Cms Energy Corporation · NYSE:CMS
Cms Energy — Investor Presentation (February 2025)
25 slides from Cms Energy's investor presentation, February 2025
Slide 1: Investor Meetings February 2025
Investor Meetings February 2025
Slide 2: Forward-looking statements
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: CMS Energy Overview
CMS Energy Overview Corporate Structure Key Information CMS Energy 2024 Financial Statistics (NYSE: CMS) Based in Jackson, MI >8,300 Employees (44% unionized)a Consumers Energy NorthStar Clean Energy $7.5B Revenue b 2024 $998M Adjusted net income >95% regulated Avg. Rate Base 22 years Industry-leadi
Slide 4: Consumers Energy Positioned Well . . .
Consumers Energy Positioned Well . . . Service Territory Electric Gas Combined • Electric Utility 1.9M electric customers 9,853 MW of capacity • Gas Utility 1.8M gas customers >1,300 309 Bcf gas storage • Serving 6.8M Michigan residents MW a cumulative Planet Goals contracted load since • Exiting co
Slide 5: NorthStar Clean Energy Provides Flexible Solutions . . .
a NorthStar Clean Energy Provides Flexible Solutions . . . Renewable Platform • 368 MW of wind (OH, TX) • 64 MW of biomass (MI, NC) • 210 MW of solar (AR, MI, WI) Dearborn Industrial Generation (DIG) & Other • >1,000 MW in MI (including DIG & Peakers) • Upside: tightening capacity markets with futur
Slide 6: Near- and Long-Term Financial Objectives . . .
Near- and Long-Term Financial Objectives . . . 2025 Long-Term Plan Adjusted EPS guidance $3.54 – $3.60 +6% to +8% Toward the high end Toward the high end Dividend Payout Ratio ~60% ~60% over time Target credit ratings Solid Solid investment grade investment grade FFO/Debt target: Mid-teensa FFO/Debt
Slide 7: Investment Thesis
INVESTMENT THESIS
Slide 8: Investment Thesis . . .
Investment Thesis . . . Clean Energy Industry-leading net zero commitments Leader Strong Infrastructure Cash Flow & Renewal Balance Sheet Excellence through the Attractive & Constructive Top-tier regulatory jurisdictiona Diversified Legislation & Territory Regulation Affordable Prices Premium total
Slide 9: Infrastructure Renewal is Necessary . . .
Infrastructure Renewal is Necessary . . . 10-yr Electric Reliability Roadmap New Energy Legislation Includes up to 400 Provides capital opportunity to meet 60% miles of Renewable Portfolio Standard by 2035 and undergrounding and 20k pole replacements 100% Clean Energy Standard by 2040 per year 25 ye
Slide 10: Updated Customer Investment Plan . . .
Updated Customer Investment Plan . . . New Utility Investment Plan Rate Base Growth Non-Rate Base Earningsb Up $3B from prior plan ~$20M pre-tax for ~8½%/yr a $39.4B FCM by 2029 68% 26% Electric utility investment $26.2B ~$60M/yr pre-tax ’25 – ’29 for Energy $20B 32% Efficiency incentive 42% N
Slide 11: Long-Term Opportunities . . .
Long-Term Opportunities . . . Electric Distribution Electric Supply Long-term Plan/ Reliability Roadmap Renewable Energy Plan (REP) Integrated Resource Plan (IRP) Reference Filing 2025 – 2035 2025 – 2045 2027 – 2045+ Key • 20K poles replaced each year • 9,000 MW solar • >850 MW of battery storage In
Slide 12: Michigan’s Strong Regulatory Environment . . .
Michigan’s Strong Regulatory Environment . . . 2024 2025 Supportive Energy Policy Electric • Timely recovery of investments Forward-looking test Oct. 18th: By Mar. 31st: Q2: years/earn authorized Revised Expected Order File New ROEs $277Ma, 10.25% ROE U-21585 Rate Case U-21585 10-month rate case
Slide 13: Expansive Economic Development Efforts . . .
Expansive Economic Development Efforts . . . Economic Development (MW) Electric Gas Combined 2022 New Load 2023 New Load 2024 New Load ~9,000 additional opportunity Benteler Automotive Corning Inc. Battery component production Solar production facility $105M investment $900M investment Manufacturing
Slide 14: Needed Customer Investments . . .
Needed Customer Investments . . . Customer Investments Key Affordability Drivers Clean Energy Transformation CE Way cost savings (REP & IRP)a • ~$350M since 2020 Large episodic savings (PPAs/coal exit) • >$200M savings through 2025 Economic development Electric Natural Gas • >1,300 MW of new o
Slide 15: Strong Balance Sheet . . .
Strong Balance Sheet . . . Consumers Energy S&P Moody’s Fitch Key Strengths Senior Secured A A1 A+ Forward-looking recovery Constructive rate construct Commercial Paper A-2 P-2 F-2 Strong operating cash flow Outlook Stable Stable Stable generation CMS Energy Senior Unsecured BBB Baa2 BBB 100
Slide 16: 2025 Planned Financings . . .
2025 Planned Financings . . . Financings Existing Facilities Plan YTD a ($M) ($M) ~$1.8B of net liquidity Consumers Energy: $250M First Mortgage Bonds $1,125 -- (Nov-2025) CMS Energy: Senior Unsecured $1,270 -- Planned Equity Up to $500 -- $1,100M (Dec-2027) Retirements (incl. term loans): $550M Con
Slide 17: Industry-Leading Financial Performance . . .
Industry-Leading Financial Performance . . . Adjusted EPS +6% to +8% Dividend Weather Help Recession Recession Recession / Hurt Pandemic 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025+ Cold Mild Hot Warm Mild Cold Summer- Hot Hot Wa
Slide 18: Appendix
CMS EVERGY APPENDIX
Slide 19: Financial Results & Outlook . . .
Financial Results & Outlook . . . 2024 Full-Year Results Amount Commentary Delivered toward the Adjusted EPS $3.34 high end 2025 Full-Year Outlook Adjusted EPS Guidance $3.06 $3.54 – $3.12 $3.60 Toward the high end Annual Dividend Per Share (DPS) $2.17 Up 11¢ Long-Term Outlook Adjusted EPS Growth +6
Slide 20: DIG (750 MW) & Peakers (200 MW) . . .
DIG (750 MW) & Peakers (200 MW) . . . Pre-Tax Income Opportunities (M) $80 ~$75 70 ~$65 ~$60 60 50 $43 40 ~$30 30 20 10 0 Historic 2024 2026 -2029 Avg. 2026+ 2026+ Capacity Price ($kw-mon) ~$3.00 ~$3.25 ~$4.50 ~$7.50 ~$10.00 Capacity Available 0% 0% ~25% ~25% ~25% . . . supports the Plan with future
Slide 21: New Michigan Energy Legislation . . .
New Michigan Energy Legislation . . . Key Items Prior Law New Lawa Benefits • Renewable Portfolio Standard 60% by 2035 Maintains customer 15% by 2021 • Next Renewable Energy Plan (REP) filing in Michigan in MISO affordability (Nov. 2024) (50% by 2030) • Clean Energy Standard Ensures continued (inc
Slide 22: Endnotes
CMS EVERGY ENDNOTES
Slide 23: Presentation Endnotes
Presentation Endnotes Slide 3: aExcludes seasonal and contract workers bAdjusted, (non-GAAP) cDividend Policy: Payout Ratio of ~60% over time Slide 4: aNet zero methane emissions for our gas delivery system, net zero carbon emissions for our electric business (includes PPAs and MISO market purchases
Slide 24: GAAP Reconciliation
CMS Energy provides historical financial results on both a reported (GAAP) and adjusted (non-GAAP) basis and provides forward-looking guidance on an adjusted basis. During an oral presentation, references to “earnings” are on an adjusted basis. All references to net income refer to net income availa
Slide 25: Reconciliation of GAAP Net Income to Non-GAAP Adjusted Net Income
CMS ENERGY CORPORATION Reconciliation of GAAP Net Income to Non-GAAP Adjusted Net Income (Unaudited) In Millions, Except Per Share Amounts Three Months Ended Twelve Months Ended 12/31/24 12/31/23 12/31/24 12/31/23 Net Income Available to Common Stockholders $ 262 $ 306 $ 993 $ 877 Reconciling items: