Transalta Corporation · TSX:TA
Transalta — 2013 Canaccord Genuity Infrastructure Conference
11 slides from Transalta's conference presentation, September 2013
Slide 1: 2013 Canaccord Genuity Infrastructure Conference
2013 Canaccord Genuity Infrastructure Conference Dawn Farrell Chief Executive Officer 1
Slide 2: Forward Looking Statements
Forward Looking Statements This presentation may contain forward looking statements, including statements regarding the business and anticipated financial performance of TransAlta Corporation. All forward looking statements are based on our beliefs and assumptions based on information available at t
Slide 3: Leading Diversified Power Generation Company
Leading Diversified Power Generation Company Coal: 4,926 MW1 Diversified fleet of ~9,000 MWs located in Canada, United States and Australia Gas: Market cap of over $3.5 billion 1,913 MW Investment grade credit ratings Hydro: Sponsor and majority owner of TransAlta 900 MW Renewables W
Slide 4: Value Proposition
Value Proposition Diversified portfolio Over 75 facilities spanning multiple regions and fuels Attractive yield supported by adequate cash flow Highly contracted assets provide stable cash flows and support dividend 500 MW of new long-term contracts recently signed Significant incremental EB
Slide 5: Delivering on the Strategy
Delivering on the Strategy Objective Actions Extend life of existing assets • CE Gen: 23 year contract with City of Riverside through new contracts • Ottawa gas fired: 20 year contract with OPA (AAA) • Centralia: 11 year contract with Puget Energy Optimize value of existing • Implemented shared serv
Slide 6: Significant Upside Potential Post Alberta PPAs
Significant Upside Potential Post Alberta PPAs Expiry of the Alberta Coal and Hydro PPAs expected to provide significant EBITDA upside and dividend coverage $mm Current Coal PPAs generate average revenue of ~$30/MWh PPA Buyers' Economics ¹ Illustrative representation of estimated average EBITDA over
Slide 7: Cash Flow Strength
Cash Flow Strength Excess Funds from Operations available to fund sustaining capital, debt and growth ¹ Potential based on $65/MWh price in Alberta 7
Slide 8: Future Growth Opportunity Set
Future Growth Opportunity Set ~21,000 MW of Market opportunity requiring potential investment of $42 billion over the next 10 years MW Competitive Advantages: Creation of operational and corporate synergies Ability to use tax attributes in the U.S. Ability to manage merchant risk Multiple fu
Slide 9: Sundance 7
Sundance 7 Alberta market continues to see considerable demand growth due to industrial & mining activity and its indirect impacts Market will also see significant retirements in capacity in the next 10 years 800 MW of coal retiring in 2019 Between 1,200 and 3,200 MW of new capacity, above wha
Slide 10: TransAlta Renewables
TransAlta Renewables Brings Significant benefits to TransAlta Corporation Establishes focused and competitive vehicle for pursuing and funding growth opportunities in renewable power Provides additional financial flexibility for TransAlta TransAlta retains majority ownership and operator Con
Slide 11: TransAlta: Strategic Objectives
TransAlta: Strategic Objectives “Build a competitive power company that is committed to serving customers in its key markets, sensitive to stakeholder concerns and consistent in its ability to grow shareholder value.” Base Business Deliver sustainable, consistent and stable cash flows that provide
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