CMS ENERGY CORPORATION

Consolidated Statements of Income

(Unaudited)

In Millions, Except Per Share Amounts

Three Months Ended

Six Months Ended

6/30/20

6/30/19

6/30/20

6/30/19

Operating revenue

$

1,443

$

1,445

$

3,307

$

3,504

Operating expenses

1,170

1,227

2,666

2,927

Operating Income

273

218

641

577

Other income

32

27

71

50

Interest charges

141

131

278

252

Income Before Income Taxes

164

114

434

375

Income tax expense

27

20

54

68

Net Income

137

94

380

307

Income attributable to noncontrolling interests

1

1

1

1

Net Income Available to Common Stockholders

$

136

$

93

$

379

$

306

Basic Earnings Per Average Common Share

$

0.48

$

0.33

$

1.33

$

1.08

Diluted Earnings Per Average Common Share

0.48

0.33

1.33

1.08

CMS ENERGY CORPORATION

Summarized Consolidated Balance Sheets

(Unaudited)

In Millions

As of

6/30/20

12/31/19

Assets

Current assets

Cash and cash equivalents

$

1,587

$

140

Restricted cash and cash equivalents

17

17

Other current assets

1,928

2,174

Total current assets

3,532

2,331

Non-current assets

Plant, property, and equipment

19,436

18,926

Other non-current assets

5,613

5,580

Total Assets

$

28,581

$

26,837

Liabilities and Equity

Current liabilities ⁽¹⁾

$

1,379

$

1,484

Non-current liabilities ⁽¹⁾

6,726

7,051

Capitalization

Debt, finance leases, and other financing (excluding securitization debt) ⁽²⁾

Debt, finance leases, and other financing (excluding non-recourse and securitization debt)

12,381

10,518

Non-recourse debt

2,606

2,478

Total debt, finance leases, and other financing (excluding securitization debt)

14,987

12,996

Noncontrolling interests

37

37

Common stockholders' equity

5,214

5,018

Total capitalization (excluding securitization debt)

20,238

18,051

Securitization debt ⁽²⁾

238

251

Total Liabilities and Equity

$

28,581

$

26,837

⁽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

Six Months Ended

6/30/20

6/30/19

Beginning of Period Cash and Cash Equivalents, Including Restricted Amounts

$

157

$

175

Net cash provided by operating activities ⁽³⁾

796

1,185

Net cash used in investing activities

(1,168)

(1,410)

Cash flows from operating and investing activities

(372)

(225)

Net cash provided by financing activities

1,819

384

Total Cash Flows

$

1,447

$

159

End of Period Cash and Cash Equivalents, Including Restricted Amounts

$

1,604

$

334

⁽³⁾ Includes the impact of a $531 million pension contribution in 2020.

CMS ENERGY CORPORATION

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

(Unaudited)

In Millions, Except Per Share Amounts

Three Months Ended

Six Months Ended

6/30/20

6/30/19

6/30/20

6/30/19

Net Income Available to Common Stockholders

$

136

$

93

$

379

$

306

Reconciling items:

Other exclusions from adjusted earnings

4

 * 

7

 * 

Tax impact

(1)

(*)

(1)

(*)

Tax reform

-

-

(9)

-

Voluntary separation program

(*)

-

11

-

Tax impact

* 

-

(3)

-

Adjusted net income – non-GAAP

$

139

$

93

$

384

$

306

Average Common Shares Outstanding

Basic

285.5

282.9

284.4

282.9

Diluted

286.5

284.0

285.8

283.8

Basic Earnings Per Average Common Share

Reported net income per share

$

0.48

$

0.33

$

1.33

$

1.08

Reconciling items:

Other exclusions from adjusted earnings

0.02

 * 

0.03

 * 

Tax impact

(0.01)

(*)

(0.01)

(*)

Tax reform

-

-

(0.03)

-

Voluntary separation program

(*)

-

0.04

-

Tax impact

 * 

-

(0.01)

-

Adjusted net income per share – non-GAAP

$

0.49

$

0.33

$

1.35

$

1.08

Diluted Earnings Per Average Common Share

Reported net income per share

$

0.48

$

0.33

$

1.33

$

1.08

Reconciling items:

Other exclusions from adjusted earnings

0.02

 * 

0.03

 * 

Tax impact

(0.01)

(*)

(0.01)

(*)

Tax reform

-

-

(0.03)

-

Voluntary separation program

(*)

-

0.04

-

Tax impact

 * 

-

(0.01)

-

Adjusted net income per share – non-GAAP

$

0.49

$

0.33

$

1.35

$

1.08

*

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.