Dte Energy Company · NYSE:DTE
Dte Energy — Corporate Update (September 2021)
31 slides from Dte Energy's corporate update, Sep 20, 2021
Slide 1: DTE Energy Business Update September 20-21, 2021
DT E E N E R GY B U S I N E S S U P D AT E SE PTE MBE R 20 -21, 2021
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: Focusing on our employees, customers and communities while delivering for investors
Focusing on our employees, customers and communities while delivering for investors Employees • Recognized as a Gallup Great Workplace for the ninth consecutive year • Building on our diversity, equity and inclusion focus with acceleration of commitment to build an even better workplace Customers •
Slide 4: Continuing to deliver successful operational results
Continuing to deliver successful operational results DTE Electric • Targeting net zero carbon emissions by 2050 − Retired River Rouge Power Plant in 2Q 2021 • Voluntary renewables program MIGreenPower is one of the largest in the country with over 35,000 customers and 950 MW of subscriptions DTE Gas
Slide 5: Maintaining 5% - 7% long-term operating EPS growth target
Maintaining 5% - 7% long-term operating EPS1 growth target DTE annualized operating EPS Continued strength in 2021 from continuing operations ✓ Increased 2021 operating EPS guidance from a midpoint of $5.51 per share to $5.77 per share ✓ Positioning DTE for future success ✓ Confirming 5% - 7% operat
Slide 6: DTE Energy benefits from being a predominantly pure-play regulated utility
DTE Energy benefits from being a predominantly pure-play regulated utility Operating earnings Enhanced strategic ✓ Premier, predominantly pure-play regulated electric and natural focus gas utility 70% Investments in ✓ Substantially growing rate base with $17 billion of utility growth Predominantly c
Slide 7: Two high-quality utilities operating in a constructive regulatory environment
Two high-quality utilities operating in a constructive regulatory environment Michigan Public Service Commission Ranking of U.S. regulatory jurisdictions1 (Michigan in tier 1) Tier 1 7 Tier 2 9 Dan Scripps Katherine Peretick Tremaine Phillips Chair Commissioner Commissioner Tier 3 18 2021 - 2025 MPS
Slide 8: Distinctive continuous improvement culture drives strong track record of cost management vs. peer average
Distinctive continuous improvement culture drives strong track record of cost management vs. peer average All 10,000+ employees engaged in CI to surface and Average annual percentage change in O&M costs solve problems 2008 - 2020 Electric utility1 3% • Controlling costs while improving the customer
Slide 9: DTE Electric progressing on key initiatives; accelerating distribution and generation investments
DTE Electric progressing on key initiatives; accelerating distribution and generation investments Electric investment (billions) $14 Advancing our clean energy investments and plan to accelerate the modernization of our electric grid $2 $12 • Progressing toward net zero carbon emissions target by 20
Slide 10: MIGreenPower offers DTE Electric customers simple and affordable renewable energy solutions
MIGreenPower offers DTE Electric customers simple and affordable renewable energy solutions supporting wind and solar projects DTE Electric - MIGreenPower DTE Electric carbon emissions reductions • Program initiation: February 2017 • 35,000 customers 32% 50% • 950 MW subscribed 80% 100% • Average ne
Slide 11: DTE Gas progressing on key initiatives; replacing aging infrastructure
DTE Gas progressing on key initiatives; replacing aging infrastructure to reduce greenhouse gas emissions Gas investment (billions) Advancing our clean energy investments and upgrading and replacing aging $3.5 infrastructure $0.5 Additional $3.0 opportunity • Targeting net zero greenhouse gas emissi
Slide 12: CleanVision Natural Gas Balance helps reduce the carbon emissions footprint of DTE Gas customers
CleanVision Natural Gas Balance helps reduce the carbon emissions footprint of DTE Gas customers through carbon offsets and RNG DTE Gas - Natural Gas Balance • Program initiation: January 2021 DTE Gas greenhouse gas emissions reductions • Customers: 3,000+ • RNG will be sourced by transforming landf
Slide 13: Visit us: DTE Investor Relations, 2021 ESG Report
VISIT US: D T E I N V E S T O R R E L AT I O N S 2021 ESG REPORT 2 0 1 9 - 2 0 2 0 C O R P O R AT E CITIZENSHIP HIGHLIGHTS
Slide 14: Appendix
DTE Appendix 14
Slide 15: Raised 2021 operating EPS guidance
Raised 2021 operating EPS1 guidance (millions, except EPS) Original guidance Revised guidance Primary drivers Warmer than normal weather, DTE Electric $826 - $840 $853 - $867 sustained continuous improvement and uncollectible expense favorability DTE Gas 202 - 212 202 – 212 Power & Industrial Projec
Slide 16: Revised 2021 cash flow and capital expenditures guidance to reflect DTM spin impacts
Revised 2021 cash flow and capital expenditures guidance to reflect DTM spin impacts Cash flow Capital expenditures (billions) Original Revised (millions) Original Revised guidance guidance guidance guidance Cash from operations1 $3.0 $2.7 DTE Electric Capital expenditures (4.2) (3.9) Base infrastru
Slide 17: Maintaining strong cash flow, balance sheet and credit profile
Maintaining strong cash flow, balance sheet and credit profile (billions) Planned equity issuances • Issued $1 billion in green bonds in 2021; $2 billion issued in total in the past four years 2021 - 2023 • Strong investment-grade credit rating $1.3 − Targeting ~16% FFO1 / Debt2 • Significant debt p
Slide 18: Utilities have provided solid rate base growth while achieving authorized returns
Utilities have provided solid rate base growth while achieving authorized returns DTE Electric rate base DTE Electric ROE (billions) $18.9 $20.4 10.3% 10.1% 10.0% 10.0% 9.9% $15.6 $16.5 $17.7 2016 2017 2018 2019 2020 2016 2017 2018 2019 2020 Authorized ROE Earned ROE DTE Gas rate base DTE Gas ROE (b
Slide 19: DTE Electric and DTE Gas regulatory update
DTE Electric and DTE Gas regulatory update DTE Electric DTE Gas • Renewable energy plan (U-18232) • Voluntary renewable plan (U-20713) • General rate case filed February 2021 (U-20940) − Received order: July 2020 − Received order: June 2021 − Effective: January 1, 2022 − 350 MW of additional renewab
Slide 20: Environmental, social and governance efforts are key priorities
Environmental, social and governance efforts are key priorities; aspiring to be the best in the industry Environmental Transitioning towards net zero greenhouse gas emissions Delivering clean and reliable energy to customers Protecting our natural resources Social Focusing on the diversity, safety,
Slide 21: Award-winning commitment to being a top ESG employer in the country
Award-winning commitment to being a top ESG employer in the country Superior corporate citizenship Ambassadors Championing Veteran friendly employer America’s Most Responsible and community involvement Excellence Award for commitment Companies 2021 to supporting minority businesses Gallup Great Work
Slide 22: Environmental sustainability is critical to the creation of long-term shareholder value
Environmental sustainability is critical to the creation of long-term shareholder value Driving collaboration in the fight against climate change • Leading by example with aggressive goal to achieve net zero carbon emissions by 2050 • Active participant in coalitions that advocate for strong environ
Slide 23: Continuing the journey to provide clean and reliable energy to customers
Continuing the journey to provide clean and reliable energy to customers Current renewable energy portfolio 1,800 MW capacity Planned capacity additions 2020 - 20251 • Wind: 850 MW • Solar: 935 MW • Blue Water Energy Center: 1,100 MW Planned coal capacity retirements 2020 - 2025 • 2021 River Rouge:
Slide 24: More than doubling renewable energy by 2024
More than doubling renewable energy by 2024 Cleaner generation mix 1% 2% 17% 20% 25 – 30% Renewables 18% 20 - 25% Natural gas 20% 77% 20% Nuclear & other 45% 30% Coal 2005 2023E 2030E River St. Trenton Belle Monroe Rouge Clair Channel River 2021 2022 2030 2040 24
Slide 25: A force for growth and prosperity in the Michigan communities we serve
A force for growth and prosperity in the Michigan communities we serve World class volunteerism improves our communities Our efforts include education and mentoring programs and contributes to employee engagement Partnering with a correctional facility to train inmates to Consistently recognized as
Slide 26: Health and safety of our people is a priority
Health and safety of our people is a priority • Multiple safety committees spanning all levels of the company providing input into seasonal safety plans, addressing unique challenges of each business unit • Regular employee safety training with culture that everyone at DTE is 100% accountable for th
Slide 27: Committed to diversity, equity and inclusion
Committed to diversity, equity and inclusion; creating an environment where all are welcome Office of Diversity, Equity and Inclusion Employee resource groups promote a safe and welcoming • Led by our CEO and key executive leaders, including a Director of environment and offer professional developme
Slide 28: Building on the momentum of the last decade, DTE is committed to Michigan investments
Building on the momentum of the last decade, DTE is committed to Michigan investments and supplier diversity 28
Slide 29: Governance framework provides shareholder rights and enables sustainable value creation
Governance framework provides shareholder rights and enables sustainable value creation ✓ Lead Independent Director ✓ Stock ownership guidelines for non-employee Directors ~9yr average tenure 3 Directors since 2018 added ✓ Majority voting standard Board diversity ✓ Annual Director elections 2 Best-i
Slide 30: Executive management compensation plan is aligned with our core priorities
Executive management compensation plan is aligned with our core priorities Priorities Performance-based compensation elements Annual incentive metrics Long-term metrics • Employee engagement Highly engaged employees • Employee safety Top decile customer • Customer satisfaction satisfaction • Custome
Slide 31: 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 more meaningful represe