Transalta Corporation · TSX:TA

Transalta — Shareholder Meeting (2007)

38 slides from Transalta's shareholder meeting presentation, 2007

1. Slide 1: Annual and Special Meeting 2007

   Annual and Special Meeting 2007

2. Slide 2: Board of Directors

   Board of Directors William D. Anderson

3. Slide 3: Board of Directors

   Board of Directors Stanley J. Bright

4. Slide 4: Board of Directors

   Board of Directors Timothy W. Faithfull

5. Slide 5: Board of Directors

   Board of Directors Gordon D. Giffin

6. Slide 6: Board of Directors

   Board of Directors C. Kent Jespersen

7. Slide 7: Board of Directors

   Board of Directors Michael M. Kanovsky

8. Slide 8: Board of Directors

   Board of Directors Gordon S. Lackenbauer

9. Slide 9: Board of Directors

   Board of Directors Dr. Martha C. Piper

10. Slide 10: Board of Directors

    Board of Directors Luis Vazquez Senties

11. Slide 11: Board of Directors

    Board of Directors Stephen G. Snyder

12. Slide 12: Board of Directors

    Board of Directors Donna Soble Kaufman

13. Slide 13: Annual and Special Meeting 2007

    Annual and Special Meeting 2007

14. Slide 14: Chief Financial Officer's Report

    Chief Financial Officer’s Report Brian Burden

15. Slide 15: 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

16. Slide 16: Outline

    Outline • 2006 Financial Results • 2007 Financial and Operating Objectives • Financing Growth

17. Slide 17: 2006 financial results

    2006 financial results Strong availability, increased gross margin, lower OM&A and income tax expense offset by Centralia one-time events Results 2006 2005 2004 Comparable earnings (MM) $233.8 $161.3 $127.1 Net earnings (MM) $44.91 $186.32 $170 Per share Comparable earnings $1.16 $0.82 $0.66 Net ear

18. Slide 18: Strong credit ratios indicative of commitment to maintaining investment grade

    Strong credit ratios indicative of commitment to maintaining investment grade Financial ratios Target 2006 2005 2004 Cash flow to interest (x) >4.2 5.5 4.7 4.3 Cash flow to total debt (%) >28 26.2 23.0 19.1 Debt to total capital (%) <48 40.9 43.9 46.4

19. Slide 19: Financial objectives and measures

    Financial objectives and measures Objectives Measures 2007 Goals 2006 2005 Deliver long-term TSR 10% 9% 48% shareholder return ROCE1 ~10% 8.3%2 7.1% Increase comparable Comparable EPS 6 - 10% $1.16 $0.82 earnings per share Increase operating cash flow Operating cash flow $650 - $750 MM $675 MM3 $620

20. Slide 20: Operating objectives and measures

    Operating objectives and measures Objectives Measures 2007 Goals 2006 2005 Maintain targeted Fleet availability 90% 89%1 88.6% availability Contracted Contract plant output output > one >75% 2 81% 82% year Increase gross margin Margin Increase $1.5 B $1.4 B Make sustaining Sustaining $320 - $345 MM

21. Slide 21: Q1 2007 highlights

    Q1 2007 highlights Variance primarily due to normal unplanned outages and higher planned outages at Alberta Thermal, and accelerated test burns of PRB coal Results Q1’07 Q1’06 % Variance Comparable earnings (MM) $66.0 $75.4 (13) Net earnings (MM) $66.0 $69.21 (5) Per share Comparable earnings $0.33

22. Slide 22: Short term increase in sustaining capex

    Short term increase in sustaining capex Increase in sustaining capital supports Alberta mine activities and Centralia fuel blend modifications. Growth capex includes Sun 4 uprate, Kent Hills wind project and Keephills 3. $MM 2006 2007 Sustaining $214 $320 - $345 Routine capital $100 $100 - $105 Mine

23. Slide 23: Disciplined capital allocation process

    Disciplined capital allocation process 1. Strategic fit • Commercial and operational criteria • Merchant vs. contracted • Brownfield, acquisition and greenfield • Decisions benchmarked 2. Internal rate of return vs. 10% TSR and 10% • Project specific hurdle rates ROCE goals • Unlevered IRR must be g

24. Slide 24: 2007 - What investors can expect

    2007 - What investors can expect • Build on strong platform established over last three years • Drive strong operating cash flow from existing assets to support investment grade financial ratios and achieve near- term financial and commercial goals • Maximize shareholder value through accretive inve

25. Slide 25: Chief Executive Officer's Report

    Chief Executive Officer’s Report Steve Snyder

26. Slide 26: Our Goals

    Return on Total Our Capital Shareholder Employed Return Goals 10% plus 10% plus

27. Slide 27: State of the Industry

    State of the Industry Strong economic growth • Increased demand • Reserve margins Uncertainties • Regulatory landscape • Hybrid markets • Price and availability of fuels • Replacement costs for plants • The environment

28. Slide 28: We're ready

    We’re ready • Increased investment in renewables • Emission trades and offsets • Canadian Clean Power Coalition • Public policy discussions • Carbon Capture and Storage Task Force

29. Slide 29: Environmental Leadership

    Environmental Leadership Dow Jones. Sustainability Indexes Member 2006/07 TransAlta

30. Slide 30: Market Opportunities

    Market Opportunities CAPACITY GENERATION FACILITIES OWNED Coal-fired plants 4,887 MW Coal-fired plants 278 MW (IN DEVELOPMENT) Hydro plants 807 MW Gas-fired plants 2,464 MW Wind-powered plants 152 MW Wind-powered plant 75 MW (IN DEVELOPMENT) Geothermal plants 163 MW Corporate offices Energy Marketin

31. Slide 31: Alberta

    HAWAI © AUSTRALIA 300 MW ao CANADA 5,932 MW UNITED STATES 2,063 MW MEXICO 511 MW TransAlta

32. Slide 32: Ontario

    Bo ° of CANADA 5,932 MW a 4 UNITED STATES 2,063 MW ee $$ 33 33 3 ° ° HAWAII : ° MEXICO “sow 511 MW oo : a TransAlta

33. Slide 33: Mexico

    CANADA 5,932 MW . Sen oe 9 a ve UNITED STATES 2,083 MW % HAWAIL © © cy o AUSTRALIA MENS 300 MW 511 MW cy a o TransAlta

34. Slide 34: Australia

    HAWAIL @ AUSTRALIA 300 MW id a avo Sa CANADA XN 5,932 MW ha eo ° ve UNITED STATES 2,083 MW ° 6 MEXICO 511 MW r) TransAlta

35. Slide 35: United States

    United States

36. Slide 36: A sound and sustainable business model

    A sound and sustainable business model Financial Strengths • Strong balance sheet, stable credit rating Operations • Higher availability, reduced expenses Life Cycle Planning • Careful spending, higher performance levels Commercial Development and Marketing • Assessing portfolio and markets, growing

37. Slide 37: Executive Team

    Executive Team

38. Slide 38: Annual and Special Meeting 2007

    Annual and Special Meeting 2007

TransAlta — Shareholder Meeting (2007) on 6ix