Slide 1: Q2 2023 Results
Q2 2023 Results August 4, 2023
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 3
Slide 4: Q2 2023 At A Glance
Q2 2023 At Transaction Achievements A Glance Q2 2023 Results and Strategic Financial Position Initiatives Adjusted EBITDA1 of of advanced-stage Entered into , an increase of development projects FCF1 of or per share, an Returned and increase of Added to development in Q2 and H1 to pipeline across Ca
Slide 5: Projects Under Construction
Projects Under Construction Garden Plain Horizon Hill White Rock Wind Wind Wind out of 34 turbines fully out of 26 turbines in assembled to operation arrive in August in has progress commenced construction is underway Mt. Keith Transmission Northern Expansion Goldfields Solar All major equipment All
Slide 6: Advanced-Stage Projects
Advanced-Stage Projects Target Estimated Spend EBITDA MW Location Type Completion ($millions) ($millions) Date Battery WaterCharger 180 Cochrane, AB $195 – $215 $17 – $20 2024 Storage Australian Transmission n/a Western Australia Transmission AU$70 – AU$75 AU$7 – AU$8 2024 Expansion Pinnacle 1 and 2
Slide 7: Development Pipeline ~4.6 GW
Development Pipeline Changes to Development Pipeline (MW) ~4.6 GW Currently in development in our 3 core geographies 1 Development pipeline expansion on track to meet 2025 target 7 1 Net of projects removed from pipeline in 2021.
Slide 8: 2023 Outlook Update
2023 Outlook Update Revised Outlook Previous Outlook as of Change from Previous ($ millions) Q2 2023 Q1 2023 Midpoint Adjusted EBITDA1 $1,700 to $1,800 $1,450 to $1,550 + 17% FCF1 $850 to $950 $650 to $750 + 29% Power and Gas Prices Power and Gas Prices Change from Previous Market 2023 Revised Outlo
Slide 9: Todd Stack, EVP Finance and Chief Financial Officer
Todd Stack Executive Vice President, Finance and Chief Financial Officer President, TransAlta Renewables Inc.
Slide 10: Alberta Electricity Portfolio
Alberta Electricity Portfolio Alberta Hedging 2023 BOY* 2024 2025 Q2 2023 Realized Prices Price $102 / MWh $82 / MWh $83 / MWh Energy Volume 3,570 GWh 4,506 GWh 2,423 GWh 125% 127% Price $2.27 / GJ $2.64 / GJ $3.62 / GJ Natural AB Hydro average AB Gas average real i z ed merch an t real i z ed merch
Slide 11: TransAlta Segmented Results
TransAlta Segmented Results 3 Months Ended June 30, 2023 ($millions) Q2 2023 Adjusted EBITDA1 Q2 2022 147 Hydro 88 50 Wind and Solar 88 166 Gas 65 13 Energy Transition 11 43 Energy Marketing 50 (32) Corporate (23) 387 Total 279 Exceptional performance from our Alberta fleet 1 Adjusted EBITDA and FCF
Slide 12: Alberta Hydro Continues to Outperform
Alberta Hydro Continues to Outperform Hydro Adjusted EBITDA 1 ($millions) Hydro Volumes (GWh) 160 900 800 140 700 120 Volume (GWh) 600 $ millions 100 500 80 400 60 300 40 200 20 100 - 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q2 2021 Q2 2022 Q2 2023 2021 2021 2021 2021 2022 2022 2022 2022 2023 2023 TA EBITDA
Slide 13: TransAlta Corporation and TransAlta Renewables Transaction At A Glance
TransAlta Corporation and TransAlta Renewables Transaction At A Glance Offer Support and Path to Terms Completion $13.00 per RNW share supported by a fairness opinion by RBC Capital Markets Consideration mix of $800 million Expected to close early of cash and $584 million in TAC October 2023 shares,
Slide 14: Next Steps for TransAlta Renewables Shareholders
Next Steps for TransAlta Renewables Shareholders Execution of Arrangement Agreement between TAC and RNW July 10, 2023 Interim Order Obtained from Alberta Court of King’s Bench August 2023 Shareholder Approval Management Information Circular mailed to RNW Shareholders August 25, 2023 RNW Shareholder
Slide 15: 2023 Priorities
2023 Priorities Safety, Reliability Strategic Initiatives and Availability Secure 500 MW of growth Accelerate CO2 emissions reduction to Achieve strong safety performance 75% from 2015 levels by 2026 Complete Garden Plain, Northern Achieve strong fleet availability of Goldfields Solar, White Rock, H
Slide 16: Our Value Proposition
Diversified and Clean electricity Our resilient fleet leader with ESG focus Value Proposition 4.6+ GW Strong growth pipeline financial position
Slide 17: Questions and Answers
Questions and Answers Visit us at: www.transalta.com Investor_relations@transalta.com
Slide 18: Development Pipeline: United States
Development Pipeline: United States Total All Stages: 2,619 MW – 2,869 MW Project MW Type Location Stage COD Range White Rock West 100 Wind OK 2024 White Rock East 200 Wind OK 2024 Horizon Hill 200 Wind OK 2024 Old Town 185 Wind IL 2025 Trapper Valley 225 Wind WY 2028 Monument Road 152 Wind NE 2025
Slide 19: Development Pipeline: Canada
Development Pipeline: Canada Total All Stages: 2,256 MW – 3,106 MW COD Project MW Type Location Stage Range Garden Plain 130 Wind AB 2023 Tempest 100 Wind AB 2025 WaterCharger 180 Battery AB 2024 Pinnacle 1 and 2 44 Gas AB 2025 Riplinger 300 Wind AB 2026 Red Rock 100 Wind AB 2028 Willow Creek 1 70 W
Slide 20: Development Pipeline: Australia
Development Pipeline: Australia Total All Stages: 412 MW COD Project MW Type Location Stage Range Northern Goldfields Solar 48 Hybrid Solar WA 2023 Mt Keith 132kV N/A Transmission WA 2023 Expansion SCE Capacity Expansion 94 Gas WA 2025 Australia Transmission N/A Transmission WA 2024 Expansion Wind,
Slide 21: Clean Electricity Growth Plan Execution
Clean Electricity Growth Plan Execution Capital EBITDA MW Location PPA Term Customer COD ($millions) ($millions) North Carolina Solar 122 North Carolina US$99 11 years Duke US$9 In service Garden Plain Wind 130 Hanna, AB $190 - $200 17 years1 Pembina and Pepsi $14 - $15 H2 2023 Northern Goldfields 4