investor fact sheet.€¦ · canadian coal* u.s. coal gas wind and solar hydro 27% 7% 40% 22% 5%...
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COMPANY OVERVIEWTransAlta Corporation (TSX:TA, NYSE:TAC), headquartered in Calgary, Alberta, is one of Canada’s largest publicly traded wholesale power generators and marketers. We own, operate, and manage a highly contracted and geographically diversified portfolio of assets representing nearly 9,000 MW of gross generating capacity and use a broad range of generation fuels comprised of coal, natural gas, water, sun, and wind. We’re also the majority owner of TransAlta Renewables, our sponsored vehicle that owns contracted gas and renewable assets. Our goals are to deliver solid returns by developing and operating assets in our three regions and among four fuel types. By 2030, our fleet will be fully transitioned from coal to natural gas and renewables. We maximize value by contracting assets, achieving strong availability, and aiming for first-quartile costs. From our beginnings as a small, local power company to the diverse business that we are today, TransAlta has been providing power for more than 100 years and we’ll keep on growing for the future.
WHY INVEST• 100+ year operating history
• Diversified, and highly contracted portfolio
• Investment grade credit rating
• Strategic partnerships
• Near and long-term EBITDA growth
• Significant opportunities for growth in gas and renewables
• Well positioned for growth in markets with strong fundamentals, including Western Canada and Australia
• Access to low-cost capital for funding growth through TransAlta Renewables
TRANSALTA TODAY
• 2015 comparable free cash flow of $315 million
• More than 70 facilities in Canada, U.S. and Australia
• Net fleet capacity of over 8,700 MW
• Net renewable capacity of ~2,300 MW
• Canada’s largest wind power generator with more than 1,300 MW of net generating capacity
• Enterprise value of ~ $7.7 billion
• Market capitalization of ~ $1.7 billion
• 3 month average daily shares traded: ~0.653 million (at Sept. 30, 2016)
• Total shares outstanding: 287.9 million (at Sept. 30, 2016)
GENERATION FACILITIES
www.transalta.com
INVESTOR FACT SHEET.
Canadian Coal*
U.S. Coal
Gas
Wind and Solar
Hydro
27%
7%
40%
22%
5%5%
41%
15%
16%
11%
17%
Canadian Coal
U.S. Coal
Gas
Wind and Solar
Hydro
LATEST QUARTERLY DIVIDEND
(Common Shares): $0.04 Declared Oct. 17, 2016
* Includes 100% of TransAlta Renewables’ assets
2015 NET GENERATING CAPACITY BY FUEL TYPE*
2015 FREE EBITDA BY BUSINESS SEGMENT* * Free EBITDA refers to comparable EBITDA less sustaining capital
and excludes Energy Marketing and Corporate Segments
* Excludes the $59 million adjustment to provisions in the fourth quarter 2015
SHAREHOLDER INFORMATION
TRADING INFORMATION
Ticker Exchange Security Type
TA TSX TransAlta Corporation Common Shares
TAC NYSE TransAlta Corporation Common Shares
TA.Pr.D TSX TransAlta Corporation Cumulative Redeemable Rate Reset First Preferred Shares, Series A
TA.Pr.E TSX TransAlta Corporation Cumulative Redeemable Rate Reset First Preferred Shares, Series B
TA.Pr.F TSX TransAlta Corporation Cumulative Redeemable Rate Reset First Preferred Shares, Series C
TA.Pr.H TSX TransAlta Corporation Cumulative Redeemable Rate Reset First Preferred Shares, Series E
TA.Pr.J TSX TransAlta Corporation Cumulative Redeemable Rate Reset First Preferred Shares, Series G
STRATEGIC OBJECTIVES
Objectives Targets
Operational Excellence• 87% to 89% 2016 Canadian Coal availability
• Ensure sustainable and resilient cost savings
Maximize Financial Flexibility• Reposition capital structure by pursuing project-level debt
• Achieve and maintain investment grade credit metrics
Strategic Growth • Secure a mutually beneficial coal transition arrangement with
the Alberta government
• Grow our portfolio of contracted gas and renewable assets
EXECUTIVE TEAMDawn Farrell | President and Chief Executive Officer
Donald Tremblay | Chief Financial Officer
Brett M. Gellner | Chief Investment Officer
Dawn de Lima | Chief Administration Officer
John H. Kousinioris | Chief Legal and Compliance Officer
Cynthia Johnston | Executive Vice-President, Gas Renewables & Operations Services
Jennifer Pierce | Executive Vice-President, Trading and Marketing
Wayne Collins | Executive Vice-President, Coal and
Mining Operations
RECENT GROWTHAsset Year Fuel Type Capacity (MW)
Ardenville 2010 Wind 69
Kent Hills 2 2010 Wind 54
Summerview 2 2010 Wind 66
Bone Creek 2011 Hydro 19
Keephills 3 2011 Coal 225
K1 & K2 Uprates 2012 Coal 26
Sun 3 Uprate 2012 Coal 15
Solomon 2012 Gas 125
New Richmond 2012 Wind 68
Wyoming 2013 Wind 144
Australian Pipeline 2014 N/A N/A
South Hedland 2014(1) Gas 150
Kent Breeze 2015 Wind 20
Wintering Hills 2015 Wind 45
Mass Solar 2015 Solar 21
Lakeswind 2015 Wind 50
PERFORMANCE METRICS
CONTACT INFORMATIONTransAlta Corporation | PO Box 1900, Station M 110 - 12th Avenue SW | Calgary, AB T2P 2M1
Corporate Office 403.267.7110
Investor Relations 403.267.2520 or 1.800.387.3598
www.transalta.com
Comparable EBITDA ($M)1 Excludes the $59 million adjustment to provisions
in Q4 2015
2013 2014 20151 Q3 2015 Q3 2016
$1,023 $1,036 $1,004
$219 $244
Comparable Funds from Operations ($M)
2013 2014 2015 Q3 2015 Q3 2016
$729 $762 $740
$126 $163
800
Adjusted Availability (%)3
3 Adjusted for economic dispatching at U.S. Coal
2013 2014 2015 Q3 2015 Q3 2016
87.8% 90.5% 89.0%99.7% 91.5%
Sustaining Capital ($M)2
2 Including insurance recoveries
$348
2013
$357
2014
$280
2015
$79
Q3 2015
$62
Q3 2016
Comparable Free Cash Flow ($M)
2013 2014 2015 Q3 2015 Q3 2016
$288 $280$315
$8$57
(1) Will be commissioned in mid-2017
ANALYST COVERAGEBMO Capital Markets | Ben Pham
CIBC | Robert Catellier
Credit Suisse | Andrew Kuske
National Bank Financial | Patrick Kenny
RBC Capital Markets | Robert Kwan
TD NewCrest | Linda Ezergailis
Industrial Alliance | Jeremy Rosenfield
Scotia Capital | Robert Hope
GMP FirstEnergy | Ian Gillies