2. Building an environment where inclusiveness is a priority. To measure our progress, we developed an “Inclusive Index” as part of our annual employee survey. In 2016, we provided Inclusive Leadership training to more than 70 senior leaders, and it was offered to all managers and above. Delivery continues into 2017 with a goal to have all managers experience this vital learning. 3. Accelerating the development of our diverse workforce. Through expanded mentoring and targeted development programs for traditionally underrepresented groups, we’re building unique talent development opportunities. 4. Enhancing efforts to diversify our candidate pools through targeted recruitment, strategic college relationships, diverse recruiting events and community partnerships. Workforce Stats GENERATIONS 7,987 TOTAL 53 TRADITIONALISTS 1925-1948 (1%) | 2,676 BABY BOOMERS 1949-1964 (34%) 2,146 GENERATION X 1965-1976 (27%) | 3,112 MILLENNIALS/GEN Y 1977-PRESENT (39%) AS OF DECEMBER 31, 2016 16 A BALANCED, SUSTAINABLE BUSINESS STRATEGY NISOURCE STAKEHOLDERS: In my 2015 letter, I noted the Board of Directors’ confidence that NiSource was well positioned to unlock the full potential of its investment opportunity and deliver additional value for our customers and shareholders. With 2016—our first fiscal year operating exclusively as a regulated utility company—behind us, it’s clear that our confidence was well placed and the stage is set to further enhance the company’s plans. As Joe notes in his letter, the NiSource team executed on a record level of utility modernization investments and a significant regulatory agenda. These initiatives are improving the safety, reliability and environmental performance of our systems, while delivering on our customers’ evolving expectations. In the past year, NiSource welcomed to the Board two new members—Wayne DeVeydt and Peter Altabef. Wayne, a former Chief Financial Officer with Anthem Inc., brings a strong Letter from the Chairman 17