1. Preliminary Results March 2008 International Power Preliminary Results Year ended 31 December 2007

2. Preliminary Results March 2008 International Power This presentation does not constitute an invitation to underwrite, subscribe for, or otherwise acquire or dispose of any International Power plc shares. This presentation contains certain forward-looking statements with respect to the financial condition, results, operations and businesses of International Power plc. These statements and forecasts involve risk and uncertainty because they relate to events and depend on circumstances that will occur in the future. There are a number of factors that could cause actual results or developments to differ materially from those expressed or implied by these forward-looking statements and forecasts. Past performance is no guide to future performance and persons wishing to invest in International Power should consult an independent financial advisor before doing so. Disclaimer

3. Preliminary Results March 2008 International Power Philip Cox Chief Executive Officer

4. Preliminary Results March 2008 International Power Highlights  Good financial performance –profit from operations of £904 million - up 17% –EPS of 27.1p - up 21% –strong free cash flow of £653 million - up 43% –29% increase in full year dividend recommended from 7.9p to 10.16p  Regional headlines –strong performance in Europe –disappointing performance in Australia –cool US summer –good performance in Middle East and Asia  Portfolio growth continues –Maestrale, Fujairah F2, Elecgas and Uch  Active portfolio management –Malakoff disposal and common ownership platform for UK assets  Expect 2008 to be another year of growth

5. Preliminary Results March 2008 International Power All numbers in this presentation exclude exceptional items and specific IAS39 mark to market movements, unless stated otherwise Financial Review Mark Williamson, CFO

6. Preliminary Results March 2008 International Power Income statement North America Europe Middle East Australia Asia Corporate costs Profit from operations Interest PBT Tax Minority interest Profit for the year EPS Total DPS Dividend payout ratio 136 574 68 82 96 (52) 904 (308) 596 (113) (77) 406 27.1p 10.16p 37.5% 20072006 change Year ended 31 December 101 450 52 124 91 (45) 773 (248) 525 (122) (71) 332 22.4p 7.9p 35% 28% 31% (34%) 5% 17% 14% 22% 21% 29% £m

7. Preliminary Results March 2008 International Power Profit from operations up 17% 500 £m £904m £773m £35m £124m £16m (£42m) £5m (£7m) 600 700 800 900 1,000 2006 PFO North America EuropeMiddle East AustraliaAsiaCorporate Costs 2007 PFO

8. Preliminary Results March 2008 International Power North America Texas  Full year contribution from Coleto Creek –dust emissions control installation complete  Mild weather  Hays extended outage complete New England  Forward capacity market Profit from operations up 35% PAT of JVs and associates PBIT of subsidiaries £101m £136m 20062007 £108m £73m £28m

9. Preliminary Results March 2008 International Power Europe  Strong contribution from Deeside, Rugeley and First Hydro  First full year contributions from Levanto and Indian Queens  Four month contribution from Maestrale in 2007  ISAB impacted by change of fuel indexation and planned outage Profit from operations up 28% £450m £574m 20062007 £521m £381m £69m £53m PAT of JVs and associates PBIT of subsidiaries

10. Preliminary Results March 2008 International Power First Hydro performance Another excellent year  2006 benefited from: –high gas prices –high power price volatility –unreliable capacity from coal and nuclear  2007 benefited from: –fewer coal plants to provide frequency response –increased water availability –gas and power price volatility –2007 peak/off peak differential helped by low phase 1 CO 2 prices PFO up 12% £119m £133m 20062007 (1) First Hydro Company reported results are under UK GAAP (1)

11. Preliminary Results March 2008 International Power  Additional capacity on-line at Tihama, Ras Laffan B and Umm Al Nar  Hidd development fee in H1 2006  Fujairah F2 development fee in H2 2007 Middle East Profit from operations up 31% £68m 20062007 £44m £32m £52m £20m £24m PAT of JVs and associates PBIT of subsidiaries

12. Preliminary Results March 2008 International Power  Planned outages at Pelican Point and Hazelwood  Unplanned outages at Loy Yang B and Hazelwood  Interconnector constraint due to bushfire  Inter-regional pricing differences  2008 pricing significantly stronger Profit from operations down 34% £124m £82m 20062007 £83m Australia £121m PAT of JVs and associates PBIT of subsidiaries

13. Preliminary Results March 2008 International Power Asia  KAPCO impacted by end of tax holiday  Strong operational performances and high load factors led to generation and availability bonuses  Completed sale of Malakoff Profit from operations up 5% £91m £3m £96m £14m 20062007 £88m £82m PAT of JVs and Associates PBIT of subsidiaries

14. Preliminary Results March 2008 International Power Effective tax rate and interest cover PFO JVs and associates Interest Tax Minority interest PBIT Total interest Subsidiaries JVs and associates Interest cover Profit before total tax Total tax Subsidiaries JVs and associates Effective tax rate 2.7x2.6x 904 91 60 - 151 1,055 (308) (91) (399) 656 (113) (60) (173) 26% 773 99 55 1 155 928 (248) (99) (347) 581 (122) (55) (177) 30% 20072006 Year ended 31 December £m

15. Preliminary Results March 2008 International Power Exceptional items Profit on disposal of Malakoff Profit on partial disposal of UK subsidiaries Impairment of Saltend gas contract Provision against investment in Biox Impairment reversal of Deeside Compensation in respect of TXU tolling contract Compensation for breach of contract Exceptional gain – pre tax Remeasurement of net deferred tax liabilities of Maestrale Taxation on impairment of Saltend gas contract Taxation on Deeside impairment reversal Taxation on compensation from TXU Exceptional gain – post tax - 36 14 5 55 - (11) (4) 40 115 174 (47) (9) - 233 49 14 - 296 2007 2006 £m Year ended 31 December £m

16. Preliminary Results March 2008 International Power Free cash flow Operating cash flow from subsidiaries Dividends - JVs and associates Capex - maintenance Cash generated from operations Interest paid Tax paid Free cash flow £m 784 113 (128) 769 (256) (57) 456 992 145 (71) 1,066 (312) (101) 653 20072006 Year ended 31 December 39% 43% % change 2007 free cash flow enhanced by:  Working capital reductions, including reduced margining and investment deposits with counter parties  Lower than average maintenance capital expenditure in 2007 £m

17. Preliminary Results March 2008 International Power  Includes only subsidiaries  Intervals between major maintenance varies between three and four years. 2007 was a year of low spend  Average annual cost of current portfolio c.£120m Capital expenditure - maintenance Maintenance capex £72m 20052007 £128m 20062008e £71m c£130m

18. Preliminary Results March 2008 International Power Movement in net debt Free cash flow Growth capex Acquisitions and investments Disposals Exceptional receipts - TXU and contract compensation Dividend paid FX & other Dividends paid to minorities Increase in net debt Opening net debt Acquired net debt Closing net debt 456 (142) (818) 1 19 (67) 271 (54) (334) (3,060) (181) (3,575) 653 (160) (842) 418 - (160) (250) (35) (376) (3,575) (711) (4,662) 20072006 Year ended 31 December £m

19. Preliminary Results March 2008 International Power Balance sheet Non-current assets Goodwill and intangibles PP&E Investments Other long-term assets Net current (liabilities)/assets Non-current liabilities Net debt Net assets Gearing Debt capitalisation Net debt of JVs and associates 425 4,435 1,290 1,270 7,420 14 (1,119) (3,575) 2,740 130% 57% (1,524) 901 5,721 1,292 1,530 9,444 (355) (1,420) (4,662) 3,007 155% 61% (1,297) 20072006 £m As at 31 December £m

20. Preliminary Results March 2008 International Power Capital structure and funding  Robust capital structure  Non recourse debt markets open for business –project refinancing –new project financing  Fixed interest rate is a significant portion of gross debt

21. Preliminary Results March 2008 International Power Net debt structure Cash and cash equivalents Recourse debt Convertible bond (2023) (2) Convertible bond (2013) (2) Non recourse debt IPM - acquisition debt IPM - Mitsui preferred equity North America Europe Middle East Australia Asia Total net cash/(debt) 1,161 (115) (140) (255) (243) (151) (876) (2,913) (315) (1,035) (35) (5,568) (4,662) Total £m IPR Corporat e (1) Project debt is secured solely on the assets and cash flow of the project concerned (non recourse) (2) The convertible bonds are shown at their final maturity date although they can be converted earlier As at 31 December 2007 Project cash /(debt) (1) 290 (115) (140) (255) - 35 871 - (243) (151) (876) (2,913) (315) (1,035) (35) (5,568) (4,697) JVs and associates off-balance sheet net debt (1) - (158) (195) (612) (62) (270) (1,297) Maturity 2023 2013 2012 2008 2010-2013 2010-2026 2016-2025 2008-2019 2020 Maturity 2013-2019 2009-2020 2021-2030 2009 -2012 2008-2018 £m

22. Preliminary Results March 2008 International Power 65-110bp110-165bpMargin 23 year term20 year termTenor US$2,140mUS$1,330mAmount Fujairah F2 (December 2007)Umm Al Nar (June 2003) 115 – 140bp120-180bpMargin 10 year termTrA: 15 year term/TrB 9 year termTenor A$190mA$240mAmount Pelican Point (February 2008)Pelican Point (May 1999) Pricing reduced by 25bp ConfidentialMargin 20102008 (later extended to 2009)Tenor US$850mUS$640mAmount Extended facility (October 2007)Initial facility (June 2005)Corporate revolver Debt market update Post credit crunchPre credit crunch 65-100bp50 – 65bpMargin 27 year term14 year termTenor €494m€420mAmount Elecgas (March 2008)Tejo (June 2006)

23. Preliminary Results March 2008 International Power Interest rate exposure % of Debt Fixed  Policy is to keep fixed interest rate on approximately 70% of gross debt  Cash on deposit is held at variable interest rates  At 70% fixed, a 100 basis points change in interest rates equates to approximately a 0.3p change in EPS 0 20 40 60 80 100 200720082009201020112012

24. Preliminary Results March 2008 International Power PFO (£m) £773m £536m £222m 20042005 2006 Free cash flow (£m) £456m £285m £104m 200420052006 Earnings per share (pence) 22.4p 14.6p 8.6p 200420052006 Dividend per share (pence) 7.9p 4.5p 2.5p 200420052006 Recommended dividend (1) £904m 2007 £653m 27.1p 2007 10.16p Financial summary

25. Preliminary Results March 2008 International Power Philip Cox Chief Executive Officer

26. Preliminary Results March 2008 International Power ERCOT Reserve Margin US  Market fundamentals remain strong  Steady growth in demand  Natural gas price firming – positive for wholesale power prices  2007 summer was cooler than average year –lower peak demand / market heat rates –lower fuel demand also softened prices  ‘Normal’ summer weather will bring increased market heat rates  Margins for coal remain good –Powder River Basin coal price attractive for Coleto Texas 4 6 8 10 12 14 16 200820092010201120122013 Q1 2008 Projection Q4 2007 Projection % Notes: Oak Grove 1,634 MW brought forward to 2010 293 MW of net new capacity additions Wind generation assumed at 8.7% of installed capacity Target Reserve Margin

27. Preliminary Results March 2008 International Power US  Market fundamentals are good  Forward Capacity Market - first auction in February –auction oversubscribed - capacity price $4.25/kW month (2010/2011) –capacity requirements to be met mainly through demand side management New England 0 4 8 12 16 20 20082010201220142016 With new demand-side resources Without new demand-side resources New England Reserve Margin %  IPR’s modern efficient CCGTs well positioned –no significant new build –demand side management initiatives add uncertainty –more reliance on existing higher heat rate plant  RGGI emissions trading system planned to commence in January 2009 –timetable and structure uncertain –IPR CCGTs highly efficient compared to average plant –lightly contracted for 2009 Target Reserve Margin Notes: First FCM auction for 2010/2011 resulted in - 1,188 MW of new demand side resources - 626 MW of new supply additions

28. Preliminary Results March 2008 International Power IPR forecast % of anticipated output for the full year Includes FCM receipts Excludes SO2 costs (1) (2) (3) Commercial summary US Achieved dark spread ($/MWh) Load factor Forward contracted Coleto Creek 2007 29 75% n/a 29 90% 95% 2008 (2) Full Year (1) Midlothian Achieved spark spread ($/MWh) Load factor Forward contracted 14 55% n/a 15 55% 70% (2) Hays Achieved spark spread ($/MWh) Load factor Forward contracted 10 45% n/a 14 55% 70% (2) Achieved spark spread ($/MWh) Load factor Forward contracted New England 2007 16 60% n/a 18 55% 90% 2008 (2) Full Year (3) (1) (3) (4)

29. Preliminary Results March 2008 International Power Europe  Long-term fundamentals remain attractive  Uncertainty on available capacity –restricted running of opted-out coal plant and potential closure before 2015 –further pressure on coal capacity due to rising coal price and carbon costs –ongoing retirement of nuclear –potential unreliability of plant approaching closure –wind generation – unpredictable load factors / availability  Forward gas prices have strengthened –maintains upward pressure on UK wholesale prices UK market fundamentals UK Reserve Margin 0 5 10 15 20 25 30 20082010201220142016 Reserve margin without early LCPD retirements Reserve margin with early LCPD retirements Target Reserve % Notes: Peak demand estimate updated for lower winter 2007 demand Includes impact of 5,912 MW of Nuclear capacity lifetime extensions Wind generation assumed at 35% of installed capacity

30. Preliminary Results March 2008 International Power Europe  Reduced output and lower margins at Rugeley –FGD installation in 2008 – together with planned outage, Rugeley will be off for 4 months –insulated from higher coal costs due to forward contracting –higher CO 2 costs in Phase II  Deeside - relatively light contracted position provides upside from improved market conditions –recent (2008) contracting has locked in improved spreads –high coal price may result in switching from coal to gas  First Hydro –reduction in peak / off peak differential driven by higher overnight prices –continued strong performance from both ancillary and balancing mechanism markets % of anticipated output for the full year (2) Pre cost of CO 2 (1) IPR forecast (3) UK commercial summary Spread £/MWh Load factor Forward contracted 23 70% 60% 23 50% n/a RugeleyDeeside 2007 27 55% 85% 34 65% n/a 200820072008 (3) Full Year (2) n/a 90% 95% n/a 90% n/a Saltend 20072008 (1)

31. Preliminary Results March 2008 International Power Europe  830 MW CCGT, Portugal  IPR and Endesa 50:50 partnership –25 year tolling contract with Endesa  £443m financing complete –IPR equity investment £34m  EPC contractor – Siemens  Commissioning in 2011  Located adjacent to existing Tejo coal plant –benefits from shared services  Excellent organic growth opportunity from: –existing market presence –available site –access to finance New plant Existing Plant Elecgas, Portugal

32. Preliminary Results March 2008 International Power  Significant scale in wind generation –1,199 MW now operational worldwide - 660 MW of operational wind capacity acquired in 2007 - 132 MW under construction brought online –IPR now a leading global wind generator  Established market positions provide strong platform for growth –improved access to developers and turbine manufacturers  Current focus –growth opportunities across our core markets –balanced portfolio approach Strong growth in renewables Europe Canunda LevantoDZ1 MaestraleSchkortleben DZ11 1,199 407 Wind generation year-on-year growth 2006 March 2008 1,200 Kardstadt 11 Horn 9006003000

33. Preliminary Results March 2008 International Power  Strong operational performance with high plant availability  Umm Al Nar all new capacity on line –current total capacity 2,450 MW, 143 MIGD –decommissioning date for original capacity (795 MW) extended to 2010  Ras Laffan B – 920 MW, 30 MIGD operational –135 MW, 30 MIGD expected in H1 2008  Hidd desalination extension – 12 MIGD operational –48 MIGD expected in H1 2008  Fujairah F2 2,000 MW, 130 MIGD Middle East Al Kamil Umm Al NarTihama ShuweihatRas Laffan B Hidd 7,300 5,540 2,817 Middle East year-on-year gross capacity growth 2005 2006 2007 As at 31 December each year Gross MW 1,0002,0003,0004,0005,0006,0007,000

34. Preliminary Results March 2008 International Power Middle East  Awarded Fujairah F2 greenfield IWPP - 2,000 MW and 130 MIGD water –IPR 20%, Marubeni 20%, ADWEA 60%  Successful signing of EPC contract and project financing on attractive terms –20 year Power and Water Purchase Agreement (PWPA)  Close relationships with technology providers – Alstom and SIDEM  Full commercial operation expected by in 2010  Key project to help Abu Dhabi meet growing power demand –forecast average demand growth 8.1% per annum –demand growth driven by over $170 billion* of major residential, commercial and industrial projects over the next 6-8 years * Abu Dhabi Water and Electricity Company (ADWEC) estimate Fujairah F2, UAE

35. Preliminary Results March 2008 International Power Australia  Forward market still good –recent rainfall resulted in some reduction in 2008 forward prices - but low liquidity –but key hydro reservoirs remain at low levels  Portfolio largely contracted for 2008  Australia ratified the Kyoto Protocol in December 2007 –emission trading scheme expected to commence in 2010 –design details expected by end of 2008  Hazelwood low emissions project –key government grant contracts signed –turbine efficiency upgrade / coal drying –pilot CO 2 capture plant Notes: Planned capacity additions 1,153 MW by 2011/12 Inter-connector assumed at 85% of total capacity Wind generation assumed at 10% 10 15 20 25 5 0 Victoria and South Australia Reserve Margin 07/08 Target Reserve Margin 09/1011/1213/1415/16 %

36. Preliminary Results March 2008 International Power Australia (1) IPR forecast % of anticipated output for the full year (2) Achieved average price ($/MWh) Victoria, Hazelwood 2007 3245 2008 Full Year (1) Load factor Forward contracted 95% 85% 95% n/a HazelwoodLoy Yang B 2007 80% n/a 200820072008 Full Year (2) 75% 95% 75% n/a Pelican Point 20072008 (1) Commercial summary

37. Preliminary Results March 2008 International Power Asia  Strong growth in power demand –Pakistan > 10% –Indonesia 5% –Thailand 6%  Robust commercial and technical performance  Focus on high availability –bonus at Paiton - availability 93%  High load factors - record generation in Pakistan –generation bonus at HUBCO - load factor 72%

38. Preliminary Results March 2008 International Power Asia  In-principle agreement to acquire additional 31% of Uch –total IPR shareholding 71% –acquisition price £44m –572 MW plant, PPA till 2023 –strengthens long-term contracted earnings and cash flow –strong positioning using indigenous Pakistan gas  Power demand growing strongly in Pakistan –over 10% per annum –shortage of capacity  Pakistan economy growing at 7% per annum Uch, Pakistan

39. Preliminary Results March 2008 International Power Delivering growth Opportunity flow  Significant opportunities in existing markets –driven by demand growth and capacity retirements –greenfield development and acquisitions  New markets subject to detailed analysis Rising EPC costs  Industry wide development – not a competitive disadvantage  Good long-term relationships with key EPC suppliers  Return levels maintained – evidenced by recent projects  Positive read across for IPR’s existing assets Availability of finance  Project finance available  Continue to execute major projects on attractive terms IPR well positioned

40. Preliminary Results March 2008 International Power Multiple growth opportunities North America  650 MW Coleto Creek plant expansion  New England peaking units for FCM bids  Acquisition opportunities –over 6,000 MW of existing capacity currently on the market Europe  840 MW Eneco CCGT in Netherlands  Acquisition opportunities  100 MW expansion at Opatovice, Czech Republic  Renewables  Opportunities in new markets

41. Preliminary Results March 2008 International Power Middle East  Bids due in 2008 –1,600 MW, 100 MIGD Shuweihat S2, UAE –400 MW, 15 MIGD Salalah, Oman –1,200 MW, 50 MIGD Ad Dur 1, Bahrain –400 MW, Al Qatrana, Jordan –1,000 MW 220 MIGD Raz az Zawr, Saudi Arabia  Strong medium and longer term project pipeline Australia  12,500 MW NSW privatisation  350 MW peaker, NSW  Renewable opportunities Asia  800 MW Paiton III, Indonesia  1,320 MW West Java, Indonesia  450 MW KAPCO expansion, Pakistan  225 MW HUBCO expansion, Pakistan  400 MW Uch expansion, Pakistan  100 MW Thailand  Opportunities in new markets Africa  Up to 2,500 MW (Phase I) Mmamabula, Botswana  Opportunities in new markets Multiple growth opportunities

42. Preliminary Results March 2008 International Power Summary  Good financial performance with strong free cash flow –performance in 2007 reflects portfolio strength  Expect 2008 to be a year of growth –reduced output at Rugeley and lower coal spreads –subdued summer spreads in the US  Continued access to finance and EPC contractors/turbines  IPR well positioned to grow the portfolio –multiple opportunities –greenfield development and acquisitions

43. Preliminary Results March 2008 International Power Appendix

44. Preliminary Results March 2008 International Power Year ended 31 December North America Europe Middle East Australia Asia Regional total Corporate PFO Disposals (see below) - Malakoff sale - Disposal to Mitsui Net finance expense (Loss)/profit before tax Income tax credit/(expense) (Loss)/profit for the year Specific IAS 39 MTM Exceptional Items (21) (135) - (173) (1) (330) - (330) - (16) (346) 96 (250) - (56) - (56) - (56) 115 174 - 233 63 296 (21) (191) - (173) (1) (386) - (386) 115 174 (16) (113) 159 46 2006 10 110 - (50) - 70 - 70 - (26) 44 (10) 34 - 55 - 55 - 55 - 55 (15) 40 10 165 - (50) - 125 - 125 - (26) 99 (25) 74 Total Specific IAS 39 MTM Exceptional Items Total Exceptional items and specific IAS 39 MTM 2007 £m

45. Preliminary Results March 2008 International Power North America Europe Middle East Australia Asia Regional total Corporate costs Profit from operations 12 159 14 26 29 240 (12) 228 20072006 Q1 4 158 5 33 28 228 (11) 217 Profit from operations 62 109 17 20 22 230 (12) 218 20072006 Q3 50 66 13 36 19 184 (12) 172 30 109 15 20 26 200 (12) 188 20072006 Q2 24 84 19 31 28 186 (11) 175 32 197 22 16 19 286 (16) 270 20072006 Q4 23 142 15 24 16 220 (11) 209 Quarterly breakdown Geographic analysis £m