Cms Energy Corporation · NYSE:CMS
Cms Energy — Investor Presentation (November 2015)
17 slides from Cms Energy's investor presentation, Nov 30, 2015
Slide 1: Investor Meetings November 30 – December 1, 2015
Investor Meetings November 30 – December 1, 2015 Ludington Pumped Storage Ray Compressor Station Cross Winds Energy Park Fourth largest in the world #1 LDC in gas storage #2 in renewable sales in the Great Lakes area
Slide 2: Forward-looking statements and non-GAAP disclaimer
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: We Cross The Finish Line Together
We Cross The Finish Line Together
Slide 4: Looking Back -- CMS Energy Consistent Growth
Looking Back -- CMS Energy Consistent Growth . . . . 7% CAGR a EPS Weather Recession Recession Help Hurt 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 We work Cold Mild Hot Warm Mild Cold Summer- Hot Hot Warm Mild Polar Cold with anyone winter summer summer winter summer winter “l
Slide 5: Looking Ahead -- Simple, Perhaps Unique Model
Looking Ahead -- Simple, Perhaps Unique Model . . . . 5-Year Upside Plan Opportunity Capital investment (reliability, costs, enviro mandates) 5% - 7% 6% - 8% - O&M cost reductions 2 pts Short-term - Sales growth ½ ROA return - No “block” equity dilution 1 and/or - Surcharges and other 1½ Long-term I
Slide 6: We Earn Our Customers' Business 24/7
We Earn Our Customers’ Business 24/7
Slide 7: O&M Cost Performance
O&M Cost Performance . . . . Actual Cost Reduction Future Cost Savings (2014 over 2006) 2014 2014 & 2015 2018 (mils) (mils) • Attrition $ - 35 $ - 75 • Productivity (Coal Gas) - 35 - 50 • “Pole Top” Hardening - 30 - 30 • Smart Meters - 5 - 25 Peer Average >5% • Eliminate Waste (UA’s) - 15 - 20 • Mor
Slide 8: Looking Ahead -- Michigan's Structural Changes
Looking Ahead -- Michigan’s Structural Changes . . . . Changes Announcements Impact Brembo MW Auto 80 Fair Labor • Produce brake rotor castings • 254 new jobs; $115 mil • 24 MW Food 15 Tax Policy Arauco Manufacturing 25 • Largest particleboard press in North America Metal 20 • 250 new jobs; $325
Slide 9: We Leave It Better Than We Found It
We Leave It Better Than We Found It
Slide 10: Looking Back -- Sustainable Performance
Looking Back -- Sustainable Performance . . . . Excellent Operations Total Shareowner Return b Improvement (since 2006) Breakthrough Performance 253% Safety Incidents DOWN 80% Outage Minutes DOWN 39 Productivity UP 56 Cleaner Generation Portfolio 136% Coal REDUCED 40% S&P 105% UTY 95% Renewables ADD
Slide 11: Looking Ahead -- CMS Energy Long-Term Upside Opportunities
Looking Ahead -- CMS Energy . . . . 7% CAGR Long-Term Upside Opportunities PPAs Gas Expire Infra. More Renewables Replace Capacity Future LAW +5% to +7% a Plan Ops EPS • Capex (bils) $15.5 $20 NEW • O&M (10)% (15)% • Sales Growth ½ 1 Recession Recession b New Energy Law Fair Choice IRP Renewables/En
Slide 12: GAAP Reconciliation
GAAP Reconciliation
Slide 13: Earnings Per Share By Year GAAP Reconciliation
CMS ENERGY CORPORATION Earnings Per Share By Year GAAP Reconciliation (Unaudited) 2008 2009 2010 2011 2012 2013 2014 Reported earnings per share - GAAP $1.20 $0.91 $1.28 $1.58 $1.42 $1.66 $1.74 After-tax items: Electric and gas utility 0.05 0.33 0.03 - 0.17 - - Enterprises (0.02) 0.09 (0.03) (0.11)
Slide 14: Consumers Energy 2015 Forecasted Cash Flow GAAP Reconciliation
Consumers Energy 2015 Forecasted Cash Flow GAAP Reconciliation (in millions) (unaudited) Reclassifications From Sources and Uses to Statement of Cash Flows Interest/ Capital Presentation Sources and Uses Tax Other Financing Other Working Lease Pymts Securitization Common Consolidated Statements of C
Slide 15: CMS Energy Parent 2015 Forecasted Cash Flow GAAP Reconciliation
CMS Energy Parent 2015 Forecasted Cash Flow GAAP Reconciliation (in millions) (unaudited) Reclassifications From Sources and Uses to Statement of Cash Flows Presentation Sources and Uses Non Equity Consolidated Statements of Cash Flows non-GAAP Uses GAAP Description Amount as Operating Other Amount
Slide 16: Consolidated CMS Energy 2015 Forecasted Cash Flow
Consolidated CMS Energy 2015 Forecasted Consolidation of Consumers Energy and CMS Energy Parent Statements of Cash Flow (in millions) (unaudited) Eliminations/Reclassifications/Consolidation to Arrive at the Consolidated Statement of Cash Flows Statements of Cash Flows Other Consumers Equity Consume
Slide 17: Reconciliation of Gross Operating Cash Flow to GAAP Operating Activities
CMS Energy Reconciliation of Gross Operating Cash Flow to GAAP Operating Activities (unaudited) (mils) 2014 2015 2016 2017 2018 2019 2020 Consumers Operating Income + Depreciation & Amortization $ 1,813 $ 1,930 $ 2,027 $ 2,145 $ 2,266 $ 2,401 $ 2,515 Enterprises Project Cash Flows 20 20 40 58 62 67