Slide 1: 2nd Quarter 2015 Earnings Conference Call
July 24, 2015 2nd Quarter 2015 Earnings Conference Call EXHIBIT 99.3
Slide 2: Safe Harbor Statement
Safe Harbor Statement The information contained herein is as of the date of this presentation. Many factors may impact forward-looking statements including, but not limited to, the following: impact of regulation by the EPA, FERC, MPSC, NRC and CFTC as well as other applicable governmental proceedin
Slide 3: Participants
• Peter Oleksiak – Senior Vice President and CFO • Jeff Jewell – Vice President and Controller • Mark Rolling – Vice President and Treasurer • Anastasia Minor – Executive Director, Investor Relations Participants 3
Slide 4: Agenda: Overview, Earnings Results, Cash Flow and Balance Sheet, Summary
• Overview • Second Quarter 2015 Earnings Results • Cash Flow and Balance Sheet Metrics • Summary 4
Slide 5: Our business strategy is fundamental to how we create value for our investors
Our business strategy is fundamental to how we create value for our investors 5 5% - 6% Annual EPS Growth Attractive Dividend Strong Balance Sheet Utility growth plan driven by infrastructure investments Strategic and transparent growth opportunities in non-utility businesses provide diversity i
Slide 6: We continue to make progress on many fronts
We continue to make progress on many fronts 2015 operating EPS guidance increase Dividend per share increase Michigan energy policy 2015 utility rate proceedings ‒ Self implementation of electric general rates ‒ Electric business cost of service rate order Non-utility projects ‒ Millennium upda
Slide 7: Economic indicators continue to improve in Michigan and the City of Detroit
Economic indicators continue to improve in Michigan and the City of Detroit 7 Detroit Metro #8 in number of new or expansion projects* Lowest Michigan unemployment since 2001 #7 most competitive state for job creation* Michigan has most new manufacturing jobs since 2009** * Source: Site Selection ma
Slide 8: Governor Snyder appoints new commissioner to Michigan Public Service Commission
Governor Snyder appoints new commissioner to Michigan Public Service Commission 8 Sally Talberg Commissioner Appointed: 7/3/13 Term Ends: 7/2/19 Norm Saari Commissioner Appointed: 8/2/15 Term Ends: 7/2/21 Source: State of Michigan website - www.michigan.gov/ • Norm Saari appointed to a six year term
Slide 9: Michigan leaders are working toward a constructive energy policy
Michigan leaders are working toward a constructive energy policy 9 Governor Rick Snyder Representative Aric Nesbitt Proposing... • Fully regulated market • Long-term, comprehensive generation plan • 10 month rate case completion Proposing... • 10% ROA cap with one-time election and capacity requirem
Slide 10: We are raising our 2015 operating EPS guidance to a midpoint of $4.72 per share
* Reconciliation to GAAP reported earnings included in the appendix (dollars per share) We are raising our 2015 operating EPS* guidance to a midpoint of $4.72 per share $3.33 $3.64 $3.75 $3.94 $4.09 $4.60 $2.12 $2.24 $2.35 $2.48 $2.62 $2.76 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Oper
Slide 11: We are increasing our 2015 operating earnings guidance due to strong first half performance
We are increasing our 2015 operating earnings* guidance due to strong performance in the first half of the year (millions, except EPS) 11 * Reconciliation to GAAP reported earnings included in the appendix ** Total DTE Energy excluding Energy Trading 2015 Prior Guidance 2015 Revised Guidance 2015 YT
Slide 12: Agenda: Second Quarter 2015 Earnings Results
• Overview • Second Quarter 2015 Earnings Results • Cash Flow and Balance Sheet Metrics • Summary 12
Slide 13: DTE Energy Second Quarter 2015 Operating Earnings Variance
13 DTE Energy Second Quarter 2015 Operating Earnings Variance 2Q 2014 2Q 2015 Change DTE Electric 129$ 111$ (18)$ DTE Gas (4) (7) (3) Gas Storage & Pipelines 18 25 7 Power & Industrial Projects 13 18 5 Corporate & Other (18) (13) 5 Growth segments** 138$ 134$ (4)$ Growth segments operating EPS 0.78$
Slide 14: Strength of our energy efficiency programs offsets economic sales growth
Strength of our energy efficiency programs offsets economic sales growth 14 Total Service Area Electric Sales* * Temperature normalized sales 1H 2014 Underlying Economic Growth Energy Efficiency 1H 2015 0.4% (1.1%) • Population and economic growth offset by temporary industrial plant idling resulted
Slide 15: Agenda: Cash Flow and Balance Sheet Metrics
• Overview • Second Quarter 2015 Earnings Results • Cash Flow and Balance Sheet Metrics • Summary 15
Slide 16: YTD 2015 Cash Flow and Capital Expenditures
YTD 2015 Cash Flow and Capital Expenditures (billions) 16 Capital Expenditures Summary Cash Flow Summary (millions) YTD YTD 2014 2015 Cash From Operations* $1.1 $1.2 Capital Spending (1.1) (1.2) Free Cash Flow $0.0 $0.0 Asset Sales & Other - 0.1 Dividends (0.2) (0.2) Net Cash ($0.2) ($0.1) Debt Fina
Slide 17: Strong balance sheet remains a key priority and supports growth
Leverage* 49% 51% 23% 25% Strong balance sheet remains a key priority and supports growth * Debt excludes securitization, a portion of DTE Gas’ short-term debt, and considers 50% of the Junior Subordinated Notes as equity Funds from Operations** / Debt* Target 50% - 53% Target 20% - 22% 5 ** Funds f
Slide 18: Agenda: Summary
• Overview • Second Quarter 2015 Earnings Results • Cash Flow and Balance Sheet Metrics • Summary 18
Slide 19: Summary
Summary * Reconciliation to GAAP reported earnings included in the appendix 19 • We are confident in this year’s performance and are increasing our 2015 operating EPS* guidance midpoint to $4.66 for our growth segments and $4.72 for DTE Energy • We increased our annual dividend 16 cents to $2.92 per
Slide 20: Contact Us
Contact Us DTE Energy Investor Relations www.dteenergy.com/investors (313) 235-8030 20
Slide 21: Appendix
se DTE Energy Appendix
Slide 22: DTE Electric Variance Analysis
DTE Electric Variance Analysis * Reconciliation to GAAP reported earnings included in the appendix Drivers • Colder weather in 2Q 2014 than 2Q 2015 Variance to normal weather - 2Q 2014: $3 - 2Q 2015: ($2) • Rate base growth (property taxes, depreciation and interest) • Other primarily lower O&M expe
Slide 23: 2015 Cash Flow and Capital Expenditures Guidance
2015 Cash Flow and Capital Expenditures Guidance (billions) 23 Capital Expenditures Summary Cash Flow Summary (millions) 2014 2015 Actual Guidance Cash From Operations* $1.8 $1.7 Capital Spending (2.1) (2.6) Free Cash Flow ($0.3) ($0.9) Asset Sales & Other - 0.1 Dividends (0.5) (0.5) Net Cash ($0.8)
Slide 24: Second Quarter Trading Reconciliation of Operating Earnings to Economic Net Income
DTE Energy Second Quarter Trading Reconciliation of Operating Earnings* to Economic Net Income 24 (millions, after-tax) Operating Earnings* • Economic net income equals economic gross margin*** minus O&M expenses and taxes • DTE Energy management uses economic net income as one of the performance me
Slide 25: Year-to-Date Trading Reconciliation of Operating Earnings to Economic Net Income
DTE Energy Year-to-Date Trading Reconciliation of Operating Earnings* to Economic Net Income 25 (millions, after-tax) Operating Earnings* • Economic net income equals economic gross margin*** minus O&M expenses and taxes • DTE Energy management uses economic net income as one of the performance meas
Slide 26: Second Quarter 2015 and June YTD Reconciliation of Reported to Operating Earnings
Second Quarter 2015 and June Year to Date Reconciliation of Reported to Operating Earnings 26 Use of Operating Earnings Information – DTE Energy management believes that operating earnings provide a more meaningful representation of the company’s earnings from ongoing operations and uses operating e
Slide 27: 2009 – 2014 Full Year Reconciliation of Reported to Operating Earnings
2009 – 2014 Full Year Reconciliation of Reported to Operating Earnings Use of Operating Earnings Information – DTE Energy management believes that operating earnings provide a more meaningful representation of the company’s earnings from ongoing operations and uses operating earnings as the primary
Slide 28: Use of Operating Earnings Information
Use of Operating Earnings Information – DTE Energy management believes that operating earnings provide a more meaningful representation of the company’s earnings from ongoing operations and uses operating earnings as the primary performance measurement for external communications with analysts and i