Transalta Corporation · TSX:TA
Transalta — Investor Presentation (January 2014)
17 slides from Transalta's investor presentation, January 2014
Slide 1: January 2014 TransAlta Investor Presentation
January 2014 TransAlta Investor Presentation 1
Slide 2: Forward Looking Statements
Forward Looking Statements This presentation may contain forward-looking statements pertaining to the following: the timing and the completion and commissioning of projects under development including major projects and their attendant costs; our estimated spend on matters relating to the recent flo
Slide 3: TransAlta – Key Messages
TransAlta – Key Messages • ~9,200 MW spanning multiple fuels and Leading Diversified Power markets Generation Company • Over 75 facilities • ~2,400 MW of renewable energy • 100 years of operating history Proven Track Record • Disciplined approach to capital allocation • Highly contracted asset base
Slide 4: Our Business
Our Business Canada’s largest publicly traded wholesale power Coal: generator & marketer with over 100 years of operating 4,926 MW1 experience Diversified asset base with over 75 facilities strategically positioned in Canada, Western U.S. and Gas: 1,916 MW1 Western Australia Total fleet ca
Slide 5: Strategic Evolution of TransAlta
Strategic Evolution of TransAlta 20001 Actively shifting our business mix by growing renewables 20131 1Net Capacity Ownership Interest. Includes 100% of TransAlta Renewables’ assets. 5
Slide 6: Creation of TransAlta Renewables
Creation of TransAlta Renewables1 ~80% owned by TransAlta Corporation High Quality Diversified Portfolio 5 Operating Regions British Alberta Columbia 4 hydro 4 hydro 21 MW 77 MW 10 wind Bone Creek 19MW 417 MW Ontario Upper Mamquam 25MW Pingston 23MW Cowley North 20MW Summerview Two 66MW 4 hydro Queb
Slide 7: Capital Allocation Discipline
Capital Allocation Discipline Disciplined approach to driving long-term value for shareholders Optimize base business Invest in profitable growth Re-contract to stabilize cash High returning projects and flows and extend asset life acquisitions Optimize planned outages Target markets with st
Slide 8: Recent Business Highlights
Recent Business Highlights Stabilizing cash flows and extending the life of assets through re-contracting Contract extension for 245 MW in Australia (Q4/13) 20-year contract for 74 MW at Ottawa with Ontario Power Authority (Q3/13) 24-year contract with Salt River Project in Arizona for 50 MW a
Slide 9: 2013 Performance Highlights
2013 Performance Highlights 2010 2011 2012 YTD 2012 YTD 2013 (in $ millions, except as otherwise noted) Comparable EBITDA $963 $1,045 $1,014 $701 $780 FFO $805 $809 $776 $572 $550 Sustaining Capital $346 $319 $439 $327 $245 Adjusted Availability1 88.9% 88.2% 90.0% 90.3% 86.4% Consistent EBITDA dri
Slide 10: Highly Contracted with Upside Potential
Highly Contracted with Upside Potential Hedge targets increased to support near-term revenue certainty Total Portfolio Contractedness1 MW 88% 79% 78% 76% CONTRACTED PRICES 2014 AB ~ $55/ MWh Pac NW ~ $40/ MWh ¹Capacity adjusted volumes. Includes 100% of TransAlta Renewables’ assets. 10
Slide 11: Alberta – Strong Fundamentals
Alberta – Strong Fundamentals Alberta Interconnected Electric System (AIES) Alberta continues to Reserve Margin, 2000 - 20181 see considerable demand growth due to industrial and mining activities, and their indirect impacts Also, significant retirements in capacity in next 10 years: 800 MW of
Slide 12: Historical Power Prices in Alberta
Historical Power Prices in Alberta Since deregulation, AB Pool prices have averaged $65 / MWh Source: AESO 12
Slide 13: Alberta Forward Market
Alberta Forward Market AB forward market is a poor predictor of future spot market settles Forward prices tend to reflect spot fundamentals not future fundamentals Average annual Alberta power prices compared to historical forward Alberta power prices $/MWh Data: NGX, Alberta Electric System Operato
Slide 14: Significant Upside Potential Post Alberta PPAs
Significant Upside Potential Post Alberta PPAs Expiry of the Alberta Coal and Hydro PPAs expected to provide significant EBITDA upside and dividend coverage Current Coal PPAs generate average revenue of ~$30/MWh ¹Illustrative representation of estimated average EBITDA over period. Actual EBITDA coul
Slide 15: TransAlta’s 5-Year Growth Track Record
TransAlta’s 5-Year Growth Track Record Disciplined growth with a focus on contracted assets 2008 2009 2010 2010 2011 80 MW 694 MW 123 MW 132 MW 19 MW Kent Hills Canadian Hydro Ardenville / Kent Hills 2 Summerview 2 / Blue Trail Bone Creek 2011 2012 2013 2013 450 MW 125 MW 68 MW 144 MW Western Austra
Slide 16: Well Positioned to Continue to Grow
Well Positioned to Continue to Grow Recent additions: 125 MW long-term contracted Solomon Acquisition Gas Actively pursuing greenfield and acquisitions: Cogeneration in Alberta and B.C. Combined & simple cycle in Alberta and Australia Recent additions: 144 MW long-term contracted Wyomi
Slide 17: Focused on Creating Value
Focused on Creating Value Diversified and highly contracted portfolio Disciplined approach to driving long-term shareholder value Positioned for growth in markets with strong fundamentals Significant upside post-PPA 17