Transalta Corporation · TSX:TA
Transalta — Investor Presentation (June 2011)
18 slides from Transalta's investor presentation, Jun 10, 2011
Slide 1: Impact of Adopting IFRS
Impact of Adopting IFRS Revised June 10, 2011
Slide 2: Forward looking statements
Forward looking statements This presentation contains forward-looking information related to the impact of adopting International Financial Reporting Standards (IFRS). This information is provided to illustrate the anticipated impact of adopting IFRS on TransAlta’s financial statements based on the
Slide 3: Agenda
Agenda Introduction Bottom line impacts IFRS impact assessment Review of financial statement impacts Key takeaways Q&A 3
Slide 4: Adoption of IFRS - Introduction
Adoption of IFRS - Introduction Financial information contained in this presentation is based on TransAlta’s Dec. 31, 2010 CGAAP results adjusted to reflect IFRS in effect as of Jan. 1, 2011 This information is subject to audit and possible further changes up to the release of TransAlta’s first
Slide 5: Bottom line impacts – Dec. 31, 2010
Bottom line impacts – Dec. 31, 2010 2010 comparable earnings under IFRS within $0.01 of CGAAP • Reported earnings lower by $0.17 due primarily to timing of impairment charges Impact to assets are modest ~ 2% decrease • Primarily due to CE Gen and Wailuku being equity accounted and retrospective
Slide 6: IFRS impact assessment
IFRS impact assessment 38 standards 8 have measureable impacts to TransAlta (summary below), of which 6 are significant 10 require process changes and have disclosure impacts or potential future measurement impacts 20 require no changes as they are converged or not applicable to TransAlta Standard P
Slide 7: IFRS Statement of Financial Position As at Dec. 31, 2010
IFRS Statement of Financial Position As at Dec. 31, 2010 ($ millions) CGAAP Adj IFRS* Explanation of Differences (decrease) Cash 58 (23) 35 Equity acounting for our joint ventures (CE Gen and Wailuku) Accounts receivable 428 (16) 412 Equity acounting for our joint ventures Other current assets 374 6
Slide 8: IFRS Statement of Earnings Year ended Dec. 31, 2010
IFRS Statement of Earnings Year ended Dec. 31, 2010 ($ millions) CGAAP Adj IFRS* Explanation of Differences (decrease) Revenue 2,819 (146) 2,673 Equity accounting for our joint ventures ($136) and Ft Sask now accounted for as finance lease ($10) Fuel & purchased power 1,202 (17) 1,185 Equity account
Slide 9: IFRS Statement of Cash Flows Year ended Dec. 31, 2010
IFRS Statement of Cash Flows Year ended Dec. 31, 2010 ($ millions) CGAAP Adj IFRS* Explanation of Differences (decrease) Net earnings (loss) 219 37 256 Asset impairment $49 partially offset by capitalization of MIC ($11) Depreciation 490 21 511 Amortization of MIC $81 partially offset by equity acco
Slide 10: Key takeaways
Key takeaways IFRS impact on key performance measures and metrics is modest IFRS based financial statements will look largely the same but will contain additional disclosure Ongoing changes to IFRS and interpretations are inevitable The adoption of IFRS does not impact: • our cash flow gener
Slide 11: Tra nsfl ta
Tra nsfl ta O&A Multiple Fuel Sou ces “%y yy, Singu! ar Value
Slide 12: Appendix
Appendix A sAlta = Tran Multiple Fuel Sources Singular Value ~
Slide 13: Presentation differences
Presentation differences Differences related to significant changes in the underlying accounting: • Equity accounting re certain JV’s – CE Gen and Wailuku previously proportionately consolidated now equity accounted • Finance lease accounting – Fort Sask removed from PP&E and replaced with a finan
Slide 14: Jan. 1, 2010 IFRS 1 elections
Jan. 1, 2010 IFRS 1 elections IFRS 1 is applicable to the first-time adoption of IFRS, with all adjustments impacting the opening balance sheet IFRS must be applied retrospectively with restatement of 2010 results IFRS 1 provides relief in certain areas through mandatory exemptions and electio
Slide 15: IFRS Statement of Financial Position As at Jan. 1, 2010
IFRS Statement of Financial Position As at Jan. 1, 2010 Joint Asset Employee Bus. ($ millions) CGAAP MIC Leases Ventures Impairm't ARO Benefits Comb. Other IFRS* Cash 82 (29) 53 AR 421 (16) 405 Finance lease receivable - 2 2 Asset held for sale - 4 4 Other current assets 318 (1) 2 319 821 - 2 (46) -
Slide 16: IFRS Statement of Financial Position As at Dec. 31, 2010
IFRS Statement of Financial Position As at Dec. 31, 2010 Joint Asset Employee ($ millions) CGAAP MIC Leases Ventures Impairm't ARO Benefits Other IFRS* Cash 58 (23) 35 AR 428 (16) 412 Finance lease receivable - 2 2 Asset held for sale - 60 60 Other current assets 374 (1) 3 376 860 - 2 (40) - - - 63
Slide 17: IFRS Statement of Earnings Year ended Dec. 31, 2010
IFRS Statement of Earnings Year ended Dec. 31, 2010 CGAAP Joint Asset Employee Bus. IFRS* ($ millions) 2010 MIC Leases Ventures Impairm't ARO Benefits Comb. Other 2010 Revenue 2,819 (10) (136) 2,673 Fuel & purchased power 1,202 (11) (3) (3) 1,185 Gross margin 1,617 - (10) (125) 3 3 - - - 1,488 OM&A
Slide 18: IFRS Statement of Cash Flows Year ended Dec. 31, 2010
IFRS Statement of Cash Flows Year ended Dec. 31, 2010 CGAAP Joint Asset Emp Bus. IFRS* ($ millions) 2010 MIC Leases Ventures Impairm't ARO Benefits Comb. Other 2010 Net earnings (loss) 219 (11) - 3 46 1 (2) (1) 1 256 Depreciation and amortization 490 81 (3) (49) (11) 2 1 511 Gain loss on sale of equ