Management’s Discussion and Analysis 44 Bell Canada Enterprises  2004 Annual Report Selected Annual and Quarterly Information Annual Financial Information The tables below show selected consolidated financial data for each year from 2000 to 2004. We discuss the factors that have caused our results to vary over the past two years throughout this MD&A. Selected Annual and  Quarterly Information This section shows  selected financial and  operational data. EBITDA to interest ratio  is EBITDA divided by  interest expense. Operating margin is operating income divided by operating revenues. Net debt to EBITDA is net debt divided  by EBITDA. Total debt to total assets is total long-term debt (including debt due within one year) divided by  total assets. Long-term debt to equity  is long-term debt (including portion due within one  year) divided by share- holders’ equity. Cash flow per share  is calculated by dividing cash from operating activi- ties less capital expenditures by the average number of common shares outstanding. Cash flow yield  is cash from operating activi- ties less capital expenditures, other investing activities, dividends on preferred shares and dividends paid by sub- sidiaries to non-controlling interest, divided by the  number of common shares outstanding at the end of  the year and multiplied  by the share price at the  end of the year. 2004 2003 2002 2001 2000 Operations Operating revenues 19,193 18,737 18,900 18,473 16,202 Operating expenses (11,629) (11,327) (11,516) (11,603) (9,725) EBITDA 7,564  7,410 7,384 6,870 6,477 Amortization expense (3,108) (3,100) (3,024) (3,313) (2,981) Net benefit plans (cost) credit (256) (175) 33 121 109 Restructuring and other items (1,224) (14) (768) (977) –  Operating income 2,976  4,121 3,625 2,701 3,605 Other income 411  175 2,408 4,063 82 Impairment charge – – (765) – – Interest expense (1,005) (1,105) (1,120) (968) (887) Pre-tax earnings from continuing operations 2,382  3,191 4,148 5,796 2,800 Income taxes (710) (1,119) (1,614) (1,674) (1,284) Non-controlling interest (174) (201) (663) (360) (403) Earnings from continuing operations  1,498  1,871 1,871 3,762 1,113 Discontinued operations 26  (56) 536 (3,326) 3,592  Net earnings before extraordinary gain 1,524  1,815 2,407 436 4,705 Extraordinary gain 69  – – – – Net earnings 1,593  1,815 2,407 436 4,705 Dividends on preferred shares (70) (64) (59) (64) (79) Premium on redemption of preferred shares –  (7) (6) – – Net earnings applicable to common shares 1,523  1,744 2,342 372 4,626 Included in net earnings: Net gains on investments Continuing operations 389 84 1,341 3,184 (3) Discontinued operations 34 (86) 607 (1,943) 4,807  Restructuring and other items (772) (3) (441) (462) – Impairment charge – – (527) – – Goodwill amortization – – – (971) (485) Other – – – (44) –  Net earnings per common share: Continuing operations – basic 1.55 1.96 2.11 4.58 1.54 Continuing operations – diluted 1.55 1.95 2.09 4.52 1.50 Net earnings – basic 1.65 1.90 2.66 0.46 7.20 Net earnings – diluted 1.65 1.89 2.62 0.46 6.81 Ratios EBITDA margin (%) 39.4% 39.5% 39.1% 37.2% 40.0% EBITDA to interest ratio (times) 7.53 6.71 6.59 7.10 7.30 Operating margin (%) 15.5% 22.0% 19.2% 14.6% 22.3% ROE (%) 12.5% 15.1% 17.8% 2.4% 29.0%