TransAlta Renewables
TransAlta Renewables Reports Fourth Quarter and Full Year 2016 Results and Provides Outlook for 2017

March 9, 2017

TransAlta Renewables Inc. ("TransAlta Renewables" or the "Company") (TSX: RNW) reported its financial results for the three months and year ended December 31, 2016.

Comparable EBITDA(1) and comparable Cash Available For Distribution(1) ("Comparable CAFD") for the fourth quarter was $121 million and $69 million, respectively.

Comparable EBITDA for the year was $407 million, significantly higher than the same period in 2015 due to a full year contribution from the acquisition of an economic interest in TransAlta's Australian power generation and gas pipeline portfolio completed in May 2015 and the acquisition of the Canadian Assets (as defined below) in January 2016. Comparable CAFD for the year was $245 million ($1.10 per share) compared to $177 million ($1.08 per share) during the same period last year. Dividends paid for the year totaled $0.88 per share for a payout ratio of 80 per cent, compared to $0.81 per share in 2015 for a payout ratio of 75 per cent.

Net earnings for the quarter were $26 million ($107 million last year), including a $13 million loss due to the increase in valuation of the Class B shares ($7 million in 2015) and a $22 million loss due to the strengthening of the Australian dollar ($66 million gain in 2015). For the year, net loss totaled $2 million (net earnings of $195 million in 2015) including a $142 million loss due to the increase in the valuation of Class B shares (gain of $36 million last year) and a $35 million loss due to the strengthening of the Australian dollar (a gain of $52 million last year). Gain or loss on Class B shares valuation and changes in the Australian dollar are non-cash items.

Today, the Company also declared monthly dividends of $0.07333 per share for holders of record on April 3, 2017, May 1, 2017 and June 1, 2017 payable on each of April 28, 2017, May 31, 2017 and June 30, 2017, respectively.

"TransAlta Renewables continued to deliver on its growth and operational strategies in 2016, resulting in strong performance for the year," said Brett Gellner, President and Chief Executive Officer of the Company. "Our focus for 2017 is to deliver the South Hedland project, deliver strong operational performance, and continue to look for value added growth opportunities."

(1) Comparable EBITDA refers to earnings before interest, taxes, depreciation and amortization including finance lease income and adjusted for certain other items. Adjusted funds from operations (AFFO) includes sustaining capital and distributions to non-controlling interests and excludes the effects of timing and working capital on distributions from subsidiaries of TransAlta in which the Company holds an economic interest. Comparable CAFD refers to AFFO less principal repayments of amortizing debt. These items are not defined under International Financial Reporting Standards ("IFRS") and the way they are calculated changed during 2015. Presenting these items from period to period provides management and investors with the ability to evaluate earnings and cash flow trends more readily in comparison with prior periods' results. Refer to the Non-IFRS Measures section of the Management's Discussion and Analysis ("MD&A") for further discussion of these items, including, where applicable, reconciliations to measures calculated in accordance with IFRS

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TransAlta Renewables Inc.

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