Dte Energy Company · NYSE:DTE
Dte Energy — EEI Financial Conference 2022
35 slides from Dte Energy's conference presentation, Nov 13, 2022
Slide 1: EEI Financial Conference
EEI Financial Conference November 13 - 15, 2022
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: Overview
Overview Business Update Financial Update Environmental, Social & Governance (ESG) Appendix 3
Slide 4: Significant utility investment improves reliability and provides cleaner generation, while maintaining affordability
Significant utility investment improves reliability and provides cleaner generation, while maintaining affordability ✓ Customer-focused capital investments support clean energy transition and building the grid of the future — Recently filed IRP outlines generation transformation to achieve carbon Op
Slide 5: Fully engaged team committed to delivering best-in-class results for our customers, communities and investors
Fully engaged team committed to delivering best-in-class results for our customers, communities and investors Best-in-class engagement, health and safety of our employees Total shareholder return2 • Employee engagement: Continue to achieve top decile as measured by Gallup 404% • Safety and well bein
Slide 6: 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 Shifting generation from coal to renewables ✓ Distinctive continuous improvement culture d
Slide 7: Distinctive continuous improvement culture drives strong track record of managing cost and affordability
Distinctive continuous improvement culture drives strong track record of managing cost and affordability Distinctive continuous improvement embedded in our culture • All 10,000+ employees engaged in continuous improvement and productivity efforts drive cost management Average annual percentage chang
Slide 8: IRA supports cleaner energy transition and customer affordability
IRA supports cleaner energy transition and customer affordability Supports accelerated clean energy transition and customer affordability • Wind and solar production tax credit • Production tax credit for existing nuclear generation • Investment tax credit for RNG and energy storage • Increased tax
Slide 9: Operating in a constructive regulatory environment
Operating in a constructive regulatory environment Michigan Public Service Commission (MPSC) MPSC key objectives align with DTE’s Dan Scripps Chair • Empower customers to make informed utility choices • Assure safe, secure and reliable utility services and infrastructure Katherine Peretick • Assure
Slide 10: Business Update
Overview Business Update Financial Update Environmental, Social & Governance (ESG) Appendix 10
Slide 11: Increased customer-focused utility investment in 5-year plan supports 6% - 8% operating EPS growth through 2027
Increased customer-focused utility investment in 5-year plan supports 6% - 8% operating EPS1 growth through 2027 (billions) Utility capital investment increased in 95% of 5-year investment 5-year plan by $3.5 billion plan at utilities 2023 - 2027 $21.6 $18.1 $3.6 DTE Gas DTE Electric $18 $3.1 ~$23 b
Slide 12: Transformational investments in generation and distribution provide customers cleaner, more reliable energy
Transformational investments in generation and distribution provide customers cleaner, more reliable energy Utility capital investment (billions) Focusing on infrastructure renewal and continuing transition to $45 cleaner generation DTE Gas • Building the grid of the future to ensure best-in-class p
Slide 13: IRP prioritizes electric reliability with a focus on decarbonization and affordability
IRP prioritizes electric reliability with a focus on decarbonization and affordability CO2 emission reduction goals ✓ Supporting the Michigan economy and tax base with power generated in Michigan — Investing $9 billion over the next 10 years into Michigan’s Net economy supporting more than 25,000 jo
Slide 14: IRP accelerates transition to cleaner energy future while ensuring reliability
IRP accelerates transition to cleaner energy future while ensuring reliability Material acceleration of 4,100 MW of coal plant retirements Generation mix1 • Belle River one unit in 2025, remaining unit in 2026 (MWh %) • Monroe two units in 2028, remaining two units in 2035 3% 3% 3% 5% 6% 6% 2% 1% Si
Slide 15: Load growth from electrification and aspiration for top quartile reliability drive grid investments
Load growth from electrification and aspiration for top quartile reliability drive grid investments over the next 10 years DTE Electric power availability1 DTE Electric load from vehicle electrification 2 (GWh) Top quartile 99.98% 99.97% 99.96% 99.97% 99.96% 99.97% 99.97% 99.97% 7,000 6,000 5,000 4,
Slide 16: DTE Electric: transformational investments in generation and distribution provide customers cleaner, more reliable energy
DTE Electric: transformational investments in generation and distribution provide customers cleaner, more reliable energy 5-year cleaner generation plan • Accelerating decarbonization goals while ensuring reliability and DTE Electric investment (billions) affordability for our customers − 800 MW IRP
Slide 17: DTE Gas: replacing aging infrastructure to transition to net zero emissions
DTE Gas: replacing aging infrastructure to transition to net zero emissions DTE Gas investment (billions) Capital investment opportunities focus on infrastructure improvements and decarbonization $3.6 • Main renewal investments minimize leaks and reduce costs $3.1 • Base infrastructure enhances tran
Slide 18: DTE Vantage: strategic focus on decarbonization solutions for customers
DTE Vantage: strategic focus on decarbonization solutions for customers Continued progress in 2022 • Placed two new projects into service DTE Vantage operating earnings1 (millions) Positioned for continued growth $175 - $185 • Targeting operating earnings growth of ~$15 million annually with $1.0 -
Slide 19: Financial Update
Overview Business Update Financial Update Environmental, Social & Governance (ESG) Appendix 19
Slide 20: Strong performance provides confidence to achieve previously increased 2022 operating EPS guidance
Strong performance provides confidence to achieve previously increased 2022 operating EPS1 guidance (millions, except EPS) 2022 original guidance 2022 current guidance DTE Electric $915 - $929 $927 - $937 DTE Gas 227 - 237 237 - 241 DTE Vantage 85 - 95 90 - 95 Energy Trading 15 - 25 20 - 35 Corporat
Slide 21: 2023 operating EPS early outlook midpoint provides 7% growth over 2022 original guidance midpoint
2023 operating EPS1 early outlook midpoint provides 7% growth over 2022 original guidance midpoint (millions, except EPS) 2023 early outlook DTE Electric $1,010 - $1,030 DTE Gas 262 - 272 DTE Vantage 115 - 125 Energy Trading 20 - 30 Corporate & Other (150) - (136) DTE Energy $1,257 - $1,321 Operatin
Slide 22: 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 • Increasing 2023 annualized dividend 7.6% to $3.81 per share through 2025 • Over 100 consecutive years of p
Slide 23: Environmental, Social & Governance (ESG)
Overview Business Update Financial Update Environmental, Social & Governance (ESG) Appendix 23
Slide 24: Environmental, social and governance efforts are key priorities; aspiring to be the best in the industry
Environmental, social and governance efforts are key priorities; aspiring to be the best in the industry Environment • Transitioning towards net zero emissions at both utilities • Accelerating transition to cleaner generation • Protecting our natural resources Social • Focusing on the diversity, saf
Slide 25: MIGreenPower program continues significant growth
MIGreenPower program continues significant growth 700 • 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 F
Slide 26: Natural Gas Balance program reducing GHG emissions
Natural Gas Balance program reducing GHG emissions 2021 • Offering an affordable way to offset 25% to 100% of program inception 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 usa
Slide 27: Progressing on EV initiatives
Progressing on EV initiatives 2019 Charging Forward Program program inception • Promoting EV education, infrastructure and adoption • Offering residential charger rebates, infrastructure incentives and fleet advisory services Program-to-date major milestones • 1,100 public chargers approved 500,000+
Slide 28: Committed to diversity, equity and inclusion; creating a safe and welcoming environment
Committed to diversity, equity and inclusion; creating a safe and welcoming environment Employee resource groups promote a safe and welcoming Health and safety of our people is a priority environment and offer professional development, networking, mentoring and support • Multiple safety committees s
Slide 29: 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 2021 Michigan spend (millions) $2.2b invested in Michigan businesses in 2021 54,000 jobs created since 2010 $10 $820m invested with Detroit suppliers in 2021 $17 invested with suppliers owned by wom
Slide 30: Award-winning commitment to being a top ESG employer in the country
Award-winning commitment to being a top ESG employer in the country Corporate citizenship awards Veteran friendly Gallup Great Ambassadors Championing Overall excellence America’s Most employer Workplace Award 10 Excellence Award for in diversity Responsible consecutive years commitment to supportin
Slide 31: 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 91% 36% • All board committees are composed exclusively of independent gender or Directors independent ethnically diverse • Stock ownership guide
Slide 32: Executive management compensation plan is aligned with our stakeholder priorities
Executive management compensation plan is aligned with our stakeholder priorities Performance-based compensation elements Annual incentive metrics Long-term metrics • Employee engagement Our team • Employee safety • Customer satisfaction Our customers • Customer complaints • System reliability • Cus
Slide 33: Appendix
Overview Business Update Financial Update Environmental, Social & Governance (ESG) Appendix 33
Slide 34: 2022 cash flow and capital expenditures guidance
2022 cash flow and capital expenditures guidance Cash flow Capital expenditures (billions) (millions) Previous Revised Previous Revised guidance guidance guidance guidance Cash from operations1,2 $2.6 $2.1 DTE Electric Capital expenditures (3.7) (3.5) Base infrastructure $1,170 $1,060 Free cash flow
Slide 35: 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 more meaningful represe