Slide 1: First Quarter 2019 Results
TransAlta Corporation First Quarter 2019 Results Tuesday, May 14, 2019 1
Slide 2: Forward Looking Statements
Forward Looking Statements This presentation includes forward-looking statements or information (collectively referred to herein as “forward-looking statements”) within the meaning of applicable securities legislation. All forward-looking statements are based on our beliefs as well as assumptions ba
Slide 3: Agenda
Agenda CEO Update Growth Projects First Quarter 2019 Highlights Capital Allocation Questions and Answers 3
Slide 4: Financial Highlights – Three Months Ended March 31, 2019
Financial Highlights – Three Months Ended March 31, 2019 Comparable EBITDA(1) FFO(1) FCF(1) ($ millions) ($ millions) ($ millions) $236 $221 $161 $169 $95 $81 2018 2019 2018 2019 2018 2019 • Strong operational and financial performance • Accelerating coal to gas conversions and evaluating hybrid opt
Slide 5: Current Development Projects For TA and RNW
Current Development Projects For TA and RNW Big Level - 90 MW Antrim - 29 MW Pennsylvania project New Hampshire project ⚫ 15-year PPA with Microsoft ⚫ 20-year PPAs with Partners HealthCare ⚫ Capital cost of ~US$175 million (75%) and New Hampshire Electric ⚫ Commercial operation expected in Q3 Cooper
Slide 6: Growth Projects EBITDA
Growth Projects EBITDA EBITDA(1) GENERATED BY NEW ASSETS ($ MILLIONS) $70 Total capital investment $60 for announced growth projects is ~$850 million $50 TransAlta EBITDA excluding PPA Capacity Payment $40 Pipeline² Skookumchuck* Windrise* $30 Energy Big Level/Antrim Obligation Capacity Payment $20
Slide 7: First Quarter 2019 Highlights
First Quarter 2019 Highlights 3 Months Ended March 31 (in $CAD millions) 2019 2018 (1,2) Comparable EBITDA $221 $236 FFO(1) $169 $161 FCF(1) $95 $81 Adjusted Availability(3) 89.4% 93.9% FIRST QUARTER 2019 EBITDA ($MILLIONS) (1) Excludes the $157 million received during the first quarter of 2018 rela
Slide 8: Cash Flow by Business Bridge
Cash Flow by Business Bridge ⚫ US Coal lower due to one-time event caused by one of the units being unavailable during unprecedented market conditions ⚫ Canadian Gas lower as expected due to the Mississauga contract ending Dec 31, 2018 and lower scheduled payments from the Poplar Creek finance lease
Slide 9: Alberta Electricity Prices
Alberta Electricity Prices ALBERTA POOL PRICE AND FORWARD CURVE ($/MWH) $80 $69 $70 $60 $53 $50 $50 $40 $35 $30 $20 $10 $- Q1/17 Q2/17 Q3/17 Q4/17 Q1/18 Q2/18 Q3/18 Q4/18 Q1/19 Bal 2020 2019 Notes: Forward curve as at May 2, 2019 9
Slide 10: EBITDA Currently Generated by TransAlta Hydro
EBITDA Currently Generated by TransAlta Hydro Q1 2019 HYDRO BRIDGE ($ MILLIONS) Hydro assets currently generating ~$70 million of EBITDA prior to payment of obligations to the Balancing Pool TransAlta EBITDA excluding PPA Capacity Payment Ancillary Obligation Energy Obligation Capacity Payment Assum
Slide 11: Executing on Strategy
Executing on Strategy Coal to Gas Conversions Hydro Grow TransAlta Renewables ⚫ Deploying capital in existing ⚫ Strategic partnership with ⚫ Continue to diversify and assets to extend life and Brookfield adds extensive grow contracted asset base increase capacity operating expertise ⚫ Develop existi
Slide 12: Question and Answer
Question and Answer ¥ « Tra nsAl ta pachiiner