Spire Inc. Inc. Spire 2016 Annual Report 2016 Spire Inc. 2016 Annual Report We are Spire We like to say energy exists to help people. That’s why our symbol consists of two shapes that form a handshake. 2016 highlights Fiscal years ended September 2016 2015 2014 Earnings and dividends ($ millions, except per share amounts) Net income $ 144.2 $ 136.9 $ 84.6 Diluted earnings per share of common stock $ 3.24 $ 3.16 $ 2.35 Net economic earnings* $ 149.1 $ 138.3 $ 100.1 Net economic earnings per share of common stock* $ 3.42 $ 3.19 $ 3.05 Dividends declared per share of common stock $ 1.96 $ 1.84 $ 1.76 Operating revenues ($ millions) Gas utility $ 1,457.2 $ 1,891.8 $ 1,462.6 Gas marketing and other $ 80.1 $ 84.6 $ 164.6 Total operating revenues $ 1,537.3 $ 1,976.4 $ 1,627.2 Utility sales and customers (thousands) Therms sold and transported 2,565.6 2,742.8 2,002.4 Customers 1,678.7 1,567.8 1,553.0 Shareholders Common shareholders of record, end of period 3,428 3,611 3,809 Employees Total employees, end of period 3,296 3,078 3,152 *For further discussion of these non-GAAP financial measures, see pages – of our Form -K. Profile Across the communities and companies in our portfolio, we Since 1857, our teams have worked hard to empower our at Spire dedicate ourselves to enriching the lives of nearly employees and the people we serve. That’s why our stock 1.7 million residential, commercial and industrial customers is the eighth longest continuously listed stock on the through the strength of our energy. Our regulated utilities New York Stock Exchange, a legacy that inspires us to in Alabama, Mississippi and Missouri are committed to going continue to move our communities forward every day. above and beyond to deliver safe and reliable natural gas service and exceed our customers’ expectations at every encounter. Our non-regulated businesses help us assure a reliable supply at an affordable price as well as explore innovations that address the evolving needs of our customers. 2 Spire Inc. 2016 Annual Report Comparison of 5-year cumulative total return Fiscal years ended September 30 2011 2012 2013 2014 2015 2016 Spire Inc. $100 $115.67 $125.96 $134.88 $164.33 $198.06 S&P 500 $100 $130.20 $155.39 $186.05 $184.91 $213.44 S&P Utilities $100 $112.90 $120.80 $141.49 $150.78 $176.97 Net economic earnings EBITDA $ per share by fiscal year $ millions by fiscal year 3.42 3.19 3.05 428 2.79 2.79 2.87 405 246 158 155 148 2011 2012 2013 2014 2015 2016 2011 2012 2013 2014 2015 2016 Declared dividends Enterprise value $ per share by fiscal year $ billions by fiscal year 5.3 2.10 1.96 4.5 1.76 1.84 1.66 1.70 4.1 2.4 1.3 2012 2013 2014 2015 2016 2017 2012 2013 2014 2015 2016 Spire Inc. 2016 Annual Report 3 Edward L. Glotzbach Dear fellow shareholders Chairman of the Board and employees, Spire Inc. In April, we officially became Spire. In changing our As shale gas becomes a plentiful part of the natural name, we bring our businesses together as one company. gas supply mix in the United States, one of our goals is Spire represents our ongoing efforts to bring people for our customers to benefit from the cost advantages and energy together in ways that enrich lives and add it offers. At the same time, we seek to enhance our supply value for our shareholders. diversity, reliability and resiliency. To advance these goals, we launched the Spire STL Pipeline project. When To help make this vision real, we’ve increased our it’s completed in fiscal 2019, our pipeline will connect scale and expanded our geographic footprint. And, as our St. Louis area customers to a new energy source: the a result of our success in acquiring and growing gas Rocky Mountain Express pipeline that brings gas west utilities over the last four years, we’ve quadrupled our from the Marcellus and Utica supply basins. We’re enterprise value, giving us the resources we need to exploring similar opportunities in western Missouri expand in the future. and Alabama. This transformative success is reflected in a number With each of these initiatives, we put our customers, of key metrics, including our 2016 net economic earnings communities and shareholders first. I know I speak for of $3.42 per diluted share, representing growth of all of the Board of Directors when I say it’s deeply 7.2 percent compared to 2015 earnings. This is in line satisfying to be part of a company that believes energy with our expectation that results would come in above exists to help people. our annual long-term earnings per share growth target of 4 to 6 percent. I want to extend my gratitude to our customers for joining us on this journey. I would also like to thank my Our performance, along with our confidence in our fellow Board members for their guidance, as well as continued growth, allowed us to increase our annualized our partners and shareholders for their support. Finally, dividend for 2017 by 7.1 percent to $2.10 per share a special thanks to Suzanne and her leadership team, while maintaining our conservative payout ratio. This along with our 3,300 employees, for their exceptional marks the 14th consecutive year of increasing dividends efforts in making Spire what it is today and what it and the 72nd year of continuous dividend payments. will be tomorrow. We’ve invested in our gas utilities so we can strengthen Sincerely, our relationships with our communities by providing above and beyond service. This year, Spire put a total of $293 million of capital to work, nearly all of which was invested in our gas utilities with a focus on infrastructure upgrades across our system. This is a significant part of how we ensure safe and reliable service for all Edward L. Glotzbach of our customers. Chairman of the Board Spire Inc. We’re also pursuing opportunities to acquire gas utilities. In September 2016, we acquired Mobile Gas in Alabama and Willmut Gas in Mississippi for $344 million. This acquisition moves us into new territory, adding to our footprint and offering further regulatory diversity. We are proud to welcome 103,000 customers to the Spire family, which now totals nearly 1.7 million homes and businesses. 4 Spire Inc. 2016 Annual Report Because when you champion people by delivering energy that inspires, everything is possible. Spire Inc. 2016 Annual Report 5 We are Spire To better reflect the company we That’s why our new symbol are becoming, we chose the name consists of two shapes that form Spire. It stands for how we aspire to a handshake—that’s how we want serve our communities. It stands people to feel when they spend for the growth we want to achieve time with us. Because the idea for our employees, customers and behind a small gesture like a shareholders. It stands for the warm and confident handshake energy we deliver and what that is how we’re changing the utility energy makes possible. We remain mindset for good. committed to providing safe, reliable and clean energy, but we are now redefining what it means to serve. We are a growing energy company with five regulated natural gas utilities in three states, but at our Suzanne Sitherwood heart, we are so much more. We’re President and Chief Executive Officer proud to provide the energy that helps our customers cook delicious meals, take hot showers and heat their homes and businesses. And we’re constantly looking for new ways to enrich their lives. As we prepare to introduce our new identity to our nearly 1.7 million customers in 2017, we are doing the work of integrating and expanding our businesses. By bringing energy and people together, we will build stronger relationships with our customers. 6 Spire Inc. 2016 Annual Report Every dollar we spend on infrastructure, technology and training results in a better experience for our customers. Miles of pipeline replaced Capital expenditures $ millions by fiscal year 290 293 270 233 221 169 171 131 107 109 88 2011 2012 2013 2014 2015 2016 2012 2013 2014 2015 2016 Miles are based on internal records. Totals shown represent miles replaced by utilities regardless of ownership by Spire Inc. Includes utilities owned at least 12 months. Total utility customers 1.679 Millions 1.553 1.568 1.679 1.122 1.553 1.568 1.122 0.628 0.628 2012 2013 2014 2015 2016 Rolling 12-month average gas utility customers for all utilities for2012 Spire’s period 2013of ownership. 2014 2015 2016 Spire Inc. 2016 Annual Report 7 We are service Our customers rely on us for safe Our non-utility businesses also and consistent service, because bring energy and people together. helping to take care of people’s Our gas marketing business families and businesses is at the leverages its market and risk heart of what we do. That’s why we management expertise to provide invested $293 million in capital this wholesale natural gas services year, nearly all of which supported to a diverse and sophisticated our gas utilities for replacement and group of customers. Spire has a enhancements to our distribution total of 15 compressed natural gas system. Specifically, we replaced fueling stations under operation 270 miles of pipelines, more company-wide, including than three times as many miles as two public commercial stations were replaced by these utilities in St.