TransAlta Key Messages 9,000 MW spanning multiple fuels and Leading Diversified Power markets Generation Company 65 facilities 2,200 MW of renewable energy 100 years of operating history Proven Track Record Disciplined approach…
Our Business Canadas largest publicly traded wholesale power generator & marketer with over 100 Coal: years of operating experience 4,930 MW Diversified asset base with 65 facilities strategically positioned in Canada, Western…
Positioned For Growth & Value Creation Objectives for driving long-term value for shareholders Optimize base business Invest in profitable growth Re-contract to stabilize cash flows Growth through acquisitions and and extend asset…
Executing the Strategy Strategic initiatives since 2013 Created TransAlta Renewables Inc. as a competitive growth vehicle Re-contracted 835 MW of capacity under long-term agreements and expanded C&I Energy Services business Advanced…
TransAltas 5-Year Growth Track Record Disciplined growth with a focus on contracted assets 2008 2009 2010 2010 2011 80 MW 694 MW 123 MW 132 MW 19 MW Kent Hills Canadian Hydro Ardenville / Kent Hills 2 Summerview 2 / Blue Trail…
Creation of TransAlta Renewables One of the Largest Publicly-Traded Renewable Companies in Canada 29 29 1,255 1,255 1.31.3 billion 1.3 2.0 2.0 2.0 29 renewable power generation renewable facilities power 1,255 generation…
Hedges mitigating impact of low power prices Year-over-year electricity prices Total portfolio contractedness1 /MWh MW 90% 84% 80% 78% 2014 Contracted prices AB 55/MWh Pac 40/MWh 2015 Contracted prices AB 50 - 55/MWh Pac…
2014 Objectives Target Status Financial EBITDA: 1,015 - 1,065 million 523 million year to date FFO: 743 - 793 million 392 million year to date Free Cash Flow: 293 - 343 million 158 million year-to-date Refinance maturities and fund…
Funding Update Reduced Debt by 300 Million Completed the sale of CE Generation and closed a secondary offering of TransAlta Renewables Inc. common shares for total net proceeds of 320 million with proceeds used to repay debt…
Markets and Growth 16
Markets where TransAlta is positioned to grow Alberta Western U.S. GDP growth of 3 4% per year 1.4% annual load growth over next 6,000 MW of new generation by ten years 20221 California: 15,000 MW by 2020 MWs grow faster than GDP…
Business Highlights South Hedland Reached an agreement to build, own and operate a 150 MW combined gas power station in South Hedland, Western Australia The project is fully contracted for 25 years - PPAs are in place with Horizon…
Business Highlights Other growth projects Creating value through Growth Construction of natural gas pipeline in Western Australia with joint venture partner planned to start in August. Expected COD date of December 31st 2014…
Alberta Strong Fundamentals Alberta Interconnected Electric System (AIES) Alberta continues to see Reserve Margin, 2000 - 20191 considerable demand growth due to industrial and mining activities, and 45% their indirect impacts…
Historical Power Prices in Alberta Since deregulation, AB Pool prices have averaged 65 / MWh Source: AESO 21
Alberta Forward Market AB forward market is a poor predictor of future spot market settles Forward prices tend to reflect spot fundamentals not future fundamentals Average annual Alberta power prices compared to historical forward…
Environmental strategy Canadian federal regulations amended in 2012 designate useful life of coal plants as 50 years Weighted average life of TransAltas Alberta coal fleet is 17 years Flexibility provisions enabling unit substitution…
Long-term Upside Potential Significant increase in cash flows once Alberta legislated PPAs expire Illustrative representation of estimated average EBITDA over period. Actual EBITDA could vary from those shown due to a number of…
Focused on Creating Value Integrated approach to driving long-term shareholder value Diversified and highly contracted portfolio Attractive and sustainable dividend Strong balance sheet and free cash flow Well positioned for…
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