Cms Energy Corporation · NYSE:CMS
Cms Energy — Mini-Conference, December 14-16, 2015
24 slides from Cms Energy's conference presentation, Dec 14, 2015
Slide 1: CMS Energy Mini-Conference, December 14-16, 2015
Exhibit 99.1 Beaver Creek renewable sales Mini-Conference in the Great Lakes Ludington area Pumped Storage Ray Compressor Station Cross Winds Energy Park December 14—16, 2015 Fourth largest in the world #1 LDC in gas storage #2 in
Slide 2: Forward-looking statements and non-GAAP information
This presentation relevant from STATEMENTS 10-Qs. important obligation Energy’s website forward-looking operations, periods. channel time CMS at of Investors legal results factors to www.cmsenergy.com. distribution. asset time Energy’s update decisions. AND of guidance sales, that is in and operatio
Slide 3: Looking Back: Consistent Growth, 7% Adjusted EPS CAGR
Looking 2010 vortex 2011 Feb. Back 2012 Governor —2013 CMS(D) 2014 Energy Governor 2015 Consistent Cold (R)Mild Commission Growth Hot Warm . 7% (D) Mild CAGR NewCold Commission EPSa Summer- Recession (D) Hot Commission Recession Hot Warm Weather Mild (R) Polar a Adjusted Help Cold Hurt winter EPS We
Slide 4: Looking Back: Sustainable Performance and Excellent Operations
Looking DOWN (since 2012) 39 Back Productivity a a—25% Sustainable CAGR UP 56since Performance Cleaner 2007Generation b 3,. Excellent 5, & 10Portfolio year Operations TSRCoal ending REDUCED TotalDecember Shareowner 40% 4, Renewables 2015 Returnb 3 years Improvement ADDED 5 years 10 8 (since AND year
Slide 5: Looking Ahead: Simple, Unique Model
1/2 ROA Looking Ahead PPAs Rate upside — Simple, opportunities. term—Sales increase growth or return—No atPerhaps Unique below “block” Model inflation <2 %equity . 5-Year Upside dilution <2% Plan Note: 1 and/or—Surcharges Opportunity “Real” Capital investment rate increase % and 0% other 0 (reliabil
Slide 6: Capex over ten years
Capex over tenUp years! 45% 2005-2014 2015-2024 Opportunity $10.7 bil $15.5 bil $20 + bil Upside Opportunities Replace Capacity More renewables Gas Infra. “PPAs” Expire. with more opportunity “big bets”
Slide 7: O&M Cost Savings
O&M •Attrition Service Cost $—35 Upgrades Performance $—75 +10• + Productivity . Actual 50 Net Cost Savings (Coal Reduction $—60 Gas)—35—50 $—100 Future Cost Percent • “Pole Savings Savings—6%—10% Top”(2014 Hardening—30—30 over 2006)2% Consumers FAST • Smart START! -2.7% Meters—5—25 aSource: year! .
Slide 8: Michigan's Economy and Auto Industry Growth
Michigan’s mil Auto• 24 40 MW Food Structural Arauco 15 Manufacturing •Changes Largest particleboard Changes. 25 MetalAnnouncements 20press Petroleum in North 19Impact America Plastics Fair 19 • 250 Labor Other newTax 35jobs; Total Policy $325 UpCompetitive 213. mil •drive 15 MWeconomic Rates Genera
Slide 9: Looking Ahead: Capacity Opportunities
Looking Ahead Available: • Energy —“DIG” 0% 0% (750 25%MW) 25%&25% Peakers • Capacity (200 MW) 0 20 Pre-Tax 50 90 90.Income adding(mils) value.Opportunities Signed Contracts (layering in over time) Capacity ($/kw-mth) ? $1.00 ? $2.00 ? $3.00 $4.50 $7.50
Slide 10: Looking Ahead: Capacity Diversity
Looking Ahead — Capacity Diversity . Coal reduced by over 40%! 2nd best in U.S. Renewables 11% Pumped Storage 12%. evolving to cleaner generation and becoming more cost competitive.
Slide 11: Looking Ahead: Renewables Needed
Looking Ahead Renewables Needed — Clean —NotPower in Plan Plan ..positioned . Tons CO2well (mils) for compliance. 20 Consumers Energy 2012 Emissions Retire 950 MW coal State of Michigan Target (Consumers Energy’s share) Potential Outlook — More
Slide 12: Looking Ahead: Michigan Energy Law
Looking Gov. Snyder Ahead Opportunities — Michigan ROA Energy — Fair Lawchoice; . November no subsidy December Efficiency January — February EliminateHouse waste committee Renewablesvote — full Integrated vote and Resource House full Planvote (IRP) Sen. moving Nofs Rep. toward Nesbitt the goal Senat
Slide 13: Looking Ahead: Long-Term Outlook
Looking Plan vote expected OpsAhead • Capex December. -- (bils) CMS $15.5 Energy Senate $20 . vote 7% • O&M CAGR anticipated (10)% Long-Term early (15)%2016 •Upside Sales . opportunities Growth Opportunities ½ 1on New PPAs topEnergy ofGas organic Expire Lawbgrowth. Fair Infra. Choice More IRP Renewa
Slide 14: Appendix
Appendix
Slide 15: 2015 Adjusted EPS Guidance and O&M Reinvestment
O&M$ “Reinvestment” (23) 15 Weather 12¢ Natural Helps customers Offsets (4) Adjusted Cost & EPS Other(non-GAAP) 3 Total 11¢ Guidance 2015 O&M January 2016 Reinvestment March 31 JuneSavings 30 September (mils) (mils) 30 December DIG outage . AND $ (8) provides $ 10 Reliability sustainable, (10)premiu
Slide 16: Operating Cash Flow Growth
Operating 2016 2017Cash 2018Flow 2019 Growth 2020 NOLs . Amount & Credits (bils)$0.7 Gross $0.6 operating $0.7 $0.5 cash $0.4 flowa $0.2up$0.1 $0.1upbillion $0.6 billion per year or Up 30%$0.6 overBillion five years! Interest, working capital and taxes Investment Cash flow before dividend 2014 2015
Slide 17: GAAP Reconciliation
GAAP Reconciliation
Slide 18: CMS Energy GAAP Reconciliation, Earnings Per Share by Year
CMS $1.42 Discontinued per share. ENERGY $1.66(a)$1.74 $1.25 operations CORPORATION After-tax excluding (income) items: discontinued loss Earnings Electric (*) (0.08) and Exeter Per gas Share 0.08 operations utility (0.01) By Year 0.05 (0.03) and GAAP 0.33 accounting *0.03—0.17 (*) Reconciliation Ad
Slide 19: Consumers Energy Cash Flow Reconciliation
Consumers Sources Dividends year Interest $ term Cash (1,723) end financing at year and and 2014 investing GAAP Energy preferred Uses end Sources &2015 other Tax Description activities 2015 dividends Other $Operating 185 26 Forecasted $—$—$—$—$—$—$ — Financing Cash Amount Net $ (dep (235) flow cash
Slide 20: CMS Energy Parent Cash Flow Reconciliation
CMS(50) Non 2014 (130) —$ Common CashEquity Sources at Energy Overhead year $dividend 30 Consolidated end Parent operating Consumers and 2015 (320) Federal 2015 (a) and Net Statements Energy Includes Forecasted investing tax cash payments dividends/tax used other of Cash activities in Cash Financing
Slide 21: Consolidated Cash Flow Reconciliation
Consolidated Eliminations/Reclassifications/Consolidation Common —$ (2,057) activities Cash 207 at Net year Cash Net Dividend cash end CMS cash at year 2015 used used Energy Infusions end in $in 26 investing 2014 $2015 $—$ (37) toNet Consolidated Forecasted $209 activities (30) cash $—$—$ $provided
Slide 22: CMS Energy Operating Cash Flow Reconciliation
CMS Energy Amortization 2,468 1,500 $ 1,600 2,586Reconciliation $$ Other 1,813 1,700operating $$ 1,930 1,800of$$activities Gross 2,027 1,900Operating $ 2,145 including $ 2,266 Cash taxes, Flow $ 2,401 interest to GAAP $ 2,515 payments Operating Enterprises and working Activities Project capital Cash
Slide 23: Customer Satisfaction and Performance Summary
Customer Present Adjusted +6% Uphaus bets”) -+7% • 2010 Self-funded (517) EPS Satisfaction Guidance 2012 768-3114 20152014 O&M —March . No Electric www.cmsenergy.com Present 2016 block 31 June Gas (non-GAAP) 2016 equity #3 302010 #2 September dilution! 1st 2012 Reinvestment ERFORMED Quartile (5 2014
Slide 24: a +1% a 2015 No advantage
Adjusted $1.97 $0.8 $15.5 10% $2.6 Future Keep 15-20 thru $1.21 B Process 21% 2015 Opportunity Incentive/ filings Down EPS $1.3 $1.26 Reconciliations GAAP 2018; >2016 “cap”• yr for b2%7% a+1% $1.8 Dividend Upsides 2008 As stay; –$1.36 $1.12009 Smart information rate 30 Residential of File No Law bas