Third Quarter 2017 Results & Outlook October 26, 2017 CMS MODEL: CONSISTENT PAST WITH A SUSTAINABLE FUTURE

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Madison Hill
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1 Third Qurter 2017 Results & Outlook October 26, 2017 CMS MODEL: CONSISTENT PAST WITH A SUSTAINABLE FUTURE

2 This presenttion is mde s of the dte hereof nd contins forwrd-looking sttements s defined in Rule 3b-6 of the Securities Exchnge Act of 1934, Rule 175 of the Securities Act of 1933, nd relevnt legl decisions. The forwrd-looking sttements re subject to risks nd uncertinties. All forwrd-looking sttements should be considered in the context of the risk nd other fctors detiled from time to time in CMS Energy s nd Consumers Energy s Securities nd Exchnge Commission filings. Forwrd-looking sttements should be red in conjunction with FORWARD-LOOKING STATEMENTS AND INFORMATION nd RISK FACTORS sections of CMS Energy s nd Consumers Energy s Form 10-K for the yer ended December 31, 2016 nd s updted in subsequent 10-Qs. CMS Energy s nd Consumers Energy s FORWARD-LOOKING STATEMENTS AND INFORMATION nd RISK FACTORS sections re incorported herein by reference nd discuss importnt fctors tht could cuse CMS Energy s nd Consumers Energy s results to differ mterilly from those nticipted in such sttements. CMS Energy nd Consumers Energy undertke no obligtion to updte ny of the informtion presented herein to reflect fcts, events or circumstnces fter the dte hereof. The presenttion lso includes non-gaap mesures when describing CMS Energy s results of opertions nd finncil performnce. A reconcilition of ech of these mesures to the most directly comprble GAAP mesure is included in the ppendix nd posted on our website t CMS Energy provides historicl finncil results on both reported (GAAP) nd djusted (non-gaap) bsis nd provides forwrd-looking guidnce on n djusted bsis. During n orl presenttion, references to ernings re on n djusted bsis. Adjustments could include items such s discontinued opertions, sset sles, impirments, restructuring costs, regultory items from prior yers, or other items. Mngement views djusted ernings s key mesure of the compny s present operting finncil performnce nd uses djusted ernings for externl communictions with nlysts nd investors. Internlly, the compny uses djusted ernings to mesure nd ssess performnce. Becuse the compny is not ble to estimte the impct of specific line items tht hve the potentil to significntly impct, fvorbly or unfvorbly, the compny's reported ernings in future periods, the compny is not providing reported ernings guidnce nor is it providing reconcilition for the comprble future period ernings. The djusted ernings should be considered supplementl informtion to ssist in understnding our business results, rther thn s substitute for the reported ernings. Similrly, mngement views djusted operting nd mintennce (O&M) expenses s n importnt mesure of operting efficiency. This mesure excludes expenses relted to energy efficiency becuse they hve no impct on net income, s well s certin historicl mounts tht reduce comprbility to the current period. Other djustments could include restructuring costs nd regultory items from prior yers. Becuse the compny is not ble to estimte the impct of specific line items tht hve the potentil to significntly impct reported mintennce nd other operting expenses, the compny is not providing reconcilition for the comprble future period expenses. Adjusted wether-normlized ernings re provided to show the impct of devitions from norml wether. Investors nd others should note tht CMS Energy routinely posts importnt informtion on its website nd considers the Investor Reltions section, chnnel of distribution. 1

3 Agend Business Updte People, Plnet, Profit Ptti Poppe President & CEO PEOPLE PLANET PROFIT Performnce -- The Consumers Energy Wy Finncil Results & Outlook Third Qurter; Full Yer Rejji Hyes Executive VP & CFO 2

4 EPS Results nd Guidnce... First Nine Months 2017 t $1.66: PROFIT up 8% from 2016 wether-normlized 2017 Full-Yer guidnce rised: to $ $2.18, up 6% to 8% 2018 Full-Yer guidnce introduced: t $ $2.33, up 6% to 8% Future long-term nnul growth: t 6% to 8% Adjusted EPS (non-gaap) Results nd Guidnce... rised! 3

5 The Triple Bottom Line... PEOPLE PLANET PROFIT PEOPLE PLANET PROFIT PERFORMANCE... world clss performnce delivering hometown service. 4

genertion pln (IRP) Gs Sfety 7/31: Finl order; $29 MM; ROE 10.1% +$18 trcker 2018 $47 MM Oct./Nov.

6 Long-Term Regultory Plnning... Second Hlf Energy Lw Customer Benefits Trnsprency 12/1: Cpcity chrge determined (SRM) Q2: File long-term genertion pln (IRP) Gs Sfety 7/31: Finl order; $29 MM; ROE 10.1% +$18 trcker 2018 $47 MM Oct./Nov.: File New cse 1/1: Gs investment trcker $18 MM Order by 10 months Electric Relibility 10/1: Self-impl.; $130 MM 1/31: File 5-yr electric dist. pln By 3/30: Finl order... provides significnt customer vlue nd investment certinty. 5

Story of the Month... Lower = Better Minutes 70 60 50 40 30 20 10 0 SAIDI Performnce (Q3 Storm Seson) 69.3 Down 40%! 41.5 Best performnce ever!

7 Story of the Month... Lower = Better Minutes SAIDI Performnce (Q3 Storm Seson) 69.3 Down 40%! 41.5 Best performnce ever! 10-yr Averge 2017 CE Wy Driven: Qulity Prioritized customer investment Trgeted circuits for tree-trimming Reduced niml interference... opertionl excellence despite mjor storm ctivity. 6

8 First Nine Months of Yer-to-Dte EPS (GAAP) Adjustment Results Adjusted (non-gaap) Wether-normlized $ $1.73 $ $1.66 $1.71 $ % By Business Segment Utility Enterprises Interest & other Compny Actul $ (0.20) $1.66 EPS Better thn Pln $ $0.16 Third Qurter EPS (GAAP) Adjustment Adjusted (non-gaap) Wether-normlized % Adjusted EPS (non-gaap)... substntilly stronger thn pln.

2017 EPS... First Nine Months Three Months To Go $2.15 - $2.18 6% - 8% $2.02 8 4 5 8 3 9-12 (24) YTD $1.

9 2017 EPS... First Nine Months Three Months To Go $ $2.18 6% - 8% $ (24) YTD $1.73 Mnging Work Our Model customer rtes <2% Q Discretionry Activities: Debt Pre-funding Foundtion & Low Income Other Totl YTD $ Wether & Storms Adjusted EPS (non-gaap) Cost Svings Rtes & Investment Economy, Enterprises, & Other Rtes & Investment Absence of 2016 Wether Cost Svings & Other on trck. 8

10 2017 Outlook... Adjusted EPS (non-gaap) Benefits Property txes Totl Wether & Storms 2016 Mild October Reinvestment Guidnce Recovery +6% to +8% Recovery Accelerted finncing Enterprises EE incentives O&M choices Sles mix & other Totl Recovery Income txes Enhnced cpitliztion EE incentives Sles mix & other Totl Jnury Mrch 31 June 30 September 30 Tody December 31 Adjusted EPS (non-gaap)... on trck to deliver 6% to 8% growth despite erly chllenges. 9

11 Simple, Perhps Unique Model... Customer investment (relibility, costs, enviro mndtes) Self Funding: - O&M cost reductions - Sles growth - No block equity dilution & other INVESTMENT SELF-FUNDED Rte increse t or below infltion Pln 6% - 8% 2-3 pts pts < 2% Consumers non-gaap... continues to drive sustinble growth. 10

12 Customer Investment... Detil Cpex $ (Bn) Gs Meter Instlltions (2019): 1.1 MM Gs Distribution: 25 yers of replcements Gs Electric Totl Pln Gs Trnsmission: 75% of miles pre-1970 Opportunities Pln With Ops 7 $25 Electric HVD System: 1/3 pst useful life Electric LVD System: Older thn vg. utility... improves relibility nd sfety. 11

13 Our Entire Cost Structure... Cost Components Above Mrket Costs 100% 90% 80% 70% 60% Fuel nd Power Costs ~70% PPA Fuel Down $166 MM or 7% nnully PPA Fuel % 40% O&M Operting Costs O&M Reductions in Rtes 30% 20% Txes Cpitl Investments $659 Down $87 MM or 3% nnully $572 10% 0% Cse U b Cse U Cost of Cpitl provides opportunities to lower costs nd crete hedroom. b 12

Operting Csh Flow Funds... Up $1.8 billion since 2004! Amount (Bn) $ 2.9 2.4 1.9 $1.9 Gross operting csh flow up > $0.1 billion per yer $2.1 $1.63 $2.2 $1.65 $2.3 $2.6 $2.

14 Operting Csh Flow Funds... Up $1.8 billion since 2004! Amount (Bn) $ $1.9 Gross operting csh flow up > $0.1 billion per yer $2.1 $1.63 $2.2 $1.65 $2.3 $2.6 $2.7 Interest, working cpitl nd txes Up $0.8 billion $2.9 NOLs void need for block equity (0.1) Investment Csh flow before dividend (0.6) Non-GAAP Operting csh flow NOLs & Credits $0.7 $0.9 $0.9 $0.9 $0.6 $0.5 $ investments without block equity. 13

EPS Guidnce Reflects... EPS $2.60 +8% $2.33 +6% +7% $2.18 $2.29 +7% $1.89 $2.02 $2.15 $2.

15 EPS Guidnce Reflects... EPS $ % $ % +7% $2.18 $ % $1.89 $2.02 $2.15 $2.14 Actul Guidnce Future Adjusted EPS (non-gaap)... 6% to 8% nnul growth. 14

Investment (Bn) O&M Reductions Col Cpcity b $18 (10)%

People Plnet Profit 2003 2004 2005 2006 2007 2008

2019 2020 2025 2003 Adjusted EPS (non-gaap) b

16 NEW ENERGY LAW Sustinble Future... 7% CAGR Opportunities TSR c PPA Replcements Grid Moderniztion Gs Infr. Future +6% to +8% More Renewbles Pln Ops EPS Customer Investment (Bn) O&M Reductions Col Cpcity b $18 (10)% 21 % $25 (15)% 15 % Recession Dividend Recession People Plnet Profit Adjusted EPS (non-gaap) b Consumers non-gaap c Adjusted EPS + dividend yield 2016 Future... driven lrgely by customer investment nd cost performnce. 15

17 Q & A Thnk you! See you t EEI. 16

18 GAAP Reconcilition

19 CMS ENERGY CORPORATION Ernings Per Shre By Yer GAAP Reconcilition (Unudited) Reported ernings (loss) per shre - GAAP ($0.30) $0.64 ($0.44) ($0.41) ($1.02) $1.20 $0.91 $1.28 $1.58 $1.42 $1.66 $1.74 $1.89 $1.98 Pretx items: Electric nd gs utility 0.32 (0.60) - - (0.06) Tx impct (0.11) (0.01) (0.03) (0.22) (0.02) - (0.10) (0.01) Enterprises (0.12) 1.67 (0.02) 0.14 (0.05) * (0.01) * 0.05 * * Tx impct (0.19) (0.35) (0.02) 0.10 (0.42) * (0.05) 0.02 (0.11) * (*) (0.02) (*) (*) Corporte interest nd other 0.25 (0.06) * - * * * * 0.02 Tx impct (0.09) 0.03 (0.02) (0.18) (0.49) (0.03) (*) (*) (0.01) (*) (*) (*) (*) (0.01) Discontinued opertions (income) loss, net (0.16) 0.02 (0.07) (0.03) 0.40 (*) (0.08) 0.08 (0.01) (0.03) * (*) (*) * Asset impirment chrges Tx impct - - (0.98) (0.31) (0.33) Cumultive ccounting chnges Tx impct (0.09) (0.01) Adjusted ernings per shre, including MTM - non-gaap $0.81 $0.87 $1.39 $0.57 $0.84 $1.21 () $1.26 $1.36 $1.45 $1.55 $1.66 $1.77 $1.89 $2.02 Mrk-to-mrket 0.04 (0.65) 0.80 Tx impct (0.01) 0.22 (0.29) Adjusted ernings per shre, excluding MTM - non-gaap NA $0.90 $0.96 $1.08 NA NA NA NA NA NA NA NA NA NA * Less thn $0.01 per shre. () $1.25 excluding discontinued Exeter opertions nd ccounting chnges relted to convertible debt nd restricted stock. 18

20 CMS ENERGY CORPORATION Ernings By Qurter nd Yer GAAP Reconcilition (Unudited) (In Millions, Except Per Shre Amounts) Q 2Q 3Q 4Q YTD Dec Net Income Avilble to Common Stockholders Reported - GAAP $164 $124 $186 $77 $551 Pretx items: Electric nd gs utility * 11 Tx impct - - (4) (*) (4) Enterprises * * * 1 1 Tx impct (*) (*) (*) (*) (*) Corporte interest nd other * * Tx impct (*) (*) (1) (2) (3) Discontinued opertions (income) loss * * (*) (*) * Adjusted net income - non-gaap $164 $124 $194 $81 $563 Averge shres outstnding, diluted Reported ernings per shre - GAAP $0.59 $0.45 $0.67 $0.28 $1.98 Pretx items: Electric nd gs utility * 0.04 Tx impct - - (0.01) (*) (0.01) Enterprises * * * * * Corporte interest nd other * * * Tx impct (*) (*) (*) (0.01) (0.01) Discontinued opertions (income) loss * * (*) (*) * Adjusted ernings per shre - non-gaap $0.59 $0.45 $0.70 $0.29 $2.02 (In Millions, Except Per Shre Amounts) Q 2Q 3Q Net Income Avilble to Common Stockholders Reported - GAAP $199 $92 $172 Pretx items: Electric nd gs utility Enterprises * * 1 Tx impct (*) (*) (*) Corporte interest nd other 1 1 * Tx impct (*) (1) (*) Discontinued opertions loss * * * Adjusted net income - non-gaap $200 $92 $173 Averge shres outstnding, diluted Reported ernings per shre - GAAP $0.71 $0.33 $0.61 Pretx items: Electric nd gs utility Enterprises * * * Corporte interest nd other * * 0.01 Tx impct (*) (*) (*) Discontinued opertions loss * * * Adjusted ernings per shre - non-gaap $0.71 $0.33 $0.62 Note: Yer-to-dte (YTD) EPS my not equl sum of qurters due to shre count differences. * Represents net (fter-tx) impct of less thn $500 thousnd or $0.01 per shre (unless segment is specificlly referenced by tx impcts). 19

21 CMS Energy Reconcilition of Gross Operting Csh Flow to GAAP Operting Activities (unudited) (mils) Consumers Operting Income + Deprecition & Amortiztion $ 1,866 $ 2,037 $ 2,134 $ 2,246 $ 2,547 $ 2,678 $ 2,816 Enterprises Project Csh Flows Gross Operting Csh Flow $ 1,886 $ 2,083 $ 2,192 $ 2,304 $ 2,600 $ 2,731 $ 2,870 Other operting ctivities including txes, interest pyments nd working cpitl (246) (454) (542) (554) (750) (781) (820) Net csh provided by operting ctivities $ 1,640 $ 1,629 $ 1,650 $ 1,750 $ 1,850 $ 1,950 $ 2,050 20

22 CMS ENERGY CORPORATION Summry of Consolidted Ernings Reconcilitions of GAAP Net Income to Non-GAAP Adjusted Net Income (In Millions, Except Per Shre Amounts) Third Qurter Nine Months (Unudited) (Unudited) Net Income Avilble to Common Stockholders $ 172 $ 186 $ 463 $ 474 Reconciling Items: Discontinued Opertions (Income) Loss * (*) * * Voluntry Seprtion Progrm Tx Impct - (4) - (4) Restructuring Costs nd Other Tx Impct (*) (1) (1) (1) Adjusted Net Income - Non-GAAP Bsis $ 173 $ 194 $ 465 $ 482 Non-Norml Wether Impcts 10 (48) 82 (9) Tx Impct (4) 18 (32) 3 Adjusted Wether-Normlized Net Income - Non-GAAP Bsis $ 179 $ 164 $ 515 $ 476 Averge Number of Common Shres Outstnding Bsic Diluted Bsic Ernings Per Averge Common Shre Net Income Per Shre s Reported $ 0.61 $ 0.67 $ 1.65 $ 1.71 Reconciling Items: Discontinued Opertions (Income) Loss * (*) * * Voluntry Seprtion Progrm Tx Impct - (0.01) - (0.01) Restructuring Costs nd Other 0.01 * 0.01 * Tx Impct (*) (*) (*) (*) Adjusted Net Income Per Shre - Non-GAAP Bsis $ 0.62 $ 0.70 $ 1.66 $ 1.74 Non-Norml Wether Impcts 0.03 (0.17) 0.29 (0.03) Tx Impct (0.01) 0.07 (0.11) 0.01 Adjusted Wether-Normlized Net Income Per Shre - Non-GAAP Bsis $ 0.64 $ 0.60 $ 1.84 $ 1.72 Diluted Ernings Per Averge Common Shre Net Income Per Shre s Reported $ 0.61 $ 0.67 $ 1.65 $ 1.70 Reconciling Items: Discontinued Opertions (Income) Loss * (*) * * Voluntry Seprtion Progrm Tx Impct - (0.01) - (0.01) Restructuring Costs nd Other 0.01 * 0.01 * Tx Impct (*) (*) (*) (*) Adjusted Net Income Per Shre - Non-GAAP Bsis $ 0.62 $ 0.70 $ 1.66 $ 1.73 Non-Norml Wether Impcts 0.03 (0.17) 0.29 (0.03) Tx Impct (0.01) 0.07 (0.11) 0.01 Adjusted Wether-Normlized Net Income Per Shre - Non-GAAP Bsis $ 0.64 $ 0.60 $ 1.84 $ 1.71 Note: Mngement views djusted (non-generlly Accepted Accounting Principles) ernings s key mesure of the Compny's present operting finncil performnce nd uses djusted ernings for externl communictions with nlysts nd investors. Internlly, the Compny uses djusted ernings to mesure nd ssess performnce. Adjustments could include items such s discontinued opertions, sset sles, impirments, restructuring costs, regultory items from prior yers, or other items detiled in these summry finncil sttements. Adjusted ernings should be considered supplementl informtion to ssist in understnding our business results, rther thn s substitute for reported ernings. Adjusted wether-normlized ernings re provided to show the impct of devitions from norml wether. * Less thn $500 thousnd or $0.01 per shre. 21

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Third Quarter 2018 Results and Outlook October 25, 2018 FOCUSED ON WORLD CLASS PERFORMANCE

Third Quarter 2018 Results and Outlook October 25, 2018 FOCUSED ON WORLD CLASS PERFORMANCE Third Qurter 2018 Results nd Outlook October 25, 2018 FOCUSED ON WORLD CLASS PERFORMANCE This presenttion is mde s of the dte hereof nd contins forwrd-looking sttements s defined in Rule 3b-6 of the Securities