Philip Cox

1
Philip Cox
Chief Executive Officer
EEI ConferenceLondon, February 2006
2
IPR in the industry value chain
Seawater Desalination
Transmission
Distribution
Supply
Customer
Fuel Supply
Wholesale Generation
Retail (Australia)
Combined heat power (CHP)
Gas transportation Coal mining
Shows IPRs presence in the value chain
3
A leading global power generatorPortfolio
approach - regional focus
Europe
North America
First Hydro
Saltend
Deeside
Derwent
Rugeley
IPR Opatovice
Spanish Hydro
Milford
Blackstone
Turbogás
Uni-Mar
Bellingham
Hays
Pego
Hartwell
ISAB
Hidd
Ras Laffan
Midlothian I II
KAPCO
Asia
Tihama
Oyster Creek
UAN
Uch
Shuweihat
Middle East
HUBCO
EcoEléctrica
Al Kamil
Pluak Daeng
Key Hydro Coal Gas Other
Malakoff
Paiton
Australia
Synergen
Kwinana
Pelican Point
SEAgas pipeline
Gross capacity in operation 28,793
MWNet capacity in operation 16,642
MWNet capacity under construction 1,729 MW
Canunda
Loy Yang B
Hazelwood
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Capacity analysisNet MW geography and fuel type
Geography
Fuel
Asia
NorthAmerica
Gas
13
Australia
62
28
19
25
35
6
9
Wind 0.5
MiddleEast
Hydro 0.5
Coal
Pumpedstorage
Oil3
Europe
Excludes assets under construction
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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

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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

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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)

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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

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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 OM ahead of completion in July
  2006

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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)

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Geographic analysisRegional split of profit from
operations
m
145
YTD 2004 YTD 2005
105
79
78
55
41
28
18
16
-6
NorthAmerica
MiddleEast
Europe
Australia
Asia
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.
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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