Company: TSLTF
Filing Date: 2025-12-12
Form Type: SUPPL
Source: 0001193125-25-317786
Chunk: 213

Company: TRANSALTA CORP
Filing Date: 2025-12-12
Form: SUPPL
Chunk 213
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 • |     | Increase in credit facilities, long-term debt and lease liabilities due to the addition of             
 Heartland credit facilities and an increase in the cash drawings under the syndicated credit facility; |

| TransAlta Corporation |     | 2024 Integrated Report |     | M49 |

Management’s Discussion and Analysis

| • |     | Increase in decommissioning and other provisions due to additions of generating facilities from                                                           
 Heartland acquisition, revisions in discounts rates and estimated decommissioning costs and commissioning of Horizon Hill and White Rock wind facilities; |

| • |     | Higher deferred income tax liabilities due to an increase in temporary taxable differences arising 
 from the Heartland acquisition; and                                                                |

| • |     | Higher risk management liabilities due to forward price changes and volatility in market pricing 
 across multiple markets.                                                                         |

Total Equity As at Dec. 31, 2024, the increase in total equity of $179 million was due to:

| • |     | Net earnings of $239 million; and |

| • |     | Net gains on derivatives from cash flow hedges of $194 million; partially offset by |

| • |     | Share repurchases under the NCIB of $143 million; |

| • |     | Dividends declared on common and preferred shares of $123 million; and |

| • |     | Distributions to non-controlling interests of 
 $40 million.                                  |

Financial Capital The Company is focused on maintaining a strong balance sheet and financial position to ensure access to sufficient financial capital. Credit ratings provide information relating to the Company’s financing costs, liquidity and operations, and affect the Company’s ability to obtain short and long-term financing and/or the cost of such financing. Maintaining a strong balance sheet also allows the Company to enter into contracts with a variety of counterparties on terms and prices that are favourable to the Company’s financial results and provide TransAlta with better access to capital markets through commodity and credit cycles. In 2024, Moody’s reaffirmed the Company’s long-term rating of Ba1 with a stable outlook. Morningstar DBRS reaffirmed the Company’s issuer rating and unsecured debt/medium-term notes rating of BBB (low) and the Company’s preferred shares rating of Pfd-3(low), all with a stable outlook. In addition, S&P Global Ratings reaffirmed the Company’s senior unsecured debt rating and issuer credit rating of BB+ with a stable outlook. Risks associated with our credit ratings are discussed in the Governance and Risk