Transalta Corporation · TSX:TA
Transalta — 2013 TD Clean Power Forum
15 slides from Transalta's conference presentation, September 2013
Slide 1: 2013 TD Clean Power Forum
2013 TD Clean Power Forum Brett Gellner Chief Financial 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. All forward looking statements are based on our beliefs and assumptions based on information available at t
Slide 3: Leading Diversified Power Generation Company
Leading Diversified Power Generation Company Coal: Diversified fleet of ~9,000 MWs located in 4,926 MW1 Canada, United States and Australia Market cap of over $3.5 billion Gas: 1,913 MW Investment grade credit ratings Hydro: Sponsor and majority owner of TransAlta 900 MW Renewables W
Slide 4: Value Proposition
Value Proposition Diversified portfolio Over 75 facilities spanning multiple regions and fuels Attractive yield supported by adequate cash flow Highly contracted assets provide stable cash flows and support dividend 500 MW of new long-term contracts recently signed Significant incremental EB
Slide 5: Delivering on the Strategy
Delivering on the Strategy Objective Actions Extend life of existing assets • CE Gen: 23 year contract with City of Riverside through new contracts • Ottawa gas fired: 20 year contract with OPA (AAA) • Centralia: 11 year contract with Puget Energy Optimize value of existing • Implemented shared serv
Slide 6: Significant Upside Potential Post Alberta PPAs
Significant Upside Potential Post Alberta PPAs Expiry of the Alberta Coal and Hydro PPAs expected to provide significant EBITDA upside and dividend coverage $mm Current Coal PPAs generate average revenue of ~$30/MWh PPA Buyers' Economics ¹ Illustrative representation of estimated average EBITDA over
Slide 7: Cash Flow Strength
Cash Flow Strength Excess Funds from Operations available to fund sustaining capital, debt and growth ¹ Potential based on $65/MWh price in Alberta 7
Slide 8: Proven Track Record for Growth in Renewables
Proven Track Record for Growth in Renewables Proven Renewable Asset Growth (MW) 2,212 100 years renewable operating experience 176% increase 1,100 9,051 generating capacity MW 801 801 1,112 ~80 retained interest – % intention to remain majority shareholder 2000 2013 Majority Shareholder Fully Aligne
Slide 9: TransAlta Renewables
TransAlta Renewables 28 renewable power 1,112 megawatts installed $166 million in pro forma $86 million estimated generation facilities generating capacity adjusted EBITDA annual dividend High Quality Diversified Portfolio Wolfe Island, ON Upper Mamquam, BC 5 Operating Regions British Alberta Columb
Slide 10: TransAlta Renewables Brings Significant Benefits to TransAlta Corporation
TransAlta Renewables Brings Significant benefits to TransAlta Corporation Establishes focused and competitive vehicle for pursuing and funding growth opportunities in renewable power Provides additional financial flexibility for TransAlta TransAlta retains majority ownership and operator Con
Slide 11: TransAlta Renewables: Premier Renewable Company
TransAlta Renewables: Premier Renewable Company • Scale and diversification underpinned by high quality assets • Low-risk portfolio: • 100% operating assets • Fully contracted investment-grade counterparties • Multi-faceted growth strategy with potential access to >1,000 MW pipeline • Conservative p
Slide 12: TransAlta Renewables: Canada's Largest Wind Generator
TransAlta Renewables: Canada’s Largest Wind Generator Operating Wind Capacity in Canada (Net MW) 1,107 Source: CanWea June 2013 & company websites Competitive Advantages of Unrivaled Scale 12
Slide 13: TransAlta Renewables: Highly Diversified
TransAlta Renewables: Highly Diversified Geography Generation source 6% British Columbia 14% 10% Hydro New Brunswick 41% Alberta 10% Quebec 33% 86% Ontario Wind Combination of Wind and Hydro Favours Stable Cash Flow 13
Slide 14: TransAlta Renewables: Multi-faceted Growth Strategy
TransAlta Renewables: Multi-faceted Growth Strategy • Consolidate fragmented industry • Acquisitions of ~1,000 MW of assets from TransAlta • Expansion into other markets and technologies Le Nordais, 99 MW Experience to Execute on Multi-Faceted Growth Strategy 14 14
Slide 15: TransAlta: Focused on Creating Value
TransAlta: Focused on Creating Value Extending life of asset base through new contracts Continuous optimization of existing assets Significant upside and dividend coverage post-PPA Well positioned to grow 15