Financial Results and Outlook

    2020 Results

Amount

Reported EPS

$2.64

Adjusted EPS

$2.67

2021 Updates

Amount

Adjusted EPS Guidance

$2.83 - $2.87*

Annual Dividend

$1.74 (+7%)

CMS ENERGY CORPORATION
Consolidated Statements of Income
(Unaudited)

Twelve Months Ended

12/31/20

12/31/19

12/31/20

12/31/19

Operating revenue

$

1,798

$

1,795

$

6,680

$

6,845

Operating expenses

1,446

1,484

5,318

5,606

Operating Income

352

311

1,362

1,239

Other income (expense)

(15)

28

84

109

Interest charges

140

134

561

519

Income Before Income Taxes

197

205

885

829

Income tax expense

35

37

133

147

Net Income

162

168

752

682

Income (loss) attributable to noncontrolling interests

4

1

(3)

2

Net Income Available to Common Stockholders

$

158

$

167

$

755

$

680

Basic Earnings Per Average Common Share

$

0.55

$

0.59

$

2.65

$

2.40

Diluted Earnings Per Average Common Share

0.55

0.58

2.64

2.39

CMS ENERGY CORPORATION
Summarized Consolidated Balance Sheets
(Unaudited)

In Millions

As of

12/31/20

12/31/19

Assets

Current assets

Cash and cash equivalents

$

168

$

140

Restricted cash and cash equivalents

17

17

Other current assets

2,219

2,174

Total current assets

2,404

2,331

Non-current assets

Plant, property, and equipment

21,039

18,926

Other non-current assets

6,223

5,580

Total Assets

$

29,666

$

26,837

Liabilities and Equity

Current liabilities ⁽¹⁾

$

1,568

$

1,484

Non-current liabilities ⁽¹⁾

6,825

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)

12,083

10,518

Non-recourse debt

2,888

2,478

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

14,971

12,996

Noncontrolling interests

581

37

Common stockholders' equity

5,496

5,018

Total capitalization (excluding securitization debt)

21,048

18,051

Securitization debt ⁽²⁾

225

251

Total Liabilities and Equity

$

29,666

$

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

Twelve Months Ended

12/31/20

12/31/19

Beginning of Period Cash and Cash Equivalents, Including Restricted Amounts

$

157

$

175

Net cash provided by operating activities ⁽³⁾

1,276

1,790

Net cash used in investing activities

(2,867)

(2,816)

Cash flows from operating and investing activities

(1,591)

(1,026)

Net cash provided by financing activities

1,619

1,008

Total Cash Flows

$

28

$

End of Period Cash and Cash Equivalents, Including Restricted Amounts

$

185

$

157

⁽³⁾  Includes the impact of $700 million of pension contributions 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

Twelve Months Ended

12/31/20

12/31/19

12/31/20

12/31/19

Net Income Available to Common Stockholders

$

158

$

167

$

755

$

680

Reconciling items:

Other exclusions from adjusted earnings

2

36

13

37

Tax impact

(1)

(9)

(3)

(9)

Tax reform

-

-

(9)

-

Voluntary separation program

* 

-

11

-

Tax impact

(*)

-

(3)

-

Adjusted net income – non-GAAP

$

159

$

194

$

764

$

708

Average Common Shares Outstanding

Basic

285.7

283.0

285.0

283.0

Diluted

286.9

284.8

286.3

284.3

Basic Earnings Per Average Common Share

Reported net income per share

$

0.55

$

0.59

$

2.65

$

2.40

Reconciling items:

Other exclusions from adjusted earnings

0.01

0.13

0.04

0.13

Tax impact

(*)

(0.03)

(0.01)

(0.03)

Tax reform

-

-

(0.03)

-

Voluntary separation program

* 

-

0.04

-

Tax impact

(*)

-

(0.01)

-

Adjusted net income per share – non-GAAP

$

0.56

$

0.69

$

2.68

$

2.50

Diluted Earnings Per Average Common Share

Reported net income per share

$

0.55

$

0.58

$

2.64

$

2.39

Reconciling items:

Other exclusions from adjusted earnings

0.01

0.13

0.04

0.13

Tax impact

(*)

(0.03)

(0.01)

(0.03)

Tax reform

-

-

(0.03)

-

Voluntary separation program

* 

-

0.04

-

Tax impact

(*)

-

(0.01)

-

Adjusted net income per share – non-GAAP

$

0.56

$

0.68

$

2.67

$

2.49

*

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.