Cms Energy Corporation · NYSE:CMS
Cms Energy — Midwest Energy Conference, Kohler, Cross Winds Energy Park (August 2013)
29 slides from Cms Energy's conference presentation, Aug 14, 2013
Slide 1: Consumers Energy Smart Energy Program conference presentation
Exhibit 99.1 Midwest August Cross Gas Combined Winds 15, Utilities 2013 Energy Cycle Conference—Kohler Park PlantConsumers Smart Energy Program
Slide 2: Forward-looking statements and non-GAAP information
This relevant from STATEMENTS INFORMATION” and could of The comparable CMS adjusted regulatory able 1 the Consumers presentation to presentation time Energy cause information estimate legal basis. to items GAAP CMS time provides decisions. Management Energy’s AND the from also is in Energy’s present
Slide 3: Key Takeaways
Key EPS 7% $1.70 +12% +11% +7% Actual a2003 5%-7% Growth Dividend Gross Ten-year Transparent Constructive On .Predictable 2 .Adjusted . track .+7% Takeaways adistinguish 2004 Yield operating +4% Growth EPS real for 5% investment growth EPS 2005 +12% =~4% growth 11th +7% regulatory 7% 8%(non-GAAP) ca
Slide 4: CMS Summer Adjusted EPS (non-GAAP)
CMSSummer Adjusted (non-GAAP) Hot +13¢ Guidance $1.55 Warm delivering -13¢ 3 Managed Winter EPS $1.52 theFirst high its to Work Half $1.55 side Second of inperformance 2012Half . . . . for customers and owners.
Slide 5: CMS Adjusted EPS (non-GAAP) First Half to Guidance
CMS Adjusted (non-GAAP) Better Health Sales Financing Net 4¢ Reinvestment 2 1 7¢ Electric .+7¢ Guidance 4 .Reliability Gas .Total +14¢ .Benefits by Manages case Than care reinvesting Weather Reinvestment Reliability EPS &deferred Plan &other First its other Work Half cost complete 35 14¢ Second savi
Slide 6: Business Model delivers consistent financial performance
Business 7% EPSa $ b $1.26 $1.08 $0.84 Needed Customer Ten-year Regulatory Consistent Self-funded EPS Operating 2003 Adjusted $1.25 delivers 5 1.21 $1.55 &2004 $0.96 $0.81 excluding dividend investment consistent visibility Model EPS 5% driven cash high 2005 support $0.90 $1.45 (non-GAAP) flow growt
Slide 7: Michigan's New Public Service Commission
Michigan’s New Previous Provided Michigan Environmental Public BS—Michigan Education MPA—University Sally Greg Term strong 6 Commissioner White Talberg Ends: law Sector Utility Experience support research Public Department on Constructive July (I)(I) Consultants Commission the Quality State 2, Servi
Slide 8: Cost Reductions Trend
Trend Percent -21% Inflation P 0 Accelerated -9% New Reductions -6% 2006 -25% -15% Lines accelerating; 7 rior Plan Plan 2007 Cost smoothed ofChange O&M Reductions 2008 Cost reducing Cost 25% for 2009 illustrative Savings 2010 risk. 2011 . .purposes. . .2012 2013 2014 2015
Slide 9: Cost Control and Productivity Examples
Utilities Strong – Average •7% 2% -2%Cost Amount Western SAP Future Control Customer Reinvested •-6% -6% O&M Inflation 40 Classic -1% (est. Avg. coal .Annual .10 •$250 Focus .Past Consumers -0.5%2% 7plans annual Productivity Benefit Consumers .average) (annual Change Workforce mothballed 30 Smart av
Slide 10: Cost Reductions and Cross Winds Benefits
Strong Average 2006-2012 -8% Utilities Avg. 7% Examples Classic Future(mils) Productivity Benefit Consumers •Additional Tax Cross Low Annual has 9 Retiree been benefits cost Winds® Customer 7plans Reductions O&M enhanced health mothballed financing ofcost 2012 Smart (COR) 10 Cost 30(PTC) Annual cont
Slide 11: New Gas Cross Winds Benefits Fund Rate Case Avoidance
New Gas ?$100 $49 Cross Tax/Other Benefits $0 a2013 fully 10Until $0 Tax Rate Cost fund 2014 Winds? Benefits 2015 Case elimination Savings 2014 test Avoideda year of Electric gas and electric Rate Case cases! Avoideda
Slide 12: Regulatory Filings
Regulatory 2013 File GAS Case Base aROE 2014 Air Tax Securitization Avoid 10.3% 5%—7% simplified 11Includes Permit Accounting CON rate Ratesa ELECTRIC 10.3% 2015 10.3% annual 5%—7% to surcharges approved 2016 Filings EPS benefit filing case Request Avoid 5%—7% 5% September customers. July On -5% fil
Slide 13: Enhanced Rate Case Strategy
Enhanced Rate New Prior ROE Lowers Customer Investment Helps (Free O&M EPS, Growth allows 12 case OCF Subject 700 costs CMSfilings MW base Near-Term &(2013-17) (2013-17) to dividend torate GCC) deliver review Annual increases Strategy $7 -1% growth even 10.3% Avoid billion -2% more <5%—7% into until
Slide 14: Michigan Economy Performance
Michigan Gross WA MT 8.1 8.2 SD OR 13.8 2.1 MI (3.5) 11.0 7.4 NV UT 2.9 12.3 4.3 5.0 0.7 GA TX 3.2 13.0 HI FL U.S. Lowest Source: among 13 AK NY WY 31.0 ME 7.9 KS KY 8.4 MS 11% CO LA WI 7.6 RI ND 5th 6.6 VT 7.3 4.6 Total NE Domestic 5.9 3.6 the IL NC 2.4 AL 5.0 8.2 VA 2.7 quintile 5.9 U.S. 5.9 Best
Slide 15: Michigan Employment Recovery
Central Employment 10-Year UP 980 Thousands Statewide 955 50,000 930 Alticor 905 Dieomatic 2003 Source: employment 14 7% Jobs—21,600 JR Pulverdryer 2005 jobs Automation since Magna West http://www.michiganadvantage.org/Projects/ History Numbers Dart 2007 has Sep-09 Michigan New Undercar Container 20
Slide 16: Ten-Year Clean and Reliable Capital Plan
Ten-Year Clean $3 Environmental Renewable Gas .in 15 Billion customer conversions Power Capital $2 energy projects Capacity Billion NewPipeline Investment Ludington gas $3.5 (none Reliability generation replacements Billion “bet Plan Pumped the $4 Infrastructure Consumers Company”) Billion Storage E
Slide 17: Capital Investment Plan
Capital 2013 Faster < Pole More Customer at >4% 16 $7 sustainable replacements Billion –gas Smart 2017 Investment generation base Pipe Plan Energy and rates replacements Opportunity affordable Billion Plan <2% pace,Level $10in low-risk, “bite size” projects.
Slide 18: Capacity Needed to Meet Reserve Requirements
Capacity Installed MW 8,500 9,500 7,500 2013 4,500 to 17 meet New 2014 Market 6,500 reserve Capacity Needed Gas 2015 5,500 Purchases Plant requirements. 2016 Excl Peak 2017 Classic Demand 20187 Classic with Reserve 7 Margin 10,500
Slide 19: New Gas Plant Permit and CON Timeline
NewPermit CON Expected Reliability Capacity 2012 Air Submitted Certificate Filed Necessity? Award Investment progress 18 Gas 2013 7/12 filed Major continues needed Plant decision Approval Approved July of to 2014 Project inbe (mils) Full Michigan CON 12th maintained 2015 to$6 Notice within as suppor
Slide 20: Near-Term Catalysts
Near-Term Catalysts 1. 2. 3. 4. 5. 6. 7. progress 19 Constructive Rate Cost Securitization Gas Capital Self-funded plant cases ofcontinues, Progress investment removal Catalysts CON Avoided growth regulation ToCON Tax more be10-year electric NOLs filed order filed opportunities New this and anticipa
Slide 21: Key Takeaways
Key EPS 7% $1.70 +12% +11% +7% Actual a2003 5%-7% Growth Dividend Gross Ten-year Transparent Constructive On Predictable distinguish 20 Adjusted track +7% Takeaways a2004 Yield operating +4% Growth EPS real for 5% investment growth EPS 2005 CMS. +12% =~4% growth 11th +7% regulatory 7% 8%(non-GAAP) c
Slide 22: Q & A Session
Q & A Session Upcoming Investor Day—Grand Event Rapids, Michigan October 24
Slide 23: Appendix
Appendix
Slide 24: Equity Needs and Tax Credits
EPS Net $0.8 $0.4 $0.2 2011 Gross a“Block” 23 self-funded. Maintain NOLs Growth $0.7 $0.4 $0.1 2012 NOLs Equity $0.7 and 2013E existing (bils) Tax a $0 2014E $1.5 Credits DRIP $ 0$$2015E 1.2 and 0 $$0continuous 1.1 $2016E 0$$0.3 0 $2017E $0equity 0.2 $ 0program $0
Slide 25: Operating Cash Flow and Investment
Operating Amount Gross Base 1.0 0.5 C 0 2011 (0.5) aNOLs 24 ash Non-GAAP Investment Investment 2012 flow operating & (bils) Credits Cash before 2013E$2.5 choices Flow cash $0.8 dividend 2014E flowa Growth $0.72015E $0.7 $2.2$0.4 2016E up $0.1 $0.4 2017E billion $0.2 $0.1 per year 2.0 $1.8 $1.7 $1.6
Slide 26: Liquidity and Financing Activities
Liquidity $2.0 Availability 5-year AR Recent 537 Cash CMS $250 $20 Consumers $425 .$325 25 . . .Facility—2014 million Billion strong million Energy revolver—2017 Financing (asand Energy Continuous CMS of Senior FMB, conservative. 6/30/13) Activities Energy 250 3.95% 3.375% Notes, 498 150 Equity 5-ye
Slide 27: GAAP Reconciliation
GAAP Reconciliation
Slide 28: Earnings Per Share By Year GAAP Reconciliation
CMS ENERGY CORPORATION Earnings Per Share By Year GAAP Reconciliation (Unaudited) 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Reported earnings (loss) per share - GAAP ($ 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 (
Slide 29: Reconciliation of Gross Operating Cash Flow to GAAP
CMS Energy Reconciliation of Gross Operating Cash Flow to GAAP Operating Activities (unaudited) (mils) 2011 2012 2013 2014 2015 2016 2017 Consumers Operating Income + Depreciation & Amortization $1,527 $1,635 $1,735 $1,821 $1,948 $2,011 $2,113 Enterprises Project Cash Flows 24 17 20 29 37 44 56 Gros
CMS Energy — Midwest Energy Conference, Kohler, Cross Winds Energy Park (August 2013) on 6ix