Transalta Corporation · TSX:TA
Transalta — Investor Day (November 2023)
98 slides from Transalta's investor day presentation, Nov 21, 2023
Slide 1: 2023 Investor Day
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Slide 2: Disclaimer and forward-looking statements
Disclaimer and forward-looking statements TransAlta Corporation (“TransAlta” or the “Company”) is not making any offer or invitation of any thermal and peaking generation facilities; TransAlta’s acquisition of Heartland, including timing of management tools associated with hedging and trading proced
Slide 3: TransAlta's executive leadership team
TransAlta’s executive leadership team President and John Kousinioris Todd Stack Blain van Melle Kerry O’Reilly Wilks Aron Willis Chief Executive President and Chief EVP, Finance and EVP, Commercial and EVP, Growth and EVP, Project Delivery Officer Executive Officer Chief Financial Officer Customer R
Slide 4: Agenda
Agenda Strategic Overview John Kousinioris 5 Alberta Strategy Blain van Melle 22 Generation Chris Fralick 47 Break Energy Marketing Kerry O’Reilly Wilks 54 Growth and Project Execution Kerry O’Reilly Wilks & Aron Willis 59 New Technology Blain van Melle 78 Financing Strategy and Plan Todd Stack 81 C
Slide 5: Strategic Overview
Strategic Overview John Kousinioris President and Chief Executive Officer
Slide 6: TransAlta at a glance
TransAlta at a glance 6,400 MW Diversified portfolio 76 generating facilities in Canada, $8.7 billion 112 years United States and Australia Enterprise value Generation experience Strong balance sheet and capital discipline Foundation of our ~$900 million focused strategy 2023 expected free cash flow
Slide 7: Who we are
Who we are A leader in clean electricity committed to a sustainable future and a responsible energy transition Our Strategy Our Values Customer needs Safety Operational excellence Innovation People Sustainability Shareholder value Respect Integrity Braley, Massachusetts 7
Slide 8: Highly diversified portfolio of high-quality assets
Hydro Gas Wind and solar Energy Development marketing pipeline and capabilities Highly diversified portfolio of high-quality assets Stable contracted base with Alberta merchant upside 8
Slide 9: Strategic position strengthened since 2021
Strategic position strengthened since 2021 CO2 Progressed Clean Simplified Corporate Advanced Carbon Expanded Alberta Electricity Growth Structure Transition Diversification +800 MW of wind +1.2 GW increase in -800 MW of thermal +1.8 GW of complementary and solar economic ownership of generation ret
Slide 10: Delivered exceptional results
Since our last Delivered Free Cash Flow1 Adjusted EBITDA1 Investor Day exceptional +59% results Free Cash Flow1 +66% increased by $360 Million EBITDA1 increased by 2021 2023 2021 2023 $650 Million Contractedness1,2 Emissions reductions Renewable capacity1,2 (MW) (Millions tonnes CO2) (MW) Contracted
Slide 11: Electrification presents significant opportunities
Electrification presents significant opportunities CO2 Global efforts to Policy responses Corporations Significant decarbonize are are fast‐tracking and investors are investment accelerating at a the emergence of a leading by required to meet rapid pace clean electricity committing to the challenge
Slide 12: Balanced approach required for success in energy transition
Balanced approach required for success in energy transition Affordability Energy Transition Reliability Decarbonization 12
Slide 13: Strategic priorities to 2028
Strategic 1 Optimize Alberta portfolio priorities 2 Execute Clean Electricity Growth Plan to 2028 Selective expansion of flexible generation 3 and reliability assets Maintain financial strength and capital 4 allocation discipline 5 Define next generation of power solutions 6 Lead in ESG and market p
Slide 14: Clean Electricity Growth Plan to 2028
Clean Electricity Growth Plan to 2028 Up to 1.75 GW $3.5 billion $350 million Clean electricity Growth capex New annual EBITDA 2024 2025 2028 5 GW 10 GW Development pipeline Development pipeline 14
Slide 15: Our investment focus to 2028
Our investment focus to 2028 Renewables and Responsive and flexible New technology storage generation for reliability Expand core focus of onshore wind Optimize legacy gas generation Monitor and assess new to maximize cash flow and fund technologies such as storage, Expand position in solar renewabl
Slide 16: Evolution of the company
Evolution of the company Growing our Capacity (MW)1 Adjusted EBITDA (%) renewable generation +67% Renewables +61% 70% 42% Growing our contracted 2023 2028 base 2023 2028 Renewables Gas Renewables Gas Energy transition Energy marketing Energy transition +90% Contracted +177% EBITDA attributable to 72
Slide 17: Foundations for our success
Foundations for our success Optimization and trading expertise Highly credible developer Local presence Customer Focus Operational excellence Strong balance sheet Technological innovation 17
Slide 18: 2024 guidance
2024 guidance ($ millions) 2024 Outlook Adjusted EBITDA1 1,150 to 1,300 FCF1 450 to 600 Sustaining Capital 130 to 150 Market 2024 Outlook Alberta Spot 75 to 95 ($/MWh) Mid-C Spot 85 to 95 (US$/MWh) AECO Gas Price 2.50 to 3.00 ($/GJ) 18 1 Adjusted EBITDA and Free Cash Flow are non-IFRS measures. Cert
Slide 19: Committed to emissions reductions
Committed to emissions reductions Combined emissions of TransAlta and Heartland2 TransAlta carbon reductions achieved to date1 (million tonnes CO2) 76% 32M 39.0 From 2005 levels Annual tonnes -75% from 2005 23.2 19.2 15.8 ~10% 0% Of Canada’s Paris Coal-fired emissions Agreement Target in Canada 2015
Slide 20: Sustainability targets
Sustainability targets Environmental goals Social goals Governance goals Net zero by 2045 Support for indigenous 50% female Board communities representation by 2030 Reduce GHG emissions by 1 75% by 2026 Reclaim mined land in Alberta 40% company-wide female and Washington State employment by 2030 Ver
Slide 21: Recognized as a global leader
Recognized as a global leader TransAlta Corporation received an A-, which is in the Leadership band. This is above the thermal power generation sector average of B.” Ranking Overall TransAlta Corporation received an AA, which is the second highest rating given by MSCI on ESG related business practic
Slide 22: Alberta Strategy
Alberta Strategy Blain van Melle Executive Vice President, Commercial and Customer Relations
Slide 23: Alberta market evolution
Alberta market evolution Kananaskis, Alberta 23
Slide 24: Alberta business
Alberta business Maximize shareholder returns through active management of our diversified merchant portfolio Provide dynamic, cost-effective and low-carbon solutions to meet customer power demand and ESG goals Identify and evaluate market and technological sources for long-term growth Technology1:
Slide 25: Clean Electricity Regulations
Clean Electricity Regulations Icon Icon TransAlta’s Here State of play Here positioning Changing energy landscape Achieve a net-zero electricity grid by 2035 Current fleet operates under CER, for the longer of 2035 or prescribed asset end of requires a Current draft will create reliability and life
Slide 26: Alberta market review
Alberta market review Icon Icon TransAlta’s Here State of play Here positioning Near-term opportunities for Addresses reliability challenges from Market review underway to address a net-zero intermittent resources and risk of exiting existing assets electricity system transition legacy gas assets fo
Slide 27: Alberta renewable pause
Alberta renewable pause Icon Icon TransAlta’s Here State of play Here positioning Resilient to pause on AUC Response to concerns on land use, system Required for grid reliability and approvals for reliability and reclamation resiliency renewables Expected to be in place from Aug 2023 to Ensures a st
Slide 28: Major supply shift continues
Major supply shift continues Alberta installed capacity and peak load (MW) 35,000 +185% Expected supply 30,000 growth in renewables 25,000 20,000 +140% 15,000 10,000 Expected supply growth in combined 5,000 cycle gas 0 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 Cogeneration Renewables Storage
Slide 29: Prices expected to soften mid-decade with supply
Prices expected to soften mid-decade with supply Annual average power price forecast ($ per MWh) 162 149 102 47 2020 2021 2022 2023 YTD 2024 2025 2026 2027 2028 2029 2030 Actual Forecast Prices to decline before rebounding later in the decade 29
Slide 30: Intraday volatility of renewable supply
Intraday volatility of renewable supply Increasing renewable Renewable generation - maximum hourly change (MW) generation Increasing renewable generation will result in larger hour-to-hour changes in outputwill – challenging the reliability of the electricity system. result in larger hour-to-hour 2,
Slide 31: Wind generation will increase volatility in price
Wind penetration will increase volatility in price September 2023 wind generation and power price volatility 900 High Low High 3,000 Supply surplus ($0/MWh) wind wind wind 800 2,500 Wind generation (MWh) Power price ($ per MWh) 700 600 2,000 500 1,500 400 300 1,000 200 500 100 0 0 Wind Generation Po
Slide 32: Merchant electricity market evolution
Merchant electricity market evolution Higher average Lower average pricing pricing 2020 2025 2030 Moderate volatility Higher volatility Baseload generation Peaking generation and fleet diversity Lower carbon footprint Higher carbon footprint Optimization Hedging and optimization Grid reliability ser
Slide 33: Portfolio positioning
Portfolio positioning Keephills, Alberta 33
Slide 34: Increasing diversification of future portfolio
Increasing diversification of future portfolio Wind1 Hydro2 Storage3 Thermal Gas4 Peaking Gas4,5 Cogen Gas4 Assets 15 17 3 7 5 5 Capacity 1,134 MW 834 MW 350 MW 2,439 MW 431 MW 542 MW Baseload + Intermittent Baseload and Energy arbitrage / dispatchable – Peaking/ flexible Non-dispatchable Carbon-fre
Slide 35: Comparison of technology capabilities
Comparison of technology capabilities Fast Baseload Fast Response Carbon Free Regulating Spinning Supplemental Technology Frequency Energy1 Energy1 Energy1 Reserve Reserve Reserve Response Hydro Wind / Solar Thermal CTG NGCC NG Peaking Storage Legend: TA capabil
Slide 36: Value of hydro portfolio
Value of hydro portfolio Key supplier of regulating reserves Market size of ancillary services to be in the range of $200M to $400M per year Merging conventional hydro and battery Brazeau storage expands optionality 350 MW Bighorn 120 MW Growth in electrification, demand, renewables and energy impor
Slide 37: Strong track record of realized pricing and optimization
Strong track record of realized pricing and optimization Realized energy and ancillary prices ($ per MWh) 50% 300 Average Realized 250 Ancillary Price to Spot 200 150 100 126% Average 50 Realized Energy Price 0 to Spot Q1 2021Q2 2021Q3 2021Q4 2021Q1 2022Q2 2022Q3 2022Q4 2022Q1 2023Q2 2023Q3 2023 Hyd
Slide 38: Value of CTG portfolio
Value of CTG portfolio Operates in the high-value part of the offer curve – acting as super-peakers Sundance Key resources needed for market 401 MW reliability Keephills 858 MW Battle River2 550 MW Retirement and/or mothball decisions based on economics Sheerness2 600 MW Optimization and market expe
Slide 39: Thermal gas required when renewable resources are low
Thermal gas required when renewable resources are low Thermal gas capacity is Estimated thermal gas generation required (MW) required to meet Alberta demand and reliability Province loses 5.5 GW of capacity on Shortfall low renewable- resource days 1 39 1 Includes cogen NTG, CCGT and SCGT
Slide 40: Value of peaking portfolio
Value of peaking portfolio Rainbow 51 49 MW Peaking asset value to increase with intermittent generation Poplar Hill1 Valley View1 48 MW 100 MW Fast-ramping flexible units and Pinnacle2 combined with our hydro, coal-to-gas 44 MW and storage cover the entire dispatch curve Joffre1 190 MW Best-in-clas
Slide 41: Value of storage portfolio
Value of storage portfolio Strategically-located units will store surplus generation for discharge at peak periods Extremely valuable in ancillary services Brazeau PHES1 and fast-frequency response markets 900 MW Volatile price environment expected WaterCharger1 180 MW Tent Mountain PHES1 320 MW Opp
Slide 42: Alberta portfolio strategy
Alberta portfolio Horseshoe, Alberta 42 strategy
Slide 43: Hedging and optimization increases our advantage
Hedging and optimization increases our advantage Ancillary services leader 112-year extensive operating expertise Trusted C&I Peaking supplier capacity Exceptional in-house forecasting and analytical capabilities Optimization expertise Integrated asset optimization and operations to ensure portfolio
Slide 44: Hedging strategy aligned with market outlook
Hedging strategy aligned with mar market outlook Expected 2024 Power positions 2024-2026 (average MW per hour) production mostly hedged 1,200 1,000 +600 MW of 800 sales achieved through 2025 600 hedging 400 program 200 0 2024 2025 2026 Capacity contract Commercial and industrial Hedges 44
Slide 45: Alberta portfolio provides solid cash flows for 2024
Alberta portfolio provides solid cash flows for 2024 Alberta portfolio expected to 2024E adjusted EBITDA guidance 2024E Alberta fleet production (GWh) contribute $500 to $600 million or ~45% of 2024 adjusted EBITDA target 10,450 GWh $1,150 to $1,300 $5 per MWh million 2022-2024E fleet production (GW
Slide 46: Key takeaways
Key 1 Rationalize converted gas fleet takeaways Minimize capital spend on converted gas units 2 Optimize hydro portfolio cash flows 3 Optimize value from new flexible gas peaker 4 units 5 Advance grid reliability product opportunities Assess new technologies for post-2025 6 deployment Bighorn, Alber
Slide 47: Generation
Generation Chris Fralick Executive Vice President, Generation
Slide 48: Operational excellence is our advantage
Operational excellence is our advantage Culture of empowerment Exceed customer expectations 112-year operating Efficient asset excellence integration Optimize fleet performance Operational Excellence Foster culture of safety and innovation Fleet Data diversity and innovation $ Safely doing the right
Slide 49: Operational excellence driving fleet-wide improvements
Operational excellence driving fleet-wide improvements Availability1 (%) Generation OM&A1 ($ million) 95% 327 -7% +6% 303 89% 2019-2022 Average 2024-2028 Average 2019-2022 Average 2024-2028 Average Sustaining capex1 ($ million) Generation staffing levels1 (FTEs) 893 -26% 656 142 -25% 107 2019-2022 A
Slide 50: Leading safety and environmental performance
Leading safety and environmental performance Total safety report frequency rate1 (TSRFR) Environmental incidents and spills1 18,000 14.0 7 12.0 12.0 6 15,000 6 Leading indicator Total reports Significant Incidents 10.0 12,000 5 7.3 TSRFR 8.0 9,000 4 5.0 6.0 3 6,000 2.9 2.6 4.0 3 3,000 2.0 2 1 0 0.0
Slide 51: Responsible stewards of legacy assets
Responsible stewards of legacy assets Cowley Ridge Highvale Mine Centralia Mine 2015 2010 2010 2023 2023 2023 51
Slide 52: Key takeaways
Key 1 Safety is our core value takeaways Operational excellence driving sustainable 2 improvements Fleet-wide asset management and capital 3 optimization 4 Efficient integration of new assets 5 Site redevelopment options 6 Responsible stewards of our sites Barrier Lake, Alberta 52
Slide 53: Break
Break Brazeau, Alberta 53
Slide 54: Enhancing value with energy marketing
Enhancing value with energy marketing Kerry O’Reilly Wilks Executive Vice President, Growth and Energy Marketing
Slide 55: Energy marketing fulfils key roles
Energy marketing fulfils key roles Asset Asset Segment optimization growth profitability Manages optimization Provides market insights Track record of generating and commodity risk for to the growth and M&A teams strong segment Ontario and US assets revenues 55
Slide 56: Energy marketing capabilities
Energy marketing capabilities Electricity Natural Gas Emissions NWPP, CAISO, SPP, SWPP, IESO, Markets ISO-NE, NYISO, PJM, MISO, ERCOT Canada and US Canada and US Execution for TransAlta and third-party assets Diverse product Origination and knowledge base structured products provides key Real-time t
Slide 57: EBITDA contribution since 2019
Increasing volatility EBITDA contribution of over $630 across North American markets million since 2019 EBITDA contribution ($ million) Positioned to 183 deliver value in all market conditions 166 103 89 Tightly managed 95 risk profile $135 million 2019 2020 2021 2022 2023 4-year average Adjusted EB
Slide 58: Key takeaways
Key takeaways 1 Provide industry intelligence 2 Optimize and deliver value Generate strong EBITDA and free 3 cash flow Windrise, Alberta 58
Slide 59: Growth Execution
Growth Execution Kerry O’Reilly Wilks Executive Vice President, Growth and Energy Marketing Aron Willis Executive Vice President, Project Delivery and Construction
Slide 60: Executive summary
Executive 1 Disciplined development summary 2 Customer focus 3 Expanding development pipeline 4 Teams in three core geographies 5 Capabilities and key competitive advantages Horizon Hill, Oklahoma 60
Slide 61: Aligning Growth and Energy Marketing
Aligning Growth and Energy Marketing Asset valuation Proprietary trading Aligned global team committed Pipeline management Market Asset optimization to accelerating interpretation value delivery of Specialty products Customer high-quality relationships portfolio through Growth Energy Marketing cross
Slide 62: Our competitive advantage
Our competitive advantage Owner / operator business model Optimization and trading excellence Strong balance sheet Highly credible and Extensive wind platform capable developer Full lifecycle capabilities and risk control Strong customer relationships Demonstrated ESG results 62
Slide 63: TransAlta project development lifecycle
TransAlta project development lifecycle Early-stage Advanced Construction development development Stage 1 Stage 2 Stage 3 Stage 4 Stage 5 Screening Development Definition Execution Closure Growth and Project Delivery Energy and Marketing Construction 63
Slide 64: Growing our fleet
Growing our fleet Clean Electricity Growth Plan progress (MW) 800 MW delivered since 2021 800 3 GW through strategic transactions Clean Electricity Growth Plan and strategic transactions (MW) 1,844 800 1,187 3,831 400 MW in advanced stage 64
Slide 65: Successful pipeline growth
Successful pipeline growth Pipeline expanded by >2.7 GW Development pipeline (MW) Since 2021 On track to achieve +84% 5 GW pipeline By 2025 4,837 New target to deliver 10 GW pipeline By 2028 65
Slide 66: United States
United States Pac NW High demand for energy and capacity Inflation Reduction as utilities prepare for Resource Act provides strong Adequacy Program requirements policy support for continued growth SPP and Corporate PPA ERCOT demand remains strong driven by ESG Large corporate demand within the regio
Slide 67: Canada
Canada Alberta Continued high demand for renewable power purchase agreements Market and pricing dynamics are changing as the generation mix transitions Seeing an increase Saskatchewan in renewable RFPs by provincial utilities Corporate renewable power purchase agreement demand is initiating a policy
Slide 68: Western Australia
Western Australia Western Australia Emerging TransAlta’s two largest customers opportunities in have announced significant mining industry expansions to mining operations from increased Projects in the region offer solid resource demand returns that are fully contracted and growing ESG focus 68
Slide 69: Investment return targets
Investment return targets Required return evaluation criteria Investment size Disciplined capital allocation to enhance shareholder value Contractedness Project returns are assessed based on the unique Customer quality characteristics of each project Future business potential Targeting returns at 10
Slide 70: Development pipeline
Development pipeline Potential Development (excluding prospects): 2,235 – 2,485 MW United States Project MW Technology State Stage FID Monument Road 152 Wind NE 2025 Swan Creek 126 Wind NE 2025 Dos Rios 242 Wind OK 2025 Old Town 185 Wind IL 2025 Cotton Belle 1 96 Solar TX 2025 Quick Draw 174 Wind TX
Slide 71: Development pipeline
Development pipeline Potential Development (excluding prospects): 2,181 – 3,031 MW Canada Project MW Technology Location Stage FID Tempest 100 Wind AB 2024 WaterCharger 180 Battery AB 2024 Pinnacle 1 & 2 44 Gas AB 2024 Riplinger 300 Wind AB 2025 SunHills Solar 170 Solar AB 2025 McNeil Solar 57 Solar
Slide 72: Development pipeline
Development pipeline Potential Development (excluding prospects): 421 MW Australia Project MW Technology Location Stage FID Mt. Keith West 321 Transmission Mt Keith 2023 Network Upgrade Mt. Keith Capacity 94 Gas Mt Keith 2023 Additions Mt. Keith Wind 100 Wind Mt Keith 2024 Port Boodarie Solar 50 Sol
Slide 73: WaterCharger
Largest battery installation in Alberta, providing energy optimization and key reliability service to the WaterCharger Alberta system First Nation equity Location Ghost Hydro Facility partnership Technology Battery Storage Funding secured through Canada’s Smart Renewables Chemistry Lithium-Ion Phosp
Slide 74: Pinnacle
Fast dispatch gas-fired Pinnacle peaking facility, will respond to periods of high demand Acquired gas Location Keephills reciprocating engines at significant discount Fuel Natural Gas Leverages existing infrastructure at Contract Type Merchant Keephills site Size 44 MW Positioning for a more volati
Slide 75: Mt Keith Expansion
Mt Keith Efficient gas-fired generating capacity to meet Expansion customer’s growing demand and to enable increased renewable generation Developing under the Location Mount Keith BHP Nickel West PPA Adding synchronous Fuel Gas condenser capability to improve grid stability Contract Type 13-year PPA
Slide 76: Hancock Prospecting Joint Development
Hancock Strategic development partnership to provide Prospecting reliable supply to Hancock Prospecting Joint Development + Agreement Hancock Prospecting is a large and diversified Australian company and fourth largest iron ore producer in the country Partnership builds on expertise in reliable supp
Slide 77: Key takeaways
Key 1 Disciplined development takeaways 2 Customer focus 3 Pipeline expansion 4 Local expertise and presence 5 Energy marketing competitive advantage Bighorn, Alberta 77
Slide 78: Technology Pathways
Technology Pathways Blain van Melle Executive Vice President, Commercial and Customer Relations
Slide 79: Energy innovation outlook
Energy innovation outlook WaterCharger 180 MW Commercial Commercial lithium-ion hydrogen small modular battery storage hubs and turbines fission reactors 2020 2025 2030 2035 2040 TransAlta fleet Tent Mountain pumped Commercial EV Pilot hydro storage fusion reactors Brazeau pumped storage 79
Slide 80: TransAlta's ecosystem for innovation
TransAlta’s ecosystem for innovation 80
Slide 81: Financial Strategy and Funding Plan
Financial Strategy and Funding Plan Todd Stack Executive Vice President, Finance and Chief Financial Officer
Slide 82: Positioned to enhance shareholder value
Positioned to enhance shareholder value Prudent capital Strong financial Well-positioned allocation maximizes foundation to fund growth shareholder value Strong balance sheet Disciplined target investment returns Simplified corporate structure and credit metrics expected to generate significant free
Slide 83: Strong financial trend
Strong financial trend Free Cash Flow ($ millions) Free Cash Flow1 ($ per share) Debt to EBITDA (times) Full year Full year 3.55 3.26 961 3.9 3.9 850-950 585 2.16 2.6 2.2 2.3 435 1.54 348 1.27 2019 2020 2021 2022 2023E 2019 2020 2021 2022 2023E 2019 2020 2021 2022 2023E Exceptional free cash flow ha
Slide 84: Simplified capital allocation
Simplified capital allocation Since 2021 Maintained strong credit metrics Returned $160 million in dividends Maintain balance sheet Dividend increased by 10% annually Fund the dividend Free Cash Deployed $1.4 billion towards the Clean Flow Electricity Growth Plan Execute on growth Invested $1.4 bill
Slide 85: Growth plan is well funded
Growth plan is well funded Consolidated sources and uses 2024-2028 Growth funding 2024-2028 6,000 5,000 Additional Operating $0.3 cash flow will Debt issued for fund equity 4,000 growth Clean Electricity requirements Growth $3.5 $1.6 for growth Plan billion program $ millions 3,000 $1.6 2,000 Free c
Slide 86: Strategic funding sources
Strategic funding sources Operating free cash flow Corporate and asset level debt Funding Partnerships alternatives Asset recycling opportunities Common equity 86
Slide 87: Prudent capital management
Prudent capital management Share Valuation Credit ratings Dividend S&P BB+ $0.24 +10% CAGR $0.22 Moody’s Ba1 $0.20 DBRS BBB (low) $0.18 $0.17 $0.16 Debt/EBITDA 3.0 - 4.0x target 2019 2020 2021 2022 2023 2024 87
Slide 88: Key takeaways
Key 1 Disciplined capital allocation takeaways 2 Balance sheet is well positioned 3 Growth plan funded with free cash flow Bighorn, Alberta 88
Slide 89: Talent and Culture
Talent and Culture Jane N. Fedoretz Executive Vice-President, People, Culture and Chief Administrative Officer
Slide 90: Shifting our culture by being cultural architects together
Shifting our culture by being cultural architects together Attraction and retention Leadership development and succession Health, wellness and safety Equity, diversity and inclusion ("ED&I") Total rewards and recognition TransAlta story and brand One TransAlta for exceptional results 90
Slide 91: Engagement and ED&I results
Engagement and ED&I results TransAlta’s 2023 employee engagement compared to benchmark1 (%) 75 74 73 ED&I Census Score 72 +6.1% 70 61.5% 67.6% Industry Average 2022 Score (latest data available) TransAlta Utilities, All Industries Canada, Canada 1000+, July 2023 Global July 2023 July 2023 Benchmark
Slide 92: Voluntary turnover
Voluntary turnover Turnover TransAlta’s 15.5% voluntary turnover 12.4% below Canadian 7.7% 9.0% average 7.0% 6.3% 2021 2022 2023 TransAlta Average Turnover 92 Source: Mercer Canada turnover data
Slide 93: Driving a leading talent platform for renewable energy
Driving a leading talent platform for renewable energy Earned Best HR Team Award in Canada Recognized by Best Places to Work Won Alberta Business Award of Awarded 5-Star designation Distinction Diversity, Equity and Inclusion Employer Employees honoured by Electricity Awarded Best Wellness Program C
Slide 94: Key takeaways
Key takeaways 1 Focusing on culture transformation 2 Improving our employee experience 3 Increasing employee engagement 4 Prioritizing employee attraction and retention Garden Plain, Alberta 94
Slide 95: Closing Remarks
Closing Remarks John Kousinioris President and Chief Executive Officer
Slide 96: Strategic priorities to 2028
Strategic 1 Optimize Alberta portfolio priorities 2 Execute expanded Clean Electricity Growth Plan to 2028 Selective expansion of flexible generation 3 and reliability assets Maintain financial strength and capital 4 allocation discipline 5 Define next generation of power solutions 6 Lead in ESG and
Slide 97: Diversified and resilient fleet
Diversified and resilient fleet Clean electricity leader with ESG focus 4.8+ GW growth pipeline Strong financial position Antrim, New Hampshire 97
Slide 98: Questions & Answers
Questions & Answers Visit us at: www.transalta.com Investor_relations@transalta.com 98