Slide 1: Investor Meetings March 2024
Investor Meetings March 2024
Slide 2: Enter “so what” if necessary – Century Gothic, Bold, Size 18 or smaller
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 2023 Financial Statistics (NYSE: CMS) Based in Jackson, MI >8,300 Employees (44% unionized)a Consumers Energy NorthStar Clean Energy $7.5B Revenue 2023 $907M Adjusted net incomeb >95% regulated Avg. Rate Base 21 years Industry-leadin
Slide 4: Consumers Energy Positioned Well
Consumers Energy Positioned Well . . . Service Territory Electric Gas Combined • Electric Utility 1.9M electric customers 9,260 MW of capacity • Gas Utility 1.8M gas customers 309 Bcf gas storage • Serving 6.8M Michigan residents Attracted Planet Goalsa >1,300 MW • Exit coal in 2025 of new or expand
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) • 210 MW of solar (AR, MI, WI) Dearborn Industrial Generation (DIG) & Other • >1,000 MW in MI (including DIG & Peakers) • Upside: tightening capacity markets with future r
Slide 6: Our Commitment to Sustainability
Our Commitment to Sustainability . . . TOP QUARTILE FOR GLOBAL UTILITIES DOUBLE A RATED . . . continues to be recognized globally. 6
Slide 7: ESG Disclosures are Transparent
ESG Disclosures are Transparent . . . • CMS Energy & Consumers Energy Websites • SASB Index (Electric Utilities & Power Generation) • SEC Filings (10-K & Proxy) • SASB Index (Gas Utilities & • Carbon Disclosure Project Distributors) • Report Scope 1, 2 & 3 • TCFD Index Emissions • Water • Global Rep
Slide 8: Investment Thesis
INVESTMENT THESIS
Slide 9: Investment Thesis
Investment Thesis . . . ✓ Industry-leading net zero commitments Clean Energy Leader Strong Cash Flow Infrastructure ✓ & Balance Sheet Renewal Excellence through the ✓ Attractive & Constructive Top-tier regulatory jurisdictiona Diversified Territory Legislation Affordable Prices ✓ Premium total share
Slide 10: 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 11: Infrastructure Renewal is Necessary
Infrastructure Renewal is Necessary . . . $7B Electric Reliability Roadmap New Energy Legislation 5-yr plan Provides capital opportunity to meet 60% Including up to 400 Renewable Portfolio Standard by 2035 and miles per year of 100% Clean Energy Standard by 2040 undergrounding 25 years of main repla
Slide 12: Electric Reliability Roadmap
Electric Reliability Roadmap . . . Capital Investment Opportunity Actions & Customer Benefits (5-year) Actions: ~$7B • Vegetation management to a 7-year trim cycle +$3B • Up to 400 miles of annual undergrounding Nearly half of $3B • Replace >20K poles per year incremental spend is incorporated in •
Slide 13: Michigan's Strong Regulatory Environment
Michigan’s Strong Regulatory Environment . . . 2023 2024 Supportive Energy Policy Renewable Energy Plan (REP) • Timely recovery of investments H2 2024: File updated REP ✓ Forward-looking test to meet 60% renewable energy by 2035 years/earn authorized ROEs ✓ 10-month rate cases Electric ✓ Monthly fue
Slide 14: De-risking Inflationary Pressures
De-risking Inflationary Pressures . . . Near-term Risk Mitigation Episodic Cost Savings Global Risks Countermeasures Year Event Savings ✓ Manageable wage inflation Labor (>40% unionized) 2022 Palisades retirement >$90M ✓ ~95% non-union retention ratea ✓ Manageable supply chain risk 2023 Karn 1&2 c
Slide 15: Expansive Economic Development Efforts
Expansive Economic Development Efforts . . . Electric Gas Combined 2022 New Load 2023 New Load 2024 New Load Switch Attracted World-Renowned Data Center >1,300 MW Corning Incorporated of new or expanding load Leading Provider since 2015a 326 MW of Polysilicon ~$900M investment 359 MW ~1,100 jobs For
Slide 16: 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 17: Industry-Leading Financial Performance
Industry-Leading Financial Performance . . . Adjusted EPSa +6% to +8% Dividend Weather Help Recession Recession Recession / Hurt Pandemic 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024+ Mild Hot Warm Mild Cold Summer- Hot Hot Warm Mild Polar
Slide 18: Endnotes
ENDNOTES 18 18
Slide 19: Presentation Endnotes
Presentation Endnotes Slide 3: aExcludes seasonal and contract workers bAdjusted, (non-GAAP) cDividend Policy: Payout Ratio of ~60% overtime 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)
Slide 20: 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 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 Twelve Months Ended 12/31/23 12/31/22 12/31/23 12/31/22 Net Income Available to Common Stockholders $ 306 $ 168 $ 877 $ 827 Reconciling items: