Slide 1: Second Quarter 2024 Results
Second Quarter 2024 Results August 1 1, 2024
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: Q2 2024 achievements and strategic initiatives
Q2 2024Atachievements Transaction A Glance and strategic initiatives Results and Growth and customer Strategic initiatives financial position solutions Adjusted EBITDA1 of $312 million Horizon Hill and White Rock East Advancing acquisition of 55% from renewables wind facilities completed Heartland G
Slide 5: Restructured Energy Market update
Restructured Energy Market update Icon Icon Here State of play Here TransAlta’s positioning Market requires Mandatory day-ahead market Changing energy landscape requires a long- low-cost Strategic energy bidding mechanisms term focus flexible Review of the current price ceiling and floor Market rede
Slide 6: Legacy sites present significant opportunities
Legacy sites present significant opportunities Alberta & Centralia Seattle Thermal Steel in the ground / speed to market Transmission Sundance Edmonton interconnection Keephills Natural gas Fibre optic access Water rights Temperate climate and Seattle existing cooling ponds Skilled workforce availab
Slide 7: Joel Hunter, Executive Vice President, Finance and CFO
Replace with JH image when available; Anna has booked headshots Joel Hunter Executive Vice President, Finance and Chief Financial Officer
Slide 8: TransAlta segmented results
TransAlta segmented results Three months ended June 30, 2024 ($millions) Adjusted EBITDA1 Q2 2024 Q2 2023 Hydro 83 147 Strong Wind and Solar 88 50 performance Gas 146 166 from Wind and Alberta Energy Transition 3 13 gas fleet Energy Marketing 30 43 Corporate (38) (32) Total 312 387 1 Adjusted EBITDA
Slide 9: Alberta electricity portfolio
Alberta electricity portfolio Q2 2024 prices $120 116% AB fleet average realized merchant and contract Asset $100 energy price over spot price optimization in Q2 2024 1 $80 activities $52 29% generated $60 AB Hydro average merchant significant energy price over spot price in Q2 2024 2 premiums $40 o
Slide 10: Strong hedge position through 2026
Strong hedge position through 2026 1,400 Robust hedge 1,200 program to Average MW per hour 1,000 protect 800 earnings and 600 cash flows in 400 low price 200 periods 0 Q3 2024 Q4 2024 2025 2026 Capacity Contract C&I and financial hedges Q3 2024 Q4 2024 Full year 2025 Full year 2026 Hedged Price ($/M
Slide 11: Alberta hydro continues to perform to expectations
Alberta hydro continues to perform to expectations Hydro adjusted EBITDA 1 ($millions) Alberta hydro fleet volumes (GWh) 160 900 140 800 Volume (GWh) 120 700 $ millions 100 600 80 500 60 400 40 300 20 200 0 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q2 2021 Q2 2022 Q2 2023 Q2 2024 2021 2021 2021 2021
Slide 12: 2024 guidance maintained
2024 guidance maintained ($ millions) 2024 Outlook Confident in our plan Adjusted EBITDA1 1,150 to 1,300 to deliver FCF1 450 to 600 on our 2024 FCF ($/share) 1.47 to 1.96 guidance Sustaining capital 130 to 150 12 1 Adjusted EBITDA, Free Cash Flow, and Free Cash Flow per share are non-IFRS measures,
Slide 13: 2024 share repurchase program enhancing shareholder returns
2024 share repurchase program enhancing shareholder returns Repurchased 9.5 million $89 million Balanced, common shares prudent and $150 disciplined million approach to capital allocation Delivered 59% of up to $150 million 2024 program 13
Slide 14: 2024 priorities
2024 priorities Safety, people and culture Financial and operational Improve leading and lagging safety Deliver adjusted EBITDA of $1.15 - $1.3 billion performance, including TRIF of 0.0 Long-term Deliver FCF of $450 - $600 million shareholder Advance leadership and talent development Execute share
Slide 15: Our Value Proposition
Diversified and resilient fleet Our Value Clean electricity leader Proposition High potential legacy energy campuses 5 GW growth pipeline Strong financial position Antrim, New Hampshire 15
Slide 16: Questions and answers
Questions and answers Visit us at: www.transalta.com Investor_relations@transalta.com 16
Slide 17: Development pipeline
Development pipeline Potential development: 2,294 – 2,794 MW United States Project MW Technology State Stage FID Monument Road 152 Wind NE 2025 Swan Creek 126 Wind NE 2025 Dos Rios 242 Wind OK 2025 Old Town 185 Wind IL 2026 Cotton Belle 1 104 Solar TX 2026 Cotton Belle 2 81 Solar TX 2026 Square Top
Slide 18: Development pipeline
Development pipeline Potential development: 2,014 – 2,864 MW Canada Project MW Technology Location Stage FID On Tempest 100 Wind AB hold On WaterCharger 180 Battery AB hold On Pinnacle 1 and 2 44 Gas AB hold New Brunswick Power 10 Battery NB 2025 Battery Sunhills Solar 170 Solar AB 2026 Pumped Tent
Slide 19: Development pipeline
Development pipeline Potential Development: 494 MW Australia Project MW Technology Location Stage FID Mt. Keith West N/A Transmission Mt Keith 2025 Network Upgrade Port Boodarie Solar 50 Solar 2024 Hedland Southern Cross 120 Solar/Wind Kalgoorlie TBD Energy Transmission N/A Transmission Various 2024