Slide 1: Second Quarter 2021 Results and Outlook
Second Quarter 2021 Results and Outlook Leading the Clean Energy Transformation July 29, 2021
Slide 2: Forward-Looking Statements
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: A Simple Investment Thesis
A Simple Investment Thesis . . . Industry-leading clean energy commitment a Net Zero Carbon (2040) & Net Zero Methane (2030) Clean Energy Leader Diversified Service Infrastructure Excellence through the Territory Renewal Top-tier regulatory jurisdictionb Strong Cash Flow Constructive & Balance Sheet
Slide 4: 2021 Integrated Resource Plan
2021 Integrated Resource Plan . . . Key Outcomes Retires ALL coal by 2025 (depreciated over design life) Adds >$1 Bn of rate base over next 5 years (>95% utility earnings by 2025) Accelerates decarbonization (~60% carbon emissions reduction by 2025 a) Increases renewable resource deployment (~8 GW o
Slide 5: Michigan's Strong Regulatory Construct
Michigan’s Strong Regulatory Construct . . . 2021 2022 Integrated Resource Plan ✓6/30: Apr.: Filed Integrated Initial order Resource Plan (IRP) U-21090 Electric ✓3/1: By Dec. 22nd: Q1: Filed $225 MM Expected File next U-20963 final order rate case 10.5% ROE Gas Gas Dec.: File next rate case . . . en
Slide 6: Investing in the Clean Energy Transformation
Investing in the Clean Energy Transformation . . . Growing Customer Investment Plan IRP Opportunity Clean Energy Generation Amount Electric Gas Incremental • Covert (2023) Opportunity ~$13¼ Bn >$1 Bn IRP >$1 Bn • DIG & Peakers (2025) ~$12¼ Bn 18% ~$11¾ Bn 42% 10-yr Opportunity Amount • Electric dist
Slide 7: Confidence in the Outlook
Confidence in the Outlook . . . 2021 Full-Year Amount Commentary Adj. Continuing Ops. EPS guidance $2.61 – $2.65 Toward the high end Annual dividend per share (DPS) $1.74 Committed to growth 2022 Full-Year Adjusted EPS guidance $2.85 – $2.87 Reaffirmed Long-Term Adjusted EPS and DPS growth +6% to +8
Slide 8: First Half 2021 EPS
First Half 2021 EPS . . . Second Quarter Results Adj. EPS by Segment 2020 2021 Reported Total EPS (GAAP) $0.48 $0.61 Q2 YTD Plus: Disposal of Disc. Ops. -- 0.01 Utility $0.66 $1.82 Less: EnerBank Disc. Ops. (0.03) (0.07) Reported Continuing Ops. EPS (GAAP) $0.45 $0.55 Enterprises 0.01 0.06 Adjustmen
Slide 9: 2021 Adjusted Continuing Ops. EPS
2021 Adjusted Continuing Ops. EPS . . . First Half Six Months To-Go 37¢ (19)¢ – (23)¢ 36¢ 12¢ 1¢ a a (6)¢ (2)¢ $2.61 – $2.65 $2.47 6¢ (21)¢ (8)¢ – (12)¢ First First Half Half $1.27 $1.64 2020 Weather Rates & Customer Usage, Normal Rates & Customer Usage, 2021 Investment Initiatives & Enterprises, We
Slide 10: 2021 Financing Plan on Track
2021 Financing Plan on Track . . . Financings Existing Facilities Plan YTD (MM) (MM) $250 MM Consumers Energy: (Nov-2022) First Mortgage Bonds $665 -- a $1.8 Bn of net liquidity CMS Energy: position with no CP outstanding ✓ Preferred - Hybrid $235 $230 50% equity credit (as of 6/30/21) Planned Equit
Slide 11: Q&A Thank You
Q&A Thank You 11 11
Slide 12: Appendix
Appendix 12 12
Slide 13: Utility Sales Recovering
Utility Sales Recovering . . . a Weather-Normalized Electric Deliveries 2021 Adjusted EPS Sensitivities (YTD 2021 vs. YTD 2020) (1% Full-Year in Volume) 13.0%b Electric Gas Residential 4¢ 2¢ Commercial 2½ ½ 3.6% 3.3% b Industrial ½ ½ (1.2)% Res. Com. Ind. Total Presentation endnotes are included a
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 Outlook Stable Stable Stable cash flow CMS Energy • Return on regulated investment Senior Unsecured BBB Baa2 BBB Juni
Slide 15: Proposed IRP Actions
Proposed IRP Actions . . . Key Objectives Current Plan 2021 IRP ~(60)% carbon • Accelerates Decarbonization Exit coal Exit coal emissions by 2040 by 2025 reduction Retire by 2025a Karn 3&4 (oil) 2031 2023 Campbell 1&2 / Campbell 3 2031/2039 2025 No new Purchase >2 GW • Ensures Reliability, Resilienc
Slide 16: Endnotes
Endnotes “severe?
Slide 17: Presentation Endnotes (pg 1)
Presentation Endnotes (pg 1) a b Slide 3: Methane emissions from our natural gas delivery system and carbon emissions company-wide UBS Research, 2021 state rankings and D.C. a b Slide 4: From 2005 baseline including utility-owned generation, PPAs and MISO purchases, post coal retirements 2021 IRP vs
Slide 18: GAAP Reconciliation
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
Slide 19: Reconciliation of GAAP EPS to Non-GAAP Adjusted EPS by Segment
CMS ENERGY CORPORATION Reconciliation of GAAP EPS to Non-GAAP Adjusted EPS by Segment (Unaudited) In Millions, Except Per Share Amounts Three Months Ended Six Months Ended 6/30/21 6/30/20 6/30/21 6/30/20 Electric Utility Reported net income per share $ 0.53 $ 0.42 $ 1.07 $ 0.83 Reconciling items: Ot
Slide 20: 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 2021 1Q 2Q Net Income Available to Common Stockholders $ 349 $ 176 Reconciling items: Electric utility and gas utility - - Tax impact - - Enterprises
Slide 21: 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 Six Months Ended 6/30/21 6/30/20 6/30/21 6/30/20 Net Income Available to Common Stockholders $ 176 $ 136 $ 525 $ 379 Reconciling items: Dispos
Slide 22: Reconciliation of GAAP to Non-GAAP Net Income from Continuing and Discontinued Operations
CMS ENERGY CORPORATION Reconciliation of GAAP to Non-GAAP Adjusted Net Income from Continuing and Discontinued Operations (Unaudited) In Millions, Except Per Share Amounts Three Months Ended Six Months Ended 6/30/21 6/30/20 6/30/21 6/30/20 Net Income Available to Common Stockholders Reported net inc