This section of our annual report contains the audited consolidated financial state- ments of BCE and detailed notes with explanations and additional information. The financial statements contain our results and finan- cial history for the past three years. The notes are an impor- tant part of understanding our financial results. They explain how we arrived at the numbers in the financial statements, describe signifi- cant events or changes that affect the numbers, and explain certain items in the financial statements. They also include details about our results that do not appear in the financial statements. BCE consists of many  businesses, including sub- sidiaries and joint ventures.  We present the financial information for all of  our holdings as one consolidated company. Except in the auditors’ report,  we ,  us ,  our and  BCE mean BCE Inc., its sub- sidiaries and joint ventures. To the Shareholders of BCE Inc.: We have audited the consolidated balance sheets of BCE Inc. as at December 31, 2004 and 2003, and the consol- idated statements of operations, deficit and cash flows for each of the years in the three-year period ended December 31, 2004. These consolidated financial state- ments are the responsibility of BCE Inc.’s management. Our responsibility is to express an opinion on these  consolidated financial statements based on our audits. We conducted our audits in accordance with Canadian generally accepted auditing standards. Those standards require that we plan and perform an audit  to obtain reasonable assurance whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence support- ing the amounts and disclosures in the consolidated Montréal, Canada March 2, 2005 82 Bell Canada Enterprises  2004 Annual Report In our opinion, these consolidated financial state- ments present fairly, in all material respects, the finan- cial position of BCE Inc. as at December 31, 2004 and 2003 and the results of its operations and its cash flows for each of the years in the three-year period ended December 31, 2004, in accordance with Canadian  generally accepted accounting principles. financial statements. An audit also includes assessing the accounting principles used and significant esti- mates made by management, as well as evaluating the overall financial statement presentation. Auditors’ Report Management has a system of internal controls designed to provide reasonable assurance that the financial statements are accurate and complete in all material respects. This is supported by an internal audit group that reports to the audit committee, and includes communication with employees about poli- cies for ethical business conduct. Management believes that the internal controls provide reasonable assurance March 2, 2005 Management has prepared the financial statements according to Canadian generally accepted account- ing principles. Under these principles, management has made certain estimates and assumptions that  are reflected in the financial statements and notes. Management believes that these financial statements fairly present BCE’s consolidated financial position, results of operations and cash flows.  The board of directors has appointed an audit com- mittee, which is made up of unrelated and independ- ent directors. The audit committee’s responsibilities include reviewing the financial statements and other information in this annual report, and recommending them to the board of directors for approval. You will find a description of the audit committee’s other responsibilities on page 122 of this annual report. The internal auditors and the shareholders’ auditors have free and independent access to the audit committee. that our financial records are reliable and form a proper basis for preparing the financial statements, and that our assets are properly accounted for and safeguarded. These financial statements form the basis for all  of the financial information that appears in this  annual report. The financial statements and all of the information in this annual report are the responsibility of the  management of BCE Inc. and have been reviewed and approved by the board of directors. The board of directors is responsible for ensuring that management fulfills its financial reporting responsibilities. Deloitte & Touche LLP, the shareholders’ auditors, have audited the financial statements. Management’s Report Consolidated Financial Statements Michael J. Sabia  President and Chief Executive Officer  Siim A. Vanaselja  Chief Financial Officer  Karyn A. Brooks Vice-President and Controller Deloitte & Touche LLP Chartered Accountants