attributable largely to residential moves during the summer months are largely derived from the sale of advertising, the demand for which are largelyderivedfromthesaleofadvertising,demandforwhich and theback-to-schoolperiodinthirdquarter. Targeted marketing as fluctuationsinconsumerretailactivityduringtheyear. an impact onoverallwirelineoperatingresults. Internet subscriber activity is subject to modest seasonal fluctuations, Internet subscriberactivityissubjecttomodestseasonalfluctuations, is affectedbyprevailing economicconditionsaswellcyclicaland initiatives, which can influence customer spending. Home Phone, TV and revenue and related expenses from TV and radio broadcasting revenueandrelatedexpensesfromTVradiobroadcasting revenue tends to be higher in the fourth quarter because revenuetendstobehigherinthefourthquarterbecause 8 The The CRTCcanalsomandatetheprovisionofaccessbycompetitorsto This section describes certain legislation that governs our business and 8.2 8.1 Under the provides highlights of recent regulatory initiatives and proceedings, provides highlightsofrecentregulatoryinitiativesandproceedings, part, notsubjecttoretailpriceregulation. part, Bell Mobility,NorthernTel,Télébec andNorthwestel. mandateswholesalehigh-speedaccessforwireline Notably, itcurrently additionallegislation Bureau. AsaresultoftheCOVID-19 pandemic, Partnership (ExpressVu),BellMedia,NorthernTel,LimitedPartnership (NorthernTel), Télébec,LimitedPartnership (Télébec)andNorthwestel, compete in the marketplace. Bell Canada and several of its direct and compete in the marketplace.Bell Canada andseveral of itsdirectand common carriers (TCCs),mustseekregulatoryapproval foralltele cations serviceprovidersinCanada, knownastelecommunications or regulations,regulatoryinitiativesproceedings,government communications services, unless the services are exempt or forborne of the BCE group of companies and partnerships, including Bell Canada, direction totheCRTConanyofitspolicy objectives.Itapplies toseveral of ourservicesandnegativelyimpact thefinancialperformanceofour extensions, limitourflexibility,influencethemarketstructure,improve our wirelineandwirelessnetworkstherateswecanchargethem. determined thatcompetitionissufficienttograntforbearancefrom competition toprotecttheinterestsofconsumers.TheCRTChas as consultations orpositions, mayfurtherbeadoptedor instituted, government departments, inparticular ISEDandtheCompetition of theGovernmentCanadaresponsible forregulatingCanada’s government consultationsandpositions thataffect undermine ourincentivestoinvestinnetworkimprovementsand us, influenceourbusinessandmaycontinuetoaffectability are governed by the businesses aresubjecttothe businesses. OurTVdistributionandourradiobroadcasting business position ofourcompetitors,limitnetwork-based differentiation mandated services,aswelllowerwholesalerates,could broadband aswelldomesticwirelessroamingservices.Additional majority ofourretailwirelineandwirelesstelecommunicationsservices. regulatory agencies,includingtheCRTC,aquasi-judicialagency regulation underthe and providestheGovernmentofCanadawithpower togivegeneral and mayadverselyimpact ourabilitytocompeteinthemarketplace. retail priceregulationunderthe It defines the broad objectives of Canada’s telecommunications policy In particular, theCRTCregulatespriceswecanchargeforretail is affectedbyregulations,policies anddecisionsmadebyvarious indirect subsidiaries, including Bell Mobility, Bell ExpressVu Limited from regulation. The CRTC may exempt an entire class of carriers from the casemaybe,thatimpose additionalconstraints onouroperations telecommunications andbroadcastingindustries,otherfederal the telecommunications services when it determines there is not enough telecommunications serviceswhenitdetermines there isnot enough egulatory environmentegulatory Radiocommunication Act governs telecommunications in Canada. Telecommunications ActgovernstelecommunicationsinCanada.

elecommunications Act R T Introduction Telecommunications Act,allfacilities-basedtelecommuni if the exemption meets Telecommunications Actiftheexemption meets Telecommunications Act, the and/orthe and are, for the most Broadcasting Actandare,forthemost Telecommunications Act Bell CanadaAct Broadcasting Act, . Our business . Ourbusiness forthevast - - (the Acts). The legislative review is intended Telecommunications Act(theActs).Thelegislativereviewisintended Therefore, the impact, if any, of these recommendations and the draft ifany,oftheserecommendationsandthedraft Therefore, theimpact, The specificsofsuchcontributionwillbedeterminedthroughtheCRTC’s Although most of our retail services are not price-regulated, government Although mostofourretailservicesarenotprice-regulated,government REVIEW OF KEY LEGISLATION OFREVIEW KEY REVIEW OFREVIEW MOBILE SERVICES WIRELESS On June 5, 2018,theMinisterofInnovation, ScienceandIndustry On June 5, On February 28, 2019, the CRTC launched its planned review of the 2019,theCRTClaunched itsplannedreviewofthe On February 28, Canadian ownershiprequirements.BCEmonitorsandperiodically On November 3, 2020,theGovernmentofCanadatabledBillC-10, public consultation processes and enforced byway ofconditions pieces oflegislationcouldhavematerialimpacts forourbroadcasting, effective anti-piracy remedies could have negative financial, operational, effective anti-piracyremediescouldhavenegativefinancial,operational, governments or regulatory agencies, increasing regulation oralack of of acquisitions,broadcastandspectrumlicensing,foreignownership broadcasting and telecommunications industries. The review was led broadcasting andtelecommunicationsindustries.Thereviewwasled review ofthe reputational orcompetitiveconsequencesforourbusiness. regulatory matterssuchasmandatoryaccesstonetworks,spectrum mobile wireless service regulatory framework, with a focus on regulatory frameworkformobile wirelessservices.Thepurpose of reports on the level of non-Canadian ownership of its common shares. results isunclearatthistime. amendments to the royal assentandwhenanyadoptedreformswouldcomeintoforce. receive whether Bill C-10 will may be adopted by the government, broadcasting systeminamannerthattheCRTCdeemsappropriate. business inCanadacouldberequiredtocontributetheCanadian by apanel ofexternalexpertstasked withconsultingindustrymembers modernize theBroadcastingActwillbeforthcomingatalaterdate. and the Minister of Canadian Heritage announced the launch of a and theMinisterofCanadianHeritageannouncedlauncha approval auctions, theimposition ofconsumer-related codesofconduct, and theCompetitionBureaucontinuetoplayasignificantrolein agencies anddepartments suchastheCRTC,ISED,CanadianHeritage requirements, and control of copyright piracy. Adverse decisions by requirements, andcontrolofcopyrightpiracy.Adversedecisionsby a report that included 97 recommendations. Reforms of these key Reformsofthesekey a report thatincluded97 recommendations. and Canadianconsumers.OnJanuary 29, 2020,the reviewpanel issued It isunclearwhichofthepanel’s remainingrecommendations,ifany, large TCCs,includingthoseintheBCEgroup, mustalsomeetcertain amendments tootherActs include (i) competition in the retail market; (ii) the current wholesale include (i)competition intheretailmarket;(ii) current wholesale imposed bytheCRTC.Itisanticipated thatadditionalreformtofully to amend the Broadcasting Act and to make related and consequential to amend the Broadcasting Act and to make relatedandconsequential to modernizetheActsbetteraddressnewrealitiesimpacting the framework developed in2015.Themainissuesthe CRTC’s consultation isto considerchangestothewirelessregulatory the proceeding the objectives of Canada’s telecommunications policy. In addition, a few telecommunications andwirelessbusinesses. that both foreign and domestic online broadcasting undertakings doing that bothforeignanddomesticonlinebroadcastingundertakingsdoing Broadcasting Act,the on our business and financial Broadcasting Act on our business and financial . Keyamongtheproposed amendmentsis Radiocommunication Actandthe BCE In c . 2020Annu a l R e po An Act An Act r t

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MD&A Regulatory environment MD&A Regulatory environment The implementationofCNOC’s proposal wouldunderminetheincentives As part ofitsongoing reviewofwholesaleInternetrates,onOctober 6, 2021. It is unclear what impact, if any, the results of this consultation ifany,theresultsofthisconsultation 2021. Itisunclearwhatimpact, 2016, the CRTC significantly reduced, on an interim basis, some of the reduced,onaninterim basis,someofthe 2016, theCRTCsignificantly ACCESS TO FTTP NETWORKS TO FTTP ACCESS MANDATED DISAGGREGATED WHOLESALE HIGH-SPEED ACCESS SERVICE RATES SERVICE HIGH-SPEED ACCESS FTTN WHOLESALE OF REVIEW SERVICES BROADBAND FTTP APPLICATIONCNOC’S ON RETAIL services would last until the CRTC completes its reviews of all current services wouldlastuntiltheCRTCcompletesitsreviewsofallcurrent services toInternetserviceproviders(ISPs),atamandateddiscount service. The final rates remain to be determined. On June 11, 2020, 2020, service. Thefinalratesremaintobedetermined.OnJune 11, facilities.Thefirststageofits speed accessservice,includingoverFTTP wholesale rates that Bell Canada and other major providers charge for wholesale mobile virtualnetworkoperator(MVNO)access;and(iii)the On January 8, 2021, Canadian Network Operators Consortium Inc. 2021, Canadian Network Operators Consortium Inc. On January 8, 2017,inTelecomOrderCRTC2017-312,theset On August 29, On July 22, 2015, in Telecom Regulatory Policy CRTC 2015-326, the CRTC providers toinvestinnext-generationwirelinenetworks,particularly past and,accordingly,itwouldputatriskourabilitytoinvestinnext- Bell Canada and other large providers to sell retail FTTP broadband broadband Bell CanadaandotherlargeproviderstosellretailFTTP (CNOC) filedanapplication withtheCRTCaskingforanordermandating held a public hearing in February 2020 and a decision is expected in andadecisionisexpectedin held apublichearinginFebruary 2020 generation networks. capacity tomakeinvestmentsatthesamelevelsaswehavein could haveonourbusinessandfinancialresults.However, adecision own brands. CNOC proposed that this mandated access to retail FTTP own brands.CNOCproposed thatthismandatedaccesstoretailFTTP off theretailprice.ISPswouldthenreselltheseservicesundertheir generation wirelinenetworks,particularly insmallercommunitiesand our financialresults. expressed thepreliminaryviewthatitwouldbeappropriate forthe undermines the incentives for facilities-based digital infrastructure by the CRTC mandating MVNO access would negativelyimpact our rural areas, as well as improve the business position of our competitors regulatory decision mayimpact the specific nature, magnitude, location mandated theintroductionofanewdisaggregatedwholesalehigh- national wireless carriers to provide wholesale MVNO access. The CRTC With respect to MVNOs, the CRTC barriers to infrastructure deployment. applicable. OnAugust 15, 2019,the CRTCfurtherreducedthewholesale orcable networks,as access bythird-party Internetresellers toFTTN and adverselyimpact ourfinancialresults. and near-termproceedingsrelatedtowholesalehigh-speedservices. notice. The mandating of final rates that are materially different from andsuspendedthefinalizationof access serviceitmandatedin 2015 investmentdecisions.Inparticular,and timingofourfutureFTTP the configuration fordisaggregatedwholesaleaccess in smallercommunitiesandruralareas. improve thebusinessposition ofourcompetitorsandadverselyimpact interim ratesforthenewdisaggregatedwholesalehigh-speedaccess implementation tookplaceonlyinOntarioandQu introduction by the CRTC of mandated wholesale services over FTTP introduction bytheCRTCofmandatedwholesaleservicesoverFTTP for facilities-baseddigitalinfrastructureproviderstoinvestinnext- the network configuration of the disaggregated wholesale high-speed the CRTClaunchedanewproceeding(referto future ofmobilewirelessservicesinCanada,withafocusonreducing the ratesweproposed couldfurtherimpact ourinvestmentstrategy, the interimratesandtermsoftariffthatweresetin 2017 untilfurther 100

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BCE In c . 2020Annu a l R e po r t below) to reconsider below)toreconsider Review of network Review ofnetwork é bec. This adverse bec. Thisadverse The Applicants and TELUS Communications Inc. also filed review and vary TELECOMMUNICATIONS SERVICES FOR WHOLESALE RATE SETTING APPROACH THE OF TOREVIEW FOR DISAGGREGATED ACCESS WHOLESALE CONFIGURATIONREVIEW OF NETWORK stay. TheApplicants’ requestforleavetoappeal thedecisionof significantly below those in the market today and/or the requirement belowthoseinthemarkettodayand/orrequirement significantly CRTC issued a stay of the Decision pending its final decision on the review CRTC issuedastayoftheDecisionpendingitsfinaldecisiononreview On April 24, 2020, the CRTClaunched a proceeding to reconsider the 2020,theCRTClaunchedaproceedingtoreconsider On June 11, position ofourcompetitors,furtherimpact ourinvestmentstrategy providers to investin next-generation wireline networks, improve pending. While it did not overturn the Decision, the Order in Council pending. WhileitdidnotoverturntheDecision,OrderinCouncil Federal CourtofAppeal totheSupremeCourtof Eastlink, Rogers, Shaw and Vidéotron) (together, the Applicants) obtained Bell Canadaandfivemajorcablecarriers(CogecoCommunications Inc., high-speed access service, which will remain at their current interim high-speed access service, which will remain at their current interim on February25,2021. on September 10, 2020 inwhichitrejectedtheappeal andliftedthe on September 10, 2020 decision fromtheCRTCregardingreviewandvary applications is otherwise modified.Inresponse tothisDecision,BellCanadareduced of theDecisioncouldbeinexcess$100 million, if not overturnedor current approach used by the CRTC to set rates for mandated wholesale current approach usedbytheCRTCtosetratesformandatedwholesale could undermine the incentives forfacilities-baseddigital infrastructure disaggregated wholesaleaccessand/orthemandatingoffinalrates discussed under of disaggregationforBellCanadathanhadbeenmandatedin 2015 as consultation aimstoadoptamodelapplicable towholesaleproviders and adverselyimpact ourfinancialresults. making afinalruling.TheFederalCourtofAppeal issuedadecision rates that Internet resellers pay toaccessnetworkinfrastructurebuiltby and reasonable areestablishedinanefficient manner. Thismay most appropriate methodologyforensuring that such rates arejust network configuration of the disaggregated wholesale high-speed adversely impact ourfinancialresults. also appealed the Decision to the Federal Cabinet. On August 19,also appealed the Decision to the Federal Cabinet. 2020, and vary applications. TheApplicants and applications of the Decision with the CRTC. On September 28, 2020, the across the country. It may also result in the adoption of a different level across the country.It may also result inthe adoption of a different level access servicemandatedofBellCanadaandlargecablecarriers.The inall also statedthat:“thefinalratessetbythedecisiondonot, above. The launch of this new consultation has suspended networks above.Thelaunchofthisnewconsultationhassuspended leave toappeal theDecisionfromFederalCourtofAppeal, and level until further notice. Revisions that facilitate reseller access to level untilfurthernotice.Revisionsthatfacilitatereselleraccess to instances, appropriately balance the objectives of the wholesale services instances, appropriately balancetheobjectivesofwholesaleservices to refundmoniesthird-party resellerscouldimprovethebusiness the Federal Court of Appeal granted astay ofthe Decision until towns andruralcommunitiesbyapproximately 200,000 households. the scopeofitsbroadbandwirelessInternetbuild-outplanforsmaller to March 2016 (theDecision).Theestimatedcostimpact toBellCanada facilities-based providerslikeBellCanada,withretroactiveeffectback telecommunications services. The proceeding aims to consider the telecommunications services.Theproceedingaims toconsiderthe the businessposition ofresellershigh-speedaccessservicesand the finalizationofratesBellCanada’s existingdisaggregated framework”. Theimplementationoffinalwholesaleratesthatare the FederalCabinetissuedanOrderinCouncilnotingthatafurther that aremateriallydifferentfromtheratesBellCanadahasproposed Mandated disaggregated wholesale access to FTTP Mandated disaggregated wholesale access toFTTP TELUS Communications Inc. Canada was denied Canada wasdenied Telecommunications Act. The 8.4 8.3 to ensure that radiocommunication in Canada is developed and Act toensurethatradiocommunicationinCanadaisdevelopedand Changes tothe 3800 MHzBand CRTC REVIEW OF ACCESS TO POLES ACCESS OF CRTC REVIEW 3500 MHZ AND OTHER3500 SPECTRUM ISED DECISION AND CONSULTATION ON Radiocommunication Regulations Broadcasting Actaretoprotectandstrengthenthecultural,political, Band toAccommodateFlexibleUseandPreliminaryDecisionson same ownershiprequirementsthatapply tocompanies underthe system inCanadamustholdaspectrumlicencetodoso. Underthe social andeconomicfabricofCanadatoencouragethedevelopment spectrum or more of fixeduse licences in a given area will be eligible work; whether all occupants of a pole shouldbe responsible for the On June 5, 2019,ISEDreleasedits 2020, the CRTC launched a proceeding to request On October 30, CRTC todetermineratesforregulatedwholesaleservices.Ifthecurrent proceeding, the CRTC specifically requested comments on whether prospective incremental costing methodology currently used by the usedbythe prospective incrementalcostingmethodologycurrently Phase IIcostingmethodologyisrevisedorreplaced,theimpact ofsuch Most broadcasting activities require a programming or broadcasting Most broadcastingactivitiesrequireaprogrammingor (which allows spectrum to be used for both fixed and mobile services) in (which allowsspectrumtobeused for bothfixedandmobileservices)in differs from the current ‘Phase II’ costing methodology. Phase II is a differs fromthecurrent‘PhaseII’costingmethodology.PhaseIIisa operated efficiently. Allcompanies wishingtooperateawireless operated efficiently. distribution licencefromtheCRTC.TheCRTCmayexemptbroadcasting of Canadianexpression. costs associatedwithpole maintenanceandmakereadywork;whether As part ofthis owned byTCCs,suchasBellCanada,more efficient. comments onpotential regulatorymeasurestomakeaccesspoles on ourbusinessandfinancialresults. or itmayresultinarate-settingprocessthatfavours resellersand changes mayresultinmoreefficientandtransparent ratesetting, undertakings from complying with certain licensing and regulatory undertakings fromcomplyingwithcertainlicensingandregulatory undermines incentives for facilities-based investment. At this time, it Atthistime,it undermines incentivesforfacilities-basedinvestment. a portion of their existing licences in return for a flexible use licence radio licences, such as Bell Canada and Bell Mobility, must meet the requirements ifitissatisfiedthatnon-compliancewillnotmaterially broadcasting policy and assigns theregulation and supervision of result in the adoption of a new costing approach that substantially affect theimplementationofCanadianbroadcastingpolicy. Acorporation ISED regulatestheuseofradiospectrumunder is unclear what impact, if any, the results of the proceeding could have ifany,theresultsofproceedingcouldhave is unclearwhatimpact, in this frequency range. ISED will require existing licensees to return in thisfrequencyrange.ISEDwill require existinglicenseestoreturn to apply for a new flexible use licence of 60 MHz in the related area; intherelatedarea; to apply foranewflexibleuselicence of60 MHz hold75 MHz of following theauction.Existinglicensees thatcurrently those with50 MHz ofspectrumwillbeeligible toapply for50 MHz; and the 3450–3650 MHz band.ThisallowsISEDtoissueflexible uselicences the broadcastingsystemtoCRTC.Keypolicy objectivesofthe there shouldbealimitontheamountoftimeforwhichpole owner there shouldbemaximumtimelimitsforthecompletionofmakeready Broadcasting Act adiocommunication Act roadcasting Act roadcasting B R outlines thebroadobjectivesofCanada’s outlines . ISED decided that it will allow flexible use . ISEDdecidedthatitwillallowflexible use Decision onRevisionstothe 3500 MHz , companies that are eligible for Radiocommunication 7 years ofthelicenceterm.Inaddition, licenseeswillneedtomeetgeneral TCCs couldresultinmoreforeigncompanies enteringtheCanadian The 50 MHz willbeavailable for auctionorallavailable spectruminareas As discussedunder FOREIGN OWNERSHIP RULES CANADA’S TELECOMMUNICATIONS 3500 MHZ SPECTRUM AUCTION SPECTRUM 3500 MHZ spectrum licences in the 3500 MHz band. ISED will set aside 50 MHz MHzband.ISEDwillsetaside50 MHz spectrum licencesinthe 3500 should take steps to improve access to electric utility pole, having regard should takestepstoimproveaccesselectricutilitypole, havingregard services. , there are no foreign investment Under theTelecommunicationsAct,therearenoforeigninvestment with a large population centre where less than 50 MHz isavailable. with alargepopulation centrewherelessthan50 MHz will notbetransferable toset-asideineligibleentities forthefirst5 to will beallowedtocontinueoperatingwheretheydonotpreventthe Canadian telecommunications market as measured by annual revenues. On March 5, 2020,ISEDreleasedits Our TV distribution operations and our TV and radio broadcasting policies anddecisionsoftheCRTCtheirrespectivebroadcasting processes couldhaveonourbusinessandfinancialresults. However, foreign investment in telecommunications companies can still on ourbusinessandfinancialresults. our pole accessproceduresandrequestedCRTCapproval forthe on thesizeofpopulation centreintheareawhichtheyoperate. deployment ofnewlicences.Iftheyarerequiredtotransition,will could negatively affect our competitive position or the costofproviding operations aresubjecttotherequirementsof effective controlofabroadcastinglicensee. corporations must have the CRTC’s approval before they can transfer can reservespare capacity onapole; andwhethertheCRTCcan of spectrum for regional service providers in all areas where at least of spectrumforregionalserviceproviders inallareaswhereatleast unclear what impact, if any, the results of the proceeding could have ifany,theresultsofproceedingcouldhave unclear whatimpact, be refusedbythegovernmentunder restrictions applicable toTCCsthathavelessthana10%shareofthetotal network coverage targets in each licence area at 5, 10 and 20 years 20 years network coverage targetsineachlicenceareaat 5, 10 and be subjecttoaprotectionperiodofsixmonthsthreeyears,depending regulations ortheadoptionofnewones,amendmentstolicences, must alsomeetcertainCanadianownershipand control requirements absence of foreign ownership restrictions on such small or new entrant absence offoreignownershiprestrictionsonsuchsmallornewentrant all otherlicenseeswillbeeligibletoapply for20 MHz. Existinglicensees market, includingbyacquiringspectrumlicencesorCanadianTCCs. market, It is unclearwhatimpact theresultsofthisdecisionandfuturerelated ISED launchedaconsultationtodeterminetheamountofspectrum licences. Anychangesinthe implementation of a one touch make ready process, starting with a implementation of aone touch make ready process,starting with a the currentregulatoryprocessforaccesstopoles. Atthistime,itis trial inQuébec.Thisproceedingmayresultothermodificationsto to the limit of its jurisdiction. We have implemented improvements to to obtain a broadcasting or broadcasting distribution licence, and to obtainabroadcastingordistributionlicence,and that would be assigned for flexible use in the 3700–4200 MHz band. band. that wouldbeassignedforflexibleuseinthe3700–4200 MHz for Spectrumin the 3500 MHz Band auctioned licences will have a 20-year term and set-aside licences auctioned licenceswillhavea20-year termandset-asidelicences ISED consultation on 3800 MHz spectrum ISED consultationon 3800 MHz Broadcasting Act , which will govern the auction of , whichwillgoverntheauctionof Policy andLicensingFramework BCE In Investment CanadaAct c . 2020Annu , the Broadcasting Act,the , amendmentsto a l R e po below, below, r t . The . The

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MD&A Regulatory environment MD&A Regulatory environment 8.6 8.5 Among other things, the Specifically, underthe Standing Committee on Canadian Heritage, led the process, which Standing CommitteeonCanadianHeritage,ledtheprocess,which ISED CONSULTATIONISED MHZ SPECTRUM ON 3800 FRAMEWORK FOR NORTHWESTEL REGULATORY CRTC’S THE OF REVIEW REVIEW ACT COPYRIGHT Frequency Allocationofthe3500–3650 MHz Band Policy Framework BandandChangestothe forthe3650–4200 MHz sale orotherdisposal ofBellCanadavoting sharesthatareheldby services from 3650–3700 MHz to 3900–3980 MHz. In addition, ISED In addition, ISED to 3900–3980 MHz. services from 3650–3700 MHz subject toadditionaldeploymentrequirementsbasedontheirexistingLTE voting sharesandBellCanadafacilitiesmaybesoldortransferred. On November 2, 2020, the CRTC launched a proceeding to review 2020,theCRTClaunchedaproceedingtoreview On November 2, 2017, the federal government passed a motion in On December 13, On August 27, 2020,ISEDreleaseda flexible useservice.ISEDisalsoproposing tomovewirelessbroadband proposing to clear fixed satellite services from the 3700–4000 MHz proposing toclearfixedsatelliteservicesfromthe3700–4000 MHz Each Committee made a series of recommendations in respect of the Each Committeemadeaseriesofrecommendationsinrespectthe Northwestel, including with respect to issues such as rates, wholesale Northwestel, includingwithrespect toissuessuchasrates,wholesale Parliament toformallylaunchareviewofthe BCE, unlessthesaleordisposal wouldresultinBCEretainingatleast of anypotential amendmentsonourbusinessandfinancialresultsis of Canadiancopyrightlaw.Atthistime,itisnotknownwhetherthese cap on licensees. Initially scheduled to begin on December 15, 2020, 2020, cap onlicensees.InitiallyscheduledtobeginDecember 15, of spectrumthatBellMobilitycanbidon,ISEDwillnotapply aspectrum coverage. Whiletheadoptionofset-asideprovisionslimitsamount unknown. may result in modifications to the current regulatory framework for may result in modifications to the current regulatory framework for reports willleadtoamendmentsthe rights of Canadian copyright holders andusersthe effectiveness andtheStandingCommitteeon released itsreport onMay 15, 2019 began inFebruary 2018. TheStandingCommitteeonCanadianHeritage review ismandatedbythe band) andtheamountofspectrumtobemadeavailable. ISEDis and mobile)inthe3650–4200 MHz band(referredtoasthe 3800 MHz bidding intheauctionhasbeenrescheduledtobeginonJune 15, 2021. Industry, Science and Technology, working in collaboration with the Industry, ScienceandTechnology,workingincollaborationwiththe ISED is seeking input on how to introduce flexible use services (i.e., fixed ISED is seeking input on how to introduce flexible use services (i.e., fixed Industry, ScienceandTechnologyreleaseditsreport onJune 3, 2019. legislation be examined every five years. The Standing Committee on legislation beexaminedeveryfiveyears.TheStandingCommitteeon frequency range (with some exceptions) by December 2023 to allow frequency range(withsomeexceptions)byDecember 2023 toallow telecommunications servicesin Canada’s North.Thisproceeding the regulatory framework for Northwestel and the state of following licenceissuance.LicenseeswithexistingLTE networkswillbe 102

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B Other c . 2020Annu a l R Bell CanadaAct e po Copyright Actitself, whichrequiresthatthe Bell Canada Act r t Consultation on the Technical and Consultation ontheTechnicaland , theCRTCmustapprove any Copyright Actandtheimpact limits how Bell Canada Copyright Act . In this consultation, . Inthisconsultation, . This 64-71 GHz band for licence-exempt operations on a no-interference, bandforlicence-exemptoperationsonano-interference, 64-71 GHz 80% ofalltheissuedandoutstandingvoting sharesofBellCanada. Spectrum toSupport 5G.Inthisdecision,ISEDannouncedthatspectrum WAVE 5G TO SUPPORT SPECTRUM MILLIMETRE RELEASING ON DECISION IMPLEMENTATION ACT,IMPLEMENTATION 2020 C-11:BILL DIGITAL THE CHARTER $10 million or3 per centofglobalrevenueandinsomecases,for serious specific rules through one or more future consultations. It is unclear specific rulesthroughone ormorefutureconsultations.Itis unclear which would encourage investment, or it may result in rate restrictions oritmayresultinraterestrictions which wouldencourageinvestment, what impact the results of this decision and future related processes On June 5, 2019,ISEDissuedits Canada, administrative monetary penalties amounting to the greater of Canada, administrativemonetarypenaltiesamountingtothegreater of Canada, the On November 17, 2020, the Minister of Innovation, Science and financial results. process. It is unclear what impact the results of this consultation and Personal InformationandDataProtectionTribunal the power toimpose, Personal Information and Data Protection Tribunal. The proposed Except intheordinarycourseofbusiness,saleorotherdisposal of coming into force date has yet been released but public statements by coming intoforcedatehasyetbeen releasedbutpublicstatementsby offences, thegreaterof$25 million or5 per centofglobalrevenue. No data mobility and anew private right of action forindividuals. The CPPA changes toCanada’s privacy regimeincludenewconsumerrightsto or additional wholesale obligations, which would undermine incentives could haveonourbusinessandfinancialresults. use to flexible use (i.e., mobile or fixed use). ISED will designate the use toflexible(i.e.,mobileorfixeduse).ISEDwilldesignatethe upon recommendationby the Office ofthePrivacy Commissioner of no-protection basis. ISED indicated that it will establish the details and no-protection basis. ISEDindicatedthatitwill establish the details and band forflexibleuseservicesthroughafutureISEDauctionlicensing may result in additional subsidies and rate flexibility for Northwestel, may resultinadditional subsidies andrate flexibility forNorthwestel, also receiveCRTCapproval. allocate flexibleusespectrumin3700–3900 MHz viaaprivate salein any, the results of the proceeding could have on our business and access andsubsidies.Modificationstothecurrentregulatoryframework If passed, theBillwillestablishanewprivate sectorprivacy lawin in the26 GHz, 28 GHz, and37-40 GHz bandswilltransitionfromsatellite is seeking comments on a proposal by Telesat Canada includes strong new enforcement tools that give the newly constituted includes strongnewenforcementtoolsthatgivethenewlyconstituted future relatedprocessescouldhaveonourbusinessandfinancialresults. the secondary market and to clear the 3900–4100 MHz portion of the the Ministerindicatethatitislikely tocomeintoeffectin2022. the tabled BillC-11,entitled if for investmentintheNorth.Atthistime,itisunclearwhatimpact, facilities integraltoBellCanada’s telecommunicationsactivitiesmust Consumer Privacy Protection Act Digital Charter Implementation Act, 2020 Digital CharterImplementationAct, Decision onReleasingMillimetreWave (CPPA) , andanew (Telesat) Industry Industry to to . 9 This sectiondescribestheprincipal businessrisksthatcouldhaveamaterialadverseeffectonourbusiness,financialcondition,liquidity, knowntous arenottheonlyonesthatcouldaffectus.Additionalrisksanduncertaintiescurrently The risksdescribedinthisMD&A The failure to transform our operations, enabling a truly customer- truly a enabling operations, our transform to failure The The otherprincipal businessrisksthatcouldalsohaveamaterialadverseeffectonourbusiness,financialcondition,liquidity,results A riskisthepossibility thataneventmighthappen inthefuturethatcouldhaveanegativeeffectonourbusiness,financialcondition, TECHNOLOGY/INFRASTRUCTURE TRANSFORMATION software technologies further provides the foundation for better and software technologiesfurtherprovidesthefoundationforbetterand world-class products and services at all points of interaction, while while interaction, of points all at services and products world-class we referthereadertothosesectionsforadiscussionofsuchrisks.Allriskdiscussionssetoutinredtable Globalization, increasedcompetitionandongoingtechnologicaladvances implied by, financial resultsorreputation,andcauseactualeventstodiffermateriallyfromourexpectationsexpressedin,impliedby, obstacles that might impact successfulexecution,and this transition open source software, artificial intelligence and machine learning. They open sourcesoftware, artificialintelligenceandmachine learning.They combinedwiththecomplexityofournetworkandIT environment, The availability of improved networks and development environment. or reputationarediscussedbelow. centric service experience across a constantly evolving profile of of profile evolving constantly a across experience service centric or that we currently deem to be immaterial may also materially and adversely affect our business, financial condition, liquidity, financial deemtobeimmaterialmayalsomateriallyandadverselyaffectourbusiness,financialcondition,liquidity, or thatwecurrently user experiences and cost-effective delivery. Meeting these expectations user experiencesandcost-effectivedelivery.Meetingtheseexpectations our forward-lookingstatements. an environment of changing business models, could have an adverse an environment of changing business models, could have an adverse as wellevolving anddevelopingtechnologies,includingnetwork requires the deployment of new service and product technologies that requires thedeploymentofnewserviceandproducttechnologiesthat also seek to transform our network and systems through consolidation, also seek totransform our network andsystemsthroughconsolidation, are network-neutralandbasedonamorecollaborativeintegrated are driving customer expectations of faster market responses, enhanced results orreputation. below, aswelltheriskdiscussionrelatingtoCOVID-19pandemic andgeneraleconomicconditionssetoutinSection3.2,Principal business and financial results financial and business IoT applications. Changecanbedifficultandmaypresentunforeseen In particular, ournetworkandITevolution activities seektousenew impact onourbusinessandfinancialresults. infrastructure. Thefailuretoaccuratelyassessthepotential ofnew is mademorechallengingbythecomplexityofourmulti-product lowering our cost structure, could have an adverse impact on our our on impact adverse an have could structure, cost our lowering liquidity, financial results or reputation. The actual effect of any event could be materially different from what we currently anticipate. liquidity, financialresultsorreputation.Theactualeffectofanyeventcouldbemateriallydifferentfromwhatwecurrently faster connections, which have in turn led to a significant growth in faster connections,whichhaveinturnledtoasignificantgrowth in technologies, ortoinvestandevolve intheappropriate directionin functions virtualization, software-defined networks, cloud technologies, business risks, SECTIONS OFTHISMD&A RISKS DISCUSSEDINOTHER Security management Competitive environment Bell WirelineandMediasegments Risks specificallyrelatingtoourBellWireless, Regulatory environment usiness risks usiness B areincorporated byreferenceinthissection9. Certain

of these principal business risks have already been discussed in other sections of this MD&A, and and of theseprincipal businessriskshave already beendiscussedinothersectionsofthisMD&A,

SECTION REFERENCES Section 5, Section 3. Section 8, Section 3. Section 5, Section 3. for each segment) 2 2 2 Business segmentanalysis Business segmentanalysis Regulatory environment , , , Principal businessrisks Principal businessrisks Principal businessrisks savings and flexibility in delivery and consumption, leading to negative savings andflexibilityindelivery and consumption,leadingtonegative virtualization and automation to achieve our objectives of becoming virtualization andautomationtoachieveourobjectivesofbecoming while maintainingnetworkavailability andperformance throughthe while loweringourcoststructure,couldhinderabilitytocompeteon profile ofworld-classproductsandservicesatall points ofinteraction, performance, which could adversely affect our ability to achieve our performance, whichcouldadverselyaffectourabilitytoachieve comprehensive self-serve convenience, real-time provisioning, cost comprehensive self-serveconvenience, real-timeprovisioning,cost could inhibitafullycustomer-centric approach, limiting orpreventing operational andfinancialobjectives. Failure tomaximizeadaptable critical toensureappropriate trade-offs andoptimizationofcapital Alignment evolution activitiesrequireanoperationalandculturalshift. enables acompetitivecoststructureandrapidlygrowingcapacity. These customer experience,anddevelopinganewnetworkinfrastructurethat omni-channel capabilities forourcustomers,ensuringbestquality and business andfinancial outcomes. more agileinourservice delivery andoperations respond toevolving customerpatterns andbehaviours leverage allocation. Failure to transform our operations fast enough, enabling a across technology,productdevelopmentandoperationsisincreasingly migration process, we may lose customers as a result of poor service If this cannot be achieved in accordance with our deployment schedules If thiscannotbeachievedinaccordancewithourdeploymentschedules IP acrossallfacetsofournetwork andproductserviceportfolio infrastructures, processes and technologies to quickly and efficiently infrastructures, processesandtechnologies toquicklyandefficiently impact onourbusinessandfinancialresults. footprint, serviceexperienceandcoststructure footprint, evolving truly customer-centricserviceexperienceacrossaconstantly ( ( Principal businessrisks Competitive landscapeandindustrytrends sectionforeachsegment) BCE In c . 2020Annu , and have an adverse andhaveanadverse , as well as providing aswellproviding section section a l R e po r t

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MD&A Business risks MD&A Business risks • • • • As the bar continues to be raised based on customers’ evolving CUSTOMER EXPERIENCE CUSTOMER Other examplesofrisksaffectingtheachievementourdesired CRTC or of FTTP, mandated wholesale services over FTTN the potential platforms, billing systems, sales channels, marketing databases and a platforms, billingsystems,saleschannels,marketingdatabasesand a However, complexity inouroperationsresultingfrommultipletechnology adverseregulatory Parallel toourfocusonnext-generationinvestment, Driving a positive customer experience in all aspects of our our of aspects all in experience customer positive a Driving customer complaints could also erode our brand and reputation and customer complaintscouldalsoerode ourbrandandreputation customer satisfaction,acquisitionand retention.Thesechallengesmay confusion orbilling,serviceother errors,whichcouldadverselyaffect quickly tomarketchangesandreduce costs,andmayleadtocustomer of alargecustomerbaseand customers inanexpeditiousmannerandonmutuallyagreeableterms. expectations andbuildamorerobustconsistentserviceexperience expectations ofserviceandvalue, failure togetaheadofsuch of wholesaleobligationsonwirelessnetworkswillunderminethe decisions may impact the specific nature, magnitude, location and engagement with customers is important to avoid brand degradation degradation brand avoid to important is customers with engagement be exacerbated as services become more complex. Media attention to be exacerbatedasservicesbecome morecomplex.Mediaattentionto myriad ofrateplans,promotionsandproductofferings,inthecontext business andfinancialresults. manner couldlimitourabilitytocompeteeffectivelyandachievedesired and customer loyalty. The foundation of effective customer service stems and customerloyalty.Thefoundationofeffectiveservicestems at a fair value proposition could hinder product and service differentiation adversely affect customer acquisitionandretention. and other adverse impacts on our business and financial performance financial and business our on impacts adverse other and investment in next-generation capabilities in a disciplined and strategic in next-generationwirelineandwirelessnetworks.Failure tocontinue incentives forfacilities-baseddigitalinfrastructureproviderstoinvest to be trained, monitored and replaced,maylimit our ability to respond from ourabilitytodeliverhigh-quality,consistentandsimplesolutions to technology/infrastructure transformationincludethefollowing: for additional mandated access to our networks or the imposition timing ofinvestmentdecisions.Inparticular, theloweringofratesby 104

The COVID-19 pandemic maybringaboutfurtherincrementalcosts, Suboptimal capital deployment in network build, infrastructure and Suboptimal capitaldeploymentinnetworkbuild,infrastructureand services, must be able to purchase high-quality network equipment services, mustbeabletopurchasehigh-qualitynetworkequipment which couldincreasethecostof, andcausedelaysin,FTTP, WTTP process upgrade, and customer service improvement property requirestheissuanceofmunicipal orpropertyowner We, and other telecommunications carriers we rely on to provide We, andothertelecommunicationscarrierswerelyontoprovide Network constructionanddeploymentonmunicipal orprivate other restrictions,allofwhichmayimpact ourabilitytoexpand our our abilitytocompeteeffectively consents, respectively,fortheinstallationofnetworkequipment, customer premises,aswellunavailability ofouremployeesor delays, unavailability ofequipmentandmaterialsorinabilitytoaccess network deploymentprojectsandother planned advance orcompletebothcurrently networks ortostart, reasonable cost (refer to and wirelessrollouts and servicesfromthird-party suppliers onatimelybasisandat illness, quarantines, absenteeism, workforce reduction initiatives or illness, quarantines,absenteeism,workforcereductioninitiativesor for moredetails) those of our suppliers or contractors, due to government actions,

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BCE In c . 2020Annu a l R e po Dependence on third-party suppliers r t workforce that continuously requires workforce thatcontinuouslyrequires s , could hinder , could hinder below below • • • • • • • This could continue during the COVID-19 pandemic andthereafter,This couldcontinueduringtheCOVID-19 pandemic COVID-19 pandemic amid store closures and reduced store traffic amidstoreclosuresandreducedtraffic COVID-19 pandemic predict whethersuchservicesandtoolswillbesufficienttomeet With theproliferationofconnectivityservices,apps anddevices, customer expectations.Theshifttoonlinetransactionsduringthe customers areaccustomedtodoingthingswhen,howandwhere results, reputationandbrandvalue. maintained. Failure to develop true omni-channel capabilities and new servicesandtools,includingself-managedsolutions,designed and potentially are worseniftemporary closuresofourretailoutlets adversely impacted ourabilitytoleverageextensiveretail network and socialmediaforums.Thesecustomerdemandshaveintensified improve self-serve tools could adversely affect our business, financial improve self-servetoolscouldadversely affectourbusiness,financial and,whileweintroduced in response totheCOVID-19 pandemic to increase the number of subscribers and sell our products and services. to accelerateourcustomerexperienceevolution, weareunableto call centres they want through websites, self-serve options, web chat,

The increasingdependenceonapps forcontentdelivery,sales, and5Gmobileservicescould The successfuldeploymentofWTTP As contentconsumptionhabitsevolve andviewingoptionsincrease, Successfully managing the development and deployment which issubjecttomanychallengesincludingevolving customer perceptions as well as legal and regulatory developments. If we cannot product solutions processes integratedintoongoingoperations We mustbeabletotakeadvantage ofnewopportunities, inorderto New products,servicesorapps couldreducedemandforourexisting, Higher demandforfasterInternetspeedandcapacity, coupledwith our ability to develop alternative delivery vehicles in order to seek our abilitytodevelopalternativedeliveryvehiclesinorderseek of rollout governmental policies andinitiatives,createstensionsaroundFTTP development andnetworkinvestmentrequired expense decline, andcouldresultinshorterestimatedusefullivesforexisting customer engagementandserviceexperiencedrivestheneedfor more profitable service offerings or cause prices for those services to be impacted byvarious factors,includingenvironmental factors, build market-leading competencies in this field across sales, service build market-leadingcompetenciesinthisfieldacrosssales,service and WTTP deploymentintermsofgeographicpreferenceandpace and WTTP and revenue streams may be hindered by the significant software and revenuestreamsmaybehinderedbythesignificantsoftware affecting coverageandcosts more proactivecustomerservicemodel. and regulatoryrequirements,wemaymissimportant opportunities and operational platforms that respect societal values and may notbeavailable, aswelltheneedforassociatedoperating new andscarcecapabilities (sourcedinternallyorexternally),which meet our business objectives, such as those introduced by “big data” meet ourbusinessobjectives,suchasthoseintroducedby“bigdata” IoT intheareasofretail,businessandgovernmentcouldbechallenging to competeinnewmarketsandincreasecustomerengagement technologies, whichcouldincreasedepreciationandamortization to grow our business through enhanced market intelligence and a to growourbusinessthroughenhancedmarketintelligenceanda on a timely basis to match the speed of adoption of on atimelybasistomatchthespeedofadoption of relevant meet legal legal • Although, asaresultofvarious stepswehavetakenaimedatmaintaining Stay-at-home and work-from-home measures implemented by OPERATIONAL PERFORMANCE OPERATIONAL subscriber acquisition and retention as well as our financial results. subscriber acquisitionandretentionaswellourfinancialresults. services, wewillneedtomanagethepossibility ofsomeinstability Understanding the customer relationship as a whole in a multi-product Understanding thecustomerrelationshipasawholeinmulti-product COVID-19 pandemic andbeyond. high-quality of foundation Our abilitytoprovideconsistentwireless,wirelineandmediaservices the are systems IT and networks Our provisioning, networking, distribution, broadcast management, billing billing provisioning, networking,distribution,broadcastmanagement, provide additionalcapacity andreducenetwork congestion duringthe price is increasingly central toan evolving competitive dynamic.Failure We may also need to incur significant capital expenditures in order to We mayalsoneedtoincursignificantcapitalexpendituresinorder Further examples of risks tooperational performance that could impact our reputation, business operations and financial performance include our reputation, business operations and financial performanceinclude depending onthelocation.Networkfailuresandslowdownscouldhave certain areas of our wireless, wireline and broadcast media networks. have governments andbusinessesduringtheCOVID-19 pandemic during thetransition. our agingnetworkscouldhaveanadverseimpact onourbusiness consistency andtrafficmanagementonourmorecurrentaswell changingoperatingenvironment customers inacomplexandconstantly environment anddeliveringasimple,seamlessexperienceatfair unprecedented rates.Unexpectedcapacity pressures onournetworks consistent services, which are critical to meeting service expectations service meeting to critical are which services, consistent and services.Thishascreatedunprecedentedcapacity pressureon by aneffectivegovernanceandoperatingframework, thismaylead newer technologies, may negativelyaffectournetworkperformanceandability and accounting, which may hinder our operational efficiency. If we fail and accounting,whichmayhinderouroperationalefficiency.Ifwe fail an adverseeffectonourbrandandreputationadverselyaffect adequately sustained such increasedusage,therecan benoassurance and financialperformance. Furthermore, aswetransitiontowards applications onourwirelineandwirelessnetworkshavebeengrowingat In addition, we currently use a very large number of interconnected useaverylargenumberofinterconnected In addition,wecurrently internal andthird-party operationalandbusinesssupport systemsfor impacted thenatureofourcustomers’usenetworks,products is crucialforsustainedsuccess.Inparticular, networkcapacity demands in thecountryandnetworkperformanceand/orreliabilitymayvary the following: maintainormanagehighlyeffectiveITsystemssupported to implement, that thiswillcontinuetobethecase.Homeofficescananywhere the continuity ofessential services, ournetworks have, in general, to provideservices.Issuesrelatingnetworkavailability, speed, for TV and other content offerings and other bandwidth-intensive to improve our customer experience by digitizing and developing a time couldresultinhigherchurn. to inconsistentperformanceanddissatisfied customers,whichover

The COVID-19 pandemic maybringaboutfurtherincrementalcosts, workforce reductioninitiativesor otherrestrictions,whichmay due togovernmentactions,illness, quarantines,absenteeism, delays or unavailability of equipment and materials as well as unavailability ofouremployeesorthosesuppliers orcontractors, at-home and work-at-home measures and to provide the desired at-home and work-at-home measures andto provide thedesired accommodate substantially increasednetworkusage duetostay- levels ofcustomer service impact ourabilitytomaintainorupgrade ournetworksinorderto including software-defined networks and cloud includingsoftware-definednetworksandcloud • • • • strategies. security attacks, unauthorized access or entry, fire, natural disasters Our operations and business continuity depend on how well we we well how on depend continuity business and operations Our Our operations, service performance, reputation and business continuity Our operations,serviceperformance,reputationandbusinesscontinuity providers, as well as other telecommunications carriers on which we providers, aswellothertelecommunicationscarriersonwhichwe protect, test, maintain, replace and upgrade our networks, IT systems, systems, IT networks, our upgrade and replace maintain, test, protect, (including, withoutlimitation,seismicandsevereweather-related heat waves, hurricanes, tornadoes and tsunamis), power loss, building (including through disruptions such as network failures, billing errors (including throughdisruptionssuchasnetworkfailures,billingerrors consistent, fast and on-demand end-to-end experience before, during consistent, costs, delaysorunavailability ofequipmentandmaterialsaswell effect onourbusinessandfinancialperformance,orimpair ourability or delays in customer service), require significant resources and result complete planned and sufficient testing, maintenance, replacement or could heightentheoccurrenceofabove-mentionedenvironmental climate change,especiallyinareasofgreaterenvironmentalsensitivity, of neighboursandotherevents.Asdiscussedinmoredetail cooling loss,actsofwarorterrorism,sabotage,vandalism, actions events suchasice,snowandwindstorms,wildfires,flooding,extended other infrastructureandfacilities,fromeventssuchasinformation depend onhowwellweandourcontractedproductservice unavailability ofouremployeesorthosesuppliers orcontractors, upgrade ofourortheirnetworks,equipmentandotherfacilities,whichis, equipment and other facilities other and equipment rely to provide services, protect networks and IT systems, as well as machine learning,inparallel toournetworkevolution, couldalsoadversely risks. Establishingresponse strategiesandbusinesscontinuityprotocols affect our business, financial results, reputation and brand value. and aftersalesusingnewtechnologiessuchasartificialintelligence all ofwhichcouldimpact our operationsandbusinesscontinuity and services from third-party suppliers, could disrupt our operations among others,dependentonourortheirabilitytopurchaseequipment environmental concernscouldhaveanadverseeffectonourbusiness In addition,theCOVID-19 pandemic maybringaboutfurtherincremental in significant remediation costs, which in turn could have an adverse in significantremediationcosts,whichturncouldhaveanadverse is criticaltotheachievementofeffectivecustomerservice.Any of in to keepexistingsubscribersorattract newones. telecommunications carriersonwhichwerelytoprovideservices, to the above-mentionedevents,aswellfailurebyus,orother to maintainserviceconsistencyifanydisruptiveeventmaterializes

There may be a lack of competent and cost-effective resources to There maybealackofcompetentandcost-effectiveresources to Corporate restructurings,systemreplacementsandupgrades, process perform thelifecyclemanagementandupgrades necessaryto maintain proactively improve operating performance, this could adversely We may experience more service interruptions or outages due to We mayexperiencemoreserviceinterruptionsoroutagesdueto our ongoingoperations may notdeliverthebenefitscontemplatedandcouldadverselyimpact redesigns, staffreductionsandtheintegrationofbusinessacquisitions available orlegacyvendoroperationshaveceased. aging legacyinfrastructure.Insomecases,vendorsupport isnolonger affect ourbusinessandfinancialresults If wefailtostreamlineoursignificantITlegacysystem portfolio and the operationalstatusoflegacynetworksandITsystems Environmental and health concerns – Climate change and other Environmental andhealthconcerns–Climatechangeother BCE In c . 2020Annu a l R e po r below below t

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MD&A Business risks MD&A Business risks The COVID-19 pandemic introducednew,andamplifiedexisting,people- Telesat operates or directs the operation of these satellites, which utilize Satellites used to provide our satellite TV services are subject to to subject are services TV satellite our provide to used Satellites PEOPLE DEPENDENCE SUPPLIERS THIRD-PARTY ON sanitation and safety procedures and equipping our teams with required service, bothofwhicharecriticaltoachievingourbusinessobjectives. space andarethereforesubjecttosignificantoperationalriskswhilein We depend on third-party suppliers, outsourcers and consultants, consultants, and outsourcers suppliers, third-party on depend We who must be able to operate efficiently and safely based on the tasks andsafelybasedonthetasks who mustbeabletooperateefficiently work arrangements, reallocated impacted employees to different winning culture,wewilllikelynotbeabletosustainourperformance. services, as well as comply with various obligations various with comply as well as services, some of which are critical, to provide an uninterrupted supply of of supply uninterrupted an provide to critical, are which of some COVID-19 pandemic a is there and Our businessdependsontheefforts,engagementandexpertiseof resources key are contractors and employees Our on effect adverse an have could that risks operational significant personal protective equipment and additional tools, accelerated remote personal protectiveequipmentandadditionaltools,acceleratedremote prioritized thehealthandsafetyofourteambyimplementingstrict performing candidatesfor a broad range ofjob functions, roles and Failure to achieve these basic expectations could adverselyaffect our Pursuant to a set ofcommercialarrangements between ExpressVu highly complex technology and operate in the harsh environment of highly complex technology and operate in the harsh environmentof enhanced access to workplace mentalhealth services. However, we replaceretiringemployees,couldhaveanadverse or toefficiently deploy employeesoninitiativesthatfurtherourstrategicimperatives, organizational culture,reputation,businessandfinancialresults,aswell Theserisksincludein-orbitequipmentfailures,malfunctionsand orbit. our management and non-management employees and contractors, our managementandnon-managementemployeescontractors, our business and financial performance financial and business our and Telesat, we currently have satellites under contract with Telesat. havesatellitesundercontractwithTelesat. wecurrently and Telesat, related risks.From thebeginningof match theoperationalrequirementsofbusinessandfostera responsibilities. Failure toappropriately train,motivate, remunerateor agreements that deliver competitive labour conditions and uninterrupted agreements thatdelivercompetitivelabourconditionsanduninterrupted across theorganization.Thepositive engagementofmembersour as ourabilitytoattracthigh-performingteammembers.Competition must nonethelessmanagehealthandsafetyconcernsrelatedto new network and other technologies other and network new effectively managed be must that risks of range complex and broad In addition, if the skill sets, diversity and size of the workforce do not In addition,iftheskillsets,diversityandsizeofworkforcedonot impacted bytemporary closuresorworkloadreduction,andprovided impact onour abilitytoattractandretaintalentdriveperformance to the challenges brought about by remote work arrangements. A further to thechallengesbroughtaboutbyremoteworkarrangements.Afurther functions wherepossible, ensuredwagesupport foremployees team representedbyunionsiscontingentonnegotiatingcollective to adequately compete for talent and to identify and secure high- the developmentofacomprehensivehumanresourcesstrategy for highlyskilledteammembersisintense,whichmakesessential they arecompleting and the environmentinwhich they are functioning. to drive a winning corporate culture and outstanding performance outstanding and culture corporate winning a drive to the products and services we need to operate our business, deploy deploy business, our operate to need we services and products the 106

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BCE In c . 2020Annu in relation to our regular daily activities, in addition in relationtoourregulardailyactivities,addition a l R e po r t , and offer new products and and products new offer and COVID-19 pandemic, we the the • • • • • TV services. Acts of war or terrorism, magnetic, electrostatic or solar TV services.Actsofwarorterrorism,magnetic,electrostaticsolar Any loss, failure, manufacturing defect, damage or destruction of these damageordestructionofthese Any loss,failure,manufacturingdefect, satellite TVservice. satellites, of our terrestrial broadcasting infrastructure or of Telesat’s storms, orspace debrisormeteoroidscouldalsodamagesuchsatellites. selection, governance and oversight processes established to seek to selection, governanceandoversight processes established to seek work arrangementscouldfurtherimpact productivityandwork-life Other examplesofpeople-relatedrisksincludethefollowing: We dependonkeythird-party suppliers andoutsourcers,overwhichwe Potential socialormentalfatiguefromadjustingtoprolongedremote have an adverse effect on our business and financial performance have anadverseeffectonourbusinessandfinancialperformance have no operational or financial control, for products and services, some have nooperationalorfinancialcontrol, forproductsandservices,some continuity plans, impair our ability to engage and motivate employees, extended periodofremoteworkarrangementscouldstrainourbusiness other problems, commonly referred to as anomalies, that could reduce ensure fullrisktransparency atpoint ofpurchaseandthroughout the of whicharecriticaltoouroperations. Iftherearegapsinourvendor management ofourbusinessandonfinancialresults. new servicesormakerepairs oncustomerpremises.Anyprolonged negatively affectourabilitytosellproductsandservices,install balance. Inaddition,labourdisruptionsandshortageswouldalso relationship, including any contract renegotiations, there is the potential and could result in customers terminating their subscriptions to our and couldresultincustomersterminatingtheirsubscriptionstoour and introduceadditionaloperationalrisksorexacerbateourexposure illness of our senior executives could have an adverse effect on the illness ofourseniorexecutivescouldhaveanadverseeffectonthe impact ourabilitytodevelopandlaunchnewproductsservices to existingones,whichcouldimpair ourabilitytomanagebusiness. tracking, telemetryandcontrolfacilitiestooperatethesatellitescould the commercialusefulnessofasatelliteusedtoprovideour

The increasing technical and operational complexity of our businesses The increasingtechnical and operational complexity of our businesses staff reductions, ongoing cost reductions or reorganizations could staff reductions,ongoingcostreductionsorreorganizationscould vehicles, foreign news bureaus and war zones, and/or in times of vehicles, foreignnewsbureausandwarzones,and/orintimesof pandemic, requires focus, effective processes and flexibility to avoid preparation ofinternaltalentandidentification potential external Deterioration in employee morale and engagement resulting from Deterioration inemployeemoraleandengagementresultingfrom Ensuring thesafetyofourworkforceoperatingindifferent During thebargainingprocesstheremaybeprojectdelaysandwork Renewal ofcollectiveagreementscouldresultinhigherlabourcosts Failure toestablishacompleteandeffectivesuccessionplan,including candidates, where relevant, forkeyroles,couldimpair candidates, whererelevant, ourbusiness environments, including manholes, telephone poles, cell towers, disruptions, includingworkstoppages orworkslowdowns,whichcould developing suchskilledresources until qualifiedreplacementsarefound adversely affectourbusinessandfinancialresults relationships andfinancialperformance. adversely affectservicetoourcustomersand,inturn,customer and bechallenginginthecontextofadecliningworkloaddueto areas create a challenging environment for hiring, retaining and and thehighdemandinmarketforskilledresourcesstrategic injury, illness,serviceinterruption,finesandreputationalimpact transformation, amaturingfootprintandimprovedefficiencies. • • • The outsourcingofservicesgenerallyinvolves transferofrisk, andwe supplier or outsourcer, this would decrease the number of available suppliers includethefollowing: suppliers or outsourcers and could result in increased costs, as well as service customersandachieveourbusinessfinancialobjectives. Other examplesofrisksassociatedwithourdependenceonthird-party performed in a proper or timely fashion could result in an adverse effect performed inaproperortimelyfashioncouldresultanadverseeffect professional consultingservicesprovidedbythirdparties thatarenot parties maynotbereasonablyevidentuntiltheirworkisdeliveredor We mayhavetoselectdifferentthird-party suppliers ofequipmentand delayed. Difficulties in implementing remedial strategies in respect of delayed. Difficultiesinimplementingremedialstrategiesrespectof on our ability to comply with various obligations, including applicable consulting servicesprovidedbythirdparties, andafailureofsuchthird evolving internalcompany policies andguidelinesaswellregulatory other productsandservices,aswelloutsourcers,inordertomeet geopolitical environmentsandcultures, aswellthepotential for due tothe risks ofoperating inforeignjurisdictions withdifferent laws, countries, which increases the potential for a breakdown in supply of ourthird-party suppliers andoutsourcersarelocatedinforeign of ourvendorbase,increasedcostsandmissedopportunities. Some associated riskexposures. management practices must also continueto evolve to fully address based supplier modelscontinue toevolve, ourprocurementandvendor maintain continuityofsupply andbrandstrength.Further, ascloud- must takeappropriate stepstoensurethattheoutsourcers’approach authority orotherwise,toterminateourrelationshipwithanexisting requirements. Shouldwedecide,orberequiredbyagovernmental and services;adverselyaffectourbusinessfinancialresults. In addition,certaincompany initiatives relyheavilyonprofessional In addition,anysuchgapscouldresultinsuboptimalmanagement localized naturaldisasters. legal andaccountingrequirements. to risk management is aligned with our own standards in order to to riskmanagementisalignedwithourownstandardsinorder to deploy new network and other technologies and offer new products service,qualityorcontinuityissues;delayourability transitional, support, for abreakdown insupply, whichcouldimpact our abilitytomakesales,

The consequences of the COVID-19 pandemic could adversely impact The insolvencyofoneormoreoursuppliers couldcauseabreakdown service. Although we have trained certain of our employees to perform service. Althoughwehavetrainedcertain ofouremployeestoperform well as unavailability of our suppliers and contractors’ employees, due financial results We relyupon thesuccessful implementationandexecutionof of theCOVID-19 pandemic andoursuppliers orvendorsexperience our ability to make sales or service customers, as well as on our our abilitytomakesalesorservice customers,aswellonour materialsandproducts,as costs, delaysorunavailability ofequipment, downturn and/orliquidityissuesaffectingoursuppliers. Incremental event offurthereconomic chain disruptionswouldbeincreasedinthe disruptions operational failures,suchfailurescouldresultinsupply chain reduction initiatives or other restrictions, could further adversely reduction initiativesorotherrestrictions,couldfurtheradversely business continuityplansbyourproductandservicesuppliers. To affect ourbusiness. in supply andhaveanadverseeffecton our operations,including the operations of our call centres and, consequently, our customer ourcustomer the operationsofourcallcentres and,consequently, to governmentactions,illness,quarantines,absenteeism,workforce the extentthatsuchplansdonotsuccessfullymitigateimpacts that could adversely affect our business. Such risk of supply could adverselyaffectourbusiness.Suchriskofsupply • • • • • • •

Any of these events could adversely impact our ability to meet customer Any oftheseeventscouldadverselyimpact ourabilitytomeetcustomer same levelofknowledgeorefficiencyasthoseinourcallcentres.Also, security issues including, but not limited to, latent security issues that would notbeapparent upon aninspection.Shouldweorasupplier Cloud-based solutions may increase the risk of security and data Cloud-based solutions may increase the risk of security and data products andservices,sincesuppliers maychoosetofavour global primary financialresponsibility for, arecallofitsproducts,our product defects(includingsafetyincidents)anddevelopappropriate We rely on other telecommunications carriers from time to time to We relyonothertelecommunicationscarriersfromtimeto Failure tomaintainstrongdisciplinearoundvendoradministration Demand forproductsandservicesavailable fromonlyalimitednumber BCE dependsoncallcentreandtechnicalsupport servicesprovided Products (includingsoftware)andservicessupplied to us maycontain (especially aroundinitialaccountsetup)maymaskpotential financial have hadtomovetheirresourcesworkfromhome.Werelyupon competitors that are larger than we are and, accordingly, purchase competitors thatarelargerthanweand,accordingly,purchase extent thatasupplier doesnotactivelyparticipate in,and/orbear our suppliers toensurethatsuchemployeescomplywithsecurity customers, andourabilitytoaddress technicalissues. commitments anddemand. decreased quantitiesoratotallackofsupply ofproductsorservices. decreased availability, increased costs or delays in the delivery of such mayleadto of suppliers, someofwhichdominatetheir globalmarket, customer servicefunctions,therecanbenoassurancethatasufficient deliver services. Should these carriers fail to roll out new networks or deliver services.Shouldthesecarriersfailtorolloutnewnetworksor or operationalrisksandcomplicatefutureproblemresolutions number of employees have been trained or that they are acquiring the number ofemployeeshavebeentrainedorthattheyareacquiringthe by anumberofexternalsuppliers andoutsourcers,someofwhichare by operational failures or service interruptions, such issues could remedial strategies,whichmayincludearecallofproducts.To the negatively impacted. Weworkwithoursuppliers toidentifyserious regulations andstandards(includingproductsafetypractices),our manufacturing defectsordonotcomplywithapplicable government requirements whileworkingfromaremotelocation. are bypassed a largervolume ofproductsandservices.Inaddition,production as a result of COVID-19 restrictions, manyofourcallcentre operators business, reputation, the quality and speed of services provided to business, reputation,thequalityand speedofservicesprovidedto are notmanagedappropriately mayhaveanadverseimpact onour and internalBCEinformationnecessary forthesupport servicesthat business, financialresultsandreputation. haveanadverseeffectonour networks andcould,consequently, adversely affectourabilitytoprovideservicesusingsuchcarriers’ and financialresults. referred toabovecouldhaveanadverseeffectonouroperations ability toperformsuchrecallprogramsatareasonablecostand/or ability tosellproductsandprovideservicesonatimelybasismaybe adverse effectonourbusiness,financialresultsandreputation. If productsandservicesimportant toouroperationshave leakage exposure ifsecuritycontrolprotocolsaffectingoursuppliers located in foreign countries. These vendors have access to customer located inforeigncountries.Thesevendorshaveaccesstocustomer issues affectinganysuchsuppliers, orothersuppliers, couldresultin in atimelyfashionmaybenegativelyimpacted. Anyoftheevents they provide. Information access and service delivery issues that they provide.Informationaccess andservicedeliveryissuesthat fail toupgrade existingnetworks,orshouldtheirnetworksbeaffected fail to correct a security issue in a timely fashion, there could be an fail tocorrectasecurityissueintimelyfashion, there couldbean BCE In c . 2020Annu a l R e po r t

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MD&A Business risks MD&A Business risks FINANCIAL MANAGEMENT FINANCIAL senior executives and other key employees, make strategic acquisitions senior executives andotherkeyemployees,makestrategic acquisitions significant volatility andweaknessasaresultoftheCOVID-19 pandemic. sources ofcapitalandonourabilitytogeneratecashflowsfrom whether and for how long such interventions will continue. Economic whether andforhowlongsuchinterventionswillcontinue.Economic Governments and central banks have reacted with significant monetary Governments andcentralbankshavereactedwithsignificantmonetary Global financial markets have experienced, and could again experience, Our bank credit facilities, including credit facilities supporting our Our ability to raise financing depends on our ability to access the public Our abilitytomeetourcashrequirements,fundcapitalexpenditures financial marketinstabilityinCanadaorabroad,government policies, published expectations of financial analysts, as well as events affecting published expectationsoffinancial analysts, aswellevents affecting While it is our intention to renew certain of such credit facilities from time While itisourintentiontorenewcertainofsuchcreditfacilitiesfromtime BCE’s securities.Amajordeclineinthecapital marketsingeneral,oran Differences betweenBCE’s actualoranticipated financial resultsandthe Risk factorssuchas capital market disruptions, political, economic and on our customers’ financial condition could further adversely affect on ourcustomers’financialconditioncouldfurtheradverselyaffect on favourable termsorinsimilaramounts. or enterintojoint ventures. maycontributetovolatility in our businessoroperatingenvironment, our abilitytorecoverpayment ofreceivables fromcustomers and could adverselyaffectour ability to raise financinginthepubliccapital, central banks’ interventions is uncertain. In addition, it is uncertain commercial paper program, are provided by various financial institutions. extend credit to, any single entity or entity group or a particular industry. credit marketshaveinternalpolicies limitingtheirabilitytoinvestin,or consequences. Inaddition,participants in thepubliccapital and bank other regulations, reduced bank lending in general or fewer banks central bank monetary policies, changes to bank capitalization or for our business and credit ratings at the time capital is raised. outlook equity, debtcapitalandmoneymarkets,aswellthebankcredit described inthisMD&A. operating activities,whichissubjecttovarious risks,includingthose could causeinterestrateandcurrencyvolatility and movements,and us, including through equity offerings. Business acquisitions could also us, including through equity offerings. Business acquisitions could also expenditures or our investments in new businesses, or try to raise raise to try or capital our businesses, limit new to in need may we investments our or activities, operating expenditures from flows cash capital by disposing of assets of disposing by capital uncertainty couldnegativelyimpact equityanddebtcapitalmarkets, revenues andcashflows,aswellour position underoursecuritized bank credit and/or commercial paper markets as well as the cost borrowing costsandareductionintheamountoffundingavailable to Ourabilitytoaccesssuchmarketsandthecostamountof market. may negatively affect our ability to raise debt or equity capital, retain may negativelyaffect ourabilitytoraisedebtorequity capital,retain adjustment inthemarketpriceor tradingvolumes ofBCE’s securities, and financialmarkets.However, theefficacyofgovernments’and and fiscal interventions designed to stabilize economic conditions andcreditratingshavesimilaradverse adversely affectouroutlook available orincreasethecostofsuchcapital.Inaddition,anincreased as aresultofreducedactivityorconsolidation,couldreducecapital and provideforplannedgrowthdependsonhavingaccesstoadequate If we are unable to raise the capital we need or generate sufficient sufficient generate or need we capital the raise to unable are we If lead to further increases in bad debts, thereby negatively affecting our level ofdebtborrowingscouldresultinlowercreditratings,increased trade receivables programs. thereof. Additionally,thenegativeimpact oftheCOVID-19 pandemic to time,therearenoassurancesthat these facilitieswillberenewed funding available depend largely on prevailing market conditions and the 108

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BCE In c . 2020Annu a l R e po r t The economic environment, pension rules or ineffective governance governance ineffective or rules pension environment, economic The The funding requirements ofourpost-employment benefitplans,based of this MD&A and inNote28toBCE’s 2020Financial riskmanagementofthisMD&A We are exposed to various credit, liquidity and market risks market and liquidity credit, various to exposed are We declared or increased be will dividends that guarantee cannot We will be declared. Dividend increases and the declaration of dividends will bedeclared.Dividendincreasesandthedeclarationofdividends Our exposure to credit, liquidity and market risks, including equity price, liquidityandmarketrisks,includingequityprice, Our exposure tocredit, Our failuretoidentifyandmanageourexposure tochangesininterest financial resultswhichare,inturn,subjectto various assumptions financial performance.Inaddition,thereturnonourpensionplan With alargepensionplanmembershipand our growthprospects. contributions infutureyears. effect on our post-employment benefit planobligationsand pension of the BCE Board and, consequently, there can be no guarantee that there canbeno guarantee that of the BCE Boardand, consequently, dividends onanyofBCE’s outstandingsharesaresubjecttothediscretion contributions to significantly differ from our current estimates, require differfromourcurrentestimates,require contributions tosignificantly on valuations ofplanassetsandobligations,depend onanumberof on ourliquidityandfinancialperformance. of pensionplanassetsandobligations,couldhaveanadverseimpact obligations are exposed to potential volatility. Failure to recognize and challenges inraisingcapitalonmarket-competitiveterms. cash flowshortages,inabilitytocompleteplannedcapitalexpenditures, conditions couldleadtomissedopportunities, reducedprofitmargins, consolidated financialstatements. us toincreasecontributionsourpost-employment benefitplansin contributions to our post-employment benefit plans in the future the in plans benefit liquidity post-employment our obligations, to pension our contributions on effect adverse an have could an adverse effect on our cash flows from operating activities and on an adverseeffectonourcashflowsfromoperatingactivitiesand by sellingorotherwisedisposing ofassets.Anythesecouldhave medium term by the COVID-19 pandemic. This could have an adverse benefit obligationsmaybothbe negativelyimpacted inthenearto manage economicexposure andpensionrulechanges,ortoensure reputational damage,equityanddebtsecuritiesdevaluations, and rates, foreignexchangeBCE’s sharepriceandothermarket and risks,includingthosesetoutinthisMD&A. and ourinvestmentinnewbusinessesortrytoraiseadditionalcapital acceptable terms,wemayhavetolimitourongoingcapitalexpenditures assets and/or the discount rate used for valuing our post-employment and actuarialstandards.Changesinthesefactorscouldcausefuture and changingregulatoryreporting requirements,ourpension are subjecttothepressuresofglobaleconomicenvironment by theBCEBoardareultimatelydependentonBCE’s operationsand and financial performance, and we may be required to increase increase to required be may we and performance, financial and Increases in the BCE common share dividend and the declaration of Increases intheBCEcommonsharedividendanddeclarationof If we cannot access the capital we need or generate cash flows to If wecannotaccessthecapitalneedorgeneratecashflowsto long-term interest rates, plan demographics, and applicable regulations implement ourbusinessplanormeetfinancialobligationson interest rate and currency fluctuations, is discussed in section 6.5, interest rateandcurrencyfluctuations,isdiscussedinsection6.5, the future and, therefore, have a negative effect on our liquidity and the futureand,therefore,haveanegativeeffectonourliquidityand factors, includingactualreturnsonpost-employment benefitplanassets, that effectivegovernanceisinplaceforthemanagementandfunding the dividend on common shares will be increased or that dividends the dividendoncommonshareswillbeincreasedorthatdividends DB pension plans that pension plansthat • • • • The failure to reduce costs as well as unexpected increases in costs costs in increases unexpected as well as costs reduce to failure The There is no assurance that the assets of our post-employment benefit LITIGATION AND LEGAL OBLIGATIONS Our objectives for targeted cost reductions continue to be aggressive Our objectivesfortargeted cost reductionscontinue to be aggressive Our complexbusinessoperationsaresubjecttovarious taxlaws.The plan solvency obligations and could therefore also significantly affect affect plan solvency obligations andcouldthereforealsosignificantly plans willearntheirassumedrateofreturn.Asubstantialportion of proactively address our legal and regulatory obligations could could obligations regulatory and legal our address proactively We becomeinvolved invarious claimsandlegalproceedingsaspart Legal proceedings, changes in applicable laws and the failure to to failure the and laws applicable in changes proceedings, Legal depends significantly on the performance of capital markets. Market ontheperformanceofcapitalmarkets.Market depends significantly ease, and securities laws facilitate the introduction of class action on anongoingbasis.Examplesofriskstoourabilityreducecostsor especially sinceincrementalcostsavingsaremoredifficulttoachieve changes totheamountofcurrentanddeferredincometaxassets of incometaxesandtheapplicability ofcommoditytaxesinmanycases our cashfundingrequirements. conditions also impact the discount rate used to calculate our pension our post-employment benefit plans’ assets is invested in public equity of class actions on behalf of a large group of people with increasing of classactionsonbehalfalarge groupofpeoplewithincreasing of ourbusiness.Plaintiffsareable tolaunchandobtaincertification could adversely affect our ability to achieve our strategic imperatives imperatives strategic our achieve to ability our affect adversely could amounts expected but there is no assurance that we will be successful in reducing costs, but thereisnoassurancethatwewillbesuccessfulinreducingcosts, require significantjudgmentininterpretingtaxrulesandregulations.Our available, thecalculation based onalloftheinformationthatiscurrently new taxes or other adverse tax implications. In addition, while we believe adoption ofnewtax laws, orregulations orrulesthereunder, orchanges benefit plans’assetstoearntherateofreturnthatwehaveassumed theabilityofourpost-employment and debtsecurities.Asaresult, have an adverse effect on our business and financial performance financial and business our on effect adverse an have and financial guidance financial and Income and commodity tax amounts may materially differ from the the from differ materially may amounts tax commodity and Income limit potential costincreasesincludethefollowing: liabilities and other liabilities and could, in certain circumstances, result lawsuits by secondary market investors against public companies in anassessmentofinterestandpenalties. for alleged misrepresentations in public disclosure documents and tax filingsaresubjecttogovernmentauditsthatcouldresultinmaterial that wehaveadequatelyprovidedforallincomeandcommoditytaxes thereto orintheinterpretation thereof, couldresultinhighertax rates,

Achieving timely cost reductions while moving to an IP-based network will notleadtooperationalissues will besuccessfulorthatreplacementproductsservicesprovided Our cost reduction objectives require aggressive negotiations with Our costreductionobjectivesrequireaggressivenegotiationswith Failure tocontaingrowingoperationalcosts relatedtonetworksites, our financialperformance content andequipmentacquisitioncouldhaveanegativeeffecton considerations andotherunforeseenobstacles our suppliers andtherecanbenoassurancethatsuchnegotiations network performance,footprintexpansion, spectrumlicencesand be delayedbycustomercontractualcommitments,regulatory a certainperiodoftime Increased costsrelatedtotheCOVID-19 pandemic couldcontinuefor is dependent on disciplined network decommissioning, which can is dependent on disciplined network decommissioning, which can • • • • • • • The failure to evolve practices to effectively monitor and control control and monitor effectively to practices evolve to failure The This mayincludevaluations andestimatesrelatedtoallowancefor As a public company with arangeofdesirable and valuable products As aresultoftheCOVID-19 pandemic, inthesecondquarterof2020, Specific examplesrelevant tousinclude: which, by their nature, could result in sizeable damage awards and which, bytheirnature,couldresult insizeabledamageawardsand we recordedanimpairment chargeinourBellMediasegmentrelating financial performance and reputation. In addition, the increase in laws pending or future litigation, including an increase in certified class actions pending orfuturelitigation,including anincreaseincertifiedclassactions possible that the estimates currently recorded in our financial results recorded inourfinancialresults possible thattheestimatescurrently Economic conditions and changing customer behaviour could lead lead could behaviour customer changing and conditions Economic events canresultinfinanciallossandbranddegradation. of financialstatementsbyemployeesand/orexternal parties. Fraud corruption, misappropriation ofassetsandintentionalmanipulation disciplined programcoveringgovernance,exposure identification evolution of our business create an environment of complex compliance costs relatingtolitigation,could have anadverseeffecton our business, oral statements.Changesinlawsorregulations,howtheyare doubtful accounts and impairment of contract assets, both of which degradation requirements which mustbeadequatelymanaged. benefit plansandotherprovisions. non-financial assets, derivative financial instruments, post-employment and assessment, prevention,detectionandreporting thatconsiders and assessment, and servicesa large number of employees, BCErequiresa and regulations around customer interactions and the technological and regulationsaroundcustomer interactionsandthetechnological interpreted, and the adoption of new laws or regulations, as well as forward-looking information,inventoryvaluation reserves,impairment of take intoaccountcurrenteconomicconditions,aswellhistoricaland for theyearendedDecember 31, 2020 couldchangeagaininthefuture. to certainassetsforourEnglishTV, French TVandradioservices.Itis fraudulent activities could result in financial loss and brand brand and loss financial in result could activities fraudulent to further impairment charges and changes to estimates to changes and charges impairment further to

Subscription fraud on accounts established with a false identity or signal securitysystems,causingrevenueloss Copyright theft and other forms of unauthorized use that undermine Copyright theftandotherformsofunauthorizedusethatundermine Canada and ExpressVu, through compromise or circumvention of Ongoing effortstostealtheservicesofTVdistributors,includingBell paid withastolencreditcard policies toaddressclimatechangesuch ascarbonpricingwhich, Failure to successfully deliver on our contractual commitments, whether influencedbygovernment Fluctuations inenergypricesarepartly Network usage fraud such as call/sell operations using our wireline Network usagefraudsuchascall/selloperationsusingourwireline Fraudulent (unauthorized)accessandmanipulationofcustomer expectations or wirelessnetworks due to security events, operational challenges or other reasons, may combined withgrowingdatademandthatincreasesourenergy divert users to unlicensed or otherwise illegitimate platforms, thus divert userstounlicensedorotherwiseillegitimateplatforms,thus result infinancialpenaltiesandlossofrevenues requirements, couldincreaseourenergycostsbeyondcurrent accounts, includingthroughsim-swapandport outfraud impacting ourabilitytoderivedistributionandadvertisingrevenues the exclusivityofBellMedia’s content offerings,whichcouldpotentially BCE In c . 2020Annu a l R e po r t

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MD&A Business risks MD&A Business risks • • • • • • ENVIRONMENTAL AND HEALTH CONCERNS some studies suggest links to certain conditions, others conclude there some studiessuggestlinkstocertainconditions,othersconcludethere storage, wireless phones,networksandtowerspose apotential healthrisk. While well as those of governments Climate change and other environmental concerns could have an an have could concerns Global climatechangecouldexacerbatecertainofthethreatsfacing environmental other and change Climate Many studies have been performed or are ongoing to assess whether Many studieshavebeenperformedorareongoingtoassesswhether Examples oflegalandregulatoryobligationsthatwemustcomplywith Health concerns about radiofrequency emissions from wireless wireless from emissions radiofrequency about concerns Health of our operations also raise environmental considerations, such as fuel of ouroperationsalsoraiseenvironmentalconsiderations,suchasfuel disasters insuchcountriescouldfurthernegativelyimpact ourbusiness. events referredtoin our business, including the frequency and severity of weather-related our operationsandcreatepositive impacts wherepossible. communication devices and equipment could have an adverse adverse an have could equipment business and our on devices effect communication members, customersandinvestors, regard environmentalprotectionasanintegralpart ofdoingbusiness recovery andrecyclingofend-of-lifeelectronicproductswesellorlease. and outsourcers are located in foreign countries, localized natural and outsourcersarelocatedinforeigncountries,localizednatural action toreduceournegativeimpacts ontheenvironment, recognize andadequatelyrespond to and thatweseektominimizethenegativeenvironmentalimpacts of replace andupgrade ournetworks,ITsystems,equipmentandother adverse effect on our business our on effect adverse In addition, our team members, customers and investors expect that we In addition,ourteammembers,customersandinvestorsexpectthatwe In addition, rising mean temperatures and extended heat waves could in fines,missedopportunities, additionalregulatoryscrutiny increasing ourenergyconsumptionandassociatedcosts.Severalareas increase the need for cooling capacity in our network infrastructure, thus include thoseresultingfrom: business continuity depend on how well we protect, test, maintain, maintain, test, business continuitydependonhowwellweprotect, facilities inthissection9.Giventhatsomeofourthird-party suppliers 110

Tax legislation Act, aswellotherprivacy legislationwemaybecomesubjectto As discussedinmoredetailsection8, via mandatoryflow-throughofprivacy-related obligationsbyour Corporate andsecuritieslegislation Consumer protectionlegislation policies andotherinitiativesoftheCRTC,ISED,CompetitionBureau Privacy legislation,suchasCanada’s anti-spam legislation(CASL) customers, includingtheGeneralDataProtectionRegulation(EU) and the nature and othergovernmentalagencies,aswelllawsofaregulatory IFRS requirements

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BCE In GHG c Personal Information Protection and Electronic Documents Personal InformationProtectionandElectronicDocuments . 2020Annu emissions, disposal ofhazardous residual materials, and a Operational performance – Our operations and Operational performance–Ouroperationsand l R e po r t on environmental

and their harm ourbrandandreputation. changing Regulatory environment matters, and to take matters, and to take expectations as expectations as , loss of team , lossofteam could result couldresult Failure to , • • • • • The failure to comply with any of the above or other legal or regulatory The failuretocomplywithanyoftheaboveorotherlegalregulatory Any of these events could have an adverse effect on our business and Safety Code6,whichsetsthelimitsforsafeexposure toradiofrequency which could present significant challenges to our business and financial which couldpresentsignificantchallengestoourbusinessandfinancial Our business is heavily dependent on radiofrequency technologies, Our businessisheavilydependentonradiofrequencytechnologies, financial performance. performance, suchasthefollowing: performing complianceassessmentsandhaschosenHealthCanada’s penalties, and result in reputational harm or being disqualified from penalties, andresultinreputationalharmorbeingdisqualifiedfrom Finally, the failure of our employees, suppliers or other business partners For adescriptionofimportant legalproceedingsinvolving us,pleasesee (IARC) oftheWorld HealthOrganizationclassifiedradiofrequency health effects. In 2011, the International Agency for Research on Cancer health effects.In2011,theInternationalAgencyforResearchonCancer obligations, couldalsoexpose ustolitigationandsignificantfines obligations couldexpose ustolitigation,includingpursuantclass outlines safety requirements for the installation and operation of devices safety requirements for the installation and operation of devices outlines emissions at home or at work, as its exposure standard. This code also electromagnetic fields from wireless phonesas possibly carcinogenic bidding oncontracts. reputational harm. mandatory for all proponents and operatorsofradioinstallations. additional researchintolong-termheavyuseofmobilephones. not beruledoutwithreasonableconfidence.TheIARCalsocalledfor actions, andsignificantfinespenalties,aswellresult in and basestationantennas.ISEDhasmadecompliancetoSafetyCode ISED isresponsible forapproving radiofrequencyequipmentand limitation, anti-briberylaws,aswellourpolicies andcontractual is no established causation between mobile phone usage and adverse to complywithapplicable legalandethical standardsincluding,without the sectionentitled that emit radiofrequency fields such as mobile phones, Wi-Fi technologies that emitradiofrequencyfieldssuchasmobilephones,Wi-Fitechnologies to humans,butalsoindicatedthatchance,biasorconfoundingcould

wireless networkasrequiredbymarketevolution Changes inscientificevidenceand/orpublicperceptionscould potential lawsuits would be unpredictable and could change over time practices in connection therewith, and the likely outcome of such We mayfacelawsuitsrelatingtoallegedadversehealtheffects Payment cardindustrystandardsforprotectionagainstcustomer Environmental protectionandhealthsafetylaws Public concerns could result in a slower deployment of, or in our inability credit cardinfractions on customers, as well as relating to our marketing and disclosure on customers,aswellrelatingtoourmarketinganddisclosure lead to additional government regulations and costs for retrofitting lead toadditionalgovernmentregulationsandcostsforretrofitting infrastructure andhandsetstoachievecompliance to deploy,infrastructurenecessarymaintainand/orexpand our Legal proceedingscontainedintheBCE 2020 AIF

6 .

10 • • • This sectiondiscusseskeyestimatesandassumptionsthatmanagementhasmadehowtheyaffecttheamountsreported inthe 10.1 Any sensitivity analysis included in this section should be used with Any sensitivityanalysis included in this section should be usedwith See Note 2, CRITICAL ACCOUNTING ESTIMATES JUDGMENTS AND KEY section withtheAuditCommitteeofBCEBoard. AND FINITE-LIFE INTANGIBLE ASSETS USEFUL LIVESOFPROPERTY,PLANTANDEQUIPMENT We haveprepared ourconsolidatedfinancialstatementsusingIFRS.Othersignificantaccounting policies,notinvolvingof thesamelevel ESTIMATES were highly uncertain at the time the estimates and judgments were were highlyuncertainatthetimeestimatesandjudgments Our moresignificantestimatesandjudgmentsaredescribedbelow. Our senior management has reviewed the development and selection Our seniormanagementhasreviewedthedevelopmentandselection pandemic, financial statements andnotes. Italso describes key changes inaccounting standards andour accounting policies, and howthey affect We consider the estimates and judgments described in this section to be We considertheestimatesandjudgmentsdescribedinthissectiontobe We baseourestimatesonanumberoffactors,includinghistorical When preparing thefinancialstatements,managementmakesestimates We review our estimates of the useful lives of property, plant and We reviewourestimatesoftheusefullivesproperty,plantand Property, plantandequipmentrepresentasignificantproportion ofour equipment and finite-life intangible assets on an annual basis and equipment andfinite-lifeintangibleassetsonanannualbasis each keyassumptionmaynotbelinear. caution as the changes are hypothetical and the impact ofchanges in of thecriticalaccountingestimatesandjudgmentsdescribedinthis experience, current our financialstatements. and judgmentsrelatingto: as well as well as changes in business prospects or economic and industry as wellchangesinbusinessprospects oreconomicandindustry adjust depreciation oramortization onaprospective basis, as required. material impact onourfinancialstatementsandsegments. made, andchangestotheseestimatesjudgmentscouldhavea an important part ofunderstandingourfinancialstatementsbecause are subjecttomeasurementuncertaintyandactualresultscoulddiffer. measurement uncertaintyasthosediscussedinthissection,areneverthelessimportant toanunderstandingofourfinancialstatements. information abouttheaccountingprinciplesweusedtoprepare ourconsolidatedfinancialstatements. factors, maycausetheestimateduseful livesoftheseassetstochange. total assets.Changesintechnologyorourintendeduseoftheseassets, the circumstances.Bytheirnature,theseestimatesandjudgments they require management to make assumptions about matters that they requiremanagementtomakeassumptionsaboutmattersthat

disclosure ofcontingentassetsandliabilities reported amountsofassetsandliabilities reported amountsofrevenuesandexpenses inancial measures, accounting policies and controls ur accounting policies ur F O and actionsthatthecompany mayundertakeinthefuture, other assumptions that we believe are reasonable under other assumptionsthatwebelievearereasonableunder Significant accounting policies events, including but not limited to the COVID-19 , andNote 3, Discontinued operations

The estimated useful lives of property, plant and equipment and finite-life The estimatedusefullivesofproperty,plantandequipmentfinite-life The discount rate is based on the yield on long-term, high-quality The mostsignificantassumptionsusedtocalculatethenet post- The amountsreported inthefinancialstatementsrelatingtoDBpension A lower discount rate and a higher life expectancy result in a higher net A lower discount rateand ahigherlife expectancy result inahigher net A discountrateisusedtodeterminethepresentvalue ofthefuture value prospectivelyovertheadjustedestimatedusefullives. POST-EMPLOYMENT BENEFITPLANS Our actuariesperformavaluation atleasteverythreeyearstodetermine prior assessment, we depreciate or amortize the remaining carrying wedepreciateoramortizetheremainingcarrying prior assessment, post-employment benefitobligationandahighercurrentservice cost. post-employment benefitobligations andfuturenet post-employment plans andOPEBsaredeterminedusingactuarialcalculationsthat While we believe that these assumptions are reasonable, differences While webelievethattheseassumptionsarereasonable,differences When factors indicate that assets’ useful lives are different from the When factors indicate that assets’ useful lives are different from the We account for differences between actual and expected results cash flows that we expect will be needed to settle post-employment cash flowsthatweexpectwillbeneededtosettle of compensation increase, trends in healthcare costs and expected of compensationincrease,trendsinhealthcarecostsandexpected obligations. Theactuarialvaluation usesmanagement’s assumptions expectancy isbasedonpubliclyavailable Canadian mortalitytables estimated cashflowsofthe post-employment benefitplans.Life corporate fixedincomeinvestments,withmaturitiesmatchingthe employment benefitplanscostarethediscountrateandlifeexpectancy. based onseveralassumptions. benefit obligations. benefit planscost. recognized immediatelyinthedeficit. average remainingyearsofserviceemployees. and isadjustedforthecompany’s specificexperience. intangible assets are determined by internal asset life studies, which intangible assets are determined by internal asset life studies, which in benefit obligations and plan performance in OCI, which are then in benefitobligationsandplanperformanceOCI,whicharethen in actualresultsorchanges assumptions couldmateriallyaffect tear, replacementhistoryandassumptionsabouttechnology evolution. take into account actual and expected future usage, physical wear and for, amongotherthings,thediscountrate,lifeexpectancy,rate the actuarialpresent value of the accruedDBpension plan and OPEB , inBCE’s 2020 consolidatedfinancialstatementsformore BCE In c . 2020Annu a l R e po r t

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MD&A  Financial measures, accounting policies and controls MD&A  Financial measures, accounting policies and controls The followingtableshowsasensitivityanalysisofkeyassumptionsusedtomeasurethenetpost-employment benefitobligationsandthenet service offers with the same range of services, adjusted for market service offerswiththesamerangeofservices,adjustedformarket separately withoutaservicecontractandpricesfornon-bundled selling pricesbasedontheobservable pricesatwhichwesellproducts services when they are separately identifiable andthe customer can selling pricesofproductsandservices. REVENUE FROMCONTRACTSWITHCUSTOMERS IMPAIRMENT OFNON-FINANCIALASSETS COVID-19 pandemic. Accordingly, impairment testingwasrequired for Goodwill and indefinite-life intangible assets are tested for impairment post-employment benefitplanscostforourDBpensionandOPEBplans. We make a number of estimates when calculating recoverable amounts We make a number of estimates when calculating recoverable amounts We arerequiredtomakeestimatesthataffecttheamountofrevenue During the second quarter of 2020, we identified indicators of impairment During thesecondquarterof2020, we identifiedindicatorsofimpairment Property, plantandequipmentfinite-lifeintangibleassetsaretested For bundledarrangements,weaccountforindividualproductsand certain groupsofCGUsaswell forgoodwill. declines inadvertisingrevenues,lower subscriberrevenues andoverall Anasset’scarrying value oftheassetsovertheirrecoverableamount. goodwill are groupedatthelowestlevel for which there are separately each reporting period,indicate thattheircarryingamountmaynotbe on itsstand-alonesellingprice.Wegenerallydetermine each productorserviceincludedinthecontractwithcustomerbased conditions andotherfactors,asappropriate. Whensimilarproducts using discountedfuturecashflowsorother valuation methodstotest all oraportion oftheimpairment isreversed. reporting dateand,iftheasset’s recoverableamounthasincreased, recoverable amount is the higher of its fair value less costs of disposal recoverable. For the purpose ofimpairment testing,assetsotherthan and itsvalue inuse.Previouslyrecognizedimpairment losses,otherthan annually orwhenthereisanindicationthattheassetmaybeimpaired. available resources. The totalarrangementconsideration is allocated to SENSITIVITY ANALYSIS and services purchased by a customer in excess of those included in and servicespurchasedbyacustomerin excess ofthoseincluded in margin approach todeterminestand-alonesellingprices.Products and servicesarenotsoldseparately, weusetheexpectedcostplus benefit from the product or service on its own or with other readily benefit fromtheproductorserviceonitsownwithotherreadily Impairment lossesarerecognizedandmeasuredastheexcessof identifiable cashinflows. increases indiscountratesresulting fromtheeconomicimpact ofthe in for certain of our Bell Media TV services and radio markets, notably for certainofourBellMediaTVservices andradiomarkets,notably the discountrate.Whenimpairment chargesoccur theyarerecorded future cashflows,thenumberofyearsusedinflowmodel and Theseestimatesincludetheassumedgrowthratesfor for impairment. those attributabletogoodwill,arereviewedforpossible reversalateach for impairment ifeventsorchangesincircumstances, assessedat from contracts with customers, including estimating the stand-alone from contractswithcustomers,includingestimatingthestand-alone the bundledarrangementareaccountedforseparately. 112 Discount rate Life expectancyatage65

Impairment ofassets |

BCE In c . 2020Annu a l R e . po r t ASSUMPTION CHANGE IN 1 year 0.5% The carryingvalue of these CGUs was $464 million at December 31, 2019. A CGU is the smallest identifiable group of assets that generates cash A CGUisthesmallestidentifiablegroupofassetsthatgeneratescash $146 million allocatedtofinite-lifeintangibleassets,mainlyforprogram streaming services.Thechargesweredeterminedbycomparing the value oftheseCGUswas$942 million. GOODWILL IMPAIRMENT TESTING within our Bell Media segment. These charges included $291 million Thesechargesincluded$291 million within ourBellMediasegment. within our Bell Media segment. Theimpairment chargeswerearesult within ourBellMediasegment. flows and market-based valuation models, which include five-year flows orother on valuation methods. Cashflowsareprojectedbased past experience, actual operating results and business plans. When the These impairmentproperty, charges plant related and equipment. We identifyanypotential impairment bycomparing thecarryingvalue We performanannualtestforgoodwillimpairment inthefourthquarter We estimatedthefairvalue oftheCGUsusingbothdiscountedcash During Q2 2020, werecognized$452 million ofimpairment chargesfor December 31, 2025,usingdiscountratesof8.0%to9.5%andaperpetuity cost of disposal. We estimated the fair value of the CGUs using both groups ofassets. discounted cashflowsandmarket-based valuation models,which our EnglishandFrench TVservicesaswellvarious radiomarkets costs ofdisposal anditsvalue inuse.Bothfairvalue lesscostsofdisposal Therecoverable of aCGUorgroupCGUstoitsrecoverableamount. cash flowprojectionsderivedfrombusinessplansreviewedbysenior carrying value oftheCGUstotheirfairvalue lesscostofdisposal. of continuedadvertisingdemandandratingspressuresintheindustry growth rateof companies andmarkettransactions.Afterimpairments, thecarrying using a discount rate of 7.5% and a perpetuity growth rate of nil as well using adiscount rate of7.5% andaperpetuity growth rate ofnil aswell reviewed by senior management for the period of July 1, 2020 to reviewed byseniormanagementfortheperiodofJuly 1, 2020 by comparing thecarryingvalue oftheCGUstotheirfairvalue less recoverable amount of a CGU or group of CGUs is less than its carrying recoverable amountofaCGUorgroup ofCGUsislessthanitscarrying management fortheperiodofJanuary 1, 2020 toDecember 31, 2024, resulting from audience declines, as well ascompetitive pressure from and featurefilmrights,$15 million to property, plantandequipment allocated toindefinite-lifeintangibleassetsforbroadcast and value inuse are basedonestimatesofdiscountedfuturecash amount of a CGU or group of CGUsis the higher of its fair value less and wheneverthereisanindicationthatgoodwillmightbeimpaired. as marketmultipledatafrompubliccompanies andmarkettransactions. maretcagsi 21 nldd$5 millionallocatedto 2019included$85 Impairment chargesin include five-year cash flow projections derived from business plans include five-yearcashflowprojectionsderivedfrombusinessplans indefinite-life intangible assets, and $8 million allocated primarily to allocatedprimarilyto indefinite-life intangibleassets,and$8 million inflows thator are independent of the cash inflows from other assets for network and infrastructure and equipment. They were determined They were determined for network and infrastructure and equipment. for each of our CGUs or groups of CGUs to which goodwill is allocated, for eachofourCGUsorgroupstowhichgoodwillisallocated, to broadcast licences and certain assets for various radio markets IMPACT ONNETPOST-EMPLOYMENT ASSUMPTION INCREASE IN BENEFIT PLANSCOSTFOR2020– INCREASE/(DECREASE) (76) 38

(1.0% ) to nil as well as market multiple data from public tonilaswellmarketmultipledatafrompublic ASSUMPTION DECREASE IN (38) 64 IMPACT ONPOST-EMPLOYMENT BENEFIT OBLIGATIONS AT DECEMBER31,2020– ASSUMPTION INCREASE IN (1,897) 1,092 INCREASE/(DECREASE) ASSUMPTION DECREASE IN (1,092) licences, licences, 2,127 There werenogoodwillimpairment chargesin 2020 or2019. The amounts of deferred tax assets and liabilities are estimated with The amountsofdeferredtaxassetsandliabilitiesareestimatedwith The application ofIFRS 16 requires ustomakeestimatesthataffectthe Any significant change in each of the estimates used could have a Any significantchangeineachoftheestimatesusedcouldhave An impairment charge is recognized in segments asdisclosedinNote 4, value, therecoverableamountisdeterminedforitsidentifiableassets LEASES DEFERRED TAXES where we control the timing ofthe reversal of the temporary difference when itwilloccurorhowaffecttheassetvalues wehavereported. We believe that any reasonable possible change in the key assumptions We cannotpredictwhetheraneventthattriggersimpairment willoccur, Deferred taxesareprovidedontemporary differencesarisingfrom Both ourcurrentanddeferredtaxassetsliabilitiesarecalculated Deferred taxassetsandliabilitiesarecalculatedattheratesthat For theBellMediagroupofCGUs,recoverableamountdetermined During thesecondquarterof2020,weidentifiedindicatorsthat Bell Wireline groups of CGUs is based would not cause their carrying Bell WirelinegroupsofCGUsisbasedwouldnotcausetheircarrying goodwill, ourCGUsorgroupsofcorrespond toourreporting For purposesover itsrecoverableamount. ofimpairment testingof consideration giventothetiming,sourcesandamountsoffuture of goodwill. discount rates.Theimpairment testingdidnotresultinanimpairment notablydeclines of theeconomicimpact oftheCOVID-19 pandemic, goodwill forourBellMediagroupofCGUsmaybeimpaired asaresult on whichtheestimateofrecoverableamountsBellWirelessor quantify thechangesinouroverallfinancialperformanceifwehad consolidated financialstatements. group ofCGUsoverthetotalamountsassignedtoitsassetsand using tax rates that have been enacted or substantively enacted at using taxratesthathavebeenenactedorsubstantivelyat used differentassumptions. measurement of right-of-use assets and liabilities, including determining measurement ofright-of-useassets andliabilities,includingdetermining rate oranincreaseof0.4%inthediscountwouldhaveresulted weareunabletoreasonably resulting impairment charge.Asaresult, material impact onthecalculationofrecoverableamountand and it is probable that the temporary difference will not reverse in the are expectedtoapply whentheassetorliabilityisrecoveredsettled. Adecreaseof annual impairment test. and liabilities.TheexcessoftherecoverableamountCGUor amounts toexceedtheirrecoverableamounts. liabilities areinitiallymeasuredatthe presentvalue oftheleasepayments liabilities istherecoverableamountofgoodwill. investments in subsidiaries, joint arrangements and associates, except its recoverableamountbeingequaltocarryingvalue. in thesecondquarterof 2020 hasbeencarriedforwardandusedinthe income statementsforanyexcessofthecarryingvalue ofgoodwill in advertising revenues, lower subscriber revenues and increases in in advertising revenues, lower subscriber revenues and increases in that arenotpaid atthecommencementdate,discounted usingour the appropriate discountrateusedtomeasureleaseliabilities. Lease taxable income. foreseeable future. the reporting date. Segmented information

(0.6%) intheperpetuitygrowth Impairment of assets , inBCE’s 2020 in the in the

The calculation of income taxes requires judgment in interpreting tax rules The calculation of income taxes requires judgment in interpreting tax rules The determinationofthediscountrateusedtovalue ourpost- A provision for onerous contracts is recognized when the unavoidable spreads andleaseterms.Weapply asingleincrementalborrowingrate CONTINGENCIES FAIR VALUE OFFINANCIALINSTRUMENTS INCOME TAXES POST-EMPLOYMENT BENEFITPLANS ONEROUS CONTRACTS JUDGMENTS which futureincometaxratesare applied. when assessing the timing of the reversal of temporary differences to judgment is required when setting the criteria for fixed income Certain financial instruments, such as investments in equity securities, Certain financialinstruments,suchasinvestmentsinequitysecurities, published price quotations or by using other valuation techniques that publicly available risk-freeinterestrates,adjustedforapplicable credit Management judgment is used to determine the amounts of deferred tax has sufficient amounts accrued for outstanding tax matters based on has sufficient amounts accruedforoutstanding tax matters based on of comprehensiveincome.Fair values areestimatedbyreferenceto outcomes and assuming various litigation and settlement strategies, outcomes and assumingvarious strategies, litigation andsettlement claims and legal proceedings seeking monetary damages and other carried inthestatementsoffinancial position atfair value, withchanges derivative financialinstrumentsandcertainelementsofborrowings,are employment benefit obligations requires judgment. The rate is set by Therateissetby employment benefitobligationsrequiresjudgment. costs ofmeetingourobligationsunderacontractexceedtheexpected ultimate tax determination is uncertain. Our tax filings are also subject ultimate taxdeterminationisuncertain.Ourfilingsarealsosubject relief. Pending claims and legal proceedings represent a potential cost may includeinputsthatarenotbasedonobservable marketdata,such readily determinable.Ourincrementalborrowingrateisderivedfrom at thepresentvalue ofthelowerexpectedcostterminating Theprovisionismeasured benefits tobereceivedunderthecontract. and deferred tax assets and liabilities. Management believes that it and deferredtaxassetsliabilities.Managementbelievesthat it as discountedcashflowsandearningsmultiples. assets andliabilitiestoberecognized. Inparticular, judgmentisrequired and regulations.Therearetransactionscalculationsforwhichthe material adverseeffectonourconsolidatedfinancialstatementsin itcouldhavea against usorrequirestopay alargesettlement, based oninformationthatisavailable atthetime. reference tomarketyieldsoflong-term,high-qualitycorporate fixed In the ordinary course of business, we become involved in various If the final resolution of a legal or regulatory matter results in a judgment If thefinalresolutionofalegalorregulatorymatterresultsinjudgment in fair value reflected in the income statements and the statements incremental borrowingrate, unless therateimplicitin the leaseis investments include the size of the issue and credit quality, along with investments includethesizeofissueandcreditquality,alongwith is derived.Themostsignificantcriteriaconsideredfortheselection of investments tobeincludedinthepopulation fromwhichtheyield curve information that currently isavailable.information thatcurrently income investmentsatthebeginningofeachfiscalyear. Significant the contractandexpectednetcostofcompletingcontract. the identification of outliers, whichareexcluded. the identificationofoutliers, to ourbusiness.Weestimatetheamountofalossbyanalyzingpotential to aportfolio ofleaseswithsimilarcharacteristics. to audits, the outcome of which could change the amount of current to audits,theoutcomeofwhichcouldchangeamountcurrent the period in which the judgment or settlement occurs. the periodinwhichjudgmentorsettlement BCE In c . 2020Annu a l R e po r t

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MD&A  Financial measures, accounting policies and controls MD&A  Financial measures, accounting policies and controls The following amended accounting standards issued by the IASB have an effective date after December 31, 2020 and have not yet been adopted The identificationofperformanceobligationswithinacontractand requires us to make judgments thataffect The application of IFRS 16 As required,effectiveJanuary 1, 2020,weadoptedthefollowingneworamendedaccountingstandards. FUTURE CHANGES TOFUTURE ACCOUNTING CHANGES STANDARDS AMENDED ACCOUNTING OR NEW OF STANDARDSADOPTION LEASES REVENUE FROMCONTRACTSWITHCUSTOMERS with otherreadilyavailable resources.Whenourrighttoconsideration what purpose theassetisused.Indeterminingleaseterm,we have the right to obtain substantially all of the economic benefits from have therighttoobtainsubstantiallyallofeconomicbenefitsfrom equipment when a customer takes possession of the product. We We equipment whenacustomertakespossession oftheproduct. Forcontracts bundled requiresarrangements, judgment. we account for of thelease,significanceanyleaseholdimprovementsand options). Economic incentives include the costs related to the termination option, weconsiderallfactsandcircumstancesthatcreateaneconomic certain to exercise those options. Similarly, we include periods covered we of time in exchange for consideration. At inception of the contract, conveys therighttocontroluseofanidentifiedassetforaperiod use of the asset and whether we have theright to direct how and for by BCE. revenues fromthesaleofwirelesshandsetsanddeviceswireline by terminationoptionswhenwearereasonablycertainnottoexercise and the customer can benefit from the product or service on its own or and thecustomercanbenefitfromproductorserviceonitsown whetherwe assess whetherthecontractcontainsanidentifiedasset, individual products and services when they are separately identifiable incentive toexerciserenewaloptions(ornottermination include periodscoveredbyrenewaloptionswhenwearereasonably importance oftheunderlyingassetstoouroperations. the amounttowhichwehavearightinvoice. Werecognizeproduct the productsandservicestransferredtodate,werecognizerevenuein withthevaluefrom acustomercorresponds tothecustomerof directly the timingofsatisfactionperformanceobligationsunderlong-term those options.To assessifwearereasonablycertaintoexercisean the measurement of right-of-use assets and liabilities. A lease contract 114 Amendments to IFRS 3 – Amendments toIFRS 3– Amendment to Amendment to STANDARD STANDARD Contract, Amendments Amendments Contract, Cost ofFulfillinga COVID-19-Related COVID-19-Related contingent liabilities contingent liabilities Onerous Contracts – Onerous Contracts – on Business Combinations Definition ofa Business, Rent IFRS 16 –Leases IFRIC AgendaDecision and contingent assets to

IAS 37 – | IFRS 16 –Leases

BCE In

Concessions, Concessions, c Provisions, Provisions, . 2020Annu

a l R e po These amendmentsclarifywhichcosts shouldbeincludedin These amendments to the implementation guidance of IFRS 3 These amendmentstotheimplementationguidanceof IFRS 3 This amendment provides an optional relief to lessees from This amendmentprovidesanoptionalrelieftolesseesfrom DESCRIPTION DESCRIPTION COVID-19 pandemic. whether a transaction should be accounted for as a business whether atransactionshouldbeaccountedforas a business whether a contract isonerous. combination oranassetacquisition. clarify thedefinitionofabusinesstoassistentitiesdetermine determining the cost of fulfilling a contract when assessing determining thecostoffulfillingacontract whenassessing (IFRIC) agendadecisionclarifyingthedeterminationoflease International FinancialReporting InterpretationsCommittee applying IFRS 16’s guidanceonleasemodificationaccounting term forcancellableorrenewableleasesunderIFRS 16. for rent concessions arising as a direct consequence of the for rent concessionsarisingasadirect consequenceofthe r t The determination of whether a loss is probable from claims and legal The determination of whether a loss is probable from claimsand legal The determination of CGUs or groups of CGUs for the purpose of Additionally, the determination of costs to obtain a contract, including the includingthe Additionally, thedeterminationofcoststoobtainacontract, sales commissionsandprepaid contractfulfillmentcosts,areincluded settlement would be deducted from cash from operating activities. We wouldbedeductedfromcashoperatingactivities.We settlement CONTINGENCIES CGU judgment. proceedings and whether an outflow of resources is likely requires proceedings andwhetheranoutflowofresourcesislikelyrequires pattern oftransfertothecustomer relatedproductsorservices. We accrueapotential lossifwebelieveaisprobableandanoutflow Revenues on certain long-term contracts are recognized using output Revenues on certain long-term contracts are recognized using output obtaining a contract are immediately expensed. Capitalized costs are obtaining acontractareimmediatelyexpensed.Capitalizedcosts costs ofobtainingacontractwithcustomer, principally comprisedof estimate theamountofalossbyanalyzingpotential outcomesand of resourcesislikelyandcanbereasonablyestimated,basedon methods based on products delivered, performance completed to date, methods basedonproductsdelivered,performancecompletedtodate, recognize servicerevenuesovertime,astheservicesareprovided. amortized on a systematic basis that is consistent with the period and amortized onasystematicbasisthatisconsistentwiththeperiodand assuming variousstrategies. litigationandsettlement non-current liabilities.Anypayment asaresultofjudgmentorcash impairment testingrequiresjudgment. in contractcoststhestatementsoffinancial position, exceptwhere Incremental identification ofincrementalcosts,alsorequiresjudgment. information that is available at the time. Any accrual would be charged the amortization period is one year or less, in which case costs of the amortizationperiodisoneyearorless,inwhichcasecostsof time elapsedormilestonesmet. to earnings and included in s

This agendadecisiondidnothaveasignificantimpact on our These amendmentsdidnothaveanyimpact onourfinancial IMPACT IMPACT statements. They may affect whether future acquisitions statements. Theymayaffectwhetherfutureacquisitions financial statements. of optional relief. along with the resulting allocation of the purchase price between along withtheresultingallocationofpurchasepricebetween are assessing the impact We arecurrently We didnotadoptthe the netidentifiableassetsacquiredandgoodwill.

these amendments.

accounted for as business combinations or asset acquisitions, accounted forasbusinesscombinationsorassetacquisitions, Trade payables and other liabilities EFFECTIVE DATE Early application ispermitted. Effective forannualreporting periods Early Effective forannualreporting periods beginning on or after January 1, 2022. beginning onorafterJanuary 1,2022. beginning on or after June 1, 2020. beginning onorafterJune 1,2020.

application ispermitted. Other or Other The terms adjusted net earnings and adjusted EPS do not have any The termsadjustednetearningsandEPSdonothaveany The termsadjustedEBITDA andadjustedEBITDA margindonothave toexplainourfinancialresults.Italsoprovidesreconciliations This sectiondescribesthenon-GAAPfinancialmeasuresandKPIsweuseinthisMD&A 10.2 Adjusted EBITDA comparable andadjustedEBITDAa IFRSfinancial measure.Alternatively,thefollowingtableprovides marginhavenodirectly ADJUSTED EBITDA ADJUSTED AND EBITDA MARGIN ADJUSTED NET EARNINGS AND ADJUSTED AND EPS EARNINGS ADJUSTED NET standardized meaning under IFRS. Therefore, they are unlikely to be standardized meaningunderIFRS.Therefore,theyareunlikelytobe shareholders beforeseverance,acquisitionandothercosts,netmark- statements. WedefineadjustedEBITDA marginasadjustedEBITDA We define adjusted net earnings as net earnings attributable to common We defineadjustedEBITDA asoperatingrevenuesless EBITDA forBCE’s segmentsisthesameassegmentprofitreported discontinued operations, net of tax and NCI. We define adjusted EPS share-basedcompensationplans,netlosses(gains)on equity settled divided byoperatingrevenues. costs asshowninBCE’s consolidatedincomestatements.Adjusted of thenon-GAAPfinancialmeasurestomostcomparable IFRSfinancialmeasures. comparable tosimilarmeasurespresentedbyotherissuers. reconciliation ofnetearningstoadjustedEBITDA. as adjustednetearningsperBCE common share. result ofthischange,priorperiodshavebeenrestatedforcomparative purposes. as theymayaffectthecomparability ofourfinancialresultsandcould a potentially distorttheanalysisoftrendsinbusinessperformance.As be comparable tosimilarmeasurespresentedbyotherissuers. any standardized meaning under IFRS. Therefore, they are unlikely to In 2020,weupdated ourdefinitionsofadjustednetearnings,EPSandfreecashflowtoexcludetheimpacts ofdiscontinuedoperations in Note 4, investments, earlydebtredemption costs,impairment ofassetsand to-market losses (gains) onderivatives used to economically hedge Adjusted EBITDA margin Adjusted EBITDA Amortization Severance, acquisitionandothercosts Other expense(income) Finance costs Depreciation Income taxes Net earningsfromdiscontinuedoperations Impairment ofassets Net earnings BCE operatingrevenues Interest onpost-employment benefitobligations Interest expense -GAAP financial measures and key performance indicators (KPIs)performance key and measures financial -GAAP Non Segmented information , inBCE’s 2020 consolidated financial The mostcomparable IFRS financialmeasuresarenetearnings share-based compensation plans, net losses (gains) on investments, share-based compensationplans,netlosses(gains)oninvestments, severance, acquisitionandothercosts,netmark-to-marketlosses performance of our businesses as they reflect their ongoing profitability. performance ofourbusinessesastheyreflecttheirongoingprofitability. We use adjusted net earnings and adjusted EPS, and we believe that We useadjustedEBITDA andadjustedEBITDA margintoevaluate the We believethatcertaininvestorsandanalystsuseadjustedEBITDA to (gains) onderivatives used toeconomically hedgeequity settled component in the determination of short-term incentive compensation evaluate the performance ofour businesses. Adjusted EBITDA is also one obligations orasacommonmeasurementtovalue companies inthe distort the analysis of trends in business performance. Excluding these distort theanalysisoftrendsinbusiness performance.Excludingthese certain investorsandanalystsusethesemeasures,amongotherones, operations, net of tax and NCI. We exclude these items because they operations, netoftaxandNCI.Weexcludetheseitemsbecausethey early debtredemptioncosts,impairment ofassetsanddiscontinued measure a company’s ability to service debt and to meet other payment analysts alsouseadjustedEBITDA andadjustedEBITDA marginto attributable tocommonshareholders andEPS. affect thecomparability ofourfinancialresultsandcould potentially items doesnotimplytheyarenon-recurring. for allmanagementemployees. to assess the performance of our businesses without the effects of telecommunications industry. We believe that certain investors and telecommunications industry. We believe that certain investors and BCE In 22,883 9,607 1,110 3,475 2,699 (226) 42.0% 792 194 472 116 929 2020 c 46 . 2020Annu a l R 10,006 23,793 e po 1,129 1,125 3,458 3,253 42.1% 102 114 886 2019 r (95) (29) 63 t

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MD&A  Financial measures, accounting policies and controls MD&A  Financial measures, accounting policies and controls The term net debt does not have any standardized meaning under The termnetdebtdoesnothaveanystandardizedmeaningunder The termsfreecashflowanddividend payout ratiodonothaveany The followingtableisareconciliationofnetearningsattributabletocommonshareholdersandEPSadjustedonconsolidated NET DEBT NET FLOWFREE PAYOUT DIVIDEND AND CASH RATIO standardized meaning under IFRS. Therefore, they are unlikely to be standardized meaningunderIFRS.Therefore,theyareunlikelytobe strength and performance of our businesses because it shows how strength andperformanceofourbusinessesbecauseitshowshow financial leverage because it represents the amount of debt that is financial leveragebecauseitrepresentstheamountofdebtthat is financial leverage. presented byotherissuers. pension funding, less capital expenditures, preferred share dividends and We considernetdebttobeanimportant indicatorofthecompany’s We considerfreecashflowtobeanimportant indicator ofthefinancial We define free cash flow as cash flows from operating activities, We define net debt as debt due within one year plus long-term debt We definenetdebtasduewithinoneyearpluslong-term Excluding theseitemsdoesnotimplytheyarenon-recurring. certain investorsandanalystsuse netdebttodetermineacompany’s of outstandingpreferredsharesinournetdebtas it isconsistentwith could potentially distorttheanalysisoftrendsin business performance. operations, acquisitionandothercostspaid and voluntary pension dividends paid bysubsidiariestoNCI.Weexcludecashfromdiscontinued costs paid (whichincludesignificantlitigationcosts)and voluntary excluding cashfromdiscontinuedoperations,acquisitionandother comparable tosimilarmeasurespresentedbyotherissuers. debt andreinvestinourcompany. Webelievethatcertaininvestors not coveredbyavailable cashandequivalents. Webelievethat businesses. Themostcomparable IFRSfinancialmeasureiscashflows and 50%ofpreferredshares,lesscashequivalents, asshown assets andtoevaluate thefinancialstrengthandperformanceofour and analystsusefreecashflowto value abusinessanditsunderlying basis andperBCEcommonshare(adjustedEPS),respectively. much cashisavailable topay dividendsoncommonshares,repay IFRS. Therefore,itisunlikelytobecomparable tosimilarmeasures in BCE’s consolidated statements of financial position. Weinclude 50% the treatmentbycertaincreditratingagencies. from operatingactivities. funding becausetheyaffectthecomparability ofourfinancialresultsand 116 Adjusted netearnings Severance, acquisitionandothercosts Early debtredemptioncosts Net earningsattributabletocommonshareholders Net mark-to-marketlosses(gains)onderivatives usedtoeconomically Net (gains)lossesoninvestments Impairment ofassets Net earningsfromdiscontinuedoperations

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The following table is a reconciliation of cash flows from operating We definedividend payout ratioasdividends paid oncommonshares Net debt has no directly comparable IFRSNet financial debt has measure, nodirectly but dividend payments. our businessesbecauseitshowsthesustainabilityofcompany’s divided byfreecashflow.Weconsiderdividend payout ratiotobe rather is calculated using several asset and liability categories from rather is calculated using several asset and liability categories from activities tofreecashflowonaconsolidatedbasis. an important indicatorofthefinancialstrengthandperformance the statementsoffinancial position, asshowninthefollowingtable. Acquisition andothercostspaid 50% ofoutstandingpreferredshares Cash from discontinued operations Cash fromdiscontinuedoperations Cash andcashequivalents Cash dividendspaid Cash dividendspaid Capital expenditures Cash flowsfromoperatingactivities Free cashflow Debt duewithinoneyear Net debt Long-term debt (included in cash flows (included incashflows on preferredshares by subsidiariestoNCI from operating activities) 2,498 2,730 TOTAL (226) 345 (46) 85 37 37 2020

PER SHARE (0.05) (0.25) 2.76 0.10 0.04 0.04 0.38 3.02 28,101 23,906 (4,202) 3,348 2,002 2,417 7,754 3,040 3,119 TOTAL (224) (132) (101) 2020 2020 (54) (53) (29) 35 83 39 13 74 2019 PER SHARE 28,153 22,415 (3,974) 3,738 2,002 3,881 7,958 (0.11) (0.03) (145) (147) 3.37 0.10 0.04 0.01 0.08 3.46 2019 2019 (94) (65) 60 These KPIsarenotaccountingmeasuresandmaybecomparable tosimilarmeasurespresentedbyotherissuers. The ratio of adjusted EBITDA to net interest expense does not have The netdebtleverageratiodoesnothaveanystandardizedmeaning ADJUSTED EBITDA TO NET INTEREST EXPENSE RATIOADJUSTED EXPENSE EBITDA INTEREST TO NET DEBT LEVERAGE RATIONET KPI presented by other issuers. We use, and believe that certain investors presented byotherissuers.Weuse,andbelievethatcertaininvestors EBITDA tonetinterestexpenseratioasameasureoffinancialhealth of thecompany. comparable tosimilarmeasurespresentedbyotherissuers.Weuse, under IFRS.Therefore,itisunlikelytobecomparable tosimilarmeasures and believethatcertaininvestorsanalystsuse,theadjusted any standardizedmeaningunderIFRS.Therefore,itisunlikelytobe and analysts use, the net debt leverage ratio as a measure of financial egic imperatives. In additiontothenon-GAAPfinancialmeasuresdescribedpreviously,weuseanumberofKPIsmeasuresuccessourstrategicimperatives. leverage. ABPU Subscriber unit KPI Churn Capital intensity s TV, IPTV, and/orNAS.Asubscriberisincluded inoursubscriberbasewhentheservicehasbeeninstalledandisoperationalat Average billingperuser(ABPU)orsubscriberapproximates theaverageamountbilledtocustomersonamonthlybasis,including DEFINITION Wireless Churn istherateatwhichexistingsubscriberscanceltheirservices.Itameasureofourabilitytoretaincustomers.Wireless Capital expendituresdividedbyoperatingrevenues. fied streams. WirelessblendedABPUiscalculatedbydividingcertaincustomerbillingstheaveragesubscriberbaseforspecified • • period andisexpressedasadollarunitpermonth. period of90 daysfollowingtheexpirysubscriber’s prepaid balance. with auniqueidentifier(typicallyInternationalMobileEquipmentIdentity(IMEI)number),thathasaccesstoourwirelessnetworks. churn iscalculatedbydividingthenumberofdeactivations duringagivenperiodbytheaveragenumberofsubscribersinbase customer premiseandabillingrelationshiphasbeenestablished. Wireline subscriber unit consists of an active revenue-generating unit with access to our services, including retail Internet, satellite satellite Wireline subscriberunitconsistsofanactiverevenue-generatingwithaccesstoourservices,includingretailInternet, We report wirelesssubscriberunitsintwocategories:postpaid andprepaid. Prepaid subscriberunitsareconsideredactivefora Wireless subscriberunitiscomprisedofanactiverevenue-generating(e.g.mobiledevice,tabletorwirelessInternetproducts), monthly billings related to device financing receivables owing from customers on contract, which is used to track our recurring billing whichisusedtotrackourrecurringbilling monthly billingsrelatedtodevicefinancingreceivables owingfromcustomersoncontract, for thespecifiedperiodandisexpressedasapercentagepermonth.

Retail NASsubscribersarebasedonalinecountandrepresentedbyunique telephonenumber IPTVandsatelliteTVsubscribershaveaccesstostand-aloneservices,areprimarilyrepresentedbya Retail Internet, dwelling unit The net debt leverage ratio represents net debt divided by adjusted The netdebtleverageratiorepresentsdividedbyadjusted The adjustedEBITDA tonetinterestexpenseratiorepresentsadjusted flows, plus 50% of declared preferred share dividends as shown in our flows, plus50%ofdeclared preferredsharedividendsas shown in our EBITDA dividedbynetinterestexpense.For thepurposes ofcalculating EBITDA. For the purposes ofcalculatingournetdebtleverageratio, our adjustedEBITDA tonetinterestexpenseratio, adjustedEBITDA is month trailing net interest expense as shown in our statements of cash month trailingnetinterestexpenseasshowninourstatementsofcash adjusted EBITDA istwelve-monthtrailingadjustedEBITDA. income statements. twelve-month trailingadjustedEBITDA. Netinterestexpenseistwelve- BCE In c . 2020Annu a l R e po r t

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MD&A  Financial measures, accounting policies and controls MD&A  Financial measures, accounting policies and controls 10.3 INTERNAL CONTROL OVER FINANCIAL REPORTING DISCLOSURE PROCEDURES AND CONTROLS CHANGES IN INTERNALCHANGES CONTROL OVER FINANCIAL REPORTING Our disclosurecontrolsandproceduresaredesignedtoprovide purposes inaccordancewithIFRSasissuedbytheIASB.However, provide reasonableassuranceregardingthereliabilityoffinancial periods specified under those laws, and include controls and procedures No changesweremadeinourinternalcontroloverfinancialreporting duringtheyearendedDecember 31, 2020 thathavemateriallyaffected, National Instrument 52-109. Our internal control over financial reporting Management isresponsible forestablishingandmaintainingadequate Executive Vice-PresidentandChiefFinancialOfficer(CFO),toallow effected by the Board, management and other personnel of BCE, to effected bytheBoard,managementandotherpersonnelofBCE,to or are reasonably likely to materially affect, ourinternalcontroloverfinancialreporting. or arereasonablylikelytomateriallyaffect, communicated to management, includingBCE’s PresidentandCEO communicated tomanagement, under theU.S. us inreports filedorsubmittedunderCanadianandU.S.securities reporting maynotpreventordetectmisstatementsonatimelybasis. because ofitsinherentlimitations,internalcontroloverfinancial reporting and thepreparation of financialstatements forexternal reasonable assurancethatinformationrequiredtobedisclosedby laws isrecorded,processed,summarizedandreported withinthetime is a process designed under the supervision of the CEO and CFO, and is aprocessdesignedunderthesupervisionofCEOandCFO, internal controloverfinancialreporting, asdefinedin Rule13a-15(f) timely decisionsregardingrequireddisclosure. that aredesignedtoensuretheinformationisaccumulatedand 118

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BCE In ffectiveness of internal controls internal of ffectiveness E c . 2020Annu , as amended, and under Securities ExchangeActof1934,asamended,andunder a l R e po r t Annual andInterimFilings As atDecember 31, 2020,managementevaluated, underthesupervision Commission (COSO). participation oftheCEOandCFO,effectivenessourinternal Management evaluated, underthesupervisionofandwith Based on that evaluation, the CEOandCFOconcludedthatourdisclosure National Instrument52-109 – Based onthatevaluation, theCEOandCFOconcludedthatourinternal criteria establishedin control overfinancialreporting asatDecember 31, 2020,basedonthe controls andprocedureswereeffectiveasatDecember 31, 2020. of ourdisclosurecontrolsandprocedures,asdefinedin Rule 13a-15(e) of andwiththeparticipation oftheCEOandCFO,effectiveness control over financial reporting was effective as at December 31, 2020. under theU.S. issued bytheCommitteeofSponsoring OrganizationsoftheTreadway , as amended, and under Securities ExchangeActof1934,asamended,andunder Internal Control–IntegratedFramework (2013) . Certification of Disclosure in Issuers’ Certification ofDisclosureinIssuers’

Reports on internal controls internal on Reports The managementofBCE Inc. (BCE)isresponsible forestablishingand 2020, based on the criteria established in MANAGEMENT’S REPORT ON INTERNAL ON MANAGEMENT’S REPORT CONTROL OVER FINANCIAL REPORTING Framework (2013) participation ofthePresidentandChiefExecutiveOfficer projections ofanyevaluation oftheeffectivenessinternalcontrol Due toitsinherentlimitations,internalcontroloverfinancialreporting Executive Vice-President andChief Financial Officer, theeffectiveness Management evaluated, underthesupervisionofandwith Executive Vice-PresidentandChiefFinancialOfficereffectedbythe of theTreadway Commission(COSO). of ourinternalcontroloverfinancialreporting asatDecember 31, deteriorate. or thatthedegreeofcompliancewithpolicies orproceduresmay controls maybecomeinadequatebecauseofchangesinconditions, over financial reporting tofutureperiods are subject to the risk that the may notpreventordetectmisstatementsonatimelybasis.Also, and thepreparation offinancialstatementsforexternalpurposes in reasonable assuranceregardingthereliabilityoffinancialreporting board ofdirectors,management andotherpersonnelofBCE,toprovide maintaining adequateinternalcontroloverfinancialreporting. Our accordance withInternationalFinancialReporting Standards(IFRS)as issued bytheInternationalAccountingStandardsBoard(IASB). internal controloverfinancialreporting isaprocessdesignedunder the supervision of the President and Chief Executive Officer and the the supervisionofPresidentandChiefExecutiveOfficer issuedbytheCommitteeofSponsoring Organizations Internal Control – Integrated Internal Control –Integrated Senior Vice-President, ControllerandTaxSenior Vice-President, Executive Vice-PresidentandChiefFinancialOfficer President andChiefExecutiveOfficer Our internalcontroloverfinancialreporting asatDecember 31, 2020 has firm, who also audited our consolidated financial statements for the year firm, whoalsoauditedourconsolidatedfinancialstatementsfortheyear March 4, 2021 December 31, 2020. There were no material weaknesses that have 2020.Therewerenomaterialweaknessesthathave December 31, Based onthatevaluation, thePresidentandChiefExecutiveOfficer (signed) ThierryChaumont (signed) GlenLeBlanc (signed) Mirko Bibic on theeffectivenessofourinternalcontroloverfinancialreporting as ended December 31, 2020.DeloitteLLPissuedanunqualifiedopinion been auditedbyDeloitteLLP, independentregisteredpublicaccounting reporting asatDecember 31, 2020. been identifiedbyBCE’s management ininternalcontroloverfinancial at December 31, 2020. that ourinternalcontroloverfinancialreporting waseffectiveasat the ExecutiveVice-PresidentandChiefFinancialOfficerconcluded

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Reports on internal controls Reports on internal controls Those standards require that we plan and perform the audit to obtain Those standardsrequirethatweplanandperformtheaudittoobtain The Company’s managementisresponsible formaintainingeffective To theShareholders andtheBoardofDirectorsBCE Inc. 2021, expressedanunqualifiedopiniononthosefinancialstatements. Control – IntegratedFramework (2013) REPORT INDEPENDENT OF REGISTERED PUBLIC ACCOUNTING FIRM BASIS FOROPINION OVER FINANCIALREPORTING OPINION ONINTERNALCONTROL U.S. federalsecuritieslawsandtheapplicable rulesandregulationsof we considered necessary in the circumstances. We believe that our we considerednecessaryinthecircumstances.Webelievethatour Company AccountingOversight Board(UnitedStates)(PCAOB),the Commission (COSO).Inouropinion,theCompany maintained,inall financial reporting wasmaintainedinallmaterialrespects.Ouraudit public accounting firm registered with the PCAOB and are required to public accountingfirmregisteredwiththePCAOBandarerequiredto We conducted our audit in accordance with the standards of the PCAOB. We conductedourauditinaccordancewiththestandardsofPCAOB. We haveauditedtheinternalcontroloverfinancialreporting ofBCE Inc. We have also audited, in accordance with the standards of the Public We havealsoaudited,inaccordancewiththestandardsofPublic Reporting. Ourresponsibility istoexpressanopinionontheCompany’s 2020, of the Company and our report dated March 4, December 31, criteria establishedin evaluating thedesignandoperatingeffectiveness ofinternalcontrol effectiveness ofinternalcontroloverfinancialreporting, includedinthe consolidated financialstatementsasatandfortheyearended based ontheassessedrisk, andperformingsuchotherproceduresas reporting, assessing the risk that a material weakness exists, testingand be independentwithrespecttotheCompany inaccordancewiththe accompanying Management’s Report onInternalControloverFinancial 2020,basedoncriteriaestablishedin as ofDecember 31, and subsidiaries(the“Company”) asofDecember 31, 2020,basedon reasonable assurance about whether effective internal control over reasonable assuranceaboutwhethereffectiveinternalcontrolover material respects,effectiveinternalcontroloverfinancialreporting audit providesareasonablebasisforouropinion. included obtaining an understanding of internal control over financial included obtaining an understanding of internal controlover financial a Weare internal controloverfinancialreporting basedonouraudit. issued bytheCommitteeofSponsoring OrganizationsoftheTreadway internal controloverfinancialreporting andforitsassessmentofthe the SecuritiesandExchangeCommissionPCAOB. 120

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BCE In c . 2020Annu a l R Internal Control–IntegratedFramework (2013) e po r t issuedbyCOSO.

Internal Internal

/s/ DeloitteLLP A company’s internal control over financial reporting is a process CONTROL OVERFINANCIALREPORTING DEFINITION ANDLIMITATIONS OFINTERNAL Chartered ProfessionalAccountants permit preparation of financial statements in accordance with generally principles. A company’s internal control over financial reporting includes procedures maydeteriorate. March 4, 2021 Montréal, Canada Because ofitsinherentlimitations,internalcontroloverfinancial external purposes inaccordancewithgenerallyacceptedaccounting of financialreporting andthepreparation offinancialstatementsfor designed to provide reasonable assurance regarding the reliability of anyevaluation ofeffectivenesstofutureperiodsaresubject reasonable assurance that transactions are recorded as necessary to reasonable assurancethattransactionsarerecordedasnecessaryto inreasonabledetail,accuratelyandfairlyreflectthe records that, reporting maynotpreventordetectmisstatements.Also, projections management anddirectorsofthecompany; and(3)providereasonable accepted accounting principles, and that receipts and expenditures of accepted accounting principles, and that receipts and expenditures of a materialeffectonthefinancialstatements. acquisition, use,ordisposition ofthecompany’s assetsthatcouldhave assurance regardingpreventionortimelydetectionofunauthorized in conditions, orthat the degree ofcompliance withthe policies or the company authorizations of accordance with in being madeonly are transactions anddispositions oftheassetscompany; (2)provide those policies andproceduresthat(1)pertaintothemaintenanceof the risk that controls may become inadequate because of changes the risk that controlsmaybecomeinadequatebecause of changes

Consolidated financial statements The financialstatementsandalloftheinformationinthisannualreport These financialstatementsformthebasisforallof Accounting Firm,haveauditedthefinancialstatements. MANAGEMENT’S RESPONSIBILITY FOR FINANCIAL REPORTING MANAGEMENT’S RESPONSIBILITY with employees about policies for ethical business conduct. Management Management with employeesaboutpolicies for ethicalbusinessconduct. with InternationalFinancialReporting Standards(IFRS)asissuedby position, resultsofoperationsandcashflows. Management has a system of internal controls designed to provide Management has a system of internal controls designed to provide Management hasprepared thefinancialstatementsinaccordance our financialrecordsarereliableandformaproperbasisforpreparing group thatreports totheAuditCommittee,andincludescommunication complete inallmaterialrespects.Thisissupported byaninternalaudit directors isresponsible forensuringthatmanagementfulfillsitsfinancial reasonable assurance that the financial statements are accurate and reasonable assurancethatthefinancialstatementsareaccurateand believes that the internal controls provide reasonable assurance that believes thattheinternalcontrolsprovidereasonableassurance reflected inthe financialstatementsandnotes. Managementbelieves management hasmadecertainestimatesandassumptionsthatare reporting responsibilities. DeloitteLLP, IndependentRegisteredPublic been reviewedandapproved bytheboardofdirectors.The (BCE)andhave are theresponsibility ofthemanagementBCE Inc. information thatappears inthisannualreport. for andsafeguarded. the financialstatements,andthatourassetsareproperlyaccounted that thesefinancialstatementsfairlypresentBCE’s consolidated financial the InternationalAccountingStandardsBoard.Undertheseprinciples, The internal auditors and the shareholders’ auditors have free and The internalauditorsandtheshareholders’ auditorshavefreeand The boardofdirectorshasappointed anAuditCommittee,whichis Senior Vice-President, ControllerandTaxSenior Vice-President, Executive Vice-PresidentandChiefFinancialOfficer President andChiefExecutiveOfficer Committee’s otherresponsibilities onpage 170ofthisannualreport. March 4, 2021 (signed) ThierryChaumont (signed) GlenLeBlanc (signed) Mirko Bibic board ofdirectorsforapproval. You willfindadescriptionoftheAudit responsibilities includereviewingthefinancialstatementsandother made up of unrelated and independent directors. The Audit Committee’s independent accesstotheAuditCommittee. andrecommending themtothe information inthisannualreport,

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Consolidated fi nancial statements Consolidated fi nancial statements To theShareholders andtheBoardofDirectorsBCE Inc. 2020, basedoncriteriaestablishedin 2020, in conformity with International Financial Reporting Standards 2020, andtherelatednotes(collectivelyreferredtoas“financial REPORT INDEPENDENT OF REGISTERED PUBLIC ACCOUNTING FIRM Framework (2013) statements”). In our opinion, the financial statements present fairly, statements”). Inouropinion,thefinancialstatementspresentfairly, statements, statementsofcomprehensiveincome,changesinequity,and OPINION ONTHEFINANCIALSTATEMENTS Company’s internalcontroloverfinancialreporting asofDecember 31, Company AccountingOversight Board(UnitedStates)(PCAOB),the financial position of BCE Inc. andsubsidiaries(the“Company”) as financial position ofBCE Inc. We haveauditedtheaccompanying consolidatedstatementsof We have also audited, in accordance with the standards of the Public We havealsoaudited,inaccordancewiththestandardsofPublic December 31, 2020 and 2019, and its financial performance and its and 2019, and its financial performance and its December 31, 2020 over financialreporting. expressed anunqualifiedopinionontheCompany’s internalcontrol 2021, of the Treadway Commission and our report dated March 4, cash flowsforeachofthetwoyearsinperiodendedDecember 31, cash flowsforeachofthetwoyearsinperiodendedDecember 31, at December 31, 2020 and2019,therelatedconsolidatedincome at December 31, 2020 as issuedbytheInternationalAccountingStandardsBoard. in allmaterialrespects,thefinancial position oftheCompany asat 122

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BCE In c . 2020Annu issuedbytheCommitteeofSponsoring Organizations a l R e po r t Internal Control – Integrated Internal Control–Integrated These financial statements are the responsibility of the Company’s Securities andExchangeCommissionthePCAOB. BASIS FOROPINION Company’s financial statements based on our audits. We are a public provide areasonablebasisforouropinion. presentation ofthefinancialstatements.Webelievethatouraudits procedures included examining, on a test basis, evidence regarding procedures includedexamining,onatestbasis,evidenceregarding We conducted our audits in accordance with the standards of the We conductedourauditsinaccordancewiththestandardsof PCAOB. Those standards require that we plan and perform the audit to PCAOB. Thosestandardsrequirethatweplanandperformtheauditto obtain reasonable assurance about whether the financial statements obtain reasonableassuranceaboutwhetherthefinancialstatements estimates made by management, aswellevaluating theoverall estimates madebymanagement, misstatement of the financial statements, whether due to error or misstatement ofthefinancialstatements,whetherduetoerroror Ourresponsibility istoexpressanopiniononthe management. accounting firm registered with the PCAOB and are required to be also includedevaluating theaccountingprinciplesusedandsignificant audits included performing procedures to assess the risks of material audits includedperformingprocedurestoassesstherisksofmaterial whetherduetoerrororfraud.Our are freeofmaterialmisstatement, independent withrespecttotheCompany inaccordancewiththeU.S. federal securitieslawsandtheapplicable rulesandregulationsofthe the amounts and disclosures in the financial statements. Our audits the amountsanddisclosuresinfinancialstatements.Ouraudits fraud, and performing procedures that respond to those risks. Such Refer to Notes 8, 18 and 21 to the financial statements 21 to financial 8, 18 and the to Notes Refer – Group Media –Bell Assets Intangible and Goodwill The critical audit matter communicated below is a matter arising from the The criticalauditmattercommunicatedbelowisaarisingfromthe statements and(2)involved ourespeciallychallenging,subjective,or significant impact ontherecoverableamountofBellMedia,resulting CRITICAL AUDITMATTER DESCRIPTION CRITICAL AUDITMATTER was animpairment forintangibleassets. with the highest degree of subjectivity and impact, are the forecasts aretheforecasts with thehighestdegreeofsubjectivityandimpact, Given the significant judgments made by management, regarding the regardingthe Given thesignificantjudgmentsmadebymanagement, Goodwill andindefinite-lifeintangibleassets(specificallybroadcast perpetuity When testing goodwill for Bell Media, while there are several assumptions When testinggoodwillforBellMedia,whilethereareseveralassumptions has determinedthattherewasnoimpairment ofgoodwillandthere of audit effort, whichincludedtheneedtoinvolve fairvalueof auditeffort, specialists. declines inadvertisingrevenue,lowersubscriberrevenuesandoverall complex judgments. The communication of critical audit matters does or requiredtobecommunicatedtheauditcommitteeandthat(1) current-period auditofthefinancialstatementsthatwascommunicated discount rates and perpetuity of futureoperatingperformance,determinationEBITDA multiples, of auditor judgment was required and resulted in an increased extent of auditorjudgmentwasrequiredandresultedinanincreasedextent multiples, discountratesand are forecasts of future operating performance, discount rates and assets, thejudgmentswithhighestdegreeofsubjectivityandimpact be impaired. During the second quarter of 2020, Bell Media identified are testedannuallyorwhenthereisanindicationthattheassetmay below, providingaseparate opiniononthecriticalauditmatteror bycommunicatingthecriticalauditmatter a whole,andwearenot, not alterinanywayouropiniononthefinancialstatements,takenas relates toaccountsordisclosuresthatarematerialthefinancial licenses) for the Bell Media group of cash generating units (“Bell Media”) licenses) for the Bell Media group of cash generating units (“Bell Media”) in animpairment chargetogoodwillorintangibleassetsasrequired. impairment of goodwill and intangible assets for Bell Media, management impairment ofgoodwillandintangibleassetsforBellMedia,management impaired. Asaresultofthesecondquarterandannualassessments increases indiscountratesasindicatorsthatcertainassetsmaybe forecasts offutureoperatingperformance,determinationEBITDA the judgments that are required to determine the recoverable amount, the accountsordisclosurestowhichitrelates. growth rates. Changes in these assumptions could have a growth rates.Changesintheseassumptionscouldhavea perpetuity growth rates. When testing intangible growth rates. Whentesting intangible growth rates, a high degree growth rates,ahighdegree

• • • • /s/ DeloitteLLP IN THEAUDIT HOW THECRITICALAUDITMATTER WASADDRESSED Chartered ProfessionalAccountants Our auditproceduresrelatedtoforecastsoffutureoperating perpetuity performance, determinationofEBITDA multiples,discountrates,and We haveservedastheCompany’s auditorsince1880. March 4, 2021 Montréal, Canada recoverable amountsforBellMediaincludedthefollowing,amongothers:

• • • • • • • performance by comparing actual results to management’s historical perpetuity With theassistanceoffairvalue specialists,evaluated the Evaluated thereasonablenessofmanagement’s forecastsoffuture Evaluated management’s abilitytoaccuratelyforecastfutureoperating Evaluated the effectiveness of controls over the assessment of operating performancebycomparing theforecaststo: of theEBITDA multiples,discountratesand includingthoseover goodwill andintangibleassetsforimpairment, reasonableness ofthe(1)EBITDA multiples,(2)discountrates,and(3) forecasts. the forecastsoffutureoperating performance, andthedetermination

Testing the source information underlying the determination of the Testing thesourceinformationunderlyingdeterminationof Analyst andindustryreports fortheCompany andcertainofits selected bymanagement. selected EBITDA multiples,discount rates,and peer companies, andotherrelevant publiclyavailable information; Developing a range of independent estimates and comparing those Reviewing relevant internal and external information, including Known changesinBellMedia’s operationsortheindustry inwhich Historical operatingperformance; discount rates; are expectedtoimpact futureoperatingperformance; analyst and industry reports, to assess the reasonability of the Internal communications to management and the Board of Directors. it operates,includingtheimpact oftheCOVID-19 pandemic, which to theEBITDA multiples,discountrates,and growth rates used bymanagement to determine the growth ratesby:

BCE In perpetuity perpetuity c perpetuity . 2020Annu growth rates. growth rates growth rates growth rates; a l R e po r t

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Consolidated fi nancial statements Consolidated fi nancial statements CONSOLIDATED INCOME STATEMENTS 124 Amortization Severance, acquisitionandothercosts (IN MILLIONSOFCANADIANDOLLARS,EXCEPTSHAREAMOUNTS) FOR THEYEARENDEDDECEMBER31 Operating costs Other (expense)income Finance costs Depreciation Operating revenues Weighted averagenumberofcommonsharesoutstanding–basic(millions) Income taxes Impairment ofassets Net earnings Net earningsattributableto: Net earningsfromcontinuingoperations Net earningspercommonshare–basicanddiluted Net earningspercommonshare–basicanddiluted Net earningsfromcontinuingoperationsattributableto: Net earnings Net earningsfromdiscontinuedoperations Net earningsfromcontinuingoperations

Common shareholders Continuing operations Common shareholders Preferred shareholders Discontinued operations Preferred shareholders Interest expense Non-controlling interest Interest onpost-employment benefitobligations Non-controlling interest |

BCE In c . 2020Annu a l R e po r t 8, 16,18 NOTE 4, 5 35 26 10 16 18 11 6 9 3 3 4 7 (13,276) 22,883 (1,110) (3,475) 904.3 2,498 2,473 2,699 2,272 2,699 2,473 (792) (194) (472) (929) (116) 2.76 0.25 2.51 136 136 226 2020 (46) 65 65 (13,787) 23,793 (1,125) (3,458) (1,129) 900.8 3,040 3,224 3,253 3,011 3,253 3,224 (102) (886) (114) 3.37 0.03 3.34 151 151 2019 (63) 62 95 62 29 CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME Total comprehensive incomeattributableto: Total comprehensive income Total comprehensive income (IN MILLIONSOFCANADIANDOLLARS) FOR THEYEARENDEDDECEMBER31 Other comprehensiveincomefromcontinuingoperations,netoftaxes Other comprehensiveincomefromcontinuingoperations Net earningsfromdiscontinuedoperationsattributabletocommonshareholders Net earningsfromcontinuingoperations Common shareholders Preferred shareholders Non-controlling interest Items that will be subsequently reclassifiedtonetearnings Items thatwillbesubsequently Items thatwillnotbereclassifiedtonetearnings Actuarial gainsonpost-employment benefitplans,netofincometaxes($184)million Net changeinvalue ofderivatives designatedascashflowhedges,netofincometaxes Net changeinvalue ofderivatives designatedascashflowhedges,netofincometaxes Net changeinvalue ofpublicly-tradedandprivately-held investments,netofincometaxes of nil and $9millionfor2020and2019,respectively of $12 million and($45)millionfor20202019,respectively of nil for2020and2019 and ($51) millionfor2020and2019,respectively

NOTE 35 26 BCE In 2,953 3,153 3,153 2,473 136 226 503 454 2020 c (33) (15) 64 . 2020Annu (1) a l R e po 3,277 3,486 3,486 3,224 151 140 233 112 r 2019 (25) t 29 58

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Consolidated fi nancial statements Consolidated fi nancial statements CONSOLIDATED STATEMENTS FINANCIAL OF POSITION 126 Total assets Total liabilitiesandequity Total currentassets Total liabilities Total equityattributabletoBCEshareholders Total non-current assets Total equity Total non-currentliabilities Total current liabilities ASSETS (IN MILLIONSOFCANADIANDOLLARS) Current liabilities Commitments andcontingencies Current assets Equity attributabletoBCEshareholders EQUITY Non-controlling interest Non-current assets Non-current liabilities LIABILITIES

Trade payables andother liabilities Trade andotherreceivables Accumulated othercomprehensiveincome Contract assets Current taxliabilities Contributed surplus Contract costs Contract assets Common shares Contract liabilities Contract liabilities Goodwill Cash equivalents Contract costs Cash Debt duewithinoneyear Other currentassets Deficit Post-employment benefitassets Property, plantandequipment Prepaid expenses Dividends payable Other non-currentliabilities Post-employment benefitobligations Other non-currentassets Deferred taxassets Deferred taxliabilities Preferred shares Intangible assets Interest payable Inventory Long-term debt Investments inassociatesandjointventures |

BCE In c . 2020Annu a l R e po r t NOTE 20 35 26 26 33 29 29 29 23 24 22 27 10 10 16 19 18 15 15 13 14 14 14 14 12 21 DECEMBER 31,2020 60,665 60,665 39,336 20,989 54,977 21,329 31,065 13,102 27,513 20,390 23,906 10,604 (4,681) 5,688 3,528 1,174 4,003 1,145 1,962 3,810 8,271 2,417 3,935 1,001 1,277 214 199 209 766 103 756 106 362 256 402 687 439 340 242 222 717 224 – DECEMBER 31,2019 60,146 60,146 38,738 21,074 54,626 21,408 28,961 13,352 27,636 20,363 22,415 10,667 (4,632) 5,520 3,038 1,178 4,004 1,907 3,561 9,777 3,881 3,954 1,111 303 190 194 729 161 698 368 533 415 427 334 207 227 683 871 716 558 141 98 4 CONSOLIDATED STATEMENTS IN EQUITY CHANGES OF Total comprehensive income Total comprehensive(loss)income Adoption ofIFRS16 Settlement of cash flow hedges ofcashflowhedges Settlement Common shares issued under Common sharesissuedunder Common shares issued under Common sharesissuedunder Settlement of cash flow hedges ofcashflowhedges Settlement (IN MILLIONSOFCANADIANDOLLARS) FOR THEYEARENDEDDECEMBER31,2019 (IN MILLIONSOFCANADIANDOLLARS) FOR THEYEARENDEDDECEMBER31,2020 Common shares issued under Common sharesissuedunder Balance atDecember31,2020 Other Other comprehensive income (loss) Other comprehensiveincome(loss) Dividends declared by subsidiaries Dividends declaredbysubsidiaries Balance atDecember31,2019 Dividends declaredbysubsidiaries Other comprehensive (loss) income Other comprehensive(loss)income Other Balance atJanuary1,2019 Dividends declared on BCE common Dividends declaredonBCEcommon Dividends declared on BCE common Dividends declaredonBCEcommon Other share-basedcompensation Repurchase ofpreferredshares Other share-basedcompensation Balance atDecember31,2018 Balance atDecember31,2019 Net earnings Net earnings employee stockoptionplan employee stockoptionplan of hedged items of hedged items employee savingsplan(ESP) and preferredshares and preferredshares transferred to the cost basis transferred tothecostbasis to non-controllinginterest to non-controllinginterest from continuingoperations from continuingoperations transferred to the cost basis transferred tothecostbasis

NOTE NOTE 29 29 29 29 29 29 2 PREFERRED PREFERRED SHARES SHARES 4,004 4,004 4,004 4,004 4,003 (1) – – – – – – – – – – – – – – – – – – – – COMMON COMMON 20,363 20,036 20,036 20,363 20,390 SHARES SHARES 251 75 27 1 – – – – – – – – – – – – – – – – – ATTRIBUTABLE TOBCESHAREHOLDERS ATTRIBUTABLE TOBCESHAREHOLDERS SURPLUS SURPLUS CONTRI- CONTRI- 1,178 1,170 1,170 1,178 1,174 BUTED BUTED (11) 19 (3) (1) – – – – – – – – – – – – – – – – – HENSIVE HENSIVE COMPRE- COMPRE- INCOME INCOME ULATED ULATED ACCUM- ACCUM- OTHER OTHER 161 161 103 (10) (48) (48) (26) 97 97 90 90 – – – – – – – – – – – – – – – (4,632) (3,147) (3,008) (4,956) (4,632) (4,681) (4,937) DEFICIT DEFICIT 3,331 3,137 3,191 2,634 140 503 (19) (35) (4) 1 – – – – – – – – – 21,074 20,344 21,074 20,989 20,363 (3,147) (3,008) 3,428 3,089 3,191 2,634 TOTAL TOTAL 237 455 240 (10) (19) (26) (38) 21 75 26 (4) (1) BCE In – – – c . 2020Annu CONTROL- CONTROL- INTEREST INTEREST 334 325 334 340 326 LING LING NON- NON- (53) (64) 58 64 15 62 65 (5) (4) (1) (1) – – – – – – – – – – a l R e 21,408 20,669 21,408 21,329 20,689 (3,147) (3,008) po 3,486 3,153 3,253 2,699 EQUITY EQUITY TOTAL TOTAL 233 454 240 r (10) (53) (64) (20) (26) (38) 15 21 75 26 t (9) (1)

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Consolidated fi nancial statements Consolidated fi nancial statements CONSOLIDATED STATEMENTS FLOWS CASH OF 128 Adjustments to reconcile net earnings from continuing operations to cash flows Adjustments toreconcilenetearningsfromcontinuingoperationscashflows (IN MILLIONSOFCANADIANDOLLARS) FOR THEYEARENDEDDECEMBER31 Cash flowsusedininvestingactivities Cash equivalents atendofyear Cash equivalents atbeginningofyear Cash flowsusedinfinancingactivities Cash flowsfromoperatingactivities Cash atendofyear Cash atbeginningofyear Cash flowsusedinfinancingactivities Cash flowsusedininvestingactivities Cash flowsfromoperatingactivities Net (decrease)increaseincashequivalents Net increase(decrease)incash Net earningsfromcontinuingoperations

Acquisition ofspectrumlicences Acquisition andothercostspaid Severance andothercostspaid Severance, acquisitionandothercosts Cash usedindiscontinuedoperations Capital expenditures Cash from(usedin)discontinuedoperations Gains oninvestments Cash dividendspaid bysubsidiariestonon-controllinginterest Cash dividendspaid onpreferredshares Cash dividendspaid oncommonshares Cash fromdiscontinuedoperations Contributions topost-employment benefitplans Other financingactivities Other investingactivities Depreciation andamortization Decrease innotespayable Repayment oflong-termdebt Payments underotherpost-employment benefitplans Post-employment benefitplanscost Purchase of shares for settlement ofshare-basedpayments Purchase ofsharesforsettlement Business acquisitions Income taxes Impairment ofassets Issue oflong-termdebt Increase insecuritizedtradereceivables Issue ofcommonshares Net changeinoperatingassetsandliabilities Income taxespaid (netofrefunds) Interest paid Net interestexpense from operatingactivities |

BCE In c . 2020Annu a l R e po r t

NOTE 16, 18 30 26 26 26 29 24 24 10 6 9 8 3 3 3 4 (3,540) (1,641) (2,975) (5,003) (4,202) (1,112) (4,135) 7,754 1,087 6,006 4,404 2,473 (132) (263) (297) (846) 224 141 473 792 472 315 116 892 2020 (93) (79) (53) (86) (65) (35) (78) (61) 26 54 83 (4) (7) (3) 4 – – (4,036) (1,073) (2,819) (2,221) (3,974) (1,079) (4,202) 7,958 1,101 1,954 4,344 1,129 3,224 (147) (142) (290) (284) (725) (167) 141 425 102 309 114 131 240 2019 (54) (65) (51) (60) (48) (72) (18) (18) 94 (6) 7 4 4 – – Notes to consolidated to Notes financial statements The results of subsidiaries acquired during the year are consolidated The results of subsidiaries acquired during the year are consolidated The financialstatementswereprepared inaccordance withInternational Note 2 Note 1 Accounting Standards Board (IASB). The financial statements have Accounting StandardsBoard(IASB).Thefinancialstatementshave Subsidiaries are entities we control, where control is achieved when Subsidiaries areentitieswecontrol,wherecontrolisachievedwhen We, EVENUE FROM CONTRACTS WITH CUSTOMERS WITH EVENUE FROM CONTRACTS C) CONSOLIDATION OF ASIS B) PRESENTATION OF ASIS A) services when they are separately identifiable andthe customer can service offers with the same range of services, adjusted for market service offerswith thesamerangeofservices,adjusted formarket separately withoutaservice contractandpricesfornon-bundled selling pricesbasedontheobservable pricesatwhichwesellproducts wireless, wireline, Internet and television (TV) services to residential, wireless, wireline,Internetandtelevision(TV)servicestoresidential, we collectonbehalfofthirdparties. Werecognizerevenuewhencontrol Canada. BCEisatelecommunicationsandmediacompany providing We consolidatethefinancialstatementsofalloursubsidiaries. For bundledarrangements,weaccountforindividual productsand Revenue ismeasuredbasedonthevalue oftheexpectedconsiderationin Financial Reporting Standards (IFRS), as issued by the International BCE isincorporated and domiciled in Canada. BCE’s head office is on its stand-alone selling price. We generally determine stand-alone on itsstand-alonesellingprice.We generallydeterminestand-alone each productorserviceincludedin the contractwithcustomerbased of aproductorserviceistransferredtocustomer. Whenourright during theyeararedeconsolidatedfromdateofdisposal. Where conditions andother factors,asappropriate. Whensimilarproducts benefit from the product or service on its own or with other readily benefit fromtheproductorservice onitsownorwithotherreadily recognize revenueintheamounttowhichwehavearightinvoice. necessary, adjustmentsaremadetothefinancialstatementsof been prepared onahistoricalcostbasis,exceptforcertainfinancial business andwholesalecustomersinCanada.OurBellMediasegment available resources. The totalarrangement consideration is allocated to a contract with a customerand excludes sales taxes and other amounts affecttheinvestee’sactivities oftheinvesteethatsignificantly returns. accounting policies. and servicesare notsoldseparately, we usetheexpectedcostplus joint arrangementsandassociates. located at1,CarrefourAlexander-Graham-Bell,Verdun,Québec, instruments thataremeasuredatfairvalue asdescribedinour involvement withtheinvesteeandhascurrentabilitytodirect to the customer of the products and services transferred to date, we to thecustomerofproductsandservicestransferreddate,we withthevalueto considerationfromacustomercorresponds directly from thedateofacquisitionandresultssubsidiariessold the company is exposed orhasthe right tovariable returnsfromits

us, R B B our,

BCE andthecompany mean,asthecontextmayrequire,eitherBCE Inc. or, collectively,BCE Inc., BellCanada,theirsubsidiaries, | | orporate information ignificant accounting ignificant policies C S The financialstatementsarepresentedin Canadian dollars,the A contract liability is recognized in the statements of financial position A contractassetisrecognizedintheconsolidatedstatements of All intercompany transactions,balances,incomeandexpensesare All amountsareinmillionsofCanadiandollars,exceptwherenoted. FUNCTIONAL CURRENCY we retainasrevenues. when wereceive considerationinadvance ofthetransfer products who provide services to our customers.When we act as the principal Changes in our ownership interest in a subsidiary that do not result in a Changes inourownershipinterestasubsidiarythatdonotresult Contract assetsaretransferredto tradereceivables whenourright financial position (statementsoffinancialto position)whenourright financial statements(financialstatements)were approved byBCE’s provides conventional TV, specialty TV, pay TV, streaming services, We mayenterintoarrangementswithsubcontractorsandothers (OOH) advertising services to customers in Canada. The consolidated (OOH) advertisingservicestocustomersinCanada.Theconsolidated digital media services, radio broadcasting services and out-of-home digital mediaservices,radiobroadcastingservicesandout-of-home or servicestothe customer. Contractassetsandliabilities relatingto of non-controllinginterest(NCI)andtheconsiderationpaid orreceived operations. Anydifferencebetweenthechangeincarryingamount on netearningsorOthercomprehensiveincomefromcontinuing eliminated onconsolidation. company’s functionalcurrency. consideration from the transfer of products or services to a customer consideration fromthetransferof productsorservicestoacustomer billed to our customers. Otherwise, we recognize the net amount that billed toourcustomers.Otherwise,werecognizethenetamountthat acquired subsidiaries to conform their accounting policies to ours. board ofdirectorsonMarch 4, 2021. and services purchased by a customer in excess of those included in and servicespurchasedbyacustomerin excess ofthoseincluded in margin approach todeterminestand-alonesellingprices.Products loss of control are accounted for as equity transactions, with no effect loss ofcontrolareaccountedforasequitytransactions,withnoeffect in these arrangements, we recognize revenues based on the amounts in thesearrangements,werecognizerevenuesbasedontheamounts is attributedtoowner’s equity. is conditional on our obligation to transfer other products or services. is conditionalonourobligation to transferother products or services. the samecontract arepresentedonanetbasis. to considerationbecomesconditional onlyastothepassage oftime. the bundledarrangementareaccountedforseparately. BCE In c . 2020Annu a l R e po r t

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Notes to consolidated fi nancial statements Notes to consolidated fi nancial statements Additional RSUs/PSUs are issued to reflect dividends declared on the Additional RSUs/PSUs are issued to reflect dividends declared on the RE-BASED PAYMENTS D) stock options, based on the number of stock options that are expected stock options,basedonthenumberofoptionsthatareexpected value of a BCE common share at the date of grant and based on the value of aBCEcommonshareatthedateofgrantandbasedon RSU STOCK OPTIONS WIRELESS SEGMENTREVENUES wireless service revenues over time, as the services are provided. For Our share-basedpayment arrangementsincludestockoptions, Our Wirelesssegmentprincipally generatesrevenuefromproviding financing component, financing component, period andpattern oftransfertothecustomerrelatedproducts We credit contributed surplus for stock option expense recognized over We creditcontributedsurplusforstockoptionexpenserecognized over We useafairvalue-based method tomeasurethecostofouremployee We recognizeproductrevenuesfromthesaleofwirelesshandsetsand For each RSU/PSU granted, we recognize compensation expense For wireless products and services that are sold separately, customers common shares. capital for the amount received and the amounts previously credited capital fortheamountreceivedandamountspreviouslycredited of thenumberstockoptionsthatareexpectedtovest. expense isadjustedforsubsequentchangesinmanagement’s estimate consolidated incomestatements(incomestatements).Compensation deferred shareplan(DSP). deferred shareunits(DSUs),anemployeesavingsplan(ESP)anda over acontract term of upto24 months forresidentialcustomersand Werecognize devices whenacustomertakespossession oftheproduct. or services. costs areamortizedonasystematicbasisthatisconsistentwiththe costs ofobtainingacontractareimmediatelyexpensed.Capitalized except where the amortization period is one year or less, in which case comprised ofsalescommissionsandprepaid contractfulfillmentcosts, up to 36 months for business customers. If they include a significant forbusinesscustomers.Ifthey include asignificant up to36 months usually pay infullatthepoint ofsaleforproductsandonamonthly using observable pricesadjustedformarketconditionsandother basis forservices.For wirelessproductsandservicessoldinbundled restricted shareunitsandperformance(RSUs/PSUs), bundled arrangements,stand-alonesellingpricesare determined repayment period. at marketratesandinterestrevenueisaccretedoverthecontractual arrangements, includingdevicefinancingplans,customerspay monthly are included in contract costs in the statements of financial position, number of RSUs/PSUs expected to vest, recognized over the term of recognizedoverthetermof expectedtovest, number of RSUs/PSUs and servicestoresidentialbusinesscustomers. Incremental costsofobtainingacontractwithcustomer, principally in integrated digitalwirelessvoice anddatacommunicationsproducts the vesting period, with a corresponding credit to contributed surplus. to contributedsurplus. the vestingperiod.Whenstockoptionsareexercised,wecreditshare We recognize compensation expense in Operating costs to vest. factors, asappropriate. 130 Operating costs

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BCE In SHA s /PSU c . 2020Annu s intheincomestatements,equal tothemarket a l R device financingplanreceivables arediscounted e po r t in the in the TV, specialtyTV, digitalmedia,radiobroadcasting andOOHadvertising sale. Servicesarepaid foronamonthlybasisexceptwhere a billing schedule has been established with certain business customers under schedule has been established with certain business customers under surplus isreflectedinthedeficit. inBCEcommonshares,DSUs,oracombinationthereof.settled Operating costs WIRELINE SEGMENTREVENUES ESP DSU MEDIA SEGMENTREVENUES Upon settlement of the DSUs, any difference between the cost of shares of theUpon DSUs, any difference between the cost of shares settlement when a customer takes possession of the product. We recognize service Werecognizeservice when acustomertakespossession oftheproduct. Our Wirelinesegmentprincipally generatesrevenuefromproviding Compensation expenseisadjustedforsubsequentchangesin Our Mediasegmentprincipally generatesrevenuefromconventional purchased on the open market and the amount credited to contributed purchased ontheopenmarketandamountcreditedtocontributed products delivered, performance completed to date, time elapsed or products delivered,performancecompletedtodate,timeelapsedor payments areduemonthlyastheservicesprovided. panels andstreetfurniture.Revenuesrelatingtosubscriberfeesare We recognize product revenues from the sale of wireline equipment We recognizeproductrevenuesfromthe sale ofwirelineequipment We recognizeourESPcontributions ascompensationexpensein We recognizeadvertisingrevenuewhenadvertisementsareairedon For wirelinecustomers,productsareusuallypaid infullatthepoint of difference between the cost of shares purchased on the open market difference between thecostofsharespurchasedon theopenmarket distance, data and other services from or to resellers and other carriers. credit contributedsurplusforthefairvalue ofDSUs attheissuedate. cessation ofemploymentorwhenadirectorleavestheboard.We cost ofsharespurchasedontheopenmarketandamountcredited oftheRSUs/PSUs, anydifferencebetweenthe change. Upon settlement data, including Internet access and Internet protocol television (IPTV), data, includingInternetaccessandprotocoltelevision(IPTV), milestones met. For bundledarrangements,stand-alonesellingprices milestones met. revenues overtime,astheservicesareprovided.Revenuesoncertain are expected to vest. Upon settlement of sharesundertheESP, Upon settlement are expectedto vest. any based onmanagement’s estimate oftheaccruedcontributions that reflect dividendsdeclaredonthecommonshares.DSUsaresettled management’s estimate of the number of RSUs/PSUs that are expected approach forcustomizedbusinessarrangements. and otherfactors,asappropriate, ortheexpectedcostplusmargin are determinedusingobservable pricesadjustedformarketconditions and businesscustomers. Our Wireline segment also includes revenues as wellothercommunicationsservicesandproductstoresidential and theamount creditedto contributedsurplus isreflectedin thedeficit. and subscriber feesfromspecialty TV, pay TV andstreamingservices. recorded on a monthly basis as the services are provided. Customer recorded onamonthlybasisastheservicesareprovided.Customer If compensation is elected to be taken in DSUs, we issue DSUs equal If compensationiselectedtobetakeninDSUs,weissueDSUsequal long-term contractsthatcangenerallyextenduptosevenyears. long-term contractsarerecognizedusingoutputmethodsbasedon local telephone, long distance, satellite TV service and connectivity, in BCE common shares purchased on the open market following the in BCEcommonsharespurchasedontheopenmarketfollowing from our wholesale business, which buys and sells local telephone, long from ourwholesalebusiness,whichbuysandsellslocaltelephone,long for the ESPexpenserecognized over the two-year vesting period, to the fairvalue oftheservicesreceived.AdditionalDSUsareissued to VestedRSUs/PSUsare to contributedsurplusisreflectedinthedeficit. Theeffectofthesechangesisrecognizedintheperiod to vest. the radioorTV, posted onourwebsitesorappear onouradvertising s in the income statements. We credit contributed surplus in the income statements. We credit contributed surplus • • A current or non-current tax asset (liability) is the estimated tax NCOME OTHER AND TAXES E) ROPERTY, EQUIPMENT AND PLANT I) H) CURITIZATION RECEIVABLES TRADE OF G) EQUIVALENTSASH F) statements, except totheextent that the expense relates to items DSP weighted average interest rate on our outstanding long-term debt. Gains Gains weighted averageinterestrateonour outstandinglong-termdebt. Cash equivalents arecomprisedofhighlyliquidinvestmentswithoriginalmaturitiesthreemonthsorlessfromthedatepurchaseand Current anddeferredincometaxexpenseisrecognizedinthe periods. We record property, plant and equipment at historical cost. Historical Historical We recordproperty,plantandequipment athistoricalcost. We measureinventoryatthelowerofcostandnetrealizablevalue. We use the liability method to account for deferred tax assets and Deferred tax assets and liabilities are calculated at the tax rates that Deferred taxassetsandliabilitiesarecalculatedattheratesthat Borrowing costs are capitalized for qualifying assets, if the time to Borrowing costsarecapitalized for qualifyingassets,ifthetimeto Proceeds onthesecuritizationoftradereceivables arerecognizedasacollateralizedborrowing aswedonottransfercontrol and substantially Both ourcurrentanddeferredtaxassetsliabilitiesarecalculated For eachdeferredsharegrantedundertheDSP, werecognize on commonshares. or losses on the sale or retirement of property, plant and equipment or lossesonthe sale orretirementofproperty,plant andequipment andlabour. includingthepurchasecost, or constructionoftheasset, to the acquisition cost includes expenditures that are attributable directly inequity. or directly equal tothemarketvalue ofaBCEcommonshare.Deferredsharesare compensation expensein build ordevelopisinexcessofone year, ataratethatisbasedonour receivable (payable) ontaxableearnings(loss)forthecurrentorpast recognized inOthercomprehensiveincomefromcontinuingoperations no longer granted, all therisksandrewardsofownershiptoanotherentity. are expectedtoapply whentheassetorliabilityisrecoveredsettled. are recordedin measured atamortizedcost. Inventory includes all costs to purchase, convert and bring the inventories Inventory includesallcoststopurchase,convertandbringtheinventories liabilities, whicharisefrom: identification for major equipment held for resale and the weighted identification formajorequipmentheldresaleandtheweighted to their present location and condition. We determine cost using specific to theirpresentlocationandcondition.Wedeterminecostusingspecific

corresponding taxbases can beusedinthefuture liabilities recognizedinthestatementsoffinancial position andtheir the carryforward of unused tax losses and credits, to the extent they the carryforwardofunusedtaxlossesandcredits,toextentthey temporary differencesbetweenthecarryingamountofassetsand

P INVENTORY SE C I Other (expense)income except those issued to reflect dividends declared except those issued to reflect dividends declared in the income statements Operating costsintheincomestatements intheincomestatements. Tax liabilitiesare,wherepermitted,offsetagainsttaxassetswithinthe same taxableentityandtaxjurisdiction. value ofBCEcommonshares.Thecumulativeeffectanychange valuation reservesforinventorythatisslow-moving orpotentially INVESTMENT TAX CREDITS(ITC LEASES CREDITS ANDGOVERNMENTGRANTS where we control the timing ofthe reversal of the temporary difference Compensation expense is adjusted for subsequent changes in the market Compensation expenseisadjustedforsubsequentchangesinthemarket We adoptedIFRS 16 –Leases asofJanuary 1, 2019.Certainfinanceleases land We enterintoleasesfornetwork infrastructure andequipment, We recognizeITCs,othertaxcreditsandgovernmentgrantsgivenon Leases, aspermitted bythespecifictransitionprovisions ofIFRS 16. Deferred taxesareprovidedontemporary differencesarisingfrom contain awiderangeofdifferent terms andconditions. entered intoprior to January 1, 2019 wereinitiallymeasuredunder IAS 17 – obsolete, calculatedusinganinventoryaginganalysis. eligible expenditures when it is reasonably assured that they will be eligible expenditureswhenitisreasonablyassuredthattheywillbe using tax rates that have been enacted or substantively enacted at using taxratesthathavebeenenactedorsubstantivelyat and it is probable that the temporary difference will not reverse in the and governmentgrants,underwhichthecreditsareapplied against average cost formula for all other inventory. We maintain inventory average costformulaforallotherinventory.Wemaintaininventory and buildings in the normal course of business. Lease contracts are and buildingsinthenormalcourse ofbusiness.Leasecontractsare realized. Theyarepresentedaspart of investments in subsidiaries, joint arrangements and associates, except in thenextyear. WeusethecostreductionmethodtoaccountforITCs in value is recognizedin the periodof the change.Participants have foreseeable future. termination options. Leases are negotiated on an individual basis and termination options. Leases are negotiated on an individual basis and typically made for fixed periods but may include purchase, renewal or the statementsoffinancial position whentheyareexpectedtobeutilized the expenseorassettowhichITCgovernmentgrantrelates. terms ofthegrant. for each vested deferred share upon qualifying for payout under the the optiontoreceiveeitherBCEcommonsharesoracashequivalent the reporting date. Trade andotherreceivables in s BCE In ), OTHERTAX c . 2020Annu a l R e po r t

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Notes to consolidated fi nancial statements Notes to consolidated fi nancial statements • • • • • • • Software development costs are capitalized when all the following Software developmentcostsarecapitalizedwhenallthefollowing NTANGIBLE ASSETS J) IFRS 16 PROGRAM ANDFEATURE FILMRIGHTS CUSTOMER RELATIONSHIPS SOFTWARE FINITE-LIFE INTANGIBLE ASSETS when theseassets areacquiredforthepurpose of broadcasting. Customer relationshipassets are acquiredthroughbusiness payments thatarenotpaid atthecommencementdate,discounted purchase, renewalorterminationoptionswillbeexercised. We account for program and feature film rights as intangible assets We accountforprogramandfeature filmrightsasintangibleassets Cost includes We record internal-use software at historical cost. We assess whether a contract contains a lease at inception of the Lease liabilities are subsequently measured at amortized cost using measuredatamortizedcostusing Lease liabilitiesaresubsequently Right-of-use assets are measured at cost, and are comprised of the andarecomprisedofthe Right-of-use assetsaremeasuredatcost, Program andfeature filmrights,whichincludeproducer advances and Finite-life intangibleassetsarerecordedatcostlessaccumulated Lease liabilitiesareinitiallymeasuredatthepresentvalue ofthelease combinations andarerecordedat fairvalue atthedateofacquisition. conditions aremet: development ofthesoftware,includingpurchasecostandlabour. totheacquisitionor expenditures thatareattributabledirectly corresponding adjustmenttotherelatedright-of-useassets,when components onarelativestand-alonevalue basis.Wegenerallyaccount Aleasecontractconveystherighttocontroluseofan contract. using our incremental borrowing rate, unless the rate implicit in the using ourincrementalborrowingrate,unlesstherateimplicitin a singleleasecomponent. rate toaportfolio ofleaseswithsimilarcharacteristics.Leasepayments amortization andaccumulatedimpairment losses,ifany. assets, whichareexpensedonastraight-linebasisoverthelease agreements, exceptforshort-termleasesandoflowvalue lease isreadilydeterminable.Weapply asingleincrementalborrowing lease liabilitieswithcorresponding right-of-useassetsforalllease licence feespaid inadvance ofreceipttheprogram orfilm,arestated initial measurementofthecorresponding leaseliabilities,payments included inthemeasurementofleaseliabilitycomprise: identified asset for aperiod in exchange for consideration. We recognize in an index or rate, or when we change our assessment of whether in anindexorrate,whenwechangeourassessmentofwhether the effective interest method. Lease liabilities are remeasured, with a the effectiveinterestmethod.Leaseliabilitiesareremeasured,witha there is a change in variable lease payments arising from a change for lease components and any associated non-lease components as term. Considerationinacontractisallocatedtoleaseandnon-lease 132

variable leasepayments thatdependonanindexorrate fixed (and in-substance fixed) lease payments, less any lease incentives payments expectedunderresidualvalue guaranteesandpayments costs attributabletotheassetcanbemeasuredreliably options thatarenotreasonablycertaintobeexercised) use orsale management has the intent and the ability to complete the asset for management hastheintentandabilitytocompleteassetfor reasonably certaintobeexercised(orperiodssubjecttermination relating topurchaseoptionsandrenewaloptionperiodsthatare it isprobablethateconomicbenefitswillbegenerated technical feasibilitycanbedemonstrated

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BCE In I c . 2020Annu a l R e po r t • • The relatedpayments areexpensedin depreciated on a straight-line basis andreduced They are subsequently Variable leasepayments that donot dependonanindexorratearenot IAS 17 INDEFINITE-LIFE INTANGIBLE ASSETS ASSET RETIREMENTOBLIGATIONS (ARO Under IAS 17, leases of property, plant and equipment are recognized as we depreciate the right-of-use asset from the commencement date we depreciatetheright-of-useassetfromcommencementdate we depreciatetheright-of-useassetfromleasecommencement Currently, there are no legal, regulatory, competitive or other factors therearenolegal,regulatory, competitiveorotherfactors Currently, finance leases when we obtain substantially all the risks and rewards finance leaseswhen weobtainsubstantially all therisks andrewards program andfeaturefilmrightsisrecordedin We initiallymeasureandrecordAROsatmanagement’s bestestimate Borrowing costs are calculated at a rate that is based on our weighted Brand assets,mainlycomprisedoftheBell,BellMediaandMTS Related liabilitiesofprogramsandfeaturefilmsareclassified as date to the end of the useful life of the underlying asset. Otherwise, Otherwise, date totheendofusefullifeunderlyingasset. of theright-of-useassetreflectsexerciseapurchaseoption, ownership of theleased asset by the end of the lease term or the cost of ownership of the underlying assets. At the inception of the lease, we of ownershiptheunderlyingassets.Atinceptionlease,we end oftheleaseterm. combinations and are recorded at fair value at the date of acquisition, basedonthepayment terms.Amortizationof current ornon-current, changes inthetimingoramountofcashflowsanddiscount using a present value methodology, adjusted subsequently for any using apresentvalueforany methodology,adjustedsubsequently record anassettogetherwithacorresponding long-termleaseliability, by impairment losses, if any. Right-of-use assets may also be adjusted made at or before the commencement date and any initial direct costs. brands, and broadcast licences are acquired through business rates. Wecapitalizeassetretirementcostsaspart oftherelated at theloweroffairvalue oftheleasedassetorpresentvalue of average interest rate onouroutstandinglong-term debt. including borrowing costs when the are recorded at acquisition cost, agreements arerecordedasassetsforrightsacquiredandliabilities at acquisitioncostlessaccumulatedamortization,and reflect the passage oftime. assets andamortizethemintoearningsovertime.Wealsoincrease less accumulatedimpairment losses,ifany.Wireless spectrumlicences included in the measurement of lease liabilities and right-of-use assets. included inthemeasurementofleaseliabilitiesandright-of-useassets. impairment losses,ifany.Programsandfeaturefilmsunderlicence income statements. in whichtheeventorconditionthattriggersthosepayments occurs. to the earlier ofthe end of the useful life of the underlying asset or the to reflecttheremeasurementofrelatedleaseliabilities.Ifweobtain the minimumfutureleasepayments, excludingnon-leasecomponents. that limittheuseful livesofourbrandsorspectrum licences. time tobuildordeveloptherelated networkisinexcessofoneyear. for obligationsincurredwhen: recordacorresponding amountininterestexpenseto the ARO and

syndicated programs we receive a broadcast master and the cost is known or reasonably we receiveabroadcastmasterandthecostisknownorreasonably determinable fornewprogramandfeaturefilmlicences;or the licencetermcommencesforperiodextensionsor in the period Operating costsintheperiod in the Operating costsinthe s ) The consideration transferred in a business combination is measured The consideration transferred in a business combination is measured NVESTMENTS IN ASSOCIATES ARRANGEMENTS JOINT AND NVESTMENTS L) EPRECIATION AMORTIZATION AND K) MPAIRMENT NON-FINANCIAL OF ASSETS N) COMBINATIONSSINESS GOODWILL AND M) statements. GOODWILL IMPAIRMENT TESTING which goodwill is allocated, and whenever there is an indication that which goodwillis allocated,andwheneverthereis anindicationthat Goodwill and indefinite-life intangible assets are tested for impairment Our financialstatementsincorporate ourshareoftheresults We performanannualtestforgoodwill impairment inthefourthquarter When weacquirecontrolofabusiness,anypreviously-held We reviewourestimatesofusefullivesonanannualbasisandadjust We depreciateproperty,plantandequipmentamortizefinite-life Property, plant and equipment and finite-life intangible assets are tested Property, plantandequipmentfinite-lifeintangibleassetsaretested Business combinationsareaccountedforusingtheacquisitionmethod. goodwill mightbe impaired. carrying value of the assets over their recoverable amount. Anasset’scarrying value oftheassetsover their recoverableamount. goodwill are groupedat thelowestlevel for which there are separately each reporting period,indicatethattheircarryingamountmaynotbe costs areexpensedasincurredandrecordedin or lossandcomprehensiveincomeonanafter-taxbasis. cost andadjustedthereaftertoincludethecompany’s shareofincome except whentheinvestmentisclassifiedasheldforsale.Equityincome depreciation andamortizationonaprospectivebasis,asrequired.Land all oraportion oftheimpairment isreversed. reporting dateand,iftheasset’s recoverableamounthasincreased, recoverable amount is the higher of its fair value less costs of disposal recoverable. For the purpose ofimpairment testing, assetsotherthan businesses arerecordedattheirfairvalues atthedateofacquisition. and itsvalue inuse.Previouslyrecognizedimpairment losses,otherthan annually orwhenthereisanindicationthattheassetmaybeimpaired. and assetsunderconstructionordevelopmentarenotdepreciated. at fairvalue atthedateofacquisition.Acquisition-relatedtransaction associates andjointventuresusingtheequitymethodofaccounting, Identifiable assets and liabilities, including intangible assets, of acquired Investments inassociatesandjointventuresarerecognizedinitiallyat Impairment lossesarerecognizedandmeasuredastheexcessof and othercosts identifiable cashinflows. intangible assetsonastraight-linebasisovertheirestimatedusefullives. for each of our cash generating units (CGUs) or groups of CGUs to for eachofourcashgenerating units (CGUs)orgroupsofCGUsto those attributabletogoodwill,arereviewedforpossible reversalateach for impairment ifeventsorchangesincircumstances, assessedat from investmentsisrecordedin

I BU I D intheincomestatements. Other (expense)income Severance, acquisition Severance, acquisition in the income intheincome Segmented information . An impairment charge is recognized in the income statements for any A CGU is the smallest identifiable group of assets that generates cash A CGUisthesmallestidentifiablegroupofassetsthatgeneratescash statements immediatelyasabargainpurchasegain. value, therecoverable amountisdeterminedforitsidentifiableassets we compare theirrecoverableamounttocarryingwhen joint operationsinaccordancewiththerelatedcontractualagreements. flows orother on valuation methods.Cashflowsareprojected based past experience, actual operating results and business plans. When the position. Ifthefairvalue ofidentifiablenetassetsacquiredexceeds previously-held equityinterestoverthefairvalue ofidentifiablenet We recognize our share of the assets, liabilities, revenues and expenses of We recognizeourshareoftheassets,liabilities,revenuesandexpenses We identifyanypotential impairment bycomparing thecarryingvalue For purposes ofimpairment testingofgoodwill,ourCGUsor groups of CGUs correspond to our reporting segments as disclosed in Note 4, excess ofthecarryingvalue ofgoodwilloveritsrecoverableamount. group ofCGUsoverthetotal amountsassignedtoitsassetsand costs ofdisposal anditsvalue inuse.Both fairvalue lesscostsofdisposal Therecoverable of aCGUorgroupCGUstoitsrecoverableamount. on remeasurementisrecognizedin equity interestisremeasuredtofairvalue andanygainorloss groups ofassets. assets acquiredisrecordedas recoverable amount of a CGU or group of CGUs is less than its carrying recoverable amountofaCGUorgroupCGUsislessthanitscarrying and liabilities. The excess of the recoverable amount of the CGU or and liabilities.TheexcessoftherecoverableamountCGU or and value inusearebasedonestimatesofdiscounted futurecash amount of a CGUor group of CGUsis the higher of its fair value less Investments arereviewedforimpairment ateachreporting periodand liabilities istherecoverableamount ofgoodwill. income statements. The excess of the purchase consideration and any income statements.Theexcessofthepurchaseconsiderationandany inflows thator are independent of the cash inflows from other assets the differenceisrecognizedin the purchaseconsiderationandanypreviously-heldequityinterest, there isanindicationofimpairment. Finite-life intangibleassets Property, plantandequipment Software Customer relationships Program andfeaturefilmrights Buildings Network infrastructureandequipment Other (expense)income in the statements of financial Goodwill inthestatementsoffinancial Other (expense)income BCE In c . 2020Annu ESTIMATED USEFULLIFE Up to5 years 2 to 26 years 2 to 12 years 5 to 50 years 2 to 50 years in the income intheincome a l R e po in the inthe r t

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Notes to consolidated fi nancial statements Notes to consolidated fi nancial statements To qualify for hedge accounting, we document the relationship between These securitiesarerecordedatfairvalue onthedateofacquisition, INANCIAL INSTRUMENTS AND CONTRACT ASSETS INANCIAL CONTRACT AND INSTRUMENTS O) OST-EMPLOYMENT BENEFIT PLANS Q) ERIVATIVE FINANCIAL INSTRUMENTS P) value throughothercomprehensiveincomeandarepresentedin CASH FLOW HEDGES DEFINED BENEFIT(DB)AND OTHERPOST-EMPLOYMENT BENEFIT(OPEB) PLANS HEDGE ACCOUNTING Our portfolio investmentsinequitysecuritiesareclassifiedasfair five years of service. Most employees are not required to contribute five yearsofservice.Mostemployees arenotrequiredtocontribute financial position, whereas derivatives thathave a maturity ofmore financing position whenrealized. protect theincome ofretiredemployeesagainstinflation. We assesstheeffectivenessofaderivative inmanaging anidentified We maintain DB pension plans that provide pension benefits for certain We maintainDBpensionplansthat providepensionbenefitsforcertain We enter into cash flow hedges to mitigate foreign currency risk on We usederivative financialinstrumentstomanagerisksrelated We measuretradeandotherreceivables, includingwireless Derivatives thatmaturewithinoneyearareincludedin qualifying criteria,wediscontinuehedgeaccountingprospectively. ongoing basisthereafter. Ifahedgingrelationshipceasestomeetthe oranticipated derivative toaspecificassetorliability,commitment, of serviceandaverageratepay duringthehighestpaid consecutive employees andretirees.Benefits arebasedontheemployee’s length certain debt instruments and anticipated purchases and sales, as well or tradingpurposes. expenses. Wedonotusederivative financialinstrumentsforspeculative expenditures, long-term debt instruments and operating revenues and changes ininterestrates,foreigncurrencycommodityprices of comprehensiveincome)andarereclassifiedfrom each reporting date.Thecorresponding unrealizedgainsandlossesare our statementsoffinancial position as risk exposure whenhedgeaccountingisinitiallyapplied, andonan management objectiveandstrategy.Thisincludesassociatingeach recorded in method, netofanyallowancefordoubtfulaccounts. as interestrateriskrelatedtoanticipated debtissuances. and cashflowexposures related toshare-based payment plans,capital non-current liabilities. other comprehensiveincome assets in the consolidated statements of comprehensive income (statements in theconsolidatedstatementsofcomprehensiveincome(statements including related transaction costs, and are adjusted to fair value at to the plans. Certain plans provide cost of living adjustments to help the derivative andtherelatedidentifiedriskexposure, andourrisk than oneyearareincludedin transaction. 134

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BCE In P D F orTrade payables andotherliabilities plan receivables, atamortizedcostusingtheeffectiveinterest c . 2020Annu Other comprehensive income from continuing operations a l R e po r t to Other non-currentassets in the statements of financial Deficit inthestatementsoffinancial Other non-currentassets inthestatementsof Other current Other current Accumulated Accumulated orOther device device .

The cost of issuing equity is reflected in the consolidated statements The costofissuingequityisreflected intheconsolidatedstatements The costofissuingdebtisincludedaspart oflong-termdebtandis As these derivatives do not qualifyfor hedge accounting, the changes service andlifeexpectancy. share-basedpayment plansandanticipatedsettled purchasesinforeign sales denominated in foreign currencies. Changes in the fair value of DERIVATIVES USEDASECONOMICHEDGES written offandrecognizedin Other financialliabilities,whichincludetrade payables andaccruals, permitted by pension regulatory bodies. Contributions reflect actuarial permitted bypensionregulatory bodies. Contributions reflect actuarial payment plan,interestrateriskrelatedtopreferredsharedividend portion, whichisrecognized immediately in We areresponsible foradequatelyfundingourDBpension plans.We We measuretheallowancefordoubtfulaccountsandimpairment of We use foreign currency forward contracts and options to manage We useforeigncurrencyforwardcontractsandoptionstomanage We usederivatives tomanagecashflowexposures relatedtoequity We useforeigncurrencyforwardcontractsandcrossinterest compensation payable, obligationsimposed bytheCanadianRadio- contract assets based on an expected credit loss (ECL) model, which contract assetsbasedonanexpectedcreditloss(ECL)model,which currencies, equity price risk related to a cash-settled share-based share-based currencies, equitypriceriskrelatedtoacash-settled Changesinthefairvalue ofthesederivatives debt. andtherelateddebt corresponding hedgedtransactionsarerecognized. of changesinequityasachargetothedeficit. make contributionstothembased onvarious actuarialcostmethods receivables andcontractassets.Amountsconsidereduncollectibleare resets and commodity price risk related to the purchase cost of fuel. resets andcommoditypriceriskrelatedtothepurchasecostoffuel. rate swaps to manage our U.S. dollar debt under our committed credit and forward-looking information. We use the simplified approach arerecordedatamortizedcostusingtheeffective and long-termdebt, assumptions about future investment returns, salary projections, future assumptions aboutfutureinvestment returns,salaryprojections,future and inOther(expense)income unlessaportion ofthehedgingrelationshipisineffective. and offset, are recognizedin accounted for at amortized cost using the effective interest method. accounted for at amortized cost using the effective interest method. costs comprehensive incomearereclassifiedtothestatementsor interest method. in theirfairvalue arerecordedintheincomestatements in in our statements of comprehensive income, except for any ineffective for measuring losses based on the lifetime ECL for trade and other for measuringlossesbasedonthelifetimeECLtradeandother takes into account current economic conditions, historical information, television andTelecommunicationsCommission(CRTC),interestpayable facilities andcommercialpaper programandourU.S.dollarlong-term the income statements. Realized gains and losses in these foreigncurrencyforwardcontractsandoptionsarerecognized to the initial cost of the non-financial asset in the same periods as the to theinitialcostofnon-financialassetinsameperiodsas the foreigncurrencyexposure relatingtoanticipated purchasesand for derivatives share-based payments used to hedge cash-settled Other (expense)income Operating costsintheincomestatements. forotherderivatives. in the income statements intheincomestatements Other (expense)income Accumulated other Accumulated other Operating Operating in in

• • • • • • • • • • • STIMATES JUDGMENTS KEY AND S) R) Operating costs Our moresignificantestimatesandjudgmentsaredescribedbelow. pandemic, We base our estimates on a number of factors, including historical We baseourestimatesonanumberoffactors,includinghistorical When preparing thefinancialstatements,managementmakesestimates We value post-employment benefitplanassetsatfair value using We provideOPEBstosomeofouremployees,including: We accrueourobligationsandrelatedcostsunderpost-employment Provisions arerecognizedwhenallthefollowingconditionsmet: Post-employment benefitplanscurrentservicecostisincludedin experience, current events, employment benefitplanassetsandobligationsisrecognizedin current marketvalues. as well are subjecttomeasurementuncertaintyandactualresultscoulddiffer. and judgmentsrelatingto: and OPEBcostsaredeterminedusing: benefit plans,netofthefair value ofthebenefitplanassets.Pension the circumstances. By their nature, these estimates and judgments the circumstances.Bytheirnature,theseestimatesandjudgments

OPEB plansareunfundedandbenefits paid whenincurred. fixed income investments with maturities that match the timing of fixed incomeinvestmentswithmaturitiesthatmatchthetimingof phased outfornewretireessinceDecember 31, 2016.Mostofthese healthcare and life insurance benefits during retirement, which were whichwere healthcare andlifeinsurancebenefitsduringretirement, on past events disclosure ofcontingentassetsandliabilities of employees, expectedhealthcarecostsandlifeexpectancy other benefits,includingworkers’compensationandmedicalbenefits under certaincircumstances benefits expectedtobe paid undertheplans reported amountsofassetsandliabilities reported amountsofrevenuesandexpenses management’s best estimateofpay increases, retirement ages a discount rate based on market interest rates of high-quality corporate a discountratebasedonmarketinterestratesofhigh-qualitycorporate it is probable that an outflow of economic resources will be required it isprobablethatanoutflow ofeconomicresourceswillberequired the amountcanbereasonablyestimated theobligation to settle the company hasapresentlegal orconstructiveobligationbased takes intoaccountfuturepay levels the projectedunitcreditmethod,proratedonyearsofservice,which from thetimetheiremploymentendsuntilretirementstarts, to formerorinactiveemployees,theirbeneficiariesanddependants,

E PROVISIONS

and actionsthatthecompany mayundertakeinthefuture, other assumptions that we believe are reasonable under other assumptionsthatwebelievearereasonableunder in the income statements. Interest on our post-

including but not limited to the COVID-19 including but not limited to theCOVID-19 Finance Finance The actuarialvaluation usesmanagement’s assumptionsfor, among The amountsreported inthefinancialstatementsrelatingtoDBpension value ofmoneyismaterial. The presentvalue isdeterminedusing POST-EMPLOYMENT BENEFITPLANS FINITE-LIFE INTANGIBLE ASSETS USEFUL LIVESOFPROPERTY,PLANTANDEQUIPMENT DEFINED CONTRIBUTION(DC)PENSIONPLANS ESTIMATES Generally, newemployeescanonlyparticipate intheDCpensionplans. pension planswhentheemployeeprovidesservicetocompany, years ofserviceemployees. predetermined amounttoanemployee’s retirementsavings,based plans wasasatDecember 31, 2019. plans. The interest rate is based on market conditions that existed plans and OPEBs are determined using actuarial calculations that are plans andOPEBsaredeterminedusingactuarialcalculationsthat We recognizeapost-employment benefitplansservicecostforDC We maintain DC pension plans that provide certain employees with We maintainDCpensionplansthatprovidecertainemployeeswith December 31 is the measurement date for oursignificant measurement date the post- December 31 is Property, plantandequipmentrepresentasignificantproportion ofour Provisions aremeasuredatthepresentvalue oftheestimated essentially coincidingwithourcashcontributions. on apercentageoftheemployee’s salary. obligations. The most recent actuarial valuation of our significant pension on management’s assumptionsatleasteverythreeyearstodetermine employment benefitplans.Ouractuariesperforma valuation based employment benefitplansarerecordedin on theassetsandobligationsunderourpost-employment benefit other things, the discount rate, life expectancy, the rate of compensation other things,thediscountrate,lifeexpectancy, therateofcompensation current marketassessmentsofthediscountrateandrisksspecificto theobligation,ifeffectoftime expenditures expectedtosettle based onseveralassumptions. benefits. Under these plans, weare responsiblea for contributing at the beginning ofthe year. Actuarial gains andlosses for allpost- as well as changes in business prospects or economic and industry as wellchangesinbusinessprospectsoreconomicandindustry costs in the period in which they occur and are recognized immediately in in theperiodwhichtheyoccurandarerecognizedimmediately increase, trends in healthcare costs and expected average remaining increase, trendsinhealthcarecosts andexpectedaverageremaining in theincomestatements. the deficit. the actuarialpresentvalue oftheaccruedDBpensionplansandOPEB factors, maycausetheestimatedusefullivesoftheseassetstochange. total assets.Changesintechnologyorourintendeduseoftheseassets, time, resulting in interest expense which is recognized in Finance costs the obligation.Theobligationincreasesasaresultofpassage of from continuing operations in the income statements and represents the accretion of interest intheincomestatementsandrepresentsaccretionofinterest in the statements of comprehensive income BCE In Other comprehensive income Other comprehensiveincome c . 2020Annu a l R e po r t

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Notes to consolidated fi nancial statements Notes to consolidated fi nancial statements The application ofIFRS 16 requiresustomakeestimatesthataffectthe The amountsofdeferredtaxassetsandliabilitiesareestimatedwith The discount rate is based on the yield on long-term, high-quality The mostsignificantassumptionsusedtocalculatethenet post- A provision for onerous contracts is recognized when the unavoidable spreads andleaseterms.Weapply asingleincrementalborrowingrate selling pricesofproductsandservices. IMPAIRMENT OFNON-FINANCIALASSETS REVENUE FROMCONTRACTSWITHCUSTOMERS ONEROUS CONTRACTS CONTINGENCIES FAIR VALUE OFFINANCIALINSTRUMENTS LEASES DEFERRED TAXES Certain financial instruments, such as investments in equity securities, Certain financialinstruments,suchasinvestmentsinequitysecurities, published price quotations or by using other valuation techniques that publicly available risk-freeinterestrates,adjustedforapplicable credit We make a number of estimates when calculating recoverable amounts We make a number of estimates when calculating recoverable amounts We arerequiredtomakeestimatesthataffecttheamountofrevenue of comprehensiveincome.Fair values areestimatedbyreferenceto costs of meeting our obligations under a contract exceed the expected costs ofmeetingourobligationsunder acontractexceedtheexpected outcomes and assuming various strategies, litigation andsettlement claims and legal proceedings seeking monetary damages and other carried inthestatementsoffinancial position atfair value, withchanges derivative financialinstrumentsandcertainelementsofborrowings,are consideration giventothetiming,sourcesandamountsoffuture expectancy isbasedonpubliclyavailable Canadianmortalitytables estimated cashflowsofthe post-employment benefitplans.Life corporate fixedincomeinvestments,withmaturitiesmatchingthe employment benefitplanscostarethediscountrateandlifeexpectancy. using discountedfuturecashflowsorother valuation methodstotest and thediscountrate. at thepresentvalue ofthelowerexpectedcostterminating Theprovisionismeasured benefits tobereceivedunderthe contract. relief. Pending claims and legal proceedings represent a potential cost may includeinputsthatarenotbasedonobservable marketdata,such readily determinable.Ourincrementalborrowingrateisderivedfrom measurement ofright-of-useassetsandliabilities,includingdetermining as discountedcashflowsandearningsmultiples. based oninformationthatisavailable atthetime. and isadjustedforthecompany’s specificexperience. In the ordinary course of business, we become involved in various liabilities areinitiallymeasuredatthepresentvalue oftheleasepayments in fair value reflected in the income statements and the statements incremental borrowingrate, unless therateimplicitin the lease is to ourbusiness.Weestimatetheamountofalossbyanalyzingpotential to aportfolio ofleaseswithsimilarcharacteristics. that arenotpaid atthecommencementdate,discountedusingour the appropriate discountrateusedtomeasureleaseliabilities.Lease taxable income. future cashflows,thenumberofyearsusedinflowmodel Theseestimatesincludetheassumedgrowthratesfor for impairment. the contractandexpectednet costofcompletingthecontract. from contracts with customers, including estimating the stand-alone from contractswithcustomers,includingestimatingthestand-alone 136

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BCE In c . 2020Annu a l R e po r t The calculation of income taxes requires judgment in interpreting tax The calculationofincometaxesrequiresjudgmentininterpretingtax The determinationofthediscountrateusedtovalue ourpost- The determination of whether a loss is probable from claims and legal The determination of whether a loss is probable from claimsand legal The determination of CGUs or groups of CGUs for the purpose of The identificationofperformanceobligationswithinacontract and requires us to make judgments thataffect The application of IFRS 16 INCOME TAXES POST-EMPLOYMENT BENEFITPLANS CONTINGENCIES CGU REVENUE FROMCONTRACTSWITHCUSTOMERS LEASES JUDGMENTS which futureincometaxratesareapplied. when assessing the timing of the reversal of temporary differences to which theultimatetaxdeterminationisuncertain.Ourfilingsare we have the right to obtain substantially all of the economic benefits therighttoobtainsubstantiallyallofeconomicbenefits we have judgment. judgment is required when setting the criteria for fixed income proceedings and whether an outflow of resources is likely requires proceedings andwhetheranoutflow ofresourcesislikelyrequires Management judgment is used to determine the amounts of deferred tax of currentanddeferredtaxassetsliabilities. Therateissetby employment benefitobligationsrequiresjudgment. obtain a contract, including the identification of incremental costs, also includingtheidentificationofincrementalcosts,also obtain acontract, Additionally,thedeterminationofcosts tocontracts requiresjudgment. of thelease,significanceanyleaseholdimprovementsand options). Economic incentives include the costs related to the termination option, weconsiderallfactsandcircumstancesthatcreateaneconomic certain to exercise those options. Similarly, we include periods covered we of time in exchange for consideration. At inception of the contract, conveys therighttocontroluseofanidentifiedassetforaperiod rules andregulations.Therearetransactionscalculationsfor requires judgment. by terminationoptionswhenwearereasonablycertainnottoexercise assets andliabilitiestoberecognized.Inparticular, judgmentisrequired also subject to audits, the outcome ofwhich could change the amount assess whether the contract contains an identified asset, whether whether assess whetherthecontractcontainsanidentifiedasset, reference tomarketyieldsoflong-term,high-qualitycorporate fixed investments include the size of the issue and credit quality, along with investments includethesizeofissueandcreditquality,alongwith is derived.Themostsignificantcriteriaconsideredfortheselectionof investments tobeincludedinthepopulation fromwhichtheyieldcurve impairment testingrequiresjudgment. incentive toexerciserenewaloptions(ornottermination include periods covered by renewal options when we are reasonably include periodscoveredbyrenewaloptionswhenwearereasonably importance oftheunderlyingassetstoouroperations. income investmentsatthebeginningofeachfiscalyear. Significant the identification of outliers, whichareexcluded. the identificationofoutliers, the timing of satisfaction of performance obligations under long-term the timingofsatisfactionperformanceobligationsunderlong-term those options.To assessifwearereasonablycertaintoexercisean for whatpurpose theassetisused.Indeterminingleaseterm,we from use of the asset and whether we have the right to direct how and the measurement of right-of-use assets and liabilities. A lease contract s The followingtablesummarizesthecarryingvalue of theassetsandliabilitiessold: The following amended accounting standards issued by the IASB have an effective date after December 31, 2020 and have not yet been adopted Note 3 As required,effectiveJanuary 1, 2020,weadoptedthefollowingneworamendedaccountingstandards. UTURE CHANGES TO ACCOUNTING CHANGES UTURE STANDARDS U) AMENDED ACCOUNTING OR NEW OF DOPTION STANDARDS T) On June 1, 2020,BCEannouncedthatithadenteredintoanagreement We have reclassified amounts related to the sale for the previous year We havereclassifiedamountsrelatedtothesaleforpreviousyear consolidated statements of cash flows to make them consistent with consolidated statementsofcashflowstomakethemconsistentwith by BCE. to discontinued operations in our consolidated income statements and to discontinued operationsinour consolidated income statements and transaction valued at$1.04 billion. to sellsubstantiallyallof itsdatacentreoperations inanall-cash Total assetssold Total liabilitiessold Amendment to Amendment to Amendments to IFRS 3 – Amendments toIFRS 3– STANDARD STANDARD Contract, Amendments Amendments Contract, Cost of Fulfillinga COVID-19-Related COVID-19-Related contingent liabilities contingent liabilities Onerous Contracts – on IFRS 16 –Leases Rent Concessions, Rent Concessions, Business Combinations Definition ofaBusiness, IFRS 16 – Leases IFRIC Agenda Decision IFRIC AgendaDecision and contingent assets Net assetssold to IAS 37 –

Goodwill Contract costs Contract assets Other non-currentliabilities Deferred taxliability Property, plantandequipment Intangible assets Long-term debt

F A Provisions, Provisions,

| iscontinued operations D These amendments clarify which costs should be included in These amendmentsclarifywhichcostsshouldbeincludedin This amendment provides an optional relief to lessees from This amendmentprovidesanoptionalrelieftolesseesfrom These amendments to the implementation guidance of IFRS 3 These amendmentstotheimplementationguidanceofIFRS 3 DESCRIPTION DESCRIPTION COVID-19 pandemic. whether acontractisonerous. whether a transaction should be accounted for as a business whether atransactionshouldbeaccountedforasbusiness determining the cost of fulfilling a contract when assessing determining thecostoffulfillingacontractwhenassessing combination oranassetacquisition. clarify thedefinitionofabusinesstoassistentitiesdetermine (IFRIC) agenda decision clarifying the determination of the lease (IFRIC) agendadecisionclarifyingthedeterminationoflease International FinancialReporting InterpretationsCommittee applying IFRS 16’s guidanceon leasemodificationaccounting for rent concessions arising as a direct consequence of the for rent concessionsarisingasadirectconsequenceofthe term forcancellableorrenewableleasesunderIFRS 16. $211 million. The capital gain as a result of the sale is mainly offset by $211 million. Thecapitalgainasa resultofthesaleismainlyoffsetby of debt and other items) and recorded a gain on sale, net of taxes, of of debtandotheritems)recordedagainonsale,nettaxes, amortized effectiveJune 1, 2020. and intangibleassetsthatweresoldnolongerdepreciatedor In Q4 2020, we completed the sale for proceeds of $933 million (net (net wecompletedthesaleforproceedsof$933 million In Q4 2020, the recognitionofpreviouslyunrecognizedcapitallosscarryforwards. the presentationforcurrentyear. Property,plantandequipment These amendmentsdidnothaveanyimpact onourfinancial This agendadecisiondidnothaveasignificantimpact onour IMPACT IMPACT statements. They may affect whether future acquisitions statements. Theymayaffectwhetherfutureacquisitions financial of these amendments. optional relief. assessing the impact We arecurrently We did not adopt the We didnotadoptthe along with the resulting allocation of the purchase price between along withtheresultingallocationofpurchasepricebetween are accounted forasbusinesscombinationsorassetacquisitions, the netidentifiableassetsacquiredandgoodwill. statements. EFFECTIVE DATE Early application ispermitted. Effective forannualreporting periods Early application ispermitted. Effective forannualreporting periods beginning on or after January 1, 2022. beginning onorafterJanuary 1,2022. beginning on or after June 1, 2020. beginning onorafterJune 1,2020. BCE In c . 2020Annu a l R e po 113 829 115 227 484 670 159 2020 r 37 t

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Notes to consolidated fi nancial statements Notes to consolidated fi nancial statements To alignwithchangesinhowwemanageourbusinessandassess The accounting policies used in our segment reporting are the same as The followingtablessummarizetheincomestatementsandofcashflowsourdiscontinuedoperationsupto point ofsale. Note 4 As a result of the sale of substantially all of our data centre operations, As aresultofthesalesubstantiallyallourdatacentreoperations, Accordingly, weoperateandmanageoursegmentsasstrategicbusiness sector, isnowmanagedbyourBellBusinessMarketsteaminorderto Ourpublicsafetylandradionetworkbusiness,whichbuilds segment. with eachotherasiftheywereunrelatedparties. we classify our operations for planning and measuring performance. we classify our operations for planningand measuring performance. previously included in our Bell Wireline segment, are now presented arenowpresented previously includedinourBellWirelinesegment, purposes. Previously,theseresultswereincludedwithinourBellWireless performance, theoperatingresultsofourpublicsafetylandradio Media. Our segments reflect how we manage our business and how Media. Oursegmentsreflecthowwemanageourbusinessand effective January 1, 2020, with prior periodsrestatedforcomparative units organized by products and services. Segments negotiate sales units organizedbyproductsandservices.Segmentsnegotiatesales additional details. as adiscontinuedoperation.SeeNote 3, better serveourcustomerswithend-to-endcommunicationssolutions. network businessarenowincludedwithinourBellWirelinesegment and manages land mobile radio networks primarily for the government and manageslandmobileradionetworksprimarilyforthegovernment are reported in three segments: Bell Wireless, Bell Wireline and Bell the financial results of these data centre operations, which were those wedescribeinNote 2, 138 Amortization Gain onsale(netoftaxes$3million) FOR THEYEARENDEDDECEMBER31 FOR THEYEARENDEDDECEMBER31 Cash flowsusedinfinancingactivities Cash flowsfrom(usedin)investingactivities Cash flowsfromoperatingactivities Other expense Depreciation Operating costs Operating revenues Net earningsattributabletocommonshareholdersbeforegainonsale Income taxes Net earningsattributabletocommonshareholders Interest expense Net increaseincash

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BCE In c . 2020Annu

| egmented information egmented S a l R e po r Significant accounting policies t , for Discontinued operations,for . Our results . Our results Substantially allofouroperationsandassetsarelocatedinCanada. services fromortoresellersandothercarriers. streaming services, digital media services, radio broadcasting services streaming services,digitalmediaradiobroadcastingservices services andproductstoourresidential,smallmedium-sized which buys and sells local telephone, long distance, data and other which buysandsellslocaltelephone,longdistance,dataother Our Bell Media segment providesconventionalTV, specialtyTV, pay TV, Canada. In addition, this segment includes our wholesale business, Our Bell Wireline segment provides data, including Internet access and Our BellWirelesssegmentprovideswirelessvoice anddata profit, which is equal to operating revenues less operating costs for whichisequaltooperatingrevenueslesscostsfor profit, We measure the performance of each segment based on segment We measuretheperformanceofeachsegmentbasedon connectivity tobusinesscustomersareavailable nationallyacross consumer electronicproducts communication products and services to our residential, small and costs, depreciationandamortization,financecostsotherexpense business and large enterprise customers primarily in Ontario, Québec, medium-sized businessandlargeenterprisecustomers and OOH advertising services to customers nationally across Canada. are managedon a corporate basisand, accordingly, arenot reflected IPTV, local telephone, long distance, as well as other communication in segmentresults. the segment. Substantially all of our severance, acquisition and other Substantially all of our severance, acquisition and other the segment. the Atlantic provinces and Manitoba, whilethe Atlantic satellite TV service and across Canada. 226 211 939 892 118 2020 2020 (18) (57) 15 54 (7) (8) (6) (7) (7) as well as as well 171 2019 2019 (16) (38) (71) (18) 29 29 70 94 (4) (6) (7) (6) – SEGMENTED INFORMATION (1) (1) Total operating revenues Total operatingrevenues Severance, acquisitionandothercosts Segment profit Severance, acquisitionandothercosts Segment profit FOR THEYEARENDEDDECEMBER31,2019 FOR THEYEARENDEDDECEMBER31,2020 Capital expenditures Capital expenditures Goodwill Goodwill Other income Depreciation andamortization Operating revenues Other expense Depreciation andamortization Operating revenues Finance costs Finance costs Operating costs Operating costs Indefinite-life intangibleassets Indefinite-life intangibleassets Income taxes Income taxes Impairment ofassets Impairment ofassets Net earnings Net earningsfromdiscontinuedoperations Net earningsfromcontinuingoperations Net earnings Net earningsfromdiscontinuedoperations Net earningsfromcontinuingoperations

The chiefoperatingdecisionmakerusesprimarily onemeasureofprofittomakedecisionsandassessperformance,beingoperatin The chiefoperatingdecisionmakerusesprimarilyonemeasureofprofittomakedecisionsandassessperformance,beingoperatin External customers External customers Interest expense Interest expense Inter-segment Inter-segment Interest onpost-employment benefitobligations Interest onpost-employment benefitobligations (1) (1) NOTE NOTE 16, 18 16, 18 26 26 10 10 18 18 21 21 6 6 9 9 8 8 5 5 3 3 7 7 WIRELESS WIRELESS (5,210) (5,017) 3,791 3,666 8,946 8,630 3,948 3,046 4,063 3,046 9,001 8,683 671 916 BELL BELL 55 53 WIRELINE WIRELINE 12,036 11,884 12,317 12,206 (6,952) (6,960) 5,365 5,246 1,692 3,195 4,675 3,161 1,692 4,612 281 322 BELL BELL (2,367) (2,055) 2,381 2,946 2,085 2,946 2,811 2,369 3,217 2,750 MEDIA MEDIA 850 695 108 125 406 381 BELL BELL g revenueslessoperatingcosts. g revenueslessoperatingcosts. INTER-SEGMENT INTER-SEGMENT ELIMINATIONS ELIMINATIONS BCE In (742) (756) (742) (756) 742 756 c . 2020Annu – – – – – – – – – – a l R (13,787) (13,276) e 10,006 10,667 10,604 23,793 22,883 23,793 22,883 po (1,129) (1,125) (4,344) (1,110) (4,404) 9,607 3,974 8,021 4,202 7,840 2,699 2,473 3,253 3,224 (102) (114) (792) (194) (472) (116) 226 r (63) (46) BCE BCE t 29 95

– – |

139

Notes to consolidated fi nancial statements Notes to consolidated fi nancial statements The followingtablepresentsourrevenuesdisaggregatedbytypeofservicesandproducts. Note 6 Note 5 REVENUES BYREVENUES SERVICES PRODUCTS AND (4) (3) (1) (2) (1) (2) Research anddevelopmentexpensesof$47 million and$109 million areincludedinoperatingcostsfor 2020 and2019,respectively. 140 Total operating revenues Total products Total services Total severance,acquisitionandothercosts Total operating costs Total labour costs Acquisition andother Severance Services FOR THEYEARENDEDDECEMBER31 FOR THEYEARENDEDDECEMBER31 FOR THEYEARENDEDDECEMBER31 Cost ofrevenues Products Other operatingcosts Labour costs Less: arenetofamountsfromtheCanadaEmergencyWageorted in 2020 Subsidy,awagesubsidyprogramofferedbythefederalgovernmenttoeligibleemployersasresultof

Other operatingcosts Cost ofrevenuesincludescostswirelessdevicesandotherequipmentsold,network contentcosts,andp Other labourcostsincludecontractorandoutsourcingcosts. Costs rep Our productrevenuesaregenerallyrecognizedatap Our servicerevenuesaregenerallyrecognizedovertime. fees andrent. the COVID-19 pandemic. Capitalized labour Other wirelineservices Other labourcosts Post-employment benefitplansservicecost(netofcapitalizedamounts) Wireline equipmentandother Media Wireline data Wireless Wireline voice Wireline data Wages, salariesandrelatedtaxesbenefits Wireless |

BCE In (1) (2) c . 2020Annu

| | perating costs perating (3) everance, costs acquisition other and O S (4) (2) include marketing, advertising and sales commission costs, bad debt expense, taxes other than income taxes, information technology costs, professional service include marketing,advertisingand sales commission costs, bad debtexpense,taxesother than income taxes, information technology costs, professional service a l R e po r t oint intime. (1) ayments toothercarriers. NOTE 26 (13,276) 22,883 19,832 (4,108) (1,964) (6,967) (4,345) 3,051 2,508 2,369 3,402 7,691 6,122 1,007 (116) (975) (269) 494 248 2020 2020 2020 (81) (35) 49 (13,787) 23,793 20,566 (4,281) (1,928) (7,356) (4,503) (1,004) 3,227 2,623 2,811 3,564 7,617 6,323 1,028 (114) (246) 556 251 2019 2019 2019 (51) (63) 48 There wasnoimpairment ofBellMediagoodwill.SeeNote 21, Note 8 Note 7 Acquisition andothercostsconsistoftransactioncosts,suchaslegalfinancialadvisoryfees,relatedtocompletedor potential acquisitions, Severance costsconsistofchargesrelatedtoinvoluntary andvoluntary employeeterminations. ACQUISITION OTHER AND COSTS COSTS SEVERANCE $146 million allocatedtofinite-lifeintangibleassets,mainlyforprogram value oftheseCGUswas$942 million. 2020 within our Bell Media segment. These charges included $291 million Thesechargesincluded$291 million within ourBellMediasegment. COVID-19 pandemic. Accordingly, impairment testingwasrequired for December 31, 2025,usingdiscountratesof8.0%to9.5%andaperpetuity During Q2 2020, werecognized$452 million ofimpairment chargesfor During thesecondquarterof2020,weidentifiedindicatorsimpairment cost of disposal. We estimated the fair value of the CGUs using both companies andmarkettransactions.Afterimpairments, thecarrying growth rateof discounted cashflowsandmarket-based valuation models,which our EnglishandFrench TVservicesaswellvarious radiomarkets certain groupsofCGUsaswellforgoodwill. declines inadvertisingrevenues,lower subscriberrevenues andoverall employee severancecostsrelatedtothepurchaseofabusiness,integrateacquiredcompanies intoouroperations,costsrelating reviewed by senior management for the period of July 1, 2020 to reviewed byseniormanagementfortheperiodofJuly 1, 2020 by comparing thecarryingvalue oftheCGUstotheirfairvalue less allocated toindefinite-lifeintangibleassetsforbroadcastlicen and featurefilmrights,$15 million toproperty,plantandequipment Included in interest expense on long-term debt is interest on lease Included ininterestexpenseonlong-termdebtislease liabilities of$199 million and$213 million for 2020 and2019,respectively. include five-year cash flow projections derived from business plans include five-yearcashflowprojectionsderivedfrombusinessplans increases indiscountratesresultingfromtheeconomicimpact ofthe for furtherdetails. They were determined for network and infrastructure and equipment. for certainofourBellMediaTVservicesandradiomarkets,notably to litigation and regulatory decisions, when they are significant, andothercosts. to litigationandregulatorydecisions,whentheyaresignificant, Total interest expense FOR THEYEARENDEDDECEMBER31 Capitalized interest Interest expenseonotherdebt Interest expenseonlong-termdebt

| | nterest expense to nil as well as market multiple data from public (1.0%) tonilaswellmarketmultipledatafrompublic mpairment of assets of mpairment I I Goodwill c es, es, , The carryingvalue of these CGUs was $464 million at December 31, 2019. 3.96% for 2020 and2019, respectively, whichrepresentsthe weighted streaming services.Thechargesweredeterminedbycomparing the 2019 Capitalized interest was calculated using an average rate of 3.95% and Capitalized interestwascalculatedusinganaveragerateof3.95%and flows and market-based valuation models, which include five-year We estimatedthefairvalue oftheCGUsusingbothdiscountedcash cash flow projections derived from business plans reviewed by senior cash flowprojectionsderivedfrombusinessplansreviewedbysenior carrying value oftheCGUstotheirfairvalue lesscostofdisposal. continued advertisingdemandandratingspressuresintheindustry Theimpairment chargeswerearesultof our BellMediasegment. using a discount rate of 7.5% and a perpetuity growth rate of nil as well using adiscount rate of7.5% andaperpetuity growth rate ofnil aswell management fortheperiodofJanuary 1, 2020 toDecember 31, 2024, resulting from audience declines, as well ascompetitive pressure from broadcast licencesandcertainassetsforvarious radiomarketswithin as marketmultipledatafrompubliccompanies andmarkettransactions. average interestrateonouroutstandinglong-termdebt. maretcagsi 21 nldd$5 millionallocatedto 2019included$85 Impairment chargesin indefinite-life intangible assets, and $8 million allocatedprimarily indefinite-life intangibleassets,and$8 million to property, These impairment charges related to plant and equipment. BCE In (1,110) (1,072) 2020 c (87) 49 . 2020Annu a l R e (1,125) (1,017) po (153) 2019 r 45 t

|

141

Notes to consolidated fi nancial statements Notes to consolidated fi nancial statements The followingtableshowsthesignificantcomponents ofincometaxesdeductedfromnetearningscontinuingoperations Note 10 Note 9 GAINS INVESTMENTS ON GAINS (LOSSES)EQUITY IN ASSOCIATES FROM VENTURES JOINT AND INVESTMENTS INTANGIBLE ASSETS PROPERTY, OF EQUIPMENT AND DISPOSALS AND RETIREMENTS ON PLANT LOSSES AND share ofanobligationtorepurchase at fair value the minorityinterest subsidiaries. We recordedagain(loss)oninvestmentof$43 million and($53)million assets underconstruction. In 2019,werecordedgainsof$18 million, which includedagainonanobligationtorepurchaseatfairvalue theminorityinterestinoneofour In 2020,werecordedalossof$45 million duetoachangeinstrategicdirectionrelatedtheongoingdevelopmentofsome ofourTVplatform in 2020 and2019, respectively,relatedtoequitygains(losses)onour 142 Total other(expense)income Total incometaxes FOR THEYEARENDEDDECEMBER31 FOR THEYEARENDEDDECEMBER31 Gains oninvestments Current taxes Equity gains(losses)frominvestmentsinassociatesandjointventures Other Early debtredemptioncosts Deferred taxes Net mark-to-market (losses) gains on derivatives used to economically hedge equity settled Net mark-to-market(losses)gainsonderivatives usedtoeconomicallyhedgeequitysettled Losses onretirementsanddisposals ofproperty,plantandequipmentintangibleassets

Gain (loss)oninvestment Current taxes Change inestimaterelatingtopriorperiods Change inestimaterelatingtopriorperiods share Operations Uncertain taxpositions Previously unrecognizedtaxbenefits Uncertain taxpositions Effect ofchangeinprovincialcorporate taxrate Recognition andutilizationoflosscarryforwards Deferred taxesrelatingtotheoriginationandreversaloftemporary differences |

BCE In ‑ based compensationplans c . 2020Annu

| ther (expense) income | come taxescome O In a l R e po r t equity gainsorlossesfrominvestmentsinassociatesandjointventures. reporting periodandthegainorlossoninvestmentisrecordedas in oneofBCE’s jointventures.Theobligationismarkedtomarketeach NOTE 24 19 (194) (776) (792) (107) 2020 2020 (50) (51) (38) (18) (83) (26) 43 26 40 32 15 (5) 3 9 . (1,129) (761) (316) (106) 138 2019 2019 (18) (19) (53) 18 95 38 22 25 (9) (8) 6 9 –

The followingtable shows deferredtaxes resultingfromtemporary differences between thecarryingamountsofassets and liabilities recognized The followingtableshowsaggregatecurrentanddeferredtaxesrelatingtoitemsrecognizedoutsidetheincomestatements. The followingtablereconcilestheamountofreported incometaxesinthestatementswithcalculatedatastatutory in thestatementsoffinancial position andtheircorresponding taxbasis,aswelllosscarryforwards. tax rateof26.9%for 2020 and January 1, 2019 Total income taxes(expense)recovery Total incometaxesfromcontinuingoperations Applicable statutorytaxrate Add backincometaxes Average effectivetaxrate Other Discontinued operations FOR THEYEARENDEDDECEMBER31 NET DEFERREDTAX LIABILITY FOR THEYEARENDEDDECEMBER31 Deficit Other comprehensiveincome Change inestimaterelatingtopriorperiods Current taxes Business acquisitions Other December 31, 2019 Discontinued operations Deficit Other comprehensiveincome Business acquisitions Effect ofchangeinprovincialcorporate taxrate Other Previously unrecognizedtaxbenefits Deferred taxes Income statement December 31, 2020 Earnings fromcontinuingoperationsbeforeincometaxes Uncertain taxpositions Income statement Income taxescomputedatapplicable statutoryrates Net earningsfromcontinuingoperations Non-taxable portion ofequitygains(losses) Non-taxable portion ofgainsoninvestments 27.0% for2019. FORWARDS CAPITAL CARRY- (105) LOSS 129 NON- 25 13 31 69 2 5 – – – – – – – EMPLOYMENT BENEFIT PLANS (184) POST- 364 185 415 COMPREHENSIVE (54) 5 3 – – – – – – – – INCOME OTHER INTANGIBLE INDEFINITE- (172) (172) (1,763) (1,717) (1,763) ASSETS – LIFE 46 2020 – – – – – – – – – – – INTANGIBLE EQUIPMENT PLANT AND FINITE-LIFE PROPERTY, (1,779) (2,175) (1,642) ASSETS (426) (173) DEFICIT AND 30 46 (4) (6) (20) – – – – – – 14 (6) TANGIBLE BENEFITS COMPREHENSIVE CRTC 16 (7) (9) BCE In 7 – – – – – – – – – – – INCOME 3,265 2,473 OTHER (878) (792) 26.9% 24.3% 792 2020 c (90) (87) 47 21 . 2020Annu 9 2 6 3 1 – OTHER (323) (112) (199) 2019 255 (20) (36) (66) 12 12 13 (1) 1 9 – – a l R e (3,463) (3,704) (3,044) (1,175) (1,129) po DEFICIT 4,353 3,224 1,129 TOTAL (172) (114) (396) 27.0% 25.9% r 2019 (20) (90) (20) t 30 26 60 13 13 17 15 25 14 (4) (2)

9 2 5 4 5 |

143

Notes to consolidated fi nancial statements Notes to consolidated fi nancial statements • • The followingtablesummarizesourwireless The followingtableshowsthecomponents usedinthecalculationofbasicanddilutednetearningspercommonshareforattributable Note 12 Note 11 At December 31, 2020,BCEhad$64 million ofunrecognizedcapitalloss of non-capital loss 2020,BCE had $357 million At December 31, WIRELESS WIRELESS (1) (1) (1) portion ofthesebalancesisincludedin Wireless carryforwards whichcanbecarriedforwardindefinitely. carryforwards. We: and thelong-termportion isincludedwithinthe to commonshareholders. 144 Total tradeandotherreceivables Total wireless Trade receivables Allowance fordoubtfulaccounts Allowance forrevenueadjustments FOR THEYEARENDEDDECEMBER31 FOR THEYEARENDEDDECEMBER31 FOR THEYEARENDEDDECEMBER31 Current Commodity taxesreceivable Current taxreceivable Other accountsreceivable Dividends declaredpercommonshare(indollars) Weighted averagenumberofcommonsharesoutstanding(inmillions) Weighted averagenumberofcommonsharesoutstanding–diluted(inmillions) Net earningsfromdiscontinuedoperationsattributabletocommonshareholders–basic Net earningsfromcontinuingoperationsattributabletocommonshareholders–basic Non-current Net earningsattributabletocommonshareholders–basic

did notrecognizeadeferredtaxassetfor$94 million ofnon-capital expire invarying annualamountsfrom 2025 to2040. non-capital loss carryforwards. These non-capital loss carryforwards non-capital losscarryforwards.Thesecarryforwards recognized adeferredtaxassetof$69 million for$263 million ofthe loss carryforwards.Thisbalanceexpiresinvarying annualamounts from 2024 to2038. allowance for doubtful accounts

Excludes The detailsofsecuritizedtradereceiv The calculationoftheassumedexercisestockoptionsincludeseffectaverageunrecognizedfuturecompensationco exercise priceishigherthantheaveragemarketvalue ofaBCE commonshare.Thenumberofexcludedoptionswas10,783,936 in 2020and61,170 in2019. respectively, andallowance fordoubtfulaccounts 2019, respectively. Assumed exerciseofstockoptions Weighted averagenumberofcommonsharesoutstanding–basic |

BCE In device financing plan receivables represent amounts owed to us under financing agreements that have not yet been billed. The current c . 2020Annu

device financing

| | arnings per share per arnings (1) rade and other receivables DEVICE FINANCINGDEVICE E T a l R e po r t plan receivables ables aresetoutinNote 23, (1) and allowance for revenue adjustments Trade receivables and allowanceforrevenue adjustments (1) device financingplan Other non-currentassets PLAN RECEIVABLES PLAN Debt duewithinoneyear withintheTrade andotherreceivables on the current portion of receivables atDecember 31, 2020. on thenon-currentportion of . • • At December 31, 2019,BCEhad$734 million ofunrecognizedcapitalloss ofnon-capitalloss 2019,BCEhad$215 million At December 31, carryforwards whichcanbecarriedforwardindefinitely. carryforwards. We:

did notrecognizeadeferredtaxassetfor$93 million ofnon-capital expire invarying annualamountsfrom 2024 to2039. non-capital loss carryforwards. These non-capital loss carryforwards non-capital losscarryforwards.Thesecarryforwards recognized adeferredtaxassetof$31 million for$122 million ofthe loss carryforwards.Thisbalanceexpiresinvarying annualamounts from 2023 to2037. lineitemonourstatementsoffinancial position. $28 million $17 million lineitemonourstatementsoffinancial position and $9 million NOTE NOTE st of dilutive options. It excludes options for which the st ofdilutiveoptions.Itexcludesoptionsforwhichthe and 20 28 $5 million at December 31, 2020 and December 31, 2019, at December31, 2020 and December 31, 2019, at December31,2020and Decembe 3,528 3,414 904.4 2,272 2,498 904.3 1,048 (185) (149) 3.33 234 226 399 649 122 2020 2020 2020 0.1 92 3,038 2,981 901.4 3,011 3,040 900.8 (104) 3.17 188 150 2019 2019 2019 (62) 0.6 23 29 65 85 12 r 3 1, 1, The tablebelowprovidesareconciliationofthecontractcostsbalance. The tablebelowprovidesareconciliationofthesignificantchangesincontractassetsandliabilitiesbalances. recognizedasanexpenseincostofrevenueswas$2,927 million The totalamountofinventorysubsequently Note 15 Note 14 Note 13 2019, respectively. (1) Contract costsareamortizedoveraperiodrangingfrom12 to 84 months. Total inventory Amortization includedinoperatingcosts Acquisitions FOR THEYEARENDEDDECEMBER31 FOR THEYEARENDEDDECEMBER31 FOR THEYEARENDEDDECEMBER31 Contract assetstransferredtotradereceivables Contract terminationstransferredtotradereceivables Discontinued operations Revenue recognized from contract liabilities included Revenue recognizedfromcontractliabilitiesincluded Discontinued operations Opening balance,January1 Opening balance,January1 Revenue recognized included in contract liabilities Revenue recognizedincludedincontractliabilities Other Ending balance,December31 Ending balance,December31 Impairment chargesincludedinoperatingcosts Increase in contract assets from revenue recognized Increase incontractassetsfromrevenuerecognized Increase incontractliabilitiesincludedassets Incremental costsofobtainingacontractandfulfillment Increase incontractliabilitiesduringtheyear Merchandise andother Wireless devicesandaccessories

Net ofallowancefordoubtfulaccounts$59 additional details. during the year during theyear in contract assetsatthebeginningofyear at the beginning oftheyear

| | | ontract assets and liabilities and assets ontract ontract costs ontract

C C Inventory million and $68 million at December 31, 2020 and December 31, 2019, respectively. See Note 28, 2019,respectively.SeeNote 28, andDecember 31, atDecember 31, 2020 million and$68 million NOTE 3 (1,376) 1,644 CONTRACT ASSETS (186) (145) 834 188 943 2020 (15) (1) – – – (1) (1,461) 1,915 1,493 1,644 (175) (205) NOTE 131 2019 (54) – – – – 3 and $3,141 million for 2020 and and for 2020 and $3,141 million Financial andcapitalmanagement BCE In CONTRACT LIABILITIES (552) (643) 439 535 250 783 764 189 688 890 959 2020 2020 2020 c (46) 51 19 . 2020Annu (2) – – – – – – a l R e po (523) (666) 427 602 644 228 707 899 783 199 890 r 2019 2019 2019 (54) t 47 24 (3) (4)

– – – – – |

, for , for 145

Notes to consolidated fi nancial statements Notes to consolidated fi nancial statements Note 16 (1) (1) January 1,2020 January 1,2019 January 1,2020 January 1,2019 January 1,2020 January 1,2019 146 Transfers Transfers Acquired throughbusinesscombinations Additions Acquired throughbusinesscombinations Additions ACCUMULATED DEPRECIATION ACCUMULATED DEPRECIATION FOR THEYEARENDEDDECEMBER31,2019 FOR THEYEARENDEDDECEMBER31,2020 COST COST Discontinued operations Discontinued operations December 31,2020 Other Retirements anddisposals Retirements anddisposals Retirements anddisposals Other Discontinued operations December 31,2020 Discontinued operations Depreciation Retirements anddisposals Depreciation December 31,2019 December 31,2019 December 31,2020 December 31,2019 NET CARRYING AMOUNT Impairment lossesrecognizedinearnings Impairment lossesrecognizedinearnings NET CARRYING AMOUNT

Includes right-of-useassets.SeeNote 17, Includes right-of-useassets.SeeNote 17, |

BCE In c . 2020Annu

| roperty, plant and equipment and plant roperty, P a l R e po r t Leases Leases , foradditionaldetails , foradditionaldetails. . NOTE NOTE 8 8 3 3 3 3 INFRASTRUCTURE INFRASTRUCTURE AND EQUIPMENT AND EQUIPMENT NETWORK NETWORK 47,563 21,914 21,683 67,597 43,834 69,477 45,914 45,914 65,048 67,597 21,683 21,214 (1,003) (1,348) (1,268) (1,085) 3,015 2,508 2,414 3,035 1,130 (135) 964 (48) (70) (17) (11) 14 54 4 3 2 (1) (1) BUILDINGS BUILDINGS LAND AND LAND AND 4,122 3,710 4,266 8,079 3,405 7,832 3,813 3,813 7,528 8,079 4,266 4,123 (485) 443 567 247 440 (27) (54) (54) (77) (42) (31) (14) 23 38 49 (9) (4) 6 5 – (1) (1) CONSTRUCTION CONSTRUCTION ASSETS UNDER ASSETS UNDER (1,825) (1,772) 1,889 1,687 1,687 1,889 1,694 1,764 2,071 1,687 1,687 1,764 (32) (11) (1) 1 – – – – – – – – – – – – – – – – 27,513 27,636 51,685 77,363 79,198 47,239 74,340 77,363 49,727 27,636 27,101 49,727 (1,030) (1,434) (1,322) (1,127) 3,458 4,769 4,732 3,475 TOTAL TOTAL (147) (812) (631) (656) (48) (27) (15) 11 37 23 41 7 Note 17 RIGHT-OF-USE ASSETS spaces. Right-of-useassetsarepresentedin January 1,2019 January 1,2020 January 1,2020 January 1,2020 January 1,2019 January 1,2019 BCE’s andOOHadvertising significantright-of-useassetsunderleasesaresatellites,officepremises,land,cellulartowersites,retailoutlets Transfers Transfers Transfers Transfers Acquired throughbusinesscombinations Additions Acquired throughbusinesscombinations Additions ACCUMULATED DEPRECIATION ACCUMULATED DEPRECIATION FOR THEYEARENDEDDECEMBER31,2020 FOR THEYEARENDEDDECEMBER31,2019 COST COST Discontinued operations Discontinued operations December 31,2020 December 31,2019 Depreciation Discontinued operations Depreciation Discontinued operations December 31,2019 December 31,2019 December 31,2020 December 31,2020 Impairment lossesrecognizedinearnings NET CARRYING AMOUNT Lease terminations Impairment lossesrecognizedinearnings NET CARRYING AMOUNT Lease terminations Lease terminations Lease terminations

|

Leases Property, plantandequipment inthestatementsoffinancial position. NOTE NOTE 8 8 3 3 3 3 INFRASTRUCTURE INFRASTRUCTURE AND EQUIPMENT AND EQUIPMENT NETWORK NETWORK 2,217 2,308 1,301 3,609 1,042 3,690 1,301 2,308 1,473 3,609 3,329 2,287 (360) (111) (199) (233) 470 526 372 377 (20) (12) (3) (2) (8) (1) (2) (4) 1 1 – – BCE In BUILDINGS BUILDINGS LAND AND LAND AND 1,909 2,116 2,933 2,995 2,116 1,086 2,933 2,453 1,917 (121) 200 512 817 536 298 817 294 c (10) (22) (38) (19) . 2020Annu (2) (6) (9) (3) 4 8 5 1 – – – a l R e po 4,126 4,424 6,542 6,685 4,424 2,559 6,542 1,038 5,782 4,204 2,118 1,578 2,118 TOTAL TOTAL (362) (111) (199) (233) (129) 670 670 671 r (30) (25) (50) (10) (23) t (8) (5)

4 8 6 2 |

147

Notes to consolidated fi nancial statements Notes to consolidated fi nancial statements Total cashoutflowrelatedtoleaseswas$1,219 million and$1,214 million fortheperiodendedDecember 31, 2020 andDecember 31, 2019,respectively. The followingtableprovidestheexpensesrelatedtoleasesrecognizedinnetearningsfromcontinuingoperations. Note 18 See Note 28, See Note 23, ADDITIONAL DISCLOSURES STATEMENTS IN THE LEASES FLOWS CASH OF FROM EARNINGS CONTINUING IN OPERATIONS NET LEASES January 1,2020 January 1,2020 January 1,2020 of leaseliabilities. lease liabilitiesbalancesincludedinthestatementsoffinancial position. 148 Transfers Additions Acquired through business Acquired throughbusiness Amortization Amortization included in Amortization includedin ACCUMULATED AMORTIZATION Variable leasepayment expensesnotincludedinthemeasurementofleaseliabilities FOR THEYEARENDEDDECEMBER31 DECEMBER 31,2020 FOR THEYEARENDED COST Expenses forshort-termleases Expenses forleasesoflowvalue assets Discontinued operations Retirements anddisposals Retirements anddisposals December 31,2020 December 31,2020 Discontinued operations December 31,2020 Interest expenseonleaseliabilities NET CARRYING AMOUNT Impairment losses

combinations operating costs recognized inearnings |

BCE In c . 2020Annu Debt due within one year Financial andcapitalmanagement

| ntangible assets ntangible I a l R e po r NOTE t 8 3 3 SOFTWARE 10,522 (2,479) (2,480) , and Note 24, 5,644 7,345 9,169 3,177 3,525 810 344 787 (16) (13) (8) 1 – CUSTOMER RELATION- , for a maturity analysis , foramaturityanalysis 2,017 1,736 1,178 SHIPS (281) 878 839 858 (60) Long-term debt 99 – – – – – – – AND FEATURE FILM RIGHTS FINITE-LIFE PROGRAM (110) (845) 874 716 645 716 645 10 – – – – – – – – , for , for OTHER 235 229 489 469 260 234 (25) (36) (37) 41 43 , for leases committed Commitmentsandcontingencies,forleasescommitted See Note 33, but notyetcommencedasatDecember 31, 2020. – – – – – 13,744 12,019 (2,515) (2,517) 6,757 1,259 8,413 5,331 5,262 TOTAL (297) (148) (845) 810 929 (68) 11 BRANDS 2,409 2,409 2,409 2,409 – – – – – – – – – – – – AND OTHER SPECTRUM LICENCES 3,586 3,701 3,586 3,701 INDEFINITE-LIFE 116 (1) – – – – – – – – – – BROADCAST LICENCES 2,026 1,730 2,026 1,730 (296) – – – – – – – – – – – 150 199 2020 31 60 8,021 7,840 8,021 7,840 TOTAL (297) 116 – – – – – – – – – – INTANGIBLE 21,765 19,859 13,352 13,102 (2,515) (2,517) ASSETS 6,757 1,375 8,413 TOTAL (297) (445) (845) 148 213 810 929 2019 (68) 30 58 11 The followingtablesprovidesummarizedfinancialinformationwithrespecttoBCE’s associatesandjointventures. For moredetailsonour Note 19 INCOME STATEMENTS STATEMENTS FINANCIAL OF POSITION January 1,2019 January 1,2019 January 1,2019 associates andjointventures,seeNote 34, Total netincome(losses) Total netassets Transfers Additions Assets Acquired through business Acquired throughbusiness Amortization Amortization included in Amortization includedin ACCUMULATED AMORTIZATION FOR THEYEARENDEDDECEMBER31 FOR THEYEARENDEDDECEMBER31 DECEMBER 31,2019 FOR THEYEARENDED COST Expenses Revenues BCE’s shareofnetincome(losses) Other BCE’s shareofnetassets Retirements anddisposals Discontinued operations Discontinued operations Retirements anddisposals December 31,2019 December 31,2019 December 31,2019 Liabilities NET CARRYING AMOUNT Impairment losses combinations operating costs recognized inearnings

| nvestments in associates and joint ventures and associates in nvestments I NOTE 8 3 3 SOFTWARE 10,522 9,525 7,345 2,805 6,720 3,177 388 743 657 (69) (51) (52) 2 4 – – – Related party transactions CUSTOMER RELATION- 2,014 1,287 2,017 1,178 SHIPS 839 727 14 98 (3) 6 – – – – – – – AND FEATURE FILM RIGHTS FINITE-LIFE PROGRAM 1,004 (992) 704 704 716 716 – – – – – – – – – – – OTHER . 198 500 229 302 489 260 (14) (14) 45 (1) 4 – – – – – – 12,743 13,744 1,396 7,645 8,413 5,098 5,331 TOTAL (992) 886 657 (69) (65) (69) 16 (1) 4 6 BRANDS 2,409 2,409 2,409 2,409 – – – – – – – – – – – – – AND OTHER SPECTRUM LICENCES NOTE 3,587 3,586 3,587 3,586 INDEFINITE-LIFE 9 (1) – – – – – – – – – – – – BROADCAST LICENCES 2,111 2,026 2,111 2,026 BCE In (85) ( ( – – – – – – – – – – – – 1,359 3,953 1,505 1,351 2,448 756 2020 2020 c . 2020Annu 8 5 ) ) 8,107 8,021 8,107 8,021 TOTAL (86) – – – – – – – – – – – – a l R INTANGIBLE e 20,850 21,765 13,205 13,352 (2,545) (2,689) po ASSETS 2,398 4,045 1,356 1,396 7,645 8,413 TOTAL (147) (992) 698 886 657 r 2019 2019 (72) (69) (87) (65) (69) t 16

4 6 |

149

Notes to consolidated fi nancial statements Notes to consolidated fi nancial statements The recoverable amount for a CGU or group of CGUs is determined by The recoverableamountforaCGUorgroupofCGUsisdetermined by The recoverable amount for each of the Bell Wireless and Bell Wireline The followingtableprovidesdetailsaboutthechangesincarryingamountsofgoodwillforyearsendedDecember 31, 2020 and2019. Note 21 Note 20 As describedinNote 2, IMPAIRMENT TESTING RECOVERABLE AMOUNT (1) Cash flowsbeyondthefive-year periodareextrapolated using perpetuity growth rates. None of the perpetuity growth rates exceed the perpetuity growthrates.Noneofthe perpetuitygrowthratesexceedthe Media groupofCGUsisitsfairvalue lesscostsofdisposal. Bell MediagroupofCGUsdidnotresultinanimpairment ofgoodwill. During thesecondquarterof2020,weidentifiedindicatorsthat BCE’s groupsofCGUscorrespond toourreporting segments. expectations of operating performance. Revenue and cost projections for expectations ofoperatingperformance. Revenueandcostprojectionsfor capital andoperatingcashflows, based on past experienceandfuture capitalexpenditures,working expectations ofrevenue,segment profit, discounting five-yearcashflowprojectionsderivedfrombusinessplans groups of CGUs is its value in use. The recoverable amount for the Bell forthe discount rates.Impairment testingofgoodwillduring 2020 notablydeclines of theeconomicimpact oftheCOVID-19 pandemic, goodwill forourBellMediagroupofCGUsmaybeimpaired asaresult wheretherecoverableamountis of CGUstotherecoverableamount, reviewed by senior management. The projections reflect management’sreviewed by senior management. may beimpaired, bycomparing thecarryingvalue ofaCGUorgroup annually forimpairment orwhenthereisanindicationthatgoodwill long-term historical growthratesforthemarketsin whichweoperate. in advertising revenues, lower subscriber revenues and increases in in advertising revenues, lower subscriber revenues and increases in the BellMediagroupofCGUsalsoreflect market participant assumptions the higheroffairvalue lesscostsofdisposal orvalue inuse. 150 Total othernon-currentassets Acquisitions andother Acquisitions andother FOR THEYEARENDEDDECEMBER31 Derivative assets Other Publicly-traded andprivately-held investments Discontinued operations Balance atDecember31,2020 Balance atJanuary1,2019 Balance atDecember31,2019 Long-term receivables Investments Long-term wireless

These amountshavebeenpledgedassecurityrelatedtoobligationsforcertainemployeebenefitsandarenotav |

BCE In c . 2020Annu (1)

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| ther non-current assets non-current ther device financing Goodwill O a l R Significant accounting policies e po r t plan receivables , goodwill is tested , goodwillistested NOTE 3 . The recoverable amounts determined in a prior year for the Bell Wireless The recoverableamountsdeterminedinaprioryearfortheBellWireless The followingtableshowsthekeyassumptionsusedtoestimate The discountratesareapplied tothecashflowprojectionsandare For theBellMediagroupofCGUs,recoverable amountdetermined exceed theirrecoverableamounts. groups ofCGUsisbasedwouldnotcausetheircarryingamounts to estimate ofrecoverableamountstheBellWirelessorWireline carrying values byasubstantialmarginandhavebeencarriedforward group ofCGUs. derived fromtheweightedaveragecostofcapitalforeachCGUor rate or an increase of 0.4% in the discount rate would have resulted in rate oranincreaseof0.4%inthediscount ratewouldhaveresultedin annual impairment test. A decrease of (0.6%) in the perpetuity growth A decrease of (0.6%) in the perpetuity growth annual impairment test. any reasonablepossible changeinthekeyassumptionsonwhich and used in the impairment test forthe current year. We believe that and Bell Wireline groups of CGUs exceed their corresponding current recoverable amountsofthegroupsCGUs. its recoverableamountbeingequal toitscarryingvalue. in thesecondquarterof 2020 hasbeencarriedforwardandusedinthe GROUPS OFCGU Bell Media Bell Wireline Bell Wireless WIRELESS 3,046 3,046 3,046 BELL s – – – ailable forgeneraluse. WIRELINE 4,612 4,681 4,675 (115) NOTE BELL 52 (6) 28 28 28 12 GROWTH RATE PERPETUITY 2,946 2,931 1,001 2,946 MEDIA 0.5% 1.0% 0.8% ASSUMPTIONS USED 128 126 167 399 2020 BELL 92 89 15 – – DISCOUNT 10,604 10,658 10,667 8.5% 6.0% 9.1% (115) 129 128 200 716 111 RATE 2019 BCE 83 65 52 9

The following table provides further details on our securitized trade The followingtable provides further details on our securitized trade Note 23 Note 22 CREDIT FACILITIES SECURITIZED RECEIVABLES TRADE $3 billion shall suchmaximumamountofnotes exceed (1) (1) (2) Our securitizedtradereceivables programsarerecordedasfloating paper programsuptothemaximumaggregateprincipal amountof Bell Canada may issue notes under its Canadian and U.S. commercial Bell CanadamayissuenotesunderitsCanadianandU.S.commercial on December 31, 2021 andDecember 1, 2022. rate revolving loanssecuredbycertaintradereceivables andexpire receivables programs. Total tradepayables andotherliabilities Total debt duewithinoneyear Trade payables andaccruals Average interestrate Securitized tradereceivables Severance andothercostspayable FOR THEYEARENDEDDECEMBER31 FOR THEYEARENDEDDECEMBER31 FOR THEYEARENDEDDECEMBER31 CRTC deferralaccountobligation Commodity taxespayable Compensation payable Other currentliabilities Provisions Derivative liabilities Maple LeafSports andEntertainmentLtd.(MLSE)financialliability Long-term debtduewithinoneyear Notes payable Loans securedbytradereceivables commercial paper of $274 million in U.S. dollars ($349 million in Canadian dollars) and $1,502 million in U.S. dollars ($1,951 million in Canadian dollars) as at December 31, 2020 in Canadian dollars) as at December 31, 2020 inU.S.dollars ($1,951 million in Canadian dollars) and $1,502 million in U.S. dollars ($349 million commercial paper of $274 million Included inlong-termdebtduewithinoneyearisthecurrentp Includes Represents BCE’ contracts. SeeNote 28, 2019,respectively,whichwereissuedunderourU.S.commercialpaper programandhavebeenhedgedforforeigncurrencyfluctuationsthroughforward currency and December 31, Fund exerciseitsputoption.Theobligationtorepurchaseismarkedmarketeachreporting periodandthegainorlossisrecordedin throughout theyear in either Canadian or U.S. currency provided that at no time in eitherCanadianorU.S.currency providedthatatnotime (1)

s obligationtorepurchasetheBCEMasterTrust Fund’s (Master Trust Fund) 9%interestinMLSEatapricenotlessthananagreedminimumshouldtheMasterTrust | | rade payables and other liabilities ebt due within one year T D Financial andcapitalmanagement (2) 2,007 1.58% 2020 $3.5 billion , foradditionaldetails. ortion ofleaseliabilities$754 millionand$775 millionasatDecember 31, 2020December 31,2019,respectively. in Canadian in Canadian (1) 2,185 2.79% 2019 The buyers will reinvest the amounts collected by buying additional The buyerswillreinvesttheamountscollectedbybuyingadditional which meansthatweareexposed tocertainrisksofdefaultonthe Canada’s committedsupporting revolving andexpansion creditfacilities We haveprovidedvarious creditenhancementsintheformof We continuetoservicethesetradereceivables. Thebuyers’interestin have no further claim on our other assetsifcustomers do not pay the currency whichequalstheaggregateamountavailable under Bell overcollateralization andsubordinationofourretainedinterests. revolving andexpansion creditfacilities maybedrawnatanytime. amounts securitized. as atDecember 31, 2020.Thetotalamountofthenetavailable committed amounts owed. agreements expireorareterminated.Thebuyersandtheirinvestors interests inourtradereceivables untilthesecuritizedtradereceivables the collectionofthesetradereceivables ranksaheadofourinterests, NOTE 28 28 24 DECEMBER 31,2020 INTEREST RATE AT WEIGHTED AVERAGE 5.52% 1.10% 0.24% NOTE 28 28 28 25 Other (expense)income BCE In 3,935 2,417 1,050 2,595 408 592 975 392 149 2020 2020 c 33 23 13 53 69 . 2020Annu intheincomestatements. a l R e po 3,954 3,881 1,050 2,604 1,994 395 101 589 837 135 2019 2019 r 35 13 33 49 t

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151

Notes to consolidated fi nancial statements Notes to consolidated fi nancial statements • • • • The tablebelowisasummaryofourtotalbankcreditfacilitiesatDecember 31, 2020. Note 24 Some ofourdebtagreements: Some ofourcreditagreements: RESTRICTIONS RESTRICTIONS (2) (1) (1) which havebeenissuedinU.S.dollars.Alldebtsecuritiesbearafixed interestrate. We areincompliance withallconditionsandrestrictions undersuchdebtagreements. We areincompliancewithallconditionsandrestrictionsundersuchcreditagreements. Bell Canada’s debtsecuritieshavebeenissuedinCanadiandollarswiththeexceptionof issuedunderthe 2016 U.S.trustindenture, 152 Total debt Total long-termdebt Total committedcreditfacilities Total non-committedcreditfacilities Total committedandnon-committedcreditfacilities FOR THEYEARENDEDDECEMBER31 Committed creditfacilities Unamortized debtissuancecosts Other Debt securities Net unamortized(discount)premium Less: Lease liabilities

relevant debtagreements require ustomakeanofferrepurchase certainseriesofdebtsecuritiesupon theoccurrenceofachangecontrolevent asdefinedinthe require ustoofferrepay andcancelthecreditagreementupon achangeofcontrolBCEorBellCanada require ustomeetspecificfinancialratios impose covenantsandnewissuetests

At December Bell Canada’ outstanding isincludedindebtduewithinoneyear. cross currencyinterestrateswaps.SeeNote 28, As ofDecember 1996 trustindenture(subordinated) 1976 trustindenture 1997 trustindenture Amount duewithinoneyear 2016 U.S.trustindenture 2011 trustindenture Other Unsecured revolving andexpansion creditfacilities |

BCE In c . 2020Annu s $2.5 billioncommittedrevolving creditfacilityexpiresinNovember 2024andits$1 billioncommittedexpansion creditfacilityexpiresinNovember 2022. 31, 2020 and 2019, notes issued under the 2016 U.S. trust indenture totaled $1,750 million in U.S. dollars, and have been hedged for foreign currency fluctuations through inU.S.dollars,andhavebeenhedgedforforeigncurrencyfluctuationsthrough U.S.trust indenture totaled$1,750 million and2019,notesissuedunderthe 2016 31, 2020

31, 2020, Bell Canada’s outstanding commercial paper included $274 million in U.S. dollars ($349 million inCanadiandollars).AllofBellCanada’s commercialpaper inU.S.dollars($349 million 31, 2020,BellCanada’s outstandingcommercialpaper included$274 million | ng-term debt Lo a l R e (1) po r t Financial andcapitalmanagement (1) (2) AVAILABLE 3,500 3,606 1,939 5,545 TOTAL , foradditionaldetails. NOTE 106 23 DECEMBER 31,2020 INTEREST RATE AT WEIGHTED AVERAGE 4.91% 8.21% 4.41% 4.00% 9.54% 3.68% DRAWN – – – – – 2021–2065 2026–2031 2048–2049 2021–2054 2022–2050 LETTERS OFLETTERS MATURITY 1,082 1,188 CREDIT 2024 106 106 – OUTSTANDING COMMERCIAL 24,970 23,906 16,400 4,356 2,228 1,100 PAPER (975) 349 386 275 225 349 349 2020 (19) (70) – – AVAILABLE 23,300 22,415 14,500 3,151 4,599 2,273 1,100 3,151 4,008 (837) 328 275 225 857 2019 (63) NET 15 – Note 25 3.15% Series M-30 MTN debentures,havinganoutstandingprincipal 3.15% SeriesM-30 MTN AROs reflectmanagement’s bestestimatesofexpectedfuturecoststorestorecurrentleasedpremisestheir originalconditionpriortolease All outstanding debt securities have been issued under trust indentures All outstandingdebtsecuritieshavebeenissuedundertrustindentures Series M-24 MTN debentures, having an outstanding principal amount Series M-42 medium termnote(MTN)debentures,havinganoutstanding $1 billion, whichmatureonMarch 12, 2025. $750 million, whichmatureonAugust 16, 2027. (1) 2020 On September 14, 2020, Bell Canada redeemed, prior to maturity, its 2020,BellCanadaredeemed,priortomaturity,its On September 14, On March 16, 2020, Bell Canada redeemed, prior to maturity, its 4.95% 2020,BellCanadaissued3.35% Series M-47 MTN On March 25, On May 14, 2020 andFebruary 13, 2020,BellCanadaissued3.50%Series On May 14, 2020,BellCanadaissued2.50%SeriesM-52 MTN debentures 2020, Bell Canada issued 1.65% Series M-53 MTN On August 14, On November 6, 2020,BellCanadaredeemed,priortomaturity,its2.00% principal 2021. whichweredueonOctober 1, amountof$850 million, January 1,2020 M-51 MTN debentures under its 1997 trustindenture, withaprincipal debenturesunderits 1997 M-51 MTN on September 30, 2050. of $500 million, whichweredueonMay 19, 2021. trustindenture,withaprincipaldebentures underits 1997 amountof trustindenture,withaprincipaldebentures underits 1997 amountof certain seriesareredeemableatBellCanada’s optionpriortomaturity amount of$750 million, whichweredueonSeptember 29, 2021. under its 1997 trustindenture,withaprincipal amountof$1 billion, which amount of$500 million and$750 million, respectively,whichmature mature onMay 14, 2030. at theprices,timesandconditionsspecifiedforeachseries. and areunsecured.Alldebtsecuritieshavebeenissuedinseries ets to which inception. CashoutflowsassociatedwithourAROliabilitiesaregenerally expectedtooccurattherestorationdatesofassetswhich they relate,whicharelong-termin nature.Thetimingandextentofrestorationworkthatwillbeultimately requiredforthesesitesisuncertain. Additions FOR THEYEARENDEDDECEMBER31 Current Discontinued operations Reversals Usage December 31,2020 December 31,2020 Non-current

Other includesenvironmental,legal,v

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Provisions acant space andotherprovisions. Series M-27 MTN debentures, having an outstanding principal amount Series M-37 debentures, havinganoutstandingprincipal amountof Series M-37 debentures, $550 million, whichmatureonSeptember 10, 2029. $400 million, whichweredueonJune 12, 2020. Financial andcapitalmanagement 2019 with aprincipal amountof$600 million inU.S.dollars($808 million in which matureonJanuary 29, 2025.Inaddition,onthesamedate,Bell On June 13, 2019, Bell Canada redeemed, prior to maturity, its 3.25% 2019,BellCanadaredeemed,priortomaturity,its3.25% On June 13, On September 10, 2019, Bell Canada issued 2.90% Series M-50 MTN 2019,BellCanadaissued2.90%SeriesM-50 MTN On September 10, Canada issued4.30%SeriesUS-2 Notes underits 2016 trustindenture, On May 13, 2019,BellCanadaissued2.75%SeriesM-49 MTN debentures Canadian dollars),whichmatureonJuly 29, 2049. On May 24, 2019, Bell Canada redeemed, prior to maturity, its 3.54% 2019,BellCanadaredeemed,priortomaturity,its3.54% On May 24, (expense) incomeinthestatements. (expense) incomeinthestatements. For the year ended December 31, 2020, we incurred early debt For theyear ended December 31, For the year ended December 31, 2019,weincurredearlydebt For theyearendedDecember 31, During the first half of 2020, Bell Canada drew $1,450 million in U.S. inU.S. During thefirsthalfof2020,BellCanadadrew$1,450 million of $1 billion, whichweredue SeeNote 28, contracts usedtohedgetheseborrowingsweresettled. the forward exchange forward contracts. Accordingly, in Q2 2020, werehedgedforforeigncurrencyfluctuationsthrough debt, dollars ($2,035 million inCanadiandollars)underitscommittedcredit debentures under its 1997 trustindenture,withaprincipaldebentures underits 1997 amountof under such facilities. The borrowings, which were included in long-term under suchfacilities.Theborrowings,whichwereincludedinlong-term under its 1997 trustindenture, with a principal amount of $600 million, redemption charges of $50 million, whichwererecordedin redemption chargesof$50 million, redemption charges of $18 million facilities. InQ2 2020, BellCanadarepaid alloftheU.S.dollarborrowings NOTE 22 27 3 ARO 199 187 202 202 on 21 15 (1) (8) (9) s June 17, 2020. , foradditionaldetails. , which were recorded in BCE In OTHER 132 168 206 206 c (20) 95 38 . 2020Annu (1) – (1) a l R e po TOTAL 331 116 355 408 408 r (28) Other Other Other t 53 (2) (9)

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153

Notes to consolidated fi nancial statements Notes to consolidated fi nancial statements The interestrateriskismanagedusingaliabilitymatchingapproach, The longevityriskismanagedusingaswap, whichreduces The followingtableshowsthechangeinpost-employment benefitobligationsandthefair value ofplanassets. Note 26 POST-EMPLOYMENT COST BENEFIT PLANS (2) (1) COMPONENTS OFPOST-EMPLOYMENT BENEFIT(OBLIGATIONS) ASSETS PLANS SERVICECOST COMPONENTS OFPOST-EMPLOYMENT BENEFIT which reducestheexposure oftheDBplanstoamismatchbetween We operateourDBandDCpensionplansunderapplicable Canadian We provide pension and other benefits for most of our employees. These We providepensionandotherbenefitsformostofouremployees.These Pension Fund Committee,acommitteeofourboarddirectors. decisions, contributions to DB plans and the selection of the DC plans decisions, contributions to DB plans and the selection of the DC plans maximum DB funding requirements. Plan assets are held in trust, maximum DBfundingrequirements.Planassetsareheldintrust, and the oversight of governance of the plans, including investment ofgovernancetheplans,includinginvestment and the oversight and provincialpensionlegislation,whichprescribesminimum include DBpensionplans,DCplansandOPEBs. investment growthandobligationgrowth. investment optionsofferedtoplanparticipants, lieswiththeRiskand the exposure oftheDBplanstoanincreaseinlifeexpectancy. 154 Total post-employment benefitplansservicecost FOR THEYEARENDEDDECEMBER31 Effect ofassetlimit Plan asset(deficit) Post-employment benefitasset(liability),December31 Fair value ofplanassets,December 31 Fair value ofplanassets,January1 Post-employment benefit obligations Post-employment benefitobligations,December31 OPEBs Post-employment benefitassets DC pension Post-employment benefitobligations,January1 DB pension Less:

The actualreturn onplanassetswas $3,434 millionor13.7% in 2020and$3,633 million or16.0%in2019. Actuarial gains(losses) includeexperiencegainsof$2,613 millionin 2020 and$2,525 millionin2019. Actuarial gains Actuarial losses Current servicecost Capitalized benefitplanscost Employee contributions Employer contributions Benefit payments Expected returnonplanassets Other Employee contributions Benefit payments Interest onobligations |

BCE In c . 2020Annu

(1) | (1) ost-employment benefit plans P a l R e po r t (2) (113) (219) (269) 2020 65 (2) (109) (193) (246) 2019 59 (3) (27,149) (25,650) 27,785 25,530 The statements of comprehensive income include the following amounts The statementsofcomprehensiveincomeincludethefollowingamounts PLANS FINANCINGCOST COMPONENTS OFPOST-EMPLOYMENT BENEFIT (1) (2) before incometaxes. Total interestonpost-employment benefit FOR THEYEARENDEDDECEMBER31 Cumulative losses recognized directly in equity, inequity, Cumulative lossesrecognizeddirectly Cumulative losses recognized directly in equity, inequity, Cumulative lossesrecognizeddirectly OPEBs DB pension (1,342) (1,830) 2,632 1,342 1,277 cumulative actuarial losses recognized in the statements of comprehensive income (706) (782) (219) DB PENSIONPLANS 571 636 183 772 2020 The cumulativedecreaseintheeffectofassetlimitrecognizedstatements The comprehensive incomeis$201 millionin2020. are $2,215 millionin2020. January 1 Actuarial gains in other comprehensive Actuarial gainsinothercomprehensive (65) (10) obligations December 31 Increase in the effect of the asset limit Increase intheeffectofassetlimit 10 – continuing operations in other comprehensive income from in other comprehensive incomefrom income from continuingoperations (25,650) (23,404) 25,530 23,071 (1,326) (2,498) 2,742 1,326 (140) (120) (698) (872) (193) 180 853 558 2019 (20) (10) 10 1 (1,256) (1,600) (1,256) (1,529) (1,256) (2) 344 320 2020 (67) (90) (46) 61 20 10 67 (2) OPEB PLANS – – – – – (1,209) (1,529) (1,209) (1,469) (1,209) (1) 320 287 2019 (77) (80) (55) 72 27 11 77 (3) 1 – – – – (28,749) (27,179) 28,129 25,850 (2,014) (2,701) (1,409) (1,920) (1,962) 2,652 1,409 1,277 (620) (828) (221) (685) 732 244 782 2020 2020 2020 (46) (45) (36) (10) (65) (10) 10 – TOTAL (27,179) (24,873) 25,850 23,358 (1,329) (1,403) (2,578) (1,907) (1,349) (2,701) (2,892) 2,769 1,403 (927) (196) 252 864 558 191 2019 2019 2019 (20) (10) (63) (44) (19) 10 2 –

• • • • The followingtableshowsasensitivityanalysisofkeyassumptions usedtomeasurethenetpost-employment benefitobligationsandthenet The weightedaveragedurationofthepost-employment benefit The followingtableshowsthefundedstatusofourpost-employment benefitobligations. SENSITIVITY ANALYSIS (1) (1) SIGNIFICANT ASSUMPTIONS (1) FUNDED STATUS OFPOST-EMPLOYMENT BENEFITPLANSCOST (2) post-employment benefitplanscostforourDBpensionandOPEBplans. plans andOPEBplans.Theseassumptionsarelong-term,whichisconsistentwiththenatureofpost-employment benefitplans. We assumedthefollowingtrendratesinhealthcarecosts: We used the following key assumptions to measure the post-employment benefit obligations and the net benefit plans cost for the DB pension obligation is15 years. FOR THEYEARENDEDDECEMBER31 FOR THEYEARENDEDDECEMBER31 FOR THEYEARENDEDDECEMBER31 Fair value ofplanassets Plan surplus(deficit) Discount rate Post-employment benefitobligations Present value ofpost-employment Net post-employment benefit planscost Life expectancyatage65

of 4% decreasing to4.0%over20 years an annual increase in the cost of other covered healthcare benefits an annualincreaseinthecostofothercoveredhealthcarebenefits an annualincreaseinthecostofcoveredhospitalbenefits3.7% an annualincreaseinthecostofcovereddentalbenefits4% an annualincreaseinthecostofmedication6.5%for 2020 artially fundedplansconsistofsupplementary executiveretirementplans(SERPs)foreligibleemployeesandcertainOPEBs.Thecompany partially fundstheSERPsthroughletters Cost oflivingindexationrateisonlyap Cost oflivingindexationrateisonlyap Our unfundedplansconsistofcertainOPEBs,whicharep The p of creditandaretirementcompensationarrangementaccountwithCanadaRevenueAgency.Certainpaid-up lifeinsurancebenefitsarefundedthroughcontracts. Cost oflivingindexationrate Cost oflivingindexationrate Rate ofcompensationincrease Discount rate Rate ofcompensationincrease Discount rate Life expectancyatage65(years) Life expectancyatage65(years) benefit obligations (1) (1) plicable toDBpensionplans. plicable toDBpensionplans. aid asclaimsareincurred. (26,421) 27,727 1,306 2020 FUNDED (24,961) 25,474 ASSUMPTION CHANGE IN 513 2019 1 year 0.5% The following table shows the effect of a 1% change in the assumed The followingtableshowstheeffectofa1%changeinassumed Assumed trend rates in healthcare costs have a significant effect on Assumed trendratesinhealthcarecostshaveasignificanteffecton trend ratesinhealthcarecosts. the amountsreported forthehealthcareplans. Total serviceandinterestcost BENEFITS –INCREASE/(DECREASE) EFFECT ONPOST-EMPLOYMENT Post-employment benefitobligations (1,609) (2,011) PARTIALLY FUNDED 402 2020 IMPACT ONNETPOST-EMPLOYMENT ASSUMPTION INCREASE IN BENEFIT PLANSCOSTFOR2020– INCREASE/(DECREASE) (76) 38 (1,542) (1,918) 376 (1) 2019 ASSUMPTION DECREASE IN (317) (317) 2020 UNFUNDED (38) – 64 (2) (300) (300) IMPACT ONPOST-EMPLOYMENT BENEFIT OBLIGATIONS AT DECEMBER31,2020– 2019 DB PENSIONPLANSANDOPEB DB PENSIONPLANSANDOPEB ASSUMPTION 1% INCREASE INCREASE IN BCE In – (1,897) 1,092 INCREASE/(DECREASE) 23.2 23.2 2.25% 2.25% 110 2020 2020 c 1.6% 1.6% 3.2% 2.6% . 2020Annu (28,749) 3 28,129 (620) 2020 TOTAL a 1% DECREASE ASSUMPTION DECREASE IN l R (27,179) e 25,850 (1,329) (1,092) po 2,127 23.1 23.2 2.25% 2.25% r 2019 2019 2019 (95) 1.6% 1.6% 4.0% 3.1% t (3)

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155

Notes to consolidated fi nancial statements Notes to consolidated fi nancial statements The followingtableshowsthetargetallocationsfor 2020 andtheallocationofourpost-employment benefitplanassetsatDecember 31, 2020 The followingtableshowstheamountswecontributedtoDBand DC pensionplansandthepayments madetobeneficiariesunderOPEBplans. The followingtableshowsthefairvalue oftheDBpensionplanassetsforeachcategory. The investment strategyfor the post-employment benefitplanassetsisto maintain a diversified portfolio of assetsinvested in aprudentmanner The Bell Canada pension plan has an investment arrangement which The BellCanadapensionplanhasaninvestmentarrangementwhich 0.53% oftotalplanassets,atDecember 31, 2019. Alternative investmentsincludedaninvestmentinMLSEof$149 million, shares, or 0.01% of total plan assets, at December 31, 2020 and shares, or 0.01% of total plan assets, at December 31, 2020 POST-EMPLOYMENT BENEFITPLANASSETS plan assets,atDecember 31, 2019. plan assets,atDecember 31, 2019. We expecttocontributeapproximately $180 million toourDBpensionplansin2021,subjectactuarial valuations beingcompleted.Weexpect Debt securities included approximately $141 million of Bell Canada ofBellCanada Debt securitiesincludedapproximately $141 million ofBCEcommon Equity securitiesincludedapproximately $3 million hedges part ofitsexposure topotential increasesinlongevity,which covers approximately $4 billion ofpost-employment benefitobligations. or 0.54% of total plan assets, at December 31, 2020 and $135 million, or and debentures, or0.51%oftotalplanassets,atDecember 31, 2020 and 2019. approximately $53 million of Bell Canada debentures, or 0.21% of total ofBCEcommonshares,or0.06%total approximately $15 million to contributeapproximately $120 million totheDCpensionplansandpay approximately $70 million tobeneficiaries underOPEBplansin2021. to maintainthesecurityofbenefits. 156 Total Total Alternative investments ASSET CATEGORY FOR THEYEARENDEDDECEMBER31 FOR THEYEARENDEDDECEMBER31 Contributions/payments Observable marketsdata Debt securities Equity securities Non-observable marketsinputs

Alternative investments Debt securities Equity securities |

BCE In Canadian Canadian Other Real estate Private equities Foreign Foreign Hedge funds Money market c . 2020Annu a l R e po r t (183) 2020 DB PLANS (180) 2019 The fairvalue ofthearrangementisincludedwithinotheralternative CASH FLOWS projections and future service benefits. Changes in these factors could projections andfutureservicebenefits.Changesinthesefactorscould We contributetotheDCpensionplansasemployeesprovideservice. We areresponsible foradequatelyfundingourDBpensionplans.We cause actual future contributions to differ from our current estimates cause actualfuture contributions to differfrom our current estimates benefit plans in the future, which could have a negative effect on our benefit plansinthefuture,which couldhaveanegativeeffectonour reflect actuarialassumptionsaboutfutureinvestmentreturns,salary and couldrequireustoincreasecontributionsourpost-employment make contributionstothembasedonvarious actuarialcostmethods liquidity andfinancialperformance. investments. As a hedging arrangement of the pension plan, the that are permitted by pension regulatory authorities. Contributions transaction requiresnocashcontributionsfromBCE. (114) 2020 DC PLANS TARGET ALLOCATION WEIGHTED AVERAGE 60%–100% 0%–50% 0%–40% (110) 2020 2019 DECEMBER 31,2020 TOTAL PLANASSETSFAIRVALUE 27,785 13,361 1,033 1,200 2,564 2,913 1,027 5,242 100% 17% 60% 23% 369 2020 2020 (61) 76 OPEB PLANS DECEMBER 31,2019 25,530 13,216 1,001 2,119 2,385 1,017 4,534 100% 16% 62% 22% 948 219 2019 2019 (72) 91 • • • • • The followingtableprovidesthefairvalue detailsofotherfinancialinstrumentsmeasuredatamortizedcostinthestatements position. The followingderivative instrumentswereoutstandingduring 2020 Note 28 Note 27 FINANCIAL MANAGEMENT FINANCIAL DERIVATIVES We usederivative instrumentstomanageourexposure toforeign Management’s objectives are to protect BCE and its subsidiaries on a equity pricerisk. currency risk, interestrate risk, commodityprice risk and changes in of resultsfromvarious financialrisks,includingcreditrisk, liquidity consolidated basisagainstmaterialeconomicexposures andvariability risk, foreigncurrency risk, interest rate risk, commodity price risk and and/or 2019: the priceofBCEcommonshares. Total othernon-currentliabilities FOR THEYEARENDEDDECEMBER31 CRTC deferral account CRTC deferralaccount CRTC deferralaccountobligation Debt securities and Debt securitiesand Other Provisions Derivative liabilities other debt obligation Long-term disabilitybenefitsobligation

swaps thathedgeforeigncurrencyriskonaportion ofourdebtdue U.S. commercialpaper within oneyearandlong-termdebt on preferredshares our share-basedpayment plans exposure and equitypriceriskrelatedtocommonsharesissuedunder interest rate swaps and options that hedge future dividend rate resets interest rateswapsandoptionsthathedgefuturedividendresets fuel swapsthatmitigatethepurchasecostof forward contractsonBCEcommonsharesthatmitigatethecashflow foreign currencyforwardcontractsandcrossinterestrate foreign currencyriskofcertainanticipated purchasesandsales foreign currencyforwardcontractsandoptionsthatmanagethe

| | ther non-current liabilities non-current ther inancial and capital management and inancial O F Trade payables and CLASSIFICATION Debt due within one year Debt duewithinoneyear other liabilities and other other liabilitiesand and long-termdebt non-current liabilities

FAIR VALUE METHODOLOGY Quoted marketpriceofdebt Present value ofestimated using observable market interest rates future cash flows discounted future cashflowsdiscounted The carryingvalues ofourcashandequivalents, tradeand FAIR VALUE wireless which reflect varying degreesofrisk. Incometaxesandotherexpenses Certain fairvalue estimatesareaffectedbyassumptionswemakeabout payable, notespayable andloanssecuredbytradereceivables Fair value isthepricethatwouldbereceivedtosellanassetorpaid to compensation payable, severanceandothercostspayable, interest other receivables, dividendspayable, tradepayables andaccruals, net amountsthatwouldberealizediftheseinstrumentsweresettled. thefair reflected inthefair values maynotbethe values. Asaresult, at themeasurementdate. approximate fair value as they are short-term. The carrying value of is reduced by an allowance for doubtful accounts and an allowance is reducedbyanallowancefordoubtfulaccountsand transfer aliabilityinanorderlytransactionbetweenmarketparticipants for revenueadjustments. that theiraverageremainingdurationisshortandthecarryingvalue that maybeincurredondisposition offinancialinstrumentsarenot the amountandtimingoffuturecashflowsdiscountrates,all device financing 23, 24 22, 27 NOTE CARRYING 20,525 plan receivables approximates fairvalue given VALUE DECEMBER 31,2020 82 NOTE 28 28 25 24,366 VALUE FAIR 86 BCE In 1,145 262 361 355 2020 c 69 98 . 2020Annu CARRYING 18,653 VALUE DECEMBER 31,2019 82 a l R e 20,905 po VALUE 871 192 305 298 r 2019 FAIR 85 69 t

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Notes to consolidated fi nancial statements Notes to consolidated fi nancial statements The followingtableprovidesthechangeinallowancefordoubtful The followingtableprovidesthefairvalue detailsoffinancialinstrumentsmeasuredatfair value inthestatementsoffinancial position. CREDIT RISK (2) (1) (3) will be able to meet their obligations. We regularly monitor our credit will beabletomeettheirobligations.Weregularlymonitorourcredit financing activities,themaximumexposure ofwhich isrepresentedby period oftime. We areexposed tocreditriskifcounterparties to ourtradereceivables, We are exposed to credit risk from operating activities and certain expense if the account has not been collected after a predetermined expense iftheaccounthasnotbeen collectedafterapredetermined device financingplanreceivables, whichreflectsanincreasein 2020 customer base.Therewasminimalcreditriskrelatingtoderivative risk andcreditexposure. accounts for trade receivables, are unabletomeettheirobligations.Theconcentrationofcreditrisk mainly asaresultoftheimpact oftheCOVID-19 pandemic. In many instances, trade receivables to bad debt are written off directly instruments atDecember 31, 2020 and2019.Wedealwithinstitutions including wireless equipment plan receivables, and derivative instruments that have investment-grade credit ratings and we expect that they that haveinvestment-gradecreditratingsandweexpectthey from our customers is minimized because we have a large and diverse from ourcustomersisminimizedbecausewehavealargeanddiverse the carryingamountsreported inthestatementsoffinancial position. 158 Additions Usage andreversals Other Other Publicly-traded and Publicly-traded and Balance, January1 Publicly-traded and Publicly-traded and Balance, December31 Derivative financialinstruments Derivative financialinstruments December 31,2020 December 31,2019 privately-held investments privately-held investments MLSE financialliability MLSE financialliability able marketdatasuchasequityprices,interestrates,swapratecurvesandforeigncurrencyexchangerates.

Represents BCE’ Non-observ Observ option. Theobligationtorepurchaseismarkedmarketeachreporting periodandanygainorlossisrecordedin level 3 financialinstruments. |

BCE In c . 2020Annu in a significant increase (decrease) to our able marketinputssuchasdiscountedcashflowsandearningsmultiples.Areasonablechangeinourassumptionswouldnotresultasignificantincrease(decrease)to s obligationtorepurchasetheMasterTrust Fund’s 9%interestinMLSEatapricenotlessthananagreedminimumprice,shouldtheMasterTrust Fund exerciseitsput

(3) (3) a l R e po r t including the current portion of wireless Trade payables andother liabilities Trade payables andotherliabilities CLASSIFICATION Other non-currentassets Other non-current assets Other non-currentassets Other non-currentassets Other non-current assets Other non-currentassets Other current assets, trade Other currentassets,trade Other currentassets,trade payables andotherliabilities, payables andotherliabilities, and liabilities and liabilities non-current assetsandliabilities non-current assetsandliabilities NOTE 12 (134) (149) 2020 (62) 47 (114) 103 2019 (51) (62) NOTE 20 20 22 22 The followingtable provides further details on trade receivables, net The followingtableprovidesthechangeinallowancefordoubtful of allowancefordoubtfulaccounts. accounts forcontractassets. Trade receivables, netofallowancefordoubtful Trade receivables past due Trade receivables notpast due Additions AT DECEMBER31 Current Usage andreversals Balance, December31 Balance, January1 Balance, December31 Non-current 60 to120days Over 120days Under 60days accounts CARRYING VALUE (135) (149) 129 126 109 165 (51) 71 Other (expense)income ACTIVE MARKETSFOR QUOTED PRICESIN IDENTICAL ASSETS (LEVEL 1) 1 2 3 – – – – – FAIR VALUE OFASSET(LIABILITY) intheincomestatements. NOTE MARKET DATA OBSERVABLE 14 (LEVEL 2) 128 167 165 (51) – – – – (1) 3,265 2,574 214 432 2020 2020 (30) (29) (59) (31) (59) (68) 45 40 NON-OBSERVABLE MARKET INPUTS (LEVEL 3) 2,919 2,082 (135) (149) 232 541 127 123 2019 2019 (36) (32) (68) (28) (68) (58) (73) (58) 64 33 – – (2) The followingtableprovidesfurtherdetailsonouroutstandingforeigncurrencyforwardcontractsandoptionsasatDecember 31, 2020. These foreigncurrencyforwardcontractsmaturedinQ2 2020 and a The following tableis a maturityanalysisfor recognized financialliabilitiesat December 31, 2020 for eachof thenext five yearsand thereafter. statements, whichoffsetstheforeigncurrencygainonrepayment swaps tomanageforeigncurrencyriskrelatedanticipated purchases CURRENCY EXPOSURES MARKET RISK (1) LIQUIDITY RISK was recognizedinOther(expense)income Our cashandequivalents, cashflowsfromoperationsand our possible capitalmarketsfinancingareexpectedtobesufficientfund We arealsoexposed toliquidityriskforfinancialliabilitiesduewithinoneyearasshowninthestatementsof position. We use forward contracts, options and cross currency interest rate We useforwardcontracts,optionsandcrosscurrencyinterestrate ($2,039 million inCanadian dollars) tohedge the foreign currencyrisk of drawdownsunderthecreditfacilities. inU.S.dollars contracts withanotionalamountof$1,453 million ld expect operations andfulfillourobligationsastheybecomedue.Shouldcashrequirementsexceedtheabovesourcesofcash,wewouldexpect associated with amounts drawn under our committed credit facilities. associated withamountsdrawnunderourcommittedcreditfacilities. and salescertainforeigncurrencydebt. In the first half of 2020, we entered into foreign currency forward In thefirsthalfof 2020,we entered into foreign currency forward loss of$14 million relatingtotheseforeigncurrencyforwardcontracts to coversuchashortfallbydrawingonexistingcommittedbankfacilitiesandnewones,theextentavailable. Total TYPE OFHEDGE AT DECEMBER31,2020 Cash flow–putoptions Cash flow–calloptions Cash flow Cash flow Cash flow Cash flow Economic –calloptions Economic Economic –calloptions Economic –putoptions Economic –putoptions MLSE financialliability Loan securedbytradereceivables Net (receipts)payments oncrosscurrency Interest payable on long-term debt, notespayable Interest payable onlong-termdebt, Lease liabilities Notes payable Long-term debt

Includes imputedinterestof$950 million. and loansecuredbytradereceivables basis swaps (1) CURRENCY CAD USD USD USD USD USD USD USD USD USD PHP BUY in the consolidated income intheconsolidatedincome TO RECEIVE NOTE AMOUNT 23 23 24 22 2,174 130 231 231 479 274 675 120 12 17 99 3,576 1,050 921 844 149 392 221 2021 (1) CURRENCY CAD CAD CAD CAD CAD CAD CAD CAD CAD CAD USD SELL At December 31, 2020, we had outstanding cross currency interest 2020, wehadoutstandingcrosscurrencyinterest At December 31, A 10%depreciation(appreciation) inthevalue oftheCanadiandollar A 10%depreciation(appreciation) inthevalue oftheCanadiandollar ($19 million) recognized in net earnings from continuing operations recognized in net earnings from continuingoperations ($19 million) ($2,301 million inCanadiandollars), tohedgetheU.S.currencyexposure of ourSeriesUS-1 and SeriesUS-2 Notes maturingin 2048 and2049, recognized inOthercomprehensiveincomefromcontinuingoperations recognized inOthercomprehensiveincomefromcontinuingoperations relative totheU.S.dollarwouldresultinagain(loss)of$7 million in U.S. dollars rate swaps with a notional amount of $1,750 million at December 31, 2020,withallothervariables heldconstant. relative tothePhilippine pesowouldresultinagain(loss)of$4 million at December 31, 2020,withallothervariables heldconstant. ($215 million) andagain(loss)of$245 million at December 31, 2020 respectively. SeeNote 24, 3,440 1,785 832 824 2022 (1) – – – 3,032 1,665 AMOUNT 611 756 2023 TO PAY 180 295 299 614 349 885 154 123 – – – – 17 59 12 2,430 1,278 Long-term debt,foradditionaldetails. 459 693 2024 – – – – MATURITY 2021 2022 2022 2022 2021 2021 2021 2021 2021 2021 2022 3,172 2,125 406 641 2025 BCE In – – – – Anticipated transactions Anticipated transactions Anticipated transactions Anticipated transactions Anticipated transactions Anticipated transactions Anticipated transactions Anticipated transactions Anticipated transactions Anticipated transactions c . 2020Annu 23,304 13,540 2,077 7,623 Commercial paper THERE- AFTER 64 – – – a HEDGED ITEM l R e 38,954 11,381 20,614 po 5,306 1,050 TOTAL 149 392 r t 62

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Notes to consolidated fi nancial statements Notes to consolidated fi nancial statements Therefore, theyareunlikelytobecomparable tosimilarmeasures These ratios do not have any standardized meaning under IFRS. The key ratios that we use to monitor and manage our capital structure A 1% increase (decrease) in interest rates would result in an increase A 1%increase(decrease)ininterestrateswouldresultan A lossof$6 million fortheyearendedDecember 31, 2020 relatingto CAPITAL MANAGEMENT Other currentassets, varying resetdatesin2021.Thefairvalue oftheseinterestrateoptions INTEREST RATE EXPOSURES EQUITY PRICEEXPOSURES (2) (1) Our definition of capital includes equity attributable to BCE shareholders, Our definitionofcapitalincludesequityattributabletoBCEshareholders, presented by other issuers. We use, and believe that certain investors presented byotherissuers.Weuse,andbelievethatcertaininvestors We havevarious capitalpolicies, proceduresandprocesseswhichare We useequityforwardcontractsonBCE’s commonsharesto December 31, 2020,wehadexceededthelimit ofourinternalnetdebt BCE preferredsharesin2020.A(loss)gainof($9 million) and$8 million (decrease) of$20 million and($26 million) innetearningsfromcontinuing expense ratio (2). of thecompany. andcashequivalents. debt, optimizing our cost of capital and maximizing shareholder return while share-basedcompensationplansandtheequitypricerisk equity settled of economically hedgethecashflowexposure relatedtothesettlement operations atDecember 31, 2020. utilized to achieve our objectives for capital management. These include These include utilized to achieve our objectives for capital management. and analysts use, our net debt leverage ratio and adjusted EBITDA to net interest expense ratio as measures of financial leverage and health net interestexpenseratioasmeasuresoffinancialleverageandhealth balancing theinterestsofourstakeholders. share-basedpayment plan.SeeNote 30,related toacash-settled range was2.0 are a net debt leverage ratio (1) and an adjusted EBITDA to net interest recognizedin wasanetliabilityof$6 million, at December 31, 2020 a notionalamountof$275 million tohedgethedividendratereseton non-current liabilities In 2020, we entered into interest rate options to economically hedge In 2020,weenteredintointerestrateoptionstoeconomicallyhedge In 2019, we entered into interest rate swaps, maturing in 2020, with In 2019,weenteredintointerestrateswaps,maturingin2020,with leverage ratiotargetrangeby0.43. in theconsolidatedincomestatements. the consolidatedincomestatements. these interest rate options is recognized in to net interest expense ratio target was greater than 7.5 times. At At to net interest expense ratio target was greater than 7.5 times. interestrateswapsisrecognizedin to these for theyearendedDecember 31, 2020 and2019,respectively,relating the dividendrateresetson$582 million ofourpreferredshareshaving based payments 160

and cashequivalents Our adjustedEBITD Our netdebtleverage ratio representsnetdebtdividedbyadjusted EBITD income statements. shown inourincomestatements. Netinterestexpenseisnet expenseasshowninourstatementsofcash flowsplus50%ofdeclaredpreferredshare dividendsasshowninour |

BCE In c . 2020Annu to , for details on our share-based payment arrangements. , fordetailsonourshare-basedpayment arrangements. In 2020 and 2019, our net debt leverage ratio target In 2020 and2019,ournetdebtleverageratiotarget A tonetinterestexpense ratiorepresentsadjustedEBITDA dividedbynetinterest expense.AdjustedEBITDA isdefinedasoperatingrevenues lessoperatingcostsas 2.50 , asshowninourstatements offinancial position. AdjustedEBITDA isdefinedasoperating revenueslessoperatingcostsasshownin ourincomestatements. a in the consolidated statements of financial position. in theconsolidatedstatementsoffinancial position. l R Trade payables andotherliabilities,Other times adjustedEBITDA andouradjustedEBITDA e po r t Other (expense) income Other (expense) income Other (expense)income A. Wedefinenetdebt as debtduewithinoneyearpluslong-term debt and50%ofpreferredshares Share- in in Trade payables andotherliabilities The followingtableprovidesasummaryofourkeyratios. The fair value of our equity forward contracts at December 31, 2019 The fairvalue ofourequityforwardcontractsatDecember 31, 2019 The fairvalue ofourequityforwardcontractsatDecember 31, 2020 A 25%increase(decrease)inthemarketpriceoffuelatDecember 31, 2020 A 5%increase(decrease)inthemarketpriceofBCE’s commonshares $3.33 per commonshare. $3.50 percommonshare.Inaddition,theboardofdirectorsBCE $3 million relating to these fuel swaps is recognized in Other (expense) Other non-currentassets COMMODITY PRICEEXPOSURES with respect to its First Preferred Shares. See Note 29, with respect to its First Preferred Shares. See Note 29, was an asset of $40 million recognizedin was anassetof$40 million recognizedin was anetliabilityof$82 million would resultinagain(loss)of$3 million recognizedinnetearningsfrom On February 5, 2020,theboardofdirectorsBCEapproved anincrease On February 3, 2021,theboardofdirectorsBCEapproved anincrease position. A (loss) gain of ($51 million) and $138 million fortheyear and $138 million position. A(loss)gainof($51 million) December 31, 2020 wasanassetof$3 million includedin cost of fuel in 2020 and2021.Thefairvalue ofourfuelswapsat cost offuelin 2020 equity forwardcontractsisrecognizedin and2019,respectively,relatingtothese ended December 31, 2020 of 5.0%intheannualdividendonBCE’s commonshares,from$3.17 to on April15, 2021 totheshareholdersofrecordatMarch declared a quarterly dividend of of continuing operations,withallothervariables heldconstant. all othervariables heldconstant. recognized innetearningsfromcontinuingoperationsfor2020,with at December 31, 2020 would result in a gain (loss) of $39 million wouldresultinagain(loss)of$39 million at December 31, 2020 non-current liabilities In 2020, we entered into fuel swaps to economically hedge the purchase In 2020,weenteredintofuelswapstoeconomicallyhedgethepurchase In Q4 2020, BCE started a normal course issuer bid program (NCIB) BCEstartedanormalcourseissuerbidprogram(NCIB) In Q4 2020, assets income for additionaldetails. the consolidatedincomestatements. Adjusted EBITDA tonetinterest expenseratio AT DECEMBER31 Net debtleverageratio 5.1% intheannualdividendonBCE’s commonshares,from in theconsolidatedstatementsoffinancial position. Againof in theconsolidatedincomestatements. in the consolidated statements of financial position. in theconsolidatedstatementsoffinancial position. in the consolidated statements of financial in theconsolidatedstatementsoffinancial $0.875 per common share payable , Other non-currentassets Other (expense) income Other currentassets Other currentassets 8.32 2.93 2020 Share capital, Other current Other current 15, 2021. and to $3.33 to , less cash lesscash 8.50 2.81 2019 Other Other and and in in , The followingtableprovidesasummaryoftheprincipal termsofBCE’s FirstPreferredSharesasatDecember 31, 2020.TherewerenoSecond Note 29 PREFERRED SHARES (2) (1) (3) par value. ThetermssetoutinthearticlesauthorizeBCE’s directorstoissuethesharesinoneormoreseriesandsetnumberof Preferred SharesissuedandoutstandingatDecember 31, 2020.BCE’s articlesofamalgamation, asamended,describethetermsandconditions BCE’s articlesofamalgamation,as amended, provideforanunlimitednumberofFirstPreferredSharesandSecondShares,allwithout of thesesharesindetail. and theconditionsforeachseries. T Z Y AA AB AC AD AF AE AI AH AG AO AN AM AL AK AJ AR AQ AP S SERIES Q R (1) (1) (1) (1) redeem Series AL and AN First Preferred Shares at $25.00 per share on December 31, 2021 and March 31, 2021, respectively, and every five years thereafter (each, a Series 2021,respectively, and everyfive years thereafter (each,a Series and March 31, shareonDecember 31, 2021 redeem Series ALand AN First Preferred Shares at $25.00 per (2) (1) (3) (1) (3) (1) (1) (2) (1) (1) If SeriesAPorARFirstPreferredSharesareissuedonMarch BCE may BCE mayredeemeachoftheseseriesFirstPreferredSharesontheap share onanydatewhichisnotaSeriesconversionfortheapplicable seriesofFirstPreferredShares. 2028,respectively,andeveryfiveyearsthereafter(each,aSeriesconversiondate).Alternatively,BCEmayredeemAPorARFirstPreferredSharesat$25.50 per September 30, First PreferredShares. conversion date).Alternatively,BCEmayredeemSeriesALorANFirstPreferredSharesat $25.50 per shareonanydatewhichisnotaSeriesconversionforthe applicable seriesof (1) (1) floating floating floating floating floating floating floating floating floating floating floating floating DIVIDEND 3.904% 3.019% 3.018% 2.764% 2.954% 3.865% 4.812% ANNUAL 3.61% 4.38% 2.75% 2.80% 4.26%

RATE | re capital Sha CONVERTIBLE Series AM Series AQ Series AO Series AG Series AN Series AH Series AD Series AC Series AA Series AR Series AK Series AB Series AP Series AE Series AF Series AL Series AJ Series AI Series Q Series R Series S Series Y Series Z Series T INTO September 30,2023 September 30,2028 December 31,2021 December 31,2021 September 1,2022 September 1,2022 November 1,2021 November 1,2021 December 1,2022 December 1,2022 December 1,2030 December 1,2025 February 1,2025 February 1,2025 March 31,2021 March 31,2022 March 31,2021 March 31,2027 August 1,2021 August 1,2021 CONVERSION DATE March 1,2023 March 1,2023 May 1,2021 May 1,2021 31, 2022 and September 30, 2023, respectively, BCE may redeem such shares at $25.00 per share on March 31, 2027 and and shareonMarch 31, 2027 2023,respectively,BCEmayredeemsuchsharesat$25.00 per andSeptember 30, 31, 2022 September 30,2023 December 31,2021 September 1,2022 November 1,2021 December 1,2022 December 1,2025 plicable redemptiondateandeveryfiveyearsafterthatdate. February 1,2025 March 31,2021 March 31,2022 August 1,2021 March 1,2023 REDEMPTION DATE May 1,2021 At anytime At anytime At anytime At anytime At anytime At anytime At anytime At anytime At anytime REDEMPTION $25.00 $25.50 $25.00 $25.50 $25.00 $25.00 $25.50 $25.50 $25.50 $25.00 $25.00 $25.50 $25.50 $25.00 $25.00 $25.00 $25.50 $25.00 $25.00 $25.00 PRICE 10,000,000 10,000,000 20,000,000 20,000,000 20,000,000 20,000,000 24,000,000 22,000,000 22,000,000 24,000,000 25,000,000 30,000,000 30,000,000 25,000,000 22,000,000 22,000,000 30,000,000 30,000,000 30,000,000 30,000,000 8,000,000 8,000,000 8,000,000 8,000,000 AUTHORIZED NUMBER OFSHARES 11,397,196 10,027,991 22,735,621 OUTSTANDING 1,918,509 8,079,291 8,599,204 4,486,552 9,963,209 6,512,913 9,012,249 4,984,851 9,481,487 3,511,848 7,998,900 1,952,085 9,542,615 2,254,079 8,050,116 5,949,884 9,200,000 4,600,000 ISSUED AND – – – BCE In DECEMBER 31, c . 2020Annu 4,003 202 291 219 256 112 254 163 225 125 237 200 568 218 201 149 228 118 2020 STATED CAPITAL 48 88 45 56 – – – a DECEMBER 31, l R e po 4,004 202 291 219 256 112 254 232 225 125 168 200 569 218 201 149 228 118 r 2019 48 88 45 56 t

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Notes to consolidated fi nancial statements Notes to consolidated fi nancial statements The followingtableprovidesdetailsabouttheoutstandingcommonsharesofBCE. The followingshare-basedpayment amountsareincludedintheincomestatementsas operating costs. The commonsharesandtheClassBrankequallyinpayment ofdividendsandinthedistributionassetsifBCEisliquidated,dissolved The FirstPreferredSharesofallseriesrankatparity witheachotherand Note 30 All oftheissuedandoutstanding First PreferredShares at Stock Exchange.In2020,BCErepurchasedandcanceled41,400 First COMMON SHARES AND CLASS BSHARES CLASS AND COMMON SHARES (1) CONTRIBUTED SURPLUS PRIORITY ANDENTITLEMENTTODIVIDENDS VOTING RIGHTS PREFERRED SHARES NORMAL COURSEISSUERBIDFORBCEFIRST when the holders are entitled toonevotewhen theholdersareentitled pershare. Contributed surplus in 2020 and 2019 includes premiumsinexcessofpar and 2019 valueContributed surplusin 2020 upon theissuanceofBCEcommonsharesandshare-based On November 4, 2020,BCE’s BoardofDirectorsauthorizedthecompany purchases undertheNCIB. BCE’s articlesofamalgamationprovideforanunlimitednumbervoting commonsharesandnon-voting ClassBshares,allwithoutpar value. December 31, 2020 arenon-voting, exceptunderspecialcircumstances TheNCIBwillextend Preferred Sharesforatotalcostof$1 million. dissolution orwindingupofBCE. or woundup, afterpayments duetotheholdersofpreferredshares.NoClassBshareswereoutstandingatDecember 31, 2020 and2019. outstanding First Preferred Shares that are listed on the Toronto cancellation upto10%ofthepublicfloateachseriesBCE’s compensation expensenetofsettlements. up to November 8, 2021, or an earlier date should BCE complete its 2021,oranearlierdateshouldBCEcompleteits up toNovember 8, and with respect to distribution of assets in the event of liquidation, and withrespecttodistributionofassetsintheeventof liquidation, in prioritytoallothersharesofBCEwithrespectpayment of dividends to commenceanormalcourseissuerbid(NCIB)purchasefor 162 Total share-basedpayments Shares issuedunderDSP Shares issuedunderemployeestockoptionplan Shares issuedunderESP FOR THEYEARENDEDDECEMBER31 Outstanding, January1 Outstanding, December31 Other RSUs/PSUs ESP

Includes DSP |

BCE In (1) c . 2020Annu , DSUsandstockoptions.

| hare-based payments hare-based S a l R e po r t NOTE 30 The dividend rate on these shares is reset every five years, as set out The dividendrateonthesesharesisreseteveryfiveyears,assetout All oftheissuedandoutstanding First PreferredShares at set outinBCE’s articlesofamalgamation,asamended. CONVERSION FEATURES floating dividend rate on these shares is calculated every month, as floating dividendrateonthesesharesiscalculatedeverymonth,as floating cumulative quarterly dividends. The floating dividend rate on floating cumulative quarterly dividends. The floating dividend rate Dividends onallseriesofFirstPreferredSharesarepaid asandwhen December 31, 2020 are convertible at the holder’s option into another to Holders ofSeriesALandANFirstPreferredSharesareentitled Preferred Shares are entitled to fixed cumulative quarterly dividends. tofixedcumulativequarterlydividends. Preferred Sharesareentitled Holders ofSeriesR,T, Z,AA,AC,AF, AG,AI,AK,AM,AOandAQFirst Holders of Series S, Y, AB, AD, AE, AH and AJ First Preferred Shares Holders ofSeriesS,Y,AB,AD,AE,AHandAJFirstPreferredShares declared bytheboardofdirectorsBCE. amalgamation, asamended. as amended. according to theterms set out in BCE’s articles of amalgamation, associated seriesofFirstPreferredSharesonaone-for-onebasis are entitled to floating adjustable cumulative monthly dividends. The tofloatingadjustablecumulativemonthlydividends.The are entitled in BCE’s articlesofamalgamation,asamended. these sharesiscalculatedeveryquarter, assetoutinBCE’s articlesof 903,908,182 904,415,010 NUMBER OF 506,828 SHARES – – 2020 20,363 20,390 CAPITAL STATED 27 – – 898,200,415 903,908,182 4,459,559 1,231,479 NUMBER OF 16,729 SHARES 2020 (51) (31) (91) (9) 2019 20,036 20,363 CAPITAL STATED 251 2019 (54) (29) (10) (93) 75 1 The value ofanRSU/PSUatthegrantdateisequaltovalue ofone The liability relatedtotheDSPisrecorded in The value ofadeferredshareisequaltothevalue ofoneBCEcommon The followingtablesummarizesoutstandingRSUs/PSUsatDecember 31, 2020 and2019. The ESPisdesignedtoencourageemployeesofBCEanditsparticipating The followingtablesummarizesthestatusofunvestedemployercontributionsatDecember 31, 2020 and2019. DESCRIPTION OF THE PLANS THE OF DESCRIPTION $22 million atDecember 31, 2020 and2019,respectively. share. Dividends in the form of additional deferred shares are credited share. Dividendsintheformofadditionaldeferredsharesarecredited subsidiaries toownsharesofBCE.Eachyear, employeescanchoose DSP (2) (1) RSU (1) ESP BCE common share. Dividends in the form of additional RSUs/PSUs are BCE common share. Dividends in the form of additional RSUs/PSUs are RSUs/PSUs aregrantedtoexecutivesandothereligibleemployees. credited totheparticipant’s accountoneachdividendpayment date equivalent invalue tothedividendspaid onBCEcommonshares. employee’s eligibleannualearningstotheplan.Dividendsarecredited regular payroll deductionsforthepurchaseofBCEcommonshares. are equivalent invalue tothedividend paid onBCEcommon shares. and areequivalent invalue tothedividendpaid onBCEcommonshares. In somecases,theemployeralsowillcontributeupto2%of liabilities to have up to 12% of their eligible annual earnings withheld through to haveup12%oftheireligibleannualearningswithheldthrough to theparticipant’s accountoneachdividendpayment dateand to the participant’s account on each dividend payment date and are Vested, December31 Vested Settled NUMBER OFRSU NUMBER OFESPSHARES Granted Contributions Outstanding, December31 Forfeited Dividends credited Outstanding, January1 Forfeited Dividends credited Unvested contributions,January1 Unvested contributions,December31

The RSUs/PSUsvestedonDecember 31, 2020werefullysett The weightedaveragefairv The weightedaveragefairv s /PSU (1) in thestatementsoffinancial position andwas$19 million and s (1) /PSU s s (2) alue oftheRSUs/PSUsgrantedwas$63 in 2020and$58 in2019. alue ofthesharescontributedwas$57 in 2020and$60 in2019. Trade payables andother led inFebruary 2021withBCEcommonsharesand/orDSUs. The trusteeoftheESPbuysBCEcommonsharesforparticipants At December 31, 2020,4,360,087 common shareswereauthorizedfor DSU when executives or other eligible employees elect to or are required to participate intheplan.Thevalue ofaDSU at theissuancedateisequal asdeterminedbytheboardofdirectors. performance objectivesaremet, Employer contributions to the ESP and related dividends are subject to Employer contributionstotheESPandrelateddividendsaresubject Dividends intheformofadditional DSUs arecreditedtotheparticipant’s Eligible bonusesandRSUs/PSUsmaybepaid intheformofDSUs Executives and other eligible employeesare granted a specific number determines the methodthetrusteeusestobuyshares. byprivate purchaseorfromtreasury.BCE on theopenmarket, employees holdingtheirsharesforatwo-yearvestingperiod. compensation ispaid inDSUsuntiltheminimumshareownership continuous employmentfromthedateofgrantand,incertaincases,if of RSUs/PSUsforagivenperformanceperiodbasedontheirposition requirement ismet;thereafter, atleast50%oftheircompensation account oneachdividendpayment dateandareequivalent invalue and level of contribution. RSUs/PSUs vest fully after three years of issuance fromtreasuryundertheESP. is paid inDSUs.Therearenovestingrequirementsrelatingto to thevalue ofoneBCEcommonshare.For non-managementdirectors, the holderleavescompany. when to thedividendspaid onBCEcommonshares.DSUsare settled s 2,973,393 1,065,454 2,915,118 1,124,198 1,146,980 BCE In (935,117) (107,082) (581,119) 165,435 866,127 648,812 (38,170) 62,171 c 2020 2020 . 2020Annu a 2,915,118 2,812,697 1,120,426 1,124,198 l R (932,133) (153,657) (523,359) 904,266 149,648 975,348 623,705 (90,442) e 57,083 po r 2019 2019 t

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Notes to consolidated fi nancial statements Notes to consolidated fi nancial statements • • The followingtablesummarizesBCE’s outstandingstockoptionsatDecember 31, 2020 and2019. The followingtableprovidesadditionalinformationaboutBCE’s stockoptionplansatDecember 31, 2020 and2019. The followingtablesummarizesthestatusofoutstandingDSUsatDecember 31, 2020 and2019. (1) (1) STOCK OPTIONS (1) Under BCE’s long-termincentiveplans,BCEmaygrantoptionsto grant isbasedonthehigherof: executives tobuyBCEcommonshares.Thesubscriptionpriceofa 164 Settled Settlement ofRSUs/PSUs Settlement NUMBER OFDSU RANGE OFEXERCISEPRICES Granted $60 &above $50-$59 $40-$49 Outstanding, December31 Exercised Outstanding, January1 Dividends credited Outstanding, January1 Forfeited orexpired Outstanding, December31 Exercisable, December31 Issued

prior totheeffectivedateofgrant consecutive trading days ending on the trading day immediately consecutive tradingdaysendingonthedayimmediately immediately priortotheeffectivedateofgrant the volume-weighted averageof the tradingprice for thelast five the volume-weighted averageofthetradingpriceonday

Stock optionsoutstandingexpireinFebruary 2021. The weightedaveragemarketsharepriceforoptionsexercisedwas$63 in 2020and$62 in2019. The weightedaveragefairv |

BCE In (1) (1) c . 2020Annu s a l R alue oftheDSUsissuedwas$61 in 2020and$59 in2019. e po r t 15,650,234 11,998,200 3,464,290 187,744 NUMBER WEIGHTED AVERAGE REMAINING LIFE (YEARS) NOTE 2020 29 9 7 5 – (1) 4,193,370 common shares were authorized for issuance under these shares were authorized for issuance under these 4,193,370 common At December 31, 2020, in addition to the stock options outstanding, 2020,inadditiontothestockoptionsoutstanding, At December 31, vest and can be exercised for a period of seven years from the date canbeexercised foraperiodofsevenyearsfromthedate vest and plans. Options vest fully after three years of continuous employment plans. Optionsvestfullyafterthreeyearsofcontinuousemployment grant foroptionsgrantedin 2019 and2020. of grant for options granted prior to 2019 and ten years from the date of from the date of grant. All options become exercisable when they Alloptionsbecomeexercisablewhenthey from thedateofgrant. WEIGHTED AVERAGE EXERCISE PRICE($) 12,825,541 15,650,234 3,420,407 5,186,600 NUMBER OF (506,828) STOCK OPTIONSOUTSTANDING (88,886) OPTIONS 65 48 59 58 2020 WEIGHTED AVERAGE EXERCISE PRICE($) 12,825,541 12,271,003 105,322 449,216 NUMBER 65 58 57 52 61 59 WEIGHTED AVERAGE REMAINING LIFE 14,072,332 12,825,541 (4,459,559) 4,230,672 3,357,303 2,786,043 4,623,099 NUMBER OF (815,864) (144,535) 255,960 90,435 77,042 OPTIONS (YEARS) 2020 5 4 6 1 2019 WEIGHTED AVERAGE WEIGHTED AVERAGE EXERCISE PRICE($) EXERCISE PRICE($) 4,623,099 4,391,997 (236,525) 236,079 146,960 84,588 2019 2019 56 58 56 57 57 61 58 47 54 58 The followingtableprovidesareconciliationofchangesinliabilitiesarisingfromfinancingactivities. The fairvalue of options granted was determined using a variation of a binomial option pricing model that takes into account factorsspecific to Note 31 share price.Therisk-freerateusedisequaltotheyieldavailable onGovernmentofCanadabondsatthedategrant withatermequalto ASSUMPTIONS USEDINSTOCKOPTIONPRICINGMODEL (1) Expected dividendgrowthiscommensuratewithBCE’s dividendgrowthstrategy.Expectedvolatility isbasedonthehistoricalvolatility ofBCE’s the expectedlifeofoptions. the shareincentiveplans,suchasvestingperiod.Thefollowingtableshowsprincipal assumptionsusedinthevaluation. January 1,2020 Total cash flows(usedin)fromfinancingactivities Total non-cashchanges Cash flows(usedin)fromfinancingactivities Expected life(years) Risk-free interestrate Expected volatility Expected dividendgrowth December 31,2020 Non-cash changesarisingfrom Weighted averageexerciseprice Weighted averageshareprice Weighted averagefairvalue peroptiongranted

Included in Cash dividendspaid bysubsidiaries Cash dividendspaid oncommon Discontinued operations Business acquisitions Effect ofchangesinforeignexchange rates Dividends declared by subsidiaries Dividends declaredbysubsidiaries Dividends declaredoncommon Discontinued operations Other financingactivities Other Repayment oflong-termdebt Increase inleaseliabilities excluding equity (Decrease) increaseinnotespayable Issue oflong-termdebt and preferred shares and preferred shares to non-controlling interests to non-controlling interests Other currentassets

| dditional cash flow information dditional A , Other non-currentassets and NOTE Trade payables andotherliabilities 35 3 3 LONG-TERM DEBT DEBT DUEWITHIN ONE YEARAND 26,323 26,296 (1,810) (5,003) 6,006 (845) (106) 159 675 872 137 (31) (7) 7 – – – – HEDGE FOREIGN DERIVATIVE TO in thestatementsoffinancial position. CURRENCY ON DEBT (159) (159) 169 169 66 56 – – – – – – – – – – – – (1) DIVIDENDS PAYABLE (3,160) (3,107) 3,147 3,197 766 729 (53) 53 (3) – – – – – – – – – BCE In LIABILITIES $1.55 OTHER $65 $63 c 2020 (52) (52) . 2020Annu 52 52 12% 4 1% 5% – – – – – – – – – – – – – – a l R e 27,155 27,081 po (3,888) (1,641) (3,107) (5,003) 3,147 3,962 6,006 $2.34 TOTAL (106) 675 186 r $58 $58 2019 (83) (53) t 53 14% (7)

7 4 2% 5% – |

165

Notes to consolidated fi nancial statements Notes to consolidated fi nancial statements The followingtableshowsrevenuesexpectedtoberecognizedinthefuturerelatedperformanceobligationsthatareunsatisfied(orpartially Note 32 (1) year orlessandforthosecontractswherewebillthesamevalue asthatwhichistransferredtothecustomer. When estimatingminimumtransactionpricesallocatedtotheremaining unfulfilled,or partially unfulfilled, performanceobligations,BCE applied unsatisfied) asatDecember 31, 2020. tion of one the practicalexpedienttonotdiscloseinformationaboutremaining performanceobligationsthathaveanoriginalexpecteddurationofone January 1,2019 166 Total Total non-cash changes Total cash flowsusedinfinancingactivities Adoption ofIFRS16 Cash flows(usedin)fromfinancingactivities December 31,2019 December 31,2018 Non-cash changesarisingfrom Wireless Wireline

Included in Cash dividendspaid bysubsidiaries Cash dividendspaid oncommon Discontinued operations Effect ofchangesinforeignexchange rates Dividends declared by subsidiaries Dividends declaredbysubsidiaries Dividends declaredoncommon Other Discontinued operations Other financingactivities Repayment oflong-termdebt Decrease innotespayable Increase inleaseliabilities excluding equity Issue oflong-termdebt Increase insecuritizedtradereceivables |

BCE In and preferred shares and preferred shares to non-controlling interests to non-controlling interests c . 2020Annu Other currentassets

| emaining performance obligations performance emaining R a l R e po and r t Other non-currentassets NOTE inthestatementsoffinancial position. 35 3 3 LONG-TERM DEBT DEBT DUEWITHIN ONE YEARAND 3,056 1,645 1,411 2021 26,296 26,709 24,405 (1,221) (2,221) (1,045) 1,005 2,304 1,954 (261) 808 131 (34) 63 (6) 1 – – – – 1,733 1,098 635 2022 HEDGE FOREIGN DERIVATIVE TO CURRENCY ON DEBT (169) (169) 261 253 (28) (28) 56 (8) – – – – – – – – – – – – 637 593 (1) 2023 44 DIVIDENDS PAYABLE (3,031) (2,966) 372 371 3,008 3,069 2024 729 691 691 1 (65) 64 (3) – – – – – – – – – – 181 180 2025 1 LIABILITIES OTHER (20) (20) 20 20 – – – – – – – – – – – – – – – – THERE- AFTER 531 530 1 27,081 27,231 24,927 (4,300) (2,966) (1,073) (2,221) 6,510 1,005 3,008 2,327 4,183 4,150 2,304 1,954 TOTAL TOTAL 131 (54) (65) 64 72 (6) 1 – The estimatedcostimpact toBellCanadaoftheDecisioncouldbein The Federal Court of Appeal issued a decision on September 10, 2020 in The following table is a summary of our contractual obligations at December 31, 2020 that are due in each of the next five years and thereafter. Note 33 As part ofitsongoingreviewwholesaleInternet rates,onOctober 6, 2016, the Canadian Radio-television and Telecommunications Supreme Courtof COMMITMENTS CONTINGENCIES which itrejectedtheappeal andliftedthestay.TheApplicants Commission (CRTC) significantly reduced, on an interim basis, some reduced,onaninterimbasis,some Commission (CRTC)significantly Our commitmentsforproperty,plantandequipmentintangible final ruling.Asaresultofthestay,impact oftheDecisionwasnot Federal Court of Appeal granted a stayof the Decisionuntilmaking a Bell Canadaandfivemajorcablecarriers(theApplicants) obtained Bell Canada,withretroactiveeffectbacktoMarch 2016 (theDecision). (FTTN) orcablenetworks, asapplicable. OnAugust 15,(FTTN) 2019,theCRTC excess of$100 million, ifnotoverturnedorotherwisemodified. charge foraccess by third-party Internet resellers to fibre-to-the-node of thewholesaleratesthatBellCanadaandothermajorproviders expand andupdate ournetworkstomeetcustomerdemand. recorded inour 2019 financialstatements. access network infrastructure built by facilities-based providers like access networkinfrastructurebuiltbyfacilities-basedproviderslike assets includeprogramandfeaturefilmrightsinvestmentsto leave to appeal the Decision from the Federal Court of Appeal and the for leave to appeal the decision of the Federal Court of Appeal to the further reducedthewholesaleratesthatInternetresellerspay to Total Commitments for property, plant and Commitments forproperty,plantand Purchase obligations Leases committednotyetcommenced equipment andintangibleassets

| ommitments and contingencies and ommitments CanadawasdeniedonFebruary25,2021. C

’ request ’ request 1,522 545 975 2021 2 The Applicants andTelusalsoappealed theDecisiontoFederal The Applicants andTELUSCommunications Inc. (Telus)alsofiledreview As aresultofthestayissuedbyCRTC,impact oftheDecision 2020, the CRTC issued a stay of the Decision pending its final decision 2020, theCRTCissuedastayofDecisionpendingitsfinaldecision spaces andrealestate.Theseleasesarenon-cancellable. we intendtovigorouslydefendourpositions. Our commitments for leases not yet commenced include OOH advertising Our commitments for leases not yet commenced include OOH advertising Council which did not overturn the Decision, noting that a further decision Council whichdidnotoverturntheDecision,notingthatafurtherdecision 2020,theFederalCabinetissuedanOrderin OnAugust 19, Cabinet. particular, becauseofthenatureourconsumer-facingbusiness,we Purchase obligations consist of contractual obligations under service Purchase obligationsconsistofcontractualunderservice continues tonotberecordedinour 2020 financialstatements. obligations. our financial statements. We believe that we have strong defences and our financialstatements.Webelievethatwehavestrongdefencesand claims andlegalproceedings.Subjecttotheforegoing,basedon damages maybeclaimed.Duetotheinherentrisksanduncertaintiesof on thereviewandvary applications. management believes that the ultimate resolution of these claims and management believesthattheultimateresolutionoftheseclaimsand 2021, merits oftheclaimsandlegalproceedingspendingatMarch 4, and product contracts for operating expenditures and other purchase are exposed toclassactionspursuantwhichsubstantialmonetary and legalproceedingsseekingmonetarydamagesotherrelief. In and vary applications oftheDecisionwithCRTC.OnSeptember 28, In theordinarycourseofbusiness,webecomeinvolved invarious claims legal proceedings is unlikely to have a material and negative effect on legal proceedingsisunlikelytohaveamaterialandnegativeeffecton information currently available andmanagement’sinformation currently assessmentofthe the litigationprocess,wecannotpredictfinaloutcomeortiming of from theCRTCregardingreviewandvary applications ispending. 1,316 479 835 2022 2 940 331 608 2023 1 642 225 416 2024 1 394 144 250 2025 BCE In – c . 2020Annu THERE- AFTER 621 269 352 – a l R e po 5,435 1,993 3,436 TOTAL r t

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167

Notes to consolidated fi nancial statements Notes to consolidated fi nancial statements The followingtableincludescompensationofkeymanagementpersonnelandtheboarddirectorsforyearsendedDecember 31, 2020 The followingtableshowsBCE’s significantsubsidiariesatDecember 31, 2020.BCEhasothersubsidiarieswhichhavenotbeenincludedinthe Note 34 All of these significant subsidiaries are incorporated in Canada and provide services to each other in the normal course of operations. The value SUBSIDIARIES COMPENSATION MANAGEMENT KEY OF PERSONNEL BOARD AND DIRECTORS OF FUND TRUST BCE MASTER ASSOCIATES AND ARRANGEMENTS JOINT WITH TRANSACTIONS $133 million (2019 – $200 million), respectively. Glentel Inc. andDomeProductionsPartnership. From timetotime,BCEmayberequiredmakecapitalcontributionsinitsinvestments. Group Presidents and the Presidents who reported directly tothem. Group Presidentsandthewhoreported directly Bimcor Inc. (Bimcor),awholly-ownedsubsidiaryofBellCanada,istheadministratorMasterTrust Fund. Bimcorrecognizedmanagement and2019,BCEprovidedcommunicationservicesreceivedprogrammingcontentotherinthenormalcourse During 2020 of business on an arm’s length basis toand from its joint arrangements and associates.Our joint arrangements andassociates include MLSE, of thesetransactionsiseliminatedonconsolidation. and 2019 includedinourincomestatements.Keymanagementpersonnelthecompany’s ChiefExecutiveOfficer, ChiefOperatingOfficer, In 2020, BCE recognized revenues and incurred expenses with our joint arrangements and associates of $14 million (2019 – $17 million) and and $17 million) (2019 – In 2020,BCErecognizedrevenuesandincurredexpenseswithourjointarrangementsassociatesof$14 million in Note 26, Post-employment benefitplans fees of $13 million from the Master Trust Fund for 2020 and $12 million for 2019. The details of BCE’s post-employment benefit plans are set out table aseachrepresentslessthan10%individuallyand20%inaggregateoftotalconsolidatedrevenues. 168 Share-based compensation FOR THEYEARENDEDDECEMBER31 SUBSIDIARY Post-employment benefitplansandOPEBscost Bell MediaInc. Bell MobilityInc. Bell Canada Key managementpersonnelandboardofdirectorscompensationexpense Wages, salaries,feesandrelatedtaxesbenefits

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BCE In c . 2020Annu

| elated party transactions party elated R a l R e po r t . OWNERSHIP PERCENTAGE 100% 100% 100% 2020 2020 (59) (26) (30) (3) 100% 100% 100% 2019 2019 (56) (29) (24) (3) The followingtablesshowsummarizedfinancialinformationforoursubsidiarywithsignificantnon-controllinginterest(NCI). Note 36 Note 35 Starting inthelatterpart ofthefirstquarter2020,ourbusinesshasbeennegativelyimpacted bytheemergencymeasuresadoptedto SUMMARIZED STATEMENTS FINANCIAL OF POSITION SELECTED INCOME AND CASH FLOWSELECTED INCOME INFORMATION CASH AND (1) (1) (2) pronounced impact onmediaadvertisingrevenues,wirelessproductvolumes andoutboundroamingrevenues.Dependingontheseverity of measuresadoptedinresponse thereto, andnegativelyimpactedin ouroperationsandfinancialresultscouldcontinuetobesignificantly duration of combat thespreadofCOVID-19 future periods.Itis Total equityattributabletoBCEshareholders Total liabilities Total comprehensive incomeattributabletoNCI Total comprehensive income Total assets Cash dividendspaid toNCI FOR THEYEARENDEDDECEMBER31 FOR THEYEARENDEDDECEMBER31 Current liabilities Current assets Operating revenues NCI Net earningsattributabletoNCI Non-current liabilities Net earnings Non-current assets December 31, 2020 and 2019, the ownership interest held by NCI in CTV Specialty Television Inc. (CTV Specialty) was 29.9%. CTV Specialty was incorporated and operated in Canada as CTV Specialty’ CTV Specialty’ At at suchdates. the s net earnings and total comprehensive income include $5 million directly attributabletoNCIfor 2020and2019. s netearningsandtotalcomprehensiveincomeinclude$5 milliondirectly attributabletoNCI. s netassetsatDecember 31, 2020and 2019include$6 millionand$8 million,respectively,directly

COVID-19 | | ignificant partly-owned subsidiary partly-owned ignificant

difficult S COVID-19 pandemic at thistimetoestimatethemagnitudeofsuchfutureimpacts.

and the resulting adverse economic conditions. All of our segments have been adversely affected with a more and theresultingadverseeconomicconditions.Allofoursegments havebeenadverselyaffectedwithamore disruptions, including the number and intensity of resurgences in COVID-19 cases andthe scope and duration BCE In 1,389 1,032 CTV SPECIALTY 304 699 386 200 227 202 159 754 357 c 2020 2020 CTV SPECIALTY . 2020Annu 53 63 64 (1) (2) a (1) l R e po 1,308 r 294 671 343 181 192 193 151 878 994 314 2019 2019 t 65 58 61

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Notes to consolidated fi nancial statements Board of directors / Executives Board ofdirectors • • • • • • The audit committee assists the The auditcommitteeassiststhe COMMITTEES OF THE BOARD THE OF COMMITTEES L.P. Pagnutti (Chair), COMMITTEE AUDIT AS P.R. Weiss M.F. Leroux,T.E. Richards, I. Greenberg, K.Lee, Chief ExecutiveOfficer, Operating Partner, Chair oftheBoard, Corporate Director Gordon M.Nixon BCE Inc. andBellCanada Director since January 2020 since Director May 2009 since Director November 2014 since Director President and Providence EquityPartners LLC BCE Inc. andBellCanada Mirko Bibic Barry K.Allen ONTARIO, CANADA ONTARIO, CANADA FLORIDA, UNITEDSTATES board intheoversightof: 170

statements and related statements andrelated financial reporting. BCE’s compliance with BCE’s risksasitrelatesto external andinternalauditors effectiveness ofinternal controls auditors and appointment oftheexternal applicable legalandregulatory assessing andreporting on the requirements management’s responsibility for information the performance of both the the performanceofboth the independence,qualifications the integrityofBCE’s financial

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O BCE In F MARCH4,2021 c . 2020Annu a l R e po r t • • • • • • • The CGCassiststheboardto: COMMITTEE GOVERNANCE CORPORATE K. Lee,R.C.Simmonds R.E. Brown,D.F. Denison, M.F. Leroux(Chair),B.K.Allen, Corporate Director Chief ExecutiveOfficer, Chair and Corporate Director Corporate Director Maritime Travel Inc. Director since July 2013 since Director November 2014 since Director October 2012 since Director FCPA, FCA May 2009 since Director Ian Greenberg Robert P. Dexter David F. Denison, Robert E.Brown QUÉBEC, CANADA ONTARIO, CANADA QUÉBEC, CANADA NOVA SCOTIA,CANADA

corporate governance policies develop andimplementBCE’s develop and oversee a process develop andoverseeaprocess committee service determine thedirectors’ determine thecomposition of other matters ethics, publicdisclosureof concerning businessconduct, and guidelines and individual directors and disclosure. board, Chairs of committees board, Chairsofcommittees remuneration forboard and review BCE’s ESGstrategy material informationand board approval BCE’s policies review andrecommendfor become membersoftheboard identify individuals qualified to identify individualsqualifiedto the board,committeesof the to assesstheChairofboard, the board anditscommittees

• • T.E. Richards, C.Rovinescu The MRCCassiststheboardin the Sheila A.Murray C.M., O.Q.,FCPA, FCA COMMITTEE COMPENSATION RESOURCES AND MANAGEMENT Louis P. Pagnutti, I. Greenberg, S.A.Murray, R.E. Brown,R.P. Dexter, D.F. Denison Corporate Director Corporate Director Corporate Director Corporate Director FCPA, FCA May 2020 since Director April 2016 since Director August 2015 since Director Director since November 2020 since Director Monique F. Leroux, Katherine Lee ONTARIO, CANADA ONTARIO, CANADA QUÉBEC, CANADA ONTARIO, CANADA oversight of:

policies ensuringadiverse practices (including health practices (includinghealth BCE’s workplace policies and of officers andother evaluation andsuccession ensuring arespectfulworkplace and inclusive workplace). and safety policies, policies management personnel the compensation, nomination, the compensation,nomination, free from harassment and free fromharassmentand (Chair), B.K. Allen, Thomas E.Richards • • • • The RPFC assists the board The RPFCassiststheboard TORONTO, ONTARIO S.A. Murray,L.P. Pagnutti, C. Rovinescu COMMITTEE PENSION FUND RISK AND P.R. Weiss K. Sheriff, R.C.Simmonds, Chair, LenbrookCorporation Corporate Director Corporate Director Corporate Director Corporate Director Calin Rovinescu Director since April 2017 since Director April 2016 since Director May 2020 since Director Director since May 2009 since Director FCPA, FCA May 2011 since Director Robert C.Simmonds Karen Sheriff Paul R.Weiss, ONTARIO, CANADA QUÉBEC, CANADA ONTARIO, CANADA FLORIDA, UNITEDSTATES in the oversight of:

subsidiaries’ pensionfunds. sponsored byBCE for the Committee ofthe Board plans andfunds primary responsibility ofanother procedures and controls BCE is exposed BCE’s exposure tokeyrisks, BCE’s enterprise riskgovernance collective investment of the collective investmentofthe except for risks that remain the except forrisksthatremainthe and investment ofBCE’s pension and manage key risks to which and managekeyriskstowhich management usestoevaluate funds andtheparticipant the unitizedpooled funds the administration,funding framework and the policies,

(Chair), R.P. Dexter, Executives Stephen Howe AS Group President, Bell Mobility and BellMobilityand Group President, Glen LeBlanc Claire Gillies BCE Inc.andBellCanada Executive Vice-PresidentandChiefFinancialOfficer, Bell Canada BellMobility, President, Bell Canada BellResidential&SmallBusiness, President, Bell Canada Executive Vice-PresidentandChiefTechnologyOfficer, Bell Canada Executive Vice-PresidentandChiefInformationOfficer, BCE Inc.andBellCanada President andChiefExecutiveOfficer, Bell Canada Bell Residential&SmallBusiness, Blaik Kirby Rizwan Jamal Michael Cole Mirko Bibic O F MARCH4,2021

Thomas Little John Watson Wade Oosterman Senior Vice-PresidentandChiefBrandOfficer, Vice Chair, QuébecandSeniorVice-President, Content Development and News, Content DevelopmentandNews, Chief Legal&RegulatoryOfficer, Corporate Services, Chief HumanResourcesOfficerandExecutiveVice-President, Group President, Customer Experience, CustomerExperience, Group President, BCE Inc.andBellCanada Bell Canada Bell Canada BCE Inc.andBellCanada Executive Vice-Presidentand Bell Canada BellBusinessMarkets, President, Bell CanadaandBCEInc. BellMediaandViceChair,President, Bell Canada Robert Malcolmson Devorah Lithwick Bernard leDuc Karine Moses

BCE In c

. 2020Annu a l R e po r t

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Board of directors / Executives Investor information Investor information June 15, 2021 TSX andNYSEstockexchanges Third quarter You willfindasummaryofthedifferencesbetween Second quarter September 15, 2021 SHARE FACTSSHARE $0.875 per commonshare BCE RELEASE DATES 2021 QUARTERLY EARNINGS 2021 DIVIDEND SCHEDULE* QUARTERLY DIVIDEND* COMMON SHARESOUTSTANDING LISTINGS SYMBOL ** * website atBCE.ca. Record date Quarterly andannualreports aswellothercorporate Fourth quarter First quarter December 15, 2021 March 15, 2021 December 31, 2020 –904,415,010 documents can be found on our website. Copies can be documents canbefoundonourwebsite.Copies governance rules in the Governance section of our our governancepracticesandtheNYSEcorporate requested fromtheInvestorRelationsgroup. 172

 When adividendp Subject todividendsbeingdeclaredbytheboardofdirectors made onthefollowingbusinessday

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BCE In c . 2020Annu

ayment datefallsonaweekend,thepayment is

a l R e po r April January April February November August October July P t ayment date** 15, 2021 29, 2021 15, 2021 5, 2021 15, 2022 15, 2021 3, 2022 4, 2021 The filing of the Notice of Intention allows BCE to purchase for cancellation up to 10% of The filingoftheNoticeIntentionallowsBCEtopurchaseforcancellation upto10%of Shares representsanappropriate useoffunds. PurchasesundertheNCIBmaybe Shares) that are listed on the TSX. The normal course issuer bid (NCIB) will extend Shares) thatarelistedontheTSX.Thenormalcourseissuerbid(NCIB) willextend Since January 1, 2006 and unless stated otherwise, dividends paid by BCE Inc. to to andunlessstatedotherwise,dividendspaid byBCE Inc. Since January 1, 2006 Shareholders arerequiredtopay taxondividendsreceivedaswellcapital TAX ASPECTS NORMAL COURSEISSUERBID DIVIDENDS TRIGGER A CAPITAL GAIN THE SALEORDISPOSITIONOFYOUR SHARESCOULD U.S. RESIDENTS NON-RESIDENTS OFCANADA without charge,fromBCE’s InvestorRelationsgroup. Canadian residentsareeligibledividendsasperthe On November 5, 2020,BCEreceivedacceptancefromtheTorontoOn November 5, StockExchange please contactthetransferagentorInvestorRelationsgroup. plans of arrangement and the impact on the calculation of your cost, orvisit plans ofarrangementandtheimpact on thecalculationofyourcost, Non-Resident Taxpayer mentionedabove,wearerequiredtosolicittaxpayer Beginning in2012,theCanadaRevenueAgencyintroducednewrulesrequiringresidents Dividends paid or credited to non-residents of Canada are subject to a25% withholding March 24, 2006 andunlessstatedotherwise,dividendspaid toQuébec byBCE Inc. March 24, 2006 Bell AliantRegionalCommunicationsIncomeFund unitsinJuly 2006, youshould (TSX) of its Notice of Intention to Make a Normal Course Issuer Bid (Notice of Intention). (TSX) ofitsNoticeIntentiontoMakeaNormalCourseIssuerBid(Notice ofIntention). conducted through a combination of discretionary transactions and purchases under conducted throughacombination ofdiscretionarytransactionsandpurchasesunder of residencyfromcertainU.S.residents.Ifthesehavenotbeenreceived,wemaybe country and are eligibletohaveCanadiannon-resident tax withheldonthepayment of of any country with which Canada has a tax treaty to certify that they reside in that gains theyrealize,if any, when they sell their shares or aredeemed to have sold them. contact the Investor Relations group to learn more about the tax implications of these contact theInvestorRelationsgrouptolearnmoreabouttaximplicationsofthese are subjecttoa15%withholdingtax. and underapplicable laws. You canobtainacopyof the NoticeofIntentiononrequest, an automaticsecuritiespurchase plan throughthefacilitiesofTSXoralternative and returnedittothetransferagent. required todeducttheIRS’s specifiedbackupwithholdingtax. For moreinformation, residents alsoqualifyaseligibledividends. In additiontotheDeclarationofEligibilityforBenefitsundera Tax a Treaty for IMPORTANT: IfyoureceivedNortelNetworkscommonsharesinMay 2000 and/or identification numbers and Internal Revenue Service (IRS) Form W-9 certifications identification numbersandInternalRevenueService(IRS) Form W-9 certifications its purchases under the NCIB. BCE is making this NCIB because it believes that, from from its purchasesundertheNCIB.BCEismakingthisNCIBbecauseitbelieves that, their value. BCE believes that, in such circumstances, the repurchase of its Preferred insuchcircumstances, therepurchaseofitsPreferred their value. BCEbelievesthat, time totime,itsPreferredSharesmaytradeinpricerangesthatdo notfullyreflect trading systems, ifeligible, and by such other means as may bepermitted by the TSX from November 9, 2020 to November 8, 2021, or an earlier date should BCE complete the publicfloatofeachseriesBCE’s outstandingFirstPreferredShares(Preferred the Declaration of Eligibility for Benefits under a Tax Treaty for a Non-Resident Taxpayer their dividends at the tax treaty rate. Registered shareholders should have completed tax unlessreducedbyatreaty.Undercurrenttreaties,U.S.andU.K.residents Income Tax Act.Since BCE.ca . SHAREHOLDER SERVICES CONTACT INFORMATION

DIVIDEND REINVESTMENT AND STOCK PURCHASE PLAN TRANSFER AGENT AND REGISTRAR A convenient method for eligible shareholders to reinvest their dividends and For information on shareholder services or any other make optional cash contributions to purchase additional common shares without inquiries regarding your account (including stock transfer, brokerage costs. address change, lost certificates and tax forms), contact: AST Trust Company (Canada) DIVIDEND DIRECT DEPOSIT SERVICE 1 Toronto Street, Suite 1200 Avoid postal delays and trips to the bank by subscribing to the dividend direct deposit Toronto, Ontario M5C 2V6 service. e-mail [email protected] tel 416 682-3861 or 1 800 561-0934 DIRECT REGISTRATION (DRS) (toll free in Canada and the U.S.) HOLDING YOUR SHARES ELECTRONICALLY IN LIEU OF fax 514 985-8843 or 1 888 249-6189 SHARE CERTIFICATES (toll free in Canada and the U.S.) Holdings are represented by a statement issued when establishing or subsequently modifying your DRS balance. This option removes the risks of holding share certificates, website www.astfinancial.com including their safekeeping, and, most importantly, eases the replacement process. Note that there is a cost to replace lost or stolen certificates as well as certificates INVESTOR RELATIONS mailed and never received by the shareholder (if claimed two years after mailing). For financial inquiries: Generally, this cost is a percentage of the value of the shares represented. Building A, 8th Floor 1 Carrefour Alexander-Graham-Bell E-DELIVERY SERVICE Verdun, Québec H3E 3B3 Enrol in the e-delivery service to receive the proxy material, the annual report and/or e-mail [email protected] quarterly reports by e-mail. By doing so, you will receive your documents faster and tel 1 800 339-6353 in an environmentally friendly manner while helping your company reduce its costs. fax 514 786-3970 DUPLICATE MAILINGS or visit the Investors section of our website Eliminate duplicate mailings by consolidating your accounts. at BCE.ca

MANAGE YOUR SHAREHOLDER ACCOUNT Enrol in Investor Central at www.astfinancial.com and benefit from a wide variety of self-service tools to help track and manage your shares.

For more details on any of these services, registered shareholders (shares are registered under your name) must contact the transfer agent. Non-registered shareholders must contact their brokers.

Trademarks in this annual report which are owned or used under licence by BCE Inc., Bell Canada or their subsidiaries include, without limitation, BCE, BELL Design, BELL MOBILITY and BELL MEDIA. This annual report also includes trademarks of other parties. The trademarks referred to in this annual report may be listed without the ® and ™ symbols. © BCE Inc., 2021. All rights reserved. BCE.CA