Slide 1: TransAlta Corporation Third Quarter 2019 Results
TransAlta Corporation Third Quarter 2019 Results Thursday, November 7, 2019 1
Slide 2: Forward Looking Statements
Forward Looking Statements This presentation includes forward-looking statements or information (collectively referred to herein as “forward-looking statements”) within the meaning of applicable securities legislation. All forward-looking statements are based on our beliefs as well as assumptions ba
Slide 3: Agenda
Agenda CEO Update Advancements in our Clean Energy Investment Plan Growth Alberta Business Financial Results and Updates CEO Summary Questions and Answers 3
Slide 4: Highlights – Three Months Ended Sept. 30, 2019
Highlights – Three Months Ended Sept. 30, 2019 Comparable EBITDA(1) FFO(1) FCF(1) ($ millions) ($ millions) ($ millions) $250 $249 $204 $188 $114 $94 2018 2019 2018 2019 2018 2019 • Strong operational and financial performance • Announced initiatives which progress our growth strategy and Clean Ener
Slide 5: Strategy Milestones
Strategy Milestones Achieved Milestones ✓ Issued FNTP for Sundance 6 Unit ✓ Issued LNTP for Keephills 2 Unit ✓ K3/G3 non-operating interest swap ✓ Transported first gas on Pioneer Pipeline with firm contract beginning November 1st ✓ Advanced repowering strategy with Kineticor transaction ✓ Received
Slide 6: Significant Growth Underway
Significant Growth Underway Capital Expected Expected Projects Owned MW Invested6 Returns COD (CAD$ millions) Big Level Wind 90 $225 - $240 High single digit Q4 2019 RNW Antrim Wind 29 $100 - $110 High single digit Q4 2019 Skookumchuck 67 $150 - $160 High single digit H1 2020 Wind1 Potential Windris
Slide 7: Current Growth Projects EBITDA
Current Growth Projects EBITDA EBITDA GENERATED BY NEW ASSETS ($ MILLIONS) $60 $50 $40 SemCAMS¹ ² Windrise¹ $30 Windcharger¹ Skookumchuck¹ Big Level/Antrim³ $20 $10 $0 2019 2020 2021 2022 1) Potential drop-down candidates to TransAlta Renewables. 2) Reflects 50% of total project EBITDA as SemCAMS ha
Slide 8: Alberta Electricity Prices
Alberta Electricity Prices ALBERTA POOL PRICE AND FORWARD CURVE ($/MWH) $80 $70 $58 $60 $55 $55 $50 $47 $/MWh $40 $30 $20 $10 $- Q3/17 Q4/17 Q1/18 Q2/18 Q3/18 Q4/18 Q1/19 Q2/19 Q3/19 Bal 2020 2019 Notes: Forward curve as at November 5, 2019 8
Slide 9: EBITDA Generated by Canadian Coal
EBITDA Generated by Canadian Coal ⚫ Lower generation compared to Q3/18 due to weaker market conditions ⚫ Comparable EBITDA increased due to: ⚫ Efficient and economic operations of facilities ⚫ Increased co-firing with natural gas ⚫ Cost reductions implemented over the past few years THIRD QUARTER 20
Slide 10: Financial Results
Financial Results NINE MONTHS 2019 EBITDA (1,2) ($MILLIONS) ⚫ EBITDA and segmented cash flows in line with expectations ⚫ Strong performance from Canadian Coal, Energy Marketing and Canadian Gas ⚫ YTD U.S. Coal results negatively impacted by $25 million due to an NINE MONTHS 2019 SEGMENTED CASH FLOW
Slide 11: EBITDA Generated by TransAlta Hydro
EBITDA Generated by TransAlta Hydro YTD 2019 HYDRO ($ MILLIONS) Hydro assets currently generating $202 million of EBITDA YTD prior to payment of obligations to the Balancing Pool Other Revenue includes revenues from other hydro assets, transmission assets, and other services provided by the hydro fa
Slide 12: Financial Updates
Financial Updates REVISED FULL YEAR 2019 OUTLOOK(1) ($ MILLIONS) Revised Original Outlook Outlook Comparable EBITDA No change $875 - $975 Free cash flow $300 - $340 $270 - $330 • Increased full year 2019 outlook • $1.4 billion capacity on credit facilities, with over $300 million of cash on hand • R
Slide 13: Question and Answer
Question and Answer 13