Slide 1: Leading the Clean Energy Transformation: Investor Meetings August 2023
Leading the CLEAN ENERGY TRANSFORMATION Investor Meetings August 2023
Slide 2: Forward-looking statements and non-GAAP disclaimer
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 2022 Financial Statistics (NYSE: CMS) Based in Jackson, MI ~8,500 Employees (41% unionized)a Consumers Energy NorthStar Clean Energy $8.6B Revenue 2022 $838M Adjusted net incomeb >95% regulated Avg. Rate Base 20 years Industry-leadin
Slide 4: Consumers Energy Positioned Well
Consumers Energy Positioned Well . . . 4th Largest Combination Utility Electric Gas Combined • Electric Utility 1.9M electric customers 7,526 MW of capacity • Gas Utility 1.8M gas customers 309 Bcf gas storage • Serving 6.7M Michigan residents Attracted Planet Goalsa >1,150 MW • Exit coal in 2025 of
Slide 5: NorthStar Clean Energy Provides Clean Solutions
a NorthStar Clean Energy Provides Clean Solutions . . . Renewable Platform • 368 MW of wind (OH, TX) • 64 MW of biomass (MI, NC) • 30 MW of solar (MI, WI) DIG & Other • >1,000 MW in MI (including DIG & Peakers) • Upside: tightening supply with future retirements Presentation endnotes are included af
Slide 6: Over 135 years of Sustainable Business Practices
Over 135 years of Sustainable Business Practices . . . Founded by the Exiting Coal in 2025 and Foote Brothers in 1886 adding 8 GW of solar by 2040 Solar Gardens Cross Winds Energy Park Karn Coal Plant Ludington Pumped Storage . . . cleaner and leaner than ever before. 6
Slide 7: Our Commitment to Sustainability
Our Commitment to Sustainability . . . TOP QUARTILE FOR GLOBAL UTILITIES DOUBLE A RATED Received U.S. Environmental Protection Agency 2023 Energy Star® Partner of the Year Sustained Excellence Award . . . continues to be recognized globally. 7
Slide 8: ESG Disclosures are Transparent
ESG Disclosures are Transparent . . . • CMS Energy & • DE&I Website Consumers Energy Websites • EEO1 Report • SEC Filings (10-K & Proxy) • SASB Index (Electric Utilities & • Carbon Disclosure Project Power Generation) • Report Scope 1, 2 & 3 Emissions • SASB Index (Gas Utilities & Distributors) • Wa
Slide 9: Investment Thesis
INVESTMENT THESIS
Slide 10: Investment Thesis
Investment Thesis . . . Industry-leading net zero commitments Clean Energy Leader Diversified Service Territory Infrastructure Excellence through the Renewal Top-Tier regulatory jurisdictiona Strong Cash Flow Constructive & Balance Sheet Legislation Affordable Prices Premium total shareholder return
Slide 11: Infrastructure Renewal is Necessary
Infrastructure Renewal is Necessary . . . Electric distribution system is older than Exiting coal in 2025 and peers adding 8 GW of solar by 2040 Goal to improve ≥1K miles annually 25 years of main replacement through our >$500M of vegetation management spend over Enhanced Infrastructure 5 years to i
Slide 12: Michigan’s Strong Regulatory Environment
Michigan’s Strong Regulatory Environment . . . 2022 2023 Supportive Energy Law Integrated Resource Plan (IRP) • Timely recovery of investments ✓ Forward-looking test years ✓Jun. 23 :rd Settlement Approved ✓ 10-month rate cases U-21090 ✓ Earn authorized ROEs ✓ Monthly fuel adjustment trackers (PSCR/G
Slide 13: De-risking Inflationary Pressures
De-risking Inflationary Pressures . . . Near-term Risk Mitigation Episodic Cost Savings Global Risks Countermeasures Year Event Savings ✓ Executed 5-yr union contracts in 2020 (>40% unionized) 2022 Palisades retirement >$90M Labor a ✓ ~95% non-union retention rate 2023 Karn 1&2 coal unit retirements
Slide 14: Credit Metrics Maintained
Credit Metrics Maintained . . . Consumers Energy S&P Moody’s Fitch Ratings Drivers Senior Secured • Strong financial A A1 A+ position Commercial Paper A-2 P-2 F-2 • Growing operating cash flow Outlook Stable Stable Stable CMS Energy • Constructive return on regulated Senior Unsecured BBB Baa2 BBB in
Slide 15: Expansive Economic Development Efforts
Expansive Economic Development Efforts . . . Electric Gas Combined 2022 New Load 2023 New Load Attracted Gotion >1,150 MW Global EV Battery Manufacturer of new or expanding load ~$2,400M investment since 2015a >2,000 jobs FlavorSum Fastest-Growing North Hemlock Semiconductor American Flavor Company
Slide 16: Executing on the Clean Energy Transformation
Executing on the Clean Energy Transformation . . . Net Zero Targets Proof Points ✓ Retired Karn 1 & 2 coal units, 515 MW 2030 Today ✓ Acquired existing ~1.2 GW CCGT Net zero methane emissions for our ✓ Adding 341 MW to VGPa Program gas delivery system ✓ Approved for ~$11M in low-carbon energy infras
Slide 17: Our Clean Energy Transformation
Our Clean Energy Transformation . . . Exit Coal in 2025… …While Ensuring Reliability a (Coal % PP&E ) <20% • Purchase ~1.2 GW of existing gas Classic 7 retirement and capacity (Covert) Karn 1&2 retirement • Maintain ~1.2 GW of peaking capacity Campbell 1–3 through 2031 (Karn 3&4) retirement; <10% Re
Slide 18: Industry-Leading Financial Performance
Industry-Leading Financial Performance . . . Adjusted a 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+ Cold Mild Hot Warm Mild Cold Summer- Hot Hot Warm Mild
Slide 19: Appendix
Appendix 19 19
Slide 20: Economic Development is a Team Sport
Economic Development is a Team Sport Utilities Speed of Community Business Business Site Climate Readiness Talent Availability Site Availability Regulatory Workforce Environment Development Permitting Logistics Incentives 20
Slide 21: In the News
In the News Georgia, Kentucky and Michigan are going to dominate electric vehicle battery manufacturing in the United States by 2030. Each of those three states will be able to manufacture between 97 and 136 gigawatt hours’ worth of EV batteries per year by 2030, according to plans they have laid ou
Slide 22: Megaprojects Have Changed the Game
Megaprojects Have Changed the Game Projects Committed (MW) Electric Gas Combined 2022 New Load Electric Generation & Battery Storage 510 101 75 126 105 127 69 2017 2018 2019 2020 2021 2022 2023 Forecast 22
Slide 23: Outcomes of Economic Development
Outcomes of Economic Development New Jobs & Supply Chains Investment Opportunities (Voluntary Renewables and Distribution) 2021, 2020 & 2019 Top 20 Addition v Attrition Utilities in Economic Development Supporting Legislative Priorities 2022, 2021, 2020, 2019 & 2018 Editor’s Top Choice Utility Lower
Slide 24: Endnotes
ENDNOTES 24 24
Slide 25: Presentation Endnotes
Presentation Endnotes Slide 3: aExcludes seasonal and contract workers bAdjusted, (non-GAAP) cDividend per share 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), net zero GHG emissions for
Slide 26: 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 27: Reconciliation of GAAP Cash Flows to Non-GAAP Funds from Operations
CMS ENERGY CORPORATION Reconciliation of GAAP Cash Flows from Operating Activities to Non-GAAP Funds from Operations Reconciliation of GAAP Indebtedness to Non-GAAP Adjusted Debt (Unaudited) FUNDS FROM OPERATIONS In millions Year Ended 12/31/2022 Net Cash Provided by Operating Activities $ 855 Recon
Slide 28: 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 12/31/22 12/31/21 12/31/22 12/31/21 Net Income Available to Common Stockholders $ 168 $ 637 $ 827 $ 1,348 Reconciling item