Cms Energy Corporation · NYSE:CMS
Cms Energy — Non-Deal Roadshow (March 2009)
22 slides from Cms Energy's roadshow presentation, Mar 30, 2009
Slide 1: Growing Forward Investor Meetings March 2009
Growing Forward Investor Meetings March 2009 David W. Joos President and Chief Executive Officer Laura L. Mountcastle Vice President and Treasurer
Slide 2: Forward-looking statements
This presentation contains "forward-looking statements" as defined in Rule 3b-6 of the Securities Exchange Act of 1934, as amended, Rule 175 of the Securities Act of 1933, as amended, and relevant legal decisions. The forward-looking statements are subject to risks and uncertainties. They should be
Slide 3: 2008 - Year in Review
2008 - "Year in Review" Energy legislation Michigan economy Improved safety and operational performance Common dividend increase Foundation established for long-term growth.
Slide 4: Regulatory Timeline
Oct-07 Nov-07 Dec-07 Jan-08 Feb-08 Mar-08 Apr-08 May-08 Jun-08 Jul-08 Aug-08 Sep-08 Oct-08 Nov-08 Dec-08 Jan-09 Feb- 09 Mar-09 Regulatory Timeline November December April May June September November Electric Rate Case U-15645 Filed Staff and intervenors file Rebuttals Self implement Cross examinatio
Slide 5: 2009 Electric Rate Case
2009 Electric Rate Case Amount (mils) Capital Investment Recovery $ 104 Higher O&M 50 Sales decline and mix 43 Rate of Return (11%) 17 Total Request $ 214 Sales tracker Uncollectible accounts tracker File and implement Remaining Palisades refund could be used to offset partially the rate increase Lo
Slide 6: Renewables and Energy Optimization
Renewables and Energy Optimization Renewable Energy Plan 10% by 2015, currently 4% Primarily invest in wind 200 Mw by 2013, 500 Mw by 2015, 900 Mw by 2017 50% build, 50% PPA Over $1 billion capital investment Levelized surcharge of $85 - $90 million annually over plan life Energy Optimization Plan T
Slide 7: BEI - Electric Resource Plan (Peak Load)
BEI - Electric Resource Plan (Peak Load) 0 Generation gap needs to be addressed. Existing generation and long-term purchases
Slide 8: Renewable Energy Today
Renewable Energy Today 2008 Energy Generation Mix 40,100 Mwh Wind Hydro Biomass Solid waste Anaerobic digester Landfill gas Nuclear (PPA) Renewables Coal MISO Purchase Natural Gas 17 5 45 19 14 382 MW of renewable resources provide 5% of total energy. a _ _ _ _ _ a Based on generation needed to serv
Slide 9: Wind Growth (2008-2018)
Wind Growth - (2008-2018) 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 71 71 71 71 71 271 271 571 571 971 971 Projected 200 MW 300 MW 400 MW
Slide 10: BEI Summary
BEI Summary Extensive analysis of alternatives and risks Diverse and balanced plan Meets 10% renewable portfolio standard by 2015 Meets energy efficiency target of 5.5% by 2015 Includes demand management programs Purchase of Zeeland natural gas plant Build new clean coal facility Renewables (Nominal
Slide 11: 7% Utility Growth Rate Base
2008 2009 2010 2011 2012 2031 Depreciation 7.851 8.729 8.486 7.922 7.592 7.123 6.597 Maintenance 0.574 1.132 1.644 2.117 2.616 Customer growth 0.077 0.156 0.244 0.337 0.431 Environmental 0.057 0.19 0.341 0.501 0.797 Zeeland plant 0.481 0.481 0.481 0.481 0.481 Gas compression and pipelines 0.064 0.14
Slide 12: Financial Accomplishments
Financial Accomplishments Achieved EPS and capital structure targets Increased dividend Exited exposure to monoline insurance companies Added $150 million, 364-day revolver at Utility Accelerated and increased our planned FMBs at Utility Issued $500 million, 6.7% FMB due 2019 Reshaped capital spendi
Slide 13: 2009 Adjusted EPS Guidance
2009 Adjusted EPS Guidance 2009 adjusted EPS guidance at $1.25 continues growth in an uncertain global economy; future growth still planned at 6% - 8%. 2003 2004 2005 2006 2007 2008 2009 Future 0.81 0.9 0.96 1.08 0.84 1.25 0.8 0.85 0.9 1 0.8 1.2 1.25 CMS Earnings Potential By Business Segment a 8% G
Slide 14: 2008 - 2013 Cash Flow
2008 - 2013 Cash Flow 2008 2009 2010 2011 2012 2013 CF after Capex -517 -300 -49 146 -313 -622 81 182 265 323 707 877 CF after working capital 748 669 870 633 818 960 CF after interest 711 477 41 70 41 96 Operating cash flow 335 357 367 394 424 454 Billions $ Cash flow before dividend Operating cash
Slide 15: Capital Spending
Capital Spending 2008 Budget Outlook Contingency Maintenance including customer growth 706 600 674 611.3 Environmental 45 69 197 197.1 Choices 75 181 264 125.1 120 186 Capital spending dialed back with some choices delayed temporarily. Average depreciation $410 million Equity contributions to Utilit
Slide 16: Liquidity Outlook
Liquidity Outlook Liquidity position sound. Good coverage for operational risks. Plans in place to address Parent maturity in 2010, if capital markets closed. Oct Dec Mar Jun Sep Dec Mar Jun Sep Dec Blank Liquidity 1505 1150 1337 1917 1057 915 1460 1252 960 1020 Cash 670 950 1137 1717 857 715 1260 1
Slide 17: What Makes CMS Different?
What Makes CMS Different? Recent State legislation provides framework for growth Diversified investment opportunities boost rate base and EPS Solid liquidity position, no need to issue equity in near term NOL and AMT credits add value Track record of predictability
Slide 18: Appendix
Appendix
Slide 19: Liquidity Components
Liquidity Components At 03-27-09 Facility Available Renewal Date (mils) (mils) A/R program $ 250 $ 250 May 2009 Bank of Nova Scotia LOC 192 0 November 2009 Consumers revolvers UBOC 150 150 September 2009 JPMorgan 500 328 March 2012 Energy Parent revolver 550 487 April 2012 Subtotal $1,642 $1, 215 Ca
Slide 20: Tax Benefits
Tax Benefits Year-End Actual Estimate 2008 2009 2010 (mils) (mils) (mils) Gross NOL carry forwards $1,300 $900 $400 Net NOL cash benefit at 35% $ 455 $315 $140 Credit carry forwards 292 292 292 Remaining cash benefit $ 747 $607 $432 New American Recovery and Reinvestment Act of 2009 bonus depreciati
Slide 21: 2009 Sensitivities
2009 Sensitivities Annual Impact Sensitivity EPS FCF (mils) Sales (weather-adjusted) Electric (34,845 GWh) a + 1% + $.04 + $18 Gas (289.4 bcf) + 1 + .02 + 7 Uncollectible accounts $(5) million (.02) (5) Auto-sector-wide bankruptcy (15) - (30) (.04) - (.08) (15) - (30) Gas prices + .50 + .01 + 60 ROE
Slide 22: Consumers Capital Expenditures
Consumers Capital Expenditures Appendix MATURITY SCHEDULE OF CMS AND CECO LONG-TERM DEBT & PREFERRED SECURITIES AS OF 02/28/2009 Reflects maturity of $200MM 4.8% FMBs & return of $20K due to overpayment of IQ puts; both CECo Maturity Amount F/V S/U or Call Date (000’s) DEBT/ CO SHORT-TERM DEBT: F S