Philip CoxChief Executive Officer

EEI ConferenceLondon, February 2006

IPR in the industry value chain

Transmission Distribution Supply Customer

Combined heat & power (CHP)Gas transportation

Coal mining

Retail(Australia)

Shows IPR’s presence in the value chain

SeawaterDesalination

FuelSupply

WholesaleGeneration

A leading global power generatorPortfolio approach - regional focus

Key Hydro Coal Gas Other

Hazelwood

Pelican PointSynergen

Hays Midlothian I & II

Hartwell

Milford BlackstoneRugeley

Oyster Creek

Bellingham

Pego

Australia

EcoEléctrica

Loy Yang B

Kwinana

Canunda

Paiton

Shuweihat

TurbogásSpanish Hydro

Gross capacity in operation 28,793 MWNet capacity in operation 16,642 MWNet capacity under construction 1,729 MW

SEAgas pipeline

Europe

Asia

North America Deeside

HUBCO

KAPCO

Uni-Mar

Malakoff

Pluak DaengAl Kamil

ISAB

DerwentFirst Hydro

Uch

Saltend

HiddTihama

Ras Laffan

IPR Opatovice

UAN

Middle East

Capacity analysisNet MW geography and fuel type

28%

35%

Asia NorthAmerica

Europe

Australia

Geography

19%

13%

MiddleEast

6% 25%

62%

Coal

Gas

Oil3%

Fuel

9%

Pumpedstorage

Wind 0.5%Hydro 0.5%

Excludes assets under construction

Balanced approachPPA 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

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

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)

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

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

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

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

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

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

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

Financial highlights9 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)

Geographic analysisRegional split of profit from operations

-30

0

30

60

90

120

150

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.

NorthAmerica

Europe MiddleEast

Australia Asia

79

41

105

78

1816

145

55

28

-6

YTD 2004 YTD 2005

£m

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