DTE Energy : Business Update July 8, 2021

DT E E N E R GY

B U S I N E S S U P D AT E

J U LY 8 , 2 0 2 1

Safe harbor statement

The information contained herein is as of the date of this document. DTE Energy expressly disclaims any current intention to update any forward-looking statements contained in this document as a result of new information or future events or developments. Words such as "anticipate," "believe," "expect," "may," "could," "would," "projected," "aspiration," "plans" and "goals" signify forward-looking statements. Forward-looking statements are not guarantees of future results and conditions but rather are subject to various assumptions, risks and uncertainties. This document contains forward-looking statements about DTE Energy's financial results and estimates of future prospects, and actual results may differ materially. Many factors impact forward-looking statements including, but not limited to, the following: risks related to the spin-off of DT Midstream, including that providing DT Midstream with the transition services previously negotiated could disrupt or adversely affect our business, results of operations and financial condition; the duration and impact of the COVID-19 pandemic on DTE Energy and customers, impact of regulation by the EPA, the EGLE, the FERC, the MPSC, the NRC, and for DTE Energy, the CFTC and CARB, as well as other applicable governmental proceedings and regulations, including any associated impact on rate structures; the amount and timing of cost recovery allowed as a result of regulatory proceedings, related appeals, or new legislation, including legislative amendments and retail access programs; economic conditions and population changes in our geographic area resulting in changes in demand, customer conservation, and thefts of electricity and, for DTE Energy, natural gas; the operational failure of electric or gas distribution systems or infrastructure; impact of volatility in prices in the international steel markets on DTE Energy's power and industrial projects operations; the risk of a major safety incident; environmental issues, laws, regulations, and the increasing costs of remediation and compliance, including actual and potential new federal and state requirements; the cost of protecting assets against, or damage due to, cyber incidents and terrorism; health, safety, financial, environmental, and regulatory risks associated with ownership and operation of nuclear facilities; volatility in commodity markets, deviations in weather, and related risks impacting the results of DTE Energy's energy trading operations; changes in the cost and availability of coal and other raw materials, purchased power, and natural gas; advances in technology that produce power, store power or reduce power consumption; changes in the financial condition of significant customers and strategic partners; the potential for losses on investments, including nuclear decommissioning and benefit plan assets and the related increases in future expense and contributions; access to capital markets and the results of other financing efforts which can be affected by credit agency ratings; instability in capital markets which could impact availability of short and long-term financing; the timing and extent of changes in interest rates; the level of borrowings; the potential for increased costs or delays in completion of significant capital projects; changes in, and application of, federal, state, and local tax laws and their interpretations, including the Internal Revenue Code, regulations, rulings, court proceedings, and audits; the effects of weather and other natural phenomena on operations and sales to customers, and purchases from suppliers; unplanned outages; employee relations and the impact of collective bargaining agreements; the availability, cost, coverage, and terms of insurance and stability of insurance providers; cost reduction efforts and the maximization of plant and distribution system performance; the effects of competition; changes in and application of accounting standards and financial reporting regulations; changes in federal or state laws and their interpretation with respect to regulation, energy policy, and other business issues; contract disputes, binding arbitration, litigation, and related appeals; and the risks discussed in DTE Energy's public filings with the Securities and Exchange Commission. New factors emerge from time to time. We cannot predict what factors may arise or how such factors may cause results to differ materially from those contained in any forward-looking statement. Any forward-looking statements speak only as of the date on which such statements are made. We undertake no obligation to update any forward-looking statement to reflect events or circumstances after the date on which such statement is made or to reflect the occurrence of unanticipated events. This document should also be read in conjunction with the Forward-Looking Statements section of the joint DTE Energy and DTE Electric 2020 Form 10-K and 2021 Form 10-Q (which sections are incorporated by reference herein), and in conjunction with other SEC reports filed by DTE Energy and DTE Electric.

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Focusing on our employees, customers and communities while delivering for investors

Employees

• Recognized as a Gallup Great Workplace for the ninth consecutive year
• Building on our diversity, equity and inclusion focus with acceleration of commitment to build a better workplace

Customers

• Received MPSC order approving strategy which will further postpone the filing of an electric rate case until October, maintaining steady base rates through 2021
• Ranked in top quartile at both utilities for residential satisfaction by J.D. Power

Community

• Contributed to Habitat for Humanity effort to weather-prooflow-income homes
• Supported Detroit small businesses with grant to help navigate beyond the pandemic

Investors

• Strong start to 2021; on track to deliver 7% operating EPS1 growth from 2020 original guidance midpoint
• DTE Energy positioned as a predominantly pure-play,best-in-class utility with 5% - 7% long-term operating EPS growth from 2020 original guidance base

1. Reconciliation of operating earnings (non-GAAP) to reported earnings included in the appendix

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DTE Energy benefits from being a predominantly pure-play regulated utility

Enhanced strategic ✓ Premier, predominantly pure-play regulated electric and natural

focus	gas utility
Investments in	✓ Substantially growing rate base with $17 billion of utility growth
capital investment, a 13% increase over prior plan
growth
✓ Aligned with aggressive ESG targets, net zero greenhouse gas
opportunities
emissions by 2050
	✓ 5% - 7% operating EPS1 growth target from 2020 original
Distinguished	guidance midpoint
− Targeting average annual operating earnings growth of 7% -
growth profiles
8% at DTE Electric and 9% at DTE Gas from 2020 original
	guidance midpoint
Improved investor	✓ Attracts shareholders desiring predictable, low-risk growth
alignment	associated with regulated utilities
Seasoned	✓ Track record of providing clean, safe, reliable and affordable
energy to our customers and being a force for growth in the
management team
communities where we live and serve
Competitive	✓ Targeting dividend growth and payout ratio consistent with
dividends	pure-play utility peers

1. Reconciliation of operating earnings (non-GAAP) to reported earnings included in the appendix

Operating earnings

70%

Predominantly

pure-play regulated utility

20%

10%

Capital investment

76%

5-year plan

2021 - 2025

16%

8%

Electric utility

Gas utility

Non-utility

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Spin generates a combined dividend that is expected to be higher than DTE's pre-transaction dividend

($ per share)

	Annualized dividend
		~$4.70 - $4.803
	$4.341	2x coverage
		ratio2 floor
		60%
$2.12		payout
	ratio
		DT Midstream
		DTE Energy
2009	2021	2022E
	pre-spin

• Increased annualized dividend per share every year since 2010
• Spin generates a combined dividend that is expected to be higher than DTE's forecasted, pre-transaction dividend
• • Expect 8% - 10% post-spin dividend increase from 2021 to 2022 versus planned 6% pre-spin
  • DTE will target a payout ratio of 60%, consistent with best-performingpure-play utilities, equivalent to a 2021 annualized dividend of $3.302
  • DTM plans to establish a growing dividend, targeting a 2x dividend coverage ratio2 floor that is competitive with midstream peers

More than 100 consecutive years of dividend payments

1.	Annualized dividend is the current consolidated pre-spin version of DTE; any post-spin guidance is subject to final Board approval and will be provided later in the process	5
2.	Subject to final Board approval

3. Reasonable proxy for combined annualized dividend - calculated using current disclosures; any post-spin dividend guidance is subject to final Board approval