Transalta Corporation · TSX:TA
Transalta — FY2020 Earnings Presentation
17 slides from Transalta's earnings presentation, Mar 3, 2021
Slide 1: Q4 and Annual 2020 Results
Q4 and Annual 2020 Results March 3, 2021 TransAlta Corporation
Slide 2: Forward Looking Statements
Forward Looking Statements This presentation includes forward-looking statements or information (collectively referred to herein as “forward-looking statements”) within the meaning of applicable securities legislation. All forward-looking statements are based on our beliefs as well as assumptions ba
Slide 3: Dawn Farrell, Chief Executive Officer
Dawn Farrell Chief Executive Officer 3
Slide 4: 2020 Key Accomplishments & Advancements
2020 Key Accomplishments & Advancements Clean Energy Customer Focus and E2SG Investment Plan On-site Generation Completed first boiler Contract extension to 2038 Reduced 4.2M tonnes of conversion on Sundance with BHP Billiton at Southern GHG, down 20% from 2019 Unit 6 with 50% lower Cross On
Slide 5: 2020 Key Accomplishments & Advancements
2020 Key Accomplishments & Advancements Financial Position & Performance Liquidity Comparable EBITDA of Excellent liquidity to fund $927 million in line with growth program 2019 despite impact of COVID-19 Access to $2.1 billion in liquidity, including $700 FCF of $358 million or $1.30 millio
Slide 6: Todd Stack, EVP Finance & Chief Financial Officer
Todd Stack EVP, Finance & Chief Financial Officer 6
Slide 7: Full Year 2020 Financial Highlights
Full Year 2020 Financial Highlights 12- MONTHS ENDED DECEMBER 31, 2020 PPA Termination Payments Excellent cash flow generation from diversified portfolio 7
Slide 8: Alberta Electricity Prices & Outlook
Alberta Electricity Prices & Outlook ALBERTA POOL PRICE AND FORWARD CURVE ($/MWH) $120 $113 $100 $80 $62 $/MWh $60 $40 $20 $- Q4/18 Q1/19 Q2/19 Q3/19 Q4/19 Q1/20 Q2/20 Q3/20 Q4/20 Jan/Feb BOY 2021 Recent strength in forward market prices in 2021 after declines earlier in 2020 Strong pricing year
Slide 9: Hydro EBITDA Generated in 2020
HYDRO EBITDA Generated in 2020 2020 HYDRO EBITDA – EXCLUDING PPA OBLIGATION Capacity Payment 9
Slide 10: 2021 Outlook
2021 Outlook Comparable $960 – $1,080 Sustaining $175 – $210 EBITDA Capex Million Million Up 10% from 2020 at the midpoint $340 – $440 Cash to $0.18 Dividend FCF Shareholders + Share Buybacks Million Up 9% from 2020 at the midpoint Key Factors and Assumptions AB power prices $58 - $68 per MWh Mi
Slide 11: 2020 Financial Strength
2020 Financial Strength FCF ($MILLIONS) FCF PER SHARE $450 $1.60 $1.40 $367 $379 $375 $1.20 $1.34 $358 $1.28 $1.30 $300 $328 $1.00 $1.14 $257 $0.80 $0.89 $0.60 $150 $0.40 $0.20 $- $- 2016 2017 2018 2019 2020 2016 2017 2018 2019 2020 NET RECOURSE DEBT ($BILLIONS) LIQUIDITY ($BILLIONS) $2.5 $3.0 $2.5
Slide 12: John Kousinioris, Chief Operating Officer
John Kousinioris Chief Operating Officer 12
Slide 13: 2021 Strategic Priorities
2021 Strategic Priorities Successfully complete conversion strategy Lead E2SG policy development Optimize our business in the Alberta merchant market Grow our customer-centric clean power solutions business Onsite Customer Renewables generation solutions Maintain a strong financial position Maintain
Slide 14: Current Pipeline of Growth Opportunities
Current Pipeline of Growth Opportunities Significant number of growth projects in Projects Owned Location COD Range MW advanced or early-stage development Advanced-Stage Projects in Development Garden Plain Wind 130 AB 2022 – 2023 Tempest Wind 70 AB 2023 – 2024 Horizon Hill Wind 200 OK 2023 – 2024
Slide 15: TransAlta's Carbon Transition
TransAlta’s Carbon Transition GHG EMISSIONS (MILLION TONNES CO2e) $375 50 Emissions (million tonnes 40 30 Reduced 4.2 million tonnes - CO2e) 20% lower than 2019 20 10 0 2005 2010 2015 2019 2020 2022E 2026E Canada Other To achieve Paris Agreement targets, Canada would need to reduce emissions by 22
Slide 16: TransAlta - An Attractive Investment
TransAlta - An Attractive Investment Well-diversified Clean power portfolio of assets leader with strong driving resilient E2SG focus cash flows Robust and diversified pipeline ~2.5 GW of with Strong financial opportunities and position, financial leading development discipline, and capacity experti
Slide 17: Questions and Answers
TransAlta tye, Powering Economiesand:Communities = Contact us today Visit us at TransAlta.com a