Transalta Corporation · TSX:TA
Transalta — Shareholder Meeting (April 2009)
35 slides from Transalta's shareholder meeting presentation, Apr 30, 2009
Slide 1: TransAlta Annual General Meeting
TransAlta Annual General Meeting TransAlta AGM April 30, 2009 powering on 1
Slide 2: Board of Directors: William D. Anderson
Board of Directors William D. Anderson 2
Slide 3: Board of Directors: Stephen L. Baum
Board of Directors Stephen L. Baum 3
Slide 4: Board of Directors: Stanley J. Bright
Board of Directors Stanley J. Bright 4
Slide 5: Board of Directors: Timothy W. Faithfull
Board of Directors Timothy W. Faithfull 5
Slide 6: Board of Directors: Gordon D. Giffin
Board of Directors Gordon D. Giffin 6
Slide 7: Board of Directors: C. Kent Jespersen
Board of Directors C. Kent Jespersen 7
Slide 8: Board of Directors: Michael M. Kanovsky
Board of Directors Michael M. Kanovsky 8
Slide 9: Board of Directors: Gordon S. Lackenbauer
Board of Directors Gordon S. Lackenbauer 9
Slide 10: Board of Directors: Dr. Martha C. Piper
Board of Directors Dr. Martha C. Piper 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: Remarks from Chair of the Board
Remarks from Chair of the Board Donna Soble Kaufman 13
Slide 14: Delivering value to our shareholders
Delivering value to our shareholders Building a strong, sustainable company Three key focus areas: Strategic plan Sustainable business practices Corporate governance Committed to balanced capital allocation An integrated approach to enterprise risk management 14
Slide 15: Recognized for outstanding efforts
Recognized for outstanding efforts Best Investor Relations Program North American DJSI Index - 3rd consecutive year 1st in corporate governance for utilities - 7th consecutive year Spencer Stuart 2009 National Awards in Governance 15
Slide 16: Board of Directors
Board of Directors Trans(lta ——_——— ——_ —_—_
Slide 17: Chief Financial Officer's Report
Chief Financial Officer’s Report Brian Burden 17
Slide 18: 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 19: Outline
Outline Financial strategy 2008 Year in review 2009 First quarter and full year financial outlook Financial strength and balanced capital allocation 19
Slide 20: Financial strategy creates near and long-term shareholder value
Financial strategy creates near and long-term shareholder value Financial strength provides competitive advantages in a long-cycle, capital intensive, cyclical industry Maintain financial strength and flexibility Maintain capital discipline Maintain focus on IRR, ROCE and TSR objectives 20
Slide 21: 2008 Financial Results: A record year
2008 Financial Results: A record year Comparable earnings per share Results 2008 2007 $1.75 Comparable earnings $290 $264 $1.50 $1.46 (MM) $1.31 $1.25 $1.16 Net earnings (MM) $235 $309 $1.00 $0.82 Per share $0.75 $0.66 Comparable Earnings $1.46 $1.31 $0.50 $0.25 Net Earnings $1.18 $1.53 2004 2005 20
Slide 22: 2009 Q1 comparable earnings
2009 Q1 comparable earnings Results Q1 2009 Q1 2008 Net Earnings (MM) $42 $33 Comparable Earnings (MM) $36 $ 99 Comparable earnings per share $0.18 $0.50 Basic and diluted earnings per share $0.21 $0.17 Cash dividends declared per share $0.29 $0.27 Availability (%) 86.4 91.8 Production (GWh) 12,173
Slide 23: Strong balance sheet + stable credit ratios + solid liquidity
Strong balance sheet + stable credit ratios + solid liquidity = long-term financial stability Cash flow to total debt Cash flow to interest 35% 8 30% 7 Min 25% 6 25% 20% 5 4 Min 15% 4x 3 10% 2 5% 1 0% 0 2005 2006 2007 2008 2005 2006 2007 2008 Committed credit lines Debt to total capital 60% $2.5 $BB
Slide 24: Balanced and disciplined capital allocation supports value creation
Balanced and disciplined capital allocation supports value creation through market cycles Priority Direction Dividend Provide shareowners sustainable dividend growth; payout ratio of 60 - 70% of comparable earnings Share Provide shareowners incremental return of capital in absence of value-creating
Slide 25: President and CEO's Report
President and CEO’s Report Steve Snyder 25
Slide 26: In 2008 we achieved record results
In 2008 we achieved record results Record comparable Record cash flow from earnings $1.46 operations $1,038 $1.31 $1.16 (MM) $847 $490 06 07 08 06 07 08 Comparable return on Safety IFR reduced capital employed 9.8% 9.7% 1.96 1.76 1.28 9.0% 06 07 08 06 07 08 26
Slide 27: Capital allocation balances growth with.....
Capital allocation balances growth with….. Project Size Completion Kent Hills 96 MW 12/2008 Blue Trail 66 MW 2009 Summerview II 66 MW 2010 Ardenville 72 MW 2011 Sundance 5 53 MW 2009 Keephills 3 225 MW 2011 Keephills 1&2 46 MW 2011/2012 27
Slide 28: ...returning capital to shareholders
…returning capital to shareholders Capital Allocation (MM) 2008 Growth Investment $541 Dividend $212 Share Buyback $130 Free Cash Flow Allocated $883 28
Slide 29: TransAlta's strategy
TransAlta’s strategy Wholesale generator & marketer in Western Canada and U.S. CANADA Low to moderate risk UNITED STATES Diversified portfolio Financial strength AUSTRALIA Balanced capital allocation Sustainable strategy to deliver long-term yield and capital appreciation 29
Slide 30: Key operating principles
Key operating principles Operational excellence Cost discipline Long-term maintenance planning Safety, safety, safety Environmental leadership Leader in technology Leader in renewables Leader in sustainability 30
Slide 31: Strategy paying off in 2009
Strategy paying off in 2009 Contracting provides earnings security Restoring Alberta Thermal availability a priority Driving for greater efficiency and cost containment Maintaining balance sheet strength 31
Slide 32: Canada – a small part of the climate challenge
Canada – a small part of the climate challenge World CO2 Emissions from the Consumption and Flaring of Fossil Fuels Canada 2% U.S. & Mexico Asia & Oceania 22% 38% Central and South America 4% Africa Europe 4% 16% Middle East Eurasia 5% 9% Source: Energy Information Administration (EIA), 2006 32
Slide 33: Coal and fossil fuels generate 60% of world's electricity
Coal and fossil fuels generate 60% of world’s electricity Top 20 Industrialized Nations Net Generation by Type Billion Kilowatthours 4,500 4,000 Conventional Thermal Hydro Nuclear Renewable 3,500 3,000 2,500 2,000 1,500 1,000 500 0 C s s R m Ta lia a Ne Tur n Fr ia Ki any Ko a Au esia n So Can o M i
Slide 34: Project Pioneer – leading the world in CCS
Project Pioneer – leading the world in CCS We are advancing Canada’s first large-scale project to retrofit a power plant to capture and store 1M tonnes of CO2 by 2013 Carbon Capture and Storage CO2 returned Energy Input (oil/gas) Energy Input (coal) 34
Slide 35: Dedicated to building a sustainable company
Dedicated to building a sustainable company... ..and powering future generations 35