NISOURCE STAKEHOLDERS: As I reflect on 2017, I could not be more pleased with how NiSource performed on all dimensions of our commitments, and I am especially proud of the company’s relentless focus on driving meaningful progress across all measures of sustainability as they affect our stakeholders, society, the environment and the organization. Disciplined execution delivered strong results with respect to the safety, reliability and environmental performance of our systems, the service delivered to our customers and communities, and ultimately our financial performance. On the safety front, NiSource finished its best year ever, with core employee safety metrics improving from industry top quartile to industry top decile. On the customer side, NiSource’s utilities improved their customer satisfaction scores during 2017, with several receiving recognition for their progress made. This performance, delivered through the execution of our long-term infrastructure investment strategy, translated into value for customers, employees and communities, and ultimately a return for shareholders that outperformed both of the major utility indices. In 2017, NiSource also established forward-looking environmental goals for both its electric and natural gas businesses, and it supported increased and consistent disclosure of environmental, social and governance performance across the industry. Letter from the Chairman 20