Slide 1: 2024 Year-End Results & Outlook
2024 Year-End Results & Outlook February 6, 2025
Slide 2: Forward-Looking Statements and Non-GAAP Measures
This presentation is made as of the date hereof and contains “forward-looking statements” as defined in Rule 3b-6 of the Securities Exchange Act of 1934, Rule 175 of the Securities Act of 1933, and relevant legal decisions. The forward-looking statements are subject to risks and uncertainties. All f
Slide 3: Investment Thesis
Investment Thesis . . . Clean Energy Industry-leading net zero commitments Leader s Co or Strong Infrastructure Cash Flow & Renewal st -w Balance Sheet Inve orkers Excellence through the Cu Customers sto m ers Attractive & Constructive Top-tier regulatory jurisdictiona Diversified Legislation & Terr
Slide 4: 2024 Successes
2024 Successes . . . People Planet Prosperity • Restored power to >93% of customers • Filed 20-yr REP adding 1 GW of solar • Delivered adjusted EPS of $3.34 – within 24 hours in 2024 – compared to and 2.8 GW of wind to long-term Plan toward the high end of our guidance 87% in 2023 • Outlines plans t
Slide 5: Updated Customer Investment Plan
Updated Customer Investment Plan . . . New Utility Investment Plan Rate Base Growth Non-Rate Base Earningsb Up $3B from prior plan ✓ ~$20M pre-tax for ~8½%/yr a $39.4B FCM by 2029 68% 26% Electric utility investment $26.2B ✓ ~$60M/yr pre-tax ’25 – ’29 for Energy $20B 32% Efficiency incentive 42% ✓ N
Slide 6: Long-Term Opportunities
Long-Term Opportunities . . . Electric Distribution Electric Supply Long-term Plan/ Reliability Roadmap Renewable Energy Plan (REP) Integrated Resource Plan (IRP) Reference Filing 2025 – 2035 2025 – 2045 2027 – 2045+ Key • 20K poles replaced each year • 9,000 MW solar • >850 MW of battery storage In
Slide 7: Expansive Economic Development Efforts
Expansive Economic Development Efforts . . . Economic Development (MW) Electric Gas Combined 2022 New Load 2023 New Load 2024 New Load ~9,000 additional opportunity Benteler Automotive Corning Inc. Battery component production Solar production facility $105M investment $900M investment Manufacturing
Slide 8: Michigan's Strong Regulatory Environment
Michigan’s Strong Regulatory Environment . . . 2024 2025 Supportive Energy Policy Electric • Timely recovery of investments ✓ Forward-looking test Oct. 18th: By Mar. 31st: Q2: years/earn authorized Revised Expected Order File New ROEs $277Ma, 10.25% ROE U-21585 Rate Case U-21585 ✓ 10-month rate case
Slide 9: Financial Results & Outlook
Financial Results & Outlook . . . 2024 Full-Year Results Amount Commentary Delivered toward the Adjusted EPS $3.34 high end 2025 Full-Year Outlook Adjusted EPS Guidance $3.06 $3.54 – $3.12 $3.60 Toward the high end Annual Dividend Per Share (DPS) $2.17 Up 11¢ Long-Term Outlook Adjusted EPS Growth +6
Slide 10: 2024 Results
2024 Results . . . Full Year Adjusted EPS by Segment 2023 2024 Reported EPS $3.01 $3.33 2024 Utility $3.39 a Adjustments 0.10 0.01 Adjusted EPSa 3.11 35X $3.34 NorthStar 0.21 (0.26) Fourth Quarter Parent 2023 2024 Total Adjusted EPS $3.34 Reported EPS $1.05 $0.87 Adjustmentsa -- -- Adjusted EPSa $1.
Slide 11: 2024 Objectives Achieved
2024 Objectives Achieved . . . Objectives Actual Adjusted EPS guidance $3.29 – $3.35 Toward the high end $3.34 ✓ Toward the high end DPS growth guidance +6% to +8% $2.17 (up 11¢) ✓ Target credit ratings Solid investment grade Solid investment grade ✓ FFO/Debt target: Mid-teensa FFO/Debt target: Mid-
Slide 12: 2025 Guidance Offers Continued Growth
2025 Guidance Offers Continued Growth . . . Adjusted EPS Utility $4.01 – 4.05 NorthStar 0.18 – 0.22 Parent (0.65) – (0.67) Consolidated EPS $3.54 – $3.60 Toward the high end . . . compounding off 2024 actuals. 12
Slide 13: 2025 Adjusted EPS Growth Range
2025 Adjusted EPS Growth Range . . . 21¢ 3¢ a 39¢ $3.54 - $3.60 a $3.34 (37) – (43)¢ 2024 Normal Rates, Cost Savings Parent Financing, 2025 Weather Renewables & Productivity Tax & Other & Investment (incl. Storms) Presentation endnotes are included after the appendix. . . . reflects another year of
Slide 14: Near- and Long-Term Objectives
Near- and Long-Term Objectives . . . 2025 Long-Term Plan Adjusted EPS guidance $3.54 – $3.60 +6% to +8% Toward the high end Toward the high end Dividend Payout Ratio ~60% ~60% over time Target credit ratings Solid Solid investment grade investment grade FFO/Debt target: Mid-teensa FFO/Debt target: M
Slide 15: DIG (750 MW) & Peakers (200 MW)
DIG (750 MW) & Peakers (200 MW) . . . Pre-Tax Income Opportunities (M) $80 ~$75 70 ~$65 ~$60 60 50 $43 40 ~$30 30 20 10 0 Historic 2024 2026 -2029 Avg. 2026+ 2026+ Capacity Price ($kw-mon) ~$3.00 ~$3.25 ~$4.50 ~$7.50 ~$10.00 Capacity Available 0% 0% ~25% ~25% ~25% . . . supports the Plan with future
Slide 16: 2025 Planned Financings
2025 Planned Financings . . . Financings Existing Facilities Plan YTD a ($M) ($M) ~$1.8B of net liquidity Consumers Energy: $250M First Mortgage Bonds $1,125 -- (Nov-2025) CMS Energy: Senior Unsecured $1,270 -- Planned Equity Up to $500 -- $1,100M (Dec-2027) Retirements (incl. term loans): $550M Con
Slide 17: 2025 Sensitivities
2025 Sensitivities . . . Full-Year Impact Sensitivity Adj. EPS OCF 2025 Adj. EPS Sensitivities (1% Full Year in Volume) Salesa (¢) ($M) Electric Gas Electric (~37,000 GWh) + 1% + 7 + 27 Residential 4¢ 3¢ Gas (~308 Bcf) + 1 + 4 + 17 Commercial 2½ ~½ Industrial ½ ~½ Gas Prices + 50¢ + 0 + 60 Utility
Slide 18: Industry-Leading Financial Performance
Industry-Leading Financial Performance . . . Adjusted EPS +6% to +8% Dividend Weather Help Recession Recession Recession / Hurt Pandemic 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025+ Cold Mild Hot Warm Mild Cold Summer- Hot Hot Wa
Slide 19: Q&A Thank You!
Q&A Thank You! 1919
Slide 20: Appendix
Appendix 2020
Slide 21: Strong Balance Sheet
Strong Balance Sheet . . . Consumers Energy S&P Moody’s Fitch Key Strengths Senior Secured A A1 A+ ✓ Forward-looking recovery ✓ Constructive rate construct Commercial Paper A-2 P-2 F-2 ✓ Strong operating cash flow Outlook Stable Stable Stable generation CMS Energy Senior Unsecured BBB Baa2 BBB ✓ 100
Slide 22: 2024 Adjusted EPS
2024 Adjusted EPS . . . 31¢ $3.34 a a $3.11 4¢ (6)¢ (6)¢ 2023 Weather Rates, Customer Usage, 2024 Renewables Initiatives Non-Utility, & Investment Tax & Other Presentation endnotes are included after the appendix. . . . managing through COVID-19 risks. . . . reflects another year of premium growth.
Slide 23: Operating Cash Flow
Operating Cash Flow . . . Adjusted Operating Cash Flow NOLsa & Credits >$2.7B Year Amount ($B) ~$13.6B in aggregate 2025 $0.3 >$1.8B 2026 $0.3 ~$9.3B in 2027 $0.3 aggregate 2028 $0.3 2029 $0.3 2020 - 2024 2025 - 2029 Plan Average Average Presentation endnotes are included after the appendix. . . . r
Slide 24: Utility Customer Investment Plan
Utility Customer Investment Plan 5-Year Plan ($B) 2025 2026 2027 2028 2029 Total Clean Energy Generation $0.8 $1.2 $1.3 $0.9 $0.9 $5.2 Electric Distribution & Other 1.7 1.6 1.8 1.8 1.7 8.5 Gas Utility 1.2 1.3 1.3 1.2 1.3 6.3 Total $3.7 $4.1 $4.4 $3.9 $3.9 $20.0 Depreciation & Amortizationa $1.3 $1.4
Slide 25: Endnotes
Endnotes “cus evens?
Slide 26: Presentation Endnotes
Presentation Endnotes Slide 3: aUBS Research, 2024 state rankings and D.C. Slide 5: aAssumes $26.2B rate base in 2024, $39.4B in 2029, CAGR bOver plan period years 2025-2029 Slide 6: aDrives 2nd quartile performance for SAIDI excluding Major Events Days bA portion of the estimated capital investment
Slide 27: GAAP Reconciliation
CMS Energy provides historical financial results on both a reported (GAAP) and adjusted (non-GAAP) basis and provides forward-looking guidance on an adjusted basis. During an oral presentation, references to “earnings” are on an adjusted basis. All references to net income refer to net income availa
Slide 28: Reconciliation of GAAP to Non-GAAP Operating Cash Flows
CMS ENERGY CORPORATION Reconciliation of GAAP Cash Flows from Operating Activities to Non-GAAP Adjusted Cash Flows from Operating Activities (Unaudited) 2020 2021 2022 2023 2024 Cash Flows from Operating Activities $ 1,276 $ 1,819 $ 855 $ 2,309 $ 2,370 Adjustments - Discretionary Pension Contributio
Slide 29: Reconciliation to Funds from Operations and Adjusted Debt
CMS ENERGY CORPORATION Reconciliation of GAAP Cash Flows from Operating Activities to Non-GAAP Funds from Operations Reconciliation of GAAP Indebtedness to Non-GAAP Adjusted Debt (Unaudited) 12/31/2024 FUNDS FROM OPERATIONS Net Cash Provided by Operating Activities $ 2,370 Reconciling Items: Changes
Slide 30: Reconciliation of GAAP EPS to Adjusted EPS by Segment
CMS ENERGY CORPORATION Reconciliation of GAAP EPS to Non-GAAP Adjusted EPS by Segment (Unaudited) In Millions, Except Per Share Amounts Three Months Ended Twelve Months Ended 12/31/24 12/31/23 12/31/24 12/31/23 Electric Utility Reported net income per share $ 0.47 $ 0.50 $ 2.28 $ 1.89 Reconciling it
Slide 31: Reconciliation of GAAP Net Income to Adjusted Net Income
CMS ENERGY CORPORATION Reconciliation of GAAP Net Income to Non-GAAP Adjusted Net Income (Unaudited) In Millions, Except Per Share Amounts Three Months Ended Twelve Months Ended 12/31/24 12/31/23 12/31/24 12/31/23 Net Income Available to Common Stockholders $ 262 $ 306 $ 993 $ 877 Reconciling items:
Slide 32: Net Income Reconciliation by Quarter 2024
CMS ENERGY CORPORATION Reconciliation of GAAP Net Income to Non-GAAP Adjusted Net Income by Quarter (Unaudited) In Millions, Except Per Share Amounts 2024 1Q 2Q 3Q 4Q Net Income Available to Common Stockholders $ 285 $ 195 $ 251 $ 262 Reconciling items: Electric utility and gas utility 4 2 * * Tax i
Slide 33: Net Income Reconciliation by Quarter 2023
CMS ENERGY CORPORATION Reconciliation of GAAP Net Income to Non-GAAP Adjusted Net Income by Quarter (Unaudited) In Millions, Except Per Share Amounts 2023 1Q 2Q 3Q 4Q Net Income Available to Common Stockholders $ 202 $ 195 $ 174 $ 306 Reconciling items: Electric utility and gas utility 3 30 6 3 Tax