TSE:FTS FOR TIS INC. CONSOLIDATED STA TEMENTS OF CASH FLOWS For the Year Ended December 31 See accompanying notes to consolidated financial statements. FORTIS Inc. 2OO1 Annual Report 44 2001 (in thousands) 2000 Cash from Operations Earnings before non-controlling interest and discontinued operations $ 56,508 $ 39,375 Items not Affecting Cash Amortization 62,495 52,513 Future income taxes 12,207 (1,582) Accrued employee future benefits (8,543) (9,041) Other (1,922) (1,387) 120,745 79,878 Change in non-cash working capital (Note 18) (25,737) 20,394 Cash from Continuing Operations 95,008 100,272 Cash used in Discontinued Operations (893) (2,773) 94,115 97,499 Cash used in Investing Capital additions (149,455) (157,652) Proceeds on sale of capital assets 10,940 1,542 Business acquisitions, net of cash (Note 17) (102,087) (4,705) Long-term investments (901) (81,515) Net proceeds on sale of certain trademark rights - 1,209 Proceeds on sale of investment 5,500 - Change in corporate tax deposit 6,687 1,959 Change in deferred charges and credits (10,410) (1,536) (239,726) (240,698) Cash from External Financing Issue of common shares 7,146 55,350 Proceeds from long-term debt 105,052 199,289 Repayment of long-term debt (32,489) (23,368) Change in short-term borrowings 89,287 (58,157) Contributions in aid of construction 2,362 4,706 Dividends Common shares (28,016) (25,737) Subsidiaries to non-controlling shareholders (1,897) (1,924) 141,445 150,159 Effect of exchange rate changes on cash 19 181 Change in Cash (4,147) 7,141 Cash, Beginning of Year 18,432 11,291 Cash, End of Year $ 14,285 $ 18,432