Slide 1: Wells Fargo Advisors
Wells Fargo Advisors September 27, 2016 Jackson Generating Station Ludington Pumped Storage Cross Winds Energy Park Among lowest acquisition cost ever Fourth largest in the world #2 in renewable sales in the Great Lakes area Broker-Dealer Use Only
Slide 2: Forward-looking statements and non-GAAP measures
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
Slide 3: Who We Are
Who We Are . . . . #4 Largest Combination Utility in the United States Electric Electric Utility • 1.8 million electric customers • 8,900 MW of capacity Gas Gas Utility • 1.7 million gas customers • 309 bcf gas storage Electric service territory (#1 LDC in the U.S.) Natural gas service territory Hea
Slide 4: How We've Grown
How We’ve Grown . . . . We Have Delivered for a Decade TSR UTY – Philadelphia Utility Index Growth Peers – Group of 41 Electric Utilities 400% CMS +390% 350 300 250 200 Peers +184% 150 UTY +129% 100 S&P 500 +105% 50 0 -50 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 Data ended June 30, 201
Slide 5: What We Pay
What We Pay . . . . Dividend Increases Every Year Dividend Growth $ 1.35 7% 1.30 7% $1.24 $1.24 1.25 1.20 6% $1.16 Grow in line with earnings 1.15 6% $1.08 1.10 14% $1.02 1.05 1.00 $0.96 0.95 27% 0.90 $0.84 0.85 0.80 32% 0.75 0.70 $0.66 0.65 39% 0.60 0.55 $0.50 0.50 80% 0.45 0.40 $0.36 0.35 0.30 0.2
Slide 6: What We Do
What We Do . . . . #2 Largest Investor in Michigan Sustainable Renewable Pumped Storage Wind Energy Clean, Natural Gas Electric service territory Natural gas service territory Combined service territory Generating facility Headquarters . . . . leaving it better than we found it. 5
Slide 7: How We Plan
How We Plan . . . . Our Conservative Planning Sets Us Apart Risk Mitigation • Economy Plan conservatively; do well in good times and bad • Weather Offset adverse weather; reinvest good weather • CMS Mindset We work with everyone . . . . consistent, predictable performance. 6
Slide 8: We Reduce Costs
We Reduce Costs . . . . Industry Leader in Cost Performance 2006 2015 2018 Down 10% Down 10% $1.1 bil Peers up 42% $1.0 bil $0.9 bil Inflation Inflation ≈2% ≈2% Closed legacy benefit plans Shut down coal plants . . . . to provide more customer value. 7
Slide 9: Michigan's Growing Economy
Michigan’s Growing Economy . . . . Our Service Territory Outperforms Grand Rapids Michigan U.S July 2016 unemployment 2.9% 4.5% 4.9% “Michigan’s unemployment rate dips to lowest in 15 years…below the Grand Rapids ranked #3 in the national average!” nation for doing business! -- Crain’s Detroit Busin
Slide 10: Key Takeaways
Key Takeaways . . . . Utilities Offer Sound Investment, CMS Even Better! Investor Profile CMS Offers • Risk adverse Mostly regulated profile • Income-oriented Growing dividend with 62% payout of earnings a • Above average growth 6% (vs b a to 8% EPS growth 3% peer utilities) _____ a Adjusted E
Slide 11: Consistent Growth Through Recessions, Adverse Weather, and Policy Leadership
Consistent Growth Through . . . . Future Shines Bright 7% CAGR a EPS 6% to 8% 5% to 7% Dividend Recession Recession Weather 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