Cms Energy Corporation · NYSE:CMS
Cms Energy — Investor Presentation (September 2013)
20 slides from Cms Energy's investor presentation, Sep 4, 2013
Slide 1: Investor Meetings September 4-6, 2013
Exhibit 99.1 Investor September Cross Gas Consumers Combined Winds Meetings 4-6, Smart Energy Cycle 2013 Energy Park PlantProgram
Slide 2: Forward-looking statements and non-GAAP information
Thispresentation relevant from STATEMENTS 10-Qs. important obligation The comparable CMS adjusted regulatory able 2 to presentation time Energy estimate CMS legal basis. factors to items GAAP time Energy’s update provides decisions. Management AND the from also that is inmeasure impact made any CMS
Slide 3: CMS EPS and Fair Utility Business Model
CMS $1.55 7% EPSa $ $1.26 $0.96 $1.08 $0.90 $0.81 $0.84 2003 Fair Utility aSafe, b 11th Results Needed Customer Ten-year Constructive Consistent Self-funded EPS Operating has 3 Fair Adjusted $1.25 allowed and & year 2004 excellent 1.21 Business 5% Utility investment Safe, investment dividend excludi
Slide 4: 2013 Adjusted EPS Guidance
CMSSummer 2012 First (non-GAAP) Hot +13¢ Guidance $1.52 Adjusted 2013 -13¢ Winter Warm $1.55 Reinvestment Reliability Electric +7¢ Gas Better Sales Health Financing delivering 4 Weather case Half 4¢ Manages to Than care Weather deferred EPS $1.55 Second & the complete &2Plan other other high (non-GA
Slide 5: Progress toward Energy Law Goals
20083.3% Progress Energy Goal Gas Renewable 5 Electric Law Efficiency Ahead 3.85% . Energy .. .4.1% . of 2008 Plan 8% 5.5%10% 2015
Slide 6: Regulatory Lag and ROE vs. Peers
2008 Regulatory (Months 10 12 Months 8 10.8% Small 0 Peers 10 10.2 .10.4 6 .Peers Michigan 6 4 .008 LawtoPeers) .2010 Order) Lag . provided 2009 .. RRA, File-and-implement 2 Source: Authorized (CMS Consumers Michigan vs. SNL ROE .fair 10.6 . Premium 20116 months Energy and 2013 2012 timely Electric
Slide 7: Electric Overhead Cost Performance vs. Peers
2012 (per Overhead Consumers Peer $0 Source: Non-Fuel (Pct CMS .Peers 7 . .$400 . Customer) of Average better Electric 17% 23% Revenue) SNL, O&M than Energy $206 O&M Form peers. Electric 1Cost Performance $101 ....
Slide 8: Structural Costs: Benefit Changes vs. Peers
Structural 2012 6 Peers 8 -2 +5% Source: CMS -8 Benefit 2005 Timeline 2011 Union Healthy New .Retiree . .-4% over Costs . betterBenefit 2009 salaried union 2012 2006 employees, 2012 health Changes SNL, living 2013 2007 impact hires -2% CAGR Form care Changes employees initiated, 2008 pay 2013 than h
Slide 9: Electric Prices and Residential Bill Share of Income
Electric 2011 National 7% UT Source: .MS 9 . . .CO competitive Residential CA eia.gov Prices average WY. & .MA Bill nationally 3.7% . census.gov, . WA as Percent MNand DC disposable improving. ofRI Disposable NH NJ income ILIncome ME70% AKofNM household VT WI NDincome IA ID NE MT MD MI SD OR NY VA C
Slide 10: Cost Reductions and Inflation Trend
Trend Percent -21% Inflation 25% P 0 Accelerated -9% Reductions New 2006 -25% -15% .Lines 10 .rior . . .Plan Plan 2007 Cost smoothed accelerated; ofChange O&M Reductions 2008 -6% CostCost for 2009 funding illustrative Savings 2010investment 2011 . .purposes . .2012 and 2013reducing 2014 2015 risk.
Slide 11: New Cost Savings Avoid Rate Cases
New Gas $49 2013 aTax/Other Electric $100 Cross .Tax 2014 $0 11 .Until . .Benefits Rate fund Cost 2014 Benefits Winds? 2015 Rate Case elimination Savings test Case Avoideda year Avoideda . . .of . next gas and electric cases!
Slide 12: Rate Case Timeline: Electric and Gas
Rate ELECTRIC New Energy Securitization July CON filed GAS File rate Base ROE EPS .a2013 12 .Includes . .case annual 26 5%—7% underway. August Case Michigan Ratesa 10.3% 2014 •Case Securitization Policy Elimination surcharges 2015 Tax Avoid On Avoid 10.3% No 2 •5%—7% •Track •Air CON Increase 2016 Ga
Slide 13: Enhanced Customer Investment Strategy
Enhanced Prior Rate ROE Lowers Customer Investment Helps (“Free” O&M EPS, Growth .Sustains 13 . . . .case OCF New Subject allows costs 700 filings base Near-Term &(2013-17) (2013-17) MW CMS dividend torate review Annual GCC) to increases deliver Strategy $7 -1% growth 10.3% Avoid billion -2% even <5
Slide 14: Ten-Year Capital Investment Plan
Ten-Year Clean $3 Environmental Renewable .Gas 14 . .Billion . conversions inPower customer Capital $2 energy Capacity Billion NewPipeline projects Investment Ludington gas $3.5 Reliability generation (none replacements Billion Plan Pumped “bet $4 Infrastructure . .Consumers .the Billion . Storage E
Slide 15: Ludington Pumped Storage Upgrade
Ludington Increase Operate $800 $200 $600 .Consumers 15 . . . underway. million for capacity efficiency Upgrade Energy 30maintenance investment upgrade years byby share to15% before 5% 2,200 over $400 next MW ten million major years . . . . overhaul
Slide 16: Reliability Investments and Outage Improvement
Investments > 262 280 5-year 204 2 0 Last Investment Next Customer (bils) Line Total Heat-related down .to 16 .007 20% .previous . 5benefit clearing 52012 investment 60% years improvement Years Outage reliability in year’s customers, in outages (forestry) 2013 Electric $0.5 Minutes peak. compared $0
Slide 17: Michigan Energy Policy Timeline
Michigan Renewable Electric Energy Additional Length “Appendix Seven 2013 Jan-Apr May-Jun answers Sep-Nov Nov feedback Future Source: .recommendations 17 . . . Final topublic Governor improve of Topics efficiency michigan.gov/energy choice Company Analyze Draft Preparing cases, reports areas A” ener
Slide 18: Key Takeaways
Key EPS 5% 7% $1.70 +4% +12% +11% +7% Actual 2003 5%-7% Growth Dividend Gross Cost Transparent Low Needed Ten-year .Constructive 18 . . . Takeaways adistinguish rates reductions +8% 2004 Yield operating Growth EPS areal investment Adjusted investment growth 2005 =~4% growth regulatory 7%.cash 8% CMS
Slide 19: GAAP Reconciliation
GAAP Reconciliation cs 1D
Slide 20: Earnings Per Share By Year GAAP Reconciliation
CMS ENERGY CORPORATION Earnings Per Share By Year GAAP Reconciliation (Unaudited) 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Reported earnings (loss) per share - GAAP ($ 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 (