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NOVEMBER 3, 2026 Third Quarter 2026 Results Keephills , Alberta
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2 Forward - looking Statements and Non - IFRS Measures This presentation includes "forward - looking information," within the meaning of applicable Canadian securities laws, and "forwar d - looking statements," within the meaning of applicable United States securities laws, including the Private Securities Litigat i on Reform Act of 1995 (collectively referred to herein as "forward - looking statements"). Forward - looking statements are not facts, but only prediction s and generally can be identified by the use of statements that include phrases such as "may", "will", "can", "could", "would ", "shall", "believe", "expect", "estimate", "anticipate", "intend", "plan", "forecast", "foresee", "potential", "enable", "continue" or other comparable term ino logy. These statements are not guarantees of our future performance, events or results and are subject to risks, uncertaintie s a nd other important factors that could cause our actual performance, events or results to be materially different from those set out in or implied by the forw ard - looking statements. In particular, this presentation contains forward - looking statements about the following, among other things: our 2026 Priorities, including the financial outlooks contained therein and our estimates of the impact of power price changes on our Adjusted EBITDA target s; the timing of receipt of environmental approvals at Centralia; and the full site development potential of our data centre str ate gy. The forward - looking statements contained in this presentation are based on many assumptions including, but not limited to, the f ollowing: no significant changes to applicable laws and regulations, including carbon pricing, royalty rates and climate - relate d regulations; no unexpected delays in obtaining required regulatory and other third - party approvals; no material adverse impacts to investment and credit ma rkets; no significant changes to power price and hedging assumptions; no significant changes to gas commodity price assumptio ns and transport costs; no significant changes to interest or foreign exchange rates; no significant changes to the demand for, and growth of, electrici ty generation; no significant changes to the integrity and reliability of our facilities; no significant changes to the Company' s d ebt and credit ratings; no unforeseen changes to economic and market conditions; no significant event occurring outside the ordinary course of business; no signifi can t changes to the Company's ability to develop, access or implement, on a timely basis and on reasonable terms, the technology ne cessary to efficiently and effectively operate the Company's assets and achieve expected future results; no significant supply chain disruptions or shor tag es of raw materials or skilled labour; no significant changes to the Company's ability to access the capital markets on reaso nab le terms; and no material changes to international trade laws, regulations, agreements, treaties, taxes, tariffs, duties or policies of Canada, the Uni ted States or other countries. These assumptions are based on information currently available to TransAlta, including information obtained from third - party sou rces. Actual results may differ materially from those predicted. Factors that may adversely impact what is expressed or impli ed by forward - looking statements contained in this presentation include, but are not limited to: fluctuations in power prices; changes in supply an d d emand for electricity; our ability to contract our electricity generation for prices that will provide expected returns; our abi lity to replace contracts as they expire; risks associated with development projects and acquisitions; our ability to develop, access or implement, on a timely basis a nd on reasonable terms, the technology necessary to efficiently and effectively operate our assets and achieve expected future r esu lts; any difficulty raising needed capital in the future on reasonable terms; long - term commitments on gas transportation capacity that may not be fully uti lized over time; changes to legislative, regulatory and political environments, including changes to carbon pricing, renewabl e e nergy policies and emissions regulations in Canada, the United States and Australia; environmental requirements and changes in, or liabilities under, thes e r equirements; operational risks involving our facilities, including unplanned outages and equipment failure; disruptions in th e t ransmission and distribution of electricity; grid reliability; reductions in production; impairments and/or writedowns of assets; adverse impacts on our information technology systems and our internal control systems, including increased cybers ec urity threats; commodity risk management and energy - trading risks; reduced labour availability, ability to continue to staff our operations and facilities and other labour relations matters; d isr uptions to our supply chains; weather conditions and their impact on electricity generation and demand; climate change - related r isks, including the increased frequency and severity of extreme weather events; reductions to our generating units' relative efficiency or capacity factors ; g eneral economic risks, including deterioration of equity markets, increasing interest rates, changes to foreign exchange rate s o r rising inflation; general domestic and international economic and political developments, including potential trade tariffs; industry risk and competit ion , including from emerging technologies affecting the demand, generation, distribution or storage of electricity; counterparty cr edit risks; inadequacy or unavailability of insurance coverage; increases in the Company's income taxes and any risk of reassessments; legal, regulator y a nd contractual disputes and proceedings involving the Company; reputational and stakeholder - related risks; and reliance on key p ersonnel. The foregoing risk factors, among others, are described in further detail under the heading "Risk Management" in the Annual M D&A . Readers are urged to consider these factors carefully when evaluating the forward - looking statements and are cautioned not to place undue reliance on them. The forward - looking statements included in this presentation are made only as of the date hereof and we do not undertake t o publicly update these forward - looking statements to reflect new information, future events or otherwise, except as required by applicable laws. The purpose of the financial outlooks contained herein is to give the reader information about management's current expectations and plans and readers are cautioned that such information may not be appropriate for other purposes. Certain financial informatio n contained in this presentation, including Adjusted EBITDA and Free Cash Flow (“FCF”) and FCF per share do not have standardized meanings as pre scr ibed by International Financial Reporting Standards (“IFRS”) and therefore may not be comparable to similar measures presente d b y other entities. The most directly comparable measures presented in the financial statements are: ( i ) in respect of Adjusted EBITDA, earnings before income taxes; (ii) FCF and FCF/share, Cash Flow From Operating. These measur es should not be considered in isolation or as a substitute for measures prepared in accordance with IFRS. Please refer to the “Non - IFRS and Supplementary Financial Measures” section of our Annual MD&A , for further discussion of these items, including, where applicable, reconciliations to measures calculated in accordance wi th IFRS. This presentation contains financial outlooks about the Company’s prospective results of operations. Readers are cautioned t hat the assumptions used in the preparation of such information, although considered reasonable at the time of preparation, may p ro ve to be imprecise and, as such, undue reliance should not be placed on such financial outlooks. The Company's actual results, performance or achievemen t c ould differ materially from those expressed in, or implied by, such financial outlook information. The Company has included the financial outlooks contained herein to give the reader information about management's current expectations and plans and readers are cautioned t hat such information may not be appropriate for other purposes. Such financial outlooks have been approved by management of the C ompany and are provided as of the date of this presentation. The Company is not making any offer or invitation of any kind by communication of this document to the recipient and under no ci rcumstances is it to be construed as a prospectus or an advertisement. All amounts referenced in this presentation are in Canadian currency unless otherwise specified .
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3 Joel Hunter Replace with JH image when available; Anna has booked headshots 3 President and Chief Executive Officer
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4 Third Quarter Results Strategic Priorities Delivered Strong Performance and Execution Held Boreal Technology Hub data centre open house at Keephills Sold interest in Oklahoma wind assets for US$305 million Fleetwide availability of 92.6% FCF 1 of $ 93 million or $ 0.29 /share Adjusted EBITDA 1 of $264 million 1 Adjusted EBITDA, FCF and FCF per share are non - IFRS measures, see the forward - looking statements and non - IFRS measures informat ion on slide two of this presentation for more information. Closed US$1 billion acquisition of contracted Colorado gas assets Environmental permits for Centralia conversion expected to be received prior to year end Reaffirmed 2026 Outlook Announced mothball of Battle River and extended mothball of Sundance 6 preserving generation for future opportunities
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5 Progressing Data Centre Strategy Over 2,000 acres of zoned land available to support data centre expansion 230 MW secured through Phase I of AESO Large Load Integration Process Existing high - voltage transmission system, power capacity, natural gas infrastructure and water management systems Two repowering projects are in development in region Proceeding through public engagement and permitting process Open house held with Brookfield, CPPI and BGRE on October 7 Received AUC approval for Keephills 1 repowering Full site development potential of up to 1.6 GW of capacity through underutilized generation and advanced stage development projects Scale Infrastructure Progressing solutions to deploy underutilized generation to support both reliability needs and data centre load PHASE 1 GRADING PERMIT 25 24 13
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6 Mike Politeski Replace with JH image when available; Anna has booked headshots 6 Executive Vice President, Finance and Chief Financial Officer
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7 36 51 Alberta Pool Price $/MWh 32 44 Q3 2026 Q3 2025 Adjusted EBITDA 1 9 months ended 2026 9 months ended 2025 76 73 Hydro 198 246 52 45 Wind and Solar 237 236 139 110 Gas 374 342 30 17 Energy Marketing 57 64 (28) (35) Corporate (101) (115) (5) 28 Energy Transition (6) 84 264 238 Total 759 857 TransAlta Segmented Results Three and Nine Months Ended September 30, 2026 ($ millions) Emissions credits and optimization of Alberta portfolio provided upside to low spot prices FCF 1 of $93 million or $0.29 per share 1 Adjusted EBITDA, FCF and FCF per share are non - IFRS measures, see the forward - looking statements and non - IFRS measures informat ion on slide two of this presentation for more information. Reaffirmed 2026 Adjusted EBITDA 1 and FCF 1 guidance
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8 0 20 40 60 80 Gas Hydro Ancillary services Wind Average hedged power price Average spot price Alberta Merchant Electricity Portfolio 78% Hedged power price premium to spot price 11% A ncillary services premium to spot price Third Quarter 2026 Prices Price ($/MWh) 19 % Hydro merchant premium to spot price 1 53% Gas merchant premium to spot price 1 Hedged power prices remain significantly above spot prices 1 Excludes gains and losses from hedging positions. Optimization drives further upside to results Alberta portfolio continues to generate strong cashflows
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9 0 1,000 2,000 3,000 4,000 5,000 6,000 7,000 8,000 9,000 10,000 0 20 40 60 80 Q4 2026 Full Year 2026 Full Year 2027 Volume Forward price Average hedged power price Alberta Hedging Position Q4 2026 Full Year 2026 Full year 2027 Price ($/MWh) 67 65 65 Volume 2 (GWh) 2,061 9,364 6,732 Price ($/MWh) Volume (GWh) 1 Hedges continue to provide stability to merchant portfolio 1 As of September 30, 2026. Sourced from Intercontinental Exchange. 2 C&I and financial hedges; excludes capacity contract. 3 Adjusted EBITDA is a non - IFRS measure, see the forward - looking statements and non - IFRS measures information on slide two of thi s presentation for more information. Substantially hedged for the fourth quarter and into 2027 $1 per MWh change in spot price is expected to have ~$1 million impact on Adjusted EBITDA 3 for balance of year
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10 Strategic Strong safety, operational and financial performance from diversified portfolio Advance Alberta data centre projects Pursue strategic M&A and long - term growth opportunities Financial and Operational Adjust ed EBITDA 1 of $950 - $1,050 million FCF 1 of $ 350 - $ 450 million Improve leading and lagging safety performance F leet availability of ~ 93% Enhance financial strength and flexibility 2026 Priorities Advancing strategic initiatives Well positioned for future growth 1 Adjusted EBITDA and Free Cash Flow (FCF) are non - IFRS measures, see the forward - looking statements and non - IFRS measures informa tion on slide two of this presentation for more information. Progress Centralia Unit 2 conversion O ptimize the Alberta merchant fleet Annualized dividend of $0.28 per share
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11 11 Our Value Proposition Positioned for growth Diversified portfolio Centralia, Washington Financial strength and flexibility High potential legacy energy sites Safe and reliable operator 11
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12 Visit us at: www.transalta.com investor_relations@transalta.com Questions and Answers 12