EXHIBIT 99.3
[CMS ENERGY LOGO]
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This presentation contains forward-looking statements within the meaning of the
safe-harbor provisions of the federal securities laws. Our actual results may
differ materially from those anticipated in such statements as a result of
various factors discussed in our SEC filings.
1
[CMS ENERGY LOGO]
2002 Second Quarter
Earnings Per Share Reconciliation
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2002 2001
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EPS Reported $ (0.56) $ 0.40
Reconciling Items:
Asset Sales Gains (Losses) $ 0.16 $ (0.01)
Discontinued Operations Income (Loss) (1.05) 0.14
Restructuring Costs (0.06) --
Extraordinary Item (0.05) --
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(1.00) 0.13
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EPS Operating $ 0.44 $ 0.27
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2
[CMS ENERGY LOGO]
Year to Date - June 2002
Earnings Per Share Reconciliation
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2002 2001
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EPS Reported $ 2.30 $ 1.25
Reconciling Items:
Asset Sales Gains (Losses) $ 0.26 $ (0.01)
Discontinued Operations Income (Loss) 1.22 0.14
Restructuring Costs (0.05) --
Extraordinary Item (0.05) --
Goodwill Accounting Change - Viron (0.07) --
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1.31 0.13
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EPS Operating $ 0.99 $ 1.12
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3
[CMS ENERGY LOGO]
Electric Utility
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Operating Net Income
[BAR GRAPH]
2002 2001
(in Millions)
$54 $29
PTOI $116 $82
- - Variance $25 million
- Overall deliveries up 133 Gwh's - $5 MM
- Lower Supply costs - $22 MM
- Other including higher Other Operating
Expenses ($2) MM
4
[CMS ENERGY LOGO]
Gas Utility
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Operating Net Income
[BAR GRAPH]
2002 2001
(in Millions)
$4 $0
PTOI $20 $16
- Variance $4 million
- Deliveries up 8.3 Bcf - $5 MM
- Interim rate increase - $1 MM
- Higher other operating expenses &
other - ($2) MM
5
[CMS ENERGY LOGO]
CMS Panhandle Companies
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[BAR GRAPH]
Operating Net Income
2002 2001
(in Millions)
$12 $10
PTOI $35 $37
- Variance - $2 million
- Lower LNG operations - ($5) MM
- Absence of goodwill amortization - $2 MM
- Lower operating expenses - $3 MM
- Lower fixed charges and other - $2 MM
6
[CMS ENERGY LOGO]
Natural Gas Transmission
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[BAR GRAPH]
Operating Net Income
2002 2001
(in Millions)
$1 $4
PTOI $3 $7
- Variance ($3) million
- Other pipeline operations/lower costs - $4 MM
- Argentine expropriation & devaluation impacts ($5) MM
- Field services and gas processing operations - ($2) MM
2002 Operating net income excludes a ($2) MM adjustment to the previously
reported gain on sale of the Methanol Investment
7
[CMS ENERGY LOGO]
Marketing, Services & Trading
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[BAR GRAPH]
Operating Net Income
2002 2001
(in Millions)
($18) $33
PTOI $(27) $51
- Variance ($51) MM
- Lower electric net margins - ($24) MM
- Lower gas net margins - ($22) MM
- Intercompany MTM losses - ($21) MM
- Lower operating expenses & other - $16 MM
8
[CMS ENERGY LOGO]
Independent Power Production
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[BAR GRAPH]
Operating Net Income
2002 2001
(in Millions)
$48 $18
PTOI $73 $28
- Variance $30 million
- MCV - MTM of long term supply costs & other - $23 MM
- DIG - lower steam costs - $8 MM
- Other plant operations / lower costs $7 MM
- Argentine expropriation & devaluation impacts ($8) MM
9
[CMS ENERGY LOGO]
Parent Interest Expense & Other
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[BAR GRAPH]
Operating Net Income (Loss)
2002 2001
(in Millions)
($42) ($59)
PTOI $22 $4
- Variance $17 million
- Inter company MTM gains - $21 MM
- Lower Parent Interest Expense $6 MM
- Other Investments ($10) MM
10
[CMS ENERGY LOGO]
Asset Sales and Other Cash Proceeds
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Date $ Millions
EDEERSA Electric
2001 Done
Distribution and other $133
Done LNG monetization 310
Done Securitization proceeds 469
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Sub-Total - 2001 912
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Equatorial Guinea Oil & Gas
2002 Done reserves and Atlantic Methanol 1,002
operations
Done Consumers' Electric Transmission 288
Done Powder River reserves and other 131
Q3 Oil & Gas Company 232
Completed & announced 2,565
Q3-Q4 Generation, distribution & other 75 - 275
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Total 2001 & 2002 Asset Sales and Other Cash Proceeds $2,640 - $2,840
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11
[CMS ENERGY LOGO]
CMS Energy Parent -
Sources and Uses of Cash Last Half 2002
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Sources
Cash on Hand @ June 30 $ 70
July bank borrowings 186
Asset sales announced 232
Dividends
- Consumers Energy 105
- Enterprises 115
Other 42
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Subtotal- Sources $680
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Uses
Debt paydown $286
Capital investments 160
Parent interest 130
Common & preferred
Dividends 75
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Subtotal- Uses 651
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Cash on hand @
December 31 $ 99
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12
[CMS ENERGY LOGO]
Capital Structure
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12-31-01
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$11.1 billion
[3D PIE CHART]
Common Equity Preferred Stock Debt**
18% 11% 71%
6-30-02
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$9.9 billion
[3D PIE CHART]
Common Equity Preferred Stock Debt**
19% 12% 69%
12-31-02 E
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$10.2
[3D PIE CHART]
Common Equity Preferred Stock Debt**
22% 12% 66%
**Excludes securitization debt of $469 MM
13
[CMS ENERGY LOGO]
2002 Net Income Guidance
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(In Millions, except EPS)
2002 Current 2002 Prior
Description Guidance Guidance Change
----------- -------- -------- ------
Electric Utility $ 200 $ 200 $ 0
Gas Utility 45 45 0
Natural Gas Transmission 70 70 0
MS&T 0 15 (15)
IPP 105 105 0
Oil & Gas (5) (5) 0
Energy parent interest expense & other (200) (215) 15
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Operating Net Income $ 215 $ 215 $ 0
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14
[CMS ENERGY LOGO]
2002 Other Issues
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- PEPL Goodwill Impairment
- Rating Triggers
- Officer Certificates
15
[CMS ENERGY LOGO]
2002 Other Issues (contd)
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- Investigations
- Ernst & Young Audit
- Potential Pipeline Sale
16