Transalta Corporation · TSX:TA
Transalta — Investor Presentation (September 2008)
9 slides from Transalta's investor presentation, September 2008
Slide 1: Investor Presentation September 2008
Investor Presentation September 2008 We’re ready for a changing world ▀1
Slide 2: 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
Slide 3: TransAlta Value Proposition
TransAlta Value Proposition VALUE PROPOSITION Consistent Returns CANADA Yield & Growth Dividend + earnings growth UNITED STATES GENERATION CAPACITY FACILITIES OWNED Exposure to Growing Coal-fired Power Markets plants 4,942 MW Coal-fired plant 278 MW Low to Moderate Risk (IN DEVELOPMENT) Business Mod
Slide 4: Energizing the West
Energizing the West Well positioned to capture increasing value given higher prices in core markets, re-contracting, and focused growth strategy Near-term (2008 – 2012) – higher electricity prices and recontracting of open merchant position fuels strong earnings Super regional and cash flow growth
Slide 5: Western market fundamentals continue to support financial expectations
Western market fundamentals continue to support financial expectations RESERVE MARGIN1&2 AVERAGE FORWARD WESTERN MARKET TRADING PRICES1&3 EXPOSURE 7,000 30% 6,000 $100 25% 5,000 $90 20% $80 4,000 $70 15% 3,000 $60 10% $50 2,000 $40 5% 1,000 $30 0% $20 0 2007 2008 2009 2010 2011 2012 2007 2008 2009 2
Slide 6: Alberta & PACNW open merchant position provide opportunity to capture upside of higher prices
Alberta & PACNW open merchant position provide opportunity to capture upside of higher prices Disciplined hedging strategy that provides for more secure earnings and cash profile in a volatile and cyclical commodity market Total MWs 9,000 8,000 7,000 Merchant 6,000 5,000 4,000 3,000 Alberta PPAs 2,0
Slide 7: Western-focused growth plans fuel earnings expansion beyond 2012
Western-focused growth plans fuel earnings expansion beyond 2012 FOCUS Long- term EPS growth Short-term: 2008 - 2012 driven by western Renewable growth in the west portfolio expansion Wind CANADA Geothermal Co-generation in Alberta Thermal uprates CCS Pilot CO2 offsets UNITED STATES Me
Slide 8: 5-yr development plan leverages expertise and focuses on renewables and cogeneration
5-yr development plan* leverages expertise and focuses on renewables and cogeneration WIND CO-GEN HYDRO GEOTHL THERMAL Wind Cogen Hydro Geother mal TOTAL *Sept, 08 AB 844 MW 665 MW Storage rights 99 MW 1,608 MW optimization NB 83 MW 83 MW SASK 99 MW 99 MW CA 87 MW 87 MW Total 1,026 MW 665 MW 87 MW 9
Slide 9: Solid track record of results
Solid track record of results $1.70 EARNINGS PER SHARE CASH FLOW FROM OPERATIONS $1.60 $1,050 $1.50 40 - 60% CF $950M 22 - 25% CAGR $1.31 $1.45 $900 Growth $850M $1.25 $750 $1.16 $1.00 $600 $0.82 $450 $0.75 $0.66 $300 $0.50 $150 $0.25 $0 2004 2005 2006 2007 2008e 2004 2005 2006 2007 2008e COMPARABLE