Dte Energy Company · NYSE:DTE
Dte Energy — Non-Deal Roadshow (April 2023)
29 slides from Dte Energy's roadshow presentation, Apr 3, 2023
Slide 1: Business Update April 3-4, 2023
Business Update April 3-4, 2023 EXHIBIT 99.1
Slide 2: Safe harbor statement
Safe harbor statement 2 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 “antici
Slide 3: Overview
3 Overview Business Update Financial Update Environmental, Social & Governance (ESG) Appendix
Slide 4: Fully engaged team committed to delivering best-in-class results
Fully engaged team committed to delivering best-in-class results for our customers, communities and investors 1. Reconciliation of operating earnings (non-GAAP) to reported earnings included in the appendix 4 Best-in-class engagement, health and safety of our employees • Received Gallup Great Workpl
Slide 5: Executing on customer-focused capital investment plan while maintaining affordability
Executing on significant customer-focused capital investment plan while maintaining affordability Note: Gas infrastructure photo courtesy of Burns & McDonnell 5 Investing in customer-focused initiatives… …while maintaining affordability Distinctive continuous improvement culture drives cost manageme
Slide 6: Continuous improvement culture drives track record of managing cost and affordability
Distinctive continuous improvement culture drives strong track record of managing cost and affordability 61. Source: SNL Financial, FERC Form 1 and FERC Form 2; excluding fuel and purchase power from electric O&M and production expense from gas O&M Average annual percentage change in utility O&M1 co
Slide 7: Business Update
7 Overview Business Update Financial Update Environmental, Social & Governance (ESG) Appendix
Slide 8: Increased customer-focused utility investment in 5-year plan supports 6%-8% EPS growth
$15 $18 $3.1 $3.6 2022 - 2026 prior plan 2023 - 2027 current plan $18.1 Increased customer-focused utility investment in 5-year plan supports 6% - 8% operating EPS1 growth through 2027 8 DTE Gas DTE Electric ~$23 billion DTE Electric DTE Gas DTE Vantage $18 $3.6 $1.0 - $1.5 95% of 5-year investment
Slide 9: DTE Electric: transformational investments in generation and distribution
$4 $4 $8 $9 $3 $5 2022 - 2026 prior plan 2023 - 2027 current plan DTE Electric: transformational investments in generation and distribution; signed two of the largest voluntary utility contracts in the country 9 Significant progress on voluntary renewables in 2022 • Signed solar contracts with Ford
Slide 10: Significant progress on utility initiatives supports cleaner generation
Significant progress on utility initiatives supports cleaner generation with focus on affordability 1. Definition of net zero included in the appendix 10 • IRP filing prioritizes electric reliability with a focus on decarbonization and affordability Outlines generation transformation to achieve carb
Slide 11: IRP accelerates transition to cleaner energy future while ensuring reliability
IRP accelerates transition to cleaner energy future while ensuring reliability 1. Year-end generation mix represents one potential pathway and is subject to change 11 77% 45% 32% 15% 17% 19% 20% 21% 14% 12% 2% 19% 24% 28% 29% 20% 1% 14% 21% 31% 51% 62% 3% 3% 3% 5% 6% 6% 2005 2023 2027 2029 2036 2042
Slide 12: DTE Gas: replacing aging infrastructure to ensure reliability and transition to net zero
$1.6 $1.6 $1.5 $2.0 2022 - 2026 prior plan 2023 - 2027 current plan DTE Gas investment (billions) DTE Gas: replacing aging infrastructure to ensure reliability and transition to net zero emissions 12 Gas renewal program Base infrastructure Successful 2022 • Completed 220 miles of main renewal; on tr
Slide 13: DTE Vantage: strategic focus on decarbonization solutions for customers
DTE Vantage: strategic focus on decarbonization solutions for customers 1. Renewables includes wood and landfill gas facilities and new decarbonization opportunities 2. Reconciliation of operating earnings (non-GAAP) to reported earnings included in the appendix 13 Strong project development in 2022
Slide 14: Financial Update
14 Overview Business Update Financial Update Environmental, Social & Governance (ESG) Appendix
Slide 15: 2023 operating EPS guidance midpoint provides 7% growth over 2022
2023 operating EPS1 guidance midpoint provides 7% growth over 2022 original guidance midpoint 1. Reconciliation of operating earnings (non-GAAP) to reported earnings included in the appendix 2. Energy Trading earnings are expected to be negative by approximately $20 - $30 million in 1Q due to timing
Slide 16: Maintaining strong cash flow, balance sheet and credit profile
6% - 8% Maintaining strong cash flow, balance sheet and credit profile 1. Funds from Operations (FFO) is calculated using operating earnings 2. Debt excludes a portion of DTE Gas’ short-term debt and considers 50% of the junior subordinated notes as equity 3. Subject to Board approval 4. Reconciliat
Slide 17: Environmental, Social & Governance (ESG)
17 Overview Business Update Financial Update Environmental, Social & Governance (ESG) Appendix
Slide 18: ESG efforts are key priorities; aspiring to be the best in the industry
18 Environment • Transitioning towards net zero emissions at both utilities • Accelerating transition to cleaner generation • Protecting our natural resources Social • Focusing on the diversity, safety, well being and success of employees • Revitalizing neighborhoods and investing in communities • L
Slide 19: MIGreenPower program continues significant growth
MIGreenPower program continues significant growth 19 900 business customers 85,000 residential customers 2,250 MW subscribed • Allows customers to purchase up to 100% of electricity needs generated from renewable sources • One of the largest voluntary renewable programs in the nation • Largest renew
Slide 20: Natural Gas Balance program reducing GHG emissions
Natural Gas Balance program reducing GHG emissions 1. Reduction from 2005 base • Offering an affordable way to offset 25% to 100% of customers’ GHG emissions from an average home’s natural gas use • RNG will be sourced by transforming landfill emissions and wastewater treatment plant by-products int
Slide 21: Progressing on EV initiatives
Progressing on EV initiatives Charging Forward Program • Promoting EV education, infrastructure and adoption • Providing residential and commercial rebates, infrastructure support and fleet advisory services Program-to-date major milestones • 1,240 Level 2 public chargers approved and 800 installed
Slide 22: Committed to diversity, equity and inclusion; safe and welcoming environment
Committed to diversity, equity and inclusion; creating a safe and welcoming environment 22 Health and safety of our people is a priority • Multiple safety committees spanning all levels of the company providing input into safety plans, addressing unique challenges of each business unit • Received Am
Slide 23: Committed to Michigan investments and supplier diversity
$2.5b invested in Michigan businesses in 2022 65,000 jobs created since 2010 $900m invested with Detroit suppliers in 2022 $895m invested with suppliers owned by women, minorities, veterans, members of the LGBTQ+ community and disability-owned businesses in 2022 50+ supplier diversity awards earned
Slide 24: Governance framework provides shareholder rights and enables sustainable value creation
Governance framework provides shareholder rights and enables sustainable value creation 24 Best-in-class governance practices • Lead Independent Director • All board committees are composed exclusively of independent Directors • Stock ownership guidelines for non-employee Directors • Majority voting
Slide 25: Executive compensation plan aligned with stakeholder priorities
Annual or long-term incentive metrics Our team • Employee engagement • Employee safety Our customers • Customer satisfaction • Customer complaints • System reliability Our communities • Customer satisfaction • Customer complaints • System reliability Our investors • EPS • Cash flow • Relative total
Slide 26: Appendix
26 Overview Business Update Financial Update Environmental, Social & Governance (ESG) Appendix
Slide 27: IRA supports cleaner energy transition and customer affordability
IRA supports cleaner energy transition and customer affordability 27 Supports accelerated clean energy transition and customer affordability and eliminates the need for tax equity structures • Wind and solar production tax credit • Production tax credit for existing nuclear generation • Clean fuel p
Slide 28: 2023 cash flow and capital expenditures guidance
2023 cash flow and capital expenditures guidance 1. Includes equity issued for employee benefit programs 28 (millions) Cash flow Capital expenditures (billions) 2023 guidance DTE Electric Base infrastructure $1,200 New generation 500 Distribution infrastructure 1,500 $3,200 DTE Gas Base infrastructu
Slide 29: Reconciliation of reported to operating earnings (non-GAAP)
Reconciliation of reported to operating earnings (non-GAAP) 29 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 meaningful represent