Company: TSLTF
Filing Date: 2025-12-12
Form Type: SUPPL
Source: 0001193125-25-317786
Chunk: 229

Company: TRANSALTA CORP
Filing Date: 2025-12-12
Form: SUPPL
Chunk 229
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 transactions or restructuring and that are 
 not reflective of ongoing operations.                                                              |

| • |     | Other adjustments include payments/receipts for production tax credits, which are reductions to tax 
 equity                                                                                              |

| TransAlta Corporation |     | 2024 Integrated Report |     | M65 |

Management’s Discussion and Analysis

| debt and include distributions from equity-accounted joint ventures. |

Free Cash Flow (FCF) FCF is an important metric as it represents the amount of cash that is available to invest in growth initiatives, make scheduled principal repayments on debt, repay maturing debt, pay common share dividends or repurchase common shares. Changes in working capital are excluded so FFO and FCF are not distorted by changes that we consider temporary in nature, reflecting, among other things, the impact of seasonal factors and timing of receipts and payments. FCF is a non-IFRSmeasure. For a description of the adjustments made to Cash Flow from Operations (the most directly comparable IFRS measure) to calculate FCF, see the tables on pages M70 and M74. Adjusted Gross Margin Adjusted gross margin is calculated as adjusted revenues less adjusted fuel and purchased power and carbon compliance costs, where adjustments to revenue or fuel and purchased power were applied as stated above. The Skookumchuck wind facility has been included on a proportionate basis in the Wind and Solar segment. The most directly comparable measure is gross margin in the consolidated statement of earnings.

Non-IFRSRatios FFO per share, FCF per share and adjusted net debt to adjusted EBITDA are non-IFRSratios that are presented in the MD&A. Refer to the Reconciliation of Cash Flow from Operations to FFO and FCF and Key Non-IFRSFinancial Ratios sections of this MD&A for additional information. FFO per Share and FCF per Share FFO per share and FCF per share are calculated using the weighted average number of common shares outstanding during the period. FFO per share and FCF per share are non-IFRSratios. Supplementary Financial Measures Sustaining capital expenditures and growth and development expenditures are supplementary financial measures used to present our spend related to facilitate safe and reliable operation of our existing facilities and the construction of projects, respectively. Refer to the Capital Expenditures section of this MD&A for additional information. The Alberta electricity portfolio metrics disclosed are supplementary financial measures used to present the gross margin by segment for the Alberta market. Refer to the Alberta Portfolio section of this MD