2023 Year-End Earnings Call
February 1, 2024
2
Enter “so what” if necessary – Century Gothic, Bold, Size 18 or smaller
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 most recent Form 10-K and
as updated in reports CMS Energy and Consumers Energy file with the Securities and Exchange Commission. 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.
Investors and others should note that CMS Energy routinely posts important information on its website and considers the Investor Relations section, www.cmsenergy.com/investor-
relations, a channel of distribution.
Presentation endnotes are included after the appendix.
2
3
Investment Thesis . . .
. . . is simple, clean and lean.
Infrastructure
Renewal
Constructive
Legislation
Strong Cash Flow
& Balance Sheet
Clean Energy
Leader
Attractive &
Diversified Territory
Over two decades of industry-leading
financial performance
Affordable
Prices
Industry-leading net zero commitments
Excellence through the
Top-tier regulatory jurisdiction
a
Premium total shareholder return
6% to 8% adjusted EPS growth + ~3% dividend yield
Presentation endnotes are included after the appendix.
✓
✓
✓
✓
4
2023 Successes . . .
. . . delivering across the Triple Bottom Line.
• Delivered adjusted EPS of $3.11 –
toward the high end of our guidance
range
• Increased annual dividend per share
to $2.06, 18
th
increase in as many years
• Countermeasured nearly $300M of
weather-related financial headwinds
• Settled 2
nd
consecutive gas rate case
(4
th
consecutive regulatory
proceeding)
• Named TRENDSETTER company by
CPA-Zicklin Index for corporate
political disclosure and accountability
• Began operations of 180 MW of new
solar generation at NorthStar
Profit
• Recipient of Secretary of Defense
Employer Support Freedom Award
• Filed $7B Electric Reliability Roadmap
highlighting 5-year pathway to
improve reliability and resiliency
• >$125M of customer assistance to help
keep bills affordable
• ~$161M in customer benefits from
owned generation vs. MISO market
• ~360 MW of incremental load, adding
~5K jobs and $6B of investment in MI
• Ensured resource adequacy through
the acquisition of ~1.2 GW of an
existing natural gas plant
• Retired ~515 MW of coal at Karn 1&2
from service – reducing coal and
carbon footprint (~2% of total PP&E)
• >$250M of gas infrastructure capex
resulting in >530MT of methane
reduction
• Grew Voluntary Green Pricing Program
to ~365 MW (of 1 GW approved)
• Increased Renewable Energy Portfolio
with 201 MW Heartland wind farm
• Met all requirements for inclusion in the
MSCI ESG Leaders indexes (only
vertically integrated utility)
People
Planet
5
New Michigan Energy Legislation . . .
. . . good for all stakeholders & accelerates the Clean Energy Transformation.
Key Items Prior Law New Law
a
•
Renewable Portfolio Standard
• Next Renewable Energy Plan (REP) filing
(H2 2024)
15% by 2021
in Michigan
60% by 2035
in MISO
(50% by 2030)
•
Clean Energy Standard
(incl. renewables, gas w/ CCS, or nuclear)
• Next Integrated Resource Plan filing
(2026/2027)
NA
100% by 2040
(80% by 2035)
•
Financial Compensation Mechanism
(FCM) on PPAs
After-tax WACC on
regulatory capital
structure
(~5.6%)
Pre-tax WACC on
permanent capital
structure
(~9%)
•
Energy Efficiency (EE) Incentive
• Annual energy waste reduction
20% incentive /
up to 2% YoY
load reduction
25% incentive /
>2.17% YoY
load reduction
•
2.5 GW Battery Storage State Target
NA
(550 MW planned
by 2040)
800 MW by 2030
✓Maintains customer
affordability
✓Ensures continued
resource adequacy
✓Decarbonizes
electric supply
✓Enhances certainty of
recovery
✓Enhanced FCM &
EE incentives
✓Increased capital
investment opportunity
Benefits
Presentation endnotes are included after the appendix.
6
2024
Michigan’s Strong Regulatory Environment . . .
. . . provides constructive outcomes and forward-looking visibility.
2023
Renewable Energy Plan (REP)
Electric
Dec. 15
th
: Filed
Rate Case
$136M 10.25%
ROE
U-21490
H2 2024: File updated REP
to meet 60% renewable
energy by 2035
Supportive Energy Policy
investments
✓ Forward-looking test
years/earn authorized
ROEs
✓ 10-month rate cases
✓ Monthly fuel adjustment
trackers (PSCR/GCR)
• Supportive incentives
✓ Constructive ROEs for
Renewable Portfolio
Standard
✓ Energy efficiency incentive
✓ FCM adder on PPAs
• Appointed commissioners
Gas
Q4 2024:
Expected
Final Order
Enhanced w/ 2023 Energy Legislation
Q1 2024:
Expected
Final Order
Q2 2024:
File New
Rate Case
7
43%
20%
37%
Updated Customer Investment Plan . . .
. . . delivers benefits for customers and investors.
New Utility Investment Plan Rate Base Growth
Presentation endnotes are included after the appendix.
Clean Energy Generation Electric Distribution & Other Gas Utility
$17B
’24 – ’28
63%
Electric utility
investment
✓EE incentive moving
from 20% to 22.5%
(at 2% YoY load
reduction)
✓~9% FCM on new
PPAs for clean
energy contracts
✓NorthStar – DIG
re-contracting
opportunities
Other Growth Drivers
b
2023 2028
$24.6B
$35.2B
~7½%/yr
a
~40% of investments support the Clean Energy Transformation
8
Commentary
Amount
Financial Results & Outlook . . .
. . . reflect strong growth and build momentum for 2024 and beyond.
Long-Term Outlook
2024 Full-Year Outlook
2023 Full-Year Results
Adjusted EPS
$3.11
Adjusted EPS Guidance
Annual Dividend Per Share
$3.06 – $3.12
$2.06
Toward the high end
Up 11¢
Adjusted EPS Growth
Dividend Per Share Growth
Utility Capital Plan ($B)
a
+6% to +8% Toward the high end
~60% payout over time
Up $1.5 vs prior plan
$17
$3.29 – $3.35
Delivered toward the
high end
+6% to +8%
Presentation endnotes are included after the appendix.
9
2022 2023
Reported EPS
$0.58 $1.05
Adjustments
a
0.02 --
Adjusted EPS
a
$0.60
Adjusted EPS by SegmentFull Year
2023 Results . . .
Fourth Quarter
. . . reflect adjusted EPS growth toward the high end.
2022 2023
Reported EPS
$2.85 $3.01
Adjustments
a
0.04 0.10
Adjusted EPS
a
$2.89 35X
Utility
NorthStar
Parent
Total Adjusted EPS
$1.05
Presentation endnotes are included after the appendix.
2023
$3.07
0.23
(0.19)
$3.11
$3.11
10
Actual
2023 Objectives Achieved . . .
. . . delivering benefits for customers AND investors.
Presentation endnotes are included after the appendix.
Adjusted EPS guidance
DPS growth guidance
Target credit ratings
Utility investment ($B)
Planned equity issuance ($M)
$3.06 – $3.12
+6% to +8%
Solid
investment grade
$3.7
Settle ~$439M of contracted
equity forwards (Covert)
Objectives
$3.11
$2.06 (up 11¢)
Solid
investment grade
$3.3
Settled ~$444M
b
of contracted
equity forwards (Covert)
FFO/Debt target: Mid-teens
a
FFO/Debt target: Mid-teens
a
Toward the high end
✓
✓
✓
✓
✓
11
2024 Guidance Offers Continued Growth . . .
. . . compounding off 2023 actuals.
Utility
NorthStar
Parent
Consolidated EPS
$3.74 – $3.80
0.16 – 0.18
(0.61) – (0.63)
$3.29 – $3.35
Adjusted EPS
Toward the high end
12
2024 Adjusted EPS Growth Range . . .
. . . managing through COVID-19 risks.
2023 Normal
Weather
Rates &
Investment
Cost Savings
& Productivity
(incl. Storms)
Usage,
Non-Utility,
Tax & Other
2024
(58)¢ - (64)¢
23¢
16¢
43¢
$3.11
a
. . . reflects another year of premium growth.
Presentation endnotes are included after the appendix.
$3.29 - $3.35
a
13
Near- and Long-Term Objectives . . .
. . . provide sustainable benefits for customers AND investors.
Presentation endnotes are included after the appendix.
Adjusted EPS guidance
DPS growth guidance
Target credit ratings
Utility investment ($B)
Planned equity issuance ($M)
$3.29 – $3.35
+6% to +8%
Solid
investment grade
$3.3
None
2024
+6% to +8%
+6% to +8%
Solid
investment grade
$17
No equity until 2025
Long-Term Plan
FFO/Debt target: Mid-teens
a
FFO/Debt target: Mid-teens
a
Up to $350M/yr in 2025 - 2028
Toward the high end
2024 - 2028
Toward the high end
Targeting ~60% payout ratio
14
Plan YTD
($M) ($M)
Consumers Energy:
First Mortgage Bonds ~$1,100 $600
CMS Energy:
Contracted Equity (issued) ~266
~266
Retirements (incl. term loans):
Consumers Energy 302 --
CMS Energy 250 250
Existing Facilities
$1,100M
(Dec-2027)
$550M
(Dec-2027)
$250M
(Nov-2025)
Consumers
Energy
CMS
Energy
Financings
a
2024 Planned Financings . . .
. . . fund customer investments and provide ample liquidity.
Presentation endnotes are included after the appendix.
~$1.9B
b
of net liquidity
5-yr
4.60%
✓
~$70/sh
✓
15
2024 Sensitivities . . .
. . . reflect effective risk mitigation.
Presentation endnotes are included after the appendix.
Full-Year Impact
Sensitivity
Adj. EPS
OCF
Sales
a
Electric (~37,000 GWh)
Gas (~311 Bcf)
+
+
1%
1
+
+
(¢)
7
4
+
+
($M)
27
15
Gas Prices
+
50¢
+
0
+
60
Utility Earned ROE
Electric
Gas
+
+
10 bps
10
+
+
2
1
+
+
8
6
Interest Rates
+
25 bps 1 <1
Effective Tax Rate
(18%)
+
100 bps
3 0
+
+
+
+
Electric
Residential
Commercial
Industrial
4¢
2½
3¢
(1% Full Year in Volume)
2024 Adj. EPS Sensitivities
Gas
½
~½
~½
<
16
Recession
Industry-Leading Financial Performance . . .
. . . for over two decades, regardless of conditions.
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024+
Recession
Adjusted
EPS
a
Dividend
+6% to +8%
Weather
Help
Hurt
Mild
summer
Hot
summer
Warm
winter
Mild
summer
Cold
winter
Summer-
less
Warm
winter
Warm
winter
Hot
summer
Storms Hot
summer
Storms Hot
summer
Governor (D) Governor (R) Governor (D)
Commission (D) Commission (D) Commission (R) Commission (I)
Commission (D)
Dave Joos John Russell Patti Poppe
K.
Whipple
Recession /
Pandemic
Presentation endnotes are included after the appendix.
Mild w/
storms
Garrick Rochow
Hot
summer
Hot
summer
Warm
winter
Mild
summer
Polar
vortex
Cold Feb
warm Dec
Mild w/
storms
17
17
Q&A
Thank You!
18
18
Appendix
19
.
Strong Balance Sheet . . .
Consumers Energy
CMS Energy
Senior Secured
Commercial Paper
Outlook
Senior Unsecured
Junior Subordinated
Outlook
Last Review
A
A-2
Stable
BBB
BBB-
Stable
Aug. 2023
A1
P-2
Stable
Baa2
Baa3
Stable
May 2023
A+
F-2
Stable
BBB
BB+
Stable
Jan. 2023
S&P Moody’s Fitch
. . . maintains credit metrics and solid investment-grade ratings.
✓ ✓ ✓
✓ Forward-looking recovery
✓ Constructive rate construct
✓ Strong operating cash flow
generation
✓ 100% fixed rate debt
✓ Hybrid debt (w/equity credit)
✓ Limited near-term maturities
Key Strengths
20
2023 Adjusted EPS . . .
. . . managing through COVID-19 risks.
2022 Weather Rates &
Investment
Cost Savings
& Productivity
(inlc. Storms)
Usage,
Non-Utility,
Tax & Other
2023
68¢
19¢
(2)¢
(63)¢
$2.89
a
. . . reflects another year of premium growth.
$3.11
a
Presentation endnotes are included after the appendix.
21
0
10
20
30
40
50
60
70
80
Historic 2024E 2026+ 2026+
DIG (750 MW) & Peakers (200 MW) . . .
. . . supports the Plan with future upside opportunities.
~$55M
~$30M
~$35M
Pre-Tax Income
(M)
Capacity Price ($kw-mon) ~$3.00 ~$3.25 $5.00 $7.50
Capacity Available 0% 0% >30% >30%
$
Available
capacity
Available
capacity
~$65M
Opportunities
22
Utility Sales Remain Strong . . .
. . . with supportive economic backdrop in Michigan.
Weather-Normalized Electric Deliveries
a
Residential Commercial Industrial Total
(0.2)%
1.1%
(0.8)%
b
0.2%
b
Presentation endnotes are included after the appendix.
(2023 vs. 2022)
Economic Development
Electric Customers
Gas Customers
>½%
>½%
(5-Yr Avg. Customer Count)
Residential Customer Growth
2018 – 2023
2016 2017 2018 2019 2020 2021 2022 2023
105 MW
126 MW
75 MW
45 MW
101 MW
69 MW
Attracted >1,000 MW of
new or expanding
business to our service
territory since 2015
• $1B of state incentives
economic development
rate
Policy Support
359 MW
127 MW
23
Operating Cash Flow . . .
. . . remains strong and supports our capital plan.
Presentation endnotes are included after the appendix.
2024
2025
2026
2027
2028
NOLs
a
& CreditsAdjusted Operating Cash Flow
$0.4
$0.4
$0.4
$0.4
$0.3
Amount
($B)
Year
>$1½B
>$2½B
2019 - 2023
Average
2024 - 2028 Plan
Average
~$13.2B in
aggregate
~$8.6B in
aggregate
24
Utility Customer Investment Plan
Enter “so what” if necessary – Century Gothic, Bold, Size 18 or smaller
24
Clean Energy Generation
Electric Distribution & Other
Gas Utility
Total
Depreciation & Amortization
a
$0.7
1.4
1.2
$3.3
$1.2
2028
$0.7
1.4
1.3
$3.4
$1.4
2025 2026 2027 Total2024
$0.5
1.4
1.2
$3.1
$1.5
$0.7
1.3
1.3
$3.3
$1.4
$0.8
1.8
1.3
$3.9
$1.3
5-Year Plan
($B)
63%
Electric utility
investment
$3.4
7.3
6.3
$17.0
$6.8
Presentation endnotes are included after the appendix.
25
25
Endnotes
26
Presentation Endnotes
26
Slide 3:
a
RRA state regulatory energy rankings, May 2023. Regulatory Research Associates, a group within S&P Global Commodity Insights.
Slide 5:
a
New energy law effective June 1, 2024
Slide 7:
a
Assumes $24.6B rate base in 2023, $35.2B in 2028, CAGR
b
Over plan period years 2024-2028
Slide 8:
a
$17B utility capital investment plan (2024-2028), up $1.5B from prior plan (2023-2027)
Slide 9:
a
See GAAP reconciliation on slide 30
Slide 10:
a
Mid-teens, as calculated by rating agencies
b
Settled equity of $178 million in November 2023 and $266 million in January 2024
Slide 12:
a
Adjusted EPS
Slide 13:
a
Mid-teens, as calculated by rating agencies
Slide 14:
a
Excludes tax-exempt remarketing in October 2024
b
$1,708M in unreserved revolvers + $191M of unrestricted cash; excludes cash unavailable for
debt retirement such as held at NorthStar subs
Slide 15:
a
Reflects 2024 sales forecast; weather-normalized
Slide 16:
a
Excludes discontinued operations
Slide 20:
a
Adjusted EPS
Slide 22:
a
2023 year over year change in GWh, excludes ROA and other
b
Excludes one large, low-margin industrial customer
Slide 23:
a
After-tax
Slide 24:
a
Includes securitization amortization of ~$100M/yr and regulatory asset amortization of ~$100M/yr
27
27
GAAP Reconciliation
CMS Energy provides historical financial results on both a reported (GAAP) and adjusted (non-GAAP) basis and provides forward-looking guidance on an
adjusted basis. During an oral presentation, references to “earnings” are on an adjusted basis. All references to net income refer to net income available to
common stockholders and references to earnings per share are on a diluted basis. Adjustments could include items such as discontinued operations, asset sales,
impairments, restructuring costs, business optimization initiative, changes in accounting principles, voluntary separation program, changes in federal tax policy,
regulatory items from prior years, unrealized gains or losses from mark-to-market adjustments, recognized in net income related to NorthStar Clean Energy’s
interest expense, or other items. Management views adjusted earnings as a key measure of the company’s present operating financial performance and uses
adjusted earnings for external communications with analysts and investors. Internally, the company uses adjusted earnings to measure and assess performance.
Because the company is not able to estimate the impact of specific line items, which have the potential to significantly impact, favorably or unfavorably, the
company's reported earnings in future periods, the company is not providing reported earnings guidance nor is it providing a reconciliation for the comparable
future period earnings. The adjusted earnings should be considered supplemental information to assist in understanding our business results, rather than as a
substitute for the reported earnings.
28
CMS ENERGY CORPORATION
Reconciliation of GAAP Cash Flows from Operating Activities to
Non-GAAP Adjusted Cash Flows from Operating Activities
(Unaudited)
2019 2020 2021 2022 2023
Cash Flows from Operating Activities 1,790$ 1,276$ 1,819$ 855$ 2,309$
Adjustments - Discretionary Pension Contributions - 700 - - -
Adjustments - EnerBank Operating Cash Flows (89) (91) 24 - -
Non-GAAP Adjusted Cash Flows from Operating Activities 1,701$ 1,885$ 1,843$ 855$ 2,309$
29
CMS ENERGY CORPORATION
Reconciliation of GAAP Cash Flows from Operating Activities to Non-GAAP Funds from Operations
Reconciliation of GAAP Indebtedness to Non-GAAP Adjusted Debt
(Unaudited)
In millions
Year Ended
12/31/2023
FUNDS FROM OPERATIONS
Net Cash Provided by Operating Activities 2,309$
Reconciling Items:
Changes in assets and liabilities
Accounts receivable and accrued revenue (241)
Inventories (185)
Accounts payable and accrued rate refunds 136
Other current assets and liabilities 21
Adjusted operating cash flow; pre-working capital 2,040$
50% of interest charges on Junior subordinated notes 52
FFO - Non-GAAP 2,092$
ADJUSTED DEBT
Indebtedness
Current portion of long-term debt and finance leases
980$
Notes payable 93
Long-term debt 14,508
Non-current portion of finance leases 62
Total Indebtedness 15,643$
50% of Junior subordinated notes (1,005)$
Par call - CMS Parent senior notes (250)
Adjusted Debt - Non-GAAP 14,388$
Electric Utility
Reported net income per share $ 0.50 $ 0.23 $ 1.89 $ 1.96
Reconciling items:
Other exclusions from adjusted earnings 0.01 0.02 0.02 0.02
Tax impact (0.01) (0.01) (0.01) (0.01)
Voluntary separation program * * 0.07 0.03
Tax impact (*) (*) (0.02) (0.01)
Adjusted net income per share – non-GAAP $ 0.50 $ 0.24 $ 1.95 $ 1.99
Gas Utility
Reported net income per share $ 0.46 $ 0.48 $ 1.08 $ 1.30
Reconciling items:
Other exclusions from adjusted earnings * 0.01 0.01 0.01
Tax impact (*) (*) (*) (*)
Voluntary separation program * * 0.04 0.01
Tax impact (*) (*) (0.01) (*)
Adjusted net income per share – non-GAAP $ 0.46 $ 0.49 $ 1.12 $ 1.32
NorthStar Clean Energy
Reported net income per share $ 0.14 $ 0.03 $ 0.23 $ 0.12
Reconciling items:
Other exclusions from adjusted earnings - - - (*)
Tax impact - - - *
Voluntary separation program - - - *
Tax impact - - - (*)
Adjusted net income per share – non-GAAP $ 0.14 $ 0.03 $ 0.23 $ 0.12
Corporate Interest and Other
Reported net loss per share $ (0.05) $ (0.16) $ (0.19) $ (0.54)
Reconciling items:
Other exclusions from adjusted earnings - * - *
Tax impact - (*) - (*)
Adjusted net loss per share – non-GAAP $ (0.05) $ (0.16) $ (0.19) $ (0.54)
Discontinued Operations
Reported net income per share $ - $ - $ - $ 0.01
Reconciling items:
Disposal of discontinued operations (gain) loss * - (*) (0.01)
Tax impact (*) - * *
Adjusted net income per share – non-GAAP $ - $ - $ - $ -
Consolidated
Reported net income per share $ 1.05 $ 0.58 $ 3.01 $ 2.85
Reconciling items:
Disposal of discontinued operations (gain) loss * - (*) (0.01)
Tax impact (*) - * *
Other exclusions from adjusted earnings 0.01 0.03 0.03 0.03
Tax impact (0.01) (0.01) (0.01) (0.01)
Voluntary separation program * * 0.11 0.04
Tax impact (*) (*) (0.03) (0.01)
Adjusted net income per share – non-GAAP $ 1.05 $ 0.60 $ 3.11 $ 2.89
Average Common Shares Outstanding – Diluted 292.7 290.1 291.7 290.0
* Less than $0.01 per share.
In Millions, Except Per Share Amounts
Three Months Ended
Twelve Months Ended
12/31/23
12/31/22
12/31/23
12/31/22
31
CMS ENERGY CORPORATION
Reconciliation of GAAP Net Income to Non-GAAP Adjusted Net Income
(Unaudited)
Net Income Available to Common Stockholders $ 306 $ 168 $ 877 $ 827
Reconciling items:
Disposal of discontinued operations (gain) loss * - (1) (5)
Tax impact (*) - * 1
Other exclusions from adjusted earnings** 3 9 9 8
Tax impact (1) (2) (3) (2)
Voluntary separation program * 1 33 12
Tax impact (*) (*) (8) (3)
Adjusted net income – non-GAAP $ 308 $ 176 $ 907 $ 838
Average Common Shares Outstanding - Diluted 292.7 290.1 291.7 290.0
Diluted Earnings Per Average Common Share
Reported net income per share $ 1.05 $ 0.58 $ 3.01 $ 2.85
Reconciling items:
Disposal of discontinued operations (gain) loss * - (*) (0.01)
Tax impact (*) - * *
Other exclusions from adjusted earnings** 0.01 0.03 0.03 0.03
Tax impact (0.01) (0.01) (0.01) (0.01)
Voluntary separation program * * 0.11 0.04
Tax impact (*) (*) (0.03) (0.01)
Adjusted net income per share – non-GAAP $ 1.05 $ 0.60 $ 3.11 $ 2.89
* Less than $0.5 million or $0.01 per share.
**
In Millions, Except Per Share Amounts
Management views adjusted (non-Generally Accepted Accounting Principles) earnings as a key measure of the Company's present operating financial performance and uses adjusted
earnings for external communications with analysts and investors. Internally, the Company uses adjusted earnings to measure and assess performance. Adjustments could include
items such as discontinued operations, asset sales, impairments, restructuring costs, business optimization initiative, changes in accounting principles, voluntary separation program,
changes in federal tax policy, regulatory items from prior years, unrealized gains or losses from mark-to-market adjustments, recognized in net income related to NorthStar Clean
Energy’s interest expense, or other items. The adjusted earnings should be considered supplemental information to assist in understanding our business results, rather than as a
substitute for reported earnings.
Three Months Ended
Twelve Months Ended
12/31/23
12/31/22
12/31/23
12/31/22
Includes restructuring costs, business optimization initiative, and unrealized gains or losses from mark-to-market adjustments, recognized in net income related to NorthStar Clean
Energy's interest expense.
32
CMS ENERGY CORPORATION
Reconciliation of GAAP Net Income to Non-GAAP Adjusted Net Income
by Quarter
(Unaudited)
* Less than $0.5 million or $0.01 per share.
Net Income Available to Common Stockholders $ 202 $ 195 $ 174 $ 306
Reconciling items:
Electric utility and gas utility 3 30 6 3
Tax impact (1) (7) (2) (1)
NorthStar Clean Energy - - - -
Tax impact - - - -
Corporate interest and other - - - -
Tax impact - - - -
Disposal of discontinued operations (gain) loss - (1) - *
Tax impact - * - (*)
Adjusted Net Income – Non-GAAP $ 204 $ 217 $ 178 $ 308
Average Common Shares Outstanding – Diluted 291.2 291.3 291.4 292.7
Diluted Earnings Per Average Common Share $ 0.69 $ 0.67 $ 0.60 $ 1.05
Reconciling items:
Electric utility and gas utility 0.01 0.10 0.01 0.01
Tax impact (*) (0.02) (*) (0.01)
NorthStar Clean Energy - - - -
Tax impact - - - -
Corporate interest and other - - - -
Tax impact - - - -
Disposal of discontinued operations (gain) loss - (*) - *
Tax impact - * - (*)
Adjusted Diluted Earnings Per Average Common Share – Non-GAAP $ 0.70 $ 0.75 $ 0.61 $ 1.05
In Millions, Except Per Share Amounts
2023
1Q
2Q
3Q
4Q
33
CMS ENERGY CORPORATION
Reconciliation of GAAP Net Income to Non-GAAP Adjusted Net Income
by Quarter
(Unaudited)
* Less than $0.5 million or $0.01 per share.
Net Income Available to Common Stockholders $ 351 $ 145 $ 163 $ 168
Reconciling items:
Electric utility and gas utility - 11 (*) 10
Tax impact - (3) * (2)
NorthStar Clean Energy (1) (*) - -
Tax impact * * - -
Corporate interest and other - * * *
Tax impact - (*) (*) (*)
Disposal of discontinued operations (gain) loss (5) * - -
Tax impact 1 (*) - -
Adjusted Net Income – Non-GAAP $ 346 $ 153 $ 163 $ 176
Average Common Shares Outstanding – Diluted 289.9 290.1 290.1 290.1
Diluted Earnings Per Average Common Share $ 1.21 $ 0.50 $ 0.56 $ 0.58
Reconciling items:
Electric utility and gas utility - 0.04 (*) 0.03
Tax impact - (0.01) * (0.01)
NorthStar Clean Energy (*) (*) - -
Tax impact * * - -
Corporate interest and other - * * *
Tax impact - (*) (*) (*)
Disposal of discontinued operations (gain) loss (0.01) * - -
Tax impact * (*) - -
Adjusted Diluted Earnings Per Average Common Share – Non-GAAP $ 1.20 $ 0.53 $ 0.56 $ 0.60
2022
1Q
2Q
3Q
4Q
In Millions, Except Per Share Amounts
