Slide 1: Environmental, Social & Governance
Environmental, Social & Governance
Slide 2: Forward-looking statements 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: ESG Disclosures
ESG Disclosures . . . • CMS Energy & Consumers Energy Websites • SEC Filings (10-K & Proxy) • Sustainability Report • Carbon Disclosure Project (participants) - Report Scope 1, 2 & 3 Emissions; Water • Climate Assessment Report (later this fall) - Considers TCFD Guidelines . . . provide a transparen
Slide 4: The Triple Bottom Line
The Triple Bottom Line . . . People • #1 Employer for diversity in MI by Forbes • Best place to work in MI by Forbes • Highest customer satisfaction ever in 2017 Planet • #1 Company in MI in Newsweek’s “Green Rankings” • Highest U.S. Utility score by Sustainalytics • Expanded Cross Winds® to support
Slide 5: People • Planet • Profit Performance
PEOPLE • PLANET • PROFIT PEOPLE PLANET PROFIT PERFORMANCE 4
Slide 6: Hometown Team . . . Corporate Giving
Hometown Team . . . Corporate Giving 1,850 Employees and retirees Contributions from Consumers $17 MM gave to… Energy, its employees and 560 non-profits in foundation. Michigan. Environment $1 MM Education $1 MM Community, Civic & Cultural $3 MM $2½ MM Social Welfare $2½ MM 2009 2010 2011 2012 2013
Slide 7: A Safe Place to Work
A Safe Place to Work . . . Recordable 2017 355 Incidents Safest Year on Record Down 82% 65 2008 2017 . . . every task, every job, every day. 6
Slide 8: Focused on Maintaining a Diverse Employee Base
Focused on Maintaining a Diverse Employee Base . . . Total Consumers Energy Employees Ranked #3 in Michigan on Military 31% Female Times Best for Vets Employers List 15% Minority Received a perfect score Rated #1 on Corporate in Michigan by Equality Forbes for Best Index for Large Employers policies
Slide 9: People • Planet • Profit Performance
PEOPLE • PLANET • PROFIT PEOPLE PLANET PROFIT PERFORMANCE 8
Slide 10: Industry-Leading Climate Goals
Industry-Leading Climate Goals . . . . . . breakthrough thinking for our planet. 9
Slide 11: Cleaner Supply Mix
Cleaner Supply Mix . . . Zero Coal 2017 Energy by Fuel Type by 2040 26% Coal 38%Gas 17% Nuclear 9% Increase 2% Renewables 8% Net Interchange Renewables Pumped Storage Power & Other to 43% . . . supported by our Clean Energy Goal. 10
Slide 12: Coal Reduction
Coal Reduction . . . Supply Mix a 100% % Coal Reduction Campbell 3 26% Coal Campbell 1&2 Karn 1&2 Filer City Renewables, 38% Gas, 2020 2023 2031 2039 Owned, Pumped Storage Filer City Karn 1&2 Campbell 1&2 Campbell 3 Market Conversion Shutdown Shutdown Shutdown Market Purchases (491) GWh (2,536) GWh
Slide 13: Breathing Easier: Air Emissions Reduction
Breathing Easier . . . Air Emissions Reduction Since 2005 94% 86% 94% 38% 95% Technology plus Announced the closure of voluntary goal 7 Coal of reducing CO2 Emissions by Plants 80% has already reduced carbon A Decade emissions by Ahead 38% of Paris Climate Accord by the end of 2017 Sulfur Nitrogen M
Slide 14: Land and Water Usage
Land and Water Usage . . . 32,102 Water Intensity Gal/MWh 20,174 Gal/MWh Total Landfill 2012 2013 2014 2015 2016 2017 Space Avoided 1,205,732 Cubic Yds 717,992 Cubic Yds 1992-2014 2015 2016 2017 . . . being dramatically reduced. 13
Slide 15: Customer Savings
Customer Savings . . . a Residential Electric Bills $106 (current dollars) Cost Reductions $100 Down 6% 2013 2018E Energy Efficiency a Residential Gas Bills (current dollars) $85 $62 Efficient Capital Down 27% 2013 2018E a Source: bls.gov for historical data, Bloomberg for 2018 estimate . . . delive
Slide 16: Natural Gas Safety
Natural Gas Safety . . . Saginaw Trail Pipeline • Five year plan • 78 Mile Project Restored 93 acres by planting a seed mix containing native grass and wildflowers to attract bees, butterflies and other pollinators. . . . while protecting the environment.15
Slide 17: People • Planet • Profit Performance
PEOPLE • PLANET • PROFIT PEOPLE PLANET PROFIT PERFORMANCE 16
Slide 18: Underpinned by Performance
Underpinned by Performance . . . Board of Directors with Diverse Backgrounds JOHN G. RUSSELL PATRICIA K. POPPE JON E. BARFIELD DEBORAH H. BUTLER By the Numbers KURT L. DARROW STEPHEN E. EWING WILLIAM D. HARVEY MYRNA M. SOTO • Members • Year average JOHN G. SZNEWAJS LAURA H. WRIGHT tenure • Independe
Slide 19: Board Experience and Diversity
Board Experience and Diversity . . . Experience Diversity Senior Leadership 100% Finance Accounting or Fin. Reporting 80% Average Age yrs. old Regulatory Environment 50% Risk Management 80% Customer Experience 90% Info. Tech. 30% Female Utility Experience 40% Strategic Planning 60% Sustainability &
Slide 20: Compensation
Compensation . . . Pay Mix for CEO Operational Goals • Meter Read Rate Base Salary • Billing Accuracy 17% • Regulatory Annual Incentive Long-term • Digital Customer Experience Index 17% (CXi) Incentive 66% • Generation Reliability (EFOR) 83% • Employee Safety Performance • Public Safety Gas Infrastr
Slide 21: Consistent Growth Through Recessions and Weather
Consistent Growth Through . . . b 7% CAGR a EPS +6% to +8% Dividend Weather Recession Recession Help _____ _____ Hurt a Adjusted EPS (non-GAAP) b Non-GAAP Cold 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 Feb. Cold Mild Hot Warm Mild Cold Summer- Hot Hot Warm Mild
Slide 22: GAAP Reconciliation
CMS ENERGY GAAP Reconciliation
Slide 23: Earnings Per Share By Year GAAP Reconciliation
CMS ENERGY CORPORATION Earnings Per Share By Year GAAP Reconciliation (Unaudited) 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 Reported earnings (loss) per share - GAAP ($0.30) $0.64 ($0.44) ($0.41) ($1.02) $1.20 $0.91 $1.28 $1.58 $1.42 $1.66 $1.74 $1.89 $1.98 $1.64 Pre