Slide 1: TransAlta Corporation Investor Presentation
TransAlta Corporation Investor Presentation June 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: John Kousinioris, President and Chief Executive Officer
John Kousinioris President and Chief Executive Officer 3
Slide 4: Todd Stack, EVP, Finance and Chief Financial Officer
Todd Stack EVP, Finance and Chief Financial Officer 4
Slide 5: TransAlta Summary
TransAlta Summary Corporate Snapshot Enterprise Value1 $9.9 Billion Market Capitalization1 $3.2 Billion Dividend Yield1 1.5% 2021E EBITDA (guidance) $960 - $1,080M 2021E FCF2 (guidance) $340M - $440M CDP Score A – (industry leader) TECHNOLOGY DIVERSITY IN 20213 TECHNOLOGY DIVERSITY IN 20253 13% 15%
Slide 6: TransAlta Relative Performance
TransAlta Relative Performance THREE-YEAR RELATIVE SHARE PRICE PERFORMANCE 160.00 150.00 140.00 130.00 120.00 110.00 100.00 90.00 80.00 70.00 60.00 S&P/TSX Capped / Utilities S&P TSX Capped Composite TransAlta Corporation 6
Slide 7: 2021 Strategic Priorities
2021 Strategic Priorities Successfully complete conversion strategy Lead ESG policy development Optimize our business in the Alberta merchant market Grow our customer-centric clean power solutions business Maintain a strong financial position Maintain a robust COVID-19 response & recovery 7
Slide 8: 2021 Q1 Achievements
2021 Q1 Achievements Q1 Results and Financial Growth and Customer Strategic Initiatives Position Solutions EBITDA increase of 41% 130 MW Garden Plain wind Credit facilities renewed and farm launched with Pembina extended FCF per share increase of Pipeline 23% Sundance 6 CTG complete 207
Slide 9: Strong Cash Flow Generation
Strong Cash Flow Generation FCF ($MILLIONS) FCF PER SHARE Guidance $450 $1.60 $340 - $440 $1.40 $367 $379 $375 $1.20 $1.34 $358 $1.28 $1.30 $300 $328 $1.14 $1.00 $0.80 $0.60 $150 $0.40 $0.48 $129 $0.20 $- $- 2017 2018 2019 2020 2021 Q1 2017 2018 2019 2020 2021 Q1 SENIOR CORPORATE DEBT1 ($BILLIONS) L
Slide 10: 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 • Dividends Dividends Debt Reduction Capital • Share Buyback Dividend policy of 10% - 15% of T
Slide 11: Growth Projects Underway
Growth Projects Underway Capital Invested Expected Expected Projects Owned MW (C$ millions) Returns COD Windrise Wind 207 $270 - $285 High single digit H2 2021 Boiler Conversions 1,457 $120 - $200 High double digit 2020 to 2022 Repowering Sundance 5 746 $900 - $950 Double digit 2023 Garden Plain Win
Slide 12: Launched Garden Plain 130 MW Wind Project in Alberta
Launched Garden Plain 130 MW Wind Project in Alberta 18-year 100 MW renewable PPA with Pembina First for Pembina to advance ESG objectives ~$195 million capital Expected EBITDA of ~$17 million in 2023 Target COD H2 2022 TransAlta’s 11th Alberta Wind Farm Growing Our Wind Fleet to Over 2 GW
Slide 13: TransAlta's Growth Pipeline
TransAlta’s Growth Pipeline Owned Projects Location COD Range MW Advanced-Stage Projects in Development Garden Plain Wind 130 AB 2022 Horizon Hill Wind 200 OK 2023 – 2024 White Rock East 200 OK 2023 – 2024 Wind White Rock West 100 OK 2023 – 2024 Wind Advanced Stage Total = 660MW Early/Mid-Stage Pr
Slide 14: 2021 Outlook
2021 Outlook Comparable $960 – $1,080 Sustaining $175 – $210 EBITDA Million Capex Million Up 10% from 2020 at the midpoint $340 – $440 Cash to $0.18 Dividend FCF + Share Buybacks Million Shareholders Up 9% from 2020 at the midpoint Key Factors and Assumptions AB power prices $58 - $68 per MWh Mi
Slide 15: 2021 Balance of Year Priorities
2021 Balance of Year Priorities Safety, Reliability and Growth and Customer Strategic Initiatives Availability Solutions Achieve strong safety Complete Windrise Recontract Sarnia performance Commence construction on Complete Keephills 2 CTG Achieve strong fleet Garden Plain Complete Ke
Slide 16: 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 17: ESG Reporting, Rankings and Recognition
ESG Reporting, Rankings and Recognition • Six years of voluntary integrated reporting • Reporting on over 80 social and environmental KPI’s • Utilizing leading ESG reporting frameworks • Voluntary climate change reporting since 2010 • Current CDP score: A- / North American average score: D • Volunta
Slide 18: TransAlta's Carbon Transition
TransAlta’s Carbon Transition GHG EMISSIONS (MILLION TONNES CO2e) $375 50 Off Coal Off Coal Emissions (million tonnes 40 in Canada in US - - end of end of 30 2021 2025 CO2e) 20 10 0 2005 2010 2015 2019 2020 2022E 2026E Canada Other To achieve Paris Agreement targets, Canada would need to reduce em
Slide 19: 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 20: TransAlta - An Attractive Investment
TransAlta - An Attractive Investment Well-diversified Clean power portfolio of assets leader with strong driving resilient ESG focus cash flows Robust and diversified pipeline ~2.5 GW of with Strong financial opportunities and position, financial discipline, and capacity leading development expertis
Slide 21: Investor Relations Contact
Investor_relations@transalta.com 1-800-387-3598 Visit us at the Investor Centre at TransAlta.com