Slide 1: Investor Update
Investor Update September 2003
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. These statements are subject to a number of risks and uncertainties that may cause actual results to differ
Slide 3: Who we are
Who we are • Canada’s largest non-regulated electric generation and wholesale marketing company • Close to $9 billion in assets • 10,000 MW generating capacity • 85% of generation capacity currently contracted • Investment grade credit ratings
Slide 4: Alberta PPA Assets
Alberta PPAAssets OPLAR CREEK 4 (FORT McMURRAY, AB) 1) Wabamun : SSouw u Seas! s FORT SASKATCHEWAN ‘Sundance n FORT SASKATCHEWAN, AB) 2 : “13 MW total 2,020 MW (30% owned) MERIDIAN 3 Keephills CENTENNIAL 1 & 2 (LLOYOMINSTER, AB) 766 MW (KEEPHILLS, AB) 220 MW 800 MW ‘4 Sheerness: pesbeashiend Leuk GE
Slide 5: How we make money
How we make money Be cos im ize ain tain Focus effecti t Max Grow M g on ve asset s stron e people a la nc b sheet
Slide 6: Who we are
Who we are (in percent) Capacity by Capacity by Contract geography fuel type cover 10 12 11 24 29 37 52 66 59 Canada Coal AB PPA U.S. Gas Other contract Mexico & Australia Hydro & renewables Spot Target: 1/3, 1/3, 1/3 1/3, 1/3, 1/3 75%+ under contract
Slide 7: Portfolio composition
Portfolio composition Last few years have focused on capacity growth Expected MW ROE 4000 3500 3000 2500 2000 1500 1000 500 0 0 to 6 to 11 to 16 to 21 to 26 to 31 to 36 to 40+ 5 10 15 20 25 30 35 40 Age of plant
Slide 8: Consolidation phase
Consolidation phase Growth • Genesee 3: 2005 • Wind: 50 - 100 MW / year Consolidation • Asset by asset review • Further strengthen B/S • Invest in IT and maintenance
Slide 9: Operations
Operations Availability • Target 90% overall • Success at Centralia • Exceed Alberta PPA targets Maintenance plan • Become market responsive • Optimize $/MW (operating + CAPEX) • Alberta PPAs >$ than historical spend
Slide 10: Financial goals
Financial goals Strong Credit Strong Share • Maintain strong balance sheet Rating Price • Maintain strong credit rating • Grow earnings and hold dividend Maintain Dividend Key targets* YTD June 30 Target Debt to invested capital 52.0% 50.0% Cash flow to interest coverage 3.7 x 3.6 x *including non-r
Slide 11: Quarterly results
Quarterly results ($ millions) YTD June 30 2003 Change Revenues $ 1157 +53% Earnings from continuing operations $ 72 +23% EPS from continuing operations ($) $ 0.40 +18% Net EPS (including gain on sale) ($) $ 0.40 -62% Cash flow from operating activities $ 444 +69%
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