Slide 1: TransAlta Q1 results and conference call
TransAlta Q1 results and conference call April 23,2013
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. All forward looking statements are based on our beliefs and assumptions based on information available at t
Slide 3: Outline
Outline Summary of Results Financial Review 2013 Outlook Questions & Answers 3
Slide 4: Summary of Results
Summary of Results. Dawn Farrell 4
Slide 5: Key Messages
Key Messages Increased comparable gross margin and EBITDA Comparable FFO in line with Q1 2012 Energy Trading in-line with expectations Operationally sound quarter Assumed operations and management control of Highvale mine New Richmond wind commissioned, Solomon Q2 Puget contract progre
Slide 6: Strong Availability
Strong Availability Q1 2013 Q1 2012 Fleet Availability 91.5% 91.7% Plant Availability Q1 2013 Q1 2012 Sundance 83.2% 93.9% Keephills 1 & 2 77.7% 58.5% Keephills 3 95.0% 92.6% Genesee 3 97.6% 81.7% Sheerness 97.5% 99.2% Centralia 98.3% 98.6% Gas 97.7% 96.5% Renewables 93.9% 95.9% 6
Slide 7: Declining Boiler Leaks
Declining Boiler Leaks Boiler leaks at Sundance and Keephills # of leaks 7
Slide 8: 2013 YTD Rolling Average Pool Price (RAPP)
2013 YTD Rolling Average Pool Price (RAPP) $/MWh 8
Slide 9: Alberta and Pac NW Market Update
Alberta and Pac NW Market Update $/MWh Alberta Price Outlook Alberta Strong Q1 power prices due to tighter supply demand balance 2013 Outlook: Supply additions expected to outweigh relatively healthy power demand despite partial recovery in the natural gas price Source: NGX PacNW Price Outlook U
Slide 10: 2012 Achievements: Positioning Centralia for the Future
2012 Achievements: Positioning Centralia for the Future Entered into agreement with Puget Sound Energy (PSE) Secures cash flows needed for the plant to run to the end of its Centralia Gross Margin Sensitivity 2013 - 2016 Average Annual Gross Margin ($M) life Significantly reduces merchant expo
Slide 11: Highly contracted portfolio with upside potential
Highly contracted portfolio with upside potential Hedge targets increased to support revenue certainty Total Portfolio Contractedness1 MW 7,000 90% 78% 76% 76% 2013 Contracted Prices 6,000 AB ~ $60/ MWh 5,000 PACNW ~ $40/ MWh 4,000 3,000 2014 Contracted Prices 2,000 AB ~ $55/ MWh 1,000 PACNW ~ $45/
Slide 12: Financial Review
Financial Review. Brett Gellner 12
Slide 13: Solid financial performance: Comparable Gross Margin
Solid financial performance Comparable Gross Margin1 $M 3 months ended March 31, 2013 Comparable Gross Margin increased $5 million compared to Q1 2012 Lower planned outages, higher hydro margins Partially offset by: lower contract pricing at Centralia, higher Alberta coal PPA penalties 1 Gas c
Slide 14: Comparable EBITDA & Funds from Operations (FFO)
Comparable EBITDA & Funds from Operations (FFO) Comparable EBITDA FFO $M $267 $M $252 $189 $192 $15 million increase in quarterly comparable EBITDA primarily due to: Strong gross margins from the Generation segment Lower OM&A costs Contributions from Solomon asset Comparable FFO consistent
Slide 15: Significant decrease in OM&A
Significant decrease in OM&A $13 million decrease in OM&A compared to same period last year $M $140 $128 $7 $120 $115 $22 $7 $100 $16 $80 $60 $99 $92 $40 $20 $0 Q1 2012 Q1 2013 Generation Corporate Trading 15
Slide 16: Capital Spending
Capital Spending Capital spend returning to normalized run rate in 2013 $M $496 $57 $325 - $385 $357 $439 $38 $40 $319 $295-$335 Growth capital in 2013 estimated to be in the range of $145 - $170 million 16
Slide 17: Outlook
Outlook. Dawn Farrell 17
Slide 18: 2013 Objectives
2013 Objectives Strategic objectives Financial objectives Deliver one greenfield project from MidAmerican Targetting $800 – $900 million in FFO partnership Strengthen balance sheet and maintain investment Add $40 - $60 million of EBITDA from growth grade ratings Energy Trading to $40 - $60
Slide 19: Future Growth Opportunity Set
Future Growth Opportunity Set Over 18,000 MW of Market opportunity requiring potential investment of $36 billion over the next 10 years MW TransAlta is well positioned to capture significant growth opportunities in our core markets 19
Slide 20: Questions, Answers
Q&A. Questions, Answers