SECTION TITLE FINANCIAL HIGHLIGHTS In 2001, TransCanada delivered on its commitment to provide solid, stable returns to shareholders, underpinned by profitable investments in our core businesses. Through the disciplined execution of our strategy to divest non-core assets, pay down debt and continually reduce operating costs, we further strengthened our balance sheet and increased discretionary cash flow.  As a result of our efforts, total shareholder return in 2001 was 21 per cent. In January 2002, the Board of Directors increased the quarterly dividend by 11 per cent, reflect- ing continued, sustainable growth in cash flow and earnings from continuing operations and significant improvements in their quality and predictability. OPERATING RESULTS December 31 (millions of dollars) 2001 2000 1999 Income Statement Net income applicable to common shares from continuing operations 670 650 454 Net income/(loss) applicable to common shares 603 711 (80) EBITDA* from continuing operations 3,005 2,901 2,555 Cash Flow Funds generated from continuing operations 1,514 1,283 1,041 Capital expenditures in continuing operations 440 518 1,323 Balance Sheet Long-term debt 9,347 9,928 11,591 Common shareholders’ equity 5,429 5,230 4,935 *Earnings before interest expense, income taxes, depreciation and amortization. Year ended December 31 COMMON SHARE STATISTICS 2001 2000 1999 Net income per share from continuing operations $ 1.41 $ 1.37 $ 0.94 Net (loss)/income per share from discontinued operations $ (0.14) $ 0.13 $ (1.13) Net income/(loss) per share – Basic and Diluted $ 1.27 $ 1.50 $ (0.19) Funds generated per share from continuing operations $ 3.18 $ 2.70 $ 2.22 Common shares outstanding (millions) Average for the period 475.8 474.6 469.5 End of period 476.6 474.9 474.5 1999 2000 2001 515 592 670 Net Earnings  from Continuing Operations before  Unusual Items (millions of dollars) 1999 2000 2001 1.07 1.25 1.41 Net Earnings Per Share from Continuing  Operations before  Unusual Items (dollars) 2001 ANNUAL REPORT  1