Transalta Corporation · TSX:TA
Transalta — Shareholder Meeting (April 2008)
44 slides from Transalta's shareholder meeting presentation, Apr 22, 2008
Slide 1: We're ready for a changing world
Annual Meeting April 22, 2008 We’re ready for a changing world ▀1
Slide 2: Board of Directors: William D. Anderson
Board of Directors William D. Anderson ▀2
Slide 3: Board of Directors: Stanley J. Bright
Board of Directors Stanley J. Bright ▀3
Slide 4: Board of Directors: Timothy W. Faithfull
Board of Directors Timothy W. Faithfull ▀4
Slide 5: Board of Directors: Gordon D. Giffin
Board of Directors Gordon D. Giffin Gordon D. Giffin ▀5
Slide 6: Board of Directors: C. Kent Jespersen
Board of Directors C. Kent Jespersen ▀6
Slide 7: Board of Directors: Michael M. Kanovsky
Board of Directors Michael M. Kanovsky ▀7
Slide 8: Board of Directors: Gordon S. Lackenbauer
Board of Directors Gordon S. Lackenbauer ▀8
Slide 9: Board of Directors: Dr. Martha C. Piper
Board of Directors Dr. Martha C. Piper ▀9
Slide 10: Board of Directors: Luis Vázquez Senties
Board of Directors Luis Vázquez Senties ▀ 10
Slide 11: Board of Directors: Stephen G. Snyder
Board of Directors Stephen G. Snyder ▀ 11
Slide 12: Board of Directors: Donna Soble Kaufman
Board of Directors Donna Soble Kaufman ▀ 12
Slide 13: Board of Directors
Board of Directors TransAlta
Slide 14: We're ready for a changing world
Annual Meeting April 22, 2008 We’re ready for a changing world ▀ 14
Slide 15: Remarks from Chair of the Board
Remarks from Chair of the Board Donna Soble Kaufman ▀ 15
Slide 16: Monitoring progress against strategic plan
Monitoring progress against strategic plan Growth investments Portfolio optimization Share buybacks Dividends Eight per cent increase Formal dividend policy ▀ 16
Slide 17: Championing sustainable development
Championing sustainable development ▀ 17
Slide 18: Board of Directors
Board of Directors TransAlta
Slide 19: Chief Financial Officer's Report
Chief Financial Officer’s Report Brian Burden ▀ 19
Slide 20: 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 21: Outline
Outline Financial Results 2008 – 2010 Outlook Financial Strategy ▀ 21
Slide 22: 2007 Financial Results: A record year
2007 Financial Results : A record year Results 2007 2006 2005 Comparable earnings (MM) $264 $234 $161 Net earnings (MM) $309 $45 $186 Per share Comparable earnings $1.31 $1.16 $0.82 Net earnings $1.53 $0.22 $0.94 Dividends $1.00 $1.00 $1.00 Cash flow from Operations (MM) $847 $490 $620 Total Shareho
Slide 23: Q1 2008 – Another strong quarter
Q1 2008 – Another strong quarter Results Q1 2008 Q1 2007 Comparable earnings (MM) $99 $56 Net earnings (MM) $33 $56 Per share Comparable earnings $0.50 $0.28 Net earnings $0.17 $0.28 Dividends $0.27 $0.25 Cash flow from Operations (MM) $237 $331 ▀ 23
Slide 24: EPS and cash flow growth
EPS and cash flow growth 2008 – 2010 Expect low double digit EPS growth and strong cash flow from operations COMPARABLE EPS CASH FLOW FROM $2.20 Comparable EPS OPERATIONS Cash Flow from Operations $2.00 MM $2.00 $1.80 $1,000 $950 $1.60 $900 $1.40 $800 $777 $850 $1.31 $1.44 $1.20 $1.16 $700 $675 $620
Slide 25: Financial strategy supports consistent shareholder value creation
Financial strategy supports consistent shareholder value creation Financial strength provides shareowners an advantage in a long-cycle, capital intensive, cyclical industry Maintain balanced capital allocation plan Maintain financial flexibility Maintain focus on IRR, ROCE, and TSR objectives ▀ 2
Slide 26: Balanced capital allocation plan creates consistent value over time
Balanced capital allocation plan creates consistent value over time Increasing capital efficiency is the focus of management and the Board ALTERNATIVES DIRECTION ACTION Portfolio Divest or improve under- Mexico – PSA signed for USD $303.5 MM performing assets Sarnia - pursuing improved long-term con
Slide 27: We maintain a competitive weighted average cost of capital
We maintain a competitive weighted average cost of capital Increasing Debt Spreads for Lower Weighted Average Cost of Capital Non-Investment Grade Credits For Investment Grade Companies Corporate Spreads to Spread to Emera 5.6% Treasuries (bps) BBB (bps) Fortis 5.8% Date BBB BB B BB B Canadian Utili
Slide 28: Sustainable shareholder returns in a long-cycle, capital intensive industry
Sustainable shareholder returns in a long-cycle, capital intensive, commodity power industry COMPARABLE ROCE CUMULATIVE TSR 16% 140% 120% 12% 100% 80% 8% WACC 60% 4% 40% 20% 0% 0% 2005 2006 2007 2008e 2009e 2010e 2005 2006 2007 2008e 2009e 2010e ▀ 28
Slide 29: President and CEO's Report
President and CEO’s Report Steve Snyder ▀ 29
Slide 30: Our messages
Our messages Strong financial shape Strong cash flow Balanced approach to capital allocation Sustainable development and technical knowledge Customer base in growing markets 2,201 dedicated employees ▀ 30
Slide 31: Delivering results
Delivering results low double-digit Competitive Favourable earnings growth strengths + market = and conditions strong cash flow ▀ 31
Slide 32: A diverse portfolio of fuels
A diverse portfolio of fuels Our diversification supports stable, steady income and cash flow 9,000 8,000 7,000 6,000 Hydro, Wind, Geothermal 5,000 Natural Gas 4,000 Coal 3,000 2,000 1,000 0 1998 2008 ▀ 32
Slide 33: Our market focus
Our market focus CANADA 6,023 MW UNITED STATES 2,043 MW AUSTRALIA 300 MW ▀ 33
Slide 34: Growth Focus
Growth Focus Geothermal Wind Cogeneration ▀ 34
Slide 35: Announced growth projects
Announced growth projects Keephills 3 Kent Hills Blue Trail ▀ 35
Slide 36: New technologies
New technologies Post combustion CO2 capture is expected to be available commercially in the long-term to retrofit existing thermal plants and any new build ▀ 36
Slide 37: Markets outside of western Canada and U.S.
Markets outside of western Canada and U.S. Mexico: Executed on strategy Australia: Great value Ontario: Complex Assets are performing well ▀ 37
Slide 38: Challenges
Challenges Environment Emerging Technologies Plant replacement costs ▀ 38
Slide 39: The triple E equation
The triple E equation Environment Economic Energy Health Growth ▀ 39
Slide 40: Addressing the challenge
Addressing the challenge A complex problem Infrastructure costs to consumers and shareowners Requirement for government/ research/industry partnerships Demand management The strategic value of coal ▀ 40
Slide 41: The path forward
The path forward Carbon Capture and Sequestration Investment in renewables Increase interconnections Encourage use of all fuel sources ▀ 41
Slide 42: An exciting time for TransAlta and the industry
An exciting time for TransAlta and the industry Short-term Grow earnings and dividend Medium-term Options to grow asset base Framework for sustained earnings growth Long-term Increasing capability to break “Triple E” equation Meet environmental standards Deliver excellent shareowner valu
Slide 43: Executive Team
Executive Team SZ TransAlta 43
Slide 44: We're ready for a changing world
We’re ready for a changing world ▀ 44