Following this note you will find a report explaining our current businesses across the globe and highlighting our growth opportunities. The report will also give you some indication as to how we met some of the unusual challenges that confronted us over the year. In the fourth quarter of 2002 alone, your Company responded quickly and effectively to adversity such as the physical collapse of the boiler house roof at EOP and the financial collapse of TXU Europe.

I assumed executive responsibility for your Company at a pivotal time. Our financial performance in the first three years of our existence has been increasingly robust. But we now face tough conditions in two of our key markets, the US and the UK. This has caused us to revise our earnings guidance to a lower level for next year. Nonetheless we believe that we will emerge out of this environment in the strongest competitive position that we have enjoyed to date.

Our other key markets namely Australia, the Middle East and continental Europe enjoy better market conditions. In Australia, we have a merchant portfolio that continues to operate reliably and profitably in a positive market. In the Middle East we have a very healthy and growing portfolio of fully contracted assets. In continental Europe our assets continue to perform well, and this market is also attractive as it offers new growth opportunities. The benefit of our international diversity has given us strength over the past year that our counterparts lacked and, over time, it should continue to give us a healthy degree of protection against the inherent local cycles of individual markets.

Our financial strength is our competitive advantage at this time when access to capital is the single most important issue for our industry. We seek to take advantage of this strength to enhance our position and grow the Company through both, acquisitions and greenfield projects.

Looking ahead, we are a wholesale power generation company and that is what we will remain. Any other business venture we undertake will be very closely related to it. We will continue to strive to achieve the best possible financial results from our business through revenue optimisation and judicious cost cutting. We will continue to demand the best possible health and safety environment at all locations for the benefit not only of the personnel of International Power, but also for the benefit of our guests and neighbours. We will continue to support and participate actively in the local communities that host the Company’s power plants for the betterment of all.

And, finally, we will move aggressively but prudently to use the very real competitive advantage that International Power presently enjoys, in order to strengthen the business for the ultimate benefit of shareholders and other stakeholders in International Power.

We aim to make a difference.