Company: TSLTF
Filing Date: 2025-12-12
Form Type: SUPPL
Source: 0001193125-25-317786
Chunk: 230

Company: TRANSALTA CORP
Filing Date: 2025-12-12
Form: SUPPL
Chunk 230
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 |   |     |      |   2.5 |   |     |      |    2.1 |   |

| (1) | Consists of current and non-current portions of long-term        
 debt, which includes lease liabilities and tax equity financing. |

| (2) | Cash and cash equivalents, net of bank overdraft. |

| (3) | Exchangeable preferred shares are considered equity with dividend payments for credit-rating                                                                                                                                                
 purposes. For accounting purposes, they are accounted for as debt with interest expense in the consolidated financial statements. For purposes of this ratio, we consider 50 per cent of issued preferred shares, including these, as debt. |

| (4) | Includes principal portion of TransAlta OCP restricted cash ($17 million for 2024, 2023 and                                                                       
 2022) and fair value of hedging instruments on debt (included in risk management assets and/or liabilities on the Consolidated Statements of Financial Position). |

| (5) | The tax equity financing for the Skookumchuck wind facility, an equity-accounted joint venture,                                                                                                                                                         
 is not represented in this amount. Adjusted net debt is not defined and has no standardized meaning under IFRS and may not be comparable to similar measures presented by other issuers. Presenting this item from period to period provides management 
 and investors with the ability to evaluate earnings trends more readily in comparison with prior periods’ results. Refer to the Additional IFRS Measures and Non-IFRS Measures section of this MD&A.                                                    |

| (6) | Last 12 months. |

| (7) | During 2024 our adjusted EBITDA composition was amended to exclude the impact of Brazeau                                                                                                                    
 penalties and related provisions. Therefore, the Company has applied this composition to all previously reported periods. Refer to the Additional IFRS Measures and Non-IFRS Measures section of this MD&A. |

The Company’s capital is managed using a net debt position. We use the adjusted net debt to adjusted EBITDA ratio as a measurement of financial leverage and to assess our ability to service debt. Our target for adjusted net debt to adjusted EBITDA is 3.0 to 4.0 times. Our adjusted net debt to adjusted EBITDA ratio for Dec. 31, 2024 was higher compared to Dec. 31, 2023, due to higher adjusted net debt resulting from the assumption of Heartland debt, lower cash balances due to cash paid