1. Philip Cox Chief Executive Officer EEI Conference London, February 2006

2. IPR in the industry value chain TransmissionDistributionSupplyCustomer Combined heat & power (CHP)Gas transportation Coal mining Retail (Australia) Shows IPR’s presence in the value chain Seawater Desalination Fuel Supply Wholesale Generation

3. A leading global power generator Portfolio approach - regional focus Key Hydro Coal Gas Other Hazelwood Pelican Point Synergen Hays Midlothian I & II Hartwell Milford Blackstone Rugeley Oyster Creek Bellingham Pego Australia EcoEléctrica Loy Yang B Kwinana Canunda Paiton Shuweihat Turbogás Spanish Hydro Gross capacity in operation 28,793 MW Net capacity in operation 16,642 MW Net capacity under construction 1,729 MW SEAgas pipeline Europe Asia North America Deeside HUBCO KAPCO Uni-Mar Malakoff Pluak Daeng Al Kamil ISAB Derwent First Hydro Uch Saltend Hidd Tihama Ras Laffan IPR Opatovice UAN Middle East

4. Capacity analysis Net MW geography and fuel type 28% 35% Asia North America Europe Australia Geography 19% 13% Middle East 6% 25% 62% Coal Gas Oil 3% Fuel 9% Pumped storage Wind 0.5% Hydro 0.5% Excludes assets under construction

5. Balanced approach PPA and merchant markets  Earnings and cash flow from - merchant assets - medium term contracted assets - PPA/long term contracted assets  Visible and stable earnings and cash flow from long term contracted assets  Overlaid by merchant markets with upside potential  Balanced risk reward profile

6. The IPR portfolio approach  Risk mitigation across 5 core regional markets  Access to optimum growth opportunities - greenfield - acquisitions  In depth regional market knowledge/customer contacts  Balance of contracted and merchant markets  Knowledge/skills transfer

7. Capital structure  Non-recourse project debt the fundamental building block  Liquid resources at IPR corporate - cash - headroom - borrowing capacity  Free cash flow generation strong and consistent  Debt capitalisation 58% (at 30 September 2005)

8. Portfolio performance  High quality asset portfolio - robust operational performance  Strong financial performance - earnings underpinned by cash flow  Growth opportunities - growing markets – 2% to 8% demand growth rates - acquisition opportunities - organic growth / greenfield opportunities  Progressive dividend policy

9. North America  Merchant & contracted capacity  Key merchant markets - Texas & New England - moving towards market recovery  Merchant capacity - key competitive advantages - modern, highly efficient - solid capital structure  Improved spark spreads, particularly in Texas  Capacity payments - Nepool - represents upside potential  Full market recovery expected in 2007 - 2009

10. Europe  Significant growth in capacity and profits - EME, Turbogas, and Saltend acquisitions  Contracted portfolio performing well UK  Key merchant market - 7th largest generator with 7% market share  Overall improving market conditions - improved coal spreads - favourable market conditions for First Hydro  Robust UK portfolio - benefiting from fuel diversity

11. Middle East  Creation of new region since 2000 - six projects in six years - portfolio of long-term contracted assets  Power and desalination  All operational assets performing well  3.6 GW (gross) construction programme  Opportunity rich markets - strong demand growth for power and water - pipeline of further projects  Experienced development, construction management and operational team in place

12. Australia  Largest private power generator in Australia  Diverse and multi-state business - balanced/ integrated portfolio - blend of fuel types  No major short term change in electricity price environment - supply/demand balance remains attractive - demand peaks required to expedite price increases  EnergyAustralia retail partnership - excellent strategic fit - increased access to domestic market

13. Asia  All long term contracted assets - IPR plant operator for most assets  Operational performance - key for contracted assets - robust performance - high availability and high reliability  All assets delivering solid financial performance - good cash flow

14. Acquisition track record  EME international portfolio acquisition completed in late 2004 - smooth integration into IPR portfolio - significantly earnings enhancing  Turbogas, Portugal - acquired in July 2004 - high technical availability - key for contracted assets  Saltend, UK - acquired in July 2005 - favourable gas supply contract - strong cash flow generation  Energy Australia - growing customer base  Hidd, Bahrain - long term offtake contract signed - IPR involved in O&M ahead of completion in July 2006

15. Financial highlights 9 months to 30 September 2005  Good financial performance - EPS 9.6p up 48% - profit from operations up significantly to £345m (2004: £162m)  Profit from operations up in all regions - strong contribution from recent acquisitions - improved performance in the US and the UK  Cash flow strong across the portfolio - free cash flow significantly up at £185m (2004: £69m)

16. Geographic analysis Regional split of profit from operations Note: Profit from operations comprises the sum of profit before interest and tax (PBIT) of subsidiaries and profit after tax (PAT) of joint ventures and associates. Comparatives for 2004 have been presented on this basis. North America Europe Middle East AustraliaAsia 79 41 105 78 18 16 145 55 28 -6 YTD 2004 YTD 2005 £m

17. Summary  A leading global power generator - regional balance - 5 core regions - contracted and merchant markets  Core competencies - greenfield development - acquisitions - financing - plant operations and asset management - trading and commercial structuring  Asset management - delivery of results  Growth opportunities  Portfolio performing well - operationally and financially