Cms Energy Corporation · NYSE:CMS

Cms Energy — Investor Presentation (December 2016)

10 slides from Cms Energy's investor presentation, Dec 8, 2016

1. Slide 1: Future Capacity and Capex Update

   Future Capacity and Capex Update December 8, 2016  Palisades Gas Pipeline

2. Slide 2: This presentation is made as of the date hereof and contains “forward-looking statements” as

   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

3. Slide 3: Palisades PPA Termination . . . . mutually beneficial

   Palisades PPA Termination . . . . Early PPA termination Benefits customers Good for investors Palisades . . . . mutually beneficial. 2

4. Slide 4: Early Termination of Palisades PPA

   Early Termination of Palisades PPA . . . . PPA Cost (mils) Contract Customer ~$45 mil Key Points $450 price-to- Savings per year Consumers • PPA to terminate in 2018 (vs 2022) 400 • Savings shared with owner, and our 350 customers (50/50) 300 • Contingent on MPSC approval 250 Market • Securitization

5. Slide 5: Replacement Includes

   Replacement Includes . . . . Palisades Replacement Plan • Energy efficiency • Demand #2 Ludington Jackson Solar/Wind #4 Ludington Apple Blossom response Pumped Storage Gas Plant Pumped Storage Wind Farm • Renewables (73 MW) (540 MW) (73 MW) (100 MW) • DIG • New gas capacity 2015 Dec 2015 Apr 2016 Ap

6. Slide 6: Increasing Capital Investment by $1 billion

   Increasing Capital Investment by $1 billion . . . . 2016 - 2025 2018 - 2027 $17 billion $18 billion Incremental Capex • Gas main replacement • Supply replacement Future Opportunities Electric Gas • More gas Infrastructure & Infrastructure & Electric infrastructure Gas Maintenance Maintenance Infrast

7. Slide 7: EPS Guidance

   EPS Guidance . . . . a EPS $2.10 a +7% Average growth per year $2.02 +7%  $1.89 $2.00 +6% $1.77 $1.87 $1.99 $1.85 $1.66 $1.78 $1.73 $1.55 $1.66 Not in Plan $1.63 $1.45 $1.55 Updated Law $1.36 $1.52 Capex Opportunities $1.44 Big Bets $1.35 Original guidance 0 2010 2011 2012 2013 2014 2015 2016 __

8. Slide 8: Consistent Growth Through 6% to 8%

   Consistent Growth Through . . . . 7% CAGR a EPS Dividend 6% to 8% 7% Weather Recession Recession Help _____ Hurt a Adjusted EPS (non-GAAP) Cold 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Feb. Cold Mild Hot Warm Mild Cold Summer- Hot Hot Warm Mild Polar Cold Feb. Warm

9. Slide 9: GAAP Reconciliation

   GAAP Reconciliation

10. Slide 10: 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 2013 2014 2015 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 $1.66 $1.74 $1.89 Pretax items: Electric an

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