Slide 1: TransAlta Corporation Q3 2003 Investor Update
TransAlta Corporation Q3 2003 Investor Update October 2003
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. These statements are subject to a number of risks and uncertainties that may cause actual results to differ
Slide 3: Q3 2003 Highlights
Q3 2003 Highlights • Earned $0.62 per share • Cash flow of $147 million • Commissioned the Chihuahua III power plant • Renewed credit facility
Slide 4: Financial results
Financial results ($ millions) 3 months ended Sept. 30 2003 Change Revenues $ 630 +40% Operating income $ 210 +70% Earnings from continuing $ 118 +68% operations* *Net of preferred securities distributions
Slide 5: Financial results (continued)
Financial results (continued) 3 months ended Sept. 30 2003 2002 EPS: Reported $ 0.62 $ 0.42 Gain $ (0.76) $ - Turbine write down $ 0.29 $ - Tax recovery $ - $ (0.07) Total $ 0.15 $ 0.35 Highlights • Maintenance - 10¢ • Hydro - 3¢ • CE Gen / new starts + 4¢ / - 4¢ • Dilution - 4¢ • Wab III & other -
Slide 6: Maintenance
Maintenance Strategy: planned versus forced to improve effectiveness and reduce outages ($ millions) 3 months ended Sept. 30 2003 2002 Capitalized $ 7 $ 18 Expensed $ 27 $ 6 Total $ 34 $ 24 Units KH 1 Sun 3 Sun 3 Sun 4 Wab 4
Slide 7: Going forward
Going forward Be cos im ize Grow ain tain Focus effecti t Max intellig M g on ve asset s ently stron e people a la nc b sheet
Slide 8: Portfolio composition
Portfolio composition Last few years have focused on capacity growth Expected MW ROE 4000 3500 3000 2500 2000 1500 1000 500 0 0 to 6 to 11 to 16 to 21 to 26 to 31 to 36 to 40+ 5 10 15 20 25 30 35 40 Age of plant
Slide 9: Consolidation phase
Consolidation phase Growth • Genesee 3: 2005 • Wind: 50 - 100 MW / year Consolidation • Asset by asset review • Further strengthen B/S • Invest in IT and maintenance
Slide 10: Operations
Operations Availability • Target 90% overall • Success at Centralia • Exceed Alberta PPA targets Maintenance plan • Become market responsive • Optimize $/MW (operating + CAPEX) • Alberta PPAs >$ than historical spend
Slide 11: Appendix
Appendix
Slide 12: Financial results
Financial results ($ millions) YTD Sept. 30 2003 Change Revenues $ 1787 +48% Operating income $ 433 +55% Earnings from continuing operations* $ 190 +48% EPS $ 1.04 -30% Cash flow from operating activities $ 591 +138% *Net of preferred securities distributions