Slide 1: Leading the Clean Energy Transformation
Leading the CLEAN ENERGY TRANSFORMATION First Quarter 2023 Results and Outlook April 27, 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: Investment Thesis
Investment Thesis . . . ✓ Industry-leading net zero commitments Clean Energy Leader ✓ Diversified Service Territory Infrastructure Excellence through the Renewal ✓ a Top-tier regulatory jurisdiction Strong Cash Flow Constructive & Balance Sheet Legislation Affordable Prices ✓ Premium total sharehold
Slide 4: Customer Investments Required
Customer Investments Required . . . Key Facts • Extreme weather events and an expansive and aging system ~485K customers impacted • Constructive regulatory environment focused on reliability improvement Next Steps • Alignment with MPSC to identify further needed investments, including 2nd largest st
Slide 5: 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/
Slide 6: Financial Results & Outlook
Financial Results & Outlook . . . Q1 2023 Results Amount Commentary Adjusted EPS $0.70 Managing through weather 2023 Outlook Adjusted EPS Guidance $3.06 – $3.12 Toward the high end Annual Dividend Per Share $1.95 Up 11¢ Long-Term Outlook Adjusted EPS Growth +6% to +8% Toward the high end Dividend Pe
Slide 7: 2023 Adjusted EPS
2023 Adjusted EPS . . . First Three Months Nine Months To-Go (50)¢ 67¢ – 73¢ 36¢ – 42¢ $3.06 – $3.12 $2.89 28¢ (27)¢ --¢ 17¢ (3)¢ (20)¢ (14)¢ First Quarter EPS Results 2022 2023 Reported EPS $1.21 $0.69 First Adjustmentsa (0.01) 0.01 First Quarter Adjusted EPS a $1.20 $0.70 Quarter $1.20 $0.70 2022
Slide 8: 2023 Planned Financings
2023 Planned Financings . . . Financings Existing Facilities Plan YTD a ($M) ($M) ~$2.3B of net liquidity Consumers Energy: $250M First Mortgage Bonds $1,970 $1,525 (Nov-2024) Securitization 688 -- CMS Energy: Contracted Equity (issued) 440 -- $1,100M (Dec-2027) Retirements (incl. term loans): $550M
Slide 9: Industry-Leading Financial Performance
Industry-Leading Financial Performance . . . Adjusted EPSa +6% to +8% Dividend Weather Help Recession Recession Recession / Hurt Pandemic 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023+ Cold Mild Hot Warm Mild Cold Summer- Hot Hot Warm Mild P
Slide 10: Q&A Thank You!
Q&A Thank You! 1010
Slide 11: Appendix
Appendix 1111
Slide 12: 2023 Sensitivities
2023 Sensitivities . . . Full-Year Impact Sensitivity Adj. EPS OCF 2023 Adj. EPS Sensitivities (1% Full Year in Volume) Salesa (¢) ($M) Electric Gas Electric (~37,000 GWh) + 1% + 7 + 27 Residential 4¢ 3¢ Gas (~311 Bcf) + 1 + 4 + 16 Commercial 2½ ~½ Industrial ½ ~½ Gas Prices + 50¢ + 0 + 60 Electri
Slide 13: Updated Customer Investment Plan
Updated Customer Investment Plan . . . New Utility Investment Plan Rate Base Growth Other Growth Driversb a >7%/yr ~$32B ✓ EWR incentives 20% ~$22½B ✓ FCM on PPAs 59% Electric utility ’23 – ’27 investment $15.5B 41% ✓ 10.7% wind RPS 39% ✓ NorthStar 2022 2027 Clean Energy Generation Electric Distribu
Slide 14: Endnotes
Endnotes “cus evens?
Slide 15: Presentation Endnotes
Presentation Endnotes Slide 3: aUBS Research, 2022 state rankings and D.C Slide 5: aUBS Research, 2022 state rankings and D.C Slide 7: aAdjusted EPS; See GAAP reconciliation on slide 19 a Slide 8: $1,825M in available revolvers + $506M of unrestricted cash Slide 9: aExcludes discontinued operations
Slide 16: 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 17: 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 3/31/23 3/31/22 Electric Utility Reported net income per share $ 0.23 $ 0.58 Reconciling items: Other exclusions from adjusted earnings 0.01 - Ta
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) In Millions, Except Per Share Amounts Three Months Ended 3/31/23 3/31/22 Net Income Available to Common Stockholders $ 202 $ 351 Reconciling items: Disposal of discontinued operations gain - (5) Tax
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 2023 1Q Net Income Available to Common Stockholders $ 202 Reconciling items: Electric utility and gas utility 3 Tax impact (1) NorthStar Clean Energy