Slide 1: Year End and Q4 2024 Results
Year End and Q4 2024 Results February 1 20, 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 applicable Canadian securities laws, and "forward-looking statements," within the meaning of applicable United States securities laws, including the Private Securities Lit
Slide 3: John Kousinioris, President and CEO
John Kousinioris President and Chief Executive Officer
Slide 4: 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 5: 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 ~$270 per kW3, Facility Type Capacity Capacity Capacity (MW) (MW) significantly Muskeg River Cogen 85% 202 202 lower than new build Scotford Cogen 54% 195 195
Slide 6: Centralia
Valuable redevelopment Centralia opportunities for existing infrastructure and land base Attractive risk-adjusted Location Centralia, WA returns and build multiples Gas, Wind, Solar, Potential Fuel Battery, New Technology Potential Long-term Highly contracted cash flow Contract Type Size 500-1,000 M
Slide 7: Three phased approach to data centre development
TransAlta has entered Three phased approach to Keephills into the interconnection queue data centre development Phase 1 Socialization Engage potential customers and gauge interest Phase 2 Technical Development of technical Current specifications and advancement phase of sites Phase 3 Commercializati
Slide 8: Joel Hunter, EVP Finance and CFO
Replace with JH image when available; Anna has booked headshots Joel Hunter Executive Vice President, Finance and Chief Financial Officer
Slide 9: TransAlta segmented results
TransAlta segmented results Year and three months ended December 31, 2024 ($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 10: 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 $63 40 137% Gas premium to spot price 2 20 73% Ancillary services to spot price 0 Hydro Gas Ancillary services Wind 2024 Q4 pri
Slide 11: 2025 guidance
2025 guidance ($ 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 12: Portfolio is highly hedged and contracted in 2025
Portfolio is highly hedged and ~75% of contracted in 2025 generation 67% revenue2 is Of Alberta fleet expected to revenue contracted or hedged come from contracted 73% assets and Of US fleet revenue hedging contracted or hedged position 86% Of Canadian fleet 1 revenue contracted 52% of total fleet c
Slide 13: 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 14: 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 15: 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 16: 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 16
Slide 17: Questions and answers
Questions and answers Visit us at: www.transalta.com investor_relations@transalta.com 17