2021 Third Quarter Results and Outlook

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To:	Investment Community	From: CMS Energy Investor Relations
Date:	October 28, 2021	http://www.cmsenergy.com
Subject:	CMS Energy 2021 Third Quarter Results and Outlook

CMS Energy will hold a webcast to discuss its 2021 Third Quarter Results and Outlook on Thursday, October 28 at 9:30 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 Third Quarter 2021 Earnings Call" or click here.

CMS Energy Announces Third Quarter Results with Confidence

Toward the High End of 2021 Guidance

JACKSON, Mich., Oct. 28, 2021 - CMS Energy announced today reported earnings per share from continuing operations of $0.54 for the third quarter of 2021, compared to $0.72 per share for the same quarter in 2020, which exclude the discontinued operations of EnerBank USA. The company's adjusted earnings per share from continuing operations were $0.54 for the third quarter of 2021, compared to $0.73 per share for the same quarter in 2020, which exclude the discontinued operations of EnerBank.

"CMS Energy's strong execution in 2021, including closing the sale of EnerBank on October 1 for over $1 billion, has positioned the company well for long-term success to the benefit of customers, investors and the communities we serve. We are actively redeploying the proceeds from the transaction into our core utility business to fund key initiatives like grid hardening and our clean energy transformation," said Garrick Rochow, President and CEO of CMS Energy and Consumers Energy.

CMS Energy raised its full-year 2021 adjusted earnings from continuing operations guidance to $2.63 to $2.65 per share, from $2.61 to $2.65 per share* (*See below for important information about non-GAAPmeasures). CMS Energy also reaffirmed 2022 adjusted earnings guidance of $2.85 - $2.87 per share and long-termadjusted EPS growth of 6 to 8 percent, with continued confidence toward the high end of the EPS growth range.

CMS Energy (NYSE: CMS) is a Michigan-based energy company 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 2021 third quarter results and provide a business and financial outlook on October 28 at 9:30 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 and adjusted earnings per share from continuing operations. All references to net income refer to net income available to common stockholders. All references to reported earnings per share from continuing operations refer to Income from continuing operations per average common share available to common stockholders on a diluted basis. Adjustments could include items such as discontinued operations, asset sales, impairments, restructuring costs, 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 CMS Enterprises' 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 Contact: Katie Carey, 517-740-1739

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

													Page 3 of 15
CMS ENERGY CORPORATION
Consolidated Statements of Income
(Unaudited)
										In Millions, Except Per Share Amounts
		Three Months Ended				Nine Months Ended
Operating Revenue		9/30/21			9/30/20			Change			9/30/21			9/30/20			Change
Electric utility	$	1,419	$	1,257		$	162	$	3,713	$	3,307	$	406
Gas utility		225			193			32			1,361			1,217			144
Enterprises		81			57			24			222			167			55
Total operating revenue		1,725			1,507			218			5,296			4,691			605
Operating Expenses
Fuel for electric generation		184			108			76			438			274			164
Purchased and interchange power		462			430			32			1,230			1,149			81
Purchased power - related parties		21			13			8			56			45			11
Cost of gas sold		57			35			22			432			390			42
Maintenance and other operating expenses		410			281			129			1,076			885			191
Depreciation and amortization		250			226			24			832			763			69
General taxes		81			74			7			290			262			28
Total operating expenses		1,465			1,167			298			4,354			3,768			586
Operating Income (Loss)
Electric utility		268			320			(52)			694			677			17
Gas utility		(3)			18			(21)			258			237			21
Enterprises		(4)			3			(7)			(4)			13			(17)
Other		(1)			(1)			-			(6)			(4)			(2)
Total operating income		260			340			(80)			942			923			19
Other Income (Expense)
Interest income		-			1			(1)			2			3			(1)
Interest income - related parties		-			-			-			-			7			(7)
Allowance for equity funds used during construction		2			1			1			5			4			1
Income (loss) from equity method investees		4			-			4			8			1			7
Nonoperating retirement benefits, net		40			29			11			121			90			31
Other income		1			1			-			7			3			4
Other expense		(3)			(4)			1			(7)			(9)			2
Total other income		44			28			16			136			99			37
Earnings Before Interest, Taxes, and Other Charges		304			368			(64)			1,078			1,022			56
Interest on long-term debt		120			124			(4)			359			361			(2)
Interest expense - related parties		3			3			-			9			9			-
Other interest expense		3			4			(1)			8			10			(2)
Allowance for borrowed funds used during construction		(1)			(1)			-			(2)			(2)			-
Income tax expense		26			40			(14)			90			88			2
Income From Continuing Operations		153			198			(45)			614			556			58
Income from discontinued operations, net of tax		30			12			18			82			34			48
Net Income		183			210			(27)			696			590			106
Loss attributable to noncontrolling interests		(6)			(8)			2			(18)			(7)			(11)
Net Income Attributable to CMS Energy		189			218			(29)			714			597			117
Preferred stock dividends		3			-			3			3			-			3
Net Income Available to Common Stockholders	$	186	$	218		$	(32)	$	711	$	597	$	114
Reconciling items:
Disposal of discontinued operations loss		3			-			3			8			-			8
Tax impact		(1)			-			(1)			(2)			-			(2)
Discontinued operations income		(42)			(16)			(26)			(115)			(44)			(71)
Tax impact		10			4			6			27			10			17
Other exclusions from adjusted earnings		(*)			4			(4)			(1)			11			(12)
Tax impact		*			(1)			1			*			(2)			2
Tax reform		-			-			-			-			(9)			9
Voluntary separation program		-			*			(*)			-			11			(11)
Tax impact		-			(*)			*			-			(3)			3
Adjusted Income from Continuing Operations - Non-GAAP	$	156		$	209		$	(53)		$	628		$	571		$	57
Average Common Shares Outstanding
Basic		289.1			285.6			3.5			288.9			284.8			4.1
Diluted		289.6			286.9			2.7			289.4			286.3			3.1
Diluted Earnings Per Average Common Share	$	0.64	$	0.76		$	(0.12)	$	2.46	$	2.09	$	0.37
Reconciling items:
Disposal of discontinued operations loss		0.01			-			0.01			0.03			-			0.03
Tax impact		(*)			-			(*)			(0.01)			-			(0.01)
Discontinued operations income		(0.14)			(0.05)			(0.09)			(0.39)			(0.15)			(0.24)
Tax impact		0.03			0.01			0.02			0.09			0.03			0.06
Other exclusions from adjusted earnings		(*)			0.01			(0.01)			(*)			0.03			(0.03)
Tax impact		*			(*)			*			*			(0.01)			0.01
Tax reform		-			-			-			-			(0.03)			0.03
Voluntary separation program		-			*			(*)			-			0.04			(0.04)
Tax impact		-			(*)			*			-			(0.01)			0.01
Adjusted Income from Continuing Operations Per Average Common Share - Non-GAAP	$	0.54		$	0.73		$	(0.19)		$	2.18		$	1.99		$	0.19

* 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		9/30/21			12/31/20
Current assets
Cash and cash equivalents	$	102	$	32
Restricted cash and cash equivalents		30			17
Assets held for sale		494			429
Other current assets		1,851			1,926
Total current assets		2,477			2,404
Non-current assets
Plant, property, and equipment		21,934			21,017
Assets held for sale		2,606			2,680
Other non-current assets		3,496			3,565
Total Assets	$	30,513		$	29,666
Liabilities and Equity
Current liabilities (1)
Liabilities held for sale	$	1,233	$	953
Other current liabilities		1,436			1,530
Total current liabilities		2,669			2,483
Non-current liabilities (1)
Liabilities held for sale		1,523			1,894
Other non-current liabilities		7,008			6,821
Total non-current liabilities		8,531			8,715
Capitalization
Debt, finance leases, and other financing (excluding securitization debt) (2)
Debt, finance leases, and other financing (excluding non-recourse and securitization debt)		12,370			12,083
Non-recourse debt		79			83
Total debt, finance leases, and other financing (excluding securitization debt)		12,449			12,166
Preferred stock and securities		224			-
Noncontrolling interests		563			581
Common stockholders' equity		5,866			5,496
Total capitalization (excluding securitization debt)		19,102			18,243
Securitization debt (2)		211			225
Total Liabilities and Equity	$	30,513		$	29,666

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

CMS ENERGY CORPORATION

Summarized Consolidated Statements of Cash Flows

(Unaudited)

					In Millions
		Nine Months Ended
		9/30/21			9/30/20
Beginning of Period Cash and Cash Equivalents, Including Restricted Amounts	$	185	$	157
Net cash provided by operating activities (3)		1,483			1,144
Net cash used in investing activities		(1,460)			(2,298)
Cash flows from operating and investing activities		23			(1,154)
Net cash provided by financing activities		28			1,555
Total Cash Flows	$	51	$	401
End of Period Cash and Cash Equivalents, Including Restricted Amounts (4)
$	236	$	558

1. Includes the impact of a $531 million pension contribution in 2020.
2. In June 2021, CMS Energy entered into an agreement for EnerBank to merge with Regions Bank. As a result, EnerBank's cash and cash equivalents are presented as assets held for sale on CMS Energy's consolidated balance sheets at September 30, 2021 and September 30, 2020.

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CMS ENERGY CORPORATION

Selected Financial Data from Continuing Operations

(Unaudited)

EBIT - Non-GAAP(1)

Total adjusted continuing

Consumers Energy

Depreciation and Amortization

Total continuing

Consumers Energy

EBITDA - Non-GAAP(1)

Total adjusted continuing

Consumers Energy

Dividends and Other Distributions From Subsidiaries

Interest Expense, Net

Total continuing

Energy parent

Consumers Energy

Book Value Per Share

Common Shares Outstanding - End of Period

Average Common Shares Outstanding

Basic

Diluted

Debt (2)

Energy parent Non-recourse project debt

Consumers Energy (excluding securitization bonds) Total continuing (excluding securitization bonds) Securitization bonds

Total continuing

Unrestricted Cash and Cash Equivalents

Consumers Energy

CMS Treasury Services

Other

Total continuing

							In Millions
		Twelve Months Ended
	9/30/21			12/31/20			9/30/20
$	1,371	$	1,329		$	1,373
	1,383			1,334			1,363
$	1,112	$	1,043		$	1,025
	1,074			1,023			1,012
$	2,483	$	2,372		$	2,398
	2,457			2,357			2,375
$	759	$	659		$	681
$	501	$	505		$	496
	186			178			169
	310			320			320
							In Millions
				As of
	9/30/21			12/31/20			9/30/20
$	20.25	$	19.02		$	18.58
	289.7			288.9			286.3
	288.9			285.0			284.8
	289.4			286.3			286.3
$	4,128	$	4,126		$	4,130
	79			83			85
	8,242			7,957			7,838
	12,449			12,166			12,053
	211			225			238
$	12,660		$	12,391		$	12,291
$	29	$	20		$	199
	7			3			181
	66			9			4
$	102		$	32		$	384

Consumers Energy
Regulated Common Equity Ratio (13-Month Average)
Electric		42.4%		41.7%		41.7%
Gas		42.4%		41.7%		41.7%
Regulated Rate Base (13-Month Average, in Millions)
Electric (3)	$	13,281	$	12,992	$	12,637
Gas		7,424		6,790		6,678
Regulated Return on Average Common Equity (12-Month Ended)
Electric (3)		10.4%		10.1%		10.9%
Gas		9.9%		9.5%		10.0%

1. EBIT (non-GAAP) equals reported net income from continuing operations available to common stockholders + income taxes + interest charges + noncontrolling interests + 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 renewables and transmission rate base of $1.1 billion in total.