Ha Sustainable Infrastructure Capital, Inc. · NYSE:HASI
Ha Sustainable Infrastructure Capital — Q4 2020 Earnings Presentation
28 slides from Ha Sustainable Infrastructure Capital's earnings presentation, Feb 18, 2021
Slide 1: Earnings Presentation: Fourth Quarter and Full Year 2020
EARNINGS PRESENTATION Fourth Quarter and Full Year 2020
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: Recent Highlights
RECENT HIGHLIGHTS Financial Results1 Key Performance Indicators FY20 FY19 • Delivered GAAP EPS of $1.10 and grew GAAP $1.10 $1.24 Distributable (formerly, Core Pre-CECL) EPS to $1.55 EPS Distributable1 $1.55 $1.40 – an increase of 11% YOY and a 7% 3-yr CAGR (exceeding previous guidance range) GAAP-b
Slide 4: New Guidance
NEW GUIDANCE 1 Distributable Earnings per Share Dividends per Share $2.06 CAGR (2021 - 2023) $2.00 7% - 10% $2.00 $1.98 $1.90 $1.80 $1.80 Actual (2017 - 2020) CAGR: 7% CAGR (2021-2023) $1.60 $1.60 $1.55 3% - 5% $1.57 $1.53 Actual (2017 - 2020) Previous $1.49 Previous Guidance CAGR: 1% $1.40 Guidance
Slide 5: Macro Trends
MACRO TRENDS • 2020 tied for warmest year on record1 1 Climate Change Accelerates • In 2020, there were 416 natural disasters across the globe, resulting in economic losses of >$250b – an 8% increase compared to the century average2 Clean Energy Proves • Despite global pandemic and economic recessio
Slide 6: Pipeline Grows
PIPELINE GROWS Markets Federal EE poised for growth Behind-the-Meter Solar (residential, C&I, community) remains strong with increasing storage attachment GC 33% Growth driven by deep client relationships Pipeline1 Grid-Connected Well-balanced between onshore wind, GC >$3b solar, and solar land BTM
Slide 7: Investment Spotlight: Clearway GC Portfolio
INVESTMENT SPOTLIGHT: CLEARWAY GC PORTFOLIO Investment Overview • $663m preferred equity investment with Clearway Energy, Inc. (CWEN) as equity co-investor Portfolio Technology • $200m initial investment with subsequent fundings as projects achieve commercial (nameplate capacity) operations Storage
Slide 8: Investment Spotlight: ENGIE BTM Portfolio
INVESTMENT SPOTLIGHT: ENGIE BTM PORTFOLIO Investment Overview • $93m preferred equity investment with Morgan Stanley as tax equity and ENGIE as sponsor equity co-investors • $37m funded by EOY20 with subsequent fundings at predetermined completion milestones • 70 MW community and C&I solar + 8 MW co
Slide 9: Growth Driven by Portfolio Growth
GROWTH DRIVEN BY PORTFOLIO GROWTH Disclosed Investments Announced and To Be Funded1 Portfolio3 Funded Fully Funded Announced $3 CAGR: 13% $2.9 (EOY20) (Expectation) ENGIE GC $540m $465m 1H21 $2.0 $2.1 $2.0 $ in billions $2 ENGIE BTM $93m $37m EOY21 $1.6 Clearway GC $663m $200m EOY22 $1 Total $1,296m
Slide 10: Portfolio Grows and Further Diversifies
PORTFOLIO GROWS AND FURTHER DIVERSIFIES Markets EOY20 EOY19 Behind-the-Meter Portfolio Size $2.9b $2.1b Yield 7.6% 7.6% Yield: 8.2% Green Public Solar Sector Land Onshore Wind 28% 17% Real Estate1 GC Resi Solar 24% 30% C&I Solar Portfolio2 Solar Land 17% 22% Grid-Connected Public Sector 14% 15% Yiel
Slide 11: Strong Portfolio with Positive Credit Attributes
STRONG PORTFOLIO WITH POSITIVE CREDIT ATTRIBUTES Recent Portfolio Performance Positive Credit Attributes Performance Portfolio Structural Rating Description Obligor Credit Metric (%) Seniority 1 Performing1 99% Typically IG corporates or Onshore Wind 28% Preferred utilities 2 Slightly below metrics2
Slide 12: Financial Results – 4Q20 and FY20
FINANCIAL RESULTS – 4Q20 AND FY20 Results, Unaudited1 4Q20 4Q19 FY20 FY19 FY20 Commentary ($ in millions, except per share figures) GAAP Earnings $24.9 $46.1 $82.4 $81.6 GAAP Diluted EPS $0.32 $0.66 $1.10 $1.24 Higher interest and gain on sale revenue offset by higher interest expense from additiona
Slide 13: Growth Highlights
GROWTH HIGHLIGHTS Managed Assets1 Distributable NII1 Off Balance Sheet Balance Sheet Portfolio $8 CAGR: 17% $100 CAGR: 16% 15% $7.2 $88 $82 $6.2 $80 $6 $5.3 $68 $ in millions $2.9 $62 $ in billions $4.7 $2.1 $60 $4 $3.9 $2.0 $48 $2.0 $1.6 $40 $2 $20 $0 $0 2016 2017 2018 2019 2020 2016 2017 2018 2019
Slide 14: Balance Sheet Update
BALANCE SHEET UPDATE 12/31/20 Strengthened Long-Term Position Assets ($ in millions)1 • Grew Portfolio 30% QOQ through deployment of $739m Cash $286 to fund new assets Equity method investments 1,280 Government receivables 248 Line Item ($ in millions)1 Commercial receivables 965 Beginning Portfolio
Slide 15: Durable Capital Structure
DURABLE CAPITAL STRUCTURE Demonstrated access to diversified funding Capital Raised ($m) sources and a migration toward corporate $1,800 unsecured debt • Raised >$1.2b in debt and equity in 2020 including: $1,200 • $775m in unsecured green bonds • $144m in convertible green bonds $600 • $298m in equ
Slide 16: ESG Accomplishments
ESG ACCOMPLISHMENTS Environmental Recognition • Recorded highest annual CarbonCount in company history • Invested $1.9b in climate solutions • Issued >$900m in green bonds Most Honored (Small Cap) • Joined Partnership for Carbon Accounting Financials (PCAF) Best CEO, CFO, IR, and Material ESG Disclo
Slide 17: Compelling Value Proposition
COMPELLING VALUE PROPOSITION Programmatic Growth Total Return1 • Robust >$3b pipeline supported by deep relationships with leading clean energy and infrastructure companies Diversified High-Quality Portfolio 1yr 3yr 5yr • >230 investments across ~10 asset classes Durable Capital Structure HASI 105%
Slide 18: Appendix
APPENDIX
Slide 19: Supplemental Financial Data
SUPPLEMENTAL FINANCIAL DATA Explanatory Notes Distributable Earnings and Earnings on Equity Method Investments We are changing the name of our primary Non-GAAP earnings metric from core (Pre-CECL) earnings to Distributable Earnings with no change in the historical method of calculation. We will no l
Slide 20: Supplemental Financial Data
SUPPLEMENTAL FINANCIAL DATA Explanatory Notes Managed Assets As we both consolidate assets on our balance sheet and securitize assets off-balance sheet, certain of our receivables and other assets are not reflected on our balance sheet where we may have a residual interest in the performance of the
Slide 21: Income Statement
INCOME STATEMENT HANNON ARMSTRONG SUSTAINABLE INFRASTRUCTURE CAPITAL, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (@OLLARS IN THOUSANDS, EXCEPT PER SHARE DATA) Revenue Interest income Rental income Gain on sale of receivables and investments Fee income Total revenue Expenses Interest expens
Slide 22: Balance Sheet
BALANCE SHEET 22 HANNON ARMSTRONG SUSTAINABLE INFRASTRUCTURE CAPITAL, INC. CONSOLIDATED BALANCE SHEETS @OLLARS IN THOUSANDS, EXCEPT PER SHARE DATA) December 31, 2020 Assets Cash and cash equivalents $ 286,250 Equity method investments 1,279,651 Government receivables 248,455 Commercial receivables,
Slide 23: Reconciliation of GAAP Net Income to Distributable Earnings
RECONCILIATION OF GAAP NET INCOME TO DISTRIBUTABLE EARNINGS 23
Slide 24: Reconciliation of GAAP Net Income to Distributable Earnings
RECONCILIATION OF GAAP NET INCOME TO DISTRIBUTABLE EARNINGS 24
Slide 25: Reconciliation of GAAP-Based NII to Distributable NII
RECONCILIATION OF GAAP-BASED NII TO DISTRIBUTABLE NII 25
Slide 26: Additional GAAP to Non-GAAP Reconciliations
ADDITIONAL GAAP TO NON-GAAP RECONCILIATIONS 26
Slide 27: Additional GAAP to Non-GAAP Reconciliations
ADDITIONAL GAAP TO NON-GAAP RECONCILIATIONS 27
Slide 28: Visit our website at www.hannonarmstrong.com
Visit our website at www.hannonarmstrong.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 2020 Earnings Presentation on 6ix