Company: TSLTF
Filing Date: 2025-12-12
Form Type: SUPPL
Source: 0001193125-25-317786
Chunk: 390

Company: TRANSALTA CORP
Filing Date: 2025-12-12
Form: SUPPL
Chunk 390
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173 million (Dec. 31, 2024 — $202 million) and deferred income 
 taxes of $423 million (Dec. 31, 2024 — $470 million).                                                                                                                                                                              |

| TransAlta Corporation |     | M43 |

Management’s Discussion and Analysis

Significant changes in TransAlta’s condensed consolidated statements of financial position were as follows: Working Capital The deficit of current assets over current liabilities, including the current portion of long-term debt and lease liabilities was $392 million as at Sept. 30, 2025 (Dec. 31, 2024 — $796 million). The deficit decreased primarily as a result of a decrease in the current portion of credit facilities, long-term debt and lease liabilities. On March 25, 2025, the Company repaid its $400 million variable rate term loan facility in advance of the scheduled maturity date of Sept. 7, 2025, with the proceeds received from the $450 million senior notes offering. Current assets decreased by $315 million to $1,458 million as at Sept. 30, 2025, from $1,773 million as at Dec. 31, 2024, primarily due to:

| • |     | Lower risk management assets mainly due to decrease in market price volatility, lower trading 
 activity and contract settlements;                                                            |

| • |     | Lower cash and cash equivalents mainly due to lower cash flow from operating activities and higher 
 cash used in investing activities; and                                                             |

| • |     | A decrease in assets held for sale related to the Required Divestitures driven by the updated                
 expectations of the fair value less costs to sell and the derecognition of one of the Required Divestitures. |

Current liabilities decreased by $719 million to $1,850 million as at Sept. 30, 2025, from $2,569 million as at Dec. 31, 2024, mainly due to:

| • |     | Lower current portion of credit facilities, long-term debt and lease liabilities mainly due to 
 advance repayment of the variable rate term loan facility in the first quarter of 2025;        |

| • |     | Lower risk management liabilities due to lower market prices and contract settlements; |

| • |     | Lower contingent consideration payable related to changes in fair value and the derecognition of 
 one of the Required Divestitures; and                                                            |

| • |     | Lower dividends payable due to the timing of payments; partially offset