1

powering on

Tran

sAlta

An

nu

al Gen

eral Meetin

g

TransAlta AGMApril 30, 2009

2

William D. Anderson

Board of Directors

3

Board of Directors

Stephen L. Baum

4

Board of Directors

Stanley J. Bright

5

Board of Directors

Timothy W. Faithfull

6

Board of Directors

Gordon D. Giffin

7

Board of Directors

C. Kent Jespersen

8

Board of Directors

Michael M. Kanovsky

9

Board of Directors

Gordon S. Lackenbauer

10

Board of Directors

Dr. Martha C. Piper

11

Board of Directors

Stephen G. Snyder

12

Board of Directors

Donna Soble Kaufman

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Remarks from Chair of the BoardDonna Soble Kaufman

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Delivering value to our shareholders

Three key focus areas:

Strategic planSustainable business practicesCorporate governance

Committed to balanced capital allocation

An integrated approach to enterprise risk management

Building a strong, sustainable company

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Recognized for outstanding efforts

Best Investor Relations Program

North American DJSI Index - 3rd consecutive year

1st in corporate governance for utilities - 7th consecutive year

Spencer Stuart 2009 National Awards in Governance

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Board of Directors

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Chief Financial Officer’s ReportBrian Burden

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Forward Looking Statements

This presentation may contain forward-looking statements, including statements regarding the business and anticipated financial performance of TransAlta Corporation. All forward-looking statements are based on our beliefs and assumptions based on information available at the time the assumption was made. These statements are not guarantees of our future performance and are subject to a number of risks and uncertainties that may cause actual results to differ materially from those contemplated by the forward-looking statements. Some of the factors that could cause such differences include cost of fuels to produce electricity, legislative or regulatory developments, competition, global capital markets activity, changes in prevailing interest rates, currency exchange rates, inflation levels, unanticipated accounting or audit issues with respect to our financial statements or our internal control over financial reporting, plant availability, and general economic conditions in geographic areas where TransAlta Corporation operates. Given these uncertainties, the reader should not place undue reliance on this forward-looking information, which is given as of this date. The material assumptions in making these forward-looking statements are disclosed in our 2008 Annual Report to shareholders and other disclosure documents filed with securities regulators.

Unless otherwise specified, all dollar amounts are expressed in Canadian dollars.

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Outline

Financial strategy

2008 Year in review

2009 First quarter and full year financial outlook

Financial strength and balanced capital allocation

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Financial strategy creates near and long-term shareholder value

Maintain financial strength and flexibility

Maintain capital discipline

Maintain focus on IRR, ROCE and TSR objectives

Financial strength provides competitive advantages in a long-cycle, capital intensive, cyclical industry

21

2008 Financial Results: A record year

9.7%

29%

$847

$1.00

$1.53

$1.31

$309

$264

2007

9.8%

-24%

$1,038

$1.08

$1.18

$1.46

$235

$290

2008

Comparable Return on Capital Employed (ROCE)

Dividends

Cash flow from operations (MM)

Comparable Earnings

Per share

Total Shareholder Return

Net Earnings

Net earnings (MM)

Comparable earnings (MM)

Results

$0.66$0.82

$1.16$1.31

$1.46

$0.25

$0.50

$0.75

$1.00

$1.25

$1.50

$1.75

2004 2005 2006 2007 2008

Comparable earnings per share

Cash flow from operations

$591 $620$490

$847

$1,038

$0

$200

$400

$600

$800

$1,000

$1,200

2004 2005 2006 2007 2008

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2009 Q1 comparable earnings

$0.17$0.21Basic and diluted earnings per share

$0.50$0.18Comparable earnings per share

$ 99$36Comparable Earnings (MM)

$0.27$0.29Cash dividends declared per share

$33$42Net Earnings (MM)

12,173

86.4

Q1 2009

91.8Availability (%)

13,226Production (GWh)

Q1 2008Results

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$0.0

$0.5

$1.0

$1.5

$2.0

$2.5

Credit Lines Utilized Credit Lines Available

$BB

Mar. 31, 2008 Mar. 31, 2009$0.0

$0.5

$1.0

$1.5

$2.0

$2.5

Credit Lines Utilized Credit Lines Available

$BB

Mar. 31, 2008 Mar. 31, 2009

Strong balance sheet + stable credit ratios + solid liquidity = long-term financial stability

Cash flow to total debt

0

12

34

5678

2005 2006 2007 2008

35%

40%

45%

50%

55%

60%

2005 2006 2007 2008

0%

5%

10%

15%

20%

25%

30%

35%

2005 2006 2007 2008

Cash flow to interest

Committed credit lines Debt to total capital

Min 25%

Min 4x

Max 55%

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Balanced and disciplined capital allocation supports value creation through market cycles

Divest or improve non-core and under-performing assets

Portfolio

Optimization

Provide shareowners sustainable dividend growth; payout ratio of 60 - 70% of comparable earnings

Dividend

Projects must deliver unlevered, free cash, after tax IRR >10%:

Growth

Investment

Provide shareowners incremental return of capital in absence of value-creating investment opportunities

Share

Buyback

Priority Direction

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President and CEO’s ReportSteve Snyder

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1.28

1.961.76

06 07 08

$1,038

$490

$847

06 07 08

(MM)$1.31

$1.16

$1.46

06 07 08

9.8%

9.0%

9.7%

06 07 08

In 2008 we achieved record resultsRecord comparable earnings

Record cash flow from operations

Safety IFR reducedComparable return on capital employed

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Capital allocation balances growth with…..

200920112011/2012

53 MW225 MW46 MW

Sundance 5Keephills 3Keephills 1&2

12/2008200920102011

96 MW66 MW66 MW72 MW

Kent HillsBlue TrailSummerview IIArdenville

CompletionSizeProject

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…returning capital to shareholders

$883Free Cash Flow Allocated

$130Share Buyback

$212Dividend

$541Growth Investment

2008Capital Allocation (MM)

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CANADA

UNITED STATES

AUSTRALIA

Wholesale generator & marketer

in Western Canada and U.S.

Low to moderate risk

Diversified portfolio

Financial strength

Balanced capital allocation

Sustainable strategy to deliver long-term yield and capital appreciation

TransAlta’s strategy

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Key operating principles

Operational excellence

Cost disciplineLong-term maintenance planningSafety, safety, safety

Environmental leadership

Leader in technologyLeader in renewablesLeader in sustainability

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Strategy paying off in 2009

Contracting provides earnings security

Restoring Alberta Thermal availability a priority

Driving for greater efficiency and cost containment

Maintaining balance sheet strength

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Asia & Oceania38%

Africa4%

Canada 2%

U.S. & Mexico22%

Central and South America

4%

Europe16%

Eurasia9%

Middle East5%

Canada – a small part of the climate challenge

World CO2 Emissions from the Consumption and Flaring of Fossil Fuels

Source: Energy Information Administration (EIA), 2006

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0500

1,0001,5002,0002,5003,0003,5004,0004,500

United S

tates

China

Japa

nInd

iaGerm

any

United K

ingdo

mRus

siaFra

nce

Brazil

Italy

Spain

Mexico

Canad

aSouth

Korea

Iran

Indon

esia

Australi

aTa

iwanTurk

eyNethe

rlands

Conventional Thermal Hydro Nuclear Renewable

Coal and fossil fuels generate 60% of world’s electricity

Top 20 Industrialized Nations Net Generation by Type

Source: Energy Information Administration (EIA), 2006

Billion Kilowatthours

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Project Pioneer – leading the world in CCSWe are advancing Canada’s first large-scale project to retrofit a power

plant to capture and store 1M tonnes of CO2 by 2013

Carbon Capture and Storage

CO2 returned

Energy Input (oil/gas)

Energy Input (coal)

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Dedicated to building a sustainable company...

..and powering future generations