Slide 1: Second Quarter 2024 Results & Outlook
Second Quarter 2024 Results & Outlook July 25, 2024
Slide 2: Forward-looking statements and non-GAAP measures
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: Investment Thesis
Investment Thesis . . . Clean Energy Industry-leading net zero commitments Leader s Co or Strong Infrastructure Cash Flow & Renewal st -w Balance Sheet Inve orkers Excellence through the Cu Customers sto m ers Attractive & Constructive Top-tier regulatory jurisdictiona Diversified Law & Territory Re
Slide 4: Michigan's Strong Regulatory Environment
Michigan’s Strong Regulatory Environment . . . 2024 Supportive Energy Policy Electric • Timely recovery of investments ✓ Forward-looking test years/earn authorized ✓ Mar. 1st: Order May 31st: Filed Rate Case By Mar. 31, 2025: Expected Order ROEs $92M, 9.9% ROE $325Ma, 10.25% ROE U-21389 U-21585 U-21
Slide 5: Needed Customer Investments
Needed Customer Investments . . . Customer Investments Key Affordability Drivers Clean Energy Transformation ✓ CE Way cost savings (REP & IRP)a • ~$220M since 2020 ✓ Large episodic savings (PPAs/coal exit) • >$200M savings through 2025 ✓ Economic development Electric Natural Gas • >1,300 MW of new o
Slide 6: Financial Results & Outlook
Financial Results & Outlook . . . YTD 2024 Results Amount Commentary Up vs. 2023 with Adjusted EPS $1.63 confidence in the full year 2024 Full-Year Outlook Adjusted EPS Guidance $3.06 $3.29 –– $3.12 $3.35 Toward the high end Annual Dividend Per Share $2.06 Up 11¢ Long-Term Outlook Adjusted EPS Growt
Slide 7: 2024 Adjusted EPS
2024 Adjusted EPS . . . First Half Six Months To-Go 18¢ 0¢ – 6¢ 13¢ 20¢ ✓ 12¢ 9¢ $3.29 – $3.35 $3.11 13¢ (35)¢ – (41)¢ (5)¢ (3)¢ First Half EPS Results 2023 2024 Reported EPS $1.36 $1.61 Adjustmentsa 0.09 0.02 Adjusted EPSa $1.45 $1.63 First First Half Half $1.45 $1.63 2023 Weather Rates & Cost Savi
Slide 8: 2024 Planned Financings
2024 Planned Financings . . . Financingsa Plan YTD b ~$2.5B of net liquidity ($M) ($M) Consumers Energy: $250M 5-yr First Mortgage Bonds ~$1,275 $600 4.60% (Nov-2025) CMS Energy: Contracted Equity (issued) ~266 ~266 ✓ ~$70/sh $1,100M Retirements (incl. term loans): (Dec-2027) Consumers Energy 302 --
Slide 9: Industry-Leading Financial Performance
Industry-Leading Financial Performance . . . Adjusted EPSa +6% to +8% Dividend Weather Help Recession Recession Recession / Hurt Pandemic 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024+ Cold Mild Hot Warm Mild Cold Summer- Hot Hot Warm M
Slide 10: Q&A Thank You!
Q&A Thank You! 10 10
Slide 11: Appendix
Appendix 11 11
Slide 12: 2024 Sensitivities
2024 Sensitivities . . . Full-Year Impact Sensitivity Adj. EPS OCF 2024 Adj. EPS Sensitivities (1% Full Year in Volume) Salesa (¢) ($M) Electric Gas Electric (~37,000 GWh) + 1% + 7 + 27 Residential 4¢ 3¢ Gas (~311 Bcf) + 1 + 4 + 15 Commercial 2½ ~½ Industrial ½ ~½ Gas Prices + 50¢ + 0 + 60 Utility
Slide 13: Customer Investment Plan
Customer Investment Plan . . . New Utility Investment Plan Rate Base Growth Other Growth Driversb ~7½%/yr a $35.2B ✓ EE incentive moving 63% 20% from 20% to 22.5% Electric utility investment $24.6B (at 2% YoY load ’24 – ’28 reduction) $17B 37% 43% ✓ ~9% FCM on new PPAs for clean energy contracts 202
Slide 14: 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 15: Endnotes
ENDNOTES 15 15
Slide 16: Presentation Endnotes
Presentation Endnotes Slide 3: aRRA state regulatory energy rankings, February 2024. Regulatory Research Associates, a group within S&P Global Commodity Insights Slide 4: a$325M position includes a $22M surcharge related to distribution investments made in 2023 above prior approved levels b$62.5M of
Slide 17: 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 18: 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) 18
Slide 19: Reconciliation of GAAP Net Income to Non-GAAP Adjusted Net Income by Quarter
CMS ENERGY CORPORATION Reconciliation of GAAP Net Income to Non-GAAP Adjusted Net Income by Quarter (Unaudited) In Millions, Except Per Share Amounts 2024 2023 1Q 2Q 1Q 2Q 3Q 4Q Net Income Available to Common Stockholders $ 285 $ 195 $ 202 $ 195 $ 174 $ 306 Reconciling items: Electric utility and ga