Slide 1: Investor Presentation
Investor Presentation March 1 2025
Slide 2: Forward-looking statements and non-IFRS measures
Forward-looking statements and non-IFRS measures This presentation includes "forward-looking information," within the meaning of differ materially from those predicted. Factors that may adversely impact what Standards (“IFRS”) and therefore may not be comparable to similar measures applicable Canadi
Slide 3: TransAlta at a glance
TransAlta at a glance ~9,000 MW Diversified portfolio 88 generating facilities in Canada, United States and Australia $8.5 billion 114 years Enterprise value1 Generation experience Strong balance sheet Foundation of our and capital discipline focused strategy ~$500 million 2025 expected free cash fl
Slide 4: Well diversified portfolio of high-quality assets
Hydro Gas Wind and solar Energy Development marketing pipeline and capabilities Well diversified portfolio of high-quality assets Stable contracted base with Alberta merchant upside 4
Slide 5: Fleet Overview
Fleet Overview Wind, Solar and Storage 36 Facilities Hydro 25 Facilities Natural Gas 26 Facilities Coal 1 Facility Technology: Wind Solar Hydro Battery Natural Gas Coal 5
Slide 6: Strategic position strengthened
Free Cash Flow1 Adjusted EBITDA1 Strategic Free Cash Flow1 increased by position +59% +35% $210 Million strengthened Adjusted EBITDA1 since 2020 increased by $330 Million 2020 2024 2020 2024 Contractedness1,2 increased by Contractedness1,2 Emissions reductions3 Renewable capacity1,2 (MW) (Millions t
Slide 7: Strategic priorities
Strategic 1 Optimize Alberta portfolio priorities 2 Execute Growth Plan Realize the value of legacy generating 3 facilities Maintain financial strength and capital 4 discipline 5 Define next generation of power solutions 6 Lead in ESG and market policy development Keephills, Alberta 7
Slide 8: Portfolio is highly hedged and contracted in 2025
Portfolio is highly hedged and contracted in 2025 67% Of Alberta fleet revenue contracted or hedged ~75% of generation 73% revenue2 is Of US fleet revenue expected to contracted or hedged come from contracted 86% assets and Of Canadian fleet 1 hedging revenue contracted position 100% Of Australian f
Slide 9: Heartland portfolio provides significant upside with reliability and contracted assets
Heartland portfolio provides significant 5.4x adjusted EBITDA multiple1 upside with reliability and contracted assets Contracted Gross Owned ~$270 per kW3, Facility Type Capacity Capacity Capacity (MW) (MW) significantly Muskeg River Cogen 85% 202 202 lower than new build Scotford Cogen 54% 195 195
Slide 10: Centralia
Valuable redevelopment Centralia opportunities for existing infrastructure and land base Attractive risk-adjusted Location Centralia, WA returns and build multiples Gas, Wind, Solar, Potential Fuel Battery, New Technology Potential Long-term Highly contracted cash flow Contract Type Size 500-1,000 M
Slide 11: Pursuing multiple options for Centralia redevelopment
Pursuing multiple options for Centralia redevelopment Operating unit Transmission interconnection Natural gas Next generation technology potential site Skookumchuck Reservoir Water rights Temperate climate and existing cooling ponds Skilled workforce Centralia, availability Washington Renewables pot
Slide 12: Three phased approach to data centre development
TransAlta has entered Three phased approach to Keephills into the interconnection queue data centre development Phase 1 Socialization Engage potential customers and gauge interest Phase 2 Technical Development of technical Current specifications and advancement phase of sites Phase 3 Commercializati
Slide 13: TransAlta offers attractive locations for data centres
TransAlta offers attractive locations for data centres Wabamum Under 25ms latency1 Lake Area from Calgary Reliable Toronto Keephills operating units / and 41.83ms Highvale speed to market Sundance Transmission interconnection Wabamun Lake Seattle Calgary 20.56ms Boston 73.86ms Natural gas Sundance M
Slide 14: Our competitive advantage
Our competitive advantage Owner / operational excellence Optimization and trading excellence Strong balance sheet Customer Local presence Focus Full life cycle capabilities and risk control Strong customer relationships Demonstrated ESG results 14
Slide 15: 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 Red
Slide 16: 2024 performance
2024 performance Horseshoe, Alberta 16
Slide 17: 2024 delivered solid results in an evolving landscape
2024 delivered Transaction solid results in an evolving landscape At A Glance Results and Strategic initiatives financial position Achievements Adjusted EBITDA1 of $1.25 billion Closed acquisition of Heartland Pursuing Centralia redevelopment Generation adding ~1.7 GW of assets opportunities FCF1 of
Slide 18: TransAlta segmented results
TransAlta segmented results Year and three months ended December 31, 2024 ($millions) 2024 2023 Adjusted EBITDA1 Q4 2024 Q4 2023 Strong 316 459 Hydro 57 56 operating 316 257 Wind and Solar 95 82 and 535 801 Gas 116 141 financial 91 122 Energy Transition 28 26 performance 131 109 Energy Marketing 27
Slide 19: Realized significant premiums in Alberta
Realized significant premiums in Alberta 2024 full year prices 120 100 $109 174% realized premium to spot price 1 Price ($/MWh) $84 80 144% Hydro premium to spot price 2 60 $63 40 137% Gas premium to spot price 2 20 73% Ancillary services to spot price 0 Hydro Gas Ancillary services Wind 2024 Q4 pri
Slide 20: Hydro ancillary services provide stability
Hydro ancillary services provide stability Alberta hydro fleet volumes (GWh) 1,000 900 800 Volume (GWh) 700 600 +14% 500 Ancillary volume 400 increase from 2023 to 2024 300 200 Q1 2021 Q2 2021 Q3 2021 Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Q2 2023 Q3 2023 Q4 2023 Q1 2024 Q2 2024 Q3 2024 Q4
Slide 21: 2025 outlook
2025 outlook Windrise, Alberta 21
Slide 22: 2025 guidance
2025 guidance ($ millions) 2025 Outlook Adjusted EBITDA1 1,150 to 1,250 FCF1 450 to 550 Reflects FCF/share ($/share)1 $1.51 to $1.85 strong Energy Marketing Gross Margin 110 to 130 hedged position and Sustaining Capital 145 to 165 contracted cash flows Market 2025 Outlook Alberta Spot 40 to 60 ($/MW
Slide 23: Strong hedge position in Alberta
Strong hedge position in Alberta $80 5,000 Hedged power Price ($/MWh) Volume (GWh) 4,000 $60 prices above 3,000 $40 forward curve 2,000 $20 1,000 $- - Q1 2025 Q2 2025 Q3 2025 Q4 2025 Full Year 2026 1 Volume Forward price Average hedged power price $1 per MWh change in spot Q1 2025 Q2 2025 Q3 2025 Q4
Slide 24: 2025 in-year priorities
2025 in-year priorities Windrise, Alberta 24
Slide 25: 2025 priorities
2025 priorities Safety, people and culture Financial and operational Improve leading and lagging safety performance Deliver adjusted EBITDA1 of $1.15 - $1.25 billion Deliver FCF1 of $450 - $550 million Delivering Advance leadership and talent development operational Maintain strong balance sheet and
Slide 26: Alberta market evolution
Alberta market evolution Big Horn, Alberta 26
Slide 27: 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 28: Hedging and optimization increases our advantage
Hedging and optimization increases our advantage Ancillary services leader 114-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 29: Alberta regulatory change timeline
Alberta regulatory change timeline Restructured Energy Market Renewables (“REM”) industry REM design REM pause consultation and approval implementation implemented and design process Aug 2023 Feb 2024 Jul 1, 2024 2025 2026 Nov 30, 2027 Renewables Interim Interim pause ended Regulations in regulation
Slide 30: Alberta interim regulations
Alberta interim regulations July 1, 2024 to November 30, 2027 1 Icon Market power mitigation regulation 2 Icon Here Supply cushion regulation Interim regulations Creates offer limit for only gas-fired resources Requires the AESO to direct long lead time not expected assets to operate at minimum stab
Slide 31: Restructured Energy Market update
Restructured Energy Market update Icon Icon Here State of play Here TransAlta’s positioning Market requires Mandatory day-ahead market Changing energy landscape requires a long- low-cost Strategic energy bidding mechanisms term focus flexible Review of the current price ceiling and floor Market rede
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 and hedging Hedging and optimization Grid rel
Slide 33: Major supply shift continues
Major supply shift continues Alberta installed capacity and peak load (MW)1 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 Storag
Slide 34: Prices expected to soften mid-decade with supply
Prices expected to soften mid-decade with supply Annual average power price forecast ($ per MWh)1 162 134 102 63 47 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 Actual Forecast Prices to rebound later in the decade 34 1 Forecast is as of and sourced from TransAlta’s 2023 Investor Day prese
Slide 35: Intraday volatility of renewable supply
Intraday volatility of renewable supply Increasing renewable Renewable generation - maximum hourly change (MW) 1 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
Slide 36: Wind penetration increases volatility in price
Wind penetration increases volatility in price September 2023 wind generation and power price volatility1 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 Power
Slide 37: 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)1 required to meet Alberta demand and 9,640 7,815 reliability Province loses 5.5 GW of capacity on low Shortfall renewable- -6,735 -358 0 resource 1,825 -454 -268 days1 AIES Ge
Slide 38: Enhancing Value with Energy Marketing
Enhancing Value with Energy Marketing Le Nordias, Quebec 38
Slide 39: 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 40: 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 41: Energy Marketing has delivered $700 million of adjusted EBITDA since 2020
Increasing volatility across North Energy Marketing has delivered $700 American markets creates million of adjusted EBITDA1 since 2020 opportunities Adjusted EBITDA1 contribution ($ million) Positioned to deliver value in all 183 market conditions 166 131 109 103 Tightly managed risk profile $140 mi
Slide 42: Financial strategy and plan
Financial strategy and plan Brazeau, Alberta 42
Slide 43: Prudent capital management
Prudent capital management Credit ratings Dividend S&P BB+ ~10% CAGR2 $0.26 Moody’s Ba1 $0.24 $0.22 DBRS BBB (low) $0.20 $0.18 $0.17 Adjusted Net 3.0 - 4.0x Debt/Adjusted EBITDA target 2020 2021 2022 2023 2024 2025 1 Adjusted net debt and adjusted EBITDA are non-IFRS measures, see the forward-lookin
Slide 44: Capital allocation maximizes shareholder value
Capital allocation maximizes shareholder value Maintain strong credit metrics Dividend increased by 8%; payout ratio equates to 15% of expected 2025 FCF1 Maintain balance sheet Realize value from legacy thermal sites Fund the dividend Free Cash Flow1 Invest in strategic M&A Execute on growth opportu
Slide 45: Our Value Proposition
Safe and reliable operator Diversified and increasingly contracted portfolio Our Value Clean electricity leader Proposition High potential legacy energy campuses Positioned for growth Financial strength and flexibility Antrim, New Hampshire 45