CMS Energy : 2023 First Quarter Results and Outlook

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To:	Investment Community	From: CMS Energy Investor Relations
Date:	April 27th, 2023	http://www.cmsenergy.com
Subject:	CMS Energy First Quarter 2023 Results and Outlook

CMS Energy will hold a webcast to discuss its First Quarter 2023 Results and Outlook on Thursday, April 27th at 9:00 a.m. (ET).

To participate in the webcast, go to CMS Energy's home page (www.cmsenergy.com), select "Investor Relations", "Events and Presentations", and "CMS Energy First Quarter 2023 Earnings Call" or click here.

CMS Energy Announces First Quarter Results, Reaffirms 2023

Adjusted EPS Guidance

JACKSON, Mich., April 27, 2023- CMS Energy announced today reported earnings per share of $0.69 for the first quarter of 2023, compared to $1.21 per share for the same quarter in 2022. The company's adjusted earnings per share for the first quarter of 2023 were $0.70, compared to $1.20 per share for the same quarter in 2022, primarily due to unfavorable weather, which reduced sales volumes, and higher service restoration costs attributable to significant storm activity during the quarter.

CMS Energy reaffirmed its 2023 adjusted earnings guidance of $3.06 to $3.12* per share (*See below for important information about non-GAAP measures) and reaffirmed long-term adjusted EPS growth of 6 to 8 percent, with continued confidence toward the high end of the adjusted EPS growth range.

"Despite a historically warm winter and severe ice storms, we remain confident in our ability to deliver on our full year earnings guidance," said Garrick Rochow, President and CEO of CMS Energy and Consumers Energy. "We look forward to working with all stakeholders as we look to improve customer reliability through thoughtful investments in our infrastructure."

CMS Energy (NYSE: CMS) is a Michigan-based energy provider featuring Consumers Energy as its primary business. It also owns and operates independent power generation businesses.

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CMS Energy will hold a webcast to discuss its 2023 first quarter results and provide a business and financial outlook on Thursday, April 27 at 9:00 a.m. (EDT). To participate in the webcast, go to CMS Energy's

homepage(cmsenergy.com) and select "Events and Presentations."

Important information for investors about non-GAAP measures and other disclosures.

This news release contains non-Generally Accepted Accounting Principles (non-GAAP) measures, such as adjusted earnings. 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, 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 company's adjusted earnings should be considered supplemental information to assist in understanding our business results, rather than as a substitute for the reported earnings.

This news release contains "forward-looking statements." The forward-looking statements are subject to risks and uncertainties that could cause CMS Energy's and Consumers Energy's results to differ materially. 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.

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.

For more information on CMS Energy, please visit our website at cmsenergy.com.

To sign up for email alert notifications, please visit the Investor Relations section of our website.

Media Contacts: Katie Carey, 517/740-1739

Investment Analyst Contact: Travis Uphaus, 517/817-9241

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CMS ENERGY CORPORATION

Consolidated Statements of Income

(Unaudited)

	In Millions, Except Per Share Amounts
		Three Months Ended
Operating Revenue		3/31/23			3/31/22			Change
Electric utility	$	1,091	$	1,241	$	(150)
Gas utility		1,119			1,042			77
NorthStar Clean Energy		74			91			(17)
Total operating revenue		2,284			2,374			(90)
Operating Expenses
Fuel for electric generation		137			167			(30)
Purchased and interchange power		341			455			(114)
Purchased power - related parties		19			17			2
Cost of gas sold		547			468			79
Maintenance and other operating expenses		431			334			97
Depreciation and amortization		353			345			8
General taxes		142			132			10
Total operating expenses		1,970			1,918			52
Operating Income (Loss)
Electric utility		103			222			(119)
Gas utility		218			240			(22)
NorthStar Clean Energy		(4)			(5)			1
Other		(3)			(1)			(2)
Total operating income		314			456			(142)
Other Income (Expense)
Nonoperating retirement benefits, net		45			48			(3)
Other income		15			4			11
Other expense		(4)			(4)			-
Total other income		56			48			8
Earnings Before Interest, Taxes, and Other Charges		370			504			(134)
Interest on long-term debt		144			121			23
Interest expense - related parties		3			3			-
Other interest expense		-			1			(1)
Allowance for borrowed funds used during construction		-			(1)			1
Income tax expense		29			39			(10)
Income From Continuing Operations		194			341			(147)
Income from discontinued operations, net of tax		-			4			(4)
Net Income		194			345			(151)
Loss attributable to noncontrolling interests		(10)			(8)			(2)
Net Income Attributable to CMS Energy		204			353			(149)
Preferred stock dividends		2			2			-
Net Income Available to Common Stockholders	$	202	$	351	$	(149)
Reconciling items:
Disposal of discontinued operations gain		-			(5)			5
Tax impact		-			1			(1)
Other exclusions from adjusted earnings		3			(1)			4
Tax impact		(1)			*			(1)
Adjusted Net Income - Non-GAAP	$	204			346		$	(142)
Average Common Shares Outstanding - Diluted		291.2			289.9			1.3
Diluted Earnings Per Average Common Share	$	0.69	$	1.21	$	(0.52)
Reconciling items:
Disposal of discontinued operations gain		-			(0.01)			0.01
Tax impact		-			*			(*)
Other exclusions from adjusted earnings		0.01			(*)			0.01
Tax impact		(*)			*			(*)
Adjusted Diluted Earnings Per Average Common Share - Non-GAAP	$	0.70		$	1.20		$	(0.50)

* Less than $0.5 million or $0.01 per share.

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CMS ENERGY CORPORATION

Summarized Consolidated Balance Sheets

(Unaudited)

					In Millions
			As of
Assets		3/31/23			12/31/22
Current assets
Cash and cash equivalents	$	571	$	164
Restricted cash and cash equivalents		27			18
Other current assets		2,391			3,251
Total current assets		2,989			3,433
Non-current assets
Plant, property, and equipment		23,003			22,713
Other non-current assets		5,394			5,207
Total Assets	$	31,386		$	31,353
Liabilities and Equity
Current liabilities (1)	$	1,509	$	1,866
Non-current liabilities (1)		7,741			7,583
Capitalization
Debt and finance leases (excluding securitization debt) (2)		14,314			14,139
Preferred stock and securities		224			224
Noncontrolling interests		572			580
Common stockholders' equity		6,856			6,791
Total capitalization (excluding securitization debt)		21,966			21,734
Securitization debt (2)		170			170
Total Liabilities and Equity	$	31,386		$	31,353

1. Excludes debt and finance leases.
2. Includes current and non-current portions.

CMS ENERGY CORPORATION

Summarized Consolidated Statements of Cash Flows

(Unaudited)

					In Millions
		Three Months Ended
		3/31/23			3/31/22
Beginning of Period Cash and Cash Equivalents, Including Restricted Amounts	$	182	$	476
Net cash provided by operating activities		1,040			707
Net cash used in investing activities		(651)			(539)
Cash flows from operating and investing activities		389			168
Net cash provided by (used in) financing activities		27			(170)
Total Cash Flows	$	416	$	(2)
End of Period Cash and Cash Equivalents, Including Restricted Amounts
$	598	$	474

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CMS ENERGY CORPORATION

Selected Financial Data

(Unaudited)

								In Millions
			Twelve Months Ended
EBIT - Non-GAAP(1)		3/31/23			12/31/22			3/31/22
Consolidated	$	1,311	$	1,441		$	1,381
Consumers Energy		1,308			1,441			1,403
Depreciation and Amortization
Consolidated	$	1,134	$	1,126		$	1,121
Consumers Energy		1,096			1,088			1,084
EBITDA - Non-GAAP(1)
Consolidated	$	2,445	$	2,567		$	2,502
Consumers Energy		2,404			2,529			2,487
Dividends and Other Distributions From Subsidiaries	$	781	$	769		$	1,592
Interest Expense, Net
Consolidated	$	542	$	519		$	500
Energy parent		181			181			182
Consumers Energy		359			335			312
								In Millions
					As of
		3/31/23			12/31/22			3/31/22
Book Value Per Share	$	23.50	$	23.31		$	22.85
Common Shares Outstanding - End of Period		291.7			291.3			290.1
Average Common Shares Outstanding
Basic		290.7			289.5			289.3
Diluted		291.2			290.0			289.9
Debt (2)
Energy parent	$	3,931	$	3,930		$	3,928
NorthStar Clean Energy		208			122			74
Consumers Energy (excluding securitization bonds)		10,175			10,087			8,273
Consolidated (excluding securitization bonds)		14,314			14,139			12,275
Securitization bonds		170			170			198
Consolidated	$	14,484		$	14,309		$	12,473
Unrestricted Cash and Cash Equivalents
Energy parent	$	132	$	36		$	410
Consumers Energy		317			43			12
CMS Treasury Services		50			39			1
Other		72			46			23
Consolidated	$	571		$	164		$	446
Consumers Energy
Regulated Common Equity Ratio (13-Month Average)
Electric		43.0%			43.5%			43.2%
Gas		43.0%			43.5%			43.2%
Regulated Rate Base (13-Month Average, in Millions)
Electric (3)	$	13,970	$	13,796		$	13,306
Gas		8,987			8,668			8,002
Regulated Return on Average Common Equity (12-Month Ended)
Electric (3)		7.6%			9.3%			10.4%
Gas		8.1%			10.0%			9.9%

1. EBIT (non-GAAP) equals net income available to common stockholders + income taxes + interest charges + noncontrolling interests + discontinued operations + writedowns + impairments + losses (gains) on asset sales + accounting changes. EBITDA (non-GAAP) equals EBIT + depreciation and amortization.
2. Includes current maturities, leases and notes payable.
3. Includes Renewable Portfolio Standard (RPS) renewables rate base of ~$1.2 billion in total.