Hannon Armstrong Sustainable Infrastructure Capital, Inc. (NYSE:HASI) Q2 2022 Earnings Conference Call August 4, 2022 5:00 PM ET Company Participants Neha Gaddam - Investor Relations Jeff Eckel - Chairman and Chief Executive Officer Jeff Lipson - Chief Financial Offer and Chief Operating Officer Conference Call Participants Noah Kaye - Oppenheimer Chris Souther - B. Riley Mark Strouse - JPMorgan Stephen Byrd - Morgan Stanley Jeff Osborne - Cowen and Company Julien Dumoulin-Smith - Bank of America Operator G ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 001-35877 HANNON ARMSTRONG SUSTAINABLE INFRASTRUCTURE CAPITAL, INC. (Exact name of registrant as specified in its charter) Maryland 46-1347456 (S ...

Financial Data and Key Metrics Changes - The company reported distributable earnings of $0.52 per share, a 21% increase year-over-year [8] - Net investment income grew by 41% year-over-year, reaching over $42 million [20] - The gain on sale revenue was approximately $22 million, representing an 8% increase year-over-year [21] Business Line Data and Key Metrics Changes - The portfolio balance grew to $3.7 billion, a 28% increase from $2.9 billion year-over-year [23] - The weighted average life of the portfolio is 18 years, with no asset class comprising more than 30% of the portfolio [23] - The forward-looking portfolio yield at quarter end was 7.3%, down from 7.5% at year-end [24] Market Data and Key Metrics Changes - The clean energy industry is adapting to inflation by raising Power Purchase Agreement (PPA) prices [11] - Higher commodity prices and retail rates are benefiting the portfolio, particularly for behind-the-meter generation [13] - The anti-circumvention investigation by the Department of Commerce is disrupting the solar supply chain, primarily affecting grid-connected solar projects [14] Company Strategy and Development Direction - The company reaffirms guidance for annual growth in distributable EPS of 10% to 13% through 2024 [9] - The focus remains on a diverse set of clients, technologies, and assets to mitigate macroeconomic challenges [9] - The company is looking favorably on common equity investments due to elevated natural gas prices [13] Management's Comments on Operating Environment and Future Outlook - Management acknowledges that inflation has minimal impact on the portfolio due to fixed-price O&M contracts [12] - The war in Ukraine highlights the importance of energy security, reinforcing the investment strategy in clean energy [17] - Management expects a manageable softness in the solar pipeline in the next six to nine months due to supply chain disruptions [15] Other Important Information - The company successfully offered $200 million of carbon count exchangeable notes with a 0% coupon [26] - Total available sources of liquidity increased to over $930 million, with no material debt maturities until 2025 [27] - The company continues to manage interest rate risk effectively, with 96% of debt being fixed rate [28] Q&A Session Summary Question: Yield decline and PPA rates - The yield decline was due to congestion in the Southwest Power Pool affecting IRRs on certain investments, not new assets [42] Question: Common equity investments - The company is considering common equity investments due to favorable gas prices but will only take risks where returns justify it [43][45] Question: Transactions and pipeline movements - There were no significant shifts in the pipeline, and the held-for-sale assets indicate timing for securitization rather than a trend [53] Question: Electricity prices and PPAs - Higher electricity prices are leading to increased interest in energy efficiency and modifications in contracts [60] Question: Competition and funding needs - Competition remains stable, with new entrants focusing on sponsor-level investments rather than asset-level [82] - The company plans to utilize diverse funding sources, including term debt and securitization, to support its pipeline [83]

| --- | --- | --- | --- | --- | --- | |------------------------------------------|-------|-------|-------|-----------------------------|-------| | | | | | | | | | | | | | | | HANNON ARMSTRONG | | | | INVESTING CLIMATE · LUTIONS | | | EARNINGS PRESENTATION First Quarter 2022 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | FORWARD LOOKING STATEMENTS Other important factors that we think could cause our actual results to differ materially from expected results are summarized b ...

Financial Strategy - The company plans to raise additional equity capital and utilize fixed and floating rate borrowings, including short-term commercial paper and public/private debt issuances[48]. - The company aims to maintain a financial leverage ratio of debt to equity at or below 2.5 to 1, with a target range for fixed rate debt to total debt between 75% and 100%[49]. - The company utilizes securitization trusts to transfer transaction economics to institutional investors, maintaining high availability of securitization counterparties[50]. - The company has issued CarbonCount Green Commercial Paper Notes, achieving better borrowing rates through favorable CarbonCount scores[77]. - The company faces increased competition due to low yields in alternative investments and growing acceptance of climate solutions[82]. Sustainability Commitment - The company is committed to achieving net-zero carbon emissions by 2050, with established targets under the Science Based Targets Initiative[66]. - The company emphasizes employee engagement in sustainability, with regular meetings led by the CEO to reinforce its mission and gather feedback[54]. - The company quantifies the environmental impact of transactions using CarbonCount, with metrics available in the financial results section[76]. - The company continues to implement TCFD recommendations and expects to fully align with PCAF reporting by 2023[77]. - The company is a signatory to the United Nations Global Compact, focusing on responsible business practices related to human rights, labor, and the environment[67]. - The company is committed to transparent ESG reporting, which it believes enhances understanding of financial results[76]. Governance and Ethics - The company has adopted a Code of Business Conduct and Ethics policy to ensure high standards of ethics and conduct in all business relationships[72]. - The company has a governance structure that allows stockholders to amend bylaws with a majority vote[78]. - The company has exempted certain transactions from business combinations statute, requiring board approval[78]. - The company has no stockholder rights plan in place, indicating a straightforward governance approach[78]. Workforce and Leadership - As of December 31, 2021, the company employed 99 people and intends to hire additional business professionals to assist in implementing its business strategy[62]. - The company provides competitive benefits, including covering substantially all healthcare costs for employees, and supports community and charitable activities[58]. - The company has a diverse board, with 33% of directors being women and 11% being persons of color, in line with its board diversity policy[71]. - Jeffrey A. Lipson has served as COO since 2021 and CFO since 2019, bringing extensive experience from Congressional Bancshares and Bank of America[84]. - Susan D. Nickey has been the Chief Client Officer since January 2021, focusing on business development and client relationships[85]. - Nathaniel J. Rose has been a co-CIO since 2021, involved in the majority of the company's transactions since 2000[87]. - Daniel K. McMahon has played a role in analyzing and managing several billion dollars of transactions since joining the company in 2000[88]. - Richard R. Santoroski, co-head of portfolio management since October 2021, integrates analytics across investment and risk-related decisions[90]. - Katherine McGregor Dent has been the Chief Human Resources Officer since April 2020, focusing on culture and organizational development[91]. - Charles W. Melko has served as Chief Accounting Officer since 2017, responsible for accounting and financial reporting functions[92].

| --- | --- | --- | --- | --- | --- | |-----------------------------------|-------|-------|-------|-------|-------| | | | | | | | | | | | | | | | | | | | | | | EARNINGS PRESENTATION | | | | | | | Fourth Quarter and Full Year 2021 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | FORWARD LOOKING STATEMENTS Other important factors that we think could cause our actual results to differ materially from expected results are summarized below, including the ongoing impact of the current outbreak ...

Financial Data and Key Metrics Changes - Distributable earnings increased by 21% to $1.88 per share, with net investment income rising by 52% to $134 million, and the portfolio growing by 24% to $33.6 billion [5][16][17] - The reported pipeline increased to over $4 billion, up $1 billion from the last report, following $1.7 billion in closings during 2021 [5][12] Business Line Data and Key Metrics Changes - The balance sheet portfolio grew by 24% from $2.9 billion at year-end 2020 to $3.6 billion at the end of 2021, with a steady portfolio yield of 7.5% [17][18] - Gain-on-sale income from securitized assets was $80 million in 2021, reflecting a 21% annual increase [16] Market Data and Key Metrics Changes - The clean energy industry is adapting to rising interest rates and higher costs, with reports indicating a 5% increase in Power Purchase Agreement (PPA) prices in Q4 [9] - Supply chain delays have pushed transactions in the pipeline out by only 1 to 2 months on average, with minimal impact on the business [10] Company Strategy and Development Direction - The company is confident in its business model, increasing guidance for annual growth in distributable EPS to 10% to 13% through 2024, and extending dividend growth guidance to 5% to 8% annually [5][8] - The diversity of markets and asset classes provides assurance for continued growth, with a focus on sustainable infrastructure investments [13][26] Management's Comments on Operating Environment and Future Outlook - Management acknowledged macroeconomic headwinds but expressed confidence in the ability to absorb higher costs and maintain returns [9][10] - The company remains optimistic about potential climate provisions and tax credit extensions as tailwinds for growth [10] Other Important Information - The company declared a dividend of $0.375, representing a 7% increase over the previous quarter [5] - The company has extended its CarbonCount unsecured revolving credit facility from $400 million to $600 million, enhancing its liquidity position [19] Q&A Session Summary Question: Inquiry about new guidance and yield assumptions - Management indicated that yields are expected to remain in the mid-7% range, with a well-spread pipeline throughout the year [29][30] Question: Changes in competition and macroeconomic impacts - Management noted no significant changes in competition but emphasized strong programmatic relationships that help win deals [31][32] Question: Confidence in growth range amidst uncertainties - Management stated that various factors could influence the growth range, but specific policy items were not singled out as having a direct impact [36][37] Question: Asset class performance expectations - Management highlighted sustainable infrastructure investments as potential higher-yielding opportunities, though still in nascent markets [38] Question: Mix of gain on sale versus net investment income - Management expects both distributable net investment income and gain on sale to rise, with a consistent growth trajectory [42][43] Question: Update on programmatic opportunities with partners - Management expressed strong programmatic opportunities with various partners, emphasizing the mutual benefits of these relationships [59] Question: Energy efficiency opportunity and RFP activity - Management noted that while there has been some slowdown in energy efficiency projects, deals are still being completed [60] Question: Sustainable infrastructure asset class developments - Management pointed to state legislation and growing activity in sustainable farming and renewable natural gas as potential catalysts for growth in this asset class [64]

Hannon Armstrong Sustainable Infrastructure Capital, Inc. (NYSE:HASI) Q3 2021 Earnings Conference Call November 4, 2021 5:00 PM ET Company Participants Chad Reed – Vice President, Investor Relations and ESG Jeff Eckel – Chairman and Chief Executive Officer Jeff Lipson – Chief Operating Officer and Chief Financial Officer Conference Call Participants Philip Shen – Roth Capital Partners Eric Borden – Berenberg Capital Market Christopher Souther – B. Riley Noah Kaye – Oppenheimer Ben Kallo – Baird Jeff Osborne ...

| --- | --- | --- | --- | --- | --- | |-------------------------------------------|-------|-------|-------|---------------------------|-------| | | | | | | | | | | | | | | | HANNON ARMSTRONG | | | | INVESTING CLIMATE DIAUJII | | | EARNINGS PRESENTATION Second Quarter 2021 | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | FORWARD LOOKING STATEMENTS 2 Some of the information contained herein are forward-looking statements within the meaning of Section 27A of the Securities Act ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number 001-35877 HANNON ARMSTRONG SUSTAINABLE INFRASTRUCTURE CAPITAL, INC. (Exact name of registrant as specified in its charter) Maryland 46-1347456 (State or other jurisdiction of incorporation or organization) WASHINGTON, DC 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ...