1

Philip CoxChief Executive Officer

Investor PresentationSeptember 2005

2

A leading global power generatorPortfolio approach - regional focus

Key Hydro Coal Gas Other

Note: This map shows net capacity for IPRand excludes assets under construction Hazelwood

Pelican Point

Synergen

Hays

Midlothian I & IIHartwell

Milford Blackstone

RugeleyDeeside

EOP

HUBCO

KAPCO

Uni-Mar

Malakoff

Oyster Creek

Bellingham

Pluak Daeng

Pego

Al Kamil

North America Europe

Middle East

Asia

Australia

UmmAl Nar

EcoEléctrica

Valley PowerLoy Yang B

Kwinana

Canunda

Paiton

Shuweihat

TurbogásSpanish Hydro

ISAB

Derwent

First Hydro

Uch

Gross capacity in operation 28,181 MWNet capacity in operation 16,372 MWNet capacity under construction 1,706 MW

Saltend

SEAgas pipeline

3

Capacity analysisNet MW geography and fuel type

28%

35%

Asia NorthAmerica

Europe

Australia

Geography

20%

13%

MiddleEast

4%25%

62%

Coal

Gas

Oil3%

Fuel

9%

Pumpedstorage

Wind 0.5%Hydro 0.5%

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

MerchantMidlothianHaysBellinghamBlackstoneMilford

ContractedHartwellOyster CreekEcoElectrica

Status

MerchantMerchantMerchantMerchantMerchant

PPA 2019PPA 2014PPA 2022

GrossMW

1,6501,100

570570160

310425524

5,309

IPROwn%

100%100%100%100%100%

50%50%50%

NetMW

1,6501,100

570570160

155213183

4,601

Market (Zone)

Ercot (North)Ercot (South)Nepool (Sema)Nepool (Sema)Nepool (Sema)

Serc (Southern)Ercot (Houston)Puerto Rico

5

North America2006 Texas peak spreads

10

15

20

25

30

35

40

Jan Feb Mar Apr May Jun Jul2005

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 IPR’s modern plants

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

– 7th largest generator with 7% market share

Improving market conditions Portfolio benefiting from

fuel diversity

GrossMW

1,050214

1,200500

2,088

600990

585 480528

848,319

NetMW

1,05050

840500

1,462

270594580160181

575,744

FuelType

CoalGasGasGas

Hydro

CoalGasCoalGas

AsphaltHydro

Plant name

UKRugeleyDerwentSaltendDeesideFirst Hydro

Rest of EuropePegoTurbogasEOPUnimarISABSpanish Hydro

Country

EnglandEnglandEnglandWalesWales

PortugalPortugalCzech RepublicTurkey Italy Spain

Europe

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

EuropeSaltend acquisition

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

PeakBaseload

Coal2005 20062004Gas

8 15 17

4 8 9

2005 200620047 25 37

3 18 29

Market Spread*

* 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

GrossMW

2851,500

8702,655

1,0251,0741,5503,649

NetMW

185300174659

410644310

1,364

FuelType

GasGasGas

GasGasGas

PowerContract

Expiry

201720252026

203320262026

Net Desal/Heat

Capacity(MIGD)

-203252

--55

Country

OmanUAEUAE

QatarSaudi ArabiaUAE

Plant name

Al KamilShuweihatUmm Al Nar

Under ConstructionRas Laffan BTihamaUmm Al Nar

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

Plant Desal. capacity (MIGD)

Shuweihat 100

Umm Al Nar 187

Ras Laffan B 60

Total 347

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

GrossMW

1,6351,000

300n/a

485360

46118

3,944

NetMW

1,500700126

33.3%485360

4658

3,275

FuelType

CoalCoalGas

PipelineGas

Gas & fuel oilWindGas

Plant name

HazelwoodLoy Lang BValley Power*SEA GasPelican PointSynergenCanundaKwinana

* Being sold to Snowy Hydro

State

Victoria Victoria Victoria SA & Victoria SASASAWA

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 (>75%)

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

GrossMW

1,2303,1301,2901,600

586118

7,954

1,890

NetMW

385567214575234118

2,093

342

FuelType

CoalGas/OilOilGas/OilGasGas

Coal

Country

IndonesiaMalaysiaPakistanPakistanPakistanThailand

Malaysia

Plant name

PaitonMalakoffHUBCOKAPCOUchPluak Daeng

Under ConstructionMalakoff

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

All numbers exclude exceptional items

Income statement

Six months ended 30 June

20042005£m

* 2004 EPS is restated to reflect the Rights issue and IFRS

Year ended31 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

20

Geographic analysis

Note: Profit from operations = EBIT from subsidiaries plus PAT from JV’s and AssociatesAll numbers exclude exceptional items

Six months ended 30 June

20042005£m

Year ended31 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

21

Free cash flow

Six months ended 30 June

20042005£m

Year ended31 December

2004

Operating cash flow from subsidiaries

Dividends - JV’s 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

20042005£m

Year ended31 December

2004

Free cash flowGrowth capexAcquisitions, disposals & investmentsTXU recovery - exceptional Rights issueRefinancing costs - exceptional Funding from minorities, FX & otherDecrease/(increase) in net debtOpening external debtTransitional IAS32/39 adjustmentAcquired debt Closing external debt

134(95)

9744

--

(110)70

(2,739)44

-(2,625)

41(81)(10)

---

6414

(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

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

IPRCorporate

(2,766)

(3,175)

(23)

(181)

(872)

(1,097)

(487)

-

--

409

Project cash

(Debt)*

(349)

2015

20172007/08

2012/13

2010

2023

n/a

Maturity

2012

2005

2008(166)

(166)

IPM – Mitsui preferred equity

(1,421)

(581)

(321)(273)

(28)

(218)

JV’s / 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