Slide 1: 1st Quarter 2015 Earnings Conference Call
EXHIBIT 99.3 April 24, 2015 1st Quarter 2015 Earnings Conference Call
Slide 2: Safe Harbor Statement
Safe Harbor Statement The information contained herein is as of the date of this presentation. Many factors may impact forward-looking statements including, but not limited to, the following: impact of regulation by the EPA, FERC, MPSC, NRC and CFTC as well as other applicable governmental proceedin
Slide 3: Participants
• Peter Oleksiak – Senior Vice President and CFO • Jeff Jewell – Vice President and Controller • Mark Rolling – Vice President and Treasurer • Anastasia Minor – Executive Director, Investor Relations Participants 3
Slide 4: Agenda: Overview, Q1 Results, Cash Flow and Balance Sheet, Summary
• Overview • First Quarter 2015 Earnings Results • Cash Flow and Balance Sheet Metrics • Summary 4
Slide 5: Our business strategy is fundamental to how we create value for our investors
Our business strategy is fundamental to how we create value for our investors 5 5% - 6% Annual EPS Growth Attractive Dividend Strong Balance Sheet Utility growth plan driven by infrastructure investments Strategic and transparent growth opportunities in non-utility businesses provide diversity i
Slide 6: We continue to make progress on many fronts
We continue to make progress on many fronts Michigan energy policy 2015 utility rate orders DTE Electric gas plant acquisitions Non-utility projects ‒ Millennium successful open season ‒ NEXUS Pipeline FERC pre-filing process ‒ 8MW on-site cogeneration project in-service ‒ REF updates 6
Slide 7: Michigan's economy has been revitalized and Detroit is continuing its rebirth
Michigan’s economy has been revitalized and the City of Detroit is continuing its economic rebirth 7 Unemployment rate in Michigan lowest since 2001 Michigan improved 8 spots in state ranking of growth in Real Gross Domestic Product* Detroit metro area ranks 8th in the U.S. for number of new or expa
Slide 8: Michigan energy policy reform taking shape in 2015
Michigan energy policy reform taking shape in 2015 8 Governor Rick Snyder Representative Aric Nesbitt Senator Mike Nofs “I am calling for the legislature to help us reform this system before the summer break, so that we can give ourselves as much time as possible to make a smooth transition.” Govern
Slide 9: We remain committed to delivering 5% to 6% operating EPS growth
* Reconciliation to GAAP reported earnings included in the appendix (dollars per share) We remain committed to delivering 5% to 6% operating EPS* growth $3.33 $3.64 $3.75 $3.94 $4.09 $4.60 $4.60 $2.12 $2.24 $2.35 $2.48 $2.62 $2.76 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 EPS Dividend A
Slide 10: We remain confident in our 2015 operating EPS guidance
We remain confident in our 2015 operating EPS* guidance (millions, except EPS) 2015 Guidance 2015 YTD Actuals* 10 * Reconciliation to GAAP reported earnings included in the appendix ** Total DTE Energy excluding Energy Trading DTE Electric DTE Gas Gas Storage & Pipelines Power & Industrial Projects
Slide 11: Agenda: First Quarter 2015 Earnings Results
• Overview • First Quarter 2015 Earnings Results • Cash Flow and Balance Sheet Metrics • Summary 11
Slide 12: DTE Energy First Quarter 2015 Operating Earnings Variance
12 DTE Energy First Quarter 2015 Operating Earnings Variance 1Q 2014 1Q 2015 Change DTE Electric 136$ 136$ -$ DTE Gas 129 111 (18) Gas Storage & Pipelines 21 27 6 Power & Industrial Projects 15 33 18 Corporate & Other (9) (25) (16) Growth segments** 292$ 282$ (10)$ Growth segments operating EPS 1.64
Slide 13: Agenda: Cash Flow and Balance Sheet Metrics
• Overview • First Quarter 2015 Earnings Results • Cash Flow and Balance Sheet Metrics • Summary 13
Slide 14: DTE Energy First Quarter 2015 Cash Flow
1Q 2014 1Q 2015 Cash From Operations $0.5 $0.8 Capital Spending (0.5) (0.7) Free Cash Flow $0.0 $0.1 Asset Sales - - Dividends (0.1) (0.1) Net Cash ($0.1) $0.0 Debt Financing: Issuances $0.2 $0.5 Redemptions (0.1) (0.5) Change in Debt $0.1 $0.0 DTE Energy First Quarter 2015 Cash Flow • Cash from ope
Slide 15: DTE Energy First Quarter 2015 Capital Expenditures
DTE Energy First Quarter 2015 Capital Expenditures Drivers Capital Expenditures 15 1Q 2014 1Q 2015 DTE Electric Operational $308 $272 Environmental 41 38 Renewable Energy / New Generation 5 242 $354 $552 DTE Gas Operational $30 $44 Main Renewal / Meter Move Out / Pipeline Integrity 14 11 $44 $55 Non
Slide 16: Strong balance sheet remains a key priority and supports growth
Leverage* 49% 51% 23% 25% Strong balance sheet remains a key priority and supports growth * Debt excludes securitization, a portion of DTE Gas’ short-term debt, and considers 50% of the Junior Subordinated Notes as equity Funds from Operations** / Debt* Target 50% - 53% Target 20% - 22% 5 • 2015 fin
Slide 17: Agenda: Summary
• Overview • First Quarter 2015 Earnings Results • Cash Flow and Balance Sheet Metrics • Summary 17
Slide 18: Summary
Summary * Reconciliation to GAAP reported earnings included in the appendix 18 • Strong first quarter performance • On track to meet our operating earnings* guidance and balance sheet metrics in 2015 • Expect constructive outcome in both Michigan’s energy policy reform and DTE’s regulatory filings •
Slide 19: Contact Us
Contact Us DTE Energy Investor Relations www.dteenergy.com/investors (313) 235-8030 19 AGA conference presentation is May 18 at 9:45 AM PT With Steve Kurmas – President and COO Webcast access: www.dteenergy.com/investors
Slide 20: Appendix
se DTE Energy Appendix
Slide 21: First quarter 2015 operating earnings variance
First quarter 2015 operating earnings* variance (millions) 21 DTE Gas DTE Electric 1Q 2014 Weather Rate base O&M and Other 1Q 2015 1Q 2014 Weather Other 1Q 2015 $129 ($11) ($7) $111 $136 ($3) ($12) $136 $15 * Reconciliation to GAAP reported earnings included in the appendix
Slide 22: 2015 Cash Flow and Capital Expenditure Guidance
2015 Cash Flow and Capital Expenditure Guidance (billions) 22 Capital Expenditures Summary Cash Flow Summary (millions) 2014 2015 Actual Guidance Cash From Operations $1.8 $1.7 Capital Sending (2.1) (2.6) Free Cash Flow ($0.3) ($0.9) Asset Sales & Other - 0.1 Dividends (0.5) (0.5) Net Cash ($0.8) ($
Slide 23: DTE Energy Trading Reconciliation of Operating Earnings to Economic Net Income
DTE Energy Trading Reconciliation of Operating Earnings* to Economic Net Income 23 (millions, after-tax) Operating Earnings* • Economic net income equals economic gross margin*** minus O&M expenses and taxes • DTE Energy management uses economic net income as one of the performance measures for exte
Slide 24: First Quarter 2015 Reconciliation of Reported to Operating Earnings
First Quarter 2015 Reconciliation of Reported to Operating Earnings 24 Use of Operating Earnings Information – DTE Energy management believes that operating earnings provide a more meaningful representation of the company’s earnings from ongoing operations and uses operating earnings as the primary
Slide 25: First Quarter 2014 Reconciliation of Reported to Operating Earnings
First Quarter 2014 Reconciliation of Reported to Operating Earnings 25 Use of Operating Earnings Information – DTE Energy management believes that operating earnings provide a more meaningful representation of the company’s earnings from ongoing operations and uses operating earnings as the primary
Slide 26: 2009 – 2014 Full Year Reconciliation of Reported to Operating Earnings
2009 – 2014 Full Year Reconciliation of Reported to Operating Earnings Use of Operating Earnings Information – DTE Energy management believes that operating earnings provide a more meaningful representation of the company’s earnings from ongoing operations and uses operating earnings as the primary
Slide 27: Use of Operating Earnings Information
Use of Operating Earnings Information – DTE Energy management believes that operating earnings provide a more meaningful representation of the company’s earnings from ongoing operations and uses operating earnings as the primary performance measurement for external communications with analysts and i