CMS ENERGY CORPORATION
Consolidated Statements of Income
(Unaudited)

In Millions, Except Per Share Amounts

Nine Months Ended

9/30/21

9/30/20

9/30/21

9/30/20

Operating revenue

$

1,725

$

1,507

$

5,296

$

4,691

Operating expenses

1,465

1,167

4,354

3,768

Operating Income

260

340

942

923

Other income

44

28

136

99

Interest charges

125

130

374

378

Income Before Income Taxes

179

238

704

644

Income tax expense

26

40

90

88

Income From Continuing Operations

153

198

614

556

Income from discontinued operations, net of tax

30

12

82

34

Net Income

183

210

696

590

Loss attributable to noncontrolling interests

(6)

(8)

(18)

(7)

Net Income Attributable to CMS Energy

189

218

714

597

Preferred stock dividends

3

-

3

-

Net Income Available to Common Stockholders

$

186

$

218

$

711

$

597

Basic Earnings Per Average Common Share

Income from continuing operations per average common share
    available to common stockholders

$

0.54

$

0.72

$

2.18

$

1.98

Income from discontinued operations per average common share
    available to common stockholders

0.10

0.04

0.28

0.12

Basic earnings per average common share

$

0.64

$

0.76

$

2.46

$

2.10

Diluted Earnings Per Average Common Share

Income from continuing operations per average common share
    available to common stockholders

$

0.54

$

0.72

$

2.18

$

1.97

Income from discontinued operations per average common share
    available to common stockholders

0.10

0.04

0.28

0.12

Diluted earnings per average common share

$

0.64

$

0.76

$

2.46

$

2.09

CMS ENERGY CORPORATION
Summarized Consolidated Balance Sheets
(Unaudited)

In Millions

As of

9/30/21

12/31/20

Assets

Current assets

Cash and cash equivalents

$

102

$

32

Restricted cash and cash equivalents

30

17

Assets held for sale

494

429

Other current assets

1,851

1,926

Total current assets

2,477

2,404

Non-current assets

Plant, property, and equipment

21,934

21,017

Assets held for sale

2,606

2,680

Other non-current assets

3,496

3,565

Total Assets

$

30,513

$

29,666

Liabilities and Equity

Current liabilities ⁽¹⁾

      Liabilities held for sale

$

1,233

$

953

      Other current liabilities

1,436

1,530

Total current liabilities

2,669

2,483

Non-current liabilities ⁽¹⁾

      Liabilities held for sale

1,523

1,894

      Other non-current liabilities

7,008

6,821

Total non-current liabilities

8,531

8,715

Capitalization

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

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

12,370

12,083

Non-recourse debt

79

83

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

12,449

12,166

Preferred stock and securities

224

-

Noncontrolling interests

563

581

Common stockholders' equity

5,866

5,496

Total capitalization (excluding securitization debt)

19,102

18,243

Securitization debt ⁽²⁾

211

225

Total Liabilities and Equity

$

30,513

$

29,666

⁽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

Nine Months Ended

9/30/21

9/30/20

Beginning of Period Cash and Cash Equivalents, Including Restricted Amounts

$

185

$

157

Net cash provided by operating activities ⁽³⁾

1,483

1,144

Net cash used in investing activities

(1,460)

(2,298)

Cash flows from operating and investing activities

23

Net cash provided by financing activities

28

1,555

Total Cash Flows

$

51

$

401

End of Period Cash and Cash Equivalents, Including Restricted Amounts⁽⁴⁾

$

236

$

558

⁽³⁾

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

⁽⁴⁾

In June 2021, CMS Energy entered into an agreement for EnerBank to merge with Regions Bank.  As a result, EnerBank's cash and cash equivalents are presented as assets held for sale on CMS Energy's consolidated balance sheets at September 30, 2021 and September 30, 2020.

CMS ENERGY CORPORATION
Reconciliation of GAAP to Non-GAAP Adjusted Income from Continuing Operations
(Unaudited)

In Millions, Except Per Share Amounts

Three Months Ended

Nine Months Ended

9/30/21

9/30/20

9/30/21

9/30/20

Net Income Available to Common Stockholders

$

186

$

218

$

711

$

597

Reconciling items:

Disposal of discontinued operations (gain) loss

3

-

8

-

Tax impact

(1)

-

(2)

-

Discontinued operations income

(42)

(16)

(115)

(44)

Tax impact

10

4

27

10

Other exclusions from adjusted earnings**

(*)

4

(1)

11

Tax impact

* 

(1)

 * 

(2)

Tax reform

-

-

-

(9)

Voluntary separation program

-

* 

-

11

Tax impact

-

(*)

-

(3)

Adjusted income from continuing operations – non-GAAP

$

156

$

209

$

628

$

571

Average Common Shares Outstanding

Basic

289.1

285.6

288.9

284.8

Diluted

289.6

286.9

289.4

286.3

Basic Earnings Per Average Common Share

Reported net income per average common share

$

0.64

$

0.76

$

2.46

$

2.10

Reconciling items:

Disposal of discontinued operations (gain) loss

0.01

-

0.03

-

Tax impact

(*)

-

(0.01)

-

Discontinued operations income

(0.14)

(0.05)

(0.39)

(0.15)

Tax impact

0.03

0.01

0.09

0.03

Other exclusions from adjusted earnings**

(*)

0.01

(*)

0.03

Tax impact

* 

 (*) 

 * 

(0.01)

Tax reform

-

-

-

(0.03)

Voluntary separation program

-

 *  

-

0.04

Tax impact

-

 (*) 

-

(0.01)

Adjusted income from continuing operations per average common share – non-GAAP

$

0.54

$

0.73

$

2.18

$

2.00

Diluted Earnings Per Average Common Share

Reported net income per average common share

$

0.64

$

0.76

$

2.46

$

2.09

Reconciling items:

Disposal of discontinued operations (gain) loss

0.01

-

0.03

-

Tax impact

(*)

-

(0.01)

-

Discontinued operations income

(0.14)

(0.05)

(0.39)

(0.15)

Tax impact

0.03

0.01

0.09

0.03

Other exclusions from adjusted earnings**

(*)

0.01

(*)

0.03

Tax impact

* 

 (*) 

* 

(0.01)

Tax reform

-

-

-

(0.03)

Voluntary separation program

-

 *  

-

0.04

Tax impact

-

 (*) 

-

(0.01)

Adjusted income from continuing operations per average common share – non-GAAP

$

0.54

$

0.73

$

2.18

$

1.99

*

Less than $0.5 million or $0.01 per share.

**

Includes restructuring costs and unrealized gains or losses from mark-to-market adjustments recognized in net income related to CMS Enterprises' interest expense.

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, changes in accounting principles, changes in federal tax policy, regulatory items from prior years, unrealized gains or losses from mark-to-market adjustments recognized in net income related to CMS Enterprises' interest expense, or other items.  The adjusted earnings should be considered supplemental information to assist in understanding our business results, rather than as a substitute for reported earnings.  

CMS ENERGY CORPORATION
Reconciliation of GAAP to Non-GAAP Adjusted Income from Continuing Operations
(Unaudited)

In Millions, Except Per Share Amounts

Three Months Ended

Nine Months Ended

9/30/21

9/30/20

9/30/21

9/30/20

Income Available to Common Stockholders

Reported income from continuing operations available to common stockholders

$

156

$

206

$

629

$

563

Reconciling items:

Other exclusions from adjusted earnings**

(*)

4

(1)

11

Tax impact

* 

(1)

 * 

(2)

Tax reform

-

-

-

(9)

Voluntary separation program

-

* 

-

11

Tax impact

-

(*)

-

(3)

Adjusted income from continuing operations – non-GAAP

$

156

$

209

$

628

$

571

Average Common Shares Outstanding

Basic

289.1

285.6

288.9

284.8

Diluted

289.6

286.9

289.4

286.3

Basic Earnings Per Average Common Share

Reported income from continuing operations per average common share
    available to common stockholders

$

0.54

$

0.72

$

2.18

$

1.98

Reconciling items:

Other exclusions from adjusted earnings**

(*)

0.01

(*)

0.03

Tax impact

 * 

 (*) 

 * 

(0.01)

Tax reform

-

-

-

(0.03)

Voluntary separation program

-

 *  

-

0.04

Tax impact

-

 (*) 

-

(0.01)

Adjusted income from continuing operations per average common share – non-GAAP

$

0.54

$

0.73

$

2.18

$

2.00

Diluted Earnings Per Average Common Share

Reported income from continuing operations per average common share
    available to common stockholders

$

0.54

$

0.72

$

2.18

$

1.97

Reconciling items:

Other exclusions from adjusted earnings**

(*)

0.01

(*)

0.03

Tax impact

 * 

 (*) 

 * 

(0.01)

Tax reform

-

-

-

(0.03)

Voluntary separation program

-

 *  

-

0.04

Tax impact

-

 (*) 

-

(0.01)

Adjusted income from continuing operations per average common share – non-GAAP

$

0.54

$

0.73

$

2.18

$

1.99

*

Less than $0.5 million or $0.01 per share.

**

Includes restructuring costs and unrealized gains or losses from mark-to-market adjustments recognized in net income related to CMS Enterprises' interest expense.

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, changes in accounting principles, changes in federal tax policy, regulatory items from prior years, unrealized gains or losses from mark-to-market adjustments recognized in net income related to CMS Enterprises' interest expense, or other items.  The adjusted earnings should be considered supplemental information to assist in understanding our business results, rather than as a substitute for reported earnings.