Transalta Corporation · TSX:TA
Transalta — Investor Presentation (January 2021)
19 slides from Transalta's investor presentation, January 2021
Slide 1: TransAlta Corporation Investor Presentation
TransAlta Corporation Investor Presentation January 2021 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: Dawn Farrell, Chief Executive Officer
Dawn Farrell Chief Executive Officer 3
Slide 4: Todd Stack, Chief Financial Officer
Todd Stack Chief Financial Officer 4
Slide 5: TransAlta Summary
TransAlta Summary Corporate Snapshot Enterprise Value1 $9.5 Billion Market Capitalization1 $3.0 Billion Dividend Yield1 1.7% 2020E EBITDA (guidance) $925 - $1,000M 2020E FCF2 (guidance) $325M - $375MCDP CDP Score A – (industry leader) TECHNOLOGY DIVERSITY IN 20213 TECHNOLOGY DIVERSITY IN 20253 13% 1
Slide 6: Investment in TransAlta Renewables
Investment in TransAlta Renewables ~$150 million in dividends Converted Contracted Contracted Hydro Centralia & Energy Alberta Renewable On-site Assets Other Marketing Assets Assets Generation Portfolio run by a single leadership team Provides operational and financial synergies driving competitive
Slide 7: Prudent Capital Allocation and Dividend Policy
Prudent Capital Allocation and Dividend Policy Deconsolidated FFO 25 – 35% 6 – 8% 8 – 10% 10 – 15% 30 – 50% Sustaining & • Clean energy Preferred Share Common Share investments Productivity Amortizing Debt • Debt Reduction Dividends Dividends Capital • Share Buyback Dividend policy of 10% - 15% of T
Slide 8: 2020 Q3 Highlights & Advancements
2020 Q3 Highlights & Advancements ▪ FCF of $106 million or $0.39 per share in line with 2019 ▪ Year-to-date FCF of $306 million or $1.11 per share, a 22% increase Q3 Results (1) ▪ Diversified portfolio enabling resilient cash flow generation ▪ Strong performance of trading and optimization capabilit
Slide 9: Strong Cash Flow Generation
Strong Cash Flow Generation FCF ($MILLIONS)(1) LIQUIDITY POSITION ($BILLIONS) $450 $2.0 2020 Guidance $325 - $375 million $0.3 $0.3 $379 $1.5 $0.4 $367 $0.3 $300 $328 $1.4 $1.4 $306 $1.3 $1.3 $257 YTD $1.0 $0.1 $150 $0.9 $0.5 $- $- 2016 2017 2018 2019 2020E 2016 2017 2018 2019 YTD 2020 Available Cre
Slide 10: Execution of Clean Energy Investment Plan (1 of 2)
Execution of Clean Energy Investment Plan (1 of 2) WindCharger Sundance 6 Conversion Sundance 5 Repowering 10 MW 401 MW 730 MW ▪ Powered by Summerview II ▪ Construction completed, ▪ Board-approved with wind farm – truly renewable currently testing and expected COD of Q4 2023 battery energy storage c
Slide 11: Execution of Clean Energy Investment Plan (2 of 2)
Execution of Clean Energy Investment Plan (2 of 2) Skookumchuck Wind Windrise Wind Kaybob Cogen 67 MW 207 MW 40 MW ▪ COD reached Nov 2020 ▪ Expected COD: H2 2021 ▪ Expected COD: H1 2022 ▪ ~45% complete ▪ Purchased reciprocating ▪ Receiving wind turbines engine generator, generator on site as of mid
Slide 12: Robust Development Pipeline to Supply Customer Needs
Robust Development Pipeline to Supply Customer Needs ▪ Significant number of growth projects in Projects Owned Location COD Range MW advanced or early staged development Advanced-Stage Projects in Development Garden Plain Wind 130 AB 2022 – 2023 Tempest Wind 70 AB 2023 – 2024 Horizon Hill Wind 200 O
Slide 13: Alberta Conversion to Gas and Off Coal by End of 2021
Alberta Conversion to Gas and Off Coal by End of 2021 Sun KPH KPH Highvale Gas-firing Sun 6 2 3 Mine Closure Sun 4 + KPH 1 5 2020 2021 2022 2023 Boiler Conversion Repowered Combined Cycle Retirement Gas-Fire Only ▪ Mining operations at Highvale Mine will end by Dec. 31, 2021 ▪ Alberta thermal fleet
Slide 14: Sustainability Targets
Sustainability Targets Environmental Goals Social Goals Governance Goals • Minimize environmental • Strengthen gender incidents equality: equal pay for • Transition to clean women; by 2030 50% energy by 2025: • Reclaim land utilized for Conversion and repowering women on the Board mining in both Alb
Slide 15: TransAlta Exceeds Targets Outlined in Paris Agreement
TransAlta Exceeds Targets Outlined in Paris Agreement TRANSALTA EMISSIONS 50 Emissions (million tonnes CO2e) 40 30 20 TA On Track for > 70% Reductions by 2022 10 0 2005 2010 2015 2019 2022E 2026E Canada Other ▪ To achieve Paris Agreement targets, Canada would need to reduce emissions by 220 million
Slide 16: Providing Pathway for Further Carbon Reductions to Customers
Providing Pathway for Further Carbon Reductions to Customers 2021 2025 2030 Long-Duration Brazeau Existing Renewable Flow Battery Pumped Hydro Electricity Long-duration flow battery Transformative renewable Purchase existing Alberta renewable Proven track record of storage project to fully electrici
Slide 17: TransAlta's E-ESG Health Check
TransAlta’s E-ESG Health Check diversified Conversion to Well- Strong E-ESG focus, portfolio of assets gas in AB by end of 2021 on track for with a fully funded ~70% reduction driving resilient and approved in GHG by 2030 cash flows transition plan Removing systemic Robust development pipeline Prove
Slide 18: TransAlta - An Attractive Investment
TransAlta - An Attractive Investment Highly diversified, low carbon portfolio ▪ On track to reduce total GHG emissions by ~32 million tonnes by 2022 ▪ Largest hydro fleet in Alberta with upside post-PPA ▪ Highly-contracted renewables portfolio ▪ High-return marketing business ▪ Unique trading, comme
Slide 19: Questions and Answers
Questions and Answers TransAlta Powering Economies and Communities TransA\t: