Hannon Armstrong Sustainable Infrastructure Capital : Earnings Presentation 1Q24

Earnings Presentation

First Quarter 2024

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," "anticipate," "estimate," "plan," "continue," "intend," "should," "may," "target," or similar expressions, are intended to identify such forward-looking statements. Forward-looking statements are subject to significant risks and uncertainties. Investors are cautioned against placing undue reliance on such statements. Actual results may differ materially from those set forth in the forward- looking statements. Factors that could cause actual results to differ materially from those described in the forward-looking statements include those discussed under the caption "Risk Factors" included in our Form 10-K filed for the year ended December 31, 2023 (the "Form 10-K") with the U.S. Securities and Exchange Commission ("SEC"), as well as in other reports that we file with the SEC.

Other important factors that we think could cause our actual results to differ materially from expected results are summarized below, including the impact of the Inflation Reduction Act ("IRA") and on the U.S., regional and global economies, the U.S. climate solutions market and the broader financial markets. Other factors besides those listed could also adversely affect us. In addition, we cannot assess the impact of each factor on our business or the extent to which any factor, or combination of factors, may cause actual results to differ materially from those contained in any forward-looking statements.

Forward-looking statements are based on beliefs, assumptions and expectations as of March 31, 2024. The guidance discussed herein reflects our estimates of

1. yield on our existing portfolio; (ii) yield on incremental portfolio investments, inclusive of our existing pipeline; (iii) the volume and profitability of transactions;

1. amount, timing, and costs of debt and equity capital to fund new investments; (v) changes in costs and expenses reflective of our forecasted operations; (vi) disruptions to the renewable energy supply chain that may result from changes in the regulatory environment and other factors; (vii) the general interest rate and market environment; (viii) the impact of the Inflation Reduction Act on our industry and our business; (ix) the impact of our revocation of our REIT election; (x) and our ability to expand into new climate solutions markets. All guidance is based on current expectations regarding economic conditions, the regulatory environment, the dynamics of the markets in which we operate and the judgment of our management team, among other factors. In addition, actual dividend distributions are subject to approval by our Board of Directors on a quarterly basis. We have not provided GAAP guidance as discussed in the Supplemental Financial Data slides of this presentation. We disclaim any obligation to update, or publicly release the results of any update or revisions to, these forward-looking statements, including to reflect new estimates, events or circumstances after the date of this presentation.

This presentation refers to certain financial measures that were not prepared in accordance with U.S. generally accepted accounting principles ("GAAP"). Additional information concerning these non-GAAP financial measures as well as reconciliations of such non-GAAP financial measures to the most directly comparable GAAP financial measures can be found in the Appendix herein. Estimated carbon emission savings are calculated using the estimated kilowatt hours, gallons of fuel oil, million British thermal units of natural gas and gallons of water saved as appropriate, for each project. The energy savings are converted into an estimate of metric tons of carbon dioxide equivalent emissions based upon the project's location and the corresponding emissions factor data from the U.S. Government and International Energy Agency. Portfolios of projects are represented on an aggregate basis. The carbon and water savings information included in this presentation is based on data from a third-party source that we believe to be reliable. We have not independently verified such data, which involves risks and uncertainties and is subject to change based on various factors. Past performance is not indicative nor a guarantee of future returns.

2

Executing on Our Plan

Key Highlights

$2b	$0.68
Q1 Adjusted EPS1
KKR Partnership
$0.98 Q1 GAAP EPS2

24%	$0.415
YoY Growth	Dividend
in Managed Assets	Per Share

$562m

Q1 Closed Transactions

Affirm

Guidance3

1. See Appendix for an explanation of Adjusted Earnings (previously Distributable Earnings), including reconciliations to the relevant GAAP measures | 2. On a fully diluted basis | 3. See	3
Appendix

Evolution of the Funding Platform

Primarily		Access		Access to		Access
funded by		to public		unsecured		to private
securitizations		equity		corporate		infrastructure
				debt		capital

Pre-IPO	2013	2019	2024
	Initial	Corporate	CarbonCount
	Debt Ratings	Holdings 1
	Public Offering

CCH1 is a Significant Milestone in the Expansion of Our Access to

Diversified Sources of Capital

4

CarbonCount Holdings 1 Provides Significant Benefits

Consistent with		Increases		Fee
Capital Light Priority		Investment Capacity		Income

Reduces Reliance	… As Clean Energy Demand	Diversity &
on Capital Markets	Increases our Opportunities	Stability of Revenue

More Dynamic and Resilient

5

HASI & KKR: A Powerful Collaboration

• Partner with KKR Core Infrastructure platform to accelerate pace of investment
• HASI will source and manage investments for CCH1 consistent with existing investment strategy and interface with our clients

K K R

50%	50%
ownership	ownership

• Expect to deploy combined $2b over the next 18 months
• Seed investments of nearly $200m1 with formation of CCH1
• HASI to earn upfront fees and recurring asset management fees

Services

Agreement

CarbonCount

Holdings 1 LLC

Investments

1. Including deferred fundings	6

Growth in Pipeline Reflects Long-term Demand for Energy Transition

BTMGC

51%26%

>$5.5b

12-mo

Pipeline1

FTN

• Demand growth continues to drive opportunities
• Pipeline growth in community solar, energy efficiency, GC solar and renewable fuels

23%

Q1 Closed Transactions

Q1 Closed Transactions	$ in millions
by Asset Class
Resi Solar	$124
Public Sector	$83
C&I	$82
Community Solar	$50
GC Solar	$46
Other3	$177

• $562m closed investments in Q1
• ~10.5%2 average yield on newly negotiated balance sheet investments

1.	12-months pipeline as of 3/31/24. BTM is Behind-the-Meter, GC is Grid-Connected, and FTN is Fuels, Transport and Nature
2.	Excluding follow-on investments of previous transactions	7
3.	Securitization of a decommissioning payment

Higher Gain on Sale Income Driving Q1 Earnings Growth

Results Unaudited1	1Q23	1Q24	Change
YoY

Adjusted NII1

GAAP Diluted EPS

Adjusted EPS

GAAP NII

Adjusted NII

Gain on Sale, Fees and Securitization Income

$0.26	$0.98
$0.53	$0.68	+28%
$12.4m	$8.7m
$47.1m	$64.3m	+37%
$19.5m	$35.3m	+81%

	1Q23	1Q24
Adjusted NII	$47.1m	$64.3m

Recurring Capital Light Income

*Will include CCH1 recurring management fees

	1Q23	1Q24
Securitization Income	$3.4m	$4.9m

Transactions Closed	$389m	$562m
Portfolio2	$4.7b	$6.4b	+36%
Managed Assets	$10.4b	$12.9b	+24%
Adjusted ROE3	12.0%	13.9%

Upfront Capital Light Income

*Will include CCH1 upfront fees

	1Q23	1Q24
GoS & Fees	$16.1m	$30.4m

1. As of 1Q24, Distributable Earnings has been renamed Adjusted Earnings. See Appendix for an explanation of Adjusted Earnings, Adjusted NII and Managed Assets, including reconciliations to the relevant GAAP measures, where applicable
2. GAAP-based

3. Adjusted ROE is calculated using Adjusted Earnings for the period and the respective ending equity balances. Refer to reconciliation of GAAP Earnings to Adjusted Earnings	8

Continued Growth in Portfolio & Managed Assets

36% growth YoY			24% growth YoY
Public Sector
3%
C&I	GC Solar			GC Solar
6%			17%
Community	19%
Solar			Public
10%			Managed
Portfolio1		Sector	Wind
	40%
$6.4b				Assets1	10%
Wind
		$12.9b
Resi Solar	19%			FTN
				7%
29%
FTN			Resi Solar	Other
		3%
14%			14%

"Portfolio" refers to all investments held on balance sheet

"Managed Assets" incudes (1) the Portfolio, (2) investments managed off-balance sheet in securitization trusts, and (3) investments managed for CCH12

1.	GAAP-based Portfolio, as of 3/31/24. Total may not sum due to rounding	9
2.	As of 1Q24, assets managed in CCH1 is zero

Higher ROE in Q1 and Maintaining Strong Margins

				Adjusted ROE 1		Portfolio Yield 2		Interest Expense / Avg Debt Balance3
									Gain on Sale from asset
												13.9%			rotation driving higher Q1
														ROE
	11.1%					11.2%	11.4%	11.8%
	10.5%	10.7%					New asset yields in Q1 of
															~10.5%4
			7.6%	7.6%	7.5%	7.5%	7.9%	8.0%
	6.8%
															Temporary compression
												5.7%			contemplated in guidance
	5.4%	4.9%	5.1%					5.0%			due to newly issued
			4.6%	4.3%				corporate debt yet to be
														deployed in higher yielding
	2018	2019	2020	2021		2022	2023	1Q24
			assets

Capital light activities continue to drive ROE higher		Proforma refinancing of 2025 and 2026 corporate
	bonds using current market credit spreads and existing
than historical results
	hedges results in blended cost of debt of 6.0%5

1. Adjusted ROE is calculated using Adjusted Earnings for the period and the average equity ending balances for the period. Refer to reconciliation of GAAP Earnings to Adjusted Earnings
2. For explanation of Portfolio Yield, see Appendix
3. Excludes incremental interest expense related to debt prepayments. Shown here as a % of average debt balance

4.	Excluding follow-on investments of previous transactions	10
5.	Proforma calculation assumes debt balances as of 3/31/24