CMS ENERGY CORPORATION

Consolidated Statements of Income

(Unaudited)

In Millions, Except Per Share Amounts

Three Months Ended

Nine Months Ended

9/30/18

9/30/17

9/30/18

9/30/17

Operating revenue

$

1,599

$

1,527

$

5,044

$

4,805

Operating expenses

1,305

1,197

4,132

3,846

Operating Income

294

330

912

959

Other income

22

10

73

33

Interest charges

114

111

337

328

Income Before Income Taxes

202

229

648

664

Income tax expense

33

57

98

200

Net Income

169

172

550

464

Income attributable to noncontrolling interests

-

-

1

1

Net Income Available to Common Stockholders

$

169

$

172

$

549

$

463

Basic Earnings Per Average Common Share

$

0.60

$

0.61

$

1.95

$

1.65

Diluted Earnings Per Average Common Share

0.59

0.61

1.94

1.65

CMS ENERGY CORPORATION

Summarized Consolidated Balance Sheets

(Unaudited)

In Millions

As of

9/30/18

12/31/17

Assets

Current assets

Cash and cash equivalents

$

323

$

182

Restricted cash and cash equivalents

42

17

Other current assets

2,009

2,276

Total current assets

2,374

2,475

Non-current assets

Plant, property, and equipment

17,790

16,761

Other non-current assets

3,749

3,814

Total Assets

$

23,913

$

23,050

Liabilities and Equity

Current liabilities ⁽¹⁾

$

1,192

$

1,511

Non-current liabilities ⁽¹⁾

6,741

6,574

Capitalization

Debt, capital leases, and financing obligation (excluding securitization debt) ⁽²⁾

Debt, capital leases, and financing obligation (excluding non-recourse and securitization debt)

9,370

8,940

Non-recourse debt

1,534

1,245

Total debt, capital leases, and financing obligation (excluding securitization debt)

10,904

10,185

Noncontrolling interests

37

37

Common stockholders' equity

4,749

4,441

Total capitalization (excluding securitization debt)

15,690

14,663

Securitization debt ⁽²⁾

290

302

Total Liabilities and Equity

$

23,913

$

23,050

⁽¹⁾ Excludes debt, capital leases, and financing obligation.

⁽²⁾ Includes current and non-current portions.

CMS ENERGY CORPORATION

Summarized Consolidated Statements of Cash Flows

(Unaudited)

In Millions

Nine Months Ended

9/30/18

9/30/17

Beginning of Period Cash and Cash Equivalents, Including Restricted Amounts

$

204

$

257

Net cash provided by operating activities

1,565

1,199

Net cash used in investing activities

(1,815)

(1,354)

Cash flows from operating and investing activities

(250)

(155)

Net cash provided by financing activities

412

71

Total Cash Flows

$

162

$

(84)

End of Period Cash and Cash Equivalents, Including Restricted Amounts

$

366

$

173

CMS ENERGY CORPORATION

Reconciliation of GAAP Net Income to Non-GAAP Adjusted Net Income

(Unaudited)

In Millions, Except Per Share Amounts

Three Months Ended

Nine Months Ended

9/30/18

9/30/17

9/30/18

9/30/17

Net Income Available to Common Stockholders

$

169

$

172

$

549

$

463

Reconciling items:

Discontinued operations (income) loss

(*)

*

(*)

* 

Restructuring costs and other

* 

1

1

3

Tax impact

(*)

(*)

(*)

(1)

Gain on assets previously sold

-

-

(4)

-

Tax impact

-

-

1

-

Adjusted net income – non-GAAP

$

169

$

173

$

547

$

465

Average Common Shares Outstanding

Basic

282.5

280.8

282.1

279.8

Diluted

283.2

281.6

282.8

280.6

Basic Earnings Per Average Common Share

Reported net income per share

$

0.60

$

0.61

$

1.95

$

1.65

Reconciling items:

Discontinued operations (income) loss

(*)

* 

(*)

* 

Restructuring costs and other

* 

0.01

* 

0.01

Tax impact

(*)

(*)

(*)

(*)

Gain on assets previously sold

-

-

(0.01)

-

Tax impact

-

-

* 

-

Adjusted net income per share – non-GAAP

$

0.60

$

0.62

$

1.94

$

1.66

Diluted Earnings Per Average Common Share

Reported net income per share

$

0.59

$

0.61

$

1.94

$

1.65

Reconciling items:

Discontinued operations (income) loss

(*)

* 

(*)

* 

Restructuring costs and other

* 

0.01

* 

0.01

Tax impact

(*)

(*)

(*)

(*)

Gain on assets previously sold

-

-

(0.01)

-

Tax impact

-

-

* 

-

Adjusted net income per share – non-GAAP

$

0.59

$

0.62

$

1.93

$

1.66

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

Management views adjusted (non-Generally Accepted Accounting Principles) 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.  Adjustments could include items such as discontinued operations, asset sales, impairments, restructuring costs, regulatory items from prior years, or other items detailed in these summary financial statements.  Adjusted earnings should be considered supplemental information to assist in understanding our business results, rather than as a substitute for reported earnings.