1 Philip Cox Chief Executive Officer Investor Presentation September 2005.

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Slide 1 1 Philip Cox Chief Executive Officer Investor Presentation September 2005 Slide 2 2 A leading global power generator Portfolio approach - regional focus Key Hydro Coal Gas Other Note: This map shows net capacity for IPR and excludes assets under construction Hazelwood Pelican Point Synergen Hays Midlothian I & II Hartwell Milford Blackstone Rugeley Deeside EOP HUBCO KAPCO Uni-Mar Malakoff Oyster Creek Bellingham Pluak Daeng Pego Al Kamil North America Europe Middle East Asia Australia Umm Al Nar EcoElctrica Valley Power Loy Yang B Kwinana Canunda Paiton Shuweihat Turbogs Spanish Hydro ISAB Derwent First Hydro Uch Gross capacity in operation 28,181 MW Net capacity in operation 16,372 MW Net capacity under construction 1,706 MW Saltend SEAgas pipeline Slide 3 3 Capacity analysis Net MW geography and fuel type 28% 35% Asia North America Europe Australia Geography 20% 13% Middle East 4% 25% 62% Coal Gas Oil 3% Fuel 9% Pumped storage Wind 0.5% Hydro 0.5% As at 30 June 2005 Slide 4 4 North America Merchant & contracted capacity Key merchant markets - Texas & New England emerging from oversupply driven down turn Merchant capacity - key competitive advantages modern, highly efficient solid capital structure Improved spark spreads, particularly in Texas improved trading liquidity Positive PBIT contribution from US merchant fleet in Q2 Confident of full market recovery in 2007 - 2009 Contracted assets performing well Plant name Merchant Midlothian Hays Bellingham Blackstone Milford Contracted Hartwell Oyster Creek EcoElectrica Status Merchant PPA 2019 PPA 2014 PPA 2022 Gross MW 1,650 1,100 570 160 310 425 524 5,309 IPR Own% 100% 50% Net MW 1,650 1,100 570 160 155 213 183 4,601 Market (Zone) Ercot (North) Ercot (South) Nepool (Sema) Serc (Southern) Ercot (Houston) Puerto Rico Slide 5 5 North America 2006 Texas peak spreads 10 15 20 25 30 35 40 JanFebMarAprMayJunJul 2005 ERCOT 2006 June to August Peak Spreads Spark Spread ($/MWh) Based on 7.375 Heat Rate, Heat Rates vs. Henry Hub Gas North South High gas price environment - a plus for IPRs modern plants Slide 6 6 Largest region by installed capacity Significant growth in capacity and profits EME acquisition Turbogas and Saltend acquisition Contracted portfolio performing well UK Key merchant market 7 th largest generator with 7% market share Improving market conditions Portfolio benefiting from fuel diversity Gross MW 1,050 214 1,200 500 2,088 600 990 585 480 528 84 8,319 Net MW 1,050 50 840 500 1,462 270 594 580 160 181 57 5,744 Fuel Type Coal Gas Hydro Coal Gas Coal Gas Asphalt Hydro Plant name UK Rugeley Derwent Saltend Deeside First Hydro Rest of Europe Pego Turbogas EOP Unimar ISAB Spanish Hydro Country England Wales Portugal Czech Republic Turkey Italy Spain Europe Slide 7 7 Rugeley Saltend First Hydro Deeside Derwent 1200 MW CCGT cogeneration facility located in Hull Highly efficient modern plant (53.6%) commissioned in 2000 Acquired in partnership with Mitsui (IPR share 70%) acquired at significant discount to new build Revenue from power and steam sales Favourable gas supply contract Earnings enhancing in first full year Immediately cash generative Complements existing UK portfolio total UK portfolio 5,052 MW (gross) - gas: 1,914 MW - coal: 1,050 MW - pumped storage: 2,088 MW Europe Saltend acquisition Saltend Slide 8 8 Europe UK merchant portfolio High coal spreads principally driven by high gas and carbon prices driving up power prices stable cost of coal ($65 - $70 per tonne-delivered ARA) Improved gas spreads still below new entrant First Hydro benefited from favourable market conditions higher system demand for reserve and response services high plant availability - ensuring maximum value CO2 - currently trading at 20 - 25 per tonne 5.50 - 7.00/MWh gas, and 12.50 to 15.00/MWh coal Peak Baseload Coal 200520062004 Gas 81517 4 8 9 200520062004 72537 3 18 29 Market Spread* * Pre cost of CO2 (August 2005 data) Slide 9 9 Middle East Creation of new region since 2000 five projects in five years portfolio of long-term contracted assets Power and desalination All operational assets performing well 3.6 GW (gross) construction programme on track Opportunity rich markets pipeline of further projects Gross MW 285 1,500 870 2,655 1,025 1,074 1,550 3,649 Net MW 185 300 174 659 410 644 310 1,364 Fuel Type Gas Power Contract Expiry 2017 2025 2026 2033 2026 Net Desal/ Heat Capacity (MIGD) - 20 32 52 - 5 Country Oman UAE Qatar Saudi Arabia UAE Plant name Al Kamil Shuweihat Umm Al Nar Under Construction Ras Laffan B Tihama Umm Al Nar Slide 10 10 Strong growth in demand - a growing business Now the largest private producer of water in the Middle East Excellent construction and operational track record Future desalination opportunities in the Gulf Middle East Desalination Shuweihat PlantDesal. capacity (MIGD) Shuweihat100 Umm Al Nar187 Ras Laffan B 60 Total 347 Slide 11 11 Australia Largest private power generator in Australia Diverse and multi-state business blend of fuel types Scale player 27% market share in Victoria EnergyAustralia Retail partnership EA one of the largest retailers in Australia Growing customer base Excellent strategic fit - increased access to domestic market Gross MW 1,635 1,000 300 n/a 485 360 46 118 3,944 Net MW 1,500 700 126 33.3% 485 360 46 58 3,275 Fuel Type Coal Gas Pipeline Gas Gas & fuel oil Wind Gas Plant name Hazelwood Loy Lang B Valley Power* SEA Gas Pelican Point Synergen Canunda Kwinana * Being sold to Snowy Hydro State Victoria SA & Victoria SA WA Slide 12 12 Australia Merchant markets Key merchant market No major change in electricity price environment supply/demand balance remains attractive liquid forward market sustained demand peaks/trigger required to expedite price increases mild weather continues Portfolio well hedged for the balance of 2005 (>75%) Slide 13 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 Gross MW 1,230 3,130 1,290 1,600 586 118 7,954 1,890 Net MW 385 567 214 575 234 118 2,093 342 Fuel Type Coal Gas/Oil Oil Gas/Oil Gas Coal Country Indonesia Malaysia Pakistan Thailand Malaysia Plant name Paiton Malakoff HUBCO KAPCO Uch Pluak Daeng Under Construction Malakoff Slide 14 14 Global portfolio Portfolio approach delivers: Risk mitigation across 5 core regional markets Access to optimum growth opportunities greenfield acquisitions In depth regional market knowledge/customer contracts Balance of contracted (stable return) and merchant (upside potential) markets Knowledge/skills transfer Slide 15 15 Financial highlights - H1 2005 Good financial performance EPS of 6.7p - up 40% (H1 2004: 4.8p*) profit from operations 233m up 96% (H1 2004: 119m) Profit from operations up in all regions significant increase in Europe and Asia improved performance in the US Cash flow strong across the portfolio free cash flow significantly up at 134m (H1 2004: 41m) EME integration complete 2005 earnings guidance upgraded revised 2005 EPS range of 12.0p - 13.0p *adjusted for Rights Issue Slide 16 16 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 56% (at 30 June 2005) Slide 17 17 Summary A leading global power generator regional balance - 5 core regions contracted and merchant markets Core competencies greenfield development acquisitions financing plant operations trading and commercial structuring Asset management delivery of results Growth opportunities Portfolio performing well operationally and financially Slide 18 18 Appendix Slide 19 19 All numbers exclude exceptional items Income statement Six months ended 30 June 2004 2005m * 2004 EPS is restated to reflect the Rights issue and IFRS Year ended 31 December 2004 PBIT from subsidiaries PAT from JVs and associates Profit from operations Interest PBT Tax Minority interest Profit for the period EPS (basic, pre-exceptional) 138 95 233 (91) 142 (27) (16) 99 6.7p 64 55 119 (42) 77 (15) (2) 60 4.8p* 109 113 222 (77) 145 (25) (8) 112 8.6p Slide 20 20 Geographic analysis Note: Profit from operations = EBIT from subsidiaries plus PAT from JVs and Associates All numbers exclude exceptional items Six months ended 30 June 2004 2005m Year ended 31 December 2004 North America Europe Middle East Australia Asia Regional total Corporate costs Profit from operations 8 112 13 65 53 251 (18) 233 (10) 47 11 59 28 135 (16) 119 (21) 97 20 98 60 254 (32) 222 Profit from operations Slide 21 21 Free cash flow Six months ended 30 June 2004 2005m Year ended 31 December 2004 Operating cash flow from subsidiaries Dividends - JVs and associates Capex - maintenance Cash generated from operations Interest paid Tax paid Free cash flow 215 41 (23) 233 (91) (8) 134 86 45 (42) 89 (34) (14) 41 198 69 (59) 208 (84) (20) 104 Slide 22 22 Cash flow Six months ended 30 June 2004 2005m Year ended 31 December 2004 Free cash flow Growth capex Acquisitions, disposals & investments TXU recovery - exceptional Rights issue Refinancing costs - exceptional Funding from minorities, FX & other Decrease/(increase) in net debt Opening external debt Transitional IAS32/39 adjustment Acquired debt Closing external debt 134 (95) 97 44 - (110) 70 (2,739) 44 - (2,625) 41 (81) (10) - 64 14 (692) - (678) 104 (158) (1,261) - 286 (26) 227 (828) (692) - (1,219) (2,739) * Including capitalised finance costs on acquisition debt Slide 23 23 Net debt structure Total net debt Europe Middle East Asia Australia North America Non recourse debt Convertible bond (2023) Convertible bond (2005) Recourse debt Cash and liquid resources m IPM Acquisition debt (2,625) (3,175) (23) (181) (872) (1,097) (487) (149) (117) (32) 699 Total (349) 141 - - - - (149) - - (117) (32) 290 IPR Corporate (2,766) (3,175) (23) (181) (872) (1,097) (487) - - - 409 Project cash (Debt)* (349) 2015 2017 2007/08 2012/13 2010 2023 n/a Maturity 2012 2005 2008 (166) IPM Mitsui preferred equity (1,421) (581) (321) (273) (28) (218) JVs / Associates off- balance sheet net debt* - (1,421) - - - - * Project debt is secured solely on the assets of the project concerned (non recourse) As at 30 June 2005

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