Embed Size (px)
Citation preview
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 over 9,400 MW of installed 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 2025, 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
• 2017 free cash flow of $328 million
• More than 70 facilities in Canada, U.S. and Australia
• Owned capacity of 8,000 MW
• Owned renewable capacity of ~2,280 MW
• Canada’s largest wind power generator with more than 1,300 MW of owned capacity
• Enterprise value of ~ $7.1 billion
• Market capitalization of ~ $2.0 billion
• 3 month average daily shares traded: ~0.70 million (at Sept. 30, 2018)
• Total shares outstanding: 286.4 million (at Sept. 30, 2018)
GENERATION FACILITIES
www.transalta.com
INVESTOR FACT SHEET.
Canadian and U.S. Coal*
Canadian Gas
Australian Gas
Wind and Solar
Hydro
25%
27%16%
25%
5%7%
56%
16%
11%
16%
Canadian and U.S. Coal
Gas
Wind and Solar
Hydro
LATEST QUARTERLY DIVIDEND
(Common Shares): $0.04 Declared Oct 10, 2018
* Includes 100% of TransAlta Renewables’ assets
2017 OWNED GENERATING CAPACITY BY FUEL TYPE*
2017 CASH FLOW FROM GENERATION BY BUSINESS SEGMENT** cash flow from generation refers to comparable EBITDA
less sustaining capital and excludes Energy Marketing and Corporate Segments
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 • 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 • Grow our portfolio of contracted gas and renewable assets
• Conversion of coal facilities to gas by 2025
• Development of the Brazeau pump storage project
EXECUTIVE TEAMDawn Farrell | President and Chief Executive Officer
Brett M. Gellner | Chief Strategy and Investment Officer
Dawn de Lima | Chief Officer — Business and Operational Services
John H. Kousinioris | Chief Growth Officer
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 Gas 150
Kent Breeze 2015 Wind 20
Wintering Hills 2015 Wind 45
Mass Solar 2015 Solar 21
Lakeswind 2015 Wind 50
Kent Hills 3 2017 Wind 17
Big Level 2018 Wind 90
Antrim 2018 Wind 29
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
Adjusted Availability (%)2
2 Adjusted for economic dispatching at U.S. Coal
89.5% 88.9% 86.9%
Q3 2017 Q3 2018
86.5% 93.7%
2015 2016 2017
Sustaining and Productivity Capital ($M)1
1 Including insurance recoveries
$46
Q3 2017
$55
Q3 2018
$301
2015
$270
2016
$235
2017
Free Cash Flow ($M)
Q3 2017 Q3 2018
$101 $94
$239 $257$328
2015 2016 2017
ANALYST COVERAGEBMO Capital Markets | Ben Pham
Canaccord Genuity Corp. | David Galison
CIBC Capital Markets | Mark Jarvi
Credit Suisse | Andrew Kuske
Industrial Alliance | Jeremy Rosenfield
National Bank Financial | Patrick Kenny
RBC Capital Markets | Robert Kwan
Scotia Capital | Robert Hope
TD Securities Inc. | John Mould
Comparable EBITDA ($M)
20151 20162 2017 Q3 2017 Q3 2018
$926$1,064 $1,062
$245 $249
Funds From Operations ($M)
Q3 2017 Q3 2018
$699 $734 $804
$196 $204
2015 2016 2017
