TransAlta (NYSE:TAC) 2026 Investor Day March 23, 2026 09:00 AM ET Company ParticipantsBen Harris - Manager of Investor RelationsBen Pham - Managing DirectorChris Fralick - EVP of GenerationJoel Hunter - EVP of Finance and CFOJohn Kousinioris - President and CEOJohn Mould - Managing DirectorMark Jarvi - Managing DirectorMaurice Choy - Managing DirectorRobert Hope - Managing DirectorStephanie Paris - VP of Investor Relations and Corporate StrategyStephanie ParisGood morning, everyone and welcome to TransAlta' ...

2026 Investor Day MARCH 23, 2026 Keephills, Alberta Forward-looking statements and non-IFRS measures This presentation includes "forward-looking information," within the meaning of applicable Canadian securities laws, and "forward-looking statements," within the meaning of applicable United States securities laws, including the Private Securities Litigation Reform Act of 1995 (collectively referred to herein as "forward-looking statements"). Forward-looking statements are not facts, but only predictions and ...

CALGARY, Alberta, March 23, 2026 (GLOBE NEWSWIRE) -- TransAlta Corporation (TransAlta or the Company) (TSX: TA) (NYSE: TAC) is pleased to host its 2026 Investor Day today, in Toronto and virtually. A subset of TransAlta's executive leadership team will discuss the Company’s outlook for the Alberta power market, along with its strategic priorities, financial position, and long-term path for rateable, attractive growth. "TransAlta is well positioned to grow in our core geographies where our existing assets, o ...

CALGARY, Alberta, March 17, 2026 (GLOBE NEWSWIRE) -- TransAlta Corporation (TransAlta or the Company) (TSX: TA) (NYSE: TAC) confirms that its subsidiary, TransAlta Centralia Generation LLC, has received an order (The Order) from the United States Department of Energy. The Order mandates that Centralia Unit 2 in Washington State remain available for operation, for a period of 90 days, until June 14, 2026. TransAlta is currently evaluating the Order and will work with the state and federal governments in rela ...

Core Viewpoint - TransAlta Corporation announced the conversion details of its preferred shares, indicating that no Series A Shares will convert to Series B Shares, while a portion of Series B Shares will convert to Series A Shares on March 31, 2026 [1]. Group 1: Share Conversion Details - None of the 9,629,913 currently outstanding Series A Shares will be converted into Series B Shares on March 31, 2026 [1]. - A total of 1,148,549 of the 2,370,087 currently outstanding Series B Shares will be converted into Series A Shares on the same date [1]. - Following these conversions, TransAlta will have 10,778,462 Series A Shares and 1,221,538 Series B Shares outstanding [1]. Group 2: Company Overview - TransAlta is one of Canada's largest publicly traded power generators, providing reliable electricity across Canada, the United States, and Western Australia [3]. - The company has over 100 years of experience in operating and evolving essential energy infrastructure [3]. - TransAlta's diverse technology portfolio and disciplined execution enable it to deliver dependable power while adapting to changing energy systems [3].

Group 1 - TransAlta Corporation reported strong 2025 results with free cash flow of $514 million, exceeding the midpoint of its annual outlook despite lower Alberta power prices, leading to an 8% increase in the common share dividend [1][5] - The company advanced key growth initiatives in Q4, including a Memorandum of Understanding (MoU) with Canada Pension Plan Investments and Brookfield for data center development in Alberta, and the acquisition of Far North Power Corporation, adding 310 MW of natural gas capacity in Ontario [2] - TransAlta expects adjusted EBITDA for 2026 to be between $950 and $1,050 million, supported by a diversifying fleet and anticipated load growth from data centers, while achieving a 76% reduction in GHG emissions since 2015 [3]

Core Viewpoint - TransAlta Corporation announced it will not redeem its outstanding Series A and Series B Preferred Shares on March 31, 2026, allowing shareholders to choose between retaining their shares or converting them to the other series [1]. Summary by Sections Series A Shares - Holders of Series A Shares can either retain their shares to receive a fixed quarterly dividend of 1.19550% (annualized 4.78200%) for five years from March 31, 2026, or convert them into Series B Shares at a one-to-one ratio, receiving a floating quarterly dividend of 1.05236% (annualized 4.22100%) for the three-month period starting March 31, 2026 [2][5]. Series B Shares - Holders of Series B Shares can choose to retain their shares for a floating quarterly dividend of 1.05236% (annualized 4.22100%) for the same three-month period or convert them into Series A Shares at a one-to-one ratio, receiving the fixed quarterly dividend of 1.19550% (annualized 4.78200%) for five years [3][6]. Conversion Conditions - The conversion rights are subject to conditions, including the requirement that if fewer than 1,000,000 shares of either series remain outstanding after conversion, the remaining shares will automatically convert to the other series [4]. Currently, there are 9,629,913 Series A Shares and 2,370,087 Series B Shares outstanding [4]. Conversion Process - Shareholders must notify their intention to convert shares by 3:00 p.m. (MST) / 5:00 p.m. (EST) on March 16, 2026. If no notice is received, shares will not be converted unless automatic conversion applies [7][8]. Future conversion opportunities will occur every five years, with the next one on March 31, 2031 [8]. Company Overview - TransAlta Corporation is one of Canada's largest publicly traded power generators, providing reliable electricity across Canada, the United States, and Western Australia. The company has over 100 years of experience in operating essential energy infrastructure [9].

Financial Data and Key Metrics Changes - TransAlta reported Adjusted EBITDA of CAD 1.1 billion and Free Cash Flow of CAD 450 million, or CAD 1.73 per share, with an average fleet availability of 92.3% for 2025 [5][19] - The company experienced lower power pricing in Alberta, with the average spot price dropping to CAD 44 per megawatt hour in 2025 from CAD 63 per megawatt hour in 2024 [19][20] - Free Cash Flow for the fourth quarter was CAD 93 million, CAD 47 million higher than the same period last year [17] Business Line Data and Key Metrics Changes - The hydro segment generated Adjusted EBITDA of CAD 285 million, while the wind and solar segment delivered CAD 338 million, a 7% increase compared to 2024 [17][18] - The gas segment's Adjusted EBITDA decreased to CAD 438 million due to lower power prices and higher operating costs [18] - The energy transition segment delivered CAD 100 million of Adjusted EBITDA, increasing year-over-year due to lower purchased power costs [18] Market Data and Key Metrics Changes - The Alberta spot power price averaged CAD 44 per megawatt hour in 2025, significantly lower than the previous year's average [19] - The gas fleet captured an average price of CAD 66 per megawatt hour, a 50% premium to the average spot price [20] - The hydro fleet realized an average price of CAD 58 per megawatt hour, a 32% premium to the average spot price [20] Company Strategy and Development Direction - TransAlta is focusing on advancing its data center opportunity at Keephills, with a memorandum of understanding (MOU) established with CPP Investments and Brookfield [10][11] - The company aims to maximize the value of its legacy thermal sites while pursuing strategic M&A opportunities [28][30] - The strategic priorities for 2026 include improving safety performance, delivering Adjusted EBITDA and Free Cash Flow within guidance ranges, and advancing the cold-to-gas conversion at Centralia [28] Management's Comments on Operating Environment and Future Outlook - Management noted that lower power pricing and subdued market volatility impacted the operating environment in 2025 [5] - The outlook for 2026 anticipates Adjusted EBITDA in the range of CAD 950 million to CAD 1.1 billion, with Free Cash Flow expected between CAD 350 million and CAD 450 million [25][26] - Management expressed confidence in the company's ability to fund growth opportunities through existing Free Cash Flow generation and incremental debt capacity [80] Other Important Information - The board approved an 8% increase in the common share dividend to CAD 0.28 per share, marking the seventh consecutive annual dividend increase [8] - The company achieved record safety performance with a total recordable injury frequency rate of 0.12, significantly lower than the previous year's rate [6] Q&A Session Summary Question: Details on the data center opportunity and ramp-up expectations - Management indicated that speed to power remains a priority and that definitive documents are expected to be completed within the year [33][34] Question: Terms of risk sharing in the MOU - Management refrained from disclosing specific terms but emphasized the commercial framework's appropriateness [35][36] Question: Update on the M&A market and views on gas and renewable assets - Management noted that the M&A market remains active, with opportunities in both renewable and thermal generation assets [52][53] Question: Key gating items to move from MOU to binding agreement - Management stated that definitive agreements are expected to be completed within the year, with ongoing engagement with partners [59][60] Question: Funding capacity for upcoming projects - Management expressed confidence in the ability to fund growth opportunities through existing Free Cash Flow and various financial levers [80][81]

Financial Data and Key Metrics Changes - TransAlta reported Adjusted EBITDA of CAD 1.1 billion for FY 2025, with free cash flow of CAD 450 million or CAD 1.73 per share, reflecting a strong performance despite lower power pricing in Alberta [5][19] - The total recordable injury frequency rate improved to 0.12 in 2025 from 0.56 in 2024, indicating record safety performance [6] - Free cash flow for Q4 was CAD 93 million, CAD 47 million higher than the same period last year, attributed to lower sustaining capital expenditures [17] Business Line Data and Key Metrics Changes - The hydro segment generated Adjusted EBITDA of CAD 285 million, driven by lower spot and ancillary power prices [17] - The wind and solar segment delivered Adjusted EBITDA of CAD 338 million, a 7% increase compared to 2024, due to higher wind resources and contributions from Oklahoma wind assets [18] - The gas segment's Adjusted EBITDA decreased to CAD 438 million, primarily due to lower power prices in Alberta and higher operating costs [18] - The energy transition segment's Adjusted EBITDA increased to CAD 100 million, benefiting from lower purchased power costs [18] Market Data and Key Metrics Changes - Alberta's average spot price for power was CAD 44 per MWh in 2025, down from CAD 63 per MWh in 2024, due to increased generation from new gas, wind, and solar supply [19] - The gas fleet captured an average price of CAD 66 per MWh, a 50% premium to the average spot price, while the hydro fleet realized an average price of CAD 58 per MWh, a 32% premium [20] Company Strategy and Development Direction - The company aims to advance its data center opportunity at Keephills, leveraging its existing infrastructure and partnerships with CPP Investments and Brookfield [12][27] - TransAlta plans to optimize its Alberta portfolio by mothballing certain units while maintaining long-term optionality [6] - The company is focused on strategic M&A opportunities, as demonstrated by the acquisition of Far North Power, which adds to its diversified portfolio [15][48] Management's Comments on Operating Environment and Future Outlook - Management acknowledged challenges from lower power pricing and market volatility but expressed confidence in the company's strategic direction and financial flexibility [5][19] - The outlook for 2026 anticipates Adjusted EBITDA in the range of CAD 950 million to CAD 1.1 billion, with free cash flow expected between CAD 350 million and CAD 450 million [24][25] - Management emphasized the importance of hedging strategies and the anticipated increase in load from data centers to support future growth [23][26] Other Important Information - The board approved an 8% increase in the common share dividend to CAD 0.28 per share, marking the seventh consecutive annual dividend increase [9] - The company successfully integrated Heartland into its operations, enhancing contracted cash flows and synergies [7] Q&A Session Summary Question: Details on the data center opportunity and ramp-up timeline - Management indicated that specifics on the MOU are restricted but emphasized the priority of speed to power for customers [31][32] Question: Risk sharing terms in the MOU - Management refrained from disclosing specific terms but expressed confidence in the commercial framework established with partners [33][34] Question: Update on the M&A market and gas/renewable assets - Management noted an active M&A market with opportunities in both renewable and thermal generation assets [48][49] Question: Key gating items for moving from MOU to binding agreement - Management highlighted the need for definitive agreements and expressed confidence in progressing quickly [45][56] Question: Funding capacity for upcoming projects - Management stated that existing free cash flow generation and incremental debt capacity would support funding needs for growth opportunities [75][76]

Financial Data and Key Metrics Changes - TransAlta reported Adjusted EBITDA of CAD 1.1 billion and Free Cash Flow of CAD 450 million, or CAD 1.73 per share, with an average fleet availability of 92.3% [4][18] - The company experienced lower power pricing in Alberta, which impacted its operating environment, leading to Adjusted EBITDA being at the lower end of expectations [4][18] - The total recordable injury frequency rate improved to 0.12 from 0.56 in 2024, surpassing the target of 0.37 [5] Business Line Data and Key Metrics Changes - The hydro segment generated Adjusted EBITDA of CAD 285 million, driven by lower spot and ancillary power prices [16] - The wind and solar segment delivered Adjusted EBITDA of CAD 338 million, a 7% increase compared to 2024, due to higher wind resources and contributions from Oklahoma wind assets [16] - The gas segment's Adjusted EBITDA decreased to CAD 438 million, primarily due to lower power prices in Alberta and higher operating costs [17] - The energy transition segment delivered CAD 100 million of Adjusted EBITDA, increasing year-over-year due to lower purchased power costs [17] Market Data and Key Metrics Changes - The average spot price in Alberta was CAD 44 per megawatt hour in 2025, down from CAD 63 per megawatt hour in 2024 [18] - The gas fleet captured an average price of CAD 66 per megawatt hour, a 50% premium to the average spot price [19] - The hydro fleet achieved an average realized price of CAD 58 per megawatt hour, a 32% premium to the average spot price [19] Company Strategy and Development Direction - TransAlta aims to advance its data center opportunity at Keephills, establishing a framework for phased development with CPP Investments and Brookfield [9][10] - The company is focused on maximizing the value of its legacy thermal sites while pursuing strategic M&A opportunities [27][28] - The board approved an 8% increase in the common share dividend, affirming the commitment to returning value to shareholders [7] Management's Comments on Operating Environment and Future Outlook - Management noted that Alberta's spot power prices are expected to remain under pressure, impacting the merchant portfolio [25] - The company anticipates Adjusted EBITDA for 2026 to be in the range of CAD 950 million to CAD 1.1 billion, with Free Cash Flow expected between CAD 350 million and CAD 450 million [24] - Management expressed confidence in the company's ability to fund growth opportunities through existing Free Cash Flow generation and incremental debt capacity [78] Other Important Information - TransAlta fully integrated Heartland into its operations, providing additional contracted cash flows and synergies [6] - The company completed its ERP system implementation on time and on budget, enhancing operational efficiency [6] - The acquisition of Far North Power is expected to add approximately CAD 30 million of average Adjusted EBITDA per year [12] Q&A Session Summary Question: Can you share more details around the data center opportunity? - Management indicated that specifics are limited due to MOU terms but emphasized the priority of speed to power and the expectation of definitive documents being completed within the year [32][33] Question: What are the terms of risk sharing in the MOU? - Management refrained from disclosing specific terms but expressed confidence in the commercial framework established with partners [34][35] Question: Can you provide an update on the M&A market? - Management noted that the M&A market remains active, with opportunities in both renewable and thermal generation assets [51][52] Question: What is the timeline for moving from MOU to binding agreement? - Management expects definitive agreements to be completed within the year, with ongoing engagement to finalize terms [57][58] Question: How will Alberta's interties with neighboring power markets influence the outlook? - Management is optimistic about the opportunities created by interties, particularly for load growth requirements in the Pacific Northwest and beyond [102]