Consumers Energy : 2022 Third Quarter Results and Outlook

Page 1 of 14

To:	Investment Community	From: CMS Energy Investor Relations
Date:	October 27, 2022	http://www.cmsenergy.com
Subject:	CMS Energy Third Quarter 2022 Results and Outlook

CMS Energy will hold a webcast to discuss its Third Quarter 2022 Results and Outlook on Thursday, October 27 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 2022 Earnings Call" or click here.

CMS Energy Announces Strong Third Quarter Results, Raises 2022

Adjusted EPS, Introduces Preliminary 2023

Guidance

JACKSON, Mich., Oct. 27, 2022 - CMS Energy announced today reported earnings per share of $0.56 for the third quarter of 2022, compared to $0.64 per share for the same quarter in 2021. The company's adjusted earnings per share for the third quarter of 2022 were $0.56, compared to $0.54 per share for the same quarter in 2021. For the first nine months of 2022, the company reported $2.27 per share compared to $2.46 per share for the same period in 2021. On an adjusted earnings per share basis year-to-date, the company reported $2.29 per share in 2022, compared to $2.18 per share in 2021.

CMS Energy raised its 2022 adjusted earnings guidance to $2.87 to $2.89 per share, from $2.85 to $2.89 per share* (*See below for important information about non-GAAP measures). CMS Energy also introduced preliminary 2023 adjusted earnings guidance of $3.05 to $3.11 per share and reaffirmed its long-term adjusted EPS growth of 6 to 8 percent, with continued confidence toward the high end.

"CMS had another strong quarter and continues to execute well on all fronts, positioning us solidly for the fourth quarter and 2023," said Garrick Rochow, President and CEO of CMS Energy and Consumers Energy. "We had several accomplishments during the period - most notably in economic development through the commitment by Gotion, a global electric vehicle battery manufacturer, to build a factory in our service territory, which builds our customer base and helps Michigan grow."

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.

# # #

CMS Energy will hold a webcast to discuss its 2022 third quarter results and provide a business and financial outlook on Thursday, October 27 at 9:30 a.m. (EDT). To participate in the webcast, go to CMS Energy's homepage (cmsenergy.com) and select "Events and Presentations."

Page 2 of 14

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, 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

																				Page 3 of 14
CMS ENERGY CORPORATION
Consolidated Statements of Income
	(Unaudited)
														In Millions, Except Per Share Amounts
				Three Months Ended				Nine Months Ended
Operating Revenue			9/30/22				9/30/21				Change			9/30/22					9/30/21				Change
Electric utility	$	1,594	$	1,419			$	175	$	4,160	$	3,713	$	447
Gas utility			292				225				67			1,811					1,361				450
NorthStar Clean Energy			138				81				57			347					222				125
Total operating revenue			2,024				1,725				299			6,318					5,296				1,022
Operating Expenses
Fuel for electric generation			312				184				128			720					438				282
Purchased and interchange power			572				462				110			1,510					1,230				280
Purchased power - related parties			21				21				-			56					56				-
Cost of gas sold			118				57				61			802					432				370
Maintenance and other operating expenses			413				410				3			1,139					1,076				63
Depreciation and amortization			243				250				(7)			830					832				(2)
General taxes			87				81				6			308					290				18
Total operating expenses			1,766				1,465				301			5,365					4,354				1,011
Operating Income (Loss)
Electric utility			258				268				(10)			676					694				(18)
Gas utility			(5)				(3)				(2)			280					258				22
NorthStar Clean Energy			7				(4)				11			3					(4)				7
Other			(2)				(1)				(1)			(6)					(6)				-
Total operating income			258				260				(2)			953					942				11
Other Income (Expense)
Interest income			1				-				1			3					2				1
Allowance for equity funds used during construction			1				2				(1)			4					5				(1)
Income (loss) from equity method investees			1				4				(3)			1					8				(7)
Nonoperating retirement benefits, net			54				40				14			154					121				33
Other income			2				1				1			3					7				(4)
Other expense			(5)				(3)				(2)			(20)					(7)				(13)
Total other income			54				44				10			145					136				9
Earnings Before Interest, Taxes, and Other Charges			312				304				8			1,098					1,078				20
Interest on long-term debt			127				120				7			370					359				11
Interest expense - related parties			3				3				-			9					9				-
Other interest expense			-				3				(3)			2					8				(6)
Allowance for borrowed funds used during construction			-				(1)				1			(1)					(2)				1
Income tax expense			19				26				(7)			72					90				(18)
Income From Continuing Operations				163				153				10			646					614				32
Income from discontinued operations, net of tax			-				30				(30)			4					82				(78)
Net Income			163				183				(20)			650					696				(46)
Loss attributable to noncontrolling interests			(2)				(6)				4			(16)					(18)				2
Net Income Attributable to CMS Energy			165				189				(24)			666					714				(48)
Preferred stock dividends			2				3				(1)			7					3				4
Net Income Available to Common Stockholders	$	163	$	186			$	(23)	$	659	$	711	$	(52)
Reconciling items:
Disposal of discontinued operations (gain) loss			-				3				(3)			(5)					8				(13)
Tax impact			-				(1)				1			1					(2)				3
Discontinued operations income			-				(42)				42			-					(115)				115
Tax impact			-				10				(10)			-					27				(27)
Other exclusions from adjusted earnings			*				(*)				(*)			(1)					(1)				-
Tax impact			(*)				*				*			*					*				-
Voluntary separation program			(*)				-				(*)			11					-				11
Tax impact			*				-				*			(3)					-				(3)
Adjusted Net Income - Non-GAAP		$	163		$	156			$	7		$	662		$	628		$	34
Average Common Shares Outstanding
Diluted			290.1				289.6				0.5			290.0					289.4				0.6
Diluted Earnings Per Average Common Share	$	0.56	$	0.64			$	(0.08)	$	2.27	$	2.46	$	(0.19)
Reconciling items:
Disposal of discontinued operations (gain) loss			-				0.01				(0.01)			(0.01)					0.03				(0.04)
Tax impact			-				(*)				*			*					(0.01)				0.01
Discontinued operations income			-				(0.14)				0.14			-					(0.39)				0.39
Tax impact			-				0.03				(0.03)			-					0.09				(0.09)
Other exclusions from adjusted earnings			*				(*)				(*)			(*)					(*)				-
Tax impact			(*)				*				*			*					*				-
Voluntary separation program			(*)				-				(*)			0.04					-				0.04
Tax impact			*				-				*			(0.01)					-				(0.01)
Adjusted Diluted Earnings Per Average Common Share - Non-GAAP		$	0.56		$	0.54			$	0.02		$	2.29		$	2.18		$	0.11

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

Page 4 of 14

CMS ENERGY CORPORATION

Summarized Consolidated Balance Sheets

(Unaudited)

					In Millions
			As of
Assets		9/30/22			12/31/21
Current assets
Cash and cash equivalents	$	168	$	452
Restricted cash and cash equivalents		27			24
Other current assets		2,831			2,151
Total current assets		3,026			2,627
Non-current assets
Plant, property, and equipment		22,340			22,352
Other non-current assets		5,006			3,774
Total Assets	$	30,372		$	28,753
Liabilities and Equity
Current liabilities (1)	$	1,488	$	1,822
Non-current liabilities (1)		7,625			7,269
Capitalization
Debt, finance leases, and other financing (excluding securitization debt) (2)
Debt, finance leases, and other financing (excluding non-recourse and securitization debt)		13,571			12,200
Non-recourse debt		-			76
Total debt, finance leases, and other financing (excluding securitization debt)		13,571			12,276
Preferred stock and securities		224			224
Noncontrolling interests		591			557
Common stockholders' equity		6,689			6,407
Total capitalization (excluding securitization debt)		21,075			19,464
Securitization debt (2)		184			198
Total Liabilities and Equity	$	30,372		$	28,753

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
		9/30/22			9/30/21
Beginning of Period Cash and Cash Equivalents, Including Restricted Amounts	$	476	$	185
Net cash provided by operating activities		667			1,483
Net cash used in investing activities		(1,808)			(1,460)
Cash flows from operating and investing activities		(1,141)			23
Net cash provided by financing activities		860			28
Total Cash Flows	$	(281)	$	51
End of Period Cash and Cash Equivalents, Including Restricted Amounts
$	195	$	236

Page 5 of 14

CMS ENERGY CORPORATION

Selected Financial Data

(Unaudited)

								In Millions
			Twelve Months Ended
EBIT - Non-GAAP(1)		9/30/22			12/31/21			9/30/21
Consolidated	$	1,382	$	1,351		$	1,371
Consumers Energy		1,394			1,364			1,383
Depreciation and Amortization
Consolidated	$	1,112	$	1,114		$	1,112
Consumers Energy		1,075			1,077			1,074
EBITDA - Non-GAAP(1)
Consolidated	$	2,494	$	2,465		$	2,483
Consumers Energy		2,469			2,441			2,457
Dividends and Other Distributions From Subsidiaries	$	1,616	$	1,593		$	759
Interest Expense, Net
Consolidated	$	506	$	500		$	501
Energy parent		182			183			186
Consumers Energy		319			311			310
								In Millions
					As of
		9/30/22			12/31/21			9/30/21
Book Value Per Share	$	23.05	$	22.11		$	20.25
Common Shares Outstanding - End of Period		290.3			289.8			289.7
Average Common Shares Outstanding
Basic		289.5			289.0			288.9
Diluted		290.0			289.5			289.4
Debt (2)
Energy parent	$	3,929	$	3,928		$	4,128
NorthStar Clean Energy		23			76			79
Consumers Energy (excluding securitization bonds)		9,619			8,272			8,242
Consolidated (excluding securitization bonds)		13,571			12,276			12,449
Securitization bonds		184			198			211
Consolidated	$	13,755		$	12,474		$	12,660
Unrestricted Cash and Cash Equivalents
Energy Parent	$	43	$	390		$	46
Consumers Energy		83			22			29
CMS Treasury Services		4			19			7
Other		38			21			20
Consolidated	$	168		$	452		$	102
Consumers Energy
Regulated Common Equity Ratio (13-Month Average)
Electric		43.7%			42.6%			42.4%
Gas		43.7%			42.6%			42.4%
Regulated Rate Base (13-Month Average, in Millions)
Electric (3)	$	13,603	$	13,354		$	13,281
Gas		8,365			7,654			7,424
Regulated Return on Average Common Equity (12-Month Ended)
Electric (3)		9.8%			10.1%			10.4%
Gas		9.3%			9.4%			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 renewables rate base of $1.1 billion in total.