Slide 1: Year End and Q4 2023 Results
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Slide 2: Disclaimer and forward-looking statements
Disclaimer and forward-looking statements This presentation includes "forward-looking information" within the meaning of applicable Canadian securities laws, and "forward-looking statements" within the meaning of applicable United States securities laws, including the United States Private Securitie
Slide 3: John Kousinioris, President and Chief Executive Officer
John Kousinioris President and Chief Executive Officer
Slide 4: 2023 achievements
2023 achievements Transaction At A Glance 2023 results and Growth and customer Strategic initiatives financial position solutions Adjusted EBITDA1 of 418 MW of advanced-stage TransAlta Renewables $1,632 million; 41% from development projects acquisition adds proportionate renewables capacity of +1.2
Slide 5: Enhanced share repurchase program for 2024
Enhanced share repurchase program for 2024 Highlights 2024 Share repurchase program Long-term shareholder value creation Dividends drives our investment and capital allocation Balanced, decisions prudent and disciplined Targeting appropriate risk-adjusted Other2 $525 approach to returns million1 cap
Slide 6: Clean Electricity Growth Plan to 2028
Clean Electricity Growth Plan to 2028 Up to 1.75 GW $3.5 billion $350 million Clean electricity Growth capex New annual EBITDA 2024 2025 2028 5 GW 10 GW Development pipeline Development pipeline 6
Slide 7: Development pipeline
Development pipeline Pipeline expanded by >1.3 GW Since 2022 Surpassed goal of 5 GW pipeline By 2025 +29% New target to deliver 10 GW pipeline By 2028 7
Slide 8: Committed to emissions reductions
Committed to emissions reductions Combined emissions of TransAlta and Heartland2 TransAlta carbon reductions achieved to date1 (million tonnes CO2) 66% 21M 39.0 From 2015 levels Annual tonnes -75% from 2015 23.2 ~10% 0% 16.9 Of Canada’s Paris Coal-fired emissions Agreement Target in Canada 2015 2020
Slide 9: Todd Stack, Executive Vice President, Finance and CFO
Todd Stack Executive Vice President, Finance and Chief Financial Officer
Slide 10: Alberta electricity portfolio
Alberta electricity portfolio 2023 realized prices Alberta hedging 2024 131% 122% Price $85 / MWh AB Hydro average AB Gas average Energy real i z ed merch an t real i z ed merch an t Volume 8,152 GWh en ergy pri ce to en ergy pri ce to spot i n 2023 1 spot i n 2023 1 Price $2.76 / GJ Natural Gas Vol
Slide 11: TransAlta segmented results
TransAlta segmented results Year and three months ended December 31, 2023 ($millions) 2023 2022 Adjusted EBITDA1 Q4 2023 Q4 2022 Another 459 527 Hydro 56 133 year of 257 311 Wind and Solar 82 92 exceptional performance 801 629 Gas 141 264 122 86 Energy Transition 26 19 109 183 Energy Marketing 14 63
Slide 12: Strong performance from Hydro
Strong performance from Hydro Hydro adjusted EBITDA 1 ($millions) Hydro volumes (GWh) 600 900 800 500 700 Volume (GWh) 400 600 $ millions 500 300 400 200 300 200 100 100 - 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2021 2022 2023 2021 2021 2021 2021 2022 2022 2022 2022 2023 2023 2023 2023 Ancillary Servi
Slide 13: 2024 guidance
2024 guidance ($ millions) 2024 Outlook Adjusted EBITDA1 ($ millions) 1,150 to 1,300 FCF1 ($ millions) 450 to 600 FCF/share $1.46 to $1.94 Sustaining Capital ($ millions) 130 to 150 Market 2024 Outlook Alberta Spot 75 to 95 ($/MWh) Mid-C Spot 85 to 95 (US$/MWh) AECO Gas Price 2.50 to 3.00 ($/GJ) 1 A
Slide 14: 2024 capital allocation
2024 capital allocation Consolidated sources and uses 2024 1,000 900 800 Growth Strong financial 700 Share repurchases foundation to 600 Free cash flow fund capital allocation $ millions 500 priorities 400 Heartland 300 200 Common dividend Cash and other 100 Amortizing debt repaid and tax equity 0 S
Slide 15: 2024 priorities
2024 priorities Safety, reliability Growth and commercial Strategic initiatives and availability Complete Mount Keith, Horizon Hill and Progress CO2 emissions reduction to Improve leading and lagging safety White Rock 75% from 2015 levels by 2026 performance, including TRIF of 0.0 Progress 400 MW of
Slide 16: Diversified and resilient fleet, clean electricity leader with ESG focus
Diversified and resilient fleet Clean electricity leader with ESG focus 5.3+ GW growth pipeline Strong financial position Antrim, New Hampshire 16
Slide 17: Questions and answers
Questions and answers Visit us at: www.transalta.com Investor_relations@transalta.com 17
Slide 18: Development pipeline: United States
Development pipeline Potential development (excluding prospects): 2,668 – 2,718 MW United States Project MW Technology State Stage FID Horizon Hill 200 Wind OK - Monument Road 152 Wind NE 2025 Swan Creek 126 Wind NE 2025 Dos Rios 242 Wind OK 2025 Old Town 185 Wind IL 2025 Cotton Belle 1 104 Solar TX
Slide 19: Development pipeline: Canada
Development pipeline Potential development (excluding prospects): 2,371 – 3,221 MW Canada Project MW Technology Location Stage FID Tempest 100 Wind AB 2024 WaterCharger 180 Battery AB 2024 Pinnacle 1 and 2 44 Gas AB 2024 Riplinger 300 Wind AB 2025 Sunhills Solar 170 Solar AB 2025 McNeil Solar 57 Sol
Slide 20: Development pipeline: Australia
Development pipeline Potential Development (excluding prospects): 494 MW Australia Project MW Technology Location Stage FID Mt. Keith 132kV N/A Transmission Mt Keith 2024 Expansion Mt. Keith West N/A Transmission Mt Keith 2025 Network Upgrade SCE Capacity 94 Gas Kalgoorlie 2024 Expansion Port Boodar