Transalta Corporation · TSX:TA
Transalta — CIBC 2015 Institutional Investor Conference
10 slides from Transalta's conference presentation, 2015
Slide 1: CIBC 2015 Institutional Investor Conference
CIBC 2015 Institutional Investor Conference Brett Gellner Chief Investment Officer 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 in 2014, 2015 and subsequent years. All forward looking statements are based on our beliefs and assumptions
Slide 3: Our Platform
Our Platform • • Leading publicly traded power generator & Coal 4,930 MW marketer with over 100 years of operating experience and 8,500 MW of capacity • Gas • Diversified asset base with 64 facilities 1,447 MW strategically positioned in Canada, Western U.S. and Western Australia • Wind • Significan
Slide 4: Strategic Focus
Strategic Focus Operational Excellence Growth & Optionality Financial Strength & Stability • Strong Availability across the • $4.0 billion in growth since • $500 million in debt reduction fleet 2009, offsetting reductions in since year-end 2013 • Lower mining, operating & power prices & plant • ~$1.
Slide 5: Proven Track Record of Growth
Proven Track Record of Growth Growth & other initiatives undertaken to offset lower power prices at Centralia and plant retirements/sales Capital Invested in Growth $M EBITDA $M $1,200 $650M in Growth & committed $1,000 capital Other Initiatives $800 ~$90M in incremental EBITDA $600 $400 $200 $- 201
Slide 6: Significant Near to Medium-term EBITDA Growth
Significant Near to Medium-term EBITDA Growth Significant EBITDA Increase from Committed Growth and Post Alberta PPA Upside $M $2,000 $1,800 $1,600 Upside at Upside at $75/MWH $1,400 $65/MWH Upside at $1,200 $55/MWH $1,000 $800 $600 $400 $200 $- 2014E 2017E 2018E 2021E Existing Business Australian G
Slide 7: Australian Growth Update
Australian Growth Update Australia Natural Gas Pipeline • 270 km gas pipeline to supply gas to TransAlta’s Solomon generation facility • AUD$80 mm investment generating ~AUS$12 mm EBITDA • 21 year tolling agreement with FMG • COD Target: Q1, 2015 • Potential for expansion South Hedland • 150 MW gas
Slide 8: Potential Investment Opportunities
Potential Investment Opportunities Gas-fired • Significant combined cycle and cogen opportunities in Western Canada • Brownfield expansion at existing sites in Alberta • Expansion opportunities at South Hedland • Greenfield & acquisition opportunities in Canada, U.S. & Australia Transitioning Coal •
Slide 9: Strategic Flexibility – Leveraging TransAlta Renewables
Strategic Flexibility – Leveraging TransAlta Renewables • Sponsored vehicle to own long-term contracted assets TransAlta Public • Access lower cost funding and enhance returns for contracted assets • Release capital to TransAlta as required 70% • >$3 billion potential drop down 30% inventory • Stron
Slide 10: Investment Proposition
Investment Proposition • Diversified and highly contracted portfolio • Significant near and long-term EBITDA growth • Well positioned for growth in markets with strong fundamentals • Diversified and low cost portfolio provides greatest optionality to meet Alberta’s future capacity needs • Access to
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