Cms Energy Corporation · NYSE:CMS
Cms Energy — Merger or Acquisition (June 2021)
14 slides from Cms Energy's merger presentation, Jun 8, 2021
Slide 1: Strategic Sale of EnerBank
Strategic Sale of EnerBank June 8, 2021
Slide 2: Enter “so what” if necessary – Century Gothic, Bold, Size 18 or smaller
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: Leading a World Class Energy Company
Garrick Rochow President and CEO Leading a World Class Energy Company 3
Slide 4: Transaction Overview
Transaction Overview Transaction: Sale of EnerBank Buyer: Regions Bank, a subsidiary of Regions Financial Corporation (NYSE: RF) Transaction Value: $960 MM for 100% stake • EnerBank will merge with Regions Bank; Regions Bank will assume EnerBank’s assets and liabilities, including deposits a • (3.0x
Slide 5: Compelling Strategic Rationale
Compelling Strategic Rationale . . . a • Exit from non-core business at attractive valuation (3.0x book equity ) b • Median bank trading valuations of ~1.9x • Funds key utility initiatives (including Clean Energy Transformation) c • >7% rate base growth in current capital plan • Reduces future equit
Slide 6: Revised 2021 Guidance
Revised 2021 Guidance . . . Original Revised Adjusted EPS Adjusted EPS Utility $3.03 – $3.07 $3.03 – $3.07 Enterprises 0.12 – 0.13 0.12 – 0.13 EnerBank 0.20 – 0.22 Disc. Ops Parent and Other (0.52) – (0.55) (0.52) – (0.55) Continuing Operations $2.83 – $2.87 $2.61 – $2.65 Discontinued Operations ––
Slide 7: Maintains Track Record of Continued Growth After Sale
Maintains Track Record of . . . Continued Growth After Sale Near-term Financial Targets Adjusted EPS Adjusted EPS Growth Growth (2022 – 2025) of >7% 6% to 8% 2021 $1.74 Dividend: (No Change) Maintain ~60% Target Dividend Adjusted EPS a $2.83 – $2.87 $2.85 – $2.87 (LT Growth in-line (Consolidated EPS
Slide 8: Non-Core Business Sale Funds Utility Capital Deployment
Non-Core Business Sale . . . Customer Investment Plan Upside Opportunities Clean Energy Generation Electric Gas • Electric distribution reliability ~$13¼ Bn ~$1+ Bn upside 18% • Grid modernization 42% • Gas distribution and safety • Clean energy generation 40% Delivers rate base '21-'25 Future Capex
Slide 9: A Simple Investment Thesis
A Simple Investment Thesis . . . Industry-leading clean energy commitment Net Zero Carbon (2040) & Net Zero Methane (2030)a Clean Energy Leader Diversified Service Infrastructure Excellence through the Territory Renewal Top-tier regulatory jurisdictionb Strong Cash Flow Constructive & Balance Sheet
Slide 10: Q&A Thank You
CMS ENERGY > Q&A Thank You
Slide 11: Endnotes
CMS ENERGY > Endnotes
Slide 12: Presentation Endnotes (pg 1)
Presentation Endnotes (pg 1) a Slide 4: $318 MM book equity value as of 3/31/2021 a b Slide 5: $318 MM book equity value as of 3/31/2021 Based on median price / tangible book value multiple for banks in the KBW Regional Banking Index c as of 04-June-21 Assumes ~$21½ Bn rate base in 2021, $28 Bn in 2
Slide 13: GAAP Reconciliation
CMS ENERGY > GAAP Reconciliation
Slide 14: Earnings Per Share By Year GAAP Reconciliation
CMS ENERGY CORPORATION Earnings Per Share By Year GAAP Reconciliation (Unaudited) GAAP Average 2016 - 2020 2016 2017 2018 2019 2020 Growth Reported earnings (loss) per share - GAAP $1.98 $1.64 $2.32 $2.39 $2.64 9.4% Pretax items: Electric and gas utility 0.04 - - 0.02 0.08 Tax impact (0.01) 0.12 (a)