Ha Sustainable Infrastructure Capital, Inc. · NYSE:HASI
Ha Sustainable Infrastructure Capital — Investor Presentation (May 2025)
70 slides from Ha Sustainable Infrastructure Capital's investor presentation, May 2025
Slide 1: Investor Presentation May 2025
Investor Presentation May 2025
Slide 2: Forward Looking Statements
Forward Looking Statements Some of the information contained herein are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. When used herein, words such as "believe," "expect," "an
Slide 3: Pioneer Public Investor in Sustainable Infrastructure Assets
Pioneer Public Investor in Sustainable Infrastructure Assets Stock Profile Equity Market Capitalization ($b)1 >$3b We provide investors, stable, predictable earnings growth and Dividend Yield1 ~6% dividend income GAAP EPS / Adjusted EPS (2024) $1.62 / $2.45 Total Shareholder Return since 2013 IPO1 1
Slide 4: Why Invest in HASI
Why Invest in HASI We earn superior risk-adjusted returns by investing in sustainable infrastructure assets Large Multi-Decade Diversified and differentiated exposure to the >$10 trillion investment opportunity 1 Opportunity offered by the energy transition in the U.S. through 20501 Long-Term Invest
Slide 5: Investing in Real Assets Across Three Primary End Markets
Investing in Real Assets Across Three Primary End Markets Behind-the-Meter Grid-Connected Fuels, Transport & Nature “BTM” “GC” “FTN” Energy Efficiency Utility-Scale Solar Power Clean Fuels (RNG) Community and C&I Solar/Storage Wind Power Fleet Decarbonization Residential Solar/Storage Energy Storage
Slide 6: Investment Criteria
Our Investment Strategy is Focused on High-Quality, Cash-Generating Sustainable Infrastructure Assets Our Vision Every investment improves our climate future Our Purpose Make climate positive investments with superior risk-adjusted returns Positive environmental or emissions impact Long-lived infras
Slide 7: Long-Term Programmatic Partnerships
Long-Term Programmatic Partnerships >80 >70% 9 repeat clients1 to date of closed transaction volumes in clients have partnered with HASI (including >15 for 5+ years)2 2024 were with repeat clients1 on 2 or more asset classes2 1. “Repeat clients” defined as clients who have historically closed at lea
Slide 8: Illustrative Investments
Illustrative Investments Grid-Connected Behind-the-Meter Fuels, Transport & Nature Grid-Connected Renewable Energy Residential Solar Renewable Natural Gas Solar Land >1.3 GW >$200 million >$125 million >$100 million Minority common equity investment Investment in a portfolio of residential Senior de
Slide 9: Investment Opportunity in the Energy Transition
Investment Opportunity in the Energy Transition
Slide 10: Energy Transition Infrastructure is Forecast to Require >$10 Trillion of Investment through 2050
Energy Transition Infrastructure is Forecast to Require >$10 Trillion of Investment through 2050 Components of 2050 Growth in Average Annual Energy Transition Forecast for $10.8T Energy Investment in the U.S. Energy Investments are not Limited Transition Investment 1 Transition by 20502 to Electrici
Slide 11: A New Era of Growth for the U.S. Power Market
A New Era of Growth for the U.S. Power Market 1960-20001 2000-20231 2024-2040E2 +4.1%/yr +0.4%/yr +3.4%/yr Increased data center load , 8,000 EV penetration, electrification U.S. Electricity Generation (TWh) of buildings, etc. 6,000 4,000 Increased use of air conditioning, refrigeration, electric he
Slide 12: Solar and Wind Offer the Lowest Cost and Fastest-to-Market Solutions
Solar and Wind Offer the Lowest Cost and Fastest-to- Market Solutions Unsubsidized solar and wind provide Solar, wind and battery storage are the only sources the lowest levelized cost of electricity today1 of new electric capacity that can be built in <2 years2 $250 $110-228 $142-222 10+ Yrs Leveli
Slide 13: Power Prices Already Rising with Demand Outpacing Supply
Power Prices Already Rising with Demand Outpacing Supply Wholesale forward power prices have doubled over the last five years in ERCOT and PJM1 “The significantly higher prices in [PJM’s 2025-2026 capacity] auction confirm our concerns that the supply/demand balance is tightening across the RTO. $60
Slide 14: The Growing Financial Cost of Higher Emissions
The Growing Financial Cost of Higher Emissions Instances of climate-related disasters1 The cost of U.S. billion-dollar has risen along with global temperatures2 climate-related disasters since 19801 30 1.4 $400 # of U.S. Billion-Dollar Environmental 1.2 $3,000 Temperature Anomaly (C) 25 Cumulative C
Slide 15: Growth in U.S. Power Demand is Not Reliant Upon the IRA
Growth in U.S. Power Demand is Not Reliant Upon the IRA By 20352 8.3 8.3 +~400 TWh U.S. Electricity Consumption Data Centers 1,000s of TWh1 5.4 4.7 4.5 4.9 +>300 TWh 4.1 4.1 Electric Vehicles +>200 TWh Building Electrification +180 TWh 2021 2030 2035 2050 Industrial Electrification / Onshoring w/IRA
Slide 16: Renewables Poised to Play a Prominent Role in the All-of-the-Above Strategy
Renewables Poised to Play a Prominent Role in the “All-of- the-Above” Strategy Needed to Supply U.S. Power Demand • Solar and battery storage 500 account for 80% of the interconnection queue.2 U.S. Electric Generating Capacity1 400 • New gas-fired generating capacity is not expected to be available
Slide 17: Clean Energy Investment has Continued to Grow Regardless of the Political Party in Power
Clean Energy Investment has Continued to Grow Regardless of the Political Party in Power U.S. Energy Transition Investment by Presidential Term1 $712 $ billions (inflation- adjusted) $450 $330 $246 $173 2005- 2008 2009- 2012 2013- 2016 2017- 2020 2021- 2024 Republican Democrat Democrat Republican De
Slide 18: HASI is Optimally Positioned as a Key Capital Provider in this New Era of U.S. Load Growth
HASI is Optimally Positioned as a Key Capital Provider in this New Era of U.S. Load Growth Pure play investor in clean energy infrastructure assets with a proven capability to invest >$2 billion per year of capital Long-standing programmatic relationships with leading developers of clean energy proj
Slide 19: Grid-Connected (GC): >$800b Investment Opportunity Over the Next Decade
Grid-Connected (GC): >$800b Investment Opportunity Over the Next Decade Strategic partnerships with 1,200 leading developers of U.S. utility- Cumulative Installed U.S. Capacity 1,000 scale renewable projects including ENGIE, AES Clean Energy, Lightsource BP, and Invenergy Gigawatts (GW) 800 600 Our
Slide 20: Behind-the-Meter (BTM): >$400b Investment Opportunity
Behind-the-Meter (BTM): >$400b Investment Opportunity from Distributed Solar & Energy Efficiency through 2035 Energy efficiency investments can reduce U.S. commercial U.S. community, C&I and residential buildings' energy usage of ~2,000 TWh2 and costs of ~$190b3 solar market is forecast to add >200
Slide 21: Fuel, Transport & Nature (FTN): Our Next Frontier of Investment Opportunities
Fuel, Transport & Nature (FTN): Our Next Frontier of Investment Opportunities Beyond the Power Sector Fuels Transport Nature Clean fuels—renewable natural gas Transportation accounts for almost 30% Climate change is also driving greater Landscape (“RNG”), biofuels, etc.—decarbonize of U.S. GHG emiss
Slide 22: The Continuing Evolution of Our Investment Strategy
The Continuing Evolution of Our Investment Strategy The Next Frontier Building Electrification CHP Data Centers Fuel Cell Next-Gen Geothermal Hydrogen Hydropower Manufacturing Natural Gas w/CCUS Advanced Nuclear Other Clean Fuels Resiliency & Adaptation Sustainable Agriculture Sustainable Aviation F
Slide 23: Insulated Pipeline is Diversified Across our Three Primary Target Markets
Insulated Pipeline is Diversified Across our Three Primary Target Markets BTM: The rising retail cost of power—driven by higher electric utility rates—continues to drive opportunities for distributed solar and energy efficiency projects Behind-the-Meter Grid-Connected 49% 30% GC: EIA continues to fo
Slide 24: Outlook Undeterred by Tariff Dislocations
Outlook Undeterred by Tariff Dislocations Portfolio Pipeline Post-Pipeline De minimis impact Largely protected Manageable exposure • Projects in operation and/ • Most projects already • Underlying growth in U.S. or parts already procured completed or are under power demand/power prices construction
Slide 25: Investments, Assets, Returns & Funding
Investments, Assets, Returns & Funding
Slide 26: Annual Investment Originations Have Grown >75% since 2019 While Becoming More Diversified
Annual Investment Originations Have Grown >75% since 2019 While Becoming More Diversified Top two asset classes of new investments change each year $2.3b $2.3b Community $1.9b Solar: $1.8b 18% $1.7b Resi $1.3b Solar: 26% Public Public Sector: Sector: FTN: Resi Solar: Onshore 42% 27% 21% 21% Wind: FT
Slide 27: Our Managed Assets Have Grown by >90% Since 2020 to $14.5 Billion
Our Managed Assets Have Grown by >90% Since 2020 to $14.5 Billion at the end of Q1 2025 $13.7 $14.5 $12.3 $9.8 $8.8 $7.2 $6.6 $7.1 $6.2 $3.6 $4.3 $2.9 2020 2021 2022 2023 2024 Q1 2025 Managed Assets1 Portfolio1 “Managed Assets” represents our Portfolio of on-balance sheet investments, as well as our
Slide 28: New Portfolio Asset Yields Have Risen to >10.5%
New Portfolio Asset Yields Have Risen to >10.5% Diversification across asset classes Yield on new investments3 GC Solar >10.5% >10.5% Resi 20% Solar 30% >9.0% >7.5% Portfolio: $7.1b1 Onshore Wind 18% Community Solar 8% C&I FTN 6% 13%2 Public Sector 4% Other 2022 2023 2024 Q1 2025 1% Our portfolio re
Slide 29: Portfolio Growth Enabled by Diverse and Expanding Funding Platform
Portfolio Growth Enabled by Diverse and Expanding Funding Platform Co-Investment Vehicles2 $10 Funding of New Balance Sheet Investments1 Convertible Debt $8 Unsecured Notes $6 Green CP2 ($b) Term Loan Facilities Revolving Credit2 $4 Non-Recourse Debt $2 Equity $0 2013 2014 2015 2016 2017 2018 2019 2
Slide 30: Ample Liquidity and Manageable Debt Maturities
Ample Liquidity and Manageable Debt Maturities Revolver largely undrawn Long-term Debt maturities extend out to 20343 $1,000 Cash CP Gross Liquidity $1.7b $500 >$1.3b - RLOC capacity reserved $0.4 liquidity for stand-alone CP facility2 sources1 Available Liquidity $1.3b $0 2025 2026 2027 2028 2029 2
Slide 31: CCH1 Co-Investment Vehicle Program Adds a New Dimension to Our Business
CCH1 Co-Investment Vehicle Program Adds a New Dimension to Our Business 50% 50% of investment of investment • Access to new pool of private capital • Lower reliance on capital markets Upfront Annual Origination Management Fees Fees • No change in origination (1%) (0.5-1.0%) strategy, investment crit
Slide 32: Effectively Navigating a Higher Interest Rate Environment
Effectively Navigating a Higher Interest Rate Environment 12.8% 12.5% 11.8% 11.1% 11.2% 11.4% 10.5% 10.7% 8.3% 8.3% 7.6% 7.6% 7.9% 7.5% 7.5% 6.8% 5.4% 5.6% 5.7% 4.9% 5.1% 5.0% 4.6% 4.3% 2018 2019 2020 2021 2022 2023 2024 Q1 2025 1 2 3 Adjusted ROE Portfolio Yield Interest Expense / Avg Debt Balance
Slide 33: Investment Grade Status Lowers Debt Costs by ~100 Bps
Investment Grade Status Lowers Debt Costs by ~100 Bps BB minus BBB Spreads: ~120 bps average since 20141 Lower 400 debt costs 300 200 Longer 100 maturities Jul 14 Jul 15 Jul 16 Jul 17 Jul 18 Jul 19 Jul 20 Jul 21 Jul 22 Jul 23 Jul 24 Fewer market HASI’s Spreads Non-IG: 339 bps First IG: 225 bps dislo
Slide 34: Resilient Margins in all Interest Rate Environments
Resilient Margins in all Interest Rate Environments 2020 2021 2022 2023 2024 3.9% 2.8% 3.3% 2.7% 3.7% 10.5% 9.1% 7.5% 7.1% 7.6% 6.3% 6.6% 4.2% 4.9% 3.4% New Asset Yields1 New Debt Issued2 Net Spread Adjusted EPS Y/Y Growth Adjusted EPS 11% 21% 11% 7% 10% Y/Y Growth 5% 10-Year Treasury Yield 4% 3% 2%
Slide 35: Our Business Has Not Historically Been Impacted by Economic Cyclicality
Our Business Has Not Historically Been Impacted by Economic Cyclicality New U.S. generation capacity vs. GDP growth HASI Adjusted EPS vs. GDP growth 2001-02 2007-09 2020 “Tech” Recession “GFC” Recession “Covid” Recession $3.00 6% New U.S. Electric Generation Capacity (GW)1 80 6% U.S. Real GDP Growth
Slide 36: Differentiated Investment Platform
Differentiated Investment Platform
Slide 37: Deep and Dedicated Team with Extensive Energy Finance Expertise and Experience
Deep and Dedicated Team with Extensive Energy Finance Expertise and Experience Jeffrey A. Lipson Charles W. Melko Marc T. Pangburn Susan D. Nickey President & Chief EVP, Chief Financial EVP, Chief Revenue EVP & Key Executives Executive Officer Officer and Treasurer & Strategy Officer Chief Client Of
Slide 38: Long-Term Thinking Underpins Long-Term Investments
Long-Term Thinking Underpins Long-Term Investments Preferred Choice by Focused, Disciplined, Programmatic Clients & Efficient Origination Versatility across the Capital Robust, Active Structure and Transaction Sizes Risk Management 38
Slide 39: The Preferred Choice for our Programmatic Clients
The Preferred Choice for our Programmatic Clients Trust Flexibility Efficiency Expertise Creativity in finding Programmatic Decades of market, Strategic value-add solutions to clients’ relationships minimize policy, technology, partner, not just a problems friction costs tax, and finance financial i
Slide 40: Versatility across the Capital Structure and Transaction Sizes
Versatility across the Capital Structure and Transaction Sizes Common Equity Capital Structure Positioning Infrastructure Funds Structured Equity Private Credit Subordinated Debt Senior Debt Banks / Insurance Transaction size $10M $100M $500M $1B+ Preferred Choice Versatility across the Capital Focu
Slide 41: Focused, Disciplined, and Efficient Origination
Focused, Disciplined, and Efficient Origination Sourcing Structuring Underwriting Thorough diligence spanning Well-known participant in the Flexibility within the capital multiple teams, independent market as a “one stop shop” structure enabled by use of engineers, advisors and across multiple asset
Slide 42: Robust and Active Risk Management
Robust and Active Risk Management Focus on non-cyclical assets with long-term cash flows under contract with Credit Risk high-quality, incentivized off-takers Substantial investment in information systems provides for efficient data Operational Risk analysis on key portfolio asset performance metric
Slide 43: Our Clients Embrace our Expertise, Flexibility, Shared Values and Long-Term Relationships
Our Clients Embrace our Expertise, Flexibility, Shared Values and Long-Term Relationships “What sets HASI apart is that they have a “We find a common ground, a common trust. team of professionals that get in there. When And that has allowed us to be much more the times are challenging they bring the
Slide 44: Financial Performance & Targets
Financial Performance & Targets
Slide 45: New Investments Lead to Multiple Revenue/Income Streams
New Investments Lead to Multiple Revenue/Income Streams Transaction Closed Managed Asset Not Securitized Securitized Portfolio Co-Investment Vehicles Receivables Equity Method Investments (Debt) (Equity) Interest Income and Equity Method Securitization Asset Income Gain on Sale of Rental Income Reve
Slide 46: Adjusted Net Investment Income has Grown at a CAGR of >30% since 2020
Adjusted Net Investment Income has Grown at a CAGR of >30% since 2020 to $264m in 2024 Adjusted Net Investment Income represents core recurring income from our portfolio $3.0 $3.6 $264 Portfolio $b $217 Loans (“Receivables”) Equity Investments $180 & Other Investments1 (“EMI”) $134 Representative As
Slide 47: Gain on Sale Revenue is Generated Predominantly from the Securitization of Assets
Gain on Sale Revenue is Generated Predominantly from the Securitization of Assets not Retained on Balance Sheet $1,152m $878m Securitized assets primarily include our energy efficiency and real $ in millions $628m estate investments $557m $342m These assets generally offer lower credit risk but also
Slide 48: Steady, Consistent Growth in Adjusted Net Investment Income and Adjusted EPS
Steady, Consistent Growth in Adjusted Net Investment Income and Adjusted EPS Adjusted Net Adjusted Investment Income1 EPS1 2023 2024 CAGR: 32% CAGR: 12% $264 $2.45 $217 $2.08 $2.23 GAAP Diluted EPS $1.42 $1.62 $180 $1.88 $1.55 $134 $88 Adjusted EPS1 $2.23 $2.45 2020 2021 2022 2023 2024 2020 2021 202
Slide 49: Adjusted Cash Flow from Operations Plus Other Portfolio Collections
Adjusted Cash Flow from Operations Plus Other Portfolio Collections1 $ millions2 1Q25 (TTM) 2024 2023 Cash collected from our Portfolio $794 $891 $442 Cash collected from sale of assets3 $200 $325 $34 Cash used for compensation and benefits and G&A expenses ($91) ($86) ($79) Interest paid4 ($201) ($
Slide 50: 2027 Guidance Bridge to Long-Term Business Model
2027 Guidance Bridge to Long-Term Business Model Adjusted EPS1 Dividend Long-Term Business Model 10% CAGR 50% payout ratio2 (Realized 2014-2024 CAGR of 10%) 2027 Guidance 8-10% CAGR3 55-60% payout ratio2 $3.26 $3.03 2023 2024 2025 2026 2027 1. See Appendix for an explanation of Adjusted Earnings, in
Slide 51: Sustainability & Impact Leadership
Sustainability & Impact Leadership
Slide 52: Stellar Sustainability Results and Recognition
Stellar Sustainability Results and Recognition Key Sustainability Metrics for 20241 100% ~400k >35 hrs. of energy consumption procured Quality jobs created by our average training from renewable energy sources investments across the U.S. per employee 96% 41% ~$4m retention of our racial/ethnic minor
Slide 53: A Long Legacy of Sustainability Excellence
A Long Legacy of Sustainability Excellence 2013 2014 2015 2016 2017 First U.S. public company solely- Published first Issued first rated HASI Recognized by Climate One of the first U.S. public focused on climate investments Sustainability Sustainable Yield Bond Bonds Initiative as a companies to com
Slide 54: CarbonCount: Our Proprietary Tool for Measuring the Climate Impact of Every Investment
CarbonCount: Our Proprietary Tool for Measuring the Climate Impact of Every Investment Annual Energy Generation Locational Marginal Emissions Factor Avoided by Project (MWh) × (Metric Tons of CO2e / MWh)1 Metric Tons of CO2e Avoided = Annually per $1,000 Invested Total Capital Cost of the Project Tr
Slide 55: Avoidance of Material Carbon Emissions through Both our Investments and Operations
Avoidance of Material Carbon Emissions through Both our Investments and Operations 0 MT 856k 0 MT 382m 0.2k MT 2024 Highlights1 direct scope 1 MT of incremental annual indirect scope 2 gallons of indirect scope 3 CO2 emissions2 reductions in CO2 emissions CO2 emissions2 water saved from CO2 emission
Slide 56: Appendix
Appendix
Slide 57: Low P/E Multiple Relative to History and Peer Groups
Low P/E Multiple Relative to History and Peer Groups HASI’s 2000-2024 P/E Multiple Current 2025 P/E vs. Peer Groups 40x 20x 20x 20 19x 35x 16x 30x 15 14x 5-Year Avg: P/E Multiple 25x 17x 11x 20x 10 15x 10x 5 5x 0 0x Jan-20 Jan-21 Jan-22 Jan-23 Jan-24 Asset Clean Energy Clean Power Midcap Midcap Mana
Slide 58: Summary of Total Debt and Hedge Portfolio
Summary of Total Debt and Hedge Portfolio Debt Facility Debt Amount (millions) 1 Interest Rate2 Maturity Year Convertible Notes (paid off in April 2025) $200 3.25% 2025 Corporate Senior Unsecured Notes $1,000 3.38% 2026 Corporate Senior Unsecured Notes $750 8.00% 2027 Term Loan A $244 5.76% 2027 Com
Slide 59: Strong Portfolio with Positive Credit Attributes
Strong Portfolio with Positive Credit Attributes Recent Portfolio Performance Positive Credit Attributes Rating Description Performance Metric Asset Class Portfolio(%)5 Structural Seniority Obligor Credit Subordinated Debt > 380k consumers WAVG 1 Performing1 ~99% Residential 30% or Structured Equity
Slide 60: Financial Statements
Financial Statements iT eed iI —_—————
Slide 61: Income Statement
Income Statement HA SUSTAINABLE INFRASTRUCTURE CAPITAL, INC. CONSOLIDATED STATEMENTS OF OPERATIONS (DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA) For the Three Months _For the Year Ended Ended March 31, December 31, 202s 2028 24 2003 Revenue Interest income $ 66,394 $ 68,692 263,792 $207,794 Rental i
Slide 62: Balance Sheet
Balance Sheet HA SUSTAINABLE INFRASTRUCTURE CAPITAL, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA) December 31, 2024 s 129,758 3,612,394 2,895,837 75,556 2,984 6818 248,688 108,210 S$ 7,080,245 (UNAUDITED) March 31, 2025 (unaudited) Assets Cash and cash equ
Slide 63: Statement of Cashflows
Statement of Cashflows HA SUSTAINABLE INFRASTRUCTURE CAPITAL, INC ‘CONSOLIDATED STATEMENTS OF CASH FLOWS (DOLLARS IN THOUSANDS) Years Ended December 3 ‘Years Ended December 31, Tas 203 ton Ting tet ‘Cash flows from operating activities (Cash flows from financing activites Net income (ess) $ 20308 §
Slide 64: Cash Available for Reinvestment
Cash Available for Reinvestment 64
Slide 65: Reconciliation of GAAP Net Income to Adjusted Earnings
Reconciliation of GAAP Net Income to Adjusted Earnings (1) The per share data reflects the GAAP diluted earnings per share and is the most comparable GAAP measure to our adjusted earnings per share. (2) This is a non-GAAP adjustment to reflect the return on capital of our equity method investments a
Slide 66: Additional GAAP to Non-GAAP Reconciliations
Additional GAAP to Non-GAAP Reconciliations Reconciliation of GAAP-based NII to Adjusted NII (1) Reflects adjustment for equity method investments described above (2) Adds back losses related to debt payments included in interest expense in our income statement (3) Adds back non-cash amortization re
Slide 67: Explanatory Notes
Explanatory Notes Adjusted Cash Flow from Operations plus Other Portfolio Collections We operate our business in a manner that considers total cash collected from our portfolio and making necessary operating and debt service payments to assess the amount of cash we have available to fund dividends a
Slide 68: Supplemental Financial Data
Supplemental Financial Data Adjusted Earnings and Earnings on Equity Method Investments We calculate Adjusted earnings as GAAP net income (loss) excluding non-cash equity compensation expense, provisions for loss on receivables, amortization of intangibles, non-cash provision (benefit) for taxes, ga
Slide 69: Supplemental Financial Data
Supplemental Financial Data Managed Assets As we consolidate assets on our balance sheet, securitize assets off-balance sheet, and manage assets in which we co-invest with other parties, certain receivables and other assets are not reflected on our balance sheet where we may have a residual interest
Slide 70: Visit our website at www.hasi.com
Visit our website at www.hasi.com Listen to the HASI Climate Positive podcast Offered by HASI Securities, and a subsidiary of HA Sustainable Infrastructure Capital, Inc.
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