2018 Guide to Effective Proxies

6 TH EDITION | GUIDE TO EFFECTIVE PROXIES 100 XCEL ENERGY Financial Results Retaining the trustand confidence ofour shareholders, customersand policymakers remainsa toppriority. Our 2017 results demonstrate our continuedability todeliver on that commitment. EEI Investor-OwnedElectrics (1) 21-MemberPeerGroup XcelEnergy 115.3% 78.8% 48.3% 21.9% 83.7% 26.1% 21.9% 8.8% 11.7% OneYear ThreeYear FiveYear 2016-2017 2005-2017 (CAGR) Ongoing EPSGrowth (2) 4.1% 5.9% Met or exceededongoingEPS guidance for13 consecutive years Dividend Growth 5.9% 4.4% Increased dividend for14 consecutive years StockPrice 18.2% 8.3% CAGR reflectsYE 2005 toYE2017 (1)EEI index ismarket capitalization-weightedandwas comprised of43 companies as ofDecember 31, 2017. (2)OngoingEPS is a non-GAAPnumber and is defined inExhibitA,which reconciles this amount toGAAPEPS for each period. TotalShareholderReturn TrackRecordofSuccess 2018 XcelEnergyProxyStatement 3 Proxy Summary Honoredon the Forbes Global 2000 list ofTopRegardedCompanies Total of 07 pages in section Are Independent Years AverageTenure AreFemale and/or Minority HaveC-suite Experience Have Environmental Experience 92 % 9 33 % 92 % 67 % Corporate Governance Ourproven track recordofdelivering strong financial andoperational results is rooted in a foundation of excellent corporate governanceand a cultureof compliance. OurBoard is composedof the right skillmixand hasa healthy succession cadence. ShareholderValue StrongOperational andFinancialResults SoundCorporateGovernance GovernanceHighlights StrongGovernance Practices Independent Oversight Shareholder Rights •Regularexecutive sessions •Tenure and overboarding policies •AnnualBoardand committee evaluations •Annual strategyand risk review • 11 independentdirectors • Lead IndependentDirector elected annually •Committees composed entirely of independentdirectors •Directorselectedby majority vote •Annual advisory vote on executive compensation •No supermajority approval provisions •Proxy access right •Goodmixofdiversedirectors with varied experience and tenure •Board governance process for cybersecurity •DirectBoard interactionwith employeegroups •Newdirectorelected •Committee assignments refreshed •Commitment to robust succession planning •Direct governanceoutreach to shareholders representing more than 40%ofoutstanding shares •Direct investor relations outreach to active institutional investors representingnearly 70%of shares Proxy Summary 2018 XcelEnergyProxyStatement 2 Recognized for two consecutive years as oneof CorporateResponsibilityMagazine’s 100BestCorporate Citizens for performance related to theenvironment, employee relations, corporategovernance, financial results and community support Proxy Summary VotingMatters andBoardRecommendations: BoardVote Recommendation PageReference (formore detail) ProposalNo. 1 ElectionofDirectors FOR each nominee Candidatesprovide the needed experience and expertise to govern theCompany andensure strong independentoversight. ProposalNo.2 AdvisoryVote onExecutiveCompensation FOR XcelEnergy’s executive compensation plan is marketbased,performance driven, and aligned with shareholder interests. ProposalNo.3 Ratificationof theAppointment ofDeloitte&Touche LLPas the IndependentRegisteredPublic AccountingFirm for 2018 FOR All independence standards have beenmet and soundpracticesareemployed to ensure strong, independent financialgovernance. How toVote If you held sharesofXcelEnergy common stockas of the record date (March 20,2018), youare entitled to vote at the annualmeeting. By Internet— Go to thewebsite atwww.proxypush.com/xel, 24 hours a day, sevendaysaweek. Youwill need the control number that appears on yourproxy card oron yourNotice of Internet Availability ofProxyMaterials. ByTelephone— Call1-866-883-3382, 24 hours aday, seven days aweek.Youwillneed the control number that appearson your proxy card. ByMail— If you receiveda fullpaper set ofmaterials, dateand sign your proxy card exactly as yournameappears on your proxy card andmail it in the enclosed, postage-paid envelope. If you receivedaNoticeof InternetAvailabilityofProxyMaterials, youmay request a proxy cardby following the instructions in yourNotice.You do not need tomail theproxy card if you are voting by internet or telephone. InPerson— At the annualmeeting. Proxy Summary 2018 XcelEnergyProxyStatement 1 Page 18 Page 27 Page 57 ZOETIS, INC. PROXY SUMMARY Thissummaryhighlightscertaininformationinthisproxystatement.Asitisonlyasummary,pleasereviewthecomplete ZoetisInc.ProxyStatementand2017AnnualReportbeforeyouvote. 2018 ANNUAL MEETING TimeandDate Tuesday,May15,2018,at10:00a.m.EDT Place HiltonShortHills 41JohnF.KennedyParkway ShortHills,NewJersey07078 RecordDate CloseofbusinessonMarch21,2018 Voting Shareholdersontherecorddateareentitledtoonevotepershareoneachmattertobevoteduponatthe AnnualMeeting. Admission Wedonotrequireticketsforadmissiontothemeeting,butwedolimitattendancetoshareholdersontherecord dateortheirproxyholders.Pleasebringproofofyourcommonshareownership,suchasacurrentbrokerage statement,andphotoidentification. 2017 BUSINESS HIGHLIGHTS In2017,ourleadershipteamonceagaindrovestrong operatingperformancebasedonthethree interconnectedcapabilitiesthathavebeencriticalto oursuccesssincebecomingapubliccompany:direct customerrelationships,innovativeresearchand development,andhigh-qualitymanufacturingand supply.Wecontinuedtodeliveronourvalue propositionofgrowingrevenuefasterthanthe marketandgrowingouradjustednetincomefaster thanrevenue;targetingkeyinvestmentopportunities forgrowth;andreturningexcesscapitaltoour shareholders. $5.307 REVENUE BILLION $864 NET INCOME MILLION 22% ADJUSTEDNET INCOME 2 ADJUSTED DILUTEDEPS 2 $2.40 PERDILUTED SHARE $1.75 DILUTEDEPS PERDILUTED SHARE 8% OPERATIONAL REVENUE 1 $1.185 ADJUSTEDNET INCOME 2 BILLION 1 Operationalrevenuegrowth(anon-GAAPfinancialmeasure)isdefinedasrevenuegrowthexcludingtheimpactofforeignexchange.Page43of our2017AnnualReportonForm10-K,filedwiththeSEConFebruary15,2018,containsareconciliationofthisnon-GAAPfinancialmeasureto reportedresultsunderGAAPfor2017. 2 AdjustednetincomeandadjusteddilutedEPS(non-GAAPfinancialmeasures)aredefinedasreportednetincomeattributabletoZoetisand reporteddilutedEPS,excludingpurchaseaccountingadjustments,acquisition-relatedcostsandcertainsignificantitemssuchascostsassociated withimplementingorganizationalchangesresultingfromourBusinessReviewandcostsassociatedwithbecominganindependentpublic company.Pages45to50ofour2017AnnualReportonForm10-K,filedwiththeSEConFebruary15,2018,containareconciliationofthese non-GAAPfinancialmeasurestoreportedresultsunderGAAPfor2017. ZOETIS2018PROXYSTATEMENT 1