TransAlta (TA) Investor presentation summary

Company overview and portfolio

• Enterprise value of $10.5 billion and market capitalization of $6.2 billion as of January 2024.

• Operates 88 generating facilities across Canada, the US, and Australia, totaling ~9,000 MW.

• Approximately 50% of adjusted EBITDA is attributable to renewables, expected to increase.

• Portfolio includes wind, solar, hydro, battery, and natural gas assets.

• 52% of total fleet capacity is contracted, with 100% contracted in Canada and Australia.

Strategic growth and transformation

• Added 800 MW of wind and solar and increased development pipeline by 2 GW since 2021.

• Acquired Heartland Generation, adding 1.7 GW of flexible capacity and significant contracted revenue.

• Retired 800 MW of thermal generation and increased economic ownership through TransAlta Renewables acquisition.

• Pursuing redevelopment of Centralia site and expanding data center opportunities.

• Strategic priorities to 2028 include optimizing Alberta portfolio, executing clean electricity growth, and leading in ESG.

Financial performance and outlook

• Free cash flow increased by 64% and adjusted EBITDA by 29% from 2021 to 2023.

• 2024 expected free cash flow at upper end of $450–$600 million guidance.

• Adjusted EBITDA for nine months ended Sept. 30, 2024, was $968 million, trending toward $1.15–$1.3 billion for the year.

• Repurchased 13.5 million shares, delivering 94% of $150 million 2024 program.

• Maintains strong liquidity with $1.8 billion available as of Sept. 30, 2024.