Ha Sustainable Infrastructure Capital, Inc. · NYSE:HASI
Ha Sustainable Infrastructure Capital — Q4 2024 Earnings Presentation
40 slides from Ha Sustainable Infrastructure Capital's earnings presentation, 2025
Slide 1: Earnings Presentation Fourth Quarter and Full Year 2024
Earnings Presentation Fourth Quarter and Full Year 2024
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: 2024 Execution Positions us Well for the Future
2024 Execution Positions us Well for the Future $1.62 / $2.45 $2.3b >10.5% GAAP/Adjusted EPS1 Transactions Closed New Asset Yield3 Capital Access $13.7b 8.3% CCH1, Investment Grade, Managed Assets2 Portfolio Yield4 Revolver Upsize 1. For the year ended 12/31/24. GAAP on a fully diluted basis; see Ap
Slide 4: Strong Confidence and Visibility Enables Guidance Extension
Strong Confidence and Visibility Enables Guidance Extension Guidance Update Prioritizing Capital Retention Extending by one year due to Announcing dividend of $0.42/ high visibility on volumes/yields share to be paid in April 2025 Adjusted EPS CAGR of Payout ratio of 55-60% 8-10% 2024 - 20271 by 202
Slide 5: 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 6: 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 7: 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 8: Resilient Business in this Federal Policy Landscape
Resilient Business in this Federal Policy Landscape Executive Actions IRA Outlook New Policy Priorities • Pause on leases/permits/loans • Initial cuts centered on EVs and • “Unleashing the Golden Era of for wind projects on federal land manufacturing grants American Energy Dominance”2 • 90-day pause
Slide 9: 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 10: 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 11: 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 500 • The latest 5-year load forecast would require ~125 GW of new generation capacity by 2030.2 U.S. Electric Generating Capacity1 400 • Solar and battery storage 300 account for 80% of
Slide 12: Climate | Clients | Assets
Climate | Clients | Assets Supportive long-term macro tailwinds Short-term policy Greater focus on Continuity Adaptability uncertainty new growth paths Improved access to capital 12
Slide 13: Identified Paths to Growth
Identified Paths to Growth March 2023 Investor Day Today Growth Paths Accomplishments Grow with $3.5b investments with 1 our clients >20 existing repeat clients1 1 Grow with our clients Increase 2 new clients 15 new clients1 2 Increase new clients Develop new 3 asset classes $1.2b of FTN origination
Slide 14: 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 15: 2024 Profitability Metrics
2024 Profitability Metrics 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 2022 2023 2024 GAAP NII $58m $24m Recurring Capital L
Slide 16: Insulated Pipeline Supports Near-Term Outlook
Insulated Pipeline Supports Near-Term Outlook BTM: The rising retail cost of power—driven by higher electric utility rates—continues to drive market opportunities, including energy Behind-the-Meter Grid-Connected efficiency projects 48% 25% >$5.5b GC: Primarily solar and solar + storage projects; de
Slide 17: New Investments Have Become Increasingly More Diversified over the Years
New Investments Have Become Increasingly More Diversified over the Years 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: FTN: 38% 30% Public
Slide 18: Managed Assets of $13.7b with CCH1 Ramping
Managed Assets of $13.7b with CCH1 Ramping Managed Assets Up >90% since 20201 CCH1 on track and growing2 • Strategic partnership with KKR established in May 2024 to co-invest $2b in sustainable infrastructure projects $13.7 • $815m of investments committed, $12.3 $600m of which have been funded $9.8
Slide 19: New Portfolio Asset Yields Rose to >10.5% in 2024
New Portfolio Asset Yields Rose to >10.5% in 2024 Diversification across asset classes Yield on new portfolio assets3 GC Solar Resi 21% >10.5% Solar 29% >9.0% Portfolio: $6.6b1 Wind 19% Community Solar 7% C&I 6% FTN 13%2 Public Sector 4% Other 2023 2024 1% At 12/31/24, Portfolio Yield was 8.3%, up f
Slide 20: Effectively Navigating a Higher Interest Rate Environment
Effectively Navigating a Higher Interest Rate Environment 12.5% 11.8% 11.1% 11.2% 11.4% 10.5% 10.7% 8.3% 7.6% 7.6% 7.9% 7.5% 7.5% 6.8% 5.4% 5.6% 4.9% 5.1% 5.0% 4.6% 4.3% 2018 2019 2020 2021 2022 2023 2024 1 2 3 Adjusted ROE Portfolio Yield Interest Expense / Avg Debt Balance Driving higher ROE amids
Slide 21: Ample Liquidity to Invest in Our Pipeline
Ample Liquidity to Invest in Our Pipeline Revolver largely undrawn Debt maturities extend out to 20341 $1,000 Cash Secured CP Credit Facility >$1.5b $500 Liquidity Sources1 $0 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 Unsecured Revolver Credit facilities, TLA Convertible Notes Senior Unsecur
Slide 22: 4Q24 Sustainability and Impact Highlights
4Q24 Sustainability and Impact Highlights >870k metric tons of CO2 emissions Named one of the World’s Best Achieved an ‘A’ Score from CDP estimated to be avoided annually Companies in Sustainable Growth for 3rd Consecutive Year from our 2024 investments in 2025 by TIME Magazine Carbon Emissions1 Car
Slide 23: Highly Resilient and Non-Cyclical Business
Highly Resilient and Non-Cyclical Business Proven history of growing new investments and Political Cycles Managed Assets regardless of the policy regime Strong track record of maintaining margins in Interest Rate Cycles any interest rate environment Consistent Adjusted EPS growth throughout Economic
Slide 24: Appendix
Appendix 24
Slide 25: Portfolio Bridge: Q3 2024 to Q4 2024
Portfolio Bridge: Q3 2024 to Q4 2024 $ millions Portfolio at 9/30/24 $6,296 Funding of new investments $250 Funding of prior investments $160 Principal collections ($132) Syndications and securitizations ($53) Other $73 Portfolio at 12/31/24 $6,594 25
Slide 26: Adjusted Cash Flow from Operations Plus Other Portfolio Collections
Adjusted Cash Flow from Operations Plus Other Portfolio Collections1 $ millions2 2024 2023 2022 Cash collected from our Portfolio $891 $442 $424 Cash collected from sale of assets3 $325 $34 $47 Cash used for compensation and benefits and G&A expenses ($86) ($79) ($64) Interest paid4 ($173) ($138) ($
Slide 27: 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(%)6 Structural Seniority Obligor Credit > 355k consumers WAVG 1 Performing1 ~99% Residential 29% Typically Preferred FICO: “Very Good”
Slide 28: Summary of Total Debt and Hedge Portfolio
Summary of Total Debt and Hedge Portfolio Debt Facility Debt Amount (millions) 1 Interest Rate2 Maturity Year Corporate Senior Unsecured Notes $1,000 3.38% 2026 Corporate Senior Unsecured Notes $750 8.00% 2027 Term Loan A $247 5.76% 2027 Convertible Notes $403 3.75% 2028 Corporate Senior Unsecured N
Slide 29: 2024-27 Guidance Bridge to Long-Term Business Model
2024-27 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%) 2024 – 2027 Guidance 8-10% CAGR3 55-60% payout ratio by 20272 $3.26 $3.03 2023 2024 2025 2026 2027 1. See Appendix for an explanation of Adj
Slide 30: 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 December 31, December 31, 2004 2023 7 2003 Revenue Interest income $ 68,253 $ 62,170 $ 263,792 $ 207,794 Rent
Slide 31: Balance Sheet
Balance Sheet HA SUSTAINABLE INFRASTRUCTURE CAPITAL, INC. CONSOLIDATED BALANCE SHEETS (DOLLARS IN THOUSANDS, EXCEPT PER SHARE DATA) December 31, December 31, "1023, Assets Cash and cash equivalents S 129758 $ 62,632 Egquity method investments 3,612,394 2,966,305 Receivables, net of allowance of $50
Slide 32: 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, es 20320 7 a ‘Cash flows from operating activities Cash flows from financing activites ‘Net income (loss) $2628 § 150757 $1
Slide 33: Adjusted Cash Flow from Operations Plus Other Portfolio Collections
Adjusted Cash Flow from Operations Plus Other Portfolio Collections 33
Slide 34: 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 35: Reconciliation of GAAP-based NII to Adjusted NII
Reconciliation of GAAP-based NII to Adjusted NII 35
Slide 36: Additional GAAP to Non-GAAP Reconciliations
Additional GAAP to Non-GAAP Reconciliations 36
Slide 37: 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 38: 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 39: 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 40: Visit our website at www.hasi.com
Visit our website at www.hasi.com Securities are offered by Hannon Armstrong Securities, LLC, a registered broker dealer, member FINRA and SIPC and subsidiary of Hannon Armstrong Sustainable Infrastructure Capital, Inc.
HA Sustainable Infrastructure Capital — Q4 2024 Earnings Presentation on 6ix