1 BIG STUD Investment Club Inaugural Meeting 17 May 2009 International Power (IPR) Recommended Share

2 Who the heck is International Power? International Power is a leading multinational, independent power generator with 21.4 GW (net) of capacity and 1.0 GW (net) under construction FTSE 100 company Created by de-merger of National Power into International Power and Npower Diverse geographical portfolio and energy mix Rapid growth over last 10 years GeographyFuel Mix

3 Strong financials over last five years Last five years, compound annual growth: –EPS +35% –DPS +37% –Cash from operations +55% Cash from operations commensurate with net income (103%) Highly geared, but standard in industry Debt to equity: –IPR216% –Scottish & Southern172% –National Grid698% –Centrica177% Current trades at 8% premium to book value PEG 0.25 (current PE / 5-year EPS growth) Strong growth in earnings, dividends per share and cash from operations. Healthy profit margins.

4 Five YearThree Year One YearYear To Date So how has it performed vs. FTSE and sector? Strong relative performance versus both FTSE and FTSE utilities index. Up circa 120%. FTSE flat. Strong relative performance versus FTSE. Underperformed sector. Down circa 15%. FTSE down 25%. Poor relative performance against both FTSE and sector. Down circa 35%. FTSE down 30%. Strong relative performance against both FTSE and sector. Up circa 15%. FTSE up 2%. Strong long-run performance vs. FTSE and FTSE utilities index. Extremely poor 2008 (especially October). Good 2009, so far, particularly since March. +120% +15% -35% -15% IPR Sector All Share FTSE +120% vs. FTSE+10% vs. FTSE -5% vs. FTSE+13% vs. FTSE

5 Analyst opinion is positive Current price at low end of analyst 12-month estimates. Median estimate represents +13% increase from current price. Consensus rating is ‘outperform’. Financial TimesReuters Current price is almost exactly at the bottom of analysts 12-month price targets, indicating good perception of upside. Consensus rating is ‘outperforrm’. Analysts opinion has improved in last three months.

6 Forecasts Management and analysts expect earnings per share in 2009 to be marginally lower than 2008, due to difficult pricing conditions in UK and US markets However, final dividend announced for 2008, to be paid June 2009, is 20% higher than 2007 Management expect strong cash flow and financial position in 2009 with no major re-financing required Earnings Per Share (pence)

7 Summary: why buy IPR? Strong growth in EPS relative to price over last five years Consistent and strong growth in EPS and dividends Growing global demand for energy: access to growing markets Diverse global exposure and fuel mix: benefits of diversification Attractive dividend yield Positive analyst opinion and relative strength versus FTSE and sector Relatively low risk: FTSE 100 company, strong financials and track-record