BCE Inc.

Overview Key strengths Key risks Largest Canadian telecom operator, with steady revenue growth expectations Adjusted debt-to-EBITDA ratio will remain elevated at 3.2x-3.3x through next 12-18 months Accelerated fiber expansion to cover about 8 million households by 2022 and 10 million in 2025 Weaker discretionary cash flow (DCF) in 2022 and 2023, reflecting accelerated capital expenditure (capex) investments, C-band spectrum spending, and growing dividends Fiber-to-the-home (FTTH) expansion supports integrated strategy and improved operating efficiency while expanding market share A more aggressive financial policy, with management indicating no expectations of material deleveraging in the near term Significant wireless spectrum portfolio, with about 50 MHz of key 3.5 GHz spectrum holdings nationwide BCE Inc.'s wireless division reported robust postpaid subscriber gains of 301,700

...Company growth supported by wireless expansion and residential internet adds, new spectrum adds and steady FTTP expansion. BCE Inc.'s wireless division reported robust postpaid subscriber gains of 301,700 for 2021 almost double compared with 153,000 in 2020. Low postpaid churn (0.93%), pent-up demand, immigration, and increased retail traffic will continue to support activations. For 2022, a focus on higher-value plans and equipment installation plan (EIP) activations, and recovering roaming revenues should...

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