Slide 1: Business Update
Business Update August 10, 2023
Slide 2: Safe harbor statement
Safe harbor statement The information contained herein is as of the date of this document. DTE Energy expressly disclaims any current intention to update any forward-looking statements contained in this document as a result of new information or future events or developments. Words such as “anticipa
Slide 3: Business Update, Financial Update, ESG, Appendix
Business Update Financial Update Environmental, Social & Governance (ESG) Appendix 3
Slide 4: Highly engaged team committed to delivering best-in-class results for our customers, communities and investors
Highly engaged team committed to delivering best-in-class results for our customers, communities and investors Continuing best-in-class engagement, health and safety of our employees • Received Gallup Exceptional Workplace Award for 11th consecutive year, Operating EPS guidance midpoint achieving to
Slide 5: Executing on significant customer-focused capital investment plan while maintaining affordability
Executing on significant customer-focused capital investment plan while maintaining affordability Investing in customer-focused initiatives… …while maintaining affordability Transitioning to cleaner generation ✓ Distinctive continuous improvement culture drives cost management Shifting generation fr
Slide 6: Increased customer-focused utility investment in 5-year plan supports 6% - 8% operating EPS growth through 2027
Increased customer-focused utility investment in 5-year plan supports 6% - 8% operating EPS1 growth through 2027 (billions) 5-year utility capital investment 95% of 5-year investment supports growth plan in utilities 2023 - 2027 $21.6 $18.1 $3.6 DTE Gas DTE Electric $3.1 $18 $18 DTE Electric $15 ~$2
Slide 7: DTE Electric: transformational investments in generation and distribution
DTE Electric: transformational investments in generation and distribution Significant progress in 2023 • IRP settlement agreement supports transition to cleaner energy future while focusing on reliability and affordability DTE Electric investment (billions) • Placed in service 225 MW wind park, Mich
Slide 8: IRP settlement agreement supports transition to cleaner energy future while focusing on reliability and affordability
IRP settlement agreement supports transition to cleaner energy future while focusing on reliability and affordability Accelerating path to cleaner generation… …while continuing to focus on customer affordability and economic development • Transforming generation by targeting carbon emission reductio
Slide 9: DTE Gas: replacing aging infrastructure to ensure reliability and transition to net zero emissions
DTE Gas: replacing aging infrastructure to ensure reliability and transition to net zero emissions Significant progress in 2023 DTE Gas investment • Completed over 150 miles of main renewal in 1H (billions) • Continued growth of Natural Gas Balance program with over 12,000 $3.6 customers subscribed
Slide 10: DTE Vantage: strategic focus on decarbonization solutions for customers
DTE Vantage: strategic focus on decarbonization solutions for customers Strong project development in 2023 DTE Vantage operating earnings2 • Placed one RNG project and one custom energy solutions project (millions) in service $175 - $185 • Placing two RNG projects in service in 2H Capitalizing on a
Slide 11: Business Update, Financial Update, ESG, Appendix
Business Update Financial Update Environmental, Social & Governance (ESG) Appendix 11
Slide 12: Plans are in place to achieve 2023 operating EPS guidance midpoint
Plans are in place to achieve 2023 operating EPS 1 guidance midpoint, which provides 7% growth over 2022 original guidance midpoint (millions, except EPS) 2023 guidance Headwinds from lower-than-expected rate case sales, higher DTE Electric $1,010 - $1,030 storm expenses and cooler weather partially
Slide 13: Maintaining strong cash flow, balance sheet and credit profile
Maintaining strong cash flow, balance sheet and credit profile Continued balance sheet strength… …while providing a healthy dividend • Targeting equity issuances of $0 - $100 million annually • Increased 2023 annualized dividend 7.6% to $3.81 per share through 2025 • Over 100 consecutive years of pa
Slide 14: 2023 cash flow and capital expenditures guidance
2023 cash flow and capital expenditures guidance Cash flow Capital expenditures (billions) (millions) 2023 2023 guidance guidance Cash from operations1 $3.2 DTE Electric Capital expenditures (4.2) Base infrastructure $1,200 Free cash flow ($1.0) Cleaner generation 500 Dividends (0.8) Distribution in
Slide 15: Business Update, Financial Update, ESG, Appendix
Business Update Financial Update Environmental, Social & Governance (ESG) Appendix 15
Slide 16: Environmental, social and governance efforts are key priorities; aspiring to be the best in the industry
Environmental, social and governance efforts are key priorities; aspiring to be the best in the industry Award-winning commitment to ESG priorities Environment • Transitioning towards net zero emissions at both utilities • Accelerating transition to cleaner generation • Protecting our natural resour
Slide 17: MIGreenPower program continues significant growth
MIGreenPower program continues significant growth 1,400 • Allows customers to purchase up to 100% of electricity business customers needs generated from renewable sources • One of the largest voluntary renewable programs in the nation • Two largest renewable energy purchases from a utility announced
Slide 18: Natural Gas Balance program reducing GHG emissions
Natural Gas Balance program reducing GHG emissions 2021 program inception • Offering an affordable way to balance 25% to 100% of customers’ GHG emissions from an average home’s natural gas use • RNG will be sourced by transforming landfill emissions and wastewater treatment plant by-products into us
Slide 19: Progressing on EV initiatives
Progressing on EV initiatives Charging Forward Program 2019 • Promoting EV education, infrastructure and adoption program inception • Providing residential and commercial rebates, infrastructure support and fleet advisory services • Offering unique solutions such as home charger installation financi
Slide 20: Committed to Diversity, Equity and Inclusion (DEI); creating a safe and welcoming environment
Committed to Diversity, Equity and Inclusion (DEI); creating a safe and welcoming environment Employee groups create an inclusive environment where differences Health and safety of our people is a priority are celebrated and a sense of belonging exists for all employees • Multiple safety committees
Slide 21: Building on the momentum of the last decade, committed to Michigan investments and supplier diversity
Building on the momentum of the last decade, committed to Michigan investments and supplier diversity 2022 Michigan spend (millions) $2.5b invested in Michigan businesses in 2022 65,000 jobs created since 2010 $20 $900m invested with Detroit suppliers in 2022 $19 invested with suppliers owned by wom
Slide 22: Governance framework provides shareholder rights and enables sustainable value creation
Governance framework provides shareholder rights and enables sustainable value creation Best-in-class governance practices 1 7 • Lead Independent Director 91% 36% • All board committees are composed exclusively of independent gender or Directors independent ethnically diverse • Stock ownership guide
Slide 23: Executive management compensation plan is aligned with our stakeholder priorities
Executive management compensation plan is aligned with our stakeholder priorities Annual or long-term incentive metrics • Employee engagement Our team • Employee safety • Customer satisfaction Our customers • Customer complaints • System reliability • Customer satisfaction Our communities • Customer
Slide 24: Business Update, Financial Update, ESG, Appendix
Business Update Financial Update Environmental, Social & Governance (ESG) Appendix 24
Slide 25: IRP outlines accelerated path to cleaner energy
IRP outlines accelerated path to cleaner energy First 5 years (2023 - 2027) Generation mix1 (MWh %) • Ceasing coal use at one Belle River unit in 2025 and remaining unit in 2026; converting to 1,300 MW natural gas peaking resource 1% 3% 2% 14% • Adding 1,200 MW of solar 22% 17% 3% 32% • Adding 350 M
Slide 26: Operating in a constructive regulatory environment
Operating in a constructive regulatory environment Michigan Public Service Commission (MPSC) MPSC key objectives align with DTE’s Dan Scripps • Empower customers to make informed Chair utility choices • Assure safe, secure and reliable utility services and infrastructure Katherine Peretick • Assure
Slide 27: Reconciliation of reported to operating earnings (non-GAAP)
Reconciliation of reported to operating earnings (non-GAAP) Use of Operating Earnings Information – Operating earnings exclude non-recurring items, certain mark-to-market adjustments and discontinued operations. DTE Energy management believes that operating earnings provide a meaningful representati