[Forward-Looking Statements](index=2&type=section&id=Forward-Looking%20Statements) This section details the company's forward-looking statements, associated assumptions, and material risk factors - This section outlines the forward-looking statements within the MD&A, which are based on management's current estimates and assumptions, and cautions that actual results may differ materially[3](index=3&type=chunk) - Key forward-looking topics include the Clean Electricity Growth Plan, projects under construction, remediation of Kent Hills facilities, carbon compliance costs, and the **2022 financial outlook**[4](index=4&type=chunk) - The statements are based on assumptions such as Alberta spot prices of **$90-$100/MWh** and Mid-Columbia spot prices of **US$55-$65/MWh** for 2022[5](index=5&type=chunk) - Significant risks include the COVID-19 pandemic, market price fluctuations, operational risks like unplanned outages, and equipment failure, such as the issues at the **Kent Hills wind facilities**[6](index=6&type=chunk) [Description of the Business](index=4&type=section&id=Description%20of%20the%20Business) The company operates a diversified power generation portfolio across multiple regions and fuel types - TransAlta is a major Canadian power generator with a diversified portfolio of assets using **water, wind, solar, and natural gas**[9](index=9&type=chunk) Consolidated Facility Ownership as of March 31, 2022 | Region | Fuel Type | Gross Installed Capacity (MW) | Number of Facilities | Weighted Average Contract Life (Years) | | :--- | :--- | :--- | :--- | :--- | | **Alberta** | Hydro, Wind, Solar | 1,470 | 30 | 2 (primarily merchant) | | | Gas & Energy Transition | 2,073 | 8 | | | **Canada (Excl. Alberta)** | Hydro, Wind, Solar, Gas | 1,487 | 21 | 7 | | **US** | Wind, Solar, Gas, Energy Transition | 1,219 | 10 | 7 | | **Australia** | Gas | 450 | 6 | 17 | | **Total** | **All** | **6,699** | **75** | **5** | [Highlights](index=5&type=section&id=Highlights) The company's Q1 2022 performance shows a significant increase in net earnings despite lower adjusted EBITDA and FCF Q1 2022 vs Q1 2021 Financial Highlights | Metric | Q1 2022 | Q1 2021 | | :--- | :--- | :--- | | Revenues | $735M | $642M | | Adjusted EBITDA | $266M | $310M | | Net earnings attributable to common shareholders | $186M | ($30M) | | Cash flow from operating activities | $451M | $257M | | Free cash flow (FCF) | $115M | $129M | | Net earnings per share, basic and diluted | $0.69 | ($0.11) | - **Adjusted EBITDA decreased by $44 million** to $266 million, largely due to lower performance in the Gas, Energy Transition, Hydro, and Energy Marketing segments[26](index=26&type=chunk) - **Net earnings attributable to common shareholders increased significantly to $186 million** from a loss of $30 million, driven by higher revenues and lower carbon compliance costs[27](index=27&type=chunk) - **Free Cash Flow (FCF) decreased by $14 million** to $115 million, primarily due to lower adjusted EBITDA and higher distributions to non-controlling interests[29](index=29&type=chunk) [Significant and Subsequent Events](index=7&type=section&id=Significant%20and%20Subsequent%20Events) Key strategic developments include new project PPAs, contract extensions, and an ESG rating upgrade - Key developments include the **Mount Keith Transmission Expansion**, **Sarnia Contract Extensions**, a new **PPA for the Garden Plain Wind** project, a long-term **PPA with Meta for the Horizon Hill Wind Project**, an **MSCI ESG Rating Upgrade to 'A'**, and the repurchase of **1.4 million common shares**[31](index=31&type=chunk)[32](index=32&type=chunk)[37](index=37&type=chunk) [Performance by Segment](index=8&type=section&id=Performance%20by%20Segment%20with%20Supplemental%20Geographical%20Information) This section analyzes the financial and operational performance across the company's realigned business segments [Alberta Electricity Portfolio](index=9&type=section&id=Alberta%20Electricity%20Portfolio) The Alberta portfolio's gross margin declined due to weaker market conditions and higher natural gas costs Alberta Electricity Portfolio Performance (Q1 2022 vs Q1 2021) | Metric | Q1 2022 | Q1 2021 | | :--- | :--- | :--- | | Total Production (GWh) | 2,576 | 2,914 | | Revenues | $275M | $301M | | Gross Margin | $161M | $180M | Key Alberta Market Metrics (Q1 2022 vs Q1 2021) | Metric | Q1 2022 | Q1 2021 | | :--- | :--- | :--- | | Spot power price average ($/MWh) | $90 | $95 | | Natural gas price (AECO) ($/GJ) | $4.50 | $2.89 | | Realized merchant power price ($/MWh) | $107 | $103 | | Fuel and purchased power ($/MWh) | $56 | $35 | | Carbon compliance cost ($/MWh) | $9 | $19 | - **Carbon compliance costs per MWh decreased significantly from $19 to $9**, primarily due to the shift from coal to natural gas, despite an increase in the carbon tax price[55](index=55&type=chunk) [Segmented Financial Performance and Operating Results](index=11&type=section&id=Segmented%20Financial%20Performance%20and%20Operating%20Results) Overall adjusted EBITDA declined, driven by lower results in most segments except for Wind and Solar - The company realigned its operating segments in Q4 2021 to reflect its strategic focus on clean energy, creating new **'Gas' and 'Energy Transition' segments**[57](index=57&type=chunk)[58](index=58&type=chunk) Adjusted EBITDA by Segment (Q1 2022 vs Q1 2021) | Segment | Q1 2022 Adjusted EBITDA | Q1 2021 Adjusted EBITDA | | :--- | :--- | :--- | | Hydro | $61M | $77M | | Wind and Solar | $89M | $76M | | Gas | $102M | $106M | | Energy Transition | $5M | $16M | | Energy Marketing | $27M | $43M | | Corporate and Other | ($18M) | ($8M) | | **Total** | **$266M** | **$310M** | [Hydro](index=12&type=section&id=Hydro) Adjusted EBITDA for the Hydro segment decreased due to lower ancillary service pricing in Alberta - **Adjusted EBITDA decreased by $16 million to $61 million**, primarily due to lower ancillary service pricing in the Alberta market and higher OM&A costs[69](index=69&type=chunk) - **Availability increased to 96.7%** from 91.9% in Q1 2021 due to lower planned outages, and production rose slightly by 12 GWh[66](index=66&type=chunk)[67](index=67&type=chunk) [Wind and Solar](index=13&type=section&id=Wind%20and%20Solar) The Wind and Solar segment's adjusted EBITDA grew, driven by new assets and liquidated damages - **Adjusted EBITDA increased by $13 million to $89 million**, driven by incremental revenue from new facilities and liquidated damages from turbine performance[75](index=75&type=chunk) - **Availability decreased significantly to 78.7%** from 95.1% due to the unplanned outage at the Kent Hills facilities and operational issues at the new Windrise facility[73](index=73&type=chunk) [Gas](index=14&type=section&id=Gas) The Gas segment's adjusted EBITDA saw a slight decrease from higher fuel costs despite better merchant pricing - **Adjusted EBITDA decreased slightly by $4 million to $102 million**, mainly due to higher natural gas prices, partially offset by higher realized merchant pricing[83](index=83&type=chunk) - **Availability improved to 93.8%** from 85.0% due to fewer planned outages following the completion of coal-to-gas conversions[81](index=81&type=chunk) [Energy Transition](index=15&type=section&id=Energy%20Transition) The Energy Transition segment's EBITDA declined significantly following the retirement of coal units - **Adjusted EBITDA decreased by $11 million to $5 million**, primarily due to lower production from the retirement of Keephills Unit 1 and higher coal costs[90](index=90&type=chunk) - **Gross installed capacity decreased significantly** from 1,879 MW to 784 MW year-over-year due to the retirement of coal units[86](index=86&type=chunk) [Energy Marketing](index=16&type=section&id=Energy%20Marketing) Energy Marketing's adjusted EBITDA normalized after an exceptionally strong performance in the prior year - **Adjusted EBITDA decreased by $16 million to $27 million**, as Q1 2021 results benefited from exceptional short-term market volatility[94](index=94&type=chunk) [Corporate](index=16&type=section&id=Corporate) Corporate costs increased due to the absence of a prior-year wage subsidy and swap valuation changes - Corporate overhead costs, represented as a negative adjusted EBITDA, **increased by $10 million to ($18) million**, primarily due to the receipt of the Canada Emergency Wage Subsidy (CEWS) in 2021[95](index=95&type=chunk) [Strategy and Capability to Deliver Results](index=17&type=section&id=Strategy%20and%20Capability%20to%20Deliver%20Results) The company outlines its Clean Electricity Growth Plan and the robust project pipeline supporting its strategic goals [Clean Electricity Growth Plan](index=17&type=section&id=Clean%20Electricity%20Growth%20Plan) The company is executing its five-year growth plan to add 2 GW of renewables and is ahead of schedule - The company's goal is to be a leading customer-centered electricity company focused on growing its portfolio of **high-quality generation facilities with stable cash flows**[100](index=100&type=chunk) Progress on Strategic Targets | Goal | Target | Status | Progress Summary | | :--- | :--- | :--- | :--- | | **Accelerate Growth** | Deliver 2 GW of renewable capacity by 2025 | Ahead of Plan | 800 MW cumulative progress towards target | | | Deliver $250M incremental annual EBITDA | Ahead of Plan | ~$135M cumulative progress towards target | | **Expand Pipeline** | Expand development pipeline to 5 GW by 2025 | On track | Evaluating opportunities to add new development sites | | **Financial Strength** | Maintain strong cash flow and capital allocation | On track | Liquidity of $2.4B as of March 31, 2022; returned $18M via share buybacks in Q1 | [Growth Pipeline](index=19&type=section&id=Growth%20Pipeline) The growth pipeline includes over 678 MW under construction and a multi-gigawatt development portfolio Projects Under Construction | Project | Type | Region | MW | Target Completion | Average Annual EBITDA | | :--- | :--- | :--- | :--- | :--- | :--- | | Garden Plain | Wind | AB, Canada | 130 | H2 2022 | $14M - $18M | | White Rock Wind | Wind | OK, US | 300 | H2 2023 | US$42M - US$46M | | Horizon Hill | Wind | OK, US | 200 | H2 2023 | US$27M - US$30M | | Northern Goldfields Solar | Hybrid Solar | WA, Australia | 48 | H2 2022 | AU$9M - AU$10M | | Mount Keith 132kV Expansion | Transmission | WA, Australia | n/a | H2 2023 | AU$6M - AU$7M | - The company has **140 MW of projects in advanced-stage development**, including the Tempest Wind project in Alberta[113](index=113&type=chunk) - The early-stage development pipeline totals between **2,205 MW and 2,805 MW**, with projects spanning wind, solar, battery storage, and pumped hydro[114](index=114&type=chunk) [2022 Financial Outlook](index=21&type=section&id=2022%20Financial%20Outlook) The company reaffirms its 2022 financial targets, supported by strong merchant pricing and updated assumptions 2022 Financial Targets | Measure | 2022 Target | 2021 Actual | | :--- | :--- | :--- | | Adjusted EBITDA | $1,065M - $1,185M | $1,263M | | Free Cash Flow (FCF) | $455M - $555M | $562M | Updated 2022 Power and Gas Price Assumptions | Market | Original Expectations | Updated Expectations | | :--- | :--- | :--- | | Alberta Spot ($/MWh) | $80 - $90 | $90 - $100 | | Mid-C Spot (US$/MWh) | US$45 - US$55 | US$55 - US$65 | | AECO Gas Price ($/GJ) | $3.60 | $4.50 - $5.50 | - The company is tracking against its stated 2022 guidance, with **strong merchant pricing expected to continue** in Alberta and the Pacific Northwest[119](index=119&type=chunk)[121](index=121&type=chunk) - The estimated net capital expenditure for the **Kent Hills foundation rehabilitation has increased to approximately $120 million**, with a return to service expected in H2 2023[124](index=124&type=chunk) [Selected Quarterly Information](index=23&type=section&id=Selected%20Quarterly%20Information) This section presents historical quarterly financial data, highlighting seasonality and key operational impacts - The company's results are seasonal, with higher maintenance costs in the spring and fall, while **hydro generation is highest in the spring and wind resources are stronger in the winter**[130](index=130&type=chunk) Quarterly Financial Data (Q2 2021 - Q1 2022) | Metric | Q2 2021 | Q3 2021 | Q4 2021 | Q1 2022 | | :--- | :--- | :--- | :--- | :--- | | Revenues | $619M | $850M | $610M | $735M | | Adjusted EBITDA | $302M | $381M | $270M | $266M | | Net earnings (loss) attributable to common shareholders | ($12M) | ($456M) | ($78M) | $186M | - Quarterly net earnings have been impacted by key events, including the **extended outage at Kent Hills**, the retirement of Keephills Unit 1, and lower carbon costs in Q1 2022[134](index=134&type=chunk) [Financial Position](index=25&type=section&id=Financial%20Position) The company's financial position strengthened with an increase in total assets and equity as of Q1 2022 Consolidated Statement of Financial Position (Changes) | Item | March 31, 2022 | Dec. 31, 2021 | Change | | :--- | :--- | :--- | :--- | | Total Assets | $9,425M | $9,226M | $199M | | Total Liabilities | $6,785M | $6,633M | $152M | | Total Equity | $2,640M | $2,593M | $47M | - **Working capital increased to $311 million** from $266 million, mainly due to higher cash from operations and collateral received[137](index=137&type=chunk) - **Non-current liabilities decreased by $162 million**, primarily due to a $101 million decrease in decommissioning provisions resulting from higher discount rates[141](index=141&type=chunk) [Financial Capital](index=27&type=section&id=Financial%20Capital) This section details the company's capital structure, liquidity position, and returns to capital providers [Capital Structure and Liquidity](index=27&type=section&id=Capital%20Structure%20and%20Liquidity) The company maintains a strong liquidity position of $2.4 billion and a balanced capital structure Capital Structure as of March 31, 2022 | Component | Amount ($M) | % of Total Capital | | :--- | :--- | :--- | | Total consolidated net debt | 2,342 | 43% | | Non-controlling interests | 945 | 18% | | Exchangeable preferred securities | 400 | 7% | | Equity attributable to shareholders | 1,695 | 32% | | **Total Capital** | **5,382** | **100%** | - The company has **$1,067 million of debt maturing between 2022 and 2024** and expects to refinance the senior notes maturing in 2022[147](index=147&type=chunk) - Total available capacity under committed credit facilities was **$1,217 million** as of March 31, 2022[148](index=148&type=chunk) [Returns to Providers of Capital and Non-Controlling Interests](index=29&type=section&id=Returns%20to%20Providers%20of%20Capital%20and%20Non-Controlling%20Interests) Net interest expense remained stable while earnings attributable to non-controlling interests increased - **Net interest expense was $67 million** for Q1 2022, compared to $63 million for Q1 2021[153](index=153&type=chunk) - As of March 31, 2022, the company owns **60.1% of TransAlta Renewables** and **50.01% of TA Cogen**, both of which are consolidated[155](index=155&type=chunk)[156](index=156&type=chunk) - Reported earnings attributable to non-controlling interests **increased by $11 million to $20 million** in Q1 2022 compared to the same period in 2021[158](index=158&type=chunk) [Other Consolidated Analysis](index=30&type=section&id=Other%20Consolidated%20Analysis) This section provides an analysis of the company's consolidated cash flows [Cash Flows](index=30&type=section&id=Cash%20Flows) Operating cash flow increased significantly due to favorable working capital changes Consolidated Statement of Cash Flows (Q1 2022 vs Q1 2021) | Cash Flow Activity | Q1 2022 ($M) | Q1 2021 ($M) | | :--- | :--- | :--- | | Operating activities | 451 | 257 | | Investing activities | (72) | (111) | | Financing activities | (106) | (200) | | **Cash and cash equivalents, end of period** | **1,221** | **648** | - **Cash used in financing activities decreased by $94 million**, mainly due to lower drawings under the company's credit facilities, partially offset by higher share repurchases[165](index=165&type=chunk)[172](index=172&type=chunk) [Additional IFRS Measures and Non-IFRS Measures](index=31&type=section&id=Additional%20IFRS%20Measures%20and%20Non-IFRS%20Measures) This section defines and reconciles non-IFRS measures used to evaluate core business performance and leverage [Reconciliation of Non-IFRS Measures](index=31&type=section&id=Reconciliation%20of%20Non-IFRS%20Measures) This section reconciles key non-IFRS measures like Adjusted EBITDA and FCF to their IFRS counterparts - Key non-IFRS financial measures used by the company include **Adjusted EBITDA, Funds from Operations (FFO), and Free Cash Flow (FCF)** to evaluate performance[171](index=171&type=chunk) Reconciliation of Cash Flow from Operating Activities to FFO and FCF (Q1 2022) | Metric | Amount ($M) | | :--- | :--- | | Cash flow from operating activities | 451 | | Change in non-cash operating working capital | (284) | | Adjustments | 19 | | **Funds from Operations (FFO)** | **186** | | Deduct: Sustaining capital, dividends, etc | (71) | | **Free Cash Flow (FCF)** | **115** | Reconciliation of Adjusted EBITDA to FFO and FCF (Q1 2022) | Metric | Amount ($M) | | :--- | :--- | | Adjusted EBITDA | 266 | | Provisions, Interest, Taxes, Other | (80) | | **Funds from Operations (FFO)** | **186** | | Deduct: Sustaining capital, dividends, etc | (71) | | **Free Cash Flow (FCF)** | **115** | [Key Financial Non-IFRS Ratios](index=38&type=section&id=Key%20Financial%20Non-IFRS%20Ratios) The company's leverage ratios, including Adjusted Net Debt to Adjusted EBITDA, improved during the quarter Adjusted Net Debt to Adjusted EBITDA Ratio | Metric | March 31, 2022 | Dec. 31, 2021 | | :--- | :--- | :--- | | Adjusted net debt | $3,013M | $3,307M | | Adjusted EBITDA (LTM) | $1,219M | $1,263M | | **Ratio (times)** | **2.5x** | **2.6x** | Deconsolidated Net Debt to Deconsolidated Adjusted EBITDA Ratio | Metric | March 31, 2022 | Dec. 31, 2021 | | :--- | :--- | :--- | | Deconsolidated net debt | $1,619M | $1,870M | | Deconsolidated adjusted EBITDA (LTM) | $848M | $852M | | **Ratio (times)** | **1.9x** | **2.2x** | - The **deconsolidated net debt to adjusted EBITDA ratio decreased** compared to year-end 2021, due to lower deconsolidated net debt from debt repayments and higher cash balances[211](index=211&type=chunk) [Critical Accounting Policies and Estimates](index=41&type=section&id=Critical%20Accounting%20Policies%20and%20Estimates) Key accounting estimates were impacted by macroeconomic factors, particularly changes in discount rates - Material changes in estimates during Q1 2022 were influenced by global economic recovery, geopolitical events, and resulting **energy price volatility**[212](index=212&type=chunk) - The provision for **decommissioning and restoration obligations decreased** during the quarter as a result of higher discount rates[213](index=213&type=chunk) - The **defined benefit pension obligation decreased from $228 million to $205 million**, also due to increases in discount rates[214](index=214&type=chunk) [Regulatory Updates](index=42&type=section&id=Regulatory%20Updates) This section covers key regulatory developments related to clean energy and carbon pricing across major markets - **Canada:** The federal government released a discussion paper on a new **Clean Electricity Standard (CES)** aiming for a net-zero electricity sector by 2035[221](index=221&type=chunk)[223](index=223&type=chunk) - **Ontario:** The IESO is conducting a medium-term RFP to procure capacity, and policy development is underway for the province's **carbon pricing system**[225](index=225&type=chunk)[227](index=227&type=chunk) - **United States:** The SEC has proposed rules to **standardize climate-related disclosures** for investors, and Congress continues to consider support for renewable energy[228](index=228&type=chunk)[229](index=229&type=chunk) - **Australia:** A national election is scheduled for May 21, 2022, but no policy proposals are expected to present **significant adverse risks** to TransAlta's performance[230](index=230&type=chunk) [Disclosure Controls and Procedures](index=43&type=section&id=Disclosure%20Controls%20and%20Procedures) Management concluded that the company's disclosure controls and internal controls over financial reporting were effective - Management, including the CEO and CFO, evaluated the effectiveness of the company's **Internal Control over Financial Reporting (ICFR)** and **Disclosure Controls and Procedures (DC&P)**[237](index=237&type=chunk) - Based on their evaluation, the CEO and CFO concluded that as of March 31, 2022, the company's **ICFR and DC&P were effective**[237](index=237&type=chunk) - The evaluation scope **excluded the recently acquired North Carolina Solar facility**, consistent with regulatory guidance for recent acquisitions[235](index=235&type=chunk)[236](index=236&type=chunk)

Financial Highlights - Adjusted EBITDA increased by 36% from $927 million in 2020 to $1,263 million in 2021[8] - Free Cash Flow increased by 57% from $358 million in 2020 to $562 million in 2021[8] - Free Cash Flow per share increased by 59% from $130 in 2020 to $207 in 2021[8,9] Growth and Strategic Initiatives - 600 MW of growth was announced in 2021, expanding across all 3 operating regions[10] - Renewables and storage accounted for 43% of generation EBITDA in 2021, compared to 35% in 2020[10] - The company has secured 30% of its 5-year Clean Electricity Growth Plan target[13] - The company expects to deliver EBITDA of $1065 - $1185 billion and FCF of $455 - $555 million in 2022[38] Alberta Portfolio and Hedging - The company has hedged 6278 GWh of energy at an average hedge price of $75/MWh for the full year 2022, representing approximately 75% of expected Alberta Gas and Energy Transition production[29] - The company has hedged 50 million GJ of natural gas at $275/GJ, representing approximately 55% of expected Alberta Gas and Energy Transition requirements[29] TransAlta Renewables - TransAlta Renewables reported Adjusted EBITDA of $463 million in 2021, consistent with $462 million in 2020[35] - CAFD was $275 million in 2021, a 10% decrease from $304 million in 2020[35] - The payout ratio was 91% in 2021, compared to 82% in 2020[35]

Financial Data and Key Metrics Changes - TransAlta reported a record adjusted EBITDA of CAD 1.26 billion for 2021, a 36% increase from 2020 [5][21] - Free cash flow reached CAD 562 million or CAD 2.07 per share, marking a 59% increase on a per share basis compared to 2020 [5][21] - The company ended the year with CAD 2.2 billion in liquidity, including CAD 947 million in cash [22] Business Line Data and Key Metrics Changes - The Alberta hydro fleet delivered a threefold increase in adjusted EBITDA from CAD 105 million in 2020 to CAD 322 million in 2021 [20] - Adjusted EBITDA from the new gas segment increased by 35% year-over-year from CAD 367 million in 2020 to CAD 494 million in 2021 [20] - Energy marketing delivered CAD 137 million in adjusted EBITDA, a 21% increase from 2020 [20] Market Data and Key Metrics Changes - The average pool price for Q4 2021 settled at CAD 107 per megawatt hour, significantly higher than the average price of CAD 47 [17] - The hydro fleet captured peak pricing with average realized prices of CAD 122 per megawatt hour, representing a 19% premium over the average spot price [18] Company Strategy and Development Direction - The company aims to achieve a 75% reduction in CO2 emissions by 2026 from 2015 levels, having already reduced annual CO2 emissions by 3.9 million tons in 2021 [8][27] - TransAlta secured 600 megawatts of renewable growth in 2021, representing 30% of its five-year growth target [9][10] - The company is focusing on maximizing the value of its hydro and wind fleets while exploring battery storage opportunities [13] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in achieving the 2 gigawatts clean electricity growth plan by 2025, with a target to reach investment decisions on another 400 megawatts in 2022 [9][26] - The company noted strong demand for renewables in the US and plans to expand its development pipeline [12][26] - Management highlighted the importance of securing long-term contracts to support the Alberta merchant fleet [39] Other Important Information - TransAlta completed its transition from coal to gas in Canada, achieving this milestone nine years ahead of the government target [8] - The company is committed to equity, diversity, and inclusion, aiming for at least 40% female employees by 2030 [27][29] Q&A Session Summary Question: Discussion on US development pipeline changes - Management clarified that changes in the US development pipeline were driven by continuous evaluation of project potential rather than supply chain or inflationary pressures [32][33] Question: Confirmation of the 2 gigawatts target by 2025 - The target remains unchanged, with ongoing development efforts to meet this goal [34] Question: Factors affecting the clean energy growth plan - Management emphasized the importance of matching development projects with power purchase agreements (PPAs) and noted robust demand for renewable energy [36][38] Question: Relationship between TransAlta and TransAlta Renewables - TransAlta Renewables remains a key vehicle for funding growth, with ongoing evaluations of strategic positioning [42] Question: Impact of FMG settlements on EBITDA - Specific terms of the FMG settlement were confidential, but management expressed satisfaction with the resolution [44] Question: Long-term outlook for the Pacific Northwest market - Management is exploring renewable opportunities and alternative technologies for future projects in the region [46][48] Question: Cost pressures on projects - Management acknowledged inflationary pressures but emphasized that PPAs help maintain project economics [58][59] Question: Clarity on contracting for industrial customers - Management expects to finalize contracts with major industrial customers in the first half of the year [62] Question: Strategy for refinancing capital commitments - The company plans to refinance capital commitments for new facilities, leveraging its strong cash position [66]

A c c e l e r a t i n g C l e a n 2 0 2 1 I n t e g r a t e d R e p o r t About This Report Welcome to TransAlta's seventh consecutive Integrated Report, which combines our financial and sustainability goals and results. This is an industry-leading practice and Trans Alta is one of only a few companies to do this in North America. We believe sustainability performance should be evaluated, managed and communicated alongside our financial performance to demonstrate the impact on financial, environmental and s ...

TransAlta Corporation (NYSE:TAC) Q3 2021 Results Conference Call November 9, 2021 11:00 AM ET Company Participants Chiara Valentini - Managing Director-Strategic Finance and Investor Relations John Kousinioris - President, Chief Executive Officer and Corporate Director Todd Stack - Executive Vice President-Finance and Chief Financial Officer Kerry O'Reilly Wilks - Executive Vice President-Legal, Commercial and External Affairs Conference Call Participants Rob Hope - Scotiabank Ben Pham - BMO Maurice Choy - ...

TransAlta Q3 2021 Results NOVEMBER 9, 2021 TransAlta 1 Forward-Looking Statements In particular, this presentation contains forward-looking statements including, but not limited to, statements relating to: our Clean Electricity Growth Plan and ability to achieve the target of 2 GW of incremental renewables capacity with an investment of $3 billion by 2025; the Windrise project and that the project will reach commercial operation later this month; the Northern Goldfields Solar and Storage project, and that c ...

Financial Performance - Comparable EBITDA increased by 39% from $217 million to $302 million[10, 36, 37] - Free Cash Flow (FCF) increased by 52% from $91 million to $138 million[12, 36] - FCF per share increased by 55% from $0.33 to $0.51[12, 36] - TransAlta Renewables Q2 2021 Comparable EBITDA was $97 million, compared to $115 million in Q2 2020[41] - TransAlta Renewables Q2 2021 AFFO was $64 million, compared to $90 million in Q2 2020[41] - TransAlta Renewables Q2 2021 CAFD was $40 million, compared to $67 million in Q2 2020[41] Growth Initiatives - Launched the 48 MW Northern Goldfields Solar & Storage Project in Australia, with an expected EBITDA of $8 - $9 million[11, 22, 23] - Launched the Garden Plain 130 MW Wind Project in Alberta, with an expected EBITDA of ~$14 – $18 million[13, 25] - Added 500 MW of renewables to the growth pipeline[19] - The company has access to $2 billion in liquidity, including approximately $650 million in cash[19] Portfolio and Strategy - The company has an advanced stage development sites of 500 MW and early/mid-stage prospects of 2.3GW – 2.9GW[17, 29] - Updated 2021 Comparable EBITDA guidance to $1,100 - $1,200 million, up ~13% from the original guidance[14, 43] - Updated 2021 FCF guidance to $440 - $515 million, up ~22% on a per share basis[14, 43]

TransAlta Corporation (NYSE:TAC) Q2 2021 Earnings Conference Call August 10, 2021 11:00 AM ET Company Participants Chiara Valentini – Managing Director-Strategic Finance and Investor Relations John Kousinioris – President, Chief Executive Officer and Corporate Director Todd Stack – Chief Financial Officer, Executive Vice President-Finance and President-TransAlta Renewables Kerry Wilks – Executive Vice President-Legal, Commercial and External Affairs Conference Call Participants Mark Jarvi – CIBC Capital Mar ...

Trans/Alta" 1 Q1 2021 Results May 13, 2021 TransAlta Corporation 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 based on available information and on management's experience and perception of historical trends, current conditions, and expected future developmen ...

Financial Data and Key Metrics Changes - The company reported a 41% increase in comparable EBITDA, reaching CAD 310 million, and a 23% increase in free cash flow per share, amounting to CAD 0.48, compared to Q1 2020 [10][26][27] - Cash flow from the hydro fleet increased significantly from CAD 23 million to CAD 72 million due to the elimination of PPA obligation payments [28] - Free cash flow for the quarter was CAD 129 million, approximately 20% higher than the previous year [27] Business Line Data and Key Metrics Changes - The Alberta Hydro segment benefited from strong pricing, achieving an average realized price of CAD 122 per megawatt hour, a 28% premium over the average spot price [41] - The Energy Marketing segment delivered CAD 45 million in cash flow, capitalizing on favorable trading conditions [31] - The Wind and Solar segment's cash flow was down modestly due to line loss provisions, but higher realized pricing and the addition of the Skookumchuck facility partially offset this [29] Market Data and Key Metrics Changes - The average pool price for Q1 settled at CAD 95 per megawatt hour, influenced by extreme cold weather in February [40] - Power prices in Alberta are expected to settle at the higher end of the guidance range, around CAD 65 to CAD 70 per megawatt hour for the remainder of the year [42] Company Strategy and Development Direction - The company aims to be the supplier of choice for customers focused on sustainable growth and decarbonization, with a focus on advancing its three core operating pillars: TransAlta Renewables, Alberta Hydro, and Thermal Generation [19][20] - The company is actively pursuing growth opportunities, including the Garden Plain wind project and additional wind projects in its U.S. portfolio [23][24] - The company is committed to maintaining liquidity in excess of CAD 2 billion to support its growth initiatives and coal-to-gas conversion projects [17] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the Alberta power market, expecting pricing to remain stable and supportive of the company's financial performance [65] - The company anticipates strong cash flow performance for the remainder of the year, with EBITDA and free cash flow expected to be at the upper end of guidance [44] - Management highlighted the importance of flexibility in operations, particularly in light of increasing renewable energy in the market [68] Other Important Information - The company announced it would not proceed with the Kaybob cogeneration facility and has initiated arbitration against Energy Transfer Canada for wrongful termination of the agreement [18] - The company is exploring carbon capture and storage solutions for future adoption [16][100] Q&A Session Summary Question: Discussion on the Garden Plain wind project and contracting plans - Management is actively marketing the remaining 30 megawatts of the Garden Plain project and is optimistic about contracting opportunities [58] - The estimated CAD 17 million EBITDA is based on the current contract and various scenarios, including potential contracting of the remaining capacity [60] Question: Alberta power market pricing outlook - Management expects current pricing levels to continue, with a forecast of CAD 65 to CAD 70 per megawatt hour for the balance of the year [65] Question: Updates on Sundance Unit 5 and cost changes - The increase in costs is due to more precise estimates and the need for greater operational flexibility, which is seen as beneficial for the project [66][68] Question: Hydro segment performance and ancillary revenue - The hydro segment's performance was in line with expectations, and ancillary revenue was competitive despite some market challenges [73][75] Question: Future growth opportunities in Australia - The company is assessing renewable opportunities in Australia, focusing on solar and wind projects [88] Question: CCS and hydrogen integration into Sundance 5 - Management is considering CCS strategies for Sundance 5 but acknowledges the high costs associated with such technologies [99][100]