biggest driver of our solid performance continues to be our long-term infrastructure modernization investments, supported by constructive regulatory frameworks and established recovery mechanisms. This strategy translates into value. Our total shareholder return for 2017 was approximately 19 percent, which outperformed the S&P Utilities and Dow Jones Utility indices. Part of our value for shareholders is a solid and increasing dividend. In 2017, we increased our annualized dividend by more than 6 percent, and in January of 2018, increased the dividend by another 11.4 percent. NISOURCE & FEDERAL TAX REFORM At this time a year ago, it was known that comprehensive reform of the federal tax code was a high priority for policymakers in Washington, D.C. But the specifics of tax reform legislation, as well as its potential impact on regulated utilities and their customers, were far from clear. Today we know that the landmark legislation, signed into law in December 2017, supports the continued investment in critical utility infrastructure that provides long-term benefits for our customers and communities. Specifically, the law recognized the unique needs of regulated utilities by maintaining the federal income tax deduction of interest expense for regulated utilities, the federal income tax deduction for state and local taxes, the normalization of costs for long-term investments and dividend tax rates on par with capital gains tax rates. 3 1,300 ELECTRIC POLES REPLACED IN 2017 ~70 MILES UNDERGROUND CABLE REPLACED IN 2017 * See Regulation G statement on inside back cover. $30B IDENTIFIED LONG-TERM INVESTMENTS $1.21 2017 NET OPERATING EPS* $0.39 2017 GAAP EPS 19.3% TOTAL SHAREHOLDER RETURN $1.26-$1.32 2018 NET OPERATING EPS* 2018 CAPEX PROJECTED PROJECTED 5-7% THROUGH 2020 ANNUAL EPS* DIVIDEND GROWTH PROJECTED $1.7B-$1.8B $0.78 PER SHARE ANNUAL DIVIDEND FOR 2018 $0.70 PER SHARE ANNUAL DIVIDEND FOR 2017