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Preliminary Results

Preliminary Results. Year ended 31 December 2010. All numbers in this presentation exclude exceptional items and specific IAS 39 mark to market movements, unless stated otherwise. Introduction. Dirk Beeuwsaert, Chairman. Introduction. Global leader in independent power generation

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Preliminary Results

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  1. Preliminary Results Year ended 31 December 2010 All numbers in this presentation exclude exceptional items and specific IAS 39 mark to market movements, unless stated otherwise

  2. Introduction Dirk Beeuwsaert, Chairman

  3. Introduction Global leader in independent power generation Well balanced portfolio Strong committed growth profile Ideally positioned to capture further growth in fast developing markets Robust capital structure Outstanding team Integration on track 3

  4. 2010 IPR Results Mark Williamson, Chief Financial Officer All numbers in this presentation exclude exceptional items and specific IAS 39 mark to market movements, unless stated otherwise

  5. 2010 IPR financial highlights • Good financial performance • Profit from operations of £995m (20091: £1,030m) • EPS of 29.1 pence (20091: 26.3 pence) • earnings up 11% • favourable tax rate of 16% • Strong free cash flow of £708m (20091: £724m) • Net exceptional charge of £275m pre-tax(2009: £354m gain) • Full year dividend of 10.91p per share proposed (2009: 12.53p) Underlying EPSup 11% 2010 29.1p 2009 32.4p 6.1p 26.3p Czech FX benefited EPS by 1.0p 1 2009 results stated excluding the Czech business that was sold during the year

  6. Year-on-year PFO change £1,148m £1,030m £995m Czech(£118m) NorthAmerica (£8m) Corporate£4m Australia(£3m) Asia£9m Europe(£61m) MiddleEast£24m 2009 2010 2009ex Czech

  7. Strong free cash flow £791m £724m Net interest paid£62m £708m Czech(£67m) Dividends JV&Associates £8m Tax paid (net) £9m PFO(£35m) Workingcapital & other(£28m) MaintenanceCapex (£32m) 2009 2010 2009ex Czech

  8. International Power - Post Combination Mark Williamson, Chief Financial Officer Unaudited All numbers in this presentation exclude exceptional items and specific IAS 39 mark to market movements, unless stated otherwise

  9. Pro forma Income Statement1 % Change 2010£m 2009£m 2010 Adjusted COI (£m)2,3 Year ended 31 December EBITDA Depreciation, amortisation and other Current Operating Income Interest Tax Income from Associates Profit for the year Non controlling interests Net income group shareEPS Effective tax rate 3,081 (861) 2,220 (683) (415) 168 1,290 (271) 1,019 20.1p 27% 13% 10% 7% 3,485 (1,137) 2,348 (746) (381) 195 1,416 (326) 1,090 21.5p 23% 2010£m 2009£m COI Associates Adjusted COI 2,348 195 2,543 2,220 168 2,388 Australia233 Latin America967 Asia260 9% 36% 10% META315 12% 18% 15% Europe491 North America392 1The Preliminary Statement describes the assumptions used to derive the pro forma data, 2009 is adjusted to remove the Czech business 2 Current Operating Income (COI), “Adjusted COI” is COI adjusted for results of Associates, 3 Percentages stated before Corporate costs

  10. Pro forma 2010 Current Operating Income 2010£m 2009£m AdjustedCurrentOperatingIncome AdjustedCurrentOperatingIncome CurrentOperatingIncome CurrentOperatingIncome Associates PAT Associates PAT Year ended 31 December Latin America North America UK – Europe META Asia Australia Corporate costs 966 384 442 240 198 233 (115) 2,348 1 8 49 75 62 - - 195 967 392 491 315 260 233 (115) 2,543 746 525 519 190 128 236 (124) 2,220 1 8 39 54 66 - - 168 747 533 558 244 194 236 (124) 2,388

  11. Latin America • 703MW commissioned in 2009 and 2010 • Good price environment for hydro in 2010 • Technical issues at a Panama plant in 2010 • Consolidation of assets in Northern Chile • Currency appreciation Adjusted COI Pro forma 2010£m 2009£m Change% Year ended 31 December -4% 2010 967 82% 14% 8% COI Associates Adjusted COI 966 1 967 746 1 747 29 - 29 2009 747 3% 78% 8% 11% Other Brazil Chile Peru Regional Adjusted COI contribution1 Contract type2 36% Long term 100% 1 Percentage of Adjusted COI stated before Corporate costs 2 % of net capacity, where long term contracted > 3 years

  12. North America • Continued weak market conditions for merchant generation • Increased ownership of Astoria 1 from January 2010 • Improved retail volumes and margins • Low US gas prices reduce LNG profitability • basis differential secures positive margins • opportunity to divert uncommitted LNG Adjusted COI3 Pro forma 2010£m 2009£m Change% Year ended 31 December 2010 392 66% 21% 13% COI Associates Adjusted COI 384 8 392 525 8 533 (27) - (26) 2009 533 54% 40% 6% Gas Retail Generation Regional Adjusted COI contribution1 Contract type2 Wind 2% PS9% Longterm 20% 15% Short term/ uncontracted 69% 1 Percentage of Adjusted COI stated before Corporate costs 2 % of net capacity, “PS” Pumped Storage, where long term contracted > 3 years 3 Excludes regional operating costs and trading

  13. UK - Europe • Lower spreads due to high reserve margins in the UK • Lower system volatility – reduced contribution from First Hydro • Rugeley improved availability in 2010 - extended outage in 2009 • Improved retail margins Adjusted COI3 Pro forma 2010£m 2009£m Change% Year ended 31 December 2010 491 89% 11% 13% COI Associates Adjusted COI 442 49 491 519 39 558 (15) 26 (12) 2009 558 92% 8% Retail Generation3 Regional Adjusted COI contribution1 Contract type2 Wind 14% PS17% 18% Long term 19% Short term/ uncontracted 50% 1 Percentage of Adjusted COI stated before Corporate costs 2 % of net capacity, “PS” Pumped Storage, where long term contracted > 3 years 3 net of regional operating costs

  14. Middle East, Turkey and Africa • First time contributions from Fujairah F2, Al Dur, RasLaffan C and Marafiq • 5.5GW3 expected to enter service in 2011 • Riyadh IPP and Barka3/Sohar 2 signed in 2010 Adjusted COI Pro forma 2010£m 2009£m Change% Year ended 31 December 2010 315 COI Associates Adjusted COI 240 75 315 190 54 244 26 39 29 2009 244 Regional Adjusted COI contribution1 Contract type2 12% Long term 100% 1 Percentage of Adjusted COI stated before Corporate costs 2 % of net capacity, where long term contracted > 3 years 3 Gross capacity ( 1.4GW Net)

  15. Asia • Glow, Thailand • higher availability • additional 115MW commissioned in November • Singapore strong demand recovery • Gas distribution business proportionately consolidated from July 2010 Adjusted COI Pro forma 2010£m 2009£m Change% Year ended 31 December 2010 260 COI Associates Adjusted COI • 198 • 62 • 260 • 128 • 66 • 194 • 55 • (6) • 34 2009 194 Regional Adjusted COI contribution1 Contract type2 Short term/ uncontracted 21% 10% Long term 79% 1 Percentage of Adjusted COI stated before Corporate costs 2 % of net capacity, where long term contracted > 3 years

  16. Australia • Hazelwood 2010 – outages on 2 units • Strengthening Australian Dollar • SEAGas disposal Adjusted COI Pro forma 2010£m 2009£m Change% Year ended 31 December 2010 233 COI Associates Adjusted COI • 233 • - • 233 • 236 • - • 236 • (1) • - • (1) 2009 236 Regional Adjusted COI contribution1 Contract type2 Wind 2% Long term 24% 9% Short term/ Uncontracted 74% 1 Percentage of Adjusted COI stated before Corporate costs 2 % of net capacity, where long term contracted > 3 years

  17. Capital structure & liquidity £11.0bn • Strong credit metrics • debt capitalisation 38% • net debt to EBITDA 3.2x • Investment Grade credit rating confirmed by Moody’s (Baa3), Standard and Poor’s (BBB-) • GDF SUEZ financing facility operational - £3.1bn • £944m to refinance existing project finance and subordinated facilities • £1,211m to refinance existing project finance facilities at maturity Al Hiddconsolidation£0.6bn Pro forma net debt £bn IPR Combined CashInjection (£1.9bn) SpecialDividend£1.4bn Year ended 31 December 0.9 0.2 4.2 10.1 15.4 (4.4) 11.0 Gross Debt Convertible Bonds Senior Notes Debt in listed subsidiaries Other Debt Gross Debt Cash Total Net Debt £5.6bn GDF SUEZ EI £5.4bn 2010 net debt standalone 2010 net debt combined Net debt excludes derivatives, cash collateral and the impact of measurement at amortised cost

  18. Pro forma free cash flow • High quality earnings with strong cash conversion • Strong cash flow to fund growth and service dividend Year ended 31 December 2010 (£m) 2010 2009 Movement • Operating cash flows from Subsidiaries and JVs • Dividends – Associates • Cash generated from operations1 • Net interest paid • Tax paid • Change in working capital requirements • Maintenance capex • Free cash flow 3,458 114 3,572 (586) (415) 71 • (411) • 2,231 3,048 108 3,156 (583) (363) (22) • (414) • 1,774 410 6 416 (3) (52) 93 • 3 • 457 1Before income tax and working capital requirements

  19. Key financial assumptions - 2011 • Effective interest rate on gross debt • after capitalisation of interest • after synergies of £35m anticipated in 2011 • Non controlling interests charge in 2010 amounts to £326m (2009: £271m) • Fair value exercise to be concluded for the half year • Presentation currency Euro from Q1 2011 2010Pro forma 2011Forecast • Growth capex1 - committed cash flow • Maintenance capex1 • Effective interest rate on Gross Debt • Effective tax rate • £1.9bn • £412m • 5.8% • 23% • £2.0bn • £450m 5.5% 27% 1 Includes proportionate consolidation of JVs, excludes associates. Also excludes expenditure incurred by assets accounted for as finance leases or service concession arrangements

  20. Conclusion • Highly visible earnings and cash flow • 50% of capacity long term contracted • adjusted COI of £2,543m (2009: £2,388m) • strong free cash flow of £2,231m (2009: £1,774m) • Strong balance sheet • Investment Grade rating achieved • competitive cost of capital • Well positioned for continuing growth

  21. Regional Review and Integration Update Philip Cox

  22. World leading IPP Enlarged International Power • Well balanced portfolio • Significant capacity under construction • Access to high growth markets • Financial strength • Strong operational expertise • Highly experienced management team AsiaBangkok UK-Europe London Total power capacity Total power capacity 3.7GW 9.0GW in operation in operation 1.5GW 0.3GW under construction under construction North AmericaHouston AustraliaMelbourne Total power capacity 13.0GW in operation Total power capacity 0.3GW 3.0GW under construction in operation 0.0GW Latin AmericaFlorianópolis under construction Middle East,Turkey & AfricaDubai Total power capacity Total power capacity 6.1GW 6.7GW in operation in operation 2.8GW 1.9GW under construction under construction All GW numbers are on a net (by ownership) basis as at 31 December 2010

  23. Well positioned to benefit from strong growth in developing economies Electricity Demand Growth (%) 8 6 2009 2010-15 4 2 0 NorthAmerica Asia Australia LatinAmerica MiddleEast,Turkey & Africa UK-Europe -2 -4 -6 • New-build heavily focused in contracted markets Countries included in the graph above include: UK-Europe (UK, France, Germany, Italy and Spain), North America (United States, Canada and Mexico), Latin America (Brazil, Chile and Peru), Middle East Turkey and Africa (GCC states, Morocco and Turkey), Asia (Indonesia, Thailand, Pakistan and Singapore).

  24. Projects in high growth markets - online in the next 3 years(1) Asia META Australia North America Latin America UK - Europe RasLaffan C 179MW E-CL Hornitos (CTH) 47MW Laja 37MW Jirau 1,127MW Elecgas 210MW HUBCO Narowal 36MW TNP2 110MW HUBCO - Laraib 11MW Projects under construction(cumulative net GW) Al Dur 373MW Synergen 24MW Chilca Uno 164MW Uch 2 281MW 6.7 Monte Redondo 10MW Estreito 224MW Paiton III 253MW 4.0 2.2 2011 2012 2013 2011 2012 2013 IPR Europe Wind 2MW Estreito 75MW Bahia las MinasConventional 4MW Ilo 2 247MW T-Power140MW Astoria 2 173MW PAR 49MW Gheco One (Glow) 297MW Barka 3 342MW Shuweihat 2 302MW E-CL Andina (CTA) 79MW Jirau 601MW Sohar 2 342MW Phase 5 (Glow) 236 MW Dos Mares 90 MW Senoko 258 MW Riyadh 346MW 1 MW stated on a net capacity basisas at 31 December 2010

  25. Significant development pipeline • Significant current pipeline of bidding activity • 18GW gross, 8GW net projects in development across core regions • principally Latin America, META and Asia • focused on contracted markets • broad fuel mix leveraging technical expertise • Competitive advantage through wide geographic footprint and lower cost of finance Examples of development projects – all long-term contracted • Latin America • hydro, thermal, wind – opportunities across core markets • Middle East, Turkey & Africa • CCGTs in Gulf States • renewables and coal in Morocco • peaking plants in South Africa • Asia • high efficiency coal and geothermal in Indonesia • thermal projects in Vietnam • North America • renewables, particularly Canada • generation and gas distribution in Mexico

  26. Regional Review

  27. Latin America • Strong demand growth across the region • 3 listed companies: TractebelEnergia, E-CL and Enersur • Output largely contracted through mid to long-term offtake arrangements • contracts include inflation or fuel price escalators • TractebelEnergia - the largest private power generator in Brazil • Estreito construction programme on track • first unit to commence operation in H1 2011 • expected output sold under 30 year contract • Jirau under construction • first unit to commence operation in 2012, ramping up in 2013 and 2014 • 30 year PPA from 2013 for 70% of originally expected output/assured energy • Chilean E.CL new coal capacity to commence in H2 2011 • Currently 10 sites under construction in Brazil, Chile, Peru and Panama on hydro, thermal and LNG • Pipeline of further opportunities across Brazil, Chile, Peru and Panama under development Brazil, Chile, Peru1 Demand data Projected demandgrowth 2010-2015 p.a.2 6% Per capita consumption 2,100kWh* *UK per capita consumption = 5,600kWh Committed Growth(based on net MW ownership) GW 10 GROWTH 9 2013 8 7 2012 2011 6 5 Existing 0 2010 2011 2012 2013 1 Aggregate figures for 3 countries / weighted averages 2 Sources: Brazil: EPE, Peru: COES-SINAC, Chile: CNE/CDEC, Per capita based on EIA Energy Statistics

  28. North America • Texas and New England – well positioned to capture value from market recovery • Growing retail business to commercial and industrial customers in the US • serving 60,000 customer accounts across 10 US states and Washington, DC • supplied 30.7TWh of electricity in 2010 • LNG business • located in premium North Eastern market in the US • winter sales from Everett Terminal made at attractive premiums • diversion deals to Far East and Europe supplement sales in the North Eastern US • Astoria Phase II - expected to commence operations in H2 2011 • Renewables in Canada • Pointe-Aux-Roches expected to commence operation in H2 2011 • pipeline of further opportunities backed by long-term PPAs and feed-in tariffs • Power and gas opportunities in Mexico United States Merchant market data 2011 average contracted position1 Texas 60% New England 70% NYC 90% North Eastern LNG business 90% Reserve Margin (Texas ERCOT) % 25 20 15 Target reserve 10 5 2011 2012 2013 2014 2015 2016 0 Sources: ERCOT Capacity Demand Report and Company estimates 1 Represents total contracted generation as a % of forecast generation for the year

  29. UK-Europe United Kingdom • IPR assets represent 7% of total UK installed generation capacity • Growing commercial and industrial retail business provides route to market • electricity and gas • 11.5TWh electricity sales in 2010 • Strong, diversified generation portfolio • well positioned to benefit from market recovery • Electricity Market Reform • IPR actively engaged Continental Europe • Consistent performance from contracted assets • Elecgas CCGT (Portugal) now operational • T-Power (Belgium) to commence operations in 2011 • IPR equity interest (33%) to be sold United Kingdom Merchant market data 2011 average contracted position1 Rugeley 75% Saltend 90% Deeside, Teesside and Shotton 15% Reserve Margin % 25 20 15 10 Target reserve 5 0 2011 2012 2013 2014 2015 1 Represents total contracted generation as a % of forecast generation for the year

  30. Middle East, Turkey & Africa • Stronger GCC1 position following combination • Delivery of 4 major growth projects in 2011 • Fujairah F2 (UAE) contributing to profitability • Al Dur, RasLaffan C and Shuweihat S2 • Further growth across the META region • Morocco - preferred bidder for 2 projects (Safi and Tarfaya) • South Africa - preferred bidder for 1,000MW oil-fired peakers • Turkey - additional growth potential through 16GW privatisation process • 5GW of greenfield opportunities visible in 2011 within META region GCC, Turkey and Morocco Demand data Projected demandgrowth 2010-2015 p.a. 7% Per capita consumption 3,300kWh* *UK per capita consumption = 5,600kWh Committed Growth(based on net MW ownership) GW 10 GROWTH 9 2013 8 7 2011 6 5 Existing 0 2010 2011 2012 2013 1 Cooperation Council for the Arab States of the Gulf: Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the UAE.

  31. Australia • Spot and forward prices affected by: • mild weather • low electricity price volatility • Simply Energy (retail) benefitting from improved margins • Australian Government has announced a ‘framework for discussion’ for a CO2 price • indicates potential to start from July 2012 • subject to political agreement and industry consultation Australia Merchant market data 2011 average contracted position1 Hazelwood 70% Loy Yang B 85% Pelican Point 85% Reserve Margin Chart(VIC and SA) % 25 20 15 Target reserve 10 5 0 2011 2012 2013 2014 2015 1 Represents total contracted generation as a % of forecast generation for the year

  32. Asia • All long-term contracted markets, except Singapore • Senoko output highly contracted for 2011 • Projects under construction across Thailand, Indonesia, Singapore and Pakistan • Glow CCGT project to commence operations in 2011 • Glow coal project (Gheco-1) under construction to commence operations 2012 • Paiton III on track to commence operation in 2012 • Senoko CCGT to commence operations in 2012 • Uch II to commence operation in 2013 • Pipeline of further opportunities • in Indonesia, Philippines and Vietnam Indonesia, Pakistan, Singapore, Thailand Demand data Projected demandgrowth 2010-2015 p.a. 4%-5% Per capita consumption 750kWh* *UK per capita consumption = 5,600kWh Committed Growth(based on net MW ownership) GW 6 GROWTH 2013 5 2012 4 2011 3 Existing 0 2010 2011 2012 2013

  33. Projected synergies (£m) 165 154 148 140 129 Financing 61 61 61 52 58 76 Operating 87 93 104 33 82 77 43 2011 2012 2013 2014 2015 2016 Integration and Synergies • Integration progressing well • management team in place • Operational synergies • progress on operational synergies • O&M, insurance, procurement • planned closure of regional offices • Financial synergies • US$395m of IPM debt repaid • US$780m corporate revolver cancelled • US$807m Coleto and US$319m US peakers project debt repayment • One off cost of implementation £130m

  34. 2011 outlook • Portfolio 50% long-term contracted • Good visibility of growth in 2011, in particular driven by Latin America • Key regional factors • Latin America – capacity growth in 2011, inflation escalation, one-off unplanned outage in 2010, strengthening currency • North America – merchant market conditions largely unchanged, 2011 will benefit from LNG diversion to Asia • UK-Europe – 2010 benefitted from higher price contracts placed in prior years, reduction in forward spreads • META – all capacity under long-term contracts • Australia – forward prices softer, Hazelwood 70% contracted • Asia – all long-term contracts, capacity growth in 2011 • Good progress on integration and synergies

  35. Balanced generation portfolio – geography, fuel and contract • Backed by strong free cashflow High qualityearnings • Significant capacity under construction • Extensive development pipeline • Exposure to growth markets Growth • Robust capital structure and low cost of debt • Investment grade credit rating Access tocapital • Integration underway and on track • Projected synergies of £165 million per annum Synergies Dividends • Targeting an EPS payout ratio of 40 per cent Delivering value for shareholders

  36. Appendix

  37. Merchant historic performance • Gas hedges in place at Hays and Midlothian to protect from further reduction in gas prices North America Midlothian Hays 2010 2009 2010 2009 Spark spread ($/MWh) Load factor $9 25% $13 30% Spark spread ($/MWh) Load factor $10 35% $14 50% Coleto Creek 2010 2009 New England 2010 2009 Dark spread ($/MWh) Load factor $32 80% $27 95% Spark spread ($/MWh) Load factor $23 40% $24 35% • Dark spread excludes the cost of SO2 credits and non-cash write back of fair value provisions • ISO-NE spark spreads include income from the Forward Capacity Market and exclude the cost of CO2

  38. Merchant historic performance • Stated spreads exclude the cost of CO2 and are adjusted to reflect the fuel optimisation achieved by trading our coal and gas assets as a portfolio UK Deeside Saltend Rugeley 2010 2009 2010 2009 2010 2009 Spark / dark spread (£/MWh) Load factor £12 65% £16 65% £22 85% £25 85% £42 45% £26 60% Australia Victoria, Hazelwood 2010 2009 Average price (A$/MWh) Load factor $42 80% $45 80%

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