Philip Cox

1
Philip Cox
Chief Executive Officer
Investor Presentation September 2005
2
A leading global power generatorPortfolio
approach - regional focus
North America
Europe
First Hydro
Saltend
Deeside
Derwent
Rugeley
EOP
Milford
Blackstone
Spanish Hydro
Turbogás
Uni-Mar
Bellingham
Pego
Hays
Hartwell
ISAB
UmmAl Nar
KAPCO
Midlothian I II
Oyster Creek
Asia
Uch
Shuweihat
HUBCO
EcoEléctrica
Al Kamil
Pluak Daeng
Middle East
Key Hydro Coal Gas Other
Malakoff
Paiton
Synergen
Kwinana
Pelican Point
SEAgas pipeline
Note This map shows net capacity for IPRand
excludes assets under construction
Canunda
Valley Power
Hazelwood
Loy Yang B
Australia
Gross capacity in operation 28,181 MWNet
capacity in operation 16,372 MWNet capacity
under construction 1,706 MW
3
Capacity analysisNet MW geography and fuel type
Geography
Fuel
NorthAmerica
Asia
Gas
13
Australia
62
28
20
25
4
35
9
Wind 0.5
MiddleEast
Hydro 0.5
Coal
Pumpedstorage
Oil3
Europe
As at 30 June 2005
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 Bl
ackstone Milford Contracted Hartwell Oyster
Creek EcoElectrica
Status Merchant Merchant Merchant Merchant Merch
ant PPA 2019 PPA 2014 PPA 2022
Gross MW 1,650 1,100 570 570 160 310 425 524 5,
309
IPR Own 100 100 100 100 100 50 50 50
Net MW 1,650 1,100 570 570 160 155 213 183 4,60
1
Market (Zone) Ercot (North) Ercot
(South) Nepool (Sema) Nepool (Sema) Nepool
(Sema) Serc (Southern) Ercot (Houston) Puerto
Rico
5
North America2006 Texas peak spreads
High gas price environment - a plus for IPRs
modern plants
Spark Spread (/MWh)
40
ERCOT 2006 June to August Peak Spreads
35
30
North
25
South
20
15
10
Jan
Feb
Mar
Apr
May
Jun
Jul
2005
Based on 7.375 Heat Rate, Heat Rates vs. Henry
Hub Gas
6
Europe

• 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
• 7th 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 1
81 57 5,744
Fuel Type Coal Gas Gas Gas Hydro Coal Gas Coal
Gas Asphalt Hydro
Plant name UK Rugeley Derwent Saltend Deeside Fir
st Hydro Rest of Europe Pego Turbogas EOP Unimar
ISAB Spanish Hydro
Country England England England Wales Wales Po
rtugal Portugal Czech Republic Turkey Italy
Spain
7
EuropeSaltend acquisition

• 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

Saltend
Deeside
Derwent
First Hydro
Rugeley
Saltend
8
EuropeUK 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

Market Spread
Coal
Gas
2005
2006
2004
2005
2006
2004
8
15
17
7
25
37
Peak
4
9
3
29
Baseload
8
18
Pre cost of CO2 (August 2005 data)
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

Power Contract Expiry 2017 2025 2026 2033 2026
2026
Net Desal/ HeatCapacity(MIGD) - 20 32 52 - - 5
5
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
Country Oman UAE UAE Qatar Saudi Arabia UAE
Plant name Al Kamil Shuweihat Umm Al Nar Under
Construction Ras Laffan B Tihama Umm Al Nar
Fuel Type Gas Gas Gas Gas Gas Gas
10
Middle East Desalination

• 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

Plant Desal. capacity (MIGD) Shuweihat 100 Umm
Al Nar 187 Ras Laffan B 60 Total 347
Shuweihat
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 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 Victoria Victoria SA
Victoria SA SA SA WA
12
AustraliaMerchant 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
  (gt75)

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 Gas Coal
Country Indonesia Malaysia Pakistan Pakistan Pak
istan Thailand Malaysia
Plant name Paiton Malakoff HUBCO KAPCO Uch Pluak
Daeng Under Construction Malakoff
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

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
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)

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

18
Appendix
19
Income statement
Six months ended 30 June
Year ended31 December
2004
2004
2005
m
PBIT from subsidiaries PAT from JVs and
associates Profit from operations Interest PBT Tax
Minority interest Profit for the periodEPS
(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
All numbers exclude exceptional items
2004 EPS is restated to reflect the Rights
issue and IFRS
20
Geographic analysis
Six months ended 30 June
Year ended31 December
Profit from operations
2004
2004
2005
m
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
Note Profit from operations EBIT from
subsidiaries plus PAT from JVs and
AssociatesAll numbers exclude exceptional items
21
Free cash flow
Six months ended 30 June
Year ended31 December
2004
2004
2005
m
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
22
Cash flow
Six months ended 30 June
Year ended31 December
2004
2004
2005
m
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
23
Net debt structure
JVs / Associates off-balance sheet net debt
As at 30 June 2005
Project cash (Debt)
IPRCorporate
m
Total
290
409
Cash and liquid resources
699
Recourse debt
-
(32)
Convertible bond (2005)
(32)
-
Convertible bond (2023)
(117)
(117)
-
-
(149)
(149)
-
-
Non recourse debt
IPM Acquisition debt
(349)
(349)
-
(166)
(166)
IPM Mitsui preferred equity
-
-
(487)
North America
(487)
(218)
-
(872)
Europe
(872)
(273)
-
(181)
Middle East
(181)
(321)
-
(1,097)
Australia
(1,097)
(28)
Asia
(23)
-
(23)
(581)
-
(1,421)
(3,175)
(3,175)
Total net debt
(2,766)
(1,421)
(2,625)
141
Project debt is secured solely on the assets of
the project concerned (non recourse)