Transalta Corporation · TSX:TA

Transalta — FY2021 Earnings Presentation

18 slides from Transalta's earnings presentation, Feb 24, 2022

  1. Slide 1: Q4 and Annual 2021 Results

    Q4 and Annual 2021 Results FEBRUARY 24, 2022 1

  2. Slide 2: Forward-Looking Statements

    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 Securities Litigation Re

  3. Slide 3: John Kousinioris, President and Chief Executive Officer

    John Kousinioris President and Chief Executive Officer 3

  4. Slide 4: Full Year 2021 Financial Highlights

    Full Year 2021 Financial Highlights 12 Months Ended December 31, 2021 ADJUSTED EBITDA 1 FREE CASH FLOW 1 FREE CASH FLOW PER ($ millions) ($ millions ) SHARE 1 +36% +57% +59% $562 $2.07 $1,263 $927 $358 $1.30 2020 2021 2020 2021 2020 2021 Cash flow generation driven by Alberta Portfolio and Energy Ma

  5. Slide 5: 2021 Achievements

    2021 Achievements 2021 RESULTS AND GROWTH AND CUSTOMER STRATEGIC INITIATIVES FINANCIAL POSITION SOLUTIONS 1  EBITDA increase of 36%  600 MW of growth announced in 2021  Advanced Clean Electricity Growth Plan – Expansion in all 3 operating regions 1  FCF per share increase of 59% to 1  Achieved

  6. Slide 6: Clean Electricity Growth Plan Execution in 2021

    Clean Electricity Growth Plan Execution in 2021 North Garden Northern White Rock Carolina Plain Goldfields Wind Solar 600 MW ~ $1 billion 30% of MW 130 48 300 122 total capacity across 5 investment 5-year target projects announced in opportunity secured Western Caddo County, North 2021 Location Hann

  7. Slide 7: White Rock Wind Project Highlights

    White Rock Wind Project Highlights Location Caddo County, OK Contracted 100% Size 300 MW Customer AA rated Technology Vestas EBITDA US$42-46 million COD H2 2023 Term Long-term On-site construction to begin in 2022 White Rock East and White Rock West will, collectively, be TransAlta’s largest wind fa

  8. Slide 8: Development Pipeline (United States)

    Development Pipeline Total All Stages: 1,105 MW UNITED STATES 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 2024-2025 Big Timber 50 Wind PA  2026 O

  9. Slide 9: Development Pipeline (Canada)

    Development Pipeline Total All Stages: 1,470 – 2,070 MW CANADA PROJECT MW FUEL LOCATION STAGE COD RANGE Garden Plain 130 Wind AB  2022 Riplinger 300 Wind AB  2025 Willow Creek 1 70 Wind AB  2024-2025 Willow Creek 2 70 Wind AB 2024-2025 Tempest 100 Wind AB 2024 WaterCharger 180 Battery AB 2023 Sun

  10. Slide 10: Development Pipeline (Australia)

    Development Pipeline Total All Stages: 228 MW AUSTRALIA PROJECT MW FUEL LOCATION STAGE COD RANGE Northern Solar and 48 WA 2022 Goldfields Solar Battery Mt Keith 132kV N/A Transmission WA 2023 Expansion Mt Keith Capacity 40 Gas WA 2023 Additions Goldfields Wind, Solar, 90 WA 2024 Expansions Gas South

  11. Slide 11: Todd Stack

    Todd Stack Executive Vice President, Finance and Chief Financial Officer President, TransAlta Renewables Inc. 11

  12. Slide 12: Alberta Electricity Portfolio

    Alberta Electricity Portfolio 2021 Realized Prices and 2022 Hedging Assumptions 19% ALBERTA HYDRO AVERAGE PREMIUM IN 2021 $130 Hedging 2022 Full Year Assumptions $110 Volume Average Hedge Price Energy 6,278 GWh1 $75 / MWh $90 Natural 50 million GJ2 $2.75 / GJ Average Annual Gas $70 Spot Price 1Repre

  13. Slide 13: TransAlta Segmented Results

    TransAlta Segmented Results 12 Months Ended December 31, 2021 2021 2020 % Change Hydro 322 105 207% Wind and Solar 262 248 6% Gas 494 367 35% Energy Transition 133 175 (24)% Energy Marketing 137 113 21% Corporate (85) (81) 5% Total Adjusted EBITDA1 1,263 927 36% Diversified portfolio delivers except

  14. Slide 14: TransAlta 2021 Year in Review and 2022 Guidance

    TransAlta 2021 Year in Review and 2022 Guidance FCF 1 ($MILLIONS) ADJUSTED EBITDA 1 ($MILLIONS) 2022 Guidance + 53% 2022 Guidance $455 - $555 + 12% $1,065 - $1,185 $1,263 $562 $1,123 $984 $927 $367 $379 $358 2018 2019 2020 2021 2022E 2018 2019 2020 2021 2022E SENIOR CORPORATE DEBT ($BILLIONS) LIQUID

  15. Slide 15: TransAlta Renewables 2021 Highlights

    TransAlta Renewables 2021 Highlights 12 Months Ended December 31, 2021 2021 2020 % Change 2022 Outlook Adjusted EBITDA1 463 462 ~ 485 - 525 CAFD1 275 304 (10)% 245 - 285 CAFD per share1 1.03 1.14 (10)% 0.92 - 1.07 Dividends per share 0.94 0.94 ~ 0.94 Payout ratio 91% 82% 10% 88%-102% 1 Adjusted EBIT

  16. Slide 16: 2022 Priorities

    2022 Priorities SAFETY, RELIABILITY AND GROWTH AND STRATEGIC INITIATIVES AVAILABILITY COMMERCIAL • Achieve strong safety • Reach FID on 400 MW of additional clean • Advance 75% CO2 emissions performance energy projects reduction target by 2026 over 2015 levels • Achieve strong fleet availability • A

  17. Slide 17: Our Value Proposition

    Diversified and Clean power leader resilient fleet with ESG focus Our Value Proposition ~3 GW Strong growth pipeline financial position 17

  18. Slide 18: Questions & Answers

    Questions & Answers Visit us at: www.transalta.com Investor_Relations@TransAlta.com 18

TransAlta — FY2021 Earnings Presentation on 6ix