Slide 1: First Quarter 2024 Results & Outlook
First Quarter 2024 Results & Outlook April 25, 2024
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: Investment Thesis
Investment Thesis . . . Clean Energy Industry-leading net zero commitments Leader Strong Infrastructure Cash Flow & Renewal Balance Sheet Excellence through the Attractive & Constructive Top-tier regulatory jurisdictiona Diversified Legislation & Territory Regulation Affordable Prices Premium total
Slide 4: Reliability and Decarbonization Opportunities
Reliability and Decarbonization Opportunities . . . Electric Reliability Roadmap Clean Energy Law • Supports and accelerates decarbonization +$3B ~$7B • Ensures continued resource adequacy • Maintains customer affordability Benefits • Enhanced Financial Compensation ~$4B • More reliable and resilien
Slide 5: Expansive Economic Development Efforts
Expansive Economic Development Efforts . . . Electric Gas Combined Contracted Load 2022 New Load 2023 New Load 2024 New Load Hemlock Semiconductor (MW) Leading provider of polysilicon for chips and solar panels ~$375M investment >1,300 MW ~175 jobs cumulative contracted a load since 2015 326 Ford Bl
Slide 6: Financial Results & Outlook
Financial Results & Outlook . . . Q1 2024 Results Amount Commentary Managing weather Adjusted EPS $0.97 w/ countermeasures 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 Growth +6% to +
Slide 7: 2024 Adjusted EPS
2024 Adjusted EPS . . . First Three Months Nine Months To-Go 27¢ (3)¢ – (9)¢ 18¢ 9¢ 22¢ 19¢ $3.29 – $3.35 $3.11 5¢ 9¢ (52)¢ – (58)¢ (6)¢ First Quarter EPS Results 2023 2024 Reported EPS $0.69 $0.96 Adjustmentsa 0.01 0.01 Adjusted EPSa $0.70 $0.97 First First Quarter Quarter $0.97 $0.70 2023 Weather
Slide 8: Michigan's Strong Regulatory Environment
Michigan’s Strong Regulatory Environment . . . 2023 2024 2025 Renewable Energy Plan (REP) Q4 2024: Q3 2025: File Updated Expected REP Final Order Electric ✓Mar 1 : Order st Q2 2024: File New Q1 2025: Expected $92M, 9.9% ROE Rate Case Final Order U-21389 Gas Dec. 15th: Filed Rate Case Q4 2024: $136M
Slide 9: Strong Balance Sheet
Strong Balance Sheet . . . Consumers Energy S&P Moody’s Fitch Key Strengths Senior Secured A A1 A+ ✓ Forward-looking recovery ✓ Constructive rate construct Commercial Paper A-2 P-2 F-2 ✓ Strong operating cash flow Outlook Stable Stable Stable generation CMS Energy Senior Unsecured BBB Baa2 BBB ✓ 100
Slide 10: Industry-Leading Financial Performance
Industry-Leading Financial Performance . . . Adjusted EPSa +6% to +8% Dividend Weather Help Recession Recession Recession / Hurt Pandemic 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024+ Cold Mild Hot Warm Mild Cold Summer- Hot Hot Warm M
Slide 11: Q&A Thank You!
Q&A Thank You! 11 11
Slide 12: Appendix
Appendix 12 12
Slide 13: 2024 Sensitivities
2024 Sensitivities . . . Full-Year Impact Sensitivity Adj. EPS OCF 2024 Adj. EPS Sensitivities (1% Full Year in Volume) Salesa (¢) ($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 14: 2024 Planned Financings
2024 Planned Financings . . . Financingsa Plan YTD b ~$2.6B of net liquidity ($M) ($M) Consumers Energy: $250M 5-yr First Mortgage Bonds ~$1,100 $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 15: Updated Customer Investment Plan
Updated 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 contr
Slide 16: Endnotes
ENDNOTES 16 16
Slide 17: Presentation Endnotes
Presentation Endnotes Slide 3: aRRA state regulatory energy rankings, May 2023. Regulatory Research Associates, a group within S&P Global Commodity Insights Slide 5: aNew or expanding load since 2015 as of April 2024 Slide 6: a$17B utility capital investment plan (2024-2028), up $1.5B from prior pla
Slide 18: 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 19: 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 3/31/24 3/31/23 Net Income Available to Common Stockholders $ 285 $ 202 Reconciling items: Other exclusions from adjusted earnings** 4 3 Tax i