Company: TSLTF
Filing Date: 2025-12-12
Form Type: SUPPL
Source: 0001193125-25-317786
Chunk: 414

Company: TRANSALTA CORP
Filing Date: 2025-12-12
Form: SUPPL
Chunk 414
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 or submitted under securities legislation is recorded, processed, summarized and reported within the time frame specified in applicable securities legislation. DC&P include, without limitation, controls and procedures designed to ensure that information required to be disclosed by the Company in its reports that it files or submits under applicable securities legislation is accumulated and communicated to management, including the Chief Executive Officer and Chief Financial Officer, as appropriate to allow timely decisions regarding required disclosure. Dispatch optimization Power is not produced during periods of low market price, but if required, is purchased in the market to fulfil contract obligations. Exchangeable Debentures On May 1, 2019, Brookfield Renewable Partners or its affiliates (collectively, Brookfield) invested $350 million in exchange for seven per cent unsecured subordinated debentures due May 1, 2039. Exchangeable Preferred Shares On Oct. 30, 2020, Brookfield invested $400 million in the Company in exchange for redeemable, retractable first preferred shares (Series I). The Series I Preferred Shares are accounted for as current debt and the exchangeable preferred share dividends are reported as interest expense. Exchangeable Securities The Exchangeable Debentures and the Exchangeable Preferred Shares which are exchangeable into an equity ownership interest in TransAlta’s Alberta hydro assets in the future at a value based on a multiple of the Alberta Hydro Assets’ future-adjusted EBITDA (Option to Exchange).

| M72 |     | TransAlta Corporation |

Management’s Discussion and Analysis Free Cash Flow (FCF) Represents the amount of cash that is available to invest in growth initiatives, make scheduled debt principal repayments on debt, repay maturing debt, pay common share dividends or repurchase common shares and provides the ability to evaluate cash flow trends in comparison with the results from prior periods. Refer to the Non-IFRSand Supplementary Financial Measures section for additional information. Funds from Operations (FFO) Represents a proxy for cash generated from operating activities before changes in working capital and provides the ability to evaluate cash flow trends in comparison with results from prior periods. Refer to the Non-IFRSand Supplementary Financial Measures section for additional information. Gigajoule (GJ) A metric unit of energy commonly used in the energy industry. One GJ equals 947,817 British Thermal Units (Btu). One GJ is also equal to 277.8 kilowatt hours (kWh). Gigawatt (GW) A measure of electric power equal to 1,000 megawatts. Gigawatt