Dte Energy Company · NYSE:DTE
Dte Energy — Non-Deal Roadshow (April 2023)
29 slides from Dte Energy's roadshow presentation, Apr 3, 2023
Slide 1: Business Update
Business Update April 3-4, 2023
Slide 2: Safe harbor statement
Safe harbor statement The information contained herein is as of the date of this document. DTE Energy expressly disclaims any current intention to update any forward-looking statements contained in this document as a result of new information or future events or developments. Words such as “anticipa
Slide 3: Overview
Overview Business Update Financial Update Environmental, Social & Governance (ESG) Appendix 3
Slide 4: Fully engaged team committed to delivering best-in-class results
Fully engaged team committed to delivering best-in-class results for our customers, communities and investors Best-in-class engagement, health and safety of our employees • Received Gallup Great Workplace Award for 10th consecutive year, achieving top decile employee engagement Operating EPS guidanc
Slide 5: Executing on significant customer-focused capital investment plan while maintaining affordability
Executing on significant customer-focused capital investment plan while maintaining affordability Investing in customer-focused initiatives… …while maintaining affordability Transitioning to cleaner generation Shifting generation from coal to renewables ✓ Distinctive continuous improvement culture d
Slide 6: Distinctive continuous improvement culture drives strong track record of managing cost
Distinctive continuous improvement culture drives strong track record of managing cost and affordability Distinctive continuous improvement embedded in our culture • All 10,000+ employees engaged in continuous improvement and productivity efforts drive cost management Average annual percentage chang
Slide 7: Overview
Overview Business Update Financial Update Environmental, Social & Governance (ESG) Appendix 7
Slide 8: Increased customer-focused utility investment in 5-year plan supports 6% - 8% operating EPS growth
Increased customer-focused utility investment in 5-year plan supports 6% - 8% operating EPS1 growth through 2027 (billions) 5-year utility capital investment 95% of 5-year investment supports growth plan in utilities 2023 - 2027 $21.6 $18.1 $3.6 DTE Gas DTE Electric $3.1 $18 $18 DTE Electric $15 ~$2
Slide 9: DTE Electric: transformational investments in generation and distribution
DTE Electric: transformational investments in generation and distribution; signed two of the largest voluntary utility contracts in the country DTE Electric investment Significant progress on voluntary renewables in 2022 (billions) • Signed solar contracts with Ford and Stellantis; two of the larges
Slide 10: Significant progress on utility initiatives supports cleaner generation with focus on affordability
Significant progress on utility initiatives supports cleaner generation with focus on affordability • IRP filing prioritizes electric reliability with a focus on decarbonization and affordability − Outlines generation transformation to achieve carbon reduction of 85% in 2035, 90% by 2040 and net zer
Slide 11: IRP accelerates transition to cleaner energy future while ensuring reliability
IRP accelerates transition to cleaner energy future while ensuring reliability First 5 years (2023 - 2027) Generation mix1 • Retire one unit at Belle River in 2025 and remaining unit in 2026 (MWh %) − Convert Belle River to 1,300 MW natural gas peaking resource 3% 3% 3% 5% 6% 6% in 2025 - 2026 2% 1%
Slide 12: DTE Gas: replacing aging infrastructure to ensure reliability and transition to net zero emissions
DTE Gas: replacing aging infrastructure to ensure reliability and transition to net zero emissions Successful 2022 DTE Gas investment (billions) • Completed 220 miles of main renewal; on track for additional 13-year investment plan $3.6 • Ranked first for residential customer satisfaction by J.D. Po
Slide 13: DTE Vantage: strategic focus on decarbonization solutions for customers
DTE Vantage: strategic focus on decarbonization solutions for customers Strong project development in 2022 and 2023 • Placed one RNG project and one custom energy solutions project in service in 2022 DTE Vantage operating earnings2 • Placing three RNG projects and one custom energy solutions project
Slide 14: Financial Update
Overview Business Update Financial Update Environmental, Social & Governance (ESG) Appendix 14
Slide 15: 2023 operating EPS guidance midpoint provides 7% growth over 2022 original guidance midpoint
2023 operating EPS1 guidance midpoint provides 7% growth over 2022 original guidance midpoint (millions, except EPS) 2023 guidance Drivers / comments DTE Electric $1,010 - $1,030 Distribution and cleaner generation investments Continued main renewal and other infrastructure DTE Gas 262 - 272 improve
Slide 16: Maintaining strong cash flow, balance sheet and credit profile
Maintaining strong cash flow, balance sheet and credit profile Continued balance sheet strength… …while providing a healthy dividend • Targeting equity issuances of $0 - $100 million annually • Increased 2023 annualized dividend 7.6% to $3.81 per share through 2025 • Over 100 consecutive years of pa
Slide 17: Environmental, Social & Governance (ESG)
Overview Business Update Financial Update Environmental, Social & Governance (ESG) Appendix 17
Slide 18: Environmental, social and governance efforts are key priorities
Environmental, social and governance efforts are key priorities; aspiring to be the best in the industry Award-winning commitment to ESG priorities Environment • Transitioning towards net zero emissions at both utilities • Accelerating transition to cleaner generation • Protecting our natural resour
Slide 19: MIGreenPower program continues significant growth
MIGreenPower program continues significant growth 900 • Allows customers to purchase up to 100% of electricity business customers needs generated from renewable sources • One of the largest voluntary renewable programs in the nation • Largest renewable energy purchase from a utility announced with F
Slide 20: Natural Gas Balance program reducing GHG emissions
Natural Gas Balance program reducing GHG emissions 2021 program inception • Offering an affordable way to offset 25% to 100% of customers’ GHG emissions from an average home’s natural gas use • RNG will be sourced by transforming landfill emissions and wastewater treatment plant by-products into usa
Slide 21: Progressing on EV initiatives
Progressing on EV initiatives 2019 Charging Forward Program program inception • Promoting EV education, infrastructure and adoption • Providing residential and commercial rebates, infrastructure support and fleet advisory services Program-to-date major milestones • 1,240 Level 2 public chargers appr
Slide 22: Committed to diversity, equity and inclusion; creating a safe and welcoming environment
Committed to diversity, equity and inclusion; creating a safe and welcoming environment Employee groups create an inclusive environment where differences Health and safety of our people is a priority are celebrated and a sense of belonging exists for all employees • Multiple safety committees spanni
Slide 23: Building on the momentum of the last decade, committed to Michigan investments and supplier diversity
Building on the momentum of the last decade, committed to Michigan investments and supplier diversity 2022 Michigan spend (millions) $2.5b invested in Michigan businesses in 2022 65,000 jobs created since 2010 $20 $900m invested with Detroit suppliers in 2022 $19 invested with suppliers owned by wom
Slide 24: Governance framework provides shareholder rights and enables sustainable value creation
Governance framework provides shareholder rights and enables sustainable value creation Best-in-class governance practices 1 7 • Lead Independent Director 91% 36% • All board committees are composed exclusively of independent gender or Directors independent ethnically diverse • Stock ownership guide
Slide 25: Executive management compensation plan is aligned with our stakeholder priorities
Executive management compensation plan is aligned with our stakeholder priorities Annual or long-term incentive metrics • Employee engagement Our team • Employee safety • Customer satisfaction Our customers • Customer complaints • System reliability • Customer satisfaction Our communities • Customer
Slide 26: Overview
Overview Business Update Financial Update Environmental, Social & Governance (ESG) Appendix 26
Slide 27: IRA supports cleaner energy transition and customer affordability
IRA supports cleaner energy transition and customer affordability Supports accelerated clean energy transition and customer affordability and eliminates the need for tax equity structures • Wind and solar production tax credit • Production tax credit for existing nuclear generation • Clean fuel prod
Slide 28: 2023 cash flow and capital expenditures guidance
2023 cash flow and capital expenditures guidance Cash flow Capital expenditures (billions) (millions) 2023 2023 guidance guidance Cash from operations1 $3.2 DTE Electric Capital expenditures (4.2) Base infrastructure $1,200 Free cash flow ($1.0) New generation 500 Dividends (0.8) Distribution infras
Slide 29: Reconciliation of reported to operating earnings (non-GAAP)
Reconciliation of reported to operating earnings (non-GAAP) Use of Operating Earnings Information – Operating earnings exclude non-recurring items, certain mark-to-market adjustments and discontinued operations. DTE Energy management believes that operating earnings provide a meaningful representati