BCE (BCE) J.P. Morgan 54th Annual Global Technology, Media and Communications Conference summary

Strategic transformation and growth initiatives

• Executing a 36-month plan focused on shifting from legacy products to next-generation services like AI Fabric, digital media, and fiber investments.

• AI Fabric deployment is ahead of schedule, with 40% progress and strong demand from hyperscalers and enterprise customers.

• Secured up to 800 MW of power for AI data centers, leveraging Canada's unique power market and government relationships.

• Saskatchewan facility is fully contracted at 300 MW with a 20% IRR, and construction is on track with most equipment ordered.

• Business model is scalable, with ongoing efforts to secure additional power and expand capacity beyond 800 MW.

Financial outlook and capital allocation

• Confident in 2026 guidance: 1%-5% revenue growth, 0%-4% EBITDA growth, and increased CapEx for Saskatchewan build.

• AI Fabric is accelerating faster than expected, potentially impacting revenue and EBITDA positively in 2027-2028.

• Committed to deleveraging to 3.5x by 2027 while funding growth in fiber, digital, and AI infrastructure.

• Asset sales totaling CAD 7 billion are nearly complete, with further non-core divestitures possible to support balance sheet goals.

Business segment performance and opportunities

• Bell Cyber and Ateko businesses grew over 30%, with strong demand for cybersecurity and managed services.

• Ancillary revenue opportunities from AI Fabric include fiber connectivity, cybersecurity, and managed cloud services.

• Margin profile for business markets expected to remain stable as higher-margin AI and cyber solutions grow.