Company: TSLTF
Filing Date: 2025-12-12
Form Type: SUPPL
Source: 0001193125-25-317786
Chunk: 395

Company: TRANSALTA CORP
Filing Date: 2025-12-12
Form: SUPPL
Chunk 395
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 reasonably possible alternative assumptions as inputs to valuation techniques and any material differences are disclosed in the notes to the unaudited interim condensed consolidated financial statements. At Sept. 30, 2025, Level III instruments had a net liabilities carrying value of $265 million (Dec. 31, 2024 – net liabilities $234 million). The Level III liabilities increased during the nine months ended Sept. 30, 2025 from Dec. 31, 2024 due to unfavourable changes in market pricing across multiple markets driven by higher volatility, partially offset by an increase in long-term financial assets as a result of the Company making available a term loan and revolving facility to a developer of renewable energy projects and a decrease in the fair value of contingent consideration payable driven by updated expectations on the fair value less costs to sell on the Required Divestitures and derecognition of contingent consideration upon completion of one of the Required Divestitures. Our risk management profile and practices have not changed materially from Dec. 31, 2024.

| M54 |     | TransAlta Corporation |

Management’s Discussion and Analysis Non-IFRSand Supplementary Financial Measures We use a number of financial measures to evaluate our performance and the performance of our business segments, including measures and ratios that are presented on a non-IFRSbasis, as described below. Unless otherwise indicated, all amounts are in Canadian dollars and have been derived from our consolidated financial statements prepared in accordance with IFRS. We believe that these non-IFRSamounts, measures and ratios, read together with our IFRS amounts, provide readers with a better understanding of how management assesses results. Non-IFRSamounts, measures and ratios do not have standardized meanings under IFRS. They are unlikely to be comparable to similar measures presented by other companies and should not be viewed in isolation from, as an alternative to, or more meaningful than, our IFRS results. We calculate adjusted measures by adjusting certain IFRS measures for certain items we believe are not reflective of our ongoing operations in the period. Except as otherwise described, these adjusted measures are calculated on a consistent basis from period to period and are adjusted for specific items in each period, unless stated otherwise. Non-IFRSFinancial Measures Adjusted EBITDA, adjusted revenues, adjusted fuel and purchased power, adjusted gross margin, adjusted OM&A, adjusted net other operating income, adjusted (loss) earnings before income taxes, adjusted net (loss) earnings after income taxes attributable to common shareholders, F