View Presentation - CMS Energy Corporation

Content
•
•
•
•
•
How it Works
Investment
Upsides
Partners
Passion to improve
EEI Financial Conference
November 11 - 13, 2014
Ludington Pumped Storage
Fourth largest in the world
Ray Compressor
Jackson
Gas Plant
Station
#1 LDC in gas storage
Cross Winds Energy Park
#2 in renewable sales in the Great Lakes area
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 forward-looking statements should be considered in the context of the risk
and other factors detailed from time to time in CMS Energy’s and Consumers Energy’s Securities and Exchange Commission
filings. Forward-looking statements should be read in conjunction with “FORWARD-LOOKING STATEMENTS AND
INFORMATION” and “RISK FACTORS” sections of CMS Energy’s and Consumers Energy’s Form 10-K for the year ended
December 31, 2013 and as updated in subsequent 10-Qs. CMS Energy’s and Consumers Energy’s “FORWARD-LOOKING
STATEMENTS AND INFORMATION” and “RISK FACTORS” sections are incorporated herein by reference and discuss
important factors that could cause CMS Energy’s and Consumers Energy’s results to differ materially from those anticipated in
such statements. CMS Energy and Consumers Energy undertake no obligation to update any of the information presented
herein to reflect facts, events or circumstances after the date hereof.
The presentation also includes non-GAAP measures when describing CMS Energy’s results of operations and financial
performance. A reconciliation of each of these measures to the most directly comparable GAAP measure is included in the
appendix and posted on our website at www.cmsenergy.com.
CMS Energy provides historical financial results on both a reported (Generally Accepted Accounting Principles) and adjusted
(non-GAAP) basis and provides forward-looking guidance on an adjusted basis. Management views adjusted earnings as a key
measure of the company’s present operating financial performance, unaffected by discontinued operations, asset sales,
impairments, regulatory items from prior years, or other items. These items have the potential to impact, favorably or
unfavorably, the company's reported earnings in future periods.
Investors and others should note that CMS Energy and Consumers Energy post important financial information using the
investor relations section of the CMS Energy website, www.cmsenergy.com and Securities and Exchange Commission filings.
1
HOW IT WORKS -- Why Invest? . . . .
Our Growth Engine
(2015-2024 Capex)
Supported By
● UPSIDES create headroom
(Investment, Sales, Cost, & DIG)
● PARTNERS support good
regulation
$15.5
Billion
5% - 7% EPS growth
(Customers, Regulators, & Policy Makers)
● PASSION to improve for
customers and owners
(Value, Reliability, & Environment)
More “upside”
NOT yet in Plan!
. . . . next 10 years brighter than last.
2
HOW IT WORKS -- Breakthrough Thinking . . . .
Customer Value
Most improved gas utility
in customer satisfaction!
Cost Control
About 400 employees leave
and 300 are hired each year.
Engaged Employees
Productivity Enhancements
First quartile in utilities
and rank among most
admired companies.
Up 46% since 2006 with
another 5% improvement
each year!
. . . . provides continuously improving results!
3
INVESTMENT -- “Catch-Up” . . . .
Amount
(billions)
$1.8
> $1.5 per
year
Peers
Peer Performance a
Consumers Energy
CMS
Capex
19%
Peer Average
Liquidity
21%
16%
16%
Cash Flow
(oper)
18%
14%
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024
_____
a Based on June 2014 information percent of market cap
Source: 10K; actual amounts through 2013 smoothed for illustration
. . . . creating an opportunity for the next ten years.
4
INVESTMENT -- Ten-Year Capex Plan Expanded . . . .
Opportunity Level
2015-2024
10-Year Plan
Amount
(bils)
$15.5 Billion
Generation capacity
• PPA replacement
• ROA return
• More RPS
Gas conversions & expansion
Grid modernization
Total Opportunities
$3.0
$20+ Billion
1.0
1.0
$5.0
Upside?
Rate Base up 5% to 7%
Customer
base rates
<2
>4
X

. . . . driving long-term, organic growth, while keeping base rates well below inflation.
5
INVESTMENT -- Customer-Driven . . . .
Clean Power
Capacity
Reliability
Infrastructure
Opportunity
$1.5 Billion
$1.1 Billion
$5.0 Billion
$6.1 Billion
$5.0 Billion
Jackson gas plant
Consumers Smart Energy
Gas distribution
Gas combined cycle
Gas transmission
Gas storage
Propane switching
Gas infrastructure
Gas conversion
Electric reliability
Electric distribution
More RPS
Environmental
Renewable energy
Ludington Pumped Storage
. . . . and more in GAS business!
6
INVESTMENT -- Ten-Year Plan . . . .
Amount
(bils)
$8.0
$7.5
$ 2.0
1.8
New Capacity
ROA Eliminated?
1.6
1.4
Jackson Plant
0.8
More RPS?
New Capacity
PPA’s Expire
Renewables 10% RPS
Environmental
1.2
1.0
More
Upside
Gas
Smart Energy
Depreciation
Depreciation
Grid Modernization
Electric Reliability
0.6
0.4
0.2
E&G Base Maintenance
0.0
2015 - 2019
2015
- 2019
- 2024
20202020
- 2024
. . . . clear for next ten years – needed, not just wanted.
7
INVESTMENT -- Capacity Opportunities . . . .
MW
11,000
Capacity Growth Over Next Ten Years
Not in plan
1,200
MW
10,000
PPA’s Expire
1,240 MW
~8,600 MW
7,500
Further
Upside
PPA
2,600
capacity
~30%
Owned
6,000
5,000
Today
780 MW
~800 MW
410 MW
Shortfall
PPA
580
Owned
8,820
Lower customer bills
540 MW
Jackson Plant
ROA
Palisades PPA MCV PPA
Replaces
Eliminated? Expires 2022 Expires 2025
Classic Seven
Future
MISO Zone 7
Shortage 2016
3,000 MW
. . . . emerging with replacements not yet in plan!
8
UPSIDES -- Capacity Price Increases . . . .
Today
Future Scenarios
(mils)
(mils)
$55
+$50
+$30
• Nine-year 250 MW
“energy” contract at $4.06
• Capacity to Consumers
• 25 MW/2015 at $2.32
• 50 MW/2016 at $4.36
$35
Upside:
Capacity and energy
contracts layered
in over time
$5
Capacity price < $0.50
($ kW per month)
Recent Contracts
$4.50
$7.50
(CONE)
. . . . could add value to the 700 MW “DIG” plant.
9
UPSIDES -- Michigan’s Economic Growth . . . .
Grand Rapids
15.3%
Top 10% of All “Cities”
Gross Domestic Product – 2010 through 2013
WA
8.8
MT
ND
11.6
54.9
MN
SD
OR
ID
17.3
WI
11.3
7.4
WY
5.5
4.3
3.2
UT
CO
14.5
10.3
5.4
MO
9.4
7.6
11.8
NM
IN
OH
12.1
10.5
KY
3.0
TN
OK
7.6
AR
TX
LA
5.8
9.8
WV
9.2
9.3
NJ
4.1
MD
VA 5.9
5.0
NC
7.4
1.7
NH
6.2
MA
9.8
5.7
8.9
CT
1.7
RI
5.0
DE
3.5
DC
3.5
SC
MS
18.9
NY
PA
9.4
3.6
VT
6.5
IL
KS
ME
11.4
10.3
CA
AZ
MI
IA
NE
13.1
NV
Michigan
Top 10
state
11.5
5.2
AL
GA
6.9
5.1
7.6
FL
4.0
Highest quintile
Fourth quintile
Third quintile
Second quintile
Lowest quintile
Source: U.S. Department of Commerce – bea.gov, real GDP 2009 chained dollars, 2013 advance and 2009 – 2012 revised, 6/12/14
HI
AK
7.7
3.2
U.S. Total = 8.4%
. . . . among the best in the nation.
10
UPSIDES -- Economic Growth . . . .
Examples of New Business
Electric
Gas
Industries
Auto
MW
50
Food
7
Combination
Recent Announcement
Recent Announcement
Plasan Carbon Composites
Dicastal North America, Inc.
• High performance auto
body parts
• 620 new jobs
• $29 million investment
• Phased in next 3 years
• World’s largest maker of
alloy wheels
• 300 new jobs
• $140 million investment
• Production begins in 2015
Durolast Roofing
Manufacturing
21
Metal
20
Petroleum
19
Plastics
19
Others
19
Total
Up 155
Betz
Continental Dairy
GM Assembly
Enbridge
Magna-Cosma
Dart
Post
MSU FRIB
WKW
MACI
Denso
Brembo
. . . . another 2.5% of sales growth.
11
UPSIDES -- Sales Growth . . . .
Economic Indicators
Annual Electric Salesa
Industrial
Grand
Rapids
Michigan
U.S
Total
Total excluding Energy Optimization
8.0%
Building Permits*
+73%
+9%
+8%
5.0%
GDP 2010
2013
Population 2010
15.3
2013
Unemployment (9/14)
11.4
8.4
3
0
2
4.9
7.2
5.9
2.0%
1.0%
3.5%
2.5%
2.0%
1.5%
0.5%
-2.5%
-5.0%
*Annualized numbers thru September 2014
2008-2009
Recession
2010-2013
Recovery
_____
a Weather normalized vs prior year
2014
2015-2018
Conservative
Outlook
. . . . planned conservatively.
12
UPSIDES -- Trend of O&M Cost Savings . . . .
O&M Trend vs Peers
Future Savings
2018 vs 2013
(mils)
0
50%
0
~6% per year
Peers
0
~2% per year
0
Inflation
0
-25%
• Fuel mix
$ - 25
• Benefits
- 75
• Less Expensive New
- 75
Hires & Lower Headcount
• Smart Meters
00
-7%
0
0
-7%
CMS
-10%
0
-17%
0
Actual
-250
2006 2007 2008 2009 2010 2011 2012 2013
• Service & Reliability
- 25
+100
Upgrades
2018 below 2013
Savings
$-100
-10%
Plan
2014
2018
Lines smoothed for illustrative purposes
. . . . accelerated; funding investment and reducing risk.
13
UPSIDES -- 2014 Reinvestment Helps Customers . . . .
Adjusted EPS
(non-GAAP)
2014
+18¢
+15¢
Third Quarter
Weather (Electric)
Reinvestment
Total Change
+9¢
First Nine Months
Weather (Gas)
Cost savings
Reinvest & other
Total Change
Guidance
January
March 31
EPS
16¢
4
(16)
+ 4¢
June 30
+4¢
EPS
(6)¢
(5)
(11)¢
Good
Choices
$1.78 +7%$1.76 +6%
September 30
Plan
December
. . . . AND provides sustainable growth for investors.
14
PARTNERS -- Electric Rate Case Investment . . . .
“Win-Win” Rate Case
Key Features
A) New rate design
New
Offset
Investment Reductions
(Big users competitive!)
2001
Request Securitization
B) Jackson Plant in rate base
Net
Customer
Rate
Change
Jackson
Plant
12/14
11/15
12/15
(Lowest price in many years!)
C) Investment recovery & cost
reductions
(Industry leader!)
. . . . largely offset by cost reductions & elimination of old securitization surcharge.
15
PARTNERS -- New Electric Rate Design . . . .
Residential
Commercial
Industrial
Energy Intensive
2.5%
-0.7%
-1.3%
-3.2%
-3.4%
-4.7%
-4.8%
-5.0% -4.8%
-9.8%
-15.0%
-20.0%
Base Rate
Fuel Recovery
Net Reduction
. . . . and lower fuel cost have positive impact on average electric rates.
16
PARTNERS -- Election Results . . . .
Governor’s Race
State Senate
Michigan’s Comeback
Continues
Governor
Rick Snyder (R)
• Eliminated state deficit; balanced four budgets
Democrats
38
11/-1
a
Republicans
27/+1
State House
Democrats
Republicans
110
b
• More than 250,000 jobs since 2010; best
a
recovery in nation!
• Focus on affordable, reliable energy
_____
Rick for Michigan
b Business Leaders for Michigan
a
47/-4
63/+4
. . . . Governor Snyder reelected.
17
PARTNERS -- Constructive Regulation . . . .
Commission
John Quackenbush (R),
Chairman
Term Ends: July 2, 2017
Tier 1 State Ranking
1
Michigan
5
2
Sally Talberg (I)
Term Ends: July 2, 2019
10
3
18
4
Greg White (I)
Term Ends: July 2, 2015
5
10
6
Barclays Research
. . . . is supported by a quality Commission and a strong Law.
18
PARTNERS -- Michigan Energy Law Update . . . .
• Adaptability
• Reliability
• Affordability
Update
• Environmental
protection
• 10% renewables
by 2015
• Energy efficiency
standards
• Historical test
year
• 12-18 months
regulatory lag
• No cap on ROA
Before 2008
• File-and-implement
• 10% ROA cap
TODAY
2015 Improvements
. . . . builds on visionary 2008 Law!
19
PASSION TO IMPROVE -- CMS Energy . . . .
Substantial Future Growth
Total Shareowner Return
(5-Year Cumulative)
170%
170%
CMS Energy:
Winner of EEI Award
107%
102%
Peers
$7.5
O&M Reductions
(2006-2013)
Regulatory
S&P 500
$6.3
(2009-2014)
(2010-2013)
CMS
Next 5
Years
Capex (bils)
Sales Growth
_____
Source: EEI Index Award, 5-year ended September 30, 2014
Past
Performance
Capacity Op!
(7)%
(10)%
Conservative
+1%
+½ %
Conservative
Visionary
Law
Tier 1 Ranking
Improved
Law
. . . . building on past performance for even brighter future.
20
PASSION TO IMPROVE -- Mindset . . . .
10-Year Actual
$1.76-$1.78
7% CAGR
a
EPS
Dividend
$1.21
b
$1.26
$1.36
$0.81
14%
$0.96
27%
32%
$0.84
Int’l Sale
39%
80%
6%
96¢
$1.85
$1.66
6%
$1.08
$0.90
$1.45
$1.55
$1.89
$1.08
$1.02
84¢
66¢
50¢
36¢
20¢
2003
_____
a
b
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
Dividend Payout 0%
25%
30%
40%
49%
58%
62%
62%
62%
2015 Future
60%-70%
Adjusted EPS (non-GAAP) excluding MTM in 2004-2006
$1.25 excluding discontinued Exeter operations and accounting changes related to convertible debt and restricted stock
. . . . drives consistent “no excuse” growth, without resets.
21
Appendix
Growing the Gas Business . . . .
Gas System
• #4 largest gas utility in U.S.
Gas Investment
Amount
(bils)
$ 3.0
• 50,000 miles of distribution pipes
(Cumulative 5-Year Plan)
Continuous
Growth
$2.4
2.5
• 1,700 miles of transmission lines
2.0
• 300 bcf gas storage
1.5
• 3.5% of all gas storage in U.S.
1.0
• 85,000 potential propane conversions
0.5
$2.5
$2.0
0.0
2009-2014
2015-2019
2020-2024
. . . . accelerating investment opportunities.
23
Gas Infrastructure . . . .
New Customers
Inspection
Storage
50,000 New customers
1,700 Miles
23 Wells
$200 Million
$100 Million
$100 Million
Compression
Main Replacement
Transmission
Includes
conversions
Commission
approved
32 Miles
19,000 + Horsepower
800 Miles
$200 Million
$400 Million
$450 Million
. . . . investing $2.4 billion over the next 5 years.
24
Electric Distribution . . . .
Demand
$ 1.0 Billion
Circuits
In service 2,253
Upgrade
603
Reliability
$ 0.7 Billion
Transformers
In service 663,044
Replace
16,175
Capacity
$ 0.3 Billion
Total
$ 2.0 Billion
Meters
In service 2,039,283
Replace 1,732,393
Poles
In service
40 years old
Replace
1,554,309
761,711
50,763
. . . . investing $2 billion over the next 5 years.
25
MISO Zone 7 Capacity . . . .
As of October 2014
MISO Zones
(in GW)
25
22
Reserves
3
3
7
Demand
2016 Resources
_____
Source: MISO
22
2016 Resource
Requirement
Expected Shortfall
. . . . shortfall expected to be 3,000 MW in 2016.
26
Cleaner Generation . . . .
Balanced Portfolio
Diverse Capacity
Renewables
2005
Clean Coal
6%
Lake Winds
Energy Park
100 MW
Karn Generating
Plant, 515 MW
Capacity %
Gas
Renewables
8%
31%
11%
Renewables
3%
Pumped Storage
41%
Ludington Pumped
Storage Plant
1,872 MW
Cross Winds
Energy Park
111 MW
2017
8%
3%
6%
Clean Coal
Gas
Campbell Generating
Plant, 1,455 MW
Coal
Pumped Storage
Oil
Nuclear
Purchases
37%
12%
24%
47% Gas &
Renewables
10%
Jackson Plant, 540 MW
. . . . puts us in a good position to meet carbon regulations.
27
Capital Expenditures
2015
(mils)
New Generation (includes Renewables)
Environmental
Gas
Smart Energy
Electric Reliability
Maintenance
2016
(mils)
2017
(mils)
2018
(mils)
2019
(mils)
2015-2019
Subtotal
(mils)
2020-2024
Subtotal
(mils)
Total
2015-2024
(mils)
$
56 $
217
214
129
205
716
222 $
121
223
172
184
636
52 $
136
199
164
191
667
64 $
153
159
43
279
758
134 $
212
138
22
290
751
528
839
933
530
1,149
3,528
$
610 $
120
1,065
2,070
4,166
1,138
959
1,998
530
3,219
7,694
Total
$
1,537 $
1,558 $
1,409 $
1,456 $
1,547 $
7,507
$
8,031 $
15,538
Electric
Gas
$
1,018 $
519
1,085 $
473
910 $
499
984 $
472
1,073 $
474
5,070
2,437
$
5,584 $
2,447
10,654
4,884
$
1,537 $
1,558 $
1,409 $
1,456 $
1,547 $
7,507
$
8,031 $
15,538
Total
28
O&M Cost Control . . . .
Average Annual O&M Change
+6%
Fuel Mix
Peers
Actual/Plan (exc
2013 major storms)
Peers
Future Examples
+2%
+2%
Retire Coal
Add GCC
Total
Peers
Peers
Future Savings (mils)
2016
2016
MW
Employees
- 950
+ 540
-410
- 300
+ 20
- 280
$25
2014 - 2018
CMS
-1%
CMS
CMS
-2%
-3%a
_____
a -8% Before reinvestment
2006-2013
2012
2013
CMS
CMS
CMS
Benefits
-2%a
-2%
2002-2012 Actions completed
2013
EGWP, OPEB & other
Future Savings
Upside?
Plan
Conservatively
2014 2014-2018
Fuel and Benefits
$25
50
$75
$100
. . . . provides headroom for conservative planning ahead.
29
Customer-Focused Reinvestment . . . .
Icy Late December
Adjusted EPS
O&M B/(W)
Than Forecast
(non-GAAP)
(mils)
2013
+13¢
2012 Hot
Summer
2013 Cold
Winter &
Cost Savings
2012
Warm
Winter
2012
• Storm(total $50 M)
• Insurance
• Lower contributions
• Sales-weather
$(37)
16
9
12
$ 0
Total
$1.66
+7%
Reinvested earlier
2012
Cost
Saving
-13¢
2013 Reinvestment
Electric reliability
Gas reliability
Generation & Corp “pull-aheads”
Service restoration cost & other
Subtotal - pre-Nov/Dec Storms
November Service Restoration
Reinvestment
Amount EPS
(mils)
$14
3¢
16
4
7
2
21
5
$58
14¢
15
3
. . . . has enabled us to manage our work.
30
Gas and Electric Rate Cases . . . .
2013
File annual
rate case
File annual
rate case
2013
2014
GAS
Avoided
Avoided
Main Features
2015
Filed
$88 M
7/01
Selfimplement
A) Investment recovery
& cost reductions
Final
Order
B) Simple, small case
Securitization
Surcharge Ends
$80 M
Plan to
file rate
case
ELECTRIC
2014
Selfimplement
2015
Final
Order
A) Rate design
B) Jackson plant
C) Investment recovery
& cost reductions
Main Features
. . . . primarily for investment recovery with O&M offsets.
31
Sustainability . . . .
Sustainalytics Overall Score
• Ranked 14th out of 226 energy
providers worldwide
Points
80
80.0
78
78.0
20%
Improvement
76.0
74.0
• Improvement in all categories:
72.0
 Social
+12
 Environment
+10
 Governance
+ 2
70
70.0
68.0
66.0
Recent Performance
65
2013
Average
61
64.0
62.0
60.0
2011
2012
2013
_____
Sustainalytics is an independent research firm that provides information to investors
. . . . Consumers Energy ranks among top energy providers in the world.
32
Reintroduction through Smart Energy . . . .
Smart Meter Technology
Snapshot
 Deliberate pace of program
 Cellular solution (point-to-point network)
 300,000 smart meters installed
 99.5% meter read rate
 Realization of operational benefits
Net Promoter Score
41
26
Pre-Install
58%
increase
Post-Install
. . . . with an opt-out rate of less than 1%.
33
Emphasis on Corporate Citizenship . . . .
Customer Satisfaction
In the Community
(Residential Electric)
Price
22%
Power Quality &
Reliability
27%
CEO John
Russell
welcomes
Governor
Rick Snyder
to launch the
“Anchor
Initiative” in
Jackson,
Michigan.
Billing &
Payment
19%
Corporate
Citizenship
13%
Communications
13%
MIS recently became
the largest company
to join Consumers
Energy’s Green
Generation Program.
Customer
Service
6%
. . . . makes an impact on our customers and our community.
34
Electric Customer Base Diversified . . . .
Top Ten Customers
•
•
•
•
•
•
•
•
•
•
Hemlock Semiconductor (zero margin)
General Motors
Nexteer Automotive Corporation
Gerdau Macsteel
Denso International America
Meijer
Packaging Corp of America
State of Michigan
Spectrum Health
AT&T
Percentage of electric gross margin is 2.5%
2013 Electric Gross Margin
Commercial, 32%
Residential, 50%
Industrial, 14%
Other 4%
$2.1 Billion
2013 ranked by deliveries
. . . . “autos” 5% of 2013 electric gross margin.
35
Consumers Appears . . . .
Carbon Tonnage Reduction
Million Tons
of CO2
(Preliminary)
25
2005 Baseline
23
21
Clean Power Plan
“Implied”
EPA Target
19
17
Consumers Energy
Projected
emission
level
15
13
2014
2020
2025
2029
2030
. . . . to be in a good carbon position.
36
Generation Strategy: New Supply Sources . . . .
Levelized cost
of new build
(¢/kWh)
New Build
Consumers Energy Sources
25
22¢
20
15¢
15
12¢
11¢
0
6¢
Combined Cycle Gas Plant
Gas price= $3.00
$4.50
8¢
Back
-up
$6.00
7¢
6¢
9¢
Wind
W/ tax
credit
W/o tax
credit
Coal
W/ emission
controls
5.5¢
Palisades
5¢
6¢
10¢
Big 5
6¢
Zeeland
5
5¢
7¢
Back
-up
Cross Winds 
10
Nuclear
Residential Solar
Today Future
$3.00 per $2.00 per
watt
watt?
. . . . combined cycle gas is the most attractive new source of supply.
37
Capacity Diversity . . . .
Oil
6%
Nuclear
8%
Renewables
9%
Pumped
Storage
11%
Oil 6%
2014
Gas
32%
Nuclear
8%
Renewables
3%
Pumped
Storage
11%
Coal
34%
Purchases
3%
2005
Gas
31%
Coal
41%
Renewables
10%
Pumped
Storage
12%
Oil
6%
Nuclear
8%
Coal
24%
2017
Gas
37%
. . . . evolving to cleaner generation while becoming more cost competitive.
38
New Capacity Ops . . . .
Full Year Impact
Replace PPA
With New Build
Customer Bill
(mils)
1,000 MW of
PPA’s expire
Add 1,000 MW
owned capacity
Impact
Investor
(EPS)
Upside:
Capacity Options
- $325
0¢
+ 325

≈ Flat
Incremental Step-up
Not in Plan
+5
+ 5¢
2 points

•
•
•
•
Build - Thetford
Expand - Zeeland
Buy - ?
LT PPA
. . . . add earnings growth, without increasing bills!
39
Operating Cash Flow Growth . . . .
Amount
(bils)
Up $0.5
Billion
Gross operating cash flowa
up $0.1 billion per year
$ 2.5
2.0
$1.8
$1.7
$1.9
$2.0
$2.3
$2.2
$2.1
Interest, working
capital and taxes
$1.55
1.5
$1.45
Pct of Market Cap (as of June 2014)
1.0
Cap Inv
Investment
0.5
OCF
CMS
19%
13%
18%
15%
Peers
16
14
0.0
_____
(0.5)
2013
NOLs & Credits
$0.6
a
Cash flow before dividend
Non-GAAP
2014
2015
2016
2017
2018
2019
$0.4
$0.5
$0.4
$0.2
$0.1
$0
. . . . self-funds investment and strategy.
40
GAAP Reconciliation
Earnings Per Share By Year GAAP Reconciliation
(Unaudited)
2003
2004
2005
2006
2007
2008
($0.30)
$0.64
($0.44)
($0.41)
($1.02)
$1.20
$0.91
$1.28
$1.58
$1.42
$1.66
Electric and gas utility
0.21
(0.39)
-
(0.07)
0.05
0.33
0.03
-
0.17
-
Enterprises
0.74
0.62
0.04
(0.02)
1.25
(0.02)
0.09
(0.03)
(0.11)
(0.01)
*
Corporate interest and other
0.16
(0.03)
0.04
0.27
(0.32)
(0.02)
0.01
*
(0.01)
*
*
(0.16)
(0.08)
0.08
(0.01)
(0.03)
Reported earnings (loss) per share - GAAP
2009
2010
2011
2012
2013
After-tax items:
Discontinued operations (income) loss
0.02
(0.07)
(0.03)
0.40
(*)
-
-
1.82
0.76
0.60
-
-
-
-
-
-
0.16
0.01
-
-
-
-
-
-
-
-
-
$0.81
$0.87
$1.39
$0.57
$0.84
$1.26
$1.36
$1.45
$1.55
$1.66
0.03
$0.90
(0.43)
$0.96
0.51
$1.08
Asset impairment charges, net
Cumulative accounting changes
Adjusted earnings per share, including MTM - non-GAAP
Mark-to-market impacts
Adjusted earnings per share, excluding MTM - non-GAAP
-
NA
NA
$1.21 (a)
NA
NA
NA
NA
NA
*
NA
* Less than $500 thousand or $0.01 per share.
(a) $1.25 excluding discontinued Exeter operations and accounting changes related to convertible debt and restricted stock.
42
CMS Energy
Reconciliation of Gross Operating Cash Flow to GAAP Operating Activities
(unaudited)
(mils)
2013
Consumers Operating Income + Depreciation & Amortization
$
Enterprises Project Cash Flows
Gross Operating Cash Flow
$
Other operating activities including taxes, interest payments and working
capital
Net cash provided by operating activities
1,740
$ 1,810
16
20
1,756
$ 1,830
(335)
$
2014
1,421
2015
$
$
28
$
(380)
$ 1,450
1,877
2016
1,905
1,550
$
34
$
(355)
$
1,959
2017
1,993
1,400
$
52
$
(593)
$
2,065
2018
2,117
1,500
$
55
$
(617)
$
2,186
2019
2,241
53
$
(641)
$
1,600
2,308
2,361
(661)
$
1,700
43

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