Slide 1: Investor Meetings
Investor Meetings September 20, 2019 FOCUSED ON WORLD CLASS PERFORMANCE
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: CMS Energy Overview
CMS Energy Overview Corporate Structure Key Information CMS Energy 2018 Financial Statistics (NYSE: CMS) Based in Jackson, MI a Employees (37% unionized) Consumers Energy Enterprises EnerBank Revenue 2018 Adjusted net income b Avg. Rate Base 92% of c Operating Growth for past 16 years Income Gas $5.
Slide 4: Consumers Energy
Consumers Energy . . . 4th Largest Combination Utility • Electric Utility 1.8 million electric customers 8,261 MW of capacity • Gas Utility 1.8 million gas customers 309 bcf gas storage (#1 in the U.S.) • Serving 6.7 million Michigan residents Consumers Energy Planet Goals Next 5 Years By 2040 gallo
Slide 5: Compelling Investment Thesis
Compelling Investment Thesis . . . Aging Infrastructure Clean Energy Leader Constructive Regulation Strong Cash Flow & Balance Sheet Affordable Prices Diversified Service Territory . . . adaptive to changing conditions. 5
Slide 6: Large and Aging System
Large and Aging System . . . Electric 25 years of distribution main replacement system is through our older than Enhanced Infrastructure peers Replacement Program > $50 Bn of capex opportunity Age of coal fleet is more ~1,670 miles of gas than transmission pipeline; most 50 years built in the WWII e
Slide 7: Michigan Offers Supportive Policy
Michigan Offers . . . Supportive Policy Premium Regulation Tier Michigan • Economic growth (tax policies, 2013 - Present skilled labor, balanced budgets) 1 7 • Robust Energy Law defines policy 2 10 2012 2008 • Forward-looking test year 3 18 • Attractive renewable investment 4 9 framework • Construct
Slide 8: Managing Customer Bills
Managing Customer Bills . . . Cost Components Residential Bills as % of Wallet a 100% 100% (Electric & Gas) Utility Bill Down 90% 50 bps! Utility Bill ~ 4% ~ 3½% 80% Fuel and Power Costs TV & Phone ~ 4% TV & Phone ~ 4% Healthcare ~ 5% Healthcare ~ 9% 70% Food ~ 12% ~70% Food ~ 13% 60% ~70% Transport
Slide 9: Innovation and Technology
Innovation and Technology . . . Capital-Enabled 2.4 million installed Customer-Enabled Technology-Enabled Pilot underway Pre-cool homes . . . reduces costs and creates capital headroom. 9
Slide 10: Economic Development is Robust
Economic Development is Robust . . . Customer Committed Load Diversified Customer Base Economic Grand (2018 Electric & Gas Rate Mix) a Indicators: Rapids U.S. GDP Growth 32 % 17 % 20102017 Population Growth 8% 6% Auto Other 20102018 Other 2% 2% Unemployment* 2.8 % 3.6 % Industrial *May 2019 Unempl
Slide 11: Clean Energy Future
Clean Energy Future . . . Elimination of Coal More Renewable Energy Innovative Energy Solutions Consumers Energy Capacity Mix Earn incentive mechanisms 10% 20% 8% 22% 9% 6% 8% 12% 11% 14% 10% Rate based 31% 10% or Earn on 56% PPAs 42% 20% 11% 2019 2030 2040 Renewables Coal Natural Gas Storage
Slide 12: Credit Metrics Maintained
Credit Metrics Maintained . . . S&P / S&P Moody’s Fitch Fitch Moody’s (Dec. ‘18) (Jul. ‘19) (Jul. ‘19) Ratings Drivers AA- Aa3 A+ A1 • Strong financial position Consumers A A2 Secured A- A3 BBB+ Baa1 • Growing operating BBB Baa2 cash flow BBB- Baa3 BB+ Ba1 BBB+ Baa1 BBB Baa2 CMS Unsecured • Return o
Slide 13: Consistent Growth Through Changing Circumstances
Consistent Growth Through . . . 7% CAGR b a EPS +6% to +8% Dividend +7% 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 2019 Feb. Cold Mild Hot Warm Mild Cold Summer- Hot Hot W
Slide 14: CMS' Trading Performance
CMS’ Trading Performance . . . Stock Performance Total Shareowner Return a b CMS CMS UTY UTY S&P 500 S&P 500 500% 400% 604% 391% 300% 117% 200% 178% 100% 51% 69% 8% 0% -100% '08 '09 '10 '11 '12 '13 '14 '15 '16 '17 '18 1 Year 3 Year 5 Year 10 Year _____ _____ a 10-year stock performance as of Decembe
Slide 15: GAAP Reconciliation
GAAP Reconciliation
Slide 16: Reconciliations of GAAP Net Income to Non-GAAP Adjusted Net Income
CMS ENERGY CORPORATION Reconciliations of GAAP Net Income to Non-GAAP Adjusted Net Income (Unaudited) In Millions, Except Per Share Amounts Three Months Ended Twelve Months Ended 12/31/18 12/31/17 12/31/18 12/31/17 Net Income (Loss) Available to Common Stockholders $ 108 $ (3) $ 657 $ 460 Reconcilin
Slide 17: Earnings Per Share By Year GAAP Reconciliation
CMS ENERGY CORPORATION Earnings Per Share By Year GAAP Reconciliation (Unaudited) GAAP GAAP 2018 over 2018 over 2003 2017 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 CAGR Growth Reported earnings (loss) per share - GAAP ($0.30) $0.64 ($0.44) ($0.41) ($1.02) $1.20