Interim Results Six months ended 30 June 2010

Philip Cox Chief Executive Officer

International Power Interim Results August Highlights Financial highlights Good financial performance Profit from operations of £524m (2009: £550m) EPS of 14.1 pence (2009: 15.4 pence) –up 7% after adjusting for FX and the sale of the Czech business Strong free cash flow of £398m (2009: £326m) –up 22% Interim dividend of 4.39 pence per share (2009: 4.25 pence), up 3% Growth PPAs signed for 76MW of new wind generation capacity in Canada Good progress at 815MW Paiton 3 project and 110MW Thai National Power 2 project Total construction pipeline of 1,400MW (net) p 8 Underlying EPS – up 7% Underlying EPS Czech ,200 1, HUBCO - Laraib TNP2 Paiton 3 T-Power Elecgas IPR European Wind Portfolio Synergen HUBCO - Narowal Fujairah F2 Construction pipeline Net MW

Mark Williamson Chief Financial Officer Financial Review

Interim Results August 2010 International Power Profit from operations Interest PBT Tax Non-controlling interests Profit for the period EPS 524 (191) 333 (64) (54) p Six months ended 30 June 550 (216) 334 (59) (41) p 2009 Restated £m 2009 restated for adoption of IFRIC 12 - Service Concession Arrangements and change in policy relating to retirement benefit obligations 2010 £m Income statement 5 Reduction in PFO reflects the sale of Czech assets in H Excluding Czech assets, EPS up 7% Reduced interest reflects paydown of US debt Effective tax rate, at 22%, includes: –change in profit mix across the Group –resolution of historic tax issues

Interim Results August 2010 International Power H1-on-H1 PFO change North America reflects lower gas prices and a reduced Coleto Creek provision release Europe higher following Rugeley FGD commissioning and ISAB return to service Middle East continues to perform well, delivering high availability Australia benefited from good performance at Loy Yang B and Simply Energy 2010 also benefited from a 0.8p uplift on FX movements 6 H p H p North America Europe Australia Middle East Asia Corporate £550m £(9)m £25m £13m £8m £(1)m £(3)m £524m H excl-Czech 12.4p £491m £(59)m Czech 7%

Interim Results August 2010 International Power Free cash flow Free cash flow up 22%, or 33% excluding the Czech assets Working capital benefited from the settlement of hedges on the UK portfolio Interest lower following pay-down of US debt H H £326m £33 £18 £(4) £6 £(11) £398m PFO Maint. capex Net interest paid Tax paid (net) Dividends JV & assoc £56 Working capital 7 H excl-Czech £300m £(26) Czech

Interim Results August 2010 International Power 8 Net debt structure Cash and cash equivalents Recourse debt Convertible bond (2023) Senior unsecured note (2017) Convertible bond (2015) Convertible bond (2013) Non-recourse gross debt IPM - acquisition debt North America Europe Middle East Australia Asia Total net debt 1,446 (152) (198) (493) (170) (1,013) (276) (877) (2,528) (362) (1,182) (43) (5,268) (4,835) Total £m IPR Corp As at 30 June 2010 Project 737 (152) (198) (493) (170) (1,013) - (276) (276) (877) (2,528) (362) (1,182) (43) (5,268) (4,559) JVs and associates off-balance sheet (166) (491) (1,013) (78) (526) (2,274) (1,919) Maturity Maturity £m Maturity indicates the first bullet and the last year of project debt amortisation within each region No significant project debt refinancing in 2010 and Cash/(Debt)

Philip Cox Chief Executive Officer

International Power Interim Results August 2010 North America 10 Power demand –Texas: cold winter but mild summer, lower congestion in South Zone –New England: strong demand in May, June and July –PJM: positive weather impact June/July Gas prices –some recent volatility but overall prices remain low Capacity auction –New England: May 2013 to June 2014 auction cleared at $2.52, consistent with previous auction –PJM: 2013 to May 2014 capacity auction cleared at $27.73/MW day, up from $16.46/MW day Operational cost savings –good progress, savings of $5m to $10m expected IP Canada renewables –PPAs signed for 76MW of additional capacity –expected to be operational 2011

International Power Interim Results August 2010 Europe - UK Jan to May power demand down slightly Rugeley, Saltend, Deeside heavily contracted for 2010 First Hydro impacted by lower volatility and wholesale prices –partially offset by ancillary services including contracted reserve Government programme – some policy areas of importance to IPR –IPR fully involved in the environmental policy development process GW Weekday Peak Demand Headline Availability 2009 Week Ahead Availability Outturn Availability

International Power Interim Results August Continental Europe Operationally plants performing well ISAB second unit returned to service as planned Italy remains committed to the renewables sector –Government re-confirmed renewables target in July –CV price support mechanism for 2010 maintained –system operator reviewing 2011 CV support mechanism Construction of Elecgas and T-Power on track to commence operation in H Development projects –development agreement signed with GALP for 50% of 800MW CCGT Sines project in Portugal

International Power Interim Results August 2010 Middle East and Asia 13 High commercial availability across all assets Business performing well and in line with expectations Fujairah F2 construction programme progressing with full commercial operation expected in 2010 Paiton 3 and TNP 2 construction progressing well New Developments –Vietnam – IPR and partners awarded the development of 1,200MW Son My project by the Government –Indonesia – Central Java 2,000MW coal, pre-qualified, bid due November Fujairah F2 Paiton 3

International Power Interim Results August Australia Good performance – no change to pricing since year-end results in March –maximum price increased to $12,500/MWh Climate change policy under new PM released in July –CPRS delayed until after the end of 2012 Kwinana

International Power Interim Results August Outlook Good performance in the first half Merchant assets remain well positioned –to capture value from recovery/volatility in market conditions Portfolio of long-term contracted assets continues to perform well Overall outlook for the year remains unchanged

Interim Results Six months ended 30 June 2010