Company: TSLTF
Filing Date: 2025-12-12
Form Type: SUPPL
Source: 0001193125-25-317786
Chunk: 136

Company: TRANSALTA CORP
Filing Date: 2025-12-12
Form: SUPPL
Chunk 136
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. dollar and the Australian dollar, as a result of investments and operations in foreign jurisdictions, the net earnings from those operations and the acquisition of equipment and services from foreign suppliers. The Company may enter into the following hedging strategies to mitigate currency rate risk, including:

| • |     | Foreign exchange forward contracts to mitigate adverse changes in foreign exchange rates on 
 project-related                                                                             |

| expenditures and foreign currencies; distributions received in foreign currencies; |

| • |     | Foreign exchange forward contracts and cross-currency swaps to manage foreign exchange exposure on 
 foreign-denominated debt not designated as a net investment hedge; and                             |

| • |     | Designating foreign currency debt as a hedge of the net investment in foreign operations to  
 mitigate the risk due to fluctuating exchange rates related to certain foreign subsidiaries. |

The Company’s target is to hedge a minimum of 60 per cent of our forecasted foreign operating cash flows over a four-year period. The U.S. exposure is managed with a combination of interest expense on our U.S. dollar denominated debt and forward foreign exchange contracts and the Australian exposure is managed with a combination of interest expense on Australian-dollar denominated debt and forward foreign exchange contracts. i. Net Investment Hedges When designating foreign currency debt as a hedge of the Company’s net investment in foreign subsidiaries, the Company has determined that the hedge is effective if the foreign currency of the net investment is the same as the currency of the hedge and therefore an economic relationship is present. The Company’s hedges of its net investment in foreign operations were comprised of U.S.-dollar-denominated long-term debt with a face value of US$300 million (2023 — US$370 million). ii. Non-Hedges The Company also uses foreign currency contracts to manage its expected foreign operating cash flows and foreign exchange forward contracts to manage foreign exchange exposure on foreign-denominated debt not designated as a net investment hedge. Hedge accounting is not applied to these foreign currency contracts.

| TransAlta Corporation |     | 2024 Integrated Report |     | F60 |

Notes to the Consolidated Financial Statements

| As at Dec. 31                                                 |     |                  |     |              2024 |     |           |     |             |     | 2023      |     |                   |     |           |
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