Slide 1: Q4 and Annual 2022 Results
Q4 and Annual 2022 Results February 23, 2023
Slide 2: Disclaimer and Forward-Looking Statements
Disclaimer and Forward-Looking Statements This presentation includes "forward-looking information" within the meaning of applicable Canadian securities laws, and "forward-looking statements" within the meaning of applicable United States securities laws, including the United States Private Securitie
Slide 3: John Kousinioris, President and Chief Executive Officer
John Kousinioris President and Chief Executive Officer
Slide 4: 2022 Achievements
2022 Achievements Transaction At A Glance 2022 Results and Strategic Financial Position Initiatives Adjusted EBITDA1 of of growth projects of generation EBITDA from secured renewables and storage in 2022 FCF1 of or per share Added to renewables development pipeline including by 18% of advanced stage
Slide 5: Emissions Reductions
Emissions Reductions GHG Emissions (Million tonnes CO 2 ) 45 40 68% 35 Reduction in CO 2 emissions since 30 2015 25 20 15 10 75% 5 Target emissions reductions by 2026 0 2005 2015 2020 2021 2022 Emissions reductions targets on track 5
Slide 6: Development Pipeline
Development Pipeline Changes to Development Pipeline (MW) 374 MW Currently in advanced stage development in Alberta and Western Australia 1 Development pipeline expansion on track to meet 2025 target 6 1 Net of projects removed from pipeline in 2021.
Slide 7: Clean Electricity Growth Plan Execution
Clean Electricity Growth Plan Execution Capital EBITDA MW Location PPA Term Customer COD ($millions) ($millions) North Carolina Solar 122 North Carolina US$99 11 years Duke US$9 In service Pembina and Garden Plain Wind 130 Hanna, AB $190 - $200 17 years1 investment-grade $14 - $15 H1 2023 customer N
Slide 8: 2023 Outlook
2023 Outlook Adjusted EBITDA 1 ($millions) FCF 1 ($millions) 2023 2023 Outlook Outlook $1,200 to $1,320 $560 to $660 $961 $1,634 $1,263 $585 $917 $348 2020 2021 2022 2023 Outlook 2020 2021 2022 2023 Outlook Continued strong cash flow generation 8 1 Adjusted EBITDA and FCF are non-IFRS measures. Cert
Slide 9: Todd Stack
Todd Stack Executive Vice President, Finance and Chief Financial Officer President, TransAlta Renewables Inc.
Slide 10: Alberta Electricity Portfolio
Alberta Electricity Portfolio 2022 Realized Merchant Prices 2023 Hedging Average Volume 122% 120% Hedge Price Energy 6,874 GWh ~$98 / MWh Alberta H ydro average Gas average realized realized energy price to energy price to spot in spot in 2022 2022 1 Natural Gas 89%2 $2.54 / GJ $200 Quarterly Realiz
Slide 11: TransAlta Segmented Results
TransAlta Segmented Results 3 and 12 Months Ended December 31, 2022 ($millions) Q4 2022 Q4 2021 Adjusted EBITDA1 2022 2021 133 67 Hydro 527 322 92 76 Wind and Solar 311 262 264 103 Gas 629 488 19 37 Energy Transition 86 133 63 (11) Energy Marketing 183 166 (30) (29) Corporate (102) (85) 541 243 Tota
Slide 12: Alberta Hydro Exceeds Expectations
Alberta Hydro Exceeds Expectations Hydro Adjusted EBITDA 1 ($millions) Hydro Volumes (GWh) 900 600 800 500 700 Volume (GWh) 600 400 $ millions 500 300 400 300 200 200 100 100 - 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 2020 2021 2022 2021 2021 2021 2021 2022 2022 2022 2022 TA EBITDA Payment under Hydro PPA Ancillar
Slide 13: TransAlta Renewables Highlights and 2023 Outlook
TransAlta Renewables Highlights and 2023 Outlook Adjusted EBITDA 1 ($millions) CAFD 1 ($millions) 2023 2023 Outlook Outlook $495 to $535 $230 to $270 $304 $275 $487 $243 $462 $463 2020 2021 2022 2023 Outlook 2020 2021 2022 2023 Outlook Stable cash flows 1 Adjusted EBITDA and CAFD are non-IFRS measur
Slide 14: 2023 Priorities
2023 Priorities Safety, Reliability Strategic Initiatives and Availability Secure 500 MW of growth Accelerate CO2 emissions reduction to Achieve strong safety performance 75% from 2015 levels by 2026 Complete Garden Plain, Northern Achieve strong fleet availability of Goldfields Solar, White Rock, H
Slide 15: Our Value Proposition
Diversified and Clean electricity Our resilient fleet leader with ESG focus Value Proposition 4.3+ GW Strong growth pipeline financial position
Slide 16: Questions and Answers
Questions and Answers Visit us at: www.transalta.com Investor_relations@transalta.com
Slide 17: TAC Development Pipeline: United States
TAC Development Pipeline: United States Total All Stages: 2,054 MW – 2,304 MW Project MW Fuel Location Stage COD Range White Rock West 100 Wind OK 2023 White Rock East 200 Wind OK 2023 Horizon Hill 200 Wind OK 2023 Prairie Violet 130 Wind IL 2026 Old Town 185 Wind IL 2025 Monument Road 152 Wind NE 2
Slide 18: TAC Development Pipeline: Canada
TAC Development Pipeline: Canada Total All Stages: 2,062 MW – 2,912 MW COD Project MW Fuel Location Stage Range Garden Plain 130 Wind AB 2023 Tempest 100 Wind AB 2025 WaterCharger 180 Battery AB 2024 Riplinger 300 Wind AB 2025 Red Rock 100 Wind AB 2025-2026 SunHills Solar 115 Solar AB 2024 McNeil So
Slide 19: RNW Development Pipeline
RNW Development Pipeline Total All Stages: 827 MW COD Project MW Fuel Location Stage Range Canada Willow Creek 1 70 Wind AB 2026 Willow Creek 2 70 Wind AB 2026 Canadian Battery 10 Battery NB 2024+ United States Big Timber 50 Wind PA 2026 Trapper Valley 225 Wind WY 2026 Other US Wind Prospects 40 Win