Cms Energy Corporation · NYSE:CMS
Cms Energy — Investor Presentation (July 2013)
23 slides from Cms Energy's investor presentation, Jul 31, 2013
Slide 1: CMS Energy Combined Investor Meeting, July 31, 2013
Exhibit 99.1 CMSCombined Investor July Cross Gas 31, ENERGY Winds 2013 Meeting Energy CyclePark PlantConsumers Smart Energy Program
Slide 2: Forward-Looking Statements and Information
This relevant Energy’s “FORWARD-LOOKING as by Energy The comparable CMS adjusted regulatory able 1 updated reference presentation to presentation Energy estimate undertake legal basis. Securities items inGAAP and provides subsequent decisions. Management the from discuss also is nomeasure factors im
Slide 3: Recent Highlights
Recent Constructive Settled O&M Eliminate Provide Reduce Ten-year, New CON .Michigan 2 . . . 5% gas decision cost Highlights first investor for to plant $15 GDP need reduction 7% improved electric regulatory billion by air long-term for growth risk mid-April permit .base .rate .acceleration capex cu
Slide 4: Michigan's New Public Service Commission
Michigan’s New Previous Provided John Michigan Environmental Public BS Education MPA Sally Greg Term University 3 - Michigan Commissioner Quackenbush White -Talberg Ends: Sector Utility of Experience support research Texas-Austin Public Department Texas Constructive July (I)(I) Consultants Commissio
Slide 5: Constructive Settled Electric Rate Case
Constructive Settled Electric 10.3% Eliminates .Approved 4 . . . provides return - $89 full rate million Regulation on improvements deployment skewing equity in (unchanged) 8.months . of . .for Consumers customersSmart and investors. Energy program and opt-out fee
Slide 6: Regulatory File and Rate Case Schedule
Regulatory File ELECTRIC New Avoid Tax CON Securitization Base EPS ROE 5% 2013 a.10.3% 5 .Includes . .-Case annual 5% simplif Michigan 7% Ratesa 10.3% 2014 GAS- 7% surcharges 2015 File Filings rate 10.3% implified No5%Energy annual case change 2016 - .7% 10.3% . .to .rate Policy 5% <benefit Inflatio
Slide 7: Accelerated O&M Cost Reduction Plan
Trend Percent C 25% Prior -9% -21% New -6% Accelerated 2 0 .-15% Lines 6 .006 ost . . accelerating; Reductions Plan Plan 2007 -25% smoothed ofChange O&M 2008 CostCost for 2009 Inflation Reductions reducing illustrative Savings 2010 risk. 2011 . .purposes. . .2012 2013 2014 2015
Slide 8: Strong Past Cost Performance and Future Savings
Strong Past Average 7% Inflation Reinvested -2% Classic Productivity Benefit Total Annual 2012 7 . . Peers .Future (annual 2013E .Base Future holds Customer 7Average plans O&M 2% mothballed Western -6% (est. 2013-2017E Savings average) down 50 10 Peers 30Annual -1% Consumers annual -6% Focus coal ra
Slide 9: Annual Cost Reductions and Benefits
Strong Average 7% 2% -2% -8% .Annual 8 . . .Classic Peers Reinvested -6% hasCustomer Average O&M been Tax Annual 7 mothballed benefits enhanced Annual 6% 2012 Focus Future Consumers 2013E (COR) Change –and (mils) Productivity Cost accelerated. 2013-2017E 70Control $20 Examples -0.5% Cross Inflation
Slide 10: Avoided Gas and Electric Base Rate Increases
New Electric Gas $100 $49 Cross 2014 Tax/Other 2013 .$0 9 . . .Benefits Base fund Cost Benefits 2014 Winds® Base Rate elimination Savings Tax Rate Increase Increase . . .of . Avoided gasAvoided and electric base rate increases!
Slide 11: Ten-Year Capital Investment Plan
Ten-Year Clean $3 $3.5 Reliability $2 Capacity $4 Infrastructure New Renewable .Gas 10 . .Billion . conversions Billion in gas Power customer generation Capital energyPipeline projects Investment Ludington Environmental (none replacements Plan Pumped “bet . .Consumers .the . Storage Electric Company
Slide 12: Capital Investment and Major Projects
Capital Major 8 Compliance $8.0 Projects Reliability $6.5 <2% .Campbell 11 Investment 0 Amount . . . drives $7.3 Gas-Fired <2% EPS Capital Increased(bils) Generating Gas & Plan Capacity Investment Karn/Weadock . .flow Transmission Plant and capacity cash . .Environmental Consumers Plant, Cross <$7.0
Slide 13: New Gas Plant Capacity Needed
Capacity Installed MW New 8,500 7,500 10,500 9,500 2013 4,500 6,500 5,500 .Purchases 12 . . . to Gas 2014 Market meet Capacity Needed Plant 2015 reserve Peak 2016 . Excl . .requirements. Demand . 2017 Classic 2018 with 7 Classic Reserve7 Margin
Slide 14: New CON Expected: Gas Plant Approvals
New CON Expected Reliability Air Submitted Capacity Certificate Full Project Commercial Award Investment 2012 .13 . . .Permit Notice progress Gas 2013 filed Major needed Plant decision Approved July of to 2014 in (mils) toOperation be Necessity Contracts continues Michigan Proceed CON 12th maintaine
Slide 15: Michigan Gross Domestic Product Performance
Michigan Gross 8.1 WA NE 2.9 8.7 5.0 6.9 .HI 14 Source: . . AK MT UT 5.9 .FL 7.4 among Domestic GA MD 8.7 8.2 1.2 6.7 U.S. Economy AZ 5.7 IA 3.6 ND 7.5 the Department 6.6 7.6 4U.S. DE 31.0 best Product 2WI Highest NM1.4 Total Performance in MN5.9 the NJ CO–5th of IL =2010 nation. 3.1 quintile 6.2 6.
Slide 16: Michigan Manufacturing and Job Creation
Manufacturing Dec-09 Michigan Comerica 140 31 80 2008 15. 38532009 Other Data: Source: 5258 thru .National .Washington Jan-08states: Economy Economic Bank .88 2010 continues Mar-13 Indiana Job thruCA 2011 Creation up .(thousands Index .Wisconsin Texas to 2012 .47% .improve. Association May-13, 2013
Slide 17: Electric Industrial Sales vs. Peers
Electric Industrial 10% 2%1% -4%-6%-2%-3%-2%7% Consumersvs -9%2008 16. ab 18% 1%b.5%b .Sales Weather .2009 ExcludingTotal 4% .normalized steady, Peers Recovery 4%b one2010 2%-1%0%2%0%-1%2.5% stronger 6% 2011 companycU.S. a-3% .2012 .than WithoutUtilities . 1% with . Economic 2013E otherConsumers E.O
Slide 18: Key Takeaways: EPS and Dividend Growth
Key EPS $1.70 +12%+8%+7%% Dividend Gross +7% up 11% Predictable climate 2003 On year .financial a17 .Adjusted .$0.1 track . Takeaways of adistinguish Target +12% 2004 7%5% operating Growth+7% consistent, billion for performance growth EPS 2005 Actual +4% 6%—8% 11th Growth• per (non-GAAP) .cash CMS 2
Slide 19: Appendix
Appendix
Slide 20: CMS Adjusted EPS First Half 2013
CMS Adjusted First +13¢ (non-GAAP) Hot $1.52 Guidance .$1.55 19 -13¢ . . .Summer delivering Half Managed Warm to EPS Second Winter the itsHalf Work high side in 2012 of performance .... for customers and owners.
Slide 21: CMS Adjusted EPS First Half Drivers
CMS Adjusted First (non-GAAP) Better +14¢ Sales Health Reinvestment Financing Net Reliability Total Electric +7¢ Gas .Guidance 20 . . .Benefits Weather case by Half Reinvestment 4¢ Manages Than care reinvesting Weather deferred EPS Second & complete &2Plan 7¢ other other its Half 3Work 15cost 14¢ 6¢
Slide 22: GAAP Reconciliation
GAAP Reconciliation
Slide 23: Earnings Per Share By Year GAAP Reconciliation
CMS ENERGY CORPORATION Earnings Per Share By Year GAAP Reconciliation (Unaudited) 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 Reported earnings (loss) per share - GAAP ($ 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 (