TD Securities 2011 Calgary Unconventional Energy Conference July 7, Dawn Farrell Chief Operating Officer

Transcription

1 TD Securities 2011 Calgary Unconventional Energy Conference July 7, 2011 Dawn Farrell Chief Operating Officer 1

2 Forward looking statements This presentation may contain forward looking statements, including statements regarding the business and anticipated financial performance of TransAlta Corporation. All forward looking statements are based on our beliefs and assumptions based on information available at the time the assumption was made. These statements are not guarantees of our future performance and are subject to a number of risks and uncertainties that may cause actual results to differ materially from those contemplated by the forward looking statements. Some of the factors that could cause such differences include cost of fuels to produce electricity, legislative or regulatory developments, competition, global capital markets activity, changes in prevailing interest rates, currency exchange rates, inflation levels, unanticipated accounting or audit issues with respect to our financial statements or our internal control over financial reporting, plant availability, and general economic conditions in geographic areas where TransAlta Corporation operates. Given these uncertainties, the reader should not place undue reliance on this forward looking information, which is given as of this date. The material assumptions in making these forward looking statements are disclosed in our 2010 Annual Report to shareholders and other disclosure documents filed with securities regulators. Unless otherwise specified, all dollar amounts are expressed in Canadian dollars. 2

3 TransAlta at a glance Canada s largest publicly traded wholesale power generator & marketer with over 100 years of operating experience Over 8,000 strategically positioned in Canada, Western U.S. and Australia More than 2,100 of renewable energy 3,100 of new assets added during last ten years Revenues of ~$3 billion generated from an asset base of over $9 billion Enterprise value of ~ $10 billion with a market cap of ~$5 billion Investment grade credit ratings Listed on Toronto and New York stock exchanges Coal: 4,317 Gas: 1,813 Hydro: 912 Wind: 1,064 Geothermal: 164 3

4 TransAlta s renewable fleet Canada s leading provider of renewable energy; invested more than $2.5 billion in renewable energy over the last decade CANADA UNITED STATES Hydro facilities 5 HAWAII 164 Wind-powered plants Geothermal 4

5 Growth in renewables We have significantly diversified and more than doubled our renewable portfolio over the last decade Renewable Portfolio Capacity 2,121 High quality resource with significant development potential 1,117 Canada s largest generator of wind power 800 Alberta s largest generator of hydro power Hydro Wind Geothermal 5

6 TransAlta s renewable fleet Renewables now account for 26% of our portfolio Highly contracted with some leverage to price 73% 12% 15% Coal ,870 Gas Renewables 22% 26% 52% Average remaining contract life: 13 years 2011e 8,270 6

7 Renewables driving increase in gross margins Diversified growth & optimization have driven a 50% increase in gross margins Total Portfolio Fuel Mix () Generation gross margin per h produced $31.53 $ e 6,870 8,270 Comparable Generation Gross Margins by Fuel Type 15% 73% 12% 26% 22% 52% Coal Gas Renewables

8 GWh GWh GWh Diversification reduces risk of any one fuel 2011 Expected production by fuel type Production Monthly Variability (Std Dev/Avg) Base and Intermediate Load Production (Coal, Gas, Geo) Wind Hydro Base/Intermediate Total Risk (Std Dev) Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Wind Production Hydro Production Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec 8

9 Significant future growth opportunity Significant near, medium and long-term renewable development opportunities Development opportunities Geothermal Wind Hydro 9

10 Why renewables? Generates attractive returns Diversifies risk Low ongoing capital requirements Provides a broader platform for growth Scale allows for sharing of operational expertise and standardized practices 10