Company: TSLTF
Filing Date: 2025-12-12
Form Type: SUPPL
Source: 0001193125-25-317786
Chunk: 187

Company: TRANSALTA CORP
Filing Date: 2025-12-12
Form: SUPPL
Chunk 187
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 |            |   32 |   |
| Other                                                                                                                                                                                                                              
 non-cash items(2)                                                                                                                                                                                                                  |         |            |   14 |   |
| Other(3)                                                                                                                                                                                                                           |         |            |  (22 | ) |
| FCF(4) for the year ended Dec. 31, 2024                                                                                                                                                                                            |         |            |  569 |   |

| (1) | Net interest expense includes interest expense less interest income and excludes non-cash items like financing amortization and accretion. |

| (2) | Other non-cash items consists of Alberta market pool                                                                                                                          
 incentives, carbon obligation and contract liabilities. Refer to the Reconciliation of Cash Flow from Operations to FFO and FCF section tables in this MD&A for more details. |

| (3) | Other consists of higher realized foreign exchange loss, higher decommissioning and restoration                                                                                                                                                      
 costs settled, higher dividends paid on preferred shares, lower principal payments on lease liabilities and lower productivity capital. Refer to the Reconciliation of Cash Flow from Operations to FFO and FCF section tables in this MD&A for more 
 details.                                                                                                                                                                                                                                             |

| (4) | FCF is not defined and has no standardized meaning under IFRS and may not be comparable to                                                                                                                    
 similar measures presented by other issuers. Refer to the Additional IFRS Measures and Non-IFRS Measures section of this MD&A. For a comparison of 2024 and 2023 cash flow from operations, the most directly 
 comparable IFRS measure, see page M56.                                                                                                                                                                        |

| M14 |     | TransAlta Corporation |     | 2024 Integrated Report |

Management’s Discussion and Analysis Free Cash Flow — 2023 versus 2022 For the year ended Dec. 31, 2023, the Company’s FCF decreased by $71 million, or 7 per cent, compared to 2022, and was in line with our revised expected full-year financial guidance. The major factors impacting FCF are summarized in the following table:

|                                                                                                                                                                                                     |         | Year ended |     |   |
|:----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|:--------|:-----------|----:|:--|
|                                                                                                                                                                                                     | Dec. 31 |            |     |   |
| FCF for the year ended Dec. 31,                                                                                                                                                                     
 2022                                                                                                                                                                                                |         |            | 961 |   |
| Lower Adjusted EBITDA