Cms Energy Corporation · NYSE:CMS
Cms Energy — Investor Presentation (July 2013)
20 slides from Cms Energy's investor presentation, Jul 8, 2013
Slide 1: CMS Energy Combined Investor Meetings, July 2013
Exhibit 99.1 CMSCombined Investor July Cross Gas Consumers 8,ENERGY Winds® 2013 Meetings Smart Energy Cycle Energy Plant Park Program
Slide 2: Forward-Looking Statements and Information
This of STATEMENTS factors update The comparable CMS company’s potential 1 guidance. 1933, presentation presentation ENERGY Energy’s Energy any that as to present of amended, could impact, GAAP provides the and AND also information is cause operating Consumers measure favorably made and includes INF
Slide 3: CMS Energy Consistent Results
CMS Consistent RESULTS Self-Imposed Investment .•Catalysts 2 .Visible Ten Base O&M “Needed Constructive Michigan Strong Credit Growth . . working Year Energy ENERGY Rates Down Rating Customer Capital Self-funded Not -Predictable Economy $15 <MODEL well. Limits 1% Regulation Wanted” 2% Upgrade Billio
Slide 4: Near-Term CMS Catalysts
Near-Term CMS 1. Catalysts 2. 3. 4. 5. 6. Governor Progress Ten-year Michigan Leader Parent .NOLs 3 . .Growth Constructive Capital Michigan Strong Credit . progress ENERGY and upgraded inrating visibility customer cost supportive GDP investment self-funded tax Catalysts economy made, credits control
Slide 5: Catalyst 1: Constructive Michigan Regulation
CATALYST CMS •New John Commission Sally .Greg 4 .MPA Previous Michigan Public Education BS . . provides in Commissioner Quackenbush White Talberg ENERGY from Environmental Sector Utility Experience Public Department (I) the #1 (I) improvements Term Consultants Commission –Lyndon Term Constructive Se
Slide 6: Regulatory Actions
Regulatory •CMS 5 As Will Reflects Sustains MPSC requested ENERGY fileapproved suspends cost gas capital Actions plantlant reductions by investment Consumers gas GE Smart . . rate .turbine Certificate . Energy beyond case recovery contract schedule meter plan of Necessity in and for opt-out 2014 Cro
Slide 7: Catalyst 2: Major Capital Investment Plan
CATALYST CMS Major Karn/Weadock Environmental Ludington Cross Thetford Consumers Campbell Gas Reliability Capital New $7.0 $8.0 $7.3 (bils) Amount Average $6.5 .2013-2017 <2% 6 . . . Transmission drives Gas ENERGY Winds® Projects Investment Base Natural Plant Generating Pumped & 2018-2022 EPS Smart
Slide 8: Long-Term Capital Investment Plan
Long-Term $1.6 New Peer $1.5 CMS Amount .a2003 7 .Source: . . Average 1.4 Pace ten-year Gas 2004 ENERGY 1.2 (bils) Plant 10K; 2005 Capital 1.0 plan First actual and 0.8 2006 provides Investment Gas five 0.6amounts 2007 0.4 Infrastructure years 0.2 long-term 2008 $0.0 through a7.2009 Next . . visible
Slide 9: Installed Capacity and Peak Demand
Capacity CMS Installed Classic Peak MW Up .2012 8 . . to . need 9,500 Demand 2013 ENERGY 1,500 7 Capacity .Coal looms. ..2014 9,000 MW . .with Plants 2015 8,500 Shortfall Excl 11% 18% 2016 8,000 Classic Reserve 2017 7,500 7 Margin 7,000 6,500 6,000 5,500 5,000 0
Slide 10: Gas Generating Plant Project
Gas •CMS 2012 Air Certificate Project Investment Cumulative 9 Generating Demonstrate File Decision Permit Plant 2013 ENERGY CON Award CON within of Submitted 2014 (mils) early Spending plant Necessity Major need 2015 summer 270 —investments through $6 Contracts Approval 6days 2016 Submit 118 $112 20
Slide 11: Catalyst 3: Strong Michigan Economy
CATALYST CMS Gross 5th Highest U.S. .Source: 10 . . .Best Michigan Total ENERGY Domestic U.S. quintile 11% = 6.7% #3 Department performance –Fourth Product Michigan quintile –of2010 Economy among Commerce Third through thePast quintile best –2012 bea.gov, 3in Years Second the nation. real . . . quin
Slide 12: Catalyst 4: Electric Cost Reductions
CATALYST CMS Electric Annual Peer -0.5% Examples Three Pension Health Labor SAP Productivity .Source: 11 . . . Average outstanding efficiencies ENERGY voluntary agreements Consumers care Change SNL Non-fuel prefunding ofsharing #4– up Cost data up41% 2012 separation 7% Strong cost O&M service Reduct
Slide 13: Strong Cost Performance and Customer Focus
Strong CMS Average 7% Inflation Consumers Reinvested 2006-2012 Examples Amount .•Future 12 .Workforce Western SAP Small Productivity Benefit Consumers . .Peers holds ENERGY 40 (2013-2017E) Customer coal Annual Past 2% plans coal of down Annual -6% -0.5% restructuring plants -8% Cost Smart (annual 50
Slide 14: Catalyst 5: Credit Rating Upgrade
CATALYST Scale A A- BBB+ BBB S&P Consumers BBB- BB+ BB BB- B+ B B- CMS Outlook Present .Positive 13 . A2 B2 .B3 A3 B1 .Ba2 Ba3 Parent /Ba1 Moody’s Baa2 ENERGY Unsecured Baa3 Fitch Baa1 Prior Stable Secured rating Moody’s #5 2002 Fitch Stable – Credit best inRating historyUpgrade of the Company. ....
Slide 15: Operating Cash Flow
Operating CMS Amount 2.0 Gross $1.7 $1.4 Interest $2.2 $2.1 $2.0 $1.9 $1.8 Working $1.3 Base Investment Cash 2011 aNOLs ----- 14Non-GAAP 1.5 $1.6 $1.5 Investment 2012 flow ENERGY operating &1.0 (bils) Credits capital Cash before 2013E 0.5 choices $2.5 0Flow cash and (0.5) $0.8 dividend 2014E taxes f
Slide 16: Catalyst 6: Net Equity Needs and Self-Funding
CATALYST CMS Net $0.7 $0.8 $0.4 2011 $0.1 $0.2 Gross .a“Block” ----- 15.Maintain . .NOLs $0.7 $0.4 self-funded. 2012 ENERGY NOLs Equity and 2013E existing #6 (bils) Tax –a $0 EPS 2014E $1.5 Credits DRIP $0Growth $0 $1.2 2015E and $0$1.1 $0 continuous . .2016E $0 .$0.3 . $0$0.2 2017E equity $0 $0prog
Slide 17: Five-Year EPS Growth Target
Five CMS EPS 7% $1.70 +12% +11% +7% Target 2003 Growth •Transparent Targeting aPredictable .----- 16.Ten-year 5%-7% Dividend Gross Constructive Adjusted . .+7% adistinguish Key 2004 ENERGY Actual +4% Growth 5% 6% operating 5% real Takeaways 11th -investment EPS 2005 growth +12% 7% 8% +7% =growth reg
Slide 18: GAAP Reconciliation
GAAP Reconciliation
Slide 19: Earnings Per Share By Year GAAP Reconciliation
CMS ENERGY CORPORATION Earnings Per Share By Year GAAP Reconciliation (Unaudited) 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Reported earnings (loss) per share - GAAP ($ 0.30) $ 0.64 ($ 0.44) ($ 0.41) ($ 1.02) $ 1.20 $ 0.91 $ 1.28 $ 1.58 $ 1.42 After-tax items: Electric and gas utility 0.21 (
Slide 20: Reconciliation of Gross Operating Cash Flow to GAAP Operating Activities
CMS Energy Reconciliation of Gross Operating Cash Flow to GAAP Operating Activities (unaudited) (mils) 2011 2012 2013 2014 2015 2016 2017 Consumers Operating Income + Depreciation & Amortization $1,527 $1,635 $1,735 $1,821 $1,948 $2,011 $2,113 Enterprises Project Cash Flows 24 17 20 29 37 44 56 Gros