Slide 1: Q2 2021 Results
Q2 2021 Results August 10, 2021 TransAlta Corporation 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: Q2 Achievements
Q2 Achievements Q2 Results and Financial Growth and Customer Strategic Initiatives Position Solutions EBITDA increase of 39% 48 MW Northern Goldfields Keephills 2 CTG complete Solar & Storage Project with FCF per share increase of BHP Nickel West Pty Ltd. Sale of the Pioneer Pipeline 55% c
Slide 5: Launched 48 MW Northern Goldfields Solar & Storage Project in Australia
Launched 48 MW Northern Goldfields Solar & Storage Project in Australia Northern Goldfields ~16-year PPA with BHP Solar Project Reduces BHP’s Scope 2 emissions by up to 12% at Mount Keith and Leinster $64 - $68 million capital Expected EBITDA of $8 - $9 million Target COD H2 2022 TransAlta
Slide 6: Launched the Garden Plain 130 MW Wind Project in Alberta
Launched the Garden Plain 130 MW Wind Project in Alberta 18-year 100 MW renewable PPA with Pembina Advances Pembina’s ESG objectives $190 - $200 million capital Expected EBITDA of ~$14 – $18 million Target COD H2 2022 Continuing to Grow Our Alberta Fleet The 11th Wind Farm in the Province
Slide 7: TransAlta's Growth Pipeline
Location Projects MW TransAlta’s Growth Pipeline (COD) Advanced-Stage Projects in Development (500 MW) Horizon Hill Wind 200 OK (2023-24) Advanced Stage Development Sites Early/Mid Stage Development Sites White Rock East Wind 200 OK (2023-24) White Rock West Wind 100 OK (2023-24) Early/Mid-Stage Pro
Slide 8: Todd Stack, EVP Finance and Chief Financial Officer
Todd Stack EVP, Finance and Chief Financial Officer 8
Slide 9: 2021 Q2 Financial Highlights
2021 Q2 Financial Highlights 3- MONTHS ENDED JUNE 30, 2021 Comparable EBITDA FCF FCF Per Share ($) ($ millions) ($ millions) $302 $138 39% 52% $0.51 55% $217 $91 $0.33 2020 2021 2020 2021 2020 2021 Excellent Cash Flow Generation Driven by Alberta Operations 9
Slide 10: Segmented Results
Segmented Results 3 MONTHS ENDED JUNE 30, 2021 EBITDA Cash Flow Q2 Q2 Change Q2 Q2 Change 2021 2020 (%) 2021 2020 (%) Hydro 96 29 90 27 Alberta Thermal 85 30 26 21 Wind and Solar 55 61 50 57 North American Gas 18 27 26 25 Australian Gas 31 29 26 29 Centralia 14 27 4 20 Energy Marketing 27 28 35 30 C
Slide 11: Alberta Electricity Portfolio
Alberta Electricity Portfolio 3- MONTHS ENDED JUNE 30, 2021 AB Thermal AB Hydro AB Gas AB Wind Energy Energy Ancillary Energy Energy Total Production 2,386 GWh 423 GWh 749 GWh 105 GWh 204 GWh Hedge Volume (%) 71% - - - - Average Realized $93 $133 $64 $95 $73 Prices ($ / MWh) Average Pool Price $105
Slide 12: TransAlta Renewables Q2 2021 Highlights
TransAlta Renewables Q2 2021 Highlights 3 & 6 MONTHS ENDED JUNE 30, 2021 Q2 2021 Q2 2020 YTD 2021 YTD 2020 97 115 Comparable EBITDA 220 233 64 90 AFFO 157 184 40 67 CAFD 130 158 0.24 0.34 AFFO per share 0.59 0.69 0.15 0.25 CAFD per share 0.49 0.59 0.23 0.23 Dividends per share 0.47 0.47 12
Slide 13: 2021 Outlook Update
2021 Outlook Update Change from Original Updated ($ millions) Previous Midpoint Comparable $960 – $1,080 $1,100 – $1,200 Up ~13% EBITDA Up ~22% on a per FCF $340 – $440 $440 – $515 share basis Revisions to Sustaining planned $175 – $210 $200 - $225 CAPEX maintenance and reliability spare 13
Slide 14: 2021 Financial Strength
2021 Financial Strength FCF ($MILLIONS) FCF PER SHARE Updated Guidance Updated $440 - $515 Guidance $1.63 - $1.91 $367 $379 $358 $328 $1.34 $1.30 $1.28 $1.14 $267 $0.99 2017 2018 2019 2020 2021 YTD 2017 2018 2019 2020 2021 YTD SENIOR CORPORATE DEBT ($BILLIONS) LIQUIDITY ($BILLIONS) $2.6 $0.7 $0.6 $0
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 3 CTG Achieve strong fleet Garden Plain Wind Sundan
Slide 16: 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 ~3 GW of with Strong financial opportunities and position, financial discipline, and capacity leading development expertise
Slide 17: Questions & Answers
Questions & Answers Visit us at TransAlta.com