Dte Energy Company · NYSE:DTE
Dte Energy — AGA Financial Forum 2023
28 slides from Dte Energy's conference presentation, May 21, 2023
Slide 1: AGA Financial Forum
AGA Financial Forum May 21-23, 2023
Slide 2: Safe harbor statement
Safe harbor statement The information contained herein is as of the date of this document. DTE Energy expressly disclaims any current intention to update any forward-looking statements contained in this document as a result of new information or future events or developments. Words such as “anticipa
Slide 3: Business Update, Financial Update, ESG, Appendix
Business Update Financial Update Environmental, Social & Governance (ESG) Appendix 3
Slide 4: Highly engaged team committed to delivering best-in-class results for customers, communities and investors
Highly engaged team committed to delivering best-in-class results for our customers, communities and investors Continuing best-in-class engagement, health and safety of our employees • Received Gallup Great Workplace Award for 11th consecutive year, achieving Operating EPS guidance midpoint top deci
Slide 5: Executing on significant customer-focused capital investment plan while maintaining affordability
Executing on significant customer-focused capital investment plan while maintaining affordability Investing in customer-focused initiatives… …while maintaining affordability Transitioning to cleaner generation ✓ Distinctive continuous improvement culture drives cost management Shifting generation fr
Slide 6: Increased customer-focused utility investment in 5-year plan supports 6% - 8% operating EPS growth
Increased customer-focused utility investment in 5-year plan supports 6% - 8% operating EPS1 growth through 2027 (billions) 5-year utility capital investment 95% of 5-year investment supports growth plan in utilities 2023 - 2027 $21.6 $18.1 $3.6 DTE Gas DTE Electric $3.1 $18 $18 DTE Electric $15 ~$2
Slide 7: DTE Electric: transformational investments in generation and distribution
DTE Electric: transformational investments in generation and distribution Significant progress on cleaner generation in 2023 DTE Electric investment • Placed Michigan’s largest wind park in service (billions) • Continued voluntary renewables program growth with new Toyota Motor North America contrac
Slide 8: Economic development in Michigan provides growth opportunities in DTE's service territory
Economic development in Michigan provides growth opportunities in DTE’s service territory ✓ General Motors is investing $4 billion to convert its Orion Township assembly plant to produce full-size electric pickup trucks, creating 2,300 jobs ✓ Our Next Energy is investing $1.6 billion in a new batter
Slide 9: Electric vehicle adoption drives investment and job growth, with increased load growth
Electric vehicle (EV) adoption drives investment and job growth, with increased load growth driving significant grid investment Top 10 states in announced EV investment 1 Michigan $16.6 billion DTE Electric load from vehicle electrification 2 (GWh) Tennessee $16.6 billion Georgia $15.2 billion 7,000
Slide 10: DTE Gas: replacing aging infrastructure to ensure reliability and transition to net zero
DTE Gas: replacing aging infrastructure to ensure reliability and transition to net zero1 emissions Significant progress on gas system renewal in 2023 DTE Gas investment • Completed 72 miles of main renewal in 1Q; targeting over 200 miles in 2023 (billions) • Completed final phase of major transmiss
Slide 11: DTE Vantage: strategic focus on decarbonization solutions for customers
DTE Vantage: strategic focus on decarbonization solutions for customers Strong project development in 2023 DTE Vantage operating earnings2 (millions) • Placed one RNG project and one custom energy solutions project in service $175 - $185 • Placing two RNG projects in service in 2H Capitalizing on a
Slide 12: Business Update, Financial Update, ESG, Appendix
Business Update Financial Update Environmental, Social & Governance (ESG) Appendix 12
Slide 13: Plans are in place to achieve 2023 operating EPS guidance midpoint
Plans are in place to achieve 2023 operating EPS 1 guidance midpoint, which provides 7% growth over 2022 original guidance midpoint (millions, except EPS) 2023 guidance DTE Electric $1,010 - $1,030 DTE Gas 262 - 272 DTE Vantage 115 - 125 Energy Trading 20 - 30 Corporate & Other (150) - (136) DTE Ene
Slide 14: Maintaining strong cash flow, balance sheet and credit profile
Maintaining strong cash flow, balance sheet and credit profile Continued balance sheet strength… …while providing a healthy dividend • Targeting equity issuances of $0 - $100 million annually • Increased 2023 annualized dividend 7.6% to $3.81 per share through 2025 • Over 100 consecutive years of pa
Slide 15: Business Update, Financial Update, ESG, Appendix
Business Update Financial Update Environmental, Social & Governance (ESG) Appendix 15
Slide 16: Environmental, social and governance efforts are key priorities
Environmental, social and governance efforts are key priorities; aspiring to be the best in the industry Award-winning commitment to ESG priorities Environment • Transitioning towards net zero emissions at both utilities • Accelerating transition to cleaner generation • Protecting our natural resour
Slide 17: MIGreenPower program continues significant growth
MIGreenPower program continues significant growth 1,100 • Allows customers to purchase up to 100% of electricity business customers needs generated from renewable sources • One of the largest voluntary renewable programs in the nation • Largest renewable energy purchase from a utility announced with
Slide 18: Natural Gas Balance program reducing GHG emissions
Natural Gas Balance program reducing GHG emissions 2021 program inception • Offering an affordable way to balance 25% to 100% of customers’ GHG emissions from an average home’s natural gas use • RNG will be sourced by transforming landfill emissions and wastewater treatment plant by-products into us
Slide 19: Progressing on EV initiatives
Progressing on EV initiatives Charging Forward Program 2019 • Promoting EV education, infrastructure and adoption program inception • Providing residential and commercial rebates, infrastructure support and fleet advisory services • Offering unique solutions such as home charger installation financi
Slide 20: Committed to Diversity, Equity and Inclusion; creating a safe and welcoming environment
Committed to Diversity, Equity and Inclusion (DEI); creating a safe and welcoming environment Employee groups create an inclusive environment where differences Health and safety of our people is a priority are celebrated and a sense of belonging exists for all employees • Multiple safety committees
Slide 21: Building on the momentum of the last decade, committed to Michigan investments and supplier diversity
Building on the momentum of the last decade, committed to Michigan investments and supplier diversity 2022 Michigan spend (millions) $2.5b invested in Michigan businesses in 2022 65,000 jobs created since 2010 $20 $900m invested with Detroit suppliers in 2022 $19 invested with suppliers owned by wom
Slide 22: Governance framework provides shareholder rights and enables sustainable value creation
Governance framework provides shareholder rights and enables sustainable value creation Best-in-class governance practices 1 7 • Lead Independent Director 90% 30% • All board committees are composed exclusively of independent gender or Directors independent ethnically diverse • Stock ownership guide
Slide 23: Executive management compensation plan is aligned with our stakeholder priorities
Executive management compensation plan is aligned with our stakeholder priorities Annual or long-term incentive metrics • Employee engagement Our team • Employee safety • Customer satisfaction Our customers • Customer complaints • System reliability • Customer satisfaction Our communities • Customer
Slide 24: Business Update, Financial Update, ESG, Appendix
Business Update Financial Update Environmental, Social & Governance (ESG) Appendix 24
Slide 25: IRP and rate case filing prioritize electric reliability with a focus on decarbonization and affordability
IRP and rate case filing prioritize electric reliability with a focus on decarbonization and affordability • IRP filing (U-21193) prioritizes electric reliability with a focus on decarbonization and affordability − Outlines generation transformation to achieve carbon reduction of 85% in 2035, 90% by
Slide 26: IRP accelerates transition to cleaner energy future while ensuring reliability
IRP accelerates transition to cleaner energy future while ensuring reliability First 5 years (2023 - 2027) Generation mix1 • Retire one unit at Belle River in 2025 and remaining unit in 2026 (MWh %) − Convert Belle River to 1,300 MW natural gas peaking resource 3% 3% 3% 5% 6% 6% in 2025 - 2026 2% 1%
Slide 27: 2023 cash flow and capital expenditures guidance
2023 cash flow and capital expenditures guidance Cash flow Capital expenditures (billions) (millions) 2023 2023 guidance guidance Cash from operations1 $3.2 DTE Electric Capital expenditures (4.2) Base infrastructure $1,200 Free cash flow ($1.0) New generation 500 Dividends (0.8) Distribution infras
Slide 28: Reconciliation of reported to operating earnings (non-GAAP)
Reconciliation of reported to operating earnings (non-GAAP) Use of Operating Earnings Information – Operating earnings exclude non-recurring items, certain mark-to-market adjustments and discontinued operations. DTE Energy management believes that operating earnings provide a meaningful representati