EX-99.1 2 k49523exv99w1.htm EX-99.1 exv99w1
Exhibit 99.1
Financial Plan Update August 10, 2010

 

This presentation contains "forward-looking statements" as defined in Rule 3b-6 of the Securities Exchange Act of 1934, as amended, Rule 175 of the Securities Act of 1933, as amended, and relevant legal decisions. The forward-looking statements are subject to risks and uncertainties. They should be read in conjunction with "FORWARD-LOOKING STATEMENTS AND INFORMATION" and "RISK FACTORS" sections of CMS Energy's and Consumers Energy's Form 10-K for the year ended December 31 and as updated in subsequent 10-Qs. 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. 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. CMS Energy expects 2010 reported earnings to be about the same as adjusted earnings. Reported earnings could vary because of several factors. CMS Energy is not providing reported earnings guidance reconciliation because of the uncertainties associated with those factors.

 

Dividend Increase Announced . . . . Transformation back to Utility complete Michigan economy recovery in early stage Investment plan strong 2006 2007 2008 2009 2010 2011 0 0.2 0.36 0.5 0.6 0.84 . . . . up sharply from 15¢ to 21¢ a quarter. Background Dividend +40% _ _ _ _ _ a Pre increase a

 

Plan Increases Certainty . . . . . . . . for shareowners, with stronger dividend yield in projected "TSR" mix. New Plan 2011-2015 Prior Plan Investment (bils) $6.4 $7.2 EPS annual growth Dividend yield Projected Total Shareholder Return (TSR) 5% - 7% 5 10% - 12% 6% - 8% 4 10% - 12% Operating cash flow growth (mils) ^ $100 >$100 Avoided new common equity Five years Few years Parent debt net of cash (bils) $1.8 $1.7 $1.8 $1.6 Customer rate increases (excluding fuel) 2% 3% _ _ _ _ _ a At a $17 stock price a

 

New Investment Plan . . . . reduces risk. 2008 2009 2010 2011 2012 2013 2014 2015 Depreciation 7.851 8.729 9.2 9.7 9.196 8.65 8.164 7.661 7.169 Maintenance 0.563 1.086 1.616 2.195 2.791 Customer growth 0.044 0.078 0.117 0.159 0.217 Environmental 0.125 0.311 0.598 0.941 1.294 Gas compression and pipelines 0.07 0.125 0.153 0.167 0.18 Smart Grid 0.052 0.121 0.196 0.259 0.329 Energy optimization 0.028 0.093 0.168 0.244 0.32 Electric reliability and other environmental 0.073 0.156 0.254 0.351 0.438 Renewables 0.045 0.175 0.331 0.52 0.656 5%-7% Bils $ Present Rate Base 2010 2011 2012 2013 2014 2015 Average Rate Base (bils) $10.2 $10.8 $11.6 $12.5 $13.4 0 Rate Base 2011 - 2015 Capital Investment . . . . Five-Year Plan (bils) Prior Plan (2010-14) $ 7.2 "Coal" deferred $ - 1.0 Smart Grid rollout - 0.4 Renewables accelerated + 0.1 Distribution + 0.2 Generation & Plan period + 0.3 Change $ - 0.8 New Plan (2011-15) $ 6.4 ?

 

Investment Timing . . . . . . . . optimized to include best projects. Maintenance Customer Growth Clean Air Clean Coal Plant Smart Grid Renewables Energy Optimization Electric Reliability and Other Gas Compression and Pipeline 2.9 0.2 1.3 995 0.3 0.7 0.4 0.4 0.2 2011-2015 Investment Plan $6.4 billion 2010 & 2011 2012 2013 2014 2015 -0.1 -0.3 -0.3 -0.4 0.3 Change from Prior Plan $0.8 Billion ?

 

2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 History 0.81 0.9 0.96 1.08 0.84 1.21 1.26 2009 Plan 1.35 1.43 1.5 1.58 1.68 1.77 Earnings Per Share (adjusted non-GAAP) . . . . New Plan (5% - 7% Growth) (2010-15) Prior Plan (6% - 8% Growth) (2010-15) . . . . growth track record continues. 2003 - 2009 8% Growth Dividend Annual ¢/share _ _ _ _ _ a $1.25 excluding discontinued Exeter operations and accounting changes related to convertible debt and restricted stock b Pre increase b

 

Operating Cash Flow Growth . . . . . . . . driven by investment growth. 2008 2009 2010 2011 2012 2013 2014 2015 CF after Capex -598 39 -22 20 -76 -31 -326 -144 73 160 220 325 479 384 497 271 CF after dividends 756 726 790 676 814 898 1032 987 CF after working capital 81 113 137 166 184 210 230 250 CF after interest 698 44 138 165 82 141 278 452 Operating cash flow 335 362 355 379 400 417 456 505 Amount (bils) $ Operating cash flow a up $0.1 billion per year $1.9 Interest Working capital and taxes Base Investment $1.3 $1.6 $1.7 $1.8 $1.5 $2.0 Cash flow before dividend Investment choices _ _ _ _ _ a Non-GAAP Prior Plan

 

Need for New Common Equity . . . . 2011 2012 2013 2014 New Common Equity Old Plan 0 Add New Plan 0 0 0 0 Remaining Tax Cash Benefits (bils) $0.4 $0.3 $0.2 $0.1 Cash Flow Better/(Worse) than Old Plan $0.1 $0.2 $0.3 $0.2 . . . . deferred through Plan period.

 

CMS Cash Flow and Liquidity . . . . . . . . strong relative to peers. Available Liquidity b as a Percentage of Market Cap (at 7-20) 2010E-2011E Cash Flow as a Percentage of Market Cap (at 7-20) 0.06 -0.04 -0.04 -0.07 -0.08 -0.11 -0.12 -0.12 CMS -0.13 Source: JPMorgan _ _ _ _ _ a Top quartile for 2007-2009 actuals a Peer median: -16.6% 0.55 0.544 0.534 CMS 0.432 Peer median: 22% _ _ _ _ _ b As of March 31, 2010 Q1 Q2 Q3 Q4

 

Electric Rate Increases (average annual) . . . . . . . . moderated for customers - down from prior years and prior plan. 2007-2009 2010-2015 Fuel (including CO2) 4 3 Base 3 2 1 7% 5% New Fuel Base 6% Prior

 

Plan Solidly . . . . 2010 Target Adjusted EPS a $1.35 Operating cash flow a (bils) 1.4 Capital structure (year-end) FFO / Average debt 16% Parent debt (bils) b $1.8 Utility equity ratio c 48% Dividend + 40% Long Term EPS growth 5% - 7% Operating cash flow growth a (mils) ^$100 per year _ _ _ _ _ a Non-GAAP b Net of cash c Financial, excluding securitization and Palisades financing obligation . . . . on track. ? ? ? ? ?

 

GAAP Reconciliation

 

CMS Energy
Earnings Reconciliation By Quarter and Year
December 31
Reconciliation of reported measures prepared in accordance with
Generally Accepted Accounting Principles (GAAP) versus non-GAAP measures
                                         
    Unaudited Quarters
(millions, except per share amounts)   1Q03   2Q03   3Q03   4Q03   FY 2003
 
Reported net income
   $ 82     $ (65 )   $ (69 )   $ 8     $ (44 )
 
After-tax items:
                                        
Electric and gas utility other
                             30       30  
Enterprises other
     5       7       62       37       111  
Corporate other
     1               19       4       24  
Discontinued operations
     (31 )     53       (2 )     (43 )     (23 )
Cumulative accounting changes
     24                               24  
 
Ongoing earnings (non-GAAP)
   $ 81     $ (5 )   $ 10     $ 36     $ 122  
 
 
                                        
Average shares outstanding, basic
     144.1       144.1       152.2       161.1       150.4  
 
                                        
Average shares outstanding, diluted
     165.0       144.1       152.2       161.1       150.4  
 
                                        
 
Reported earnings per share
   $ 0.52     $ (0.45 )   $ (0.46 )   $ 0.05     $ (0.30 )
 
After-tax items
                                        
Electric and gas utility other
                             0.19       0.21  
Enterprises other
     0.03       0.05       0.41       0.23       0.74  
Corporate other
                     0.12       0.02       0.16  
Discontinued operations
     (0.19 )     0.37       (0.01 )     (0.27 )     (0.16 )
Cumulative accounting changes
     0.14                               0.16  
 
Ongoing earnings per share (non-GAAP)
   $ 0.50     $ (0.03 )   $ 0.06     $ 0.22     $ 0.81  
 
Note: Year-to-date (YTD) EPS may not equal sum of quarters due to share count differences.
2003 A-1

 

 

CMS Energy
Earnings Reconciliation By Quarter and Year
Reconciliation of reported measures prepared in accordance with
Generally Accepted Accounting Principles (GAAP) versus non-GAAP measures
                                         
    Unaudited     31-Dec  
(millions, except per share amounts)   1Q04*     2Q04     3Q04     4Q04     FY 2004  
         
Reported net income — GAAP
   $ (9 )   $ 16     $ 56     $ 47     $ 110  
       
After-tax items:
                                        
Electric and gas utility other
                             (67 )     (67 )
Enterprises other
     88               (29 )     48       107  
Corporate other
     (7 )             (1 )     1       (7 )
Discontinued operations
     2               (8 )     10       4  
Cumulative accounting changes
     2                               2  
       
Adjusted earnings, including M-T-M
   $ 76     $ 16     $ 18     $ 39     $ 149  
Mark-to-market impacts
   NM     (13 )     9       9       5  
       
Adjusted earnings, excluding M-T-M
   $ 76     $ 3     $ 27     $ 48     $ 154  
       
 
                                        
Average shares outstanding, basic
     161.1       161.2       161.5       190.2       168.6  
 
                                        
Average shares outstanding, diluted
     161.1       164.2       165.0       194.0       172.1  
 
                                        
       
Reported earnings per share — GAAP
   $ (0.06 )   $ 0.10     $ 0.34     $ 0.24     $ 0.64  
After-tax items
                                        
Electric and gas utility other
                             (0.35 )     (0.39 )
Enterprises other
     0.56               (0.17 )     0.25       0.62  
Corporate other
     (0.05 )             (0.01 )     0.01       (0.03 )
Discontinued operations
     0.01               (0.05 )     0.05       0.02  
Cumulative accounting changes
     0.01                               0.01  
       
 
                                        
Adjusted earnings per share, including M-T-M
   $ 0.47     $ 0.10     $ 0.11     $ 0.20     $ 0.87  
Mark-to-market impacts
   NM     (0.08 )     0.06       0.05       0.03  
       
 
                                        
Adjusted earnings per share, excluding M-T-M
   $ 0.47     $ 0.02     $ 0.17     $ 0.25     $ 0.90  
       
Note: Year-to-date & full-year EPS may not equal sum of quarters due to share count differences.
*   Quarterly amounts differ from amounts previously reported due to accelerating the measurement date on our benefit plans by one month and the remeasurement of our post retirement obligation.
NM: Not meaningful.
2004 A-1

 

 

CMS Energy
Earnings Reconciliation By Quarter and Year
Reconciliation of reported measures prepared in accordance with
Generally Accepted Accounting Principles (GAAP) versus non-GAAP measures
                                         
    Unaudited     31-Dec  
(millions, except per share amounts)   1Q05     2Q05     3Q05     4Q05     FY 2005  
         
Reported net income — GAAP
   $ 150     $ 27     $ (265 )   $ (6 )   $ (94 )
       
After-tax items:
                                        
Electric and gas utility other
                                        
Enterprises other
     (2 )     (1 )     (1 )     13       9  
Corporate other
             1               8       9  
Discontinued operations
                             (14 )     (14 )
Asset impairment
                     385               385  
       
Adjusted earnings, including M-T-M
   $ 148     $ 27     $ 119     $ 1     $ 295  
Mark-to-market impacts
     (75 )     19       (75 )     40       (91 )
       
Adjusted earnings, excluding M-T-M
   $ 73     $ 46     $ 44     $ 41     $ 204  
       
 
                                        
Average shares outstanding, basic
     195.3       217.9       219.6       218.5       211.8  
 
                                        
Average shares outstanding, diluted
     206.3       228.9       219.6       218.5       211.8  
       
 
                                        
Reported earnings per share — GAAP
   $ 0.74     $ 0.12     $ (1.21 )   $ (0.03 )   $ (0.44 )
       
After-tax items
                                        
Electric and gas utility other
                                        
Enterprises other
     (0.01 )   NM     NM       0.06       0.04  
Corporate other
           NM               0.03       0.04  
Discontinued operations
                             (0.06 )     (0.07 )
Asset impairment
                     1.75               1.82  
       
Adjusted earnings per share, including M-T-M
   $ 0.73     $ 0.12     $ 0.54     $ 0.00     $ 1.39  
Mark-to-market impacts
     (0.36 )     0.08       (0.34 )     0.19       (0.43 )
       
Adjusted earnings per share, excluding M-T-M
   $ 0.37     $ 0.20     $ 0.20     $ 0.19     $ 0.96  
       
Note: Year-to-date & full-year EPS may not equal sum of quarters due to share count differences.
2005 A-1

 

 

CMS Energy
Earnings Reconciliation By Quarter and Year
Reconciliation of reported measures prepared in accordance with
Generally Accepted Accounting Principles (GAAP) versus non-GAAP measures
                                         
    Unaudited        
    2006     2006  
(In millions, except per share amounts)   1Q     2Q     3Q     4Q     Dec YTD  
       
Reported net income — GAAP
   $ (27 )   $ 72     $ (103 )   $ (32 )   $ (90 )
       
After-tax items:
                                        
Electric and gas utility other
     —       —       —       —       —  
Enterprises other
     —       —       (29 )     25       (4 )
Corporate interest and other
     2       (15 )     4       82       73  
Discontinued operations (gain)
     (1 )     (2 )     (1 )     (2 )     (6 )
Asset impairment charges
     —       —       169       —       169  
       
Adjusted earnings, including MTM
   $ (26 )   $ 55     $ 40     $ 73     $ 142  
Mark-to-market impacts
     74       21       30       (13 )     112  
       
Adjusted earnings, excluding MTM
   $ 48     $ 76     $ 70     $ 60     $ 254  
       
 
                                        
Average shares outstanding, basic
     219.1       219.6       220.1       220.6       219.9  
Average shares outstanding, diluted
     219.1       229.6       220.1       220.6       219.9  
       
 
                                        
Reported earnings per share — GAAP
   $ (0.12 )   $ 0.31     $ (0.47 )   $ (0.15 )   $ (0.41 )
       
After-tax items
                                        
Electric and gas utility other
     —       —       —       —       —  
Enterprises other
     —       —       (0.13 )     0.11       (0.02 )
Corporate other
     0.01       (0.07 )     0.02       0.38       0.27  
Discontinued operations
     (0.01 )     (0.01 )     —       (0.01 )     (0.03 )
Asset impairment charges
     —       —       0.76       —       0.76  
       
Adjusted earnings per share, including MTM
   $ (0.12 )   $ 0.23     $ 0.18     $ 0.33     $ 0.57  
Mark-to-market impacts
     0.34       0.10       0.13       (0.06 )     0.51  
       
Adjusted earnings per share, excluding MTM
   $ 0.22     $ 0.33     $ 0.31     $ 0.27     $ 1.08  
       
Note: Year-to-date (YTD) EPS may not equal sum of quarters due to share count differences.
NM: Not Meaningful.
2006 A-1

 

 

CMS Energy Corporation
Earnings By Quarter and Year GAAP Reconciliation
(Unaudited)
                                         
    (In millions, except per share amounts)  
    2007  
    1Q     2Q     3Q     4Q     Dec YTD  
     
Reported net income (loss) — GAAP
   $ (215 )   $ 33     $ 82     $ (127 )   $ (227 )
 
After-tax items:
                                        
Electric and gas utility
     4       —       —       —       4  
Enterprises
     49       19       (10 )     222       280  
Corporate interest and other
     (81 )     32       9       (38 )     (78 )
Discontinued operations (income) loss
     178       (91 )     —       2       89  
Asset impairment charges, net
     157       25       (49 )     —       133  
 
Adjusted income — non-GAAP
   $ 92     $ 18     $ 32     $ 59     $ 201  
 
 
                                        
Average shares outstanding, basic
     221.5       222.6       223.0       223.4       222.6  
Average shares outstanding, diluted
     221.5       222.6       241.3       223.4       222.6  
 
                                        
 
Reported earnings (loss) per share — GAAP
   $ (0.97 )   $ 0.15     $ 0.34     $ (0.57 )   $ (1.02 )
 
After-tax items:
                                        
Electric and gas utility
     0.01       —       —       —       (0.07 )
Enterprises
     0.23       0.08       (0.04 )     0.99       1.25  
Corporate interest and other
     (0.36 )     0.15       0.03       (0.17 )     (0.32 )
Discontinued operations (income) loss
     0.80       (0.41 )     —       0.01       0.40  
Asset impairment charges, net
     0.71       0.11       (0.20 )     —       0.60  
 
Adjusted earnings per share — non-GAAP
   $ 0.42     $ 0.08     $ 0.13     $ 0.26     $ 0.84  
 
                                         
    (In millions, except per share amounts)  
    2008  
    1Q     2Q     3Q     4Q     Dec YTD  
     
Reported net income — GAAP
   $ 103     $ 46     $ 79     $ 61     $ 289  
 
After-tax items:
                                        
Electric and gas utility
     —       1       6       5       12  
Enterprises
     *       (4 )     (* )     1       (3 )
Corporate interest and other
     —       —       (6 )     1       (5 )
Discontinued operations (income) loss
     (* )     1       (1 )     *       *  
 
Adjusted income — non-GAAP
   $ 103     $ 44     $ 78     $ 68     $ 293 (a)
 
 
                                        
Average shares outstanding, basic
     223.5       223.7       224.1       224.5       223.9  
Average shares outstanding, diluted
     236.6       239.1       234.3       226.6       234.8  
 
                                        
 
Reported earnings per share — GAAP
   $ 0.44     $ 0.19     $ 0.34     $ 0.27     $ 1.23  
 
After-tax items:
                                        
Electric and gas utility
     —       0.01       0.02       0.03       0.05  
Enterprises
     *       (0.02 )     0.01       *       (0.01 )
Corporate interest and other
     —       —       (0.03 )     *       (0.02 )
Discontinued operations (income) loss
     (* )     0.01       (0.01 )     *       *  
 
Adjusted earnings per share — non-GAAP
   $ 0.44     $ 0.19     $ 0.33     $ 0.30     $ 1.25  
 
Note: Year-to-date (YTD) EPS may not equal sum of quarters due to share count differences.
* Less than $500 thousand or $0.01 per share.
2008 A-1

 

 

CMS ENERGY CORPORATION
Earnings Segment Results GAAP Reconciliation
(Unaudited)
                                 
    Three Months Ended     Twelve Months Ended  
December 31   2008     2007     2008     2007  
 
Electric Utility
                                
Reported
   $ 0.17     $ 0.17     $ 1.16     $ 0.88  
Dilution Impact
     —       —       —       (0.06 )
Unrealized Investment Loss
     0.02       —       0.03       —  
Asset Sales Loss and Other, net
     —       —       *       0.01  
 
                        
Adjusted
   $ 0.19     $ 0.17     $ 1.19     $ 0.83  
 
                        
 
                                
Gas Utility
     .                          
Reported
   $ 0.19     $ 0.15     $ 0.38     $ 0.39  
Dilution Impact
     —       —       —       (0.03 )
Unrealized Investment Loss
     0.01       —       0.02       —  
Asset Sales Loss and Other, net
     —       —       —       0.01  
 
                        
Adjusted
   $ 0.20     $ 0.15     $ 0.40     $ 0.37  
 
                        
 
                                
Enterprises
                                
Reported
   $ 0.01     $ (0.97 )   $ 0.06     $ (1.75 )
Unrealized Investment Loss
     *       —       0.01       —  
Asset Impairment Charges, net of insurance recoveries
     —       —       —       0.55  
Asset Sales (Gain) Loss and Other, net
     —       0.99       (0.02 )     1.25  
 
                        
Adjusted
   $ 0.01     $ 0.02     $ 0.05     $ 0.05  
 
                        
 
                                
Corporate Interest and Other
                                
Reported
   $ (0.10 )   $ 0.09     $ (0.37 )   $ (0.14 )
Dilution Impact
     —       —       —       0.03  
Unrealized Investment Loss
     *       —       0.01       —  
Asset Impairment Charges, net of insurance recoveries
     —       —       —       0.05  
Asset Sales Gain and Other, net
     —       (0.17 )     (0.03 )     (0.35 )
 
                        
Adjusted
   $ (0.10 )   $ (0.08 )   $ (0.39 )   $ (0.41 )
 
                        
 
                                
Discontinued Operations
                                
Reported
   $ —     $ (0.01 )   $ —     $ (0.40 )
Discontinued Operations Loss
     —     $ 0.01       —       0.40  
 
                        
Adjusted
   $ —     $ —     $ —     $ —  
 
                        
 
                                
Totals
                                
Reported
   $ 0.27     $ (0.57 )   $ 1.23     $ (1.02 )
Discontinued Operations Loss
     —       0.01       —       0.40  
Dilution Impact
     —       —       —       (0.06 )
Unrealized Investment Loss
     0.03       —       0.07       —  
Asset Impairment Charges, net of insurance recoveries
     —       —       —       0.60  
Asset Sales (Gain) Loss and Other, net
     —       0.82       (0.05 )     0.92  
 
                        
Adjusted
   $ 0.30     $ 0.26     $ 1.25     $ 0.84  
 
                        
 
                                        
Average Common Shares Outstanding — Diluted (in millions)
     226.6       223.4       234.8       222.6  
 
                        
 
*   Less than $0.01 per share.
2008 A-2

 

 

CMS Energy Corporation
Earnings Segment Results GAAP Reconciliation
(Unaudited)
                                 
    Three Months Ended     Twelve Months Ended  
December 31   2009     2008     2009     2008  
 
Electric Utility
                                
Reported
   $ (0.10 )   $ 0.17     $ 0.82     $ 1.16  
Unrealized Investment Loss
     —       0.01       —       0.03  
Asset Sales Loss and Other, net
     0.33       —       0.33       *  
 
                        
Adjusted
   $ 0.23     $ 0.18     $ 1.15     $ 1.19  
 
                        
 
                                
Gas Utility
                                
Reported
   $ 0.18     $ 0.19     $ 0.41     $ 0.38  
Unrealized Investment Loss
     —       0.01       —       0.02  
 
                        
Adjusted
   $ 0.18     $ 0.20     $ 0.41     $ 0.40  
 
                        
 
                                
Enterprises
                                
Reported
   $ (* )   $ *     $ (0.03 )   $ 0.06  
Unrealized Investment Loss
     —       *       —       0.01  
Asset Sales (Gain) Loss and Other, net
     0.02       0.01       0.09       (0.03 )
 
                        
Adjusted
   $ 0.02     $ 0.01     $ 0.06     $ 0.04  
 
                        
 
                                
Corporate Interest and Other
                                
Reported
   $ (0.05 )   $ (0.10 )   $ (0.37 )   $ (0.40 )
Unrealized Investment Loss
     —       0.01       —       0.01  
Asset Sales (Gain) Loss and Other, net
     (* )     *       0.01       (0.03 )
 
                        
Adjusted
   $ (0.05 )   $ (0.09 )   $ (0.36 )   $ (0.42 )
 
                        
 
                                
Discontinued Operations
                                
Reported
   $ (0.01 )   $ (* )   $ 0.08     $ *  
Discontinued Operations (Income) Loss
     0.01       *       (0.08 )     (* )
 
                        
Adjusted
   $ —     $ —     $ —     $ —  
 
                        
 
                                
Totals
                                
Reported
   $ 0.02     $ 0.26     $ 0.91     $ 1.20  
Discontinued Operations (Income) Loss
     0.01       *       (0.08 )     (* )
Unrealized Investment Loss
     —       0.03       —       0.07  
Asset Sales (Gain) Loss and Other, net
     0.35       0.01       0.43       (0.06 )
 
                        
Adjusted
   $ 0.38     $ 0.30     $ 1.26     $ 1.21  (a)
 
                        
 
                                
Average Common Shares Outstanding — Diluted (in millions)
     243.0       228.1       237.9       236.2  
 
                        
 
*   Less than $0.01 per share.
 
(a)   $1.25 excluding discontinued Exeter operations and accounting changes related to convertible debt and restricted stock.

 

 

Consumers Energy
2009 Cash Flow GAAP Reconciliation (in millions) (unaudited)
                                                                                             
            Reclassifications From Sources and Uses to Statement of Cash Flows        
Presentation Sources and Uses     Tax     Interest     Pension     Accts/Rec     Capital     Securitization     Operating     Preferred     Common     Consolidated Statements of Cash Flows
    non-GAAP     Sharing     Payments     Contribution     Financing     Lease Pymts     Debt Pymts     Activites     Dividends     Dividends     GAAP      
Description   Amount     Operating     as Operating     as Operating     as Operating     as Financing     as Financing     as Investing     as Financing     as Financing     Amount     Description
Cash at year end 2008
   $ 69     $ —     $ —     $ —     $ —     $ —     $ —     $ —     $ —     $ —     $ 69     Cash at year end 2008
 
                                                                                            
Sources
                                                                                            
Operating
   $ 1,315     $ (82 )   $ (224 )   $ —     $ —     $ 23     $ 34     $ (35 )   $ —     $ —     $ 1,031      
Other working capital
     210       —       —       (199 )     (120 )     —       —       —       —       —       (109 )    
 
                                                                    
Sources
   $ 1,525     $ (82 )   $ (224 )   $ (199 )   $ (120 )   $ 23     $ 34     $ (35 )   $ —     $ —     $ 922     Net cash provided by operating activities
 
                                                                                            
Uses
                                                                                            
Interest and preferred dividends
   $ (226 )   $ —     $ 224     $ —     $ —     $ —     $ —     $ 35     $ 2     $ —     $ 35      
Pension Contribution
     (199 )     —       —       199       —       —       —       —       —       —       —      
Capital expenditures
     (885 )     —       —       —       —       —       —       —       —       —       (885 )    
Dividends/tax sharing to CMS
     (367 )     82       —       —       —       —       —       —       —       285       —      
 
                                                                    
Uses
   $ (1,677 )   $ 82     $ 224     $ 199     $ —     $ —     $ —     $ 35     $ 2     $ 285     $ (850 )   Net cash provided by
investing activities
 
                                                                                            
 
                                                                    
Cash flow
   $ (152 )   $ —     $ —     $ —     $ (120 )   $ 23     $ 34     $ —     $ 2     $ 285     $ 72     Cash flow from
operating and
investing activities
 
                                                                                            
Financing
                                                                                            
Equity
   $ 100     $ —     $ —     $ —     $ —     $ —     $ —     $ —     $ (2 )   $ —     $ 98      
New Issues
     500       —       —       —       —       —       —       —       —       —       500      
Retirements
     (353 )     —       —       —       —       (23 )     (34 )     —       —       (285 )     (695 )    
Other
     (5 )     —       —       —       —       —       —       —       —       —       (5 )    
Net short-term financing
     (120 )     —       —       —       120       —       —       —       —       —       —      
 
                                                                    
Financing
   $ 122     $ —     $ —     $ —     $ 120     $ (23 )   $ (34 )   $ —     $ (2 )   $ (285 )   $ (102 )   Net cash provided by financing activities
 
                                                                                            
 
                                                                    
Net change in cash
   $ (30 )   $ —     $ —     $ —     $ —     $ —     $ —     $ —     $ —     $ —     $ (30 )   Net change in cash
 
                                                                                            
 
                                                                    
Cash at year end 2009
   $ 39     $ —     $ —     $ —     $ —     $ —     $ —     $ —     $ —     $ —     $ 39     Cash at year end 2009
 
                                                                    
2009 A-3

 

 

CMS Energy Parent
2009 Cash Flow GAAP Reconciliation (in millions) (unaudited)
                                                                         
            Reclassifications From Sources and Uses to Statement of Cash Flows        
Presentation Sources and Uses     Interest     Overheads &     Other     Preferred     Pref Stk     Cash From     Consolidated Statements of Cash Flows  
    non-GAAP     Payments     Tax Payments     Uses (a)     Dividends     Retirement     Consolidated     GAAP        
Description   Amount     as Operating     as Operating     as Operating     as Financing     as Operating     Companies     Amount     Description  
Cash at year end 2008
   $ 117     $ —     $ —     $ —     $ —     $ —     $ 21     $ 138       Cash at year end 2008
 
                                                                        
Sources
                                                                        
Consumers Energy dividends/tax sharing
   $ 367     $ (125 )   $ (19 )   $ —     $ —     $ (7 )   $ —     $ 216          
Enterprises
     16       —       —       (34 )     —       —       13       (5 )      
 
                                                      
Sources
   $ 383     $ (125 )   $ (19 )   $ (34 )   $ —     $ (7 )   $ 13     $ 211       Net cash provided by
operating activities
 
                                                                        
Uses
                                                                        
Interest and preferred dividends
   $ (136 )   $ 125     $ —     $ —     $ 11     $ —     $ —     $ —          
Overhead and Federal tax payments
     (19 )     —       19       —       —       —       —       —          
Pension Contributions
     (7 )     —       —       7       —       —       —       —          
Equity infusions
     (100 )     —       —       27       —       —       (82 )     (155 )      
 
                                                      
Uses (a)
   $ (292 )   $ 125     $ 19     $ 34     $ 11     $ —     $ (82 )   $ (185 )     Net cash provided by
investing activities
 
                                                                        
 
                                                      
Cash flow
   $ 91     $ —     $ —     $ —     $ 11     $ (7 )   $ (69 )   $ 26       Cash flow from
operating and
investing activities
 
                                                                        
Financing and dividends
                                                                        
New Issues
   $ 473     $ —     $ —     $ —     $ (11 )   $ 7     $ 71     $ 540          
Retirements
     (473 )     —       —       —       —       —       —       (473 )        
Net short-term financing
     (80 )     —       —       —       —       —       —       (80 )        
Other
     8       —       —       —       —       —       —       8          
Common dividend
     (113 )     —       —       —       —       —       —       (113 )      
 
                                                      
Financing
   $ (185 )   $ —     $ —     $ —     $ (11 )   $ 7     $ 71     $ (118 )     Net cash provided by
financing activities
 
                                                                        
 
                                                      
Net change in cash
   $ (94 )   $ —     $ —     $ —     $ —     $ —     $ 2     $ (92 )     Net change in cash
 
Changes in Cash included in asset held for sale
   $ —     $ —     $ —     $ —     $ —     $ —     $ 5     $ 5       Changes in Cash included
in asset held for sale
 
                                                                        
 
                                                      
Cash at year end 2009
   $ 23     $ —     $ —     $ —     $ —     $ —     $ 28     $ 51       Cash at year end 2009
 
                                                      
 
(a)   Includes other and roundings
2009 A-4

 

 

Consolidated CMS Energy
2009 Consolidation of Consumers Energy and CMS Energy Parent Statements of Cash Flow (in millions) (unaudited)
                                             
                    Eliminations/Reclassifications to Arrive at the        
                    Consolidated Statement of Cash Flows        
Statements of Cash Flows     Consumers     Equity        
    Consumers     CMS Parent     Common Dividend     Infusions to     Consolidated Statements of Cash Flows
Description   Amount     Amount     as Financing     Consumers     Amount     Description
Cash at year end 2008
   $ 69     $ 138     $ —     $ —     $ 207     Cash at year end 2008
 
                                            
Net cash provided by operating activities
   $ 922     $ 211     $ (285 )   $ —     $ 848     Net cash provided by
operating activities
 
                                            
Net cash provided by investing activities
     (850 )     (185 )     —       100       (935 )   Net cash provided by
investing activities
 
                                            
 
                                
Cash flow from operating and investing activities
   $ 72     $ 26     $ (285 )   $ 100     $ (87 )   Cash flow from operating and investing activities
 
                                            
Net cash provided by financing activities
   $ (102 )   $ (118 )   $ 285     $ (100 )   $ (35 )   Net cash provided by
financing activities
 
                                            
 
                                
Net change in cash
   $ (30 )   $ (92 )   $ —     $ —     $ (122 )   Net change in cash
 
                                            
Changes in Cash included in asset held for sale
   $ —     $ 5     $ —     $ —     $ 5     Changes in Cash included
in asset held for sale
 
                                            
 
                                
Cash at year end 2009
   $ 39     $ 51     $ —     $ —     $ 90     Cash at year end 2009
 
                                
2009 A-5

 

 

CMS Energy
Reconciliation of 2009 Operating Cash Flow Target to GAAP Operating Activities
(unaudited)
                     
    Amount              
    (mils)              
Consumers Operating (Consumers PTOI + Depreciation)
   $ 1,315              
Enterprises (Project Cash Flows)
     16              
 
                  
Operating Cash Flow
   $ 1,331     non-GAAP        
 
                    
Other operating activies including taxes, interest payments and working capital
     (483 )            
 
                  
Net cash provided by operating activites
   $ 848     GAAP        
 
                  
2010 A-4

 

 

     
Consumers Energy
2010 Forecasted Cash Flow GAAP Reconciliation (in millions) (unaudited)
                                                                                     
            Reclassifications From Sources and Uses to Statement of Cash Flows        
Presentation Sources and Uses     Tax     Interest     Pension     Accts/Rec     Capital     Securitization     Preferred     Common     Consolidated Statements of Cash Flows
    non-GAAP     Sharing     Payments     Contribution     Financing     Lease Pymts     Debt Pymts     Dividends     Dividends     GAAP      
Description   Amount     Operating     as Operating     as Operating     as Operating     as Financing     as Financing     as Financing     as Financing     Amount     Description
Cash at year end 2009
   $ 39     $ —     $ —     $ —     $ —     $ —     $ —     $ —     $ —     $ 39     Cash at year end 2009
 
                                                                                    
Sources
                                                                                    
Operating
   $ 1,450     $ (235 )   $ (221 )   $ —     $ —     $ 23     $ 35     $ —     $ —     $ 1,052      
Other working capital
     (135 )     —       —       (97 )     (50 )     —       —       —       —       (282 )    
 
                                                                
Sources
   $ 1,315     $ (235 )   $ (221 )   $ (97 )   $ (50 )   $ 23     $ 35     $ —     $ —     $ 770     Net cash provided by operating activities
 
                                                                                    
Uses
                                                                                    
Interest and preferred dividends
   $ (223 )   $ —     $ 221     $ —     $ —     $ —     $ —     $ 2     $ —     $ —      
Pension Contribution
     (97 )     —       —       97       —       —       —       —       —       —      
Capital expenditures
     (1,010 )     —       —       —       —       —       —       —       —       (1,010 )    
Dividends/tax sharing to CMS
     (570 )     235       —       —       —       —       —       —       335       —      
 
                                                                
Uses
   $ (1,900 )   $ 235     $ 221     $ 97     $ —     $ —     $ —     $ 2     $ 335     $ (1,010 )   Net cash provided by investing activities
 
                                                                
Cash flow
   $ (585 )   $ —     $ —     $ —     $ (50 )   $ 23     $ 35     $ 2     $ 335     $ (240 )   Cash flow from operating and investing activities
 
                                                                                    
Financing
                                                                                    
Equity
   $ 250     $ —     $ —     $ —     $ —     $ —     $ —     $ (2 )   $ —     $ 248      
New Issues
     550       —       —       —       —       —       —       —       —       550      
Retirements
     (310 )     —       —       —       —       (23 )     (35 )     —       (335 )     (703 )    
Net short-term financing & other
     81       —       —       —       50       —       —       —       —       131      
 
                                                                
Financing
   $ 571     $ —     $ —     $ —     $ 50     $ (23 )   $ (35 )   $ (2 )   $ (335 )   $ 226     Net cash provided by financing activities
 
                                                                                    
 
                                                              
Net change in cash
   $ (14 )   $ —     $ —     $ —     $ —     $ —     $ —     $ —     $ —     $ (14 )   Net change in cash
 
                                                                                    
 
                                                                
Cash at year end 2010
   $ 25     $ —     $ —     $ —     $ —     $ —     $ —     $ —     $ —     $ 25     Cash at year end 2010
 
                                                                
2010 A-3

 

 

     
CMS Energy Parent
2010 Forecasted Cash Flow GAAP Reconciliation (in millions) (unaudited)
                                                             
            Reclassifications From Sources and Uses to Statement of Cash Flows        
Presentation Sources and Uses     Interest     Overheads &     Other     Preferred     Cash From     Consolidated Statements of Cash Flows
    non-GAAP     Payments     Tax Payments     Uses (a)     Dividends     Consolidated     GAAP      
Description   Amount     as Operating     as Operating     as Operating     as Financing     Companies     Amount     Description
Cash at year end 2009
   $ 23     $ —     $ —     $ —     $ —     $ 28     $ 51     Cash at year end 2009
 
                                                            
Sources
                                                            
Consumers Energy dividends/tax sharing
   $ 570     $ (124 )   $ (30 )   $ —     $ —     $ —     $ 416      
Enterprises
     35                                               35      
Insurance settlement
     50       —       —       (45 )     —       5       10      
 
                                              
Sources
   $ 655     $ (124 )   $ (30 )   $ (45 )   $ —     $ 5     $ 461     Net cash provided by operating activities
 
                                                            
Uses
                                                            
Interest and preferred dividends
   $ (135 )   $ 124     $ —     $ —     $ 11     $ —     $ —      
Overhead and Federal tax payments
     (30 )     —       30       —       —       —       —      
Pension Contributions
     (3 )     —       —       3       —       —       —      
Equity infusions
     (250 )     —       —       42       —       (48 )     (256 )    
 
                                              
Uses (a)
   $ (460 )   $ 124     $ 30     $ 45     $ 11     $ (48 )   $ (298 )   Net cash provided by investing activities
 
                                                            
 
                                            
Cash flow
   $ 195     $ —     $ —     $ —     $ 11     $ (43 )   $ 163     Cash flow from operating and investing activities
 
                                                            
Financing and dividends
                                                            
New Issues
   $ 300     $ —     $ —     $ —     $ (11 )   $ 26     $ 315      
Retirements
     (80 )     —       —       —       —       —       (80 )    
Net short-term financing & other
     (21 )     —       —       —       —       —       (21 )    
Common dividend
     (137 )     —       —       —       —       —       (137 )    
 
                                              
Financing
   $ 62     $ —     $ —     $ —     $ (11 )   $ 26     $ 77     Net cash provided by financing activities
 
                                                            
 
                                            
Net change in cash
   $ 257     $ —     $ —     $ —     $ —     $ (17 )   $ 240     Net change in cash
 
                                                            
 
                                            
Cash at year end 2010
   $ 280     $ —     $ —     $ —     $ —     $ 11     $ 291     Cash at year end 2010
 
                                              
 
(a)   Includes other and roundings
2010 A-4

 

 

Consolidated CMS Energy
2010 Forecasted Consolidation of Consumers Energy and CMS Energy Parent Statements of Cash Flow (in millions) (unaudited)
                                             
                    Eliminations/Reclassifications to Arrive at the      
                    Consolidated Statement of      
                    Cash Flows      
Statements of Cash Flows     Consumers     Equity        
    Consumers     CMS Parent     Common Dividend     Infusions to     Consolidated Statements of Cash Flows
Description   Amount     Amount     as Financing     Consumers     Amount     Description
Cash at year end 2009
   $ 39     $ 51     $ —     $ —     $ 90     Cash at year end 2009
 
                                            
Net cash provided by operating activities
   $ 770     $ 461     $ (335 )   $ —     $ 896     Net cash provided by operating activities
 
                                            
Net cash provided by investing activities
     (1,010 )     (298 )     —       250       (1,058 )   Net cash provided by investing activities
 
                                
 
                                            
Cash flow from operating and investing activities
   $ (240 )   $ 163     $ (335 )   $ 250     $ (162 )   Cash flow from operating and investing activities
 
                                            
Net cash provided by financing activities
   $ 226     $ 77     $ 335     $ (250 )   $ 388     Net cash provided by financing activities
 
                                            
 
                                
Net change in cash
   $ (14 )   $ 240     $ —     $ —     $ 226     Net change in cash
 
                                            
 
                                
Cash at year end 2010
   $ 25     $ 291     $ —     $ —     $ 316     Cash at year end 2010
 
                                  
2010 A-5

 

 

CMS Energy
Reconciliation of 2010 Operating Cash Flow Target to GAAP Operating Activities
(unaudited)
             
    Amount      
    (mils)      
Consumers Operating (Consumers PTOI + Depreciation)
   $ 1,450      
Enterprises (Project Cash Flows)
     35      
 
          
Operating Cash Flow
   $ 1,485     non-GAAP
 
Other operating activies including taxes, interest payments and working capital
     (589 )    
 
        
Net cash provided by operating activites
   $ 896     GAAP
 
          
2010 A-6